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Document and Entity Information - shares	9 Months Ended
Document and Entity Information - shares	Sep. 30, 2014	Oct. 27, 2014
Document and Entity Information
Entity Registrant Name	Monster Beverage Corp
Entity Central Index Key	0000865752
Document Type	10-Q
Document Period End Date	Sep. 30, 2014
Amendment Flag	false
Current Fiscal Year End Date	--12-31
Entity Current Reporting Status	Yes
Entity Filer Category	Large Accelerated Filer
Entity Common Stock, Shares Outstanding		167,637,920
Document Fiscal Year Focus	2014
Document Fiscal Period Focus	Q3

CONDENSED CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands	Sep. 30, 2014	Dec. 31, 2013
CURRENT ASSETS:
Cash and cash equivalents	$ 408,323	$ 211,349
Short-term investments	588,041	402,247
Accounts receivable, net	330,176	291,638
Distributor receivables	2,989	4,542
Inventories	205,449	221,449
Prepaid expenses and other current assets	25,472	21,376
Intangibles held-for-sale, net	18,079
Prepaid income taxes	18,026	9,518
Deferred income taxes	20,924	20,924
Total current assets	1,617,479	1,183,043
INVESTMENTS	28,419	9,792
PROPERTY AND EQUIPMENT, net	88,487	88,143
DEFERRED INCOME TAXES	71,530	63,611
INTANGIBLES, net	49,100	65,774
OTHER ASSETS	7,863	10,146
Total Assets	1,862,878	1,420,509
CURRENT LIABILITIES:
Accounts payable	145,373	119,376
Accrued liabilities	66,599	59,113
Accrued promotional allowances	127,265	99,470
Deferred revenue	14,335	13,832
Accrued compensation	14,342	14,864
Income taxes payable	2,697	9,359
Total current liabilities	370,611	316,014
DEFERRED REVENUE	105,827	112,216
COMMITMENTS AND CONTINGENCIES (Note 11)
STOCKHOLDERS' EQUITY:
Common stock - $0.005 par value; 240,000 shares authorized; 206,918 shares issued and 167,636 outstanding as of September 30, 2014; 206,014 shares issued and 166,822 outstanding as of December 31, 2013	1,035	1,030
Additional paid-in capital	417,601	368,069
Retained earnings	2,205,179	1,847,325
Accumulated other comprehensive loss	(6,337)	(1,233)
Common stock in treasury, at cost; 39,282 and 39,192 shares as of September 30, 2014 and December 31, 2013, respectively	(1,231,038)	(1,222,912)
Total stockholders' equity	1,386,440	992,279
Total Liabilities and Stockholders' Equity	$ 1,862,878	$ 1,420,509

CONDENSED CONSOLIDATED BALANCE SHEETS (Parenthetical) - $ / shares shares in Thousands	Sep. 30, 2014	Dec. 31, 2013
CONDENSED CONSOLIDATED BALANCE SHEETS
Common stock, par value (in dollars per share)	$ 0.005	$ 0.005
Common stock, shares authorized	240,000	240,000
Common stock, shares issued	206,918	206,014
Common stock, shares outstanding	167,636	166,822
Common stock in treasury, shares	39,282	39,192

CONDENSED CONSOLIDATED STATEMENTS OF INCOME - USD ($) shares in Thousands, $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2014	Sep. 30, 2013	Sep. 30, 2014	Sep. 30, 2013
CONDENSED CONSOLIDATED STATEMENTS OF INCOME
NET SALES	$ 635,972	$ 590,422	$ 1,859,301	$ 1,705,579
COST OF SALES	294,052	282,952	851,274	809,809
GROSS PROFIT	341,920	307,470	1,008,027	895,770
OPERATING EXPENSES	152,013	156,041	453,443	457,610
OPERATING INCOME	189,907	151,429	554,584	438,160
OTHER (EXPENSE) INCOME:
Interest and other (expense) income, net	(1,012)	(750)	(668)	(8,690)
(Loss) gain on investments and put options, net (Note 4)	(26)	44	(39)	2,681
Total other (expense) income	(1,038)	(706)	(707)	(6,009)
INCOME BEFORE PROVISION FOR INCOME TAXES	188,869	150,723	553,877	432,151
PROVISION FOR INCOME TAXES	67,269	58,536	196,023	169,596
NET INCOME	$ 121,600	$ 92,187	$ 357,854	$ 262,555
NET INCOME PER COMMON SHARE:
Basic (in dollars per share)	$ 0.73	$ 0.55	$ 2.14	$ 1.58
Diluted (in dollars per share)	$ 0.70	$ 0.53	$ 2.06	$ 1.51
WEIGHTED AVERAGE NUMBER OF SHARES OF COMMON STOCK AND COMMON STOCK EQUIVALENTS:
Basic (in shares)	167,346	167,457	167,116	166,483
Diluted (in shares)	174,270	173,948	174,016	173,344

CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2014	Sep. 30, 2013	Sep. 30, 2014	Sep. 30, 2013
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME
Net income, as reported	$ 121,600	$ 92,187	$ 357,854	$ 262,555
Other comprehensive (loss) income:
Change in foreign currency translation adjustment	(5,716)	1,850	(5,104)	(1,683)
Available-for-sale investments:
Reclassification adjustment for net gains included in net income				(1,525)
Net change in available-for-sale investments				(1,525)
Other comprehensive (loss) income	(5,716)	1,850	(5,104)	(3,208)
Comprehensive income	$ 115,884	$ 94,037	$ 352,750	$ 259,347

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands	9 Months Ended
	Sep. 30, 2014	Sep. 30, 2013
CASH FLOWS FROM OPERATING ACTIVITIES:
Net income	$ 357,854	$ 262,555
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization	19,124	16,444
Gain on disposal of property and equipment	(379)	(53)
Stock-based compensation	22,509	21,592
Loss on put option	771	411
Gain on investments, net	(732)	(3,091)
Deferred income taxes	(7,919)	(926)
Tax benefit from exercise of stock options	(11,541)	(30,250)
Effect on cash of changes in operating assets and liabilities:
Accounts receivable	(45,759)	(104,666)
Distributor receivables	2,047	(3,384)
Inventories	13,300	(46,687)
Prepaid expenses and other current assets	(4,564)	(13,026)
Prepaid income taxes	(8,723)	(4,906)
Accounts payable	30,032	33,731
Accrued liabilities	12,387	21,157
Accrued promotional allowances	32,421	40,175
Accrued distributor terminations	(2,338)	3,524
Accrued compensation	(467)	(51)
Income taxes payable	4,909	78,447
Deferred revenue	(5,883)	4,838
Net cash provided by operating activities	407,049	275,834
CASH FLOWS FROM INVESTING ACTIVITIES:
Maturities of held-to-maturity investments	545,774	179,575
Sales of available-for-sale investments		5,775
Sales of trading investments	12,075	1,250
Purchases of held-to-maturity investments	(761,538)	(392,870)
Purchases of property and equipment	(19,300)	(32,612)
Proceeds from sale of property and equipment	745	8,762
Increase in intangibles	(1,765)	(9,001)
Decrease (increase) in other assets	1,027	(7,576)
Net cash used in investing activities	(222,982)	(246,697)
CASH FLOWS FROM FINANCING ACTIVITIES:
Principal payments on debt	(1,316)	(1,322)
Tax benefit from exercise of stock options	11,541	30,250
Issuance of common stock	15,050	18,198
Purchases of common stock held in treasury	(8,126)	(13,401)
Net cash provided by financing activities	17,149	33,725
Effect of exchange rate changes on cash and cash equivalents	(4,242)	1,643
NET INCREASE IN CASH AND CASH EQUIVALENTS	196,974	64,505
CASH AND CASH EQUIVALENTS, beginning of period	211,349	222,514
CASH AND CASH EQUIVALENTS, end of period	408,323	287,019
Cash paid during the period for:
Interest	27	36
Income taxes	$ 210,090	$ 97,171

CONSOLIDATED STATEMENTS OF CASH FLOWS NON-CASH SUPPLEMENTAL DATA - USD ($) $ in Millions	9 Months Ended
	Sep. 30, 2014	Sep. 30, 2013
CONSOLIDATED STATEMENTS OF CASH FLOWS NON-CASH SUPPLEMENTAL DATA
Capital leases for the acquisition of promotional vehicles	$ 0.7	$ 1.9

BASIS OF PRESENTATION	9 Months Ended
BASIS OF PRESENTATION	Sep. 30, 2014
BASIS OF PRESENTATION
BASIS OF PRESENTATION	1. BASIS OF PRESENTATION Reference is made to the Notes to Consolidated Financial Statements, in Monster Beverage Corporation and Subsidiaries (the “Company” or, in reference to the Company’s former name, “Hansen Natural Corporation”) Annual Report on Form 10-K for the year ended December 31, 2013 (“Form 10-K”) for a summary of significant accounting policies utilized by the Company and its consolidated subsidiaries and other disclosures, which should be read in conjunction with this Quarterly Report on Form 10-Q (“Form 10-Q”). The Company’s condensed consolidated financial statements included in this Form 10-Q have been prepared in accordance with accounting principles generally accepted in the United States of America (“GAAP”) and Securities and Exchange Commission (“SEC”) rules and regulations applicable to interim financial reporting. They do not include all the information and footnote disclosures normally included in annual financial statements prepared in accordance with GAAP. The information set forth in these interim condensed consolidated financial statements for the three- and nine-months ended September 30, 2014 and 2013 is unaudited and reflects all adjustments, which include only normal recurring adjustments and which in the opinion of management are necessary to make the interim condensed consolidated financial statements not misleading. Results of operations for periods covered by this report may not necessarily be indicative of results of operations for the full year. The preparation of financial statements in conformity with GAAP necessarily requires management to make estimates and assumptions that affect the reported amount of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting periods. Actual results could differ from these estimates.

ACQUISITIONS AND DIVESTITURES	9 Months Ended
ACQUISITIONS AND DIVESTITURES	Sep. 30, 2014
ACQUISITIONS AND DIVESTITURES
ACQUISITIONS AND DIVESTITURES	2. ACQUISITIONS AND DIVESTITURES On August 14, 2014, the Company and The Coca-Cola Company (“Coca-Cola”) entered into definitive agreements for a long-term strategic relationship in the global energy drink category (the “Coca-Cola Transaction”). In the Coca-Cola Transaction, the Company, New Laser Corporation, a wholly owned subsidiary of the Company (“NewCo”), New Laser Merger Corp., a wholly owned subsidiary of NewCo (“Merger Sub”), Coca-Cola and European Refreshments, an indirect wholly owned subsidiary of Coca-Cola, entered into a transaction agreement, and the Company, Coca-Cola and NewCo entered into an asset transfer agreement. Pursuant to the agreements, the Company will reorganize into a new holding company by merging Merger Sub into the Company, with the Company surviving as a wholly owned subsidiary of NewCo. In the merger, each outstanding share of the Company’s common stock will be converted into one share of NewCo’s common stock. Subject to the terms and conditions of the agreements, upon the closing of the Coca-Cola Transaction, (1) NewCo will issue to Coca-Cola newly issued shares of common stock representing approximately 16.7% of the total number of shares of issued and outstanding NewCo common stock (after giving effect to the new issuance) and Coca-Cola will have the right to nominate two (reduced to one in 36 months or if Coca-Cola’s equity interest in NewCo exceeds 20%) individuals to NewCo’s Board of Directors, (2) Coca-Cola will transfer its global energy drink business (including the NOS®, Full Throttle®, Burn®, Mother®, Play® and Power Play®, and Relentless® brands) to NewCo, and the Company will transfer its non-energy drink business (including the Hansen’s® Natural Soda, Peace Tea®, Hubert’s® Lemonade and Hansen’s® Juice Product brands) to Coca-Cola, (3) the Company and Coca-Cola will amend their current distribution coordination agreements by expanding distribution of the Company’s products into additional territories pursuant to long-term commercial agreements with Coca-Cola’s network of owned or controlled bottlers/distributors and independent bottling and distribution partners, and (4) Coca-Cola will make a net cash payment of $2.15 billion to the Company ($625.0 million of which will be held in escrow, subject to release upon achievement of milestones relating to the transfer of distribution rights). The closing of the transaction is subject to customary closing conditions and is expected to close in early 2015.

RECENT ACCOUNTING PRONOUNCEMENTS	9 Months Ended
RECENT ACCOUNTING PRONOUNCEMENTS	Sep. 30, 2014
RECENT ACCOUNTING PRONOUNCEMENTS
RECENT ACCOUNTING PRONOUNCEMENTS	3. RECENT ACCOUNTING PRONOUNCEMENTS In September 2014, the Company elected to early adopt FASB ASU No. 2014-08, “Presentation of Financial Statements and Property, Plant, and Equipment - Reporting Discontinued Operations and Disclosures of Disposals of Components of an Entity”. ASU 2014-08 provides new guidance related to the definition of a discontinued operation and requires new disclosures of both discontinued operations and certain other disposals that do not meet the definition of a discontinued operation. The adoption of ASU 2014-08 did not have a material impact on the Company’s financial position, results of operations or liquidity. In June 2014, the Financial Accounting Standards Board (the “FASB”) issued Accounting Standards Update (“ASU”) No. 2014-12, “Compensation—Stock Compensation (Topic 718): Accounting for Share-Based Payments When the Terms of an Award Provide That a Performance Target Could Be Achieved after the Requisite Service Period (a consensus of the FASB Emerging Issues Task Force)”. ASU 2014-12 clarifies that a performance target that affects vesting and that could be achieved after the requisite service period be treated as a performance condition. A reporting entity should apply existing guidance in Topic 718 as it relates to awards with performance conditions that affect vesting to account for such awards. As such, the performance target should not be reflected in estimating the grant-date fair value of the award. Compensation cost should be recognized in the period in which it becomes probable that the performance target will be achieved and should represent the compensation cost attributable to the period(s) for which the requisite service has already been rendered. ASU 2014-12 is effective for annual periods, and interim periods within those years, beginning after December 15, 2015. Early adoption is permitted. ASU 2014-12 may be applied either (a) prospectively to all awards granted or modified after the effective date or (b) retrospectively to all awards with performance targets that are outstanding as of the beginning of the earliest annual period presented in the financial statements and to all new or modified awards thereafter. The adoption of ASU 2014-12 is not expected to have a material impact on the Company’s financial position, results of operations or liquidity. In May 2014, the FASB issued ASU No. 2014-09, “Revenue from Contracts with Customers”, which supersedes previous revenue recognition guidance. ASU 2014-09 requires that a company recognize revenue at an amount that reflects the consideration to which the company expects to be entitled in exchange for transferring goods or services to a customer. In applying the new guidance, a company will (1) identify the contract(s) with a customer; (2) identify the performance obligations in the contract; (3) determine the transaction price; (4) allocate the transaction price to the contract’s performance obligations; and (5) recognize revenue when (or as) the entity satisfies a performance obligation. ASU 2014-09 is effective for reporting periods beginning after December 15, 2016 and can be adopted using either a full retrospective or modified approach. The Company is currently evaluating the impact of ASU 2014-09 on its financial position, results of operations and liquidity.

INVESTMENTS

9 Months Ended

Sep. 30, 2014

INVESTMENTS

INVESTMENTS

4. INVESTMENTS

The following table summarizes the Company’s investments at:

September 30, 2014	Amortized Cost		Gross Unrealized Holding Gains		Gross Unrealized Holding Losses		Fair Value		Continuous Unrealized Loss Position less than 12 Months		Continuous Unrealized Loss Position greater than 12 Months
Held-to-Maturity
Short-term:
Certificates of deposit	$	2,504	$	-	$	-	$	2,504	$	-	$	-
Commercial paper	1,000		-		-		1,000		-		-
Municipal securities	579,695		123		-		579,818		-		-
Long-term:
Municipal securities	28,419		4		-		28,423		-		-
Total	$	611,618	$	127	$	-	611,745		$	-	$	-
Trading
Short-term:
Auction rate securities							4,842
Long-term:
Auction rate securities							-
Total							$	616,587

December 31, 2013	Amortized Cost		Gross Unrealized Holding Gains		Gross Unrealized Holding Losses		Fair Value		Continuous Unrealized Loss Position less than 12 Months		Continuous Unrealized Loss Position greater than 12 Months
Held-to-Maturity
Short-term:
Certificates of deposit	$	22,045	$	-	$	-	$	22,045	$	-	$	-
Commercial paper	5,991		-		-		5,991		-		-
Municipal securities	367,819		48		-		367,867		-		-
Total	$	395,855	$	48	$	-	395,903		$	-	$	-
Trading
Short-term:
Auction rate securities							6,392
Long-term:
Auction rate securities							9,792
Total							$	412,087

During the three- and nine-months ended September 30, 2014, realized gains or losses recognized on the sale of investments were not significant. During the year ended December 31, 2013, the Company recognized $2.5 million of realized gains on the sale of available-for-sale investments. Realized gains or losses on the sale of all other investments during the year ended December 31, 2013 were not significant.

The Company recognized a net gain through earnings on its trading securities as follows:

	Three-Months Ended September 30,				Nine-Months Ended September 30,
	2014		2013		2014		2013
Gain on trading securities sold	$	630	$	140	$	900	$	140
Gain (loss) on trading securities held	18		71		(167)		468
Gain on trading securites	$	648	$	211	$	733	$	608

The Company’s investments at September 30, 2014 and December 31, 2013 in certificates of deposit, commercial paper and/or municipal securities carried investment grade credit ratings. All of the Company’s investments at September 30, 2014 and December 31, 2013 in municipal, educational or other public body securities with an auction reset feature (“auction rate securities”) also carried investment grade credit ratings.

The following table summarizes the underlying contractual maturities of the Company’s investments at:

	September 30, 2014				December 31, 2013

	Amortized Cost		Fair Value		Amortized Cost		Fair Value
Less than 1 year:
Certificates of deposit	$	2,504	$	2,504	$	22,045	$	22,045
Commercial paper	1,000		1,000		5,991		5,991
Municipal securities	579,695		579,818		367,819		367,867
Due 1 - 10 years:
Municipal securities	28,419		28,423		-		-
Due 11 - 20 years:
Auction rate securities	4,842		4,842		11,102		11,102
Due 21 - 30 years:
Auction rate securities	-		-		5,082		5,082
Total	$	616,460	$	616,587	$	412,039	$	412,087

- Definition

The entire disclosure for investments in certain debt and equity securities.

+ References + Details

FAIR VALUE OF CERTAIN FINANCIAL ASSETS AND LIABILITIES

9 Months Ended

Sep. 30, 2014

FAIR VALUE OF CERTAIN FINANCIAL ASSETS AND LIABILITIES

FAIR VALUE OF CERTAIN FINANCIAL ASSETS AND LIABILITIES

5. FAIR VALUE OF CERTAIN FINANCIAL ASSETS AND LIABILITIES

Accounting Standards Codification (“ASC”) 820 provides a framework for measuring fair value and requires expanded disclosures regarding fair value measurements. ASC 820 defines fair value as the price that would be received on the sale of an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. ASC 820 also establishes a fair value hierarchy which requires an entity to maximize the use of observable inputs, where available. The three levels of inputs required by the standard that the Company uses to measure fair value are summarized below.

· Level 1: Quoted prices in active markets for identical assets or liabilities.

· Level 2: Observable inputs other than Level 1 prices, such as quoted prices for similar assets or liabilities; quoted prices in markets that are not active; or other inputs that are observable or can be corroborated by observable market data for substantially the full term of the related assets or liabilities.

· Level 3: Unobservable inputs that are supported by little or no market activity and that are significant to the fair value of the assets or liabilities.

ASC 820 requires the use of observable market inputs (quoted market prices) when measuring fair value and requires a Level 1 quoted price to be used to measure fair value whenever possible.

The following tables present the Company’s held-to-maturity investments at amortized cost as well as the fair value of the Company’s financial assets and liabilities that are recorded at fair value on a recurring basis, segregated among the appropriate levels within the fair value hierarchy at:

September 30, 2014	Level 1		Level 2			Level 3		Total
Cash	$	216,147	$	-		$	-	$	216,147
Money market funds	150,533		-			-		150,533
Certificates of deposit	-		2,504			-		2,504
Commercial paper	-		1,000			-		1,000
Municipal securities	-		649,757			-		649,757
Auction rate securities	-		-			4,842		4,842
Put option related to auction rate securities	-		-			320		320
Foreign currency derivatives	-		32			-		32
Total	$	366,680	$	653,293		$	5,162	$	1,025,135

Amounts included in:
Cash and cash equivalents	$	366,680	$	41,643		$	-	$	408,323
Short-term investments	-		583,199			4,842		588,041
Accounts receivable, net	-		159			-		159
Investments	-		28,419			-		28,419
Prepaid expenses and other current assets	-		-			320		320
Other assets	-		-			-		-
Accrued liabilities	-		(127		)	-		(127		)
Total	$	366,680	$	653,293		$	5,162	$	1,025,135

December 31, 2013	Level 1		Level 2			Level 3		Total
Cash	$	139,300	$	-		$	-	$	139,300
Money market funds	60,102		-			-		60,102
Certificates of deposit	-		22,045			-		22,045
Commercial paper	-		5,991			-		5,991
Municipal securities	-		379,766			-		379,766
Auction rate securities	-		-			16,184		16,184
Put option related to auction rate securities	-		-			1,092		1,092
Total	$	199,402	$	407,802		$	17,276	$	624,480

Amounts included in:
Cash and cash equivalents	$	199,402	$	11,947		$	-	$	211,349
Short-term investments	-		395,855			6,392		402,247
Investments	-		-			9,792		9,792
Prepaid expenses and other current assets	-		-			486		486
Other assets	-		-			606		606
Total	$	199,402	$	407,802		$	17,276	$	624,480

The majority of the Company’s short-term investments are classified within Level 1 or Level 2 of the fair value hierarchy. The Company’s valuation of its Level 1 investments, which include money market funds, is based on quoted market prices in active markets for identical securities. The Company’s valuation of its Level 2 investments, which include certificates of deposit, commercial paper and municipal securities, is based on other observable inputs, specifically a market approach which utilizes valuation models, pricing systems, mathematical tools and other relevant information for the same or similar securities. The Company’s valuation of its Level 2 foreign exchange contracts is based on quoted market prices of the same or similar instruments, adjusted for counterparty risk. There were no transfers between Level 1 and Level 2 measurements during the nine-months ended September 30, 2014 or the year ended December 31, 2013, and there were no changes in the Company’s valuation techniques.

The Company’s Level 3 assets are comprised of auction rate securities and put options. The Company’s Level 3 valuation utilized a mark-to-model approach which included estimates for interest rates, timing and amount of cash flows, credit and liquidity premiums, as well as expected holding periods for the auction rate securities. These assumptions are typically volatile and subject to change as the underlying data sources and market conditions evolve. A significant change in any single input could have a significant valuation impact; however, no single input has a more significant impact on valuation than another. There were no changes in the Company’s valuation techniques of its Level 3 assets during the nine-months ended September 30, 2014.

The following table presents quantitative information related to the significant unobservable inputs utilized in the Company’s Level 3 recurring fair value measurements as of September 30, 2014.

	Valuation Technique	Unobservable Input	Range (Weighted-Average)
Auction Rate Securities:
Trading	Discounted cash flow	Maximum rate probability	0.70%-2.81% (2.33%)
		Principal returned probability	85.10%-94.30% (87.03%)
		Default probability	4.46%-12.36% (10.64%)
		Liquidity risk	3.00%-3.00% (3.00%)
		Recovery rate	60-60 (60)

Put Options	Discounted cash flow	Counterparty risk	0.43%-0.54% (0.46%)

At September 30, 2014, the Company held auction rate securities with a face value of $5.2 million (amortized cost basis of $4.8 million). A Level 3 valuation was performed on the Company’s auction rate securities as of September 30, 2014 resulting in a fair value of $4.8 million for the Company’s trading auction rate securities (after a $0.4 million impairment), which are included in short-term and long-term investments.

In June 2011, the Company entered into an agreement (the “2011 ARS Agreement”), related to $24.5 million of par value auction rate securities (the “2011 ARS Securities”). Under the 2011 ARS Agreement, the Company has the right to sell the 2011 ARS Securities including all accrued but unpaid interest thereon (the “2011 Put Option”) as follows: (i) on or after July 1, 2013, up to $1.0 million aggregate par value; (ii) on or after October 1, 2013, up to an additional $1.0 million aggregate par value; and (iii) in quarterly installments thereafter based on a formula of the then outstanding 2011 ARS Securities, as adjusted for normal market redemptions, with full sale rights available on or after April 1, 2016. The 2011 ARS Securities will continue to accrue interest until redeemed through the 2011 Put Option, or as determined by the auction process, or should the auction process fail, the terms outlined in the prospectus of the respective 2011 ARS Securities. Under the 2011 ARS Agreement, the Company has the obligation, should it receive written notification from the put issuer, to sell the 2011 ARS Securities at par plus all accrued but unpaid interest. During the nine-months ended September 30, 2014, $12.1 million of 2011 ARS Securities were redeemed at par through the exercise of a portion of the 2011 Put Option ($2.3 million, $1.3 million and $3.7 million of par value 2011 ARS Securities were redeemed at par during the years ended December 31, 2013, 2012 and 2011, respectively). Subsequent to September 30, 2014, $1.0 million of 2011 ARS Securities were redeemed at par through the exercise of a portion of the 2011 Put Option. The 2011 Put Option does not meet the definition of derivative instruments under ASC 815. Therefore, the Company elected the fair value option under ASC 825-10 in accounting for the 2011 Put Option. As of September 30, 2014, the Company recorded $0.3 million as the fair market value of the 2011 Put Option, included in prepaid expenses and other current assets, as well as in other assets, in the condensed consolidated balance sheet.

The net effect of (i) the revaluation of the 2011 Put Option as of September 30, 2014; (ii) the redemption at par of certain 2011 ARS Securities; and (iii) the revaluation of the Company’s trading auction rate securities as of September 30, 2014 resulted in a loss of ($0.03) million and ($0.04) million, which is included in other (expense) income for the three- and nine-months ended September 30, 2014, respectively. The net effect of (i) the revaluation of the 2011 Put Option as of September 30, 2013; (ii) the redemption at par of certain 2011 ARS Securities; (iii) the revaluation of the Company’s trading auction rate securities as of September 30, 2013; and (iv) a recognized gain resulting from the redemption of previously other-than-temporary impaired securities; resulted in a gain of $0.04 million and $2.7 million, which is included in other (expense) income for the three- and nine-months ended September 30, 2013, respectively.

The following table provides a summary reconciliation of the Company’s financial assets that are recorded at fair value on a recurring basis using significant unobservable inputs (Level 3):

	Three-Months Ended September 30, 2014						Three-Months Ended September 30, 2013
	Auction Rate Securities			Put Options			Auction Rate Securities			Put Options
Opening Balance	$		12,819	$	994		$		17,762	$	1,686
Transfers into Level 3	-			-			-			-
Transfers out of Level 3	-			-			-			-
Total gains (losses) for the period:
Included in earnings	648			(674)			211			(167)
Included in other comprehensive income	-			-			-			-
Settlements	(8,625)			-			(1,250)			-
Closing Balance	$		4,842	$	320		$		16,723	$	1,519

	Nine-Months Ended September 30, 2014						Nine-Months Ended September 30, 2013
	Auction Rate Securities			Put Options			Auction Rate Securities			Put Options
Opening Balance	$	16,184		$		1,092	$	23,156		$	1,929
Transfers into Level 3	-			-			-			-
Transfers out of Level 3	-			-			-			-
Total gains (losses) for the period:
Included in earnings	732			(772)			3,091			(410)
Included in other comprehensive income	-			-			(2,483)			-
Settlements	(12,074)			-			(7,041)			-
Closing Balance	$	4,842		$		320	$	16,723		$	1,519

- Definition

The entire disclosure for the fair value of financial instruments (as defined), including financial assets and financial liabilities (collectively, as defined), and the measurements of those instruments as well as disclosures related to the fair value of non-financial assets and liabilities. Such disclosures about the financial instruments, assets, and liabilities would include: (1) the fair value of the required items together with their carrying amounts (as appropriate); (2) for items for which it is not practicable to estimate fair value, disclosure would include: (a) information pertinent to estimating fair value (including, carrying amount, effective interest rate, and maturity, and (b) the reasons why it is not practicable to estimate fair value; (3) significant concentrations of credit risk including: (a) information about the activity, region, or economic characteristics identifying a concentration, (b) the maximum amount of loss the entity is exposed to based on the gross fair value of the related item, (c) policy for requiring collateral or other security and information as to accessing such collateral or security, and (d) the nature and brief description of such collateral or security; (4) quantitative information about market risks and how such risks are managed; (5) for items measured on both a recurring and nonrecurring basis information regarding the inputs used to develop the fair value measurement; and (6) for items presented in the financial statement for which fair value measurement is elected: (a) information necessary to understand the reasons for the election, (b) discussion of the effect of fair value changes on earnings, (c) a description of [similar groups] items for which the election is made and the relation thereof to the balance sheet, the aggregate carrying value of items included in the balance sheet that are not eligible for the election; (7) all other required (as defined) and desired information.

+ References + Details

DERIVATIVE INSTRUMENTS AND HEDGING ACTIVITIES

9 Months Ended

Sep. 30, 2014

DERIVATIVE INSTRUMENTS AND HEDGING ACTIVITIES

DERIVATIVE INSTRUMENTS AND HEDGING ACTIVITIES

6. DERIVATIVE INSTRUMENTS AND HEDGING ACTIVITIES

The Company is exposed to foreign currency exchange rate risks related primarily to its foreign business operations. During the three- and nine-months ended September 30, 2014, the Company entered into forward currency exchange contracts with financial institutions to create an economic hedge to specifically manage a portion of the foreign exchange risk exposure associated with certain consolidated subsidiaries’ non-functional currency denominated assets and liabilities. All foreign currency exchange contracts entered into by the Company as of September 30, 2014 have terms of one month or less. The Company does not enter into forward currency exchange contracts for speculation or trading purposes.

The Company has not designated its foreign currency exchange contracts as hedge transactions under ASC 815. Therefore, gains and losses on the Company’s foreign currency exchange contracts are recognized in interest and other (expense) income, net, in the condensed consolidated statements of income, and are largely offset by the changes in the fair value of the underlying economically hedged item.

The notional amount and fair value of all outstanding foreign currency derivative instruments in the condensed consolidated balance sheets consist of the following at:

	September 30, 2014
Derivatives not designated as hedging instruments under FASB ASC 815-20	Notional Amount		Fair Value		Balance Sheet Location

Assets:
Foreign currency exchange contracts:
Receive USD/pay AUD	$	9,170	$	2	Accounts receivable, net
Receive USD/pay JPY	15,414		39		Accounts receivable, net
Receive USD/pay ZAR	13,169		107		Accounts receivable, net
Receive USD/pay CLP	2,069		8		Accounts receivable, net
Receive USD/pay COP	2,225		3		Accounts receivable, net

Liabilities:
Foreign currency exchange contracts:
Receive EUR/pay USD	$	12,808	$	(50)	Accrued liabilities
Receive CAD/pay USD	13,444		(70)		Accrued liabilities
Receive USD/pay MXN	3,279		(7)		Accrued liabilities

The Company had no foreign currency exchange contracts outstanding at December 31, 2013.

The net losses on derivative instruments in the condensed consolidated statements of income were as follows:

		Amount of loss recognized in income on derivatives
		Three-months ended
Derivatives not designated as hedging instruments under FASB ASC 815-20	Location of loss recognized in income on derivatives	September 30, 2014		September 30, 2013
Foreign currency exchange contracts	Interest and other income (expense), net	$	960	$	-

		Amount of loss recognized in income on derivatives
		Nine-months ended
Derivatives not designated as hedging instruments under FASB ASC 815-20	Location of loss recognized in income on derivatives	September 30, 2014		September 30, 2013
Foreign currency exchange contracts	Interest and other income (expense), net	$	194	$	-

- Definition

The entire disclosure for derivative instruments and hedging activities including, but not limited to, risk management strategies, non-hedging derivative instruments, assets, liabilities, revenue and expenses, and methodologies and assumptions used in determining the amounts.

+ References

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+ Details

INVENTORIES

9 Months Ended

Sep. 30, 2014

INVENTORIES

INVENTORIES

7. INVENTORIES

Inventories consist of the following at:

	September 30, 2014		December 31, 2013
Raw materials	$	63,865	$	68,088
Finished goods	141,584		153,361
	$	205,449	$	221,449

PROPERTY AND EQUIPMENT, Net

9 Months Ended

Sep. 30, 2014

PROPERTY AND EQUIPMENT, Net

PROPERTY AND EQUIPMENT, Net

8. PROPERTY AND EQUIPMENT, Net

Property and equipment consist of the following at:

	September 30, 2014		December 31, 2013
Land	$	5,382	$	5,382
Leasehold improvements	2,791		2,222
Furniture and fixtures	3,451		3,474
Office and computer equipment	14,899		14,135
Computer software	563		791
Equipment	73,614		62,552
Buildings	38,382		33,468
Vehicles	29,351		30,442
	168,433		152,466
Less: accumulated depreciation and amortization	(79,946)		(64,323)
	$	88,487	$	88,143

INTANGIBLES, Net

9 Months Ended

Sep. 30, 2014

INTANGIBLES, Net

INTANGIBLES, Net

9. INTANGIBLES, Net

Intangibles consist of the following at:

	September 30, 2014		December 31, 2013
Amortizing intangibles	$	232	$	1,076
Accumulated amortization	(50)		(590)
	182		486
Non-amortizing intangibles	48,918		65,288
	$	49,100	$	65,774

All amortizing intangibles have been assigned an estimated useful life and such intangibles are amortized on a straight-line basis over the number of years that approximate their respective useful lives ranging from one to 25 years (weighted-average life of 16 years). Amortization expense was $ 0.1 million and $0.01 million for the three-months ended September 30, 2014 and 2013, respectively. Amortization expense was $0.4 million and $0.04 million for the nine-months ended September 30, 2014 and 2013, respectively. At September 30, 2014, $18.0 million of non-amortizing intangibles and $0.1 million of amortizing intangibles (net of accumulated amortization) are subject to divestiture under the Coca-Cola Transaction and are included in intangibles held-for-sale in the accompanying condensed consolidated balance sheet at September 30, 2014.

DISTRIBUTION AGREEMENTS	9 Months Ended
DISTRIBUTION AGREEMENTS	Sep. 30, 2014
DISTRIBUTION AGREEMENTS
DISTRIBUTION AGREEMENTS	10. DISTRIBUTION AGREEMENTS Amounts received pursuant to new and/or amended distribution agreements entered into with certain distributors, relating to the costs associated with terminating agreements with the Company’s prior distributors, have been accounted for as deferred revenue in the accompanying condensed consolidated balance sheets and are recognized as revenue ratably over the anticipated life of the respective distribution agreement, generally 20 years. Revenue recognized was $1.9 million and $2.0 million for the three-months ended September 30, 2014 and 2013, respectively. Revenue recognized was $5.8 million and $6.4 million for the nine-months ended September 30, 2014 and 2013, respectively. The Company incurred termination amounts (net of adjustments to estimated amounts previously accrued) to certain of its prior distributors amounting to a credit of ($0.7) million and an expense of $0.4 million in aggregate for the three-months ended September 30, 2014 and 2013, respectively. The Company incurred termination amounts (net of adjustments to estimated amounts previously accrued) to certain of its prior distributors amounting to a credit of ($0.2) million and an expense of $10.7 million in aggregate for the nine-months ended September 30, 2014 and 2013, respectively. Such termination amounts have been expensed in full and are included in operating expenses for the three- and nine-months ended September 30, 2014 and 2013.

COMMITMENTS AND CONTINGENCIES	9 Months Ended
COMMITMENTS AND CONTINGENCIES	Sep. 30, 2014
COMMITMENTS AND CONTINGENCIES
COMMITMENTS AND CONTINGENCIES	11. COMMITMENTS AND CONTINGENCIES The Company had purchase commitments aggregating approximately $37.0 million at September 30, 2014, 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 $70.6 million at September 30, 2014, which related primarily to sponsorships and other marketing activities. The Company had operating lease commitments aggregating approximately $13.3 million at September 30, 2014, which related primarily to warehouse and office space. Legal Proceedings On October 17, 2012, Wendy Crossland and Richard Fournier filed a lawsuit in the Superior Court of the State of California, County of Riverside, styled Wendy Crossland and Richard Fournier v. Monster Beverage Corporation, against the Company claiming that the death of their 14 year old daughter (Anais Fournier) was caused by her consumption of two 24-ounce Monster Energy® drinks over the course of two days in December 2011. The plaintiffs allege strict product liability, negligence, fraudulent concealment, breach of implied warranties and wrongful death. The plaintiffs claim general damages in excess of $25,000 and punitive damages. The Company filed a demurrer and a motion to strike the plaintiffs’ complaint on November 19, 2012, and the plaintiffs filed a first amended complaint on December 19, 2012. The Company filed its answer to the first amended complaint on June 7, 2013. The parties attended a court ordered mediation on January 23, 2014. Discovery has commenced and trial has been scheduled for August 21, 2015. The Company believes that the plaintiffs’ complaint is without merit and plans a vigorous defense. The Company also believes that any such damages, if awarded, would not have a material adverse effect on the Company’s financial position or results of operations. The Company has also been named as a defendant in other complaints containing similar allegations to those presented in the Fournier lawsuit, each of which the Company believes is also without merit and would not have a material adverse effect on the Company’s financial position or results of operations in the event any damages were awarded. Securities Litigation – On September 11, 2008, a federal securities class action complaint styled Cunha v. Hansen Natural Corp., et al. was filed in the United States District Court for the Central District of California (the “District Court”). On September 17, 2008, a second federal securities class action complaint styled Brown v. Hansen Natural Corp., et al. was also filed in the District Court. After the District Court consolidated the two actions and appointed the Structural Ironworkers Local Union #1 Pension Fund as lead plaintiff, a Consolidated Complaint for Violations of Federal Securities Laws was filed on August 28, 2009 (the “Consolidated Class Action Complaint”). The Consolidated Class Action Complaint purported to be brought on behalf of a class of purchasers of the Company’s stock during the period November 9, 2006 through November 8, 2007 (the “Class Period”). It named as defendants the Company, Rodney C. Sacks, Hilton H. Schlosberg, and Thomas J. Kelly. Plaintiff principally alleged that, during the Class Period, the defendants made false and misleading statements relating to the Company’s distribution coordination agreements with Anheuser-Busch, Inc. (“AB”) and its sales of “Allied” energy drink lines, and engaged in sales of shares in the Company on the basis of material non-public information. Plaintiff also alleged that the Company’s financial statements for the second quarter of 2007 did not include certain promotional expenses. The Consolidated Class Action Complaint alleged violations of Sections 10(b) and 20(a) of the Securities Exchange Act of 1934, as amended (the “Exchange Act”) and Rule 10b-5 promulgated thereunder, and sought an unspecified amount of damages. The District Court dismissed the Consolidated Class Action Complaint, with leave to amend, on July 12, 2010. Plaintiff thereafter filed a Consolidated Amended Class Action Complaint for Violations of Federal Securities Laws on August 27, 2010 (the “Amended Class Action Complaint”). While similar in many respects to the Consolidated Class Action Complaint, the Amended Class Action Complaint dropped certain of the allegations set forth in the Consolidated Class Action Complaint and made certain new allegations, including that the Company engaged in “channel stuffing” during the Class Period that rendered false or misleading the Company’s reported sales results and certain other statements made by the defendants. In addition, it no longer named Thomas J. Kelly as a defendant. On September 4, 2012, the District Court dismissed certain of the claims in the Amended Class Action Complaint, including plaintiff’s allegations relating to promotional expenses, but denied defendants’ motion to dismiss with regard to the majority of plaintiff’s claims, including plaintiff’s channel stuffing allegations. Plaintiff filed a motion seeking class certification on December 6, 2012, which the court denied, without prejudice, on January 17, 2014. Following a mediation conducted by an independent mediator, the Company entered into a Stipulation of Settlement on April 16, 2014 that, if approved by the District Court, will resolve the litigation and result in the action being dismissed with prejudice. The Court granted preliminary approval of the settlement by an Order dated July 28, 2014. Plaintiff filed a motion seeking final approval of the settlement on September 29, 2014. Under the schedule previously entered by the Court, settlement class members have until December 1, 2014 to object to or opt-out of the settlement. The final approval hearing is scheduled for January 29, 2015. Under the terms of the proposed settlement, the Company has agreed that certain of its insurance carriers will pay $16.25 million into an escrow account for distribution to a proposed settlement class, certified by the District Court for settlement purposes only and consisting of all persons who purchased or otherwise acquired the Company’s stock during the Class Period. Excluded from the proposed settlement class are the Company’s officers and directors, members of their immediate families and their legal representatives, heirs, successors or assigns and any entity in which defendants have or had a controlling interest, as well as any putative member of the settlement class who submits a valid and timely request for exclusion in the manner ultimately approved by the District Court. Under the proposed settlement, defendants and various of their related persons and entities will receive a full release of all claims that were or could have been brought in the action as well as all claims that arise out of, are based upon or relate to the allegations, transactions, facts, representations, omissions or other matters involved in the complaints filed in the action or any statement communicated to the public during the Class Period, and the purchase, acquisition or sale of the Company’s stock during the Class Period. The proposed settlement contains no admission of any liability or wrongdoing on the part of the defendants, each of whom continues to deny all of the allegations against them and believes that the claims are without merit. Because the full amount of the proposed settlement will be paid by the Company’s insurance carriers, the settlement will not have an effect on the Company’s results of operations. State Attorney General Inquiry – In July 2012, the Company received a subpoena from the Attorney General for the State of New York in connection with its investigation concerning the Company’s advertising, marketing, promotion, ingredients, usage and sale of its Monster Energy® brand of energy drinks. Production of documents pursuant to that subpoena was completed in approximately May 2014. On August 6, 2014, the Attorney General for the State of New York issued a second subpoena seeking additional documents and the deposition of a Company employee. On September 8, 2014, the Company moved to quash the second subpoena. Briefing on the motion is currently ongoing. It is unknown what, if any, action the state attorney general may take against the Company, the relief which may be sought in the event of any such proceeding or whether such proceeding could have a material adverse effect on the Company’s business, financial condition or results of operations. San Francisco City Attorney Litigation. On October 31, 2012, the Company received a written request for information from the City Attorney for the City and County of San Francisco concerning the Company’s advertising and marketing of its Monster Energy® brand of energy drinks and specifically concerning the safety of its products for consumption by adolescents. In a letter dated March 29, 2013, the San Francisco City Attorney threatened to bring suit against the Company if it did not agree to take the following five steps immediately: (i) “Reformulate its products to lower the caffeine content to safe levels”; (ii) “Provide adequate warning labels”; (iii) “Cease promoting over-consumption in marketing”; (iv) “Cease use of alcohol and drug references in marketing”; and (v) “Cease targeting minors.” (i) The Company Action - On April 29, 2013, the Company and its wholly owned subsidiary, Monster Energy Company, filed a complaint for declaratory and injunctive relief against the San Francisco City Attorney (the “Company Action”) in United States District Court for the Central District of California (the “Central District Court”), styled Monster Beverage Corp., et al. v. Dennis Herrera. The Company seeks a declaration from the Central District Court that the San Francisco City Attorney’s investigation and demands are impermissible and preempted, subject to the doctrine of primary jurisdiction, are unconstitutional in that they violate the First and Fourteenth Amendments’ prohibitions against compelled speech, content-based speech and commercial speech, are impermissibly void-for-vagueness, and/or violate the Commerce Clause. On June 3, 2013, the City Attorney filed a motion to dismiss the Company Action, arguing in part that the complaint should be dismissed in light of the San Francisco Action (described below) filed on May 6, 2013. On August 22, 2013, the Central District Court granted in part and denied in part the City Attorney’s motion. On October 17, 2013 (after the San Francisco Action, described below, was remanded to San Francisco Superior Court), the City Attorney filed a renewed motion to dismiss the Company Action and on December 16, 2013, the Central District Court granted the City Attorney’s renewed motion, dismissing the Company Action. The Company filed a Notice of Appeal to the Ninth Circuit on December 18, 2013. The Company’s opening brief is due on November 28, 2014. (ii) The San Francisco Action - On May 6, 2013, the San Francisco City Attorney filed a complaint for declaratory and injunctive relief, civil penalties and restitution for alleged violation of California’s Unfair Competition Law, Business & Professions Code sections 17200, et seq., styled People Of The State Of California ex rel. Dennis Herrera, San Francisco City Attorney v. Monster Beverage Corporation, in San Francisco Superior Court (the “San Francisco Action”). The City Attorney alleges that the Company (1) mislabeled its products as a dietary supplement, in violation of California’s Sherman Food, Drug and Cosmetic Law, California Health & Safety Code sections 109875 et. seq.; (2) is selling an “adulterated” product because caffeine is not generally recognized as safe (“GRAS”) due to the alleged lack of scientific consensus concerning the safety of the levels of caffeine in the Company’s products; and (3) is engaged in unfair and misleading business practices because its marketing (a) does not disclose the health risks that energy drinks pose for children and teens; (b) fails to warn against and promotes unsafe consumption; (c) implicitly promotes mixing of energy drinks with alcohol or drugs; and (d) is deceptive because it includes unsubstantiated claims about the purported special benefits of its “killer” ingredients and “energy blend.” The City Attorney seeks a declaration that the Company has engaged in unfair and unlawful business acts and practices in violation of the Unfair Competition Law; an injunction from performing or proposing to perform any acts in violation of the Unfair Competition Law; restitution; and civil penalties. On June 3, 2013, the Company removed the San Francisco Action to the United States District Court for the Northern District of California (the “Northern District Court”). On July 3, 2013, the City Attorney filed a motion to remand the San Francisco Action back to state court. On September 18, 2013, the Northern District Court granted the City Attorney’s motion to remand the San Francisco Action back to state court. On January 15, 2014, the Company filed a demurrer to and motion to strike allegations in the complaint in the San Francisco Action. On March 5, 2014, the Court overruled the demurrer, granted the motion to strike as to one theory for relief pleaded by the City Attorney, and lifted the stay on discovery. On March 20, 2014, the City Attorney filed an amended complaint, adding allegations supporting the theory for relief as to which the Court had granted the motion to strike. On April 18, 2014, the Company filed a renewed motion to strike, challenging the theory for relief previously rejected by the Court, as well as a motion asking the Court to bifurcate and/or stay claims relating to the safety of Monster Energy® drinks, pending resolution of the ongoing FDA investigation of the safety and labeling of food products to which caffeine is added. On May 22, 2014, the Court denied the Company’s motion to strike and motion to bifurcate and/or stay claims relating to safety. On June 16, 2014, the Company filed a petition for writ of mandate with the Court of Appeal, asking for a writ directing the trial court to vacate its order denying the Company’s motion to bifurcate and/or stay the San Francisco Action, and instead to stay proceedings pending FDA’s investigation. On June 19, 2014, the Court of Appeal denied the petition. On June 25, 2014, the Company filed a petition for review with the California Supreme Court. On July 23, 2014, the Supreme Court denied the petition. On August 27, 2014, the Court issued an order setting the case for a two-week bench trial beginning on February 8, 2016. On September 5, 2014, the City Attorney filed a second amended complaint, adding Monster Energy Company as a defendant. A case management conference is scheduled for December 5, 2014. Discovery is ongoing. The Company denies that it has violated the Unfair Competition Law or any other law and believes that the City Attorney’s claims and demands are preempted and unconstitutional, as alleged in the action the Company filed in the Central District Court. The Company intends to vigorously defend against this lawsuit. At this time, no evaluation of the likelihood of an unfavorable outcome or range of potential loss can be expressed. In addition to the above matters, the Company has been named as a defendant in various false advertising putative class actions and in a private attorney general action. In these actions, plaintiffs allege that defendants misleadingly labeled and advertised Monster Energy® brand products that allegedly were ineffective for the advertised benefits (including, but not limited to, an allegation that the products do not hydrate as advertised because they contain caffeine). The plaintiffs further allege that the Monster Energy® brand products at issue are unsafe because they contain one or more ingredients that allegedly could result in illness, injury or death. In connection with these product safety allegations, the plaintiffs claim that the product labels did not provide adequate warnings and/or that the Company did not include sufficiently specific statements with respect to contra-indications and/or adverse reactions associated with the consumption of its energy drink products (including, but not limited to, claims that certain ingredients, when consumed individually or in combination with other ingredients, could result in high blood pressure, palpitations, liver damage or other negative health effects and/or that the products themselves are unsafe). Based on these allegations, the plaintiffs assert claims for violation of state consumer protection statutes, including unfair competition and false advertising statutes, and for breach of warranty and unjust enrichment. In their prayers for relief, the plaintiffs seek, inter alia, compensatory and punitive damages, restitution, attorneys’ fees, and, in some cases, injunctive relief. The Company regards these cases and allegations as having no merit. Furthermore, the Company is subject to litigation from time to time in the normal course of business, including intellectual property litigation and claims from terminated distributors. The Company evaluates, on a quarterly basis, developments in legal proceedings and other matters that could cause an increase or decrease in the amount of the liability that is accrued, if any, or in the amount of any related insurance reimbursements recorded. As of September 30, 2014 and December 31, 2013, the Company’s consolidated balance sheets include accrued loss contingencies of approximately $17.95 million and $17.0 million, respectively, and receivables for insurance reimbursements of approximately $16.25 million and $16.25 million, respectively. Although it is not possible to predict the ultimate outcome of such litigation, based on the facts known to the Company, management believes that such litigation in the aggregate will likely not have a material adverse effect on the Company’s financial position or results of operations.

ACCUMULATED OTHER COMPREHENSIVE LOSS

9 Months Ended

Sep. 30, 2014

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 nine-months ended September 30, 2014 are as follows:

	Currency Translation Losses

Balance at December 31, 2013	$	(1,233	)
Other comprehensive loss before reclassifications	(5,104		)
Amounts reclassified from accumulated other comprehensive loss	-
Net current-period other comprehensive loss	(5,104		)
Balance at September 30, 2014	$	(6,337	)

- Definition

The entire disclosure for comprehensive income, which includes, but is not limited to, 1) the amount of income tax expense or benefit allocated to each component of other comprehensive income, including reclassification adjustments, 2) the reclassification adjustments for each classification of other comprehensive income and 3) the ending accumulated balances for each component of comprehensive income.

+ References

Reference 1: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 220
-SubTopic 10
-Section 45
-Paragraph 15
-URI http://asc.fasb.org/extlink&oid=36458714&loc=d3e689-108580

Reference 2: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 220
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-Section 45
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Reference 3: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
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-Publisher FASB
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-Subparagraph (SX 210.3-04)
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Reference 9: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Glossary Reclassification Adjustments
-URI http://asc.fasb.org/extlink&oid=6522872

+ Details

TREASURY STOCK PURCHASE	9 Months Ended
TREASURY STOCK PURCHASE	Sep. 30, 2014
TREASURY STOCK PURCHASE
TREASURY STOCK PURCHASE	13. TREASURY STOCK PURCHASE On April 7, 2013, the Company’s Board of Directors authorized a new share repurchase program for the repurchase of up to $200.0 million of the Company’s outstanding common stock (the “April 2013 Repurchase Plan”). During the nine-months ended September 30, 2014, no shares of common stock were purchased under the April 2013 Repurchase Plan. During the year ended December 31, 2013, the Company purchased 0.951 million shares of common stock at an average purchase price of $56.98 per share for a total amount of $54.2 million (excluding broker commissions) under the April 2013 Repurchase Plan. During both the three- and nine-months ended September 30, 2014, 0.09 million shares were purchased from employees in lieu of cash payments for options exercised or withholding taxes due for a total amount of $8.1 million. While such purchases are considered common stock repurchases, they are not counted as purchases against the Company’s authorized share repurchase programs, including the April 2013 Repurchase Plan.

STOCK-BASED COMPENSATION

9 Months Ended

Sep. 30, 2014

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 September 30, 2014: the Monster Beverage Corporation 2011 Omnibus Incentive Plan (the “2011 Omnibus Incentive Plan”) and the 2009 Monster Beverage Corporation Stock Incentive Plan for Non-Employee Directors (the “2009 Directors Plan”).

The Company recorded $7.4 million and $7.2 million of compensation expense relating to outstanding options, restricted stock awards, stock appreciation rights and restricted stock units during the three-months ended September 30, 2014 and 2013, respectively. The Company recorded $22.5 million and $21.6 million of compensation expense relating to outstanding options, restricted stock awards, stock appreciation rights and restricted stock units during the nine-months ended September 30, 2014 and 2013, respectively.

The excess tax benefit realized for tax deductions from non-qualified stock option exercises, disqualifying dispositions of incentive stock options, vesting of restricted stock units and restricted stock awards for the three-months ended September 30, 2014 and 2013 was $8.2 million and $1.4 million, respectively. The excess tax benefit realized for tax deductions from non-qualified stock option exercises, disqualifying dispositions of incentive stock options, vesting of restricted stock units and restricted stock awards for the nine-months ended September 30, 2014 and 2013 was $11.5 million and $30.2 million, respectively.

Stock Options

Under the Company’s stock-based compensation plans, all stock options granted as of September 30, 2014 were granted at prices based on the fair value of the Company’s common stock on the date of grant. The Company records compensation expense for employee stock options based on the estimated fair value of the options on the date of grant using the Black-Scholes-Merton option pricing formula with the assumptions included in the table below. The Company records compensation expense for non-employee stock options based on the estimated fair value of the options as of the earlier of (1) the date at which a commitment for performance by the non-employee to earn the stock option is reached or (2) the date at which the non-employee’s performance is complete, using the Black-Scholes-Merton option pricing formula with the assumptions included in the table below. The Company uses historical data to determine the exercise behavior, volatility and forfeiture rate of the options.

The following weighted-average assumptions were used to estimate the fair value of options granted during:

	Three-Months Ended September 30,		Nine-Months Ended September 30,
	2014¹	2013¹	2014	2013
Dividend yield	-	-	0.0 %	0.0 %
Expected volatility	-	-	42.4 %	47.9 %
Risk-free interest rate	-	-	1.6 %	0.9 %
Expected term	-	-	5.8 Years	5.7 Years

1 No options were granted during the three-months ended September 30, 2014 and 2013.

Expected Volatility: The Company uses historical volatility as it provides a reasonable estimate of the expected volatility. Historical volatility is based on the most recent volatility of the stock price over a period of time equivalent to the expected term of the option.

Risk-Free Interest Rate: The risk-free interest rate is based on the U.S. Treasury zero coupon yield curve in effect at the time of grant for the expected term of the option.

Expected Term: The Company’s expected term represents the weighted-average period that the Company’s stock options are expected to be outstanding. The expected term is based on expected time to post-vesting exercise of options by employees. The Company uses historical exercise patterns of previously granted options to derive employee behavioral patterns used to forecast expected exercise patterns.

The following table summarizes the Company’s activities with respect to its stock option plans as follows:

				Weighted-
		Weighted-		Average
		Average		Remaining
	Number of	Exercise		Contractual
Options	Shares (In thousands)	Price Per Share		Term (In years)	Aggregate Intrinsic Value
Outstanding at January 1, 2014	12,973	$	15.70	3.7	$	675,595
Granted 01/01/14 - 03/31/14	689	$	70.06
Granted 04/01/14 - 06/30/14	104	$	69.15
Granted 07/01/14 - 09/30/14	-	$	-
Exercised	(686)	$	21.95
Cancelled or forfeited	(106)	$	45.32
Outstanding at September 30, 2014	12,974	$	18.44	3.3	$	950,080
Vested and expected to vest in the future at September 30, 2014	12,574	$	17.22	3.0	$	936,106
Exercisable at September 30, 2014	10,215	$	9.90	2.0	$	835,288

No option awards were granted during the three-months ended September 30, 2014 and 2013. The weighted-average grant-date fair value of options granted during the nine-months ended September 30, 2014 and 2013 was $29.33 per share and $22.44 per share, respectively. The total intrinsic value of options exercised during the three-months ended September 30, 2014 and 2013 was $25.4 million and $3.3 million, respectively. The total intrinsic value of options exercised during the nine-months ended September 30, 2014 and 2013 was $40.4 million and $87.6 million, respectively.

Cash received from option exercises under all plans for the three-months ended September 30, 2014 and 2013 was approximately $7.3 million and $1.9 million, respectively. Cash received from option exercises under all plans for the nine-months ended September 30, 2014 and 2013 was approximately $15.0 million and $18.2 million, respectively.

At September 30, 2014, there was $46.2 million of total unrecognized compensation expense related to non-vested options granted to employees under the Company’s share-based payment plans. That cost is expected to be recognized over a weighted-average period of 2.5 years.

Restricted Stock Awards and Restricted Stock Units

Stock-based compensation cost for restricted stock awards and restricted stock units is measured based on the closing fair market value of the Company’s common stock at the date of grant. In the event that the Company has the option and intent to settle a restricted stock unit in cash, the award is classified as a liability and revalued at each balance sheet date.

The following table summarizes the Company’s activities with respect to non-vested restricted stock awards and non-vested restricted stock units as follows:

		Weighted
	Number of	Average
	Shares (in	Grant-Date
	thousands)	Fair Value
Non-vested at January 1, 2014	391	$	49.27
Granted 01/01/14 - 03/31/14	-	$	-
Granted 04/01/14 - 06/30/14	10	$	69.00
Granted 07/01/14 - 09/30/14	-	$	-
Vested	(237)	$	44.11
Forfeited/cancelled	(13)	$	51.15
Non-vested at September 30, 2014	151	$	58.56

No restricted stock awards or restricted stock units were granted during the three-months ended September 30, 2014 and 2013. The weighted-average grant-date fair value of restricted stock units and restricted stock awards granted during the nine-months ended September 30, 2014 and 2013 was $69.00 and $53.25 per share, respectively. As of September 30, 2014, 0.1 million of restricted stock units and restricted stock awards are expected to vest over their respective terms.

At September 30, 2014, total unrecognized compensation expense relating to non-vested restricted stock awards and non-vested restricted stock units was $6.5 million, which is expected to be recognized over a weighted-average period of 2.4 years.

INCOME TAXES

9 Months Ended

Sep. 30, 2014

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 nine-months ended September 30, 2014:

	Gross Unrecognized Tax Benefits
Balance at December 31, 2013	$	935
Additions for tax positions related to the current year	-
Additions for tax positions related to the prior year	-
Decreases related to settlement with taxing authority	-
Balance at September 30, 2014	$	935

The Company recognizes accrued interest and penalties related to unrecognized tax benefits in the provision for income taxes in the Company’s condensed consolidated financial statements. As of September 30, 2014, the Company had accrued approximately $0.4 million in interest and penalties related to unrecognized tax benefits. If the Company were to prevail on all uncertain tax positions, the resultant impact on the Company’s effective tax rate would not be significant. It is expected that the change in the amount of unrecognized tax benefits within the next 12 months will not be significant.

The Company is subject to U.S. federal income tax as well as to income tax in multiple state and foreign jurisdictions.

On March 8, 2013, the Internal Revenue Service (“IRS”) began its examination of the Company’s U.S. federal income tax returns for the years ended December 31, 2010 and 2011. The Company is also in various stages of examination with certain states. The 2012 and 2013 U.S. federal income tax returns are subject to IRS examination. State income tax returns are subject to examination for the 2010 through 2013 tax years.

EARNINGS PER SHARE

9 Months Ended

Sep. 30, 2014

EARNINGS PER SHARE

EARNINGS PER SHARE

16. EARNINGS PER SHARE

A reconciliation of the weighted-average shares used in the basic and diluted earnings per common share computations is presented below:

	Three-Months Ended		Nine-Months Ended
	September 30,		September 30,
	2014	2013	2014	2013
Weighted-average shares outstanding:
Basic	167,346	167,457	167,116	166,483
Dilutive securities	6,924	6,491	6,900	6,861
Diluted	174,270	173,948	174,016	173,344

For the three-months ended September 30, 2014 and 2013, options and awards outstanding totaling 0.8 million shares and 1.5 million shares, respectively, were excluded from the calculations as their effect would have been antidilutive. For the nine-months ended September 30, 2014 and 2013, options and awards outstanding totaling 0.8 million shares and 1.2 million shares, respectively, were excluded from the calculations as their effect would have been antidilutive.

SEGMENT INFORMATION

9 Months Ended

Sep. 30, 2014

SEGMENT INFORMATION

SEGMENT INFORMATION

17. SEGMENT INFORMATION

The Company has two operating and reportable segments, namely Direct Store Delivery (“DSD”), whose principal products comprise energy drinks, and Warehouse (“Warehouse”), whose principal products comprise juice-based and soda beverages. The DSD segment develops, markets and sells products primarily through an exclusive distributor network, whereas the Warehouse segment develops, markets and sells products primarily direct to retailers. Corporate and unallocated amounts that do not relate to DSD or Warehouse segments have been allocated to “Corporate & Unallocated.”

The net revenues derived from the DSD and Warehouse segments and other financial information related thereto are as follows:

	Three-Months Ended September 30, 2014
	DSD		Warehouse		Corporate and Unallocated		Total
Net sales	$	609,938	$	26,034	$	-	$	635,972
Contribution margin*	232,666		604		-		233,270
Corporate and unallocated expenses	-		-		(43,363)		(43,363)
Operating income							189,907
Other income (expense)	231		-		(1,269)		(1,038)
Income before provision for income taxes							188,869
Depreciation and amortization	(4,626)		(85)		(1,419)		(6,130)

	Three-Months Ended September 30, 2013
	DSD		Warehouse		Corporate and Unallocated		Total
Net sales	$	566,768	$	23,654	$	-	$	590,422
Contribution margin*	194,915		(2,193)		-		192,722
Corporate and unallocated expenses	-		-		(41,293)		(41,293)
Operating income							151,429
Other income (expense)	180		-		(886)		(706)
Income before provision for income taxes							150,723
Depreciation and amortization	(5,069)		(78)		(961)		(6,108)

*Contribution margin is defined as gross profit less certain operating expenses deemed by management to be directly attributable to the respective reportable segment. Contribution margin is used by management as a key indicator of reportable segment profitability.

Revenue is derived from sales to external customers. Operating expenses that pertain to each segment are allocated to the appropriate segment.

Corporate and unallocated expenses were $43.4 million for the three-months ended September 30, 2014 and included $21.9 million of payroll costs, of which $7.4 million was attributable to stock-based compensation expense (see Note 14, “Stock-Based Compensation”), $12.7 million of professional service expenses, including accounting and legal costs and $8.8 million of other operating expenses. Corporate and unallocated expenses were $41.3 million for the three-months ended September 30, 2013 and included $19.8 million of payroll costs, of which $7.2 million was attributable to stock-based compensation expense (see Note 14, “Stock-Based Compensation”), $10.9 million attributable to professional service expenses, including accounting and legal costs, and $10.6 million attributable to other operating expenses.

Coca-Cola Refreshments USA Inc. (“CCR”), a customer of the DSD segment, accounted for approximately 28% and 29% of the Company’s net sales for the three-months ended September 30, 2014 and 2013, respectively.

Net sales to customers outside the United States amounted to $136.3 million and $121.1 million for the three-months ended September 30, 2014 and 2013, respectively.

The net revenues derived from the DSD and Warehouse segments and other financial information related thereto are as follows:

	Nine-Months Ended September 30, 2014
	DSD		Warehouse		Corporate and Unallocated		Total
Net sales	$	1,784,398	$	74,903	$	-	$	1,859,301
Contribution margin*	675,281		2,221		-		677,502
Corporate and unallocated expenses	-		-		(122,918)		(122,918)
Operating income							554,584
Other income (expense)	529		(1)		(1,235)		(707)
Income before provision for income taxes							553,877
Depreciation and amortization	(14,588)		(248)		(4,288)		(19,124)

	Nine-Months Ended September 30, 2013
	DSD		Warehouse		Corporate and Unallocated		Total
Net sales	$	1,627,936	$	77,643	$	-	$	1,705,579
Contribution margin*	548,906		(682)		-		548,224
Corporate and unallocated expenses	-		-		(110,064)		(110,064)
Operating income							438,160
Other income (expense)	468		(1)		(6,476)		(6,009)
Income before provision for income taxes							432,151
Depreciation and amortization	(14,091)		(201)		(2,152)		(16,444)

Revenue is derived from sales to external customers. Operating expenses that pertain to each segment are allocated to the appropriate segment.

Corporate and unallocated expenses were $122.9 million for the nine-months ended September 30, 2014 and included $64.6 million of payroll costs, of which $22.5 million was attributable to stock-based compensation expense (see Note 14, “Stock-Based Compensation”), $33.9 million of professional service expenses, including accounting and legal costs and $24.4 million of other operating expenses. Corporate and unallocated expenses were $110.1 million for the nine-months ended September 30, 2013 and included $60.6 million of payroll costs, of which $21.6 million was attributable to stock-based compensation expense (see Note 14, “Stock-Based Compensation”), $27.9 million attributable to professional service expenses, including accounting and legal costs, and $21.6 million attributable to other operating expenses.

Coca-Cola Refreshments USA Inc. (“CCR”), a customer of the DSD segment, accounted for approximately 29% of the Company’s net sales for both the nine-months ended September 30, 2014 and 2013.

Net sales to customers outside the United States amounted to $400.4 million and $354.9 million for the nine-months ended September 30, 2014 and 2013, respectively.

The Company’s net sales by product line were as follows:

	Three-Months Ended				Nine-Months Ended
	September 30,				September 30,
Product Line	2014		2013		2014		2013
Energy drinks	$	591,358	$	548,109	$	1,730,602	$	1,577,034

Non-carbonated (primarily juice based beverages and Peace Tea® iced teas)	33,626		30,622		94,698		94,760
Carbonated (primarily soda beverages)	7,216		8,067		22,756		22,732
Other	3,772		3,624		11,245		11,053
	$	635,972	$	590,422	$	1,859,301	$	1,705,579

- Definition

The entire disclosure for reporting segments including data and tables. Reportable segments include those that meet any of the following quantitative thresholds a) it's reported revenue, including sales to external customers and intersegment sales or transfers is 10 percent or more of the combined revenue, internal and external, of all operating segments b) the absolute amount of its reported profit or loss is 10 percent or more of the greater, in absolute amount of 1) the combined reported profit of all operating segments that did not report a loss or 2) the combined reported loss of all operating segments that did report a loss c) its assets are 10 percent or more of the combined assets of all operating segments.

+ References

Reference 1: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 34
-URI http://asc.fasb.org/extlink&oid=6534315&loc=d3e8981-108599

Reference 2: http://www.xbrl.org/2003/role/presentationRef
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Reference 3: http://www.xbrl.org/2003/role/presentationRef
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+ Details

RELATED PARTY TRANSACTIONS	9 Months Ended
RELATED PARTY TRANSACTIONS	Sep. 30, 2014
RELATED PARTY TRANSACTIONS
RELATED PARTY TRANSACTIONS	18. RELATED PARTY TRANSACTIONS Two directors and officers of the Company and their families are principal owners of a company that provides promotional materials to the Company. Expenses incurred with such company in connection with promotional materials purchased during the three-months ended September 30, 2014 and 2013 were $0.3 million and $0.1 million, respectively. Expenses incurred with such company in connection with promotional materials purchased during the nine-months ended September 30, 2014 and 2013 were $0.5 million and $0.4 million, respectively.

- Definition

The entire disclosure for related party transactions. Examples of related party transactions include transactions between (a) a parent company and its subsidiary; (b) subsidiaries of a common parent; (c) and entity and its principal owners; and (d) affiliates.

+ References + Details

INVESTMENTS (Tables)

9 Months Ended

Sep. 30, 2014

INVESTMENTS

Summary of investments in held-to-maturity, available-for-sale and trading securities

September 30, 2014	Amortized Cost		Gross Unrealized Holding Gains		Gross Unrealized Holding Losses		Fair Value		Continuous Unrealized Loss Position less than 12 Months		Continuous Unrealized Loss Position greater than 12 Months
Held-to-Maturity
Short-term:
Certificates of deposit	$	2,504	$	-	$	-	$	2,504	$	-	$	-
Commercial paper	1,000		-		-		1,000		-		-
Municipal securities	579,695		123		-		579,818		-		-
Long-term:
Municipal securities	28,419		4		-		28,423		-		-
Total	$	611,618	$	127	$	-	611,745		$	-	$	-
Trading
Short-term:
Auction rate securities							4,842
Long-term:
Auction rate securities							-
Total							$	616,587

December 31, 2013	Amortized Cost		Gross Unrealized Holding Gains		Gross Unrealized Holding Losses		Fair Value		Continuous Unrealized Loss Position less than 12 Months		Continuous Unrealized Loss Position greater than 12 Months
Held-to-Maturity
Short-term:
Certificates of deposit	$	22,045	$	-	$	-	$	22,045	$	-	$	-
Commercial paper	5,991		-		-		5,991		-		-
Municipal securities	367,819		48		-		367,867		-		-
Total	$	395,855	$	48	$	-	395,903		$	-	$	-
Trading
Short-term:
Auction rate securities							6,392
Long-term:
Auction rate securities							9,792
Total							$	412,087

Schedule of net gain recognized through earnings on trading securities

	Three-Months Ended September 30,				Nine-Months Ended September 30,
	2014		2013		2014		2013
Gain on trading securities sold	$	630	$	140	$	900	$	140
Gain (loss) on trading securities held	18		71		(167)		468
Gain on trading securites	$	648	$	211	$	733	$	608

Summarizes the underlying contractual maturities of the Company's investments

	September 30, 2014				December 31, 2013

	Amortized Cost		Fair Value		Amortized Cost		Fair Value
Less than 1 year:
Certificates of deposit	$	2,504	$	2,504	$	22,045	$	22,045
Commercial paper	1,000		1,000		5,991		5,991
Municipal securities	579,695		579,818		367,819		367,867
Due 1 - 10 years:
Municipal securities	28,419		28,423		-		-
Due 11 - 20 years:
Auction rate securities	4,842		4,842		11,102		11,102
Due 21 - 30 years:
Auction rate securities	-		-		5,082		5,082
Total	$	616,460	$	616,587	$	412,039	$	412,087

FAIR VALUE OF CERTAIN FINANCIAL ASSETS AND LIABILITIES (Tables)

9 Months Ended

Sep. 30, 2014

FAIR VALUE OF CERTAIN FINANCIAL ASSETS AND LIABILITIES

Schedule of financial assets and liabilities recorded at fair value on a recurring basis

September 30, 2014	Level 1		Level 2			Level 3		Total
Cash	$	216,147	$	-		$	-	$	216,147
Money market funds	150,533		-			-		150,533
Certificates of deposit	-		2,504			-		2,504
Commercial paper	-		1,000			-		1,000
Municipal securities	-		649,757			-		649,757
Auction rate securities	-		-			4,842		4,842
Put option related to auction rate securities	-		-			320		320
Foreign currency derivatives	-		32			-		32
Total	$	366,680	$	653,293		$	5,162	$	1,025,135

Amounts included in:
Cash and cash equivalents	$	366,680	$	41,643		$	-	$	408,323
Short-term investments	-		583,199			4,842		588,041
Accounts receivable, net	-		159			-		159
Investments	-		28,419			-		28,419
Prepaid expenses and other current assets	-		-			320		320
Other assets	-		-			-		-
Accrued liabilities	-		(127		)	-		(127		)
Total	$	366,680	$	653,293		$	5,162	$	1,025,135

December 31, 2013	Level 1		Level 2			Level 3		Total
Cash	$	139,300	$	-		$	-	$	139,300
Money market funds	60,102		-			-		60,102
Certificates of deposit	-		22,045			-		22,045
Commercial paper	-		5,991			-		5,991
Municipal securities	-		379,766			-		379,766
Auction rate securities	-		-			16,184		16,184
Put option related to auction rate securities	-		-			1,092		1,092
Total	$	199,402	$	407,802		$	17,276	$	624,480

Amounts included in:
Cash and cash equivalents	$	199,402	$	11,947		$	-	$	211,349
Short-term investments	-		395,855			6,392		402,247
Investments	-		-			9,792		9,792
Prepaid expenses and other current assets	-		-			486		486
Other assets	-		-			606		606
Total	$	199,402	$	407,802		$	17,276	$	624,480

Schedule of quantitative information related to the significant unobservable inputs utilized in Level 3 recurring fair value measurements

The following table presents quantitative information related to the significant unobservable inputs utilized in the Company’s Level 3 recurring fair value measurements as of September 30, 2014.

	Valuation Technique	Unobservable Input	Range (Weighted-Average)
Auction Rate Securities:
Trading	Discounted cash flow	Maximum rate probability	0.70%-2.81% (2.33%)
		Principal returned probability	85.10%-94.30% (87.03%)
		Default probability	4.46%-12.36% (10.64%)
		Liquidity risk	3.00%-3.00% (3.00%)
		Recovery rate	60-60 (60)

Put Options	Discounted cash flow	Counterparty risk	0.43%-0.54% (0.46%)

Summary of changes in fair value of the Company's Level 3 financial assets

	Three-Months Ended September 30, 2014						Three-Months Ended September 30, 2013
	Auction Rate Securities			Put Options			Auction Rate Securities			Put Options
Opening Balance	$		12,819	$	994		$		17,762	$	1,686
Transfers into Level 3	-			-			-			-
Transfers out of Level 3	-			-			-			-
Total gains (losses) for the period:
Included in earnings	648			(674)			211			(167)
Included in other comprehensive income	-			-			-			-
Settlements	(8,625)			-			(1,250)			-
Closing Balance	$		4,842	$	320		$		16,723	$	1,519

	Nine-Months Ended September 30, 2014						Nine-Months Ended September 30, 2013
	Auction Rate Securities			Put Options			Auction Rate Securities			Put Options
Opening Balance	$	16,184		$		1,092	$	23,156		$	1,929
Transfers into Level 3	-			-			-			-
Transfers out of Level 3	-			-			-			-
Total gains (losses) for the period:
Included in earnings	732			(772)			3,091			(410)
Included in other comprehensive income	-			-			(2,483)			-
Settlements	(12,074)			-			(7,041)			-
Closing Balance	$	4,842		$		320	$	16,723		$	1,519

DERIVATIVE INSTRUMENTS AND HEDGING ACTIVITIES (Tables)

9 Months Ended

Sep. 30, 2014

DERIVATIVE INSTRUMENTS AND HEDGING ACTIVITIES

Schedule of notional amount and fair value of all outstanding foreign currency derivative instruments in the condensed consolidated balance sheets

	September 30, 2014
Derivatives not designated as hedging instruments under FASB ASC 815-20	Notional Amount		Fair Value		Balance Sheet Location

Assets:
Foreign currency exchange contracts:
Receive USD/pay AUD	$	9,170	$	2	Accounts receivable, net
Receive USD/pay JPY	15,414		39		Accounts receivable, net
Receive USD/pay ZAR	13,169		107		Accounts receivable, net
Receive USD/pay CLP	2,069		8		Accounts receivable, net
Receive USD/pay COP	2,225		3		Accounts receivable, net

Liabilities:
Foreign currency exchange contracts:
Receive EUR/pay USD	$	12,808	$	(50)	Accrued liabilities
Receive CAD/pay USD	13,444		(70)		Accrued liabilities
Receive USD/pay MXN	3,279		(7)		Accrued liabilities

Schedule of net losses on derivative instruments in the condensed consolidated statements of income

		Amount of loss recognized in income on derivatives
		Three-months ended
Derivatives not designated as hedging instruments under FASB ASC 815-20	Location of loss recognized in income on derivatives	September 30, 2014		September 30, 2013
Foreign currency exchange contracts	Interest and other income (expense), net	$	960	$	-

		Amount of loss recognized in income on derivatives
		Nine-months ended
Derivatives not designated as hedging instruments under FASB ASC 815-20	Location of loss recognized in income on derivatives	September 30, 2014		September 30, 2013
Foreign currency exchange contracts	Interest and other income (expense), net	$	194	$	-

INVENTORIES (Tables)

9 Months Ended

Sep. 30, 2014

INVENTORIES

Schedule of inventories

	September 30, 2014		December 31, 2013
Raw materials	$	63,865	$	68,088
Finished goods	141,584		153,361
	$	205,449	$	221,449

PROPERTY AND EQUIPMENT, Net (Tables)

9 Months Ended

Sep. 30, 2014

PROPERTY AND EQUIPMENT, Net

Schedule of property and equipment

	September 30, 2014		December 31, 2013
Land	$	5,382	$	5,382
Leasehold improvements	2,791		2,222
Furniture and fixtures	3,451		3,474
Office and computer equipment	14,899		14,135
Computer software	563		791
Equipment	73,614		62,552
Buildings	38,382		33,468
Vehicles	29,351		30,442
	168,433		152,466
Less: accumulated depreciation and amortization	(79,946)		(64,323)
	$	88,487	$	88,143

INTANGIBLES, Net (Tables)

9 Months Ended

Sep. 30, 2014

INTANGIBLES, Net

Schedule of intangibles

	September 30, 2014		December 31, 2013
Amortizing intangibles	$	232	$	1,076
Accumulated amortization	(50)		(590)
	182		486
Non-amortizing intangibles	48,918		65,288
	$	49,100	$	65,774

ACCUMULATED OTHER COMPREHENSIVE LOSS (Tables)

9 Months Ended

Sep. 30, 2014

ACCUMULATED OTHER COMPREHENSIVE LOSS

Changes in accumulated other comprehensive loss by component, after tax

	Currency Translation Losses

Balance at December 31, 2013	$	(1,233	)
Other comprehensive loss before reclassifications	(5,104		)
Amounts reclassified from accumulated other comprehensive loss	-
Net current-period other comprehensive loss	(5,104		)
Balance at September 30, 2014	$	(6,337	)

STOCK-BASED COMPENSATION (Tables)

9 Months Ended

Sep. 30, 2014

STOCK-BASED COMPENSATION

Schedule of weighted-average assumptions used to estimate the fair value of options granted

	Three-Months Ended September 30,		Nine-Months Ended September 30,
	2014¹	2013¹	2014	2013
Dividend yield	-	-	0.0 %	0.0 %
Expected volatility	-	-	42.4 %	47.9 %
Risk-free interest rate	-	-	1.6 %	0.9 %
Expected term	-	-	5.8 Years	5.7 Years

1 No options were granted during the three-months ended September 30, 2014 and 2013.

Summary of activities with respect to its stock option plans

				Weighted-
		Weighted-		Average
		Average		Remaining
	Number of	Exercise		Contractual
Options	Shares (In thousands)	Price Per Share		Term (In years)	Aggregate Intrinsic Value
Outstanding at January 1, 2014	12,973	$	15.70	3.7	$	675,595
Granted 01/01/14 - 03/31/14	689	$	70.06
Granted 04/01/14 - 06/30/14	104	$	69.15
Granted 07/01/14 - 09/30/14	-	$	-
Exercised	(686)	$	21.95
Cancelled or forfeited	(106)	$	45.32
Outstanding at September 30, 2014	12,974	$	18.44	3.3	$	950,080
Vested and expected to vest in the future at September 30, 2014	12,574	$	17.22	3.0	$	936,106
Exercisable at September 30, 2014	10,215	$	9.90	2.0	$	835,288

Summary of activities with respect to non-vested restricted stock awards and non-vested restricted stock units

		Weighted
	Number of	Average
	Shares (in	Grant-Date
	thousands)	Fair Value
Non-vested at January 1, 2014	391	$	49.27
Granted 01/01/14 - 03/31/14	-	$	-
Granted 04/01/14 - 06/30/14	10	$	69.00
Granted 07/01/14 - 09/30/14	-	$	-
Vested	(237)	$	44.11
Forfeited/cancelled	(13)	$	51.15
Non-vested at September 30, 2014	151	$	58.56

INCOME TAXES (Tables)

9 Months Ended

Sep. 30, 2014

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, 2013	$	935
Additions for tax positions related to the current year	-
Additions for tax positions related to the prior year	-
Decreases related to settlement with taxing authority	-
Balance at September 30, 2014	$	935

EARNINGS PER SHARE (Tables)

9 Months Ended

Sep. 30, 2014

EARNINGS PER SHARE

Schedule of reconciliation of the weighted average shares used in the basic and diluted earnings per common share computations

	Three-Months Ended		Nine-Months Ended
	September 30,		September 30,
	2014	2013	2014	2013
Weighted-average shares outstanding:
Basic	167,346	167,457	167,116	166,483
Dilutive securities	6,924	6,491	6,900	6,861
Diluted	174,270	173,948	174,016	173,344

SEGMENT INFORMATION (Tables)

9 Months Ended

Sep. 30, 2014

SEGMENT INFORMATION

Schedule of net revenues and other financial information by segment

	Three-Months Ended September 30, 2014
	DSD		Warehouse		Corporate and Unallocated		Total
Net sales	$	609,938	$	26,034	$	-	$	635,972
Contribution margin*	232,666		604		-		233,270
Corporate and unallocated expenses	-		-		(43,363)		(43,363)
Operating income							189,907
Other income (expense)	231		-		(1,269)		(1,038)
Income before provision for income taxes							188,869
Depreciation and amortization	(4,626)		(85)		(1,419)		(6,130)

	Three-Months Ended September 30, 2013
	DSD		Warehouse		Corporate and Unallocated		Total
Net sales	$	566,768	$	23,654	$	-	$	590,422
Contribution margin*	194,915		(2,193)		-		192,722
Corporate and unallocated expenses	-		-		(41,293)		(41,293)
Operating income							151,429
Other income (expense)	180		-		(886)		(706)
Income before provision for income taxes							150,723
Depreciation and amortization	(5,069)		(78)		(961)		(6,108)

	Nine-Months Ended September 30, 2014
	DSD		Warehouse		Corporate and Unallocated		Total
Net sales	$	1,784,398	$	74,903	$	-	$	1,859,301
Contribution margin*	675,281		2,221		-		677,502
Corporate and unallocated expenses	-		-		(122,918)		(122,918)
Operating income							554,584
Other income (expense)	529		(1)		(1,235)		(707)
Income before provision for income taxes							553,877
Depreciation and amortization	(14,588)		(248)		(4,288)		(19,124)

	Nine-Months Ended September 30, 2013
	DSD		Warehouse		Corporate and Unallocated		Total
Net sales	$	1,627,936	$	77,643	$	-	$	1,705,579
Contribution margin*	548,906		(682)		-		548,224
Corporate and unallocated expenses	-		-		(110,064)		(110,064)
Operating income							438,160
Other income (expense)	468		(1)		(6,476)		(6,009)
Income before provision for income taxes							432,151
Depreciation and amortization	(14,091)		(201)		(2,152)		(16,444)

Schedule of net sales by product line

	Three-Months Ended				Nine-Months Ended
	September 30,				September 30,
Product Line	2014		2013		2014		2013
Energy drinks	$	591,358	$	548,109	$	1,730,602	$	1,577,034

Non-carbonated (primarily juice based beverages and Peace Tea® iced teas)	33,626		30,622		94,698		94,760
Carbonated (primarily soda beverages)	7,216		8,067		22,756		22,732
Other	3,772		3,624		11,245		11,053
	$	635,972	$	590,422	$	1,859,301	$	1,705,579

ACQUISITIONS AND DIVESTITURES (Details) - Coca-Cola Transaction Asset Transfer Agreement - Forecast $ in Millions	Aug. 14, 2014 USD ($) item
Coca-Cola
ACQUISITIONS AND DIVESTITURES
Net cash payment \| $	$ 2,150.0
Amount held in escrow \| $	$ 625.0
NewCo
ACQUISITIONS AND DIVESTITURES
Number of shares into which each outstanding common share is converted in the merger	1
NewCo \| Coca-Cola
ACQUISITIONS AND DIVESTITURES
Ownership interest (as a percent)	16.70%
Number of individuals who can be nominated as Board of Directors by counterparty as right under agreement	2
Reduced number of individuals who can be nominated as Board of Directors by counterparty under specific conditions	1
Term in which number of individuals who can be nominated as Board of Directors by counterparty will be reduced	36 months
Minimum ownership interest held when number of individuals who can be nominated as Board of Directors by counterparty will be reduced (as a percent)	20.00%

INVESTMENTS (Details) - USD ($) $ in Thousands	Sep. 30, 2014	Dec. 31, 2013
Held to Maturity and Available-for-sale
Held to maturity and available-for-sale securities, Amortized Cost	$ 611,618	$ 395,855
Held to maturity and available-for-sale securities, Gross Unrealized Holding Gains	127	48
Held to maturity and available-for-sale securities, Fair Value	611,745	395,903
Held to Maturity, Available-for-sale, and Trading
Total Fair Value	616,587	412,087
Short-term \| Certificates of deposit
Held-to-Maturity
Amortized Cost	2,504	22,045
Fair Value	2,504	22,045
Short-term \| Commercial paper
Held-to-Maturity
Amortized Cost	1,000	5,991
Fair Value	1,000	5,991
Short-term \| Municipal securities
Held-to-Maturity
Amortized Cost	579,695	367,819
Gross Unrealized Holding Gains	123	48
Fair Value	579,818	367,867
Short-term \| Auction rate securities
Trading
Fair Value	4,842	6,392
Long-term \| Municipal securities
Held-to-Maturity
Amortized Cost	28,419
Gross Unrealized Holding Gains	4
Fair Value	$ 28,423
Long-term \| Auction rate securities
Trading
Fair Value		$ 9,792

INVESTMENTS (Details 2) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended		12 Months Ended
INVESTMENTS (Details 2) - USD ($) $ in Thousands	Sep. 30, 2014	Sep. 30, 2013	Sep. 30, 2014	Sep. 30, 2013	Dec. 31, 2013
INVESTMENTS
Realized gains on the sale of available-for-sale investments					$ 2,500
Auction rate securities
Investments
Gain on trading securities sold	$ 630	$ 140	$ 900	$ 140
Gain (loss) on trading securities held	18	71	(167)	468
Gain on trading securities	$ 648	$ 211	$ 733	$ 608

INVESTMENTS (Details 3) - USD ($) $ in Thousands	Sep. 30, 2014	Dec. 31, 2013
Disclosure of underlying contractual maturities of investments
Amortized Cost	$ 616,460	$ 412,039
Fair Value	616,587	412,087
Certificates of deposit \| Less than 1 year
Disclosure of underlying contractual maturities of investments
Amortized Cost	2,504	22,045
Fair Value	2,504	22,045
Commercial paper \| Less than 1 year
Disclosure of underlying contractual maturities of investments
Amortized Cost	1,000	5,991
Fair Value	1,000	5,991
Municipal securities \| Less than 1 year
Disclosure of underlying contractual maturities of investments
Amortized Cost	579,695	367,819
Fair Value	579,818	367,867
Municipal securities \| Due 1 - 10 years
Disclosure of underlying contractual maturities of investments
Amortized Cost	28,419
Fair Value	28,423
Auction rate securities \| Due 11 - 20 years
Disclosure of underlying contractual maturities of investments
Amortized Cost	4,842	11,102
Fair Value	$ 4,842	11,102
Auction rate securities \| Due 21 - 30 years
Disclosure of underlying contractual maturities of investments
Amortized Cost		5,082
Fair Value		$ 5,082

FAIR VALUE OF CERTAIN FINANCIAL ASSETS AND LIABILITIES (Details) - USD ($) $ in Thousands	Sep. 30, 2014	Dec. 31, 2013
Level 1
Fair value of certain assets
Cash	$ 216,147	$ 139,300
Assets measured at fair value	366,680	199,402
Level 1 \| Money market funds
Fair value of certain assets
Assets measured at fair value	150,533	60,102
Level 2
Fair value of certain assets
Assets measured at fair value	653,293	407,802
Level 2 \| Foreign currency exchange contracts
Fair value of certain assets
Foreign currency derivatives	32
Level 2 \| Certificates of deposit
Fair value of certain assets
Assets measured at fair value	2,504	22,045
Level 2 \| Commercial paper
Fair value of certain assets
Assets measured at fair value	1,000	5,991
Level 2 \| Municipal securities
Fair value of certain assets
Assets measured at fair value	649,757	379,766
Level 3
Fair value of certain assets
Assets measured at fair value	5,162	17,276
Level 3 \| Auction rate securities
Fair value of certain assets
Assets measured at fair value	4,842	16,184
Level 3 \| Put option related to auction rate securities
Fair value of certain assets
Assets measured at fair value	320	1,092
Total fair value
Fair value of certain assets
Cash	216,147	139,300
Assets measured at fair value	1,025,135	624,480
Total fair value \| Foreign currency exchange contracts
Fair value of certain assets
Foreign currency derivatives	32
Total fair value \| Money market funds
Fair value of certain assets
Assets measured at fair value	150,533	60,102
Total fair value \| Certificates of deposit
Fair value of certain assets
Assets measured at fair value	2,504	22,045
Total fair value \| Commercial paper
Fair value of certain assets
Assets measured at fair value	1,000	5,991
Total fair value \| Municipal securities
Fair value of certain assets
Assets measured at fair value	649,757	379,766
Total fair value \| Auction rate securities
Fair value of certain assets
Assets measured at fair value	4,842	16,184
Total fair value \| Put option related to auction rate securities
Fair value of certain assets
Assets measured at fair value	$ 320	$ 1,092

FAIR VALUE OF CERTAIN FINANCIAL ASSETS AND LIABILITIES (Details 2) - USD ($) $ in Thousands	9 Months Ended	12 Months Ended
	Sep. 30, 2014	Dec. 31, 2013	Sep. 30, 2013	Dec. 31, 2012
Fair value amounts included in the carrying value of
Cash and cash equivalents	$ 408,323	$ 211,349	$ 287,019	$ 222,514
Short-term investments	588,041	402,247
Investments	28,419	9,792
Asset transfers between Level 1 and Level 2 measurements	0	0
Level 1
Fair value amounts included in the carrying value of
Cash and cash equivalents	366,680	199,402
Total	366,680	199,402
Level 2
Fair value amounts included in the carrying value of
Cash and cash equivalents	41,643	11,947
Short-term investments	583,199	395,855
Accounts receivable, net	159
Investments	28,419
Accrued liabilities	(127)
Total	653,293	407,802
Level 3
Fair value amounts included in the carrying value of
Short-term investments	4,842	6,392
Investments		9,792
Prepaid expenses and other current assets	320	486
Other assets		606
Total	5,162	17,276
Total fair value
Fair value amounts included in the carrying value of
Cash and cash equivalents	408,323	211,349
Short-term investments	588,041	402,247
Accounts receivable, net	159
Investments	28,419	9,792
Prepaid expenses and other current assets	320	486
Other assets		606
Accrued liabilities	(127)
Total	$ 1,025,135	$ 624,480

FAIR VALUE OF CERTAIN FINANCIAL ASSETS AND LIABILITIES (Details 3) - Discounted cash flow - Level 3 - Assets at fair value on recurring basis	9 Months Ended
	Sep. 30, 2014
Auction Rate Securities: Trading \| Minimum
Quantitative information related to the significant unobservable inputs
Maximum rate probability (as a percent)	0.70%
Principal returned probability (as a percent)	85.10%
Default probability (as a percent)	4.46%
Liquidity risk (as a percent)	3.00%
Recovery rate (as a percent)	60.00%
Auction Rate Securities: Trading \| Maximum
Quantitative information related to the significant unobservable inputs
Maximum rate probability (as a percent)	2.81%
Principal returned probability (as a percent)	94.30%
Default probability (as a percent)	12.36%
Liquidity risk (as a percent)	3.00%
Recovery rate (as a percent)	60.00%
Auction Rate Securities: Trading \| Weighted Average
Quantitative information related to the significant unobservable inputs
Maximum rate probability (as a percent)	2.33%
Principal returned probability (as a percent)	87.03%
Default probability (as a percent)	10.64%
Liquidity risk (as a percent)	3.00%
Recovery rate (as a percent)	60.00%
Put Options \| Minimum
Quantitative information related to the significant unobservable inputs
Counterparty risk (as a percent)	0.43%
Put Options \| Maximum
Quantitative information related to the significant unobservable inputs
Counterparty risk (as a percent)	0.54%
Put Options \| Weighted Average
Quantitative information related to the significant unobservable inputs
Counterparty risk (as a percent)	0.46%

FAIR VALUE OF CERTAIN FINANCIAL ASSETS AND LIABILITIES (Details 4) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended		12 Months Ended
	Sep. 30, 2014	Sep. 30, 2013	Sep. 30, 2014	Sep. 30, 2013	Dec. 31, 2013	Dec. 31, 2012	Dec. 31, 2011	Oct. 01, 2013	Jul. 01, 2013	Jun. 30, 2011
ARS Agreement
Amortized Cost	$ 616,460		$ 616,460		$ 412,039
Auction rate securities
ARS Agreement
Face value of investments	5,200		5,200
Impairment of investments, trading securities	400		400
Amortized Cost	4,800		4,800
Trading auction rate securities, in short-term and long-term investments	4,800		4,800
2011 ARS Agreement
ARS Agreement
Amount of securities of par value										$ 24,500
Redemption of investment securities at par through normal market channels					$ 2,300	$ 1,300	$ 3,700
2011 ARS Agreement \| Subsequent event
ARS Agreement
Redemption of investment securities at par through normal market channels			1,000
Put option related to auction rate securities
ARS Agreement
Redemption of investment securities through the exercise of the put option	12,100		12,100
2011 Put Option
ARS Agreement
Fair market value of investments	300		300
Resulted (loss) gain on revaluation of investment securities included in other income (expense)	$ (30)	$ (40)	$ (40)	$ 2,700
2011 Put Option \| Maximum
ARS Agreement
Amount of securities of par value								$ 1,000	$ 1,000

FAIR VALUE OF CERTAIN FINANCIAL ASSETS AND LIABILITIES (Details 5) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2014	Sep. 30, 2013	Sep. 30, 2014	Sep. 30, 2013
Auction rate securities
Fair value of level 3 financial assets, roll forward
Balance at the beginning of the period	$ 12,819	$ 17,762	$ 16,184	$ 23,156
Total gains (losses) for the period: Included in earnings	648	211	732	3,091
Total gains (losses) for the period: Included in other comprehensive income				(2,483)
Settlements	(8,625)	(1,250)	(12,074)	(7,041)
Balance at the end of the period	4,842	16,723	4,842	16,723
Put Options
Fair value of level 3 financial assets, roll forward
Balance at the beginning of the period	994	1,686	1,092	1,929
Total gains (losses) for the period: Included in earnings	(674)	(167)	(772)	(410)
Balance at the end of the period	$ 320	$ 1,519	$ 320	$ 1,519

DERIVATIVE INSTRUMENTS AND HEDGING ACTIVITIES (Details) $ in Thousands	9 Months Ended
	Sep. 30, 2014 USD ($)	Dec. 31, 2013 item
Derivative Instruments and Hedging Activities
Number of foreign exchange contract outstanding \| item		0
Foreign currency exchange contracts \| Maximum
Derivative Instruments and Hedging Activities
Term of derivative instrument	1 month
Derivatives not designated as hedging instruments \| Receive USD/pay AUD \| Accounts receivables, net
Derivative Instruments and Hedging Activities
Notional Amount, Assets	$ 9,170
Fair Value, Assets	2
Derivatives not designated as hedging instruments \| Receive USD/pay JPY \| Accounts receivables, net
Derivative Instruments and Hedging Activities
Notional Amount, Assets	15,414
Fair Value, Assets	39
Derivatives not designated as hedging instruments \| Receive USD/pay ZAR \| Accounts receivables, net
Derivative Instruments and Hedging Activities
Notional Amount, Assets	13,169
Fair Value, Assets	107
Derivatives not designated as hedging instruments \| Receive USD/pay CLP \| Accounts receivables, net
Derivative Instruments and Hedging Activities
Notional Amount, Assets	2,069
Fair Value, Assets	8
Derivatives not designated as hedging instruments \| Receive USD/pay COP \| Accounts receivables, net
Derivative Instruments and Hedging Activities
Notional Amount, Assets	2,225
Fair Value, Assets	3
Derivatives not designated as hedging instruments \| Receive EUR/pay USD \| Accrued liabilities
Derivative Instruments and Hedging Activities
Notional Amount, Liabilities	12,808
Fair Value, Liabilities	(50)
Derivatives not designated as hedging instruments \| Receive CAD/pay USD \| Accrued liabilities
Derivative Instruments and Hedging Activities
Notional Amount, Liabilities	13,444
Fair Value, Liabilities	(70)
Derivatives not designated as hedging instruments \| Receive USD/pay MXN \| Accrued liabilities
Derivative Instruments and Hedging Activities
Notional Amount, Liabilities	3,279
Fair Value, Liabilities	$ (7)

DERIVATIVE INSTRUMENTS AND HEDGING ACTIVITIES (Details 2) - USD ($) $ in Thousands	3 Months Ended	9 Months Ended
	Sep. 30, 2014	Sep. 30, 2014
Derivatives not designated as hedging instruments \| Foreign currency exchange contracts \| Interest and other income (expense), net
Net losses on derivative instruments
Amount of loss recognized in income on derivatives	$ 960	$ 194

INVENTORIES (Details) - USD ($) $ in Thousands	Sep. 30, 2014	Dec. 31, 2013
INVENTORIES
Raw materials	$ 63,865	$ 68,088
Finished goods	141,584	153,361
Inventories, net	$ 205,449	$ 221,449

PROPERTY AND EQUIPMENT, Net (Details) - USD ($) $ in Thousands	Sep. 30, 2014	Dec. 31, 2013
Property and equipment, net
Property and equipment, gross	$ 168,433	$ 152,466
Less: accumulated depreciation and amortization	(79,946)	(64,323)
Property and equipment, net	88,487	88,143
Land
Property and equipment, net
Property and equipment, gross	5,382	5,382
Leasehold improvements
Property and equipment, net
Property and equipment, gross	2,791	2,222
Furniture and fixtures
Property and equipment, net
Property and equipment, gross	3,451	3,474
Office and computer equipment
Property and equipment, net
Property and equipment, gross	14,899	14,135
Computer software
Property and equipment, net
Property and equipment, gross	563	791
Equipment
Property and equipment, net
Property and equipment, gross	73,614	62,552
Building
Property and equipment, net
Property and equipment, gross	38,382	33,468
Vehicles
Property and equipment, net
Property and equipment, gross	$ 29,351	$ 30,442

INTANGIBLES, Net (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
INTANGIBLES, Net (Details) - USD ($) $ in Thousands	Sep. 30, 2014	Sep. 30, 2013	Sep. 30, 2014	Sep. 30, 2013	Dec. 31, 2013
Intangibles, Net
Amortizing intangibles	$ 232		$ 232		$ 1,076
Accumulated amortization	(50)		(50)		(590)
Amortizing intangibles, net	182		182		486
Non-amortizing intangibles	48,918		48,918		65,288
Intangible, net	49,100		$ 49,100		$ 65,774
Weighted-average useful life			16 years
Amortization expense	100	$ 10	$ 400	$ 40
Non-amortizing intangibles held-for-sale	18,000		18,000
Amortizing intangibles held-for-sale, Net	$ 100		$ 100
Minimum
Intangibles, Net
Weighted-average useful life			1 year
Maximum
Intangibles, Net
Weighted-average useful life			25 years

DISTRIBUTION AGREEMENTS (Details) - USD ($) $ in Millions	3 Months Ended		9 Months Ended
DISTRIBUTION AGREEMENTS (Details) - USD ($) $ in Millions	Sep. 30, 2014	Sep. 30, 2013	Sep. 30, 2014	Sep. 30, 2013
DISTRIBUTION AGREEMENTS
Distribution agreement, revenue recognition period			20 years
Revenue recognized	$ 1.9	$ 2.0	$ 5.8	$ 6.4
Termination costs of prior distributors	$ (0.7)	$ 0.4	$ (0.2)	$ 10.7

COMMITMENTS AND CONTINGENCIES (Details) $ in Millions	9 Months Ended
COMMITMENTS AND CONTINGENCIES (Details) $ in Millions	Sep. 30, 2014 USD ($)
Commitments and Contingencies
Aggregate contractual obligations	$ 70.6
Aggregate operating lease commitments	13.3
Raw material items
Commitments and Contingencies
Purchase Commitments	$ 37.0
Period over which obligations will be paid	1 year

COMMITMENTS AND CONTINGENCIES (Details 2)	Oct. 17, 2012 USD ($) oz item	Sep. 17, 2008 item	Sep. 30, 2014 USD ($)	Jun. 30, 2014 USD ($)	Dec. 31, 2013 USD ($)
Commitments and contingencies
Amount that Company has agreed to cause certain of its insurance carriers to pay into escrow account				$ 16,250,000
Accrued loss contingencies			$ 17,950,000		$ 17,000,000
Receivables for insurance reimbursements			$ 16,250,000		$ 16,250,000
Lawsuit in Superior Court by Wendy Crossland and Richard Fournier
Commitments and contingencies
Age of the plaintiff's deceased daughter	14 years
Number of 24 ounce energy drinks \| item	2
Number of ounce energy drink \| oz	24
Number of days over which the energy drink was consumed	2 days
Minimum amount of plaintiff claims for general damages	$ 25,000
Securities Litigation
Commitments and contingencies
Number of actions consolidated \| item		2

ACCUMULATED OTHER COMPREHENSIVE LOSS (Details) $ in Thousands	9 Months Ended
	Sep. 30, 2014 USD ($)
Changes in accumulated other comprehensive (loss) income by component, after tax
Balance at the beginning of the period	$ (1,233)
Balance at the end of the period	(6,337)
Currency Translation Losses
Changes in accumulated other comprehensive (loss) income by component, after tax
Balance at the beginning of the period	(1,233)
Other comprehensive loss before reclassifications	(5,104)
Net current-period other comprehensive loss	(5,104)
Balance at the end of the period	$ (6,337)

- Definition

Accumulated change in equity from transactions and other events and circumstances from non-owner sources, net of tax effect, at period end. Excludes Net Income (Loss), and accumulated changes in equity from transactions resulting from investments by owners and distributions to owners. Includes foreign currency translation items, certain pension adjustments, unrealized gains and losses on certain investments in debt and equity securities, other than temporary impairment (OTTI) losses related to factors other than credit losses on available-for-sale and held-to-maturity debt securities that an entity does not intend to sell and it is not more likely than not that the entity will be required to sell before recovery of the amortized cost basis, as well as changes in the fair value of derivatives related to the effective portion of a designated cash flow hedge.

+ References + Details

TREASURY STOCK PURCHASE (Details) - USD ($) $ / shares in Units, $ in Millions	3 Months Ended	9 Months Ended	12 Months Ended
	Sep. 30, 2014	Sep. 30, 2014	Dec. 31, 2013	Apr. 07, 2013
TREASURY STOCK PURCHASE
Number of shares repurchased of common stock from employees in lieu of cash or withholding taxes due	90,000	90,000
Cash payment for repurchase of common stock from employees in lieu of cash or withholding taxes due	$ 8.1	$ 8.1
April 2013 Repurchase Plan
TREASURY STOCK PURCHASE
Maximum amount of common stock the board of directors authorized to repurchase				$ 200.0
Common stock repurchased (in shares)		0	951,000
Average purchase price (in dollars per share)			$ 56.98
Common stock repurchased			$ 54.2

STOCK-BASED COMPENSATION (Details) $ / shares in Units, shares in Thousands, $ in Thousands	3 Months Ended				9 Months Ended		12 Months Ended
	Sep. 30, 2014 USD ($) $ / shares shares	Jun. 30, 2014 $ / shares shares	Mar. 31, 2014 USD ($) $ / shares shares	Sep. 30, 2013 USD ($) shares	Sep. 30, 2014 USD ($) plan $ / shares shares	Sep. 30, 2013 USD ($)	Dec. 31, 2013 USD ($) $ / shares shares
Stock-based compensation
Stock-based compensation plans \| plan					2
Compensation expense on share-based plans \| $	$ 7,400			$ 7,200	$ 22,500	$ 21,600
Stock options
Stock-based compensation
Excess tax benefit realized for tax deductions from non-qualified stock option exercises and disqualifying dispositions of incentive stock options \| $	$ 8,200			$ 1,400	$ 11,500	$ 30,200
Weighted-average assumptions used to estimate the fair value of options granted
Dividend yield (as a percent)					0.00%	0.00%
Expected volatility (as a percent)					42.40%	47.90%
Risk-free interest rate (as a percent)					1.60%	0.90%
Expected term					5 years 9 months 18 days	5 years 8 months 12 days
Stock Options, Number of Shares
Balance at the beginning of the period (in shares) \| shares			12,973		12,973
Granted (in shares) \| shares	0	104	689	0
Exercised (in shares) \| shares					(686)
Cancelled or forfeited (in shares) \| shares					(106)
Balance at the end of the period (in shares) \| shares	12,974				12,974		12,973
Vested and expected to vest in the future at the end of the period (in shares) \| shares	12,574				12,574
Exercisable at the end of the period (in shares) \| shares	10,215				10,215
Stock options, Weighted-Average Exercise Price Per Share
Balance at the beginning of the period (in dollars per share) \| $ / shares			$ 15.70		$ 15.70
Granted (in dollars per share) \| $ / shares		$ 69.15	$ 70.06
Exercised (in dollars per share) \| $ / shares					21.95
Cancelled or forfeited (in dollars per share) \| $ / shares					45.32
Balance at the end of the period (in dollars per share) \| $ / shares	$ 18.44				18.44		$ 15.70
Vested and expected to vest in the future at the end of the period (in dollars per share) \| $ / shares	17.22				17.22
Exercisable at the end of the period (in dollars per share) \| $ / shares	$ 9.90				$ 9.90
Weighted-Average Remaining Contractual Term
SharebasedCompensationArrangementBySharebasedPaymentAwardOptionsOutstandingWeightedAverageRemainingContractualTerm2					3 years 3 months 18 days		3 years 8 months 12 days
SharebasedCompensationArrangementBySharebasedPaymentAwardOptionsOutstandingWeightedAverageRemainingContractualTerm2					3 years 3 months 18 days		3 years 8 months 12 days
Vested and expected to vest in the future at the end of the period					3 years
Exercisable at the end of the period					2 years
Aggregate Intrinsic Value
Balance at the beginning of the period \| $			$ 675,595		$ 675,595
Balance at the end of the period \| $	$ 950,080				950,080		$ 675,595
Vested and expected to vest in the future at the end of the period \| $	936,106				936,106
Exercisable at the end of the period \| $	$ 835,288				$ 835,288

STOCK-BASED COMPENSATION (Details 2) - USD ($) $ / shares in Units, shares in Thousands, $ in Millions	3 Months Ended			9 Months Ended
	Sep. 30, 2014	Jun. 30, 2014	Sep. 30, 2013	Sep. 30, 2014	Sep. 30, 2013
Stock options
Stock-based compensation
Weighted-average grant-date fair value of options granted (in dollars per share)				$ 29.33	$ 22.44
Total intrinsic value of options exercised	$ 25.4		$ 3.3	$ 40.4	$ 87.6
Cash received from option exercises	7.3		$ 1.9	15.0	$ 18.2
Total unrecognized compensation expense related to non-vested shares granted to employees	$ 46.2			$ 46.2
Cost expected to be recognized over a weighted-average period				2 years 6 months
Stock units and stock awards expected to vest (in shares)	12,574			12,574
Restricted stock units
Stock-based compensation
Total unrecognized compensation expense related to non-vested shares granted to employees	$ 6.5			$ 6.5
Cost expected to be recognized over a weighted-average period				2 years 4 months 24 days
Stock units and stock awards expected to vest (in shares)	100			100
Number of Shares
Non-vested at the beginning of the period (in shares)				391
Granted (in shares)	0	10	0
Vested (in shares)				(237)
Forfeited/cancelled (in shares)				(13)
Non-vested at the end of the period (in shares)	151			151
Weighted Average Grant-Date Fair Value
Non-vested at the beginning of the period (in dollars per share)				$ 49.27
Granted (in dollars per share)	$ 69.00	$ 69.00		69.00	$ 53.25
Vested (in dollars per share)				44.11
Forfeited/cancelled (in dollars per share)				51.15
Non-vested at the end of the period (in dollars per share)	$ 58.56			$ 58.56

INCOME TAXES (Details) $ in Millions	Sep. 30, 2014 USD ($)
Gross unrecognized tax benefits, roll forward
Accrued interest and penalties related to unrecognized tax benefits	$ 0.4

EARNINGS PER SHARE (Details) - shares shares in Thousands	3 Months Ended		9 Months Ended
EARNINGS PER SHARE (Details) - shares shares in Thousands	Sep. 30, 2014	Sep. 30, 2013	Sep. 30, 2014	Sep. 30, 2013
Weighted-average shares outstanding:
Basic (in shares)	167,346	167,457	167,116	166,483
Dilutive securities (in shares)	6,924	6,491	6,900	6,861
Diluted (in shares)	174,270	173,948	174,016	173,344
Options and awards outstanding excluded from the calculations as their effect would have been antidilutive (in shares)	800	1,500	800	1,200

SEGMENT INFORMATION (Details) $ in Thousands	3 Months Ended		9 Months Ended
SEGMENT INFORMATION (Details) $ in Thousands	Sep. 30, 2014 USD ($)	Sep. 30, 2013 USD ($)	Sep. 30, 2014 USD ($) item	Sep. 30, 2013 USD ($)
SEGMENT INFORMATION
Number of reportable segments \| item			2
Number of operating segments \| item			2
Segment information
Net sales	$ 635,972	$ 590,422	$ 1,859,301	$ 1,705,579
Contribution margin	233,270	192,722	677,502	548,224
Corporate and unallocated expenses	(43,363)	(41,293)	(122,918)	(110,064)
Operating income	189,907	151,429	554,584	438,160
Other income (expense)	(1,038)	(706)	(707)	(6,009)
Income before provision for income taxes	188,869	150,723	553,877	432,151
Depreciation and amortization	(6,130)	(6,108)	(19,124)	(16,444)
Stock-based compensation expense	7,400	7,200	22,500	21,600
Corporate and Unallocated
Segment information
Corporate and unallocated expenses	(43,363)	(41,293)	(122,918)	(110,064)
Other income (expense)	(1,269)	(886)	(1,235)	(6,476)
Income before provision for income taxes			(4,288)
Depreciation and amortization	(1,419)	(961)	(4,288)	(2,152)
Payroll cost	21,900	19,800	64,600	60,600
Stock-based compensation expense	7,400	7,200	22,500	21,600
Professional service expenses	12,700	10,900	33,900	27,900
Other operating expenses	8,800	10,600	24,400	21,600
Direct Store Delivery ("DSD") \| Operating segment
Segment information
Net sales	609,938	566,768	1,784,398	1,627,936
Contribution margin	232,666	194,915	675,281	548,906
Other income (expense)	231	180	529	468
Income before provision for income taxes			(14,588)
Depreciation and amortization	(4,626)	(5,069)	(14,588)	(14,091)
Warehouse ("Warehouse") \| Operating segment
Segment information
Net sales	26,034	23,654	74,903	77,463
Contribution margin	604	(2,193)	2,221	(682)
Other income (expense)			(1)	(1)
Income before provision for income taxes			(248)
Depreciation and amortization	$ (85)	$ (78)	$ (248)	$ (201)

SEGMENT INFORMATION (Details 2) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
SEGMENT INFORMATION (Details 2) - USD ($) $ in Thousands	Sep. 30, 2014	Sep. 30, 2013	Sep. 30, 2014	Sep. 30, 2013
Segment information
Net sales	$ 635,972	$ 590,422	$ 1,859,301	$ 1,705,579
Outside United States
Segment information
Net sales	136,300	121,100	400,400	354,900
Energy drinks
Segment information
Net sales	591,358	548,109	1,730,602	1,577,034
Non-carbonated (primarily juice based beverages and Peace Tea iced teas)
Segment information
Net sales	33,626	30,622	94,698	94,760
Carbonated (primarily soda beverages)
Segment information
Net sales	7,216	8,067	22,756	22,732
Other
Segment information
Net sales	$ 3,772	$ 3,624	$ 11,245	$ 11,053
Coca-Cola Refreshments ("CCR") \| Direct Store Delivery ("DSD") \| Sales \| Customer concentration
Segment information
Percentage of net sales from major customer	28.00%	29.00%	29.00%	29.00%

RELATED PARTY TRANSACTIONS (Details) - Directors and Officers that provide promotional materials $ in Millions	3 Months Ended		9 Months Ended
	Sep. 30, 2014 USD ($)	Sep. 30, 2013 USD ($)	Sep. 30, 2014 USD ($) item	Sep. 30, 2013 USD ($)
Related party transactions
Number of directors and officers who are principal owners of a company that provides promotional materials \| item			2
Expenses incurred in connection with materials or services provided by a related party \| $	$ 0.3	$ 0.1	$ 0.5	$ 0.4

Label	Element	Value
Unrecognized Tax Benefits	us-gaap_UnrecognizedTaxBenefits	$ 935,000
Unrecognized Tax Benefits	us-gaap_UnrecognizedTaxBenefits	$ 935,000