View Filing Data

Print Document View Excel Document

Document and Entity Information - shares	9 Months Ended
Document and Entity Information - shares	Sep. 30, 2016	Oct. 20, 2016
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, 2016
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		190,324,886
Document Fiscal Year Focus	2016
Document Fiscal Period Focus	Q3

CONDENSED CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands	Sep. 30, 2016	Dec. 31, 2015
CURRENT ASSETS:
Cash and cash equivalents	$ 341,526	$ 2,175,417
Short-term investments	257,653	744,610
Accounts receivable, net	467,348	352,955
TCCC Transaction receivable	125,000	125,000
Inventories	167,840	156,121
Prepaid expenses and other current assets	35,016	26,967
Prepaid income taxes	155,641	18,462
Total current assets	1,550,024	3,599,532
INVESTMENTS	9,519	15,348
PROPERTY AND EQUIPMENT, net	144,625	97,354
DEFERRED INCOME TAXES	142,116	140,468
GOODWILL	1,283,643	1,279,715
OTHER INTANGIBLE ASSETS, net	1,080,813	427,986
OTHER ASSETS	25,691	10,874
Total Assets	4,236,431	5,571,277
CURRENT LIABILITIES:
Accounts payable	172,159	144,763
Accrued liabilities	91,819	81,786
Accrued promotional allowances	140,952	115,530
Accrued distributor terminations	5,650	11,018
Deferred revenue	34,407	32,271
Accrued compensation	21,820	22,159
Income taxes payable	5,835	2,750
Total current liabilities	472,642	410,277
DEFERRED REVENUE	365,389	351,590
COMMITMENTS AND CONTINGENCIES (Note 11)
STOCKHOLDERS' EQUITY:
Common stock - $0.005 par value; 240,000 shares authorized; 207,384 shares issued and 190,426 outstanding as of September 30, 2016; 207,019 shares issued and 202,900 outstanding as of December 31, 2015	1,037	1,035
Additional paid-in capital	4,036,204	3,991,857
Retained earnings	1,934,601	1,394,863
Accumulated 0ther Comprehensive Income (Loss), Net of Tax	(14,534)	(21,878)
Common stock in treasury, at cost; 16,958 shares and 4,119 shares as of September 30, 2016 and December 31, 2015, respectively	(2,558,908)	(556,467)
Total stockholders' equity	3,398,400	4,809,410
Total Liabilities and Stockholders' Equity	$ 4,236,431	$ 5,571,277

CONDENSED CONSOLIDATED BALANCE SHEETS (Parenthetical) - $ / shares	Sep. 30, 2016	Dec. 31, 2015
CONDENSED CONSOLIDATED BALANCE SHEETS
Common stock, par value (in dollars per share)	$ 0.005	$ 0.005
Common stock, shares authorized	240,000,000	240,000,000
Common stock, shares issued	207,384,000	207,019,000
Common stock, shares outstanding	190,426,000	202,900,000
Common stock in treasury, shares	16,958,000	4,119,000

CONDENSED CONSOLIDATED STATEMENTS OF INCOME - USD ($) shares in Thousands, $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2016	Sep. 30, 2015	Sep. 30, 2016	Sep. 30, 2015
CONDENSED CONSOLIDATED STATEMENTS OF INCOME
NET SALES	$ 787,954	$ 756,619	$ 2,295,628	$ 2,077,131
COST OF SALES	284,979	291,143	851,741	848,191
GROSS PROFIT	502,975	465,476	1,443,887	1,228,940
OPERATING EXPENSES	212,600	174,038	610,277	725,205
GAIN ON SALE OF MONSTER NON-ENERGY				161,470
OPERATING INCOME	290,375	291,438	833,610	665,205
INTEREST and OTHER EXPENSE, net	(1,037)	(3,362)	(651)	(3,144)
INCOME BEFORE PROVISION FOR INCOME TAXES	289,338	288,076	832,959	662,061
PROVISION FOR INCOME TAXES	97,695	113,502	293,221	254,070
NET INCOME	$ 191,643	$ 174,574	$ 539,738	$ 407,991
NET INCOME PER COMMON SHARE:
Basic (in dollars per share)	$ 1.01	$ 0.85	$ 2.72	$ 2.22
Diluted (in dollars per share)	$ 0.99	$ 0.84	$ 2.67	$ 2.17
WEIGHTED AVERAGE NUMBER OF SHARES OF COMMON STOCK AND COMMON STOCK EQUIVALENTS:
Basic (in shares)	190,379	205,051	198,073	184,098
Diluted (in shares)	194,431	208,094	202,093	188,131

CONDENSED CONSOLIDATED STATEMENTS OF INCOME (Parenthetical)	Oct. 14, 2016
CONDENSED CONSOLIDATED STATEMENTS OF INCOME
Common stock dividend percentage	2

CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2016	Sep. 30, 2015	Sep. 30, 2016	Sep. 30, 2015
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME
Net income, as reported	$ 191,643	$ 174,574	$ 539,738	$ 407,991
Other comprehensive income (loss):
Change in foreign currency translation adjustment	(57)	(1,778)	7,344	(9,398)
Other comprehensive income (loss)	(57)	(1,778)	7,344	(9,398)
Comprehensive income	$ 191,586	$ 172,796	$ 547,082	$ 398,593

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands	9 Months Ended
	Sep. 30, 2016	Sep. 30, 2015
CASH FLOWS FROM OPERATING ACTIVITIES:
Net income	$ 539,738	$ 407,991
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization	29,874	21,757
Gain on disposal of property and equipment	(171)	(212)
Gain on sale of Monster Non-Energy		(161,470)
Stock-based compensation	33,735	23,689
Deferred income taxes	(1,652)	(115,098)
Effect on cash of changes in operating assets and liabilities, net of effects of acquisitions:
Accounts receivable	(100,233)	(132,614)
Distributor receivables	(21,034)	393
Inventories	18,355	(9,076)
Prepaid expenses and other current assets	(8,805)	(6,863)
Prepaid income taxes	(136,899)	(83,276)
Accounts payable	21,795	75,142
Accrued liabilities	8,303	29,296
Accrued promotional allowances	23,411	15,196
Accrued distributor terminations	(5,466)	7,706
Accrued compensation	(346)	2,414
Income taxes payable	3,340	312,750
Deferred revenue	16,757	(35,991)
Net cash provided by operating activities	420,702	351,734
CASH FLOWS FROM INVESTING ACTIVITIES:
Maturities of held-to-maturity investments	892,453	998,762
Sales of available-for-sale investments	2,993	4,001
Sales of trading investments		2,625
Proceeds from transfer of distribution rights to TCCC		179,658
Purchases of held-to-maturity investments	(378,254)	(1,760,178)
Purchases of available-for-sale investments	(24,405)
Purchases of property and equipment	(67,527)	(25,627)
Proceeds from the sale of Monster Non-Energy		198,008
Proceeds from sale of property and equipment	705	484
Purchases of AFF Assets, net	(688,485)
Increase in intangibles	(4,255)	(5,352)
Decrease (Increase) in other assets	56	(1,039)
Net cash used in investing activities	(266,719)	(408,658)
CASH FLOWS FROM FINANCING ACTIVITIES:
Principal payments on debt	(1,731)	(807)
Issuance of common stock	10,615	1,691,051
Purchases of common stock held in treasury	(2,002,441)	(758,974)
Net cash (used in) provided by financing activities	(1,993,557)	931,270
Effect of exchange rate changes on cash and cash equivalents	5,683	(3,952)
NET (DECREASE) INCREASE IN CASH AND CASH EQUIVALENTS	(1,833,891)	870,394
CASH AND CASH EQUIVALENTS, beginning of period	2,175,417	370,323
CASH AND CASH EQUIVALENTS, end of period	341,526	1,240,717
Cash paid during the period for:
Interest	53	21
Income taxes	$ 429,371	$ 141,184

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS SUPPLEMENTAL DISCLOSURE OF NON-CASH ITEMS - USD ($) $ in Millions	9 Months Ended
	Sep. 30, 2016	Sep. 30, 2015
Capital leases for the acquisition of promotional vehicles	$ 2.2	$ 1.1
Net change in accrued liabilities related to intangible addition	$ 2.3	3.1
Purchase of treasury stock includes accounts payable		$ 40.7
Coca-Cola Transaction Asset Transfer Agreement \| TCCC
Number of shares issued for acquisition		11,800,000

BASIS OF PRESENTATION	9 Months Ended
BASIS OF PRESENTATION	Sep. 30, 2016
BASIS OF PRESENTATION
BASIS OF PRESENTATION	1. BASIS OF PRESENTATION Reference is made to the Notes to Consolidated Financial Statements, in Monster Beverage Corporation and Subsidiaries (the “Company”) Annual Report on Form 10-K for the year ended December 31, 2015 (“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, 2016 and 2015, respectively, is unaudited and reflects all adjustments, which include only normal recurring adjustments and which in the opinion of management are necessary to make the interim condensed consolidated financial statements not misleading. Results of operations for periods covered by this report may not necessarily be indicative of results of operations for the full year. The preparation of financial statements in conformity with GAAP necessarily requires management to make estimates and assumptions that affect the reported 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. Adjustment – Subsequent to the issuance of the Company’s condensed consolidated financial statements on Form 10-Q for the quarterly period ended June 30, 2016, management concluded that its presentation of prepaid income taxes, deferred income taxes and income taxes payable should be adjusted to conform to its filed 2015 United States (“U.S.”) Federal income tax return. As a result of such adjustments, prepaid income taxes increased by $16.9 million, deferred income taxes decreased by $120.8 million and income taxes payable decreased by $103.9 million in the comparable condensed consolidated balance sheet as of December 31, 2015. During the second quarter of 2016, the Company renamed and revised its reportable segments to reflect management’s current view of the business and to align its external financial reporting with its operating and internal financial model. Historical segment information has been revised to reflect the effect of this change. See Note 17 for additional information about the Company’s reporting segments.

ACQUISITIONS AND DIVESTITURES

9 Months Ended

Sep. 30, 2016

ACQUISITIONS AND DIVESTITURES

ACQUISITIONS AND DIVESTITURES

2. ACQUISITIONS AND DIVESTITURES

American Fruits & Flavors

On April 1, 2016, the Company completed its acquisition of flavor supplier and long-time business partner American Fruits & Flavors (“AFF”), in an asset acquisition that brought the Company’s primary flavor supplier in-house, secured the intellectual property of the Company’s most important flavors in perpetuity and further enhanced its flavor development and global flavor footprint capabilities (the “AFF Transaction”). Pursuant to the terms of the AFF Transaction, the Company purchased AFF for $688.5 million in cash after adjustments.

The Company accounted for the AFF Transaction in accordance with Financial Accounting Standards Board (“FASB”) Accounting Standards Codification (“ASC”) 805 “Business Combinations”.

The following table summarizes the preliminary fair value allocations of the AFF Transaction consideration:

	Identifiable Assets Acquired and Liabilities Assumed		Consideration Transferred
Intangibles - flavor formulas (non-amortizing)¹	$	618,000	$	-
Intangibles - flavor formulas (amortizing)	641		-
Intangibles - customer relationships (amortizing)	30,100		-
Intangibles - trademarks (amortizing)	500		-
Intangibles - other (amortizing)	200		-
Working capital (excluding inventory)	1,861		-
Inventory	27,600		-
Property and equipment, net	1,175		-
Favorable leases	4,480		-
Goodwill	3,928		-
Cash	-		688,485
Total	$	688,485	$	688,485

1Represents proprietary formulas for the Company’s principal products.

The fair value analysis has yet to progress to a stage where there is sufficient information for a definitive measurement of the respective fair values. Accordingly, the respective fair value allocations are preliminary and are based on valuations derived from estimated fair value assumptions used by management. The Company expects to complete its fair value analysis at a level of detail necessary to finalize the underlying fair value allocation as soon as practicable, but no later than twelve months from the closing of the AFF Transaction. The final respective fair value allocations and the preliminary estimates of management may differ substantially. However, the impact of any such differences on the Company’s financial position, results of operations and liquidity would not be material.

The Company determined the estimated fair values as follows:

· Flavor formulas (non-amortizing) – multi-period excess earnings method

· Flavor formulas (amortizing) – replacement cost method

· Customer relationships – multi-period excess earnings method

· Trademarks – relief-from-royalty method

· Inventory – comparative sales method and replacement cost method

· Property and equipment, net – replacement cost method

· Favorable leases – discounted cash flow method

The preliminary book value of the working capital (excluding inventory) approximates fair value.

The Company has determined goodwill in accordance with ASC 805-30-30-1, “Business Combinations,” which requires the recognition of goodwill for the excess of the aggregate consideration over the net amounts of identifiable assets acquired and liabilities assumed as of the acquisition date.

For tax purposes, the AFF Transaction was recorded as an asset purchase. As such, the Company received a step-up in tax basis of the AFF assets, net, equal to the purchase price.

In accordance with Regulation S-X, pro forma unaudited condensed financial information for the AFF Transaction has not been provided as the impact of the transaction on the Company’s financial position, results of operations and liquidity was not material.

The Coca-Cola Company

On June 12, 2015, the Company completed the transactions contemplated by the definitive agreements entered into with The Coca-Cola Company (“TCCC”) on August 14, 2014 (the “TCCC Transaction”), which provided for a long-term strategic relationship in the global energy drink category.

In consequence of the TCCC Transaction, (1) the Company issued to TCCC 34,040,534 newly issued Company common shares representing approximately 16.7% of the total number of outstanding Company common shares (after giving effect to such issuance) at such time and TCCC appointed two individuals to the Company’s Board of Directors, (2) TCCC transferred all of its rights in and to TCCC’s worldwide energy drink business (“KO Energy”) to the Company, (3) the Company transferred all of its rights in and to its non-energy drink business (“Monster Non-Energy”) to TCCC, (4) the Company and TCCC amended the distribution coordination agreements previously existing between them to govern the transition of third parties’ rights to distribute the Company’s energy products in most territories in the U.S. to members of TCCC’s distribution network, which consists of owned or controlled bottlers/distributors and independent bottling/distribution partners, and (5) TCCC and one of its subsidiaries made an aggregate net cash payment to the Company of $2.15 billion, $125.0 million of which was held in escrow through June 17, 2016, subject to release upon the achievement of milestones relating to the transition of distribution rights to TCCC’s distribution network.

Under the terms of the escrow agreement and the transition payment agreement entered into in connection therewith, if the distribution rights in the U.S. transitioned to TCCC’s distribution network represented case sales in excess of the following percentages of a target case sale amount agreed to by the parties, amounts in the escrow fund in excess of the applicable amounts below would be released to the Company:

Percentage Transitioned		Escrow Release
40%		Amounts in excess of $375 million
50%		Amounts in excess of $312.5 million
60%		Amounts in excess of $250 million
70%		Amounts in excess of $187.5 million
80%		Amounts in excess of $125 million
90%		Amounts in excess of $62.5 million
95%		All remaining amounts

As of September 30, 2016, distribution rights in the U.S. representing approximately 89% of the target case sales had been transitioned to TCCC’s distribution network. As a result, on the one-year anniversary of the closing of the TCCC Transaction, the then-remaining escrow amount of $125 million was released to TCCC. Going forward TCCC will directly pay to the Company the amounts described above that become payable as a result of future target case sale transitions. The Company expects to transition sufficient additional distribution rights to receive all such amounts.

The following unaudited pro forma condensed combined financial information is presented as if the

TCCC Transaction had closed on January 1, 2015:

	Three-Months Ended September 30, 2015
					Pro Forma Adjustments
	Monster Beverage Corporation as reported¹		KO Energy		Disposal of Monster Non- Energy		Other		Pro Forma Combined
Net sales	$	756,619	$	-	$	-	$	-	$	756,619
Net income	174,574		-		-		180		174,754

	Nine-Months Ended September 30, 2015
					Pro Forma Adjustments
	Monster Beverage Corporation as reported²		KO Energy³		Disposal of Monster Non- Energy4		Other		Pro Forma Combined
Net sales	$	2,077,131	$	138,127	$	(60,824)	$	6,803	$	2,161,237
Net income	407,991		100,575		(101,881)		(36,487)		370,198

1 Includes net sales of $69.9 million and net income of $27.4 million (tax affected) related to the acquired KO Energy assets for the three-months ended September 30, 2015.

2 Includes net sales of $82.9 million and net income of $32.9 million (tax affected) related to the acquired KO Energy assets from June 12, 2015 (the date of acquisition) through September 30, 2015.

3 Includes results through June 12, 2015, the date the TCCC Transaction was finalized. The $100.6 million of net income for KO Energy for the nine-months ended September 30, 2015, is presented before tax. The associated estimated provision for income taxes is included in the “Other” category. Net income for KO Energy includes only net revenues and direct operating expenses, rather than full “carve-out” financial statements, because such financial statements would not be meaningful given that it is not possible to provide a meaningful allocation of business unit and corporate costs, interest or tax in respect of KO Energy.

4 Includes results through June 12, 2015. Net income includes the gain recognized on the sale of Monster Non-Energy of $161.5 million.

Pro-Forma Adjustments – Other include the following:

	Three-Months Ended September 30, 2015		Nine-Months Ended September 30, 2015
Net sales:
Amortization of deferred revenue	$	-	$	6,803

Net income:
Amortization of deferred revenue	$	-	$	6,803
To record sales commissions	-		(15,470)
To record amortization of definite lived KO Energy intangibles	-		(3,126)
To eliminate TCCC Transaction expenses	292		15,425
Estimated provision for income taxes on pro forma adjustments	(112)		(1,398)
Estimated provision for income taxes on KO Energy income	-		(38,721)
Total	$	180	$	(36,487)

For purposes of the unaudited pro forma financial information, a combined U.S. Federal and state statutory tax rate of 38.5% has been used. This rate does not reflect the Company’s expected effective tax rate, which includes other tax charges and benefits, and does not take into account any historical or possible future tax events that may impact the combined company.

The unaudited pro forma financial information is presented for information purposes only and is not intended to represent or be indicative of the combined results of operations that the Company would have reported had the TCCC Transaction been completed as of the date and for the periods presented, and should not be taken as representative of the Company’s consolidated results of operations following the completion of the TCCC Transaction. In addition, the unaudited pro forma financial information is not intended to project the future financial results of operations of the combined company. The unaudited pro forma combined financial information does not reflect any cost savings, operational synergies or revenue enhancements that the combined company may achieve as a result of the TCCC Transaction, or the costs to combine the operations or costs necessary to achieve cost savings, operating synergies and revenue enhancements.

RECENT ACCOUNTING PRONOUNCEMENTS	9 Months Ended
RECENT ACCOUNTING PRONOUNCEMENTS	Sep. 30, 2016
RECENT ACCOUNTING PRONOUNCEMENTS.
RECENT ACCOUNTING PRONOUNCEMENTS	3. RECENT ACCOUNTING PRONOUNCEMENTS In August 2016, the FASB issued ASU No. 2016-15, “Statement of Cash Flows (Topic 230)”. The new guidance is intended to reduce diversity in practice in how certain transactions are classified in the statement of cash flows. ASU No. 2016-15 is effective for fiscal years, and interim periods within those years, beginning after December 15, 2017. Early adoption is permitted, provided that all of the amendments are adopted in the same period. The guidance requires application using a retrospective transition method. The Company is currently evaluating the impact of ASU No. 2016-15 on its financial position, results of operations and liquidity. In June 2016, the FASB issued ASU No. 2016-13, “Financial Instruments - Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments”. The accounting standard changes the methodology for measuring credit losses on financial instruments and the timing when such losses are recorded. ASU No. 2016-13 is effective for fiscal years, and interim periods within those years, beginning after December 15, 2019. Early adoption is permitted for fiscal years, and interim periods within those years, beginning after December 15, 2018. The Company is currently evaluating the impact of ASU No. 2016-13 on its financial position, results of operations and liquidity. In March 2016, the FASB issued ASU No. 2016-09, “Compensation - Stock Compensation: Improvements to Employee Share-Based Payment Accounting”, which changes how companies account for certain aspects of share-based payments to employees. The new guidance identifies areas for simplification involving several aspects of accounting for share-based payment transactions, including income tax consequences, classification of awards as either equity or liabilities, an option to recognize gross stock compensation expense with actual forfeitures recognized as they occur, and certain classifications on the statement of cash flows. The update is effective for annual reporting periods beginning after December 15, 2016, including interim periods within those annual reporting periods with early application permitted. The Company early adopted the standards update effective January 1, 2016, electing (i) retrospective adjustment in the statement of cash flows and (ii) continued recognition of stock compensation based on estimated forfeitures. For the nine-months ended September 30, 2015, net cash provided by operating activities increased and net cash provided by financing activities decreased by $303.9 million, respectively, as a result of such retrospective adjustment. For the three-and nine-months ended September 30, 2016, the Company recorded $3.5 million and $7.1 million of excess tax benefits in net income that previously would have been recorded in additional paid-in-capital. The adoption of ASU No. 2016-09 did not have a material impact on the Company’s financial position, results of operations or liquidity. In February 2016, the FASB issued ASU No. 2016-02, “Leases (Topic 842)”. This update is intended to increase transparency and comparability among organizations by recognizing lease assets and lease liabilities on the balance sheet and disclosing key information about leasing arrangements. This update is effective for annual and interim reporting periods beginning after December 15, 2018, including interim periods within those fiscal years. Early adoption is permitted. The Company is currently evaluating the impact of ASU No. 2016-02 on its financial position, results of operations and liquidity. In November 2015, the FASB issued ASU No. 2015-17, “Income Taxes (Topic 740), Balance Sheet Classification of Deferred Taxes”. The amendments under the new guidance require that deferred tax liabilities and assets be classified as noncurrent in the classified balance sheets. The guidance is effective for financial statements issued for annual periods beginning after December 15, 2016, and interim periods within those annual periods. Earlier application is permitted for all entities as of the beginning of an interim or annual reporting period. The Company adopted the standards update effective December 31, 2015, electing to apply it retrospectively to all periods presented. In July 2015, the FASB issued ASU No. 2015-11, “Inventory (Topic 330): Simplifying the Measurement of Inventory”. ASU No. 2015-11 requires entities to measure inventory at the lower of cost or net realizable value. Net realizable value is defined as the estimated selling prices in the ordinary course of business, less reasonably predictable costs of completion, disposal and transportation. ASU No. 2015-11 is effective for annual periods, and interim periods within those years, beginning after December 15, 2016. Early adoption is permitted. The adoption of ASU No. 2015-11 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 No. 2014-09 requires that a company recognize revenue at an amount that reflects the consideration to which the company expects to be entitled in exchange for transferring goods or services to a customer. In applying the new guidance, a company will (i) identify the contract(s) with a customer; (ii) identify the performance obligations in the contract; (iii) determine the transaction price; (iv) allocate the transaction price to the contract’s performance obligations; and (v) recognize revenue when (or as) the entity satisfies a performance obligation. ASU No. 2014-09 was to be effective for reporting periods beginning after December 15, 2016. However, on July 9, 2015, the FASB voted to approve a one-year deferral of the effective date. This new guidance is effective for the Company beginning January 1, 2018 and can be adopted using either a full retrospective or modified approach. The Company is currently evaluating the impact of ASU No. 2014-09 on its financial position, results of operations and liquidity.

INVESTMENTS

9 Months Ended

Sep. 30, 2016

INVESTMENTS

INVESTMENTS

4. INVESTMENTS

The following table summarizes the Company’s investments at:

September 30, 2016	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:
Commercial paper	$	28,318	$	-	$	-	$	28,318	$	-	$	-
Municipal securities	181,843		-		222		181,621		222		-
U.S. government agency securities	26,080		1		3		26,078		3		-
Long-term:
Municipal securities	9,519		-		19		9,500		19		-

Available-for-Sale:
Short-term:
Variable rate demand notes	21,412		-		-		21,412		-		-
Total	$	267,172	$	1	$	244	$	266,929	$	244	$	-

December 31, 2015	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:
Commercial paper	$	3,978	$	-	$	-	$	3,978	$	-	$	-
Municipal securities	709,207		63		192		709,078		192		-
U.S. government agency securities	23,369		-		58		23,311		58		-
U.S. Treasuries	8,056		-		13		8,043		13		-
Long-term:
Municipal securities	11,071		-		8		11,063		8		-
U.S. government agency securities	4,277		-		25		4,252		25		-
Total	$	759,958	$	63	$	296	$	759,725	$	296	$	-

During the three- and nine-months ended September 30, 2016 and 2015, realized gains or losses recognized on the sale of investments were not significant.

The Company’s investments at September 30, 2016 and December 31, 2015 in commercial paper, municipal securities, U.S. government agency securities, variable rate demand notes (“VRDNs”) and/or U.S. Treasuries carried investment grade credit ratings. VRDNs are floating rate municipal bonds with embedded put options that allow the bondholder to sell the security at par plus accrued interest. All of the put options are secured by a pledged liquidity source. While they are classified as marketable investment securities, the put option allows the VRDNs to be liquidated at par on a same day or more generally, on a seven day settlement basis.

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

	September 30, 2016				December 31, 2015
	Amortized Cost		Fair Value		Amortized Cost		Fair Value
Less than 1 year:
Commercial paper	$	28,318	$	28,318	$	3,978	$	3,978
Municipal securities	181,843		181,621		709,207		709,078
U.S. government agency securities	26,080		26,078		23,369		23,311
U.S. Treasuries	-		-		8,056		8,043
Due 1 -10 years:
Municipal securities	9,519		9,500		11,071		11,063
U.S. government agency securities	-		-		4,277		4,252
Variable rate demand notes	6,003		6,003		-		-
Due 11 - 20 years:
Variable rate demand notes	8,005		8,005		-		-
Due 21 - 30 years:
Variable rate demand notes	4,002		4,002		-		-
Due 31 - 40 years:
Variable rate demand notes	3,402		3,402		-		-
Total	$	267,172	$	266,929	$	759,958	$	759,725

- 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, 2016

FAIR VALUE OF CERTAIN FINANCIAL ASSETS AND LIABILITIES

FAIR VALUE OF CERTAIN FINANCIAL ASSETS AND LIABILITIES

5. FAIR VALUE OF CERTAIN FINANCIAL ASSETS AND LIABILITIES

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

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

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

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

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

The following tables present the Company’s held-to-maturity investments at amortized cost and 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, 2016	Level 1		Level 2			Level 3		Total
Cash	$	267,056	$	-		$	-	$	267,056
Money market funds	27,784		-			-		27,784
Certificates of deposit	-		4,908			-		4,908
Commercial paper	-		43,503			-		43,503
Variable rate demand notes	-		21,412			-		21,412
Municipal securities	-		217,955			-		217,955
U.S. government agency securities	-		26,080			-		26,080
Foreign currency derivatives	-		105			-		105
Total	$	294,840	$	313,963		$	-	$	608,803

Amounts included in:
Cash and cash equivalents	$	294,840	$	46,686		$	-	$	341,526
Short-term investments	-		257,653			-		257,653
Accounts receivable, net	-		231			-		231
Investments	-		9,519			-		9,519
Accrued liabilities	-		(126		)	-		(126		)
Total	$	294,840	$	313,963		$	-	$	608,803

December 31, 2015	Level 1		Level 2			Level 3		Total
Cash	$	255,723	$	-		$	-	$	255,723
Money market funds	664,005		-			-		664,005
Certificates of deposit	-		85,007			-		85,007
Commercial paper	-		430,605			-		430,605
U.S. Treasuries	-		260,035			-		260,035
Municipal securities	-		731,744			-		731,744
U.S. government agency securities	-		508,256			-		508,256
Foreign currency derivatives	-		(217		)	-		(217		)
Total	$	919,728	$	2,015,430		$	-	$	2,935,158

Amounts included in:
Cash and cash equivalents	$	919,728	$	1,255,689		$	-	$	2,175,417
Short-term investments	-		744,610			-		744,610
Accounts receivable, net	-		371			-		371
Investments	-		15,348			-		15,348
Accrued liabilities	-		(588		)	-		(588		)
Total	$	919,728	$	2,015,430		$	-	$	2,935,158

All of the Company’s short-term investments are classified within Level 1 or Level 2 of the fair value hierarchy. The Company’s valuation of its Level 1 investments, which include money market funds, is based on quoted market prices in active markets for identical securities. The Company’s valuation of its Level 2 investments, which include municipal securities, commercial paper, U.S. Treasuries, certificates of deposit, variable rate demand notes and U.S. government agency securities, is based on other observable inputs, specifically a market approach which utilizes valuation models, pricing systems, mathematical tools and other relevant information for the same or similar securities. The Company’s valuation of its Level 2 foreign currency 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, 2016 or the year ended December 31, 2015, and there were no changes in the Company’s valuation techniques.

- 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, 2016

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 nine-months ended September 30, 2016 and the year ended December 31, 2015, the Company entered into forward currency exchange contracts with financial institutions to create an economic hedge to specifically manage a portion of the foreign exchange risk exposure associated with certain consolidated subsidiaries’ non-functional currency denominated assets and liabilities. All foreign currency exchange contracts of the Company that were outstanding as of September 30, 2016 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, 2016
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 GBP	$	16,283	$	46	Accounts receivable, net
Receive EUR/pay USD	30,682		31		Accounts receivable, net
Receive USD/pay AUD	17,978		63		Accounts receivable, net
Receive USD/pay ZAR	19,861		65		Accounts receivable, net
Receive USD/pay BRL	3,046		26		Accounts receivable, net


Liabilities:
Foreign currency exchange contracts:
Receive CAD/pay USD	$	20,609	$	(14)	Accrued liabilities
Receive USD/pay MXN	27,360		(65)		Accrued liabilities
Receive USD/pay NZD	3,119		(11)		Accrued liabilities
Receive USD/pay SEK	1,856		(1)		Accrued liabilities
Receive USD/pay CLP	3,435		(10)		Accrued liabilities
Receive USD/pay COP	2,041		(21)		Accrued liabilities
Receive SGD/pay USD	2,571		(4)		Accrued liabilities

December 31, 2015
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 GBP	$	18,146	$	168	Accounts receivable, net
Receive USD/pay ZAR	17,411		144		Accounts receivable, net
Receive USD/pay RUB	2,173		9		Accounts receivable, net
Receive USD/pay BRL	2,478		49		Accounts receivable, net
Receive USD/pay COP	1,351		1		Accounts receivable, net


Liabilities:
Foreign currency exchange contracts:
Receive EUR/pay USD	$	39,578	$	(429)	Accrued liabilities
Receive USD/pay AUD	14,040		(82)		Accrued liabilities
Receive USD/pay CAD	2,804		(15)		Accrued liabilities
Receive USD/pay JPY	2,495		(2)		Accrued liabilities
Receive USD/pay MXN	8,122		(15)		Accrued liabilities
Receive SGD/pay USD	3,837		(30)		Accrued liabilities
Receive USD/pay NZD	1,978		(3)		Accrued liabilities
Receive USD/pay CLP	3,519		(12)		Accrued liabilities

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

		Amount of gain (loss) recognized in income on derivatives
		Three-months ended
Derivatives not designated as hedging instruments under FASB ASC 815-20	Location of gain (loss) recognized in income on derivatives	September 30, 2016		September 30, 2015
Foreign currency exchange contracts	Interest and other expense, net	$	(882)	$	3,552

		Amount of gain (loss) recognized in income on derivatives
		Nine-months ended
Derivatives not designated as hedging instruments under FASB ASC 815-20	Location of gain (loss) recognized in income on derivatives	September 30, 2016		September 30, 2015
Foreign currency exchange contracts	Interest and other expense, net	$	(424)	$	1,634

- 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

Reference 1: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 815
-SubTopic 30
-Section 45
-Paragraph 1
-URI http://asc.fasb.org/extlink&oid=6441202&loc=d3e80720-113993

Reference 2: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 815
-SubTopic 10
-Section 50
-Paragraph 4C
-URI http://asc.fasb.org/extlink&oid=56946850&loc=SL5624171-113959

Reference 3: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 815
-SubTopic 10
-Section 50
-Paragraph 2
-URI http://asc.fasb.org/extlink&oid=56946850&loc=d3e41620-113959

Reference 4: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 815
-SubTopic 10
-Section 50
-Paragraph 4B
-URI http://asc.fasb.org/extlink&oid=56946850&loc=SL5624163-113959

Reference 5: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 815
-SubTopic 10
-Section 50
-Paragraph 1
-URI http://asc.fasb.org/extlink&oid=56946850&loc=SL5579240-113959

Reference 6: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 815
-SubTopic 10
-Section 50
-Paragraph 4D
-URI http://asc.fasb.org/extlink&oid=56946850&loc=SL5624177-113959

Reference 7: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 815
-SubTopic 30
-Section 50
-Paragraph 2
-URI http://asc.fasb.org/extlink&oid=35736893&loc=d3e80784-113994

Reference 8: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 815
-SubTopic 10
-Section 50
-Paragraph 5
-URI http://asc.fasb.org/extlink&oid=56946850&loc=d3e41641-113959

Reference 9: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 815
-SubTopic 10
-Section 50
-Paragraph 1A
-URI http://asc.fasb.org/extlink&oid=56946850&loc=SL5579245-113959

Reference 10: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 815
-SubTopic 10
-Section 50
-Paragraph 4H
-URI http://asc.fasb.org/extlink&oid=56946850&loc=SL5624258-113959

Reference 11: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 815
-SubTopic 30
-Section 50
-Paragraph 1
-URI http://asc.fasb.org/extlink&oid=35736893&loc=d3e80748-113994

Reference 12: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 815
-SubTopic 10
-Section 50
-Paragraph 4K
-URI http://asc.fasb.org/extlink&oid=56946850&loc=SL5708775-113959

Reference 13: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 815
-SubTopic 10
-Section 50
-Paragraph 4J
-URI http://asc.fasb.org/extlink&oid=56946850&loc=SL5708773-113959

Reference 14: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 815
-SubTopic 10
-Section 50
-Paragraph 4A
-URI http://asc.fasb.org/extlink&oid=56946850&loc=SL5618551-113959

Reference 15: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 815
-SubTopic 10
-Section 50
-Paragraph 1B
-URI http://asc.fasb.org/extlink&oid=56946850&loc=SL5580258-113959

Reference 16: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 815
-SubTopic 10
-Section 50
-Paragraph 4E
-URI http://asc.fasb.org/extlink&oid=56946850&loc=SL5624181-113959

Reference 17: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 815
-SubTopic 25
-Section 50
-Paragraph 1
-URI http://asc.fasb.org/extlink&oid=6886632&loc=d3e76258-113986

Reference 18: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 815
-SubTopic 10
-Section 50
-Paragraph 4
-URI http://asc.fasb.org/extlink&oid=56946850&loc=d3e41638-113959

Reference 19: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 235
-SubTopic 10
-Section S99
-Paragraph 1
-Subparagraph (SX 210.4-08.(n))
-URI http://asc.fasb.org/extlink&oid=26873400&loc=d3e23780-122690

+ Details

INVENTORIES

9 Months Ended

Sep. 30, 2016

INVENTORIES

INVENTORIES

7. INVENTORIES

Inventories consist of the following at:

	September 30, 2016		December 31, 2015
Raw materials	$	68,860	$	52,043
Finished goods	98,980		104,078
	$	167,840	$	156,121

PROPERTY AND EQUIPMENT, NET

9 Months Ended

Sep. 30, 2016

PROPERTY AND EQUIPMENT, NET

PROPERTY AND EQUIPMENT, Net

8. PROPERTY AND EQUIPMENT, NET

Property and equipment consist of the following at:

	September 30, 2016		December 31, 2015
Land	$	46,597	$	6,792
Leasehold improvements	2,726		2,804
Furniture and fixtures	3,607		3,551
Office and computer equipment	11,538		11,080
Computer software	3,203		2,530
Equipment	107,704		93,465
Buildings	41,943		39,848
Vehicles	31,737		29,804
	249,055		189,874
Less: accumulated depreciation and amortization	(104,430)		(92,520)
	$	144,625	$	97,354

In September 2016, the Company completed its acquisition of approximately 49 acres of land, located in Rialto, CA, for a purchase price of approximately $39.1 million. The Company intends to build an approximately 1,000,000 square-foot building to replace its current leased warehouse and distribution space located in Corona, CA.

GOODWILL AND OTHER INTANGIBLE ASSETS

9 Months Ended

Sep. 30, 2016

GOODWILL AND OTHER INTANGIBLE ASSETS.

GOODWILL AND OTHER INTANGIBLE ASSETS

9. GOODWILL AND OTHER INTANGIBLE ASSETS

The following is a roll-forward of goodwill for the nine-months ended September 30, 2016 by reportable segment:

	Monster Energy® Drinks		Strategic Brands		Other		Total
Balance at December 31, 2015	$	641,716	$	637,999	$	-	$	1,279,715
Acquisitions	3,928		-		-		3,928
Balance at September 30, 2016	$	645,644	$	637,999	$	-	$	1,283,643

Intangible assets consist of the following at:

	September 30, 2016		December 31, 2015
Amortizing intangibles	$	71,227	$	35,263
Accumulated amortization	(11,574)		(3,899)
	59,653		31,364
Non-amortizing intangibles	1,021,160		396,622
	$	1,080,813	$	427,986

Amortizing intangibles primarily consist of customer relationships. All amortizing intangibles have been assigned an estimated finite useful life and such intangibles are amortized on a straight-line basis over the number of years that approximate their respective useful lives, generally five to seven years. Total amortization expense recorded was $3.0 million and $1.8 million for the three-months ended September 30, 2016 and 2015, respectively. Total amortization expense recorded was $7.7 million and $2.1 million for the nine-months ended September 30, 2016 and 2015, respectively.

DISTRIBUTION AGREEMENTS	9 Months Ended
DISTRIBUTION AGREEMENTS	Sep. 30, 2016
DISTRIBUTION AGREEMENTS
DISTRIBUTION AGREEMENTS	10. DISTRIBUTION AGREEMENTS In accordance with ASC No. 420 “Exit or Disposal Cost Obligations”, the Company expenses distributor termination costs in the period in which the written notification of termination occurs. The Company incurred termination costs of $4.7 million and $2.5 million for the three-months ended September 30, 2016 and 2015, respectively. The Company incurred termination costs of $33.4 million and $220.7 million for the nine-months ended September 30, 2016 and 2015, respectively. Such termination costs have been expensed in full and are included in operating expenses for the three- and nine-months ended September 30, 2016 and 2015. In the normal course of business, amounts received pursuant to new and/or amended distribution agreements entered into with certain distributors, relating to the costs associated with terminating agreements with the Company’s prior distributors, are accounted for as deferred revenue and are recognized as revenue ratably over the anticipated life of the respective distribution agreement, generally 20 years. Revenue recognized was $8.4 million and $8.2 million for the three-months ended September 30, 2016 and 2015, respectively. There was no acceleration of deferred revenue in the three-months ended September 30, 2016 and 2015, respectively. Revenue recognized was $28.6 million and $54.7 million for the nine-months ended September 30, 2016 and 2015, respectively. Included in the $28.6 million of revenue recognized for the nine-months ended September 30, 2016, was $5.0 million related to the accelerated amortization of the deferred revenue balances associated with certain of the Company’s prior distributors who were sent notices of termination during the nine-months ended September 30, 2016. Included in the $54.7 million of revenue recognized for the nine-months ended September 30, 2015 was $39.8 million related to the accelerated amortization of the deferred revenue balances associated with certain of the Company’s prior distributors who were sent notices of termination during the nine-months ended September 30, 2015.

COMMITMENTS AND CONTINGENCIES	9 Months Ended
COMMITMENTS AND CONTINGENCIES	Sep. 30, 2016
COMMITMENTS AND CONTINGENCIES
COMMITMENTS AND CONTINGENCIES	11. COMMITMENTS AND CONTINGENCIES The Company had purchase commitments aggregating approximately $55.0 million at September 30, 2016, 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 $140.9 million at September 30, 2016, which related primarily to sponsorships and other marketing activities. The Company had operating lease commitments aggregating approximately $18.6 million at September 30, 2016, which related primarily to warehouse and office space. In July 2016, the Company entered into an agreement to acquire an approximately 75,425 square foot, free standing, three-story office building, including the real property thereunder and improvements thereon, located in Corona, CA adjacent to its current corporate headquarters, for a purchase price of approximately $12.6 million. The purchase is subject to various conditions precedent that must be satisfied prior to the closing. If the Company ultimately acquires the building, it intends to complete any necessary improvements and occupy the building as an extension of its existing corporate headquarters at some time in the future. In September 2016, the Company completed its acquisition of approximately 49 acres of land, located in Rialto, CA, for a purchase price of approximately $39.1 million. The Company intends to build an approximately 1,000,000 square-foot building to replace its current leased warehouse and distribution facilities located in Corona, CA. The Company has entered into an approximately $36.8 million guaranteed maximum price construction contract for the construction of the building. Legal Proceedings Litigation – The Company has been named a defendant in numerous personal injury lawsuits, claiming that the death or other serious injury of the plaintiffs was caused by consumption of Monster Energy® brand energy drinks. The plaintiffs in these lawsuits allege strict product liability, negligence, fraudulent concealment, breach of implied warranties and wrongful death. The Company believes that each complaint is without merit and plans a vigorous defense. The Company also believes that any damages, if awarded, would not have a material adverse effect on the Company’s financial position or results of operations. State Attorney General Inquiry – In July 2012, the Company received a subpoena from the Attorney General for the State of New York in connection with its investigation concerning the Company’s advertising, marketing, promotion, ingredients, usage and sale of its Monster Energy® brand energy drinks. Production of documents pursuant to that subpoena was completed in approximately May 2014. On August 6, 2014, the Attorney General for the State of New York issued a second subpoena seeking additional documents and the deposition of a Company employee. On September 8, 2014, the Company moved to quash the second subpoena in the Supreme Court, New York County. The motion was fully briefed and was argued on March 17, 2015. No decision has been rendered. It is unknown what, if any, action the state attorney general may take against the Company, the relief which may be sought in the event of any such proceeding or whether such proceeding could have a material adverse effect on the Company’s business, financial condition or results of operations. San Francisco City Attorney Litigation – On October 31, 2012, the Company received a written request for information from the City Attorney for the City and County of San Francisco concerning the Company’s advertising and marketing of its Monster Energy® brand energy drinks and specifically concerning the safety of its products for consumption by adolescents. In a letter dated March 29, 2013, the San Francisco City Attorney threatened to bring suit against the Company if it did not agree to take the following five steps immediately: (i) “Reformulate its products to lower the caffeine content to safe levels”; (ii) “Provide adequate warning labels”; (iii) “Cease promoting over-consumption in marketing”; (iv) “Cease use of alcohol and drug references in marketing” and (v) “Cease targeting minors.” (i) The Company Action – On April 29, 2013, the Company and its wholly-owned subsidiary, Monster Energy Company, filed a complaint for declaratory and injunctive relief against the San Francisco City Attorney (the “Company Action”) in United States District Court for the Central District of California (the “Central District Court”), styled Monster Beverage Corp., et al. v. Dennis Herrera. The Company sought a declaration from the Central District Court that the San Francisco City Attorney’s investigation and demands are impermissible and preempted, subject to the doctrine of primary jurisdiction, are unconstitutional in that they violate the First and Fourteenth Amendments’ prohibitions against compelled speech, content-based speech and commercial speech, are impermissibly void-for-vagueness and/or violate the Commerce Clause. On June 3, 2013, the City Attorney filed a motion to dismiss the Company Action, arguing in part that the complaint should be dismissed in light of the San Francisco Action (described below) filed on May 6, 2013. On August 22, 2013, the Central District Court granted in part and denied in part the City Attorney’s motion. On October 17, 2013, the City Attorney filed a renewed motion to dismiss the Company Action and on December 16, 2013, the Central District Court granted the City Attorney’s renewed motion, dismissing the Company Action. The Company filed a Notice of Appeal to the Ninth Circuit on December 18, 2013 and on May 17, 2016, the Ninth Circuit affirmed the Central District Court’s order. (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 due to the alleged lack of scientific consensus concerning the safety of the levels of caffeine in the Company’s products and (3) is engaged in unfair and misleading business practices because its marketing (a) does not disclose the health risks that energy drinks pose for children and teens, (b) fails to warn against and promotes unsafe consumption, (c) implicitly promotes mixing of energy drinks with alcohol or drugs and (d) is deceptive because it includes unsubstantiated claims about the purported special benefits of its “killer” ingredients and “energy blend.” The City Attorney sought a declaration that the Company has engaged in unfair and unlawful business acts and practices in violation of the Unfair Competition Law, an injunction from performing or proposing to perform any acts in violation of the Unfair Competition Law, restitution and civil penalties. After a motion to strike filed by the Company was granted in part, on March 20, 2014, the City Attorney filed an amended complaint, adding allegations supporting the theory for relief as to which the Court had granted the motion to strike. On April 18, 2014, the Company filed a renewed motion to strike, as well as a motion asking the Court to bifurcate and/or stay claims relating to the safety of Monster Energy® brand energy drinks, pending resolution of the ongoing U.S. Food and Drug Administration (“FDA”) investigation of the safety and labeling of food products to which caffeine is added. On May 22, 2014, the Court denied the Company’s motion to strike and motion to bifurcate and/or stay claims relating to safety. On September 5, 2014, the City Attorney filed a second amended complaint, adding Monster Energy Company as a defendant. The Company and Monster Energy Company filed answers to the second amended complaint on October 4, 2014 and November 10, 2014, respectively. Discovery is ongoing. The Court has set the case for a bench trial which is scheduled to take place April 10-21, 2017. The Company denies that it has violated the Unfair Competition Law or any other law and believes that the City Attorney’s claims and demands are preempted and unconstitutional, as alleged in the action the Company filed in the Central District Court. The Company intends to vigorously defend against this lawsuit. At this time, no evaluation of the likelihood of an unfavorable outcome or range of potential loss can be expressed. The actions or investigations described above have not progressed to a point where a reasonably possible range of losses associated with their ultimate outcome can be estimated at this time. If the final resolution of any such litigation or proceedings is unfavorable, the Company’s financial condition, operating results and cash flows could be materially affected. In addition to the above matters, the Company has been named as a defendant in various false advertising putative class actions and in a private attorney general action. In these actions, plaintiffs allege that defendants misleadingly labeled and advertised Monster Energy® brand products that allegedly were ineffective for the advertised benefits (including, but not limited to, an allegation that the products do not hydrate as advertised because they contain caffeine). The plaintiffs further allege that the Monster Energy® brand products at issue are unsafe because they contain one or more ingredients that allegedly could result in illness, injury or death. In connection with these product safety allegations, the plaintiffs claim that the product labels did not provide adequate warnings and/or that the Company did not include sufficiently specific statements with respect to contra-indications and/or adverse reactions associated with the consumption of its energy drink products (including, but not limited to, claims that certain ingredients, when consumed individually or in combination with other ingredients, could result in high blood pressure, palpitations, liver damage or other negative health effects and/or that the products themselves are unsafe). Based on these allegations, the plaintiffs assert claims for violation of state consumer protection statutes, including unfair competition and false advertising statutes, and for breach of warranty and unjust enrichment. In their prayers for relief, the plaintiffs seek, inter alia, compensatory and punitive damages, restitution, attorneys’ fees and, in some cases, injunctive relief. The Company regards these cases and allegations as having no merit. Furthermore, the Company is subject to litigation from time to time in the normal course of business, including intellectual property litigation and claims from terminated distributors. Although it is not possible to predict the ultimate outcome of such litigation, based on the facts known to the Company, management believes that such litigation in the aggregate will likely not have a material adverse effect on the Company’s financial position or results of operations. The Company evaluates, on a quarterly basis, developments in legal proceedings and other matters that could cause an increase or decrease in the amount of the liability that is accrued, if any, or in the amount of any related insurance reimbursements recorded. As of September 30, 2016, the Company’s condensed consolidated balance sheet includes accrued loss contingencies of approximately $2.1 million.

ACCUMULATED OTHER COMPREHENSIVE LOSS

9 Months Ended

Sep. 30, 2016

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, 2016 are as follows:

	Currency Translation Losses

Balance at December 31, 2015	$	21,878
Other comprehensive (gain) before reclassifications	-
Amounts reclassified from accumulated other comprehensive loss	-
Net current-period other comprehensive (gain)	(7,344)
Balance at September 30, 2016	$	14,534

- 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
-SubTopic 10
-Section 45
-Paragraph 1A
-URI http://asc.fasb.org/extlink&oid=36458714&loc=SL7669619-108580

Reference 3: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 220
-SubTopic 10
-Section 45
-Paragraph 12
-URI http://asc.fasb.org/extlink&oid=36458714&loc=d3e640-108580

Reference 4: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 220
-SubTopic 10
-Section 45
-Paragraph 17
-URI http://asc.fasb.org/extlink&oid=36458714&loc=d3e716-108580

Reference 5: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 220
-SubTopic 10
-Section 45
-Paragraph 16
-URI http://asc.fasb.org/extlink&oid=36458714&loc=d3e709-108580

Reference 6: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 505
-SubTopic 10
-Section S99
-Paragraph 1
-Subparagraph (SX 210.3-04)
-URI http://asc.fasb.org/extlink&oid=27012166&loc=d3e187085-122770

Reference 7: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 220
-SubTopic 10
-Section 45
-Paragraph 11
-URI http://asc.fasb.org/extlink&oid=36458714&loc=d3e637-108580

Reference 8: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 220
-SubTopic 10
-Section 45
-Paragraph 14
-URI http://asc.fasb.org/extlink&oid=36458714&loc=d3e681-108580

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	9 Months Ended
TREASURY STOCK	Sep. 30, 2016
TREASURY STOCK
TREASURY STOCK	13. TREASURY STOCK On August 2, 2016, the Company’s Board of Directors authorized a new share repurchase program for the repurchase of up to $250.0 million of the Company’s outstanding common stock (the “August 2016 Repurchase Plan”). From August 2, 2016 to September 30, 2016, no shares had been repurchased under the August 2016 Repurchase Plan. Subsequent to September 30, 2016, the Company purchased 0.1 million shares at an average purchase price of $142.82 per share, pursuant to the August 2016 Repurchase Plan. On April 28, 2016, the Board of Directors authorized the Company to commence a “modified Dutch auction” tender offer to repurchase up to $2.0 billion of its outstanding shares of common stock. The repurchase was authorized under the Company’s existing share repurchase authority and was funded with cash on hand. The Company commenced the tender offer in May 2016. On June 15, 2016, the Company accepted for payment an aggregate of 12,820,512 shares of common stock at a purchase price of $156.00 per share, for a total amount of $2.0 billion (excluding commissions), which exhausted the availability under all previously authorized share repurchase plans. Such shares of common stock are included in common stock in treasury in the accompanying condensed consolidated balance sheet at September 30, 2016. During the three-months ended September 30, 2016, 1,200 shares of common stock were purchased from employees in lieu of cash payments for options exercised or withholding taxes due for a total amount of $0.2 million. While such purchases are considered common stock repurchases, they are not counted as purchases against the Company’s authorized share repurchase programs. Such shares are included in common stock in treasury in the accompanying condensed consolidated balance sheet at September 30, 2016.

STOCK-BASED COMPENSATION

9 Months Ended

Sep. 30, 2016

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, 2016: the Monster Beverage Corporation 2011 Omnibus Incentive Plan and the 2009 Monster Beverage Corporation Stock Incentive Plan for Non-Employee Directors.

The Company recorded $12.1 million and $8.9 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, 2016 and 2015, respectively. The Company recorded $33.7 million and $23.7 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, 2016 and 2015, respectively.

The excess tax benefit for tax deductions from non-qualified stock option exercises, disqualifying dispositions of incentive stock options, vesting of restricted stock units and restricted stock awards for the three-months ended September 30, 2016 and 2015 was $3.5 million and $3.6 million, respectively. The excess tax benefit for tax deductions from non-qualified stock option exercises, disqualifying dispositions of incentive stock options, vesting of restricted stock units and restricted stock awards for the nine-months ended September 30, 2016 and 2015 was $7.1 million and $303.9 million, respectively. As a result of the Company’s early adoption of ASU No. 2016-09 effective January 1, 2016, the Company recorded excess tax benefits of $3.5 million and $7.1 million in net income for the three- and nine-months ended September 30, 2016. The excess tax benefits for the three- and nine-months ended September 30, 2015 of $3.6 million and $303.9 million, respectively, were recorded in additional paid-in-capital.

Stock Options

Under the Company’s stock-based compensation plans, all stock options granted as of September 30, 2016 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,
	2016	2015	2016	2015
Dividend yield	0.0%	0.0%	0.0%	0.0%
Expected volatility	36.3%	36.7%	36.1%	37.1%
Risk-free interest rate	1.1%	1.5%	1.4%	1.6%
Expected term	6.4 years	6.1 years	6.3 years	5.8 years

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

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

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

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

Options	Number of Shares (In thousands)	Weighted- Average Exercise Price Per Share		Weighted- Average Remaining Contractual Term (In years)	Aggregate Intrinsic Value
Outstanding at January 1, 2016	6,590	$	50.85	5.6	$	646,497
Granted 01/01/16 - 03/31/16	961	$	132.06
Granted 04/01/16 - 06/30/16	219	$	138.53
Granted 07/01/16 - 09/30/16	14	$	157.80
Exercised	(284)	$	37.34
Cancelled or forfeited	(88)	$	98.28
Outstanding at September 30, 2016	7,412	$	64.14	5.6	$	613,113
Vested and expected to vest in the future at September 30, 2016	7,011	$	60.94	5.4	$	602,318
Exercisable at September 30, 2016	4,359	$	31.77	3.7	$	501,457

The weighted-average grant-date fair value of options granted during the three-months ended September 30, 2016 and 2015 was $59.21 per share and $51.14 per share, respectively. The weighted-average grant-date fair value of options granted during the nine-months ended September 30, 2016 and 2015 was $50.82 per share and $50.20 per share, respectively. The total intrinsic value of options exercised during the three-months ended September 30, 2016 and 2015 was $9.1 million and $11.9 million, respectively. The total intrinsic value of options exercised during the nine-months ended September 30, 2016 and 2015 was $30.6 million and $841.5 million, respectively.

Cash received from option exercises under all plans for the three-months ended September 30, 2016 and 2015 was approximately $2.4 million and $1.9 million, respectively. Cash received from option exercises under all plans for the nine-months ended September 30, 2016 and 2015 was approximately $10.6 million and $43.6 million, respectively.

At September 30, 2016, there was $100.3 million of total unrecognized compensation expense related to non-vested options granted to employees under the Company’s share-based payment plans. That cost is expected to be recognized over a weighted-average period of 3.0 years.

Restricted Stock Awards and Restricted Stock Units

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

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

	Number of Shares (in thousands)	Weighted Average Grant-Date Fair Value
Non-vested at January 1, 2016	178	$	99.58
Granted 01/01/16- 03/31/16	82	$	131.96
Granted 04/01/16- 06/30/16	12	$	148.94
Granted 07/01/16- 09/30/16	-	$	-
Vested	(81)	$	95.62
Forfeited/cancelled	(1)	$	57.45
Non-vested at September 30, 2016	190	$	118.68

No restricted stock units or restricted stock awards were granted during the three-months ended September 30, 2016. The weighted-average grant-date fair value of restricted stock units and restricted stock awards granted during the three-months ended September 30, 2015 was $147.36 per share. The weighted-average grant-date fair value of restricted stock units and restricted stock awards granted during the nine-months ended September 30, 2016 and 2015 was $134.14 per share and $136.50 per share, respectively. As of September 30, 2016, 0.2 million of restricted stock units and restricted stock awards are expected to vest over their respective terms.

At September 30, 2016, total unrecognized compensation expense relating to non-vested restricted stock awards and non-vested restricted stock units was $16.7 million, which is expected to be recognized over a weighted-average period of 1.8 years.

INCOME TAXES

9 Months Ended

Sep. 30, 2016

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, 2016:

	Gross Unrecognized Tax Benefits
Balance at December 31, 2015	$	471
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	(462)
Balance at September 30, 2016	$	9

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, 2016, the Company had no accrued interest and penalties related to unrecognized tax benefits. If the Company were to prevail on all uncertain tax positions, the resultant impact on the Company’s effective tax rate would not be significant. It is expected that 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 August 7, 2015, the Internal Revenue Service (the “IRS”) began its examination of the Company’s U.S. federal income tax returns for the years ended December 31, 2012 and 2013. On October 18, 2016, the IRS began its examination of the Company’s U.S. federal income tax return for the year ended December 31, 2014.

The Company is in various stages of examination with certain states and certain foreign jurisdictions. The 2012 through 2015 U.S. federal income tax returns are subject to examination by the IRS. State income tax returns are subject to examination for the 2011 through 2015 tax years.

EARNINGS PER SHARE

9 Months Ended

Sep. 30, 2016

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,
	2016	2015	2016	2015
Weighted-average shares outstanding:
Basic	190,379	205,051	198,073	184,098
Dilutive	4,052	3,043	4,020	4,033
Diluted	194,431	208,094	202,093	188,131

For the three-months ended September 30, 2016 and 2015, options and awards outstanding totaling 1.9 million shares and 1.1 million shares, respectively, were excluded from the calculations as their effect would have been antidilutive. For the nine-months ended September 30, 2016 and 2015, options and awards outstanding totaling 1.7 million shares and 0.9 million shares, respectively, were excluded from the calculations as their effect would have been antidilutive.

SEGMENT INFORMATION

9 Months Ended

Sep. 30, 2016

SEGMENT INFORMATION

SEGMENT INFORMATION

17. SEGMENT INFORMATION

During the second quarter of 2016, the Company renamed and revised its reportable segments to reflect management’s current view of the business and to align its external financial reporting with its operating and internal financial model. Historical segment information has been revised to reflect the effect of this change.

The Company has three operating and reportable segments, (i) Monster Energy® Drinks segment (“Monster Energy® Drinks”), which is comprised of the Company’s Monster Energy® drink products (previously the Finished Products segment) as well as MutantTM Super Soda drink products, (ii) Strategic Brands (“Strategic Brands”), which include the various energy drink brands acquired from TCCC as a result of the TCCC Transaction (previously the Concentrate segment) and (iii) Other, (“Other”) the principal products of which include the non-energy brands disposed of as a result of the TCCC Transaction as well as certain products acquired as part of the AFF Transaction that are sold to independent third-parties.

The Company’s Monster Energy® Drinks segment generates net operating revenues by selling ready-to-drink packaged energy drinks to full service beverage distributors, retail grocery and specialty chains, wholesalers, club stores, drug chains, mass merchandisers, convenience chains, health food distributors, food service customers and the military.

The Company’s Strategic Brands segment primarily generates net operating revenues by selling “concentrates” and/or “beverage bases” to authorized bottling and canning operations. Such bottlers generally combine the concentrates and/or beverage bases with sweeteners and water, which are then filled in authorized containers bearing the Company’s respective trademarks and sold to customers directly (or in some cases through wholesalers or other bottlers). To a lesser extent, the Company’s Strategic Brands segment generates net operating revenues by selling ready-to-drink packaged energy drinks to full service beverage distributors, retail grocery and specialty chains, wholesalers, club stores, drug chains, mass merchandisers, convenience chains, health food distributors, food service customers and the military.

Generally, the Monster Energy® Drinks segment generates higher per case net operating revenues, but lower per case gross profit margins than the Strategic Brands segment.

Corporate and unallocated amounts that do not relate to a reportable segment have been allocated to “Corporate & Unallocated.” No asset information, other than goodwill and other intangible assets, has been provided for in the Company’s reportable segments as management does not measure or allocate such assets on a segment basis.

The net revenues derived from the Company’s reportable segments and other financial information related thereto for the three- and nine-months ended September 30, 2016 and 2015 are as follows:

	Three-Months Ended				Nine-Months Ended
	September 30,				September 30,
	2016		2015		2016		2015
Net sales:
Monster Energy® Drinks(1)	$	710,130	$	686,684	$	2,075,511	$	1,933,467
Strategic Brands	72,138		69,935		207,990		82,913
Other	5,686		-		12,127		60,751
Corporate and unallocated	-		-		-		-
	$	787,954	$	756,619	$	2,295,628	$	2,077,131

	Three-Months Ended				Nine-Months Ended
	September 30,				September 30,
	2016		2015		2016		2015
Operating Income:
Monster Energy® Drinks(1) (2)	$	308,493	$	289,544	$	874,822	$	596,716
Strategic Brands	40,075		45,291		127,169		54,375
Other(3)	1,186		(283)		1,528		165,377
Corporate and unallocated	(59,379)		(43,114)		(169,909)		(151,263)
	$	290,375	$	291,438	$	833,610	$	665,205

	Three-Months Ended				Nine-Months Ended
	September 30,				September 30,
	2016		2015		2016		2015
Income before tax:
Monster Energy® Drinks(1) (2)	$	308,612	$	289,649	$	875,024	$	597,084
Strategic Brands	40,073		45,275		127,141		54,359
Other(3)	1,186		(284)		1,528		165,376
Corporate and unallocated	(60,533)		(46,564)		(170,734)		(154,758)
	$	289,338	$	288,076	$	832,959	$	662,061

(1) Includes $8.4 million and $8.2 million for the three-months ended September 30, 2016 and 2015, respectively, related to the recognition of deferred revenue. Includes $28.6 million and $54.7 million for the nine-months ended September 30, 2016 and 2015, respectively, related to the recognition of deferred revenue.

(2) Includes $4.7 million and $2.5 million for the three-months ended September 30, 2016 and 2015, respectively, related to distributor termination costs. Includes $33.4 million and $220.7 million for the nine-months ended September 30, 2016 and 2015, respectively, related to distributor termination costs.

(3) Includes $161.5 million gain on the sale of Monster Non-Energy for the nine-months ended September 30, 2015.

	Three-Months Ended				Nine-Months Ended
	September 30,				September 30,
	2016		2015		2016		2015
Depreciation and amortization:
Monster Energy® Drinks	$	5,974	$	5,408	$	17,651	$	15,556
Strategic Brands	1,777		1,757		5,325		2,102
Other	1,151		-		2,305		232
Corporate and unallocated	1,522		1,341		4,593		3,867
	$	10,424	$	8,506	$	29,874	$	21,757

	September 30, 2016		December 31, 2015
Goodwill and other intangible assets:
Monster Energy® Drinks	$	1,331,931	$	699,346
Strategic Brands	1,003,355		1,008,355
Other	29,170		-
Corporate and unallocated	-		-
	$	2,364,456	$	1,707,701

Corporate and unallocated expenses for the three-months ended September 30, 2016 include $33.2 million of payroll costs, of which $12.1 million was attributable to stock-based compensation expense (see Note 14, “Stock-Based Compensation”), as well as $16.9 million attributable to professional service expenses, including accounting and legal costs, and $9.3 million of other operating expenses. Corporate and unallocated expenses for the three-months ended September 30, 2015 include $27.1 million of payroll costs, of which $8.9 million was attributable to stock-based compensation expense (see Note 14, “Stock-Based Compensation”), as well as $10.3 million attributable to professional service expenses, including accounting and legal costs, of which $0.3 million was attributable to TCCC Transaction expenses, and $5.7 million of other operating expenses.

Corporate and unallocated expenses for the nine-months ended September 30, 2016 include $92.7 million of payroll costs, of which $33.7 million was attributable to stock-based compensation expense (see Note 14, “Stock-Based Compensation”), as well as $52.4 million attributable to professional service expenses, including accounting and legal costs, of which $4.5 million was attributable to AFF Transaction expenses, and $24.8 million of other operating expenses. Corporate and unallocated expenses for the nine-months ended September 30, 2015 include $83.9 million of payroll costs, of which $23.7 million was attributable to stock-based compensation expense (see Note 14, “Stock-Based Compensation”), as well as $46.6 million attributable to professional service expenses, including accounting and legal costs, of which $15.4 million was attributable to TCCC Transaction expenses, and $20.8 million of other operating expenses.

TCCC, through certain wholly-owned subsidiaries (the “TCCC Subsidiaries”), accounted for approximately 41% and 42% of the Company’s net sales for the three-months ended September 30, 2016 and 2015, respectively. The TCCC Subsidiaries accounted for approximately 43% and 41% of the Company’s net sales for the nine-months ended September 30, 2016 and 2015, respectively.

Net sales to customers outside the United States amounted to $190.8 million and $170.6 million for the three-months ended September 30, 2016 and 2015, respectively. Net sales to customers outside the United States amounted to $540.2 million and $435.1 million for the nine-months ended September 30, 2016 and 2015, respectively.

- 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=51669610&loc=d3e8981-108599

Reference 2: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 41
-URI http://asc.fasb.org/extlink&oid=51669610&loc=d3e9038-108599

Reference 3: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 33
-URI http://asc.fasb.org/extlink&oid=51669610&loc=d3e8971-108599

Reference 4: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 12
-URI http://asc.fasb.org/extlink&oid=51669610&loc=d3e8595-108599

Reference 5: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 1
-URI http://asc.fasb.org/extlink&oid=51669610&loc=d3e8380-108599

Reference 6: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 32
-URI http://asc.fasb.org/extlink&oid=51669610&loc=d3e8933-108599

Reference 7: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 26
-URI http://asc.fasb.org/extlink&oid=51669610&loc=d3e8844-108599

Reference 8: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 35
-URI http://asc.fasb.org/extlink&oid=51669610&loc=d3e8984-108599

Reference 9: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 40
-URI http://asc.fasb.org/extlink&oid=51669610&loc=d3e9031-108599

Reference 10: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 42
-URI http://asc.fasb.org/extlink&oid=51669610&loc=d3e9054-108599

Reference 11: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 10
-URI http://asc.fasb.org/extlink&oid=51669610&loc=d3e8538-108599

Reference 12: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 29
-URI http://asc.fasb.org/extlink&oid=51669610&loc=d3e8864-108599

Reference 13: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 31
-URI http://asc.fasb.org/extlink&oid=51669610&loc=d3e8924-108599

Reference 14: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 30
-URI http://asc.fasb.org/extlink&oid=51669610&loc=d3e8906-108599

+ Details

RELATED PARTY TRANSACTIONS

9 Months Ended

Sep. 30, 2016

RELATED PARTY TRANSACTIONS

RELATED PARTY TRANSACTIONS

18. RELATED PARTY TRANSACTIONS

As a result of the TCCC Transaction, TCCC controls more than 10% of the voting interests of the Company. TCCC, through the TCCC Subsidiaries and through certain of its affiliated companies (the “TCCC Affiliates”) purchases and distributes certain of the Company’s products both domestically and in certain international territories. The Company also pays TCCC a commission based on certain sales within the TCCC distribution network.

TCCC commissions, based on sales to the TCCC Affiliates for the three-months ended September 30, 2016 and 2015, were $8.1 million and $7.7 million, respectively. TCCC commissions, based on sales to the TCCC Affiliates for the nine-months ended September 30, 2016 and 2015, were $19.0 million and $9.4 million, respectively.

TCCC commissions, based on sales to the TCCC Subsidiaries, are accounted for as a reduction to revenue and are reported in net sales to the TCCC Subsidiaries. Net sales to the TCCC Subsidiaries for the three-months ended September 30, 2016 and 2015 were $321.9 million and $315.9 million, respectively. Net sales to the TCCC Subsidiaries for the nine-months ended September 30, 2016 and 2015 were $981.0 million and $845.8 million, respectively.

The Company also purchases concentrates from TCCC which are then sold to both the TCCC Affiliates and the TCCC Subsidiaries. Concentrate purchases from TCCC were $6.2 million and $8.0 million for the three-months ended September 30, 2016 and 2015, respectively. Concentrate purchases from TCCC were $20.9 million and $9.1 million for the nine-months ended September 30, 2016 and 2015, respectively.

Certain TCCC Subsidiaries also contract manufacture certain of the Company’s Monster Energy® brand energy drinks as well as MutantTM Super Sodas. Contract manufacturing expenses were $2.2 million and $1.8 million for the three-months ended September 30, 2016 and 2015, respectively. Contract manufacturing expenses were $6.0 million and $5.3 million for the nine-months ended September 30, 2016 and 2015, respectively.

Accounts receivable, accounts payable and accrued promotional allowances related to the TCCC Subsidiaries are as follows at:

	September 30, 2016		December 31, 2015

Accounts receivable, net	$	198,245	$	172,201
Accounts payable	$	(67,838)	$	(58,579)
Accrued promotional allowances	$	(33,586)	$	(27,544)

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, 2016 and 2015 were $0.6 million and $0.3 million, respectively. Expenses incurred with such company in connection with promotional materials purchased during the nine-months ended September 30, 2016 and 2015 were $0.9 million and $1.5 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

SUBSEQUENT EVENTS

9 Months Ended

Sep. 30, 2016

SUBSEQUENT EVENTS

SUBSEQUENT EVENTS

19. SUBSEQUENT EVENTS

On October 11, 2016, the Company filed a Certificate of Amendment to its Amended and Restated Certificate of Incorporation to increase the number of authorized shares of the Company’s common stock, par value $0.005 per share (“Common Stock”), from 240,000,000 shares to 1,250,000,000 shares.

On October 14, 2016, the Company announced that its Board of Directors approved a 3-for-1 stock split of its Common Stock to be effected in the form of a 200% stock dividend. The additional shares will be distributed on November 9, 2016 to stockholders of record at the close of business (Eastern Time) on October 26, 2016. The Company anticipates its common stock to begin trading at the split-adjusted price on November 10, 2016.

The following pro-forma earnings per share information has been adjusted retroactively to reflect the stock split:

	Three-Months Ended				Nine-Months Ended
	September 30,				September 30,
	2016		2015		2016		2015

NET INCOME	$	191,643	$	174,574	$	539,738	$	407,991

NET INCOME PER COMMON SHARE:
Basic	$	0.34	$	0.28	$	0.91	$	0.74
Diluted	$	0.33	$	0.28	$	0.89	$	0.72

WEIGHTED AVERAGE NUMBER OF SHARES OF COMMON STOCK AND COMMON STOCK EQUIVALENTS:
Basic	571,138		615,153		594,219		552,294
Diluted	583,293		624,282		606,280		564,393

ACQUISITIONS AND DIVESTITURES (Tables)

9 Months Ended

Sep. 30, 2016

ACQUISITIONS AND DIVESTITURES

Summary of AFF Transaction consideration allocation

	Identifiable Assets Acquired and Liabilities Assumed		Consideration Transferred
Intangibles - flavor formulas (non-amortizing)¹	$	618,000	$	-
Intangibles - flavor formulas (amortizing)	641		-
Intangibles - customer relationships (amortizing)	30,100		-
Intangibles - trademarks (amortizing)	500		-
Intangibles - other (amortizing)	200		-
Working capital (excluding inventory)	1,861		-
Inventory	27,600		-
Property and equipment, net	1,175		-
Favorable leases	4,480		-
Goodwill	3,928		-
Cash	-		688,485
Total	$	688,485	$	688,485

1Represents proprietary formulas for the Company’s principal products.

Summary of amounts in the escrow fund in excess of the applicable amounts

Percentage Transitioned		Escrow Release
40%		Amounts in excess of $375 million
50%		Amounts in excess of $312.5 million
60%		Amounts in excess of $250 million
70%		Amounts in excess of $187.5 million
80%		Amounts in excess of $125 million
90%		Amounts in excess of $62.5 million
95%		All remaining amounts

Schedule of pro forma condensed combined financial information

	Three-Months Ended September 30, 2015
					Pro Forma Adjustments
	Monster Beverage Corporation as reported¹		KO Energy		Disposal of Monster Non- Energy		Other		Pro Forma Combined
Net sales	$	756,619	$	-	$	-	$	-	$	756,619
Net income	174,574		-		-		180		174,754

	Nine-Months Ended September 30, 2015
					Pro Forma Adjustments
	Monster Beverage Corporation as reported²		KO Energy³		Disposal of Monster Non- Energy4		Other		Pro Forma Combined
Net sales	$	2,077,131	$	138,127	$	(60,824)	$	6,803	$	2,161,237
Net income	407,991		100,575		(101,881)		(36,487)		370,198

1 Includes net sales of $69.9 million and net income of $27.4 million (tax affected) related to the acquired KO Energy assets for the three-months ended September 30, 2015.

2 Includes net sales of $82.9 million and net income of $32.9 million (tax affected) related to the acquired KO Energy assets from June 12, 2015 (the date of acquisition) through September 30, 2015.

4 Includes results through June 12, 2015. Net income includes the gain recognized on the sale of Monster Non-Energy of $161.5 million.

Schedule of other pro-forma adjustments

	Three-Months Ended September 30, 2015		Nine-Months Ended September 30, 2015
Net sales:
Amortization of deferred revenue	$	-	$	6,803

Net income:
Amortization of deferred revenue	$	-	$	6,803
To record sales commissions	-		(15,470)
To record amortization of definite lived KO Energy intangibles	-		(3,126)
To eliminate TCCC Transaction expenses	292		15,425
Estimated provision for income taxes on pro forma adjustments	(112)		(1,398)
Estimated provision for income taxes on KO Energy income	-		(38,721)
Total	$	180	$	(36,487)

INVESTMENTS (Tables)

9 Months Ended

Sep. 30, 2016

INVESTMENTS

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

September 30, 2016	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:
Commercial paper	$	28,318	$	-	$	-	$	28,318	$	-	$	-
Municipal securities	181,843		-		222		181,621		222		-
U.S. government agency securities	26,080		1		3		26,078		3		-
Long-term:
Municipal securities	9,519		-		19		9,500		19		-

Available-for-Sale:
Short-term:
Variable rate demand notes	21,412		-		-		21,412		-		-
Total	$	267,172	$	1	$	244	$	266,929	$	244	$	-

December 31, 2015	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:
Commercial paper	$	3,978	$	-	$	-	$	3,978	$	-	$	-
Municipal securities	709,207		63		192		709,078		192		-
U.S. government agency securities	23,369		-		58		23,311		58		-
U.S. Treasuries	8,056		-		13		8,043		13		-
Long-term:
Municipal securities	11,071		-		8		11,063		8		-
U.S. government agency securities	4,277		-		25		4,252		25		-
Total	$	759,958	$	63	$	296	$	759,725	$	296	$	-

Summarizes the underlying contractual maturities of the Company's investments

	September 30, 2016				December 31, 2015
	Amortized Cost		Fair Value		Amortized Cost		Fair Value
Less than 1 year:
Commercial paper	$	28,318	$	28,318	$	3,978	$	3,978
Municipal securities	181,843		181,621		709,207		709,078
U.S. government agency securities	26,080		26,078		23,369		23,311
U.S. Treasuries	-		-		8,056		8,043
Due 1 -10 years:
Municipal securities	9,519		9,500		11,071		11,063
U.S. government agency securities	-		-		4,277		4,252
Variable rate demand notes	6,003		6,003		-		-
Due 11 - 20 years:
Variable rate demand notes	8,005		8,005		-		-
Due 21 - 30 years:
Variable rate demand notes	4,002		4,002		-		-
Due 31 - 40 years:
Variable rate demand notes	3,402		3,402		-		-
Total	$	267,172	$	266,929	$	759,958	$	759,725

FAIR VALUE OF CERTAIN FINANCIAL ASSETS AND LIABILITIES (Tables)

9 Months Ended

Sep. 30, 2016

FAIR VALUE OF CERTAIN FINANCIAL ASSETS AND LIABILITIES

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

September 30, 2016	Level 1		Level 2			Level 3		Total
Cash	$	267,056	$	-		$	-	$	267,056
Money market funds	27,784		-			-		27,784
Certificates of deposit	-		4,908			-		4,908
Commercial paper	-		43,503			-		43,503
Variable rate demand notes	-		21,412			-		21,412
Municipal securities	-		217,955			-		217,955
U.S. government agency securities	-		26,080			-		26,080
Foreign currency derivatives	-		105			-		105
Total	$	294,840	$	313,963		$	-	$	608,803

Amounts included in:
Cash and cash equivalents	$	294,840	$	46,686		$	-	$	341,526
Short-term investments	-		257,653			-		257,653
Accounts receivable, net	-		231			-		231
Investments	-		9,519			-		9,519
Accrued liabilities	-		(126		)	-		(126		)
Total	$	294,840	$	313,963		$	-	$	608,803

December 31, 2015	Level 1		Level 2			Level 3		Total
Cash	$	255,723	$	-		$	-	$	255,723
Money market funds	664,005		-			-		664,005
Certificates of deposit	-		85,007			-		85,007
Commercial paper	-		430,605			-		430,605
U.S. Treasuries	-		260,035			-		260,035
Municipal securities	-		731,744			-		731,744
U.S. government agency securities	-		508,256			-		508,256
Foreign currency derivatives	-		(217		)	-		(217		)
Total	$	919,728	$	2,015,430		$	-	$	2,935,158

Amounts included in:
Cash and cash equivalents	$	919,728	$	1,255,689		$	-	$	2,175,417
Short-term investments	-		744,610			-		744,610
Accounts receivable, net	-		371			-		371
Investments	-		15,348			-		15,348
Accrued liabilities	-		(588		)	-		(588		)
Total	$	919,728	$	2,015,430		$	-	$	2,935,158

DERIVATIVE INSTRUMENTS AND HEDGING ACTIVITIES (Tables)

9 Months Ended

Sep. 30, 2016

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, 2016
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 GBP	$	16,283	$	46	Accounts receivable, net
Receive EUR/pay USD	30,682		31		Accounts receivable, net
Receive USD/pay AUD	17,978		63		Accounts receivable, net
Receive USD/pay ZAR	19,861		65		Accounts receivable, net
Receive USD/pay BRL	3,046		26		Accounts receivable, net


Liabilities:
Foreign currency exchange contracts:
Receive CAD/pay USD	$	20,609	$	(14)	Accrued liabilities
Receive USD/pay MXN	27,360		(65)		Accrued liabilities
Receive USD/pay NZD	3,119		(11)		Accrued liabilities
Receive USD/pay SEK	1,856		(1)		Accrued liabilities
Receive USD/pay CLP	3,435		(10)		Accrued liabilities
Receive USD/pay COP	2,041		(21)		Accrued liabilities
Receive SGD/pay USD	2,571		(4)		Accrued liabilities

December 31, 2015
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 GBP	$	18,146	$	168	Accounts receivable, net
Receive USD/pay ZAR	17,411		144		Accounts receivable, net
Receive USD/pay RUB	2,173		9		Accounts receivable, net
Receive USD/pay BRL	2,478		49		Accounts receivable, net
Receive USD/pay COP	1,351		1		Accounts receivable, net


Liabilities:
Foreign currency exchange contracts:
Receive EUR/pay USD	$	39,578	$	(429)	Accrued liabilities
Receive USD/pay AUD	14,040		(82)		Accrued liabilities
Receive USD/pay CAD	2,804		(15)		Accrued liabilities
Receive USD/pay JPY	2,495		(2)		Accrued liabilities
Receive USD/pay MXN	8,122		(15)		Accrued liabilities
Receive SGD/pay USD	3,837		(30)		Accrued liabilities
Receive USD/pay NZD	1,978		(3)		Accrued liabilities
Receive USD/pay CLP	3,519		(12)		Accrued liabilities

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

		Amount of gain (loss) recognized in income on derivatives
		Three-months ended
Derivatives not designated as hedging instruments under FASB ASC 815-20	Location of gain (loss) recognized in income on derivatives	September 30, 2016		September 30, 2015
Foreign currency exchange contracts	Interest and other expense, net	$	(882)	$	3,552

		Amount of gain (loss) recognized in income on derivatives
		Nine-months ended
Derivatives not designated as hedging instruments under FASB ASC 815-20	Location of gain (loss) recognized in income on derivatives	September 30, 2016		September 30, 2015
Foreign currency exchange contracts	Interest and other expense, net	$	(424)	$	1,634

INVENTORIES (Tables)

9 Months Ended

Sep. 30, 2016

INVENTORIES

Schedule of inventories

	September 30, 2016		December 31, 2015
Raw materials	$	68,860	$	52,043
Finished goods	98,980		104,078
	$	167,840	$	156,121

PROPERTY AND EQUIPMENT, NET (Tables)

9 Months Ended

Sep. 30, 2016

PROPERTY AND EQUIPMENT, NET

Schedule of property and equipment

	September 30, 2016		December 31, 2015
Land	$	46,597	$	6,792
Leasehold improvements	2,726		2,804
Furniture and fixtures	3,607		3,551
Office and computer equipment	11,538		11,080
Computer software	3,203		2,530
Equipment	107,704		93,465
Buildings	41,943		39,848
Vehicles	31,737		29,804
	249,055		189,874
Less: accumulated depreciation and amortization	(104,430)		(92,520)
	$	144,625	$	97,354

GOODWILL AND OTHER INTANGIBLE ASSETS (Tables)

9 Months Ended

Sep. 30, 2016

GOODWILL AND OTHER INTANGIBLE ASSETS.

Schedule of Goodwill

	Monster Energy® Drinks		Strategic Brands		Other		Total
Balance at December 31, 2015	$	641,716	$	637,999	$	-	$	1,279,715
Acquisitions	3,928		-		-		3,928
Balance at September 30, 2016	$	645,644	$	637,999	$	-	$	1,283,643

Schedule of intangibles

	September 30, 2016		December 31, 2015
Amortizing intangibles	$	71,227	$	35,263
Accumulated amortization	(11,574)		(3,899)
	59,653		31,364
Non-amortizing intangibles	1,021,160		396,622
	$	1,080,813	$	427,986

ACCUMULATED OTHER COMPREHENSIVE LOSS (Tables)

9 Months Ended

Sep. 30, 2016

ACCUMULATED OTHER COMPREHENSIVE LOSS.

Changes in accumulated other comprehensive loss by component, after tax

	Currency Translation Losses

Balance at December 31, 2015	$	21,878
Other comprehensive (gain) before reclassifications	-
Amounts reclassified from accumulated other comprehensive loss	-
Net current-period other comprehensive (gain)	(7,344)
Balance at September 30, 2016	$	14,534

STOCK-BASED COMPENSATION (Tables)

9 Months Ended

Sep. 30, 2016

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,
	2016	2015	2016	2015
Dividend yield	0.0%	0.0%	0.0%	0.0%
Expected volatility	36.3%	36.7%	36.1%	37.1%
Risk-free interest rate	1.1%	1.5%	1.4%	1.6%
Expected term	6.4 years	6.1 years	6.3 years	5.8 years

Summary of Company's activities with respect to its stock option plans

Options	Number of Shares (In thousands)	Weighted- Average Exercise Price Per Share		Weighted- Average Remaining Contractual Term (In years)	Aggregate Intrinsic Value
Outstanding at January 1, 2016	6,590	$	50.85	5.6	$	646,497
Granted 01/01/16 - 03/31/16	961	$	132.06
Granted 04/01/16 - 06/30/16	219	$	138.53
Granted 07/01/16 - 09/30/16	14	$	157.80
Exercised	(284)	$	37.34
Cancelled or forfeited	(88)	$	98.28
Outstanding at September 30, 2016	7,412	$	64.14	5.6	$	613,113
Vested and expected to vest in the future at September 30, 2016	7,011	$	60.94	5.4	$	602,318
Exercisable at September 30, 2016	4,359	$	31.77	3.7	$	501,457

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

	Number of Shares (in thousands)	Weighted Average Grant-Date Fair Value
Non-vested at January 1, 2016	178	$	99.58
Granted 01/01/16- 03/31/16	82	$	131.96
Granted 04/01/16- 06/30/16	12	$	148.94
Granted 07/01/16- 09/30/16	-	$	-
Vested	(81)	$	95.62
Forfeited/cancelled	(1)	$	57.45
Non-vested at September 30, 2016	190	$	118.68

INCOME TAXES (Tables)

9 Months Ended

Sep. 30, 2016

INCOME TAXES

Schedule of roll-forward of the Company's total gross unrecognized tax benefits, not including interest and penalties

	Gross Unrecognized Tax Benefits
Balance at December 31, 2015	$	471
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	(462)
Balance at September 30, 2016	$	9

EARNINGS PER SHARE (Tables)

9 Months Ended

Sep. 30, 2016

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,
	2016	2015	2016	2015
Weighted-average shares outstanding:
Basic	190,379	205,051	198,073	184,098
Dilutive	4,052	3,043	4,020	4,033
Diluted	194,431	208,094	202,093	188,131

SEGMENT INFORMATION (Tables)

9 Months Ended

Sep. 30, 2016

SEGMENT INFORMATION

Schedule of net revenues and other financial information by segment

	Three-Months Ended				Nine-Months Ended
	September 30,				September 30,
	2016		2015		2016		2015
Net sales:
Monster Energy® Drinks(1)	$	710,130	$	686,684	$	2,075,511	$	1,933,467
Strategic Brands	72,138		69,935		207,990		82,913
Other	5,686		-		12,127		60,751
Corporate and unallocated	-		-		-		-
	$	787,954	$	756,619	$	2,295,628	$	2,077,131

	Three-Months Ended				Nine-Months Ended
	September 30,				September 30,
	2016		2015		2016		2015
Operating Income:
Monster Energy® Drinks(1) (2)	$	308,493	$	289,544	$	874,822	$	596,716
Strategic Brands	40,075		45,291		127,169		54,375
Other(3)	1,186		(283)		1,528		165,377
Corporate and unallocated	(59,379)		(43,114)		(169,909)		(151,263)
	$	290,375	$	291,438	$	833,610	$	665,205

	Three-Months Ended				Nine-Months Ended
	September 30,				September 30,
	2016		2015		2016		2015
Income before tax:
Monster Energy® Drinks(1) (2)	$	308,612	$	289,649	$	875,024	$	597,084
Strategic Brands	40,073		45,275		127,141		54,359
Other(3)	1,186		(284)		1,528		165,376
Corporate and unallocated	(60,533)		(46,564)		(170,734)		(154,758)
	$	289,338	$	288,076	$	832,959	$	662,061

(3) Includes $161.5 million gain on the sale of Monster Non-Energy for the nine-months ended September 30, 2015.

	Three-Months Ended				Nine-Months Ended
	September 30,				September 30,
	2016		2015		2016		2015
Depreciation and amortization:
Monster Energy® Drinks	$	5,974	$	5,408	$	17,651	$	15,556
Strategic Brands	1,777		1,757		5,325		2,102
Other	1,151		-		2,305		232
Corporate and unallocated	1,522		1,341		4,593		3,867
	$	10,424	$	8,506	$	29,874	$	21,757

	September 30, 2016		December 31, 2015
Goodwill and other intangible assets:
Monster Energy® Drinks	$	1,331,931	$	699,346
Strategic Brands	1,003,355		1,008,355
Other	29,170		-
Corporate and unallocated	-		-
	$	2,364,456	$	1,707,701

RELATED PARTY TRANSACTIONS (Tables)

9 Months Ended

Sep. 30, 2016

RELATED PARTY TRANSACTIONS

Schedule of related party transactions

	September 30, 2016		December 31, 2015

Accounts receivable, net	$	198,245	$	172,201
Accounts payable	$	(67,838)	$	(58,579)
Accrued promotional allowances	$	(33,586)	$	(27,544)

SUBSEQUENT EVENTS (Tables)

9 Months Ended

Sep. 30, 2016

SUBSEQUENT EVENTS

Schedule of pro forma earnings per share

	Three-Months Ended				Nine-Months Ended
	September 30,				September 30,
	2016		2015		2016		2015

NET INCOME	$	191,643	$	174,574	$	539,738	$	407,991

NET INCOME PER COMMON SHARE:
Basic	$	0.34	$	0.28	$	0.91	$	0.74
Diluted	$	0.33	$	0.28	$	0.89	$	0.72

WEIGHTED AVERAGE NUMBER OF SHARES OF COMMON STOCK AND COMMON STOCK EQUIVALENTS:
Basic	571,138		615,153		594,219		552,294
Diluted	583,293		624,282		606,280		564,393

BASIS OF PRESENTATION (Details) - USD ($) $ in Thousands	Sep. 30, 2016	Dec. 31, 2015
Change in Accounting Estimate [Line Items]
Prepaid income taxes	$ 155,641	$ 18,462
DEFERRED INCOME TAXES	142,116	140,468
Income taxes payable	$ 5,835	2,750
Prepaid income taxes, deferred taxes and income taxes payable
Change in Accounting Estimate [Line Items]
Prepaid income taxes		16,900
DEFERRED INCOME TAXES		(120,800)
Income taxes payable		$ (103,900)

ACQUISITION AND DIVESTITURES - AFF Transaction (Details) - USD ($) $ in Thousands		9 Months Ended
	Apr. 02, 2016	Sep. 30, 2016	Dec. 31, 2015
Identifiable Assets Acquired and Liabilities Assumed
Goodwill		$ 1,283,643	$ 1,279,715
Consideration Transferred
Cash		$ 688,485
American Fruits & Flavors ("AFF")
Identifiable Assets Acquired and Liabilities Assumed
Working capital (excluding inventory)	$ 1,861
Inventories	27,600
Property and equipment, net	1,175
Favorable leases	4,480
Goodwill	3,928
Total	688,485
Consideration Transferred
Cash	688,485
Total	688,485
American Fruits & Flavors ("AFF") \| Flavor formulas
Identifiable Assets Acquired and Liabilities Assumed
Intangibles (amortizing)	641
American Fruits & Flavors ("AFF") \| Customer relationships
Identifiable Assets Acquired and Liabilities Assumed
Intangibles (amortizing)	30,100
American Fruits & Flavors ("AFF") \| Trademarks
Identifiable Assets Acquired and Liabilities Assumed
Intangibles (amortizing)	500
American Fruits & Flavors ("AFF") \| Other
Identifiable Assets Acquired and Liabilities Assumed
Intangibles (amortizing)	200
American Fruits & Flavors ("AFF") \| Flavor formulas
Identifiable Assets Acquired and Liabilities Assumed
Intangibles (non-amortizing)	$ 618,000

ACQUISITIONS AND DIVESTITURES - TCCC Transaction (Details) - Coca-Cola Transaction Asset Transfer Agreement - TCCC $ in Millions		9 Months Ended
	Jun. 12, 2015 USD ($) item shares	Sep. 30, 2016	Sep. 30, 2015 shares
Noncash or Part Noncash Acquisitions [Line Items]
Number of shares issued for acquisition \| shares	34,040,534		11,800,000
Ownership interest (as a percent)	16.70%
Number of individuals appointed as directors \| item	2
Cash consideration received	$ 2,150.0
Amount held in escrow	$ 125.0
Percentage of target sales transitioned		89.00%
40% Target
Noncash or Part Noncash Acquisitions [Line Items]
Percentage of target sales	40.00%
Escrow Release	$ 375.0
50% Target
Noncash or Part Noncash Acquisitions [Line Items]
Percentage of target sales	50.00%
Escrow Release	$ 312.5
60% Target
Noncash or Part Noncash Acquisitions [Line Items]
Percentage of target sales	60.00%
Escrow Release	$ 250.0
70% Target
Noncash or Part Noncash Acquisitions [Line Items]
Percentage of target sales	70.00%
Escrow Release	$ 187.5
80% Target
Noncash or Part Noncash Acquisitions [Line Items]
Percentage of target sales	80.00%
Escrow Release	$ 125.0
90% Target
Noncash or Part Noncash Acquisitions [Line Items]
Percentage of target sales	90.00%
Escrow Release	$ 62.5
95% Target
Noncash or Part Noncash Acquisitions [Line Items]
Percentage of target sales	95.00%

ACQUISITIONS AND DIVESTITURES - Proforma Financial Information (Details) - USD ($) $ in Thousands	3 Months Ended		4 Months Ended	9 Months Ended
	Sep. 30, 2016	Sep. 30, 2015	Sep. 30, 2015	Sep. 30, 2016	Sep. 30, 2015
Noncash or Part Noncash Acquisitions [Line Items]
Net sales	$ 787,954	$ 756,619		$ 2,295,628	$ 2,077,131
Net income	191,643	174,574		539,738	407,991
Gain on sale of Monster Non-Energy					161,470
Business Acquisition, Pro Forma Information [Abstract]
Amortization of Intangible Assets	$ 3,000	1,800		$ 7,700	2,100
Federal statutory rate (as a percent)				38.50%
Disposal of Monster Non-Energy
Noncash or Part Noncash Acquisitions [Line Items]
Gain on sale of Monster Non-Energy		161,500
Coca-Cola Transaction Asset Transfer Agreement \| TCCC
Noncash or Part Noncash Acquisitions [Line Items]
Net sales		756,619			2,077,131
Net income		174,574			407,991
Coca-Cola Transaction Asset Transfer Agreement \| TCCC \| Pro Forma
Noncash or Part Noncash Acquisitions [Line Items]
Net sales		756,619			2,161,237
Net income		174,754			370,198
Coca-Cola Transaction Asset Transfer Agreement \| TCCC \| KO Energy
Noncash or Part Noncash Acquisitions [Line Items]
Net sales			$ 82,900
Net income			$ 32,900
Coca-Cola Transaction Asset Transfer Agreement \| TCCC \| Disposal of Monster Non-Energy
Noncash or Part Noncash Acquisitions [Line Items]
Net sales					(60,824)
Net income					(101,881)
Coca-Cola Transaction Asset Transfer Agreement \| TCCC \| Other
Noncash or Part Noncash Acquisitions [Line Items]
Net sales					6,803
Net income		180			(36,487)
Business Acquisition, Pro Forma Information [Abstract]
Amortization of deferred revenue					6,803
To record sales commissions					(15,470)
Amortization of Intangible Assets					3,126
To eliminate TCCC Transaction expense		292			15,425
Estimated provision for income taxes on pro forma adjustments		(112)			(1,398)
Estimated provision for income taxes on KO Energy income					(38,721)
Total		180			(36,487)
Coca-Cola Transaction Asset Transfer Agreement \| TCCC \| KO Energy
Noncash or Part Noncash Acquisitions [Line Items]
Net sales		69,900			138,127
Net income		$ 27,400			$ 100,575

RECENT ACCOUNTING PRONOUNCEMENTS (Details) - Accounting Standards Update 2016-09: Simplifying the accounting for share-based compensation - Adjustments for New Accounting Principle - USD ($) $ in Millions	3 Months Ended	9 Months Ended
	Sep. 30, 2016	Sep. 30, 2016	Sep. 30, 2015
RECENT ACCOUNTING PRONOUNCEMENTS
Net cash provided by operating activities			$ 303.9
Net cash used in financing activities			$ 303.9
Excess tax benefit from stock based compensation	$ 3.5	$ 7.1

INVESTMENTS - HTM & AFS (Details) - USD ($) $ in Thousands	Sep. 30, 2016	Dec. 31, 2015
Held-to-Maturity
Amortized Cost	$ 267,172
Gross Unrealized Holding Gains	1
Gross Unrealized Holding Losses	244
Fair Value	266,929
Continuous Unrealized Loss Position less than 12 Months	244
Held to Maturity and Available-for-sale
Held to maturity and available-for-sale securities, Amortized Cost		$ 759,958
Held to maturity and available-for-sale securities, Gross Unrealized Holding Gains		63
Held to maturity and available-for-sale securities, Gross Unrealized Holding Losses		296
Held to maturity and available-for-sale securities, Fair Value		759,725
Held to maturity and available-for-sale securities, Continuous Unrealized Loss Position less than 12 Months		296
Short-term \| Commercial paper
Held-to-Maturity
Amortized Cost	28,318	3,978
Fair Value	28,318	3,978
Short-term \| Municipal securities
Held-to-Maturity
Amortized Cost	181,843	709,207
Gross Unrealized Holding Gains		63
Gross Unrealized Holding Losses	222	192
Fair Value	181,621	709,078
Continuous Unrealized Loss Position less than 12 Months	222	192
Short-term \| U.S. government agency securities
Held-to-Maturity
Amortized Cost	26,080	23,369
Gross Unrealized Holding Gains	1
Gross Unrealized Holding Losses	3	58
Fair Value	26,078	23,311
Continuous Unrealized Loss Position less than 12 Months	3	58
Short-term \| Variable rate demand notes
Available-for-sale
Amortized Cost	21,412
Fair Value	21,412
Short-term \| U.S. Treasuries
Held-to-Maturity
Amortized Cost		8,056
Gross Unrealized Holding Losses		13
Fair Value		8,043
Continuous Unrealized Loss Position less than 12 Months		13
Long-term \| Municipal securities
Held-to-Maturity
Amortized Cost	9,519	11,071
Gross Unrealized Holding Losses	19	8
Fair Value	9,500	11,063
Continuous Unrealized Loss Position less than 12 Months	$ 19	8
Long-term \| U.S. government agency securities
Held-to-Maturity
Amortized Cost		4,277
Gross Unrealized Holding Losses		25
Fair Value		4,252
Continuous Unrealized Loss Position less than 12 Months		$ 25

INVESTMENTS - Major Type - Maturity Period (Details) - USD ($) $ in Thousands	Sep. 30, 2016	Dec. 31, 2015
Investments
Amortized Cost	$ 267,172	$ 759,958
Fair Value	266,929	759,725
Commercial paper \| Less than 1 year
Investments
Amortized Cost	28,318	3,978
Fair Value	28,318	3,978
Municipal securities \| Less than 1 year
Investments
Amortized Cost	181,843	709,207
Fair Value	181,621	709,078
Municipal securities \| Due 1 - 10 years
Investments
Amortized Cost	9,519	11,071
Fair Value	9,500	11,063
U.S. government agency securities \| Less than 1 year
Investments
Amortized Cost	26,080	23,369
Fair Value	26,078	23,311
U.S. government agency securities \| Due 1 - 10 years
Investments
Amortized Cost		4,277
Fair Value		4,252
U.S. Treasuries \| Less than 1 year
Investments
Amortized Cost		8,056
Fair Value		$ 8,043
Variable rate demand notes \| Due 1 - 10 years
Investments
Amortized Cost	6,003
Fair Value	6,003
Variable rate demand notes \| Due 11 - 20 years
Investments
Amortized Cost	8,005
Fair Value	8,005
Variable rate demand notes \| Due 21 - 30 years
Investments
Amortized Cost	4,002
Fair Value	4,002
Variable rate demand notes \| Due 31 - 40 years
Investments
Amortized Cost	3,402
Fair Value	$ 3,402

FAIR VALUE OF CERTAIN FINANCIAL ASSETS AND LIABILITIES - Assets - Recurring Basis (Details) - USD ($) $ in Thousands	9 Months Ended	12 Months Ended
	Sep. 30, 2016	Dec. 31, 2015	Sep. 30, 2015	Dec. 31, 2014
Fair value amounts included in the carrying value of
Cash and cash equivalents	$ 341,526	$ 2,175,417	$ 1,240,717	$ 370,323
Short-term investments	257,653	744,610
Investments	9,519	15,348
Asset transfers between Level 1 and Level 2 measurements	0	0
Total fair value
Fair value amounts included in the carrying value of
Cash and cash equivalents	341,526	2,175,417
Short-term investments	257,653	744,610
Accounts receivable, net	231	371
Investments	9,519	15,348
Accrued liabilities	(126)	(588)
Assets measured at fair value	608,803	2,935,158
Cash	267,056	255,723
Foreign currency derivatives	105	(217)
Money market funds \| Total fair value
Fair value amounts included in the carrying value of
Assets measured at fair value	27,784	664,005
Certificates of deposit \| Total fair value
Fair value amounts included in the carrying value of
Assets measured at fair value	4,908	85,007
Commercial paper \| Total fair value
Fair value amounts included in the carrying value of
Assets measured at fair value	43,503	430,605
Variable rate demand notes \| Total fair value
Fair value amounts included in the carrying value of
Assets measured at fair value	21,412
U.S. Treasuries \| Total fair value
Fair value amounts included in the carrying value of
Assets measured at fair value		260,035
Municipal securities \| Total fair value
Fair value amounts included in the carrying value of
Assets measured at fair value	217,955	731,744
U.S. government agency securities \| Total fair value
Fair value amounts included in the carrying value of
Assets measured at fair value	26,080	508,256
Level 1
Fair value amounts included in the carrying value of
Cash and cash equivalents	294,840	919,728
Assets measured at fair value	294,840	919,728
Cash	267,056	255,723
Level 1 \| Money market funds
Fair value amounts included in the carrying value of
Assets measured at fair value	27,784	664,005
Level 2
Fair value amounts included in the carrying value of
Cash and cash equivalents	46,686	1,255,689
Short-term investments	257,653	744,610
Accounts receivable, net	231	371
Investments	9,519	15,348
Accrued liabilities	(126)	(588)
Assets measured at fair value	313,963	2,015,430
Foreign currency derivatives	105	(217)
Level 2 \| Certificates of deposit
Fair value amounts included in the carrying value of
Assets measured at fair value	4,908	85,007
Level 2 \| Commercial paper
Fair value amounts included in the carrying value of
Assets measured at fair value	43,503	430,605
Level 2 \| Variable rate demand notes
Fair value amounts included in the carrying value of
Assets measured at fair value	21,412
Level 2 \| U.S. Treasuries
Fair value amounts included in the carrying value of
Assets measured at fair value		260,035
Level 2 \| Municipal securities
Fair value amounts included in the carrying value of
Assets measured at fair value	217,955	731,744
Level 2 \| U.S. government agency securities
Fair value amounts included in the carrying value of
Assets measured at fair value	$ 26,080	$ 508,256

DERIVATIVE INSTRUMENTS AND HEDGING ACTIVITIES - Notional Amount and Fair Value (Details) - USD ($) $ in Thousands	9 Months Ended
	Sep. 30, 2016	Dec. 31, 2015
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 GBP \| Accounts receivable, net.
Derivative Instruments and Hedging Activities
Notional amount, Assets	$ 16,283	$ 18,146
Fair Value, Assets	46	168
Derivatives not designated as hedging instruments \| Receive EUR/pay USD \| Accounts receivable, net.
Derivative Instruments and Hedging Activities
Notional amount, Assets	30,682
Fair Value, Assets	31
Derivatives not designated as hedging instruments \| Receive EUR/pay USD \| Accrued liabilities
Derivative Instruments and Hedging Activities
Notional amount, Liabilities		39,578
Fair Value, Liabilities		(429)
Derivatives not designated as hedging instruments \| Receive USD/pay AUD \| Accounts receivable, net.
Derivative Instruments and Hedging Activities
Notional amount, Assets	17,978
Fair Value, Assets	63
Derivatives not designated as hedging instruments \| Receive USD/pay AUD \| Accrued liabilities
Derivative Instruments and Hedging Activities
Notional amount, Liabilities		14,040
Fair Value, Liabilities		(82)
Derivatives not designated as hedging instruments \| Receive USD/pay ZAR \| Accounts receivable, net.
Derivative Instruments and Hedging Activities
Notional amount, Assets	19,861	17,411
Fair Value, Assets	65	144
Derivatives not designated as hedging instruments \| Receive USD/pay BRL \| Accounts receivable, net.
Derivative Instruments and Hedging Activities
Notional amount, Assets	3,046	2,478
Fair Value, Assets	26	49
Derivatives not designated as hedging instruments \| Receive CAD/pay USD \| Accrued liabilities
Derivative Instruments and Hedging Activities
Notional amount, Liabilities	20,609
Fair Value, Liabilities	(14)
Derivatives not designated as hedging instruments \| Receive USD/pay MXN \| Accrued liabilities
Derivative Instruments and Hedging Activities
Notional amount, Liabilities	27,360	8,122
Fair Value, Liabilities	(65)	(15)
Derivatives not designated as hedging instruments \| Receive USD/Pay NZD \| Accrued liabilities
Derivative Instruments and Hedging Activities
Notional amount, Liabilities	3,119	1,978
Fair Value, Liabilities	(11)	(3)
Derivatives not designated as hedging instruments \| Receive USD/pay SEK \| Accrued liabilities
Derivative Instruments and Hedging Activities
Notional amount, Liabilities	1,856
Fair Value, Liabilities	(1)
Derivatives not designated as hedging instruments \| Receive USD/pay CLP \| Accrued liabilities
Derivative Instruments and Hedging Activities
Notional amount, Liabilities	3,046	3,519
Fair Value, Liabilities	(10)	(12)
Derivatives not designated as hedging instruments \| Receive USD/pay COP \| Accounts receivable, net.
Derivative Instruments and Hedging Activities
Notional amount, Assets		1,351
Fair Value, Assets		1
Derivatives not designated as hedging instruments \| Receive USD/pay COP \| Accrued liabilities
Derivative Instruments and Hedging Activities
Notional amount, Liabilities	3,435
Fair Value, Liabilities	(21)
Derivatives not designated as hedging instruments \| Receive SGD/Pay USD \| Accrued liabilities
Derivative Instruments and Hedging Activities
Notional amount, Liabilities	2,571	3,837
Fair Value, Liabilities	$ (4)	(30)
Derivatives not designated as hedging instruments \| Receive USD/pay RUB \| Accounts receivable, net.
Derivative Instruments and Hedging Activities
Notional amount, Assets		2,173
Fair Value, Assets		9
Derivatives not designated as hedging instruments \| Receive USD/pay JPY \| Accrued liabilities
Derivative Instruments and Hedging Activities
Notional amount, Liabilities		2,495
Fair Value, Liabilities		(2)
Derivatives not designated as hedging instruments \| Receive USD/pay CAD \| Accrued liabilities
Derivative Instruments and Hedging Activities
Notional amount, Liabilities		2,804
Fair Value, Liabilities		$ (15)

DERIVATIVE INSTRUMENTS AND HEDGING ACTIVITIES - Nonhedging Designation (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2016	Sep. 30, 2015	Sep. 30, 2016	Sep. 30, 2015
Derivatives not designated as hedging instruments \| Foreign currency exchange contracts \| Interest and other expense, net
Net gains (losses) on derivative instruments
Amount of gain (loss) recognized in income on derivatives	$ (882)	$ 3,552	$ (424)	$ 1,634

INVENTORIES (Details) - USD ($) $ in Thousands	Sep. 30, 2016	Dec. 31, 2015
INVENTORIES
Raw materials	$ 68,860	$ 52,043
Finished goods	98,980	104,078
Inventories, net	$ 167,840	$ 156,121

PROPERTY AND EQUIPMENT, NET (Details) $ in Thousands	1 Months Ended
PROPERTY AND EQUIPMENT, NET (Details) $ in Thousands	Sep. 30, 2016 USD ($) ft² a	Dec. 31, 2015 USD ($)
Property and equipment, net
Property and equipment, gross	$ 249,055	$ 189,874
Less: accumulated depreciation and amortization	(104,430)	(92,520)
Property and equipment, net	144,625	97,354
Land
Property and equipment, net
Property and equipment, gross	$ 46,597	6,792
Area of Land \| a	49
Payments to Acquire Land	$ 39,100
Leasehold improvements
Property and equipment, net
Property and equipment, gross	2,726	2,804
Furniture and fixtures
Property and equipment, net
Property and equipment, gross	3,607	3,551
Office and computer equipment
Property and equipment, net
Property and equipment, gross	11,538	11,080
Computer software
Property and equipment, net
Property and equipment, gross	3,203	2,530
Equipment
Property and equipment, net
Property and equipment, gross	107,704	93,465
Building
Property and equipment, net
Property and equipment, gross	$ 41,943	39,848
Building \| Warehouse and distribution
Property and equipment, net
Area of Land \| ft²	1,000,000
Vehicles
Property and equipment, net
Property and equipment, gross	$ 31,737	$ 29,804

GOODWILL AND OTHER INTANGIBLES ASSETS (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2016	Sep. 30, 2015	Sep. 30, 2016	Sep. 30, 2015	Dec. 31, 2015
Goodwill
Goodwill, Beginning Balance			$ 1,279,715
Acquisitions			3,928
Goodwill, Ending Balance	$ 1,283,643		1,283,643
Amortizing intangibles	71,227		71,227		$ 35,263
Accumulated amortization	(11,574)		(11,574)		(3,899)
Amortizing intangibles, net	59,653		59,653		31,364
Non-amortizing intangibles	1,021,160		1,021,160		396,622
Intangible, net	1,080,813		1,080,813		$ 427,986
Amortization expense	3,000	$ 1,800	$ 7,700	$ 2,100
Minimum
Goodwill
Useful life of intangible assets			5 years	5 years
Maximum
Goodwill
Useful life of intangible assets			7 years	7 years
Monster Energy Drinks
Goodwill
Goodwill, Beginning Balance			$ 641,716
Acquisitions			3,928
Goodwill, Ending Balance	645,644		645,644
Strategic Brands
Goodwill
Goodwill, Beginning Balance			637,999
Acquisitions
Goodwill, Ending Balance	$ 637,999		$ 637,999

DISTRIBUTION AGREEMENTS (Details) - USD ($) $ in Millions	3 Months Ended		9 Months Ended		15 Months Ended
DISTRIBUTION AGREEMENTS (Details) - USD ($) $ in Millions	Sep. 30, 2016	Sep. 30, 2015	Sep. 30, 2016	Sep. 30, 2015	Sep. 30, 2016
DISTRIBUTION AGREEMENTS
Termination costs	$ 4.7	$ 2.5	$ 33.4	$ 220.7
Distribution agreement, revenue recognition period			20 years
Revenue recognized	8.4	8.2	$ 28.6	54.7
Amortization of deferred revenue	$ 0.0	$ 0.0	$ 5.0	$ 39.8	$ 0.0

COMMITMENTS AND CONTINGENCIES - Operating Leases (Details) $ in Millions	1 Months Ended		9 Months Ended
	Sep. 30, 2016 USD ($) ft² a	Jul. 31, 2016 USD ($) ft²	Sep. 30, 2016 USD ($) ft² a
Commitments and Contingencies
Aggregate contractual obligations	$ 140.9		$ 140.9
Aggregate operating lease commitments	$ 18.6		$ 18.6
Land
Commitments and Contingencies
Acres of land \| a	49		49
Purchase Agreement \| Building and Building Improvements
Commitments and Contingencies
Area of real estate property \| ft²	1,000,000	75,425	1,000,000
Purchase agreement to acquire real estate property		$ 12.6
Purchase Agreement \| Land
Commitments and Contingencies
Acres of land \| a	49		49
Purchase agreement to acquire real estate property	$ 39.1
Guaranteed Maximum Purchase Price	$ 36.8
Raw material items
Commitments and Contingencies
Purchase Commitments			$ 55.0
Period over which obligations will be paid			1 year

COMMITMENTS AND CONTINGENCIES - Loss Contingencies (Details) $ in Millions	Sep. 30, 2016 USD ($)
COMMITMENTS AND CONTINGENCIES
Accrued loss contingencies	$ 2.1

ACCUMULATED OTHER COMPREHENSIVE LOSS (Details) $ in Thousands	9 Months Ended
	Sep. 30, 2016 USD ($)
Components of accumulated other comprehensive loss:
Balance	$ 4,809,410
Balance	3,398,400
Currency Translation Losses
Components of accumulated other comprehensive loss:
Balance	21,878
Net current-period other comprehensive (gain)	(7,344)
Balance	$ 14,534

TREASURY STOCK (Details) - USD ($) $ / shares in Units, $ in Thousands		2 Months Ended	3 Months Ended	9 Months Ended
	Jun. 15, 2016	Sep. 30, 2016	Sep. 30, 2016	Sep. 30, 2016	Sep. 30, 2015	Aug. 02, 2016	Apr. 28, 2016
Equity, Class of Treasury Stock [Line Items]
Cash paid for repurchase of common stock				$ 2,002,441	$ 758,974
Number of shares repurchased of common stock from employees in lieu of cash or withholding taxes due			1,200
Cash payment for repurchase of common stock from employees in lieu of cash or withholding taxes due			$ 200
August 2016 Repurchase Plan
Equity, Class of Treasury Stock [Line Items]
Stock repurchase program, authorized amount						$ 250,000
Common stock repurchased (in shares)		100,000		0
Average purchase price (in dollars per share)		$ 142.77
Existing share repurchase program
Equity, Class of Treasury Stock [Line Items]
Stock repurchase program, authorized amount							$ 2,000,000
Common stock repurchased (in shares)	12,820,512
Average purchase price (in dollars per share)	$ 156.00
Cash paid for repurchase of common stock	$ 2,000,000

STOCK-BASED COMPENSATION - Stock Options (Details) $ in Millions	3 Months Ended		9 Months Ended
	Sep. 30, 2016 USD ($)	Sep. 30, 2015 USD ($)	Sep. 30, 2016 USD ($) plan	Sep. 30, 2015 USD ($)
Stock-based compensation
Stock-based compensation plans \| plan			2
Compensation expense on share-based plans	$ 12.1	$ 8.9	$ 33.7	$ 23.7
Stock options
Stock-based compensation
Excess tax benefit realized for tax deductions from non-qualified stock option exercises and disqualifying dispositions of incentive stock options	3.5	3.6	7.1	303.9
Adjustments for New Accounting Principle \| Accounting Standards Update 2016-09: Simplifying the accounting for share-based compensation
Stock-based compensation
Excess tax benefit from stock based compensation	$ 3.5		$ 7.1
Adjustments to additional paid-in-capital, benefit associated with share-based compensation		$ 3.6		$ 303.9

STOCK-BASED COMPENSATION - Fair Value Assumptions (Details) - Stock options - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands	3 Months Ended				9 Months Ended		12 Months Ended
	Sep. 30, 2016	Jun. 30, 2016	Mar. 31, 2016	Sep. 30, 2015	Sep. 30, 2016	Sep. 30, 2015	Dec. 31, 2015
Weighted-average assumptions used to estimate the fair value of options granted
Dividend yield (as a percent)	0.00%			0.00%	0.00%	0.00%
Expected volatility (as a percent)	36.30%			36.70%	36.10%	37.10%
Risk-free interest rate (as a percent)	1.10%			1.50%	1.40%	1.60%
Expected term	6 years 4 months 24 days			6 years 1 month 6 days	6 years 3 months 18 days	5 years 9 months 18 days
Stock Options, Number of Shares
Balance at the beginning of the period (in shares)			6,590		6,590
Granted (in shares)	(14)	219	961
Exercised (in shares)					(284)
Cancelled or forfeited (in shares)					(88)
Balance at the end of the period (in shares)	7,412				7,412		6,590
Vested and expected to vest in the future at the end of the period (in shares)	7,011				7,011
Exercisable at the end of the period (in shares)	4,359				4,359
Stock options, Weighted-Average Exercise Price Per Share
Balance at the beginning of the period (in dollars per share)			$ 50.85		$ 50.85
Granted (in dollars per share)	$ 157.80	$ 138.53	$ 132.06
Exercised (in dollars per share)					37.34
Cancelled or forfeited (in dollars per share)					98.28
Balance at the end of the period (in dollars per share)	64.14				64.14		$ 50.85
Vested and expected to vest in the future at the end of the period (in dollars per share)	60.94				60.94
Exercisable at the end of the period (in dollars per share)	$ 31.77				$ 31.77
Weighted-Average Remaining Contractual Term
Balance at the beginning of the period					5 years 7 months 6 days		5 years 7 months 6 days
Balance at the end of the period					5 years 7 months 6 days		5 years 7 months 6 days
Vested and expected to vest in the future at the end of the period					5 years 4 months 24 days
Exercisable at the end of the period					3 years 8 months 12 days
Aggregate Intrinsic Value
Balance at the beginning of the period			$ 646,497		$ 646,497
Balance at the end of the period	$ 613,113				613,113		$ 646,497
Vested and expected to vest in the future at the end of the period	602,318				602,318
Exercisable at the end of the period	$ 501,457				$ 501,457

STOCK-BASED COMPENSATION - Equity Awards (Details) - USD ($) $ / shares in Units, $ in Millions	3 Months Ended				9 Months Ended
	Sep. 30, 2016	Jun. 30, 2016	Mar. 31, 2016	Sep. 30, 2015	Sep. 30, 2016	Sep. 30, 2015
Stock options
Stock-based compensation
Weighted-average grant-date fair value of options granted (in dollars per share)	$ 59.21			$ 51.14	$ 50.82	$ 50.20
Total intrinsic value of options exercised	$ 9.1			$ 11.9	$ 30.6	$ 841.5
Cash received from option exercises	2.4			$ 1.9	10.6	$ 43.6
Total unrecognized compensation expense related to non-vested shares granted to employees	$ 100.3				$ 100.3
Cost expected to be recognized over a weighted-average period					3 years
Stock units expected to vest (in shares)	7,011,000				7,011,000
Restricted stock units
Stock-based compensation
Total unrecognized compensation expense related to non-vested shares granted to employees	$ 16.7				$ 16.7
Cost expected to be recognized over a weighted-average period					1 year 9 months 18 days
Stock units expected to vest (in shares)	200,000				200,000
Number of Shares
Non-vested at the beginning of the period (in shares)			178,000		178,000
Granted (in shares)	0	12,000	82,000
Vested (in shares)					(81,000)
Forfeited/cancelled (in shares)					(1,000)
Non-vested at the end of the period (in shares)	190,000				190,000
Weighted Average Grant-Date Fair Value
Non-vested at the beginning of the period (in dollars per share)			$ 99.58		$ 99.58
Granted (in dollars per share)	$ 0.00	$ 148.94	$ 131.96	$ 147.36	134.14	$ 136.50
Vested (in dollars per share)					95.62
Forfeited/cancelled (in dollars per share)					57.45
Non-vested at the end of the period (in dollars per share)	$ 118.68				$ 118.68

INCOME TAXES - Unrecognized Tax Benefit Rollforward (Details) $ in Thousands	9 Months Ended
	Sep. 30, 2016 USD ($)
Gross unrecognized tax benefits, roll forward
Balance at the beginning of the period	$ 471
Decreases related to settlement with taxing authority	(462)
Balance at the end of the period	$ 9

EARNINGS PER SHARE (Details) - shares shares in Thousands	3 Months Ended		9 Months Ended
EARNINGS PER SHARE (Details) - shares shares in Thousands	Sep. 30, 2016	Sep. 30, 2015	Sep. 30, 2016	Sep. 30, 2015
Weighted-average shares outstanding:
Basic	190,379	205,051	198,073	184,098
Dilutive	4,052	3,043	4,020	4,033
Diluted	194,431	208,094	202,093	188,131
Options and awards outstanding excluded from the calculations as their effect would have been antidilutive (in shares)	1,900	1,100	1,700	900

SEGMENT INFORMATION - Product Line (Details) $ in Thousands	3 Months Ended		9 Months Ended
SEGMENT INFORMATION - Product Line (Details) $ in Thousands	Sep. 30, 2016 USD ($)	Sep. 30, 2015 USD ($)	Sep. 30, 2016 USD ($) item	Sep. 30, 2015 USD ($)	Dec. 31, 2015 USD ($)
Segment information
Number of reportable segments \| item			3
Number of operating segments \| item			3
Net sales	$ 787,954	$ 756,619	$ 2,295,628	$ 2,077,131
Operating income	290,375	291,438	833,610	665,205
Income before tax	289,338	288,076	832,959	662,061
Revenue recognized	8,400	8,200	28,600	54,700
Gain on sale of Monster Non-Energy				161,470
Depreciation and amortization	10,424	8,506	29,874	21,757
Goodwill and other intangible assets	2,364,456		2,364,456		$ 1,707,701
Stock-based compensation expense	12,100	8,900	33,700	23,700
Corporate and Unallocated
Segment information
Operating income	(59,379)	(43,114)	(169,909)	(151,263)
Income before tax	(60,533)	(46,564)	(170,734)	(154,758)
Depreciation and amortization	1,522	1,341	4,593	3,867
Payroll costs	33,200	27,100	92,700	83,900
Stock-based compensation expense	12,100	8,900	33,700	23,700
Professional service expenses	16,900	10,000	47,900	31,200
Other operating expenses	9,300	6,000	29,300	36,200
Operating segment
Segment information
Net sales	787,954	756,619	2,295,628	2,077,131
Operating income	290,375	291,438	833,610	665,205
Income before tax	289,338	288,076	832,959	662,061
Monster Energy Drinks
Segment information
Depreciation and amortization	5,974	5,408	17,651	15,556
Goodwill and other intangible assets	1,331,931		1,331,931		699,346
Monster Energy Drinks \| Operating segment
Segment information
Net sales	710,130	686,684	2,075,511	1,933,467
Operating income	308,493	289,544	874,822	596,716
Income before tax	308,612	289,649	875,024	597,084
Strategic Brands
Segment information
Depreciation and amortization	1,777	1,757	5,325	2,102
Goodwill and other intangible assets	1,003,355		1,003,355		$ 1,008,355
Strategic Brands \| Operating segment
Segment information
Net sales	72,138	69,935	207,990	82,913
Operating income	40,075	45,291	127,169	54,375
Income before tax	40,073	45,275	127,141	54,359
Other
Segment information
Depreciation and amortization	1,151		2,305	232
Goodwill and other intangible assets	29,170		29,170
Other \| Operating segment
Segment information
Net sales	5,686		12,127	60,751
Operating income	1,186	(283)	1,528	165,377
Income before tax	1,186	(284)	1,528	165,376
Direct Store Delivery ("DSD")
Segment information
Revenue recognized	8,400	8,200	28,600	54,700
Distribution Agreements Termination Cost	$ 4,700	$ 2,500	$ 33,400	$ 220,700

SEGMENT INFORMATION - Concentration Risk (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2016	Sep. 30, 2015	Sep. 30, 2016	Sep. 30, 2015
Segment information
Net sales	$ 787,954	$ 756,619	$ 2,295,628	$ 2,077,131
Outside United States
Segment information
Net sales	$ 190,800	$ 170,600	$ 540,200	$ 435,100
Coca-Cola Refreshments ("CCR")
Segment information
Percentage of net sales from major customer	41.00%	42.00%	43.00%	41.00%

RELATED PARTY TRANSACTIONS (Details) $ in Thousands	3 Months Ended		9 Months Ended
RELATED PARTY TRANSACTIONS (Details) $ in Thousands	Sep. 30, 2016 USD ($)	Sep. 30, 2015 USD ($)	Sep. 30, 2016 USD ($) item	Sep. 30, 2015 USD ($)	Dec. 31, 2015 USD ($)
TCCC
Related party transactions
Voting interest (as a percent)	10.00%		10.00%
Commission expense	$ 8,100	$ 7,700	$ 19,000	$ 9,400
Net sales	321,900	315,900	981,000	845,800
Purchases from Related Party	6,200	8,000	20,900	9,100
Manufacturing expenses	2,200	1,800	6,000	5,300
Accounts receivable, net.	198,245		198,245		$ 172,201
Accounts payable	67,838		67,838		58,579
Accrued promotional allowances	33,586		$ 33,586		$ 27,544
Directors and Officers that provide promotional materials
Related party transactions
Number of directors and officers who are principal owners of a company that provides promotional materials \| item			2
Expenses incurred in connection with materials or services provided by a related party	$ 600	$ 300	$ 900	$ 1,500

SUBSEQUENT EVENTS (Details)	Oct. 14, 2016	Oct. 11, 2016 shares	Sep. 30, 2016 $ / shares shares	Dec. 31, 2015 $ / shares shares
Subsequent Events
Common stock, par value (in dollars per share) \| $ / shares			$ 0.005	$ 0.005
Common stock, shares authorized			240,000,000	240,000,000
Common stock dividend percentage	2
Subsequent event
Subsequent Events
Common stock, shares authorized		1,250,000,000
Stock split ratio	3
Common stock dividend percentage	2.00

SUBSEQUENT EVENTS - Pro Forma Earnings Per Share (Details) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2016	Sep. 30, 2015	Sep. 30, 2016	Sep. 30, 2015
SUBSEQUENT EVENTS
NET INCOME	$ 191,643	$ 174,574	$ 539,738	$ 407,991
Pro forma earnings per share basic	$ 0.34	$ 0.28	$ 0.91	$ 0.74
Pro forma earnings per share diluted	$ 0.33	$ 0.28	$ 0.89	$ 0.72
Pro forma weighted average shares basic	571,138	615,153	594,219	552,294
Pro forma weighted average shares Diluted	583,293	624,282	606,280	564,393