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Document and Entity Information - USD ($)	12 Months Ended
Document and Entity Information - USD ($)	Dec. 31, 2017	Feb. 12, 2018	Jun. 30, 2017
Document and Entity Information
Entity Registrant Name	Monster Beverage Corp
Entity Central Index Key	0000865752
Document Type	10-K
Document Period End Date	Dec. 31, 2017
Amendment Flag	false
Current Fiscal Year End Date	--12-31
Entity Well-known Seasoned Issuer	Yes
Entity Voluntary Filers	No
Entity Current Reporting Status	Yes
Entity Filer Category	Large Accelerated Filer
Entity Public Float			$ 25,779,806,546
Entity Common Stock, Shares Outstanding		566,402,748
Document Fiscal Year Focus	2017
Document Fiscal Period Focus	FY

CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands	Dec. 31, 2017	Dec. 31, 2016
CURRENT ASSETS:
Cash and cash equivalents	$ 528,622	$ 377,582
Short-term investments	672,933	220,554
Accounts receivable, net	449,476	448,051
TCCC Transaction receivable		125,000
Inventories	255,745	161,971
Prepaid expenses and other current assets	40,877	32,562
Prepaid income taxes	138,724	66,550
Total current assets	2,086,377	1,432,270
INVESTMENTS	2,366	2,394
PROPERTY AND EQUIPMENT, net	230,276	173,343
DEFERRED INCOME TAXES	92,333	159,556
GOODWILL	1,331,643	1,331,643
OTHER INTANGIBLE ASSETS, net	1,034,085	1,032,635
OTHER ASSETS	13,932	21,630
Total Assets	4,791,012	4,153,471
CURRENT LIABILITIES:
Accounts payable	245,910	193,270
Accrued liabilities	87,475	79,526
Accrued promotional allowances	137,998	110,237
Accrued distributor terminations	91	8,184
Deferred revenue	43,236	41,672
Accrued compensation	34,996	30,043
Income taxes payable	10,645	7,657
Total current liabilities	560,351	470,589
DEFERRED REVENUE	334,354	353,173
OTHER LIABILITIES	1,095
COMMITMENTS AND CONTINGENCIES (Note 11)
STOCKHOLDERS' EQUITY:
Common stock - $0.005 par value; 1,250,000 shares authorized; 629,255 shares issued and 566,298 shares outstanding as of December 31, 2017; 623,201 shares issued and 566,566 shares outstanding as of December 31, 2016	3,146	3,116
Additional paid-in capital	4,150,628	4,051,245
Retained earnings	2,928,226	2,107,548
Accumulated other comprehensive loss	(16,659)	(23,249)
Common stock in treasury, at cost; 62,957 shares and 56,635 shares as of December 31, 2017 and 2016, respectively	(3,170,129)	(2,808,951)
Total stockholders' equity	3,895,212	3,329,709
Total Liabilities and Stockholders' Equity	$ 4,791,012	$ 4,153,471

CONSOLIDATED BALANCE SHEETS (Parenthetical) - $ / shares shares in Thousands	Dec. 31, 2017	Dec. 31, 2016
CONSOLIDATED BALANCE SHEETS
Common stock, par value (in dollars per share)	$ 0.005	$ 0.005
Common stock, shares authorized	1,250,000	1,250,000
Common stock, shares issued	629,255	623,201
Common stock, shares outstanding	566,298	566,566
Common stock in treasury, shares	62,957	56,635

CONSOLIDATED STATEMENTS OF INCOME - USD ($) shares in Thousands, $ in Thousands	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2015
CONSOLIDATED STATEMENTS OF INCOME
NET SALES	$ 3,369,045	$ 3,049,393	$ 2,722,564
COST OF SALES	1,231,355	1,107,393	1,090,263
GROSS PROFIT	2,137,690	1,942,000	1,632,301
OPERATING EXPENSES	938,903	856,662	900,118
GAIN ON SALE OF MONSTER NON-ENERGY (NOTE 2)			161,470
OPERATING INCOME	1,198,787	1,085,338	893,653
OTHER INCOME (EXPENSE), NET	2,836	(5,653)	(2,105)
INCOME BEFORE PROVISION FOR INCOME TAXES	1,201,623	1,079,685	891,548
PROVISION FOR INCOME TAXES	380,945	367,000	344,815
NET INCOME	$ 820,678	$ 712,685	$ 546,733
NET INCOME PER COMMON SHARE:
Basic (in dollars per share)	$ 1.45	$ 1.21	$ 0.97
Diluted (in dollars per share)	$ 1.42	$ 1.19	$ 0.95
WEIGHTED AVERAGE NUMBER OF SHARES OF COMMON STOCK AND COMMON STOCK EQUIVALENTS:
Basic (in shares)	566,782	587,874	566,448
Diluted (in shares)	577,141	599,819	577,758

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2015
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME
Net income, as reported	$ 820,678	$ 712,685	$ 546,733
Other comprehensive (loss) income:
Change in foreign currency translation adjustment, net of tax	7,238	(1,178)	(10,425)
Available-for-sale investments:
Change in net unrealized losses	(648)	(193)
Net change in available-for-sale investments	(648)	(193)
Other comprehensive (loss) income	6,590	(1,371)	(10,425)
Comprehensive income	$ 827,268	$ 711,314	$ 536,308

CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY - USD ($) shares in Thousands, $ in Thousands	Common stock	Additional Paid-in Capital	Retained Earnings	Accumulated Other Comprehensive Loss	Treasury stock	Total
Balance at Dec. 31, 2014	$ 3,105	$ 424,075	$ 2,330,510	$ (11,453)	$ (1,231,087)	$ 1,515,150
Balance (in shares) at Dec. 31, 2014	621,012				(117,846)
Increase (Decrease) in Stockholders' Equity
Stock-based compensation		32,719				32,719
Exercise of stock options	$ 111	49,217				49,328
Exercise of stock options (in shares)	22,275
Issuance of Common Stock	$ 511	3,168,624				3,169,135
Issuance of common stock (in shares)	102,123
Excess tax benefits from share based payment arrangements		314,737				314,737
Repurchase of common stock					$ (807,967)	(807,967)
Repurchase of common stock (in shares)					(18,864)
Cancellation of treasury stock	$ (622)	415	(1,482,380)		$ 1,482,587
Cancellation of treasury stock (in shares)	(124,353)				124,353
Foreign currency translation				(10,425)		(10,425)
Net income			546,733			546,733
Balance at Dec. 31, 2015	$ 3,105	3,989,787	1,394,863	(21,878)	$ (556,467)	4,809,410
Balance (in shares) at Dec. 31, 2015	621,057				(12,357)
Increase (Decrease) in Stockholders' Equity
Stock-based compensation		45,848				45,848
Exercise of stock options	$ 11	16,441				16,452
Exercise of stock options (in shares)	2,144
Unrealized loss on available-for-sale securities				(193)		(193)
Excess tax deficiency from share based payment arrangements		(831)				(831)
Repurchase of common stock					$ (2,252,484)	(2,252,484)
Repurchase of common stock (in shares)					(44,278)
Foreign currency translation				(1,178)		(1,178)
Net income			712,685			712,685
Balance at Dec. 31, 2016	$ 3,116	4,051,245	2,107,548	(23,249)	$ (2,808,951)	3,329,709
Balance (in shares) at Dec. 31, 2016	623,201				(56,635)
Increase (Decrease) in Stockholders' Equity
Stock-based compensation		52,282				52,282
Exercise of stock options	$ 30	52,596				52,626
Exercise of stock options (in shares)	6,054
Unrealized loss on available-for-sale securities				(648)		(648)
Excess tax deficiency from share based payment arrangements		(5,495)				(5,495)
Repurchase of common stock					$ (361,178)	(361,178)
Repurchase of common stock (in shares)					(6,322)
Foreign currency translation				7,238		7,238
Net income			820,678			820,678
Balance at Dec. 31, 2017	$ 3,146	$ 4,150,628	$ 2,928,226	$ (16,659)	$ (3,170,129)	$ 3,895,212
Balance (in shares) at Dec. 31, 2017	629,255				(62,957)

CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2015
CASH FLOWS FROM OPERATING ACTIVITIES:
Net income	$ 820,678	$ 712,685	$ 546,733
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization	48,887	40,845	30,860
(Gain) loss on disposal of property and equipment	(1,161)	(204)	193
Gain on sale of Monster Non-Energy			(161,470)
Stock-based compensation	52,282	45,848	32,719
Loss on put option			250
Gain on investments, net			(250)
Deferred income taxes	67,935	(19,092)	(181,582)
Effect on cash of changes in operating assets and liabilities, net of acquisitions and divestitures:
Accounts receivable	11,822	(86,382)	(77,331)
TCCC Transaction receivable	125,000
Distributor receivables	4,716	(19,981)	600
Inventories	(88,867)	20,875	(7,068)
Prepaid expenses and other current assets	(2,396)	(6,682)	(9,713)
Prepaid income taxes	(71,332)	(48,023)	(11,009)
Accounts payable	29,579	45,340	20,864
Accrued liabilities	(4,499)	(2,852)	43,312
Accrued promotional allowances	21,135	(3,939)	7,009
Accrued distributor terminations	(8,172)	(3,328)	11,196
Accrued compensation	4,491	8,051	4,507
Income taxes payable	(3,590)	4,375	311,534
Other liabilities	1,095
Deferred revenue	(19,872)	13,819	(38,631)
Net cash provided by operating activities	987,731	701,355	522,723
CASH FLOWS FROM INVESTING ACTIVITIES:
Maturities of held-to-maturity investments		868,304	2,089,788
Sales of available-for-sale investments	533,183	120,987	4,001
Sales of trading investments			4,160
Proceeds from the transfer of distribution rights to TCCC			179,658
Proceeds from the sale of Monster Non-Energy			198,008
Purchases of AFF Assets, net		(688,485)
Proceeds from sale of property and equipment	1,416	807	926
Purchases of held-to-maturity investments		(152,050)	(2,033,584)
Purchases of available-for-sale investments	(971,813)	(300,426)
Purchases of property and equipment	(83,435)	(99,819)	(35,605)
Additions to intangibles	(9,693)	(5,518)	(6,888)
(Increase) decrease in other assets	(1,199)	7	(398)
Net cash (used in) provided by investing activities	(531,541)	(256,193)	400,066
CASH FLOWS FROM FINANCING ACTIVITIES:
Principal payments on debt	(2,583)	(2,359)	(1,083)
Issuance of common stock	52,626	16,405	1,696,661
Purchases of common stock held in treasury	(361,178)	(2,252,437)	(807,967)
Net cash (used in) provided by financing activities	(311,135)	(2,238,391)	887,611
Effect of exchange rate changes on cash and cash equivalents	5,985	(4,606)	(5,306)
NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS	151,040	(1,797,835)	1,805,094
CASH AND CASH EQUIVALENTS, beginning of period	377,582	2,175,417	370,323
CASH AND CASH EQUIVALENTS, end of period	528,622	377,582	2,175,417
Cash paid during the period for:
Interest	75	68	29
Income taxes	$ 389,490	$ 431,273	$ 224,928

CONSOLIDATED STATEMENTS OF CASH FLOWS SUPPLEMENTAL DISCLOSURE OF NON-CASH ITEMS - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2015
Capital lease for acquisition of promotional vehicles	$ 2.7	$ 2.6	$ 1.5
Accounts payable for property and equipment	2.3	0.1	0.6
Accrued liabilities for equipment	3.8	4.6	0.1
Accrued liabilities for intangibles	$ 3.7	$ 3.8	$ 2.2
Treasury stock
Treasury stock shares cancelled			(124,353,000)
TCCC
Number of shares issued for acquisition		35,400,000

ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES	12 Months Ended
	Dec. 31, 2017
ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES	1.ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Organization – Monster Beverage Corporation (the “Company”) was incorporated in the state of Delaware. The Company is a holding company and has no operating business except through its consolidated subsidiaries. Nature of Operations – The Company develops, markets, sells and distributes energy drink beverages, sodas and/or concentrates for energy drink beverages, primarily under the following brand names: Monster Energy®, Monster Energy Ultra®, Monster Rehab®, Monster Energy Extra Strength Nitrous Technology®, Java Monster®, Muscle Monster®, Punch Monster®, Juice Monster®, Übermonster®, BU®, Mutant® Super Soda, Monster Hydro®, Espresso MonsterTM, Caffé MonsterTM, Nalu®, NOS®, Full Throttle®, Burn®, Mother®, Ultra Energy®, Play® and Power Play(stylized)®, Relentless® and BPM®. Through June 12, 2015, the Company also developed, marketed, sold and distributed “alternative” beverage category beverages under the following brand names: Peace Tea®, Hansen’s®, Hansen’s Natural Cane Soda®, Junior Juice®, Blue Sky® and Hubert’s®. These brands were transferred to The Coca-Cola Company (“TCCC”) as part of the TCCC Transaction (as defined and described in Note 2 below). Basis of Presentation – The accompanying consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America (“GAAP”) and include the accounts of the Company and its consolidated subsidiaries. Principles of Consolidation – The Company consolidates all entities that it controls by ownership of a majority voting interest. All intercompany balances and transactions have been eliminated in consolidation. Business Combinations – Business acquisitions are accounted for in accordance with Financial Accounting Standards Board (“FASB”) Accounting Standards Codification (“ASC”) 805 “Business Combinations”. FASB ASC 805 requires the reporting entity to identify the acquirer, determine the acquisition date, recognize and measure the identifiable tangible and intangible assets acquired, the liabilities assumed and any non-controlling interest in the acquired entity, and recognize and measure goodwill or a gain from the purchase. The acquiree’s results are included in the Company’s consolidated financial statements from the date of acquisition. Assets acquired and liabilities assumed are recorded at their fair values and the excess of the purchase price over the amounts assigned is recorded as goodwill. Adjustments to fair value assessments are recorded to goodwill over the measurement period (not longer than twelve months). The acquisition method also requires that acquisition-related transaction and post-acquisition restructuring costs be charged to expense and requires the Company to recognize and measure certain assets and liabilities including those arising from contingencies and contingent consideration in a business combination. Cash and Cash Equivalents – The Company considers all highly liquid investments with an original maturity of three months or less from date of purchase to be cash equivalents. Throughout the year, the Company has had amounts on deposit at financial institutions that exceed the federally insured limits. The Company has not experienced any loss as a result of these deposits and does not expect to incur any losses in the future. Investments – The Company’s investments in debt securities are classified as either held-to-maturity, available-for-sale or trading, in accordance with FASB ASC 320. Held-to-maturity securities are those securities that the Company has the positive intent and ability to hold until maturity. Trading securities are those securities that the Company intends to sell in the near term. All other securities not included in the held-to-maturity or trading category are classified as available-for-sale. Held-to-maturity securities are recorded at amortized cost which approximates fair market value. Trading securities are carried at fair value with unrealized gains and losses charged to earnings. Available-for-sale securities are carried at fair value with unrealized gains and losses recorded within accumulated other comprehensive loss as a separate component of stockholders’ equity. FASB ASC 820 defines fair value as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. FASB ASC 820 also establishes a fair value hierarchy which requires an entity to maximize the use of observable inputs, where available (see Note 4). Under FASB ASC 320-10-35, a security is considered to be other-than-temporarily impaired if the present value of cash flows expected to be collected are less than the security’s amortized cost basis (the difference being defined as the “Credit Loss”) or if the fair value of the security is less than the security’s amortized cost basis and the investor intends, or will be required, to sell the security before recovery of the security’s amortized cost basis. If an other-than-temporary impairment exists, the charge to earnings is limited to the amount of Credit Loss if the investor does not intend to sell the security, and will not be required to sell the security, before recovery of the security’s amortized cost basis. Any remaining difference between fair value and amortized cost is recognized in other comprehensive loss, net of applicable taxes. The Company evaluates whether the decline in fair value of its investments is other-than-temporary at each quarter-end. This evaluation consists of a review by management, and includes market pricing information and maturity dates for the securities held, market and economic trends in the industry and information on the issuer’s financial condition and, if applicable, information on the guarantors’ financial condition. Factors considered in determining whether a loss is temporary include the length of time and extent to which the investment’s fair value has been less than its cost basis, the financial condition and near-term prospects of the issuer and guarantors, including any specific events which may influence the operations of the issuer and the Company’s intent and ability to retain the investment for a reasonable period of time sufficient to allow for any anticipated recovery of fair value. Accounts Receivable – The Company evaluates the collectability of its trade accounts receivable based on a number of factors. In circumstances where the Company becomes aware of a specific customer’s inability to meet its financial obligations to the Company, a specific reserve for bad debts is estimated and recorded, which reduces the recognized receivable to the estimated amount the Company believes will ultimately be collected. In addition to specific customer identification of potential bad debts, bad debt charges are recorded based on the Company’s recent loss history and an overall assessment of past due trade accounts receivable outstanding. In accordance with FASB ASC 210-20-45, in its consolidated balance sheets, the Company has presented accounts receivable, net of promotional allowances, only for those customers that it allows net settlement. All other accounts receivable and related promotional allowances are shown on a gross basis. Inventories – Inventories are valued at the lower of first-in, first-out, cost or market value (net realizable value). Property and Equipment – Property and equipment are stated at cost. Depreciation of furniture and fixtures, office and computer equipment, computer software, equipment, and vehicles is based on their estimated useful lives (three to ten years) and is calculated using the straight-line method. Amortization of leasehold improvements is based on the lesser of their estimated useful lives or the terms of the related leases and is calculated using the straight-line method. Normal repairs and maintenance costs are expensed as incurred. Expenditures that materially increase values or extend useful lives are capitalized. The related costs and accumulated depreciation of disposed assets are eliminated and any resulting gain or loss on disposition is included in net income. Goodwill – The Company records goodwill when the consideration paid for an acquisition exceeds the fair value of net tangible and intangible assets acquired, including related tax effects. Goodwill is not amortized; instead goodwill is tested for impairment on an annual basis, or more frequently if the Company believes indicators of impairment exist. The Company first assesses qualitative factors to determine whether it is more-likely-than-not that the fair value of a reporting unit is less than its carrying value. If the Company determines that the fair value is less than the carrying value, the Company will use a two-step process to determine the amount of goodwill impairment. The first step requires comparing the fair value of the reporting unit to its net book value, including goodwill. A potential impairment exists if the fair value of the reporting unit is lower than its net book value. The second step of the process, performed only if a potential impairment exists, involves determining the difference between the fair value of the reporting unit’s net assets, other than goodwill, and the fair value of the reporting unit. An impairment charge is recognized for the excess of the carrying value of goodwill over its implied fair value. For the fiscal years ended December 31, 2017, 2016 and 2015 there were no impairments recorded. Other Intangibles – Other Intangibles are comprised primarily of trademarks that represent the Company’s exclusive ownership of the Monster Energy®, ®, Monster Energy Ultra®, Monster Rehab®, Mutant®, Java Monster®, Unleash the Beast!®, Monster Hydro®, Monster Energy Extra Strength Nitrous Technology®, Muscle Monster®, Punch Monster®, Juice Monster®, Espresso MonsterTM, Caffé MonsterTM, M3(stylized)®, Übermonster®, BU®, Nalu®, NOS®, Full Throttle®, Burn®, Mother®, Ultra Energy®, Play® and Power Play(stylized)®, Gladiator®, Relentless® Samurai® and BPM® trademarks, all used in connection with the manufacture, sale and distribution of beverages. The Company also owns a number of other trademarks in the United States, as well as in a number of countries around the world. In accordance with FASB ASC 350, intangible assets with indefinite lives are not amortized but instead are measured for impairment at least annually, or when events indicate that an impairment exists. The Company calculates impairment as the excess of the carrying value of its indefinite-lived assets over their estimated fair value. If the carrying value exceeds the estimate of fair value a write-down is recorded. The Company amortizes its trademarks with finite useful lives over their respective useful lives. For the fiscal years ended December 31, 2017, 2016 and 2015 there were no impairments recorded. Long-Lived Assets – Management regularly reviews property and equipment and other long-lived assets, including certain definite-lived intangible assets, for possible impairment. This review occurs annually, or more frequently if events or changes in circumstances indicate the carrying amount of the asset may not be recoverable. If there is indication of impairment, management then prepares an estimate of future cash flows (undiscounted and without interest charges) expected to result from the use of the asset and its eventual disposition. If these cash flows are less than the carrying amount of the asset, an impairment loss is recognized to write down the asset to its estimated fair value. The fair value is estimated using the present value of the future cash flows discounted at a rate commensurate with management’s estimates of the business risks. Preparation of estimated expected future cash flows is inherently subjective and is based on management’s best estimate of assumptions concerning expected future conditions. For the fiscal years ended December 31, 2017, 2016 and 2015, there were no impairment indicators identified. Long-lived assets held for sale are recorded at the lower of their carrying amount or fair value less cost to sell. Foreign Currency Translation and Transactions – The accounts of the Company’s foreign subsidiaries are translated in accordance with FASB ASC 830. Foreign currency transaction gains and losses are recognized in other expense, net, at the time they occur. Net foreign currency exchange gains or losses resulting from the translation of assets and liabilities of foreign subsidiaries whose functional currency is not the U.S. dollar are recorded as a part of accumulated other comprehensive loss in stockholders’ equity. Unrealized foreign currency exchange gains and losses on certain intercompany transactions that are of a long-term investment nature (i.e., settlement is not planned or anticipated in the foreseeable future) are also recorded in accumulated other comprehensive loss in stockholders’ equity. During the years ended December 31, 2017, 2016 and 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 outstanding as of December 31, 2017 have terms of one month or less. We do 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 FASB ASC 815. Therefore, gains and losses on the Company’s foreign currency exchange contracts are recognized in other expense, net, in the consolidated statements of income, and are largely offset by the changes in the fair value of the underlying economically hedged item. For the years ended December 31, 2017, 2016 and 2015, aggregate foreign currency transaction losses, including the gains or losses on forward currency exchange contracts, amounted to $3.3 million, $9.7 million and $5.5 million, respectively, and have been recorded in other income (expense), net in the accompanying consolidated statements of income. Revenue Recognition – The Company recognizes revenue when persuasive evidence of an arrangement exists, delivery has occurred, the sales price is fixed or determinable and collectability is reasonably assured. Generally, ownership of and title to the Company’s finished products passes to customers upon delivery of the products to customers. Certain of the Company’s distributors may also perform a separate function as a co-packer on the Company’s behalf. In such cases, ownership of and title to the Company’s products that are co-packed on the Company’s behalf by those co-packers who are also distributors, passes to such distributors when the Company is notified by them that they have taken transfer or possession of the relevant portion of the Company’s finished goods. Revenue for the Strategic Brands segment is generally recognized when title to the concentrate is transferred to the customer. In particular, title to the concentrate usually passes upon shipment to the customers’ locations, as determined by the specific sales terms of the transactions. Net sales have been determined after deduction of promotional and other allowances in accordance with FASB ASC 605-50. The Company’s promotional and other allowances are calculated based on various programs with its distributors and retail customers, and accruals are established during the year for the anticipated liabilities. These accruals are based on agreed upon terms as well as the Company’s historical experience with similar programs and require management’s judgment with respect to estimating consumer participation and/or distributor and retail customer performance levels. Differences between such estimated expense and actual expenses for promotional and other allowance costs have historically been insignificant and are recognized in earnings in the period such differences are determined. Amounts received pursuant to new and/or amended distribution agreements entered into with certain distributors, relating to the costs associated with terminating the Company’s prior distributors, are accounted for as revenue ratably over the anticipated life of the respective distribution agreement, generally 20 years. The Company also enters into license agreements that generate revenues associated with third-party sales of non-beverage products bearing our trademarks including, but not limited to, clothing hats, t-shirts, jackets, helmets and automotive wheels. Management believes that adequate provision has been made for cash discounts, returns and spoilage based on the Company’s historical experience. Cost of Sales – Cost of sales consists of the costs of concentrates and/or beverage bases, the costs of raw materials utilized in the manufacture of products, co-packing fees, repacking fees, in-bound freight charges, as well as certain internal transfer costs, warehouse expenses incurred prior to the manufacture of the Company’s finished products and certain quality control costs. Raw materials account for the largest portion of the cost of sales. Raw materials include cans, bottles, other containers, flavors, ingredients and packaging materials. Operating Expenses – Operating expenses include selling expenses such as distribution expenses to transport products to customers and warehousing expenses after manufacture, as well as expenses for advertising, sampling and in-store demonstration costs, costs for merchandise displays, point-of-sale materials and premium items, sponsorship expenses, other marketing expenses and design expenses. Operating expenses also include such costs as payroll costs, travel costs, professional service fees including legal fees, termination payments made to certain of the Company’s prior distributors, depreciation and other general and administrative costs. Freight-Out Costs – For the years ended December 31, 2017, 2016 and 2015, freight-out costs amounted to $91.9 million, $83.6 million and $87.0 million, respectively, and have been recorded in operating expenses in the accompanying consolidated statements of income. Advertising and Promotional Expenses – The Company accounts for advertising production costs by expensing such production costs the first time the related advertising takes place. A significant amount of the Company’s promotional expenses result from payments under endorsement and sponsorship contracts. Accounting for endorsement and sponsorship payments is based upon specific contract provisions. Generally, endorsement and sponsorship payments are expensed on a straight-line basis over the term of the contract after giving recognition to periodic performance compliance provisions of the contracts. Advertising and promotional expenses, including, but not limited to, production costs amounted to $324.0 million, $270.6 million and $209.7 million for the years ended December 31, 2017, 2016 and 2015, respectively. Advertising and promotional expenses are included in operating expenses in the accompanying consolidated statements of income. Income Taxes – The Company utilizes the liability method of accounting for income taxes as set forth in FASB ASC 740. Under the liability method, deferred taxes are determined based on the temporary differences between the financial statement and tax basis of assets and liabilities using tax rates expected to be in effect during the years in which the basis differences reverse. A valuation allowance is recorded when it is more likely than not that some of the deferred tax assets will not be realized. In determining the need for valuation allowances the Company considers projected future taxable income and the availability of tax planning strategies. If in the future the Company determines that it would not be able to realize its recorded deferred tax assets, an increase in the valuation allowance would be recorded, decreasing earnings in the period in which such determination is made. The Company assesses its income tax positions and records tax benefits for all years subject to examination based upon the Company’s evaluation of the facts, circumstances and information available at the reporting date. For those tax positions where there is a greater than 50% likelihood that a tax benefit will be sustained, the Company has recorded the largest amount of tax benefit that may potentially be realized upon ultimate settlement with a taxing authority that has full knowledge of all relevant information. For those income tax positions where there is less than 50% likelihood that a tax benefit will be sustained, no tax benefit has been recognized in the financial statements. Stock-Based Compensation – The Company accounts for stock-based compensation under the provisions of FASB ASC 718. 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. 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. 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. (See Note 14). Net Income Per Common Share – In accordance with FASB ASC 260, net income per common share, on a basic and diluted basis, is presented for all periods. Basic net income per share is computed by dividing net income by the weighted average number of common shares outstanding during each period. Diluted net income per share is computed by dividing net income by the weighted average number of common and dilutive common equivalent shares outstanding. The calculation of common equivalent shares assumes the exercise of dilutive stock options, net of assumed treasury share repurchases at average market prices, as applicable. Concentration of Risk – Certain of the Company’s products utilize components (raw materials and/or co-packing services) from a limited number of sources. A disruption in the supply of such components could significantly affect the Company’s revenues from those products, as alternative sources of such components may not be available at commercially reasonable rates or within a reasonably short time period. The Company continues to endeavor to secure the availability of alternative sources for such components and minimize the risk of any disruption in production. TCCC, through certain wholly-owned subsidiaries (the “TCCC Subsidiaries”), accounted for approximately 18%, 41% and 43% of the Company’s net sales for the years ended December 31, 2017, 2016 and 2015, respectively. As part of TCCC’s North America Refranchising initiative (the “North America Refranchising”), the territories of certain TCCC Subsidiaries have been transitioned to certain independent/non wholly-owned TCCC bottlers/distributors. Accordingly, the Company’s percentage of net sales classified as sales to the TCCC Subsidiaries decreased for the year ended December 31, 2017. CCBCC Operations, LLC accounted for approximately 13%, 9% and 6% of the Company’s net sales for the years ended December 31, 2017, 2016 and 2015, respectively. Credit Risk – The Company sells its products nationally and internationally, primarily to full service beverage distributors, retail grocery and specialty chains, wholesalers, club stores, mass merchandisers, convenience chains and food service customers. The Company performs ongoing credit evaluations of its customers and generally does not require collateral. The Company maintains reserves for estimated credit losses, and historically, such losses have been within management’s expectations. Fair Value of Financial Instruments – The carrying value of the Company’s financial instruments, including cash and cash equivalents, accounts receivable, accounts payable and accrued liabilities, approximate fair value due to the relatively short maturity of the respective instruments. Use of Estimates – The preparation of the consolidated financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. Recent Accounting Pronouncements – In May 2017, the FASB issued ASU No. 2017-09, “Compensation–Stock Compensation (Topic 718): Scope of Modification Accounting,” clarifying when a change to the terms or conditions of a share-based payment award must be accounted for as a modification. The new guidance requires modification accounting if the fair value, vesting condition or the classification of the award is not the same immediately before and after a change to the terms and conditions of the award. The new guidance is effective for the Company on a prospective basis beginning on January 1, 2018, with early adoption permitted. The adoption of ASU No. 2017-09 will not have a material impact on the Company’s financial position, results of operations and liquidity. In January 2017, the FASB issued ASU No. 2017-01, “Business Combinations (Topic 805): Clarifying the Definition of a Business”, which clarifies the definition of a business with the objective of adding guidance to assist entities with evaluating whether transactions should be accounted for as acquisitions (or disposals) of assets or businesses. This amendment is effective for fiscal years beginning after December 15, 2017, and interim periods within those fiscal years. Early adoption is permitted. The adoption of ASU No. 2017-01 will not have a material impact on the Company’s financial position, results of operations and liquidity. In January 2017, the FASB issued ASU No. 2017-04, “Intangibles and Other (Topic 350): Simplifying the Test for Goodwill Impairment”, which eliminates the requirement to calculate the implied fair value of goodwill, but rather requires an entity to record an impairment charge based on the excess of a reporting unit’s carrying value over its fair value. This amendment is effective for annual or interim goodwill impairment tests in fiscal years beginning after December 15, 2019. Early adoption is permitted. The Company is currently evaluating the impact of ASU No. 2017-04 on its financial position, results of operations and liquidity. In October 2016, the FASB issued ASU No. 2016-16, “Income Taxes (Topic 740): Intra-Entity Transfers of Assets Other Than Inventory”, in an effort to improve the accounting for the income tax consequences of intra-entity transfers of assets other than inventory. Current GAAP prohibits the recognition of current and deferred income taxes for an intra-entity asset transfer until the asset has been sold to an outside party. FASB ASU No. 2016-16 establishes the requirement that an entity recognize the income tax consequences of an intra-entity transfer of an asset other than inventory when the transfer occurs. ASU No. 2016-16 is effective for financial statements issued for annual periods beginning after December 15, 2017 and interim periods within those annual periods. Earlier application is permitted as of the beginning of an interim or annual reporting period, with any adjustments reflected as of the beginning of the fiscal year of adoption. The Company is currently evaluating the impact of ASU No. 2016-16 on its financial position, results of operations and liquidity. In August 2016, the FASB issued ASU No. 2016-15, “Statement of Cash Flows (Topic 230)”. The new guidance is intended to reduce diversity in practice in how certain transactions are classified in the statement of cash flows. ASU No. 2016-15 is effective for fiscal years, and interim periods within those years, beginning after December 15, 2017. Early adoption is permitted, provided that all of the amendments are adopted in the same period. The guidance requires application using a retrospective transition method. The Company is currently evaluating the impact of ASU No. 2016-15 on its financial position, results of operations and liquidity. In June 2016, the FASB issued ASU No. 2016-13, “Financial Instruments - Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments”. The accounting standard changes the methodology for measuring credit losses on financial instruments and the timing when such losses are recorded. ASU No. 2016-13 is effective for fiscal years, and interim periods within those years, beginning after December 15, 2019. Early adoption is permitted for fiscal years, and interim periods within those years, beginning after December 15, 2018. The Company is currently evaluating the impact of ASU No. 2016-13 on its financial position, results of operations and liquidity. In February 2016, the FASB issued ASU No. 2016-02, “Leases (Topic 842)”. This update is intended to increase transparency and comparability among organizations by recognizing lease assets and lease liabilities on the balance sheet and disclosing key information about leasing arrangements. This update is effective for annual and interim reporting periods beginning after December 15, 2018, including interim periods within those fiscal years. Early adoption is permitted. The Company is currently evaluating the impact of ASU No. 2016-02 on its financial position, results of operations and liquidity. In May 2014, the FASB issued ASU No. 2014-09, “Revenue from Contracts with Customers (Topic 606)”, which supersedes previous revenue recognition guidance. ASU No. 2014-09 requires that a company recognize revenue at an amount that reflects the consideration to which the company expects to be entitled in exchange for transferring goods or services to a customer. In applying the new guidance, a company will (i) identify the contract(s) with a customer; (ii) identify the performance obligations in the contract; (iii) determine the transaction price; (iv) allocate the transaction price to the contract’s performance obligations; and (v) recognize revenue when (or as) the entity satisfies a performance obligation. This guidance 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 majority of the Company’s revenue arrangements generally consist of a single performance obligation to transfer promised goods. Based on the Company’s evaluation process and review of its contracts with customers, the timing and amount of revenue recognized based on ASU No. 2014-09 is consistent with the Company’s revenue recognition policy under previous guidance. The Company adopted the new standard effective January 1, 2018, using the modified retrospective approach, and will expand its consolidated financial statement disclosures in order to comply with ASU No. 2014-09. The Company has completed its evaluation and determined the adoption of ASU No. 2014-09 will not have a material impact on its financial position, results of operations and liquidity.

ACQUISITIONS AND DIVESTITURES

12 Months Ended

Dec. 31, 2017

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 FASB ASC No. 805 “Business Combinations”.

In accordance with Regulation S-X, pro forma unaudited 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 102,121,602 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, as described below, pursuant to an escrow agreement (the “Escrow Agreement”) through June 17, 2016, subject to release upon the achievement of certain 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 December 31, 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. During the year ended December 31, 2017, target case sales in excess of 95% were transitioned to TCCC’s distribution network, resulting in the receipt of the remaining amounts due from TCCC related to the TCCC Transaction.

The following unaudited pro forma combined financial information is presented as if the TCCC Transaction had closed on January 1, 2015:

	Year Ended December 31, 2015
				Pro Forma Adjustments
	Monster Beverage Corporation as reported¹	KO Energy²		Disposal of Monster Non- Energy³	Other	Pro Forma Combined
Net sales	$ 2,722,564	$ 138,127		$ (60,778)	$ 8,887	$ 2,808,800
Net income	546,733	100,575	4	(101,618)	(30,390)	515,300

¹Includes net sales of $143.3 million and net income of $55.2 million (tax affected) related to the acquired KO Energy assets since the date of acquisition, June 12, 2015.

²Includes results through June 12, 2015, the date the TCCC Transaction was finalized. Net income for KO Energy includes only net revenues and direct operating expenses, rather than full “carve-out” financial statements, because such financial information 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.

³Includes results through June 12, 2015. Net income includes gain recognized on the sale of Monster Non-Energy of $161.5 million.

4The $100.6 million of net income for KO Energy for the year ended December 31, 2015 is presented before tax. The associated estimated provision for income taxes is included in the “Other” category.

Pro-Forma Adjustments – Other include the following:

	Year Ended December 31, 2015¹
Net sales:
Amortization of deferred revenue	$	8,887

Net income:

Amortization of deferred revenue	$	8,887
To record sales commissions	(15,470)
To record amortization of definite lived KO Energy intangibles	(3,126)

To eliminate TCCC Transaction expenses	15,495

Estimated provision for income taxes on pro forma adjustments	2,545

Estimated provision for income taxes on KO Energy income	(38,721)

Total	$	(30,390)

¹Includes amortization of deferred revenue, sales commissions and amortization of intangibles through June 12, 2015, the date the TCCC Transaction was consummated.

For purposes of the unaudited pro forma financial information, a combined U.S. Federal and state statutory tax rate of 38.5% was 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.

INVESTMENTS

12 Months Ended

Dec. 31, 2017

INVESTMENTS

INVESTMENTS

3.INVESTMENTS

The following table summarizes the Company’s investments at:

December 31, 2017	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
Available-for-sale
Short-term:
Commercial paper	$	81,026	$	-	$	-	$	81,026	$	-	$	-
Certificates of deposit	11,869		-		-		11,869		-		-
Municipal securities	469,604		1		740		468,865		740		-
U.S. government agency securities	61,307		-		88		61,219		88		-
Variable rate demand notes	49,954		-		-		49,954		-		-
Long-term:
U.S. government agency securities	2,369		-		3		2,366		3		-

Total	$	676,129	$	1	$	831	$	675,299	$	831	$	-


December 31, 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

Available-for-sale
Short-term:
Commercial paper	$	40,382	$	-	$	-	$	40,382	$	-	$	-
Municipal securities	140,379		-		181		140,198		181		-
U.S. government agency securities	26,057		-		6		26,051		6		-
Variable rate demand notes	13,923		-		-		13,923		-		-
Long-term:
Municipal securities	2,403		-		9		2,394		9		-

Total	$	223,144	$	-	$	196	$	222,948	$	196	$	-

During the years ended December 31, 2017 and 2016, realized gains or losses recognized on the sale of investments were not significant.

The Company’s investments at December 31, 2017 and 2016 in commercial paper, certificates of deposit, municipal securities, U.S. government agency securities and/or variable rate demand notes (“VRDNs”) carried investment grade credit ratings. VRDNs are floating rate municipal bonds with embedded put options that allow the bondholder to sell the security at par plus accrued interest. All of the put options are secured by a pledged liquidity source. While they are classified as marketable investment securities, the put option allows the VRDNs to be liquidated at par on a same day, or more generally, on a seven-day settlement basis.

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

	December 31, 2017				December 31, 2016

	Amortized Cost		Fair Value		Amortized Cost		Fair Value
Less than 1 year:
Commercial paper	$	81,026	$	81,026	$	40,382	$	40,382
Municipal securities	469,604		468,865		140,379		140,198
U.S. government agency securities	61,307		61,219		26,057		26,051
Certificates of deposit	11,869		11,869		-		-
Due 1 -10 years:
Municipal securities	-		-		2,403		2,394
U.S. government agency securities	2,369		2,366		-		-
Variable rate demand notes	6,366		6,366		3,917		3,917
Due 11 - 20 years:
Variable rate demand notes	28,377		28,377		6,003		6,003
Due 21 - 30 years:
Variable rate demand notes	15,211		15,211		4,003		4,003

Total	$	676,129	$	675,299	$	223,144	$	222,948

The Company recognized a net gain through earnings on its trading securities as follows for the years ended:

	2017		2016		2015
Gain (loss) on transfer from available-for-sale to trading	$	-	$	-	$	-
Gain on trading securities sold	-		-		250
(Loss) gain on trading securities held	-		-		-

Gain on trading securites	$	-	$	-	$	250

- Definition

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

+ References + Details

FAIR VALUE OF CERTAIN FINANCIAL ASSETS AND LIABILITIES

12 Months Ended

Dec. 31, 2017

FAIR VALUE OF CERTAIN FINANCIAL ASSETS AND LIABILITIES

FAIR VALUE OF CERTAIN FINANCIAL ASSETS AND LIABILITIES

4.FAIR VALUE OF CERTAIN FINANCIAL ASSETS AND LIABILITIES

FASB ASC 820 provides a framework for measuring fair value and requires expanded disclosures regarding fair value measurements. FASB ASC 820 defines fair value as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. FASB 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.

FASB 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 financial assets that are recorded at fair value on a recurring basis, segregated among the appropriate levels within the fair value hierarchy at:

December 31, 2017	Level 1		Level 2			Level 3		Total

Cash	$	310,885	$	-		$	-	$	310,885
Money market funds	112,848		-			-		112,848
Certificates of deposit	-		15,720			-		15,720
Commercial paper	-		99,903			-		99,903
Variable rate demand notes	-		49,954			-		49,954
Municipal securities	-		529,984			-		529,984
U.S. government agency securities	-		81,230			-		81,230
U.S. Treasuries	-		3,397			-		3,397
Foreign currency derivatives	-		(1,484		)	-		(1,484		)

Total	$	423,733	$	778,704		$	-	$	1,202,437


Amounts included in:
Cash and cash equivalents	$	423,733	$	104,889		$	-	$	528,622
Short-term investments	-		672,933			-		672,933
Accounts receivable, net	-		95			-		95
Investments	-		2,366			-		2,366
Accrued liabilities	-		(1,579		)	-		(1,579		)

Total	$	423,733	$	778,704		$	-	$	1,202,437


December 31, 2016	Level 1		Level 2			Level 3		Total

Cash	$	278,972	$	-		$	-	$	278,972
Money market funds	76,112		-			-		76,112
Commercial paper	-		47,855			-		47,855
Variable rate demand notes	-		13,923			-		13,923
Municipal securities	-		157,617			-		157,617
U.S. government agency securities	-		26,051			-		26,051
Foreign currency derivatives	-		(528		)	-		(528		)

Total	$	355,084	$	244,918		$	-	$	600,002


Amounts included in:
Cash and cash equivalents	$	355,084	$	22,498		$	-	$	377,582
Short-term investments	-		220,554			-		220,554
Accounts receivable, net	-		236			-		236
Investments	-		2,394			-		2,394
Accrued liabilities	-		(764		)	-		(764		)

Total	$	355,084	$	244,918		$	-	$	600,002

All of the Company’s short-term investments are classified within Level 1 or Level 2 within 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, VRDNs and U.S. government agency securities, is based on other observable inputs, specifically a market approach which utilizes valuation models, pricing systems, mathematical tools and other relevant information for the same or similar securities. The Company’s valuation of its Level 2 foreign currency exchange contracts is based on quoted market prices of the same or similar instruments, adjusted for counterparty risk. There were no transfers between Level 1 and Level 2 measurements during the years ended December 31, 2017 and 2016, 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

12 Months Ended

Dec. 31, 2017

DERIVATIVE INSTRUMENTS AND HEDGING ACTIVITIES

DERIVATIVE INSTRUMENTS AND HEDGING ACTIVITIES

5.DERIVATIVE INSTRUMENTS AND HEDGING ACTIVITIES

The Company is exposed to foreign currency exchange rate risks related primarily to its foreign business operations. During the years ended December 31, 2017, 2016 and 2015, respectively, the Company entered into forward currency exchange contracts with financial institutions to create an economic hedge to specifically manage a portion of the foreign exchange risk exposure associated with certain consolidated subsidiaries’ non-functional currency denominated assets and liabilities. All foreign currency exchange contracts entered into by the Company that were outstanding as of December 31, 2017 have terms of one month or less. The Company does not enter into forward currency exchange contracts for speculation or trading purposes.

The Company has not designated its foreign currency exchange contracts as hedge transactions under FASB ASC 815. Therefore, gains and losses on the Company’s foreign currency exchange contracts are recognized in other expense, net, in the 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 consolidated balance sheets consist of the following at:

December 31, 2017
Derivatives not designated as hedging instruments under FASB ASC 815-20	Notional Amount		Fair Value		Balance Sheet Location
Assets:
Foreign currency exchange contracts:
Receive CAD/pay USD	$	4,892	$	61	Accounts receivable, net
Receive SGD/pay USD	223		2		Accounts receivable, net
Receive NOK/pay USD	1,534		18		Accounts receivable, net
Receive USD/pay BRL	1,806		1		Accounts receivable, net
Receive USD/pay COP	2,803		13		Accounts receivable, net



Liabilities:
Foreign currency exchange contracts:
Receive USD/pay GBP	$	31,342	$	(334)	Accrued liabilities
Receive USD/pay EUR	65,131		(642)		Accrued liabilities
Receive USD/pay AUD	17,238		(177)		Accrued liabilities
Receive USD/pay ZAR	21,311		(222)		Accrued liabilities
Receive USD/pay MXN	7,720		(126)		Accrued liabilities
Receive USD/pay NZD	1,826		(18)		Accrued liabilities
Receive USD/pay TRY	5,483		(52)		Accrued liabilities
Receive USD/pay CLP	1,112		(8)		Accrued liabilities

December 31, 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 CAD/pay USD	$	22,314	$	173	Accounts receivable, net
Receive SGD/pay USD	7,915		24		Accounts receivable, net
Receive NOK/pay USD	2,138		28		Accounts receivable, net
Receive USD/pay CLP	4,094		9		Accounts receivable, net
Receive USD/pay COP	2,330		2		Accounts receivable, net



Liabilities:
Foreign currency exchange contracts:
Receive USD/pay GBP	$	7,718	$	(57)	Accrued liabilities
Receive USD/pay EUR	29,621		(325)		Accrued liabilities
Receive USD/pay AUD	15,135		(74)		Accrued liabilities
Receive USD/pay ZAR	20,405		(296)		Accrued liabilities
Receive USD/pay MXN	25,864		(4)		Accrued liabilities
Receive USD/pay BRL	3,138		(3)		Accrued liabilities
Receive USD/pay NZD	2,076		(5)		Accrued liabilities

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

		Amount of gain (loss) recognized in income on derivatives
		Year ended
Derivatives not designated as hedging instruments under FASB ASC 815-20	Location of gain (loss) recognized in income on derivatives	December 31, 2017		December 31, 2016		December 31, 2015


Foreign currency exchange contracts	Other income (expense), net	$	(13,733)	$	1,819	$	2,503

- 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.

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+ Details

INVENTORIES

12 Months Ended

Dec. 31, 2017

INVENTORIES

INVENTORIES

6.INVENTORIES

Inventories consist of the following at December 31:

	2017		2016
Raw materials	$	78,834	$	58,658
Finished goods	176,911		103,313

	$	255,745	$	161,971

PROPERTY AND EQUIPMENT, Net

12 Months Ended

Dec. 31, 2017

PROPERTY AND EQUIPMENT, Net

PROPERTY AND EQUIPMENT, Net

7.PROPERTY AND EQUIPMENT, Net

Property and equipment consist of the following at December 31:

	2017			2016
Land	$	47,373		$	46,596
Leasehold improvements	3,109			2,687
Furniture and fixtures	6,461			3,635
Office and computer equipment	14,506			11,701
Computer software	3,650			3,274
Equipment	148,434			114,230
Building	107,374			69,547
Vehicles	38,179			31,582

	369,086			283,252
Less: accumulated depreciation and amortization	(138,810		)	(109,909		)

	$	230,276		$	173,343

Total depreciation and amortization expense recorded was $37.0 million, $30.2 million and $27.0 million for the years ended December 31, 2017, 2016 and 2015, respectively.

GOODWILL AND OTHER INTANGIBLE ASSETS

12 Months Ended

Dec. 31, 2017

GOODWILL AND OTHER INTANGIBLE ASSETS

GOODWILL AND OTHER INTANGIBLE ASSETS

8.GOODWILL AND OTHER INTANGIBLE ASSETS

The following is a roll-forward of goodwill for the years ended December 31, 2017 and 2016 by reportable segment:

	Monster Energy® Drinks		Strategic Brands		Other		Total
Balance at December 31, 2016	$	693,644	$	637,999	$	-	$	1,331,643
Acquisitions	-		-		-		-

Balance at December 31, 2017	$	693,644	$	637,999	$	-	$	1,331,643

	Monster Energy® Drinks		Strategic Brands		Other		Total
Balance at December 31, 2015	$	641,716	$	637,999	$	-	$	1,279,715
Acquisitions	51,928		-		-		51,928

Balance at December 31, 2016	$	693,644	$	637,999	$	-	$	1,331,643

Intangible assets consist of the following at:

	December 31, 2017			December 31, 2016
Amortizing intangibles	$	71,400		$	71,290
Accumulated amortization	(26,383		)	(14,535		)

	45,017			56,755
Non-amortizing intangibles	989,068			975,880

	$	1,034,085		$	1,032,635

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 $11.9 million, $10.6 million and $3.9 million for the years ended December 31, 2017, 2016 and 2015, respectively.

The following is the future estimated amortization expense related to amortizing intangibles as of December 31, 2017:

Year Ending December 31:

2018	$	11,847
2019	11,847
2020	7,964
2021	4,722
2022	4,697
2023 and thereafter	3,940

	$	45,017

At December 31, 2017, non-amortizing intangibles primarily consist of indefinite-lived tradenames.

DISTRIBUTION AGREEMENTS	12 Months Ended
DISTRIBUTION AGREEMENTS	Dec. 31, 2017
DISTRIBUTION AGREEMENTS
DISTRIBUTION AGREEMENTS	9.DISTRIBUTION AGREEMENTS In accordance with FASB ASC No. 420 “Exit or Disposal Cost Obligations”, the Company expenses distributor termination costs in the period in which the written notification of termination occurs. As a result, the Company incurred termination costs of $35.4 million, $79.8 million and $224.0 million for the years ended December 31, 2017, 2016 and 2015, respectively. Such termination costs have been expensed in full and are included in operating expenses for the years ended December 31, 2017, 2016 and 2015, respectively. 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 $22.3 million, $26.1 million and $50.5 million for the years ended December 31, 2017, 2016 and 2015, respectively. Included in the $22.3 million of revenue recognized for the year ended December 31, 2017 was $0.6 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 year ended December 31, 2017. Included in the $26.1 million of revenue recognized for the year ended December 31, 2016 was $5.7 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 year ended December 31, 2016. Included in the $50.5 million of revenue recognized for the year ended December 31, 2015 was $39.8 million related to the accelerated amortization of the deferred revenue balances associated with certain of the Company’s prior distributors who were sent notices of termination during the year ended December 31, 2015.

DEBT	12 Months Ended
DEBT	Dec. 31, 2017
DEBT
DEBT	10.DEBT The Company entered into a credit facility with Comerica Bank (“Comerica”) consisting of a revolving line of credit, which was amended in June 2017, under which the Company may borrow up to $10.0 million of non-collateralized debt. The revolving line of credit is effective through June 1, 2020. Interest on borrowings under the line of credit is based on Comerica’s base (prime) rate minus 1% to 1.5%, or London Interbank Offered Rates plus an additional percentage of 1.25% to 1.75%, depending upon certain financial ratios maintained by the Company. The Company had no outstanding borrowings on this line of credit at December 31, 2017. Under this revolving line of credit, the Company may also issue standby Letters of Credit with an aggregate amount of up to $4.0 million. The fee on the standby Letters of Credit ranges from 1.00% to 1.50% depending upon certain financial ratios maintained by the Company. The Company had no outstanding standby Letters of Credit at December 31, 2017. In December 2016, the Company entered into a credit facility with HSBC Bank (China) Company Limited, Shanghai Branch consisting of a working capital line of credit under which the Company may borrow up to $4.0 million of non-collateralized debt. In February 2017, the working capital line limit was increased from $4.0 million to $9.0 million. Interest on borrowings under the line of credit is based on the People’s Bank of China benchmark lending rates multiplied by 1.10. As of December 31, 2017, the Company had $6.0 million outstanding on this line of credit, including interest, which is included in accounts payable in the condensed consolidated balance sheet. The Company’s debt of $1.3 million and $1.1 million at December 31, 2017 and 2016, respectively, consisted of capital leases, collateralized by vehicles, payable over 12 months in monthly installments at various effective interest rates, with final payments ending on or before December 31, 2018. At December 31, 2017 and 2016, the assets acquired under capital leases had a net book value of $5.3 million and $4.5 million, net of accumulated depreciation of $4.2 million and $4.5 million, respectively. Interest expense for capital lease obligations amounted to $0.08 million, $0.07 million and $0.03 million for the years ended December 31, 2017, 2016 and 2015, respectively.

COMMITMENTS AND CONTINGENCIES

12 Months Ended

Dec. 31, 2017

COMMITMENTS AND CONTINGENCIES

COMMITMENTS AND CONTINGENCIES

11.COMMITMENTS AND CONTINGENCIES

The Company is obligated under various non-cancellable lease agreements providing for office space, warehouse space, and automobiles that expire at various dates through the year 2031.

Rent expense under operating leases was $10.7 million, $9.9 million and $10.7 million for the years ended December 31, 2017, 2016 and 2015, respectively.

Future minimum rental payments at December 31, 2017 under the operating leases referred to above are as follows:

Year Ending December 31:

2018	$	2,588
2019	1,802
2020	1,764
2021	1,745
2022	1,469
2023 and thereafter	7,347

	$	16,715

Contractual obligations – The Company has the following contractual obligations related primarily to sponsorships and other commitments as of December 31, 2017:

Year Ending December 31:

2018	$	96,774
2019	29,427
2020	23,996
2021	5,666
2022	8
2023 and thereafter	-

	$	155,871

Purchase Commitments – The Company has purchase commitments aggregating approximately $37.8 million at December 31, 2017, which represent 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 purchases various raw material items, including, but not limited to, flavors, ingredients, dietary ingredients, containers, milk, glucose, sucralose, cream and protein, from a limited number of suppliers. An interruption in supply from any of such resources could result in the Company’s inability to produce certain products for limited or possibly extended periods of time. The aggregate value of purchases from suppliers of such limited resources described above for the years ended December 31, 2017, 2016 and 2015 was $273.6 million, $205.9 million and $332.0 million, respectively.

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. In the fourth quarter of 2017, the Company completed the construction of an approximately 1,000,000 square-foot building (the “Rialto Warehouse”) on this land, which it anticipates will be LEED certified, to replace its leased warehouse and distribution facilities located in Corona, CA. The Company entered into an approximately $38.1 million guaranteed maximum price construction contract for the construction of the building, of which $4.6 million remained outstanding as of December 31, 2017. During the three-months ended December 31, 2017, the Company transitioned its Southern California warehouse and distribution operations to the Rialto Warehouse, which was fully operational by December 31, 2017.

Guarantees – The Company from time to time enters into certain types of contracts that contingently require the Company to indemnify parties against third-party claims. These contracts primarily relate to: (i) certain agreements with the Company’s officers, directors and employees under which the Company may be required to indemnify such persons for liabilities arising out of their employment relationship, (ii) certain distribution or purchase agreements under which the Company may have to indemnify the Company’s customers from any claim, liability or loss arising out of any actual or alleged injury or damages suffered in connection with the consumption or purchase of the Company’s products or the use of Company trademarks, and (iii) certain real estate leases, under which the Company may be required to indemnify property owners for liabilities and other claims arising from the Company’s use of the applicable premises. The terms of such obligations vary and typically, a maximum obligation is not explicitly stated. Generally, the Company believes that its insurance coverage is adequate to cover any resulting liabilities or claims.

Litigation – The Company is currently a defendant in a number of personal injury lawsuits, claiming that the death or other serious injury of the plaintiffs was caused by consumption of Monster Energy® brand energy drinks. The plaintiffs in these lawsuits allege strict product liability, negligence, fraudulent concealment, breach of implied warranties and wrongful death. The Company believes that each complaint is without merit and plans a vigorous defense. The Company also believes that any damages, if awarded, would not have a material adverse effect on the Company’s financial position or results of operations.

State Attorney General Inquiry – In July 2012, the Company received a subpoena from the Attorney General for the State of New York in connection with its investigation concerning the Company’s advertising, marketing, promotion, ingredients, usage and sale of its Monster Energy® brand energy drinks. Production of documents pursuant to that subpoena was completed in approximately May 2014.

On August 6, 2014, the Attorney General for the State of New York issued a second subpoena seeking additional documents and the deposition of a Company employee. On September 8, 2014, the Company moved to quash the second subpoena in the Supreme Court, New York County. The motion was fully briefed and was argued on March 17, 2015. On January 13, 2017, the Court issued an opinion in which it agreed with certain Company arguments regarding the scope of the subpoena and the Attorney General’s investigation, but denied the motion to quash and granted the Attorney General’s cross-motion to compel compliance. The Company has complied with the second subpoena. It is unknown what, if any, action the state Attorney General may take against the Company, the relief which may be sought in the event of any such proceeding or whether such proceeding could have a material adverse effect on the Company’s business, financial condition or results of operations.

Furthermore, from time to time in the normal course of business, the Company is named in other litigation, including consumer class actions, intellectual property litigation and claims from prior distributors. Although it is not possible to predict the ultimate outcome of such litigation, based on the facts known to the Company, management believes that such litigation in the aggregate will likely not have a material adverse effect on the Company’s financial position or results of operations.

The Company evaluates, on a quarterly basis, developments in legal proceedings and other matters that could cause an increase or decrease in the amount of the liability that is accrued, if any, or in the amount of any related insurance reimbursements recorded. As of December 31, 2017, the Company’s condensed consolidated balance sheet includes accrued loss contingencies of approximately $1.9 million.

ACCUMULATED OTHER COMPREHENSIVE LOSS

12 Months Ended

Dec. 31, 2017

ACCUMULATED OTHER COMPREHENSIVE LOSS

ACCUMULATED OTHER COMPREHENSIVE LOSS

12.ACCUMULATED OTHER COMPREHENSIVE LOSS

The components of accumulated other comprehensive loss are as follows at December 31:

	2017		2016
Accumulated net unrealized loss on available-for-sale securities	$	841	$	193
Foreign currency translation adjustments, net of tax	15,818		23,056

Total accumulated other comprehensive loss	$	16,659	$	23,249

- 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.

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+ Details

TREASURY STOCK PURCHASE	12 Months Ended
TREASURY STOCK PURCHASE	Dec. 31, 2017
TREASURY STOCK PURCHASE
TREASURY STOCK PURCHASE	13.TREASURY STOCK PURCHASE On February 28, 2017, the Company’s Board of Directors authorized a new share repurchase program for the purchase of up to $500.0 million of the Company’s outstanding common stock (the “February 2017 Repurchase Plan”). During the year ended December 31, 2017, the Company purchased 4.6 million shares of common stock at an average purchase price of $54.91 per share, for a total amount of $249.9 million (excluding broker commissions), under the February 2017 Repurchase Plan. During the year ended December 31, 2017, 1.8 million shares of common stock were purchased from employees in lieu of cash payments for options exercised or withholding taxes due, for a total amount of $111.2 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 consolidated balance sheet at December 31, 2017.

STOCK-BASED COMPENSATION

12 Months Ended

Dec. 31, 2017

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 December 31, 2017: the Monster Beverage Corporation 2011 Omnibus Incentive Plan (the “2011 Omnibus Incentive Plan”), including the Monster Beverage Deferred Compensation Plan (the “Deferred Compensation Plan”) as a sub plan thereunder, and the Monster Beverage Corporation 2017 Compensation Plan for Non-Employee Directors (the “2017 Directors Plan”), including the Monster Beverage Deferred Compensation Plan for Non-Employee Directors (the “Non-Employee Director Deferral Plan”) as a sub plan thereunder.

The 2011 Omnibus Incentive Plan permits the granting of options, stock appreciation rights, restricted stock, restricted stock units, performance awards and other stock-based awards up to an aggregate of 43,500,000 shares of the common stock of the Company to employees or consultants of the Company and its subsidiaries. Shares authorized under the 2011 Omnibus Incentive Plan are reduced by 2.16 shares for each share granted or issued with respect to a Full Value Award. A Full Value Award is an award other than an incentive stock option, a non-qualified stock option, or a stock appreciation right, which is settled by the issuance of shares. Options granted under the 2011 Omnibus Incentive Plan may be incentive stock options under Section 422 of the Internal Revenue Code, as amended, or non-qualified stock options. The Compensation Committee of the Board of Directors (the “Compensation Committee”) has sole and exclusive authority to grant stock awards to all employees who are not new hires and to all new hires who are subject to Section 16 of the Exchange Act. The Compensation Committee and the Executive Committee of the Board of Directors (the “Executive Committee”) each independently has the authority to grant stock awards to new hires who are not Section 16 employees. Awards granted by the Executive Committee are not subject to approval or ratification by the Board or the Compensation Committee. Options granted under the 2011 Omnibus Incentive Plan generally vest over a five-year period from the grant date and are generally exercisable up to 10 years after the grant date. As of December 31, 2017, 19,978,932 shares of the Company’s common stock have been granted, net of cancellations, and 19,651,474 shares (as adjusted for Full Value Awards) of the Company’s common stock remain available for grant under the 2011 Omnibus Incentive Plan.

In 2016, the Company adopted the Deferred Compensation Plan (as a sub plan to the 2011 Omnibus Incentive Plan), pursuant to which eligible employees may elect to defer cash and/or equity based compensation and to receive the deferred amounts, together with an investment return (positive or negative), either at a pre-determined time in the future or upon termination of their employment with the Company or its subsidiaries or affiliates that are participating employers under the Deferred Compensation Plan, as provided under the Deferred Compensation Plan and in relevant deferral elections. Deferrals under the Deferred Compensation Plan are unfunded and unsecured. As of December 31, 2017, deferrals under the Deferred Compensation Plan are solely comprised of cash compensation and equity compensation coming due after December 31, 2018 and are not material in the aggregate.

In 2017, the Company adopted the 2017 Directors Plan, a successor plan to the 2009 Monster Beverage Corporation Stock Incentive Plan for Non-Employee Directors (the “2009 Directors Plan”). The 2017 Directors Plan permits the granting of stock options, stock appreciation rights, restricted shares or restricted stock units, deferred awards, dividend equivalents, and other share based-awards up to an aggregate of 1,250,000 shares of common stock of the Company to non-employee directors of the Company.

Each calendar year, a non-employee director will receive an annual retainer and annual equity award, as provided for in the 2017 Directors Plan, which may be modified from time to time. Currently, with respect to equity awards, each non-employee director receives an award of restricted stock units at each annual meeting of the Company’s stockholders or promptly thereafter. A non-employee director’s annual award of restricted stock units will generally vest on earliest to occur of: (a) the last business day immediately preceding the annual meeting of the Company’s stockholders in the calendar year following the calendar year in which the grant date occurs, (b) a Change of Control (as defined in the 2017 Directors Plan), (c) the non-employee director’s death, or (d) the date of the non-employee director’s separation from service due to disability, so long as the non-employee director remains a non-employee director through such date. The Board of Directors may in its discretion award non-employee directors stock options, stock appreciation rights, restricted stock, and other share-based awards in lieu of or in addition to restricted stock units. The Board of Directors may amend or terminate the 2017 Directors Plan at any time, subject to certain limitations set forth in the 2017 Directors Plan. As of December 31, 2017, 23,566 shares of the Company’s common stock had been granted under the 2017 Directors Plan, and 1,226,434 shares of the Company’s common stock remain available for grant.

In 2017, the Company adopted the Deferred Compensation Plan for Non-Employee Directors (as a sub plan to the 2017 Directors Plan), pursuant to which the Board of Directors may permit non-employee directors to elect (a “Deferral Election”), at such times and in accordance with rules and procedures (or sub-plan) adopted by the Board of Directors (which are intended to comply with Code Section 409A, as applicable), to receive all or any portion of such non-employee director’s compensation, whether payable in cash or in equity, on a deferred basis. The 2017 Directors Plan was adopted to effectuate any such deferrals. The 2017 Directors Plan is administered by the Board of Directors. Each award granted under the 2017 Directors Plan will be evidenced by a written agreement and will contain the terms and conditions that the Board of Directors deems appropriate.

Under the 2017 Directors Plan, the Board of Directors requires each non-employee director to satisfy the share ownership guidelines set forth below, as may be amended by the Board of Directors from time to time. The current share ownership guidelines provide that non-employee directors of the Company must:

Hold at least 9,000 shares of Company common stock. For this purpose, shares will be deemed held if deferred shares or deferred restricted stock units, to the extent vested.

The minimum stock ownership level must be achieved by each non-employee director by the third (3rd) anniversary of such non-employee director’s initial appointment to the Board of Directors.

Once achieved, ownership of the guideline amount should be maintained for so long as the non-employee director retains his or her seat on the Board of Directors.

There may be rare instances where these guidelines would place a hardship on a non-employee director. In these cases or in similar circumstances, the Board of Directors will make the final decision as to developing an alternative stock ownership guideline for a non-employee director that reflects the intention of these guidelines and his or her personal circumstances.

The Company recorded $52.3 million, $45.8 million and $32.7 million of compensation expense relating to stock options, restricted stock awards, SARs and restricted stock units during the years ended December 31, 2017, 2016 and 2015, respectively.

The excess tax benefit realized for tax deductions from non-qualified stock option exercises, disqualifying dispositions of incentive stock options, vesting of restricted stock units and restricted stock awards for the years ended December 31, 2017, 2016 and 2015 was $96.7 million, $20.8 million and $314.7 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 $96.7 million and $20.8 million in net income for the years ended December 31, 2017 and 2016, respectively. The excess tax benefits for the year ended December 31, 2015 of $314.7 million were recorded in additional paid-in-capital.

Stock Options

Under the Company’s stock-based compensation plans, all stock options granted as of December 31, 2017 were granted at prices based on the fair value of the Company’s common stock on the date of grant. The Company records compensation expense for employee stock options based on the estimated fair value of the options on the date of grant using the Black-Scholes-Merton option pricing formula with the assumptions included in the table below. The Company records compensation expense for non-employee stock options based on the estimated fair value of the options as of the earlier of (1) the date at which a commitment for performance by the non-employee to earn the stock option is reached or (2) the date at which the non-employee’s performance is complete, using the Black-Scholes-Merton option pricing formula with the assumptions included in the table below. The Company uses historical data to determine the exercise behavior, volatility and forfeiture rate of the options.

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

	2017	2016	2015
Dividend yield	0.0 %	0.0 %	0.0 %
Expected volatility	36.5 %	36.2 %	37.1 %
Risk-free interest rate	2.11 %	1.57 %	1.57 %
Expected term	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, 2017	22,643	$	23.55	5.8	$	474,739
Granted 01/01/17 - 03/31/17	1,319	$	45.94
Granted 04/01/17 - 06/30/17	26	$	49.71
Granted 07/01/17 - 09/30/17	12	$	56.08
Granted 10/01/17 - 12/31/17	77	$	61.71
Exercised	(5,754)	$	9.15
Cancelled or forfeited	(504)	$	40.09
Outstanding at December 31, 2017	17,819	$	29.62	6.1	$	600,032
Vested and expected to vest in the
future at December 31, 2017	16,863	$	28.81	6.0	$	581,425
Exercisable at December 31, 2017	9,282	$	18.68	4.4	$	414,052

The following table summarizes information about stock options outstanding and exercisable at December 31, 2017:

			Options Outstanding				Options Exercisable
Range of Exercise Prices ($)			Number Outstanding (In Thousands)	Weighted Average Remaining Contractual Term (Years)	Weighted Average Exercise Price ($)		Number Exercisable (In Thousands)	Weighted Average Exercise Price ($)
$ 4.51	-	$5.61	204	0.7	$	5.25	204	$	5.25
$ 5.94	-	$5.94	3,159	1.9	$	5.94	3,159	$	5.94
$ 6.02	-	$17.99	2,776	4.8	$	15.27	2,289	$	15.14
$ 18.64	-	$23.35	2,441	6.0	$	22.67	1,889	$	22.63
$ 23.68	-	$23.68	12	6.3	$	23.68	-	$	-
$ 36.05	-	$43.64	2,219	8.2	$	41.59	397	$	39.85
$ 43.99	-	$43.99	2,567	8.2	$	43.99	418	$	43.99
$ 44.73	-	$45.01	634	8.1	$	44.94	110	$	44.94
$ 45.16	-	$45.16	2,158	7.2	$	45.16	779	$	45.16
$ 45.55	-	$62.92	1,649	8.7	$	47.74	37	$	48.99

			17,819	6.1	$	29.62	9,282	$	18.68

The weighted-average grant-date fair value of options granted during the years ended December 31, 2017, 2016 and 2015 was $18.29 per share, $16.90 per share and $16.73 per share, respectively. The total intrinsic value of options exercised during the years ended December 31, 2017, 2016 and 2015 was $285.8 million, $70.6 million and $870.1 million, respectively.

Cash received from option exercises under all plans for the years ended December 31, 2017, 2016 and 2015 was approximately $52.6 million, $16.4 million and $49.2 million, respectively.

At December 31, 2017, there was $83.4 million of total unrecognized compensation expense related to non-vested options granted to employees under the Company’s share-based payment plans. That cost is expected to be recognized over a weighted-average period of 2.6 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. Total cash paid to settle restricted stock unit liabilities and the increase in the liabilities for future cash settlements during the years ended December 31, 2017 and 2016 were not material.

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

	Number of Shares (in thousands)	Weighted Average Grant-Date Fair Value
Non-vested at January 1, 2017	556	$	39.95
Granted 01/01/17- 03/31/17	252	$	46.27
Granted 04/01/17- 06/30/17	23	$	50.86
Granted 07/01/17- 09/30/17	-		-
Granted 10/01/17- 12/31/17	2	$	59.43
Vested	(300)	$	37.26
Forfeited/cancelled	(3)	$	27.02

Non-vested at December 31, 2017	530	$	45.09

The weighted-average grant-date fair value of restricted stock units and restricted stock awards granted during the years ended December 31, 2017, 2016 and 2015 was $46.74, $44.71 and $45.50 per share, respectively. As of December 31, 2017, 0.5 million of restricted stock units are expected to vest.

At December 31, 2017, total unrecognized compensation expense relating to non-vested restricted stock awards and non-vested restricted stock units was $14.2 million, which is expected to be recognized over a weighted-average period of 1.5 years.

Employee and Non-Employee Share-Based Compensation Expense

The table below shows the amounts recognized in the consolidated financial statements for the years ended December 31, 2017, 2016 and 2015 for share-based compensation related to employees and non-employees. Employee and non-employee share-based compensation expense of $52.3 million for the year ended December 31, 2017 is comprised of $8.7 million that relates to incentive stock options and $43.6 million that relates to non-qualified stock options and restricted units and awards. Employee and non-employee share-based compensation expense of $45.8 million for the year ended December 31, 2016 is comprised of $8.0 million that relates to incentive stock options and $37.8 million that relates to non-qualified stock options and restricted units and awards. Employee and non-employee share-based compensation expense of $32.7 million for the year ended December 31, 2015 is comprised of $6.2 million that relates to incentive stock options and $26.5 million that relates to non-qualified stock options and restricted units and awards.

	2017		2016		2015
Operating expenses	$	52,282	$	45,848	$	32,719

Total employee and non-employee share-based compensation expense included in income, before income tax	52,282		45,848		32,719
Less: Amount of income tax benefit recognized in earnings	(100,635)		(34,909)		(9,058)

Amount charged against net income	$	(48,353)	$	10,939	$	23,661

- Definition

The entire disclosure for compensation-related costs for equity-based compensation, which may include disclosure of policies, compensation plan details, allocation of equity compensation, incentive distributions, equity-based arrangements to obtain goods and services, deferred compensation arrangements, employee stock ownership plan details and employee stock purchase plan details.

+ References + Details

INCOME TAXES

12 Months Ended

Dec. 31, 2017

INCOME TAXES

INCOME TAXES

15.INCOME TAXES

On December 22, 2017, the President of the United States signed into law the Tax Cuts and Jobs Act (the “Tax Reform Act”). The legislation significantly changes U.S. tax law by, among other things, lowering corporate income tax rates, implementing a territorial tax system and imposing a repatriation tax on deemed repatriated earnings of foreign subsidiaries. The Tax Reform Act permanently reduces the U.S. corporate income tax rate from a maximum of 35% to a flat 21% rate, effective January 1, 2018. The SEC staff issued Staff Accounting Bulletin No. 118 (“SAB 118”) to address the application of U.S. GAAP in situations when a registrant does not have the necessary information available, prepared, or analyzed (including computations) in reasonable detail to complete the accounting for certain income tax effects of the Tax Reform Act. A company may select between one of three scenarios to determine a reasonable estimate arising from the Tax Reform Act. Those scenarios are (i) a final estimate which effectively closes the measurement window; (ii) a reasonable estimate leaving the measurement window open for future revisions; and (iii) no estimate as the law is still being analyzed. The Company was able to provide a reasonable estimate for the revaluation of deferred taxes and the effects of the toll charge on undistributed foreign subsidiary earnings and profits (“E&P”). As a result of the reduction in the U.S. corporate income tax rate from 35% to 21% under the Tax Reform Act, the Company revalued its net deferred tax assets at December 31, 2017, resulting in a provisional $39.8 million charge included in the provision for income taxes for the year ended December 31, 2017. The Tax Reform Act also provided for a one-time deemed mandatory repatriation of Post-1986 E&P through the year ended December 31, 2017. As a result, the Company recognized a provisional $2.1 million charge in the provision for income taxes for the year ended December 31, 2017 related to the deemed mandatory repatriation. The Company continues to evaluate the various provisions of Tax Reform Act, including, the global intangible low-taxed income (“GILTI”) and the foreign derived intangible income (“FDII”) provisions. The ultimate impact of the Tax Reform Act may differ from these provisional amounts, possibly materially, due to, among other things, additional analysis, changes in interpretations and assumptions the Company has made, additional regulatory guidance that may be issued, and any related actions the Company may take. The measurement period begins in the reporting period that includes the enactment date and ends when an entity has obtained, prepared, and analyzed the information that was needed in order to complete the accounting requirements under ASC Topic 740.

The domestic and foreign components of the Company’s income before provision for income taxes are as follows:

	Year Ended December 31,
	2017		2016		2015
Domestic*	$	1,062,713	$	1,029,763	$	859,039
Foreign*	138,910		49,922		32,509

Income before provision for income taxes	$	1,201,623	$	1,079,685	$	891,548

*After intercompany royalties, management fees and interest charges from the Company’s domestic to foreign entities of $42.5 million, $25.6 million and $29.4 million for the years ended December 31, 2017, 2016 and 2015, respectively.

Components of the provision for income taxes are as follows:

	Year Ended December 31,
	2017		2016		2015
Current:
Federal	$	243,127	$	212,283	$	548,018
State	43,252		35,756		88,671
Foreign	27,522		17,171		10,634

	313,901		265,210		647,323

Deferred:
Federal	61,797		87,360		(255,422)
State	3,062		15,254		(40,446)
Foreign	(4,579)		(9,709)		(5,420)

	60,280		92,905		(301,288)

Valuation allowance	6,764		8,885		(1,220)

	$	380,945	$	367,000	$	344,815

The differences in the total provision for income taxes that would result from applying the 35% federal statutory rate to income before provision for income taxes and the reported provision for income taxes are as follows:

	Year Ended December 31,
	2017		2016		2015
U.S. Federal tax expense at statutory rates	$	420,568	$	377,599	$	312,042
State income taxes, net of federal tax benefit	27,569		33,148		31,046
Permanent differences	10,356		954		5,285
Stock based compensation	(79,687)		(13,654)		3,203
Domestic production deduction	(22,229)		(21,447)		-
Deferred tax asset reduction (Tax Reform Act)	39,763		-		-
Other	3,736		(8,765)		(127)
Foreign rate differential	(25,895)		(9,720)		(5,414)
Valuation allowance	6,764		8,885		(1,220)

	$	380,945	$	367,000	$	344,815

Major components of the Company’s deferred tax assets (liabilities) at December 31, 2017 and 2016 are as follows:

	2017		2016
Deferred Tax Assets:
Reserve for sales returns	$	159	$	149
Reserve for inventory obsolescence	522		524
Reserve for marketing development fund	6,360		8,065
Capitalization of inventory costs	1,598		2,714
State franchise tax - current	2,050		18,016
Accrued compensation	1,473		1,212
Accrued other liabilities	3,917		1,817
Deferred revenue	93,321		145,319
Stock-based compensation	21,119		31,873
Foreign net operating loss carryforward	28,965		29,894
Prepaid supplies	7,273		8,022
Termination payments	70,637		98,244
Elimination Company Profit	-		2,843
Gain on intercompany transfer	6,793		7,274
Other deferred tax assets	3,449		376

Total gross deferred tax assets	$	247,636	$	356,342


Deferred Tax Liabilities:
Amortization of trademarks	$	(21,657)	$	(18,663)
Intangibles	(84,867)		(131,264)
State franchise tax - deferred	(7,617)		(12,946)
Other deferred tax liabilities	(62)		(1,101)
Depreciation	(8,260)		(6,736)

Total gross deferred tax liabilities	(122,463)		(170,710)


Valuation Allowance	(32,840)		(26,076)


Net deferred tax assets	$	92,333	$	159,556

During the years ended December 31, 2017, 2016 and 2015, the Company established full valuation allowances against certain deferred tax assets, resulting from cumulative net operating losses incurred by certain foreign subsidiaries of the Company. The effect of the valuation allowances and the subsequent related impact on the Company’s overall tax rate was to increase (decrease) the Company’s provision for income taxes by $6.8 million, $8.9 million and ($0.5) million for the years ended December 31, 2017, 2016 and 2015, respectively. At December 31, 2017, the Company had net operating loss carryforwards of approximately $105.2 million. Of this amount, $76.6 million may be carried forward indefinitely. The remaining $28.6 million of net operating loss carryforwards will begin to expire in 2018.

The following is a roll-forward of the Company’s total gross unrecognized tax benefits, not including interest and penalties, for the years ended December 31, 2017, 2016 and 2015:

	Gross Unrealized Tax Benefits
Balance at January 1, 2015	$	935
Additions for tax positions related to the current year	-
Additions for tax positions related to the prior year	-
Decreases for tax positions related to prior years	(464)

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 for tax positions related to prior years	(462)

Balance at December 31, 2016	$	9

Additions for tax positions related to the current year	-
Additions for tax positions related to the prior year	6,540
Decreases for tax positions related to prior years	(9)

Balance at December 31, 2017	$	6,540

The Company recognizes accrued interest and penalties related to unrecognized tax benefits in the provision for income taxes in the Company’s consolidated financial statements. As of December 31, 2017, the Company had accrued approximately $1.3 million in interest and penalties related to unrecognized tax benefits. If the Company were to prevail on all uncertain tax positions it would not have a significant impact on the Company’s effective tax rate.

It is expected that the amount of unrecognized tax benefit change within the next 12 months will not be significant.

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

On August 7, 2015, the Internal Revenue Service (the “IRS”) began its examination of the Company’s U.S. federal income tax returns for the years ended December 31, 2012 and 2013. On October 18, 2016, the IRS began its examination of the Company’s U.S. federal income tax return for the year ended December 31, 2014. On March 27, 2017, the IRS began its examination of the Company’s U.S. federal income tax return for the year ended December 31, 2015.

The Company is in various stages of examination with certain states and certain foreign jurisdictions. The Company’s 2012 through 2016 U.S. federal income tax returns are subject to examination by the IRS. The Company’s state income tax returns are subject to examination for the 2012 through 2016 tax years.

EARNINGS PER SHARE

12 Months Ended

Dec. 31, 2017

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 for the years ended December 31, 2017, 2016 and 2015 is presented below (in thousands):

	2017	2016	2015
Weighted-average shares outstanding:
Basic	566,782	587,874	566,448
Dilutive securities	10,359	11,945	11,310

Diluted	577,141	599,819	577,758

For the years ended December 31, 2017, 2016 and 2015, options and awards outstanding totaling 7.9 million shares, 5.7 million shares and 3.0 million shares, respectively, were excluded from the calculations as their effect would have been antidilutive.

EMPLOYEE BENEFIT PLAN	12 Months Ended
EMPLOYEE BENEFIT PLAN	Dec. 31, 2017
EMPLOYEE BENEFIT PLAN
EMPLOYEE BENEFIT PLAN	17.EMPLOYEE BENEFIT PLAN Employees of the Company may participate in the Monster Beverage Corporation 401(k) Plan, a defined contribution plan, which qualifies under Section 401(k) of the Internal Revenue Code. Participating employees may contribute up to 15% of their pretax salary up to statutory limits. The Company contributes 50% of the employee contribution, up to 6% of each employee’s earnings, which vest 25% each year for four years after the first anniversary date. Matching contributions were $2.5 million, $2.0 million and $0.7 million for the years ended December 31, 2017, 2016 and 2015, respectively.

SEGMENT INFORMATION

12 Months Ended

Dec. 31, 2017

SEGMENT INFORMATION

SEGMENT INFORMATION

18.SEGMENT INFORMATION

The Company has three operating and reportable segments, (i) Monster Energy® Drinks segment (“Monster Energy® Drinks”), which is comprised of our Monster Energy® drinks, Monster Hydro® energy drinks and Mutant® Super Soda drinks, (ii) Strategic Brands segment (“Strategic Brands”), which is comprised of the various energy drink brands acquired from The Coca-Cola Company (“TCCC”) in 2015 and (iii) Other segment (“Other”), the principal products of which include the non-energy brands disposed of as a result of the TCCC Transaction (effectively from January 1, 2015 to June 12, 2015), as well as certain products sold by AFF to independent third-party customers (the “AFF Third-Party Products”) (effectively from April 1, 2016).

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

The Company’s Strategic Brands segment primarily generates net operating revenues by selling “concentrates” and/or “beverage bases” to authorized bottling and canning operations. Such bottlers generally combine the concentrates and/or beverage bases with sweeteners, water and other ingredients to produce ready-to-drink packaged energy drinks. The ready-to-drink packaged energy drinks are then sold to other bottlers, full service distributors or retailers, including, retail grocery and specialty chains, wholesalers, club stores, mass merchandisers, convenience chains, food service customers, drug stores and the military. To a lesser extent, the Company’s Strategic Brands segment generates net operating revenues by selling ready-to-drink packaged energy drinks to bottlers and full service beverage distributors.

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

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

The net revenues derived from the Company’s reportable segments and other financial information related thereto for the years ended December 31, 2017, 2016 and 2015 are as follows:


	2017		2016		2015
Net sales:
Monster Energy® Drinks(1)	$	3,047,596	$	2,759,862	$	2,518,505
Strategic Brands	299,844		272,520		143,282
Other	21,605		17,011		60,777
Corporate and unallocated	-		-		-

	$	3,369,045	$	3,049,393	$	2,722,564



	2017		2016		2015

Operating Income:
Monster Energy® Drinks(1) (2)	$	1,264,579	$	1,148,427	$	836,053
Strategic Brands	174,458		163,121		89,841
Other(3)	5,583		2,295		165,233
Corporate and unallocated	(245,833)		(228,505)		(197,474)

	$	1,198,787	$	1,085,338	$	893,653



	2017		2016		2015

Income before tax:
Monster Energy® Drinks(1) (2)	$	1,264,555	$	1,148,640	$	836,429
Strategic Brands	174,442		163,084		89,825
Other(3)	5,583		2,295		165,233
Corporate and unallocated	(242,957)		(234,334)		(199,939)

	$	1,201,623	$	1,079,685	$	891,548

(1)

Includes $43.4 million, $40.3 million and $62.8 million for the years ended December 31, 2017, 2016 and 2015, respectively, related to the recognition of deferred revenue.

(2)

Includes $35.4 million, $79.8 million and $224.0 million for the years ended December 31, 2017, 2016 and 2015, respectively, related to distributor termination costs.

(3)

Includes $161.5 million gain on the sale of Monster Non-Energy for the year ended December 31, 2015.


	2017		2016		2015
Depreciation and amortization:
Monster Energy® Drinks	$	29,591	$	24,048	$	21,464
Stategic Brands	7,443		7,113		3,868
Other	4,608		3,457		231
Corporate and unallocated	7,245		6,227		5,297

	$	48,887	$	40,845	$	30,860

Corporate and unallocated expenses were $245.8 million for the year ended December 31, 2017 and included $156.3 million of payroll costs, of which $52.3 million was attributable to stock-based compensation expense (see Note 14, “Stock-Based Compensation”), $51.8 million of professional service expenses, including accounting and legal costs, $6.0 million of insurance costs and $31.7 million of other operating expenses. Corporate and unallocated expenses were $228.5 million for the year ended December 31, 2016 and included $128.0 million of payroll costs, of which $45.8 million was attributable to stock-based compensation expense (see Note 14, “Stock-Based Compensation”), $66.3 million of professional service expenses, including accounting and legal costs, $6.0 million of insurance costs and $28.2 million of other operating expenses. Corporate and unallocated expenses were $197.5 million for the year ended December 31, 2015 and included $109.8 million of payroll costs, of which $32.7 million was attributable to stock-based compensation expense (see Note 14, “Stock-Based Compensation”), $60.8 million of professional service expenses, including accounting and legal costs, $7.0 million of insurance costs and $19.9 million of other operating expenses.

TCCC, through the TCCC Subsidiaries, accounted for approximately 18%, 41% and 43% of the Company’s net sales for the years ended December 31, 2017, 2016 and 2015, respectively. As part of TCCC’s North America Refranchising initiative (the “North America Refranchising”), the territories of certain TCCC Subsidiaries have been transitioned to certain independent/non wholly-owned TCCC bottlers/distributors. Accordingly, the Company’s percentage of net sales classified as sales to the TCCC Subsidiaries decreased for the year ended December 31, 2017. CCBCC Operations, LLC accounted for approximately 13%, 9% and 6% of the Company’s net sales for the years ended December 31, 2017, 2016 and 2015, respectively.

Net sales to customers outside the United States amounted to $909.3 million, $733.7 million and $580.3 million for the years ended December 31, 2017, 2016 and 2015, respectively. Such sales were approximately 27%, 24% and 21% of net sales for the years ended December 31, 2017, 2016 and 2015, respectively.

Goodwill and other intangible assets for the Company’s reportable segments as of December 31, 2017 and 2016 are as follows:

	2017			2016
Goodwill and other intangible assets:
Monster Energy® Drinks	$		1,346,648	$	1,334,494
Strategic Brands	995,582			1,001,749
Other	23,498			28,035
Corporate and unallocated	-			-

	$	2,365,728		$	2,364,278

- 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=68060357&loc=d3e8981-108599

Reference 2: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
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Reference 3: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
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Reference 4: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
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Reference 5: http://www.xbrl.org/2003/role/presentationRef
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-URI http://asc.fasb.org/extlink&oid=68060357&loc=d3e8380-108599

Reference 6: http://www.xbrl.org/2003/role/presentationRef
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Reference 7: http://www.xbrl.org/2003/role/presentationRef
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Reference 8: http://www.xbrl.org/2003/role/presentationRef
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Reference 9: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
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Reference 10: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
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Reference 11: http://www.xbrl.org/2003/role/presentationRef
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Reference 12: http://www.xbrl.org/2003/role/presentationRef
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Reference 13: http://www.xbrl.org/2003/role/presentationRef
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Reference 14: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
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+ Details

RELATED PARTY TRANSACTIONS

12 Months Ended

Dec. 31, 2017

RELATED PARTY TRANSACTIONS

RELATED PARTY TRANSACTIONS

19.RELATED PARTY TRANSACTIONS

TCCC controls approximately 18% of the voting interests of the Company. TCCC, through the TCCC Subsidiaries and through certain TCCC affiliated companies (the “TCCC Affiliates”) purchases and distributes certain of the Company’s products both domestically and in certain international territories. The Company also pays TCCC a commission based on certain sales within the TCCC distribution network.

TCCC commissions, based on sales to the TCCC Affiliates for the years ended December 31, 2017, 2016 and 2015, were $45.0 million, $28.2 million and $18.0 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 years ended December 31, 2017, 2016 and 2015 were $594.1 million, $1,259.7 million and $1,151.7 million, respectively. As part of the North America Refranchising, the territories of certain TCCC Subsidiaries have been transitioned to certain independent/non wholly-owned TCCC bottlers/distributors. Accordingly, the Company’s net sales classified as sales to the TCCC Subsidiaries decreased for year ended December 31, 2017.

The Company also purchases concentrates from TCCC which are then sold to both the TCCC Affiliates and the TCCC Subsidiaries. Concentrate purchases from TCCC were $26.2 million, $26.2 million and $16.0 million for the years ended December 31, 2017, 2016 and 2015, respectively.

Certain TCCC Subsidiaries also contract manufacture certain of the Company’s Monster Energy® brand energy drinks as well as Mutant® Super Soda drinks. Contract manufacturing expenses were $11.8 million, $9.6 million and $6.9 million for the years ended December 31, 2017, 2016 and 2015, respectively.

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

	December 31, 2017		December 31, 2016

Accounts receivable, net	$	32,607	$	151,756
TCCC Transaction receivable	$	-	$	125,000
Accounts payable	$	(45,465)	$	(41,210)
Accrued promotional allowances	$	(5,884)	$	(27,056)

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 years ended December 31, 2017, 2016 and 2015 were $2.2 million, $1.5 million and $1.9 million, respectively.

SUBSEQUENT EVENTS	12 Months Ended
SUBSEQUENT EVENTS	Dec. 31, 2017
SUBSEQUENT EVENTS
SUBSEQUENT EVENTS	20.SUBSEQUENT EVENTS On February 27, 2018, the Company’s Board of Directors authorized a new share repurchase program for the purchase of up to $250.0 million of the Company’s outstanding common stock (the “February 2018 Repurchase Plan”). As $250.0 million remains available for grant under the February 2017 Repurchase Plan, the aggregate amount available to repurchase the Company’s common stock is currently $500.0 million.

QUARTERLY FINANCIAL DATA (Unaudited)

12 Months Ended

Dec. 31, 2017

QUARTERLY FINANCIAL DATA (Unaudited)

QUARTERLY FINANCIAL DATA (Unaudited)

21.QUARTERLY FINANCIAL DATA (Unaudited)

							Net Income per Common Share
	Net Sales		Gross Profit		Net Income		Basic		Diluted
Quarter ended:
March 31, 2017	$	742,146	$	480,874	$	177,980	$	0.31	$	0.31
June 30, 2017	907,068		583,497		222,633		$	0.39	$	0.39
September 30, 2017	909,476		569,709		218,744		$	0.39	$	0.38
December 31, 2017	810,355		503,610		201,321		$	0.36	$	0.35

	$	3,369,045	$	2,137,690	$	820,678


Quarter ended:
March 31, 2016	$	680,186	$	423,098	$	163,877	$	0.27	$	0.26
June 30, 2016	827,488		517,814		184,219		$	0.31	$	0.30
September 30, 2016	787,954		502,975		191,643		$	0.34	$	0.33
December 31, 2016	753,765		498,113		172,946		$	0.30	$	0.30

	$	3,049,393	$	1,942,000	$	712,685

Certain of the figures reported above may differ from previously reported figures for individual quarters due to rounding.

SCHEDULE II - VALUATION AND QUALIFYING ACCOUNTS

12 Months Ended

Dec. 31, 2017

SCHEDULE II - VALUATION AND QUALIFYING ACCOUNTS

SCHEDULE II - VALUATION AND QUALIFYING ACCOUNTS

Description	Balance at beginning of period		Charged to cost and expenses		Deductions		Balance at end of period

Allowance for doubtful accounts, sales returns and cash discounts:

2017	$	1,121	$	8,364	$	(8,380)	$	1,105
2016	$	1,248	$	7,389	$	(7,516)	$	1,121
2015	$	1,704	$	8,407	$	(8,863)	$	1,248

Allowance on Deferred Tax Assets and Unrecognized Tax Benefits:

2017	$	26,086	$	14,594	$	-	$	40,680
2016	$	17,846	$	8,240	$	-	$	26,086
2015	$	19,786	$	(1,940)	$	-	$	17,846

ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies)	12 Months Ended
	Dec. 31, 2017
ADDITIONS TO SIGNIFICANT ACCOUNTING POLICIES
Basis of Presentation	Basis of Presentation – The accompanying consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America (“GAAP”) and include the accounts of the Company and its consolidated subsidiaries.
Principles of Consolidation	Principles of Consolidation – The Company consolidates all entities that it controls by ownership of a majority voting interest. All intercompany balances and transactions have been eliminated in consolidation.
Business Combinations	Business Combinations – Business acquisitions are accounted for in accordance with Financial Accounting Standards Board (“FASB”) Accounting Standards Codification (“ASC”) 805 “Business Combinations”. FASB ASC 805 requires the reporting entity to identify the acquirer, determine the acquisition date, recognize and measure the identifiable tangible and intangible assets acquired, the liabilities assumed and any non-controlling interest in the acquired entity, and recognize and measure goodwill or a gain from the purchase. The acquiree’s results are included in the Company’s consolidated financial statements from the date of acquisition. Assets acquired and liabilities assumed are recorded at their fair values and the excess of the purchase price over the amounts assigned is recorded as goodwill. Adjustments to fair value assessments are recorded to goodwill over the measurement period (not longer than twelve months). The acquisition method also requires that acquisition-related transaction and post-acquisition restructuring costs be charged to expense and requires the Company to recognize and measure certain assets and liabilities including those arising from contingencies and contingent consideration in a business combination.
Cash and Cash Equivalents	Cash and Cash Equivalents – The Company considers all highly liquid investments with an original maturity of three months or less from date of purchase to be cash equivalents. Throughout the year, the Company has had amounts on deposit at financial institutions that exceed the federally insured limits. The Company has not experienced any loss as a result of these deposits and does not expect to incur any losses in the future.
Investments	Investments – The Company’s investments in debt securities are classified as either held-to-maturity, available-for-sale or trading, in accordance with FASB ASC 320. Held-to-maturity securities are those securities that the Company has the positive intent and ability to hold until maturity. Trading securities are those securities that the Company intends to sell in the near term. All other securities not included in the held-to-maturity or trading category are classified as available-for-sale. Held-to-maturity securities are recorded at amortized cost which approximates fair market value. Trading securities are carried at fair value with unrealized gains and losses charged to earnings. Available-for-sale securities are carried at fair value with unrealized gains and losses recorded within accumulated other comprehensive loss as a separate component of stockholders’ equity. FASB ASC 820 defines fair value as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. FASB ASC 820 also establishes a fair value hierarchy which requires an entity to maximize the use of observable inputs, where available (see Note 4). Under FASB ASC 320-10-35, a security is considered to be other-than-temporarily impaired if the present value of cash flows expected to be collected are less than the security’s amortized cost basis (the difference being defined as the “Credit Loss”) or if the fair value of the security is less than the security’s amortized cost basis and the investor intends, or will be required, to sell the security before recovery of the security’s amortized cost basis. If an other-than-temporary impairment exists, the charge to earnings is limited to the amount of Credit Loss if the investor does not intend to sell the security, and will not be required to sell the security, before recovery of the security’s amortized cost basis. Any remaining difference between fair value and amortized cost is recognized in other comprehensive loss, net of applicable taxes. The Company evaluates whether the decline in fair value of its investments is other-than-temporary at each quarter-end. This evaluation consists of a review by management, and includes market pricing information and maturity dates for the securities held, market and economic trends in the industry and information on the issuer’s financial condition and, if applicable, information on the guarantors’ financial condition. Factors considered in determining whether a loss is temporary include the length of time and extent to which the investment’s fair value has been less than its cost basis, the financial condition and near-term prospects of the issuer and guarantors, including any specific events which may influence the operations of the issuer and the Company’s intent and ability to retain the investment for a reasonable period of time sufficient to allow for any anticipated recovery of fair value.
Accounts Receivable	Accounts Receivable – The Company evaluates the collectability of its trade accounts receivable based on a number of factors. In circumstances where the Company becomes aware of a specific customer’s inability to meet its financial obligations to the Company, a specific reserve for bad debts is estimated and recorded, which reduces the recognized receivable to the estimated amount the Company believes will ultimately be collected. In addition to specific customer identification of potential bad debts, bad debt charges are recorded based on the Company’s recent loss history and an overall assessment of past due trade accounts receivable outstanding. In accordance with FASB ASC 210-20-45, in its consolidated balance sheets, the Company has presented accounts receivable, net of promotional allowances, only for those customers that it allows net settlement. All other accounts receivable and related promotional allowances are shown on a gross basis.
Inventories	Inventories – Inventories are valued at the lower of first-in, first-out, cost or market value (net realizable value).
Property and Equipment	Property and Equipment – Property and equipment are stated at cost. Depreciation of furniture and fixtures, office and computer equipment, computer software, equipment, and vehicles is based on their estimated useful lives (three to ten years) and is calculated using the straight-line method. Amortization of leasehold improvements is based on the lesser of their estimated useful lives or the terms of the related leases and is calculated using the straight-line method. Normal repairs and maintenance costs are expensed as incurred. Expenditures that materially increase values or extend useful lives are capitalized. The related costs and accumulated depreciation of disposed assets are eliminated and any resulting gain or loss on disposition is included in net income.
Goodwill	Goodwill – The Company records goodwill when the consideration paid for an acquisition exceeds the fair value of net tangible and intangible assets acquired, including related tax effects. Goodwill is not amortized; instead goodwill is tested for impairment on an annual basis, or more frequently if the Company believes indicators of impairment exist. The Company first assesses qualitative factors to determine whether it is more-likely-than-not that the fair value of a reporting unit is less than its carrying value. If the Company determines that the fair value is less than the carrying value, the Company will use a two-step process to determine the amount of goodwill impairment. The first step requires comparing the fair value of the reporting unit to its net book value, including goodwill. A potential impairment exists if the fair value of the reporting unit is lower than its net book value. The second step of the process, performed only if a potential impairment exists, involves determining the difference between the fair value of the reporting unit’s net assets, other than goodwill, and the fair value of the reporting unit. An impairment charge is recognized for the excess of the carrying value of goodwill over its implied fair value. For the fiscal years ended December 31, 2017, 2016 and 2015 there were no impairments recorded.
Other Intangibles	Other Intangibles – Other Intangibles are comprised primarily of trademarks that represent the Company’s exclusive ownership of the Monster Energy®, ®, Monster Energy Ultra®, Monster Rehab®, Mutant®, Java Monster®, Unleash the Beast!®, Monster Hydro®, Monster Energy Extra Strength Nitrous Technology®, Muscle Monster®, Punch Monster®, Juice Monster®, Espresso MonsterTM, Caffé MonsterTM, M3(stylized)®, Übermonster®, BU®, Nalu®, NOS®, Full Throttle®, Burn®, Mother®, Ultra Energy®, Play® and Power Play(stylized)®, Gladiator®, Relentless® Samurai® and BPM® trademarks, all used in connection with the manufacture, sale and distribution of beverages. The Company also owns a number of other trademarks in the United States, as well as in a number of countries around the world. In accordance with FASB ASC 350, intangible assets with indefinite lives are not amortized but instead are measured for impairment at least annually, or when events indicate that an impairment exists. The Company calculates impairment as the excess of the carrying value of its indefinite-lived assets over their estimated fair value. If the carrying value exceeds the estimate of fair value a write-down is recorded. The Company amortizes its trademarks with finite useful lives over their respective useful lives. For the fiscal years ended December 31, 2017, 2016 and 2015 there were no impairments recorded.
Long-Lived Assets	Long-Lived Assets – Management regularly reviews property and equipment and other long-lived assets, including certain definite-lived intangible assets, for possible impairment. This review occurs annually, or more frequently if events or changes in circumstances indicate the carrying amount of the asset may not be recoverable. If there is indication of impairment, management then prepares an estimate of future cash flows (undiscounted and without interest charges) expected to result from the use of the asset and its eventual disposition. If these cash flows are less than the carrying amount of the asset, an impairment loss is recognized to write down the asset to its estimated fair value. The fair value is estimated using the present value of the future cash flows discounted at a rate commensurate with management’s estimates of the business risks. Preparation of estimated expected future cash flows is inherently subjective and is based on management’s best estimate of assumptions concerning expected future conditions. For the fiscal years ended December 31, 2017, 2016 and 2015, there were no impairment indicators identified. Long-lived assets held for sale are recorded at the lower of their carrying amount or fair value less cost to sell.
Foreign Currency Translation and Transactions	Foreign Currency Translation and Transactions – The accounts of the Company’s foreign subsidiaries are translated in accordance with FASB ASC 830. Foreign currency transaction gains and losses are recognized in other expense, net, at the time they occur. Net foreign currency exchange gains or losses resulting from the translation of assets and liabilities of foreign subsidiaries whose functional currency is not the U.S. dollar are recorded as a part of accumulated other comprehensive loss in stockholders’ equity. Unrealized foreign currency exchange gains and losses on certain intercompany transactions that are of a long-term investment nature (i.e., settlement is not planned or anticipated in the foreseeable future) are also recorded in accumulated other comprehensive loss in stockholders’ equity. During the years ended December 31, 2017, 2016 and 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 outstanding as of December 31, 2017 have terms of one month or less. We do 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 FASB ASC 815. Therefore, gains and losses on the Company’s foreign currency exchange contracts are recognized in other expense, net, in the consolidated statements of income, and are largely offset by the changes in the fair value of the underlying economically hedged item. For the years ended December 31, 2017, 2016 and 2015, aggregate foreign currency transaction losses, including the gains or losses on forward currency exchange contracts, amounted to $3.3 million, $9.7 million and $5.5 million, respectively, and have been recorded in other income (expense), net in the accompanying consolidated statements of income.
Revenue Recognition	Revenue Recognition – The Company recognizes revenue when persuasive evidence of an arrangement exists, delivery has occurred, the sales price is fixed or determinable and collectability is reasonably assured. Generally, ownership of and title to the Company’s finished products passes to customers upon delivery of the products to customers. Certain of the Company’s distributors may also perform a separate function as a co-packer on the Company’s behalf. In such cases, ownership of and title to the Company’s products that are co-packed on the Company’s behalf by those co-packers who are also distributors, passes to such distributors when the Company is notified by them that they have taken transfer or possession of the relevant portion of the Company’s finished goods. Revenue for the Strategic Brands segment is generally recognized when title to the concentrate is transferred to the customer. In particular, title to the concentrate usually passes upon shipment to the customers’ locations, as determined by the specific sales terms of the transactions. Net sales have been determined after deduction of promotional and other allowances in accordance with FASB ASC 605-50. The Company’s promotional and other allowances are calculated based on various programs with its distributors and retail customers, and accruals are established during the year for the anticipated liabilities. These accruals are based on agreed upon terms as well as the Company’s historical experience with similar programs and require management’s judgment with respect to estimating consumer participation and/or distributor and retail customer performance levels. Differences between such estimated expense and actual expenses for promotional and other allowance costs have historically been insignificant and are recognized in earnings in the period such differences are determined. Amounts received pursuant to new and/or amended distribution agreements entered into with certain distributors, relating to the costs associated with terminating the Company’s prior distributors, are accounted for as revenue ratably over the anticipated life of the respective distribution agreement, generally 20 years. The Company also enters into license agreements that generate revenues associated with third-party sales of non-beverage products bearing our trademarks including, but not limited to, clothing hats, t-shirts, jackets, helmets and automotive wheels. Management believes that adequate provision has been made for cash discounts, returns and spoilage based on the Company’s historical experience.
Cost of Sales	Cost of Sales – Cost of sales consists of the costs of concentrates and/or beverage bases, the costs of raw materials utilized in the manufacture of products, co-packing fees, repacking fees, in-bound freight charges, as well as certain internal transfer costs, warehouse expenses incurred prior to the manufacture of the Company’s finished products and certain quality control costs. Raw materials account for the largest portion of the cost of sales. Raw materials include cans, bottles, other containers, flavors, ingredients and packaging materials.
Operating Expenses	Operating Expenses – Operating expenses include selling expenses such as distribution expenses to transport products to customers and warehousing expenses after manufacture, as well as expenses for advertising, sampling and in-store demonstration costs, costs for merchandise displays, point-of-sale materials and premium items, sponsorship expenses, other marketing expenses and design expenses. Operating expenses also include such costs as payroll costs, travel costs, professional service fees including legal fees, termination payments made to certain of the Company’s prior distributors, depreciation and other general and administrative costs.
Freight-Out Costs	Freight-Out Costs – For the years ended December 31, 2017, 2016 and 2015, freight-out costs amounted to $91.9 million, $83.6 million and $87.0 million, respectively, and have been recorded in operating expenses in the accompanying consolidated statements of income.
Advertising and Promotional Expenses	Advertising and Promotional Expenses – The Company accounts for advertising production costs by expensing such production costs the first time the related advertising takes place. A significant amount of the Company’s promotional expenses result from payments under endorsement and sponsorship contracts. Accounting for endorsement and sponsorship payments is based upon specific contract provisions. Generally, endorsement and sponsorship payments are expensed on a straight-line basis over the term of the contract after giving recognition to periodic performance compliance provisions of the contracts. Advertising and promotional expenses, including, but not limited to, production costs amounted to $324.0 million, $270.6 million and $209.7 million for the years ended December 31, 2017, 2016 and 2015, respectively. Advertising and promotional expenses are included in operating expenses in the accompanying consolidated statements of income.
Income Taxes	Income Taxes – The Company utilizes the liability method of accounting for income taxes as set forth in FASB ASC 740. Under the liability method, deferred taxes are determined based on the temporary differences between the financial statement and tax basis of assets and liabilities using tax rates expected to be in effect during the years in which the basis differences reverse. A valuation allowance is recorded when it is more likely than not that some of the deferred tax assets will not be realized. In determining the need for valuation allowances the Company considers projected future taxable income and the availability of tax planning strategies. If in the future the Company determines that it would not be able to realize its recorded deferred tax assets, an increase in the valuation allowance would be recorded, decreasing earnings in the period in which such determination is made. The Company assesses its income tax positions and records tax benefits for all years subject to examination based upon the Company’s evaluation of the facts, circumstances and information available at the reporting date. For those tax positions where there is a greater than 50% likelihood that a tax benefit will be sustained, the Company has recorded the largest amount of tax benefit that may potentially be realized upon ultimate settlement with a taxing authority that has full knowledge of all relevant information. For those income tax positions where there is less than 50% likelihood that a tax benefit will be sustained, no tax benefit has been recognized in the financial statements.
Stock-Based Compensation	Stock-Based Compensation – The Company accounts for stock-based compensation under the provisions of FASB ASC 718. 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. 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. 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. (See Note 14).
Net Income Per Common Share	Net Income Per Common Share – In accordance with FASB ASC 260, net income per common share, on a basic and diluted basis, is presented for all periods. Basic net income per share is computed by dividing net income by the weighted average number of common shares outstanding during each period. Diluted net income per share is computed by dividing net income by the weighted average number of common and dilutive common equivalent shares outstanding. The calculation of common equivalent shares assumes the exercise of dilutive stock options, net of assumed treasury share repurchases at average market prices, as applicable.
Concentration of Risk	Concentration of Risk – Certain of the Company’s products utilize components (raw materials and/or co-packing services) from a limited number of sources. A disruption in the supply of such components could significantly affect the Company’s revenues from those products, as alternative sources of such components may not be available at commercially reasonable rates or within a reasonably short time period. The Company continues to endeavor to secure the availability of alternative sources for such components and minimize the risk of any disruption in production. TCCC, through certain wholly-owned subsidiaries (the “TCCC Subsidiaries”), accounted for approximately 18%, 41% and 43% of the Company’s net sales for the years ended December 31, 2017, 2016 and 2015, respectively. As part of TCCC’s North America Refranchising initiative (the “North America Refranchising”), the territories of certain TCCC Subsidiaries have been transitioned to certain independent/non wholly-owned TCCC bottlers/distributors. Accordingly, the Company’s percentage of net sales classified as sales to the TCCC Subsidiaries decreased for the year ended December 31, 2017. CCBCC Operations, LLC accounted for approximately 13%, 9% and 6% of the Company’s net sales for the years ended December 31, 2017, 2016 and 2015, respectively.
Credit Risk	Credit Risk – The Company sells its products nationally and internationally, primarily to full service beverage distributors, retail grocery and specialty chains, wholesalers, club stores, mass merchandisers, convenience chains and food service customers. The Company performs ongoing credit evaluations of its customers and generally does not require collateral. The Company maintains reserves for estimated credit losses, and historically, such losses have been within management’s expectations.
Fair Value of Financial Instruments	Fair Value of Financial Instruments – The carrying value of the Company’s financial instruments, including cash and cash equivalents, accounts receivable, accounts payable and accrued liabilities, approximate fair value due to the relatively short maturity of the respective instruments.
Use of Estimates	Use of Estimates – The preparation of the consolidated financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates.
Recent Accounting Pronouncements	Recent Accounting Pronouncements – In May 2017, the FASB issued ASU No. 2017-09, “Compensation–Stock Compensation (Topic 718): Scope of Modification Accounting,” clarifying when a change to the terms or conditions of a share-based payment award must be accounted for as a modification. The new guidance requires modification accounting if the fair value, vesting condition or the classification of the award is not the same immediately before and after a change to the terms and conditions of the award. The new guidance is effective for the Company on a prospective basis beginning on January 1, 2018, with early adoption permitted. The adoption of ASU No. 2017-09 will not have a material impact on the Company’s financial position, results of operations and liquidity. In January 2017, the FASB issued ASU No. 2017-01, “Business Combinations (Topic 805): Clarifying the Definition of a Business”, which clarifies the definition of a business with the objective of adding guidance to assist entities with evaluating whether transactions should be accounted for as acquisitions (or disposals) of assets or businesses. This amendment is effective for fiscal years beginning after December 15, 2017, and interim periods within those fiscal years. Early adoption is permitted. The adoption of ASU No. 2017-01 will not have a material impact on the Company’s financial position, results of operations and liquidity. In January 2017, the FASB issued ASU No. 2017-04, “Intangibles and Other (Topic 350): Simplifying the Test for Goodwill Impairment”, which eliminates the requirement to calculate the implied fair value of goodwill, but rather requires an entity to record an impairment charge based on the excess of a reporting unit’s carrying value over its fair value. This amendment is effective for annual or interim goodwill impairment tests in fiscal years beginning after December 15, 2019. Early adoption is permitted. The Company is currently evaluating the impact of ASU No. 2017-04 on its financial position, results of operations and liquidity. In October 2016, the FASB issued ASU No. 2016-16, “Income Taxes (Topic 740): Intra-Entity Transfers of Assets Other Than Inventory”, in an effort to improve the accounting for the income tax consequences of intra-entity transfers of assets other than inventory. Current GAAP prohibits the recognition of current and deferred income taxes for an intra-entity asset transfer until the asset has been sold to an outside party. FASB ASU No. 2016-16 establishes the requirement that an entity recognize the income tax consequences of an intra-entity transfer of an asset other than inventory when the transfer occurs. ASU No. 2016-16 is effective for financial statements issued for annual periods beginning after December 15, 2017 and interim periods within those annual periods. Earlier application is permitted as of the beginning of an interim or annual reporting period, with any adjustments reflected as of the beginning of the fiscal year of adoption. The Company is currently evaluating the impact of ASU No. 2016-16 on its financial position, results of operations and liquidity. In August 2016, the FASB issued ASU No. 2016-15, “Statement of Cash Flows (Topic 230)”. The new guidance is intended to reduce diversity in practice in how certain transactions are classified in the statement of cash flows. ASU No. 2016-15 is effective for fiscal years, and interim periods within those years, beginning after December 15, 2017. Early adoption is permitted, provided that all of the amendments are adopted in the same period. The guidance requires application using a retrospective transition method. The Company is currently evaluating the impact of ASU No. 2016-15 on its financial position, results of operations and liquidity. In June 2016, the FASB issued ASU No. 2016-13, “Financial Instruments - Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments”. The accounting standard changes the methodology for measuring credit losses on financial instruments and the timing when such losses are recorded. ASU No. 2016-13 is effective for fiscal years, and interim periods within those years, beginning after December 15, 2019. Early adoption is permitted for fiscal years, and interim periods within those years, beginning after December 15, 2018. The Company is currently evaluating the impact of ASU No. 2016-13 on its financial position, results of operations and liquidity. In February 2016, the FASB issued ASU No. 2016-02, “Leases (Topic 842)”. This update is intended to increase transparency and comparability among organizations by recognizing lease assets and lease liabilities on the balance sheet and disclosing key information about leasing arrangements. This update is effective for annual and interim reporting periods beginning after December 15, 2018, including interim periods within those fiscal years. Early adoption is permitted. The Company is currently evaluating the impact of ASU No. 2016-02 on its financial position, results of operations and liquidity. In May 2014, the FASB issued ASU No. 2014-09, “Revenue from Contracts with Customers (Topic 606)”, which supersedes previous revenue recognition guidance. ASU No. 2014-09 requires that a company recognize revenue at an amount that reflects the consideration to which the company expects to be entitled in exchange for transferring goods or services to a customer. In applying the new guidance, a company will (i) identify the contract(s) with a customer; (ii) identify the performance obligations in the contract; (iii) determine the transaction price; (iv) allocate the transaction price to the contract’s performance obligations; and (v) recognize revenue when (or as) the entity satisfies a performance obligation. This guidance 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 majority of the Company’s revenue arrangements generally consist of a single performance obligation to transfer promised goods. Based on the Company’s evaluation process and review of its contracts with customers, the timing and amount of revenue recognized based on ASU No. 2014-09 is consistent with the Company’s revenue recognition policy under previous guidance. The Company adopted the new standard effective January 1, 2018, using the modified retrospective approach, and will expand its consolidated financial statement disclosures in order to comply with ASU No. 2014-09. The Company has completed its evaluation and determined the adoption of ASU No. 2014-09 will not have a material impact on its financial position, results of operations and liquidity.

ACQUISITIONS AND DIVESTITURES (Tables)

12 Months Ended

Dec. 31, 2017

ACQUISITIONS AND DIVESTITURES

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

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

Schedule of pro forma condensed combined financial information

	Year Ended December 31, 2015
				Pro Forma Adjustments
	Monster Beverage Corporation as reported¹	KO Energy²		Disposal of Monster Non- Energy³	Other	Pro Forma Combined
Net sales	$ 2,722,564	$ 138,127		$ (60,778)	$ 8,887	$ 2,808,800
Net income	546,733	100,575	4	(101,618)	(30,390)	515,300

¹Includes net sales of $143.3 million and net income of $55.2 million (tax affected) related to the acquired KO Energy assets since the date of acquisition, June 12, 2015.

³Includes results through June 12, 2015. Net income includes gain recognized on the sale of Monster Non-Energy of $161.5 million.

Schedule of other pro-forma adjustments

	Year Ended December 31, 2015¹
Net sales:
Amortization of deferred revenue	$	8,887

Net income:

Amortization of deferred revenue	$	8,887
To record sales commissions	(15,470)
To record amortization of definite lived KO Energy intangibles	(3,126)

To eliminate TCCC Transaction expenses	15,495

Estimated provision for income taxes on pro forma adjustments	2,545

Estimated provision for income taxes on KO Energy income	(38,721)

Total	$	(30,390)

¹Includes amortization of deferred revenue, sales commissions and amortization of intangibles through June 12, 2015, the date the TCCC Transaction was consummated.

INVESTMENTS (Tables)

12 Months Ended

Dec. 31, 2017

INVESTMENTS

Summary of investments in available-for-sale

December 31, 2017	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
Available-for-sale
Short-term:
Commercial paper	$	81,026	$	-	$	-	$	81,026	$	-	$	-
Certificates of deposit	11,869		-		-		11,869		-		-
Municipal securities	469,604		1		740		468,865		740		-
U.S. government agency securities	61,307		-		88		61,219		88		-
Variable rate demand notes	49,954		-		-		49,954		-		-
Long-term:
U.S. government agency securities	2,369		-		3		2,366		3		-

Total	$	676,129	$	1	$	831	$	675,299	$	831	$	-


December 31, 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

Available-for-sale
Short-term:
Commercial paper	$	40,382	$	-	$	-	$	40,382	$	-	$	-
Municipal securities	140,379		-		181		140,198		181		-
U.S. government agency securities	26,057		-		6		26,051		6		-
Variable rate demand notes	13,923		-		-		13,923		-		-
Long-term:
Municipal securities	2,403		-		9		2,394		9		-

Total	$	223,144	$	-	$	196	$	222,948	$	196	$	-

Summarizes the underlying contractual maturities of the Company's investments

	December 31, 2017				December 31, 2016

	Amortized Cost		Fair Value		Amortized Cost		Fair Value
Less than 1 year:
Commercial paper	$	81,026	$	81,026	$	40,382	$	40,382
Municipal securities	469,604		468,865		140,379		140,198
U.S. government agency securities	61,307		61,219		26,057		26,051
Certificates of deposit	11,869		11,869		-		-
Due 1 -10 years:
Municipal securities	-		-		2,403		2,394
U.S. government agency securities	2,369		2,366		-		-
Variable rate demand notes	6,366		6,366		3,917		3,917
Due 11 - 20 years:
Variable rate demand notes	28,377		28,377		6,003		6,003
Due 21 - 30 years:
Variable rate demand notes	15,211		15,211		4,003		4,003

Total	$	676,129	$	675,299	$	223,144	$	222,948

Schedule of net gain recognized through earnings on trading securities

	2017		2016		2015
Gain (loss) on transfer from available-for-sale to trading	$	-	$	-	$	-
Gain on trading securities sold	-		-		250
(Loss) gain on trading securities held	-		-		-

Gain on trading securites	$	-	$	-	$	250

FAIR VALUE OF CERTAIN FINANCIAL ASSETS AND LIABILITIES (Tables)

12 Months Ended

Dec. 31, 2017

FAIR VALUE OF CERTAIN FINANCIAL ASSETS AND LIABILITIES

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

December 31, 2017	Level 1		Level 2			Level 3		Total

Cash	$	310,885	$	-		$	-	$	310,885
Money market funds	112,848		-			-		112,848
Certificates of deposit	-		15,720			-		15,720
Commercial paper	-		99,903			-		99,903
Variable rate demand notes	-		49,954			-		49,954
Municipal securities	-		529,984			-		529,984
U.S. government agency securities	-		81,230			-		81,230
U.S. Treasuries	-		3,397			-		3,397
Foreign currency derivatives	-		(1,484		)	-		(1,484		)

Total	$	423,733	$	778,704		$	-	$	1,202,437


Amounts included in:
Cash and cash equivalents	$	423,733	$	104,889		$	-	$	528,622
Short-term investments	-		672,933			-		672,933
Accounts receivable, net	-		95			-		95
Investments	-		2,366			-		2,366
Accrued liabilities	-		(1,579		)	-		(1,579		)

Total	$	423,733	$	778,704		$	-	$	1,202,437


December 31, 2016	Level 1		Level 2			Level 3		Total

Cash	$	278,972	$	-		$	-	$	278,972
Money market funds	76,112		-			-		76,112
Commercial paper	-		47,855			-		47,855
Variable rate demand notes	-		13,923			-		13,923
Municipal securities	-		157,617			-		157,617
U.S. government agency securities	-		26,051			-		26,051
Foreign currency derivatives	-		(528		)	-		(528		)

Total	$	355,084	$	244,918		$	-	$	600,002


Amounts included in:
Cash and cash equivalents	$	355,084	$	22,498		$	-	$	377,582
Short-term investments	-		220,554			-		220,554
Accounts receivable, net	-		236			-		236
Investments	-		2,394			-		2,394
Accrued liabilities	-		(764		)	-		(764		)

Total	$	355,084	$	244,918		$	-	$	600,002

DERIVATIVE INSTRUMENTS AND HEDGING ACTIVITIES (Tables)

12 Months Ended

Dec. 31, 2017

DERIVATIVE INSTRUMENTS AND HEDGING ACTIVITIES

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

December 31, 2017
Derivatives not designated as hedging instruments under FASB ASC 815-20	Notional Amount		Fair Value		Balance Sheet Location
Assets:
Foreign currency exchange contracts:
Receive CAD/pay USD	$	4,892	$	61	Accounts receivable, net
Receive SGD/pay USD	223		2		Accounts receivable, net
Receive NOK/pay USD	1,534		18		Accounts receivable, net
Receive USD/pay BRL	1,806		1		Accounts receivable, net
Receive USD/pay COP	2,803		13		Accounts receivable, net



Liabilities:
Foreign currency exchange contracts:
Receive USD/pay GBP	$	31,342	$	(334)	Accrued liabilities
Receive USD/pay EUR	65,131		(642)		Accrued liabilities
Receive USD/pay AUD	17,238		(177)		Accrued liabilities
Receive USD/pay ZAR	21,311		(222)		Accrued liabilities
Receive USD/pay MXN	7,720		(126)		Accrued liabilities
Receive USD/pay NZD	1,826		(18)		Accrued liabilities
Receive USD/pay TRY	5,483		(52)		Accrued liabilities
Receive USD/pay CLP	1,112		(8)		Accrued liabilities

December 31, 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 CAD/pay USD	$	22,314	$	173	Accounts receivable, net
Receive SGD/pay USD	7,915		24		Accounts receivable, net
Receive NOK/pay USD	2,138		28		Accounts receivable, net
Receive USD/pay CLP	4,094		9		Accounts receivable, net
Receive USD/pay COP	2,330		2		Accounts receivable, net



Liabilities:
Foreign currency exchange contracts:
Receive USD/pay GBP	$	7,718	$	(57)	Accrued liabilities
Receive USD/pay EUR	29,621		(325)		Accrued liabilities
Receive USD/pay AUD	15,135		(74)		Accrued liabilities
Receive USD/pay ZAR	20,405		(296)		Accrued liabilities
Receive USD/pay MXN	25,864		(4)		Accrued liabilities
Receive USD/pay BRL	3,138		(3)		Accrued liabilities
Receive USD/pay NZD	2,076		(5)		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
		Year ended
Derivatives not designated as hedging instruments under FASB ASC 815-20	Location of gain (loss) recognized in income on derivatives	December 31, 2017		December 31, 2016		December 31, 2015


Foreign currency exchange contracts	Other income (expense), net	$	(13,733)	$	1,819	$	2,503

INVENTORIES (Tables)

12 Months Ended

Dec. 31, 2017

INVENTORIES

Schedule of inventories

	2017		2016
Raw materials	$	78,834	$	58,658
Finished goods	176,911		103,313

	$	255,745	$	161,971

PROPERTY AND EQUIPMENT, Net (Tables)

12 Months Ended

Dec. 31, 2017

PROPERTY AND EQUIPMENT, Net

Schedule of property and equipment

	2017			2016
Land	$	47,373		$	46,596
Leasehold improvements	3,109			2,687
Furniture and fixtures	6,461			3,635
Office and computer equipment	14,506			11,701
Computer software	3,650			3,274
Equipment	148,434			114,230
Building	107,374			69,547
Vehicles	38,179			31,582

	369,086			283,252
Less: accumulated depreciation and amortization	(138,810		)	(109,909		)

	$	230,276		$	173,343

GOODWILL AND OTHER INTANGIBLE ASSETS (Tables)

12 Months Ended

Dec. 31, 2017

GOODWILL AND OTHER INTANGIBLE ASSETS

Schedule of Goodwill

	Monster Energy® Drinks		Strategic Brands		Other		Total
Balance at December 31, 2016	$	693,644	$	637,999	$	-	$	1,331,643
Acquisitions	-		-		-		-

Balance at December 31, 2017	$	693,644	$	637,999	$	-	$	1,331,643

	Monster Energy® Drinks		Strategic Brands		Other		Total
Balance at December 31, 2015	$	641,716	$	637,999	$	-	$	1,279,715
Acquisitions	51,928		-		-		51,928

Balance at December 31, 2016	$	693,644	$	637,999	$	-	$	1,331,643

Schedule of intangibles

	December 31, 2017			December 31, 2016
Amortizing intangibles	$	71,400		$	71,290
Accumulated amortization	(26,383		)	(14,535		)

	45,017			56,755
Non-amortizing intangibles	989,068			975,880

	$	1,034,085		$	1,032,635

Schedule of Intangible assets future amortization expense

The following is the future estimated amortization expense related to amortizing intangibles as of December 31, 2017:

Year Ending December 31:

2018	$	11,847
2019	11,847
2020	7,964
2021	4,722
2022	4,697
2023 and thereafter	3,940

	$	45,017

COMMITMENTS AND CONTINGENCIES (Tables)

12 Months Ended

Dec. 31, 2017

COMMITMENTS AND CONTINGENCIES

Schedule of future minimum rental payments under the operating leases

Future minimum rental payments at December 31, 2017 under the operating leases referred to above are as follows:

Year Ending December 31:

2018	$	2,588
2019	1,802
2020	1,764
2021	1,745
2022	1,469
2023 and thereafter	7,347

	$	16,715

Schedule of contractual obligations related primarily to sponsorships and other commitments

The Company has the following contractual obligations related primarily to sponsorships and other commitments as of December 31, 2017:

Year Ending December 31:

2018	$	96,774
2019	29,427
2020	23,996
2021	5,666
2022	8
2023 and thereafter	-

	$	155,871

ACCUMULATED OTHER COMPREHENSIVE LOSS (Tables)

12 Months Ended

Dec. 31, 2017

ACCUMULATED OTHER COMPREHENSIVE LOSS

Changes in accumulated other comprehensive loss by component, after tax

	2017		2016
Accumulated net unrealized loss on available-for-sale securities	$	841	$	193
Foreign currency translation adjustments, net of tax	15,818		23,056

Total accumulated other comprehensive loss	$	16,659	$	23,249

STOCK-BASED COMPENSATION (Tables)

12 Months Ended

Dec. 31, 2017

STOCK-BASED COMPENSATION

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

	2017	2016	2015
Dividend yield	0.0 %	0.0 %	0.0 %
Expected volatility	36.5 %	36.2 %	37.1 %
Risk-free interest rate	2.11 %	1.57 %	1.57 %
Expected term	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, 2017	22,643	$	23.55	5.8	$	474,739
Granted 01/01/17 - 03/31/17	1,319	$	45.94
Granted 04/01/17 - 06/30/17	26	$	49.71
Granted 07/01/17 - 09/30/17	12	$	56.08
Granted 10/01/17 - 12/31/17	77	$	61.71
Exercised	(5,754)	$	9.15
Cancelled or forfeited	(504)	$	40.09
Outstanding at December 31, 2017	17,819	$	29.62	6.1	$	600,032
Vested and expected to vest in the
future at December 31, 2017	16,863	$	28.81	6.0	$	581,425
Exercisable at December 31, 2017	9,282	$	18.68	4.4	$	414,052

Summary of information about stock options outstanding and exercisable

The following table summarizes information about stock options outstanding and exercisable at December 31, 2017:

			Options Outstanding				Options Exercisable
Range of Exercise Prices ($)			Number Outstanding (In Thousands)	Weighted Average Remaining Contractual Term (Years)	Weighted Average Exercise Price ($)		Number Exercisable (In Thousands)	Weighted Average Exercise Price ($)
$ 4.51	-	$5.61	204	0.7	$	5.25	204	$	5.25
$ 5.94	-	$5.94	3,159	1.9	$	5.94	3,159	$	5.94
$ 6.02	-	$17.99	2,776	4.8	$	15.27	2,289	$	15.14
$ 18.64	-	$23.35	2,441	6.0	$	22.67	1,889	$	22.63
$ 23.68	-	$23.68	12	6.3	$	23.68	-	$	-
$ 36.05	-	$43.64	2,219	8.2	$	41.59	397	$	39.85
$ 43.99	-	$43.99	2,567	8.2	$	43.99	418	$	43.99
$ 44.73	-	$45.01	634	8.1	$	44.94	110	$	44.94
$ 45.16	-	$45.16	2,158	7.2	$	45.16	779	$	45.16
$ 45.55	-	$62.92	1,649	8.7	$	47.74	37	$	48.99

			17,819	6.1	$	29.62	9,282	$	18.68

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

	Number of Shares (in thousands)	Weighted Average Grant-Date Fair Value
Non-vested at January 1, 2017	556	$	39.95
Granted 01/01/17- 03/31/17	252	$	46.27
Granted 04/01/17- 06/30/17	23	$	50.86
Granted 07/01/17- 09/30/17	-		-
Granted 10/01/17- 12/31/17	2	$	59.43
Vested	(300)	$	37.26
Forfeited/cancelled	(3)	$	27.02

Non-vested at December 31, 2017	530	$	45.09

Schedule of employee and non-employee share-based compensation expense

	2017		2016		2015
Operating expenses	$	52,282	$	45,848	$	32,719

Total employee and non-employee share-based compensation expense included in income, before income tax	52,282		45,848		32,719
Less: Amount of income tax benefit recognized in earnings	(100,635)		(34,909)		(9,058)

Amount charged against net income	$	(48,353)	$	10,939	$	23,661

INCOME TAXES (Tables)

12 Months Ended

Dec. 31, 2017

INCOME TAXES

Schedule of domestic and foreign components of the Company's income before provision for income taxes

	Year Ended December 31,
	2017		2016		2015
Domestic*	$	1,062,713	$	1,029,763	$	859,039
Foreign*	138,910		49,922		32,509

Income before provision for income taxes	$	1,201,623	$	1,079,685	$	891,548

Components of the provision for income taxes

	Year Ended December 31,
	2017		2016		2015
Current:
Federal	$	243,127	$	212,283	$	548,018
State	43,252		35,756		88,671
Foreign	27,522		17,171		10,634

	313,901		265,210		647,323

Deferred:
Federal	61,797		87,360		(255,422)
State	3,062		15,254		(40,446)
Foreign	(4,579)		(9,709)		(5,420)

	60,280		92,905		(301,288)

Valuation allowance	6,764		8,885		(1,220)

	$	380,945	$	367,000	$	344,815

Schedule of reconciliation of income taxes computed at statutory federal rate to total income taxes

	Year Ended December 31,
	2017		2016		2015
U.S. Federal tax expense at statutory rates	$	420,568	$	377,599	$	312,042
State income taxes, net of federal tax benefit	27,569		33,148		31,046
Permanent differences	10,356		954		5,285
Stock based compensation	(79,687)		(13,654)		3,203
Domestic production deduction	(22,229)		(21,447)		-
Deferred tax asset reduction (Tax Reform Act)	39,763		-		-
Other	3,736		(8,765)		(127)
Foreign rate differential	(25,895)		(9,720)		(5,414)
Valuation allowance	6,764		8,885		(1,220)

	$	380,945	$	367,000	$	344,815

Components of the Company's deferred tax assets (liabilities)

	2017		2016
Deferred Tax Assets:
Reserve for sales returns	$	159	$	149
Reserve for inventory obsolescence	522		524
Reserve for marketing development fund	6,360		8,065
Capitalization of inventory costs	1,598		2,714
State franchise tax - current	2,050		18,016
Accrued compensation	1,473		1,212
Accrued other liabilities	3,917		1,817
Deferred revenue	93,321		145,319
Stock-based compensation	21,119		31,873
Foreign net operating loss carryforward	28,965		29,894
Prepaid supplies	7,273		8,022
Termination payments	70,637		98,244
Elimination Company Profit	-		2,843
Gain on intercompany transfer	6,793		7,274
Other deferred tax assets	3,449		376

Total gross deferred tax assets	$	247,636	$	356,342


Deferred Tax Liabilities:
Amortization of trademarks	$	(21,657)	$	(18,663)
Intangibles	(84,867)		(131,264)
State franchise tax - deferred	(7,617)		(12,946)
Other deferred tax liabilities	(62)		(1,101)
Depreciation	(8,260)		(6,736)

Total gross deferred tax liabilities	(122,463)		(170,710)


Valuation Allowance	(32,840)		(26,076)


Net deferred tax assets	$	92,333	$	159,556

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

	Gross Unrealized Tax Benefits
Balance at January 1, 2015	$	935
Additions for tax positions related to the current year	-
Additions for tax positions related to the prior year	-
Decreases for tax positions related to prior years	(464)

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 for tax positions related to prior years	(462)

Balance at December 31, 2016	$	9

Additions for tax positions related to the current year	-
Additions for tax positions related to the prior year	6,540
Decreases for tax positions related to prior years	(9)

Balance at December 31, 2017	$	6,540

EARNINGS PER SHARE (Tables)

12 Months Ended

Dec. 31, 2017

EARNINGS PER SHARE

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

	2017	2016	2015
Weighted-average shares outstanding:
Basic	566,782	587,874	566,448
Dilutive securities	10,359	11,945	11,310

Diluted	577,141	599,819	577,758

SEGMENT INFORMATION (Tables)

12 Months Ended

Dec. 31, 2017

SEGMENT INFORMATION

Schedule of net revenues and other financial information by segment


	2017		2016		2015
Net sales:
Monster Energy® Drinks(1)	$	3,047,596	$	2,759,862	$	2,518,505
Strategic Brands	299,844		272,520		143,282
Other	21,605		17,011		60,777
Corporate and unallocated	-		-		-

	$	3,369,045	$	3,049,393	$	2,722,564



	2017		2016		2015

Operating Income:
Monster Energy® Drinks(1) (2)	$	1,264,579	$	1,148,427	$	836,053
Strategic Brands	174,458		163,121		89,841
Other(3)	5,583		2,295		165,233
Corporate and unallocated	(245,833)		(228,505)		(197,474)

	$	1,198,787	$	1,085,338	$	893,653



	2017		2016		2015

Income before tax:
Monster Energy® Drinks(1) (2)	$	1,264,555	$	1,148,640	$	836,429
Strategic Brands	174,442		163,084		89,825
Other(3)	5,583		2,295		165,233
Corporate and unallocated	(242,957)		(234,334)		(199,939)

	$	1,201,623	$	1,079,685	$	891,548

(1)

Includes $43.4 million, $40.3 million and $62.8 million for the years ended December 31, 2017, 2016 and 2015, respectively, related to the recognition of deferred revenue.

(2)

Includes $35.4 million, $79.8 million and $224.0 million for the years ended December 31, 2017, 2016 and 2015, respectively, related to distributor termination costs.

(3)

Includes $161.5 million gain on the sale of Monster Non-Energy for the year ended December 31, 2015.


	2017		2016		2015
Depreciation and amortization:
Monster Energy® Drinks	$	29,591	$	24,048	$	21,464
Stategic Brands	7,443		7,113		3,868
Other	4,608		3,457		231
Corporate and unallocated	7,245		6,227		5,297

	$	48,887	$	40,845	$	30,860

Schedule of goodwill and other intangible assets for the Company's reportable segments

	2017			2016
Goodwill and other intangible assets:
Monster Energy® Drinks	$		1,346,648	$	1,334,494
Strategic Brands	995,582			1,001,749
Other	23,498			28,035
Corporate and unallocated	-			-

	$	2,365,728		$	2,364,278

RELATED PARTY TRANSACTIONS (Tables)

12 Months Ended

Dec. 31, 2017

RELATED PARTY TRANSACTIONS

Schedule of related party transactions

	December 31, 2017		December 31, 2016

Accounts receivable, net	$	32,607	$	151,756
TCCC Transaction receivable	$	-	$	125,000
Accounts payable	$	(45,465)	$	(41,210)
Accrued promotional allowances	$	(5,884)	$	(27,056)

QUARTERLY FINANCIAL DATA (Unaudited) (Tables)

12 Months Ended

Dec. 31, 2017

QUARTERLY FINANCIAL DATA (Unaudited)

QUARTERLY FINANCIAL DATA (Unaudited)

							Net Income per Common Share
	Net Sales		Gross Profit		Net Income		Basic		Diluted
Quarter ended:
March 31, 2017	$	742,146	$	480,874	$	177,980	$	0.31	$	0.31
June 30, 2017	907,068		583,497		222,633		$	0.39	$	0.39
September 30, 2017	909,476		569,709		218,744		$	0.39	$	0.38
December 31, 2017	810,355		503,610		201,321		$	0.36	$	0.35

	$	3,369,045	$	2,137,690	$	820,678


Quarter ended:
March 31, 2016	$	680,186	$	423,098	$	163,877	$	0.27	$	0.26
June 30, 2016	827,488		517,814		184,219		$	0.31	$	0.30
September 30, 2016	787,954		502,975		191,643		$	0.34	$	0.33
December 31, 2016	753,765		498,113		172,946		$	0.30	$	0.30

	$	3,049,393	$	1,942,000	$	712,685

ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Property and Equipment (Details) - Property and Equipment	12 Months Ended
	Dec. 31, 2017
Minimum
Property and equipment, net
Estimated useful lives (in years)	3 years
Maximum
Property and equipment, net
Estimated useful lives (in years)	10 years

ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Goodwill (Details) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2015
Accounting Policies
Impairment of Goodwill	$ 0.0	$ 0.0	$ 0.0

ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Other Intangibles (Details) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2015
Accounting Policies
Impairment of intangible assets	$ 0.0	$ 0.0	$ 0.0

ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Foreign Currency Translation and Transactions (Details) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2015
Accounting Policies
Foreign currency transaction losses	$ (3.3)	$ (9.7)	$ (5.5)

ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Revenue Recognition (Details)	12 Months Ended
	Dec. 31, 2017
Accounting Policies
Distribution agreement, revenue recognition period	20 years

ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Freight-Out Costs (Details) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2015
Accounting Policies
Freight-out costs	$ 91.9	$ 83.6	$ 87.0

ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Advertising and Promotional Expenses (Details) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2015
Accounting Policies
Marketing and Advertising Expense	$ 324.0	$ 270.6	$ 209.7

ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Concentration of Risk (Details) - Customer concentration - Net Sales	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2015
TCCC
Concentration of risk
Percentage of net sales from major customer	18.00%	41.00%	43.00%
CCBCC Operations, LLC
Concentration of risk
Percentage of net sales from major customer	13.00%	9.00%	6.00%

ACQUISITIONS AND DIVESTITURES - American Fruit & Flavors (Details) - USD ($) $ in Thousands		12 Months Ended
	Apr. 01, 2016	Dec. 31, 2016
Business Acquisition
Cash		$ 688,485
American Fruits & Flavors ("AFF")
Business Acquisition
Cash	$ 688,500

ACQUISITIONS AND DIVESTITURES - The Coca-Cola Company (Details) - TCCC $ in Millions		12 Months Ended
	Jun. 12, 2015 USD ($) individual shares	Dec. 31, 2017 USD ($)	Dec. 31, 2016 shares	Dec. 31, 2015 USD ($)
Noncash or Part Noncash Acquisitions
Number of shares issued for acquisition \| shares	102,121,602		35,400,000
Ownership interest (as a percent)	16.70%
Number of seats granted on Board of Directors \| individual	2
Cash consideration received	$ 2,150.0
Amount held in escrow	125.0			$ 125.0
Escrow Release		$ 125.0
Target case sales transitioned (in percent)		95.00%	89.00%
40% Target
Noncash or Part Noncash Acquisitions
Escrow Release	$ 375.0
Target case sales transitioned (in percent)	40.00%
50% Target
Noncash or Part Noncash Acquisitions
Escrow Release	$ 312.5
Target case sales transitioned (in percent)	50.00%
60% Target
Noncash or Part Noncash Acquisitions
Escrow Release	$ 250.0
Target case sales transitioned (in percent)	60.00%
70% Target
Noncash or Part Noncash Acquisitions
Escrow Release	$ 187.5
Target case sales transitioned (in percent)	70.00%
80% Target
Noncash or Part Noncash Acquisitions
Escrow Release	$ 125.0
Target case sales transitioned (in percent)	80.00%
90% Target
Noncash or Part Noncash Acquisitions
Escrow Release	$ 62.5
Target case sales transitioned (in percent)	90.00%
95% Target
Noncash or Part Noncash Acquisitions
Target case sales transitioned (in percent)	95.00%

ACQUISITIONS AND DIVESTITURES - Proforma Financial Information (Details) - USD ($) $ in Thousands	3 Months Ended								7 Months Ended	12 Months Ended
	Dec. 31, 2017	Sep. 30, 2017	Jun. 30, 2017	Mar. 31, 2017	Dec. 31, 2016	Sep. 30, 2016	Jun. 30, 2016	Mar. 31, 2016	Dec. 31, 2015	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2015
Noncash or Part Noncash Acquisitions
Net Sales	$ 810,355	$ 909,476	$ 907,068	$ 742,146	$ 753,765	$ 787,954	$ 827,488	$ 680,186		$ 3,369,045	$ 3,049,393	$ 2,722,564
Net income	$ 201,321	$ 218,744	$ 222,633	$ 177,980	$ 172,946	$ 191,643	$ 184,219	$ 163,877		820,678	712,685	546,733
Gain on sale of Monster Non-Energy												161,470
Pro forma financial information
To record amortization of definite lived KO Energy intangibles										$ 11,900	$ 10,600	3,900
Federal Tax Rates										38.50%
TCCC \| Pro Forma
Pro forma financial information
Net sales												2,808,800
Net income												515,300
TCCC \| KO Energy
Noncash or Part Noncash Acquisitions
Net Sales									$ 143,300			138,127
Net income									55,200			100,575
TCCC \| Disposal of Monster Non-Energy
Noncash or Part Noncash Acquisitions
Net Sales												(60,778)
Net income												(101,618)
Gain on sale of Monster Non-Energy									$ 161,500
TCCC \| Other
Noncash or Part Noncash Acquisitions
Net Sales												8,887
Net income												(30,390)
Pro forma financial information
Amortization of deferred revenue												8,887
To record sales commissions												(15,470)
To record amortization of definite lived KO Energy intangibles												(3,126)
To eliminate TCCC Transaction expenses												15,495
Estimated provision for income taxes on pro forma adjustments												2,545
Estimated provision for income taxes on KO Energy income												(38,721)
Total												$ (30,390)

INVESTMENTS (Details) - USD ($) $ in Thousands	Dec. 31, 2017	Dec. 31, 2016
Available-for-sale
Amortized Cost	$ 676,129	$ 223,144
Gross Unrealized Holding Gains	1
Gross Unrealized Holding Losses	831	196
Fair Value	675,299	222,948
Continuous Unrealized Loss Position less than 12 Months	831	196
Short-term \| Commercial paper
Available-for-sale
Amortized Cost	81,026	40,382
Fair Value	81,026	40,382
Short-term \| Certificates of deposit
Available-for-sale
Amortized Cost	11,869
Fair Value	11,869
Short-term \| Municipal securities
Available-for-sale
Amortized Cost	469,604	140,379
Gross Unrealized Holding Gains	1
Gross Unrealized Holding Losses	740	181
Fair Value	468,865	140,198
Continuous Unrealized Loss Position less than 12 Months	740	181
Short-term \| U.S. government agency securities
Available-for-sale
Amortized Cost	61,307	26,057
Gross Unrealized Holding Losses	88	6
Fair Value	61,219	26,051
Continuous Unrealized Loss Position less than 12 Months	88	6
Short-term \| Variable rate demand notes
Available-for-sale
Amortized Cost	49,954	13,923
Fair Value	49,954	13,923
Long-term \| Municipal securities
Available-for-sale
Amortized Cost		2,403
Gross Unrealized Holding Losses		9
Fair Value		2,394
Continuous Unrealized Loss Position less than 12 Months		$ 9
Long-term \| U.S. government agency securities
Available-for-sale
Amortized Cost	2,369
Gross Unrealized Holding Losses	3
Fair Value	2,366
Continuous Unrealized Loss Position less than 12 Months	$ 3

INVESTMENTS - Maturity Period (Details) - USD ($) $ in Thousands	Dec. 31, 2017	Dec. 31, 2016
Investments
Amortized Cost	$ 676,129	$ 223,144
Fair Value	675,299	222,948
Commercial paper \| Less than 1 year
Investments
Amortized Cost	81,026	40,382
Fair Value	81,026	40,382
Municipal securities \| Less than 1 year
Investments
Amortized Cost	469,604	140,379
Fair Value	468,865	140,198
Municipal securities \| Due 1 - 10 years
Investments
Amortized Cost		2,403
Fair Value		2,394
U.S. government agency securities \| Less than 1 year
Investments
Amortized Cost	61,307	26,057
Fair Value	61,219	26,051
U.S. government agency securities \| Due 1 - 10 years
Investments
Amortized Cost	2,369
Fair Value	2,366
Certificates of deposit \| Less than 1 year
Investments
Amortized Cost	11,869
Fair Value	11,869
Variable rate demand notes \| Due 1 - 10 years
Investments
Amortized Cost	6,366	3,917
Fair Value	6,366	3,917
Variable rate demand notes \| Due 11 - 20 years
Investments
Amortized Cost	28,377	6,003
Fair Value	28,377	6,003
Variable rate demand notes \| Due 21 - 30 years
Investments
Amortized Cost	15,211	4,003
Fair Value	$ 15,211	$ 4,003

INVESTMENTS - Trading Securities (Details) - Auction rate securities $ in Thousands	12 Months Ended
	Dec. 31, 2015 USD ($)
Investments
Gain on trading securities sold	$ 250
Gain on trading securities	$ 250

FAIR VALUE OF CERTAIN FINANCIAL ASSETS AND LIABILITIES - Assets - Recurring Basis (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2014
Fair value of certain assets
Cash and cash equivalents	$ 528,622	$ 377,582	$ 2,175,417	$ 370,323
Short-term investments	672,933	220,554
Investments	2,366	2,394
Asset transfers between Level 1 and Level 2 measurements	0	0
Total fair value
Fair value of certain assets
Cash and cash equivalents	528,622	377,582
Short-term investments	672,933	220,554
Accounts receivable, net	95	236
Investments	2,366	2,394
Accrued liabilities	(1,579)	(764)
Assets measured at fair value	1,202,437	600,002
Cash	310,885	278,972
Foreign currency derivatives	(1,484)	(528)
Money market funds \| Total fair value
Fair value of certain assets
Assets measured at fair value	112,848	76,112
Certificates of deposit \| Total fair value
Fair value of certain assets
Assets measured at fair value	15,720
Commercial paper \| Total fair value
Fair value of certain assets
Assets measured at fair value	99,903	47,855
Variable rate demand notes \| Total fair value
Fair value of certain assets
Assets measured at fair value	49,954	13,923
Municipal securities \| Total fair value
Fair value of certain assets
Assets measured at fair value	529,984	157,617
U.S. government agency securities \| Total fair value
Fair value of certain assets
Assets measured at fair value	81,230	26,051
U.S. Treasuries \| Total fair value
Fair value of certain assets
Assets measured at fair value	3,397
Level 1
Fair value of certain assets
Cash and cash equivalents	423,733	355,084
Assets measured at fair value	423,733	355,084
Cash	310,885	278,972
Level 1 \| Money market funds
Fair value of certain assets
Assets measured at fair value	112,848	76,112
Level 2
Fair value of certain assets
Cash and cash equivalents	104,889	22,498
Short-term investments	672,933	220,554
Accounts receivable, net	95	236
Investments	2,366	2,394
Accrued liabilities	(1,579)	(764)
Assets measured at fair value	778,704	244,918
Foreign currency derivatives	(1,484)	(528)
Level 2 \| Certificates of deposit
Fair value of certain assets
Assets measured at fair value	15,720
Level 2 \| Commercial paper
Fair value of certain assets
Assets measured at fair value	99,903	47,855
Level 2 \| Variable rate demand notes
Fair value of certain assets
Assets measured at fair value	49,954	13,923
Level 2 \| Municipal securities
Fair value of certain assets
Assets measured at fair value	529,984	157,617
Level 2 \| U.S. government agency securities
Fair value of certain assets
Assets measured at fair value	81,230	$ 26,051
Level 2 \| U.S. Treasuries
Fair value of certain assets
Assets measured at fair value	$ 3,397

DERIVATIVE INSTRUMENTS AND HEDGING ACTIVITIES - Notional Amount and Fair Value (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2016
Foreign currency exchange contracts \| Maximum
Derivative Instruments and Hedging Activities
Term of derivative instrument	1 month
Not designated as hedging instruments \| Receive CAD/pay USD \| Accounts receivable, net
Derivative Instruments and Hedging Activities
Notional amount, Assets	$ 4,892	$ 22,314
Fair Value, Assets	61	173
Not designated as hedging instruments \| Receive SGD/pay USD \| Accounts receivable, net
Derivative Instruments and Hedging Activities
Notional amount, Assets	223	7,915
Fair Value, Assets	2	24
Not designated as hedging instruments \| Receive NOK/pay USD \| Accounts receivable, net
Derivative Instruments and Hedging Activities
Notional amount, Assets	1,534	2,138
Fair Value, Assets	18	28
Not designated as hedging instruments \| Receive USD/pay BRL \| Accounts receivable, net
Derivative Instruments and Hedging Activities
Notional amount, Assets	1,806
Fair Value, Assets	1
Not designated as hedging instruments \| Receive USD/pay BRL \| Accrued liabilities
Derivative Instruments and Hedging Activities
Notional amount, Liabilities		3,138
Fair Value, Liabilities		(3)
Not designated as hedging instruments \| Receive USD/pay CLP \| Accounts receivable, net
Derivative Instruments and Hedging Activities
Notional amount, Assets		4,094
Fair Value, Assets		9
Not designated as hedging instruments \| Receive USD/pay CLP \| Accrued liabilities
Derivative Instruments and Hedging Activities
Notional amount, Liabilities	1,112
Fair Value, Liabilities	(8)
Not designated as hedging instruments \| Receive USD/pay COP \| Accounts receivable, net
Derivative Instruments and Hedging Activities
Notional amount, Assets	2,803	2,330
Fair Value, Assets	13	2
Not designated as hedging instruments \| Receive USD/pay GBP \| Accrued liabilities
Derivative Instruments and Hedging Activities
Notional amount, Liabilities	31,342	7,718
Fair Value, Liabilities	(334)	(57)
Not designated as hedging instruments \| Receive USD/pay EUR \| Accrued liabilities
Derivative Instruments and Hedging Activities
Notional amount, Liabilities	65,131	29,621
Fair Value, Liabilities	(642)	(325)
Not designated as hedging instruments \| Receive USD/pay AUD \| Accrued liabilities
Derivative Instruments and Hedging Activities
Notional amount, Liabilities	17,238	15,135
Fair Value, Liabilities	(177)	(74)
Not designated as hedging instruments \| Receive USD/pay ZAR \| Accrued liabilities
Derivative Instruments and Hedging Activities
Notional amount, Liabilities	21,311	20,405
Fair Value, Liabilities	(222)	(296)
Not designated as hedging instruments \| Receive USD/pay MXN \| Accrued liabilities
Derivative Instruments and Hedging Activities
Notional amount, Liabilities	7,720	25,864
Fair Value, Liabilities	(126)	(4)
Not designated as hedging instruments \| Receive USD/pay NZD \| Accrued liabilities
Derivative Instruments and Hedging Activities
Notional amount, Liabilities	1,826	2,076
Fair Value, Liabilities	(18)	$ (5)
Not designated as hedging instruments \| Receive USD/pay TRY \| Accrued liabilities
Derivative Instruments and Hedging Activities
Notional amount, Liabilities	5,483
Fair Value, Liabilities	$ (52)

DERIVATIVE INSTRUMENTS AND HEDGING ACTIVITIES - Nonhedging Designation (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2015
Not designated as hedging instruments \| Foreign currency exchange contracts \| Other Income (Expense), Net
Net (losses) gains on derivative instruments
Amount of gain (loss) recognized in income on derivatives	$ (13,733)	$ 1,819	$ 2,503

INVENTORIES (Details) - USD ($) $ in Thousands	Dec. 31, 2017	Dec. 31, 2016
INVENTORIES
Raw materials	$ 78,834	$ 58,658
Finished goods	176,911	103,313
Inventories, net	$ 255,745	$ 161,971

PROPERTY AND EQUIPMENT, Net (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2015
Property and equipment, net
Property and equipment, gross	$ 369,086	$ 283,252
Less: accumulated depreciation and amortization	(138,810)	(109,909)
Property and equipment, net	230,276	173,343
Total depreciation and amortization expense	37,000	30,200	$ 27,000
Land
Property and equipment, net
Property and equipment, gross	47,373	46,596
Leasehold improvements
Property and equipment, net
Property and equipment, gross	3,109	2,687
Furniture and fixtures
Property and equipment, net
Property and equipment, gross	6,461	3,635
Office and computer equipment
Property and equipment, net
Property and equipment, gross	14,506	11,701
Computer software
Property and equipment, net
Property and equipment, gross	3,650	3,274
Equipment
Property and equipment, net
Property and equipment, gross	148,434	114,230
Building
Property and equipment, net
Property and equipment, gross	107,374	69,547
Vehicles
Property and equipment, net
Property and equipment, gross	$ 38,179	$ 31,582

GOODWILL AND OTHER INTANGIBLE ASSETS (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2016
Goodwill
Goodwill, Beginning Balance	$ 1,331,643	$ 1,279,715
Acquisitions	0	51,928
Goodwill, Ending Balance	1,331,643	1,331,643
Monster Energy Drinks
Goodwill
Goodwill, Beginning Balance	693,644	641,716
Acquisitions	0	51,928
Goodwill, Ending Balance	693,644	693,644
Strategic Brands
Goodwill
Goodwill, Beginning Balance	637,999	637,999
Acquisitions	0
Goodwill, Ending Balance	637,999	$ 637,999
Other
Goodwill
Acquisitions	$ 0

GOODWILL AND OTHER INTANGIBLE ASSETS - Intangibles (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2015
Intangibles, Net
Amortizing intangibles	$ 71,400	$ 71,290
Accumulated amortization	(26,383)	(14,535)
Amortizing intangibles, net	45,017	56,755
Non-amortizing intangibles	989,068	975,880
Intangible, net	1,034,085	1,032,635
Amortization of in intangible assets	$ 11,900	$ 10,600	$ 3,900
Minimum
Intangibles, Net
Useful life of intangible assets	5 years
Maximum
Intangibles, Net
Useful life of intangible assets	7 years

GOODWILL AND OTHER INTANGIBLE ASSETS - Amortization expense (Details) - USD ($) $ in Thousands	Dec. 31, 2017	Dec. 31, 2016
Finite-Lived Intangible Assets, Net, Amortization Expense, Fiscal Year Maturity [Abstract]
2018	$ 11,847
2019	11,847
2020	7,964
2021	4,722
2022	4,697
2023 and thereafter	3,940
Amortizing intangibles, net	$ 45,017	$ 56,755

DISTRIBUTION AGREEMENTS (Details) - USD ($) $ in Millions	12 Months Ended
DISTRIBUTION AGREEMENTS (Details) - USD ($) $ in Millions	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2015
DISTRIBUTION AGREEMENTS
Termination costs	$ 35.4	$ 79.8	$ 224.0
Distribution agreement (in years)	20 years
Revenue recognized	$ 22.3	26.1	50.5
Amortization of deferred revenue.	$ 0.6	$ 5.7	$ 39.8

DEBT (Details) $ in Thousands	1 Months Ended	12 Months Ended
DEBT (Details) $ in Thousands	Jun. 30, 2017 USD ($)	Dec. 31, 2017 USD ($)	Dec. 31, 2016 USD ($)	Dec. 31, 2015 USD ($)	Feb. 01, 2017 USD ($)
Capital lease obligations
DEBT
Company debt consisting of capital leases		$ 1,300	$ 1,100
Assets acquired under capital leases
Interest expenses for capital lease obligations		80	70	$ 30
Capital lease obligations \| Assets acquired under capital leases
Assets acquired under capital leases
Net book value		5,300	4,500
Accumulated depreciation		4,200	4,500
Comerica \| Line of credit
DEBT
Maximum borrowing capacity	$ 10,000
Outstanding borrowings		0
Comerica \| Line of credit \| Base (prime) rate \| Minimum
DEBT
Percentage to be subtracted to compute the variable rate on the debt instrument	1.00%
Comerica \| Line of credit \| Base (prime) rate \| Maximum
DEBT
Percentage to be subtracted to compute the variable rate on the debt instrument	1.50%
Comerica \| Line of credit \| London Interbank Offered Rates \| Minimum
DEBT
Percentage that needs to be added to compute the variable rate on the debt instrument	1.25%
Comerica \| Line of credit \| London Interbank Offered Rates \| Maximum
DEBT
Percentage that needs to be added to compute the variable rate on the debt instrument	1.75%
Comerica \| Standby letters of credit
DEBT
Maximum borrowing capacity	$ 4,000
Amount outstanding		0
Comerica \| Standby letters of credit \| Minimum
DEBT
Fee (as a percent)	1.00%
Comerica \| Standby letters of credit \| Maximum
DEBT
Fee (as a percent)	1.50%
HSBC China \| Line of credit
DEBT
Maximum borrowing capacity			$ 4,000		$ 9,000
Amount outstanding		$ 6,000
HSBC China \| Line of credit \| People's Bank of China
DEBT
Multiplier for calculating effective rate from benchmark rate		1.10

COMMITMENTS AND CONTINGENCIES - Rent Expense (Details) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2015
COMMITMENTS AND CONTINGENCIES
Rental expense under operating leases	$ 10.7	$ 9.9	$ 10.7

COMMITMENTS AND CONTINGENCIES - Future Payments (Details) $ in Thousands	Dec. 31, 2017 USD ($)
COMMITMENTS AND CONTINGENCIES
2018	$ 2,588
2019	1,802
2020	1,764
2021	1,745
2022	1,469
2023 and thereafter	7,347
Total	$ 16,715

COMMITMENTS AND CONTINGENCIES - Contractual obligations (Details) $ in Thousands	Dec. 31, 2017 USD ($)
COMMITMENTS AND CONTINGENCIES
2018	$ 96,774
2019	29,427
2020	23,996
2021	5,666
2022	8
Total	$ 155,871

COMMITMENTS AND CONTINGENCIES - Purchase Commitments (Details) $ in Millions	1 Months Ended	12 Months Ended
	Sep. 30, 2016 USD ($) a	Dec. 31, 2017 USD ($) ft²	Dec. 31, 2016 USD ($)	Dec. 31, 2015 USD ($)
Purchase Commitments
Aggregate value of raw material purchases		$ 273.6	$ 205.9	$ 332.0
Area of real estate property \| ft²		1,000,000
Guaranteed Maximum Purchase Price	$ 38.1
Guaranteed maximum construction price, remaining amount		$ 4.6
Raw materials
Purchase Commitments
Purchase Commitments		$ 37.8
Obligation term ( in years)		1 year
Land
Purchase Commitments
Acres of land \| a	49
Purchase price	$ 39.1

COMMITMENTS AND CONTINGENCIES - State Attorney General Inquiry (Details) $ in Millions	Dec. 31, 2017 USD ($)
COMMITMENTS AND CONTINGENCIES
Accrued loss contingencies	$ 1.9

ACCUMULATED OTHER COMPREHENSIVE LOSS (Details) - USD ($) $ in Thousands	Dec. 31, 2017	Dec. 31, 2016
Components of accumulated other comprehensive loss:
Accumulated net unrealized loss on available-for-sale securities	$ 841	$ 193
Foreign currency translation adjustments, net of tax	15,818	23,056
Total accumulated other comprehensive loss	$ 16,659	$ 23,249

TREASURY STOCK (Details) - USD ($) $ / shares in Units, shares in Millions, $ in Millions	12 Months Ended
	Dec. 31, 2017	Feb. 28, 2017
Equity, Class of Treasury Stock
Number of shares repurchased of common stock from employees in lieu of cash or withholding taxes due	1.8
Cash payment for repurchase of common stock from employees in lieu of cash or withholding taxes due	$ 111.2
February 2017 Repurchase Plan
Equity, Class of Treasury Stock
Stock repurchase program, authorized amount		$ 500.0
Common stock repurchased (in shares)	4.6
Average purchase price (in dollars per share)	$ 54.91
Price of stock less broker commissions	$ 249.9

STOCK-BASED COMPENSATION - Plans (Details) $ in Millions	3 Months Ended				12 Months Ended
STOCK-BASED COMPENSATION - Plans (Details) $ in Millions	Dec. 31, 2017 shares	Sep. 30, 2017 shares	Jun. 30, 2017 shares	Mar. 31, 2017 shares	Dec. 31, 2017 USD ($) plan shares	Dec. 31, 2016 USD ($)	Dec. 31, 2015 USD ($)
Stock-based compensation
Stock-based compensation plans \| plan					2
Compensation expense on share-based plans \| $					$ 52.3	$ 45.8	$ 32.7
Stock options
Stock-based compensation
Common stock granted, net of cancellations (in shares)	77,000	12,000	26,000	1,319,000
Excess tax benefit realized for tax deductions from non-qualified stock option exercises and disqualifying dispositions of incentive stock options \| $					$ 96.7	20.8	314.7
2011 Omnibus Incentive Plan
Stock-based compensation
Aggregate amount of common stock authorized (in shares)	43,500,000				43,500,000
Reduction in number of shares for each share granted	2.16				2.16
Common stock granted, net of cancellations (in shares)					19,978,932
Shares available for grant	19,651,474				19,651,474
2011 Omnibus Incentive Plan \| Stock options
Stock-based compensation
Vesting period					5 years
2011 Omnibus Incentive Plan \| Stock options \| Maximum
Stock-based compensation
Expiration period (in years)					10 years
2017 Directors Plan
Stock-based compensation
Aggregate amount of common stock authorized (in shares)	1,250,000				1,250,000
Common stock granted, net of cancellations (in shares)					23,566
Shares available for grant	1,226,434				1,226,434
Number of common shares held and expected to vest for eligibility under plan	9,000				9,000
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 \| $					$ 96.7	$ 20.8
Adjustments to additional paid-in-capital, benefit associated with share-based compensation \| $							$ 314.7

STOCK-BASED COMPENSATION - Fair Value Assumptions (Details) - Stock options - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands	3 Months Ended				12 Months Ended
	Dec. 31, 2017	Sep. 30, 2017	Jun. 30, 2017	Mar. 31, 2017	Dec. 31, 2017	Dec. 31, 2016	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%
Expected volatility (as a percent)					36.50%	36.20%	37.10%
Risk-free interest rate (as a percent)					2.11%	1.57%	1.57%
Expected term					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)				22,643	22,643
Granted (in shares)	77	12	26	1,319
Exercised (in shares)					(5,754)
Cancelled or forfeited (in shares)					(504)
Balance at the end of the period (in shares)	17,819				17,819	22,643
Vested and expected to vest in the future at the end of the period (in shares)	16,863				16,863
Exercisable at the end of the period (in shares)	9,282				9,282
Stock options, Weighted-Average Exercise Price Per Share
Balance at the beginning of the period (in dollars per share)				$ 23.55	$ 23.55
Granted (in dollars per share)	$ 61.71	$ 56.08	$ 49.71	$ 45.94
Exercised (in dollars per share)					9.15
Cancelled or forfeited (in dollars per share)					40.09
Balance at the end of the period (in dollars per share)	29.62				29.62	$ 23.55
Vested and expected to vest in the future at the end of the period (in dollars per share)	28.81				28.81
Exercisable at the end of the period (in dollars per share)	$ 18.68				$ 18.68
Weighted-Average Remaining Contractual Term
Balance at the beginning of the period					6 years 1 month 6 days	5 years 9 months 18 days
Balance at the end of the period					6 years 1 month 6 days	5 years 9 months 18 days
Vested and expected to vest in the future at the end of the period					6 years
Exercisable at the end of the period					4 years 4 months 24 days
Aggregate Intrinsic Value
Balance at the beginning of the period				$ 474,739	$ 474,739
Balance at the end of the period	$ 600,032				600,032	$ 474,739
Vested and expected to vest in the future at the end of the period	581,425				581,425
Exercisable at the end of the period	$ 414,052				$ 414,052

STOCK-BASED COMPENSATION - Exercise Prices (Details) shares in Thousands	12 Months Ended
	Dec. 31, 2017 $ / shares shares
Stock options outstanding and stock options exercisable
Stock options outstanding (in shares) \| shares	17,819
Options Outstanding, Weighted Average Remaining Contractual Term (in years)	6 years 1 month 6 days
Options Outstanding, Weighted Average Exercise Price (in dollars per share)	$ 29.62
Options Exercisable (in shares) \| shares	9,282
Options Exercisable, Weighted Average Exercise Price (in dollars per share)	$ 18.68
Range of Exercise Prices $4.51 - $5.61
Stock options outstanding and stock options exercisable
Stock options, range of exercise prices, low end of range (in dollars per share)	4.51
Stock options, range of exercise prices, high end of range (in dollars per share)	$ 5.61
Stock options outstanding (in shares) \| shares	204
Options Outstanding, Weighted Average Remaining Contractual Term (in years)	8 months 12 days
Options Outstanding, Weighted Average Exercise Price (in dollars per share)	$ 5.25
Options Exercisable (in shares) \| shares	204
Options Exercisable, Weighted Average Exercise Price (in dollars per share)	$ 5.25
Range of Exercise Prices $5.94 - $5.94
Stock options outstanding and stock options exercisable
Stock options, range of exercise prices, low end of range (in dollars per share)	5.94
Stock options, range of exercise prices, high end of range (in dollars per share)	$ 5.94
Stock options outstanding (in shares) \| shares	3,159
Options Outstanding, Weighted Average Remaining Contractual Term (in years)	1 year 10 months 24 days
Options Outstanding, Weighted Average Exercise Price (in dollars per share)	$ 5.94
Options Exercisable (in shares) \| shares	3,159
Options Exercisable, Weighted Average Exercise Price (in dollars per share)	$ 5.94
Range of Exercise Prices $6.02 - $17.99
Stock options outstanding and stock options exercisable
Stock options, range of exercise prices, low end of range (in dollars per share)	6.02
Stock options, range of exercise prices, high end of range (in dollars per share)	$ 17.99
Stock options outstanding (in shares) \| shares	2,776
Options Outstanding, Weighted Average Remaining Contractual Term (in years)	4 years 9 months 18 days
Options Outstanding, Weighted Average Exercise Price (in dollars per share)	$ 15.27
Options Exercisable (in shares) \| shares	2,289
Options Exercisable, Weighted Average Exercise Price (in dollars per share)	$ 15.14
Range of Exercise Prices $18.64 - $23.35
Stock options outstanding and stock options exercisable
Stock options, range of exercise prices, low end of range (in dollars per share)	18.64
Stock options, range of exercise prices, high end of range (in dollars per share)	$ 23.35
Stock options outstanding (in shares) \| shares	2,441
Options Outstanding, Weighted Average Remaining Contractual Term (in years)	6 years
Options Outstanding, Weighted Average Exercise Price (in dollars per share)	$ 22.67
Options Exercisable (in shares) \| shares	1,889
Options Exercisable, Weighted Average Exercise Price (in dollars per share)	$ 22.63
Range of Exercise Prices $23.68 - $23.68
Stock options outstanding and stock options exercisable
Stock options, range of exercise prices, low end of range (in dollars per share)	23.68
Stock options, range of exercise prices, high end of range (in dollars per share)	$ 23.68
Stock options outstanding (in shares) \| shares	12
Options Outstanding, Weighted Average Remaining Contractual Term (in years)	6 years 3 months 18 days
Options Outstanding, Weighted Average Exercise Price (in dollars per share)	$ 23.68
Range of Exercise Prices $36.05 - $43.64
Stock options outstanding and stock options exercisable
Stock options, range of exercise prices, low end of range (in dollars per share)	36.05
Stock options, range of exercise prices, high end of range (in dollars per share)	$ 43.64
Stock options outstanding (in shares) \| shares	2,219
Options Outstanding, Weighted Average Remaining Contractual Term (in years)	8 years 2 months 12 days
Options Outstanding, Weighted Average Exercise Price (in dollars per share)	$ 41.59
Options Exercisable (in shares) \| shares	397
Options Exercisable, Weighted Average Exercise Price (in dollars per share)	$ 39.85
Range of Exercise Prices $43.99 - $43.99
Stock options outstanding and stock options exercisable
Stock options, range of exercise prices, low end of range (in dollars per share)	43.99
Stock options, range of exercise prices, high end of range (in dollars per share)	$ 43.99
Stock options outstanding (in shares) \| shares	2,567
Options Outstanding, Weighted Average Remaining Contractual Term (in years)	8 years 2 months 12 days
Options Outstanding, Weighted Average Exercise Price (in dollars per share)	$ 43.99
Options Exercisable (in shares) \| shares	418
Options Exercisable, Weighted Average Exercise Price (in dollars per share)	$ 43.99
Range of Exercise Prices $44.73 - $45.01
Stock options outstanding and stock options exercisable
Stock options, range of exercise prices, low end of range (in dollars per share)	44.73
Stock options, range of exercise prices, high end of range (in dollars per share)	$ 45.01
Stock options outstanding (in shares) \| shares	634
Options Outstanding, Weighted Average Remaining Contractual Term (in years)	8 years 1 month 6 days
Options Outstanding, Weighted Average Exercise Price (in dollars per share)	$ 44.94
Options Exercisable (in shares) \| shares	110
Options Exercisable, Weighted Average Exercise Price (in dollars per share)	$ 44.94
Range of Exercise Prices $45.16 - $45.16
Stock options outstanding and stock options exercisable
Stock options, range of exercise prices, low end of range (in dollars per share)	45.16
Stock options, range of exercise prices, high end of range (in dollars per share)	$ 45.16
Stock options outstanding (in shares) \| shares	2,158
Options Outstanding, Weighted Average Remaining Contractual Term (in years)	7 years 2 months 12 days
Options Outstanding, Weighted Average Exercise Price (in dollars per share)	$ 45.16
Options Exercisable (in shares) \| shares	779
Options Exercisable, Weighted Average Exercise Price (in dollars per share)	$ 45.16
Range of Exercise Prices $45.55- $62.92
Stock options outstanding and stock options exercisable
Stock options, range of exercise prices, low end of range (in dollars per share)	45.55
Stock options, range of exercise prices, high end of range (in dollars per share)	$ 62.92
Stock options outstanding (in shares) \| shares	1,649
Options Outstanding, Weighted Average Remaining Contractual Term (in years)	8 years 8 months 12 days
Options Outstanding, Weighted Average Exercise Price (in dollars per share)	$ 47.74
Options Exercisable (in shares) \| shares	37
Options Exercisable, Weighted Average Exercise Price (in dollars per share)	$ 48.99

STOCK-BASED COMPENSATION - Equity Awards (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands	3 Months Ended			12 Months Ended
	Dec. 31, 2017	Jun. 30, 2017	Mar. 31, 2017	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2015
Compensation cost charged against income
Operating expenses				$ 52,282	$ 45,848	$ 32,719
Total employee and non-employee share-based compensation expense included in income, before income tax				52,282	45,848	32,719
Less: Amount of income tax benefit recognized in earnings				(100,635)	(34,909)	(9,058)
Amount charged against net income				(48,353)	10,939	23,661
Operating expense
Compensation cost charged against income
Total employee and non-employee share-based compensation expense included in income, before income tax				$ 52,300	$ 45,800	$ 32,700
Stock options
Stock-based compensation
Weighted-average grant-date fair value of options granted (in dollars per share)				$ 18.29	$ 16.90	$ 16.73
Total intrinsic value of options exercised				$ 285,800	$ 70,600	$ 870,100
Cash received from option exercises				52,600	$ 16,400	$ 49,200
Total unrecognized compensation expense related to non-vested shares granted to employees	$ 83,400			$ 83,400
Cost expected to be recognized over a weighted-average period				2 years 7 months 6 days
Stock units expected to vest (in shares)	16,863			16,863
Restricted stock units
Stock-based compensation
Total unrecognized compensation expense related to non-vested shares granted to employees	$ 14,200			$ 14,200
Cost expected to be recognized over a weighted-average period				1 year 6 months
Stock units expected to vest (in shares)	500			500
Number of Shares
Non-vested at the beginning of the period (in shares)			556	556
Granted (in shares)	2	23	252
Vested (in shares)				(300)
Forfeited/cancelled (in shares)				(3)
Non-vested at the end of the period (in shares)	530			530	556
Weighted Average Grant-Date Fair Value
Non-vested at the beginning of the period (in dollars per share)			$ 39.95	$ 39.95
Granted (in dollars per share)	$ 59.43	$ 50.86	$ 46.27	46.74	$ 44.71	$ 45.50
Vested (in dollars per share)				37.26
Forfeited/cancelled (in dollars per share)				27.02
Non-vested at the end of the period (in dollars per share)	$ 45.09			$ 45.09	$ 39.95
Incentive stock option
Compensation cost charged against income
Total employee and non-employee share-based compensation expense included in income, before income tax				$ 8,700	$ 8,000	$ 6,200
Non-Qualified stock option
Compensation cost charged against income
Total employee and non-employee share-based compensation expense included in income, before income tax				$ 43,600	$ 37,800	$ 26,500

INCOME TAXES - Tax Cuts and Jobs Act (Details) - USD ($) $ in Thousands		12 Months Ended
	Jan. 01, 2018	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2015
Federal statutory rate (as a percent)		35.00%	35.00%	35.00%
Provisional charge, revaluated net deferred tax assets		$ 39,763
Provision related to deemed mandatory repatriation		$ 2,100
Forecast
Federal statutory rate (as a percent)	21.00%

INCOME TAXES - Classification and Reconciliation (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2015
Domestic and foreign components of company's income before income taxes
Domestic	$ 1,062,713	$ 1,029,763	$ 859,039
Foreign	138,910	49,922	32,509
INCOME BEFORE PROVISION FOR INCOME TAXES	1,201,623	1,079,685	891,548
Intercompany royalties, management fees and interest charges from the Company's domestic to foreign entities	42,500	25,600	29,400
Current:
Federal	243,127	212,283	548,018
State	43,252	35,756	88,671
Foreign	27,522	17,171	10,634
Total current provision	313,901	265,210	647,323
Deferred:
Federal	61,797	87,360	(255,422)
State	3,062	15,254	(40,446)
Foreign	(4,579)	(9,709)	(5,420)
Total deferred provision	60,280	92,905	(301,288)
Valuation allowance	6,764	8,885	(1,220)
Total provision for income taxes	$ 380,945	$ 367,000	$ 344,815
Federal statutory rate (as a percent)	35.00%	35.00%	35.00%
Reconciliation of income tax expense
U.S. Federal tax expense at statutory rates	$ 420,568	$ 377,599	$ 312,042
State income taxes, net of federal tax benefit	27,569	33,148	31,046
Permanent differences	10,356	954	5,285
Stock based compensation	(79,687)	(13,654)	3,203
Domestic production deduction	(22,229)	(21,447)
Deferred tax asset reduction (Tax Reform Act)	39,763
Other	3,736	(8,765)	(127)
Foreign rate differential	(25,895)	(9,720)	(5,414)
Valuation allowance	6,764	8,885	(1,220)
Total provision for income taxes	$ 380,945	$ 367,000	$ 344,815

INCOME TAXES - Deferred Taxes (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2015
Deferred Tax Assets:
Reserve for sales returns	$ 159	$ 149
Reserve for inventory obsolescence	522	524
Reserve for marketing development fund	6,360	8,065
Capitalization of inventory costs	1,598	2,714
State franchise tax - current	2,050	18,016
Accrued compensation	1,473	1,212
Accrued other liabilities	3,917	1,817
Deferred revenue	93,321	145,319
Stock-based compensation	21,119	31,873
Foreign net operating loss carryforward	28,965	29,894
Prepaid supplies	7,273	8,022
Termination payments	70,637	98,244
Elimination Company Profit		2,843
Gain on intercompany transfer	6,793	7,274
Other deferred tax assets	3,449	376
Total gross deferred tax assets	247,636	356,342
Deferred Tax Liabilities:
Amortization of trademarks	(21,657)	(18,663)
Intangibles	(84,867)	(131,264)
State franchise tax - deferred	(7,617)	(12,946)
Other deferred tax liabilities	(62)	(1,101)
Depreciation	(8,260)	(6,736)
Total gross deferred tax liabilities	(122,463)	(170,710)
Valuation Allowance	(32,840)	(26,076)
Net deferred tax assets	92,333	159,556
Increase (decrease) to provision for income taxes	6,800	$ 8,900	$ (500)
Net operating loss carryforwards	105,200
Net operating loss carryforwards subject to indefinite carryforward	76,600
Net operating loss carryforwards that begin to expire in 2018	$ 28,600

INCOME TAXES - Unrecognized Tax Benefit Rollforward (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2015
Gross unrecognized tax benefits, roll forward
Balance at the beginning of the period	$ 9	$ 471	$ 935
Additions for tax positions related to the prior year	6,540
Decreases for tax positions related to the prior years	(9)	(462)	(464)
Balance at the end of the period	6,540	$ 9	$ 471
Accrued interest and penalties related to unrecognized tax benefits	$ 1,300

EARNINGS PER SHARE (Details) - shares shares in Thousands	12 Months Ended
EARNINGS PER SHARE (Details) - shares shares in Thousands	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2015
Weighted-average shares outstanding:
Weighted Average Number of Shares Outstanding, Basic	566,782	587,874	566,448
Dilutive securities	10,359	11,945	11,310
Diluted	577,141	599,819	577,758
Options and awards outstanding excluded from the calculations as their effect would have been antidilutive (in shares)	7,900	5,700	3,000

EMPLOYEE BENEFIT PLAN (Details) - Employee 401(k) Plan - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2015
Employee Benefit Plant
Annual employee contribution limit as a percent of compensation	15.00%
Employer matching contribution as a percentage of the employee's contribution	50.00%
Percent of employee's earnings eligible for employer matching contribution	6.00%
Percentage of contribution vested each year	25.00%
Vesting period of contribution by the company	4 years
Matching contributions by the company	$ 2.5	$ 2.0	$ 0.7

SEGMENT INFORMATION - Net Revenues (Details) $ in Thousands	3 Months Ended								12 Months Ended
SEGMENT INFORMATION - Net Revenues (Details) $ in Thousands	Dec. 31, 2017 USD ($)	Sep. 30, 2017 USD ($)	Jun. 30, 2017 USD ($)	Mar. 31, 2017 USD ($)	Dec. 31, 2016 USD ($)	Sep. 30, 2016 USD ($)	Jun. 30, 2016 USD ($)	Mar. 31, 2016 USD ($)	Dec. 31, 2017 USD ($) segment	Dec. 31, 2016 USD ($)	Dec. 31, 2015 USD ($)
Segment information
Number of reportable segments \| segment									3
Number of operating segments \| segment									3
Net Sales	$ 810,355	$ 909,476	$ 907,068	$ 742,146	$ 753,765	$ 787,954	$ 827,488	$ 680,186	$ 3,369,045	$ 3,049,393	$ 2,722,564
Operating income									1,198,787	1,085,338	893,653
Income before tax									1,201,623	1,079,685	891,548
Recognition of deferred revenue									22,300	26,100	50,500
Gain on sale of Monster Non-Energy											161,470
Corporate and unallocated
Segment information
Operating income									(245,833)	(228,505)	(197,474)
Income before tax									(242,957)	(234,334)	(199,939)
Monster Energy Drinks \| Operating segment
Segment information
Net Sales									3,047,596	2,759,862	2,518,505
Operating income									1,264,579	1,148,427	836,053
Income before tax									1,264,555	1,148,640	836,429
Recognition of deferred revenue									43,400	40,300	62,800
Distribution Agreements Termination Cost									35,400	79,800	224,000
Strategic Brands \| Operating segment
Segment information
Net Sales									299,844	272,520	143,282
Operating income									174,458	163,121	89,841
Income before tax									174,442	163,084	89,825
Other \| Operating segment
Segment information
Net Sales									21,605	17,011	60,777
Operating income									5,583	2,295	165,233
Income before tax									$ 5,583	$ 2,295	$ 165,233

SEGMENT INFORMATION - Depreciation and Amortization (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2015
Segment information
Depreciation and amortization	$ 48,887	$ 40,845	$ 30,860
Corporate and unallocated
Segment information
Depreciation and amortization	7,245	6,227	5,297
Operating segment
Segment information
Depreciation and amortization	48,887	40,845	30,860
Monster Energy Drinks \| Operating segment
Segment information
Depreciation and amortization	29,591	24,048	21,464
Strategic Brands \| Operating segment
Segment information
Depreciation and amortization	7,443	7,113	3,868
Other \| Operating segment
Segment information
Depreciation and amortization	$ 4,608	$ 3,457	$ 231

SEGMENT INFORMATION - Expenses (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2015
Segment information
Operating income	$ 1,198,787	$ 1,085,338	$ 893,653
Stock-based compensation expense	52,300	45,800	32,700
Corporate and unallocated
Segment information
Operating income	(245,833)	(228,505)	(197,474)
Payroll costs	156,300	128,000	109,800
Stock-based compensation expense	52,300	45,800	32,700
Professional service expenses	51,800	66,300	60,800
Insurance costs	6,000	6,000	7,000
Other operating expenses	$ 31,700	$ 28,200	$ 19,900

SEGMENT INFORMATION - Concentration Risk (Details) - USD ($) $ in Thousands	3 Months Ended								12 Months Ended
	Dec. 31, 2017	Sep. 30, 2017	Jun. 30, 2017	Mar. 31, 2017	Dec. 31, 2016	Sep. 30, 2016	Jun. 30, 2016	Mar. 31, 2016	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2015
Segment information
Net Sales	$ 810,355	$ 909,476	$ 907,068	$ 742,146	$ 753,765	$ 787,954	$ 827,488	$ 680,186	$ 3,369,045	$ 3,049,393	$ 2,722,564
Outside United States
Segment information
Net Sales									$ 909,300	$ 733,700	$ 580,300
Percentage of net sales to customers									27.00%	24.00%	21.00%
TCCC \| Net Sales \| Customer concentration
Segment information
Percentage of net sales from major customer									18.00%	41.00%	43.00%
CCBCC Operations, LLC \| Net Sales \| Customer concentration
Segment information
Percentage of net sales from major customer									13.00%	9.00%	6.00%

SEGMENT INFORMATION - Goodwill and other intangible assets (Details) - Operating segment - USD ($) $ in Thousands	Dec. 31, 2017	Dec. 31, 2016
Segment information
Goodwill and other intangible assets	$ 2,365,728	$ 2,364,278
Monster Energy Drinks
Segment information
Goodwill and other intangible assets	1,346,648	1,334,494
Strategic Brands
Segment information
Goodwill and other intangible assets	995,582	1,001,749
Other
Segment information
Goodwill and other intangible assets	$ 23,498	$ 28,035

RELATED PARTY TRANSACTIONS (Details) $ in Thousands	12 Months Ended
RELATED PARTY TRANSACTIONS (Details) $ in Thousands	Dec. 31, 2017 USD ($) item	Dec. 31, 2016 USD ($)	Dec. 31, 2015 USD ($)
Related party transactions
TCCC transaction receivable		$ 125,000
TCCC
Related party transactions
Voting interest (as a percent)	18.00%
Commission expense	$ 45,000	28,200	$ 18,000
Net sales	594,100	1,259,700	1,151,700
Purchases from Related Party	26,200	26,200	16,000
Manufacturing expenses	11,800	9,600	6,900
Accounts receivable, net	32,607	151,756
TCCC transaction receivable		125,000
Accounts payable	(45,465)	(41,210)
Accrued promotional allowances	$ (5,884)	(27,056)
Director And Officer
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	$ 2,200	$ 1,500	$ 1,900

SUBSEQUENT EVENTS (Details) - USD ($) $ in Millions	Feb. 27, 2018	Feb. 28, 2017
Subsequent event
Subsequent Events
Stock repurchase program, authorized amount	$ 500.0
February 2018 Repurchase Plan \| Subsequent event
Subsequent Events
Stock repurchase program, authorized amount	250.0
February 2017 Repurchase Plan
Subsequent Events
Stock repurchase program, authorized amount		$ 500.0
February 2017 Repurchase Plan \| Subsequent event
Subsequent Events
Stock repurchase program, authorized remaining amount	$ 250.0

QUARTERLY FINANCIAL DATA (Unaudited) (Details) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended								12 Months Ended
	Dec. 31, 2017	Sep. 30, 2017	Jun. 30, 2017	Mar. 31, 2017	Dec. 31, 2016	Sep. 30, 2016	Jun. 30, 2016	Mar. 31, 2016	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2015
QUARTERLY FINANCIAL DATA (Unaudited)
Net Sales	$ 810,355	$ 909,476	$ 907,068	$ 742,146	$ 753,765	$ 787,954	$ 827,488	$ 680,186	$ 3,369,045	$ 3,049,393	$ 2,722,564
Gross Profit	503,610	569,709	583,497	480,874	498,113	502,975	517,814	423,098	2,137,690	1,942,000	1,632,301
Net income	$ 201,321	$ 218,744	$ 222,633	$ 177,980	$ 172,946	$ 191,643	$ 184,219	$ 163,877	$ 820,678	$ 712,685	$ 546,733
EARNINGS PER SHARE
Income (Loss) from Continuing Operations, Per Basic Share	$ 0.36	$ 0.39	$ 0.39	$ 0.31	$ 0.30	$ 0.34	$ 0.31	$ 0.27	$ 1.45	$ 1.21	$ 0.97
Income (Loss) from Continuing Operations, Per Diluted Share	$ 0.35	$ 0.38	$ 0.39	$ 0.31	$ 0.30	$ 0.33	$ 0.30	$ 0.26	$ 1.42	$ 1.19	$ 0.95

- Definition

The amount of net income (loss) from continuing operations per each share of common stock or unit outstanding during the reporting period.

+ References + Details

- Definition

The amount of net income (loss) derived from continuing operations during the period available to each share of common stock or common unit outstanding during the reporting period and to each share or unit that would have been outstanding assuming the issuance of common shares or units for all dilutive potential common shares or units outstanding during the reporting period.

+ References + Details

SCHEDULE II - VALUATION AND QUALIFYING ACCOUNTS (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2015
Allowance for doubtful accounts, sales returns and cash discounts
Changes to valuation allowance
Balance at beginning of period	$ 1,121	$ 1,248	$ 1,704
Charged to cost and expenses	8,364	7,389	8,407
Deductions	(8,380)	(7,516)	(8,863)
Balance at end of period	1,105	1,121	1,248
Allowance on Deferred Tax Assets and Unrecognized Tax Benefits
Changes to valuation allowance
Balance at beginning of period	26,086	17,846	19,786
Charged to cost and expenses	14,594	8,240	(1,940)
Balance at end of period	$ 40,680	$ 26,086	$ 17,846