0001104659-20-058939 | 10-Q | XBRL Viewer

Document and Entity Information - shares	3 Months Ended
Document and Entity Information - shares	Mar. 31, 2020	Apr. 30, 2020
Document and Entity Information
Document Type	10-Q
Document Period End Date	Mar. 31, 2020
Document Transition Report	false
Entity File Number	001-18761
Entity Registrant Name	MONSTER BEVERAGE CORPORATION
Entity Incorporation, State or Country Code	DE
Entity Tax Identification Number	47-1809393
Entity Address, Address Line One	1 Monster Way
Entity Address, City or Town	Corona
Entity Address, State or Province	CA
Entity Address, Postal Zip Code	92879
City Area Code	951
Local Phone Number	739 - 6200
Title of 12(b) Security	Common Stock
Trading Symbol	MNST
Security Exchange Name	NASDAQ
Entity Current Reporting Status	Yes
Entity Interactive Data Current	Yes
Entity Filer Category	Large Accelerated Filer
Entity Small Business	false
Entity Emerging Growth Company	false
Entity Shell Company	false
Entity Common Stock, Shares Outstanding		526,563,592
Entity Central Index Key	0000865752
Current Fiscal Year End Date	--12-31
Document Fiscal Year Focus	2020
Document Fiscal Period Focus	Q1
Amendment Flag	false
Document Quarterly Report	true

CONDENSED CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands	Mar. 31, 2020	Dec. 31, 2019
CURRENT ASSETS:
Cash and cash equivalents	$ 701,836	$ 797,957
Short-term investments	233,513	533,063
Accounts receivable, net	670,570	540,330
Inventories	352,305	360,731
Prepaid expenses and other current assets	71,865	54,868
Prepaid income taxes	18,633	29,360
Total current assets	2,048,722	2,316,309
INVESTMENTS	13,922	12,905
PROPERTY AND EQUIPMENT, net	295,570	298,640
DEFERRED INCOME TAXES, net	84,777	84,777
GOODWILL	1,331,643	1,331,643
OTHER INTANGIBLE ASSETS, net	1,053,107	1,052,105
OTHER ASSETS	53,756	53,973
Total Assets	4,881,497	5,150,352
CURRENT LIABILITIES:
Accounts payable	305,529	274,045
Accrued liabilities	145,224	114,075
Accrued promotional allowances	171,406	166,761
Deferred revenue	44,844	44,237
Accrued compensation	21,827	47,262
Income taxes payable	12,711	14,717
Total current liabilities	701,541	661,097
DEFERRED REVENUE	278,393	287,469
OTHER LIABILITIES	30,617	30,505
COMMITMENTS AND CONTINGENCIES (Note 12)
STOCKHOLDERS' EQUITY:
Common stock - $0.005 par value; 1,250,000 shares authorized; 637,104 shares issued and 526,839 shares outstanding as of March 31, 2020; 636,460 shares issued and 536,698 shares outstanding as of December 31, 2019	3,186	3,182
Additional paid-in capital	4,428,580	4,397,511
Retained earnings	5,301,315	5,022,480
Accumulated other comprehensive loss	(62,682)	(32,387)
Common stock in treasury, at cost; 110,265 shares and 99,762 shares as of March 31, 2020 and December 31, 2019, respectively	(5,799,453)	(5,219,505)
Total stockholders' equity	3,870,946	4,171,281
Total Liabilities and Stockholders' Equity	$ 4,881,497	$ 5,150,352

CONDENSED CONSOLIDATED BALANCE SHEETS (Parenthetical) - $ / shares shares in Thousands	Mar. 31, 2020	Dec. 31, 2019
CONDENSED CONSOLIDATED BALANCE SHEETS
Common stock, par value (in dollars per share)	$ 0.005	$ 0.005
Common stock, shares authorized	1,250,000	1,250,000
Common stock, shares issued	637,104	636,460
Common stock, shares outstanding	526,839	536,698
Common stock in treasury, shares	110,265	99,762

CONDENSED CONSOLIDATED STATEMENTS OF INCOME - USD ($) shares in Thousands, $ in Thousands	3 Months Ended
	Mar. 31, 2020	Mar. 31, 2019
CONDENSED CONSOLIDATED STATEMENTS OF INCOME
NET SALES	$ 1,062,097	$ 945,991
COST OF SALES	424,901	372,459
GROSS PROFIT	637,196	573,532
OPERATING EXPENSES	272,208	262,071
OPERATING INCOME	364,988	311,461
INTEREST and OTHER INCOME, net	872	2,742
INCOME BEFORE PROVISION FOR INCOME TAXES	365,860	314,203
PROVISION FOR INCOME TAXES	87,025	52,718
NET INCOME	$ 278,835	$ 261,485
NET INCOME PER COMMON SHARE:
Basic (in dollars per share)	$ 0.52	$ 0.48
Diluted (in dollars per share)	$ 0.52	$ 0.48
WEIGHTED AVERAGE NUMBER OF SHARES OF COMMON STOCK AND COMMON STOCK EQUIVALENTS :
Basic (in shares)	536,061	542,768
Diluted (in shares)	540,518	548,273

CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2020	Mar. 31, 2019
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME
Net income, as reported	$ 278,835	$ 261,485
Other comprehensive loss:
Change in foreign currency translation adjustment	(30,599)	(1,381)
Available-for-sale investments:
Change in net unrealized gains	304	120
Net change in available-for-sale investments	304	120
Other comprehensive loss	(30,295)	(1,261)
Comprehensive income	$ 248,540	$ 260,224

CONDENSED 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, 2018	$ 3,155	$ 4,238,170	$ 3,914,645	$ (32,864)	$ (4,512,205)	$ 3,610,901
Balance (in shares) at Dec. 31, 2018	630,970				(87,294)
Increase (Decrease) in Stockholders' Equity
Stock-based compensation		15,324				15,324
Exercise of stock options	$ 19	35,144				35,163
Exercise of stock options (in shares)	3,871
Unrealized gain, net on available-for- sale securities				120		120
Repurchase of common stock					$ (222,792)	(222,792)
Repurchase of common stock (in shares)					(4,000)
Foreign currency translation				(1,381)		(1,381)
Net income			261,485			261,485
Balance at Mar. 31, 2019	$ 3,174	4,288,638	4,176,130	(34,125)	$ (4,734,997)	3,698,820
Balance (in shares) at Mar. 31, 2019	634,841				(91,294)
Balance at Dec. 31, 2019	$ 3,182	4,397,511	5,022,480	(32,387)	$ (5,219,505)	4,171,281
Balance (in shares) at Dec. 31, 2019	636,460				(99,762)
Increase (Decrease) in Stockholders' Equity
Stock-based compensation		17,098				17,098
Exercise of stock options	$ 4	13,971				13,975
Exercise of stock options (in shares)	644
Unrealized gain, net on available-for- sale securities				304		304
Repurchase of common stock					$ (579,948)	(579,948)
Repurchase of common stock (in shares)					(10,503)
Foreign currency translation				(30,599)		(30,599)
Net income			278,835			278,835
Balance at Mar. 31, 2020	$ 3,186	$ 4,428,580	$ 5,301,315	$ (62,682)	$ (5,799,453)	$ 3,870,946
Balance (in shares) at Mar. 31, 2020	637,104				(110,265)

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2020	Mar. 31, 2019
CASH FLOWS FROM OPERATING ACTIVITIES:
Net income	$ 278,835	$ 261,485
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization	16,546	14,870
Gain on disposal of property and equipment	(58)	(115)
Impairment of intangibles	3,000
Stock-based compensation	17,098	15,324
Deferred income taxes		472
Effect on cash of changes in operating assets and liabilities:
Accounts receivable	(147,660)	(116,426)
Distributor receivables	176	2,923
Inventories	1,037	(24,004)
Prepaid expenses and other assets	(18,081)	(21,492)
Prepaid income taxes	8,078	(25,224)
Accounts payable	19,328	18,565
Accrued liabilities	34,500	(2,262)
Accrued promotional allowances	9,439	23,103
Accrued distributor terminations	(282)	10,272
Accrued compensation	(24,807)	(21,832)
Income taxes payable	(1,552)	(4,125)
Other liabilities	(192)	1,338
Deferred revenue	(4,273)	(9,476)
Net cash provided by operating activities	191,132	123,396
CASH FLOWS FROM INVESTING ACTIVITIES:
Sales of available-for-sale investments	513,534	232,387
Purchases of available-for-sale investments	(214,697)	(175,314)
Purchases of property and equipment	(11,119)	(8,485)
Proceeds from sale of property and equipment	217	184
(Increase) decrease in intangibles	(6,811)	298
Increase in other assets	(1,148)	(2,291)
Net cash provided by investing activities	279,976	46,779
CASH FLOWS FROM FINANCING ACTIVITIES:
Principal payments on debt	(733)	(393)
Issuance of common stock	13,975	35,163
Purchases of common stock held in treasury	(559,210)	(222,792)
Net cash used in financing activities	(545,968)	(188,022)
Effect of exchange rate changes on cash and cash equivalents	(21,261)	(1,322)
NET DECREASE IN CASH AND CASH EQUIVALENTS	(96,121)	(19,169)
CASH AND CASH EQUIVALENTS, beginning of period	797,957	637,513
CASH AND CASH EQUIVALENTS, end of period	701,836	618,344
Cash paid during the year for:
Interest	11	15
Income taxes	$ 79,993	$ 82,002

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS SUPPLEMENTAL DISCLOSURE OF NON-CASH ITEMS (Parenthetical) - USD ($) $ in Millions	3 Months Ended
	Mar. 31, 2020	Mar. 31, 2019
CONSOLIDATED STATEMENTS OF CASH FLOWS NON-CASH SUPPLEMENTAL DATA
Accrued liabilities for other intangible assets	$ 12.9	$ 12.3
Accounts payable for repurchase of treasury shares	$ 20.7

BASIS OF PRESENTATION

3 Months Ended

Mar. 31, 2020

BASIS OF PRESENTATION

BASIS OF PRESENTATION

1.	BASIS OF PRESENTATION

Reference is made to the Notes to Consolidated Financial Statements, in Monster Beverage Corporation and Subsidiaries (the “Company”) Annual Report on Form 10-K for the year ended December 31, 2019 for a summary of significant accounting policies utilized by the Company and its consolidated subsidiaries and other disclosures, which should be read in conjunction with this Quarterly Report on Form 10-Q (“Form 10-Q”).

The Company’s condensed consolidated financial statements included in this Form 10-Q have been prepared in accordance with accounting principles generally accepted in the United States of America (“GAAP”) and Securities and Exchange Commission (“SEC”) rules and regulations applicable to interim financial reporting. They do not include all the information and footnote disclosures normally included in annual financial statements prepared in accordance with GAAP. The information set forth in these interim condensed consolidated financial statements for the three-months ended March 31, 2020 and 2019, respectively, is unaudited and reflects all adjustments, which include only normal recurring adjustments and which in the opinion of management are necessary to make the interim condensed consolidated financial statements not misleading. Results of operations for periods covered by this report may not necessarily be indicative of results of operations for the full year.

The preparation of financial statements in conformity with GAAP necessarily requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting periods. Actual results could differ from these estimates.

RECENT ACCOUNTING PRONOUNCEMENTS

3 Months Ended

Mar. 31, 2020

RECENT ACCOUNTING PRONOUNCEMENTS

RECENT ACCOUNTING PRONOUNCEMENTS

2.	RECENT ACCOUNTING PRONOUNCEMENTS

Recently issued accounting pronouncements not yet adopted

In December 2019, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2019-12, “Simplifying the Accounting for Income Taxes”, as part of its simplification initiative to reduce the cost and complexity in accounting for income taxes. ASU 2019-12 removes certain exceptions related to the approach for intraperiod tax allocation, the methodology for calculating income taxes in an interim period and the recognition of deferred tax liabilities for outside basis differences. ASU 2019-12 also amends other aspects of the guidance to help simplify and promote consistent application of GAAP. The guidance is effective for interim and annual periods beginning after December 15, 2020, with early adoption permitted. The Company is currently evaluating the impact of ASU No. 2019-12 on its financial position, results of operations and liquidity.

Recently adopted accounting pronouncements

In August 2018, the FASB issued ASU No. 2018-15, “Intangibles–Goodwill and Other–Internal–Use Software (Topic 350): Customer’s Accounting for Implementation Costs Incurred in a Cloud Computing Arrangement That is a Service Contract.” ASU No. 2018-15 aligns the requirements for capitalizing implementation costs incurred in a hosting arrangement that is a service contract, with the requirements for capitalizing implementation costs incurred to develop or obtain internal-use software. ASU No. 2018-15 was effective for the Company on a prospective or retrospective basis beginning on January 1, 2020. The adoption of ASU No. 2018-15 did not have a material impact on the Company’s financial position, results of operations and liquidity.

In August 2018, the FASB issued ASU No. 2018-14, “Compensation–Retirement Benefits–Defined Benefit Plans–General (Topic 715): Disclosure Framework–Changes to the Disclosure Requirements for Defined Benefit Plans.” ASU No. 2018-14 removes certain disclosures that are not considered cost beneficial, clarifies certain required disclosures and requires certain additional disclosures. ASU No. 2018-14 is effective for the Company on a retrospective basis beginning in the year ending December 31, 2020. The adoption of ASU No. 2018-14 did not have a material impact on the Company’s financial position, results of operations and liquidity.

In August 2018, the FASB issued ASU No. 2018-13, “Fair Value Measurement (Topic 820): Disclosure Framework - Changes to the Disclosure Requirements for Fair Value Measurement.” ASU No. 2018-13 removes certain disclosure requirements related to the fair value hierarchy, modifies existing disclosure requirements related to measurement uncertainty and adds new disclosure

requirements. ASU No. 2018-13 disclosure requirements include disclosing the changes in unrealized gains and losses for the period included in other comprehensive income for recurring Level 3 fair value measurements held at the end of the reporting period and the range and weighted average of significant unobservable inputs used to develop Level 3 fair value measurements. ASU No. 2018-13 was effective for the Company beginning on January 1, 2020. Certain disclosures in the new guidance will need to be applied on a retrospective basis and others on a prospective basis. The adoption of ASU No. 2018-13 did 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. The adoption of ASU No. 2017-04 did not have a material impact on the Company’s 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 was effective for fiscal years, and interim periods within those years, beginning after December 15, 2019. The adoption of ASU No. 2016-13 did not have a material impact on the Company’s disclosures, financial position, results of operations and liquidity.

REVENUE RECOGNITION

3 Months Ended

Mar. 31, 2020

REVENUE RECOGNITION

REVENUE RECOGNITION

3.	REVENUE RECOGNITION

The Company has three operating and reportable segments: (i) Monster Energy® Drinks segment (“Monster Energy® Drinks”), which is primarily comprised of the Company’s Monster Energy® drinks and Reign Total Body Fuel® high performance energy drinks (ii) Strategic Brands segment (“Strategic Brands”), which is primarily comprised of the various energy drink brands acquired from The Coca-Cola Company (“TCCC”) in 2015 as well as the Company’s affordable energy brands, and (iii) Other segment (“Other”), which is comprised of certain products sold by American Fruits and Flavors, LLC, a wholly-owned subsidiary of the Company, to independent third-party customers (the “AFF Third-Party Products”).

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

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

The majority of the Company’s revenue is recognized when it satisfies a single performance obligation by transferring control of its products to a customer. Control is generally transferred when the Company’s products are either shipped or delivered based on the terms contained within the underlying contracts or agreements. Certain of the Company’s bottlers/distributors may also perform a separate function as a co-packer on the Company’s behalf. In such cases, control of the Company’s products passes to such bottlers/distributors when they notify the Company that they have taken possession or transferred the relevant portion of the Company’s finished goods. The Company’s general payment terms are short-term in duration. The Company does not have significant financing components or payment terms. The Company did not have any material unsatisfied performance obligations as of March 31, 2020 and December 31, 2019.

The Company excludes from revenues all taxes assessed by a governmental authority that are imposed on the sale of its products and collected from customers.

Distribution expenses to transport the Company’s products, where applicable, and warehousing expense after manufacture are accounted for within operating expenses.

Promotional and other allowances (variable consideration) recorded as a reduction to net sales, primarily include consideration given to the Company’s bottlers/distributors or retail customers including, but not limited to the following:

●

discounts granted off list prices to support price promotions to end-consumers by retailers;

●

reimbursements given to the Company’s bottlers/distributors for agreed portions of their promotional spend with retailers, including slotting, shelf space allowances and other fees for both new and existing products;

●

the Company’s agreed share of fees given to bottlers/distributors and/or directly to retailers for advertising, in-store marketing and promotional activities;

●

the Company’s agreed share of slotting, shelf space allowances and other fees given directly to retailers, club stores and/or wholesalers;

●

incentives given to the Company’s bottlers/distributors and/or retailers for achieving or exceeding certain predetermined sales goals;

●

discounted or free products;

●

contractual fees given to the Company’s bottlers/distributors related to sales made directly by the Company to certain customers that fall within the bottlers’/distributors’ sales territories; and

●

commissions paid to TCCC based on the Company’s sales to certain wholly-owned subsidiaries of TCCC (the “TCCC Subsidiaries”) and/or to certain companies accounted for under the equity method by TCCC (the “TCCC Related Parties”).

The Company’s promotional allowance programs with its bottlers/distributors and/or retailers are executed through separate agreements in the ordinary course of business. These agreements generally provide for one or more of the arrangements described above and are of varying durations, typically ranging from one week to one year. The Company’s promotional and other allowances are calculated based on various programs with bottlers/distributors and retail customers, and accruals are established at the time of initial product sale for the Company’s anticipated liabilities. These accruals are based on agreed upon terms as well as the Company’s historical experience with similar programs and require management’s judgment with respect to estimating consumer participation and/or bottler/distributor and retail customer performance levels. Differences between such estimated expenses and actual expenses for promotional and other allowance costs have historically been insignificant and are recognized in earnings in the period such differences are determined.

Amounts received pursuant to new and/or amended distribution agreements entered into with certain bottlers/distributors relating to the costs associated with terminating the Company’s prior distributors, are accounted for as revenue ratably over the anticipated life of the respective distribution agreements, generally over 20 years.

The Company also enters into license agreements that generate revenues associated with third-party sales of non-beverage products bearing the Company’s trademarks including, but not limited to, clothing, hats, t-shirts, jackets, helmets and automotive wheels.

Management believes that adequate provision has been made for cash discounts, returns and spoilage based on the Company’s historical experience.

Disaggregation of Revenue

The following tables disaggregate the Company’s revenue by geographical markets and reportable segments:


	Three-Months Ended March 31, 2020
							Latin
							America
	U.S. and						and
Net Sales	Canada		EMEA¹		Asia Pacific		Caribbean		Total
Monster Energy®Drinks	$	690,018	$	164,771	$	85,904	$	51,761	$	992,454
Strategic Brands		37,870		20,346		5,317		1,005		64,538
Other		5,105		—		—		—		5,105
Total Net Sales	$	732,993	$	185,117	$	91,221	$	52,766	$	1,062,097


	Three-Months Ended March 31, 2019
							Latin
							America
	U.S. and						and
Net Sales	Canada		EMEA¹		Asia Pacific		Caribbean		Total
Monster Energy® Drinks	$	642,826	$	124,637	$	62,456	$	40,465	$	870,384
Strategic Brands		41,750		21,908		6,225		403		70,286
Other		5,321		—		—		—		5,321
Total Net Sales	$	689,897	$	146,545	$	68,681	$	40,868	$	945,991

¹Europe, Middle East and Africa (“EMEA”)

Contract Liabilities

Amounts received from certain bottlers/distributors at inception of their distribution contracts or at the inception of certain sales/marketing programs are accounted for as deferred revenue. As of March 31, 2020, the Company had $323.2 million of deferred revenue, which is included in current and long-term deferred revenue in the Company’s condensed consolidated balance sheet. As of December 31, 2019, the Company had $331.7 million of deferred revenue, which is included in current and long-term deferred revenue in the Company’s condensed consolidated balance sheet. During the three-months ended March 31, 2020 and 2019, $10.6 million and $14.2 million, respectively, of deferred revenue was recognized in net sales. See Note 11.

LEASES

3 Months Ended

Mar. 31, 2020

LEASES

LEASES

The Company leases identified assets comprising real estate and equipment. Real estate leases consist primarily of office and warehouse space and equipment leases consist of vehicles and warehouse equipment. At the inception of a contract, the Company assesses whether the contract is, or contains, a lease. The Company’s assessment is based on: (1) whether the contract involves the use of a distinct identified asset, (2) whether the Company obtains the right to substantially all the economic benefit from the use of the asset throughout the term, and (3) whether the Company has the right to direct the use of the asset. At inception of a lease, the Company allocates the consideration in the contract to each lease and non-lease component based on the component’s relative stand-alone price to determine the lease payments. Lease and non-lease components are accounted for separately.

Leases are classified as either finance leases or operating leases based on criteria in Accounting Standards Codification (“ASC”) 842. The Company’s operating leases are comprised of real estate and warehouse equipment, and the Company’s finance leases are comprised of vehicles.

Right-of-use (“ROU”) assets and lease liabilities are recognized at the lease commencement date based on the present value of lease payments over the lease term. As the Company’s leases generally do not provide an implicit rate, the Company uses its incremental borrowing rate based on the estimated rate of interest for collateralized borrowing over a similar term of the lease payments at the

commencement date. ROU assets also include any lease payments made and exclude lease incentives. Lease terms include options to extend or terminate the lease when it is reasonably certain that the Company will exercise that option.

Certain of the Company’s real estate leases contain variable lease payments, including payments based on an index or rate. Variable lease payments based on an index or rate are initially measured using the index or rate in effect at the lease commencement date. Additional payments based on the change in an index or rate, or payments based on a change in the Company’s portion of real estate taxes and insurance, are recorded as a period expense when incurred.

Lease expense for operating leases, consisting of lease payments, is recognized on a straight-line basis over the lease term and is included in operating expenses in the condensed consolidated statement of income. Lease expense for finance leases consists of the amortization of the ROU asset on a straight-line basis over the asset’s estimated useful life and is included in operating expenses in the condensed consolidated statement of income. Interest expense on finance leases is calculated using the amortized cost basis and is included in other income, net in the condensed consolidated statement of income.

The Company’s leases have remaining lease terms of less than one year to 14 years, some of which include options to extend the leases for up to five years, and some of which include options to terminate the leases within one year. The Company has elected not to recognize ROU assets and lease liabilities for short-term operating leases that have a term of 12 months or less.

The components of lease cost were comprised of the following:


	Three-Months		Three-Months
	Ended March 31,		Ended March 31,
	2020		2019
Operating lease cost	$	1,445	$	1,115

Short-term lease cost		707		1,082

Variable lease cost		162		165

Finance leases:
Amortization of ROU assets		148		80
Interest on lease liabilities		11		15
Finance lease cost		159		95

Total lease cost	$	2,473	$	2,457

Supplemental cash flow information for the following periods:


	Three-Months		Three-Months
	Ended March 31,		Ended March 31,
	2020		2019
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows from operating leases	$	1,083	$	889
Operating cash flows from finance leases		11		15
Financing cash flows from finance leases		733		393

ROU assets obtained in exchange for lease obligations:
Finance leases		1,465		415
Operating leases		1,163		26,429

ROU assets for operating and finance leases were comprised of the following at:


	March 31, 2020
	Real Estate		Equipment		Total		Balance Sheet Location
Operating leases	$	30,291	$	384	$	30,675	Other Assets
Finance leases		—		3,569		3,569	Property and Equipment, net


	December 31, 2019
	Real Estate		Equipment		Total		Balance Sheet Location
Operating leases	$	30,926	$	416	$	31,342	Other Assets
Finance leases		—		2,632		2,632	Property and Equipment, net

Operating and finance lease liabilities recognized in the condensed consolidated balance sheets were as follows at:


	March 31, 2020
	Operating Leases		Finance Leases
Accrued liabilities	$	2,830	$	2,209
Other liabilities		25,284		—
Total	$	28,114	$	2,209


	December 31, 2019
	Operating Leases		Finance Leases
Accrued liabilities	$	2,812	$	1,485
Other liabilities		25,651		—
Total	$	28,463	$	1,485

The weighted-average remaining lease terms and weighted-average discount rates for operating and finance leases at March 31, 2020 and December 31, 2019 were as follows:


	March 31, 2020
	Operating Leases		Finance Leases
Weighted-average remaining lease term (years)	9.8		0.8
Weighted-average discount rate	3.2	%	2.7	%


	December 31, 2019
	Operating Leases		Finance Leases
Weighted-average remaining lease term (years)	10.1			0.6
Weighted-average discount rate	3.1	%		2.9	%

The following table reconciles the undiscounted future lease payments for operating and finance leases to the operating and finance leases recorded in the condensed consolidated balance sheet at March 31, 2020:


	Undiscounted Future Lease Payments
	Operating Leases		Finance Leases
2020 (excluding the three-months ended March 31, 2020)	$	2,806	$	1,938
2021		3,450		296
2022		3,482		—
2023		3,068		—
2024		2,791		—
2025 and thereafter		17,692		—
Total lease payments		33,289		2,234
Less imputed interest		(5,175)		(25)
Total	$	28,114	$	2,209

As of March 31, 2020, the Company did not have any significant additional operating or finance leases that have not yet commenced.

INVESTMENTS

3 Months Ended

Mar. 31, 2020

INVESTMENTS

INVESTMENTS

5.	INVESTMENTS

The following table summarizes the Company’s investments at:


									Continuous		Continuous
			Gross		Gross				Unrealized		Unrealized
			Unrealized		Unrealized				Loss Position		Loss Position
	Amortized		Holding		Holding		Fair		less than 12		greater than 12
March 31, 2020	Cost		Gains		Losses		Value		Months		Months
Available-for-sale
Short-term:
Commercial paper	$	57,107	$	—	$	—	$	57,107	$	—	$	—
Municipal securities		95,819		114		113		95,820		113		—
U.S. government agency securities		21,441		62		—		21,503		—		—
U.S. treasuries		46,055		399		—		46,454		—		—
Variable rate demand notes		12,628		—		—		12,628		—		—
Long-term:
U.S. treasuries		4,083		54		—		4,137		—		—
Municipal securities		6,292		4		32		6,264		32		—
U.S. government agency securities		3,512		10		—		3,522		—		—
Total	$	246,937	$	643	$	145	$	247,435	$	145	$	—


									Continuous		Continuous
			Gross		Gross				Unrealized		Unrealized
			Unrealized		Unrealized				Loss Position		Loss Position
	Amortized		Holding		Holding		Fair		less than 12		greater than 12
December 31, 2019	Cost		Gains		Losses		Value		Months		Months
Available-for-sale
Short-term:
Commercial paper	$	83,478	$	—	$	—	$	83,478	$	—	$	—
Certificates of deposit		28,049		—		—		28,049		—		—
Municipal securities		147,983		145		20		148,108		20		—
U.S. government agency securities		40,620		5		35		40,590		35		—
U.S. treasuries		211,055		134		31		211,158		31		—
Variable rate demand notes		21,680		—		—		21,680		—		—
Long-term:
Municipal securities		1,562		—		1		1,561		1		—
U.S. government agency securities		5,267		—		1		5,266		1		—
U.S. treasuries		6,077		1		—		6,078		—		—
Total	$	545,771	$	285	$	88	$	545,968	$	88	$	—

During the three-months ended March 31, 2020 and 2019, realized gains or losses recognized on the sale of investments were not significant.

The Company’s investments at March 31, 2020 and December 31, 2019 in commercial paper, certificates of deposit, municipal securities, U.S. government agency securities, U.S. treasuries 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:


	March 31, 2020				December 31, 2019
	Amortized Cost		Fair Value		Amortized Cost		Fair Value
Less than 1 year:
Commercial paper	$	57,107	$	57,107	$	83,478	$	83,478
Municipal securities		95,819		95,820		147,983		148,108
U.S. government agency securities		21,441		21,503		40,620		40,590
Certificates of deposit		—		—		28,049		28,049
U.S. treasuries		46,055		46,454		211,055		211,158
Due 1 - 10 years:
Municipal securities		6,292		6,264		1,562		1,561
U.S. treasuries		4,083		4,137		6,077		6,078
U.S. government agency securities		3,512		3,522		5,267		5,266
Variable rate demand notes		3,911		3,911		3,905		3,905
Due 11 - 20 years:
Variable rate demand notes		3,485		3,485		8,886		8,886
Due 21 - 30 years:
Variable rate demand notes		3,217		3,217		6,885		6,885
Due 31 - 40 years:
Variable rate demand notes		2,015		2,015		2,004		2,004
Total	$	246,937	$	247,435	$	545,771	$	545,968

FAIR VALUE OF CERTAIN FINANCIAL ASSETS AND LIABILITIES

3 Months Ended

Mar. 31, 2020

FAIR VALUE OF CERTAIN FINANCIAL ASSETS AND LIABILITIES

FAIR VALUE OF CERTAIN FINANCIAL ASSETS AND LIABILITIES

6.	FAIR VALUE OF CERTAIN FINANCIAL ASSETS AND LIABILITIES

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

●

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

●

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

●

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

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

The following tables present the fair value of the Company’s financial assets and liabilities that are recorded at fair value on a recurring basis, segregated among the appropriate levels within the fair value hierarchy at:


March 31, 2020	Level 1		Level 2		Level 3		Total
Cash	$	497,556	$	—	$	—	$	497,556
Money market funds		194,560		—		—		194,560
Certificates of deposit		—		1,607		—		1,607
Commercial paper		—		57,107		—		57,107
Variable rate demand notes		—		12,628		—		12,628
Municipal securities		—		106,292		—		106,292
U.S. government agency securities		—		28,931		—		28,931
U.S. treasuries		—		50,590		—		50,590
Foreign currency derivatives		—		(301)		—		(301)
Total	$	692,116	$	256,854	$	—	$	948,970

Amounts included in:
Cash and cash equivalents	$	692,116	$	9,720	$	—	$	701,836
Short-term investments		—		233,513		—		233,513
Accounts receivable, net		—		203		—		203
Investments		—		13,922		—		13,922
Accrued liabilities		—		(504)		—		(504)
Total	$	692,116	$	256,854	$	—	$	948,970


December 31, 2019	Level 1		Level 2		Level 3		Total
Cash	$	518,178	$	—	$	—	$	518,178
Money market funds		191,131		—		—		191,131
Certificates of deposit		—		28,049		—		28,049
Commercial paper		—		96,867		—		96,867
Variable rate demand notes		—		21,680		—		21,680
Municipal securities		—		167,224		—		167,224
U.S. government agency securities		—		73,634		—		73,634
U.S. treasuries		—		247,162		—		247,162
Foreign currency derivatives		—		(687)		—		(687)
Total	$	709,309	$	633,929	$	—	$	1,343,238

Amounts included in:
Cash and cash equivalents	$	709,309	$	88,648	$	—	$	797,957
Short-term investments		—		533,063		—		533,063
Accounts receivable, net		—		329		—		329
Investments		—		12,905		—		12,905
Accrued liabilities		—		(1,016)		—		(1,016)
Total	$	709,309	$	633,929	$	—	$	1,343,238

All of the Company’s short-term and long-term investments are classified within Level 1 or Level 2 of the fair value hierarchy. The Company’s valuation of its Level 1 investments, which include money market funds, is based on quoted market prices in active markets for identical securities. The Company’s valuation of its Level 2 investments, which include municipal securities, commercial paper, certificates of deposit, VRDNs, U.S. treasuries 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 three-months ended March 31, 2020 or during the year-ended December 31, 2019, 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

3 Months Ended

Mar. 31, 2020

DERIVATIVE INSTRUMENTS AND HEDGING ACTIVITIES

DERIVATIVE INSTRUMENTS AND HEDGING ACTIVITIES

7.	DERIVATIVE INSTRUMENTS AND HEDGING ACTIVITIES

The Company is exposed to foreign currency exchange rate risks related primarily to its foreign business operations. During the three-months ended March 31, 2020 and the year-ended December 31, 2019, the Company entered into forward currency exchange contracts with financial institutions to create an economic hedge to specifically manage a portion of the foreign exchange risk exposure associated with certain consolidated subsidiaries’ non-functional currency denominated assets and liabilities. All foreign currency exchange contracts of the Company that were outstanding as of March 31, 2020 have terms of one month or less. The Company does not enter into forward currency exchange contracts for speculation or trading purposes.

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

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


March 31, 2020
Derivatives not designated as
hedging instruments under	Notional		Fair
ASC 815-20	Amount		Value		Balance Sheet Location
Assets:
Foreign currency exchange contracts:
Receive USD/pay GBP	$	46,342	$	62	Accounts receivable, net
Receive USD/pay AUD		14,276		60	Accounts receivable, net
Receive USD/pay NZD		1,812		35	Accounts receivable, net
Receive USD/pay COP		4,174		14	Accounts receivable, net
Receive USD/pay SEK		2,160		12	Accounts receivable, net
Receive USD/pay ZAR		910		9	Accounts receivable, net
Receive USD/pay NOK		1,008		6	Accounts receivable, net
Receive USD/pay DKK		1,304		4	Accounts receivable, net
Receive SGD/pay USD		914		1	Accounts receivable, net

Liabilities:
Foreign currency exchange contracts:
Receive EUR/pay USD	$	34,987	$	(272)	Accrued liabilities
Receive USD/pay RUB		11,840		(147)	Accrued liabilities
Receive RSD/pay USD		11,530		(85)	Accrued liabilities


December 31, 2019
Derivatives not designated as
hedging instruments under	Notional		Fair
ASC 815-20	Amount		Value		Balance Sheet Location
Assets:
Foreign currency exchange contracts:
Receive EUR/pay USD	$	26,731	$	246	Accounts receivable, net
Receive RSD/pay USD		9,018		59	Accounts receivable, net
Receive NOK/pay USD		2,122		17	Accounts receivable, net
Receive USD/pay SGD		1,555		7	Accounts receivable, net

Liabilities:
Foreign currency exchange contracts:
Receive USD/pay GBP	$	38,406	$	(695)	Accrued liabilities
Receive USD/pay AUD		12,819		(172)	Accrued liabilities
Receive USD/pay RUB		12,777		(55)	Accrued liabilities
Receive USD/pay NZD		3,071		(33)	Accrued liabilities
Receive USD/pay ZAR		3,349		(32)	Accrued liabilities
Receive USD/pay COP		3,793		(18)	Accrued liabilities
Receive USD/pay DKK		1,283		(11)	Accrued liabilities

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


		Amount of gain (loss)
		recognized in income on
		derivatives
Derivatives not designated as	Location of gain (loss)	Three-months ended
hedging instruments under	recognized in income on	March 31,		March 31,
ASC 815-20	derivatives	2020		2019
Foreign currency exchange contracts	Interest and other income, net	$	6,292	$	(1,087)

INVENTORIES

3 Months Ended

Mar. 31, 2020

INVENTORIES

INVENTORIES

8.	INVENTORIES

Inventories consist of the following at:


	March 31,		December 31,
	2020		2019
Raw materials	$	140,990	$	134,885
Finished goods		211,315		225,846
	$	352,305	$	360,731

PROPERTY AND EQUIPMENT, Net

3 Months Ended

Mar. 31, 2020

PROPERTY AND EQUIPMENT, Net

PROPERTY AND EQUIPMENT, Net

9.	PROPERTY AND EQUIPMENT, NET

Property and equipment consist of the following at:


	March 31,		December 31,
	2020		2019
Land	$	78,275	$	78,275
Leasehold improvements		11,517		10,417
Furniture and fixtures		8,272		8,426
Office and computer equipment		22,578		22,766
Computer software		4,788		4,450
Equipment		216,125		214,293
Buildings		126,755		126,338
Vehicles		40,964		41,109
		509,274		506,074
Less: accumulated depreciation and amortization		(213,704)		(207,434)
	$	295,570	$	298,640

Total depreciation and amortization expense recorded was $12.4 million and $12.0 million for the three-months ended March 31, 2020 and 2019, respectively.

GOODWILL AND OTHER INTANGIBLE ASSETS

3 Months Ended

Mar. 31, 2020

GOODWILL AND OTHER INTANGIBLE ASSETS

GOODWILL AND OTHER INTANGIBLE ASSETS

10. GOODWILL AND OTHER INTANGIBLE ASSETS

The following is a roll-forward of goodwill for the three-months ended March 31, 2020 and March 31, 2019 by reportable segment:


	Monster
	Energy®		Strategic
	Drinks		Brands		Other		Total
Balance at December 31, 2019	$	693,644	$	637,999	$	—	$	1,331,643
Acquisitions		—		—		—		—
Balance at March 31, 2020	$	693,644	$	637,999	$	—	$	1,331,643


	Monster
	Energy®		Strategic
	Drinks		Brands		Other		Total
Balance at December 31, 2018	$	693,644	$	637,999	$	—	$	1,331,643
Acquisitions		—		—		—		—
Balance at March 31, 2019	$	693,644	$	637,999	$	—	$	1,331,643

Intangible assets consist of the following at:


	March 31,		December 31,
	2020		2019
Amortizing intangibles	$	66,954	$	66,949
Accumulated amortization		(52,021)		(49,128)
		14,933		17,821
Non-amortizing intangibles		1,038,174		1,034,284
	$	1,053,107	$	1,052,105

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 $2.9 million for both the three-months ended March 31, 2020 and 2019. The Company recorded an impairment charge of $3.0 million on a Strategic Brand trademark in the three-months ended March 31, 2020.

The following is the future estimated amortization expense related to amortizing intangibles as of March 31, 2020:


2020 (excluding the three-months ended March 31, 2020)	$	4,783
2021		4,429
2022		4,404
2023		1,111
2024		13
2025 and thereafter		193
	$	14,933

DISTRIBUTION AGREEMENTS

3 Months Ended

Mar. 31, 2020

DISTRIBUTION AGREEMENTS

DISTRIBUTION AGREEMENTS

11. DISTRIBUTION AGREEMENTS

In accordance with ASC 420, the Company expenses distributor termination costs in the period in which the written notification of termination occurs. The Company incurred termination costs of $0.04 million and $10.7 million for the three-months ended March 31, 2020 and 2019, respectively.

In the normal course of business, amounts received pursuant to new and/or amended distribution agreements entered into with certain bottlers/distributors, relating to the costs associated with terminating agreements with the Company’s prior distributors, are accounted for as deferred revenue and are recognized as revenue ratably over the anticipated life of the respective distribution agreement, generally 20 years. Revenue recognized was $10.6 million and $14.2 million for the three-months ended March 31, 2020 and 2019, respectively.

COMMITMENTS AND CONTINGENCIES

3 Months Ended

Mar. 31, 2020

COMMITMENTS AND CONTINGENCIES

COMMITMENTS AND CONTINGENCIES

12. COMMITMENTS AND CONTINGENCIES

The Company had purchase commitments aggregating approximately $70.5 million at March 31, 2020, which represented commitments made by the Company and its subsidiaries to various suppliers of raw materials for the production of its products. These obligations vary in terms, but are generally satisfied within one year.

The Company had contractual obligations aggregating approximately $200.5 million at March 31, 2020, which related primarily to sponsorships and other marketing activities.

In February 2018, the working capital line limit for the Company’s credit facility with HSBC Bank (China) Company Limited, Shanghai Branch, was increased from $9.0 million to $15.0 million. At March 31, 2020, the interest rate on borrowings under the line of credit was 5.5%. As of March 31, 2020, the Company had no amounts outstanding on this line of credit.

Legal Proceedings

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.

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 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 March 31, 2020, the Company’s consolidated balance sheet included accrued loss contingencies of approximately $15.6 million.

ACCUMULATED OTHER COMPREHENSIVE LOSS

3 Months Ended

Mar. 31, 2020

ACCUMULATED OTHER COMPREHENSIVE LOSS

ACCUMULATED OTHER COMPREHENSIVE LOSS

13. ACCUMULATED OTHER COMPREHENSIVE LOSS

Changes in accumulated other comprehensive loss (income) by component, after tax, for the three-months ended March 31, 2020 and 2019 are as follows:


			Unrealized
	Currency		(Gains) Losses
	Translation		on Available-for-
	Losses		Sale Securities		Total
Balance at December 31, 2019	$	32,581	$	(194)	$	32,387
Other comprehensive loss (income) before reclassifications		30,599		(304)		30,295
Amounts reclassified from accumulated other comprehensive loss (income)		—		—		—
Net current-period other comprehensive loss (income)		30,599		(304)		30,295
Balance at March 31, 2020	$	63,180	$	(498)	$	62,682


			Unrealized
	Currency		(Gains) Losses
	Translation		on Available-for-
	Losses		Sale Securities		Total
Balance at December 31, 2018	$	32,775	$	89	$	32,864
Other comprehensive loss (income) before reclassifications		1,381		(120)		1,261
Amounts reclassified from accumulated other comprehensive loss (income)		—		—		—
Net current-period other comprehensive loss (income)		1,381		(120)		1,261
Balance at March 31, 2019	$	34,156	$	(31)	$	34,125

TREASURY STOCK

3 Months Ended

Mar. 31, 2020

TREASURY STOCK

TREASURY STOCK

14. TREASURY STOCK

On February 26, 2019, the Company’s Board of Directors authorized a share repurchase program for the purchase of up to $500.0 million of the Company’s outstanding common stock (the “February 2019 Repurchase Plan”). During the three-months ended March 31, 2020, the Company purchased 0.6 million shares of common stock at an average purchase price of $58.16 per share, for a total amount of $36.6 million (excluding broker commissions), which exhausted the availability under the February 2019 Repurchase Plan. Such shares are included in common stock in treasury in the accompanying condensed consolidated balance sheet at March 31, 2020.

On November 6, 2019, 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 “November 2019 Repurchase Plan”). During the three-months ended March 31, 2020, the Company purchased 9.1 million shares of common stock at an average purchase price of $54.86 per share, for a total amount of $499.9 million (excluding broker commissions), which exhausted the availability under the November 2019 Repurchase Plan. Such shares are included in common stock in treasury in the accompanying condensed consolidated balance sheet at March 31, 2020.

On March 13, 2020, 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 “March 2020 Repurchase Plan”). During the three-months ended March 31, 2020, the Company purchased 0.8 million shares of common stock at an average purchase price of $57.01 per share, for a total amount of $42.9 million (excluding broker commissions), under the March 2020 Repurchase Plan. Such shares are included in common stock in treasury in the accompanying condensed consolidated balance sheet at March 31, 2020. As of May 8, 2020, $441.5 million remained available for repurchase under the March 2020 Repurchase Plan.

During the three-months ended March 31, 2020, 11,007 shares of common stock were purchased from employees in lieu of cash payments for options exercised or withholding taxes due for a total amount of $0.6 million. While such purchases are considered common stock repurchases, they are not counted as purchases against our authorized share repurchase programs. Such shares are included in common stock in treasury in the accompanying condensed consolidated balance sheet at March 31, 2020.

STOCK-BASED COMPENSATION

3 Months Ended

Mar. 31, 2020

STOCK-BASED COMPENSATION

STOCK-BASED COMPENSATION

15. STOCK-BASED COMPENSATION

The Company has two stock-based compensation plans under which shares were available for grant at March 31, 2020: the Monster Beverage Corporation 2011 Omnibus Incentive Plan, including the Monster Beverage Corporation Deferred Compensation Plan as a sub plan thereunder, and the Monster Beverage Corporation 2017 Compensation Plan for Non-Employee Directors, including the Monster Beverage Corporation Deferred Compensation Plan for Non-Employee Directors as a sub plan thereunder.

The Company recorded $17.1 million and $15.3 million of compensation expense relating to outstanding options, restricted stock units and performance share units during the three-months ended March 31, 2020 and 2019, respectively.

The tax benefit for tax deductions from non-qualified stock option exercises, disqualifying dispositions of incentive stock options and vesting of restricted stock units and performance share units for the three-months ended March 31, 2020 and 2019 was $1.7 million and $22.4 million, respectively.

Stock Options

Under the Company’s stock-based compensation plans, all stock options granted as of March 31, 2020 were granted at prices based on the fair value of the Company’s common stock on the date of grant. The Company records compensation expense for stock options based on the estimated fair value of the options on the date of grant using the Black-Scholes-Merton option pricing formula with the assumptions included in the table below. The Company uses historical data to determine the exercise behavior, volatility and forfeiture rate of the options.

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


	Three-Months Ended March 31,
	2020		2019
Dividend yield	0.0	%	0.0	%
Expected volatility	30.5	%	30.2	%
Risk-free interest rate	0.7	%	2.4	%
Expected term	5.8	years	6.0	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 the expected time to post-vesting exercise of options by employees. The Company uses historical exercise patterns of previously granted options to derive employee behavioral patterns used to forecast expected exercise patterns.

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


				Weighted-
		Weighted-		Average
		Average		Remaining
	Number of	Exercise		Contractual
	Shares (in	Price Per		Term (In	Aggregate
Options	thousands)	Share		years)	Intrinsic Value
Outstanding at January 1, 2020	14,941	$	42.88	6.3	$	308,884
Granted 01/01/20 - 03/31/20	1,027	$	62.45
Exercised	(372)	$	37.52
Cancelled or forfeited	(33)	$	52.50
Outstanding at March 31, 2020	15,563	$	44.28	6.4	$	204,418
Vested and expected to vest in the future at March 31, 2020	14,755	$	43.58	6.2	$	202,679
Exercisable at March 31, 2020	9,301	$	36.98	5.2	$	182,359

The weighted-average grant-date fair value of options granted during the three-months ended March 31, 2020 and 2019 was $18.78 per share and $20.30 per share, respectively.

The total intrinsic value of options exercised during the three-months ended March 31, 2020 and 2019 was $10.9 million and $178.5 million, respectively.

Cash received from option exercises under all plans for the three-months ended March 31, 2020 and 2019 was $14.0 million and $35.2 million, respectively.

At March 31, 2020, there was $86.8 million of total unrecognized compensation expense related to non-vested options granted to employees under the Company’s stock-based payment plans. That cost is expected to be recognized over a weighted-average period of 2.7 years.

Restricted Stock Units and Performance Share Units

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

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


		Weighted
	Number of	Average
	Shares (in	Grant-Date
	thousands)	Fair Value
Non-vested at January 1, 2020	825	$	57.62
Granted 01/01/20 - 03/31/20¹	392	$	62.39
Vested	(271)	$	55.53
Forfeited/cancelled	(1)	$	59.67
Non-vested at March 31, 2020	945	$	60.21

¹The grant activity for performance share units is recorded based on the target performance level earning 100% of target performance share units. The actual number of performance share units earned could range from 0% to 200% of target dependent on the pre-established performance goals.

The weighted-average grant-date fair value of restricted stock units and performance share units granted during the three-months ended March 31, 2020 was $62.39 per share. The weighted-average grant-date fair value of restricted stock units granted during the three-months ended March 31, 2019 was $59.66 per share. No performance share units were granted during the three-months ended March 31, 2019. As of March 31, 2020, 0.8 million of restricted stock units and performance share units are expected to vest over their respective terms.

At March 31, 2020, total unrecognized compensation expense relating to non-vested restricted stock units and performance share units was $47.2 million, which is expected to be recognized over a weighted-average period of 2.9 years.

INCOME TAXES

3 Months Ended

Mar. 31, 2020

INCOME TAXES

INCOME TAXES

16. INCOME TAXES

The following is a roll-forward of the Company’s total gross unrecognized tax benefits, not including interest and penalties, for the three-months ended March 31, 2020:


	Gross Unrecognized Tax
	Benefits
Balance at December 31, 2019	$	2,993
Additions for tax positions related to the current year		—
Additions for tax positions related to the prior years		—
Decreases related to settlement with taxing authority		—
Balance at March 31, 2020	$	2,993

The Company recognizes accrued interest and penalties related to unrecognized tax benefits in the provision for income taxes in the Company’s condensed consolidated financial statements. As of March 31, 2020, the Company had approximately $0.4 million in accrued interest and penalties related to unrecognized tax benefits. If the Company were to prevail on all uncertain tax positions, the resultant impact on the Company’s effective tax rate would not be significant. It is expected that any change in the amount of unrecognized tax benefits within the next 12 months will not be significant.

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

The Company is in various stages of examination with certain states and certain foreign jurisdictions, including the United Kingdom and Ireland. The Company’s 2016 through 2019 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 2015 through 2019 tax years.

EARNINGS PER SHARE

3 Months Ended

Mar. 31, 2020

EARNINGS PER SHARE

EARNINGS PER SHARE

17. EARNINGS PER SHARE

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


	Three-Months Ended
	March 31,
	2020	2019
Weighted-average shares outstanding:
Basic	536,061	542,768
Dilutive	4,457	5,505
Diluted	540,518	548,273

For the three-months ended March 31, 2020 and 2019, options and awards outstanding totaling 4.8 million shares and 4.3 million shares, respectively, were excluded from the calculations as their effect would have been antidilutive.

SEGMENT INFORMATION

3 Months Ended

Mar. 31, 2020

SEGMENT INFORMATION

SEGMENT INFORMATION

18. SEGMENT INFORMATION

The Company has three operating and reportable segments: (i) Monster Energy® Drinks segment, which is primarily comprised of the Company’s Monster Energy® drinks and Reign Total Body Fuel® high performance energy drinks, (ii) Strategic Brands segment, which is primarily comprised of the various energy drink brands acquired from TCCC in 2015 as well as the Company’s affordable energy brands, and (iii) Other segment, which is comprised of the AFF Third-Party Products.

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

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

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

The net revenues derived from the Company’s reportable segments and other financial information related thereto for the three-months ended March 31, 2020 and 2019 are as follows:


	Three-Months Ended
	March 31,
	2020		2019
Net sales:
Monster Energy® Drinks⁽¹⁾	$	992,454	$	870,384
Strategic Brands		64,538		70,286
Other		5,105		5,321
Corporate and unallocated		—		—
	$	1,062,097	$	945,991


	Three-Months Ended
	March 31,
	2020		2019
Operating Income:
Monster Energy®Drinks^{(1) (2)}	$	411,141	$	342,999
Strategic Brands		36,719		45,581
Other		787		902
Corporate and unallocated		(83,659)		(78,021)
	$	364,988	$	311,461


	Three-Months Ended
	March 31,
	2020		2019
Income before tax:
Monster Energy®Drinks^{(1) (2)}	$	411,178	$	343,016
Strategic Brands		36,719		45,577
Other		787		902
Corporate and unallocated		(82,824)		(75,292)
	$	365,860	$	314,203

(1)

Includes $10.6 million and $14.2 million for the three-months ended March 31, 2020 and 2019, respectively, related to the recognition of deferred revenue.

(2)

Includes $0.04 million and $10.7 million for the three-months ended March 31, 2020 and 2019, respectively, related to distributor termination costs.


	Three-Months Ended
	March 31,
	2020		2019
Depreciation and amortization:
Monster Energy®Drinks	$	9,651	$	9,798
Strategic Brands		2,030		1,963
Other		1,165		1,155
Corporate and unallocated		2,479		1,954
	$	15,325	$	14,870

Corporate and unallocated expenses for the three-months ended March 31, 2020 include $55.3 million of payroll costs, of which $17.1 million was attributable to stock-based compensation expenses (see Note 15 “Stock-Based Compensation”), as well as $16.3 million attributable to professional service expenses, including accounting and legal costs, and $12.1 million of other operating expenses. Corporate and unallocated expenses for the three-months ended March 31, 2019 include $50.4 million of payroll costs, of which $15.3 million was attributable to stock-based compensation expenses (see Note 15 “Stock-Based Compensation”), as well as $17.5 million attributable to professional service expenses, including accounting and legal costs, and $10.1 million of other operating expenses.

Coca-Cola Consolidated, Inc. accounted for approximately 12% and 13% of the Company’s net sales for the three-months ended March 31, 2020 and 2019, respectively.

Reyes Coca-Cola Bottling, LLC accounted for approximately 11% and 12% of the Company’s net sales for the three-months ended March 31, 2020 and 2019, respectively.

Coca-Cola European Partners accounted for approximately 10% and 9% of the Company’s net sales for the three-months ended March 31, 2020 and 2019, respectively.

Net sales to customers outside the United States amounted to $356.8 million and $284.1 million for the three-months ended March 31, 2020 and 2019, respectively. Such sales were approximately 34% and 30% of net sales for the three-months ended March 31, 2020 and 2019, respectively.

Goodwill and other intangible assets for the Company’s reportable segments as of March 31, 2020 and December 31, 2019 are as follows:


	March 31,		December 31,
	2020		2019
Goodwill and other intangible assets:
Monster Energy®Drinks	$	1,391,507	$	1,384,940
Strategic Brands		979,963		984,393
Other		13,280		14,415
Corporate and unallocated		—		—
	$	2,384,750	$	2,383,748

RELATED PARTY TRANSACTIONS

3 Months Ended

Mar. 31, 2020

RELATED PARTY TRANSACTIONS

RELATED PARTY TRANSACTIONS

19. RELATED PARTY TRANSACTIONS

TCCC controls approximately 19.4% of the voting interests of the Company. The TCCC Subsidiaries, the TCCC Related Parties and certain TCCC independent bottlers/distributors, purchase and distribute the Company’s products in domestic and certain international markets. The Company also pays TCCC a commission based on certain sales within the TCCC distribution network.

TCCC commissions, based on sales to the TCCC Subsidiaries and the TCCC Related Parties, were $10.9 million and $12.1 million for the three-months ended March 31, 2020 and 2019, respectively, and are included as a reduction to net sales.

TCCC commissions, based on sales to certain TCCC independent bottlers/distributors, were $4.4 million and $3.8 million for the three-months ended March 31, 2020 and 2019, respectively, and are included in operating expenses.

Net sales to the TCCC Subsidiaries for the three-months ended March 31, 2020 and 2019 were $19.5 million and $17.3 million, respectively.

The Company also purchases concentrates from TCCC which are then sold to certain of the Company’s bottlers/distributors. Concentrate purchases from TCCC were $4.2 million and $6.6 million for the three-months ended March 31, 2020 and 2019, respectively.

Certain TCCC Subsidiaries also contract manufacture certain of the Company’s energy drinks. Such contract manufacturing expenses were $4.0 million and $4.5 million for the three-months ended March 31, 2020 and 2019, respectively.

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


	March 31,		December 31,
	2020		2019
Accounts receivable, net	$	49,289	$	21,670
Accounts payable	$	(18,356)	$	(18,217)
Accrued promotional allowances	$	(6,007)	$	(5,321)
Accrued liabilities	$	(14,451)	$	—

One director of the Company through certain trusts, and a family member of one director, are principal owners of a company that provides promotional materials to the Company. Expenses incurred with such company in connection with promotional materials purchased during the three-months ended March 31, 2020 and 2019 were $0.7 million and $0.3 million, respectively.

In December 2018, the Company and a director of the Company entered into a 50-50 partnership that purchased land, and real property thereon, in Kona, Hawaii for the purpose of producing coffee products. The Company’s initial 50% contribution of $1.9 million was accounted for as an equity investment and is included in other assets (non-current) in the accompanying condensed consolidated balance sheet at March 31, 2020. During the three-months ended March 31, 2020, the Company made no additional capital contributions and recorded an equity loss of $0.03 million. As of March 31, 2020, the Company’s equity investment is $1.8 million and is included in other assets (non-current) in the accompanying condensed consolidated balance sheet.

SUBSEQUENT EVENTS

3 Months Ended

Mar. 31, 2020

SUBSEQUENT EVENTS

SUBSEQUENT EVENTS

20. SUBSEQUENT EVENTS

In April 2020, the Company entered into an agreement to acquire a three-story office building located in Uxbridge, United Kingdom for approximately $10.0 million. The acquisition of the building is expected to close in mid-May 2020. The building is currently being leased by the Company.

REVENUE RECOGNITION (Tables)

3 Months Ended

Mar. 31, 2020

REVENUE RECOGNITION

Schedule of disaggregation of revenue by geographical markets


	Three-Months Ended March 31, 2020
							Latin
							America
	U.S. and						and
Net Sales	Canada		EMEA¹		Asia Pacific		Caribbean		Total
Monster Energy®Drinks	$	690,018	$	164,771	$	85,904	$	51,761	$	992,454
Strategic Brands		37,870		20,346		5,317		1,005		64,538
Other		5,105		—		—		—		5,105
Total Net Sales	$	732,993	$	185,117	$	91,221	$	52,766	$	1,062,097


	Three-Months Ended March 31, 2019
							Latin
							America
	U.S. and						and
Net Sales	Canada		EMEA¹		Asia Pacific		Caribbean		Total
Monster Energy® Drinks	$	642,826	$	124,637	$	62,456	$	40,465	$	870,384
Strategic Brands		41,750		21,908		6,225		403		70,286
Other		5,321		—		—		—		5,321
Total Net Sales	$	689,897	$	146,545	$	68,681	$	40,868	$	945,991

¹Europe, Middle East and Africa (“EMEA”)

LEASES (Tables)

3 Months Ended

Mar. 31, 2020

LEASES

Schedule of lease cost


	Three-Months		Three-Months
	Ended March 31,		Ended March 31,
	2020		2019
Operating lease cost	$	1,445	$	1,115

Short-term lease cost		707		1,082

Variable lease cost		162		165

Finance leases:
Amortization of ROU assets		148		80
Interest on lease liabilities		11		15
Finance lease cost		159		95

Total lease cost	$	2,473	$	2,457

Schedule of supplemental cash flow information for leases


	Three-Months		Three-Months
	Ended March 31,		Ended March 31,
	2020		2019
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows from operating leases	$	1,083	$	889
Operating cash flows from finance leases		11		15
Financing cash flows from finance leases		733		393

ROU assets obtained in exchange for lease obligations:
Finance leases		1,465		415
Operating leases		1,163		26,429

Schedule of ROU assets for operating and finance leases


	March 31, 2020
	Real Estate		Equipment		Total		Balance Sheet Location
Operating leases	$	30,291	$	384	$	30,675	Other Assets
Finance leases		—		3,569		3,569	Property and Equipment, net


	December 31, 2019
	Real Estate		Equipment		Total		Balance Sheet Location
Operating leases	$	30,926	$	416	$	31,342	Other Assets
Finance leases		—		2,632		2,632	Property and Equipment, net

Summary of operating and finance lease liabilities recognized in the condensed consolidated balance sheets


	March 31, 2020
	Operating Leases		Finance Leases
Accrued liabilities	$	2,830	$	2,209
Other liabilities		25,284		—
Total	$	28,114	$	2,209


	December 31, 2019
	Operating Leases		Finance Leases
Accrued liabilities	$	2,812	$	1,485
Other liabilities		25,651		—
Total	$	28,463	$	1,485

Schedule of weighted-average remaining lease term and weighted-average discount rate


	March 31, 2020
	Operating Leases		Finance Leases
Weighted-average remaining lease term (years)	9.8		0.8
Weighted-average discount rate	3.2	%	2.7	%


	December 31, 2019
	Operating Leases		Finance Leases
Weighted-average remaining lease term (years)	10.1			0.6
Weighted-average discount rate	3.1	%		2.9	%

Schedule of reconciliation of undiscounted future lease payments for operating and finance leases


	Undiscounted Future Lease Payments
	Operating Leases		Finance Leases
2020 (excluding the three-months ended March 31, 2020)	$	2,806	$	1,938
2021		3,450		296
2022		3,482		—
2023		3,068		—
2024		2,791		—
2025 and thereafter		17,692		—
Total lease payments		33,289		2,234
Less imputed interest		(5,175)		(25)
Total	$	28,114	$	2,209

INVESTMENTS (Tables)

3 Months Ended

Mar. 31, 2020

INVESTMENTS

Summary of investments in available-for-sale


									Continuous		Continuous
			Gross		Gross				Unrealized		Unrealized
			Unrealized		Unrealized				Loss Position		Loss Position
	Amortized		Holding		Holding		Fair		less than 12		greater than 12
March 31, 2020	Cost		Gains		Losses		Value		Months		Months
Available-for-sale
Short-term:
Commercial paper	$	57,107	$	—	$	—	$	57,107	$	—	$	—
Municipal securities		95,819		114		113		95,820		113		—
U.S. government agency securities		21,441		62		—		21,503		—		—
U.S. treasuries		46,055		399		—		46,454		—		—
Variable rate demand notes		12,628		—		—		12,628		—		—
Long-term:
U.S. treasuries		4,083		54		—		4,137		—		—
Municipal securities		6,292		4		32		6,264		32		—
U.S. government agency securities		3,512		10		—		3,522		—		—
Total	$	246,937	$	643	$	145	$	247,435	$	145	$	—


									Continuous		Continuous
			Gross		Gross				Unrealized		Unrealized
			Unrealized		Unrealized				Loss Position		Loss Position
	Amortized		Holding		Holding		Fair		less than 12		greater than 12
December 31, 2019	Cost		Gains		Losses		Value		Months		Months
Available-for-sale
Short-term:
Commercial paper	$	83,478	$	—	$	—	$	83,478	$	—	$	—
Certificates of deposit		28,049		—		—		28,049		—		—
Municipal securities		147,983		145		20		148,108		20		—
U.S. government agency securities		40,620		5		35		40,590		35		—
U.S. treasuries		211,055		134		31		211,158		31		—
Variable rate demand notes		21,680		—		—		21,680		—		—
Long-term:
Municipal securities		1,562		—		1		1,561		1		—
U.S. government agency securities		5,267		—		1		5,266		1		—
U.S. treasuries		6,077		1		—		6,078		—		—
Total	$	545,771	$	285	$	88	$	545,968	$	88	$	—

Summary of the underlying contractual maturities of investments


	March 31, 2020				December 31, 2019
	Amortized Cost		Fair Value		Amortized Cost		Fair Value
Less than 1 year:
Commercial paper	$	57,107	$	57,107	$	83,478	$	83,478
Municipal securities		95,819		95,820		147,983		148,108
U.S. government agency securities		21,441		21,503		40,620		40,590
Certificates of deposit		—		—		28,049		28,049
U.S. treasuries		46,055		46,454		211,055		211,158
Due 1 - 10 years:
Municipal securities		6,292		6,264		1,562		1,561
U.S. treasuries		4,083		4,137		6,077		6,078
U.S. government agency securities		3,512		3,522		5,267		5,266
Variable rate demand notes		3,911		3,911		3,905		3,905
Due 11 - 20 years:
Variable rate demand notes		3,485		3,485		8,886		8,886
Due 21 - 30 years:
Variable rate demand notes		3,217		3,217		6,885		6,885
Due 31 - 40 years:
Variable rate demand notes		2,015		2,015		2,004		2,004
Total	$	246,937	$	247,435	$	545,771	$	545,968

FAIR VALUE OF CERTAIN FINANCIAL ASSETS AND LIABILITIES (Tables)

3 Months Ended

Mar. 31, 2020

FAIR VALUE OF CERTAIN FINANCIAL ASSETS AND LIABILITIES

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


March 31, 2020	Level 1		Level 2		Level 3		Total
Cash	$	497,556	$	—	$	—	$	497,556
Money market funds		194,560		—		—		194,560
Certificates of deposit		—		1,607		—		1,607
Commercial paper		—		57,107		—		57,107
Variable rate demand notes		—		12,628		—		12,628
Municipal securities		—		106,292		—		106,292
U.S. government agency securities		—		28,931		—		28,931
U.S. treasuries		—		50,590		—		50,590
Foreign currency derivatives		—		(301)		—		(301)
Total	$	692,116	$	256,854	$	—	$	948,970

Amounts included in:
Cash and cash equivalents	$	692,116	$	9,720	$	—	$	701,836
Short-term investments		—		233,513		—		233,513
Accounts receivable, net		—		203		—		203
Investments		—		13,922		—		13,922
Accrued liabilities		—		(504)		—		(504)
Total	$	692,116	$	256,854	$	—	$	948,970


December 31, 2019	Level 1		Level 2		Level 3		Total
Cash	$	518,178	$	—	$	—	$	518,178
Money market funds		191,131		—		—		191,131
Certificates of deposit		—		28,049		—		28,049
Commercial paper		—		96,867		—		96,867
Variable rate demand notes		—		21,680		—		21,680
Municipal securities		—		167,224		—		167,224
U.S. government agency securities		—		73,634		—		73,634
U.S. treasuries		—		247,162		—		247,162
Foreign currency derivatives		—		(687)		—		(687)
Total	$	709,309	$	633,929	$	—	$	1,343,238

Amounts included in:
Cash and cash equivalents	$	709,309	$	88,648	$	—	$	797,957
Short-term investments		—		533,063		—		533,063
Accounts receivable, net		—		329		—		329
Investments		—		12,905		—		12,905
Accrued liabilities		—		(1,016)		—		(1,016)
Total	$	709,309	$	633,929	$	—	$	1,343,238

DERIVATIVE INSTRUMENTS AND HEDGING ACTIVITIES (Tables)

3 Months Ended

Mar. 31, 2020

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


March 31, 2020
Derivatives not designated as
hedging instruments under	Notional		Fair
ASC 815-20	Amount		Value		Balance Sheet Location
Assets:
Foreign currency exchange contracts:
Receive USD/pay GBP	$	46,342	$	62	Accounts receivable, net
Receive USD/pay AUD		14,276		60	Accounts receivable, net
Receive USD/pay NZD		1,812		35	Accounts receivable, net
Receive USD/pay COP		4,174		14	Accounts receivable, net
Receive USD/pay SEK		2,160		12	Accounts receivable, net
Receive USD/pay ZAR		910		9	Accounts receivable, net
Receive USD/pay NOK		1,008		6	Accounts receivable, net
Receive USD/pay DKK		1,304		4	Accounts receivable, net
Receive SGD/pay USD		914		1	Accounts receivable, net

Liabilities:
Foreign currency exchange contracts:
Receive EUR/pay USD	$	34,987	$	(272)	Accrued liabilities
Receive USD/pay RUB		11,840		(147)	Accrued liabilities
Receive RSD/pay USD		11,530		(85)	Accrued liabilities


December 31, 2019
Derivatives not designated as
hedging instruments under	Notional		Fair
ASC 815-20	Amount		Value		Balance Sheet Location
Assets:
Foreign currency exchange contracts:
Receive EUR/pay USD	$	26,731	$	246	Accounts receivable, net
Receive RSD/pay USD		9,018		59	Accounts receivable, net
Receive NOK/pay USD		2,122		17	Accounts receivable, net
Receive USD/pay SGD		1,555		7	Accounts receivable, net

Liabilities:
Foreign currency exchange contracts:
Receive USD/pay GBP	$	38,406	$	(695)	Accrued liabilities
Receive USD/pay AUD		12,819		(172)	Accrued liabilities
Receive USD/pay RUB		12,777		(55)	Accrued liabilities
Receive USD/pay NZD		3,071		(33)	Accrued liabilities
Receive USD/pay ZAR		3,349		(32)	Accrued liabilities
Receive USD/pay COP		3,793		(18)	Accrued liabilities
Receive USD/pay DKK		1,283		(11)	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
Derivatives not designated as	Location of gain (loss)	Three-months ended
hedging instruments under	recognized in income on	March 31,		March 31,
ASC 815-20	derivatives	2020		2019
Foreign currency exchange contracts	Interest and other income, net	$	6,292	$	(1,087)

INVENTORIES (Tables)

3 Months Ended

Mar. 31, 2020

INVENTORIES

Schedule of inventories


	March 31,		December 31,
	2020		2019
Raw materials	$	140,990	$	134,885
Finished goods		211,315		225,846
	$	352,305	$	360,731

PROPERTY AND EQUIPMENT, Net (Tables)

3 Months Ended

Mar. 31, 2020

PROPERTY AND EQUIPMENT, Net

Schedule of property and equipment


	March 31,		December 31,
	2020		2019
Land	$	78,275	$	78,275
Leasehold improvements		11,517		10,417
Furniture and fixtures		8,272		8,426
Office and computer equipment		22,578		22,766
Computer software		4,788		4,450
Equipment		216,125		214,293
Buildings		126,755		126,338
Vehicles		40,964		41,109
		509,274		506,074
Less: accumulated depreciation and amortization		(213,704)		(207,434)
	$	295,570	$	298,640

GOODWILL AND OTHER INTANGIBLE ASSETS (Tables)

3 Months Ended

Mar. 31, 2020

GOODWILL AND OTHER INTANGIBLE ASSETS

Schedule of goodwill


	Monster
	Energy®		Strategic
	Drinks		Brands		Other		Total
Balance at December 31, 2019	$	693,644	$	637,999	$	—	$	1,331,643
Acquisitions		—		—		—		—
Balance at March 31, 2020	$	693,644	$	637,999	$	—	$	1,331,643


	Monster
	Energy®		Strategic
	Drinks		Brands		Other		Total
Balance at December 31, 2018	$	693,644	$	637,999	$	—	$	1,331,643
Acquisitions		—		—		—		—
Balance at March 31, 2019	$	693,644	$	637,999	$	—	$	1,331,643

Schedule of intangible assets


	March 31,		December 31,
	2020		2019
Amortizing intangibles	$	66,954	$	66,949
Accumulated amortization		(52,021)		(49,128)
		14,933		17,821
Non-amortizing intangibles		1,038,174		1,034,284
	$	1,053,107	$	1,052,105

Schedule of future estimated amortization expense related to amortizing intangibles

The following is the future estimated amortization expense related to amortizing intangibles as of March 31, 2020:


2020 (excluding the three-months ended March 31, 2020)	$	4,783
2021		4,429
2022		4,404
2023		1,111
2024		13
2025 and thereafter		193
	$	14,933

ACCUMULATED OTHER COMPREHENSIVE LOSS (Tables)

3 Months Ended

Mar. 31, 2020

ACCUMULATED OTHER COMPREHENSIVE LOSS

Schedule of components of accumulated other comprehensive loss


			Unrealized
	Currency		(Gains) Losses
	Translation		on Available-for-
	Losses		Sale Securities		Total
Balance at December 31, 2019	$	32,581	$	(194)	$	32,387
Other comprehensive loss (income) before reclassifications		30,599		(304)		30,295
Amounts reclassified from accumulated other comprehensive loss (income)		—		—		—
Net current-period other comprehensive loss (income)		30,599		(304)		30,295
Balance at March 31, 2020	$	63,180	$	(498)	$	62,682


			Unrealized
	Currency		(Gains) Losses
	Translation		on Available-for-
	Losses		Sale Securities		Total
Balance at December 31, 2018	$	32,775	$	89	$	32,864
Other comprehensive loss (income) before reclassifications		1,381		(120)		1,261
Amounts reclassified from accumulated other comprehensive loss (income)		—		—		—
Net current-period other comprehensive loss (income)		1,381		(120)		1,261
Balance at March 31, 2019	$	34,156	$	(31)	$	34,125

STOCK-BASED COMPENSATION (Tables)

3 Months Ended

Mar. 31, 2020

STOCK-BASED COMPENSATION

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


	Three-Months Ended March 31,
	2020		2019
Dividend yield	0.0	%	0.0	%
Expected volatility	30.5	%	30.2	%
Risk-free interest rate	0.7	%	2.4	%
Expected term	5.8	years	6.0	years

Summary of activities with respect to its stock option plans


				Weighted-
		Weighted-		Average
		Average		Remaining
	Number of	Exercise		Contractual
	Shares (in	Price Per		Term (In	Aggregate
Options	thousands)	Share		years)	Intrinsic Value
Outstanding at January 1, 2020	14,941	$	42.88	6.3	$	308,884
Granted 01/01/20 - 03/31/20	1,027	$	62.45
Exercised	(372)	$	37.52
Cancelled or forfeited	(33)	$	52.50
Outstanding at March 31, 2020	15,563	$	44.28	6.4	$	204,418
Vested and expected to vest in the future at March 31, 2020	14,755	$	43.58	6.2	$	202,679
Exercisable at March 31, 2020	9,301	$	36.98	5.2	$	182,359

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


		Weighted
	Number of	Average
	Shares (in	Grant-Date
	thousands)	Fair Value
Non-vested at January 1, 2020	825	$	57.62
Granted 01/01/20 - 03/31/20¹	392	$	62.39
Vested	(271)	$	55.53
Forfeited/cancelled	(1)	$	59.67
Non-vested at March 31, 2020	945	$	60.21

INCOME TAXES (Tables)

3 Months Ended

Mar. 31, 2020

INCOME TAXES

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


	Gross Unrecognized Tax
	Benefits
Balance at December 31, 2019	$	2,993
Additions for tax positions related to the current year		—
Additions for tax positions related to the prior years		—
Decreases related to settlement with taxing authority		—
Balance at March 31, 2020	$	2,993

EARNINGS PER SHARE (Tables)

3 Months Ended

Mar. 31, 2020

EARNINGS PER SHARE

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

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


	Three-Months Ended
	March 31,
	2020	2019
Weighted-average shares outstanding:
Basic	536,061	542,768
Dilutive	4,457	5,505
Diluted	540,518	548,273

SEGMENT INFORMATION (Tables)

3 Months Ended

Mar. 31, 2020

SEGMENT INFORMATION

Schedule of net revenues and other financial information by segment


	Three-Months Ended
	March 31,
	2020		2019
Net sales:
Monster Energy® Drinks⁽¹⁾	$	992,454	$	870,384
Strategic Brands		64,538		70,286
Other		5,105		5,321
Corporate and unallocated		—		—
	$	1,062,097	$	945,991


	Three-Months Ended
	March 31,
	2020		2019
Operating Income:
Monster Energy®Drinks^{(1) (2)}	$	411,141	$	342,999
Strategic Brands		36,719		45,581
Other		787		902
Corporate and unallocated		(83,659)		(78,021)
	$	364,988	$	311,461


	Three-Months Ended
	March 31,
	2020		2019
Income before tax:
Monster Energy®Drinks^{(1) (2)}	$	411,178	$	343,016
Strategic Brands		36,719		45,577
Other		787		902
Corporate and unallocated		(82,824)		(75,292)
	$	365,860	$	314,203

(1)

Includes $10.6 million and $14.2 million for the three-months ended March 31, 2020 and 2019, respectively, related to the recognition of deferred revenue.

(2)

Includes $0.04 million and $10.7 million for the three-months ended March 31, 2020 and 2019, respectively, related to distributor termination costs.


	Three-Months Ended
	March 31,
	2020		2019
Depreciation and amortization:
Monster Energy®Drinks	$	9,651	$	9,798
Strategic Brands		2,030		1,963
Other		1,165		1,155
Corporate and unallocated		2,479		1,954
	$	15,325	$	14,870

Schedule of goodwill and other intangible assets for the reportable segments


	March 31,		December 31,
	2020		2019
Goodwill and other intangible assets:
Monster Energy®Drinks	$	1,391,507	$	1,384,940
Strategic Brands		979,963		984,393
Other		13,280		14,415
Corporate and unallocated		—		—
	$	2,384,750	$	2,383,748

RELATED PARTY TRANSACTIONS (Tables)

3 Months Ended

Mar. 31, 2020

RELATED PARTY TRANSACTIONS

Schedule of related party transactions


	March 31,		December 31,
	2020		2019
Accounts receivable, net	$	49,289	$	21,670
Accounts payable	$	(18,356)	$	(18,217)
Accrued promotional allowances	$	(6,007)	$	(5,321)
Accrued liabilities	$	(14,451)	$	—

REVENUE RECOGNITION - (Details)	3 Months Ended
REVENUE RECOGNITION - (Details)	Mar. 31, 2020 segment
REVENUE RECOGNITION
Number of operating segments	3
Number of reportable segments	3
Distribution agreement, revenue recognition period	20 years

REVENUE RECOGNITION - Disaggregation of Revenue (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2020	Mar. 31, 2019	Dec. 31, 2019
Total Net Sales	$ 1,062,097	$ 945,991
Contract Liabilities
Deferred revenue	323,200		$ 331,700
Deferred revenue recognized in net sales	10,600	14,200
U.S. and Canada
Total Net Sales	732,993	689,897
EMEA
Total Net Sales	185,117	146,545
Asia Pacific
Total Net Sales	91,221	68,681
Latin America and Caribbean
Total Net Sales	52,766	40,868
Monster Energy Drinks
Total Net Sales	992,454	870,384
Monster Energy Drinks \| U.S. and Canada
Total Net Sales	690,018	642,826
Monster Energy Drinks \| EMEA
Total Net Sales	164,771	124,637
Monster Energy Drinks \| Asia Pacific
Total Net Sales	85,904	62,456
Monster Energy Drinks \| Latin America and Caribbean
Total Net Sales	51,761	40,465
Strategic Brands
Total Net Sales	64,538	70,286
Strategic Brands \| U.S. and Canada
Total Net Sales	37,870	41,750
Strategic Brands \| EMEA
Total Net Sales	20,346	21,908
Strategic Brands \| Asia Pacific
Total Net Sales	5,317	6,225
Strategic Brands \| Latin America and Caribbean
Total Net Sales	1,005	403
Other
Total Net Sales	5,105	5,321
Other \| U.S. and Canada
Total Net Sales	$ 5,105	$ 5,321

LEASES - Lease Terms (Details)	3 Months Ended
LEASES - Lease Terms (Details)	Mar. 31, 2020
LEASES
Operating leases, options to extend	true
Finance leases, options to extend	true
Operating leases, options to terminate	true
Finance leases, options to terminate	true
Minimum
LEASES
Operating leases, lease term (in years)	1 year
Finance leases, lease term (in years)	1 year
Maximum
LEASES
Operating leases, lease term (in years)	14 years
Finance leases, lease term (in years)	14 years
Operating leases, renewal lease term (in years)	5 years
Finance leases, renewal lease term (in years)	5 years
Operating leases, termination period (in years)	1 year
Finance leases, termination period (in years)	1 year

LEASES - Lease Cost (Details) - USD ($) $ in Thousands	3 Months Ended
LEASES - Lease Cost (Details) - USD ($) $ in Thousands	Mar. 31, 2020	Mar. 31, 2019
LEASES
Operating lease cost	$ 1,445	$ 1,115
Short-term lease cost	707	1,082
Variable lease cost	162	165
Finance leases:
Amortization of ROU assets	148	80
Interest on lease liabilities	11	15
Finance lease cost	159	95
Total lease cost	$ 2,473	$ 2,457

LEASES - Supplemental cash flow information (Details) - USD ($) $ in Thousands	3 Months Ended	12 Months Ended
	Mar. 31, 2020	Dec. 31, 2019
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows from operating leases	$ 1,083	$ 889
Operating cash flows from finance leases	11	15
Financing cash flows from finance leases	733	393
ROU assets obtained in exchange for lease obligations:
Finance leases	1,465	415
Operating leases	$ 1,163	$ 26,429

LEASES - ROU assets for operating and finance leases (Details) - USD ($) $ in Thousands	Mar. 31, 2020	Dec. 31, 2019
ROU assets for operating and finance leases
Operating leases	$ 30,675	$ 31,342
Finance leases	3,569	2,632
Real Estate
ROU assets for operating and finance leases
Operating leases	30,291	30,926
Equipment
ROU assets for operating and finance leases
Operating leases	384	416
Finance leases	$ 3,569	$ 2,632

LEASES - Operating and finance leases liabilities (Details) - USD ($) $ in Thousands	Mar. 31, 2020	Dec. 31, 2019
Lessee, Lease, Description [Line Items]
Operating Leases	$ 28,114	$ 28,463
Finance Leases	2,209	1,485
Accrued liabilities
Lessee, Lease, Description [Line Items]
Operating Leases	2,830	2,812
Finance Leases	2,209	1,485
Other Liabilities
Lessee, Lease, Description [Line Items]
Operating Leases	$ 25,284	$ 25,651

LEASES - Weighted-average remaining lease term and weighted-average discount rate (Details)	Mar. 31, 2020	Dec. 31, 2019
LEASES
Weighted-average remaining lease term (years), Operating Leases	9 years 9 months 18 days	10 years 1 month 6 days
Weighted-average remaining lease term (years), Finance Leases	9 months 18 days	7 months 6 days
Weighted-average discount rate, Operating Leases	3.20%	3.10%
Weighted-average discount rate, Finance Leases	2.70%	2.90%

LEASES - Undiscounted future lease payments for operating and finance leases (Details) - USD ($) $ in Thousands	Mar. 31, 2020	Dec. 31, 2019
Operating Leases
2020 (excluding the three-months ended March 31, 2019)	$ 2,806
2021	3,450
2022	3,482
2023	3,068
2024	2,791
2025 and thereafter	17,692
Total lease payments	33,289
Less imputed interest	(5,175)
Total	28,114	$ 28,463
Finance Leases
2020 (excluding the three-months ended March 31, 2020)	1,938
2021	296
Total lease payments	2,234
Less imputed interest	(25)
Total	$ 2,209	$ 1,485

INVESTMENTS (Details) - USD ($) $ in Thousands	Mar. 31, 2020	Dec. 31, 2019
Available-for-sale
Amortized Cost	$ 246,937	$ 545,771
Gross Unrealized Holding Gains	643	285
Gross Unrealized Holding Losses	145	88
Fair Value	247,435	545,968
Continuous Unrealized Loss Position less than 12 Months	145	88
Short-term \| Commercial paper
Available-for-sale
Amortized Cost	57,107	83,478
Fair Value	57,107	83,478
Short-term \| Certificates of deposit
Available-for-sale
Amortized Cost		28,049
Fair Value		28,049
Short-term \| Municipal securities
Available-for-sale
Amortized Cost	95,819	147,983
Gross Unrealized Holding Gains	114	145
Gross Unrealized Holding Losses	113	20
Fair Value	95,820	148,108
Continuous Unrealized Loss Position less than 12 Months	113	20
Short-term \| U.S. government agency securities
Available-for-sale
Amortized Cost	21,441	40,620
Gross Unrealized Holding Gains	62	5
Gross Unrealized Holding Losses		35
Fair Value	21,503	40,590
Continuous Unrealized Loss Position less than 12 Months		35
Short-term \| U.S. treasuries
Available-for-sale
Amortized Cost	46,055	211,055
Gross Unrealized Holding Gains	399	134
Gross Unrealized Holding Losses		31
Fair Value	46,454	211,158
Continuous Unrealized Loss Position less than 12 Months		31
Short-term \| Variable rate demand notes
Available-for-sale
Amortized Cost	12,628	21,680
Fair Value	12,628	21,680
Long-term \| Municipal securities
Available-for-sale
Amortized Cost	6,292	1,562
Gross Unrealized Holding Gains	4
Gross Unrealized Holding Losses	32	1
Fair Value	6,264	1,561
Continuous Unrealized Loss Position less than 12 Months	32	1
Long-term \| U.S. government agency securities
Available-for-sale
Amortized Cost	3,512	5,267
Gross Unrealized Holding Gains	10
Gross Unrealized Holding Losses		1
Fair Value	3,522	5,266
Continuous Unrealized Loss Position less than 12 Months		1
Long-term \| U.S. treasuries
Available-for-sale
Amortized Cost	4,083	6,077
Gross Unrealized Holding Gains	54	1
Fair Value	$ 4,137	$ 6,078

INVESTMENTS - Maturity Period (Details) - USD ($) $ in Thousands	Mar. 31, 2020	Dec. 31, 2019
Investments
Amortized Cost	$ 246,937	$ 545,771
Fair Value	247,435	545,968
Commercial paper \| Less than 1 year
Investments
Amortized Cost	57,107	83,478
Fair Value	57,107	83,478
Municipal securities \| Less than 1 year
Investments
Amortized Cost	95,819	147,983
Fair Value	95,820	148,108
Municipal securities \| Due 1 - 10 years
Investments
Amortized Cost	6,292	1,562
Fair Value	6,264	1,561
U.S. government agency securities \| Less than 1 year
Investments
Amortized Cost	21,441	40,620
Fair Value	21,503	40,590
U.S. government agency securities \| Due 1 - 10 years
Investments
Amortized Cost	3,512	5,267
Fair Value	3,522	5,266
Certificates of deposit \| Less than 1 year
Investments
Amortized Cost		28,049
Fair Value	0	28,049
U.S. treasuries \| Less than 1 year
Investments
Amortized Cost	46,055	211,055
Fair Value	46,454	211,158
U.S. treasuries \| Due 1 - 10 years
Investments
Amortized Cost	4,083	6,077
Fair Value	4,137	6,078
Variable rate demand notes \| Due 1 - 10 years
Investments
Amortized Cost	3,911	3,905
Fair Value	3,911	3,905
Variable rate demand notes \| Due 11 - 20 years
Investments
Amortized Cost	3,485	8,886
Fair Value	3,485	8,886
Variable rate demand notes \| Due 21 - 30 years
Investments
Amortized Cost	3,217	6,885
Fair Value	3,217	6,885
Variable rate demand notes \| Due 31 - 40 years
Investments
Amortized Cost	2,015	2,004
Fair Value	$ 2,015	$ 2,004

FAIR VALUE OF CERTAIN FINANCIAL ASSETS AND LIABILITIES (Details) - USD ($) $ in Thousands	3 Months Ended	12 Months Ended
	Mar. 31, 2020	Dec. 31, 2019	Mar. 31, 2019	Dec. 31, 2018
Fair value of certain financial assets and liabilities
Cash and cash equivalents	$ 701,836	$ 797,957	$ 618,344	$ 637,513
Short-term investments	233,513	533,063
Investments	13,922	12,905
Asset transfers between Level 1 and Level 2 measurements	0	0
Total fair value
Fair value of certain financial assets and liabilities
Cash	497,556	518,178
Foreign currency derivatives	(301)
Assets measured at fair value	948,970	1,343,238
Cash and cash equivalents	701,836	797,957
Short-term investments	233,513	533,063
Accounts receivable, net	203	329
Investments	13,922	12,905
Accrued liabilities	(504)	(1,016)
Foreign currency derivatives		(687)
Total fair value \| Money market funds
Fair value of certain financial assets and liabilities
Assets measured at fair value	194,560	191,131
Total fair value \| Certificates of deposit
Fair value of certain financial assets and liabilities
Assets measured at fair value	1,607	28,049
Total fair value \| Commercial paper
Fair value of certain financial assets and liabilities
Assets measured at fair value	57,107	96,867
Total fair value \| Variable rate demand notes
Fair value of certain financial assets and liabilities
Assets measured at fair value	12,628	21,680
Total fair value \| Municipal securities
Fair value of certain financial assets and liabilities
Assets measured at fair value	106,292	167,224
Total fair value \| U.S. government agency securities
Fair value of certain financial assets and liabilities
Assets measured at fair value	28,931	73,634
Total fair value \| U.S. treasuries
Fair value of certain financial assets and liabilities
Assets measured at fair value	50,590	247,162
Level 1
Fair value of certain financial assets and liabilities
Cash	497,556	518,178
Assets measured at fair value	692,116	709,309
Cash and cash equivalents	692,116	709,309
Level 1 \| Money market funds
Fair value of certain financial assets and liabilities
Assets measured at fair value	194,560	191,131
Level 2
Fair value of certain financial assets and liabilities
Foreign currency derivatives	(301)
Assets measured at fair value	256,854	633,929
Cash and cash equivalents	9,720	88,648
Short-term investments	233,513	533,063
Accounts receivable, net	203	329
Investments	13,922	12,905
Accrued liabilities	(504)	(1,016)
Foreign currency derivatives		(687)
Level 2 \| Certificates of deposit
Fair value of certain financial assets and liabilities
Assets measured at fair value	1,607	28,049
Level 2 \| Commercial paper
Fair value of certain financial assets and liabilities
Assets measured at fair value	57,107	96,867
Level 2 \| Variable rate demand notes
Fair value of certain financial assets and liabilities
Assets measured at fair value	12,628	21,680
Level 2 \| Municipal securities
Fair value of certain financial assets and liabilities
Assets measured at fair value	106,292	167,224
Level 2 \| U.S. government agency securities
Fair value of certain financial assets and liabilities
Assets measured at fair value	28,931	73,634
Level 2 \| U.S. treasuries
Fair value of certain financial assets and liabilities
Assets measured at fair value	$ 50,590	$ 247,162

DERIVATIVE INSTRUMENTS AND HEDGING ACTIVITIES - Notional Amount and Fair Value (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2020	Dec. 31, 2019
Foreign currency exchange contracts \| Maximum
Derivative Instruments and Hedging Activities
Term of derivative instrument	1 month
Not designated as hedging instruments \| Accounts receivable, net \| Receive RSD/pay USD
Derivative Instruments and Hedging Activities
Notional amount, Assets		$ 9,018
Fair Value, Assets		59
Not designated as hedging instruments \| Accounts receivable, net \| Receive NOK/pay USD
Derivative Instruments and Hedging Activities
Notional amount, Assets		2,122
Fair Value, Assets		17
Not designated as hedging instruments \| Accounts receivable, net \| Receive USD/pay SGD
Derivative Instruments and Hedging Activities
Notional amount, Assets		1,555
Fair Value, Assets		7
Not designated as hedging instruments \| Accounts receivable, net \| Receive USD/pay GBP
Derivative Instruments and Hedging Activities
Notional amount, Assets	$ 46,342
Fair Value, Assets	62
Not designated as hedging instruments \| Accounts receivable, net \| Receive USD/pay AUD
Derivative Instruments and Hedging Activities
Notional amount, Assets	14,276
Fair Value, Assets	60
Not designated as hedging instruments \| Accounts receivable, net \| Receive USD/pay NZD
Derivative Instruments and Hedging Activities
Notional amount, Assets	1,812
Fair Value, Assets	35
Not designated as hedging instruments \| Accounts receivable, net \| Receive USD/pay COP
Derivative Instruments and Hedging Activities
Notional amount, Assets	4,174
Fair Value, Assets	14
Not designated as hedging instruments \| Accounts receivable, net \| Receive USD/pay SEK
Derivative Instruments and Hedging Activities
Notional amount, Assets	2,160
Fair Value, Assets	12
Not designated as hedging instruments \| Accounts receivable, net \| Receive USD/pay ZAR
Derivative Instruments and Hedging Activities
Notional amount, Assets	910
Fair Value, Assets	9
Not designated as hedging instruments \| Accounts receivable, net \| Receive USD/ pay NOK
Derivative Instruments and Hedging Activities
Notional amount, Assets	1,008
Fair Value, Assets	6
Not designated as hedging instruments \| Accounts receivable, net \| Receive USD/pay DKK
Derivative Instruments and Hedging Activities
Notional amount, Assets	1,304
Fair Value, Assets	4
Not designated as hedging instruments \| Accounts receivable, net \| Receive SGD/pay USD
Derivative Instruments and Hedging Activities
Notional amount, Assets	914
Fair Value, Assets	1
Not designated as hedging instruments \| Accounts receivable, net \| Receive EUR/pay USD
Derivative Instruments and Hedging Activities
Notional amount, Assets		26,731
Fair Value, Assets		246
Not designated as hedging instruments \| Accrued liabilities \| Receive RSD/pay USD
Derivative Instruments and Hedging Activities
Notional amount, Liabilities	11,530
Fair Value, Liabilities	(85)
Not designated as hedging instruments \| Accrued liabilities \| Receive USD/pay GBP
Derivative Instruments and Hedging Activities
Notional amount, Liabilities		38,406
Fair Value, Liabilities		(695)
Not designated as hedging instruments \| Accrued liabilities \| Receive USD/pay AUD
Derivative Instruments and Hedging Activities
Notional amount, Liabilities		12,819
Fair Value, Liabilities		(172)
Not designated as hedging instruments \| Accrued liabilities \| Receive USD/pay NZD
Derivative Instruments and Hedging Activities
Notional amount, Liabilities		3,071
Fair Value, Liabilities		(33)
Not designated as hedging instruments \| Accrued liabilities \| Receive USD/pay COP
Derivative Instruments and Hedging Activities
Notional amount, Liabilities		3,793
Fair Value, Liabilities		(18)
Not designated as hedging instruments \| Accrued liabilities \| Receive USD/pay ZAR
Derivative Instruments and Hedging Activities
Notional amount, Liabilities		3,349
Fair Value, Liabilities		(32)
Not designated as hedging instruments \| Accrued liabilities \| Receive USD/pay DKK
Derivative Instruments and Hedging Activities
Notional amount, Liabilities		1,283
Fair Value, Liabilities		(11)
Not designated as hedging instruments \| Accrued liabilities \| Receive EUR/pay USD
Derivative Instruments and Hedging Activities
Notional amount, Liabilities	34,987
Fair Value, Liabilities	(272)
Not designated as hedging instruments \| Accrued liabilities \| Receive USD/pay RUB
Derivative Instruments and Hedging Activities
Notional amount, Liabilities	11,840	12,777
Fair Value, Liabilities	$ (147)	$ (55)

DERIVATIVE INSTRUMENTS AND HEDGING ACTIVITIES - Nonhedging Designation (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2020	Mar. 31, 2019
Not designated as hedging instruments \| Foreign currency exchange contracts \| Interest and other income, net
Net gains (loss) on derivative instruments
Amount of gain (loss) recognized in income on derivatives	$ 6,292	$ (1,087)

INVENTORIES (Details) - USD ($) $ in Thousands	Mar. 31, 2020	Dec. 31, 2019
INVENTORIES
Raw materials	$ 140,990	$ 134,885
Finished goods	211,315	225,846
Inventories	$ 352,305	$ 360,731

PROPERTY AND EQUIPMENT, Net (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2020	Mar. 31, 2019	Dec. 31, 2019
Property and equipment, net
Property and equipment, gross	$ 509,274		$ 506,074
Less: accumulated depreciation and amortization	(213,704)		(207,434)
Property and equipment, net	295,570		298,640
Total depreciation and amortization expense	12,400	$ 12,000
Land
Property and equipment, net
Property and equipment, gross	78,275		78,275
Leasehold improvements
Property and equipment, net
Property and equipment, gross	11,517		10,417
Furniture and fixtures
Property and equipment, net
Property and equipment, gross	8,272		8,426
Office and computer equipment
Property and equipment, net
Property and equipment, gross	22,578		22,766
Computer software
Property and equipment, net
Property and equipment, gross	4,788		4,450
Equipment
Property and equipment, net
Property and equipment, gross	216,125		214,293
Buildings
Property and equipment, net
Property and equipment, gross	126,755		126,338
Vehicles
Property and equipment, net
Property and equipment, gross	$ 40,964		$ 41,109

GOODWILL AND OTHER INTANGIBLE ASSETS - Goodwill (Details) - USD ($) $ in Thousands	Mar. 31, 2020	Dec. 31, 2019	Mar. 31, 2019
Goodwill
Goodwill, Beginning Balance	$ 1,331,643	$ 1,331,643	$ 1,331,643
Goodwill, Ending Balance	1,331,643	1,331,643	1,331,643
Monster Energy Drinks
Goodwill
Goodwill, Beginning Balance	693,644	693,644	693,644
Goodwill, Ending Balance	693,644	693,644	693,644
Strategic Brands
Goodwill
Goodwill, Beginning Balance	637,999	637,999	637,999
Goodwill, Ending Balance	$ 637,999	$ 637,999	$ 637,999

GOODWILL AND OTHER INTANGIBLE ASSETS - Intangible assets (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2020	Mar. 31, 2019	Dec. 31, 2019
Intangible assets
Amortizing intangibles	$ 66,954		$ 66,949
Accumulated amortization	(52,021)		(49,128)
Amortizing intangibles, net	14,933		17,821
Non-amortizing intangibles	1,038,174		1,034,284
Intangibles, net	1,053,107		$ 1,052,105
Amortization expense	2,900	$ 2,900
Impairment charge of Strategic Brand trademark	$ 3,000
Minimum
Intangible assets
Useful life of intangible assets	5 years
Maximum
Intangible assets
Useful life of intangible assets	7 years

GOODWILL AND OTHER INTANGIBLE ASSETS - Amortization expense (Details) - USD ($) $ in Thousands	Mar. 31, 2020	Dec. 31, 2019
Future estimated amortization expense related to amortizing intangibles
2020 (excluding the three-months ended March 31, 2020)	$ 4,783
2021	4,429
2022	4,404
2023	1,111
2024	13
2025 and thereafter	193
Amortizing intangibles, net	$ 14,933	$ 17,821

DISTRIBUTION AGREEMENTS (Details) - USD ($) $ in Thousands	3 Months Ended
DISTRIBUTION AGREEMENTS (Details) - USD ($) $ in Thousands	Mar. 31, 2020	Mar. 31, 2019
DISTRIBUTION AGREEMENTS
Termination costs	$ 40	$ 10,700
Distribution agreement (in years)	20 years
Revenue recognized	$ 10,600	$ 14,200

COMMITMENTS AND CONTINGENCIES - Purchase Commitments (Details) - USD ($) $ in Millions	3 Months Ended
	Mar. 31, 2020	Feb. 28, 2018	Jan. 31, 2018
Purchase Commitments
Contractual Obligation	$ 200.5
Line of credit
Purchase Commitments
Maximum borrowing capacity		$ 15.0	$ 9.0
Interest rate (as a percent)	5.50%
Amount outstanding	$ 0.0
Raw materials
Purchase Commitments
Purchase commitments	$ 70.5
Obligation term ( in years)	1 year

COMMITMENTS AND CONTINGENCIES - Litigation (Details) $ in Millions	Mar. 31, 2020 USD ($)
COMMITMENTS AND CONTINGENCIES
Accrued loss contingencies	$ 15.6

ACCUMULATED OTHER COMPREHENSIVE LOSS (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2020	Mar. 31, 2019
Components of accumulated other comprehensive loss:
Balance at the beginning of the period	$ 32,387	$ 32,864
Other comprehensive loss (income) before reclassifications	30,295	1,261
Net current-period other comprehensive loss (income)	30,295	1,261
Balance at the end of the period	62,682	34,125
Currency Translation Losses
Components of accumulated other comprehensive loss:
Balance at the beginning of the period	32,581	32,775
Other comprehensive loss (income) before reclassifications	30,599	1,381
Net current-period other comprehensive loss (income)	30,599	1,381
Balance at the end of the period	63,180	34,156
Unrealized (Gains) Losses on Available-for-Sale Securities
Components of accumulated other comprehensive loss:
Balance at the beginning of the period	(194)	89
Other comprehensive loss (income) before reclassifications	(304)	(120)
Net current-period other comprehensive loss (income)	(304)	(120)
Balance at the end of the period	$ (498)	$ (31)

TREASURY STOCK (Details) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended
	Mar. 31, 2020	Mar. 31, 2019	Mar. 13, 2020	Nov. 06, 2019	Feb. 26, 2019
Treasury Stock Purchase
Number of shares repurchased of common stock from employees in lieu of cash or withholding taxes due	11,007
Common stock repurchased	$ 579,948	$ 222,792
Cash payment for repurchase of common stock from employees in lieu of cash or withholding taxes due	$ 600
February 2019 Repurchase Plan
Treasury Stock Purchase
Share repurchase program, authorized amount					$ 500,000
Common stock repurchased (in shares)	600,000
Average purchase price (in dollars per share)	$ 58.16
Common stock repurchased	$ 36,600
November 2019 Repurchase Plan
Treasury Stock Purchase
Common stock repurchased (in shares)	9.1
Average purchase price (in dollars per share)	$ 54.86
Common stock repurchased	$ 499,900
November 2019 Repurchase Plan \| Maximum
Treasury Stock Purchase
Share repurchase program, authorized amount				$ 500,000
March 2020 Repurchase Plan
Treasury Stock Purchase
Share repurchase program, authorized amount			$ 500,000
Common stock repurchased (in shares)	800,000
Average purchase price (in dollars per share)	$ 57.01
Common stock repurchased	$ 42,900
Share repurchase program, authorized remaining amount	$ 441,500

STOCK-BASED COMPENSATION - Plans (Details) $ in Millions	3 Months Ended
STOCK-BASED COMPENSATION - Plans (Details) $ in Millions	Mar. 31, 2020 USD ($) plan	Mar. 31, 2019 USD ($)
STOCK-BASED COMPENSATION
Stock-based compensation plans \| plan	2
Compensation expense on share-based plans	$ 17.1	$ 15.3
Excess tax benefit realized for tax deductions from non-qualified stock option exercises and disqualifying dispositions of incentive stock options	$ 1.7	$ 22.4

STOCK-BASED COMPENSATION - Fair Value Assumptions (Details) - Stock Options - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands	3 Months Ended		12 Months Ended
	Mar. 31, 2020	Mar. 31, 2019	Dec. 31, 2019
Weighted-average assumptions used to estimate the fair value of options granted
Dividend yield (as a percent)	0.00%	0.00%
Expected volatility (as a percent)	30.50%	30.20%
Risk-free interest rate (as a percent)	0.70%	2.40%
Expected term	5 years 9 months 18 days	6 years
Stock options, Number of Shares
Balance at the beginning of the period (in shares)	14,941
Granted (in shares)	1,027
Exercised (in shares)	(372)
Cancelled or forfeited (in shares)	(33)
Balance at the end of the period (in shares)	15,563		14,941
Vested and expected to vest in the future at the end of the period (in shares)	14,755
Exercisable at the end of the period (in shares)	9,301
Stock options, Weighted-Average Exercise Price Per Share
Balance at the beginning of the period (in dollars per share)	$ 42.88
Granted (in dollars per share)	62.45
Exercised (in dollars per share)	37.52
Cancelled or forfeited (in dollars per share)	52.50
Balance at the end of the period (in dollars per share)	44.28		$ 42.88
Vested and expected to vest in the future at the end of the period (in dollars per share)	43.58
Exercisable at the end of the period (in dollars per share)	$ 36.98
Weighted-Average Remaining Contractual Term (in years)
Weighted-Average Remaining Contractual Terms (in years)	6 years 4 months 24 days		6 years 3 months 18 days
Vested and expected to vest in the future at the end of the period	6 years 2 months 12 days
Exercisable at the end of the period	5 years 2 months 12 days
Aggregate Intrinsic Value
Balance at the beginning of the period	$ 308,884
Balance at the end of the period	204,418		$ 308,884
Vested and expected to vest in the future at the end of the period	202,679
Exercisable at the end of the period	$ 182,359

STOCK-BASED COMPENSATION - Equity Awards (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands	3 Months Ended
	Mar. 31, 2020	Mar. 31, 2019
Compensation cost charged against income
Total employee and non-employee share-based compensation expense included in income, before income tax	$ 17,098	$ 15,324
Stock Options
STOCK-BASED COMPENSATION
Weighted-average grant-date fair value of options granted (in dollars per share)	$ 18.78	$ 20.30
Total intrinsic value of options exercised	$ 10,900	$ 178,500
Cash received from option exercises	14,000	$ 35,200
Total unrecognized compensation expense related to non-vested shares granted to employees	$ 86,800
Cost expected to be recognized over a weighted-average period	2 years 8 months 12 days
Stock units expected to vest (in shares)	14,755
Restricted Stock Units and Performance Share Units
STOCK-BASED COMPENSATION
Total unrecognized compensation expense related to non-vested shares granted to employees	$ 47,200
Cost expected to be recognized over a weighted-average period	2 years 10 months 24 days
Stock units expected to vest (in shares)	800
Number of Shares
Non-vested at the beginning of the period (in shares)	825
Granted (in shares)	392
Vested (in shares)	(271)
Forfeited/cancelled (in shares)	(1)
Non-vested at the end of the period (in shares)	945
Weighted Average Grant-Date Fair Value
Non-vested at the beginning of the period (in dollars per share)	$ 57.62
Granted (in dollars per share)	62.39	$ 59.66
Vested (in dollars per share)	55.53
Forfeited/cancelled (in dollars per share)	59.67
Non-vested at the end of the period (in dollars per share)	$ 60.21
Performance Share Units
STOCK-BASED COMPENSATION
Percentage of Target Performance Level	100.00%
Number of Shares
Granted (in shares)		0
Performance Share Units \| Maximum
STOCK-BASED COMPENSATION
Percentage of Target Performance Level	200.00%
Performance Share Units \| Minimum
STOCK-BASED COMPENSATION
Percentage of Target Performance Level	0.00%

INCOME TAXES (Details) $ in Thousands	3 Months Ended
INCOME TAXES (Details) $ in Thousands	Mar. 31, 2020 USD ($)
Gross unrecognized tax benefits, roll forward
Balance at the beginning of the period	$ 2,993
Additions for tax positions related to the current year	0
Additions for tax positions related to the prior years	0
Decreases related to settlement with taxing authority	0
Balance at the end of the period	2,993
Accrued interest and penalties related to unrecognized tax benefits	$ 400

EARNINGS PER SHARE (Details) - shares shares in Thousands	3 Months Ended
EARNINGS PER SHARE (Details) - shares shares in Thousands	Mar. 31, 2020	Mar. 31, 2019
Weighted-average shares outstanding:
Basic	536,061	542,768
Dilutive securities	4,457	5,505
Diluted	540,518	548,273
Options and awards outstanding excluded from the calculations as their effect would have been antidilutive (in shares)	4,800	4,300

SEGMENT INFORMATION - Net Revenues (Details)	3 Months Ended
SEGMENT INFORMATION - Net Revenues (Details)	Mar. 31, 2020 USD ($) segment	Mar. 31, 2019 USD ($)
Segment information
Number of reportable segments \| segment	3
Number of operating segments \| segment	3
Total Net Sales	$ 1,062,097,000	$ 945,991,000
Operating income	364,988,000	311,461,000
Income before tax	365,860,000	314,203,000
Recognition of deferred revenue	10,600,000	14,200,000
Corporate and unallocated
Segment information
Operating income	(83,659,000)	(78,021,000)
Income before tax	(82,824,000)	(75,292,000)
Monster Energy Drinks
Segment information
Total Net Sales	992,454,000	870,384,000
Monster Energy Drinks \| Operating segment
Segment information
Total Net Sales	992,454,000	870,384,000
Operating income	411,141,000	342,999,000
Income before tax	411,178,000	343,016,000
Recognition of deferred revenue	10,600,000	14,200,000
Distribution Agreements Termination Cost	40,000	10,700,000
Strategic Brands
Segment information
Total Net Sales	64,538,000	70,286,000
Strategic Brands \| Operating segment
Segment information
Total Net Sales	64,538,000	70,286,000
Operating income	36,719,000	45,581,000
Income before tax	36,719,000	45,577,000
Other
Segment information
Total Net Sales	5,105,000	5,321,000
Other \| Operating segment
Segment information
Total Net Sales	5,105,000	5,321,000
Operating income	787,000	902,000
Income before tax	$ 787,000	$ 902,000

SEGMENT INFORMATION - Depreciation and Amortization (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2020	Mar. 31, 2019
Segment information
Depreciation and amortization	$ 16,546	$ 14,870
Depreciation and amortization	15,325
Corporate and unallocated
Segment information
Depreciation and amortization	2,479	1,954
Monster Energy Drinks \| Operating segment
Segment information
Depreciation and amortization	9,651	9,798
Strategic Brands \| Operating segment
Segment information
Depreciation and amortization	2,030	1,963
Other \| Operating segment
Segment information
Depreciation and amortization	$ 1,165	$ 1,155

SEGMENT INFORMATION - Expenses (Details) - USD ($) $ in Millions	3 Months Ended
	Mar. 31, 2020	Mar. 31, 2019
Segment information
Stock-based compensation expense	$ 17.1	$ 15.3
Corporate and unallocated
Segment information
Payroll costs	55.3	50.4
Stock-based compensation expense	17.1	15.3
Professional service expenses	16.3	17.5
Other operating expenses	$ 12.1	$ 10.1

SEGMENT INFORMATION - Concentration Risk (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2020	Mar. 31, 2019
Segment information
Total Net Sales	$ 1,062,097	$ 945,991
Net Sales \| Outside United States
Segment information
Percentage of net sales	34.00%	30.00%
Total Net Sales	$ 356,800	$ 284,100
Coca-Cola Consolidated, Inc \| Net Sales \| Customer concentration
Segment information
Percentage of net sales	12.00%	13.00%
Reyes Coca-Cola Bottling \| Net Sales \| Customer concentration
Segment information
Percentage of net sales	11.00%	12.00%
Coca-Cola European Partners \| Net Sales \| Customer concentration
Segment information
Percentage of net sales	10.00%	9.00%

SEGMENT INFORMATION - Goodwill and other intangible assets (Details) - USD ($) $ in Thousands	Mar. 31, 2020	Dec. 31, 2019
Segment information
Goodwill and other intangible assets	$ 2,384,750	$ 2,383,748
Monster Energy Drinks \| Operating segment
Segment information
Goodwill and other intangible assets	1,391,507	1,384,940
Strategic Brands \| Operating segment
Segment information
Goodwill and other intangible assets	979,963	984,393
Other \| Operating segment
Segment information
Goodwill and other intangible assets	$ 13,280	$ 14,415

RELATED PARTY TRANSACTIONS (Details) $ in Thousands	3 Months Ended
RELATED PARTY TRANSACTIONS (Details) $ in Thousands	Mar. 31, 2020 USD ($) director	Mar. 31, 2019 USD ($)	Dec. 31, 2019 USD ($)	Dec. 31, 2018 USD ($)
Related party transactions
Capital contribution	$ 0
Equity loss	$ (3,870,946)	$ (3,698,820)	$ (4,171,281)	$ (3,610,901)
TCCC
Related party transactions
Related Party Ownership Interest (as a percent)	19.40%
Net sales	$ 19,500	17,300
Purchases from related party	4,200	6,600
TCCC Subsidiaries and TCCC Related parties
Related party transactions
Commission expenses	10,900	12,100
TCCC Related parties and TCCC Independent Bottlers \| Operating expense
Related party transactions
Commission expenses	4,400	3,800
TCCC Subsidiaries
Related party transactions
Accounts receivable, net	49,289		21,670
Accounts payable	(18,356)		(18,217)
Accrued promotional allowances	(6,007)		$ (5,321)
Accrued liabilities	(14,451)
TCCC Subsidiaries \| Monster Energy Drinks
Related party transactions
Contract manufacturing expenses	$ 4,000	4,500
Principal owners
Related party transactions
Number of directors who are principal owners of a company that provides promotional materials \| director	1
Expenses incurred in connection with materials or services provided by a related party	$ 700	$ 300
Director
Related party transactions
Ownership percentage				50.00%
Partnership contribution	1,800			$ 1,900
Equity loss	$ 30

SUBSEQUENT EVENTS (Details) $ in Millions	Apr. 30, 2020 USD ($)
Subsequent event
Subsequent Events
Agreed amount for acquisition of building	$ 10.0