0001104659-22-028182 | 10-K | XBRL Viewer

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CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2021	Dec. 31, 2020	Dec. 31, 2019
CASH FLOWS FROM OPERATING ACTIVITIES:
Net income	$ 1,377,475	$ 1,409,594	$ 1,107,835
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization	50,155	57,030	60,727
Non-cash lease expense	4,107	3,943	4,087
Gain on disposal of property and equipment	(1,013)	(350)	(252)
Loss on impairment of intangibles	0	8,700	0
Stock-based compensation	70,483	70,289	63,356
Deferred income taxes	16,429	(156,873)	1,263
Effect on cash of changes in operating assets and liabilities:
Accounts receivable	(254,228)	(119,672)	(59,941)
Inventories	(277,793)	30,304	(85,222)
Prepaid expenses and other assets	(29,341)	1,024	(13,774)
Prepaid income taxes	(10,919)	5,516	9,481
Accounts payable	114,297	18,696	28,832
Accrued liabilities	71,586	26,113	(14,018)
Accrued promotional allowances	31,498	13,762	21,943
Accrued compensation	7,950	7,501	7,228
Income taxes payable	7,221	10,422	8,105
Other liabilities	492	(356)	(1,030)
Deferred revenue	(22,658)	(21,480)	(24,858)
Net cash provided by operating activities	1,155,741	1,364,163	1,113,762
CASH FLOWS FROM INVESTING ACTIVITIES:
Sales of available-for-sale investments	1,488,599	920,196	851,436
Proceeds from sale of property and equipment	1,328	993	1,239
Purchases of available-for-sale investments	(2,413,143)	(1,299,981)	(1,067,736)
Purchases of property and equipment	(43,868)	(48,722)	(101,661)
Additions to intangibles	(13,585)	(18,550)	(8,737)
Increase in other assets	(11,353)	(26,423)	(1,265)
Net cash used in investing activities	(992,022)	(472,487)	(326,724)
CASH FLOWS FROM FINANCING ACTIVITIES:
Borrowings (payments) on debt	2,928	(3,086)	(13,569)
Issuance of common stock	45,723	72,936	92,363
Purchases of common stock held in treasury	(13,830)	(595,918)	(707,300)
Net cash provided by (used in) financing activities	34,821	(526,068)	(628,506)
Effect of exchange rate changes on cash and cash equivalents	(52,491)	16,848	1,912
NET INCREASE IN CASH AND CASH EQUIVALENTS	146,049	382,456	160,444
CASH AND CASH EQUIVALENTS, beginning of year	1,180,413	797,957	637,513
CASH AND CASH EQUIVALENTS, end of year	1,326,462	1,180,413	797,957
Cash paid during the period for:
Interest	134	44	320
Income taxes	$ 420,521	$ 355,509	$ 293,810

DERIVATIVE INSTRUMENTS AND HEDGING ACTIVITIES - Notional Amount and Fair Value (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2021	Dec. 31, 2020
Foreign currency exchange contracts \| Maximum
Derivative Instruments and Hedging Activities
Term of derivative instrument	3 months
Derivatives not designated as hedging instruments \| Accounts receivables, net \| Receive SGD/pay USD
Derivative Instruments and Hedging Activities
Notional amount, Assets	$ 16,544	$ 18,713
Fair Value, Assets	297	41
Derivatives not designated as hedging instruments \| Accounts receivables, net \| Receive RSD/pay USD
Derivative Instruments and Hedging Activities
Notional amount, Assets	9,837	10,127
Fair Value, Assets	46	28
Derivatives not designated as hedging instruments \| Accounts receivables, net \| Receive USD/pay RUB
Derivative Instruments and Hedging Activities
Notional amount, Assets	7,175
Fair Value, Assets	15
Derivatives not designated as hedging instruments \| Accounts receivables, net \| Receive USD/pay COP
Derivative Instruments and Hedging Activities
Notional amount, Assets	9,754
Fair Value, Assets	296
Derivatives not designated as hedging instruments \| Accrued liabilities \| Receive EUR/pay USD
Derivative Instruments and Hedging Activities
Notional amount, Liabilities		1,298,899
Fair Value, Liabilities		(1,768)
Derivatives not designated as hedging instruments \| Accrued liabilities \| Receive NOK/pay USD
Derivative Instruments and Hedging Activities
Notional amount, Liabilities		4,411
Fair Value, Liabilities		(18)
Derivatives not designated as hedging instruments \| Accrued liabilities \| Receive USD/pay GBP
Derivative Instruments and Hedging Activities
Notional amount, Liabilities	29,929	35,256
Fair Value, Liabilities	(666)	(416)
Derivatives not designated as hedging instruments \| Accrued liabilities \| Receive USD/pay EUR
Derivative Instruments and Hedging Activities
Notional amount, Liabilities	3,045
Fair Value, Liabilities	(29)
Derivatives not designated as hedging instruments \| Accrued liabilities \| Receive USD/pay RUB
Derivative Instruments and Hedging Activities
Notional amount, Liabilities		7,780
Fair Value, Liabilities		(40)
Derivatives not designated as hedging instruments \| Accrued liabilities \| Receive USD/pay AUD
Derivative Instruments and Hedging Activities
Notional amount, Liabilities	2,602	8,508
Fair Value, Liabilities	(88)	(130)
Derivatives not designated as hedging instruments \| Accrued liabilities \| Receive USD/pay CNY
Derivative Instruments and Hedging Activities
Notional amount, Liabilities	12,230	12,344
Fair Value, Liabilities	(74)	(50)
Derivatives not designated as hedging instruments \| Accrued liabilities \| Receive USD/pay COP
Derivative Instruments and Hedging Activities
Notional amount, Liabilities		5,436
Fair Value, Liabilities		(93)
Derivatives not designated as hedging instruments \| Accrued liabilities \| Receive USD/pay ZAR
Derivative Instruments and Hedging Activities
Notional amount, Liabilities	4,140	2,403
Fair Value, Liabilities	(21)	(106)
Derivatives not designated as hedging instruments \| Accrued liabilities \| Receive USD/pay DKK
Derivative Instruments and Hedging Activities
Notional amount, Liabilities	1,461	3,151
Fair Value, Liabilities	(9)	(3)
Derivatives not designated as hedging instruments \| Accrued liabilities \| Receive USD/pay NZD
Derivative Instruments and Hedging Activities
Notional amount, Liabilities	2,693	2,290
Fair Value, Liabilities	$ (45)	(13)
Derivatives not designated as hedging instruments \| Accrued liabilities \| Receive SEK/pay USD
Derivative Instruments and Hedging Activities
Notional amount, Liabilities		2,275
Fair Value, Liabilities		$ (10)

COMMITMENTS AND CONTINGENCIES - Litigation (Details) $ in Thousands	Dec. 31, 2021 USD ($)
COMMITMENTS AND CONTINGENCIES
Loss contingencies	$ 0

CONSOLIDATED STATEMENTS OF STOCKHOLDERS EQUITY - USD ($) shares in Thousands, $ in Thousands	Common Stock	Additional Paid-in Capital	Retained Earnings	Accumulated Other Comprehensive Income (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		63,356				63,356
Exercise of stock options	$ 27	92,336				92,363
Exercise of stock options (in shares)	5,490
Unrealized gain, net on available-for-sale securities				283		283
Adjustment to excess tax benefits from prior periods		3,649				3,649
Repurchase of common stock					$ (707,300)	(707,300)
Repurchase of common stock (in shares)					(12,468)
Foreign currency translation				194		194
Net income			1,107,835			1,107,835
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		67,546				67,546
Exercise of stock options	$ 11	72,925				72,936
Exercise of stock options (in shares)	2,202
Unrealized gain, net on available-for-sale securities				110		110
Repurchase of common stock					$ (595,918)	(595,918)
Repurchase of common stock (in shares)					(10,803)
Foreign currency translation				35,531		(35,531)
Net income			1,409,594			1,409,594
Balance at Dec. 31, 2020	$ 3,193	4,537,982	6,432,074	3,034	$ (5,815,423)	5,160,860
Balance (in shares) at Dec. 31, 2020	638,662				(110,565)
Increase (Decrease) in Stockholders' Equity
Stock-based compensation		68,922				68,922
Exercise of stock options	$ 7	45,716				45,723
Exercise of stock options (in shares)	1,381
Unrealized loss, net on available-for-sale securities				(1,041)		(1,041)
Repurchase of common stock					$ (13,830)	(13,830)
Repurchase of common stock (in shares)					(155)
Foreign currency translation				(71,158)		(71,158)
Net income			1,377,475			1,377,475
Balance at Dec. 31, 2021	$ 3,200	$ 4,652,620	$ 7,809,549	$ (69,165)	$ (5,829,253)	$ 6,566,951
Balance (in shares) at Dec. 31, 2021	640,043				(110,720)

TREASURY STOCK PURCHASE (Details) - USD ($) shares in Thousands, $ in Millions	12 Months Ended
	Dec. 31, 2021	Feb. 28, 2022	Mar. 13, 2020
Treasury Stock Purchase
Number of shares repurchased of common stock from employees in lieu of cash or withholding taxes due	200
Cash payment for repurchase of common stock from employees in lieu of cash or withholding taxes due	$ 13.8
March 2020 Repurchase Plan
Treasury Stock Purchase
Share repurchase program, authorized amount		$ 441.5	$ 500.0
Number of shares repurchased of common stock from employees in lieu of cash or withholding taxes due	0

EMPLOYEE BENEFIT PLAN

12 Months Ended

Dec. 31, 2021

EMPLOYEE BENEFIT PLAN

EMPLOYEE BENEFIT PLAN

18. EMPLOYEE BENEFIT PLAN

Employees of the Company may participate in the Monster Beverage Corporation 401(k) Plan, a defined contribution plan, which qualifies under Section 401(k) of the Internal Revenue Code. Participating employees may contribute into a traditional plan with pretax salary or into a Roth plan with after tax salary up to statutory limits. The Company contributes 50% of the employee contribution, up to 8% of each employee’s earnings, which vest over four years (2 years of service = 50%, 3 years of service = 75%, 4 years of service = 100%). Matching contributions were $5.5 million, $4.7 million and $3.4 million for the years ended December 31, 2021, 2020 and 2019, respectively.

- Definition

The entire disclosure for retirement benefits.

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+ Details

ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Foreign Currency Translation and Transactions (Details) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2021	Dec. 31, 2020	Dec. 31, 2019
ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
Foreign currency transaction losses	$ (0.3)	$ 11.2	$ 4.1

INVENTORIES (Details) - USD ($) $ in Thousands	Dec. 31, 2021	Dec. 31, 2020
INVENTORIES
Raw materials	$ 349,865	$ 155,166
Finished goods	243,492	177,919
Inventories	$ 593,357	$ 333,085

RELATED PARTY TRANSACTIONS (Details) $ in Thousands	12 Months Ended
RELATED PARTY TRANSACTIONS (Details) $ in Thousands	Dec. 31, 2021 USD ($) director	Dec. 31, 2020 USD ($)	Dec. 31, 2019 USD ($)	Dec. 31, 2018 USD ($)
Related party transactions
Equity loss	$ 6,566,951	$ 5,160,860	$ 4,171,281	$ 3,610,901
TCCC
Related party transactions
Net sales	120,400	83,300	79,500
Purchases from related party	$ 27,200	23,900	25,400
TCCC \| Voting interests
Related party transactions
Related Party Ownership Interest (as a percent)	19.30%
TCCC Subsidiaries and TCCC Related parties
Related party transactions
Commission expenses	$ 77,500	56,500	50,100
TCCC Related parties and TCCC Independent Bottlers \| Operating expense
Related party transactions
Commission expenses	28,700	21,400	17,700
TCCC Subsidiaries
Related party transactions
Accounts receivable, net	94,647	44,925
Accounts payable	(35,248)	(30,792)
Accrued promotional allowances	(4,536)	(5,834)
Accrued liabilities	(26,616)	(15,446)
TCCC Subsidiaries \| Monster Energy Drinks
Related party transactions
Contract manufacturing expenses	$ 31,500	17,200	17,100
Principal owners
Related party transactions
Number of directors \| director	1
Expenses incurred in connection with materials or services provided by a related party	$ 3,600	$ 2,100	$ 1,500
Director that serves as counsel
Related party transactions
Ownership percentage				50.00%
Partnership contribution	1,400			$ 1,900
Equity loss	$ (200)

STOCK-BASED COMPENSATION - Plans (Details) $ in Millions	3 Months Ended				12 Months Ended
STOCK-BASED COMPENSATION - Plans (Details) $ in Millions	Dec. 31, 2021 shares	Sep. 30, 2021 shares	Jun. 30, 2021 shares	Mar. 31, 2021 shares	Dec. 31, 2021 USD ($) plan shares	Dec. 31, 2020 USD ($)	Dec. 31, 2019 USD ($) shares
STOCK-BASED COMPENSATION
Stock-based compensation plans \| plan					2
Aggregate amount of common stock authorized (in shares)	46,169,367				46,169,367
Compensation expense on share-based plans \| $					$ 70.5	$ 70.3	$ 63.4
Excess tax benefit realized for tax deductions from non-qualified stock option exercises and disqualifying dispositions of incentive stock options \| $					$ 6.8	$ 10.5	$ 25.9
Stock options
STOCK-BASED COMPENSATION
Common stock granted, net of cancellations (in shares)	12,000	23,000	13,000	1,015,000
2020 Omnibus Incentive Plan
STOCK-BASED COMPENSATION
Aggregate amount of common stock authorized (in shares)	32,000,000				32,000,000
Reduction in number of shares for each share granted					1
Shares available for grant	42,513,457				42,513,457
2020 Omnibus Incentive Plan \| Restricted Stock Units and Performance Share Units \| Minimum
STOCK-BASED COMPENSATION
Expiration period (in years)					3 years
Vesting period					3 years
2020 Omnibus Incentive Plan \| Restricted Stock Units and Performance Share Units \| Maximum
STOCK-BASED COMPENSATION
Vesting period					5 years
2020 Omnibus Incentive Plan \| Stock options
STOCK-BASED COMPENSATION
Expiration period (in years)					10 years
2020 Omnibus Incentive Plan \| Stock options \| Maximum
STOCK-BASED COMPENSATION
Expiration period (in years)					5 years
2011 Omnibus Incentive Plan
STOCK-BASED COMPENSATION
Aggregate amount of common stock authorized (in shares)							14,169,367
Reduction in number of shares for each share granted					2.6
Common stock granted, net of cancellations (in shares)					2,755,257
2017 Directors plan
STOCK-BASED COMPENSATION
Aggregate amount of common stock authorized (in shares)	1,250,000				1,250,000
Shares available for grant	1,151,099				1,151,099
Common stock granted, net of cancellations (in shares)					98,901

SUBSEQUENT EVENTS

12 Months Ended

Dec. 31, 2021

SUBSEQUENT EVENTS

SUBSEQUENT EVENTS

21. SUBSEQUENT EVENTS

On February 17, 2022, the Company completed its acquisition of CANarchy Craft Brewery Collective LLC (“CANarchy”), a craft beer and hard seltzer company, for $330.0 million in cash, subject to adjustments. The transaction allows us to enter the alcohol beverage sector and brings the Cigar City family of brands including Jai Alai IPA and Florida Man IPA, the Oskar Blues family of brands including Dale’s Pale Ale and Wild Basin Hard Seltzers, the Deep Ellum family of brands including Dallas Blonde and Deep Ellum IPA, the Perrin Brewing family of brands including Black Ale, the Squatters family of brands including Hop Rising Double IPA and Juicy IPA and the Wasatch family of brands including Apricot Hefeweizen to our beverage portfolio. The transaction does not include CANarchy’s stand-alone restaurants. The Company’s organizational structure for its existing energy beverage business will remain unchanged. CANarchy will function independently, retaining its own organizational structure and team.

COMMITMENTS AND CONTINGENCIES (Tables)

12 Months Ended

Dec. 31, 2021

COMMITMENTS AND CONTINGENCIES

Schedule of contractual obligations related primarily to sponsorships and other commitments


Year Ending December 31:

2022	$	236,698
2023		57,848
2024		10,497
2025		10
2026		—
2027 and thereafter		—
	$	305,053

FAIR VALUE OF CERTAIN FINANCIAL ASSETS AND LIABILITIES (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2021	Dec. 31, 2020
Fair value of certain financial assets and liabilities
Cash and cash equivalents	$ 1,326,462	$ 1,180,413
Short-term investments	1,749,727	881,354
Investments	99,419	44,291
Asset transfers between Level 1 and Level 2 measurements	0	0
Total fair value
Fair value of certain financial assets and liabilities
Cash	749,089	796,421
Foreign currency derivatives	(278)	(2,578)
Assets measured at fair value	3,175,330	2,103,480
Cash and cash equivalents	1,326,462	1,180,413
Short-term investments	1,749,727	881,354
Accounts receivable, net	654	69
Investments	99,419	44,291
Accrued liabilities	(932)	(2,647)
Total fair value \| Money market funds
Fair value of certain financial assets and liabilities
Assets measured at fair value	440,826	352,730
Total fair value \| Certificates of deposit
Fair value of certain financial assets and liabilities
Assets measured at fair value	44,502	23,137
Total fair value \| Commercial paper
Fair value of certain financial assets and liabilities
Assets measured at fair value	335,477	130,883
Total fair value \| Municipal securities
Fair value of certain financial assets and liabilities
Assets measured at fair value	2,428	9,083
Total fair value \| U.S. government agency securities
Fair value of certain financial assets and liabilities
Assets measured at fair value	75,137	91,882
Total fair value \| U.S. treasuries
Fair value of certain financial assets and liabilities
Assets measured at fair value	1,528,149	701,922
Level 1
Fair value of certain financial assets and liabilities
Cash	749,089	796,421
Assets measured at fair value	1,189,915	1,149,151
Cash and cash equivalents	1,189,915	1,149,151
Level 1 \| Money market funds
Fair value of certain financial assets and liabilities
Assets measured at fair value	440,826	352,730
Level 2
Fair value of certain financial assets and liabilities
Foreign currency derivatives	(278)	(2,578)
Assets measured at fair value	1,985,415	954,329
Cash and cash equivalents	136,547	31,262
Short-term investments	1,749,727	881,354
Accounts receivable, net	654	69
Investments	99,419	44,291
Accrued liabilities	(932)	(2,647)
Level 2 \| Certificates of deposit
Fair value of certain financial assets and liabilities
Assets measured at fair value	44,502	23,137
Level 2 \| Commercial paper
Fair value of certain financial assets and liabilities
Assets measured at fair value	335,477	130,883
Level 2 \| Municipal securities
Fair value of certain financial assets and liabilities
Assets measured at fair value	2,428	9,083
Level 2 \| U.S. government agency securities
Fair value of certain financial assets and liabilities
Assets measured at fair value	75,137	91,882
Level 2 \| U.S. treasuries
Fair value of certain financial assets and liabilities
Assets measured at fair value	$ 1,528,149	$ 701,922

COMMITMENTS AND CONTINGENCIES - Contractual obligations (Details) $ in Thousands	Dec. 31, 2021 USD ($)
COMMITMENTS AND CONTINGENCIES
2022	$ 236,698
2023	57,848
2024	10,497
2025	10
Total	$ 305,053

SEGMENT INFORMATION - Depreciation and Amortization (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2021	Dec. 31, 2020	Dec. 31, 2019
Segment information
Depreciation and amortization	$ 50,155	$ 57,030	$ 60,727
Depreciation and amortization	50,155	57,030	60,727
Corporate and Unallocated
Segment information
Depreciation and amortization	10,053	9,944	8,758
Monster Energy Drinks \| Operating segment
Segment information
Depreciation and amortization	34,532	38,277	39,397
Strategic Brands \| Operating segment
Segment information
Depreciation and amortization	1,085	4,178	7,935
Other \| Operating segment
Segment information
Depreciation and amortization	$ 4,485	$ 4,631	$ 4,637

INCOME TAXES

12 Months Ended

Dec. 31, 2021

INCOME TAXES

INCOME TAXES

16. INCOME TAXES

The Company evaluated the various provisions of the Tax Reform Act, including, the global intangible low-taxed income (“GILTI”) and the foreign derived intangible income provisions. The Company will treat any U.S. tax on foreign earnings under GILTI as a current period expense when incurred.

The Company currently considers the earnings of its foreign entities (excluding Japan) to be permanently reinvested outside the United States based on estimates that future domestic cash generation will be sufficient to meet future domestic cash needs. Accordingly, deferred income taxes have not been recorded for the undistributed earnings of the Company’s foreign subsidiaries excluding Japan. Deferred income taxes have not been recorded for Japan, as any federal, state, or foreign withholding taxes associated with the repatriation of those earnings would be immaterial.

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


	Year Ended December 31,
	2021		2020		2019
Domestic*	$	1,431,797	$	1,374,402	$	1,196,883
Foreign*		369,622		251,755		219,079
Income before provision for income taxes	$	1,801,419	$	1,626,157	$	1,415,962

*After intercompany royalties, management fees and interest charges from the Company’s domestic to foreign entities of $61.1 million, $54.2 million and $51.2 million for the years ended December 31, 2021, 2020 and 2019, respectively.

Components of the provision for income taxes are as follows:


	Year Ended December 31,
	2021		2020		2019
Current:
Federal	$	273,115	$	259,073	$	212,068
State		44,990		43,704		39,982
Foreign		89,410		70,658		55,167
		407,515		373,435		307,217

Deferred:
Federal		14,750		11,401		8,320
State		4,689		4,709		(6,878)
Foreign		5,092		(167,595)		(4,219)
		24,531		(151,485)		(2,777)

Valuation allowance		(8,102)		(5,387)		3,687
	$	423,944	$	216,563	$	308,127

A reconciliation of the total provision for income taxes after applying the U.S. federal statutory rate of 21% to income before provision for income taxes to the reported provision for income taxes are as follows for the years ended:


	Year Ended December 31,
	2021		2020		2019
U.S. Federal tax expense at statutory rates	$	378,298	$	341,493	$	297,352
State income taxes, net of federal tax benefit		38,894		37,478		30,098
Permanent differences		(4,168)		(1,064)		(2,128)
Stock based compensation		2,790		1,097		(13,473)
Intra-company transfer benefit		—		(165,075)		—
Other		(649)		(7,388)		(12,423)
Foreign rate differential		16,881		15,409		5,014
Valuation allowance		(8,102)		(5,387)		3,687
	$	423,944	$	216,563	$	308,127

Major components of the Company’s deferred tax assets (liabilities) at December 31, 2021 and 2020 are as follows:


	2021		2020
Deferred Tax Assets:
Reserve for sales returns	$	889	$	275
Reserve for inventory obsolescence		3,643		2,366
Reserve for marketing development fund		8,951		9,629
Capitalization of inventory costs		2,533		3,365
State franchise tax - current		2,493		4,229
Accrued compensation		2,854		1,284
Accrued other liabilities		4,634		7,464
Deferred revenue		68,557		75,592
Stock-based compensation		24,635		23,370
Foreign net operating loss carryforward		14,507		21,626
Prepaid supplies		6,317		5,551
Termination payments		58,042		63,009
Operating lease liabilities		4,711		4,434
Intangibles		72,666		87,687
Impairment-trademarks and others		2,047		2,055
Other deferred tax assets		33,013		27,164
Total gross deferred tax assets	$	310,492	$	339,100

Deferred Tax Liabilities:
Amortization of trademarks	$	(41,517)	$	(42,161)
State franchise tax - deferred		(5,505)		(6,318)
Operating lease ROU assets		(4,711)		(4,434)
Other deferred tax liabilities		(618)		(58)
Depreciation		(5,907)		(9,363)
Total gross deferred tax liabilities		(58,258)		(62,334)

Valuation Allowance		(27,013)		(35,116)

Net deferred tax assets	$	225,221	$	241,650

During the years ended December 31, 2021, 2020 and 2019, the Company established full valuation allowances against certain deferred tax assets, resulting from cumulative net operating losses incurred by certain foreign subsidiaries of the Company. The effect of the valuation allowances and the subsequent related impact on the Company’s overall tax rate was to decrease the Company’s provision for income taxes by $8.1 million and $5.4 million for the years ended December 31, 2021 and 2020, respectively, and increase the Company’s provision for income taxes $3.7 million for the year ended December 31, 2019. At December 31, 2021, the Company had net operating loss carryforwards of approximately $60.5 million. Of this amount, $35.2 million may be carried forward indefinitely. The remaining $25.3 million of net operating loss carryforwards will begin to expire in 2022.

In October 2020, the Company completed an intra-entity transfer of intangible assets between certain of the Company’s foreign subsidiaries to better align its international structure with its expanding operations. The transfer resulted in a step-up of the tax-deductible basis in the transferred assets in a foreign jurisdiction, and created a temporary difference between the tax basis and book basis for such intangible assets. The Company recognized deferred tax assets of approximately $165.1 million, with a corresponding reduction to the provision for income taxes during the fourth quarter of 2020 in its consolidated financial statements. The tax deductions for the amortization of the deferred tax assets will be recognized in the future and any amortization not deducted for tax purposes will be carried forward indefinitely. The tax impact on the foreign subsidiary transferor was not material.

The following is a roll-forward of the Company’s total gross unrecognized tax benefits, not including interest and penalties, for the years ended December 31, 2021, 2020 and 2019:


	Gross Unrecognized Tax
	Benefits
Balance at December 31, 2018	$	5,035
Additions for tax positions related to the current year		—
Additions for tax positions related to the prior year		1,833
Decreases for tax positions related to prior years		(3,875)
Balance at December 31, 2019	$	2,993
Additions for tax positions related to the current year		—
Additions for tax positions related to the prior year		—
Decreases for tax positions related to prior years		(2,251)
Balance at December 31, 2020	$	742
Additions for tax positions related to the current year		—
Additions for tax positions related to the prior year		—
Decreases for tax positions related to prior years		(742)
Balance at December 31, 2021	$	—

The Company recognizes accrued interest and penalties related to unrecognized tax benefits in the provision for income taxes in the Company’s consolidated financial statements. As of December 31, 2021, the Company had no unrecognized tax benefits.

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

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

The Company is in various stages of examination with certain states and certain foreign jurisdictions, including the United Kingdom and Ireland. The Company’s 2018 through 2020 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 2017 through 2020 tax years.

- Definition

The entire disclosure for income taxes. Disclosures may include net deferred tax liability or asset recognized in an enterprise's statement of financial position, net change during the year in the total valuation allowance, approximate tax effect of each type of temporary difference and carryforward that gives rise to a significant portion of deferred tax liabilities and deferred tax assets, utilization of a tax carryback, and tax uncertainties information.

+ References

Reference 1: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 740
-SubTopic 10
-Section 50
-Paragraph 21
-URI http://asc.fasb.org/extlink&oid=121826272&loc=d3e32857-109319

Reference 2: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 740
-SubTopic 10
-Section S99
-Paragraph 2
-Subparagraph (SAB Topic 11.C)
-URI http://asc.fasb.org/extlink&oid=122134291&loc=d3e330215-122817

Reference 3: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 740
-SubTopic 10
-Section 50
-Paragraph 17
-Subparagraph (b)
-URI http://asc.fasb.org/extlink&oid=121826272&loc=d3e32809-109319

Reference 4: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 740
-SubTopic 10
-Section S99
-Paragraph 1
-Subparagraph (SAB TOPIC 6.I.5.Q1)
-URI http://asc.fasb.org/extlink&oid=122134291&loc=d3e330036-122817

Reference 5: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 740
-SubTopic 10
-Section 50
-Paragraph 14
-URI http://asc.fasb.org/extlink&oid=121826272&loc=d3e32705-109319

Reference 6: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 740
-SubTopic 270
-Section 50
-Paragraph 1
-URI http://asc.fasb.org/extlink&oid=6424409&loc=d3e44925-109338

Reference 7: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 740
-URI http://asc.fasb.org/topic&trid=2144680

Reference 8: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 740
-SubTopic 30
-Section 50
-Paragraph 2
-Subparagraph (a)
-URI http://asc.fasb.org/extlink&oid=6424122&loc=d3e41874-109331

Reference 9: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 235
-SubTopic 10
-Section S99
-Paragraph 1
-Subparagraph (SX 210.4-08(h)(2))
-URI http://asc.fasb.org/extlink&oid=120395691&loc=d3e23780-122690

+ Details

PROPERTY AND EQUIPMENT, Net (Tables)

12 Months Ended

Dec. 31, 2021

PROPERTY AND EQUIPMENT, Net

Schedule of property and equipment


	2021		2020
Land	$	85,455	$	85,876
Leasehold improvements		11,845		11,524
Furniture and fixtures		8,274		8,271
Office and computer equipment		21,601		21,657
Computer software		8,383		6,945
Equipment		190,333		185,348
Buildings		167,243		156,616
Vehicles		45,404		43,173
		538,538		519,410
Less: accumulated depreciation and amortization		(224,785)		(204,754)
	$	313,753	$	314,656

FAIR VALUE OF CERTAIN FINANCIAL ASSETS AND LIABILITIES (Tables)

12 Months Ended

Dec. 31, 2021

FAIR VALUE OF CERTAIN FINANCIAL ASSETS AND LIABILITIES

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


December 31, 2021	Level 1		Level 2		Level 3		Total
Cash	$	749,089	$	—	$	—	$	749,089
Money market funds		440,826		—		—		440,826
Certificates of deposit		—		44,502		—		44,502
Commercial paper		—		335,477		—		335,477
Municipal securities		—		2,428		—		2,428
U.S. government agency securities		—		75,137		—		75,137
U.S. treasuries		—		1,528,149		—		1,528,149
Foreign currency derivatives		—		(278)		—		(278)
Total	$	1,189,915	$	1,985,415	$	—	$	3,175,330

Amounts included in:
Cash and cash equivalents	$	1,189,915	$	136,547	$	—	$	1,326,462
Short-term investments		—		1,749,727		—		1,749,727
Accounts receivable, net		—		654		—		654
Investments		—		99,419		—		99,419
Accrued liabilities		—		(932)		—		(932)
Total	$	1,189,915	$	1,985,415	$	—	$	3,175,330


December 31, 2020	Level 1		Level 2		Level 3		Total
Cash	$	796,421	$	—	$	—	$	796,421
Money market funds		352,730		—		—		352,730
Certificates of deposit		—		23,137		—		23,137
Commercial paper		—		130,883		—		130,883
Municipal securities		—		9,083		—		9,083
U.S. government agency securities		—		91,882		—		91,882
U.S. treasuries		—		701,922		—		701,922
Foreign currency derivatives		—		(2,578)		—		(2,578)
Total	$	1,149,151	$	954,329	$	—	$	2,103,480

Amounts included in:
Cash and cash equivalents	$	1,149,151	$	31,262	$	—	$	1,180,413
Short-term investments		—		881,354		—		881,354
Accounts receivable, net		—		69		—		69
Investments		—		44,291		—		44,291
Accrued liabilities		—		(2,647)		—		(2,647)
Total	$	1,149,151	$	954,329	$	—	$	2,103,480

SCHEDULE II - VALUATION AND QUALIFYING ACCOUNTS (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2021	Dec. 31, 2020	Dec. 31, 2019
Allowance for doubtful accounts, sales returns and cash discounts
Changes to valuation allowance
Balance at beginning of period	$ 1,878	$ 2,045	$ 1,589
Charged to cost and expenses	14,799	9,664	9,583
Deductions	(12,001)	(9,831)	(9,127)
Balance at end of period	4,676	1,878	2,045
Allowance on Deferred Tax Assets and Unrecognized Tax Benefits
Changes to valuation allowance
Balance at beginning of period	35,993	43,853	42,748
Charged to cost and expenses	(8,980)	(7,860)	1,105
Balance at end of period	$ 27,013	$ 35,993	$ 43,853

ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) (Details) - USD ($) $ in Thousands	Dec. 31, 2021	Dec. 31, 2020
Components of accumulated other comprehensive loss:
Accumulated net unrealized (loss) gain on available-for-sale securities	$ (956)	$ 84
Foreign currency translation adjustments, net of tax	(68,209)	2,950
Total accumulated other comprehensive income (loss)	$ (69,165)	$ 3,034

- Definition

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

+ References + Details

REVENUE RECOGNITION

12 Months Ended

Dec. 31, 2021

REVENUE RECOGNITION

REVENUE RECOGNITION

2. REVENUE RECOGNITION

Revenues are accounted for in accordance with ASC 606 “Revenue from Contracts with Consumers”. 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, Reign Total Body Fuel® high performance energy drinks and True North® Pure Energy Seltzers, (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 ready-to-drink packaged energy drinks 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 December 31, 2021 and December 31, 2020.

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 in the consolidated statements of income.

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

The Company’s promotional allowance programs 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 deferred revenue and recognized as revenue ratably over the anticipated life of the respective distribution agreements, generally over 20 years.

The Company also sells and/or 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, backpacks, 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 table disaggregates the Company’s revenue by geographical markets and reportable segments:


	Year Ended December 31, 2021
							Latin
							America
	U.S. and						and
Net Sales	Canada		EMEA¹		Asia Pacific		Caribbean		Total
Monster Energy® Drinks	$	3,455,704	$	1,004,005	$	446,023	$	314,941	$	5,220,673
Strategic Brands		158,390		99,423		26,811		10,138		294,762
Other		25,917		—		—		—		25,917
Total Net Sales	$	3,640,011	$	1,103,428	$	472,834	$	325,079	$	5,541,352


	Year Ended December 31, 2020
							Latin
							America
	U.S. and						and
Net Sales	Canada		EMEA¹		Asia Pacific		Caribbean		Total
Monster Energy® Drinks	$	3,020,667	$	675,045	$	400,317	$	209,217	$	4,305,246
Strategic Brands		166,861		70,782		23,475		5,236		266,354
Other		27,038		—		—		—		27,038
Total Net Sales	$	3,214,566	$	745,827	$	423,792	$	214,453	$	4,598,638


	Year Ended December 31, 2019
							Latin
							America
	U.S. and						and
Net Sales	Canada		EMEA¹		Asia Pacific		Caribbean		Total
Monster Energy®Drinks	$	2,799,701	$	599,706	$	326,684	$	177,938	$	3,904,029
Strategic Brands		173,968		74,803		25,060		1,094		274,925
Other		21,865		—		—		—		21,865
Total Net Sales	$	2,995,534	$	674,509	$	351,744	$	179,032	$	4,200,819

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 December 31, 2021 and 2020, the Company had $285.8 million and $309.9 million of deferred revenue, respectively, which is included in current and long-term deferred revenue in the Company’s consolidated balance sheet. During the years ended December 31, 2021, 2020 and 2019, $41.5 million, $42.1 million and $46.3 million, respectively, of deferred revenue, was recognized in net sales. See Note 10.

- Definition

The entire disclosure of revenue from contract with customer to transfer good or service and to transfer nonfinancial asset. Includes, but is not limited to, disaggregation of revenue, credit loss recognized from contract with customer, judgment and change in judgment related to contract with customer, and asset recognized from cost incurred to obtain or fulfill contract with customer. Excludes insurance and lease contracts.

+ References

Reference 1: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 606
-URI http://asc.fasb.org/topic&trid=49130388

Reference 2: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 606
-SubTopic 10
-Section 50
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-URI http://asc.fasb.org/extlink&oid=123351226&loc=SL49130551-203045

Reference 3: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
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Reference 4: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
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-URI http://asc.fasb.org/extlink&oid=123351226&loc=SL49130554-203045

Reference 5: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
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-Section 50
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-URI http://asc.fasb.org/extlink&oid=123351226&loc=SL49130550-203045

Reference 6: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
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Reference 9: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
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Reference 10: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
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-Section 50
-Paragraph 12
-Subparagraph (c)
-URI http://asc.fasb.org/extlink&oid=123351226&loc=SL49130554-203045

+ Details

INCOME TAXES - Unrecognized Tax Benefit Rollforward (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2021	Dec. 31, 2020	Dec. 31, 2019
Gross unrecognized tax benefits, roll forward
Balance at the beginning of the period	$ 742	$ 2,993	$ 5,035
Additions for tax positions related to the prior years			1,833
Decreases for tax positions related to prior years	$ (742)	(2,251)	(3,875)
Balance at the end of the period		$ 742	$ 2,993

SEGMENT INFORMATION - Goodwill and other intangible assets (Details) - USD ($) $ in Thousands	Dec. 31, 2021	Dec. 31, 2020
Segment information
Goodwill and other intangible assets	$ 2,404,029	$ 2,390,689
Monster Energy Drinks \| Operating segment
Segment information
Goodwill and other intangible assets	1,420,503	1,406,646
Strategic Brands \| Operating segment
Segment information
Goodwill and other intangible assets	978,032	974,132
Other \| Operating segment
Segment information
Goodwill and other intangible assets	$ 5,494	$ 9,911

ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Property and Equipment (Details) - Property and Equipment	12 Months Ended
	Dec. 31, 2021
Minimum
Property and equipment, net
Estimated useful lives (in years)	3 years
Maximum
Property and equipment, net
Estimated useful lives (in years)	30 years

INCOME TAXES - Classification and Reconciliation (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2021	Dec. 31, 2020	Dec. 31, 2019
Domestic and foreign components of company's income before income taxes
Domestic	$ 1,431,797	$ 1,374,402	$ 1,196,883
Foreign	369,622	251,755	219,079
INCOME BEFORE PROVISION FOR INCOME TAXES	1,801,419	1,626,157	1,415,962
Intercompany royalties, management fees and interest charges from the Company's domestic to foreign entities	61,100	54,200	51,200
Current:
Federal	273,115	259,073	212,068
State	44,990	43,704	39,982
Foreign	89,410	70,658	55,167
Total current provision	407,515	373,435	307,217
Deferred:
Federal	14,750	11,401	8,320
State	4,689	4,709	(6,878)
Foreign	5,092	(167,595)	(4,219)
Total deferred provision	24,531	(151,485)	(2,777)
Valuation allowance	(8,102)	(5,387)	3,687
Total provision for income taxes	$ 423,944	$ 216,563	$ 308,127
Federal statutory rate (as a percent)	21.00%	21.00%	21.00%
Reconciliation of income tax expense
U.S. Federal tax expense at statutory rates	$ 378,298	$ 341,493	$ 297,352
State income taxes, net of federal tax benefit	38,894	37,478	30,098
Permanent differences	(4,168)	(1,064)	(2,128)
Stock based compensation	2,790	1,097	(13,473)
Intra-company transfer benefit		(165,075)
Other	(649)	(7,388)	(12,423)
Foreign rate differential	16,881	15,409	5,014
Valuation allowance	(8,102)	(5,387)	3,687
Total provision for income taxes	$ 423,944	$ 216,563	$ 308,127

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2021	Dec. 31, 2020	Dec. 31, 2019
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME
Net income, as reported	$ 1,377,475	$ 1,409,594	$ 1,107,835
Other comprehensive (loss) income:
Change in foreign currency translation adjustment, net of tax	(71,158)	35,531	194
Available-for-sale investments:
Change in net unrealized gains (losses)	(1,041)	(110)	283
Net change in available-for-sale investments	(1,041)	(110)	283
Other comprehensive (loss) income	(72,199)	35,421	477
Comprehensive income	$ 1,305,276	$ 1,445,015	$ 1,108,312

- Definition

Amount, after deduction of tax, noncontrolling interests, dividends on preferred stock and participating securities; of income (loss) available to common shareholders.

+ References

Reference 1: http://www.xbrl.org/2003/role/disclosureRef
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Reference 2: http://www.xbrl.org/2003/role/disclosureRef
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+ Details

INVESTMENTS (Tables)

12 Months Ended

Dec. 31, 2021

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
December 31, 2021	Cost		Gains		Losses		Value		Months		Months
Available-for-sale
Short-term:
Commercial paper	$	334,077	$	—	$	—	$	334,077	$	—	$	—
Certificates of deposit		44,502		—		—		44,502		—		—
Municipal securities		666		—		—		666		—		—
U.S. government agency securities		62,687		—		26		62,661		26		—
U.S. treasuries		1,308,536		2		717		1,307,821		717		—
Long-term:
U.S. government agency securities		12,500		—		24		12,476		24		—
U.S. treasuries		87,133		—		190		86,943		190		—
Total	$	1,850,101	$	2	$	957	$	1,849,146	$	957	$	—


									Continuous		Continuous
			Gross		Gross				Unrealized		Unrealized
			Unrealized		Unrealized				Loss Position		Loss Position
	Amortized		Holding		Holding		Fair		less than 12		greater than 12
December 31, 2020	Cost		Gains		Losses		Value		Months		Months
Available-for-sale
Short-term:
Commercial paper	$	119,886	$	—	$	—	$	119,886	$	—	$	—
Certificates of deposit		20,387		—		—		20,387		—		—
Municipal securities		9,083		—		—		9,083		—		—
U.S. government agency securities		81,521		13		3		81,531		3		—
U.S. treasuries		650,386		150		69		650,467		69		—
Long-term:
U.S. government agency securities		10,350		1		—		10,351		—		—
U.S. treasuries		33,946		1		7		33,940		7		—
Total	$	925,559	$	165	$	79	$	925,645	$	79	$	—

Summary of the underlying contractual maturities of investments

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


	December 31, 2021				December 31, 2020
	Amortized Cost		Fair Value		Amortized Cost		Fair Value
Less than 1 year:
Commercial paper	$	334,077	$	334,077	$	119,886	$	119,886
Municipal securities		666		666		9,083		9,083
U.S. government agency securities		62,687		62,661		81,521		81,531
Certificates of deposit		44,502		44,502		20,387		20,387
U.S. treasuries		1,308,536		1,307,821		650,386		650,467
Due 1 - 10 years:
U.S. treasuries		87,133		86,943		33,946		33,940
U.S. government agency securities		12,500		12,476		10,350		10,351
Total	$	1,850,101	$	1,849,146	$	925,559	$	925,645

REVENUE RECOGNITION - Disaggregation of Revenue (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2021	Dec. 31, 2020	Dec. 31, 2019
Total Net Sales	$ 5,541,352	$ 4,598,638	$ 4,200,819
Contract Liabilities
Deferred revenue	285,800	309,900
Deferred revenue recognized in net sales	41,500	42,100	46,300
U.S. and Canada
Total Net Sales	3,640,011	3,214,566	2,995,534
EMEA
Total Net Sales	1,103,428	745,827	674,509
Asia Pacific
Total Net Sales	472,834	423,792	351,744
Latin America and Caribbean
Total Net Sales	325,079	214,453	179,032
Monster Energy Drinks
Total Net Sales	5,220,673	4,305,246	3,904,029
Monster Energy Drinks \| U.S. and Canada
Total Net Sales	3,455,704	3,020,667	2,799,701
Monster Energy Drinks \| EMEA
Total Net Sales	1,004,005	675,045	599,706
Monster Energy Drinks \| Asia Pacific
Total Net Sales	446,023	400,317	326,684
Monster Energy Drinks \| Latin America and Caribbean
Total Net Sales	314,941	209,217	177,938
Strategic Brands
Total Net Sales	294,762	266,354	274,925
Strategic Brands \| U.S. and Canada
Total Net Sales	158,390	166,861	173,968
Strategic Brands \| EMEA
Total Net Sales	99,423	70,782	74,803
Strategic Brands \| Asia Pacific
Total Net Sales	26,811	23,475	25,060
Strategic Brands \| Latin America and Caribbean
Total Net Sales	10,138	5,236	1,094
Other
Total Net Sales	25,917	27,038	21,865
Other \| U.S. and Canada
Total Net Sales	$ 25,917	$ 27,038	$ 21,865

SEGMENT INFORMATION

12 Months Ended

Dec. 31, 2021

SEGMENT INFORMATION

SEGMENT INFORMATION

19. 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, Reign Total Body Fuel® high performance energy drinks and True North® Pure Energy Seltzers, (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 ready-to-drink packaged drinks 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 years ended December 31 are as follows:




	2021		2020		2019
Net sales:
Monster Energy® Drinks⁽¹⁾	$	5,220,673	$	4,305,246	$	3,904,029
Strategic Brands		294,762		266,354		274,925
Other		25,917		27,038		21,865
Corporate and unallocated		—		—		—
	$	5,541,352	$	4,598,638	$	4,200,819




	2021		2020		2019
Operating Income:
Monster Energy® Drinks⁽¹⁾	$	1,990,785	$	1,820,346	$	1,565,977
Strategic Brands		173,660		155,047		164,053
Other		6,935		5,930		3,650
Corporate and unallocated		(373,913)		(348,170)		(330,741)
	$	1,797,467	$	1,633,153	$	1,402,939




	2021		2020		2019
Income before tax:
Monster Energy® Drinks⁽¹⁾	$	1,992,185	$	1,820,625	$	1,567,022
Strategic Brands		173,739		155,047		164,049
Other		6,935		5,933		3,655
Corporate and unallocated		(371,440)		(355,448)		(318,764)
	$	1,801,419	$	1,626,157	$	1,415,962

(1)

Includes $41.5 million, $42.1 million and $46.3 million for the years ended December 31, 2021, 2020 and 2019, respectively, related to the recognition of deferred revenue.




	2021		2020		2019
Depreciation and amortization:
Monster Energy® Drinks	$	34,532	$	38,277	$	39,397
Strategic Brands		1,085		4,178		7,935
Other		4,485		4,631		4,637
Corporate and unallocated		10,053		9,944		8,758
	$	50,155	$	57,030	$	60,727

Corporate and unallocated expenses were $373.9 million for the year ended December 31, 2021 and included $258.6 million of payroll costs, of which $70.3 million was attributable to stock-based compensation expense (See Note 15, “Stock-Based Compensation”), $77.9 million of professional service expenses, including accounting and legal costs, $9.3 million of insurance costs and $28.1 million of other operating expenses.

Corporate and unallocated expenses were $348.2 million for the year ended December 31, 2020 and included $234.1 million of payroll costs, of which $69.9 million was attributable to stock-based compensation expense (See Note 15, “Stock-Based Compensation”), $67.6 million of professional service expenses, including accounting and legal costs, $7.5 million of insurance costs and $39.0 million of other operating expenses.

Corporate and unallocated expenses were $330.7 million for the year ended December 31, 2019 and included $203.3 million of payroll costs, of which $63.4 million was attributable to stock-based compensation expense (See Note 15, “Stock-Based Compensation”), $78.5 million of professional service expenses, including accounting and legal costs, $6.1 million of insurance costs and $42.8 million of other operating expenses.

Coca-Cola Consolidated, Inc. accounted for approximately 12%, 12% and 13% of the Company’s net sales for the years ended December 31, 2021, 2020 and 2019, respectively.

Reyes Coca-Cola Bottling, LLC accounted for approximately 10%, 11% and 11% of the Company’s net sales for the years ended December 31, 2021, 2020 and 2019, respectively.

Coca-Cola Europacific Partners accounted for approximately 12%, 10% and 10% of the Company’s net sales for the years ended December 31, 2021, 2020 and 2019, respectively.

Net sales to customers outside the United States amounted to $2.04 billion, $1.51 billion and $1.33 billion for the years ended December 31, 2021, 2020 and 2019, respectively. Such sales were approximately 37%, 33% and 32% of net sales for the years ended December 31, 2021, 2020 and 2019, respectively.

Goodwill and other intangible assets for the Company’s reportable segments as of December 31, 2021 and 2020 are as follows:


	2021		2020
Goodwill and other intangible assets:
Monster Energy® Drinks	$	1,420,503	$	1,406,646
Strategic Brands		978,032		974,132
Other		5,494		9,911
Corporate and unallocated		—		—
	$	2,404,029	$	2,390,689

- Definition

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

+ References

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+ Details

STOCK-BASED COMPENSATION

12 Months Ended

Dec. 31, 2021

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 December 31, 2021: (i) the Monster Beverage Corporation 2020 Omnibus Incentive Plan (the “2020 Omnibus Incentive Plan”), which includes the Monster Beverage Corporation Deferred Compensation Plan as a sub plan thereunder, and (ii) the Monster Beverage Corporation 2017 Compensation Plan for Non-Employee Directors, which includes the Monster Beverage Corporation Deferred Compensation Plan for Non-Employee Directors as a sub plan thereunder. The 2020 Omnibus Incentive Plan was approved by the Board of Directors on April 14, 2020 and approved by the stockholders of the Company at the annual meeting of the Company’s stockholders held on June 3, 2020 (the “Effective Date”). The 2020 Omnibus Incentive Plan replaced the Monster Beverage Corporation 2011 Omnibus Incentive Plan (the “2011 Omnibus Incentive Plan”).

The 2020 Omnibus Incentive Plan provides for the granting of stock options, stock appreciation rights, restricted stock, restricted stock units, performance awards, and other share-based awards up to an aggregate of 46,169,367 shares of the Company’s common stock, comprised of 32,000,000 new shares of common stock reserved under the 2020 Omnibus Incentive Plan, which were authorized on the Effective Date, and 14,169,367 shares of common stock that were available for grant under the 2011 Omnibus Incentive Plan as of December 31, 2019 and prior to the Effective Date. Shares authorized under the 2020 Omnibus Incentive Plan are reduced by one (1) share for options or stock appreciation rights granted under the 2020 Omnibus Incentive Plan and for any grants after December 31, 2019 under the 2011 Omnibus Incentive Plan, and by 2.6 shares for each share granted or issued with respect to a Full Value Award under either the 2020 Omnibus Incentive Plan or for any shares granted after December 31, 2019 under the 2011 Omnibus Incentive Plan. A “Full Value Award” is an award other than an incentive stock option, a non-qualified stock option, or a stock appreciation right, which is settled by the issuance of shares. Options granted under the 2020 Omnibus Incentive Plan may be incentive stock options under Section 422 of the Internal Revenue Code, as amended (the “Code”), or non-qualified stock options.

Shares previously granted under the 2011 Omnibus Incentive Plan after December 31, 2019 and prior to the Effective Date of the 2020 Omnibus Incentive Plan reduced the number of shares available for grant under the 2020 Omnibus Incentive Plan. As of December 31, 2021, 2,755,257 shares of the Company’s common stock have been granted, net of cancellations, and 42,513,457 shares (as adjusted for Full Value Awards) of the Company’s common stock remain available for grant under the 2020 Omnibus Incentive Plan.

The Compensation Committee of the Board of Directors (the “Compensation Committee”) has sole and exclusive authority to grant stock awards to all employees who are not new hires and to all new hires who are subject to Section 16 of the Exchange Act (“Section 16”). Each of the Compensation Committee and the Executive Committee of the Board of Directors (the “Executive Committee”) independently has the authority to grant stock awards to (i) new hires and (ii) employees receiving a promotion, in each case, who are not Section 16 employees. Awards granted by the Executive Committee are not subject to approval or ratification by the Board of Directors or the Compensation Committee. Options granted under the 2020 Omnibus Incentive Plan generally vest over a three- to five-year period from the grant date and are generally exercisable up to 10 years after the grant date. Restricted stock units granted under the 2020 Omnibus Incentive Plan generally vest over a three- or five-year period from the grant date. Performance share units will generally vest based on the achievement of performance goals specified for the applicable award.

In 2016, the Company adopted the Deferred Compensation Plan (as a sub plan to the 2011 Omnibus Incentive Plan), pursuant to which eligible employees may elect to defer cash and/or equity based compensation and to receive the deferred amounts, together with an investment return (positive or negative), either at a pre-determined time in the future or upon termination of their employment with the Company or its subsidiaries or affiliates that are participating employers under the Deferred Compensation Plan, as provided under the Deferred Compensation Plan and in relevant deferral elections. Deferrals under the Deferred Compensation Plan are unfunded and unsecured. As of December 31, 2021 deferrals under the Deferred Compensation Plan are solely comprised of cash compensation and equity compensation and are not material in the aggregate.

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

Each calendar year, a non-employee director will receive an annual retainer and annual equity award, as provided for in the 2017 Directors Plan, which may be modified from time to time. Currently, with respect to equity awards, each non-employee director receives an award of restricted stock units at each annual meeting of the Company’s stockholders or promptly thereafter. A non-employee director’s annual award of restricted stock units will generally vest on the earliest to occur of: (a) the last business day immediately preceding the annual meeting of the Company’s stockholders in the calendar year following the calendar year in which the grant date occurs, (b) a Change of Control (as defined in the 2017 Directors Plan), (c) the non-employee director’s death, or (d) the date of the non-employee director’s separation from service due to disability, so long as the non-employee director remains a non-employee director through such date. The Board of Directors may in its discretion award non-employee directors stock options, stock appreciation rights, restricted stock and other share-based awards in lieu of or in addition to restricted stock units. The Board of Directors may amend or terminate the 2017 Directors Plan at any time, subject to certain limitations set forth in the 2017 Directors Plan. As of December 31, 2021, 98,901 shares of the Company’s common stock had been granted under the 2017 Directors Plan, and 1,151,099 shares of the Company’s common stock remain available for grant.

In 2017, the Company adopted the Deferred Compensation Plan for Non-Employee Directors (as a sub plan to the 2017 Directors Plan), pursuant to which the Board of Directors may permit non-employee directors to elect, at such times and in accordance with rules and procedures (or sub-plan) adopted by the Board of Directors (which are intended to comply with Section 409A of the Code, as applicable), to receive all or any portion of such non-employee director’s compensation, whether payable in cash or in equity, on a deferred basis. Deferrals under the Deferred Compensation Plan for Non-Employee Directors are unfunded and unsecured. As of December 31, 2021, deferrals under the Deferred Compensation Plan for Non-Employee Directors are solely comprised of cash compensation and equity compensation and are not material in the aggregate. The 2017 Directors Plan was adopted to effectuate any such deferrals. The 2017 Directors Plan is administered by the Board of Directors. Each award granted under the 2017 Directors Plan will be evidenced by a written agreement and will contain the terms and conditions that the Board of Directors deems appropriate.

In February 2022, the Board of Directors amended and restated the 2017 Directors Plan to require each non-employee director to satisfy the share ownership guidelines set forth below, as may be modified by the Board of Directors from time to time. The current share ownership guidelines provide that non-employee directors of the Company must:

●

Hold shares of Company common stock having a total value of five times the annual retainer payable to a non-employee director (excluding any portion of the annual retainer attributable to a non-employee director’s service as a member of a subcommittee, as a chair of a subcommittee or as the lead independent director, as applicable). For this purpose, deferred shares or deferred restricted stock units will be deemed held, to the extent vested.

●

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

●

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

●

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

The Company recorded $70.5 million, $70.3 million and $63.4 million of compensation expense relating to outstanding options, restricted stock units, performance share units and other share-based awards during the years ended December 31, 2021, 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 years ended December 31, 2021, 2020 and 2019 was $6.8 million, $10.5 million and $25.9 million, respectively.

Stock Options

Under the Company’s stock-based compensation plans, all stock options granted through December 31, 2021 were granted at prices based on the fair value of the Company’s common stock on the date of grant. The Company records compensation expense for employee stock options based on the estimated fair value of the options on the date of grant using the Black-Scholes-Merton option pricing formula with the assumptions included in the table below. The Company records compensation expense for non-employee stock options based on the estimated fair value of the options as of the earlier of (1) the date at which a commitment for performance by the non-employee to earn the stock option is reached or (2) the date at which the non-employee’s performance is complete, using the Black-Scholes-Merton option pricing formula with the assumptions included in the table below. The Company uses historical data to determine the exercise behavior, volatility and forfeiture rate of the options.

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



	2021		2020		2019
Dividend yield	0.0	%	0.0	%	0.0	%
Expected volatility	28.9	%	30.4	%	30.2	%
Risk-free interest rate	0.85	%	0.70	%	2.37	%
Expected term	5.8 Years		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 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	Aggregate
	Shares	Price Per		Term (in	Intrinsic
Options	(in thousands)	Share		years)	Value
Outstanding at January 1, 2021	13,973	$	44.93	5.7	$	664,432
Granted 01/01/21 - 03/31/21	1,015	$	88.95
Granted 04/01/21 - 06/30/21	13	$	91.36
Granted 07/01/21 - 09/30/21	23	$	95.33
Granted 10/01/21 - 12/31/21	12	$	87.00
Exercised	(1,037)	$	44.10
Cancelled or forfeited	(139)	$	63.05
Outstanding at December 31, 2021	13,860	$	48.19	5.1	$	663,148
Vested and expected to vest in the future at December 31, 2021	13,633	$	47.80	5.0	$	657,633
Exercisable at December 31, 2021	9,644	$	40.33	4.0	$	537,261

The following table summarizes information about stock options outstanding and exercisable at December 31, 2021:


					Options Outstanding				Options Exercisable
						Weighted Average
						Remaining	Weighted		Number	Weighted
					Number	Contractual	Average		Exercisable	Average
Range of Exercise					Outstanding	Term	Exercise		(In	Exercise
Prices ($)					(In Thousands)	(Years)	Price ($)		Thousands)	Price ($)
$	15.71	-	$	17.99	1,395	1.4	$	17.77	1,395	$	17.77
$	18.64	-	$	23.35	1,562	2.1	$	23.08	1,562	$	23.08
$	36.05	-	$	36.05	9	3.0	$	36.05	9	$	36.05
$	37.10	-	$	43.99	2,280	4.3	$	43.47	2,272	$	43.47
$	44.73	-	$	45.16	1,410	3.4	$	45.10	1,410	$	45.10
$	45.55	-	$	54.45	1,491	5.5	$	48.21	1,058	$	47.43
$	55.14	-	$	57.95	153	7.1	$	56.90	36	$	56.57
$	58.73	-	$	58.73	2,054	6.2	$	58.73	1,084	$	58.73
$	58.77	-	$	58.77	4	6.6	$	58.77	2	$	58.77
$	59.67	-	$	97.80	3,502	8.1	$	69.29	816	$	60.56
					13,860	5.1	$	48.19	9,644	$	40.33

The weighted-average grant-date fair value of options granted during the years ended December 31, 2021, 2020 and 2019 was $25.80 per share, $18.82 per share and $20.17 per share, respectively. The total intrinsic value of options exercised during the years ended December 31, 2021, 2020 and 2019 was $51.2 million, $68.8 million and $220.2 million, respectively.

Cash received from option exercises under all plans for the years ended December 31, 2021, 2020 and 2019 was $45.7 million, $72.9 million and $92.4 million, respectively.

At December 31, 2021, there was $51.3 million of total unrecognized compensation expense related to non-vested options granted to employees under the Company’s share-based payment plans. That cost is expected to be recognized over a weighted-average period of 2.1 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, 2021	947	$	60.52
Granted 01/01/21 - 03/31/21¹	304	$	86.28
Granted 04/01/21 - 06/30/21	14	$	92.14
Granted 07/01/21 - 09/30/21	1	$	89.84
Granted 10/01/21 - 12/31/21	1	$	89.95
Vested	(344)	$	62.29
Forfeited/cancelled	(13)	$	60.41
Non-vested at December 31, 2021	910	$	69.02

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/or performance share units granted during the years ended December 31, 2021, 2020 and 2019 was $89.12, $62.97 and $59.79 per share, respectively. As of December 31, 2021, 0.8 million of restricted stock units and performance share units are expected to vest.

At December 31, 2021, total unrecognized compensation expense relating to non-vested restricted stock units and performance share units was $34.8 million, which is expected to be recognized over a weighted-average period of 1.9 years.

Other Share-Based Awards

The Company has granted other share-based awards to certain employees that are payable in cash. These awards are classified as liabilities and are valued based on the fair value of the award at the grant date and are remeasured at each reporting date until settlement with compensation expense being recognized in proportion to the completed requisite service period up until date of settlement. At December 31, 2021, other share-based awards outstanding included grants that vest over three years payable in the first quarters of 2022, 2023 and 2024.

At December 31, 2021, there was $0.7 million of total unrecognized compensation expense related to nonvested other share-based awards granted to employees under the Company’s stock-based compensation plans. That cost is expected to be recognized over a weighted-average period of 1.0 years.

Employee and Non-Employee Share-Based Compensation Expense

The table below shows the amounts recognized in the consolidated financial statements for the years ended December 31, 2021, 2020 and 2019 for share-based compensation related to employees and non-employees. Employee and non-employee share-based compensation expense of $70.5 million for the year ended December 31, 2021 is comprised of $8.3 million relating to incentive stock options, $1.6 million relating to other share-based awards and $60.6 million relating to non-qualified stock options, restricted units and performance units. Employee and non-employee share-based compensation expense of $70.3 million for the year ended December 31, 2020 is comprised of $9.4 million relating to incentive stock options, $2.7 million relating to other share-based awards and $58.2 million relating to non-qualified stock options, restricted units and performance units. Employee and non-employee share-based compensation expense of $63.4 million for the year ended December 31, 2019 is comprised of $10.0 million relating to incentive stock options and $53.4 million relating to non-qualified stock options and restricted units.


	2021		2020		2019
Operating expenses	$	70,483	$	70,289	$	63,356
Total employee and non-employee share-based compensation expense included in income, before income tax		70,483		70,289		63,356
Less: Amount of income tax benefit recognized in earnings		(14,228)		(15,499)		(36,326)
Amount charged against net income	$	56,255	$	54,790	$	27,030

STOCK-BASED COMPENSATION - Exercise Prices (Details) shares in Thousands	12 Months Ended
	Dec. 31, 2021 $ / shares shares
Stock options outstanding and stock options exercisable
Number Outstanding (in shares) \| shares	13,860
Options Outstanding, Weighted Average Remaining Contractual Term (Years)	5 years 1 month 6 days
Options Outstanding, Weighted Average Exercise Price (in dollars per share)	$ 48.19
Options Exercisable (in shares) \| shares	9,644
Options Exercisable, Weighted Average Exercise Price (in dollars per share)	$ 40.33
Range of Exercise Prices $15.71 - $17.99
Stock options outstanding and stock options exercisable
Stock options, range of exercise prices, low end of range (in dollars per share)	15.71
Stock options, range of exercise prices, high end of range (in dollars per share)	$ 17.99
Number Outstanding (in shares) \| shares	1,395
Options Outstanding, Weighted Average Remaining Contractual Term (Years)	1 year 4 months 24 days
Options Outstanding, Weighted Average Exercise Price (in dollars per share)	$ 17.77
Options Exercisable (in shares) \| shares	1,395
Options Exercisable, Weighted Average Exercise Price (in dollars per share)	$ 17.77
Range of Exercise Prices $18.64 - $23.35
Stock options outstanding and stock options exercisable
Stock options, range of exercise prices, low end of range (in dollars per share)	18.64
Stock options, range of exercise prices, high end of range (in dollars per share)	$ 23.35
Number Outstanding (in shares) \| shares	1,562
Options Outstanding, Weighted Average Remaining Contractual Term (Years)	2 years 1 month 6 days
Options Outstanding, Weighted Average Exercise Price (in dollars per share)	$ 23.08
Options Exercisable (in shares) \| shares	1,562
Options Exercisable, Weighted Average Exercise Price (in dollars per share)	$ 23.08
Range of Exercise Prices $36.05 - $36.05
Stock options outstanding and stock options exercisable
Stock options, range of exercise prices, low end of range (in dollars per share)	36.05
Stock options, range of exercise prices, high end of range (in dollars per share)	$ 36.05
Number Outstanding (in shares) \| shares	9
Options Outstanding, Weighted Average Remaining Contractual Term (Years)	3 years
Options Outstanding, Weighted Average Exercise Price (in dollars per share)	$ 36.05
Options Exercisable (in shares) \| shares	9
Options Exercisable, Weighted Average Exercise Price (in dollars per share)	$ 36.05
Range of Exercise Prices $37.10 - $43.99
Stock options outstanding and stock options exercisable
Stock options, range of exercise prices, low end of range (in dollars per share)	37.10
Stock options, range of exercise prices, high end of range (in dollars per share)	$ 43.99
Number Outstanding (in shares) \| shares	2,280
Options Outstanding, Weighted Average Remaining Contractual Term (Years)	4 years 3 months 18 days
Options Outstanding, Weighted Average Exercise Price (in dollars per share)	$ 43.47
Options Exercisable (in shares) \| shares	2,272
Options Exercisable, Weighted Average Exercise Price (in dollars per share)	$ 43.47
Range of Exercise Prices $44.73 - $45.16
Stock options outstanding and stock options exercisable
Stock options, range of exercise prices, low end of range (in dollars per share)	44.73
Stock options, range of exercise prices, high end of range (in dollars per share)	$ 45.16
Number Outstanding (in shares) \| shares	1,410
Options Outstanding, Weighted Average Remaining Contractual Term (Years)	3 years 4 months 24 days
Options Outstanding, Weighted Average Exercise Price (in dollars per share)	$ 45.10
Options Exercisable (in shares) \| shares	1,410
Options Exercisable, Weighted Average Exercise Price (in dollars per share)	$ 45.10
Range of Exercise Prices $45.55 - $54.45
Stock options outstanding and stock options exercisable
Stock options, range of exercise prices, low end of range (in dollars per share)	45.55
Stock options, range of exercise prices, high end of range (in dollars per share)	$ 54.45
Number Outstanding (in shares) \| shares	1,491
Options Outstanding, Weighted Average Remaining Contractual Term (Years)	5 years 6 months
Options Outstanding, Weighted Average Exercise Price (in dollars per share)	$ 48.21
Options Exercisable (in shares) \| shares	1,058
Options Exercisable, Weighted Average Exercise Price (in dollars per share)	$ 47.43
Range of Exercise Prices $55.14 - $57.95
Stock options outstanding and stock options exercisable
Stock options, range of exercise prices, low end of range (in dollars per share)	55.14
Stock options, range of exercise prices, high end of range (in dollars per share)	$ 57.95
Number Outstanding (in shares) \| shares	153
Options Outstanding, Weighted Average Remaining Contractual Term (Years)	7 years 1 month 6 days
Options Outstanding, Weighted Average Exercise Price (in dollars per share)	$ 56.90
Options Exercisable (in shares) \| shares	36
Options Exercisable, Weighted Average Exercise Price (in dollars per share)	$ 56.57
Range of Exercise Prices $58.73 - $58.73
Stock options outstanding and stock options exercisable
Stock options, range of exercise prices, low end of range (in dollars per share)	58.73
Stock options, range of exercise prices, high end of range (in dollars per share)	$ 58.73
Number Outstanding (in shares) \| shares	2,054
Options Outstanding, Weighted Average Remaining Contractual Term (Years)	6 years 2 months 12 days
Options Outstanding, Weighted Average Exercise Price (in dollars per share)	$ 58.73
Options Exercisable (in shares) \| shares	1,084
Options Exercisable, Weighted Average Exercise Price (in dollars per share)	$ 58.73
Range of Exercise Prices $58.77 - $58.77
Stock options outstanding and stock options exercisable
Stock options, range of exercise prices, low end of range (in dollars per share)	58.77
Stock options, range of exercise prices, high end of range (in dollars per share)	$ 58.77
Number Outstanding (in shares) \| shares	4
Options Outstanding, Weighted Average Remaining Contractual Term (Years)	6 years 7 months 6 days
Options Outstanding, Weighted Average Exercise Price (in dollars per share)	$ 58.77
Options Exercisable (in shares) \| shares	2
Options Exercisable, Weighted Average Exercise Price (in dollars per share)	$ 58.77
Range of Exercise Prices $59.67 - $97.80
Stock options outstanding and stock options exercisable
Stock options, range of exercise prices, low end of range (in dollars per share)	59.67
Stock options, range of exercise prices, high end of range (in dollars per share)	$ 97.80
Number Outstanding (in shares) \| shares	3,502
Options Outstanding, Weighted Average Remaining Contractual Term (Years)	8 years 1 month 6 days
Options Outstanding, Weighted Average Exercise Price (in dollars per share)	$ 69.29
Options Exercisable (in shares) \| shares	816
Options Exercisable, Weighted Average Exercise Price (in dollars per share)	$ 60.56

EARNINGS PER SHARE (Tables)

12 Months Ended

Dec. 31, 2021

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 for the years ended December 31, 2021, 2020 and 2019 is presented below (in thousands):




	2021	2020	2019
Weighted-average shares outstanding:
Basic	528,763	529,639	542,191
Dilutive securities	6,876	5,168	4,417
Diluted	535,639	534,807	546,608

INVENTORIES (Tables)

12 Months Ended

Dec. 31, 2021

INVENTORIES

Schedule of inventories


	2021		2020
Raw materials	$	349,865	$	155,166
Finished goods		243,492		177,919
	$	593,357	$	333,085

INCOME TAXES - Deferred Taxes (Details) - USD ($) $ in Thousands	3 Months Ended	12 Months Ended
	Dec. 31, 2020	Dec. 31, 2021	Dec. 31, 2020	Dec. 31, 2019
Deferred Tax Assets:
Reserve for sales returns	$ 275	$ 889	$ 275
Reserve for inventory obsolescence	2,366	3,643	2,366
Reserve for marketing development fund	9,629	8,951	9,629
Capitalization of inventory costs	3,365	2,533	3,365
State franchise tax - current	4,229	2,493	4,229
Accrued compensation	1,284	2,854	1,284
Accrued other liabilities	7,464	4,634	7,464
Deferred revenue	75,592	68,557	75,592
Stock-based compensation	23,370	24,635	23,370
Foreign net operating loss carryforward	21,626	14,507	21,626
Prepaid supplies	5,551	6,317	5,551
Termination payments	63,009	58,042	63,009
Operating lease liabilities	4,434	4,711	4,434
Intangibles	87,687	72,666	87,687
Impairment-trademarks and others	2,055	2,047	2,055
Other deferred tax assets	27,164	33,013	27,164
Total gross deferred tax assets	339,100	310,492	339,100
Deferred Tax Liabilities:
Amortization of trademarks	(42,161)	(41,517)	(42,161)
State franchise tax - deferred	(6,318)	(5,505)	(6,318)
Operating lease ROU assets	(4,434)	(4,711)	(4,434)
Other deferred tax liabilities	(58)	(618)	(58)
Depreciation	(9,363)	(5,907)	(9,363)
Total gross deferred tax liabilities	(62,334)	(58,258)	(62,334)
Valuation Allowance	(35,116)	(27,013)	(35,116)
Net deferred tax assets	241,650	225,221	241,650
Increase to provision for income taxes		8,100	$ 5,400	$ 3,700
Net operating loss carryforwards		60,500
Net operating loss carryforwards subject to indefinite carryforward		35,200
Net operating loss carryforwards that begin to expire in 2022		$ 25,300
Recognized deferred tax assets	$ 165,100

DEBT

12 Months Ended

Dec. 31, 2021

DEBT

DEBT

11. DEBT

The Company entered into a credit facility with Comerica Bank (“Comerica”) consisting of a revolving line of credit, which was amended in April 2020, under which the Company may borrow up to $10.0 million of non-collateralized debt. The revolving line of credit is effective through June 1, 2025. Interest on borrowings under the line of credit is based on Comerica’s base (prime) rate minus 1.00% to 1.50%, or London Interbank Offered Rates plus an additional percentage of 1.25% to 1.75%, depending upon certain financial ratios maintained by the Company. The Company had no outstanding borrowings on this line of credit at December 31, 2021. Under this revolving line of credit, the Company may also issue standby Letters of Credit with an aggregate amount of up to $4.0 million. The fee on the standby Letters of Credit ranges from 1.00% to 1.50% depending upon certain financial ratios maintained by the Company. The Company had no outstanding standby Letters of Credit at December 31, 2021.

The Company has a credit facility with HSBC Bank (China) Company Limited, Shanghai Branch, of $15.0 million. At December 31, 2021, the interest rate on borrowings under the line of credit was 5.5%. As of December 31, 2021, $5.8 million was outstanding on this line of credit.

- Definition

The entire disclosure for information about short-term and long-term debt arrangements, which includes amounts of borrowings under each line of credit, note payable, commercial paper issue, bonds indenture, debenture issue, own-share lending arrangements and any other contractual agreement to repay funds, and about the underlying arrangements, rationale for a classification as long-term, including repayment terms, interest rates, collateral provided, restrictions on use of assets and activities, whether or not in compliance with debt covenants, and other matters important to users of the financial statements, such as the effects of refinancing and noncompliance with debt covenants.

+ References

Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 470
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Reference 2: http://www.xbrl.org/2003/role/disclosureRef
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-Name Accounting Standards Codification
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-URI http://asc.fasb.org/extlink&oid=120395691&loc=d3e23780-122690

Reference 7: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
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Reference 9: http://www.xbrl.org/2003/role/disclosureRef
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-URI http://asc.fasb.org/extlink&oid=123466505&loc=SL123495334-112611

Reference 10: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
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Reference 11: http://www.xbrl.org/2003/role/disclosureRef
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-Topic 470
-SubTopic 20
-Section 50
-Paragraph 1B
-URI http://asc.fasb.org/extlink&oid=123466505&loc=SL123495323-112611

Reference 12: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 470
-SubTopic 20
-Section 50
-Paragraph 1I
-Subparagraph (b)
-URI http://asc.fasb.org/extlink&oid=123466505&loc=SL123495371-112611

Reference 13: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 470
-SubTopic 20
-Section 50
-Paragraph 1B
-Subparagraph (i)
-URI http://asc.fasb.org/extlink&oid=123466505&loc=SL123495323-112611

+ Details

LEASES - ROU assets for operating and finance leases (Details) - USD ($) $ in Thousands	Dec. 31, 2021	Dec. 31, 2020
ROU assets for operating and finance leases
Operating leases	$ 23,157	$ 22,754
Finance leases	$ 2,646	$ 2,120
Operating Lease, Right-of-Use Asset, Statement of Financial Position [Extensible List]	Other Assets, Noncurrent	Other Assets, Noncurrent
Finance Lease, Right-of-Use Asset, Statement of Financial Position [Extensible List]	Property, Plant and Equipment, Net	Property, Plant and Equipment, Net
Real Estate
ROU assets for operating and finance leases
Operating leases	$ 22,518	$ 22,565
Equipment Lease
ROU assets for operating and finance leases
Operating leases	639	189
Finance leases	$ 2,646	$ 2,120

ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

12 Months Ended

Dec. 31, 2021

ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

1. ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

Organization – Monster Beverage Corporation (the “Company”) was incorporated in the state of Delaware. The Company is a holding company and has no operating business except through its consolidated subsidiaries.

Nature of Operations – The Company develops, markets, sells and distributes energy drink beverages and concentrates for energy drink beverages, primarily under the following brand names: Monster Energy®, Monster Energy Ultra®, Rehab® Monster, Java Monster®, Muscle Monster®, Espresso Monster®, Punch Monster®, Juice Monster®, Monster Hydro® Energy Water, Monster Hydro® Super Sport, Monster HydroSport Super Fuel®, Monster Super Fuel®, Monster Dragon Tea®, Reign Total Body Fuel®, Reign Inferno® Thermogenic Fuel, NOS®, Full Throttle®, Burn®, Mother®, Nalu®, Ultra Energy®, Play® and Power Play® (stylized), Relentless®, BPM®, BU®, Gladiator®, Samurai®, Live+®, Predator®, Fury® and True North®.

Basis of Presentation – The accompanying consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America (“GAAP”) and include the accounts of the Company and its consolidated subsidiaries.

Principles of Consolidation – The Company consolidates all entities that it controls by ownership of a majority voting interest. All intercompany balances and transactions have been eliminated in consolidation.

Business Combinations – Business acquisitions are accounted for in accordance with Financial Accounting Standards Board (“FASB”) Accounting Standards Codification (“ASC”) 805 “Business Combinations”. FASB ASC 805 requires the reporting entity to identify the acquirer, determine the acquisition date, recognize and measure the identifiable tangible and intangible assets acquired, the liabilities assumed and any non-controlling interest in the acquired entity, and recognize and measure goodwill or a gain from the purchase. The acquiree’s results are included in the Company’s consolidated financial statements from the date of acquisition. Assets acquired and liabilities assumed are recorded at their fair values and the excess of the purchase price over the amounts assigned is recorded as goodwill. Adjustments to fair value assessments are recorded to goodwill over the measurement period (not longer than twelve months). The acquisition method also requires that acquisition-related transaction and post-acquisition restructuring costs be charged to expense and requires the Company to recognize and measure certain assets and liabilities including those arising from contingencies and contingent consideration in a business combination.

Cash and Cash Equivalents – The Company considers all highly liquid investments with an original maturity of three months or less from date of purchase to be cash equivalents. Throughout the year, the Company has had amounts on deposit at financial institutions that exceed the federally insured limits. The Company has not experienced any loss as a result of these deposits and does not expect to incur any losses in the future.

Investments – The Company’s investments in debt securities are classified as either held-to-maturity, available-for-sale or trading, in accordance with FASB ASC 320. Held-to-maturity securities are those securities that the Company has the positive intent and ability to hold until maturity. Trading securities are those securities that the Company intends to sell in the near term. All other securities not included in the held-to-maturity or trading category are classified as available-for-sale. Held-to-maturity securities are recorded at amortized cost which approximates fair market value. Trading securities are carried at fair value with unrealized gains and losses charged to earnings. Available-for-sale securities are carried at fair value with unrealized gains and losses recorded within accumulated other comprehensive income (loss) as a separate component of stockholders’ equity. FASB ASC 820 defines fair value as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. FASB ASC 820 also establishes a fair value hierarchy which requires an entity to maximize the use of observable inputs, where available. Under FASB ASC 326-30-35, a security is considered to be impaired if the fair value of the security is less than its amortized cost basis. Where the decline in fair value below the amortized cost basis has resulted from a credit loss, the Company will record an impairment relating to credit losses through an allowance for credit losses. The allowance is limited by the amount that the fair value is less than the amortized cost basis. Impairment that has not been recorded through an allowance for credit losses is recorded through other comprehensive income (loss), net of applicable taxes. The Company evaluates whether the decline in fair value of its investments has resulted from credit loss or other factors at each quarter-end. This evaluation consists of a review by management, and includes market pricing information and maturity dates for the securities held, market and economic trends in the industry and information on the issuer’s financial condition and, if applicable, information on the guarantors’ financial condition. Factors considered in determining whether an impairment has resulted from credit loss or other factors include the length of time and extent to which the investment’s fair value has been less than its cost basis, the financial condition and near-term prospects of the issuer and guarantors, including any specific events which may influence the operations of the issuer and the Company’s intent and ability to retain the investment for a reasonable period of time sufficient to allow for any anticipated recovery of fair value.

Accounts Receivable – The Company evaluates the collectability of its trade accounts receivable based on a number of factors. In circumstances where the Company becomes aware of a specific customer’s inability to meet its financial obligations to the Company, a specific reserve for bad debts is estimated and recorded, which reduces the recognized receivable to the estimated amount the Company believes will ultimately be collected. In addition to specific customer identification of potential bad debts, bad debt charges are recorded based on the Company’s recent loss history and an overall assessment of past due trade accounts receivable outstanding. In accordance with FASB ASC 210-20-45, in its consolidated balance sheets, the Company has presented accounts receivable, net of promotional allowances, only for those customers that it allows net settlement. All other accounts receivable and related promotional allowances are shown on a gross basis.

Inventories – Inventories are valued at the lower of first-in, first-out, cost or market value (net realizable value).

Property and Equipment – Property and equipment are stated at cost. Depreciation of furniture and fixtures, office and computer equipment, computer software, equipment, real property and vehicles is based on their estimated useful lives (three to thirty years) and is calculated using the straight-line method. Amortization of leasehold improvements is based on the lesser of their estimated useful lives or the terms of the related leases and is calculated using the straight-line method. Normal repairs and maintenance costs are expensed as incurred. Expenditures that materially increase values or extend useful lives are capitalized. The related costs and accumulated depreciation of disposed assets are eliminated and any resulting gain or loss on disposition is included in net income.

Goodwill – The Company records goodwill when the consideration paid for an acquisition exceeds the fair value of net tangible and intangible assets acquired, including related tax effects. Goodwill is not amortized; instead, goodwill is tested for impairment on an annual basis, or more frequently if the Company believes indicators of impairment exist. The Company first assesses qualitative factors to determine whether it is more-likely-than-not that the fair value of a reporting unit is less than its carrying value. If the Company reasonably determines that it is more-likely-than-not that the fair value is less than the carrying value, the Company performs its annual, or interim, goodwill impairment test by comparing the fair value of a reporting unit with its carrying amount. The Company will recognize an impairment for the amount by which the carrying amount exceeds a reporting unit’s fair value. For the years ended December 31, 2021, 2020 and 2019 there were no impairments recorded and there are no accumulated impairment balances.

Other Intangibles – Other Intangibles are comprised primarily of trademarks that represent the Company’s exclusive ownership of the Monster Energy®, ®, Monster Energy Ultra®, Monster Dragon Tea®, Unleash the Beast!®, Rehab® Monster, Java Monster®, Muscle Monster®, Espresso Monster®, Punch Monster®, Juice Monster®, Monster Hydro®, Monster HydroSport Super Fuel®, Monster Super Fuel®, Reign Total Body Fuel®, Reign Inferno®, Predator®, Fury®, True North®, NOS®, Full Throttle®, Burn®, Mother®, Nalu®, Ultra Energy®, Play® and Power Play® (stylized), Relentless®, BPM®, BU®, Gladiator®, and Samurai® trademarks, all used in connection with the manufacture, sale and distribution of beverages. The Company also owns a number of other trademarks, flavors and formulas in the United States, as well as in a number of countries around the world. In accordance with FASB ASC 350, intangible assets with indefinite lives are not amortized but instead are measured for impairment at least annually, or when events indicate that an impairment exists. The Company calculates impairment as the excess of the carrying value of its indefinite-lived assets over their estimated fair value. If the carrying value exceeds the estimate of fair value a write-down is recorded. The Company amortizes its trademarks with finite useful lives over their respective useful lives. For the years ended December 31, 2021 and 2019 no impairments were recorded. For the year ended December 31, 2020, an impairment charge of $8.7 million was recorded to intangibles.

Leases – See Note 3.

Long-Lived Assets – Management regularly reviews property and equipment and other long-lived assets, including certain definite-lived intangible assets, for possible impairment. This review occurs annually, or more frequently if events or changes in circumstances indicate the carrying amount of the asset may not be recoverable. If there is indication of impairment, management then prepares an estimate of future cash flows (undiscounted and without interest charges) expected to result from the use of the asset and its eventual disposition. If these cash flows are less than the carrying amount of the asset, an impairment loss is recognized to write down the asset to its estimated fair value. The fair value is estimated using the present value of the future cash flows discounted at a rate commensurate with management’s estimates of the business risks. Preparation of estimated expected future cash flows is inherently subjective and is based on management’s best estimate of assumptions concerning expected future conditions. For the years ended December 31, 2021, 2020 and 2019, there were no impairment indicators identified. Long-lived assets held for sale are recorded at the lower of their carrying amount or fair value less cost to sell.

Foreign Currency Translation and Transactions – The accounts of the Company’s foreign subsidiaries are translated in accordance with FASB ASC 830. Foreign currency transaction gains and losses are recognized in other expense, net, at the time they occur. Net foreign currency exchange gains or losses resulting from the translation of assets and liabilities of foreign subsidiaries whose functional currency is not the U.S. dollar are recorded as a part of accumulated other comprehensive income (loss) in stockholders’ equity. Unrealized foreign currency exchange gains and losses on certain intercompany transactions that are of a long-term investment nature (i.e., settlement is not planned or anticipated in the foreseeable future) are also recorded in accumulated other comprehensive income (loss) in stockholders’ equity. During the years ended December 31, 2021, 2020 and 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 outstanding as of December 31, 2021 have terms of three months or less. The Company does not enter into forward currency exchange contracts for speculation or trading purposes.

The Company has not designated its foreign currency exchange contracts as hedge transactions under FASB ASC 815. Therefore, gains and losses on the Company’s foreign currency exchange contracts are recognized in other income, net, in the consolidated statements of income, and are largely offset by the changes in the fair value of the underlying economically hedged item. For the years ended December 31, 2021, 2020 and 2019, aggregate foreign currency transaction gains (losses), including the gains or losses on forward currency exchange contracts, amounted to $0.3 million, ($11.2) million and ($4.1) million, respectively, and have been recorded in other income, net, in the accompanying consolidated statements of income.

Revenue Recognition – See Note 2.

Cost of Sales – Cost of sales consists of the costs of flavors, concentrates, supplement ingredients and/or beverage bases, the costs of raw materials utilized in the manufacture of beverages, co-packing fees, repacking fees, in-bound freight charges, as well as internal transfer costs, warehouse expenses incurred prior to the manufacture of the Company’s finished products and certain quality control costs. In addition, the Company includes in costs of sales certain costs such as depreciation, amortization and payroll costs that relate to the direct manufacture by the Company of certain flavors and concentrates. Raw materials account for the largest portion of cost of sales. Raw materials include cans, bottles, other containers, flavors, ingredients and packaging materials.

Operating Expenses – Operating expenses include selling expenses such as distribution expenses to transport products to customers and warehousing expenses after manufacture, as well as expenses for advertising, sampling and in-store demonstration costs, costs for merchandise displays, point-of-sale materials and premium items, sponsorship expenses, other marketing expenses and design expenses. Operating expenses also include such costs as payroll costs, travel costs, professional service fees including legal fees, termination payments made to certain of the Company’s prior distributors, depreciation and other general and administrative costs.

Freight-Out Costs – For the years ended December 31, 2021, 2020 and 2019, freight-out costs amounted to $213.9 million, $134.1 million and $122.5 million, respectively, and have been recorded in operating expenses in the accompanying consolidated statements of income.

Advertising and Promotional Expenses – The Company accounts for advertising production costs by expensing such production costs the first time the related advertising takes place. A significant amount of the Company’s promotional expenses result from payments under endorsement and sponsorship contracts. Accounting for endorsement and sponsorship payments is based upon specific contract provisions. Generally, endorsement and sponsorship payments are expensed on a straight-line basis over the term of the contract after giving recognition to the periodic performance compliance provisions of the contracts. Advertising and promotional expenses, including, but not limited to, production costs amounted to $417.6 million, $345.7 million and $391.6 million for the years ended December 31, 2021, 2020 and 2019, respectively. Advertising and promotional expenses are included in operating expenses in the accompanying consolidated statements of income.

Income Taxes – The Company utilizes the liability method of accounting for income taxes as set forth in FASB ASC 740. Under the liability method, deferred taxes are determined based on the temporary differences between the financial statement and tax basis of assets and liabilities using tax rates expected to be in effect during the years in which the basis differences reverse. A valuation allowance is recorded when it is more likely than not that some of the deferred tax assets will not be realized. In determining the need for valuation allowances the Company considers projected future taxable income and the availability of tax planning strategies. If in the future the Company determines that it would not be able to realize its recorded deferred tax assets, an increase in the valuation allowance would be recorded, decreasing earnings in the period in which such determination is made.

The Company assesses its income tax positions and records tax benefits for all years subject to examination based upon the Company’s evaluation of the facts, circumstances and information available at the reporting date. For those tax positions where there is a greater than 50% likelihood that a tax benefit will be sustained, the Company has recorded the largest amount of tax benefit that may potentially be realized upon ultimate settlement with a taxing authority that has full knowledge of all relevant information. For those income tax positions where there is less than 50% likelihood that a tax benefit will be sustained, no tax benefit has been recognized in the financial statements.

Stock-Based Compensation – The Company accounts for stock-based compensation under the provisions of FASB ASC 718. The Company records compensation expense for employee stock options based on the estimated fair value of the options on the date of grant using the Black-Scholes-Merton option pricing formula. The Company records compensation expense for non-employee stock options based on the estimated fair value of the options as of the earlier of (1) the date at which a commitment for performance by the non-employee to earn the stock option is reached or (2) the date at which the non-employee’s performance is complete, using the Black-Scholes-Merton option pricing formula. Stock-based compensation cost for restricted stock 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. See Note 15.

Net Income Per Common Share – In accordance with FASB ASC 260, net income per common share, on a basic and diluted basis, is presented for all periods. Basic net income per share is computed by dividing net income by the weighted average number of common shares outstanding during each period. Diluted net income per share is computed by dividing net income by the weighted average number of common and dilutive common equivalent shares outstanding. The calculation of common equivalent shares assumes the exercise of dilutive stock options, net of assumed treasury share repurchases at average market prices, as applicable.

Concentration of Risk – Certain of the Company’s products utilize components (raw materials and/or co-packing services) from a limited number of sources. A disruption in the supply of such components could significantly affect the Company’s revenues from those products, as alternative sources of such components may not be available at commercially reasonable rates or within a reasonably short time period. The Company continues to endeavor to secure the availability of alternative sources for such components and minimize the risk of any disruption in production.

The Coca-Cola Company (“TCCC”), through certain wholly-owned subsidiaries (the “TCCC Subsidiaries”), accounted for approximately 2%of the Company’s net sales for the years ended December 31, 2021, 2020 and 2019.

Coca-Cola Consolidated, Inc. accounted for approximately 12%, 12% and 13% of the Company’s net sales for the years ended December 31, 2021, 2020 and 2019, respectively.

Reyes Coca-Cola Bottling, LLC accounted for approximately 10%, 11% and 11% of the Company’s net sales for the years ended December 31, 2021, 2020 and 2019, respectively.

Coca-Cola Europacific Partners accounted for approximately 12%, 10% and 10% of the Company’s net sales for the years ended December 31, 2021, 2020 and 2019, respectively.

Credit Risk – The Company sells its products nationally and internationally, primarily to bottlers and full service beverage distributors, 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 performs ongoing credit evaluations of its customers and generally does not require collateral. The Company maintains reserves for estimated credit losses, and historically, such losses have been within management’s expectations.

Fair Value of Financial Instruments – The carrying value of the Company’s financial instruments, including cash and cash equivalents, accounts receivable, accounts payable and accrued liabilities, approximate fair value due to the relatively short maturity of the respective instruments.

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

Recent Accounting Pronouncements – In October 2021, the FASB issued Accounting Standards Update (“ASU”) No. 2021-08, “Accounting for Contract Assets and Contract Liabilities from Contracts with Customers (Topic 805)”. ASU No. 2021-08 requires an acquirer in a business combination to recognize and measure contract assets and contract liabilities (deferred revenue) from acquired contracts using the revenue recognition guidance in Topic 606. At the acquisition date, the acquirer applies the revenue model as if it had originated the acquired contracts. The ASU is effective for annual periods beginning after December 15, 2022, including interim periods within those fiscal years. Adoption of the ASU should be applied prospectively. Early adoption is also permitted, including adoption in an interim period. If early adopted, the amendments are applied retrospectively to all business combinations for which the acquisition date occurred during the fiscal year of adoption. The Company is currently evaluating the impact of ASU No. 2021-08 on its financial position, results of operations and liquidity.

EARNINGS PER SHARE

12 Months Ended

Dec. 31, 2021

EARNINGS PER SHARE

EARNINGS PER SHARE

17. EARNINGS PER SHARE




	2021	2020	2019
Weighted-average shares outstanding:
Basic	528,763	529,639	542,191
Dilutive securities	6,876	5,168	4,417
Diluted	535,639	534,807	546,608

For the years ended December 31, 2021, 2020 and 2019, options and awards outstanding totaling 0.8 million shares, 1.8 million shares and 4.4 million shares, respectively, were excluded from the calculations as their effect would have been antidilutive.

ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Concentration of Risk (Details) - Customer concentration - Sales	12 Months Ended
	Dec. 31, 2021	Dec. 31, 2020	Dec. 31, 2019
TCCC
Concentration of risk
Percentage of net sales	2.00%	2.00%	2.00%
Coca-Cola Consolidated, Inc
Concentration of risk
Percentage of net sales	12.00%	12.00%	13.00%
Reyes Coca-Cola Bottling
Concentration of risk
Percentage of net sales	10.00%	11.00%	11.00%
Coca-Cola European Partners
Concentration of risk
Percentage of net sales	12.00%	10.00%	10.00%

ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies)

12 Months Ended

Dec. 31, 2021

ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

Basis of Presentation

Principles of Consolidation

Business Combinations

Cash and Cash Equivalents

Investments

Accounts Receivable

Inventories

Inventories – Inventories are valued at the lower of first-in, first-out, cost or market value (net realizable value).

Property and Equipment

Goodwill

Other Intangibles

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 ASC 842, “Leases”. 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 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 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 consolidated statement of income. Interest expense on finance leases is calculated using the amortized cost basis and is included in other income (expense), net in the consolidated statement of income.

The Company’s leases have remaining lease terms of less than one year to 12 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.

Long-Lived Assets

Foreign Currency Translation and Transactions

Revenue Recognition

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.

●

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

●

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;

●

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

Cost of Sales

Operating Expenses

Freight-Out Costs

Advertising and Promotional Expenses

Income Taxes

Stock-Based Compensation

Net Income Per Common Share

Concentration of Risk

Coca-Cola Consolidated, Inc. accounted for approximately 12%, 12% and 13% of the Company’s net sales for the years ended December 31, 2021, 2020 and 2019, respectively.

Reyes Coca-Cola Bottling, LLC accounted for approximately 10%, 11% and 11% of the Company’s net sales for the years ended December 31, 2021, 2020 and 2019, respectively.

Coca-Cola Europacific Partners accounted for approximately 12%, 10% and 10% of the Company’s net sales for the years ended December 31, 2021, 2020 and 2019, respectively.

Credit Risk

Fair Value of Financial Instruments

Use of Estimates

Recent Accounting Pronouncements

ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Other Intangibles (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2021	Dec. 31, 2020	Dec. 31, 2019
ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
Loss on impairment of intangibles	$ 0	$ 8,700	$ 0

EMPLOYEE BENEFIT PLAN (Details) - Employee 401(k) Plan - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2021	Dec. 31, 2020	Dec. 31, 2019
Employee Benefit Plant
Employer matching contribution as a percentage of the employee's contribution	50.00%
Percent of employee's earnings eligible for employer matching contribution	8.00%
Vesting period of contribution by the company	4 years
Matching contributions by the company	$ 5.5	$ 4.7	$ 3.4
2 years of service
Employee Benefit Plant
Percentage of award vesting	50.00%
3 years of service
Employee Benefit Plant
Percentage of award vesting	75.00%
4 years of service
Employee Benefit Plant
Percentage of award vesting	100.00%

DERIVATIVE INSTRUMENTS AND HEDGING ACTIVITIES

12 Months Ended

Dec. 31, 2021

DERIVATIVE INSTRUMENTS AND HEDGING ACTIVITIES

DERIVATIVE INSTRUMENTS AND HEDGING ACTIVITIES

6. DERIVATIVE INSTRUMENTS AND HEDGING ACTIVITIES

The Company is exposed to foreign currency exchange rate risks related primarily to its foreign business operations. During the years ended December 31, 2021, 2020 and 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 entered into by the Company that were outstanding as of December 31, 2021 have terms of three months or less. The Company does not enter into forward currency exchange contracts for speculation or trading purposes.

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


December 31, 2021
Derivatives not designated as
hedging instruments under	Notional		Fair
FASB ASC 815-20	Amount		Value		Balance Sheet Location
Assets:
Foreign currency exchange contracts:
Receive SGD/pay USD	$	16,544	$	297	Accounts receivable, net
Receive USD/pay COP		9,754		296	Accounts receivable, net
Receive RSD/pay USD		9,837		46	Accounts receivable, net
Receive USD/pay RUB		7,175		15	Accounts receivable, net

Liabilities:
Foreign currency exchange contracts:
Receive USD/pay GBP	$	29,929	$	(666)	Accrued liabilities
Receive USD/pay AUD		2,602		(88)	Accrued liabilities
Receive USD/pay CNY		12,230		(74)	Accrued liabilities
Receive USD/pay NZD		2,693		(45)	Accrued liabilities
Receive USD/pay EUR		3,045		(29)	Accrued liabilities
Receive USD/pay ZAR		4,140		(21)	Accrued liabilities
Receive USD/pay DKK		1,461		(9)	Accrued liabilities


December 31, 2020
Derivatives not designated as
hedging instruments under	Notional		Fair
FASB ASC 815-20	Amount		Value		Balance Sheet Location
Assets:
Foreign currency exchange contracts:
Receive SGD/pay USD	$	18,713	$	41	Accounts receivable, net
Receive RSD/pay USD		10,127		28	Accounts receivable, net

Liabilities:
Foreign currency exchange contracts:
Receive EUR/pay USD	$	1,298,899	$	(1,768)	Accrued liabilities
Receive USD/pay GBP		35,256		(416)	Accrued liabilities
Receive USD/pay AUD		8,508		(130)	Accrued liabilities
Receive USD/pay ZAR		2,403		(106)	Accrued liabilities
Receive USD/pay COP		5,436		(93)	Accrued liabilities
Receive USD/pay CNY		12,344		(50)	Accrued liabilities
Receive USD/pay RUB		7,780		(40)	Accrued liabilities
Receive NOK/pay USD		4,411		(18)	Accrued liabilities
Receive USD/pay NZD		2,290		(13)	Accrued liabilities
Receive SEK/pay USD		2,275		(10)	Accrued liabilities
Receive USD/pay DKK		3,151		(3)	Accrued liabilities

The net gain (loss) on derivative instruments in the consolidated statements of income was as follows:


		Amount of gain (loss)
		recognized in income on
		derivatives
Derivatives not designated as	Location of gain (loss)	Year ended
hedging instruments under	recognized in income on	December 31,		December 31,		December 31,
FASB ASC 815-20	derivatives	2021		2020		2019
Foreign currency exchange contracts	Other income (expense), net	$	(5,445)	$	(3,317)	$	(2,555)

GOODWILL AND OTHER INTANGIBLE ASSETS

12 Months Ended

Dec. 31, 2021

GOODWILL AND OTHER INTANGIBLE ASSETS

GOODWILL AND OTHER INTANGIBLE ASSETS

9. GOODWILL AND OTHER INTANGIBLE ASSETS

The following is a roll-forward of goodwill for the years ended December 31, 2021 and 2020 by reportable segment:


	Monster
	Energy®		Strategic
	Drinks		Brands		Other		Total
Balance at December 31, 2020	$	693,644	$	637,999	$	—	$	1,331,643
Acquisitions		—		—		—		—
Balance at December 31, 2021	$	693,644	$	637,999	$	—	$	1,331,643


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

Intangible assets consist of the following at:


	December 31,		December 31,
	2021		2020
Amortizing intangibles	$	66,872	$	66,875
Accumulated amortization		(61,227)		(56,801)
		5,645		10,074
Non-amortizing intangibles		1,066,741		1,048,972
	$	1,072,386	$	1,059,046

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 $4.4 million, $7.7 million and $11.6 million for the years ended December 31, 2021, 2020 and 2019, respectively. No impairment was recorded for the years ended December 31, 2021 and 2019. Total impairment recorded was $8.7 million for the year ended December 31, 2020.

The following is the future estimated amortization expense related to amortizing intangibles as of December 31, 2021:


Year Ending December 31:

2022	$	4,405
2023		1,112
2024		14
2025		13
2026		13
2027 and thereafter		88
	$	5,645

At December 31, 2021, non-amortizing intangibles primarily consist of indefinite-lived tradenames, flavors and formulas.

RELATED PARTY TRANSACTIONS

12 Months Ended

Dec. 31, 2021

RELATED PARTY TRANSACTIONS

RELATED PARTY TRANSACTIONS

20. RELATED PARTY TRANSACTIONS

TCCC controls approximately 19.3% of the voting interests of the Company. The TCCC Subsidiaries, the TCCC Related Parties and certain TCCC independent bottlers, purchase and distribute the Company’s products in domestic and certain international markets. The Company also pays TCCC a commission based on certain sales within the TCCC distribution network.

TCCC commissions, based on sales to the TCCC Subsidiaries and the TCCC Related Parties, for the year ended December 31, 2021 were $77.5 million, and are included as a reduction to net sales. TCCC commissions, based on sales to the TCCC Independent Bottlers for the year ended December 31, 2021 were $28.7 million, and are included in operating expenses in the consolidated statements of income.

TCCC commissions, based on sales to the TCCC Subsidiaries and the TCCC Related Parties, for the year ended December 31, 2020 were $56.5 million, and are included as a reduction to net sales. TCCC commissions, based on sales to the TCCC Independent Bottlers for the year ended December 31, 2020 were $21.4 million, and are included in operating expenses in the consolidated statements of income.

TCCC commissions, based on sales to the TCCC Subsidiaries and the TCCC Related Parties, for the year ended December 31, 2019 were $50.1 million, and are included as a reduction to net sales. TCCC commissions, based on sales to the TCCC Independent Bottlers for the year ended December 31, 2019 were $17.7 million, and are included in operating expenses in the consolidated statements of income.

Net sales to the TCCC Subsidiaries for the years ended December 31, 2021, 2020 and 2019 were $120.4 million, $83.3 million and $79.5 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 $27.2 million, $23.9 million and $25.4 million for the years ended December 31, 2021, 2020 and 2019, respectively.

Certain TCCC Subsidiaries also contract manufacture certain of the Company’s energy drinks. Such contract manufacturing expenses were $31.5 million, $17.2 million and $17.1 million for the years ended December 31, 2021, 2020 and 2019, respectively.

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


	December 31,		December 31,
	2021		2020
Accounts receivable, net	$	94,647	$	44,925
Accounts payable	$	(35,248)	$	(30,792)
Accrued promotional allowances	$	(4,536)	$	(5,834)
Accrued liabilities	$	(26,616)	$	(15,446)

In 2021, TCCC exercised its contract rights and began an examination in accordance with those rights for the years ended December 31, 2015 through December 31,2020.

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 years ended December 31, 2021, 2020 and 2019 were $3.6 million, $2.1 million and $1.5 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. During the year ended December 31, 2021, the Company recorded an equity loss of $0.2 million. As of December 31, 2021, the Company’s equity investment is $1.4 million and is included in other assets (non-current) in the accompanying consolidated balance sheet at December 31, 2021.

INVESTMENTS

12 Months Ended

Dec. 31, 2021

INVESTMENTS

INVESTMENTS

4. INVESTMENTS

The following table summarizes the Company’s investments at:


									Continuous		Continuous
			Gross		Gross				Unrealized		Unrealized
			Unrealized		Unrealized				Loss Position		Loss Position
	Amortized		Holding		Holding		Fair		less than 12		greater than 12
December 31, 2021	Cost		Gains		Losses		Value		Months		Months
Available-for-sale
Short-term:
Commercial paper	$	334,077	$	—	$	—	$	334,077	$	—	$	—
Certificates of deposit		44,502		—		—		44,502		—		—
Municipal securities		666		—		—		666		—		—
U.S. government agency securities		62,687		—		26		62,661		26		—
U.S. treasuries		1,308,536		2		717		1,307,821		717		—
Long-term:
U.S. government agency securities		12,500		—		24		12,476		24		—
U.S. treasuries		87,133		—		190		86,943		190		—
Total	$	1,850,101	$	2	$	957	$	1,849,146	$	957	$	—


									Continuous		Continuous
			Gross		Gross				Unrealized		Unrealized
			Unrealized		Unrealized				Loss Position		Loss Position
	Amortized		Holding		Holding		Fair		less than 12		greater than 12
December 31, 2020	Cost		Gains		Losses		Value		Months		Months
Available-for-sale
Short-term:
Commercial paper	$	119,886	$	—	$	—	$	119,886	$	—	$	—
Certificates of deposit		20,387		—		—		20,387		—		—
Municipal securities		9,083		—		—		9,083		—		—
U.S. government agency securities		81,521		13		3		81,531		3		—
U.S. treasuries		650,386		150		69		650,467		69		—
Long-term:
U.S. government agency securities		10,350		1		—		10,351		—		—
U.S. treasuries		33,946		1		7		33,940		7		—
Total	$	925,559	$	165	$	79	$	925,645	$	79	$	—

During the years ended December 31, 2021, 2020 and 2019, realized gains or losses recognized on the sale of investments were not significant.

The Company’s investments at December 31, 2021 and 2020 carried investment grade credit ratings.

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


	December 31, 2021				December 31, 2020
	Amortized Cost		Fair Value		Amortized Cost		Fair Value
Less than 1 year:
Commercial paper	$	334,077	$	334,077	$	119,886	$	119,886
Municipal securities		666		666		9,083		9,083
U.S. government agency securities		62,687		62,661		81,521		81,531
Certificates of deposit		44,502		44,502		20,387		20,387
U.S. treasuries		1,308,536		1,307,821		650,386		650,467
Due 1 - 10 years:
U.S. treasuries		87,133		86,943		33,946		33,940
U.S. government agency securities		12,500		12,476		10,350		10,351
Total	$	1,850,101	$	1,849,146	$	925,559	$	925,645

FAIR VALUE OF CERTAIN FINANCIAL ASSETS AND LIABILITIES

12 Months Ended

Dec. 31, 2021

FAIR VALUE OF CERTAIN FINANCIAL ASSETS AND LIABILITIES

FAIR VALUE OF CERTAIN FINANCIAL ASSETS AND LIABILITIES

5. FAIR VALUE OF CERTAIN FINANCIAL ASSETS AND LIABILITIES

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

●

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

●

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

●

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

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

The following tables present the fair value of 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:


December 31, 2021	Level 1		Level 2		Level 3		Total
Cash	$	749,089	$	—	$	—	$	749,089
Money market funds		440,826		—		—		440,826
Certificates of deposit		—		44,502		—		44,502
Commercial paper		—		335,477		—		335,477
Municipal securities		—		2,428		—		2,428
U.S. government agency securities		—		75,137		—		75,137
U.S. treasuries		—		1,528,149		—		1,528,149
Foreign currency derivatives		—		(278)		—		(278)
Total	$	1,189,915	$	1,985,415	$	—	$	3,175,330

Amounts included in:
Cash and cash equivalents	$	1,189,915	$	136,547	$	—	$	1,326,462
Short-term investments		—		1,749,727		—		1,749,727
Accounts receivable, net		—		654		—		654
Investments		—		99,419		—		99,419
Accrued liabilities		—		(932)		—		(932)
Total	$	1,189,915	$	1,985,415	$	—	$	3,175,330


December 31, 2020	Level 1		Level 2		Level 3		Total
Cash	$	796,421	$	—	$	—	$	796,421
Money market funds		352,730		—		—		352,730
Certificates of deposit		—		23,137		—		23,137
Commercial paper		—		130,883		—		130,883
Municipal securities		—		9,083		—		9,083
U.S. government agency securities		—		91,882		—		91,882
U.S. treasuries		—		701,922		—		701,922
Foreign currency derivatives		—		(2,578)		—		(2,578)
Total	$	1,149,151	$	954,329	$	—	$	2,103,480

Amounts included in:
Cash and cash equivalents	$	1,149,151	$	31,262	$	—	$	1,180,413
Short-term investments		—		881,354		—		881,354
Accounts receivable, net		—		69		—		69
Investments		—		44,291		—		44,291
Accrued liabilities		—		(2,647)		—		(2,647)
Total	$	1,149,151	$	954,329	$	—	$	2,103,480

All of the Company’s short-term and long-term investments are classified within Level 1 or Level 2 of the fair value hierarchy. The Company’s valuation of its Level 1 investments is based on quoted market prices in active markets for identical securities. The Company’s valuation of its Level 2 investments is based on other observable inputs, specifically a market approach which utilizes valuation models, pricing systems, mathematical tools and other relevant information for the same or similar securities. The Company’s valuation of its Level 2 foreign currency exchange contracts is based on quoted market prices of the same or similar instruments, adjusted for counterparty risk. There were no transfers between Level 1 and Level 2 measurements during the years ended December 31, 2021 and 2020, 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

DISTRIBUTION AGREEMENTS (Details) - USD ($) $ in Millions	12 Months Ended
DISTRIBUTION AGREEMENTS (Details) - USD ($) $ in Millions	Dec. 31, 2021	Dec. 31, 2020	Dec. 31, 2019
DISTRIBUTION AGREEMENTS
Termination costs	$ 5.3	$ 0.2	$ 11.3
Distribution agreement (in years)	20 years
Revenue recognized	$ 21.5	$ 21.4	$ 25.0

CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands	Dec. 31, 2021	Dec. 31, 2020
CURRENT ASSETS:
Cash and cash equivalents	$ 1,326,462	$ 1,180,413
Short-term investments	1,749,727	881,354
Accounts receivable, net	896,658	666,012
Inventories	593,357	333,085
Prepaid expenses and other current assets	82,668	55,358
Prepaid income taxes	33,238	24,733
Total current assets	4,682,110	3,140,955
INVESTMENTS	99,419	44,291
PROPERTY AND EQUIPMENT, net	313,753	314,656
DEFERRED INCOME TAXES	225,221	241,650
GOODWILL	1,331,643	1,331,643
OTHER INTANGIBLE ASSETS, net	1,072,386	1,059,046
OTHER ASSETS	80,252	70,475
Total Assets	7,804,784	6,202,716
CURRENT LIABILITIES:
Accounts payable	404,263	296,800
Accrued liabilities	210,964	142,653
Accrued promotional allowances	211,461	186,658
Deferred revenue	42,530	45,429
Accrued compensation	65,459	55,015
Income taxes payable	30,399	23,433
Total current liabilities	965,076	749,988
DEFERRED REVENUE	243,249	264,436
OTHER LIABILITIES	29,508	27,432
COMMITMENTS AND CONTINGENCIES (Note 12)
STOCKHOLDERS' EQUITY:
Common stock - $0.005 par value; 1,250,000 shares authorized; 640,043 shares issued and 529,323 shares outstanding as of December 31, 2021; 638,662 shares issued and 528,097 shares outstanding as of December 31, 2020	3,200	3,193
Additional paid-in capital	4,652,620	4,537,982
Retained earnings	7,809,549	6,432,074
Accumulated other comprehensive (loss) income	(69,165)	3,034
Common stock in treasury, at cost; 110,720 shares and 110,565 shares as of December 31, 2021 and December 31, 2020, respectively	(5,829,253)	(5,815,423)
Total stockholders' equity	6,566,951	5,160,860
Total Liabilities and Stockholders' Equity	$ 7,804,784	$ 6,202,716

DEBT (Details) - USD ($) $ in Millions	1 Months Ended
DEBT (Details) - USD ($) $ in Millions	Apr. 30, 2020	Dec. 31, 2021	Feb. 28, 2018
Comerica \| Line of credit
DEBT
Maximum borrowing capacity	$ 10.0
Outstanding borrowings		$ 0.0
Comerica \| Line of credit \| Base (prime) rate \| Minimum
DEBT
Percentage to be subtracted to compute the variable rate on the debt instrument	1.00%
Comerica \| Line of credit \| Base (prime) rate \| Maximum
DEBT
Percentage to be subtracted to compute the variable rate on the debt instrument	1.50%
Comerica \| Line of credit \| London Interbank Offered Rates \| Minimum
DEBT
Percentage that needs to be added to compute the variable rate on the debt instrument	1.25%
Comerica \| Line of credit \| London Interbank Offered Rates \| Maximum
DEBT
Percentage that needs to be added to compute the variable rate on the debt instrument	1.75%
Comerica \| Standby letters of credit
DEBT
Maximum borrowing capacity	$ 4.0
Amount outstanding		0.0
Comerica \| Standby letters of credit \| Minimum
DEBT
Fee (as a percent)	1.00%
Comerica \| Standby letters of credit \| Maximum
DEBT
Fee (as a percent)	1.50%
HSBC China \| Line of credit
DEBT
Maximum borrowing capacity			$ 15.0
Amount outstanding		$ 5.8
Interest rate (as a percent)		5.50%

ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Advertising and Promotional Expenses (Details) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2021	Dec. 31, 2020	Dec. 31, 2019
ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
Advertising and promotional expenses	$ 417.6	$ 345.7	$ 391.6

REVENUE RECOGNITION - (Details)	12 Months Ended
REVENUE RECOGNITION - (Details)	Dec. 31, 2021 segment
REVENUE RECOGNITION
Number of operating segments	3
Number of reportable segments	3
Distribution agreement, revenue recognition period	20 years

LEASES - Operating and finance leases liabilities (Details) - USD ($) $ in Thousands	Dec. 31, 2021	Dec. 31, 2020
Lessee, Lease, Description [Line Items]
Operating Leases	$ 21,379	$ 20,513
Finance Leases	$ 1,001	$ 823
Operating Lease, Liability, Statement of Financial Position [Extensible List]	Accrued liabilities, Other Liabilities	Accrued liabilities, Other Liabilities
Accrued liabilities
Lessee, Lease, Description [Line Items]
Operating Leases	$ 3,990	$ 3,171
Finance Leases	960	799
Other Liabilities
Lessee, Lease, Description [Line Items]
Operating Leases	17,389	17,342
Finance Leases	$ 41	$ 24

INVESTMENTS - Maturity Period (Details) - USD ($) $ in Thousands	Dec. 31, 2021	Dec. 31, 2020
Investments
Amortized Cost	$ 1,850,101	$ 925,559
Fair Value	1,849,146	925,645
Commercial paper \| Less than 1 year
Investments
Amortized Cost	334,077	119,886
Fair Value	334,077	119,886
Municipal securities \| Less than 1 year
Investments
Amortized Cost	666	9,083
Fair Value	666	9,083
U.S. government agency securities \| Less than 1 year
Investments
Amortized Cost	62,687	81,521
Fair Value	62,661	81,531
U.S. government agency securities \| Due 1 - 10 years
Investments
Amortized Cost	12,500	10,350
Fair Value	12,476	10,351
Certificates of deposit \| Less than 1 year
Investments
Amortized Cost	44,502	20,387
Fair Value	44,502	20,387
U.S. treasuries \| Less than 1 year
Investments
Amortized Cost	1,308,536	650,386
Fair Value	1,307,821	650,467
U.S. treasuries \| Due 1 - 10 years
Investments
Amortized Cost	87,133	33,946
Fair Value	$ 86,943	$ 33,940

CONSOLIDATED BALANCE SHEETS (Parenthetical) - $ / shares shares in Thousands	Dec. 31, 2021	Dec. 31, 2020
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	640,043	638,662
Common stock, shares outstanding	529,323	528,097
Common stock in treasury, shares	110,720	110,565

GOODWILL AND OTHER INTANGIBLE ASSETS - Intangible assets (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2021	Dec. 31, 2020	Dec. 31, 2019
Intangible assets
Amortizing intangibles	$ 66,872	$ 66,875
Accumulated amortization	(61,227)	(56,801)
Amortizing intangibles, net	5,645	10,074
Non-amortizing intangibles	1,066,741	1,048,972
Intangibles, net	1,072,386	1,059,046
Amortization expense	4,400	7,700	$ 11,600
Impairment	$ 0	$ 8,700	$ 0
Minimum
Intangible assets
Useful life of intangible assets	5 years
Maximum
Intangible assets
Useful life of intangible assets	7 years

CONSOLIDATED STATEMENTS OF INCOME - USD ($) shares in Thousands, $ in Thousands	12 Months Ended
	Dec. 31, 2021	Dec. 31, 2020	Dec. 31, 2019
CONSOLIDATED STATEMENTS OF INCOME
NET SALES	$ 5,541,352	$ 4,598,638	$ 4,200,819
COST OF SALES	2,432,839	1,874,758	1,682,234
GROSS PROFIT	3,108,513	2,723,880	2,518,585
OPERATING EXPENSES	1,311,046	1,090,727	1,115,646
OPERATING INCOME	1,797,467	1,633,153	1,402,939
OTHER INCOME (EXPENSE), NET	3,952	(6,996)	13,023
INCOME BEFORE PROVISION FOR INCOME TAXES	1,801,419	1,626,157	1,415,962
PROVISION FOR INCOME TAXES	423,944	216,563	308,127
NET INCOME	$ 1,377,475	$ 1,409,594	$ 1,107,835
NET INCOME PER COMMON SHARE:
Basic	$ 2.61	$ 2.66	$ 2.04
Diluted	$ 2.57	$ 2.64	$ 2.03
WEIGHTED AVERAGE NUMBER OF SHARES OF COMMON STOCK AND COMMON STOCK EQUIVALENTS:
Basic	528,763	529,639	542,191
Diluted	535,639	534,807	546,608

DISTRIBUTION AGREEMENTS

12 Months Ended

Dec. 31, 2021

DISTRIBUTION AGREEMENTS

DISTRIBUTION AGREEMENTS

10. DISTRIBUTION AGREEMENTS

In accordance with FASB ASC 420 “Exit or Disposal Cost Obligations”, the Company expenses distributor termination costs in the period in which the written notification of termination occurs. As a result, the Company incurred termination costs of $5.3 million, $0.2 million and $11.3 million for the years ended December 31, 2021, 2020 and 2019, respectively. Such termination costs have been expensed in full and are included in operating expenses in the consolidated statements of income for the years ended December 31, 2021, 2020 and 2019.

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 $21.5 million, $21.4 million and $25.0 million for the years ended December 31, 2021, 2020 and 2019, respectively.

STOCK-BASED COMPENSATION (Tables)

12 Months Ended

Dec. 31, 2021

STOCK-BASED COMPENSATION

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



	2021		2020		2019
Dividend yield	0.0	%	0.0	%	0.0	%
Expected volatility	28.9	%	30.4	%	30.2	%
Risk-free interest rate	0.85	%	0.70	%	2.37	%
Expected term	5.8 Years		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	Aggregate
	Shares	Price Per		Term (in	Intrinsic
Options	(in thousands)	Share		years)	Value
Outstanding at January 1, 2021	13,973	$	44.93	5.7	$	664,432
Granted 01/01/21 - 03/31/21	1,015	$	88.95
Granted 04/01/21 - 06/30/21	13	$	91.36
Granted 07/01/21 - 09/30/21	23	$	95.33
Granted 10/01/21 - 12/31/21	12	$	87.00
Exercised	(1,037)	$	44.10
Cancelled or forfeited	(139)	$	63.05
Outstanding at December 31, 2021	13,860	$	48.19	5.1	$	663,148
Vested and expected to vest in the future at December 31, 2021	13,633	$	47.80	5.0	$	657,633
Exercisable at December 31, 2021	9,644	$	40.33	4.0	$	537,261

Summary of information about stock options outstanding and exercisable


					Options Outstanding				Options Exercisable
						Weighted Average
						Remaining	Weighted		Number	Weighted
					Number	Contractual	Average		Exercisable	Average
Range of Exercise					Outstanding	Term	Exercise		(In	Exercise
Prices ($)					(In Thousands)	(Years)	Price ($)		Thousands)	Price ($)
$	15.71	-	$	17.99	1,395	1.4	$	17.77	1,395	$	17.77
$	18.64	-	$	23.35	1,562	2.1	$	23.08	1,562	$	23.08
$	36.05	-	$	36.05	9	3.0	$	36.05	9	$	36.05
$	37.10	-	$	43.99	2,280	4.3	$	43.47	2,272	$	43.47
$	44.73	-	$	45.16	1,410	3.4	$	45.10	1,410	$	45.10
$	45.55	-	$	54.45	1,491	5.5	$	48.21	1,058	$	47.43
$	55.14	-	$	57.95	153	7.1	$	56.90	36	$	56.57
$	58.73	-	$	58.73	2,054	6.2	$	58.73	1,084	$	58.73
$	58.77	-	$	58.77	4	6.6	$	58.77	2	$	58.77
$	59.67	-	$	97.80	3,502	8.1	$	69.29	816	$	60.56
					13,860	5.1	$	48.19	9,644	$	40.33

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, 2021	947	$	60.52
Granted 01/01/21 - 03/31/21¹	304	$	86.28
Granted 04/01/21 - 06/30/21	14	$	92.14
Granted 07/01/21 - 09/30/21	1	$	89.84
Granted 10/01/21 - 12/31/21	1	$	89.95
Vested	(344)	$	62.29
Forfeited/cancelled	(13)	$	60.41
Non-vested at December 31, 2021	910	$	69.02

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


	2021		2020		2019
Operating expenses	$	70,483	$	70,289	$	63,356
Total employee and non-employee share-based compensation expense included in income, before income tax		70,483		70,289		63,356
Less: Amount of income tax benefit recognized in earnings		(14,228)		(15,499)		(36,326)
Amount charged against net income	$	56,255	$	54,790	$	27,030

COMMITMENTS AND CONTINGENCIES

12 Months Ended

Dec. 31, 2021

COMMITMENTS AND CONTINGENCIES

COMMITMENTS AND CONTINGENCIES

12. COMMITMENTS AND CONTINGENCIES

Contractual Obligations – The Company had the following contractual obligations related primarily to sponsorships, other marketing activities and AFF new production facility construction costs as of December 31, 2021:


Year Ending December 31:

2022	$	236,698
2023		57,848
2024		10,497
2025		10
2026		—
2027 and thereafter		—
	$	305,053

Purchase Commitments – The Company had purchase commitments aggregating approximately $273.4 million at December 31, 2021, which represent commitments made by the Company and its subsidiaries to various suppliers of raw materials for the production of its products. These obligations vary in terms, but are generally satisfied within one year.

The Company purchases various raw material items, including, but not limited to, flavors, ingredients, supplement ingredients, containers, milk, glucose, sucralose, cream and protein, from a limited number of suppliers. An interruption in supply from any of such resources could result in the Company’s inability to produce certain products for limited or possibly extended periods of time. The aggregate value of purchases from suppliers of such limited resources described above for the years ended December 31, 2021, 2020 and 2019 was $698.0 million, $401.8 million and $335.3 million, respectively.

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

Litigation – From time to time in the normal course of business, the Company is named in litigation, including labor and employment matters, personal injury matters, consumer class actions, intellectual property matters 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, and any related insurance reimbursements. As of December 31, 2021, no loss contingencies were included in the Company’s consolidated balance sheet.

LEASES (Tables)

12 Months Ended

Dec. 31, 2021

LEASES

Schedule of lease cost


	2021		2020		2019
Operating lease cost	$	4,614	$	4,637	$	4,899

Short-term lease cost		5,218		3,408		3,406

Variable lease cost		710		719		640

Finance leases:
Amortization of ROU assets		546		626		436
Interest on lease liabilities		19		39		56
Finance lease cost		565		665		492

Total lease cost	$	11,107	$	9,429	$	9,437

Schedule of supplemental cash flow information for leases


	2021		2020		2019
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows from operating leases	$	4,123	$	3,982	$	4,077
Operating cash flows from finance leases		19		39		56
Financing cash flows from finance leases		2,698		3,086		2,223

ROU assets obtained in exchange for lease obligations:
Finance leases		2,878		2,417		2,866
Operating leases		4,313		3,003		34,931

Schedule of ROU assets for operating and finance leases


	December 31, 2021
	Real Estate		Equipment		Total		Balance Sheet Location
Operating leases	$	22,518	$	639	$	23,157	Other Assets
Finance leases		—		2,646		2,646	Property and Equipment, net


	December 31, 2020
	Real Estate		Equipment		Total		Balance Sheet Location
Operating leases	$	22,565	$	189	$	22,754	Other Assets
Finance leases		—		2,120		2,120	Property and Equipment, net

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


	December 31, 2021
	Operating Leases		Finance Leases
Accrued liabilities	$	3,990	$	960
Other liabilities		17,389		41
Total	$	21,379	$	1,001


	December 31, 2020
	Operating Leases		Finance Leases
Accrued liabilities	$	3,171	$	799
Other liabilities		17,342		24
Total	$	20,513	$	823

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


	December 31, 2021
	Operating Leases		Finance Leases
Weighted-average remaining lease term (years)	8.1		0.7
Weighted-average discount rate	3.5	%	1.3	%


	December 31, 2020
	Operating Leases		Finance Leases
Weighted-average remaining lease term (years)	9.4		0.6
Weighted-average discount rate	3.6	%	1.9	%

Schedule of reconciliation of undiscounted future lease payments for operating leases


	Undiscounted Future Lease Payments
	Operating Leases		Finance Leases
2022	$	4,605	$	964
2023		3,821		21
2024		2,978		13
2025		1,669		8
2026		1,692		—
2027 and thereafter		9,949		—
Total lease payments		24,714		1,006
Less imputed interest		(3,335)		(5)
Total	$	21,379	$	1,001

GOODWILL AND OTHER INTANGIBLE ASSETS (Tables)

12 Months Ended

Dec. 31, 2021

GOODWILL AND OTHER INTANGIBLE ASSETS

Schedule of goodwill


	Monster
	Energy®		Strategic
	Drinks		Brands		Other		Total
Balance at December 31, 2020	$	693,644	$	637,999	$	—	$	1,331,643
Acquisitions		—		—		—		—
Balance at December 31, 2021	$	693,644	$	637,999	$	—	$	1,331,643


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

Schedule of intangible assets


	December 31,		December 31,
	2021		2020
Amortizing intangibles	$	66,872	$	66,875
Accumulated amortization		(61,227)		(56,801)
		5,645		10,074
Non-amortizing intangibles		1,066,741		1,048,972
	$	1,072,386	$	1,059,046

Schedule of future estimated amortization expense related to amortizing intangibles

The following is the future estimated amortization expense related to amortizing intangibles as of December 31, 2021:


Year Ending December 31:

2022	$	4,405
2023		1,112
2024		14
2025		13
2026		13
2027 and thereafter		88
	$	5,645

GOODWILL AND OTHER INTANGIBLE ASSETS - Goodwill (Details) - USD ($) $ in Thousands	Dec. 31, 2021	Dec. 31, 2020
Goodwill
Goodwill, Beginning Balance	$ 1,331,643	$ 1,331,643
Goodwill, Ending Balance	1,331,643	1,331,643
Monster Energy Drinks
Goodwill
Goodwill, Beginning Balance	693,644	693,644
Goodwill, Ending Balance	693,644	693,644
Strategic Brands
Goodwill
Goodwill, Beginning Balance	637,999	637,999
Goodwill, Ending Balance	$ 637,999	$ 637,999

COMMITMENTS AND CONTINGENCIES - Purchase Commitments (Details) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2021	Dec. 31, 2020	Dec. 31, 2019
Purchase Commitments
Aggregate value of raw material purchases	$ 698.0	$ 401.8	$ 335.3
Raw material items
Purchase Commitments
Purchase commitments	$ 273.4
Obligation term ( in years)	1 year

INCOME TAXES (Tables)

12 Months Ended

Dec. 31, 2021

INCOME TAXES

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


	Year Ended December 31,
	2021		2020		2019
Domestic*	$	1,431,797	$	1,374,402	$	1,196,883
Foreign*		369,622		251,755		219,079
Income before provision for income taxes	$	1,801,419	$	1,626,157	$	1,415,962

Components of the provision for income taxes


	Year Ended December 31,
	2021		2020		2019
Current:
Federal	$	273,115	$	259,073	$	212,068
State		44,990		43,704		39,982
Foreign		89,410		70,658		55,167
		407,515		373,435		307,217

Deferred:
Federal		14,750		11,401		8,320
State		4,689		4,709		(6,878)
Foreign		5,092		(167,595)		(4,219)
		24,531		(151,485)		(2,777)

Valuation allowance		(8,102)		(5,387)		3,687
	$	423,944	$	216,563	$	308,127

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


	Year Ended December 31,
	2021		2020		2019
U.S. Federal tax expense at statutory rates	$	378,298	$	341,493	$	297,352
State income taxes, net of federal tax benefit		38,894		37,478		30,098
Permanent differences		(4,168)		(1,064)		(2,128)
Stock based compensation		2,790		1,097		(13,473)
Intra-company transfer benefit		—		(165,075)		—
Other		(649)		(7,388)		(12,423)
Foreign rate differential		16,881		15,409		5,014
Valuation allowance		(8,102)		(5,387)		3,687
	$	423,944	$	216,563	$	308,127

Components of the deferred tax assets (liabilities)


	2021		2020
Deferred Tax Assets:
Reserve for sales returns	$	889	$	275
Reserve for inventory obsolescence		3,643		2,366
Reserve for marketing development fund		8,951		9,629
Capitalization of inventory costs		2,533		3,365
State franchise tax - current		2,493		4,229
Accrued compensation		2,854		1,284
Accrued other liabilities		4,634		7,464
Deferred revenue		68,557		75,592
Stock-based compensation		24,635		23,370
Foreign net operating loss carryforward		14,507		21,626
Prepaid supplies		6,317		5,551
Termination payments		58,042		63,009
Operating lease liabilities		4,711		4,434
Intangibles		72,666		87,687
Impairment-trademarks and others		2,047		2,055
Other deferred tax assets		33,013		27,164
Total gross deferred tax assets	$	310,492	$	339,100

Deferred Tax Liabilities:
Amortization of trademarks	$	(41,517)	$	(42,161)
State franchise tax - deferred		(5,505)		(6,318)
Operating lease ROU assets		(4,711)		(4,434)
Other deferred tax liabilities		(618)		(58)
Depreciation		(5,907)		(9,363)
Total gross deferred tax liabilities		(58,258)		(62,334)

Valuation Allowance		(27,013)		(35,116)

Net deferred tax assets	$	225,221	$	241,650

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


	Gross Unrecognized Tax
	Benefits
Balance at December 31, 2018	$	5,035
Additions for tax positions related to the current year		—
Additions for tax positions related to the prior year		1,833
Decreases for tax positions related to prior years		(3,875)
Balance at December 31, 2019	$	2,993
Additions for tax positions related to the current year		—
Additions for tax positions related to the prior year		—
Decreases for tax positions related to prior years		(2,251)
Balance at December 31, 2020	$	742
Additions for tax positions related to the current year		—
Additions for tax positions related to the prior year		—
Decreases for tax positions related to prior years		(742)
Balance at December 31, 2021	$	—

GOODWILL AND OTHER INTANGIBLE ASSETS - Amortization expense (Details) - USD ($) $ in Thousands	Dec. 31, 2021	Dec. 31, 2020
Future estimated amortization expense related to amortizing intangibles
2022	$ 4,405
2023	1,112
2024	14
2025	13
2026	13
2027 and thereafter	88
Amortizing intangibles, net	$ 5,645	$ 10,074

ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Goodwill (Details) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2021	Dec. 31, 2020	Dec. 31, 2019
ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
Impairment of Goodwill	$ 0.0	$ 0.0	$ 0.0

ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS)

12 Months Ended

Dec. 31, 2021

ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS)

ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS)

13. ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS)

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


	2021		2020
Accumulated net unrealized (loss) gain on available-for-sale securities	$	(956)	$	84
Foreign currency translation adjustments, net of tax		(68,209)		2,950
Total accumulated other comprehensive (loss) income	$	(69,165)	$	3,034

LEASES - Lease Terms (Details)	12 Months Ended
LEASES - Lease Terms (Details)	Dec. 31, 2021
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
Maximum
LEASES
Operating leases, lease term (in years)	12 years
Operating leases, renewal lease term (in years)	5 years
Operating leases, termination period (in years)	1 year

TREASURY STOCK PURCHASE

12 Months Ended

Dec. 31, 2021

TREASURY STOCK PURCHASE

TREASURY STOCK PURCHASE

14. TREASURY STOCK PURCHASE

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 year ended December 31, 2021, no shares were purchased under the March 2020 Repurchase Plan. As of February 28, 2022, $441.5 million remained available for repurchase under the March 2020 Repurchase Plan.

During the year ended December 31, 2021, 0.2 million shares of common stock were purchased from employees in lieu of cash payments for options exercised or withholding taxes due for a total amount of $13.8 million. While such purchases are considered common stock repurchases, they are not counted as purchases against the Company’s authorized share repurchase programs. Such shares are included in common stock in treasury in the accompanying consolidated balance sheet at December 31, 2021.

SEGMENT INFORMATION (Tables)

12 Months Ended

Dec. 31, 2021

SEGMENT INFORMATION

Schedule of net revenues and other financial information by segment




	2021		2020		2019
Net sales:
Monster Energy® Drinks⁽¹⁾	$	5,220,673	$	4,305,246	$	3,904,029
Strategic Brands		294,762		266,354		274,925
Other		25,917		27,038		21,865
Corporate and unallocated		—		—		—
	$	5,541,352	$	4,598,638	$	4,200,819




	2021		2020		2019
Operating Income:
Monster Energy® Drinks⁽¹⁾	$	1,990,785	$	1,820,346	$	1,565,977
Strategic Brands		173,660		155,047		164,053
Other		6,935		5,930		3,650
Corporate and unallocated		(373,913)		(348,170)		(330,741)
	$	1,797,467	$	1,633,153	$	1,402,939




	2021		2020		2019
Income before tax:
Monster Energy® Drinks⁽¹⁾	$	1,992,185	$	1,820,625	$	1,567,022
Strategic Brands		173,739		155,047		164,049
Other		6,935		5,933		3,655
Corporate and unallocated		(371,440)		(355,448)		(318,764)
	$	1,801,419	$	1,626,157	$	1,415,962

(1)

Includes $41.5 million, $42.1 million and $46.3 million for the years ended December 31, 2021, 2020 and 2019, respectively, related to the recognition of deferred revenue.




	2021		2020		2019
Depreciation and amortization:
Monster Energy® Drinks	$	34,532	$	38,277	$	39,397
Strategic Brands		1,085		4,178		7,935
Other		4,485		4,631		4,637
Corporate and unallocated		10,053		9,944		8,758
	$	50,155	$	57,030	$	60,727

Schedule of goodwill and other intangible assets for the reportable segments


	2021		2020
Goodwill and other intangible assets:
Monster Energy® Drinks	$	1,420,503	$	1,406,646
Strategic Brands		978,032		974,132
Other		5,494		9,911
Corporate and unallocated		—		—
	$	2,404,029	$	2,390,689

INVENTORIES

12 Months Ended

Dec. 31, 2021

INVENTORIES

INVENTORIES

7. INVENTORIES

Inventories consist of the following at December 31:


	2021		2020
Raw materials	$	349,865	$	155,166
Finished goods		243,492		177,919
	$	593,357	$	333,085

ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) (Tables)

12 Months Ended

Dec. 31, 2021

ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS)

Schedule of components of accumulated other comprehensive (loss) income


	2021		2020
Accumulated net unrealized (loss) gain on available-for-sale securities	$	(956)	$	84
Foreign currency translation adjustments, net of tax		(68,209)		2,950
Total accumulated other comprehensive (loss) income	$	(69,165)	$	3,034

SCHEDULE II - VALUATION AND QUALIFYING ACCOUNTS

12 Months Ended

Dec. 31, 2021

SCHEDULE II - VALUATION AND QUALIFYING ACCOUNTS

SCHEDULE II - VALUATION AND QUALIFYING ACCOUNTS


	Balance at		Charged to				Balance at
	beginning		cost and				end of
Description	of period		expenses		Deductions		period
Allowance for doubtful accounts, sales returns and cash discounts:

2021	$	1,878	$	14,799	$	(12,001)	$	4,676
2020	$	2,045	$	9,664	$	(9,831)	$	1,878
2019	$	1,589	$	9,583	$	(9,127)	$	2,045

Allowance on Deferred Tax Assets and Unrecognized Tax Benefits:

2021	$	35,993	$	(8,980)	$	—	$	27,013
2020	$	43,853	$	(7,860)	$	—	$	35,993
2019	$	42,748	$	1,105	$	—	$	43,853

LEASES - Weighted-average remaining lease term and weighted-average discount rate (Details)	Dec. 31, 2021	Dec. 31, 2020
LEASES
Weighted-average remaining lease term (years), Operating Leases	8 years 1 month 6 days	9 years 4 months 24 days
Weighted-average remaining lease term (years), Finance Leases	8 months 12 days	7 months 6 days
Weighted-average discount rate, Operating Leases	3.50%	3.60%
Weighted-average discount rate, Finance Leases	1.30%	1.90%

DERIVATIVE INSTRUMENTS AND HEDGING ACTIVITIES (Tables)

12 Months Ended

Dec. 31, 2021

DERIVATIVE INSTRUMENTS AND HEDGING ACTIVITIES

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


December 31, 2021
Derivatives not designated as
hedging instruments under	Notional		Fair
FASB ASC 815-20	Amount		Value		Balance Sheet Location
Assets:
Foreign currency exchange contracts:
Receive SGD/pay USD	$	16,544	$	297	Accounts receivable, net
Receive USD/pay COP		9,754		296	Accounts receivable, net
Receive RSD/pay USD		9,837		46	Accounts receivable, net
Receive USD/pay RUB		7,175		15	Accounts receivable, net

Liabilities:
Foreign currency exchange contracts:
Receive USD/pay GBP	$	29,929	$	(666)	Accrued liabilities
Receive USD/pay AUD		2,602		(88)	Accrued liabilities
Receive USD/pay CNY		12,230		(74)	Accrued liabilities
Receive USD/pay NZD		2,693		(45)	Accrued liabilities
Receive USD/pay EUR		3,045		(29)	Accrued liabilities
Receive USD/pay ZAR		4,140		(21)	Accrued liabilities
Receive USD/pay DKK		1,461		(9)	Accrued liabilities


December 31, 2020
Derivatives not designated as
hedging instruments under	Notional		Fair
FASB ASC 815-20	Amount		Value		Balance Sheet Location
Assets:
Foreign currency exchange contracts:
Receive SGD/pay USD	$	18,713	$	41	Accounts receivable, net
Receive RSD/pay USD		10,127		28	Accounts receivable, net

Liabilities:
Foreign currency exchange contracts:
Receive EUR/pay USD	$	1,298,899	$	(1,768)	Accrued liabilities
Receive USD/pay GBP		35,256		(416)	Accrued liabilities
Receive USD/pay AUD		8,508		(130)	Accrued liabilities
Receive USD/pay ZAR		2,403		(106)	Accrued liabilities
Receive USD/pay COP		5,436		(93)	Accrued liabilities
Receive USD/pay CNY		12,344		(50)	Accrued liabilities
Receive USD/pay RUB		7,780		(40)	Accrued liabilities
Receive NOK/pay USD		4,411		(18)	Accrued liabilities
Receive USD/pay NZD		2,290		(13)	Accrued liabilities
Receive SEK/pay USD		2,275		(10)	Accrued liabilities
Receive USD/pay DKK		3,151		(3)	Accrued liabilities

Schedule of net (losses) gains 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)	Year ended
hedging instruments under	recognized in income on	December 31,		December 31,		December 31,
FASB ASC 815-20	derivatives	2021		2020		2019
Foreign currency exchange contracts	Other income (expense), net	$	(5,445)	$	(3,317)	$	(2,555)

INVESTMENTS (Details) - USD ($) $ in Thousands	Dec. 31, 2021	Dec. 31, 2020
Available-for-sale
Amortized Cost	$ 1,850,101	$ 925,559
Gross Unrealized Holding Gains	2	165
Gross Unrealized Holding Losses	957	79
Fair Value	1,849,146	925,645
Continuous Unrealized Loss Position less than 12 Months	957	79
Short-term \| Commercial paper
Available-for-sale
Amortized Cost	334,077	119,886
Fair Value	334,077	119,886
Short-term \| Certificates of deposit
Available-for-sale
Amortized Cost	44,502	20,387
Fair Value	44,502	20,387
Short-term \| Municipal securities
Available-for-sale
Amortized Cost	666	9,083
Fair Value	666	9,083
Short-term \| U.S. government agency securities
Available-for-sale
Amortized Cost	62,687	81,521
Gross Unrealized Holding Gains		13
Gross Unrealized Holding Losses	26	3
Fair Value	62,661	81,531
Continuous Unrealized Loss Position less than 12 Months	26	3
Short-term \| U.S. treasuries
Available-for-sale
Amortized Cost	1,308,536	650,386
Gross Unrealized Holding Gains	2	150
Gross Unrealized Holding Losses	717	69
Fair Value	1,307,821	650,467
Continuous Unrealized Loss Position less than 12 Months	717	69
Long-term \| U.S. government agency securities
Available-for-sale
Amortized Cost	12,500	10,350
Gross Unrealized Holding Gains		1
Gross Unrealized Holding Losses	24
Fair Value	12,476	10,351
Continuous Unrealized Loss Position less than 12 Months	24
Long-term \| U.S. treasuries
Available-for-sale
Amortized Cost	87,133	33,946
Gross Unrealized Holding Gains		1
Gross Unrealized Holding Losses	190	7
Fair Value	86,943	33,940
Continuous Unrealized Loss Position less than 12 Months	$ 190	$ 7

LEASES

12 Months Ended

Dec. 31, 2021

LEASES

LEASES

3. LEASES

The components of lease cost for the years ended December 31, 2021, 2020 and 2019 were as follows:


	2021		2020		2019
Operating lease cost	$	4,614	$	4,637	$	4,899

Short-term lease cost		5,218		3,408		3,406

Variable lease cost		710		719		640

Finance leases:
Amortization of ROU assets		546		626		436
Interest on lease liabilities		19		39		56
Finance lease cost		565		665		492

Total lease cost	$	11,107	$	9,429	$	9,437

Supplemental cash flow information for leases for the years ended December 31, 2021, 2020 and 2019 were as follows:


	2021		2020		2019
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows from operating leases	$	4,123	$	3,982	$	4,077
Operating cash flows from finance leases		19		39		56
Financing cash flows from finance leases		2,698		3,086		2,223

ROU assets obtained in exchange for lease obligations:
Finance leases		2,878		2,417		2,866
Operating leases		4,313		3,003		34,931

ROU assets for operating and finance leases recognized in the consolidated balance sheets were comprised of the following at:


	December 31, 2021
	Real Estate		Equipment		Total		Balance Sheet Location
Operating leases	$	22,518	$	639	$	23,157	Other Assets
Finance leases		—		2,646		2,646	Property and Equipment, net


	December 31, 2020
	Real Estate		Equipment		Total		Balance Sheet Location
Operating leases	$	22,565	$	189	$	22,754	Other Assets
Finance leases		—		2,120		2,120	Property and Equipment, net

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


	December 31, 2021
	Operating Leases		Finance Leases
Accrued liabilities	$	3,990	$	960
Other liabilities		17,389		41
Total	$	21,379	$	1,001


	December 31, 2020
	Operating Leases		Finance Leases
Accrued liabilities	$	3,171	$	799
Other liabilities		17,342		24
Total	$	20,513	$	823

The weighted-average remaining lease terms and weighted-average discount rates for operating and finance leases were as follows at:


	December 31, 2021
	Operating Leases		Finance Leases
Weighted-average remaining lease term (years)	8.1		0.7
Weighted-average discount rate	3.5	%	1.3	%


	December 31, 2020
	Operating Leases		Finance Leases
Weighted-average remaining lease term (years)	9.4		0.6
Weighted-average discount rate	3.6	%	1.9	%

The following table reconciles the undiscounted future lease payments for operating and finance leases to the operating and finance leases recorded in the consolidated balance sheet at December 31, 2021:


	Undiscounted Future Lease Payments
	Operating Leases		Finance Leases
2022	$	4,605	$	964
2023		3,821		21
2024		2,978		13
2025		1,669		8
2026		1,692		—
2027 and thereafter		9,949		—
Total lease payments		24,714		1,006
Less imputed interest		(3,335)		(5)
Total	$	21,379	$	1,001

As of December 31, 2021, the Company did not have any significant additional operating or finance leases that had not yet commenced.

PROPERTY AND EQUIPMENT, Net (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2021	Dec. 31, 2020	Dec. 31, 2019
Property and equipment, net
Property and equipment, gross	$ 538,538	$ 519,410
Less: accumulated depreciation and amortization	(224,785)	(204,754)
Property and equipment, net	313,753	314,656
Total depreciation and amortization expense	45,700	49,300	$ 49,100
Land
Property and equipment, net
Property and equipment, gross	85,455	85,876
Leasehold improvements
Property and equipment, net
Property and equipment, gross	11,845	11,524
Furniture and fixtures
Property and equipment, net
Property and equipment, gross	8,274	8,271
Office and computer equipment
Property and equipment, net
Property and equipment, gross	21,601	21,657
Computer software
Property and equipment, net
Property and equipment, gross	8,383	6,945
Equipment
Property and equipment, net
Property and equipment, gross	190,333	185,348
Buildings
Property and equipment, net
Property and equipment, gross	167,243	156,616
Vehicles
Property and equipment, net
Property and equipment, gross	$ 45,404	$ 43,173

REVENUE RECOGNITION (Tables)

12 Months Ended

Dec. 31, 2021

REVENUE RECOGNITION

Schedule of disaggregation of revenue by geographical markets


	Year Ended December 31, 2021
							Latin
							America
	U.S. and						and
Net Sales	Canada		EMEA¹		Asia Pacific		Caribbean		Total
Monster Energy® Drinks	$	3,455,704	$	1,004,005	$	446,023	$	314,941	$	5,220,673
Strategic Brands		158,390		99,423		26,811		10,138		294,762
Other		25,917		—		—		—		25,917
Total Net Sales	$	3,640,011	$	1,103,428	$	472,834	$	325,079	$	5,541,352


	Year Ended December 31, 2020
							Latin
							America
	U.S. and						and
Net Sales	Canada		EMEA¹		Asia Pacific		Caribbean		Total
Monster Energy® Drinks	$	3,020,667	$	675,045	$	400,317	$	209,217	$	4,305,246
Strategic Brands		166,861		70,782		23,475		5,236		266,354
Other		27,038		—		—		—		27,038
Total Net Sales	$	3,214,566	$	745,827	$	423,792	$	214,453	$	4,598,638


	Year Ended December 31, 2019
							Latin
							America
	U.S. and						and
Net Sales	Canada		EMEA¹		Asia Pacific		Caribbean		Total
Monster Energy®Drinks	$	2,799,701	$	599,706	$	326,684	$	177,938	$	3,904,029
Strategic Brands		173,968		74,803		25,060		1,094		274,925
Other		21,865		—		—		—		21,865
Total Net Sales	$	2,995,534	$	674,509	$	351,744	$	179,032	$	4,200,819

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

RELATED PARTY TRANSACTIONS (Tables)

12 Months Ended

Dec. 31, 2021

RELATED PARTY TRANSACTIONS

Schedule of related party transactions


	December 31,		December 31,
	2021		2020
Accounts receivable, net	$	94,647	$	44,925
Accounts payable	$	(35,248)	$	(30,792)
Accrued promotional allowances	$	(4,536)	$	(5,834)
Accrued liabilities	$	(26,616)	$	(15,446)

EARNINGS PER SHARE (Details) - shares shares in Thousands	12 Months Ended
EARNINGS PER SHARE (Details) - shares shares in Thousands	Dec. 31, 2021	Dec. 31, 2020	Dec. 31, 2019
Weighted-average shares outstanding:
Basic	528,763	529,639	542,191
Dilutive securities	6,876	5,168	4,417
Diluted	535,639	534,807	546,608
Options and awards outstanding excluded from the calculations as their effect would have been antidilutive (in shares)	800	1,800	4,400

ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Freight-Out Costs (Details) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2021	Dec. 31, 2020	Dec. 31, 2019
ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
Freight-out costs	$ 213.9	$ 134.1	$ 122.5

SEGMENT INFORMATION - Expenses (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2021	Dec. 31, 2020	Dec. 31, 2019
Segment information
Operating income (loss)	$ 1,797,467	$ 1,633,153	$ 1,402,939
Stock-based compensation expense	70,500	70,300	63,400
Corporate and Unallocated
Segment information
Operating income (loss)	373,913	348,170	330,741
Payroll costs	258,600	234,100	203,300
Stock-based compensation expense	70,300	69,900	63,400
Professional service expenses	77,900	67,600	78,500
Insurance costs	9,300	7,500	6,100
Other operating expenses	$ 28,100	$ 39,000	$ 42,800

LEASES - Lease Cost (Details) - USD ($) $ in Thousands	12 Months Ended
LEASES - Lease Cost (Details) - USD ($) $ in Thousands	Dec. 31, 2021	Dec. 31, 2020	Dec. 31, 2019
LEASES
Operating lease cost	$ 4,614	$ 4,637	$ 4,899
Short-term lease cost	5,218	3,408	3,406
Variable lease cost	710	719	640
Finance leases:
Amortization of ROU assets	546	626	436
Interest on lease liabilities	19	39	56
Finance lease cost	565	665	492
Total lease cost	$ 11,107	$ 9,429	$ 9,437

SEGMENT INFORMATION - Concentration Risk (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2021	Dec. 31, 2020	Dec. 31, 2019
Segment information
Total Net Sales	$ 5,541,352	$ 4,598,638	$ 4,200,819
Sales \| Outside United States
Segment information
Total Net Sales	$ 2,040,000	$ 1,510,000	$ 1,330,000
TCCC \| Sales \| Customer concentration
Segment information
Percentage of net sales	2.00%	2.00%	2.00%
TCCC \| Sales \| Customer concentration \| Outside United States
Segment information
Percentage of net sales	37.00%	33.00%	32.00%
Coca-Cola Consolidated, Inc \| Sales \| Customer concentration
Segment information
Percentage of net sales	12.00%	12.00%	13.00%
Reyes Coca-Cola Bottling \| Sales \| Customer concentration
Segment information
Percentage of net sales	10.00%	11.00%	11.00%
Coca-Cola European Partners \| Sales \| Customer concentration
Segment information
Percentage of net sales	12.00%	10.00%	10.00%

STOCK-BASED COMPENSATION - Equity Awards (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands	3 Months Ended				12 Months Ended
	Dec. 31, 2021	Sep. 30, 2021	Jun. 30, 2021	Mar. 31, 2021	Dec. 31, 2021	Dec. 31, 2020	Dec. 31, 2019
STOCK-BASED COMPENSATION
Total employee and non-employee share-based compensation expense included in income, before income tax					$ 70,483	$ 70,289	$ 63,356
Compensation cost charged against income
Operating expenses					70,483	70,289	63,356
Less: Amount of income tax benefit recognized in earnings					(14,228)	(15,499)	(36,326)
Amount charged against net income					56,255	54,790	27,030
Operating expense
STOCK-BASED COMPENSATION
Total employee and non-employee share-based compensation expense included in income, before income tax					$ 70,500	$ 70,300	$ 63,400
Stock options
STOCK-BASED COMPENSATION
Weighted-average grant-date fair value of options granted (in dollars per share)					$ 25.80	$ 18.82	$ 20.17
Total intrinsic value of options exercised					$ 51,200	$ 68,800	$ 220,200
Cash received from option exercises					45,700	$ 72,900	$ 92,400
Total unrecognized compensation expense related to non-vested shares granted to employees	$ 51,300				$ 51,300
Cost expected to be recognized over a weighted-average period					2 years 1 month 6 days
Stock units expected to vest (in shares)	13,633				13,633
Restricted stock units
STOCK-BASED COMPENSATION
Total unrecognized compensation expense related to non-vested shares granted to employees	$ 34,800				$ 34,800
Cost expected to be recognized over a weighted-average period					1 year 10 months 24 days
Stock units expected to vest (in shares)	800				800
Number of Shares
Non-vested at the beginning of the period (in shares)				947	947
Granted (in shares)	1	1	14	304
Vested (in shares)					(344)
Forfeited/cancelled (in shares)					(13)
Non-vested at the end of the period (in shares)	910				910	947
Weighted Average Grant-Date Fair Value
Non-vested at the beginning of the period (in dollars per share)				$ 60.52	$ 60.52
Granted (in dollars per share)	$ 89.95	$ 89.84	$ 92.14	$ 86.28	89.12	$ 62.97	$ 59.79
Vested (in dollars per share)					62.29
Forfeited/cancelled (in dollars per share)					60.41
Non-vested at the end of the period (in dollars per share)	$ 69.02				$ 69.02	$ 60.52
Performance Share Units
STOCK-BASED COMPENSATION
Percentage of Target Performance Level					100.00%
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%
Incentive Stock Options.
STOCK-BASED COMPENSATION
Total employee and non-employee share-based compensation expense included in income, before income tax					$ 8,300	$ 9,400	$ 10,000
Non Qualified Stock Options.
STOCK-BASED COMPENSATION
Total employee and non-employee share-based compensation expense included in income, before income tax					60,600	58,200	$ 53,400
Other share-based awards
STOCK-BASED COMPENSATION
Total unrecognized compensation expense related to non-vested shares granted to employees	$ 700				$ 700
Cost expected to be recognized over a weighted-average period					1 year
Total employee and non-employee share-based compensation expense included in income, before income tax					$ 1,600	$ 2,700

LEASES - Undiscounted future lease payments for operating and finance leases (Details) - USD ($) $ in Thousands	Dec. 31, 2021	Dec. 31, 2020
Operating Leases
2022	$ 4,605
2023	3,821
2024	2,978
2025	1,669
2026	1,692
2027 and thereafter	9,949
Total lease payments	24,714
Less imputed interest	(3,335)
Total	$ 21,379	$ 20,513
Operating Lease, Liability, Statement of Financial Position [Extensible List]	Accrued liabilities, Other Liabilities	Accrued liabilities, Other Liabilities
Finance Leases
2022	$ 964
2023	21
2024	13
2025	8
Total lease payments	1,006
Less imputed interest	(5)
Total	$ 1,001	$ 823

LEASES - Supplemental cash flow information (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2021	Dec. 31, 2020	Dec. 31, 2019
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash outflows from operating leases	$ 4,123	$ 3,982	$ 4,077
Operating cash outflows from finance leases	19	39	56
Financing cash outflows from finance leases	2,698	3,086	2,223
ROU assets obtained in exchange for lease obligations:
Finance leases	2,878	2,417	2,866
Operating leases	$ 4,313	$ 3,003	$ 34,931

SUBSEQUENT EVENTS (Details) $ in Millions	Feb. 17, 2022 USD ($)
Subsequent event
Subsequent Event [Line Items]
Consideration transferred	$ 330.0

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS SUPPLEMENTAL DISCLOSURE OF NON-CASH ITEMS (Parenthetical) - USD ($) $ in Thousands	12 Months Ended			24 Months Ended
	Dec. 31, 2021	Dec. 31, 2020	Dec. 31, 2019	Dec. 31, 2021
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS NON-CASH SUPPLEMENTAL DATA
Accrued liabilities for intangible assets	$ 14,000	$ 9,800	$ 12,800
Accounts payable for purchase of available-for-sale short-term investment			$ 8,700	$ 0

DERIVATIVE INSTRUMENTS AND HEDGING ACTIVITIES - Nonhedging Designation (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2021	Dec. 31, 2020	Dec. 31, 2019
Derivatives not designated as hedging instruments \| Foreign currency exchange contracts \| Interest and other income, net
Net gains on derivative instruments
Amount of gain recognized in income on derivatives	$ (5,445)	$ (3,317)	$ (2,555)

SEGMENT INFORMATION - Net Revenues (Details) $ in Thousands	12 Months Ended
SEGMENT INFORMATION - Net Revenues (Details) $ in Thousands	Dec. 31, 2021 USD ($) segment	Dec. 31, 2020 USD ($)	Dec. 31, 2019 USD ($)
Segment information
Number of reportable segments \| segment	3
Number of operating segments \| segment	3
Total Net Sales	$ 5,541,352	$ 4,598,638	$ 4,200,819
Operating income	1,797,467	1,633,153	1,402,939
Income before tax	1,801,419	1,626,157	1,415,962
Recognition of deferred revenue	21,500	21,400	25,000
Corporate and Unallocated
Segment information
Operating income	373,913	348,170	330,741
Income before tax	(371,440)	(355,448)	(318,764)
Monster Energy Drinks
Segment information
Total Net Sales	5,220,673	4,305,246	3,904,029
Monster Energy Drinks \| Operating segment
Segment information
Total Net Sales	5,220,673	4,305,246	3,904,029
Operating income	1,990,785	1,820,346	1,565,977
Income before tax	1,992,185	1,820,625	1,567,022
Recognition of deferred revenue	41,500	42,100	46,300
Strategic Brands
Segment information
Total Net Sales	294,762	266,354	274,925
Strategic Brands \| Operating segment
Segment information
Total Net Sales	294,762	266,354	274,925
Operating income	173,660	155,047	164,053
Income before tax	173,739	155,047	164,049
Other
Segment information
Total Net Sales	25,917	27,038	21,865
Other \| Operating segment
Segment information
Total Net Sales	25,917	27,038	21,865
Operating income	6,935	5,930	3,650
Income before tax	$ 6,935	$ 5,933	$ 3,655

STOCK-BASED COMPENSATION - Fair Value Assumptions (Details) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended				12 Months Ended
	Dec. 31, 2021	Sep. 30, 2021	Jun. 30, 2021	Mar. 31, 2021	Dec. 31, 2021	Dec. 31, 2020	Dec. 31, 2019
Weighted-average assumptions used to estimate the fair value of options granted
Dividend yield (as a percent)					0.00%	0.00%	0.00%
Expected volatility (as a percent)					28.90%	30.40%	30.20%
Risk-free interest rate (as a percent)					0.85%	0.70%	2.37%
Expected term					5 years 9 months 18 days	5 years 9 months 18 days	6 years
2011 Omnibus Incentive Plan
Stock options, Number of Shares
Granted (in shares)					2,755,257
2017 Directors plan
Stock options, Number of Shares
Granted (in shares)					98,901
Stock options
Stock options, Number of Shares
Balance at the beginning of the period (in shares)				13,973,000	13,973,000
Granted (in shares)	12,000	23,000	13,000	1,015,000
Exercised (in shares)					(1,037,000)
Cancelled or forfeited (in shares)					(139,000)
Balance at the end of the period (in shares)	13,860,000				13,860,000	13,973,000
Vested and expected to vest in the future at the end of the period (in shares)	13,633,000				13,633,000
Exercisable at the end of the period (in shares)	9,644,000				9,644,000
Stock options, Weighted-Average Exercise Price Per Share
Balance at the beginning of the period (in dollars per share)				$ 44.93	$ 44.93
Granted (in dollars per share)	$ 87.00	$ 95.33	$ 91.36	$ 88.95
Exercised (in dollars per share)					44.10
Cancelled or forfeited (in dollars per share)					63.05
Balance at the end of the period (in dollars per share)	48.19				48.19	$ 44.93
Vested and expected to vest in the future at the end of the period (in dollars per share)	47.80				47.80
Exercisable at the end of the period (in dollars per share)	$ 40.33				$ 40.33
Weighted-Average Remaining Contractual Term (in years)
Weighted-Average Remaining Contractual Terms (in years)					5 years 1 month 6 days	5 years 8 months 12 days
Vested and expected to vest in the future at the end of the period					5 years
Exercisable at the end of the period					4 years
Aggregate Intrinsic Value
Balance at the beginning of the period				$ 664,432	$ 664,432
Balance at the end of the period	$ 663,148				663,148	$ 664,432
Vested and expected to vest in the future at the end of the period	657,633				657,633
Exercisable at the end of the period	$ 537,261				$ 537,261

PROPERTY AND EQUIPMENT, Net

12 Months Ended

Dec. 31, 2021

PROPERTY AND EQUIPMENT, Net

PROPERTY AND EQUIPMENT, Net

8. PROPERTY AND EQUIPMENT, Net

Property and equipment consist of the following at December 31:


	2021		2020
Land	$	85,455	$	85,876
Leasehold improvements		11,845		11,524
Furniture and fixtures		8,274		8,271
Office and computer equipment		21,601		21,657
Computer software		8,383		6,945
Equipment		190,333		185,348
Buildings		167,243		156,616
Vehicles		45,404		43,173
		538,538		519,410
Less: accumulated depreciation and amortization		(224,785)		(204,754)
	$	313,753	$	314,656

Total depreciation and amortization expense recorded was $45.7 million, $49.3 million and $49.1 million for the years ended December 31, 2021, 2020 and 2019, respectively.