0001104659-22-057028 | 10-Q | XBRL Viewer

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REVENUE RECOGNITION - Disaggregation of Revenue (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2022	Mar. 31, 2021	Dec. 31, 2021
Total Net Sales	$ 1,518,574	$ 1,243,816
Contract Liabilities
Deferred revenue	280,800		$ 285,800
Deferred revenue recognized in net sales	10,000	10,400
U.S. and Canada
Total Net Sales	999,865	816,914
EMEA
Total Net Sales	291,065	239,209
Asia Pacific
Total Net Sales	117,218	115,185
Latin America and Caribbean
Total Net Sales	110,426	72,508
Monster Energy Drinks
Total Net Sales	1,404,847	1,170,280
Monster Energy Drinks \| U.S. and Canada
Total Net Sales	925,680	773,504
Monster Energy Drinks \| EMEA
Total Net Sales	260,889	219,300
Monster Energy Drinks \| Asia Pacific
Total Net Sales	110,556	106,747
Monster Energy Drinks \| Latin America and Caribbean
Total Net Sales	107,722	70,729
Strategic Brands
Total Net Sales	92,593	67,809
Strategic Brands \| U.S. and Canada
Total Net Sales	53,051	37,683
Strategic Brands \| EMEA
Total Net Sales	30,176	19,909
Strategic Brands \| Asia Pacific
Total Net Sales	6,662	8,438
Strategic Brands \| Latin America and Caribbean
Total Net Sales	2,704	1,779
Other
Total Net Sales	5,927	5,727
Other \| U.S. and Canada
Total Net Sales	5,927	$ 5,727
Alcohol Brands
Total Net Sales	15,207
Alcohol Brands \| U.S. and Canada
Total Net Sales	$ 15,207

TREASURY STOCK	3 Months Ended
Mar. 31, 2022
TREASURY STOCK
TREASURY STOCK	14. TREASURY STOCK On March 13, 2020, the Company’s Board of Directors authorized a share repurchase program for the purchase of up to $500.0 million of the Company’s outstanding common stock (the “March 2020 Repurchase Plan”). During the three-months ended March 31, 2022, no shares were repurchased under the March 2020 Repurchase Plan. As of May 6, 2022, $441.5 million remained available for repurchase under the March 2020 Repurchase Plan. During the three-months ended March 31, 2022, 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 $12.2 million.

TREASURY STOCK

3 Months Ended

Mar. 31, 2022

TREASURY STOCK

TREASURY STOCK

14. TREASURY STOCK

On March 13, 2020, the Company’s Board of Directors authorized a share repurchase program for the purchase of up to $500.0 million of the Company’s outstanding common stock (the “March 2020 Repurchase Plan”). During the three-months ended March 31, 2022, no shares were repurchased under the March 2020 Repurchase Plan. As of May 6, 2022, $441.5 million remained available for repurchase under the March 2020 Repurchase Plan.

During the three-months ended March 31, 2022, 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 $12.2 million.

ACCUMULATED OTHER COMPREHENSIVE LOSS (Tables)

3 Months Ended

Mar. 31, 2022

ACCUMULATED OTHER COMPREHENSIVE LOSS

Schedule of components of accumulated other comprehensive loss


			Unrealized
	Currency		Losses on
	Translation		Available-for-
	Losses		Sale Securities		Total
Balance at December 31, 2021	$	(68,209)	$	(956)	$	(69,165)
Other comprehensive (loss) income before reclassifications		1,079		(4,059)		(2,980)
Amounts reclassified from accumulated other comprehensive (loss) income		—		—		—
Net current-period other comprehensive (loss) income		1,079		(4,059)		(2,980)
Balance at March 31, 2022	$	(67,130)	$	(5,015)	$	(72,145)


			Unrealized
	Currency		Gains on
	Translation		Available-for-
	Losses		Sale Securities		Total
Balance at December 31, 2020	$	2,950	$	84	$	3,034
Other comprehensive (loss) income before reclassifications		(27,932)		24		(27,908)
Amounts reclassified from accumulated other comprehensive (loss) income		—		—		—
Net current-period other comprehensive (loss) income		(27,932)		24		(27,908)
Balance at March 31, 2021	$	(24,982)	$	108	$	(24,874)

DERIVATIVE INSTRUMENTS AND HEDGING ACTIVITIES - Notional Amount and Fair Value (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2022	Dec. 31, 2021
Foreign currency exchange contracts \| Maximum
Derivative Instruments and Hedging Activities
Term of derivative instrument	1 month
Derivatives not designated as hedging instruments \| Accounts receivables, net \| Receive SGD/pay USD
Derivative Instruments and Hedging Activities
Notional amount, Assets	$ 16,662	$ 16,544
Fair Value, Assets	88	297
Derivatives not designated as hedging instruments \| Accounts receivables, net \| Receive RSD/pay USD
Derivative Instruments and Hedging Activities
Notional amount, Assets	9,913	9,837
Fair Value, Assets	138	46
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 CNY
Derivative Instruments and Hedging Activities
Notional amount, Assets	12,353
Fair Value, Assets	13
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 USD/pay GBP
Derivative Instruments and Hedging Activities
Notional amount, Liabilities	19,410	29,929
Fair Value, Liabilities	(34)	(666)
Derivatives not designated as hedging instruments \| Accrued liabilities \| Receive USD/pay EUR
Derivative Instruments and Hedging Activities
Notional amount, Liabilities	19,061	3,045
Fair Value, Liabilities	(317)	(29)
Derivatives not designated as hedging instruments \| Accrued liabilities \| Receive USD/pay RUB
Derivative Instruments and Hedging Activities
Notional amount, Liabilities	5,382
Fair Value, Liabilities	(3,888)
Derivatives not designated as hedging instruments \| Accrued liabilities \| Receive USD/pay AUD
Derivative Instruments and Hedging Activities
Notional amount, Liabilities	871	2,602
Fair Value, Liabilities	(28)	(88)
Derivatives not designated as hedging instruments \| Accrued liabilities \| Receive USD/pay CNY
Derivative Instruments and Hedging Activities
Notional amount, Liabilities		12,230
Fair Value, Liabilities		(74)
Derivatives not designated as hedging instruments \| Accrued liabilities \| Receive USD/pay COP
Derivative Instruments and Hedging Activities
Notional amount, Liabilities	10,097
Fair Value, Liabilities	(51)
Derivatives not designated as hedging instruments \| Accrued liabilities \| Receive USD/pay ZAR
Derivative Instruments and Hedging Activities
Notional amount, Liabilities	5,398	4,140
Fair Value, Liabilities	(281)	(21)
Derivatives not designated as hedging instruments \| Accrued liabilities \| Receive USD/pay DKK
Derivative Instruments and Hedging Activities
Notional amount, Liabilities	3,335	1,461
Fair Value, Liabilities	(59)	(9)
Derivatives not designated as hedging instruments \| Accrued liabilities \| Receive USD/pay NZD
Derivative Instruments and Hedging Activities
Notional amount, Liabilities	4,095	2,693
Fair Value, Liabilities	$ (64)	$ (45)

DERIVATIVE INSTRUMENTS AND HEDGING ACTIVITIES (Tables)

3 Months Ended

Mar. 31, 2022

DERIVATIVE INSTRUMENTS AND HEDGING ACTIVITIES

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


March 31, 2022
Derivatives not designated as
hedging instruments under	Notional		Fair
ASC 815-20	Amount		Value		Balance Sheet Location
Assets:
Foreign currency exchange contracts:
Receive RSD/pay USD	$	9,913	$	138	Accounts receivable, net
Receive SGD/pay USD		16,662		88	Accounts receivable, net
Receive USD/pay CNY		12,353		13	Accounts receivable, net

Liabilities:
Foreign currency exchange contracts:
Receive USD/pay RUB	$	5,382	$	(3,888)	Accrued liabilities
Receive USD/pay EUR		19,061		(317)	Accrued liabilities
Receive USD/pay ZAR		5,398		(281)	Accrued liabilities
Receive USD/pay NZD		4,095		(64)	Accrued liabilities
Receive USD/pay DKK		3,335		(59)	Accrued liabilities
Receive USD/pay COP		10,097		(51)	Accrued liabilities
Receive USD/pay GBP		19,410		(34)	Accrued liabilities
Receive USD/pay AUD		871		(28)	Accrued liabilities


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

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

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


		Amount of loss
		recognized in income on
		derivatives
Derivatives not designated as	Location of loss	Three-months ended
hedging instruments under	recognized in income on	March 31,		March 31,
ASC 815-20	derivatives	2022		2021
Foreign currency exchange contracts	Interest and other expense, net	$	4,019	$	3,870

RELATED PARTY TRANSACTIONS (Tables)

3 Months Ended

Mar. 31, 2022

RELATED PARTY TRANSACTIONS

Schedule of related party transactions


	March 31,		December 31,
	2022		2021
Accounts receivable, net	$	115,497	$	94,647
Accounts payable	$	(37,629)	$	(35,248)
Accrued promotional allowances	$	(7,254)	$	(4,536)
Accrued liabilities	$	(35,849)	$	(26,616)

DERIVATIVE INSTRUMENTS AND HEDGING ACTIVITIES

3 Months Ended

Mar. 31, 2022

DERIVATIVE INSTRUMENTS AND HEDGING ACTIVITIES

DERIVATIVE INSTRUMENTS AND HEDGING ACTIVITIES

7.	DERIVATIVE INSTRUMENTS AND HEDGING ACTIVITIES

The Company is exposed to foreign currency exchange rate risks related primarily to its foreign business operations. During the three-months ended March 31, 2022 and the year-ended December 31, 2021, the Company entered into forward currency exchange contracts with financial institutions to create an economic hedge to specifically manage a portion of the foreign exchange risk exposure associated with certain consolidated subsidiaries’ non-functional currency denominated assets and liabilities. All foreign currency exchange contracts of the Company that were outstanding as of March 31, 2022 have terms of one month or less. The Company does not enter into forward currency exchange contracts for speculation or trading purposes.

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

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


March 31, 2022
Derivatives not designated as
hedging instruments under	Notional		Fair
ASC 815-20	Amount		Value		Balance Sheet Location
Assets:
Foreign currency exchange contracts:
Receive RSD/pay USD	$	9,913	$	138	Accounts receivable, net
Receive SGD/pay USD		16,662		88	Accounts receivable, net
Receive USD/pay CNY		12,353		13	Accounts receivable, net

Liabilities:
Foreign currency exchange contracts:
Receive USD/pay RUB	$	5,382	$	(3,888)	Accrued liabilities
Receive USD/pay EUR		19,061		(317)	Accrued liabilities
Receive USD/pay ZAR		5,398		(281)	Accrued liabilities
Receive USD/pay NZD		4,095		(64)	Accrued liabilities
Receive USD/pay DKK		3,335		(59)	Accrued liabilities
Receive USD/pay COP		10,097		(51)	Accrued liabilities
Receive USD/pay GBP		19,410		(34)	Accrued liabilities
Receive USD/pay AUD		871		(28)	Accrued liabilities


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

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


		Amount of loss
		recognized in income on
		derivatives
Derivatives not designated as	Location of loss	Three-months ended
hedging instruments under	recognized in income on	March 31,		March 31,
ASC 815-20	derivatives	2022		2021
Foreign currency exchange contracts	Interest and other expense, net	$	4,019	$	3,870

GOODWILL AND OTHER INTANGIBLE ASSETS

3 Months Ended

Mar. 31, 2022

GOODWILL AND OTHER INTANGIBLE ASSETS

GOODWILL AND OTHER INTANGIBLE ASSETS

10. GOODWILL AND OTHER INTANGIBLE ASSETS

The following is a roll-forward of goodwill for the three-months ended March 31, 2022 and 2021 by reportable segment:


	Monster
	Energy®		Strategic		Alcohol
	Drinks		Brands		Brands		Other		Total
Balance at December 31, 2021	$	693,644	$	637,999	$	—	$	—	$	1,331,643
Acquisitions		—		—		80,285		—		80,285
Balance at March 31, 2022	$	693,644	$	637,999	$	80,285	$	—	$	1,411,928


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

Intangible assets consist of the following at:


	March 31,		December 31,
	2022		2021
Amortizing intangibles	$	121,372	$	66,872
Accumulated amortization		(62,761)		(61,227)
		58,611		5,645
Non-amortizing intangibles		1,173,502		1,066,741
	$	1,232,113	$	1,072,386

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 fifteen years. Total amortization expense recorded was $1.5 million and $1.1 million for the three-months ended March 31, 2022 and March 31, 2021, respectively.

The following is the future estimated amortization expense related to amortizing intangibles as of March 31, 2022:


2022 (excluding the three-months ended March 31, 2022)	$	6,029
2023		4,745
2024		3,647
2025		3,647
2026		3,646
2027 and thereafter		36,897
	$	58,611

PROPERTY AND EQUIPMENT, NET

3 Months Ended

Mar. 31, 2022

PROPERTY AND EQUIPMENT, NET

PROPERTY AND EQUIPMENT, NET

9.	PROPERTY AND EQUIPMENT, NET

Property and equipment consist of the following at:


	March 31,		December 31,
	2022		2021
Land	$	86,522	$	85,455
Leasehold improvements		31,272		11,845
Furniture and fixtures		9,185		8,274
Office and computer equipment		23,026		21,601
Computer software		8,085		8,383
Equipment		251,184		190,333
Buildings		186,371		167,243
Vehicles		47,603		45,404
		643,248		538,538
Less: accumulated depreciation and amortization		(235,857)		(224,785)
	$	407,391	$	313,753

Total depreciation and amortization expense recorded was $13.1 million and $11.7 million for the three-months ended March 31, 2022 and 2021, respectively.

STOCK-BASED COMPENSATION - Fair Value Assumptions (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands	3 Months Ended		12 Months Ended
	Mar. 31, 2022	Mar. 31, 2021	Dec. 31, 2021
Stock options, Number of Shares
Balance at the beginning of the period (in shares)	13,860
Exercised (in shares)	(114)
Cancelled or forfeited (in shares)	(17)
Balance at the end of the period (in shares)	16,218		13,860
Vested and expected to vest in the future at the end of the period (in shares)	15,723
Exercisable at the end of the period (in shares)	10,862
Stock options, Weighted-Average Exercise Price Per Share
Balance at the beginning of the period (in dollars per share)	$ 48.19
Exercised (in dollars per share)	39.57
Cancelled or forfeited (in dollars per share)	65.92
Balance at the end of the period (in dollars per share)	52.19		$ 48.19
Vested and expected to vest in the future at the end of the period (in dollars per share)	51.52
Exercisable at the end of the period (in dollars per share)	$ 42.96
Weighted-Average Remaining Contractual Term (in years)
Weighted-Average Remaining Contractual Terms (in years)	5 years 7 months 6 days		5 years 1 month 6 days
Vested and expected to vest in the future at the end of the period	5 years 6 months
Exercisable at the end of the period	4 years 1 month 6 days
Aggregate Intrinsic Value
Balance at the beginning of the period	$ 663,148
Balance at the end of the period	459,540		$ 663,148
Vested and expected to vest in the future at the end of the period	455,553
Exercisable at the end of the period	$ 402,706
Granted 01/01/22 - 03/31/22
Stock options, Number of Shares
Granted (in shares)	2,489
Stock options, Weighted-Average Exercise Price Per Share
Granted (in dollars per share)	$ 73.96
Stock options
Weighted-average assumptions used to estimate the fair value of options granted
Dividend yield (as a percent)	0.00%	0.00%
Expected volatility (as a percent)	27.70%	28.90%
Risk-free interest rate (as a percent)	2.10%	0.80%
Expected term	6 years	5 years 9 months 18 days

SEGMENT INFORMATION - Concentration Risk (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2022	Mar. 31, 2021
Segment information
Total Net Sales	$ 1,518,574	$ 1,243,816
Sales \| Outside United States
Segment information
Total Net Sales	$ 553,400	$ 459,400
Sales \| Customer concentration \| Outside United States
Segment information
Percentage of net sales	36.00%	37.00%
Coca-Cola Consolidated, Inc \| Sales \| Customer concentration
Segment information
Percentage of net sales	9.00%	12.00%
Reyes Coca-Cola Bottling \| Sales \| Customer concentration
Segment information
Percentage of net sales	10.00%	9.00%
Coca-Cola European Partners \| Sales \| Customer concentration
Segment information
Percentage of net sales	12.00%	11.00%

- Definition

Amount, excluding tax collected from customer, of revenue from satisfaction of performance obligation by transferring promised good or service to customer. Tax collected from customer is tax assessed by governmental authority that is both imposed on and concurrent with specific revenue-producing transaction, including, but not limited to, sales, use, value added and excise.

+ References

Reference 1: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
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-Section 50
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Reference 2: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
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-Paragraph 40
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Reference 3: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
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-SubTopic 10
-Section 50
-Paragraph 41
-Subparagraph (a)
-URI http://asc.fasb.org/extlink&oid=123359005&loc=d3e9038-108599

Reference 4: http://www.xbrl.org/2003/role/disclosureRef
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-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 32
-Subparagraph (b)
-URI http://asc.fasb.org/extlink&oid=123359005&loc=d3e8933-108599

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-Publisher FASB
-Name Accounting Standards Codification
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Reference 6: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
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Reference 7: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
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-Paragraph 22
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-URI http://asc.fasb.org/extlink&oid=123359005&loc=d3e8736-108599

Reference 8: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
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-Subparagraph (a)
-URI http://asc.fasb.org/extlink&oid=123359005&loc=d3e8736-108599

Reference 9: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 42
-URI http://asc.fasb.org/extlink&oid=123359005&loc=d3e9054-108599

Reference 10: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 606
-SubTopic 10
-Section 50
-Paragraph 5
-URI http://asc.fasb.org/extlink&oid=123351226&loc=SL49130545-203045

Reference 11: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 924
-SubTopic 10
-Section S99
-Paragraph 1
-Subparagraph (SAB Topic 11.L)
-URI http://asc.fasb.org/extlink&oid=6472922&loc=d3e499488-122856

+ Details

FAIR VALUE OF CERTAIN FINANCIAL ASSETS AND LIABILITIES (Tables)

3 Months Ended

Mar. 31, 2022

FAIR VALUE OF CERTAIN FINANCIAL ASSETS AND LIABILITIES

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


March 31, 2022	Level 1		Level 2		Level 3		Total
Cash	$	748,324	$	—	$	—	$	748,324
Money market funds		138,161		—		—		138,161
Certificates of deposit		—		38,411		—		38,411
Commercial paper		—		290,410		—		290,410
Municipal securities		—		202,667		—		202,667
U.S. government agency securities		—		99,786		—		99,786
U.S. treasuries		—		1,280,327		—		1,280,327
Foreign currency derivatives		—		(4,483)		—		(4,483)
Total	$	886,485	$	1,907,118	$	—	$	2,793,603

Amounts included in:
Cash and cash equivalents	$	886,485	$	128,301	$	—	$	1,014,786
Short-term investments		—		1,717,648		—		1,717,648
Accounts receivable, net		—		239		—		239
Investments		—		65,652		—		65,652
Accrued liabilities		—		(4,722)		—		(4,722)
Total	$	886,485	$	1,907,118	$	—	$	2,793,603


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

SEGMENT INFORMATION

3 Months Ended

Mar. 31, 2022

SEGMENT INFORMATION

SEGMENT INFORMATION

18. SEGMENT INFORMATION

The Company has four 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, (iii) Alcohol Brands segment, which is primarily comprised of the various craft beers and hard seltzers purchased as part of the CANarchy Transaction on February 17, 2022 and (iv) 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.

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.

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.

The Company’s Alcohol Brands segment primarily generates operating revenues by selling kegged and canned beer as well as hard seltzers primarily to distributors in the United States.

Generally, the Alcohol Brands segment will have lower gross profit margin percentages than the Monster Energy® Drinks segment.

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

The net revenues derived from the Company’s reportable segments and other financial information related thereto for the three-months ended March 31, 2022 and 2021 are as follows:


	Three-Months Ended
	March 31,
	2022		2021
Net sales:
Monster Energy® Drinks¹	$	1,404,847	$	1,170,280
Strategic Brands		92,593		67,809
Alcohol Brands²		15,207		—
Other		5,927		5,727
Corporate and unallocated		—		—
	$	1,518,574	$	1,243,816


	Three-Months Ended
	March 31,
	2022		2021
Operating Income:
Monster Energy® Drinks¹	$	454,563	$	464,819
Strategic Brands		57,195		45,140
Alcohol Brands²		(4,953)		—
Other		1,127		1,793
Corporate and unallocated		(108,443)		(97,606)
	$	399,489	$	414,146


	Three-Months Ended
	March 31,
	2022		2021
Income before tax:
Monster Energy® Drinks¹	$	455,134	$	464,968
Strategic Brands		57,254		45,140
Alcohol Brands²		(5,606)		—
Other		1,137		1,793
Corporate and unallocated		(115,730)		(98,514)
	$	392,189	$	413,387

(1)

Includes $10.0 million and $10.4 million for the three-months ended March 31, 2022 and 2021, respectively, related to the recognition of deferred revenue.

(2)

Effectively from February 17, 2022 to March 31, 2022.


	Three-Months Ended
	March 31,
	2022		2021
Depreciation and amortization:
Monster Energy® Drinks	$	8,159	$	9,022
Strategic Brands		233		264
Alcohol Brands		2,283		—
Other		1,110		1,126
Corporate and unallocated		2,814		2,413
	$	14,599	$	12,825

Corporate and unallocated expenses for the three-months ended March 31, 2022 include $68.1 million of payroll costs, of which $16.2 million was attributable to stock-based compensation expenses (see Note 15 “Stock-Based Compensation”), as well as $26.4 million attributable to professional service expenses, including accounting and legal costs, and $13.9 million of other operating expenses.

Corporate and unallocated expenses for the three-months ended March 31, 2021 include $65.1 million of payroll costs, of which $18.3 million was attributable to stock-based compensation expenses (see Note 15 “Stock-Based Compensation”), as well as $20.4 million attributable to professional service expenses, including accounting and legal costs, and $12.1 million of other operating expenses.

Coca-Cola Europacific Partners (formerly Coca-Cola European Partners) accounted for approximately 12% and 11% of the Company’s net sales for the three-months ended March 31, 2022 and 2021, respectively.

Coca-Cola Consolidated, Inc. accounted for approximately 9% and 12% of the Company’s net sales for the three-months ended March 31, 2022 and 2021, respectively.

Reyes Coca-Cola Bottling, LLC accounted for approximately 10% and 9% of the Company’s net sales for the three-months ended March 31, 2022 and 2021, respectively.

Net sales to customers outside the United States amounted to $553.4 million and $459.4 million for the three-months ended March 31, 2022 and 2021, respectively. Such sales were approximately 36% and 37% of net sales for three-months ended March 31, 2022 and 2021, respectively.

Goodwill and other intangible assets for the Company’s reportable segments as of March 31, 2022 and December 31, 2021 are as follows:


	March 31,		December 31,
	2022		2021
Goodwill and other intangible assets:
Monster Energy® Drinks	$	1,425,023	$	1,420,503
Strategic Brands		979,268		978,032
Alcohol Brands		235,353		—
Other		4,397		5,494
Corporate and unallocated		—		—
	$	2,644,041	$	2,404,029

- Definition

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

+ References

Reference 1: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 31
-URI http://asc.fasb.org/extlink&oid=123359005&loc=d3e8924-108599

Reference 2: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 34
-URI http://asc.fasb.org/extlink&oid=123359005&loc=d3e8981-108599

Reference 3: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 21
-Subparagraph (a)
-URI http://asc.fasb.org/extlink&oid=123359005&loc=d3e8721-108599

Reference 4: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 40
-URI http://asc.fasb.org/extlink&oid=123359005&loc=d3e9031-108599

Reference 5: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 32
-Subparagraph (f)
-URI http://asc.fasb.org/extlink&oid=123359005&loc=d3e8933-108599

Reference 6: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 32
-Subparagraph (e)
-URI http://asc.fasb.org/extlink&oid=123359005&loc=d3e8933-108599

Reference 7: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 26
-URI http://asc.fasb.org/extlink&oid=123359005&loc=d3e8844-108599

Reference 8: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 41
-URI http://asc.fasb.org/extlink&oid=123359005&loc=d3e9038-108599

Reference 9: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 32
-Subparagraph (d)
-URI http://asc.fasb.org/extlink&oid=123359005&loc=d3e8933-108599

Reference 10: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 22
-URI http://asc.fasb.org/extlink&oid=123359005&loc=d3e8736-108599

Reference 11: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 42
-URI http://asc.fasb.org/extlink&oid=123359005&loc=d3e9054-108599

Reference 12: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 15
-URI http://asc.fasb.org/extlink&oid=123359005&loc=d3e8657-108599

Reference 13: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 21
-Subparagraph (b)
-URI http://asc.fasb.org/extlink&oid=123359005&loc=d3e8721-108599

Reference 14: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-URI http://asc.fasb.org/topic&trid=2134510

+ Details

DERIVATIVE INSTRUMENTS AND HEDGING ACTIVITIES - Nonhedging Designation (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2022	Mar. 31, 2021
Derivatives not designated as hedging instruments \| Foreign currency exchange contracts \| Interest and other income, net
Net gains on derivative instruments
Amount of loss recognized in income on derivatives	$ 4,019	$ 3,870

COMMITMENTS AND CONTINGENCIES - Litigation (Details) $ in Thousands	Mar. 31, 2022 USD ($)
COMMITMENTS AND CONTINGENCIES
Loss contingencies	$ 0

LEASES (Tables)

3 Months Ended

Mar. 31, 2022

LEASES

Schedule of lease cost


	Three-Months		Three-Months
	Ended March 31,		Ended March 31,
	2022		2021
Operating lease cost	$	1,694	$	1,131

Short-term lease cost		929		953

Variable lease cost		183		162

Finance leases:
Amortization of ROU assets		127		134
Interest on lease liabilities		3		4
Finance lease cost		130		138

Total lease cost	$	2,936	$	2,384

Schedule of supplemental cash flow information for leases


	Three-Months		Three-Months
	Ended March 31,		Ended March 31,
	2022		2021
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash outflows from operating leases	$	1,652	$	991
Operating cash outflows from finance leases		3		4
Financing cash outflows from finance leases		592		689

ROU assets obtained in exchange for lease obligations:
Finance leases		832		1,495
Operating leases		13,197		36

Schedule of ROU assets for operating and finance leases


	March 31, 2022
	Real Estate		Equipment		Total		Balance Sheet Location
Operating leases	$	33,644	$	558	$	34,202	Other Assets
Finance leases		—		2,035		2,035	Property and Equipment, net


	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

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


	March 31, 2022
	Operating Leases		Finance Leases
Accrued liabilities	$	6,398	$	1,205
Other liabilities		26,713		36
Total	$	33,111	$	1,241


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

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


	March 31, 2022
	Operating Leases		Finance Leases
Weighted-average remaining lease term (years)	7.1		0.9
Weighted-average discount rate	3.2	%	1.6	%


	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	%

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


	Undiscounted Future Lease Payments
	Operating Leases		Finance Leases
2022 (excluding the three-months ended March 31, 2022)	$	5,527	$	1,030
2023		6,531		200
2024		5,323		13
2025		4,034		8
2026		3,179		—
2027 and thereafter		12,674		—
Total lease payments		37,268		1,251
Less imputed interest		(4,157)		(10)
Total	$	33,111	$	1,241

CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED) (Parenthetical) - $ / shares shares in Thousands	Mar. 31, 2022	Dec. 31, 2021
CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)
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	640,528	640,043
Common stock, shares outstanding	529,642	529,323
Common stock in treasury, shares	110,886	110,720

DISTRIBUTION AGREEMENTS (Details) - USD ($) $ in Millions	3 Months Ended
DISTRIBUTION AGREEMENTS (Details) - USD ($) $ in Millions	Mar. 31, 2022	Mar. 31, 2021
DISTRIBUTION AGREEMENTS
Distribution agreement (in years)	20 years
Revenue recognized	$ 10.0	$ 10.4

LEASES - Lease Cost (Details) - USD ($) $ in Thousands	3 Months Ended
LEASES - Lease Cost (Details) - USD ($) $ in Thousands	Mar. 31, 2022	Mar. 31, 2021
LEASES
Operating lease cost	$ 1,694	$ 1,131
Short-term lease cost	929	953
Variable lease cost	183	162
Finance leases:
Amortization of ROU assets	127	134
Interest on lease liabilities	3	4
Finance lease cost	130	138
Total lease cost	$ 2,936	$ 2,384

CONDENSED 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, 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	$ 0	17,949	0	0	$ 0	17,949
Exercise of stock options	$ 3	6,758	0	0	$ 0	6,761
Exercise of stock options (in shares)	492				0
Unrealized gain, net on available-for-sale securities	$ 0	0	0	24	$ 0	24
Repurchase of common stock	$ 0	0	0	0	$ (13,419)	(13,419)
Repurchase of common stock (in shares)	0				(150)
Foreign currency translation	$ 0	0	0	(27,932)	$ 0	(27,932)
Net income	0	0	315,194	0	0	315,194
Balance at Mar. 31, 2021	$ 3,196	4,562,689	6,747,268	(24,874)	$ (5,828,842)	5,459,437
Balance (in shares) at Mar. 31, 2021	639,154				(110,715)
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)
Increase (Decrease) in Stockholders' Equity
Stock-based compensation		16,175				16,175
Exercise of stock options	$ 3	4,507				$ 4,510
Exercise of stock options (in shares)	485					114
Unrealized loss, net on available-for-sale securities				(4,059)		$ (4,059)
Repurchase of common stock					$ (12,187)	(12,187)
Repurchase of common stock (in shares)					(166)
Foreign currency translation				1,079		1,079
Net income			294,203			294,203
Balance at Mar. 31, 2022	$ 3,203	$ 4,673,302	$ 8,103,752	$ (72,145)	$ (5,841,440)	$ 6,866,672
Balance (in shares) at Mar. 31, 2022	640,528				(110,886)

EARNINGS PER SHARE

3 Months Ended

Mar. 31, 2022

EARNINGS PER SHARE

EARNINGS PER SHARE

17. EARNINGS PER SHARE

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


	Three-Months Ended
	March 31,
	2022	2021
Weighted-average shares outstanding:
Basic	529,405	528,195
Dilutive	6,149	6,787
Diluted	535,554	534,982

For the three-months ended March 31, 2022 and 2021, options and awards outstanding totaling 1.6 million shares and 0.2 million shares, respectively, were excluded from the calculations as their effect would have been antidilutive.

RELATED PARTY TRANSACTIONS

3 Months Ended

Mar. 31, 2022

RELATED PARTY TRANSACTIONS

RELATED PARTY TRANSACTIONS

19. 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/distributors purchase and distribute the Company’s products in domestic and certain international markets. The Company also pays TCCC a commission based on certain sales within the TCCC distribution network.

TCCC commissions, based on sales to the TCCC Subsidiaries and the TCCC Related Parties, were $18.4 million and $16.1 million for the three-months ended March 31, 2022 and 2021, respectively, and are included as a reduction to net sales.

TCCC commissions, based on sales to TCCC independent bottlers/distributors, were $11.0 million and $5.5 million for the three-months ended March 31, 2022 and 2021, respectively, and are included in operating expenses.

Net sales to the TCCC Subsidiaries for the three-months ended March 31, 2022 and 2021 were $31.8 million and $27.1 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 $8.5 million and $6.4 million for the three-months ended March 31, 2022 and 2021, respectively.

Certain TCCC Subsidiaries also contract manufacture certain of the Company’s energy drinks. Such contract manufacturing expenses were $9.2 million and $7.4 million for the three-months ended March 31, 2022 and 2021, respectively.

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


	March 31,		December 31,
	2022		2021
Accounts receivable, net	$	115,497	$	94,647
Accounts payable	$	(37,629)	$	(35,248)
Accrued promotional allowances	$	(7,254)	$	(4,536)
Accrued liabilities	$	(35,849)	$	(26,616)

In 2021, TCCC exercised its contract rights for a third-party public accounting firm (the "Accounting Firm") to conduct an examination relating to commissions and fees payable to TCCC and marketing contributions payable to the Company, for the years ended December 31, 2015 through December 31, 2020. The Company understands that the Accounting Firm has advised TCCC that it may be entitled to additional commissions and fees and/or reduced amounts of marketing contributions due to the Company in an aggregate amount of up to approximately $65.0 million. No portion of such amounts have been recognized in the Company’s condensed consolidated financial statements at March 31, 2022. The Company disputes any liability for additional commissions or fees payable to TCCC or reduced amounts of marketing contributions due to the Company for these periods.

One director of the Company through certain trusts, and a family member of one director are the principal owners of a company that provides promotional materials to the Company. Expenses incurred with such company in connection with promotional materials purchased during the three-months ended March 31, 2022 and 2021 were $1.1 million and $0.4 million, respectively.

During the three-months ended March 31, 2022, the Company occasionally chartered a private aircraft that is indirectly owned by Mr. Rodney C. Sacks, Co-Chief Executive Officer and Chairman of the Board of Directors. On certain occasions, Mr. Sacks was accompanied by guests and other Company personnel when using such aircraft for business travel. During the three-months ended March 31, 2022, the Company incurred costs of $0.08 million, an amount the Company believes is commensurate with market rates for comparable travel.

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 three-months ended March 31, 2022, the Company recorded an equity loss of $0.03 million As of March 31, 2022, the Company’s equity investment is $1.3 million and is included in other assets (non-current) in the accompanying condensed consolidated balance sheet. At March 31, 2022 and December 31, 2021, the Company had $6.1 million and $3.4 million, respectively, in loans receivable from the partnership.

INVESTMENTS

3 Months Ended

Mar. 31, 2022

INVESTMENTS

INVESTMENTS

5.	INVESTMENTS

The following table summarizes the Company’s investments at:


									Continuous		Continuous
			Gross		Gross				Unrealized		Unrealized
			Unrealized		Unrealized				Loss Position		Loss Position
	Amortized		Holding		Holding		Fair		less than 12		greater than 12
March 31, 2022	Cost		Gains		Losses		Value		Months		Months
Available-for-sale
Short-term:
Commercial paper	$	276,413	$	—	$	—	$	276,413	$	—	$	—
Certificates of deposit		37,010		—		—		37,010		—		—
Municipal securities		168,958		2		482		168,478		482
U.S. government agency securities		78,831		—		342		78,489		342		—
U.S. treasuries		1,161,042		—		3,784		1,157,258		3,784		—
Long-term:
U.S. government agency securities		21,455		—		158		21,297		158		—
Municipal securities		5,284				18		5,266		18
U.S. treasuries		39,313		—		224		39,089		224		—
Total	$	1,788,306	$	2	$	5,008	$	1,783,300	$	5,008	$	—


									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	$	—

During the three-months ended March 31, 2022 and 2021, realized gains or losses recognized on the sale of investments were not significant.

The Company’s investments at March 31, 2022 and December 31, 2021 carried investment grade credit ratings.

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


	March 31, 2022				December 31, 2021
	Amortized Cost		Fair Value		Amortized Cost		Fair Value
Less than 1 year:
Commercial paper	$	276,413	$	276,413	$	334,077	$	334,077
Municipal securities		168,958		168,478		666		666
U.S. government agency securities		78,831		78,489		62,687		62,661
Certificates of deposit		37,010		37,010		44,502		44,502
U.S. treasuries		1,161,042		1,157,258		1,308,536		1,307,821
Due 1 - 10 years:
U.S. treasuries		39,313		39,089		87,133		86,943
Municipal securities		5,284		5,266		—		—
U.S. government agency securities		21,455		21,297		12,500		12,476
Total	$	1,788,306	$	1,783,300	$	1,850,101	$	1,849,146

ACQUISTIONS AND DIVESTITURES (Details) - CANarchy $ in Thousands	Feb. 17, 2022 USD ($)
Consideration Transferred
Total	$ 333,604
Cash	333,604
Business Combination Consideration including adjustments transferred	330,400
Identifiable Assets Acquired and Liabilities Assumed
Intangibles - trademarks (non-amortizing)	94,500
Intangibles - customer relationships (amortizing)	54,500
Intangibles - permits (non-amortizing)	6,500
Property and equipment, net	81,285
Inventory	18,900
Right-of -use assets	12,836
Operating lease liabilities	(12,836)
Working capital (excluding inventory)	(4,844)
Other	(770)
Goodwill	80,285
Cash	3,248
Total	$ 333,604

CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED) - USD ($) $ in Thousands	Mar. 31, 2022	Dec. 31, 2021
CURRENT ASSETS:
Cash and cash equivalents	$ 1,014,786	$ 1,326,462
Short-term investments	1,717,648	1,749,727
Accounts receivable, net	1,039,780	896,658
Inventories	821,132	593,357
Prepaid expenses and other current assets	110,327	82,668
Prepaid income taxes	39,993	33,238
Total current assets	4,743,666	4,682,110
INVESTMENTS	65,652	99,419
PROPERTY AND EQUIPMENT, net	407,391	313,753
DEFERRED INCOME TAXES, net	225,221	225,221
GOODWILL	1,411,928	1,331,643
OTHER INTANGIBLE ASSETS, net	1,232,113	1,072,386
OTHER ASSETS	101,488	80,252
Total Assets	8,187,459	7,804,784
CURRENT LIABILITIES:
Accounts payable	438,256	404,263
Accrued liabilities	234,111	210,964
Accrued promotional allowances	270,785	211,461
Deferred revenue	42,540	42,530
Accrued compensation	37,551	65,459
Income taxes payable	21,118	30,399
Total current liabilities	1,044,361	965,076
DEFERRED REVENUE	238,241	243,249
OTHER LIABILITIES	38,185	29,508
COMMITMENTS AND CONTINGENCIES (Note 12)
STOCKHOLDERS' EQUITY:
Common stock - $0.005 par value; 1,250,000 shares authorized; 640,528 shares issued and 529,642 shares outstanding as of March 31, 2022; 640,043 shares issued and 529,323 shares outstanding as of December 31, 2021	3,203	3,200
Additional paid-in capital	4,673,302	4,652,620
Retained earnings	8,103,752	7,809,549
Accumulated other comprehensive loss	(72,145)	(69,165)
Common stock in treasury, at cost; 110,886 shares and 110,720 shares as of March 31, 2022 and December 31, 2021, respectively	(5,841,440)	(5,829,253)
Total stockholders' equity	6,866,672	6,566,951
Total Liabilities and Stockholders' Equity	$ 8,187,459	$ 7,804,784

GOODWILL AND OTHER INTANGIBLE ASSETS - Amortization expense (Details) - USD ($) $ in Thousands	Mar. 31, 2022	Dec. 31, 2021
Future estimated amortization expense related to amortizing intangibles
2022 (excluding the three-months ended March 31, 2022)	$ 6,029
2023	4,745
2024	3,647
2025	3,647
2026	3,646
2027 and thereafter	36,897
Amortizing intangibles, net	$ 58,611	$ 5,645

REVENUE RECOGNITION (Tables)

3 Months Ended

Mar. 31, 2022

REVENUE RECOGNITION

Schedule of disaggregation of revenue by geographical markets


	Three-Months Ended March 31, 2022
							Latin
							America
	U.S. and						and
Net Sales	Canada		EMEA¹		Asia Pacific		Caribbean		Total
Monster Energy® Drinks	$	925,680	$	260,889	$	110,556	$	107,722	$	1,404,847
Strategic Brands		53,051		30,176		6,662		2,704		92,593
Alcohol Brands²		15,207		—		—		—		15,207
Other		5,927		—		—		—		5,927
Total Net Sales	$	999,865	$	291,065	$	117,218	$	110,426	$	1,518,574


	Three-Months Ended March 31, 2021
							Latin
							America
	U.S. and						and
Net Sales	Canada		EMEA¹		Asia Pacific		Caribbean		Total
Monster Energy® Drinks	$	773,504	$	219,300	$	106,747	$	70,729	$	1,170,280
Strategic Brands		37,683		19,909		8,438		1,779		67,809
Alcohol Brands²		—		—		—		—		—
Other		5,727		—		—		—		5,727
Total Net Sales	$	816,914	$	239,209	$	115,185	$	72,508	$	1,243,816

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

²Effectively from February 17, 2022 to March 31, 2022

LEASES - Undiscounted future lease payments for operating and finance leases (Details) - USD ($) $ in Thousands	Mar. 31, 2022	Dec. 31, 2021
Operating Leases
2022 (excluding the three-months ended March 31, 2022)	$ 5,527
2023	6,531
2024	5,323
2025	4,034
2026	3,179
2027 and thereafter	12,674
Total lease payments	37,268
Less imputed interest	(4,157)
Total	33,111	$ 21,379
Finance Leases
2022 (excluding the three-months ended March 31, 2022)	1,030
2023	200
2024	13
2025	8
Total lease payments	1,251
Less imputed interest	(10)
Total	$ 1,241	$ 1,001

EARNINGS PER SHARE (Details) - shares shares in Thousands	3 Months Ended
EARNINGS PER SHARE (Details) - shares shares in Thousands	Mar. 31, 2022	Mar. 31, 2021
Weighted-average shares outstanding:
Basic	529,405	528,195
Dilutive	6,149	6,787
Diluted	535,554	534,982
Options and awards outstanding excluded from the calculations as their effect would have been antidilutive (in shares)	1,600	200

COMMITMENTS AND CONTINGENCIES

3 Months Ended

Mar. 31, 2022

COMMITMENTS AND CONTINGENCIES

COMMITMENTS AND CONTINGENCIES

12. COMMITMENTS AND CONTINGENCIES

The Company had purchase commitments aggregating approximately $384.1 million at March 31, 2022, which represented commitments made by the Company and its subsidiaries to various suppliers of raw materials for the production of its products. These obligations vary in terms, but are generally satisfied within one year.

The Company had contractual obligations aggregating approximately $335.4 million at March 31, 2022, which related primarily to sponsorships and other marketing activities.

The Company has a credit facility with HSBC Bank (China) Company Limited, Shanghai Branch, of $15.0 million. At March 31, 2022, the interest rate on borrowings under the line of credit was 5.5%. As of March 31, 2022, $9.9 million was outstanding on this line of credit.

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 March 31, 2022, no loss contingencies were included in the Company’s condensed consolidated balance sheet.

ACQUISTIONS AND DIVESTITURES

3 Months Ended

Mar. 31, 2022

ACQUISTIONS AND DIVESTITURES

ACQUISTIONS AND DIVESTITURES

2.	ACQUISITIONS AND DIVESTITURES

On February 17, 2022, the Company completed its acquisition of CANarchy Craft Brewery Collective LLC (“CANarchy”), a craft beer and hard seltzer company, for $330.4 million in cash, subject to adjustments (the “CANarchy Transaction”). The CANarchy Transaction allows the Company 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, the Wasatch family of brands including Apricot Hefeweizen, as well as certain other brands (collectively the “CANarchy Brands”) to the Company’s 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.

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

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


	Identifiable
	Assets
	Acquired and
	Liabilities		Consideration
	Assumed		Transferred
Intangibles - trademarks (non-amortizing)	$	94,500	$	—
Intangibles - customer relationships (amortizing)		54,500		—
Intangibles - permits (non-amortizing)		6,500		—
Property and equipment, net		81,285		—
Inventory		18,900		—
Right-of -use assets		12,836		—
Operating lease liabilities		(12,836)		—
Working capital (excluding inventory)		(4,844)		—
Other		(770)		—
Goodwill		80,285		—
Cash		3,248		333,604
Total	$	333,604	$	333,604

The fair value analysis has yet to progress to a stage where there is sufficient information for a definitive measurement of the respective fair values. Accordingly, the respective fair value allocations are preliminary and are based on valuations derived from estimated fair value assumptions used by management. The Company expects to complete its fair value analysis at a level of detail necessary to finalize the underlying fair value allocations as soon as practicable, but no later than twelve months from the closing of the CANarchy Transaction.

The Company determined the preliminary estimated fair values as follows:

●

Trademarks – relief-from-royalty method of the income approach

●

Customer relationships – distributor method of the income approach

●

Permits – with-and-without method of the income approach

●

Property and equipment – cost approach

●

Inventory – comparative sales method and replacement cost method

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

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

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

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

STOCK-BASED COMPENSATION (Tables)

3 Months Ended

Mar. 31, 2022

STOCK-BASED COMPENSATION

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


	Three-Months Ended March 31,
	2022		2021
Dividend yield	0.0	%	0.0	%
Expected volatility	27.7	%	28.9	%
Risk-free interest rate	2.1	%	0.8	%
Expected term	6.0 years		5.8 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, 2022	13,860	$	48.19	5.1	$	663,148
Granted 01/01/22 - 03/31/22	2,489	$	73.96
Exercised	(114)	$	39.57
Cancelled or forfeited	(17)	$	65.92
Outstanding at March 31, 2022	16,218	$	52.19	5.6	$	459,540
Vested and expected to vest in the future at March 31, 2022	15,723	$	51.52	5.5	$	455,553
Exercisable at March 31, 2022	10,862	$	42.96	4.1	$	402,706

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, 2022	910	$	69.02
Granted 01/01/22 - 03/31/22¹	484	$	71.88
Vested	(371)	$	64.15
Forfeited/cancelled	(2)	$	59.67
Non-vested at March 31, 2022	1,021	$	72.17

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 depending on the achievement of pre-established performance goals.

LEASES

3 Months Ended

Mar. 31, 2022

LEASES

LEASES

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

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

Right-of-use (“ROU”) assets and lease liabilities are recognized at the lease commencement date based on the present value of lease payments over the lease term. As the Company’s leases generally do not provide an implicit rate, the Company uses its incremental borrowing rate based on the estimated rate of interest for collateralized borrowing over a similar term of the lease payments at the commencement date. ROU assets also include any lease payments made and exclude lease incentives. Lease terms include options to extend or terminate the lease when it is reasonably certain that the Company will exercise that option.

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

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

The components of lease cost were comprised of the following:


	Three-Months		Three-Months
	Ended March 31,		Ended March 31,
	2022		2021
Operating lease cost	$	1,694	$	1,131

Short-term lease cost		929		953

Variable lease cost		183		162

Finance leases:
Amortization of ROU assets		127		134
Interest on lease liabilities		3		4
Finance lease cost		130		138

Total lease cost	$	2,936	$	2,384

Supplemental cash flow information for the following periods:


	Three-Months		Three-Months
	Ended March 31,		Ended March 31,
	2022		2021
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash outflows from operating leases	$	1,652	$	991
Operating cash outflows from finance leases		3		4
Financing cash outflows from finance leases		592		689

ROU assets obtained in exchange for lease obligations:
Finance leases		832		1,495
Operating leases		13,197		36

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


	March 31, 2022
	Real Estate		Equipment		Total		Balance Sheet Location
Operating leases	$	33,644	$	558	$	34,202	Other Assets
Finance leases		—		2,035		2,035	Property and Equipment, net


	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

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


	March 31, 2022
	Operating Leases		Finance Leases
Accrued liabilities	$	6,398	$	1,205
Other liabilities		26,713		36
Total	$	33,111	$	1,241


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

The weighted-average remaining lease terms and weighted-average discount rates for operating and finance leases at March 31, 2022 and December 31, 2021 were as follows:


	March 31, 2022
	Operating Leases		Finance Leases
Weighted-average remaining lease term (years)	7.1		0.9
Weighted-average discount rate	3.2	%	1.6	%


	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	%

The following table reconciles the undiscounted future lease payments for operating and finance leases to the operating and finance leases recorded in the Company’s condensed consolidated balance sheet at March 31, 2022:


	Undiscounted Future Lease Payments
	Operating Leases		Finance Leases
2022 (excluding the three-months ended March 31, 2022)	$	5,527	$	1,030
2023		6,531		200
2024		5,323		13
2025		4,034		8
2026		3,179		—
2027 and thereafter		12,674		—
Total lease payments		37,268		1,251
Less imputed interest		(4,157)		(10)
Total	$	33,111	$	1,241

As of March 31, 2022, the Company did not have any significant additional operating or finance leases that have not yet commenced.

PROPERTY AND EQUIPMENT, NET (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2022	Mar. 31, 2021	Dec. 31, 2021
Property and equipment, net
Property and equipment, gross	$ 643,248		$ 538,538
Less: accumulated depreciation and amortization	(235,857)		(224,785)
Property and equipment, net	407,391		313,753
Total depreciation and amortization expense	13,100	$ 11,700
Land
Property and equipment, net
Property and equipment, gross	86,522		85,455
Leasehold improvements
Property and equipment, net
Property and equipment, gross	31,272		11,845
Furniture and fixtures
Property and equipment, net
Property and equipment, gross	9,185		8,274
Office and computer equipment
Property and equipment, net
Property and equipment, gross	23,026		21,601
Computer software
Property and equipment, net
Property and equipment, gross	8,085		8,383
Equipment
Property and equipment, net
Property and equipment, gross	251,184		190,333
Buildings
Property and equipment, net
Property and equipment, gross	186,371		167,243
Vehicles
Property and equipment, net
Property and equipment, gross	$ 47,603		$ 45,404

LEASES - Lease Terms (Details)	3 Months Ended
LEASES - Lease Terms (Details)	Mar. 31, 2022
LEASES
Operating leases, options to extend	true
Finance leases, options to extend	true
Operating leases, options to terminate	true
Finance leases, options to terminate	true
Minimum
LEASES
Operating leases, lease term (in years)	1 year
Finance leases, lease term (in years)	1 year
Maximum
LEASES
Operating leases, lease term (in years)	12 years
Finance leases, lease term (in years)	12 years
Operating leases, renewal lease term (in years)	5 years
Finance leases, renewal lease term (in years)	5 years
Operating leases, termination period (in years)	1 year
Finance leases, termination period (in years)	1 year

STOCK-BASED COMPENSATION

3 Months Ended

Mar. 31, 2022

STOCK-BASED COMPENSATION

STOCK-BASED COMPENSATION

15. STOCK-BASED COMPENSATION

The Company has two stock-based compensation plans under which shares were available for grant at March 31, 2022: (i) the Monster Beverage Corporation 2020 Omnibus Incentive Plan, including 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 as Amended and Restated on February 23, 2022, including the Monster Beverage Corporation Deferred Compensation Plan for Non-Employee Directors as a sub-plan thereunder.

The Company recorded $16.3 million and $18.4 million of compensation expense relating to outstanding options, restricted stock units, performance share units and other share-based awards during the three-months ended March 31, 2022 and 2021, respectively.

The tax benefit for tax deductions from non-qualified stock option exercises, disqualifying dispositions of incentive stock options and vesting of restricted stock units and performance share units for the three-months ended March 31, 2022 and 2021 was $0.4 million and $1.4 million, respectively.

Stock Options

Under the Company’s stock-based compensation plans, all stock options granted as of March 31, 2022 were granted at prices based on the fair value of the Company’s common stock on the date of grant. The Company records compensation expense for stock options based on the estimated fair value of the options on the date of grant using the Black-Scholes-Merton option pricing formula with the assumptions included in the table below. The Company uses historical data to determine the exercise behavior, volatility and forfeiture rate of the options.

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


	Three-Months Ended March 31,
	2022		2021
Dividend yield	0.0	%	0.0	%
Expected volatility	27.7	%	28.9	%
Risk-free interest rate	2.1	%	0.8	%
Expected term	6.0 years		5.8 years

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

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

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

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


				Weighted-
		Weighted-		Average
		Average		Remaining
	Number of	Exercise		Contractual	Aggregate
	Shares	Price Per		Term (in	Intrinsic
Options	(in thousands)	Share		years)	Value
Outstanding at January 1, 2022	13,860	$	48.19	5.1	$	663,148
Granted 01/01/22 - 03/31/22	2,489	$	73.96
Exercised	(114)	$	39.57
Cancelled or forfeited	(17)	$	65.92
Outstanding at March 31, 2022	16,218	$	52.19	5.6	$	459,540
Vested and expected to vest in the future at March 31, 2022	15,723	$	51.52	5.5	$	455,553
Exercisable at March 31, 2022	10,862	$	42.96	4.1	$	402,706

The weighted-average grant-date fair value of options granted during the three-months ended March 31, 2022 and 2021 was $23.21 per share and $25.78 per share, respectively.

The total intrinsic value of options exercised during the three-months ended March 31, 2022 and 2021 was $4.9 million and $7.2 million, respectively.

Cash received from option exercises under all plans for the three-months ended March 31, 2022 and 2021 was $4.5 million and $6.8 million, respectively.

At March 31, 2022, there was $95.4 million of total unrecognized compensation expense related to non-vested options granted to employees under the Company’s stock-based compensation plans. That cost is expected to be recognized over a weighted-average period of 3.4 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, 2022	910	$	69.02
Granted 01/01/22 - 03/31/22¹	484	$	71.88
Vested	(371)	$	64.15
Forfeited/cancelled	(2)	$	59.67
Non-vested at March 31, 2022	1,021	$	72.17

The weighted-average grant-date fair value of restricted stock units and/or performance share units granted during the three-months ended March 31, 2022 and 2021 was $73.45 and $88.96 per share, respectively.

As of March 31, 2022, 0.9 million of restricted stock units and performance share units are expected to vest over their respective terms.

At March 31, 2022, total unrecognized compensation expense relating to non-vested restricted stock units and performance share units was $56.7 million, which is expected to be recognized over a weighted-average period of 2.4 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 March 31, 2022, other share-based awards outstanding included grants that vest over three years payable in the first quarters of 2023, 2024 and 2025.

At March 31, 2022, there was $0.5 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 0.8 years.

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2022	Mar. 31, 2021
CASH FLOWS FROM OPERATING ACTIVITIES:
Net income	$ 294,203	$ 315,194
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization	14,599	12,825
Non-cash lease expense	1,481	952
Gain on disposal of property and equipment	(6)	(88)
Stock-based compensation	16,332	18,362
Effect on cash of changes in operating assets and liabilities net of acquisition:
Accounts receivable	(134,433)	(147,452)
Inventories	(208,673)	(39,546)
Prepaid expenses and other assets	(29,621)	(18,487)
Prepaid income taxes	(5,885)	(7,076)
Accounts payable	18,329	36,859
Accrued liabilities	20,603	32,441
Accrued promotional allowances	61,171	13,965
Accrued compensation	(32,122)	(24,443)
Income taxes payable	(9,818)	(13,287)
Other liabilities	(596)	504
Deferred revenue	(5,915)	(5,250)
Net cash (used in) provided by operating activities	(351)	175,473
CASH FLOWS FROM INVESTING ACTIVITIES:
Sales of available-for-sale investments	504,808	325,751
Purchases of available-for-sale investments	(441,925)	(440,570)
Acquisition of CANarchy, net of cash	(330,356)
Purchases of property and equipment	(21,511)	(8,400)
Proceeds from sale of property and equipment	14	231
Additions to intangibles	(8,419)	(7,239)
Increase in other assets	(6,241)	(18,856)
Net cash used in investing activities	(303,630)	(149,083)
CASH FLOWS FROM FINANCING ACTIVITIES:
Borrowings on debt	3,454	957
Issuance of common stock	4,510	6,761
Purchases of common stock held in treasury	(12,187)	(13,419)
Net cash used in financing activities	(4,223)	(5,701)
Effect of exchange rate changes on cash and cash equivalents	(3,472)	(22,223)
NET DECREASE IN CASH AND CASH EQUIVALENTS	(311,676)	(1,534)
CASH AND CASH EQUIVALENTS, beginning of period	1,326,462	1,180,413
CASH AND CASH EQUIVALENTS, end of period	1,014,786	1,178,879
Cash paid during the period for:
Interest	91	13
Income taxes	$ 112,863	$ 121,866

FAIR VALUE OF CERTAIN FINANCIAL ASSETS AND LIABILITIES

3 Months Ended

Mar. 31, 2022

FAIR VALUE OF CERTAIN FINANCIAL ASSETS AND LIABILITIES

FAIR VALUE OF CERTAIN FINANCIAL ASSETS AND LIABILITIES

6.	FAIR VALUE OF CERTAIN FINANCIAL ASSETS AND LIABILITIES

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

●

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

●

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

●

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

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

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


March 31, 2022	Level 1		Level 2		Level 3		Total
Cash	$	748,324	$	—	$	—	$	748,324
Money market funds		138,161		—		—		138,161
Certificates of deposit		—		38,411		—		38,411
Commercial paper		—		290,410		—		290,410
Municipal securities		—		202,667		—		202,667
U.S. government agency securities		—		99,786		—		99,786
U.S. treasuries		—		1,280,327		—		1,280,327
Foreign currency derivatives		—		(4,483)		—		(4,483)
Total	$	886,485	$	1,907,118	$	—	$	2,793,603

Amounts included in:
Cash and cash equivalents	$	886,485	$	128,301	$	—	$	1,014,786
Short-term investments		—		1,717,648		—		1,717,648
Accounts receivable, net		—		239		—		239
Investments		—		65,652		—		65,652
Accrued liabilities		—		(4,722)		—		(4,722)
Total	$	886,485	$	1,907,118	$	—	$	2,793,603


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

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 three-months ended March 31, 2022, or during the year-ended December 31, 2021, 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

LEASES - ROU assets for operating and finance leases (Details) - USD ($) $ in Thousands	Mar. 31, 2022	Dec. 31, 2021
ROU assets for operating and finance leases
Operating leases	$ 34,202	$ 23,157
Finance leases	2,035	2,646
Real Estate
ROU assets for operating and finance leases
Operating leases	33,644	22,518
Equipment Lease
ROU assets for operating and finance leases
Operating leases	558	639
Finance leases	$ 2,035	$ 2,646

INVESTMENTS (Details) - USD ($) $ in Thousands	Mar. 31, 2022	Dec. 31, 2021
Available-for-sale
Amortized Cost	$ 1,788,306	$ 1,850,101
Gross Unrealized Holding Gains	2	2
Gross Unrealized Holding Losses	5,008	957
Fair Value	1,783,300	1,849,146
Continuous Unrealized Loss Position less than 12 Months	5,008	957
Short-term \| Commercial paper
Available-for-sale
Amortized Cost	276,413	334,077
Fair Value	276,413	334,077
Short-term \| Certificates of deposit
Available-for-sale
Amortized Cost	37,010	44,502
Fair Value	37,010	44,502
Short-term \| Municipal securities
Available-for-sale
Amortized Cost	168,958	666
Gross Unrealized Holding Gains	2
Gross Unrealized Holding Losses	482
Fair Value	168,478	666
Continuous Unrealized Loss Position less than 12 Months	482
Short-term \| U.S. government agency securities
Available-for-sale
Amortized Cost	78,831	62,687
Gross Unrealized Holding Losses	342	26
Fair Value	78,489	62,661
Continuous Unrealized Loss Position less than 12 Months	342	26
Short-term \| U.S. treasuries
Available-for-sale
Amortized Cost	1,161,042	1,308,536
Gross Unrealized Holding Gains		2
Gross Unrealized Holding Losses	3,784	717
Fair Value	1,157,258	1,307,821
Continuous Unrealized Loss Position less than 12 Months	3,784	717
Long-term \| Municipal securities
Available-for-sale
Amortized Cost	5,284
Gross Unrealized Holding Losses	18
Fair Value	5,266
Continuous Unrealized Loss Position less than 12 Months	18
Long-term \| U.S. government agency securities
Available-for-sale
Amortized Cost	21,455	12,500
Gross Unrealized Holding Losses	158	24
Fair Value	21,297	12,476
Continuous Unrealized Loss Position less than 12 Months	158	24
Long-term \| U.S. treasuries
Available-for-sale
Amortized Cost	39,313	87,133
Gross Unrealized Holding Losses	224	190
Fair Value	39,089	86,943
Continuous Unrealized Loss Position less than 12 Months	$ 224	$ 190

STOCK-BASED COMPENSATION - Plans (Details) $ in Millions	3 Months Ended
STOCK-BASED COMPENSATION - Plans (Details) $ in Millions	Mar. 31, 2022 USD ($) plan	Mar. 31, 2021 USD ($)
STOCK-BASED COMPENSATION
Stock-based compensation plans \| plan	2
Compensation expense on share-based plans	$ 16.3	$ 18.4
Excess tax benefit realized for tax deductions from non-qualified stock option exercises and disqualifying dispositions of incentive stock options	$ 0.4	$ 1.4

SEGMENT INFORMATION - Depreciation and Amortization (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2022	Mar. 31, 2021
Segment information
Depreciation and amortization	$ 14,599	$ 12,825
Corporate and Unallocated
Segment information
Depreciation and amortization	2,814	2,413
Monster Energy Drinks \| Operating segment
Segment information
Depreciation and amortization	8,159	9,022
Strategic Brands \| Operating segment
Segment information
Depreciation and amortization	233	264
Alcohol Brands \| Operating segment
Segment information
Depreciation and amortization	2,283
Other \| Operating segment
Segment information
Depreciation and amortization	$ 1,110	$ 1,126

INVENTORIES

3 Months Ended

Mar. 31, 2022

INVENTORIES

INVENTORIES

8.	INVENTORIES

Inventories consist of the following at:


	March 31,		December 31,
	2022		2021
Raw materials	$	455,318	$	349,865
Work in process		1,471		—
Finished goods		364,343		243,492
	$	821,132	$	593,357

ACCUMULATED OTHER COMPREHENSIVE LOSS (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2022	Mar. 31, 2021
Components of accumulated other comprehensive loss:
Balance at the beginning of the period	$ (69,165)	$ (3,034)
Other comprehensive (loss) income before reclassifications	(2,980)	(27,908)
Amounts reclassified from accumulated other comprehensive (loss) income	0
Net current-period other comprehensive (loss) income	(2,980)	(27,908)
Balance at the end of the period	(72,145)	24,874
Currency Translation Losses
Components of accumulated other comprehensive loss:
Balance at the beginning of the period	(68,209)	2,950
Other comprehensive (loss) income before reclassifications	1,079	(27,932)
Amounts reclassified from accumulated other comprehensive (loss) income	0
Net current-period other comprehensive (loss) income	1,079	(27,932)
Balance at the end of the period	(67,130)	(24,982)
Unrealized Losses on Available-for-Sale Securities
Components of accumulated other comprehensive loss:
Balance at the beginning of the period	(956)	84
Other comprehensive (loss) income before reclassifications	(4,059)	24
Amounts reclassified from accumulated other comprehensive (loss) income	0
Net current-period other comprehensive (loss) income	(4,059)	24
Balance at the end of the period	$ (5,015)	$ 108

- 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

- Definition

Amount after tax and reclassification adjustments of other comprehensive income (loss).

+ References

Reference 1: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 220
-SubTopic 10
-Section 45
-Paragraph 1A
-Subparagraph (b)
-URI http://asc.fasb.org/extlink&oid=124509347&loc=SL7669619-108580

Reference 2: http://www.xbrl.org/2009/role/commonPracticeRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 220
-SubTopic 10
-Section 50
-Paragraph 4
-URI http://asc.fasb.org/extlink&oid=124431353&loc=SL124442407-227067

Reference 3: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 505
-SubTopic 10
-Section 50
-Paragraph 2
-URI http://asc.fasb.org/extlink&oid=123467817&loc=d3e21463-112644

Reference 4: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 830
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-Section 45
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-URI http://asc.fasb.org/extlink&oid=118261656&loc=d3e32136-110900

Reference 5: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 220
-SubTopic 10
-Section S99
-Paragraph 2
-Subparagraph (SX 210.5-03(21))
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Reference 6: http://fasb.org/us-gaap/role/ref/legacyRef
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Reference 7: http://www.xbrl.org/2003/role/disclosureRef
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-Name Accounting Standards Codification
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Reference 8: http://www.xbrl.org/2003/role/disclosureRef
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Reference 9: http://www.xbrl.org/2009/role/commonPracticeRef
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Reference 10: http://www.xbrl.org/2003/role/disclosureRef
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Reference 11: http://www.xbrl.org/2003/role/disclosureRef
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-Section S99
-Paragraph 1
-Subparagraph (SX 210.9-04(23))
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Reference 12: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
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-Section S99
-Paragraph 1
-Subparagraph (SX 210.7-04(19))
-URI http://asc.fasb.org/extlink&oid=120400993&loc=SL114874131-224263

+ Details

REVENUE RECOGNITION

3 Months Ended

Mar. 31, 2022

REVENUE RECOGNITION

REVENUE RECOGNITION

3.	REVENUE RECOGNITION

The Company has four 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^TM 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, (iii) Alcohol Brands segment ("Alcohol Brands"), which is primarily comprised of the various craft beers and hard seltzers purchased as part of the CANarchy Transaction on February 17, 2022 and (iv) 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 Alcohol Brands segment primarily generates operating revenues by selling kegged, and canned beer as well as hard seltzers primarily to distributors in the United States.

The majority of the Company’s revenue is recognized when it satisfies a single performance obligation by transferring control of its products to a customer. Control is generally transferred when the Company’s products are either shipped or delivered based on the terms contained within the underlying contracts or agreements. Certain of the Company’s bottlers/distributors may also perform a separate function as a co-packer on the Company’s behalf. In such cases, control of the Company’s products passes to such bottlers/distributors when they notify the Company that they have taken possession or transferred the relevant portion of the Company’s finished goods. The Company’s general payment terms are short-term in duration. The Company does not have significant financing components or payment terms. The Company did not have any material unsatisfied performance obligations as of March 31, 2022 and December 31, 2021.

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

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

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

●

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

●

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

●

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

●

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

●

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

●

discounted or free products;

●

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

●

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

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

Disaggregation of Revenue

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


	Three-Months Ended March 31, 2022
							Latin
							America
	U.S. and						and
Net Sales	Canada		EMEA¹		Asia Pacific		Caribbean		Total
Monster Energy® Drinks	$	925,680	$	260,889	$	110,556	$	107,722	$	1,404,847
Strategic Brands		53,051		30,176		6,662		2,704		92,593
Alcohol Brands²		15,207		—		—		—		15,207
Other		5,927		—		—		—		5,927
Total Net Sales	$	999,865	$	291,065	$	117,218	$	110,426	$	1,518,574


	Three-Months Ended March 31, 2021
							Latin
							America
	U.S. and						and
Net Sales	Canada		EMEA¹		Asia Pacific		Caribbean		Total
Monster Energy® Drinks	$	773,504	$	219,300	$	106,747	$	70,729	$	1,170,280
Strategic Brands		37,683		19,909		8,438		1,779		67,809
Alcohol Brands²		—		—		—		—		—
Other		5,727		—		—		—		5,727
Total Net Sales	$	816,914	$	239,209	$	115,185	$	72,508	$	1,243,816

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

²Effectively from February 17, 2022 to March 31, 2022

Contract Liabilities

Amounts received from certain bottlers/distributors at inception of their distribution contracts or at the inception of certain sales/marketing programs are accounted for as deferred revenue. As of March 31, 2022, the Company had $280.8 million of deferred revenue, which is included in current and long-term deferred revenue in the Company’s condensed consolidated balance sheet. As of December 31, 2021, the Company had $285.8 million of deferred revenue, which is included in current and long-term deferred revenue in the Company’s condensed consolidated balance sheet. During the three-months ended March 31, 2022 and 2021, $10.0 million and $10.4 million, respectively, of deferred revenue was recognized in net sales. See Note 11.

- 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
-Paragraph 10
-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
-Topic 606
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-Subparagraph (b)(2)
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Reference 4: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 606
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-Section 50
-Paragraph 12
-Subparagraph (b)
-URI http://asc.fasb.org/extlink&oid=123351226&loc=SL49130554-203045

Reference 5: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
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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
-Name Accounting Standards Codification
-Topic 606
-SubTopic 10
-Section 50
-Paragraph 12
-Subparagraph (e)
-URI http://asc.fasb.org/extlink&oid=123351226&loc=SL49130554-203045

Reference 7: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 606
-SubTopic 10
-Section 50
-Paragraph 12
-Subparagraph (a)
-URI http://asc.fasb.org/extlink&oid=123351226&loc=SL49130554-203045

Reference 8: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 606
-SubTopic 10
-Section 50
-Paragraph 12
-Subparagraph (d)
-URI http://asc.fasb.org/extlink&oid=123351226&loc=SL49130554-203045

Reference 9: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 606
-SubTopic 10
-Section 50
-Paragraph 15
-URI http://asc.fasb.org/extlink&oid=123351226&loc=SL49130558-203045

Reference 10: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 606
-SubTopic 10
-Section 50
-Paragraph 12
-Subparagraph (c)
-URI http://asc.fasb.org/extlink&oid=123351226&loc=SL49130554-203045

+ Details

SEGMENT INFORMATION - Expenses (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2022	Mar. 31, 2021
Segment information
Operating income (loss)	$ 399,489	$ 414,146
Stock-based compensation expense	16,300	18,400
Corporate and Unallocated
Segment information
Operating income (loss)	(108,443)	(97,606)
Payroll costs	68,100	65,100
Stock-based compensation expense	16,200	18,300
Professional service expenses	26,400	20,400
Other operating expenses	$ 13,900	$ 12,100

LEASES - Supplemental cash flow information (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2022	Mar. 31, 2021
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash outflows from operating leases	$ 1,652	$ 991
Operating cash outflows from finance leases	3	4
Financing cash outflows from finance leases	592	689
ROU assets obtained in exchange for lease obligations:
Finance leases	832	1,495
Operating leases	$ 13,197	$ 36

SEGMENT INFORMATION - Net Revenues (Details) $ in Thousands	3 Months Ended
SEGMENT INFORMATION - Net Revenues (Details) $ in Thousands	Mar. 31, 2022 USD ($) segment	Mar. 31, 2021 USD ($)
Segment information
Number of reportable segments \| segment	4
Number of operating segments \| segment	4
Total Net Sales	$ 1,518,574	$ 1,243,816
Operating income	399,489	414,146
Income before tax	392,189	413,387
Recognition of deferred revenue	10,000	10,400
Corporate and Unallocated
Segment information
Operating income	(108,443)	(97,606)
Income before tax	(115,730)	(98,514)
Monster Energy Drinks
Segment information
Total Net Sales	1,404,847	1,170,280
Monster Energy Drinks \| Operating segment
Segment information
Total Net Sales	1,404,847	1,170,280
Operating income	454,563	464,819
Income before tax	455,134	464,968
Recognition of deferred revenue	10,000	10,400
Strategic Brands
Segment information
Total Net Sales	92,593	67,809
Strategic Brands \| Operating segment
Segment information
Total Net Sales	92,593	67,809
Operating income	57,195	45,140
Income before tax	57,254	45,140
Alcohol Brands
Segment information
Total Net Sales	15,207
Alcohol Brands \| Operating segment
Segment information
Total Net Sales	15,207
Operating income	(4,953)
Income before tax	(5,606)
Other
Segment information
Total Net Sales	5,927	5,727
Other \| Operating segment
Segment information
Total Net Sales	5,927	5,727
Operating income	1,127	1,793
Income before tax	$ 1,137	$ 1,793

REVENUE RECOGNITION - (Details)	3 Months Ended
REVENUE RECOGNITION - (Details)	Mar. 31, 2022 segment
REVENUE RECOGNITION
Number of operating segments	4
Number of reportable segments	4
Distribution agreement, revenue recognition period	20 years

INCOME TAXES

3 Months Ended

Mar. 31, 2022

INCOME TAXES

INCOME TAXES

16. INCOME TAXES

As of March 31, 2022, the Company does not have unrecognized tax benefits. In addition, the Company’s policy is to recognize accrued interest and penalties related to unrecognized tax benefits in the provision for income taxes in the Company’s condensed consolidated financial statements. It is expected that any change in the amount of unrecognized tax benefits within the next 12 months will not be significant.

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

The Company is in various stages of examination with certain states and certain foreign jurisdictions, including the United Kingdom and Ireland. The Company’s 2018 through 2021 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 2021 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

FAIR VALUE OF CERTAIN FINANCIAL ASSETS AND LIABILITIES (Details) - USD ($) $ in Thousands	3 Months Ended	12 Months Ended
	Mar. 31, 2022	Dec. 31, 2021
Fair value of certain financial assets and liabilities
Cash and cash equivalents	$ 1,014,786	$ 1,326,462
Short-term investments	1,717,648	1,749,727
Investments	65,652	99,419
Asset transfers between Level 1 and Level 2 measurements	0	0
Total fair value
Fair value of certain financial assets and liabilities
Cash	748,324	749,089
Foreign currency derivatives	(4,483)	(278)
Assets measured at fair value	2,793,603	3,175,330
Cash and cash equivalents	1,014,786	1,326,462
Short-term investments	1,717,648	1,749,727
Accounts receivable, net	239	654
Investments	65,652	99,419
Accrued liabilities	(4,722)	(932)
Total fair value \| Money market funds
Fair value of certain financial assets and liabilities
Assets measured at fair value	138,161	440,826
Total fair value \| Certificates of deposit
Fair value of certain financial assets and liabilities
Assets measured at fair value	38,411	44,502
Total fair value \| Commercial paper
Fair value of certain financial assets and liabilities
Assets measured at fair value	290,410	335,477
Total fair value \| Municipal securities
Fair value of certain financial assets and liabilities
Assets measured at fair value	202,667	2,428
Total fair value \| U.S. government agency securities
Fair value of certain financial assets and liabilities
Assets measured at fair value	99,786	75,137
Total fair value \| U.S. treasuries
Fair value of certain financial assets and liabilities
Assets measured at fair value	1,280,327	1,528,149
Level 1
Fair value of certain financial assets and liabilities
Cash	748,324	749,089
Assets measured at fair value	886,485	1,189,915
Cash and cash equivalents	886,485	1,189,915
Level 1 \| Money market funds
Fair value of certain financial assets and liabilities
Assets measured at fair value	138,161	440,826
Level 2
Fair value of certain financial assets and liabilities
Foreign currency derivatives	(4,483)	(278)
Assets measured at fair value	1,907,118	1,985,415
Cash and cash equivalents	128,301	136,547
Short-term investments	1,717,648	1,749,727
Accounts receivable, net	239	654
Investments	65,652	99,419
Accrued liabilities	(4,722)	(932)
Level 2 \| Certificates of deposit
Fair value of certain financial assets and liabilities
Assets measured at fair value	38,411	44,502
Level 2 \| Commercial paper
Fair value of certain financial assets and liabilities
Assets measured at fair value	290,410	335,477
Level 2 \| Municipal securities
Fair value of certain financial assets and liabilities
Assets measured at fair value	202,667	2,428
Level 2 \| U.S. government agency securities
Fair value of certain financial assets and liabilities
Assets measured at fair value	99,786	75,137
Level 2 \| U.S. treasuries
Fair value of certain financial assets and liabilities
Assets measured at fair value	$ 1,280,327	$ 1,528,149

TREASURY STOCK (Details) - USD ($) $ in Millions	3 Months Ended
TREASURY STOCK (Details) - USD ($) $ in Millions	Mar. 31, 2022	May 06, 2022	Mar. 13, 2020
Treasury Stock Purchase
Number of shares repurchased of common stock from employees in lieu of cash or withholding taxes due	200,000
Cash payment for repurchase of common stock from employees in lieu of cash or withholding taxes due	$ 12.2
March 2020 Repurchase Plan
Treasury Stock Purchase
Share repurchase program, authorized amount			$ 500.0
Repurchase of common stock (in shares)	0
March 2020 Repurchase Plan \| Subsequent event
Treasury Stock Purchase
Share repurchase program, authorized amount		$ 441.5

DISTRIBUTION AGREEMENTS

3 Months Ended

Mar. 31, 2022

DISTRIBUTION AGREEMENTS

DISTRIBUTION AGREEMENTS

11. DISTRIBUTION AGREEMENTS

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, or at the inception of certain sales/marketing programs are accounted for as deferred revenue and are recognized as revenue ratably over the anticipated life of the respective agreement, generally 20 years or program duration, as the case may be. Revenue recognized was $10.0 million and $10.4 million for the three-months ended March 31, 2022 and 2021, respectively.

ACQUISTIONS AND DIVESTITURES (Tables)

3 Months Ended

Mar. 31, 2022

ACQUISTIONS AND DIVESTITURES

Schedule of Business Acquisitions, by Acquisition


	Identifiable
	Assets
	Acquired and
	Liabilities		Consideration
	Assumed		Transferred
Intangibles - trademarks (non-amortizing)	$	94,500	$	—
Intangibles - customer relationships (amortizing)		54,500		—
Intangibles - permits (non-amortizing)		6,500		—
Property and equipment, net		81,285		—
Inventory		18,900		—
Right-of -use assets		12,836		—
Operating lease liabilities		(12,836)		—
Working capital (excluding inventory)		(4,844)		—
Other		(770)		—
Goodwill		80,285		—
Cash		3,248		333,604
Total	$	333,604	$	333,604

EARNINGS PER SHARE (Tables)

3 Months Ended

Mar. 31, 2022

EARNINGS PER SHARE

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

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


	Three-Months Ended
	March 31,
	2022	2021
Weighted-average shares outstanding:
Basic	529,405	528,195
Dilutive	6,149	6,787
Diluted	535,554	534,982

LEASES - Operating and finance leases liabilities (Details) - USD ($) $ in Thousands	Mar. 31, 2022	Dec. 31, 2021
Lessee, Lease, Description [Line Items]
Operating Leases	$ 33,111	$ 21,379
Finance Leases	1,241	1,001
Accrued liabilities
Lessee, Lease, Description [Line Items]
Operating Leases	6,398	3,990
Finance Leases	1,205	960
Other Liabilities
Lessee, Lease, Description [Line Items]
Operating Leases	26,713	17,389
Finance Leases	$ 36	$ 41

GOODWILL AND OTHER INTANGIBLE ASSETS - Intangible assets (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2022	Mar. 31, 2021	Dec. 31, 2021
Intangible assets
Amortizing intangibles	$ 121,372		$ 66,872
Accumulated amortization	(62,761)		(61,227)
Amortizing intangibles, net	58,611		5,645
Non-amortizing intangibles	1,173,502		1,066,741
Intangibles, net	1,232,113		$ 1,072,386
Amortization expense	$ 1,500	$ 1,100
Minimum
Intangible assets
Useful life of intangible assets	5 years
Maximum
Intangible assets
Useful life of intangible assets	15 years

SEGMENT INFORMATION - Goodwill and other intangible assets (Details) - USD ($) $ in Thousands	Mar. 31, 2022	Dec. 31, 2021
Segment information
Goodwill and other intangible assets	$ 2,644,041	$ 2,404,029
Monster Energy Drinks \| Operating segment
Segment information
Goodwill and other intangible assets	1,425,023	1,420,503
Strategic Brands \| Operating segment
Segment information
Goodwill and other intangible assets	979,268	978,032
Alcohol Brands \| Operating segment
Segment information
Goodwill and other intangible assets	235,353
Other \| Operating segment
Segment information
Goodwill and other intangible assets	$ 4,397	$ 5,494

RELATED PARTY TRANSACTIONS (Details) $ in Thousands	3 Months Ended		12 Months Ended
RELATED PARTY TRANSACTIONS (Details) $ in Thousands	Mar. 31, 2022 USD ($) director	Mar. 31, 2021 USD ($)	Dec. 31, 2021 USD ($)	Dec. 31, 2020 USD ($)	Dec. 31, 2018 USD ($)
Related party transactions
Equity loss	$ 6,866,672	$ 5,459,437	$ 6,566,951	$ 5,160,860
TCCC
Related party transactions
Net sales	31,800	27,100
Purchases from related party	$ 8,500	6,400
Additional commissions and fees			65,000
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	$ 18,400	16,100
TCCC Related parties and TCCC Independent Bottlers \| Operating expense
Related party transactions
Commission expenses	11,000	5,500
TCCC Subsidiaries
Related party transactions
Accounts receivable, net	115,497		94,647
Accounts payable	(37,629)		(35,248)
Accrued promotional allowances	(7,254)		(4,536)
Accrued liabilities	(35,849)		$ (26,616)
TCCC Subsidiaries \| Monster Energy Drinks
Related party transactions
Contract manufacturing expenses	$ 9,200	7,400
Principal owners
Related party transactions
Number of directors \| director	1
Expenses incurred in connection with materials or services provided by a related party	$ 1,100	400
Business Travelling Expenses	80
Director that serves as counsel
Related party transactions
Ownership percentage					50.00%
Partnership contribution	1,300				$ 1,900
Gain (loss) on investment	30
loans receivable from the partnership	$ 6,100	$ 3,400

INVESTMENTS - Maturity Period (Details) - USD ($) $ in Thousands	Mar. 31, 2022	Dec. 31, 2021
Investments
Amortized Cost	$ 1,788,306	$ 1,850,101
Fair Value	1,783,300	1,849,146
Commercial paper \| Less than 1 year
Investments
Amortized Cost	276,413	334,077
Fair Value	276,413	334,077
Municipal securities \| Less than 1 year
Investments
Amortized Cost	168,958	666
Fair Value	168,478	666
Municipal securities \| Due 1 - 10 years
Investments
Amortized Cost	5,284
Fair Value	5,266
U.S. government agency securities \| Less than 1 year
Investments
Amortized Cost	78,831	62,687
Fair Value	78,489	62,661
U.S. government agency securities \| Due 1 - 10 years
Investments
Amortized Cost	21,455	12,500
Fair Value	21,297	12,476
Certificates of deposit \| Less than 1 year
Investments
Amortized Cost	37,010	44,502
Fair Value	37,010	44,502
U.S. treasuries \| Less than 1 year
Investments
Amortized Cost	1,161,042	1,308,536
Fair Value	1,157,258	1,307,821
U.S. treasuries \| Due 1 - 10 years
Investments
Amortized Cost	39,313	87,133
Fair Value	$ 39,089	$ 86,943

BASIS OF PRESENTATION

3 Months Ended

Mar. 31, 2022

BASIS OF PRESENTATION

BASIS OF PRESENTATION

1.	BASIS OF PRESENTATION

Reference is made to the Notes to Consolidated Financial Statements, in Monster Beverage Corporation and Subsidiaries (the “Company”) Annual Report on Form 10-K for the year ended December 31, 2021 for a summary of significant accounting policies utilized by the Company and its consolidated subsidiaries and other disclosures, which should be read in conjunction with this Quarterly Report on Form 10-Q (“Form 10-Q”).

The Company’s condensed consolidated financial statements included in this Form 10-Q have been prepared in accordance with accounting principles generally accepted in the United States of America (“GAAP”) and Securities and Exchange Commission (“SEC”) rules and regulations applicable to interim financial reporting. They do not include all the information and footnote disclosures normally included in annual financial statements prepared in accordance with GAAP. The information set forth in these interim condensed consolidated financial statements for the three-months ended March 31, 2022 and 2021, respectively, is unaudited and reflects all adjustments, which include only normal recurring adjustments and which in the opinion of management are necessary to make the interim condensed consolidated financial statements not misleading. Results of operations for periods covered by this report may not necessarily be indicative of results of operations for the full year.

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

Recent Accounting Pronouncements

There have been no material changes in recently issued or adopted accounting pronouncements from those disclosed in our Annual Report on Form 10-K for the fiscal year ended December 31, 2021.

CONDENSED CONSOLIDATED STATEMENTS OF INCOME - USD ($) shares in Thousands, $ in Thousands	3 Months Ended
	Mar. 31, 2022	Mar. 31, 2021
CONDENSED CONSOLIDATED STATEMENTS OF INCOME
NET SALES	$ 1,518,574	$ 1,243,816
COST OF SALES	741,907	528,881
GROSS PROFIT	776,667	714,935
OPERATING EXPENSES	377,178	300,789
OPERATING INCOME	399,489	414,146
INTEREST and OTHER EXPENSE, net	7,300	759
INCOME BEFORE PROVISION FOR INCOME TAXES	392,189	413,387
PROVISION FOR INCOME TAXES	97,986	98,193
NET INCOME	$ 294,203	$ 315,194
NET INCOME PER COMMON SHARE:
Basic	$ 0.56	$ 0.60
Diluted	$ 0.55	$ 0.59
WEIGHTED AVERAGE NUMBER OF SHARES OF COMMON STOCK AND COMMON STOCK EQUIVALENTS:
Basic	529,405	528,195
Diluted	535,554	534,982

ACCUMULATED OTHER COMPREHENSIVE LOSS

3 Months Ended

Mar. 31, 2022

ACCUMULATED OTHER COMPREHENSIVE LOSS

ACCUMULATED OTHER COMPREHENSIVE LOSS

13. ACCUMULATED OTHER COMPREHENSIVE LOSS

Changes in accumulated other comprehensive loss by component, after tax, for the three-months ended March 31, 2022 and 2021 are as follows:


			Unrealized
	Currency		Losses on
	Translation		Available-for-
	Losses		Sale Securities		Total
Balance at December 31, 2021	$	(68,209)	$	(956)	$	(69,165)
Other comprehensive (loss) income before reclassifications		1,079		(4,059)		(2,980)
Amounts reclassified from accumulated other comprehensive (loss) income		—		—		—
Net current-period other comprehensive (loss) income		1,079		(4,059)		(2,980)
Balance at March 31, 2022	$	(67,130)	$	(5,015)	$	(72,145)


			Unrealized
	Currency		Gains on
	Translation		Available-for-
	Losses		Sale Securities		Total
Balance at December 31, 2020	$	2,950	$	84	$	3,034
Other comprehensive (loss) income before reclassifications		(27,932)		24		(27,908)
Amounts reclassified from accumulated other comprehensive (loss) income		—		—		—
Net current-period other comprehensive (loss) income		(27,932)		24		(27,908)
Balance at March 31, 2021	$	(24,982)	$	108	$	(24,874)

INVESTMENTS (Tables)

3 Months Ended

Mar. 31, 2022

INVESTMENTS

Summary of investments in available-for-sale


									Continuous		Continuous
			Gross		Gross				Unrealized		Unrealized
			Unrealized		Unrealized				Loss Position		Loss Position
	Amortized		Holding		Holding		Fair		less than 12		greater than 12
March 31, 2022	Cost		Gains		Losses		Value		Months		Months
Available-for-sale
Short-term:
Commercial paper	$	276,413	$	—	$	—	$	276,413	$	—	$	—
Certificates of deposit		37,010		—		—		37,010		—		—
Municipal securities		168,958		2		482		168,478		482
U.S. government agency securities		78,831		—		342		78,489		342		—
U.S. treasuries		1,161,042		—		3,784		1,157,258		3,784		—
Long-term:
U.S. government agency securities		21,455		—		158		21,297		158		—
Municipal securities		5,284				18		5,266		18
U.S. treasuries		39,313		—		224		39,089		224		—
Total	$	1,788,306	$	2	$	5,008	$	1,783,300	$	5,008	$	—


									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	$	—

Summary of the underlying contractual maturities of investments


	March 31, 2022				December 31, 2021
	Amortized Cost		Fair Value		Amortized Cost		Fair Value
Less than 1 year:
Commercial paper	$	276,413	$	276,413	$	334,077	$	334,077
Municipal securities		168,958		168,478		666		666
U.S. government agency securities		78,831		78,489		62,687		62,661
Certificates of deposit		37,010		37,010		44,502		44,502
U.S. treasuries		1,161,042		1,157,258		1,308,536		1,307,821
Due 1 - 10 years:
U.S. treasuries		39,313		39,089		87,133		86,943
Municipal securities		5,284		5,266		—		—
U.S. government agency securities		21,455		21,297		12,500		12,476
Total	$	1,788,306	$	1,783,300	$	1,850,101	$	1,849,146

PROPERTY AND EQUIPMENT, NET (Tables)

3 Months Ended

Mar. 31, 2022

PROPERTY AND EQUIPMENT, NET

Schedule of property and equipment


	March 31,		December 31,
	2022		2021
Land	$	86,522	$	85,455
Leasehold improvements		31,272		11,845
Furniture and fixtures		9,185		8,274
Office and computer equipment		23,026		21,601
Computer software		8,085		8,383
Equipment		251,184		190,333
Buildings		186,371		167,243
Vehicles		47,603		45,404
		643,248		538,538
Less: accumulated depreciation and amortization		(235,857)		(224,785)
	$	407,391	$	313,753

SUBSEQUENT EVENTS (Details) - Subsequent event - USD ($) $ in Millions	1 Months Ended
	Apr. 30, 2022	May 05, 2022
Subsequent Event [Line Items]
Amount awarded to the company	$ 175.0
Percentage of royalty awarded by the court on sales	5.00%
Purchase of Real property, leases and equipment		$ 62.5

SEGMENT INFORMATION (Tables)

3 Months Ended

Mar. 31, 2022

SEGMENT INFORMATION

Schedule of net revenues and other financial information by segment


	Three-Months Ended
	March 31,
	2022		2021
Net sales:
Monster Energy® Drinks¹	$	1,404,847	$	1,170,280
Strategic Brands		92,593		67,809
Alcohol Brands²		15,207		—
Other		5,927		5,727
Corporate and unallocated		—		—
	$	1,518,574	$	1,243,816


	Three-Months Ended
	March 31,
	2022		2021
Operating Income:
Monster Energy® Drinks¹	$	454,563	$	464,819
Strategic Brands		57,195		45,140
Alcohol Brands²		(4,953)		—
Other		1,127		1,793
Corporate and unallocated		(108,443)		(97,606)
	$	399,489	$	414,146


	Three-Months Ended
	March 31,
	2022		2021
Income before tax:
Monster Energy® Drinks¹	$	455,134	$	464,968
Strategic Brands		57,254		45,140
Alcohol Brands²		(5,606)		—
Other		1,137		1,793
Corporate and unallocated		(115,730)		(98,514)
	$	392,189	$	413,387

(1)

Includes $10.0 million and $10.4 million for the three-months ended March 31, 2022 and 2021, respectively, related to the recognition of deferred revenue.

(2)

Effectively from February 17, 2022 to March 31, 2022.


	Three-Months Ended
	March 31,
	2022		2021
Depreciation and amortization:
Monster Energy® Drinks	$	8,159	$	9,022
Strategic Brands		233		264
Alcohol Brands		2,283		—
Other		1,110		1,126
Corporate and unallocated		2,814		2,413
	$	14,599	$	12,825

Schedule of goodwill and other intangible assets for the reportable segments


	March 31,		December 31,
	2022		2021
Goodwill and other intangible assets:
Monster Energy® Drinks	$	1,425,023	$	1,420,503
Strategic Brands		979,268		978,032
Alcohol Brands		235,353		—
Other		4,397		5,494
Corporate and unallocated		—		—
	$	2,644,041	$	2,404,029

STOCK-BASED COMPENSATION - Equity Awards (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands	3 Months Ended
	Mar. 31, 2022	Mar. 31, 2021
STOCK-BASED COMPENSATION
Total intrinsic value of options exercised	$ 4,900	$ 7,200
Stock units expected to vest (in shares)	15,723
Total employee and non-employee share-based compensation expense included in income, before income tax	$ 16,332	$ 18,362
Stock options
STOCK-BASED COMPENSATION
Weighted-average grant-date fair value of options granted (in dollars per share)	$ 23.21	$ 25.78
Cash received from option exercises	$ 4,500	$ 6,800
Total unrecognized compensation expense related to non-vested shares granted to employees	$ 95,400
Cost expected to be recognized over a weighted-average period	3 years 4 months 24 days
Restricted stock units
Weighted Average Grant-Date Fair Value
Granted (in dollars per share)	$ 73.45	$ 88.96
Restricted Stock Units and Performance Share Units
STOCK-BASED COMPENSATION
Total unrecognized compensation expense related to non-vested shares granted to employees	$ 56,700
Cost expected to be recognized over a weighted-average period	2 years 4 months 24 days
Stock units expected to vest (in shares)	900
Number of Shares
Non-vested at the beginning of the period (in shares)	910
Vested (in shares)	(371)
Forfeited/cancelled (in shares)	(2)
Non-vested at the end of the period (in shares)	1,021
Weighted Average Grant-Date Fair Value
Non-vested at the beginning of the period (in dollars per share)	$ 69.02
Vested (in dollars per share)	64.15
Forfeited/cancelled (in dollars per share)	59.67
Non-vested at the end of the period (in dollars per share)	$ 72.17
Restricted Stock Units and Performance Share Units \| Granted 01/01/22 - 03/31/22
Number of Shares
Granted (in shares)	484
Weighted Average Grant-Date Fair Value
Granted (in dollars per share)	$ 71.88
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%
Other share-based awards
STOCK-BASED COMPENSATION
Total unrecognized compensation expense related to non-vested shares granted to employees	$ 500
Cost expected to be recognized over a weighted-average period	9 months 18 days

LEASES - Weighted-average remaining lease term and weighted-average discount rate (Details)	Mar. 31, 2022	Dec. 31, 2021
LEASES
Weighted-average remaining lease term (years), Operating Leases	7 years 1 month 6 days	8 years 1 month 6 days
Weighted-average remaining lease term (years), Finance Leases	10 months 24 days	8 months 12 days
Weighted-average discount rate, Operating Leases	3.20%	3.50%
Weighted-average discount rate, Finance Leases	1.60%	1.30%

COMMITMENTS AND CONTINGENCIES - Purchase Commitments (Details) $ in Millions	3 Months Ended
	Mar. 31, 2022 USD ($)
Purchase Commitments
Aggregate contractual obligations	$ 335.4
Line of credit
Purchase Commitments
Maximum borrowing capacity	$ 15.0
Interest rate (as a percent)	5.50%
Amount outstanding	$ 9.9
Raw material items
Purchase Commitments
Purchase commitments	$ 384.1
Obligation term ( in years)	1 year

GOODWILL AND OTHER INTANGIBLE ASSETS (Tables)

3 Months Ended

Mar. 31, 2022

GOODWILL AND OTHER INTANGIBLE ASSETS

Schedule of goodwill


	Monster
	Energy®		Strategic		Alcohol
	Drinks		Brands		Brands		Other		Total
Balance at December 31, 2021	$	693,644	$	637,999	$	—	$	—	$	1,331,643
Acquisitions		—		—		80,285		—		80,285
Balance at March 31, 2022	$	693,644	$	637,999	$	80,285	$	—	$	1,411,928


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

Schedule of intangible assets


	March 31,		December 31,
	2022		2021
Amortizing intangibles	$	121,372	$	66,872
Accumulated amortization		(62,761)		(61,227)
		58,611		5,645
Non-amortizing intangibles		1,173,502		1,066,741
	$	1,232,113	$	1,072,386

Schedule of future estimated amortization expense related to amortizing intangibles


2022 (excluding the three-months ended March 31, 2022)	$	6,029
2023		4,745
2024		3,647
2025		3,647
2026		3,646
2027 and thereafter		36,897
	$	58,611

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS - SUPPLEMENTAL DISCLOSURE OF NON-CASH ITEMS (Parenthetical) - USD ($) $ in Millions	3 Months Ended
	Mar. 31, 2022	Mar. 31, 2021
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS - NON-CASH SUPPLEMENTAL DATA
Accrued liabilities for intangible assets	$ 11.3	$ 7.8
Accrued Liabilities For Purchases of Equipment	$ 4.0	0.4
Accounts payable on short-term investments		$ 4.4

INVENTORIES (Details) - USD ($) $ in Thousands	Mar. 31, 2022	Dec. 31, 2021
INVENTORIES
Raw materials	$ 455,318	$ 349,865
Work in process	1,471
Finished goods	364,343	243,492
Inventories	$ 821,132	$ 593,357

CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2022	Mar. 31, 2021
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME
Net income, as reported	$ 294,203	$ 315,194
Other comprehensive income (loss):
Change in foreign currency translation adjustment	1,079	(27,932)
Available-for-sale investments:
Change in net unrealized (losses) gains	(4,059)	24
Net change in available-for-sale investments	(4,059)	24
Other comprehensive income (loss)	(2,980)	(27,908)
Comprehensive income	$ 291,223	$ 287,286

- Definition

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

+ References

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+ Details

INVENTORIES (Tables)

3 Months Ended

Mar. 31, 2022

INVENTORIES

Schedule of inventories


	March 31,		December 31,
	2022		2021
Raw materials	$	455,318	$	349,865
Work in process		1,471		—
Finished goods		364,343		243,492
	$	821,132	$	593,357

GOODWILL AND OTHER INTANGIBLE ASSETS - Goodwill (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2022	Mar. 31, 2021
Goodwill
Goodwill, Beginning Balance	$ 1,331,643	$ 1,331,643
Acquisitions	80,285	0
Goodwill, Ending Balance	1,411,928	1,331,643
Monster Energy Drinks
Goodwill
Goodwill, Beginning Balance	693,644	693,644
Acquisitions		0
Goodwill, Ending Balance	693,644	693,644
Strategic Brands
Goodwill
Goodwill, Beginning Balance	637,999	637,999
Acquisitions		0
Goodwill, Ending Balance	637,999	637,999
Alcohol Brands
Goodwill
Acquisitions	80,285	0
Goodwill, Ending Balance	$ 80,285
Other
Goodwill
Acquisitions		$ 0

BASIS OF PRESENTATION (Policies)

3 Months Ended

Mar. 31, 2022

BASIS OF PRESENTATION

Recent Accounting Pronouncements

Recent Accounting Pronouncements

There have been no material changes in recently issued or adopted accounting pronouncements from those disclosed in our Annual Report on Form 10-K for the fiscal year ended December 31, 2021.

SUBSEQUENT EVENTS

3 Months Ended

Mar. 31, 2022

SUBSEQUENT EVENTS

SUBSEQUENT EVENTS

20.SUBSEQUENT EVENTS

In April 2022, Monster Energy Company (“MEC”) and Orange Bang, Inc. (“Orange Bang”) filed a joint motion in the United States District Court for the Central District of California to confirm a final arbitration award against Vital Pharmaceuticals, Inc. (“VPX”) that awarded MEC and Orange Bang $175.0 million and a 5% royalty on all future sales of VPX’s Bang Energy drink and other Bang-branded products as well as certain fees and costs. The arbitration arose from a settlement agreement that VPX entered into in 2010 with Orange Bang, a family-owned beverage business. Pursuant to the terms of that agreement, VPX is only permitted to use the Bang mark on “creatine-based” products or on Bang products that are marketed and sold only in the vitamin and dietary supplement sections of stores. MEC agreed to help Orange Bang defend its rights in exchange for half of any recovery. Upon examining evidence presented at the arbitration, the arbitrator found that Super Creatine is not creatine and that VPX’s Bang products are not creatine based and, therefore, don’t comply with the agreement between Orange Bang and VPX. The motion is scheduled for hearing in the 2022 second quarter. Per ASC No. 450 “Contingencies”, the Company will not recognize the award or royalties until such time as they are realized or realizable. The award and royalties will be realized or realizable when VPX has no remaining potential for appeal or reversal of the decision and all contingencies have been resolved. As of May 6, 2022, the proceedings have yet to progress to a stage where there is sufficient information for an accurate timeline of when the awards will be realized or realizable, if at all.

On May 5, 2022, the Company acquired certain real property, leases and equipment in Norwalk, California for a purchase price of $62.5 million. The Company intends to utilize the property as a manufacturing facility for certain of its products.