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SEGMENT INFORMATION | 9 Months Ended
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Sep. 30, 2012
SEGMENT INFORMATION |
SEGMENT INFORMATION |
15. SEGMENT INFORMATION The Company has two reportable segments, namely Direct Store Delivery (“DSD”), whose principal products comprise energy drinks, and Warehouse (“Warehouse”), whose principal products comprise juice-based and soda beverages. The DSD segment develops, markets and sells products primarily through an exclusive distributor network, whereas the Warehouse segment develops, markets and sells products primarily direct to retailers. Corporate and unallocated amounts that do not relate to DSD or Warehouse segments have been allocated to “Corporate & Unallocated.” The net revenues derived from the DSD and Warehouse segments and other financial information related thereto are as follows:
|  | Three-Months Ended September 30, 2012 |
|  | DSD |  | Warehouse |  | Corporate and Unallocated |  | Total |
Net sales |  | $ | 516,268 |  |  | $ | 25,672 |  |  | $ | - |  |  | $ | 541,940 |  |
Contribution margin |  | 170,096 |  |  | 41 |  |  | - |  |  | 170,137 |  |
Corporate and unallocated expenses |  | - |  |  | - |  |  | (29,452 | ) |  | (29,452 | ) |
Operating income |  |  |  |  |  |  |  |  |  |  | 140,685 |  |
Other income (expense) |  | 147 |  |  | - |  |  | 406 |  |  | 553 |  |
Income before provision for income taxes |  |  |  |  |  |  |  |  |  |  | 141,238 |  |
Depreciation and amortization |  | (3,884 | ) |  | (38 | ) |  | (1,233 | ) |  | (5,155 | ) |
Trademark amortization |  | - |  |  | (11 | ) |  | (1 | ) |  | (12 | ) |
|  | Three-Months Ended September 30, 2011 |
|  | DSD |  | Warehouse |  | Corporate and Unallocated |  | Total |
Net sales |  | $ | 447,113 |  |  | $ | 27,596 |  |  | $ | - |  |  | $ | 474,709 |  |
Contribution margin |  | 153,098 |  |  | 2,482 |  |  | - |  |  | 155,580 |  |
Corporate and unallocated expenses |  | - |  |  | - |  |  | (23,490 | ) |  | (23,490 | ) |
Operating income |  |  |  |  |  |  |  |  |  |  | 132,090 |  |
Other income (expense) |  | (73 | ) |  | - |  |  | (789 | ) |  | (862 | ) |
Income before provision for income taxes |  |  |  |  |  |  |  |  |  |  | 131,228 |  |
Depreciation and amortization |  | (3,358 | ) |  | (25 | ) |  | (1,101 | ) |  | (4,484 | ) |
Trademark amortization |  | - |  |  | (11 | ) |  | (5 | ) |  | (16 | ) |
Revenue is derived from sales to external customers. Operating expenses that pertain to each segment are allocated to the appropriate segment. Corporate and unallocated expenses were $29.5 million for the three-months ended September 30, 2012 and included $19.8 million of payroll costs, of which $7.9 million was attributable to stock-based compensation expense (see Note 12, “Stock-Based Compensation”), $4.5 million attributable to professional service expenses, including accounting and legal costs, $1.2 million of depreciation and $4.0 million of other operating expenses. Corporate and unallocated expenses were $23.5 million for the three-months ended September 30, 2011 and included $14.1 million of payroll costs, of which $4.9 million was attributable to stock-based compensation expense (see Note 12, “Stock-Based Compensation”), $4.5 million attributable to professional service expenses, including accounting and legal costs, and $4.9 million of other operating expenses. Certain items, including operating assets and income taxes, are not allocated to individual segments and therefore are not presented above. Coca-Cola Refreshments USA Inc. (“CCR”), a customer of the DSD segment, accounted for approximately 28% and 29% of the Company’s net sales for the three-months ended September 30, 2012 and 2011, respectively. Net sales to customers outside the United States amounted to $114.5 million and $92.5 million for the three-months ended September 30, 2012 and 2011, respectively. Such sales were approximately 21.1% and 19.5% of net sales for the three-months ended September 30, 2012 and 2011, respectively. The net revenues derived from the DSD and Warehouse segments and other financial information related thereto are as follows:
|  | Nine-Months Ended September 30, 2012
|  | DSD |  |  | Warehouse |  |  | Corporate and Unallocated |  |  | Total |
Net sales |  | $ | 1,515,476 |  |  | $ | 73,709 |  |  | $ | - |  |  | $ | 1,589,185 |
Contribution margin |  | 515,010 |  |  | 3,817 |  |  | - |  |  | 518,827 |
Corporate and unallocated expenses |  | - |  |  | - |  |  | (82,085 | ) |  | (82,085 | )
Operating income |  |  |  |  |  |  |  |  |  |  | 436,742 |
Other income (expense) |  | 414 |  |  | - |  |  | 426 |  |  | 840 |
Income before provision for income taxes |  |  |  |  |  |  |  |  |  |  | 437,582 |
Depreciation and amortization |  | (11,577 | ) |  | (93 | ) |  | (3,558 | ) |  | (15,228 | )
Trademark amortization |  | - |  |  | (33 | ) |  | (3 | ) |  | (36 | )
|  | Nine-Months Ended September 30, 2011
|  | DSD |  |  | Warehouse |  |  | Corporate and Unallocated |  |  | Total |
Net sales |  | $ | 1,218,491 |  |  | $ | 74,782 |  |  | $ | - |  |  | $ | 1,293,273 |
Contribution margin |  | 413,629 |  |  | 3,545 |  |  | - |  |  | 417,174 |
Corporate and unallocated expenses |  | - |  |  | - |  |  | (64,148 | ) |  | (64,148 | )
Operating income |  |  |  |  |  |  |  |  |  |  | 353,026 |
Other income (expense) |  | (81 | ) |  | - |  |  | (205 | ) |  | (286 | )
Income before provision for income taxes |  |  |  |  |  |  |  |  |  |  | 352,740 |
Depreciation and amortization |  | (8,975 | ) |  | (61 | ) |  | (3,116 | ) |  | (12,152 | )
Trademark amortization |  | - |  |  | (33 | ) |  | (6 | ) |  | (39 | )
Revenue is derived from sales to external customers. Operating expenses that pertain to each segment are allocated to the appropriate segment. Corporate and unallocated expenses were $82.1 million for the nine-months ended September 30, 2012 and included $55.4 million of payroll costs, of which $21.6 million was attributable to stock-based compensation expense (see Note 12, “Stock-Based Compensation”), $11.6 million attributable to professional service expenses, including accounting and legal costs, $3.6 million of depreciation and $11.5 million of other operating expenses. Corporate and unallocated expenses were $64.1 million for the nine-months ended September 30, 2011 and included $39.1 million of payroll costs, of which $12.8 million was attributable to stock-based compensation expense (see Note 12, “Stock-Based Compensation”), $13.1 million attributable to professional service expenses, including accounting and legal costs, and $11.9 million of other operating expenses. Certain items, including operating assets and income taxes, are not allocated to individual segments and therefore are not presented above. CCR, a customer of the DSD segment, accounted for approximately 29% of the Company’s net sales for both the nine-months ended September 30, 2012 and 2011. Net sales to customers outside the United States amounted to $318.0 million and $226.0 million for the nine-months ended September 30, 2012 and 2011, respectively. Such sales were approximately 20.0% and 17.5% of net sales for the nine-months ended September 30, 2012 and 2011, respectively. The Company’s net sales by product line were as follows:
|  | Three-Months Ended |  | Nine-Months Ended
|  | September 30, |  | September 30,
Product Line |  | 2012 |  |  | 2011 |  |  | 2012 |  |  | 2011 |
Energy drinks |  | $ | 498,563 |  |  | $ | 434,038 |  |  | $ | 1,468,036 |  |  | $ | 1,186,739 |
Non-carbonated (primarily juice based beverages and Peace Tea® iced teas) |  | 32,453 |  |  | 27,404 |  |  | 86,737 |  |  | 71,882 |
Carbonated (primarily soda beverages) |  | 8,018 |  |  | 10,339 |  |  | 24,445 |  |  | 26,225 |
Other |  | 2,906 |  |  | 2,928 |  |  | 9,967 |  |  | 8,427 |
|  | $ | 541,940 |  |  | $ | 474,709 |  |  | $ | 1,589,185 |  |  | $ | 1,293,273 |

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- Definition The entire disclosure for reporting segments including data and tables. Reportable segments include those that meet any of the following quantitative thresholds a) it's reported revenue, including sales to external customers and intersegment sales or transfers is 10 percent or more of the combined revenue, internal and external, of all operating segments b) the absolute amount of its reported profit or loss is 10 percent or more of the greater, in absolute amount of 1) the combined reported profit of all operating segments that did not report a loss or 2) the combined reported loss of all operating segments that did report a loss c) its assets are 10 percent or more of the combined assets of all operating segments. + References Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 12 -URI http://asc.fasb.org/extlink&oid=6534315&loc=d3e8595-108599 Reference 2: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 10 -URI http://asc.fasb.org/extlink&oid=6534315&loc=d3e8538-108599 Reference 3: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 33 -URI http://asc.fasb.org/extlink&oid=6534315&loc=d3e8971-108599 Reference 4: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 34 -URI http://asc.fasb.org/extlink&oid=6534315&loc=d3e8981-108599 Reference 5: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 29 -URI http://asc.fasb.org/extlink&oid=6534315&loc=d3e8864-108599 Reference 6: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 1 -URI http://asc.fasb.org/extlink&oid=6534315&loc=d3e8380-108599 Reference 7: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 35 -URI http://asc.fasb.org/extlink&oid=6534315&loc=d3e8984-108599 Reference 8: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 41 -URI http://asc.fasb.org/extlink&oid=6534315&loc=d3e9038-108599 Reference 9: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 32 -URI http://asc.fasb.org/extlink&oid=6534315&loc=d3e8933-108599 Reference 10: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Statement of Financial Accounting Standard (FAS) -Number 131 -LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy. Reference 11: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 30 -URI http://asc.fasb.org/extlink&oid=6534315&loc=d3e8906-108599 Reference 12: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 26 -URI http://asc.fasb.org/extlink&oid=6534315&loc=d3e8844-108599 Reference 13: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 40 -URI http://asc.fasb.org/extlink&oid=6534315&loc=d3e9031-108599 Reference 14: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 42 -URI http://asc.fasb.org/extlink&oid=6534315&loc=d3e9054-108599 Reference 15: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 31 -URI http://asc.fasb.org/extlink&oid=6534315&loc=d3e8924-108599 + Details
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