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RELATED PARTY TRANSACTIONS
 9 Months Ended
Sep. 30, 2015
RELATED PARTY TRANSACTIONS  
RELATED PARTY TRANSACTIONS

 

18.RELATED PARTY TRANSACTIONS

 

As a result of the TCCC Transaction, TCCC controls more than 10% of the voting interests of the Company.  TCCC, through certain wholly-owned subsidiaries (the “TCCC Subsidiaries”) and through certain affiliated companies (the “TCCC Affiliates”) purchases and distributes certain of the Company’s products both domestically and in certain international territories.  The Company also pays TCCC a sales commission based on certain sales within the TCCC bottling network. TCCC commissions  based on sales to the TCCC Affiliates for the three-months ended September 30, 2015 and 2014 were $7.7 million and $0.7 million, respectively. TCCC commissions  based on sales to the TCCC Affiliates for the nine-months ended September 30, 2015 and 2014 were $9.4 million and $1.6 million, respectively. TCCC commissions based on sales to the TCCC Subsidiaries are accounted for as a reduction to revenue and are reported in net sales to the TCCC Subsidiaries. Net sales to the TCCC Subsidiaries for the three-months ended September 30, 2015 and 2014 were $313.1 million and $176.6 million, respectively.  Net Sales to the TCCC Subsidiaries for the nine-months ended September 30, 2015 and 2014 were $842.9 million and $540.0 million, respectively. Accounts receivable, accounts payable and accrued promotional allowances related to the TCCC Subsidiaries are as follows at:

 

 

 

September 30, 
2015

 

December 31,
2014

 

 

 

 

 

 

 

Accounts receivable, net

 

 $
167,989

 

 $
79,404

 

Accounts payable

 

 $
2,854

 

 $
14,353

 

Accrued promotional allowances

 

 $
37,518

 

 $
23,776

 

 

Two directors and officers of the Company and their families are principal owners of a company that provides promotional materials to the Company. Expenses incurred with such company in connection with promotional materials purchased during both the three-months ended September 30, 2015 and 2014 were $0.3 million. Expenses incurred with such company in connection with promotional materials purchased during the nine-months ended September 30, 2015 and 2014 were $1.5 million and $0.5 million, respectively.