ACQUISITIONS AND DIVESTITURES (Tables)

9 Months Ended

Sep. 30, 2015

Summary of amounts in the escrow fund in excess of the applicable amounts

Percentage Transitioned	Escrow Release
40%	Amounts in excess of $375 million
50%	Amounts in excess of $312.5 million
60%	Amounts in excess of $250 million
70%	Amounts in excess of $187.5 million
80%	Amounts in excess of $125 million
90%	Amounts in excess of $62.5 million
95%	All remaining amounts

Summary of TCCC Transaction consideration allocation

	Identifiable Assets Acquired and Liabilities Assumed		Consideration Transferred
Equity issued to TCCC for cash (22.2 million shares issued)	$	-	$	1,647,333
Equity issued to TCCC for KO Energy (11.8 million shares issued)	-		1,521,802
KO Energy intangibles - trademarks (non-amortizing)	325,500		-
KO Energy intangibles - customer relationships (amortizing)	35,000		-
KO Energy intangibles - other (non-amortizing)	13,700		-
KO Energy inventories	6,144		-
KO Energy accounts payable	(2,758)		-
Goodwill	1,287,777		-
Deferred tax liability	(143,561)		-
New and amended U.S. distribution rights transferred to TCCC’s distribution network	-		304,658
Monster Non-Energy business transferred to TCCC	-		198,009
Cash and escrow receivable	2,150,000		-

Total	$	3,671,802	$	3,671,802

Schedule of pro forma condensed combined financial information

	Three-Months Ended September 30, 2015
						Pro Forma Adjustments
	Monster Beverage Corporation as reported¹		KO Energy			Disposal of Monster Non- Energy		Other		Pro Forma Combined
Net sales	$	756,619	$	-		$	-	$	-	$	756,619
Net income	174,574		-			-		180		174,754

	Three-Months Ended September 30, 2014
						Pro Forma Adjustments
	Monster Beverage Corporation as reported		KO Energy			Disposal of Monster Non- Energy		Other		Pro Forma Combined
Net sales	$	635,972	$	85,608		$	(41,624)	$	3,840	$	683,796
Net income	121,600		54,614		²	(1,376)		(24,075)		150,763

¹Includes net sales of $69.9 million and net income of $27.4 million (tax affected) related to the acquired KO Energy assets for the three-months ended September 30, 2015.

²The $54.6 million of net income for KO Energy for the three-months ended September 30, 2014 is presented before tax. The associated estimated provision for income taxes is included in the “Other” category.

	Nine-Months Ended September 30, 2015
						Pro Forma Adjustments
	Monster Beverage Corporation as reported¹		KO Energy²			Disposal of Monster Non- Energy³		Other		Pro Forma Combined
Net sales	$	2,077,131	$	138,127		$	(60,824)	$	6,803	$	2,161,237
Net income	407,991		100,575		4	(101,881)		(36,487)		370,198

	Nine-Months Ended September 30, 2014
						Pro Forma Adjustments
	Monster Beverage Corporation as reported		KO Energy			Disposal of Monster Non- Energy		Other		Pro Forma Combined
Net sales	$	1,859,301	$	256,824		$	(119,608)	$	11,393	$	2,007,910
Net income	357,854		163,842		4	(4,398)		(74,747)		442,551

¹Includes net sales of $82.9 million and net income of $32.9 million (tax affected) related to the acquired KO Energy assets since the date of acquisition, June 12, 2015.

²Includes results through June 12, 2015, the date the TCCC Transaction was finalized. Net income for KO Energy includes only net revenues and direct operating expenses, rather than full “carve-out” financial statements, because such financial information would not be meaningful given that it is not possible to provide a meaningful allocation of business unit and corporate costs, interest or tax in respect of KO Energy.

³Includes results through June 12, 2015. Net income includes gain recognized on the sale of Monster Non-Energy of $161.5 million.

4The $100.6 million of net income for the nine-months ended September 30, 2015 and $163.8 million of net income for KO Energy for the nine-months ended September 30, 2014 are presented before tax. The associated estimated provision for income taxes is included in the “Other” category.

Schedule of other pro-forma adjustments

	Three-Months Ended September 30, 2015		Three-Months Ended September 30, 2014		Nine-Months Ended September 30, 2015¹		Nine-Months Ended September 30, 2014
Net sales:
Amortization of deferred revenue	$	-	$	3,840	$	6,803	$	11,393

Net income:
Amortization of deferred revenue	$	-	$	3,840	$	6,803	$	11,393
To record sales commissions	-		(9,588)		(15,470)		(28,764)
To record amortization of definite lived KO Energy intangibles	-		(1,764)		(3,126)		(5,236)
To eliminate TCCC Transaction expenses	292		2,567		15,425		3,635
Estimated provision for income taxes on pro forma adjustments	(112)		1,904		(1,398)		7,304
Estimated provision for income taxes on KO Energy income	-		(21,034)		(38,721)		(63,079)

Total	$	180	$	(24,075)	$	(36,487)	$	(74,747)

¹Includes amortization of deferred revenue, sales commissions and amortization of intangibles through June 12, 2015, the date the TCCC Transaction was consummated.