ACQUISITIONS AND DIVESTITURES (Tables)

9 Months Ended

Sep. 30, 2016

Summary of AFF Transaction consideration allocation

	Identifiable Assets Acquired and Liabilities Assumed		Consideration Transferred
Intangibles - flavor formulas (non-amortizing)¹	$	618,000	$	-
Intangibles - flavor formulas (amortizing)	641		-
Intangibles - customer relationships (amortizing)	30,100		-
Intangibles - trademarks (amortizing)	500		-
Intangibles - other (amortizing)	200		-
Working capital (excluding inventory)	1,861		-
Inventory	27,600		-
Property and equipment, net	1,175		-
Favorable leases	4,480		-
Goodwill	3,928		-
Cash	-		688,485
Total	$	688,485	$	688,485

1Represents proprietary formulas for the Company’s principal products.

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

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

	Nine-Months Ended September 30, 2015
					Pro Forma Adjustments
	Monster Beverage Corporation as reported²		KO Energy³		Disposal of Monster Non- Energy4		Other		Pro Forma Combined
Net sales	$	2,077,131	$	138,127	$	(60,824)	$	6,803	$	2,161,237
Net income	407,991		100,575		(101,881)		(36,487)		370,198

1 Includes 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.

2 Includes net sales of $82.9 million and net income of $32.9 million (tax affected) related to the acquired KO Energy assets from June 12, 2015 (the date of acquisition) through September 30, 2015.

3 Includes results through June 12, 2015, the date the TCCC Transaction was finalized. The $100.6 million of net income for KO Energy for the nine-months ended September 30, 2015, is presented before tax. The associated estimated provision for income taxes is included in the “Other” category. Net income for KO Energy includes only net revenues and direct operating expenses, rather than full “carve-out” financial statements, because such financial statements 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.

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

Schedule of other pro-forma adjustments

	Three-Months Ended September 30, 2015		Nine-Months Ended September 30, 2015
Net sales:
Amortization of deferred revenue	$	-	$	6,803

Net income:
Amortization of deferred revenue	$	-	$	6,803
To record sales commissions	-		(15,470)
To record amortization of definite lived KO Energy intangibles	-		(3,126)
To eliminate TCCC Transaction expenses	292		15,425
Estimated provision for income taxes on pro forma adjustments	(112)		(1,398)
Estimated provision for income taxes on KO Energy income	-		(38,721)
Total	$	180	$	(36,487)