2. REVENUE RECOGNITION

Upon adoption of ASC 606, commissions paid to TCCC based on sales to certain of the Company’s bottlers/distributors who are (i) consolidated subsidiaries of TCCC (the “TCCC Subsidiaries”), (ii) accounted for under the equity method by TCCC (the “TCCC Related Parties”) and (iii) those not included in (i) or (ii) (the “TCCC Independent Bottlers”) are accounted for as follows:


	Year Ended December 31, 2018
		Without Adoption of
Commissions Related To:	As Reported	ASC 606
TCCC Subsidiaries	Reduction to net sales	Reduction to net sales
TCCC Related Parties	Reduction to net sales	Operating expenses
TCCC Independent Bottlers	Operating expenses	Operating expenses

The impact of the adoption of ASC 606 on the Company’s consolidated statement of income for the year ended December 31, 2018 was as follows:


	Year Ended December 31, 2018
					Decrease due to
			Without Adoption		Adoption of ASC
	As Reported		of ASC 606		606
Net Sales	$	3,807,183	$	3,849,424	$	(42,241)	1
Operating Expenses	$	1,011,756	$	1,053,997	$	(42,241)	1

1 TCCC commissions based on sales to the TCCC Related Parties. There were no other identified changes to our revenue recognition policies as a result of the adoption of ASC 606.

Disaggregation of Revenue

The following table disaggregates the Company’s revenue by geographical markets and reportable segments:


	Year Ended December 31, 2018
							Latin
							America
	U.S. and						and
Net Sales	Canada		EMEA2		Asia Pacific		Caribbean		Total
Monster Energy® Drinks	$	2,627,000	$	500,826	$	225,172	$	145,429	$	3,498,427
Strategic Brands		179,677		77,841		26,254		2,064		285,836
Other		22,920		—		—		—		22,920
Total Net Sales	$	2,829,597	$	578,667	$	251,426	$	147,493	$	3,807,183

2Europe, Middle East and Africa (“EMEA”)

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 December 31, 2018, the Company had $356.3 million of deferred revenue, which is included in current and long-term deferred revenue in the Company’s consolidated balance sheet. As of December 31, 2017, the Company had $377.6 million of deferred revenue, which is included in current and long-term deferred revenue in the Company’s consolidated balance sheet. During the years ended December 31, 2018 and 2017, $44.3 million and $43.4 million, respectively, of deferred revenue, was recognized in net sales. See Note 18.