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RELATED PARTY TRANSACTIONS | 3 Months Ended
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Mar. 31, 2019
RELATED PARTY TRANSACTIONS |
RELATED PARTY TRANSACTIONS | 19. RELATED PARTY TRANSACTIONS TCCC controls approximately 18.8% of the voting interests of the Company. The TCCC Subsidiaries, the TCCC Related Parties and the TCCC independent bottlers, purchase and distribute certain of the Company’s products in certain domestic and international markets. The Company also pays TCCC a commission based on certain sales within the TCCC distribution network. TCCC commissions, based on sales to the TCCC Subsidiaries and the TCCC Related Parties, for the three- months ended March 31, 2019 were $12.1 million, and are included as a reduction to net sales. TCCC commissions, based on sales to TCCC independent bottlers/distributors for the three- months ended March 31, 2019 were $3.8 million, and are included in operating expenses. TCCC commissions, based on sales to the TCCC Subsidiaries and the TCCC Related Parties, for the three- months ended March 31, 2018 were $11.3 million, and are included as a reduction to net sales. TCCC commissions, based on sales to TCCC independent bottlers/distributors for the three- months ended March 31, 2018 were $3.1 million, and are included in operating expenses. Net sales to the TCCC Subsidiaries for the three-months ended March 31, 2019 and 2018 were $17.3 million and $35.0 million, respectively. As part of TCCC’s North America refranchising, the territories of certain TCCC Subsidiaries have been transitioned to certain independent TCCC bottlers/distributors and/or TCCC Related Parties. Accordingly, the Company’s net sales classified as sales to the TCCC Subsidiaries significantly decreased for the three- months ended March 31, 2019. The Company also purchases concentrates from TCCC which are then sold to certain of the Company's bottlers/distributors. Concentrate purchases from TCCC were $6.6 million and $2.9 million for the three-months ended March 31, 2019 and 2018, respectively. Certain TCCC Subsidiaries also contract manufacture certain of the Company’s Monster Energy® brand energy drinks. Such contract manufacturing expenses were $4.5 million and $5.4 million for the three-months ended March 31, 2019 and 2018, respectively. Accounts receivable, accounts payable and accrued promotional allowances related to the TCCC Subsidiaries are as follows at:
|  | March 31, |  | December 31,
|  | 2019 |  | 2018
Accounts receivable, net |  | $ | 18,305 |  | $ | 25,312
Accounts payable |  | $ | (35,016) |  | $ | (54,430)
Accrued promotional allowances |  | $ | (4,837) |  | $ | (4,044)
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 the three-months ended March 31, 2019 and 2018 were $0.3 million and $0.8 million, respectively. In December 2018, the Company and a director of the Company entered into a 50-50 partnership that purchased land, and real property thereon, in Kona, Hawaii for the purpose of producing coffee products. The Company’s initial 50% contribution of $1.9 million was accounted for as an equity investment and is included in other assets (non-current) in the accompanying condensed consolidated balance sheet at December 31, 2018. During the three-months ended March 31, 2019, the Company made an additional $0.05 million capital contribution and recorded an equity loss of $0.02 million. As of March 31, 2019, the Company’s equity investment is $1.9 million and is included in other assets (non-current) in the accompanying condensed consolidated balance sheet at March 31, 2019.

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- Definition The entire disclosure for related party transactions. Examples of related party transactions include transactions between (a) a parent company and its subsidiary; (b) subsidiaries of a common parent; (c) and entity and its principal owners; and (d) affiliates. + References Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 850 -URI http://asc.fasb.org/topic&trid=2122745 + Details
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