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DISTRIBUTION AGREEMENTS | 3 Months Ended
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Mar. 31, 2019
DISTRIBUTION AGREEMENTS |
DISTRIBUTION AGREEMENTS | 11. DISTRIBUTION AGREEMENTS In accordance with ASC 420, the Company expenses distributor termination costs in the period in which the written notification of termination occurs. The Company incurred termination costs of $10.7 million and $7.0 million for the three-months ended March 31, 2019 and 2018, respectively. In the normal course of business, amounts received pursuant to new and/or amended distribution agreements entered into with certain distributors, relating to the costs associated with terminating agreements with the Company’s prior distributors, are accounted for as deferred revenue and are recognized as revenue ratably over the anticipated life of the respective distribution agreement, generally 20 years. Revenue recognized was $14.2 million and $11.2 million for the three-months ended March 31, 2019 and 2018, respectively. During the three-months ended March 31, 2019, the Company agreed to the assignment of Kalil Bottling Group’s distribution territories to TCCC network bottlers. The Company incurred no distributor termination costs and received no deferred revenue in connection with this assignment. As of April 6, 2019, with the transition of Big Geyser Inc.’s distribution territory to TCCC network bottlers, all distribution territories in the U.S. have been transitioned to TCCC network bottlers.

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