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SEGMENT INFORMATION | 3 Months Ended
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Mar. 31, 2021
SEGMENT INFORMATION |
SEGMENT INFORMATION | 18. SEGMENT INFORMATION ​ The Company has three operating and reportable segments: (i) Monster Energy® Drinks segment, which is primarily comprised of the Company’s Monster Energy® drinks and Reign Total Body Fuel® high performance energy drinks, (ii) Strategic Brands segment, which is primarily comprised of the various energy drink brands acquired from TCCC in 2015 as well as the Company’s affordable energy brands, and (iii) Other segment, which is comprised of the AFF Third-Party Products. ​ The Company’s Monster Energy® Drinks segment primarily generates net operating revenues by selling ready-to-drink packaged drinks primarily to bottlers/distributors. In some cases, the Company sells directly to retail grocery and specialty chains, wholesalers, club stores, mass merchandisers, convenience chains, drug stores, foodservice customers, value stores, e-commerce retailers and the military. ​ The Company’s Strategic Brands segment primarily generates net operating revenues by selling “concentrates” and/or “beverage bases” to authorized bottling and canning operations. Such bottlers generally combine the concentrates and/or beverage bases with sweeteners, water and other ingredients to produce ready-to-drink packaged energy drinks. The ready-to-drink packaged energy drinks are then sold by such bottlers to other bottlers/distributors and to retail grocery and specialty chains, wholesalers, club stores, mass merchandisers, convenience chains, foodservice customers, drug stores, value stores, e-commerce retailers and the military. To a lesser extent, the Strategic Brands segment generates net operating revenues by selling certain ready-to-drink packaged energy drinks to bottlers/distributors. ​ Generally, the Monster Energy® Drinks segment generates higher per case net operating revenues, but lower per case gross profit margin percentages than the Strategic Brands segment. ​ Corporate and unallocated amounts that do not relate to a reportable segment have been allocated to “Corporate & Unallocated.” No asset information, other than goodwill and other intangible assets, has been provided in the Company’s reportable segments, as management does not measure or allocate such assets on a segment basis. ​ The net revenues derived from the Company’s reportable segments and other financial information related thereto for the three-months ended March 31, 2021 and 2020 are as follows: ​
​ | ​ | ​ | ​ | ​ | ​ | ​
​ | ​ | Three-Months Ended
​ | ​ | March 31,
​ |  | 2021 |  | 2020
Net sales: | ​ | ​ | ​ | ​ | ​ | ​
Monster Energy® Drinks⁽¹⁾ | ​ | $ | 1,170,280 | ​ | $ | 992,454
Strategic Brands | ​ |  | 67,809 | ​ |  | 64,538
Other | ​ |  | 5,727 | ​ |  | 5,105
Corporate and unallocated | ​ |  | — | ​ |  | —
​ | ​ | $ | 1,243,816 | ​ | $ | 1,062,097
​
​ | ​ | ​ | ​ | ​ | ​ | ​
​ | ​ | Three-Months Ended
​ | ​ | March 31,
​ |  | 2021 |  | 2020
Operating Income: | ​ | ​ | ​ | ​ | ​ | ​
Monster Energy® Drinks⁽¹⁾ | ​ | $ | 464,819 | ​ | $ | 411,141
Strategic Brands | ​ |  | 45,140 | ​ |  | 36,719
Other | ​ |  | 1,793 | ​ |  | 787
Corporate and unallocated | ​ |  | (97,606) | ​ |  | (83,659)
​ | ​ | $ | 414,146 | ​ | $ | 364,988
​
​ | ​ | ​ | ​ | ​ | ​ | ​
​ | ​ | Three-Months Ended
​ | ​ | March 31,
​ |  | 2021 |  | 2020
Income before tax: | ​ | ​ | ​ | ​ | ​ | ​
Monster Energy® Drinks⁽¹⁾ | ​ | $ | 464,968 | ​ | $ | 411,178
Strategic Brands | ​ |  | 45,140 | ​ |  | 36,719
Other | ​ |  | 1,793 | ​ |  | 787
Corporate and unallocated | ​ |  | (98,514) | ​ |  | (82,824)
​ | ​ | $ | 413,387 | ​ | $ | 365,860
​
| (1) | Includes $10.4 million and $10.6 million for the three-months ended March 31, 2021 and 2020, respectively, related to the recognition of deferred revenue.
​
​ | ​ | ​ | ​ | ​ | ​ | ​
​ | ​ | Three-Months Ended
​ | ​ | March 31,
​ |  | 2021 |  | 2020
Depreciation and amortization: | ​ | ​ | ​ | ​ | ​ | ​
Monster Energy® Drinks | ​ | $ | 9,022 | ​ | $ | 9,651
Strategic Brands | ​ |  | 264 | ​ |  | 2,030
Other | ​ |  | 1,126 | ​ |  | 1,165
Corporate and unallocated | ​ |  | 2,413 | ​ |  | 2,479
​ | ​ | $ | 12,825 | ​ | $ | 15,325
​ Corporate and unallocated expenses for the three-months ended March 31, 2021 include $65.1 million of payroll costs, of which $18.3 million was attributable to stock-based compensation expenses (see Note 15 “Stock-Based Compensation”), as well as $20.4 million attributable to professional service expenses, including accounting and legal costs, and $12.1 million of other operating expenses. Corporate and unallocated expenses for the three-months ended March 31, 2020 include $55.3 million of payroll costs, of which $17.1 million was attributable to stock-based compensation expenses (see Note 15 “Stock-Based Compensation”), as well as $16.3 million attributable to professional service expenses, including accounting and legal costs, and $12.1 million of other operating expenses. ​ Coca-Cola Consolidated, Inc. accounted for approximately 12% of the Company’s net sales for both the three-months ended March 31, 2021 and 2020. ​ Reyes Coca-Cola Bottling, LLC accounted for approximately 9% and 11% of the Company’s net sales for the three-months ended March 31, 2021 and 2020, respectively. ​ Coca-Cola European Partners accounted for approximately 11% and 10% of the Company’s net sales for the three-months ended March 31, 2021 and 2020, respectively. ​ Net sales to customers outside the United States amounted to $459.4 million and $356.8 million for the three-months ended March 31, 2021 and 2020, respectively. Such sales were approximately 37% and 34% of net sales for the three-months ended March 31, 2021 and 2020, respectively. ​ Goodwill and other intangible assets for the Company’s reportable segments as of March 31, 2021 and December 31, 2020 are as follows: ​
​ | ​ | ​ | ​ | ​ | ​ | ​
​ |  | March 31, |  | December 31,
​ |  | 2021 |  | 2020
Goodwill and other intangible assets: | ​ | ​ | ​ | ​ | ​ | ​
Monster Energy® Drinks | ​ | $ | 1,410,816 | ​ | $ | 1,406,646
Strategic Brands | ​ |  | 975,130 | ​ |  | 974,132
Other | ​ |  | 8,789 | ​ |  | 9,911
Corporate and unallocated | ​ |  | — | ​ |  | —
​ | ​ | $ | 2,394,735 | ​ | $ | 2,390,689
​

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- Definition The entire disclosure for reporting segments including data and tables. Reportable segments include those that meet any of the following quantitative thresholds a) it's reported revenue, including sales to external customers and intersegment sales or transfers is 10 percent or more of the combined revenue, internal and external, of all operating segments b) the absolute amount of its reported profit or loss is 10 percent or more of the greater, in absolute amount of 1) the combined reported profit of all operating segments that did not report a loss or 2) the combined reported loss of all operating segments that did report a loss c) its assets are 10 percent or more of the combined assets of all operating segments. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -URI http://asc.fasb.org/topic&trid=2134510 + Details
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