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SEGMENT INFORMATION

12 Months Ended

Dec. 31, 2021

SEGMENT INFORMATION

SEGMENT INFORMATION

19.        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, Reign Total Body Fuel® high performance energy drinks and True North® Pure Energy Seltzers, (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 ready-to-drink packaged drinks 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 years ended December 31 are as follows:

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​	​	​	​	​	​	​	​	​	​
​	​	​	​	​	​	​	​	​	​
​	​	​	​	​	​	​	​	​	​
​		2021			2020			2019
Net sales:	​	​	​	​	​	​	​	​	​
Monster Energy® Drinks⁽¹⁾	​	$	5,220,673	​	$	4,305,246	​	$	3,904,029
Strategic Brands	​		294,762	​		266,354	​		274,925
Other	​		25,917	​		27,038	​		21,865
Corporate and unallocated	​		—	​		—	​		—
​	​	$	5,541,352	​	$	4,598,638	​	$	4,200,819

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​	​	​	​	​	​	​	​	​	​
​	​	​	​	​	​	​	​	​	​
​	​	​	​	​	​	​	​	​	​
​		2021			2020			2019
Operating Income:	​	​	​	​	​	​	​	​	​
Monster Energy® Drinks⁽¹⁾	​	$	1,990,785	​	$	1,820,346	​	$	1,565,977
Strategic Brands	​		173,660	​		155,047	​		164,053
Other	​		6,935	​		5,930	​		3,650
Corporate and unallocated	​		(373,913)	​		(348,170)	​		(330,741)
​	​	$	1,797,467	​	$	1,633,153	​	$	1,402,939

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​	​	​	​	​	​	​	​	​	​
​	​	​	​	​	​	​	​	​	​
​	​	​	​	​	​	​	​	​	​
​		2021			2020			2019
Income before tax:	​	​	​	​	​	​	​	​	​
Monster Energy® Drinks⁽¹⁾	​	$	1,992,185	​	$	1,820,625	​	$	1,567,022
Strategic Brands	​		173,739	​		155,047	​		164,049
Other	​		6,935	​		5,933	​		3,655
Corporate and unallocated	​		(371,440)	​		(355,448)	​		(318,764)
​	​	$	1,801,419	​	$	1,626,157	​	$	1,415,962

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(1) Includes $41.5 million, $42.1 million and $46.3 million for the years ended December 31, 2021, 2020 and 2019, respectively, related to the recognition of deferred revenue.

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​	​	​	​	​	​	​	​	​	​
​	​	​	​	​	​	​	​	​	​
​		2021			2020			2019
Depreciation and amortization:	​	​	​	​	​	​	​	​	​
Monster Energy® Drinks	​	$	34,532	​	$	38,277	​	$	39,397
Strategic Brands	​		1,085	​		4,178	​		7,935
Other	​		4,485	​		4,631	​		4,637
Corporate and unallocated	​		10,053	​		9,944	​		8,758
​	​	$	50,155	​	$	57,030	​	$	60,727

​

Corporate and unallocated expenses were $373.9 million for the year ended December 31, 2021 and included $258.6 million of payroll costs, of which $70.3 million was attributable to stock-based compensation expense (See Note 15, “Stock-Based Compensation”), $77.9 million of professional service expenses, including accounting and legal costs, $9.3 million of insurance costs and $28.1 million of other operating expenses.

Corporate and unallocated expenses were $348.2 million for the year ended December 31, 2020 and included $234.1 million of payroll costs, of which $69.9 million was attributable to stock-based compensation expense (See Note 15, “Stock-Based Compensation”), $67.6 million of professional service expenses, including accounting and legal costs, $7.5 million of insurance costs and $39.0 million of other operating expenses.

Corporate and unallocated expenses were $330.7 million for the year ended December 31, 2019 and included $203.3 million of payroll costs, of which $63.4 million was attributable to stock-based compensation expense (See Note 15, “Stock-Based Compensation”), $78.5 million of professional service expenses, including accounting and legal costs, $6.1 million of insurance costs and $42.8 million of other operating expenses.

Coca-Cola Consolidated, Inc. accounted for approximately 12%, 12% and 13% of the Company’s net sales for the years ended December 31, 2021, 2020 and 2019, respectively.

Reyes Coca-Cola Bottling, LLC accounted for approximately 10%, 11% and 11% of the Company’s net sales for the years ended December 31, 2021, 2020 and 2019, respectively.

Coca-Cola Europacific Partners accounted for approximately 12%, 10% and 10% of the Company’s net sales for the years ended December 31, 2021, 2020 and 2019, respectively.

Net sales to customers outside the United States amounted to $2.04 billion, $1.51 billion and $1.33 billion for the years ended December 31, 2021, 2020 and 2019, respectively. Such sales were approximately 37%, 33% and 32% of net sales for the years ended December 31, 2021, 2020 and 2019, respectively.

Goodwill and other intangible assets for the Company’s reportable segments as of December 31, 2021 and 2020 are as follows:

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​	​	​	​	​	​	​
​		2021			2020
Goodwill and other intangible assets:	​	​	​	​	​	​
Monster Energy® Drinks	​	$	1,420,503	​	$	1,406,646
Strategic Brands	​		978,032	​		974,132
Other	​		5,494	​		9,911
Corporate and unallocated	​		—	​		—
​	​	$	2,404,029	​	$	2,390,689

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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.

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