Quarterly Report (10-q)

0000865752--12-312022Q2falsehttp://fasb.org/us-gaap/2022#AccruedLiabilitiesCurrenthttp://fasb.org/us-gaap/2022#OtherLiabilitiesNoncurrenttrue4P1YP12YP5YP1Yhttp://fasb.org/us-gaap/2022#OtherAssetsNoncurrenthttp://fasb.org/us-gaap/2022#PropertyPlantAndEquipmentNethttp://fasb.org/us-gaap/2022#OtherAssetsNoncurrenthttp://fasb.org/us-gaap/2022#PropertyPlantAndEquipmentNethttp://fasb.org/us-gaap/2022#AccruedLiabilitiesCurrenthttp://fasb.org/us-gaap/2022#OtherLiabilitiesNoncurrenthttp://fasb.org/us-gaap/2022#OtherNonoperatingIncomeExpensehttp://fasb.org/us-gaap/2022#OtherNonoperatingIncomeExpensehttp://fasb.org/us-gaap/2022#OtherNonoperatingIncomeExpensehttp://fasb.org/us-gaap/2022#OtherNonoperatingIncomeExpenseP5Y40000865752us-gaap:TreasuryStockCommonMember2022-04-012022-06-300000865752mnst:June2022RepurchasePlanMember2022-04-012022-06-300000865752us-gaap:TreasuryStockCommonMember2022-01-012022-03-310000865752mnst:March2020RepurchasePlanMember2022-01-012022-06-300000865752srt:MaximumMembermnst:June2022RepurchasePlanMember2022-06-140000865752srt:MaximumMembermnst:March2020RepurchasePlanMember2020-03-310000865752mnst:March2020RepurchasePlanMember2022-08-052022-08-050000865752mnst:June2022RepurchasePlanMember2022-08-052022-08-050000865752us-gaap:CommonStockMember2022-04-012022-06-300000865752us-gaap:CommonStockMember2022-01-012022-03-310000865752us-gaap:RetainedEarningsMember2022-06-300000865752us-gaap:AdditionalPaidInCapitalMember2022-06-300000865752us-gaap:AccumulatedOtherComprehensiveIncomeMember2022-06-300000865752us-gaap:RetainedEarningsMember2022-03-310000865752us-gaap:AdditionalPaidInCapitalMember2022-03-310000865752us-gaap:AccumulatedOtherComprehensiveIncomeMember2022-03-3100008657522022-03-310000865752us-gaap:RetainedEarningsMember2021-12-310000865752us-gaap:AdditionalPaidInCapitalMember2021-12-310000865752us-gaap:AccumulatedOtherComprehensiveIncomeMember2021-12-310000865752us-gaap:RetainedEarningsMember2021-06-300000865752us-gaap:AdditionalPaidInCapitalMember2021-06-300000865752us-gaap:AccumulatedOtherComprehensiveIncomeMember2021-06-300000865752us-gaap:RetainedEarningsMember2021-03-310000865752us-gaap:AdditionalPaidInCapitalMember2021-03-310000865752us-gaap:AccumulatedOtherComprehensiveIncomeMember2021-03-3100008657522021-03-310000865752us-gaap:RetainedEarningsMember2020-12-310000865752us-gaap:AdditionalPaidInCapitalMember2020-12-310000865752us-gaap:AccumulatedOtherComprehensiveIncomeMember2020-12-310000865752us-gaap:TreasuryStockCommonMember2022-06-300000865752us-gaap:CommonStockMember2022-06-300000865752us-gaap:TreasuryStockCommonMember2022-03-310000865752us-gaap:CommonStockMember2022-03-310000865752us-gaap:TreasuryStockCommonMember2021-12-310000865752us-gaap:CommonStockMember2021-12-310000865752us-gaap:TreasuryStockCommonMember2021-06-300000865752us-gaap:CommonStockMember2021-06-300000865752us-gaap:TreasuryStockCommonMember2021-03-310000865752us-gaap:CommonStockMember2021-03-310000865752us-gaap:TreasuryStockCommonMember2020-12-310000865752us-gaap:CommonStockMember2020-12-310000865752us-gaap:RestrictedStockUnitsRSUMember2022-04-012022-06-300000865752us-gaap:RestrictedStockUnitsRSUMember2021-04-012021-06-300000865752mnst:AwardGrantedJanuary2022ThroughMarch2022Member2022-01-012022-06-300000865752mnst:AwardGrantedApril2022ThroughJune2022Member2022-01-012022-06-300000865752mnst:RestrictedStockUnitsAndPerformanceShareUnitsMember2021-12-310000865752us-gaap:RestrictedStockUnitsRSUMember2022-01-012022-06-300000865752us-gaap:RestrictedStockUnitsRSUMember2021-01-012021-06-300000865752mnst:AwardGrantedJanuary2022ThroughMarch2022Membermnst:RestrictedStockUnitsAndPerformanceShareUnitsMember2022-01-012022-06-300000865752mnst:AwardGrantedApril2022ThroughJune2022Membermnst:RestrictedStockUnitsAndPerformanceShareUnitsMember2022-01-012022-06-300000865752us-gaap:NonUsMemberus-gaap:SalesRevenueProductLineMember2022-04-012022-06-300000865752us-gaap:EMEAMembermnst:StrategicBrandsSegmentMember2022-04-012022-06-300000865752us-gaap:EMEAMembermnst:MonsterEnergyDrinksSegmentMember2022-04-012022-06-300000865752srt:AsiaPacificMembermnst:StrategicBrandsSegmentMember2022-04-012022-06-300000865752srt:AsiaPacificMembermnst:MonsterEnergyDrinksSegmentMember2022-04-012022-06-300000865752mnst:U.s.AndCanadaMemberus-gaap:AllOtherSegmentsMember2022-04-012022-06-300000865752mnst:U.s.AndCanadaMembermnst:StrategicBrandsSegmentMember2022-04-012022-06-300000865752mnst:U.s.AndCanadaMembermnst:MonsterEnergyDrinksSegmentMember2022-04-012022-06-300000865752mnst:U.s.AndCanadaMembermnst:AlcoholBrandsSegmentMember2022-04-012022-06-300000865752mnst:LatinAmericaAndCaribbeanMembermnst:StrategicBrandsSegmentMember2022-04-012022-06-300000865752mnst:LatinAmericaAndCaribbeanMembermnst:MonsterEnergyDrinksSegmentMember2022-04-012022-06-300000865752us-gaap:EMEAMember2022-04-012022-06-300000865752us-gaap:AllOtherSegmentsMember2022-04-012022-06-300000865752srt:AsiaPacificMember2022-04-012022-06-300000865752mnst:U.s.AndCanadaMember2022-04-012022-06-300000865752mnst:StrategicBrandsSegmentMember2022-04-012022-06-300000865752mnst:MonsterEnergyDrinksSegmentMember2022-04-012022-06-300000865752mnst:LatinAmericaAndCaribbeanMember2022-04-012022-06-300000865752mnst:AlcoholBrandsSegmentMember2022-04-012022-06-300000865752us-gaap:NonUsMemberus-gaap:SalesRevenueProductLineMember2022-01-012022-06-300000865752us-gaap:EMEAMembermnst:StrategicBrandsSegmentMember2022-01-012022-06-300000865752us-gaap:EMEAMembermnst:MonsterEnergyDrinksSegmentMember2022-01-012022-06-300000865752srt:AsiaPacificMembermnst:StrategicBrandsSegmentMember2022-01-012022-06-300000865752srt:AsiaPacificMembermnst:MonsterEnergyDrinksSegmentMember2022-01-012022-06-300000865752mnst:U.s.AndCanadaMemberus-gaap:AllOtherSegmentsMember2022-01-012022-06-300000865752mnst:U.s.AndCanadaMembermnst:StrategicBrandsSegmentMember2022-01-012022-06-300000865752mnst:U.s.AndCanadaMembermnst:MonsterEnergyDrinksSegmentMember2022-01-012022-06-300000865752mnst:U.s.AndCanadaMembermnst:AlcoholBrandsSegmentMember2022-01-012022-06-300000865752mnst:LatinAmericaAndCaribbeanMembermnst:StrategicBrandsSegmentMember2022-01-012022-06-300000865752mnst:LatinAmericaAndCaribbeanMembermnst:MonsterEnergyDrinksSegmentMember2022-01-012022-06-300000865752us-gaap:EMEAMember2022-01-012022-06-300000865752us-gaap:AllOtherSegmentsMember2022-01-012022-06-300000865752srt:AsiaPacificMember2022-01-012022-06-300000865752mnst:U.s.AndCanadaMember2022-01-012022-06-300000865752mnst:StrategicBrandsSegmentMember2022-01-012022-06-300000865752mnst:MonsterEnergyDrinksSegmentMember2022-01-012022-06-300000865752mnst:LatinAmericaAndCaribbeanMember2022-01-012022-06-300000865752us-gaap:NonUsMemberus-gaap:SalesRevenueProductLineMember2021-04-012021-06-300000865752us-gaap:EMEAMembermnst:StrategicBrandsSegmentMember2021-04-012021-06-300000865752us-gaap:EMEAMembermnst:MonsterEnergyDrinksSegmentMember2021-04-012021-06-300000865752srt:AsiaPacificMembermnst:StrategicBrandsSegmentMember2021-04-012021-06-300000865752srt:AsiaPacificMembermnst:MonsterEnergyDrinksSegmentMember2021-04-012021-06-300000865752mnst:U.s.AndCanadaMemberus-gaap:AllOtherSegmentsMember2021-04-012021-06-300000865752mnst:U.s.AndCanadaMembermnst:StrategicBrandsSegmentMember2021-04-012021-06-300000865752mnst:U.s.AndCanadaMembermnst:MonsterEnergyDrinksSegmentMember2021-04-012021-06-300000865752mnst:LatinAmericaAndCaribbeanMembermnst:StrategicBrandsSegmentMember2021-04-012021-06-300000865752mnst:LatinAmericaAndCaribbeanMembermnst:MonsterEnergyDrinksSegmentMember2021-04-012021-06-300000865752us-gaap:EMEAMember2021-04-012021-06-300000865752us-gaap:AllOtherSegmentsMember2021-04-012021-06-300000865752srt:AsiaPacificMember2021-04-012021-06-300000865752mnst:U.s.AndCanadaMember2021-04-012021-06-300000865752mnst:StrategicBrandsSegmentMember2021-04-012021-06-300000865752mnst:MonsterEnergyDrinksSegmentMember2021-04-012021-06-300000865752mnst:LatinAmericaAndCaribbeanMember2021-04-012021-06-300000865752us-gaap:NonUsMemberus-gaap:SalesRevenueProductLineMember2021-01-012021-06-300000865752us-gaap:EMEAMembermnst:StrategicBrandsSegmentMember2021-01-012021-06-300000865752us-gaap:EMEAMembermnst:MonsterEnergyDrinksSegmentMember2021-01-012021-06-300000865752srt:AsiaPacificMembermnst:StrategicBrandsSegmentMember2021-01-012021-06-300000865752srt:AsiaPacificMembermnst:MonsterEnergyDrinksSegmentMember2021-01-012021-06-300000865752mnst:U.s.AndCanadaMemberus-gaap:AllOtherSegmentsMember2021-01-012021-06-300000865752mnst:U.s.AndCanadaMembermnst:StrategicBrandsSegmentMember2021-01-012021-06-300000865752mnst:U.s.AndCanadaMembermnst:MonsterEnergyDrinksSegmentMember2021-01-012021-06-300000865752mnst:LatinAmericaAndCaribbeanMembermnst:StrategicBrandsSegmentMember2021-01-012021-06-300000865752mnst:LatinAmericaAndCaribbeanMembermnst:MonsterEnergyDrinksSegmentMember2021-01-012021-06-300000865752us-gaap:EMEAMember2021-01-012021-06-300000865752srt:AsiaPacificMember2021-01-012021-06-300000865752mnst:U.s.AndCanadaMember2021-01-012021-06-300000865752mnst:LatinAmericaAndCaribbeanMember2021-01-012021-06-300000865752mnst:CocaColaCompanyMember2022-04-012022-06-300000865752mnst:CocaColaCompanyMember2022-01-012022-06-300000865752mnst:CocaColaCompanyMember2021-04-012021-06-300000865752mnst:CocaColaCompanyMember2021-01-012021-06-300000865752mnst:PrincipalOwnersMember2021-04-012021-06-300000865752mnst:PrincipalOwnersMember2021-01-012021-06-300000865752us-gaap:VehiclesMember2022-06-300000865752us-gaap:SoftwareAndSoftwareDevelopmentCostsMember2022-06-300000865752us-gaap:OfficeEquipmentMember2022-06-300000865752us-gaap:LeaseholdImprovementsMember2022-06-300000865752us-gaap:LandMember2022-06-300000865752us-gaap:FurnitureAndFixturesMember2022-06-300000865752us-gaap:EquipmentMember2022-06-300000865752us-gaap:BuildingMember2022-06-300000865752us-gaap:VehiclesMember2021-12-310000865752us-gaap:SoftwareAndSoftwareDevelopmentCostsMember2021-12-310000865752us-gaap:OfficeEquipmentMember2021-12-310000865752us-gaap:LeaseholdImprovementsMember2021-12-310000865752us-gaap:LandMember2021-12-310000865752us-gaap:FurnitureAndFixturesMember2021-12-310000865752us-gaap:EquipmentMember2021-12-310000865752us-gaap:BuildingMember2021-12-310000865752us-gaap:EmployeeStockOptionMember2022-04-012022-06-300000865752us-gaap:EmployeeStockOptionMember2021-04-012021-06-300000865752us-gaap:EmployeeStockOptionMember2021-01-012021-06-300000865752us-gaap:CorporateNonSegmentMember2017-01-012017-12-310000865752us-gaap:AccumulatedTranslationAdjustmentMember2022-01-012022-06-300000865752us-gaap:AccumulatedNetUnrealizedInvestmentGainLossMember2022-01-012022-06-300000865752us-gaap:AccumulatedTranslationAdjustmentMember2021-01-012021-06-300000865752us-gaap:AccumulatedNetUnrealizedInvestmentGainLossMember2021-01-012021-06-300000865752mnst:RealEstateLeaseArrangementMember2022-06-300000865752mnst:RealEstateLeaseArrangementMember2021-12-310000865752us-gaap:RetainedEarningsMember2022-04-012022-06-300000865752us-gaap:RetainedEarningsMember2022-01-012022-03-310000865752us-gaap:InventoriesMember2022-01-012022-06-300000865752srt:MinimumMember2022-06-300000865752srt:MaximumMember2022-06-300000865752mnst:AlcoholBrandsSegmentMember2022-01-012022-06-300000865752us-gaap:AllOtherSegmentsMember2021-01-012021-06-300000865752mnst:StrategicBrandsSegmentMember2021-01-012021-06-300000865752mnst:MonsterEnergyDrinksSegmentMember2021-01-012021-06-300000865752mnst:AlcoholBrandsSegmentMember2021-01-012021-06-300000865752mnst:StrategicBrandsSegmentMember2022-06-300000865752mnst:MonsterEnergyDrinksSegmentMember2022-06-300000865752mnst:AlcoholBrandsSegmentMember2022-06-300000865752mnst:StrategicBrandsSegmentMember2021-12-310000865752mnst:MonsterEnergyDrinksSegmentMember2021-12-310000865752mnst:StrategicBrandsSegmentMember2021-06-300000865752mnst:MonsterEnergyDrinksSegmentMember2021-06-300000865752mnst:StrategicBrandsSegmentMember2020-12-310000865752mnst:MonsterEnergyDrinksSegmentMember2020-12-310000865752srt:DirectorMember2022-04-012022-06-300000865752srt:DirectorMember2022-01-012022-06-300000865752srt:MinimumMember2022-01-012022-06-300000865752mnst:EquipmentLeaseArrangementMember2022-06-300000865752mnst:EquipmentLeaseArrangementMember2021-12-310000865752us-gaap:OtherLiabilitiesMember2022-06-300000865752us-gaap:AccruedLiabilitiesMember2022-06-300000865752us-gaap:OtherLiabilitiesMember2021-12-310000865752us-gaap:AccruedLiabilitiesMember2021-12-310000865752srt:DirectorMember2022-06-300000865752srt:DirectorMember2018-12-310000865752srt:MaximumMemberus-gaap:ForeignExchangeContractMember2022-01-012022-06-300000865752us-gaap:ForeignExchangeContractMemberus-gaap:NotDesignatedAsHedgingInstrumentEconomicHedgeMember2022-04-012022-06-300000865752us-gaap:ForeignExchangeContractMemberus-gaap:NotDesignatedAsHedgingInstrumentEconomicHedgeMember2022-01-012022-06-300000865752us-gaap:ForeignExchangeContractMemberus-gaap:NotDesignatedAsHedgingInstrumentEconomicHedgeMember2021-04-012021-06-300000865752us-gaap:ForeignExchangeContractMemberus-gaap:NotDesignatedAsHedgingInstrumentEconomicHedgeMember2021-01-012021-06-300000865752us-gaap:AccruedLiabilitiesMembermnst:ReceiveUsdPayCnyMemberus-gaap:NotDesignatedAsHedgingInstrumentEconomicHedgeMember2022-06-300000865752us-gaap:AccruedLiabilitiesMembermnst:ReceiveSgdPayUsdMemberus-gaap:NotDesignatedAsHedgingInstrumentEconomicHedgeMember2022-06-300000865752us-gaap:AccruedLiabilitiesMembermnst:ReceiveRsdPayUsdMemberus-gaap:NotDesignatedAsHedgingInstrumentEconomicHedgeMember2022-06-300000865752us-gaap:AccruedLiabilitiesMembermnst:ReceiveCadPayUsdMemberus-gaap:NotDesignatedAsHedgingInstrumentEconomicHedgeMember2022-06-300000865752us-gaap:AccruedLiabilitiesMembermnst:ReceiveUSDPayZARMemberus-gaap:NotDesignatedAsHedgingInstrumentEconomicHedgeMember2021-12-310000865752us-gaap:AccruedLiabilitiesMembermnst:ReceiveUsdPayNzdMemberus-gaap:NotDesignatedAsHedgingInstrumentEconomicHedgeMember2021-12-310000865752us-gaap:AccruedLiabilitiesMembermnst:ReceiveUsdPayGbpMemberus-gaap:NotDesignatedAsHedgingInstrumentEconomicHedgeMember2021-12-310000865752us-gaap:AccruedLiabilitiesMembermnst:ReceiveUsdPayEurMemberus-gaap:NotDesignatedAsHedgingInstrumentEconomicHedgeMember2021-12-310000865752us-gaap:AccruedLiabilitiesMembermnst:ReceiveUsdPayDkkMemberus-gaap:NotDesignatedAsHedgingInstrumentEconomicHedgeMember2021-12-310000865752us-gaap:AccruedLiabilitiesMembermnst:ReceiveUsdPayCnyMemberus-gaap:NotDesignatedAsHedgingInstrumentEconomicHedgeMember2021-12-310000865752us-gaap:AccruedLiabilitiesMembermnst:ReceiveUSDPayAUDMemberus-gaap:NotDesignatedAsHedgingInstrumentEconomicHedgeMember2021-12-310000865752us-gaap:AccountsReceivableMembermnst:ReceiveUSDPayZARMemberus-gaap:NotDesignatedAsHedgingInstrumentEconomicHedgeMember2022-06-300000865752us-gaap:AccountsReceivableMembermnst:ReceiveUsdPayNzdMemberus-gaap:NotDesignatedAsHedgingInstrumentEconomicHedgeMember2022-06-300000865752us-gaap:AccountsReceivableMembermnst:ReceiveUsdPayMxnMemberus-gaap:NotDesignatedAsHedgingInstrumentEconomicHedgeMember2022-06-300000865752us-gaap:AccountsReceivableMembermnst:ReceiveUsdPayGbpMemberus-gaap:NotDesignatedAsHedgingInstrumentEconomicHedgeMember2022-06-300000865752us-gaap:AccountsReceivableMembermnst:ReceiveUsdPayEurMemberus-gaap:NotDesignatedAsHedgingInstrumentEconomicHedgeMember2022-06-300000865752us-gaap:AccountsReceivableMembermnst:ReceiveUsdPayDkkMemberus-gaap:NotDesignatedAsHedgingInstrumentEconomicHedgeMember2022-06-300000865752us-gaap:AccountsReceivableMembermnst:ReceiveUSDPayCOPMemberus-gaap:NotDesignatedAsHedgingInstrumentEconomicHedgeMember2022-06-300000865752us-gaap:AccountsReceivableMembermnst:ReceiveUSDPayAUDMemberus-gaap:NotDesignatedAsHedgingInstrumentEconomicHedgeMember2022-06-300000865752us-gaap:AccountsReceivableMembermnst:ReceiveUsdPayRubMemberus-gaap:NotDesignatedAsHedgingInstrumentEconomicHedgeMember2021-12-310000865752us-gaap:AccountsReceivableMembermnst:ReceiveUSDPayCOPMemberus-gaap:NotDesignatedAsHedgingInstrumentEconomicHedgeMember2021-12-310000865752us-gaap:AccountsReceivableMembermnst:ReceiveSgdPayUsdMemberus-gaap:NotDesignatedAsHedgingInstrumentEconomicHedgeMember2021-12-310000865752us-gaap:AccountsReceivableMembermnst:ReceiveRsdPayUsdMemberus-gaap:NotDesignatedAsHedgingInstrumentEconomicHedgeMember2021-12-310000865752us-gaap:LineOfCreditMember2022-06-300000865752us-gaap:NonUsMemberus-gaap:SalesRevenueProductLineMemberus-gaap:CustomerConcentrationRiskMember2022-04-012022-06-300000865752mnst:ReyesCocaColaBottlingMemberus-gaap:SalesRevenueProductLineMemberus-gaap:CustomerConcentrationRiskMember2022-04-012022-06-300000865752mnst:CocaColaEuropeanPartnersMemberus-gaap:SalesRevenueProductLineMemberus-gaap:CustomerConcentrationRiskMember2022-04-012022-06-300000865752mnst:CocaColaConsolidatedIncMemberus-gaap:SalesRevenueProductLineMemberus-gaap:CustomerConcentrationRiskMember2022-04-012022-06-300000865752us-gaap:NonUsMemberus-gaap:SalesRevenueProductLineMemberus-gaap:CustomerConcentrationRiskMember2022-01-012022-06-300000865752mnst:ReyesCocaColaBottlingMemberus-gaap:SalesRevenueProductLineMemberus-gaap:CustomerConcentrationRiskMember2022-01-012022-06-300000865752mnst:CocaColaEuropeanPartnersMemberus-gaap:SalesRevenueProductLineMemberus-gaap:CustomerConcentrationRiskMember2022-01-012022-06-300000865752mnst:CocaColaConsolidatedIncMemberus-gaap:SalesRevenueProductLineMemberus-gaap:CustomerConcentrationRiskMember2022-01-012022-06-300000865752us-gaap:NonUsMemberus-gaap:SalesRevenueProductLineMemberus-gaap:CustomerConcentrationRiskMember2021-04-012021-06-300000865752mnst:ReyesCocaColaBottlingMemberus-gaap:SalesRevenueProductLineMemberus-gaap:CustomerConcentrationRiskMember2021-04-012021-06-300000865752mnst:CocaColaEuropeanPartnersMemberus-gaap:SalesRevenueProductLineMemberus-gaap:CustomerConcentrationRiskMember2021-04-012021-06-300000865752mnst:CocaColaConsolidatedIncMemberus-gaap:SalesRevenueProductLineMemberus-gaap:CustomerConcentrationRiskMember2021-04-012021-06-300000865752us-gaap:NonUsMemberus-gaap:SalesRevenueProductLineMemberus-gaap:CustomerConcentrationRiskMember2021-01-012021-06-300000865752mnst:ReyesCocaColaBottlingMemberus-gaap:SalesRevenueProductLineMemberus-gaap:CustomerConcentrationRiskMember2021-01-012021-06-300000865752mnst:CocaColaEuropeanPartnersMemberus-gaap:SalesRevenueProductLineMemberus-gaap:CustomerConcentrationRiskMember2021-01-012021-06-300000865752mnst:CocaColaConsolidatedIncMemberus-gaap:SalesRevenueProductLineMemberus-gaap:CustomerConcentrationRiskMember2021-01-012021-06-300000865752mnst:VotingInterestsMembermnst:CocaColaCompanyMember2022-06-300000865752mnst:VotingInterestsMembersrt:DirectorMember2018-12-310000865752us-gaap:ShortTermInvestmentsMemberus-gaap:CommercialPaperMember2022-06-300000865752us-gaap:ShortTermInvestmentsMemberus-gaap:CertificatesOfDepositMember2022-06-300000865752us-gaap:ShortTermInvestmentsMemberus-gaap:MunicipalBondsMember2021-12-310000865752us-gaap:ShortTermInvestmentsMemberus-gaap:CommercialPaperMember2021-12-310000865752us-gaap:ShortTermInvestmentsMemberus-gaap:CertificatesOfDepositMember2021-12-310000865752us-gaap:AccumulatedOtherComprehensiveIncomeMember2022-04-012022-06-300000865752us-gaap:AccumulatedOtherComprehensiveIncomeMember2022-01-012022-03-310000865752us-gaap:ShortTermInvestmentsMemberus-gaap:USTreasurySecuritiesMember2022-06-300000865752us-gaap:ShortTermInvestmentsMemberus-gaap:USGovernmentAgenciesDebtSecuritiesMember2022-06-300000865752us-gaap:ShortTermInvestmentsMemberus-gaap:USGovernmentAgenciesDebtSecuritiesMember2021-12-310000865752us-gaap:OtherLongTermInvestmentsMemberus-gaap:USTreasurySecuritiesMember2021-12-310000865752us-gaap:OtherLongTermInvestmentsMemberus-gaap:USGovernmentAgenciesDebtSecuritiesMember2021-12-310000865752us-gaap:ShortTermInvestmentsMemberus-gaap:MunicipalBondsMember2022-06-300000865752us-gaap:OtherLongTermInvestmentsMemberus-gaap:USTreasurySecuritiesMember2022-06-300000865752us-gaap:OtherLongTermInvestmentsMemberus-gaap:USGovernmentAgenciesDebtSecuritiesMember2022-06-300000865752us-gaap:OtherLongTermInvestmentsMemberus-gaap:MunicipalBondsMember2022-06-300000865752us-gaap:ShortTermInvestmentsMemberus-gaap:USTreasurySecuritiesMember2021-12-310000865752us-gaap:FairValueInputsLevel2Memberus-gaap:USTreasurySecuritiesMember2022-06-300000865752us-gaap:FairValueInputsLevel2Memberus-gaap:USGovernmentAgenciesDebtSecuritiesMember2022-06-300000865752us-gaap:FairValueInputsLevel2Memberus-gaap:MunicipalBondsMember2022-06-300000865752us-gaap:FairValueInputsLevel2Memberus-gaap:CommercialPaperMember2022-06-300000865752us-gaap:FairValueInputsLevel2Memberus-gaap:CertificatesOfDepositMember2022-06-300000865752us-gaap:FairValueInputsLevel1Memberus-gaap:MoneyMarketFundsMember2022-06-300000865752us-gaap:EstimateOfFairValueFairValueDisclosureMemberus-gaap:USTreasurySecuritiesMember2022-06-300000865752us-gaap:EstimateOfFairValueFairValueDisclosureMemberus-gaap:USGovernmentAgenciesDebtSecuritiesMember2022-06-300000865752us-gaap:EstimateOfFairValueFairValueDisclosureMemberus-gaap:MunicipalBondsMember2022-06-300000865752us-gaap:EstimateOfFairValueFairValueDisclosureMemberus-gaap:MoneyMarketFundsMember2022-06-300000865752us-gaap:EstimateOfFairValueFairValueDisclosureMemberus-gaap:CommercialPaperMember2022-06-300000865752us-gaap:EstimateOfFairValueFairValueDisclosureMemberus-gaap:CertificatesOfDepositMember2022-06-300000865752us-gaap:FairValueInputsLevel1Member2022-06-300000865752us-gaap:FairValueInputsLevel2Memberus-gaap:USTreasurySecuritiesMember2021-12-310000865752us-gaap:FairValueInputsLevel2Memberus-gaap:USGovernmentAgenciesDebtSecuritiesMember2021-12-310000865752us-gaap:FairValueInputsLevel2Memberus-gaap:MunicipalBondsMember2021-12-310000865752us-gaap:FairValueInputsLevel2Memberus-gaap:CommercialPaperMember2021-12-310000865752us-gaap:FairValueInputsLevel2Memberus-gaap:CertificatesOfDepositMember2021-12-310000865752us-gaap:FairValueInputsLevel1Memberus-gaap:MoneyMarketFundsMember2021-12-310000865752us-gaap:EstimateOfFairValueFairValueDisclosureMemberus-gaap:USTreasurySecuritiesMember2021-12-310000865752us-gaap:EstimateOfFairValueFairValueDisclosureMemberus-gaap:USGovernmentAgenciesDebtSecuritiesMember2021-12-310000865752us-gaap:EstimateOfFairValueFairValueDisclosureMemberus-gaap:MunicipalBondsMember2021-12-310000865752us-gaap:EstimateOfFairValueFairValueDisclosureMemberus-gaap:MoneyMarketFundsMember2021-12-310000865752us-gaap:EstimateOfFairValueFairValueDisclosureMemberus-gaap:CommercialPaperMember2021-12-310000865752us-gaap:EstimateOfFairValueFairValueDisclosureMemberus-gaap:CertificatesOfDepositMember2021-12-310000865752us-gaap:FairValueInputsLevel1Member2021-12-310000865752mnst:RealPropertyAndEquipmentInNorwalkMemberus-gaap:LandMember2022-05-052022-05-050000865752mnst:RealPropertyAndEquipmentInNorwalkMemberus-gaap:EquipmentMember2022-05-052022-05-050000865752mnst:RealPropertyAndEquipmentInNorwalkMemberus-gaap:BuildingMember2022-05-052022-05-050000865752mnst:RealPropertyAndEquipmentInNorwalkMember2022-05-052022-05-050000865752us-gaap:AdditionalPaidInCapitalMember2022-04-012022-06-300000865752us-gaap:AdditionalPaidInCapitalMember2022-01-012022-03-3100008657522022-01-012022-03-310000865752us-gaap:TreasuryStockCommonMember2021-04-012021-06-300000865752us-gaap:RetainedEarningsMember2021-04-012021-06-300000865752us-gaap:CommonStockMember2021-04-012021-06-300000865752us-gaap:AdditionalPaidInCapitalMember2021-04-012021-06-300000865752us-gaap:AccumulatedOtherComprehensiveIncomeMember2021-04-012021-06-300000865752us-gaap:TreasuryStockCommonMember2021-01-012021-03-310000865752us-gaap:RetainedEarningsMember2021-01-012021-03-310000865752us-gaap:CommonStockMember2021-01-012021-03-310000865752us-gaap:AdditionalPaidInCapitalMember2021-01-012021-03-310000865752us-gaap:AccumulatedOtherComprehensiveIncomeMember2021-01-012021-03-3100008657522021-01-012021-03-310000865752us-gaap:AccumulatedTranslationAdjustmentMember2022-06-300000865752us-gaap:AccumulatedNetUnrealizedInvestmentGainLossMember2022-06-300000865752us-gaap:AccumulatedTranslationAdjustmentMember2021-12-310000865752us-gaap:AccumulatedNetUnrealizedInvestmentGainLossMember2021-12-310000865752us-gaap:AccumulatedTranslationAdjustmentMember2021-06-300000865752us-gaap:AccumulatedNetUnrealizedInvestmentGainLossMember2021-06-3000008657522021-06-300000865752us-gaap:AccumulatedTranslationAdjustmentMember2020-12-310000865752us-gaap:AccumulatedNetUnrealizedInvestmentGainLossMember2020-12-3100008657522020-12-310000865752us-gaap:FairValueInputsLevel2Member2022-06-300000865752us-gaap:EstimateOfFairValueFairValueDisclosureMember2022-06-300000865752us-gaap:FairValueInputsLevel2Member2021-12-310000865752us-gaap:EstimateOfFairValueFairValueDisclosureMember2021-12-310000865752mnst:TcccSubsidiariesMember2022-06-300000865752mnst:TcccSubsidiariesMember2021-12-310000865752srt:MinimumMemberus-gaap:PerformanceSharesMember2022-01-012022-06-300000865752srt:MaximumMemberus-gaap:PerformanceSharesMember2022-01-012022-06-300000865752us-gaap:PerformanceSharesMember2022-01-012022-06-3000008657522022-04-012022-04-300000865752srt:MaximumMember2022-01-012022-06-300000865752us-gaap:USTreasurySecuritiesMembermnst:InvestmentsMaturitiesWithin1YearMember2022-06-300000865752us-gaap:USTreasurySecuritiesMembermnst:InvestmentsMaturitiesAfter1YearThrough10YearsMember2022-06-300000865752us-gaap:USGovernmentAgenciesDebtSecuritiesMembermnst:InvestmentsMaturitiesWithin1YearMember2022-06-300000865752us-gaap:USGovernmentAgenciesDebtSecuritiesMembermnst:InvestmentsMaturitiesAfter1YearThrough10YearsMember2022-06-300000865752us-gaap:MunicipalBondsMembermnst:InvestmentsMaturitiesWithin1YearMember2022-06-300000865752us-gaap:MunicipalBondsMembermnst:InvestmentsMaturitiesAfter1YearThrough10YearsMember2022-06-300000865752us-gaap:CommercialPaperMembermnst:InvestmentsMaturitiesWithin1YearMember2022-06-300000865752us-gaap:CertificatesOfDepositMembermnst:InvestmentsMaturitiesWithin1YearMember2022-06-300000865752us-gaap:USTreasurySecuritiesMembermnst:InvestmentsMaturitiesWithin1YearMember2021-12-310000865752us-gaap:USTreasurySecuritiesMembermnst:InvestmentsMaturitiesAfter1YearThrough10YearsMember2021-12-310000865752us-gaap:USGovernmentAgenciesDebtSecuritiesMembermnst:InvestmentsMaturitiesWithin1YearMember2021-12-310000865752us-gaap:USGovernmentAgenciesDebtSecuritiesMembermnst:InvestmentsMaturitiesAfter1YearThrough10YearsMember2021-12-310000865752us-gaap:MunicipalBondsMembermnst:InvestmentsMaturitiesWithin1YearMember2021-12-310000865752us-gaap:CommercialPaperMembermnst:InvestmentsMaturitiesWithin1YearMember2021-12-310000865752us-gaap:CertificatesOfDepositMembermnst:InvestmentsMaturitiesWithin1YearMember2021-12-310000865752us-gaap:OperatingSegmentsMemberus-gaap:AllOtherSegmentsMember2022-06-300000865752us-gaap:OperatingSegmentsMembermnst:StrategicBrandsSegmentMember2022-06-300000865752us-gaap:OperatingSegmentsMembermnst:MonsterEnergyDrinksSegmentMember2022-06-300000865752us-gaap:OperatingSegmentsMembermnst:AlcoholBrandsSegmentMember2022-06-300000865752us-gaap:OperatingSegmentsMemberus-gaap:AllOtherSegmentsMember2021-12-310000865752us-gaap:OperatingSegmentsMembermnst:StrategicBrandsSegmentMember2021-12-310000865752us-gaap:OperatingSegmentsMembermnst:MonsterEnergyDrinksSegmentMember2021-12-3100008657522021-01-012021-12-310000865752us-gaap:EmployeeStockOptionMember2022-01-012022-06-300000865752mnst:RestrictedStockUnitsAndPerformanceShareUnitsMember2022-01-012022-06-300000865752mnst:OtherShareBasedAwardsMember2022-01-012022-06-300000865752us-gaap:EmployeeStockOptionMember2022-06-300000865752mnst:RestrictedStockUnitsAndPerformanceShareUnitsMember2022-06-300000865752mnst:OtherShareBasedAwardsMember2022-06-300000865752us-gaap:OperatingSegmentsMemberus-gaap:AllOtherSegmentsMember2022-04-012022-06-300000865752us-gaap:OperatingSegmentsMembermnst:StrategicBrandsSegmentMember2022-04-012022-06-300000865752us-gaap:OperatingSegmentsMembermnst:AlcoholBrandsSegmentMember2022-04-012022-06-300000865752us-gaap:CorporateNonSegmentMember2022-04-012022-06-300000865752us-gaap:OperatingSegmentsMemberus-gaap:AllOtherSegmentsMember2022-01-012022-06-300000865752us-gaap:OperatingSegmentsMembermnst:StrategicBrandsSegmentMember2022-01-012022-06-300000865752us-gaap:OperatingSegmentsMembermnst:MonsterEnergyDrinksSegmentMember2022-01-012022-06-300000865752us-gaap:OperatingSegmentsMembermnst:AlcoholBrandsSegmentMember2022-01-012022-06-300000865752us-gaap:CorporateNonSegmentMember2022-01-012022-06-300000865752us-gaap:OperatingSegmentsMemberus-gaap:AllOtherSegmentsMember2021-04-012021-06-300000865752us-gaap:OperatingSegmentsMembermnst:StrategicBrandsSegmentMember2021-04-012021-06-300000865752us-gaap:CorporateNonSegmentMember2021-04-012021-06-300000865752us-gaap:OperatingSegmentsMemberus-gaap:AllOtherSegmentsMember2021-01-012021-06-300000865752us-gaap:OperatingSegmentsMembermnst:StrategicBrandsSegmentMember2021-01-012021-06-300000865752us-gaap:OperatingSegmentsMembermnst:MonsterEnergyDrinksSegmentMember2021-01-012021-06-300000865752us-gaap:CorporateNonSegmentMember2021-01-012021-06-300000865752us-gaap:OperatingSegmentsMembermnst:MonsterEnergyDrinksSegmentMember2022-04-012022-06-3000008657522022-04-012022-06-300000865752us-gaap:OperatingSegmentsMembermnst:MonsterEnergyDrinksSegmentMember2021-04-012021-06-3000008657522021-04-012021-06-3000008657522021-01-012021-06-300000865752mnst:TcccSubsidiariesAndTcccRelatedPartiesMembermnst:MonsterEnergyDrinksSegmentMember2022-04-012022-06-300000865752mnst:TcccSubsidiariesAndTcccRelatedPartiesMembermnst:MonsterEnergyDrinksSegmentMember2022-01-012022-06-300000865752mnst:TcccSubsidiariesAndTcccRelatedPartiesMembermnst:MonsterEnergyDrinksSegmentMember2021-04-012021-06-300000865752mnst:TcccSubsidiariesAndTcccRelatedPartiesMembermnst:MonsterEnergyDrinksSegmentMember2021-01-012021-06-300000865752us-gaap:OperatingExpenseMembermnst:TcccRelatedPartiesAndTcccIndependentBottlersMember2022-04-012022-06-300000865752mnst:TcccSubsidiariesAndTcccRelatedPartiesMember2022-04-012022-06-300000865752us-gaap:OperatingExpenseMembermnst:TcccRelatedPartiesAndTcccIndependentBottlersMember2022-01-012022-06-300000865752mnst:TcccSubsidiariesAndTcccRelatedPartiesMember2022-01-012022-06-300000865752us-gaap:OperatingExpenseMembermnst:TcccRelatedPartiesAndTcccIndependentBottlersMember2021-04-012021-06-300000865752mnst:TcccSubsidiariesAndTcccRelatedPartiesMember2021-04-012021-06-300000865752us-gaap:OperatingExpenseMembermnst:TcccRelatedPartiesAndTcccIndependentBottlersMember2021-01-012021-06-300000865752mnst:TcccSubsidiariesAndTcccRelatedPartiesMember2021-01-012021-06-300000865752mnst:PrincipalOwnersMember2022-04-012022-06-300000865752mnst:PrincipalOwnersMember2022-01-012022-06-300000865752mnst:CanarchyCraftBreweryCollectiveLlcMember2022-02-170000865752mnst:CanarchyCraftBreweryCollectiveLlcMember2022-02-172022-02-170000865752mnst:CocaColaCompanyMember2021-01-012021-12-3100008657522022-06-3000008657522021-12-3100008657522022-07-2900008657522022-01-012022-06-30xbrli:sharesiso4217:USDmnst:planxbrli:puremnst:directoriso4217:USDxbrli:sharesmnst:segment

Table of Contents

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

Form 10-Q

Quarterly Report Pursuant to Section 13 or 15(d)

of the Securities Exchange Act of 1934

For the quarterly period ended June 30, 2022

Commission File Number 001-18761

MONSTER BEVERAGE CORPORATION

(Exact name of registrant as specified in its charter)

	Delaware	47-1809393
	(State or other jurisdiction of	(I.R.S. Employer
	incorporation or organization)	Identification No.)

1 Monster Way

Corona, California 92879

(Address of principal executive offices) (Zip code)

(951) 739 - 6200

(Registrant’s telephone number, including area code)

Securities registered pursuant to Section 12(b) of the Act:


Title of each class	Trading Symbol(s)	Name of each exchange on which registered
Common Stock	MNST	Nasdaq Global Select Market

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.

Yes X No__

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files).

Yes X No __

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and “emerging growth company” in Rule 12b-2 of the Exchange Act.

Large accelerated filer	☒	Accelerated filer	☐
Non-accelerated filer	☐	Smaller reporting company	☐
		Emerging growth company	☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).

Yes __ No X

The registrant had 526,885,495 shares of common stock, par value $0.005 per share, outstanding as of July 29, 2022.

Table of Contents

MONSTER BEVERAGE CORPORATION AND SUBSIDIARIES

JUNE 30, 2022

INDEX


Part I.	FINANCIAL INFORMATION	Page No.

Item 1.	Condensed Consolidated Financial Statements (Unaudited)

	Condensed Consolidated Balance Sheets as of June 30, 2022 and December 31, 2021	3

	Condensed Consolidated Statements of Income for the Three- and Six-Months Ended June 30, 2022 and 2021	4

	Condensed Consolidated Statements of Comprehensive Income for the Three- and Six-Months Ended June 30, 2022 and 2021	5

	Condensed Consolidated Statements of Stockholders’ Equity for the Three- and Six-Months Ended June 30, 2022 and 2021	6

	Condensed Consolidated Statements of Cash Flows for the Six-Months Ended June 30, 2022 and 2021	7

	Notes to Condensed Consolidated Financial Statements	9

Item 2.	Management’s Discussion and Analysis of Financial Condition and Results of Operations	34

Item 3.	Quantitative and Qualitative Disclosures About Market Risk	52

Item 4.	Controls and Procedures	52

Part II.	OTHER INFORMATION

Item 1.	Legal Proceedings	53

Item 1A.	Risk Factors	53

Item 2.	Unregistered Sales of Equity Securities and Use of Proceeds	53

Item 3.	Defaults Upon Senior Securities	54

Item 4.	Mine Safety Disclosures	54

Item 5.	Other Information	54

Item 6.	Exhibits	54

	Signatures	55

Table of Contents

PART I – FINANCIAL INFORMATION

ITEM 1. CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)

MONSTER BEVERAGE CORPORATION AND SUBSIDIARIES

CONDENSED CONSOLIDATED BALANCE SHEETS

AS OF JUNE 30, 2022 AND DECEMBER 31, 2021

(In Thousands, Except Par Value) (Unaudited)


	June 30,		December 31,
	2022		2021
ASSETS
CURRENT ASSETS:
Cash and cash equivalents	$	1,132,039	$	1,326,462
Short-term investments		1,337,792		1,749,727
Accounts receivable, net		1,175,587		896,658
Inventories		885,948		593,357
Prepaid expenses and other current assets		132,273		82,668
Prepaid income taxes		32,981		33,238
Total current assets		4,696,620		4,682,110

INVESTMENTS		64,119		99,419
PROPERTY AND EQUIPMENT, net		464,541		313,753
DEFERRED INCOME TAXES, net		203,287		225,221
GOODWILL		1,412,941		1,331,643
OTHER INTANGIBLE ASSETS, net		1,223,114		1,072,386
OTHER ASSETS		110,390		80,252
Total Assets	$	8,175,012	$	7,804,784

LIABILITIES AND STOCKHOLDERS’ EQUITY
CURRENT LIABILITIES:
Accounts payable	$	492,858	$	404,263
Accrued liabilities		209,154		210,964
Accrued promotional allowances		277,618		211,461
Deferred revenue		44,344		42,530
Accrued compensation		53,717		65,459
Income taxes payable		15,917		30,399
Total current liabilities		1,093,608		965,076

DEFERRED REVENUE		232,170		243,249

OTHER LIABILITIES		40,056		29,508

COMMITMENTS AND CONTINGENCIES (Note 12)

STOCKHOLDERS’ EQUITY:
Common stock - $0.005 par value; 1,250,000 shares authorized; 640,944 shares issued and 526,772 shares outstanding as of June 30, 2022; 640,043 shares issued and 529,323 shares outstanding as of December 31, 2021		3,205		3,200
Additional paid-in capital		4,707,569		4,652,620
Retained earnings		8,377,112		7,809,549
Accumulated other comprehensive loss		(152,957)		(69,165)
Common stock in treasury, at cost; 114,172 shares and 110,720 shares as of June 30, 2022 and December 31, 2021, respectively		(6,125,751)		(5,829,253)
Total stockholders’ equity		6,809,178		6,566,951
Total Liabilities and Stockholders’ Equity	$	8,175,012	$	7,804,784

See accompanying notes to condensed consolidated financial statements.

Table of Contents

MONSTER BEVERAGE CORPORATION AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF INCOME

FOR THE THREE- AND SIX- MONTHS ENDED JUNE 30, 2022 AND 2021

(In Thousands, Except Per Share Amounts) (Unaudited)


	Three-Months Ended				Six-Months Ended
	June 30,				June 30,
	2022		2021		2022		2021

NET SALES	$	1,655,260	$	1,461,934	$	3,173,833	$	2,705,751

COST OF SALES		875,399		625,096		1,617,306		1,153,976

GROSS PROFIT		779,861		836,838		1,556,527		1,551,775

OPERATING EXPENSES		406,910		310,863		784,088		611,652

OPERATING INCOME		372,951		525,975		772,439		940,123

INTEREST and OTHER (EXPENSE) INCOME, net		(6,781)		872		(14,080)		111

INCOME BEFORE PROVISION FOR INCOME TAXES		366,170		526,847		758,359		940,234

PROVISION FOR INCOME TAXES		92,810		123,085		190,796		221,278

NET INCOME	$	273,360	$	403,762	$	567,563	$	718,956

NET INCOME PER COMMON SHARE:
Basic	$	0.52	$	0.76	$	1.07	$	1.36
Diluted	$	0.51	$	0.75	$	1.06	$	1.34

WEIGHTED AVERAGE NUMBER OF SHARES OF COMMON STOCK AND COMMON STOCK EQUIVALENTS:
Basic		528,617		528,653		529,009		528,425
Diluted		534,811		535,557		535,209		535,324

See accompanying notes to condensed consolidated financial statements.

Table of Contents

MONSTER BEVERAGE CORPORATION AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME

FOR THE THREE- AND SIX- MONTHS ENDED JUNE 30, 2022 AND 2021

(In Thousands) (Unaudited)


	Three-Months Ended				Six-Months Ended
	June 30,				June 30,
	2022		2021		2022		2021
Net income, as reported	$	273,360	$	403,762	$	567,563	$	718,956
Other comprehensive income (loss):
Change in foreign currency translation adjustment		(79,707)		8,235		(78,628)		(19,696)
Available-for-sale investments:
Change in net unrealized (losses) gains		(1,105)		(183)		(5,164)		(160)
Reclassification adjustment for net gains included in net income		—		—		—		—
Net change in available-for-sale investments		(1,105)		(183)		(5,164)		(160)
Other comprehensive income (loss)		(80,812)		8,052		(83,792)		(19,856)
Comprehensive income	$	192,548	$	411,814	$	483,771	$	699,100

See accompanying notes to condensed consolidated financial statements.

Table of Contents

MONSTER BEVERAGE CORPORATION AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF STOCKHOLDERS’ EQUITY

FOR THE THREE- AND SIX-MONTHS ENDED JUNE 30, 2022 AND 2021

(In Thousands) (Unaudited)


								Accumulated
								Other					Total
	Common stock			Additional		Retained		Comprehensive		Treasury stock			Stockholders’
	Shares	Amount		Paid-in Capital		Earnings		(Loss) Income		Shares	Amount		Equity
Balance, December 31, 2021	640,043	$	3,200	$	4,652,620	$	7,809,549	$	(69,165)	(110,720)	$	(5,829,253)	$	6,566,951
Stock-based compensation	—		—		16,175		—		—	—		—		16,175
Exercise of stock options	485		3		4,507		—		—	—		—		4,510
Unrealized loss, net on available-for-sale securities	—		—		—		—		(4,059)	—		—		(4,059)
Repurchase of common stock	—		—		—		—		—	(166)		(12,187)		(12,187)
Foreign currency translation	—		—		—		—		1,079	—		—		1,079
Net income	—		—		—		294,203		—	—		—		294,203
Balance, March 31, 2022	640,528		3,203		4,673,302		8,103,752		(72,145)	(110,886)		(5,841,440)		6,866,672
Stock-based compensation	—		—		16,157		—		—	—		—		16,157
Exercise of stock options	416		2		18,110		—		—	—		—		18,112
Unrealized loss, net on available-for-sale securities	—		—		—		—		(1,105)	—		—		(1,105)
Repurchase of common stock	—		—		—		—		—	(3,286)		(284,311)		(284,311)
Foreign currency translation	—		—		—		—		(79,707)	—		—		(79,707)
Net income	—		—		—		273,360		—	—		—		273,360
Balance, June 30, 2022	640,944	$	3,205	$	4,707,569	$	8,377,112	$	(152,957)	(114,172)	$	(6,125,751)	$	6,809,178


								Accumulated
								Other					Total
	Common stock			Additional		Retained		Comprehensive		Treasury stock			Stockholders’
	Shares	Amount		Paid-in Capital		Earnings		(Loss) Income		Shares	Amount		Equity
Balance, December 31, 2020	638,662	$	3,193	$	4,537,982	$	6,432,074	$	3,034	(110,565)	$	(5,815,423)	$	5,160,860
Stock-based compensation	—		—		17,949		—		—	—		—		17,949
Exercise of stock options	492		3		6,758		—		—	—		—		6,761
Unrealized gain, net on available-for-sale securities	—		—		—		—		24	—		—		24
Repurchase of common stock	—		—		—		—		—	(150)		(13,419)		(13,419)
Foreign currency translation	—		—		—		—		(27,932)	—		—		(27,932)
Net income	—		—		—		315,194		—	—		—		315,194
Balance, March 31, 2021	639,154		3,196		4,562,689		6,747,268		(24,874)	(110,715)		(5,828,842)		5,459,437
Stock-based compensation	—		—		16,921		—		—	—		—		16,921
Exercise of stock options	422		2		17,723		—		—	—		—		17,725
Unrealized loss, net on available-for-sale securities	—		—		—		—		(183)	—		—		(183)
Repurchase of common stock	—		—		—		—		—	(4)		(399)		(399)
Foreign currency translation	—		—		—		—		8,235	—		—		8,235
Net income	—		—		—		403,762		—	—		—		403,762
Balance, June 30, 2021	639,576	$	3,198	$	4,597,333	$	7,151,030	$	(16,822)	(110,719)	$	(5,829,241)	$	5,905,498

See accompanying notes to condensed consolidated financial statements.

Table of Contents

MONSTER BEVERAGE CORPORATION AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

FOR THE SIX-MONTHS ENDED JUNE 30, 2022 AND 2021

(In Thousands) (Unaudited)


	Six-Months Ended
	June 30,
	2022		2021
CASH FLOWS FROM OPERATING ACTIVITIES:
Net income	$	567,563	$	718,956
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization		30,432		25,499
Non-cash lease expense		3,222		1,990
Gain on disposal of property and equipment		(69)		(822)
Stock-based compensation		32,609		35,691
Deferred income taxes		21,934		353
Effect on cash of changes in operating assets and liabilities net of acquisition:
Accounts receivable		(289,236)		(239,540)
Inventories		(299,076)		(52,541)
Prepaid expenses and other assets		(55,663)		(28,232)
Prepaid income taxes		(1,220)		2,452
Accounts payable		85,499		63,619
Accrued liabilities		(789)		29,883
Accrued promotional allowances		77,746		42,665
Accrued compensation		(15,311)		(10,782)
Income taxes payable		(14,666)		7,696
Other liabilities		(3,211)		621
Deferred revenue		(9,101)		(10,922)
Net cash provided by operating activities		130,663		586,586

CASH FLOWS FROM INVESTING ACTIVITIES:
Sales of available-for-sale investments		1,409,707		660,965
Purchases of available-for-sale investments		(964,267)		(795,467)
Acquisition of CANarchy, net of cash		(329,472)		—
Purchases of property and equipment		(99,446)		(15,522)
Proceeds from sale of property and equipment		372		1,024
Additions to intangibles		(9,894)		(9,926)
Increase in other assets		(12,738)		(21,236)
Net cash used in investing activities		(5,738)		(180,162)

CASH FLOWS FROM FINANCING ACTIVITIES:
Borrowings on debt		4,924		3,624
Issuance of common stock		22,622		24,486
Purchases of common stock held in treasury		(296,499)		(13,818)
Net cash (used in) provided by financing activities		(268,953)		14,292

Effect of exchange rate changes on cash and cash equivalents		(50,395)		(16,890)

NET (DECREASE) INCREASE IN CASH AND CASH EQUIVALENTS		(194,423)		403,826
CASH AND CASH EQUIVALENTS, beginning of period		1,326,462		1,180,413
CASH AND CASH EQUIVALENTS, end of period	$	1,132,039	$	1,584,239

SUPPLEMENTAL INFORMATION:
Cash paid during the period for:
Interest	$	227	$	52
Income taxes	$	209,513	$	215,803

See accompanying notes to condensed consolidated financial statements.

Table of Contents

MONSTER BEVERAGE CORPORATION AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

FOR THE SIX-MONTHS ENDED JUNE 30, 2022 AND 2021

(In Thousands) (Unaudited) (Continued)

SUPPLEMENTAL DISCLOSURE OF NON-CASH ITEMS

Included in accrued liabilities as of June 30, 2022 and 2021 were $3.4 million and $1.3 million, respectively, related to net additions to other intangible assets.

Included in accounts payable as of June 30, 2022 were available-for-sale short-term investment purchases of $3.4 million.

See accompanying notes to condensed consolidated financial statements.

Table of Contents

MONSTER BEVERAGE CORPORATION AND SUBSIDIARIES

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(Tabular Dollars in Thousands, Except Per Share Amounts) (Unaudited)

1.	BASIS OF PRESENTATION

Reference is made to the Notes to Consolidated Financial Statements, in Monster Beverage Corporation and Subsidiaries (the “Company”) Annual Report on Form 10-K for the year ended December 31, 2021 for a summary of significant accounting policies utilized by the Company and its consolidated subsidiaries and other disclosures, which should be read in conjunction with this Quarterly Report on Form 10-Q (“Form 10-Q”).

The Company’s condensed consolidated financial statements included in this Form 10-Q have been prepared in accordance with accounting principles generally accepted in the United States of America (“GAAP”) and Securities and Exchange Commission (“SEC”) rules and regulations applicable to interim financial reporting. They do not include all the information and footnote disclosures normally included in annual financial statements prepared in accordance with GAAP. The information set forth in these interim condensed consolidated financial statements for the three- and six-months ended June 30, 2022 and 2021, respectively, is unaudited and reflects all adjustments, which include only normal recurring adjustments and which in the opinion of management are necessary to make the interim condensed consolidated financial statements not misleading. Results of operations for periods covered by this report may not necessarily be indicative of results of operations for the full year.

The preparation of financial statements in conformity with GAAP necessarily requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting periods. Actual results could differ from these estimates.

Recent Accounting Pronouncements

There have been no changes in recently issued or adopted accounting pronouncements that would materially impact the Company from those disclosed in our Annual Report on Form 10-K for the fiscal year ended December 31, 2021.

2.	ACQUISITIONS

On February 17, 2022, the Company completed its acquisition of CANarchy Craft Brewery Collective LLC (“CANarchy”), a craft beer and hard seltzer company, for $330.4 million in cash, subject to adjustments (the “CANarchy Transaction”). The CANarchy Transaction facilitates the Company’s entry into the alcohol beverage sector and brings the Cigar City^TM family of brands including Jai Alai® IPA and Florida Man^TM IPA, the Oskar Blues ^TM family of brands including Dale’s Pale Ale® and Wild Basin^TM Hard Seltzers, the Deep Ellum^TM family of brands including Dallas Blonde® and Deep Ellum^TM IPA, the Perrin Brewing^TM family of brands including Black Ale, the Squatters® family of brands including Hop Rising® Double IPA and Juicy IPA, the Wasatch® family of brands including Apricot Hefeweizen, as well as certain other brands (collectively the “CANarchy Brands”) to the Company’s beverage portfolio. The transaction does not include CANarchy’s stand-alone restaurants. The Company’s organizational structure for its existing energy beverage business will remain unchanged. CANarchy will function independently, retaining its own organizational structure and team.

The Company accounted for the CANarchy Transaction in accordance with Financial Accounting Standards Board (“FASB”) Accounting Standards Codification (“ASC”) 805 “Business Combinations”.

Table of Contents

MONSTER BEVERAGE CORPORATION AND SUBSIDIARIES

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(Tabular Dollars in Thousands, Except Per Share Amounts) (Unaudited)

The following table summarizes the fair value allocations of the CANarchy Transaction:


	Identifiable
	Assets
	Acquired and
	Liabilities		Consideration
	Assumed		Transferred
Intangibles - trademarks (non-amortizing)	$	94,500	$	—
Intangibles - customer relationships (amortizing)		54,500		—
Intangibles - permits (non-amortizing)		6,000		—
Property and equipment, net		81,285		—
Inventory		18,300		—
Right-of -use assets		12,836		—
Operating lease liabilities		(12,836)		—
Working capital (excluding inventory)		(5,640)		—
Other		(770)		—
Goodwill		81,298		—
Cash		3,248		332,721
Total	$	332,721	$	332,721

The Company determined the fair values as follows:

●

Trademarks – relief-from-royalty method of the income approach

●

Customer relationships – distributor method of the income approach

●

Permits – with-and-without method of the income approach

●

Property and equipment – cost approach

●

Inventory – comparative sales method and replacement cost method

The book value of the working capital (excluding inventory) approximates fair value.

The Company has determined goodwill in accordance with ASC 805-30-30-1, “Business Combinations,” which requires the recognition of goodwill for the excess of the aggregate consideration over the net amounts of identifiable assets acquired and liabilities assumed as of the acquisition date.

For tax purposes, the CANarchy Transaction was recorded as an asset purchase. As such, the Company received a step-up in tax basis of the CANarchy assets, net, equal to the purchase price.

In accordance with Regulation S-X, pro forma unaudited condensed financial information for the CANarchy Transaction has not been provided as the impact of the transaction on the Company’s financial position, results of operations and liquidity was not material.

On May 5, 2022, the Company acquired certain real property and equipment in Norwalk, California for a purchase price of $62.5 million. The acquisition was treated as an asset acquisition for accounting purposes. The preliminary fair value allocations include $50.6 million for land, $10.0 million for building and $1.9 million for equipment. The Company intends to utilize the property as a manufacturing facility for certain of its products.

Table of Contents

MONSTER BEVERAGE CORPORATION AND SUBSIDIARIES

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(Tabular Dollars in Thousands, Except Per Share Amounts) (Unaudited)

3.	REVENUE RECOGNITION

The Company has four operating and reportable segments: (i) Monster Energy® Drinks segment (“Monster Energy® Drinks”), 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 (“Strategic Brands”), which is primarily comprised of the various energy drink brands acquired from The Coca-Cola Company (“TCCC”) in 2015 as well as the Company’s affordable energy brands, (iii) Alcohol Brands segment (“Alcohol Brands”), which is primarily comprised of the various craft beers and hard seltzers purchased as part of the CANarchy Transaction on February 17, 2022 and (iv) Other segment (“Other”), which is comprised of certain products sold by American Fruits and Flavors, LLC, a wholly-owned subsidiary of the Company, to independent third-party customers (the “AFF Third-Party Products”).

The Company’s Monster Energy® Drinks segment generates net operating revenues by selling ready-to-drink packaged energy drinks primarily to bottlers and full service beverage bottlers/distributors (“bottlers/distributors”). In some cases, the Company sells ready-to-drink packaged energy 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.

The Company’s Alcohol Brands segment primarily generates operating revenues by selling kegged and canned beer as well as hard seltzers primarily to distributors in the United States.

The majority of the Company’s revenue is recognized when it satisfies a single performance obligation by transferring control of its products to a customer. Control is generally transferred when the Company’s products are either shipped or delivered based on the terms contained within the underlying contracts or agreements. Certain of the Company’s bottlers/distributors may also perform a separate function as a co-packer on the Company’s behalf. In such cases, control of the Company’s products passes to such bottlers/distributors when they notify the Company that they have taken possession or transferred the relevant portion of the Company’s finished goods. The Company’s general payment terms are short-term in duration. The Company does not have significant financing components or payment terms. The Company did not have any material unsatisfied performance obligations as of June 30, 2022 and December 31, 2021.

The Company excludes from revenues all taxes assessed by a governmental authority that are imposed on the sale of its products and collected from customers.

Distribution expenses to transport the Company’s products, where applicable, and warehousing expense after manufacture are accounted for within operating expenses.

Promotional and other allowances (variable consideration) recorded as a reduction to net sales, primarily include consideration given to the Company’s bottlers/distributors or retail customers including, but not limited to the following:

●

discounts granted off list prices to support price promotions to end-consumers by retailers;

●

reimbursements given to the Company’s bottlers/distributors for agreed portions of their promotional spend with retailers, including slotting, shelf space allowances and other fees for both new and existing products;

●

the Company’s agreed share of fees given to bottlers/distributors and/or directly to retailers for advertising, in-store marketing and promotional activities;

●

the Company’s agreed share of slotting, shelf space allowances and other fees given directly to retailers, club stores and/or wholesalers;

Table of Contents

MONSTER BEVERAGE CORPORATION AND SUBSIDIARIES

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(Tabular Dollars in Thousands, Except Per Share Amounts) (Unaudited)

●

incentives given to the Company’s bottlers/distributors and/or retailers for achieving or exceeding certain predetermined sales goals;

●

discounted or free products;

●

contractual fees given to the Company’s bottlers/distributors related to sales made directly by the Company to certain customers that fall within the bottlers’/distributors’ sales territories; and

●

commissions to TCCC based on the Company’s sales to wholly-owned subsidiaries of TCCC (the “TCCC Subsidiaries”) and/or to TCCC bottlers/distributors accounted for under the equity method by TCCC (the “TCCC Related Parties”).

The Company’s promotional allowance programs with its bottlers/distributors and/or retailers are executed through separate agreements in the ordinary course of business. These agreements generally provide for one or more of the arrangements described above and are of varying durations, typically ranging from one week to one year. The Company’s promotional and other allowances are calculated based on various programs with bottlers/distributors and retail customers, and accruals are established at the time of initial product sale for the Company’s anticipated liabilities. These accruals are based on agreed upon terms as well as the Company’s historical experience with similar programs and require management’s judgment with respect to estimating consumer participation and/or bottler/distributor and retail customer performance levels. Differences between such estimated expenses and actual expenses for promotional and other allowance costs have historically been insignificant and are recognized in earnings in the period such differences are determined.

Amounts received pursuant to new and/or amended distribution agreements entered into with certain bottlers/distributors relating to the costs associated with terminating the Company’s prior distributors, are accounted for as deferred revenue and recognized as revenue ratably over the anticipated life of the respective distribution agreements, generally over 20 years.

The Company also enters into license agreements that generate revenues associated with third-party sales of non-beverage products bearing the Company’s trademarks including, but not limited to, clothing, hats, t-shirts, jackets, helmets and automotive wheels.

Management believes that adequate provision has been made for cash discounts, returns and spoilage based on the Company’s historical experience.

Table of Contents

MONSTER BEVERAGE CORPORATION AND SUBSIDIARIES

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(Tabular Dollars in Thousands, Except Per Share Amounts) (Unaudited)

Disaggregation of Revenue

The following tables disaggregate the Company’s revenue by geographical markets and reportable segments:


	Three-Months Ended June 30, 2022
							Latin
							America
	U.S. and						and
Net Sales	Canada		EMEA¹		Asia Pacific		Caribbean		Total
Monster Energy® Drinks	$	973,674	$	308,839	$	116,788	$	138,389	$	1,537,690
Strategic Brands		38,368		29,171		7,477		4,126		79,142
Alcohol Brands		32,447		—		—		—		32,447
Other		5,981		—		—		—		5,981
Total Net Sales	$	1,050,470	$	338,010	$	124,265	$	142,515	$	1,655,260


	Three-Months Ended June 30, 2021
							Latin
							America
	U.S. and						and
Net Sales	Canada		EMEA¹		Asia Pacific		Caribbean		Total
Monster Energy® Drinks	$	895,362	$	269,807	$	118,934	$	82,991	$	1,367,094
Strategic Brands		49,388		27,875		7,006		2,666		86,935
Alcohol Brands		—		—		—		—		—
Other		7,905		—		—		—		7,905
Total Net Sales	$	952,655	$	297,682	$	125,940	$	85,657	$	1,461,934

¹Europe, Middle East and Africa (“EMEA”)


	Six-Months Ended June 30, 2022
							Latin
							America
	U.S. and				Asia		and
Net Sales	Canada		EMEA¹		Pacific		Caribbean		Total
Monster Energy® Drinks	$	1,899,354	$	569,728	$	227,343	$	246,111	$	2,942,536
Strategic Brands		91,420		59,347		14,138		6,830		171,735
Alcohol Brands²		47,654		—		—		—		47,654
Other		11,908		—		—		—		11,908
Total Net Sales	$	2,050,336	$	629,075	$	241,481	$	252,941	$	3,173,833


	Six-Months Ended June 30, 2021
							Latin
							America
	U.S. and				Asia		and
Net Sales	Canada		EMEA¹		Pacific		Caribbean		Total
Monster Energy® Drinks	$	1,668,866	$	489,107	$	225,681	$	153,720	$	2,537,374
Strategic Brands		87,071		47,784		15,444		4,445		154,744
Alcohol Brands²		—		—		—		—		—
Other		13,633		—		—		—		13,633
Total Net Sales	$	1,769,570	$	536,891	$	241,125	$	158,165	$	2,705,751

¹Europe, Middle East and Africa (“EMEA”)

²Effectively from February 17, 2022 to June 30, 2022

Table of Contents

MONSTER BEVERAGE CORPORATION AND SUBSIDIARIES

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(Tabular Dollars in Thousands, Except Per Share Amounts) (Unaudited)

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 June 30, 2022, the Company had $276.5 million of deferred revenue, which is included in current and long-term deferred revenue in the Company’s condensed consolidated balance sheet. As of December 31, 2021, the Company had $285.8 million of deferred revenue, which is included in current and long-term deferred revenue in the Company’s condensed consolidated balance sheet. During the three-months ended June 30, 2022 and 2021, $10.1 million and $10.4 million, respectively, of deferred revenue was recognized in net sales. See Note 11. During the six-months ended June 30, 2022 and 2021, $20.1 million and $20.9 million, respectively, of deferred revenue was recognized in net sales. See Note 11.

LEASES

The Company leases identified assets comprising of real estate and equipment. Real estate leases consist primarily of office and warehouse space and equipment leases consist of vehicles and warehouse equipment. At the inception of a contract, the Company assesses whether the contract is, or contains, a lease. The Company’s assessment is based on: (1) whether the contract involves the use of a distinct identified asset, (2) whether the Company obtains the right to substantially all the economic benefit from the use of the asset throughout the term, and (3) whether the Company has the right to direct the use of the asset. At inception of a lease, the Company allocates the consideration in the contract to each lease and non-lease component based on the component’s relative stand-alone price to determine the lease payments. Lease and non-lease components are accounted for separately.

Leases are classified as either finance leases or operating leases based on criteria in ASC 842. The Company’s operating leases are comprised of real estate and warehouse equipment, and the Company’s finance leases are comprised of vehicles.

Right-of-use (“ROU”) assets and lease liabilities are recognized at the lease commencement date based on the present value of lease payments over the lease term. As the Company’s leases generally do not provide an implicit rate, the Company uses its incremental borrowing rate based on the estimated rate of interest for collateralized borrowing over a similar term of the lease payments at the commencement date. ROU assets also include any lease payments made and exclude lease incentives. Lease terms include options to extend or terminate the lease when it is reasonably certain that the Company will exercise that option.

Certain of the Company’s real estate leases contain variable lease payments, including payments based on an index or rate. Variable lease payments based on an index or rate are initially measured using the index or rate in effect at the lease commencement date. Additional payments based on the change in an index or rate, or payments based on a change in the Company’s portion of real estate taxes and insurance, are recorded as a period expense when incurred.

Lease expense for operating leases, consisting of lease payments, is recognized on a straight-line basis over the lease term and is included in operating expenses in the condensed consolidated statement of income. Lease expense for finance leases consists of the amortization of the ROU asset on a straight-line basis over the asset’s estimated useful life and is included in operating expenses in the condensed consolidated statement of income. Interest expense on finance leases is calculated using the amortized cost basis and is included in interest and other (expense) income, net in the condensed consolidated statement of income.

The Company’s leases have remaining lease terms of less than one year to 12 years, some of which include options to extend the leases for up to five years, and some of which include options to terminate the leases within one year. The Company has elected not to recognize ROU assets and lease liabilities for short-term operating leases that have a term of 12 months or less.

Table of Contents

MONSTER BEVERAGE CORPORATION AND SUBSIDIARIES

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(Tabular Dollars in Thousands, Except Per Share Amounts) (Unaudited)

The components of lease cost were comprised of the following:


	Three-Months		Three-Months		Six-Months		Six-Months
	Ended June 30,		Ended June 30,		Ended June 30,		Ended June 30,
	2022		2021		2022		2021
Operating lease cost	$	2,238	$	1,114	$	3,932	$	2,245

Short-term lease cost		939		1,182		1,869		2,135

Variable lease cost		195		185		378		347

Finance leases:
Amortization of ROU assets		148		122		275		256
Interest on lease liabilities		7		5		10		9
Finance lease cost		155		127		285		265

Total lease cost	$	3,527	$	2,608	$	6,464	$	4,992

Supplemental cash flow information for the following periods:


	Six-Months		Six-Months
	Ended June 30,		Ended June 30,
	2022		2021
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash outflows from operating leases	$	3,682	$	2,008
Operating cash outflows from finance leases		10		9
Financing cash outflows from finance leases		1,179		1,297

ROU assets obtained in exchange for lease obligations:
Finance leases		1,561		2,238
Operating leases		18,339		166

ROU assets for operating and finance leases recognized in the Company’s condensed consolidated balance sheets were comprised of the following at:


	June 30, 2022
	Real Estate		Equipment		Total		Balance Sheet Location
Operating leases	$	36,965	$	479	$	37,444	Other Assets
Finance leases		—		2,204		2,204	Property and Equipment, net


	December 31, 2021
	Real Estate		Equipment		Total		Balance Sheet Location
Operating leases	$	22,518	$	639	$	23,157	Other Assets
Finance leases		—		2,646		2,646	Property and Equipment, net

Table of Contents

MONSTER BEVERAGE CORPORATION AND SUBSIDIARIES

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(Tabular Dollars in Thousands, Except Per Share Amounts) (Unaudited)

Operating and finance lease liabilities recognized in the Company’s condensed consolidated balance sheets were as follows at:


	June 30, 2022
	Operating Leases		Finance Leases
Accrued liabilities	$	6,966	$	1,326
Other liabilities		29,601		56
Total	$	36,567	$	1,382


	December 31, 2021
	Operating Leases		Finance Leases
Accrued liabilities	$	3,990	$	960
Other liabilities		17,389		41
Total	$	21,379	$	1,001

The weighted-average remaining lease terms and weighted-average discount rates for operating and finance leases at June 30, 2022 and December 31, 2021 were as follows:


	June 30, 2022
	Operating Leases		Finance Leases
Weighted-average remaining lease term (years)	7.2		0.9
Weighted-average discount rate	3.3	%	2.4	%


	December 31, 2021
	Operating Leases	Finance Leases
Weighted-average remaining lease term (years)	8.1	0.7

Market Data

News

Tools

Markets

Discover

MNST Monster Beverage Corporation

Trending Now

Toplists

Market Data

News

Tools

Markets

Discover

MNST Monster Beverage Corporation