SEGMENT INFORMATION

12 Months Ended

Dec. 31, 2011

SEGMENT INFORMATION

SEGMENT INFORMATION

16.SEGMENT INFORMATION

The Company has two reportable segments, namely Direct Store Delivery (“DSD”), whose principal products comprise energy drinks, and Warehouse (“Warehouse”), whose principal products comprise juice based and soda beverages. The DSD segment develops, markets and sells products primarily through an exclusive distributor network, whereas the Warehouse segment develops, markets and sells products primarily direct to retailers. Corporate and unallocated amounts that do not relate to DSD or Warehouse segments specifically have been allocated to “Corporate & Unallocated.”

The net revenues derived from DSD and Warehouse segments and other financial information related thereto for the years ended December 31, 2011, 2010 and 2009 are as follows:

	Year Ended December 31, 2011
	DSD		Warehouse		Corporate and Unallocated		Total
Net sales	$	1,608,326	$	94,904	$	-	$	1,703,230
Contribution margin	543,210		4,291		-		547,501
Corporate & unallocated expenses	-		-		(91,078)		(91,078)
Operating income							456,423
Interest and other income, net	(12)		(1)		860		847
Income before provision for income taxes							457,270
Depreciation & amortization	12,684		87		4,261		17,032
Trademark amortization	-		44		8		52

	Year Ended December 31, 2010
	DSD		Warehouse		Corporate and Unallocated		Total
Net sales	$	1,212,645	$	91,297	$	-	$	1,303,942
Contribution margin	436,742		(777)		-		435,965
Corporate & unallocated expenses	-		-		(88,151)		(88,151)
Operating income							347,814
Interest and other income, net	(51)		-		1,539		1,488
Income before provision for income taxes							349,302
Depreciation & amortization	6,933		55		4,740		11,728
Trademark amortization	-		42		6		48

	Year Ended December 31, 2009
	DSD		Warehouse		Corporate and Unallocated		Total
Net sales	$	1,045,104	$	98,195	$	-	$	1,143,299
Contribution margin	391,712		3,643		-		395,355
Corporate & unallocated expenses	-		-		(58,046)		(58,046)
Operating income							337,309
Interest and other income, net	(3,682)		-		2,068		(1,614)
Income before provision for income taxes							335,695
Depreciation & amortization	3,944		31		1,864		5,839
Trademark amortization	-		44		24		68

During the first fiscal quarter of 2010, the Company reclassified the Rumba®, Samba and Tango brand energy juices (now discontinued), Lost® Energy™ brand energy drinks (now discontinued) and Vidration® vitamin enhanced water, which were previously reported in the DSD segment, to the Warehouse segment and recast segment information for the 2009 reporting period. The reclassification resulted in an increase in net sales of the Warehouse segment of $6.1 million and a decrease in net sales of the DSD segment of $6.1 million for the year ended December 31, 2009, from amounts previously reported. The reclassification also resulted in a decrease in contribution margin of the Warehouse segment of $2.4 million and an increase in contribution margin of the DSD segment of $2.4 million for the year ended December 31, 2009, from amounts previously reported.

Revenue is derived from sales to external customers.  Operating expenses that pertain to each segment are allocated to the appropriate segment.

Corporate and unallocated expenses were $91.1 million for year ended December 31, 2011 and included $55.8 million of payroll costs, of which $19.4 million was attributable to stock-based compensation expense (see Note 12, “Stock-Based Compensation”), and $17.8 million was attributable to professional service expenses, including accounting and legal costs, $4.1 million of depreciation and $13.4 million of other operating expenses. Corporate and unallocated expenses were $88.2 million for year ended December 31, 2010 and included $51.2 million of payroll costs, of which $16.9 million was attributable to stock-based compensation expense (see Note 12, “Stock-Based Compensation”), and $20.7 million was attributable to professional service expenses, including accounting and legal costs, $4.7 million of depreciation, $1.7 million of bad debt expense and $10.0 million of other operating expenses. Corporate and unallocated expenses were $58.0 million for year ended December 31, 2009 and included $38.0 million of payroll costs, of which $14.0 million was attributable to stock-based compensation expense (see Note 12, “Stock-Based Compensation”), $7.9 million was attributable to professional service expenses, including accounting and legal costs and $12.1 million to other operating expenses.

CCR, a customer of the DSD segment, accounted for approximately 29% of the Company’s net sales for the year ended December 31, 2011. CCE, which included their operations in the U.S. for the relevant periods (see Note 1), a customer of the DSD segment, accounted for approximately 28% and 27% of the Company’s net sales for the years ended December 31, 2010 and 2009, respectively.

Net sales to customers outside the United States amounted to $300.9 million, $191.3 million and $135.7 million for the years ended December 31, 2011, 2010 and 2009, respectively.  Such sales were approximately 17.7%, 14.7% and 11.9% of net sales for the years ended December 31, 2011, 2010 and 2009, respectively.

The Company’s net sales by product line for years ended December 31, 2011, 2010 and 2009, respectively, were as follows:

Product Line	2011		2010		2009
Energy drinks	$	1,563,331	$	1,178,071	$	1,038,572
Non-carbonated (primarily juice based beverages)	94,398		80,537		59,207
Carbonated (primarily soda beverages)	32,467		32,906		32,538
Other	13,034		12,428		12,982
	$	1,703,230	$	1,303,942	$	1,143,299