SEGMENT INFORMATION

3 Months Ended

Mar. 31, 2013

SEGMENT INFORMATION

SEGMENT INFORMATION

15. 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 have been allocated to “Corporate & Unallocated.”

The net revenues derived from the DSD and Warehouse segments and other financial information related thereto are as follows:

	Three-Months Ended March 31, 2013
	DSD			Warehouse			Corporate and Unallocated			Total
Net sales	$	460,175		$	24,048		$	-		$	484,223
Contribution margin	138,974			382			-			139,356
Corporate and unallocated expenses	-			-			(32,050		)	(32,050		)
Operating income										107,306
Other income (expense)	188			-			(2,090		)	(1,902		)
Income before provision for income taxes										105,404
Depreciation and amortization	(4,421		)	(47		)	(580		)	(5,048		)
Trademark amortization	-			(11		)	(1		)	(12		)
	Three-Months Ended March 31, 2012
	DSD			Warehouse			Corporate and Unallocated			Total
Net sales	$	431,182		$	23,423		$	-		$	454,605
Contribution margin	149,092			2,157			-			151,249
Corporate and unallocated expenses	-			-			(24,964		)	(24,964		)
Operating income										126,285
Other income (expense)	100			-			246			346
Income before provision for income taxes										126,631
Depreciation and amortization	(3,783		)	(29		)	(1,144		)	(4,956		)
Trademark amortization	-			(11		)	(1		)	(12		)

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 $32.0 million for the three-months ended March 31, 2013 and included $19.4 million of payroll costs, of which $7.0 million was attributable to stock-based compensation expense (see Note 12, “Stock-Based Compensation”), $7.6 million attributable to professional service expenses, including accounting and legal costs and $5.0 million of other operating expenses.  Corporate and unallocated expenses were $25.0 million for the three-months ended March 31, 2012 and included $17.7 million of payroll costs, of which $6.6 million was attributable to stock-based compensation expense (see Note 12, “Stock-Based Compensation”), $4.7 million attributable to professional service expenses, including accounting and legal costs, and $2.6 million of other operating expenses.

Coca-Cola Refreshments USA Inc. (“CCR”), a customer of the DSD segment, accounted for approximately 30% of the Company’s net sales for both the three-months ended March 31, 2013 and 2012.

Net sales to customers outside the United States amounted to $106.3 million and $79.2 million for the three-months ended March 31, 2013 and 2012, respectively.

The Company’s net sales by product line were as follows:

	Three-Months Ended
	March 31,
Product Line	2013		2012
Energy drinks	$	446,026	$	418,912
Non-carbonated (primarily juice based beverages and Peace Tea® iced teas)	27,972		24,252
Carbonated (primarily soda beverages)	6,401		7,661
Other	3,824		3,780
	$	484,223	$	454,605