SEGMENT INFORMATION

12 Months Ended

Dec. 31, 2013

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.” No asset information has been provided for the Company’s reportable segments as management does not measure or allocate assets on a segment basis.

The net revenues derived from DSD and Warehouse segments and other financial information related thereto for the years ended December 31, 2013, 2012 and 2011 are as follows:

	Year Ended December 31, 2013
	DSD			Warehouse			Corporate and Unallocated			Total
Net sales	$	2,147,355		$	99,073		$	-		$	2,246,428
Contribution margin	726,826			(1,652		)	-			725,174
Corporate & unallocated expenses	-			-			(152,258		)	(152,258		)
Operating income										572,916
Interest and other income, net	755			(2		)	(9,775		)	(9,022		)
Income before provision for income taxes										563,894
Depreciation & amortization	(19,023		)	(244		)	(3,446		)	(22,713		)
Trademark amortization	-			(44		)	(5		)	(49		)

	Year Ended December 31, 2012
	DSD			Warehouse			Corporate and Unallocated			Total
Net sales	$	1,966,481		$	94,221		$	-		$	2,060,702
Contribution margin	660,607			3,496			-			664,103
Corporate & unallocated expenses	-			-			(113,480		)	(113,480		)
Operating income										550,623
Interest and other income, net	494			(2		)	(1,961		)	(1,469		)
Income before provision for income taxes										549,154
Depreciation & amortization	(15,660		)	(139		)	(4,714		)	(20,513		)
Trademark amortization	-			(44		)	(5		)	(49		)

	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		)

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 $152.3 million for the year ended December 31, 2013 and included $82.5 million of payroll costs, of which $28.8 million was attributable to stock-based compensation expense (see Note 12, “Stock-Based Compensation”), and $38.7 million was attributable to professional service expenses, including accounting and legal costs, and $31.1 million of other operating expenses. Corporate and unallocated expenses were $113.5 million for the year ended December 31, 2012 and included $73.0 million of payroll costs, of which $28.4 million was attributable to stock-based compensation expense (see Note 12, “Stock-Based Compensation”), and $19.7 million was attributable to professional service expenses, including accounting and legal costs, $4.4 million of depreciation and $16.4 million of other operating expenses. Corporate and unallocated expenses were $91.1 million for the 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.

CCR, a customer of the DSD segment, accounted for 29%, 28% and 29% of the Company’s net sales for the years ended December 31, 2013, 2012 and 2011, respectively.

Net sales to customers outside the United States amounted to $467.2 million, $415.8 million and $300.9 million for the years ended December 31, 2013, 2012 and 2011, respectively.  Such sales were approximately 20.8%, 20.2% and 17.7% of net sales for the years ended December 31, 2013, 2012 and 2011, respectively.

The Company’s net sales by product line for years ended December 31, 2013, 2012 and 2011, respectively, were as follows:

Product Line	2013		2012		2011
Energy drinks	$	2,082,238	$	1,906,236	$	1,563,331
Non-carbonated (primarily juice based beverages)	120,145		110,217		94,398
Carbonated (primarily soda beverages)	29,245		31,044		32,467
Other	14,800		13,205		13,034
	$	2,246,428	$	2,060,702	$	1,703,230