ACQUISITIONS AND DIVESTITURES (Tables)

12 Months Ended

Dec. 31, 2015

ACQUISITIONS AND DIVESTITURES

Summary of amounts in the escrow fund in excess of the applicable amounts

Percentage Transitioned	Escrow Release
40%	Amounts in excess of $375 million
50%	Amounts in excess of $312.5 million
60%	Amounts in excess of $250 million
70%	Amounts in excess of $187.5 million
80%	Amounts in excess of $125 million
90%	Amounts in excess of $62.5 million
95%	All remaining amounts

Summary of TCCC Transaction consideration allocation

The following table summarizes the final TCCC Transaction consideration allocation as of December 31, 2015:

	Identifiable Assets Acquired and Liabilities Assumed		Consideration Transferred
Equity issued to TCCC for cash (22.2 million shares issued)	$	-	$	1,647,333
Equity issued to TCCC for KO Energy (11.8 million shares issued)	-		1,521,802
KO Energy intangibles - trademarks (non-amortizing)	325,500		-
KO Energy intangibles - customer relationships (amortizing)	35,000		-
KO Energy intangibles - other (non-amortizing)	13,700		-
KO Energy inventories	6,144		-
KO Energy accounts payable	(2,758)		-
Goodwill	1,279,715		-
Deferred tax liability	(135,499)		-
New and amended U.S. distribution rights transferred to TCCC’s distribution network	-		304,658
Monster Non-Energy business transferred to TCCC	-		198,009
Cash and escrow receivable	2,150,000		-
Total	$	3,671,802	$	3,671,802

Schedule of pro forma condensed combined financial information

	Year Ended December 31, 2015
				Pro Forma Adjustments
	Monster Beverage Corporation as reported¹	KO Energy²		Disposal of Monster Non- Energy³	Other	Pro Forma Combined
Net sales	$  2,722,564	$  138,127		$    (60,778)	$    8,887	$ 2,808,800
Net income	546,733	100,575	4	(101,618)	(30,390)	515,300
	Year Ended December 31, 2014
				Pro Forma Adjustments
	Monster Beverage Corporation as reported	KO Energy		Disposal of Monster Non-Energy	Other	Pro Forma Combined
Net sales	$  2,464,867	$  342,432		$   (150,374)	$  19,900	$ 2,676,825
Net income	483,185	218,456	4	(4,647)	(95,306)	601,688
	Year Ended December 31, 2013
				Pro Forma Adjustments
	Monster Beverage Corporation as reported	KO Energy		Disposal of Monster Non- Energy	Other	Pro Forma Combined
Net sales	$  2,246,428	$  330,076		$   (152,041)	$  19,900	$ 2,444,363
Net income	338,661	183,763	4	1,922	(85,551)	438,795

¹Includes net sales of $143.3 million and net income of $55.2 million (tax affected) related to the acquired KO Energy assets since the date of acquisition, June 12, 2015.

²Includes results through June 12, 2015, the date the TCCC Transaction was finalized. Net income for KO Energy includes only net revenues and direct operating expenses, rather than full “carve-out” financial statements, because such financial information would not be meaningful given that it is not possible to provide a meaningful allocation of business unit and corporate costs, interest or tax in respect of KO Energy.

³Includes results through June 12, 2015. Net income includes gain recognized on the sale of Monster Non-Energy of $161.5 million.

4The $100.6 million, $218.5 million and $183.8 million of net income for KO Energy for the years ended December 31, 2015, 2014 and 2013, respectively, are presented before tax. The associated estimated provision for income taxes is included in the “Other” category.

Schedule of other pro-forma adjustments

	Year Ended December 31, 2015¹		Year Ended December 31, 2014		Year Ended December 31, 2013
Net sales:
Amortization of deferred revenue	$	8,887	$	19,900	$	19,900
Net income:
Amortization of deferred revenue	$	8,887	$	19,900	$	19,900
To record sales commissions	(15,470)		(38,352)		(36,969)
To record amortization of definite lived KO Energy intangibles	(3,126)		(7,000)		(7,000)
To eliminate TCCC Transaction expenses	15,495		4,824		-
Estimated provision for income taxes on pro forma adjustments	2,545		9,428		9,267
Estimated provision for income taxes on KO Energy income	(38,721)		(84,106)		(70,749)
Total	$	(30,390)	$	(95,306)	$	(85,551)

¹Includes amortization of deferred revenue, sales commissions and amortization of intangibles through June 12, 2015, the date the TCCC Transaction was consummated.