RELATED PARTY TRANSACTIONS

6 Months Ended

Jun. 30, 2016

RELATED PARTY TRANSACTIONS

RELATED PARTY TRANSACTIONS

18.RELATED PARTY TRANSACTIONS

As a result of the TCCC Transaction, TCCC controls more than 10% of the voting interests of the Company.  TCCC, through the TCCC Subsidiaries and through certain of its affiliated companies (the “TCCC Affiliates”) purchases and distributes certain of the Company’s products both domestically and in certain international territories.  The Company also pays TCCC a commission based on certain sales within the TCCC bottling network.

TCCC commissions, based on sales to the TCCC Affiliates for the three-months ended June 30, 2016 and 2015, were $8.3 million and $1.8 million respectively. TCCC commissions, based on sales to the TCCC Affiliates for the six-months ended June 30, 2016 and 2015, were $10.9 million and $1.8 million, respectively.

TCCC commissions, based on sales to the TCCC Subsidiaries, are accounted for as a reduction to revenue and are reported in net sales to the TCCC Subsidiaries. Net sales to the TCCC Subsidiaries for the three-months ended June 30, 2016 and 2015 were $344.0 million and $311.0 million, respectively. Net sales to the TCCC Subsidiaries for the six-months ended June 30, 2016 and 2015 were $659.2 million and $529.9 million, respectively.

The Company also purchases concentrates from TCCC which are then sold to both the TCCC Affiliates and the TCCC Subsidiaries. Concentrate purchases from TCCC were $8.0 million and $1.1 million for the three-months ended June 30, 2016 and 2015, respectively. Concentrate purchases from TCCC were $14.7 million and $1.1 million for the six-months ended June 30, 2016 and 2015, respectively.

A certain TCCC Subsidiary also contract manufactures certain of the Company’s Monster Energy® brand energy drinks. Contract manufacturing expenses were $2.2 million and $1.1 million for the three-months ended June 30, 2016 and 2015, respectively. Contract manufacturing expenses were $3.8 million and $3.4 million for the six-months ended June 30, 2016 and 2015, respectively.

Accounts receivable, accounts payable and accrued promotional allowances related to the TCCC Subsidiaries are as follows at:

	June 30, 2016		December 31, 2015
Accounts receivable, net	$	197,764	$	172,201
Accounts payable	$	63,337	$	58,579
Accrued promotional allowances	$	39,037	$	27,544

Two directors and officers of the Company and their families are principal owners of a company that provides promotional materials to the Company. Expenses incurred with such company in connection with promotional materials purchased during the three-months ended June 30, 2016 and 2015 were $0.2 million and $0.3 million, respectively. Expenses incurred with such company in connection with promotional materials purchased during the six-months ended June 30, 2016 and 2015 were $0.3 million and $1.2 million, respectively.