10-Q

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

Form 10-Q

Quarterly Report Pursuant to Section 13 or 15(d)

of the Securities Exchange Act of 1934

For the quarterly period ended June 30, 2024 Commission File Number 001-18761

MONSTER BEVERAGE CORPORATION

(Exact name of registrant as specified in its charter)

Delaware	47-1809393
(State or other jurisdiction of	(I.R.S. Employer
incorporation or organization)	Identification No.)

1 Monster Way

Corona, California 92879

(Address of principal executive offices) (Zip code)

(951) 739 - 6200

(Registrant’s telephone number, including area code)

Securities registered pursuant to Section 12(b) of the Act:

Title of each class	Trading Symbol(s)	Name of each exchange on which registered
Common Stock	MNST	Nasdaq Global Select Market

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.

Yes  X    No __

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files).

Yes  X    No __

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and “emerging growth company” in Rule 12b-2 of the Exchange Act.

Large accelerated filer ☒	Accelerated filer ☐
Non-accelerated filer ☐	Smaller reporting company ☐
	Emerging growth company ☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).

Yes __    No X

The registrant had 979,543,967 shares of common stock, par value $0.005 per share, outstanding as of July 31, 2024.

MONSTER BEVERAGE CORPORATION AND SUBSIDIARIES

JUNE 30, 2024

INDEX

Part I.	FINANCIAL INFORMATION	Page No.
Item 1.	Condensed Consolidated Financial Statements (Unaudited)
	Condensed Consolidated Balance Sheets as of June 30, 2024 and December 31, 2023	3
	Condensed Consolidated Statements of Income for the Three-and Six-Months Ended June 30, 2024 and 2023	4
	Condensed Consolidated Statements of Comprehensive Income for the Three-and Six-Months Ended June 30, 2024 and 2023	5
	Condensed Consolidated Statements of Stockholders’ Equity for the Three-and Six-Months Ended June 30, 2024 and 2023	6
	Condensed Consolidated Statements of Cash Flows for the Six-Months Ended June 30, 2024 and 2023	7
	Notes to Condensed Consolidated Financial Statements	9
Item 2.	Management’s Discussion and Analysis of Financial Condition and Results of Operations	32
Item 3.	Quantitative and Qualitative Disclosures About Market Risk	50
Item 4.	Controls and Procedures	50
Part II.	OTHER INFORMATION
Item 1.	Legal Proceedings	51
Item 1A.	Risk Factors	51
Item 2.	Unregistered Sales of Equity Securities and Use of Proceeds	51
Item 3.	Defaults Upon Senior Securities	52
Item 4.	Mine Safety Disclosures	52
Item 5.	Other Information	52
Item 6.	Exhibits	53
	Signatures	54

2

PART I – FINANCIAL INFORMATION

ITEM 1. CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)

MONSTER BEVERAGE CORPORATION AND SUBSIDIARIES

CONDENSED CONSOLIDATED BALANCE SHEETS

AS OF JUNE 30, 2024 AND DECEMBER 31, 2023

(In Thousands, Except Par Value) (Unaudited)

	June 30,		December 31,
	2024		2023
ASSETS
CURRENT ASSETS:
Cash and cash equivalents	$	1,564,734	$	2,297,675
Short-term investments		—		955,605
Accounts receivable, net		1,362,398		1,193,964
Inventories		834,404		971,406
Prepaid expenses and other current assets		129,303		116,195
Prepaid income taxes		63,458		54,151
Total current assets		3,954,297		5,588,996
INVESTMENTS		—		76,431
PROPERTY AND EQUIPMENT, net		960,962		890,796
DEFERRED INCOME TAXES, net		187,269		175,003
GOODWILL		1,417,941		1,417,941
OTHER INTANGIBLE ASSETS, net		1,433,326		1,427,139
OTHER ASSETS		107,109		110,216
Total Assets	$	8,060,904	$	9,686,522
LIABILITIES AND STOCKHOLDERS’ EQUITY
CURRENT LIABILITIES:
Accounts payable	$	511,137	$	564,379
Accrued liabilities		213,905		183,988
Accrued promotional allowances		319,757		269,061
Deferred revenue		44,377		41,914
Accrued compensation		60,357		87,392
Income taxes payable		10,990		14,955
Total current liabilities		1,160,523		1,161,689
DEFERRED REVENUE		192,354		204,251
DEFERRED INCOME TAXES		28,896		—
OTHER LIABILITIES		64,068		91,838
LONG-TERM DEBT		748,740		—
COMMITMENTS AND CONTINGENCIES (Note 12)
STOCKHOLDERS’ EQUITY:
Common stock - $0.005 par value; 5,000,000 shares authorized; 1,125,330 shares issued and 983,380 shares outstanding as of June 30, 2024; 1,122,592 shares issued and 1,041,571 shares outstanding as of December 31, 2023		5,627		5,613
Additional paid-in capital		5,068,291		4,975,115
Retained earnings		6,807,154		5,939,736
Accumulated other comprehensive loss		(182,304)		(125,337)
Common stock in treasury, at cost; 141,950 shares and 81,021 shares as of June 30, 2024 and December 31, 2023, respectively		(5,832,445)		(2,566,383)
Total stockholders’ equity		5,866,323		8,228,744
Total Liabilities and Stockholders’ Equity	$	8,060,904	$	9,686,522

See accompanying notes to condensed consolidated financial statements.

3

MONSTER BEVERAGE CORPORATION AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF INCOME

FOR THE THREE- AND SIX-MONTHS ENDED JUNE 30, 2024 AND 2023

(In Thousands, Except Per Share Amounts) (Unaudited)

	Three-Months Ended				Six-Months Ended
	June 30,				June 30,
	2024		2023		2024		2023
NET SALES	$	1,900,597	$	1,854,961	$	3,799,695	$	3,553,891
COST OF SALES		881,091		880,739		1,753,061		1,681,820
GROSS PROFIT		1,019,506		974,222		2,046,634		1,872,071
OPERATING EXPENSES		492,343		450,417		977,480		863,201
OPERATING INCOME		527,163		523,805		1,069,154		1,008,870
INTEREST and OTHER INCOME, net		24,376		15,159		60,131		27,653
INCOME BEFORE PROVISION FOR INCOME TAXES		551,539		538,964		1,129,285		1,036,523
PROVISION FOR INCOME TAXES		126,170		125,093		261,867		225,208
NET INCOME	$	425,369	$	413,871	$	867,418	$	811,315
NET INCOME PER COMMON SHARE:
Basic	$	0.41	$	0.40	$	0.84	$	0.78
Diluted	$	0.41	$	0.39	$	0.83	$	0.77
WEIGHTED AVERAGE NUMBER OF SHARES OF COMMON STOCK AND COMMON STOCK EQUIVALENTS:
Basic		1,029,268		1,047,065		1,035,175		1,045,993
Diluted		1,037,378		1,060,093		1,044,363		1,059,667

See accompanying notes to condensed consolidated financial statements.

4

MONSTER BEVERAGE CORPORATION AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME

FOR THE THREE- AND SIX-MONTHS ENDED JUNE 30, 2024 AND 2023

(In Thousands) (Unaudited)

	Three-Months Ended				Six-Months Ended
	June 30,				June 30,
	2024		2023		2024		2023
Net income, as reported	$	425,369	$	413,871	$	867,418	$	811,315
Other comprehensive income (loss), net of tax:
Change in foreign currency translation adjustment		(31,104)		(5,775)		(61,799)		2,206
Change in net unrealized gain (loss) on available-for-sale investments		535		(773)		758		2,408
Change in net gain (loss) on commodity derivatives		6,205		(1,266)		4,074		(1,266)
Other comprehensive income (loss)		(24,364)		(7,814)		(56,967)		3,348
Comprehensive income	$	401,005	$	406,057	$	810,451	$	814,663

See accompanying notes to condensed consolidated financial statements.

5

MONSTER BEVERAGE CORPORATION AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF STOCKHOLDERS’ EQUITY

FOR THE THREE- AND SIX-MONTHS ENDED JUNE 30, 2024 AND 2023

(In Thousands) (Unaudited)

								Accumulated Other					Total
	Common stock			Additional		Retained		Comprehensive (Loss)		Treasury stock			Stockholders’
	Shares	Amount		Paid-in Capital		Earnings		Income		Shares	Amount		Equity
Balance, December 31, 2023	1,122,592	$	5,613	$	4,975,115	$	5,939,736	$	(125,337)	(81,021)	$	(2,566,383)	$	8,228,744
Stock-based compensation	—		—		21,452		—		—	—		—		21,452
Stock options/awards	2,278		11		38,381		—		—	—		—		38,392
Unrealized gain (loss), net on available-for-sale securities	—		—		—		—		223	—		—		223
Repurchase of common stock	—		—		—		—		—	(2,151)		(120,245)		(120,245)
Foreign currency translation	—		—		—		—		(30,695)	—		—		(30,695)
Net gain (loss) on commodity derivatives	—		—		—		—		(2,131)	—		—		(2,131)
Net income	—		—		—		442,049		—	—		—		442,049
Balance, March 31, 2024	1,124,870	$	5,624	$	5,034,948	$	6,381,785	$	(157,940)	(83,172)	$	(2,686,628)	$	8,577,789
Stock-based compensation	—		—		19,645		—		—	—		—		19,645
Stock options/awards	460		3		13,698		—		—	—		—		13,701
Unrealized gain (loss), net on available-for-sale securities	—		—		—		—		535	—		—		535
Repurchase of common stock	—		—		—		—		—	(58,778)		(3,145,817)		(3,145,817)
Foreign currency translation	—		—		—		—		(31,104)	—		—		(31,104)
Net gain (loss) on commodity derivatives	—		—		—		—		6,205	—		—		6,205
Net income	—		—		—		425,369		—	—		—		425,369
Balance, June 30, 2024	1,125,330	$	5,627	$	5,068,291	$	6,807,154	$	(182,304)	(141,950)	$	(5,832,445)	$	5,866,323

								Accumulated Other					Total
	Common stock			Additional		Retained		Comprehensive (Loss)		Treasury stock			Stockholders’
	Shares	Amount		Paid-in Capital		Earnings		Income		Shares	Amount		Equity
Balance, December 31, 2022	1,283,688	$	6,418	$	4,776,804	$	9,001,173	$	(159,073)	(239,088)	$	(6,600,281)	$	7,025,041
Stock-based compensation	—		—		15,743		—		—	—		—		15,743
Stock options/awards	3,704		19		36,329		—		—	—		—		36,348
Unrealized gain (loss), net on available-for-sale securities	—		—		—		—		3,181	—		—		3,181
Repurchase of common stock	—		—		—		—		—	(1,688)		(90,378)		(90,378)
Retirement of treasury stock	(170,000)		(850)		425		(4,692,425)		—	170,000		4,692,850		—
Foreign currency translation	—		—		—		—		7,981	—		—		7,981
Net income	—		—		—		397,444		—	—		—		397,444
Balance, March 31, 2023	1,117,392	$	5,587	$	4,829,301	$	4,706,192	$	(147,911)	(70,776)	$	(1,997,809)	$	7,395,360
Stock-based compensation	—		—		17,176		—		—	—		—		17,176
Stock options/awards	877		4		23,314		—		—	—		—		23,318
Unrealized gain (loss), net on available-for-sale securities	—		—		—		—		(773)	—		—		(773)
Repurchase of common stock	—		—		—		—		—	(8)		(447)		(447)
Foreign currency translation	—		—		—		—		(5,775)	—		—		(5,775)
Net gain (loss) on commodity derivatives	—		—		—		—		(1,266)	—		—		(1,266)
Net income	—		—		—		413,871		—	—		—		413,871
Balance, June 30, 2023	1,118,269	$	5,591	$	4,869,791	$	5,120,063	$	(155,725)	(70,784)	$	(1,998,256)	$	7,841,464

See accompanying notes to condensed consolidated financial statements.

6

MONSTER BEVERAGE CORPORATION AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

FOR THE SIX-MONTHS ENDED JUNE 30, 2024 AND 2023

(In Thousands) (Unaudited)

	Six-Months Ended
	June 30,
	2024		2023
CASH FLOWS FROM OPERATING ACTIVITIES:
Net income	$	867,418	$	811,315
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization		39,913		32,384
Non-cash lease expense		6,599		2,828
Loss (gain) on disposal of property and equipment		1,849		(767)
Loss on impairment of intangibles		—		2,800
Loss on impairment of property and equipment		6,067		—
Stock-based compensation		41,262		34,603
Deferred income taxes		(13,294)		—
Effect on cash of changes in operating assets and liabilities:
Accounts receivable		(197,227)		(317,808)
Inventories		123,484		93,077
Prepaid expenses and other assets		(13,993)		(36,779)
Prepaid income taxes		(12,297)		(3,345)
Accounts payable		(33,505)		132,173
Accrued liabilities		2,715		20,491
Accrued promotional allowances		54,242		23,643
Accrued compensation		(26,954)		(17,616)
Income taxes payable		11,348		(1,219)
Other liabilities		(1,463)		(257)
Deferred revenue		(7,731)		(12,361)
Net cash provided by operating activities		848,433		763,162
CASH FLOWS FROM INVESTING ACTIVITIES:
Sales of available-for-sale investments		1,377,915		1,037,803
Purchases of available-for-sale investments		(342,121)		(1,091,126)
Purchases of property and equipment		(125,812)		(82,425)
Proceeds from sale of property and equipment		1,052		1,035
Additions to intangibles		(6,364)		(5,926)
Increase in other assets		(1,366)		(17,570)
Net cash provided by (used in) investing activities		903,304		(158,209)
CASH FLOWS FROM FINANCING ACTIVITIES:
Payments on short-term debt		(5,269)		(6,661)
Borrowings on credit facilities		750,000		—
Payments for debt issuance costs		(2,776)		—
Issuance of common stock		52,093		59,666
Purchases of common stock held in treasury		(3,234,523)		(90,825)
Net cash used in financing activities		(2,440,475)		(37,820)
Effect of exchange rate changes on cash and cash equivalents		(44,203)		(4,500)
NET (DECREASE) INCREASE IN CASH AND CASH EQUIVALENTS		(732,941)		562,633
CASH AND CASH EQUIVALENTS, beginning of period		2,297,675		1,307,141
CASH AND CASH EQUIVALENTS, end of period	$	1,564,734	$	1,869,774
SUPPLEMENTAL INFORMATION:
Cash paid during the period for:
Interest	$	1,460	$	147
Income taxes	$	276,359	$	232,896

See accompanying notes to condensed consolidated financial statements.

7

MONSTER BEVERAGE CORPORATION AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

FOR THE SIX-MONTHS ENDED JUNE 30, 2024 AND 2023

(In Thousands) (Unaudited) (Continued)

SUPPLEMENTAL DISCLOSURE OF NON-CASH ITEMS

Included in accrued liabilities as of June 30, 2024 and 2023 were $9.6 million related to net additions to other intangible assets.

Included in accounts payable as of June 30, 2024 were $0.9 million of treasury stock repurchases.

Included in accounts payable as of June 30, 2023 were $3.2 million related to net additions to other intangible assets.

Included in accounts payable as of June 30, 2024 and 2023 were $9.6 million and $2.0 million, respectively, related to equipment purchases.

See accompanying notes to condensed consolidated financial statements.

8

MONSTER BEVERAGE CORPORATION AND SUBSIDIARIES

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(Tabular Dollars in Thousands, Except Per Share Amounts) (Unaudited)

1. BASIS OF PRESENTATION

Reference is made to the Notes to Consolidated Financial Statements, in Monster Beverage Corporation and Subsidiaries (the “Company”) Annual Report on Form 10-K for the year ended December 31, 2023 for a summary of significant accounting policies utilized by the Company and its consolidated subsidiaries and other disclosures, which should be read in conjunction with this Quarterly Report on Form 10-Q (“Form 10-Q”).

The Company’s condensed consolidated financial statements included in this Form 10-Q have been prepared in accordance with accounting principles generally accepted in the United States of America (“GAAP”) and Securities and Exchange Commission (“SEC”) rules and regulations applicable to interim financial reporting. They do not include all the information and footnote disclosures normally included in annual financial statements prepared in accordance with GAAP. The information set forth in these interim condensed consolidated financial statements for the three-and six-months ended June 30, 2024 and 2023, respectively, is unaudited and reflects all adjustments, which include only normal recurring adjustments and which in the opinion of management are necessary to make the interim condensed consolidated financial statements not misleading. Results of operations for periods covered by this report may not necessarily be indicative of results of operations for the full year.

The preparation of financial statements in conformity with GAAP necessarily requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting periods. Actual results could differ from these estimates.

Recent Accounting Pronouncements

In November 2023, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) No. 2023-07, Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosures. The amendments in this update improve reportable segment disclosure requirements, primarily through enhanced disclosures about significant segment expenses. The amendments in ASU No. 2023-07 are effective for fiscal years beginning after December 15, 2023. Early adoption is permitted. The Company is currently evaluating the impact ASU No. 2023-07 will have on its consolidated financial statements.

In December 2023, the FASB issued ASU No. 2023-09, Income Taxes (Topic 740): Improvements to Income Tax Disclosures. The amendments in this update primarily require more detailed disclosures related to the rate reconciliation and income taxes paid. The amendments in ASU No. 2023-09 are effective for fiscal years beginning after December 15, 2024. Early adoption is permitted. The Company is currently evaluating the impact ASU No. 2023-09 will have on its consolidated financial statements.

2. REVENUE RECOGNITION

Revenues are accounted for in accordance with FASB Accounting Standards Codification (“ASC”) 606, “Revenue from Contracts with Customers”. The Company has four operating and reportable segments: (i) Monster Energy® Drinks segment (“Monster Energy® Drinks”), which is primarily comprised of the Company’s Monster Energy® drinks, Reign Total Body Fuel® high performance energy drinks, Reign Storm® total wellness energy drinks, Bang Energy® drinks and Monster Tour Water®, (ii) Strategic Brands segment (“Strategic Brands”), which is primarily comprised of the various energy drink brands acquired from The Coca-Cola Company (“TCCC”) in 2015 as well as the Company’s affordable energy brands, Predator® and Fury®, (iii) Alcohol Brands segment (“Alcohol Brands”), which is comprised of various craft beers, hard seltzers and flavored malt beverages (“FMBs”) and (iv) Other segment (“Other”), which is comprised of certain products sold by American Fruits and Flavors, LLC, a wholly-owned subsidiary of the Company, to independent third-party customers (the “AFF Third-Party Products”).

The Company’s Monster Energy® Drinks segment primarily generates net operating revenues by selling ready-to-drink packaged drinks primarily to bottlers and full service beverage distributors (“bottlers/distributors”). In some cases, the Company sells ready-to-drink packaged drinks directly to retail grocery and specialty chains, wholesalers, club stores, mass merchandisers, convenience and gas chains, drug stores, foodservice customers, value stores, e-commerce retailers and the military.

9

MONSTER BEVERAGE CORPORATION AND SUBSIDIARIES

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(Tabular Dollars in Thousands, Except Per Share Amounts) (Unaudited)

The Company’s Strategic Brands segment primarily generates net operating revenues by selling “concentrates” and/or “beverage bases” to authorized bottling and canning operations. Such bottlers generally combine the concentrates and/or beverage bases with sweeteners, water and other ingredients to produce ready-to-drink packaged energy drinks. The ready-to-drink packaged energy drinks are then sold by such bottlers to other bottlers/distributors and to retail grocery and specialty chains, wholesalers, club stores, mass merchandisers, convenience and gas chains, foodservice customers, drug stores, value stores, e-commerce retailers and the military. To a lesser extent, the Strategic Brands segment generates net operating revenues by selling certain ready-to-drink packaged energy drinks to bottlers/distributors.

The Company’s Alcohol Brands segment primarily generates operating revenues by selling kegged and ready-to-drink canned beers, hard seltzers and FMBs primarily to beer distributors in the United States.

The majority of the Company’s revenue is recognized when it satisfies a single performance obligation by transferring control of its products to a customer. Control is generally transferred when the Company’s products are either shipped or delivered based on the terms contained within the underlying contracts or agreements. Certain of the Company’s bottlers/distributors may also perform a separate function as a co-packer on the Company’s behalf. In such cases, control of the Company’s products passes to such bottlers/distributors when they notify the Company that they have taken possession or transferred the relevant portion of the Company’s finished goods. The Company’s general payment terms are short-term in duration. The Company does not have significant financing components or payment terms. The Company did not have any material unsatisfied performance obligations as of June 30, 2024 and December 31, 2023.

The Company excludes from revenues all taxes assessed by a governmental authority that are imposed on the sale of its products and collected from customers.

Distribution expenses to transport the Company’s products, where applicable, and warehousing expenses after manufacture are accounted for within operating expenses.

Promotional and other allowances (variable consideration) recorded as a reduction to net sales for the Company’s energy drink products primarily include consideration given to the Company’s non-alcohol bottlers/distributors or retail customers, including, but not limited to, the following:

● discounts granted off list prices to support price promotions to end-consumers by retailers;

● reimbursements given to the Company’s bottlers/distributors for agreed portions of their promotional spend with retailers, including slotting, shelf space allowances and other fees for both new and existing products;

● the Company’s agreed share of fees given to bottlers/distributors and/or directly to retailers for advertising, in-store marketing and promotional activities;

● the Company’s agreed share of slotting, shelf space allowances and other fees given directly to retailers, club stores and/or wholesalers;

● incentives given to the Company’s bottlers/distributors and/or retailers for achieving or exceeding certain predetermined sales goals;

● discounted or free products;

● contractual fees given to the Company’s bottlers/distributors related to sales made directly by the Company to certain customers that fall within the bottlers’/distributors’ sales territories; and

● commissions to TCCC based on the Company’s sales to wholly-owned subsidiaries of TCCC (the “TCCC Subsidiaries”) and/or to TCCC bottlers/distributors accounted for under the equity method by TCCC (the “TCCC Related Parties”).

The Company’s promotional allowance programs for its energy drink products are executed through separate agreements in the ordinary course of business. These agreements generally provide for one or more of the arrangements described above and are of varying durations, typically ranging from one week to one year. The Company’s promotional and other allowances for its energy drink products are calculated based on various programs with bottlers/distributors and retail customers, and accruals are established at the time of initial product sale for the Company’s anticipated liabilities. These accruals are based on agreed upon terms as well as the Company’s historical experience with similar programs and require management’s judgment with respect to estimating consumer

10

MONSTER BEVERAGE CORPORATION AND SUBSIDIARIES

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(Tabular Dollars in Thousands, Except Per Share Amounts) (Unaudited)

participation and/or bottler/distributor and retail customer performance levels. Differences between such estimated expenses and actual expenses for promotional and other allowance costs have historically been insignificant and are recognized in earnings in the period such differences are determined. Promotional and other allowances for our Alcohol Brands segment primarily include price promotions where permitted.

Amounts received pursuant to new and/or amended distribution agreements entered into with certain bottlers/distributors relating to the costs associated with terminating the Company’s prior distributors, are accounted for as deferred revenue and recognized as revenue ratably over the anticipated life of the respective distribution agreements, generally over 20 years.

The Company also enters into license agreements that generate revenues associated with third-party sales of non-beverage products bearing the Company’s trademarks including, but not limited to, clothing, hats, t-shirts, jackets, helmets and automotive wheels.

Management believes that adequate provision has been made for cash discounts, returns and spoilage based on the Company’s historical experience.

Disaggregation of Revenue

The following tables disaggregate the Company’s revenue by geographical markets and reportable segments:

	Three-Months Ended June 30, 2024
					Asia Pacific		Latin
	U.S. and				(including		America and
Net Sales	Canada		EMEA1		Oceania)		Caribbean		Total
Monster Energy® Drinks	$	1,100,063	$	351,985	$	132,078	$	158,682	$	1,742,808
Strategic Brands		49,579		41,938		13,010		4,695		109,222
Alcohol Brands		41,564		—		—		—		41,564
Other		7,003		—		—		—		7,003
Total Net Sales	$	1,198,209	$	393,923	$	145,088	$	163,377	$	1,900,597

	Three-Months Ended June 30, 2023
					Asia Pacific		Latin
	U.S. and				(including		America and
Net Sales	Canada		EMEA1		Oceania)		Caribbean		Total
Monster Energy® Drinks	$	1,068,887	$	339,522	$	138,478	$	140,000	$	1,686,887
Strategic Brands		47,226		42,050		7,828		2,586		99,690
Alcohol Brands		61,076		—		—		—		61,076
Other		7,308		—		—		—		7,308
Total Net Sales	$	1,184,497	$	381,572	$	146,306	$	142,586	$	1,854,961

¹Europe, Middle East and Africa (“EMEA”)

11

MONSTER BEVERAGE CORPORATION AND SUBSIDIARIES

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(Tabular Dollars in Thousands, Except Per Share Amounts) (Unaudited)

	Six-Months Ended June 30, 2024
					Asia Pacific		Latin
	U.S. and				(including		America and
Net Sales	Canada		EMEA1		Oceania)		Caribbean		Total
Monster Energy® Drinks	$	2,194,909	$	704,214	$	254,096	$	318,640	$	3,471,859
Strategic Brands		99,221		85,275		22,207		10,963		217,666
Alcohol Brands		97,634		—		—		—		97,634
Other		12,536		—		—		—		12,536
Total Net Sales	$	2,404,300	$	789,489	$	276,303	$	329,603	$	3,799,695

	Six-Months Ended June 30, 2023
					Asia Pacific		Latin
	U.S. and				(including		America and
Net Sales	Canada		EMEA1		Oceania)		Caribbean		Total
Monster Energy® Drinks	$	2,090,215	$	616,633	$	260,472	$	281,235	$	3,248,555
Strategic Brands		90,269		73,001		16,811		5,967		186,048
Alcohol Brands		107,366		—		—		—		107,366
Other		11,922		—		—		—		11,922
Total Net Sales	$	2,299,772	$	689,634	$	277,283	$	287,202	$	3,553,891

¹Europe, Middle East and Africa (“EMEA”)

Contract Liabilities

Amounts received from certain bottlers/distributors at inception of their distribution contracts or at the inception of certain sales/marketing programs are accounted for as deferred revenue. As of June 30, 2024 and December 31, 2023, the Company had $236.7 million and $246.2 million, respectively, of deferred revenue, which is included in current and long-term deferred revenue in the Company’s condensed consolidated balance sheets. During both the three-months ended June 30, 2024 and 2023, $10.0 million of deferred revenue was recognized in net sales. During both the six-months ended June 30, 2024 and 2023, $19.9 million of deferred revenue was recognized in net sales. See Note 10.

3. LEASES

The Company leases identified assets consisting primarily of office and warehouse space, warehouse equipment and vehicles. Leases are classified as either finance leases or operating leases based on criteria in ASC 842, “Leases”. The Company’s leases have remaining lease terms of less than one year to 10 years, some of which include options to extend the leases for up to five years, and some of which include options to terminate the leases within one year.

12

MONSTER BEVERAGE CORPORATION AND SUBSIDIARIES

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(Tabular Dollars in Thousands, Except Per Share Amounts) (Unaudited)

The components of lease cost were as follows:

	Three-Months Ended June 30,				Six-Months Ended June 30,
	2024		2023		2024		2023
Operating lease cost	$	3,888	$	2,616	$	7,690	$	5,083
Short-term lease cost		2,151		1,070		4,821		2,049
Variable lease cost		228		226		441		441
Finance leases:
Amortization of right-of-use assets		489		202		1,084		325
Interest on lease liabilities		57		44		148		58
Finance lease cost		546		246		1,232		383
Total lease cost	$	6,813	$	4,158	$	14,184	$	7,956

Supplemental cash flow information was as follows:

	Six-Months Ended June 30,
	2024		2023
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash outflows from operating leases	$	7,355	$	4,818
Operating cash outflows from finance leases		148		58
Financing cash outflows from finance leases		5,267		1,683
Right-of-use assets obtained in exchange for lease obligations:
Finance leases		987		5,115
Operating leases		3,704		1,847

Supplemental balance sheet information was as follows:

		June 30,		December 31,
	Balance Sheet Location	2024		2023
Operating leases:
Right-of-use assets	Other assets	$	55,731	$	58,845
Current lease liabilities	Accrued liabilities	$	11,105	$	11,088
Noncurrent lease liabilities	Other liabilities		45,862		48,459
Total operating lease liabilities		$	56,967	$	59,547
Finance leases:
Right-of-use assets	Property and equipment, net	$	7,722	$	11,147
Current lease liabilities	Accrued liabilities	$	2,167	$	6,449
Noncurrent lease liabilities	Other liabilities		10		19
Total finance lease liabilities		$	2,177	$	6,468

13

MONSTER BEVERAGE CORPORATION AND SUBSIDIARIES

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(Tabular Dollars in Thousands, Except Per Share Amounts) (Unaudited)

Weighted-average remaining lease term and weighted-average discount rate for the Company’s leases were as follows:

	June 30,		December 31,
	2024		2023
Weighted-average remaining lease term in years:
Operating leases	6.0		6.3
Finance leases	0.4		0.7
Weighted-average discount rate:
Operating leases	4.7	%	4.7	%
Finance leases	6.3	%	6.3	%

The following table outlines maturities of the Company’s lease liabilities as of June 30, 2024:

	Undiscounted Future Lease Payments
	Operating Leases		Finance Leases
2024 (from July 1, 2024 to December 31, 2024)	$	6,779	$	2,000
2025		12,617		211
2026		10,356		2
2027		9,633		—
2028		8,089		—
2029 and thereafter		18,295		—
Total lease payments		65,769		2,213
Less imputed interest		(8,802)		(36)
Total	$	56,967	$	2,177

As of June 30, 2024, the Company did not have any significant leases that had not yet commenced.

14

MONSTER BEVERAGE CORPORATION AND SUBSIDIARIES

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(Tabular Dollars in Thousands, Except Per Share Amounts) (Unaudited)

4. INVESTMENTS

The following table summarizes the Company’s investments at December 31, 2023. The Company held no short-term or long-term investments at June 30, 2024 as all investments were liquidated during the three-months ended June 30, 2024 to fund a modified “Dutch auction” tender offer. See Note 14.

									Continuous		Continuous
			Gross		Gross				Unrealized		Unrealized
			Unrealized		Unrealized				Loss Position		Loss Position
	Amortized		Holding		Holding		Fair		less than		greater than
December 31, 2023	Cost		Gains		Losses		Value		12 Months		12 Months
Available-for-sale
Short-term:
Commercial paper	$	163,775	$	—	$	1	$	163,774	$	1	$	—
Certificates of deposit		15,590		—		—		15,590		—		—
Municipal securities		361		—		—		361		—		—
U.S. government agency securities		116,524		90		66		116,548		66		—
U.S. treasuries		412,936		205		1,084		412,057		1,084		—
Corporate bonds		247,340		89		154		247,275		154		—
Long-term:
U.S. government agency securities		23,485		51		5		23,531		5		—
U.S. treasuries		35,896		79		8		35,967		8		—
Corporate bonds		16,903		32		2		16,933		2		—
Total	$	1,032,810	$	546	$	1,320	$	1,032,036	$	1,320	$	—

During the three-and six-months ended June 30, 2024 and 2023, realized gains or losses recognized on the sale of investments were not significant.

The Company’s investments at December 31, 2023 carried investment grade credit ratings.

15

MONSTER BEVERAGE CORPORATION AND SUBSIDIARIES

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(Tabular Dollars in Thousands, Except Per Share Amounts) (Unaudited)

The following table summarizes the underlying contractual maturities of the Company’s investments at December 31, 2023. The Company held no short-term or long-term investments at June 30, 2024.

	December 31, 2023
	Amortized Cost		Fair Value
Less than 1 year:
Commercial paper	$	163,775	$	163,774
Municipal securities		361		361
U.S. government agency securities		116,524		116,548
Certificates of deposit		15,590		15,590
U.S. treasuries		412,936		412,057
Corporate bonds		247,340		247,275
Due 1 - 10 years:
U.S. treasuries		35,896		35,967
U.S. government agency securities		23,485		23,531
Corporate bonds		16,903		16,933
Total	$	1,032,810	$	1,032,036

5. FAIR VALUE OF CERTAIN FINANCIAL ASSETS AND LIABILITIES

ASC 820, “Fair Value Measurement”, provides a framework for measuring fair value and requires disclosures regarding fair value measurements. ASC 820 defines fair value as the price that would be received on the sale of an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. ASC 820 also establishes a fair value hierarchy that requires an entity to maximize the use of observable inputs, where available. The three levels of inputs required by the standard that the Company uses to measure fair value are summarized below.

● Level 1: Quoted prices in active markets for identical assets or liabilities.

● Level 2: Observable inputs other than Level 1 prices, such as quoted prices for similar assets or liabilities, quoted prices in markets that are not active, or other inputs that are observable or can be corroborated by observable market data for substantially the full term of the related assets or liabilities.

● Level 3: Unobservable inputs that are supported by little or no market activity and that are significant to the fair value of the assets or liabilities.

ASC 820 requires the use of observable market inputs (quoted market prices) when measuring fair value and requires a Level 1 quoted price to be used to measure fair value whenever possible.

16

MONSTER BEVERAGE CORPORATION AND SUBSIDIARIES

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(Tabular Dollars in Thousands, Except Per Share Amounts) (Unaudited)

The following tables present the fair value of the Company’s financial assets and liabilities that are recorded at fair value on a recurring basis, segregated among the appropriate levels within the fair value hierarchy at:

June 30, 2024	Level 1		Level 2		Level 3		Total
Cash	$	948,105	$	—	$	—	$	948,105
Money market funds		576,964		—		—		576,964
Certificates of deposit		—		39,665		—		39,665
Foreign currency derivatives		—		(214)		—		(214)
Commodity derivatives		—		5,600		—		5,600
Total	$	1,525,069	$	45,051	$	—	$	1,570,120
Amounts included in:
Cash and cash equivalents	$	1,525,069	$	39,665	$	—	$	1,564,734
Accounts receivable, net		—		8,660		—		8,660
Accrued liabilities		—		(2,915)		—		(2,915)
Other liabilities		—		(359)		—		(359)
Total	$	1,525,069	$	45,051	$	—	$	1,570,120

December 31, 2023	Level 1		Level 2		Level 3		Total
Cash	$	1,105,701	$	—	$	—	$	1,105,701
Money market funds		960,873		—		—		960,873
Certificates of deposit		—		33,824		—		33,824
Commercial paper		—		163,774		—		163,774
Corporate bonds		—		264,208		—		264,208
Municipal securities		—		361		—		361
U.S. government agency securities		—		159,585		—		159,585
U.S. treasuries		—		641,385		—		641,385
Foreign currency derivatives		—		(1,083)		—		(1,083)
Commodity derivatives		—		4,410		—		4,410
Total	$	2,066,574	$	1,266,464	$	—	$	3,333,038
Amounts included in:
Cash and cash equivalents	$	2,066,574	$	231,101	$	—	$	2,297,675
Short-term investments		—		955,605		—		955,605
Accounts receivable, net		—		4,618		—		4,618
Other assets		—		316		—		316
Investments		—		76,431		—		76,431
Accrued liabilities		—		(1,607)		—		(1,607)
Total	$	2,066,574	$	1,266,464	$	—	$	3,333,038

At December 31, 2023, all of the Company’s short-term and long-term investments were classified within Level 1 or Level 2 of the fair value hierarchy. At June 30, 2024, the Company held no investments. The Company’s valuation of its Level 1 investments is based on quoted market prices in active markets for identical securities. The Company’s valuation of its Level 2 investments is based on other observable inputs, specifically a market approach which utilizes valuation models, pricing systems, mathematical tools and other relevant information for the same or similar securities. The Company’s valuation of its Level 2 foreign currency exchange contracts is based on quoted market prices of the same or similar instruments, adjusted for counterparty risk. There were no transfers between Level 1 and Level 2 measurements during the three- and six-months ended June 30, 2024, or during the year-ended December 31, 2023, and there were no changes in the Company’s valuation techniques.

17

MONSTER BEVERAGE CORPORATION AND SUBSIDIARIES

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(Tabular Dollars in Thousands, Except Per Share Amounts) (Unaudited)

6. DERIVATIVE INSTRUMENTS AND HEDGING ACTIVITIES

The Company accounts for its derivative instruments and hedging activities under ASC 815, “Derivatives and Hedging.” The following table presents the fair values of the Company’s derivative instruments:

	Fair value
Derivatives designated as	June 30,		December 31,
hedging instruments	2024		2023		Balance Sheet location
Assets:
Commodity contracts	$	7,450	$	4,480	Accounts receivable, net
Commodity contracts	$	—	$	316	Other assets
Liabilities:
Commodity contracts	$	(1,491)	$	(386)	Accrued liabilities
Commodity contracts	$	(359)	$	—	Other liabilities

	Fair value
Derivatives not designated as	June 30,		December 31,
hedging instruments	2024		2023		Balance Sheet location
Assets:
Foreign currency exchange contracts	$	1,210	$	138	Accounts receivable, net
Liabilities:
Foreign currency exchange contracts	$	(1,424)	$	(1,221)	Accrued liabilities

Cash Flow Hedging Strategy

The Company uses cash flow hedges to minimize the variability in cash flows of forecasted transactions caused by fluctuations in commodity prices. The changes in the fair values of derivatives designated as cash flow hedges are recorded in accumulated other comprehensive income (loss) (“AOCI”) and are reclassified into the line item in our condensed consolidated statement of income in which the hedged items are recorded in the same period that the hedged items affect earnings. The changes in the fair values of hedges that are determined to be ineffective are immediately reclassified from AOCI into earnings. The maximum length of time for which the Company hedges its exposure to the variability in future cash flows is currently less than two years.

The Company has entered into commodity hedge contracts to mitigate the price risk associated with a portion of its forecasted aluminum purchases. These derivative instruments were designated as part of the Company’s commodity cash flow hedging program. The objective of this hedging program is to reduce the variability of cash flows associated with future purchases of aluminum. The total notional values of derivatives that were designated and qualified for this program were $143.8 million and $98.3 million as of June 30, 2024 and December 31, 2023, respectively.

The following table presents the impact that changes in the fair values of derivatives designated as cash flow hedges had on other comprehensive income, AOCI and earnings:

Three-Months Ended June 30, 2024
				Gain (loss)
Derivatives designated as	Gain (loss)		Location of gain (loss)	reclassified from
hedging instruments	recognized in AOCI		recognized in income	AOCI into income
Commodity contracts	$	6,205	Cost of sales	$	—

18

MONSTER BEVERAGE CORPORATION AND SUBSIDIARIES

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(Tabular Dollars in Thousands, Except Per Share Amounts) (Unaudited)

Three-Months Ended June 30, 2023
				Gain (loss)
Derivatives designated as		Gain (loss) recognized	Location of gain (loss)	reclassified from
hedging instruments	in AOCI		recognized in income	AOCI into income
Commodity contracts	$	(1,266)	Cost of sales	$	—

Six-Months Ended June 30, 2024
				Gain (loss)
Derivatives designated as	Gain (loss)		Location of gain (loss)	reclassified from
hedging instruments	recognized in AOCI		recognized in income	AOCI into income
Commodity contracts	$	8,483	Cost of sales	$	(966)

Six-Months Ended June 30, 2023
				Gain (loss)
Derivatives designated as	Gain (loss)		Location of gain (loss)	reclassified from
hedging instruments	recognized in AOCI		recognized in income	AOCI into income
Commodity contracts	$	(1,266)	Cost of sales	$	—

As of June 30, 2024, the Company estimates that it will reclassify into earnings net gains (losses) of $8.4 million from the amount recorded in AOCI as the anticipated cash flows occur during the next 12 months.

Economic (Non-Designated) Hedging Strategy

The Company is exposed to foreign currency exchange rate risks related primarily to its foreign business operations. During the three- and six-months ended June 30, 2024 and 2023, the Company entered into forward currency exchange contracts with financial institutions to create an economic hedge to specifically manage a portion of the foreign exchange risk exposure associated with certain consolidated subsidiaries’ non-functional currency denominated assets and liabilities. All foreign currency exchange contracts of the Company that were outstanding as of June 30, 2024 have terms of approximately one month or less. The Company does not enter into forward currency exchange contracts for speculation or trading purposes.

The Company has not designated its foreign currency exchange contracts as hedge transactions. Therefore, gains and losses on the Company’s foreign currency exchange contracts are recognized in interest and other income, net, in the condensed consolidated statements of income, and are largely offset by the changes in the fair value of the underlying economically hedged item. The total notional values of derivatives related to our foreign currency economic hedges were $239.3 million and $282.7 million as of June 30, 2024 and December 31, 2023, respectively.

19

MONSTER BEVERAGE CORPORATION AND SUBSIDIARIES

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(Tabular Dollars in Thousands, Except Per Share Amounts) (Unaudited)

The net gains (losses) on derivatives not designated as hedging instruments in the condensed consolidated statements of income were as follows:

		Gain (loss) recognized
		in income on derivatives
		Three-Months Ended
Derivatives not designated as	Location of gain (loss)	June 30,		June 30,
hedging instruments	recognized in income on derivatives	2024		2023
Foreign currency exchange contracts	Interest and other income, net	$	(2,633)	$	(1,924)

		Gain (loss) recognized
		in income on derivatives
		Six-Months Ended
Derivatives not designated as	Location of gain (loss)	June 30,		June 30,
hedging instruments	recognized in income on derivatives	2024		2023
Foreign currency exchange contracts	Interest and other income, net	$	2,711	$	(9,775)

Certain of the Company’s counterparty agreements contain provisions that require the Company to post collateral on derivative instruments in a net liability position. As of June 30, 2024, $7.4 million was held as collateral and $1.2 million was posted as collateral.

7. INVENTORIES

Inventories consist of the following at:

	June 30,		December 31,
	2024		2023
Raw materials	$	271,341	$	330,021
Work in process		1,526		1,403
Finished goods		561,537		639,982
	$	834,404	$	971,406

8. PROPERTY AND EQUIPMENT, NET

Property and equipment consist of the following at:

	June 30,		December 31,
	2024		2023
Land	$	158,505	$	152,253
Leasehold improvements		33,264		37,946
Furniture and fixtures		11,390		11,422
Office and computer equipment		26,833		25,560
Computer software		6,636		5,344
Equipment		462,428		426,466
Buildings		217,214		211,951
Vehicles		69,902		69,527
Assets under construction		261,279		211,562
		1,247,451		1,152,031
Less: accumulated depreciation and amortization		(286,489)		(261,235)
	$	960,962	$	890,796

20

MONSTER BEVERAGE CORPORATION AND SUBSIDIARIES

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(Tabular Dollars in Thousands, Except Per Share Amounts) (Unaudited)

Total depreciation and amortization expense was $17.8 million and $14.7 million for the three-months ended June 30, 2024 and 2023, respectively. Total depreciation and amortization expense was $36.9 million and $29.5 million for the six-months ended June 30, 2024 and 2023, respectively.

9.GOODWILL AND OTHER INTANGIBLE ASSETS

The following is a roll-forward of goodwill for the six-months ended June 30, 2024 and 2023 by reportable segment:

	Monster
	Energy®		Strategic		Alcohol
	Drinks		Brands		Brands		Other		Total
Balance at December 31, 2023	$	693,644	$	637,999	$	86,298	$	—	$	1,417,941
Acquisitions		—		—		—		—		—
Balance at June 30, 2024	$	693,644	$	637,999	$	86,298	$	—	$	1,417,941

	Monster
	Energy®		Strategic		Alcohol
	Drinks		Brands		Brands		Other		Total
Balance at December 31, 2022	$	693,644	$	637,999	$	86,298	$	—	$	1,417,941
Acquisitions		—		—		—		—		—
Balance at June 30, 2023	$	693,644	$	637,999	$	86,298	$	—	$	1,417,941

Intangible assets consist of the following at:

	June 30,		December 31,
	2024		2023
Amortizing intangibles	$	144,577	$	144,582
Accumulated amortization		(77,668)		(74,699)
		66,909		69,883
Non-amortizing intangibles		1,366,417		1,357,256
	$	1,433,326	$	1,427,139

Amortizing intangibles primarily consist of customer relationships. All amortizing intangibles have been assigned an estimated finite useful life and such intangibles are amortized on a straight-line basis over the number of years that approximate their respective useful lives, generally ten to fifteen years. Total amortization expense was $1.7 million and $0.9 million for the three-months ended June 30, 2024 and 2023, respectively. Total amortization expense was $3.0 million and $2.9 million for the six-months ended June 30, 2024 and 2023, respectively. For the three- and six-months ended June 30, 2024, no impairment charges were recorded to intangible assets. For both the three- and six-months ended June 30, 2023, impairment charges of $2.8 million were recorded to non-amortizing intangibles.

The following is the future estimated amortization expense related to amortizing intangibles as of June 30, 2024:

2024 (from July 1, 2024 to December 31, 2024)	$	4,461
2025		5,947
2026		5,947
2027		5,946
2028		5,945
2029 and thereafter		38,663
	$	66,909

21

MONSTER BEVERAGE CORPORATION AND SUBSIDIARIES

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(Tabular Dollars in Thousands, Except Per Share Amounts) (Unaudited)

10. DISTRIBUTION AGREEMENTS

In the normal course of business, amounts received pursuant to new and/or amended distribution agreements entered into with certain bottlers/distributors, relating to the costs associated with terminating agreements with the Company’s prior distributors, or at the inception of certain sales/marketing programs are accounted for as deferred revenue and are recognized as revenue ratably over the anticipated life of the respective agreement, generally 20 years or program duration, as the case may be. Revenue recognized was $10.0 million for both the three-months ended June 30, 2024 and 2023. Revenue recognized was $19.9 million for both the six-months ended June 30, 2024 and 2023.

11. DEBT

The Company’s long-term debt consisted of the following:

	June 30,		December 31,
	2024		2023
Term loan	$	750,000	$	—
Revolving credit facility		—		—
Total debt		750,000		—
Less: unamortized debt issuance costs		(1,260)		—
Total debt, net of unamortized debt issuance costs		748,740		—
Less: current portion of long-term debt		—		—
Long-term debt	$	748,740	$	—

In May 2024, the Company entered into a credit agreement with JPMorgan Chase Bank, N.A., as administrative agent, and certain other lenders, which provides for senior unsecured credit facilities in an aggregate principal amount of $1.50 billion (collectively, the “Credit Facilities”). The Credit Facilities consist of a $750.0 million term loan (the “Term Loan”) and up to $750.0 million in multicurrency revolving loan commitments (the “Revolving Credit Facility”). The Term Loan matures May 2027 and the Revolving Credit Facility matures May 2029. As of June 30, 2024, the Company was in compliance with all covenants under the Credit Facilities.

Borrowings under the Credit Facilities bear interest at a variable rate per annum equal to the applicable rate plus margin (as defined in the Credit Facilities). The interest rate in effect on the Term Loan was 6.30% as of June 30, 2024. No borrowings were outstanding under the Revolving Credit Facility as of June 30, 2024.

Borrowings under the Credit Facilities are due on the respective maturity date. Borrowings may be repaid at any time during the term of the Credit Facilities and, in the case of the Revolving Credit Facility, may be reborrowed prior to the maturity date.

Additionally, the Company has a line of credit of up to $15.0 million with HSBC Bank (China) Company Limited, Shanghai Branch. At June 30, 2024, the interest rate on borrowings under the line of credit was 5.5%. As of June 30, 2024, no amount was outstanding on this line of credit.

Based on Level 2 inputs, the carrying value of the Company’s debt approximates fair value, as borrowings are subject to variable interest rates that adjust with changes in market rates and market conditions and the current interest rate approximates that which would be available under similar financial arrangements.

12. COMMITMENTS AND CONTINGENCIES

The Company had purchase commitments aggregating approximately $262.5 million at June 30, 2024, which represented commitments made by the Company and its subsidiaries to various suppliers of raw materials for the production of its products. These obligations vary in terms but are generally satisfied within one year.

The Company had contractual obligations aggregating approximately $432.1 million at June 30, 2024, which related primarily to sponsorships and other marketing activities.

22

MONSTER BEVERAGE CORPORATION AND SUBSIDIARIES

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(Tabular Dollars in Thousands, Except Per Share Amounts) (Unaudited)

Litigation — From time to time in the normal course of business, the Company is named in litigation, including labor and employment matters, personal injury matters, consumer class actions, intellectual property matters and claims from prior distributors. Although it is not possible to predict the ultimate outcome of such litigation, based on the facts known to the Company, management believes that such litigation in aggregate will likely not have a material adverse effect on the Company’s financial position or results of operations.

The Company evaluates, on a quarterly basis, developments in legal proceedings and other matters that could cause an increase or decrease in the amount of the liability that is accrued, if any, and any related insurance reimbursements. As of June 30, 2024 and December 31, 2023, $0.4 million and $0.3 million, respectively, of loss contingencies were included in the Company’s accompanying condensed consolidated balance sheets.

13. ACCUMULATED OTHER COMPREHENSIVE LOSS

Changes in accumulated other comprehensive loss by component, after tax, for the six-months ended June 30, 2024 and 2023 are as follows:

	Accumulated				Unrealized
	Net Gains		Currency		Gains (Losses)
	(Losses) on		Translation		on Available-
	Commodity		Gains		for-Sale
	Derivatives		(Losses)		Securities		Total
Balance at December 31, 2023	$	4,410	$	(128,989)	$	(758)	$	(125,337)
Other comprehensive income (loss) before reclassifications		4,074		(61,799)		758		(56,967)
Net current-period other comprehensive income (loss)		4,074		(61,799)		758		(56,967)
Balance at June 30, 2024	$	8,484	$	(190,788)	$	—	$	(182,304)

	Accumulated				Unrealized
	Net Gains		Currency		Gains (Losses)
	(Losses) on		Translation		on Available-
	Commodity		Gains		for-Sale
	Derivatives		(Losses)		Securities		Total
Balance at December 31, 2022	$	—	$	(153,230)	$	(5,843)	$	(159,073)
Other comprehensive income (loss) before reclassifications		(1,266)		2,206		2,408		3,348
Net current-period other comprehensive income (loss)		(1,266)		2,206		2,408		3,348
Balance at June 30, 2023	$	(1,266)	$	(151,024)	$	(3,435)	$	(155,725)

14. TREASURY STOCK

On November 2, 2022, the Company’s Board of Directors authorized a share repurchase program for the purchase of up to an additional $500.0 million of the Company’s outstanding common stock (the “November 2022 Repurchase Plan”). During the three-months ended June 30, 2024, the Company repurchased approximately 2.2 million shares of its common stock at an average purchase price of $49.55 per share, for a total amount of approximately $107.7 million (excluding broker commissions), under the November 2022 Repurchase Plan. Subsequent to June 30, 2024, the Company repurchased approximately 0.7 million shares of its common stock at an average purchase price of $49.82 per share, for a total amount of approximately $34.7 million (excluding broker commissions), under the November 2022 Repurchase Plan. As of August 6, 2024, no amount remained available for repurchase under the November 2022 Repurchase Plan.

On November 7, 2023, the Company’s Board of Directors authorized a share repurchase program for the purchase of up to an additional $500.0 million of the Company’s outstanding common stock (the “November 2023 Repurchase Plan”). During the three-months ended June 30, 2024, no shares were repurchased under the November 2023 Repurchase Plan. Subsequent to June 30, 2024, the Company repurchased approximately 3.2 million shares of its common stock at an average purchase price of $49.54 per share, for a total

23

MONSTER BEVERAGE CORPORATION AND SUBSIDIARIES

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(Tabular Dollars in Thousands, Except Per Share Amounts) (Unaudited)

amount of approximately $157.6 million (excluding broker commissions), under the November 2023 Repurchase Plan. As of August 6, 2024, $342.4 million remained available for repurchase under the November 2023 Repurchase Plan.

The aggregate amount of the Company’s outstanding common stock that remains available for repurchase under all previously authorized repurchase plans is $342.4 million as of August 6, 2024.

On May 1, 2024, the Board of Directors authorized the Company to execute a modified “Dutch auction” tender offer to repurchase up to $3.0 billion of its outstanding shares of common stock. On May 8, 2024, the Company commenced the tender offer, with such offer expiring on June 5, 2024. On June 10, 2024, the Company accepted for purchase a total of approximately 56.6 million shares of common stock at a purchase price of $53.00 per share, for an aggregate purchase price of approximately $3.0 billion. The repurchase was funded with approximately $2.25 billion of cash on hand and approximately $750 million in borrowings. The cost of these shares and the fees relating to the tender offer are included in common stock in treasury in the accompanying condensed consolidated balance sheet at June 30, 2024.

15. STOCK-BASED COMPENSATION

The Company has two stock-based compensation plans under which shares were available for grant at June 30, 2024: (i) the Monster Beverage Corporation 2020 Omnibus Incentive Plan, including the Monster Beverage Corporation Deferred Compensation Plan as a sub-plan thereunder, and (ii) the Monster Beverage Corporation 2017 Compensation Plan for Non-Employee Directors as Amended and Restated on February 23, 2022, including the Monster Beverage Corporation Deferred Compensation Plan for Non-Employee Directors as a sub-plan thereunder.

The Company recorded $18.8 million and $18.6 million of compensation expense relating to outstanding options, restricted stock units, performance share units and other share-based awards during the three-months ended June 30, 2024 and 2023, respectively. The Company recorded $41.3 million and $34.6 million of compensation expense relating to outstanding options, restricted stock units, performance share units and other share-based awards during the six-months ended June 30, 2024 and 2023, respectively.

The tax benefit for tax deductions from non-qualified stock option exercises, disqualifying dispositions of incentive stock options and vesting of restricted stock units and performance share units for the three-months ended June 30, 2024 and 2023 was $1.5 million and $4.1 million, respectively. The tax benefit for tax deductions from non-qualified stock option exercises, disqualifying dispositions of incentive stock options and vesting of restricted stock units and performance share units for the six-months ended June 30, 2024 and 2023 was $9.0 million and $30.0 million, respectively.

Stock Options

Under the Company’s stock-based compensation plans, all stock options granted as of June 30, 2024 were granted at prices based on the fair value of the Company’s common stock on the date of grant. The Company records compensation expense for stock options based on the estimated fair value of the options on the date of grant using the Black-Scholes-Merton option pricing formula with the assumptions included in the table below. The Company uses historical data to determine the exercise behavior, volatility and forfeiture rate of the options.

The following weighted-average assumptions were used to estimate the fair value of options granted during:

	Three-Months Ended June 30,				Six-Months Ended June 30,
	2024		2023		2024		2023
Dividend yield	0.0	%	0.0	%	0.0	%	0.0	%
Expected volatility	27.5	%	27.4	%	27.5	%	27.6	%
Risk-free interest rate	4.4	%	3.7	%	4.3	%	3.7	%
Expected term	6.4	years	6.3	years	6.4	years	6.3	years

24

MONSTER BEVERAGE CORPORATION AND SUBSIDIARIES

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(Tabular Dollars in Thousands, Except Per Share Amounts) (Unaudited)

Expected Volatility: The Company uses historical volatility as it provides a reasonable estimate of the expected volatility. Historical volatility is based on the most recent volatility of the stock price over a period of time equivalent to the expected term of the option.

Risk-Free Interest Rate: The risk-free interest rate is based on the U.S. treasury zero-coupon yield curve in effect at the time of grant for the expected term of the option.

Expected Term: The Company’s expected term represents the weighted-average period that the Company’s stock options are expected to be outstanding. The expected term is based on the expected time to post-vesting exercise of options by employees. The Company uses historical exercise patterns of previously granted options to derive employee behavioral patterns used to forecast expected exercise patterns.

The following table summarizes the Company’s activities with respect to its stock option plans as follows:

				Weighted-
				Average
		Weighted-		Remaining
	Number of	Average		Contractual
	Shares	Exercise Price		Term	Aggregate
Options	(in thousands)	Per Share		(in years)	Intrinsic Value
Outstanding at January 1, 2024	24,983	$	33.64	5.8	$	598,866
Granted 01/01/24 - 03/31/24	4,332	$	60.29
Granted 04/01/24 - 06/30/24	62	$	51.89
Exercised	(1,914)	$	27.22
Cancelled or forfeited	(165)	$	48.17
Outstanding at June 30, 2024	27,298	$	38.27	6.1	$	366,872
Vested and expected to vest in the future at June 30, 2024	26,202	$	37.70	6.0	$	363,597
Exercisable at June 30, 2024	15,087	$	29.21	4.1	$	313,348

The weighted-average grant-date fair value of options granted during the three-months ended June 30, 2024 and 2023 was $19.52 per share and $21.14 per share, respectively. The weighted-average grant-date fair value of options granted during the six-months ended June 30, 2024 and 2023 was $22.64 per share and $18.25 per share, respectively.

The total intrinsic value of options exercised during the three-months ended June 30, 2024 and 2023 was $10.2 million and $26.9 million, respectively. The total intrinsic value of options exercised during the six-months ended June 30, 2024 and 2023 was $57.8 million and $157.9 million, respectively.

Cash received from option exercises under all plans for the three-months ended June 30, 2024 and 2023 was $13.7 million and $23.3 million, respectively. Cash received from option exercises under all plans for the three-months ended June 30, 2024 and 2023 was $52.1 million and $59.7 million, respectively.

At June 30, 2024, there was $162.4 million of total unrecognized compensation expense related to non-vested options granted to employees under the Company’s stock-based compensation plans. That cost is expected to be recognized over a weighted-average period of 3.4 years.

Restricted Stock Units and Performance Share Units

The cost of stock-based compensation for restricted stock units and performance share units is measured based on the closing fair market value of the Company’s common stock at the date of grant. In the event that the Company has the option and intent to settle a restricted stock unit or performance share unit in cash, the award is classified as a liability and revalued at each balance sheet date.

25

MONSTER BEVERAGE CORPORATION AND SUBSIDIARIES

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(Tabular Dollars in Thousands, Except Per Share Amounts) (Unaudited)

The following table summarizes the Company’s activities with respect to non-vested restricted stock units and performance share units as follows:

	Number of Shares	Weighted Average Grant-
	(in thousands)	Date Fair Value
Non-vested at January 1, 2024	1,964	$	40.95
Granted 01/01/24 - 03/31/241	502	$	57.04
Granted 04/01/24 - 06/30/24	27	$	49.12
Vested	(824)	$	40.69
Forfeited/cancelled	(1)	$	30.62
Non-vested at June 30, 2024	1,668	$	46.06

¹The grant activity for performance share units is recorded based on the target performance level earning 100% of target performance share units. The actual number of performance share units earned could range from 0% to 200% of target depending on the achievement of pre-established performance goals.

The weighted-average grant-date fair value of restricted stock units and/or performance share units granted during the three-months ended June 30, 2024 and 2023 was $49.12 and $59.17 per share, respectively. The weighted-average grant-date fair value of restricted stock units and/or performance share units granted during the six-months ended June 30, 2024 and 2023 was $59.58 and $48.93 per share, respectively.

As of June 30, 2024, 1.6 million of restricted stock units and performance share units are expected to vest over their respective terms.

At June 30, 2024, total unrecognized compensation expense relating to non-vested restricted stock units and performance share units was $43.9 million, which is expected to be recognized over a weighted-average period of 1.6 years.

Other Share-Based Awards

The Company has granted other share-based awards to certain employees that are payable in cash. These awards are classified as liabilities and are valued based on the fair value of the award at the grant date and are remeasured at each reporting date until settlement, with compensation expense being recognized in proportion to the completed requisite service period up until date of settlement. At June 30, 2024, other share-based awards outstanding included grants that vest over three years payable in the first quarters of 2025, 2026 and 2027.

At June 30, 2024, there was $0.1 million of total unrecognized compensation expense related to nonvested other share-based awards granted to employees under the Company’s stock-based compensation plans. That cost is expected to be recognized over a weighted-average period of 0.5 years.

26

MONSTER BEVERAGE CORPORATION AND SUBSIDIARIES

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(Tabular Dollars in Thousands, Except Per Share Amounts) (Unaudited)

16. INCOME TAXES

The following is a roll-forward of the Company’s total gross unrecognized tax benefits, not including interest and penalties, for the six-months ended June 30, 2024:

	Gross Unrecognized
	Tax Benefits
Balance at December 31, 2023	$	3,109
Additions for tax positions related to the current year		—
Additions for tax positions related to the prior years		—
Decreases for tax positions related to the prior years		—
Balance at June 30, 2024	$	3,109

The Company recognizes accrued interest and penalties related to unrecognized tax benefits in the provision for income taxes in the Company’s condensed consolidated financial statements. As of June 30, 2024, the Company had approximately $0.7 million in accrued interest and penalties related to unrecognized tax benefits. If the Company were to prevail on all uncertain tax positions, the resultant impact on the Company’s effective tax rate would not be significant. It is expected that any change in the amount of unrecognized tax benefits within the next 12 months will not be significant.

The Company is subject to U.S. federal income tax as well as to income tax in multiple state and foreign jurisdictions.

The Company is in various stages of examination with certain states and certain foreign jurisdictions. The Company’s 2020 through 2023 U.S. federal income tax returns are subject to examination by the IRS. The Company’s state income tax returns are subject to examination for the 2019 through 2023 tax years. The United Kingdom and Ireland income tax returns are subject to examination for the 2019 through 2023 tax years.

17. EARNINGS PER SHARE

A reconciliation of the weighted-average shares used in the basic and diluted earnings per common share computations is presented below (in thousands):

	Three-Months Ended		Six-Months Ended
	June 30,		June 30,
	2024	2023	2024	2023
Weighted-average shares outstanding:
Basic	1,029,268	1,047,065	1,035,175	1,045,993
Dilutive	8,110	13,028	9,188	13,674
Diluted	1,037,378	1,060,093	1,044,363	1,059,667

For the three-months ended June 30, 2024 and 2023, options and awards outstanding totaling 8.8 million shares and 4.1 million shares, respectively, were excluded from the calculations as their effect would have been antidilutive. For the six-months ended June 30, 2024 and 2023, options and awards outstanding totaling 6.9 million shares and 2.6 million shares, respectively, were excluded from the calculations as their effect would have been antidilutive.

18. SEGMENT INFORMATION

The Company has four operating and reportable segments: (i) Monster Energy® Drinks segment, which is primarily comprised of the Company’s Monster Energy® drinks, Reign Total Body Fuel® high performance energy drinks, Reign Storm® total wellness energy drinks, Bang Energy® drinks and Monster Tour Water®, (ii) Strategic Brands segment, which is primarily comprised of the various energy drink brands acquired from TCCC in 2015 as well as the Company’s affordable energy brands, Predator® and Fury®, (iii) Alcohol Brands segment, which is comprised of various craft beers, hard seltzers and FMBs and (iv) Other segment, which is comprised of the AFF Third-Party Products.

27

MONSTER BEVERAGE CORPORATION AND SUBSIDIARIES

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(Tabular Dollars in Thousands, Except Per Share Amounts) (Unaudited)

The Company’s Monster Energy® Drinks segment primarily generates net operating revenues by selling ready-to-drink packaged drinks primarily to bottlers/distributors. In some cases, the Company sells ready-to-drink packaged drinks directly to retail grocery and specialty chains, wholesalers, club stores, mass merchandisers, convenience and gas chains, drug stores, foodservice customers, value stores, e-commerce retailers and the military.

The Company’s Strategic Brands segment primarily generates net operating revenues by selling “concentrates” and/or “beverage bases” to authorized bottling and canning operations. Such bottlers generally combine the concentrates and/or beverage bases with sweeteners, water and other ingredients to produce ready-to-drink packaged energy drinks. The ready-to-drink packaged energy drinks are then sold by such bottlers to other bottlers/distributors and to retail grocery and specialty chains, wholesalers, club stores, mass merchandisers, convenience and gas chains, foodservice customers, drug stores, value stores, e-commerce retailers and the military. To a lesser extent, the Strategic Brands segment generates net operating revenues by selling certain ready-to-drink packaged energy drinks to bottlers/distributors.

Generally, the Monster Energy® Drinks segment generates higher per case net operating revenues, but lower per case gross profit margin percentages than the Strategic Brands segment.

The Company’s Alcohol Brands segment primarily generates operating revenues by selling kegged and ready-to-drink canned beers, hard seltzers and FMBs primarily to beer distributors in the United States.

Generally, the Alcohol Brands segment has lower gross profit margin percentages than the Monster Energy® Drinks segment.

Corporate and unallocated amounts that do not relate to a reportable segment have been allocated to “Corporate & Unallocated.” No asset information, other than goodwill and other intangible assets, has been provided in the Company’s reportable segments, as management does not measure or allocate such assets on a segment basis.

The net revenues derived from the Company’s reportable segments and other financial information related thereto for the three- and six-months ended June 30, 2024 and 2023 were as follows:

	Three-Months Ended				Six-Months Ended
	June 30,				June 30,
	2024		2023		2024		2023
Net sales:
Monster Energy® Drinks1	$	1,742,808	$	1,686,887	$	3,471,859	$	3,248,555
Strategic Brands		109,222		99,690		217,666		186,048
Alcohol Brands		41,564		61,076		97,634		107,366
Other		7,003		7,308		12,536		11,922
Corporate and unallocated		—		—		—		—
	$	1,900,597	$	1,854,961	$	3,799,695	$	3,553,891

28

MONSTER BEVERAGE CORPORATION AND SUBSIDIARIES

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(Tabular Dollars in Thousands, Except Per Share Amounts) (Unaudited)

	Three-Months Ended				Six-Months Ended
	June 30,				June 30,
	2024		2023		2024		2023
Operating Income:
Monster Energy® Drinks1	$	612,255	$	597,922	$	1,240,377	$	1,158,740
Strategic Brands		61,659		55,137		123,677		106,909
Alcohol Brands		(22,561)		(6,577)		(28,577)		(13,460)
Other		1,418		1,651		2,419		1,358
Corporate and unallocated		(125,608)		(124,328)		(268,742)		(244,677)
	$	527,163	$	523,805	$	1,069,154	$	1,008,870

	Three-Months Ended				Six-Months Ended
	June 30,				June 30,
	2024		2023		2024		2023
Income before tax:
Monster Energy® Drinks1	$	613,401	$	598,656	$	1,242,561	$	1,160,330
Strategic Brands		61,672		55,149		123,707		106,938
Alcohol Brands		(22,657)		(6,584)		(28,672)		(13,451)
Other		1,431		1,657		2,447		1,364
Corporate and unallocated		(102,308)		(109,914)		(210,758)		(218,658)
	$	551,539	$	538,964	$	1,129,285	$	1,036,523

(1) Includes $10.0 million for both the three-months ended June 30, 2024 and 2023, related to the recognition of deferred revenue. Includes $19.9 million for both the six-months ended June 30, 2024 and 2023, related to the recognition of deferred revenue.

	Three-Months Ended				Six-Months Ended
	June 30,				June 30,
	2024		2023		2024		2023
Depreciation and amortization:
Monster Energy® Drinks	$	13,105	$	8,817	$	25,713	$	17,806
Strategic Brands		224		196		453		417
Alcohol Brands		3,668		4,106		7,406		8,157
Other		57		51		97		1,174
Corporate and unallocated		2,384		2,406		6,244		4,830
	$	19,438	$	15,576	$	39,913	$	32,384

Corporate and unallocated expenses for the three-months ended June 30, 2024 include $87.5 million of payroll costs, of which $17.8 million was attributable to stock-based compensation expenses (see Note 15 “Stock-Based Compensation”), as well as $14.5 million attributable to professional service expenses, including accounting and legal costs, and $23.6 million of other operating expenses.

Corporate and unallocated expenses for the three-months ended June 30, 2023 include $82.6 million of payroll costs, of which $18.1 million was attributable to stock-based compensation expenses (see Note 15 “Stock-Based Compensation”), as well as $25.3 million attributable to professional service expenses, including accounting and legal costs, and $16.4 million of other operating expenses.

Corporate and unallocated expenses for the six-months ended June 30, 2024 include $186.1 million of payroll costs, of which $39.7 million was attributable to stock-based compensation expenses (see Note 15 “Stock-Based Compensation”), as well as $34.5 million attributable to professional service expenses, including accounting and legal costs, and $48.1 million of other operating expenses.

Corporate and unallocated expenses for the six-months ended June 30, 2023 include $162.9 million of payroll costs, of which $33.8 million was attributable to stock-based compensation expenses (see Note 15 “Stock-Based Compensation”), as well as $47.4 million attributable to professional service expenses, including accounting and legal costs, and $34.4 million of other operating expenses.

29

MONSTER BEVERAGE CORPORATION AND SUBSIDIARIES

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(Tabular Dollars in Thousands, Except Per Share Amounts) (Unaudited)

Coca-Cola Europacific Partners accounted for approximately 14% of the Company’s net sales for both the three-months ended June 30, 2024 and 2023. Coca-Cola Europacific Partners accounted for approximately 14% and 13% of the Company’s net sales for the six-months ended June 30, 2024 and 2023, respectively.

Coca-Cola Consolidated, Inc. accounted for approximately 11% and 10% of the Company’s net sales for the three-months ended June 30, 2024 and 2023, respectively. Coca-Cola Consolidated, Inc. accounted for approximately 10% of the Company’s net sales for both the six-months ended June 30, 2024 and 2023.

Reyes Holdings, LLC accounted for approximately 10% of the Company’s net sales for both the three-months ended June 30, 2024 and 2023. Reyes Holdings, LLC accounted for approximately 9% and 10% of the Company’s net sales for the six-months ended June 30, 2024 and 2023, respectively.

Net sales to customers outside the United States amounted to $746.0 million and $715.4 million for the three-months ended June 30, 2024 and 2023, respectively. Such sales were approximately 39% of net sales for both the three-months ended June 30, 2024 and 2023. Net sales to customers outside the United States amounted to $1.49 billion and $1.34 billion for the six-months ended June 30, 2024 and 2023, respectively. Such sales were approximately 39% and 38% of net sales for the six-months ended June 30, 2024 and 2023, respectively.

Goodwill and other intangible assets for the Company’s reportable segments were as follows at:

	June 30,		December 31,
	2024		2023
Goodwill and other intangible assets:
Monster Energy® Drinks	$	1,671,799	$	1,663,814
Strategic Brands		982,435		982,471
Alcohol Brands		197,033		198,795
Other		—		—
	$	2,851,267	$	2,845,080

19. RELATED PARTY TRANSACTIONS

TCCC controls approximately 20.9% of the voting interests of the Company. The TCCC Subsidiaries, the TCCC Related Parties and certain TCCC independent bottlers, purchase and distribute the Company’s products in domestic and certain international markets. The Company also pays TCCC a commission based on certain sales within the TCCC distribution network.

TCCC commissions, based on sales to the TCCC Subsidiaries and the TCCC Related Parties, were $19.8 million and $18.1 million for the three-months ended June 30, 2024 and 2023, respectively, and are included as a reduction to net sales. TCCC commissions, based on sales to the TCCC Subsidiaries and the TCCC Related Parties, were $42.3 million and $33.8 million for the six-months ended June 30, 2024 and 2023, respectively, and are included as a reduction to net sales.

TCCC commissions, based on sales to TCCC independent bottlers, were $8.7 million and $8.1 million for the three-months ended June 30, 2024 and 2023, respectively, and are included in operating expenses. TCCC commissions, based on sales to TCCC independent bottlers, were $18.4 million and $16.9 million for the six-months ended June 30, 2024 and 2023, respectively, and are included in operating expenses.

Net sales to the TCCC Subsidiaries for the three-months ended June 30, 2024 and 2023 were $55.5 million and $33.2 million, respectively. Net sales to the TCCC Subsidiaries for the six-months ended June 30, 2024 and 2023 were $97.2 million and $68.3 million, respectively.

The Company also purchases concentrates from TCCC which are then sold to certain of the Company’s bottlers/distributors. Concentrate purchases from TCCC were $6.9 million and $8.3 million for the three-months ended June 30, 2024 and 2023, respectively. Concentrate purchases from TCCC were $14.9 million and $14.8 million for the six-months ended June 30, 2024 and 2023, respectively.

30

MONSTER BEVERAGE CORPORATION AND SUBSIDIARIES

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(Tabular Dollars in Thousands, Except Per Share Amounts) (Unaudited)

Certain TCCC Subsidiaries also contract manufacture certain of the Company’s energy drinks. Such contract manufacturing expenses were $9.6 million and $7.5 million for the three-months ended June 30, 2024 and 2023, respectively. Such contract manufacturing expenses were $18.6 million and $15.0 million for the six-months ended June 30, 2024 and 2023, respectively.

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

	June 30,		December 31,
	2024		2023
Accounts receivable, net	$	110,998	$	135,246
Accounts payable	$	(51,756)	$	(68,386)
Accrued promotional allowances	$	(14,169)	$	(13,794)
Accrued liabilities	$	(20,375)	$	(19,745)

One director of the Company through certain trusts, and a family member of one director are the 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, 2024 and 2023 were $1.7 million and $1.0 million, respectively. Expenses incurred with such company in connection with promotional materials purchased during the six-months ended June 30, 2024 and 2023 were $3.6 million and $2.1 million, respectively.

The Company occasionally charters a private aircraft that is indirectly owned by Mr. Rodney C. Sacks, Co-Chief Executive Officer and Chairman of the Board of Directors. On certain occasions, Mr. Sacks is accompanied by guests and other Company personnel when using such aircraft for business travel. During both the three-months ended June 30, 2024 and 2023, the Company incurred expense of $0.03 million in relation to the aircraft. During both the six-months ended June 30, 2024 and 2023, the Company incurred expense of $0.03 million in relation to the aircraft.

In December 2018, the Company and a director of the Company entered into a 50-50 partnership that purchased land, and real property thereon, in Kona, Hawaii for the purpose of producing coffee products. In October 2023, the partnership made a special, one-time distribution to each of the partners, reflecting the amount of their initial capital contributions. This partnership meets the definition of a Variable Interest Entity (“VIE”) for which the Company has determined that it is the primary beneficiary. Therefore, the Company consolidates the VIE in the accompanying consolidated financial statements. The aggregate carrying values of the VIE’s assets and liabilities, after elimination of any intercompany transactions and balances, as well as the results of operations for all periods presented, are not material to the Company’s condensed consolidated financial statements.

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ITEM 2.  MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS

Our Business

When this report uses the words “the Company”, “we”, “us”, and “our”, these words refer to Monster Beverage Corporation and its subsidiaries, unless the context otherwise requires. Based in Corona, California, Monster Beverage Corporation is a holding company and conducts no operating business except through its consolidated subsidiaries. The Company’s subsidiaries primarily develop and market energy drinks, and to a lesser extent, craft beers, hard seltzers and flavored malt beverages (“FMBs”).

Stock Repurchase

On May 1, 2024, the Board of Directors authorized the Company to execute a modified “Dutch auction” tender offer to repurchase up to $3.0 billion of its outstanding shares of common stock. On May 8, 2024, the Company commenced the tender offer, with such offer expiring on June 5, 2024. On June 10, 2024, the Company accepted for purchase a total of approximately 56.6 million shares of common stock at a purchase price of $53.00 per share, for an aggregate purchase price of approximately $3.0 billion. The repurchase was funded with approximately $2.25 billion of cash on hand and approximately $750 million in borrowings. The cost of these shares and the fees relating to the tender offer are included in common stock in treasury in the accompanying condensed consolidated balance sheet at June 30, 2024.

Pricing Actions

We implemented price increases at various times in certain international markets during the third and fourth quarters of 2023 as well as the first and second quarters of 2024 (collectively, the “Pricing Actions”), all of which positively impacted net sales and gross profit margins in the second quarter of 2024 as compared to the second quarter of 2023.

The Company currently anticipates implementing price increases in the United States, at amounts yet to be determined, on certain of its Monster Energy® brand energy drinks in the fourth quarter of 2024.

Overview

We develop, market, sell and distribute energy drink beverages and concentrates for energy drink beverages, primarily under the following brand names:

●      Monster Energy®	●      Burn®
●      Monster Energy Ultra®	●      Mother®
●      Monster Rehab®	●      Nalu®
●      Monster Energy® Nitro	●      Ultra Energy®
●      Java Monster®	●      Play® and Power Play® (stylized)
●      Punch Monster®	●      Relentless®
●      Juice Monster®	●      BPM®
●      Reign Total Body Fuel®	●      BU®
●      Reign Inferno® Thermogenic Fuel	●      Gladiator®
●      Reign Storm®	●      Samurai®
●      Bang Energy®	●      Live+®
●      NOS®	●      Predator®
●      Full Throttle®	●      Fury®

We also develop, market, sell and distribute craft beers, FMBs and hard seltzers under a number of brands, including Jai Alai® IPA, Florida Man^TM IPA, Dale’s Pale Ale®, Wild Basin® Hard Seltzers, Dallas Blonde®, Deep Ellum^TM IPA, Perrin Brewing Company^TM Black Ale, Hop Rising® Double IPA, Wasatch® Apricot Hefeweizen, The Beast Unleashed®, Nasty Beast^TM Hard Tea and a host of other brands.

We also develop, market, sell and distribute still and sparkling waters under the Monster Tour Water® brand name.

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We have four operating and reportable segments: (i) Monster Energy® Drinks segment (“Monster Energy® Drinks”), which is primarily comprised of our Monster Energy® drinks, Reign Total Body Fuel® high performance energy drinks, Reign Storm® total wellness energy drinks, Bang Energy® drinks and Monster Tour Water®, (ii) Strategic Brands segment (“Strategic Brands”), which is primarily comprised of the various energy drink brands acquired from The Coca-Cola Company (“TCCC”) in 2015 as well as our affordable energy brands, Predator® and Fury®, (iii) Alcohol Brands segment (“Alcohol Brands”), which is comprised of various craft beers, hard seltzers and FMBs and (iv) Other segment (“Other”), which is comprised of certain products sold by American Fruits and Flavors LLC, a wholly-owned subsidiary of the Company, to independent third-party customers (the “AFF Third-Party Products”).

During the three-months ended June 30, 2024, we continued to expand our existing drink portfolio by adding additional products to our portfolio in a number of countries and further developed our distribution markets. Due to the planned timing of product innovations, there were no new products launched during the three-months ended June 30, 2024. In the third quarter of 2024, we plan to launch the following new products to our customers:

● Monster Energy® Ultra Vice Guava^TM

● The Beast Unleashed® Gnarly Grape^TM

● The Beast Unleashed® Killer Sunrise^TM

● The Beast Unleashed® Pink Poison^TM

In the normal course of business, we discontinue certain products and/or product lines. Those products or product lines discontinued in the three-months ended June 30, 2024, either individually or in aggregate, did not have a material adverse impact on our financial position, results of operations or liquidity.

Our net sales of $1.90 billion for the three-months ended June 30, 2024 represented record sales for our second fiscal quarter. Net changes in foreign currency exchange rates had an unfavorable impact on net sales of approximately $67.7 million ($34.0 million related to Argentina) for the three-months ended June 30, 2024. Net sales on a foreign currency adjusted basis increased 6.1% (4.3% exclusive of Argentina’s impact) for the three-months ended June 30, 2024.

The vast majority of our net sales are derived from our Monster Energy® Drinks segment. Net sales of our Monster Energy® Drinks segment were $1.74 billion for the three-months ended June 30, 2024. Net sales of our Strategic Brands segment were $109.2 million for the three-months ended June 30, 2024. Net sales of our Alcohol Brands segment were $41.6 million for the three-months ended June 30, 2024. Net sales of our Other segment were $7.0 million for the three-months ended June 30, 2024.

Our Monster Energy® Drinks segment represented 91.7% and 90.9% of our net sales for the three-months ended June 30, 2024 and 2023, respectively. Our Strategic Brands segment represented 5.7% and 5.4% of our net sales for the three-months ended June 30, 2024 and 2023, respectively. Our Alcohol Brands segment represented 2.2% and 3.3% of our net sales for the three-months ended June 30, 2024 and 2023, respectively. Our Other segment represented 0.4% of our net sales for both the three-months ended June 30, 2024 and 2023.

Our growth strategy includes further developing our domestic markets, expanding our international business and growing our business into new sectors, such as the alcohol beverage sector. Net sales to customers outside the United States were $746.0 million for the three-months ended June 30, 2024, an increase of approximately $30.7 million, or 4.3% higher than net sales to customers outside of the United States of $715.4 million for the three-months ended June 30, 2023. Such sales were approximately 39% of net sales for both the three-months ended June 30, 2024 and 2023. Net changes in foreign currency exchange rates had an unfavorable impact on net sales to customers outside of the United States of approximately $67.7 million ($34.0 million related to Argentina) for the three-months ended June 30, 2024. Net sales to customers outside the United States, on a foreign currency adjusted basis, increased 13.7% (9.0% exclusive of Argentina’s impact) for the three-months ended June 30, 2024.

Our non-alcohol customers are primarily full service beverage bottlers/distributors, retail grocery and specialty chains, wholesalers, club stores, mass merchandisers, convenience and gas chains, foodservice customers, value stores, e-commerce retailers and the military. Our alcohol customers are primarily beer distributors who in turn sell to retailers within the alcohol distribution system. Percentages of our gross billings to our various customer types for the three- and six-months ended June 30, 2024 and 2023 are reflected below. Such information includes sales made by us directly to the customer types concerned, which include our full service beverage bottlers/distributors in the United States. Such full service beverage bottlers/distributors in turn sell certain of our products to some of

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the same customer types listed below. We limit our description of our customer types to include only our sales to our full service bottlers/distributors without reference to such bottlers/distributors’ sales to their own customers.

	Three-Months Ended				Six-Months Ended
	June 30,				June 30,
	2024		2023		2024		2023
U.S. full service bottlers/distributors	46	%	46	%	46	%	47	%
International full service bottlers/distributors	41	%	41	%	41	%	40	%
Club stores and e-commerce retailers	8	%	8	%	8	%	8	%
Retail grocery, direct convenience, specialty chains and wholesalers	2	%	2	%	2	%	2	%
Alcohol, value stores and other	3	%	3	%	3	%	3	%

Our non-alcohol customers include Coca-Cola Canada Bottling Limited, Coca-Cola Consolidated, Inc., Coca-Cola Bottling Company United, Inc., Reyes Holdings, LLC, Coca-Cola Southwest Beverages LLC, The Coca-Cola Bottling Company of Northern New England, Inc., Swire Pacific Holdings, Inc. (USA), Liberty Coca-Cola Beverages, LLC, Coca-Cola Europacific Partners (formerly Coca-Cola European Partners and Coca-Cola Amatil), Coca-Cola Hellenic, Coca-Cola FEMSA, Swire Coca-Cola (China), COFCO Coca-Cola, Coca-Cola Beverages Africa, Coca-Cola İçecek and certain other TCCC network bottlers, Asahi Soft Drinks, Co., Ltd., Wal-Mart, Inc. (including Sam’s Club), Costco Wholesale Corporation and Amazon.com, Inc.

Our alcohol customers include Reyes Beverage Group, Ben E. Keith Company, J.J. Taylor Distributing, and Sheehan Family Companies.

A decision by any large customer to decrease amounts purchased from us or to cease carrying our products could have a material adverse effect on our financial condition and consolidated results of operations.

Coca-Cola Europacific Partners accounted for approximately 14% of our net sales for both the three-months ended June 30, 2024 and 2023. Coca-Cola Europacific Partners accounted for approximately 14% and 13% of our net sales for the six-months ended June 30, 2024 and 2023, respectively.

Coca-Cola Consolidated, Inc. accounted for approximately 11% and 10% of our net sales for the three-months ended June 30, 2024 and 2023, respectively. Coca-Cola Consolidated, Inc. accounted for approximately 10% of our net sales for both the six-months ended June 30, 2024 and 2023.

Reyes Holdings, LLC accounted for approximately 10% of our net sales for both the three-months ended June 30, 2024 and 2023. Reyes Holdings, LLC accounted for approximately 9% and 10% of our net sales for the six-months ended June 30, 2024 and 2023, respectively.

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Results of Operations

The following table sets forth key statistics for the three-and six-months ended June 30, 2024 and 2023.

	Three-Months Ended						Percentage		Six-Months Ended						Percentage
(In thousands, except per share amounts)	June 30,						Change		June 30,						Change
	2024			2023			24 vs. 23		2024			2023			24 vs. 23
Net sales1	$	1,900,597		$	1,854,961		2.5	%	$	3,799,695		$	3,553,891		6.9	%
Cost of sales		881,091			880,739		0.0	%		1,753,061			1,681,820		4.2	%
Gross profit*1		1,019,506			974,222		4.6	%		2,046,634			1,872,071		9.3	%
Gross profit as a percentage of net sales		53.6	%		52.5	%				53.9	%		52.7	%
Operating expenses		492,343			450,417		9.3	%		977,480			863,201		13.2	%
Operating expenses as a percentage of net sales		25.9	%		24.3	%				25.7	%		24.3	%
Operating income1		527,163			523,805		0.6	%		1,069,154			1,008,870		6.0	%
Operating income as a percentage of net sales		27.7	%		28.2	%				28.1	%		28.4	%
Interest and other income, net		24,376			15,159		60.8	%		60,131			27,653		117.4	%
Income before provision for income taxes1		551,539			538,964		2.3	%		1,129,285			1,036,523		8.9	%
Provision for income taxes		126,170			125,093		0.9	%		261,867			225,208		16.3	%
Income taxes as a percentage of income before taxes		22.9	%		23.2	%				23.2	%		21.7	%
Net income	$	425,369		$	413,871		2.8	%	$	867,418		$	811,315		6.9	%
Net income as a percentage of net sales		22.4	%		22.3	%				22.8	%		22.8	%
Net income per common share:
Basic	$	0.41		$	0.40		4.6	%	$	0.84		$	0.78		8.0	%
Diluted	$	0.41		$	0.39		5.0	%	$	0.83		$	0.77		8.5	%
Energy drink case sales (in thousands) (in 192‑ounce case equivalents)		212,194			198,406		6.9	%		423,624			380,850		11.2	%

¹Includes $10.0 million for both the three-months ended June 30, 2024 and 2023, related to the recognition of deferred revenue. Includes $19.9 million for both the six-months ended June 30, 2024 and 2023, related to the recognition of deferred revenue.

*Gross profit may not be comparable to that of other entities since some entities include all costs associated with their distribution process in cost of sales, whereas others exclude certain costs and instead include such costs within another line item such as operating expenses. We include out-bound freight and warehouse costs in operating expenses rather than in cost of sales.

Three-Months Ended June 30, 2024 Compared to the Three-Months Ended June 30, 2023.

Net Sales

Net sales were $1.90 billion for the three-months ended June 30, 2024, an increase of approximately $45.6 million, or 2.5% higher than net sales of $1.85 billion for the three-months ended June 30, 2023. Net sales increased primarily due to increased worldwide sales by volume of our Monster Energy® brand energy drinks as a result of increased consumer demand, as well as due to the Pricing Actions. Net changes in foreign currency exchange rates had an unfavorable impact on net sales of approximately $67.7 million ($34.0 million related to Argentina) for the three-months ended June 30, 2024. Net sales on a foreign currency adjusted basis increased 6.1% (4.3% exclusive of Argentina’s impact) for the three-months ended June 30, 2024.

Net sales were $702.4 million and $670.5 million for the three-months ended June 30, 2024 and 2023, respectively, in EMEA, Asia Pacific (including Oceania), Latin America and the Caribbean. Net changes in foreign currency exchange rates had an unfavorable impact on net sales to customers in EMEA, Asia Pacific (including Oceania), Latin America and the Caribbean of approximately $67.3 million ($34.0 million related to Argentina) for the three-months ended June 30, 2024. Net sales on a foreign currency adjusted basis in EMEA, Asia Pacific (including Oceania), Latin America and the Caribbean increased 14.8% (9.7% exclusive of Argentina’s impact) for the three-months ended June 30, 2024.

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Net sales for the Monster Energy® Drinks segment were $1.74 billion for the three-months ended June 30, 2024, an increase of approximately $55.9 million, or 3.3% higher than net sales of $1.69 billion for the three-months ended June 30, 2023. Net sales for the Monster Energy® Drinks segment increased primarily due to increased worldwide sales by volume of our Monster Energy® brand energy drinks as a result of increased consumer demand as well as due to the Pricing Actions. Net changes in foreign currency exchange rates had an unfavorable impact on net sales for the Monster Energy® Drinks segment of approximately $53.6 million ($34.0 million related to Argentina) for the three-months ended June 30, 2024. Net sales for the Monster Energy® Drinks segment on a foreign currency adjusted basis increased 6.5% (4.5% exclusive of Argentina’s impact) for the three-months ended June 30, 2024.

Net sales for the Strategic Brands segment were $109.2 million for the three-months ended June 30, 2024, an increase of approximately $9.5 million, or 9.6% higher than net sales of $99.7 million for the three-months ended June 30, 2023. Net sales for the Strategic Brands segment increased primarily due to increased sales by volume of our NOS®, Burn® and Predator® brand energy drinks. Net changes in foreign currency exchange rates had an unfavorable impact on net sales of approximately $14.0 million for the Strategic Brands segment for the three-months ended June 30, 2024. Net sales for the Strategic Brands segment on a foreign currency adjusted basis increased 23.6% for the three-months ended June 30, 2024. Net sales of concentrates within the Strategic Brands segment tend to have more pronounced fluctuations from period to period as compared to net sales of our finished goods within the Monster Energy® Drinks segment.

Net sales for the Alcohol Brands segment were $41.6 million for the three-months ended June 30, 2024, a decrease of approximately $19.5 million, or 31.9% lower than net sales of $61.1 million for the three-months ended June 30, 2023. The decrease in net sales for the three-months ended June 30, 2024 was primarily due to decreased sales by volume of FMBs.

Net sales for the Other segment were $7.0 million for the three-months ended June 30, 2024, a decrease of approximately $0.3 million, or 4.2% lower than net sales of $7.3 million for the three-months ended June 30, 2023.

Case sales for our energy drink products, in 192-ounce case equivalents, were 212.2 million cases for the three-months ended June 30, 2024, an increase of approximately 13.8 million cases or 6.9% higher than case sales of 198.4 million cases for the three-months ended June 30, 2023. The overall average net sales per case for our energy drink products (excluding net sales of Alcohol Brands and Other segments) decreased to $8.73 for the three-months ended June 30, 2024, which was 3.1% lower than the average net sales per case of $9.00 for the three-months ended June 30, 2023. The decrease in overall average net sales per case for our energy drink products for the three-months ended June 30, 2024 compared to the three-months ended June 30, 2023 was primarily due to geographical/product sales mix.

Case sales for our craft beers, hard seltzers and FMBs, in 192-ounce equivalents, were 3.0 million cases for the three-months ended June 30, 2024, a decrease of approximately 1.4 million cases or 31.6% lower than case sales of 4.4 million cases for the three-months ended June 30, 2023. Barrel sales for our craft beers, hard seltzers and FMBs, in 31 U.S. gallon equivalents, were 0.15 million barrels for the three-months ended June 30, 2024, a decrease of approximately 0.07 million barrels or 31.6% lower than barrel sales of 0.21 million barrels for the three-months ended June 30, 2023.

Gross Profit

Gross profit was $1.02 billion for the three-months ended June 30, 2024, an increase of approximately $45.3 million, or 4.6% higher than the gross profit of $974.2 million for the three-months ended June 30, 2023. The increase in gross profit dollars was primarily the result of the $45.6 million increase in net sales for the three-months ended June 30, 2024.

Gross profit as a percentage of net sales increased to 53.6% for the three-months ended June 30, 2024 from 52.5% for the three-months ended June 30, 2023. The increase in gross profit as a percentage of net sales for the three-months ended June 30, 2024 was primarily the result of decreased freight-in costs, the Pricing Actions and lower aluminum can costs, partially offset by production inefficiencies.

Operating Expenses

Total operating expenses were $492.3 million for the three-months ended June 30, 2024, an increase of approximately $41.9 million, or 9.3% higher than total operating expenses of $450.4 million for the three-months ended June 30, 2023.

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The increase in operating expenses was primarily due to increased selling and marketing expenses of $19.6 million (primarily sponsorships and endorsements), increased payroll expenses of $12.0 million and increased distribution expenses (including storage and warehouse) of $5.4 million. Operating expenses as a percentage of net sales for the three-months ended June 30, 2024 were 25.9% as compared to 24.3% for the three-months ended June 30, 2023.

Operating Income

Operating income was $527.2 million for the three-months ended June 30, 2024, an increase of approximately $3.4 million, or 0.6% higher than operating income of $523.8 million for the three-months ended June 30, 2023. Operating income as a percentage of net sales decreased to 27.7% for the three-months ended June 30, 2024 from 28.2% for the three-months ended June 30, 2023.

Operating income was $145.8 million and $114.2 million for the three-months ended June 30, 2024 and 2023, respectively, for our operations in EMEA, Asia Pacific (including Oceania), Latin America and the Caribbean.

Operating income for the Monster Energy® Drinks segment, exclusive of corporate and unallocated expenses, was $612.3 million for the three-months ended June 30, 2024, an increase of approximately $14.3 million, or 2.4% higher than operating income of $597.9 million for the three-months ended June 30, 2023. The increase in operating income for the Monster Energy® Drinks segment was primarily the result of an increase in net sales as well as an increase in gross profit as a percentage of net sales.

Operating income for the Strategic Brands segment, exclusive of corporate and unallocated expenses, was $61.7 million for the three-months ended June 30, 2024, an increase of approximately $6.5 million, or 11.8% higher than operating income of $55.1 million for the three-months ended June 30, 2023. The increase in operating income for the Strategic Brands segment was primarily the result of an increase in net sales.

Operating loss for the Alcohol Brands segment, exclusive of corporate and unallocated expenses, was $22.6 million for the three-months ended June 30, 2024, an increase of approximately $16.0 million, or 243.0% higher than the operating loss of $6.6 million for the three-months ended June 30, 2023. The increase in operating losses for the three-months ended June 30, 2024 was primarily due to a decrease in net sales as well as an $8.1 million loss on impairment and disposal of property and equipment.

Operating income for the Other segment, exclusive of corporate and unallocated expenses, was $1.4 million for the three-months ended June 30, 2024, as compared to operating income of $1.7 million for the three-months ended June 30, 2023. The decrease in operating income for the three-months ended June 30, 2024 was primarily the result of a decrease in net sales.

Interest and Other Income, net

Interest and other non-operating income, net, was $24.4 million for the three-months ended June 30, 2024, as compared to interest and other non-operating income, net, of $15.2 million for the three-months ended June 30, 2023. Foreign currency transaction losses were $8.0 million and $14.2 million for the three-months ended June 30, 2024 and 2023, respectively. Interest income was $38.2 million and $29.4 million for the three-months ended June 30, 2024 and 2023, respectively. Interest expense was $4.9 million and $0.1 million for the three-months ended June 30, 2024 and 2023, respectively.

Provision for Income Taxes

Provision for income taxes was $126.2 million for the three-months ended June 30, 2024, an increase of $1.1 million, or 0.9% higher than the provision for income taxes of $125.1 million for the three-months ended June 30, 2023. The effective combined federal, state and foreign tax rate decreased to 22.9% from 23.2% for the three-months ended June 30, 2024 and 2023, respectively. The decrease in the effective tax rate was primarily attributable to an increase in deductible interest expense in the three-months ended June 30, 2024 as compared to the three-months ended June 30, 2023.

Net Income

Net income was $425.4 million for the three-months ended June 30, 2024, an increase of $11.5 million, or 2.8% higher than net income of $413.9 million for the three-months ended June 30, 2023. The increase in net income for the three-months ended June 30, 2024 was primarily due to the increase in net sales and the increase in the gross profit percentage of net sales, which was partially offset by the increase in operating expenses.

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Six-Months Ended June 30, 2024 Compared to the Six-Months Ended June 30, 2023.

Net Sales

Net sales were $3.80 billion for the six-months ended June 30, 2024, an increase of approximately $245.8 million, or 6.9% higher than net sales of $3.55 billion for the six-months ended June 30, 2023. Net sales increased primarily due to increased worldwide sales by volume of our Monster Energy® brand energy drinks as a result of increased consumer demand, as well as due to the Pricing Actions. Net changes in foreign currency exchange rates had an unfavorable impact on net sales of approximately $132.0 million ($84.4 million related to Argentina) for the six-months ended June 30, 2024. Net sales on a foreign currency adjusted basis increased 10.6% (8.3% exclusive of Argentina’s impact) for the six-months ended June 30, 2024.

Net sales were $1.40 billion and $1.25 billion for the six-months ended June 30, 2024 and 2023, respectively, in EMEA, Asia Pacific (including Oceania), Latin America and the Caribbean. Net changes in foreign currency exchange rates had an unfavorable impact on net sales to customers in EMEA, Asia Pacific (including Oceania), Latin America and the Caribbean of approximately $131.9 million ($84.4 million related to Argentina) for the six-months ended June 30, 2024. Net sales on a foreign currency adjusted basis in EMEA, Asia Pacific (including Oceania), Latin America and the Caribbean increased 21.8% (15.1% exclusive of Argentina’s impact) for the six-months ended June 30, 2024.

Net sales for the Monster Energy® Drinks segment were $3.47 billion for the six-months ended June 30, 2024, an increase of approximately $223.3 million, or 6.9% higher than net sales of $3.25 billion for the six-months ended June 30, 2023. Net sales for the Monster Energy® Drinks segment increased primarily due to increased worldwide sales by volume of our Monster Energy® brand energy drinks as a result of increased consumer demand as well as due to the Pricing Actions. Net changes in foreign currency exchange rates had an unfavorable impact on net sales for the Monster Energy® Drinks segment of approximately $108.2 million ($84.4 million related to Argentina) for the six-months ended June 30, 2024. Net sales for the Monster Energy® Drinks segment on a foreign currency adjusted basis increased 10.2% (7.6% exclusive of Argentina’s impact) for the six-months ended June 30, 2024.

Net sales for the Strategic Brands segment were $217.7 million for the six-months ended June 30, 2024, an increase of approximately $31.6 million, or 17.0% higher than net sales of $186.0 million for the six-months ended June 30, 2023. Net sales for the Strategic Brands segment increased primarily due to increased sales by volume of our Fury®, NOS®, Burn® and Predator® brand energy drinks. Net changes in foreign currency exchange rates had an unfavorable impact on net sales of approximately $23.8 million for the Strategic Brands segment for the six-months ended June 30, 2024. Net sales for the Strategic Brands segment on a foreign currency adjusted basis increased 29.8% for the six-months ended June 30, 2024. Net sales of concentrates within the Strategic Brands segment tend to have more pronounced fluctuations from period to period as compared to net sales of our finished goods within the Monster Energy® Drinks segment.

Net sales for the Alcohol Brands segment were $97.6 million for the six-months ended June 30, 2024, a decrease of approximately $9.7 million, or 9.1% lower than net sales of $107.4 million for the six-months ended June 30, 2023. The decrease in net sales for the six-months ended June 30, 2024 was primarily due to decreased sales by volume of FMBs.

Net sales for the Other segment were $12.5 million for the six-months ended June 30, 2024, an increase of approximately $0.6 million, or 5.2% higher than net sales of $11.9 million for the six-months ended June 30, 2023.

Case sales for our energy drink products, in 192-ounce case equivalents, were 423.6 million cases for the six-months ended June 30, 2024, an increase of approximately 42.8 million cases or 11.2% higher than case sales of 380.8 million cases for the six-months ended June 30, 2023. The overall average net sales per case for our energy drink products (excluding net sales of Alcohol Brands and Other segments) decreased to $8.71 for the six-months ended June 30, 2024, which was 3.4% lower than the average net sales per case of $9.02 for the six-months ended June 30, 2023. The decrease in overall average net sales per case for our energy drink products for the six-months ended June 30, 2024 compared to the six-months ended June 30, 2023 was primarily due to geographical/product sales mix.

Case sales for our craft beers, hard seltzers and FMBs, in 192-ounce equivalents, were 7.1 million cases for the six-months ended June 30, 2024, a decrease of approximately 0.4 million cases or 5.6% lower than case sales of 7.5 million cases for the six-months ended June 30, 2023. Barrel sales for our craft beers, hard seltzers and FMBs, in 31 U.S. gallon equivalents, were 0.34 million barrels for the six-months ended June 30, 2024, a decrease of approximately 0.03 million barrels or 5.6% lower than barrel sales of 0.37 million barrels for the six-months ended June 30, 2023.

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Gross Profit

Gross profit was $2.05 billion for the six-months ended June 30, 2024, an increase of approximately $174.6 million, or 9.3% higher than the gross profit of $1.87 billion for the six-months ended June 30, 2023. The increase in gross profit dollars was primarily the result of the $245.8 million increase in net sales for the six-months ended June 30, 2024.

Gross profit as a percentage of net sales increased to 53.9% for the six-months ended June 30, 2024 from 52.7% for the six-months ended June 30, 2023. The increase in gross profit as a percentage of net sales for the six-months ended June 30, 2024 was primarily the result of decreased freight-in costs, the Pricing Actions and lower aluminum can costs, partially offset by geographical/product sales mix.

Operating Expenses

Total operating expenses were $977.5 million for the six-months ended June 30, 2024, an increase of approximately $114.3 million, or 13.2% higher than total operating expenses of $863.2 million for the six-months ended June 30, 2023.

The increase in operating expenses was primarily due to increased selling and marketing expenses of $45.0 million (primarily sponsorships and endorsements), increased payroll expenses of $34.6 million, as well as increased distribution expenses (including storage and warehouse) of $23.5 million. Operating expenses as a percentage of net sales for the six-months ended June 30, 2024 were 25.7% as compared to 24.3% for the six-months ended June 30, 2023.

Operating Income

Operating income was $1.07 billion for the six-months ended June 30, 2024, an increase of approximately $60.3 million, or 6.0% higher than operating income of $1.01 billion for the six-months ended June 30, 2023. The increase in operating income was primarily the result of an increase in net sales, as well as an increase in gross profit as a percentage of net sales, partially offset by an increase in operating expenses. Operating income as a percentage of net sales decreased to 28.1% for the six-months ended June 30, 2024 from 28.4% for the six-months ended June 30, 2023.

Operating income was $283.7 million and $207.9 million for the six-months ended June 30, 2024 and 2023, respectively, for our operations in EMEA, Asia Pacific (including Oceania), Latin America and the Caribbean.

Operating income for the Monster Energy® Drinks segment, exclusive of corporate and unallocated expenses, was $1.24 billion for the six-months ended June 30, 2024, an increase of approximately $81.6 million, or 7.0% higher than operating income of $1.16 billion for the six-months ended June 30, 2023. The increase in operating income for the Monster Energy® Drinks segment was primarily the result of an increase in net sales as well as an increase in gross profit as a percentage of net sales.

Operating income for the Strategic Brands segment, exclusive of corporate and unallocated expenses, was $123.7 million for the six-months ended June 30, 2024, an increase of approximately $16.8 million, or 15.7% higher than operating income of $106.9 million for the six-months ended June 30, 2023. The increase in operating income for the Strategic Brands segment was primarily the result of an increase in net sales.

Operating loss for the Alcohol Brands segment, exclusive of corporate and unallocated expenses, was $28.6 million for the six-months ended June 30, 2024, an increase of approximately $15.1 million, or 112.3% higher than operating loss of $13.5 million for the six-months ended June 30, 2023. The operating losses for the six-months ended June 30, 2024 were primarily due to a decrease in net sales as well as an $8.1 million loss on impairment and disposal of property and equipment.

Operating income for the Other segment, exclusive of corporate and unallocated expenses, was $2.4 million for the six-months ended June 30, 2024, as compared to operating income of $1.4 million for the six-months ended June 30, 2023. The operating income for the six-months ended June 30, 2024 was primarily the result of an increase in net sales.

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Interest and Other Income, net

Interest and other non-operating income, net, was $60.1 million for the six-months ended June 30, 2024, as compared to interest and other non-operating income, net, of $27.7 million for the six-months ended June 30, 2023. Foreign currency transaction losses were $14.0 million and $25.4 million for the six-months ended June 30, 2024 and 2023, respectively. Interest income was $79.4 million and $52.8 million for the six-months ended June 30, 2024 and 2023, respectively. Interest expense was $5.0 million and $0.2 million for the six-months ended June 30, 2024 and 2023, respectively.

Provision for Income Taxes

Provision for income taxes was $261.9 million for the six-months ended June 30, 2024, an increase of $36.7 million, or 16.3% higher than the provision for income taxes of $225.2 million for the six-months ended June 30, 2023. The effective combined federal, state and foreign tax rate increased to 23.2% from 21.7% for the six-months ended June 30, 2024 and 2023, respectively. The increase in the effective tax rate was primarily attributable to the decrease in the stock-based compensation deduction in the six-months ended June 30, 2024 as compared to the six-months ended June 30, 2023.

Net Income

Net income was $867.4 million for the six-months ended June 30, 2024, an increase of $56.1 million, or 6.9% higher than net income of $811.3 million for the six-months ended June 30, 2023. The increase in net income for the six-months ended June 30, 2024 was primarily due to the increase in net sales and the increase in the gross profit percentage of net sales, which was partially offset by the increase in operating expenses and the increase in the provision for income taxes.

Key Business Metrics

We use certain key metrics and financial measures not prepared in accordance with United States Generally Accepted Accounting Principles (“GAAP”) to evaluate and manage our business. For a further discussion of how we use key metrics and certain non-GAAP financial measures, see “Non-GAAP Financial Measures and Other Key Metrics.”

Non-GAAP Financial Measures and Other Key Metrics

Gross Billings**

Gross billings were $2.22 billion for the three-months ended June 30, 2024, an increase of approximately $76.1 million, or 3.6% higher than gross billings of $2.14 billion for the three-months ended June 30, 2023. Net changes in foreign currency exchange rates had an unfavorable impact on gross billings of approximately $68.6 million ($34.0 million related to Argentina) for the three-months ended June 30, 2024. Gross billings on a foreign currency adjusted basis increased 6.8% (5.2% exclusive of Argentina’s impact) for the three-months ended June 30, 2024.

Gross billings for the Monster Energy® Drinks segment were $2.05 billion for the three-months ended June 30, 2024, an increase of approximately $84.1 million, or 4.3% higher than gross billings of $1.96 billion for the three-months ended June 30, 2023. Gross billings for the Monster Energy® Drinks segment increased primarily due to increased worldwide sales by volume of our Monster Energy® brand energy drinks as a result of increased consumer demand as well as due to the Pricing Actions. Net changes in foreign currency exchange rates had an unfavorable impact on gross billings for the Monster Energy® Drinks segment of approximately $54.6 million ($34.0 million related to Argentina) for the three-months ended June 30, 2024. Gross billings for the Monster Energy® Drinks segment on a foreign currency adjusted basis increased 7.1% (5.3% exclusive of Argentina’s impact) for the three-months ended June 30, 2024.

Gross billings for the Strategic Brands segment were $123.1 million for the three-months ended June 30, 2024, an increase of $11.5 million, or 10.3% higher than gross billings of $111.6 million for the three-months ended June 30, 2023. Gross billings for the Strategic Brands segment increased primarily due to increased sales by volume of our Burn®, NOS® and Predator® brand energy drinks. Net changes in foreign currency exchange rates had an unfavorable impact on gross billings in the Strategic Brands segment of approximately $14.0 million for the three-months ended June 30, 2024. Gross billings for the Strategic Brands segment on a foreign currency adjusted basis increased 22.9% for the three-months ended June 30, 2024.

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Gross billings for the Alcohol Brands segment were $42.9 million for the three-months ended June 30, 2024, a decrease of approximately $19.3 million, or 31.0% lower than gross billings of $62.2 million for the three-months ended June 30, 2023. The decrease in gross billings for the three-months ended June 30, 2024 was primarily due to decreased sales by volume of FMBs.

Gross billings for the Other segment were $7.0 million for the three-months ended June 30, 2024, a decrease of $0.3 million, or 4.0% lower than gross billings of $7.3 million for the three-months ended June 30, 2023.

Promotional allowances, commissions and other expenses, as described in the footnote below, were $327.5 million for the three-months ended June 30, 2024, an increase of $30.4 million, or 10.2% higher than promotional allowances, commissions and other expenses of $297.1 million for the three-months ended June 30, 2023. Promotional allowances, commissions and other expenses as a percentage of gross billings increased to 14.8% from 13.9% for the three-months ended June 30, 2024 and 2023, respectively.

Gross billings were $4.41 billion for the six-months ended June 30, 2024, an increase of approximately $310.0 million, or 7.6% higher than gross billings of $4.10 billion for the six-months ended June 30, 2023. Net changes in foreign currency exchange rates had an unfavorable impact on gross billings of approximately $131.4 million ($84.4 million related to Argentina) for the six-months ended June 30, 2024. Gross billings on a foreign currency adjusted basis increased 10.8% (8.7% exclusive of Argentina’s impact) for the six-months ended June 30, 2024.

Gross billings for the Monster Energy® Drinks segment were $4.05 billion for the six-months ended June 30, 2024, an increase of approximately $283.1 million, or 7.5% higher than gross billings of $3.77 billion for the six-months ended June 30, 2023. Gross billings for the Monster Energy® Drinks segment increased primarily due to increased worldwide sales by volume of our Monster Energy® brand energy drinks as a result of increased consumer demand as well as due to the Pricing Actions. Net changes in foreign currency exchange rates had an unfavorable impact on gross billings for the Monster Energy® Drinks segment of approximately $107.7 million ($84.4 million related to Argentina) for the six-months ended June 30, 2024. Gross billings for the Monster Energy® Drinks segment on a foreign currency adjusted basis increased 10.4% (8.1% exclusive of Argentina’s impact) for the six-months ended June 30, 2024.

Gross billings for the Strategic Brands segment were $245.6 million for the six-months ended June 30, 2024, an increase of $35.4 million, or 16.8% higher than gross billings of $210.3 million for the six-months ended June 30, 2023. Gross billings for the Strategic Brands segment increased primarily due to increased sales by volume of our Fury®, Burn®, NOS® and Predator® brand energy drinks. Net changes in foreign currency exchange rates had an unfavorable impact on gross billings in the Strategic Brands segment of approximately $23.7 million for the six-months ended June 30, 2024. Gross billings for the Strategic Brands segment on a foreign currency adjusted basis increased 28.1% for the six-months ended June 30, 2024.

Gross billings for the Alcohol Brands segment were $100.0 million for the six-months ended June 30, 2024, a decrease of approximately $9.2 million, or 8.5% lower than gross billings of $109.2 million for the six-months ended June 30, 2023. The decrease in gross billings for the six-months ended June 30, 2024 was primarily due to decreased sales by volume of FMBs.

Gross billings for the Other segment were $12.7 million for the six-months ended June 30, 2024, an increase of $0.7 million, or 6.0% higher than gross billings of $12.0 million for the six-months ended June 30, 2023.

Promotional allowances, commissions and other expenses, as described in the footnote below, were $627.2 million for the six-months ended June 30, 2024, an increase of $64.1 million, or 11.4% higher than promotional allowances, commissions and other expenses of $563.2 million for the six-months ended June 30, 2023. Promotional allowances, commissions and other expenses as a percentage of gross billings increased to 14.2% from 13.7% for the six-months ended June 30, 2024 and 2023, respectively.

**Gross Billings represent amounts invoiced to customers net of cash discounts, returns and excise taxes. Gross billings are used internally by management as an indicator of and to monitor operating performance, including sales performance of particular products, salesperson performance, product growth or declines and is useful to investors in evaluating overall Company performance. The use of gross billings allows evaluation of sales performance before the effect of any promotional items, which can mask certain performance issues. We therefore believe that the presentation of gross billings provides a useful measure of our operating performance. The use of gross billings is not a measure that is recognized under GAAP and should not be considered as an alternative to net sales, which is determined in accordance with GAAP, and should not be used alone as an indicator of operating performance in place of net sales. Additionally, gross billings may not be comparable to similarly titled measures used by other companies, as gross billings has been

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defined by our internal reporting practices. In addition, gross billings may not be realized in the form of cash receipts as promotional payments and allowances may be deducted from payments received from certain customers.

The following table reconciles the non-GAAP financial measure of gross billings with the most directly comparable GAAP financial measure of net sales:

	Three-Months Ended				Percentage			Six-Months Ended			Percentage
(In thousands)	June 30,				Change		June 30,				Change
	2024		2023		24 vs. 23		2024		2023		24 vs. 23
Gross Billings	$	2,218,152	$	2,142,095	3.6	%	$	4,407,085	$	4,097,133	7.6	%
Deferred Revenue		9,978		9,985	(0.1)	%		19,853		19,931	(0.4)	%
Less: Promotional allowances, commissions and other expenses***		327,533		297,119	10.2	%		627,243		563,173	11.4	%
Net Sales	$	1,900,597	$	1,854,961	2.5	%	$	3,799,695	$	3,553,891	6.9	%

***Although the expenditures described in this line item are determined in accordance with GAAP and meet GAAP requirements, the presentation thereof does not conform to GAAP presentation requirements. Additionally, our definition of promotional and other allowances may not be comparable to similar items presented by other companies. Promotional and other allowances for our energy drink products primarily include consideration given to our non-alcohol bottlers/distributors or retail customers including, but not limited to the following: (i) discounts granted off list prices to support price promotions to end-consumers by retailers; (ii) reimbursements given to our bottlers/distributors for agreed portions of their promotional spend with retailers, including slotting, shelf space allowances and other fees for both new and existing products; (iii) our agreed share of fees given to bottlers/distributors and/or directly to retailers for advertising, in-store marketing and promotional activities; (iv) our agreed share of slotting, shelf space allowances and other fees given directly to retailers, club stores and/or wholesalers; (v) incentives given to our bottlers/distributors and/or retailers for achieving or exceeding certain predetermined sales goals; (vi) discounted or free products; (vii) contractual fees given to our bottlers/distributors related to sales made by us direct to certain customers that fall within the bottlers’/distributors’ sales territories; and (viii) certain commissions paid based on sales to our bottlers/distributors. The presentation of promotional and other allowances facilitates an evaluation of their impact on the determination of net sales and the spending levels incurred or correlated with such sales. Promotional and other allowances for our energy drink products constitute a material portion of our marketing activities. Our promotional allowance programs for our energy drink products with our numerous bottlers/distributors and/or retailers are executed through separate agreements in the ordinary course of business. These agreements generally provide for one or more of the arrangements described above and are of varying durations, ranging from one week to one year. Promotional and other allowances for our Alcohol Brands segment primarily include price promotions where permitted.

Sales

The table below discloses selected quarterly data regarding sales for the three- and six-months ended June 30, 2024 and 2023, respectively. Data from any one or more quarters or periods is not necessarily indicative of annual results or continuing trends.

Sales of our energy drinks are expressed in unit case volume. A “unit case” means a unit of measurement equal to 192 U.S. fluid ounces of finished beverage (24 eight-ounce servings). Unit case volume means the number of unit cases (or unit case equivalents) of finished products or concentrates as if converted into finished products sold by us.

Our quarterly results of operations reflect seasonal trends that are primarily the result of increased demand in the warmer months of the year. Beverage sales tend to be lower during the first and fourth quarters of each calendar year. However, our experience with our energy drink products suggests they are less seasonal than the seasonality expected from traditional beverages. In addition, our continued growth internationally may further reduce the impact of seasonality on our business. Quarterly fluctuations may also be affected by other factors including the introduction of new products, the opening of new markets where temperature fluctuations are more pronounced, the addition of new bottlers/distributors, changes in the sales mix of our products and changes in advertising and promotional expenses.

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	Three-Months Ended				Six-Months Ended
(In thousands, except average net sales per case)	June 30,				June 30,
	2024		2023		2024		2023
Net sales	$	1,900,597	$	1,854,961	$	3,799,695	$	3,553,891
Less: Alcohol Brands segment sales		(41,564)		(61,076)		(97,634)		(107,366)
Less: Other segment sales		(7,003)		(7,308)		(12,536)		(11,922)
Adjusted net sales1	$	1,852,030	$	1,786,577	$	3,689,525	$	3,434,603
Case sales by segment:1
Monster Energy® Drinks		168,745		163,390		335,384		314,460
Strategic Brands		43,449		35,016		88,240		66,389
Total case sales		212,194		198,406		423,624		380,849
Average net sales per case - Energy Drinks	$	8.73	$	9.00	$	8.71	$	9.02

¹Excludes Alcohol Brands segment and Other segment net sales.

Net changes in foreign currency exchange rates had an unfavorable impact on the overall average net sales per case for the three- and six-months ended June 30, 2024.

The following represents case sales for our craft beers, hard seltzers and FMBs, in 192-ounce equivalents:

	Three-Months Ended				Six-Months Ended
(In thousands, except average net sales per case)	June 30,				June 30,
	2024		2023		2024		2023
Alcohol Brands segment net sales	$	41,564	$	61,076	$	97,634	$	107,366
Case sales		3,023		4,418		7,122		7,547
Average net sales per case - Alcohol Brands	$	13.75	$	13.82	$	13.71	$	14.23

See Item 2, “Management’s Discussion and Analysis of Financial Condition and Results of Operations – Results of Operations” for additional information related to net sales.

Liquidity and Capital Resources

Cash and cash equivalents. At June 30, 2024, we had $1.56 billion in cash and cash equivalents. Of our $1.56 billion of cash and cash equivalents held at June 30, 2024, $954.9 million was held by our foreign subsidiaries.

Long-term debt. In May 2024, the Company entered into a credit agreement with JPMorgan Chase Bank, N.A., as administrative agent, and certain other lenders, which provides for senior unsecured credit facilities in an aggregate principal amount of $1.50 billion (collectively, the “Credit Facilities”). The Credit Facilities consist of a $750.0 million term loan (the “Term Loan”) and up to $750.0 million in multicurrency revolving loan commitments (the “Revolving Credit Facility”). The Term Loan matures May 2027 and the Revolving Credit Facility matures May 2029. Borrowings under the Credit Facilities may be repaid at any time during the term of the Credit Facilities and, in the case of the Revolving Credit Facility, may be reborrowed prior to the maturity date. As of June 30, 2024, the Revolving Credit Facility had remaining availability of $750.0 million.

We believe that cash available from operations, including our cash resources and access to credit, will be sufficient for our working capital needs, including purchase commitments for raw materials and inventory, increases in accounts receivable, payments of tax liabilities, expansion and development needs, purchases of capital assets, purchases of equipment, purchases of real property and purchases of shares of our common stock, through at least the next 12 months. Based on our current plans, at this time we estimate that capital expenditures (exclusive of common stock repurchases) are likely to be less than $500.0 million through June 30, 2025. However, future business opportunities may cause a change in this estimate.

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Purchases of inventories, increases in accounts receivable and other assets, acquisition of property and equipment (including real property, personal property, plant and manufacturing equipment, and coolers), leasehold improvements, advances for or the purchase of equipment for our bottlers, acquisition and maintenance of trademarks, payments of accounts payable, income taxes payable and purchases of our common stock are expected to remain our principal recurring use of cash.

The following summarizes our cash flows for the six-months ended June 30, 2024 and 2023 (in thousands):

Net cash provided by (used in):
	2024		2023
Operating activities	$	848,433	$	763,162
Investing activities	$	903,304	$	(158,209)
Financing activities	$	(2,440,475)	$	(37,820)

Cash flows provided by operating activities. Cash provided by operating activities was $848.4 million for the six-months ended June 30, 2024, as compared with cash provided by operating activities of $763.2 million for the six-months ended June 30, 2023.

For the six-months ended June 30, 2024, cash provided by operating activities was primarily attributable to net income earned of $867.4 million and adjustments for certain non-cash expenses, consisting primarily of $46.5 million of depreciation and amortization and non-cash lease expense and $41.3 million of stock-based compensation. For the six-months ended June 30, 2024, cash provided by operating activities also increased due to a $123.5 million decrease in inventories, a $54.2 million increase in accrued promotional allowances, an $11.3 million increase in income taxes payable and a $2.7 million increase in accrued liabilities. For the six-months ended June 30, 2024, cash used in operating activities was primarily attributable to a $197.2 million increase in accounts receivable, a $33.5 million decrease in accounts payable, a $27.0 million decrease in accrued compensation, a $14.0 million increase in prepaid expenses and other assets, a $12.3 million increase in prepaid income taxes and a $7.7 million decrease in deferred revenue.

For the six-months ended June 30, 2023, cash provided by operating activities was primarily attributable to net income earned of $811.3 million and adjustments for certain non-cash expenses, consisting of $35.2 million of depreciation and amortization and non-cash lease expense, and $34.6 million of stock-based compensation. For the six-months ended June 30, 2023, cash provided by operating activities also increased due to a $132.2 million increase in accounts payable, a $93.1 million decrease in inventories, a $23.6 million increase in accrued promotional allowances and a $20.5 million increase in accrued liabilities. For the six-months ended June 30, 2023, cash used in operating activities was primarily attributable to a $317.8 million increase in accounts receivable, a $36.8 million increase in prepaid expenses and other assets, a $17.6 million decrease in accrued compensation, a $12.4 million decrease in deferred revenue, a $3.3 million increase in prepaid income taxes and a $1.2 million decrease in income taxes payable.

Cash flows provided by (used in) investing activities. Cash provided by investing activities was $903.3 million for the six-months ended June 30, 2024 as compared to cash used in investing activities of $158.2 million for the six-months ended June 30, 2023.

For both the six-months ended June 30, 2024 and 2023, cash provided by investing activities was primarily attributable to sales of available-for-sale investments. For both the six-months ended June 30, 2024 and 2023, cash used in investing activities was primarily attributable to purchases of available-for-sale investments. To a lesser extent, for both the six-months ended June 30, 2024 and 2023, cash used in investing activities also included the acquisitions of fixed assets consisting of vans and promotional vehicles, coolers and other equipment to support our marketing and promotional activities, production equipment, furniture and fixtures, office and computer equipment, computer software, equipment used for sales and administrative activities, certain leasehold improvements, as well as acquisitions of and/or construction of and/or improvements to real property. We expect to continue to use a portion of our cash in excess of our requirements for operations for purchasing short-term and long-term investments, leasehold improvements, the acquisition of capital equipment (specifically, vans, trucks and promotional vehicles, coolers, other promotional equipment, merchandise displays, warehousing racks as well as items of production equipment required to produce certain of our existing and/or new products) to develop our brand in international markets and for other corporate purposes. From time to time, we may also use cash to purchase additional real property related to our beverage business and/or acquire compatible businesses.

Cash flows used in financing activities. Cash used in financing activities was $2.44 billion for the six-months ended June 30, 2024 as compared to cash used in financing activities of $37.8 million for the six-months ended June 30, 2023. The cash used in financing activities for both the six-months ended June 30, 2024 and 2023 was primarily the result of the repurchases of our common stock. The cash provided by financing activities for the six-months ended June 30, 2024 was primarily attributable to borrowings under the Credit Facilities and, to a lesser extent, the issuance of our common stock under our stock-based compensation plans. The cash provided by

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financing activities for the six-months ended June 30, 2023 was primarily attributable to the issuance of our common stock under our stock-based compensation plans.

The following represents a summary of the Company’s contractual commitments and related scheduled maturities as of June 30, 2024:

	Payments due by period (in thousands)
			Less than		1‑3		3‑5		More than
Obligations	Total		1 year		years		years		5 years
Contractual Obligations1	$	432,144	$	334,676	$	91,923	$	5,427	$	118
Finance Leases		2,213		2,203		10		—		—
Operating Leases		65,769		13,390		21,204		16,199		14,976
Credit Facilities		750,000		—		—		750,000		—
Purchase Commitments2		262,546		226,510		35,972		64		—
	$	1,512,672	$	576,779	$	149,109	$	771,690	$	15,094

¹Contractual obligations include our obligations related to sponsorships and other commitments.

²Purchase commitments include obligations made by us and our subsidiaries to various suppliers for raw materials used in the production of our products. These obligations vary in terms but are generally satisfied within one year.

In addition, approximately $3.1 million of unrecognized tax benefits have been recorded as liabilities as of June 30, 2024. It is expected that the amount of unrecognized tax benefits will not significantly change within the next 12 months. As of June 30, 2024, we had $0.7 million of accrued interest and penalties related to unrecognized tax benefits.

Critical Accounting Policies and Estimates

Our consolidated financial statements are prepared in accordance with GAAP. GAAP requires us to make estimates and assumptions that affect the reported amounts in our consolidated financial statements. Critical accounting estimates are those that management believes are the most important to the portrayal of our financial condition and results and require the most difficult, subjective or complex judgments, often as a result of the need to make estimates about the effect of matters that are inherently uncertain and that have had, or are reasonably likely to have, a material impact on our financial condition or results of operations. Judgments and uncertainties may result in materially different amounts being reported under different conditions or using different assumptions. There have been no material changes to our critical accounting policies or estimates from the information provided in “Part II, Item 7, Management’s Discussion and Analysis of Financial Condition and Results of Operations” and “Part II, Item 8 – Financial Statements and Supplementary Data – Note 1 – Organization and Summary of Significant Accounting Policies”, included in our Annual Report on Form 10-K for the fiscal year ended December 31, 2023 (“Form 10-K”).

Recent Accounting Pronouncements

The information required by this Item is incorporated herein by reference to the Notes to Condensed Consolidated Financial Statements - Note 1. Recent Accounting Pronouncements, in Part I, Item 1, of this Quarterly Report on Form 10-Q.

Inflation

Inflation had an impact on our results of operations for the three- and six-months ended June 30, 2024 primarily due to inflation related local currency price increases in certain international markets.

Forward-Looking Statements

Certain statements made in this report may constitute forward-looking statements (within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended) (the “Exchange Act”) regarding the expectations of management with respect to revenues, profitability, adequacy of funds from operations and our existing credit facility, among other things. All statements containing a projection of revenues, income (loss), earnings (loss) per share, capital expenditures, dividends, capital structure or other financial items, a statement of management’s plans and objectives for future operations, or a statement of future economic performance contained in management’s discussion and analysis of financial condition

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and results of operations, including statements related to new products, volume growth and statements encompassing general optimism about future operating results and non-historical information, are forward-looking statements within the meaning of the Exchange Act. Without limiting the foregoing, the words “believes,” “thinks,” “anticipates,” “plans,” “expects,” “estimates” and similar expressions are intended to identify forward-looking statements.

Management cautions that these statements are qualified by their terms and/or important factors, many of which are outside our control and involve a number of risks, uncertainties and other factors, that could cause actual results and events to differ materially from the statements made including, but not limited to, the following:

● Our ability to successfully integrate the Bang Energy® business and recognize the anticipated benefits of the transaction;

● Our ability to consolidate operations and/or rationalize brands acquired from Monster Brewing Company and Bang Energy®;

● Our ability to achieve profitability within our Alcohol Brands segment;

● Our ability to absorb, mitigate or pass on cost increases to our bottlers/distributors and/or customers and/or consumers;

● The impact of rising costs, interest rates, and inflation on the discretionary income of our consumers;

● Uncertainties associated with an economic slowdown or recession that could negatively impact the financial condition of our customers and could result in a reduced demand for our products;

● The impact of the military conflicts in Ukraine, Israel and Gaza as well as tensions in the Middle East and across the Taiwan Straits, including supply chain disruptions, volatility in commodity and energy prices, increased economic uncertainty and escalating geopolitical tensions;

● Fluctuations in growth and/or growth rates (positive or negative) of the domestic and international energy drink categories generally, including in the convenience and gas channel (which is our largest channel) and the impact on demand for our products resulting from deteriorating economic conditions and/or financial uncertainties including a slowdown in consumer spending generally or reduced demand for consumer goods;

● Lack of anticipated demand for our products in domestic and/or international markets;

● Our ability to sustain the current level of sales of and/or achieve growth for our Monster Energy®, Reign Total Body Fuel®, Reign Storm®, Bang Energy® and NOS® brand energy drinks and/or our other products, including our Strategic Brands and Alcohol Brands;

● The impact of temporary or permanent facility closures, production slowdowns and disruptions in operations experienced by our manufacturing facilities, our suppliers, bottlers/distributors, co-packers, and/or breweries, including any material disruptions on the production and distribution of our products;

● Disruption to our and/or our co-packers’ manufacturing facilities and operations due to severe weather, natural disasters, climate change, labor-related issues, production difficulties, capacity limitations, cybersecurity incidents or other causes, which could impair our ability to produce or deliver finished products, resulting in a negative impact on our operating results;

● Our ability to modify our manufacturing facilities to comply with safety, health, environmental, and other regulations;

● The consolidation of co-packers leading us to increasingly rely on fewer co-packing groups, certain of which account for a large percentage of our co-packing capacity for our Monster Energy® drinks;

● The impact of logistical issues and delays, including shortages of shipping containers and port of entry congestion;

● We have extensive commercial arrangements with TCCC and, as a result, our future performance is substantially dependent on the success of our relationship with TCCC;

● The consequence of TCCC’s bottlers/distributors distributing Coca-Cola brand energy drinks, possible reductions in the number of our SKUs carried by such bottlers/distributors and/or such bottlers/distributors imposing limitations on distributing new product SKUs;

● The effect of TCCC being one of our significant stockholders and the potential divergence of TCCC’s interests from those of our other stockholders;

● Our ability to maintain relationships with TCCC system bottlers/distributors and manage their ongoing commitment to focus on our non-alcohol products;

● Disruptions in distribution channels and/or declines in sales due to the termination and/or insolvency of existing and/or new domestic and/or international bottlers/distributors;

● Fluctuations in our inventory levels or those of our bottlers/distributors, planned or otherwise, and the resultant impact on our revenues;

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● Unfavorable regulations, including taxation, age restrictions imposed on the sale, purchase, or consumption of our products, marketing restrictions, product registration requirements, tariffs, trade restrictions, container size limitations and/or ingredient restrictions;

● The effect of inquiries from, and/or actions by, state attorneys general, the Federal Trade Commission (the “FTC”), the Food and Drug Administration (the “FDA”), the Bureau of Alcohol, Tobacco, Firearms and Explosives (the “ATF”), municipalities, city attorneys, other government agencies, quasi-government agencies, government officials (including members of the U.S. Congress) and/or analogous central and local agencies and other authorities in the foreign countries in which our products are manufactured and/or distributed into the advertising, marketing, promotion, ingredients, sale and/or consumption of our products, including voluntary and/or required changes to our business practices;

● Our ability to comply with laws, regulations and evolving industry standards regarding consumer privacy and data use and security, including, but not limited to, with respect to the General Data Protection Regulation and the California Consumer Privacy Act of 2018;

● Our ability to achieve profitability and/or repatriate cash from certain of our operations outside the United States;

● Our ability to manage legal and regulatory requirements in foreign jurisdictions, potential difficulties in staffing and managing foreign operations and potentially higher incidence of fraud or corruption and credit risk of foreign customers and/or bottlers/distributors;

● Changes in U.S. tax laws as a result of any legislation proposed by the U.S. Presidential Administration or U.S. Congress, which may include efforts to change or repeal the 2017 Tax Cuts and Jobs Act and the federal corporate income tax rate reduction;

● Our ability to produce our products in international markets in which they are sold, thereby reducing freight costs and/or product damages;

● Our ability to effectively manage our inventories and/or our accounts receivables;

● Our foreign currency exchange rate risk with respect to our sales, expenses, profits, assets and liabilities denominated in currencies other than the U.S. dollar, which will continue to increase as foreign sales increase;

● Changes in accounting standards may affect our reported profitability;

● Implications of the Organization for Economic Cooperation and Development’s base erosion and profit shifting project;

● Any proceedings that may be brought against us by the U.S. Securities and Exchange Commission (the “SEC”), the FDA, the FTC, the ATF or other governmental or quasi-governmental agencies or bodies;

● The outcome and/or possibility of future shareholder derivative actions or shareholder securities litigation that may be filed against us and/or against certain of our officers and directors, and the possibility of other private shareholder litigation;

● The outcome of product liability or consumer fraud litigation and/or class action litigation (or its analog in foreign jurisdictions) regarding the safety of our products and/or the ingredients in our products and/or claims made in connection with our products and/or alleging false advertising, marketing and/or promotion, and the possibility of future product liability and/or class action lawsuits;

● Exposure to significant liabilities due to litigation, legal or regulatory proceedings, including litigation directed at the energy and alcohol beverage industries generally or at the Company in particular;

● Intellectual property injunctions;

● Unfavorable resolution of possible tax matters;

● Uncertainty and volatility in the domestic and global economies, including risk of counterparty default or failure;

● Our ability to address any significant deficiencies or material weakness in our internal controls over financial reporting;

● Our ability to continue to generate sufficient cash flows to support our expansion plans and general operating activities;

● The sufficiency of our existing capital resources to fund our future operating expenses and capital expenditure requirements, including our new credit agreement providing for a $750 million delayed draw senior term loan A facility and a $750 million senior revolving credit facility;

● Our anticipated use of our existing cash resources and our ability to obtain additional financing in the future;

● Decreased demand for our products resulting from changes in consumer preferences, including, but not limited to: changes in demand for different packages, sizes and configurations; changes due to perceived health concerns such as obesity, ingredients in our products or packaging, and alcohol abuse; changes due to product safety concerns; and/or changes due to decreased consumer discretionary spending power;

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● Adverse publicity surrounding obesity, alcohol consumption, and other health concerns related to our products, product safety and quality, water usage, environmental impact and sustainability, human rights, our culture, workforce and labor and workplace laws;

● Our ability to meet or comply with sustainability-related expectations, standards, and regulations, including rules adopted by the SEC, laws implemented by the California legislature, and directives adopted by the European Commission;

● Changes in demand that are weather or season related and/or for other reasons, including changes in product category and/or package consumption;

● Changes in cost and availability of certain key ingredients including aluminum cans, as well as disruptions to the supply chain, as a result of climate change and poor or extreme weather conditions;

● The impact of unstable political conditions, civil unrest, large scale terrorist acts, the outbreak or escalation of armed hostilities, major natural disasters and extreme weather conditions, widespread outbreaks of infectious diseases (such as the COVID-19 pandemic), or unforeseen economic and political changes and local or international catastrophic events;

● The impact on our business of competitive products and pricing pressures and our ability to increase or maintain our market share as a result of actions by competitors, including unsubstantiated and/or misleading claims, false advertising claims and tortious interference, as well as competitors selling misbranded products;

● The impact on our business of trademark and trade dress infringement proceedings brought against us relating to any of our brands, which could result in an injunction barring us from selling certain of our products and/or require changes to be made to our current trade dress;

● Our ability to implement and/or maintain price increases, including through reductions in promotional allowances;

● An inability to achieve volume growth through product and packaging initiatives;

● Our ability to implement our growth strategy, including expanding our business in existing and new sectors, such as the alcohol beverage sector;

● The inherent operational risks presented by the alcohol beverage industry that may not be adequately covered by insurance or lead to litigation relating to alcohol marketing, advertising, or distribution practices, alcohol abuse problems and other health consequences arising from excessive consumption of or other misuse of alcohol, including death;

● Our inability to transition distribution agreements in our Alcohol Brands segment and/or the impact of higher costs to change distributors for our alcohol beverages;

● The impact of criticism of our products and/or the energy drink and/or alcohol beverage markets generally and/or legislation enacted (whether as a result of such criticism or otherwise) that restricts the marketing or sale of energy drinks and/or alcohol beverages (including prohibiting the sale of energy and/or alcohol drinks at certain establishments or pursuant to certain governmental programs), limits caffeine or alcohol content in beverages, requires certain product labeling disclosures and/or warnings, imposes excise and/or sales taxes, limits product sizes and/or imposes age restrictions for the sale of energy and/or alcohol drinks;

● Our ability to comply with and/or resulting lower consumer demand and/or lower profit margins for energy drinks and/or alcohol beverages due to proposed and/or future U.S. federal, state and local laws and regulations and/or proposed or existing laws and regulations in certain foreign jurisdictions and/or any changes therein, including changes in taxation requirements (including tax rate changes, new tax laws, new and/or increased excise, sales and/or other taxes on our products and revised tax law interpretations) and environmental laws, as well as the Federal Food, Drug, and Cosmetic Act and regulations or rules made thereunder or in connection therewith by the FDA. In addition, our business may be adversely impacted by changes in other food, drug or similar laws in the United States and internationally as well as laws and regulations or rules made or enforced by the ATF and/or the FTC or their foreign counterparts;

● Disruptions in the timely import or export of our products and/or ingredients including flavors, flavor ingredients and supplement ingredients due to port congestion, strikes and related labor issues or otherwise;

● Our ability to satisfy all criteria set forth in any model energy and/or alcohol drink guidelines, including, without limitation, those adopted by the American Beverage Association, of which we are a member, and/or any international beverage associations and the impact that our failure to satisfy such guidelines may have on our business;

● The effect of unfavorable or adverse public relations, press, articles, comments and/or media attention;

● Changes in the cost, quality and availability of containers, packaging materials, aluminum cans or kegs, the Midwest and other premiums, raw materials, including flavors and flavor ingredients, and other ingredients and juice concentrates, co-packing fees, and our ability to obtain and/or maintain favorable supply arrangements and relationships and procure timely and/or sufficient production of all or any of our products to meet customer demand;

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● Any shortages that may be experienced in the procurement of containers and/or other raw materials including, without limitation, water, flavors, flavor ingredients, supplement ingredients, aluminum cans generally, to a limited extent PET containers, 24-ounce aluminum cap cans, 19.2-ounce cans and 550ml BRE aluminum cans with resealable ends;

● Our ability to access, secure and purify sufficient supplies of quality water;

● Limitations in procuring sufficient quantities of aluminum cans;

● In order to secure sufficient quantities of aluminum cans and sufficient co-packing availability in the future, we may be required to commit to minimum purchase volumes and/or minimum co-packing volumes. In the event that we over-estimate future demand for our products and therefore may not purchase such minimum quantities in full, or utilize such minimum co-packing volumes in full, we may incur claims and/or costs or losses in respect of such shortfalls;

● The impact on our cost of sales of corporate activity among the limited number of suppliers from whom we purchase certain raw materials;

● Our ability to pass on to our customers all or a portion of any increases in the costs of raw materials, ingredients, commodities and/or other cost inputs affecting our business;

● Our ability to penetrate new domestic and/or international markets and/or gain approval or mitigate the delay in securing approval for the sale of our products in various countries;

● The effectiveness of sales and/or marketing efforts by us and/or by the bottlers/distributors of our products, most of whom distribute products that may be regarded as competitive with our products;

● Unilateral decisions by bottlers/distributors, buying groups, convenience and gas chains, grocery chains, mass merchandisers, specialty chain stores, e-commerce retailers, e-commerce websites, club stores and other customers to discontinue carrying all or any of our products that they are carrying at any time, restrict the range of our products they carry, impose restrictions or limitations on the sale of our products and/or the sizes of containers of our products and/or devote less resources to the sale of our products;

● The impact of certain activities by competitors and others to persuade regulators and/or retailers and/or customers in certain countries to reduce the permitted or maximum container sizes for our products from those currently being sold and marketed by us;

● The impact of possible trading disputes between our bottler/distributors and their customers and/or one or more buying groups which may result in the delisting of certain of our products, temporarily or otherwise;

● The effects of retailer consolidation on our business and our ability to successfully adapt to the rapidly changing retail landscape, including, but not limited to, competition from new entrants, consolidations by competitors and retailers, and other competitive activities;

● Our ability to adapt to the changing retail landscape with the rapid growth in e-commerce retailers;

● The effects of bottler/distributor consolidation on our business;

● The costs and/or effectiveness, now or in the future, of our sponsorships and endorsements, marketing and promotional strategies;

● The success of our sports marketing, social media and other general marketing endeavors both domestically and internationally;

● Possible product recalls and/or reformulations of certain of our products and/or market withdrawals of certain of our products due to defective packaging and/or non-compliant formulas or production in one or more jurisdictions;

● The failure of our bottlers and/or co-packers to manufacture our products on a timely basis or at all;

● Our ability to make suitable arrangements and/or procure sufficient capacity for the co-packing of any of our products both domestically and internationally, the timely replacement of discontinued co-packing arrangements and/or limitations on co-packing availability, including for retort production;

● Our ability to make suitable arrangements for the timely procurement of non-defective raw materials;

● Our inability to protect and/or the loss of our intellectual property rights and/or our inability to use our trademarks, trade names or designs and/or trade dress in certain countries;

● Volatility of stock prices which may restrict stock sales, stock purchases or other opportunities as well as negatively impact the motivation of equity award grantees;

● Provisions in our organizational documents and/or control by insiders which may prevent changes in control even if such changes would be beneficial to other stockholders;

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● Any disruption in and/or lack of effectiveness of our information technology systems, including a breach of cyber security, that disrupts our business or negatively impacts customer relationships, as well as cybersecurity incidents involving data shared with or by third parties; and

● Succession plans for and/or the recruitment and retention of senior management, other key employees and our employee base in general.

The foregoing list of important factors and other risks detailed from time to time in our reports filed with the SEC is not exhaustive. See “Part II, Item 1A – Risk Factors” for a more complete discussion of these risks and uncertainties and for other risks and uncertainties. Those factors and the other risk factors described therein are not necessarily all of the important factors that could cause actual results or developments to differ materially from those expressed in any of our forward-looking statements. Other unknown or unpredictable factors also could harm our results. Consequently, our actual results could be materially different from the results described or anticipated by our forward-looking statements due to the inherent uncertainty of estimates, forecasts and projections and may be better or worse than anticipated. Given these uncertainties, you should not rely on forward-looking statements. Forward-looking statements represent our estimates and assumptions only as of the date that they were made. We expressly disclaim any duty to provide updates to forward-looking statements, and the estimates and assumptions associated with them, after the date of this report, in order to reflect changes in circumstances or expectations or the occurrence of unanticipated events except to the extent required by applicable securities laws.

ITEM 3.    QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK

There have been no material changes in our market risks during the three-months ended June 30, 2024 compared with the disclosures in Part II, Item 7A of our Form 10-K.

ITEM 4.    CONTROLS AND PROCEDURES

Evaluation of Disclosure Controls and Procedures – Under the supervision and with the participation of the Company’s management, including our Co-Chief Executive Officers and Chief Financial Officer, we have evaluated the effectiveness of the design and operation of our disclosure controls and procedures (as defined in Rules 13(a)-15(e) and 15(d)-15(e) of the Exchange Act) as of the end of the period covered by this report. Based upon this evaluation, the Co-Chief Executive Officers and Chief Financial Officer have concluded that our disclosure controls and procedures are adequate and effective to ensure that information we are required to disclose in reports that we file or submit under the Exchange Act is (1) recorded, processed, summarized and reported within the time periods specified in rules and forms of the SEC and (2) accumulated and communicated to our management, including its principal executive and principal financial officers, as appropriate, to allow timely decisions regarding required disclosures.

Changes in Internal Control Over Financial Reporting – There were no changes in the Company’s internal controls over financial reporting during the quarter ended June 30, 2024, that have materially affected, or are reasonably likely to materially affect, our internal control over financial reporting.

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PART II - OTHER INFORMATION

ITEM 1.LEGAL PROCEEDINGS

The information required by this Item is incorporated herein by reference to the Notes to Condensed Consolidated Financial Statements - Note 12. Commitments and Contingencies: Litigation in Part I, Item 1, of this Quarterly Report on Form 10-Q.

ITEM 1A.RISK FACTORS

In addition to the other information set forth in this Quarterly Report on Form 10-Q, including Management’s Discussion and Analysis of Financial Condition and Results of Operations and the condensed consolidated financial statements and related notes, you should carefully consider the risks discussed in “Part I, Item 1A – Risk Factors” in our Form 10-K. If any of these risks occur or continue to occur, our business, reputation, financial condition and/or operating results could be materially adversely affected. We also note that the risk factors described in this report and our Form 10-K are not the only risks facing our Company, and such additional risks or uncertainties that we currently deem to be immaterial or are unknown to us could negatively impact our business, operations, or financial results.

ITEM 2. UNREGISTERED SALES OF EQUITY SECURITIES AND USE OF PROCEEDS

On November 2, 2022, the Company’s Board of Directors authorized a share repurchase program for the purchase of up to an additional $500.0 million of the Company’s outstanding common stock (the “November 2022 Repurchase Plan”). During the three-months ended June 30, 2024, the Company repurchased approximately 2.2 million shares of its common stock at an average purchase price of $49.55 per share, for a total amount of approximately $107.7 million (excluding broker commissions), under the November 2022 Repurchase Plan. Subsequent to June 30, 2024, the Company repurchased approximately 0.7 million shares of its common stock at an average purchase price of $49.82 per share, for a total amount of approximately $34.7 million (excluding broker commissions), under the November 2022 Repurchase Plan. As of August 6, 2024, no amount remained available for repurchase under the November 2022 Repurchase Plan.

On November 7, 2023, the Company’s Board of Directors authorized a share repurchase program for the purchase of up to an additional $500.0 million of the Company’s outstanding common stock (the “November 2023 Repurchase Plan”). During the three-months ended June 30, 2024, no shares were repurchased under the November 2023 Repurchase Plan. Subsequent to June 30, 2024, the Company repurchased approximately 3.2 million shares of its common stock at an average purchase price of $49.54 per share, for a total amount of approximately $157.6 million (excluding broker commissions), under the November 2023 Repurchase Plan. As of August 6, 2024, $342.4 million remained available for repurchase under the November 2023 Repurchase Plan.

The aggregate amount of the Company’s outstanding common stock that remains available for repurchase under all previously authorized repurchase plans is $342.4 million as of August 6, 2024.

On May 1, 2024, the Board of Directors authorized the Company to execute a modified “Dutch auction” tender offer to repurchase up to $3.0 billion of its outstanding shares of common stock. On May 8, 2024, the Company commenced the tender offer, with such offer expiring on June 5, 2024. On June 10, 2024, the Company accepted for purchase a total of approximately 56.6 million shares of common stock at a purchase price of $53.00 per share, for an aggregate purchase price of approximately $3.0 billion. The repurchase was funded with approximately $2.25 billion of cash on hand and approximately $750 million in borrowings. The cost of these shares and the fees relating to the tender offer are included in common stock in treasury in the accompanying condensed consolidated balance sheet at June 30, 2024.

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The following tabular summary reflects the Company’s repurchase activity during the quarter ended June 30, 2024.

					Maximum Number (or
					Approximate Dollar
				Total Number of	Value) of Shares that
				Shares Purchased	May Yet Be Purchased
	Total Number			as Part of Publicly	Under the Plans or
	of Shares	Average Price		Announced Plans	Programs (In
Period	Purchased	per Share¹		or Programs	thousands)²
Apr 1 – Apr 30, 2024	—	$	—	—	$	642,400
May 1, 2024 Authorization	—		—	—	$	3,000,000
May 1 – May 31, 2024	—	$	—	—	$	3,642,400
Jun 1 – Jun 30, 2024	58,777,129	$	52.87	58,777,129	$	534,687

¹Excluding broker commissions paid.

²Net of broker commissions paid.

ITEM 3.DEFAULTS UPON SENIOR SECURITIES

None.

ITEM 4.MINE SAFETY DISCLOSURES

Not applicable.

ITEM 5.OTHER INFORMATION

During the three-months ended June 30, 2024, none of the Company’s directors or officers adopted, modified or terminated a Rule 10b5-1 trading arrangement or a non-Rule 10b5-1 trading arrangement (each as defined in Item 408 of Regulation S-K under the Securities Exchange Act of 1934, as amended).

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ITEM 6.EXHIBITS

3.1	Second Amended and Restated Certificate of Incorporation of the Company (incorporated by reference to Exhibit 3.1 to our Form 8-K dated June 27, 2023).
3.2	Third Amended and Restated By-laws of the Company (incorporated by reference to Exhibit 3.2 to our Form 8-K dated June 27, 2023).
10.1	Credit Agreement dated as of May 22, 2024 among the Company, Monster Energy Company, Monster Energy US LLC, JPMorgan Chase Bank, N.A., as administrative agent and the lenders party thereto (incorporated by reference to Exhibit 10.1 to our Form 8-K dated May 23, 2024).
10.2+	Employment Agreement between the Company and Emilie Tirre dated June 13, 2024 (incorporated by reference to Exhibit 10.1 to our Form 8-K dated June 14, 2024).
31.1*	Certification of Co-Chief Executive Officer Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002
31.2*	Certification of Co-Chief Executive Officer Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002
31.3*	Certification of Chief Financial Officer Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002
32.1*	Certification of Co-Chief Executive Officer Pursuant to 18 U.S.C. Section 1350, as Adopted Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002
32.2*	Certification of Co-Chief Executive Officer Pursuant to 18 U.S.C. Section 1350, as Adopted Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002
32.3*	Certification by Chief Financial Officer Pursuant to 18 U.S.C. Section 1350, as Adopted Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002
101*	The following financial information from Monster Beverage Corporation’s Quarterly Report on Form 10-Q for the quarter ended June 30, 2024, formatted in iXBRL (Inline eXtensible Business Reporting Language): (i) Condensed Consolidated Balance Sheets as of June 30, 2024 and December 31, 2023, (ii) Condensed Consolidated Statements of Income for the three- and six-months ended June 30, 2024 and 2023, (iii) Condensed Consolidated Statements of Comprehensive Income for the three- and six-months ended June 30, 2024 and 2023, (iv) Condensed Consolidated Statements of Stockholders’ Equity for the three- and six-months ended June 30, 2024 and 2023, (v) Condensed Consolidated Statements of Cash Flows for the six-months ended June 30, 2024 and 2023, and (vi) the Notes to Condensed Consolidated Financial Statements.
104*	The cover page from Monster Beverage Corporation’s Quarterly Report on Form 10-Q for the quarter ended June 30, 2024, formatted in iXBRL (Inline eXtensible Business Reporting Language) and contained in Exhibit 101.

*    Filed herewith

+    Management contract or compensatory plan or arrangement.

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SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

	MONSTER BEVERAGE CORPORATION
	Registrant
Date: August 8, 2024	/s/ RODNEY C. SACKS
	Rodney C. Sacks
	Chairman of the Board of Directors
	and Co-Chief Executive Officer
Date: August 8, 2024	/s/ HILTON H. SCHLOSBERG
	Hilton H. Schlosberg
	Vice Chairman of the Board of Directors
	and Co-Chief Executive Officer

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EX-31.1

EXHIBIT 31.1

CERTIFICATION PURSUANT TO RULE 13A-14(a) OR 15D-14(a) OF THE SECURITIES

EXCHANGE ACT OF 1934, AS ADOPTED PURSUANT TO SECTION 302 OF THE

SARBANES-OXLEY ACT OF 2002

I, Rodney Sacks, certify that:

1. I have reviewed this quarterly report on Form 10-Q of Monster Beverage Corporation;

2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4. The registrant’s other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

a. designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

b. designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

c. evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

d. disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and

5. The registrant’s other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of registrant’s board of directors (or persons performing the equivalent function):

a. all significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and

b. any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.

Date:	August 8, 2024	/s/ Rodney C. Sacks
		Rodney C. Sacks
		Chairman of the Board of Directors
		and Co-Chief Executive Officer

EX-31.2

EXHIBIT 31.2

CERTIFICATION PURSUANT TO RULE 13A-14(a) OR 15D-14(a) OF THE SECURITIES

EXCHANGE ACT OF 1934, AS ADOPTED PURSUANT TO SECTION 302 OF THE

SARBANES-OXLEY ACT OF 2002

I, Hilton Schlosberg, certify that:

1. I have reviewed this quarterly report on Form 10-Q of Monster Beverage Corporation;

2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4. The registrant’s other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

a. designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

b. designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

c. evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

d. disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and

5. The registrant’s other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of registrant’s board of directors (or persons performing the equivalent function):

a. all significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and

b. any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.

Date:	August 8, 2024	/s/ Hilton H. Schlosberg
		Hilton H. Schlosberg
		Vice Chairman of the Board of Directors and
		Co-Chief Executive Officer

EX-31.3

EXHIBIT 31.3

CERTIFICATION PURSUANT TO RULE 13A-14(a) OR 15D-14(a) OF THE SECURITIES

EXCHANGE ACT OF 1934, AS ADOPTED PURSUANT TO SECTION 302 OF THE

SARBANES-OXLEY ACT OF 2002

I, Thomas Kelly, certify that:

1. I have reviewed this quarterly report on Form 10-Q of Monster Beverage Corporation;

2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4. The registrant’s other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

a. designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

b. designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

c. evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

d. disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and

5. The registrant’s other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of registrant’s board of directors (or persons performing the equivalent function):

a. all significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and

b. any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.

Date:	August 8, 2024	/s/ Thomas J. Kelly
		Thomas J. Kelly
		Chief Financial Officer

EX-32.1

EXHIBIT 32.1

CERTIFICATION PURSUANT TO

18 U.S.C. SECTION 1350,

AS ADOPTED PURSUANT TO

SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002

In connection with the quarterly report of Monster Beverage Corporation (the “Company”) on Form 10-Q for the quarter ended June 30, 2024 as filed with the Securities and Exchange Commission (the “Report”), the undersigned, Rodney C. Sacks, Chairman of the Board of Directors and Co-Chief Executive Officer of the Company, certifies, pursuant to 18 U.S.C. 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, that:

1. The Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934; and

2. The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.

Date:	August 8, 2024	/s/ Rodney C. Sacks
		Rodney C. Sacks
		Chairman of the Board of Directors
		and Co-Chief Executive Officer

EX-32.2

EXHIBIT 32.2

CERTIFICATION PURSUANT TO

18 U.S.C. SECTION 1350,

AS ADOPTED PURSUANT TO

SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002

In connection with the quarterly report of Monster Beverage Corporation (the “Company”) on Form 10-Q for the quarter ended June 30, 2024 as filed with the Securities and Exchange Commission (the “Report”), the undersigned, Hilton H. Schlosberg, Vice Chairman of the Board of Directors and Co-Chief Executive Officer of the Company, certifies, pursuant to 18 U.S.C. 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, that:

1. The Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934; and

2. The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.

Date:	August 8, 2024	/s/ Hilton H. Schlosberg
		Hilton H. Schlosberg
		Vice Chairman of the Board of Directors and
		Co-Chief Executive Officer

EX-32.3

EXHIBIT 32.3

CERTIFICATION PURSUANT TO

18 U.S.C. SECTION 1350,

AS ADOPTED PURSUANT TO

SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002

In connection with the quarterly report of Monster Beverage Corporation (the “Company”) on Form 10-Q for the quarter ended June 30, 2024 as filed with the Securities and Exchange Commission (the “Report”), the undersigned, Thomas J. Kelly, Chief Financial Officer of the Company, certifies, pursuant to 18 U.S.C. 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, that:

1. The Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934; and

2. The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.

Date:	August 8, 2024	/s/ Thomas J. Kelly
		Thomas J. Kelly
		Chief Financial Officer

XML

Document and Entity Information - shares	6 Months Ended
	Jun. 30, 2024	Jul. 31, 2024
Document and Entity Information
Document Type	10-Q
Document Quarterly Report	true
Document Transition Report	false
Document Period End Date	Jun. 30, 2024
Document Fiscal Year Focus	2024
Securities Act File Number	001-18761
Entity Registrant Name	Monster Beverage Corp
Entity Incorporation, State or Country Code	DE
Entity Tax Identification Number	47-1809393
Entity Address, Address Line One	1 Monster Way
Entity Address, City or Town	Corona
Entity Address, State or Province	CA
Entity Address, Postal Zip Code	92879
City Area Code	951
Local Phone Number	739 - 6200
Title of 12(b) Security	Common Stock
Trading Symbol	MNST
Security Exchange Name	NASDAQ
Entity Current Reporting Status	Yes
Entity Interactive Data Current	Yes
Entity Filer Category	Large Accelerated Filer
Entity Small Business	false
Entity Emerging Growth Company	false
Entity Shell Company	false
Entity Common Stock, Shares Outstanding		979,543,967
Entity Central Index Key	0000865752
Current Fiscal Year End Date	--12-31
Document Fiscal Period Focus	Q2
Amendment Flag	false

XML

CONDENSED CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands	Jun. 30, 2024	Dec. 31, 2023
CURRENT ASSETS:
Cash and cash equivalents	$ 1,564,734	$ 2,297,675
Short-term investments	0	955,605
Accounts receivable, net	1,362,398	1,193,964
Inventories	834,404	971,406
Prepaid expenses and other current assets	129,303	116,195
Prepaid income taxes	63,458	54,151
Total current assets	3,954,297	5,588,996
INVESTMENTS	0	76,431
PROPERTY AND EQUIPMENT, net	960,962	890,796
DEFERRED INCOME TAXES, net	187,269	175,003
GOODWILL	1,417,941	1,417,941
OTHER INTANGIBLE ASSETS, net	1,433,326	1,427,139
OTHER ASSETS	107,109	110,216
Total Assets	8,060,904	9,686,522
CURRENT LIABILITIES:
Accounts payable	511,137	564,379
Accrued liabilities	213,905	183,988
Accrued promotional allowances	319,757	269,061
Deferred revenue	44,377	41,914
Accrued compensation	60,357	87,392
Income taxes payable	10,990	14,955
Total current liabilities	1,160,523	1,161,689
DEFERRED REVENUE	192,354	204,251
DEFERRED INCOME TAXES	28,896
OTHER LIABILITIES	64,068	91,838
LONG-TERM DEBT	748,740
COMMITMENTS AND CONTINGENCIES (Note 12)
STOCKHOLDERS' EQUITY:
Common stock - $0.005 par value; 5,000,000 shares authorized; 1,125,330 shares issued and 983,380 shares outstanding as of June 30, 2024; 1,122,592 shares issued and 1,041,571 shares outstanding as of December 31, 2023	5,627	5,613
Additional paid-in capital	5,068,291	4,975,115
Retained earnings	6,807,154	5,939,736
Accumulated other comprehensive loss	(182,304)	(125,337)
Common stock in treasury, at cost; 141,950 shares and 81,021 shares as of June 30, 2024 and December 31, 2023, respectively	(5,832,445)	(2,566,383)
Total stockholders' equity	5,866,323	8,228,744
Total Liabilities and Stockholders' Equity	$ 8,060,904	$ 9,686,522

XML

CONDENSED CONSOLIDATED BALANCE SHEETS (Parenthetical) - $ / shares shares in Thousands	Jun. 30, 2024	Dec. 31, 2023
CONDENSED CONSOLIDATED BALANCE SHEETS
Common stock, par value (in dollars per share)	$ 0.005	$ 0.005
Common stock, shares authorized	5,000,000	5,000,000
Common stock, shares issued	1,125,330	1,122,592
Common stock, shares outstanding	983,380	1,041,571
Common stock in treasury, shares	141,950	81,021

XML

CONDENSED CONSOLIDATED STATEMENTS OF INCOME - USD ($) shares in Thousands, $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2024	Jun. 30, 2023	Jun. 30, 2024	Jun. 30, 2023
CONDENSED CONSOLIDATED STATEMENTS OF INCOME
NET SALES	$ 1,900,597	$ 1,854,961	$ 3,799,695	$ 3,553,891
COST OF SALES	881,091	880,739	1,753,061	1,681,820
GROSS PROFIT	1,019,506	974,222	2,046,634	1,872,071
OPERATING EXPENSES	492,343	450,417	977,480	863,201
OPERATING INCOME	527,163	523,805	1,069,154	1,008,870
INTEREST and OTHER INCOME, net	24,376	15,159	60,131	27,653
INCOME BEFORE PROVISION FOR INCOME TAXES	551,539	538,964	1,129,285	1,036,523
PROVISION FOR INCOME TAXES	126,170	125,093	261,867	225,208
NET INCOME	$ 425,369	$ 413,871	$ 867,418	$ 811,315
NET INCOME PER COMMON SHARE:
Basic (in dollar per share)	$ 0.41	$ 0.40	$ 0.84	$ 0.78
Diluted (in dollar per share)	$ 0.41	$ 0.39	$ 0.83	$ 0.77
Basic (in shares)	1,029,268	1,047,065	1,035,175	1,045,993
Diluted (in shares)	1,037,378	1,060,093	1,044,363	1,059,667

XML

CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2024	Jun. 30, 2023	Jun. 30, 2024	Jun. 30, 2023
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME
Net income, as reported	$ 425,369	$ 413,871	$ 867,418	$ 811,315
Other comprehensive income (loss ), net of tax:
Change in foreign currency translation adjustment	(31,104)	(5,775)	(61,799)	2,206
Available-for-sale investments:
Change in net unrealized gain (loss) on available-for-sale investments	535	(773)	758	2,408
Change in net gain (loss) on commodity derivatives	6,205	(1,266)	4,074	(1,266)
Other comprehensive income (loss)	(24,364)	(7,814)	(56,967)	3,348
Comprehensive income	$ 401,005	$ 406,057	$ 810,451	$ 814,663

XML

CONDENSED CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY - USD ($) shares in Thousands, $ in Thousands	Common stock	Additional Paid-in Capital	Retained Earnings	Accumulated Other Comprehensive Income (Loss)	Treasury stock	Total
Balance at Dec. 31, 2022	$ 6,418	$ 4,776,804	$ 9,001,173	$ (159,073)	$ (6,600,281)	$ 7,025,041
Balance (in shares) at Dec. 31, 2022	1,283,688				(239,088)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Stock-based compensation		15,743				15,743
Stock options/awards	$ 19	36,329				36,348
Stock options/awards (in shares)	3,704
Unrealized gain (loss), net on available-for-sale securities				3,181		3,181
Retirement of treasury stock	$ (850)	425	(4,692,425)		$ 4,692,850
Retirement of treasury stock (in shares)	(170,000)				170,000
Repurchase of common stock					$ (90,378)	(90,378)
Repurchase of common stock (in shares)					(1,688)
Foreign currency translation				7,981		7,981
Net income			397,444			397,444
Balance at Mar. 31, 2023	$ 5,587	4,829,301	4,706,192	(147,911)	$ (1,997,809)	7,395,360
Balance (in shares) at Mar. 31, 2023	1,117,392				(70,776)
Balance at Dec. 31, 2022	$ 6,418	4,776,804	9,001,173	(159,073)	$ (6,600,281)	7,025,041
Balance (in shares) at Dec. 31, 2022	1,283,688				(239,088)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Unrealized gain (loss), net on available-for-sale securities						2,408
Change in net gain (loss) on commodity derivatives						(1,266)
Net income						811,315
Balance at Jun. 30, 2023	$ 5,591	4,869,791	5,120,063	(155,725)	$ (1,998,256)	7,841,464
Balance (in shares) at Jun. 30, 2023	1,118,269				(70,784)
Balance at Mar. 31, 2023	$ 5,587	4,829,301	4,706,192	(147,911)	$ (1,997,809)	7,395,360
Balance (in shares) at Mar. 31, 2023	1,117,392				(70,776)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Stock-based compensation		17,176				17,176
Stock options/awards	$ 4	23,314				23,318
Stock options/awards (in shares)	877
Unrealized gain (loss), net on available-for-sale securities				(773)		(773)
Retirement of treasury stock					$ (447)	(447)
Repurchase of common stock (in shares)					(8)
Foreign currency translation				(5,775)		(5,775)
Change in net gain (loss) on commodity derivatives				(1,266)		(1,266)
Net income			413,871			413,871
Balance at Jun. 30, 2023	$ 5,591	4,869,791	5,120,063	(155,725)	$ (1,998,256)	7,841,464
Balance (in shares) at Jun. 30, 2023	1,118,269				(70,784)
Balance at Dec. 31, 2023	$ 5,613	4,975,115	5,939,736	(125,337)	$ (2,566,383)	8,228,744
Balance (in shares) at Dec. 31, 2023	1,122,592				(81,021)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Stock-based compensation		21,452				21,452
Stock options/awards	$ 11	38,381				38,392
Stock options/awards (in shares)	2,278
Unrealized gain (loss), net on available-for-sale securities				223		223
Repurchase of common stock					$ (120,245)	(120,245)
Repurchase of common stock (in shares)					(2,151)
Foreign currency translation				(30,695)		(30,695)
Change in net gain (loss) on commodity derivatives				(2,131)		(2,131)
Net income			442,049			442,049
Balance at Mar. 31, 2024	$ 5,624	5,034,948	6,381,785	(157,940)	$ (2,686,628)	8,577,789
Balance (in shares) at Mar. 31, 2024	1,124,870				(83,172)
Balance at Dec. 31, 2023	$ 5,613	4,975,115	5,939,736	(125,337)	$ (2,566,383)	8,228,744
Balance (in shares) at Dec. 31, 2023	1,122,592				(81,021)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Unrealized gain (loss), net on available-for-sale securities						758
Change in net gain (loss) on commodity derivatives						4,074
Net income						867,418
Balance at Jun. 30, 2024	$ 5,627	5,068,291	6,807,154	(182,304)	$ (5,832,445)	5,866,323
Balance (in shares) at Jun. 30, 2024	1,125,330				(141,950)
Balance at Mar. 31, 2024	$ 5,624	5,034,948	6,381,785	(157,940)	$ (2,686,628)	8,577,789
Balance (in shares) at Mar. 31, 2024	1,124,870				(83,172)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Stock-based compensation		19,645				19,645
Stock options/awards	$ 3	13,698				13,701
Stock options/awards (in shares)	460
Unrealized gain (loss), net on available-for-sale securities				535		535
Repurchase of common stock					$ (3,145,817)	(3,145,817)
Repurchase of common stock (in shares)					(58,778)
Foreign currency translation				(31,104)		(31,104)
Change in net gain (loss) on commodity derivatives				6,205		6,205
Net income			425,369			425,369
Balance at Jun. 30, 2024	$ 5,627	$ 5,068,291	$ 6,807,154	$ (182,304)	$ (5,832,445)	$ 5,866,323
Balance (in shares) at Jun. 30, 2024	1,125,330				(141,950)

XML

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands	6 Months Ended
	Jun. 30, 2024	Jun. 30, 2023
CASH FLOWS FROM OPERATING ACTIVITIES:
Net income	$ 867,418	$ 811,315
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization	39,913	32,384
Non-cash lease expense	6,599	2,828
Loss (gain) on disposal of property and equipment	1,849	(767)
Loss on impairment of intangibles	0	2,800
Loss on impairment of property and equipment	6,067
Stock-based compensation	41,262	34,603
Deferred income taxes	(13,294)	0
Effect on cash of changes in operating assets and liabilities:
Accounts receivable	(197,227)	(317,808)
Inventories	123,484	93,077
Prepaid expenses and other assets	(13,993)	(36,779)
Prepaid income taxes	(12,297)	(3,345)
Accounts payable	(33,505)	132,173
Accrued liabilities	2,715	20,491
Accrued promotional allowances	54,242	23,643
Accrued compensation	(26,954)	(17,616)
Income taxes payable	11,348	(1,219)
Other liabilities	(1,463)	(257)
Deferred revenue	(7,731)	(12,361)
Net cash provided by operating activities	848,433	763,162
CASH FLOWS FROM INVESTING ACTIVITIES:
Sales of available-for-sale investments	1,377,915	1,037,803
Purchases of available-for-sale investments	(342,121)	(1,091,126)
Purchases of property and equipment	(125,812)	(82,425)
Proceeds from sale of property and equipment	1,052	1,035
Additions to intangibles	(6,364)	(5,926)
Increase in other assets	(1,366)	(17,570)
Net cash provided by (used in) investing activities	903,304	(158,209)
CASH FLOWS FROM FINANCING ACTIVITIES:
Payments on short-term debt	(5,269)	(6,661)
Borrowings on credit facilities	750,000
Payments for debt issuance costs	(2,776)
Issuance of common stock	52,093	59,666
Purchases of common stock held in treasury	(3,234,523)	(90,825)
Net cash used in financing activities	(2,440,475)	(37,820)
Effect of exchange rate changes on cash and cash equivalents	(44,203)	(4,500)
NET (DECREASE) INCREASE IN CASH AND CASH EQUIVALENTS	(732,941)	562,633
CASH AND CASH EQUIVALENTS, beginning of period	2,297,675	1,307,141
CASH AND CASH EQUIVALENTS, end of period	1,564,734	1,869,774
Cash paid during the period for:
Interest	1,460	147
Income taxes	$ 276,359	$ 232,896

XML

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS - SUPPLEMENTAL DISCLOSURE OF NON-CASH ITEMS (Parenthetical) - USD ($) $ in Millions	6 Months Ended		18 Months Ended
	Jun. 30, 2024	Jun. 30, 2023	Jun. 30, 2024
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS - SUPPLEMENTAL DISCLOSURE OF NON-CASH ITEMS
Accrued liabilities for intangible assets			$ 9.6
Repurchase Of Common Stock	$ 0.9
Intangible assets incurred	3.2
Capital expenditures	$ 9.6	$ 2.0

XML

BASIS OF PRESENTATION

6 Months Ended

Jun. 30, 2024

BASIS OF PRESENTATION

BASIS OF PRESENTATION

1. BASIS OF PRESENTATION

Reference is made to the Notes to Consolidated Financial Statements, in Monster Beverage Corporation and Subsidiaries (the “Company”) Annual Report on Form 10-K for the year ended December 31, 2023 for a summary of significant accounting policies utilized by the Company and its consolidated subsidiaries and other disclosures, which should be read in conjunction with this Quarterly Report on Form 10-Q (“Form 10-Q”).

The Company’s condensed consolidated financial statements included in this Form 10-Q have been prepared in accordance with accounting principles generally accepted in the United States of America (“GAAP”) and Securities and Exchange Commission (“SEC”) rules and regulations applicable to interim financial reporting. They do not include all the information and footnote disclosures normally included in annual financial statements prepared in accordance with GAAP. The information set forth in these interim condensed consolidated financial statements for the three-and six-months ended June 30, 2024 and 2023, respectively, is unaudited and reflects all adjustments, which include only normal recurring adjustments and which in the opinion of management are necessary to make the interim condensed consolidated financial statements not misleading. Results of operations for periods covered by this report may not necessarily be indicative of results of operations for the full year.

The preparation of financial statements in conformity with GAAP necessarily requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting periods. Actual results could differ from these estimates.

Recent Accounting Pronouncements

In November 2023, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) No. 2023-07, Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosures. The amendments in this update improve reportable segment disclosure requirements, primarily through enhanced disclosures about significant segment expenses. The amendments in ASU No. 2023-07 are effective for fiscal years beginning after December 15, 2023. Early adoption is permitted. The Company is currently evaluating the impact ASU No. 2023-07 will have on its consolidated financial statements.

In December 2023, the FASB issued ASU No. 2023-09, Income Taxes (Topic 740): Improvements to Income Tax Disclosures. The amendments in this update primarily require more detailed disclosures related to the rate reconciliation and income taxes paid. The amendments in ASU No. 2023-09 are effective for fiscal years beginning after December 15, 2024. Early adoption is permitted. The Company is currently evaluating the impact ASU No. 2023-09 will have on its consolidated financial statements.

XML

REVENUE RECOGNITION

6 Months Ended

Jun. 30, 2024

REVENUE RECOGNITION

REVENUE RECOGNITION

2. REVENUE RECOGNITION

Revenues are accounted for in accordance with FASB Accounting Standards Codification (“ASC”) 606, “Revenue from Contracts with Customers”. The Company has four operating and reportable segments: (i) Monster Energy® Drinks segment (“Monster Energy® Drinks”), which is primarily comprised of the Company’s Monster Energy® drinks, Reign Total Body Fuel® high performance energy drinks, Reign Storm® total wellness energy drinks, Bang Energy® drinks and Monster Tour Water®, (ii) Strategic Brands segment (“Strategic Brands”), which is primarily comprised of the various energy drink brands acquired from The Coca-Cola Company (“TCCC”) in 2015 as well as the Company’s affordable energy brands, Predator® and Fury®, (iii) Alcohol Brands segment (“Alcohol Brands”), which is comprised of various craft beers, hard seltzers and flavored malt beverages (“FMBs”) and (iv) Other segment (“Other”), which is comprised of certain products sold by American Fruits and Flavors, LLC, a wholly-owned subsidiary of the Company, to independent third-party customers (the “AFF Third-Party Products”).

The Company’s Monster Energy® Drinks segment primarily generates net operating revenues by selling ready-to-drink packaged drinks primarily to bottlers and full service beverage distributors (“bottlers/distributors”). In some cases, the Company sells ready-to-drink packaged drinks directly to retail grocery and specialty chains, wholesalers, club stores, mass merchandisers, convenience and gas chains, drug stores, foodservice customers, value stores, e-commerce retailers and the military.

The Company’s Strategic Brands segment primarily generates net operating revenues by selling “concentrates” and/or “beverage bases” to authorized bottling and canning operations. Such bottlers generally combine the concentrates and/or beverage bases with sweeteners, water and other ingredients to produce ready-to-drink packaged energy drinks. The ready-to-drink packaged energy drinks are then sold by such bottlers to other bottlers/distributors and to retail grocery and specialty chains, wholesalers, club stores, mass merchandisers, convenience and gas chains, foodservice customers, drug stores, value stores, e-commerce retailers and the military. To a lesser extent, the Strategic Brands segment generates net operating revenues by selling certain ready-to-drink packaged energy drinks to bottlers/distributors.

The Company’s Alcohol Brands segment primarily generates operating revenues by selling kegged and ready-to-drink canned beers, hard seltzers and FMBs primarily to beer distributors in the United States.

The majority of the Company’s revenue is recognized when it satisfies a single performance obligation by transferring control of its products to a customer. Control is generally transferred when the Company’s products are either shipped or delivered based on the terms contained within the underlying contracts or agreements. Certain of the Company’s bottlers/distributors may also perform a separate function as a co-packer on the Company’s behalf. In such cases, control of the Company’s products passes to such bottlers/distributors when they notify the Company that they have taken possession or transferred the relevant portion of the Company’s finished goods. The Company’s general payment terms are short-term in duration. The Company does not have significant financing components or payment terms. The Company did not have any material unsatisfied performance obligations as of June 30, 2024 and December 31, 2023.

The Company excludes from revenues all taxes assessed by a governmental authority that are imposed on the sale of its products and collected from customers.

Distribution expenses to transport the Company’s products, where applicable, and warehousing expenses after manufacture are accounted for within operating expenses.

Promotional and other allowances (variable consideration) recorded as a reduction to net sales for the Company’s energy drink products primarily include consideration given to the Company’s non-alcohol bottlers/distributors or retail customers, including, but not limited to, the following:

● discounts granted off list prices to support price promotions to end-consumers by retailers;

● reimbursements given to the Company’s bottlers/distributors for agreed portions of their promotional spend with retailers, including slotting, shelf space allowances and other fees for both new and existing products;

● the Company’s agreed share of fees given to bottlers/distributors and/or directly to retailers for advertising, in-store marketing and promotional activities;

● the Company’s agreed share of slotting, shelf space allowances and other fees given directly to retailers, club stores and/or wholesalers;

● incentives given to the Company’s bottlers/distributors and/or retailers for achieving or exceeding certain predetermined sales goals;

● discounted or free products;

● contractual fees given to the Company’s bottlers/distributors related to sales made directly by the Company to certain customers that fall within the bottlers’/distributors’ sales territories; and

● commissions to TCCC based on the Company’s sales to wholly-owned subsidiaries of TCCC (the “TCCC Subsidiaries”) and/or to TCCC bottlers/distributors accounted for under the equity method by TCCC (the “TCCC Related Parties”).

The Company’s promotional allowance programs for its energy drink products are executed through separate agreements in the ordinary course of business. These agreements generally provide for one or more of the arrangements described above and are of varying durations, typically ranging from one week to one year. The Company’s promotional and other allowances for its energy drink products are calculated based on various programs with bottlers/distributors and retail customers, and accruals are established at the time of initial product sale for the Company’s anticipated liabilities. These accruals are based on agreed upon terms as well as the Company’s historical experience with similar programs and require management’s judgment with respect to estimating consumer

participation and/or bottler/distributor and retail customer performance levels. Differences between such estimated expenses and actual expenses for promotional and other allowance costs have historically been insignificant and are recognized in earnings in the period such differences are determined. Promotional and other allowances for our Alcohol Brands segment primarily include price promotions where permitted.

Amounts received pursuant to new and/or amended distribution agreements entered into with certain bottlers/distributors relating to the costs associated with terminating the Company’s prior distributors, are accounted for as deferred revenue and recognized as revenue ratably over the anticipated life of the respective distribution agreements, generally over 20 years.

The Company also enters into license agreements that generate revenues associated with third-party sales of non-beverage products bearing the Company’s trademarks including, but not limited to, clothing, hats, t-shirts, jackets, helmets and automotive wheels.

Management believes that adequate provision has been made for cash discounts, returns and spoilage based on the Company’s historical experience.

Disaggregation of Revenue

The following tables disaggregate the Company’s revenue by geographical markets and reportable segments:

	Three-Months Ended June 30, 2024
					Asia Pacific		Latin
	U.S. and				(including		America and
Net Sales	Canada		EMEA1		Oceania)		Caribbean		Total
Monster Energy® Drinks	$	1,100,063	$	351,985	$	132,078	$	158,682	$	1,742,808
Strategic Brands		49,579		41,938		13,010		4,695		109,222
Alcohol Brands		41,564		—		—		—		41,564
Other		7,003		—		—		—		7,003
Total Net Sales	$	1,198,209	$	393,923	$	145,088	$	163,377	$	1,900,597

	Three-Months Ended June 30, 2023
					Asia Pacific		Latin
	U.S. and				(including		America and
Net Sales	Canada		EMEA1		Oceania)		Caribbean		Total
Monster Energy® Drinks	$	1,068,887	$	339,522	$	138,478	$	140,000	$	1,686,887
Strategic Brands		47,226		42,050		7,828		2,586		99,690
Alcohol Brands		61,076		—		—		—		61,076
Other		7,308		—		—		—		7,308
Total Net Sales	$	1,184,497	$	381,572	$	146,306	$	142,586	$	1,854,961

¹Europe, Middle East and Africa (“EMEA”)

	Six-Months Ended June 30, 2024
					Asia Pacific		Latin
	U.S. and				(including		America and
Net Sales	Canada		EMEA1		Oceania)		Caribbean		Total
Monster Energy® Drinks	$	2,194,909	$	704,214	$	254,096	$	318,640	$	3,471,859
Strategic Brands		99,221		85,275		22,207		10,963		217,666
Alcohol Brands		97,634		—		—		—		97,634
Other		12,536		—		—		—		12,536
Total Net Sales	$	2,404,300	$	789,489	$	276,303	$	329,603	$	3,799,695

	Six-Months Ended June 30, 2023
					Asia Pacific		Latin
	U.S. and				(including		America and
Net Sales	Canada		EMEA1		Oceania)		Caribbean		Total
Monster Energy® Drinks	$	2,090,215	$	616,633	$	260,472	$	281,235	$	3,248,555
Strategic Brands		90,269		73,001		16,811		5,967		186,048
Alcohol Brands		107,366		—		—		—		107,366
Other		11,922		—		—		—		11,922
Total Net Sales	$	2,299,772	$	689,634	$	277,283	$	287,202	$	3,553,891

¹Europe, Middle East and Africa (“EMEA”)

Contract Liabilities

Amounts received from certain bottlers/distributors at inception of their distribution contracts or at the inception of certain sales/marketing programs are accounted for as deferred revenue. As of June 30, 2024 and December 31, 2023, the Company had $236.7 million and $246.2 million, respectively, of deferred revenue, which is included in current and long-term deferred revenue in the Company’s condensed consolidated balance sheets. During both the three-months ended June 30, 2024 and 2023, $10.0 million of deferred revenue was recognized in net sales. During both the six-months ended June 30, 2024 and 2023, $19.9 million of deferred revenue was recognized in net sales. See Note 10.

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LEASES

6 Months Ended

Jun. 30, 2024

LEASES

LEASES

3. LEASES

The Company leases identified assets consisting primarily of office and warehouse space, warehouse equipment and vehicles. Leases are classified as either finance leases or operating leases based on criteria in ASC 842, “Leases”. The Company’s leases have remaining lease terms of less than one year to 10 years, some of which include options to extend the leases for up to five years, and some of which include options to terminate the leases within one year.

The components of lease cost were as follows:

	Three-Months Ended June 30,				Six-Months Ended June 30,
	2024		2023		2024		2023
Operating lease cost	$	3,888	$	2,616	$	7,690	$	5,083
Short-term lease cost		2,151		1,070		4,821		2,049
Variable lease cost		228		226		441		441
Finance leases:
Amortization of right-of-use assets		489		202		1,084		325
Interest on lease liabilities		57		44		148		58
Finance lease cost		546		246		1,232		383
Total lease cost	$	6,813	$	4,158	$	14,184	$	7,956

Supplemental cash flow information was as follows:

	Six-Months Ended June 30,
	2024		2023
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash outflows from operating leases	$	7,355	$	4,818
Operating cash outflows from finance leases		148		58
Financing cash outflows from finance leases		5,267		1,683
Right-of-use assets obtained in exchange for lease obligations:
Finance leases		987		5,115
Operating leases		3,704		1,847

Supplemental balance sheet information was as follows:

		June 30,		December 31,
	Balance Sheet Location	2024		2023
Operating leases:
Right-of-use assets	Other assets	$	55,731	$	58,845
Current lease liabilities	Accrued liabilities	$	11,105	$	11,088
Noncurrent lease liabilities	Other liabilities		45,862		48,459
Total operating lease liabilities		$	56,967	$	59,547
Finance leases:
Right-of-use assets	Property and equipment, net	$	7,722	$	11,147
Current lease liabilities	Accrued liabilities	$	2,167	$	6,449
Noncurrent lease liabilities	Other liabilities		10		19
Total finance lease liabilities		$	2,177	$	6,468

Weighted-average remaining lease term and weighted-average discount rate for the Company’s leases were as follows:

	June 30,		December 31,
	2024		2023
Weighted-average remaining lease term in years:
Operating leases	6.0		6.3
Finance leases	0.4		0.7
Weighted-average discount rate:
Operating leases	4.7	%	4.7	%
Finance leases	6.3	%	6.3	%

The following table outlines maturities of the Company’s lease liabilities as of June 30, 2024:

	Undiscounted Future Lease Payments
	Operating Leases		Finance Leases
2024 (from July 1, 2024 to December 31, 2024)	$	6,779	$	2,000
2025		12,617		211
2026		10,356		2
2027		9,633		—
2028		8,089		—
2029 and thereafter		18,295		—
Total lease payments		65,769		2,213
Less imputed interest		(8,802)		(36)
Total	$	56,967	$	2,177

As of June 30, 2024, the Company did not have any significant leases that had not yet commenced.

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INVESTMENTS

6 Months Ended

Jun. 30, 2024

INVESTMENTS.

INVESTMENTS

4. INVESTMENTS

The following table summarizes the Company’s investments at December 31, 2023. The Company held no short-term or long-term investments at June 30, 2024 as all investments were liquidated during the three-months ended June 30, 2024 to fund a modified “Dutch auction” tender offer. See Note 14.

									Continuous		Continuous
			Gross		Gross				Unrealized		Unrealized
			Unrealized		Unrealized				Loss Position		Loss Position
	Amortized		Holding		Holding		Fair		less than		greater than
December 31, 2023	Cost		Gains		Losses		Value		12 Months		12 Months
Available-for-sale
Short-term:
Commercial paper	$	163,775	$	—	$	1	$	163,774	$	1	$	—
Certificates of deposit		15,590		—		—		15,590		—		—
Municipal securities		361		—		—		361		—		—
U.S. government agency securities		116,524		90		66		116,548		66		—
U.S. treasuries		412,936		205		1,084		412,057		1,084		—
Corporate bonds		247,340		89		154		247,275		154		—
Long-term:
U.S. government agency securities		23,485		51		5		23,531		5		—
U.S. treasuries		35,896		79		8		35,967		8		—
Corporate bonds		16,903		32		2		16,933		2		—
Total	$	1,032,810	$	546	$	1,320	$	1,032,036	$	1,320	$	—

During the three-and six-months ended June 30, 2024 and 2023, realized gains or losses recognized on the sale of investments were not significant.

The Company’s investments at December 31, 2023 carried investment grade credit ratings.

The following table summarizes the underlying contractual maturities of the Company’s investments at December 31, 2023. The Company held no short-term or long-term investments at June 30, 2024.

	December 31, 2023
	Amortized Cost		Fair Value
Less than 1 year:
Commercial paper	$	163,775	$	163,774
Municipal securities		361		361
U.S. government agency securities		116,524		116,548
Certificates of deposit		15,590		15,590
U.S. treasuries		412,936		412,057
Corporate bonds		247,340		247,275
Due 1 - 10 years:
U.S. treasuries		35,896		35,967
U.S. government agency securities		23,485		23,531
Corporate bonds		16,903		16,933
Total	$	1,032,810	$	1,032,036

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FAIR VALUE OF CERTAIN FINANCIAL ASSETS AND LIABILITIES

6 Months Ended

Jun. 30, 2024

FAIR VALUE OF CERTAIN FINANCIAL ASSETS AND LIABILITIES

FAIR VALUE OF CERTAIN FINANCIAL ASSETS AND LIABILITIES

5. FAIR VALUE OF CERTAIN FINANCIAL ASSETS AND LIABILITIES

ASC 820, “Fair Value Measurement”, provides a framework for measuring fair value and requires disclosures regarding fair value measurements. ASC 820 defines fair value as the price that would be received on the sale of an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. ASC 820 also establishes a fair value hierarchy that requires an entity to maximize the use of observable inputs, where available. The three levels of inputs required by the standard that the Company uses to measure fair value are summarized below.

● Level 1: Quoted prices in active markets for identical assets or liabilities.

● Level 2: Observable inputs other than Level 1 prices, such as quoted prices for similar assets or liabilities, quoted prices in markets that are not active, or other inputs that are observable or can be corroborated by observable market data for substantially the full term of the related assets or liabilities.

● Level 3: Unobservable inputs that are supported by little or no market activity and that are significant to the fair value of the assets or liabilities.

ASC 820 requires the use of observable market inputs (quoted market prices) when measuring fair value and requires a Level 1 quoted price to be used to measure fair value whenever possible.

The following tables present the fair value of the Company’s financial assets and liabilities that are recorded at fair value on a recurring basis, segregated among the appropriate levels within the fair value hierarchy at:

June 30, 2024	Level 1		Level 2		Level 3		Total
Cash	$	948,105	$	—	$	—	$	948,105
Money market funds		576,964		—		—		576,964
Certificates of deposit		—		39,665		—		39,665
Foreign currency derivatives		—		(214)		—		(214)
Commodity derivatives		—		5,600		—		5,600
Total	$	1,525,069	$	45,051	$	—	$	1,570,120
Amounts included in:
Cash and cash equivalents	$	1,525,069	$	39,665	$	—	$	1,564,734
Accounts receivable, net		—		8,660		—		8,660
Accrued liabilities		—		(2,915)		—		(2,915)
Other liabilities		—		(359)		—		(359)
Total	$	1,525,069	$	45,051	$	—	$	1,570,120

December 31, 2023	Level 1		Level 2		Level 3		Total
Cash	$	1,105,701	$	—	$	—	$	1,105,701
Money market funds		960,873		—		—		960,873
Certificates of deposit		—		33,824		—		33,824
Commercial paper		—		163,774		—		163,774
Corporate bonds		—		264,208		—		264,208
Municipal securities		—		361		—		361
U.S. government agency securities		—		159,585		—		159,585
U.S. treasuries		—		641,385		—		641,385
Foreign currency derivatives		—		(1,083)		—		(1,083)
Commodity derivatives		—		4,410		—		4,410
Total	$	2,066,574	$	1,266,464	$	—	$	3,333,038
Amounts included in:
Cash and cash equivalents	$	2,066,574	$	231,101	$	—	$	2,297,675
Short-term investments		—		955,605		—		955,605
Accounts receivable, net		—		4,618		—		4,618
Other assets		—		316		—		316
Investments		—		76,431		—		76,431
Accrued liabilities		—		(1,607)		—		(1,607)
Total	$	2,066,574	$	1,266,464	$	—	$	3,333,038

At December 31, 2023, all of the Company’s short-term and long-term investments were classified within Level 1 or Level 2 of the fair value hierarchy. At June 30, 2024, the Company held no investments. The Company’s valuation of its Level 1 investments is based on quoted market prices in active markets for identical securities. The Company’s valuation of its Level 2 investments is based on other observable inputs, specifically a market approach which utilizes valuation models, pricing systems, mathematical tools and other relevant information for the same or similar securities. The Company’s valuation of its Level 2 foreign currency exchange contracts is based on quoted market prices of the same or similar instruments, adjusted for counterparty risk. There were no transfers between Level 1 and Level 2 measurements during the three- and six-months ended June 30, 2024, or during the year-ended December 31, 2023, and there were no changes in the Company’s valuation techniques.

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DERIVATIVE INSTRUMENTS AND HEDGING ACTIVITIES

6 Months Ended

Jun. 30, 2024

DERIVATIVE INSTRUMENTS AND HEDGING ACTIVITIES

DERIVATIVE INSTRUMENTS AND HEDGING ACTIVITIES

6. DERIVATIVE INSTRUMENTS AND HEDGING ACTIVITIES

The Company accounts for its derivative instruments and hedging activities under ASC 815, “Derivatives and Hedging.” The following table presents the fair values of the Company’s derivative instruments:

	Fair value
Derivatives designated as	June 30,		December 31,
hedging instruments	2024		2023		Balance Sheet location
Assets:
Commodity contracts	$	7,450	$	4,480	Accounts receivable, net
Commodity contracts	$	—	$	316	Other assets
Liabilities:
Commodity contracts	$	(1,491)	$	(386)	Accrued liabilities
Commodity contracts	$	(359)	$	—	Other liabilities

	Fair value
Derivatives not designated as	June 30,		December 31,
hedging instruments	2024		2023		Balance Sheet location
Assets:
Foreign currency exchange contracts	$	1,210	$	138	Accounts receivable, net
Liabilities:
Foreign currency exchange contracts	$	(1,424)	$	(1,221)	Accrued liabilities

Cash Flow Hedging Strategy

The Company uses cash flow hedges to minimize the variability in cash flows of forecasted transactions caused by fluctuations in commodity prices. The changes in the fair values of derivatives designated as cash flow hedges are recorded in accumulated other comprehensive income (loss) (“AOCI”) and are reclassified into the line item in our condensed consolidated statement of income in which the hedged items are recorded in the same period that the hedged items affect earnings. The changes in the fair values of hedges that are determined to be ineffective are immediately reclassified from AOCI into earnings. The maximum length of time for which the Company hedges its exposure to the variability in future cash flows is currently less than two years.

The Company has entered into commodity hedge contracts to mitigate the price risk associated with a portion of its forecasted aluminum purchases. These derivative instruments were designated as part of the Company’s commodity cash flow hedging program. The objective of this hedging program is to reduce the variability of cash flows associated with future purchases of aluminum. The total notional values of derivatives that were designated and qualified for this program were $143.8 million and $98.3 million as of June 30, 2024 and December 31, 2023, respectively.

The following table presents the impact that changes in the fair values of derivatives designated as cash flow hedges had on other comprehensive income, AOCI and earnings:

Three-Months Ended June 30, 2024
				Gain (loss)
Derivatives designated as	Gain (loss)		Location of gain (loss)	reclassified from
hedging instruments	recognized in AOCI		recognized in income	AOCI into income
Commodity contracts	$	6,205	Cost of sales	$	—

Three-Months Ended June 30, 2023
				Gain (loss)
Derivatives designated as		Gain (loss) recognized	Location of gain (loss)	reclassified from
hedging instruments	in AOCI		recognized in income	AOCI into income
Commodity contracts	$	(1,266)	Cost of sales	$	—

Six-Months Ended June 30, 2024
				Gain (loss)
Derivatives designated as	Gain (loss)		Location of gain (loss)	reclassified from
hedging instruments	recognized in AOCI		recognized in income	AOCI into income
Commodity contracts	$	8,483	Cost of sales	$	(966)

Six-Months Ended June 30, 2023
				Gain (loss)
Derivatives designated as	Gain (loss)		Location of gain (loss)	reclassified from
hedging instruments	recognized in AOCI		recognized in income	AOCI into income
Commodity contracts	$	(1,266)	Cost of sales	$	—

As of June 30, 2024, the Company estimates that it will reclassify into earnings net gains (losses) of $8.4 million from the amount recorded in AOCI as the anticipated cash flows occur during the next 12 months.

Economic (Non-Designated) Hedging Strategy

The Company is exposed to foreign currency exchange rate risks related primarily to its foreign business operations. During the three- and six-months ended June 30, 2024 and 2023, the Company entered into forward currency exchange contracts with financial institutions to create an economic hedge to specifically manage a portion of the foreign exchange risk exposure associated with certain consolidated subsidiaries’ non-functional currency denominated assets and liabilities. All foreign currency exchange contracts of the Company that were outstanding as of June 30, 2024 have terms of approximately one month or less. The Company does not enter into forward currency exchange contracts for speculation or trading purposes.

The Company has not designated its foreign currency exchange contracts as hedge transactions. Therefore, gains and losses on the Company’s foreign currency exchange contracts are recognized in interest and other income, net, in the condensed consolidated statements of income, and are largely offset by the changes in the fair value of the underlying economically hedged item. The total notional values of derivatives related to our foreign currency economic hedges were $239.3 million and $282.7 million as of June 30, 2024 and December 31, 2023, respectively.

The net gains (losses) on derivatives not designated as hedging instruments in the condensed consolidated statements of income were as follows:

		Gain (loss) recognized
		in income on derivatives
		Three-Months Ended
Derivatives not designated as	Location of gain (loss)	June 30,		June 30,
hedging instruments	recognized in income on derivatives	2024		2023
Foreign currency exchange contracts	Interest and other income, net	$	(2,633)	$	(1,924)

		Gain (loss) recognized
		in income on derivatives
		Six-Months Ended
Derivatives not designated as	Location of gain (loss)	June 30,		June 30,
hedging instruments	recognized in income on derivatives	2024		2023
Foreign currency exchange contracts	Interest and other income, net	$	2,711	$	(9,775)

Certain of the Company’s counterparty agreements contain provisions that require the Company to post collateral on derivative instruments in a net liability position. As of June 30, 2024, $7.4 million was held as collateral and $1.2 million was posted as collateral.

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INVENTORIES

6 Months Ended

Jun. 30, 2024

INVENTORIES

INVENTORIES

7. INVENTORIES

Inventories consist of the following at:

	June 30,		December 31,
	2024		2023
Raw materials	$	271,341	$	330,021
Work in process		1,526		1,403
Finished goods		561,537		639,982
	$	834,404	$	971,406

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PROPERTY AND EQUIPMENT, NET

6 Months Ended

Jun. 30, 2024

PROPERTY AND EQUIPMENT, NET

PROPERTY AND EQUIPMENT, NET

8. PROPERTY AND EQUIPMENT, NET

Property and equipment consist of the following at:

	June 30,		December 31,
	2024		2023
Land	$	158,505	$	152,253
Leasehold improvements		33,264		37,946
Furniture and fixtures		11,390		11,422
Office and computer equipment		26,833		25,560
Computer software		6,636		5,344
Equipment		462,428		426,466
Buildings		217,214		211,951
Vehicles		69,902		69,527
Assets under construction		261,279		211,562
		1,247,451		1,152,031
Less: accumulated depreciation and amortization		(286,489)		(261,235)
	$	960,962	$	890,796

Total depreciation and amortization expense was $17.8 million and $14.7 million for the three-months ended June 30, 2024 and 2023, respectively. Total depreciation and amortization expense was $36.9 million and $29.5 million for the six-months ended June 30, 2024 and 2023, respectively.

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GOODWILL AND OTHER INTANGIBLE ASSETS

6 Months Ended

Jun. 30, 2024

GOODWILL AND OTHER INTANGIBLE ASSETS

GOODWILL AND OTHER INTANGIBLE ASSETS

9.GOODWILL AND OTHER INTANGIBLE ASSETS

The following is a roll-forward of goodwill for the six-months ended June 30, 2024 and 2023 by reportable segment:

	Monster
	Energy®		Strategic		Alcohol
	Drinks		Brands		Brands		Other		Total
Balance at December 31, 2023	$	693,644	$	637,999	$	86,298	$	—	$	1,417,941
Acquisitions		—		—		—		—		—
Balance at June 30, 2024	$	693,644	$	637,999	$	86,298	$	—	$	1,417,941

	Monster
	Energy®		Strategic		Alcohol
	Drinks		Brands		Brands		Other		Total
Balance at December 31, 2022	$	693,644	$	637,999	$	86,298	$	—	$	1,417,941
Acquisitions		—		—		—		—		—
Balance at June 30, 2023	$	693,644	$	637,999	$	86,298	$	—	$	1,417,941

Intangible assets consist of the following at:

	June 30,		December 31,
	2024		2023
Amortizing intangibles	$	144,577	$	144,582
Accumulated amortization		(77,668)		(74,699)
		66,909		69,883
Non-amortizing intangibles		1,366,417		1,357,256
	$	1,433,326	$	1,427,139

Amortizing intangibles primarily consist of customer relationships. All amortizing intangibles have been assigned an estimated finite useful life and such intangibles are amortized on a straight-line basis over the number of years that approximate their respective useful lives, generally ten to fifteen years. Total amortization expense was $1.7 million and $0.9 million for the three-months ended June 30, 2024 and 2023, respectively. Total amortization expense was $3.0 million and $2.9 million for the six-months ended June 30, 2024 and 2023, respectively. For the three- and six-months ended June 30, 2024, no impairment charges were recorded to intangible assets. For both the three- and six-months ended June 30, 2023, impairment charges of $2.8 million were recorded to non-amortizing intangibles.

The following is the future estimated amortization expense related to amortizing intangibles as of June 30, 2024:

2024 (from July 1, 2024 to December 31, 2024)	$	4,461
2025		5,947
2026		5,947
2027		5,946
2028		5,945
2029 and thereafter		38,663
	$	66,909

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DISTRIBUTION AGREEMENTS

6 Months Ended

Jun. 30, 2024

DISTRIBUTION AGREEMENTS

DISTRIBUTION AGREEMENTS

10. DISTRIBUTION AGREEMENTS

In the normal course of business, amounts received pursuant to new and/or amended distribution agreements entered into with certain bottlers/distributors, relating to the costs associated with terminating agreements with the Company’s prior distributors, or at the inception of certain sales/marketing programs are accounted for as deferred revenue and are recognized as revenue ratably over the anticipated life of the respective agreement, generally 20 years or program duration, as the case may be. Revenue recognized was $10.0 million for both the three-months ended June 30, 2024 and 2023. Revenue recognized was $19.9 million for both the six-months ended June 30, 2024 and 2023.

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DEBT

6 Months Ended

Jun. 30, 2024

DEBT

DEBT

11. DEBT

The Company’s long-term debt consisted of the following:

	June 30,		December 31,
	2024		2023
Term loan	$	750,000	$	—
Revolving credit facility		—		—
Total debt		750,000		—
Less: unamortized debt issuance costs		(1,260)		—
Total debt, net of unamortized debt issuance costs		748,740		—
Less: current portion of long-term debt		—		—
Long-term debt	$	748,740	$	—

In May 2024, the Company entered into a credit agreement with JPMorgan Chase Bank, N.A., as administrative agent, and certain other lenders, which provides for senior unsecured credit facilities in an aggregate principal amount of $1.50 billion (collectively, the “Credit Facilities”). The Credit Facilities consist of a $750.0 million term loan (the “Term Loan”) and up to $750.0 million in multicurrency revolving loan commitments (the “Revolving Credit Facility”). The Term Loan matures May 2027 and the Revolving Credit Facility matures May 2029. As of June 30, 2024, the Company was in compliance with all covenants under the Credit Facilities.

Borrowings under the Credit Facilities bear interest at a variable rate per annum equal to the applicable rate plus margin (as defined in the Credit Facilities). The interest rate in effect on the Term Loan was 6.30% as of June 30, 2024. No borrowings were outstanding under the Revolving Credit Facility as of June 30, 2024.

Borrowings under the Credit Facilities are due on the respective maturity date. Borrowings may be repaid at any time during the term of the Credit Facilities and, in the case of the Revolving Credit Facility, may be reborrowed prior to the maturity date.

Additionally, the Company has a line of credit of up to $15.0 million with HSBC Bank (China) Company Limited, Shanghai Branch. At June 30, 2024, the interest rate on borrowings under the line of credit was 5.5%. As of June 30, 2024, no amount was outstanding on this line of credit.

Based on Level 2 inputs, the carrying value of the Company’s debt approximates fair value, as borrowings are subject to variable interest rates that adjust with changes in market rates and market conditions and the current interest rate approximates that which would be available under similar financial arrangements.

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COMMITMENTS AND CONTINGENCIES

6 Months Ended

Jun. 30, 2024

COMMITMENTS AND CONTINGENCIES

COMMITMENTS AND CONTINGENCIES

12. COMMITMENTS AND CONTINGENCIES

The Company had purchase commitments aggregating approximately $262.5 million at June 30, 2024, which represented commitments made by the Company and its subsidiaries to various suppliers of raw materials for the production of its products. These obligations vary in terms but are generally satisfied within one year.

The Company had contractual obligations aggregating approximately $432.1 million at June 30, 2024, which related primarily to sponsorships and other marketing activities.

Litigation — From time to time in the normal course of business, the Company is named in litigation, including labor and employment matters, personal injury matters, consumer class actions, intellectual property matters and claims from prior distributors. Although it is not possible to predict the ultimate outcome of such litigation, based on the facts known to the Company, management believes that such litigation in aggregate will likely not have a material adverse effect on the Company’s financial position or results of operations.

The Company evaluates, on a quarterly basis, developments in legal proceedings and other matters that could cause an increase or decrease in the amount of the liability that is accrued, if any, and any related insurance reimbursements. As of June 30, 2024 and December 31, 2023, $0.4 million and $0.3 million, respectively, of loss contingencies were included in the Company’s accompanying condensed consolidated balance sheets.

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ACCUMULATED OTHER COMPREHENSIVE LOSS

6 Months Ended

Jun. 30, 2024

ACCUMULATED OTHER COMPREHENSIVE LOSS

ACCUMULATED OTHER COMPREHENSIVE LOSS

13. ACCUMULATED OTHER COMPREHENSIVE LOSS

Changes in accumulated other comprehensive loss by component, after tax, for the six-months ended June 30, 2024 and 2023 are as follows:

	Accumulated				Unrealized
	Net Gains		Currency		Gains (Losses)
	(Losses) on		Translation		on Available-
	Commodity		Gains		for-Sale
	Derivatives		(Losses)		Securities		Total
Balance at December 31, 2023	$	4,410	$	(128,989)	$	(758)	$	(125,337)
Other comprehensive income (loss) before reclassifications		4,074		(61,799)		758		(56,967)
Net current-period other comprehensive income (loss)		4,074		(61,799)		758		(56,967)
Balance at June 30, 2024	$	8,484	$	(190,788)	$	—	$	(182,304)

	Accumulated				Unrealized
	Net Gains		Currency		Gains (Losses)
	(Losses) on		Translation		on Available-
	Commodity		Gains		for-Sale
	Derivatives		(Losses)		Securities		Total
Balance at December 31, 2022	$	—	$	(153,230)	$	(5,843)	$	(159,073)
Other comprehensive income (loss) before reclassifications		(1,266)		2,206		2,408		3,348
Net current-period other comprehensive income (loss)		(1,266)		2,206		2,408		3,348
Balance at June 30, 2023	$	(1,266)	$	(151,024)	$	(3,435)	$	(155,725)

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TREASURY STOCK

6 Months Ended

Jun. 30, 2024

TREASURY STOCK

TREASURY STOCK

14. TREASURY STOCK

On November 2, 2022, the Company’s Board of Directors authorized a share repurchase program for the purchase of up to an additional $500.0 million of the Company’s outstanding common stock (the “November 2022 Repurchase Plan”). During the three-months ended June 30, 2024, the Company repurchased approximately 2.2 million shares of its common stock at an average purchase price of $49.55 per share, for a total amount of approximately $107.7 million (excluding broker commissions), under the November 2022 Repurchase Plan. Subsequent to June 30, 2024, the Company repurchased approximately 0.7 million shares of its common stock at an average purchase price of $49.82 per share, for a total amount of approximately $34.7 million (excluding broker commissions), under the November 2022 Repurchase Plan. As of August 6, 2024, no amount remained available for repurchase under the November 2022 Repurchase Plan.

On November 7, 2023, the Company’s Board of Directors authorized a share repurchase program for the purchase of up to an additional $500.0 million of the Company’s outstanding common stock (the “November 2023 Repurchase Plan”). During the three-months ended June 30, 2024, no shares were repurchased under the November 2023 Repurchase Plan. Subsequent to June 30, 2024, the Company repurchased approximately 3.2 million shares of its common stock at an average purchase price of $49.54 per share, for a total

amount of approximately $157.6 million (excluding broker commissions), under the November 2023 Repurchase Plan. As of August 6, 2024, $342.4 million remained available for repurchase under the November 2023 Repurchase Plan.

The aggregate amount of the Company’s outstanding common stock that remains available for repurchase under all previously authorized repurchase plans is $342.4 million as of August 6, 2024.

On May 1, 2024, the Board of Directors authorized the Company to execute a modified “Dutch auction” tender offer to repurchase up to $3.0 billion of its outstanding shares of common stock. On May 8, 2024, the Company commenced the tender offer, with such offer expiring on June 5, 2024. On June 10, 2024, the Company accepted for purchase a total of approximately 56.6 million shares of common stock at a purchase price of $53.00 per share, for an aggregate purchase price of approximately $3.0 billion. The repurchase was funded with approximately $2.25 billion of cash on hand and approximately $750 million in borrowings. The cost of these shares and the fees relating to the tender offer are included in common stock in treasury in the accompanying condensed consolidated balance sheet at June 30, 2024.

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STOCK-BASED COMPENSATION

6 Months Ended

Jun. 30, 2024

STOCK-BASED COMPENSATION

STOCK-BASED COMPENSATION

15. STOCK-BASED COMPENSATION

The Company has two stock-based compensation plans under which shares were available for grant at June 30, 2024: (i) the Monster Beverage Corporation 2020 Omnibus Incentive Plan, including the Monster Beverage Corporation Deferred Compensation Plan as a sub-plan thereunder, and (ii) the Monster Beverage Corporation 2017 Compensation Plan for Non-Employee Directors as Amended and Restated on February 23, 2022, including the Monster Beverage Corporation Deferred Compensation Plan for Non-Employee Directors as a sub-plan thereunder.

The Company recorded $18.8 million and $18.6 million of compensation expense relating to outstanding options, restricted stock units, performance share units and other share-based awards during the three-months ended June 30, 2024 and 2023, respectively. The Company recorded $41.3 million and $34.6 million of compensation expense relating to outstanding options, restricted stock units, performance share units and other share-based awards during the six-months ended June 30, 2024 and 2023, respectively.

The tax benefit for tax deductions from non-qualified stock option exercises, disqualifying dispositions of incentive stock options and vesting of restricted stock units and performance share units for the three-months ended June 30, 2024 and 2023 was $1.5 million and $4.1 million, respectively. The tax benefit for tax deductions from non-qualified stock option exercises, disqualifying dispositions of incentive stock options and vesting of restricted stock units and performance share units for the six-months ended June 30, 2024 and 2023 was $9.0 million and $30.0 million, respectively.

Stock Options

Under the Company’s stock-based compensation plans, all stock options granted as of June 30, 2024 were granted at prices based on the fair value of the Company’s common stock on the date of grant. The Company records compensation expense for stock options based on the estimated fair value of the options on the date of grant using the Black-Scholes-Merton option pricing formula with the assumptions included in the table below. The Company uses historical data to determine the exercise behavior, volatility and forfeiture rate of the options.

The following weighted-average assumptions were used to estimate the fair value of options granted during:

	Three-Months Ended June 30,				Six-Months Ended June 30,
	2024		2023		2024		2023
Dividend yield	0.0	%	0.0	%	0.0	%	0.0	%
Expected volatility	27.5	%	27.4	%	27.5	%	27.6	%
Risk-free interest rate	4.4	%	3.7	%	4.3	%	3.7	%
Expected term	6.4	years	6.3	years	6.4	years	6.3	years

Expected Volatility: The Company uses historical volatility as it provides a reasonable estimate of the expected volatility. Historical volatility is based on the most recent volatility of the stock price over a period of time equivalent to the expected term of the option.

Risk-Free Interest Rate: The risk-free interest rate is based on the U.S. treasury zero-coupon yield curve in effect at the time of grant for the expected term of the option.

Expected Term: The Company’s expected term represents the weighted-average period that the Company’s stock options are expected to be outstanding. The expected term is based on the expected time to post-vesting exercise of options by employees. The Company uses historical exercise patterns of previously granted options to derive employee behavioral patterns used to forecast expected exercise patterns.

The following table summarizes the Company’s activities with respect to its stock option plans as follows:

				Weighted-
				Average
		Weighted-		Remaining
	Number of	Average		Contractual
	Shares	Exercise Price		Term	Aggregate
Options	(in thousands)	Per Share		(in years)	Intrinsic Value
Outstanding at January 1, 2024	24,983	$	33.64	5.8	$	598,866
Granted 01/01/24 - 03/31/24	4,332	$	60.29
Granted 04/01/24 - 06/30/24	62	$	51.89
Exercised	(1,914)	$	27.22
Cancelled or forfeited	(165)	$	48.17
Outstanding at June 30, 2024	27,298	$	38.27	6.1	$	366,872
Vested and expected to vest in the future at June 30, 2024	26,202	$	37.70	6.0	$	363,597
Exercisable at June 30, 2024	15,087	$	29.21	4.1	$	313,348

The weighted-average grant-date fair value of options granted during the three-months ended June 30, 2024 and 2023 was $19.52 per share and $21.14 per share, respectively. The weighted-average grant-date fair value of options granted during the six-months ended June 30, 2024 and 2023 was $22.64 per share and $18.25 per share, respectively.

The total intrinsic value of options exercised during the three-months ended June 30, 2024 and 2023 was $10.2 million and $26.9 million, respectively. The total intrinsic value of options exercised during the six-months ended June 30, 2024 and 2023 was $57.8 million and $157.9 million, respectively.

Cash received from option exercises under all plans for the three-months ended June 30, 2024 and 2023 was $13.7 million and $23.3 million, respectively. Cash received from option exercises under all plans for the three-months ended June 30, 2024 and 2023 was $52.1 million and $59.7 million, respectively.

At June 30, 2024, there was $162.4 million of total unrecognized compensation expense related to non-vested options granted to employees under the Company’s stock-based compensation plans. That cost is expected to be recognized over a weighted-average period of 3.4 years.

Restricted Stock Units and Performance Share Units

The cost of stock-based compensation for restricted stock units and performance share units is measured based on the closing fair market value of the Company’s common stock at the date of grant. In the event that the Company has the option and intent to settle a restricted stock unit or performance share unit in cash, the award is classified as a liability and revalued at each balance sheet date.

The following table summarizes the Company’s activities with respect to non-vested restricted stock units and performance share units as follows:

	Number of Shares	Weighted Average Grant-
	(in thousands)	Date Fair Value
Non-vested at January 1, 2024	1,964	$	40.95
Granted 01/01/24 - 03/31/241	502	$	57.04
Granted 04/01/24 - 06/30/24	27	$	49.12
Vested	(824)	$	40.69
Forfeited/cancelled	(1)	$	30.62
Non-vested at June 30, 2024	1,668	$	46.06

¹The grant activity for performance share units is recorded based on the target performance level earning 100% of target performance share units. The actual number of performance share units earned could range from 0% to 200% of target depending on the achievement of pre-established performance goals.

The weighted-average grant-date fair value of restricted stock units and/or performance share units granted during the three-months ended June 30, 2024 and 2023 was $49.12 and $59.17 per share, respectively. The weighted-average grant-date fair value of restricted stock units and/or performance share units granted during the six-months ended June 30, 2024 and 2023 was $59.58 and $48.93 per share, respectively.

As of June 30, 2024, 1.6 million of restricted stock units and performance share units are expected to vest over their respective terms.

At June 30, 2024, total unrecognized compensation expense relating to non-vested restricted stock units and performance share units was $43.9 million, which is expected to be recognized over a weighted-average period of 1.6 years.

Other Share-Based Awards

The Company has granted other share-based awards to certain employees that are payable in cash. These awards are classified as liabilities and are valued based on the fair value of the award at the grant date and are remeasured at each reporting date until settlement, with compensation expense being recognized in proportion to the completed requisite service period up until date of settlement. At June 30, 2024, other share-based awards outstanding included grants that vest over three years payable in the first quarters of 2025, 2026 and 2027.

At June 30, 2024, there was $0.1 million of total unrecognized compensation expense related to nonvested other share-based awards granted to employees under the Company’s stock-based compensation plans. That cost is expected to be recognized over a weighted-average period of 0.5 years.

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INCOME TAXES

6 Months Ended

Jun. 30, 2024

INCOME TAXES

INCOME TAXES

16. INCOME TAXES

The following is a roll-forward of the Company’s total gross unrecognized tax benefits, not including interest and penalties, for the six-months ended June 30, 2024:

	Gross Unrecognized
	Tax Benefits
Balance at December 31, 2023	$	3,109
Additions for tax positions related to the current year		—
Additions for tax positions related to the prior years		—
Decreases for tax positions related to the prior years		—
Balance at June 30, 2024	$	3,109

The Company recognizes accrued interest and penalties related to unrecognized tax benefits in the provision for income taxes in the Company’s condensed consolidated financial statements. As of June 30, 2024, the Company had approximately $0.7 million in accrued interest and penalties related to unrecognized tax benefits. If the Company were to prevail on all uncertain tax positions, the resultant impact on the Company’s effective tax rate would not be significant. It is expected that any change in the amount of unrecognized tax benefits within the next 12 months will not be significant.

The Company is subject to U.S. federal income tax as well as to income tax in multiple state and foreign jurisdictions.

The Company is in various stages of examination with certain states and certain foreign jurisdictions. The Company’s 2020 through 2023 U.S. federal income tax returns are subject to examination by the IRS. The Company’s state income tax returns are subject to examination for the 2019 through 2023 tax years. The United Kingdom and Ireland income tax returns are subject to examination for the 2019 through 2023 tax years.

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EARNINGS PER SHARE

6 Months Ended

Jun. 30, 2024

EARNINGS PER SHARE

EARNINGS PER SHARE

17. EARNINGS PER SHARE

A reconciliation of the weighted-average shares used in the basic and diluted earnings per common share computations is presented below (in thousands):

	Three-Months Ended		Six-Months Ended
	June 30,		June 30,
	2024	2023	2024	2023
Weighted-average shares outstanding:
Basic	1,029,268	1,047,065	1,035,175	1,045,993
Dilutive	8,110	13,028	9,188	13,674
Diluted	1,037,378	1,060,093	1,044,363	1,059,667

For the three-months ended June 30, 2024 and 2023, options and awards outstanding totaling 8.8 million shares and 4.1 million shares, respectively, were excluded from the calculations as their effect would have been antidilutive. For the six-months ended June 30, 2024 and 2023, options and awards outstanding totaling 6.9 million shares and 2.6 million shares, respectively, were excluded from the calculations as their effect would have been antidilutive.

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SEGMENT INFORMATION

6 Months Ended

Jun. 30, 2024

SEGMENT INFORMATION

SEGMENT INFORMATION

18. SEGMENT INFORMATION

The Company has four operating and reportable segments: (i) Monster Energy® Drinks segment, which is primarily comprised of the Company’s Monster Energy® drinks, Reign Total Body Fuel® high performance energy drinks, Reign Storm® total wellness energy drinks, Bang Energy® drinks and Monster Tour Water®, (ii) Strategic Brands segment, which is primarily comprised of the various energy drink brands acquired from TCCC in 2015 as well as the Company’s affordable energy brands, Predator® and Fury®, (iii) Alcohol Brands segment, which is comprised of various craft beers, hard seltzers and FMBs and (iv) Other segment, which is comprised of the AFF Third-Party Products.

The Company’s Monster Energy® Drinks segment primarily generates net operating revenues by selling ready-to-drink packaged drinks primarily to bottlers/distributors. In some cases, the Company sells ready-to-drink packaged drinks directly to retail grocery and specialty chains, wholesalers, club stores, mass merchandisers, convenience and gas chains, drug stores, foodservice customers, value stores, e-commerce retailers and the military.

The Company’s Strategic Brands segment primarily generates net operating revenues by selling “concentrates” and/or “beverage bases” to authorized bottling and canning operations. Such bottlers generally combine the concentrates and/or beverage bases with sweeteners, water and other ingredients to produce ready-to-drink packaged energy drinks. The ready-to-drink packaged energy drinks are then sold by such bottlers to other bottlers/distributors and to retail grocery and specialty chains, wholesalers, club stores, mass merchandisers, convenience and gas chains, foodservice customers, drug stores, value stores, e-commerce retailers and the military. To a lesser extent, the Strategic Brands segment generates net operating revenues by selling certain ready-to-drink packaged energy drinks to bottlers/distributors.

Generally, the Monster Energy® Drinks segment generates higher per case net operating revenues, but lower per case gross profit margin percentages than the Strategic Brands segment.

The Company’s Alcohol Brands segment primarily generates operating revenues by selling kegged and ready-to-drink canned beers, hard seltzers and FMBs primarily to beer distributors in the United States.

Generally, the Alcohol Brands segment has lower gross profit margin percentages than the Monster Energy® Drinks segment.

Corporate and unallocated amounts that do not relate to a reportable segment have been allocated to “Corporate & Unallocated.” No asset information, other than goodwill and other intangible assets, has been provided in the Company’s reportable segments, as management does not measure or allocate such assets on a segment basis.

The net revenues derived from the Company’s reportable segments and other financial information related thereto for the three- and six-months ended June 30, 2024 and 2023 were as follows:

	Three-Months Ended				Six-Months Ended
	June 30,				June 30,
	2024		2023		2024		2023
Net sales:
Monster Energy® Drinks1	$	1,742,808	$	1,686,887	$	3,471,859	$	3,248,555
Strategic Brands		109,222		99,690		217,666		186,048
Alcohol Brands		41,564		61,076		97,634		107,366
Other		7,003		7,308		12,536		11,922
Corporate and unallocated		—		—		—		—
	$	1,900,597	$	1,854,961	$	3,799,695	$	3,553,891

	Three-Months Ended				Six-Months Ended
	June 30,				June 30,
	2024		2023		2024		2023
Operating Income:
Monster Energy® Drinks1	$	612,255	$	597,922	$	1,240,377	$	1,158,740
Strategic Brands		61,659		55,137		123,677		106,909
Alcohol Brands		(22,561)		(6,577)		(28,577)		(13,460)
Other		1,418		1,651		2,419		1,358
Corporate and unallocated		(125,608)		(124,328)		(268,742)		(244,677)
	$	527,163	$	523,805	$	1,069,154	$	1,008,870

	Three-Months Ended				Six-Months Ended
	June 30,				June 30,
	2024		2023		2024		2023
Income before tax:
Monster Energy® Drinks1	$	613,401	$	598,656	$	1,242,561	$	1,160,330
Strategic Brands		61,672		55,149		123,707		106,938
Alcohol Brands		(22,657)		(6,584)		(28,672)		(13,451)
Other		1,431		1,657		2,447		1,364
Corporate and unallocated		(102,308)		(109,914)		(210,758)		(218,658)
	$	551,539	$	538,964	$	1,129,285	$	1,036,523

(1) Includes $10.0 million for both the three-months ended June 30, 2024 and 2023, related to the recognition of deferred revenue. Includes $19.9 million for both the six-months ended June 30, 2024 and 2023, related to the recognition of deferred revenue.

	Three-Months Ended				Six-Months Ended
	June 30,				June 30,
	2024		2023		2024		2023
Depreciation and amortization:
Monster Energy® Drinks	$	13,105	$	8,817	$	25,713	$	17,806
Strategic Brands		224		196		453		417
Alcohol Brands		3,668		4,106		7,406		8,157
Other		57		51		97		1,174
Corporate and unallocated		2,384		2,406		6,244		4,830
	$	19,438	$	15,576	$	39,913	$	32,384

Corporate and unallocated expenses for the three-months ended June 30, 2024 include $87.5 million of payroll costs, of which $17.8 million was attributable to stock-based compensation expenses (see Note 15 “Stock-Based Compensation”), as well as $14.5 million attributable to professional service expenses, including accounting and legal costs, and $23.6 million of other operating expenses.

Corporate and unallocated expenses for the three-months ended June 30, 2023 include $82.6 million of payroll costs, of which $18.1 million was attributable to stock-based compensation expenses (see Note 15 “Stock-Based Compensation”), as well as $25.3 million attributable to professional service expenses, including accounting and legal costs, and $16.4 million of other operating expenses.

Corporate and unallocated expenses for the six-months ended June 30, 2024 include $186.1 million of payroll costs, of which $39.7 million was attributable to stock-based compensation expenses (see Note 15 “Stock-Based Compensation”), as well as $34.5 million attributable to professional service expenses, including accounting and legal costs, and $48.1 million of other operating expenses.

Corporate and unallocated expenses for the six-months ended June 30, 2023 include $162.9 million of payroll costs, of which $33.8 million was attributable to stock-based compensation expenses (see Note 15 “Stock-Based Compensation”), as well as $47.4 million attributable to professional service expenses, including accounting and legal costs, and $34.4 million of other operating expenses.

Coca-Cola Europacific Partners accounted for approximately 14% of the Company’s net sales for both the three-months ended June 30, 2024 and 2023. Coca-Cola Europacific Partners accounted for approximately 14% and 13% of the Company’s net sales for the six-months ended June 30, 2024 and 2023, respectively.

Coca-Cola Consolidated, Inc. accounted for approximately 11% and 10% of the Company’s net sales for the three-months ended June 30, 2024 and 2023, respectively. Coca-Cola Consolidated, Inc. accounted for approximately 10% of the Company’s net sales for both the six-months ended June 30, 2024 and 2023.

Reyes Holdings, LLC accounted for approximately 10% of the Company’s net sales for both the three-months ended June 30, 2024 and 2023. Reyes Holdings, LLC accounted for approximately 9% and 10% of the Company’s net sales for the six-months ended June 30, 2024 and 2023, respectively.

Net sales to customers outside the United States amounted to $746.0 million and $715.4 million for the three-months ended June 30, 2024 and 2023, respectively. Such sales were approximately 39% of net sales for both the three-months ended June 30, 2024 and 2023. Net sales to customers outside the United States amounted to $1.49 billion and $1.34 billion for the six-months ended June 30, 2024 and 2023, respectively. Such sales were approximately 39% and 38% of net sales for the six-months ended June 30, 2024 and 2023, respectively.

Goodwill and other intangible assets for the Company’s reportable segments were as follows at:

	June 30,		December 31,
	2024		2023
Goodwill and other intangible assets:
Monster Energy® Drinks	$	1,671,799	$	1,663,814
Strategic Brands		982,435		982,471
Alcohol Brands		197,033		198,795
Other		—		—
	$	2,851,267	$	2,845,080

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RELATED PARTY TRANSACTIONS

6 Months Ended

Jun. 30, 2024

RELATED PARTY TRANSACTIONS

RELATED PARTY TRANSACTIONS

19. RELATED PARTY TRANSACTIONS

TCCC controls approximately 20.9% of the voting interests of the Company. The TCCC Subsidiaries, the TCCC Related Parties and certain TCCC independent bottlers, purchase and distribute the Company’s products in domestic and certain international markets. The Company also pays TCCC a commission based on certain sales within the TCCC distribution network.

TCCC commissions, based on sales to the TCCC Subsidiaries and the TCCC Related Parties, were $19.8 million and $18.1 million for the three-months ended June 30, 2024 and 2023, respectively, and are included as a reduction to net sales. TCCC commissions, based on sales to the TCCC Subsidiaries and the TCCC Related Parties, were $42.3 million and $33.8 million for the six-months ended June 30, 2024 and 2023, respectively, and are included as a reduction to net sales.

TCCC commissions, based on sales to TCCC independent bottlers, were $8.7 million and $8.1 million for the three-months ended June 30, 2024 and 2023, respectively, and are included in operating expenses. TCCC commissions, based on sales to TCCC independent bottlers, were $18.4 million and $16.9 million for the six-months ended June 30, 2024 and 2023, respectively, and are included in operating expenses.

Net sales to the TCCC Subsidiaries for the three-months ended June 30, 2024 and 2023 were $55.5 million and $33.2 million, respectively. Net sales to the TCCC Subsidiaries for the six-months ended June 30, 2024 and 2023 were $97.2 million and $68.3 million, respectively.

The Company also purchases concentrates from TCCC which are then sold to certain of the Company’s bottlers/distributors. Concentrate purchases from TCCC were $6.9 million and $8.3 million for the three-months ended June 30, 2024 and 2023, respectively. Concentrate purchases from TCCC were $14.9 million and $14.8 million for the six-months ended June 30, 2024 and 2023, respectively.

Certain TCCC Subsidiaries also contract manufacture certain of the Company’s energy drinks. Such contract manufacturing expenses were $9.6 million and $7.5 million for the three-months ended June 30, 2024 and 2023, respectively. Such contract manufacturing expenses were $18.6 million and $15.0 million for the six-months ended June 30, 2024 and 2023, respectively.

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

	June 30,		December 31,
	2024		2023
Accounts receivable, net	$	110,998	$	135,246
Accounts payable	$	(51,756)	$	(68,386)
Accrued promotional allowances	$	(14,169)	$	(13,794)
Accrued liabilities	$	(20,375)	$	(19,745)

One director of the Company through certain trusts, and a family member of one director are the 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, 2024 and 2023 were $1.7 million and $1.0 million, respectively. Expenses incurred with such company in connection with promotional materials purchased during the six-months ended June 30, 2024 and 2023 were $3.6 million and $2.1 million, respectively.

The Company occasionally charters a private aircraft that is indirectly owned by Mr. Rodney C. Sacks, Co-Chief Executive Officer and Chairman of the Board of Directors. On certain occasions, Mr. Sacks is accompanied by guests and other Company personnel when using such aircraft for business travel. During both the three-months ended June 30, 2024 and 2023, the Company incurred expense of $0.03 million in relation to the aircraft. During both the six-months ended June 30, 2024 and 2023, the Company incurred expense of $0.03 million in relation to the aircraft.

In December 2018, the Company and a director of the Company entered into a 50-50 partnership that purchased land, and real property thereon, in Kona, Hawaii for the purpose of producing coffee products. In October 2023, the partnership made a special, one-time distribution to each of the partners, reflecting the amount of their initial capital contributions. This partnership meets the definition of a Variable Interest Entity (“VIE”) for which the Company has determined that it is the primary beneficiary. Therefore, the Company consolidates the VIE in the accompanying consolidated financial statements. The aggregate carrying values of the VIE’s assets and liabilities, after elimination of any intercompany transactions and balances, as well as the results of operations for all periods presented, are not material to the Company’s condensed consolidated financial statements.

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Insider Trading Arrangements	3 Months Ended
	Jun. 30, 2024
Trading Arrangements, by Individual
Rule 10b5-1 Arrangement Adopted	false
Non-Rule 10b5-1 Arrangement Adopted	false
Rule 10b5-1 Arrangement Terminated	false
Non-Rule 10b5-1 Arrangement Terminated	false
Rule 10b5-1 Arrangement Modified	false
Non-Rule 10b5-1 Arrangement Modified	false

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BASIS OF PRESENTATION (Policies)

6 Months Ended

Jun. 30, 2024

BASIS OF PRESENTATION

Recent Accounting Pronouncements

Recent Accounting Pronouncements

In November 2023, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) No. 2023-07, Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosures. The amendments in this update improve reportable segment disclosure requirements, primarily through enhanced disclosures about significant segment expenses. The amendments in ASU No. 2023-07 are effective for fiscal years beginning after December 15, 2023. Early adoption is permitted. The Company is currently evaluating the impact ASU No. 2023-07 will have on its consolidated financial statements.

In December 2023, the FASB issued ASU No. 2023-09, Income Taxes (Topic 740): Improvements to Income Tax Disclosures. The amendments in this update primarily require more detailed disclosures related to the rate reconciliation and income taxes paid. The amendments in ASU No. 2023-09 are effective for fiscal years beginning after December 15, 2024. Early adoption is permitted. The Company is currently evaluating the impact ASU No. 2023-09 will have on its consolidated financial statements.

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REVENUE RECOGNITION (Tables)

6 Months Ended

Jun. 30, 2024

REVENUE RECOGNITION

Schedule of disaggregation of revenue by geographical markets

	Three-Months Ended June 30, 2024
					Asia Pacific		Latin
	U.S. and				(including		America and
Net Sales	Canada		EMEA1		Oceania)		Caribbean		Total
Monster Energy® Drinks	$	1,100,063	$	351,985	$	132,078	$	158,682	$	1,742,808
Strategic Brands		49,579		41,938		13,010		4,695		109,222
Alcohol Brands		41,564		—		—		—		41,564
Other		7,003		—		—		—		7,003
Total Net Sales	$	1,198,209	$	393,923	$	145,088	$	163,377	$	1,900,597

	Three-Months Ended June 30, 2023
					Asia Pacific		Latin
	U.S. and				(including		America and
Net Sales	Canada		EMEA1		Oceania)		Caribbean		Total
Monster Energy® Drinks	$	1,068,887	$	339,522	$	138,478	$	140,000	$	1,686,887
Strategic Brands		47,226		42,050		7,828		2,586		99,690
Alcohol Brands		61,076		—		—		—		61,076
Other		7,308		—		—		—		7,308
Total Net Sales	$	1,184,497	$	381,572	$	146,306	$	142,586	$	1,854,961

¹Europe, Middle East and Africa (“EMEA”)

	Six-Months Ended June 30, 2024
					Asia Pacific		Latin
	U.S. and				(including		America and
Net Sales	Canada		EMEA1		Oceania)		Caribbean		Total
Monster Energy® Drinks	$	2,194,909	$	704,214	$	254,096	$	318,640	$	3,471,859
Strategic Brands		99,221		85,275		22,207		10,963		217,666
Alcohol Brands		97,634		—		—		—		97,634
Other		12,536		—		—		—		12,536
Total Net Sales	$	2,404,300	$	789,489	$	276,303	$	329,603	$	3,799,695

	Six-Months Ended June 30, 2023
					Asia Pacific		Latin
	U.S. and				(including		America and
Net Sales	Canada		EMEA1		Oceania)		Caribbean		Total
Monster Energy® Drinks	$	2,090,215	$	616,633	$	260,472	$	281,235	$	3,248,555
Strategic Brands		90,269		73,001		16,811		5,967		186,048
Alcohol Brands		107,366		—		—		—		107,366
Other		11,922		—		—		—		11,922
Total Net Sales	$	2,299,772	$	689,634	$	277,283	$	287,202	$	3,553,891

¹Europe, Middle East and Africa (“EMEA”)

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LEASES (Tables)

6 Months Ended

Jun. 30, 2024

LEASES

Schedule of lease cost

	Three-Months Ended June 30,				Six-Months Ended June 30,
	2024		2023		2024		2023
Operating lease cost	$	3,888	$	2,616	$	7,690	$	5,083
Short-term lease cost		2,151		1,070		4,821		2,049
Variable lease cost		228		226		441		441
Finance leases:
Amortization of right-of-use assets		489		202		1,084		325
Interest on lease liabilities		57		44		148		58
Finance lease cost		546		246		1,232		383
Total lease cost	$	6,813	$	4,158	$	14,184	$	7,956

Schedule of supplemental cash flow information related to leases

	Six-Months Ended June 30,
	2024		2023
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash outflows from operating leases	$	7,355	$	4,818
Operating cash outflows from finance leases		148		58
Financing cash outflows from finance leases		5,267		1,683
Right-of-use assets obtained in exchange for lease obligations:
Finance leases		987		5,115
Operating leases		3,704		1,847

Schedule of ROU assets for operating and finance leases

		June 30,		December 31,
	Balance Sheet Location	2024		2023
Operating leases:
Right-of-use assets	Other assets	$	55,731	$	58,845
Current lease liabilities	Accrued liabilities	$	11,105	$	11,088
Noncurrent lease liabilities	Other liabilities		45,862		48,459
Total operating lease liabilities		$	56,967	$	59,547
Finance leases:
Right-of-use assets	Property and equipment, net	$	7,722	$	11,147
Current lease liabilities	Accrued liabilities	$	2,167	$	6,449
Noncurrent lease liabilities	Other liabilities		10		19
Total finance lease liabilities		$	2,177	$	6,468

Schedule of weighted-average remaining lease terms and weighted-average discount rates

	June 30,		December 31,
	2024		2023
Weighted-average remaining lease term in years:
Operating leases	6.0		6.3
Finance leases	0.4		0.7
Weighted-average discount rate:
Operating leases	4.7	%	4.7	%
Finance leases	6.3	%	6.3	%

Schedule of outlines maturities of the Company's lease liabilities

	Undiscounted Future Lease Payments
	Operating Leases		Finance Leases
2024 (from July 1, 2024 to December 31, 2024)	$	6,779	$	2,000
2025		12,617		211
2026		10,356		2
2027		9,633		—
2028		8,089		—
2029 and thereafter		18,295		—
Total lease payments		65,769		2,213
Less imputed interest		(8,802)		(36)
Total	$	56,967	$	2,177

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INVESTMENTS (Tables)

6 Months Ended

Jun. 30, 2024

INVESTMENTS.

Summary of investments in available-for-sale

									Continuous		Continuous
			Gross		Gross				Unrealized		Unrealized
			Unrealized		Unrealized				Loss Position		Loss Position
	Amortized		Holding		Holding		Fair		less than		greater than
December 31, 2023	Cost		Gains		Losses		Value		12 Months		12 Months
Available-for-sale
Short-term:
Commercial paper	$	163,775	$	—	$	1	$	163,774	$	1	$	—
Certificates of deposit		15,590		—		—		15,590		—		—
Municipal securities		361		—		—		361		—		—
U.S. government agency securities		116,524		90		66		116,548		66		—
U.S. treasuries		412,936		205		1,084		412,057		1,084		—
Corporate bonds		247,340		89		154		247,275		154		—
Long-term:
U.S. government agency securities		23,485		51		5		23,531		5		—
U.S. treasuries		35,896		79		8		35,967		8		—
Corporate bonds		16,903		32		2		16,933		2		—
Total	$	1,032,810	$	546	$	1,320	$	1,032,036	$	1,320	$	—

Summary of the underlying contractual maturities of investments

	December 31, 2023
	Amortized Cost		Fair Value
Less than 1 year:
Commercial paper	$	163,775	$	163,774
Municipal securities		361		361
U.S. government agency securities		116,524		116,548
Certificates of deposit		15,590		15,590
U.S. treasuries		412,936		412,057
Corporate bonds		247,340		247,275
Due 1 - 10 years:
U.S. treasuries		35,896		35,967
U.S. government agency securities		23,485		23,531
Corporate bonds		16,903		16,933
Total	$	1,032,810	$	1,032,036

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FAIR VALUE OF CERTAIN FINANCIAL ASSETS AND LIABILITIES (Tables)

6 Months Ended

Jun. 30, 2024

FAIR VALUE OF CERTAIN FINANCIAL ASSETS AND LIABILITIES

Schedule of financial assets and liabilities recorded at fair value on a recurring basis

June 30, 2024	Level 1		Level 2		Level 3		Total
Cash	$	948,105	$	—	$	—	$	948,105
Money market funds		576,964		—		—		576,964
Certificates of deposit		—		39,665		—		39,665
Foreign currency derivatives		—		(214)		—		(214)
Commodity derivatives		—		5,600		—		5,600
Total	$	1,525,069	$	45,051	$	—	$	1,570,120
Amounts included in:
Cash and cash equivalents	$	1,525,069	$	39,665	$	—	$	1,564,734
Accounts receivable, net		—		8,660		—		8,660
Accrued liabilities		—		(2,915)		—		(2,915)
Other liabilities		—		(359)		—		(359)
Total	$	1,525,069	$	45,051	$	—	$	1,570,120

December 31, 2023	Level 1		Level 2		Level 3		Total
Cash	$	1,105,701	$	—	$	—	$	1,105,701
Money market funds		960,873		—		—		960,873
Certificates of deposit		—		33,824		—		33,824
Commercial paper		—		163,774		—		163,774
Corporate bonds		—		264,208		—		264,208
Municipal securities		—		361		—		361
U.S. government agency securities		—		159,585		—		159,585
U.S. treasuries		—		641,385		—		641,385
Foreign currency derivatives		—		(1,083)		—		(1,083)
Commodity derivatives		—		4,410		—		4,410
Total	$	2,066,574	$	1,266,464	$	—	$	3,333,038
Amounts included in:
Cash and cash equivalents	$	2,066,574	$	231,101	$	—	$	2,297,675
Short-term investments		—		955,605		—		955,605
Accounts receivable, net		—		4,618		—		4,618
Other assets		—		316		—		316
Investments		—		76,431		—		76,431
Accrued liabilities		—		(1,607)		—		(1,607)
Total	$	2,066,574	$	1,266,464	$	—	$	3,333,038

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DERIVATIVE INSTRUMENTS AND HEDGING ACTIVITIES (Tables)

6 Months Ended

Jun. 30, 2024

DERIVATIVE INSTRUMENTS AND HEDGING ACTIVITIES

Schedule of fair value of derivative instruments

	Fair value
Derivatives designated as	June 30,		December 31,
hedging instruments	2024		2023		Balance Sheet location
Assets:
Commodity contracts	$	7,450	$	4,480	Accounts receivable, net
Commodity contracts	$	—	$	316	Other assets
Liabilities:
Commodity contracts	$	(1,491)	$	(386)	Accrued liabilities
Commodity contracts	$	(359)	$	—	Other liabilities

	Fair value
Derivatives not designated as	June 30,		December 31,
hedging instruments	2024		2023		Balance Sheet location
Assets:
Foreign currency exchange contracts	$	1,210	$	138	Accounts receivable, net
Liabilities:
Foreign currency exchange contracts	$	(1,424)	$	(1,221)	Accrued liabilities

Schedule of changes in the fair values of derivatives designated as cash flow hedges had on other comprehensive income ("OCI"), AOCI and earnings

Three-Months Ended June 30, 2024
				Gain (loss)
Derivatives designated as	Gain (loss)		Location of gain (loss)	reclassified from
hedging instruments	recognized in AOCI		recognized in income	AOCI into income
Commodity contracts	$	6,205	Cost of sales	$	—

Three-Months Ended June 30, 2023
				Gain (loss)
Derivatives designated as		Gain (loss) recognized	Location of gain (loss)	reclassified from
hedging instruments	in AOCI		recognized in income	AOCI into income
Commodity contracts	$	(1,266)	Cost of sales	$	—

Six-Months Ended June 30, 2024
				Gain (loss)
Derivatives designated as	Gain (loss)		Location of gain (loss)	reclassified from
hedging instruments	recognized in AOCI		recognized in income	AOCI into income
Commodity contracts	$	8,483	Cost of sales	$	(966)

Six-Months Ended June 30, 2023
				Gain (loss)
Derivatives designated as	Gain (loss)		Location of gain (loss)	reclassified from
hedging instruments	recognized in AOCI		recognized in income	AOCI into income
Commodity contracts	$	(1,266)	Cost of sales	$	—

Schedule of net gains (losses) on derivative instruments in the consolidated statements of income

		Gain (loss) recognized
		in income on derivatives
		Three-Months Ended
Derivatives not designated as	Location of gain (loss)	June 30,		June 30,
hedging instruments	recognized in income on derivatives	2024		2023
Foreign currency exchange contracts	Interest and other income, net	$	(2,633)	$	(1,924)

		Gain (loss) recognized
		in income on derivatives
		Six-Months Ended
Derivatives not designated as	Location of gain (loss)	June 30,		June 30,
hedging instruments	recognized in income on derivatives	2024		2023
Foreign currency exchange contracts	Interest and other income, net	$	2,711	$	(9,775)

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INVENTORIES (Tables)

6 Months Ended

Jun. 30, 2024

INVENTORIES

Schedule of inventories

	June 30,		December 31,
	2024		2023
Raw materials	$	271,341	$	330,021
Work in process		1,526		1,403
Finished goods		561,537		639,982
	$	834,404	$	971,406

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PROPERTY AND EQUIPMENT, NET (Tables)

6 Months Ended

Jun. 30, 2024

PROPERTY AND EQUIPMENT, NET

Schedule of property and equipment

	June 30,		December 31,
	2024		2023
Land	$	158,505	$	152,253
Leasehold improvements		33,264		37,946
Furniture and fixtures		11,390		11,422
Office and computer equipment		26,833		25,560
Computer software		6,636		5,344
Equipment		462,428		426,466
Buildings		217,214		211,951
Vehicles		69,902		69,527
Assets under construction		261,279		211,562
		1,247,451		1,152,031
Less: accumulated depreciation and amortization		(286,489)		(261,235)
	$	960,962	$	890,796

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GOODWILL AND OTHER INTANGIBLE ASSETS (Tables)

6 Months Ended

Jun. 30, 2024

GOODWILL AND OTHER INTANGIBLE ASSETS

Schedule of goodwill

	Monster
	Energy®		Strategic		Alcohol
	Drinks		Brands		Brands		Other		Total
Balance at December 31, 2023	$	693,644	$	637,999	$	86,298	$	—	$	1,417,941
Acquisitions		—		—		—		—		—
Balance at June 30, 2024	$	693,644	$	637,999	$	86,298	$	—	$	1,417,941

	Monster
	Energy®		Strategic		Alcohol
	Drinks		Brands		Brands		Other		Total
Balance at December 31, 2022	$	693,644	$	637,999	$	86,298	$	—	$	1,417,941
Acquisitions		—		—		—		—		—
Balance at June 30, 2023	$	693,644	$	637,999	$	86,298	$	—	$	1,417,941

Schedule of intangible assets

	June 30,		December 31,
	2024		2023
Amortizing intangibles	$	144,577	$	144,582
Accumulated amortization		(77,668)		(74,699)
		66,909		69,883
Non-amortizing intangibles		1,366,417		1,357,256
	$	1,433,326	$	1,427,139

Schedule of future estimated amortization expense related to amortizing intangibles

2024 (from July 1, 2024 to December 31, 2024)	$	4,461
2025		5,947
2026		5,947
2027		5,946
2028		5,945
2029 and thereafter		38,663
	$	66,909

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DEBT (Tables)

6 Months Ended

Jun. 30, 2024

DEBT

Schedule of long-term debt

	June 30,		December 31,
	2024		2023
Term loan	$	750,000	$	—
Revolving credit facility		—		—
Total debt		750,000		—
Less: unamortized debt issuance costs		(1,260)		—
Total debt, net of unamortized debt issuance costs		748,740		—
Less: current portion of long-term debt		—		—
Long-term debt	$	748,740	$	—

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ACCUMULATED OTHER COMPREHENSIVE LOSS (Tables)

6 Months Ended

Jun. 30, 2024

ACCUMULATED OTHER COMPREHENSIVE LOSS

Schedule of components of accumulated other comprehensive loss

	Accumulated				Unrealized
	Net Gains		Currency		Gains (Losses)
	(Losses) on		Translation		on Available-
	Commodity		Gains		for-Sale
	Derivatives		(Losses)		Securities		Total
Balance at December 31, 2023	$	4,410	$	(128,989)	$	(758)	$	(125,337)
Other comprehensive income (loss) before reclassifications		4,074		(61,799)		758		(56,967)
Net current-period other comprehensive income (loss)		4,074		(61,799)		758		(56,967)
Balance at June 30, 2024	$	8,484	$	(190,788)	$	—	$	(182,304)

	Accumulated				Unrealized
	Net Gains		Currency		Gains (Losses)
	(Losses) on		Translation		on Available-
	Commodity		Gains		for-Sale
	Derivatives		(Losses)		Securities		Total
Balance at December 31, 2022	$	—	$	(153,230)	$	(5,843)	$	(159,073)
Other comprehensive income (loss) before reclassifications		(1,266)		2,206		2,408		3,348
Net current-period other comprehensive income (loss)		(1,266)		2,206		2,408		3,348
Balance at June 30, 2023	$	(1,266)	$	(151,024)	$	(3,435)	$	(155,725)

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STOCK-BASED COMPENSATION (Tables)

6 Months Ended

Jun. 30, 2024

STOCK-BASED COMPENSATION

Schedule of weighted-average assumptions used to estimate the fair value of options granted

	Three-Months Ended June 30,				Six-Months Ended June 30,
	2024		2023		2024		2023
Dividend yield	0.0	%	0.0	%	0.0	%	0.0	%
Expected volatility	27.5	%	27.4	%	27.5	%	27.6	%
Risk-free interest rate	4.4	%	3.7	%	4.3	%	3.7	%
Expected term	6.4	years	6.3	years	6.4	years	6.3	years

Schedule of activities with respect to its stock option plans

				Weighted-
				Average
		Weighted-		Remaining
	Number of	Average		Contractual
	Shares	Exercise Price		Term	Aggregate
Options	(in thousands)	Per Share		(in years)	Intrinsic Value
Outstanding at January 1, 2024	24,983	$	33.64	5.8	$	598,866
Granted 01/01/24 - 03/31/24	4,332	$	60.29
Granted 04/01/24 - 06/30/24	62	$	51.89
Exercised	(1,914)	$	27.22
Cancelled or forfeited	(165)	$	48.17
Outstanding at June 30, 2024	27,298	$	38.27	6.1	$	366,872
Vested and expected to vest in the future at June 30, 2024	26,202	$	37.70	6.0	$	363,597
Exercisable at June 30, 2024	15,087	$	29.21	4.1	$	313,348

Schedule of activities with respect to non-vested restricted stock units and performance share units

	Number of Shares	Weighted Average Grant-
	(in thousands)	Date Fair Value
Non-vested at January 1, 2024	1,964	$	40.95
Granted 01/01/24 - 03/31/241	502	$	57.04
Granted 04/01/24 - 06/30/24	27	$	49.12
Vested	(824)	$	40.69
Forfeited/cancelled	(1)	$	30.62
Non-vested at June 30, 2024	1,668	$	46.06

¹The grant activity for performance share units is recorded based on the target performance level earning 100% of target performance share units. The actual number of performance share units earned could range from 0% to 200% of target depending on the achievement of pre-established performance goals.

XML

INCOME TAXES (Tables)

6 Months Ended

Jun. 30, 2024

INCOME TAXES

Schedule of roll-forward of the total gross unrecognized tax benefits, not including interest and penalties

	Gross Unrecognized
	Tax Benefits
Balance at December 31, 2023	$	3,109
Additions for tax positions related to the current year		—
Additions for tax positions related to the prior years		—
Decreases for tax positions related to the prior years		—
Balance at June 30, 2024	$	3,109

XML

EARNINGS PER SHARE (Tables)

6 Months Ended

Jun. 30, 2024

EARNINGS PER SHARE

Schedule of reconciliation of the weighted average shares used in the basic and diluted earnings per common share

A reconciliation of the weighted-average shares used in the basic and diluted earnings per common share computations is presented below (in thousands):

	Three-Months Ended		Six-Months Ended
	June 30,		June 30,
	2024	2023	2024	2023
Weighted-average shares outstanding:
Basic	1,029,268	1,047,065	1,035,175	1,045,993
Dilutive	8,110	13,028	9,188	13,674
Diluted	1,037,378	1,060,093	1,044,363	1,059,667

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SEGMENT INFORMATION (Tables)

6 Months Ended

Jun. 30, 2024

SEGMENT INFORMATION

Schedule of net revenues and other financial information by segment

	Three-Months Ended				Six-Months Ended
	June 30,				June 30,
	2024		2023		2024		2023
Net sales:
Monster Energy® Drinks1	$	1,742,808	$	1,686,887	$	3,471,859	$	3,248,555
Strategic Brands		109,222		99,690		217,666		186,048
Alcohol Brands		41,564		61,076		97,634		107,366
Other		7,003		7,308		12,536		11,922
Corporate and unallocated		—		—		—		—
	$	1,900,597	$	1,854,961	$	3,799,695	$	3,553,891

	Three-Months Ended				Six-Months Ended
	June 30,				June 30,
	2024		2023		2024		2023
Operating Income:
Monster Energy® Drinks1	$	612,255	$	597,922	$	1,240,377	$	1,158,740
Strategic Brands		61,659		55,137		123,677		106,909
Alcohol Brands		(22,561)		(6,577)		(28,577)		(13,460)
Other		1,418		1,651		2,419		1,358
Corporate and unallocated		(125,608)		(124,328)		(268,742)		(244,677)
	$	527,163	$	523,805	$	1,069,154	$	1,008,870

	Three-Months Ended				Six-Months Ended
	June 30,				June 30,
	2024		2023		2024		2023
Income before tax:
Monster Energy® Drinks1	$	613,401	$	598,656	$	1,242,561	$	1,160,330
Strategic Brands		61,672		55,149		123,707		106,938
Alcohol Brands		(22,657)		(6,584)		(28,672)		(13,451)
Other		1,431		1,657		2,447		1,364
Corporate and unallocated		(102,308)		(109,914)		(210,758)		(218,658)
	$	551,539	$	538,964	$	1,129,285	$	1,036,523

(1) Includes $10.0 million for both the three-months ended June 30, 2024 and 2023, related to the recognition of deferred revenue. Includes $19.9 million for both the six-months ended June 30, 2024 and 2023, related to the recognition of deferred revenue.

	Three-Months Ended				Six-Months Ended
	June 30,				June 30,
	2024		2023		2024		2023
Depreciation and amortization:
Monster Energy® Drinks	$	13,105	$	8,817	$	25,713	$	17,806
Strategic Brands		224		196		453		417
Alcohol Brands		3,668		4,106		7,406		8,157
Other		57		51		97		1,174
Corporate and unallocated		2,384		2,406		6,244		4,830
	$	19,438	$	15,576	$	39,913	$	32,384

Schedule of goodwill and other intangible assets for the reportable segments

	June 30,		December 31,
	2024		2023
Goodwill and other intangible assets:
Monster Energy® Drinks	$	1,671,799	$	1,663,814
Strategic Brands		982,435		982,471
Alcohol Brands		197,033		198,795
Other		—		—
	$	2,851,267	$	2,845,080

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RELATED PARTY TRANSACTIONS (Tables)

6 Months Ended

Jun. 30, 2024

RELATED PARTY TRANSACTIONS

Schedule of related party transactions

	June 30,		December 31,
	2024		2023
Accounts receivable, net	$	110,998	$	135,246
Accounts payable	$	(51,756)	$	(68,386)
Accrued promotional allowances	$	(14,169)	$	(13,794)
Accrued liabilities	$	(20,375)	$	(19,745)

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REVENUE RECOGNITION - (Details)	6 Months Ended
	Jun. 30, 2024 segment
REVENUE RECOGNITION
Number of operating segments	4
Number of reportable segments	4
Distribution agreement, revenue recognition period	20 years

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REVENUE RECOGNITION - Disaggregation of Revenue (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2024	Jun. 30, 2023	Jun. 30, 2024	Jun. 30, 2023
REVENUE RECOGNITION
Total net sales	$ 1,900,597	$ 1,854,961	$ 3,799,695	$ 3,553,891
U.S. and Canada
REVENUE RECOGNITION
Total net sales	1,198,209	1,184,497	2,404,300	2,299,772
EMEA
REVENUE RECOGNITION
Total net sales	393,923	381,572	789,489	689,634
Asia Pacific (including Oceania)
REVENUE RECOGNITION
Total net sales	145,088	146,306	276,303	277,283
Latin America and Caribbean
REVENUE RECOGNITION
Total net sales	163,377	142,586	329,603	287,202
Monster Energy Drinks
REVENUE RECOGNITION
Total net sales	1,742,808	1,686,887	3,471,859	3,248,555
Monster Energy Drinks | U.S. and Canada
REVENUE RECOGNITION
Total net sales	1,100,063	1,068,887	2,194,909	2,090,215
Monster Energy Drinks | EMEA
REVENUE RECOGNITION
Total net sales	351,985	339,522	704,214	616,633
Monster Energy Drinks | Asia Pacific (including Oceania)
REVENUE RECOGNITION
Total net sales	132,078	138,478	254,096	260,472
Monster Energy Drinks | Latin America and Caribbean
REVENUE RECOGNITION
Total net sales	158,682	140,000	318,640	281,235
Strategic Brands
REVENUE RECOGNITION
Total net sales	109,222	99,690	217,666	186,048
Strategic Brands | U.S. and Canada
REVENUE RECOGNITION
Total net sales	49,579	47,226	99,221	90,269
Strategic Brands | EMEA
REVENUE RECOGNITION
Total net sales	41,938	42,050	85,275	73,001
Strategic Brands | Asia Pacific (including Oceania)
REVENUE RECOGNITION
Total net sales	13,010	7,828	22,207	16,811
Strategic Brands | Latin America and Caribbean
REVENUE RECOGNITION
Total net sales	4,695	2,586	10,963	5,967
Alcohol Brands
REVENUE RECOGNITION
Total net sales	41,564	61,076	97,634	107,366
Alcohol Brands | U.S. and Canada
REVENUE RECOGNITION
Total net sales	41,564	61,076	97,634	107,366
Alcohol Brands | EMEA
REVENUE RECOGNITION
Total net sales	0	0	0	0
Alcohol Brands | Asia Pacific (including Oceania)
REVENUE RECOGNITION
Total net sales	0	0	0	0
Alcohol Brands | Latin America and Caribbean
REVENUE RECOGNITION
Total net sales	0	0	0	0
Other
REVENUE RECOGNITION
Total net sales	7,003	7,308	12,536	11,922
Other | U.S. and Canada
REVENUE RECOGNITION
Total net sales	7,003	7,308	12,536	11,922
Other | EMEA
REVENUE RECOGNITION
Total net sales	0	0	0	0
Other | Asia Pacific (including Oceania)
REVENUE RECOGNITION
Total net sales	0	0	0	0
Other | Latin America and Caribbean
REVENUE RECOGNITION
Total net sales	$ 0	$ 0	$ 0	$ 0

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REVENUE RECOGNITION - Contract Liabilities (Details) - USD ($) $ in Millions	3 Months Ended		6 Months Ended
	Jun. 30, 2024	Jun. 30, 2023	Jun. 30, 2024	Jun. 30, 2023	Dec. 31, 2023
Contract Liabilities
Deferred revenue	$ 236.7		$ 236.7		$ 246.2
Deferred revenue recognized in net sales	$ 10.0	$ 10.0	$ 19.9	$ 19.9

XML

LEASES - Lease Terms (Details)	6 Months Ended
	Jun. 30, 2024
LEASES
Operating leases, options to extend	true
Finance leases, options to extend	true
Operating leases, options to terminate	true
Finance leases, options to terminate	true
Minimum
LEASES
Operating leases, lease term (in years)	1 year
Finance leases, lease term (in years)	1 year
Maximum
LEASES
Operating leases, lease term (in years)	10 years
Finance leases, lease term (in years)	11 years
Operating leases, renewal lease term (in years)	5 years
Finance leases, renewal lease term (in years)	5 years
Operating leases, termination period (in years)	1 year
Finance leases, termination period (in years)	1 year

XML

LEASES - Lease Cost (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2024	Jun. 30, 2023	Jun. 30, 2024	Jun. 30, 2023
LEASES
Operating lease cost	$ 3,888	$ 2,616	$ 7,690	$ 5,083
Short-term lease cost	2,151	1,070	4,821	2,049
Variable lease cost	228	226	441	441
Finance leases:
Amortization of right-of-use assets	489	202	1,084	325
Interest on lease liabilities	57	44	148	58
Finance lease cost	546	246	1,232	383
Total lease cost	$ 6,813	$ 4,158	$ 14,184	$ 7,956

XML

LEASES - Supplemental cash flow information (Details) - USD ($) $ in Thousands	6 Months Ended
	Jun. 30, 2024	Jun. 30, 2023
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash outflows from operating leases	$ 7,355	$ 4,818
Operating cash outflows from finance leases	148	58
Financing cash outflows from finance leases	5,267	1,683
Right-of-use assets obtained in exchange for lease obligations:
Finance leases	987	5,115
Operating leases	$ 3,704	$ 1,847

XML

LEASES - Supplemental balance sheet information (Details) - USD ($) $ in Thousands	Jun. 30, 2024	Dec. 31, 2023
LEASES
Right-of-use assets	$ 55,731	$ 58,845
Operating Lease, Right-of-Use Asset, Statement of Financial Position [Extensible Enumeration]	Other Assets, Noncurrent	Other Assets, Noncurrent
Current lease liabilities	$ 11,105	$ 11,088
Operating Lease, Liability, Current, Statement of Financial Position [Extensible Enumeration]	Accrued Liabilities, Current	Accrued Liabilities, Current
Noncurrent lease liabilities	$ 45,862	$ 48,459
Operating Lease, Liability, Noncurrent, Statement of Financial Position [Extensible Enumeration]	Other Liabilities, Noncurrent	Other Liabilities, Noncurrent
Total operating lease liabilities	$ 56,967	$ 59,547
Finance Lease:
Right-of-use assets	$ 7,722	$ 11,147
Finance Lease, Right-of-Use Asset, Statement of Financial Position [Extensible Enumeration]	Property, Plant and Equipment, Net	Property, Plant and Equipment, Net
Current lease liabilities	$ 2,167	$ 6,449
Finance Lease, Liability, Current, Statement of Financial Position [Extensible Enumeration]	Accrued Liabilities, Current	Accrued Liabilities, Current
Noncurrent lease liabilities	$ 10	$ 19
Finance Lease, Liability, Noncurrent, Statement of Financial Position [Extensible Enumeration]	Other Liabilities, Noncurrent	Other Liabilities, Noncurrent
Total finance lease liabilities	$ 2,177	$ 6,468

XML

LEASES - Weighted-average remaining lease term and weighted-average discount rate (Details)	Jun. 30, 2024	Dec. 31, 2023
LEASES
Weighted-average remaining lease term (years), Operating leases	6 years	6 years 3 months 18 days
Weighted-average remaining lease term (years), Finance leases	4 months 24 days	8 months 12 days
Weighted-average discount rate, Operating leases	4.70%	4.70%
Weighted-average discount rate, Finance leases	6.30%	6.30%

XML

LEASES - Undiscounted future lease payments for operating and finance leases (Details) - USD ($) $ in Thousands	Jun. 30, 2024	Dec. 31, 2023
Operating Leases
2024 (from July 1, 2024 to December 31, 2024)	$ 6,779
2025	12,617
2026	10,356
2027	9,633
2028	8,089
2029 and thereafter	18,295
Total lease payments	65,769
Less imputed interest	(8,802)
Total operating lease liabilities	56,967	$ 59,547
Finance Leases
2024 (from July 1, 2024 to December 31, 2024)	2,000
2025	211
2026	2
2028	0
2029 and thereafter	0
Total lease payments	2,213
Less imputed interest	(36)
Total finance lease liabilities	$ 2,177	$ 6,468

XML

INVESTMENTS (Details) - USD ($) $ in Thousands	Jun. 30, 2024	Dec. 31, 2023
INVESTMENTS
Short-term investments	$ 0	$ 955,605
Investments	$ 0	76,431
Available-for-sale
Amortized Cost		1,032,810
Gross Unrealized Holding Gains		546
Gross Unrealized Holding Losses		1,320
Fair Value		1,032,036
Continuous Unrealized Loss Position less than 12 Months		1,320
Continuous Unrealized Loss Position greater than 12 Months		0
Short-term | Commercial paper
Available-for-sale
Amortized Cost		163,775
Gross Unrealized Holding Gains		0
Gross Unrealized Holding Losses		1
Fair Value		163,774
Continuous Unrealized Loss Position less than 12 Months		1
Continuous Unrealized Loss Position greater than 12 Months		0
Short-term | Certificates of deposit
Available-for-sale
Amortized Cost		15,590
Gross Unrealized Holding Gains		0
Gross Unrealized Holding Losses		0
Fair Value		15,590
Continuous Unrealized Loss Position less than 12 Months		0
Continuous Unrealized Loss Position greater than 12 Months		0
Short-term | Municipal securities
Available-for-sale
Amortized Cost		361
Gross Unrealized Holding Gains		0
Gross Unrealized Holding Losses		0
Fair Value		361
Continuous Unrealized Loss Position less than 12 Months		0
Continuous Unrealized Loss Position greater than 12 Months		0
Short-term | U.S. government agency securities
Available-for-sale
Amortized Cost		116,524
Gross Unrealized Holding Gains		90
Gross Unrealized Holding Losses		66
Fair Value		116,548
Continuous Unrealized Loss Position less than 12 Months		66
Continuous Unrealized Loss Position greater than 12 Months		0
Short-term | U.S. treasuries
Available-for-sale
Amortized Cost		412,936
Gross Unrealized Holding Gains		205
Gross Unrealized Holding Losses		1,084
Fair Value		412,057
Continuous Unrealized Loss Position less than 12 Months		1,084
Continuous Unrealized Loss Position greater than 12 Months		0
Short-term | Corporate bonds
Available-for-sale
Amortized Cost		247,340
Gross Unrealized Holding Gains		89
Gross Unrealized Holding Losses		154
Fair Value		247,275
Continuous Unrealized Loss Position less than 12 Months		154
Continuous Unrealized Loss Position greater than 12 Months		0
Long-term | U.S. government agency securities
Available-for-sale
Amortized Cost		23,485
Gross Unrealized Holding Gains		51
Gross Unrealized Holding Losses		5
Fair Value		23,531
Continuous Unrealized Loss Position less than 12 Months		5
Continuous Unrealized Loss Position greater than 12 Months		0
Long-term | U.S. treasuries
Available-for-sale
Amortized Cost		35,896
Gross Unrealized Holding Gains		79
Gross Unrealized Holding Losses		8
Fair Value		35,967
Continuous Unrealized Loss Position less than 12 Months		8
Continuous Unrealized Loss Position greater than 12 Months		0
Long-term | Corporate bonds
Available-for-sale
Amortized Cost		16,903
Gross Unrealized Holding Gains		32
Gross Unrealized Holding Losses		2
Fair Value		16,933
Continuous Unrealized Loss Position less than 12 Months		2
Continuous Unrealized Loss Position greater than 12 Months		$ 0

XML

INVESTMENTS - Maturity Period (Details) $ in Thousands	Dec. 31, 2023 USD ($)
INVESTMENTS
Amortized Cost	$ 1,032,810
Fair Value	1,032,036
Commercial paper | Less than 1 year
INVESTMENTS
Amortized Cost	163,775
Fair Value	163,774
Municipal securities | Less than 1 year
INVESTMENTS
Amortized Cost	361
Fair Value	361
U.S. government agency securities | Less than 1 year
INVESTMENTS
Amortized Cost	116,524
Fair Value	116,548
U.S. government agency securities | Due 1 - 10 years
INVESTMENTS
Amortized Cost	23,485
Fair Value	23,531
Certificates of deposit | Less than 1 year
INVESTMENTS
Amortized Cost	15,590
Fair Value	15,590
U.S. treasuries | Less than 1 year
INVESTMENTS
Amortized Cost	412,936
Fair Value	412,057
U.S. treasuries | Due 1 - 10 years
INVESTMENTS
Amortized Cost	35,896
Fair Value	35,967
Corporate bonds | Less than 1 year
INVESTMENTS
Amortized Cost	247,340
Fair Value	247,275
Corporate bonds | Due 1 - 10 years
INVESTMENTS
Amortized Cost	16,903
Fair Value	$ 16,933

XML

FAIR VALUE OF CERTAIN FINANCIAL ASSETS AND LIABILITIES (Details) - USD ($)	Jun. 30, 2024	Dec. 31, 2023
FAIR VALUE OF CERTAIN FINANCIAL ASSETS AND LIABILITIES
Cash and cash equivalents	$ 1,564,734,000	$ 2,297,675,000
Short-term investments	0	955,605,000
Investments	0	76,431,000
Investments	0
Asset transfers from Level 1 to Level 2 measurements	0	0
Asset transfers from Level 2 to Level 1 measurements	0	0
Liabilities transfers from Level 1 to Level 2 measurements	0	0
Liabilities transfers from Level 2 to Level 1 measurements	0	0
Total fair value
FAIR VALUE OF CERTAIN FINANCIAL ASSETS AND LIABILITIES
Cash	948,105,000	1,105,701,000
Assets measured at fair value	1,570,120,000	3,333,038,000
Fair value liabilities	(214,000)	(1,083,000)
Cash and cash equivalents	1,564,734,000	2,297,675,000
Short-term investments		955,605,000
Accounts receivable, net	8,660,000	4,618,000
Other assets		316,000
Investments		76,431,000
Accrued liabilities	(2,915,000)	(1,607,000)
Other liabilities	(359,000)
Total fair value | Money market funds
FAIR VALUE OF CERTAIN FINANCIAL ASSETS AND LIABILITIES
Assets measured at fair value	576,964,000	960,873,000
Total fair value | Certificates of deposit
FAIR VALUE OF CERTAIN FINANCIAL ASSETS AND LIABILITIES
Assets measured at fair value	39,665,000	33,824,000
Total fair value | Commercial paper
FAIR VALUE OF CERTAIN FINANCIAL ASSETS AND LIABILITIES
Assets measured at fair value		163,774,000
Total fair value | Corporate bonds
FAIR VALUE OF CERTAIN FINANCIAL ASSETS AND LIABILITIES
Assets measured at fair value		264,208,000
Total fair value | Municipal securities
FAIR VALUE OF CERTAIN FINANCIAL ASSETS AND LIABILITIES
Assets measured at fair value		361,000
Total fair value | U.S. government agency securities
FAIR VALUE OF CERTAIN FINANCIAL ASSETS AND LIABILITIES
Assets measured at fair value		159,585,000
Total fair value | U.S. treasuries
FAIR VALUE OF CERTAIN FINANCIAL ASSETS AND LIABILITIES
Assets measured at fair value		641,385,000
Total fair value | Commodity derivatives
FAIR VALUE OF CERTAIN FINANCIAL ASSETS AND LIABILITIES
Fair value liabilities	5,600,000	4,410,000
Level 1
FAIR VALUE OF CERTAIN FINANCIAL ASSETS AND LIABILITIES
Cash	948,105,000	1,105,701,000
Assets measured at fair value	1,525,069,000	2,066,574,000
Fair value liabilities	0	0
Cash and cash equivalents	1,525,069,000	2,066,574,000
Short-term investments		0
Accounts receivable, net	0	0
Investments		0
Accrued liabilities	0	0
Other liabilities	0
Level 1 | Money market funds
FAIR VALUE OF CERTAIN FINANCIAL ASSETS AND LIABILITIES
Assets measured at fair value	576,964,000	960,873,000
Level 1 | Certificates of deposit
FAIR VALUE OF CERTAIN FINANCIAL ASSETS AND LIABILITIES
Assets measured at fair value	0	0
Level 1 | Commercial paper
FAIR VALUE OF CERTAIN FINANCIAL ASSETS AND LIABILITIES
Assets measured at fair value		0
Level 1 | Corporate bonds
FAIR VALUE OF CERTAIN FINANCIAL ASSETS AND LIABILITIES
Assets measured at fair value		0
Level 1 | Municipal securities
FAIR VALUE OF CERTAIN FINANCIAL ASSETS AND LIABILITIES
Assets measured at fair value		0
Level 1 | U.S. government agency securities
FAIR VALUE OF CERTAIN FINANCIAL ASSETS AND LIABILITIES
Assets measured at fair value		0
Level 1 | U.S. treasuries
FAIR VALUE OF CERTAIN FINANCIAL ASSETS AND LIABILITIES
Assets measured at fair value		0
Level 2
FAIR VALUE OF CERTAIN FINANCIAL ASSETS AND LIABILITIES
Cash	0	0
Assets measured at fair value	45,051,000	1,266,464,000
Fair value liabilities	(214,000)	(1,083,000)
Cash and cash equivalents	39,665,000	231,101,000
Short-term investments		955,605,000
Accounts receivable, net	8,660,000	4,618,000
Other assets		316,000
Investments		76,431,000
Accrued liabilities	(2,915,000)	(1,607,000)
Other liabilities	(359,000)
Level 2 | Money market funds
FAIR VALUE OF CERTAIN FINANCIAL ASSETS AND LIABILITIES
Assets measured at fair value	0	0
Level 2 | Certificates of deposit
FAIR VALUE OF CERTAIN FINANCIAL ASSETS AND LIABILITIES
Assets measured at fair value	39,665,000	33,824,000
Level 2 | Commercial paper
FAIR VALUE OF CERTAIN FINANCIAL ASSETS AND LIABILITIES
Assets measured at fair value		163,774,000
Level 2 | Corporate bonds
FAIR VALUE OF CERTAIN FINANCIAL ASSETS AND LIABILITIES
Assets measured at fair value		264,208,000
Level 2 | Municipal securities
FAIR VALUE OF CERTAIN FINANCIAL ASSETS AND LIABILITIES
Assets measured at fair value		361,000
Level 2 | U.S. government agency securities
FAIR VALUE OF CERTAIN FINANCIAL ASSETS AND LIABILITIES
Assets measured at fair value		159,585,000
Level 2 | U.S. treasuries
FAIR VALUE OF CERTAIN FINANCIAL ASSETS AND LIABILITIES
Assets measured at fair value		641,385,000
Level 2 | Commodity derivatives
FAIR VALUE OF CERTAIN FINANCIAL ASSETS AND LIABILITIES
Fair value liabilities	5,600,000	4,410,000
Level 3
FAIR VALUE OF CERTAIN FINANCIAL ASSETS AND LIABILITIES
Cash	0	0
Assets measured at fair value	0	0
Fair value liabilities	0	0
Cash and cash equivalents	0	0
Short-term investments		0
Accounts receivable, net	0	0
Investments		0
Accrued liabilities	0	0
Other liabilities	0
Level 3 | Money market funds
FAIR VALUE OF CERTAIN FINANCIAL ASSETS AND LIABILITIES
Assets measured at fair value	0	0
Level 3 | Certificates of deposit
FAIR VALUE OF CERTAIN FINANCIAL ASSETS AND LIABILITIES
Assets measured at fair value	$ 0	0
Level 3 | Commercial paper
FAIR VALUE OF CERTAIN FINANCIAL ASSETS AND LIABILITIES
Assets measured at fair value		0
Level 3 | Corporate bonds
FAIR VALUE OF CERTAIN FINANCIAL ASSETS AND LIABILITIES
Assets measured at fair value		0
Level 3 | Municipal securities
FAIR VALUE OF CERTAIN FINANCIAL ASSETS AND LIABILITIES
Assets measured at fair value		0
Level 3 | U.S. government agency securities
FAIR VALUE OF CERTAIN FINANCIAL ASSETS AND LIABILITIES
Assets measured at fair value		0
Level 3 | U.S. treasuries
FAIR VALUE OF CERTAIN FINANCIAL ASSETS AND LIABILITIES
Assets measured at fair value		$ 0

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DERIVATIVE INSTRUMENTS AND HEDGING ACTIVITIES - Fair value (Details) - USD ($) $ in Thousands	Jun. 30, 2024	Dec. 31, 2023
Derivatives designated as hedging instruments | Accounts receivables, net | Commodity contracts
DERIVATIVE INSTRUMENTS AND HEDGING ACTIVITIES
Fair value assets	$ 7,450	$ 4,480
Derivatives designated as hedging instruments | Other assets | Commodity contracts
DERIVATIVE INSTRUMENTS AND HEDGING ACTIVITIES
Fair value assets	0	316
Derivatives designated as hedging instruments | Accrued liabilities | Commodity contracts
DERIVATIVE INSTRUMENTS AND HEDGING ACTIVITIES
Fair value liabilities	(1,491)	(386)
Derivatives designated as hedging instruments | Other Liabilities | Commodity contracts
DERIVATIVE INSTRUMENTS AND HEDGING ACTIVITIES
Fair value liabilities	(359)	0
Derivatives not designated as hedging instruments | Accounts receivables, net | Foreign currency exchange contracts
DERIVATIVE INSTRUMENTS AND HEDGING ACTIVITIES
Fair value assets	1,210	138
Derivatives not designated as hedging instruments | Accrued liabilities | Foreign currency exchange contracts
DERIVATIVE INSTRUMENTS AND HEDGING ACTIVITIES
Fair value liabilities	$ (1,424)	$ (1,221)

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DERIVATIVE INSTRUMENTS AND HEDGING ACTIVITIES - Hedging designation (Details) - USD ($) $ in Thousands	3 Months Ended			6 Months Ended
	Jun. 30, 2024	Mar. 31, 2024	Jun. 30, 2023	Jun. 30, 2024	Jun. 30, 2023	Dec. 31, 2023
DERIVATIVE INSTRUMENTS AND HEDGING ACTIVITIES
Gain (loss) recognized in AOCI	$ 6,205	$ (2,131)	$ (1,266)	$ 4,074	$ (1,266)
Derivatives designated as hedging instruments | Commodity derivatives | Cash Flow Hedging
DERIVATIVE INSTRUMENTS AND HEDGING ACTIVITIES
Notional value	143,800			143,800		$ 98,300
Gain (loss) recognized in AOCI	$ 6,205		$ (1,266)	$ 8,483	$ (1,266)
Derivative Instrument, Gain (Loss) Reclassified from AOCI into Income, Effective Portion, Statement of Income or Comprehensive Income [Extensible Enumeration]	Cost of Goods and Services Sold		Cost of Goods and Services Sold	Cost of Goods and Services Sold	Cost of Goods and Services Sold
Gain (loss) reclassified from AOCI into income	$ 0		$ 0	$ (966)	$ 0
Amount to be reclassified				$ 8,400

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DERIVATIVE INSTRUMENTS AND HEDGING ACTIVITIES - Non hedging designation (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2024	Jun. 30, 2023	Jun. 30, 2024	Jun. 30, 2023	Dec. 31, 2023
DERIVATIVE INSTRUMENTS AND HEDGING ACTIVITIES
Held collateral amount	$ 7,400		$ 7,400
Post collateral amount	1,200		$ 1,200
Foreign currency exchange contracts | Maximum
DERIVATIVE INSTRUMENTS AND HEDGING ACTIVITIES
Term of derivative instrument			1 month
Derivatives not designated as hedging instruments | Foreign currency exchange contracts
DERIVATIVE INSTRUMENTS AND HEDGING ACTIVITIES
Notional value	$ 239,300		$ 239,300		$ 282,700
Derivative, Gain (Loss), Statement of Income or Comprehensive Income [Extensible Enumeration]	Other Nonoperating Income (Expense)	Other Nonoperating Income (Expense)	Other Nonoperating Income (Expense)	Other Nonoperating Income (Expense)
Amount of loss recognized in income on derivatives	$ (2,633)	$ (1,924)	$ 2,711	$ (9,775)

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INVENTORIES (Details) - USD ($) $ in Thousands	Jun. 30, 2024	Dec. 31, 2023
INVENTORIES
Raw materials	$ 271,341	$ 330,021
Work in process	1,526	1,403
Finished goods	561,537	639,982
Inventories	$ 834,404	$ 971,406

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PROPERTY AND EQUIPMENT, NET (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2024	Jun. 30, 2023	Jun. 30, 2024	Jun. 30, 2023	Dec. 31, 2023
PROPERTY AND EQUIPMENT, NET
Property and equipment, gross	$ 1,247,451		$ 1,247,451		$ 1,152,031
Less: accumulated depreciation and amortization	(286,489)		(286,489)		(261,235)
Property and equipment, net	960,962		960,962		890,796
Total depreciation and amortization expense	17,800	$ 14,700	36,900	$ 29,500
Land
PROPERTY AND EQUIPMENT, NET
Property and equipment, gross	158,505		158,505		152,253
Leasehold improvements
PROPERTY AND EQUIPMENT, NET
Property and equipment, gross	33,264		33,264		37,946
Furniture and fixtures
PROPERTY AND EQUIPMENT, NET
Property and equipment, gross	11,390		11,390		11,422
Office and computer equipment
PROPERTY AND EQUIPMENT, NET
Property and equipment, gross	26,833		26,833		25,560
Computer software
PROPERTY AND EQUIPMENT, NET
Property and equipment, gross	6,636		6,636		5,344
Equipment
PROPERTY AND EQUIPMENT, NET
Property and equipment, gross	462,428		462,428		426,466
Buildings
PROPERTY AND EQUIPMENT, NET
Property and equipment, gross	217,214		217,214		211,951
Vehicles
PROPERTY AND EQUIPMENT, NET
Property and equipment, gross	69,902		69,902		69,527
Assets under construction
PROPERTY AND EQUIPMENT, NET
Property and equipment, gross	$ 261,279		$ 261,279		$ 211,562

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GOODWILL AND OTHER INTANGIBLE ASSETS - Goodwill (Details) - USD ($) $ in Thousands	6 Months Ended
	Jun. 30, 2024	Jun. 30, 2023
GOODWILL AND OTHER INTANGIBLE ASSETS
Goodwill, beginning balance	$ 1,417,941	$ 1,417,941
Acquisitions	0	0
Goodwill, ending balance	1,417,941	1,417,941
Monster Energy Drinks
GOODWILL AND OTHER INTANGIBLE ASSETS
Goodwill, beginning balance	693,644	693,644
Acquisitions	0	0
Goodwill, ending balance	693,644	693,644
Strategic Brands
GOODWILL AND OTHER INTANGIBLE ASSETS
Goodwill, beginning balance	637,999	637,999
Acquisitions	0	0
Goodwill, ending balance	637,999	637,999
Alcohol Brands
GOODWILL AND OTHER INTANGIBLE ASSETS
Goodwill, beginning balance	86,298	86,298
Acquisitions	0	0
Goodwill, ending balance	86,298	86,298
Other
GOODWILL AND OTHER INTANGIBLE ASSETS
Goodwill, beginning balance	0	0
Acquisitions	0	0
Goodwill, ending balance	$ 0	$ 0

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GOODWILL AND OTHER INTANGIBLE ASSETS - Intangible assets (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2024	Jun. 30, 2023	Jun. 30, 2024	Jun. 30, 2023	Dec. 31, 2023
GOODWILL AND OTHER INTANGIBLE ASSETS
Amortizing intangibles	$ 144,577		$ 144,577		$ 144,582
Accumulated amortization	(77,668)		(77,668)		(74,699)
Amortizing intangibles, net	66,909		66,909		69,883
Non-amortizing intangibles	1,366,417		1,366,417		1,357,256
Intangibles, net	1,433,326		1,433,326		$ 1,427,139
Amortization expense	1,700	$ 900	3,000	$ 2,900
Loss on impairment of intangibles	$ 0		$ 0	2,800
Impairment charges on non-amortizing intangibles.		$ 2,800		$ 2,800
Minimum
GOODWILL AND OTHER INTANGIBLE ASSETS
Useful life of intangible assets	10 years		10 years
Maximum
GOODWILL AND OTHER INTANGIBLE ASSETS
Useful life of intangible assets	15 years		15 years

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GOODWILL AND OTHER INTANGIBLE ASSETS - Amortization expense (Details) - USD ($) $ in Thousands	Jun. 30, 2024	Dec. 31, 2023
Future estimated amortization expense related to amortizing intangibles
2024 (from July 1, 2024 to December 31, 2024)	$ 4,461
2025	5,947
2026	5,947
2027	5,946
2028	5,945
2029 and thereafter	38,663
Amortizing intangibles, net	$ 66,909	$ 69,883

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DISTRIBUTION AGREEMENTS (Details) - USD ($) $ in Millions	3 Months Ended		6 Months Ended
	Jun. 30, 2024	Jun. 30, 2023	Jun. 30, 2024	Jun. 30, 2023
DISTRIBUTION AGREEMENTS
Distribution agreement (in years)			20 years
Revenue recognized	$ 10.0	$ 10.0	$ 19.9	$ 19.9

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DEBT (Details) $ in Thousands	Jun. 30, 2024 USD ($)
DEBT
Total debt	$ 750,000
Less: unamortized debt issuance costs	(1,260)
Total debt, net of unamortized debt issuance costs	748,740
Long-term debt	748,740
Term loan
DEBT
Total debt	$ 750,000

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DEBT - Narratives (Details) - USD ($) $ in Thousands	Jun. 30, 2024	May 31, 2024
Line of credit | JPMorgan Chase Bank
DEBT
Maximum borrowing capacity		$ 1,500
Line of credit | HSBC Bank (China) Company Limited
DEBT
Maximum borrowing capacity		15,000
Effective interest rate	5.50%
Outstanding borrowings	$ 0
Term loan | JPMorgan Chase Bank
DEBT
Maximum borrowing capacity		750,000
Effective interest rate	6.30%
Revolving credit facility | JPMorgan Chase Bank
DEBT
Maximum borrowing capacity		$ 750,000
Outstanding borrowings	$ 0

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COMMITMENTS AND CONTINGENCIES (Details) - USD ($) $ in Millions	6 Months Ended
	Jun. 30, 2024	Dec. 31, 2023
Long-Term Purchase Commitment [Line Items]
Aggregate contractual obligations	$ 432.1
Loss contingencies	0.4	$ 0.3
Raw material items
Long-Term Purchase Commitment [Line Items]
Purchase commitments	$ 262.5
Obligation term ( in years)	1 year

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Accumulated Other Comprehensive Loss (Details) - USD ($) $ in Thousands	6 Months Ended
	Jun. 30, 2024	Jun. 30, 2023
Components of accumulated other comprehensive loss:
Balance at the beginning of the period	$ (125,337)	$ (159,073)
Other comprehensive income (loss) before reclassifications	(56,967)	3,348
Net current-period other comprehensive income (loss)	(56,967)	3,348
Balance at the end of the period	(182,304)	(155,725)
Accumulated Net Gains (Losses) on Commodity Derivatives
Components of accumulated other comprehensive loss:
Balance at the beginning of the period	4,410	0
Other comprehensive income (loss) before reclassifications	4,074	(1,266)
Net current-period other comprehensive income (loss)	4,074	(1,266)
Balance at the end of the period	8,484	(1,266)
Currency Translation Gains (Losses)
Components of accumulated other comprehensive loss:
Balance at the beginning of the period	(128,989)	(153,230)
Other comprehensive income (loss) before reclassifications	(61,799)	2,206
Net current-period other comprehensive income (loss)	(61,799)	2,206
Balance at the end of the period	(190,788)	(151,024)
Unrealized Gains (Losses) on Available-for-Sale Securities
Components of accumulated other comprehensive loss:
Balance at the beginning of the period	(758)	(5,843)
Other comprehensive income (loss) before reclassifications	758	2,408
Net current-period other comprehensive income (loss)	758	2,408
Balance at the end of the period	$ 0	$ (3,435)

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TREASURY STOCK (Details) - USD ($) $ / shares in Units, $ in Thousands, shares in Millions			3 Months Ended
	Jul. 01, 2024	Jun. 10, 2024	Jun. 30, 2024	Mar. 31, 2024	Mar. 31, 2023	Aug. 06, 2024	May 01, 2024	Nov. 07, 2023	Nov. 02, 2022
TREASURY STOCK
Aggregate purchase price			$ 3,145,817	$ 120,245	$ 90,378
Subsequent Event
TREASURY STOCK
Share repurchase program, authorized remaining amount						$ 342,400
November 2022 Repurchase Plan
TREASURY STOCK
Share repurchase program, authorized amount									$ 500,000
Common stock repurchased (in shares)			2.2
Average purchase price (in dollars per share)			$ 49.55
Repurchase price of stock			$ 107,700
November 2022 Repurchase Plan | Subsequent Event
TREASURY STOCK
Common stock repurchased (in shares)	0.7
Average purchase price (in dollars per share)	$ 49.82
Repurchase price of stock	$ 34,700
Share repurchase program, authorized remaining amount						0
November 2023 Repurchase Plan
TREASURY STOCK
Share repurchase program, authorized amount								$ 500,000
Common stock repurchased (in shares)			0.0
November 2023 Repurchase Plan | Subsequent Event
TREASURY STOCK
Common stock repurchased (in shares)	3.2
Average purchase price (in dollars per share)	$ 49.54
Repurchase price of stock	$ 157,600
Share repurchase program, authorized remaining amount						$ 342,400
Dutch auction tender offer repurchase
TREASURY STOCK
Common stock repurchased (in shares)		56.6
Average purchase price (in dollars per share)		$ 53.00
Aggregate purchase price		$ 3,000,000
Cash on hand		2,250,000
Combined borrowings		$ 750,000
Dutch auction tender offer repurchase | Maximum
TREASURY STOCK
Share repurchase program, authorized amount							$ 3,000,000

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STOCK-BASED COMPENSATION (Details) $ in Millions	3 Months Ended		6 Months Ended
	Jun. 30, 2024 USD ($)	Jun. 30, 2023 USD ($)	Jun. 30, 2024 USD ($) plan	Jun. 30, 2023 USD ($)
STOCK-BASED COMPENSATION
Stock-based compensation plans | plan			2
Compensation expense on share-based plans	$ 18.8	$ 18.6	$ 41.3	$ 34.6
Excess tax benefit realized for tax deductions from non-qualified stock option exercises and disqualifying dispositions of incentive stock options	$ 1.5	$ 4.1	$ 9.0	$ 30.0

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STOCK-BASED COMPENSATION - Fair Value Assumptions (Details) - Employee Stock Option	3 Months Ended		6 Months Ended
	Jun. 30, 2024	Jun. 30, 2023	Jun. 30, 2024	Jun. 30, 2023
Weighted-average assumptions used to estimate the fair value of options granted
Dividend yield (as a percent)	0.00%	0.00%	0.00%	0.00%
Expected volatility (as a percent)	27.50%	27.40%	27.50%	27.60%
Risk-free interest rate (as a percent)	4.40%	3.70%	4.30%	3.70%
Expected term	6 years 4 months 24 days	6 years 3 months 18 days	6 years 4 months 24 days	6 years 3 months 18 days

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STOCK-BASED COMPENSATION - Stock Option Activity (Details) - Employee Stock Option - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands	3 Months Ended		6 Months Ended	12 Months Ended
	Jun. 30, 2024	Mar. 31, 2024	Jun. 30, 2024	Dec. 31, 2023
Stock options, Number of Shares
Balance at the beginning of the period (in shares)		24,983	24,983
Granted (in shares)	62	4,332
Exercised (in shares)			(1,914)
Cancelled or forfeited (in shares)			(165)
Balance at the end of the period (in shares)	27,298		27,298	24,983
Vested and expected to vest in the future at the end of the period (in shares)	26,202		26,202
Exercisable at the end of the period (in shares)	15,087		15,087
Stock options, Weighted-Average Exercise Price Per Share
Balance at the beginning of the period (in dollars per share)		$ 33.64	$ 33.64
Granted (in dollars per share)	$ 51.89	$ 60.29
Exercised (in dollars per share)			27.22
Cancelled or forfeited (in dollars per share)			48.17
Balance at the end of the period (in dollars per share)	38.27		38.27	$ 33.64
Vested and expected to vest in the future at the end of the period (in dollars per share)	37.70		37.70
Exercisable at the end of the period (in dollars per share)	$ 29.21		$ 29.21
Weighted-Average Remaining Contractual Term (in years)
Weighted-Average Remaining Contractual Terms (in years)			6 years 1 month 6 days	5 years 9 months 18 days
Vested and expected to vest in the future at the end of the period			6 years
Exercisable at the end of the period			4 years 1 month 6 days
Aggregate Intrinsic Value
Balance at the beginning of the period		$ 598,866	$ 598,866
Balance at the end of the period	$ 366,872		366,872	$ 598,866
Vested and expected to vest in the future at the end of the period	363,597		363,597
Exercisable at the end of the period	$ 313,348		$ 313,348

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STOCK-BASED COMPENSATION - Equity Awards (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Millions	3 Months Ended			6 Months Ended
	Jun. 30, 2024	Mar. 31, 2024	Jun. 30, 2023	Jun. 30, 2024	Jun. 30, 2023
Employee Stock Option
STOCK-BASED COMPENSATION
Weighted-average grant-date fair value of options granted (in dollars per share)	$ 19.52		$ 21.14	$ 22.64	$ 18.25
Total intrinsic value of options exercised	$ 10.2		$ 26.9
Cash received from option exercises	$ 13.7		23.3	$ 52.1	$ 59.7
Stock units expected to vest (in shares)	26,202			26,202
Total unrecognized compensation expense related to non-vested shares granted to employees	$ 162.4			$ 162.4
Cost expected to be recognized over a weighted-average period				3 years 4 months 24 days
Restricted Stock Units, and Performance Share Units
STOCK-BASED COMPENSATION
Expected to vest over	1,600			1,600
Total unrecognized compensation expense related to non-vested shares granted to employees	$ 43.9			$ 43.9
Cost expected to be recognized over a weighted-average period				1 year 7 months 6 days
Number of Shares
Non-vested at the beginning of the period (in shares)		1,964		1,964
Granted (in shares)	27	502
Vested (in shares)				(824)
Forfeited/cancelled (in shares)				(1)
Non-vested at the end of the period (in shares)	1,668			1,668
Weighted Average Grant-Date Fair Value
Non-vested at the beginning of the period (in dollars per share)		$ 40.95		$ 40.95
Granted (in dollars per share)	$ 49.12	$ 57.04
Vested (in dollars per share)				40.69
Forfeited/cancelled (in dollars per share)				30.62
Non-vested at the end of the period (in dollars per share)	$ 46.06			$ 46.06
Restricted Stock Units, and/or Performance Share Units
STOCK-BASED COMPENSATION
Total unrecognized compensation expense related to non-vested shares granted to employees	$ 57.8		$ 157.9	$ 57.8	$ 157.9
Weighted Average Grant-Date Fair Value
Granted (in dollars per share)	$ 49.12		$ 59.17	$ 59.58	$ 48.93
Performance Share Units
STOCK-BASED COMPENSATION
Percentage of target performance				100.00%
Performance Share Units | Minimum
STOCK-BASED COMPENSATION
Percentage of target performance				0.00%
Performance Share Units | Maximum
STOCK-BASED COMPENSATION
Percentage of target performance				200.00%
Other Share-Based Awards
STOCK-BASED COMPENSATION
Total unrecognized compensation expense related to non-vested shares granted to employees	$ 0.1			$ 0.1
Cost expected to be recognized over a weighted-average period				6 months

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INCOME TAXES - Unrecognized Tax Benefit Rollforward (Details) $ in Thousands	6 Months Ended
	Jun. 30, 2024 USD ($)
Unrecognized Tax Benefits [Roll Forward]
Balance at the beginning of the period	$ 3,109
Additions for tax positions related to the current year	0
Additions for tax positions related to the prior year	0
Decreases for tax positions related to prior years	0
Balance at the end of the period	3,109
Accrued interest and penalties related to unrecognized tax benefits	$ 700

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EARNINGS PER SHARE (Details) - shares shares in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2024	Jun. 30, 2023	Jun. 30, 2024	Jun. 30, 2023
Weighted-average shares outstanding:
Basic	1,029,268	1,047,065	1,035,175	1,045,993
Dilutive	8,110	13,028	9,188	13,674
Diluted	1,037,378	1,060,093	1,044,363	1,059,667
Totaling options and awards outstanding (in shares)	8,800	4,100	6,900	2,600

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SEGMENT INFORMATION - Net Revenues (Details) $ in Thousands	3 Months Ended		6 Months Ended		18 Months Ended
	Jun. 30, 2024 USD ($)	Jun. 30, 2023 USD ($)	Jun. 30, 2024 USD ($) segment	Jun. 30, 2023 USD ($)	Jun. 30, 2024 USD ($)
SEGMENT INFORMATION
Number of reportable segments | segment			4
Number of operating segments | segment			4
Net Sales	$ 1,900,597	$ 1,854,961	$ 3,799,695	$ 3,553,891
Operating Income	527,163	523,805	1,069,154	1,008,870
Income before tax	551,539	538,964	1,129,285	1,036,523
Depreciation and amortization	19,438	15,576	39,913	32,384
Recognition of deferred revenue	10,000	10,000	19,900	19,900
Corporate and unallocated
SEGMENT INFORMATION
Net Sales	0	0	0	0
Operating Income	(125,608)	(124,328)	(268,742)	(244,677)
Income before tax	(102,308)	(109,914)	(210,758)	(218,658)
Depreciation and amortization	2,384	2,406	6,244	4,830
Monster Energy Drinks
SEGMENT INFORMATION
Net Sales	1,742,808	1,686,887	3,471,859	3,248,555
Monster Energy Drinks | Operating segment
SEGMENT INFORMATION
Net Sales	1,742,808	1,686,887	3,471,859	3,248,555
Operating Income	612,255	597,922	1,240,377	1,158,740
Income before tax	613,401	598,656	1,242,561	1,160,330
Depreciation and amortization	13,105	8,817	25,713	17,806
Recognition of deferred revenue	10,000	10,000			$ 19,900
Strategic Brands
SEGMENT INFORMATION
Net Sales	109,222	99,690	217,666	186,048
Strategic Brands | Operating segment
SEGMENT INFORMATION
Net Sales	109,222	99,690	217,666	186,048
Operating Income	61,659	55,137	123,677	106,909
Income before tax	61,672	55,149	123,707	106,938
Depreciation and amortization	224	196	453	417
Alcohol Brands
SEGMENT INFORMATION
Net Sales	41,564	61,076	97,634	107,366
Alcohol Brands | Operating segment
SEGMENT INFORMATION
Net Sales	41,564	61,076	97,634	107,366
Operating Income	(22,561)	(6,577)	(28,577)	(13,460)
Income before tax	(22,657)	(6,584)	(28,672)	(13,451)
Depreciation and amortization	3,668	4,106	7,406	8,157
Other
SEGMENT INFORMATION
Net Sales	7,003	7,308	12,536	11,922
Other | Operating segment
SEGMENT INFORMATION
Net Sales	7,003	7,308	12,536	11,922
Operating Income	1,418	1,651	2,419	1,358
Income before tax	1,431	1,657	2,447	1,364
Depreciation and amortization	$ 57	$ 51	$ 97	$ 1,174

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SEGMENT INFORMATION - Expenses (Details) - USD ($) $ in Millions	3 Months Ended		6 Months Ended
	Jun. 30, 2024	Jun. 30, 2023	Jun. 30, 2024	Jun. 30, 2023
SEGMENT INFORMATION
Stock-based compensation expense	$ 18.8	$ 18.6	$ 41.3	$ 34.6
Corporate and unallocated
SEGMENT INFORMATION
Payroll costs	87.5	82.6	186.1	162.9
Stock-based compensation expense	17.8	18.1	39.7	33.8
Professional service expenses	14.5	25.3	34.5	47.4
Other operating expenses	$ 23.6	$ 16.4	$ 48.1	$ 34.4

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SEGMENT INFORMATION - Concentration Risk (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended		15 Months Ended
	Jun. 30, 2024	Jun. 30, 2023	Jun. 30, 2024	Jun. 30, 2023	Jun. 30, 2024
SEGMENT INFORMATION
Net Sales	$ 1,900,597	$ 1,854,961	$ 3,799,695	$ 3,553,891
Sales | Outside United States
SEGMENT INFORMATION
Net Sales	$ 746,000	$ 715,400	$ 1,490,000	$ 1,340,000
Sales | Customer concentration | Outside United States
SEGMENT INFORMATION
Percentage of net sales			39.00%	10.00%	39.00%
Coca-Cola Europacific Partners | Sales | Customer concentration
SEGMENT INFORMATION
Percentage of net sales	14.00%	14.00%		13.00%
Coca-Cola Europacific Partners | Sales | Customer concentration | Outside United States
SEGMENT INFORMATION
Percentage of net sales			14.00%
Coca-Cola Consolidated, Inc | Sales | Customer concentration
SEGMENT INFORMATION
Percentage of net sales	11.00%		10.00%	10.00%
Reyes Holdings, LLC | Sales | Customer concentration
SEGMENT INFORMATION
Percentage of net sales	10.00%	10.00%	9.00%
Coca Cola Company | Sales | Customer concentration
SEGMENT INFORMATION
Percentage of net sales		10.00%
Coca Cola Company | Sales | Customer concentration | Outside United States
SEGMENT INFORMATION
Percentage of net sales				38.00%

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SEGMENT INFORMATION - Goodwill and other intangible assets (Details) - USD ($) $ in Thousands	Jun. 30, 2024	Dec. 31, 2023
SEGMENT INFORMATION
Goodwill and other intangible assets	$ 2,851,267	$ 2,845,080
Monster Energy Drinks | Operating segment
SEGMENT INFORMATION
Goodwill and other intangible assets	1,671,799	1,663,814
Strategic Brands | Operating segment
SEGMENT INFORMATION
Goodwill and other intangible assets	982,435	982,471
Alcohol Brands | Operating segment
SEGMENT INFORMATION
Goodwill and other intangible assets	$ 197,033	$ 198,795

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RELATED PARTY TRANSACTIONS (Details) $ in Thousands	3 Months Ended		6 Months Ended		15 Months Ended	18 Months Ended
	Jun. 30, 2024 USD ($)	Jun. 30, 2023 USD ($)	Jun. 30, 2024 USD ($) director	Jun. 30, 2023 USD ($)	Jun. 30, 2024 USD ($)	Jun. 30, 2024 USD ($)	Dec. 31, 2023 USD ($)
RELATED PARTY TRANSACTIONS
Net Sales	$ 1,900,597	$ 1,854,961	$ 3,799,695	$ 3,553,891
Expenses incurred in connection with materials or services provided by a related party	492,343	450,417	977,480	863,201
Monster Energy Drinks
RELATED PARTY TRANSACTIONS
Net Sales	1,742,808	1,686,887	3,471,859	3,248,555
Related Party | Coca Cola Company
RELATED PARTY TRANSACTIONS
Net Sales	55,500	33,200	97,200	68,300
Purchases from related party	$ 6,900	8,300	$ 14,900	14,800
Related Party | Coca Cola Company | Voting Interests
RELATED PARTY TRANSACTIONS
Related Party Ownership Interest (as a percent)	20.90%		20.90%		20.90%	20.90%
Related Party | TCCC Subsidiaries and TCCC Related parties
RELATED PARTY TRANSACTIONS
Commission expenses	$ 19,800	18,100	$ 42,300	33,800
Related Party | TCCC Subsidiaries and TCCC Related parties | Monster Energy Drinks
RELATED PARTY TRANSACTIONS
Contract manufacturing expenses		7,500	9,600
Related Party | TCCC Related Parties and TCCC Independent Bottlers | Operating expense
RELATED PARTY TRANSACTIONS
Commission expenses	8,700	8,100	18,400	16,900
Related Party | TCCC Subsidiaries
RELATED PARTY TRANSACTIONS
Accounts receivable, net	110,998		110,998		$ 110,998	$ 110,998	$ 135,246
Accounts payable	(51,756)		(51,756)		(51,756)	(51,756)	(68,386)
Accrued promotional allowances	(14,169)		(14,169)		(14,169)	(14,169)	(13,794)
Accrued liabilities	(20,375)		(20,375)		(20,375)	(20,375)	$ (19,745)
Related Party | TCCC Subsidiaries | Monster Energy Drinks
RELATED PARTY TRANSACTIONS
Contract manufacturing expenses			$ 18,600	15,000
Principal Owners
RELATED PARTY TRANSACTIONS
Number of directors | director			1
Expenses incurred in connection with materials or services provided by a related party	$ 1,700	$ 1,000	$ 3,600	$ 2,100
Business Travelling Expenses					$ 30	$ 30