--- ticker: MNST company: Monster Beverage Corporation filing_type: 10-K year_current: 2025 year_prior: 2024 risks_added: 5 risks_removed: 9 risks_modified: 42 risks_unchanged: 23 source: SEC EDGAR url: https://riskdiff.com/mnst/2025-vs-2024/ markdown_url: https://riskdiff.com/mnst/2025-vs-2024/index.md generated: 2026-05-10 --- # Monster Beverage Corporation: 10-K Risk Factor Changes 2025 vs 2024 > Source: U.S. Securities and Exchange Commission (EDGAR) > Generated: 2026-05-10 > All data extracted directly from official filings. No hallucinated content. > **[AI-Generated Summary]** The paragraph below was produced by a language > model and may contain errors. All other content on this page is deterministically > extracted from the original SEC filing. > Monster Beverage substantively modified 42 existing risk disclosures while adding 5 new risks focused on pricing actions and operating income, and removing 9 risks primarily related to the Bang Energy acquisition and historical financial presentation items. The modifications concentrated on core business operational risks including gross billings, results of operations, and business challenges, reflecting a shift from acquisition-specific disclosures to ongoing operational risk management. The net effect shows Monster Beverage refining its risk disclosure framework by de-emphasizing completed acquisition-related factors and legacy financial presentation matters in favor of current operational and pricing strategy considerations. --- ## Summary | Status | Count | |--------|-------| | New risks added | 5 | | Risks removed | 9 | | Risks modified | 42 | | Unchanged | 23 | --- ## New in Current Filing: Pricing Actions We implemented price increases (i) effective November 1, 2024 (for core brands and packages) and April 1, 2023 (for limited pack sizes) in the United States, and (ii) at various times in certain international markets during 2024 and 2023 (collectively, the "Pricing Actions"). The Pricing Actions positively impacted gross profit margins in 2024 as compared to 2023. --- ## New in Current Filing: Operating Income Operating income was $1.93 billion for the year ended December 31, 2024, a decrease of approximately $23.1 million, or 1.2% lower than operating income of $1.95 billion for the year ended December 31, 2023. Operating income as a percentage of net sales decreased to 25.8% for the year ended December 31, 2024 from 27.4% for the year ended December 31, 2023. Operating income for the year ended December 31, 2024 decreased primarily due to the Alcohol Impairment Charges partially offset by an increase in gross profit. Operating income was $536.3 million and $409.3 million for the years ended December 31, 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 $2.46 billion for the year ended December 31, 2024, an increase of approximately $123.7 million, or 5.3% higher than operating income of $2.34 billion for the year ended December 31, 2023. The increase in operating income for the Monster Energy® Drinks segment was primarily the result of a $233.4 million increase in gross profit. Operating income for the Strategic Brands segment, exclusive of corporate and unallocated expenses, was $233.8 million for the year ended December 31, 2024, an increase of approximately $26.6 million, or 12.8% higher than operating income of $207.1 million for the year ended December 31, 2023. The increase in operating income for the Strategic Brands segment was primarily the result of a $35.5 million increase in gross profit. Operating loss for the Alcohol Brands segment, exclusive of corporate and unallocated expenses, was $200.3 million for the year ended December 31, 2024, an increase of approximately $119.2 million, or 146.9% higher than operating loss of $81.1 million for the year ended December 31, 2023. The increase in the operating loss for the Alcohol Brands segment for the year ended December 31, 2024 was primarily the result of the Alcohol Impairment Charges. Operating income for the Other segment, exclusive of corporate and unallocated expenses, was $4.6 million for the year ended December 31, 2024, an increase of approximately $1.1 million, or 30.4% higher than operating income of $3.6 million for the year ended December 31, 2023. The increase in operating income for the year ended December 31, 2024 was primarily the result of the increase in gross profit. --- ## New in Current Filing: Interest and Other Income (Expense), net Interest and other income (expense), net, was $59.2 million for the year ended December 31, 2024, as compared to interest and other income (expense), net, of $115.1 million for the year ended December 31, 2023. Foreign currency transaction gains (losses) were ($26.4) million and ($60.2) million for the years ended December 31, 2024 and 2023, respectively. Interest income was $115.0 million and $130.0 million for the years ended December 31, 2024 and 2023, respectively. The decrease in interest income for the year ended December 31, 2024 was primarily related to lower short- and long-term investment balances as a result of treasury stock repurchases made during the year ended December 31, 2024. Interest expense was $27.9 million and $0.4 million for the years ended December 31, 2024 and 2023, respectively. Interest and other income (expense), net included a gain on transaction of $45.4 million related to the acquisition of Bang Energy ("Bang Transaction Gain") for the year ended December 31, 2023. 49 49 Table of ContentsProvision for Income Taxes Provision for income taxes was $480.4 million for the year ended December 31, 2024, an increase of $42.9 million, or 9.8% higher than the provision for income taxes of $437.5 million for the year ended December 31, 2023. The effective combined federal, state and foreign tax rate was 24.1% and 21.2% for the years ended December 31, 2024 and 2023, respectively. The increase in the effective tax rate was primarily attributable to a decrease in the stock-based compensation deduction for the year ended December 31, 2024.Net IncomeNet income was $1.51 billion for the year ended December 31, 2024, a decrease of $121.9 million, or 7.5% lower than net income of $1.63 billion for the year ended December 31, 2023. The decrease in net income for the year ended December 31, 2024 was primarily due to the Alcohol Impairment Charges.Key Business MetricsWe 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" below.Non-GAAP Financial Measures and Other Key MetricsGross Billings**Gross billings were $8.74 billion for the year ended December 31, 2024, an increase of approximately $506.0 million, or 6.1% higher than gross billings of $8.23 billion for the year ended December 31, 2023. Net changes in foreign currency exchange rates had an unfavorable impact on gross billings of approximately $246.9 million for the year ended December 31, 2024. Gross billings on a foreign currency adjusted basis increased 9.1% for the year ended December 31, 2024.Gross billings for the Monster Energy® Drinks segment were $8.04 billion for the year ended December 31, 2024, an increase of approximately $452.1 million, or 6.0% higher than gross billings of $7.59 billion for the year ended December 31, 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 $209.7 million for the year ended December 31, 2024. Gross billings for the Monster Energy® Drinks segment on a foreign currency adjusted basis increased 8.7% for the year ended December 31, 2024.Gross billings for the Strategic Brands segment were $490.8 million for the year ended December 31, 2024, an increase of $65.5 million, or 15.4% higher than gross billings of $425.3 million for the year ended December 31, 2023. Gross billings for the Strategic Brands segment increased primarily due to increased sales by volume of our Burn®, Predator®, NOS® and Fury® brand energy drinks. Net changes in foreign currency exchange rates had an unfavorable impact on gross billings in the Strategic Brands segment of approximately $37.2 million for the year ended December 31, 2024. Gross billings for the Strategic Brands segment on a foreign currency adjusted basis increased 24.2% for the year ended December 31, 2024.Gross billings for the Alcohol Brands segment were $176.8 million for the year ended December 31, 2024, a decrease of $11.8 million, or 6.3% lower than gross billings of $188.6 million for the year ended December 31, 2023. The decrease in gross billings for the year ended December 31, 2024 was primarily due to decreased sales by volume of craft beers.Gross billings for the Other segment were $23.7 million for the year ended December 31, 2024, an increase of $0.2 million, or 0.7% higher than gross billings of $23.5 million for the year ended December 31, 2023. 50 Table of Contents Table of Contents Table of Contents Provision for Income Taxes Provision for income taxes was $480.4 million for the year ended December 31, 2024, an increase of $42.9 million, or 9.8% higher than the provision for income taxes of $437.5 million for the year ended December 31, 2023. The effective combined federal, state and foreign tax rate was 24.1% and 21.2% for the years ended December 31, 2024 and 2023, respectively. The increase in the effective tax rate was primarily attributable to a decrease in the stock-based compensation deduction for the year ended December 31, 2024.Net IncomeNet income was $1.51 billion for the year ended December 31, 2024, a decrease of $121.9 million, or 7.5% lower than net income of $1.63 billion for the year ended December 31, 2023. The decrease in net income for the year ended December 31, 2024 was primarily due to the Alcohol Impairment Charges.Key Business MetricsWe 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" below.Non-GAAP Financial Measures and Other Key MetricsGross Billings**Gross billings were $8.74 billion for the year ended December 31, 2024, an increase of approximately $506.0 million, or 6.1% higher than gross billings of $8.23 billion for the year ended December 31, 2023. Net changes in foreign currency exchange rates had an unfavorable impact on gross billings of approximately $246.9 million for the year ended December 31, 2024. Gross billings on a foreign currency adjusted basis increased 9.1% for the year ended December 31, 2024.Gross billings for the Monster Energy® Drinks segment were $8.04 billion for the year ended December 31, 2024, an increase of approximately $452.1 million, or 6.0% higher than gross billings of $7.59 billion for the year ended December 31, 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 $209.7 million for the year ended December 31, 2024. Gross billings for the Monster Energy® Drinks segment on a foreign currency adjusted basis increased 8.7% for the year ended December 31, 2024.Gross billings for the Strategic Brands segment were $490.8 million for the year ended December 31, 2024, an increase of $65.5 million, or 15.4% higher than gross billings of $425.3 million for the year ended December 31, 2023. Gross billings for the Strategic Brands segment increased primarily due to increased sales by volume of our Burn®, Predator®, NOS® and Fury® brand energy drinks. Net changes in foreign currency exchange rates had an unfavorable impact on gross billings in the Strategic Brands segment of approximately $37.2 million for the year ended December 31, 2024. Gross billings for the Strategic Brands segment on a foreign currency adjusted basis increased 24.2% for the year ended December 31, 2024.Gross billings for the Alcohol Brands segment were $176.8 million for the year ended December 31, 2024, a decrease of $11.8 million, or 6.3% lower than gross billings of $188.6 million for the year ended December 31, 2023. The decrease in gross billings for the year ended December 31, 2024 was primarily due to decreased sales by volume of craft beers.Gross billings for the Other segment were $23.7 million for the year ended December 31, 2024, an increase of $0.2 million, or 0.7% higher than gross billings of $23.5 million for the year ended December 31, 2023. Provision for Income Taxes Provision for income taxes was $480.4 million for the year ended December 31, 2024, an increase of $42.9 million, or 9.8% higher than the provision for income taxes of $437.5 million for the year ended December 31, 2023. The effective combined federal, state and foreign tax rate was 24.1% and 21.2% for the years ended December 31, 2024 and 2023, respectively. The increase in the effective tax rate was primarily attributable to a decrease in the stock-based compensation deduction for the year ended December 31, 2024.Net IncomeNet income was $1.51 billion for the year ended December 31, 2024, a decrease of $121.9 million, or 7.5% lower than net income of $1.63 billion for the year ended December 31, 2023. The decrease in net income for the year ended December 31, 2024 was primarily due to the Alcohol Impairment Charges.Key Business MetricsWe 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" below.Non-GAAP Financial Measures and Other Key MetricsGross Billings**Gross billings were $8.74 billion for the year ended December 31, 2024, an increase of approximately $506.0 million, or 6.1% higher than gross billings of $8.23 billion for the year ended December 31, 2023. Net changes in foreign currency exchange rates had an unfavorable impact on gross billings of approximately $246.9 million for the year ended December 31, 2024. Gross billings on a foreign currency adjusted basis increased 9.1% for the year ended December 31, 2024.Gross billings for the Monster Energy® Drinks segment were $8.04 billion for the year ended December 31, 2024, an increase of approximately $452.1 million, or 6.0% higher than gross billings of $7.59 billion for the year ended December 31, 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 $209.7 million for the year ended December 31, 2024. Gross billings for the Monster Energy® Drinks segment on a foreign currency adjusted basis increased 8.7% for the year ended December 31, 2024.Gross billings for the Strategic Brands segment were $490.8 million for the year ended December 31, 2024, an increase of $65.5 million, or 15.4% higher than gross billings of $425.3 million for the year ended December 31, 2023. Gross billings for the Strategic Brands segment increased primarily due to increased sales by volume of our Burn®, Predator®, NOS® and Fury® brand energy drinks. Net changes in foreign currency exchange rates had an unfavorable impact on gross billings in the Strategic Brands segment of approximately $37.2 million for the year ended December 31, 2024. Gross billings for the Strategic Brands segment on a foreign currency adjusted basis increased 24.2% for the year ended December 31, 2024.Gross billings for the Alcohol Brands segment were $176.8 million for the year ended December 31, 2024, a decrease of $11.8 million, or 6.3% lower than gross billings of $188.6 million for the year ended December 31, 2023. The decrease in gross billings for the year ended December 31, 2024 was primarily due to decreased sales by volume of craft beers.Gross billings for the Other segment were $23.7 million for the year ended December 31, 2024, an increase of $0.2 million, or 0.7% higher than gross billings of $23.5 million for the year ended December 31, 2023. --- ## New in Current Filing: Change in Accounting Principle and Stock Split Adjustments We have audited the adjustments to the 2022 consolidated financial statement footnotes to retrospectively apply the effects from the adoption of Accounting Standards Update 2023-07, Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosures, as described in Note 1. Additionally, as described in Note 1, in 2023 the Company's Board of Directors approved a two-for-one stock split distributed in the form of a stock dividend, and all references to number of shares and per share information in the consolidated financial statements have been adjusted to reflect the stock split on a retroactive basis. We have also audited the adjustments that were retrospectively applied to restate the number of shares and per share information reflected in the 2022 consolidated financial statements. In our opinion, the adjustments for the change in accounting principle and stock split described above are appropriate and have been properly applied. However, we were not engaged to audit, review, or apply any procedures to the 2022 consolidated financial statements of the Company other than with respect to such adjustments and, accordingly, we do not express an opinion or any other form of assurance on the 2022 consolidated financial statements taken as a whole. --- ## New in Current Filing: 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 ​ - ​ ​ - ​ ​ 90,853 ​ ​ - ​ ​ - ​ - ​ ​ - ​ ​ 90,853 Stock options/awards ​ 3,737 ​ ​ 19 ​ ​ 78,954 ​ ​ - ​ ​ - ​ - ​ ​ - ​ ​ 78,973 Unrealized gain (loss), net on available-for-sale securities ​ - ​ ​ - ​ ​ - ​ ​ - ​ ​ 758 ​ - ​ ​ - ​ ​ 758 Repurchase of common stock ​ - ​ ​ - ​ ​ - ​ ​ - ​ ​ - ​ (72,229) ​ ​ (3,805,750) ​ ​ (3,805,750) Foreign currency translation ​ - ​ ​ - ​ ​ - ​ ​ - ​ ​ (140,941) ​ - ​ ​ - ​ ​ (140,941) Net gain (loss) on commodity derivatives ​ - ​ ​ - ​ ​ - ​ ​ - ​ ​ (3,967) ​ - ​ ​ - ​ ​ (3,967) Net income - ​ ​ - ​ ​ - ​ ​ 1,509,048 ​ ​ - ​ - ​ ​ - ​ ​ 1,509,048 --- ## No Match in Current: Performance Graph *This section from the 2024 filing does not have a high-confidence textual match in 2025. It may have been removed, merged, or substantially reworded.* The following graph shows a five-year comparison of cumulative total returns:1 ​ ​ 1Annual return assumes reinvestment of dividends. Cumulative total return assumes an initial investment of $100 on December 31, 2018. The Company's self-selected peer group is comprised of TCCC, Keurig Dr. Pepper Inc., Constellation Brands, Inc., Molson Coors Beverage Company and PepsiCo, Inc. ITEM 6.[RESERVED] ​ 44 44 Table of ContentsITEM 7.MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONSThe following Management's Discussion and Analysis of Financial Condition and Results of Operations ("MD&A") is provided as a supplement to - and should be read in conjunction with - our financial statements and the accompanying notes ("Notes") included in Part II, Item 8 of this Form 10-K. This discussion contains forward-looking statements that are based on management's current expectations, estimates and projections about our business and operations. Our actual results may differ materially from those currently anticipated and expressed in such forward-looking statements. See "Forward-Looking Statements" and "Part I, Item 1A - Risk Factors."This overview provides our perspective on the individual sections of MD&A. MD&A includes the following sections:●Bang Energy Acquisition - a discussion of our acquisition of Bang Energy on July 31, 2023;●Pricing Actions - a discussion of certain pricing actions implemented during 2022 and 2023;●Our Business - a general description of our business, the value drivers of our business, and opportunities and risks facing our Company, stock repurchases, acquisitions and divestitures;●Results of Operations - an analysis of our consolidated results of operations for the years ended December 31, 2023 and 2022;●Sales - details of our sales measured on a quarterly basis in both dollars and cases;●Inflation - information about the impact that inflation may or may not have on our results;●Liquidity and Capital Resources - an analysis of our cash flows, sources and uses of cash and contractual obligations;●Accounting Policies and Pronouncements - a discussion of accounting policies that require critical judgments and estimates including newly issued accounting pronouncements;●Forward-Looking Statements - cautionary information about forward-looking statements and a description of certain risks and uncertainties that could cause our actual results to differ materially from the Company's historical results or our current expectations or projections; and●Market Risks - information about market risks and risk management. (See "Forward-Looking Statements" and "Part II, Item 7A - Qualitative and Quantitative Disclosures about Market Risks").Bang Energy AcquisitionOn July 31, 2023, we completed the Bang Transaction. The acquired assets primarily include the Bang Energy® drink business and a beverage production facility in Phoenix, AZ.​Pricing ActionsWe implemented pricing actions including (i) price increases effective April 1, 2022 (limited pack sizes), September 1, 2022 and April 1, 2023 (limited pack sizes) in the United States, (ii) price increases at various times in certain international markets during 2022 and 2023 and (iii) decreased promotional allowances as a percentage of net sales in certain markets during 2022 and 2023 (collectively, the "Pricing Actions"). The Pricing Actions positively impacted gross profit margins in 2023.45 Table of Contents Table of Contents Table of Contents ITEM 7.MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONSThe following Management's Discussion and Analysis of Financial Condition and Results of Operations ("MD&A") is provided as a supplement to - and should be read in conjunction with - our financial statements and the accompanying notes ("Notes") included in Part II, Item 8 of this Form 10-K. This discussion contains forward-looking statements that are based on management's current expectations, estimates and projections about our business and operations. Our actual results may differ materially from those currently anticipated and expressed in such forward-looking statements. See "Forward-Looking Statements" and "Part I, Item 1A - Risk Factors."This overview provides our perspective on the individual sections of MD&A. MD&A includes the following sections:●Bang Energy Acquisition - a discussion of our acquisition of Bang Energy on July 31, 2023;●Pricing Actions - a discussion of certain pricing actions implemented during 2022 and 2023;●Our Business - a general description of our business, the value drivers of our business, and opportunities and risks facing our Company, stock repurchases, acquisitions and divestitures;●Results of Operations - an analysis of our consolidated results of operations for the years ended December 31, 2023 and 2022;●Sales - details of our sales measured on a quarterly basis in both dollars and cases;●Inflation - information about the impact that inflation may or may not have on our results;●Liquidity and Capital Resources - an analysis of our cash flows, sources and uses of cash and contractual obligations;●Accounting Policies and Pronouncements - a discussion of accounting policies that require critical judgments and estimates including newly issued accounting pronouncements;●Forward-Looking Statements - cautionary information about forward-looking statements and a description of certain risks and uncertainties that could cause our actual results to differ materially from the Company's historical results or our current expectations or projections; and●Market Risks - information about market risks and risk management. (See "Forward-Looking Statements" and "Part II, Item 7A - Qualitative and Quantitative Disclosures about Market Risks").Bang Energy AcquisitionOn July 31, 2023, we completed the Bang Transaction. The acquired assets primarily include the Bang Energy® drink business and a beverage production facility in Phoenix, AZ.​Pricing ActionsWe implemented pricing actions including (i) price increases effective April 1, 2022 (limited pack sizes), September 1, 2022 and April 1, 2023 (limited pack sizes) in the United States, (ii) price increases at various times in certain international markets during 2022 and 2023 and (iii) decreased promotional allowances as a percentage of net sales in certain markets during 2022 and 2023 (collectively, the "Pricing Actions"). The Pricing Actions positively impacted gross profit margins in 2023. ITEM 7.MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS The following Management's Discussion and Analysis of Financial Condition and Results of Operations ("MD&A") is provided as a supplement to - and should be read in conjunction with - our financial statements and the accompanying notes ("Notes") included in Part II, Item 8 of this Form 10-K. This discussion contains forward-looking statements that are based on management's current expectations, estimates and projections about our business and operations. Our actual results may differ materially from those currently anticipated and expressed in such forward-looking statements. See "Forward-Looking Statements" and "Part I, Item 1A - Risk Factors." This overview provides our perspective on the individual sections of MD&A. MD&A includes the following sections: --- ## No Match in Current: Bang Energy Acquisition *This section from the 2024 filing does not have a high-confidence textual match in 2025. It may have been removed, merged, or substantially reworded.* On July 31, 2023, we completed the Bang Transaction. The acquired assets primarily include the Bang Energy® drink business and a beverage production facility in Phoenix, AZ. ​ --- ## No Match in Current: Gross Profit Margins *This section from the 2024 filing does not have a high-confidence textual match in 2025. It may have been removed, merged, or substantially reworded.* ​ During the year ended December 31, 2023, we experienced an improvement in our gross profit margins as compared to the year ended December 31, 2022. This improvement was primarily attributable to (i) the Pricing Actions, (ii) our decreased reliance on imported cans and (iii) improved finished product inventory levels in closer proximity to our customers, resulting in a reduction of long-distance freight costs. ​ During the COVID-19 pandemic we prioritized ensuring product availability for our customers and consumers. This strategic direction remained in place throughout the global supply chain challenges and disruptions, despite adversely impacting our profitability. We continue to stand by our strategy to ensure product availability and solidify the continued long-term growth of our brands. ​ We continue to address the controllable challenges in our supply chain. --- ## No Match in Current: Operating Expenses *This section from the 2024 filing does not have a high-confidence textual match in 2025. It may have been removed, merged, or substantially reworded.* Total operating expenses were $1.84 billion for the year ended December 31, 2023, an increase of approximately $251.0 million, or 15.8% higher than total operating expenses of $1.59 billion for the year ended December 31, 2022. ​ The increase in operating expenses was primarily due to increased general and administrative expenses of $80.9 million, including travel and entertainment, professional service fees (including legal and accounting) and depreciation and amortization, increased selling and marketing expenses of $92.2 million, including sponsorships and endorsements, point of sale, premiums and allocated trade development, and increased payroll expenses of $82.4 million. In addition, operating expenses for the year ended December 31, 2023 included $16.1 million of transaction costs related to the acquisition of Bang Energy and $42.7 million of impairment charges related to the Alcohol Brands segment (the "Alcohol Impairment Charges"). The Alcohol Impairment Charges, due in part to the continuing challenges in the craft beer and hard seltzer categories, relate to certain non-amortizing intangibles as well as property and equipment, acquired as part of the CANarchy transaction (as defined below in Note 2, "Acquisitions"). ​ Operating expenses as a percentage of net sales for the years ended December 31, 2023 and 2022 were 25.8% and 25.2%, respectively. --- ## No Match in Current: Interest and Other Income (Expense), net *This section from the 2024 filing does not have a high-confidence textual match in 2025. It may have been removed, merged, or substantially reworded.* ​ Interest and other income (expense), net, was $115.1 million for the year ended December 31, 2023, as compared to interest and other income (expense), net, of ($12.8) million for the year ended December 31, 2022. Foreign currency transaction gains (losses) were ($60.2) million and ($37.9) million for the years ended December 31, 2023 and 2022, respectively. Interest income was $130.0 million and $29.7 million for the years ended December 31, 2023 and 2022, respectively. Interest and other income (expense), net included a gain on transaction of $45.4 million related to the acquisition of Bang Energy ("Bang Transaction Gain") for the year ended December 31, 2023. --- ## No Match in Current: Balance, January 1, 2021 *This section from the 2024 filing does not have a high-confidence textual match in 2025. It may have been removed, merged, or substantially reworded.* 1,277,324 $ 6,386 $ 4,534,789 $ 6,432,074 $ 3,034 (221,130) $ (5,815,423) $ 5,160,860 Stock-based compensation - ​ ​ - ​ ​ 68,922 ​ ​ - ​ ​ - ​ - ​ ​ - ​ ​ 68,922 Stock options/awards 2,762 ​ ​ 14 ​ ​ 45,709 ​ ​ - ​ ​ - ​ - ​ ​ - ​ ​ 45,723 Unrealized gain (loss), net on available-for-sale securities - ​ - ​ - ​ - ​ (1,041) - ​ - ​ (1,041) Repurchase of common stock - ​ ​ - ​ ​ - ​ ​ - ​ ​ - ​ (310) ​ ​ (13,830) ​ ​ (13,830) Foreign currency translation - ​ ​ - ​ ​ - ​ ​ - ​ ​ (71,158) ​ - ​ ​ - ​ ​ (71,158) Net income - ​ ​ - ​ ​ - ​ ​ 1,377,475 ​ ​ - ​ - ​ ​ - ​ ​ 1,377,475 --- ## No Match in Current: (Tabular Dollars in Thousands, Except Per Share Amounts) *This section from the 2024 filing does not have a high-confidence textual match in 2025. It may have been removed, merged, or substantially reworded.* ​ Pale Ale®, Dallas Blonde®, Wild Basin®, Dale's®, Hop Rising®, The Beast Unleashed® and Nasty BeastTM Hard Tea to be its core trademarks. The Company also owns the intellectual property of its most important flavors for certain of its Monster Energy® Brand energy drinks in perpetuity.Leases - The Company leases identified assets comprised of real estate and equipment. Real estate leases consist primarily of office and warehouse space and equipment leases consist of vehicles and warehouse equipment. At the inception of a contract, the Company assesses whether the contract is, or contains, a lease. The Company's assessment is based on: (1) whether the contract involves the use of a distinct identified asset, (2) whether the Company obtains the right to substantially all the economic benefit from the use of the asset throughout the term, and (3) whether the Company has the right to direct the use of the asset. At inception of a lease, the Company allocates the consideration in the contract to each lease and non-lease component based on the component's relative stand-alone price to determine the lease payments. Lease and non-lease components are accounted for separately.Leases are classified as either finance leases or operating leases based on criteria in FASB ASC 842, "Leases". The Company's operating leases are comprised of real estate and warehouse equipment, and the Company's finance leases are comprised of vehicles. Right-of-use ("ROU") assets and lease liabilities are recognized at the lease commencement date based on the present value of lease payments over the lease term. As the Company's leases generally do not provide an implicit rate, the Company uses its incremental borrowing rate based on the estimated rate of interest for collateralized borrowing over a similar term of the lease payments at the commencement date. ROU assets also include any lease payments made and exclude lease incentives. Lease terms include options to extend or terminate the lease when it is reasonably certain that the Company will exercise that option. The Company has elected not to recognize ROU assets and lease liabilities for short-term operating leases that have a term of 12 months or less. Certain of the Company's real estate leases contain variable lease payments, including payments based on an index or rate. Variable lease payments based on an index or rate are initially measured using the index or rate in effect at the lease commencement date. Additional payments based on the change in an index or rate, or payments based on a change in the Company's portion of real estate taxes and insurance, are recorded as a period expense when incurred. Lease expense for operating leases, consisting of lease payments, is recognized on a straight-line basis over the lease term and is included in operating expenses in the consolidated statements of income. Lease expense for finance leases consists of the amortization of the ROU asset on a straight-line basis over the asset's estimated useful life and is included in operating expenses in the consolidated statement of income. Interest expense on finance leases is calculated using the amortized cost basis and is included in interest and other income (expense), net in the consolidated statements of income.Long-Lived Assets - Management regularly reviews property and equipment and other long-lived assets, including certain definite-lived intangible assets, for possible impairment. This review occurs annually, or more frequently if events or changes in circumstances indicate the carrying amount of the asset may not be recoverable. If there is indication of impairment, management then prepares an estimate of future cash flows (undiscounted and without interest charges) expected to result from the use of the asset and its eventual disposition. If these cash flows are less than the carrying amount of the asset, an impairment loss is recognized to write down the asset to its estimated fair value. The fair value is estimated using the present value of the future cash flows discounted at a rate commensurate with management's estimates of the business risks. Preparation of estimated expected future cash flows is inherently subjective and is based on management's best estimate of assumptions concerning expected future conditions. For the year ended December 31, 2023, an impairment charge of $4.3 million was recognized on property and equipment related to the Company's alcohol products. For the years ended December 31, 2022 and 2021 there were no impairment indicators identified. Long-lived assets held for sale are recorded at the lower of their carrying amount or fair value less cost to sell. Pale Ale®, Dallas Blonde®, Wild Basin®, Dale's®, Hop Rising®, The Beast Unleashed® and Nasty BeastTM Hard Tea to be its core trademarks. The Company also owns the intellectual property of its most important flavors for certain of its Monster Energy® Brand energy drinks in perpetuity. Leases - The Company leases identified assets comprised of real estate and equipment. Real estate leases consist primarily of office and warehouse space and equipment leases consist of vehicles and warehouse equipment. At the inception of a contract, the Company assesses whether the contract is, or contains, a lease. The Company's assessment is based on: (1) whether the contract involves the use of a distinct identified asset, (2) whether the Company obtains the right to substantially all the economic benefit from the use of the asset throughout the term, and (3) whether the Company has the right to direct the use of the asset. At inception of a lease, the Company allocates the consideration in the contract to each lease and non-lease component based on the component's relative stand-alone price to determine the lease payments. Lease and non-lease components are accounted for separately. Leases are classified as either finance leases or operating leases based on criteria in FASB ASC 842, "Leases". The Company's operating leases are comprised of real estate and warehouse equipment, and the Company's finance leases are comprised of vehicles. Right-of-use ("ROU") assets and lease liabilities are recognized at the lease commencement date based on the present value of lease payments over the lease term. As the Company's leases generally do not provide an implicit rate, the Company uses its incremental borrowing rate based on the estimated rate of interest for collateralized borrowing over a similar term of the lease payments at the commencement date. ROU assets also include any lease payments made and exclude lease incentives. Lease terms include options to extend or terminate the lease when it is reasonably certain that the Company will exercise that option. The Company has elected not to recognize ROU assets and lease liabilities for short-term operating leases that have a term of 12 months or less. Certain of the Company's real estate leases contain variable lease payments, including payments based on an index or rate. Variable lease payments based on an index or rate are initially measured using the index or rate in effect at the lease commencement date. Additional payments based on the change in an index or rate, or payments based on a change in the Company's portion of real estate taxes and insurance, are recorded as a period expense when incurred. Lease expense for operating leases, consisting of lease payments, is recognized on a straight-line basis over the lease term and is included in operating expenses in the consolidated statements of income. Lease expense for finance leases consists of the amortization of the ROU asset on a straight-line basis over the asset's estimated useful life and is included in operating expenses in the consolidated statement of income. Interest expense on finance leases is calculated using the amortized cost basis and is included in interest and other income (expense), net in the consolidated statements of income. Long-Lived Assets - Management regularly reviews property and equipment and other long-lived assets, including certain definite-lived intangible assets, for possible impairment. This review occurs annually, or more frequently if events or changes in circumstances indicate the carrying amount of the asset may not be recoverable. If there is indication of impairment, management then prepares an estimate of future cash flows (undiscounted and without interest charges) expected to result from the use of the asset and its eventual disposition. If these cash flows are less than the carrying amount of the asset, an impairment loss is recognized to write down the asset to its estimated fair value. The fair value is estimated using the present value of the future cash flows discounted at a rate commensurate with management's estimates of the business risks. Preparation of estimated expected future cash flows is inherently subjective and is based on management's best estimate of assumptions concerning expected future conditions. For the year ended December 31, 2023, an impairment charge of $4.3 million was recognized on property and equipment related to the Company's alcohol products. For the years ended December 31, 2022 and 2021 there were no impairment indicators identified. Long-lived assets held for sale are recorded at the lower of their carrying amount or fair value less cost to sell. 90 90 Table of ContentsMONSTER BEVERAGE CORPORATION AND SUBSIDIARIESNOTES TO CONSOLIDATED FINANCIAL STATEMENTS(Tabular Dollars in Thousands, Except Per Share Amounts)​Derivative Financial Instruments - The Company uses derivative financial instruments for the purpose of hedging risk exposures to fluctuations in foreign currency exchange rates and aluminum commodity prices. The Company's derivative instruments are recorded in the consolidated balance sheets at fair value. The Company values each derivative financial instrument by obtaining valuation information from a reliable and observable market source. For a derivative designated as a cash flow hedge, the derivative's mark to fair value is initially recorded as a component of accumulated other comprehensive income (loss) and subsequently reclassified into earnings when the hedged item affects earnings, unless it is no longer probable that the forecasted transaction will occur. Derivatives that do not qualify for hedge accounting are marked to fair value with gains and losses immediately recorded in earnings. In the consolidated statements of cash flows, derivative activities are classified based on the cash flows of the items being hedged. Upon the dedesignation of an effective derivative contract, the gains or losses are deferred in accumulated other comprehensive income (loss) until the originally hedged item affects earnings, unless it is probable the hedged item will not occur, at which time it is recognized immediately. Any gains or losses incurred after the dedesignation date are recorded in earnings immediately.Foreign Currency Translation and Transactions - The accounts of the Company's foreign subsidiaries are translated in accordance with FASB ASC 830. Foreign currency transaction gains and losses are recognized in other expense, net, at the time they occur. Net foreign currency exchange gains or losses resulting from the translation of assets and liabilities of foreign subsidiaries whose functional currency is not the U.S. dollar are recorded as a part of accumulated other comprehensive income (loss) in stockholders' equity. Unrealized foreign currency exchange gains and losses on certain intercompany transactions that are of a long-term investment nature (i.e., settlement is not planned or anticipated in the foreseeable future) are also recorded in accumulated other comprehensive income (loss) in stockholders' equity. During the years ended December 31, 2023, 2022 and 2021, 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 outstanding as of December 31, 2023 have terms of three months 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 under FASB ASC 815. Therefore, gains and losses on the Company's foreign currency exchange contracts are recognized in interest and other income (expense), net, in the consolidated statements of income, and are largely offset by the changes in the fair value of the underlying economically hedged item. For the years ended December 31, 2023, 2022 and 2021, aggregate foreign currency transaction gains (losses), including the gains or losses on forward currency exchange contracts, amounted to ($60.2) million, ($37.9) million and $0.3 million, respectively, and have been recorded in interest and other income(expense), net, in the accompanying consolidated statements of income.Revenue Recognition - See Note 3.Cost of Sales - Cost of sales consists of the costs of flavors, concentrates, supplement ingredients and/or beverage bases, the costs of raw materials utilized in the manufacture of beverages, co-packing fees, repacking fees, in-bound freight charges, as well as internal transfer costs, warehouse expenses incurred prior to the manufacture of the Company's finished products and certain quality control costs. In addition, the Company includes in costs of sales certain costs such as depreciation, amortization and payroll costs that relate to the direct manufacture by the Company of certain flavors and concentrates. Raw materials account for the largest portion of cost of sales. Raw materials include cans, bottles, other containers, flavors, ingredients and packaging materials.Operating Expenses - Operating expenses include selling expenses such as distribution expenses to transport products to customers and warehousing expenses after manufacture, as well as expenses for advertising, sampling and in-91 Table of ContentsMONSTER BEVERAGE CORPORATION AND SUBSIDIARIESNOTES TO CONSOLIDATED FINANCIAL STATEMENTS(Tabular Dollars in Thousands, Except Per Share Amounts)​ Table of Contents Table of Contents --- ## No Match in Current: 2. ACQUISITIONS *This section from the 2024 filing does not have a high-confidence textual match in 2025. It may have been removed, merged, or substantially reworded.* Bang Energy ​ On July 31, 2023, a subsidiary of the Company, Blast Asset Acquisition LLC, completed its acquisition of substantially all of the assets of Vital Pharmaceuticals, Inc. and certain of its affiliates (collectively, "Bang Energy") (the "Bang Transaction"). The acquired assets primarily include the Bang Energy® drinks business and a beverage production facility in Phoenix, AZ. ​ The Company accounted for the Bang Transaction in accordance with FASB ASC 805. Under the acquisition method of accounting, the Company allocated the purchase price of the acquisition to identifiable assets acquired and liabilities assumed based on their estimated fair values as of the acquisition date. During the year ended December 31, 2023, in connection with the Bang Transaction, the Company recorded a gain of $45.4 million in interest and other income (expense), net within the consolidated statements of income and reported within the Corporate and Unallocated segment (the "Bang Transaction Gain"). During the year ended December 31, 2023, the Company incurred $16.1 million of acquisition costs related to the Bang Transaction. Acquisition costs are included in operating expenses within the consolidated statements of income. --- ## No Match in Current: The following table summarizes the final fair value allocations of the Bang Transaction: *This section from the 2024 filing does not have a high-confidence textual match in 2025. It may have been removed, merged, or substantially reworded.* ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Identifiable ​ ​ ​ ​ ​ Assets ​ ​ ​ ​ ​ Acquired and ​ ​ ​ ​ ​ (Liabilities) ​ ​ Consideration ​ Assumed Transferred Intangibles - trademarks (non-amortizing) ​ $ 209,000 ​ $ - Intangibles - customer relationships (amortizing) ​ 23,000 ​ - Property and equipment, net ​ 143,200 ​ - Inventory ​ 30,496 ​ - Right-of-use assets ​ 12,523 ​ - Operating lease liabilities ​ (12,523) ​ - Working capital (excluding inventory) ​ 2,871 ​ - Other ​ 200 ​ - Cash ​ - ​ 363,385 Bang Transaction Gain ​ - ​ 45,382 Total ​ $ 408,767 ​ $ 408,767 ​ 94 94 Table of ContentsMONSTER BEVERAGE CORPORATION AND SUBSIDIARIESNOTES TO CONSOLIDATED FINANCIAL STATEMENTS(Tabular Dollars in Thousands, Except Per Share Amounts)​The Company determined the fair values as follows:●Trademarks - relief-from-royalty method of the income approach●Customer relationships - multi-period excess earnings method of the income approach●Property and equipment - cost approach and market approach●Inventory - comparative sales method and replacement cost method●Bang Transaction Gain - residual of net assets acquired less cash consideration transferredThe book value of the working capital (excluding inventory) approximates fair value due to the short-term nature of the accounts.For tax purposes, the Bang Transaction was recorded as an asset purchase.In accordance with Regulation S-X, pro forma unaudited condensed financial information for the Bang Transaction has not been provided as the impact of the transaction on the Company's financial position, results of operations and liquidity was not material.CANarchy Craft Brewery Collective LLC​On February 17, 2022, the Company completed its acquisition of CANarchy Craft Brewery Collective LLC ("CANarchy"), a craft beer and hard seltzer company, for $329.5 million in cash (net of cash acquired), after certain working capital adjustments (the "CANarchy Transaction"). The Company accounted for the CANarchy Transaction in accordance with FASB ASC 805. Effective January 31, 2024, CANarchy began operating under the name Monster Brewing Company.​In accordance with Regulation S-X, pro forma unaudited condensed financial information for the CANarchy Transaction has not been provided as the impact of the transaction on the Company's financial position, results of operations and liquidity was not material.​3. REVENUE RECOGNITIONRevenues are accounted for in accordance with FASB 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 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 energy drinks primarily to bottlers/distributors. In some cases, the Company sells ready-to-drink packaged energy drinks directly to retail grocery and specialty chains, wholesalers, club stores, mass merchandisers, convenience 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 95 Table of ContentsMONSTER BEVERAGE CORPORATION AND SUBSIDIARIESNOTES TO CONSOLIDATED FINANCIAL STATEMENTS(Tabular Dollars in Thousands, Except Per Share Amounts)​ Table of Contents Table of Contents --- ## Modified: Our Business **Key changes:** - Reworded sentence: "Overview We develop, market, sell and distribute energy drink beverages and concentrates for energy drink beverages, primarily under the following brand names: ●Monster Energy® ●Monster Energy® ● Monster Energy® ●Monster Energy Ultra® ●Monster Energy Ultra® ● Monster Energy Ultra® ●Rehab Monster® ●Rehab Monster® ● Rehab Monster® ●Monster Energy® Nitro ●Monster Energy® Nitro ● Monster Energy® Nitro ●Java Monster® ●Java Monster® ● Java Monster® ●Punch Monster® ●Punch Monster® ● Punch Monster® ●Juice Monster® ●Juice Monster® ● Juice Monster® ●Reign Total Body Fuel® ●Reign Total Body Fuel® ● Reign Total Body Fuel® ●Reign Inferno® Thermogenic Fuel ●Reign Inferno® Thermogenic Fuel ● Reign Inferno® Thermogenic Fuel ●Reign Storm® ●Reign Storm® ● Reign Storm® ●Bang Energy® ●Bang Energy® ● Bang Energy® ●NOS® ●NOS® ● NOS® ●Full Throttle® ●Full Throttle® ● Full Throttle® ●Burn® ●Burn® ● Burn® ●Mother® ●Mother® ● Mother® ●Nalu® ●Nalu® ● Nalu® ●Ultra Energy® ●Ultra Energy® ● Ultra Energy® ●Play® and Power Play® (stylized) ●Play® and Power Play® (stylized) ● Play® and Power Play® (stylized) ●Relentless® ●Relentless® ● Relentless® ●BPM® ●BPM® ● BPM® ●BU® ●BU® ● BU® ●Samurai® ●Samurai® ● Samurai® ●Live+® ●Live+® ● Live+® ●Predator® ●Predator® ● Predator® ●Fury® ●Fury® ● 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® IPA, Dale's Pale Ale®, Wild Basin® Hard Seltzers, Dallas Blonde®, Deep EllumTM IPA, Perrin Brewing Company® Black Ale, Hop Rising® Double IPA, Wasatch® Apricot Hefeweizen, The BeastTM, Nasty Beast® Hard Tea and a host of other brands." - Reworded sentence: "Percentages of our gross billings to our various customer types for the years ended December 31, 2024, 2023 and 2022 are reflected below." - Reworded sentence: "​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ 2024 2023 2022 U.S." - Reworded sentence: "Taylor Distributing, and Admiral Beverage Corporation." - Reworded sentence: "These measurements will continue to be a key management focus in 2025 and beyond (See "Part II, Item 7 - Management's Discussion and Analysis of Financial Condition and Results of Operations - Results of Operations")." **Prior (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® ●Monster Energy® ● Monster Energy® ●Monster Energy Ultra® ●Monster Energy Ultra® ● Monster Energy Ultra® ●Monster Rehab® ●Monster Rehab® ● Monster Rehab® ●Monster Energy® Nitro ●Monster Energy® Nitro ● Monster Energy® Nitro ●Java Monster® ●Java Monster® ● Java Monster® ●Punch Monster® ●Punch Monster® ● Punch Monster® ●Juice Monster® ●Juice Monster® ● Juice Monster® ●Reign Total Body Fuel® ●Reign Total Body Fuel® ● Reign Total Body Fuel® ●Reign Inferno® Thermogenic Fuel ●Reign Inferno® Thermogenic Fuel ● Reign Inferno® Thermogenic Fuel ●Reign Storm® ●Reign Storm® ● Reign Storm® ●Bang Energy® ●Bang Energy® ● Bang Energy® ●NOS® ●NOS® ● NOS® ●Full Throttle® ●Full Throttle® ● Full Throttle® ●Burn® ●Burn® ● Burn® ●Mother® ●Mother® ● Mother® ●Nalu® ●Nalu® ● Nalu® ●Ultra Energy® ●Ultra Energy® ● Ultra Energy® ●Play® and Power Play® (stylized) ●Play® and Power Play® (stylized) ● Play® and Power Play® (stylized) ●Relentless® ●Relentless® ● Relentless® ●BPM® ●BPM® ● BPM® ●BU® ●BU® ● BU® ●Gladiator® ●Gladiator® ● Gladiator® ●Samurai® ●Samurai® ● Samurai® ●Live+® ●Live+® ● Live+® ●Predator® ●Predator® ● Predator® ●Fury® ●Fury® ● Fury® ​ We also develop, market, sell and distribute craft beers, FMBs and hard seltzers under a number of brands, including Jai Alai® IPA, Florida ManTM IPA, Dale's Pale Ale®, Wild Basin® Hard Seltzers, Dallas Blonde®, Deep EllumTM IPA, Perrin Brewing CompanyTM Black Ale, Hop Rising® Double IPA, Wasatch® Apricot Hefeweizen, The Beast Unleashed®, Nasty BeastTM 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. ​ Our net sales of $7.14 billion for the year ended December 31, 2023 represented record annual net sales. Net changes in foreign currency exchange rates had an unfavorable impact on net sales of approximately $146.7 million for the year ended December 31, 2023. 46 46 Table of Contents​The vast majority of our net sales are derived from our Monster Energy® Drinks segment. Our Monster Energy® Drinks segment represented 91.8% and 92.4% of our net sales for the years ended December 31, 2023 and 2022, respectively. Our Strategic Brands segment represented 5.3% and 5.6% of our net sales for the years ended December 31, 2023 and 2022, respectively. Our Alcohol Brands segment represented 2.6% and 1.6% of our net sales for the years ended December 31, 2023 and 2022, respectively. Our Other segment represented 0.3% and 0.4% of our net sales for the years ended December 31, 2023 and 2022, respectively.​Net changes in foreign currency exchange rates had an unfavorable impact on net sales in the Monster Energy® Drinks segment of approximately $124.3 million for the year ended December 31, 2023. Net changes in foreign currency exchange rates had an unfavorable impact on net sales in the Strategic Brands segment of approximately $22.4 million for the year ended December 31, 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 amounted to $2.71 billion and $2.36 billion for the years ended December 31, 2023 and 2022, respectively. Such sales were approximately 38% and 37% of net sales for the years ended December 31, 2023 and 2022, respectively. Net changes in foreign currency exchange rates had an unfavorable impact on net sales to customers outside of the United States of approximately $146.7 million for the year ended December 31, 2023. Net sales to customers outside the United States, on a foreign currency adjusted basis, increased 21.2% for the year ended December 31, 2023.Our non-alcohol customers are primarily full service beverage bottlers/distributors, retail grocery and specialty chains, wholesalers, club stores, mass merchandisers, convenience 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 years ended December 31, 2023, 2022 and 2021 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 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. ​ 2023 2022 2021U.S. full service bottlers/distributors 47%​48%​51%International full service bottlers/distributors 40%​39%​39%Club stores and e-commerce retailers 8%​9%​8%Retail grocery, direct convenience, specialty chains and wholesalers 2%​2%​1%Alcohol, value stores and other 3%​2%​1%​Our non-alcohol customers include Coca-Cola Canada Bottling Limited, Coca-Cola Consolidated, Inc., Coca-Cola Bottling Company United, Inc., Reyes Coca-Cola Bottling, 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.47 Table of Contents Table of Contents Table of Contents ​The vast majority of our net sales are derived from our Monster Energy® Drinks segment. Our Monster Energy® Drinks segment represented 91.8% and 92.4% of our net sales for the years ended December 31, 2023 and 2022, respectively. Our Strategic Brands segment represented 5.3% and 5.6% of our net sales for the years ended December 31, 2023 and 2022, respectively. Our Alcohol Brands segment represented 2.6% and 1.6% of our net sales for the years ended December 31, 2023 and 2022, respectively. Our Other segment represented 0.3% and 0.4% of our net sales for the years ended December 31, 2023 and 2022, respectively.​Net changes in foreign currency exchange rates had an unfavorable impact on net sales in the Monster Energy® Drinks segment of approximately $124.3 million for the year ended December 31, 2023. Net changes in foreign currency exchange rates had an unfavorable impact on net sales in the Strategic Brands segment of approximately $22.4 million for the year ended December 31, 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 amounted to $2.71 billion and $2.36 billion for the years ended December 31, 2023 and 2022, respectively. Such sales were approximately 38% and 37% of net sales for the years ended December 31, 2023 and 2022, respectively. Net changes in foreign currency exchange rates had an unfavorable impact on net sales to customers outside of the United States of approximately $146.7 million for the year ended December 31, 2023. Net sales to customers outside the United States, on a foreign currency adjusted basis, increased 21.2% for the year ended December 31, 2023.Our non-alcohol customers are primarily full service beverage bottlers/distributors, retail grocery and specialty chains, wholesalers, club stores, mass merchandisers, convenience 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 years ended December 31, 2023, 2022 and 2021 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 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. ​ 2023 2022 2021U.S. full service bottlers/distributors 47%​48%​51%International full service bottlers/distributors 40%​39%​39%Club stores and e-commerce retailers 8%​9%​8%Retail grocery, direct convenience, specialty chains and wholesalers 2%​2%​1%Alcohol, value stores and other 3%​2%​1%​Our non-alcohol customers include Coca-Cola Canada Bottling Limited, Coca-Cola Consolidated, Inc., Coca-Cola Bottling Company United, Inc., Reyes Coca-Cola Bottling, 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. ​ The vast majority of our net sales are derived from our Monster Energy® Drinks segment. Our Monster Energy® Drinks segment represented 91.8% and 92.4% of our net sales for the years ended December 31, 2023 and 2022, respectively. Our Strategic Brands segment represented 5.3% and 5.6% of our net sales for the years ended December 31, 2023 and 2022, respectively. Our Alcohol Brands segment represented 2.6% and 1.6% of our net sales for the years ended December 31, 2023 and 2022, respectively. Our Other segment represented 0.3% and 0.4% of our net sales for the years ended December 31, 2023 and 2022, respectively. ​ Net changes in foreign currency exchange rates had an unfavorable impact on net sales in the Monster Energy® Drinks segment of approximately $124.3 million for the year ended December 31, 2023. Net changes in foreign currency exchange rates had an unfavorable impact on net sales in the Strategic Brands segment of approximately $22.4 million for the year ended December 31, 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 amounted to $2.71 billion and $2.36 billion for the years ended December 31, 2023 and 2022, respectively. Such sales were approximately 38% and 37% of net sales for the years ended December 31, 2023 and 2022, respectively. Net changes in foreign currency exchange rates had an unfavorable impact on net sales to customers outside of the United States of approximately $146.7 million for the year ended December 31, 2023. Net sales to customers outside the United States, on a foreign currency adjusted basis, increased 21.2% for the year ended December 31, 2023. Our non-alcohol customers are primarily full service beverage bottlers/distributors, retail grocery and specialty chains, wholesalers, club stores, mass merchandisers, convenience 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 years ended December 31, 2023, 2022 and 2021 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 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. ​ 2023 2022 2021 U.S. full service bottlers/distributors 47% ​ 48% ​ 51% International full service bottlers/distributors 40% ​ 39% ​ 39% Club stores and e-commerce retailers 8% ​ 9% ​ 8% Retail grocery, direct convenience, specialty chains and wholesalers 2% ​ 2% ​ 1% Alcohol, value stores and other 3% ​ 2% ​ 1% ​ Our non-alcohol customers include Coca-Cola Canada Bottling Limited, Coca-Cola Consolidated, Inc., Coca-Cola Bottling Company United, Inc., Reyes Coca-Cola Bottling, 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. 47 47 Table of ContentsCoca-Cola Consolidated, Inc. accounted for approximately 10%, 11% and 12% of our net sales for the years ended December 31, 2023, 2022 and 2021, respectively.​Reyes Coca-Cola Bottling, LLC accounted for approximately 9%, 9% and 10% of our net sales for the years ended December 31, 2023, 2022 and 2021, respectively.​Coca-Cola Europacific Partners (formerly Coca-Cola European Partners) accounted for approximately 13%, 13% and 12% of our net sales for the years ended December 31, 2023, 2022 and 2021, respectively.We continue to incur expenditures in connection with the development and introduction of new products and flavors.Value Drivers of our BusinessWe believe that the key value drivers of our business include the following:●International Growth - The introduction, development and sustained profitability of our brands internationally remains a key value driver for our corporate growth. One or more of our products are distributed in approximately 158 countries and territories worldwide.●Profitable Growth - We believe "functional" value-added beverage brands supported by marketing and innovation and targeted to a diverse consumer base, drive profitable growth. We are focused on increasing the profit margins for our Monster Energy® Drinks segment, our Strategic Brands segment and our Alcohol Brands segment, and believe that tailored branding, packaging, pricing and distribution channel strategies help achieve profitable growth. We are implementing these strategies with a view to continuing profitable growth.●Cost Management - The principal focus of cost management will continue to be on mitigating increases and/or reducing input procurement and production costs on a per-case basis, including raw material costs and co-packing fees, as well as reducing freight costs by securing additional co-packing facilities strategically localized. Another key area of focus is to decrease promotional allowances, selling and general and administrative costs, including sponsorships, sampling, promotional and marketing expenses, as a percentage of net sales.●Efficient Capital Structure - Our capital structure is designed to optimize our working capital in order to finance expansion, both domestically and internationally. We believe that with our strong capital position, our ability to raise funds, if necessary, at a relatively low effective cost of borrowings, provides a competitive advantage. The reduction of days outstanding for accounts receivable and inventory days on hand will remain an area of focus.We believe that, subject to increases in the costs of certain raw materials being contained, these value drivers, when implemented and/or achieved in the United States and internationally, will result in: (1) improving or maintaining our product gross profit margins; (2) reducing our expenses as a percentage of net operating revenues; and (3) enhancing our cost of capital. The ultimate measure of success is and will be reflected in our current and future results of operations. Net sales, gross profit, operating income, net income and net income per share represent key measurements of the above value drivers. These measurements will continue to be a key management focus in 2024 and beyond (See "Part II, Item 7 - Management's Discussion and Analysis of Financial Condition and Results of Operations - Results of Operations"). As of December 31, 2023, the Company had working capital of $4.43 billion compared to $3.76 billion as of December 31, 2022. The increase in working capital was primarily the result of the increase in cash and cash equivalents, 48 Table of Contents Table of Contents Table of Contents Coca-Cola Consolidated, Inc. accounted for approximately 10%, 11% and 12% of our net sales for the years ended December 31, 2023, 2022 and 2021, respectively.​Reyes Coca-Cola Bottling, LLC accounted for approximately 9%, 9% and 10% of our net sales for the years ended December 31, 2023, 2022 and 2021, respectively.​Coca-Cola Europacific Partners (formerly Coca-Cola European Partners) accounted for approximately 13%, 13% and 12% of our net sales for the years ended December 31, 2023, 2022 and 2021, respectively.We continue to incur expenditures in connection with the development and introduction of new products and flavors.Value Drivers of our BusinessWe believe that the key value drivers of our business include the following:●International Growth - The introduction, development and sustained profitability of our brands internationally remains a key value driver for our corporate growth. One or more of our products are distributed in approximately 158 countries and territories worldwide.●Profitable Growth - We believe "functional" value-added beverage brands supported by marketing and innovation and targeted to a diverse consumer base, drive profitable growth. We are focused on increasing the profit margins for our Monster Energy® Drinks segment, our Strategic Brands segment and our Alcohol Brands segment, and believe that tailored branding, packaging, pricing and distribution channel strategies help achieve profitable growth. We are implementing these strategies with a view to continuing profitable growth.●Cost Management - The principal focus of cost management will continue to be on mitigating increases and/or reducing input procurement and production costs on a per-case basis, including raw material costs and co-packing fees, as well as reducing freight costs by securing additional co-packing facilities strategically localized. Another key area of focus is to decrease promotional allowances, selling and general and administrative costs, including sponsorships, sampling, promotional and marketing expenses, as a percentage of net sales.●Efficient Capital Structure - Our capital structure is designed to optimize our working capital in order to finance expansion, both domestically and internationally. We believe that with our strong capital position, our ability to raise funds, if necessary, at a relatively low effective cost of borrowings, provides a competitive advantage. The reduction of days outstanding for accounts receivable and inventory days on hand will remain an area of focus.We believe that, subject to increases in the costs of certain raw materials being contained, these value drivers, when implemented and/or achieved in the United States and internationally, will result in: (1) improving or maintaining our product gross profit margins; (2) reducing our expenses as a percentage of net operating revenues; and (3) enhancing our cost of capital. The ultimate measure of success is and will be reflected in our current and future results of operations. Net sales, gross profit, operating income, net income and net income per share represent key measurements of the above value drivers. These measurements will continue to be a key management focus in 2024 and beyond (See "Part II, Item 7 - Management's Discussion and Analysis of Financial Condition and Results of Operations - Results of Operations"). As of December 31, 2023, the Company had working capital of $4.43 billion compared to $3.76 billion as of December 31, 2022. The increase in working capital was primarily the result of the increase in cash and cash equivalents, Coca-Cola Consolidated, Inc. accounted for approximately 10%, 11% and 12% of our net sales for the years ended December 31, 2023, 2022 and 2021, respectively. ​ Reyes Coca-Cola Bottling, LLC accounted for approximately 9%, 9% and 10% of our net sales for the years ended December 31, 2023, 2022 and 2021, respectively. ​ Coca-Cola Europacific Partners (formerly Coca-Cola European Partners) accounted for approximately 13%, 13% and 12% of our net sales for the years ended December 31, 2023, 2022 and 2021, respectively. We continue to incur expenditures in connection with the development and introduction of new products and flavors. **Current (2025):** Overview We develop, market, sell and distribute energy drink beverages and concentrates for energy drink beverages, primarily under the following brand names: ●Monster Energy® ●Monster Energy® ● Monster Energy® ●Monster Energy Ultra® ●Monster Energy Ultra® ● Monster Energy Ultra® ●Rehab Monster® ●Rehab Monster® ● Rehab Monster® ●Monster Energy® Nitro ●Monster Energy® Nitro ● Monster Energy® Nitro ●Java Monster® ●Java Monster® ● Java Monster® ●Punch Monster® ●Punch Monster® ● Punch Monster® ●Juice Monster® ●Juice Monster® ● Juice Monster® ●Reign Total Body Fuel® ●Reign Total Body Fuel® ● Reign Total Body Fuel® ●Reign Inferno® Thermogenic Fuel ●Reign Inferno® Thermogenic Fuel ● Reign Inferno® Thermogenic Fuel ●Reign Storm® ●Reign Storm® ● Reign Storm® ●Bang Energy® ●Bang Energy® ● Bang Energy® ●NOS® ●NOS® ● NOS® ●Full Throttle® ●Full Throttle® ● Full Throttle® ●Burn® ●Burn® ● Burn® ●Mother® ●Mother® ● Mother® ●Nalu® ●Nalu® ● Nalu® ●Ultra Energy® ●Ultra Energy® ● Ultra Energy® ●Play® and Power Play® (stylized) ●Play® and Power Play® (stylized) ● Play® and Power Play® (stylized) ●Relentless® ●Relentless® ● Relentless® ●BPM® ●BPM® ● BPM® ●BU® ●BU® ● BU® ●Samurai® ●Samurai® ● Samurai® ●Live+® ●Live+® ● Live+® ●Predator® ●Predator® ● Predator® ●Fury® ●Fury® ● 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® IPA, Dale's Pale Ale®, Wild Basin® Hard Seltzers, Dallas Blonde®, Deep EllumTM IPA, Perrin Brewing Company® Black Ale, Hop Rising® Double IPA, Wasatch® Apricot Hefeweizen, The BeastTM, Nasty Beast® 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. Our net sales of $7.49 billion for the year ended December 31, 2024 represented record annual net sales. Net changes in foreign currency exchange rates had an unfavorable impact on net sales of approximately $247.1 million for the year ended December 31, 2024. Net sales on a foreign currency adjusted basis increased 8.4% for the year ended December 31, 2024. 42 42 Table of ContentsThe vast majority of our net sales are derived from our Monster Energy® Drinks segment. Our Monster Energy® Drinks segment represented 91.6% and 91.8% of our net sales for the years ended December 31, 2024 and 2023, respectively. Our Strategic Brands segment represented 5.8% and 5.3% of our net sales for the years ended December 31, 2024 and 2023, respectively. Our Alcohol Brands segment represented 2.3% and 2.6% of our net sales for the years ended December 31, 2024 and 2023, respectively. Our Other segment represented 0.3% of our net sales for both years ended December 31, 2024 and 2023. Net changes in foreign currency exchange rates had an unfavorable impact on net sales in the Monster Energy® Drinks segment of approximately $210.0 million for the year ended December 31, 2024. Net changes in foreign currency exchange rates had an unfavorable impact on net sales in the Strategic Brands segment of approximately $37.1 million for the year ended December 31, 2024.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 amounted to $2.96 billion and $2.71 billion for the years ended December 31, 2024 and 2023, respectively. Such sales were approximately 40% and 38% of net sales for the years ended December 31, 2024 and 2023, respectively. Net changes in foreign currency exchange rates had an unfavorable impact on net sales to customers outside of the United States of approximately $247.1 million for the year ended December 31, 2024. Net sales to customers outside the United States, on a foreign currency adjusted basis, increased 18.5% for the year ended December 31, 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, drug stores, 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 years ended December 31, 2024, 2023 and 2022 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 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.​​​​​​​​ 2024 2023 2022U.S. full service bottlers/distributors 46%​47%​48%International full service bottlers/distributors 41%​40%​39%Club stores and e-commerce retailers 8%​8%​9%Retail grocery, direct convenience, specialty chains and wholesalers 2%​2%​2%Alcohol, value stores and other 3%​3%​2%​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, 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 Admiral Beverage Corporation. 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 results of operations.Coca-Cola Europacific Partners accounted for approximately 14%, 13% and 13% of our net sales for the years ended December 31, 2024, 2023 and 2022, respectively. Coca-Cola Consolidated, Inc. accounted for approximately 10%, 10% and 11% of our net sales for the years ended December 31, 2024, 2023 and 2022, respectively.Reyes Holdings, LLC accounted for approximately 9% of our net sales for the years ended December 31, 2024, 2023 and 2022.43 Table of Contents Table of Contents Table of Contents The vast majority of our net sales are derived from our Monster Energy® Drinks segment. Our Monster Energy® Drinks segment represented 91.6% and 91.8% of our net sales for the years ended December 31, 2024 and 2023, respectively. Our Strategic Brands segment represented 5.8% and 5.3% of our net sales for the years ended December 31, 2024 and 2023, respectively. Our Alcohol Brands segment represented 2.3% and 2.6% of our net sales for the years ended December 31, 2024 and 2023, respectively. Our Other segment represented 0.3% of our net sales for both years ended December 31, 2024 and 2023. Net changes in foreign currency exchange rates had an unfavorable impact on net sales in the Monster Energy® Drinks segment of approximately $210.0 million for the year ended December 31, 2024. Net changes in foreign currency exchange rates had an unfavorable impact on net sales in the Strategic Brands segment of approximately $37.1 million for the year ended December 31, 2024.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 amounted to $2.96 billion and $2.71 billion for the years ended December 31, 2024 and 2023, respectively. Such sales were approximately 40% and 38% of net sales for the years ended December 31, 2024 and 2023, respectively. Net changes in foreign currency exchange rates had an unfavorable impact on net sales to customers outside of the United States of approximately $247.1 million for the year ended December 31, 2024. Net sales to customers outside the United States, on a foreign currency adjusted basis, increased 18.5% for the year ended December 31, 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, drug stores, 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 years ended December 31, 2024, 2023 and 2022 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 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.​​​​​​​​ 2024 2023 2022U.S. full service bottlers/distributors 46%​47%​48%International full service bottlers/distributors 41%​40%​39%Club stores and e-commerce retailers 8%​8%​9%Retail grocery, direct convenience, specialty chains and wholesalers 2%​2%​2%Alcohol, value stores and other 3%​3%​2%​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, 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 Admiral Beverage Corporation. 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 results of operations.Coca-Cola Europacific Partners accounted for approximately 14%, 13% and 13% of our net sales for the years ended December 31, 2024, 2023 and 2022, respectively. Coca-Cola Consolidated, Inc. accounted for approximately 10%, 10% and 11% of our net sales for the years ended December 31, 2024, 2023 and 2022, respectively.Reyes Holdings, LLC accounted for approximately 9% of our net sales for the years ended December 31, 2024, 2023 and 2022. The vast majority of our net sales are derived from our Monster Energy® Drinks segment. Our Monster Energy® Drinks segment represented 91.6% and 91.8% of our net sales for the years ended December 31, 2024 and 2023, respectively. Our Strategic Brands segment represented 5.8% and 5.3% of our net sales for the years ended December 31, 2024 and 2023, respectively. Our Alcohol Brands segment represented 2.3% and 2.6% of our net sales for the years ended December 31, 2024 and 2023, respectively. Our Other segment represented 0.3% of our net sales for both years ended December 31, 2024 and 2023. Net changes in foreign currency exchange rates had an unfavorable impact on net sales in the Monster Energy® Drinks segment of approximately $210.0 million for the year ended December 31, 2024. Net changes in foreign currency exchange rates had an unfavorable impact on net sales in the Strategic Brands segment of approximately $37.1 million for the year ended December 31, 2024.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 amounted to $2.96 billion and $2.71 billion for the years ended December 31, 2024 and 2023, respectively. Such sales were approximately 40% and 38% of net sales for the years ended December 31, 2024 and 2023, respectively. Net changes in foreign currency exchange rates had an unfavorable impact on net sales to customers outside of the United States of approximately $247.1 million for the year ended December 31, 2024. Net sales to customers outside the United States, on a foreign currency adjusted basis, increased 18.5% for the year ended December 31, 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, drug stores, 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 years ended December 31, 2024, 2023 and 2022 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 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.​​​​​​​​ 2024 2023 2022U.S. full service bottlers/distributors 46%​47%​48%International full service bottlers/distributors 41%​40%​39%Club stores and e-commerce retailers 8%​8%​9%Retail grocery, direct convenience, specialty chains and wholesalers 2%​2%​2%Alcohol, value stores and other 3%​3%​2%​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, 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 Admiral Beverage Corporation. 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 results of operations.Coca-Cola Europacific Partners accounted for approximately 14%, 13% and 13% of our net sales for the years ended December 31, 2024, 2023 and 2022, respectively. Coca-Cola Consolidated, Inc. accounted for approximately 10%, 10% and 11% of our net sales for the years ended December 31, 2024, 2023 and 2022, respectively.Reyes Holdings, LLC accounted for approximately 9% of our net sales for the years ended December 31, 2024, 2023 and 2022. The vast majority of our net sales are derived from our Monster Energy® Drinks segment. Our Monster Energy® Drinks segment represented 91.6% and 91.8% of our net sales for the years ended December 31, 2024 and 2023, respectively. Our Strategic Brands segment represented 5.8% and 5.3% of our net sales for the years ended December 31, 2024 and 2023, respectively. Our Alcohol Brands segment represented 2.3% and 2.6% of our net sales for the years ended December 31, 2024 and 2023, respectively. Our Other segment represented 0.3% of our net sales for both years ended December 31, 2024 and 2023. Net changes in foreign currency exchange rates had an unfavorable impact on net sales in the Monster Energy® Drinks segment of approximately $210.0 million for the year ended December 31, 2024. Net changes in foreign currency exchange rates had an unfavorable impact on net sales in the Strategic Brands segment of approximately $37.1 million for the year ended December 31, 2024. 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 amounted to $2.96 billion and $2.71 billion for the years ended December 31, 2024 and 2023, respectively. Such sales were approximately 40% and 38% of net sales for the years ended December 31, 2024 and 2023, respectively. Net changes in foreign currency exchange rates had an unfavorable impact on net sales to customers outside of the United States of approximately $247.1 million for the year ended December 31, 2024. Net sales to customers outside the United States, on a foreign currency adjusted basis, increased 18.5% for the year ended December 31, 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, drug stores, 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 years ended December 31, 2024, 2023 and 2022 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 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. ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ 2024 2023 2022 U.S. full service bottlers/distributors 46% ​ 47% ​ 48% International full service bottlers/distributors 41% ​ 40% ​ 39% Club stores and e-commerce retailers 8% ​ 8% ​ 9% Retail grocery, direct convenience, specialty chains and wholesalers 2% ​ 2% ​ 2% Alcohol, value stores and other 3% ​ 3% ​ 2% ​ 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, 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 Admiral Beverage Corporation. 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 results of operations. Coca-Cola Europacific Partners accounted for approximately 14%, 13% and 13% of our net sales for the years ended December 31, 2024, 2023 and 2022, respectively. Coca-Cola Consolidated, Inc. accounted for approximately 10%, 10% and 11% of our net sales for the years ended December 31, 2024, 2023 and 2022, respectively. Reyes Holdings, LLC accounted for approximately 9% of our net sales for the years ended December 31, 2024, 2023 and 2022. 43 43 Table of ContentsWe continue to incur expenditures in connection with the development and introduction of new products and flavors.Value Drivers of our BusinessWe believe that the key value drivers of our business include the following:●International Growth - The introduction, development and sustained profitability of our brands internationally remains a key value driver for our corporate growth. One or more of our products are distributed in approximately 159 countries and territories worldwide.●Profitable Growth - We believe "functional" value-added beverage brands supported by marketing and innovation and targeted to a diverse consumer base, drive profitable growth. We are focused on increasing the profit margins for our Monster Energy® Drinks segment, our Strategic Brands segment and our Alcohol Brands segment, and believe that tailored branding, packaging, pricing and distribution channel strategies help achieve profitable growth. We are implementing these strategies with a view to continuing profitable growth.●Cost Management - The principal focus of cost management will continue to be on mitigating increases and/or reducing input procurement and production costs on a per-case basis, including raw material costs and co-packing fees, as well as reducing freight costs by securing additional co-packing facilities strategically localized. Another key area of focus is to decrease promotional allowances, selling and general and administrative costs, including sponsorships, sampling, promotional and marketing expenses, as a percentage of net sales.●Efficient Capital Structure - Our capital structure is designed to optimize our working capital in order to finance expansion, both domestically and internationally. We believe that with our strong capital position, our ability to raise funds, if necessary, at a relatively low effective cost of borrowings, provides a competitive advantage. The reduction of days outstanding for accounts receivable and inventory days on hand will remain an area of focus.We believe that, subject to increases in the costs of certain raw materials being contained, these value drivers, when implemented and/or achieved in the United States and internationally, will result in: (1) improving or maintaining our product gross profit margins; (2) reducing our expenses as a percentage of net operating revenues; and (3) enhancing our cost of capital. The ultimate measure of success is and will be reflected in our current and future results of operations. Net sales, gross profit, operating income, net income and net income per share represent key measurements of the above value drivers. These measurements will continue to be a key management focus in 2025 and beyond (See "Part II, Item 7 - Management's Discussion and Analysis of Financial Condition and Results of Operations - Results of Operations"). As of December 31, 2024, the Company had working capital of $2.54 billion compared to $4.43 billion as of December 31, 2023. The decrease in working capital was primarily the result of the decrease in cash and cash equivalents and short-term investments related to treasury stock repurchases for the year ended December 31, 2024. For the year ended December 31, 2024, our net cash provided by operating activities was approximately $1.93 billion as compared to $1.72 billion for the year ended December 31, 2023. Principal uses of cash flows in 2024 were purchases of treasury stock and purchases of real property, property and equipment. These principal uses of cash flows are expected to be and remain our principal recurring use of cash and working capital funds in the future (See "Part II, Item 7 - Management's Discussion and Analysis of Financial Condition and Results of Operations - Liquidity and Capital Resources").Opportunities, Challenges and RisksLooking forward, our management has identified certain challenges and risks for the beverage industry and the Company, including our significant commercial relationship with TCCC and TCCC's status as a significant stockholder of the Company, in each case as described above under "Part I, Item 1A - Risk Factors." 44 Table of Contents Table of Contents Table of Contents We continue to incur expenditures in connection with the development and introduction of new products and flavors.Value Drivers of our BusinessWe believe that the key value drivers of our business include the following:●International Growth - The introduction, development and sustained profitability of our brands internationally remains a key value driver for our corporate growth. One or more of our products are distributed in approximately 159 countries and territories worldwide.●Profitable Growth - We believe "functional" value-added beverage brands supported by marketing and innovation and targeted to a diverse consumer base, drive profitable growth. We are focused on increasing the profit margins for our Monster Energy® Drinks segment, our Strategic Brands segment and our Alcohol Brands segment, and believe that tailored branding, packaging, pricing and distribution channel strategies help achieve profitable growth. We are implementing these strategies with a view to continuing profitable growth.●Cost Management - The principal focus of cost management will continue to be on mitigating increases and/or reducing input procurement and production costs on a per-case basis, including raw material costs and co-packing fees, as well as reducing freight costs by securing additional co-packing facilities strategically localized. Another key area of focus is to decrease promotional allowances, selling and general and administrative costs, including sponsorships, sampling, promotional and marketing expenses, as a percentage of net sales.●Efficient Capital Structure - Our capital structure is designed to optimize our working capital in order to finance expansion, both domestically and internationally. We believe that with our strong capital position, our ability to raise funds, if necessary, at a relatively low effective cost of borrowings, provides a competitive advantage. The reduction of days outstanding for accounts receivable and inventory days on hand will remain an area of focus.We believe that, subject to increases in the costs of certain raw materials being contained, these value drivers, when implemented and/or achieved in the United States and internationally, will result in: (1) improving or maintaining our product gross profit margins; (2) reducing our expenses as a percentage of net operating revenues; and (3) enhancing our cost of capital. The ultimate measure of success is and will be reflected in our current and future results of operations. Net sales, gross profit, operating income, net income and net income per share represent key measurements of the above value drivers. These measurements will continue to be a key management focus in 2025 and beyond (See "Part II, Item 7 - Management's Discussion and Analysis of Financial Condition and Results of Operations - Results of Operations"). As of December 31, 2024, the Company had working capital of $2.54 billion compared to $4.43 billion as of December 31, 2023. The decrease in working capital was primarily the result of the decrease in cash and cash equivalents and short-term investments related to treasury stock repurchases for the year ended December 31, 2024. For the year ended December 31, 2024, our net cash provided by operating activities was approximately $1.93 billion as compared to $1.72 billion for the year ended December 31, 2023. Principal uses of cash flows in 2024 were purchases of treasury stock and purchases of real property, property and equipment. These principal uses of cash flows are expected to be and remain our principal recurring use of cash and working capital funds in the future (See "Part II, Item 7 - Management's Discussion and Analysis of Financial Condition and Results of Operations - Liquidity and Capital Resources").Opportunities, Challenges and RisksLooking forward, our management has identified certain challenges and risks for the beverage industry and the Company, including our significant commercial relationship with TCCC and TCCC's status as a significant stockholder of the Company, in each case as described above under "Part I, Item 1A - Risk Factors." We continue to incur expenditures in connection with the development and introduction of new products and flavors.Value Drivers of our BusinessWe believe that the key value drivers of our business include the following:●International Growth - The introduction, development and sustained profitability of our brands internationally remains a key value driver for our corporate growth. One or more of our products are distributed in approximately 159 countries and territories worldwide.●Profitable Growth - We believe "functional" value-added beverage brands supported by marketing and innovation and targeted to a diverse consumer base, drive profitable growth. We are focused on increasing the profit margins for our Monster Energy® Drinks segment, our Strategic Brands segment and our Alcohol Brands segment, and believe that tailored branding, packaging, pricing and distribution channel strategies help achieve profitable growth. We are implementing these strategies with a view to continuing profitable growth.●Cost Management - The principal focus of cost management will continue to be on mitigating increases and/or reducing input procurement and production costs on a per-case basis, including raw material costs and co-packing fees, as well as reducing freight costs by securing additional co-packing facilities strategically localized. Another key area of focus is to decrease promotional allowances, selling and general and administrative costs, including sponsorships, sampling, promotional and marketing expenses, as a percentage of net sales.●Efficient Capital Structure - Our capital structure is designed to optimize our working capital in order to finance expansion, both domestically and internationally. We believe that with our strong capital position, our ability to raise funds, if necessary, at a relatively low effective cost of borrowings, provides a competitive advantage. The reduction of days outstanding for accounts receivable and inventory days on hand will remain an area of focus.We believe that, subject to increases in the costs of certain raw materials being contained, these value drivers, when implemented and/or achieved in the United States and internationally, will result in: (1) improving or maintaining our product gross profit margins; (2) reducing our expenses as a percentage of net operating revenues; and (3) enhancing our cost of capital. The ultimate measure of success is and will be reflected in our current and future results of operations. Net sales, gross profit, operating income, net income and net income per share represent key measurements of the above value drivers. These measurements will continue to be a key management focus in 2025 and beyond (See "Part II, Item 7 - Management's Discussion and Analysis of Financial Condition and Results of Operations - Results of Operations"). As of December 31, 2024, the Company had working capital of $2.54 billion compared to $4.43 billion as of December 31, 2023. The decrease in working capital was primarily the result of the decrease in cash and cash equivalents and short-term investments related to treasury stock repurchases for the year ended December 31, 2024. For the year ended December 31, 2024, our net cash provided by operating activities was approximately $1.93 billion as compared to $1.72 billion for the year ended December 31, 2023. Principal uses of cash flows in 2024 were purchases of treasury stock and purchases of real property, property and equipment. These principal uses of cash flows are expected to be and remain our principal recurring use of cash and working capital funds in the future (See "Part II, Item 7 - Management's Discussion and Analysis of Financial Condition and Results of Operations - Liquidity and Capital Resources").Opportunities, Challenges and RisksLooking forward, our management has identified certain challenges and risks for the beverage industry and the Company, including our significant commercial relationship with TCCC and TCCC's status as a significant stockholder of the Company, in each case as described above under "Part I, Item 1A - Risk Factors." We continue to incur expenditures in connection with the development and introduction of new products and flavors. --- ## Modified: Accrued Promotional Allowances **Key changes:** - Reworded sentence: "Description of the Matter ​ The Company recorded $267.7 million in accrued promotional allowances as of December 31, 2024." - Reworded sentence: "We also tested controls over management's review of the amount of the recorded promotional allowances and tested management's controls to validate the completeness and accuracy of data used in management's estimate." - Reworded sentence: "​ ​ ​ ​ ​ ​ ​ ​ ​ /s/ Ernst & Young LLP ​ ​ We have served as the Company's auditor since 2023." - Reworded sentence: "federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.We conducted our audit in accordance with the standards of the PCAOB." - Reworded sentence: "Our audit included performing procedures to assess the risks of material misstatement of the financial statements, whether due to error or fraud, and performing procedures that respond to those risks." **Prior (2024):** Description of the Matter ​ The Company recorded $269.1 million in accrued promotional allowances as of December 31, 2023. As described in Notes 1 and 3 of the consolidated financial statements, the Company's promotional allowances are calculated based on various programs and agreements with its bottlers/distributors and retail customers, and accruals are established at the time of the initial product sale. These accruals are based on agreed-upon terms as well as the Company's historical experience with similar programs. Promotional allowances for the Company's energy drink products primarily include consideration given to its non-alcohol bottlers/distributors or retail customers. The promotional expenditures are recorded as a reduction to net sales in the period the underlying sale occurs. Auditing the accrued promotional allowances was challenging due to the amount of data utilized to compute the accrual as a result of the number of bottlers/distributors and retail customers. How We Addressed the Matter in Our Audit ​ We obtained an understanding, evaluated the design, and tested the operating effectiveness of management's controls over promotional allowances. We also tested controls over management's review of the amount of the recorded promotional allowances and tested management's controls to validate the completeness and accuracy of data used in management's estimate. Our substantive audit procedures included, among others, testing the data underlying the promotional allowances and testing the completeness and accuracy of the accrued promotional allowances. We evaluated the completeness of the accrual by selecting accrued promotional allowances recorded, sending confirmation requests to the bottlers/distributors and retail customers and testing a sample of payments made subsequent to year end. We performed analytical procedures considering historical relationships between the promotional allowances recorded to sales. We additionally performed detail testing over the current year promotional expenditures and performed testing over management's lookback analysis comparing the previous year-end accrued promotional allowances amounts to actual payments. Lastly, we performed inquiries of the Company's sales and marketing personnel in order to corroborate our understanding of new and existing promotional programs that could impact the amounts recorded. ​ ​ ​ ​ ​ ​ ​ ​ ​ /s/ Ernst & Young LLP ​ ​ We have served as the Company's auditor since 2023. ​ ​ ​ Irvine, California ​ ​ ​ February 29, 2024 ​ ​ ​ 79 79 Table of ContentsREPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM​To the Board of Directors and Stockholders ofMonster Beverage CorporationCorona, California​Opinion on the Financial StatementsWe have audited, before the effects of the adjustments to retrospectively apply the stock split discussed in Note 1 to the consolidated financial statements, the consolidated balance sheet of Monster Beverage Corporation and subsidiaries (the "Company") as of December 31, 2022, the related consolidated statements of income, comprehensive income, stockholders' equity, and cash flows, for the years ended December 31, 2022 and 2021, and the related notes and the schedule listed in the Index at Item 15(a) (collectively referred to as the "financial statements") (the 2022 and 2021 financial statements before the effects of the retrospective adjustments discussed in Note 1 to the financial statements are not presented herein). In our opinion, the 2022 and 2021 financial statements, before the effects of the adjustments to retrospectively apply the stock split discussed in Note 1 to the financial statements, present fairly, in all material respects, the financial position of the Company as of December 31, 2022, and the results of its operations and its cash flows for the years ended December 31, 2022 and 2021, in conformity with accounting principles generally accepted in the United States of America.We were not engaged to audit, review, or apply any procedures to the adjustments to retrospectively apply the stock split discussed in Note 1 to the financial statements, and accordingly, we do not express an opinion or any other form of assurance about whether such retrospective adjustments are appropriate and have been properly applied. Those retrospective adjustments were audited by other auditors.Basis for OpinionThese financial statements are the responsibility of the Company's management. Our responsibility is to express an opinion on the Company's financial statements based on our audits. We are a public accounting firm registered with the PCAOB and are required to be independent with respect to the Company in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.We conducted our audits in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement, whether due to error or fraud. Our audits included performing procedures to assess the risks of material misstatement of the financial statements, whether due to error or fraud, and performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements. Our audits also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the financial statements. We believe that our audits provide a reasonable basis for our opinion./s/ DELOITTE & TOUCHE LLPCosta Mesa, CaliforniaMarch 1, 2023We began serving as the Company's auditor in 1991. In 2023, we became the predecessor auditor.​80 Table of Contents Table of Contents Table of Contents REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM​To the Board of Directors and Stockholders ofMonster Beverage CorporationCorona, California​Opinion on the Financial StatementsWe have audited, before the effects of the adjustments to retrospectively apply the stock split discussed in Note 1 to the consolidated financial statements, the consolidated balance sheet of Monster Beverage Corporation and subsidiaries (the "Company") as of December 31, 2022, the related consolidated statements of income, comprehensive income, stockholders' equity, and cash flows, for the years ended December 31, 2022 and 2021, and the related notes and the schedule listed in the Index at Item 15(a) (collectively referred to as the "financial statements") (the 2022 and 2021 financial statements before the effects of the retrospective adjustments discussed in Note 1 to the financial statements are not presented herein). In our opinion, the 2022 and 2021 financial statements, before the effects of the adjustments to retrospectively apply the stock split discussed in Note 1 to the financial statements, present fairly, in all material respects, the financial position of the Company as of December 31, 2022, and the results of its operations and its cash flows for the years ended December 31, 2022 and 2021, in conformity with accounting principles generally accepted in the United States of America.We were not engaged to audit, review, or apply any procedures to the adjustments to retrospectively apply the stock split discussed in Note 1 to the financial statements, and accordingly, we do not express an opinion or any other form of assurance about whether such retrospective adjustments are appropriate and have been properly applied. Those retrospective adjustments were audited by other auditors.Basis for OpinionThese financial statements are the responsibility of the Company's management. Our responsibility is to express an opinion on the Company's financial statements based on our audits. We are a public accounting firm registered with the PCAOB and are required to be independent with respect to the Company in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.We conducted our audits in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement, whether due to error or fraud. Our audits included performing procedures to assess the risks of material misstatement of the financial statements, whether due to error or fraud, and performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements. Our audits also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the financial statements. We believe that our audits provide a reasonable basis for our opinion./s/ DELOITTE & TOUCHE LLPCosta Mesa, CaliforniaMarch 1, 2023We began serving as the Company's auditor in 1991. In 2023, we became the predecessor auditor.​ **Current (2025):** Description of the Matter ​ The Company recorded $267.7 million in accrued promotional allowances as of December 31, 2024. As described in Notes 1 and 3 of the consolidated financial statements, the Company's promotional allowances are calculated based on various programs and agreements with its bottlers/distributors and retail customers, and accruals are established at the time of the initial product sale. These accruals are based on agreed-upon terms as well as the Company's historical experience with similar programs. Promotional allowances for the Company's energy drink products primarily include consideration given to its non-alcohol bottlers/distributors or retail customers. The promotional expenditures are recorded as a reduction to net sales in the period the underlying sale occurs. Auditing the accrued promotional allowances was challenging due to the amount of data utilized to compute the accrual as a result of the number of bottlers/distributors and retail customers. How We Addressed the Matter in Our Audit ​ We obtained an understanding, evaluated the design, and tested the operating effectiveness of management's controls over promotional allowances. We also tested controls over management's review of the amount of the recorded promotional allowances and tested management's controls to validate the completeness and accuracy of data used in management's estimate. Our substantive audit procedures included, among others, testing the data underlying the promotional allowances and testing the completeness and accuracy of the accrued promotional allowances. We evaluated the completeness of the accrual by selecting accrued promotional allowances recorded, sending confirmation requests to the bottlers/distributors and retail customers and testing a sample of payments made subsequent to year end. We performed analytical procedures considering historical relationships between the promotional allowances recorded to sales. We additionally performed detail testing over the current year promotional expenditures and performed testing over management's lookback analysis comparing the previous year-end accrued promotional allowances amounts to actual payments. Lastly, we performed inquiries of the Company's sales and marketing personnel in order to corroborate our understanding of new and existing promotional programs that could impact the amounts recorded. ​ ​ ​ ​ ​ ​ ​ ​ ​ /s/ Ernst & Young LLP ​ ​ We have served as the Company's auditor since 2023. ​ ​ ​ Irvine, California ​ February 28, 2025 ​ ​ ​ 74 74 Table of ContentsREPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM​To the Board of Directors and Stockholders ofMonster Beverage CorporationCorona, California​Opinion on the Financial StatementsWe have audited, before the effects of the adjustments to retrospectively apply the stock split and segment disclosures required by Accounting Standards Update 2023-07, Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosures (ASU 2023-07), as discussed in Note 1 to the consolidated financial statements, the consolidated statements of income, comprehensive income, stockholders' equity, and cash flows of Monster Beverage Corporation and subsidiaries (the "Company") for the year ended December 31, 2022, and the related notes and the schedule listed in the Index at Item 15(a) (collectively referred to as the "financial statements") (the 2022 financial statements before the effects of the retrospective adjustments discussed in Note 1 to the financial statements are not presented herein). In our opinion, the 2022 financial statements, before the effects of the adjustments to retrospectively apply the stock split and segment disclosures required by ASU 2023-07 discussed in Note 1 to the financial statements, present fairly, in all material respects, the results of the Company's operations and its cash flows for the year ended December 31, 2022, in conformity with accounting principles generally accepted in the United States of America.We were not engaged to audit, review, or apply any procedures to the adjustments to retrospectively apply the stock split or retrospective adjustments to segment disclosures discussed in Note 1 to the financial statements, and accordingly, we do not express an opinion or any other form of assurance about whether such retrospective adjustments are appropriate and have been properly applied. Those retrospective adjustments were audited by the successor auditor.Basis for OpinionThese financial statements are the responsibility of the Company's management. Our responsibility is to express an opinion on the Company's financial statements based on our audit. We are a public accounting firm registered with the PCAOB and are required to be independent with respect to the Company in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.We conducted our audit in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement, whether due to error or fraud. Our audit included performing procedures to assess the risks of material misstatement of the financial statements, whether due to error or fraud, and performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements. Our audit also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the financial statements. We believe that our audit provides a reasonable basis for our opinion./s/ DELOITTE & TOUCHE LLPCosta Mesa, CaliforniaMarch 1, 2023We began serving as the Company's auditor in 1991. In 2023, we became the predecessor auditor.​75 Table of Contents Table of Contents Table of Contents REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM​To the Board of Directors and Stockholders ofMonster Beverage CorporationCorona, California​Opinion on the Financial StatementsWe have audited, before the effects of the adjustments to retrospectively apply the stock split and segment disclosures required by Accounting Standards Update 2023-07, Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosures (ASU 2023-07), as discussed in Note 1 to the consolidated financial statements, the consolidated statements of income, comprehensive income, stockholders' equity, and cash flows of Monster Beverage Corporation and subsidiaries (the "Company") for the year ended December 31, 2022, and the related notes and the schedule listed in the Index at Item 15(a) (collectively referred to as the "financial statements") (the 2022 financial statements before the effects of the retrospective adjustments discussed in Note 1 to the financial statements are not presented herein). In our opinion, the 2022 financial statements, before the effects of the adjustments to retrospectively apply the stock split and segment disclosures required by ASU 2023-07 discussed in Note 1 to the financial statements, present fairly, in all material respects, the results of the Company's operations and its cash flows for the year ended December 31, 2022, in conformity with accounting principles generally accepted in the United States of America.We were not engaged to audit, review, or apply any procedures to the adjustments to retrospectively apply the stock split or retrospective adjustments to segment disclosures discussed in Note 1 to the financial statements, and accordingly, we do not express an opinion or any other form of assurance about whether such retrospective adjustments are appropriate and have been properly applied. Those retrospective adjustments were audited by the successor auditor.Basis for OpinionThese financial statements are the responsibility of the Company's management. Our responsibility is to express an opinion on the Company's financial statements based on our audit. We are a public accounting firm registered with the PCAOB and are required to be independent with respect to the Company in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.We conducted our audit in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement, whether due to error or fraud. Our audit included performing procedures to assess the risks of material misstatement of the financial statements, whether due to error or fraud, and performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements. Our audit also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the financial statements. We believe that our audit provides a reasonable basis for our opinion./s/ DELOITTE & TOUCHE LLPCosta Mesa, CaliforniaMarch 1, 2023We began serving as the Company's auditor in 1991. In 2023, we became the predecessor auditor.​ REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM​To the Board of Directors and Stockholders ofMonster Beverage CorporationCorona, California​Opinion on the Financial StatementsWe have audited, before the effects of the adjustments to retrospectively apply the stock split and segment disclosures required by Accounting Standards Update 2023-07, Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosures (ASU 2023-07), as discussed in Note 1 to the consolidated financial statements, the consolidated statements of income, comprehensive income, stockholders' equity, and cash flows of Monster Beverage Corporation and subsidiaries (the "Company") for the year ended December 31, 2022, and the related notes and the schedule listed in the Index at Item 15(a) (collectively referred to as the "financial statements") (the 2022 financial statements before the effects of the retrospective adjustments discussed in Note 1 to the financial statements are not presented herein). In our opinion, the 2022 financial statements, before the effects of the adjustments to retrospectively apply the stock split and segment disclosures required by ASU 2023-07 discussed in Note 1 to the financial statements, present fairly, in all material respects, the results of the Company's operations and its cash flows for the year ended December 31, 2022, in conformity with accounting principles generally accepted in the United States of America.We were not engaged to audit, review, or apply any procedures to the adjustments to retrospectively apply the stock split or retrospective adjustments to segment disclosures discussed in Note 1 to the financial statements, and accordingly, we do not express an opinion or any other form of assurance about whether such retrospective adjustments are appropriate and have been properly applied. Those retrospective adjustments were audited by the successor auditor.Basis for OpinionThese financial statements are the responsibility of the Company's management. Our responsibility is to express an opinion on the Company's financial statements based on our audit. We are a public accounting firm registered with the PCAOB and are required to be independent with respect to the Company in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.We conducted our audit in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement, whether due to error or fraud. Our audit included performing procedures to assess the risks of material misstatement of the financial statements, whether due to error or fraud, and performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements. Our audit also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the financial statements. We believe that our audit provides a reasonable basis for our opinion./s/ DELOITTE & TOUCHE LLPCosta Mesa, CaliforniaMarch 1, 2023We began serving as the Company's auditor in 1991. In 2023, we became the predecessor auditor.​ --- ## Modified: 5.INVESTMENTS **Key changes:** - Reworded sentence: "The Company held no short-term or long-term investments at December 31, 2024." **Prior (2024):** The following table summarizes the Company's investments at: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Continuous ​ Continuous ​ ​ ​ ​ ​ Gross ​ Gross ​ ​ ​ ​ Unrealized ​ Unrealized ​ ​ ​ ​ ​ Unrealized ​ Unrealized ​ ​ ​ ​ Loss Position ​ Loss Position ​ ​ Amortized ​ Holding ​ Holding ​ Fair ​ less than 12 ​ greater than December 31, 2023 Cost Gains Losses Value Months 12 Months **Current (2025):** 5. The Company held no short-term or long-term investments at December 31, 2024. The following table summarizes the Company's investments at December 31, 2023. ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Continuous ​ Continuous ​ ​ ​ ​ ​ Gross ​ Gross ​ ​ ​ ​ Unrealized ​ Unrealized ​ ​ ​ ​ ​ Unrealized ​ Unrealized ​ ​ ​ ​ Loss Position ​ Loss Position ​ ​ Amortized ​ Holding ​ Holding ​ Fair ​ less than 12 ​ greater than December 31, 2023 Cost Gains Losses Value Months 12 Months --- ## Modified: Gross Billings** **Key changes:** - Reworded sentence: "Gross billings were $8.74 billion for the year ended December 31, 2024, an increase of approximately $506.0 million, or 6.1% higher than gross billings of $8.23 billion for the year ended December 31, 2023." - Reworded sentence: "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: ​​​​​​​​​​​​​​​​ ​ ​ ​ Percentage Percentage​(In thousands)​​​​​​​​​ Change​Change​​ 2024 2023 2022 24 vs." - Reworded sentence: "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: ​​​​​​​​​​​​​​​​ ​ ​ ​ Percentage Percentage​(In thousands)​​​​​​​​​ Change​Change​​ 2024 2023 2022 24 vs." - Reworded sentence: "The following table reconciles the non-GAAP financial measure of gross billings with the most directly comparable GAAP financial measure of net sales: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Percentage Percentage ​ (In thousands) ​ ​ ​ ​ ​ ​ ​ ​ ​ Change ​ Change ​ ​ 2024 2023 2022 24 vs." - Reworded sentence: "The primary drivers of our promotional and other allowance activities for our energy drink products for the years ended December 31, 2024 and 2023 were (i) to increase sales volume and trial, (ii) to address market conditions, and (iii) to secure shelf and display space at retail." **Prior (2024):** Gross billings were $8.23 billion for the year ended December 31, 2023, an increase of approximately $968.1 million, or 13.3% higher than gross billings of $7.26 billion for the year ended December 31, 2022. Net changes in foreign currency exchange rates had an unfavorable impact on gross billings of approximately $149.8 million for the year ended December 31, 2023. ​ Gross billings for the Monster Energy® Drinks segment were $7.59 billion for the year ended December 31, 2023, an increase of approximately $855.4 million, or 12.7% higher than gross billings of $6.74 billion for the year ended December 31, 2022. 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 price increases in certain markets. Net changes in foreign currency exchange rates had an unfavorable impact on 54 54 Table of Contentsgross billings for the Monster Energy® Drinks segment of approximately $127.8 million for the year ended December 31, 2023.​Gross billings for the Strategic Brands segment were $425.3 million for the year ended December 31, 2023, an increase of $26.6 million, or 6.7% higher than gross billings of $398.7 million for the year ended December 31, 2022. Net changes in foreign currency exchange rates had an unfavorable impact on gross billings in the Strategic Brands segment of approximately $22.0 million for the year ended December 31, 2023.​Gross billings for the Alcohol Brands segment were $188.6 million for the year ended December 31, 2023, an increase of $85.6 million, or 83.0% higher than gross billings of $103.0 million for the year ended December 31, 2022 (effectively from February 17, 2022 to December 31, 2022).​Gross billings for the Other segment were $23.5 million for the year ended December 31, 2023, an increase of $0.6 million, or 2.6% higher than gross billings of $22.9 million for the year ended December 31, 2022.​Promotional allowances, commissions and other expenses, as described in the footnote below, were $1.13 billion for the year ended December 31, 2023, an increase of $139.1 million, or 14.0% higher than promotional allowances, commissions and other expenses of $990.6 million for the year ended December 31, 2022. Promotional allowances as a percentage of gross billings were 13.7% and 13.6% for the years ended December 31, 2023 and 2022, 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 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.55 Table of Contents Table of Contents Table of Contents gross billings for the Monster Energy® Drinks segment of approximately $127.8 million for the year ended December 31, 2023.​Gross billings for the Strategic Brands segment were $425.3 million for the year ended December 31, 2023, an increase of $26.6 million, or 6.7% higher than gross billings of $398.7 million for the year ended December 31, 2022. Net changes in foreign currency exchange rates had an unfavorable impact on gross billings in the Strategic Brands segment of approximately $22.0 million for the year ended December 31, 2023.​Gross billings for the Alcohol Brands segment were $188.6 million for the year ended December 31, 2023, an increase of $85.6 million, or 83.0% higher than gross billings of $103.0 million for the year ended December 31, 2022 (effectively from February 17, 2022 to December 31, 2022).​Gross billings for the Other segment were $23.5 million for the year ended December 31, 2023, an increase of $0.6 million, or 2.6% higher than gross billings of $22.9 million for the year ended December 31, 2022.​Promotional allowances, commissions and other expenses, as described in the footnote below, were $1.13 billion for the year ended December 31, 2023, an increase of $139.1 million, or 14.0% higher than promotional allowances, commissions and other expenses of $990.6 million for the year ended December 31, 2022. Promotional allowances as a percentage of gross billings were 13.7% and 13.6% for the years ended December 31, 2023 and 2022, 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 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. gross billings for the Monster Energy® Drinks segment of approximately $127.8 million for the year ended December 31, 2023. ​ Gross billings for the Strategic Brands segment were $425.3 million for the year ended December 31, 2023, an increase of $26.6 million, or 6.7% higher than gross billings of $398.7 million for the year ended December 31, 2022. Net changes in foreign currency exchange rates had an unfavorable impact on gross billings in the Strategic Brands segment of approximately $22.0 million for the year ended December 31, 2023. ​ Gross billings for the Alcohol Brands segment were $188.6 million for the year ended December 31, 2023, an increase of $85.6 million, or 83.0% higher than gross billings of $103.0 million for the year ended December 31, 2022 (effectively from February 17, 2022 to December 31, 2022). ​ Gross billings for the Other segment were $23.5 million for the year ended December 31, 2023, an increase of $0.6 million, or 2.6% higher than gross billings of $22.9 million for the year ended December 31, 2022. ​ Promotional allowances, commissions and other expenses, as described in the footnote below, were $1.13 billion for the year ended December 31, 2023, an increase of $139.1 million, or 14.0% higher than promotional allowances, commissions and other expenses of $990.6 million for the year ended December 31, 2022. Promotional allowances as a percentage of gross billings were 13.7% and 13.6% for the years ended December 31, 2023 and 2022, respectively. **Gross billings represent amounts invoiced to customers net of cash discounts, returns and excise taxes. Gross billings are used internally by management as an indicator of and to monitor operating performance, including sales performance of particular products, salesperson performance, product growth or declines and is useful to investors in evaluating overall Company performance. The use of gross billings allows evaluation of sales performance before the effect of any promotional items, which can mask certain performance issues. We therefore believe that the presentation of gross billings provides a useful measure of our operating performance. The use of gross billings is not a measure that is recognized under GAAP and should not be considered as an alternative to net sales, which is determined in accordance with GAAP, and should not be used alone as an indicator of operating performance in place of net sales. Additionally, gross billings may not be comparable to similarly titled measures used by other companies, as gross billings has been defined by our internal reporting practices. In addition, gross billings may not be realized in the form of cash receipts as promotional payments and allowances may be deducted from payments received from certain customers. 55 55 Table of ContentsThe following table reconciles the non-GAAP financial measure of gross billings with the most directly comparable GAAP financial measure of net sales: ​​​​​​​​​​​​​​​​ ​ ​ ​ Percentage Percentage​In thousands​​​​​​​​​ Change​Change​​ 2023 2022 2021 23 vs. 22​22 vs. 21​Gross Billings​$ 8,229,709​$ 7,261,639​$ 6,424,632 13.3% 13.0%Deferred Revenue​​ 39,955​​ 39,969​​ 41,462​ (0.0)% (3.6)%Less: Promotional allowances, commissions and other expenses***​ (1,129,637)​ (990,558)​ (924,742) 14.0% 7.1%Net Sales​$ 7,140,027​$ 6,311,050​$ 5,541,352 13.1% 13.9%​***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. The primary drivers of our promotional and other allowance activities for our energy drink products for the years ended December 31, 2023 and 2022 were (i) to increase sales volume and trial, (ii) to address market conditions, and (iii) to secure shelf and display space at retail. Promotional and other allowances for our Alcohol Brands segment primarily include price promotions where permitted.SalesThe table set forth below discloses selected quarterly data regarding sales for the past three years. Data from any one or more quarters 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, 56 Table of Contents Table of Contents Table of Contents The following table reconciles the non-GAAP financial measure of gross billings with the most directly comparable GAAP financial measure of net sales: ​​​​​​​​​​​​​​​​ ​ ​ ​ Percentage Percentage​In thousands​​​​​​​​​ Change​Change​​ 2023 2022 2021 23 vs. 22​22 vs. 21​Gross Billings​$ 8,229,709​$ 7,261,639​$ 6,424,632 13.3% 13.0%Deferred Revenue​​ 39,955​​ 39,969​​ 41,462​ (0.0)% (3.6)%Less: Promotional allowances, commissions and other expenses***​ (1,129,637)​ (990,558)​ (924,742) 14.0% 7.1%Net Sales​$ 7,140,027​$ 6,311,050​$ 5,541,352 13.1% 13.9%​***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. The primary drivers of our promotional and other allowance activities for our energy drink products for the years ended December 31, 2023 and 2022 were (i) to increase sales volume and trial, (ii) to address market conditions, and (iii) to secure shelf and display space at retail. Promotional and other allowances for our Alcohol Brands segment primarily include price promotions where permitted.SalesThe table set forth below discloses selected quarterly data regarding sales for the past three years. Data from any one or more quarters 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, The following table reconciles the non-GAAP financial measure of gross billings with the most directly comparable GAAP financial measure of net sales: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Percentage Percentage ​ In thousands ​ ​ ​ ​ ​ ​ ​ ​ ​ Change ​ Change ​ ​ 2023 2022 2021 23 vs. 22 ​ 22 vs. 21 ​ Gross Billings ​ $ 8,229,709 ​ $ 7,261,639 ​ $ 6,424,632 13.3 % 13.0 % Deferred Revenue ​ ​ 39,955 ​ ​ 39,969 ​ ​ 41,462 ​ (0.0) % (3.6) % Less: Promotional allowances, commissions and other expenses*** ​ (1,129,637) ​ (990,558) ​ (924,742) 14.0 % 7.1 % Net Sales ​ $ 7,140,027 ​ $ 6,311,050 ​ $ 5,541,352 13.1 % 13.9 % ​ ***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. The primary drivers of our promotional and other allowance activities for our energy drink products for the years ended December 31, 2023 and 2022 were (i) to increase sales volume and trial, (ii) to address market conditions, and (iii) to secure shelf and display space at retail. Promotional and other allowances for our Alcohol Brands segment primarily include price promotions where permitted. Sales The table set forth below discloses selected quarterly data regarding sales for the past three years. Data from any one or more quarters 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, 56 56 Table of Contentschanges in the sales mix of our products and changes in and/or increased advertising and promotional expenses. (See "Part I, Item 1 - Business - Seasonality").​​​​​​​​​​​ 2023 2022 2021Net Sales (in Thousands)​​​​​​​​​Quarter 1​$ 1,698,930​$ 1,518,574​$ 1,243,816Quarter 2​ 1,854,961​ 1,655,260​ 1,461,934Quarter 3​ 1,856,028​ 1,624,286​ 1,410,557Quarter 4​ 1,730,108​ 1,512,930​ 1,425,045Total​$ 7,140,027​$ 6,311,050​$ 5,541,352​​​​​​​​​​Less: Alcohol Brands and Other segment net sales (in Thousands)​​​​​​​​​Quarter 1​$ (50,904)​$ (21,134)​$ (5,727)Quarter 2​ (68,384)​ (38,428)​ (7,905)Quarter 3​ (49,024)​ (33,265)​ (6,316)Quarter 4​ (40,037)​ (31,522)​ (5,969)Total​$ (208,349)​$ (124,349)​$ (25,917)​​​​​​​​​​Adjusted Net Sales (in Thousands)¹​​​​​​​​​Quarter 1​$ 1,648,026​$ 1,497,440​$ 1,238,089Quarter 2​ 1,786,577​ 1,616,832​ 1,454,029Quarter 3​ 1,807,004​ 1,591,021​ 1,404,241Quarter 4​ 1,690,071​ 1,481,408​ 1,419,076Total​$ 6,931,678​$ 6,186,701​$ 5,515,435​​​​​​​​​​Energy Drink Case Volume / Sales (in Thousands)​​​​​​​​​Quarter 1​ 182,444​ 168,793​ 138,566Quarter 2​ 198,406​ 184,197​ 161,450Quarter 3​ 203,088​ 182,460​ 159,975Quarter 4​ 185,303​ 166,227​ 153,450Total​ 769,241​ 701,677​ 613,441​​​​​​​​​​Energy Drink Adjusted Average Net Sales Per Case​​​​​​​​​Quarter 1​$ 9.03​$ 8.87​$ 8.94Quarter 2​ 9.00​ 8.78​ 9.01Quarter 3​ 8.90​ 8.72​ 8.78Quarter 4​ 9.12​ 8.91​ 9.25Total​$ 9.01​$ 8.82​$ 8.99​1Excludes Alcohol Brands segment and Other segment net sales.57 Table of Contents Table of Contents Table of Contents changes in the sales mix of our products and changes in and/or increased advertising and promotional expenses. (See "Part I, Item 1 - Business - Seasonality").​​​​​​​​​​​ 2023 2022 2021Net Sales (in Thousands)​​​​​​​​​Quarter 1​$ 1,698,930​$ 1,518,574​$ 1,243,816Quarter 2​ 1,854,961​ 1,655,260​ 1,461,934Quarter 3​ 1,856,028​ 1,624,286​ 1,410,557Quarter 4​ 1,730,108​ 1,512,930​ 1,425,045Total​$ 7,140,027​$ 6,311,050​$ 5,541,352​​​​​​​​​​Less: Alcohol Brands and Other segment net sales (in Thousands)​​​​​​​​​Quarter 1​$ (50,904)​$ (21,134)​$ (5,727)Quarter 2​ (68,384)​ (38,428)​ (7,905)Quarter 3​ (49,024)​ (33,265)​ (6,316)Quarter 4​ (40,037)​ (31,522)​ (5,969)Total​$ (208,349)​$ (124,349)​$ (25,917)​​​​​​​​​​Adjusted Net Sales (in Thousands)¹​​​​​​​​​Quarter 1​$ 1,648,026​$ 1,497,440​$ 1,238,089Quarter 2​ 1,786,577​ 1,616,832​ 1,454,029Quarter 3​ 1,807,004​ 1,591,021​ 1,404,241Quarter 4​ 1,690,071​ 1,481,408​ 1,419,076Total​$ 6,931,678​$ 6,186,701​$ 5,515,435​​​​​​​​​​Energy Drink Case Volume / Sales (in Thousands)​​​​​​​​​Quarter 1​ 182,444​ 168,793​ 138,566Quarter 2​ 198,406​ 184,197​ 161,450Quarter 3​ 203,088​ 182,460​ 159,975Quarter 4​ 185,303​ 166,227​ 153,450Total​ 769,241​ 701,677​ 613,441​​​​​​​​​​Energy Drink Adjusted Average Net Sales Per Case​​​​​​​​​Quarter 1​$ 9.03​$ 8.87​$ 8.94Quarter 2​ 9.00​ 8.78​ 9.01Quarter 3​ 8.90​ 8.72​ 8.78Quarter 4​ 9.12​ 8.91​ 9.25Total​$ 9.01​$ 8.82​$ 8.99​1Excludes Alcohol Brands segment and Other segment net sales. changes in the sales mix of our products and changes in and/or increased advertising and promotional expenses. (See "Part I, Item 1 - Business - Seasonality"). ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ 2023 2022 2021 Net Sales (in Thousands) ​ ​ ​ ​ ​ ​ ​ ​ ​ Quarter 1 ​ $ 1,698,930 ​ $ 1,518,574 ​ $ 1,243,816 Quarter 2 ​ 1,854,961 ​ 1,655,260 ​ 1,461,934 Quarter 3 ​ 1,856,028 ​ 1,624,286 ​ 1,410,557 Quarter 4 ​ 1,730,108 ​ 1,512,930 ​ 1,425,045 Total ​ $ 7,140,027 ​ $ 6,311,050 ​ $ 5,541,352 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Less: Alcohol Brands and Other segment net sales (in Thousands) ​ ​ ​ ​ ​ ​ ​ ​ ​ Quarter 1 ​ $ (50,904) ​ $ (21,134) ​ $ (5,727) Quarter 2 ​ (68,384) ​ (38,428) ​ (7,905) Quarter 3 ​ (49,024) ​ (33,265) ​ (6,316) Quarter 4 ​ (40,037) ​ (31,522) ​ (5,969) Total ​ $ (208,349) ​ $ (124,349) ​ $ (25,917) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Adjusted Net Sales (in Thousands)¹ ​ ​ ​ ​ ​ ​ ​ ​ ​ Quarter 1 ​ $ 1,648,026 ​ $ 1,497,440 ​ $ 1,238,089 Quarter 2 ​ 1,786,577 ​ 1,616,832 ​ 1,454,029 Quarter 3 ​ 1,807,004 ​ 1,591,021 ​ 1,404,241 Quarter 4 ​ 1,690,071 ​ 1,481,408 ​ 1,419,076 Total ​ $ 6,931,678 ​ $ 6,186,701 ​ $ 5,515,435 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Energy Drink Case Volume / Sales (in Thousands) ​ ​ ​ ​ ​ ​ ​ ​ ​ Quarter 1 ​ 182,444 ​ 168,793 ​ 138,566 Quarter 2 ​ 198,406 ​ 184,197 ​ 161,450 Quarter 3 ​ 203,088 ​ 182,460 ​ 159,975 Quarter 4 ​ 185,303 ​ 166,227 ​ 153,450 Total ​ 769,241 ​ 701,677 ​ 613,441 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Energy Drink Adjusted Average Net Sales Per Case ​ ​ ​ ​ ​ ​ ​ ​ ​ Quarter 1 ​ $ 9.03 ​ $ 8.87 ​ $ 8.94 Quarter 2 ​ 9.00 ​ 8.78 ​ 9.01 Quarter 3 ​ 8.90 ​ 8.72 ​ 8.78 Quarter 4 ​ 9.12 ​ 8.91 ​ 9.25 Total ​ $ 9.01 ​ $ 8.82 ​ $ 8.99 ​ 1Excludes Alcohol Brands segment and Other segment net sales. 57 57 Table of ContentsThe following represents energy drink case sales by segment for the years ended December 31:​​​​​​​​​​(In thousands, except average net sales per case) 2023 2022 2021Net sales​$ 7,140,027​$ 6,311,050​$ 5,541,352Less: Alcohol Brands segment sales​​ (184,855)​​ (101,405)​​ - Less: Other segment sales​ (23,494)​ (22,944)​ (25,917)Adjusted net sales1​$ 6,931,678​$ 6,186,701​$ 5,515,435​​​​​​​​​​Case sales by segment:1​ ​ ​ Monster Energy® Drinks​ 632,950​ 581,937​ 520,577Strategic Brands​ 136,291​ 119,740​ 92,864Total case sales​ 769,241​ 701,677​ 613,441Average net sales per case - Energy Drinks​$ 9.01​$ 8.82​$ 8.99​1Excludes Alcohol Brands segment and Other segment net sales.Net changes in foreign currency exchange rates had an unfavorable impact on both net sales and the overall average net sales per case for the year ended December 31, 2023.The following represents case sales for our craft beers, hard seltzers and FMBs, in 192-ounce equivalents, for the years ended December 31:​​​​​​​(In thousands, except average net sales per case) 2023 20221Alcohol Brands segment net sales $ 184,855 $ 101,405Case sales​ 13,131​ 6,525Average net sales per case - Alcohol Brands​$ 14.08​$ 15.54​1For the year ended December 31, 2022, effectively from February 17, 2022 to December 31, 2022.InflationWe believe inflation did not have a significant impact on our results of operations for the year ended December 31, 2023. Inflation had a negative impact on our results of operations, leading to increased cost of sales and operating expenses for the year ended December 31, 2022. To mitigate the impact of inflation, we implemented the Pricing Actions.Liquidity and Capital ResourcesCash and cash equivalents, short-term and long-term investments - As of December 31, 2023, we had $2.30 billion in cash and cash equivalents, $955.6 million in short-term investments and $76.4 million in long-term investments. We maintain our investments for cash management purposes and not for purposes of speculation. Our risk management policies emphasize credit quality (primarily based on short-term ratings by nationally recognized statistical rating organizations) in selecting and maintaining our investments. We regularly assess market risk of our investments and believe our current policies and investment practices adequately limit those risks. However, certain of these investments are subject to general credit, liquidity, market and interest rate risks. These market risks associated with our investment portfolio may have an adverse effect on our future results of operations, liquidity and financial condition.Of our $2.30 billion of cash and cash equivalents held at December 31, 2023, $971.8 million was held by our foreign subsidiaries. No short-term or long-term investments were held by our foreign subsidiaries at December 31, 2023.​We believe that cash available from operations, including our cash resources and access to credit, will be sufficient for our working capital needs, including purchase commitments for raw materials and inventory, increases in accounts receivable, payments of tax liabilities, expansion and development needs, purchases of capital assets, purchases of 58 Table of Contents Table of Contents Table of Contents The following represents energy drink case sales by segment for the years ended December 31:​​​​​​​​​​(In thousands, except average net sales per case) 2023 2022 2021Net sales​$ 7,140,027​$ 6,311,050​$ 5,541,352Less: Alcohol Brands segment sales​​ (184,855)​​ (101,405)​​ - Less: Other segment sales​ (23,494)​ (22,944)​ (25,917)Adjusted net sales1​$ 6,931,678​$ 6,186,701​$ 5,515,435​​​​​​​​​​Case sales by segment:1​ ​ ​ Monster Energy® Drinks​ 632,950​ 581,937​ 520,577Strategic Brands​ 136,291​ 119,740​ 92,864Total case sales​ 769,241​ 701,677​ 613,441Average net sales per case - Energy Drinks​$ 9.01​$ 8.82​$ 8.99​1Excludes Alcohol Brands segment and Other segment net sales.Net changes in foreign currency exchange rates had an unfavorable impact on both net sales and the overall average net sales per case for the year ended December 31, 2023.The following represents case sales for our craft beers, hard seltzers and FMBs, in 192-ounce equivalents, for the years ended December 31:​​​​​​​(In thousands, except average net sales per case) 2023 20221Alcohol Brands segment net sales $ 184,855 $ 101,405Case sales​ 13,131​ 6,525Average net sales per case - Alcohol Brands​$ 14.08​$ 15.54​1For the year ended December 31, 2022, effectively from February 17, 2022 to December 31, 2022.InflationWe believe inflation did not have a significant impact on our results of operations for the year ended December 31, 2023. Inflation had a negative impact on our results of operations, leading to increased cost of sales and operating expenses for the year ended December 31, 2022. To mitigate the impact of inflation, we implemented the Pricing Actions.Liquidity and Capital ResourcesCash and cash equivalents, short-term and long-term investments - As of December 31, 2023, we had $2.30 billion in cash and cash equivalents, $955.6 million in short-term investments and $76.4 million in long-term investments. We maintain our investments for cash management purposes and not for purposes of speculation. Our risk management policies emphasize credit quality (primarily based on short-term ratings by nationally recognized statistical rating organizations) in selecting and maintaining our investments. We regularly assess market risk of our investments and believe our current policies and investment practices adequately limit those risks. However, certain of these investments are subject to general credit, liquidity, market and interest rate risks. These market risks associated with our investment portfolio may have an adverse effect on our future results of operations, liquidity and financial condition.Of our $2.30 billion of cash and cash equivalents held at December 31, 2023, $971.8 million was held by our foreign subsidiaries. No short-term or long-term investments were held by our foreign subsidiaries at December 31, 2023.​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 The following represents energy drink case sales by segment for the years ended December 31: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ (In thousands, except average net sales per case) 2023 2022 2021 Net sales ​ $ 7,140,027 ​ $ 6,311,050 ​ $ 5,541,352 Less: Alcohol Brands segment sales ​ ​ (184,855) ​ ​ (101,405) ​ ​ - Less: Other segment sales ​ (23,494) ​ (22,944) ​ (25,917) Adjusted net sales1 ​ $ 6,931,678 ​ $ 6,186,701 ​ $ 5,515,435 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Case sales by segment:1 ​ ​ ​ Monster Energy® Drinks ​ 632,950 ​ 581,937 ​ 520,577 Strategic Brands ​ 136,291 ​ 119,740 ​ 92,864 Total case sales ​ 769,241 ​ 701,677 ​ 613,441 Average net sales per case - Energy Drinks ​ $ 9.01 ​ $ 8.82 ​ $ 8.99 ​ 1Excludes Alcohol Brands segment and Other segment net sales. Net changes in foreign currency exchange rates had an unfavorable impact on both net sales and the overall average net sales per case for the year ended December 31, 2023. The following represents case sales for our craft beers, hard seltzers and FMBs, in 192-ounce equivalents, for the years ended December 31: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ (In thousands, except average net sales per case) 2023 20221 Alcohol Brands segment net sales $ 184,855 $ 101,405 Case sales ​ 13,131 ​ 6,525 Average net sales per case - Alcohol Brands ​ $ 14.08 ​ $ 15.54 ​ 1For the year ended December 31, 2022, effectively from February 17, 2022 to December 31, 2022. Inflation We believe inflation did not have a significant impact on our results of operations for the year ended December 31, 2023. Inflation had a negative impact on our results of operations, leading to increased cost of sales and operating expenses for the year ended December 31, 2022. To mitigate the impact of inflation, we implemented the Pricing Actions. **Current (2025):** Gross billings were $8.74 billion for the year ended December 31, 2024, an increase of approximately $506.0 million, or 6.1% higher than gross billings of $8.23 billion for the year ended December 31, 2023. Net changes in foreign currency exchange rates had an unfavorable impact on gross billings of approximately $246.9 million for the year ended December 31, 2024. Gross billings on a foreign currency adjusted basis increased 9.1% for the year ended December 31, 2024. Gross billings for the Monster Energy® Drinks segment were $8.04 billion for the year ended December 31, 2024, an increase of approximately $452.1 million, or 6.0% higher than gross billings of $7.59 billion for the year ended December 31, 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 $209.7 million for the year ended December 31, 2024. Gross billings for the Monster Energy® Drinks segment on a foreign currency adjusted basis increased 8.7% for the year ended December 31, 2024. Gross billings for the Strategic Brands segment were $490.8 million for the year ended December 31, 2024, an increase of $65.5 million, or 15.4% higher than gross billings of $425.3 million for the year ended December 31, 2023. Gross billings for the Strategic Brands segment increased primarily due to increased sales by volume of our Burn®, Predator®, NOS® and Fury® brand energy drinks. Net changes in foreign currency exchange rates had an unfavorable impact on gross billings in the Strategic Brands segment of approximately $37.2 million for the year ended December 31, 2024. Gross billings for the Strategic Brands segment on a foreign currency adjusted basis increased 24.2% for the year ended December 31, 2024. Gross billings for the Alcohol Brands segment were $176.8 million for the year ended December 31, 2024, a decrease of $11.8 million, or 6.3% lower than gross billings of $188.6 million for the year ended December 31, 2023. The decrease in gross billings for the year ended December 31, 2024 was primarily due to decreased sales by volume of craft beers. Gross billings for the Other segment were $23.7 million for the year ended December 31, 2024, an increase of $0.2 million, or 0.7% higher than gross billings of $23.5 million for the year ended December 31, 2023. 50 50 Table of ContentsPromotional allowances, commissions and other expenses, as described in the footnote below, were $1.28 billion for the year ended December 31, 2024, an increase of $153.2 million, or 13.6% higher than promotional allowances, commissions and other expenses of $1.13 billion for the year ended December 31, 2023. Promotional allowances as a percentage of gross billings were 14.7% and 13.7% for the years ended December 31, 2024 and 2023, respectively.**Gross billings represent amounts invoiced to customers net of cash discounts, returns and excise taxes. Gross billings are used internally by management as an indicator of and to monitor operating performance, including sales performance of particular products, salesperson performance, product growth or declines and is useful to investors in evaluating overall Company performance. The use of gross billings allows evaluation of sales performance before the effect of any promotional items, which can mask certain performance issues. We therefore believe that the presentation of gross billings provides a useful measure of our operating performance. The use of gross billings is not a measure that is recognized under GAAP and should not be considered as an alternative to net sales, which is determined in accordance with GAAP, and should not be used alone as an indicator of operating performance in place of net sales. Additionally, gross billings may not be comparable to similarly titled measures used by other companies, as gross billings has been defined by our internal reporting practices. In addition, gross billings may not be realized in the form of cash receipts as promotional payments and allowances may be deducted from payments received from certain customers.The following table reconciles the non-GAAP financial measure of gross billings with the most directly comparable GAAP financial measure of net sales: ​​​​​​​​​​​​​​​​ ​ ​ ​ Percentage Percentage​(In thousands)​​​​​​​​​ Change​Change​​ 2024 2023 2022 24 vs. 23​23 vs. 22​Gross Billings​$ 8,735,661​$ 8,229,709​$ 7,261,639 6.1% 13.3%Deferred Revenue​​ 39,935​​ 39,955​​ 39,969​ (0.1)% (0.0)%Less: Promotional allowances, commissions and other expenses***​ (1,282,887)​ (1,129,637)​ (990,558) 13.6% 14.0%Net Sales​$ 7,492,709​$ 7,140,027​$ 6,311,050 4.9% 13.1%​***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. The primary drivers of our promotional and other allowance activities for our energy drink products for the years ended December 31, 2024 and 2023 were (i) to increase sales volume and trial, (ii) to address market conditions, and (iii) to secure shelf and display space at retail. Promotional and other allowances for our Alcohol Brands segment primarily include price promotions where permitted.SalesThe table set forth below discloses selected quarterly data regarding sales for the past three years. Data from any one or more quarters 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.51 Table of Contents Table of Contents Table of Contents Promotional allowances, commissions and other expenses, as described in the footnote below, were $1.28 billion for the year ended December 31, 2024, an increase of $153.2 million, or 13.6% higher than promotional allowances, commissions and other expenses of $1.13 billion for the year ended December 31, 2023. Promotional allowances as a percentage of gross billings were 14.7% and 13.7% for the years ended December 31, 2024 and 2023, respectively.**Gross billings represent amounts invoiced to customers net of cash discounts, returns and excise taxes. Gross billings are used internally by management as an indicator of and to monitor operating performance, including sales performance of particular products, salesperson performance, product growth or declines and is useful to investors in evaluating overall Company performance. The use of gross billings allows evaluation of sales performance before the effect of any promotional items, which can mask certain performance issues. We therefore believe that the presentation of gross billings provides a useful measure of our operating performance. The use of gross billings is not a measure that is recognized under GAAP and should not be considered as an alternative to net sales, which is determined in accordance with GAAP, and should not be used alone as an indicator of operating performance in place of net sales. Additionally, gross billings may not be comparable to similarly titled measures used by other companies, as gross billings has been defined by our internal reporting practices. In addition, gross billings may not be realized in the form of cash receipts as promotional payments and allowances may be deducted from payments received from certain customers.The following table reconciles the non-GAAP financial measure of gross billings with the most directly comparable GAAP financial measure of net sales: ​​​​​​​​​​​​​​​​ ​ ​ ​ Percentage Percentage​(In thousands)​​​​​​​​​ Change​Change​​ 2024 2023 2022 24 vs. 23​23 vs. 22​Gross Billings​$ 8,735,661​$ 8,229,709​$ 7,261,639 6.1% 13.3%Deferred Revenue​​ 39,935​​ 39,955​​ 39,969​ (0.1)% (0.0)%Less: Promotional allowances, commissions and other expenses***​ (1,282,887)​ (1,129,637)​ (990,558) 13.6% 14.0%Net Sales​$ 7,492,709​$ 7,140,027​$ 6,311,050 4.9% 13.1%​***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. The primary drivers of our promotional and other allowance activities for our energy drink products for the years ended December 31, 2024 and 2023 were (i) to increase sales volume and trial, (ii) to address market conditions, and (iii) to secure shelf and display space at retail. Promotional and other allowances for our Alcohol Brands segment primarily include price promotions where permitted.SalesThe table set forth below discloses selected quarterly data regarding sales for the past three years. Data from any one or more quarters 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. Promotional allowances, commissions and other expenses, as described in the footnote below, were $1.28 billion for the year ended December 31, 2024, an increase of $153.2 million, or 13.6% higher than promotional allowances, commissions and other expenses of $1.13 billion for the year ended December 31, 2023. Promotional allowances as a percentage of gross billings were 14.7% and 13.7% for the years ended December 31, 2024 and 2023, respectively.**Gross billings represent amounts invoiced to customers net of cash discounts, returns and excise taxes. Gross billings are used internally by management as an indicator of and to monitor operating performance, including sales performance of particular products, salesperson performance, product growth or declines and is useful to investors in evaluating overall Company performance. The use of gross billings allows evaluation of sales performance before the effect of any promotional items, which can mask certain performance issues. We therefore believe that the presentation of gross billings provides a useful measure of our operating performance. The use of gross billings is not a measure that is recognized under GAAP and should not be considered as an alternative to net sales, which is determined in accordance with GAAP, and should not be used alone as an indicator of operating performance in place of net sales. Additionally, gross billings may not be comparable to similarly titled measures used by other companies, as gross billings has been defined by our internal reporting practices. In addition, gross billings may not be realized in the form of cash receipts as promotional payments and allowances may be deducted from payments received from certain customers.The following table reconciles the non-GAAP financial measure of gross billings with the most directly comparable GAAP financial measure of net sales: ​​​​​​​​​​​​​​​​ ​ ​ ​ Percentage Percentage​(In thousands)​​​​​​​​​ Change​Change​​ 2024 2023 2022 24 vs. 23​23 vs. 22​Gross Billings​$ 8,735,661​$ 8,229,709​$ 7,261,639 6.1% 13.3%Deferred Revenue​​ 39,935​​ 39,955​​ 39,969​ (0.1)% (0.0)%Less: Promotional allowances, commissions and other expenses***​ (1,282,887)​ (1,129,637)​ (990,558) 13.6% 14.0%Net Sales​$ 7,492,709​$ 7,140,027​$ 6,311,050 4.9% 13.1%​***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. The primary drivers of our promotional and other allowance activities for our energy drink products for the years ended December 31, 2024 and 2023 were (i) to increase sales volume and trial, (ii) to address market conditions, and (iii) to secure shelf and display space at retail. Promotional and other allowances for our Alcohol Brands segment primarily include price promotions where permitted.SalesThe table set forth below discloses selected quarterly data regarding sales for the past three years. Data from any one or more quarters 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. Promotional allowances, commissions and other expenses, as described in the footnote below, were $1.28 billion for the year ended December 31, 2024, an increase of $153.2 million, or 13.6% higher than promotional allowances, commissions and other expenses of $1.13 billion for the year ended December 31, 2023. Promotional allowances as a percentage of gross billings were 14.7% and 13.7% for the years ended December 31, 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 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: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Percentage Percentage ​ (In thousands) ​ ​ ​ ​ ​ ​ ​ ​ ​ Change ​ Change ​ ​ 2024 2023 2022 24 vs. 23 ​ 23 vs. 22 ​ Gross Billings ​ $ 8,735,661 ​ $ 8,229,709 ​ $ 7,261,639 6.1 % 13.3 % Deferred Revenue ​ ​ 39,935 ​ ​ 39,955 ​ ​ 39,969 ​ (0.1) % (0.0) % Less: Promotional allowances, commissions and other expenses*** ​ (1,282,887) ​ (1,129,637) ​ (990,558) 13.6 % 14.0 % Net Sales ​ $ 7,492,709 ​ $ 7,140,027 ​ $ 6,311,050 4.9 % 13.1 % ​ ***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. The primary drivers of our promotional and other allowance activities for our energy drink products for the years ended December 31, 2024 and 2023 were (i) to increase sales volume and trial, (ii) to address market conditions, and (iii) to secure shelf and display space at retail. Promotional and other allowances for our Alcohol Brands segment primarily include price promotions where permitted. Sales The table set forth below discloses selected quarterly data regarding sales for the past three years. Data from any one or more quarters 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. 51 51 Table of ContentsOur 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 and/or increased advertising and promotional expenses. (See "Part I, Item 1 - Business - Seasonality").​​​​​​​​​​​ 2024 2023 2022Net Sales (in Thousands)​​​​​​​​​Quarter 1​$ 1,899,098​$ 1,698,930​$ 1,518,574Quarter 2​ 1,900,597​ 1,854,961​ 1,655,260Quarter 3​ 1,880,973​ 1,856,028​ 1,624,286Quarter 4​ 1,812,041​ 1,730,108​ 1,512,930Total​$ 7,492,709​$ 7,140,027​$ 6,311,050​​​​​​​​​​Less: Alcohol Brands and Other segment net sales (in Thousands)​​​​​​​​​Quarter 1​$ (61,603)​$ (50,904)​$ (21,134)Quarter 2​ (48,567)​ (68,384)​ (38,428)Quarter 3​ (45,714)​ (49,024)​ (33,265)Quarter 4​ (39,995)​ (40,037)​ (31,522)Total​$ (195,879)​$ (208,349)​$ (124,349)​​​​​​​​​​Adjusted Net Sales (in Thousands)¹​​​​​​​​​Quarter 1​$ 1,837,495​$ 1,648,026​$ 1,497,440Quarter 2​ 1,852,030​ 1,786,577​ 1,616,832Quarter 3​ 1,835,259​ 1,807,004​ 1,591,021Quarter 4​ 1,772,046​ 1,690,071​ 1,481,408Total​$ 7,296,830​$ 6,931,678​$ 6,186,701​​​​​​​​​​Energy Drink Case Volume / Sales (in Thousands)​​​​​​​​​Quarter 1​ 211,430​ 182,444​ 168,793Quarter 2​ 212,194​ 198,406​ 184,197Quarter 3​ 219,409​ 203,088​ 182,460Quarter 4​ 203,630​ 185,303​ 166,227Total​ 846,663​ 769,241​ 701,677​​​​​​​​​​Energy Drink Adjusted Average Net Sales Per Case​​​​​​​​​Quarter 1​$ 8.69​$ 9.03​$ 8.87Quarter 2​ 8.73​ 9.00​ 8.78Quarter 3​ 8.36​ 8.90​ 8.72Quarter 4​ 8.70​ 9.12​ 8.91Total​$ 8.62​$ 9.01​$ 8.82​1Excludes Alcohol Brands segment and Other segment net sales.​52 Table of Contents Table of Contents Table of Contents 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 and/or increased advertising and promotional expenses. (See "Part I, Item 1 - Business - Seasonality").​​​​​​​​​​​ 2024 2023 2022Net Sales (in Thousands)​​​​​​​​​Quarter 1​$ 1,899,098​$ 1,698,930​$ 1,518,574Quarter 2​ 1,900,597​ 1,854,961​ 1,655,260Quarter 3​ 1,880,973​ 1,856,028​ 1,624,286Quarter 4​ 1,812,041​ 1,730,108​ 1,512,930Total​$ 7,492,709​$ 7,140,027​$ 6,311,050​​​​​​​​​​Less: Alcohol Brands and Other segment net sales (in Thousands)​​​​​​​​​Quarter 1​$ (61,603)​$ (50,904)​$ (21,134)Quarter 2​ (48,567)​ (68,384)​ (38,428)Quarter 3​ (45,714)​ (49,024)​ (33,265)Quarter 4​ (39,995)​ (40,037)​ (31,522)Total​$ (195,879)​$ (208,349)​$ (124,349)​​​​​​​​​​Adjusted Net Sales (in Thousands)¹​​​​​​​​​Quarter 1​$ 1,837,495​$ 1,648,026​$ 1,497,440Quarter 2​ 1,852,030​ 1,786,577​ 1,616,832Quarter 3​ 1,835,259​ 1,807,004​ 1,591,021Quarter 4​ 1,772,046​ 1,690,071​ 1,481,408Total​$ 7,296,830​$ 6,931,678​$ 6,186,701​​​​​​​​​​Energy Drink Case Volume / Sales (in Thousands)​​​​​​​​​Quarter 1​ 211,430​ 182,444​ 168,793Quarter 2​ 212,194​ 198,406​ 184,197Quarter 3​ 219,409​ 203,088​ 182,460Quarter 4​ 203,630​ 185,303​ 166,227Total​ 846,663​ 769,241​ 701,677​​​​​​​​​​Energy Drink Adjusted Average Net Sales Per Case​​​​​​​​​Quarter 1​$ 8.69​$ 9.03​$ 8.87Quarter 2​ 8.73​ 9.00​ 8.78Quarter 3​ 8.36​ 8.90​ 8.72Quarter 4​ 8.70​ 9.12​ 8.91Total​$ 8.62​$ 9.01​$ 8.82​1Excludes Alcohol Brands segment and Other segment net sales.​ 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 and/or increased advertising and promotional expenses. (See "Part I, Item 1 - Business - Seasonality").​​​​​​​​​​​ 2024 2023 2022Net Sales (in Thousands)​​​​​​​​​Quarter 1​$ 1,899,098​$ 1,698,930​$ 1,518,574Quarter 2​ 1,900,597​ 1,854,961​ 1,655,260Quarter 3​ 1,880,973​ 1,856,028​ 1,624,286Quarter 4​ 1,812,041​ 1,730,108​ 1,512,930Total​$ 7,492,709​$ 7,140,027​$ 6,311,050​​​​​​​​​​Less: Alcohol Brands and Other segment net sales (in Thousands)​​​​​​​​​Quarter 1​$ (61,603)​$ (50,904)​$ (21,134)Quarter 2​ (48,567)​ (68,384)​ (38,428)Quarter 3​ (45,714)​ (49,024)​ (33,265)Quarter 4​ (39,995)​ (40,037)​ (31,522)Total​$ (195,879)​$ (208,349)​$ (124,349)​​​​​​​​​​Adjusted Net Sales (in Thousands)¹​​​​​​​​​Quarter 1​$ 1,837,495​$ 1,648,026​$ 1,497,440Quarter 2​ 1,852,030​ 1,786,577​ 1,616,832Quarter 3​ 1,835,259​ 1,807,004​ 1,591,021Quarter 4​ 1,772,046​ 1,690,071​ 1,481,408Total​$ 7,296,830​$ 6,931,678​$ 6,186,701​​​​​​​​​​Energy Drink Case Volume / Sales (in Thousands)​​​​​​​​​Quarter 1​ 211,430​ 182,444​ 168,793Quarter 2​ 212,194​ 198,406​ 184,197Quarter 3​ 219,409​ 203,088​ 182,460Quarter 4​ 203,630​ 185,303​ 166,227Total​ 846,663​ 769,241​ 701,677​​​​​​​​​​Energy Drink Adjusted Average Net Sales Per Case​​​​​​​​​Quarter 1​$ 8.69​$ 9.03​$ 8.87Quarter 2​ 8.73​ 9.00​ 8.78Quarter 3​ 8.36​ 8.90​ 8.72Quarter 4​ 8.70​ 9.12​ 8.91Total​$ 8.62​$ 9.01​$ 8.82​1Excludes Alcohol Brands segment and Other segment net sales.​ 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 and/or increased advertising and promotional expenses. (See "Part I, Item 1 - Business - Seasonality"). ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ 2024 2023 2022 Net Sales (in Thousands) ​ ​ ​ ​ ​ ​ ​ ​ ​ Quarter 1 ​ $ 1,899,098 ​ $ 1,698,930 ​ $ 1,518,574 Quarter 2 ​ 1,900,597 ​ 1,854,961 ​ 1,655,260 Quarter 3 ​ 1,880,973 ​ 1,856,028 ​ 1,624,286 Quarter 4 ​ 1,812,041 ​ 1,730,108 ​ 1,512,930 Total ​ $ 7,492,709 ​ $ 7,140,027 ​ $ 6,311,050 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Less: Alcohol Brands and Other segment net sales (in Thousands) ​ ​ ​ ​ ​ ​ ​ ​ ​ Quarter 1 ​ $ (61,603) ​ $ (50,904) ​ $ (21,134) Quarter 2 ​ (48,567) ​ (68,384) ​ (38,428) Quarter 3 ​ (45,714) ​ (49,024) ​ (33,265) Quarter 4 ​ (39,995) ​ (40,037) ​ (31,522) Total ​ $ (195,879) ​ $ (208,349) ​ $ (124,349) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Adjusted Net Sales (in Thousands)¹ ​ ​ ​ ​ ​ ​ ​ ​ ​ Quarter 1 ​ $ 1,837,495 ​ $ 1,648,026 ​ $ 1,497,440 Quarter 2 ​ 1,852,030 ​ 1,786,577 ​ 1,616,832 Quarter 3 ​ 1,835,259 ​ 1,807,004 ​ 1,591,021 Quarter 4 ​ 1,772,046 ​ 1,690,071 ​ 1,481,408 Total ​ $ 7,296,830 ​ $ 6,931,678 ​ $ 6,186,701 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Energy Drink Case Volume / Sales (in Thousands) ​ ​ ​ ​ ​ ​ ​ ​ ​ Quarter 1 ​ 211,430 ​ 182,444 ​ 168,793 Quarter 2 ​ 212,194 ​ 198,406 ​ 184,197 Quarter 3 ​ 219,409 ​ 203,088 ​ 182,460 Quarter 4 ​ 203,630 ​ 185,303 ​ 166,227 Total ​ 846,663 ​ 769,241 ​ 701,677 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Energy Drink Adjusted Average Net Sales Per Case ​ ​ ​ ​ ​ ​ ​ ​ ​ Quarter 1 ​ $ 8.69 ​ $ 9.03 ​ $ 8.87 Quarter 2 ​ 8.73 ​ 9.00 ​ 8.78 Quarter 3 ​ 8.36 ​ 8.90 ​ 8.72 Quarter 4 ​ 8.70 ​ 9.12 ​ 8.91 Total ​ $ 8.62 ​ $ 9.01 ​ $ 8.82 ​ 1Excludes Alcohol Brands segment and Other segment net sales. ​ 52 52 Table of ContentsThe following represents energy drink case sales by segment for the years ended December 31:​​​​​​​​​​(In thousands, except average net sales per case) 2024 2023 2022Net sales​$ 7,492,709​$ 7,140,027​$ 6,311,050Less: Alcohol Brands segment sales​​ (172,313)​​ (184,855)​​ (101,405)Less: Other segment sales​ (23,566)​ (23,494)​ (22,944)Adjusted net sales1​$ 7,296,830​$ 6,931,678​$ 6,186,701​​​​​​​​​​Case sales by segment:1​ ​ ​ Monster Energy® Drinks​ 671,015​ 632,950​ 581,937Strategic Brands​ 175,648​ 136,291​ 119,740Total case sales​ 846,663​ 769,241​ 701,677Average net sales per case - Energy Drinks​$ 8.62​$ 9.01​$ 8.82​1Excludes Alcohol Brands segment and Other segment net sales.Net changes in foreign currency exchange rates had an unfavorable impact on both net sales and the overall average net sales per case for the year ended December 31, 2024.The following represents case sales for our craft beers, FMBs and hard seltzers, in 192-ounce equivalents, for the years ended December 31:​​​​​​​​​​(In thousands, except average net sales per case) 2024 2023​20221Alcohol Brands segment net sales $ 172,313 $ 184,855​$ 101,405Case sales​ 12,477​ 13,131​ 6,525Average net sales per case - Alcohol Brands​$ 13.81​$ 14.08​$ 15.54​1For the year ended December 31, 2022, effectively from February 17, 2022 to December 31, 2022.InflationInflation had an impact on our results of operations for the year ended December 31, 2024, primarily due to domestic inflation as well as inflation related local currency price increases in certain international markets. Inflation did not have a significant impact on our results of operations for the year ended December 31, 2023. Inflation had a negative impact on our results of operations, leading to increased cost of sales and operating expenses for the year ended December 31, 2022. To mitigate the impact of inflation, we implemented the Pricing Actions.Liquidity and Capital ResourcesCash and cash equivalents. As of December 31, 2024, we had $1.53 billion in cash and cash equivalents. Of our $1.53 billion of cash and cash equivalents held at December 31, 2024, $1.07 billion 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 December 31, 2024, borrowings of $375.0 million remained outstanding on the Term Loan. As of February 27, 2025, borrowings of $225.0 million remained outstanding on the Term Loan. As of December 31, 2024, the Revolving Credit Facility had remaining availability of $750.0 million.53 Table of Contents Table of Contents Table of Contents The following represents energy drink case sales by segment for the years ended December 31:​​​​​​​​​​(In thousands, except average net sales per case) 2024 2023 2022Net sales​$ 7,492,709​$ 7,140,027​$ 6,311,050Less: Alcohol Brands segment sales​​ (172,313)​​ (184,855)​​ (101,405)Less: Other segment sales​ (23,566)​ (23,494)​ (22,944)Adjusted net sales1​$ 7,296,830​$ 6,931,678​$ 6,186,701​​​​​​​​​​Case sales by segment:1​ ​ ​ Monster Energy® Drinks​ 671,015​ 632,950​ 581,937Strategic Brands​ 175,648​ 136,291​ 119,740Total case sales​ 846,663​ 769,241​ 701,677Average net sales per case - Energy Drinks​$ 8.62​$ 9.01​$ 8.82​1Excludes Alcohol Brands segment and Other segment net sales.Net changes in foreign currency exchange rates had an unfavorable impact on both net sales and the overall average net sales per case for the year ended December 31, 2024.The following represents case sales for our craft beers, FMBs and hard seltzers, in 192-ounce equivalents, for the years ended December 31:​​​​​​​​​​(In thousands, except average net sales per case) 2024 2023​20221Alcohol Brands segment net sales $ 172,313 $ 184,855​$ 101,405Case sales​ 12,477​ 13,131​ 6,525Average net sales per case - Alcohol Brands​$ 13.81​$ 14.08​$ 15.54​1For the year ended December 31, 2022, effectively from February 17, 2022 to December 31, 2022.InflationInflation had an impact on our results of operations for the year ended December 31, 2024, primarily due to domestic inflation as well as inflation related local currency price increases in certain international markets. Inflation did not have a significant impact on our results of operations for the year ended December 31, 2023. Inflation had a negative impact on our results of operations, leading to increased cost of sales and operating expenses for the year ended December 31, 2022. To mitigate the impact of inflation, we implemented the Pricing Actions.Liquidity and Capital ResourcesCash and cash equivalents. As of December 31, 2024, we had $1.53 billion in cash and cash equivalents. Of our $1.53 billion of cash and cash equivalents held at December 31, 2024, $1.07 billion 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 December 31, 2024, borrowings of $375.0 million remained outstanding on the Term Loan. As of February 27, 2025, borrowings of $225.0 million remained outstanding on the Term Loan. As of December 31, 2024, the Revolving Credit Facility had remaining availability of $750.0 million. The following represents energy drink case sales by segment for the years ended December 31:​​​​​​​​​​(In thousands, except average net sales per case) 2024 2023 2022Net sales​$ 7,492,709​$ 7,140,027​$ 6,311,050Less: Alcohol Brands segment sales​​ (172,313)​​ (184,855)​​ (101,405)Less: Other segment sales​ (23,566)​ (23,494)​ (22,944)Adjusted net sales1​$ 7,296,830​$ 6,931,678​$ 6,186,701​​​​​​​​​​Case sales by segment:1​ ​ ​ Monster Energy® Drinks​ 671,015​ 632,950​ 581,937Strategic Brands​ 175,648​ 136,291​ 119,740Total case sales​ 846,663​ 769,241​ 701,677Average net sales per case - Energy Drinks​$ 8.62​$ 9.01​$ 8.82​1Excludes Alcohol Brands segment and Other segment net sales.Net changes in foreign currency exchange rates had an unfavorable impact on both net sales and the overall average net sales per case for the year ended December 31, 2024.The following represents case sales for our craft beers, FMBs and hard seltzers, in 192-ounce equivalents, for the years ended December 31:​​​​​​​​​​(In thousands, except average net sales per case) 2024 2023​20221Alcohol Brands segment net sales $ 172,313 $ 184,855​$ 101,405Case sales​ 12,477​ 13,131​ 6,525Average net sales per case - Alcohol Brands​$ 13.81​$ 14.08​$ 15.54​1For the year ended December 31, 2022, effectively from February 17, 2022 to December 31, 2022.InflationInflation had an impact on our results of operations for the year ended December 31, 2024, primarily due to domestic inflation as well as inflation related local currency price increases in certain international markets. Inflation did not have a significant impact on our results of operations for the year ended December 31, 2023. Inflation had a negative impact on our results of operations, leading to increased cost of sales and operating expenses for the year ended December 31, 2022. To mitigate the impact of inflation, we implemented the Pricing Actions.Liquidity and Capital ResourcesCash and cash equivalents. As of December 31, 2024, we had $1.53 billion in cash and cash equivalents. Of our $1.53 billion of cash and cash equivalents held at December 31, 2024, $1.07 billion 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 December 31, 2024, borrowings of $375.0 million remained outstanding on the Term Loan. As of February 27, 2025, borrowings of $225.0 million remained outstanding on the Term Loan. As of December 31, 2024, the Revolving Credit Facility had remaining availability of $750.0 million. The following represents energy drink case sales by segment for the years ended December 31: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ (In thousands, except average net sales per case) 2024 2023 2022 Net sales ​ $ 7,492,709 ​ $ 7,140,027 ​ $ 6,311,050 Less: Alcohol Brands segment sales ​ ​ (172,313) ​ ​ (184,855) ​ ​ (101,405) Less: Other segment sales ​ (23,566) ​ (23,494) ​ (22,944) Adjusted net sales1 ​ $ 7,296,830 ​ $ 6,931,678 ​ $ 6,186,701 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Case sales by segment:1 ​ ​ ​ Monster Energy® Drinks ​ 671,015 ​ 632,950 ​ 581,937 Strategic Brands ​ 175,648 ​ 136,291 ​ 119,740 Total case sales ​ 846,663 ​ 769,241 ​ 701,677 Average net sales per case - Energy Drinks ​ $ 8.62 ​ $ 9.01 ​ $ 8.82 ​ 1Excludes Alcohol Brands segment and Other segment net sales. Net changes in foreign currency exchange rates had an unfavorable impact on both net sales and the overall average net sales per case for the year ended December 31, 2024. The following represents case sales for our craft beers, FMBs and hard seltzers, in 192-ounce equivalents, for the years ended December 31: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ (In thousands, except average net sales per case) 2024 2023 ​ 20221 Alcohol Brands segment net sales $ 172,313 $ 184,855 ​ $ 101,405 Case sales ​ 12,477 ​ 13,131 ​ 6,525 Average net sales per case - Alcohol Brands ​ $ 13.81 ​ $ 14.08 ​ $ 15.54 ​ 1For the year ended December 31, 2022, effectively from February 17, 2022 to December 31, 2022. Inflation Inflation had an impact on our results of operations for the year ended December 31, 2024, primarily due to domestic inflation as well as inflation related local currency price increases in certain international markets. Inflation did not have a significant impact on our results of operations for the year ended December 31, 2023. Inflation had a negative impact on our results of operations, leading to increased cost of sales and operating expenses for the year ended December 31, 2022. To mitigate the impact of inflation, we implemented the Pricing Actions. --- ## Modified: (Tabular Dollars in Thousands, Except Per Share Amounts) **Key changes:** - Reworded sentence: "​ Revenue Recognition - See Note 3.Cost of Sales - Cost of sales consists of the costs of flavors, concentrates, supplement ingredients and/or beverage bases, the costs of raw materials utilized in the manufacture of beverages, co-packing fees, repacking fees, in-bound freight charges, as well as internal transfer costs, warehouse expenses incurred prior to the manufacture of the Company's finished products and certain quality control costs." - Reworded sentence: "Advertising and promotional expenses, including, but not limited to, production costs amounted to $584.1 million, $528.9 million and $460.7 million for the years ended December 31, 2024, 2023 and 2022, respectively." - Reworded sentence: "For those income tax positions where there is less than 50% likelihood that a tax benefit will be sustained, no tax benefit has been recognized in the financial statements." - Reworded sentence: "Advertising and promotional expenses, including, but not limited to, production costs amounted to $584.1 million, $528.9 million and $460.7 million for the years ended December 31, 2024, 2023 and 2022, respectively." - Reworded sentence: "86 86 Table of ContentsMONSTER BEVERAGE CORPORATION AND SUBSIDIARIESNOTES TO CONSOLIDATED FINANCIAL STATEMENTS(Tabular Dollars in Thousands, Except Per Share Amounts)​Stock-Based Compensation - The Company accounts for stock-based compensation under the provisions of FASB ASC 718." **Prior (2024):** ​ store demonstration costs, costs for merchandise displays, point-of-sale materials and premium items, sponsorship expenses, other marketing expenses and design expenses. Operating expenses also include such costs as payroll costs, travel costs, professional service fees including legal fees, termination payments made to certain of the Company's prior distributors, impairment charges on intangible assets, depreciation and other general and administrative costs.Freight-Out Costs - For the years ended December 31, 2023, 2022 and 2021, freight-out costs amounted to $223.6 million, $249.2 million and $213.9 million, respectively, and have been recorded in operating expenses in the accompanying consolidated statements of income.Advertising and Promotional Expenses - The Company accounts for advertising production costs by expensing such production costs the first time the related advertising takes place. A significant amount of the Company's promotional expenses result from payments under sponsorship and endorsement contracts. Accounting for sponsorship and endorsement payments is based upon specific contract provisions. Generally, sponsorship and endorsement payments are expensed on a straight-line basis over the term of the contract after giving recognition to the periodic performance compliance provisions of the contracts. Advertising and promotional expenses, including, but not limited to, production costs amounted to $528.9 million, $460.7 million and $417.6 million for the years ended December 31, 2023, 2022 and 2021, respectively. Advertising and promotional expenses that are not subject to FASB ASC 606 are included in operating expenses in the accompanying consolidated statements of income.Income Taxes - The Company utilizes the liability method of accounting for income taxes as set forth in FASB ASC 740. Under the liability method, deferred taxes are determined based on the temporary differences between the financial statement and tax basis of assets and liabilities using tax rates expected to be in effect during the years in which the basis differences reverse. A valuation allowance is recorded when it is more likely than not that some of the deferred tax assets will not be realized. In determining the need for valuation allowances the Company considers projected future taxable income and the availability of tax planning strategies. If in the future the Company determines that it would not be able to realize its recorded deferred tax assets, an increase in the valuation allowance would be recorded, decreasing earnings in the period in which such determination is made.The Company assesses its income tax positions and records tax benefits for all years subject to examination based upon the Company's evaluation of the facts, circumstances and information available at the reporting date. For those tax positions where there is a greater than 50% likelihood that a tax benefit will be sustained, the Company has recorded the largest amount of tax benefit that may potentially be realized upon ultimate settlement with a taxing authority that has full knowledge of all relevant information. For those income tax positions where there is less than 50% likelihood that a tax benefit will be sustained, no tax benefit has been recognized in the financial statements.Stock-Based Compensation - The Company accounts for stock-based compensation under the provisions of FASB ASC 718. The Company records compensation expense for employee stock options based on the estimated fair value of the options on the date of grant using the Black-Scholes-Merton option pricing formula. The Company records compensation expense for non-employee stock options based on the estimated fair value of the options as of the earlier of (1) the date at which a commitment for performance by the non-employee to earn the stock option is reached or (2) the date at which the non-employee's performance is complete, using the Black-Scholes-Merton option pricing formula. Stock-based compensation cost 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. See Note 16. store demonstration costs, costs for merchandise displays, point-of-sale materials and premium items, sponsorship expenses, other marketing expenses and design expenses. Operating expenses also include such costs as payroll costs, travel costs, professional service fees including legal fees, termination payments made to certain of the Company's prior distributors, impairment charges on intangible assets, depreciation and other general and administrative costs. Freight-Out Costs - For the years ended December 31, 2023, 2022 and 2021, freight-out costs amounted to $223.6 million, $249.2 million and $213.9 million, respectively, and have been recorded in operating expenses in the accompanying consolidated statements of income. Advertising and Promotional Expenses - The Company accounts for advertising production costs by expensing such production costs the first time the related advertising takes place. A significant amount of the Company's promotional expenses result from payments under sponsorship and endorsement contracts. Accounting for sponsorship and endorsement payments is based upon specific contract provisions. Generally, sponsorship and endorsement payments are expensed on a straight-line basis over the term of the contract after giving recognition to the periodic performance compliance provisions of the contracts. Advertising and promotional expenses, including, but not limited to, production costs amounted to $528.9 million, $460.7 million and $417.6 million for the years ended December 31, 2023, 2022 and 2021, respectively. Advertising and promotional expenses that are not subject to FASB ASC 606 are included in operating expenses in the accompanying consolidated statements of income. Income Taxes - The Company utilizes the liability method of accounting for income taxes as set forth in FASB ASC 740. Under the liability method, deferred taxes are determined based on the temporary differences between the financial statement and tax basis of assets and liabilities using tax rates expected to be in effect during the years in which the basis differences reverse. A valuation allowance is recorded when it is more likely than not that some of the deferred tax assets will not be realized. In determining the need for valuation allowances the Company considers projected future taxable income and the availability of tax planning strategies. If in the future the Company determines that it would not be able to realize its recorded deferred tax assets, an increase in the valuation allowance would be recorded, decreasing earnings in the period in which such determination is made. The Company assesses its income tax positions and records tax benefits for all years subject to examination based upon the Company's evaluation of the facts, circumstances and information available at the reporting date. For those tax positions where there is a greater than 50% likelihood that a tax benefit will be sustained, the Company has recorded the largest amount of tax benefit that may potentially be realized upon ultimate settlement with a taxing authority that has full knowledge of all relevant information. For those income tax positions where there is less than 50% likelihood that a tax benefit will be sustained, no tax benefit has been recognized in the financial statements. Stock-Based Compensation - The Company accounts for stock-based compensation under the provisions of FASB ASC 718. The Company records compensation expense for employee stock options based on the estimated fair value of the options on the date of grant using the Black-Scholes-Merton option pricing formula. The Company records compensation expense for non-employee stock options based on the estimated fair value of the options as of the earlier of (1) the date at which a commitment for performance by the non-employee to earn the stock option is reached or (2) the date at which the non-employee's performance is complete, using the Black-Scholes-Merton option pricing formula. Stock-based compensation cost 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. See Note 16. 92 92 Table of ContentsMONSTER BEVERAGE CORPORATION AND SUBSIDIARIESNOTES TO CONSOLIDATED FINANCIAL STATEMENTS(Tabular Dollars in Thousands, Except Per Share Amounts)​Net Income Per Common Share - In accordance with FASB ASC 260, net income per common share, on a basic and diluted basis, is presented for all periods. Basic net income per share is computed by dividing net income by the weighted average number of common shares outstanding during each period. Diluted net income per share is computed by dividing net income by the weighted average number of common and dilutive common equivalent shares outstanding. The calculation of common equivalent shares assumes the exercise of dilutive stock options, net of assumed treasury share repurchases at average market prices, as applicable.Concentration of Risk - Certain of the Company's products utilize components (raw materials and/or co-packing services) from a limited number of sources. A disruption in the supply of such components could significantly affect the Company's revenues from those products, as alternative sources of such components may not be available at commercially reasonable rates or within a reasonably short time period. The Company continues to endeavor to secure the availability of alternative sources for such components and minimize the risk of any disruption in production.The Coca-Cola Company ("TCCC"), through certain wholly-owned subsidiaries (the "TCCC Subsidiaries"), accounted for approximately 2% of the Company's net sales for the years ended December 31, 2023, 2022 and 2021.Coca-Cola Consolidated, Inc. accounted for approximately 10%, 11% and 12% of the Company's net sales for the years ended December 31, 2023, 2022 and 2021, respectively.Reyes Coca-Cola Bottling, LLC accounted for approximately 9%, 9% and 10% of the Company's net sales for the years ended December 31, 2023, 2022 and 2021, respectively.Coca-Cola Europacific Partners accounted for approximately 13%, 13% and 12% of the Company's net sales for the years ended December 31, 2023, 2022 and 2021, respectively.Credit Risk - The Company sells its products nationally and internationally, primarily to bottlers and full service beverage distributors ("bottlers/distributors"), retail grocery and specialty chains, wholesalers, club stores, mass merchandisers, convenience chains, drug stores, foodservice customers, value stores, e-commerce retailers and the military. The Company performs ongoing credit evaluations of its customers and generally does not require collateral. The Company maintains reserves for estimated credit losses, and historically, such losses have been within management's expectations.Fair Value of Financial Instruments - The carrying value of the Company's financial instruments, including cash and cash equivalents, accounts receivable, accounts payable and accrued liabilities, approximate fair value due to the relatively short maturity of the respective instruments.Use of Estimates - The preparation of the consolidated financial statements in conformity with GAAP 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 period. Actual results could differ from those estimates.Recent Accounting Pronouncements - In November 2023, the 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. 93 Table of ContentsMONSTER BEVERAGE CORPORATION AND SUBSIDIARIESNOTES TO CONSOLIDATED FINANCIAL STATEMENTS(Tabular Dollars in Thousands, Except Per Share Amounts)​ Table of Contents Table of Contents **Current (2025):** ​ Revenue Recognition - See Note 3.Cost of Sales - Cost of sales consists of the costs of flavors, concentrates, supplement ingredients and/or beverage bases, the costs of raw materials utilized in the manufacture of beverages, co-packing fees, repacking fees, in-bound freight charges, as well as internal transfer costs, warehouse expenses incurred prior to the manufacture of the Company's finished products and certain quality control costs. In addition, the Company includes in costs of sales certain costs such as depreciation, amortization and payroll costs that relate to the direct manufacture by the Company of certain flavors and concentrates. Raw materials account for the largest portion of cost of sales. Raw materials include cans, bottles, other containers, flavors, ingredients and packaging materials.Operating Expenses - Operating expenses include selling expenses such as distribution expenses to transport products to customers and warehousing expenses after manufacture, as well as expenses for advertising, sampling and in-store demonstration costs, costs for merchandise displays, point-of-sale materials and premium items, sponsorship expenses, other marketing expenses and design expenses. Operating expenses also include such costs as payroll costs, travel costs, professional service fees including legal fees, termination payments made to certain of the Company's prior distributors, impairment charges on goodwill and other intangible assets, depreciation and other general and administrative costs.Freight-Out Costs - For the years ended December 31, 2024, 2023 and 2022, freight-out costs amounted to $224.2 million, $223.6 million and $249.2 million, respectively, and have been recorded in operating expenses in the accompanying consolidated statements of income.Advertising and Promotional Expenses - The Company accounts for advertising production costs by expensing such production costs the first time the related advertising takes place. A significant amount of the Company's promotional expenses result from payments under sponsorship and endorsement contracts. Accounting for sponsorship and endorsement payments is based upon specific contract provisions. Generally, sponsorship and endorsement payments are expensed on a straight-line basis over the term of the contract after giving recognition to the periodic performance compliance provisions of the contracts. Advertising and promotional expenses, including, but not limited to, production costs amounted to $584.1 million, $528.9 million and $460.7 million for the years ended December 31, 2024, 2023 and 2022, respectively. Advertising and promotional expenses that are not subject to FASB ASC 606 are included in operating expenses in the accompanying consolidated statements of income.Income Taxes - The Company utilizes the liability method of accounting for income taxes as set forth in FASB ASC 740. Under the liability method, deferred taxes are determined based on the temporary differences between the financial statement and tax basis of assets and liabilities using tax rates expected to be in effect during the years in which the basis differences reverse. A valuation allowance is recorded when it is more likely than not that some of the deferred tax assets will not be realized. In determining the need for valuation allowances the Company considers projected future taxable income and the availability of tax planning strategies. If in the future the Company determines that it would not be able to realize its recorded deferred tax assets, an increase in the valuation allowance would be recorded, decreasing earnings in the period in which such determination is made.The Company assesses its income tax positions and records tax benefits for all years subject to examination based upon the Company's evaluation of the facts, circumstances and information available at the reporting date. For those tax positions where there is a greater than 50% likelihood that a tax benefit will be sustained, the Company has recorded the largest amount of tax benefit that may potentially be realized upon ultimate settlement with a taxing authority that has full knowledge of all relevant information. For those income tax positions where there is less than 50% likelihood that a tax benefit will be sustained, no tax benefit has been recognized in the financial statements. Revenue Recognition - See Note 3.Cost of Sales - Cost of sales consists of the costs of flavors, concentrates, supplement ingredients and/or beverage bases, the costs of raw materials utilized in the manufacture of beverages, co-packing fees, repacking fees, in-bound freight charges, as well as internal transfer costs, warehouse expenses incurred prior to the manufacture of the Company's finished products and certain quality control costs. In addition, the Company includes in costs of sales certain costs such as depreciation, amortization and payroll costs that relate to the direct manufacture by the Company of certain flavors and concentrates. Raw materials account for the largest portion of cost of sales. Raw materials include cans, bottles, other containers, flavors, ingredients and packaging materials.Operating Expenses - Operating expenses include selling expenses such as distribution expenses to transport products to customers and warehousing expenses after manufacture, as well as expenses for advertising, sampling and in-store demonstration costs, costs for merchandise displays, point-of-sale materials and premium items, sponsorship expenses, other marketing expenses and design expenses. Operating expenses also include such costs as payroll costs, travel costs, professional service fees including legal fees, termination payments made to certain of the Company's prior distributors, impairment charges on goodwill and other intangible assets, depreciation and other general and administrative costs.Freight-Out Costs - For the years ended December 31, 2024, 2023 and 2022, freight-out costs amounted to $224.2 million, $223.6 million and $249.2 million, respectively, and have been recorded in operating expenses in the accompanying consolidated statements of income.Advertising and Promotional Expenses - The Company accounts for advertising production costs by expensing such production costs the first time the related advertising takes place. A significant amount of the Company's promotional expenses result from payments under sponsorship and endorsement contracts. Accounting for sponsorship and endorsement payments is based upon specific contract provisions. Generally, sponsorship and endorsement payments are expensed on a straight-line basis over the term of the contract after giving recognition to the periodic performance compliance provisions of the contracts. Advertising and promotional expenses, including, but not limited to, production costs amounted to $584.1 million, $528.9 million and $460.7 million for the years ended December 31, 2024, 2023 and 2022, respectively. Advertising and promotional expenses that are not subject to FASB ASC 606 are included in operating expenses in the accompanying consolidated statements of income.Income Taxes - The Company utilizes the liability method of accounting for income taxes as set forth in FASB ASC 740. Under the liability method, deferred taxes are determined based on the temporary differences between the financial statement and tax basis of assets and liabilities using tax rates expected to be in effect during the years in which the basis differences reverse. A valuation allowance is recorded when it is more likely than not that some of the deferred tax assets will not be realized. In determining the need for valuation allowances the Company considers projected future taxable income and the availability of tax planning strategies. If in the future the Company determines that it would not be able to realize its recorded deferred tax assets, an increase in the valuation allowance would be recorded, decreasing earnings in the period in which such determination is made.The Company assesses its income tax positions and records tax benefits for all years subject to examination based upon the Company's evaluation of the facts, circumstances and information available at the reporting date. For those tax positions where there is a greater than 50% likelihood that a tax benefit will be sustained, the Company has recorded the largest amount of tax benefit that may potentially be realized upon ultimate settlement with a taxing authority that has full knowledge of all relevant information. For those income tax positions where there is less than 50% likelihood that a tax benefit will be sustained, no tax benefit has been recognized in the financial statements. Revenue Recognition - See Note 3. Cost of Sales - Cost of sales consists of the costs of flavors, concentrates, supplement ingredients and/or beverage bases, the costs of raw materials utilized in the manufacture of beverages, co-packing fees, repacking fees, in-bound freight charges, as well as internal transfer costs, warehouse expenses incurred prior to the manufacture of the Company's finished products and certain quality control costs. In addition, the Company includes in costs of sales certain costs such as depreciation, amortization and payroll costs that relate to the direct manufacture by the Company of certain flavors and concentrates. Raw materials account for the largest portion of cost of sales. Raw materials include cans, bottles, other containers, flavors, ingredients and packaging materials. Operating Expenses - Operating expenses include selling expenses such as distribution expenses to transport products to customers and warehousing expenses after manufacture, as well as expenses for advertising, sampling and in-store demonstration costs, costs for merchandise displays, point-of-sale materials and premium items, sponsorship expenses, other marketing expenses and design expenses. Operating expenses also include such costs as payroll costs, travel costs, professional service fees including legal fees, termination payments made to certain of the Company's prior distributors, impairment charges on goodwill and other intangible assets, depreciation and other general and administrative costs. Freight-Out Costs - For the years ended December 31, 2024, 2023 and 2022, freight-out costs amounted to $224.2 million, $223.6 million and $249.2 million, respectively, and have been recorded in operating expenses in the accompanying consolidated statements of income. Advertising and Promotional Expenses - The Company accounts for advertising production costs by expensing such production costs the first time the related advertising takes place. A significant amount of the Company's promotional expenses result from payments under sponsorship and endorsement contracts. Accounting for sponsorship and endorsement payments is based upon specific contract provisions. Generally, sponsorship and endorsement payments are expensed on a straight-line basis over the term of the contract after giving recognition to the periodic performance compliance provisions of the contracts. Advertising and promotional expenses, including, but not limited to, production costs amounted to $584.1 million, $528.9 million and $460.7 million for the years ended December 31, 2024, 2023 and 2022, respectively. Advertising and promotional expenses that are not subject to FASB ASC 606 are included in operating expenses in the accompanying consolidated statements of income. Income Taxes - The Company utilizes the liability method of accounting for income taxes as set forth in FASB ASC 740. Under the liability method, deferred taxes are determined based on the temporary differences between the financial statement and tax basis of assets and liabilities using tax rates expected to be in effect during the years in which the basis differences reverse. A valuation allowance is recorded when it is more likely than not that some of the deferred tax assets will not be realized. In determining the need for valuation allowances the Company considers projected future taxable income and the availability of tax planning strategies. If in the future the Company determines that it would not be able to realize its recorded deferred tax assets, an increase in the valuation allowance would be recorded, decreasing earnings in the period in which such determination is made. The Company assesses its income tax positions and records tax benefits for all years subject to examination based upon the Company's evaluation of the facts, circumstances and information available at the reporting date. For those tax positions where there is a greater than 50% likelihood that a tax benefit will be sustained, the Company has recorded the largest amount of tax benefit that may potentially be realized upon ultimate settlement with a taxing authority that has full knowledge of all relevant information. For those income tax positions where there is less than 50% likelihood that a tax benefit will be sustained, no tax benefit has been recognized in the financial statements. 86 86 Table of ContentsMONSTER BEVERAGE CORPORATION AND SUBSIDIARIESNOTES TO CONSOLIDATED FINANCIAL STATEMENTS(Tabular Dollars in Thousands, Except Per Share Amounts)​Stock-Based Compensation - The Company accounts for stock-based compensation under the provisions of FASB ASC 718. The Company records compensation expense for employee stock options based on the estimated fair value of the options on the date of grant using the Black-Scholes-Merton option pricing formula. The Company records compensation expense for non-employee stock options based on the estimated fair value of the options as of the earlier of (1) the date at which a commitment for performance by the non-employee to earn the stock option is reached or (2) the date at which the non-employee's performance is complete, using the Black-Scholes-Merton option pricing formula. Stock-based compensation cost 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. See Note 16.Net Income Per Common Share - In accordance with FASB ASC 260, net income per common share, on a basic and diluted basis, is presented for all periods. Basic net income per share is computed by dividing net income by the weighted average number of common shares outstanding during each period. Diluted net income per share is computed by dividing net income by the weighted average number of common and dilutive common equivalent shares outstanding. The calculation of common equivalent shares assumes the exercise of dilutive stock options, net of assumed treasury share repurchases at average market prices, as applicable.Concentration of Risk - Certain of the Company's products utilize components (raw materials and/or co-packing services) from a limited number of sources. A disruption in the supply of such components could significantly affect the Company's revenues from those products, as alternative sources of such components may not be available at commercially reasonable rates or within a reasonably short time period. The Company continues to endeavor to secure the availability of alternative sources for such components and minimize the risk of any disruption in production.The Coca-Cola Company ("TCCC"), through certain wholly-owned subsidiaries (the "TCCC Subsidiaries"), accounted for approximately 3%, 2% and 2% of the Company's net sales for the years ended December 31, 2024, 2023 and 2022, respectively.Coca-Cola Europacific Partners accounted for approximately 14%, 13% and 13% of the Company's net sales for the years ended December 31, 2024, 2023 and 2022, respectively.Coca-Cola Consolidated, Inc. accounted for approximately 10%, 10% and 11% of the Company's net sales for the years ended December 31, 2024, 2023 and 2022, respectively.Reyes Holdings, LLC accounted for approximately 9% of the Company's net sales for the years ended December 31, 2024, 2023 and 2022.Credit Risk - The Company sells its products nationally and internationally, primarily to bottlers and full service beverage distributors ("bottlers/distributors"), 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 performs ongoing credit evaluations of its customers and generally does not require collateral. The Company maintains reserves for estimated credit losses, and historically, such losses have been within management's expectations.Fair Value of Financial Instruments - The carrying value of the Company's financial instruments, including cash and cash equivalents, accounts receivable, accounts payable and accrued liabilities, approximate fair value due to the relatively short maturity of the respective instruments.Use of Estimates - The preparation of the consolidated financial statements in conformity with GAAP 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 period. Actual results could differ from those estimates.87 Table of ContentsMONSTER BEVERAGE CORPORATION AND SUBSIDIARIESNOTES TO CONSOLIDATED FINANCIAL STATEMENTS(Tabular Dollars in Thousands, Except Per Share Amounts)​ Table of Contents Table of Contents --- ## Modified: Basis for Opinion **Key changes:** - Reworded sentence: "These financial statements are the responsibility of the Company's management." - Reworded sentence: "We conducted our audits in accordance with the standards of the PCAOB." - Reworded sentence: "Our audits included performing procedures to assess the risks of material misstatement of the financial statements, whether due to error or fraud, and performing procedures that respond to those risks." - Reworded sentence: "Our audits also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the financial statements." **Prior (2024):** These financial statements are the responsibility of the Company's management. Our responsibility is to express an opinion on the Company's financial statements based on our audit. We are a public accounting firm registered with the PCAOB and are required to be independent with respect to the Company in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB. We conducted our audit in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement, whether due to error or fraud. Our audit included performing procedures to assess the risks of material misstatement of the financial statements, whether due to error or fraud, and performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements. Our audit also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the financial statements. We believe that our audit provides a reasonable basis for our opinion. **Current (2025):** These financial statements are the responsibility of the Company's management. Our responsibility is to express an opinion on the Company's financial statements based on our audits. We are a public accounting firm registered with the PCAOB and are required to be independent with respect to the Company in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB. We conducted our audits in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement, whether due to error or fraud. Our audits included performing procedures to assess the risks of material misstatement of the financial statements, whether due to error or fraud, and performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements. Our audits also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the financial statements. We believe that our audits provide a reasonable basis for our opinion. --- ## Modified: (Tabular Dollars in Thousands, Except Per Share Amounts) **Key changes:** - Reworded sentence: "​ Other Intangibles - Other Intangibles are comprised primarily of trademarks that represent the Company's exclusive ownership of the Monster Energy®, ®, Monster Energy Ultra®, Unleash the Beast!®, Rehab Monster®, Java Monster®, Punch Monster®, Juice Monster®, Monster Energy® Nitro, Reign Total Body Fuel®, Reign Inferno®, Reign Storm®, Predator®, Fury®, NOS®, Full Throttle®, Burn®, Mother®, Nalu®, Ultra Energy®, Play® and Power Play® (stylized), Relentless®, BPM®, BU®, Samurai®, Bang Energy®, Monster Tour Water®, Oskar Blues Brewery®, Cigar City®, Deep Ellum Brewing Co®, Perrin Brewing Company®, Squatters®, Wasatch®, Jai Alai®, Dale's Pale Ale®, Dallas Blonde®, Wild Basin®, Dale's®, Mama's Little Yella Pils®, Hop Rising®, The BeastTM, The Beast Unleashed® and Nasty Beast® Hard Tea trademarks, all used in connection with the manufacture, sale and distribution of beverages." - Reworded sentence: "External legal costs incurred in the defense of the Company's trademarks are capitalized when the future economic benefit of the intangible asset will be increased, and a successful defense is probable." - Reworded sentence: "For the years ended December 31, 2024, 2023 and 2022, impairment charges of $40.8 million, $38.7 million and $2.2 million, respectively, were recorded to indefinite-lived intangibles.The Company presently has more than 21,400 registered trademarks and pending applications in various countries worldwide, and the Company applies for new trademarks on an ongoing basis." - Reworded sentence: "The Company considers Monster®, Monster Energy®, ®, Monster Energy Ultra®, Unleash the Beast!®, Rehab Monster®, Java Monster®, Punch Monster®, Juice Monster®, Monster Energy® Nitro, Reign Total Body Fuel®, Reign Inferno®, Reign Storm®, BU®, Nalu®, NOS®, Full Throttle®, Burn®, Mother®, Ultra Energy®, Play® and Power Play® (stylized), Relentless®, Predator®, Fury®, Live+®, BPM®, Samurai®, Bang Energy®, Monster Tour Water®, Oskar Blues Brewery®, Cigar City®, Deep Ellum Brewing Co®, Perrin Brewing Company®, Squatters®, Wasatch®, Jai Alai®, Dale's Pale Ale®, Dallas Blonde®, Wild Basin®, Dale's®, Hop Rising®, The BeastTM, The Beast Unleashed® and Nasty Beast® Hard Tea to be its core trademarks." - Reworded sentence: "Other Intangibles - Other Intangibles are comprised primarily of trademarks that represent the Company's exclusive ownership of the Monster Energy®, ®, Monster Energy Ultra®, Unleash the Beast!®, Rehab Monster®, Java Monster®, Punch Monster®, Juice Monster®, Monster Energy® Nitro, Reign Total Body Fuel®, Reign Inferno®, Reign Storm®, Predator®, Fury®, NOS®, Full Throttle®, Burn®, Mother®, Nalu®, Ultra Energy®, Play® and Power Play® (stylized), Relentless®, BPM®, BU®, Samurai®, Bang Energy®, Monster Tour Water®, Oskar Blues Brewery®, Cigar City®, Deep Ellum Brewing Co®, Perrin Brewing Company®, Squatters®, Wasatch®, Jai Alai®, Dale's Pale Ale®, Dallas Blonde®, Wild Basin®, Dale's®, Mama's Little Yella Pils®, Hop Rising®, The BeastTM, The Beast Unleashed® and Nasty Beast® Hard Tea trademarks, all used in connection with the manufacture, sale and distribution of beverages." **Prior (2024):** ​ Property and Equipment - Property and equipment are stated at cost. Depreciation of furniture and fixtures, office and computer equipment, computer software, equipment, real property and vehicles is based on their estimated useful lives (three to thirty years) and is calculated using the straight-line method. Amortization of leasehold improvements is based on the lesser of their estimated useful lives or the terms of the related leases and is calculated using the straight-line method. Normal repairs and maintenance costs are expensed as incurred. Expenditures that materially increase values or extend useful lives are capitalized. The related costs and accumulated depreciation of disposed assets are eliminated and any resulting gain or loss on disposition is included in net income.Goodwill - The Company records goodwill when the consideration paid for an acquisition exceeds the fair value of net tangible and intangible assets acquired, including related tax effects. Goodwill is not amortized; instead, goodwill is tested for impairment on an annual basis, or more frequently if the Company believes indicators of impairment exist. The Company first assesses qualitative factors to determine whether it is more-likely-than-not that the fair value of a reporting unit is less than its carrying value. If the Company reasonably determines that it is more-likely-than-not that the fair value is less than the carrying value, the Company performs its annual, or interim, goodwill impairment test by comparing the fair value of a reporting unit with its carrying amount. The Company will recognize an impairment for the amount by which the carrying amount exceeds a reporting unit's fair value. For the years ended December 31, 2023, 2022 and 2021 there were no goodwill impairments recorded and there are no accumulated impairment balances.Other Intangibles - Other Intangibles are comprised primarily of trademarks that represent the Company's exclusive ownership of the Monster Energy®, ®, Monster Energy Ultra®, Unleash the Beast!®, Rehab® Monster®, Java Monster®, Punch Monster®, Juice Monster®, Monster Energy® Nitro, Reign Total Body Fuel®, Reign Inferno®, Reign Storm®, Predator®, Fury®, NOS®, Full Throttle®, Burn®, Mother®, Nalu®, Ultra Energy®, Play® and Power Play® (stylized), Relentless®, BPM®, BU®, Samurai®, Bang Energy®, Monster Tour Water®, Oskar Blues Brewery®, Cigar City®, Deep Ellum Brewing Co®, Perrin Brewing Company®, Squatters®, Wasatch®, Jai Alai®, Dale's Pale Ale®, Dallas Blonde®, Wild Basin®, Dale's®, Mama's Little Yella Pils®, Hop Rising®, The Beast Unleashed® and Nasty BeastTM Hard Tea trademarks, all used in connection with the manufacture, sale and distribution of beverages. The Company also owns a number of other trademarks, flavors and formulas in the United States, as well as in a number of countries around the world. In accordance with FASB ASC 350, intangible assets with indefinite lives are not amortized but instead are measured for impairment at least annually, or when events indicate that an impairment exists. The Company calculates impairment as the excess of the carrying value of its indefinite-lived assets over their estimated fair value. If the carrying value exceeds the estimate of fair value a write-down is recorded. The Company amortizes its trademarks with finite useful lives over their respective useful lives. External legal costs incurred in the defense of the Company's trademarks are capitalized when the future economic benefit of the intangible asset will be increased, and a successful defense is probable. In the event of a successful defense, the settlements received are netted against the external legal costs that were capitalized. The external legal costs incurred and settlements received may not occur in the same period. For the years ended December 31, 2023 and 2022, impairment charges of $38.7 million and $2.2 million, respectively, were recorded to indefinite-lived intangibles. For the year ended December 31, 2021, no impairments were recorded.The Company presently has more than 21,300 registered trademarks and pending applications in various countries worldwide, and the Company applies for new trademarks on an ongoing basis. The Company regards its trademarks, service marks, copyrights, domain names, trade dress and other intellectual property as very important to its business. The Company considers Monster®, Monster Energy®, ®, Monster Energy Ultra®, Unleash the Beast!®, Rehab® Monster®, Java Monster®, Punch Monster®, Juice Monster®, Monster Energy® Nitro, Reign Total Body Fuel®, Reign Inferno®, Reign Storm®, BU®, Nalu®, NOS®, Full Throttle®, Burn®, Mother®, Ultra Energy®, Play® and Power Play® (stylized), Relentless®, Predator®, Fury®, Live+®, BPM®, Samurai®, Bang Energy®, Monster Tour Water®, Oskar Blues Brewery®, Cigar City®, Deep Ellum Brewing Co®, Perrin Brewing Company®, Squatters®, Wasatch®, Jai Alai®, Dale's Property and Equipment - Property and equipment are stated at cost. Depreciation of furniture and fixtures, office and computer equipment, computer software, equipment, real property and vehicles is based on their estimated useful lives (three to thirty years) and is calculated using the straight-line method. Amortization of leasehold improvements is based on the lesser of their estimated useful lives or the terms of the related leases and is calculated using the straight-line method. Normal repairs and maintenance costs are expensed as incurred. Expenditures that materially increase values or extend useful lives are capitalized. The related costs and accumulated depreciation of disposed assets are eliminated and any resulting gain or loss on disposition is included in net income. three Goodwill - The Company records goodwill when the consideration paid for an acquisition exceeds the fair value of net tangible and intangible assets acquired, including related tax effects. Goodwill is not amortized; instead, goodwill is tested for impairment on an annual basis, or more frequently if the Company believes indicators of impairment exist. The Company first assesses qualitative factors to determine whether it is more-likely-than-not that the fair value of a reporting unit is less than its carrying value. If the Company reasonably determines that it is more-likely-than-not that the fair value is less than the carrying value, the Company performs its annual, or interim, goodwill impairment test by comparing the fair value of a reporting unit with its carrying amount. The Company will recognize an impairment for the amount by which the carrying amount exceeds a reporting unit's fair value. For the years ended December 31, 2023, 2022 and 2021 there were no goodwill impairments recorded and there are no accumulated impairment balances. Other Intangibles - Other Intangibles are comprised primarily of trademarks that represent the Company's exclusive ownership of the Monster Energy®, ®, Monster Energy Ultra®, Unleash the Beast!®, Rehab® Monster®, Java Monster®, Punch Monster®, Juice Monster®, Monster Energy® Nitro, Reign Total Body Fuel®, Reign Inferno®, Reign Storm®, Predator®, Fury®, NOS®, Full Throttle®, Burn®, Mother®, Nalu®, Ultra Energy®, Play® and Power Play® (stylized), Relentless®, BPM®, BU®, Samurai®, Bang Energy®, Monster Tour Water®, Oskar Blues Brewery®, Cigar City®, Deep Ellum Brewing Co®, Perrin Brewing Company®, Squatters®, Wasatch®, Jai Alai®, Dale's Pale Ale®, Dallas Blonde®, Wild Basin®, Dale's®, Mama's Little Yella Pils®, Hop Rising®, The Beast Unleashed® and Nasty BeastTM Hard Tea trademarks, all used in connection with the manufacture, sale and distribution of beverages. The Company also owns a number of other trademarks, flavors and formulas in the United States, as well as in a number of countries around the world. In accordance with FASB ASC 350, intangible assets with indefinite lives are not amortized but instead are measured for impairment at least annually, or when events indicate that an impairment exists. The Company calculates impairment as the excess of the carrying value of its indefinite-lived assets over their estimated fair value. If the carrying value exceeds the estimate of fair value a write-down is recorded. The Company amortizes its trademarks with finite useful lives over their respective useful lives. External legal costs incurred in the defense of the Company's trademarks are capitalized when the future economic benefit of the intangible asset will be increased, and a successful defense is probable. In the event of a successful defense, the settlements received are netted against the external legal costs that were capitalized. The external legal costs incurred and settlements received may not occur in the same period. For the years ended December 31, 2023 and 2022, impairment charges of $38.7 million and $2.2 million, respectively, were recorded to indefinite-lived intangibles. For the year ended December 31, 2021, no impairments were recorded. The Company presently has more than 21,300 registered trademarks and pending applications in various countries worldwide, and the Company applies for new trademarks on an ongoing basis. The Company regards its trademarks, service marks, copyrights, domain names, trade dress and other intellectual property as very important to its business. The Company considers Monster®, Monster Energy®, ®, Monster Energy Ultra®, Unleash the Beast!®, Rehab® Monster®, Java Monster®, Punch Monster®, Juice Monster®, Monster Energy® Nitro, Reign Total Body Fuel®, Reign Inferno®, Reign Storm®, BU®, Nalu®, NOS®, Full Throttle®, Burn®, Mother®, Ultra Energy®, Play® and Power Play® (stylized), Relentless®, Predator®, Fury®, Live+®, BPM®, Samurai®, Bang Energy®, Monster Tour Water®, Oskar Blues Brewery®, Cigar City®, Deep Ellum Brewing Co®, Perrin Brewing Company®, Squatters®, Wasatch®, Jai Alai®, Dale's 89 89 Table of ContentsMONSTER BEVERAGE CORPORATION AND SUBSIDIARIESNOTES TO CONSOLIDATED FINANCIAL STATEMENTS(Tabular Dollars in Thousands, Except Per Share Amounts)​Pale Ale®, Dallas Blonde®, Wild Basin®, Dale's®, Hop Rising®, The Beast Unleashed® and Nasty BeastTM Hard Tea to be its core trademarks. The Company also owns the intellectual property of its most important flavors for certain of its Monster Energy® Brand energy drinks in perpetuity.Leases - The Company leases identified assets comprised of real estate and equipment. Real estate leases consist primarily of office and warehouse space and equipment leases consist of vehicles and warehouse equipment. At the inception of a contract, the Company assesses whether the contract is, or contains, a lease. The Company's assessment is based on: (1) whether the contract involves the use of a distinct identified asset, (2) whether the Company obtains the right to substantially all the economic benefit from the use of the asset throughout the term, and (3) whether the Company has the right to direct the use of the asset. At inception of a lease, the Company allocates the consideration in the contract to each lease and non-lease component based on the component's relative stand-alone price to determine the lease payments. Lease and non-lease components are accounted for separately.Leases are classified as either finance leases or operating leases based on criteria in FASB ASC 842, "Leases". The Company's operating leases are comprised of real estate and warehouse equipment, and the Company's finance leases are comprised of vehicles. Right-of-use ("ROU") assets and lease liabilities are recognized at the lease commencement date based on the present value of lease payments over the lease term. As the Company's leases generally do not provide an implicit rate, the Company uses its incremental borrowing rate based on the estimated rate of interest for collateralized borrowing over a similar term of the lease payments at the commencement date. ROU assets also include any lease payments made and exclude lease incentives. Lease terms include options to extend or terminate the lease when it is reasonably certain that the Company will exercise that option. The Company has elected not to recognize ROU assets and lease liabilities for short-term operating leases that have a term of 12 months or less. Certain of the Company's real estate leases contain variable lease payments, including payments based on an index or rate. Variable lease payments based on an index or rate are initially measured using the index or rate in effect at the lease commencement date. Additional payments based on the change in an index or rate, or payments based on a change in the Company's portion of real estate taxes and insurance, are recorded as a period expense when incurred. Lease expense for operating leases, consisting of lease payments, is recognized on a straight-line basis over the lease term and is included in operating expenses in the consolidated statements of income. Lease expense for finance leases consists of the amortization of the ROU asset on a straight-line basis over the asset's estimated useful life and is included in operating expenses in the consolidated statement of income. Interest expense on finance leases is calculated using the amortized cost basis and is included in interest and other income (expense), net in the consolidated statements of income.Long-Lived Assets - Management regularly reviews property and equipment and other long-lived assets, including certain definite-lived intangible assets, for possible impairment. This review occurs annually, or more frequently if events or changes in circumstances indicate the carrying amount of the asset may not be recoverable. If there is indication of impairment, management then prepares an estimate of future cash flows (undiscounted and without interest charges) expected to result from the use of the asset and its eventual disposition. If these cash flows are less than the carrying amount of the asset, an impairment loss is recognized to write down the asset to its estimated fair value. The fair value is estimated using the present value of the future cash flows discounted at a rate commensurate with management's estimates of the business risks. Preparation of estimated expected future cash flows is inherently subjective and is based on management's best estimate of assumptions concerning expected future conditions. For the year ended December 31, 2023, an impairment charge of $4.3 million was recognized on property and equipment related to the Company's alcohol products. For the years ended December 31, 2022 and 2021 there were no impairment indicators identified. Long-lived assets held for sale are recorded at the lower of their carrying amount or fair value less cost to sell.90 Table of ContentsMONSTER BEVERAGE CORPORATION AND SUBSIDIARIESNOTES TO CONSOLIDATED FINANCIAL STATEMENTS(Tabular Dollars in Thousands, Except Per Share Amounts)​ Table of Contents Table of Contents **Current (2025):** ​ Other Intangibles - Other Intangibles are comprised primarily of trademarks that represent the Company's exclusive ownership of the Monster Energy®, ®, Monster Energy Ultra®, Unleash the Beast!®, Rehab Monster®, Java Monster®, Punch Monster®, Juice Monster®, Monster Energy® Nitro, Reign Total Body Fuel®, Reign Inferno®, Reign Storm®, Predator®, Fury®, NOS®, Full Throttle®, Burn®, Mother®, Nalu®, Ultra Energy®, Play® and Power Play® (stylized), Relentless®, BPM®, BU®, Samurai®, Bang Energy®, Monster Tour Water®, Oskar Blues Brewery®, Cigar City®, Deep Ellum Brewing Co®, Perrin Brewing Company®, Squatters®, Wasatch®, Jai Alai®, Dale's Pale Ale®, Dallas Blonde®, Wild Basin®, Dale's®, Mama's Little Yella Pils®, Hop Rising®, The BeastTM, The Beast Unleashed® and Nasty Beast® Hard Tea trademarks, all used in connection with the manufacture, sale and distribution of beverages. The Company also owns a number of other trademarks, flavors and formulas in the United States, as well as in a number of countries around the world. In accordance with FASB ASC 350, intangible assets with indefinite lives are not amortized but instead are measured for impairment at least annually, or when events indicate that an impairment exists. The Company calculates impairment as the excess of the carrying value of its indefinite-lived assets over their estimated fair value. If the carrying value exceeds the estimate of fair value a write-down is recorded. The Company amortizes its trademarks with finite useful lives over their respective useful lives. External legal costs incurred in the defense of the Company's trademarks are capitalized when the future economic benefit of the intangible asset will be increased, and a successful defense is probable. In the event of a successful defense, the settlements received are netted against the external legal costs that were capitalized. The external legal costs incurred and settlements received may not occur in the same period. For the years ended December 31, 2024, 2023 and 2022, impairment charges of $40.8 million, $38.7 million and $2.2 million, respectively, were recorded to indefinite-lived intangibles.The Company presently has more than 21,400 registered trademarks and pending applications in various countries worldwide, and the Company applies for new trademarks on an ongoing basis. The Company regards its trademarks, service marks, copyrights, domain names, trade dress and other intellectual property as very important to its business. The Company considers Monster®, Monster Energy®, ®, Monster Energy Ultra®, Unleash the Beast!®, Rehab Monster®, Java Monster®, Punch Monster®, Juice Monster®, Monster Energy® Nitro, Reign Total Body Fuel®, Reign Inferno®, Reign Storm®, BU®, Nalu®, NOS®, Full Throttle®, Burn®, Mother®, Ultra Energy®, Play® and Power Play® (stylized), Relentless®, Predator®, Fury®, Live+®, BPM®, Samurai®, Bang Energy®, Monster Tour Water®, Oskar Blues Brewery®, Cigar City®, Deep Ellum Brewing Co®, Perrin Brewing Company®, Squatters®, Wasatch®, Jai Alai®, Dale's Pale Ale®, Dallas Blonde®, Wild Basin®, Dale's®, Hop Rising®, The BeastTM, The Beast Unleashed® and Nasty Beast® Hard Tea to be its core trademarks. The Company also owns the intellectual property of its most important flavors for certain of its Monster Energy® Brand energy drinks in perpetuity.Leases - The Company leases identified assets comprised of real estate and equipment. Real estate leases consist primarily of office and warehouse space and equipment leases consist of vehicles and warehouse equipment. At the inception of a contract, the Company assesses whether the contract is, or contains, a lease. The Company's assessment is based on: (1) whether the contract involves the use of a distinct identified asset, (2) whether the Company obtains the right to substantially all the economic benefit from the use of the asset throughout the term, and (3) whether the Company has the right to direct the use of the asset. At inception of a lease, the Company allocates the consideration in the contract to each lease and non-lease component based on the component's relative stand-alone price to determine the lease payments. Lease and non-lease components are accounted for separately.Leases are classified as either finance leases or operating leases based on criteria in FASB ASC 842, "Leases". The Company's operating leases are comprised of real estate and warehouse equipment, and the Company's finance leases are comprised of vehicles. Right-of-use ("ROU") assets and lease liabilities are recognized at the lease commencement date based on the present value of lease payments over the lease term. As the Company's leases generally do not provide an implicit rate, the Company uses its incremental borrowing rate based on the estimated rate of interest for collateralized borrowing over a similar term of the lease payments at the commencement date. ROU assets also include any lease payments made and exclude lease incentives. Lease terms include options to extend or terminate the lease when it is reasonably certain that the Company will exercise that option. The Company has elected not to recognize ROU assets and lease liabilities for short-term operating leases that have a term of 12 months or less. Certain of the Company's real estate leases contain variable lease payments, including payments based on an index or rate. Variable lease payments based on an index or rate are initially measured using the index or rate in effect at the lease commencement date. Additional payments based on the change in an index or rate, or payments based on a change in the Company's portion of real estate taxes and insurance, are recorded as a period expense when incurred. Other Intangibles - Other Intangibles are comprised primarily of trademarks that represent the Company's exclusive ownership of the Monster Energy®, ®, Monster Energy Ultra®, Unleash the Beast!®, Rehab Monster®, Java Monster®, Punch Monster®, Juice Monster®, Monster Energy® Nitro, Reign Total Body Fuel®, Reign Inferno®, Reign Storm®, Predator®, Fury®, NOS®, Full Throttle®, Burn®, Mother®, Nalu®, Ultra Energy®, Play® and Power Play® (stylized), Relentless®, BPM®, BU®, Samurai®, Bang Energy®, Monster Tour Water®, Oskar Blues Brewery®, Cigar City®, Deep Ellum Brewing Co®, Perrin Brewing Company®, Squatters®, Wasatch®, Jai Alai®, Dale's Pale Ale®, Dallas Blonde®, Wild Basin®, Dale's®, Mama's Little Yella Pils®, Hop Rising®, The BeastTM, The Beast Unleashed® and Nasty Beast® Hard Tea trademarks, all used in connection with the manufacture, sale and distribution of beverages. The Company also owns a number of other trademarks, flavors and formulas in the United States, as well as in a number of countries around the world. In accordance with FASB ASC 350, intangible assets with indefinite lives are not amortized but instead are measured for impairment at least annually, or when events indicate that an impairment exists. The Company calculates impairment as the excess of the carrying value of its indefinite-lived assets over their estimated fair value. If the carrying value exceeds the estimate of fair value a write-down is recorded. The Company amortizes its trademarks with finite useful lives over their respective useful lives. External legal costs incurred in the defense of the Company's trademarks are capitalized when the future economic benefit of the intangible asset will be increased, and a successful defense is probable. In the event of a successful defense, the settlements received are netted against the external legal costs that were capitalized. The external legal costs incurred and settlements received may not occur in the same period. For the years ended December 31, 2024, 2023 and 2022, impairment charges of $40.8 million, $38.7 million and $2.2 million, respectively, were recorded to indefinite-lived intangibles.The Company presently has more than 21,400 registered trademarks and pending applications in various countries worldwide, and the Company applies for new trademarks on an ongoing basis. The Company regards its trademarks, service marks, copyrights, domain names, trade dress and other intellectual property as very important to its business. The Company considers Monster®, Monster Energy®, ®, Monster Energy Ultra®, Unleash the Beast!®, Rehab Monster®, Java Monster®, Punch Monster®, Juice Monster®, Monster Energy® Nitro, Reign Total Body Fuel®, Reign Inferno®, Reign Storm®, BU®, Nalu®, NOS®, Full Throttle®, Burn®, Mother®, Ultra Energy®, Play® and Power Play® (stylized), Relentless®, Predator®, Fury®, Live+®, BPM®, Samurai®, Bang Energy®, Monster Tour Water®, Oskar Blues Brewery®, Cigar City®, Deep Ellum Brewing Co®, Perrin Brewing Company®, Squatters®, Wasatch®, Jai Alai®, Dale's Pale Ale®, Dallas Blonde®, Wild Basin®, Dale's®, Hop Rising®, The BeastTM, The Beast Unleashed® and Nasty Beast® Hard Tea to be its core trademarks. The Company also owns the intellectual property of its most important flavors for certain of its Monster Energy® Brand energy drinks in perpetuity.Leases - The Company leases identified assets comprised of real estate and equipment. Real estate leases consist primarily of office and warehouse space and equipment leases consist of vehicles and warehouse equipment. At the inception of a contract, the Company assesses whether the contract is, or contains, a lease. The Company's assessment is based on: (1) whether the contract involves the use of a distinct identified asset, (2) whether the Company obtains the right to substantially all the economic benefit from the use of the asset throughout the term, and (3) whether the Company has the right to direct the use of the asset. At inception of a lease, the Company allocates the consideration in the contract to each lease and non-lease component based on the component's relative stand-alone price to determine the lease payments. Lease and non-lease components are accounted for separately.Leases are classified as either finance leases or operating leases based on criteria in FASB ASC 842, "Leases". The Company's operating leases are comprised of real estate and warehouse equipment, and the Company's finance leases are comprised of vehicles. Right-of-use ("ROU") assets and lease liabilities are recognized at the lease commencement date based on the present value of lease payments over the lease term. As the Company's leases generally do not provide an implicit rate, the Company uses its incremental borrowing rate based on the estimated rate of interest for collateralized borrowing over a similar term of the lease payments at the commencement date. ROU assets also include any lease payments made and exclude lease incentives. Lease terms include options to extend or terminate the lease when it is reasonably certain that the Company will exercise that option. The Company has elected not to recognize ROU assets and lease liabilities for short-term operating leases that have a term of 12 months or less. Certain of the Company's real estate leases contain variable lease payments, including payments based on an index or rate. Variable lease payments based on an index or rate are initially measured using the index or rate in effect at the lease commencement date. Additional payments based on the change in an index or rate, or payments based on a change in the Company's portion of real estate taxes and insurance, are recorded as a period expense when incurred. Other Intangibles - Other Intangibles are comprised primarily of trademarks that represent the Company's exclusive ownership of the Monster Energy®, ®, Monster Energy Ultra®, Unleash the Beast!®, Rehab Monster®, Java Monster®, Punch Monster®, Juice Monster®, Monster Energy® Nitro, Reign Total Body Fuel®, Reign Inferno®, Reign Storm®, Predator®, Fury®, NOS®, Full Throttle®, Burn®, Mother®, Nalu®, Ultra Energy®, Play® and Power Play® (stylized), Relentless®, BPM®, BU®, Samurai®, Bang Energy®, Monster Tour Water®, Oskar Blues Brewery®, Cigar City®, Deep Ellum Brewing Co®, Perrin Brewing Company®, Squatters®, Wasatch®, Jai Alai®, Dale's Pale Ale®, Dallas Blonde®, Wild Basin®, Dale's®, Mama's Little Yella Pils®, Hop Rising®, The BeastTM, The Beast Unleashed® and Nasty Beast® Hard Tea trademarks, all used in connection with the manufacture, sale and distribution of beverages. The Company also owns a number of other trademarks, flavors and formulas in the United States, as well as in a number of countries around the world. In accordance with FASB ASC 350, intangible assets with indefinite lives are not amortized but instead are measured for impairment at least annually, or when events indicate that an impairment exists. The Company calculates impairment as the excess of the carrying value of its indefinite-lived assets over their estimated fair value. If the carrying value exceeds the estimate of fair value a write-down is recorded. The Company amortizes its trademarks with finite useful lives over their respective useful lives. External legal costs incurred in the defense of the Company's trademarks are capitalized when the future economic benefit of the intangible asset will be increased, and a successful defense is probable. In the event of a successful defense, the settlements received are netted against the external legal costs that were capitalized. The external legal costs incurred and settlements received may not occur in the same period. For the years ended December 31, 2024, 2023 and 2022, impairment charges of $40.8 million, $38.7 million and $2.2 million, respectively, were recorded to indefinite-lived intangibles. The Company presently has more than 21,400 registered trademarks and pending applications in various countries worldwide, and the Company applies for new trademarks on an ongoing basis. The Company regards its trademarks, service marks, copyrights, domain names, trade dress and other intellectual property as very important to its business. The Company considers Monster®, Monster Energy®, ®, Monster Energy Ultra®, Unleash the Beast!®, Rehab Monster®, Java Monster®, Punch Monster®, Juice Monster®, Monster Energy® Nitro, Reign Total Body Fuel®, Reign Inferno®, Reign Storm®, BU®, Nalu®, NOS®, Full Throttle®, Burn®, Mother®, Ultra Energy®, Play® and Power Play® (stylized), Relentless®, Predator®, Fury®, Live+®, BPM®, Samurai®, Bang Energy®, Monster Tour Water®, Oskar Blues Brewery®, Cigar City®, Deep Ellum Brewing Co®, Perrin Brewing Company®, Squatters®, Wasatch®, Jai Alai®, Dale's Pale Ale®, Dallas Blonde®, Wild Basin®, Dale's®, Hop Rising®, The BeastTM, The Beast Unleashed® and Nasty Beast® Hard Tea to be its core trademarks. The Company also owns the intellectual property of its most important flavors for certain of its Monster Energy® Brand energy drinks in perpetuity. Leases - The Company leases identified assets comprised of real estate and equipment. Real estate leases consist primarily of office and warehouse space and equipment leases consist of vehicles and warehouse equipment. At the inception of a contract, the Company assesses whether the contract is, or contains, a lease. The Company's assessment is based on: (1) whether the contract involves the use of a distinct identified asset, (2) whether the Company obtains the right to substantially all the economic benefit from the use of the asset throughout the term, and (3) whether the Company has the right to direct the use of the asset. At inception of a lease, the Company allocates the consideration in the contract to each lease and non-lease component based on the component's relative stand-alone price to determine the lease payments. Lease and non-lease components are accounted for separately. Leases are classified as either finance leases or operating leases based on criteria in FASB ASC 842, "Leases". The Company's operating leases are comprised of real estate and warehouse equipment, and the Company's finance leases are comprised of vehicles. Right-of-use ("ROU") assets and lease liabilities are recognized at the lease commencement date based on the present value of lease payments over the lease term. As the Company's leases generally do not provide an implicit rate, the Company uses its incremental borrowing rate based on the estimated rate of interest for collateralized borrowing over a similar term of the lease payments at the commencement date. ROU assets also include any lease payments made and exclude lease incentives. Lease terms include options to extend or terminate the lease when it is reasonably certain that the Company will exercise that option. The Company has elected not to recognize ROU assets and lease liabilities for short-term operating leases that have a term of 12 months or less. Certain of the Company's real estate leases contain variable lease payments, including payments based on an index or rate. Variable lease payments based on an index or rate are initially measured using the index or rate in effect at the lease commencement date. Additional payments based on the change in an index or rate, or payments based on a change in the Company's portion of real estate taxes and insurance, are recorded as a period expense when incurred. 84 84 Table of ContentsMONSTER BEVERAGE CORPORATION AND SUBSIDIARIESNOTES TO CONSOLIDATED FINANCIAL STATEMENTS(Tabular Dollars in Thousands, Except Per Share Amounts)​Lease expense for operating leases, consisting of lease payments, is recognized on a straight-line basis over the lease term and is included in operating expenses in the consolidated statements of income. Lease expense for finance leases consists of the amortization of the ROU asset on a straight-line basis over the asset's estimated useful life and is included in operating expenses in the consolidated statement of income. Interest expense on finance leases is calculated using the amortized cost basis and is included in interest and other income (expense), net in the consolidated statements of income.Long-Lived Assets - Management regularly reviews property and equipment and other long-lived assets, including certain definite-lived intangible assets, for possible impairment. This review occurs annually, or more frequently if events or changes in circumstances indicate the carrying amount of the asset may not be recoverable. If there is indication of impairment, management then prepares an estimate of future cash flows (undiscounted and without interest charges) expected to result from the use of the asset and its eventual disposition. If these cash flows are less than the carrying amount of the asset, an impairment loss is recognized to write down the asset to its estimated fair value. The fair value is estimated using the present value of the future cash flows discounted at a rate commensurate with management's estimates of the business risks. Preparation of estimated expected future cash flows is inherently subjective and is based on management's best estimate of assumptions concerning expected future conditions. For the years ended December 31, 2024 and 2023, impairment charges of $8.2 million and $4.3 million, respectively, were recognized on property and equipment related to the Company's alcohol products. For the year ended December 31, 2022, there were no impairment indicators identified. Long-lived assets held for sale are recorded at the lower of their carrying amount or fair value less cost to sell.Derivative Financial Instruments - The Company uses derivative financial instruments for the purpose of hedging risk exposures to fluctuations in foreign currency exchange rates and aluminum commodity prices. The Company's derivative instruments are recorded in the consolidated balance sheets at fair value. The Company values each derivative financial instrument by obtaining valuation information from a reliable and observable market source. For a derivative designated as a cash flow hedge, the derivative's mark to fair value is initially recorded as a component of accumulated other comprehensive income (loss) and subsequently reclassified into earnings when the hedged item affects earnings, unless it is no longer probable that the forecasted transaction will occur. Derivatives that do not qualify for hedge accounting are marked to fair value with gains and losses immediately recorded in earnings. In the consolidated statements of cash flows, derivative activities are classified based on the cash flows of the items being hedged. Upon the dedesignation of an effective derivative contract, the gains or losses are deferred in accumulated other comprehensive income (loss) until the originally hedged item affects earnings, unless it is probable the hedged item will not occur, at which time it is recognized immediately. Any gains or losses incurred after the dedesignation date are recorded in earnings immediately.Foreign Currency Translation and Transactions - The accounts of the Company's foreign subsidiaries are translated in accordance with FASB ASC 830. Foreign currency transaction gains and losses are recognized in other income (expense), net, at the time they occur. Net foreign currency exchange gains or losses resulting from the translation of assets and liabilities of foreign subsidiaries whose functional currency is not the U.S. dollar are recorded as a part of accumulated other comprehensive income (loss) in stockholders' equity. Unrealized foreign currency exchange gains and losses on certain intercompany transactions that are of a long-term investment nature (i.e., settlement is not planned or anticipated in the foreseeable future) are also recorded in accumulated other comprehensive income (loss) in stockholders' equity. During the years ended December 31, 2024, 2023 and 2022, 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 outstanding as of December 31, 2024 have terms of three months 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 under FASB ASC 815. Therefore, gains and losses on the Company's foreign currency exchange contracts are recognized in interest and other income (expense), net, in the consolidated statements of income, and are largely offset by the changes in the fair value of the underlying economically hedged item. For the years ended December 31, 2024, 2023 and 2022, aggregate foreign currency transaction gains (losses), including the gains or losses on forward currency exchange contracts, amounted to ($26.4) million, ($60.2) million and ($37.9) million, respectively, and have been recorded in interest and other income(expense), net, in the accompanying consolidated statements of income.85 Table of ContentsMONSTER BEVERAGE CORPORATION AND SUBSIDIARIESNOTES TO CONSOLIDATED FINANCIAL STATEMENTS(Tabular Dollars in Thousands, Except Per Share Amounts)​ Table of Contents Table of Contents --- ## Modified: (Tabular Dollars in Thousands, Except Per Share Amounts) **Key changes:** - Reworded sentence: "​ Lease expense for operating leases, consisting of lease payments, is recognized on a straight-line basis over the lease term and is included in operating expenses in the consolidated statements of income." - Reworded sentence: "For a derivative designated as a cash flow hedge, the derivative's mark to fair value is initially recorded as a component of accumulated other comprehensive income (loss) and subsequently reclassified into earnings when the hedged item affects earnings, unless it is no longer probable that the forecasted transaction will occur." - Reworded sentence: "Foreign currency transaction gains and losses are recognized in other income (expense), net, at the time they occur." - Reworded sentence: "During the years ended December 31, 2024, 2023 and 2022, 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." - Reworded sentence: "For the years ended December 31, 2024, 2023 and 2022, aggregate foreign currency transaction gains (losses), including the gains or losses on forward currency exchange contracts, amounted to ($26.4) million, ($60.2) million and ($37.9) million, respectively, and have been recorded in interest and other income(expense), net, in the accompanying consolidated statements of income." **Prior (2024):** ​ Derivative Financial Instruments - The Company uses derivative financial instruments for the purpose of hedging risk exposures to fluctuations in foreign currency exchange rates and aluminum commodity prices. The Company's derivative instruments are recorded in the consolidated balance sheets at fair value. The Company values each derivative financial instrument by obtaining valuation information from a reliable and observable market source. For a derivative designated as a cash flow hedge, the derivative's mark to fair value is initially recorded as a component of accumulated other comprehensive income (loss) and subsequently reclassified into earnings when the hedged item affects earnings, unless it is no longer probable that the forecasted transaction will occur. Derivatives that do not qualify for hedge accounting are marked to fair value with gains and losses immediately recorded in earnings. In the consolidated statements of cash flows, derivative activities are classified based on the cash flows of the items being hedged. Upon the dedesignation of an effective derivative contract, the gains or losses are deferred in accumulated other comprehensive income (loss) until the originally hedged item affects earnings, unless it is probable the hedged item will not occur, at which time it is recognized immediately. Any gains or losses incurred after the dedesignation date are recorded in earnings immediately.Foreign Currency Translation and Transactions - The accounts of the Company's foreign subsidiaries are translated in accordance with FASB ASC 830. Foreign currency transaction gains and losses are recognized in other expense, net, at the time they occur. Net foreign currency exchange gains or losses resulting from the translation of assets and liabilities of foreign subsidiaries whose functional currency is not the U.S. dollar are recorded as a part of accumulated other comprehensive income (loss) in stockholders' equity. Unrealized foreign currency exchange gains and losses on certain intercompany transactions that are of a long-term investment nature (i.e., settlement is not planned or anticipated in the foreseeable future) are also recorded in accumulated other comprehensive income (loss) in stockholders' equity. During the years ended December 31, 2023, 2022 and 2021, 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 outstanding as of December 31, 2023 have terms of three months 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 under FASB ASC 815. Therefore, gains and losses on the Company's foreign currency exchange contracts are recognized in interest and other income (expense), net, in the consolidated statements of income, and are largely offset by the changes in the fair value of the underlying economically hedged item. For the years ended December 31, 2023, 2022 and 2021, aggregate foreign currency transaction gains (losses), including the gains or losses on forward currency exchange contracts, amounted to ($60.2) million, ($37.9) million and $0.3 million, respectively, and have been recorded in interest and other income(expense), net, in the accompanying consolidated statements of income.Revenue Recognition - See Note 3.Cost of Sales - Cost of sales consists of the costs of flavors, concentrates, supplement ingredients and/or beverage bases, the costs of raw materials utilized in the manufacture of beverages, co-packing fees, repacking fees, in-bound freight charges, as well as internal transfer costs, warehouse expenses incurred prior to the manufacture of the Company's finished products and certain quality control costs. In addition, the Company includes in costs of sales certain costs such as depreciation, amortization and payroll costs that relate to the direct manufacture by the Company of certain flavors and concentrates. Raw materials account for the largest portion of cost of sales. Raw materials include cans, bottles, other containers, flavors, ingredients and packaging materials.Operating Expenses - Operating expenses include selling expenses such as distribution expenses to transport products to customers and warehousing expenses after manufacture, as well as expenses for advertising, sampling and in- Derivative Financial Instruments - The Company uses derivative financial instruments for the purpose of hedging risk exposures to fluctuations in foreign currency exchange rates and aluminum commodity prices. The Company's derivative instruments are recorded in the consolidated balance sheets at fair value. The Company values each derivative financial instrument by obtaining valuation information from a reliable and observable market source. For a derivative designated as a cash flow hedge, the derivative's mark to fair value is initially recorded as a component of accumulated other comprehensive income (loss) and subsequently reclassified into earnings when the hedged item affects earnings, unless it is no longer probable that the forecasted transaction will occur. Derivatives that do not qualify for hedge accounting are marked to fair value with gains and losses immediately recorded in earnings. In the consolidated statements of cash flows, derivative activities are classified based on the cash flows of the items being hedged. Upon the dedesignation of an effective derivative contract, the gains or losses are deferred in accumulated other comprehensive income (loss) until the originally hedged item affects earnings, unless it is probable the hedged item will not occur, at which time it is recognized immediately. Any gains or losses incurred after the dedesignation date are recorded in earnings immediately. Foreign Currency Translation and Transactions - The accounts of the Company's foreign subsidiaries are translated in accordance with FASB ASC 830. Foreign currency transaction gains and losses are recognized in other expense, net, at the time they occur. Net foreign currency exchange gains or losses resulting from the translation of assets and liabilities of foreign subsidiaries whose functional currency is not the U.S. dollar are recorded as a part of accumulated other comprehensive income (loss) in stockholders' equity. Unrealized foreign currency exchange gains and losses on certain intercompany transactions that are of a long-term investment nature (i.e., settlement is not planned or anticipated in the foreseeable future) are also recorded in accumulated other comprehensive income (loss) in stockholders' equity. During the years ended December 31, 2023, 2022 and 2021, 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 outstanding as of December 31, 2023 have terms of three months 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 under FASB ASC 815. Therefore, gains and losses on the Company's foreign currency exchange contracts are recognized in interest and other income (expense), net, in the consolidated statements of income, and are largely offset by the changes in the fair value of the underlying economically hedged item. For the years ended December 31, 2023, 2022 and 2021, aggregate foreign currency transaction gains (losses), including the gains or losses on forward currency exchange contracts, amounted to ($60.2) million, ($37.9) million and $0.3 million, respectively, and have been recorded in interest and other income(expense), net, in the accompanying consolidated statements of income. Revenue Recognition - See Note 3. Cost of Sales - Cost of sales consists of the costs of flavors, concentrates, supplement ingredients and/or beverage bases, the costs of raw materials utilized in the manufacture of beverages, co-packing fees, repacking fees, in-bound freight charges, as well as internal transfer costs, warehouse expenses incurred prior to the manufacture of the Company's finished products and certain quality control costs. In addition, the Company includes in costs of sales certain costs such as depreciation, amortization and payroll costs that relate to the direct manufacture by the Company of certain flavors and concentrates. Raw materials account for the largest portion of cost of sales. Raw materials include cans, bottles, other containers, flavors, ingredients and packaging materials. Operating Expenses - Operating expenses include selling expenses such as distribution expenses to transport products to customers and warehousing expenses after manufacture, as well as expenses for advertising, sampling and in- 91 91 Table of ContentsMONSTER BEVERAGE CORPORATION AND SUBSIDIARIESNOTES TO CONSOLIDATED FINANCIAL STATEMENTS(Tabular Dollars in Thousands, Except Per Share Amounts)​store demonstration costs, costs for merchandise displays, point-of-sale materials and premium items, sponsorship expenses, other marketing expenses and design expenses. Operating expenses also include such costs as payroll costs, travel costs, professional service fees including legal fees, termination payments made to certain of the Company's prior distributors, impairment charges on intangible assets, depreciation and other general and administrative costs.Freight-Out Costs - For the years ended December 31, 2023, 2022 and 2021, freight-out costs amounted to $223.6 million, $249.2 million and $213.9 million, respectively, and have been recorded in operating expenses in the accompanying consolidated statements of income.Advertising and Promotional Expenses - The Company accounts for advertising production costs by expensing such production costs the first time the related advertising takes place. A significant amount of the Company's promotional expenses result from payments under sponsorship and endorsement contracts. Accounting for sponsorship and endorsement payments is based upon specific contract provisions. Generally, sponsorship and endorsement payments are expensed on a straight-line basis over the term of the contract after giving recognition to the periodic performance compliance provisions of the contracts. Advertising and promotional expenses, including, but not limited to, production costs amounted to $528.9 million, $460.7 million and $417.6 million for the years ended December 31, 2023, 2022 and 2021, respectively. Advertising and promotional expenses that are not subject to FASB ASC 606 are included in operating expenses in the accompanying consolidated statements of income.Income Taxes - The Company utilizes the liability method of accounting for income taxes as set forth in FASB ASC 740. Under the liability method, deferred taxes are determined based on the temporary differences between the financial statement and tax basis of assets and liabilities using tax rates expected to be in effect during the years in which the basis differences reverse. A valuation allowance is recorded when it is more likely than not that some of the deferred tax assets will not be realized. In determining the need for valuation allowances the Company considers projected future taxable income and the availability of tax planning strategies. If in the future the Company determines that it would not be able to realize its recorded deferred tax assets, an increase in the valuation allowance would be recorded, decreasing earnings in the period in which such determination is made.The Company assesses its income tax positions and records tax benefits for all years subject to examination based upon the Company's evaluation of the facts, circumstances and information available at the reporting date. For those tax positions where there is a greater than 50% likelihood that a tax benefit will be sustained, the Company has recorded the largest amount of tax benefit that may potentially be realized upon ultimate settlement with a taxing authority that has full knowledge of all relevant information. For those income tax positions where there is less than 50% likelihood that a tax benefit will be sustained, no tax benefit has been recognized in the financial statements.Stock-Based Compensation - The Company accounts for stock-based compensation under the provisions of FASB ASC 718. The Company records compensation expense for employee stock options based on the estimated fair value of the options on the date of grant using the Black-Scholes-Merton option pricing formula. The Company records compensation expense for non-employee stock options based on the estimated fair value of the options as of the earlier of (1) the date at which a commitment for performance by the non-employee to earn the stock option is reached or (2) the date at which the non-employee's performance is complete, using the Black-Scholes-Merton option pricing formula. Stock-based compensation cost 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. See Note 16.92 Table of ContentsMONSTER BEVERAGE CORPORATION AND SUBSIDIARIESNOTES TO CONSOLIDATED FINANCIAL STATEMENTS(Tabular Dollars in Thousands, Except Per Share Amounts)​ Table of Contents Table of Contents **Current (2025):** ​ Lease expense for operating leases, consisting of lease payments, is recognized on a straight-line basis over the lease term and is included in operating expenses in the consolidated statements of income. Lease expense for finance leases consists of the amortization of the ROU asset on a straight-line basis over the asset's estimated useful life and is included in operating expenses in the consolidated statement of income. Interest expense on finance leases is calculated using the amortized cost basis and is included in interest and other income (expense), net in the consolidated statements of income.Long-Lived Assets - Management regularly reviews property and equipment and other long-lived assets, including certain definite-lived intangible assets, for possible impairment. This review occurs annually, or more frequently if events or changes in circumstances indicate the carrying amount of the asset may not be recoverable. If there is indication of impairment, management then prepares an estimate of future cash flows (undiscounted and without interest charges) expected to result from the use of the asset and its eventual disposition. If these cash flows are less than the carrying amount of the asset, an impairment loss is recognized to write down the asset to its estimated fair value. The fair value is estimated using the present value of the future cash flows discounted at a rate commensurate with management's estimates of the business risks. Preparation of estimated expected future cash flows is inherently subjective and is based on management's best estimate of assumptions concerning expected future conditions. For the years ended December 31, 2024 and 2023, impairment charges of $8.2 million and $4.3 million, respectively, were recognized on property and equipment related to the Company's alcohol products. For the year ended December 31, 2022, there were no impairment indicators identified. Long-lived assets held for sale are recorded at the lower of their carrying amount or fair value less cost to sell.Derivative Financial Instruments - The Company uses derivative financial instruments for the purpose of hedging risk exposures to fluctuations in foreign currency exchange rates and aluminum commodity prices. The Company's derivative instruments are recorded in the consolidated balance sheets at fair value. The Company values each derivative financial instrument by obtaining valuation information from a reliable and observable market source. For a derivative designated as a cash flow hedge, the derivative's mark to fair value is initially recorded as a component of accumulated other comprehensive income (loss) and subsequently reclassified into earnings when the hedged item affects earnings, unless it is no longer probable that the forecasted transaction will occur. Derivatives that do not qualify for hedge accounting are marked to fair value with gains and losses immediately recorded in earnings. In the consolidated statements of cash flows, derivative activities are classified based on the cash flows of the items being hedged. Upon the dedesignation of an effective derivative contract, the gains or losses are deferred in accumulated other comprehensive income (loss) until the originally hedged item affects earnings, unless it is probable the hedged item will not occur, at which time it is recognized immediately. Any gains or losses incurred after the dedesignation date are recorded in earnings immediately.Foreign Currency Translation and Transactions - The accounts of the Company's foreign subsidiaries are translated in accordance with FASB ASC 830. Foreign currency transaction gains and losses are recognized in other income (expense), net, at the time they occur. Net foreign currency exchange gains or losses resulting from the translation of assets and liabilities of foreign subsidiaries whose functional currency is not the U.S. dollar are recorded as a part of accumulated other comprehensive income (loss) in stockholders' equity. Unrealized foreign currency exchange gains and losses on certain intercompany transactions that are of a long-term investment nature (i.e., settlement is not planned or anticipated in the foreseeable future) are also recorded in accumulated other comprehensive income (loss) in stockholders' equity. During the years ended December 31, 2024, 2023 and 2022, 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 outstanding as of December 31, 2024 have terms of three months 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 under FASB ASC 815. Therefore, gains and losses on the Company's foreign currency exchange contracts are recognized in interest and other income (expense), net, in the consolidated statements of income, and are largely offset by the changes in the fair value of the underlying economically hedged item. For the years ended December 31, 2024, 2023 and 2022, aggregate foreign currency transaction gains (losses), including the gains or losses on forward currency exchange contracts, amounted to ($26.4) million, ($60.2) million and ($37.9) million, respectively, and have been recorded in interest and other income(expense), net, in the accompanying consolidated statements of income. Lease expense for operating leases, consisting of lease payments, is recognized on a straight-line basis over the lease term and is included in operating expenses in the consolidated statements of income. Lease expense for finance leases consists of the amortization of the ROU asset on a straight-line basis over the asset's estimated useful life and is included in operating expenses in the consolidated statement of income. Interest expense on finance leases is calculated using the amortized cost basis and is included in interest and other income (expense), net in the consolidated statements of income.Long-Lived Assets - Management regularly reviews property and equipment and other long-lived assets, including certain definite-lived intangible assets, for possible impairment. This review occurs annually, or more frequently if events or changes in circumstances indicate the carrying amount of the asset may not be recoverable. If there is indication of impairment, management then prepares an estimate of future cash flows (undiscounted and without interest charges) expected to result from the use of the asset and its eventual disposition. If these cash flows are less than the carrying amount of the asset, an impairment loss is recognized to write down the asset to its estimated fair value. The fair value is estimated using the present value of the future cash flows discounted at a rate commensurate with management's estimates of the business risks. Preparation of estimated expected future cash flows is inherently subjective and is based on management's best estimate of assumptions concerning expected future conditions. For the years ended December 31, 2024 and 2023, impairment charges of $8.2 million and $4.3 million, respectively, were recognized on property and equipment related to the Company's alcohol products. For the year ended December 31, 2022, there were no impairment indicators identified. Long-lived assets held for sale are recorded at the lower of their carrying amount or fair value less cost to sell.Derivative Financial Instruments - The Company uses derivative financial instruments for the purpose of hedging risk exposures to fluctuations in foreign currency exchange rates and aluminum commodity prices. The Company's derivative instruments are recorded in the consolidated balance sheets at fair value. The Company values each derivative financial instrument by obtaining valuation information from a reliable and observable market source. For a derivative designated as a cash flow hedge, the derivative's mark to fair value is initially recorded as a component of accumulated other comprehensive income (loss) and subsequently reclassified into earnings when the hedged item affects earnings, unless it is no longer probable that the forecasted transaction will occur. Derivatives that do not qualify for hedge accounting are marked to fair value with gains and losses immediately recorded in earnings. In the consolidated statements of cash flows, derivative activities are classified based on the cash flows of the items being hedged. Upon the dedesignation of an effective derivative contract, the gains or losses are deferred in accumulated other comprehensive income (loss) until the originally hedged item affects earnings, unless it is probable the hedged item will not occur, at which time it is recognized immediately. Any gains or losses incurred after the dedesignation date are recorded in earnings immediately.Foreign Currency Translation and Transactions - The accounts of the Company's foreign subsidiaries are translated in accordance with FASB ASC 830. Foreign currency transaction gains and losses are recognized in other income (expense), net, at the time they occur. Net foreign currency exchange gains or losses resulting from the translation of assets and liabilities of foreign subsidiaries whose functional currency is not the U.S. dollar are recorded as a part of accumulated other comprehensive income (loss) in stockholders' equity. Unrealized foreign currency exchange gains and losses on certain intercompany transactions that are of a long-term investment nature (i.e., settlement is not planned or anticipated in the foreseeable future) are also recorded in accumulated other comprehensive income (loss) in stockholders' equity. During the years ended December 31, 2024, 2023 and 2022, 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 outstanding as of December 31, 2024 have terms of three months 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 under FASB ASC 815. Therefore, gains and losses on the Company's foreign currency exchange contracts are recognized in interest and other income (expense), net, in the consolidated statements of income, and are largely offset by the changes in the fair value of the underlying economically hedged item. For the years ended December 31, 2024, 2023 and 2022, aggregate foreign currency transaction gains (losses), including the gains or losses on forward currency exchange contracts, amounted to ($26.4) million, ($60.2) million and ($37.9) million, respectively, and have been recorded in interest and other income(expense), net, in the accompanying consolidated statements of income. Lease expense for operating leases, consisting of lease payments, is recognized on a straight-line basis over the lease term and is included in operating expenses in the consolidated statements of income. Lease expense for finance leases consists of the amortization of the ROU asset on a straight-line basis over the asset's estimated useful life and is included in operating expenses in the consolidated statement of income. Interest expense on finance leases is calculated using the amortized cost basis and is included in interest and other income (expense), net in the consolidated statements of income. Long-Lived Assets - Management regularly reviews property and equipment and other long-lived assets, including certain definite-lived intangible assets, for possible impairment. This review occurs annually, or more frequently if events or changes in circumstances indicate the carrying amount of the asset may not be recoverable. If there is indication of impairment, management then prepares an estimate of future cash flows (undiscounted and without interest charges) expected to result from the use of the asset and its eventual disposition. If these cash flows are less than the carrying amount of the asset, an impairment loss is recognized to write down the asset to its estimated fair value. The fair value is estimated using the present value of the future cash flows discounted at a rate commensurate with management's estimates of the business risks. Preparation of estimated expected future cash flows is inherently subjective and is based on management's best estimate of assumptions concerning expected future conditions. For the years ended December 31, 2024 and 2023, impairment charges of $8.2 million and $4.3 million, respectively, were recognized on property and equipment related to the Company's alcohol products. For the year ended December 31, 2022, there were no impairment indicators identified. Long-lived assets held for sale are recorded at the lower of their carrying amount or fair value less cost to sell. Derivative Financial Instruments - The Company uses derivative financial instruments for the purpose of hedging risk exposures to fluctuations in foreign currency exchange rates and aluminum commodity prices. The Company's derivative instruments are recorded in the consolidated balance sheets at fair value. The Company values each derivative financial instrument by obtaining valuation information from a reliable and observable market source. For a derivative designated as a cash flow hedge, the derivative's mark to fair value is initially recorded as a component of accumulated other comprehensive income (loss) and subsequently reclassified into earnings when the hedged item affects earnings, unless it is no longer probable that the forecasted transaction will occur. Derivatives that do not qualify for hedge accounting are marked to fair value with gains and losses immediately recorded in earnings. In the consolidated statements of cash flows, derivative activities are classified based on the cash flows of the items being hedged. Upon the dedesignation of an effective derivative contract, the gains or losses are deferred in accumulated other comprehensive income (loss) until the originally hedged item affects earnings, unless it is probable the hedged item will not occur, at which time it is recognized immediately. Any gains or losses incurred after the dedesignation date are recorded in earnings immediately. Foreign Currency Translation and Transactions - The accounts of the Company's foreign subsidiaries are translated in accordance with FASB ASC 830. Foreign currency transaction gains and losses are recognized in other income (expense), net, at the time they occur. Net foreign currency exchange gains or losses resulting from the translation of assets and liabilities of foreign subsidiaries whose functional currency is not the U.S. dollar are recorded as a part of accumulated other comprehensive income (loss) in stockholders' equity. Unrealized foreign currency exchange gains and losses on certain intercompany transactions that are of a long-term investment nature (i.e., settlement is not planned or anticipated in the foreseeable future) are also recorded in accumulated other comprehensive income (loss) in stockholders' equity. During the years ended December 31, 2024, 2023 and 2022, 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 outstanding as of December 31, 2024 have terms of three months 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 under FASB ASC 815. Therefore, gains and losses on the Company's foreign currency exchange contracts are recognized in interest and other income (expense), net, in the consolidated statements of income, and are largely offset by the changes in the fair value of the underlying economically hedged item. For the years ended December 31, 2024, 2023 and 2022, aggregate foreign currency transaction gains (losses), including the gains or losses on forward currency exchange contracts, amounted to ($26.4) million, ($60.2) million and ($37.9) million, respectively, and have been recorded in interest and other income(expense), net, in the accompanying consolidated statements of income. 85 85 Table of ContentsMONSTER BEVERAGE CORPORATION AND SUBSIDIARIESNOTES TO CONSOLIDATED FINANCIAL STATEMENTS(Tabular Dollars in Thousands, Except Per Share Amounts)​Revenue Recognition - See Note 3.Cost of Sales - Cost of sales consists of the costs of flavors, concentrates, supplement ingredients and/or beverage bases, the costs of raw materials utilized in the manufacture of beverages, co-packing fees, repacking fees, in-bound freight charges, as well as internal transfer costs, warehouse expenses incurred prior to the manufacture of the Company's finished products and certain quality control costs. In addition, the Company includes in costs of sales certain costs such as depreciation, amortization and payroll costs that relate to the direct manufacture by the Company of certain flavors and concentrates. Raw materials account for the largest portion of cost of sales. Raw materials include cans, bottles, other containers, flavors, ingredients and packaging materials.Operating Expenses - Operating expenses include selling expenses such as distribution expenses to transport products to customers and warehousing expenses after manufacture, as well as expenses for advertising, sampling and in-store demonstration costs, costs for merchandise displays, point-of-sale materials and premium items, sponsorship expenses, other marketing expenses and design expenses. Operating expenses also include such costs as payroll costs, travel costs, professional service fees including legal fees, termination payments made to certain of the Company's prior distributors, impairment charges on goodwill and other intangible assets, depreciation and other general and administrative costs.Freight-Out Costs - For the years ended December 31, 2024, 2023 and 2022, freight-out costs amounted to $224.2 million, $223.6 million and $249.2 million, respectively, and have been recorded in operating expenses in the accompanying consolidated statements of income.Advertising and Promotional Expenses - The Company accounts for advertising production costs by expensing such production costs the first time the related advertising takes place. A significant amount of the Company's promotional expenses result from payments under sponsorship and endorsement contracts. Accounting for sponsorship and endorsement payments is based upon specific contract provisions. Generally, sponsorship and endorsement payments are expensed on a straight-line basis over the term of the contract after giving recognition to the periodic performance compliance provisions of the contracts. Advertising and promotional expenses, including, but not limited to, production costs amounted to $584.1 million, $528.9 million and $460.7 million for the years ended December 31, 2024, 2023 and 2022, respectively. Advertising and promotional expenses that are not subject to FASB ASC 606 are included in operating expenses in the accompanying consolidated statements of income.Income Taxes - The Company utilizes the liability method of accounting for income taxes as set forth in FASB ASC 740. Under the liability method, deferred taxes are determined based on the temporary differences between the financial statement and tax basis of assets and liabilities using tax rates expected to be in effect during the years in which the basis differences reverse. A valuation allowance is recorded when it is more likely than not that some of the deferred tax assets will not be realized. In determining the need for valuation allowances the Company considers projected future taxable income and the availability of tax planning strategies. If in the future the Company determines that it would not be able to realize its recorded deferred tax assets, an increase in the valuation allowance would be recorded, decreasing earnings in the period in which such determination is made.The Company assesses its income tax positions and records tax benefits for all years subject to examination based upon the Company's evaluation of the facts, circumstances and information available at the reporting date. For those tax positions where there is a greater than 50% likelihood that a tax benefit will be sustained, the Company has recorded the largest amount of tax benefit that may potentially be realized upon ultimate settlement with a taxing authority that has full knowledge of all relevant information. For those income tax positions where there is less than 50% likelihood that a tax benefit will be sustained, no tax benefit has been recognized in the financial statements.86 Table of ContentsMONSTER BEVERAGE CORPORATION AND SUBSIDIARIESNOTES TO CONSOLIDATED FINANCIAL STATEMENTS(Tabular Dollars in Thousands, Except Per Share Amounts)​ Table of Contents Table of Contents --- ## Modified: Principal Market **Key changes:** - Reworded sentence: "As of February 14, 2025, there were 973,158,896 shares of the Company's common stock outstanding held by approximately 181 holders of record." **Prior (2024):** The Company's common stock trades on the Nasdaq Global Select Market under the symbol, "MNST". As of February 15, 2024, there were 1,040,636,235 shares of the Company's common stock outstanding held by approximately 189 holders of record. The holders of record do not include those stockholders whose shares are held of record by banks, brokers and other financial institutions. **Current (2025):** The Company's common stock trades on the Nasdaq Global Select Market under the symbol, "MNST". As of February 14, 2025, there were 973,158,896 shares of the Company's common stock outstanding held by approximately 181 holders of record. The holders of record do not include those stockholders whose shares are held of record by banks, brokers and other financial institutions. --- ## Modified: FOR THE YEARS ENDED DECEMBER 31, 2024, 2023 AND 2022 **Key changes:** - Reworded sentence: "​ SUPPLEMENTAL DISCLOSURE OF NON-CASH ITEMS: ​ Included in accrued liabilities as of December 31, 2024, 2023 and 2022 were additions to other intangible assets of $5.0 million, $15.4 million and $9.4 million, respectively." - Reworded sentence: "​ ​ 81 81 Table of ContentsMONSTER BEVERAGE CORPORATION AND SUBSIDIARIESNOTES TO CONSOLIDATED FINANCIAL STATEMENTS(Tabular Dollars in Thousands, Except Per Share Amounts)​1.ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIESOrganization - Monster Beverage Corporation (the "Company") was incorporated in the state of Delaware." - Reworded sentence: "Adjustments to fair value assessments are recorded to goodwill over the measurement period (not longer than twelve months)." **Prior (2024):** ​ SUPPLEMENTAL DISCLOSURE OF NON-CASH ITEMS: ​ Included in accrued liabilities as of December 31, 2023, 2022 and 2021 were $15.4 million, $9.4 million and $14.0 million, respectively, related to net additions to other intangible assets. Accounts payable included equipment purchases of $16.9 million, $2.9 million and $0.6 million as of December 31, 2023, 2022 and 2021, respectively. Accounts receivable included sales of available-for-sale short-term investments of $3.0 million and $15.2 million as of December 31, 2023 and 2022, respectively. No sales of available-for-sale investments were included in accounts receivable as of December 31, 2021. See accompanying notes to consolidated financial statements. ​ ​ 86 86 Table of ContentsMONSTER BEVERAGE CORPORATION AND SUBSIDIARIESNOTES TO CONSOLIDATED FINANCIAL STATEMENTS(Tabular Dollars in Thousands, Except Per Share Amounts)​1. ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIESOrganization - Monster Beverage Corporation (the "Company") was incorporated in the state of Delaware. The Company is a holding company and has no operating business except through its consolidated subsidiaries.Nature of Operations - The Company develops, markets, sells and distributes energy drink beverages and concentrates for energy drink beverages, primarily under the following brand names: Monster Energy®, Monster Energy Ultra®, Monster Rehab®, Monster Energy® Nitro, Java Monster®, Punch Monster®, Juice Monster®, Reign Total Body Fuel®, Reign Inferno® Thermogenic Fuel, Reign Storm®, Bang Energy®, NOS®, Full Throttle®, Burn®, Mother®, Nalu®, Ultra Energy®, Play® and Power Play® (stylized), Relentless®, BPM®, BU®, Gladiator®, Samurai®, Live+®, Predator® and Fury®.The Company also develops, markets, sells and distributes still and sparkling waters under the Monster Tour Water® brand name.The Company also develops, markets, sells and distributes craft beers, flavored malt beverages ("FMBs") and hard seltzers under a number of brands, including Jai Alai® IPA, Florida ManTM IPA, Dale's Pale Ale®, Wild Basin® Hard Seltzers, Dallas Blonde®, Deep EllumTM IPA, Perrin Brewing CompanyTM Black Ale, Hop Rising® Double IPA, Wasatch® Apricot Hefeweizen, The Beast Unleashed®, Nasty BeastTM Hard Tea and a host of other brands.Basis of Presentation - The accompanying consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America ("GAAP") and include the accounts of the Company and its consolidated subsidiaries.Treasury Stock Retirement - On March 10, 2023, the Company retired 170.0 million shares (stock split adjusted) of treasury stock owned by the Company. The retired treasury stock had a carrying value of approximately $4.69 billion. The Company's accounting policy upon the formal retirement of treasury stock is to deduct its par value from common stock and to reflect any excess of cost over par as a deduction from retained earnings.Stock Split - On February 28, 2023, the Company announced a two-for-one stock split of the Company's common stock which was effected in the form of a 100% stock dividend. The common stock dividend was issued on March 27, 2023 (the "Stock Split") and the Company's common stock began trading at the split adjusted price on March 28, 2023. Accordingly, all per share amounts, average common stock outstanding, common stock outstanding, common stock repurchased and equity-based compensation disclosure presented in the consolidated financial statements and notes have been adjusted retroactively, where applicable, to reflect the Stock Split. Stockholders' equity has been retroactively adjusted, where applicable, to give effect to the Stock Split for all periods presented by reclassifying the par value of the additional shares issued in connection with the Stock Split to common stock from additional paid-in capital.Principles of Consolidation - The Company consolidates all entities that it controls by ownership of a majority voting interest. All intercompany balances and transactions have been eliminated in consolidation.Business Combinations - Business acquisitions are accounted for in accordance with Financial Accounting Standards Board ("FASB") Accounting Standards Codification ("ASC") 805 "Business Combinations". FASB ASC 805 requires the reporting entity to identify the acquirer, determine the acquisition date, recognize and measure the identifiable tangible and intangible assets acquired, the liabilities assumed and any non-controlling interest in the acquired entity, and recognize and measure goodwill or a gain from the purchase. The acquiree's results are included in the Company's consolidated financial statements from the date of acquisition. Assets acquired and liabilities assumed are recorded at their fair values and the excess of the purchase price over the amounts assigned is recorded as goodwill. Adjustments to fair value 87 Table of ContentsMONSTER BEVERAGE CORPORATION AND SUBSIDIARIESNOTES TO CONSOLIDATED FINANCIAL STATEMENTS(Tabular Dollars in Thousands, Except Per Share Amounts)​ Table of Contents Table of Contents **Current (2025):** ​ SUPPLEMENTAL DISCLOSURE OF NON-CASH ITEMS: ​ Included in accrued liabilities as of December 31, 2024, 2023 and 2022 were additions to other intangible assets of $5.0 million, $15.4 million and $9.4 million, respectively. Included in accounts payable as of December 31, 2024, 2023 and 2022 were property and equipment purchases of $6.3 million, $16.9 million and $2.9 million, respectively. Included in accounts receivable as of December 31, 2023 and 2022 were sales of available-for-sale short-term investments of $3.0 million and $15.2 million, respectively. See accompanying notes to consolidated financial statements. ​ ​ 81 81 Table of ContentsMONSTER BEVERAGE CORPORATION AND SUBSIDIARIESNOTES TO CONSOLIDATED FINANCIAL STATEMENTS(Tabular Dollars in Thousands, Except Per Share Amounts)​1.ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIESOrganization - Monster Beverage Corporation (the "Company") was incorporated in the state of Delaware. The Company is a holding company and has no operating business except through its consolidated subsidiaries.Nature of Operations - The Company develops, markets, sells and distributes energy drink beverages and concentrates for energy drink beverages, primarily under the following brand names: Monster Energy®, Monster Energy Ultra®, Rehab Monster®, Monster Energy® Nitro, Java Monster®, Punch Monster®, Juice Monster®, Reign Total Body Fuel®, Reign Inferno® Thermogenic Fuel, Reign Storm®, Bang Energy®, NOS®, Full Throttle®, Burn®, Mother®, Nalu®, Ultra Energy®, Play® and Power Play® (stylized), Relentless®, BPM®, BU®, Samurai®, Live+®, Predator® and Fury®.The Company also develops, markets, sells and distributes still and sparkling waters under the Monster Tour Water® brand name.The Company also develops, markets, sells and distributes craft beers, flavored malt beverages ("FMBs") and hard seltzers under a number of brands, including Jai Alai® IPA, Florida Man® IPA, Dale's Pale Ale®, Wild Basin® Hard Seltzers, Dallas Blonde®, Deep EllumTM IPA, Perrin Brewing Company® Black Ale, Hop Rising® Double IPA, Wasatch® Apricot Hefeweizen, The BeastTM, Nasty Beast® Hard Tea and a host of other brands. Basis of Presentation - The accompanying consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America ("GAAP") and include the accounts of the Company and its consolidated subsidiaries.Stock Split - On February 28, 2023, the Company announced a two-for-one stock split of the Company's common stock which was effected in the form of a 100% stock dividend. The common stock dividend was issued on March 27, 2023 (the "Stock Split") and the Company's common stock began trading at the split adjusted price on March 28, 2023. Accordingly, all per share amounts, average common stock outstanding, common stock outstanding, common stock repurchased and equity-based compensation disclosure presented in the consolidated financial statements and notes have been adjusted retroactively, where applicable, to reflect the Stock Split. Stockholders' equity has been retroactively adjusted, where applicable, to give effect to the Stock Split for all periods presented by reclassifying the par value of the additional shares issued in connection with the Stock Split to common stock from additional paid-in capital.Principles of Consolidation - The Company consolidates all entities that it controls by ownership of a majority voting interest. All intercompany balances and transactions have been eliminated in consolidation.Business Combinations - Business acquisitions are accounted for in accordance with Financial Accounting Standards Board ("FASB") Accounting Standards Codification ("ASC") 805 "Business Combinations". FASB ASC 805 requires the reporting entity to identify the acquirer, determine the acquisition date, recognize and measure the identifiable tangible and intangible assets acquired, the liabilities assumed and any non-controlling interest in the acquired entity, and recognize and measure goodwill or a gain from the purchase. The acquiree's results are included in the Company's consolidated financial statements from the date of acquisition. Assets acquired and liabilities assumed are recorded at their fair values and the excess of the purchase price over the amounts assigned is recorded as goodwill. Adjustments to fair value assessments are recorded to goodwill over the measurement period (not longer than twelve months). The acquisition method also requires that acquisition-related transaction and post-acquisition restructuring costs be charged to expense and requires the Company to recognize and measure certain assets and liabilities including those arising from contingencies and contingent consideration in a business combination.Cash and Cash Equivalents - The Company considers all highly liquid investments with an original maturity of three months or less from date of purchase to be cash equivalents. Throughout the year, the Company has had amounts on deposit at financial institutions that exceed the federally insured limits. The Company has not experienced any loss as a result of these deposits and does not expect to incur any losses in the future.82 Table of ContentsMONSTER BEVERAGE CORPORATION AND SUBSIDIARIESNOTES TO CONSOLIDATED FINANCIAL STATEMENTS(Tabular Dollars in Thousands, Except Per Share Amounts)​ Table of Contents Table of Contents --- ## Modified: INDEX TO CONSOLIDATED FINANCIAL STATEMENTS AND FINANCIAL STATEMENT SCHEDULE **Key changes:** - Reworded sentence: "​ ​ ​ ​ ​ Page MONSTER BEVERAGE CORPORATION AND SUBSIDIARIES ​ ​ ​ Reports of Independent Registered Public Accounting Firms Reports of Independent Registered Public Accounting Firms 73 ​ ​ Consolidated Balance Sheets as of December 31, 2024 and 2023 Consolidated Balance Sheets as of December 31, 2024 and 2023 76 ​ ​ Consolidated Statements of Income for the years ended December 31, 2024, 2023 and 2022 Consolidated Statements of Income for the years ended December 31, 2024, 2023 and 2022 77 ​ ​ Consolidated Statements of Comprehensive Income for the years ended December 31, 2024, 2023 and 2022 Consolidated Statements of Comprehensive Income for the years ended December 31, 2024, 2023 and 2022 78 ​ ​ Consolidated Statements of Stockholders' Equity for the years ended December 31, 2024, 2023 and 2022 Consolidated Statements of Stockholders' Equity for the years ended December 31, 2024, 2023 and 2022 79 ​ ​ Consolidated Statements of Cash Flows for the years ended December 31, 2024, 2023 and 2022 Consolidated Statements of Cash Flows for the years ended December 31, 2024, 2023 and 2022 80 ​ ​ Notes to Consolidated Financial Statements Notes to Consolidated Financial Statements 82 ​ ​ Financial Statement Schedule - Valuation and Qualifying Accounts for the years ended December 31, 2024, 2023 and 2022 Financial Statement Schedule - Valuation and Qualifying Accounts for the years ended December 31, 2024, 2023 and 2022 118 ​ ​ ​ 72 72 Table of ContentsReport of Independent Registered Public Accounting FirmTo the Stockholders and the Board of Directors of Monster Beverage Corporation and SubsidiariesOpinion on the Financial StatementsWe have audited the accompanying consolidated balance sheets of Monster Beverage Corporation and subsidiaries (the Company) as of December 31, 2024 and 2023, the related consolidated statements of income, comprehensive income, stockholders' equity and cash flows for each of the two years in the period ended December 31, 2024, and the related notes and financial statement schedule listed in the Index in Item 15(a) (collectively referred to as the "consolidated financial statements")." - Reworded sentence: "federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.We conducted our audits in accordance with the standards of the PCAOB." - Reworded sentence: "Our audits included performing procedures to assess the risks of material misstatement of the financial statements, whether due to error or fraud, and performing procedures that respond to those risks." - Reworded sentence: "Our audits also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the financial statements." - Reworded sentence: "federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.We conducted our audits in accordance with the standards of the PCAOB." **Prior (2024):** ​ ​ ​ ​ ​ Page MONSTER BEVERAGE CORPORATION AND SUBSIDIARIES ​ ​ ​ Reports of Independent Registered Public Accounting Firms Reports of Independent Registered Public Accounting Firms 78 ​ ​ Consolidated Balance Sheets as of December 31, 2023 and 2022 Consolidated Balance Sheets as of December 31, 2023 and 2022 81 ​ ​ Consolidated Statements of Income for the years ended December 31, 2023, 2022 and 2021 Consolidated Statements of Income for the years ended December 31, 2023, 2022 and 2021 82 ​ ​ Consolidated Statements of Comprehensive Income for the years ended December 31, 2023, 2022 and 2021 Consolidated Statements of Comprehensive Income for the years ended December 31, 2023, 2022 and 2021 83 ​ ​ Consolidated Statements of Stockholders' Equity for the years ended December 31, 2023, 2022 and 2021 Consolidated Statements of Stockholders' Equity for the years ended December 31, 2023, 2022 and 2021 84 ​ ​ Consolidated Statements of Cash Flows for the years ended December 31, 2023, 2022 and 2021 Consolidated Statements of Cash Flows for the years ended December 31, 2023, 2022 and 2021 85 ​ ​ Notes to Consolidated Financial Statements Notes to Consolidated Financial Statements 87 ​ ​ Financial Statement Schedule - Valuation and Qualifying Accounts for the years ended December 31, 2023, 2022 and 2021 Financial Statement Schedule - Valuation and Qualifying Accounts for the years ended December 31, 2023, 2022 and 2021 124 ​ ​ ​ 77 77 Table of ContentsReport of Independent Registered Public Accounting FirmTo the Stockholders and the Board of Directors of Monster Beverage Corporation and SubsidiariesOpinion on the Financial StatementsWe have audited the accompanying consolidated balance sheet of Monster Beverage Corporation and Subsidiaries (the Company) as of December 31, 2023, the related consolidated statements of income, comprehensive income, stockholders' equity and cash flows for the year ended December 31, 2023, and the related notes and financial statement schedule listed in the Index in Item 15(a) (collectively referred to as the "consolidated financial statements"). In our opinion, the consolidated financial statements present fairly, in all material respects, the financial position of the Company at December 31, 2023, and the results of its operations and its cash flows for the year ended December 31, 2023, in conformity with U.S. generally accepted accounting principles.As described in Note 1, in 2023 the Company's Board of Directors approved a two-for-one stock split distributed in the form of a stock dividend, and all references to number of shares and per share information in the consolidated financial statements have been adjusted to reflect the stock split on a retroactive basis. We audited the adjustments that were applied to restate the number of shares and per share information reflected in the 2022 and 2021 consolidated financial statements. Our procedures included (a) agreeing the authorization for the two-for-one stock split to the Company's underlying records obtained from management, and (b) testing the mathematical accuracy of the restated number of shares, basic and diluted earnings per share, common stock repurchased and other applicable disclosures such as equity-based compensation. In our opinion, such adjustments are appropriate and have been properly applied. However, we were not engaged to audit, review, or apply any procedures to the 2022 and 2021 consolidated financial statements of the Company other than with respect to such adjustments and, accordingly, we do not express an opinion or any other form of assurance on the 2022 and 2021 consolidated financial statements taken as a whole.We also have audited, in accordance with the standards of the Public Company Accounting Oversight Board (United States) (PCAOB), the Company's internal control over financial reporting as of December 31, 2023, based on criteria established in Internal Control-Integrated Framework issued by the Committee of Sponsoring Organizations of the Treadway Commission (2013 framework), and our report dated February 29, 2024 expressed an unqualified opinion thereon.Basis for OpinionThese financial statements are the responsibility of the Company's management. Our responsibility is to express an opinion on the Company's financial statements based on our audit. We are a public accounting firm registered with the PCAOB and are required to be independent with respect to the Company in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.We conducted our audit in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement, whether due to error or fraud. Our audit included performing procedures to assess the risks of material misstatement of the financial statements, whether due to error or fraud, and performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements. Our audit also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the financial statements. We believe that our audit provides a reasonable basis for our opinion.Critical Audit MatterThe critical audit matter communicated below is a matter arising from the current period audit of the financial statements that was communicated or required to be communicated to the audit committee and that: (1) relates to accounts or disclosures that are material to the financial statements and (2) involved our especially challenging, subjective or complex judgment. 78 Table of Contents Table of Contents Table of Contents Report of Independent Registered Public Accounting FirmTo the Stockholders and the Board of Directors of Monster Beverage Corporation and SubsidiariesOpinion on the Financial StatementsWe have audited the accompanying consolidated balance sheet of Monster Beverage Corporation and Subsidiaries (the Company) as of December 31, 2023, the related consolidated statements of income, comprehensive income, stockholders' equity and cash flows for the year ended December 31, 2023, and the related notes and financial statement schedule listed in the Index in Item 15(a) (collectively referred to as the "consolidated financial statements"). In our opinion, the consolidated financial statements present fairly, in all material respects, the financial position of the Company at December 31, 2023, and the results of its operations and its cash flows for the year ended December 31, 2023, in conformity with U.S. generally accepted accounting principles.As described in Note 1, in 2023 the Company's Board of Directors approved a two-for-one stock split distributed in the form of a stock dividend, and all references to number of shares and per share information in the consolidated financial statements have been adjusted to reflect the stock split on a retroactive basis. We audited the adjustments that were applied to restate the number of shares and per share information reflected in the 2022 and 2021 consolidated financial statements. Our procedures included (a) agreeing the authorization for the two-for-one stock split to the Company's underlying records obtained from management, and (b) testing the mathematical accuracy of the restated number of shares, basic and diluted earnings per share, common stock repurchased and other applicable disclosures such as equity-based compensation. In our opinion, such adjustments are appropriate and have been properly applied. However, we were not engaged to audit, review, or apply any procedures to the 2022 and 2021 consolidated financial statements of the Company other than with respect to such adjustments and, accordingly, we do not express an opinion or any other form of assurance on the 2022 and 2021 consolidated financial statements taken as a whole.We also have audited, in accordance with the standards of the Public Company Accounting Oversight Board (United States) (PCAOB), the Company's internal control over financial reporting as of December 31, 2023, based on criteria established in Internal Control-Integrated Framework issued by the Committee of Sponsoring Organizations of the Treadway Commission (2013 framework), and our report dated February 29, 2024 expressed an unqualified opinion thereon.Basis for OpinionThese financial statements are the responsibility of the Company's management. Our responsibility is to express an opinion on the Company's financial statements based on our audit. We are a public accounting firm registered with the PCAOB and are required to be independent with respect to the Company in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.We conducted our audit in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement, whether due to error or fraud. Our audit included performing procedures to assess the risks of material misstatement of the financial statements, whether due to error or fraud, and performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements. Our audit also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the financial statements. We believe that our audit provides a reasonable basis for our opinion.Critical Audit MatterThe critical audit matter communicated below is a matter arising from the current period audit of the financial statements that was communicated or required to be communicated to the audit committee and that: (1) relates to accounts or disclosures that are material to the financial statements and (2) involved our especially challenging, subjective or complex judgment. **Current (2025):** ​ ​ ​ ​ ​ Page MONSTER BEVERAGE CORPORATION AND SUBSIDIARIES ​ ​ ​ Reports of Independent Registered Public Accounting Firms Reports of Independent Registered Public Accounting Firms 73 ​ ​ Consolidated Balance Sheets as of December 31, 2024 and 2023 Consolidated Balance Sheets as of December 31, 2024 and 2023 76 ​ ​ Consolidated Statements of Income for the years ended December 31, 2024, 2023 and 2022 Consolidated Statements of Income for the years ended December 31, 2024, 2023 and 2022 77 ​ ​ Consolidated Statements of Comprehensive Income for the years ended December 31, 2024, 2023 and 2022 Consolidated Statements of Comprehensive Income for the years ended December 31, 2024, 2023 and 2022 78 ​ ​ Consolidated Statements of Stockholders' Equity for the years ended December 31, 2024, 2023 and 2022 Consolidated Statements of Stockholders' Equity for the years ended December 31, 2024, 2023 and 2022 79 ​ ​ Consolidated Statements of Cash Flows for the years ended December 31, 2024, 2023 and 2022 Consolidated Statements of Cash Flows for the years ended December 31, 2024, 2023 and 2022 80 ​ ​ Notes to Consolidated Financial Statements Notes to Consolidated Financial Statements 82 ​ ​ Financial Statement Schedule - Valuation and Qualifying Accounts for the years ended December 31, 2024, 2023 and 2022 Financial Statement Schedule - Valuation and Qualifying Accounts for the years ended December 31, 2024, 2023 and 2022 118 ​ ​ ​ 72 72 Table of ContentsReport of Independent Registered Public Accounting FirmTo the Stockholders and the Board of Directors of Monster Beverage Corporation and SubsidiariesOpinion on the Financial StatementsWe have audited the accompanying consolidated balance sheets of Monster Beverage Corporation and subsidiaries (the Company) as of December 31, 2024 and 2023, the related consolidated statements of income, comprehensive income, stockholders' equity and cash flows for each of the two years in the period ended December 31, 2024, and the related notes and financial statement schedule listed in the Index in Item 15(a) (collectively referred to as the "consolidated financial statements"). In our opinion, the consolidated financial statements present fairly, in all material respects, the financial position of the Company at December 31, 2024 and 2023, and the results of its operations and its cash flows for each of the two years in the period ended December 31, 2024, in conformity with U.S. generally accepted accounting principles.We also have audited, in accordance with the standards of the Public Company Accounting Oversight Board (United States) (PCAOB), the Company's internal control over financial reporting as of December 31, 2024, based on criteria established in Internal Control-Integrated Framework issued by the Committee of Sponsoring Organizations of the Treadway Commission (2013 framework), and our report dated February 28, 2025 expressed an unqualified opinion thereon.Change in Accounting Principle and Stock Split AdjustmentsWe have audited the adjustments to the 2022 consolidated financial statement footnotes to retrospectively apply the effects from the adoption of Accounting Standards Update 2023-07, Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosures, as described in Note 1. Additionally, as described in Note 1, in 2023 the Company's Board of Directors approved a two-for-one stock split distributed in the form of a stock dividend, and all references to number of shares and per share information in the consolidated financial statements have been adjusted to reflect the stock split on a retroactive basis. We have also audited the adjustments that were retrospectively applied to restate the number of shares and per share information reflected in the 2022 consolidated financial statements. In our opinion, the adjustments for the change in accounting principle and stock split described above are appropriate and have been properly applied. However, we were not engaged to audit, review, or apply any procedures to the 2022 consolidated financial statements of the Company other than with respect to such adjustments and, accordingly, we do not express an opinion or any other form of assurance on the 2022 consolidated financial statements taken as a whole.Basis for OpinionThese financial statements are the responsibility of the Company's management. Our responsibility is to express an opinion on the Company's financial statements based on our audits. We are a public accounting firm registered with the PCAOB and are required to be independent with respect to the Company in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.We conducted our audits in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement, whether due to error or fraud. Our audits included performing procedures to assess the risks of material misstatement of the financial statements, whether due to error or fraud, and performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements. Our audits also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the financial statements. We believe that our audits provide a reasonable basis for our opinion.Critical Audit MatterThe critical audit matter communicated below is a matter arising from the current period audit of the financial statements that was communicated or required to be communicated to the audit committee and that: (1) relates to accounts or disclosures that are material to the financial statements and (2) involved our especially challenging, subjective or complex judgments. The communication of the critical audit matter does not alter in any way our opinion on the consolidated financial statements, taken as a whole, and we are not, by communicating the critical audit matter below, providing a separate opinion on the critical audit matter or on the accounts or disclosure to which it relates.73 Table of Contents Table of Contents Table of Contents Report of Independent Registered Public Accounting FirmTo the Stockholders and the Board of Directors of Monster Beverage Corporation and SubsidiariesOpinion on the Financial StatementsWe have audited the accompanying consolidated balance sheets of Monster Beverage Corporation and subsidiaries (the Company) as of December 31, 2024 and 2023, the related consolidated statements of income, comprehensive income, stockholders' equity and cash flows for each of the two years in the period ended December 31, 2024, and the related notes and financial statement schedule listed in the Index in Item 15(a) (collectively referred to as the "consolidated financial statements"). In our opinion, the consolidated financial statements present fairly, in all material respects, the financial position of the Company at December 31, 2024 and 2023, and the results of its operations and its cash flows for each of the two years in the period ended December 31, 2024, in conformity with U.S. generally accepted accounting principles.We also have audited, in accordance with the standards of the Public Company Accounting Oversight Board (United States) (PCAOB), the Company's internal control over financial reporting as of December 31, 2024, based on criteria established in Internal Control-Integrated Framework issued by the Committee of Sponsoring Organizations of the Treadway Commission (2013 framework), and our report dated February 28, 2025 expressed an unqualified opinion thereon.Change in Accounting Principle and Stock Split AdjustmentsWe have audited the adjustments to the 2022 consolidated financial statement footnotes to retrospectively apply the effects from the adoption of Accounting Standards Update 2023-07, Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosures, as described in Note 1. Additionally, as described in Note 1, in 2023 the Company's Board of Directors approved a two-for-one stock split distributed in the form of a stock dividend, and all references to number of shares and per share information in the consolidated financial statements have been adjusted to reflect the stock split on a retroactive basis. We have also audited the adjustments that were retrospectively applied to restate the number of shares and per share information reflected in the 2022 consolidated financial statements. In our opinion, the adjustments for the change in accounting principle and stock split described above are appropriate and have been properly applied. However, we were not engaged to audit, review, or apply any procedures to the 2022 consolidated financial statements of the Company other than with respect to such adjustments and, accordingly, we do not express an opinion or any other form of assurance on the 2022 consolidated financial statements taken as a whole.Basis for OpinionThese financial statements are the responsibility of the Company's management. Our responsibility is to express an opinion on the Company's financial statements based on our audits. We are a public accounting firm registered with the PCAOB and are required to be independent with respect to the Company in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.We conducted our audits in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement, whether due to error or fraud. Our audits included performing procedures to assess the risks of material misstatement of the financial statements, whether due to error or fraud, and performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements. Our audits also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the financial statements. We believe that our audits provide a reasonable basis for our opinion.Critical Audit MatterThe critical audit matter communicated below is a matter arising from the current period audit of the financial statements that was communicated or required to be communicated to the audit committee and that: (1) relates to accounts or disclosures that are material to the financial statements and (2) involved our especially challenging, subjective or complex judgments. The communication of the critical audit matter does not alter in any way our opinion on the consolidated financial statements, taken as a whole, and we are not, by communicating the critical audit matter below, providing a separate opinion on the critical audit matter or on the accounts or disclosure to which it relates. Report of Independent Registered Public Accounting FirmTo the Stockholders and the Board of Directors of Monster Beverage Corporation and SubsidiariesOpinion on the Financial StatementsWe have audited the accompanying consolidated balance sheets of Monster Beverage Corporation and subsidiaries (the Company) as of December 31, 2024 and 2023, the related consolidated statements of income, comprehensive income, stockholders' equity and cash flows for each of the two years in the period ended December 31, 2024, and the related notes and financial statement schedule listed in the Index in Item 15(a) (collectively referred to as the "consolidated financial statements"). In our opinion, the consolidated financial statements present fairly, in all material respects, the financial position of the Company at December 31, 2024 and 2023, and the results of its operations and its cash flows for each of the two years in the period ended December 31, 2024, in conformity with U.S. generally accepted accounting principles.We also have audited, in accordance with the standards of the Public Company Accounting Oversight Board (United States) (PCAOB), the Company's internal control over financial reporting as of December 31, 2024, based on criteria established in Internal Control-Integrated Framework issued by the Committee of Sponsoring Organizations of the Treadway Commission (2013 framework), and our report dated February 28, 2025 expressed an unqualified opinion thereon.Change in Accounting Principle and Stock Split AdjustmentsWe have audited the adjustments to the 2022 consolidated financial statement footnotes to retrospectively apply the effects from the adoption of Accounting Standards Update 2023-07, Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosures, as described in Note 1. Additionally, as described in Note 1, in 2023 the Company's Board of Directors approved a two-for-one stock split distributed in the form of a stock dividend, and all references to number of shares and per share information in the consolidated financial statements have been adjusted to reflect the stock split on a retroactive basis. We have also audited the adjustments that were retrospectively applied to restate the number of shares and per share information reflected in the 2022 consolidated financial statements. In our opinion, the adjustments for the change in accounting principle and stock split described above are appropriate and have been properly applied. However, we were not engaged to audit, review, or apply any procedures to the 2022 consolidated financial statements of the Company other than with respect to such adjustments and, accordingly, we do not express an opinion or any other form of assurance on the 2022 consolidated financial statements taken as a whole.Basis for OpinionThese financial statements are the responsibility of the Company's management. Our responsibility is to express an opinion on the Company's financial statements based on our audits. We are a public accounting firm registered with the PCAOB and are required to be independent with respect to the Company in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.We conducted our audits in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement, whether due to error or fraud. Our audits included performing procedures to assess the risks of material misstatement of the financial statements, whether due to error or fraud, and performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements. Our audits also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the financial statements. We believe that our audits provide a reasonable basis for our opinion.Critical Audit MatterThe critical audit matter communicated below is a matter arising from the current period audit of the financial statements that was communicated or required to be communicated to the audit committee and that: (1) relates to accounts or disclosures that are material to the financial statements and (2) involved our especially challenging, subjective or complex judgments. The communication of the critical audit matter does not alter in any way our opinion on the consolidated financial statements, taken as a whole, and we are not, by communicating the critical audit matter below, providing a separate opinion on the critical audit matter or on the accounts or disclosure to which it relates. --- ## Modified: Opportunities, Challenges and Risks **Key changes:** - Reworded sentence: "Looking forward, our management has identified certain challenges and risks for the beverage industry and the Company, including our significant commercial relationship with TCCC and TCCC's status as a significant stockholder of the Company, in each case as described above under "Part I, Item 1A - Risk Factors." 44 44 Table of ContentsIn addition, legislation has been proposed and/or adopted at the U.S., state, county and/or municipal level and proposed and/or adopted in certain foreign jurisdictions to restrict the sale of energy and alcohol drinks (including prohibiting the sale of energy and/or alcohol drinks at certain establishments or pursuant to certain governmental programs), limit caffeine and/or alcohol content, require certain product labeling disclosures and/or warnings, impose taxes, limit product sizes or impose age restrictions for the sale of energy and/or alcohol drinks." - Reworded sentence: "Our historical success is attributable, in part, to our introduction of different and innovative energy beverages which have been positively accepted by consumers." - Reworded sentence: "In addition, other key challenges and risks that could impact our Company's future financial results include, but are not limited to: 45 45 Table of Contents●restrictions on imports and sources of supply, duties or tariffs, changes in related government regulations and disruptions in the timely import or export of our products and/or ingredients including flavors, flavor ingredients and supplement ingredients, due to port strikes and/or port congestion, delays due to natural disasters, pandemics, related labor issues or other importation impediments;●protection of our existing intellectual property portfolio of trademarks and copyrights and our continuous pursuit to develop and protect new and innovative trademarks and copyrights for our expanding product lines;●limitations on available quantities of aluminum cans, other packaging materials and ingredients;●limitations on co-packing availability and in particular, consolidation in the co-packing industry; ●increases in ocean and domestic fuel and freight rates; and●the imposition of additional regulations, including regulations restricting the sale of energy or alcohol drinks, limiting caffeine or alcohol content in beverages, requiring product labeling and/or warnings, imposing excise taxes and/or sales taxes, and/or limiting product size and/or age restrictions.See "Part I, Item 1A - Risk Factors" for additional information about risks and uncertainties facing our Company.We believe that the following opportunities exist for us:●domestic and international growth potential of our products;●growth potential of the energy drink and alcohol beverage categories, both domestically and internationally;●growth potential of the affordable energy drink category;●planned and future new product and product line introductions with the objective of increasing sales and/or contributing to higher profitability;●the introduction of new package formats designed to generate strong revenue growth;●package, pricing and channel opportunities to increase profitable growth;●effective strategic positioning to capitalize on industry growth;●broadening distribution/expansion opportunities in both domestic and international markets;●launching and/or relaunching our products and new products into new domestic and international markets and channels;●continued focus on reducing our cost base; and●our entry into the alcohol category and development of our alcohol portfolio.Results of OperationsThis section of the Annual Report on Form 10-K generally discusses 2024 and 2023 items and year-to-year comparisons between 2024 and 2023." **Prior (2024):** Looking forward, our management has identified certain challenges and risks for the beverage industry and the Company, including our significant commercial relationship with TCCC and TCCC's status as a significant stockholder of the Company, in each case as described above under "Part I, Item 1A - Risk Factors." In addition, legislation has been proposed and/or adopted at the U.S., state, county and/or municipal level and proposed and/or adopted in certain foreign jurisdictions to restrict the sale of energy and alcohol drinks (including prohibiting the sale of energy and/or alcohol drinks at certain establishments or pursuant to certain governmental programs), limit caffeine and/or alcohol content, require certain product labeling disclosures and/or warnings, impose taxes, limit product sizes or impose age restrictions for the sale of energy and/or alcohol drinks. In addition, articles critical of the caffeine content in energy drinks and their perceived benefits, or alcohol drinks and their misuse or abuse, as well as articles indicating certain health risks of energy and alcohol drinks have been published. The proposal and/or adoption of such legislation and the publication of such articles, or the future proposal and/or adoption of similar legislation or publication of similar articles, may adversely affect our Company. In addition, uncertainty and/or volatility in our domestic and/or our international economic markets could negatively affect both the stability of our industry and our Company. Furthermore, our growth strategy includes expanding our international business, which exposes us to risks inherent in conducting international operations, including the risks associated with foreign currency exchange rate fluctuations. Consumer discretionary spending also represents a challenge to the successful marketing and sale of our products. Increases in consumer and regulatory awareness of the health problems arising from obesity and inactive lifestyles as well as alcohol consumption continue to represent a challenge. We recognize that obesity and alcohol abuse and misuse are complex and serious public health problems. Our commitment to consumers begins with our broad product line and a wide selection of diet, light and low calorie beverages within our product lines. We continuously strive to meet changing consumer needs through beverage innovation, choice and variety. (See "Part I, Item 1A - Risk Factors"). Our historical success is attributable, in part, to our introduction of different and innovative beverages which have been positively accepted by consumers. Our future success will depend, in part, upon our continued ability to develop and introduce different and innovative beverages that meet consumer preferences, although there can be no assurance of our ability to do so. In order to retain and expand our market share, we must continue to develop and introduce different and innovative beverages and be competitive in the areas of price, quality, method of distribution, brand image and intellectual property protection. The beverage industry is subject to changing consumer preferences that may adversely affect us if we misjudge such preferences. In addition, other key challenges and risks that could impact our Company's future financial results include, but are not limited to: 49 49 Table of Contents●profitable expansion and growth of our family of brands in the competitive market place (See "Part I, Item 1 - Business - Competition" and "Part I, Item 1 - Business - Sales and Marketing");●changes in consumer preferences and demand for our products;●The emergence of new subcategories within the energy and/or alcohol beverage sectors that we fail (or are late) to successfully react to;●economic uncertainty in the United States, Europe and other countries in which we operate;●the risks associated with foreign currency exchange rate fluctuations;●maintenance of our brand image, product quality and corporate reputation;●increasing concern over various environmental, human rights and health matters, including obesity, caffeine and/or alcohol consumption and energy and/or alcohol drinks generally, and changes in regulation and consumer preferences in response to those concerns;●costs of establishing and promoting our brands internationally;●the risks associated with entering into new sectors in the beverage industry, in particular the alcohol beverage sector, and making acquisitions to implement our growth strategy;●increases in costs of raw materials used by us;●restrictions on imports and sources of supply, duties or tariffs, changes in related government regulations and disruptions in the timely import or export of our products and/or ingredients including flavors, flavor ingredients and supplement ingredients, due to port strikes and/or port congestion, delays due to pandemics, related labor issues or other importation impediments;●protection of our existing intellectual property portfolio of trademarks and copyrights and our continuous pursuit to develop and protect new and innovative trademarks and copyrights for our expanding product lines;●limitations on available quantities of aluminum cans, other packaging materials and ingredients;●limitations on co-packing availability and in particular, consolidation in the co-packing industry; ●the long-term impact of Brexit on our business in Europe and the United Kingdom; ●increases in ocean and domestic fuel and freight rates; and●the imposition of additional regulations, including regulations restricting the sale of energy or alcohol drinks, limiting caffeine or alcohol content in beverages, requiring product labeling and/or warnings, imposing excise taxes and/or sales taxes, and/or limiting product size and/or age restrictions.See "Part I, Item 1A - Risk Factors" for additional information about risks and uncertainties facing our Company.We believe that the following opportunities exist for us:●domestic and international growth potential of our products;●growth potential of the energy drink and alcohol beverage categories, both domestically and internationally;●growth potential of the affordable energy drink category;●planned and future new product and product line introductions with the objective of increasing sales and/or contributing to higher profitability;●the introduction of new package formats designed to generate strong revenue growth;●package, pricing and channel opportunities to increase profitable growth;●effective strategic positioning to capitalize on industry growth;●broadening distribution/expansion opportunities in both domestic and international markets;50 Table of Contents Table of Contents Table of Contents ●profitable expansion and growth of our family of brands in the competitive market place (See "Part I, Item 1 - Business - Competition" and "Part I, Item 1 - Business - Sales and Marketing");●changes in consumer preferences and demand for our products;●The emergence of new subcategories within the energy and/or alcohol beverage sectors that we fail (or are late) to successfully react to;●economic uncertainty in the United States, Europe and other countries in which we operate;●the risks associated with foreign currency exchange rate fluctuations;●maintenance of our brand image, product quality and corporate reputation;●increasing concern over various environmental, human rights and health matters, including obesity, caffeine and/or alcohol consumption and energy and/or alcohol drinks generally, and changes in regulation and consumer preferences in response to those concerns;●costs of establishing and promoting our brands internationally;●the risks associated with entering into new sectors in the beverage industry, in particular the alcohol beverage sector, and making acquisitions to implement our growth strategy;●increases in costs of raw materials used by us;●restrictions on imports and sources of supply, duties or tariffs, changes in related government regulations and disruptions in the timely import or export of our products and/or ingredients including flavors, flavor ingredients and supplement ingredients, due to port strikes and/or port congestion, delays due to pandemics, related labor issues or other importation impediments;●protection of our existing intellectual property portfolio of trademarks and copyrights and our continuous pursuit to develop and protect new and innovative trademarks and copyrights for our expanding product lines;●limitations on available quantities of aluminum cans, other packaging materials and ingredients;●limitations on co-packing availability and in particular, consolidation in the co-packing industry; ●the long-term impact of Brexit on our business in Europe and the United Kingdom; ●increases in ocean and domestic fuel and freight rates; and●the imposition of additional regulations, including regulations restricting the sale of energy or alcohol drinks, limiting caffeine or alcohol content in beverages, requiring product labeling and/or warnings, imposing excise taxes and/or sales taxes, and/or limiting product size and/or age restrictions.See "Part I, Item 1A - Risk Factors" for additional information about risks and uncertainties facing our Company.We believe that the following opportunities exist for us:●domestic and international growth potential of our products;●growth potential of the energy drink and alcohol beverage categories, both domestically and internationally;●growth potential of the affordable energy drink category;●planned and future new product and product line introductions with the objective of increasing sales and/or contributing to higher profitability;●the introduction of new package formats designed to generate strong revenue growth;●package, pricing and channel opportunities to increase profitable growth;●effective strategic positioning to capitalize on industry growth;●broadening distribution/expansion opportunities in both domestic and international markets; See "Part I, Item 1A - Risk Factors" for additional information about risks and uncertainties facing our Company. We believe that the following opportunities exist for us: 50 50 Table of Contents●launching and/or relaunching our products and new products into new domestic and international markets and channels;●continued focus on reducing our cost base; and●our entry into the alcohol category and development of our alcohol portfolio.Results of OperationsThis section of the Annual Report on Form 10-K generally discusses 2023 and 2022 items and year-to-year comparisons between 2023 and 2022. A detailed discussion of 2021 items and year-to-year comparisons between 2022 and 2021 that are not included in this Annual Report on Form 10-K can be found in "Management's Discussion and Analysis of Financial Condition and Results of Operations" in Part II, Item 7 of the Company's Annual Report on Form 10-K for the fiscal year ended December 31, 2022.The following table sets forth key statistics for the years ended December 31, 2023, 2022 and 2021, respectively.​​​​​​​​​​​​​​​(In thousands, except per share amounts) ​ ​​ ​​ ​Percentage​Percentage​​​​​​​​​​​​Change​Change​​ 2023 2022 2021 23 vs. 22 22 vs. 21​Net sales1​$ 7,140,027​$ 6,311,050​$ 5,541,352​ 13.1% 13.9%Cost of sales​ 3,345,821​ 3,136,483​ 2,432,839​ 6.7% 28.9%Gross profit*1​ 3,794,206​ 3,174,567​ 3,108,513​ 19.5% 2.1%Gross profit as a percentage of net sales​ 53.1% 50.3% 56.1%​​​​​​​​​​​​​​​​​​​Operating expenses​ 1,840,851​ 1,589,846​ 1,311,046​ 15.8% 21.3%Operating expenses as a percentage of net sales​ 25.8% 25.2% 23.7%​​​​​​​​​​​​​​​​​​​Operating income1​ 1,953,355​ 1,584,721​ 1,797,467​ 23.3% (11.8)%Operating income as a percentage of net sales​ 27.4% 25.1% 32.4%​​​​​​​​​​​​​​​​​​​Interest and other income (expense), net​ 115,127​ (12,757)​ 3,952​ 1,002.5% (422.8)%​​​​​​​​​​​​​​​Income before provision for income taxes1​ 2,068,482​ 1,571,964​ 1,801,419​ 31.6% (12.7)%​​​​​​​​​​​​​​​Provision for income taxes​ 437,494​ 380,340​ 423,944​ 15.0% (10.3)%​​​​​​​​​​​​​​​Income taxes as a percentage of income before taxes​ 21.2% 24.2% 23.5%​​​​​​​​​​​​​​​​​​​Net income1​$ 1,630,988​$ 1,191,624​$ 1,377,475​ 36.9% (13.5)%Net income as a percentage of net sales​ 22.8% 18.9% 24.9%​​​​​​​​​​​​​​​​​​​Net income per common share:​ ​​ ​​ ​​​​​​Basic​$ 1.56​$ 1.13​$ 1.30​ 38.0% (13.2)%Diluted​$ 1.54​$ 1.12​$ 1.29​ 38.0% (13.1)%​​​​​​​​​​​​​​​Energy Drink case sales (in thousands) (in 192‑ounce case equivalents)​ 769,241​ 701,677​ 613,441​ 9.6% 14.4%​1Includes $40.0 million, $40.0 million and $41.5 million for the years ended December 31, 2023, 2022 and 2021, respectively, related to the recognition of deferred revenue.*Gross profit may not be comparable to that of other entities since some entities include all costs associated with their distribution process in cost of sales, whereas others exclude certain costs and instead include such costs within another line item such as operating expenses. We include out-bound freight and warehouse costs in operating expenses rather than in cost of sales.51 Table of Contents Table of Contents Table of Contents ●launching and/or relaunching our products and new products into new domestic and international markets and channels;●continued focus on reducing our cost base; and●our entry into the alcohol category and development of our alcohol portfolio.Results of OperationsThis section of the Annual Report on Form 10-K generally discusses 2023 and 2022 items and year-to-year comparisons between 2023 and 2022. A detailed discussion of 2021 items and year-to-year comparisons between 2022 and 2021 that are not included in this Annual Report on Form 10-K can be found in "Management's Discussion and Analysis of Financial Condition and Results of Operations" in Part II, Item 7 of the Company's Annual Report on Form 10-K for the fiscal year ended December 31, 2022.The following table sets forth key statistics for the years ended December 31, 2023, 2022 and 2021, respectively.​​​​​​​​​​​​​​​(In thousands, except per share amounts) ​ ​​ ​​ ​Percentage​Percentage​​​​​​​​​​​​Change​Change​​ 2023 2022 2021 23 vs. 22 22 vs. 21​Net sales1​$ 7,140,027​$ 6,311,050​$ 5,541,352​ 13.1% 13.9%Cost of sales​ 3,345,821​ 3,136,483​ 2,432,839​ 6.7% 28.9%Gross profit*1​ 3,794,206​ 3,174,567​ 3,108,513​ 19.5% 2.1%Gross profit as a percentage of net sales​ 53.1% 50.3% 56.1%​​​​​​​​​​​​​​​​​​​Operating expenses​ 1,840,851​ 1,589,846​ 1,311,046​ 15.8% 21.3%Operating expenses as a percentage of net sales​ 25.8% 25.2% 23.7%​​​​​​​​​​​​​​​​​​​Operating income1​ 1,953,355​ 1,584,721​ 1,797,467​ 23.3% (11.8)%Operating income as a percentage of net sales​ 27.4% 25.1% 32.4%​​​​​​​​​​​​​​​​​​​Interest and other income (expense), net​ 115,127​ (12,757)​ 3,952​ 1,002.5% (422.8)%​​​​​​​​​​​​​​​Income before provision for income taxes1​ 2,068,482​ 1,571,964​ 1,801,419​ 31.6% (12.7)%​​​​​​​​​​​​​​​Provision for income taxes​ 437,494​ 380,340​ 423,944​ 15.0% (10.3)%​​​​​​​​​​​​​​​Income taxes as a percentage of income before taxes​ 21.2% 24.2% 23.5%​​​​​​​​​​​​​​​​​​​Net income1​$ 1,630,988​$ 1,191,624​$ 1,377,475​ 36.9% (13.5)%Net income as a percentage of net sales​ 22.8% 18.9% 24.9%​​​​​​​​​​​​​​​​​​​Net income per common share:​ ​​ ​​ ​​​​​​Basic​$ 1.56​$ 1.13​$ 1.30​ 38.0% (13.2)%Diluted​$ 1.54​$ 1.12​$ 1.29​ 38.0% (13.1)%​​​​​​​​​​​​​​​Energy Drink case sales (in thousands) (in 192‑ounce case equivalents)​ 769,241​ 701,677​ 613,441​ 9.6% 14.4%​1Includes $40.0 million, $40.0 million and $41.5 million for the years ended December 31, 2023, 2022 and 2021, respectively, 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. **Current (2025):** Looking forward, our management has identified certain challenges and risks for the beverage industry and the Company, including our significant commercial relationship with TCCC and TCCC's status as a significant stockholder of the Company, in each case as described above under "Part I, Item 1A - Risk Factors." 44 44 Table of ContentsIn addition, legislation has been proposed and/or adopted at the U.S., state, county and/or municipal level and proposed and/or adopted in certain foreign jurisdictions to restrict the sale of energy and alcohol drinks (including prohibiting the sale of energy and/or alcohol drinks at certain establishments or pursuant to certain governmental programs), limit caffeine and/or alcohol content, require certain product labeling disclosures and/or warnings, impose taxes, limit product sizes or impose age restrictions for the sale of energy and/or alcohol drinks. In addition, articles critical of the caffeine content in energy drinks and their perceived benefits, or alcohol drinks and their misuse or abuse, as well as articles indicating certain health risks of energy and alcohol drinks have been published. The proposal and/or adoption of such legislation and the publication of such articles, or the future proposal and/or adoption of similar legislation or publication of similar articles, may adversely affect our Company. In addition, uncertainty and/or volatility in our domestic and/or our international economic markets could negatively affect both the stability of our industry and our Company. Furthermore, our growth strategy includes expanding our international business, which exposes us to risks inherent in conducting international operations, including the risks associated with foreign currency exchange rate fluctuations. Consumer discretionary spending also represents a challenge to the successful marketing and sale of our products. Increases in consumer and regulatory awareness of the health problems arising from obesity and inactive lifestyles as well as alcohol consumption continue to represent a challenge. We recognize that obesity and alcohol abuse and misuse are complex and serious public health problems. Our commitment to consumers begins with our broad product line and a wide selection of diet, light and low calorie beverages within our product lines. We continuously strive to meet changing consumer needs through beverage innovation, choice and variety. (See "Part I, Item 1A - Risk Factors").Our historical success is attributable, in part, to our introduction of different and innovative energy beverages which have been positively accepted by consumers. Our future success will depend, in part, upon our continued ability to develop and introduce different and innovative beverages that meet consumer preferences, although there can be no assurance of our ability to do so. In order to retain and expand our market share, we must continue to develop and introduce different and innovative beverages and be competitive in the areas of price, quality, method of distribution, brand image and intellectual property protection. The beverage industry is subject to changing consumer preferences that may adversely affect us if we misjudge such preferences.In addition, other key challenges and risks that could impact our Company's future financial results include, but are not limited to:●the risks associated with the realization of benefits from our relationship with TCCC;●profitable expansion and growth of our family of brands in the competitive market place (See "Part I, Item 1 - Business - Competition" and "Part I, Item 1 - Business - Sales and Marketing");●changes in consumer preferences and demand for our products;●the emergence of new subcategories within the energy and/or alcohol beverage sectors that we fail (or are late) to successfully react to;●economic uncertainty in the United States, Europe and other countries in which we operate;●the risks associated with foreign currency exchange rate fluctuations;●maintenance of our brand image, product quality and corporate reputation;●increasing concern over various environmental, human rights and health matters, including obesity, caffeine and/or alcohol consumption and energy and/or alcohol drinks generally, and changes in regulation and consumer preferences in response to those concerns;●costs of establishing and promoting our brands internationally;●the risks associated with entering into new sectors in the beverage industry, in particular the alcohol beverage sector, and making acquisitions to implement our growth strategy;●increases in costs of raw materials used by us;45 Table of Contents Table of Contents Table of Contents In addition, legislation has been proposed and/or adopted at the U.S., state, county and/or municipal level and proposed and/or adopted in certain foreign jurisdictions to restrict the sale of energy and alcohol drinks (including prohibiting the sale of energy and/or alcohol drinks at certain establishments or pursuant to certain governmental programs), limit caffeine and/or alcohol content, require certain product labeling disclosures and/or warnings, impose taxes, limit product sizes or impose age restrictions for the sale of energy and/or alcohol drinks. In addition, articles critical of the caffeine content in energy drinks and their perceived benefits, or alcohol drinks and their misuse or abuse, as well as articles indicating certain health risks of energy and alcohol drinks have been published. The proposal and/or adoption of such legislation and the publication of such articles, or the future proposal and/or adoption of similar legislation or publication of similar articles, may adversely affect our Company. In addition, uncertainty and/or volatility in our domestic and/or our international economic markets could negatively affect both the stability of our industry and our Company. Furthermore, our growth strategy includes expanding our international business, which exposes us to risks inherent in conducting international operations, including the risks associated with foreign currency exchange rate fluctuations. Consumer discretionary spending also represents a challenge to the successful marketing and sale of our products. Increases in consumer and regulatory awareness of the health problems arising from obesity and inactive lifestyles as well as alcohol consumption continue to represent a challenge. We recognize that obesity and alcohol abuse and misuse are complex and serious public health problems. Our commitment to consumers begins with our broad product line and a wide selection of diet, light and low calorie beverages within our product lines. We continuously strive to meet changing consumer needs through beverage innovation, choice and variety. (See "Part I, Item 1A - Risk Factors").Our historical success is attributable, in part, to our introduction of different and innovative energy beverages which have been positively accepted by consumers. Our future success will depend, in part, upon our continued ability to develop and introduce different and innovative beverages that meet consumer preferences, although there can be no assurance of our ability to do so. In order to retain and expand our market share, we must continue to develop and introduce different and innovative beverages and be competitive in the areas of price, quality, method of distribution, brand image and intellectual property protection. The beverage industry is subject to changing consumer preferences that may adversely affect us if we misjudge such preferences.In addition, other key challenges and risks that could impact our Company's future financial results include, but are not limited to:●the risks associated with the realization of benefits from our relationship with TCCC;●profitable expansion and growth of our family of brands in the competitive market place (See "Part I, Item 1 - Business - Competition" and "Part I, Item 1 - Business - Sales and Marketing");●changes in consumer preferences and demand for our products;●the emergence of new subcategories within the energy and/or alcohol beverage sectors that we fail (or are late) to successfully react to;●economic uncertainty in the United States, Europe and other countries in which we operate;●the risks associated with foreign currency exchange rate fluctuations;●maintenance of our brand image, product quality and corporate reputation;●increasing concern over various environmental, human rights and health matters, including obesity, caffeine and/or alcohol consumption and energy and/or alcohol drinks generally, and changes in regulation and consumer preferences in response to those concerns;●costs of establishing and promoting our brands internationally;●the risks associated with entering into new sectors in the beverage industry, in particular the alcohol beverage sector, and making acquisitions to implement our growth strategy;●increases in costs of raw materials used by us; In addition, legislation has been proposed and/or adopted at the U.S., state, county and/or municipal level and proposed and/or adopted in certain foreign jurisdictions to restrict the sale of energy and alcohol drinks (including prohibiting the sale of energy and/or alcohol drinks at certain establishments or pursuant to certain governmental programs), limit caffeine and/or alcohol content, require certain product labeling disclosures and/or warnings, impose taxes, limit product sizes or impose age restrictions for the sale of energy and/or alcohol drinks. In addition, articles critical of the caffeine content in energy drinks and their perceived benefits, or alcohol drinks and their misuse or abuse, as well as articles indicating certain health risks of energy and alcohol drinks have been published. The proposal and/or adoption of such legislation and the publication of such articles, or the future proposal and/or adoption of similar legislation or publication of similar articles, may adversely affect our Company. In addition, uncertainty and/or volatility in our domestic and/or our international economic markets could negatively affect both the stability of our industry and our Company. Furthermore, our growth strategy includes expanding our international business, which exposes us to risks inherent in conducting international operations, including the risks associated with foreign currency exchange rate fluctuations. Consumer discretionary spending also represents a challenge to the successful marketing and sale of our products. Increases in consumer and regulatory awareness of the health problems arising from obesity and inactive lifestyles as well as alcohol consumption continue to represent a challenge. We recognize that obesity and alcohol abuse and misuse are complex and serious public health problems. Our commitment to consumers begins with our broad product line and a wide selection of diet, light and low calorie beverages within our product lines. We continuously strive to meet changing consumer needs through beverage innovation, choice and variety. (See "Part I, Item 1A - Risk Factors").Our historical success is attributable, in part, to our introduction of different and innovative energy beverages which have been positively accepted by consumers. Our future success will depend, in part, upon our continued ability to develop and introduce different and innovative beverages that meet consumer preferences, although there can be no assurance of our ability to do so. In order to retain and expand our market share, we must continue to develop and introduce different and innovative beverages and be competitive in the areas of price, quality, method of distribution, brand image and intellectual property protection. The beverage industry is subject to changing consumer preferences that may adversely affect us if we misjudge such preferences.In addition, other key challenges and risks that could impact our Company's future financial results include, but are not limited to:●the risks associated with the realization of benefits from our relationship with TCCC;●profitable expansion and growth of our family of brands in the competitive market place (See "Part I, Item 1 - Business - Competition" and "Part I, Item 1 - Business - Sales and Marketing");●changes in consumer preferences and demand for our products;●the emergence of new subcategories within the energy and/or alcohol beverage sectors that we fail (or are late) to successfully react to;●economic uncertainty in the United States, Europe and other countries in which we operate;●the risks associated with foreign currency exchange rate fluctuations;●maintenance of our brand image, product quality and corporate reputation;●increasing concern over various environmental, human rights and health matters, including obesity, caffeine and/or alcohol consumption and energy and/or alcohol drinks generally, and changes in regulation and consumer preferences in response to those concerns;●costs of establishing and promoting our brands internationally;●the risks associated with entering into new sectors in the beverage industry, in particular the alcohol beverage sector, and making acquisitions to implement our growth strategy;●increases in costs of raw materials used by us; In addition, legislation has been proposed and/or adopted at the U.S., state, county and/or municipal level and proposed and/or adopted in certain foreign jurisdictions to restrict the sale of energy and alcohol drinks (including prohibiting the sale of energy and/or alcohol drinks at certain establishments or pursuant to certain governmental programs), limit caffeine and/or alcohol content, require certain product labeling disclosures and/or warnings, impose taxes, limit product sizes or impose age restrictions for the sale of energy and/or alcohol drinks. In addition, articles critical of the caffeine content in energy drinks and their perceived benefits, or alcohol drinks and their misuse or abuse, as well as articles indicating certain health risks of energy and alcohol drinks have been published. The proposal and/or adoption of such legislation and the publication of such articles, or the future proposal and/or adoption of similar legislation or publication of similar articles, may adversely affect our Company. In addition, uncertainty and/or volatility in our domestic and/or our international economic markets could negatively affect both the stability of our industry and our Company. Furthermore, our growth strategy includes expanding our international business, which exposes us to risks inherent in conducting international operations, including the risks associated with foreign currency exchange rate fluctuations. Consumer discretionary spending also represents a challenge to the successful marketing and sale of our products. Increases in consumer and regulatory awareness of the health problems arising from obesity and inactive lifestyles as well as alcohol consumption continue to represent a challenge. We recognize that obesity and alcohol abuse and misuse are complex and serious public health problems. Our commitment to consumers begins with our broad product line and a wide selection of diet, light and low calorie beverages within our product lines. We continuously strive to meet changing consumer needs through beverage innovation, choice and variety. (See "Part I, Item 1A - Risk Factors"). Our historical success is attributable, in part, to our introduction of different and innovative energy beverages which have been positively accepted by consumers. Our future success will depend, in part, upon our continued ability to develop and introduce different and innovative beverages that meet consumer preferences, although there can be no assurance of our ability to do so. In order to retain and expand our market share, we must continue to develop and introduce different and innovative beverages and be competitive in the areas of price, quality, method of distribution, brand image and intellectual property protection. The beverage industry is subject to changing consumer preferences that may adversely affect us if we misjudge such preferences. In addition, other key challenges and risks that could impact our Company's future financial results include, but are not limited to: 45 45 Table of Contents●restrictions on imports and sources of supply, duties or tariffs, changes in related government regulations and disruptions in the timely import or export of our products and/or ingredients including flavors, flavor ingredients and supplement ingredients, due to port strikes and/or port congestion, delays due to natural disasters, pandemics, related labor issues or other importation impediments;●protection of our existing intellectual property portfolio of trademarks and copyrights and our continuous pursuit to develop and protect new and innovative trademarks and copyrights for our expanding product lines;●limitations on available quantities of aluminum cans, other packaging materials and ingredients;●limitations on co-packing availability and in particular, consolidation in the co-packing industry; ●increases in ocean and domestic fuel and freight rates; and●the imposition of additional regulations, including regulations restricting the sale of energy or alcohol drinks, limiting caffeine or alcohol content in beverages, requiring product labeling and/or warnings, imposing excise taxes and/or sales taxes, and/or limiting product size and/or age restrictions.See "Part I, Item 1A - Risk Factors" for additional information about risks and uncertainties facing our Company.We believe that the following opportunities exist for us:●domestic and international growth potential of our products;●growth potential of the energy drink and alcohol beverage categories, both domestically and internationally;●growth potential of the affordable energy drink category;●planned and future new product and product line introductions with the objective of increasing sales and/or contributing to higher profitability;●the introduction of new package formats designed to generate strong revenue growth;●package, pricing and channel opportunities to increase profitable growth;●effective strategic positioning to capitalize on industry growth;●broadening distribution/expansion opportunities in both domestic and international markets;●launching and/or relaunching our products and new products into new domestic and international markets and channels;●continued focus on reducing our cost base; and●our entry into the alcohol category and development of our alcohol portfolio.Results of OperationsThis section of the Annual Report on Form 10-K generally discusses 2024 and 2023 items and year-to-year comparisons between 2024 and 2023. A detailed discussion of 2022 items and year-to-year comparisons between 2023 and 2022 that are not included in this Annual Report on Form 10-K can be found in "Management's Discussion and Analysis of Financial Condition and Results of Operations" in Part II, Item 7 of the Company's Annual Report on Form 10-K for the fiscal year ended December 31, 2023.46 Table of Contents Table of Contents Table of Contents ●restrictions on imports and sources of supply, duties or tariffs, changes in related government regulations and disruptions in the timely import or export of our products and/or ingredients including flavors, flavor ingredients and supplement ingredients, due to port strikes and/or port congestion, delays due to natural disasters, pandemics, related labor issues or other importation impediments;●protection of our existing intellectual property portfolio of trademarks and copyrights and our continuous pursuit to develop and protect new and innovative trademarks and copyrights for our expanding product lines;●limitations on available quantities of aluminum cans, other packaging materials and ingredients;●limitations on co-packing availability and in particular, consolidation in the co-packing industry; ●increases in ocean and domestic fuel and freight rates; and●the imposition of additional regulations, including regulations restricting the sale of energy or alcohol drinks, limiting caffeine or alcohol content in beverages, requiring product labeling and/or warnings, imposing excise taxes and/or sales taxes, and/or limiting product size and/or age restrictions.See "Part I, Item 1A - Risk Factors" for additional information about risks and uncertainties facing our Company.We believe that the following opportunities exist for us:●domestic and international growth potential of our products;●growth potential of the energy drink and alcohol beverage categories, both domestically and internationally;●growth potential of the affordable energy drink category;●planned and future new product and product line introductions with the objective of increasing sales and/or contributing to higher profitability;●the introduction of new package formats designed to generate strong revenue growth;●package, pricing and channel opportunities to increase profitable growth;●effective strategic positioning to capitalize on industry growth;●broadening distribution/expansion opportunities in both domestic and international markets;●launching and/or relaunching our products and new products into new domestic and international markets and channels;●continued focus on reducing our cost base; and●our entry into the alcohol category and development of our alcohol portfolio.Results of OperationsThis section of the Annual Report on Form 10-K generally discusses 2024 and 2023 items and year-to-year comparisons between 2024 and 2023. A detailed discussion of 2022 items and year-to-year comparisons between 2023 and 2022 that are not included in this Annual Report on Form 10-K can be found in "Management's Discussion and Analysis of Financial Condition and Results of Operations" in Part II, Item 7 of the Company's Annual Report on Form 10-K for the fiscal year ended December 31, 2023. ●restrictions on imports and sources of supply, duties or tariffs, changes in related government regulations and disruptions in the timely import or export of our products and/or ingredients including flavors, flavor ingredients and supplement ingredients, due to port strikes and/or port congestion, delays due to natural disasters, pandemics, related labor issues or other importation impediments;●protection of our existing intellectual property portfolio of trademarks and copyrights and our continuous pursuit to develop and protect new and innovative trademarks and copyrights for our expanding product lines;●limitations on available quantities of aluminum cans, other packaging materials and ingredients;●limitations on co-packing availability and in particular, consolidation in the co-packing industry; ●increases in ocean and domestic fuel and freight rates; and●the imposition of additional regulations, including regulations restricting the sale of energy or alcohol drinks, limiting caffeine or alcohol content in beverages, requiring product labeling and/or warnings, imposing excise taxes and/or sales taxes, and/or limiting product size and/or age restrictions.See "Part I, Item 1A - Risk Factors" for additional information about risks and uncertainties facing our Company.We believe that the following opportunities exist for us:●domestic and international growth potential of our products;●growth potential of the energy drink and alcohol beverage categories, both domestically and internationally;●growth potential of the affordable energy drink category;●planned and future new product and product line introductions with the objective of increasing sales and/or contributing to higher profitability;●the introduction of new package formats designed to generate strong revenue growth;●package, pricing and channel opportunities to increase profitable growth;●effective strategic positioning to capitalize on industry growth;●broadening distribution/expansion opportunities in both domestic and international markets;●launching and/or relaunching our products and new products into new domestic and international markets and channels;●continued focus on reducing our cost base; and●our entry into the alcohol category and development of our alcohol portfolio.Results of OperationsThis section of the Annual Report on Form 10-K generally discusses 2024 and 2023 items and year-to-year comparisons between 2024 and 2023. A detailed discussion of 2022 items and year-to-year comparisons between 2023 and 2022 that are not included in this Annual Report on Form 10-K can be found in "Management's Discussion and Analysis of Financial Condition and Results of Operations" in Part II, Item 7 of the Company's Annual Report on Form 10-K for the fiscal year ended December 31, 2023. See "Part I, Item 1A - Risk Factors" for additional information about risks and uncertainties facing our Company. We believe that the following opportunities exist for us: --- ## Modified: Results of Operations **Key changes:** - Reworded sentence: "This section of the Annual Report on Form 10-K generally discusses 2024 and 2023 items and year-to-year comparisons between 2024 and 2023." - Reworded sentence: "Net Sales Net sales were $7.49 billion for the year ended December 31, 2024, an increase of approximately $352.7 million, or 4.9% higher than net sales of $7.14 billion for the year ended December 31, 2023." - Reworded sentence: "Net changes in foreign currency exchange rates had an unfavorable impact on net sales of approximately $247.1 million for the year ended December 31, 2024." **Prior (2024):** This section of the Annual Report on Form 10-K generally discusses 2023 and 2022 items and year-to-year comparisons between 2023 and 2022. A detailed discussion of 2021 items and year-to-year comparisons between 2022 and 2021 that are not included in this Annual Report on Form 10-K can be found in "Management's Discussion and Analysis of Financial Condition and Results of Operations" in Part II, Item 7 of the Company's Annual Report on Form 10-K for the fiscal year ended December 31, 2022. The following table sets forth key statistics for the years ended December 31, 2023, 2022 and 2021, respectively. ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ (In thousands, except per share amounts) ​ ​ ​ ​ ​ ​ Percentage ​ Percentage ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Change ​ Change ​ ​ 2023 2022 2021 23 vs. 22 22 vs. 21 ​ Net sales1 ​ $ 7,140,027 ​ $ 6,311,050 ​ $ 5,541,352 ​ 13.1 % 13.9 % Cost of sales ​ 3,345,821 ​ 3,136,483 ​ 2,432,839 ​ 6.7 % 28.9 % Gross profit*1 ​ 3,794,206 ​ 3,174,567 ​ 3,108,513 ​ 19.5 % 2.1 % Gross profit as a percentage of net sales ​ 53.1 % 50.3 % 56.1 % ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Operating expenses ​ 1,840,851 ​ 1,589,846 ​ 1,311,046 ​ 15.8 % 21.3 % Operating expenses as a percentage of net sales ​ 25.8 % 25.2 % 23.7 % ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Operating income1 ​ 1,953,355 ​ 1,584,721 ​ 1,797,467 ​ 23.3 % (11.8) % Operating income as a percentage of net sales ​ 27.4 % 25.1 % 32.4 % ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Interest and other income (expense), net ​ 115,127 ​ (12,757) ​ 3,952 ​ 1,002.5 % (422.8) % ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Income before provision for income taxes1 ​ 2,068,482 ​ 1,571,964 ​ 1,801,419 ​ 31.6 % (12.7) % ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Provision for income taxes ​ 437,494 ​ 380,340 ​ 423,944 ​ 15.0 % (10.3) % ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Income taxes as a percentage of income before taxes ​ 21.2 % 24.2 % 23.5 % ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Net income1 ​ $ 1,630,988 ​ $ 1,191,624 ​ $ 1,377,475 ​ 36.9 % (13.5) % Net income as a percentage of net sales ​ 22.8 % 18.9 % 24.9 % ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Net income per common share: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Basic ​ $ 1.56 ​ $ 1.13 ​ $ 1.30 ​ 38.0 % (13.2) % Diluted ​ $ 1.54 ​ $ 1.12 ​ $ 1.29 ​ 38.0 % (13.1) % ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Energy Drink case sales (in thousands) (in 192‑ounce case equivalents) ​ 769,241 ​ 701,677 ​ 613,441 ​ 9.6 % 14.4 % ​ 1Includes $40.0 million, $40.0 million and $41.5 million for the years ended December 31, 2023, 2022 and 2021, respectively, 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. 51 51 Table of ContentsNet SalesNet sales were $7.14 billion for the year ended December 31, 2023, an increase of approximately $829.0 million, or 13.1% higher than net sales of $6.31 billion for the year ended December 31, 2022. 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 $146.7 million for the year ended December 31, 2023. Net sales on a foreign currency adjusted basis increased 15.5% for the year ended December 31, 2023.​Net sales were $2.53 billion and $2.20 billion for the years ended December 31, 2023 and 2022, respectively, in EMEA, Asia Pacific (including Oceania), Latin America and the Caribbean.​Net sales for the Monster Energy® Drinks segment were $6.56 billion for the year ended December 31, 2023, an increase of approximately $721.9 million, or 12.4% higher than net sales of $5.83 billion for the year ended December 31, 2022. 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. Net changes in foreign currency exchange rates had an unfavorable impact on net sales for the Monster Energy® Drinks segment of approximately $124.3 million for the year ended December 31, 2023. Net sales for the Monster Energy® Drinks segment on a foreign currency adjusted basis increased 14.5% for the year ended December 31, 2023.​Net sales for the Strategic Brands segment were $376.6 million for the year ended December 31, 2023, an increase of approximately $23.1 million, or 6.5% higher than net sales of $353.5 million for the year ended December 31, 2022. Net sales for the Strategic Brands segment increased primarily due to increased worldwide sales by volume of our NOS®, Predator® and Fury® brand energy drinks as a result of increased consumer demand. Net changes in foreign currency exchange rates had an unfavorable impact on net sales of approximately $22.4 million for the Strategic Brands segment for the year ended December 31, 2023. Net sales for the Strategic Brands segment on a foreign currency adjusted basis increased 12.9% for the year ended December 31, 2023.​Net sales for the Alcohol Brands segment were $184.9 million for the year ended December 31, 2023, an increase of approximately $83.5 million, or 82.3% higher than net sales of $101.4 million for the year ended December 31, 2022 (effectively from February 17, 2022 to December 31, 2022). Net sales of The Beast Unleashed® FMBs, which launched during the 2023 first quarter in the United States on a rolling state basis, were $86.7 million for the year ended December 31, 2023.​Net sales for the Other segment were $23.5 million for the year ended December 31, 2023, an increase of approximately $0.6 million, or 2.4% higher than net sales of $22.9 million for the year ended December 31, 2022.​Case sales for our energy drink products, in 192-ounce case equivalents, were 769.2 million cases for the year ended December 31, 2023, an increase of approximately 67.6 million cases or 9.6% higher than case sales of 701.7 million cases for the year ended December 31, 2022. The overall average net sales per case for our energy drink products (excluding net sales of Alcohol Brands and Other segments) increased to $9.01 for the year ended December 31, 2023, which was 2.2% higher than the average net sales per case of $8.82 for the year ended December 31, 2022. The increase in the average net sales per case was primarily the result of the Pricing Actions.​Case sales for our craft beers, hard seltzers and FMBs, in 192-ounce equivalents, were 13.1 million cases for the year ended December 31, 2023, an increase of approximately 6.6 million cases or 101.3% higher than case sales of 6.5 million cases for the year ended December 31, 2022 (effectively from February 17, 2022 to December 31, 2022). Barrel sales for our craft beers, hard seltzers and FMBs, in 31 U.S. gallon equivalents, were 0.6 million barrels for the year ended December 31, 2023, an increase of approximately 0.3 million barrels or 101.3% higher than barrel sales of 0.3 million barrels for the year ended December 31, 2022 (effectively from February 17, 2022 to December 31, 2022).52 Table of Contents Table of Contents Table of Contents Net SalesNet sales were $7.14 billion for the year ended December 31, 2023, an increase of approximately $829.0 million, or 13.1% higher than net sales of $6.31 billion for the year ended December 31, 2022. 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 $146.7 million for the year ended December 31, 2023. Net sales on a foreign currency adjusted basis increased 15.5% for the year ended December 31, 2023.​Net sales were $2.53 billion and $2.20 billion for the years ended December 31, 2023 and 2022, respectively, in EMEA, Asia Pacific (including Oceania), Latin America and the Caribbean.​Net sales for the Monster Energy® Drinks segment were $6.56 billion for the year ended December 31, 2023, an increase of approximately $721.9 million, or 12.4% higher than net sales of $5.83 billion for the year ended December 31, 2022. 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. Net changes in foreign currency exchange rates had an unfavorable impact on net sales for the Monster Energy® Drinks segment of approximately $124.3 million for the year ended December 31, 2023. Net sales for the Monster Energy® Drinks segment on a foreign currency adjusted basis increased 14.5% for the year ended December 31, 2023.​Net sales for the Strategic Brands segment were $376.6 million for the year ended December 31, 2023, an increase of approximately $23.1 million, or 6.5% higher than net sales of $353.5 million for the year ended December 31, 2022. Net sales for the Strategic Brands segment increased primarily due to increased worldwide sales by volume of our NOS®, Predator® and Fury® brand energy drinks as a result of increased consumer demand. Net changes in foreign currency exchange rates had an unfavorable impact on net sales of approximately $22.4 million for the Strategic Brands segment for the year ended December 31, 2023. Net sales for the Strategic Brands segment on a foreign currency adjusted basis increased 12.9% for the year ended December 31, 2023.​Net sales for the Alcohol Brands segment were $184.9 million for the year ended December 31, 2023, an increase of approximately $83.5 million, or 82.3% higher than net sales of $101.4 million for the year ended December 31, 2022 (effectively from February 17, 2022 to December 31, 2022). Net sales of The Beast Unleashed® FMBs, which launched during the 2023 first quarter in the United States on a rolling state basis, were $86.7 million for the year ended December 31, 2023.​Net sales for the Other segment were $23.5 million for the year ended December 31, 2023, an increase of approximately $0.6 million, or 2.4% higher than net sales of $22.9 million for the year ended December 31, 2022.​Case sales for our energy drink products, in 192-ounce case equivalents, were 769.2 million cases for the year ended December 31, 2023, an increase of approximately 67.6 million cases or 9.6% higher than case sales of 701.7 million cases for the year ended December 31, 2022. The overall average net sales per case for our energy drink products (excluding net sales of Alcohol Brands and Other segments) increased to $9.01 for the year ended December 31, 2023, which was 2.2% higher than the average net sales per case of $8.82 for the year ended December 31, 2022. The increase in the average net sales per case was primarily the result of the Pricing Actions.​Case sales for our craft beers, hard seltzers and FMBs, in 192-ounce equivalents, were 13.1 million cases for the year ended December 31, 2023, an increase of approximately 6.6 million cases or 101.3% higher than case sales of 6.5 million cases for the year ended December 31, 2022 (effectively from February 17, 2022 to December 31, 2022). Barrel sales for our craft beers, hard seltzers and FMBs, in 31 U.S. gallon equivalents, were 0.6 million barrels for the year ended December 31, 2023, an increase of approximately 0.3 million barrels or 101.3% higher than barrel sales of 0.3 million barrels for the year ended December 31, 2022 (effectively from February 17, 2022 to December 31, 2022). Net Sales Net sales were $7.14 billion for the year ended December 31, 2023, an increase of approximately $829.0 million, or 13.1% higher than net sales of $6.31 billion for the year ended December 31, 2022. 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 $146.7 million for the year ended December 31, 2023. Net sales on a foreign currency adjusted basis increased 15.5% for the year ended December 31, 2023. ​ Net sales were $2.53 billion and $2.20 billion for the years ended December 31, 2023 and 2022, respectively, in EMEA, Asia Pacific (including Oceania), Latin America and the Caribbean. ​ Net sales for the Monster Energy® Drinks segment were $6.56 billion for the year ended December 31, 2023, an increase of approximately $721.9 million, or 12.4% higher than net sales of $5.83 billion for the year ended December 31, 2022. 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. Net changes in foreign currency exchange rates had an unfavorable impact on net sales for the Monster Energy® Drinks segment of approximately $124.3 million for the year ended December 31, 2023. Net sales for the Monster Energy® Drinks segment on a foreign currency adjusted basis increased 14.5% for the year ended December 31, 2023. ​ Net sales for the Strategic Brands segment were $376.6 million for the year ended December 31, 2023, an increase of approximately $23.1 million, or 6.5% higher than net sales of $353.5 million for the year ended December 31, 2022. Net sales for the Strategic Brands segment increased primarily due to increased worldwide sales by volume of our NOS®, Predator® and Fury® brand energy drinks as a result of increased consumer demand. Net changes in foreign currency exchange rates had an unfavorable impact on net sales of approximately $22.4 million for the Strategic Brands segment for the year ended December 31, 2023. Net sales for the Strategic Brands segment on a foreign currency adjusted basis increased 12.9% for the year ended December 31, 2023. ​ Net sales for the Alcohol Brands segment were $184.9 million for the year ended December 31, 2023, an increase of approximately $83.5 million, or 82.3% higher than net sales of $101.4 million for the year ended December 31, 2022 (effectively from February 17, 2022 to December 31, 2022). Net sales of The Beast Unleashed® FMBs, which launched during the 2023 first quarter in the United States on a rolling state basis, were $86.7 million for the year ended December 31, 2023. ​ Net sales for the Other segment were $23.5 million for the year ended December 31, 2023, an increase of approximately $0.6 million, or 2.4% higher than net sales of $22.9 million for the year ended December 31, 2022. ​ Case sales for our energy drink products, in 192-ounce case equivalents, were 769.2 million cases for the year ended December 31, 2023, an increase of approximately 67.6 million cases or 9.6% higher than case sales of 701.7 million cases for the year ended December 31, 2022. The overall average net sales per case for our energy drink products (excluding net sales of Alcohol Brands and Other segments) increased to $9.01 for the year ended December 31, 2023, which was 2.2% higher than the average net sales per case of $8.82 for the year ended December 31, 2022. The increase in the average net sales per case was primarily the result of the Pricing Actions. ​ Case sales for our craft beers, hard seltzers and FMBs, in 192-ounce equivalents, were 13.1 million cases for the year ended December 31, 2023, an increase of approximately 6.6 million cases or 101.3% higher than case sales of 6.5 million cases for the year ended December 31, 2022 (effectively from February 17, 2022 to December 31, 2022). Barrel sales for our craft beers, hard seltzers and FMBs, in 31 U.S. gallon equivalents, were 0.6 million barrels for the year ended December 31, 2023, an increase of approximately 0.3 million barrels or 101.3% higher than barrel sales of 0.3 million barrels for the year ended December 31, 2022 (effectively from February 17, 2022 to December 31, 2022). 52 52 Table of ContentsGross ProfitGross profit was $3.79 billion for the year ended December 31, 2023, an increase of approximately $619.6 million, or 19.5% higher than the gross profit of $3.17 billion for the year ended December 31, 2022.​Gross profit as a percentage of net sales increased to 53.1% for the year ended December 31, 2023 from 50.3% for the year ended December 31, 2022. The increase for the year ended December 31, 2023 was primarily the result of the Pricing Actions, decreased freight-in costs as well as decreased aluminum can costs.Operating Expenses Total operating expenses were $1.84 billion for the year ended December 31, 2023, an increase of approximately $251.0 million, or 15.8% higher than total operating expenses of $1.59 billion for the year ended December 31, 2022.​The increase in operating expenses was primarily due to increased general and administrative expenses of $80.9 million, including travel and entertainment, professional service fees (including legal and accounting) and depreciation and amortization, increased selling and marketing expenses of $92.2 million, including sponsorships and endorsements, point of sale, premiums and allocated trade development, and increased payroll expenses of $82.4 million. In addition, operating expenses for the year ended December 31, 2023 included $16.1 million of transaction costs related to the acquisition of Bang Energy and $42.7 million of impairment charges related to the Alcohol Brands segment (the "Alcohol Impairment Charges"). The Alcohol Impairment Charges, due in part to the continuing challenges in the craft beer and hard seltzer categories, relate to certain non-amortizing intangibles as well as property and equipment, acquired as part of the CANarchy transaction (as defined below in Note 2, "Acquisitions").​Operating expenses as a percentage of net sales for the years ended December 31, 2023 and 2022 were 25.8% and 25.2%, respectively.Operating Income Operating income was $1.95 billion for the year ended December 31, 2023, an increase of approximately $368.6 million, or 23.3% higher than operating income of $1.58 billion for the year ended December 31, 2022. Operating income as a percentage of net sales increased to 27.4% for the year ended December 31, 2023 from 25.1% for the year ended December 31, 2022. Operating income for the year ended December 31, 2023 increased primarily due to an increase of $619.6 million in gross profit partially offset by an increase in operating expenses of $368.6 million, which includes the Alcohol Impairment Charges.​Operating income was $409.3 million and $316.3 million for the years ended December 31, 2023 and 2022, 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 $2.34 billion for the year ended December 31, 2023, an increase of approximately $488.7 million, or 26.4% higher than operating income of $1.85 billion for the year ended December 31, 2022. The increase in operating income for the Monster Energy® Drinks segment was primarily the result of a $572.5 million increase in gross profit.​Operating income for the Strategic Brands segment, exclusive of corporate and unallocated expenses, was $207.1 million for the year ended December 31, 2023, an increase of approximately $9.4 million, or 4.8% higher than operating income of $197.7 million for the year ended December 31, 2022. The increase in operating income for the Strategic Brands segment was primarily the result of a $14.6 million increase in gross profit.​Operating loss for the Alcohol Brands segment, exclusive of corporate and unallocated expenses, was $81.1 million for the year ended December 31, 2023, an increase of approximately $49.6 million, or 157.5% higher than operating loss of 53 Table of Contents Table of Contents Table of Contents Gross ProfitGross profit was $3.79 billion for the year ended December 31, 2023, an increase of approximately $619.6 million, or 19.5% higher than the gross profit of $3.17 billion for the year ended December 31, 2022.​Gross profit as a percentage of net sales increased to 53.1% for the year ended December 31, 2023 from 50.3% for the year ended December 31, 2022. The increase for the year ended December 31, 2023 was primarily the result of the Pricing Actions, decreased freight-in costs as well as decreased aluminum can costs.Operating Expenses Total operating expenses were $1.84 billion for the year ended December 31, 2023, an increase of approximately $251.0 million, or 15.8% higher than total operating expenses of $1.59 billion for the year ended December 31, 2022.​The increase in operating expenses was primarily due to increased general and administrative expenses of $80.9 million, including travel and entertainment, professional service fees (including legal and accounting) and depreciation and amortization, increased selling and marketing expenses of $92.2 million, including sponsorships and endorsements, point of sale, premiums and allocated trade development, and increased payroll expenses of $82.4 million. In addition, operating expenses for the year ended December 31, 2023 included $16.1 million of transaction costs related to the acquisition of Bang Energy and $42.7 million of impairment charges related to the Alcohol Brands segment (the "Alcohol Impairment Charges"). The Alcohol Impairment Charges, due in part to the continuing challenges in the craft beer and hard seltzer categories, relate to certain non-amortizing intangibles as well as property and equipment, acquired as part of the CANarchy transaction (as defined below in Note 2, "Acquisitions").​Operating expenses as a percentage of net sales for the years ended December 31, 2023 and 2022 were 25.8% and 25.2%, respectively.Operating Income Operating income was $1.95 billion for the year ended December 31, 2023, an increase of approximately $368.6 million, or 23.3% higher than operating income of $1.58 billion for the year ended December 31, 2022. Operating income as a percentage of net sales increased to 27.4% for the year ended December 31, 2023 from 25.1% for the year ended December 31, 2022. Operating income for the year ended December 31, 2023 increased primarily due to an increase of $619.6 million in gross profit partially offset by an increase in operating expenses of $368.6 million, which includes the Alcohol Impairment Charges.​Operating income was $409.3 million and $316.3 million for the years ended December 31, 2023 and 2022, 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 $2.34 billion for the year ended December 31, 2023, an increase of approximately $488.7 million, or 26.4% higher than operating income of $1.85 billion for the year ended December 31, 2022. The increase in operating income for the Monster Energy® Drinks segment was primarily the result of a $572.5 million increase in gross profit.​Operating income for the Strategic Brands segment, exclusive of corporate and unallocated expenses, was $207.1 million for the year ended December 31, 2023, an increase of approximately $9.4 million, or 4.8% higher than operating income of $197.7 million for the year ended December 31, 2022. The increase in operating income for the Strategic Brands segment was primarily the result of a $14.6 million increase in gross profit.​Operating loss for the Alcohol Brands segment, exclusive of corporate and unallocated expenses, was $81.1 million for the year ended December 31, 2023, an increase of approximately $49.6 million, or 157.5% higher than operating loss of **Current (2025):** This section of the Annual Report on Form 10-K generally discusses 2024 and 2023 items and year-to-year comparisons between 2024 and 2023. A detailed discussion of 2022 items and year-to-year comparisons between 2023 and 2022 that are not included in this Annual Report on Form 10-K can be found in "Management's Discussion and Analysis of Financial Condition and Results of Operations" in Part II, Item 7 of the Company's Annual Report on Form 10-K for the fiscal year ended December 31, 2023. 46 46 Table of ContentsThe following table sets forth key statistics for the years ended December 31, 2024, 2023 and 2022, respectively.​​​​​​​​​​​​​​​(In thousands, except per share amounts) ​ ​​ ​​ ​Percentage​Percentage​​​​​​​​​​​​Change​Change​​ 2024 2023 2022 24 vs. 23 23 vs. 22​Net sales1​$ 7,492,709​$ 7,140,027​$ 6,311,050​ 4.9% 13.1%Cost of sales​ 3,443,831​ 3,345,821​ 3,136,483​ 2.9% 6.7%Gross profit*1​ 4,048,878​ 3,794,206​ 3,174,567​ 6.7% 19.5%Gross profit as a percentage of net sales​ 54.0% 53.1% 50.3%​​​​​​​​​​​​​​​​​​​Operating expenses​ 2,118,584​ 1,840,851​ 1,589,846​ 15.1% 15.8%Operating expenses as a percentage of net sales​ 28.3% 25.8% 25.2%​​​​​​​​​​​​​​​​​​​Operating income1​ 1,930,294​ 1,953,355​ 1,584,721​ (1.2)% 23.3%Operating income as a percentage of net sales​ 25.8% 27.4% 25.1%​​​​​​​​​​​​​​​​​​​Interest and other income (expense), net​ 59,165​ 115,127​ (12,757)​ (48.6)% 1,002.5%​​​​​​​​​​​​​​​Income before provision for income taxes1​ 1,989,459​ 2,068,482​ 1,571,964​ (3.8)% 31.6%​​​​​​​​​​​​​​​Provision for income taxes​ 480,411​ 437,494​ 380,340​ 9.8% 15.0%Income taxes as a percentage of income before taxes​ 24.1% 21.2% 24.2%​​​​​​​​​​​​​​​​​​​Net income1​$ 1,509,048​$ 1,630,988​$ 1,191,624​ (7.5)% 36.9%Net income as a percentage of net sales​ 20.1% 22.8% 18.9%​​​​​​​​​​​​​​​​​​​Net income per common share:​ ​​ ​​ ​​​​​​Basic​$ 1.50​$ 1.56​$ 1.13​ (3.8)% 38.0%Diluted​$ 1.49​$ 1.54​$ 1.12​ (3.4)% 38.0%​​​​​​​​​​​​​​​Energy Drink case sales (in thousands) (in 192‑ounce case equivalents)​ 846,663​ 769,241​ 701,677​ 10.1% 9.6%​1Includes $39.9 million, $40.0 million and $40.0 million for the years ended December 31, 2024, 2023 and 2022, respectively, 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.Net SalesNet sales were $7.49 billion for the year ended December 31, 2024, an increase of approximately $352.7 million, or 4.9% higher than net sales of $7.14 billion for the year ended December 31, 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 $247.1 million for the year ended December 31, 2024. Net sales on a foreign currency adjusted basis increased 8.4% for the year ended December 31, 2024.Net sales were $2.77 billion and $2.53 billion for the years ended December 31, 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 $245.2 million for the year ended December 31, 2024. Net sales on a foreign currency adjusted basis in EMEA, Asia Pacific (including Oceania), Latin America and the Caribbean increased 19.2% for the year ended December 31, 2024.47 Table of Contents Table of Contents Table of Contents The following table sets forth key statistics for the years ended December 31, 2024, 2023 and 2022, respectively.​​​​​​​​​​​​​​​(In thousands, except per share amounts) ​ ​​ ​​ ​Percentage​Percentage​​​​​​​​​​​​Change​Change​​ 2024 2023 2022 24 vs. 23 23 vs. 22​Net sales1​$ 7,492,709​$ 7,140,027​$ 6,311,050​ 4.9% 13.1%Cost of sales​ 3,443,831​ 3,345,821​ 3,136,483​ 2.9% 6.7%Gross profit*1​ 4,048,878​ 3,794,206​ 3,174,567​ 6.7% 19.5%Gross profit as a percentage of net sales​ 54.0% 53.1% 50.3%​​​​​​​​​​​​​​​​​​​Operating expenses​ 2,118,584​ 1,840,851​ 1,589,846​ 15.1% 15.8%Operating expenses as a percentage of net sales​ 28.3% 25.8% 25.2%​​​​​​​​​​​​​​​​​​​Operating income1​ 1,930,294​ 1,953,355​ 1,584,721​ (1.2)% 23.3%Operating income as a percentage of net sales​ 25.8% 27.4% 25.1%​​​​​​​​​​​​​​​​​​​Interest and other income (expense), net​ 59,165​ 115,127​ (12,757)​ (48.6)% 1,002.5%​​​​​​​​​​​​​​​Income before provision for income taxes1​ 1,989,459​ 2,068,482​ 1,571,964​ (3.8)% 31.6%​​​​​​​​​​​​​​​Provision for income taxes​ 480,411​ 437,494​ 380,340​ 9.8% 15.0%Income taxes as a percentage of income before taxes​ 24.1% 21.2% 24.2%​​​​​​​​​​​​​​​​​​​Net income1​$ 1,509,048​$ 1,630,988​$ 1,191,624​ (7.5)% 36.9%Net income as a percentage of net sales​ 20.1% 22.8% 18.9%​​​​​​​​​​​​​​​​​​​Net income per common share:​ ​​ ​​ ​​​​​​Basic​$ 1.50​$ 1.56​$ 1.13​ (3.8)% 38.0%Diluted​$ 1.49​$ 1.54​$ 1.12​ (3.4)% 38.0%​​​​​​​​​​​​​​​Energy Drink case sales (in thousands) (in 192‑ounce case equivalents)​ 846,663​ 769,241​ 701,677​ 10.1% 9.6%​1Includes $39.9 million, $40.0 million and $40.0 million for the years ended December 31, 2024, 2023 and 2022, respectively, 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.Net SalesNet sales were $7.49 billion for the year ended December 31, 2024, an increase of approximately $352.7 million, or 4.9% higher than net sales of $7.14 billion for the year ended December 31, 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 $247.1 million for the year ended December 31, 2024. Net sales on a foreign currency adjusted basis increased 8.4% for the year ended December 31, 2024.Net sales were $2.77 billion and $2.53 billion for the years ended December 31, 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 $245.2 million for the year ended December 31, 2024. Net sales on a foreign currency adjusted basis in EMEA, Asia Pacific (including Oceania), Latin America and the Caribbean increased 19.2% for the year ended December 31, 2024. The following table sets forth key statistics for the years ended December 31, 2024, 2023 and 2022, respectively.​​​​​​​​​​​​​​​(In thousands, except per share amounts) ​ ​​ ​​ ​Percentage​Percentage​​​​​​​​​​​​Change​Change​​ 2024 2023 2022 24 vs. 23 23 vs. 22​Net sales1​$ 7,492,709​$ 7,140,027​$ 6,311,050​ 4.9% 13.1%Cost of sales​ 3,443,831​ 3,345,821​ 3,136,483​ 2.9% 6.7%Gross profit*1​ 4,048,878​ 3,794,206​ 3,174,567​ 6.7% 19.5%Gross profit as a percentage of net sales​ 54.0% 53.1% 50.3%​​​​​​​​​​​​​​​​​​​Operating expenses​ 2,118,584​ 1,840,851​ 1,589,846​ 15.1% 15.8%Operating expenses as a percentage of net sales​ 28.3% 25.8% 25.2%​​​​​​​​​​​​​​​​​​​Operating income1​ 1,930,294​ 1,953,355​ 1,584,721​ (1.2)% 23.3%Operating income as a percentage of net sales​ 25.8% 27.4% 25.1%​​​​​​​​​​​​​​​​​​​Interest and other income (expense), net​ 59,165​ 115,127​ (12,757)​ (48.6)% 1,002.5%​​​​​​​​​​​​​​​Income before provision for income taxes1​ 1,989,459​ 2,068,482​ 1,571,964​ (3.8)% 31.6%​​​​​​​​​​​​​​​Provision for income taxes​ 480,411​ 437,494​ 380,340​ 9.8% 15.0%Income taxes as a percentage of income before taxes​ 24.1% 21.2% 24.2%​​​​​​​​​​​​​​​​​​​Net income1​$ 1,509,048​$ 1,630,988​$ 1,191,624​ (7.5)% 36.9%Net income as a percentage of net sales​ 20.1% 22.8% 18.9%​​​​​​​​​​​​​​​​​​​Net income per common share:​ ​​ ​​ ​​​​​​Basic​$ 1.50​$ 1.56​$ 1.13​ (3.8)% 38.0%Diluted​$ 1.49​$ 1.54​$ 1.12​ (3.4)% 38.0%​​​​​​​​​​​​​​​Energy Drink case sales (in thousands) (in 192‑ounce case equivalents)​ 846,663​ 769,241​ 701,677​ 10.1% 9.6%​1Includes $39.9 million, $40.0 million and $40.0 million for the years ended December 31, 2024, 2023 and 2022, respectively, 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.Net SalesNet sales were $7.49 billion for the year ended December 31, 2024, an increase of approximately $352.7 million, or 4.9% higher than net sales of $7.14 billion for the year ended December 31, 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 $247.1 million for the year ended December 31, 2024. Net sales on a foreign currency adjusted basis increased 8.4% for the year ended December 31, 2024.Net sales were $2.77 billion and $2.53 billion for the years ended December 31, 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 $245.2 million for the year ended December 31, 2024. Net sales on a foreign currency adjusted basis in EMEA, Asia Pacific (including Oceania), Latin America and the Caribbean increased 19.2% for the year ended December 31, 2024. The following table sets forth key statistics for the years ended December 31, 2024, 2023 and 2022, respectively. ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ (In thousands, except per share amounts) ​ ​ ​ ​ ​ ​ Percentage ​ Percentage ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Change ​ Change ​ ​ 2024 2023 2022 24 vs. 23 23 vs. 22 ​ Net sales1 ​ $ 7,492,709 ​ $ 7,140,027 ​ $ 6,311,050 ​ 4.9 % 13.1 % Cost of sales ​ 3,443,831 ​ 3,345,821 ​ 3,136,483 ​ 2.9 % 6.7 % Gross profit*1 ​ 4,048,878 ​ 3,794,206 ​ 3,174,567 ​ 6.7 % 19.5 % Gross profit as a percentage of net sales ​ 54.0 % 53.1 % 50.3 % ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Operating expenses ​ 2,118,584 ​ 1,840,851 ​ 1,589,846 ​ 15.1 % 15.8 % Operating expenses as a percentage of net sales ​ 28.3 % 25.8 % 25.2 % ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Operating income1 ​ 1,930,294 ​ 1,953,355 ​ 1,584,721 ​ (1.2) % 23.3 % Operating income as a percentage of net sales ​ 25.8 % 27.4 % 25.1 % ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Interest and other income (expense), net ​ 59,165 ​ 115,127 ​ (12,757) ​ (48.6) % 1,002.5 % ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Income before provision for income taxes1 ​ 1,989,459 ​ 2,068,482 ​ 1,571,964 ​ (3.8) % 31.6 % ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Provision for income taxes ​ 480,411 ​ 437,494 ​ 380,340 ​ 9.8 % 15.0 % Income taxes as a percentage of income before taxes ​ 24.1 % 21.2 % 24.2 % ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Net income1 ​ $ 1,509,048 ​ $ 1,630,988 ​ $ 1,191,624 ​ (7.5) % 36.9 % Net income as a percentage of net sales ​ 20.1 % 22.8 % 18.9 % ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Net income per common share: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Basic ​ $ 1.50 ​ $ 1.56 ​ $ 1.13 ​ (3.8) % 38.0 % Diluted ​ $ 1.49 ​ $ 1.54 ​ $ 1.12 ​ (3.4) % 38.0 % ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Energy Drink case sales (in thousands) (in 192‑ounce case equivalents) ​ 846,663 ​ 769,241 ​ 701,677 ​ 10.1 % 9.6 % ​ 1Includes $39.9 million, $40.0 million and $40.0 million for the years ended December 31, 2024, 2023 and 2022, respectively, 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. Net Sales Net sales were $7.49 billion for the year ended December 31, 2024, an increase of approximately $352.7 million, or 4.9% higher than net sales of $7.14 billion for the year ended December 31, 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 $247.1 million for the year ended December 31, 2024. Net sales on a foreign currency adjusted basis increased 8.4% for the year ended December 31, 2024. Net sales were $2.77 billion and $2.53 billion for the years ended December 31, 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 $245.2 million for the year ended December 31, 2024. Net sales on a foreign currency adjusted basis in EMEA, Asia Pacific (including Oceania), Latin America and the Caribbean increased 19.2% for the year ended December 31, 2024. 47 47 Table of ContentsNet sales for the Monster Energy® Drinks segment were $6.86 billion for the year ended December 31, 2024, an increase of approximately $309.5 million, or 4.7% higher than net sales of $6.56 billion for the year ended December 31, 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 $210.0 million for the year ended December 31, 2024. Net sales for the Monster Energy® Drinks segment on a foreign currency adjusted basis increased 7.9% for the year ended December 31, 2024.Net sales for the Strategic Brands segment were $432.2 million for the year ended December 31, 2024, an increase of approximately $55.6 million, or 14.8% higher than net sales of $376.6 million for the year ended December 31, 2023. Net sales for the Strategic Brands segment increased primarily due to increased worldwide sales by volume of our Burn®, Predator®, NOS® and Fury® brand energy drinks as a result of increased consumer demand. Net changes in foreign currency exchange rates had an unfavorable impact on net sales of approximately $37.1 million for the Strategic Brands segment for the year ended December 31, 2024. Net sales for the Strategic Brands segment on a foreign currency adjusted basis increased 24.6% for the year ended December 31, 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 primarily as a result of bottler production schedules.Net sales for the Alcohol Brands segment were $172.3 million for the year ended December 31, 2024, a decrease of approximately $12.5 million, or 6.8% lower than net sales of $184.9 million for the year ended December 31, 2023. The decrease in net sales for the year ended December 31, 2024 was primarily due to decreased sales by volume of craft beers.Net sales for the Other segment were $23.6 million for the year ended December 31, 2024, an increase of approximately $0.1 million, or 0.3% higher than net sales of $23.5 million for the year ended December 31, 2023. Case sales for our energy drink products, in 192-ounce case equivalents, were 846.7 million cases for the year ended December 31, 2024, an increase of approximately 77.4 million cases or 10.1% higher than case sales of 769.2 million cases for the year ended December 31, 2023. The overall average net sales per case for our energy drink products (excluding net sales of Alcohol Brands and Other segments) decreased to $8.62 for the year ended December 31, 2024, which was 4.4% lower than the average net sales per case of $9.01 for the year ended December 31, 2023. The decrease in overall average net sales per case for our energy drink products for the year ended December 31, 2024 compared to the year ended December 31, 2023 was primarily due to higher promotional allowances as a percentage of net sales as well as geographical/product sales mix.Case sales for our craft beers, FMBs and hard seltzers in 192-ounce equivalents, were 12.5 million cases for the year ended December 31, 2024, a decrease of approximately 0.7 million cases or 5.0% lower than case sales of 13.1 million cases for the year ended December 31, 2023. Barrel sales for our craft beers, FMBs and hard seltzers in 31 U.S. gallon equivalents, were 0.60 million barrels for the year ended December 31, 2024, a decrease of approximately 0.03 million barrels or 5.0% lower than barrel sales of 0.64 million barrels for the year ended December 31, 2023.Gross ProfitGross profit was $4.05 billion for the year ended December 31, 2024, an increase of approximately $254.7 million, or 6.7% higher than the gross profit of $3.79 billion for the year ended December 31, 2023. The increase in gross profit was primarily the result of the increase in net sales.Gross profit as a percentage of net sales increased to 54.0% for the year ended December 31, 2024 from 53.1% for the year ended December 31, 2023. The increase for the year ended December 31, 2024 was primarily the result of the Pricing Actions, decreased freight-in costs and decreased aluminum can costs, partially offset by production inefficiencies.Operating Expenses Total operating expenses were $2.12 billion for the year ended December 31, 2024, an increase of approximately $277.7 million, or 15.1% higher than total operating expenses of $1.84 billion for the year ended December 31, 2023. 48 Table of Contents Table of Contents Table of Contents Net sales for the Monster Energy® Drinks segment were $6.86 billion for the year ended December 31, 2024, an increase of approximately $309.5 million, or 4.7% higher than net sales of $6.56 billion for the year ended December 31, 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 $210.0 million for the year ended December 31, 2024. Net sales for the Monster Energy® Drinks segment on a foreign currency adjusted basis increased 7.9% for the year ended December 31, 2024.Net sales for the Strategic Brands segment were $432.2 million for the year ended December 31, 2024, an increase of approximately $55.6 million, or 14.8% higher than net sales of $376.6 million for the year ended December 31, 2023. Net sales for the Strategic Brands segment increased primarily due to increased worldwide sales by volume of our Burn®, Predator®, NOS® and Fury® brand energy drinks as a result of increased consumer demand. Net changes in foreign currency exchange rates had an unfavorable impact on net sales of approximately $37.1 million for the Strategic Brands segment for the year ended December 31, 2024. Net sales for the Strategic Brands segment on a foreign currency adjusted basis increased 24.6% for the year ended December 31, 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 primarily as a result of bottler production schedules.Net sales for the Alcohol Brands segment were $172.3 million for the year ended December 31, 2024, a decrease of approximately $12.5 million, or 6.8% lower than net sales of $184.9 million for the year ended December 31, 2023. The decrease in net sales for the year ended December 31, 2024 was primarily due to decreased sales by volume of craft beers.Net sales for the Other segment were $23.6 million for the year ended December 31, 2024, an increase of approximately $0.1 million, or 0.3% higher than net sales of $23.5 million for the year ended December 31, 2023. Case sales for our energy drink products, in 192-ounce case equivalents, were 846.7 million cases for the year ended December 31, 2024, an increase of approximately 77.4 million cases or 10.1% higher than case sales of 769.2 million cases for the year ended December 31, 2023. The overall average net sales per case for our energy drink products (excluding net sales of Alcohol Brands and Other segments) decreased to $8.62 for the year ended December 31, 2024, which was 4.4% lower than the average net sales per case of $9.01 for the year ended December 31, 2023. The decrease in overall average net sales per case for our energy drink products for the year ended December 31, 2024 compared to the year ended December 31, 2023 was primarily due to higher promotional allowances as a percentage of net sales as well as geographical/product sales mix.Case sales for our craft beers, FMBs and hard seltzers in 192-ounce equivalents, were 12.5 million cases for the year ended December 31, 2024, a decrease of approximately 0.7 million cases or 5.0% lower than case sales of 13.1 million cases for the year ended December 31, 2023. Barrel sales for our craft beers, FMBs and hard seltzers in 31 U.S. gallon equivalents, were 0.60 million barrels for the year ended December 31, 2024, a decrease of approximately 0.03 million barrels or 5.0% lower than barrel sales of 0.64 million barrels for the year ended December 31, 2023.Gross ProfitGross profit was $4.05 billion for the year ended December 31, 2024, an increase of approximately $254.7 million, or 6.7% higher than the gross profit of $3.79 billion for the year ended December 31, 2023. The increase in gross profit was primarily the result of the increase in net sales.Gross profit as a percentage of net sales increased to 54.0% for the year ended December 31, 2024 from 53.1% for the year ended December 31, 2023. The increase for the year ended December 31, 2024 was primarily the result of the Pricing Actions, decreased freight-in costs and decreased aluminum can costs, partially offset by production inefficiencies.Operating Expenses Total operating expenses were $2.12 billion for the year ended December 31, 2024, an increase of approximately $277.7 million, or 15.1% higher than total operating expenses of $1.84 billion for the year ended December 31, 2023. Net sales for the Monster Energy® Drinks segment were $6.86 billion for the year ended December 31, 2024, an increase of approximately $309.5 million, or 4.7% higher than net sales of $6.56 billion for the year ended December 31, 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 $210.0 million for the year ended December 31, 2024. Net sales for the Monster Energy® Drinks segment on a foreign currency adjusted basis increased 7.9% for the year ended December 31, 2024.Net sales for the Strategic Brands segment were $432.2 million for the year ended December 31, 2024, an increase of approximately $55.6 million, or 14.8% higher than net sales of $376.6 million for the year ended December 31, 2023. Net sales for the Strategic Brands segment increased primarily due to increased worldwide sales by volume of our Burn®, Predator®, NOS® and Fury® brand energy drinks as a result of increased consumer demand. Net changes in foreign currency exchange rates had an unfavorable impact on net sales of approximately $37.1 million for the Strategic Brands segment for the year ended December 31, 2024. Net sales for the Strategic Brands segment on a foreign currency adjusted basis increased 24.6% for the year ended December 31, 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 primarily as a result of bottler production schedules.Net sales for the Alcohol Brands segment were $172.3 million for the year ended December 31, 2024, a decrease of approximately $12.5 million, or 6.8% lower than net sales of $184.9 million for the year ended December 31, 2023. The decrease in net sales for the year ended December 31, 2024 was primarily due to decreased sales by volume of craft beers.Net sales for the Other segment were $23.6 million for the year ended December 31, 2024, an increase of approximately $0.1 million, or 0.3% higher than net sales of $23.5 million for the year ended December 31, 2023. Case sales for our energy drink products, in 192-ounce case equivalents, were 846.7 million cases for the year ended December 31, 2024, an increase of approximately 77.4 million cases or 10.1% higher than case sales of 769.2 million cases for the year ended December 31, 2023. The overall average net sales per case for our energy drink products (excluding net sales of Alcohol Brands and Other segments) decreased to $8.62 for the year ended December 31, 2024, which was 4.4% lower than the average net sales per case of $9.01 for the year ended December 31, 2023. The decrease in overall average net sales per case for our energy drink products for the year ended December 31, 2024 compared to the year ended December 31, 2023 was primarily due to higher promotional allowances as a percentage of net sales as well as geographical/product sales mix.Case sales for our craft beers, FMBs and hard seltzers in 192-ounce equivalents, were 12.5 million cases for the year ended December 31, 2024, a decrease of approximately 0.7 million cases or 5.0% lower than case sales of 13.1 million cases for the year ended December 31, 2023. Barrel sales for our craft beers, FMBs and hard seltzers in 31 U.S. gallon equivalents, were 0.60 million barrels for the year ended December 31, 2024, a decrease of approximately 0.03 million barrels or 5.0% lower than barrel sales of 0.64 million barrels for the year ended December 31, 2023.Gross ProfitGross profit was $4.05 billion for the year ended December 31, 2024, an increase of approximately $254.7 million, or 6.7% higher than the gross profit of $3.79 billion for the year ended December 31, 2023. The increase in gross profit was primarily the result of the increase in net sales.Gross profit as a percentage of net sales increased to 54.0% for the year ended December 31, 2024 from 53.1% for the year ended December 31, 2023. The increase for the year ended December 31, 2024 was primarily the result of the Pricing Actions, decreased freight-in costs and decreased aluminum can costs, partially offset by production inefficiencies.Operating Expenses Total operating expenses were $2.12 billion for the year ended December 31, 2024, an increase of approximately $277.7 million, or 15.1% higher than total operating expenses of $1.84 billion for the year ended December 31, 2023. Net sales for the Monster Energy® Drinks segment were $6.86 billion for the year ended December 31, 2024, an increase of approximately $309.5 million, or 4.7% higher than net sales of $6.56 billion for the year ended December 31, 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 $210.0 million for the year ended December 31, 2024. Net sales for the Monster Energy® Drinks segment on a foreign currency adjusted basis increased 7.9% for the year ended December 31, 2024. Net sales for the Strategic Brands segment were $432.2 million for the year ended December 31, 2024, an increase of approximately $55.6 million, or 14.8% higher than net sales of $376.6 million for the year ended December 31, 2023. Net sales for the Strategic Brands segment increased primarily due to increased worldwide sales by volume of our Burn®, Predator®, NOS® and Fury® brand energy drinks as a result of increased consumer demand. Net changes in foreign currency exchange rates had an unfavorable impact on net sales of approximately $37.1 million for the Strategic Brands segment for the year ended December 31, 2024. Net sales for the Strategic Brands segment on a foreign currency adjusted basis increased 24.6% for the year ended December 31, 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 primarily as a result of bottler production schedules. Net sales for the Alcohol Brands segment were $172.3 million for the year ended December 31, 2024, a decrease of approximately $12.5 million, or 6.8% lower than net sales of $184.9 million for the year ended December 31, 2023. The decrease in net sales for the year ended December 31, 2024 was primarily due to decreased sales by volume of craft beers. Net sales for the Other segment were $23.6 million for the year ended December 31, 2024, an increase of approximately $0.1 million, or 0.3% higher than net sales of $23.5 million for the year ended December 31, 2023. Case sales for our energy drink products, in 192-ounce case equivalents, were 846.7 million cases for the year ended December 31, 2024, an increase of approximately 77.4 million cases or 10.1% higher than case sales of 769.2 million cases for the year ended December 31, 2023. The overall average net sales per case for our energy drink products (excluding net sales of Alcohol Brands and Other segments) decreased to $8.62 for the year ended December 31, 2024, which was 4.4% lower than the average net sales per case of $9.01 for the year ended December 31, 2023. The decrease in overall average net sales per case for our energy drink products for the year ended December 31, 2024 compared to the year ended December 31, 2023 was primarily due to higher promotional allowances as a percentage of net sales as well as geographical/product sales mix. Case sales for our craft beers, FMBs and hard seltzers in 192-ounce equivalents, were 12.5 million cases for the year ended December 31, 2024, a decrease of approximately 0.7 million cases or 5.0% lower than case sales of 13.1 million cases for the year ended December 31, 2023. Barrel sales for our craft beers, FMBs and hard seltzers in 31 U.S. gallon equivalents, were 0.60 million barrels for the year ended December 31, 2024, a decrease of approximately 0.03 million barrels or 5.0% lower than barrel sales of 0.64 million barrels for the year ended December 31, 2023. --- ## Modified: Intellectual Property, Information Technology and Data Privacy and Security Risks **Key changes:** - Reworded sentence: "Our use of information technology exposes us to cybersecurity attacks and other interruptions that could disrupt our business operations and adversely impact our reputation and results of operations." - Reworded sentence: "Although we maintain cybersecurity insurance coverage that may, subject to the policy's terms and conditions, cover certain aspects of a breach or disruption, such insurance coverage may be insufficient to cover all cybersecurity-related losses.Cybersecurity attacks, business interruptions and compliance issues experienced by third parties could materially and adversely affect our financial condition, results of operation and cash flows." - Reworded sentence: "Although we maintain cybersecurity insurance coverage that may, subject to the policy's terms and conditions, cover certain aspects of a breach or disruption, such insurance coverage may be insufficient to cover all cybersecurity-related losses.Cybersecurity attacks, business interruptions and compliance issues experienced by third parties could materially and adversely affect our financial condition, results of operation and cash flows." - Reworded sentence: "Although we maintain cybersecurity insurance coverage that may, subject to the policy's terms and conditions, cover certain aspects of a breach or disruption, such insurance coverage may be insufficient to cover all cybersecurity-related losses.Cybersecurity attacks, business interruptions and compliance issues experienced by third parties could materially and adversely affect our financial condition, results of operation and cash flows." - Reworded sentence: "These third-party service providers and partners, with whom we may share data, have, and could in the future, experience cybersecurity attacks." **Prior (2024):** Our intellectual property rights are critical to our success, and the loss of such rights could materially adversely affect our business. We own numerous trademarks that are very important to our business. We also own the copyright in, and to, a portion of the content on the packaging of our products. We regard our trademarks, copyrights and similar intellectual property as critical to our success and attempt to protect such intellectual property through registration and enforcement actions. However, there can be no assurance that other parties will not infringe or misappropriate our trademarks, copyrights and similar proprietary rights. We also have been, and may in the future be, unable to use our trademarks, trade names or designs and/or trade dress in certain countries, which may impact sales of the affected brands and require increased expenditures, which could have an adverse effect on our business, financial condition or results of operations. Our use of information technology and third party service providers exposes us to cybersecurity breaches and other interruptions that could disrupt our business operations and adversely impact our reputation and results of operations. Information technology, including the Internet and third-party hosted services, enables us to operate efficiently, manage our procurement, supply chain and employee processes, interface with customers, maintain financial accuracy and efficiency and accurately produce our financial statements. If we do not appropriately allocate and effectively manage the resources necessary to build and sustain the proper technology infrastructure, we could be subject to transaction errors, processing inefficiencies, the loss of customers, business disruptions, and/or the loss of and/or damage to intellectual property through security breaches, including internal and external cybersecurity threats. Cybersecurity attacks may be difficult to detect for periods of time, and include, but are not limited to, malicious software (malware, ransomware and viruses), phishing and social engineering, attempts to gain unauthorized access to networks, computer systems and data, malicious or negligent actions of employees (including misuse of information they are entitled to access), cyber extortion, electronic or wire fraud, and other forms of electronic security breaches. These incidents may be caused by failures during routine operations, such as system upgrades, or by user errors, as well as network or hardware failures, malicious or 36 36 Table of Contentsdisruptive software, unintentional or malicious actions of employees or contractors, cyberattacks by hackers, criminal groups or nation-state organizations (which may include social engineering, business email compromise, cyber extortion, denial of service, or attempts to exploit vulnerabilities, such as phishing), geopolitical events, natural disasters, failures or impairments of telecommunications networks, or other catastrophic events. Such attacks could lead to disruptions in or loss of access to our data or business systems; an inability to process customer orders and/or lost customer orders; unauthorized release of confidential, proprietary or otherwise protected information belonging to us or our employees, customers, consumers, partners, or suppliers; lost revenues or other costs due to office, plant, production, warehouse or other facility disruption or shutdown; additional expenses, including the cost of remediating incidents or improving security measures, increased insurance costs, and/or ransomware payments; and corruption of data. Any such consequences could materially and adversely affect our financial condition, results of operations and cash flows. We also may suffer reputational damage because of lost or misappropriated confidential or proprietary information belonging to us, or employees, customers, suppliers or other third party service providers and may become exposed to legal action and increased regulatory oversight, including governmental inquiries, investigations, enforcement actions and regulatory fines. Although we maintain insurance coverage that may, subject to the policy's terms and conditions, cover certain aspects of a breach or disruption, such insurance coverage may be insufficient to cover all losses. In addition, the scope and severity of cyber threats, in particular the use of ransomware attacks, are increasing. Due to such constant evolving nature and methods of security threats, we cannot predict the form and nature of any future incident, and the cost and operational expense of implementing, maintaining and enhancing protective measures to guard against increasingly complex and sophisticated cyber threats could increase significantly.Moreover, if our data management systems, including our SAP enterprise resource planning system, do not effectively collect, store, process and report relevant data for the operation of our business (whether due to equipment malfunction or constraints, software deficiencies, cybersecurity attack and/or human error), our ability to effectively plan, forecast and execute our business plan and comply with applicable laws and regulations will be impaired, perhaps materially. Any such impairment could materially and adversely affect our financial condition, results of operations, cash flows and the timeliness with which we report our internal and external operating results.We rely on relationships with third parties, including suppliers, distributors, bottlers, contract packers, contractors, cloud data storage and other information technology service providers and other external business partners, for certain functions or for services in support of our operations. These third-party service providers and partners, with whom we may share data, are subject to similar risks as we are relating to cybersecurity, privacy violations, business interruption, and systems, as well as employee failures. While we have procedures in place for selecting and managing our relationships with third-party service providers and other business partners, we do not have control over their business operations or governance and compliance systems, practices and procedures, and our management of multiple third party service providers increases our operational complexity. If we fail to adequately monitor our third party service providers' and partners' performance, including for compliance with regulatory and legal requirements, we may have to incur additional costs to correct errors, our reputation could be harmed or we could be subject to litigation, claims, legal or regulatory proceedings, inquiries or investigations. These risks may also be present if our third party service providers and partners use separate information systems that are not integrated with our systems and suffer a cybersecurity incident. These risks are also present in acquired businesses, joint ventures or companies that we invest in or partner with that use separate information systems or have not yet been fully integrated into our information systems. Third parties may experience cybersecurity incidents that may involve data we share with them or rely on them to provide to us, and the need to coordinate with such third-parties, including with respect to timely notification and access to personnel and information concerning an incident, may complicate our efforts to resolve any issues that arise. As a result, we are subject to the risk that the activities associated with our third party service providers and partners will adversely affect our business, even if the cyber incident does not directly impact our systems or information.37 Table of Contents Table of Contents Table of Contents disruptive software, unintentional or malicious actions of employees or contractors, cyberattacks by hackers, criminal groups or nation-state organizations (which may include social engineering, business email compromise, cyber extortion, denial of service, or attempts to exploit vulnerabilities, such as phishing), geopolitical events, natural disasters, failures or impairments of telecommunications networks, or other catastrophic events. Such attacks could lead to disruptions in or loss of access to our data or business systems; an inability to process customer orders and/or lost customer orders; unauthorized release of confidential, proprietary or otherwise protected information belonging to us or our employees, customers, consumers, partners, or suppliers; lost revenues or other costs due to office, plant, production, warehouse or other facility disruption or shutdown; additional expenses, including the cost of remediating incidents or improving security measures, increased insurance costs, and/or ransomware payments; and corruption of data. Any such consequences could materially and adversely affect our financial condition, results of operations and cash flows. We also may suffer reputational damage because of lost or misappropriated confidential or proprietary information belonging to us, or employees, customers, suppliers or other third party service providers and may become exposed to legal action and increased regulatory oversight, including governmental inquiries, investigations, enforcement actions and regulatory fines. Although we maintain insurance coverage that may, subject to the policy's terms and conditions, cover certain aspects of a breach or disruption, such insurance coverage may be insufficient to cover all losses. In addition, the scope and severity of cyber threats, in particular the use of ransomware attacks, are increasing. Due to such constant evolving nature and methods of security threats, we cannot predict the form and nature of any future incident, and the cost and operational expense of implementing, maintaining and enhancing protective measures to guard against increasingly complex and sophisticated cyber threats could increase significantly.Moreover, if our data management systems, including our SAP enterprise resource planning system, do not effectively collect, store, process and report relevant data for the operation of our business (whether due to equipment malfunction or constraints, software deficiencies, cybersecurity attack and/or human error), our ability to effectively plan, forecast and execute our business plan and comply with applicable laws and regulations will be impaired, perhaps materially. Any such impairment could materially and adversely affect our financial condition, results of operations, cash flows and the timeliness with which we report our internal and external operating results.We rely on relationships with third parties, including suppliers, distributors, bottlers, contract packers, contractors, cloud data storage and other information technology service providers and other external business partners, for certain functions or for services in support of our operations. These third-party service providers and partners, with whom we may share data, are subject to similar risks as we are relating to cybersecurity, privacy violations, business interruption, and systems, as well as employee failures. While we have procedures in place for selecting and managing our relationships with third-party service providers and other business partners, we do not have control over their business operations or governance and compliance systems, practices and procedures, and our management of multiple third party service providers increases our operational complexity. If we fail to adequately monitor our third party service providers' and partners' performance, including for compliance with regulatory and legal requirements, we may have to incur additional costs to correct errors, our reputation could be harmed or we could be subject to litigation, claims, legal or regulatory proceedings, inquiries or investigations. These risks may also be present if our third party service providers and partners use separate information systems that are not integrated with our systems and suffer a cybersecurity incident. These risks are also present in acquired businesses, joint ventures or companies that we invest in or partner with that use separate information systems or have not yet been fully integrated into our information systems. Third parties may experience cybersecurity incidents that may involve data we share with them or rely on them to provide to us, and the need to coordinate with such third-parties, including with respect to timely notification and access to personnel and information concerning an incident, may complicate our efforts to resolve any issues that arise. As a result, we are subject to the risk that the activities associated with our third party service providers and partners will adversely affect our business, even if the cyber incident does not directly impact our systems or information. disruptive software, unintentional or malicious actions of employees or contractors, cyberattacks by hackers, criminal groups or nation-state organizations (which may include social engineering, business email compromise, cyber extortion, denial of service, or attempts to exploit vulnerabilities, such as phishing), geopolitical events, natural disasters, failures or impairments of telecommunications networks, or other catastrophic events. Such attacks could lead to disruptions in or loss of access to our data or business systems; an inability to process customer orders and/or lost customer orders; unauthorized release of confidential, proprietary or otherwise protected information belonging to us or our employees, customers, consumers, partners, or suppliers; lost revenues or other costs due to office, plant, production, warehouse or other facility disruption or shutdown; additional expenses, including the cost of remediating incidents or improving security measures, increased insurance costs, and/or ransomware payments; and corruption of data. Any such consequences could materially and adversely affect our financial condition, results of operations and cash flows. We also may suffer reputational damage because of lost or misappropriated confidential or proprietary information belonging to us, or employees, customers, suppliers or other third party service providers and may become exposed to legal action and increased regulatory oversight, including governmental inquiries, investigations, enforcement actions and regulatory fines. Although we maintain insurance coverage that may, subject to the policy's terms and conditions, cover certain aspects of a breach or disruption, such insurance coverage may be insufficient to cover all losses. In addition, the scope and severity of cyber threats, in particular the use of ransomware attacks, are increasing. Due to such constant evolving nature and methods of security threats, we cannot predict the form and nature of any future incident, and the cost and operational expense of implementing, maintaining and enhancing protective measures to guard against increasingly complex and sophisticated cyber threats could increase significantly. Moreover, if our data management systems, including our SAP enterprise resource planning system, do not effectively collect, store, process and report relevant data for the operation of our business (whether due to equipment malfunction or constraints, software deficiencies, cybersecurity attack and/or human error), our ability to effectively plan, forecast and execute our business plan and comply with applicable laws and regulations will be impaired, perhaps materially. Any such impairment could materially and adversely affect our financial condition, results of operations, cash flows and the timeliness with which we report our internal and external operating results. We rely on relationships with third parties, including suppliers, distributors, bottlers, contract packers, contractors, cloud data storage and other information technology service providers and other external business partners, for certain functions or for services in support of our operations. These third-party service providers and partners, with whom we may share data, are subject to similar risks as we are relating to cybersecurity, privacy violations, business interruption, and systems, as well as employee failures. While we have procedures in place for selecting and managing our relationships with third-party service providers and other business partners, we do not have control over their business operations or governance and compliance systems, practices and procedures, and our management of multiple third party service providers increases our operational complexity. If we fail to adequately monitor our third party service providers' and partners' performance, including for compliance with regulatory and legal requirements, we may have to incur additional costs to correct errors, our reputation could be harmed or we could be subject to litigation, claims, legal or regulatory proceedings, inquiries or investigations. These risks may also be present if our third party service providers and partners use separate information systems that are not integrated with our systems and suffer a cybersecurity incident. These risks are also present in acquired businesses, joint ventures or companies that we invest in or partner with that use separate information systems or have not yet been fully integrated into our information systems. Third parties may experience cybersecurity incidents that may involve data we share with them or rely on them to provide to us, and the need to coordinate with such third-parties, including with respect to timely notification and access to personnel and information concerning an incident, may complicate our efforts to resolve any issues that arise. As a result, we are subject to the risk that the activities associated with our third party service providers and partners will adversely affect our business, even if the cyber incident does not directly impact our systems or information. 37 37 Table of ContentsIf we fail to comply with data privacy and personal data protection laws, we could be subject to adverse publicity, government enforcement actions and/or private litigation, which may negatively impact our business and operating results.We receive, process, transmit and store information relating to certain identified or identifiable individuals ("personal data"), including current and former employees, in the ordinary course of business. As a result, we are subject to various U.S. federal and state and foreign laws and regulations relating to personal data. These laws are subject to change, and new personal data legislation may be enacted in other jurisdictions at any time. In the European Union, the General Data Protection Regulation ("GDPR") includes operational requirements for companies receiving or processing personal data of residents of the European Union different from those that were previously in place and also includes significant penalties for noncompliance. Additionally, privacy laws and regulations adopted or being considered by various states, including the California Consumer Privacy Act of 2018 ("CCPA") and the California Privacy Rights Act, provides new private rights of action and statutory damages for certain data breaches and impose operational requirements on companies that process personal data of state residents, including making disclosures to consumers about data collection, processing and sharing practices and allowing consumers to opt out of certain data sharing with third parties.Changes introduced by the GDPR and state privacy laws, as well as other changes to existing personal data protection laws and the introduction of such laws in other jurisdictions, subject the Company to, among other things, additional costs and expenses and may require costly changes to our business practices and security systems, policies, procedures and practices. There can be no assurances that our security controls over personal data, training of personnel on data privacy and data security, vendor management processes, and the policies, procedures and practices we implement will prevent the improper processing or breaches of personal data. Data breaches or improper processing, or breaches of personal data in violation of the GDPR or of other personal data protection or privacy laws and regulations, could harm our reputation, cause loss of consumer confidence, subject us to government enforcement actions (including fines), or result in private litigation against us, which may result in potential loss of revenue, increased costs, liability for monetary damages or fines and/or criminal prosecution, thereby negatively impacting our business and operating results.Financial RisksFluctuations in our effective tax rate could adversely affect our financial condition and results of operations.We are subject to income and other taxes in both the U.S. and certain foreign jurisdictions. Therefore, we are subject to audits for multiple tax years in various jurisdictions at once. We are in various stages of examination with certain states and certain foreign jurisdictions. Our 2020 through 2022 U.S. federal income tax returns are subject to examination by the IRS. Our state income tax returns are subject to examination for the 2019 through 2022 tax years. The United Kingdom and Ireland income tax returns are subject to examination for the 2019 through 2022 tax years.At any given time, events may occur which change our expectation about how any such tax audits will be resolved, and thus, there could be significant variability in our quarterly and/or annual tax rates, because these events may change our plans for uncertain tax positions.Changes in U.S. tax laws as a result of any legislation proposed by a new 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, could adversely affect our provision for income taxes, resulting in an adverse impact on our financial condition or results of operations. In addition, changes in the manner in which U.S. multinational corporations are taxed on foreign earnings, including changes in how existing tax laws are interpreted or enforced, could adversely affect our financial condition or results of operations. For example, the Organization for Economic Cooperation and Development ("OECD") has recommended changes to numerous long-standing international tax principles through its base erosion and profit shifting ("BEPS") project. These changes, to the extent adopted, may increase tax uncertainty, result in higher compliance costs and adversely affect our provision for income taxes, results of operations and/or cash flow. In connection with the OECD's 38 Table of Contents Table of Contents Table of Contents If we fail to comply with data privacy and personal data protection laws, we could be subject to adverse publicity, government enforcement actions and/or private litigation, which may negatively impact our business and operating results.We receive, process, transmit and store information relating to certain identified or identifiable individuals ("personal data"), including current and former employees, in the ordinary course of business. As a result, we are subject to various U.S. federal and state and foreign laws and regulations relating to personal data. These laws are subject to change, and new personal data legislation may be enacted in other jurisdictions at any time. In the European Union, the General Data Protection Regulation ("GDPR") includes operational requirements for companies receiving or processing personal data of residents of the European Union different from those that were previously in place and also includes significant penalties for noncompliance. Additionally, privacy laws and regulations adopted or being considered by various states, including the California Consumer Privacy Act of 2018 ("CCPA") and the California Privacy Rights Act, provides new private rights of action and statutory damages for certain data breaches and impose operational requirements on companies that process personal data of state residents, including making disclosures to consumers about data collection, processing and sharing practices and allowing consumers to opt out of certain data sharing with third parties.Changes introduced by the GDPR and state privacy laws, as well as other changes to existing personal data protection laws and the introduction of such laws in other jurisdictions, subject the Company to, among other things, additional costs and expenses and may require costly changes to our business practices and security systems, policies, procedures and practices. There can be no assurances that our security controls over personal data, training of personnel on data privacy and data security, vendor management processes, and the policies, procedures and practices we implement will prevent the improper processing or breaches of personal data. Data breaches or improper processing, or breaches of personal data in violation of the GDPR or of other personal data protection or privacy laws and regulations, could harm our reputation, cause loss of consumer confidence, subject us to government enforcement actions (including fines), or result in private litigation against us, which may result in potential loss of revenue, increased costs, liability for monetary damages or fines and/or criminal prosecution, thereby negatively impacting our business and operating results.Financial RisksFluctuations in our effective tax rate could adversely affect our financial condition and results of operations.We are subject to income and other taxes in both the U.S. and certain foreign jurisdictions. Therefore, we are subject to audits for multiple tax years in various jurisdictions at once. We are in various stages of examination with certain states and certain foreign jurisdictions. Our 2020 through 2022 U.S. federal income tax returns are subject to examination by the IRS. Our state income tax returns are subject to examination for the 2019 through 2022 tax years. The United Kingdom and Ireland income tax returns are subject to examination for the 2019 through 2022 tax years.At any given time, events may occur which change our expectation about how any such tax audits will be resolved, and thus, there could be significant variability in our quarterly and/or annual tax rates, because these events may change our plans for uncertain tax positions.Changes in U.S. tax laws as a result of any legislation proposed by a new 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, could adversely affect our provision for income taxes, resulting in an adverse impact on our financial condition or results of operations. In addition, changes in the manner in which U.S. multinational corporations are taxed on foreign earnings, including changes in how existing tax laws are interpreted or enforced, could adversely affect our financial condition or results of operations. For example, the Organization for Economic Cooperation and Development ("OECD") has recommended changes to numerous long-standing international tax principles through its base erosion and profit shifting ("BEPS") project. These changes, to the extent adopted, may increase tax uncertainty, result in higher compliance costs and adversely affect our provision for income taxes, results of operations and/or cash flow. In connection with the OECD's If we fail to comply with data privacy and personal data protection laws, we could be subject to adverse publicity, government enforcement actions and/or private litigation, which may negatively impact our business and operating results. We receive, process, transmit and store information relating to certain identified or identifiable individuals ("personal data"), including current and former employees, in the ordinary course of business. As a result, we are subject to various U.S. federal and state and foreign laws and regulations relating to personal data. These laws are subject to change, and new personal data legislation may be enacted in other jurisdictions at any time. In the European Union, the General Data Protection Regulation ("GDPR") includes operational requirements for companies receiving or processing personal data of residents of the European Union different from those that were previously in place and also includes significant penalties for noncompliance. Additionally, privacy laws and regulations adopted or being considered by various states, including the California Consumer Privacy Act of 2018 ("CCPA") and the California Privacy Rights Act, provides new private rights of action and statutory damages for certain data breaches and impose operational requirements on companies that process personal data of state residents, including making disclosures to consumers about data collection, processing and sharing practices and allowing consumers to opt out of certain data sharing with third parties. Changes introduced by the GDPR and state privacy laws, as well as other changes to existing personal data protection laws and the introduction of such laws in other jurisdictions, subject the Company to, among other things, additional costs and expenses and may require costly changes to our business practices and security systems, policies, procedures and practices. There can be no assurances that our security controls over personal data, training of personnel on data privacy and data security, vendor management processes, and the policies, procedures and practices we implement will prevent the improper processing or breaches of personal data. Data breaches or improper processing, or breaches of personal data in violation of the GDPR or of other personal data protection or privacy laws and regulations, could harm our reputation, cause loss of consumer confidence, subject us to government enforcement actions (including fines), or result in private litigation against us, which may result in potential loss of revenue, increased costs, liability for monetary damages or fines and/or criminal prosecution, thereby negatively impacting our business and operating results. **Current (2025):** Our intellectual property rights are critical to our success, and the loss of such rights could materially adversely affect our business. We own numerous trademarks that are very important to our business. We also own the copyright in, and to, a portion of the content on the packaging of our products. We regard our trademarks, copyrights and similar intellectual property as critical to our success and attempt to protect such intellectual property through registration and enforcement actions. However, there can be no assurance that other parties will not infringe or misappropriate our trademarks, copyrights and similar proprietary rights. We also have been, and may in the future be, unable to use our trademarks, trade names or designs and/or trade dress in certain countries, which may impact sales of the affected brands and require increased expenditures, which could have an adverse effect on our business, financial condition or results of operations. Our use of information technology exposes us to cybersecurity attacks and other interruptions that could disrupt our business operations and adversely impact our reputation and results of operations. We have been, and may continue to be, the subject of cybersecurity attacks. We may be subject to further attacks in the future whether we appropriately allocate and effectively manage the resources necessary to build and sustain the proper technology infrastructure. Cybersecurity attacks may be difficult to detect for periods of time, and include, but are not limited to, malicious software (malware, ransomware and viruses), phishing and social engineering, attempts to gain unauthorized access to networks, computer systems and data, malicious or negligent actions of employees (including misuse of information they are entitled to access), cyber extortion, electronic or wire fraud, and business email compromise, among others. These cybersecurity attacks may be caused by failures during routine operations, such as system upgrades, user errors, network or hardware failures, malicious or disruptive software, unintentional or malicious actions of employees or contractors, as well as cybersecurity attacks by hackers, criminal groups or nation-state organizations. Due to such constant evolving nature and methods of security threats, we cannot predict the form and nature of any future cybersecurity attack, and the cost and operational expense of implementing, maintaining and enhancing protective measures to guard against increasingly complex and sophisticated cyber threats could increase significantly. 33 33 Table of ContentsCybersecurity attacks could lead to disruptions in or loss of access to our data or business systems; an inability to process customer orders or lost customer orders; unauthorized release of confidential, proprietary or otherwise protected information belonging to us or our employees, customers, consumers, partners, or suppliers; lost revenues or other costs due to office, plant, production, warehouse or other facility disruption or shutdown; additional expenses, including the cost of remediating incidents or improving security measures, increased insurance costs, or ransomware payments; and corruption of data. Moreover, if our data management systems do not effectively collect, store, process and report relevant data for the operation of our business (such as due to a cybersecurity attack), our ability to effectively plan, forecast and execute our business plan and comply with applicable laws and regulations will be impaired, perhaps materially. We also may suffer reputational damage because of lost or misappropriated confidential or proprietary information belonging to us, or employees, customers, suppliers or other third party service providers, which could result in legal action and increased regulatory oversight, including governmental inquiries, investigations, enforcement actions and regulatory fines. Any such consequences could materially and adversely affect our financial condition, results of operations and cash flows. Although we maintain cybersecurity insurance coverage that may, subject to the policy's terms and conditions, cover certain aspects of a breach or disruption, such insurance coverage may be insufficient to cover all cybersecurity-related losses.Cybersecurity attacks, business interruptions and compliance issues experienced by third parties could materially and adversely affect our financial condition, results of operation and cash flows. We rely on relationships with third parties, including suppliers, distributors, bottlers, contract packers, contractors, cloud data storage and other information technology service providers and other external business partners, for certain functions or for services in support of our operations. These third-party service providers and partners, with whom we may share data, have, and could in the future, experience cybersecurity attacks. Third parties have been, and could in the future, experience challenges complying with laws and regulation, such as data protection requirements, and interruptions to business systems, disruption to operations, and employee failures. While we have procedures in place for selecting and managing our relationships with third-party service providers and other business partners, we do not have control over their business operations or governance and compliance systems, practices and procedures. Furthermore, our management of multiple third party service providers increases our operational complexity. Third parties have and could in the future experience cybersecurity attacks that may involve data we share with them or rely on them to provide to us with respect to timely notification and access to personnel and information concerning an incident, which may complicate our efforts to resolve any issues that arise. As a result, we are subject to the risk that the activities associated with our third party service providers and partners will adversely affect our business, even if the cyber security attack does not directly impact our systems or information. Additionally, these risks are also present in acquired businesses, joint ventures or companies that we invest in or with whom we partner. Such businesses use separate information systems or have not yet been fully integrated into our information systems.If we fail to comply with data privacy and personal data protection laws, we could be subject to adverse publicity, government enforcement actions and/or private litigation, which may negatively impact our business and operating results.We receive, process, transmit and store information relating to certain identified or identifiable individuals ("personal data"), including customers and current and former employees, in the ordinary course of business. As a result, we are subject to various U.S. and international laws and regulations relating to personal data. These laws are subject to change, and new personal data legislation may be enacted in other jurisdictions at any time. In the European Union, the General Data Protection Regulation ("GDPR") includes operational requirements for companies within scope who receive or otherwise process personal data of residents of data subjects (which may not necessarily be limited to those who are residents of the European Union) and also includes significant penalties for noncompliance. Additionally, privacy laws and regulations have been adopted or are being considered by various U.S. states. These data protection laws and regulations impose operational requirements, including disclosures to consumers about personal data practices, opt-out and consent choices and required contractual terms with certain third parties.These laws and regulations, as well as changes and new laws and regulations that apply to personal data, subject the Company to, among other things, additional costs and may require changes to our business practices, security systems, policies, and procedures. Inquiries from regulators and/or private litigation regarding our use of personal data could harm our reputation, cause loss of consumer confidence, and subject us to government enforcement actions (including fines and injunctions), which may result in potential loss of revenue, increased costs, liability for monetary damages or fines and/or criminal prosecution, thereby negatively impacting our business and operating results.34 Table of Contents Table of Contents Table of Contents Cybersecurity attacks could lead to disruptions in or loss of access to our data or business systems; an inability to process customer orders or lost customer orders; unauthorized release of confidential, proprietary or otherwise protected information belonging to us or our employees, customers, consumers, partners, or suppliers; lost revenues or other costs due to office, plant, production, warehouse or other facility disruption or shutdown; additional expenses, including the cost of remediating incidents or improving security measures, increased insurance costs, or ransomware payments; and corruption of data. Moreover, if our data management systems do not effectively collect, store, process and report relevant data for the operation of our business (such as due to a cybersecurity attack), our ability to effectively plan, forecast and execute our business plan and comply with applicable laws and regulations will be impaired, perhaps materially. We also may suffer reputational damage because of lost or misappropriated confidential or proprietary information belonging to us, or employees, customers, suppliers or other third party service providers, which could result in legal action and increased regulatory oversight, including governmental inquiries, investigations, enforcement actions and regulatory fines. Any such consequences could materially and adversely affect our financial condition, results of operations and cash flows. Although we maintain cybersecurity insurance coverage that may, subject to the policy's terms and conditions, cover certain aspects of a breach or disruption, such insurance coverage may be insufficient to cover all cybersecurity-related losses.Cybersecurity attacks, business interruptions and compliance issues experienced by third parties could materially and adversely affect our financial condition, results of operation and cash flows. We rely on relationships with third parties, including suppliers, distributors, bottlers, contract packers, contractors, cloud data storage and other information technology service providers and other external business partners, for certain functions or for services in support of our operations. These third-party service providers and partners, with whom we may share data, have, and could in the future, experience cybersecurity attacks. Third parties have been, and could in the future, experience challenges complying with laws and regulation, such as data protection requirements, and interruptions to business systems, disruption to operations, and employee failures. While we have procedures in place for selecting and managing our relationships with third-party service providers and other business partners, we do not have control over their business operations or governance and compliance systems, practices and procedures. Furthermore, our management of multiple third party service providers increases our operational complexity. Third parties have and could in the future experience cybersecurity attacks that may involve data we share with them or rely on them to provide to us with respect to timely notification and access to personnel and information concerning an incident, which may complicate our efforts to resolve any issues that arise. As a result, we are subject to the risk that the activities associated with our third party service providers and partners will adversely affect our business, even if the cyber security attack does not directly impact our systems or information. Additionally, these risks are also present in acquired businesses, joint ventures or companies that we invest in or with whom we partner. Such businesses use separate information systems or have not yet been fully integrated into our information systems.If we fail to comply with data privacy and personal data protection laws, we could be subject to adverse publicity, government enforcement actions and/or private litigation, which may negatively impact our business and operating results.We receive, process, transmit and store information relating to certain identified or identifiable individuals ("personal data"), including customers and current and former employees, in the ordinary course of business. As a result, we are subject to various U.S. and international laws and regulations relating to personal data. These laws are subject to change, and new personal data legislation may be enacted in other jurisdictions at any time. In the European Union, the General Data Protection Regulation ("GDPR") includes operational requirements for companies within scope who receive or otherwise process personal data of residents of data subjects (which may not necessarily be limited to those who are residents of the European Union) and also includes significant penalties for noncompliance. Additionally, privacy laws and regulations have been adopted or are being considered by various U.S. states. These data protection laws and regulations impose operational requirements, including disclosures to consumers about personal data practices, opt-out and consent choices and required contractual terms with certain third parties.These laws and regulations, as well as changes and new laws and regulations that apply to personal data, subject the Company to, among other things, additional costs and may require changes to our business practices, security systems, policies, and procedures. Inquiries from regulators and/or private litigation regarding our use of personal data could harm our reputation, cause loss of consumer confidence, and subject us to government enforcement actions (including fines and injunctions), which may result in potential loss of revenue, increased costs, liability for monetary damages or fines and/or criminal prosecution, thereby negatively impacting our business and operating results. Cybersecurity attacks could lead to disruptions in or loss of access to our data or business systems; an inability to process customer orders or lost customer orders; unauthorized release of confidential, proprietary or otherwise protected information belonging to us or our employees, customers, consumers, partners, or suppliers; lost revenues or other costs due to office, plant, production, warehouse or other facility disruption or shutdown; additional expenses, including the cost of remediating incidents or improving security measures, increased insurance costs, or ransomware payments; and corruption of data. Moreover, if our data management systems do not effectively collect, store, process and report relevant data for the operation of our business (such as due to a cybersecurity attack), our ability to effectively plan, forecast and execute our business plan and comply with applicable laws and regulations will be impaired, perhaps materially. We also may suffer reputational damage because of lost or misappropriated confidential or proprietary information belonging to us, or employees, customers, suppliers or other third party service providers, which could result in legal action and increased regulatory oversight, including governmental inquiries, investigations, enforcement actions and regulatory fines. Any such consequences could materially and adversely affect our financial condition, results of operations and cash flows. Although we maintain cybersecurity insurance coverage that may, subject to the policy's terms and conditions, cover certain aspects of a breach or disruption, such insurance coverage may be insufficient to cover all cybersecurity-related losses.Cybersecurity attacks, business interruptions and compliance issues experienced by third parties could materially and adversely affect our financial condition, results of operation and cash flows. We rely on relationships with third parties, including suppliers, distributors, bottlers, contract packers, contractors, cloud data storage and other information technology service providers and other external business partners, for certain functions or for services in support of our operations. These third-party service providers and partners, with whom we may share data, have, and could in the future, experience cybersecurity attacks. Third parties have been, and could in the future, experience challenges complying with laws and regulation, such as data protection requirements, and interruptions to business systems, disruption to operations, and employee failures. While we have procedures in place for selecting and managing our relationships with third-party service providers and other business partners, we do not have control over their business operations or governance and compliance systems, practices and procedures. Furthermore, our management of multiple third party service providers increases our operational complexity. Third parties have and could in the future experience cybersecurity attacks that may involve data we share with them or rely on them to provide to us with respect to timely notification and access to personnel and information concerning an incident, which may complicate our efforts to resolve any issues that arise. As a result, we are subject to the risk that the activities associated with our third party service providers and partners will adversely affect our business, even if the cyber security attack does not directly impact our systems or information. Additionally, these risks are also present in acquired businesses, joint ventures or companies that we invest in or with whom we partner. Such businesses use separate information systems or have not yet been fully integrated into our information systems.If we fail to comply with data privacy and personal data protection laws, we could be subject to adverse publicity, government enforcement actions and/or private litigation, which may negatively impact our business and operating results.We receive, process, transmit and store information relating to certain identified or identifiable individuals ("personal data"), including customers and current and former employees, in the ordinary course of business. As a result, we are subject to various U.S. and international laws and regulations relating to personal data. These laws are subject to change, and new personal data legislation may be enacted in other jurisdictions at any time. In the European Union, the General Data Protection Regulation ("GDPR") includes operational requirements for companies within scope who receive or otherwise process personal data of residents of data subjects (which may not necessarily be limited to those who are residents of the European Union) and also includes significant penalties for noncompliance. Additionally, privacy laws and regulations have been adopted or are being considered by various U.S. states. These data protection laws and regulations impose operational requirements, including disclosures to consumers about personal data practices, opt-out and consent choices and required contractual terms with certain third parties.These laws and regulations, as well as changes and new laws and regulations that apply to personal data, subject the Company to, among other things, additional costs and may require changes to our business practices, security systems, policies, and procedures. Inquiries from regulators and/or private litigation regarding our use of personal data could harm our reputation, cause loss of consumer confidence, and subject us to government enforcement actions (including fines and injunctions), which may result in potential loss of revenue, increased costs, liability for monetary damages or fines and/or criminal prosecution, thereby negatively impacting our business and operating results. Cybersecurity attacks could lead to disruptions in or loss of access to our data or business systems; an inability to process customer orders or lost customer orders; unauthorized release of confidential, proprietary or otherwise protected information belonging to us or our employees, customers, consumers, partners, or suppliers; lost revenues or other costs due to office, plant, production, warehouse or other facility disruption or shutdown; additional expenses, including the cost of remediating incidents or improving security measures, increased insurance costs, or ransomware payments; and corruption of data. Moreover, if our data management systems do not effectively collect, store, process and report relevant data for the operation of our business (such as due to a cybersecurity attack), our ability to effectively plan, forecast and execute our business plan and comply with applicable laws and regulations will be impaired, perhaps materially. We also may suffer reputational damage because of lost or misappropriated confidential or proprietary information belonging to us, or employees, customers, suppliers or other third party service providers, which could result in legal action and increased regulatory oversight, including governmental inquiries, investigations, enforcement actions and regulatory fines. Any such consequences could materially and adversely affect our financial condition, results of operations and cash flows. Although we maintain cybersecurity insurance coverage that may, subject to the policy's terms and conditions, cover certain aspects of a breach or disruption, such insurance coverage may be insufficient to cover all cybersecurity-related losses. Cybersecurity attacks, business interruptions and compliance issues experienced by third parties could materially and adversely affect our financial condition, results of operation and cash flows. We rely on relationships with third parties, including suppliers, distributors, bottlers, contract packers, contractors, cloud data storage and other information technology service providers and other external business partners, for certain functions or for services in support of our operations. These third-party service providers and partners, with whom we may share data, have, and could in the future, experience cybersecurity attacks. Third parties have been, and could in the future, experience challenges complying with laws and regulation, such as data protection requirements, and interruptions to business systems, disruption to operations, and employee failures. While we have procedures in place for selecting and managing our relationships with third-party service providers and other business partners, we do not have control over their business operations or governance and compliance systems, practices and procedures. Furthermore, our management of multiple third party service providers increases our operational complexity. Third parties have and could in the future experience cybersecurity attacks that may involve data we share with them or rely on them to provide to us with respect to timely notification and access to personnel and information concerning an incident, which may complicate our efforts to resolve any issues that arise. As a result, we are subject to the risk that the activities associated with our third party service providers and partners will adversely affect our business, even if the cyber security attack does not directly impact our systems or information. Additionally, these risks are also present in acquired businesses, joint ventures or companies that we invest in or with whom we partner. Such businesses use separate information systems or have not yet been fully integrated into our information systems. If we fail to comply with data privacy and personal data protection laws, we could be subject to adverse publicity, government enforcement actions and/or private litigation, which may negatively impact our business and operating results. We receive, process, transmit and store information relating to certain identified or identifiable individuals ("personal data"), including customers and current and former employees, in the ordinary course of business. As a result, we are subject to various U.S. and international laws and regulations relating to personal data. These laws are subject to change, and new personal data legislation may be enacted in other jurisdictions at any time. In the European Union, the General Data Protection Regulation ("GDPR") includes operational requirements for companies within scope who receive or otherwise process personal data of residents of data subjects (which may not necessarily be limited to those who are residents of the European Union) and also includes significant penalties for noncompliance. Additionally, privacy laws and regulations have been adopted or are being considered by various U.S. states. These data protection laws and regulations impose operational requirements, including disclosures to consumers about personal data practices, opt-out and consent choices and required contractual terms with certain third parties. These laws and regulations, as well as changes and new laws and regulations that apply to personal data, subject the Company to, among other things, additional costs and may require changes to our business practices, security systems, policies, and procedures. Inquiries from regulators and/or private litigation regarding our use of personal data could harm our reputation, cause loss of consumer confidence, and subject us to government enforcement actions (including fines and injunctions), which may result in potential loss of revenue, increased costs, liability for monetary damages or fines and/or criminal prosecution, thereby negatively impacting our business and operating results. 34 34 Table of ContentsFinancial RisksFluctuations in our effective tax rate could adversely affect our financial condition and results of operations.We are subject to income and other taxes in both the U.S. and certain foreign jurisdictions. Therefore, we are subject to audits for multiple tax years in various jurisdictions at once. We are in various stages of examination with certain states and certain foreign jurisdictions. Our 2021 through 2024 U.S. federal income tax returns are subject to examination by the IRS. Our state income tax returns are subject to examination for the 2020 through 2024 tax years. The United Kingdom and Ireland income tax returns are subject to examination for the 2020 through 2024 tax years.At any given time, events may occur which change our expectation about how any such tax audits will be resolved, and thus, there could be significant variability in our quarterly and/or annual tax rates, because these events may change our plans for uncertain tax positions.Changes in U.S. tax laws as a result of legislation proposed by a new U.S. presidential administration or U.S. Congress could affect our provision for income taxes, resulting in an adverse impact on our financial condition or results of operations. In addition, changes in the manner in which U.S. multinational corporations are taxed on foreign earnings, including changes in how existing tax laws are interpreted or enforced, could adversely affect our financial condition or results of operations. For example, the Organization for Economic Cooperation and Development ("OECD") has recommended changes to numerous long-standing international tax principles through its base erosion and profit shifting ("BEPS") project. These changes, to the extent adopted, may increase tax uncertainty, result in higher compliance costs and adversely affect our provision for income taxes, results of operations and/or cash flow. In connection with the OECD's BEPS project, companies are required to disclose more information to tax authorities on operations around the world, which may lead to greater audit scrutiny of profits earned in various countries. Economic and political pressures to increase tax revenues in jurisdictions in which we operate, or the adoption of new or reformed tax legislation or regulation, may make resolving tax disputes more difficult, and the final resolution of tax audits and any related litigation could differ from our historical provisions and accruals, resulting in an adverse impact on our financial condition or results of operations.We may be required to record a charge to earnings if our goodwill or intangible assets become impaired.Under United States Generally Accepted Accounting Principles ("GAAP"), we are required to test our indefinite lived intangible assets and goodwill for impairment at least annually and to review our intangible assets for impairment when events or changes in circumstances indicate the carrying value may not be recoverable. Factors that may be considered a change in circumstances indicating that the carrying value of our intangible assets may not be recoverable include declining or slower than anticipated growth rates for certain of our existing products, a decline in stock price and market capitalization, and slower growth rates in our industry.We may be required to record a charge to earnings during the period in which we determine that our intangible assets have been impaired. Any such charge would adversely impact our results of operations. As of December 31, 2024, our goodwill totaled approximately $1.33 billion and other intangible assets totaled approximately $1.41 billion. For the year ended December 31, 2024, we recorded $86.3 million and $40.8 million of impairment charges related to goodwill and to certain other indefinite lived intangible assets, respectively.Fluctuations in foreign currency exchange rates may adversely affect our operating results.We are exposed to foreign currency exchange rate risk with respect to our sales, expenses, profits, assets and liabilities denominated in currencies other than the U.S. dollar. We enter 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. We have not used instruments to hedge against all foreign currency risks and are therefore not protected against all foreign currency fluctuations. As a result, our reported earnings may be affected by changes in foreign currency exchange rates. Moreover, any favorable impacts to profit margins or financial results from fluctuations in foreign currency exchange rates are likely to be unsustainable over time. The current relative strength of the U.S. dollar has impacted our results of operations.35 Table of Contents Table of Contents Table of Contents Financial RisksFluctuations in our effective tax rate could adversely affect our financial condition and results of operations.We are subject to income and other taxes in both the U.S. and certain foreign jurisdictions. Therefore, we are subject to audits for multiple tax years in various jurisdictions at once. We are in various stages of examination with certain states and certain foreign jurisdictions. Our 2021 through 2024 U.S. federal income tax returns are subject to examination by the IRS. Our state income tax returns are subject to examination for the 2020 through 2024 tax years. The United Kingdom and Ireland income tax returns are subject to examination for the 2020 through 2024 tax years.At any given time, events may occur which change our expectation about how any such tax audits will be resolved, and thus, there could be significant variability in our quarterly and/or annual tax rates, because these events may change our plans for uncertain tax positions.Changes in U.S. tax laws as a result of legislation proposed by a new U.S. presidential administration or U.S. Congress could affect our provision for income taxes, resulting in an adverse impact on our financial condition or results of operations. In addition, changes in the manner in which U.S. multinational corporations are taxed on foreign earnings, including changes in how existing tax laws are interpreted or enforced, could adversely affect our financial condition or results of operations. For example, the Organization for Economic Cooperation and Development ("OECD") has recommended changes to numerous long-standing international tax principles through its base erosion and profit shifting ("BEPS") project. These changes, to the extent adopted, may increase tax uncertainty, result in higher compliance costs and adversely affect our provision for income taxes, results of operations and/or cash flow. In connection with the OECD's BEPS project, companies are required to disclose more information to tax authorities on operations around the world, which may lead to greater audit scrutiny of profits earned in various countries. Economic and political pressures to increase tax revenues in jurisdictions in which we operate, or the adoption of new or reformed tax legislation or regulation, may make resolving tax disputes more difficult, and the final resolution of tax audits and any related litigation could differ from our historical provisions and accruals, resulting in an adverse impact on our financial condition or results of operations.We may be required to record a charge to earnings if our goodwill or intangible assets become impaired.Under United States Generally Accepted Accounting Principles ("GAAP"), we are required to test our indefinite lived intangible assets and goodwill for impairment at least annually and to review our intangible assets for impairment when events or changes in circumstances indicate the carrying value may not be recoverable. Factors that may be considered a change in circumstances indicating that the carrying value of our intangible assets may not be recoverable include declining or slower than anticipated growth rates for certain of our existing products, a decline in stock price and market capitalization, and slower growth rates in our industry.We may be required to record a charge to earnings during the period in which we determine that our intangible assets have been impaired. Any such charge would adversely impact our results of operations. As of December 31, 2024, our goodwill totaled approximately $1.33 billion and other intangible assets totaled approximately $1.41 billion. For the year ended December 31, 2024, we recorded $86.3 million and $40.8 million of impairment charges related to goodwill and to certain other indefinite lived intangible assets, respectively.Fluctuations in foreign currency exchange rates may adversely affect our operating results.We are exposed to foreign currency exchange rate risk with respect to our sales, expenses, profits, assets and liabilities denominated in currencies other than the U.S. dollar. We enter 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. We have not used instruments to hedge against all foreign currency risks and are therefore not protected against all foreign currency fluctuations. As a result, our reported earnings may be affected by changes in foreign currency exchange rates. Moreover, any favorable impacts to profit margins or financial results from fluctuations in foreign currency exchange rates are likely to be unsustainable over time. The current relative strength of the U.S. dollar has impacted our results of operations. Financial RisksFluctuations in our effective tax rate could adversely affect our financial condition and results of operations.We are subject to income and other taxes in both the U.S. and certain foreign jurisdictions. Therefore, we are subject to audits for multiple tax years in various jurisdictions at once. We are in various stages of examination with certain states and certain foreign jurisdictions. Our 2021 through 2024 U.S. federal income tax returns are subject to examination by the IRS. Our state income tax returns are subject to examination for the 2020 through 2024 tax years. The United Kingdom and Ireland income tax returns are subject to examination for the 2020 through 2024 tax years.At any given time, events may occur which change our expectation about how any such tax audits will be resolved, and thus, there could be significant variability in our quarterly and/or annual tax rates, because these events may change our plans for uncertain tax positions.Changes in U.S. tax laws as a result of legislation proposed by a new U.S. presidential administration or U.S. Congress could affect our provision for income taxes, resulting in an adverse impact on our financial condition or results of operations. In addition, changes in the manner in which U.S. multinational corporations are taxed on foreign earnings, including changes in how existing tax laws are interpreted or enforced, could adversely affect our financial condition or results of operations. For example, the Organization for Economic Cooperation and Development ("OECD") has recommended changes to numerous long-standing international tax principles through its base erosion and profit shifting ("BEPS") project. These changes, to the extent adopted, may increase tax uncertainty, result in higher compliance costs and adversely affect our provision for income taxes, results of operations and/or cash flow. In connection with the OECD's BEPS project, companies are required to disclose more information to tax authorities on operations around the world, which may lead to greater audit scrutiny of profits earned in various countries. Economic and political pressures to increase tax revenues in jurisdictions in which we operate, or the adoption of new or reformed tax legislation or regulation, may make resolving tax disputes more difficult, and the final resolution of tax audits and any related litigation could differ from our historical provisions and accruals, resulting in an adverse impact on our financial condition or results of operations.We may be required to record a charge to earnings if our goodwill or intangible assets become impaired.Under United States Generally Accepted Accounting Principles ("GAAP"), we are required to test our indefinite lived intangible assets and goodwill for impairment at least annually and to review our intangible assets for impairment when events or changes in circumstances indicate the carrying value may not be recoverable. Factors that may be considered a change in circumstances indicating that the carrying value of our intangible assets may not be recoverable include declining or slower than anticipated growth rates for certain of our existing products, a decline in stock price and market capitalization, and slower growth rates in our industry.We may be required to record a charge to earnings during the period in which we determine that our intangible assets have been impaired. Any such charge would adversely impact our results of operations. As of December 31, 2024, our goodwill totaled approximately $1.33 billion and other intangible assets totaled approximately $1.41 billion. For the year ended December 31, 2024, we recorded $86.3 million and $40.8 million of impairment charges related to goodwill and to certain other indefinite lived intangible assets, respectively.Fluctuations in foreign currency exchange rates may adversely affect our operating results.We are exposed to foreign currency exchange rate risk with respect to our sales, expenses, profits, assets and liabilities denominated in currencies other than the U.S. dollar. We enter 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. We have not used instruments to hedge against all foreign currency risks and are therefore not protected against all foreign currency fluctuations. As a result, our reported earnings may be affected by changes in foreign currency exchange rates. Moreover, any favorable impacts to profit margins or financial results from fluctuations in foreign currency exchange rates are likely to be unsustainable over time. The current relative strength of the U.S. dollar has impacted our results of operations. --- ## Modified: Available-for-sale **Key changes:** - Reworded sentence: "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 years ended December 31, 2024, 2023 and 2022, realized gains or losses recognized on the sale of investments were not significant." **Prior (2024):** ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ 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 ​ $ - ​ 100 100 **Current (2025):** ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ 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 years ended December 31, 2024, 2023 and 2022, 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 Company held no short-term or long-term investments at December 31, 2024. The following table summarizes the underlying contractual maturities of the Company's investments at December 31, 2023. ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ 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 ​ ​ 93 93 --- ## Modified: 2.ACQUISITION **Key changes:** - Reworded sentence: "On July 31, 2023, a subsidiary of the Company, Blast Asset Acquisition LLC, completed its acquisition of substantially all of the assets of Vital Pharmaceuticals, Inc." - Reworded sentence: "​ 3.REVENUE RECOGNITION 3." - Reworded sentence: "Such bottlers generally combine the concentrates and/or beverage bases with sweeteners, water and other ingredients to produce ready-to-drink packaged energy drinks." - Reworded sentence: "The Company did not have any material unsatisfied performance obligations as of December 31, 2024 and 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 expense 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 with its non-alcohol bottlers/distributors and/or retailers are executed through separate agreements in the ordinary course of business." **Prior (2024):** ​ The Company determined the fair values as follows:●Trademarks - relief-from-royalty method of the income approach●Customer relationships - multi-period excess earnings method of the income approach●Property and equipment - cost approach and market approach●Inventory - comparative sales method and replacement cost method●Bang Transaction Gain - residual of net assets acquired less cash consideration transferredThe book value of the working capital (excluding inventory) approximates fair value due to the short-term nature of the accounts.For tax purposes, the Bang Transaction was recorded as an asset purchase.In accordance with Regulation S-X, pro forma unaudited condensed financial information for the Bang Transaction has not been provided as the impact of the transaction on the Company's financial position, results of operations and liquidity was not material.CANarchy Craft Brewery Collective LLC​On February 17, 2022, the Company completed its acquisition of CANarchy Craft Brewery Collective LLC ("CANarchy"), a craft beer and hard seltzer company, for $329.5 million in cash (net of cash acquired), after certain working capital adjustments (the "CANarchy Transaction"). The Company accounted for the CANarchy Transaction in accordance with FASB ASC 805. Effective January 31, 2024, CANarchy began operating under the name Monster Brewing Company.​In accordance with Regulation S-X, pro forma unaudited condensed financial information for the CANarchy Transaction has not been provided as the impact of the transaction on the Company's financial position, results of operations and liquidity was not material.​3. REVENUE RECOGNITIONRevenues are accounted for in accordance with FASB 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 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 energy drinks primarily to bottlers/distributors. In some cases, the Company sells ready-to-drink packaged energy drinks directly to retail grocery and specialty chains, wholesalers, club stores, mass merchandisers, convenience 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 The Company determined the fair values as follows: ●Trademarks - relief-from-royalty method of the income approach ●Customer relationships - multi-period excess earnings method of the income approach ●Property and equipment - cost approach and market approach ●Inventory - comparative sales method and replacement cost method ●Bang Transaction Gain - residual of net assets acquired less cash consideration transferred The book value of the working capital (excluding inventory) approximates fair value due to the short-term nature of the accounts. For tax purposes, the Bang Transaction was recorded as an asset purchase. In accordance with Regulation S-X, pro forma unaudited condensed financial information for the Bang Transaction has not been provided as the impact of the transaction on the Company's financial position, results of operations and liquidity was not material. CANarchy Craft Brewery Collective LLC ​ On February 17, 2022, the Company completed its acquisition of CANarchy Craft Brewery Collective LLC ("CANarchy"), a craft beer and hard seltzer company, for $329.5 million in cash (net of cash acquired), after certain working capital adjustments (the "CANarchy Transaction"). The Company accounted for the CANarchy Transaction in accordance with FASB ASC 805. Effective January 31, 2024, CANarchy began operating under the name Monster Brewing Company. ​ In accordance with Regulation S-X, pro forma unaudited condensed financial information for the CANarchy Transaction has not been provided as the impact of the transaction on the Company's financial position, results of operations and liquidity was not material. ​ 3. REVENUE RECOGNITION Revenues are accounted for in accordance with FASB 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 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 energy drinks primarily to bottlers/distributors. In some cases, the Company sells ready-to-drink packaged energy drinks directly to retail grocery and specialty chains, wholesalers, club stores, mass merchandisers, convenience 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 95 95 Table of ContentsMONSTER BEVERAGE CORPORATION AND SUBSIDIARIESNOTES TO CONSOLIDATED FINANCIAL STATEMENTS(Tabular Dollars in Thousands, Except Per Share Amounts)​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 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 December 31, 2023 and 2022.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 expense 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 with its non-alcohol bottlers/distributors and/or retailers are executed through separate agreements in the ordinary course of business. These agreements generally provide for one or 96 Table of ContentsMONSTER BEVERAGE CORPORATION AND SUBSIDIARIESNOTES TO CONSOLIDATED FINANCIAL STATEMENTS(Tabular Dollars in Thousands, Except Per Share Amounts)​ Table of Contents Table of Contents **Current (2025):** 2. On July 31, 2023, a subsidiary of the Company, Blast Asset Acquisition LLC, completed its acquisition of substantially all of the assets of Vital Pharmaceuticals, Inc. and certain of its affiliates (collectively, "Bang Energy") (the "Bang Transaction"). The acquired assets primarily include the Bang Energy® drinks business and a beverage production facility in Phoenix, AZ. The Company accounted for the Bang Transaction in accordance with FASB ASC 805. In accordance with Regulation S-X, pro forma unaudited condensed financial information for the Bang Transaction has not been provided as the impact of the transaction on the Company's financial position, results of operations and liquidity was not material. ​ 3.REVENUE RECOGNITION 3. Revenues are accounted for in accordance with FASB 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 and Bang Energy® drinks, (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, FMBs and hard seltzers 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/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. 88 88 Table of ContentsMONSTER BEVERAGE CORPORATION AND SUBSIDIARIESNOTES TO CONSOLIDATED FINANCIAL STATEMENTS(Tabular Dollars in Thousands, Except Per Share Amounts)​The Company's Alcohol Brands segment primarily generates operating revenues by selling kegged and ready-to-drink canned beers, FMBs and hard seltzers 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 December 31, 2024 and 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 expense 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 with its non-alcohol 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, 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.89 Table of ContentsMONSTER BEVERAGE CORPORATION AND SUBSIDIARIESNOTES TO CONSOLIDATED FINANCIAL STATEMENTS(Tabular Dollars in Thousands, Except Per Share Amounts)​ Table of Contents Table of Contents --- ## Modified: Provision for Income Taxes **Key changes:** - Reworded sentence: "Provision for income taxes was $480.4 million for the year ended December 31, 2024, an increase of $42.9 million, or 9.8% higher than the provision for income taxes of $437.5 million for the year ended December 31, 2023." **Prior (2024):** Provision for income taxes was $437.5 million for the year ended December 31, 2023, an increase of $57.2 million, or 15.0% higher than the provision for income taxes of $380.3 million for the year ended December 31, 2022. The effective combined federal, state and foreign tax rate was 21.2% and 24.2% for the years ended December 31, 2023 and 2022, respectively. The decrease in the effective tax rate was primarily attributable to the increase in the stock compensation deduction for the year ended December 31, 2023. Net Income Net income was $1.63 billion for the year ended December 31, 2023, an increase of $439.4 million, or 36.9% higher than net income of $1.19 billion for the year ended December 31, 2022. The increase in net income for the year ended December 31, 2023 was primarily due to the increase in gross profit. **Current (2025):** Provision for income taxes was $480.4 million for the year ended December 31, 2024, an increase of $42.9 million, or 9.8% higher than the provision for income taxes of $437.5 million for the year ended December 31, 2023. The effective combined federal, state and foreign tax rate was 24.1% and 21.2% for the years ended December 31, 2024 and 2023, respectively. The increase in the effective tax rate was primarily attributable to a decrease in the stock-based compensation deduction for the year ended December 31, 2024. Net Income Net income was $1.51 billion for the year ended December 31, 2024, a decrease of $121.9 million, or 7.5% lower than net income of $1.63 billion for the year ended December 31, 2023. The decrease in net income for the year ended December 31, 2024 was primarily due to the Alcohol Impairment Charges. --- ## Modified: Definition and Limitations of Internal Control Over Financial Reporting **Key changes:** - Reworded sentence: "A company's internal control over financial reporting is a process designed 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." - Reworded sentence: "63 63 Table of ContentsBecause of its inherent limitations, internal control over financial reporting may not prevent or detect misstatements." - Reworded sentence: "​ ​ ​ ​ ​ ​ ​ ​ /s/ Ernst & Young LLP Irvine, California ​ February 28, 2025 ​ ​ ITEM 9B.OTHER INFORMATION During the three-months ended December 31, 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)." **Prior (2024):** ​ A company's internal control over financial reporting is a process designed 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. A company's internal control over financial reporting includes those policies and procedures that (1) pertain to the maintenance of records that, in reasonable detail, accurately and fairly reflect the transactions and dispositions of the assets of the company; (2) provide reasonable assurance that transactions are recorded as necessary to permit preparation of financial statements in accordance with generally accepted accounting principles, and that receipts and expenditures of the company are being made only in accordance with authorizations of management and directors of the company; and (3) provide reasonable assurance regarding prevention or timely detection of unauthorized acquisition, use, or disposition of the company's assets that could have a material effect on the financial statements. ​ Because of its inherent limitations, internal control over financial reporting may not prevent or detect misstatements. Also, projections of any evaluation of effectiveness to future periods are subject to the risk that controls may become inadequate because of changes in conditions, or that the degree of compliance with the policies or procedures may deteriorate. ​ ​ ​ ​ ​ ​ ​ ​ /s/ Ernst & Young LLP Irvine, CA ​ February 29, 2024 ​ ​ 69 69 Table of ContentsITEM 9B.OTHER INFORMATIONNone.​ITEM 9C.DISCLOSURE REGARDING FOREIGN JURISDICITONS THAT PREVENT INSPECTIONSNot applicable.​70 Table of Contents Table of Contents Table of Contents ITEM 9B.OTHER INFORMATIONNone.​ITEM 9C.DISCLOSURE REGARDING FOREIGN JURISDICITONS THAT PREVENT INSPECTIONSNot applicable.​ ITEM 9B.OTHER INFORMATION None. ​ ITEM 9C.DISCLOSURE REGARDING FOREIGN JURISDICITONS THAT PREVENT INSPECTIONS Not applicable. ​ 70 70 Table of ContentsPART IIIITEM 10.DIRECTORS, EXECUTIVE OFFICERS AND CORPORATE GOVERNANCEThe information required by this item regarding our directors is included under the caption "Proposal One - Election of Directors" in our Proxy Statement for our 2024 Annual Meeting of Stockholders to be filed with the SEC within 120 days after the end of the fiscal year ended December 31, 2023 (the "2024 Proxy Statement") and is incorporated herein by reference.Information concerning compliance with Section 16(a) of the Exchange Act is included under the caption "Delinquent Section 16(a) Reports" in our 2023 Proxy Statement and is incorporated herein by reference.Information concerning the Audit Committee and the Audit Committee Financial Expert is reported under the caption "Audit Committee; Report of the Audit Committee; Duties and Responsibilities" in our 2024 Proxy Statement and is incorporated herein by reference.Code of Business Conduct and EthicsWe have adopted a Code of Business Conduct and Ethics that applies to all our directors, officers (including our principal executive officers, principal financial officer, principal accounting officer and controllers) and employees. The Code of Business Conduct and Ethics and any amendment thereto, as well as any waivers that are required to be disclosed by the rules of the SEC or NASDAQ, may be obtained at http://investors.monsterbevcorp.com/corporate-governance or at no cost to you by writing or telephoning us at the following address or telephone number:Monster Beverage Corporation1 Monster WayCorona, CA 92879(951) 739-6200(800) 426-7367​ITEM 11.EXECUTIVE COMPENSATIONInformation concerning the compensation of our directors and executive officers and Compensation Committee Interlocks and Insider Participation is reported under the captions "Compensation Discussion and Analysis," and "Compensation Committee," respectively, in our 2024 Proxy Statement and is incorporated herein by reference.​ITEM 12.SECURITY OWNERSHIP OF CERTAIN BENEFICIAL OWNERS AND MANAGEMENT AND RELATED STOCKHOLDER MATTERSThe disclosure set forth in Item 5, "Market for the Registrant's Common Equity, Related Stockholder Matters and Issuer Repurchases of Equity Securities", of this report is incorporated herein.Information concerning the beneficial ownership of the Company's Common Stock of (a) those persons known to the Company to be the beneficial owners of more than 5% of the Company's common stock; (b) each of the Company's directors and nominees for director; and (c) the Company's executive officers and all of the Company's current directors and executive officers as a group is reported under the caption "Principal Stockholders and Security Ownership of Management" in our 2024 Proxy Statement and is incorporated herein by reference.​Information concerning shares of the Company's Common Stock authorized for issuance under the Company's equity compensation plans is reported under the caption "Employee Equity Compensation Plan Information" in our 2024 Proxy Statement and is incorporated herein by reference.71 Table of Contents Table of Contents Table of Contents PART IIIITEM 10.DIRECTORS, EXECUTIVE OFFICERS AND CORPORATE GOVERNANCEThe information required by this item regarding our directors is included under the caption "Proposal One - Election of Directors" in our Proxy Statement for our 2024 Annual Meeting of Stockholders to be filed with the SEC within 120 days after the end of the fiscal year ended December 31, 2023 (the "2024 Proxy Statement") and is incorporated herein by reference.Information concerning compliance with Section 16(a) of the Exchange Act is included under the caption "Delinquent Section 16(a) Reports" in our 2023 Proxy Statement and is incorporated herein by reference.Information concerning the Audit Committee and the Audit Committee Financial Expert is reported under the caption "Audit Committee; Report of the Audit Committee; Duties and Responsibilities" in our 2024 Proxy Statement and is incorporated herein by reference.Code of Business Conduct and EthicsWe have adopted a Code of Business Conduct and Ethics that applies to all our directors, officers (including our principal executive officers, principal financial officer, principal accounting officer and controllers) and employees. The Code of Business Conduct and Ethics and any amendment thereto, as well as any waivers that are required to be disclosed by the rules of the SEC or NASDAQ, may be obtained at http://investors.monsterbevcorp.com/corporate-governance or at no cost to you by writing or telephoning us at the following address or telephone number:Monster Beverage Corporation1 Monster WayCorona, CA 92879(951) 739-6200(800) 426-7367​ITEM 11.EXECUTIVE COMPENSATIONInformation concerning the compensation of our directors and executive officers and Compensation Committee Interlocks and Insider Participation is reported under the captions "Compensation Discussion and Analysis," and "Compensation Committee," respectively, in our 2024 Proxy Statement and is incorporated herein by reference.​ITEM 12.SECURITY OWNERSHIP OF CERTAIN BENEFICIAL OWNERS AND MANAGEMENT AND RELATED STOCKHOLDER MATTERSThe disclosure set forth in Item 5, "Market for the Registrant's Common Equity, Related Stockholder Matters and Issuer Repurchases of Equity Securities", of this report is incorporated herein.Information concerning the beneficial ownership of the Company's Common Stock of (a) those persons known to the Company to be the beneficial owners of more than 5% of the Company's common stock; (b) each of the Company's directors and nominees for director; and (c) the Company's executive officers and all of the Company's current directors and executive officers as a group is reported under the caption "Principal Stockholders and Security Ownership of Management" in our 2024 Proxy Statement and is incorporated herein by reference.​Information concerning shares of the Company's Common Stock authorized for issuance under the Company's equity compensation plans is reported under the caption "Employee Equity Compensation Plan Information" in our 2024 Proxy Statement and is incorporated herein by reference. PART III ITEM 10.DIRECTORS, EXECUTIVE OFFICERS AND CORPORATE GOVERNANCE The information required by this item regarding our directors is included under the caption "Proposal One - Election of Directors" in our Proxy Statement for our 2024 Annual Meeting of Stockholders to be filed with the SEC within 120 days after the end of the fiscal year ended December 31, 2023 (the "2024 Proxy Statement") and is incorporated herein by reference. Information concerning compliance with Section 16(a) of the Exchange Act is included under the caption "Delinquent Section 16(a) Reports" in our 2023 Proxy Statement and is incorporated herein by reference. Information concerning the Audit Committee and the Audit Committee Financial Expert is reported under the caption "Audit Committee; Report of the Audit Committee; Duties and Responsibilities" in our 2024 Proxy Statement and is incorporated herein by reference. **Current (2025):** A company's internal control over financial reporting is a process designed 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. A company's internal control over financial reporting includes those policies and procedures that (1) pertain to the maintenance of records that, in reasonable detail, accurately and fairly reflect the transactions and dispositions of the assets of the company; (2) provide reasonable assurance that transactions are recorded as necessary to permit preparation of financial statements in accordance with generally accepted accounting principles, and that receipts and expenditures of the company are being made only in accordance with authorizations of management and directors of the company; and (3) provide reasonable assurance regarding prevention or timely detection of unauthorized acquisition, use, or disposition of the company's assets that could have a material effect on the financial statements. 63 63 Table of ContentsBecause of its inherent limitations, internal control over financial reporting may not prevent or detect misstatements. Also, projections of any evaluation of effectiveness to future periods are subject to the risk that controls may become inadequate because of changes in conditions, or that the degree of compliance with the policies or procedures may deteriorate.​​​​/s/ Ernst & Young LLPIrvine, California​February 28, 2025​​ITEM 9B.OTHER INFORMATIONDuring the three-months ended December 31, 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).​ITEM 9C.DISCLOSURE REGARDING FOREIGN JURISDICITONS THAT PREVENT INSPECTIONSNot applicable.​64 Table of Contents Table of Contents Table of Contents Because of its inherent limitations, internal control over financial reporting may not prevent or detect misstatements. Also, projections of any evaluation of effectiveness to future periods are subject to the risk that controls may become inadequate because of changes in conditions, or that the degree of compliance with the policies or procedures may deteriorate.​​​​/s/ Ernst & Young LLPIrvine, California​February 28, 2025​​ITEM 9B.OTHER INFORMATIONDuring the three-months ended December 31, 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).​ITEM 9C.DISCLOSURE REGARDING FOREIGN JURISDICITONS THAT PREVENT INSPECTIONSNot applicable.​ Because of its inherent limitations, internal control over financial reporting may not prevent or detect misstatements. Also, projections of any evaluation of effectiveness to future periods are subject to the risk that controls may become inadequate because of changes in conditions, or that the degree of compliance with the policies or procedures may deteriorate.​​​​/s/ Ernst & Young LLPIrvine, California​February 28, 2025​​ITEM 9B.OTHER INFORMATIONDuring the three-months ended December 31, 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).​ITEM 9C.DISCLOSURE REGARDING FOREIGN JURISDICITONS THAT PREVENT INSPECTIONSNot applicable.​ Because of its inherent limitations, internal control over financial reporting may not prevent or detect misstatements. Also, projections of any evaluation of effectiveness to future periods are subject to the risk that controls may become inadequate because of changes in conditions, or that the degree of compliance with the policies or procedures may deteriorate. ​ ​ ​ ​ ​ ​ ​ ​ /s/ Ernst & Young LLP Irvine, California ​ February 28, 2025 ​ ​ ITEM 9B.OTHER INFORMATION During the three-months ended December 31, 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). adopted modified terminated ​ ITEM 9C.DISCLOSURE REGARDING FOREIGN JURISDICITONS THAT PREVENT INSPECTIONS Not applicable. ​ 64 64 Table of ContentsPART IIIITEM 10.DIRECTORS, EXECUTIVE OFFICERS AND CORPORATE GOVERNANCEThe information required by this item regarding our directors is included under the caption "Proposal One - Election of Directors" in our Proxy Statement for our 2025 Annual Meeting of Stockholders to be filed with the SEC within 120 days after the end of the fiscal year ended December 31, 2024 (the "2025 Proxy Statement") and is incorporated herein by reference.Information concerning compliance with Section 16(a) of the Exchange Act is included under the caption "Delinquent Section 16(a) Reports" in our 2025 Proxy Statement and is incorporated herein by reference.Information concerning the Audit Committee and the Audit Committee Financial Expert is reported under the caption "Audit Committee; Report of the Audit Committee; Duties and Responsibilities" in our 2025 Proxy Statement and is incorporated herein by reference.Code of Business Conduct and EthicsWe have adopted a Code of Business Conduct and Ethics that applies to all our directors, officers (including our principal executive officers, principal financial officer, principal accounting officer and controllers) and employees. The Code of Business Conduct and Ethics and any amendment thereto, as well as any waivers that are required to be disclosed by the rules of the SEC or NASDAQ, may be obtained at http://investors.monsterbevcorp.com/corporate-governance or at no cost to you by writing or telephoning us at the following address or telephone number:Monster Beverage Corporation1 Monster WayCorona, CA 92879(951) 739-6200(800) 426-7367​ITEM 11.EXECUTIVE COMPENSATIONInformation concerning the compensation of our directors and executive officers and Compensation Committee Interlocks and Insider Participation is reported under the captions "Compensation Discussion and Analysis," and "Compensation Committee," respectively, in our 2025 Proxy Statement and is incorporated herein by reference.​65 Table of Contents Table of Contents Table of Contents PART IIIITEM 10.DIRECTORS, EXECUTIVE OFFICERS AND CORPORATE GOVERNANCEThe information required by this item regarding our directors is included under the caption "Proposal One - Election of Directors" in our Proxy Statement for our 2025 Annual Meeting of Stockholders to be filed with the SEC within 120 days after the end of the fiscal year ended December 31, 2024 (the "2025 Proxy Statement") and is incorporated herein by reference.Information concerning compliance with Section 16(a) of the Exchange Act is included under the caption "Delinquent Section 16(a) Reports" in our 2025 Proxy Statement and is incorporated herein by reference.Information concerning the Audit Committee and the Audit Committee Financial Expert is reported under the caption "Audit Committee; Report of the Audit Committee; Duties and Responsibilities" in our 2025 Proxy Statement and is incorporated herein by reference.Code of Business Conduct and EthicsWe have adopted a Code of Business Conduct and Ethics that applies to all our directors, officers (including our principal executive officers, principal financial officer, principal accounting officer and controllers) and employees. The Code of Business Conduct and Ethics and any amendment thereto, as well as any waivers that are required to be disclosed by the rules of the SEC or NASDAQ, may be obtained at http://investors.monsterbevcorp.com/corporate-governance or at no cost to you by writing or telephoning us at the following address or telephone number:Monster Beverage Corporation1 Monster WayCorona, CA 92879(951) 739-6200(800) 426-7367​ITEM 11.EXECUTIVE COMPENSATIONInformation concerning the compensation of our directors and executive officers and Compensation Committee Interlocks and Insider Participation is reported under the captions "Compensation Discussion and Analysis," and "Compensation Committee," respectively, in our 2025 Proxy Statement and is incorporated herein by reference.​ PART IIIITEM 10.DIRECTORS, EXECUTIVE OFFICERS AND CORPORATE GOVERNANCEThe information required by this item regarding our directors is included under the caption "Proposal One - Election of Directors" in our Proxy Statement for our 2025 Annual Meeting of Stockholders to be filed with the SEC within 120 days after the end of the fiscal year ended December 31, 2024 (the "2025 Proxy Statement") and is incorporated herein by reference.Information concerning compliance with Section 16(a) of the Exchange Act is included under the caption "Delinquent Section 16(a) Reports" in our 2025 Proxy Statement and is incorporated herein by reference.Information concerning the Audit Committee and the Audit Committee Financial Expert is reported under the caption "Audit Committee; Report of the Audit Committee; Duties and Responsibilities" in our 2025 Proxy Statement and is incorporated herein by reference.Code of Business Conduct and EthicsWe have adopted a Code of Business Conduct and Ethics that applies to all our directors, officers (including our principal executive officers, principal financial officer, principal accounting officer and controllers) and employees. The Code of Business Conduct and Ethics and any amendment thereto, as well as any waivers that are required to be disclosed by the rules of the SEC or NASDAQ, may be obtained at http://investors.monsterbevcorp.com/corporate-governance or at no cost to you by writing or telephoning us at the following address or telephone number:Monster Beverage Corporation1 Monster WayCorona, CA 92879(951) 739-6200(800) 426-7367​ITEM 11.EXECUTIVE COMPENSATIONInformation concerning the compensation of our directors and executive officers and Compensation Committee Interlocks and Insider Participation is reported under the captions "Compensation Discussion and Analysis," and "Compensation Committee," respectively, in our 2025 Proxy Statement and is incorporated herein by reference.​ PART III ITEM 10.DIRECTORS, EXECUTIVE OFFICERS AND CORPORATE GOVERNANCE The information required by this item regarding our directors is included under the caption "Proposal One - Election of Directors" in our Proxy Statement for our 2025 Annual Meeting of Stockholders to be filed with the SEC within 120 days after the end of the fiscal year ended December 31, 2024 (the "2025 Proxy Statement") and is incorporated herein by reference. Information concerning compliance with Section 16(a) of the Exchange Act is included under the caption "Delinquent Section 16(a) Reports" in our 2025 Proxy Statement and is incorporated herein by reference. Information concerning the Audit Committee and the Audit Committee Financial Expert is reported under the caption "Audit Committee; Report of the Audit Committee; Duties and Responsibilities" in our 2025 Proxy Statement and is incorporated herein by reference. --- ## Modified: (Tabular Dollars in Thousands, Except Per Share Amounts) **Key changes:** - Reworded sentence: "​ Stock-Based Compensation - The Company accounts for stock-based compensation under the provisions of FASB ASC 718." - Reworded sentence: "The Company continues to endeavor to secure the availability of alternative sources for such components and minimize the risk of any disruption in production.The Coca-Cola Company ("TCCC"), through certain wholly-owned subsidiaries (the "TCCC Subsidiaries"), accounted for approximately 3%, 2% and 2% of the Company's net sales for the years ended December 31, 2024, 2023 and 2022, respectively.Coca-Cola Europacific Partners accounted for approximately 14%, 13% and 13% of the Company's net sales for the years ended December 31, 2024, 2023 and 2022, respectively.Coca-Cola Consolidated, Inc." - Reworded sentence: "Actual results could differ from those estimates." - Reworded sentence: "The Coca-Cola Company ("TCCC"), through certain wholly-owned subsidiaries (the "TCCC Subsidiaries"), accounted for approximately 3%, 2% and 2% of the Company's net sales for the years ended December 31, 2024, 2023 and 2022, respectively." - Reworded sentence: "accounted for approximately 10%, 10% and 11% of the Company's net sales for the years ended December 31, 2024, 2023 and 2022, respectively." **Prior (2024):** ​ Net Income Per Common Share - In accordance with FASB ASC 260, net income per common share, on a basic and diluted basis, is presented for all periods. Basic net income per share is computed by dividing net income by the weighted average number of common shares outstanding during each period. Diluted net income per share is computed by dividing net income by the weighted average number of common and dilutive common equivalent shares outstanding. The calculation of common equivalent shares assumes the exercise of dilutive stock options, net of assumed treasury share repurchases at average market prices, as applicable.Concentration of Risk - Certain of the Company's products utilize components (raw materials and/or co-packing services) from a limited number of sources. A disruption in the supply of such components could significantly affect the Company's revenues from those products, as alternative sources of such components may not be available at commercially reasonable rates or within a reasonably short time period. The Company continues to endeavor to secure the availability of alternative sources for such components and minimize the risk of any disruption in production.The Coca-Cola Company ("TCCC"), through certain wholly-owned subsidiaries (the "TCCC Subsidiaries"), accounted for approximately 2% of the Company's net sales for the years ended December 31, 2023, 2022 and 2021.Coca-Cola Consolidated, Inc. accounted for approximately 10%, 11% and 12% of the Company's net sales for the years ended December 31, 2023, 2022 and 2021, respectively.Reyes Coca-Cola Bottling, LLC accounted for approximately 9%, 9% and 10% of the Company's net sales for the years ended December 31, 2023, 2022 and 2021, respectively.Coca-Cola Europacific Partners accounted for approximately 13%, 13% and 12% of the Company's net sales for the years ended December 31, 2023, 2022 and 2021, respectively.Credit Risk - The Company sells its products nationally and internationally, primarily to bottlers and full service beverage distributors ("bottlers/distributors"), retail grocery and specialty chains, wholesalers, club stores, mass merchandisers, convenience chains, drug stores, foodservice customers, value stores, e-commerce retailers and the military. The Company performs ongoing credit evaluations of its customers and generally does not require collateral. The Company maintains reserves for estimated credit losses, and historically, such losses have been within management's expectations.Fair Value of Financial Instruments - The carrying value of the Company's financial instruments, including cash and cash equivalents, accounts receivable, accounts payable and accrued liabilities, approximate fair value due to the relatively short maturity of the respective instruments.Use of Estimates - The preparation of the consolidated financial statements in conformity with GAAP 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 period. Actual results could differ from those estimates.Recent Accounting Pronouncements - In November 2023, the 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. Net Income Per Common Share - In accordance with FASB ASC 260, net income per common share, on a basic and diluted basis, is presented for all periods. Basic net income per share is computed by dividing net income by the weighted average number of common shares outstanding during each period. Diluted net income per share is computed by dividing net income by the weighted average number of common and dilutive common equivalent shares outstanding. The calculation of common equivalent shares assumes the exercise of dilutive stock options, net of assumed treasury share repurchases at average market prices, as applicable. Concentration of Risk - Certain of the Company's products utilize components (raw materials and/or co-packing services) from a limited number of sources. A disruption in the supply of such components could significantly affect the Company's revenues from those products, as alternative sources of such components may not be available at commercially reasonable rates or within a reasonably short time period. The Company continues to endeavor to secure the availability of alternative sources for such components and minimize the risk of any disruption in production. The Coca-Cola Company ("TCCC"), through certain wholly-owned subsidiaries (the "TCCC Subsidiaries"), accounted for approximately 2% of the Company's net sales for the years ended December 31, 2023, 2022 and 2021. Coca-Cola Consolidated, Inc. accounted for approximately 10%, 11% and 12% of the Company's net sales for the years ended December 31, 2023, 2022 and 2021, respectively. Reyes Coca-Cola Bottling, LLC accounted for approximately 9%, 9% and 10% of the Company's net sales for the years ended December 31, 2023, 2022 and 2021, respectively. Coca-Cola Europacific Partners accounted for approximately 13%, 13% and 12% of the Company's net sales for the years ended December 31, 2023, 2022 and 2021, respectively. Credit Risk - The Company sells its products nationally and internationally, primarily to bottlers and full service beverage distributors ("bottlers/distributors"), retail grocery and specialty chains, wholesalers, club stores, mass merchandisers, convenience chains, drug stores, foodservice customers, value stores, e-commerce retailers and the military. The Company performs ongoing credit evaluations of its customers and generally does not require collateral. The Company maintains reserves for estimated credit losses, and historically, such losses have been within management's expectations. Fair Value of Financial Instruments - The carrying value of the Company's financial instruments, including cash and cash equivalents, accounts receivable, accounts payable and accrued liabilities, approximate fair value due to the relatively short maturity of the respective instruments. Use of Estimates - The preparation of the consolidated financial statements in conformity with GAAP 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 period. Actual results could differ from those estimates. Recent Accounting Pronouncements - In November 2023, the 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. 93 93 Table of ContentsMONSTER BEVERAGE CORPORATION AND SUBSIDIARIESNOTES TO CONSOLIDATED FINANCIAL STATEMENTS(Tabular Dollars in Thousands, Except Per Share Amounts)​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. ACQUISITIONS Bang Energy​On July 31, 2023, a subsidiary of the Company, Blast Asset Acquisition LLC, completed its acquisition of substantially all of the assets of Vital Pharmaceuticals, Inc. and certain of its affiliates (collectively, "Bang Energy") (the "Bang Transaction"). The acquired assets primarily include the Bang Energy® drinks business and a beverage production facility in Phoenix, AZ.​The Company accounted for the Bang Transaction in accordance with FASB ASC 805. Under the acquisition method of accounting, the Company allocated the purchase price of the acquisition to identifiable assets acquired and liabilities assumed based on their estimated fair values as of the acquisition date. During the year ended December 31, 2023, in connection with the Bang Transaction, the Company recorded a gain of $45.4 million in interest and other income (expense), net within the consolidated statements of income and reported within the Corporate and Unallocated segment (the "Bang Transaction Gain"). During the year ended December 31, 2023, the Company incurred $16.1 million of acquisition costs related to the Bang Transaction. Acquisition costs are included in operating expenses within the consolidated statements of income.The following table summarizes the final fair value allocations of the Bang Transaction:​​​​​​​​​​Identifiable ​​​​​Assets​​​​​Acquired and ​​​​​(Liabilities)​​Consideration ​ Assumed TransferredIntangibles - trademarks (non-amortizing)​$ 209,000​$ - Intangibles - customer relationships (amortizing) ​ 23,000 ​ - Property and equipment, net ​ 143,200 ​ - Inventory ​ 30,496 ​ - Right-of-use assets ​ 12,523 ​ - Operating lease liabilities ​ (12,523) ​ - Working capital (excluding inventory) ​ 2,871 ​ - Other ​ 200 ​ - Cash ​ - ​ 363,385Bang Transaction Gain ​ - ​ 45,382Total​$ 408,767​$ 408,767​94 Table of ContentsMONSTER BEVERAGE CORPORATION AND SUBSIDIARIESNOTES TO CONSOLIDATED FINANCIAL STATEMENTS(Tabular Dollars in Thousands, Except Per Share Amounts)​ Table of Contents Table of Contents **Current (2025):** ​ Stock-Based Compensation - The Company accounts for stock-based compensation under the provisions of FASB ASC 718. The Company records compensation expense for employee stock options based on the estimated fair value of the options on the date of grant using the Black-Scholes-Merton option pricing formula. The Company records compensation expense for non-employee stock options based on the estimated fair value of the options as of the earlier of (1) the date at which a commitment for performance by the non-employee to earn the stock option is reached or (2) the date at which the non-employee's performance is complete, using the Black-Scholes-Merton option pricing formula. Stock-based compensation cost 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. See Note 16.Net Income Per Common Share - In accordance with FASB ASC 260, net income per common share, on a basic and diluted basis, is presented for all periods. Basic net income per share is computed by dividing net income by the weighted average number of common shares outstanding during each period. Diluted net income per share is computed by dividing net income by the weighted average number of common and dilutive common equivalent shares outstanding. The calculation of common equivalent shares assumes the exercise of dilutive stock options, net of assumed treasury share repurchases at average market prices, as applicable.Concentration of Risk - Certain of the Company's products utilize components (raw materials and/or co-packing services) from a limited number of sources. A disruption in the supply of such components could significantly affect the Company's revenues from those products, as alternative sources of such components may not be available at commercially reasonable rates or within a reasonably short time period. The Company continues to endeavor to secure the availability of alternative sources for such components and minimize the risk of any disruption in production.The Coca-Cola Company ("TCCC"), through certain wholly-owned subsidiaries (the "TCCC Subsidiaries"), accounted for approximately 3%, 2% and 2% of the Company's net sales for the years ended December 31, 2024, 2023 and 2022, respectively.Coca-Cola Europacific Partners accounted for approximately 14%, 13% and 13% of the Company's net sales for the years ended December 31, 2024, 2023 and 2022, respectively.Coca-Cola Consolidated, Inc. accounted for approximately 10%, 10% and 11% of the Company's net sales for the years ended December 31, 2024, 2023 and 2022, respectively.Reyes Holdings, LLC accounted for approximately 9% of the Company's net sales for the years ended December 31, 2024, 2023 and 2022.Credit Risk - The Company sells its products nationally and internationally, primarily to bottlers and full service beverage distributors ("bottlers/distributors"), 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 performs ongoing credit evaluations of its customers and generally does not require collateral. The Company maintains reserves for estimated credit losses, and historically, such losses have been within management's expectations.Fair Value of Financial Instruments - The carrying value of the Company's financial instruments, including cash and cash equivalents, accounts receivable, accounts payable and accrued liabilities, approximate fair value due to the relatively short maturity of the respective instruments.Use of Estimates - The preparation of the consolidated financial statements in conformity with GAAP 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 period. Actual results could differ from those estimates. Stock-Based Compensation - The Company accounts for stock-based compensation under the provisions of FASB ASC 718. The Company records compensation expense for employee stock options based on the estimated fair value of the options on the date of grant using the Black-Scholes-Merton option pricing formula. The Company records compensation expense for non-employee stock options based on the estimated fair value of the options as of the earlier of (1) the date at which a commitment for performance by the non-employee to earn the stock option is reached or (2) the date at which the non-employee's performance is complete, using the Black-Scholes-Merton option pricing formula. Stock-based compensation cost 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. See Note 16.Net Income Per Common Share - In accordance with FASB ASC 260, net income per common share, on a basic and diluted basis, is presented for all periods. Basic net income per share is computed by dividing net income by the weighted average number of common shares outstanding during each period. Diluted net income per share is computed by dividing net income by the weighted average number of common and dilutive common equivalent shares outstanding. The calculation of common equivalent shares assumes the exercise of dilutive stock options, net of assumed treasury share repurchases at average market prices, as applicable.Concentration of Risk - Certain of the Company's products utilize components (raw materials and/or co-packing services) from a limited number of sources. A disruption in the supply of such components could significantly affect the Company's revenues from those products, as alternative sources of such components may not be available at commercially reasonable rates or within a reasonably short time period. The Company continues to endeavor to secure the availability of alternative sources for such components and minimize the risk of any disruption in production.The Coca-Cola Company ("TCCC"), through certain wholly-owned subsidiaries (the "TCCC Subsidiaries"), accounted for approximately 3%, 2% and 2% of the Company's net sales for the years ended December 31, 2024, 2023 and 2022, respectively.Coca-Cola Europacific Partners accounted for approximately 14%, 13% and 13% of the Company's net sales for the years ended December 31, 2024, 2023 and 2022, respectively.Coca-Cola Consolidated, Inc. accounted for approximately 10%, 10% and 11% of the Company's net sales for the years ended December 31, 2024, 2023 and 2022, respectively.Reyes Holdings, LLC accounted for approximately 9% of the Company's net sales for the years ended December 31, 2024, 2023 and 2022.Credit Risk - The Company sells its products nationally and internationally, primarily to bottlers and full service beverage distributors ("bottlers/distributors"), 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 performs ongoing credit evaluations of its customers and generally does not require collateral. The Company maintains reserves for estimated credit losses, and historically, such losses have been within management's expectations.Fair Value of Financial Instruments - The carrying value of the Company's financial instruments, including cash and cash equivalents, accounts receivable, accounts payable and accrued liabilities, approximate fair value due to the relatively short maturity of the respective instruments.Use of Estimates - The preparation of the consolidated financial statements in conformity with GAAP 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 period. Actual results could differ from those estimates. Stock-Based Compensation - The Company accounts for stock-based compensation under the provisions of FASB ASC 718. The Company records compensation expense for employee stock options based on the estimated fair value of the options on the date of grant using the Black-Scholes-Merton option pricing formula. The Company records compensation expense for non-employee stock options based on the estimated fair value of the options as of the earlier of (1) the date at which a commitment for performance by the non-employee to earn the stock option is reached or (2) the date at which the non-employee's performance is complete, using the Black-Scholes-Merton option pricing formula. Stock-based compensation cost 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. See Note 16. Net Income Per Common Share - In accordance with FASB ASC 260, net income per common share, on a basic and diluted basis, is presented for all periods. Basic net income per share is computed by dividing net income by the weighted average number of common shares outstanding during each period. Diluted net income per share is computed by dividing net income by the weighted average number of common and dilutive common equivalent shares outstanding. The calculation of common equivalent shares assumes the exercise of dilutive stock options, net of assumed treasury share repurchases at average market prices, as applicable. Concentration of Risk - Certain of the Company's products utilize components (raw materials and/or co-packing services) from a limited number of sources. A disruption in the supply of such components could significantly affect the Company's revenues from those products, as alternative sources of such components may not be available at commercially reasonable rates or within a reasonably short time period. The Company continues to endeavor to secure the availability of alternative sources for such components and minimize the risk of any disruption in production. The Coca-Cola Company ("TCCC"), through certain wholly-owned subsidiaries (the "TCCC Subsidiaries"), accounted for approximately 3%, 2% and 2% of the Company's net sales for the years ended December 31, 2024, 2023 and 2022, respectively. Coca-Cola Europacific Partners accounted for approximately 14%, 13% and 13% of the Company's net sales for the years ended December 31, 2024, 2023 and 2022, respectively. Coca-Cola Consolidated, Inc. accounted for approximately 10%, 10% and 11% of the Company's net sales for the years ended December 31, 2024, 2023 and 2022, respectively. Reyes Holdings, LLC accounted for approximately 9% of the Company's net sales for the years ended December 31, 2024, 2023 and 2022. Credit Risk - The Company sells its products nationally and internationally, primarily to bottlers and full service beverage distributors ("bottlers/distributors"), 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 performs ongoing credit evaluations of its customers and generally does not require collateral. The Company maintains reserves for estimated credit losses, and historically, such losses have been within management's expectations. Fair Value of Financial Instruments - The carrying value of the Company's financial instruments, including cash and cash equivalents, accounts receivable, accounts payable and accrued liabilities, approximate fair value due to the relatively short maturity of the respective instruments. Use of Estimates - The preparation of the consolidated financial statements in conformity with GAAP 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 period. Actual results could differ from those estimates. 87 87 Table of ContentsMONSTER BEVERAGE CORPORATION AND SUBSIDIARIESNOTES TO CONSOLIDATED FINANCIAL STATEMENTS(Tabular Dollars in Thousands, Except Per Share Amounts)​Recent Accounting Pronouncements - In November 2023, the FASB issued Accounting Standards Update ("ASU") 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 2023-07 are effective for fiscal years beginning after December 15, 2023. The Company adopted ASU 2023-07 on January 1, 2024, which did not have a material impact on the Company's financial position, results of operations and liquidity.In December 2023, the FASB issued ASU 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 2023-09 are effective for fiscal years beginning after December 15, 2024. Early adoption is permitted. The Company is currently evaluating the impact ASU 2023-09 will have on its consolidated financial statements.In November 2024, the FASB issued ASU 2024-03, Disaggregation of Income Statement Expenses. The amendments in this update require the Company to disaggregate key expense categories such as purchases of inventory, employee compensation, depreciation and intangible asset amortization within its financial statements. The amendments in ASU 2024-03 are effective for fiscal years beginning after December 15, 2026. Early adoption is permitted. The Company is currently evaluating the impact ASU 2024-03 will have on its consolidated financial statements.2.ACQUISITION On July 31, 2023, a subsidiary of the Company, Blast Asset Acquisition LLC, completed its acquisition of substantially all of the assets of Vital Pharmaceuticals, Inc. and certain of its affiliates (collectively, "Bang Energy") (the "Bang Transaction"). The acquired assets primarily include the Bang Energy® drinks business and a beverage production facility in Phoenix, AZ. The Company accounted for the Bang Transaction in accordance with FASB ASC 805.In accordance with Regulation S-X, pro forma unaudited condensed financial information for the Bang Transaction has not been provided as the impact of the transaction on the Company's financial position, results of operations and liquidity was not material.​3.REVENUE RECOGNITIONRevenues are accounted for in accordance with FASB 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 and Bang Energy® drinks, (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, FMBs and hard seltzers 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/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.88 Table of ContentsMONSTER BEVERAGE CORPORATION AND SUBSIDIARIESNOTES TO CONSOLIDATED FINANCIAL STATEMENTS(Tabular Dollars in Thousands, Except Per Share Amounts)​ Table of Contents Table of Contents --- ## Modified: Gross Profit **Key changes:** - Reworded sentence: "Gross profit was $4.05 billion for the year ended December 31, 2024, an increase of approximately $254.7 million, or 6.7% higher than the gross profit of $3.79 billion for the year ended December 31, 2023." **Prior (2024):** Gross profit was $3.79 billion for the year ended December 31, 2023, an increase of approximately $619.6 million, or 19.5% higher than the gross profit of $3.17 billion for the year ended December 31, 2022. ​ Gross profit as a percentage of net sales increased to 53.1% for the year ended December 31, 2023 from 50.3% for the year ended December 31, 2022. The increase for the year ended December 31, 2023 was primarily the result of the Pricing Actions, decreased freight-in costs as well as decreased aluminum can costs. **Current (2025):** Gross profit was $4.05 billion for the year ended December 31, 2024, an increase of approximately $254.7 million, or 6.7% higher than the gross profit of $3.79 billion for the year ended December 31, 2023. The increase in gross profit was primarily the result of the increase in net sales. Gross profit as a percentage of net sales increased to 54.0% for the year ended December 31, 2024 from 53.1% for the year ended December 31, 2023. The increase for the year ended December 31, 2024 was primarily the result of the Pricing Actions, decreased freight-in costs and decreased aluminum can costs, partially offset by production inefficiencies. --- ## Modified: (Tabular Dollars in Thousands, Except Per Share Amounts) **Key changes:** - Reworded sentence: "​ Amounts received pursuant to new and/or amended distribution agreements entered into with certain bottlers/distributors relating to the costs associated with terminating the Company's prior distributors, are accounted for as deferred revenue and recognized as revenue ratably over the anticipated life of the respective distribution agreements, generally over 20 years.The Company also enters into license agreements that generate revenues associated with third-party sales of non-beverage products bearing the Company's trademarks including, but not limited to, clothing, hats, t-shirts, jackets, helmets and automotive wheels.Management believes that adequate provision has been made for cash discounts, returns and spoilage based on the Company's historical experience.Disaggregation of RevenueThe following table disaggregates the Company's revenue by geographical markets and reportable segments:​​​​​​​​​​​​​​​​​​​Year Ended December 31, 2024​​​​​​​​​​​Latin​​​​​​​​​​​Asia Pacific​America​​​​​U.S." - Reworded sentence: "and​​​​(including​and​​​Net Sales Canada EMEA1 Oceania) Caribbean TotalMonster Energy® Drinks​$ 3,806,351​$ 1,105,302​$ 426,800​$ 494,758​$ 5,833,211Strategic Brands​ 184,844​ 123,440​ 29,386​ 15,820​ 353,490Alcohol Brands2​​ 101,405​​ - ​​ - ​​ - ​​ 101,405Other​ 22,944​ - ​ - ​ - ​ 22,944Total Net Sales​$ 4,115,544​$ 1,228,742​$ 456,186​$ 510,578​$ 6,311,050​1Europe, Middle East and Africa ("EMEA")2Effectively from February 17, 2022 to December 31, 2022 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 RevenueThe following table disaggregates the Company's revenue by geographical markets and reportable segments:​​​​​​​​​​​​​​​​​​​Year Ended December 31, 2024​​​​​​​​​​​Latin​​​​​​​​​​​Asia Pacific​America​​​​​U.S." - Reworded sentence: "Disaggregation of Revenue The following table disaggregates the Company's revenue by geographical markets and reportable segments: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Year Ended December 31, 2024 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Latin ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Asia Pacific ​ America ​ ​ ​ ​ ​ U.S." - Reworded sentence: "and ​ ​ ​ ​ (including ​ and ​ ​ ​ Net Sales Canada EMEA1 Oceania) Caribbean Total Monster Energy® Drinks ​ $ 3,806,351 ​ $ 1,105,302 ​ $ 426,800 ​ $ 494,758 ​ $ 5,833,211 Strategic Brands ​ 184,844 ​ 123,440 ​ 29,386 ​ 15,820 ​ 353,490 Alcohol Brands2 ​ ​ 101,405 ​ ​ - ​ ​ - ​ ​ - ​ ​ 101,405 Other ​ 22,944 ​ - ​ - ​ - ​ 22,944 Total Net Sales ​ $ 4,115,544 ​ $ 1,228,742 ​ $ 456,186 ​ $ 510,578 ​ $ 6,311,050 ​ 1Europe, Middle East and Africa ("EMEA") 2Effectively from February 17, 2022 to December 31, 2022 90 90 Table of ContentsMONSTER BEVERAGE CORPORATION AND SUBSIDIARIESNOTES TO CONSOLIDATED FINANCIAL STATEMENTS(Tabular Dollars in Thousands, Except Per Share Amounts)​Contract LiabilitiesAmounts 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." - Reworded sentence: "The Company's leases have remaining lease terms of less than one year to nine 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 for the years ended December 31, 2024, 2023 and 2022 were as follows:​​​​​​​​​​​​ 2024 2023 2022Operating lease cost $15,796​$ 12,060 $ 8,641Short-term lease cost​​8,940​ 5,545​ 3,705Variable lease cost​​885​ 861​ 773​​​​​​​​​​Finance leases:​​​​ ​​ ​Amortization of right-of-use assets​​1,874​ 1,259​ 545Interest on lease liabilities​​227​ 255​ 24Finance lease cost​​2,101​ 1,514​ 569​​​​​​​​​​Total lease cost​$27,722​$ 19,980​$ 13,688​Supplemental cash flow information for the years ended December 31, 2024, 2023 and 2022 was as follows:​​​​​​​​​​​​ 2024 2023 2022Cash paid for amounts included in the measurement of lease liabilities:​​ ​​ ​​ Operating cash outflows from operating leases​$14,980​$ 10,634​$ 8,164Operating cash outflows from finance leases​ 227​ 255​ 24Financing cash outflows from finance leases​ 8,223​ 6,346​ 2,091​​​​​​​​​​ROU assets obtained in exchange for lease obligations:​ ​​ ​​ ​Finance leases​ 6,020​ 12,010​ 1,897Operating leases​ 9,651​ 30,342​ 22,962​91 Table of ContentsMONSTER BEVERAGE CORPORATION AND SUBSIDIARIESNOTES TO CONSOLIDATED FINANCIAL STATEMENTS(Tabular Dollars in Thousands, Except Per Share Amounts)​ Table of Contents Table of Contents" **Prior (2024):** ​ 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 RevenueThe following table disaggregates the Company's revenue by geographical markets and reportable segments:​​​​​​​​​​​​​​​​​​​Year Ended December 31, 2023​​​​​​​​​​​Latin​​​​​​​​​​​Asia Pacific​America​​​​​U.S. and​​​​(including​and​​​Net Sales Canada EMEA1 Oceania) Caribbean TotalMonster Energy® Drinks​$ 4,202,537​$ 1,257,471​$ 484,459​$ 610,622​$ 6,555,089Strategic Brands​ 199,183​ 133,188​ 29,990​ 14,228​ 376,589Alcohol Brands​​ 184,855​​ - ​​ - ​​ - ​​ 184,855Other​ 23,494​ - ​ - ​ - ​ 23,494Total Net Sales​$ 4,610,069​$ 1,390,659​$ 514,449​$ 624,850​$ 7,140,027​​​​​​​​​​​​​​​​​​​Year Ended December 31, 2022​​​​​​​​​​​Latin​​​​​​​​​​​Asia Pacific​America​​​​​U.S. and​​​​(including​and​​​Net Sales Canada EMEA1 Oceania) Caribbean TotalMonster Energy® Drinks​$ 3,806,351​$ 1,105,302​$ 426,800​$ 494,758​$ 5,833,211Strategic Brands​ 184,844​ 123,440​ 29,386​ 15,820​ 353,490Alcohol Brands2​​ 101,405​​ - ​​ - ​​ - ​​ 101,405Other​ 22,944​ - ​ - ​ - ​ 22,944Total Net Sales​$ 4,115,544​$ 1,228,742​$ 456,186​$ 510,578​$ 6,311,050​ 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 table disaggregates the Company's revenue by geographical markets and reportable segments: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Year Ended December 31, 2023 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Latin ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Asia Pacific ​ America ​ ​ ​ ​ ​ U.S. and ​ ​ ​ ​ (including ​ and ​ ​ ​ Net Sales Canada EMEA1 Oceania) Caribbean Total Monster Energy® Drinks ​ $ 4,202,537 ​ $ 1,257,471 ​ $ 484,459 ​ $ 610,622 ​ $ 6,555,089 Strategic Brands ​ 199,183 ​ 133,188 ​ 29,990 ​ 14,228 ​ 376,589 Alcohol Brands ​ ​ 184,855 ​ ​ - ​ ​ - ​ ​ - ​ ​ 184,855 Other ​ 23,494 ​ - ​ - ​ - ​ 23,494 Total Net Sales ​ $ 4,610,069 ​ $ 1,390,659 ​ $ 514,449 ​ $ 624,850 ​ $ 7,140,027 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Year Ended December 31, 2022 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Latin ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Asia Pacific ​ America ​ ​ ​ ​ ​ U.S. and ​ ​ ​ ​ (including ​ and ​ ​ ​ Net Sales Canada EMEA1 Oceania) Caribbean Total Monster Energy® Drinks ​ $ 3,806,351 ​ $ 1,105,302 ​ $ 426,800 ​ $ 494,758 ​ $ 5,833,211 Strategic Brands ​ 184,844 ​ 123,440 ​ 29,386 ​ 15,820 ​ 353,490 Alcohol Brands2 ​ ​ 101,405 ​ ​ - ​ ​ - ​ ​ - ​ ​ 101,405 Other ​ 22,944 ​ - ​ - ​ - ​ 22,944 Total Net Sales ​ $ 4,115,544 ​ $ 1,228,742 ​ $ 456,186 ​ $ 510,578 ​ $ 6,311,050 ​ 97 97 Table of ContentsMONSTER BEVERAGE CORPORATION AND SUBSIDIARIESNOTES TO CONSOLIDATED FINANCIAL STATEMENTS(Tabular Dollars in Thousands, Except Per Share Amounts)​​​​​​​​​​​​​​​​​​​Year Ended December 31, 2021​​​​​​​​​​​Latin​​​​​​​​​​​Asia Pacific​America​​​​​U.S. and​​​​(including​and​​​Net Sales Canada EMEA1 Oceania) Caribbean TotalMonster Energy® Drinks​$ 3,455,704​$ 1,004,005​$ 446,023​$ 314,941​$ 5,220,673Strategic Brands​ 158,390​ 99,423​ 26,811​ 10,138​ 294,762Other​ 25,917​ - ​ - ​ - ​ 25,917Total Net Sales​$ 3,640,011​$ 1,103,428​$ 472,834​$ 325,079​$ 5,541,352​1Europe, Middle East and Africa ("EMEA")2Effectively from February 17, 2022 to December 31, 2022Contract LiabilitiesAmounts 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 December 31, 2023 and 2022, the Company had $246.2 million and $267.1 million of deferred revenue, respectively, which is included in current and long-term deferred revenue in the Company's accompanying consolidated balance sheet. During the years ended December 31, 2023, 2022 and 2021, $40.0 million, $40.0 million and $41.5 million, respectively, of deferred revenue, was recognized in net sales. See Note 11.​4. LEASESThe 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 FASB ASC 842. 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 for the years ended December 31, 2023, 2022 and 2021 were as follows:​​​​​​​​​​​​ 2023 2022 2021Operating lease cost $ 12,060​$ 8,641 $ 4,614Short-term lease cost​​ 5,545​ 3,705​ 5,218Variable lease cost​​ 861​ 773​ 710​​​​​​​​​​Finance leases:​​​​ ​​ ​Amortization of right-of-use assets​​ 1,259​ 545​ 546Interest on lease liabilities​​ 255​ 24​ 19Finance lease cost​​ 1,514​ 569​ 565​​​​​​​​​​Total lease cost​$ 19,980​$ 13,688​$ 11,107​98 Table of ContentsMONSTER BEVERAGE CORPORATION AND SUBSIDIARIESNOTES TO CONSOLIDATED FINANCIAL STATEMENTS(Tabular Dollars in Thousands, Except Per Share Amounts)​ Table of Contents Table of Contents **Current (2025):** ​ 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 RevenueThe following table disaggregates the Company's revenue by geographical markets and reportable segments:​​​​​​​​​​​​​​​​​​​Year Ended December 31, 2024​​​​​​​​​​​Latin​​​​​​​​​​​Asia Pacific​America​​​​​U.S. and​​​​(including​and​​​Net Sales Canada EMEA1 Oceania) Caribbean TotalMonster Energy® Drinks​$ 4,320,026​$ 1,399,461​$ 500,145​$ 644,965​$ 6,864,597Strategic Brands​ 205,948​ 163,905​ 40,891​ 21,489​ 432,233Alcohol Brands​​ 172,313​​ - ​​ - ​​ - ​​ 172,313Other​ 23,566​ - ​ - ​ - ​ 23,566Total Net Sales​$ 4,721,853​$ 1,563,366​$ 541,036​$ 666,454​$ 7,492,709​​​​​​​​​​​​​​​​​​​Year Ended December 31, 2023​​​​​​​​​​​Latin​​​​​​​​​​​Asia Pacific​America​​​​​U.S. and​​​​(including​and​​​Net Sales Canada EMEA1 Oceania) Caribbean TotalMonster Energy® Drinks​$ 4,202,537​$ 1,257,471​$ 484,459​$ 610,622​$ 6,555,089Strategic Brands​ 199,183​ 133,188​ 29,990​ 14,228​ 376,589Alcohol Brands​​ 184,855​​ - ​​ - ​​ - ​​ 184,855Other​ 23,494​ - ​ - ​ - ​ 23,494Total Net Sales​$ 4,610,069​$ 1,390,659​$ 514,449​$ 624,850​$ 7,140,027​​​​​​​​​​​​​​​​​​​Year Ended December 31, 2022​​​​​​​​​​​Latin​​​​​​​​​​​Asia Pacific​America​​​​​U.S. and​​​​(including​and​​​Net Sales Canada EMEA1 Oceania) Caribbean TotalMonster Energy® Drinks​$ 3,806,351​$ 1,105,302​$ 426,800​$ 494,758​$ 5,833,211Strategic Brands​ 184,844​ 123,440​ 29,386​ 15,820​ 353,490Alcohol Brands2​​ 101,405​​ - ​​ - ​​ - ​​ 101,405Other​ 22,944​ - ​ - ​ - ​ 22,944Total Net Sales​$ 4,115,544​$ 1,228,742​$ 456,186​$ 510,578​$ 6,311,050​1Europe, Middle East and Africa ("EMEA")2Effectively from February 17, 2022 to December 31, 2022 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 RevenueThe following table disaggregates the Company's revenue by geographical markets and reportable segments:​​​​​​​​​​​​​​​​​​​Year Ended December 31, 2024​​​​​​​​​​​Latin​​​​​​​​​​​Asia Pacific​America​​​​​U.S. and​​​​(including​and​​​Net Sales Canada EMEA1 Oceania) Caribbean TotalMonster Energy® Drinks​$ 4,320,026​$ 1,399,461​$ 500,145​$ 644,965​$ 6,864,597Strategic Brands​ 205,948​ 163,905​ 40,891​ 21,489​ 432,233Alcohol Brands​​ 172,313​​ - ​​ - ​​ - ​​ 172,313Other​ 23,566​ - ​ - ​ - ​ 23,566Total Net Sales​$ 4,721,853​$ 1,563,366​$ 541,036​$ 666,454​$ 7,492,709​​​​​​​​​​​​​​​​​​​Year Ended December 31, 2023​​​​​​​​​​​Latin​​​​​​​​​​​Asia Pacific​America​​​​​U.S. and​​​​(including​and​​​Net Sales Canada EMEA1 Oceania) Caribbean TotalMonster Energy® Drinks​$ 4,202,537​$ 1,257,471​$ 484,459​$ 610,622​$ 6,555,089Strategic Brands​ 199,183​ 133,188​ 29,990​ 14,228​ 376,589Alcohol Brands​​ 184,855​​ - ​​ - ​​ - ​​ 184,855Other​ 23,494​ - ​ - ​ - ​ 23,494Total Net Sales​$ 4,610,069​$ 1,390,659​$ 514,449​$ 624,850​$ 7,140,027​​​​​​​​​​​​​​​​​​​Year Ended December 31, 2022​​​​​​​​​​​Latin​​​​​​​​​​​Asia Pacific​America​​​​​U.S. and​​​​(including​and​​​Net Sales Canada EMEA1 Oceania) Caribbean TotalMonster Energy® Drinks​$ 3,806,351​$ 1,105,302​$ 426,800​$ 494,758​$ 5,833,211Strategic Brands​ 184,844​ 123,440​ 29,386​ 15,820​ 353,490Alcohol Brands2​​ 101,405​​ - ​​ - ​​ - ​​ 101,405Other​ 22,944​ - ​ - ​ - ​ 22,944Total Net Sales​$ 4,115,544​$ 1,228,742​$ 456,186​$ 510,578​$ 6,311,050​1Europe, Middle East and Africa ("EMEA")2Effectively from February 17, 2022 to December 31, 2022 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 table disaggregates the Company's revenue by geographical markets and reportable segments: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Year Ended December 31, 2024 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Latin ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Asia Pacific ​ America ​ ​ ​ ​ ​ U.S. and ​ ​ ​ ​ (including ​ and ​ ​ ​ Net Sales Canada EMEA1 Oceania) Caribbean Total Monster Energy® Drinks ​ $ 4,320,026 ​ $ 1,399,461 ​ $ 500,145 ​ $ 644,965 ​ $ 6,864,597 Strategic Brands ​ 205,948 ​ 163,905 ​ 40,891 ​ 21,489 ​ 432,233 Alcohol Brands ​ ​ 172,313 ​ ​ - ​ ​ - ​ ​ - ​ ​ 172,313 Other ​ 23,566 ​ - ​ - ​ - ​ 23,566 Total Net Sales ​ $ 4,721,853 ​ $ 1,563,366 ​ $ 541,036 ​ $ 666,454 ​ $ 7,492,709 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Year Ended December 31, 2023 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Latin ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Asia Pacific ​ America ​ ​ ​ ​ ​ U.S. and ​ ​ ​ ​ (including ​ and ​ ​ ​ Net Sales Canada EMEA1 Oceania) Caribbean Total Monster Energy® Drinks ​ $ 4,202,537 ​ $ 1,257,471 ​ $ 484,459 ​ $ 610,622 ​ $ 6,555,089 Strategic Brands ​ 199,183 ​ 133,188 ​ 29,990 ​ 14,228 ​ 376,589 Alcohol Brands ​ ​ 184,855 ​ ​ - ​ ​ - ​ ​ - ​ ​ 184,855 Other ​ 23,494 ​ - ​ - ​ - ​ 23,494 Total Net Sales ​ $ 4,610,069 ​ $ 1,390,659 ​ $ 514,449 ​ $ 624,850 ​ $ 7,140,027 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Year Ended December 31, 2022 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Latin ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Asia Pacific ​ America ​ ​ ​ ​ ​ U.S. and ​ ​ ​ ​ (including ​ and ​ ​ ​ Net Sales Canada EMEA1 Oceania) Caribbean Total Monster Energy® Drinks ​ $ 3,806,351 ​ $ 1,105,302 ​ $ 426,800 ​ $ 494,758 ​ $ 5,833,211 Strategic Brands ​ 184,844 ​ 123,440 ​ 29,386 ​ 15,820 ​ 353,490 Alcohol Brands2 ​ ​ 101,405 ​ ​ - ​ ​ - ​ ​ - ​ ​ 101,405 Other ​ 22,944 ​ - ​ - ​ - ​ 22,944 Total Net Sales ​ $ 4,115,544 ​ $ 1,228,742 ​ $ 456,186 ​ $ 510,578 ​ $ 6,311,050 ​ 1Europe, Middle East and Africa ("EMEA") 2Effectively from February 17, 2022 to December 31, 2022 90 90 Table of ContentsMONSTER BEVERAGE CORPORATION AND SUBSIDIARIESNOTES TO CONSOLIDATED FINANCIAL STATEMENTS(Tabular Dollars in Thousands, Except Per Share Amounts)​Contract LiabilitiesAmounts 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 December 31, 2024 and 2023, the Company had $224.8 million and $246.2 million of deferred revenue, respectively, which is included in current and long-term deferred revenue in the Company's accompanying consolidated balance sheet. During the years ended December 31, 2024, 2023 and 2022, $39.9 million, $40.0 million and $40.0 million, respectively, of deferred revenue, was recognized in net sales. See Note 11.​4.LEASESThe 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 FASB ASC 842. The Company's leases have remaining lease terms of less than one year to nine 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 for the years ended December 31, 2024, 2023 and 2022 were as follows:​​​​​​​​​​​​ 2024 2023 2022Operating lease cost $15,796​$ 12,060 $ 8,641Short-term lease cost​​8,940​ 5,545​ 3,705Variable lease cost​​885​ 861​ 773​​​​​​​​​​Finance leases:​​​​ ​​ ​Amortization of right-of-use assets​​1,874​ 1,259​ 545Interest on lease liabilities​​227​ 255​ 24Finance lease cost​​2,101​ 1,514​ 569​​​​​​​​​​Total lease cost​$27,722​$ 19,980​$ 13,688​Supplemental cash flow information for the years ended December 31, 2024, 2023 and 2022 was as follows:​​​​​​​​​​​​ 2024 2023 2022Cash paid for amounts included in the measurement of lease liabilities:​​ ​​ ​​ Operating cash outflows from operating leases​$14,980​$ 10,634​$ 8,164Operating cash outflows from finance leases​ 227​ 255​ 24Financing cash outflows from finance leases​ 8,223​ 6,346​ 2,091​​​​​​​​​​ROU assets obtained in exchange for lease obligations:​ ​​ ​​ ​Finance leases​ 6,020​ 12,010​ 1,897Operating leases​ 9,651​ 30,342​ 22,962​91 Table of ContentsMONSTER BEVERAGE CORPORATION AND SUBSIDIARIESNOTES TO CONSOLIDATED FINANCIAL STATEMENTS(Tabular Dollars in Thousands, Except Per Share Amounts)​ Table of Contents Table of Contents --- ## Modified: Opinion on the Financial Statements **Key changes:** - Reworded sentence: "We have audited, before the effects of the adjustments to retrospectively apply the stock split and segment disclosures required by Accounting Standards Update 2023-07, Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosures (ASU 2023-07), as discussed in Note 1 to the consolidated financial statements, the consolidated statements of income, comprehensive income, stockholders' equity, and cash flows of Monster Beverage Corporation and subsidiaries (the "Company") for the year ended December 31, 2022, and the related notes and the schedule listed in the Index at Item 15(a) (collectively referred to as the "financial statements") (the 2022 financial statements before the effects of the retrospective adjustments discussed in Note 1 to the financial statements are not presented herein)." **Prior (2024):** We have audited, before the effects of the adjustments to retrospectively apply the stock split discussed in Note 1 to the consolidated financial statements, the consolidated balance sheet of Monster Beverage Corporation and subsidiaries (the "Company") as of December 31, 2022, the related consolidated statements of income, comprehensive income, stockholders' equity, and cash flows, for the years ended December 31, 2022 and 2021, and the related notes and the schedule listed in the Index at Item 15(a) (collectively referred to as the "financial statements") (the 2022 and 2021 financial statements before the effects of the retrospective adjustments discussed in Note 1 to the financial statements are not presented herein). In our opinion, the 2022 and 2021 financial statements, before the effects of the adjustments to retrospectively apply the stock split discussed in Note 1 to the financial statements, present fairly, in all material respects, the financial position of the Company as of December 31, 2022, and the results of its operations and its cash flows for the years ended December 31, 2022 and 2021, in conformity with accounting principles generally accepted in the United States of America. We were not engaged to audit, review, or apply any procedures to the adjustments to retrospectively apply the stock split discussed in Note 1 to the financial statements, and accordingly, we do not express an opinion or any other form of assurance about whether such retrospective adjustments are appropriate and have been properly applied. Those retrospective adjustments were audited by other auditors. **Current (2025):** We have audited, before the effects of the adjustments to retrospectively apply the stock split and segment disclosures required by Accounting Standards Update 2023-07, Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosures (ASU 2023-07), as discussed in Note 1 to the consolidated financial statements, the consolidated statements of income, comprehensive income, stockholders' equity, and cash flows of Monster Beverage Corporation and subsidiaries (the "Company") for the year ended December 31, 2022, and the related notes and the schedule listed in the Index at Item 15(a) (collectively referred to as the "financial statements") (the 2022 financial statements before the effects of the retrospective adjustments discussed in Note 1 to the financial statements are not presented herein). In our opinion, the 2022 financial statements, before the effects of the adjustments to retrospectively apply the stock split and segment disclosures required by ASU 2023-07 discussed in Note 1 to the financial statements, present fairly, in all material respects, the results of the Company's operations and its cash flows for the year ended December 31, 2022, in conformity with accounting principles generally accepted in the United States of America. --- ## Modified: Balance, January 1, 2022 **Key changes:** - Reworded sentence: "1,280,086 $ 6,400 $ 4,649,420 $ 7,809,549 $ (69,165) (221,440) $ (5,829,253) $ 6,566,951 Stock-based compensation - ​ ​ - ​ ​ 63,387 ​ ​ - ​ ​ - ​ - ​ ​ - ​ ​ 63,387 Stock options/awards 3,602 ​ ​ 18 ​ ​ 63,997 ​ ​ - ​ ​ - ​ - ​ ​ - ​ ​ 64,015 Unrealized gain (loss), net on available-for-sale securities - ​ - ​ - ​ - ​ (4,887) - ​ - ​ (4,887) Repurchase of common stock - ​ ​ - ​ ​ - ​ ​ - ​ ​ - ​ (17,648) ​ ​ (771,028) ​ ​ (771,028) Foreign currency translation - ​ ​ - ​ ​ - ​ ​ - ​ ​ (85,021) ​ - ​ ​ - ​ ​ (85,021) Net income - ​ ​ - ​ ​ - ​ ​ 1,191,624 ​ ​ - ​ - ​ ​ - ​ ​ 1,191,624" **Prior (2024):** ​ 1,280,086 ​ $ 6,400 ​ $ 4,649,420 ​ $ 7,809,549 ​ $ (69,165) ​ (221,440) ​ $ (5,829,253) ​ $ 6,566,951 Stock-based compensation - ​ ​ - ​ ​ 63,387 ​ ​ - ​ ​ - ​ - ​ ​ - ​ ​ 63,387 Stock options/awards 3,602 ​ ​ 18 ​ ​ 63,997 ​ ​ - ​ ​ - ​ - ​ ​ - ​ ​ 64,015 Unrealized gain (loss), net on available-for-sale securities - ​ ​ - ​ ​ - ​ ​ - ​ ​ (4,887) ​ - ​ ​ - ​ ​ (4,887) Repurchase of common stock - ​ ​ - ​ ​ - ​ ​ - ​ ​ - ​ (17,648) ​ ​ (771,028) ​ ​ (771,028) Foreign currency translation - ​ ​ - ​ ​ - ​ ​ - ​ ​ (85,021) ​ - ​ ​ - ​ ​ (85,021) Net income - ​ ​ - ​ ​ - ​ ​ 1,191,624 ​ ​ - ​ - ​ ​ - ​ ​ 1,191,624 **Current (2025):** 1,280,086 $ 6,400 $ 4,649,420 $ 7,809,549 $ (69,165) (221,440) $ (5,829,253) $ 6,566,951 Stock-based compensation - ​ ​ - ​ ​ 63,387 ​ ​ - ​ ​ - ​ - ​ ​ - ​ ​ 63,387 Stock options/awards 3,602 ​ ​ 18 ​ ​ 63,997 ​ ​ - ​ ​ - ​ - ​ ​ - ​ ​ 64,015 Unrealized gain (loss), net on available-for-sale securities - ​ - ​ - ​ - ​ (4,887) - ​ - ​ (4,887) Repurchase of common stock - ​ ​ - ​ ​ - ​ ​ - ​ ​ - ​ (17,648) ​ ​ (771,028) ​ ​ (771,028) Foreign currency translation - ​ ​ - ​ ​ - ​ ​ - ​ ​ (85,021) ​ - ​ ​ - ​ ​ (85,021) Net income - ​ ​ - ​ ​ - ​ ​ 1,191,624 ​ ​ - ​ - ​ ​ - ​ ​ 1,191,624 --- ## Modified: (Tabular Dollars in Thousands, Except Per Share Amounts) **Key changes:** - Reworded sentence: "​ Contract LiabilitiesAmounts 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." - Reworded sentence: "The Company's leases have remaining lease terms of less than one year to nine 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 for the years ended December 31, 2024, 2023 and 2022 were as follows:​​​​​​​​​​​​ 2024 2023 2022Operating lease cost $15,796​$ 12,060 $ 8,641Short-term lease cost​​8,940​ 5,545​ 3,705Variable lease cost​​885​ 861​ 773​​​​​​​​​​Finance leases:​​​​ ​​ ​Amortization of right-of-use assets​​1,874​ 1,259​ 545Interest on lease liabilities​​227​ 255​ 24Finance lease cost​​2,101​ 1,514​ 569​​​​​​​​​​Total lease cost​$27,722​$ 19,980​$ 13,688​Supplemental cash flow information for the years ended December 31, 2024, 2023 and 2022 was as follows:​​​​​​​​​​​​ 2024 2023 2022Cash paid for amounts included in the measurement of lease liabilities:​​ ​​ ​​ Operating cash outflows from operating leases​$14,980​$ 10,634​$ 8,164Operating cash outflows from finance leases​ 227​ 255​ 24Financing cash outflows from finance leases​ 8,223​ 6,346​ 2,091​​​​​​​​​​ROU assets obtained in exchange for lease obligations:​ ​​ ​​ ​Finance leases​ 6,020​ 12,010​ 1,897Operating leases​ 9,651​ 30,342​ 22,962​ Contract LiabilitiesAmounts 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." - Reworded sentence: "The Company's leases have remaining lease terms of less than one year to nine 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 for the years ended December 31, 2024, 2023 and 2022 were as follows:​​​​​​​​​​​​ 2024 2023 2022Operating lease cost $15,796​$ 12,060 $ 8,641Short-term lease cost​​8,940​ 5,545​ 3,705Variable lease cost​​885​ 861​ 773​​​​​​​​​​Finance leases:​​​​ ​​ ​Amortization of right-of-use assets​​1,874​ 1,259​ 545Interest on lease liabilities​​227​ 255​ 24Finance lease cost​​2,101​ 1,514​ 569​​​​​​​​​​Total lease cost​$27,722​$ 19,980​$ 13,688​Supplemental cash flow information for the years ended December 31, 2024, 2023 and 2022 was as follows:​​​​​​​​​​​​ 2024 2023 2022Cash paid for amounts included in the measurement of lease liabilities:​​ ​​ ​​ Operating cash outflows from operating leases​$14,980​$ 10,634​$ 8,164Operating cash outflows from finance leases​ 227​ 255​ 24Financing cash outflows from finance leases​ 8,223​ 6,346​ 2,091​​​​​​​​​​ROU assets obtained in exchange for lease obligations:​ ​​ ​​ ​Finance leases​ 6,020​ 12,010​ 1,897Operating leases​ 9,651​ 30,342​ 22,962​ 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." **Prior (2024):** ​ ​​​​​​​​​​​​​​​​​​Year Ended December 31, 2021​​​​​​​​​​​Latin​​​​​​​​​​​Asia Pacific​America​​​​​U.S. and​​​​(including​and​​​Net Sales Canada EMEA1 Oceania) Caribbean TotalMonster Energy® Drinks​$ 3,455,704​$ 1,004,005​$ 446,023​$ 314,941​$ 5,220,673Strategic Brands​ 158,390​ 99,423​ 26,811​ 10,138​ 294,762Other​ 25,917​ - ​ - ​ - ​ 25,917Total Net Sales​$ 3,640,011​$ 1,103,428​$ 472,834​$ 325,079​$ 5,541,352​1Europe, Middle East and Africa ("EMEA")2Effectively from February 17, 2022 to December 31, 2022Contract LiabilitiesAmounts 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 December 31, 2023 and 2022, the Company had $246.2 million and $267.1 million of deferred revenue, respectively, which is included in current and long-term deferred revenue in the Company's accompanying consolidated balance sheet. During the years ended December 31, 2023, 2022 and 2021, $40.0 million, $40.0 million and $41.5 million, respectively, of deferred revenue, was recognized in net sales. See Note 11.​4. LEASESThe 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 FASB ASC 842. 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 for the years ended December 31, 2023, 2022 and 2021 were as follows:​​​​​​​​​​​​ 2023 2022 2021Operating lease cost $ 12,060​$ 8,641 $ 4,614Short-term lease cost​​ 5,545​ 3,705​ 5,218Variable lease cost​​ 861​ 773​ 710​​​​​​​​​​Finance leases:​​​​ ​​ ​Amortization of right-of-use assets​​ 1,259​ 545​ 546Interest on lease liabilities​​ 255​ 24​ 19Finance lease cost​​ 1,514​ 569​ 565​​​​​​​​​​Total lease cost​$ 19,980​$ 13,688​$ 11,107​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Year Ended December 31, 2021 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Latin ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Asia Pacific ​ America ​ ​ ​ ​ ​ U.S. and ​ ​ ​ ​ (including ​ and ​ ​ ​ Net Sales Canada EMEA1 Oceania) Caribbean Total Monster Energy® Drinks ​ $ 3,455,704 ​ $ 1,004,005 ​ $ 446,023 ​ $ 314,941 ​ $ 5,220,673 Strategic Brands ​ 158,390 ​ 99,423 ​ 26,811 ​ 10,138 ​ 294,762 Other ​ 25,917 ​ - ​ - ​ - ​ 25,917 Total Net Sales ​ $ 3,640,011 ​ $ 1,103,428 ​ $ 472,834 ​ $ 325,079 ​ $ 5,541,352 ​ 1Europe, Middle East and Africa ("EMEA") 2Effectively from February 17, 2022 to December 31, 2022 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 December 31, 2023 and 2022, the Company had $246.2 million and $267.1 million of deferred revenue, respectively, which is included in current and long-term deferred revenue in the Company's accompanying consolidated balance sheet. During the years ended December 31, 2023, 2022 and 2021, $40.0 million, $40.0 million and $41.5 million, respectively, of deferred revenue, was recognized in net sales. See Note 11. ​ 4. 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 FASB ASC 842. 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. some which leases leases The components of lease cost for the years ended December 31, 2023, 2022 and 2021 were as follows: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ 2023 2022 2021 Operating lease cost $ 12,060 ​ $ 8,641 $ 4,614 Short-term lease cost ​ ​ 5,545 ​ 3,705 ​ 5,218 Variable lease cost ​ ​ 861 ​ 773 ​ 710 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Finance leases: ​ ​ ​ ​ ​ ​ ​ Amortization of right-of-use assets ​ ​ 1,259 ​ 545 ​ 546 Interest on lease liabilities ​ ​ 255 ​ 24 ​ 19 Finance lease cost ​ ​ 1,514 ​ 569 ​ 565 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Total lease cost ​ $ 19,980 ​ $ 13,688 ​ $ 11,107 ​ 98 98 Table of ContentsMONSTER BEVERAGE CORPORATION AND SUBSIDIARIESNOTES TO CONSOLIDATED FINANCIAL STATEMENTS(Tabular Dollars in Thousands, Except Per Share Amounts)​Supplemental cash flow information related to leases for the years ended December 31, 2023, 2022 and 2021 were as follows:​​ 2023 2022 2021Cash paid for amounts included in the measurement of lease liabilities:​​ ​​ ​​ Operating cash flows from operating leases​$ 10,634​$ 8,164​$ 4,123Operating cash flows from finance leases​ 255​ 24​ 19Financing cash flows from finance leases​ 6,346​ 2,091​ 2,698​​​​​​​​​​ROU assets obtained in exchange for lease obligations:​ ​​ ​​ ​Finance leases​ 12,010​ 1,897​ 2,878Operating leases​ 30,342​ 22,962​ 4,313​Supplemental balance sheet information related to leases was as follows:​​​​​​​​​​​​​​December 31,​December 31,​ Balance Sheet Location​2023 2022Operating leases:​​​​​​​​Right-of-use assets​Other assets​$ 58,845​$ 38,012​​​​​​​​​Current lease liabilities​Accrued liabilities​$ 11,088​$ 7,747Noncurrent lease liabilities​Other liabilities​​ 48,459​​ 29,586Total operating lease liabilities​​​$ 59,547​$ 37,333​​​​​​​​​Finance leases:​​​​​​​​Right-of-use assets​Property and equipment, net​$ 11,147​$ 1,598​​​​​​​​​Current lease liabilities​Accrued liabilities​$ 6,449​$ 757Noncurrent lease liabilities​Other liabilities​​ 19​​ 41Total finance lease liabilities​​​$ 6,468​$ 798​Weighted-average remaining lease term and weighted-average discount rate for the Company's leases were as follows:​​​​​​​​​December 31,​December 31,​​ 2023 2022 Weighted-average remaining lease term in years:​​​​​Operating leases 6.3 6.7​Finance leases​ 0.7​ 0.8​​​​​​​Weighted-average discount rate:​​​​​Operating leases​ 4.7% 3.4%Finance leases 6.3% 3.6%​99 Table of ContentsMONSTER BEVERAGE CORPORATION AND SUBSIDIARIESNOTES TO CONSOLIDATED FINANCIAL STATEMENTS(Tabular Dollars in Thousands, Except Per Share Amounts)​ Table of Contents Table of Contents **Current (2025):** ​ Contract LiabilitiesAmounts 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 December 31, 2024 and 2023, the Company had $224.8 million and $246.2 million of deferred revenue, respectively, which is included in current and long-term deferred revenue in the Company's accompanying consolidated balance sheet. During the years ended December 31, 2024, 2023 and 2022, $39.9 million, $40.0 million and $40.0 million, respectively, of deferred revenue, was recognized in net sales. See Note 11.​4.LEASESThe 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 FASB ASC 842. The Company's leases have remaining lease terms of less than one year to nine 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 for the years ended December 31, 2024, 2023 and 2022 were as follows:​​​​​​​​​​​​ 2024 2023 2022Operating lease cost $15,796​$ 12,060 $ 8,641Short-term lease cost​​8,940​ 5,545​ 3,705Variable lease cost​​885​ 861​ 773​​​​​​​​​​Finance leases:​​​​ ​​ ​Amortization of right-of-use assets​​1,874​ 1,259​ 545Interest on lease liabilities​​227​ 255​ 24Finance lease cost​​2,101​ 1,514​ 569​​​​​​​​​​Total lease cost​$27,722​$ 19,980​$ 13,688​Supplemental cash flow information for the years ended December 31, 2024, 2023 and 2022 was as follows:​​​​​​​​​​​​ 2024 2023 2022Cash paid for amounts included in the measurement of lease liabilities:​​ ​​ ​​ Operating cash outflows from operating leases​$14,980​$ 10,634​$ 8,164Operating cash outflows from finance leases​ 227​ 255​ 24Financing cash outflows from finance leases​ 8,223​ 6,346​ 2,091​​​​​​​​​​ROU assets obtained in exchange for lease obligations:​ ​​ ​​ ​Finance leases​ 6,020​ 12,010​ 1,897Operating leases​ 9,651​ 30,342​ 22,962​ Contract LiabilitiesAmounts 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 December 31, 2024 and 2023, the Company had $224.8 million and $246.2 million of deferred revenue, respectively, which is included in current and long-term deferred revenue in the Company's accompanying consolidated balance sheet. During the years ended December 31, 2024, 2023 and 2022, $39.9 million, $40.0 million and $40.0 million, respectively, of deferred revenue, was recognized in net sales. See Note 11.​4.LEASESThe 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 FASB ASC 842. The Company's leases have remaining lease terms of less than one year to nine 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 for the years ended December 31, 2024, 2023 and 2022 were as follows:​​​​​​​​​​​​ 2024 2023 2022Operating lease cost $15,796​$ 12,060 $ 8,641Short-term lease cost​​8,940​ 5,545​ 3,705Variable lease cost​​885​ 861​ 773​​​​​​​​​​Finance leases:​​​​ ​​ ​Amortization of right-of-use assets​​1,874​ 1,259​ 545Interest on lease liabilities​​227​ 255​ 24Finance lease cost​​2,101​ 1,514​ 569​​​​​​​​​​Total lease cost​$27,722​$ 19,980​$ 13,688​Supplemental cash flow information for the years ended December 31, 2024, 2023 and 2022 was as follows:​​​​​​​​​​​​ 2024 2023 2022Cash paid for amounts included in the measurement of lease liabilities:​​ ​​ ​​ Operating cash outflows from operating leases​$14,980​$ 10,634​$ 8,164Operating cash outflows from finance leases​ 227​ 255​ 24Financing cash outflows from finance leases​ 8,223​ 6,346​ 2,091​​​​​​​​​​ROU assets obtained in exchange for lease obligations:​ ​​ ​​ ​Finance leases​ 6,020​ 12,010​ 1,897Operating leases​ 9,651​ 30,342​ 22,962​ 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 December 31, 2024 and 2023, the Company had $224.8 million and $246.2 million of deferred revenue, respectively, which is included in current and long-term deferred revenue in the Company's accompanying consolidated balance sheet. During the years ended December 31, 2024, 2023 and 2022, $39.9 million, $40.0 million and $40.0 million, respectively, of deferred revenue, was recognized in net sales. See Note 11. ​ 4.LEASES 4. 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 FASB ASC 842. The Company's leases have remaining lease terms of less than one year to nine 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. some which leases leases The components of lease cost for the years ended December 31, 2024, 2023 and 2022 were as follows: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ 2024 2023 2022 Operating lease cost $ 15,796 ​ $ 12,060 $ 8,641 Short-term lease cost ​ ​ 8,940 ​ 5,545 ​ 3,705 Variable lease cost ​ ​ 885 ​ 861 ​ 773 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Finance leases: ​ ​ ​ ​ ​ ​ ​ Amortization of right-of-use assets ​ ​ 1,874 ​ 1,259 ​ 545 Interest on lease liabilities ​ ​ 227 ​ 255 ​ 24 Finance lease cost ​ ​ 2,101 ​ 1,514 ​ 569 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Total lease cost ​ $ 27,722 ​ $ 19,980 ​ $ 13,688 ​ Supplemental cash flow information for the years ended December 31, 2024, 2023 and 2022 was as follows: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ 2024 2023 2022 Cash paid for amounts included in the measurement of lease liabilities: ​ ​ ​ ​ ​ ​ Operating cash outflows from operating leases ​ $ 14,980 ​ $ 10,634 ​ $ 8,164 Operating cash outflows from finance leases ​ 227 ​ 255 ​ 24 Financing cash outflows from finance leases ​ 8,223 ​ 6,346 ​ 2,091 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ROU assets obtained in exchange for lease obligations: ​ ​ ​ ​ ​ ​ Finance leases ​ 6,020 ​ 12,010 ​ 1,897 Operating leases ​ 9,651 ​ 30,342 ​ 22,962 ​ 91 91 Table of ContentsMONSTER BEVERAGE CORPORATION AND SUBSIDIARIESNOTES TO CONSOLIDATED FINANCIAL STATEMENTS(Tabular Dollars in Thousands, Except Per Share Amounts)​Supplemental balance sheet information was as follows:​​​​​​​​​​​​​​December 31,​December 31,​ Balance Sheet Location 2024 2023Operating leases:​​​​​​​​Right-of-use assets​Other assets​$ 55,240​$ 58,845​​​​​​​​​Current lease liabilities​Accrued liabilities​$ 12,530​$ 11,088Noncurrent lease liabilities​Other liabilities​​ 43,857​​ 48,459Total operating lease liabilities​​​$ 56,387​$ 59,547​​​​​​​​​Finance leases:​​​​​​​​Right-of-use assets​Property and equipment, net​$ 6,129​$ 11,147​​​​​​​​​Current lease liabilities​Accrued liabilities​$ 4,211​$ 6,449Noncurrent lease liabilities​Other liabilities​​ 38​​ 19Total finance lease liabilities​​​$ 4,249​$ 6,468​Weighted-average remaining lease term and weighted-average discount rate for the Company's leases were as follows:​​​​​​​​​December 31,​December 31,​​ 2024 2023 Weighted-average remaining lease term in years:​​​​​Operating leases 5.5 6.3​Finance leases​ 0.8​ 0.7​​​​​​​Weighted-average discount rate:​​​​​Operating leases​ 4.8% 4.7%Finance leases 5.5% 6.3%​The following table outlines maturities of the Company's lease liabilities as of December 31, 2024:​​​​​​​​​ Undiscounted Future Lease Payments​​Operating Leases Finance Leases2025​$ 14,868​$ 4,3132026​ 11,514​ 142027​ 10,577​ 112028​​ 8,759​​ 112029​ 6,805​ 62030 and thereafter ​​ 11,851​​ - Total lease payments​ 64,374​ 4,355Less imputed interest​ (7,987)​ (106)Total​$ 56,387​$ 4,249​As of December 31, 2024, the Company did not have any significant leases that had not yet commenced.​92 Table of ContentsMONSTER BEVERAGE CORPORATION AND SUBSIDIARIESNOTES TO CONSOLIDATED FINANCIAL STATEMENTS(Tabular Dollars in Thousands, Except Per Share Amounts)​ Table of Contents Table of Contents --- ## Modified: Operating Expenses **Key changes:** - Reworded sentence: "Total operating expenses were $2.12 billion for the year ended December 31, 2024, an increase of approximately $277.7 million, or 15.1% higher than total operating expenses of $1.84 billion for the year ended December 31, 2023." **Prior (2024):** Operating income was $1.95 billion for the year ended December 31, 2023, an increase of approximately $368.6 million, or 23.3% higher than operating income of $1.58 billion for the year ended December 31, 2022. Operating income as a percentage of net sales increased to 27.4% for the year ended December 31, 2023 from 25.1% for the year ended December 31, 2022. Operating income for the year ended December 31, 2023 increased primarily due to an increase of $619.6 million in gross profit partially offset by an increase in operating expenses of $368.6 million, which includes the Alcohol Impairment Charges. ​ Operating income was $409.3 million and $316.3 million for the years ended December 31, 2023 and 2022, 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 $2.34 billion for the year ended December 31, 2023, an increase of approximately $488.7 million, or 26.4% higher than operating income of $1.85 billion for the year ended December 31, 2022. The increase in operating income for the Monster Energy® Drinks segment was primarily the result of a $572.5 million increase in gross profit. ​ Operating income for the Strategic Brands segment, exclusive of corporate and unallocated expenses, was $207.1 million for the year ended December 31, 2023, an increase of approximately $9.4 million, or 4.8% higher than operating income of $197.7 million for the year ended December 31, 2022. The increase in operating income for the Strategic Brands segment was primarily the result of a $14.6 million increase in gross profit. ​ Operating loss for the Alcohol Brands segment, exclusive of corporate and unallocated expenses, was $81.1 million for the year ended December 31, 2023, an increase of approximately $49.6 million, or 157.5% higher than operating loss of 53 53 Table of Contents$31.5 million for the year ended December 31, 2022 (effectively from February 17, 2022 to December 31, 2022). The increase in the operating loss for the Alcohol Brands segment for the year ended December 31, 2023 was primarily as a result of the Alcohol Impairment Charges of $42.7 million.​Operating income for the Other segment, exclusive of corporate and unallocated expenses, was $3.6 million for the year ended December 31, 2023, an increase of approximately $0.5 million, or 17.3% higher than operating income of $3.0 million for the year ended December 31, 2022.Interest and Other Income (Expense), net​Interest and other income (expense), net, was $115.1 million for the year ended December 31, 2023, as compared to interest and other income (expense), net, of ($12.8) million for the year ended December 31, 2022. Foreign currency transaction gains (losses) were ($60.2) million and ($37.9) million for the years ended December 31, 2023 and 2022, respectively. Interest income was $130.0 million and $29.7 million for the years ended December 31, 2023 and 2022, respectively. Interest and other income (expense), net included a gain on transaction of $45.4 million related to the acquisition of Bang Energy ("Bang Transaction Gain") for the year ended December 31, 2023.Provision for Income Taxes Provision for income taxes was $437.5 million for the year ended December 31, 2023, an increase of $57.2 million, or 15.0% higher than the provision for income taxes of $380.3 million for the year ended December 31, 2022. The effective combined federal, state and foreign tax rate was 21.2% and 24.2% for the years ended December 31, 2023 and 2022, respectively. The decrease in the effective tax rate was primarily attributable to the increase in the stock compensation deduction for the year ended December 31, 2023.Net IncomeNet income was $1.63 billion for the year ended December 31, 2023, an increase of $439.4 million, or 36.9% higher than net income of $1.19 billion for the year ended December 31, 2022. The increase in net income for the year ended December 31, 2023 was primarily due to the increase in gross profit.Key Business MetricsWe 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" below.Non-GAAP Financial Measures and Other Key MetricsGross Billings**Gross billings were $8.23 billion for the year ended December 31, 2023, an increase of approximately $968.1 million, or 13.3% higher than gross billings of $7.26 billion for the year ended December 31, 2022. Net changes in foreign currency exchange rates had an unfavorable impact on gross billings of approximately $149.8 million for the year ended December 31, 2023.​Gross billings for the Monster Energy® Drinks segment were $7.59 billion for the year ended December 31, 2023, an increase of approximately $855.4 million, or 12.7% higher than gross billings of $6.74 billion for the year ended December 31, 2022. 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 price increases in certain markets. Net changes in foreign currency exchange rates had an unfavorable impact on 54 Table of Contents Table of Contents Table of Contents $31.5 million for the year ended December 31, 2022 (effectively from February 17, 2022 to December 31, 2022). The increase in the operating loss for the Alcohol Brands segment for the year ended December 31, 2023 was primarily as a result of the Alcohol Impairment Charges of $42.7 million.​Operating income for the Other segment, exclusive of corporate and unallocated expenses, was $3.6 million for the year ended December 31, 2023, an increase of approximately $0.5 million, or 17.3% higher than operating income of $3.0 million for the year ended December 31, 2022.Interest and Other Income (Expense), net​Interest and other income (expense), net, was $115.1 million for the year ended December 31, 2023, as compared to interest and other income (expense), net, of ($12.8) million for the year ended December 31, 2022. Foreign currency transaction gains (losses) were ($60.2) million and ($37.9) million for the years ended December 31, 2023 and 2022, respectively. Interest income was $130.0 million and $29.7 million for the years ended December 31, 2023 and 2022, respectively. Interest and other income (expense), net included a gain on transaction of $45.4 million related to the acquisition of Bang Energy ("Bang Transaction Gain") for the year ended December 31, 2023.Provision for Income Taxes Provision for income taxes was $437.5 million for the year ended December 31, 2023, an increase of $57.2 million, or 15.0% higher than the provision for income taxes of $380.3 million for the year ended December 31, 2022. The effective combined federal, state and foreign tax rate was 21.2% and 24.2% for the years ended December 31, 2023 and 2022, respectively. The decrease in the effective tax rate was primarily attributable to the increase in the stock compensation deduction for the year ended December 31, 2023.Net IncomeNet income was $1.63 billion for the year ended December 31, 2023, an increase of $439.4 million, or 36.9% higher than net income of $1.19 billion for the year ended December 31, 2022. The increase in net income for the year ended December 31, 2023 was primarily due to the increase in gross profit.Key Business MetricsWe 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" below.Non-GAAP Financial Measures and Other Key MetricsGross Billings**Gross billings were $8.23 billion for the year ended December 31, 2023, an increase of approximately $968.1 million, or 13.3% higher than gross billings of $7.26 billion for the year ended December 31, 2022. Net changes in foreign currency exchange rates had an unfavorable impact on gross billings of approximately $149.8 million for the year ended December 31, 2023.​Gross billings for the Monster Energy® Drinks segment were $7.59 billion for the year ended December 31, 2023, an increase of approximately $855.4 million, or 12.7% higher than gross billings of $6.74 billion for the year ended December 31, 2022. 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 price increases in certain markets. Net changes in foreign currency exchange rates had an unfavorable impact on $31.5 million for the year ended December 31, 2022 (effectively from February 17, 2022 to December 31, 2022). The increase in the operating loss for the Alcohol Brands segment for the year ended December 31, 2023 was primarily as a result of the Alcohol Impairment Charges of $42.7 million. ​ Operating income for the Other segment, exclusive of corporate and unallocated expenses, was $3.6 million for the year ended December 31, 2023, an increase of approximately $0.5 million, or 17.3% higher than operating income of $3.0 million for the year ended December 31, 2022. **Current (2025):** Total operating expenses were $2.12 billion for the year ended December 31, 2024, an increase of approximately $277.7 million, or 15.1% higher than total operating expenses of $1.84 billion for the year ended December 31, 2023. 48 48 Table of ContentsOperating expenses for the year ended December 31, 2024 included impairment charges of $138.8 million related to the Alcohol Brands segment (the "Alcohol Impairment Charges"). The Alcohol Impairment Charges were primarily the result of operating and financial performance not meeting projections due in part to challenges in the category, as well as a decrease in projected ongoing operating and financial performance. The Alcohol Impairment Charges relate primarily to goodwill and to certain other indefinite lived intangible assets as well as property and equipment.Additionally, the increase in operating expenses was primarily due to increased general and administrative expenses of $110.0 million (primarily impairment charges related to the Alcohol Brands segment), increased selling and marketing expenses of $80.5 million (primarily sponsorships and endorsements), increased payroll expenses of $68.7 million and increased distribution expenses (including storage and warehouse) of $18.5 million. Operating expenses as a percentage of net sales for the years ended December 31, 2024 and 2023 were 28.3% and 25.8%, respectively.Operating Income Operating income was $1.93 billion for the year ended December 31, 2024, a decrease of approximately $23.1 million, or 1.2% lower than operating income of $1.95 billion for the year ended December 31, 2023. Operating income as a percentage of net sales decreased to 25.8% for the year ended December 31, 2024 from 27.4% for the year ended December 31, 2023. Operating income for the year ended December 31, 2024 decreased primarily due to the Alcohol Impairment Charges partially offset by an increase in gross profit.Operating income was $536.3 million and $409.3 million for the years ended December 31, 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 $2.46 billion for the year ended December 31, 2024, an increase of approximately $123.7 million, or 5.3% higher than operating income of $2.34 billion for the year ended December 31, 2023. The increase in operating income for the Monster Energy® Drinks segment was primarily the result of a $233.4 million increase in gross profit.Operating income for the Strategic Brands segment, exclusive of corporate and unallocated expenses, was $233.8 million for the year ended December 31, 2024, an increase of approximately $26.6 million, or 12.8% higher than operating income of $207.1 million for the year ended December 31, 2023. The increase in operating income for the Strategic Brands segment was primarily the result of a $35.5 million increase in gross profit.Operating loss for the Alcohol Brands segment, exclusive of corporate and unallocated expenses, was $200.3 million for the year ended December 31, 2024, an increase of approximately $119.2 million, or 146.9% higher than operating loss of $81.1 million for the year ended December 31, 2023. The increase in the operating loss for the Alcohol Brands segment for the year ended December 31, 2024 was primarily the result of the Alcohol Impairment Charges.Operating income for the Other segment, exclusive of corporate and unallocated expenses, was $4.6 million for the year ended December 31, 2024, an increase of approximately $1.1 million, or 30.4% higher than operating income of $3.6 million for the year ended December 31, 2023. The increase in operating income for the year ended December 31, 2024 was primarily the result of the increase in gross profit.Interest and Other Income (Expense), netInterest and other income (expense), net, was $59.2 million for the year ended December 31, 2024, as compared to interest and other income (expense), net, of $115.1 million for the year ended December 31, 2023. Foreign currency transaction gains (losses) were ($26.4) million and ($60.2) million for the years ended December 31, 2024 and 2023, respectively. Interest income was $115.0 million and $130.0 million for the years ended December 31, 2024 and 2023, respectively. The decrease in interest income for the year ended December 31, 2024 was primarily related to lower short- and long-term investment balances as a result of treasury stock repurchases made during the year ended December 31, 2024. Interest expense was $27.9 million and $0.4 million for the years ended December 31, 2024 and 2023, respectively. Interest and other income (expense), net included a gain on transaction of $45.4 million related to the acquisition of Bang Energy ("Bang Transaction Gain") for the year ended December 31, 2023.49 Table of Contents Table of Contents Table of Contents Operating expenses for the year ended December 31, 2024 included impairment charges of $138.8 million related to the Alcohol Brands segment (the "Alcohol Impairment Charges"). The Alcohol Impairment Charges were primarily the result of operating and financial performance not meeting projections due in part to challenges in the category, as well as a decrease in projected ongoing operating and financial performance. The Alcohol Impairment Charges relate primarily to goodwill and to certain other indefinite lived intangible assets as well as property and equipment.Additionally, the increase in operating expenses was primarily due to increased general and administrative expenses of $110.0 million (primarily impairment charges related to the Alcohol Brands segment), increased selling and marketing expenses of $80.5 million (primarily sponsorships and endorsements), increased payroll expenses of $68.7 million and increased distribution expenses (including storage and warehouse) of $18.5 million. Operating expenses as a percentage of net sales for the years ended December 31, 2024 and 2023 were 28.3% and 25.8%, respectively.Operating Income Operating income was $1.93 billion for the year ended December 31, 2024, a decrease of approximately $23.1 million, or 1.2% lower than operating income of $1.95 billion for the year ended December 31, 2023. Operating income as a percentage of net sales decreased to 25.8% for the year ended December 31, 2024 from 27.4% for the year ended December 31, 2023. Operating income for the year ended December 31, 2024 decreased primarily due to the Alcohol Impairment Charges partially offset by an increase in gross profit.Operating income was $536.3 million and $409.3 million for the years ended December 31, 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 $2.46 billion for the year ended December 31, 2024, an increase of approximately $123.7 million, or 5.3% higher than operating income of $2.34 billion for the year ended December 31, 2023. The increase in operating income for the Monster Energy® Drinks segment was primarily the result of a $233.4 million increase in gross profit.Operating income for the Strategic Brands segment, exclusive of corporate and unallocated expenses, was $233.8 million for the year ended December 31, 2024, an increase of approximately $26.6 million, or 12.8% higher than operating income of $207.1 million for the year ended December 31, 2023. The increase in operating income for the Strategic Brands segment was primarily the result of a $35.5 million increase in gross profit.Operating loss for the Alcohol Brands segment, exclusive of corporate and unallocated expenses, was $200.3 million for the year ended December 31, 2024, an increase of approximately $119.2 million, or 146.9% higher than operating loss of $81.1 million for the year ended December 31, 2023. The increase in the operating loss for the Alcohol Brands segment for the year ended December 31, 2024 was primarily the result of the Alcohol Impairment Charges.Operating income for the Other segment, exclusive of corporate and unallocated expenses, was $4.6 million for the year ended December 31, 2024, an increase of approximately $1.1 million, or 30.4% higher than operating income of $3.6 million for the year ended December 31, 2023. The increase in operating income for the year ended December 31, 2024 was primarily the result of the increase in gross profit.Interest and Other Income (Expense), netInterest and other income (expense), net, was $59.2 million for the year ended December 31, 2024, as compared to interest and other income (expense), net, of $115.1 million for the year ended December 31, 2023. Foreign currency transaction gains (losses) were ($26.4) million and ($60.2) million for the years ended December 31, 2024 and 2023, respectively. Interest income was $115.0 million and $130.0 million for the years ended December 31, 2024 and 2023, respectively. The decrease in interest income for the year ended December 31, 2024 was primarily related to lower short- and long-term investment balances as a result of treasury stock repurchases made during the year ended December 31, 2024. Interest expense was $27.9 million and $0.4 million for the years ended December 31, 2024 and 2023, respectively. Interest and other income (expense), net included a gain on transaction of $45.4 million related to the acquisition of Bang Energy ("Bang Transaction Gain") for the year ended December 31, 2023. Operating expenses for the year ended December 31, 2024 included impairment charges of $138.8 million related to the Alcohol Brands segment (the "Alcohol Impairment Charges"). The Alcohol Impairment Charges were primarily the result of operating and financial performance not meeting projections due in part to challenges in the category, as well as a decrease in projected ongoing operating and financial performance. The Alcohol Impairment Charges relate primarily to goodwill and to certain other indefinite lived intangible assets as well as property and equipment.Additionally, the increase in operating expenses was primarily due to increased general and administrative expenses of $110.0 million (primarily impairment charges related to the Alcohol Brands segment), increased selling and marketing expenses of $80.5 million (primarily sponsorships and endorsements), increased payroll expenses of $68.7 million and increased distribution expenses (including storage and warehouse) of $18.5 million. Operating expenses as a percentage of net sales for the years ended December 31, 2024 and 2023 were 28.3% and 25.8%, respectively.Operating Income Operating income was $1.93 billion for the year ended December 31, 2024, a decrease of approximately $23.1 million, or 1.2% lower than operating income of $1.95 billion for the year ended December 31, 2023. Operating income as a percentage of net sales decreased to 25.8% for the year ended December 31, 2024 from 27.4% for the year ended December 31, 2023. Operating income for the year ended December 31, 2024 decreased primarily due to the Alcohol Impairment Charges partially offset by an increase in gross profit.Operating income was $536.3 million and $409.3 million for the years ended December 31, 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 $2.46 billion for the year ended December 31, 2024, an increase of approximately $123.7 million, or 5.3% higher than operating income of $2.34 billion for the year ended December 31, 2023. The increase in operating income for the Monster Energy® Drinks segment was primarily the result of a $233.4 million increase in gross profit.Operating income for the Strategic Brands segment, exclusive of corporate and unallocated expenses, was $233.8 million for the year ended December 31, 2024, an increase of approximately $26.6 million, or 12.8% higher than operating income of $207.1 million for the year ended December 31, 2023. The increase in operating income for the Strategic Brands segment was primarily the result of a $35.5 million increase in gross profit.Operating loss for the Alcohol Brands segment, exclusive of corporate and unallocated expenses, was $200.3 million for the year ended December 31, 2024, an increase of approximately $119.2 million, or 146.9% higher than operating loss of $81.1 million for the year ended December 31, 2023. The increase in the operating loss for the Alcohol Brands segment for the year ended December 31, 2024 was primarily the result of the Alcohol Impairment Charges.Operating income for the Other segment, exclusive of corporate and unallocated expenses, was $4.6 million for the year ended December 31, 2024, an increase of approximately $1.1 million, or 30.4% higher than operating income of $3.6 million for the year ended December 31, 2023. The increase in operating income for the year ended December 31, 2024 was primarily the result of the increase in gross profit.Interest and Other Income (Expense), netInterest and other income (expense), net, was $59.2 million for the year ended December 31, 2024, as compared to interest and other income (expense), net, of $115.1 million for the year ended December 31, 2023. Foreign currency transaction gains (losses) were ($26.4) million and ($60.2) million for the years ended December 31, 2024 and 2023, respectively. Interest income was $115.0 million and $130.0 million for the years ended December 31, 2024 and 2023, respectively. The decrease in interest income for the year ended December 31, 2024 was primarily related to lower short- and long-term investment balances as a result of treasury stock repurchases made during the year ended December 31, 2024. Interest expense was $27.9 million and $0.4 million for the years ended December 31, 2024 and 2023, respectively. Interest and other income (expense), net included a gain on transaction of $45.4 million related to the acquisition of Bang Energy ("Bang Transaction Gain") for the year ended December 31, 2023. Operating expenses for the year ended December 31, 2024 included impairment charges of $138.8 million related to the Alcohol Brands segment (the "Alcohol Impairment Charges"). The Alcohol Impairment Charges were primarily the result of operating and financial performance not meeting projections due in part to challenges in the category, as well as a decrease in projected ongoing operating and financial performance. The Alcohol Impairment Charges relate primarily to goodwill and to certain other indefinite lived intangible assets as well as property and equipment. Additionally, the increase in operating expenses was primarily due to increased general and administrative expenses of $110.0 million (primarily impairment charges related to the Alcohol Brands segment), increased selling and marketing expenses of $80.5 million (primarily sponsorships and endorsements), increased payroll expenses of $68.7 million and increased distribution expenses (including storage and warehouse) of $18.5 million. Operating expenses as a percentage of net sales for the years ended December 31, 2024 and 2023 were 28.3% and 25.8%, respectively. --- ## Modified: (Tabular Dollars in Thousands, Except Per Share Amounts) **Key changes:** - Reworded sentence: "​ Supplemental balance sheet information was as follows:​​​​​​​​​​​​​​December 31,​December 31,​ Balance Sheet Location 2024 2023Operating leases:​​​​​​​​Right-of-use assets​Other assets​$ 55,240​$ 58,845​​​​​​​​​Current lease liabilities​Accrued liabilities​$ 12,530​$ 11,088Noncurrent lease liabilities​Other liabilities​​ 43,857​​ 48,459Total operating lease liabilities​​​$ 56,387​$ 59,547​​​​​​​​​Finance leases:​​​​​​​​Right-of-use assets​Property and equipment, net​$ 6,129​$ 11,147​​​​​​​​​Current lease liabilities​Accrued liabilities​$ 4,211​$ 6,449Noncurrent lease liabilities​Other liabilities​​ 38​​ 19Total finance lease liabilities​​​$ 4,249​$ 6,468​Weighted-average remaining lease term and weighted-average discount rate for the Company's leases were as follows:​​​​​​​​​December 31,​December 31,​​ 2024 2023 Weighted-average remaining lease term in years:​​​​​Operating leases 5.5 6.3​Finance leases​ 0.8​ 0.7​​​​​​​Weighted-average discount rate:​​​​​Operating leases​ 4.8% 4.7%Finance leases 5.5% 6.3%​The following table outlines maturities of the Company's lease liabilities as of December 31, 2024:​​​​​​​​​ Undiscounted Future Lease Payments​​Operating Leases Finance Leases2025​$ 14,868​$ 4,3132026​ 11,514​ 142027​ 10,577​ 112028​​ 8,759​​ 112029​ 6,805​ 62030 and thereafter ​​ 11,851​​ - Total lease payments​ 64,374​ 4,355Less imputed interest​ (7,987)​ (106)Total​$ 56,387​$ 4,249​As of December 31, 2024, the Company did not have any significant leases that had not yet commenced.​ Supplemental balance sheet information was as follows:​​​​​​​​​​​​​​December 31,​December 31,​ Balance Sheet Location 2024 2023Operating leases:​​​​​​​​Right-of-use assets​Other assets​$ 55,240​$ 58,845​​​​​​​​​Current lease liabilities​Accrued liabilities​$ 12,530​$ 11,088Noncurrent lease liabilities​Other liabilities​​ 43,857​​ 48,459Total operating lease liabilities​​​$ 56,387​$ 59,547​​​​​​​​​Finance leases:​​​​​​​​Right-of-use assets​Property and equipment, net​$ 6,129​$ 11,147​​​​​​​​​Current lease liabilities​Accrued liabilities​$ 4,211​$ 6,449Noncurrent lease liabilities​Other liabilities​​ 38​​ 19Total finance lease liabilities​​​$ 4,249​$ 6,468​Weighted-average remaining lease term and weighted-average discount rate for the Company's leases were as follows:​​​​​​​​​December 31,​December 31,​​ 2024 2023 Weighted-average remaining lease term in years:​​​​​Operating leases 5.5 6.3​Finance leases​ 0.8​ 0.7​​​​​​​Weighted-average discount rate:​​​​​Operating leases​ 4.8% 4.7%Finance leases 5.5% 6.3%​The following table outlines maturities of the Company's lease liabilities as of December 31, 2024:​​​​​​​​​ Undiscounted Future Lease Payments​​Operating Leases Finance Leases2025​$ 14,868​$ 4,3132026​ 11,514​ 142027​ 10,577​ 112028​​ 8,759​​ 112029​ 6,805​ 62030 and thereafter ​​ 11,851​​ - Total lease payments​ 64,374​ 4,355Less imputed interest​ (7,987)​ (106)Total​$ 56,387​$ 4,249​As of December 31, 2024, the Company did not have any significant leases that had not yet commenced.​ Supplemental balance sheet information was as follows: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ December 31, ​ December 31, ​ Balance Sheet Location 2024 2023 Operating leases: ​ ​ ​ ​ ​ ​ ​ ​ Right-of-use assets ​ Other assets Other assets ​ $ 55,240 ​ $ 58,845 ​ ​ ​ ​ ​ ​ ​ ​ ​ Current lease liabilities ​ Accrued liabilities Accrued liabilities ​ $ 12,530 ​ $ 11,088 Noncurrent lease liabilities ​ Other liabilities Other liabilities ​ ​ 43,857 ​ ​ 48,459 Total operating lease liabilities ​ ​ ​ $ 56,387 ​ $ 59,547 ​ ​ ​ ​ ​ ​ ​ ​ ​ Finance leases: ​ ​ ​ ​ ​ ​ ​ ​ Right-of-use assets ​ Property and equipment, net Property and equipment, net ​ $ 6,129 ​ $ 11,147 ​ ​ ​ ​ ​ ​ ​ ​ ​ Current lease liabilities ​ Accrued liabilities Accrued liabilities ​ $ 4,211 ​ $ 6,449 Noncurrent lease liabilities ​ Other liabilities Other liabilities ​ ​ 38 ​ ​ 19 Total finance lease liabilities ​ ​ ​ $ 4,249 ​ $ 6,468 ​ Weighted-average remaining lease term and weighted-average discount rate for the Company's leases were as follows: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ December 31, ​ December 31, ​ ​ 2024 2023 Weighted-average remaining lease term in years: ​ ​ ​ ​ ​ Operating leases 5.5 6.3 ​ Finance leases ​ 0.8 ​ 0.7 ​ ​ ​ ​ ​ ​ ​ Weighted-average discount rate: ​ ​ ​ ​ ​ Operating leases ​ 4.8 % 4.7 % Finance leases 5.5 % 6.3 % ​ The following table outlines maturities of the Company's lease liabilities as of December 31, 2024: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Undiscounted Future Lease Payments ​ ​ Operating Leases Finance Leases 2025 ​ $ 14,868 ​ $ 4,313 2026 ​ 11,514 ​ 14 2027 ​ 10,577 ​ 11 2028 ​ ​ 8,759 ​ ​ 11 2029 ​ 6,805 ​ 6 2030 and thereafter ​ ​ 11,851 ​ ​ - Total lease payments Total lease payments ​ 64,374 ​ 4,355 Less imputed interest Less imputed interest ​ (7,987) ​ (106) Total ​ $ 56,387 ​ $ 4,249 ​ As of December 31, 2024, the Company did not have any significant leases that had not yet commenced." - Reworded sentence: "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 years ended December 31, 2024, 2023 and 2022, realized gains or losses recognized on the sale of investments were not significant." **Prior (2024):** ​ Supplemental cash flow information related to leases for the years ended December 31, 2023, 2022 and 2021 were as follows:​​ 2023 2022 2021Cash paid for amounts included in the measurement of lease liabilities:​​ ​​ ​​ Operating cash flows from operating leases​$ 10,634​$ 8,164​$ 4,123Operating cash flows from finance leases​ 255​ 24​ 19Financing cash flows from finance leases​ 6,346​ 2,091​ 2,698​​​​​​​​​​ROU assets obtained in exchange for lease obligations:​ ​​ ​​ ​Finance leases​ 12,010​ 1,897​ 2,878Operating leases​ 30,342​ 22,962​ 4,313​Supplemental balance sheet information related to leases was as follows:​​​​​​​​​​​​​​December 31,​December 31,​ Balance Sheet Location​2023 2022Operating leases:​​​​​​​​Right-of-use assets​Other assets​$ 58,845​$ 38,012​​​​​​​​​Current lease liabilities​Accrued liabilities​$ 11,088​$ 7,747Noncurrent lease liabilities​Other liabilities​​ 48,459​​ 29,586Total operating lease liabilities​​​$ 59,547​$ 37,333​​​​​​​​​Finance leases:​​​​​​​​Right-of-use assets​Property and equipment, net​$ 11,147​$ 1,598​​​​​​​​​Current lease liabilities​Accrued liabilities​$ 6,449​$ 757Noncurrent lease liabilities​Other liabilities​​ 19​​ 41Total finance lease liabilities​​​$ 6,468​$ 798​Weighted-average remaining lease term and weighted-average discount rate for the Company's leases were as follows:​​​​​​​​​December 31,​December 31,​​ 2023 2022 Weighted-average remaining lease term in years:​​​​​Operating leases 6.3 6.7​Finance leases​ 0.7​ 0.8​​​​​​​Weighted-average discount rate:​​​​​Operating leases​ 4.7% 3.4%Finance leases 6.3% 3.6%​ Supplemental cash flow information related to leases for the years ended December 31, 2023, 2022 and 2021 were as follows: ​ ​ 2023 2022 2021 Cash paid for amounts included in the measurement of lease liabilities: ​ ​ ​ ​ ​ ​ Operating cash flows from operating leases ​ $ 10,634 ​ $ 8,164 ​ $ 4,123 Operating cash flows from finance leases ​ 255 ​ 24 ​ 19 Financing cash flows from finance leases ​ 6,346 ​ 2,091 ​ 2,698 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ROU assets obtained in exchange for lease obligations: ​ ​ ​ ​ ​ ​ Finance leases ​ 12,010 ​ 1,897 ​ 2,878 Operating leases ​ 30,342 ​ 22,962 ​ 4,313 ​ Supplemental balance sheet information related to leases was as follows: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ December 31, ​ December 31, ​ Balance Sheet Location ​ 2023 2022 Operating leases: ​ ​ ​ ​ ​ ​ ​ ​ Right-of-use assets ​ Other assets Other assets ​ $ 58,845 ​ $ 38,012 ​ ​ ​ ​ ​ ​ ​ ​ ​ Current lease liabilities ​ Accrued liabilities Accrued liabilities ​ $ 11,088 ​ $ 7,747 Noncurrent lease liabilities ​ Other liabilities Other liabilities ​ ​ 48,459 ​ ​ 29,586 Total operating lease liabilities ​ ​ ​ $ 59,547 ​ $ 37,333 ​ ​ ​ ​ ​ ​ ​ ​ ​ Finance leases: ​ ​ ​ ​ ​ ​ ​ ​ Right-of-use assets ​ Property and equipment, net Property and equipment, net ​ $ 11,147 ​ $ 1,598 ​ ​ ​ ​ ​ ​ ​ ​ ​ Current lease liabilities ​ Accrued liabilities Accrued liabilities ​ $ 6,449 ​ $ 757 Noncurrent lease liabilities ​ Other liabilities Other liabilities ​ ​ 19 ​ ​ 41 Total finance lease liabilities ​ ​ ​ $ 6,468 ​ $ 798 ​ Weighted-average remaining lease term and weighted-average discount rate for the Company's leases were as follows: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ December 31, ​ December 31, ​ ​ 2023 2022 Weighted-average remaining lease term in years: ​ ​ ​ ​ ​ Operating leases 6.3 6.7 ​ Finance leases ​ 0.7 ​ 0.8 ​ ​ ​ ​ ​ ​ ​ Weighted-average discount rate: ​ ​ ​ ​ ​ Operating leases ​ 4.7 % 3.4 % Finance leases 6.3 % 3.6 % ​ 99 99 Table of ContentsMONSTER BEVERAGE CORPORATION AND SUBSIDIARIESNOTES TO CONSOLIDATED FINANCIAL STATEMENTS(Tabular Dollars in Thousands, Except Per Share Amounts)​The following table outlines maturities of the Company's lease liabilities as of December 31, 2023:​​​​​​​​​ Undiscounted Future Lease Payments​​Operating Leases Finance Leases2024​$ 13,490​$ 6,6012025​ 11,555​ 172026​ 9,522​ 22027​​ 9,216​​ - 2028​ 7,706​ - 2029 and thereafter​​ 17,822​​ - Total lease payments​ 69,311​ 6,620Less imputed interest​ (9,764)​ (152)Total​$ 59,547​$ 6,468​As of December 31, 2023, the Company did not have any significant leases that had not yet commenced.​5. INVESTMENTSThe following table summarizes the Company's investments at:​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​Continuous​Continuous​​​​​Gross​Gross​​​​Unrealized​Unrealized​​​​​Unrealized​Unrealized​​​​Loss Position​Loss Position​​Amortized​Holding​Holding​Fair​less than 12​greater than December 31, 2023 Cost Gains Losses Value Months 12 MonthsAvailable-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​$ - ​100 Table of ContentsMONSTER BEVERAGE CORPORATION AND SUBSIDIARIESNOTES TO CONSOLIDATED FINANCIAL STATEMENTS(Tabular Dollars in Thousands, Except Per Share Amounts)​ Table of Contents Table of Contents **Current (2025):** ​ Supplemental balance sheet information was as follows:​​​​​​​​​​​​​​December 31,​December 31,​ Balance Sheet Location 2024 2023Operating leases:​​​​​​​​Right-of-use assets​Other assets​$ 55,240​$ 58,845​​​​​​​​​Current lease liabilities​Accrued liabilities​$ 12,530​$ 11,088Noncurrent lease liabilities​Other liabilities​​ 43,857​​ 48,459Total operating lease liabilities​​​$ 56,387​$ 59,547​​​​​​​​​Finance leases:​​​​​​​​Right-of-use assets​Property and equipment, net​$ 6,129​$ 11,147​​​​​​​​​Current lease liabilities​Accrued liabilities​$ 4,211​$ 6,449Noncurrent lease liabilities​Other liabilities​​ 38​​ 19Total finance lease liabilities​​​$ 4,249​$ 6,468​Weighted-average remaining lease term and weighted-average discount rate for the Company's leases were as follows:​​​​​​​​​December 31,​December 31,​​ 2024 2023 Weighted-average remaining lease term in years:​​​​​Operating leases 5.5 6.3​Finance leases​ 0.8​ 0.7​​​​​​​Weighted-average discount rate:​​​​​Operating leases​ 4.8% 4.7%Finance leases 5.5% 6.3%​The following table outlines maturities of the Company's lease liabilities as of December 31, 2024:​​​​​​​​​ Undiscounted Future Lease Payments​​Operating Leases Finance Leases2025​$ 14,868​$ 4,3132026​ 11,514​ 142027​ 10,577​ 112028​​ 8,759​​ 112029​ 6,805​ 62030 and thereafter ​​ 11,851​​ - Total lease payments​ 64,374​ 4,355Less imputed interest​ (7,987)​ (106)Total​$ 56,387​$ 4,249​As of December 31, 2024, the Company did not have any significant leases that had not yet commenced.​ Supplemental balance sheet information was as follows:​​​​​​​​​​​​​​December 31,​December 31,​ Balance Sheet Location 2024 2023Operating leases:​​​​​​​​Right-of-use assets​Other assets​$ 55,240​$ 58,845​​​​​​​​​Current lease liabilities​Accrued liabilities​$ 12,530​$ 11,088Noncurrent lease liabilities​Other liabilities​​ 43,857​​ 48,459Total operating lease liabilities​​​$ 56,387​$ 59,547​​​​​​​​​Finance leases:​​​​​​​​Right-of-use assets​Property and equipment, net​$ 6,129​$ 11,147​​​​​​​​​Current lease liabilities​Accrued liabilities​$ 4,211​$ 6,449Noncurrent lease liabilities​Other liabilities​​ 38​​ 19Total finance lease liabilities​​​$ 4,249​$ 6,468​Weighted-average remaining lease term and weighted-average discount rate for the Company's leases were as follows:​​​​​​​​​December 31,​December 31,​​ 2024 2023 Weighted-average remaining lease term in years:​​​​​Operating leases 5.5 6.3​Finance leases​ 0.8​ 0.7​​​​​​​Weighted-average discount rate:​​​​​Operating leases​ 4.8% 4.7%Finance leases 5.5% 6.3%​The following table outlines maturities of the Company's lease liabilities as of December 31, 2024:​​​​​​​​​ Undiscounted Future Lease Payments​​Operating Leases Finance Leases2025​$ 14,868​$ 4,3132026​ 11,514​ 142027​ 10,577​ 112028​​ 8,759​​ 112029​ 6,805​ 62030 and thereafter ​​ 11,851​​ - Total lease payments​ 64,374​ 4,355Less imputed interest​ (7,987)​ (106)Total​$ 56,387​$ 4,249​As of December 31, 2024, the Company did not have any significant leases that had not yet commenced.​ Supplemental balance sheet information was as follows: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ December 31, ​ December 31, ​ Balance Sheet Location 2024 2023 Operating leases: ​ ​ ​ ​ ​ ​ ​ ​ Right-of-use assets ​ Other assets Other assets ​ $ 55,240 ​ $ 58,845 ​ ​ ​ ​ ​ ​ ​ ​ ​ Current lease liabilities ​ Accrued liabilities Accrued liabilities ​ $ 12,530 ​ $ 11,088 Noncurrent lease liabilities ​ Other liabilities Other liabilities ​ ​ 43,857 ​ ​ 48,459 Total operating lease liabilities ​ ​ ​ $ 56,387 ​ $ 59,547 ​ ​ ​ ​ ​ ​ ​ ​ ​ Finance leases: ​ ​ ​ ​ ​ ​ ​ ​ Right-of-use assets ​ Property and equipment, net Property and equipment, net ​ $ 6,129 ​ $ 11,147 ​ ​ ​ ​ ​ ​ ​ ​ ​ Current lease liabilities ​ Accrued liabilities Accrued liabilities ​ $ 4,211 ​ $ 6,449 Noncurrent lease liabilities ​ Other liabilities Other liabilities ​ ​ 38 ​ ​ 19 Total finance lease liabilities ​ ​ ​ $ 4,249 ​ $ 6,468 ​ Weighted-average remaining lease term and weighted-average discount rate for the Company's leases were as follows: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ December 31, ​ December 31, ​ ​ 2024 2023 Weighted-average remaining lease term in years: ​ ​ ​ ​ ​ Operating leases 5.5 6.3 ​ Finance leases ​ 0.8 ​ 0.7 ​ ​ ​ ​ ​ ​ ​ Weighted-average discount rate: ​ ​ ​ ​ ​ Operating leases ​ 4.8 % 4.7 % Finance leases 5.5 % 6.3 % ​ The following table outlines maturities of the Company's lease liabilities as of December 31, 2024: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Undiscounted Future Lease Payments ​ ​ Operating Leases Finance Leases 2025 ​ $ 14,868 ​ $ 4,313 2026 ​ 11,514 ​ 14 2027 ​ 10,577 ​ 11 2028 ​ ​ 8,759 ​ ​ 11 2029 ​ 6,805 ​ 6 2030 and thereafter ​ ​ 11,851 ​ ​ - Total lease payments Total lease payments ​ 64,374 ​ 4,355 Less imputed interest Less imputed interest ​ (7,987) ​ (106) Total ​ $ 56,387 ​ $ 4,249 ​ As of December 31, 2024, the Company did not have any significant leases that had not yet commenced. ​ 92 92 Table of ContentsMONSTER BEVERAGE CORPORATION AND SUBSIDIARIESNOTES TO CONSOLIDATED FINANCIAL STATEMENTS(Tabular Dollars in Thousands, Except Per Share Amounts)​5.INVESTMENTSThe Company held no short-term or long-term investments at December 31, 2024. The following table summarizes the Company's investments at December 31, 2023.​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​Continuous​Continuous​​​​​Gross​Gross​​​​Unrealized​Unrealized​​​​​Unrealized​Unrealized​​​​Loss Position​Loss Position​​Amortized​Holding​Holding​Fair​less than 12​greater than December 31, 2023 Cost Gains Losses Value Months 12 MonthsAvailable-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 years ended December 31, 2024, 2023 and 2022, 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 Company held no short-term or long-term investments at December 31, 2024. The following table summarizes the underlying contractual maturities of the Company's investments at December 31, 2023.​​​​​​​​​​December 31, 2023​ Amortized Cost Fair ValueLess than 1 year:​​​​​​Commercial paper​$ 163,775​$ 163,774Municipal securities​ 361​ 361U.S. government agency securities​ 116,524​ 116,548Certificates of deposit ​ 15,590​ 15,590U.S. treasuries​​ 412,936​​ 412,057Corporate bonds​​ 247,340​​ 247,275Due 1 - 10 years:​​​​​​U.S. treasuries​​ 35,896​​ 35,967U.S. government agency securities​ 23,485​ 23,531Corporate bonds​​ 16,903​​ 16,933Total​$ 1,032,810​$ 1,032,036​​93 Table of ContentsMONSTER BEVERAGE CORPORATION AND SUBSIDIARIESNOTES TO CONSOLIDATED FINANCIAL STATEMENTS(Tabular Dollars in Thousands, Except Per Share Amounts)​ Table of Contents Table of Contents --- ## Modified: FOR THE YEARS ENDED DECEMBER 31, 2024, 2023 AND 2022 (In Thousands) **Key changes:** - Reworded sentence: "​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ 2024 2023 2022 CASH FLOWS FROM OPERATING ACTIVITIES: ​ ​ ​ ​ ​ ​ ​ ​ ​ Net income ​ $ 1,509,048 ​ $ 1,630,988 ​ $ 1,191,624 Adjustments to reconcile net income to net cash provided by operating activities: ​ ​ ​ ​ ​ ​ ​ ​ ​ Depreciation and amortization ​ 80,434 ​ 68,898 ​ 61,241 Non-cash lease expense ​ ​ 13,521 ​ ​ 9,043 ​ ​ 7,337 Loss (gain) on disposal of property and equipment ​ 3,328 ​ ​ 166 ​ ​ (185) Gain on Bang Transaction ​ ​ - ​ ​ (45,382) ​ ​ - Impairment of goodwill and other intangibles ​ ​ 127,098 ​ ​ 38,700 ​ ​ 2,200 Impairment of property and equipment ​ ​ 8,184 ​ ​ 4,336 ​ ​ - Stock-based compensation ​ 90,985 ​ 68,836 ​ 64,109 Deferred income taxes ​ (11,705) ​ ​ 2,040 ​ ​ 48,182 Effect on cash of changes in operating assets and liabilities net of acquisitions: ​ ​ ​ ​ ​ ​ ​ ​ ​ Accounts receivable ​ (93,915) ​ (163,158) ​ (128,981) Inventories ​ 211,503 ​ 7,898 ​ (347,712) Prepaid expenses and other assets ​ 8,959 ​ (10,215) ​ (38,268) Prepaid income taxes ​ 3,062 ​ (18,833) ​ (4,439) Accounts payable ​ (61,491) ​ 112,786 ​ 49,765 Accrued liabilities ​ 18,371 ​ (10,393) ​ (30,419) Accrued promotional allowances ​ 9,736 ​ 8,418 ​ 50,821 Accrued compensation ​ 5,947 ​ 13,398 ​ 3,729 Income taxes payable ​ 9,438 ​ 1,748 ​ (16,860) Other liabilities ​ ​ 13,390 ​ ​ 22,951 ​ ​ (4,540) Deferred revenue ​ (17,360) ​ (24,472) ​ (19,905) Net cash provided by operating activities ​ 1,928,533 ​ 1,717,753 ​ 887,699 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ CASH FLOWS FROM INVESTING ACTIVITIES: ​ ​ ​ ​ ​ ​ ​ ​ ​ Sales of available-for-sale investments ​ 1,377,915 ​ 2,029,737 ​ 2,252,355 Purchases of available-for-sale investments ​ ​ (342,121) ​ ​ (1,620,718) ​ ​ (1,847,067) Acquisition of Bang Energy ​ ​ - ​ ​ (363,385) ​ ​ - Acquisition of Monster Brewing, net of cash ​ - ​ - ​ (329,472) Purchases of property and equipment ​ (264,074) ​ (221,428) ​ (188,726) Proceeds from sale of property and equipment ​ 2,732 ​ 2,520 ​ 1,313 Additions to intangibles ​ (42,360) ​ (13,296) ​ (23,427) Decrease (increase) in other assets ​ 1,635 ​ (6,825) ​ (26,343) Net cash provided by (used in) investing activities ​ 733,727 ​ (193,395) ​ (161,367) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ CASH FLOWS FROM FINANCING ACTIVITIES: ​ ​ ​ ​ ​ ​ ​ ​ ​ (Payments) borrowings on short-term debt ​ (8,223) ​ (13,914) ​ 75 Borrowings on credit facilities ​ ​ 750,000 ​ ​ - ​ ​ - Payments on credit facilities ​ ​ (375,000) ​ ​ - ​ ​ - Payments for debt issuance costs ​ ​ (2,904) ​ ​ - ​ ​ - Issuance of common stock ​ 78,973 ​ 130,267 ​ 64,015 Purchases of common stock held in treasury ​ (3,771,875) ​ (658,952) ​ (771,028) Net cash used in financing activities ​ (3,329,029) ​ (542,599) ​ (706,938) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Effect of exchange rate changes on cash and cash equivalents ​ (97,619) ​ 8,775 ​ (38,715) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS ​ (764,388) ​ 990,534 ​ (19,321) CASH AND CASH EQUIVALENTS, beginning of year ​ 2,297,675 ​ 1,307,141 ​ 1,326,462 CASH AND CASH EQUIVALENTS, end of year ​ $ 1,533,287 ​ $ 2,297,675 ​ $ 1,307,141 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ SUPPLEMENTAL INFORMATION: ​ ​ ​ ​ ​ ​ ​ ​ ​ Cash paid during the year for: ​ ​ ​ ​ ​ ​ ​ ​ ​ Interest ​ $ 25,270 ​ $ 363 ​ $ 431 Income taxes ​ $ 476,223 ​ $ 423,224 ​ $ 379,998 ​ See accompanying notes to consolidated financial statements." **Prior (2024):** ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ 2023 2022 2021 CASH FLOWS FROM OPERATING ACTIVITIES: ​ ​ ​ ​ ​ ​ ​ ​ ​ Net income ​ $ 1,630,988 ​ $ 1,191,624 ​ $ 1,377,475 Adjustments to reconcile net income to ​ ​ ​ ​ ​ ​ ​ ​ ​ net cash provided by operating activities: ​ ​ ​ ​ ​ ​ ​ ​ ​ Depreciation and amortization ​ 68,898 ​ 61,241 ​ 50,155 Non-cash lease expense ​ ​ 9,043 ​ ​ 7,337 ​ ​ 4,107 Loss (gain) on disposal of property and equipment ​ 166 ​ ​ (185) ​ ​ (1,013) Gain on Bang Transaction ​ ​ (45,382) ​ ​ - ​ ​ - Loss on impairment of intangibles ​ ​ 38,700 ​ ​ 2,200 ​ ​ - Loss on impairment of property and equipment ​ ​ 4,336 ​ ​ - ​ ​ - Stock-based compensation ​ 68,836 ​ 64,109 ​ 70,483 Deferred income taxes ​ 2,040 ​ ​ 48,182 ​ ​ 16,429 Effect on cash of changes in operating assets and liabilities ​ ​ ​ ​ ​ ​ ​ ​ ​ net of acquisitions: ​ ​ ​ ​ ​ ​ ​ ​ ​ Accounts receivable ​ (163,158) ​ (128,981) ​ (254,228) Inventories ​ 7,898 ​ (347,712) ​ (277,793) Prepaid expenses and other assets ​ (10,215) ​ (38,268) ​ (29,341) Prepaid income taxes ​ (18,833) ​ (4,439) ​ (10,919) Accounts payable ​ 112,786 ​ 49,765 ​ 114,297 Accrued liabilities ​ (10,393) ​ (30,419) ​ 71,586 Accrued promotional allowances ​ 8,418 ​ 50,821 ​ 31,498 Accrued compensation ​ 13,398 ​ 3,729 ​ 7,950 Income taxes payable ​ 1,748 ​ (16,860) ​ 7,221 Other liabilities ​ ​ 22,951 ​ ​ (4,540) ​ ​ 492 Deferred revenue ​ (24,472) ​ (19,905) ​ (22,658) Net cash provided by operating activities ​ 1,717,753 ​ 887,699 ​ 1,155,741 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ CASH FLOWS FROM INVESTING ACTIVITIES: ​ ​ ​ ​ ​ ​ ​ ​ ​ Sales of available-for-sale investments ​ 2,029,737 ​ 2,252,355 ​ 1,488,599 Purchases of available-for-sale investments ​ ​ (1,620,718) ​ ​ (1,847,067) ​ ​ (2,413,143) Acquisition of Bang Energy ​ ​ (363,385) ​ ​ - ​ ​ - Acquisition of CANarchy, net of cash ​ - ​ (329,472) ​ - Purchases of property and equipment ​ (221,428) ​ (188,726) ​ (43,868) Proceeds from sale of property and equipment ​ 2,520 ​ 1,313 ​ 1,328 Additions to intangibles ​ (13,296) ​ (23,427) ​ (13,585) Increase in other assets ​ (6,825) ​ (26,343) ​ (11,353) Net cash used in investing activities ​ (193,395) ​ (161,367) ​ (992,022) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ CASH FLOWS FROM FINANCING ACTIVITIES: ​ ​ ​ ​ ​ ​ ​ ​ ​ (Payments) borrowings on debt ​ (13,914) ​ 75 ​ 2,928 Issuance of common stock ​ 130,267 ​ 64,015 ​ 45,723 Purchases of common stock held in treasury ​ (658,952) ​ (771,028) ​ (13,830) Net cash (used in) provided by financing activities ​ (542,599) ​ (706,938) ​ 34,821 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Effect of exchange rate changes on cash and cash equivalents ​ 8,775 ​ (38,715) ​ (52,491) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS ​ 990,534 ​ (19,321) ​ 146,049 CASH AND CASH EQUIVALENTS, beginning of year ​ 1,307,141 ​ 1,326,462 ​ 1,180,413 CASH AND CASH EQUIVALENTS, end of year ​ $ 2,297,675 ​ $ 1,307,141 ​ $ 1,326,462 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ SUPPLEMENTAL INFORMATION: ​ ​ ​ ​ ​ ​ ​ ​ ​ Cash paid during the year for: ​ ​ ​ ​ ​ ​ ​ ​ ​ Interest ​ $ 363 ​ $ 431 ​ $ 134 Income taxes ​ $ 423,224 ​ $ 379,998 ​ $ 420,521 ​ See accompanying notes to consolidated financial statements. ​ 85 85 Table of ContentsMONSTER BEVERAGE CORPORATION AND SUBSIDIARIESCONSOLIDATED STATEMENTS OF CASH FLOWS (Continued)FOR THE YEARS ENDED DECEMBER 31, 2023, 2022 AND 2021​SUPPLEMENTAL DISCLOSURE OF NON-CASH ITEMS:​Included in accrued liabilities as of December 31, 2023, 2022 and 2021 were $15.4 million, $9.4 million and $14.0 million, respectively, related to net additions to other intangible assets.Accounts payable included equipment purchases of $16.9 million, $2.9 million and $0.6 million as of December 31, 2023, 2022 and 2021, respectively.Accounts receivable included sales of available-for-sale short-term investments of $3.0 million and $15.2 million as of December 31, 2023 and 2022, respectively. No sales of available-for-sale investments were included in accounts receivable as of December 31, 2021.See accompanying notes to consolidated financial statements.​​86 Table of Contents Table of Contents Table of Contents MONSTER BEVERAGE CORPORATION AND SUBSIDIARIESCONSOLIDATED STATEMENTS OF CASH FLOWS (Continued)FOR THE YEARS ENDED DECEMBER 31, 2023, 2022 AND 2021​SUPPLEMENTAL DISCLOSURE OF NON-CASH ITEMS:​Included in accrued liabilities as of December 31, 2023, 2022 and 2021 were $15.4 million, $9.4 million and $14.0 million, respectively, related to net additions to other intangible assets.Accounts payable included equipment purchases of $16.9 million, $2.9 million and $0.6 million as of December 31, 2023, 2022 and 2021, respectively.Accounts receivable included sales of available-for-sale short-term investments of $3.0 million and $15.2 million as of December 31, 2023 and 2022, respectively. No sales of available-for-sale investments were included in accounts receivable as of December 31, 2021.See accompanying notes to consolidated financial statements.​​ **Current (2025):** ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ 2024 2023 2022 CASH FLOWS FROM OPERATING ACTIVITIES: ​ ​ ​ ​ ​ ​ ​ ​ ​ Net income ​ $ 1,509,048 ​ $ 1,630,988 ​ $ 1,191,624 Adjustments to reconcile net income to net cash provided by operating activities: ​ ​ ​ ​ ​ ​ ​ ​ ​ Depreciation and amortization ​ 80,434 ​ 68,898 ​ 61,241 Non-cash lease expense ​ ​ 13,521 ​ ​ 9,043 ​ ​ 7,337 Loss (gain) on disposal of property and equipment ​ 3,328 ​ ​ 166 ​ ​ (185) Gain on Bang Transaction ​ ​ - ​ ​ (45,382) ​ ​ - Impairment of goodwill and other intangibles ​ ​ 127,098 ​ ​ 38,700 ​ ​ 2,200 Impairment of property and equipment ​ ​ 8,184 ​ ​ 4,336 ​ ​ - Stock-based compensation ​ 90,985 ​ 68,836 ​ 64,109 Deferred income taxes ​ (11,705) ​ ​ 2,040 ​ ​ 48,182 Effect on cash of changes in operating assets and liabilities net of acquisitions: ​ ​ ​ ​ ​ ​ ​ ​ ​ Accounts receivable ​ (93,915) ​ (163,158) ​ (128,981) Inventories ​ 211,503 ​ 7,898 ​ (347,712) Prepaid expenses and other assets ​ 8,959 ​ (10,215) ​ (38,268) Prepaid income taxes ​ 3,062 ​ (18,833) ​ (4,439) Accounts payable ​ (61,491) ​ 112,786 ​ 49,765 Accrued liabilities ​ 18,371 ​ (10,393) ​ (30,419) Accrued promotional allowances ​ 9,736 ​ 8,418 ​ 50,821 Accrued compensation ​ 5,947 ​ 13,398 ​ 3,729 Income taxes payable ​ 9,438 ​ 1,748 ​ (16,860) Other liabilities ​ ​ 13,390 ​ ​ 22,951 ​ ​ (4,540) Deferred revenue ​ (17,360) ​ (24,472) ​ (19,905) Net cash provided by operating activities ​ 1,928,533 ​ 1,717,753 ​ 887,699 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ CASH FLOWS FROM INVESTING ACTIVITIES: ​ ​ ​ ​ ​ ​ ​ ​ ​ Sales of available-for-sale investments ​ 1,377,915 ​ 2,029,737 ​ 2,252,355 Purchases of available-for-sale investments ​ ​ (342,121) ​ ​ (1,620,718) ​ ​ (1,847,067) Acquisition of Bang Energy ​ ​ - ​ ​ (363,385) ​ ​ - Acquisition of Monster Brewing, net of cash ​ - ​ - ​ (329,472) Purchases of property and equipment ​ (264,074) ​ (221,428) ​ (188,726) Proceeds from sale of property and equipment ​ 2,732 ​ 2,520 ​ 1,313 Additions to intangibles ​ (42,360) ​ (13,296) ​ (23,427) Decrease (increase) in other assets ​ 1,635 ​ (6,825) ​ (26,343) Net cash provided by (used in) investing activities ​ 733,727 ​ (193,395) ​ (161,367) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ CASH FLOWS FROM FINANCING ACTIVITIES: ​ ​ ​ ​ ​ ​ ​ ​ ​ (Payments) borrowings on short-term debt ​ (8,223) ​ (13,914) ​ 75 Borrowings on credit facilities ​ ​ 750,000 ​ ​ - ​ ​ - Payments on credit facilities ​ ​ (375,000) ​ ​ - ​ ​ - Payments for debt issuance costs ​ ​ (2,904) ​ ​ - ​ ​ - Issuance of common stock ​ 78,973 ​ 130,267 ​ 64,015 Purchases of common stock held in treasury ​ (3,771,875) ​ (658,952) ​ (771,028) Net cash used in financing activities ​ (3,329,029) ​ (542,599) ​ (706,938) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Effect of exchange rate changes on cash and cash equivalents ​ (97,619) ​ 8,775 ​ (38,715) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS ​ (764,388) ​ 990,534 ​ (19,321) CASH AND CASH EQUIVALENTS, beginning of year ​ 2,297,675 ​ 1,307,141 ​ 1,326,462 CASH AND CASH EQUIVALENTS, end of year ​ $ 1,533,287 ​ $ 2,297,675 ​ $ 1,307,141 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ SUPPLEMENTAL INFORMATION: ​ ​ ​ ​ ​ ​ ​ ​ ​ Cash paid during the year for: ​ ​ ​ ​ ​ ​ ​ ​ ​ Interest ​ $ 25,270 ​ $ 363 ​ $ 431 Income taxes ​ $ 476,223 ​ $ 423,224 ​ $ 379,998 ​ See accompanying notes to consolidated financial statements. ​ 80 80 Table of ContentsMONSTER BEVERAGE CORPORATION AND SUBSIDIARIESCONSOLIDATED STATEMENTS OF CASH FLOWS (Continued)FOR THE YEARS ENDED DECEMBER 31, 2024, 2023 AND 2022​SUPPLEMENTAL DISCLOSURE OF NON-CASH ITEMS:​Included in accrued liabilities as of December 31, 2024, 2023 and 2022 were additions to other intangible assets of $5.0 million, $15.4 million and $9.4 million, respectively.Included in accounts payable as of December 31, 2024, 2023 and 2022 were property and equipment purchases of $6.3 million, $16.9 million and $2.9 million, respectively.Included in accounts receivable as of December 31, 2023 and 2022 were sales of available-for-sale short-term investments of $3.0 million and $15.2 million, respectively. See accompanying notes to consolidated financial statements.​​81 Table of Contents Table of Contents Table of Contents MONSTER BEVERAGE CORPORATION AND SUBSIDIARIESCONSOLIDATED STATEMENTS OF CASH FLOWS (Continued)FOR THE YEARS ENDED DECEMBER 31, 2024, 2023 AND 2022​SUPPLEMENTAL DISCLOSURE OF NON-CASH ITEMS:​Included in accrued liabilities as of December 31, 2024, 2023 and 2022 were additions to other intangible assets of $5.0 million, $15.4 million and $9.4 million, respectively.Included in accounts payable as of December 31, 2024, 2023 and 2022 were property and equipment purchases of $6.3 million, $16.9 million and $2.9 million, respectively.Included in accounts receivable as of December 31, 2023 and 2022 were sales of available-for-sale short-term investments of $3.0 million and $15.2 million, respectively. See accompanying notes to consolidated financial statements.​​ MONSTER BEVERAGE CORPORATION AND SUBSIDIARIESCONSOLIDATED STATEMENTS OF CASH FLOWS (Continued)FOR THE YEARS ENDED DECEMBER 31, 2024, 2023 AND 2022​SUPPLEMENTAL DISCLOSURE OF NON-CASH ITEMS:​Included in accrued liabilities as of December 31, 2024, 2023 and 2022 were additions to other intangible assets of $5.0 million, $15.4 million and $9.4 million, respectively.Included in accounts payable as of December 31, 2024, 2023 and 2022 were property and equipment purchases of $6.3 million, $16.9 million and $2.9 million, respectively.Included in accounts receivable as of December 31, 2023 and 2022 were sales of available-for-sale short-term investments of $3.0 million and $15.2 million, respectively. See accompanying notes to consolidated financial statements.​​ --- ## Modified: FOR THE YEARS ENDED DECEMBER 31, 2024, 2023 AND 2022 (In Thousands) **Key changes:** - Reworded sentence: "​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ 2024 2023 2022 Net income, as reported ​ $ 1,509,048 ​ $ 1,630,988 ​ $ 1,191,624 Other comprehensive income (loss), net of tax: ​ ​ ​ ​ ​ ​ ​ ​ ​ Change in foreign currency translation adjustment ​ (140,941) ​ 24,241 ​ (85,021) Change in net unrealized gain (loss) on available-for-sale investments ​ ​ 758 ​ ​ 5,085 ​ ​ (4,887) Change in net gain (loss) on commodity derivatives ​ (3,967) ​ 4,410 ​ - Other comprehensive income (loss) ​ (144,150) ​ 33,736 ​ (89,908) Comprehensive income ​ $ 1,364,898 ​ $ 1,664,724 ​ $ 1,101,716 ​ See accompanying notes to consolidated financial statements." **Prior (2024):** ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ 2023 2022 2021 Net income, as reported ​ $ 1,630,988 ​ $ 1,191,624 ​ $ 1,377,475 Other comprehensive income (loss): ​ ​ ​ ​ ​ ​ ​ ​ ​ Change in foreign currency translation adjustment ​ 24,241 ​ (85,021) ​ (71,158) Available-for-sale investments: ​ ​ ​ ​ ​ ​ ​ ​ ​ Change in net unrealized gains (losses) ​ 5,085 ​ (4,887) ​ (1,041) Net gains on commodity derivatives ​ 4,410 ​ - ​ - Other comprehensive income (loss) ​ 33,736 ​ (89,908) ​ (72,199) Comprehensive income ​ $ 1,664,724 ​ $ 1,101,716 ​ $ 1,305,276 ​ See accompanying notes to consolidated financial statements. ​ 83 83 Table of ContentsMONSTER BEVERAGE CORPORATION AND SUBSIDIARIESCONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITYFOR THE YEARS ENDED DECEMBER 31, 2023, 2022 AND 2021 (In Thousands)​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​Accumulated​​​​​​​​​​​​​​​​​​​​​Other​​​​​​Total​​Common Stock1​Additional​Retained​Comprehensive​Treasury Stock​Stockholders'​ Shares Amount Paid-in Capital1 Earnings (Loss) Income Shares1 Amount EquityBalance, January 1, 2021 1,277,324 $ 6,386 $ 4,534,789 $ 6,432,074 $ 3,034 (221,130) $ (5,815,423) $ 5,160,860Stock-based compensation - ​​ - ​​ 68,922​​ - ​​ - ​ - ​​ - ​​ 68,922 Stock options/awards 2,762​​ 14​​ 45,709​​ - ​​ - ​ - ​​ - ​​ 45,723 Unrealized gain (loss), net on available-for-sale securities - ​ - ​ - ​ - ​ (1,041) - ​ - ​ (1,041)Repurchase of common stock - ​​ - ​​ - ​​ - ​​ - ​ (310)​​ (13,830)​​ (13,830)Foreign currency translation - ​​ - ​​ - ​​ - ​​ (71,158)​ - ​​ - ​​ (71,158)Net income - ​​ - ​​ - ​​ 1,377,475​​ - ​ - ​​ - ​​ 1,377,475Balance, December 31, 2021​ 1,280,086​$ 6,400​$ 4,649,420​$ 7,809,549​$ (69,165)​ (221,440)​$ (5,829,253)​$ 6,566,951Stock-based compensation - ​​ - ​​ 63,387​​ - ​​ - ​ - ​​ - ​​ 63,387 Stock options/awards 3,602​​ 18​​ 63,997​​ - ​​ - ​ - ​​ - ​​ 64,015 Unrealized gain (loss), net on available-for-sale securities - ​​ - ​​ - ​​ - ​​ (4,887)​ - ​​ - ​​ (4,887)Repurchase of common stock - ​​ - ​​ - ​​ - ​​ - ​ (17,648)​​ (771,028)​​ (771,028)Foreign currency translation - ​​ - ​​ - ​​ - ​​ (85,021)​ - ​​ - ​​ (85,021)Net income - ​​ - ​​ - ​​ 1,191,624​​ - ​ - ​​ - ​​ 1,191,624Balance, December 31, 2022 1,283,688 $ 6,418 $ 4,776,804 $ 9,001,173 $ (159,073)​ (239,088) $ (6,600,281) $ 7,025,041Stock-based compensation ​ - ​​ - ​​ 67,664​​ - ​​ - ​ - ​​ - ​​ 67,664 Stock options/awards​ 8,904​​ 45​​ 130,222​​ - ​​ - ​ - ​​ - ​​ 130,267 Unrealized gain (loss), net on available-for-sale securities ​ - ​​ - ​​ - ​​ - ​​ 5,085​ - ​​ - ​​ 5,085Retirement of treasury stock ​ (170,000)​​ (850)​​ 425​​ (4,692,425)​​ - ​ 170,000​​ 4,692,850​​ - Repurchase of common stock ​ - ​​ - ​​ - ​​ - ​​ - ​ (11,933)​​ (658,952)​​ (658,952)Foreign currency translation ​ - ​​ - ​​ - ​​ - ​​ 24,241​ - ​​ - ​​ 24,241 Net gains on commodity derivatives ​ - ​​ - ​​ - ​​ - ​​ 4,410​ - ​​ - ​​ 4,410Net income - ​​ - ​​ - ​​ 1,630,988​​ - ​ - ​​ - ​​ 1,630,988Balance, December 31, 2023 1,122,592​$ 5,613​$ 4,975,115​$ 5,939,736​$ (125,337)​ (81,021)​$ (2,566,383)​$ 8,228,744​1Stock Split - The accompanying consolidated financial statements and notes thereto have been retroactively updated to reflect the Stock Split. See Note 1 for additional information.See accompanying notes to consolidated financial statements.​84 Table of Contents Table of Contents Table of Contents MONSTER BEVERAGE CORPORATION AND SUBSIDIARIESCONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITYFOR THE YEARS ENDED DECEMBER 31, 2023, 2022 AND 2021 (In Thousands)​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​Accumulated​​​​​​​​​​​​​​​​​​​​​Other​​​​​​Total​​Common Stock1​Additional​Retained​Comprehensive​Treasury Stock​Stockholders'​ Shares Amount Paid-in Capital1 Earnings (Loss) Income Shares1 Amount EquityBalance, January 1, 2021 1,277,324 $ 6,386 $ 4,534,789 $ 6,432,074 $ 3,034 (221,130) $ (5,815,423) $ 5,160,860Stock-based compensation - ​​ - ​​ 68,922​​ - ​​ - ​ - ​​ - ​​ 68,922 Stock options/awards 2,762​​ 14​​ 45,709​​ - ​​ - ​ - ​​ - ​​ 45,723 Unrealized gain (loss), net on available-for-sale securities - ​ - ​ - ​ - ​ (1,041) - ​ - ​ (1,041)Repurchase of common stock - ​​ - ​​ - ​​ - ​​ - ​ (310)​​ (13,830)​​ (13,830)Foreign currency translation - ​​ - ​​ - ​​ - ​​ (71,158)​ - ​​ - ​​ (71,158)Net income - ​​ - ​​ - ​​ 1,377,475​​ - ​ - ​​ - ​​ 1,377,475Balance, December 31, 2021​ 1,280,086​$ 6,400​$ 4,649,420​$ 7,809,549​$ (69,165)​ (221,440)​$ (5,829,253)​$ 6,566,951Stock-based compensation - ​​ - ​​ 63,387​​ - ​​ - ​ - ​​ - ​​ 63,387 Stock options/awards 3,602​​ 18​​ 63,997​​ - ​​ - ​ - ​​ - ​​ 64,015 Unrealized gain (loss), net on available-for-sale securities - ​​ - ​​ - ​​ - ​​ (4,887)​ - ​​ - ​​ (4,887)Repurchase of common stock - ​​ - ​​ - ​​ - ​​ - ​ (17,648)​​ (771,028)​​ (771,028)Foreign currency translation - ​​ - ​​ - ​​ - ​​ (85,021)​ - ​​ - ​​ (85,021)Net income - ​​ - ​​ - ​​ 1,191,624​​ - ​ - ​​ - ​​ 1,191,624Balance, December 31, 2022 1,283,688 $ 6,418 $ 4,776,804 $ 9,001,173 $ (159,073)​ (239,088) $ (6,600,281) $ 7,025,041Stock-based compensation ​ - ​​ - ​​ 67,664​​ - ​​ - ​ - ​​ - ​​ 67,664 Stock options/awards​ 8,904​​ 45​​ 130,222​​ - ​​ - ​ - ​​ - ​​ 130,267 Unrealized gain (loss), net on available-for-sale securities ​ - ​​ - ​​ - ​​ - ​​ 5,085​ - ​​ - ​​ 5,085Retirement of treasury stock ​ (170,000)​​ (850)​​ 425​​ (4,692,425)​​ - ​ 170,000​​ 4,692,850​​ - Repurchase of common stock ​ - ​​ - ​​ - ​​ - ​​ - ​ (11,933)​​ (658,952)​​ (658,952)Foreign currency translation ​ - ​​ - ​​ - ​​ - ​​ 24,241​ - ​​ - ​​ 24,241 Net gains on commodity derivatives ​ - ​​ - ​​ - ​​ - ​​ 4,410​ - ​​ - ​​ 4,410Net income - ​​ - ​​ - ​​ 1,630,988​​ - ​ - ​​ - ​​ 1,630,988Balance, December 31, 2023 1,122,592​$ 5,613​$ 4,975,115​$ 5,939,736​$ (125,337)​ (81,021)​$ (2,566,383)​$ 8,228,744​1Stock Split - The accompanying consolidated financial statements and notes thereto have been retroactively updated to reflect the Stock Split. See Note 1 for additional information.See accompanying notes to consolidated financial statements.​ **Current (2025):** ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ 2024 2023 2022 Net income, as reported ​ $ 1,509,048 ​ $ 1,630,988 ​ $ 1,191,624 Other comprehensive income (loss), net of tax: ​ ​ ​ ​ ​ ​ ​ ​ ​ Change in foreign currency translation adjustment ​ (140,941) ​ 24,241 ​ (85,021) Change in net unrealized gain (loss) on available-for-sale investments ​ ​ 758 ​ ​ 5,085 ​ ​ (4,887) Change in net gain (loss) on commodity derivatives ​ (3,967) ​ 4,410 ​ - Other comprehensive income (loss) ​ (144,150) ​ 33,736 ​ (89,908) Comprehensive income ​ $ 1,364,898 ​ $ 1,664,724 ​ $ 1,101,716 ​ See accompanying notes to consolidated financial statements. ​ 78 78 Table of ContentsMONSTER BEVERAGE CORPORATION AND SUBSIDIARIESCONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITYFOR THE YEARS ENDED DECEMBER 31, 2024, 2023 AND 2022 (In Thousands)​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​Accumulated​​​​​​​​​​​​​​​​​​​​​Other​​​​​​Total​​Common Stock​Additional​Retained​Comprehensive​Treasury Stock​Stockholders'​ Shares Amount Paid-in Capital Earnings (Loss) Income Shares Amount EquityBalance, January 1, 2022 1,280,086 $ 6,400 $ 4,649,420 $ 7,809,549 $ (69,165) (221,440) $ (5,829,253) $ 6,566,951Stock-based compensation - ​​ - ​​ 63,387​​ - ​​ - ​ - ​​ - ​​ 63,387Stock options/awards 3,602​​ 18​​ 63,997​​ - ​​ - ​ - ​​ - ​​ 64,015Unrealized gain (loss), net on available-for-sale securities - ​ - ​ - ​ - ​ (4,887) - ​ - ​ (4,887)Repurchase of common stock - ​​ - ​​ - ​​ - ​​ - ​ (17,648)​​ (771,028)​​ (771,028)Foreign currency translation - ​​ - ​​ - ​​ - ​​ (85,021)​ - ​​ - ​​ (85,021)Net income - ​​ - ​​ - ​​ 1,191,624​​ - ​ - ​​ - ​​ 1,191,624Balance, December 31, 2022​ 1,283,688​$ 6,418​$ 4,776,804​$ 9,001,173​$ (159,073)​ (239,088)​$ (6,600,281)​$ 7,025,041Stock-based compensation - ​​ - ​​ 67,664​​ - ​​ - ​ - ​​ - ​​ 67,664Stock options/awards 8,904​​ 45​​ 130,222​​ - ​​ - ​ - ​​ - ​​ 130,267Unrealized gain (loss), net on available-for-sale securities - ​​ - ​​ - ​​ - ​​ 5,085​ - ​​ - ​​ 5,085Retirement of treasury stock​ (170,000)​​ (850)​​ 425​​ (4,692,425)​​ - ​ 170,000​​ 4,692,850​​ - Repurchase of common stock - ​​ - ​​ - ​​ - ​​ - ​ (11,933)​​ (658,952)​​ (658,952)Foreign currency translation - ​​ - ​​ - ​​ - ​​ 24,241​ - ​​ - ​​ 24,241Net gain (loss) on commodity derivatives​ - ​​ - ​​ - ​​ - ​​ 4,410​ - ​​ - ​​ 4,410Net income - ​​ - ​​ - ​​ 1,630,988​​ - ​ - ​​ - ​​ 1,630,988Balance, December 31, 2023 1,122,592 $ 5,613 $ 4,975,115 $ 5,939,736 $ (125,337)​ (81,021) $ (2,566,383) $ 8,228,744Stock-based compensation ​ - ​​ - ​​ 90,853​​ - ​​ - ​ - ​​ - ​​ 90,853Stock options/awards​ 3,737​​ 19​​ 78,954​​ - ​​ - ​ - ​​ - ​​ 78,973Unrealized gain (loss), net on available-for-sale securities ​ - ​​ - ​​ - ​​ - ​​ 758​ - ​​ - ​​ 758Repurchase of common stock ​ - ​​ - ​​ - ​​ - ​​ - ​ (72,229)​​ (3,805,750)​​ (3,805,750)Foreign currency translation ​ - ​​ - ​​ - ​​ - ​​ (140,941)​ - ​​ - ​​ (140,941)Net gain (loss) on commodity derivatives ​ - ​​ - ​​ - ​​ - ​​ (3,967)​ - ​​ - ​​ (3,967)Net income - ​​ - ​​ - ​​ 1,509,048​​ - ​ - ​​ - ​​ 1,509,048Balance, December 31, 2024 1,126,329​$ 5,632​$ 5,144,922​$ 7,448,784​$ (269,487)​ (153,250)​$ (6,372,133)​$ 5,957,718​See accompanying notes to consolidated financial statements.​79 Table of Contents Table of Contents Table of Contents MONSTER BEVERAGE CORPORATION AND SUBSIDIARIESCONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITYFOR THE YEARS ENDED DECEMBER 31, 2024, 2023 AND 2022 (In Thousands)​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​Accumulated​​​​​​​​​​​​​​​​​​​​​Other​​​​​​Total​​Common Stock​Additional​Retained​Comprehensive​Treasury Stock​Stockholders'​ Shares Amount Paid-in Capital Earnings (Loss) Income Shares Amount EquityBalance, January 1, 2022 1,280,086 $ 6,400 $ 4,649,420 $ 7,809,549 $ (69,165) (221,440) $ (5,829,253) $ 6,566,951Stock-based compensation - ​​ - ​​ 63,387​​ - ​​ - ​ - ​​ - ​​ 63,387Stock options/awards 3,602​​ 18​​ 63,997​​ - ​​ - ​ - ​​ - ​​ 64,015Unrealized gain (loss), net on available-for-sale securities - ​ - ​ - ​ - ​ (4,887) - ​ - ​ (4,887)Repurchase of common stock - ​​ - ​​ - ​​ - ​​ - ​ (17,648)​​ (771,028)​​ (771,028)Foreign currency translation - ​​ - ​​ - ​​ - ​​ (85,021)​ - ​​ - ​​ (85,021)Net income - ​​ - ​​ - ​​ 1,191,624​​ - ​ - ​​ - ​​ 1,191,624Balance, December 31, 2022​ 1,283,688​$ 6,418​$ 4,776,804​$ 9,001,173​$ (159,073)​ (239,088)​$ (6,600,281)​$ 7,025,041Stock-based compensation - ​​ - ​​ 67,664​​ - ​​ - ​ - ​​ - ​​ 67,664Stock options/awards 8,904​​ 45​​ 130,222​​ - ​​ - ​ - ​​ - ​​ 130,267Unrealized gain (loss), net on available-for-sale securities - ​​ - ​​ - ​​ - ​​ 5,085​ - ​​ - ​​ 5,085Retirement of treasury stock​ (170,000)​​ (850)​​ 425​​ (4,692,425)​​ - ​ 170,000​​ 4,692,850​​ - Repurchase of common stock - ​​ - ​​ - ​​ - ​​ - ​ (11,933)​​ (658,952)​​ (658,952)Foreign currency translation - ​​ - ​​ - ​​ - ​​ 24,241​ - ​​ - ​​ 24,241Net gain (loss) on commodity derivatives​ - ​​ - ​​ - ​​ - ​​ 4,410​ - ​​ - ​​ 4,410Net income - ​​ - ​​ - ​​ 1,630,988​​ - ​ - ​​ - ​​ 1,630,988Balance, December 31, 2023 1,122,592 $ 5,613 $ 4,975,115 $ 5,939,736 $ (125,337)​ (81,021) $ (2,566,383) $ 8,228,744Stock-based compensation ​ - ​​ - ​​ 90,853​​ - ​​ - ​ - ​​ - ​​ 90,853Stock options/awards​ 3,737​​ 19​​ 78,954​​ - ​​ - ​ - ​​ - ​​ 78,973Unrealized gain (loss), net on available-for-sale securities ​ - ​​ - ​​ - ​​ - ​​ 758​ - ​​ - ​​ 758Repurchase of common stock ​ - ​​ - ​​ - ​​ - ​​ - ​ (72,229)​​ (3,805,750)​​ (3,805,750)Foreign currency translation ​ - ​​ - ​​ - ​​ - ​​ (140,941)​ - ​​ - ​​ (140,941)Net gain (loss) on commodity derivatives ​ - ​​ - ​​ - ​​ - ​​ (3,967)​ - ​​ - ​​ (3,967)Net income - ​​ - ​​ - ​​ 1,509,048​​ - ​ - ​​ - ​​ 1,509,048Balance, December 31, 2024 1,126,329​$ 5,632​$ 5,144,922​$ 7,448,784​$ (269,487)​ (153,250)​$ (6,372,133)​$ 5,957,718​See accompanying notes to consolidated financial statements.​ MONSTER BEVERAGE CORPORATION AND SUBSIDIARIESCONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITYFOR THE YEARS ENDED DECEMBER 31, 2024, 2023 AND 2022 (In Thousands)​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​Accumulated​​​​​​​​​​​​​​​​​​​​​Other​​​​​​Total​​Common Stock​Additional​Retained​Comprehensive​Treasury Stock​Stockholders'​ Shares Amount Paid-in Capital Earnings (Loss) Income Shares Amount EquityBalance, January 1, 2022 1,280,086 $ 6,400 $ 4,649,420 $ 7,809,549 $ (69,165) (221,440) $ (5,829,253) $ 6,566,951Stock-based compensation - ​​ - ​​ 63,387​​ - ​​ - ​ - ​​ - ​​ 63,387Stock options/awards 3,602​​ 18​​ 63,997​​ - ​​ - ​ - ​​ - ​​ 64,015Unrealized gain (loss), net on available-for-sale securities - ​ - ​ - ​ - ​ (4,887) - ​ - ​ (4,887)Repurchase of common stock - ​​ - ​​ - ​​ - ​​ - ​ (17,648)​​ (771,028)​​ (771,028)Foreign currency translation - ​​ - ​​ - ​​ - ​​ (85,021)​ - ​​ - ​​ (85,021)Net income - ​​ - ​​ - ​​ 1,191,624​​ - ​ - ​​ - ​​ 1,191,624Balance, December 31, 2022​ 1,283,688​$ 6,418​$ 4,776,804​$ 9,001,173​$ (159,073)​ (239,088)​$ (6,600,281)​$ 7,025,041Stock-based compensation - ​​ - ​​ 67,664​​ - ​​ - ​ - ​​ - ​​ 67,664Stock options/awards 8,904​​ 45​​ 130,222​​ - ​​ - ​ - ​​ - ​​ 130,267Unrealized gain (loss), net on available-for-sale securities - ​​ - ​​ - ​​ - ​​ 5,085​ - ​​ - ​​ 5,085Retirement of treasury stock​ (170,000)​​ (850)​​ 425​​ (4,692,425)​​ - ​ 170,000​​ 4,692,850​​ - Repurchase of common stock - ​​ - ​​ - ​​ - ​​ - ​ (11,933)​​ (658,952)​​ (658,952)Foreign currency translation - ​​ - ​​ - ​​ - ​​ 24,241​ - ​​ - ​​ 24,241Net gain (loss) on commodity derivatives​ - ​​ - ​​ - ​​ - ​​ 4,410​ - ​​ - ​​ 4,410Net income - ​​ - ​​ - ​​ 1,630,988​​ - ​ - ​​ - ​​ 1,630,988Balance, December 31, 2023 1,122,592 $ 5,613 $ 4,975,115 $ 5,939,736 $ (125,337)​ (81,021) $ (2,566,383) $ 8,228,744Stock-based compensation ​ - ​​ - ​​ 90,853​​ - ​​ - ​ - ​​ - ​​ 90,853Stock options/awards​ 3,737​​ 19​​ 78,954​​ - ​​ - ​ - ​​ - ​​ 78,973Unrealized gain (loss), net on available-for-sale securities ​ - ​​ - ​​ - ​​ - ​​ 758​ - ​​ - ​​ 758Repurchase of common stock ​ - ​​ - ​​ - ​​ - ​​ - ​ (72,229)​​ (3,805,750)​​ (3,805,750)Foreign currency translation ​ - ​​ - ​​ - ​​ - ​​ (140,941)​ - ​​ - ​​ (140,941)Net gain (loss) on commodity derivatives ​ - ​​ - ​​ - ​​ - ​​ (3,967)​ - ​​ - ​​ (3,967)Net income - ​​ - ​​ - ​​ 1,509,048​​ - ​ - ​​ - ​​ 1,509,048Balance, December 31, 2024 1,126,329​$ 5,632​$ 5,144,922​$ 7,448,784​$ (269,487)​ (153,250)​$ (6,372,133)​$ 5,957,718​See accompanying notes to consolidated financial statements.​ --- ## Modified: Opinion on the Financial Statements **Key changes:** - Reworded sentence: "We have audited the accompanying consolidated balance sheets of Monster Beverage Corporation and subsidiaries (the Company) as of December 31, 2024 and 2023, the related consolidated statements of income, comprehensive income, stockholders' equity and cash flows for each of the two years in the period ended December 31, 2024, and the related notes and financial statement schedule listed in the Index in Item 15(a) (collectively referred to as the "consolidated financial statements")." - Reworded sentence: "We also have audited, in accordance with the standards of the Public Company Accounting Oversight Board (United States) (PCAOB), the Company's internal control over financial reporting as of December 31, 2024, based on criteria established in Internal Control-Integrated Framework issued by the Committee of Sponsoring Organizations of the Treadway Commission (2013 framework), and our report dated February 28, 2025 expressed an unqualified opinion thereon." **Prior (2024):** We have audited the accompanying consolidated balance sheet of Monster Beverage Corporation and Subsidiaries (the Company) as of December 31, 2023, the related consolidated statements of income, comprehensive income, stockholders' equity and cash flows for the year ended December 31, 2023, and the related notes and financial statement schedule listed in the Index in Item 15(a) (collectively referred to as the "consolidated financial statements"). In our opinion, the consolidated financial statements present fairly, in all material respects, the financial position of the Company at December 31, 2023, and the results of its operations and its cash flows for the year ended December 31, 2023, in conformity with U.S. generally accepted accounting principles. As described in Note 1, in 2023 the Company's Board of Directors approved a two-for-one stock split distributed in the form of a stock dividend, and all references to number of shares and per share information in the consolidated financial statements have been adjusted to reflect the stock split on a retroactive basis. We audited the adjustments that were applied to restate the number of shares and per share information reflected in the 2022 and 2021 consolidated financial statements. Our procedures included (a) agreeing the authorization for the two-for-one stock split to the Company's underlying records obtained from management, and (b) testing the mathematical accuracy of the restated number of shares, basic and diluted earnings per share, common stock repurchased and other applicable disclosures such as equity-based compensation. In our opinion, such adjustments are appropriate and have been properly applied. However, we were not engaged to audit, review, or apply any procedures to the 2022 and 2021 consolidated financial statements of the Company other than with respect to such adjustments and, accordingly, we do not express an opinion or any other form of assurance on the 2022 and 2021 consolidated financial statements taken as a whole. We also have audited, in accordance with the standards of the Public Company Accounting Oversight Board (United States) (PCAOB), the Company's internal control over financial reporting as of December 31, 2023, based on criteria established in Internal Control-Integrated Framework issued by the Committee of Sponsoring Organizations of the Treadway Commission (2013 framework), and our report dated February 29, 2024 expressed an unqualified opinion thereon. **Current (2025):** We have audited the accompanying consolidated balance sheets of Monster Beverage Corporation and subsidiaries (the Company) as of December 31, 2024 and 2023, the related consolidated statements of income, comprehensive income, stockholders' equity and cash flows for each of the two years in the period ended December 31, 2024, and the related notes and financial statement schedule listed in the Index in Item 15(a) (collectively referred to as the "consolidated financial statements"). In our opinion, the consolidated financial statements present fairly, in all material respects, the financial position of the Company at December 31, 2024 and 2023, and the results of its operations and its cash flows for each of the two years in the period ended December 31, 2024, in conformity with U.S. generally accepted accounting principles. We also have audited, in accordance with the standards of the Public Company Accounting Oversight Board (United States) (PCAOB), the Company's internal control over financial reporting as of December 31, 2024, based on criteria established in Internal Control-Integrated Framework issued by the Committee of Sponsoring Organizations of the Treadway Commission (2013 framework), and our report dated February 28, 2025 expressed an unqualified opinion thereon. --- ## Modified: MONSTER BEVERAGE CORPORATION **Key changes:** - Reworded sentence: "Sacks Date: February 28, 2025 ​ ​ Chairman of the Board of ​ ​ ​ ​ Directors and Co-Chief ​ ​ ​ ​ Executive Officer ​ ​ ​ ​ ​ ​ ​ /s/ HILTON H." - Reworded sentence: "Schlosberg ​ Date: February 28, 2025 ​ ​ Vice Chairman of the Board of ​ ​ ​ ​ Directors and Co-Chief ​ ​ ​ ​ Executive Officer ​ ​ ​ 70 70 Table of ContentsPursuant to the requirements of the Securities Exchange Act of 1934, this report has been signed below by the following persons on behalf of the registrant in the capacities and on the dates indicated.Signature Title Date​​​​​/s/ RODNEY C." - Reworded sentence: "SACKS ​ Chairman of the Board of ​ February 28, 2025 Rodney C." - Reworded sentence: "SCHLOSBERG ​ Vice Chairman of the Board of Directors ​ February 28, 2025 Hilton H." - Reworded sentence: "KELLY ​ Chief Financial Officer (principal financial ​ February 28, 2025 Thomas J." **Prior (2024):** /s/ RODNEY C. SACKS Rodney C. Sacks Date: February 29, 2024 ​ ​ Chairman of the Board of ​ ​ ​ ​ Directors and Co-Chief ​ ​ ​ ​ Executive Officer ​ ​ ​ ​ ​ ​ ​ /s/ HILTON H. SCHLOSBERG ​ Hilton H. Schlosberg ​ Date: February 29, 2024 ​ ​ Vice Chairman of the Board of ​ ​ ​ ​ Directors and Co-Chief ​ ​ ​ ​ Executive Officer ​ ​ ​ Pursuant to the requirements of the Securities Exchange Act of 1934, this report has been signed below by the following persons on behalf of the registrant in the capacities and on the dates indicated. Signature Title Date ​ ​ ​ ​ ​ /s/ RODNEY C. SACKS ​ Chairman of the Board of ​ February 29, 2024 Rodney C. Sacks ​ Directors and Co-Chief Executive ​ ​ ​ ​ Officer (principal executive officer) ​ ​ ​ ​ ​ ​ ​ /s/ HILTON H. SCHLOSBERG ​ Vice Chairman of the Board of Directors ​ February 29, 2024 Hilton H. Schlosberg ​ and Co-Chief Executive Officer (principal ​ ​ ​ ​ executive officer) ​ ​ ​ ​ ​ ​ ​ /s/ THOMAS J. KELLY ​ Chief Financial Officer (principal financial ​ February 29, 2024 Thomas J. Kelly ​ officer, principal accounting officer) ​ ​ ​ ​ ​ ​ ​ /s/ ANA DEMEL ​ Director ​ February 29, 2024 Ana Demel ​ ​ ​ ​ ​ ​ ​ ​ ​ /s/ JAMES L. DINKINS ​ Director ​ February 29, 2024 James L. Dinkins ​ ​ ​ ​ ​ ​ ​ ​ ​ /s/ GARY P. FAYARD ​ Director ​ February 29, 2024 Gary P. Fayard ​ ​ ​ ​ ​ ​ ​ ​ ​ /s/ MARK J. HALL ​ Director ​ February 29, 2024 Mark J. Hall ​ ​ ​ ​ ​ ​ ​ ​ ​ /s/ TIFFANY M. HALL ​ Director ​ February 29, 2024 Tiffany M. Hall ​ ​ ​ ​ ​ ​ ​ ​ ​ /s/ JEANNE P. JACKSON ​ Director ​ February 29, 2024 Jeanne P. Jackson ​ ​ ​ ​ ​ ​ ​ ​ ​ /s/ STEVEN G. PIZULA ​ Director ​ February 29, 2024 Steven G. Pizula ​ ​ ​ ​ ​ ​ ​ ​ ​ /s/ MARK S. VIDERGAUZ ​ Director ​ February 29, 2024 Mark S. Vidergauz ​ ​ ​ ​ ​ ​ ​ 76 76 Table of ContentsINDEX TO CONSOLIDATED FINANCIAL STATEMENTS AND FINANCIAL STATEMENT SCHEDULE​​​PageMONSTER BEVERAGE CORPORATION AND SUBSIDIARIES​​​Reports of Independent Registered Public Accounting Firms78​​Consolidated Balance Sheets as of December 31, 2023 and 202281​​Consolidated Statements of Income for the years ended December 31, 2023, 2022 and 202182​​Consolidated Statements of Comprehensive Income for the years ended December 31, 2023, 2022 and 202183​​Consolidated Statements of Stockholders' Equity for the years ended December 31, 2023, 2022 and 202184​​Consolidated Statements of Cash Flows for the years ended December 31, 2023, 2022 and 202185​​Notes to Consolidated Financial Statements87​​Financial Statement Schedule - Valuation and Qualifying Accounts for the years ended December 31, 2023, 2022 and 2021124​​​77 Table of Contents Table of Contents Table of Contents INDEX TO CONSOLIDATED FINANCIAL STATEMENTS AND FINANCIAL STATEMENT SCHEDULE​​​PageMONSTER BEVERAGE CORPORATION AND SUBSIDIARIES​​​Reports of Independent Registered Public Accounting Firms78​​Consolidated Balance Sheets as of December 31, 2023 and 202281​​Consolidated Statements of Income for the years ended December 31, 2023, 2022 and 202182​​Consolidated Statements of Comprehensive Income for the years ended December 31, 2023, 2022 and 202183​​Consolidated Statements of Stockholders' Equity for the years ended December 31, 2023, 2022 and 202184​​Consolidated Statements of Cash Flows for the years ended December 31, 2023, 2022 and 202185​​Notes to Consolidated Financial Statements87​​Financial Statement Schedule - Valuation and Qualifying Accounts for the years ended December 31, 2023, 2022 and 2021124​​​ **Current (2025):** /s/ RODNEY C. SACKS Rodney C. Sacks Date: February 28, 2025 ​ ​ Chairman of the Board of ​ ​ ​ ​ Directors and Co-Chief ​ ​ ​ ​ Executive Officer ​ ​ ​ ​ ​ ​ ​ /s/ HILTON H. SCHLOSBERG ​ Hilton H. Schlosberg ​ Date: February 28, 2025 ​ ​ Vice Chairman of the Board of ​ ​ ​ ​ Directors and Co-Chief ​ ​ ​ ​ Executive Officer ​ ​ ​ 70 70 Table of ContentsPursuant to the requirements of the Securities Exchange Act of 1934, this report has been signed below by the following persons on behalf of the registrant in the capacities and on the dates indicated.Signature Title Date​​​​​/s/ RODNEY C. SACKS​Chairman of the Board of​February 28, 2025Rodney C. Sacks​Directors and Co-Chief Executive​​​​Officer (principal executive officer)​​​​​​​/s/ HILTON H. SCHLOSBERG​Vice Chairman of the Board of Directors​February 28, 2025Hilton H. Schlosberg​and Co-Chief Executive Officer (principal​​​​executive officer)​​​​​​​/s/ THOMAS J. KELLY​Chief Financial Officer (principal financial​February 28, 2025Thomas J. Kelly​officer, principal accounting officer)​​​​​​​/s/ ANA DEMEL​Director​February 28, 2025Ana Demel​​​​​​​​​/s/ JAMES L. DINKINS​Director​February 28, 2025James L. Dinkins​​​​​​​​​/s/ WILLIAM W. DOUGLAS III ​Director​February 28, 2025William W. Douglas III​​​​​​​​​/s/ GARY P. FAYARD​Director​February 28, 2025Gary P. Fayard​​​​​​​​​/s/ MARK J. HALL​Director​February 28, 2025Mark J. Hall​​​​​​​​​/s/ TIFFANY M. HALL​Director​February 28, 2025Tiffany M. Hall​​​​​​​​​/s/ JEANNE P. JACKSON​Director​February 28, 2025Jeanne P. Jackson​​​​​​​​​/s/ STEVEN G. PIZULA​Director​February 28, 2025Steven G. Pizula​​​​​​​​​/s/ MARK S. VIDERGAUZ​Director​February 28, 2025Mark S. Vidergauz​​​​​​​71 Table of Contents Table of Contents Table of Contents Pursuant to the requirements of the Securities Exchange Act of 1934, this report has been signed below by the following persons on behalf of the registrant in the capacities and on the dates indicated.Signature Title Date​​​​​/s/ RODNEY C. SACKS​Chairman of the Board of​February 28, 2025Rodney C. Sacks​Directors and Co-Chief Executive​​​​Officer (principal executive officer)​​​​​​​/s/ HILTON H. SCHLOSBERG​Vice Chairman of the Board of Directors​February 28, 2025Hilton H. Schlosberg​and Co-Chief Executive Officer (principal​​​​executive officer)​​​​​​​/s/ THOMAS J. KELLY​Chief Financial Officer (principal financial​February 28, 2025Thomas J. Kelly​officer, principal accounting officer)​​​​​​​/s/ ANA DEMEL​Director​February 28, 2025Ana Demel​​​​​​​​​/s/ JAMES L. DINKINS​Director​February 28, 2025James L. Dinkins​​​​​​​​​/s/ WILLIAM W. DOUGLAS III ​Director​February 28, 2025William W. Douglas III​​​​​​​​​/s/ GARY P. FAYARD​Director​February 28, 2025Gary P. Fayard​​​​​​​​​/s/ MARK J. HALL​Director​February 28, 2025Mark J. Hall​​​​​​​​​/s/ TIFFANY M. HALL​Director​February 28, 2025Tiffany M. Hall​​​​​​​​​/s/ JEANNE P. JACKSON​Director​February 28, 2025Jeanne P. Jackson​​​​​​​​​/s/ STEVEN G. PIZULA​Director​February 28, 2025Steven G. Pizula​​​​​​​​​/s/ MARK S. VIDERGAUZ​Director​February 28, 2025Mark S. Vidergauz​​​​​​​ Pursuant to the requirements of the Securities Exchange Act of 1934, this report has been signed below by the following persons on behalf of the registrant in the capacities and on the dates indicated.Signature Title Date​​​​​/s/ RODNEY C. SACKS​Chairman of the Board of​February 28, 2025Rodney C. Sacks​Directors and Co-Chief Executive​​​​Officer (principal executive officer)​​​​​​​/s/ HILTON H. SCHLOSBERG​Vice Chairman of the Board of Directors​February 28, 2025Hilton H. Schlosberg​and Co-Chief Executive Officer (principal​​​​executive officer)​​​​​​​/s/ THOMAS J. KELLY​Chief Financial Officer (principal financial​February 28, 2025Thomas J. Kelly​officer, principal accounting officer)​​​​​​​/s/ ANA DEMEL​Director​February 28, 2025Ana Demel​​​​​​​​​/s/ JAMES L. DINKINS​Director​February 28, 2025James L. Dinkins​​​​​​​​​/s/ WILLIAM W. DOUGLAS III ​Director​February 28, 2025William W. Douglas III​​​​​​​​​/s/ GARY P. FAYARD​Director​February 28, 2025Gary P. Fayard​​​​​​​​​/s/ MARK J. HALL​Director​February 28, 2025Mark J. Hall​​​​​​​​​/s/ TIFFANY M. HALL​Director​February 28, 2025Tiffany M. Hall​​​​​​​​​/s/ JEANNE P. JACKSON​Director​February 28, 2025Jeanne P. Jackson​​​​​​​​​/s/ STEVEN G. PIZULA​Director​February 28, 2025Steven G. Pizula​​​​​​​​​/s/ MARK S. VIDERGAUZ​Director​February 28, 2025Mark S. Vidergauz​​​​​​​ Pursuant to the requirements of the Securities Exchange Act of 1934, this report has been signed below by the following persons on behalf of the registrant in the capacities and on the dates indicated. Signature Title Date ​ ​ ​ ​ ​ /s/ RODNEY C. SACKS ​ Chairman of the Board of ​ February 28, 2025 Rodney C. Sacks ​ Directors and Co-Chief Executive ​ ​ ​ ​ Officer (principal executive officer) ​ ​ ​ ​ ​ ​ ​ /s/ HILTON H. SCHLOSBERG ​ Vice Chairman of the Board of Directors ​ February 28, 2025 Hilton H. Schlosberg ​ and Co-Chief Executive Officer (principal ​ ​ ​ ​ executive officer) ​ ​ ​ ​ ​ ​ ​ /s/ THOMAS J. KELLY ​ Chief Financial Officer (principal financial ​ February 28, 2025 Thomas J. Kelly ​ officer, principal accounting officer) ​ ​ ​ ​ ​ ​ ​ /s/ ANA DEMEL ​ Director ​ February 28, 2025 Ana Demel ​ ​ ​ ​ ​ ​ ​ ​ ​ /s/ JAMES L. DINKINS ​ Director ​ February 28, 2025 James L. Dinkins ​ ​ ​ ​ ​ ​ ​ ​ ​ /s/ WILLIAM W. DOUGLAS III ​ Director ​ February 28, 2025 William W. Douglas III ​ ​ ​ ​ ​ ​ ​ ​ ​ /s/ GARY P. FAYARD ​ Director ​ February 28, 2025 Gary P. Fayard ​ ​ ​ ​ ​ ​ ​ ​ ​ /s/ MARK J. HALL ​ Director ​ February 28, 2025 Mark J. Hall ​ ​ ​ ​ ​ ​ ​ ​ ​ /s/ TIFFANY M. HALL ​ Director ​ February 28, 2025 Tiffany M. Hall ​ ​ ​ ​ ​ ​ ​ ​ ​ /s/ JEANNE P. JACKSON ​ Director ​ February 28, 2025 Jeanne P. Jackson ​ ​ ​ ​ ​ ​ ​ ​ ​ /s/ STEVEN G. PIZULA ​ Director ​ February 28, 2025 Steven G. Pizula ​ ​ ​ ​ ​ ​ ​ ​ ​ /s/ MARK S. VIDERGAUZ ​ Director ​ February 28, 2025 Mark S. Vidergauz ​ ​ ​ ​ ​ ​ ​ 71 71 Table of ContentsINDEX TO CONSOLIDATED FINANCIAL STATEMENTS AND FINANCIAL STATEMENT SCHEDULE​​​PageMONSTER BEVERAGE CORPORATION AND SUBSIDIARIES​​​Reports of Independent Registered Public Accounting Firms73​​Consolidated Balance Sheets as of December 31, 2024 and 202376​​Consolidated Statements of Income for the years ended December 31, 2024, 2023 and 202277​​Consolidated Statements of Comprehensive Income for the years ended December 31, 2024, 2023 and 202278​​Consolidated Statements of Stockholders' Equity for the years ended December 31, 2024, 2023 and 202279​​Consolidated Statements of Cash Flows for the years ended December 31, 2024, 2023 and 202280​​Notes to Consolidated Financial Statements82​​Financial Statement Schedule - Valuation and Qualifying Accounts for the years ended December 31, 2024, 2023 and 2022118​​​72 Table of Contents Table of Contents Table of Contents INDEX TO CONSOLIDATED FINANCIAL STATEMENTS AND FINANCIAL STATEMENT SCHEDULE​​​PageMONSTER BEVERAGE CORPORATION AND SUBSIDIARIES​​​Reports of Independent Registered Public Accounting Firms73​​Consolidated Balance Sheets as of December 31, 2024 and 202376​​Consolidated Statements of Income for the years ended December 31, 2024, 2023 and 202277​​Consolidated Statements of Comprehensive Income for the years ended December 31, 2024, 2023 and 202278​​Consolidated Statements of Stockholders' Equity for the years ended December 31, 2024, 2023 and 202279​​Consolidated Statements of Cash Flows for the years ended December 31, 2024, 2023 and 202280​​Notes to Consolidated Financial Statements82​​Financial Statement Schedule - Valuation and Qualifying Accounts for the years ended December 31, 2024, 2023 and 2022118​​​ INDEX TO CONSOLIDATED FINANCIAL STATEMENTS AND FINANCIAL STATEMENT SCHEDULE​​​PageMONSTER BEVERAGE CORPORATION AND SUBSIDIARIES​​​Reports of Independent Registered Public Accounting Firms73​​Consolidated Balance Sheets as of December 31, 2024 and 202376​​Consolidated Statements of Income for the years ended December 31, 2024, 2023 and 202277​​Consolidated Statements of Comprehensive Income for the years ended December 31, 2024, 2023 and 202278​​Consolidated Statements of Stockholders' Equity for the years ended December 31, 2024, 2023 and 202279​​Consolidated Statements of Cash Flows for the years ended December 31, 2024, 2023 and 202280​​Notes to Consolidated Financial Statements82​​Financial Statement Schedule - Valuation and Qualifying Accounts for the years ended December 31, 2024, 2023 and 2022118​​​ --- ## Modified: Balance, December 31, 2024 **Key changes:** - Reworded sentence: "1,126,329 ​ $ 5,632 ​ $ 5,144,922 ​ $ 7,448,784 ​ $ (269,487) ​ (153,250) ​ $ (6,372,133) ​ $ 5,957,718 ​ See accompanying notes to consolidated financial statements." **Prior (2024):** 1,122,592 ​ $ 5,613 ​ $ 4,975,115 ​ $ 5,939,736 ​ $ (125,337) ​ (81,021) ​ $ (2,566,383) ​ $ 8,228,744 ​ 1Stock Split - The accompanying consolidated financial statements and notes thereto have been retroactively updated to reflect the Stock Split. See Note 1 for additional information. See accompanying notes to consolidated financial statements. ​ 84 84 Table of ContentsMONSTER BEVERAGE CORPORATION AND SUBSIDIARIESCONSOLIDATED STATEMENTS OF CASH FLOWSFOR THE YEARS ENDED DECEMBER 31, 2023, 2022 AND 2021 (In Thousands)​​​​​​​​​​​ 2023 2022 2021CASH FLOWS FROM OPERATING ACTIVITIES:​​​​​​​​​Net income​$ 1,630,988​$ 1,191,624​$ 1,377,475Adjustments to reconcile net income to​​​​​​​​​net cash provided by operating activities:​​​​​​​​​Depreciation and amortization​ 68,898​ 61,241​ 50,155Non-cash lease expense​​ 9,043​​ 7,337​​ 4,107Loss (gain) on disposal of property and equipment​ 166​​ (185)​​ (1,013)Gain on Bang Transaction​​ (45,382)​​ - ​​ - Loss on impairment of intangibles​​ 38,700​​ 2,200​​ - Loss on impairment of property and equipment​​ 4,336​​ - ​​ - Stock-based compensation​ 68,836​ 64,109​ 70,483Deferred income taxes​ 2,040​​ 48,182​​ 16,429Effect on cash of changes in operating assets and liabilities​​​​​​​​​net of acquisitions:​​​​​​​​​Accounts receivable​ (163,158)​ (128,981)​ (254,228)Inventories​ 7,898​ (347,712)​ (277,793)Prepaid expenses and other assets​ (10,215)​ (38,268)​ (29,341)Prepaid income taxes​ (18,833)​ (4,439)​ (10,919)Accounts payable​ 112,786​ 49,765​ 114,297Accrued liabilities​ (10,393)​ (30,419)​ 71,586Accrued promotional allowances​ 8,418​ 50,821​ 31,498Accrued compensation​ 13,398​ 3,729​ 7,950Income taxes payable​ 1,748​ (16,860)​ 7,221Other liabilities​​ 22,951​​ (4,540)​​ 492Deferred revenue​ (24,472)​ (19,905)​ (22,658)Net cash provided by operating activities​ 1,717,753​ 887,699​ 1,155,741​​​​​​​​​​CASH FLOWS FROM INVESTING ACTIVITIES:​​​​​​​​​Sales of available-for-sale investments​ 2,029,737​ 2,252,355​ 1,488,599Purchases of available-for-sale investments​​ (1,620,718)​​ (1,847,067)​​ (2,413,143)Acquisition of Bang Energy​​ (363,385)​​ - ​​ - Acquisition of CANarchy, net of cash​ - ​ (329,472)​ - Purchases of property and equipment​ (221,428)​ (188,726)​ (43,868)Proceeds from sale of property and equipment​ 2,520​ 1,313​ 1,328Additions to intangibles​ (13,296)​ (23,427)​ (13,585)Increase in other assets​ (6,825)​ (26,343)​ (11,353)Net cash used in investing activities​ (193,395)​ (161,367)​ (992,022)​​​​​​​​​​CASH FLOWS FROM FINANCING ACTIVITIES:​​​​​​​​​(Payments) borrowings on debt​ (13,914)​ 75​ 2,928Issuance of common stock​ 130,267​ 64,015​ 45,723Purchases of common stock held in treasury​ (658,952)​ (771,028)​ (13,830)Net cash (used in) provided by financing activities​ (542,599)​ (706,938)​ 34,821​​​​​​​​​​Effect of exchange rate changes on cash and cash equivalents​ 8,775​ (38,715)​ (52,491)​​​​​​​​​​NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS​ 990,534​ (19,321)​ 146,049CASH AND CASH EQUIVALENTS, beginning of year​ 1,307,141​ 1,326,462​ 1,180,413CASH AND CASH EQUIVALENTS, end of year​$ 2,297,675​$ 1,307,141​$ 1,326,462​​​​​​​​​​SUPPLEMENTAL INFORMATION:​​​​​​​​​Cash paid during the year for:​​​​​​​​​Interest​$ 363​$ 431​$ 134Income taxes​$ 423,224​$ 379,998​$ 420,521​See accompanying notes to consolidated financial statements.​85 Table of Contents Table of Contents Table of Contents MONSTER BEVERAGE CORPORATION AND SUBSIDIARIESCONSOLIDATED STATEMENTS OF CASH FLOWSFOR THE YEARS ENDED DECEMBER 31, 2023, 2022 AND 2021 (In Thousands)​​​​​​​​​​​ 2023 2022 2021CASH FLOWS FROM OPERATING ACTIVITIES:​​​​​​​​​Net income​$ 1,630,988​$ 1,191,624​$ 1,377,475Adjustments to reconcile net income to​​​​​​​​​net cash provided by operating activities:​​​​​​​​​Depreciation and amortization​ 68,898​ 61,241​ 50,155Non-cash lease expense​​ 9,043​​ 7,337​​ 4,107Loss (gain) on disposal of property and equipment​ 166​​ (185)​​ (1,013)Gain on Bang Transaction​​ (45,382)​​ - ​​ - Loss on impairment of intangibles​​ 38,700​​ 2,200​​ - Loss on impairment of property and equipment​​ 4,336​​ - ​​ - Stock-based compensation​ 68,836​ 64,109​ 70,483Deferred income taxes​ 2,040​​ 48,182​​ 16,429Effect on cash of changes in operating assets and liabilities​​​​​​​​​net of acquisitions:​​​​​​​​​Accounts receivable​ (163,158)​ (128,981)​ (254,228)Inventories​ 7,898​ (347,712)​ (277,793)Prepaid expenses and other assets​ (10,215)​ (38,268)​ (29,341)Prepaid income taxes​ (18,833)​ (4,439)​ (10,919)Accounts payable​ 112,786​ 49,765​ 114,297Accrued liabilities​ (10,393)​ (30,419)​ 71,586Accrued promotional allowances​ 8,418​ 50,821​ 31,498Accrued compensation​ 13,398​ 3,729​ 7,950Income taxes payable​ 1,748​ (16,860)​ 7,221Other liabilities​​ 22,951​​ (4,540)​​ 492Deferred revenue​ (24,472)​ (19,905)​ (22,658)Net cash provided by operating activities​ 1,717,753​ 887,699​ 1,155,741​​​​​​​​​​CASH FLOWS FROM INVESTING ACTIVITIES:​​​​​​​​​Sales of available-for-sale investments​ 2,029,737​ 2,252,355​ 1,488,599Purchases of available-for-sale investments​​ (1,620,718)​​ (1,847,067)​​ (2,413,143)Acquisition of Bang Energy​​ (363,385)​​ - ​​ - Acquisition of CANarchy, net of cash​ - ​ (329,472)​ - Purchases of property and equipment​ (221,428)​ (188,726)​ (43,868)Proceeds from sale of property and equipment​ 2,520​ 1,313​ 1,328Additions to intangibles​ (13,296)​ (23,427)​ (13,585)Increase in other assets​ (6,825)​ (26,343)​ (11,353)Net cash used in investing activities​ (193,395)​ (161,367)​ (992,022)​​​​​​​​​​CASH FLOWS FROM FINANCING ACTIVITIES:​​​​​​​​​(Payments) borrowings on debt​ (13,914)​ 75​ 2,928Issuance of common stock​ 130,267​ 64,015​ 45,723Purchases of common stock held in treasury​ (658,952)​ (771,028)​ (13,830)Net cash (used in) provided by financing activities​ (542,599)​ (706,938)​ 34,821​​​​​​​​​​Effect of exchange rate changes on cash and cash equivalents​ 8,775​ (38,715)​ (52,491)​​​​​​​​​​NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS​ 990,534​ (19,321)​ 146,049CASH AND CASH EQUIVALENTS, beginning of year​ 1,307,141​ 1,326,462​ 1,180,413CASH AND CASH EQUIVALENTS, end of year​$ 2,297,675​$ 1,307,141​$ 1,326,462​​​​​​​​​​SUPPLEMENTAL INFORMATION:​​​​​​​​​Cash paid during the year for:​​​​​​​​​Interest​$ 363​$ 431​$ 134Income taxes​$ 423,224​$ 379,998​$ 420,521​See accompanying notes to consolidated financial statements.​ **Current (2025):** 1,126,329 ​ $ 5,632 ​ $ 5,144,922 ​ $ 7,448,784 ​ $ (269,487) ​ (153,250) ​ $ (6,372,133) ​ $ 5,957,718 ​ See accompanying notes to consolidated financial statements. ​ 79 79 Table of ContentsMONSTER BEVERAGE CORPORATION AND SUBSIDIARIESCONSOLIDATED STATEMENTS OF CASH FLOWSFOR THE YEARS ENDED DECEMBER 31, 2024, 2023 AND 2022 (In Thousands)​​​​​​​​​​​ 2024 2023 2022CASH FLOWS FROM OPERATING ACTIVITIES:​​​​​​​​​Net income​$ 1,509,048​$ 1,630,988​$ 1,191,624Adjustments to reconcile net income to net cash provided by operating activities:​​​​​​​​​Depreciation and amortization​ 80,434​ 68,898​ 61,241Non-cash lease expense​​ 13,521​​ 9,043​​ 7,337Loss (gain) on disposal of property and equipment​ 3,328​​ 166​​ (185)Gain on Bang Transaction​​ - ​​ (45,382)​​ - Impairment of goodwill and other intangibles​​ 127,098​​ 38,700​​ 2,200Impairment of property and equipment​​ 8,184​​ 4,336​​ - Stock-based compensation​ 90,985​ 68,836​ 64,109Deferred income taxes​ (11,705)​​ 2,040​​ 48,182Effect on cash of changes in operating assets and liabilities net of acquisitions:​​​​​​​​​Accounts receivable​ (93,915)​ (163,158)​ (128,981)Inventories​ 211,503​ 7,898​ (347,712)Prepaid expenses and other assets​ 8,959​ (10,215)​ (38,268)Prepaid income taxes​ 3,062​ (18,833)​ (4,439)Accounts payable​ (61,491)​ 112,786​ 49,765Accrued liabilities​ 18,371​ (10,393)​ (30,419)Accrued promotional allowances​ 9,736​ 8,418​ 50,821Accrued compensation​ 5,947​ 13,398​ 3,729Income taxes payable​ 9,438​ 1,748​ (16,860)Other liabilities​​ 13,390​​ 22,951​​ (4,540)Deferred revenue​ (17,360)​ (24,472)​ (19,905)Net cash provided by operating activities​ 1,928,533​ 1,717,753​ 887,699​​​​​​​​​​CASH FLOWS FROM INVESTING ACTIVITIES:​​​​​​​​​Sales of available-for-sale investments​ 1,377,915​ 2,029,737​ 2,252,355Purchases of available-for-sale investments​​ (342,121)​​ (1,620,718)​​ (1,847,067)Acquisition of Bang Energy​​ - ​​ (363,385)​​ - Acquisition of Monster Brewing, net of cash​ - ​ - ​ (329,472)Purchases of property and equipment​ (264,074)​ (221,428)​ (188,726)Proceeds from sale of property and equipment​ 2,732​ 2,520​ 1,313Additions to intangibles​ (42,360)​ (13,296)​ (23,427)Decrease (increase) in other assets​ 1,635​ (6,825)​ (26,343)Net cash provided by (used in) investing activities​ 733,727​ (193,395)​ (161,367)​​​​​​​​​​CASH FLOWS FROM FINANCING ACTIVITIES:​​​​​​​​​(Payments) borrowings on short-term debt​ (8,223)​ (13,914)​ 75Borrowings on credit facilities​​ 750,000​​ - ​​ - Payments on credit facilities​​ (375,000)​​ - ​​ - Payments for debt issuance costs​​ (2,904)​​ - ​​ - Issuance of common stock​ 78,973​ 130,267​ 64,015Purchases of common stock held in treasury​ (3,771,875)​ (658,952)​ (771,028)Net cash used in financing activities​ (3,329,029)​ (542,599)​ (706,938)​​​​​​​​​​Effect of exchange rate changes on cash and cash equivalents​ (97,619)​ 8,775​ (38,715)​​​​​​​​​​NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS​ (764,388)​ 990,534​ (19,321)CASH AND CASH EQUIVALENTS, beginning of year​ 2,297,675​ 1,307,141​ 1,326,462CASH AND CASH EQUIVALENTS, end of year​$ 1,533,287​$ 2,297,675​$ 1,307,141​​​​​​​​​​SUPPLEMENTAL INFORMATION:​​​​​​​​​Cash paid during the year for:​​​​​​​​​Interest​$ 25,270​$ 363​$ 431Income taxes​$ 476,223​$ 423,224​$ 379,998​See accompanying notes to consolidated financial statements.​80 Table of Contents Table of Contents Table of Contents MONSTER BEVERAGE CORPORATION AND SUBSIDIARIESCONSOLIDATED STATEMENTS OF CASH FLOWSFOR THE YEARS ENDED DECEMBER 31, 2024, 2023 AND 2022 (In Thousands)​​​​​​​​​​​ 2024 2023 2022CASH FLOWS FROM OPERATING ACTIVITIES:​​​​​​​​​Net income​$ 1,509,048​$ 1,630,988​$ 1,191,624Adjustments to reconcile net income to net cash provided by operating activities:​​​​​​​​​Depreciation and amortization​ 80,434​ 68,898​ 61,241Non-cash lease expense​​ 13,521​​ 9,043​​ 7,337Loss (gain) on disposal of property and equipment​ 3,328​​ 166​​ (185)Gain on Bang Transaction​​ - ​​ (45,382)​​ - Impairment of goodwill and other intangibles​​ 127,098​​ 38,700​​ 2,200Impairment of property and equipment​​ 8,184​​ 4,336​​ - Stock-based compensation​ 90,985​ 68,836​ 64,109Deferred income taxes​ (11,705)​​ 2,040​​ 48,182Effect on cash of changes in operating assets and liabilities net of acquisitions:​​​​​​​​​Accounts receivable​ (93,915)​ (163,158)​ (128,981)Inventories​ 211,503​ 7,898​ (347,712)Prepaid expenses and other assets​ 8,959​ (10,215)​ (38,268)Prepaid income taxes​ 3,062​ (18,833)​ (4,439)Accounts payable​ (61,491)​ 112,786​ 49,765Accrued liabilities​ 18,371​ (10,393)​ (30,419)Accrued promotional allowances​ 9,736​ 8,418​ 50,821Accrued compensation​ 5,947​ 13,398​ 3,729Income taxes payable​ 9,438​ 1,748​ (16,860)Other liabilities​​ 13,390​​ 22,951​​ (4,540)Deferred revenue​ (17,360)​ (24,472)​ (19,905)Net cash provided by operating activities​ 1,928,533​ 1,717,753​ 887,699​​​​​​​​​​CASH FLOWS FROM INVESTING ACTIVITIES:​​​​​​​​​Sales of available-for-sale investments​ 1,377,915​ 2,029,737​ 2,252,355Purchases of available-for-sale investments​​ (342,121)​​ (1,620,718)​​ (1,847,067)Acquisition of Bang Energy​​ - ​​ (363,385)​​ - Acquisition of Monster Brewing, net of cash​ - ​ - ​ (329,472)Purchases of property and equipment​ (264,074)​ (221,428)​ (188,726)Proceeds from sale of property and equipment​ 2,732​ 2,520​ 1,313Additions to intangibles​ (42,360)​ (13,296)​ (23,427)Decrease (increase) in other assets​ 1,635​ (6,825)​ (26,343)Net cash provided by (used in) investing activities​ 733,727​ (193,395)​ (161,367)​​​​​​​​​​CASH FLOWS FROM FINANCING ACTIVITIES:​​​​​​​​​(Payments) borrowings on short-term debt​ (8,223)​ (13,914)​ 75Borrowings on credit facilities​​ 750,000​​ - ​​ - Payments on credit facilities​​ (375,000)​​ - ​​ - Payments for debt issuance costs​​ (2,904)​​ - ​​ - Issuance of common stock​ 78,973​ 130,267​ 64,015Purchases of common stock held in treasury​ (3,771,875)​ (658,952)​ (771,028)Net cash used in financing activities​ (3,329,029)​ (542,599)​ (706,938)​​​​​​​​​​Effect of exchange rate changes on cash and cash equivalents​ (97,619)​ 8,775​ (38,715)​​​​​​​​​​NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS​ (764,388)​ 990,534​ (19,321)CASH AND CASH EQUIVALENTS, beginning of year​ 2,297,675​ 1,307,141​ 1,326,462CASH AND CASH EQUIVALENTS, end of year​$ 1,533,287​$ 2,297,675​$ 1,307,141​​​​​​​​​​SUPPLEMENTAL INFORMATION:​​​​​​​​​Cash paid during the year for:​​​​​​​​​Interest​$ 25,270​$ 363​$ 431Income taxes​$ 476,223​$ 423,224​$ 379,998​See accompanying notes to consolidated financial statements.​ MONSTER BEVERAGE CORPORATION AND SUBSIDIARIESCONSOLIDATED STATEMENTS OF CASH FLOWSFOR THE YEARS ENDED DECEMBER 31, 2024, 2023 AND 2022 (In Thousands)​​​​​​​​​​​ 2024 2023 2022CASH FLOWS FROM OPERATING ACTIVITIES:​​​​​​​​​Net income​$ 1,509,048​$ 1,630,988​$ 1,191,624Adjustments to reconcile net income to net cash provided by operating activities:​​​​​​​​​Depreciation and amortization​ 80,434​ 68,898​ 61,241Non-cash lease expense​​ 13,521​​ 9,043​​ 7,337Loss (gain) on disposal of property and equipment​ 3,328​​ 166​​ (185)Gain on Bang Transaction​​ - ​​ (45,382)​​ - Impairment of goodwill and other intangibles​​ 127,098​​ 38,700​​ 2,200Impairment of property and equipment​​ 8,184​​ 4,336​​ - Stock-based compensation​ 90,985​ 68,836​ 64,109Deferred income taxes​ (11,705)​​ 2,040​​ 48,182Effect on cash of changes in operating assets and liabilities net of acquisitions:​​​​​​​​​Accounts receivable​ (93,915)​ (163,158)​ (128,981)Inventories​ 211,503​ 7,898​ (347,712)Prepaid expenses and other assets​ 8,959​ (10,215)​ (38,268)Prepaid income taxes​ 3,062​ (18,833)​ (4,439)Accounts payable​ (61,491)​ 112,786​ 49,765Accrued liabilities​ 18,371​ (10,393)​ (30,419)Accrued promotional allowances​ 9,736​ 8,418​ 50,821Accrued compensation​ 5,947​ 13,398​ 3,729Income taxes payable​ 9,438​ 1,748​ (16,860)Other liabilities​​ 13,390​​ 22,951​​ (4,540)Deferred revenue​ (17,360)​ (24,472)​ (19,905)Net cash provided by operating activities​ 1,928,533​ 1,717,753​ 887,699​​​​​​​​​​CASH FLOWS FROM INVESTING ACTIVITIES:​​​​​​​​​Sales of available-for-sale investments​ 1,377,915​ 2,029,737​ 2,252,355Purchases of available-for-sale investments​​ (342,121)​​ (1,620,718)​​ (1,847,067)Acquisition of Bang Energy​​ - ​​ (363,385)​​ - Acquisition of Monster Brewing, net of cash​ - ​ - ​ (329,472)Purchases of property and equipment​ (264,074)​ (221,428)​ (188,726)Proceeds from sale of property and equipment​ 2,732​ 2,520​ 1,313Additions to intangibles​ (42,360)​ (13,296)​ (23,427)Decrease (increase) in other assets​ 1,635​ (6,825)​ (26,343)Net cash provided by (used in) investing activities​ 733,727​ (193,395)​ (161,367)​​​​​​​​​​CASH FLOWS FROM FINANCING ACTIVITIES:​​​​​​​​​(Payments) borrowings on short-term debt​ (8,223)​ (13,914)​ 75Borrowings on credit facilities​​ 750,000​​ - ​​ - Payments on credit facilities​​ (375,000)​​ - ​​ - Payments for debt issuance costs​​ (2,904)​​ - ​​ - Issuance of common stock​ 78,973​ 130,267​ 64,015Purchases of common stock held in treasury​ (3,771,875)​ (658,952)​ (771,028)Net cash used in financing activities​ (3,329,029)​ (542,599)​ (706,938)​​​​​​​​​​Effect of exchange rate changes on cash and cash equivalents​ (97,619)​ 8,775​ (38,715)​​​​​​​​​​NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS​ (764,388)​ 990,534​ (19,321)CASH AND CASH EQUIVALENTS, beginning of year​ 2,297,675​ 1,307,141​ 1,326,462CASH AND CASH EQUIVALENTS, end of year​$ 1,533,287​$ 2,297,675​$ 1,307,141​​​​​​​​​​SUPPLEMENTAL INFORMATION:​​​​​​​​​Cash paid during the year for:​​​​​​​​​Interest​$ 25,270​$ 363​$ 431Income taxes​$ 476,223​$ 423,224​$ 379,998​See accompanying notes to consolidated financial statements.​ --- ## Modified: Performance Graph **Key changes:** - Reworded sentence: "The following graph shows a five-year comparison of cumulative total returns:1 ​ ​ 1Annual return assumes reinvestment of dividends." **Prior (2024):** We implemented pricing actions including (i) price increases effective April 1, 2022 (limited pack sizes), September 1, 2022 and April 1, 2023 (limited pack sizes) in the United States, (ii) price increases at various times in certain international markets during 2022 and 2023 and (iii) decreased promotional allowances as a percentage of net sales in certain markets during 2022 and 2023 (collectively, the "Pricing Actions"). The Pricing Actions positively impacted gross profit margins in 2023. 45 45 Table of ContentsGross Profit Margins​During the year ended December 31, 2023, we experienced an improvement in our gross profit margins as compared to the year ended December 31, 2022. This improvement was primarily attributable to (i) the Pricing Actions, (ii) our decreased reliance on imported cans and (iii) improved finished product inventory levels in closer proximity to our customers, resulting in a reduction of long-distance freight costs.​During the COVID-19 pandemic we prioritized ensuring product availability for our customers and consumers. This strategic direction remained in place throughout the global supply chain challenges and disruptions, despite adversely impacting our profitability. We continue to stand by our strategy to ensure product availability and solidify the continued long-term growth of our brands.​We continue to address the controllable challenges in our supply chain.Liquidity and Capital Resources As of the date of this filing, we expect to maintain substantial liquidity as we manage through the current environment as described in the "Liquidity and Capital Resources" section below.Our BusinessOverviewWe develop, market, sell and distribute energy drink beverages and concentrates for energy drink beverages, primarily under the following brand names:●Monster Energy®●Monster Energy Ultra®●Monster Rehab®●Monster Energy® Nitro●Java Monster®●Punch Monster®●Juice Monster®●Reign Total Body Fuel®●Reign Inferno® Thermogenic Fuel●Reign Storm®●Bang Energy®●NOS®●Full Throttle® ●Burn®●Mother®●Nalu®●Ultra Energy®●Play® and Power Play® (stylized)●Relentless®●BPM®●BU®●Gladiator®●Samurai®●Live+®●Predator®●Fury®​We also develop, market, sell and distribute craft beers, FMBs and hard seltzers under a number of brands, including Jai Alai® IPA, Florida ManTM IPA, Dale's Pale Ale®, Wild Basin® Hard Seltzers, Dallas Blonde®, Deep EllumTM IPA, Perrin Brewing CompanyTM Black Ale, Hop Rising® Double IPA, Wasatch® Apricot Hefeweizen, The Beast Unleashed®, Nasty BeastTM 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.​Our net sales of $7.14 billion for the year ended December 31, 2023 represented record annual net sales. Net changes in foreign currency exchange rates had an unfavorable impact on net sales of approximately $146.7 million for the year ended December 31, 2023.46 Table of Contents Table of Contents Table of Contents Gross Profit Margins​During the year ended December 31, 2023, we experienced an improvement in our gross profit margins as compared to the year ended December 31, 2022. This improvement was primarily attributable to (i) the Pricing Actions, (ii) our decreased reliance on imported cans and (iii) improved finished product inventory levels in closer proximity to our customers, resulting in a reduction of long-distance freight costs.​During the COVID-19 pandemic we prioritized ensuring product availability for our customers and consumers. This strategic direction remained in place throughout the global supply chain challenges and disruptions, despite adversely impacting our profitability. We continue to stand by our strategy to ensure product availability and solidify the continued long-term growth of our brands.​We continue to address the controllable challenges in our supply chain.Liquidity and Capital Resources As of the date of this filing, we expect to maintain substantial liquidity as we manage through the current environment as described in the "Liquidity and Capital Resources" section below.Our BusinessOverviewWe develop, market, sell and distribute energy drink beverages and concentrates for energy drink beverages, primarily under the following brand names:●Monster Energy®●Monster Energy Ultra®●Monster Rehab®●Monster Energy® Nitro●Java Monster®●Punch Monster®●Juice Monster®●Reign Total Body Fuel®●Reign Inferno® Thermogenic Fuel●Reign Storm®●Bang Energy®●NOS®●Full Throttle® ●Burn®●Mother®●Nalu®●Ultra Energy®●Play® and Power Play® (stylized)●Relentless®●BPM®●BU®●Gladiator®●Samurai®●Live+®●Predator®●Fury®​We also develop, market, sell and distribute craft beers, FMBs and hard seltzers under a number of brands, including Jai Alai® IPA, Florida ManTM IPA, Dale's Pale Ale®, Wild Basin® Hard Seltzers, Dallas Blonde®, Deep EllumTM IPA, Perrin Brewing CompanyTM Black Ale, Hop Rising® Double IPA, Wasatch® Apricot Hefeweizen, The Beast Unleashed®, Nasty BeastTM 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.​Our net sales of $7.14 billion for the year ended December 31, 2023 represented record annual net sales. Net changes in foreign currency exchange rates had an unfavorable impact on net sales of approximately $146.7 million for the year ended December 31, 2023. **Current (2025):** The following graph shows a five-year comparison of cumulative total returns:1 ​ ​ 1Annual return assumes reinvestment of dividends. Cumulative total return assumes an initial investment of $100 on December 31, 2019. The Company's self-selected peer group is comprised of TCCC, Keurig Dr. Pepper Inc., Constellation Brands, Inc., Molson Coors Beverage Company and PepsiCo, Inc. ITEM 6.[RESERVED] ​ ITEM 7.MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS The following Management's Discussion and Analysis of Financial Condition and Results of Operations ("MD&A") is provided as a supplement to - and should be read in conjunction with - our financial statements and the accompanying notes ("Notes") included in Part II, Item 8 of this Form 10-K. This discussion contains forward-looking statements that are based on management's current expectations, estimates and projections about our business and operations. Our actual results may differ materially from those currently anticipated and expressed in such forward-looking statements. See "Forward-Looking Statements" and "Part I, Item 1A - Risk Factors." This overview provides our perspective on the individual sections of MD&A. MD&A includes the following sections: 41 41 Table of Contents●Accounting Policies and Pronouncements - a discussion of accounting policies that require critical judgments and estimates including newly issued accounting pronouncements;●Forward-Looking Statements - cautionary information about forward-looking statements and a description of certain risks and uncertainties that could cause our actual results to differ materially from the Company's historical results or our current expectations or projections; and●Market Risks - information about market risks and risk management. (See "Forward-Looking Statements" and "Part II, Item 7A - Qualitative and Quantitative Disclosures about Market Risks").Pricing ActionsWe implemented price increases (i) effective November 1, 2024 (for core brands and packages) and April 1, 2023 (for limited pack sizes) in the United States, and (ii) at various times in certain international markets during 2024 and 2023 (collectively, the "Pricing Actions"). The Pricing Actions positively impacted gross profit margins in 2024 as compared to 2023.Liquidity and Capital Resources As of the date of this filing, we expect to maintain sufficient liquidity as we manage through the current environment as described in the "Liquidity and Capital Resources" section below.Our BusinessOverviewWe develop, market, sell and distribute energy drink beverages and concentrates for energy drink beverages, primarily under the following brand names:●Monster Energy®●Monster Energy Ultra®●Rehab Monster®●Monster Energy® Nitro●Java Monster®●Punch Monster®●Juice Monster®●Reign Total Body Fuel®●Reign Inferno® Thermogenic Fuel●Reign Storm®●Bang Energy®●NOS®●Full Throttle® ●Burn®●Mother®●Nalu®●Ultra Energy®●Play® and Power Play® (stylized)●Relentless®●BPM®●BU®●Samurai®●Live+®●Predator®●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® IPA, Dale's Pale Ale®, Wild Basin® Hard Seltzers, Dallas Blonde®, Deep EllumTM IPA, Perrin Brewing Company® Black Ale, Hop Rising® Double IPA, Wasatch® Apricot Hefeweizen, The BeastTM, Nasty Beast® 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.Our net sales of $7.49 billion for the year ended December 31, 2024 represented record annual net sales. Net changes in foreign currency exchange rates had an unfavorable impact on net sales of approximately $247.1 million for the year ended December 31, 2024. Net sales on a foreign currency adjusted basis increased 8.4% for the year ended December 31, 2024.42 Table of Contents Table of Contents Table of Contents ●Accounting Policies and Pronouncements - a discussion of accounting policies that require critical judgments and estimates including newly issued accounting pronouncements;●Forward-Looking Statements - cautionary information about forward-looking statements and a description of certain risks and uncertainties that could cause our actual results to differ materially from the Company's historical results or our current expectations or projections; and●Market Risks - information about market risks and risk management. (See "Forward-Looking Statements" and "Part II, Item 7A - Qualitative and Quantitative Disclosures about Market Risks").Pricing ActionsWe implemented price increases (i) effective November 1, 2024 (for core brands and packages) and April 1, 2023 (for limited pack sizes) in the United States, and (ii) at various times in certain international markets during 2024 and 2023 (collectively, the "Pricing Actions"). The Pricing Actions positively impacted gross profit margins in 2024 as compared to 2023.Liquidity and Capital Resources As of the date of this filing, we expect to maintain sufficient liquidity as we manage through the current environment as described in the "Liquidity and Capital Resources" section below.Our BusinessOverviewWe develop, market, sell and distribute energy drink beverages and concentrates for energy drink beverages, primarily under the following brand names:●Monster Energy®●Monster Energy Ultra®●Rehab Monster®●Monster Energy® Nitro●Java Monster®●Punch Monster®●Juice Monster®●Reign Total Body Fuel®●Reign Inferno® Thermogenic Fuel●Reign Storm®●Bang Energy®●NOS®●Full Throttle® ●Burn®●Mother®●Nalu®●Ultra Energy®●Play® and Power Play® (stylized)●Relentless®●BPM®●BU®●Samurai®●Live+®●Predator®●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® IPA, Dale's Pale Ale®, Wild Basin® Hard Seltzers, Dallas Blonde®, Deep EllumTM IPA, Perrin Brewing Company® Black Ale, Hop Rising® Double IPA, Wasatch® Apricot Hefeweizen, The BeastTM, Nasty Beast® 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.Our net sales of $7.49 billion for the year ended December 31, 2024 represented record annual net sales. Net changes in foreign currency exchange rates had an unfavorable impact on net sales of approximately $247.1 million for the year ended December 31, 2024. Net sales on a foreign currency adjusted basis increased 8.4% for the year ended December 31, 2024. ●Accounting Policies and Pronouncements - a discussion of accounting policies that require critical judgments and estimates including newly issued accounting pronouncements;●Forward-Looking Statements - cautionary information about forward-looking statements and a description of certain risks and uncertainties that could cause our actual results to differ materially from the Company's historical results or our current expectations or projections; and●Market Risks - information about market risks and risk management. (See "Forward-Looking Statements" and "Part II, Item 7A - Qualitative and Quantitative Disclosures about Market Risks").Pricing ActionsWe implemented price increases (i) effective November 1, 2024 (for core brands and packages) and April 1, 2023 (for limited pack sizes) in the United States, and (ii) at various times in certain international markets during 2024 and 2023 (collectively, the "Pricing Actions"). The Pricing Actions positively impacted gross profit margins in 2024 as compared to 2023.Liquidity and Capital Resources As of the date of this filing, we expect to maintain sufficient liquidity as we manage through the current environment as described in the "Liquidity and Capital Resources" section below.Our BusinessOverviewWe develop, market, sell and distribute energy drink beverages and concentrates for energy drink beverages, primarily under the following brand names:●Monster Energy®●Monster Energy Ultra®●Rehab Monster®●Monster Energy® Nitro●Java Monster®●Punch Monster®●Juice Monster®●Reign Total Body Fuel®●Reign Inferno® Thermogenic Fuel●Reign Storm®●Bang Energy®●NOS®●Full Throttle® ●Burn®●Mother®●Nalu®●Ultra Energy®●Play® and Power Play® (stylized)●Relentless®●BPM®●BU®●Samurai®●Live+®●Predator®●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® IPA, Dale's Pale Ale®, Wild Basin® Hard Seltzers, Dallas Blonde®, Deep EllumTM IPA, Perrin Brewing Company® Black Ale, Hop Rising® Double IPA, Wasatch® Apricot Hefeweizen, The BeastTM, Nasty Beast® 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.Our net sales of $7.49 billion for the year ended December 31, 2024 represented record annual net sales. Net changes in foreign currency exchange rates had an unfavorable impact on net sales of approximately $247.1 million for the year ended December 31, 2024. Net sales on a foreign currency adjusted basis increased 8.4% for the year ended December 31, 2024. --- ## Modified: LIABILITIES AND STOCKHOLDERS' EQUITY **Key changes:** - Reworded sentence: "​ ​ ​ ​ ​ ​ CURRENT LIABILITIES: ​ ​ ​ ​ ​ ​ Accounts payable ​ $ 466,775 $ 564,379 Accrued liabilities ​ 220,764 183,988 Accrued promotional allowances ​ 267,711 269,061 Deferred revenue ​ 45,809 41,914 Accrued compensation ​ 92,454 87,392 Income taxes payable ​ 4,006 14,955 Total current liabilities ​ 1,097,519 1,161,689 ​ ​ ​ ​ ​ ​ ​ DEFERRED REVENUE ​ 179,008 204,251 ​ ​ ​ ​ ​ ​ ​ OTHER LIABILITIES ​ ​ 110,893 ​ ​ 91,838 ​ ​ ​ ​ ​ ​ ​ LONG-TERM DEBT ​ ​ 373,951 ​ ​ - ​ ​ ​ ​ ​ ​ ​ COMMITMENTS AND CONTINGENCIES (Note 13) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ STOCKHOLDERS' EQUITY: ​ ​ ​ ​ ​ ​ Common stock - $0.005 par value; 5,000,000 shares authorized;1,126,329 shares issued and 973,079 shares outstanding as of December 31, 2024;1,122,592 shares issued and 1,041,571 shares outstanding as of December 31, 2023 ​ ​ 5,632 ​ ​ 5,613 Additional paid-in capital ​ 5,144,922 4,975,115 Retained earnings ​ 7,448,784 5,939,736 Accumulated other comprehensive loss ​ (269,487) (125,337) Common stock in treasury, at cost; 153,250 shares and 81,021 shares as of December 31, 2024 and December 31, 2023, respectively ​ (6,372,133) (2,566,383) Total stockholders' equity ​ 5,957,718 8,228,744" **Prior (2024):** ​ ​ ​ ​ ​ ​ CURRENT LIABILITIES: ​ ​ ​ ​ ​ ​ Accounts payable ​ $ 564,379 $ 444,265 Accrued liabilities ​ 183,988 172,991 Accrued promotional allowances ​ 269,061 255,631 Deferred revenue ​ 41,914 43,311 Accrued compensation ​ 87,392 72,463 Income taxes payable ​ 14,955 13,317 Total current liabilities ​ 1,161,689 1,001,978 ​ ​ ​ ​ ​ ​ ​ DEFERRED REVENUE ​ 204,251 223,800 ​ ​ ​ ​ ​ ​ ​ OTHER LIABILITIES ​ ​ 91,838 ​ ​ 42,286 ​ ​ ​ ​ ​ ​ ​ COMMITMENTS AND CONTINGENCIES (Note 13) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ STOCKHOLDERS' EQUITY1: ​ ​ ​ ​ ​ ​ Common stock - $0.005 par value; 5,000,000 shares authorized; 1,122,592 shares issued and 1,041,571 shares outstanding as of December 31, 2023;1,283,688 shares issued and 1,044,600 shares outstanding as of December 31, 2022 ​ ​ 5,613 ​ ​ 6,418 Additional paid-in capital ​ 4,975,115 4,776,804 Retained earnings ​ 5,939,736 9,001,173 Accumulated other comprehensive loss ​ (125,337) (159,073) Common stock in treasury, at cost; 81,021 shares and 239,088 shares as of December 31, 2023 and December 31, 2022, respectively ​ (2,566,383) (6,600,281) Total stockholders' equity ​ 8,228,744 7,025,041 **Current (2025):** ​ ​ ​ ​ ​ ​ CURRENT LIABILITIES: ​ ​ ​ ​ ​ ​ Accounts payable ​ $ 466,775 $ 564,379 Accrued liabilities ​ 220,764 183,988 Accrued promotional allowances ​ 267,711 269,061 Deferred revenue ​ 45,809 41,914 Accrued compensation ​ 92,454 87,392 Income taxes payable ​ 4,006 14,955 Total current liabilities ​ 1,097,519 1,161,689 ​ ​ ​ ​ ​ ​ ​ DEFERRED REVENUE ​ 179,008 204,251 ​ ​ ​ ​ ​ ​ ​ OTHER LIABILITIES ​ ​ 110,893 ​ ​ 91,838 ​ ​ ​ ​ ​ ​ ​ LONG-TERM DEBT ​ ​ 373,951 ​ ​ - ​ ​ ​ ​ ​ ​ ​ COMMITMENTS AND CONTINGENCIES (Note 13) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ STOCKHOLDERS' EQUITY: ​ ​ ​ ​ ​ ​ Common stock - $0.005 par value; 5,000,000 shares authorized;1,126,329 shares issued and 973,079 shares outstanding as of December 31, 2024;1,122,592 shares issued and 1,041,571 shares outstanding as of December 31, 2023 ​ ​ 5,632 ​ ​ 5,613 Additional paid-in capital ​ 5,144,922 4,975,115 Retained earnings ​ 7,448,784 5,939,736 Accumulated other comprehensive loss ​ (269,487) (125,337) Common stock in treasury, at cost; 153,250 shares and 81,021 shares as of December 31, 2024 and December 31, 2023, respectively ​ (6,372,133) (2,566,383) Total stockholders' equity ​ 5,957,718 8,228,744 --- ## Modified: (Tabular Dollars in Thousands, Except Per Share Amounts) **Key changes:** - Reworded sentence: "​ Recent Accounting Pronouncements - In November 2023, the FASB issued Accounting Standards Update ("ASU") 2023-07, Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosures." - Reworded sentence: "The amendments in ASU 2023-09 are effective for fiscal years beginning after December 15, 2024." - Reworded sentence: "The Company is currently evaluating the impact ASU 2023-09 will have on its consolidated financial statements.In November 2024, the FASB issued ASU 2024-03, Disaggregation of Income Statement Expenses." - Reworded sentence: "The acquired assets primarily include the Bang Energy® drinks business and a beverage production facility in Phoenix, AZ." - Reworded sentence: "The amendments in ASU 2023-09 are effective for fiscal years beginning after December 15, 2024." **Prior (2024):** ​ 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. ACQUISITIONS Bang Energy​On July 31, 2023, a subsidiary of the Company, Blast Asset Acquisition LLC, completed its acquisition of substantially all of the assets of Vital Pharmaceuticals, Inc. and certain of its affiliates (collectively, "Bang Energy") (the "Bang Transaction"). The acquired assets primarily include the Bang Energy® drinks business and a beverage production facility in Phoenix, AZ.​The Company accounted for the Bang Transaction in accordance with FASB ASC 805. Under the acquisition method of accounting, the Company allocated the purchase price of the acquisition to identifiable assets acquired and liabilities assumed based on their estimated fair values as of the acquisition date. During the year ended December 31, 2023, in connection with the Bang Transaction, the Company recorded a gain of $45.4 million in interest and other income (expense), net within the consolidated statements of income and reported within the Corporate and Unallocated segment (the "Bang Transaction Gain"). During the year ended December 31, 2023, the Company incurred $16.1 million of acquisition costs related to the Bang Transaction. Acquisition costs are included in operating expenses within the consolidated statements of income.The following table summarizes the final fair value allocations of the Bang Transaction:​​​​​​​​​​Identifiable ​​​​​Assets​​​​​Acquired and ​​​​​(Liabilities)​​Consideration ​ Assumed TransferredIntangibles - trademarks (non-amortizing)​$ 209,000​$ - Intangibles - customer relationships (amortizing) ​ 23,000 ​ - Property and equipment, net ​ 143,200 ​ - Inventory ​ 30,496 ​ - Right-of-use assets ​ 12,523 ​ - Operating lease liabilities ​ (12,523) ​ - Working capital (excluding inventory) ​ 2,871 ​ - Other ​ 200 ​ - Cash ​ - ​ 363,385Bang Transaction Gain ​ - ​ 45,382Total​$ 408,767​$ 408,767​ 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. **Current (2025):** ​ Recent Accounting Pronouncements - In November 2023, the FASB issued Accounting Standards Update ("ASU") 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 2023-07 are effective for fiscal years beginning after December 15, 2023. The Company adopted ASU 2023-07 on January 1, 2024, which did not have a material impact on the Company's financial position, results of operations and liquidity.In December 2023, the FASB issued ASU 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 2023-09 are effective for fiscal years beginning after December 15, 2024. Early adoption is permitted. The Company is currently evaluating the impact ASU 2023-09 will have on its consolidated financial statements.In November 2024, the FASB issued ASU 2024-03, Disaggregation of Income Statement Expenses. The amendments in this update require the Company to disaggregate key expense categories such as purchases of inventory, employee compensation, depreciation and intangible asset amortization within its financial statements. The amendments in ASU 2024-03 are effective for fiscal years beginning after December 15, 2026. Early adoption is permitted. The Company is currently evaluating the impact ASU 2024-03 will have on its consolidated financial statements.2.ACQUISITION On July 31, 2023, a subsidiary of the Company, Blast Asset Acquisition LLC, completed its acquisition of substantially all of the assets of Vital Pharmaceuticals, Inc. and certain of its affiliates (collectively, "Bang Energy") (the "Bang Transaction"). The acquired assets primarily include the Bang Energy® drinks business and a beverage production facility in Phoenix, AZ. The Company accounted for the Bang Transaction in accordance with FASB ASC 805.In accordance with Regulation S-X, pro forma unaudited condensed financial information for the Bang Transaction has not been provided as the impact of the transaction on the Company's financial position, results of operations and liquidity was not material.​3.REVENUE RECOGNITIONRevenues are accounted for in accordance with FASB 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 and Bang Energy® drinks, (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, FMBs and hard seltzers 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/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. Recent Accounting Pronouncements - In November 2023, the FASB issued Accounting Standards Update ("ASU") 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 2023-07 are effective for fiscal years beginning after December 15, 2023. The Company adopted ASU 2023-07 on January 1, 2024, which did not have a material impact on the Company's financial position, results of operations and liquidity.In December 2023, the FASB issued ASU 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 2023-09 are effective for fiscal years beginning after December 15, 2024. Early adoption is permitted. The Company is currently evaluating the impact ASU 2023-09 will have on its consolidated financial statements.In November 2024, the FASB issued ASU 2024-03, Disaggregation of Income Statement Expenses. The amendments in this update require the Company to disaggregate key expense categories such as purchases of inventory, employee compensation, depreciation and intangible asset amortization within its financial statements. The amendments in ASU 2024-03 are effective for fiscal years beginning after December 15, 2026. Early adoption is permitted. The Company is currently evaluating the impact ASU 2024-03 will have on its consolidated financial statements.2.ACQUISITION On July 31, 2023, a subsidiary of the Company, Blast Asset Acquisition LLC, completed its acquisition of substantially all of the assets of Vital Pharmaceuticals, Inc. and certain of its affiliates (collectively, "Bang Energy") (the "Bang Transaction"). The acquired assets primarily include the Bang Energy® drinks business and a beverage production facility in Phoenix, AZ. The Company accounted for the Bang Transaction in accordance with FASB ASC 805.In accordance with Regulation S-X, pro forma unaudited condensed financial information for the Bang Transaction has not been provided as the impact of the transaction on the Company's financial position, results of operations and liquidity was not material.​3.REVENUE RECOGNITIONRevenues are accounted for in accordance with FASB 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 and Bang Energy® drinks, (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, FMBs and hard seltzers 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/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. Recent Accounting Pronouncements - In November 2023, the FASB issued Accounting Standards Update ("ASU") 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 2023-07 are effective for fiscal years beginning after December 15, 2023. The Company adopted ASU 2023-07 on January 1, 2024, which did not have a material impact on the Company's financial position, results of operations and liquidity. In December 2023, the FASB issued ASU 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 2023-09 are effective for fiscal years beginning after December 15, 2024. Early adoption is permitted. The Company is currently evaluating the impact ASU 2023-09 will have on its consolidated financial statements. In November 2024, the FASB issued ASU 2024-03, Disaggregation of Income Statement Expenses. The amendments in this update require the Company to disaggregate key expense categories such as purchases of inventory, employee compensation, depreciation and intangible asset amortization within its financial statements. The amendments in ASU 2024-03 are effective for fiscal years beginning after December 15, 2026. Early adoption is permitted. The Company is currently evaluating the impact ASU 2024-03 will have on its consolidated financial statements. --- ## Modified: (In Thousands, Except Per Share Amounts) **Key changes:** - Reworded sentence: "​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ 2024 2023 2022 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ NET SALES ​ $ 7,492,709 ​ $ 7,140,027 ​ $ 6,311,050 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ COST OF SALES ​ 3,443,831 ​ 3,345,821 ​ 3,136,483 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ GROSS PROFIT ​ 4,048,878 ​ 3,794,206 ​ 3,174,567 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ OPERATING EXPENSES ​ 2,118,584 ​ 1,840,851 ​ 1,589,846 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ OPERATING INCOME ​ 1,930,294 ​ 1,953,355 ​ 1,584,721 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ INTEREST AND OTHER INCOME (EXPENSE), NET ​ 59,165 ​ 115,127 ​ (12,757) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ INCOME BEFORE PROVISION FOR INCOME TAXES ​ 1,989,459 ​ 2,068,482 ​ 1,571,964 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ PROVISION FOR INCOME TAXES ​ ​ 480,411 ​ ​ 437,494 ​ ​ 380,340 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ NET INCOME ​ $ 1,509,048 ​ $ 1,630,988 ​ $ 1,191,624 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ NET INCOME PER COMMON SHARE: ​ ​ ​ ​ ​ ​ ​ ​ ​ Basic ​ $ 1.50 ​ $ 1.56 ​ $ 1.13 Diluted ​ $ 1.49 ​ $ 1.54 ​ $ 1.12 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ WEIGHTED AVERAGE NUMBER OF SHARES OF COMMON STOCK AND COMMON STOCK EQUIVALENTS: ​ ​ ​ ​ ​ ​ ​ ​ ​ Basic ​ 1,004,566 ​ 1,044,887 ​ 1,053,558 Diluted ​ 1,013,107 ​ 1,057,981 ​ 1,066,442 ​ See accompanying notes to consolidated financial statements." **Prior (2024):** ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ 2023 2022 2021 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ NET SALES ​ $ 7,140,027 ​ $ 6,311,050 ​ $ 5,541,352 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ COST OF SALES ​ 3,345,821 ​ 3,136,483 ​ 2,432,839 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ GROSS PROFIT ​ 3,794,206 ​ 3,174,567 ​ 3,108,513 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ OPERATING EXPENSES ​ 1,840,851 ​ 1,589,846 ​ 1,311,046 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ OPERATING INCOME ​ 1,953,355 ​ 1,584,721 ​ 1,797,467 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ INTEREST AND OTHER INCOME (EXPENSE), NET ​ 115,127 ​ (12,757) ​ 3,952 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ INCOME BEFORE PROVISION FOR INCOME TAXES ​ 2,068,482 ​ 1,571,964 ​ 1,801,419 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ PROVISION FOR INCOME TAXES ​ ​ 437,494 ​ ​ 380,340 ​ ​ 423,944 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ NET INCOME ​ $ 1,630,988 ​ $ 1,191,624 ​ $ 1,377,475 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ NET INCOME PER COMMON SHARE1: ​ ​ ​ ​ ​ ​ ​ ​ ​ Basic ​ $ 1.56 ​ $ 1.13 ​ $ 1.30 Diluted ​ $ 1.54 ​ $ 1.12 ​ $ 1.29 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ WEIGHTED AVERAGE NUMBER OF SHARES OF COMMON STOCK AND COMMON STOCK EQUIVALENTS1: ​ ​ ​ ​ ​ ​ ​ ​ ​ Basic ​ 1,044,887 ​ 1,053,558 ​ 1,057,526 Diluted ​ 1,057,981 ​ 1,066,442 ​ 1,071,278 ​ 1Stock Split - The accompanying consolidated financial statements and notes thereto have been retroactively updated to reflect the Stock Split. See Note 1 for additional information. See accompanying notes to consolidated financial statements. ​ 82 82 Table of ContentsMONSTER BEVERAGE CORPORATION AND SUBSIDIARIESCONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOMEFOR THE YEARS ENDED DECEMBER 31, 2023, 2022 AND 2021 (In Thousands)​​​​​​​​​​​ 2023 2022 2021Net income, as reported​$ 1,630,988​$ 1,191,624​$ 1,377,475Other comprehensive income (loss):​​​​​​​​​Change in foreign currency translation adjustment​ 24,241​ (85,021)​ (71,158)Available-for-sale investments:​​​​​​​​​Change in net unrealized gains (losses) ​ 5,085​ (4,887)​ (1,041)Net gains on commodity derivatives​ 4,410​ - ​ - Other comprehensive income (loss)​ 33,736​ (89,908)​ (72,199)Comprehensive income​$ 1,664,724​$ 1,101,716​$ 1,305,276​See accompanying notes to consolidated financial statements.​83 Table of Contents Table of Contents Table of Contents MONSTER BEVERAGE CORPORATION AND SUBSIDIARIESCONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOMEFOR THE YEARS ENDED DECEMBER 31, 2023, 2022 AND 2021 (In Thousands)​​​​​​​​​​​ 2023 2022 2021Net income, as reported​$ 1,630,988​$ 1,191,624​$ 1,377,475Other comprehensive income (loss):​​​​​​​​​Change in foreign currency translation adjustment​ 24,241​ (85,021)​ (71,158)Available-for-sale investments:​​​​​​​​​Change in net unrealized gains (losses) ​ 5,085​ (4,887)​ (1,041)Net gains on commodity derivatives​ 4,410​ - ​ - Other comprehensive income (loss)​ 33,736​ (89,908)​ (72,199)Comprehensive income​$ 1,664,724​$ 1,101,716​$ 1,305,276​See accompanying notes to consolidated financial statements.​ **Current (2025):** ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ 2024 2023 2022 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ NET SALES ​ $ 7,492,709 ​ $ 7,140,027 ​ $ 6,311,050 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ COST OF SALES ​ 3,443,831 ​ 3,345,821 ​ 3,136,483 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ GROSS PROFIT ​ 4,048,878 ​ 3,794,206 ​ 3,174,567 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ OPERATING EXPENSES ​ 2,118,584 ​ 1,840,851 ​ 1,589,846 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ OPERATING INCOME ​ 1,930,294 ​ 1,953,355 ​ 1,584,721 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ INTEREST AND OTHER INCOME (EXPENSE), NET ​ 59,165 ​ 115,127 ​ (12,757) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ INCOME BEFORE PROVISION FOR INCOME TAXES ​ 1,989,459 ​ 2,068,482 ​ 1,571,964 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ PROVISION FOR INCOME TAXES ​ ​ 480,411 ​ ​ 437,494 ​ ​ 380,340 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ NET INCOME ​ $ 1,509,048 ​ $ 1,630,988 ​ $ 1,191,624 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ NET INCOME PER COMMON SHARE: ​ ​ ​ ​ ​ ​ ​ ​ ​ Basic ​ $ 1.50 ​ $ 1.56 ​ $ 1.13 Diluted ​ $ 1.49 ​ $ 1.54 ​ $ 1.12 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ WEIGHTED AVERAGE NUMBER OF SHARES OF COMMON STOCK AND COMMON STOCK EQUIVALENTS: ​ ​ ​ ​ ​ ​ ​ ​ ​ Basic ​ 1,004,566 ​ 1,044,887 ​ 1,053,558 Diluted ​ 1,013,107 ​ 1,057,981 ​ 1,066,442 ​ See accompanying notes to consolidated financial statements. ​ 77 77 Table of ContentsMONSTER BEVERAGE CORPORATION AND SUBSIDIARIESCONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOMEFOR THE YEARS ENDED DECEMBER 31, 2024, 2023 AND 2022 (In Thousands)​​​​​​​​​​​ 2024 2023 2022Net income, as reported​$ 1,509,048​$ 1,630,988​$ 1,191,624Other comprehensive income (loss), net of tax:​​​​​​​​​Change in foreign currency translation adjustment​ (140,941)​ 24,241​ (85,021)Change in net unrealized gain (loss) on available-for-sale investments​​ 758​​ 5,085​​ (4,887)Change in net gain (loss) on commodity derivatives​ (3,967)​ 4,410​ - Other comprehensive income (loss)​ (144,150)​ 33,736​ (89,908)Comprehensive income​$ 1,364,898​$ 1,664,724​$ 1,101,716​See accompanying notes to consolidated financial statements.​78 Table of Contents Table of Contents Table of Contents MONSTER BEVERAGE CORPORATION AND SUBSIDIARIESCONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOMEFOR THE YEARS ENDED DECEMBER 31, 2024, 2023 AND 2022 (In Thousands)​​​​​​​​​​​ 2024 2023 2022Net income, as reported​$ 1,509,048​$ 1,630,988​$ 1,191,624Other comprehensive income (loss), net of tax:​​​​​​​​​Change in foreign currency translation adjustment​ (140,941)​ 24,241​ (85,021)Change in net unrealized gain (loss) on available-for-sale investments​​ 758​​ 5,085​​ (4,887)Change in net gain (loss) on commodity derivatives​ (3,967)​ 4,410​ - Other comprehensive income (loss)​ (144,150)​ 33,736​ (89,908)Comprehensive income​$ 1,364,898​$ 1,664,724​$ 1,101,716​See accompanying notes to consolidated financial statements.​ MONSTER BEVERAGE CORPORATION AND SUBSIDIARIESCONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOMEFOR THE YEARS ENDED DECEMBER 31, 2024, 2023 AND 2022 (In Thousands)​​​​​​​​​​​ 2024 2023 2022Net income, as reported​$ 1,509,048​$ 1,630,988​$ 1,191,624Other comprehensive income (loss), net of tax:​​​​​​​​​Change in foreign currency translation adjustment​ (140,941)​ 24,241​ (85,021)Change in net unrealized gain (loss) on available-for-sale investments​​ 758​​ 5,085​​ (4,887)Change in net gain (loss) on commodity derivatives​ (3,967)​ 4,410​ - Other comprehensive income (loss)​ (144,150)​ 33,736​ (89,908)Comprehensive income​$ 1,364,898​$ 1,664,724​$ 1,101,716​See accompanying notes to consolidated financial statements.​ --- ## Modified: Stock Price and Dividend Information **Key changes:** - Reworded sentence: "Share Repurchase Programs On November 2, 2022, the Company's Board of Directors authorized a share repurchase program for the purchase of up to $500.0 million of the Company's outstanding common stock (the "November 2022 Repurchase Plan")." - Reworded sentence: "During the year ended December 31, 2024, the Company purchased approximately 10.6 million shares of common stock at an average purchase price of $47.16 per share, for a total amount of approximately $500.0 million, which exhausted the availability under the November 2023 Repurchase Plan." - Reworded sentence: "Such shares are included in common stock in treasury in the accompanying consolidated balance sheet at December 31, 2024." - Reworded sentence: "Pepper Inc., Constellation Brands, Inc., Molson Coors Beverage Company and PepsiCo, Inc.ITEM 6.[RESERVED]​ITEM 7.MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONSThe following Management's Discussion and Analysis of Financial Condition and Results of Operations ("MD&A") is provided as a supplement to - and should be read in conjunction with - our financial statements and the accompanying notes ("Notes") included in Part II, Item 8 of this Form 10-K." - Reworded sentence: "Pepper Inc., Constellation Brands, Inc., Molson Coors Beverage Company and PepsiCo, Inc.ITEM 6.[RESERVED]​ITEM 7.MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONSThe following Management's Discussion and Analysis of Financial Condition and Results of Operations ("MD&A") is provided as a supplement to - and should be read in conjunction with - our financial statements and the accompanying notes ("Notes") included in Part II, Item 8 of this Form 10-K." **Prior (2024):** We have not paid cash dividends to our stockholders since our inception and do not anticipate paying cash dividends in the foreseeable future. On June 14, 2022, the Company's Board of Directors authorized a share repurchase program for the purchase of up to $500.0 million of the Company's outstanding common stock (the "June 2022 Repurchase Plan"). During the year ended December 31, 2023, the Company purchased approximately 3.3 million shares of common stock at an average purchase price of $55.52 per share, for a total amount of approximately $182.8 million (excluding broker commissions), which exhausted the availability under the June 2022 Repurchase Plan. 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 year ended December 31, 2023, the Company purchased approximately 4.8 million shares of common stock at an average purchase price of $54.31 per share, for a total amount of approximately $260.3 million (excluding broker commissions), under the November 2022 Repurchase Plan. As of February 27, 2024, $142.4 million 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 year ended December 31, 2023, no shares were repurchased under the November 2023 Repurchase Plan. As of February 27, 2024, $500.0 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 $642.4 million as of February 27, 2024. During the year ended December 31, 2023, 3.8 million shares of common stock were purchased from employees in lieu of cash payments for options exercised or withholding taxes due for a total amount of $214.2 million. While such purchases are considered common stock repurchases, they are not counted as purchases against the Company's authorized share repurchase programs. Such shares are included in common stock in treasury in the accompanying consolidated balance sheet at December 31, 2023. 43 43 Table of ContentsThe following tabular summary reflects the Company's repurchase activity during the quarter ended December 31, 2023.​​​​​​​​​​​​​​​​​​​​​Maximum Number (or​​​​​​​​​Approximate Dollar​​​​​​​Total Number of​​Value) of Shares that​​​​​​​Shares Purchased​​May Yet Be Purchased​​Total Number​​​​as Part of Publicly​Under the Plans or​​of Shares​Average Price​Announced Plans​Programs (InPeriod Purchased per Share¹ or Programs thousands)²Oct 1 - Oct 31, 2023​ - ​$ - ​ - ​$ 282,838November 7, 2023 Authorization ​​​​​​​$ 500,000Nov 1 - Nov 30, 2023 - ​$ - - ​$ 782,838Dec 1 - Dec 31, 2023 791,317​$ 54.57 791,317​$ 739,643​¹Excluding broker commissions paid.²Net of broker commissions paid.Performance GraphThe following graph shows a five-year comparison of cumulative total returns:1​​1Annual return assumes reinvestment of dividends. Cumulative total return assumes an initial investment of $100 on December 31, 2018. The Company's self-selected peer group is comprised of TCCC, Keurig Dr. Pepper Inc., Constellation Brands, Inc., Molson Coors Beverage Company and PepsiCo, Inc.ITEM 6.[RESERVED]​44 Table of Contents Table of Contents Table of Contents The following tabular summary reflects the Company's repurchase activity during the quarter ended December 31, 2023.​​​​​​​​​​​​​​​​​​​​​Maximum Number (or​​​​​​​​​Approximate Dollar​​​​​​​Total Number of​​Value) of Shares that​​​​​​​Shares Purchased​​May Yet Be Purchased​​Total Number​​​​as Part of Publicly​Under the Plans or​​of Shares​Average Price​Announced Plans​Programs (InPeriod Purchased per Share¹ or Programs thousands)²Oct 1 - Oct 31, 2023​ - ​$ - ​ - ​$ 282,838November 7, 2023 Authorization ​​​​​​​$ 500,000Nov 1 - Nov 30, 2023 - ​$ - - ​$ 782,838Dec 1 - Dec 31, 2023 791,317​$ 54.57 791,317​$ 739,643​¹Excluding broker commissions paid.²Net of broker commissions paid.Performance GraphThe following graph shows a five-year comparison of cumulative total returns:1​​1Annual return assumes reinvestment of dividends. Cumulative total return assumes an initial investment of $100 on December 31, 2018. The Company's self-selected peer group is comprised of TCCC, Keurig Dr. Pepper Inc., Constellation Brands, Inc., Molson Coors Beverage Company and PepsiCo, Inc.ITEM 6.[RESERVED]​ The following tabular summary reflects the Company's repurchase activity during the quarter ended December 31, 2023. ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ 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 Oct 1 - Oct 31, 2023 ​ - ​ $ - ​ - ​ $ 282,838 November 7, 2023 Authorization ​ ​ ​ ​ ​ ​ ​ $ 500,000 Nov 1 - Nov 30, 2023 - ​ $ - - ​ $ 782,838 Dec 1 - Dec 31, 2023 791,317 ​ $ 54.57 791,317 ​ $ 739,643 ​ ¹Excluding broker commissions paid. ²Net of broker commissions paid. **Current (2025):** We have not paid cash dividends to our stockholders since our inception and do not anticipate paying cash dividends in the foreseeable future. Share Repurchase Programs On November 2, 2022, the Company's Board of Directors authorized a share repurchase program for the purchase of up to $500.0 million of the Company's outstanding common stock (the "November 2022 Repurchase Plan"). During the year ended December 31, 2024, the Company purchased approximately 4.6 million shares of common stock at an average purchase price of $51.67 per share, for a total amount of approximately $239.6 million, which exhausted the availability 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 year ended December 31, 2024, the Company purchased approximately 10.6 million shares of common stock at an average purchase price of $47.16 per share, for a total amount of approximately $500.0 million, which exhausted the availability under the November 2023 Repurchase Plan. On August 19, 2024, 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 "August 2024 Repurchase Plan"). During the year ended December 31, 2024, no shares were repurchased under the August 2024 Repurchase Plan. As of February 27, 2025, $500.0 million remained available for repurchase under the August 2024 Repurchase Plan. The aggregate amount of the Company's outstanding common stock that remains available for repurchase under all previously authorized repurchase plans is $500.0 million as of February 27, 2025. During the year ended December 31, 2024, 0.4 million shares of common stock were purchased from employees in lieu of cash payments for options exercised or withholding taxes due for a total amount of $23.1 million. While such purchases are considered common stock repurchases, they are not counted as purchases against the Company's authorized share repurchase programs. Such shares are included in common stock in treasury in the accompanying consolidated balance sheet at December 31, 2024. 39 39 Table of ContentsThe following tabular summary reflects the Company's repurchase activity during the quarter ended December 31, 2024.​​​​​​​​​​​​​​​​​​​​Maximum Number (or​​​​​​​​​Approximate Dollar​​​​​​​Total Number of​​Value) of Shares that​​​​​​​Shares Purchased​​May Yet Be Purchased​​Total Number​​​​as Part of Publicly​Under the Plans or​​of Shares​Average Price​Announced Plans​Programs (InPeriod Purchased per Share or Programs1 thousands)Oct 1 - Oct 31, 2024​ - ​$ - ​ - ​$ 500,000Nov 1 - Nov 30, 2024 - ​$ - ​ - ​$ 500,000Dec 1 - Dec 31, 2024 - ​$ - - ​$ 500,000​1 On August 19, 2024, the Company publicly announced that its Board of Directors authorized the August 2024 Repurchase Plan. Board authorization of the repurchase plan remains in effect until shares in the amount authorized thereunder have been repurchased. See Item 5, "Market for the Registrant's Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities" above for more information.Tender OfferOn 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 $750 million in borrowings. The cost of these shares and the fees relating to the tender offer are included in common stock in treasury in the accompanying consolidated balance sheet at December 31, 2024.For information concerning shares of the Company's Common Stock authorized for issuance under the Company's equity compensation plans, see "Item 12. Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters."40 Table of Contents Table of Contents Table of Contents The following tabular summary reflects the Company's repurchase activity during the quarter ended December 31, 2024.​​​​​​​​​​​​​​​​​​​​Maximum Number (or​​​​​​​​​Approximate Dollar​​​​​​​Total Number of​​Value) of Shares that​​​​​​​Shares Purchased​​May Yet Be Purchased​​Total Number​​​​as Part of Publicly​Under the Plans or​​of Shares​Average Price​Announced Plans​Programs (InPeriod Purchased per Share or Programs1 thousands)Oct 1 - Oct 31, 2024​ - ​$ - ​ - ​$ 500,000Nov 1 - Nov 30, 2024 - ​$ - ​ - ​$ 500,000Dec 1 - Dec 31, 2024 - ​$ - - ​$ 500,000​1 On August 19, 2024, the Company publicly announced that its Board of Directors authorized the August 2024 Repurchase Plan. Board authorization of the repurchase plan remains in effect until shares in the amount authorized thereunder have been repurchased. See Item 5, "Market for the Registrant's Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities" above for more information.Tender OfferOn 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 $750 million in borrowings. The cost of these shares and the fees relating to the tender offer are included in common stock in treasury in the accompanying consolidated balance sheet at December 31, 2024.For information concerning shares of the Company's Common Stock authorized for issuance under the Company's equity compensation plans, see "Item 12. Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters." The following tabular summary reflects the Company's repurchase activity during the quarter ended December 31, 2024.​​​​​​​​​​​​​​​​​​​​Maximum Number (or​​​​​​​​​Approximate Dollar​​​​​​​Total Number of​​Value) of Shares that​​​​​​​Shares Purchased​​May Yet Be Purchased​​Total Number​​​​as Part of Publicly​Under the Plans or​​of Shares​Average Price​Announced Plans​Programs (InPeriod Purchased per Share or Programs1 thousands)Oct 1 - Oct 31, 2024​ - ​$ - ​ - ​$ 500,000Nov 1 - Nov 30, 2024 - ​$ - ​ - ​$ 500,000Dec 1 - Dec 31, 2024 - ​$ - - ​$ 500,000​1 On August 19, 2024, the Company publicly announced that its Board of Directors authorized the August 2024 Repurchase Plan. Board authorization of the repurchase plan remains in effect until shares in the amount authorized thereunder have been repurchased. See Item 5, "Market for the Registrant's Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities" above for more information.Tender OfferOn 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 consolidated balance sheet at December 31, 2024.For information concerning shares of the Company's Common Stock authorized for issuance under the Company's equity compensation plans, see "Item 12. Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters." The following tabular summary reflects the Company's repurchase activity during the quarter ended December 31, 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 Share or Programs1 thousands) Oct 1 - Oct 31, 2024 ​ - ​ $ - ​ - ​ $ 500,000 Nov 1 - Nov 30, 2024 - ​ $ - ​ - ​ $ 500,000 Dec 1 - Dec 31, 2024 - ​ $ - - ​ $ 500,000 ​ 1 On August 19, 2024, the Company publicly announced that its Board of Directors authorized the August 2024 Repurchase Plan. Board authorization of the repurchase plan remains in effect until shares in the amount authorized thereunder have been repurchased. See Item 5, "Market for the Registrant's Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities" above for more information. Tender Offer 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 consolidated balance sheet at December 31, 2024. For information concerning shares of the Company's Common Stock authorized for issuance under the Company's equity compensation plans, see "Item 12. Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters." 40 40 Table of ContentsPerformance GraphThe following graph shows a five-year comparison of cumulative total returns:1​​1Annual return assumes reinvestment of dividends. Cumulative total return assumes an initial investment of $100 on December 31, 2019. The Company's self-selected peer group is comprised of TCCC, Keurig Dr. Pepper Inc., Constellation Brands, Inc., Molson Coors Beverage Company and PepsiCo, Inc.ITEM 6.[RESERVED]​ITEM 7.MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONSThe following Management's Discussion and Analysis of Financial Condition and Results of Operations ("MD&A") is provided as a supplement to - and should be read in conjunction with - our financial statements and the accompanying notes ("Notes") included in Part II, Item 8 of this Form 10-K. This discussion contains forward-looking statements that are based on management's current expectations, estimates and projections about our business and operations. Our actual results may differ materially from those currently anticipated and expressed in such forward-looking statements. See "Forward-Looking Statements" and "Part I, Item 1A - Risk Factors."This overview provides our perspective on the individual sections of MD&A. MD&A includes the following sections:●Pricing Actions - a discussion of certain pricing actions implemented during 2024 and 2023;●Our Business - a general description of our business, the value drivers of our business, and opportunities and risks facing our Company, stock repurchases, acquisitions and divestitures;●Results of Operations - an analysis of our consolidated results of operations for the years ended December 31, 2024 and 2023;●Sales - details of our sales measured on a quarterly basis in both dollars and cases;●Inflation - information about the impact that inflation may or may not have on our results;●Liquidity and Capital Resources - an analysis of our cash flows, sources and uses of cash and contractual obligations;41 Table of Contents Table of Contents Table of Contents Performance GraphThe following graph shows a five-year comparison of cumulative total returns:1​​1Annual return assumes reinvestment of dividends. Cumulative total return assumes an initial investment of $100 on December 31, 2019. The Company's self-selected peer group is comprised of TCCC, Keurig Dr. Pepper Inc., Constellation Brands, Inc., Molson Coors Beverage Company and PepsiCo, Inc.ITEM 6.[RESERVED]​ITEM 7.MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONSThe following Management's Discussion and Analysis of Financial Condition and Results of Operations ("MD&A") is provided as a supplement to - and should be read in conjunction with - our financial statements and the accompanying notes ("Notes") included in Part II, Item 8 of this Form 10-K. This discussion contains forward-looking statements that are based on management's current expectations, estimates and projections about our business and operations. Our actual results may differ materially from those currently anticipated and expressed in such forward-looking statements. See "Forward-Looking Statements" and "Part I, Item 1A - Risk Factors."This overview provides our perspective on the individual sections of MD&A. MD&A includes the following sections:●Pricing Actions - a discussion of certain pricing actions implemented during 2024 and 2023;●Our Business - a general description of our business, the value drivers of our business, and opportunities and risks facing our Company, stock repurchases, acquisitions and divestitures;●Results of Operations - an analysis of our consolidated results of operations for the years ended December 31, 2024 and 2023;●Sales - details of our sales measured on a quarterly basis in both dollars and cases;●Inflation - information about the impact that inflation may or may not have on our results;●Liquidity and Capital Resources - an analysis of our cash flows, sources and uses of cash and contractual obligations; Performance GraphThe following graph shows a five-year comparison of cumulative total returns:1​​1Annual return assumes reinvestment of dividends. Cumulative total return assumes an initial investment of $100 on December 31, 2019. The Company's self-selected peer group is comprised of TCCC, Keurig Dr. Pepper Inc., Constellation Brands, Inc., Molson Coors Beverage Company and PepsiCo, Inc.ITEM 6.[RESERVED]​ITEM 7.MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONSThe following Management's Discussion and Analysis of Financial Condition and Results of Operations ("MD&A") is provided as a supplement to - and should be read in conjunction with - our financial statements and the accompanying notes ("Notes") included in Part II, Item 8 of this Form 10-K. This discussion contains forward-looking statements that are based on management's current expectations, estimates and projections about our business and operations. Our actual results may differ materially from those currently anticipated and expressed in such forward-looking statements. See "Forward-Looking Statements" and "Part I, Item 1A - Risk Factors."This overview provides our perspective on the individual sections of MD&A. MD&A includes the following sections:●Pricing Actions - a discussion of certain pricing actions implemented during 2024 and 2023;●Our Business - a general description of our business, the value drivers of our business, and opportunities and risks facing our Company, stock repurchases, acquisitions and divestitures;●Results of Operations - an analysis of our consolidated results of operations for the years ended December 31, 2024 and 2023;●Sales - details of our sales measured on a quarterly basis in both dollars and cases;●Inflation - information about the impact that inflation may or may not have on our results;●Liquidity and Capital Resources - an analysis of our cash flows, sources and uses of cash and contractual obligations; --- ## Modified: Value Drivers of our Business **Key changes:** - Reworded sentence: "These measurements will continue to be a key management focus in 2025 and beyond (See "Part II, Item 7 - Management's Discussion and Analysis of Financial Condition and Results of Operations - Results of Operations")." **Prior (2024):** We believe that the key value drivers of our business include the following: We believe that, subject to increases in the costs of certain raw materials being contained, these value drivers, when implemented and/or achieved in the United States and internationally, will result in: (1) improving or maintaining our product gross profit margins; (2) reducing our expenses as a percentage of net operating revenues; and (3) enhancing our cost of capital. The ultimate measure of success is and will be reflected in our current and future results of operations. Net sales, gross profit, operating income, net income and net income per share represent key measurements of the above value drivers. These measurements will continue to be a key management focus in 2024 and beyond (See "Part II, Item 7 - Management's Discussion and Analysis of Financial Condition and Results of Operations - Results of Operations"). As of December 31, 2023, the Company had working capital of $4.43 billion compared to $3.76 billion as of December 31, 2022. The increase in working capital was primarily the result of the increase in cash and cash equivalents, 48 48 Table of Contentsrelated to the increase in net sales for the year ended December 31, 2023. For the year ended December 31, 2023, our net cash provided by operating activities was approximately $1.72 billion as compared to $887.7 million for the year ended December 31, 2022. Principal uses of cash flows in 2023 were purchases of investments, purchases of treasury stock, the acquisition of Bang Energy, development of our brands internationally and purchases of real property, property and equipment. Except for the acquisition of Bang Energy, these principal uses of cash flows are expected to be and remain our principal recurring use of cash and working capital funds in the future (See "Part II, Item 7 - Management's Discussion and Analysis of Financial Condition and Results of Operations - Liquidity and Capital Resources").Opportunities, Challenges and RisksLooking forward, our management has identified certain challenges and risks for the beverage industry and the Company, including our significant commercial relationship with TCCC and TCCC's status as a significant stockholder of the Company, in each case as described above under "Part I, Item 1A - Risk Factors." In addition, legislation has been proposed and/or adopted at the U.S., state, county and/or municipal level and proposed and/or adopted in certain foreign jurisdictions to restrict the sale of energy and alcohol drinks (including prohibiting the sale of energy and/or alcohol drinks at certain establishments or pursuant to certain governmental programs), limit caffeine and/or alcohol content, require certain product labeling disclosures and/or warnings, impose taxes, limit product sizes or impose age restrictions for the sale of energy and/or alcohol drinks. In addition, articles critical of the caffeine content in energy drinks and their perceived benefits, or alcohol drinks and their misuse or abuse, as well as articles indicating certain health risks of energy and alcohol drinks have been published. The proposal and/or adoption of such legislation and the publication of such articles, or the future proposal and/or adoption of similar legislation or publication of similar articles, may adversely affect our Company. In addition, uncertainty and/or volatility in our domestic and/or our international economic markets could negatively affect both the stability of our industry and our Company. Furthermore, our growth strategy includes expanding our international business, which exposes us to risks inherent in conducting international operations, including the risks associated with foreign currency exchange rate fluctuations. Consumer discretionary spending also represents a challenge to the successful marketing and sale of our products. Increases in consumer and regulatory awareness of the health problems arising from obesity and inactive lifestyles as well as alcohol consumption continue to represent a challenge. We recognize that obesity and alcohol abuse and misuse are complex and serious public health problems. Our commitment to consumers begins with our broad product line and a wide selection of diet, light and low calorie beverages within our product lines. We continuously strive to meet changing consumer needs through beverage innovation, choice and variety. (See "Part I, Item 1A - Risk Factors").Our historical success is attributable, in part, to our introduction of different and innovative beverages which have been positively accepted by consumers. Our future success will depend, in part, upon our continued ability to develop and introduce different and innovative beverages that meet consumer preferences, although there can be no assurance of our ability to do so. In order to retain and expand our market share, we must continue to develop and introduce different and innovative beverages and be competitive in the areas of price, quality, method of distribution, brand image and intellectual property protection. The beverage industry is subject to changing consumer preferences that may adversely affect us if we misjudge such preferences.In addition, other key challenges and risks that could impact our Company's future financial results include, but are not limited to:●the risks associated with the realization of benefits from our relationship with TCCC;49 Table of Contents Table of Contents Table of Contents related to the increase in net sales for the year ended December 31, 2023. For the year ended December 31, 2023, our net cash provided by operating activities was approximately $1.72 billion as compared to $887.7 million for the year ended December 31, 2022. Principal uses of cash flows in 2023 were purchases of investments, purchases of treasury stock, the acquisition of Bang Energy, development of our brands internationally and purchases of real property, property and equipment. Except for the acquisition of Bang Energy, these principal uses of cash flows are expected to be and remain our principal recurring use of cash and working capital funds in the future (See "Part II, Item 7 - Management's Discussion and Analysis of Financial Condition and Results of Operations - Liquidity and Capital Resources").Opportunities, Challenges and RisksLooking forward, our management has identified certain challenges and risks for the beverage industry and the Company, including our significant commercial relationship with TCCC and TCCC's status as a significant stockholder of the Company, in each case as described above under "Part I, Item 1A - Risk Factors." In addition, legislation has been proposed and/or adopted at the U.S., state, county and/or municipal level and proposed and/or adopted in certain foreign jurisdictions to restrict the sale of energy and alcohol drinks (including prohibiting the sale of energy and/or alcohol drinks at certain establishments or pursuant to certain governmental programs), limit caffeine and/or alcohol content, require certain product labeling disclosures and/or warnings, impose taxes, limit product sizes or impose age restrictions for the sale of energy and/or alcohol drinks. In addition, articles critical of the caffeine content in energy drinks and their perceived benefits, or alcohol drinks and their misuse or abuse, as well as articles indicating certain health risks of energy and alcohol drinks have been published. The proposal and/or adoption of such legislation and the publication of such articles, or the future proposal and/or adoption of similar legislation or publication of similar articles, may adversely affect our Company. In addition, uncertainty and/or volatility in our domestic and/or our international economic markets could negatively affect both the stability of our industry and our Company. Furthermore, our growth strategy includes expanding our international business, which exposes us to risks inherent in conducting international operations, including the risks associated with foreign currency exchange rate fluctuations. Consumer discretionary spending also represents a challenge to the successful marketing and sale of our products. Increases in consumer and regulatory awareness of the health problems arising from obesity and inactive lifestyles as well as alcohol consumption continue to represent a challenge. We recognize that obesity and alcohol abuse and misuse are complex and serious public health problems. Our commitment to consumers begins with our broad product line and a wide selection of diet, light and low calorie beverages within our product lines. We continuously strive to meet changing consumer needs through beverage innovation, choice and variety. (See "Part I, Item 1A - Risk Factors").Our historical success is attributable, in part, to our introduction of different and innovative beverages which have been positively accepted by consumers. Our future success will depend, in part, upon our continued ability to develop and introduce different and innovative beverages that meet consumer preferences, although there can be no assurance of our ability to do so. In order to retain and expand our market share, we must continue to develop and introduce different and innovative beverages and be competitive in the areas of price, quality, method of distribution, brand image and intellectual property protection. The beverage industry is subject to changing consumer preferences that may adversely affect us if we misjudge such preferences.In addition, other key challenges and risks that could impact our Company's future financial results include, but are not limited to:●the risks associated with the realization of benefits from our relationship with TCCC; related to the increase in net sales for the year ended December 31, 2023. For the year ended December 31, 2023, our net cash provided by operating activities was approximately $1.72 billion as compared to $887.7 million for the year ended December 31, 2022. Principal uses of cash flows in 2023 were purchases of investments, purchases of treasury stock, the acquisition of Bang Energy, development of our brands internationally and purchases of real property, property and equipment. Except for the acquisition of Bang Energy, these principal uses of cash flows are expected to be and remain our principal recurring use of cash and working capital funds in the future (See "Part II, Item 7 - Management's Discussion and Analysis of Financial Condition and Results of Operations - Liquidity and Capital Resources"). **Current (2025):** We believe that the key value drivers of our business include the following: We believe that, subject to increases in the costs of certain raw materials being contained, these value drivers, when implemented and/or achieved in the United States and internationally, will result in: (1) improving or maintaining our product gross profit margins; (2) reducing our expenses as a percentage of net operating revenues; and (3) enhancing our cost of capital. The ultimate measure of success is and will be reflected in our current and future results of operations. Net sales, gross profit, operating income, net income and net income per share represent key measurements of the above value drivers. These measurements will continue to be a key management focus in 2025 and beyond (See "Part II, Item 7 - Management's Discussion and Analysis of Financial Condition and Results of Operations - Results of Operations"). As of December 31, 2024, the Company had working capital of $2.54 billion compared to $4.43 billion as of December 31, 2023. The decrease in working capital was primarily the result of the decrease in cash and cash equivalents and short-term investments related to treasury stock repurchases for the year ended December 31, 2024. For the year ended December 31, 2024, our net cash provided by operating activities was approximately $1.93 billion as compared to $1.72 billion for the year ended December 31, 2023. Principal uses of cash flows in 2024 were purchases of treasury stock and purchases of real property, property and equipment. These principal uses of cash flows are expected to be and remain our principal recurring use of cash and working capital funds in the future (See "Part II, Item 7 - Management's Discussion and Analysis of Financial Condition and Results of Operations - Liquidity and Capital Resources"). --- ## Modified: FOR THE YEARS ENDED DECEMBER 31, 2024, 2023 AND 2022 (In Thousands) **Prior (2024):** ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ **Current (2025):** ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ --- ## Modified: December 31, **Key changes:** - Reworded sentence: "​ 2024 2023 ASSETS ​ ​ ​ ​ ​ ​ CURRENT ASSETS: ​ ​ ​ ​ ​ ​ Cash and cash equivalents ​ $ 1,533,287 ​ $ 2,297,675 Short-term investments ​ - 955,605 Accounts receivable, net ​ 1,221,646 1,193,964 Inventories ​ 737,107 971,406 Prepaid expenses and other current assets ​ 107,262 116,195 Prepaid income taxes ​ 42,202 54,151 Total current assets ​ 3,641,504 5,588,996 ​ ​ ​ ​ ​ ​ ​ INVESTMENTS ​ - 76,431 PROPERTY AND EQUIPMENT, net ​ 1,047,024 890,796 DEFERRED INCOME TAXES, net ​ 184,260 175,003 GOODWILL ​ 1,331,643 1,417,941 OTHER INTANGIBLE ASSETS, net ​ 1,414,252 1,427,139 OTHER ASSETS ​ 100,406 110,216" **Prior (2024):** ​ 2023 2022 ASSETS ​ ​ ​ ​ ​ ​ CURRENT ASSETS: ​ ​ ​ ​ ​ ​ Cash and cash equivalents ​ $ 2,297,675 ​ $ 1,307,141 Short-term investments ​ 955,605 1,362,314 Accounts receivable, net ​ 1,193,964 1,016,203 Inventories ​ 971,406 935,631 Prepaid expenses and other current assets ​ 116,195 109,823 Prepaid income taxes ​ 54,151 33,785 Total current assets ​ 5,588,996 4,764,897 ​ ​ ​ ​ ​ ​ ​ INVESTMENTS ​ 76,431 61,443 PROPERTY AND EQUIPMENT, net ​ 890,796 516,897 DEFERRED INCOME TAXES, net ​ 175,003 177,039 GOODWILL ​ 1,417,941 1,417,941 OTHER INTANGIBLE ASSETS, net ​ 1,427,139 1,220,410 OTHER ASSETS ​ 110,216 134,478 **Current (2025):** ​ 2024 2023 ASSETS ​ ​ ​ ​ ​ ​ CURRENT ASSETS: ​ ​ ​ ​ ​ ​ Cash and cash equivalents ​ $ 1,533,287 ​ $ 2,297,675 Short-term investments ​ - 955,605 Accounts receivable, net ​ 1,221,646 1,193,964 Inventories ​ 737,107 971,406 Prepaid expenses and other current assets ​ 107,262 116,195 Prepaid income taxes ​ 42,202 54,151 Total current assets ​ 3,641,504 5,588,996 ​ ​ ​ ​ ​ ​ ​ INVESTMENTS ​ - 76,431 PROPERTY AND EQUIPMENT, net ​ 1,047,024 890,796 DEFERRED INCOME TAXES, net ​ 184,260 175,003 GOODWILL ​ 1,331,643 1,417,941 OTHER INTANGIBLE ASSETS, net ​ 1,414,252 1,427,139 OTHER ASSETS ​ 100,406 110,216 --- ## Modified: Total Liabilities and Stockholders' Equity **Key changes:** - Reworded sentence: "​ $ 7,719,089 $ 9,686,522 ​ See accompanying notes to consolidated financial statements." **Prior (2024):** ​ $ 9,686,522 $ 8,293,105 ​ 1Stock Split - On February 28, 2023, the Company announced a two-for-one stock split of its common stock to be effected in the form of a 100% stock dividend. The stock dividend was issued on March 27, 2023 (the "Stock Split"). The accompanying consolidated financial statements and notes thereto have been retroactively updated to reflect the Stock Split. See Note 1 for additional information. See accompanying notes to consolidated financial statements. ​ 81 81 Table of ContentsMONSTER BEVERAGE CORPORATION AND SUBSIDIARIESCONSOLIDATED STATEMENTS OF INCOMEFOR THE YEARS ENDED DECEMBER 31, 2023, 2022 AND 2021(In Thousands, Except Per Share Amounts)​​​​​​​​​​​ 2023 2022 2021​​​​​​​​​​NET SALES​$ 7,140,027​$ 6,311,050​$ 5,541,352​​​​​​​​​​COST OF SALES​ 3,345,821​ 3,136,483​ 2,432,839​​​​​​​​​​GROSS PROFIT​ 3,794,206​ 3,174,567​ 3,108,513​​​​​​​​​​OPERATING EXPENSES​ 1,840,851​ 1,589,846​ 1,311,046​​​​​​​​​​OPERATING INCOME​ 1,953,355​ 1,584,721​ 1,797,467​​​​​​​​​​INTEREST AND OTHER INCOME (EXPENSE), NET​ 115,127​ (12,757)​ 3,952​​​​​​​​​​INCOME BEFORE PROVISION FOR INCOME TAXES​ 2,068,482​ 1,571,964​ 1,801,419​​​​​​​​​​PROVISION FOR INCOME TAXES​​ 437,494​​ 380,340​​ 423,944​​​​​​​​​​NET INCOME​$ 1,630,988​$ 1,191,624​$ 1,377,475​​​​​​​​​​NET INCOME PER COMMON SHARE1:​​​​​​​​​Basic​$ 1.56​$ 1.13​$ 1.30Diluted​$ 1.54​$ 1.12​$ 1.29​​​​​​​​​​WEIGHTED AVERAGE NUMBER OF SHARES OF COMMON STOCK AND COMMON STOCK EQUIVALENTS1:​​​​​​​​​Basic​ 1,044,887​ 1,053,558​ 1,057,526Diluted​ 1,057,981​ 1,066,442​ 1,071,278​1Stock Split - The accompanying consolidated financial statements and notes thereto have been retroactively updated to reflect the Stock Split. See Note 1 for additional information.See accompanying notes to consolidated financial statements.​82 Table of Contents Table of Contents Table of Contents MONSTER BEVERAGE CORPORATION AND SUBSIDIARIESCONSOLIDATED STATEMENTS OF INCOMEFOR THE YEARS ENDED DECEMBER 31, 2023, 2022 AND 2021(In Thousands, Except Per Share Amounts)​​​​​​​​​​​ 2023 2022 2021​​​​​​​​​​NET SALES​$ 7,140,027​$ 6,311,050​$ 5,541,352​​​​​​​​​​COST OF SALES​ 3,345,821​ 3,136,483​ 2,432,839​​​​​​​​​​GROSS PROFIT​ 3,794,206​ 3,174,567​ 3,108,513​​​​​​​​​​OPERATING EXPENSES​ 1,840,851​ 1,589,846​ 1,311,046​​​​​​​​​​OPERATING INCOME​ 1,953,355​ 1,584,721​ 1,797,467​​​​​​​​​​INTEREST AND OTHER INCOME (EXPENSE), NET​ 115,127​ (12,757)​ 3,952​​​​​​​​​​INCOME BEFORE PROVISION FOR INCOME TAXES​ 2,068,482​ 1,571,964​ 1,801,419​​​​​​​​​​PROVISION FOR INCOME TAXES​​ 437,494​​ 380,340​​ 423,944​​​​​​​​​​NET INCOME​$ 1,630,988​$ 1,191,624​$ 1,377,475​​​​​​​​​​NET INCOME PER COMMON SHARE1:​​​​​​​​​Basic​$ 1.56​$ 1.13​$ 1.30Diluted​$ 1.54​$ 1.12​$ 1.29​​​​​​​​​​WEIGHTED AVERAGE NUMBER OF SHARES OF COMMON STOCK AND COMMON STOCK EQUIVALENTS1:​​​​​​​​​Basic​ 1,044,887​ 1,053,558​ 1,057,526Diluted​ 1,057,981​ 1,066,442​ 1,071,278​1Stock Split - The accompanying consolidated financial statements and notes thereto have been retroactively updated to reflect the Stock Split. See Note 1 for additional information.See accompanying notes to consolidated financial statements.​ **Current (2025):** ​ $ 7,719,089 $ 9,686,522 ​ See accompanying notes to consolidated financial statements. ​ 76 76 Table of ContentsMONSTER BEVERAGE CORPORATION AND SUBSIDIARIESCONSOLIDATED STATEMENTS OF INCOMEFOR THE YEARS ENDED DECEMBER 31, 2024, 2023 AND 2022(In Thousands, Except Per Share Amounts)​​​​​​​​​​​ 2024 2023 2022​​​​​​​​​​NET SALES​$ 7,492,709​$ 7,140,027​$ 6,311,050​​​​​​​​​​COST OF SALES​ 3,443,831​ 3,345,821​ 3,136,483​​​​​​​​​​GROSS PROFIT​ 4,048,878​ 3,794,206​ 3,174,567​​​​​​​​​​OPERATING EXPENSES​ 2,118,584​ 1,840,851​ 1,589,846​​​​​​​​​​OPERATING INCOME​ 1,930,294​ 1,953,355​ 1,584,721​​​​​​​​​​INTEREST AND OTHER INCOME (EXPENSE), NET​ 59,165​ 115,127​ (12,757)​​​​​​​​​​INCOME BEFORE PROVISION FOR INCOME TAXES​ 1,989,459​ 2,068,482​ 1,571,964​​​​​​​​​​PROVISION FOR INCOME TAXES​​ 480,411​​ 437,494​​ 380,340​​​​​​​​​​NET INCOME​$ 1,509,048​$ 1,630,988​$ 1,191,624​​​​​​​​​​NET INCOME PER COMMON SHARE:​​​​​​​​​Basic​$ 1.50​$ 1.56​$ 1.13Diluted​$ 1.49​$ 1.54​$ 1.12​​​​​​​​​​WEIGHTED AVERAGE NUMBER OF SHARES OF COMMON STOCK AND COMMON STOCK EQUIVALENTS:​​​​​​​​​Basic​ 1,004,566​ 1,044,887​ 1,053,558Diluted​ 1,013,107​ 1,057,981​ 1,066,442​See accompanying notes to consolidated financial statements.​77 Table of Contents Table of Contents Table of Contents MONSTER BEVERAGE CORPORATION AND SUBSIDIARIESCONSOLIDATED STATEMENTS OF INCOMEFOR THE YEARS ENDED DECEMBER 31, 2024, 2023 AND 2022(In Thousands, Except Per Share Amounts)​​​​​​​​​​​ 2024 2023 2022​​​​​​​​​​NET SALES​$ 7,492,709​$ 7,140,027​$ 6,311,050​​​​​​​​​​COST OF SALES​ 3,443,831​ 3,345,821​ 3,136,483​​​​​​​​​​GROSS PROFIT​ 4,048,878​ 3,794,206​ 3,174,567​​​​​​​​​​OPERATING EXPENSES​ 2,118,584​ 1,840,851​ 1,589,846​​​​​​​​​​OPERATING INCOME​ 1,930,294​ 1,953,355​ 1,584,721​​​​​​​​​​INTEREST AND OTHER INCOME (EXPENSE), NET​ 59,165​ 115,127​ (12,757)​​​​​​​​​​INCOME BEFORE PROVISION FOR INCOME TAXES​ 1,989,459​ 2,068,482​ 1,571,964​​​​​​​​​​PROVISION FOR INCOME TAXES​​ 480,411​​ 437,494​​ 380,340​​​​​​​​​​NET INCOME​$ 1,509,048​$ 1,630,988​$ 1,191,624​​​​​​​​​​NET INCOME PER COMMON SHARE:​​​​​​​​​Basic​$ 1.50​$ 1.56​$ 1.13Diluted​$ 1.49​$ 1.54​$ 1.12​​​​​​​​​​WEIGHTED AVERAGE NUMBER OF SHARES OF COMMON STOCK AND COMMON STOCK EQUIVALENTS:​​​​​​​​​Basic​ 1,004,566​ 1,044,887​ 1,053,558Diluted​ 1,013,107​ 1,057,981​ 1,066,442​See accompanying notes to consolidated financial statements.​ MONSTER BEVERAGE CORPORATION AND SUBSIDIARIESCONSOLIDATED STATEMENTS OF INCOMEFOR THE YEARS ENDED DECEMBER 31, 2024, 2023 AND 2022(In Thousands, Except Per Share Amounts)​​​​​​​​​​​ 2024 2023 2022​​​​​​​​​​NET SALES​$ 7,492,709​$ 7,140,027​$ 6,311,050​​​​​​​​​​COST OF SALES​ 3,443,831​ 3,345,821​ 3,136,483​​​​​​​​​​GROSS PROFIT​ 4,048,878​ 3,794,206​ 3,174,567​​​​​​​​​​OPERATING EXPENSES​ 2,118,584​ 1,840,851​ 1,589,846​​​​​​​​​​OPERATING INCOME​ 1,930,294​ 1,953,355​ 1,584,721​​​​​​​​​​INTEREST AND OTHER INCOME (EXPENSE), NET​ 59,165​ 115,127​ (12,757)​​​​​​​​​​INCOME BEFORE PROVISION FOR INCOME TAXES​ 1,989,459​ 2,068,482​ 1,571,964​​​​​​​​​​PROVISION FOR INCOME TAXES​​ 480,411​​ 437,494​​ 380,340​​​​​​​​​​NET INCOME​$ 1,509,048​$ 1,630,988​$ 1,191,624​​​​​​​​​​NET INCOME PER COMMON SHARE:​​​​​​​​​Basic​$ 1.50​$ 1.56​$ 1.13Diluted​$ 1.49​$ 1.54​$ 1.12​​​​​​​​​​WEIGHTED AVERAGE NUMBER OF SHARES OF COMMON STOCK AND COMMON STOCK EQUIVALENTS:​​​​​​​​​Basic​ 1,004,566​ 1,044,887​ 1,053,558Diluted​ 1,013,107​ 1,057,981​ 1,066,442​See accompanying notes to consolidated financial statements.​ --- ## Modified: (Tabular Dollars in Thousands, Except Per Share Amounts) **Key changes:** - Reworded sentence: "​ 5.INVESTMENTSThe Company held no short-term or long-term investments at December 31, 2024." - Reworded sentence: "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 years ended December 31, 2024, 2023 and 2022, realized gains or losses recognized on the sale of investments were not significant." **Prior (2024):** ​ The following table outlines maturities of the Company's lease liabilities as of December 31, 2023:​​​​​​​​​ Undiscounted Future Lease Payments​​Operating Leases Finance Leases2024​$ 13,490​$ 6,6012025​ 11,555​ 172026​ 9,522​ 22027​​ 9,216​​ - 2028​ 7,706​ - 2029 and thereafter​​ 17,822​​ - Total lease payments​ 69,311​ 6,620Less imputed interest​ (9,764)​ (152)Total​$ 59,547​$ 6,468​As of December 31, 2023, the Company did not have any significant leases that had not yet commenced.​5. INVESTMENTSThe following table summarizes the Company's investments at:​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​Continuous​Continuous​​​​​Gross​Gross​​​​Unrealized​Unrealized​​​​​Unrealized​Unrealized​​​​Loss Position​Loss Position​​Amortized​Holding​Holding​Fair​less than 12​greater than December 31, 2023 Cost Gains Losses Value Months 12 MonthsAvailable-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​$ - ​ The following table outlines maturities of the Company's lease liabilities as of December 31, 2023: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Undiscounted Future Lease Payments ​ ​ Operating Leases Finance Leases 2024 ​ $ 13,490 ​ $ 6,601 2025 ​ 11,555 ​ 17 2026 ​ 9,522 ​ 2 2027 ​ ​ 9,216 ​ ​ - 2028 ​ 7,706 ​ - 2029 and thereafter ​ ​ 17,822 ​ ​ - Total lease payments Total lease payments ​ 69,311 ​ 6,620 Less imputed interest Less imputed interest ​ (9,764) ​ (152) Total ​ $ 59,547 ​ $ 6,468 ​ As of December 31, 2023, the Company did not have any significant leases that had not yet commenced. ​ **Current (2025):** ​ 5.INVESTMENTSThe Company held no short-term or long-term investments at December 31, 2024. The following table summarizes the Company's investments at December 31, 2023.​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​Continuous​Continuous​​​​​Gross​Gross​​​​Unrealized​Unrealized​​​​​Unrealized​Unrealized​​​​Loss Position​Loss Position​​Amortized​Holding​Holding​Fair​less than 12​greater than December 31, 2023 Cost Gains Losses Value Months 12 MonthsAvailable-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 years ended December 31, 2024, 2023 and 2022, 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 Company held no short-term or long-term investments at December 31, 2024. The following table summarizes the underlying contractual maturities of the Company's investments at December 31, 2023.​​​​​​​​​​December 31, 2023​ Amortized Cost Fair ValueLess than 1 year:​​​​​​Commercial paper​$ 163,775​$ 163,774Municipal securities​ 361​ 361U.S. government agency securities​ 116,524​ 116,548Certificates of deposit ​ 15,590​ 15,590U.S. treasuries​​ 412,936​​ 412,057Corporate bonds​​ 247,340​​ 247,275Due 1 - 10 years:​​​​​​U.S. treasuries​​ 35,896​​ 35,967U.S. government agency securities​ 23,485​ 23,531Corporate bonds​​ 16,903​​ 16,933Total​$ 1,032,810​$ 1,032,036​​ 5.INVESTMENTSThe Company held no short-term or long-term investments at December 31, 2024. The following table summarizes the Company's investments at December 31, 2023.​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​Continuous​Continuous​​​​​Gross​Gross​​​​Unrealized​Unrealized​​​​​Unrealized​Unrealized​​​​Loss Position​Loss Position​​Amortized​Holding​Holding​Fair​less than 12​greater than December 31, 2023 Cost Gains Losses Value Months 12 MonthsAvailable-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 years ended December 31, 2024, 2023 and 2022, 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 Company held no short-term or long-term investments at December 31, 2024. The following table summarizes the underlying contractual maturities of the Company's investments at December 31, 2023.​​​​​​​​​​December 31, 2023​ Amortized Cost Fair ValueLess than 1 year:​​​​​​Commercial paper​$ 163,775​$ 163,774Municipal securities​ 361​ 361U.S. government agency securities​ 116,524​ 116,548Certificates of deposit ​ 15,590​ 15,590U.S. treasuries​​ 412,936​​ 412,057Corporate bonds​​ 247,340​​ 247,275Due 1 - 10 years:​​​​​​U.S. treasuries​​ 35,896​​ 35,967U.S. government agency securities​ 23,485​ 23,531Corporate bonds​​ 16,903​​ 16,933Total​$ 1,032,810​$ 1,032,036​​ --- ## Modified: Basis for Opinion **Key changes:** - Reworded sentence: "Our responsibility is to express an opinion on the Company's financial statements based on our audit." - Reworded sentence: "We conducted our audit in accordance with the standards of the PCAOB." - Reworded sentence: "Our audit included performing procedures to assess the risks of material misstatement of the financial statements, whether due to error or fraud, and performing procedures that respond to those risks." - Reworded sentence: "Our audit also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the financial statements." - Reworded sentence: "​ 75 75 Table of ContentsMONSTER BEVERAGE CORPORATION AND SUBSIDIARIESCONSOLIDATED BALANCE SHEETSAS OF DECEMBER 31, 2024 AND 2023 (In Thousands, Except Par Value)​​​​​​​​​December 31, ​December 31, ​ 2024 2023ASSETS​​​​​​CURRENT ASSETS:​​​​​​Cash and cash equivalents​$ 1,533,287​$ 2,297,675Short-term investments​ - 955,605Accounts receivable, net​ 1,221,646 1,193,964Inventories​ 737,107 971,406Prepaid expenses and other current assets​ 107,262 116,195Prepaid income taxes​ 42,202 54,151Total current assets​ 3,641,504 5,588,996​​​​​​​INVESTMENTS​ - 76,431PROPERTY AND EQUIPMENT, net​ 1,047,024 890,796DEFERRED INCOME TAXES, net​ 184,260 175,003GOODWILL​ 1,331,643 1,417,941OTHER INTANGIBLE ASSETS, net​ 1,414,252 1,427,139OTHER ASSETS​ 100,406 110,216Total Assets​$ 7,719,089 $ 9,686,522​​​​​​​LIABILITIES AND STOCKHOLDERS' EQUITY​​​​​​CURRENT LIABILITIES:​​​​​​Accounts payable​$ 466,775 $ 564,379Accrued liabilities​ 220,764 183,988Accrued promotional allowances​ 267,711 269,061Deferred revenue​ 45,809 41,914Accrued compensation​ 92,454 87,392Income taxes payable​ 4,006 14,955Total current liabilities​ 1,097,519 1,161,689​​​​​​​DEFERRED REVENUE​ 179,008 204,251​​​​​​​OTHER LIABILITIES​​ 110,893​​ 91,838​​​​​​​LONG-TERM DEBT​​ 373,951​​ - ​​​​​​​COMMITMENTS AND CONTINGENCIES (Note 13)​​​​​​​​​​​​​STOCKHOLDERS' EQUITY:​​​​​​Common stock - $0.005 par value; 5,000,000 shares authorized;1,126,329 shares issued and 973,079 shares outstanding as of December 31, 2024;1,122,592 shares issued and 1,041,571 shares outstanding as of December 31, 2023​​ 5,632​​ 5,613Additional paid-in capital​ 5,144,922 4,975,115Retained earnings​ 7,448,784 5,939,736Accumulated other comprehensive loss​ (269,487) (125,337)Common stock in treasury, at cost; 153,250 shares and 81,021 shares as of December 31, 2024 and December 31, 2023, respectively ​ (6,372,133) (2,566,383)Total stockholders' equity​ 5,957,718 8,228,744Total Liabilities and Stockholders' Equity​$ 7,719,089 $ 9,686,522​See accompanying notes to consolidated financial statements.​76 Table of Contents Table of Contents Table of Contents MONSTER BEVERAGE CORPORATION AND SUBSIDIARIESCONSOLIDATED BALANCE SHEETSAS OF DECEMBER 31, 2024 AND 2023 (In Thousands, Except Par Value)​​​​​​​​​December 31, ​December 31, ​ 2024 2023ASSETS​​​​​​CURRENT ASSETS:​​​​​​Cash and cash equivalents​$ 1,533,287​$ 2,297,675Short-term investments​ - 955,605Accounts receivable, net​ 1,221,646 1,193,964Inventories​ 737,107 971,406Prepaid expenses and other current assets​ 107,262 116,195Prepaid income taxes​ 42,202 54,151Total current assets​ 3,641,504 5,588,996​​​​​​​INVESTMENTS​ - 76,431PROPERTY AND EQUIPMENT, net​ 1,047,024 890,796DEFERRED INCOME TAXES, net​ 184,260 175,003GOODWILL​ 1,331,643 1,417,941OTHER INTANGIBLE ASSETS, net​ 1,414,252 1,427,139OTHER ASSETS​ 100,406 110,216Total Assets​$ 7,719,089 $ 9,686,522​​​​​​​LIABILITIES AND STOCKHOLDERS' EQUITY​​​​​​CURRENT LIABILITIES:​​​​​​Accounts payable​$ 466,775 $ 564,379Accrued liabilities​ 220,764 183,988Accrued promotional allowances​ 267,711 269,061Deferred revenue​ 45,809 41,914Accrued compensation​ 92,454 87,392Income taxes payable​ 4,006 14,955Total current liabilities​ 1,097,519 1,161,689​​​​​​​DEFERRED REVENUE​ 179,008 204,251​​​​​​​OTHER LIABILITIES​​ 110,893​​ 91,838​​​​​​​LONG-TERM DEBT​​ 373,951​​ - ​​​​​​​COMMITMENTS AND CONTINGENCIES (Note 13)​​​​​​​​​​​​​STOCKHOLDERS' EQUITY:​​​​​​Common stock - $0.005 par value; 5,000,000 shares authorized;1,126,329 shares issued and 973,079 shares outstanding as of December 31, 2024;1,122,592 shares issued and 1,041,571 shares outstanding as of December 31, 2023​​ 5,632​​ 5,613Additional paid-in capital​ 5,144,922 4,975,115Retained earnings​ 7,448,784 5,939,736Accumulated other comprehensive loss​ (269,487) (125,337)Common stock in treasury, at cost; 153,250 shares and 81,021 shares as of December 31, 2024 and December 31, 2023, respectively ​ (6,372,133) (2,566,383)Total stockholders' equity​ 5,957,718 8,228,744Total Liabilities and Stockholders' Equity​$ 7,719,089 $ 9,686,522​See accompanying notes to consolidated financial statements.​ MONSTER BEVERAGE CORPORATION AND SUBSIDIARIESCONSOLIDATED BALANCE SHEETSAS OF DECEMBER 31, 2024 AND 2023 (In Thousands, Except Par Value)​​​​​​​​​December 31, ​December 31, ​ 2024 2023ASSETS​​​​​​CURRENT ASSETS:​​​​​​Cash and cash equivalents​$ 1,533,287​$ 2,297,675Short-term investments​ - 955,605Accounts receivable, net​ 1,221,646 1,193,964Inventories​ 737,107 971,406Prepaid expenses and other current assets​ 107,262 116,195Prepaid income taxes​ 42,202 54,151Total current assets​ 3,641,504 5,588,996​​​​​​​INVESTMENTS​ - 76,431PROPERTY AND EQUIPMENT, net​ 1,047,024 890,796DEFERRED INCOME TAXES, net​ 184,260 175,003GOODWILL​ 1,331,643 1,417,941OTHER INTANGIBLE ASSETS, net​ 1,414,252 1,427,139OTHER ASSETS​ 100,406 110,216Total Assets​$ 7,719,089 $ 9,686,522​​​​​​​LIABILITIES AND STOCKHOLDERS' EQUITY​​​​​​CURRENT LIABILITIES:​​​​​​Accounts payable​$ 466,775 $ 564,379Accrued liabilities​ 220,764 183,988Accrued promotional allowances​ 267,711 269,061Deferred revenue​ 45,809 41,914Accrued compensation​ 92,454 87,392Income taxes payable​ 4,006 14,955Total current liabilities​ 1,097,519 1,161,689​​​​​​​DEFERRED REVENUE​ 179,008 204,251​​​​​​​OTHER LIABILITIES​​ 110,893​​ 91,838​​​​​​​LONG-TERM DEBT​​ 373,951​​ - ​​​​​​​COMMITMENTS AND CONTINGENCIES (Note 13)​​​​​​​​​​​​​STOCKHOLDERS' EQUITY:​​​​​​Common stock - $0.005 par value; 5,000,000 shares authorized;1,126,329 shares issued and 973,079 shares outstanding as of December 31, 2024;1,122,592 shares issued and 1,041,571 shares outstanding as of December 31, 2023​​ 5,632​​ 5,613Additional paid-in capital​ 5,144,922 4,975,115Retained earnings​ 7,448,784 5,939,736Accumulated other comprehensive loss​ (269,487) (125,337)Common stock in treasury, at cost; 153,250 shares and 81,021 shares as of December 31, 2024 and December 31, 2023, respectively ​ (6,372,133) (2,566,383)Total stockholders' equity​ 5,957,718 8,228,744Total Liabilities and Stockholders' Equity​$ 7,719,089 $ 9,686,522​See accompanying notes to consolidated financial statements.​" **Prior (2024):** These financial statements are the responsibility of the Company's management. Our responsibility is to express an opinion on the Company's financial statements based on our audits. We are a public accounting firm registered with the PCAOB and are required to be independent with respect to the Company in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB. We conducted our audits in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement, whether due to error or fraud. Our audits included performing procedures to assess the risks of material misstatement of the financial statements, whether due to error or fraud, and performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements. Our audits also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the financial statements. We believe that our audits provide a reasonable basis for our opinion. /s/ DELOITTE & TOUCHE LLP Costa Mesa, California March 1, 2023 We began serving as the Company's auditor in 1991. In 2023, we became the predecessor auditor. ​ 80 80 Table of ContentsMONSTER BEVERAGE CORPORATION AND SUBSIDIARIESCONSOLIDATED BALANCE SHEETSAS OF DECEMBER 31, 2023 AND 2022 (In Thousands, Except Par Value)​​​​​​​​​December 31, ​December 31, ​ 2023 2022ASSETS​​​​​​CURRENT ASSETS:​​​​​​Cash and cash equivalents​$ 2,297,675​$ 1,307,141Short-term investments​ 955,605 1,362,314Accounts receivable, net​ 1,193,964 1,016,203Inventories​ 971,406 935,631Prepaid expenses and other current assets​ 116,195 109,823Prepaid income taxes​ 54,151 33,785Total current assets​ 5,588,996 4,764,897​​​​​​​INVESTMENTS​ 76,431 61,443PROPERTY AND EQUIPMENT, net​ 890,796 516,897DEFERRED INCOME TAXES, net​ 175,003 177,039GOODWILL​ 1,417,941 1,417,941OTHER INTANGIBLE ASSETS, net​ 1,427,139 1,220,410OTHER ASSETS​ 110,216 134,478Total Assets​$ 9,686,522 $ 8,293,105​​​​​​​LIABILITIES AND STOCKHOLDERS' EQUITY​​​​​​CURRENT LIABILITIES:​​​​​​Accounts payable​$ 564,379 $ 444,265Accrued liabilities​ 183,988 172,991Accrued promotional allowances​ 269,061 255,631Deferred revenue​ 41,914 43,311Accrued compensation​ 87,392 72,463Income taxes payable​ 14,955 13,317Total current liabilities​ 1,161,689 1,001,978​​​​​​​DEFERRED REVENUE​ 204,251 223,800​​​​​​​OTHER LIABILITIES​​ 91,838​​ 42,286​​​​​​​COMMITMENTS AND CONTINGENCIES (Note 13)​​​​​​​​​​​​​STOCKHOLDERS' EQUITY1:​​​​​​Common stock - $0.005 par value; 5,000,000 shares authorized; 1,122,592 shares issued and 1,041,571 shares outstanding as of December 31, 2023;1,283,688 shares issued and 1,044,600 shares outstanding as of December 31, 2022​​ 5,613​​ 6,418Additional paid-in capital​ 4,975,115 4,776,804Retained earnings​ 5,939,736 9,001,173Accumulated other comprehensive loss​ (125,337) (159,073)Common stock in treasury, at cost; 81,021 shares and 239,088 shares as of December 31, 2023 and December 31, 2022, respectively ​ (2,566,383) (6,600,281)Total stockholders' equity​ 8,228,744 7,025,041Total Liabilities and Stockholders' Equity​$ 9,686,522 $ 8,293,105​1Stock Split - On February 28, 2023, the Company announced a two-for-one stock split of its common stock to be effected in the form of a 100% stock dividend. The stock dividend was issued on March 27, 2023 (the "Stock Split"). The accompanying consolidated financial statements and notes thereto have been retroactively updated to reflect the Stock Split. See Note 1 for additional information.See accompanying notes to consolidated financial statements.​81 Table of Contents Table of Contents Table of Contents MONSTER BEVERAGE CORPORATION AND SUBSIDIARIESCONSOLIDATED BALANCE SHEETSAS OF DECEMBER 31, 2023 AND 2022 (In Thousands, Except Par Value)​​​​​​​​​December 31, ​December 31, ​ 2023 2022ASSETS​​​​​​CURRENT ASSETS:​​​​​​Cash and cash equivalents​$ 2,297,675​$ 1,307,141Short-term investments​ 955,605 1,362,314Accounts receivable, net​ 1,193,964 1,016,203Inventories​ 971,406 935,631Prepaid expenses and other current assets​ 116,195 109,823Prepaid income taxes​ 54,151 33,785Total current assets​ 5,588,996 4,764,897​​​​​​​INVESTMENTS​ 76,431 61,443PROPERTY AND EQUIPMENT, net​ 890,796 516,897DEFERRED INCOME TAXES, net​ 175,003 177,039GOODWILL​ 1,417,941 1,417,941OTHER INTANGIBLE ASSETS, net​ 1,427,139 1,220,410OTHER ASSETS​ 110,216 134,478Total Assets​$ 9,686,522 $ 8,293,105​​​​​​​LIABILITIES AND STOCKHOLDERS' EQUITY​​​​​​CURRENT LIABILITIES:​​​​​​Accounts payable​$ 564,379 $ 444,265Accrued liabilities​ 183,988 172,991Accrued promotional allowances​ 269,061 255,631Deferred revenue​ 41,914 43,311Accrued compensation​ 87,392 72,463Income taxes payable​ 14,955 13,317Total current liabilities​ 1,161,689 1,001,978​​​​​​​DEFERRED REVENUE​ 204,251 223,800​​​​​​​OTHER LIABILITIES​​ 91,838​​ 42,286​​​​​​​COMMITMENTS AND CONTINGENCIES (Note 13)​​​​​​​​​​​​​STOCKHOLDERS' EQUITY1:​​​​​​Common stock - $0.005 par value; 5,000,000 shares authorized; 1,122,592 shares issued and 1,041,571 shares outstanding as of December 31, 2023;1,283,688 shares issued and 1,044,600 shares outstanding as of December 31, 2022​​ 5,613​​ 6,418Additional paid-in capital​ 4,975,115 4,776,804Retained earnings​ 5,939,736 9,001,173Accumulated other comprehensive loss​ (125,337) (159,073)Common stock in treasury, at cost; 81,021 shares and 239,088 shares as of December 31, 2023 and December 31, 2022, respectively ​ (2,566,383) (6,600,281)Total stockholders' equity​ 8,228,744 7,025,041Total Liabilities and Stockholders' Equity​$ 9,686,522 $ 8,293,105​1Stock Split - On February 28, 2023, the Company announced a two-for-one stock split of its common stock to be effected in the form of a 100% stock dividend. The stock dividend was issued on March 27, 2023 (the "Stock Split"). The accompanying consolidated financial statements and notes thereto have been retroactively updated to reflect the Stock Split. See Note 1 for additional information.See accompanying notes to consolidated financial statements.​ **Current (2025):** These financial statements are the responsibility of the Company's management. Our responsibility is to express an opinion on the Company's financial statements based on our audit. We are a public accounting firm registered with the PCAOB and are required to be independent with respect to the Company in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB. We conducted our audit in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement, whether due to error or fraud. Our audit included performing procedures to assess the risks of material misstatement of the financial statements, whether due to error or fraud, and performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements. Our audit also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the financial statements. We believe that our audit provides a reasonable basis for our opinion. /s/ DELOITTE & TOUCHE LLP DELOITTE & TOUCHE LLP Costa Mesa, California Costa Mesa, California March 1, 2023 We began serving as the Company's auditor in 1991. In 2023, we became the predecessor auditor. ​ 75 75 Table of ContentsMONSTER BEVERAGE CORPORATION AND SUBSIDIARIESCONSOLIDATED BALANCE SHEETSAS OF DECEMBER 31, 2024 AND 2023 (In Thousands, Except Par Value)​​​​​​​​​December 31, ​December 31, ​ 2024 2023ASSETS​​​​​​CURRENT ASSETS:​​​​​​Cash and cash equivalents​$ 1,533,287​$ 2,297,675Short-term investments​ - 955,605Accounts receivable, net​ 1,221,646 1,193,964Inventories​ 737,107 971,406Prepaid expenses and other current assets​ 107,262 116,195Prepaid income taxes​ 42,202 54,151Total current assets​ 3,641,504 5,588,996​​​​​​​INVESTMENTS​ - 76,431PROPERTY AND EQUIPMENT, net​ 1,047,024 890,796DEFERRED INCOME TAXES, net​ 184,260 175,003GOODWILL​ 1,331,643 1,417,941OTHER INTANGIBLE ASSETS, net​ 1,414,252 1,427,139OTHER ASSETS​ 100,406 110,216Total Assets​$ 7,719,089 $ 9,686,522​​​​​​​LIABILITIES AND STOCKHOLDERS' EQUITY​​​​​​CURRENT LIABILITIES:​​​​​​Accounts payable​$ 466,775 $ 564,379Accrued liabilities​ 220,764 183,988Accrued promotional allowances​ 267,711 269,061Deferred revenue​ 45,809 41,914Accrued compensation​ 92,454 87,392Income taxes payable​ 4,006 14,955Total current liabilities​ 1,097,519 1,161,689​​​​​​​DEFERRED REVENUE​ 179,008 204,251​​​​​​​OTHER LIABILITIES​​ 110,893​​ 91,838​​​​​​​LONG-TERM DEBT​​ 373,951​​ - ​​​​​​​COMMITMENTS AND CONTINGENCIES (Note 13)​​​​​​​​​​​​​STOCKHOLDERS' EQUITY:​​​​​​Common stock - $0.005 par value; 5,000,000 shares authorized;1,126,329 shares issued and 973,079 shares outstanding as of December 31, 2024;1,122,592 shares issued and 1,041,571 shares outstanding as of December 31, 2023​​ 5,632​​ 5,613Additional paid-in capital​ 5,144,922 4,975,115Retained earnings​ 7,448,784 5,939,736Accumulated other comprehensive loss​ (269,487) (125,337)Common stock in treasury, at cost; 153,250 shares and 81,021 shares as of December 31, 2024 and December 31, 2023, respectively ​ (6,372,133) (2,566,383)Total stockholders' equity​ 5,957,718 8,228,744Total Liabilities and Stockholders' Equity​$ 7,719,089 $ 9,686,522​See accompanying notes to consolidated financial statements.​76 Table of Contents Table of Contents Table of Contents MONSTER BEVERAGE CORPORATION AND SUBSIDIARIESCONSOLIDATED BALANCE SHEETSAS OF DECEMBER 31, 2024 AND 2023 (In Thousands, Except Par Value)​​​​​​​​​December 31, ​December 31, ​ 2024 2023ASSETS​​​​​​CURRENT ASSETS:​​​​​​Cash and cash equivalents​$ 1,533,287​$ 2,297,675Short-term investments​ - 955,605Accounts receivable, net​ 1,221,646 1,193,964Inventories​ 737,107 971,406Prepaid expenses and other current assets​ 107,262 116,195Prepaid income taxes​ 42,202 54,151Total current assets​ 3,641,504 5,588,996​​​​​​​INVESTMENTS​ - 76,431PROPERTY AND EQUIPMENT, net​ 1,047,024 890,796DEFERRED INCOME TAXES, net​ 184,260 175,003GOODWILL​ 1,331,643 1,417,941OTHER INTANGIBLE ASSETS, net​ 1,414,252 1,427,139OTHER ASSETS​ 100,406 110,216Total Assets​$ 7,719,089 $ 9,686,522​​​​​​​LIABILITIES AND STOCKHOLDERS' EQUITY​​​​​​CURRENT LIABILITIES:​​​​​​Accounts payable​$ 466,775 $ 564,379Accrued liabilities​ 220,764 183,988Accrued promotional allowances​ 267,711 269,061Deferred revenue​ 45,809 41,914Accrued compensation​ 92,454 87,392Income taxes payable​ 4,006 14,955Total current liabilities​ 1,097,519 1,161,689​​​​​​​DEFERRED REVENUE​ 179,008 204,251​​​​​​​OTHER LIABILITIES​​ 110,893​​ 91,838​​​​​​​LONG-TERM DEBT​​ 373,951​​ - ​​​​​​​COMMITMENTS AND CONTINGENCIES (Note 13)​​​​​​​​​​​​​STOCKHOLDERS' EQUITY:​​​​​​Common stock - $0.005 par value; 5,000,000 shares authorized;1,126,329 shares issued and 973,079 shares outstanding as of December 31, 2024;1,122,592 shares issued and 1,041,571 shares outstanding as of December 31, 2023​​ 5,632​​ 5,613Additional paid-in capital​ 5,144,922 4,975,115Retained earnings​ 7,448,784 5,939,736Accumulated other comprehensive loss​ (269,487) (125,337)Common stock in treasury, at cost; 153,250 shares and 81,021 shares as of December 31, 2024 and December 31, 2023, respectively ​ (6,372,133) (2,566,383)Total stockholders' equity​ 5,957,718 8,228,744Total Liabilities and Stockholders' Equity​$ 7,719,089 $ 9,686,522​See accompanying notes to consolidated financial statements.​ MONSTER BEVERAGE CORPORATION AND SUBSIDIARIESCONSOLIDATED BALANCE SHEETSAS OF DECEMBER 31, 2024 AND 2023 (In Thousands, Except Par Value)​​​​​​​​​December 31, ​December 31, ​ 2024 2023ASSETS​​​​​​CURRENT ASSETS:​​​​​​Cash and cash equivalents​$ 1,533,287​$ 2,297,675Short-term investments​ - 955,605Accounts receivable, net​ 1,221,646 1,193,964Inventories​ 737,107 971,406Prepaid expenses and other current assets​ 107,262 116,195Prepaid income taxes​ 42,202 54,151Total current assets​ 3,641,504 5,588,996​​​​​​​INVESTMENTS​ - 76,431PROPERTY AND EQUIPMENT, net​ 1,047,024 890,796DEFERRED INCOME TAXES, net​ 184,260 175,003GOODWILL​ 1,331,643 1,417,941OTHER INTANGIBLE ASSETS, net​ 1,414,252 1,427,139OTHER ASSETS​ 100,406 110,216Total Assets​$ 7,719,089 $ 9,686,522​​​​​​​LIABILITIES AND STOCKHOLDERS' EQUITY​​​​​​CURRENT LIABILITIES:​​​​​​Accounts payable​$ 466,775 $ 564,379Accrued liabilities​ 220,764 183,988Accrued promotional allowances​ 267,711 269,061Deferred revenue​ 45,809 41,914Accrued compensation​ 92,454 87,392Income taxes payable​ 4,006 14,955Total current liabilities​ 1,097,519 1,161,689​​​​​​​DEFERRED REVENUE​ 179,008 204,251​​​​​​​OTHER LIABILITIES​​ 110,893​​ 91,838​​​​​​​LONG-TERM DEBT​​ 373,951​​ - ​​​​​​​COMMITMENTS AND CONTINGENCIES (Note 13)​​​​​​​​​​​​​STOCKHOLDERS' EQUITY:​​​​​​Common stock - $0.005 par value; 5,000,000 shares authorized;1,126,329 shares issued and 973,079 shares outstanding as of December 31, 2024;1,122,592 shares issued and 1,041,571 shares outstanding as of December 31, 2023​​ 5,632​​ 5,613Additional paid-in capital​ 5,144,922 4,975,115Retained earnings​ 7,448,784 5,939,736Accumulated other comprehensive loss​ (269,487) (125,337)Common stock in treasury, at cost; 153,250 shares and 81,021 shares as of December 31, 2024 and December 31, 2023, respectively ​ (6,372,133) (2,566,383)Total stockholders' equity​ 5,957,718 8,228,744Total Liabilities and Stockholders' Equity​$ 7,719,089 $ 9,686,522​See accompanying notes to consolidated financial statements.​ --- *Data sourced from SEC EDGAR. Last updated 2026-05-10.*