coke-ex991

AS OF DECEMBER 31, 2016 AND 2015 AND FOR EACH OF THE TWO YEARS ENDED DECEMBER 31, 2016

We have audited the accompanying combined abbreviated financial statements of CCR 2017 Carve-out Transactions – Production and Distribution, a business of The Coca-Cola Company, which comprise the combined statements of assets acquired and liabilities assumed as of December 31, 2016 and 2015, and the related combined statements of net revenues and direct operating expenses for each of the two years ended December 31, 2016, and the related notes to the combined abbreviated financial statements.

Management is responsible for the preparation and fair presentation of these financial statements in conformity with U.S. generally accepted accounting principles; this includes the design, implementation and maintenance of internal control relevant to the preparation and fair presentation of financial statements that are free of material misstatement, whether due to fraud or error.

Our responsibility is to express an opinion on these financial statements based on our audits. We conducted our audits in accordance with auditing standards generally accepted in the United States. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement.

An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial statements. The procedures selected depend on the auditor’s judgment, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error. In making those risk assessments, the auditor considers internal control relevant to the entity’s preparation and fair presentation of the financial statements in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the entity’s internal control. Accordingly, we express no such opinion. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of significant accounting estimates made by management, as well as evaluating the overall presentation of the financial statements.

We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion.

In our opinion, the financial statements referred to above present fairly, in all material respects, the combined statements of assets acquired and liabilities assumed of the CCR 2017 Carve-out Transactions – Production and Distribution at December 31, 2016 and 2015, and the related combined statements of net revenues and direct operating expenses for each of the two years ended December 31, 2016, in conformity with U.S. generally accepted accounting principles.

Year Ended December 31,	2016		2015
(In thousands)
NET REVENUES	$	1,049,882	$	955,489
Cost of goods sold		703,988		638,342
GROSS PROFIT		345,894		317,147
Selling, general and administrative expenses		287,783		270,190
NET REVENUES IN EXCESS OF DIRECT OPERATING EXPENSES	$	58,111	$	46,957

The accompanying notes are an integral part of these combined abbreviated financial statements.

December 31,	2016		2015
(In thousands)
ASSETS ACQUIRED
CURRENT ASSETS
Cash	$	580	$	574
Inventories		56,486		54,227
Prepaid and other current assets		3,259		4,512
TOTAL CURRENT ASSETS		60,325		59,313
Property, plant and equipment, net		304,795		306,620
Intangible assets, net		453,022		457,615
Other non-current assets		2,267		761
TOTAL ASSETS ACQUIRED		820,409		824,309
LIABILITIES ASSUMED
CURRENT LIABILITIES
Cooperative trade marketing ("CTM") liability		34,483		33,653
Accrued expenses		2,415		1,319
Accrued taxes		-		1,168
Deposit liabilities		4,567		2,635
TOTAL CURRENT LIABILITIES		41,465		38,775
Other non-current liabilities		126		22
ASSETS ACQUIRED AND LIABILITIES ASSUMED, NET	$	778,818	$	785,512

The accompanying notes are an integral part of these combined abbreviated financial statements.

NOTE 1: DESCRIPTION OF TRANSACTIONS, DESCRIPTION OF THE BUSINESS, AND BASIS OF PRESENTATION

On September 1, 2016, Coca-Cola Refreshments USA, Inc (“CCR”), a wholly-owned subsidiary of The Coca-Cola Company (the “Company” or “KO”), entered into the following two definitive agreements with Coca-Cola Bottling Co. Consolidated (“CCBCC”): (i) an asset purchase agreement (the “September 2016 Distribution APA”) that provides for the transfer of certain territory distribution rights and related tangible assets; and (ii) an asset purchase agreement (the “September 2016 Manufacturing APA”) that provides for the transfer of certain manufacturing rights for KO products and three regional manufacturing facilities.

In the first fiscal quarter of 2017, CCR closed on the following transfer of rights to CCBCC as part of the September 2016 Distribution APA and the September 2016 Manufacturing APA:

On April 13, 2017, CCR entered into the following definitive agreements with CCBCC: (i) an asset purchase agreement (the “April 2017 Distribution APA”) that provides for the transfer of certain territory distribution rights and related tangible assets; and (ii) an asset purchase agreement (the “April 2017 Manufacturing APA”) that provides for the transfer of certain manufacturing rights for KO products and one regional manufacturing facility.

On April 28, 2017, CCR closed on the following transfer of rights to CCBCC as part of the April 2017 Distribution APA and the April 2017 Manufacturing APA:

On September 29, 2017, CCR entered into the following definitive agreements with CCBCC: (i) an asset exchange agreement (the “CCR Asset Exchange Agreement”) that provides for the transfer of certain territory distribution rights in central and southern Arkansas and related tangible assets as well as certain manufacturing rights for KO products and two regional manufacturing facilities in Memphis, Tennessee and West Memphis, Arkansas in exchange for certain of CCBCC’s territory distribution rights in southern Alabama, southeastern Mississippi, southwestern Georgia and northwestern Florida and in and around Somerset, Kentucky and related tangible assets as well as a regional manufacturing facility in Mobile, Alabama and related manufacturing assets and certain associated liabilities (the “Deep South and Somerset Exchange Business”); and (ii) an asset purchase agreement (the “Memphis Purchase Agreement”) that provides for the transfer of certain territory distribution rights and related tangible assets.

On October 2, 2017, CCR closed on the following transfer of rights to CCBCC as part of the CCR Asset Exchange Agreement and the Memphis Purchase Agreement:

The transactions completed through October 2, 2017 pursuant to the September 2016 Distribution APA, September 2016 Manufacturing APA, April 2017 Distribution APA, April 2017 Manufacturing APA, CCR Asset Exchange Agreement and Memphis Purchase Agreement are collectively referred to herein as “CCR 2017 Carve-out Transactions – Production and Distribution” or the “APAs and AEA.” The aggregate territory and manufacturing operations covered by the APAs and AEA is collectively referred to herein as the “Business". Aggregate cash proceeds after deducting the value of certain retained assets and retained liabilities pursuant to the APAs and AEA approximated $282.2 million, excluding the impact of future sub-bottling payments and post-closing adjustments and net of the estimated aggregate value at closing after deducting the value of certain retained assets and retained liabilities of the Deep South and Somerset Exchange Business of $142.0 million. In connection with the APAs and AEA, CCBCC agreed to produce and transfer beverage products to certain third-party bottlers of KO beverages at prices unilaterally determined by KO. Future sub-bottling payments are quarterly payments from CCBCC to KO based on gross profit derived from sales of certain beverages and beverage products.

The Company is the world's largest beverage company, which owns or licenses and markets more than 500 nonalcoholic beverage brands, primarily sparkling beverages but also a variety of still beverages such as waters, enhanced waters, juices and juice drinks, ready-to-drink teas and coffees, and energy and sports drinks. Finished beverage products bearing the Company's trademarks are now sold in more than 200 countries. The Company makes its branded beverage products available to consumers throughout the world through its network of Company-owned or Company-controlled bottling and distribution operations as well as independent bottling partners, distributors, wholesalers and retailers-the world's largest beverage distribution system.

The Business produces, distributes, and markets bottled and canned beverages in Indiana, Ohio, Tennessee, Mississippi and Arkansas. It offers various beverages, including regular sparkling, zero, and low-calorie energy and sports drinks, waters, juices, fruit drinks, coffees, and teas.

In these combined abbreviated financial statements, the terms "we," "us" and "our" mean the Business. The accompanying combined statements of assets acquired and liabilities assumed and the related combined statements of net revenues and direct operating expenses of the Business are derived from KO's historical accounting records, which are maintained in accordance with accounting principles generally accepted in the United States ("U.S. GAAP"). These combined abbreviated financial statements are not intended to be a complete presentation and are not necessarily indicative of the financial position or results of operations that would have been achieved if the Business had operated as a separate, stand-alone entity as of or during any of the periods presented, nor are they indicative of the financial condition or results going forward due to the changes in the Business and the omission of certain operating expenses, as described below. Certain centrally provided services, which are shared by KO's business units, corporate functions, and other areas of KO are not

tracked or monitored in a manner that would enable the development of full financial statements required by Rule 3-05 of Regulation S-X. As such, it is not possible to provide a meaningful allocation of certain business unit and corporate costs, interest or tax and only costs directly related to the revenue-generating activities of the Business are included in these combined abbreviated financial statements.

The combined statements of assets acquired and liabilities assumed include only the specific assets and liabilities related to the Business that were acquired by CCBCC in accordance with the APAs and AEA, which included assets and liabilities exclusively related to or used in the Business. Items such as accounts receivable, deferred costs, accounts payable, and certain other assets and accrued liabilities are excluded from the transactions. Employees of the Business may participate in one or more defined benefit plans sponsored by the Company. CCBCC will not assume any portion of the benefit plans’ pension obligation, and no portion of plan assets or benefit obligation has been allocated to the Business. Cash acquired by CCBCC is limited to estimated amounts in vending machines upon divestiture by KO. The CTM liability (payables to other KO entities) will be assumed by CCBCC. Prepaid expenses represent balances specific to the Business that will be acquired by CCBCC. Fleet vehicles and vending equipment are often used to service multiple CCR distribution territories. Fleet vehicles and vending equipment, reported in the line item Property, plant & equipment, net in our combined statements of assets acquired and liabilities assumed, represent assets identified by us that most closely relate to operations of the Business. Intangible assets represent franchise rights and customer relationships that will be acquired by CCBCC.

The combined statements of net revenues and direct operating expenses include the net revenues and direct operating expenses directly attributable to the generation of revenues to Company-owned or -controlled, as well as independent bottlers (e.g. marketing, manufacturing and selling of concentrates and/or beverage bases necessary for the production of finished beverages of the Business). Cost of goods sold is based on the standard costs of the actual products sold with directly related manufacturing variances as well as an allocation of labor and overhead using reasonable allocation methods. The cost of freight to deliver finished products from production facilities to distribution centers has been estimated using national freight rates. Local freight rates may differ from the estimated national freight rates. Marketing expenses included as deductions from revenue and in selling, general and administrative expenses are primarily comprised of campaigns directly related to brands of the Business for which the right to distribute those brands will be granted to CCBCC.

Compensation expense for the dedicated employees that may be transferred to CCBCC is included in selling, general and administrative expenses. Allocations of other selling, general and administrative expenses directly related to the Business, including net periodic benefit costs related to participation by employees of the Business in defined benefit plans sponsored by the Company, are based on reasonable allocation methods. The combined statements of net revenues and direct operating expenses excludes the cost of general corporate activities, corporate level overhead, interest expense and income taxes. Future results of operations and financial position could differ materially from the historical amounts presented herein.

Statements of cash flows and statements of shareowners' equity are not presented as CCBCC did not acquire all of the assets nor assume all of the liabilities of the Business and the preparation of such statements is not meaningful. All cash flow requirements of the Business were funded by KO, and cash management functions were not performed at the Business level. Therefore, it is impracticable to present a statement of cash flows, including cash flows from operating, investing and financing activities, as the Business did not maintain cash balances of that nature.

In May 2014, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update ("ASU") 2014‑09, Revenue from Contracts with Customers, which will replace most existing revenue recognition guidance in U.S.

GAAP and is intended to improve and converge with international standards for the financial reporting requirements for revenue from contracts with customers. The core principle of ASU 2014-09 is that an entity should recognize revenue for the transfer of goods or services equal to the amount that it expects to be entitled to receive for those goods or services. ASU 2014-09 also requires additional disclosures about the nature, timing and uncertainty of revenue and cash flows arising from customer contracts, including significant judgments and changes in judgments. ASU 2014-09 allows for adoption either on a full retrospective basis to each prior reporting period presented or on a modified retrospective basis with the cumulative effect of initially applying the new guidance recognized at the date of initial application, which will be effective for the Business beginning January 1, 2019.

The Business plans to adopt ASU 2014-09 and its amendments on a modified retrospective basis and is continuing to assess all future impacts of the guidance by reviewing our current contracts with customers to identify potential differences that could result from applying the new guidance. Based on our preliminary review, we expect that ASU 2014-09's broad definition of variable consideration will require the Business to estimate and record certain variable payments resulting from collaborative funding arrangements, rebates and other pricing allowances earlier than it currently does. While we do not expect this change to have a material impact on net revenues on an annual basis, we do expect that it will have an impact on our revenue in interim periods. As we complete our overall assessment, the Business is also identifying and preparing to implement changes to our accounting policies and practices, business processes, systems and controls to support the new revenue recognition and disclosure requirements. Our assessment will be completed during fiscal year 2017.

In July 2015, the FASB issued ASU No. 2015-11, Inventory (Topic 330): Simplifying the Measurement of Inventory. ASU No. 2015-11 changes the measurement principle for inventory from the "lower of cost or market" to "lower of cost and net realizable value." Net realizable value is defined as the "estimated selling prices in the ordinary course of business, less reasonably predictable costs of completion, disposal and transportation." ASU No. 2015-11 eliminates the guidance that entities consider replacement cost or net realizable value less an approximately normal profit margin in the subsequent measurement of inventory when cost is determined on a first-in, first-out or average cost basis. It is effective for the Business for annual reporting periods beginning January 1, 2017, and interim periods within fiscal years beginning January 1, 2018. Early adoption is permitted. The adoption of ASU 2015-11 will not impact our combined abbreviated financial statements.

In February 2016, the FASB issued ASU 2016-02, Leases, which requires lessees to recognize on the balance sheet a right-of-use asset, representing their right to use the underlying asset for the lease term, and a lease liability for all leases with terms greater than 12 months. The guidance also requires qualitative and quantitative disclosures designed to assess the amount, timing and uncertainty of cash flows arising from leases. The standard requires the use of a modified retrospective transition approach, which includes a number of optional practical expedients that entities may elect to apply. ASU 2016-02 is effective for the Business for annual periods beginning January 1, 2020, and interim periods within fiscal years beginning January 1, 2021. We are currently evaluating the impact that ASU 2016-02 will have on our combined abbreviated financial statements.

The preparation of financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect amounts reported in the statements and accompanying notes. Actual results could differ from these estimates.

Revenue included in the combined statements of net revenues and direct operating expenses include sales of our finished beverage products to retailers, distributors, wholesalers, and bottling partners. We recognize revenue when persuasive evidence of an arrangement exists, delivery of products has occurred, the sales price charged is fixed or determinable, and collectability is reasonably assured. For the Business, this generally means that we recognize revenue when title to our products is transferred to our customers. In particular, title usually transfers upon shipment to or receipt at our customers’ locations, as determined by the specific sales terms of the transactions. Our sales terms do not allow for a right of return except for matters related to any manufacturing defects on our part.

Our customers can earn certain incentives including, but not limited to, cash discounts, funds for promotional and marketing activities, volume based incentive programs and support for infrastructure programs. The costs associated with these incentives are reflected as deductions from revenue, a component of net revenues in our combined statements of net revenues and direct operating expenses. For customer incentives that must be earned, management must make estimates related to the contractual terms, customer performance, and sales volume to determine the total amounts earned and to be recorded in deductions from revenue. In making these estimates, management considers past results. The actual amounts ultimately paid may be different from our estimates.

In some situations, the Business may determine it to be advantageous to make advanced payments to specific customers to fund certain marketing activities intended to generate profitable volume. The Business also makes advanced payments to certain customers for distribution rights. The advanced payments made to customers may be capitalized and reported in the line item prepaid and other current assets in our combined statements of assets acquired and liabilities assumed. The assets are amortized over the applicable periods and included in deductions from revenue. The duration of these agreements typically ranges up to 10 years.

Shipping and handling costs related to the movement of finished goods from manufacturing locations to our sales distribution centers are included in the line item cost of goods sold in our combined statements of net revenues and direct operating expenses. Shipping and handling costs incurred to move finished goods from our sales distribution centers to customer locations are included in the line item selling, general and administrative expenses in our combined statements of net revenues and direct operating expenses. During the years ended December 31, 2016 and 2015, the Business recorded shipping and handling costs of $75,698 and $68,983, respectively, in the line item selling, general and administrative expenses. Our customers do not pay us separately for shipping and handling costs related to finished goods.

Inventories consist primarily of raw materials, finished goods and spare parts used in our production facilities and for spare vending equipment. Inventories are valued at the lower of cost or market. We determine cost on the basis of the average cost or first-in, first-out methods. Refer to Note 4.

Property, plant and equipment is stated at cost. Depreciation is recorded principally by the straight-line method over the estimated useful lives of our assets, which are reviewed periodically and generally have the following ranges: buildings and improvements: 40 years or less; and machinery, equipment and vehicle fleet: 20 years or less. Land is not depreciated,

and construction in progress is not depreciated until it is ready for its intended use. Leasehold improvements are amortized using the straight-line method over the shorter of the remaining lease term, including renewals that are deemed to be reasonably assured, or the estimated useful life of the improvement. Repair and maintenance costs that do not improve service potential or extend economic life are expensed as incurred.

Certain events or changes in circumstances may indicate that the recoverability of the carrying amount of property, plant and equipment should be assessed, including, among others, a significant decrease in market value, a significant change in the business climate in a particular market, or a current period operating or cash flow loss combined with historical losses or projected future losses. When such events or changes in circumstances are present, we estimate the future cash flows expected to result from the use of the asset (or asset group) and its eventual disposition. These estimated future cash flows are consistent with those we use in our internal planning. If the sum of the expected future cash flows (undiscounted and without interest charges) is less than the carrying amount, we recognize an impairment loss. The impairment loss recognized is the amount by which the carrying amount exceeds the fair value. We use a variety of methodologies to determine the fair value of property, plant and equipment, including appraisals and discounted cash flow models, which are consistent with the assumptions we believe hypothetical marketplace participants would use. Refer to Note 5.

Intangible assets included in our accompanying combined statements of assets acquired and liabilities assumed relate to indefinite-lived franchise rights associated with the right to distribute Coca-Cola, Monster and Dr Pepper products, definite-lived franchise rights associated with the right to distribute other KO brands, and definite-lived customer relationships. The indefinite-lived franchise rights are not subject to amortization. The definite-lived franchise rights are amortized over their estimated useful lives of between seven and eight years, and customer relationships are amortized over their estimated useful lives of twenty years. Refer to Note 6.

We test intangible assets determined to have indefinite useful lives for impairment annually, or more frequently if events or circumstances indicate that assets might be impaired. We perform these annual impairment reviews as of the first day of our third fiscal quarter. We use a variety of methodologies in conducting impairment assessments of indefinite-lived intangible assets, including, but not limited to, discounted cash flow models, which are based on the assumptions we believe hypothetical marketplace participants would use. For indefinite-lived intangible assets, if the carrying amount exceeds the fair value, an impairment charge is recognized in an amount equal to that excess.

There were no impairment charges recognized for the years ended December 31, 2016 and 2015.

The Business is involved in various legal proceedings and tax matters. Due to their nature, such legal proceedings and tax matters involve inherent uncertainties including, but not limited to, court rulings, negotiations between affected parties and governmental actions. Management assesses the probability of loss for such contingencies and accrues a liability and/or discloses the relevant circumstances, as appropriate. Contingent liabilities will be retained by the Company and have been excluded from the combined abbreviated financial statements.

On August 14, 2014, the Company and Monster Beverage Corporation (“Monster”) entered into definitive agreements for a long-term strategic relationship in the global energy drink category. The transaction contemplated under these agreements ("Monster Transaction") closed on June 12, 2015. As a result of the Monster Transaction, (1) the Company purchased newly issued shares of Monster common stock representing approximately 17 percent of the outstanding shares of Monster common stock (after giving effect to the new issuance); (2) the Company sold its global energy drink business (including NOS, Full Throttle, Burn, Mother, Play and Power Play, and Relentless) to Monster, and the Company acquired Monster's non-energy drink business (including Hansen's Natural Sodas, Peace Tea, Hubert's Lemonade and Hansen's Juice Products); and (3) the parties amended their distribution coordination agreements to expand distribution of Monster products into additional territories pursuant to long-term agreements with the Company's existing network of Company-owned or -controlled bottling operations and distribution partners. The Coca-Cola system also became Monster's preferred global distribution partner. The consideration transferred comprised $2,150 million of cash and the fair value of the Company’s global energy drink business of $2,046 million, which was determined using discounted cash flow analyses, resulting in total consideration transferred of $4,196 million.

As a result of the Monster Transaction, the North America Coca-Cola system obtained the right to distribute Monster products in territories for which it was not previously the authorized distributor ("expanded territories"). Among others, the expanded territories include portions of Indiana, Ohio, Tennessee, Mississippi, and Arkansas, and the right to distribute Monster products in certain of these territories was included in the sale of the Business to CCBCC in 2017. The portion of fair value of intangible assets attributable to the Business upon acquisition was $75.8 million.

These distribution rights are governed by an agreement with an initial term of twenty years, after which it will continue to remain in effect unless otherwise terminated by either party, and there are no future costs of renewal. As such, these rights were determined to be indefinite-lived intangible assets, and are included in the carrying value of indefinite-lived bottlers’ franchise rights in Note 6.

Inventories consist primarily of raw materials (which include concentrates, ingredients and supplies), finished goods (which include finished beverages inclusive of costs to produce such as materials, direct labor, inbound freight, and related manufacturing overhead) and spare production and vending parts. Inventories are valued at the lower of cost or market. We determine cost on the basis of the average cost or first-in, first-out methods. Inventories consisted of the following:

Year ended December 31,	2016		2015
Raw materials	$	14,662	$	14,653
Finished goods		31,066		31,126
Spare production parts		7,999		5,406
Vending and other spare parts		2,759		3,042
TOTAL INVENTORIES	$	56,486	$	54,227

Year ended December 31,	2016			2015
Land	$	19,914		$	19,914
Buildings and improvements		121,553			113,612
Machinery, equipment and vehicle fleet		398,230			387,932
Total		539,697			521,458
Less accumulated depreciation		(240,952	)		(241,727	)
Total net book value		298,745			279,731
Construction in progress		6,050			26,889
PROPERTY, PLANT AND EQUIPMENT, NET	$	304,795		$	306,620

Total depreciation expense for property, plant & equipment was $39,057 and $37,915 for the years ended December 31, 2016 and 2015, respectively.

The carrying value of indefinite-lived bottlers’ franchise rights was $435,812 as of December 31, 2016 and 2015.

The following table summarizes information related to definite-lived intangible assets:

	December 31, 2016						December 31, 2015
	Gross carrying amount		Accumulated amortization		Net		Gross carrying amount		Accumulated amortization		Net
Bottlers' franchise rights	$	25,638	$	23,303	$	2,335	$	25,638	$	19,792	$	5,846
Customer relationships		21,636		6,761		14,875		21,636		5,679		15,957
TOTAL DEFINITE - LIVED INTANGIBLE ASSETS	$	47,274	$	30,064	$	17,210	$	47,274	$	25,471	$	21,803

Total amortization expense for intangible assets subject to amortization was $4,593 and $4,679 for the years ended December 31, 2016 and 2015, respectively.

Based on the carrying value of definite-lived intangible assets as of December 31, 2016, the estimated amortization expense of the Business for the next five years will be as follows:

The CTM liability represents amounts owed to the Company by CCR in connection with cooperative trade marketing programs administered by the Company. Under the programs, the Company incurs costs in connection with customer marketing programs which are reimbursed by CCR. In connection with the divestiture of the Business, the Company has allocated the portion of total CCR costs attributable to the Business. Amounts are settled annually as of December 31 for the prior twelve months of CTM charges from the Company.

The Business rents vehicles, forklifts and other equipment on an as-needed basis in the normal course of business. The rentals are short term in nature with rental periods of typically less than one month. The Business also leases certain real estate assets. The following table summarizes our minimum lease payments under noncancelable operating leases, primarily related to real estate, with initial or remaining lease terms in excess of one year as of December 31, 2016:

Year Ended December 31,
2017	$	1,424
2018		1,418
2019		1,297
2020		1,083
2021		989
Thereafter		3,606
Total minimum operating lease payments	$	9,817

Total rent expense under noncancelable operating leases with initial lease terms in excess of one year was $1,247 and $656 for the years ended December 31, 2016 and 2015, respectively.

The significant customers representing 10% or more of unit case sales volume and their respective unit case volume as a percentage of the Business’s total unit case sales volume are presented below:

The Business engages in certain related party transactions in the normal course of business. The following tables summarize our related party transactions:

Year ended December 31,	2016		2015
Purchases of concentrate, syrup, sweetener and other supplies from the Company	$	348,787	$	367,657
Purchases of finished goods from Monster		158,901		86,923
Purchases of finished goods from CCBCC		8,169		3,280
Other purchases and payments		15,789		15,180
TOTAL PURCHASES AND OTHER PAYMENTS	$	531,646	$	473,040

Year ended December 31,	2016		2015
Sales of finished products to CCBCC	$	39,534	$	24,817
Reimbursements from the Company for customer marketing programs		19,055		21,485
Reimbursements from the Company for equipment services		8,162		7,535
Other sales and fee reimbursements		7,317		7,465
TOTAL SALES AND OTHER FEE REIMBURSEMENTS	$	74,068	$	61,302

Subsequent events have been evaluated through December 12, 2017, the date the combined abbreviated financial statements were issued. There were no subsequent events which have not been disclosed in these combined abbreviated financial statements.

		Page

Report of Independent Auditors		1
CCR 2017 Carve-out Transactions – Production and Distribution Combined Abbreviated Financial Statements
Combined Statements of Net Revenues and Direct Operating Expenses		2
Combined Statements of Assets Acquired and Liabilities Assumed		3
Notes to Combined Abbreviated Financial Statements		4

Year ended December 31,	2016			2015
Wal-Mart Stores, Inc.		18.9	%		18.7	%
The Kroger Co.		14.2	%		13.9	%

Year Ended December 31,
2017	$	3,399
2018		1,099
2019		1,082
2020		1,082
2021	$	1,082