SEGMENT INFORMATION

12 Months Ended

Dec. 31, 2012

SEGMENT INFORMATION

SEGMENT INFORMATION

16. SEGMENT INFORMATION

The Company has two reportable segments, namely Direct Store Delivery (“DSD”), whose principal products comprise energy drinks, and Warehouse (“Warehouse”), whose principal products comprise juice based and soda beverages. The DSD segment develops, markets and sells products primarily through an exclusive distributor network, whereas the Warehouse segment develops, markets and sells products primarily direct to retailers. Corporate and unallocated amounts that do not relate to DSD or Warehouse segments specifically have been allocated to “Corporate & Unallocated.”

The net revenues derived from DSD and Warehouse segments and other financial information related thereto for the years ended December 31, 2012, 2011 and 2010 are as follows:

	Year Ended December 31, 2012
	DSD		Warehouse		Corporate and Unallocated		Total
Net sales	$	1,966,481	$	94,221	$	-	$	2,060,702
Contribution margin	660,607		3,496		-		664,103
Corporate & unallocated expenses	-		-		(113,480)		(113,480)
Operating income							550,623
Interest and other income, net	494		(2)		(1,961)		(1,469)
Income before provision for income taxes							549,154
Depreciation & amortization	(15,660)		(139)		(4,714)		(20,513)
Trademark amortization	-		(44)		(5)		(49)
	Year Ended December 31, 2011
	DSD		Warehouse		Corporate and Unallocated		Total
Net sales	$	1,608,326	$	94,904	$	-	$	1,703,230
Contribution margin	543,210		4,291		-		547,501
Corporate & unallocated expenses	-		-		(91,078)		(91,078)
Operating income							456,423
Interest and other income, net	(12)		(1)		860		847
Income before provision for income taxes							457,270
Depreciation & amortization	(12,684)		(87)		(4,261)		(17,032)
Trademark amortization	-		(44)		(8)		(52)
	Year Ended December 31, 2010
	DSD		Warehouse		Corporate and Unallocated		Total
Net sales	$	1,212,645	$	91,297	$	-	$	1,303,942
Contribution margin	436,742		(777)		-		435,965
Corporate & unallocated expenses	-		-		(88,151)		(88,151)
Operating income							347,814
Interest and other income, net	(51)		-		1,539		1,488
Income before provision for income taxes							349,302
Depreciation & amortization	(6,933)		(55)		(4,740)		(11,728)
Trademark amortization	-		(42)		(6)		(48)

Revenue is derived from sales to external customers.  Operating expenses that pertain to each segment are allocated to the appropriate segment.

Corporate and unallocated expenses were $113.5 million for year ended December 31, 2012 and included $73.0 million of payroll costs, of which $28.4 million was attributable to stock-based compensation expense (see Note 12, “Stock-Based Compensation”), and $19.7 million was attributable to professional service expenses, including accounting and legal costs, $4.4 million of depreciation and $16.4 million of other operating expenses. Corporate and unallocated expenses were $91.1 million for year ended December 31, 2011 and included $55.8 million of payroll costs, of which $19.4 million was attributable to stock-based compensation expense (see Note 12, “Stock-Based Compensation”), and $17.8 million was attributable to professional service expenses, including accounting and legal costs, $4.1 million of depreciation and $13.4 million of other operating expenses. Corporate and unallocated expenses were $88.2 million for year ended December 31, 2010 and included $51.2 million of payroll costs, of which $16.9 million was attributable to stock-based compensation expense (see Note 12, “Stock-Based Compensation”), and $20.7 million was attributable to professional service expenses, including accounting and legal costs, $4.7 million of depreciation, $1.7 million of bad debt expense and $10.0 million of other operating expenses.

CCR, a customer of the DSD segment, accounted for 28% and 29% of the Company’s net sales for the years ended December 31, 2012 and 2011, respectively. CCE, which included their operations in the U.S. for the relevant periods (see Note 1), a customer of the DSD segment, accounted for approximately 28% of the Company’s net sales for the year ended December 31, 2010.

Net sales to customers outside the United States amounted to $415.8 million, $300.9 million and $191.3 million for the years ended December 31, 2012, 2011 and 2010, respectively.  Such sales were approximately 20.2%, 17.7% and 14.7% of net sales for the years ended December 31, 2012, 2011 and 2010, respectively.

The Company’s net sales by product line for years ended December 31, 2012, 2011 and 2010, respectively, were as follows:

Product Line	2012		2011		2010
Energy drinks	$	1,906,236	$	1,563,331	$	1,178,071
Non-carbonated (primarily juice based beverages)	110,217		94,398		80,537
Carbonated (primarily soda beverages)	31,044		32,467		32,906
Other	13,205		13,034		12,428
	$	2,060,702	$	1,703,230	$	1,303,942