RELATED PARTY TRANSACTIONS

12 Months Ended

Dec. 31, 2016

RELATED PARTY TRANSACTIONS

RELATED PARTY TRANSACTIONS

19.RELATED PARTY TRANSACTIONS

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

TCCC commissions, calculated on sales to the TCCC Affiliates for the years ended December 31, 2016, 2015 and 2014, were $28.2 million, $18.0 million and $1.0 million, respectively.

TCCC commissions, calculated on sales to the TCCC Subsidiaries, are accounted for as a reduction to revenue and are reported in net sales to the TCCC Subsidiaries.

Net sales to the TCCC Subsidiaries for the years ended December 31, 2016, 2015 and 2014 were $1,259.7 million, $1,151.7 million and $717.6 million, respectively.

The Company also purchases concentrates from TCCC which are then sold to both the TCCC Affiliates and the TCCC Subsidiaries. Concentrate purchases from TCCC were $26.2 million and $16.0 million for the years ended December 31, 2016 and 2015, respectively.

Certain TCCC Subsidiaries also contract manufacture certain of the Company’s Monster Energy® brand energy drinks as well as Mutant® Super Soda drinks. Contract manufacturing expenses were $9.6 million, $6.9 million and $6.6 million for the years ended December 31, 2016, 2015 and 2014, respectively.

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

	December 31, 2016		December 31, 2015
Accounts receivable, net	$	151,756	$	172,201
Accounts payable	$	(41,210)	$	(58,579)
Accrued promotional allowances	$	(27,056)	$	(27,544)

Two directors and officers of the Company and their families are principal owners of a company that provides promotional materials to the Company. Expenses incurred with such company in connection with promotional materials purchased during the years ended December 31, 2016, 2015 and 2014 were $1.5 million, $1.9 million and $0.6 million, respectively.