Document and Entity Information
Document and Entity Information - shares | 3 Months Ended | |
Mar. 31, 2021 | Apr. 27, 2021 | |
Cover [Abstract] | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Transition Report | false | |
Document Period End Date | Mar. 31, 2021 | |
Entity File Number | 001-33829 | |
Entity Incorporation, State or Country Code | DE | |
Entity Tax Identification Number | 98-0517725 | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Large Accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Title of 12(b) Security | Common stock | |
Security Exchange Name | NASDAQ | |
Trading Symbol | KDP | |
Entity Common Stock, Shares Outstanding | 1,417,389,722 | |
Current Fiscal Year End Date | --12-31 | |
Amendment Flag | false | |
Document Fiscal Year Focus | 2021 | |
Document Fiscal Period Focus | Q1 | |
Entity Central Index Key | 0001418135 | |
Entity Registrant Name | Keurig Dr Pepper Inc. | |
Entity Address, Address Line One | 53 South Avenue | |
Entity Address, City or Town | Burlington | |
Entity Address, State or Province | MA | |
Entity Address, Postal Zip Code | 01803 | |
City Area Code | (781) | |
Local Phone Number | 418-7000 |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Income - USD ($) shares in Millions | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Income Statement [Abstract] | ||
Net sales | $ 2,902,000,000 | $ 2,613,000,000 |
Cost of sales | 1,302,000,000 | 1,161,000,000 |
Gross profit | 1,600,000,000 | 1,452,000,000 |
Selling, general and administrative expenses | 961,000,000 | 1,028,000,000 |
Other operating income, net | (1,000,000) | (42,000,000) |
Income from operations | 640,000,000 | 466,000,000 |
Interest expense | 140,000,000 | 153,000,000 |
Loss on early extinguishment of debt | 105,000,000 | 2,000,000 |
Impairment of investments and note receivable | 0 | 86,000,000 |
Other (income) expense, net | (3,000,000) | 20,000,000 |
Income before provision for income taxes | 398,000,000 | 205,000,000 |
Provision for income taxes | 73,000,000 | 49,000,000 |
Net income | 325,000,000 | 156,000,000 |
Less: Net income attributable to non-controlling interest | 0 | 0 |
Net income attributable to KDP | $ 325,000,000 | $ 156,000,000 |
Earnings per common share: | ||
Basic (in dollars per share) | $ 0.23 | $ 0.11 |
Diluted (in dollars per share) | $ 0.23 | $ 0.11 |
Weighted average common shares outstanding: | ||
Basic (in shares) | 1,409.2 | 1,407 |
Diluted (in shares) | 1,425.6 | 1,420.1 |
Condensed Consolidated Statem_2
Condensed Consolidated Statements of Comprehensive Income - USD ($) | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Statement of Comprehensive Income [Abstract] | ||
Net Income (Loss), Including Portion Attributable to Noncontrolling Interest | $ 325,000,000 | $ 156,000,000 |
Other Comprehensive Income (Loss), Foreign Currency Transaction and Translation Adjustment, Net of Tax | 16,000,000 | (583,000,000) |
Other Comprehensive (Income) Loss, Defined Benefit Plan, after Reclassification Adjustment, after Tax | 0 | 1,000,000 |
Other Comprehensive Income (Loss), Cash Flow Hedge, Gain (Loss), after Reclassification and Tax | 71,000,000 | 0 |
Other Comprehensive Income (Loss), Net of Tax | 87,000,000 | (584,000,000) |
Comprehensive Income (Loss), Net of Tax, Including Portion Attributable to Noncontrolling Interest | 412,000,000 | (428,000,000) |
Comprehensive Income (Loss), Net of Tax, Attributable to Noncontrolling Interest | 0 | 0 |
Comprehensive income (loss) attributable to KDP | $ 412,000,000 | $ (428,000,000) |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets - USD ($) | Mar. 31, 2021 | Dec. 31, 2020 | |
Current assets: | |||
Cash and cash equivalents | $ 335,000,000 | $ 240,000,000 | |
Restricted cash and restricted cash equivalents | [1] | 14,000,000 | 15,000,000 |
Trade accounts receivable, net | 1,065,000,000 | 1,048,000,000 | |
Inventories | 841,000,000 | 762,000,000 | |
Prepaid expenses and other current assets | 410,000,000 | 323,000,000 | |
Total current assets | 2,665,000,000 | 2,388,000,000 | |
Property, plant and equipment, net | 2,261,000,000 | 2,212,000,000 | |
Investments in unconsolidated affiliates | 88,000,000 | 88,000,000 | |
Goodwill | 20,209,000,000 | 20,184,000,000 | |
Other intangible assets, net | 23,949,000,000 | 23,968,000,000 | |
Other non-current assets | 1,187,000,000 | 894,000,000 | |
Deferred tax assets | 44,000,000 | 45,000,000 | |
Total assets | 50,403,000,000 | 49,779,000,000 | |
Current liabilities: | |||
Accounts payable | 3,871,000,000 | 3,740,000,000 | |
Accrued expenses | 989,000,000 | 1,040,000,000 | |
Structured payables | 148,000,000 | 153,000,000 | |
Short-term borrowings and current portion of long-term obligations | 1,750,000,000 | 2,345,000,000 | |
Other current liabilities | 467,000,000 | 416,000,000 | |
Total current liabilities | 7,225,000,000 | 7,694,000,000 | |
Long-term obligations | 11,715,000,000 | 11,143,000,000 | |
Deferred tax liabilities | 6,025,000,000 | 5,993,000,000 | |
Other non-current liabilities | 1,367,000,000 | 1,119,000,000 | |
Total liabilities | 26,332,000,000 | 25,949,000,000 | |
Commitments and contingencies | |||
Stockholders' equity: | |||
Preferred stock, $0.01 par value, 15,000,000 shares authorized, no shares issued | 0 | 0 | |
Common Stock, Value, Issued | 14,000,000 | 14,000,000 | |
Additional paid-in capital | 21,718,000,000 | 21,677,000,000 | |
Retained earnings | 2,174,000,000 | 2,061,000,000 | |
Accumulated other comprehensive income | 164,000,000 | 77,000,000 | |
Total stockholders' equity | 24,070,000,000 | 23,829,000,000 | |
Non-controlling interest | 1,000,000 | 1,000,000 | |
Total equity | 24,071,000,000 | 23,830,000,000 | |
Total liabilities and equity | $ 50,403,000,000 | $ 49,779,000,000 | |
[1] | Restricted cash and cash equivalents primarily represent amounts held in escrow in connection with the acquisitions of Bai Brands LLC, Core Nutrition LLC and Big Red Group Holdings, LLC, which have a corresponding holdback liability recorded in other current liabilities, as shown below. ALLOWANCE FOR EXPECTED CREDIT LOSSES Activity in the allowance for expected credit losses account during the periods presented was as follows: (in millions) Allowance for Expected Credit Losses Balance as of December 31, 2020 $ 21 Charges to bad debt expense 1 Write-offs and adjustments — Balance as of March 31, 2021 $ 22 |
Condensed Consolidated Balanc_2
Condensed Consolidated Balance Sheets (Parenthetical) - $ / shares | Mar. 31, 2021 | Dec. 31, 2020 |
Stockholders' equity: | ||
Preferred stock, par value (in dollars per share) | $ 0.01 | |
Preferred stock authorized (in shares) | 15,000,000 | |
Preferred stock issued (in shares) | 0 | |
Common stock, par value (in dollars per share) | $ 0.01 | |
Common stock authorized (in shares) | 2,000,000,000 | |
Common stock issued (in shares) | 1,417,325,379 | 1,407,260,676 |
Common stock outstanding (in shares) | 1,417,325,379 | 1,407,260,676 |
Condensed Consolidated Statem_3
Condensed Consolidated Statements of Cash Flows - USD ($) | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Operating activities: | ||
Net Income (Loss), Including Portion Attributable to Noncontrolling Interest | $ 325,000,000 | $ 156,000,000 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Depreciation expense | 102,000,000 | 98,000,000 |
Amortization of intangibles | 33,000,000 | 33,000,000 |
Other amortization expense | 40,000,000 | 32,000,000 |
Provision for sales returns | 19,000,000 | 7,000,000 |
Deferred income taxes | 11,000,000 | (5,000,000) |
Employee stock-based compensation expense | 25,000,000 | 19,000,000 |
Loss on early extinguishment of debt | 105,000,000 | 2,000,000 |
Gain (Loss) on Disposition of Property Plant Equipment | (1,000,000) | (43,000,000) |
Unrealized (gain) loss on foreign currency | 10,000,000 | (22,000,000) |
Unrealized (gain) loss on derivatives | (41,000,000) | 43,000,000 |
Equity in loss of unconsolidated affiliates | 0 | (15,000,000) |
Impairment of investments and note receivable | 0 | 86,000,000 |
Other, net | 15,000,000 | 22,000,000 |
Changes in assets and liabilities: | ||
Trade accounts receivable | (37,000,000) | 42,000,000 |
Inventories | (77,000,000) | (38,000,000) |
Income taxes receivable and payables, net | 25,000,000 | (29,000,000) |
Other current and non-current assets | (295,000,000) | (179,000,000) |
Accounts payable and accrued expenses | 121,000,000 | 150,000,000 |
Other current and non-current liabilities | 186,000,000 | (19,000,000) |
Net change in operating assets and liabilities | (77,000,000) | (73,000,000) |
Net cash provided by operating activities | 546,000,000 | 414,000,000 |
Investing activities: | ||
Issuance of related party note receivable | 0 | (6,000,000) |
Purchases of property, plant and equipment | (95,000,000) | (151,000,000) |
Proceeds from sales of property, plant and equipment | 7,000,000 | 201,000,000 |
Purchase of intangibles | (12,000,000) | (15,000,000) |
Other, net | 1,000,000 | 5,000,000 |
Net cash (used in) provided by investing activities | (99,000,000) | 34,000,000 |
Financing activities: | ||
Proceeds from issuance of common stock | 140,000,000 | 0 |
Proceeds from unsecured credit facility | 0 | 1,000,000,000 |
Proceeds from senior unsecured notes | 2,150,000,000 | 0 |
Net (payment) issuance of commercial paper | 0 | (387,000,000) |
Proceeds from structured payables | 35,000,000 | 44,000,000 |
Payments on structured payables | (41,000,000) | (107,000,000) |
Payments on Notes | (1,845,000,000) | (250,000,000) |
Payments on term loan | (425,000,000) | (405,000,000) |
Payments on finance leases | (15,000,000) | (13,000,000) |
Cash dividends paid | (192,000,000) | (212,000,000) |
Payment, Tax Withholding, Share-based Payment Arrangement | (125,000,000) | 0 |
Other, net | (37,000,000) | 2,000,000 |
Net cash used in financing activities | (355,000,000) | (328,000,000) |
Cash, cash equivalents, restricted cash and restricted cash equivalents — net change from: | ||
Operating, investing and financing activities | 92,000,000 | 120,000,000 |
Effect of exchange rate changes on cash, cash equivalents, restricted cash and restricted cash equivalents | 2,000,000 | (8,000,000) |
Cash, cash equivalents, restricted cash and restricted cash equivalents at beginning of period | 255,000,000 | 111,000,000 |
Cash, cash equivalents, restricted cash and restricted cash equivalents at end of period | 349,000,000 | 223,000,000 |
Supplemental Cash Flow Information [Abstract] | ||
Capital expenditures included in accounts payable and accrued expenses | 259,000,000 | 177,000,000 |
Dividends declared but not yet paid | 232,000,000 | 212,000,000 |
Finance lease additions | 88,000,000 | 10,000,000 |
Cash paid for interest | 29,000,000 | 0 |
Cash paid for income taxes | $ 31,000,000 | $ 81,000,000 |
Condensed Consolidated Statem_4
Condensed Consolidated Statements of Changes in Stockholders' Equity - USD ($) | Total | Common Stock Issued | Additional Paid-In Capital | Retained Earnings | Accumulated Other Comprehensive Income (Loss) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Non-controlling interest | $ 0 | ||||
Shares issued at beginning of period (in shares) at Dec. 31, 2019 | 1,406,800,000 | ||||
Total stockholders' equity at beginning of period at Dec. 31, 2019 | 23,257,000,000 | $ 14,000,000 | $ 21,557,000,000 | $ 1,582,000,000 | $ 104,000,000 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Net income | 156,000,000 | 156,000,000 | |||
Net Income (Loss) Attributable to Noncontrolling Interest | 0 | ||||
Net Income (Loss), Including Portion Attributable to Noncontrolling Interest | 156,000,000 | ||||
Other comprehensive income | (584,000,000) | (584,000,000) | |||
Shares issued under employee stock-based compensation plans and other | 300,000 | ||||
Dividends declared, $0.15 per share | (211,000,000) | (211,000,000) | |||
Stock-based compensation and stock options exercised | 22,000,000 | 22,000,000 | |||
Shares issued at end of period (in shares) at Mar. 31, 2020 | 1,407,100,000 | ||||
Total stockholders' equity at end of period at Mar. 31, 2020 | 22,640,000,000 | $ 14,000,000 | 21,579,000,000 | 1,527,000,000 | (480,000,000) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Non-controlling interest | 0 | ||||
Non-controlling interest | 1,000,000 | ||||
Shares issued at beginning of period (in shares) at Dec. 31, 2020 | 1,407,300,000 | ||||
Total stockholders' equity at beginning of period at Dec. 31, 2020 | 23,829,000,000 | $ 14,000,000 | 21,677,000,000 | 2,061,000,000 | 77,000,000 |
Total equity, beginning of period at Dec. 31, 2020 | 23,830,000,000 | ||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Net income | 325,000,000 | 325,000,000 | |||
Net Income (Loss) Attributable to Noncontrolling Interest | 0 | ||||
Net Income (Loss), Including Portion Attributable to Noncontrolling Interest | 325,000,000 | ||||
Other comprehensive income | 87,000,000 | 87,000,000 | |||
Shares issued under employee stock-based compensation plans and other | 5,700,000 | ||||
Dividends declared, $0.15 per share | (212,000,000) | (212,000,000) | |||
Stock Issued During Period, Value, New Issues | 140,000,000 | 140,000,000 | |||
Stock Issued During Period, Shares, New Issues | 4,300,000 | ||||
Stock-based compensation and stock options exercised | (99,000,000) | (99,000,000) | |||
Shares issued at end of period (in shares) at Mar. 31, 2021 | 1,417,300,000 | ||||
Total stockholders' equity at end of period at Mar. 31, 2021 | 24,070,000,000 | $ 14,000,000 | $ 21,718,000,000 | $ 2,174,000,000 | $ 164,000,000 |
Total equity, end of period at Mar. 31, 2021 | 24,071,000,000 | ||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Non-controlling interest | $ 1,000,000 |
Condensed Consolidated Statem_5
Condensed Consolidated Statements of Changes in Stockholders' Equity Condensed Consolidated Statements of Changes in Stockholders' Equity (Parentheticals) - $ / shares | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Statement of Stockholders' Equity [Abstract] | ||
Common Stock, Dividends, Per Share, Declared | $ 0.15 | $ 0.15 |
Condensed Consolidated Statem_6
Condensed Consolidated Statements of Comprehensive Income (Parentheticals) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Statement of Comprehensive Income [Abstract] | ||
Other Comprehensive (Income) Loss, Defined Benefit Plan, after Reclassification Adjustment, Tax | $ 0 | $ 0 |
Other Comprehensive Income (Loss), Cash Flow Hedge, Gain (Loss), after Reclassification, Tax | $ 22 | $ 0 |
Background and Basis of Present
Background and Basis of Presentation | 3 Months Ended |
Mar. 31, 2021 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Background and Basis of Presentation | General ORGANIZATION References in this Quarterly Report on Form 10-Q to "KDP" or "the Company" refer to Keurig Dr Pepper Inc. and all entities included in the unaudited condensed consolidated financial statements. Definitions of terms used in this Quarterly Report on Form 10-Q are included within the Master Glossary. This Quarterly Report on Form 10-Q refers to some of KDP's owned or licensed trademarks, trade names and service marks, which are referred to as the Company's brands. All of the product names included herein are either KDP registered trademarks or those of the Company's licensors. BASIS OF PRESENTATION The accompanying unaudited condensed consolidated financial statements have been prepared in accordance with U.S. GAAP for interim financial information and in accordance with the instructions to Form 10-Q and Article 10 of Regulation S-X. Accordingly, they do not include all of the information and footnotes required by U.S. GAAP for complete consolidated financial statements. In the opinion of management, all adjustments, consisting principally of normal recurring adjustments, considered necessary for a fair presentation have been included. These unaudited condensed consolidated financial statements should be read in conjunction with KDP's consolidated financial statements and accompanying notes, included in the Company's Annual Report. Except as otherwise specified, references to the "first quarter" indicate the Company's quarterly periods ended March 31, 2021 and 2020. PRINCIPLES OF CONSOLIDATION KDP consolidates all wholly owned subsidiaries. The Company consolidates investments in companies in which it holds the majority interest. In these cases, the third party equity interest is referred to as non-controlling interest. Non-controlling interests are presented as a separate component within equity in the unaudited Condensed Consolidated Balance Sheets, and net income attributable to the non-controlling interests are presented separately in the unaudited Condensed Consolidated Statements of Income. The Company uses the equity method to account for investments in companies if the investment provides the Company with the ability to exercise significant influence over operating and financial policies of the investee. Consolidated net income includes KDP's proportionate share of the net income or loss of these companies. Judgment regarding the level of influence over each equity method investment includes considering key factors such as ownership interest, representation on the board of directors or similar governing body, participation in policy-making decisions and material intercompany transactions. KDP eliminates from its financial results all intercompany transactions between entities included in the unaudited condensed consolidated financial statements. USE OF ESTIMATES The process of preparing KDP's unaudited condensed consolidated financial statements in conformity with U.S. GAAP requires the use of estimates and judgments that affect the reported amount of assets, liabilities, revenue and expenses. These estimates and judgments are based on historical experience, future expectations and other factors and assumptions the Company believes to be reasonable under the circumstances. These estimates and judgments are reviewed on an ongoing basis and are revised when necessary. Changes in estimates are recorded in the period of change. Actual amounts may differ from these estimates. RECENTLY ADOPTED PROVISIONS OF U.S. GAAP As of January 1, 2021, the Company adopted ASU 2020-01, Investments—Equity Securities (Topic 321), Investments—Equity Method and Joint Ventures (Topic 323), and Derivatives and Hedging (Topic 815): Clarifying the Interactions between Topic 321, Topic 323, and Topic 815. The objective of the new standard is to clarify the interaction of the accounting for equity securities, investments accounted for under the equity method of accounting and the accounting for certain forward contracts and purchased options accounted for under different topics in U.S. GAAP. The adoption of the standard did not impact KDP's consolidated financial statements. |
Long-term Obligations and Borro
Long-term Obligations and Borrowing Arrangements | 3 Months Ended |
Mar. 31, 2021 | |
Debt Disclosure [Abstract] | |
Long-term Obligations and Borrowing Arrangements | Long-term Obligations and Borrowing Arrangements The following table summarizes the Company 's long-term obligations: (in millions) March 31, 2021 December 31, 2020 Notes $ 13,465 $ 13,065 Term loan — 423 Subtotal 13,465 13,488 Less - current portion (1,750) (2,345) Long-term obligations $ 11,715 $ 11,143 The following table summarizes the Company's short-term borrowings and current portion of long-term obligations: (in millions) March 31, 2021 December 31, 2020 Commercial paper notes $ — $ — Revolving credit facilities — — Current portion of long-term obligations: Notes 1,750 2,246 Term loan — 99 Short-term borrowings and current portion of long-term obligations $ 1,750 $ 2,345 SENIOR UNSECURED NOTES The Company's Notes consisted of the following: (in millions, except %) Issuance Maturity Date Rate March 31, 2021 December 31, 2020 2021 Merger Notes May 25, 2021 3.551% $ 1,750 $ 1,750 2021-A Notes November 15, 2021 3.200% — 250 2021-B Notes November 15, 2021 2.530% — 250 2022 Notes November 15, 2022 2.700% — 250 2023 Merger Notes May 25, 2023 4.057% 1,000 2,000 2023 Notes December 15, 2023 3.130% 500 500 2024 Notes (1) March 15, 2024 0.750% 1,150 — 2025 Merger Notes May 25, 2025 4.417% 1,000 1,000 2025 Notes November 15, 2025 3.400% 500 500 2026 Notes September 15, 2026 2.550% 400 400 2027 Notes June 15, 2027 3.430% 500 500 2028 Merger Notes May 25, 2028 4.597% 2,000 2,000 2030 Notes May 1, 2030 3.200% 750 750 2031 Notes March 15, 2031 2.250% 500 — 2038 Notes May 1, 2038 7.450% 125 125 2038 Merger Notes May 25, 2038 4.985% 500 500 2045 Notes November 15, 2045 4.500% 550 550 2046 Notes December 15, 2046 4.420% 400 400 2048 Merger Notes May 25, 2048 5.085% 750 750 2050 Notes May 1, 2050 3.800% 750 750 2051 Notes March 15, 2051 3.350% 500 — Principal amount $ 13,625 $ 13,225 Adjustment from principal amount to carrying amount (2) (160) (160) Carrying amount $ 13,465 $ 13,065 (1) The 2024 Notes may be called anytime on or after March 15, 2022, in whole or in part, at the Company’s option, at a redemption price equal to 100% of the principal amount being redeemed, plus accrued and unpaid interest. (2) The carrying amount includes unamortized discounts, debt issuance costs and fair value adjustments related to the DPS Merger. On March 15, 2021, the Company completed the issuance of the 2024 Notes, the 2031 Notes, and the 2051 Notes. The discount associated with these notes was approximately $3 million and the Company incurred $13 million in debt issuance costs. The net proceeds from the issuance were used to repay the Company’s 2021-A Notes, 2021-B Notes, 2022 Notes, and approximately $1 billion of the 2023 Merger Notes, as well as to repay and terminate the 2019 KDP Term Loan as described below. As a result of the repayments of senior unsecured notes, the Company recorded losses on early extinguishment of debt of $104 million during the first quarter of 2021, comprised of a make-whole premium, fair market value adjustments and deferred financing fees written off. VARIABLE-RATE BORROWING ARRANGEMENTS The KDP Credit Agreements consist of the following: (in millions) March 31, 2021 December 31, 2020 Issuance Maturity Date Available Balances Carrying Value Carrying Value 2019 KDP Term Loan $ — $ — $ 425 KDP Revolver (1) February 2023 2,400 — — 2020 364-Day Credit Agreement — — — 2021 364-Day Credit Agreement March 2022 1,500 — — Principal amount $ — $ 425 Unamortized discounts and debt issuance costs — (2) Carrying amount $ — $ 423 (1) The KDP Revolver has $200 million letters of credit availability and none utilized as of March 31, 2021. As of March 31, 2021, the Company was in compliance with all financial covenant requirements relating to the KDP Credit Agreements . 2019 KDP Term Loan During the first quarter of 2021, the Company voluntarily prepaid and terminated the 2019 KDP Term Loan using proceeds from the aforementioned issuance of senior subordinated notes. As a result of this voluntary prepayment, the Company recorded $1 million of losses on early extinguishment of debt related to the 2019 KDP Term Loan during the first quarter of 2021. 364-Day Credit Agreements During the first quarter of 2021, the Company terminated its 2020 364-Day Credit Agreement, which was originally available through April 2021. No amounts were drawn under the 2020 364-Day Credit Agreement prior to termination. The Company then entered into the 2021 364-Day Credit Agreement on March 24, 2021 among KDP, the banks party thereto and Bank of America, N.A. as administrative agent, pursuant to which the Company obtained a $1,500 million commitment. The interest rate applicable to borrowings under the 2021 364-Day Credit Agreement ranges from a rate equal to LIBOR plus a margin of 1.000% to 1.625% or a base rate plus a margin of 0.000% to 0.625%, depending on the rating of certain index debt of the Company. The 2021 364-Day Credit Agreement matures on March 23, 2022, and includes a term-out option which allows KDP to extend any outstanding amounts borrowed under the agreement for one year for a fee of 0.750% on the amounts borrowed. Commercial Paper Program The following table provides information about the Company 's borrowings under its commercial paper program: First Quarter (in millions, except %) 2021 2020 Weighted average commercial paper borrowings $ 22 $ 1,670 Weighted average borrowing rates 0.18 % 1.85 % Letter of Credit Facility In addition to the portion of the KDP Revolver reserved for issuance of letters of credit, the Company has an incremental letter of credit facility. Under this facility, $100 million is available for the issuance of letters of credit, $44 million of which was utilized as of March 31, 2021 and $56 million of which remains available for use. FAIR VALUE DISCLOSURES The fair values of the Company's commercial paper approximate the carrying value and are considered Level 2 within the fair value hierarchy. |
Goodwill and Other Intangible A
Goodwill and Other Intangible Assets | 3 Months Ended |
Mar. 31, 2021 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill and Other Intangible Assets | Goodwill and Other Intangible Assets GOODWILL Changes in the carrying amount of goodwill by reportable segment are as follows: (in millions) Coffee Systems Packaged Beverages Beverage Concentrates Latin America Beverages Total Balance as of January 1, 2021 $ 9,795 $ 5,314 $ 4,536 $ 539 $ 20,184 Foreign currency translation 27 9 6 (17) 25 Balance as of March 31, 2021 $ 9,822 $ 5,323 $ 4,542 $ 522 $ 20,209 INTANGIBLE ASSETS OTHER THAN GOODWILL The net carrying amounts of intangible assets other than goodwill with indefinite lives are as follows: (in millions) March 31, 2021 December 31, 2020 Brands (1) $ 19,876 $ 19,874 Trade names 2,480 2,480 Contractual arrangements 123 123 Distribution rights 66 57 Total $ 22,545 $ 22,534 (1) The increase of $2 million in brands with indefinite lives was due to foreign currency translation during the first quarter of 2021. The net carrying amounts of intangible assets other than goodwill with definite lives are as follows: March 31, 2021 December 31, 2020 (in millions) Gross Amount Accumulated Amortization Net Amount Gross Amount Accumulated Amortization Net Amount Acquired technology $ 1,146 $ (346) $ 800 $ 1,146 $ (328) $ 818 Customer relationships 638 (143) 495 638 (135) 503 Trade names 128 (74) 54 127 (69) 58 Contractual arrangements 24 (6) 18 24 (5) 19 Brands 21 (6) 15 21 (5) 16 Distribution rights 29 (7) 22 26 (6) 20 Total $ 1,986 $ (582) $ 1,404 $ 1,982 $ (548) $ 1,434 Amortization expense for intangible assets with definite lives was as follows: First Quarter (in millions) 2021 2020 Amortization expense $ 33 $ 33 Amortization expense of these intangible assets over the remainder of 2021 and the next five years is expected to be as follows: Remainder of 2021 For the Years Ending December 31, (in millions) 2022 2023 2024 2025 2026 Expected amortization expense $ 101 $ 134 $ 132 $ 124 $ 110 $ 105 |
Restructuring and Integration C
Restructuring and Integration Costs | 3 Months Ended |
Mar. 31, 2021 | |
Restructuring and Related Activities [Abstract] | |
Restructuring and Integration Costs | Restructuring and Integration Costs The Company implements restructuring programs from time to time and incurs costs that are designed to improve operating effectiveness and lower costs. When the Company implements these programs, the Company incurs expenses, such as employee separations, lease terminations and other direct exit costs, that qualify as exit and disposal costs under U.S. GAAP. The Company also incurs expenses that are an integral component of, and directly attributable to, its restructuring activities, which do not qualify as exit and disposal costs, such as accelerated depreciation, asset impairments, implementation costs and other incremental costs. These costs are recorded within SG&A expenses on the income statement and are held primarily within unallocated corporate costs. DPS INTEGRATION PROGRAM As part of the DPS Merger, the Company developed a program to deliver $600 million in synergies over a three-year period through supply chain optimization, reduction of indirect spend through new economies of scale, elimination of duplicative support functions and advertising and promotion optimization. The Company expects to incur total cash expenditures of $750 million, comprised of both capital expenditures and expense, and expects to complete the program in 2021. The restructuring and integration program resulted in cumulative pre-tax charges of approximately $630 million, primarily consisting of professional fees related to the integration and transformation and costs associated with severance and employee terminations, through March 31, 2021. Restructuring and integration charges on the DPS Integration Program were $43 million and $53 million for the first quarter of 2021 and 2020, respectively. Restructuring liabilities that qualify as exit and disposal costs under U.S. GAAP are included in accounts payable and accrued expenses on the unaudited condensed consolidated financial statements. Restructuring liabilities for the DPS Integration Program, all of which were workforce reduction costs, were as follows for the period presented: (in millions) Restructuring Liabilities Balance as of January 1, 2021 $ 14 Charges to expense 13 Cash payments (9) Balance as of March 31, 2021 $ 18 |
Derivatives
Derivatives | 3 Months Ended |
Mar. 31, 2021 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Derivatives | Derivatives KDP is exposed to market risks arising from adverse changes in interest rates, commodity prices, and FX rates. KDP manages these risks through a variety of strategies, including the use of interest rate contracts, FX forward contracts, commodity forward, future, swap and option contracts and supplier pricing agreements. KDP does not hold or issue derivative financial instruments for trading or speculative purposes. KDP formally designates and accounts for certain foreign exchange forward contracts that meet established accounting criteria under U.S. GAAP as cash flow hedges. For such contracts, the effective portion of the gain or loss on the derivative instruments is recorded, net of applicable taxes, in AOCI. When net income is affected by the variability of the underlying transaction, the applicable offsetting amount of the gain or loss from the derivative instrument deferred in AOCI is reclassified to net income. Cash flows from derivative instruments designated in a qualifying hedging relationship are classified in the same category as the cash flows from the hedged items. If a cash flow hedge were to cease to qualify for hedge accounting, or were terminated, the derivatives would continue to be carried on the balance sheet at fair value until settled and hedge accounting would be discontinued prospectively. If the underlying hedged transaction ceases to exist, any associated amounts reported in AOCI would be reclassified to earnings at that time. For derivatives that are not designated or for which the designated hedging relationship is discontinued, the gain or loss on the instrument is recognized in earnings in the period of change. The Company has exposure to credit losses from derivative instruments in an asset position in the event of nonperformance by the counterparties to the agreements. Historically, the Company has not experienced material credit losses as a result of counterparty nonperformance. The Company selects and periodically reviews counterparties based on credit ratings, limits its exposure to a single counterparty under defined guidelines and monitors the market position of the programs upon execution of a hedging transaction and at least on a quarterly basis. INTEREST RATES Economic Hedges KDP is exposed to interest rate risk related to its borrowing arrangements and obligations. The Company enters into interest rate swaps to provide predictability in the Company 's overall cost structure, including both receive-fixed, pay-variable and receive-variable, pay-fixed swaps. A natural hedging relationship exists in which changes in the fair value of the instruments act as an economic offset to changes in the fair value of the underlying items. Changes in the fair value of these instruments are recorded in earnings throughout the term of the derivative instrument and are reported in interest expense in the unaudited Condensed Consolidated Statements of Income. As of March 31, 2021, all economic interest rate swap contracts will mature in March 2025. Cash Flow Hedges In order to hedge the variability in cash flows from interest rate changes associated with the Company’s planned future issuances of long-term debt, during the first quarter of 2021, the Company entered into forward starting swaps and designated them as cash flow hedges. The forward starting swaps are planned to be unwound at the issuance of long-term debt. As of March 31, 2021, the forward starting swaps have mandatory termination dates ranging from June 2022 to May 2025. FOREIGN EXCHANGE KDP is exposed to foreign exchange risk in its international subsidiaries, which may transact in currencies that are different from the functional currencies of those subsidiaries. The balance sheets of each of these businesses are also subject to exposure from movements in exchange rates. Economic Hedges During the first quarter of 2021 and 2020, KDP held FX forward contracts to economically manage the balance sheet exposures resulting from changes in the FX exchange rates described above. The intent of these FX contracts is to minimize the impact of FX risk associated with balance sheet positions not in local currency. In these cases, a hedging relationship exists in which changes in the fair value of the instruments act as an economic offset to changes in the fair value of the underlying items. Changes in the fair value of these instruments are recorded in earnings throughout the term of the derivative instrument and are reported in the same caption of the unaudited Condensed Consolidated Statements of Income as the associated risk. These FX contracts have maturities ranging from April 2021 to September 2024 as of March 31, 2021. Cash Flow Hedges During 2020, KDP began to designate certain FX forward contracts related to inventory purchases of the Canadian and Mexican businesses as cash flow hedges in order to manage the exposures resulting from changes in the FX rates described above. The intent of these FX contracts is to provide predictability in the Company's overall cost structure. These FX contracts, carried at fair value, have maturities ranging from April 2021 to November 2022 as of March 31, 2021. COMMODITIES Economic Hedges KDP centrally manages the exposure to volatility in the prices of certain commodities used in its production process and transportation through various derivative contracts. The intent of these contracts is to provide a certain level of predictability in the Company's overall cost structure. During the first quarter of 2021 and 2020, the Company held forward, future, swap and option contracts that economically hedged certain of its risks. In these cases, a hedging relationship exists in which changes in the fair value of the instruments act as an economic offset to changes in the fair value of the underlying items. Changes in the fair value of these instruments are recorded in earnings throughout the term of the derivative instrument and are reported in the same line item of the unaudited Condensed Consolidated Statements of Income as the hedged transaction. Unrealized gains and losses are recognized as a component of unallocated corporate costs until the Company's operating segments are affected by the completion of the underlying transaction, at which time the gain or loss is reflected as a component of the respective segment's income from operations. These commodity contracts have maturities ranging from April 2021 to January 2024 as of March 31, 2021. NOTIONAL AMOUNTS OF DERIVATIVE INSTRUMENTS The following table presents the notional amounts of KDP's outstanding derivative instruments by type: (in millions) March 31, 2021 December 31, 2020 Interest rate contracts Forward starting swaps, designated as cash flow hedges $ 2,500 $ — Receive-variable, pay-fixed interest rate swaps, not designated as hedging instruments 450 450 FX contracts Forward contracts, not designated as hedging instruments 505 476 Forward contracts, designated as cash flow hedges 369 333 Commodity contracts 450 450 FAIR VALUE OF DERIVATIVE INSTRUMENTS The fair values of commodity contracts, interest rate contracts and FX forward contracts are determined based on inputs that are readily available in public markets or can be derived from information available in publicly quoted markets. The fair value of commodity contracts are valued using the market approach based on observable market transactions, primarily underlying commodities futures or physical index prices, at the reporting date. Interest rate contracts are valued using models based primarily on readily observable market parameters, such as LIBOR forward rates, for all substantial terms of the Company's contracts and credit risk of the counterparties. The fair value of FX forward contracts are valued using quoted forward FX prices at the reporting date. Therefore, the Company has categorized these contracts as Level 2. Not Designated as Hedging Instruments The following table summarizes the location of the fair value of the Company's derivative instruments which are not designated as hedging instruments within the unaudited Condensed Consolidated Balance Sheets. All such instruments are designated level 2 within the fair value hierarchy. (in millions) Balance Sheet Location March 31, 2021 December 31, 2020 Assets: Commodity contracts Prepaid expenses and other current assets $ 65 $ 45 Interest rate contracts Other non-current assets 2 — Commodity contracts Other non-current assets 25 12 Liabilities: Interest rate contracts Other current liabilities $ 2 $ 2 FX contracts Other current liabilities 7 6 Commodity contracts Other current liabilities 1 5 Interest rate contracts Other non-current liabilities — 7 FX contracts Other non-current liabilities 14 9 Commodity contracts Other non-current liabilities 2 2 Designated as Hedging Instruments The following table summarizes the location of the fair value of the Company's derivative instruments which are designated as hedging instruments within the unaudited Condensed Consolidated Balance Sheets. All such instruments are designated level 2 within the fair value hierarchy. (in millions) Balance Sheet Location March 31, 2021 December 31, 2020 Assets: Interest rate contracts Other non-current assets $ 92 $ — Liabilities: FX contracts Other current liabilities $ 13 $ 12 IMPACT OF DERIVATIVE INSTRUMENTS NOT DESIGNATED AS HEDGING INSTRUMENTS The following table presents the amount of (gains) losses recognized in the unaudited Condensed Consolidated Statements of Income related to derivative instruments not designated as hedging instruments under U.S. GAAP during the periods presented. Amounts include both realized and unrealized gains and losses. First Quarter (in millions) Income Statement Location 2021 2020 Interest rate contracts Interest expense $ (8) $ 4 FX contracts Cost of sales 4 (23) FX contracts Other (income) expense, net 5 (17) Commodity contracts Cost of sales (17) 17 Commodity contracts SG&A expenses (29) 45 Total $ (45) $ 26 IMPACT OF CASH FLOW HEDGES The following table presents the amount of loss reclassified from AOCI into the unaudited Condensed Consolidated Statements of Income related to derivative instruments designated as cash flow hedging instruments during the periods presented: First Quarter (in millions) Income Statement Location 2021 2020 Interest rate contracts Interest expense $ — $ — FX contracts Cost of sales 5 — KDP expects to reclassify approximately $15 million of pre-tax net losses from AOCI into net income during the next twelve months related to its FX contracts. KDP does not expect to reclassify any amounts from AOCI into net income during the next twelve months related to its interest rate contracts. |
Leases (Notes)
Leases (Notes) | 3 Months Ended |
Mar. 31, 2021 | |
Leases [Abstract] | |
Leases of Lessee Disclosure [Text Block] | Leases The Company leases certain facilities and machinery and equipment, including fleet. These leases expire at various dates through 2044. Some lease agreements contain standard renewal provisions that allow the Company to renew the lease at rates equivalent to fair market value at the end of the lease term. The Company's lease agreements do not contain any material residual value guarantees or restrictive covenants, except for leases of certain manufacturing properties that contain residual value guarantees at the end of the term. KDP has lease agreements with lease and non-lease components, which are generally accounted for as a single lease component. The following table presents the components of lease cost: First Quarter (in millions) 2021 2020 Operating lease cost $ 30 $ 28 Finance lease cost Amortization of right-of-use assets 13 11 Interest on lease liabilities 3 4 Variable lease cost (1) 8 6 Short-term lease cost — — Sublease income — (1) Total lease cost $ 54 $ 48 (1) Variable lease cost primarily consists of common area maintenance costs, property taxes, and adjustments for inflation. The following table presents supplemental cash flow information about the Company's leases: First Quarter (in millions) 2021 2020 Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows from operating leases $ 28 $ 26 Operating cash flows from finance leases 3 4 Financing cash flows from finance leases 15 13 The following table presents information about the Company's weighted average discount rate and remaining lease term: March 31, 2021 December 31, 2020 Weighted average discount rate Operating leases 3.8 % 4.3 % Finance leases 4.5 % 4.4 % Weighted average remaining lease term Operating leases 13 years 12 years Finance leases 11 years 11 years Future minimum lease payments for non-cancellable leases that have commenced and are reflected on the unaudited Condensed Consolidated Balance Sheets as of March 31, 2021 were as follows: (in millions) Operating Leases Finance Leases Remainder of 2021 $ 72 $ 52 2022 99 65 2023 92 59 2024 90 56 2025 84 52 2025 73 65 Thereafter 536 153 Total future minimum lease payments 1,046 502 Less: imputed interest (206) (86) Present value of minimum lease payments $ 840 $ 416 SIGNIFICANT LEASES THAT HAVE NOT YET COMMENCED As of March 31, 2021, the Company has entered into leases that have not yet commenced with estimated aggregated future lease payments of approximately $343 million. These leases are expected to commence between the second quarter and fourth quarter of 2021, with initial lease terms ranging from 5 years to 10 years. |
Segments
Segments | 3 Months Ended |
Mar. 31, 2021 | |
Segment Reporting [Abstract] | |
Segments | Segments Effective January 1, 2021, the Company modified its internal reporting and operating segments to reflect changes in the executive leadership team to further enhance speed-to-market and decision effectiveness. These modifications did not change the Company’s reportable segments. The Company's reportable segments consist of the following: • The Coffee Systems segment reflects sales in the U.S. and Canada of the manufacture and distribution of finished goods relating to the Company's coffee system, K-Cup pods and brewers. • The Packaged Beverages segment reflects sales in the U.S. and Canada from the manufacture and distribution of finished beverages and other products, including sales of the Company's own brands and third-party brands, through both the DSD and WD systems. DSD and WD have both been identified as operating segments that the Company aggregated into Packaged Beverages due to similar economic characteristics and similarities in the nature of finished goods sales and route-to-markets. • The Beverage Concentrates segment reflects sales of the Company's branded concentrates and syrup to third-party bottlers primarily in the U.S. and Canada. Most of the brands in this segment are carbonated soft drink brands. Our FFS operating segment is aggregated with our Branded Concentrates operating segment into our Beverage Concentrates reportable segment due to similar economic characteristics and similarities in the nature of the product sold. • The Latin America Beverages segment reflects sales primarily in Mexico and the Caribbean from the manufacture and distribution of concentrates, syrup and finished beverages. Segment results are based on management reports. Net sales and income from operations are the significant financial measures used to assess the operating performance of the Company's operating segments. Intersegment sales are recorded at cost and are eliminated in the unaudited Condensed Consolidated Statements of Income. “Unallocated corporate costs” are excluded from the Company's measurement of segment performance and include unrealized commodity derivative gains and losses, and certain general corporate expenses. Information about the Company's operations by reportable segment is as follows: First Quarter (in millions) 2021 2020 Segment Results – Net sales Coffee Systems $ 1,142 $ 973 Packaged Beverages 1,307 1,217 Beverage Concentrates 328 306 Latin America Beverages 125 117 Net sales $ 2,902 $ 2,613 First Quarter (in millions) 2021 2020 Segment Results – Income from operations Coffee Systems $ 336 $ 272 Packaged Beverages 175 189 Beverage Concentrates 238 197 Latin America Beverages 22 27 Unallocated corporate costs (131) (219) Income from operations $ 640 $ 466 |
Earnings Per Share
Earnings Per Share | 3 Months Ended |
Mar. 31, 2021 | |
Earnings Per Share [Abstract] | |
Earnings Per Share | Earnings Per Share The following table presents the Company's basic and diluted EPS and shares outstanding: First Quarter (in millions, except per share data) 2021 2020 Basic EPS: Net income attributable to KDP $ 325 $ 156 Weighted average common shares outstanding 1,409.2 1,407.0 Earnings per common share — basic $ 0.23 $ 0.11 Diluted EPS: Net income attributable to KDP $ 325 $ 156 Weighted average common shares outstanding 1,409.2 1,407.0 Effect of dilutive securities: RSUs 16.0 12.7 Stock options 0.3 0.4 PSUs 0.1 — Weighted average common shares outstanding and common stock equivalents 1,425.6 1,420.1 Earnings per common share — diluted $ 0.23 $ 0.11 Anti-dilutive shares excluded from the diluted weighted average shares outstanding calculation — 0.3 |
Revenue Recognition
Revenue Recognition | 3 Months Ended |
Mar. 31, 2021 | |
Revenue from Contract with Customer [Abstract] | |
Revenue Recognition | Revenue Recognition The Company recognizes revenue when obligations under the terms of a contract with the customer are satisfied. Branded product sales, which include CSDs, NCB, K-Cup pods and appliances, occur once control is transferred upon delivery to the customer. Revenue is measured as the amount of consideration the Company expects to receive in exchange for transferring goods. The amount of consideration the Company receives and revenue the Company recognizes varies with changes in customer incentives the Company offers to its customers and their customers. Sales taxes and other similar taxes are excluded from revenue. Costs associated with shipping and handling activities, such as merchandising, are included in SG&A expenses as revenue is recognized. The following table disaggregates the Company's revenue by portfolio: (in millions) Coffee Systems Packaged Beverages Beverage Concentrates Latin America Beverages Total For the first quarter of 2021: CSD (1) $ — $ 624 $ 323 $ 87 $ 1,034 NCB (1) — 581 3 38 622 K-Cup pods (2) 903 — — — 903 Appliances 174 — — — 174 Other 65 102 2 — 169 Net sales $ 1,142 $ 1,307 $ 328 $ 125 $ 2,902 For the first quarter of 2020: CSD (1) $ — $ 563 $ 302 $ 82 $ 947 NCB (1) — 562 2 35 599 K-Cup pods (2) 791 — — — 791 Appliances 127 — — — 127 Other 55 92 2 — 149 Net sales $ 973 $ 1,217 $ 306 $ 117 $ 2,613 (1) Represents net sales of owned and partner brands within our portfolio. |
Stock Based Compensation
Stock Based Compensation | 3 Months Ended |
Mar. 31, 2021 | |
Share-based Payment Arrangement [Abstract] | |
Stock-Based Compensation | Stock-Based Compensation Stock-based compensation expense is primarily recorded in SG&A expenses in the unaudited Condensed Consolidated Statements of Income. The components of stock-based compensation expense are presented below: First Quarter (in millions) 2021 2020 Total stock-based compensation expense $ 25 $ 19 Income tax benefit recognized in the Statements of Income (4) (4) Stock-based compensation expense, net of tax $ 21 $ 15 RESTRICTED SHARE UNITS The table below summarizes RSU activity : RSUs Weighted Average Grant Date Fair Value Weighted Average Remaining Contractual Term (Years) Aggregate Intrinsic Value (in millions) Outstanding as of December 31, 2020 26,688,304 $ 19.66 2.0 $ 854 Granted 3,712,188 27.96 Vested and released (9,401,295) 10.38 316 Forfeited (416,825) 24.05 Outstanding as of March 31, 2021 20,582,372 $ 25.30 2.8 $ 707 As of March 31, 2021, there was $373 million of unrecognized compensation cost related to unvested RSUs that is expected to be recognized over a weighted average period of 3.8 years. Total payments for the employees' tax obligations to the relevant taxing authorities were $125 million for the first quarter of 2021, which were funded through the issuance of shares in at-the-market offerings, known as an ATM program. There were no such payments made during the first quarter of 2020. This payment is reflected as a financing activity within the unaudited Condensed Consolidated Statements of Cash Flows. |
Income Taxes
Income Taxes | 3 Months Ended |
Mar. 31, 2021 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes The Company’s effective tax rates were as follows: First Quarter (in millions) 2021 2020 Effective tax rate 18.3 % 23.9 % For the first quarter of 2021, the provision for income taxes was lower than the first quarter of 2020, which was primarily driven by the tax benefit received from excess tax deductions that were generated from the vesting of RSUs. |
Investments in Unconsolidated A
Investments in Unconsolidated Affiliates | 3 Months Ended |
Mar. 31, 2021 | |
Equity Method Investments and Joint Ventures [Abstract] | |
Investments in unconsolidated affiliates | The following table summarizes investments in unconsolidated affiliates as of March 31, 2021 and December 31, 2020: March 31, December 31, (in millions) Ownership Interest 2021 2020 BodyArmor 12.5 % $ 53 $ 51 Dyla LLC 12.4 % 12 12 Force Holdings LLC 33.3 % 5 5 Beverage startup companies (various) 13 15 Other (various) 5 5 Investments in unconsolidated affiliates $ 88 $ 88 |
Other Financial Information
Other Financial Information | 3 Months Ended |
Mar. 31, 2021 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Other Financial Information | Other Financial Information CASH AND CASH EQUIVALENTS The carrying value of cash, cash equivalents, restricted cash and restricted cash equivalents is valued as of the balance sheet date equating fair value and classified as Level 1. The following table provides a reconciliation of cash, cash equivalents, restricted cash and restricted cash equivalents reported with the unaudited Condensed Consolidated Balance Sheets to the total of the same amounts shown in the unaudited Condensed Consolidated Statements of Cash Flows: (in millions) March 31, 2021 December 31, 2020 Cash and cash equivalents $ 335 $ 240 Restricted cash and restricted cash equivalents (1) 14 15 Total cash, cash equivalents, restricted cash and restricted cash equivalents shown in the unaudited Condensed Consolidated Statement of Cash Flows $ 349 $ 255 (1) Restricted cash and cash equivalents primarily represent amounts held in escrow in connection with the acquisitions of Bai Brands LLC, Core Nutrition LLC and Big Red Group Holdings, LLC, which have a corresponding holdback liability recorded in other current liabilities, as shown below. ALLOWANCE FOR EXPECTED CREDIT LOSSES Activity in the allowance for expected credit losses account during the periods presented was as follows: (in millions) Allowance for Expected Credit Losses Balance as of December 31, 2020 $ 21 Charges to bad debt expense 1 Write-offs and adjustments — Balance as of March 31, 2021 $ 22 ACCOUNTS PAYABLE KDP has an agreement with a third party administrator which allows participating suppliers to track payments from KDP, and if voluntarily elected by the supplier, to sell payment obligations from KDP to financial institutions. Suppliers can sell one or more of KDP's payment obligations at their sole discretion and the rights and obligations of KDP to its suppliers are not impacted. KDP has no economic interest in a supplier’s decision to enter into these agreements and no direct financial relationship with the financial institutions. KDP's obligations to its suppliers, including amounts due and scheduled payment terms, are not impacted. KDP has been informed by the third party administrator that as of March 31, 2021 and December 31, 2020, $2,777 million and $2,578 million, respectively, of KDP's outstanding payment obligations were voluntarily elected by the supplier and sold to financial institutions. SELECTED BALANCE SHEET INFORMATION The tables below provide selected financial information from the unaudited Condensed Consolidated Balance Sheets: March 31, December 31, (in millions) 2021 2020 Inventories: Raw materials $ 259 $ 260 Work-in-progress 7 6 Finished goods 600 520 Total 866 786 Allowance for excess and obsolete inventories (25) (24) Total Inventories $ 841 $ 762 Prepaid expenses and other current assets: Other receivables $ 74 $ 85 Customer incentive programs 91 34 Derivative instruments 65 45 Prepaid marketing 15 15 Spare parts 60 55 Assets held for sale 2 2 Income tax receivable 10 11 Other 93 76 Total prepaid expenses and other current assets $ 410 $ 323 Other non-current assets: Customer incentive programs $ 67 $ 70 Marketable securities - trading (1) 42 41 Operating lease right-of-use assets 830 645 Derivative instruments 119 12 Equity securities without readily determinable fair values 1 1 Other 128 125 Total other non-current assets $ 1,187 $ 894 (1) Fair values of marketable securities are determined using quoted market prices from daily exchange traded markets, based on the closing price as of the balance sheet date, and are classified as Level 1. The fair value of marketable securities was $42 million and $41 million as of March 31, 2021 and December 31, 2020, respectively. March 31, December 31, (in millions) 2021 2020 Accrued expenses: Customer rebates & incentives $ 326 $ 382 Accrued compensation 149 215 Insurance reserve 40 35 Accrued interest 163 57 Accrued professional fees 24 21 Other accrued expenses 287 330 Total accrued expenses $ 989 $ 1,040 Other current liabilities: Dividends payable $ 232 $ 212 Income taxes payable 63 39 Operating lease liability 80 72 Finance lease liability 49 44 Derivative instruments 23 25 Holdback liabilities 12 15 Other 8 9 Total other current liabilities $ 467 $ 416 Other non-current liabilities: Pension and post-retirement liability $ 38 $ 38 Insurance reserves 74 72 Operating lease liability 760 580 Finance lease liability 367 298 Derivative instruments 16 18 Deferred compensation liability 42 41 Other 70 72 Total other non-current liabilities $ 1,367 $ 1,119 |
Accumulated Other Comprehensive
Accumulated Other Comprehensive Income | 3 Months Ended |
Mar. 31, 2021 | |
Equity [Abstract] | |
Accumulated Other Comprehensive Income | Accumulated Other Comprehensive Income (Loss) The following table provides a summary of changes in AOCI, net of taxes: (in millions) Foreign Currency Translation Adjustments Pension and Post-Retirement Benefit Liabilities Cash Flow Hedges Accumulated Other Comprehensive Income (Loss) Balance as of January 1, 2021 $ 95 $ (4) $ (14) $ 77 Other comprehensive income 16 — 68 84 Amounts reclassified from accumulated other comprehensive income — — 3 3 Net current period other comprehensive income 16 — 71 87 Balance as of March 31, 2021 $ 111 $ (4) $ 57 $ 164 Balance as of January 1, 2020 $ 104 $ — $ — $ 104 Other comprehensive loss (583) (1) — (584) Balance as of March 31, 2020 $ (479) $ (1) $ — $ (480) The following table presents the amount of (gains)/losses reclassified from AOCI into the unaudited Condensed Consolidated Statements of Income: First Quarter (in millions) Income Statement Caption 2021 2020 Cash Flow Hedges: Interest rate contracts Interest expense $ — $ — FX contracts Cost of sales 5 — Total 5 — Income tax benefit (2) — Total, net of tax $ 3 $ — |
Commitments and Contingencies
Commitments and Contingencies | 3 Months Ended |
Mar. 31, 2021 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Commitments and Contingencies LEGAL MATTERS The Company is involved from time to time in various claims, proceedings, and litigation. KDP establishes reserves for specific legal proceedings when the Company determines that the likelihood of an unfavorable outcome is probable and the amount of loss can be reasonably estimated. KDP has also identified certain other legal matters where the Company believes an unfavorable outcome is reasonably possible and/or for which no estimate of possible losses can be made. Antitrust Litigation In February 2014, TreeHouse Foods, Inc. and certain affiliated entities filed suit against KDP’s wholly-owned subsidiary, KGM, in the U.S. District Court for the Southern District of New York (“SDNY”) (TreeHouse Foods, Inc. et al. v. Green Mountain Coffee Roasters, Inc. et al). The TreeHouse complaint asserted claims under the federal antitrust laws and various state laws, contending that Keurig had monopolized alleged markets for single serve coffee brewers and single serve coffee pods. The TreeHouse complaint sought monetary damages, declaratory relief, injunctive relief and attorneys’ fees. In March 2014, JBR, Inc. filed suit against KGM in the U.S. District Court for the Eastern District of California (JBR, Inc. v. Keurig Green Mountain, Inc.). The claims asserted and relief sought in the JBR, Inc. complaint were substantially similar to the claims asserted and relief sought in the TreeHouse complaint. Beginning in March 2014, twenty-seven putative class actions asserting similar claims and seeking similar relief were filed on behalf of purported direct and indirect purchasers of KGM’s products in various federal district courts. In June 2014, the Judicial Panel on Multidistrict Litigation granted a motion to transfer these various actions, including the TreeHouse and JBR actions, to a single judicial district for coordinated or consolidated pre-trial proceedings (the “Multidistrict Antitrust Litigation”). Consolidated putative class action complaints by direct purchaser and indirect purchaser plaintiffs were filed in July 2014. An additional class action on behalf of indirect purchasers, originally filed in the Circuit Court of Faulkner County, Arkansas (Julie Rainwater et al. v. Keurig Green Mountain, Inc.), was transferred into the Multidistrict Antitrust Litigation in November 2015. In January 2019, McLane Company, Inc. filed suit against KGM (McLane Company, Inc. v. Keurig Green Mountain, Inc.) in the SDNY asserting similar claims and also was transferred into the Multidistrict Antitrust Litigation. These actions are now pending in the SDNY (In re: Keurig Green Mountain Single-Serve Coffee Antitrust Litigation). Discovery in the Multidistrict Antitrust Litigation commenced in December 2017. Separately, a statement of claim was filed in September 2014 against KGM and Keurig Canada Inc. in Ontario, Canada by Club Coffee L.P., a Canadian manufacturer of single serve beverage pods, asserting a breach of competition law and false and misleading statements by Keurig. In July 2020, KGM reached an agreement with the putative indirect purchaser class plaintiffs in the Multidistrict Antitrust Litigation to settle the claims asserted in their complaint for $31 million. The settlement class consists of individuals and entities in the United States that purchased, from persons other than KGM and not for purposes of resale, KGM manufactured or licensed single serve beverage portion packs during the applicable class period (beginning in September 2010 for most states). The court granted preliminary approval of the settlement in December 2020, and the Company paid the settlement amount in January 2021. Putative class members have the opportunity to object or opt out of the settlement, and a final approval hearing is scheduled in June 2021. KDP intends to vigorously defend the remaining lawsuits brought by Treehouse, JBR, McLane, the putative direct purchaser class and Club Coffee. At this time, the Company is unable to predict the outcome of these lawsuits, the potential loss or range of loss, if any, associated with the resolution of these lawsuits or any potential effect they may have on the Company or its operations. Proposition 65 Litigation In May 2011, CERT filed a lawsuit in the Superior Court of the State of California, County of Los Angeles, (Council for Education and Research on Toxics v. Brad Barry LLC, et al., Case No. BC461182), alleging that KGM, and certain other defendants who manufacture, package, distribute or sell coffee, failed to warn persons in California that KGM's coffee products expose persons to the chemical acrylamide in violation of Proposition 65. KGM, as part of a joint defense group organized to defend against the lawsuit, disputed CERT's claims and asserted multiple affirmative defenses. The case was scheduled to proceed to a third phase for trial on damages, remedies and attorneys' fees, but such trial did not occur in light of California’s Office of Environmental Health Hazard Assessment proposal of a new Proposition 65 regulation clarifying that cancer warnings are not required for chemicals, such as acrylamide, that are present in coffee as a result of roasting coffee beans. After the regulation took effect in October 2019, the litigation continued based on, among other items, CERT’s contentions that the regulation is legally invalid and, alternatively, cannot be applied to its pending claims. In August 2020, the court granted the defendants' motion for summary judgment, effectively ending CERT's Proposition 65 litigation at the trial court level. CERT has filed its appeal brief, and the Company intends to continue vigorously defending itself in this action. However, the Company believes that the likelihood that it will incur a material loss in connection with the CERT litigation is remote and accordingly, no loss contingency has been recorded. |
Related Parties
Related Parties | 3 Months Ended |
Mar. 31, 2021 | |
Related Party Transactions [Abstract] | |
Related Parties | Related Parties IDENTIFICATION OF RELATED PARTIES JAB holds a significant but non-controlling interest in KDP. As of March 31, 2021, JAB beneficially owned approximately 33% of KDP's outstanding common stock. JAB and its affiliates also hold investments in a number of other companies that have commercial relationships with the Company, including Peet's, Caribou Coffee Company, Inc., Panera Bread Company, Einstein Bros Bagels, and Krispy Kreme Doughnuts Inc. • KDP purchases certain raw materials from Peet's and manufactures coffee and tea portion packs under Peet's brands for sale by KDP and Peet's in the U.S. and Canada. • KDP exclusively manufactures, distributes and sells Peet's RTD beverage products in the U.S. and Canada. • KDP licenses the Caribou Coffee, Panera Bread and Krispy Kreme trademarks for use in the manufacturing of portion packs for the Keurig brewing system. • KDP sells various beverage concentrates and packaged beverages to Caribou Coffee Company, Inc., Panera Bread Company, Einstein Bros Bagels, and Krispy Kreme Doughnuts Inc. for resale to retail customers. |
Background and Basis of Prese_2
Background and Basis of Presentation (Policies) | 3 Months Ended |
Mar. 31, 2021 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Basis of Presentation | The accompanying unaudited condensed consolidated financial statements have been prepared in accordance with U.S. GAAP for interim financial information and in accordance with the instructions to Form 10-Q and Article 10 of Regulation S-X. Accordingly, they do not include all of the information and footnotes required by U.S. GAAP for complete consolidated financial statements. In the opinion of management, all adjustments, consisting principally of normal recurring adjustments, considered necessary for a fair presentation have been included. These unaudited condensed consolidated financial statements should be read in conjunction with KDP's consolidated financial statements and accompanying notes, included in the Company's Annual Report. Except as otherwise specified, references to the "first quarter" indicate the Company's quarterly periods ended March 31, 2021 and 2020. |
Principles of Consolidation | KDP consolidates all wholly owned subsidiaries. The Company consolidates investments in companies in which it holds the majority interest. In these cases, the third party equity interest is referred to as non-controlling interest. Non-controlling interests are presented as a separate component within equity in the unaudited Condensed Consolidated Balance Sheets, and net income attributable to the non-controlling interests are presented separately in the unaudited Condensed Consolidated Statements of Income. The Company uses the equity method to account for investments in companies if the investment provides the Company with the ability to exercise significant influence over operating and financial policies of the investee. Consolidated net income includes KDP's proportionate share of the net income or loss of these companies. Judgment regarding the level of influence over each equity method investment includes considering key factors such as ownership interest, representation on the board of directors or similar governing body, participation in policy-making decisions and material intercompany transactions. KDP eliminates from its financial results all intercompany transactions between entities included in the unaudited condensed consolidated financial statements. |
Use of Estimates | The process of preparing KDP's unaudited condensed consolidated financial statements in conformity with U.S. GAAP requires the use of estimates and judgments that affect the reported amount of assets, liabilities, revenue and expenses. These estimates and judgments are based on historical experience, future expectations and other factors and assumptions the Company believes to be reasonable under the circumstances. These estimates and judgments are reviewed on an ongoing basis and are revised when necessary. Changes in estimates are recorded in the period of change. Actual amounts may differ from these estimates |
Accounting Standards | RECENTLY ADOPTED PROVISIONS OF U.S. GAAP As of January 1, 2021, the Company adopted ASU 2020-01, Investments—Equity Securities (Topic 321), Investments—Equity Method and Joint Ventures (Topic 323), and Derivatives and Hedging (Topic 815): Clarifying the Interactions between Topic 321, Topic 323, and Topic 815. The objective of the new standard is to clarify the interaction of the accounting for equity securities, investments accounted for under the equity method of accounting and the accounting for certain forward contracts and purchased options accounted for under different topics in U.S. GAAP. The adoption of the standard did not impact KDP's consolidated financial statements. |
Long-term Obligations and Bor_2
Long-term Obligations and Borrowing Arrangements (Tables) | 3 Months Ended |
Mar. 31, 2021 | |
Debt Disclosure [Abstract] | |
Schedule of Short-term Debt [Table Text Block] | he following table provides information about the Company's borrowings under its commercial paper program: First Quarter (in millions, except %) 2021 2020 Weighted average commercial paper borrowings $ 22 $ 1,670 Weighted average borrowing rates 0.18 % 1.85 % |
Schedule of debt | The following table summarizes the Company 's long-term obligations: (in millions) March 31, 2021 December 31, 2020 Notes $ 13,465 $ 13,065 Term loan — 423 Subtotal 13,465 13,488 Less - current portion (1,750) (2,345) Long-term obligations $ 11,715 $ 11,143 The following table summarizes the Company's short-term borrowings and current portion of long-term obligations: (in millions) March 31, 2021 December 31, 2020 Commercial paper notes $ — $ — Revolving credit facilities — — Current portion of long-term obligations: Notes 1,750 2,246 Term loan — 99 Short-term borrowings and current portion of long-term obligations $ 1,750 $ 2,345 |
Schedule of long-term debt instruments | The Company's Notes consisted of the following: (in millions, except %) Issuance Maturity Date Rate March 31, 2021 December 31, 2020 2021 Merger Notes May 25, 2021 3.551% $ 1,750 $ 1,750 2021-A Notes November 15, 2021 3.200% — 250 2021-B Notes November 15, 2021 2.530% — 250 2022 Notes November 15, 2022 2.700% — 250 2023 Merger Notes May 25, 2023 4.057% 1,000 2,000 2023 Notes December 15, 2023 3.130% 500 500 2024 Notes (1) March 15, 2024 0.750% 1,150 — 2025 Merger Notes May 25, 2025 4.417% 1,000 1,000 2025 Notes November 15, 2025 3.400% 500 500 2026 Notes September 15, 2026 2.550% 400 400 2027 Notes June 15, 2027 3.430% 500 500 2028 Merger Notes May 25, 2028 4.597% 2,000 2,000 2030 Notes May 1, 2030 3.200% 750 750 2031 Notes March 15, 2031 2.250% 500 — 2038 Notes May 1, 2038 7.450% 125 125 2038 Merger Notes May 25, 2038 4.985% 500 500 2045 Notes November 15, 2045 4.500% 550 550 2046 Notes December 15, 2046 4.420% 400 400 2048 Merger Notes May 25, 2048 5.085% 750 750 2050 Notes May 1, 2050 3.800% 750 750 2051 Notes March 15, 2051 3.350% 500 — Principal amount $ 13,625 $ 13,225 Adjustment from principal amount to carrying amount (2) (160) (160) Carrying amount $ 13,465 $ 13,065 (1) The 2024 Notes may be called anytime on or after March 15, 2022, in whole or in part, at the Company’s option, at a redemption price equal to 100% of the principal amount being redeemed, plus accrued and unpaid interest. |
Schedule of line of credit facilities | The KDP Credit Agreements consist of the following: (in millions) March 31, 2021 December 31, 2020 Issuance Maturity Date Available Balances Carrying Value Carrying Value 2019 KDP Term Loan $ — $ — $ 425 KDP Revolver (1) February 2023 2,400 — — 2020 364-Day Credit Agreement — — — 2021 364-Day Credit Agreement March 2022 1,500 — — Principal amount $ — $ 425 Unamortized discounts and debt issuance costs — (2) Carrying amount $ — $ 423 (1) The KDP Revolver has $200 million letters of credit availability and none utilized as of March 31, 2021. |
Goodwill and Other Intangible_2
Goodwill and Other Intangible Assets (Tables) | 3 Months Ended |
Mar. 31, 2021 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule of changes in the carrying amount of goodwill by reportable segment | Changes in the carrying amount of goodwill by reportable segment are as follows: (in millions) Coffee Systems Packaged Beverages Beverage Concentrates Latin America Beverages Total Balance as of January 1, 2021 $ 9,795 $ 5,314 $ 4,536 $ 539 $ 20,184 Foreign currency translation 27 9 6 (17) 25 Balance as of March 31, 2021 $ 9,822 $ 5,323 $ 4,542 $ 522 $ 20,209 |
Schedule of net carrying amounts of intangible assets other than goodwill with indefinite lives | The net carrying amounts of intangible assets other than goodwill with indefinite lives are as follows: (in millions) March 31, 2021 December 31, 2020 Brands (1) $ 19,876 $ 19,874 Trade names 2,480 2,480 Contractual arrangements 123 123 Distribution rights 66 57 Total $ 22,545 $ 22,534 |
Schedule of net carrying amounts of intangible assets other than goodwill with definite lives | The net carrying amounts of intangible assets other than goodwill with definite lives are as follows: March 31, 2021 December 31, 2020 (in millions) Gross Amount Accumulated Amortization Net Amount Gross Amount Accumulated Amortization Net Amount Acquired technology $ 1,146 $ (346) $ 800 $ 1,146 $ (328) $ 818 Customer relationships 638 (143) 495 638 (135) 503 Trade names 128 (74) 54 127 (69) 58 Contractual arrangements 24 (6) 18 24 (5) 19 Brands 21 (6) 15 21 (5) 16 Distribution rights 29 (7) 22 26 (6) 20 Total $ 1,986 $ (582) $ 1,404 $ 1,982 $ (548) $ 1,434 |
Schedule of amortization expense for intangible assets with definite lives | Amortization expense for intangible assets with definite lives was as follows: First Quarter (in millions) 2021 2020 Amortization expense $ 33 $ 33 |
Schedule of future amortization expense | Amortization expense of these intangible assets over the remainder of 2021 and the next five years is expected to be as follows: Remainder of 2021 For the Years Ending December 31, (in millions) 2022 2023 2024 2025 2026 Expected amortization expense $ 101 $ 134 $ 132 $ 124 $ 110 $ 105 |
Restructuring and Integration_2
Restructuring and Integration Costs (Tables) | 3 Months Ended |
Mar. 31, 2021 | |
Restructuring and Related Activities [Abstract] | |
Schedule of restructuring reserve by type of cost | Restructuring liabilities for the DPS Integration Program, all of which were workforce reduction costs, were as follows for the period presented: (in millions) Restructuring Liabilities Balance as of January 1, 2021 $ 14 Charges to expense 13 Cash payments (9) Balance as of March 31, 2021 $ 18 |
Derivatives (Tables)
Derivatives (Tables) | 3 Months Ended |
Mar. 31, 2021 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Notional Amounts of Derivative Instruments | NOTIONAL AMOUNTS OF DERIVATIVE INSTRUMENTS The following table presents the notional amounts of KDP's outstanding derivative instruments by type: (in millions) March 31, 2021 December 31, 2020 Interest rate contracts Forward starting swaps, designated as cash flow hedges $ 2,500 $ — Receive-variable, pay-fixed interest rate swaps, not designated as hedging instruments 450 450 FX contracts Forward contracts, not designated as hedging instruments 505 476 Forward contracts, designated as cash flow hedges 369 333 Commodity contracts 450 450 |
Schedule of derivative instruments in statement of financial position, fair value | Not Designated as Hedging Instruments The following table summarizes the location of the fair value of the Company's derivative instruments which are not designated as hedging instruments within the unaudited Condensed Consolidated Balance Sheets. All such instruments are designated level 2 within the fair value hierarchy. (in millions) Balance Sheet Location March 31, 2021 December 31, 2020 Assets: Commodity contracts Prepaid expenses and other current assets $ 65 $ 45 Interest rate contracts Other non-current assets 2 — Commodity contracts Other non-current assets 25 12 Liabilities: Interest rate contracts Other current liabilities $ 2 $ 2 FX contracts Other current liabilities 7 6 Commodity contracts Other current liabilities 1 5 Interest rate contracts Other non-current liabilities — 7 FX contracts Other non-current liabilities 14 9 Commodity contracts Other non-current liabilities 2 2 Designated as Hedging Instruments The following table summarizes the location of the fair value of the Company's derivative instruments which are designated as hedging instruments within the unaudited Condensed Consolidated Balance Sheets. All such instruments are designated level 2 within the fair value hierarchy. (in millions) Balance Sheet Location March 31, 2021 December 31, 2020 Assets: Interest rate contracts Other non-current assets $ 92 $ — Liabilities: FX contracts Other current liabilities $ 13 $ 12 |
Schedule of derivative instruments not designated as hedging instruments | The following table presents the amount of (gains) losses recognized in the unaudited Condensed Consolidated Statements of Income related to derivative instruments not designated as hedging instruments under U.S. GAAP during the periods presented. Amounts include both realized and unrealized gains and losses. First Quarter (in millions) Income Statement Location 2021 2020 Interest rate contracts Interest expense $ (8) $ 4 FX contracts Cost of sales 4 (23) FX contracts Other (income) expense, net 5 (17) Commodity contracts Cost of sales (17) 17 Commodity contracts SG&A expenses (29) 45 Total $ (45) $ 26 |
Schedule of Cash Flow Hedges Included in Accumulated Other Comprehensive Income (Loss) [Table Text Block] | The following table presents the amount of loss reclassified from AOCI into the unaudited Condensed Consolidated Statements of Income related to derivative instruments designated as cash flow hedging instruments during the periods presented: First Quarter (in millions) Income Statement Location 2021 2020 Interest rate contracts Interest expense $ — $ — FX contracts Cost of sales 5 — |
Leases (Tables)
Leases (Tables) | 3 Months Ended |
Mar. 31, 2021 | |
Leases [Abstract] | |
Lease, Cost [Table Text Block] | The following table presents the components of lease cost: First Quarter (in millions) 2021 2020 Operating lease cost $ 30 $ 28 Finance lease cost Amortization of right-of-use assets 13 11 Interest on lease liabilities 3 4 Variable lease cost (1) 8 6 Short-term lease cost — — Sublease income — (1) Total lease cost $ 54 $ 48 (1) Variable lease cost primarily consists of common area maintenance costs, property taxes, and adjustments for inflation. |
Supplemental Cash Flow Information for Leases [Table Text Block] | The following table presents supplemental cash flow information about the Company's leases: First Quarter (in millions) 2021 2020 Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows from operating leases $ 28 $ 26 Operating cash flows from finance leases 3 4 Financing cash flows from finance leases 15 13 |
Schedule of Weighted Average Lease Disclosures [Table Text Block] | The following table presents information about the Company's weighted average discount rate and remaining lease term: March 31, 2021 December 31, 2020 Weighted average discount rate Operating leases 3.8 % 4.3 % Finance leases 4.5 % 4.4 % Weighted average remaining lease term Operating leases 13 years 12 years Finance leases 11 years 11 years |
Lessee, Operating Lease, Liability, Maturity [Table Text Block] | Future minimum lease payments for non-cancellable leases that have commenced and are reflected on the unaudited Condensed Consolidated Balance Sheets as of March 31, 2021 were as follows: (in millions) Operating Leases Finance Leases Remainder of 2021 $ 72 $ 52 2022 99 65 2023 92 59 2024 90 56 2025 84 52 2025 73 65 Thereafter 536 153 Total future minimum lease payments 1,046 502 Less: imputed interest (206) (86) Present value of minimum lease payments $ 840 $ 416 |
Finance Lease, Liability, Fiscal Year Maturity [Table Text Block] | Future minimum lease payments for non-cancellable leases that have commenced and are reflected on the unaudited Condensed Consolidated Balance Sheets as of March 31, 2021 were as follows: (in millions) Operating Leases Finance Leases Remainder of 2021 $ 72 $ 52 2022 99 65 2023 92 59 2024 90 56 2025 84 52 2025 73 65 Thereafter 536 153 Total future minimum lease payments 1,046 502 Less: imputed interest (206) (86) Present value of minimum lease payments $ 840 $ 416 |
Segments (Tables)
Segments (Tables) | 3 Months Ended |
Mar. 31, 2021 | |
Segment Reporting [Abstract] | |
Schedule of segment reporting information, by segment | Information about the Company's operations by reportable segment is as follows: First Quarter (in millions) 2021 2020 Segment Results – Net sales Coffee Systems $ 1,142 $ 973 Packaged Beverages 1,307 1,217 Beverage Concentrates 328 306 Latin America Beverages 125 117 Net sales $ 2,902 $ 2,613 |
Reconciliation of operating profit (loss) from segments to consolidated | First Quarter (in millions) 2021 2020 Segment Results – Income from operations Coffee Systems $ 336 $ 272 Packaged Beverages 175 189 Beverage Concentrates 238 197 Latin America Beverages 22 27 Unallocated corporate costs (131) (219) Income from operations $ 640 $ 466 |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 3 Months Ended |
Mar. 31, 2021 | |
Earnings Per Share [Abstract] | |
Schedule of earnings per share | The following table presents the Company's basic and diluted EPS and shares outstanding: First Quarter (in millions, except per share data) 2021 2020 Basic EPS: Net income attributable to KDP $ 325 $ 156 Weighted average common shares outstanding 1,409.2 1,407.0 Earnings per common share — basic $ 0.23 $ 0.11 Diluted EPS: Net income attributable to KDP $ 325 $ 156 Weighted average common shares outstanding 1,409.2 1,407.0 Effect of dilutive securities: RSUs 16.0 12.7 Stock options 0.3 0.4 PSUs 0.1 — Weighted average common shares outstanding and common stock equivalents 1,425.6 1,420.1 Earnings per common share — diluted $ 0.23 $ 0.11 Anti-dilutive shares excluded from the diluted weighted average shares outstanding calculation — 0.3 |
Revenue Recognition (Tables)
Revenue Recognition (Tables) | 3 Months Ended |
Mar. 31, 2021 | |
Revenue from Contract with Customer [Abstract] | |
Schedule of disaggregation of revenue | The following table disaggregates the Company's revenue by portfolio: (in millions) Coffee Systems Packaged Beverages Beverage Concentrates Latin America Beverages Total For the first quarter of 2021: CSD (1) $ — $ 624 $ 323 $ 87 $ 1,034 NCB (1) — 581 3 38 622 K-Cup pods (2) 903 — — — 903 Appliances 174 — — — 174 Other 65 102 2 — 169 Net sales $ 1,142 $ 1,307 $ 328 $ 125 $ 2,902 For the first quarter of 2020: CSD (1) $ — $ 563 $ 302 $ 82 $ 947 NCB (1) — 562 2 35 599 K-Cup pods (2) 791 — — — 791 Appliances 127 — — — 127 Other 55 92 2 — 149 Net sales $ 973 $ 1,217 $ 306 $ 117 $ 2,613 (1) Represents net sales of owned and partner brands within our portfolio. |
Stock Based Compensation (Table
Stock Based Compensation (Tables) | 3 Months Ended |
Mar. 31, 2021 | |
Share-based Payment Arrangement [Abstract] | |
Stock based compensation expense | The components of stock-based compensation expense are presented below: First Quarter (in millions) 2021 2020 Total stock-based compensation expense $ 25 $ 19 Income tax benefit recognized in the Statements of Income (4) (4) Stock-based compensation expense, net of tax $ 21 $ 15 |
Schedule of share-based compensation, restricted stock and restricted stock units activity | The table below summarizes RSU activity : RSUs Weighted Average Grant Date Fair Value Weighted Average Remaining Contractual Term (Years) Aggregate Intrinsic Value (in millions) Outstanding as of December 31, 2020 26,688,304 $ 19.66 2.0 $ 854 Granted 3,712,188 27.96 Vested and released (9,401,295) 10.38 316 Forfeited (416,825) 24.05 Outstanding as of March 31, 2021 20,582,372 $ 25.30 2.8 $ 707 |
Income Taxes Income Taxes (Tabl
Income Taxes Income Taxes (Tables) | 3 Months Ended |
Mar. 31, 2021 | |
Income Tax Disclosure [Abstract] | |
Schedule of Effective Income Tax Rate Reconciliation [Table Text Block] | The Company’s effective tax rates were as follows: First Quarter (in millions) 2021 2020 Effective tax rate 18.3 % 23.9 % |
Investments in Unconsolidated_2
Investments in Unconsolidated Affiliates (Tables) | 3 Months Ended |
Mar. 31, 2021 | |
Equity Method Investments and Joint Ventures [Abstract] | |
Equity method investments | The following table summarizes investments in unconsolidated affiliates as of March 31, 2021 and December 31, 2020: March 31, December 31, (in millions) Ownership Interest 2021 2020 BodyArmor 12.5 % $ 53 $ 51 Dyla LLC 12.4 % 12 12 Force Holdings LLC 33.3 % 5 5 Beverage startup companies (various) 13 15 Other (various) 5 5 Investments in unconsolidated affiliates $ 88 $ 88 |
Other Financial Information (Ta
Other Financial Information (Tables) | 3 Months Ended |
Mar. 31, 2021 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Schedule of cash and cash equivalents | The following table provides a reconciliation of cash, cash equivalents, restricted cash and restricted cash equivalents reported with the unaudited Condensed Consolidated Balance Sheets to the total of the same amounts shown in the unaudited Condensed Consolidated Statements of Cash Flows: (in millions) March 31, 2021 December 31, 2020 Cash and cash equivalents $ 335 $ 240 Restricted cash and restricted cash equivalents (1) 14 15 Total cash, cash equivalents, restricted cash and restricted cash equivalents shown in the unaudited Condensed Consolidated Statement of Cash Flows $ 349 $ 255 |
Schedule of other assets and other liabilities | The tables below provide selected financial information from the unaudited Condensed Consolidated Balance Sheets: March 31, December 31, (in millions) 2021 2020 Inventories: Raw materials $ 259 $ 260 Work-in-progress 7 6 Finished goods 600 520 Total 866 786 Allowance for excess and obsolete inventories (25) (24) Total Inventories $ 841 $ 762 Prepaid expenses and other current assets: Other receivables $ 74 $ 85 Customer incentive programs 91 34 Derivative instruments 65 45 Prepaid marketing 15 15 Spare parts 60 55 Assets held for sale 2 2 Income tax receivable 10 11 Other 93 76 Total prepaid expenses and other current assets $ 410 $ 323 Other non-current assets: Customer incentive programs $ 67 $ 70 Marketable securities - trading (1) 42 41 Operating lease right-of-use assets 830 645 Derivative instruments 119 12 Equity securities without readily determinable fair values 1 1 Other 128 125 Total other non-current assets $ 1,187 $ 894 (1) Fair values of marketable securities are determined using quoted market prices from daily exchange traded markets, based on the closing price as of the balance sheet date, and are classified as Level 1. The fair value of marketable securities was $42 million and $41 million as of March 31, 2021 and December 31, 2020, respectively. March 31, December 31, (in millions) 2021 2020 Accrued expenses: Customer rebates & incentives $ 326 $ 382 Accrued compensation 149 215 Insurance reserve 40 35 Accrued interest 163 57 Accrued professional fees 24 21 Other accrued expenses 287 330 Total accrued expenses $ 989 $ 1,040 Other current liabilities: Dividends payable $ 232 $ 212 Income taxes payable 63 39 Operating lease liability 80 72 Finance lease liability 49 44 Derivative instruments 23 25 Holdback liabilities 12 15 Other 8 9 Total other current liabilities $ 467 $ 416 Other non-current liabilities: Pension and post-retirement liability $ 38 $ 38 Insurance reserves 74 72 Operating lease liability 760 580 Finance lease liability 367 298 Derivative instruments 16 18 Deferred compensation liability 42 41 Other 70 72 Total other non-current liabilities $ 1,367 $ 1,119 |
Financing Receivable, Current, Allowance for Credit Loss [Table Text Block] | Activity in the allowance for expected credit losses account during the periods presented was as follows: (in millions) Allowance for Expected Credit Losses Balance as of December 31, 2020 $ 21 Charges to bad debt expense 1 Write-offs and adjustments — Balance as of March 31, 2021 $ 22 |
Accumulated Other Comprehensi_2
Accumulated Other Comprehensive Income (Tables) | 3 Months Ended |
Mar. 31, 2021 | |
Equity [Abstract] | |
Accumulated other comprehensive income (loss), net of taxes | The following table provides a summary of changes in AOCI, net of taxes: (in millions) Foreign Currency Translation Adjustments Pension and Post-Retirement Benefit Liabilities Cash Flow Hedges Accumulated Other Comprehensive Income (Loss) Balance as of January 1, 2021 $ 95 $ (4) $ (14) $ 77 Other comprehensive income 16 — 68 84 Amounts reclassified from accumulated other comprehensive income — — 3 3 Net current period other comprehensive income 16 — 71 87 Balance as of March 31, 2021 $ 111 $ (4) $ 57 $ 164 Balance as of January 1, 2020 $ 104 $ — $ — $ 104 Other comprehensive loss (583) (1) — (584) Balance as of March 31, 2020 $ (479) $ (1) $ — $ (480) |
Reclassification out of Accumulated Other Comprehensive Income | The following table presents the amount of (gains)/losses reclassified from AOCI into the unaudited Condensed Consolidated Statements of Income: First Quarter (in millions) Income Statement Caption 2021 2020 Cash Flow Hedges: Interest rate contracts Interest expense $ — $ — FX contracts Cost of sales 5 — Total 5 — Income tax benefit (2) — Total, net of tax $ 3 $ — |
Long-term Obligations and Bor_3
Long-term Obligations and Borrowing Arrangements - Long-Term Debt (Details) - USD ($) $ in Millions | Mar. 31, 2021 | Dec. 31, 2020 |
Debt Instrument [Line Items] | ||
Long-term debt | $ 13,465 | $ 13,488 |
Long-term Debt, Current Maturities | (1,750) | (2,345) |
Long-term obligations | 11,715 | 11,143 |
Senior Notes | ||
Debt Instrument [Line Items] | ||
Long-term debt | 13,465 | 13,065 |
Long-term Debt, Current Maturities | (1,750) | (2,246) |
Line of Credit | ||
Debt Instrument [Line Items] | ||
Long-term debt | 0 | 423 |
Long-term Debt, Current Maturities | 0 | (99) |
2019 KDP Term Loan | Line of Credit | ||
Debt Instrument [Line Items] | ||
Long-term debt | $ 0 | $ 423 |
Long-term Obligations and Bor_4
Long-term Obligations and Borrowing Arrangements - Current Debt (Details) - USD ($) $ in Millions | Mar. 31, 2021 | Dec. 31, 2020 | |
Short-term Debt [Line Items] | |||
Current portion of long-term debt | $ 1,750 | $ 2,345 | |
Short-term borrowings and current portion of long-term obligations | 1,750 | 2,345 | |
Commercial Paper | |||
Short-term Debt [Line Items] | |||
Short-term debt | 0 | 0 | |
Senior Notes | |||
Short-term Debt [Line Items] | |||
Current portion of long-term debt | 1,750 | 2,246 | |
Line of Credit | |||
Short-term Debt [Line Items] | |||
Current portion of long-term debt | 0 | 99 | |
KDP Revolver | Line of Credit | |||
Short-term Debt [Line Items] | |||
Long-term Line of Credit | [1] | 0 | 0 |
KDP Credit Agreements | KDP Revolver | Line of Credit | |||
Short-term Debt [Line Items] | |||
Long-term Line of Credit | $ 0 | $ 0 | |
[1] | The KDP Revolver has $200 million letters of credit availability and none utilized as of March 31, 2021. |
Long-term Obligations and Bor_5
Long-term Obligations and Borrowing Arrangements - Senior Unsecured Notes (Details) - USD ($) $ in Millions | Mar. 15, 2021 | Mar. 31, 2021 | Mar. 31, 2020 | Dec. 31, 2020 | |
Debt Instrument [Line Items] | |||||
Long-term debt | $ 13,465 | $ 13,488 | |||
Gain (Loss) on Extinguishment of Debt | (105) | $ (2) | |||
2023 Merger Notes | |||||
Debt Instrument [Line Items] | |||||
Extinguishment of Debt, Amount | $ 1,000 | ||||
Senior Notes Issued March 2021 [Member] | |||||
Debt Instrument [Line Items] | |||||
Debt Instrument, Unamortized Discount | 3 | ||||
Debt Issuance Costs, Gross | $ 13 | ||||
Senior Subordinated Notes | |||||
Debt Instrument [Line Items] | |||||
Gain (Loss) on Extinguishment of Debt | 104 | ||||
Senior Notes | |||||
Debt Instrument [Line Items] | |||||
Long term debt, carrying value | 13,625 | 13,225 | |||
Unamortized discounts and debt issuance costs | [1] | (160) | (160) | ||
Long-term debt | $ 13,465 | 13,065 | |||
Senior Notes | 2021 Merger Notes | |||||
Debt Instrument [Line Items] | |||||
Interest rate | 3.551% | ||||
Long term debt, carrying value | $ 1,750 | 1,750 | |||
Senior Notes | 2021-A Notes | |||||
Debt Instrument [Line Items] | |||||
Interest rate | 3.20% | ||||
Long term debt, carrying value | $ 0 | 250 | |||
Senior Notes | 2021-B Notes | |||||
Debt Instrument [Line Items] | |||||
Interest rate | 2.53% | ||||
Long term debt, carrying value | $ 0 | 250 | |||
Senior Notes | 2022 Notes | |||||
Debt Instrument [Line Items] | |||||
Interest rate | 2.70% | ||||
Long term debt, carrying value | $ 0 | 250 | |||
Senior Notes | 2023 Merger Notes | |||||
Debt Instrument [Line Items] | |||||
Interest rate | 4.057% | ||||
Long term debt, carrying value | $ 1,000 | 2,000 | |||
Senior Notes | 2023 Notes | |||||
Debt Instrument [Line Items] | |||||
Interest rate | 3.13% | ||||
Long term debt, carrying value | $ 500 | 500 | |||
Senior Notes | 2025 Merger Notes | |||||
Debt Instrument [Line Items] | |||||
Interest rate | 4.417% | ||||
Long term debt, carrying value | $ 1,000 | 1,000 | |||
Senior Notes | 2025 Notes | |||||
Debt Instrument [Line Items] | |||||
Interest rate | 3.40% | ||||
Long term debt, carrying value | $ 500 | 500 | |||
Senior Notes | 2026 Notes | |||||
Debt Instrument [Line Items] | |||||
Interest rate | 2.55% | ||||
Long term debt, carrying value | $ 400 | 400 | |||
Senior Notes | 2027 Notes | |||||
Debt Instrument [Line Items] | |||||
Interest rate | 3.43% | ||||
Long term debt, carrying value | $ 500 | 500 | |||
Senior Notes | 2028 Merger Notes | |||||
Debt Instrument [Line Items] | |||||
Interest rate | 4.597% | ||||
Long term debt, carrying value | $ 2,000 | 2,000 | |||
Senior Notes | 2030 Notes | |||||
Debt Instrument [Line Items] | |||||
Interest rate | 3.20% | ||||
Long term debt, carrying value | $ 750 | 750 | |||
Senior Notes | 2038 Merger Notes | |||||
Debt Instrument [Line Items] | |||||
Interest rate | 4.985% | ||||
Long term debt, carrying value | $ 500 | 500 | |||
Senior Notes | 2038 Notes | |||||
Debt Instrument [Line Items] | |||||
Interest rate | 7.45% | ||||
Long term debt, carrying value | $ 125 | 125 | |||
Senior Notes | 2045 Notes | |||||
Debt Instrument [Line Items] | |||||
Interest rate | 4.50% | ||||
Long term debt, carrying value | $ 550 | 550 | |||
Senior Notes | 2046 Notes | |||||
Debt Instrument [Line Items] | |||||
Interest rate | 4.42% | ||||
Long term debt, carrying value | $ 400 | 400 | |||
Senior Notes | 2048 Merger Notes | |||||
Debt Instrument [Line Items] | |||||
Interest rate | 5.085% | ||||
Long term debt, carrying value | $ 750 | 750 | |||
Senior Notes | 2050 Notes | |||||
Debt Instrument [Line Items] | |||||
Interest rate | 3.80% | ||||
Long term debt, carrying value | $ 750 | 750 | |||
Senior Notes | 2024 Notes | |||||
Debt Instrument [Line Items] | |||||
Interest rate | [2] | 0.75% | |||
Long term debt, carrying value | [2] | $ 1,150 | 0 | ||
Senior Notes | 2031 Notes | |||||
Debt Instrument [Line Items] | |||||
Interest rate | 2.25% | ||||
Long term debt, carrying value | $ 500 | 0 | |||
Senior Notes | 2051 Notes | |||||
Debt Instrument [Line Items] | |||||
Interest rate | 3.35% | ||||
Long term debt, carrying value | $ 500 | 0 | |||
Nonrecurring | Senior Notes | |||||
Debt Instrument [Line Items] | |||||
Long-term debt, fair value | $ 14,828 | $ 15,274 | |||
[1] | The carrying amount includes unamortized discounts, debt issuance costs and fair value adjustments related to the DPS Merger. | ||||
[2] | The 2024 Notes may be called anytime on or after March 15, 2022, in whole or in part, at the Company’s option, at a redemption price equal to 100% of the principal amount being redeemed, plus accrued and unpaid interest. |
Long-term Obligations and Bor_6
Long-term Obligations and Borrowing Arrangements - Borrowing Arrangements (Details) - USD ($) $ in Millions | Mar. 24, 2021 | Mar. 31, 2021 | Mar. 31, 2020 | Dec. 31, 2020 | |
Debt Instrument [Line Items] | |||||
Gain (Loss) on Extinguishment of Debt | $ (105) | $ (2) | |||
Long-term debt | 13,465 | $ 13,488 | |||
2019 KDP Term Loan [Member] | |||||
Debt Instrument [Line Items] | |||||
Gain (Loss) on Extinguishment of Debt | 1 | ||||
Long term debt, carrying value | 425 | ||||
2020 364-Day Credit Agreement [Member] | |||||
Debt Instrument [Line Items] | |||||
Maximum borrowing capacity | 0 | ||||
Long-term Line of Credit | 0 | 0 | |||
2021 364-Day Credit Agreement | |||||
Debt Instrument [Line Items] | |||||
Maximum borrowing capacity | 1,500 | ||||
Long-term Line of Credit | 0 | 0 | |||
Line of Credit Facility, Fee for Extending Terms | 0.75% | ||||
KDP Credit Agreements | |||||
Debt Instrument [Line Items] | |||||
Unamortized discounts and debt issuance costs | 0 | (2) | |||
Line of Credit | |||||
Debt Instrument [Line Items] | |||||
Long term debt, carrying value | 0 | 425 | |||
Long-term debt | 0 | 423 | |||
Letter of Credit | |||||
Debt Instrument [Line Items] | |||||
Maximum borrowing capacity | 200 | ||||
Letters of credit outstanding | 0 | ||||
Letter of Credit | Line of Credit | |||||
Debt Instrument [Line Items] | |||||
Maximum borrowing capacity | 100 | ||||
Letters of credit outstanding | 44 | ||||
KDP Revolver | |||||
Debt Instrument [Line Items] | |||||
Maximum borrowing capacity | [1] | 2,400 | |||
KDP Revolver | Line of Credit | |||||
Debt Instrument [Line Items] | |||||
Long-term Line of Credit | [1] | 0 | 0 | ||
KDP Revolver | Line of Credit | KDP Credit Agreements | |||||
Debt Instrument [Line Items] | |||||
Long-term Line of Credit | 0 | $ 0 | |||
Level 2 | 2019 KDP Term Loan [Member] | |||||
Debt Instrument [Line Items] | |||||
Long term debt, carrying value | $ 0 | ||||
London Interbank Offered Rate (LIBOR) [Member] | Minimum | 2021 364-Day Credit Agreement | |||||
Debt Instrument [Line Items] | |||||
Debt Instrument, Basis Spread on Variable Rate | 1.00% | ||||
London Interbank Offered Rate (LIBOR) [Member] | Maximum | 2021 364-Day Credit Agreement | |||||
Debt Instrument [Line Items] | |||||
Debt Instrument, Basis Spread on Variable Rate | 1.625% | ||||
Base Rate [Member] | Minimum | 2021 364-Day Credit Agreement | |||||
Debt Instrument [Line Items] | |||||
Debt Instrument, Basis Spread on Variable Rate | 0.00% | ||||
Base Rate [Member] | Maximum | 2021 364-Day Credit Agreement | |||||
Debt Instrument [Line Items] | |||||
Debt Instrument, Basis Spread on Variable Rate | 0.625% | ||||
[1] | The KDP Revolver has $200 million letters of credit availability and none utilized as of March 31, 2021. |
Long-term Obligations and Bor_7
Long-term Obligations and Borrowing Arrangements - Commercial Paper Program (Details) - Commercial Paper - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Short-term Debt [Line Items] | ||
Average outstanding amount | $ 22 | $ 1,670 |
Weighted average interest rate over time | 0.18% | 1.85% |
Long-term Obligations and Bor_8
Long-term Obligations and Borrowing Arrangements - Letter of Credit Facilities (Details) - Letter of Credit $ in Millions | Mar. 31, 2021USD ($) |
Line of Credit Facility [Line Items] | |
Maximum borrowing capacity | $ 200 |
Letters of credit outstanding | 0 |
Line of Credit | |
Line of Credit Facility [Line Items] | |
Maximum borrowing capacity | 100 |
Letters of credit outstanding | 44 |
Remaining borrowing capacity | $ 56 |
Goodwill and Other Intangible_3
Goodwill and Other Intangible Assets - Goodwill (Details) $ in Millions | 3 Months Ended |
Mar. 31, 2021USD ($) | |
Change in goodwill by operating segments [Abstract] | |
Balance as of January 1, 2021 | $ 20,184 |
Foreign currency impact | 25 |
Balance as of March 31, 2021 | 20,209 |
Beverage Concentrates | |
Change in goodwill by operating segments [Abstract] | |
Balance as of January 1, 2021 | 4,536 |
Foreign currency impact | 6 |
Balance as of March 31, 2021 | 4,542 |
Packaged Beverages | |
Change in goodwill by operating segments [Abstract] | |
Balance as of January 1, 2021 | 5,314 |
Foreign currency impact | 9 |
Balance as of March 31, 2021 | 5,323 |
Latin America Beverages | |
Change in goodwill by operating segments [Abstract] | |
Balance as of January 1, 2021 | 539 |
Foreign currency impact | (17) |
Balance as of March 31, 2021 | 522 |
Coffee Systems | |
Change in goodwill by operating segments [Abstract] | |
Balance as of January 1, 2021 | 9,795 |
Foreign currency impact | 27 |
Balance as of March 31, 2021 | $ 9,822 |
Goodwill and Other Intangible_4
Goodwill and Other Intangible Assets - Intangible Assets (Details) - USD ($) $ in Millions | 3 Months Ended | |||
Mar. 31, 2021 | Mar. 31, 2020 | Dec. 31, 2020 | ||
Change in intangible assets other than goodwill [Abstract] | ||||
Indefinite-lived intangible assets (excluding goodwill) | $ 22,545 | $ 22,534 | ||
Finite-lived intangible assets, gross | 1,986 | 1,982 | ||
Accumulated Amortization | (582) | (548) | ||
Finite-lived intangible assets, net | 1,404 | 1,434 | ||
Amortization expense | 33 | $ 33 | ||
Amortization expense of intangible assets [Abstract] | ||||
Remainder of year | 101 | |||
Year one | 134 | |||
Year two | 132 | |||
Year three | 124 | |||
Year four | 110 | |||
Year five | 105 | |||
Acquired technology | ||||
Change in intangible assets other than goodwill [Abstract] | ||||
Finite-lived intangible assets, gross | 1,146 | 1,146 | ||
Accumulated Amortization | (346) | (328) | ||
Finite-lived intangible assets, net | 800 | 818 | ||
Customer relationships | ||||
Change in intangible assets other than goodwill [Abstract] | ||||
Finite-lived intangible assets, gross | 638 | 638 | ||
Accumulated Amortization | (143) | (135) | ||
Finite-lived intangible assets, net | 495 | 503 | ||
Trade Names | ||||
Change in intangible assets other than goodwill [Abstract] | ||||
Finite-lived intangible assets, gross | 128 | 127 | ||
Accumulated Amortization | (74) | (69) | ||
Finite-lived intangible assets, net | 54 | 58 | ||
Brands | ||||
Change in intangible assets other than goodwill [Abstract] | ||||
Finite-lived intangible assets, gross | 21 | 21 | ||
Accumulated Amortization | (6) | (5) | ||
Finite-lived intangible assets, net | 15 | 16 | ||
Distribution rights | ||||
Change in intangible assets other than goodwill [Abstract] | ||||
Finite-lived intangible assets, gross | 29 | 26 | ||
Accumulated Amortization | (7) | (6) | ||
Finite-lived intangible assets, net | 22 | 20 | ||
Contractual arrangements | ||||
Change in intangible assets other than goodwill [Abstract] | ||||
Finite-lived intangible assets, gross | 24 | 24 | ||
Accumulated Amortization | (6) | (5) | ||
Finite-lived intangible assets, net | 18 | 19 | ||
Brands | ||||
Indefinite and Finite-Lived Intangible Assets by Major Class [Line Items] | ||||
Indefinite-lived Intangible Assets, Foreign Currency Translation Gain (Loss) | 2 | |||
Change in intangible assets other than goodwill [Abstract] | ||||
Indefinite-lived intangible assets (excluding goodwill) | [1] | 19,876 | 19,874 | |
Trade Names | ||||
Change in intangible assets other than goodwill [Abstract] | ||||
Indefinite-lived intangible assets (excluding goodwill) | 123 | 2,480 | ||
Contractual arrangements | ||||
Change in intangible assets other than goodwill [Abstract] | ||||
Indefinite-lived intangible assets (excluding goodwill) | 2,480 | 123 | ||
Distribution rights | ||||
Change in intangible assets other than goodwill [Abstract] | ||||
Indefinite-lived intangible assets (excluding goodwill) | $ 66 | $ 57 | ||
[1] | The increase of $2 million in brands with indefinite lives was due to foreign currency translation during the first quarter of 2021. |
Restructuring and Integration_3
Restructuring and Integration Costs - Restructuring Liabilities (Details) $ in Millions | 3 Months Ended |
Mar. 31, 2021USD ($) | |
Restructuring Reserve [Roll Forward] | |
Charges to expense | $ 13 |
Cash payments | (9) |
Restructuring Liabilities | |
Restructuring Reserve [Roll Forward] | |
Balance at beginning of period | 14 |
Balance at end of period | $ 18 |
Restructuring and Integration_4
Restructuring and Integration Costs - Restructuring Programs (Details) - USD ($) $ in Millions | 3 Months Ended | 33 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | Mar. 31, 2021 | |
Restructuring Cost and Reserve [Line Items] | |||
Expected annual synergies | $ 600 | ||
Expected cost | 750 | $ 750 | |
Restructuring and integration charges | $ 630 | ||
Integration program | |||
Restructuring Cost and Reserve [Line Items] | |||
Restructuring and integration charges | $ 43 | $ 53 |
Derivatives - Notional and Matu
Derivatives - Notional and Maturity Information (Details) - USD ($) $ in Millions | Mar. 31, 2021 | Dec. 31, 2020 |
Receive-Variable Pay-Fixed Interest Rate Swaps | Not Designated as Hedging Instrument | ||
Derivative [Line Items] | ||
Notional amounts of derivative instruments | $ 450 | $ 450 |
Foreign Exchange Forward | Not Designated as Hedging Instrument | ||
Derivative [Line Items] | ||
Notional amounts of derivative instruments | 505 | 476 |
Foreign Exchange Forward | Designated as Hedging Instrument | ||
Derivative [Line Items] | ||
Notional amounts of derivative instruments | 369 | 333 |
Commodity Contract | Not Designated as Hedging Instrument | ||
Derivative [Line Items] | ||
Notional amounts of derivative instruments | 450 | 450 |
Interest Rate Swap | Designated as Hedging Instrument | ||
Derivative [Line Items] | ||
Notional amounts of derivative instruments | $ 2,500 | $ 0 |
Derivatives - Fair Value (Detai
Derivatives - Fair Value (Details) - Recurring - Level 2 - USD ($) $ in Millions | Mar. 31, 2021 | Dec. 31, 2020 |
Interest Rate Contract | Other current liabilities | ||
Derivatives, Fair Value [Line Items] | ||
Derivative liability | $ 2 | $ 2 |
Interest Rate Contract | Not Designated as Hedging Instrument | Other non-current assets | ||
Derivatives, Fair Value [Line Items] | ||
Derivative asset | 2 | 0 |
Interest Rate Contract | Not Designated as Hedging Instrument | Other non-current liabilities | ||
Derivatives, Fair Value [Line Items] | ||
Derivative liability | 0 | 7 |
Foreign Exchange Forward | Other current liabilities | ||
Derivatives, Fair Value [Line Items] | ||
Derivative liability | 7 | 6 |
Foreign Exchange Forward | Not Designated as Hedging Instrument | Other non-current liabilities | ||
Derivatives, Fair Value [Line Items] | ||
Derivative liability | 14 | 9 |
Foreign Exchange Forward | Designated as Hedging Instrument | Other current liabilities | ||
Derivatives, Fair Value [Line Items] | ||
Derivative liability | 13 | 12 |
Commodity Contract | Other current liabilities | ||
Derivatives, Fair Value [Line Items] | ||
Derivative liability | 1 | 5 |
Commodity Contract | Not Designated as Hedging Instrument | Prepaid expenses and other current assets | ||
Derivatives, Fair Value [Line Items] | ||
Derivative asset | 65 | 45 |
Commodity Contract | Not Designated as Hedging Instrument | Other non-current assets | ||
Derivatives, Fair Value [Line Items] | ||
Derivative asset | 25 | 12 |
Commodity Contract | Not Designated as Hedging Instrument | Other non-current liabilities | ||
Derivatives, Fair Value [Line Items] | ||
Derivative liability | 2 | 2 |
Interest Rate Swap | Designated as Hedging Instrument | Other non-current assets | ||
Derivatives, Fair Value [Line Items] | ||
Derivative liability | $ 92 | $ 0 |
Derivatives - Impact on Net Inc
Derivatives - Impact on Net Income (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Foreign Exchange Forward | Cost of sales | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Amount of (Gain) Loss Recognized in Income | $ (23) | |
Not Designated as Hedging Instrument | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Amount of (Gain) Loss Recognized in Income | $ (45) | 26 |
Not Designated as Hedging Instrument | Commodity Contract | Cost of sales | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Amount of (Gain) Loss Recognized in Income | (17) | 17 |
Not Designated as Hedging Instrument | Commodity Contract | SG&A expenses | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Amount of (Gain) Loss Recognized in Income | (29) | 45 |
Not Designated as Hedging Instrument | Interest Rate Contract | Interest expense | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Amount of (Gain) Loss Recognized in Income | (8) | 4 |
Not Designated as Hedging Instrument | Foreign Exchange Forward | Cost of sales | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Amount of (Gain) Loss Recognized in Income | 4 | |
Not Designated as Hedging Instrument | Foreign Exchange Forward | Other expense, net | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Amount of (Gain) Loss Recognized in Income | $ 5 | $ (17) |
Derivatives - Impact of Cash Fl
Derivatives - Impact of Cash Flow Hedges (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Foreign Exchange Forward | ||
Derivative [Line Items] | ||
Reclassification from AOCI, Current Period, before Tax, Attributable to Parent | $ 5 | $ 0 |
Cash Flow Hedge Gain (Loss) to be Reclassified within Twelve Months | 15 | |
Interest Rate Swap | ||
Derivative [Line Items] | ||
Reclassification from AOCI, Current Period, before Tax, Attributable to Parent | $ 0 | $ 0 |
Leases (Details)
Leases (Details) - USD ($) $ in Millions | 3 Months Ended | |||
Mar. 31, 2021 | Mar. 31, 2020 | Dec. 31, 2020 | ||
Lease, Cost [Abstract] | ||||
Operating lease cost | $ 30 | $ 28 | ||
Amortization of right-of-use assets | 13 | 11 | ||
Interest on lease liabilities | 3 | 4 | ||
Variable lease cost(1) | [1] | 8 | 6 | |
Short-term lease cost | 0 | 0 | ||
Sublease Income | 0 | (1) | ||
Total lease cost | 54 | 48 | ||
Cash Flow, Operating Activities, Lessee [Abstract] | ||||
Operating cash flows from operating leases | 28 | 26 | ||
Operating cash flows from finance leases | 3 | 4 | ||
Cash Flow, Financing Activities, Lessee [Abstract] | ||||
Financing cash flows from finance leases | $ 15 | $ 13 | ||
Lessee, Operating Lease, Description [Abstract] | ||||
Operating Lease, Weighted Average Discount Rate, Percent | 3.80% | 4.30% | ||
Operating Lease, Weighted Average Remaining Lease Term | 13 years | 12 years | ||
Lessee, Finance Lease, Description [Abstract] | ||||
Finance Lease, Weighted Average Discount Rate, Percent | 4.50% | 4.40% | ||
Finance Lease, Weighted Average Remaining Lease Term | 11 years | 11 years | ||
Lessee, Operating Lease, Liability, Payment, Due [Abstract] | ||||
Lessee, Operating Lease, Liability, to be Paid, Remainder of Fiscal Year | $ 72 | |||
Lessee, Operating Lease, Liability, to be Paid, Year One | 99 | |||
Lessee, Operating Lease, Liability, to be Paid, Year Two | 92 | |||
Lessee, Operating Lease, Liability, to be Paid, Year Three | 90 | |||
Lessee, Operating Lease, Liability, to be Paid, Year Four | 84 | |||
Lessee, Operating Lease, Liability, to be Paid, Year Five | 73 | |||
Lessee, Operating Lease, Liability, to be Paid, after Year Five | 536 | |||
Lessee, Operating Lease, Liability, to be Paid | 1,046 | |||
Lessee, Operating Lease, Liability, Undiscounted Excess Amount | (206) | |||
Operating Lease, Liability | 840 | |||
Finance Lease, Liability, Payment, Due [Abstract] | ||||
Finance Lease, Liability, to be Paid, Remainder of Fiscal Year | 52 | |||
Finance Lease, Liability, to be Paid, Year One | 65 | |||
Finance Lease, Liability, to be Paid, Year Two | 59 | |||
Finance Lease, Liability, to be Paid, Year Three | 56 | |||
Finance Lease, Liability, to be Paid, Year Four | 52 | |||
Finance Lease, Liability, to be Paid, Year Five | 65 | |||
Finance Lease, Liability, to be Paid, after Year Five | 153 | |||
Finance Lease, Liability, Payment, Due | 502 | |||
Finance Lease, Liability, Undiscounted Excess Amount | (86) | |||
Finance Lease, Liability | 416 | |||
Lessee, Lease, Description [Line Items] | ||||
Leases not yet commenced, estimated obligation | $ 343 | |||
Minimum | ||||
Lessee, Lease, Description [Line Items] | ||||
Lease not yet commenced, term | 5 years | |||
Maximum | ||||
Lessee, Lease, Description [Line Items] | ||||
Lease not yet commenced, term | 10 years | |||
[1] | Variable lease cost primarily consists of common area maintenance costs, property taxes, and adjustments for inflation. |
Segments - Schedules of Results
Segments - Schedules of Results (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Segment Results – Income from operations | ||
Net sales | $ 2,902 | $ 2,613 |
Income from operations | 640 | 466 |
Beverage Concentrates | ||
Segment Results – Income from operations | ||
Net sales | 328 | 306 |
Packaged Beverages | ||
Segment Results – Income from operations | ||
Net sales | 1,307 | 1,217 |
Latin America Beverages | ||
Segment Results – Income from operations | ||
Net sales | 125 | 117 |
Coffee Systems | ||
Segment Results – Income from operations | ||
Net sales | 1,142 | 973 |
Operating Segments | Beverage Concentrates | ||
Segment Results – Income from operations | ||
Income from operations | 238 | 197 |
Operating Segments | Packaged Beverages | ||
Segment Results – Income from operations | ||
Income from operations | 175 | 189 |
Operating Segments | Latin America Beverages | ||
Segment Results – Income from operations | ||
Income from operations | 22 | 27 |
Operating Segments | Coffee Systems | ||
Segment Results – Income from operations | ||
Income from operations | 336 | 272 |
Corporate Unallocated | ||
Segment Results – Income from operations | ||
Income from operations | $ (131) | $ (219) |
Earnings Per Share (Details)
Earnings Per Share (Details) - USD ($) $ / shares in Units, shares in Millions | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Basic EPS: | ||
Net income | $ 325,000,000 | $ 156,000,000 |
Weighted average common shares outstanding (in shares) | 1,409.2 | 1,407 |
Earnings per common share - basic (in dollars per share) | $ 0.23 | $ 0.11 |
Diluted EPS: | ||
Weighted average common shares outstanding (in shares) | 1,409.2 | 1,407 |
Effect of dilutive securities: | ||
Weighted average common shares outstanding and common stock equivalents (in shares) | 1,425.6 | 1,420.1 |
Earnings per common share - diluted (in dollars per share) | $ 0.23 | $ 0.11 |
Anti-dilutive shares excluded from the diluted weighted average shares outstanding calculation (in shares) | 0 | 0.3 |
Net Income (Loss), Including Portion Attributable to Noncontrolling Interest | $ 325,000,000 | $ 156,000,000 |
Stock options | ||
Effect of dilutive securities: | ||
Effect of dilutive securities (in shares) | 0.3 | 0.4 |
RSUs | ||
Effect of dilutive securities: | ||
Effect of dilutive securities (in shares) | 16 | 12.7 |
Performance Shares | ||
Effect of dilutive securities: | ||
Effect of dilutive securities (in shares) | 0.1 | 0 |
Revenue Recognition (Details)
Revenue Recognition (Details) - USD ($) $ in Millions | 3 Months Ended | ||
Mar. 31, 2021 | Mar. 31, 2020 | ||
Disaggregation of Revenue [Line Items] | |||
Net sales | $ 2,902 | $ 2,613 | |
CSD | |||
Disaggregation of Revenue [Line Items] | |||
Net sales | [1] | 1,034 | 947 |
NCB | |||
Disaggregation of Revenue [Line Items] | |||
Net sales | [1] | 622 | 599 |
Pods | |||
Disaggregation of Revenue [Line Items] | |||
Net sales | [2] | 903 | 791 |
Appliances | |||
Disaggregation of Revenue [Line Items] | |||
Net sales | 174 | 127 | |
Other | |||
Disaggregation of Revenue [Line Items] | |||
Net sales | 169 | 149 | |
Beverage Concentrates | |||
Disaggregation of Revenue [Line Items] | |||
Net sales | 328 | 306 | |
Beverage Concentrates | CSD | |||
Disaggregation of Revenue [Line Items] | |||
Net sales | [1] | 323 | 302 |
Beverage Concentrates | NCB | |||
Disaggregation of Revenue [Line Items] | |||
Net sales | [1] | 3 | 2 |
Beverage Concentrates | Pods | |||
Disaggregation of Revenue [Line Items] | |||
Net sales | [2] | 0 | 0 |
Beverage Concentrates | Appliances | |||
Disaggregation of Revenue [Line Items] | |||
Net sales | 0 | 0 | |
Beverage Concentrates | Other | |||
Disaggregation of Revenue [Line Items] | |||
Net sales | 2 | 2 | |
Packaged Beverages | |||
Disaggregation of Revenue [Line Items] | |||
Net sales | 1,307 | 1,217 | |
Packaged Beverages | CSD | |||
Disaggregation of Revenue [Line Items] | |||
Net sales | [1] | 624 | 563 |
Packaged Beverages | NCB | |||
Disaggregation of Revenue [Line Items] | |||
Net sales | [1] | 581 | 562 |
Packaged Beverages | Pods | |||
Disaggregation of Revenue [Line Items] | |||
Net sales | [2] | 0 | 0 |
Packaged Beverages | Appliances | |||
Disaggregation of Revenue [Line Items] | |||
Net sales | 0 | 0 | |
Packaged Beverages | Other | |||
Disaggregation of Revenue [Line Items] | |||
Net sales | 102 | 92 | |
Latin America Beverages | |||
Disaggregation of Revenue [Line Items] | |||
Net sales | 125 | 117 | |
Latin America Beverages | CSD | |||
Disaggregation of Revenue [Line Items] | |||
Net sales | [1] | 87 | 82 |
Latin America Beverages | NCB | |||
Disaggregation of Revenue [Line Items] | |||
Net sales | [1] | 38 | 35 |
Latin America Beverages | Pods | |||
Disaggregation of Revenue [Line Items] | |||
Net sales | [2] | 0 | 0 |
Latin America Beverages | Appliances | |||
Disaggregation of Revenue [Line Items] | |||
Net sales | 0 | 0 | |
Latin America Beverages | Other | |||
Disaggregation of Revenue [Line Items] | |||
Net sales | 0 | 0 | |
Coffee Systems | |||
Disaggregation of Revenue [Line Items] | |||
Net sales | 1,142 | 973 | |
Coffee Systems | CSD | |||
Disaggregation of Revenue [Line Items] | |||
Net sales | [1] | 0 | 0 |
Coffee Systems | NCB | |||
Disaggregation of Revenue [Line Items] | |||
Net sales | [1] | 0 | 0 |
Coffee Systems | Pods | |||
Disaggregation of Revenue [Line Items] | |||
Net sales | [2] | 903 | 791 |
Coffee Systems | Appliances | |||
Disaggregation of Revenue [Line Items] | |||
Net sales | 174 | 127 | |
Coffee Systems | Other | |||
Disaggregation of Revenue [Line Items] | |||
Net sales | $ 65 | $ 55 | |
[1] | Represents net sales of owned and partner brands within our portfolio. | ||
[2] | Represents net sales from owned brands, partner brands and private label owners. Net sales for partner brands and private label owners are contractual and long-term in nature. |
Stock Based Compensation (Detai
Stock Based Compensation (Details) - USD ($) $ / shares in Units, $ in Millions | 3 Months Ended | 12 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | Dec. 31, 2020 | |
Share-based Payment Arrangement, Additional Disclosure [Abstract] | |||
Total stock-based compensation expense | $ 25 | $ 19 | |
Income tax benefit recognized in the Statements of Income | (4) | (4) | |
Stock-based compensation expense, net of tax | 21 | 15 | |
Aggregate Intrinsic Value (in millions) | |||
Payment, Tax Withholding, Share-based Payment Arrangement | $ 125 | $ 0 | |
RSUs | |||
RSUs | |||
Outstanding as of beginning of the period (in shares) | 26,688,304 | ||
Granted (in shares) | 3,712,188 | ||
Vested and released (in shares) | (9,401,295) | ||
Forfeited (in shares) | (416,825) | ||
Outstanding as of end of the period (in shares) | 20,582,372 | 26,688,304 | |
Unrecognized compensation costs related to nonvested awards | $ 373 | ||
Weighted average recognition period of unrecognized compensation costs | 3 years 9 months 18 days | ||
Weighted Average Grant Date Fair Value | |||
Outstanding as of the beginning of the period (in dollars per share) | $ 19.66 | ||
Granted (in dollars per share) | 27.96 | ||
Vested and released (in dollars per share) | 10.38 | ||
Forfeited (in dollars per share) | 24.05 | ||
Outstanding as of the end of the period (in dollars per share) | $ 25.30 | $ 19.66 | |
Weighted Average Remaining Contractual Term (Years) | |||
Outstanding | 2 years 9 months 18 days | 2 years | |
Aggregate Intrinsic Value (in millions) | |||
Outstanding as of the beginning of the period | $ 854 | ||
Vested and released | 316 | ||
Outstanding as of the end of the period | $ 707 | $ 854 |
Income Taxes (Details)
Income Taxes (Details) | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Income Tax Disclosure [Abstract] | ||
Effective income tax rate | 18.30% | 23.90% |
Investments in Unconsolidated_3
Investments in Unconsolidated Affiliates - Investments In Unconsolidated Affiliates (Details) - USD ($) $ in Millions | Mar. 31, 2021 | Dec. 31, 2020 |
Schedule of Equity Method Investments [Line Items] | ||
Investments in unconsolidated affiliates | $ 88 | $ 88 |
BA Sports Nutrition LLC | ||
Schedule of Equity Method Investments [Line Items] | ||
Ownership percentage | 12.50% | |
Investments in unconsolidated affiliates | $ 53 | 51 |
Dyla LLC | ||
Schedule of Equity Method Investments [Line Items] | ||
Ownership percentage | 12.40% | |
Investments in unconsolidated affiliates | $ 12 | 12 |
Force Holding LLC | ||
Schedule of Equity Method Investments [Line Items] | ||
Ownership percentage | 33.30% | |
Investments in unconsolidated affiliates | $ 5 | 5 |
Beverage startup companies | ||
Schedule of Equity Method Investments [Line Items] | ||
Investments in unconsolidated affiliates | 13 | 15 |
Other | ||
Schedule of Equity Method Investments [Line Items] | ||
Investments in unconsolidated affiliates | $ 5 | $ 5 |
Other Financial Information (De
Other Financial Information (Details) - USD ($) $ in Millions | 3 Months Ended | ||||
Mar. 31, 2021 | Dec. 31, 2020 | Mar. 31, 2020 | Dec. 31, 2019 | ||
Inventory Disclosure [Abstract] | |||||
Raw materials | $ 259 | $ 260 | |||
Work-in-progress | 7 | 6 | |||
Finished goods | 600 | 520 | |||
Inventory, Gross | 866 | 786 | |||
Inventory Valuation Reserves | 25 | 24 | |||
Total | 841 | 762 | |||
Prepaid expenses and other current assets: | |||||
Other receivables | 74 | 85 | |||
Customer incentive programs | 91 | 34 | |||
Derivative instruments | 65 | 45 | |||
Prepaid marketing | 15 | 15 | |||
Spare parts | 60 | 55 | |||
Assets held for sale | 2 | 2 | |||
Income tax receivable | 10 | 11 | |||
Other | 93 | 76 | |||
Prepaid expenses and other current assets | 410 | 323 | |||
Other non-current assets: | |||||
Customer incentive programs | 67 | 70 | |||
Marketable securities - trading | [1] | 42 | 41 | ||
Operating lease right-of-use assets | 830 | 645 | |||
Derivative instruments | 119 | 12 | |||
Equity securities without readily determinable fair values | 1 | 1 | |||
Other | 128 | 125 | |||
Total other non-current assets | 1,187 | 894 | |||
Accrued expenses: | |||||
Customer rebates & incentives | 326 | 382 | |||
Accrued compensation | 149 | 215 | |||
Insurance reserve | 40 | 35 | |||
Interest accrual | 163 | 57 | |||
Accrued professional fees | 24 | 21 | |||
Other accrued expenses | 287 | 330 | |||
Total accrued expenses | 989 | 1,040 | |||
Other current liabilities: | |||||
Dividends payable | 232 | 212 | |||
Income taxes payable | 63 | 39 | |||
Operating lease liability | 80 | 72 | |||
Finance lease liability | 49 | 44 | |||
Derivative instruments | 23 | 25 | |||
Holdback liabilities | 12 | 15 | |||
Other | 8 | 9 | |||
Total other current liabilities | 467 | 416 | |||
Other non-current liabilities: | |||||
Long-term pension and postretirement liability | 38 | 38 | |||
Insurance reserves | 74 | 72 | |||
Operating lease liability | 760 | 580 | |||
Finance lease liability | 367 | 298 | |||
Derivative instruments | 16 | 18 | |||
Deferred compensation liability | 42 | 41 | |||
Other | 70 | 72 | |||
Other non-current liabilities | 1,367 | 1,119 | |||
Other Financial Information [Line Items] | |||||
Cash and Cash Equivalents, at Carrying Value | 335 | 240 | |||
Restricted cash and restricted cash equivalents | [2] | 14 | 15 | ||
Cash, Cash Equivalents, Restricted Cash and Restricted Cash Equivalents | 349 | 255 | $ 223 | $ 111 | |
Accounts Receivable, Allowance for Credit Loss | 22 | 21 | |||
Charges to bad debt expense | 1 | ||||
Accounts Receivable, Allowance for Credit Loss, Writeoff | 0 | ||||
Suppliers Utilizing Third Party Services | |||||
Other Financial Information [Line Items] | |||||
Accounts payable | $ 2,777 | $ 2,578 | |||
[1] | Fair values of marketable securities are determined using quoted market prices from daily exchange traded markets, based on the closing price as of the balance sheet date, and are classified as Level 1. The fair value of marketable securities was $42 million and $41 million as of March 31, 2021 and December 31, 2020, respectively. | ||||
[2] | Restricted cash and cash equivalents primarily represent amounts held in escrow in connection with the acquisitions of Bai Brands LLC, Core Nutrition LLC and Big Red Group Holdings, LLC, which have a corresponding holdback liability recorded in other current liabilities, as shown below. ALLOWANCE FOR EXPECTED CREDIT LOSSES Activity in the allowance for expected credit losses account during the periods presented was as follows: (in millions) Allowance for Expected Credit Losses Balance as of December 31, 2020 $ 21 Charges to bad debt expense 1 Write-offs and adjustments — Balance as of March 31, 2021 $ 22 |
Accumulated Other Comprehensi_3
Accumulated Other Comprehensive Income (Details) - USD ($) | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||
Total stockholders' equity at beginning of period | $ 23,829,000,000 | $ 23,257,000,000 |
Reclassification from Accumulated Other Comprehensive Income, Current Period, Net of Tax | 3,000,000 | |
Total stockholders' equity at end of period | 24,070,000,000 | 22,640,000,000 |
Other Comprehensive Income (Loss), Net of Tax, Portion Attributable to Parent | 87,000,000 | (584,000,000) |
Reclassification from AOCI, Current Period, Tax | (2,000,000) | 0 |
Interest Rate Swap | ||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||
Reclassification from AOCI, Current Period, before Tax, Attributable to Parent | 0 | 0 |
Foreign Exchange Forward | ||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||
Reclassification from AOCI, Current Period, before Tax, Attributable to Parent | 5,000,000 | 0 |
Accumulated Other Comprehensive Income (Loss) | ||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||
Total stockholders' equity at beginning of period | 77,000,000 | 104,000,000 |
Other comprehensive income | 84,000,000 | (584,000,000) |
Total stockholders' equity at end of period | 164,000,000 | (480,000,000) |
Other Comprehensive Income (Loss), Net of Tax, Portion Attributable to Parent | 87,000,000 | (584,000,000) |
Accumulated Foreign Currency Adjustment Attributable to Parent [Member] | ||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||
Total stockholders' equity at beginning of period | 95,000,000 | 104,000,000 |
Other comprehensive income | 16,000,000 | (583,000,000) |
Reclassification from Accumulated Other Comprehensive Income, Current Period, Net of Tax | 0 | |
Total stockholders' equity at end of period | 111,000,000 | (479,000,000) |
Other Comprehensive Income (Loss), Net of Tax, Portion Attributable to Parent | 16,000,000 | |
Accumulated Defined Benefit Plans Adjustment Attributable to Parent [Member] | ||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||
Total stockholders' equity at beginning of period | (4,000,000) | 0 |
Other comprehensive income | 0 | (1,000,000) |
Reclassification from Accumulated Other Comprehensive Income, Current Period, Net of Tax | 0 | |
Total stockholders' equity at end of period | (4,000,000) | (1,000,000) |
Accumulated Gain (Loss), Cash Flow Hedge, Including Noncontrolling Interest [Member] | ||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||
Total stockholders' equity at beginning of period | (14,000,000) | 0 |
Other comprehensive income | 68,000,000 | 0 |
Reclassification from Accumulated Other Comprehensive Income, Current Period, Net of Tax | 3,000,000 | 0 |
Total stockholders' equity at end of period | 57,000,000 | 0 |
Other Comprehensive Income (Loss), Net of Tax, Portion Attributable to Parent | 71,000,000 | |
Accumulated Gain (Loss), Net, Cash Flow Hedge, Parent | ||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||
Reclassification from AOCI, Current Period, before Tax, Attributable to Parent | 5,000,000 | 0 |
Accumulated Gain (Loss), Net, Cash Flow Hedge, Parent | Interest Rate Swap | ||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||
Reclassification from AOCI, Current Period, before Tax, Attributable to Parent | 0 | 0 |
Accumulated Gain (Loss), Net, Cash Flow Hedge, Parent | Foreign Exchange Forward | ||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||
Reclassification from AOCI, Current Period, before Tax, Attributable to Parent | $ 5,000,000 | $ 0 |
Commitments and Contingencies C
Commitments and Contingencies Commitments and Contingencies (Details) | 3 Months Ended |
Mar. 31, 2020USD ($) | |
Antitrust Litigation [Member] | |
Loss Contingencies [Line Items] | |
Litigation Settlement, Amount Awarded to Other Party | $ 31,000,000 |
Related Parties Related Parties
Related Parties Related Parties (Details) | Mar. 31, 2021 |
JAB and affiliates [Member] | |
Related Party Transaction [Line Items] | |
Common Stock Owned by Related Party, Percent | 33.00% |