Cover Page
Cover Page - USD ($) $ in Billions | 12 Months Ended | ||
Dec. 31, 2020 | Feb. 23, 2021 | Jun. 30, 2020 | |
Cover [Abstract] | |||
Document Type | 10-K | ||
Document Annual Report | true | ||
Document Transition Report | false | ||
Document Period End Date | Dec. 31, 2020 | ||
Entity File Number | 001-33829 | ||
Entity Registrant Name | Keurig Dr Pepper Inc. | ||
Entity Incorporation, State or Country Code | DE | ||
Entity Tax Identification Number | 98-0517725 | ||
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 | ||
Entity Well-known Seasoned Issuer | Yes | ||
Entity Voluntary Filers | No | ||
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 | 1,407,267,272 | ||
Current Fiscal Year End Date | --12-31 | ||
Amendment Flag | false | ||
Document Fiscal Year Focus | 2020 | ||
Document Fiscal Period Focus | FY | ||
Entity Central Index Key | 0001418135 | ||
Entity Public Float | $ 13.7 | ||
ICFR Auditor Attestation Flag | true |
Consolidated Statements of Inco
Consolidated Statements of Income - USD ($) shares in Millions, $ in Millions | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Income Statement [Abstract] | |||
Net sales | $ 11,618 | $ 11,120 | $ 7,442 |
Cost of sales | 5,132 | 4,778 | 3,560 |
Gross profit | 6,486 | 6,342 | 3,882 |
Selling, general and administrative expenses | 3,978 | 3,962 | 2,635 |
Impairment of intangible assets | 67 | 0 | 0 |
Other operating (income) expense, net | (39) | 2 | 10 |
Income from operations | 2,480 | 2,378 | 1,237 |
Interest expense | 604 | 654 | 401 |
Interest expense - related party | 0 | 0 | 51 |
Loss on early extinguishment of debt | 4 | 11 | 13 |
Impairment of investments and note receivable | 102 | 0 | 0 |
Other expense (income), net | 17 | 19 | (19) |
Income before provision for income taxes | 1,753 | 1,694 | 791 |
Provision for income taxes | 428 | 440 | 202 |
Net income | 1,325 | 1,254 | 589 |
Less: Net income attributable to non-controlling interest | 0 | 0 | 3 |
Net income attributable to KDP | $ 1,325 | $ 1,254 | $ 586 |
Earnings per common share: | |||
Basic (in dollars per share) | $ 0.94 | $ 0.89 | $ 0.54 |
Diluted (in dollars per share) | $ 0.93 | $ 0.88 | $ 0.53 |
Weighted average common shares outstanding: | |||
Basic (in shares) | 1,407.2 | 1,406.7 | 1,086.3 |
Diluted (in shares) | 1,422.1 | 1,419.1 | 1,097.6 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Statement of Comprehensive Income [Abstract] | |||
Net income | $ 1,325 | $ 1,254 | $ 589 |
Foreign currency translation adjustments | (9) | 230 | (225) |
Net change in pension and post-retirement liability | (4) | 4 | (4) |
Other Comprehensive Income (Loss), Cash Flow Hedge, Gain (Loss), after Reclassification and Tax | (14) | 0 | 0 |
Other comprehensive income (loss), net of tax | (27) | 234 | (229) |
Comprehensive income | 1,298 | 1,488 | 360 |
Comprehensive income attributable to non-controlling interest | 0 | 0 | (3) |
Comprehensive income attributable to KDP | $ 1,298 | $ 1,488 | $ 357 |
Consolidated Statements of Co_2
Consolidated Statements of Comprehensive Income - Parentheticals - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Statement of Comprehensive Income [Abstract] | |||
Other Comprehensive (Income) Loss, Defined Benefit Plan, after Reclassification Adjustment, Tax | $ 1 | $ (1) | $ 0 |
Other Comprehensive Income (Loss), Cash Flow Hedge, Gain (Loss), after Reclassification, Tax | $ 1 | $ 0 | $ 0 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Millions | Dec. 31, 2020 | Dec. 31, 2019 |
Current assets: | ||
Cash and cash equivalents | $ 240 | $ 75 |
Restricted cash and restricted cash equivalents | 15 | 26 |
Trade accounts receivable, net | 1,048 | 1,115 |
Inventories | 762 | 654 |
Prepaid expenses and other current assets | 323 | 403 |
Total current assets | 2,388 | 2,273 |
Property, plant and equipment, net | 2,212 | 2,028 |
Investments in unconsolidated affiliates | 88 | 151 |
Goodwill | 20,184 | 20,172 |
Other intangible assets, net | 23,968 | 24,117 |
Other non-current assets | 894 | 748 |
Deferred tax assets | 45 | 29 |
Total assets | 49,779 | 49,518 |
Current liabilities: | ||
Accounts payable | 3,740 | 3,176 |
Accrued expenses | 1,040 | 939 |
Structured payables | 153 | 321 |
Short-term borrowings and current portion of long-term obligations | 2,345 | 1,593 |
Other current liabilities | 416 | 445 |
Total current liabilities | 7,694 | 6,474 |
Long-term obligations | 11,143 | 12,827 |
Deferred tax liabilities | 5,993 | 6,030 |
Other non-current liabilities | 1,119 | 930 |
Total liabilities | 25,949 | 26,261 |
Commitments and contingencies | ||
Stockholders' equity: | ||
Preferred Stock, Value, Issued | 0 | 0 |
Common Stock, Value, Issued | 14 | 14 |
Additional paid-in capital | 21,677 | 21,557 |
Retained earnings | 2,061 | 1,582 |
Accumulated other comprehensive income | 77 | 104 |
Total equity | 23,829 | 23,257 |
Stockholders' Equity Attributable to Noncontrolling Interest | 1 | 0 |
Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest | 23,830 | 23,257 |
Total liabilities and equity | $ 49,779 | $ 49,518 |
Preferred stock issued (in shares) | 0 | |
Common stock outstanding (in shares) | 1,407,260,676 | 1,406,852,305 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - $ / shares | Dec. 31, 2020 | Dec. 31, 2019 |
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) | 1,407,260,676 | 1,406,852,305 |
Common stock outstanding (in shares) | 1,407,260,676 | 1,406,852,305 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Operating activities: | |||
Net income | $ 1,325 | $ 1,254 | $ 589 |
Adjustments to reconcile net income to net cash provided by operating activities: | |||
Depreciation expense | 362 | 358 | 233 |
Amortization of intangibles | 133 | 126 | 121 |
Other amortization expense | 158 | 174 | 80 |
Provision for sales returns | 54 | 43 | 54 |
Deferred income taxes | (51) | (23) | (81) |
Employee stock-based compensation expense | 85 | 64 | 35 |
Loss on early extinguishment of debt | 4 | 11 | 13 |
Gain on step acquisition of unconsolidated subsidiaries | 0 | 0 | (18) |
Gain (Loss) on Disposition of Property Plant Equipment | (36) | (14) | 5 |
Foreign Currency Transaction Gain (Loss), Unrealized | (1) | (24) | 28 |
Unrealized loss on derivatives | 8 | 36 | 49 |
Equity in losses of unconsolidated affiliates | 20 | 51 | 17 |
Impairment of Intangible Assets (Excluding Goodwill) | 67 | 0 | 0 |
Equity Method Investment, Other than Temporary Impairment | 102 | 0 | 0 |
Other, net | 60 | 52 | 31 |
Changes in assets and liabilities: | |||
Trade accounts receivable | (5) | (7) | 82 |
Inventories | (107) | (24) | 185 |
Income taxes receivable and payables, net | (91) | 36 | 71 |
Other current and non current assets | (435) | (324) | (49) |
Accounts payable and accrued expenses | 624 | 583 | 206 |
Other current and non current liabilities | 180 | 102 | (38) |
Net change in operating assets and liabilities | 166 | 366 | 457 |
Net cash provided by operating activities | 2,456 | 2,474 | 1,613 |
Investing activities: | |||
Acquisitions of businesses | 0 | (8) | (19,114) |
Cash acquired in acquisitions | 0 | 0 | 169 |
Issuance of related party note receivable | (6) | (32) | (11) |
Investments in unconsolidated subsidiaries, payments | (5) | (16) | (39) |
Proceeds from capital distributions from investments in unconsolidated affiliates | 0 | 0 | 35 |
Purchases of property, plant and equipment | (461) | (330) | (180) |
Proceeds from Sale of Property, Plant, and Equipment | (203) | (247) | (3) |
Payments to Acquire Intangible Assets | 56 | 35 | 0 |
Other, net | 9 | 24 | 6 |
Net cash used in investing activities | (316) | (150) | (19,131) |
Financing activities: | |||
Proceeds from issuance of common stock | 0 | 0 | 9,000 |
Proceeds from controlling shareholder stock transactions | 29 | 0 | 0 |
Proceeds from unsecured credit facility | 1,850 | 0 | 1,900 |
Proceeds from senior unsecured notes | 1,500 | 0 | 8,000 |
Proceeds from term loan | 0 | 2,000 | 2,700 |
Net (repayment) issuance of commercial paper notes | (1,246) | 167 | 1,080 |
Proceeds from structured payables | 171 | 330 | 526 |
Payments on Structured Payables | (341) | (531) | 0 |
Repayments of Senior Debt | (250) | (250) | 0 |
Repayment of unsecured credit facility | (1,850) | 0 | (1,900) |
Repayment of term loan | (955) | (3,203) | (3,447) |
Payments on finance leases | (52) | (38) | (17) |
Cash contributions from redeemable NCI shareholders | 0 | 0 | 18 |
Cash dividends paid | (846) | (844) | (232) |
Other, net | 0 | 5 | (51) |
Net cash (used in) provided by financing activities | (1,990) | (2,364) | 17,577 |
Net change from: | |||
Operating, investing and financing activities | 150 | (40) | 59 |
Effect of exchange rate changes | (6) | 12 | (15) |
Beginning of period | 111 | 139 | 95 |
End of period | 255 | 111 | 139 |
Supplemental cash flow disclosures | |||
Acquisition of DPS | (441) | ||
Fair value of stock and replacement equity awards not converted to cash | (11) | (3,643) | |
Noncash holdback liability for acquisition of business | 54 | ||
Capital expenditures included in accounts payable and accrued expenses | 280 | 163 | 102 |
Non-cash acquisition of controlling interest | 3 | ||
Purchases of intangibles | 2 | ||
Finance lease additions | 90 | 69 | 40 |
Dividends declared but not yet paid | 212 | 211 | 211 |
Capitalization of related party debt into additional paid-in-capital | 0 | 0 | (1,815) |
Cash paid for interest | 515 | 521 | 180 |
Cash paid for related party interest | 0 | 0 | 51 |
Cash paid for income taxes | $ 582 | $ 433 | $ 210 |
Consolidated Statements of Chan
Consolidated Statements of Changes in Stockholders' Equity - USD ($) shares in Millions, $ in Millions | Total | Cumulative Effect, Period of Adoption, Adjustment | DPS [Member] | Core | Common Stock Issued | Common Stock IssuedDPS [Member] | Common Stock IssuedCore | Additional Paid-In Capital | Additional Paid-In CapitalDPS [Member] | Additional Paid-In CapitalCore | Retained Earnings | Accumulated Other Comprehensive Income (Loss) | Parent | Noncontrolling Interest |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||||||||
Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest | $ 7,398 | $ (4) | ||||||||||||
Retained Earnings (Accumulated Deficit) | (4) | |||||||||||||
Shares issued at beginning of period (in shares) at Dec. 31, 2017 | 790.5 | |||||||||||||
Total equity at beginning of period at Dec. 31, 2017 | 7,398 | (4) | $ 8 | $ 6,377 | $ 914 | $ 99 | ||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||||||||
Net income attributable to KDP | 586 | 586 | ||||||||||||
Other comprehensive income | (229) | (229) | ||||||||||||
Issuance of common stock (in shares) | 407 | |||||||||||||
Issuance of common stock | 9,000 | $ 4 | 8,996 | |||||||||||
Acquisition of Dr Pepper Snapple Group, Inc. (in shares) | 182.5 | 16.7 | ||||||||||||
Acquisition of DPS | 441 | $ 3,643 | $ 441 | $ 2 | $ 3,641 | $ 441 | ||||||||
Conversion of subsidiary shares (in shares) | 7.9 | |||||||||||||
Conversion of subsidiary shares | 172 | 172 | ||||||||||||
Capitalization of loans with related parties | 1,815 | 1,815 | ||||||||||||
Adjustment of non-controlling interests to redemption value | (16) | 16 | ||||||||||||
Reclassification of historical Maple Parent Corporation employee redeemable non-controlling interest and mezzanine equity awards | 148 | 9 | 139 | |||||||||||
Dividends declared | (441) | (441) | ||||||||||||
Stock-based compensation | 20 | 20 | ||||||||||||
Shares issued under employee stock-based compensation plans (shares) | 1.3 | |||||||||||||
Shares issued at end of period (in shares) at Dec. 31, 2018 | 1,405.9 | |||||||||||||
Total equity at end of period at Dec. 31, 2018 | 22,533 | (5) | $ 14 | 21,471 | 1,178 | (130) | ||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||||||||
Net income | 589 | |||||||||||||
Other Comprehensive Income (Loss), Net of Tax | (229) | |||||||||||||
Other Significant Noncash Transaction, Value of Consideration Given | 3,643 | |||||||||||||
Stockholders' Equity Attributable to Noncontrolling Interest | 0 | |||||||||||||
Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest | 22,533 | (5) | ||||||||||||
Retained Earnings (Accumulated Deficit) | $ (5) | |||||||||||||
Net income attributable to KDP | 1,254 | 1,254 | ||||||||||||
Other comprehensive income | 234 | 234 | ||||||||||||
Dividends declared | (845) | (845) | ||||||||||||
Stock-based compensation | 75 | 75 | ||||||||||||
Shares issued under employee stock-based compensation plans (shares) | 0.9 | |||||||||||||
Shares issued at end of period (in shares) at Dec. 31, 2019 | 1,406.8 | |||||||||||||
Total equity at end of period at Dec. 31, 2019 | 23,257 | $ 14 | 21,557 | 1,582 | 104 | |||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||||||||
Net income | 1,254 | |||||||||||||
Other Comprehensive Income (Loss), Net of Tax | 234 | |||||||||||||
Other Significant Noncash Transaction, Value of Consideration Given | $ 11 | 11 | ||||||||||||
Common Stock, Dividends, Per Share, Declared | $ 0.60 | |||||||||||||
Stockholders' Equity Attributable to Noncontrolling Interest | $ 0 | |||||||||||||
Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest | 23,257 | |||||||||||||
Retained Earnings (Accumulated Deficit) | 1,582 | |||||||||||||
Net income attributable to KDP | 1,325 | 1,325 | ||||||||||||
Other comprehensive income | (27) | (27) | ||||||||||||
Dividends declared | (846) | (846) | ||||||||||||
Adjustments to Additional Paid in Capital, Other | 29 | |||||||||||||
Non-Cash Acquisition of Controlling Interest | 4 | 3 | $ 3 | $ 1 | ||||||||||
Stock-based compensation | 88 | 88 | ||||||||||||
Shares issued under employee stock-based compensation plans (shares) | 0.5 | |||||||||||||
Shares issued at end of period (in shares) at Dec. 31, 2020 | 1,407.3 | |||||||||||||
Total equity at end of period at Dec. 31, 2020 | 23,829 | $ 14 | $ 21,677 | $ 2,061 | $ 77 | |||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||||||||
Net income | 1,325 | |||||||||||||
Other Comprehensive Income (Loss), Net of Tax | $ (27) | |||||||||||||
Common Stock, Dividends, Per Share, Declared | $ 0.60 | |||||||||||||
Stockholders' Equity Attributable to Noncontrolling Interest | $ 1 | |||||||||||||
Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest | 23,830 | |||||||||||||
Retained Earnings (Accumulated Deficit) | $ 2,061 |
Consolidated Statements of Ch_2
Consolidated Statements of Changes in Stockholders' Equity (Parentheticals) - $ / shares | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Statement of Stockholders' Equity [Abstract] | ||
Common Stock, Dividends, Per Share, Declared | $ 0.60 | $ 0.60 |
Background and Basis of Present
Background and Basis of Presentation | 12 Months Ended |
Dec. 31, 2020 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Background and Basis of Presentation | Business and Basis of Presentation ORGANIZATION AND NATURE OF OPERATIONS Keurig Dr Pepper Inc. is a leading coffee and beverage company in North America with a diverse portfolio of flavored (non-cola) CSDs, specialty coffee, and NCBs, and is a leader in single serve coffee brewers in the U.S. and Canada. References in this Annual Report on Form 10-K to "KDP" or "the Company" refer to Keurig Dr Pepper Inc. and all wholly-owned subsidiaries included in the consolidated financial statements. Definitions of terms used in this Annual Report on Form 10-K are included within the Master Glossary. This Annual Report on Form 10-K 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. Effective September 18, 2020, at market close, the Company's common stock ceased to be listed on the New York Stock Exchange and on September 21, 2020, the following business day, KDP's common stock began trading on Nasdaq's Global Select Market at market open. The Company's stock ticker remains "KDP". BASIS OF PRESENTATION For financial reporting and accounting purposes, Maple Parent Holdings Corp. was the acquirer of DPS upon completion of the DPS Merger. The consolidated financial statements as of December 31, 2020 and 2019 and for the years ended December 31, 2020, 2019 and 2018 include the results of operations of DPS subsequent to the DPS Merger, which was completed on July 9, 2018. The accompanying consolidated financial statements have been prepared in accordance with U.S. GAAP. FISCAL YEAR END KDP's fiscal year end is December 31, and its interim fiscal quarters are March 31, June 30, and September 30. KDP's significant subsidiary, Maple Parent Holdings Corp., has a fiscal year end of the last Saturday in December, and its interim fiscal quarters end every thirteenth Saturday. KDP does not adjust for the difference in fiscal year, as the difference is within the range permitted by the Exchange Act. 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 Consolidated Balance Sheets, and net earnings attributable to the non-controlling interests are presented separately in the 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 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 consolidated financial statements. RECLASSIFICATIONS For the year ended December 31, 2020, the Company made certain reclassifications in the prior period presentations of the Consolidated Statements of Cash Flows to conform to the current year presentation. Consolidated Statements of Cash Flows The following table presents the reclassifications made to the Consolidated Statements of Cash Flows: Year Ended December 31, (in millions) Prior Presentation Revised Presentation 2019 2018 Net cash provided by operating activities: (Gain) loss on disposal of property, plant and equipment Other, net (Gain) loss on disposal of property, plant and equipment $ (14) $ 5 Amortization of deferred financing fees Amortization expense Other, net 13 15 Amortization of bond fair value Amortization expense Other, net 27 13 Net cash used in financing activities: Payment of deferred financing fees Deferred financing charges paid Other, net — (55) |
Significant Accounting Policies
Significant Accounting Policies Significant Accounting Policies (Notes) | 12 Months Ended |
Dec. 31, 2020 | |
Accounting Policies [Abstract] | |
Significant Accounting Policies [Text Block] | Significant Accounting Policies USE OF ESTIMATES The process of preparing the Company's 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. SIGNIFICANT ACCOUNTING POLICIES Fair Value Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. Based upon the transparency of inputs to the valuation of an asset or liability, a three-level hierarchy has been established for fair value measurements. The three-level hierarchy for disclosure of fair value measurements is as follows: Level 1 - Quoted market prices in active markets for identical assets or liabilities. Level 2 - Observable inputs such as quoted prices for similar assets or liabilities in active markets; quoted prices for identical or similar assets or liabilities in markets that are not active; and model-derived valuations in which all significant inputs and significant value drivers are observable in active markets. Level 3 - Valuations with one or more unobservable significant inputs that reflect the reporting entity's own assumptions. The fair value of Notes and marketable securities as of December 31, 2020 and 2019 are based on quoted market prices for publicly traded securities. The Company estimates fair values of financial instruments measured at fair value in the Company’s consolidated financial statements on a recurring basis to ensure they are calculated based on market rates to settle the instruments. These values represent the estimated amounts the Company would pay or receive to terminate agreements, taking into consideration current market rates and creditworthiness. As of December 31, 2020 and 2019, the Company did not have any assets or liabilities measured on a recurring basis without observable market values that would require a high level of judgment to determine fair value (Level 3). Transfers between levels are recognized at the end of each reporting period. There were no transfers of financial instruments between the three levels of fair value hierarchy during the years ended December 31, 2020, 2019 and 2018. Business Combinations The Company includes the results of operations of the acquired business in the Company’s consolidated financial statements prospectively from the acquisition date. The Company allocates the purchase consideration to the assets acquired and liabilities assumed in the acquired entity generally based on their fair values at the acquisition date. The excess of the fair value of purchase consideration over the fair value of these assets acquired and liabilities assumed in the acquired entity is recorded as goodwill. During the measurement period, the Company will continue to obtain information to assist in determining the fair value of net assets acquired, which may differ materially from these preliminary estimates. Measurement period adjustments, if applicable, will be applied in the reporting period in which the adjustment amounts are determined. Transaction expenses are recognized separately from the business combination and are expensed as incurred. These charges primarily include direct third-party professional fees for advisory and consulting services and other incremental costs related to the acquisition. Cash and Cash Equivalents Cash and cash equivalents include cash and investments in short-term, highly liquid securities, with original maturities of three months or less. The Company is exposed to potential risks associated with its cash and cash equivalents. The Company places its cash and cash equivalents with high credit quality financial institutions. Deposits with these financial institutions may exceed the amount of insurance provided; however, these deposits typically are redeemable upon demand and, therefore, the Company believes the financial risks associated with these financial instruments are minimal. Trade Accounts Receivable and Allowance for Expected Credit Losses Trade accounts receivable are recorded at the invoiced amount and do not bear interest. The Company is exposed to potential credit risks associated with its accounts receivable, as it generally does not require collateral on its accounts receivable. The Company determines the required allowance for expected credit losses using information such as its customer credit history and financial condition, industry and market segment information, credit reports, and economic trends and conditions such as the impacts of COVID-19 in the year ended December 31, 2020. Allowances can be affected by changes in the industry, customer credit issues or customer bankruptcies or expectations of any such events in a future period when reasonable and supportable. Historical information is utilized beyond reasonable and supportable forecast periods. Amounts are charged against the allowance when it is determined that expected credit losses may occur. Activity in the allowance for expected credit loss accounts was as follows: For the Year Ended December 31, (in millions) 2020 2019 2018 Balance, beginning of the period $ 9 $ 8 $ 2 Charges to bad debt expense 17 2 5 Write-offs and adjustments (5) (1) 1 Balance, end of the period $ 21 $ 9 $ 8 The majority of the Company's customers are located in the U.S. and Canada. Concentration of credit risk with respect to accounts receivable is limited due to the large number of customers in various channels comprising the Company's customer base. Walmart is a major customer as of December 31, 2020 and 2019 as described in Note 18. As of December 31, 2020 and 2019, Walmart accounted for approximately $184 million and $152 million of trade receivables, respectively, which exceeded 10% of the Company's total trade accounts receivabl e. Inventories Inventories consist of raw materials, work in process and finished goods. Raw materials include various commodity costs for the Company's ingredients and materials sourced from various providers. The costs of finished goods inventories manufactured by the Company include raw materials, direct labor and indirect production and overhead costs. Finished goods also include the purchases of brewing systems from third-party manufacturers and beverages from partner brands. Inventories are stated at the lower of cost or net realizable value. Cost is measured using standard cost method which approximates first-in, first-out. The Company regularly reviews whether the net realizable value of its inventory is lower than its carrying value. If the valuation shows that the net realizable value is lower than the carrying value, the Company takes a charge to cost of sales and directly reduces the carrying value of the inventory. The Company estimates any required write downs for inventory obsolescence by examining its inventories on a quarterly basis to determine if there are indicators that the carrying values exceed net realizable value. Indicators that could result in additional inventory write downs include age of inventory, damaged inventory, slow moving products and products at the end of their life cycles. While management believes that inventory is appropriately stated, judgment is involved in determining the net realizable value of inventory. Adjustments for excess and obsolete inventories are based on an assessment of slow-moving and obsolete inventories, determined by historical usage and demand. Property, Plant and Equipment, Net Property, plant and equipment is stated at cost plus capitalized interest on borrowings during the actual construction period of major capital projects, net of accumulated depreciation. Significant improvements which substantially extend the useful lives of assets are capitalized and expenditures for repairs and maintenance which do not improve or extend the life of the assets are expensed as incurred. The Company capitalizes certain computer software and software development costs incurred in connection with developing or obtaining computer software for internal use, which are included in property, plant and equipment. When property, plant and equipment is sold, the costs and the related accumulated depreciation are removed from the accounts, and any net gain or loss is recorded in Other operating (income) expense, net in the Consolidated Statements of Income. For financial reporting purposes, depreciation is computed on the straight-line method over the estimated useful asset lives as follows: Type of Asset Useful Life Buildings and improvements 3 to 40 years Machinery and equipment 2 to 20 years Cold drink equipment 2 to 7 years Computer software 2 to 8 years Leasehold improvements, which are primarily considered building improvements, are depreciated over the shorter of the estimated useful life of the assets or the lease term. Estimated useful lives are periodically reviewed and, when warranted, are updated. The Company periodically reviews long-lived assets for impairment whenever events or changes in circumstances indicate that their carrying amount may not be recoverable. In order to assess recoverability, the Company compares the estimated undiscounted future pre-tax cash flows from the use of the group of assets, as defined, to the carrying amount of such assets. Measurement of an impairment loss is based on the excess of the carrying amount of the group of assets over the long-lived asset's fair value. For the years ended December 31, 2020 and 2019, the Company recorded an impairment loss of $1 million and $24 million, respectively and no impairment loss for the year ended December 31, 2018. Impairment loss is recorded in Other expense (income), net, net in the Consolidated Statements of Income. 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 us 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 certain manufacturing properties that contain a residual value guarantee at the end of the term. Operating leases are included within other non-current assets, other current liabilities, and other non-current liabilities within our Consolidated Balance Sheets. Finance leases are included within Property, plant and equipment, net, other current liabilities, and other non-current liabilities. Leases with an initial term of 12 months or less are not recognized on the Consolidated Balance Sheets. Right of use assets and lease liabilities are recognized in the Consolidated Balance Sheets at the present value of future minimum lease payments over the lease term on the commencement date. When the rate implicit in the lease is not provided to the Company, KDP will use its incremental borrowing rate based on information available at the commencement date to determine the present value of future minimum lease payments. KDP's incremental borrowing rate is determined using a portfolio of secured borrowing rates commensurate with the term of the lease and is reassessed on a quarterly basis. KDP has lease agreements with lease and non-lease components, which are generally accounted for as a single lease component. Sale-and-leaseback transactions occur when the Company sells assets to a third-party and subsequently leases them back. The resulting leases that qualify for sale-and-leaseback accounting are evaluated and accounted for as an operating lease. A transaction that does not qualify for sale-and-leaseback accounting as a result of finance lease classification or the failure to meet certain revenue recognition criteria is accounted for as a financing transaction. For a financing transaction, the Company will retain the assets sold within Property, plant and equipment, net and record a financing obligation equal to the amount of cash proceeds received. Rental payments under such transactions are recognized as a reduction of the financing obligation and as interest expense using an effective interest method. Investments Deferred Compensation Plan The Company has a U.S. non-qualified defined contribution plan. Employee and employer matching contributions under the non-qualified defined contribution plan are maintained in a rabbi trust and are not readily available to us. The rabbi trust consists of readily marketable equity securities, which are included in Other non-current assets in the Consolidated Balance Sheets. Gains or losses from such investments are classified as trading and are charged to Other expense (income), net in the Consolidated Statements of Income. The corresponding deferred compensation liability is included in Other non-current liabilities in the Consolidated Balance Sheets, with changes in this obligation recognized as adjustments to compensation expense and recorded in SG&A expenses. Investments in Other Equity Securities 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 Consolidated Balance Sheets, and net earnings attributable to the non-controlling interests are presented separately in the Consolidated Statements of Income. The Company also holds non-controlling investments in certain privately held entities which are accounted for as equity method investments or equity securities without readily determinable value. The companies over which we exert significant influence, but do not control the financial and operating decisions, are accounted for as equity method investments. The Company's equity method investments are reported at cost and adjusted each period for the Company’s share of the investee’s net income (loss) and dividends paid, if any. The Company's proportionate share of the net income (loss) resulting from these investments is recorded in Other expense (income), net in the Consolidated Statements of Income. Any gains and losses resulting from the sale of these investments are recorded in Other expense (income), net. The carrying value of the Company's equity method investments is reported in Investments in unconsolidated affiliates in the Company's Consolidated Balance Sheets. The Company classifies distributions received from equity-method investments using the cumulative earnings approach on the Consolidated Statements of Cash Flows. Other investments that are not controlled, and over which we do not have the ability to exercise significant influence, are accounted for as equity securities without readily determinable value at cost and reported in Other non-current assets in the Company's Consolidated Balance Sheets. Any gains or losses resulting from the sales of these investments are recorded in Other operating (income) expense, net, in the Consolidated Statements of Income. The Company's non-controlling investments in certain privately held entities do not have readily determinable fair values and are periodically evaluated for impairment. An impairment loss would be recorded whenever a decline in value of an investment below its carrying amount is determined to be other than temporary. Goodwill and Other Intangible Assets The Company classifies other intangible assets into two categories: • intangible assets with definite lives subject to amortization, and • intangible assets with indefinite lives not subject to amortization. The majority of the Company 's intangible asset balance is made up of brands which the Company has determined to have indefinite useful lives. In arriving at the conclusion that a brand has an indefinite useful life, management reviews factors such as size, diversification and market share of each brand. Management expects to acquire, hold and support brands for an indefinite period through consumer marketing and promotional support. The Company also considers factors such as its ability to continue to protect the legal rights that arise from these intangible assets indefinitely or the absence of any regulatory, economic or competitive factors that could truncate the life of these intangible assets. If the criteria are not met to assign an indefinite life, the brand is amortized over its expected useful life. Identifiable intangible assets deemed by the Company to have determinable finite useful lives are amortized on a straight-line basis over the period of which the expected economic benefit is derived. The estimated useful lives of the Company's intangible assets with definite lives are as follows: Type of Asset Useful Life Acquired technology 20 years Customer relationships 8 to 40 years Trade names 10 years Distribution rights 3 to 10 years Brands 5 years Contractual arrangements 10 to 12 years For intangible assets with definite lives, tests for impairment are performed if conditions exist that indicate the carrying value may not be recoverable. For goodwill and indefinite-lived intangible assets, the Company conducts tests for impairment annually on the first day of the fourth quarter, or more frequently if events or circumstances indicate the carrying amount may not be recoverable. The tests for impairment include significant judgment in estimating the fair value of reporting units and intangible assets. Management's estimates of fair value, which fall under Level 3 and are non-recurring, are based on historical and forecasted revenues and profit performance and discount rates. Fair value is based on what the reporting units and intangible assets would be worth to a third party market participant. Discount rates are based on a weighted average cost of equity and cost of debt, adjusted with various risk premiums. Goodwill is assigned to reporting units for purposes of impairment testing. A reporting unit is the same as an operating segment or one level below an operating segment. KDP's six reporting units are as follows: Segments Reporting Units Packaged Beverages DSD WD Coffee Systems Coffee Systems US Coffee Systems Canada Beverage Concentrates Beverage Concentrates Latin America Beverages Latin America Beverages If the carrying value of the reporting unit or intangible asset exceeds its fair value, an impairment charge will be recorded in current earnings for the difference up to the carrying value of the goodwill or intangible asset recorded. Refer to Note 4 for additional information. Capitalized Customer Incentive Programs The Company provides support to certain customers to cover various programs and initiatives to increase net sales, including contributions to customers or vendors for cold drink equipment used to market and sell the Company 's products. These programs and initiatives generally directly benefit the Company over a period of time. Accordingly, costs of these programs and initiatives are recorded in Prepaid expenses and other current assets and Other non-current assets in the Consolidated Balance Sheets. Refer to Note 15 for additional information. The costs for these programs are amortized over the period to be directly benefited based upon a methodology consistent with the Company 's contractual rights under these arrangements. Structured Payables The Company entered into an agreement with a supply chain payment processing intermediary, for the intermediary to act as a virtual credit card sponsor, whereby the card sponsor will pay amounts on behalf of the Company and sell the amounts due from the Company to a participating financial institution. The card sponsor will then bill the Company the original payment amount. The agreement permits the Company to utilize the third party and participating financial institutions to make a broad range of payments, including commercial payables to suppliers, business acquisitions, purchases of property, plant and equipment, and employee-related payments. Structured payables have equal priority with accounts payable and are treated as non-recourse obligations. The Company records interest for the period the structured payables obligation is outstanding and reflects the proceeds and payments related to these transactions as a financing activity on the Consolidated Statements of Cash Flows. Pension and Post-retirement Medical Benefits The Company has U.S. and foreign pension and PRMB plans which provide benefits to a defined group of employees who satisfy age and length of service requirements at the discretion of the Company. As of December 31, 2020, the Company has several stand-alone non-contributory defined benefit plans and PRMB plans. Depending on the plan, pension and PRMB benefits are based on a combination of factors, which may include salary, age and years of service. Employee pension and PRMB plan obligations and the associated expense included in the consolidated financial statements are determined from actuarial analyses based on plan assumptions, employee demographic data, years of service, compensation, benefits and claims paid and employer contributions. Non-cash settlement charges occur when the total amount of lump sum payments made to participants of various U.S. defined pension plans exceed the estimated annual interest and service costs. The components of net periodic benefit cost other than the service cost component are included in Other expense (income), net, in the Company's Consolidated Statements of Income. The service cost component is included in either Cost of sales or SG&A expenses, depending on the classification of the employee's other compensation costs. The Company's objective with respect to the funding of its pension plans is to provide adequate assets for the payment of future benefits. Pursuant to this objective, the Company will fund the pension plans as required by governmental regulations and may consider discretionary contributions as conditions warrant. The Company participates in three multi-employer pension plans and makes contributions to those plans, which are recorded in either Cost of sales or SG&A expenses, depending on the classification of the employee's other compensation costs. Voluntary Prepayment of Term Loans The Company has the ability to voluntarily prepay its senior unsecured term loan facilities in whole or in part with prior notice to JPMorgan. The prepayment of the senior unsecured term loan facilities does not result in any additional fees or penalties, just the payment of daily accrued interest at the agreed upon rate. As the Company periodically prepays its senior unsecured term loan facilities, the Company has presented these voluntary prepayments as an early extinguishment of debt and expense the proportionate amount of unamortized deferred financing costs, as the loan has been partially settled. Risk Management Programs The Company retains selected levels of property, casualty, workers' compensation, health, cyber and other business risks. Many of these risks are covered under conventional insurance programs with deductibles or self-insured retentions. Accrued liabilities related to the retained casualty and health risks are calculated based on loss experience and development factors, which contemplate a number of variables including claim history and expected trends, and are recorded in Other current liabilities and Other non-current liabilities in the Consolidated Balance Sheets . Income Taxes Income taxes are accounted for using the asset and liability approach, which involves determining the temporary differences between assets and liabilities recognized for financial reporting and the corresponding amounts recognized for tax purposes and computing the tax-related carryforwards at the enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be reversed. The resulting amounts are deferred tax assets or liabilities. The total of taxes currently payable per the tax return, the deferred tax expense or benefit and the impact of uncertain tax positions represents the income tax expense or benefit for the year for financial reporting purposes. The Company periodically assesses the likelihood of realizing its deferred tax assets based on the amount that the Company believes is more likely than not to be realized. The Company bases its judgment of the recoverability of its deferred tax assets primarily on historical earnings, its estimate of current and expected future earnings and prudent and feasible tax planning strategies. The Company establishes income tax liabilities to remove some or all of the income tax benefit of any of the Company's income tax positions at the time the Company determines that the positions become uncertain based upon one of the following: (1) the tax position is not "more likely than not" to be sustained, (2) the tax position is "more likely than not" to be sustained, but for a lesser amount, or (3) the tax position is "more likely than not" to be sustained, but not in the financial period in which the tax position was originally taken. The Company's evaluation of whether or not a tax position is uncertain is based on the following: (1) the Company presumes the tax position will be examined by the relevant taxing authority such as the IRS that has full knowledge of all relevant information, (2) the technical merits of a tax position are derived from authorities such as legislation and statutes, legislative intent, regulations, rulings and case law and their applicability to the facts and circumstances of the tax position, and (3) each tax position is evaluated without considerations of the possibility of offset or aggregation with other tax positions taken. The Company adjusts these income tax liabilities when the Company's judgment changes as a result of new information. Any change will impact income tax expense in the period in which such determination is made. Derivative Instruments 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. The Company records all derivative instruments on a gross basis, including those subject to master netting arrangements. 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. Loss Contingencies Legal Matters The Company is involved from time to time in various claims, proceedings, and litigation, including those described in Note 16. The Company establishes reserves for specific legal proceedings when it determines that the likelihood of an unfavorable outcome is probable and the amount of loss can be reasonably estimated. Management has also identified certain other legal matters where it believes an unfavorable outcome is reasonably possible and/or for which no estimate of possible losses can be made, and where applicable, the Company provides disclosure of such legal matters in Note 16. Product Warranties The Company provides for the estimated cost of product warranties associated with its brewers in cost of sales, at the time product revenue is recognized. Warranty costs are estimated primarily using historical warranty information in conjunction with current engineering assessments applied to the Company's expected repair or replacement costs. The estimate for warranties requires assumptions relating to expected warranty claims which are based on the Company's historical claims and known current year factors. Revenue Recognition The Company recognizes revenue when performance obligations under the terms of a contract with the customer are satisfied. Branded product sales, which include CSDs, NCBs, K-Cup pods, appliances and other, 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. These incentives and discounts include cash discounts, price allowances, volume-based rebates, product placement fees and other financial support for items such as trade promotions, displays, new products, consumer incentives and advertising assistance. Accruals are established for the expected payout based on contractual terms, volume-based metrics and/or historical trends and require management judgment with respect to estimating customer participation and performance levels. 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. Cost of Sales Cost of goods sold includes all costs to acquire and manufacture the Company's products including raw materials, direct and indirect labor, manufacturing overhead, including depreciation expense, and all other costs incurred to bring the product to salable condition. All other costs incurred after this condition is met are considered selling costs and included in SG&A expenses. Transportation and Warehousing Costs The Company incurred $1,326 million, $1,181 million and $695 million of transportation and warehousing costs during the years ended December 31, 2020, 2019 and 2018, respectively. These amounts, which primarily relate to shipping and handling costs, are recorded in SG&A expenses in the Consolidated Statements of Income. Advertising and Marketing Expense Advertising and marketing production costs related to television, print, radio and other marketing investments are expensed as of the first date the advertisement takes place. All other advertising and marketing costs are expensed as incurred. Advertising and marketing expenses were approximately $489 million, $670 million and $411 million for the years ended December 31, 2020, 2019 and 2018, respectively. Advertising and marketing expenses are recorded in SG&A expenses in the Consolidated Statements of Income. Prepaid advertising and marketing costs are recorded as Other current and Other non-current assets in the Consolidated Balance Sheets. Research and Development Costs Research and develop |
Long-term Obligations and Borro
Long-term Obligations and Borrowing Arrangements | 12 Months Ended |
Dec. 31, 2020 | |
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: December 31, (in millions) 2020 2019 Senior unsecured notes $ 13,065 $ 11,802 Term loans 423 1,372 Subtotal 13,488 13,174 Less - current portion (2,345) (347) Long-term obligations $ 11,143 $ 12,827 The following table summarizes the Company's short-term borrowings and current portion of long-term obligations: December 31, (in millions) 2020 2019 Commercial paper notes $ — $ 1,246 Current portion of long-term obligations: Senior unsecured notes 2,246 250 Term loans 99 97 Short-term borrowings and current portion of long-term obligations $ 2,345 $ 1,593 SENIOR UNSECURED NOTES The Company's Notes consisted of the following: (in millions) December 31, Issuance Maturity Date Rate 2020 2019 2020 Notes (1) January 15, 2020 2.000% — 250 2021 Merger Notes May 25, 2021 3.551% 1,750 1,750 2021-A Notes November 15, 2021 3.200% 250 250 2021-B Notes November 15, 2021 2.530% 250 250 2022 Notes November 15, 2022 2.700% 250 250 2023 Merger Notes May 25, 2023 4.057% 2,000 2,000 2023 Notes December 15, 2023 3.130% 500 500 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 (2) May 1, 2030 3.200% 750 — 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 (2) May 1, 2050 3.800% 750 — Principal amount $ 13,225 $ 11,975 Adjustment from principal amount to carrying amount (3) (160) (173) Carrying amount $ 13,065 $ 11,802 (1) On January 15, 2020, the Company repaid the 2020 Notes at maturity, using commercial paper borrowings. (2) On April 13, 2020, the Company completed the issuance of $1.5 billion aggregate principal amount of senior unsecured notes consisting of $750 million aggregate principal amount of 3.200% senior unsecured notes due May 1, 2030 and $750 million aggregate principal amount of 3.800% senior unsecured notes due May 1, 2050. The discount associated with the 2030 Notes and the 2050 Notes was approximately $6 million. The net proceeds from the issuance were used to repay outstanding borrowings under the KDP Revolver. (3) The carrying amount includes unamortized discounts, debt issuance costs and fair value adjustments related to the DPS Merger. The indentures governing the Notes, among other things, contain customary default provisions and limit the Company's ability to incur indebtedness secured by principal properties, to enter into certain sale and leaseback transactions and to enter into certain mergers or transfers of substantially all of the Company's assets. The Notes are fully and unconditionally guaranteed by certain direct and indirect subsidiaries of the Company. As of December 31, 2020, the Company was in compliance with all financial covenant requirements of the Notes. BORROWING ARRANGEMENTS Financial Information Related to KDP Credit Agreements The KDP Credit Agreements consisted of the following: December 31, (in millions) 2020 2019 Issuance Maturity Date Available Balances Carrying Value Carrying Value 2019 KDP Term Loan (1) February 2023 — 425 1,380 KDP Revolver (2) February 2023 2,400 — — 2020 364-Day Credit Agreement May 2021 1,500 — — Principal amount $ 425 $ 1,380 Unamortized debt issuance costs (2) (8) Carrying amount $ 423 $ 1,372 (1) During the year ended December 31, 2020, the Company prepaid $955 million of its outstanding obligations, of which $855 million were voluntary prepayments, under the 2019 KDP Term Loan using a combination of commercial paper and cash on hand. As a result of the voluntary prepayments, the Company recorded a $4 million loss on early extinguishment during the year ended December 31, 2020. (2) The KDP Revolver has $200 million letters of credit available, none of which were utilized as of December 31, 2020. The KDP Credit Agreements contain customary representations and warranties for investment grade financings. The KDP Credit Agreements also contain (i) certain customary affirmative covenants, including those that impose certain reporting and/or performance obligations on KDP and its subsidiaries, (ii) certain customary negative covenants that generally limit, subject to various exceptions, KDP and its subsidiaries from taking certain actions, including, without limitation, incurring liens, consummating certain fundamental changes and entering into transactions with affiliates, (iii) a financial covenant in the form of a total net leverage ratio and (iv) customary events of default (including a change of control) for financings of this type. As of December 31, 2020, the Company was in compliance with all financial covenant requirements relating to the KDP Credit Agreements. Term Loan Agreements On February 8, 2019, the Company terminated its 2018 KDP Term Loan and refinanced it with the $2 billion 2019 KDP Term Loan, in order to achieve a more favorable interest rate. As a result of the extinguishment of the 2018 KDP Term Loan, the Company recorded approximately $3 million of loss on early extinguishment during the year ended December 31, 2019. The interest rate applicable to the 2019 KDP Term Loan ranges from a rate equal to LIBOR plus a margin of 0.75% to 1.25% or a base rate plus a margin of 0.00% to 0.25%, depending on the rating of certain indexed debt of KDP. The 2019 KDP Term Loan requires KDP to make quarterly payments on the unpaid principal amount in an amount equal to 1.25% of the aggregate principal amount made on the effective date of the 2019 KDP Term Loan, resulting in annual mandatory repayments of $100 million. The 2019 KDP Term Loan matures on February 8, 2023. 364-Day Credit Agreements The Company entered into the 2019 364-Day Credit Agreement on May 29, 2019 among the Company, the banks party thereto and JPMorgan as administrative agent, pursuant to which the Company obtained a $750 million commitment. The interest rate applicable to borrowings under the 2019 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 2019 364-Day Credit Agreement had an original maturity date of May 27, 2020. On April 14, 2020, the Company terminated the 2019 364-Day Credit Agreement and executed the 2020 364-Day Credit Agreement in order to increase the commitment from $750 million to $1.5 billion. The 2020 364-Day Credit Agreement is unsecured, and its proceeds may be used for general corporate purposes. The interest rate applicable to borrowings under the 2020 364-Day Credit Agreement ranges from a rate equal to LIBOR plus a margin of 2.250% to 2.750% or a base rate plus a margin of 1.250% to 1.750%, depending on the rating of certain index debt of the Company. The 2020 364-Day Credit Agreement will mature on April 13, 2021. KDP Revolving Credit Facility The interest rate applicable to any borrowings under the KDP Revolver ranges from a rate equal to LIBOR plus a margin of 0.875% to 1.500% or a base rate plus a margin of 0.00% to 0.50%, depending on the rating of certain indexed debt of KDP. Under the KDP Revolver, KDP will pay the Revolving Lenders an unused commitment fee calculated at a rate per annum equal to an amount between 0.07% and 0.20%, depending on the rating of certain indexed debt of KDP. The KDP Revolver will mature on February 28, 2023. Commercial Paper Program DPS initially executed its commercial paper program on December 10, 2010. On July 9, 2018, the Company amended its commercial paper program, under which the Company may issue unsecured commercial paper notes on a private placement basis up to a maximum aggregate amount outstanding at any time of $2,400 million. The maturities of the commercial paper notes will vary, but may not exceed 397 days from the date of issuance. The Company's intent is to classify the commercial paper notes on a short term basis, as maturities are not expected to exceed 90 days. The Company issues commercial paper notes as needed for general corporate purposes. Outstanding commercial paper notes rank equally with all of the commercial paper notes' existing and future unsecured borrowings. The Company had no outstanding commercial paper notes as of December 31, 2020 and $1,246 million as of December 31, 2019. The following table provides information about the Company's weighted average borrowings under its commercial paper program: For the Year Ended December 31, (in millions, except %) 2020 2019 2018 (1) Weighted average commercial paper borrowings $ 789 $ 1,754 $ 1,309 Weighted average borrowing rates 1.24 % 2.56 % 2.53 % (1) The Company assumed the commercial paper program as a result of the DPS Merger on July 9, 2018. As a result, weighted average commercial paper borrowings and weighted average borrowing rates are weighted from the assumption of the commercial paper program on July 9, 2018 through December 31, 2018. Letters of Credit Facility In addition to the portion of the KDP Revolver reserved for issuance of letters of credit, the Company has an incremental letters of credit facility. Under this facility, $100 million is available for the issuance of letters of credit, $50 million of which was utilized as of December 31, 2020 and $50 million of which remains available for use. FAIR VALUE DISCLOSURES The fair values of each of the Company's commercial paper notes and the 2019 KDP Term Loan approximate the carrying value and are considered Level 2 within the fair value hierarchy. |
Goodwill and Other Intangible A
Goodwill and Other Intangible Assets | 12 Months Ended |
Dec. 31, 2020 | |
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 for the years ended December 31, 2020 and 2019 are as follows: Coffee Systems Packaged Beverages Beverage Concentrates Latin America Beverages Corporate Unallocated Total Balance as of December 31, 2018 $ 9,725 $ 4,878 $ 4,265 $ 618 $ 525 $ 20,011 Foreign currency translation 47 32 19 25 — 123 Acquisitions (1) 3 391 242 (73) (525) 38 Balance as of December 31, 2019 9,775 5,301 4,526 570 — 20,172 Foreign currency translation 20 13 10 (31) — 12 Balance as of December 31, 2020 $ 9,795 $ 5,314 $ 4,536 $ 539 $ — $ 20,184 (1) Amounts primarily represent the goodwill and measurement period adjustments recorded as a result of the DPS Merger, the Big Red Acquisition, and the Core Acquisition. INTANGIBLE ASSETS OTHER THAN GOODWILL The net carrying amounts of intangible assets other than goodwill with indefinite lives are as follows: December 31, 2020 December 31, 2019 Brands (1) $ 19,874 $ 19,948 Trade names 2,480 2,479 Contractual arrangements 123 122 Distribution rights (2) 57 16 Total $ 22,534 $ 22,565 (1) The decrease in brands with indefinite lives was due to $67 million impairment of the Bai brand, as well as a decrease of $7 million due to foreign currency translation during the year ended December 31, 2020. Refer to Impairment Analysis below for further details about the impairment of Bai. (2) The Company executed nine agreements to acquire distribution rights during the year ended December 31, 2020, which resulted in an increase of $41 million. This increase was partially offset by foreign currency translation. The net carrying amounts of intangible assets other than goodwill with definite lives are as follows: December 31, 2020 December 31, 2019 (in millions) Gross Amount Accumulated Amortization Net Amount Gross Amount Accumulated Amortization Net Amount Acquired technology $ 1,146 $ (328) $ 818 $ 1,146 $ (255) $ 891 Customer relationships 638 (135) 503 638 (102) 536 Trade names 127 (69) 58 128 (55) 73 Distribution rights 26 (6) 20 24 (1) 23 Contractual arrangements 24 (5) 19 24 (3) 21 Brands 21 (5) 16 10 (2) 8 Total $ 1,982 $ (548) $ 1,434 $ 1,970 $ (418) $ 1,552 Amortization expense for intangible assets with definite lives was as follows: Year Ended December 31, (in millions) 2020 2019 2018 Amortization expense for intangible assets with definite lives $ 133 $ 126 $ 121 Amortization expense of these intangible assets is expected to be as follows: For the Years Ending December 31, (in millions) 2021 2022 2023 2024 2025 Expected amortization expense for intangible assets with definite lives $ 133 $ 133 $ 132 $ 123 $ 111 IMPAIRMENT ANALYSIS For both goodwill and other indefinite lived intangible assets, KDP has the option to first assess qualitative factors to determine whether the fair value of either the reporting unit or indefinite lived intangible asset is not "more likely than not" less than its carrying value, also known as a Step 0 analysis. For the year ended December 31, 2020, KDP performed a quantitative analysis, using the income approach, or in some cases a combination of income and market based approaches, to determine the fair value of the Company's assets, as well as an overall consideration of market capitalization and enterprise value. For the year ended December 31, 2019, KDP performed a quantitative analysis using an income based approach to determine fair value. For the year ended December 31, 2018, KDP performed a Step 0 analysis on the legacy DPS assets concluding that no further analysis was required and a quantitative step 1 analysis on the legacy Keurig assets using an income based approach to determine the fair value. The following table provides the range of rates used in the analysis as of October 1, 2020, 2019, and 2018: 2020 2019 2018 Rate Minimum Maximum Minimum Maximum Minimum Maximum Discount rates 6.0 % 10.0 % 7.3 % 13.0 % 8.5 % 9.5 % Long-term growth rates — % 3.5 % — % 2.5 % 0.9 % 2.4 % Royalty rates 1.0 % 10.0 % 1.0 % 10.0 % 1.0 % 7.0 % During the year ended December 31, 2020, the Company recorded an impairment of $67 million for Bai, an indefinite lived brand asset. No other impairment of goodwill or indefinite lived intangible assets was identified during the year ended December 31, 2020, and no impairment was identified in each of the years ended December 31, 2019 and 2018. The factors that led to the Bai brand impairment determination were primarily performance of the brand during the COVID-19 pandemic, related shifts in consumer behaviors that are expected to be other-than-temporary, and updated forecasts of brand performance based on a refined strategic vision to market and sell the product. The results of the impairment analysis of the Company's indefinite lived brands and trade names as of October 1, 2020, 2019, and 2018 are as follows: 2020 2019 2018 Headroom Percentage Carrying Value Fair Value Carrying Value Fair Value Carrying Value Fair Value (1) Brands Impairment (2) $ 482 $ 415 $ — $ — $ — $ — 0 - 25% 5,052 5,775 6,356 7,251 19,555 19,555 26 - 50% 2,261 2,993 12,319 17,303 — — In excess of 50% 11,946 19,835 1,188 1,988 — — $ 19,741 $ 29,018 $ 19,863 $ 26,542 $ 19,555 $ 19,555 Trade Names Impairment $ — $ — $ — $ — $ — $ — 0 - 25% 1 1 — — — — 26 - 50% — — — — — — In excess of 50% 2,479 6,990 2,479 6,650 2,479 4,600 $ 2,480 $ 6,991 $ 2,479 $ 6,650 $ 2,479 $ 4,600 (1) Due to the timing of the DPS Merger, the Company performed as a step 0 analysis on the indefinite lived brands as of October 1, 2018, which resulted in carrying value approximating fair value. (2) The impairment line represents the carrying value and fair value of Bai as of the October 1, 2020 measurement date, prior to the $67 million impairment recorded during the fourth quarter of 2020. |
Acquisitions and Investments in
Acquisitions and Investments in Unconsolidated Subsidiaries | 12 Months Ended |
Dec. 31, 2020 | |
Business Combinations [Abstract] | |
Acquisitions and Investments in Unconsolidated Subsidiaries | 2020 ACQUISITIONS On July 31, 2020, the Company closed on a stock purchase agreement to obtain a 66.4% ownership interest in Revive from Peet's for cash consideration of $1, with Peet's retaining a minority ownership interest. Revive is an organic, non-alcoholic kombucha brand, available in both traditional refrigerated and shelf-stable varieties. The transaction is considered a common control transaction due to KDP's relationship with Peet's through certain affiliates of JAB. The investment was accounted for as an acquisition of a controlling interest, and in accordance with the requirements of U.S. GAAP for common control transactions, KDP recognized all of Revive's assets and liabilities at their carrying values as of July 31, 2020, with the $3 million difference between the Company's ownership interest in the net assets and the purchase price recorded to additional paid-in capital. Refer to Note 1 for the Company's accounting policies with respect to the consolidation of Revive and accounting for the non-controlling interest. 2019 ACQUISITIONS The Company spent an aggregate of $8 million in connection with immaterial acquisitions during the year ended December 31, 2019, which resulted in the recognition of fixed assets, intangible assets and goodwill. 2018 ACQUISITIONS For the acquisitions in the year ended December 31, 2018, the Company used consistent valuation approaches in order to derive the fair value of assets acquired. The Company valued personal property using a combination of the market approach and the cost approach, which is based upon current replacement or reproduction cost of the asset as newly adjusted for any depreciation attributable to physical, functional and economic factors. The Company valued real property using the cost approach and land using the sales comparison approach. The Company used existing carrying values to value trade receivables and payables, as well as certain other current and non-current assets and liabilities, as the Company determined that they represented the fair value of those items. The Company valued WIP and finished goods inventory using a net realizable value approach and raw materials were valued at net book value. The brand portfolios were valued utilizing the multi-period excess earnings method, a form of the income approach. Contractual arrangements with bottlers and distributors and retail and food service customer relationships were valued utilizing the distributor method, a form of the income approach. Acquisition of DPS Overview and Total Consideration Exchanged Maple Parent Holdings Corp. merged with DPS on July 9, 2018. DPS is a leading integrated brand owner, manufacturer and distributor of non-alcoholic beverages in the U.S., Canada and Mexico with a diverse portfolio of flavored (non-cola) CSDs and NCBs, including ready-to-drink teas, juices, juice drinks, water and mixers. The DPS Merger was accounted for as a reverse merger under the acquisition method of accounting for business combinations. Maple Parent Holdings Corp. was considered to be the accounting acquirer, and DPS was considered the legal acquirer. Under the acquisition method of accounting, total consideration exchanged was: (in millions) Aggregate fair value of DPS common stock $ 3,611 $103.75 per share special cash dividend (1) 18,818 Fair value of replacement equity awards (2) 53 Total consideration exchanged $ 22,482 (1) As a result of the DPS Merger, all DPS stock option awards, RSUs and PSUs which were unvested prior to the DPS Merger vested immediately as a result of the Change in Control (as defined in the terms of each individual award agreement). All such awards, except for the stock option awards and certain RSUs not yet released to the employee, received the special cash dividend of $103.75 per share, subject to any withholding of taxes required by law. These amounts were included within the special cash dividend. (2) The fair value of replacement equity awards includes the Company issued replacement stock option awards for DPS stock option awards that were fully vested as of July 9, 2018 but not yet exercised by the employee, the DPS stock option awards that were fully vested as of July 9, 2018 and converted to cash by the employee and certain RSUs not yet released to the employee as a result of certain IRS requirements. The total consideration exchanged in the DPS Merger was funded by the following sources of funds: • A $9,000 million equity investment from JAB. • The issuance by the Company of $8,000 million of senior unsecured notes. • Proceeds of $2,700 million borrowed under the 2018 KDP Term Loan and proceeds of $1,900 million borrowed under the KDP Revolver. Refer to Note 3 for additional information. • Proceeds of $124 million from the Company's structured payables. • The remainder of the total consideration exchanged in the DPS Merger was funded by cash on hand. Allocation of Consideration Exchanged The Company's allocation of consideration exchanged to the net tangible and intangible assets acquired and liabilities assumed in the DPS Merger is based on estimated fair values as of the DPS Merger Date, and was finalized on July 9, 2019. The following is a summary of the allocation of consideration exchanged to the estimated fair values of assets acquired and liabilities assumed in the DPS Merger: (in millions) Purchase Price Allocation Estimated Useful Life Cash and cash equivalents $ 147 Investments in unconsolidated subsidiaries 90 Property, plant and equipment 1,475 1 year - 41 years Other intangible assets Brands 19,556 n/a Contractual arrangements 127 n/a Customer relationships 390 10 years - 40 years Favorable leases 5 5 years - 12 years Long-term obligations (4,049) Capital lease and financing obligations (205) Acquired assets, net of assumed liabilities (1) 81 Deferred tax liabilities, net of deferred tax assets (2) (5,041) Goodwill (3) 9,906 Total consideration exchanged 22,482 Fair value of stock and replacement equity awards not converted to cash 3,643 Acquisition of business $ 18,839 (1) The Company valued WIP and finished goods inventory resulting in a step-up of $131 million which was recognized in the cost of goods sold for the year ended December 31, 2018 as the related inventory was sold during that period. (2) Net deferred tax liabilities represented the expected future tax consequences of temporary differences between the fair values of the assets acquired and liabilities assumed and their tax bases. (3) The goodwill recognized is attributable to operational and general and administrative cost synergies resulting from the warehouse and transportation integration, direct procurement savings on overlapping materials, purchasing scale on indirect spend categories and optimization of duplicate positions and processes. The Company may also recognize revenue synergies, driven by a strong portfolio of brands with exposure to higher growth segments and the ability to leverage the Company's collective distribution strength. The goodwill created in the DPS Merger is not deductible for tax purposes. Acquisition of Big Red Overview and Purchase Price On August 31, 2018, the Company closed the Big Red Acquisition for a cash purchase price of $300 million, with proceeds from structured payables. In order to complete the Big Red Acquisition, the Company paid $282 million, net of the Company's previous ownership interest, in exchange for the remaining ownership interests and seller transaction costs. Additionally, $15 million was held back and placed in escrow. As a result of the Big Red Acquisition, the Company's existing 14.36% equity interest in Big Red, which was previously earned based on the Company's distribution of Big Red's products and valued at $16 million during the DPS Merger purchase price allocation, was remeasured to fair value of $22 million. The gain of $6 million was recorded in Other operating (income) expense, net during the year ended December 31, 2018. Allocation of Consideration Exchanged The Company's allocation of consideration exchanged to the net tangible and intangible assets acquired and liabilities assumed in the Big Red Acquisition is based on estimated fair values as of August 31, 2018 and was finalized on August 31, 2019. The following is a summary of the allocation of consideration exchanged to the estimated fair values of assets acquired and liabilities assumed in the Big Red Acquisition: (in millions) Purchase Price Allocation Estimated Useful Life Cash and cash equivalents $ 3 Other intangible assets Brands 220 n/a Brands 11 5 years Contractual arrangements 6 12 years Customer relationships 1 8 years - 40 years Assumed liabilities, net of acquired assets (1) (48) Goodwill (2) 113 Total consideration exchanged 306 Less: Company's previous ownership interest 22 Less: Holdback placed in Escrow 15 Acquisition of business $ 269 (1) The Company valued WIP and finished goods inventory resulting in a step-up of $2 million which was recognized in the cost of goods sold for the year ended December 31, 2018 as the related inventory was sold during that period. (2) The goodwill recognized is attributable to operational and general and administrative cost synergies resulting from the warehouse and transportation integration, purchasing scale on various spend categories and optimization of duplicate positions and processes. The goodwill created in the Big Red Acquisition is not deductible for tax purposes. Acquisition of Core Overview and Purchase Price On November 30, 2018, the Company closed the Core Acquisition, whereby we acquired Core for merger consideration, which represented an enterprise value of $525 million (subject to customary post-closing working capital and other adjustments), with the issuance of KDP shares from the open market and approximately $6 million in cash. Approximately $27 million of cash was held back and placed in escrow. The number of shares of KDP common stock issued was based on the final merger consideration and the volume weighted average of the closing prices of KDP common stock for the five consecutive trading days ending on, and including, the second trading day prior to the closing. Core is a brand owner with a portfolio of NCBs in the water category. As a result of the Core Acquisition, the Company's 5.1% equity interest of Core's common units was remeasured to fair value of $26 million. The gain of approximately $12 million was recorded in Other expense (income), net during the year ended December 31, 2018. Allocation of Consideration Exchanged The Company's allocation of consideration exchanged to the net tangible and intangible assets acquired and liabilities assumed in the Core Acquisition is based on estimated fair values as of November 30, 2018, and was finalized on November 30, 2019. The following is a summary of the allocation of purchase price to the estimated fair values of assets acquired and liabilities assumed in the Core Acquisition: (in millions) Purchase Price Allocation Estimated Useful Life Cash and cash equivalents $ 10 Other intangible assets Brands 142 n/a Contractual arrangements 17 10 years Assumed liabilities, net of acquired assets (17) Goodwill (1) 362 Total purchase price $ 514 Company's previous ownership interest 31 Less: Holdback placed in Escrow 23 Acquisition of business $ 460 (1) The goodwill recognized is attributable to operational and general and administrative cost synergies resulting from the warehouse and transportation integration, purchasing scale on various spend categories and optimization of duplicate positions and processes. The goodwill created in the Core Acquisition is deductible for tax purposes. TRANSACTION EXPENSES The following table provides information about the Company's transaction expenses associated with business combinations (completed or abandoned) incurred during the years ended December 31, 2020, 2019 and 2018: Year Ended December 31, (in millions) 2020 2019 2018 DPS Merger $ — $ 8 $ 158 Other transaction expenses — 17 4 Total transaction expenses incurred $ — $ 25 $ 162 INVESTMENTS IN UNCONSOLIDATED AFFILIATES The following table summarizes the Company's investments in unconsolidated affiliates: December 31, (in millions) Ownership Interest 2020 2019 BodyArmor 12.5 % $ 51 $ 52 Bedford 30.0 % — 46 Dyla LLC 12.4 % 12 13 Force Holdings LLC 33.3 % 5 5 Beverage startup companies (various) 15 30 Other (various) 5 5 Investments in unconsolidated affiliates $ 88 $ 151 Impairments of Investments Bedford Investment and Related Party Note Receivable The Company and ABI, in conjunction with the creation of Bedford, had executed a line of credit agreement with Bedford on March 3, 2017, which was amended on December 7, 2018 to increase the line of credit. The Company committed and funded the $51 million capacity, which incurs a fixed interest rate of 8.1% per annum. The credit agreement with Bedford matures on March 3, 2024. In March 2020, the Company reduced its expectation of future operating performance for Bedford based on COVID-19 and a new revised five-year projection from the management of Bedford that projected the possibility of profitability two years later than previously anticipated. As a result of these indicators of impairment, the Company tested the Bedford investment for an other-than-temporary impairment using a discounted cash flow framework with multiple scenarios, including the conversion of the note receivable into equity. The results of its analysis indicated that the note receivable of $55 million was fully impaired and the investment in unconsolidated affiliates was impaired by $31 million, which was recorded on the Impairment of investments and note receivable line in the Consolidated Statements of Income. As a result of the other-than-temporary impairment, the Company has placed the note receivable in non-accrual status. Beverage Startup Companies In September 2020, the Company tested its investment in LifeFuels, which is included in the Beverage startup companies line in the table above, for an other-than-temporary impairment as a result of continued losses, ongoing liquidity concerns and a lack of a buyer for LifeFuels. As a result of this analysis, the Company determined that the investment was fully impaired and recorded an impairment charge of approximately $16 million to the Impairment of investments and note receivable line in the Consolidated Statements of Income. |
Restructuring and Integration C
Restructuring and Integration Costs | 12 Months Ended |
Dec. 31, 2020 | |
Restructuring and Related Activities [Abstract] | |
Restructuring and Integration Costs | Restructuring and Integration Costs Restructuring and integration charges incurred on the defined programs during the years ended December 31, 2020, 2019 and 2018 were as follows: Year Ended December 31, (in millions) 2020 2019 2018 Business realignment $ — $ — $ 2 Keurig K2.0 exit — 1 12 DPS Integration program 200 232 155 Other restructuring programs — — 1 Total restructuring and integration charges $ 200 $ 233 $ 170 Restructuring liabilities that qualify as exit and disposal costs under U.S. GAAP are included in accounts payable and accrued expenses on the consolidated financial statements. R estructuring liabilities as of December 31, 2020 and 2019 , along with charges to expense, cash payments, and non-cash charges during the years ended December 31, 2020 and 2019, were as follows: (in millions) Workforce Reduction Costs Other (1) Total Balance as of December 31, 2018 $ 28 $ 1 $ 29 Charges to expense 31 — 31 Cash payments (44) — (44) Non-cash adjustment items — (1) (1) Balance as of December 31, 2019 15 — 15 Charges to expense 31 — 31 Cash payments (29) — (29) Non-cash adjustment items (3) — (3) Balance as of December 31, 2020 $ 14 $ — $ 14 (1) Primarily reflects activities associated with the closure of certain facilities, excluding contract termination costs, which include any associated asset write-downs and accelerated depreciation. RESTRUCTURING PROGRAMS 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 by 2021. The restructuring and integration program resulted in cumulative pre-tax charges of approximately $587 million, primarily consisting of professional fees related to the integration and transformation and costs associated with severance and employee terminations, through December 31, 2020. Business Realignment In 2018, the Company approved realignment as the Company determined that its strategic priorities had shifted and as a result has redesigned its organization impacting various employees in the U.S., Canada and UK. The restructuring resulted in cumulative pre-tax restructuring charges of approximately $2 million, primarily related to costs associated with severance and employee terminations through December 31, 2018. The Company does not expect to incur additional restructuring charges related to this realignment as it was completed in 2018. Keurig K2.0 Exit |
Income Taxes
Income Taxes | 12 Months Ended |
Dec. 31, 2020 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes Income before provision for income taxes was as follows: For the Year Ended December 31, (in millions) 2020 2019 2018 U.S. $ 1,367 $ 1,389 $ 635 International 386 305 156 Total $ 1,753 $ 1,694 $ 791 The provision for income taxes has the following components: For the Year Ended December 31, (in millions) 2020 2019 2018 Current: Federal $ 297 $ 303 $ 183 State 103 98 62 International 79 62 38 Total current provision $ 479 $ 463 $ 283 Deferred: Federal $ (31) $ (31) $ (24) State (6) 1 (50) International (14) 7 (7) Total deferred provision $ (51) $ (23) $ (81) Total provision for income taxes $ 428 $ 440 $ 202 The following is a reconciliation of the provision for income taxes computed at the U.S. federal statutory tax rate to the provision for income taxes reported in the Consolidated Statements of Income: For the Year Ended December 31, (in millions) 2020 2019 2018 Statutory federal income tax rate 21.0 % 21.0 % 21.0 % State income taxes, net 4.0 % 3.7 % 5.4 % U.S. federal domestic manufacturing benefit — % — % (1.5) % Impact of non-U.S. Operations 0.2 % 0.3 % 0.1 % Tax credits (1.3) % (0.9) % (0.9) % Valuation allowance for deferred tax assets (1.1) % — % 2.0 % U.S. taxation of foreign earnings 1.6 % 1.5 % 1.8 % Deferred rate change 0.5 % (0.3) % (4.9) % State refund — % — % (0.4) % Uncertain tax positions (1.3) % — % 0.6 % U.S. federal provision to return 0.1 % (0.6) % (0.3) % Transaction costs — % — % 1.4 % Impact of the TCJA — % — % 0.5 % Other 0.7 % 1.3 % 0.7 % Total provision for income taxes 24.4 % 26.0 % 25.5 % Deferred tax assets and liabilities were comprised of the following: December 31, (in millions) 2020 2019 Deferred tax assets: Operating lease liability $ 161 $ 67 Net operating losses carryforwards 46 48 Tax credit carryforwards 54 56 Accrued expenses 153 118 Share-based compensation 36 24 Multi-year upfront payments 15 18 Equity method investments 29 — Other 27 36 Total deferred tax assets 521 367 Valuation allowances (51) (71) Total deferred tax assets, net of valuation allowances $ 470 $ 296 Deferred tax liabilities: Brands, trade names and other intangible assets $ (5,916) $ (5,913) Property, plant and equipment (293) (263) Derivative instruments (38) (48) Right of use assets (159) (64) Equity method investments — (1) Other (12) (8) Total deferred tax liabilities (6,418) (6,297) Net deferred tax liabilities $ (5,948) $ (6,001) CARRYFORWARDS As of December 31, 2020 and 2019, the Company had $45 million and $48 million, respectively, in tax-effected Luxembourg net operating loss carry forwards. Of the $45 million of net operating loss carryforwards as of December 31, 2020, $44 million will not expire and $1 million will begin to expire in the year 2035. The Company recorded a $19 million valuation allowance release during the year ended December 31, 2020 on the Luxembourg net operating losses, as realization is more likely than not. The Company has $53 million of U.S. foreign tax credit carryforwards and $1 million of other carryforwards, primarily related to U.S. state income tax. Of the $53 million of U.S. foreign tax credit carryforwards, $51 million have a valuation allowance. Foreign tax credits will begin to expire in 2026. UNDISTRIBUTED INTERNATIONAL EARNINGS For the tax year ended December 31, 2020 and 2019, undistributed earnings in non-U.S. subsidiaries for which no deferred taxes have been provided totaled approximately $130 million and $88 million, respectively. The majority of additional current year earnings and profits are subject to inclusion through new tax rules effective for the December 31, 2018 period and future years under the TCJA. Under these new rules, any remaining tax on earnings and profits would be considered immaterial. An actual repatriation from our non-U.S. subsidiaries could still be subject to additional foreign withholding taxes. The Company has analyzed our global working capital and cash requirements and continues to be indefinitely reinvested in its undistributed earnings except for amounts in excess of its working capital and cash requirements. The Company has recorded any potential withholding tax liabilities, if necessary, attributable to repatriation. OTHER TAX MATTERS The Company files income tax returns for U.S. federal purposes and in various state jurisdictions. The Company also files income tax returns in various foreign jurisdictions, principally Canada and Mexico. The U.S. and most state income tax returns for years prior to 2017 are closed to examination by applicable tax authorities. Mexican income tax returns are generally open for tax years 2015 and forward, and Canadian income tax returns are open for audit for tax years 2012 and forward. The Company has a tax holiday in Singapore, whereby the local statutory rate is significantly reduced if certain conditions are met. The tax holiday for Singapore is effective through June 2024. The impact of the tax holiday increased net income by approximately $6 million in the year ended December 31, 2020, resulting in no impact to basic and diluted EPS for the year ended December 31, 2020. UNRECOGNIZED TAX BENEFITS The following is a reconciliation of the changes in the gross balance of unrecognized tax benefits: For the Year Ended December 31, (in millions) 2020 2019 2018 Balance, beginning of the period $ 43 $ 50 $ 35 Increases related to tax positions taken during the current year 2 2 1 Increases related to tax positions taken during the prior year 2 3 12 Increases related to tax positions from acquisitions — — 13 Decreases related to settlements with taxing authorities (8) (8) (8) Decreases related to lapse of applicable statute of limitations (21) (4) (3) Balance, end of the period $ 18 $ 43 $ 50 The total amount of unrecognized tax benefits that, if recognized, would reduce the effective tax rate, is $13 million after considering the federal impact of state income taxes. During the next twelve months, KDP does not expect a significant change to its unrecognized tax benefits. KDP accrues interest and penalties on its uncertain tax positions as a component of its provision for income taxes. The Company recognized a benefit of $8 million and expense of $3 million and $1 million related to interest and penalties for uncertain tax positions for the years ended December 31, 2020, 2019 and 2018, respectively. The Company had a total of $1 million and $11 million accrued for interest and penalties for its uncertain tax positions reported as part of other non-current liabilities as of December 31, 2020 and 2019, respectively. |
Derivatives
Derivatives | 12 Months Ended |
Dec. 31, 2020 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Derivatives | Derivatives INTEREST RATES The Company 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. 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 Consolidated Statements of Income. As of December 31, 2020, all interest rate swap contracts will mature in March 2025. FOREIGN EXCHANGE The Company 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 years ended December 31, 2020, 2019 and 2018, the Company 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 Consolidated Statements of Income as the associated risk. These FX contracts have maturities ranging from January 2021 to September 2024 as of December 31, 2020. Cash Flow Hedges During 2020, the Company 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 January 2021 to March 2022 as of December 31, 2020. COMMODITIES 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 years ended December 31, 2020, 2019 and 2018, 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 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. As of December 31, 2020, these commodity contracts have maturities ranging from January 2021 to January 2024. NOTIONAL AMOUNTS OF DERIVATIVE INSTRUMENTS The following table presents the notional amounts of the Company's outstanding derivative instruments by type: December 31, (in millions) 2020 2019 Interest rate contracts Receive-fixed, pay-variable interest rate swaps (1) $ — $ 50 Receive-variable, pay-fixed interest rate swaps (2) 450 575 FX contracts Forward contracts, not designated as hedging instruments 476 523 Forward contracts, designated as cash flow hedges 333 — Commodity contracts 450 150 (1) During the year ended December 31, 2020, the Company elected to terminate $50 million notional amount of receive-fixed, pay-variable interest rate swaps and received cash of $18 million. (2) During the year ended December 31, 2020, the Company elected to terminate $575 million notional amount of receive-variable, pay-fixed interest rate swaps and received cash of $2 million. 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. FX forward contracts are valued using quoted FX forward rates at the reporting date. Therefore, the Company has categorized these contracts as Level 2. Not Designated as Hedging Instruments The following table summarizes the fair value hierarchy and the location of the fair value of the Company's derivative instruments not designated as hedging instruments within the Consolidated Balance Sheets: December 31, (in millions) Fair Value Hierarchy Balance Sheet Location 2020 2019 Assets: Interest rate contracts 2 Prepaid expenses and other current assets $ — $ 1 Commodity contracts 2 Prepaid expenses and other current assets 45 30 Interest rate contracts 2 Other non-current assets — 18 Commodity contracts 2 Other non-current assets 12 1 Liabilities: Interest rate contracts 2 Other current liabilities $ 2 $ — FX forward contracts 2 Other current liabilities 6 2 Commodity contracts 2 Other current liabilities 5 10 Interest rate contracts 2 Other non-current liabilities 7 — FX forward contracts 2 Other non-current liabilities 9 3 Commodity contracts 2 Other non-current liabilities 2 1 Designated as Hedging Instruments The following table summarizes the fair value hierarchy and the location of the fair value of the Company's derivative instruments which are designated as hedging instruments within the Consolidated Balance Sheets: December 31, (in millions) Fair Value Hierarchy Balance Sheet Location 2020 2019 Liabilities: FX forward contracts 2 Other current liabilities $ 12 $ — IMPACT OF DERIVATIVE INSTRUMENTS NOT DESIGNATED AS HEDGING INSTRUMENTS The following table presents the amount of (gains) losses recognized in the 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. For the Year Ended December 31, (in millions) Income Statement Location 2020 2019 2018 Commodity contracts Cost of sales $ (35) $ (10) $ 42 Commodity contracts SG&A expenses 22 (15) 20 Interest rate contracts Interest expense 7 7 6 FX forward contracts Cost of sales (6) 5 — FX forward contracts Other expense (income), net 6 18 (27) IMPACT OF CASH FLOW HEDGES During the year ended December 31, 2020, the Company reclassified $2 million of losses from AOCI into income from operations. No amounts were reclassified from AOCI into income from operations for the years ended December 31, 2019 and 2018. KDP expects to reclassify approximately $14 million of losses from AOCI into income from operations during the next twelve months. |
Leases (Notes)
Leases (Notes) | 12 Months Ended |
Dec. 31, 2020 | |
Leases [Abstract] | |
Lessee, Finance Leases | Leases The following table presents the components of lease cost: Year Ended December 31, (in millions) 2020 2019 Operating lease cost $ 113 $ 82 Finance lease cost Amortization of right-of-use assets 47 48 Interest on lease liabilities 14 15 Variable lease cost (1) 27 28 Short-term lease cost 1 5 Sublease income (2) (3) Total lease cost $ 200 $ 175 (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: Year Ended December 31, (in millions) 2020 2019 Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows from operating leases $ 103 $ 77 Operating cash flows from finance leases 14 15 Financing cash flows from finance leases 52 38 The following table presents information about the Company's weighted average discount rate and remaining lease term: December 31, 2020 2019 Weighted average discount rate Operating leases 4.3 % 4.6 % Finance leases 4.4 % 5.1 % Weighted average remaining lease term Operating leases 12 years 10 years Finance leases 11 years 12 years SCHEDULE OF FUTURE MINIMUM LEASE PAYMENTS Future minimum lease payments under non-cancellable leases as of December 31, 2020 were as follows: (in millions) Operating Leases Finance Leases 2021 $ 90 $ 58 2022 84 51 2023 75 48 2024 72 45 2025 65 42 Thereafter 444 183 Total future minimum lease payments 830 427 Less: imputed interest (178) (85) Present value of minimum lease payments $ 652 $ 342 SIGNIFICANT LEASES THAT HAVE NOT YET COMMENCED As of December 31, 2020, the Company has entered into leases that have not yet commenced with estimated aggregated future lease payments of approximately $625 million. These leases will commence between the first quarter of 2021 and the third quarter of 2021, with initial lease terms ranging from 1 year to 17 years. ASSET SALE-LEASEBACK TRANSACTIONS On January 10, 2020, the Company closed an asset sale-leaseback transaction on two distribution properties. The Company received proceeds of approximately $50 million, net of selling costs for the properties, which had a carrying value of $27 million, and resulted in an approximately $23 million gain on the sale transaction. The leaseback is accounted for as an operating lease. The term of the leaseback is expected to end in 2025 and has two three-year renewals. On January 6, 2020, the Company closed an asset sale-leaseback transaction on two manufacturing properties as the buyer obtained control. The Company received proceeds of approximately $150 million, net of selling costs for the properties, which had a carrying value of $131 million, and resulted in an approximately $19 million gain on the sale transaction. The leaseback is accounted for as an operating lease. The initial term of the leaseback is expected to end during 2034 and has two 10-year renewal options. The renewal options are not reasonably assured as (i) the Company's position that the dynamic environment in which it operates precludes the Company's ability to be reasonably certain of exercising the renewal options in the distant future and (ii) the options are contingent as the Company must remain investment grade and a change-in-control has not occurred as of the end of the lease term. The leaseback has a residual value guarantee; however, the Company concluded it was not probable that the Company will owe an amount at the end of the lease term and will record the lease obligation excluding the residual value guarantee. On December 23, 2019, the Company closed an asset sale-leaseback transaction for three manufacturing properties as the buyer obtained control. The Company received proceeds of approximately $170 million, net of selling costs for the properties, which had a carrying value of $140 million, and resulted in an approximately $30 million gain on the sale transaction, which was recorded in Other operating (income) expense, net. The leaseback is accounted for as an operating lease. The initial term of the leaseback is expected to end during 2034 and has two 10-year renewal options. The renewal options are not reasonably assured as (i) the Company's position that the dynamic environment in which it operates precludes the Company's ability to be reasonably certain of exercising the renewal options in the distant future and (ii) the options are contingent on the Company remaining investment grade and no change-in-control as of the end of the lease term. The leaseback has a residual value guarantee; however, the Company concluded it was not probable that the Company will owe an amount at the end of the lease term and recorded the lease obligation excluding the residual value guarantee. On December 20, 2019, the Company closed the asset sale-leaseback transaction on the Company's Plano headquarters as the buyer obtained control. The leaseback is accounted for as an operating lease. During the year ended December 31, 2019, the Company transferred the assets from plant, property and equipment to assets held for sale and recognized an impairment of approximately $5 million as a result. The Company received proceeds of approximately $49 million, net of selling costs for the properties, and recognized no additional gain or loss on the sale transaction. The term of the leaseback is expected to end in 2021 upon the Company's relocation to a new facility. On December 13, 2019, the Company closed the asset sale-leaseback transaction on certain properties in Waterbury, Vermont as the buyer obtained control. The leaseback is accounted for as an operating lease. During the year ended December 31, 2019, the Company transferred the assets from plant, property and equipment to assets held for sale and recognized an impairment of approximately $12 million as a result. The Company received proceeds of approximately $8 million, net of selling costs for the properties, and recognized no gain or loss on the sale transaction. The term of the leaseback ended in 2020 upon the Company's relocation to a new facility. |
Lessee, Operating Leases | Leases The following table presents the components of lease cost: Year Ended December 31, (in millions) 2020 2019 Operating lease cost $ 113 $ 82 Finance lease cost Amortization of right-of-use assets 47 48 Interest on lease liabilities 14 15 Variable lease cost (1) 27 28 Short-term lease cost 1 5 Sublease income (2) (3) Total lease cost $ 200 $ 175 (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: Year Ended December 31, (in millions) 2020 2019 Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows from operating leases $ 103 $ 77 Operating cash flows from finance leases 14 15 Financing cash flows from finance leases 52 38 The following table presents information about the Company's weighted average discount rate and remaining lease term: December 31, 2020 2019 Weighted average discount rate Operating leases 4.3 % 4.6 % Finance leases 4.4 % 5.1 % Weighted average remaining lease term Operating leases 12 years 10 years Finance leases 11 years 12 years SCHEDULE OF FUTURE MINIMUM LEASE PAYMENTS Future minimum lease payments under non-cancellable leases as of December 31, 2020 were as follows: (in millions) Operating Leases Finance Leases 2021 $ 90 $ 58 2022 84 51 2023 75 48 2024 72 45 2025 65 42 Thereafter 444 183 Total future minimum lease payments 830 427 Less: imputed interest (178) (85) Present value of minimum lease payments $ 652 $ 342 SIGNIFICANT LEASES THAT HAVE NOT YET COMMENCED As of December 31, 2020, the Company has entered into leases that have not yet commenced with estimated aggregated future lease payments of approximately $625 million. These leases will commence between the first quarter of 2021 and the third quarter of 2021, with initial lease terms ranging from 1 year to 17 years. ASSET SALE-LEASEBACK TRANSACTIONS On January 10, 2020, the Company closed an asset sale-leaseback transaction on two distribution properties. The Company received proceeds of approximately $50 million, net of selling costs for the properties, which had a carrying value of $27 million, and resulted in an approximately $23 million gain on the sale transaction. The leaseback is accounted for as an operating lease. The term of the leaseback is expected to end in 2025 and has two three-year renewals. On January 6, 2020, the Company closed an asset sale-leaseback transaction on two manufacturing properties as the buyer obtained control. The Company received proceeds of approximately $150 million, net of selling costs for the properties, which had a carrying value of $131 million, and resulted in an approximately $19 million gain on the sale transaction. The leaseback is accounted for as an operating lease. The initial term of the leaseback is expected to end during 2034 and has two 10-year renewal options. The renewal options are not reasonably assured as (i) the Company's position that the dynamic environment in which it operates precludes the Company's ability to be reasonably certain of exercising the renewal options in the distant future and (ii) the options are contingent as the Company must remain investment grade and a change-in-control has not occurred as of the end of the lease term. The leaseback has a residual value guarantee; however, the Company concluded it was not probable that the Company will owe an amount at the end of the lease term and will record the lease obligation excluding the residual value guarantee. On December 23, 2019, the Company closed an asset sale-leaseback transaction for three manufacturing properties as the buyer obtained control. The Company received proceeds of approximately $170 million, net of selling costs for the properties, which had a carrying value of $140 million, and resulted in an approximately $30 million gain on the sale transaction, which was recorded in Other operating (income) expense, net. The leaseback is accounted for as an operating lease. The initial term of the leaseback is expected to end during 2034 and has two 10-year renewal options. The renewal options are not reasonably assured as (i) the Company's position that the dynamic environment in which it operates precludes the Company's ability to be reasonably certain of exercising the renewal options in the distant future and (ii) the options are contingent on the Company remaining investment grade and no change-in-control as of the end of the lease term. The leaseback has a residual value guarantee; however, the Company concluded it was not probable that the Company will owe an amount at the end of the lease term and recorded the lease obligation excluding the residual value guarantee. On December 20, 2019, the Company closed the asset sale-leaseback transaction on the Company's Plano headquarters as the buyer obtained control. The leaseback is accounted for as an operating lease. During the year ended December 31, 2019, the Company transferred the assets from plant, property and equipment to assets held for sale and recognized an impairment of approximately $5 million as a result. The Company received proceeds of approximately $49 million, net of selling costs for the properties, and recognized no additional gain or loss on the sale transaction. The term of the leaseback is expected to end in 2021 upon the Company's relocation to a new facility. On December 13, 2019, the Company closed the asset sale-leaseback transaction on certain properties in Waterbury, Vermont as the buyer obtained control. The leaseback is accounted for as an operating lease. During the year ended December 31, 2019, the Company transferred the assets from plant, property and equipment to assets held for sale and recognized an impairment of approximately $12 million as a result. The Company received proceeds of approximately $8 million, net of selling costs for the properties, and recognized no gain or loss on the sale transaction. The term of the leaseback ended in 2020 upon the Company's relocation to a new facility. |
Employee Benefit Plans (Notes)
Employee Benefit Plans (Notes) | 12 Months Ended |
Dec. 31, 2020 | |
Retirement Benefits [Abstract] | |
Pension and Other Postretirement Benefits Disclosure [Text Block] | Employee Benefit Plans DEFINED BENEFIT PENSION PLANS Overview The Company has several non-contributory defined benefit plans, each having a measurement date of December 31. To participate in the defined benefit plans, eligible employees must have been employed by the Company for at least one year. Employee benefit plan obligations and expenses included in the Company's consolidated financial statements are determined using actuarial analyses based on plan assumptions including employee demographic data such as years of service and compensation, benefits and claims paid and employer contributions, among others. The Company also participates in various multi-employer defined benefit plans. The Company's largest U.S. defined benefit pension plan, which is a cash balance plan, was suspended and the accrued benefit was frozen effective December 31, 2008. Participants in this plan no longer earn additional benefits for future services or salary increases. The cash balance plans maintain individual record-keeping accounts for each participant, which are annually credited with interest credits equal to the 12-month average of one-year U.S. Treasury Bill rates, plus 1%, with a required minimum rate of 5%. Financial Statement Impact The following table sets forth amounts recognized in the Company's financial statements and the pension plans' funded status: As of December 31, (in millions) 2020 2019 Projected Benefit Obligations Beginning balance $ 226 $ 206 Service cost 3 2 Interest cost 7 9 Actuarial losses, net 22 24 Benefits paid (4) (7) Impact of changes in FX rates (1) 1 Settlements (25) (9) Ending balance $ 228 $ 226 Fair Value of Plan Assets Beginning balance $ 204 $ 178 Actual return on plan assets 28 39 Employer contributions 1 2 Benefits paid (4) (7) Impact of changes in FX rates (1) 1 Settlements (25) (9) Ending balance $ 203 $ 204 Net liability recognized $ (25) $ (22) Non-current assets $ 11 $ 4 Current liability (1) (1) Non-current liability (35) (25) The accumulated benefit obligations for the defined benefit pension plans were $208 million and $223 million as of December 31, 2020 and 2019. The pension plan assets and the projected benefit obligations of KDP's U.S. pension plans represent approximately 98% of the total plan assets and 95% of the total projected benefit obligation of all plans combined as of December 31, 2020. The following table summarizes key pension plan information regarding plans whose accumulated benefit obligations exceed the fair value of their respective plan assets: As of December 31, (in millions) 2020 2019 Aggregate projected benefit obligation $ 87 $ 97 Aggregate accumulated benefit obligation 84 96 Aggregate fair value of plan assets 61 71 The following table summarizes the components of the Company's net periodic benefit cost: For the Year Ended December 31, (in millions) 2020 2019 2018 Service cost $ 3 $ 2 $ 1 Interest cost 7 9 5 Expected return on assets (8) (9) (5) Settlements (1) (1) — Total net periodic benefit costs $ 1 $ 1 $ 1 The Company uses the corridor approach for amortization of actuarial gains or losses. The corridor is calculated as 10% of the greater of the plans’ projected benefit obligation or assets. The amortization period for plans with active participants is the average future service of covered active employees, and the amortization period for plans with no active participants is the average future lifetime of plan participants. There will be no estimated service cost or net actuarial loss for the defined benefit pension plans amortized from AOCI into periodic benefit cost in 2021. The Company included $3 million net actuarial loss in AOCI as of December 31, 2020 and none as of December 31, 2019. Contributions and Expected Benefit Payments The Company's contributions to its pension plans for the years ended December 31, 2020, 2019 and 2018, and its projected contributions for the year ended December 31, 2021, are insignificant. The following table summarizes the estimated future benefit payments for the Company's defined benefit plans: 2021 2022 2023 2024 2025 2026-2030 Estimated future benefit payments $ 11 $ 11 $ 12 $ 12 $ 12 $ 60 Actuarial Assumptions The Company's pension expense was calculated based upon a number of actuarial assumptions including discount rates, retirement age, mortality rates, compensation rate increases and expected long-term rate of return on plan assets for pension benefits. The discount rate that was utilized for determining the Company’s projected benefit obligations as of December 31, 2020 and 2019, as well as projected 2021 net periodic benefit cost, for U.S. plans was selected based upon an interest rate yield curve. The yield curve is constructed based on the yields of a large number of U.S. Aa rated bonds as of December 31, 2020. The population of bonds utilized to calculate the discount rate includes those having an average yield between the 10th and 90th percentiles. Projected cash flows from the U.S. plans are then matched to spot rates along that yield curve in order to determine their present value and a single equivalent discount rate is calculated that produces the same present value as the spot rates. Expected mortality is a key assumption in the measurement for pension benefit obligations. For KDP's U.S. plans, the Company used the Pri-2012 mortality tables and the Mortality Improvement Scale MP-2020 published by the Society of Actuaries’ Retirement Plans Experience Committee for the year ended December 31, 2020, and the Pri-2012 mortality tables and the Mortality Improvement Scale MP-2019 for the year ended December 31, 2019. The following table summarizes the weighted-average assumptions used to determine benefit obligations at the plan measurement dates for U.S. plans: As of December 31, 2020 2019 Weighted average discount rate 2.55 % 3.30 % Rate of increase in compensation levels 3.00 % 3.00 % The following table summarizes the weighted average actuarial assumptions used to determine the net periodic benefit costs for U.S. plans: For the Year Ended December 31, 2020 2019 2018 Weighted average discount rate 3.30 % 3.30 % 4.25 % Rate of increase in compensation levels 3.00 % 3.00 % 3.00 % Expected long-term rate of return 4.00 % 4.00 % 5.25 % For the years ended December 31, 2020 and 2019, the expected long-term rate of return on U.S. pension fund assets held by the Company's pension trusts was determined based on several factors, including the impact of active portfolio management and projected long-term returns of broad equity and bond indices. The plans' historical returns were also considered. The expected long-term rate of return on the assets in the plans was based on an asset allocation assumption for fixed income and equity as follows: For the Year Ended December 31, 2020 2019 Fixed income securities: Asset allocation assumption 80 % 80 % Expected long-term rate of return 3.4 % 3.1 % Equity securities: Asset allocation assumption 20 % 20 % Expected long-term rate of return 7.4 % 7.5 % Investment Policy and Strategy The Company has established formal investment policies for the assets associated with defined benefit pension plans. The Company's investment policy and strategy are mandated by the Company's Investment Committee. The overriding investment objective is to provide for the availability of funds for pension obligations as they become due, to maintain an overall level of financial asset adequacy and to maximize long-term investment return consistent with a reasonable level of risk. The Company's pension plan investment strategy includes the use of actively-managed securities. Investment performance both by investment manager and asset class is periodically reviewed, as well as overall market conditions with consideration of the long-term investment objectives. None of the plan assets are invested directly in equity or debt instruments issued by the Company. It is possible that insignificant indirect investments exist through its equity holdings. The equity and fixed income investments under the Company's sponsored pension plan assets are currently well diversified. The plans' asset allocation policy is reviewed at least annually. Factors considered when determining the appropriate asset allocation include changes in plan liabilities, an evaluation of market conditions, tolerance for risk and cash requirements for benefit payments. As of December 31, 2020 and 2019, the Company was in compliance with the investment policy for the U.S. defined benefit pension plans, which contains allowable ranges in asset mix of 5-15% for U.S. equity securities, 5-15% for international equity securities, and 70-90% for fixed income securities. PRMB PLANS As a result of the DPS Merger, the Company acquired several non-contributory defined benefit PRMB plans, each having a measurement date of December 31. The majority of these PRMB plans have been frozen. To participate in the defined benefit plans, eligible employees must have been employed by the Company for at least one year. The PRMB plans are limited to qualified expenses and are subject to deductibles, co-payment provisions and other provisions. The Company's PRMB plans are not significant to the Company's consolidated financial statements as of December 31, 2020 and 2019. FAIR VALUE OF THE PENSION AND PRMB ASSETS The fair value hierarchy is not only applicable to assets and liabilities that are included in the Company's Consolidated Balance Sheets, but is also applied to certain other assets that indirectly impact the Company's consolidated financial statements. Assets contributed by the Company to pension or other PRMB plans become the property of the individual plans. Even though the Company no longer has control over these assets, we are indirectly impacted by subsequent fair value adjustments to these assets. The actual return on these assets impacts the Company's future net periodic benefit cost, as well as amounts recognized in the Company's Consolidated Balance Sheets. As such, the Company uses the fair value hierarchy to measure the fair value of assets held by the Company's various pension and PRMB plans. The following tables present the major categories of plan assets and the respective fair value hierarchy for the pension and PRMB plan assets: Fair Value Measurement as of December 31, 2020 2019 (in millions) Fair Value Hierarchy Level Pension Assets PRMB Assets Pension Assets PRMB Assets Cash and cash equivalents Level 1 $ 8 $ 1 $ 3 $ — U.S. equity securities (1)(2) Level 2 22 1 21 1 International equity securities (1)(2) Level 2 12 7 10 6 International fixed income securities (2) Level 2 4 — 15 — Fixed income securities (3) Level 2 157 1 155 1 Total $ 203 $ 10 $ 204 $ 8 (1) Equity securities are comprised of actively managed U.S. and international index funds. (2) The NAV is based on the fair value of the underlying assets owned by the equity index fund or fixed income investment vehicle per share, multiplied by the number of units held as of the measurement date. (3) Fixed income securities are comprised of a diversified portfolio of investment-grade corporate and government securities. Investments are provided by the investment managers using a unit price or NAV based on the fair value of the underlying investments. MULTI-EMPLOYER PLANS As a result of the DPS Merger, the Company assumed multi-employer plans, which are three trustee-managed multi-employer defined benefit pension plans for union-represented employees under certain collective bargaining agreements. The risks of participating in these multi-employer plans are different from single-employer plans, as assets contributed to the multi-employer plan by one employer may be used to provide benefits to employees of other participating employers. Additionally, if a participating employer stops contributing to the plan, the unfunded obligations of the plan may be borne by the remaining participating employers. Contributions paid into the multi-employer plans are expensed as incurred. Multi-employer plan expenses were $7 million, $4 million and $2 million for the years ended December 31, 2020, 2019 and 2018, respectively. Individually Significant Multi-Employer Plan The Company participates in one multi-employer plan, Central States, which is considered to be individually significant. The following table presents information about Central States as of December 31, 2020: Plan's employer identification number 36-6044243 Plan number 001 Expiration dates of collective bargaining agreements (1) February 17,2021 through January 20, 2025 Financial Improvement Plan/Rehabilitation Plan status pending/implemented Implemented Pension Protection Act zone status Red Surcharge imposed Yes (1) Central States includes seven collective bargaining agreements. The largest agreement, which is set to expire March 2, 2024, covers approximately 56% of the employees included in Central States. Two of the collective bargaining agreements are set to expire during 2021, covering approximately 6% of the employees included in Central States. The most recent Pension Protection Act zone status available as of December 31, 2020 is for the plan's year-end as of December 31, 2019. Central States has not utilized any extended amortization provisions that affect the calculation of the zone status. The Company's contributions to Central States did not exceed 5% of the total contributions made to Central States for the years ended December 31, 2020, 2019 and 2018. Future estimated contributions to Central States based on the number of covered employees and the terms of the collective bargaining agreements are as follows: 2021 2022 2023 2024 2025 Future estimated contributions to Central States $ 2 $ 2 $ 2 $ 2 $ 2 DEFINED CONTRIBUTION PLANS The Company sponsors various qualified defined contribution plans that cover U.S. and foreign based employees who meet certain eligibility requirements. The U.S. plans permit both pre-tax and after-tax contributions, which are subject to limitations imposed by IRS regulations. The Company also sponsors a non-qualified defined contribution plan for employees which is maintained in a rabbi trust and are not readily available to the Company. Although participants direct the investment of these funds, the investments are classified as trading securities and are included in other non-current assets. As such, the Company uses the fair value hierarchy to measure the fair value of these trading securities as follows: As of December 31, (in millions) Fair Value Hierarchy 2020 2019 Marketable securities - trading Level 1 $ 41 $ 40 The corresponding liability related to the deferred defined compensation plan is recorded in other non-current liabilities. Gains and losses in connection with these trading securities are recorded in Other expense (income), net with an offset for the same amount recorded in SG&A expenses. There were $8 million in gains associated with these trading securities during each of the years ended December 31, 2020 and 2019, and $5 million in losses during the year ended December 31, 2018. The Company makes matching contributions and discretionary profit sharing contributions to each of the respective plans. The Company incurred contribution expense of $77 million, $66 million and $36 million to the defined contribution plans for the years ended December 31, 2020, 2019 and 2018, respectively. |
Earnings Per Share
Earnings Per Share | 12 Months Ended |
Dec. 31, 2020 | |
Earnings Per Share [Abstract] | |
Earnings Per Share | Earnings Per Share The following table presents the Company's basic and diluted EPS and shares outstanding: For the Year Ended December 31, (in millions, except per share data) 2020 2019 2018 Basic EPS: Net income attributable to KDP $ 1,325 $ 1,254 $ 586 Weighted average common shares outstanding 1,407.2 1,406.7 1,086.3 Earnings per common share — basic $ 0.94 $ 0.89 $ 0.54 Diluted EPS: Net income attributable to KDP $ 1,325 $ 1,254 $ 586 Weighted average common shares outstanding 1,407.2 1,406.7 1,086.3 Effect of dilutive securities: Stock options 0.3 0.6 0.9 RSUs 14.6 11.8 10.4 Weighted average common shares outstanding and common stock equivalents 1,422.1 1,419.1 1,097.6 Earnings per common share — diluted $ 0.93 $ 0.88 $ 0.53 Anti-dilutive shares excluded from the diluted weighted average shares outstanding calculation 0.5 — 1.2 |
Stock Based Compensation
Stock Based Compensation | 12 Months Ended |
Dec. 31, 2020 | |
Share-based Payment Arrangement [Abstract] | |
Stock-Based Compensation | Stock-Based Compensation Stock-based compensation expense is primarily recorded in SG&A expenses in the Consolidated Statements of Income. The components of stock-based compensation expense are presented below: For the Year Ended December 31, (in millions) 2020 2019 2018 Total stock-based compensation expense $ 85 $ 64 $ 35 Income tax benefit recognized in the Statements of Income (13) (11) (7) Stock-based compensation expense, net of tax $ 72 $ 53 $ 28 DESCRIPTION OF STOCK-BASED COMPENSATION PLANS Prior to the DPS Merger, Maple Parent Holdings Corp. had share-based compensation programs under which certain designated employees were granted awards in the form of RSUs. Upon consummation of the DPS Merger, RSUs granted under these programs were converted at the exchange ratio established in the DPS Merger into RSUs that will be settled into shares of the Company's common stock on their existing vesting schedule. The Company previously adopted the 2009 Incentive Plan, under which employees and non-employee directors could be granted stock options, stock appreciation rights, stock awards, RSUs and PSUs, and grants subsequent to the DPS Merger Date were granted under the 2009 Incentive Plan. During the year ended December 31, 2019, the Company adopted the 2019 Incentive Plan, which expires in 2029 and otherwise contains substantially similar provisions as the 2009 Incentive Plan. RSUs generally vest on the following schedule: Period Granted Vesting Terms RSUs granted prior to the DPS Merger 4 years, 6 months term with cliff-vesting at the end of the term RSUs granted after the DPS Merger through 2019 5-year term with cliff-vesting at the end of the term RSUs granted during 2020 5-year term with graded vesting as follows: However, from time to time, the Company grants RSUs outside of the normal grant cycle which have different terms and vesting conditions. For all RSU grants, the Company recognizes the expense ratably over the vesting period. During the year ended December 31, 2020, the Company modified the terms of one RSU grant to a named executive officer. A grant of 868,056 RSUs with a five-year vesting term which were previously granted in September 2020 were forfeited, and a corresponding grant of 651,042 PSUs and 217,014 RSUs were granted. The PSUs will vest three years from the beginning date of a predetermined performance period, to the extent that the Company has achieved the performance criteria during the performance period. The performance criteria for the modified award includes a specified market condition which compares total shareholder return to that of certain indices. Additionally, the PSUs are required to be held by the grantee for one year after the awards have vested. The RSUs will vest ratably over a three-year term. As a result of the award modification, no incremental compensation expense will be recognized over the life of the award. The Company's aforementioned incentive plans provide for the issuance of up to an aggregate of 27,425,720 shares of the Company's common stock in stock-based compensation awards. RESTRICTED SHARE UNITS The table below summarizes RSU activity for the year ended December 31, 2020 : RSUs Weighted Average Grant Date Fair Value Weighted Average Remaining Contractual Term (Years) Aggregate Intrinsic Value (in millions) Balance as of December 31, 2019 21,492,786 $ 18.14 2.6 $ 622 Granted 8,542,934 24.91 — — Vested and released (97,681) 16.95 — 3 Forfeited (3,249,735) 23.52 — — Balance as of December 31, 2020 26,688,304 19.66 2.0 854 The weighted average grant date fair value for RSUs granted for the years ended December 31, 2020 and 2019 was $24.91 and $26.55, respectively. The aggregate intrinsic value of the RSUs vested and released for the years ended December 31, 2020, 2019 and 2018 was $3 million, $1 million and $23 million, respectively. As of December 31, 2020, there was $303 million of unrecognized compensation cost related to unvested RSUs that is expected to be recognized over a weighted average period of 3.6 years. PERFORMANCE SHARE UNITS In 2020, the Compensation Committee of the Board approved a PSU plan in connection with the aforementioned award modification. Each PSU is equivalent in value to one share of the Company's common stock. The maximum payout percentage for all PSUs granted by the Company is 100%. The PSUs that are subject to the market condition are valued using a Monte Carlo simulation model, which requires certain assumptions, including the risk-free interest rate, expected volatility, and the estimated dividend yield. The risk-free interest rate used in the Monte Carlo simulation model is based on zero-coupon yields implied by U.S. Treasury issues with remaining terms similar to the performance period on the PSUs. The performance period of the PSUs represents the period of time between the PSU grant date and the end of the performance period. Expected volatility is based on historical data of the Company and certain indices over the most recent time period equal to the performance period. For purposes of determining that the aforementioned award modification resulted in no incremental cost, the Monte Carlo simulation assumed a risk-free interest rate of 0.10%, expected volatility of 29.83% and a dividend yield of 2.08%. The table below summarizes PSU activity for the year ended December 31, 2020 : PSUs Weighted Average Grant Date Fair Value Weighted Average Remaining Contractual Term (Years) Aggregate Intrinsic Value (in millions) Balance as of December 31, 2019 — $ — — $ — Granted 651,042 28.80 2.0 — Vested and released — — — — Forfeited — — — — Balance as of December 31, 2020 651,042 28.80 2.0 21 As of December 31, 2020, there was $17 million of unrecognized compensation cost related to unvested PSUs that is expected to be recognized over a weighted average period of 3.0 years. STOCK OPTIONS Upon the consummation of the DPS Merger, the Company issued replacement stock option awards for DPS stock option awards that were fully vested as of July 9, 2018 but not yet exercised by the employee. The fair value of these replacement stock option awards was considered as consideration exchanged in the DPS Merger as a result of the Change in Control (as defined in the terms of each individual award agreement). The table below summarizes stock option activity for the year ended December 31, 2020 : Stock Options Weighted Average Exercise Price Weighted Average Remaining Contractual Term (Years) Aggregate Intrinsic Value (in millions) Balance as of December 31, 2019 338,814 $ 12.93 6.0 $ 5 Granted — — — — Exercised (143,242) 14.04 — 2 Outstanding as of December 31, 2020 195,572 12.11 4.7 4 Exercisable as of December 31, 2020 195,572 12.11 4.7 4 |
Accumulated Other Comprehensive
Accumulated Other Comprehensive Income | 12 Months Ended |
Dec. 31, 2020 | |
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 Pension and PRMB Liabilities (1) Cash Flow Hedges (2) AOCI Balance as of December 31, 2017 $ 99 $ — $ — $ 99 OCI before reclassifications (225) (4) — (229) Net current period other comprehensive loss (225) (4) — (229) Balance as of December 31, 2018 (126) (4) — (130) OCI before reclassifications 230 5 — 235 Amounts reclassified from AOCI — (1) — (1) Net current period other comprehensive income 230 4 — 234 Balance as of December 31, 2019 104 — — 104 OCI before reclassifications (9) (5) (16) (30) Amounts reclassified from AOCI — 1 2 3 Net current period other comprehensive income (9) (4) (14) (27) Balance as of December 31, 2020 $ 95 (4) $ (14) $ 77 (1) Amounts reclassified from AOCI during the period represent settlement gains (losses), which are recorded to SG&A expenses within the Consolidated Statements of Income. |
Property, Plant and Equipment (
Property, Plant and Equipment (Notes) | 12 Months Ended |
Dec. 31, 2020 | |
Property, Plant and Equipment [Abstract] | |
Property, Plant and Equipment Disclosure [Text Block] | Property, Plant and Equipment Property, plant and equipment, net consisted of the following: December 31, (in millions) 2020 2019 Land $ 54 $ 55 Buildings and improvements 520 473 Machinery and equipment 1,870 1,636 Cold drink equipment 80 78 Software 315 241 Construction-in-progress 393 274 Property, plant and equipment, gross 3,232 2,757 Less: accumulated depreciation and amortization (1,020) (729) Property, plant and equipment, net $ 2,212 $ 2,028 The following table summarizes the location of depreciation expense within the Consolidated Statements of Income: For the Year Ended December 31, (in millions) 2020 2019 2018 Cost of sales $ 215 $ 199 $ 123 SG&A expenses 147 159 110 Total depreciation expense $ 362 $ 358 $ 233 |
Other Financial Information
Other Financial Information | 12 Months Ended |
Dec. 31, 2020 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Other Financial Information | Other Financial Information 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 is classified as Level 1. The following table provides a reconciliation of cash, cash equivalents, restricted cash and restricted cash equivalents reported with the Consolidated Balance Sheets to the total of the same amounts shown in the Consolidated Statements of Cash Flows: December 31, (in millions) 2020 2019 Cash and cash equivalents $ 240 $ 75 Restricted cash and restricted cash equivalents (1) 15 26 Non-current restricted cash and restricted cash equivalents (2) — 10 Total cash, cash equivalents, restricted cash and restricted cash equivalents $ 255 $ 111 (1) Restricted cash and cash equivalents primarily represent amounts held in escrow in connection with the acquisitions of Core, Bai and Big Red, and have a corresponding holdback liability recorded in other current liabilities, as shown below. During the year ended December 31, 2020, the Company released restricted cash and cash equivalents and the corresponding holdback liability primarily related to the acquisition of Core, in accordance with the terms of the respective acquisition agreement. Refer to Note 5 for additional information. (2) Included within the Other non-current assets caption below. The following tables provide selected financial information from the Consolidated Balance Sheets: December 31, (in millions) 2020 2019 Inventories: Raw materials $ 260 $ 215 Work in process 6 8 Finished goods 520 447 Total 786 670 Allowance for excess and obsolete inventories (24) (16) Inventories $ 762 $ 654 Prepaid expenses and other current assets: Other receivables $ 85 $ 65 Customer incentive programs 34 12 Derivative instruments 45 31 Prepaid marketing 15 17 Spare parts 55 49 Assets held for sale (1) 2 165 Income tax receivable 11 4 Other 76 60 Total prepaid expenses and other current assets $ 323 $ 403 Other non-current assets: Customer incentive programs $ 70 $ 33 Marketable securities - trading 41 40 Operating lease right-of-use assets 645 497 Derivative instruments 12 19 Equity securities without readily determinable fair values 1 1 Non-current restricted cash and restricted cash equivalents — 10 Related party notes receivable (2) — 50 Other 125 98 Total other non-current assets $ 894 $ 748 (1) The decrease in assets held for sale was due to the assets included in sale-leaseback transactions that closed during the year ended December 31, 2020. Refer to Note 9 for additional information about the transactions. The remaining amounts were comprised of property, plant and equipment expected to be sold within the next twelve months. (2) Refer to Note 5 for information about the impairment of the Company's related party note receivable from Bedford. December 31, (in millions) 2020 2019 Accrued expenses: Customer rebates & incentives $ 382 $ 362 Accrued compensation 215 183 Insurance reserve 35 39 Interest accrual 57 54 Accrued professional fees 21 31 Other accrued expenses 330 270 Total accrued expenses $ 1,040 $ 939 Other current liabilities: Dividends payable $ 212 $ 212 Income taxes payable 39 75 Operating lease liability 72 69 Finance lease liability 44 41 Derivative instruments 25 12 Holdback liability 15 25 Other 9 11 Total other current liabilities $ 416 $ 445 Other non-current liabilities: Long-term pension and postretirement liability $ 38 $ 29 Insurance reserves 72 66 Operating lease liability 580 427 Finance lease liability 298 269 Derivative instruments 18 4 Deferred compensation liability 41 40 Other 72 95 Total other non-current liabilities $ 1,119 $ 930 ACCOUNTS PAYABLE KDP has an agreement with a third party which allows participating suppliers to track payment obligations 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 December 31, 2020 and 2019, $2,578 million and $2,097 million, respectively, of KDP's outstanding payment obligations were voluntarily elected by the supplier and sold to financial institutions. |
Commitments and Contingencies
Commitments and Contingencies | 12 Months Ended |
Dec. 31, 2020 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Commitments and Contingencies 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 was also 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 approval of the settlement in December 2020, and the Company paid the settlement amount in January 2021. Putative class members will now be given notice and the opportunity to object or opt out of the settlement. KDP intends to vigorously defend the remaining pending 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 notice to appeal, 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. ENVIRONMENTAL, HEALTH AND SAFETY MATTERS The Company operates many manufacturing, bottling and distribution facilities. In these and other aspects of the Company's business, it is subject to a variety of federal, state and local environmental, health and safety laws and regulations. The Company maintains environmental, health and safety policies and a quality, environmental, health and safety program designed to ensure compliance with applicable laws and regulations. However, the nature of the Company's business exposes it to the risk of claims with respect to environmental, health and safety matters, and there can be no assurance that material costs or liabilities will not be incurred in connection with such claims. The federal Comprehensive Environmental Response, Compensation and Liability Act of 1980, also known as the Superfund law, as well as similar state laws, generally impose joint and several liability for cleanup and enforcement costs on current and former owners and operators of a site without regard to fault or the legality of the original conduct. The Company was notified by the Environmental Protection Agency that it is a potentially responsible party for study and cleanup costs at a Superfund site in New Jersey. Investigation and remediation costs are yet to be determined, therefore no reasonable estimate exists on which to base a loss accrual. The Company participates in a study for this site with other potentially responsible parties. UNCONDITIONAL PURCHASE OBLIGATIONS As of December 31, 2020, KDP had $116 million in fixed service fee commitments related to a 15-year distribution agreement effective on December 28, 2020, with Veyron SPE. These commitments were used to assist Veyron SPE in obtaining financing. Such fixed service fee payments begin January 1, 2021. Fixed service fees over the next five years are expected to be as follows: For the Years Ending December 31, (in millions) 2021 2022 2023 2024 2025 Fixed service fees $ 8 $ 8 $ 8 $ 8 $ 8 FINANCIAL GUARANTEES ABC, a wholly-owned subsidiary of KDP, has provided a guarantee in connection with its distribution agreement with Veyron SPE to be paid only in the event Veyron SPE sells specific distribution rights and the value of those distribution rights does not exceed $142 million, which is the maximum undiscounted amount that KDP could pay under the guarantee. All obligations with respect to the guarantee will cease upon termination of the distribution agreement, which would occur upon notice by ABC not to renew the distribution agreement, KDP no longer being investment grade at the end of the term or the sale of the distribution rights by Veyron SPE. As of December 31, 2020, KDP has not recorded a liability as it is not probable that the Company will have to make any payments required under the residual value guarantee, as the fair value of the distribution rights is not expected to fall below $142 million over the next fifteen years. PRODUCT WARRANTIES KDP offers a one year warranty on all Keurig brewing systems it sells. KDP provides for the estimated cost of product warranties, primarily using historical information and current repair or replacement costs, at the time product revenue is recognized. Product warranties are included in accrued expenses in the accompanying Consolidated Balance Sheets. (in millions) Accrued Product Warranties Balance as of December 31, 2018 $ 8 Accruals for warranties issued 9 Settlements (9) Balance as of December 31, 2019 8 Accruals for warranties issued 15 Settlements (13) Balance as of December 31, 2020 $ 10 |
Related Parties
Related Parties | 12 Months Ended |
Dec. 31, 2020 | |
Related Party Transactions [Abstract] | |
Related Parties | Related Parties IDENTIFICATION OF RELATED PARTIES Prior to August 19, 2020, KDP was indirectly controlled by JAB, a privately held investor group. Since August 19, 2020, JAB continues to hold a significant but non-controlling interest in KDP. As of December 31, 2020, JAB beneficially owned approximately 34% 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 syrups and packaged beverages to Caribou Coffee Company, Inc., Panera Bread Company, Einstein Bros Bagels, and Krispy Kreme Doughnuts Inc. for resale to retail customers. KDP holds investments in certain brand ownership companies, and in certain instances, the Company also has rights in specified territories to bottle and/or distribute the brands owned by such companies. KDP purchases inventory from these brand ownership companies and sells finished product to third-party customers primarily in the U.S. Additionally, any transactions with significant partners in these investments, such as ABI, are considered related party transactions. ABI purchases Clamato from KDP and pays the Company a royalty for use of the brand name. Refer to Note 5 for additional information about the Company's investments in unconsolidated affiliates. RECEIPT AND PAYMENT TRANSACTIONS WITH RELATED PARTIES Trade accounts receivable, net from related parties were $18 million and $13 million as of December 31, 2020 and 2019, respectively, primarily related to product sales and royalty revenues. Accounts payable to related parties were $13 million and $18 million as of December 31, 2020 and 2019, respectively, primarily related to purchases of finished goods inventory for distribution. Receipts to and payments generated from these related parties were as follows: For the Year Ended December 31, (in millions) 2020 2019 2018 Receipts from related parties $ 112 $ 93 $ 214 Payments to related parties 73 57 150 |
Segments
Segments | 12 Months Ended |
Dec. 31, 2020 | |
Segment Reporting [Abstract] | |
Segments | Segments As of December 31, 2020 and 2019 and for the years ended December 31, 2020, 2019 and 2018, the Company's operating structure consisted of the following four operating segments: • 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 innovative single serve brewers and specialty coffee. • 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. • 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 CSD brands. • The Latin America Beverages segment reflects sales in Mexico, the Caribbean, and other international markets 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 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: For the Year Ended December 31, (in millions) 2020 2019 2018 Net sales Coffee Systems $ 4,433 $ 4,233 $ 4,114 Packaged Beverages 5,363 4,945 2,415 Beverage Concentrates 1,325 1,414 669 Latin America Beverages 497 528 244 Total net sales $ 11,618 $ 11,120 $ 7,442 Income from operations Coffee Systems $ 1,268 $ 1,219 $ 1,163 Packaged Beverages 822 757 257 Beverage Concentrates 932 955 430 Latin America Beverages 105 85 29 Unallocated corporate costs (647) (638) (642) Income from operations $ 2,480 $ 2,378 $ 1,237 December 31, (in millions) 2020 2019 Identifiable operating assets Coffee Systems $ 15,295 $ 15,230 Packaged Beverages 11,540 11,399 Beverage Concentrates 20,575 20,447 Latin America Beverages 1,763 1,856 Segment total 49,173 48,932 Unallocated corporate assets 518 435 Total identifiable operating assets 49,691 49,367 Investments in unconsolidated affiliates 88 151 Total assets $ 49,779 $ 49,518 GEOGRAPHIC DATA The following table presents information about the Company's operations by geographic region: For the Year Ended December 31, (in millions) 2020 2019 2018 Net sales U.S. $ 10,318 $ 9,843 $ 6,608 International 1,300 1,277 834 Net sales $ 11,618 $ 11,120 $ 7,442 December 31, (in millions) 2020 2019 Property, plant and equipment, net U.S. $ 1,893 $ 1,770 International 319 258 Total property, plant and equipment, net $ 2,212 $ 2,028 MAJOR CUSTOMER Walmart is considered a major customer, accounting for more than 10% of the Company's total net sales. The following table provides net sales for Walmart: For the Year Ended December 31, (in millions) 2020 2019 2018 Net sales Walmart $ 1,782 $ 1,483 $ 1,053 Additionally, customers in the Company's Beverage Concentrates segment buy concentrate from the Company, which is used in finished goods sold by the Company's third party bottlers to Walmart. These indirect sales further increase the concentration of risk associated with the Company's consolidated net sales as it relates to Walmart. |
Revenue Recognition
Revenue Recognition | 12 Months Ended |
Dec. 31, 2020 | |
Revenue from Contract with Customer [Abstract] | |
Revenue Recognition | Revenue Recognition The following table disaggregates the Company's revenue by portfolio: (in millions) Coffee Systems Packaged Beverages Beverage Concentrates Latin America Beverages Total For the Year Ended December 31, 2020 CSD (1) $ — $ 2,489 $ 1,304 $ 361 $ 4,154 NCB (1) — 2,477 10 135 2,622 K-cup pods (2) 3,369 — — — 3,369 Appliances 850 — — — 850 Other 214 397 11 1 623 Net sales $ 4,433 $ 5,363 $ 1,325 $ 497 $ 11,618 For the Year Ended December 31, 2019 CSD (1) $ — $ 2,219 $ 1,385 $ 380 $ 3,984 NCB (1) — 2,317 13 146 2,476 K-cup pods (2) 3,293 — — — 3,293 Appliances 723 — — — 723 Other 217 409 16 2 644 Net sales $ 4,233 $ 4,945 $ 1,414 $ 528 $ 11,120 For the Year Ended December 31, 2018 CSD (1) $ — $ 1,084 $ 656 $ 174 $ 1,914 NCB (1) — 1,153 6 69 1,228 K-cup pods (2) 3,249 — — — 3,249 Appliances 643 — — — 643 Other 222 178 7 1 408 Net sales $ 4,114 $ 2,415 $ 669 $ 244 $ 7,442 (1) Represents net sales of owned and partner brands within the Company's portfolio. (2) Represents net sales from owned brands, |
Unaudited Quarterly Financial I
Unaudited Quarterly Financial Information (Notes) | 12 Months Ended |
Dec. 31, 2020 | |
Quarterly Financial Information Disclosure [Abstract] | |
Quarterly Financial Information [Text Block] | Unaudited Quarterly Financial Information The following table presents unaudited quarterly financial information: (unaudited, in millions, except per share data) First Quarter Second Quarter Third Quarter Fourth Quarter For the Year Ended December 31, 2020 Net sales $ 2,613 $ 2,864 $ 3,020 $ 3,121 Cost of sales 1,161 1,302 1,316 1,353 Gross profit 1,452 1,562 1,704 1,768 Selling, general and administrative expenses 1,028 1,001 949 1,000 Impairment of intangible assets — — — 67 Other operating (income) expense, net (42) — 2 1 Income from operations 466 561 753 700 Interest expense 153 157 148 146 Loss on early extinguishment of debt 2 2 — — Impairment of investments and note receivable 86 — 16 — Other expense (income), net 20 (4) 5 (4) Income before provision for income taxes 205 406 584 558 Provision for income taxes 49 108 141 130 Net income 156 298 443 428 Less: Net income attributable to non-controlling interest — — — — Net income attributable to KDP $ 156 $ 298 $ 443 $ 428 Earnings per common share: Basic $ 0.11 $ 0.21 $ 0.31 $ 0.30 Diluted 0.11 0.21 0.31 0.30 For the Year Ended December 31, 2019 Net sales $ 2,504 $ 2,812 $ 2,870 $ 2,934 Cost of sales 1,106 1,186 1,245 1,241 Gross profit 1,398 1,626 1,625 1,693 Selling, general and administrative expenses 911 1,028 1,012 1,011 Other operating (income) expense, net (11) 11 33 (31) Income from operations 498 587 580 713 Interest expense 169 170 158 157 Loss on early extinguishment of debt 9 — — 2 Other expense (income), net 5 1 9 4 Income before provision for income taxes 315 416 413 550 Provision for income taxes 85 102 109 144 Net income $ 230 $ 314 $ 304 $ 406 Earnings per common share: Basic $ 0.16 $ 0.22 $ 0.22 $ 0.29 Diluted 0.16 0.22 0.21 0.29 |
Background and Basis of Prese_2
Background and Basis of Presentation (Policies) | 12 Months Ended |
Dec. 31, 2020 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Nature of Operations [Text Block] | NATURE OF OPERATIONS Keurig Dr Pepper Inc. is a leading coffee and beverage company in North America with a diverse portfolio of flavored (non-cola) CSDs, specialty coffee, and NCBs, and is a leader in single serve coffee brewers in the U.S. and Canada. References in this Annual Report on Form 10-K to "KDP" or "the Company" refer to Keurig Dr Pepper Inc. and all wholly-owned subsidiaries included in the consolidated financial statements. Definitions of terms used in this Annual Report on Form 10-K are included within the Master Glossary. This Annual Report on Form 10-K 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. Effective September 18, 2020, at market close, the Company's common stock ceased to be listed on the New York Stock Exchange and on September 21, 2020, the following business day, KDP's common stock began trading on Nasdaq's Global Select Market at market open. The Company's stock ticker remains "KDP". |
Basis of Accounting [Text Block] | BASIS OF PRESENTATION For financial reporting and accounting purposes, Maple Parent Holdings Corp. was the acquirer of DPS upon completion of the DPS Merger. The consolidated financial statements as of December 31, 2020 and 2019 and for the years ended December 31, 2020, 2019 and 2018 include the results of operations of DPS subsequent to the DPS Merger, which was completed on July 9, 2018. The accompanying consolidated financial statements |
Consolidation, Policy [Policy Text Block] | 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 Consolidated Balance Sheets, and net earnings attributable to the non-controlling interests are presented separately in the 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 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 consolidated financial statements. |
Reclassification, Policy [Policy Text Block] | RECLASSIFICATIONS For the year ended December 31, 2020, the Company made certain reclassifications in the prior period presentations of the Consolidated Statements of Cash Flows to conform to the current year presentation. Consolidated Statements of Cash Flows The following table presents the reclassifications made to the Consolidated Statements of Cash Flows: Year Ended December 31, (in millions) Prior Presentation Revised Presentation 2019 2018 Net cash provided by operating activities: (Gain) loss on disposal of property, plant and equipment Other, net (Gain) loss on disposal of property, plant and equipment $ (14) $ 5 Amortization of deferred financing fees Amortization expense Other, net 13 15 Amortization of bond fair value Amortization expense Other, net 27 13 Net cash used in financing activities: Payment of deferred financing fees Deferred financing charges paid Other, net — (55) |
Fiscal Period, Policy [Policy Text Block] | FISCAL YEAR ENDKDP's fiscal year end is December 31, and its interim fiscal quarters are March 31, June 30, and September 30. KDP's significant subsidiary, Maple Parent Holdings Corp., has a fiscal year end of the last Saturday in December, and its interim fiscal quarters end every thirteenth Saturday. KDP does not adjust for the difference in fiscal year, as the difference is within the range permitted by the Exchange Act. |
Significant Accounting Polici_2
Significant Accounting Policies Significant Accounting Policies (Policies) | 12 Months Ended |
Dec. 31, 2020 | |
Accounting Policies [Abstract] | |
Use of Estimates, Policy [Policy Text Block] | USE OF ESTIMATES The process of preparing the Company's 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. |
New Accounting Pronouncements, Policy [Policy Text Block] | RECENTLY ISSUED ACCOUNTING STANDARDS In January 2020, the FASB issued 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 ("ASU 2020-01"). The objective of ASU 2020-01 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. ASU 2020-01 is effective for public companies for annual periods, and interim periods within those annual periods, beginning after December 15, 2020. The adoption of ASU 2020-01 will not materially impact KDP's consolidated financial statements. In March 2020, the FASB issued ASU 2020-04, Reference Rate Reform (Topic 848): Facilitation of the Effects of Reference Rate Reform on Financial Reporting ("ASU 2020-04"). The objective of ASU 2020-04 is to provide optional expedients and exceptions for applying U.S. GAAP to contracts, hedging relationships and other transactions that reference LIBOR or another reference rate expected to be discontinued because of reference rate reform. ASU 2020-04 is effective and can be elected for all entities from the issuance date of ASU 2020-04 through December 31, 2022. The Company is currently evaluating ASU 2020-04 but expects the impact to be immaterial to KDP's consolidated financial statements. RECENTLY ADOPTED PROVISIONS OF U.S. GAAP Credit Losses As of January 1, 2020, the Company adopted ASU 2016-13, Financial Instruments - Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments, which replaced the incurred loss methodology with an expected loss methodology. The objective of ASU 2016-13 was to provide for a new impairment model which requires measurement and recognition of current expected credit losses (CECL) for most financial assets held. The Company adopted ASU 2016-13 using the modified retrospective method for all financial assets measured at amortized cost, which means that results for reporting periods beginning after January 1, 2020 are presented under ASU 2016-13 while prior period amounts continue to be reported in accordance with previously applicable GAAP. Refer to the Trade Accounts Receivable and Allowance for Expected Credit Losses section above for required disclosures under ASU 2016-13. The adoption of ASU 2016-13 did not have an impact on the Company's consolidated financial statements. Other Accounting Standards As of January 1, 2020, the Company adopted ASU 2018-13, Fair Value Measurement (Topic 820): Disclosure Framework - Changes to the Disclosure Requirements for Fair Value Measurements |
Fair Value of Financial Instruments, Policy [Policy Text Block] | Fair Value Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. Based upon the transparency of inputs to the valuation of an asset or liability, a three-level hierarchy has been established for fair value measurements. The three-level hierarchy for disclosure of fair value measurements is as follows: Level 1 - Quoted market prices in active markets for identical assets or liabilities. Level 2 - Observable inputs such as quoted prices for similar assets or liabilities in active markets; quoted prices for identical or similar assets or liabilities in markets that are not active; and model-derived valuations in which all significant inputs and significant value drivers are observable in active markets. Level 3 - Valuations with one or more unobservable significant inputs that reflect the reporting entity's own assumptions. The fair value of Notes and marketable securities as of December 31, 2020 and 2019 are based on quoted market prices for publicly traded securities. The Company estimates fair values of financial instruments measured at fair value in the Company’s consolidated financial statements on a recurring basis to ensure they are calculated based on market rates to settle the instruments. These values represent the estimated amounts the Company would pay or receive to terminate agreements, taking into consideration current market rates and creditworthiness. As of December 31, 2020 and 2019, the Company did not have any assets or liabilities measured on a recurring basis without observable market values that would require a high level of judgment to determine fair value (Level 3). |
Fair Value Transfer, Policy [Policy Text Block] | Transfers between levels are recognized at the end of each reporting period. There were no transfers of financial instruments between the three levels of fair value hierarchy during the years ended December 31, 2020, 2019 and 2018. |
Business Combinations Policy [Policy Text Block] | Business Combinations The Company includes the results of operations of the acquired business in the Company’s consolidated financial statements prospectively from the acquisition date. The Company allocates the purchase consideration to the assets acquired and liabilities assumed in the acquired entity generally based on their fair values at the acquisition date. The excess of the fair value of purchase consideration over the fair value of these assets acquired and liabilities assumed in the acquired entity is recorded as goodwill. During the measurement period, the Company will continue to obtain information to assist in determining the fair value of net assets acquired, which may differ materially from these preliminary estimates. Measurement period adjustments, if applicable, will be applied in the reporting period in which the adjustment amounts are determined. Transaction expenses are recognized separately from the business combination and are expensed as incurred. These charges primarily include direct third-party professional fees for advisory and consulting services and other incremental costs related to the acquisition. |
Cash and Cash Equivalents, Policy [Policy Text Block] | Cash and Cash Equivalents Cash and cash equivalents include cash and investments in short-term, highly liquid securities, with original maturities of three months or less. The Company is exposed to potential risks associated with its cash and cash equivalents. The Company places its cash and cash equivalents with high credit quality financial institutions. Deposits with these financial institutions may exceed the amount of insurance provided; however, these deposits typically are redeemable upon demand and, therefore, the Company believes the financial risks associated with these financial instruments are minimal. |
Trade and Other Accounts Receivable, Policy [Policy Text Block] | Trade Accounts Receivable and Allowance for Expected Credit Losses Trade accounts receivable are recorded at the invoiced amount and do not bear interest. The Company is exposed to potential credit risks associated with its accounts receivable, as it generally does not require collateral on its accounts receivable. The Company determines the required allowance for expected credit losses using information such as its customer credit history and financial condition, industry and market segment information, credit reports, and economic trends and conditions such as the impacts of COVID-19 in the year ended December 31, 2020. Allowances can be affected by changes in the industry, customer credit issues or customer bankruptcies or expectations of any such events in a future period when reasonable and supportable. Historical information is utilized beyond reasonable and supportable forecast periods. Amounts are charged against the allowance when it is determined that expected credit losses may occur. Activity in the allowance for expected credit loss accounts was as follows: For the Year Ended December 31, (in millions) 2020 2019 2018 Balance, beginning of the period $ 9 $ 8 $ 2 Charges to bad debt expense 17 2 5 Write-offs and adjustments (5) (1) 1 Balance, end of the period $ 21 $ 9 $ 8 The majority of the Company's customers are located in the U.S. and Canada. Concentration of credit risk with respect to accounts receivable is limited due to the large number of customers in various channels comprising the Company's customer base. Walmart is a major customer as of December 31, 2020 and 2019 as described in Note 18. As of December 31, 2020 and 2019, Walmart accounted for approximately $184 million and $152 million of trade receivables, respectively, which exceeded 10% of the Company's total trade accounts receivabl e. |
Inventory, Policy [Policy Text Block] | Inventories Inventories consist of raw materials, work in process and finished goods. Raw materials include various commodity costs for the Company's ingredients and materials sourced from various providers. The costs of finished goods inventories manufactured by the Company include raw materials, direct labor and indirect production and overhead costs. Finished goods also include the purchases of brewing systems from third-party manufacturers and beverages from partner brands. Inventories are stated at the lower of cost or net realizable value. Cost is measured using standard cost method which approximates first-in, first-out. The Company regularly reviews whether the net realizable value of its inventory is lower than its carrying value. If the valuation shows that the net realizable value is lower than the carrying value, the Company takes a charge to cost of sales and directly reduces the carrying value of the inventory. |
Property, Plant and Equipment, Policy [Policy Text Block] | Property, Plant and Equipment, Net Property, plant and equipment is stated at cost plus capitalized interest on borrowings during the actual construction period of major capital projects, net of accumulated depreciation. Significant improvements which substantially extend the useful lives of assets are capitalized and expenditures for repairs and maintenance which do not improve or extend the life of the assets are expensed as incurred. The Company capitalizes certain computer software and software development costs incurred in connection with developing or obtaining computer software for internal use, which are included in property, plant and equipment. When property, plant and equipment is sold, the costs and the related accumulated depreciation are removed from the accounts, and any net gain or loss is recorded in Other operating (income) expense, net in the Consolidated Statements of Income. For financial reporting purposes, depreciation is computed on the straight-line method over the estimated useful asset lives as follows: Type of Asset Useful Life Buildings and improvements 3 to 40 years Machinery and equipment 2 to 20 years Cold drink equipment 2 to 7 years Computer software 2 to 8 years Leasehold improvements, which are primarily considered building improvements, are depreciated over the shorter of the estimated useful life of the assets or the lease term. Estimated useful lives are periodically reviewed and, when warranted, are updated. |
Property, Plant and Equipment, Impairment [Policy Text Block] | The Company periodically reviews long-lived assets for impairment whenever events or changes in circumstances indicate that their carrying amount may not be recoverable. In order to assess recoverability, the Company compares the estimated undiscounted future pre-tax cash flows from the use of the group of assets, as defined, to the carrying amount of such assets. Measurement of an impairment loss is based on the excess of the carrying amount of the group of assets over the long-lived asset's fair value. For the years ended December 31, 2020 and 2019, the Company recorded an impairment loss of $1 million and $24 million, respectively and no impairment loss for the year ended December 31, 2018. Impairment loss is recorded in Other expense (income), net, net in the Consolidated Statements of Income. |
Lessee, Leases [Policy 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 us 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 certain manufacturing properties that contain a residual value guarantee at the end of the term. Operating leases are included within other non-current assets, other current liabilities, and other non-current liabilities within our Consolidated Balance Sheets. Finance leases are included within Property, plant and equipment, net, other current liabilities, and other non-current liabilities. Leases with an initial term of 12 months or less are not recognized on the Consolidated Balance Sheets. Right of use assets and lease liabilities are recognized in the Consolidated Balance Sheets at the present value of future minimum lease payments over the lease term on the commencement date. When the rate implicit in the lease is not provided to the Company, KDP will use its incremental borrowing rate based on information available at the commencement date to determine the present value of future minimum lease payments. KDP's incremental borrowing rate is determined using a portfolio of secured borrowing rates commensurate with the term of the lease and is reassessed on a quarterly basis. KDP has lease agreements with lease and non-lease components, which are generally accounted for as a single lease component. |
Investment, Policy [Policy Text Block] | Investments Deferred Compensation Plan The Company has a U.S. non-qualified defined contribution plan. Employee and employer matching contributions under the non-qualified defined contribution plan are maintained in a rabbi trust and are not readily available to us. The rabbi trust consists of readily marketable equity securities, which are included in Other non-current assets in the Consolidated Balance Sheets. Gains or losses from such investments are classified as trading and are charged to Other expense (income), net in the Consolidated Statements of Income. The corresponding deferred compensation liability is included in Other non-current liabilities in the Consolidated Balance Sheets, with changes in this obligation recognized as adjustments to compensation expense and recorded in SG&A expenses. Investments in Other Equity Securities 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 Consolidated Balance Sheets, and net earnings attributable to the non-controlling interests are presented separately in the Consolidated Statements of Income. The Company also holds non-controlling investments in certain privately held entities which are accounted for as equity method investments or equity securities without readily determinable value. The companies over which we exert significant influence, but do not control the financial and operating decisions, are accounted for as equity method investments. The Company's equity method investments are reported at cost and adjusted each period for the Company’s share of the investee’s net income (loss) and dividends paid, if any. The Company's proportionate share of the net income (loss) resulting from these investments is recorded in Other expense (income), net in the Consolidated Statements of Income. Any gains and losses resulting from the sale of these investments are recorded in Other expense (income), net. The carrying value of the Company's equity method investments is reported in Investments in unconsolidated affiliates in the Company's Consolidated Balance Sheets. The Company classifies distributions received from equity-method investments using the cumulative earnings approach on the Consolidated Statements of Cash Flows. Other investments that are not controlled, and over which we do not have the ability to exercise significant influence, are accounted for as equity securities without readily determinable value at cost and reported in Other non-current assets in the Company's Consolidated Balance Sheets. Any gains or losses resulting from the sales of these investments are recorded in Other operating (income) expense, net, in the Consolidated Statements of Income. The Company's non-controlling investments in certain privately held entities do not have readily determinable fair values and are periodically evaluated for impairment. An impairment loss would be recorded whenever a decline in value of an investment below its carrying amount is determined to be other than temporary. |
Goodwill and Intangible Assets, Policy [Policy Text Block] | Goodwill and Other Intangible Assets The Company classifies other intangible assets into two categories: • intangible assets with definite lives subject to amortization, and • intangible assets with indefinite lives not subject to amortization. The majority of the Company 's intangible asset balance is made up of brands which the Company has determined to have indefinite useful lives. In arriving at the conclusion that a brand has an indefinite useful life, management reviews factors such as size, diversification and market share of each brand. Management expects to acquire, hold and support brands for an indefinite period through consumer marketing and promotional support. The Company also considers factors such as its ability to continue to protect the legal rights that arise from these intangible assets indefinitely or the absence of any regulatory, economic or competitive factors that could truncate the life of these intangible assets. If the criteria are not met to assign an indefinite life, the brand is amortized over its expected useful life. Identifiable intangible assets deemed by the Company to have determinable finite useful lives are amortized on a straight-line basis over the period of which the expected economic benefit is derived. The estimated useful lives of the Company's intangible assets with definite lives are as follows: Type of Asset Useful Life Acquired technology 20 years Customer relationships 8 to 40 years Trade names 10 years Distribution rights 3 to 10 years Brands 5 years Contractual arrangements 10 to 12 years For intangible assets with definite lives, tests for impairment are performed if conditions exist that indicate the carrying value may not be recoverable. For goodwill and indefinite-lived intangible assets, the Company conducts tests for impairment annually on the first day of the fourth quarter, or more frequently if events or circumstances indicate the carrying amount may not be recoverable. The tests for impairment include significant judgment in estimating the fair value of reporting units and intangible assets. Management's estimates of fair value, which fall under Level 3 and are non-recurring, are based on historical and forecasted revenues and profit performance and discount rates. Fair value is based on what the reporting units and intangible assets would be worth to a third party market participant. Discount rates are based on a weighted average cost of equity and cost of debt, adjusted with various risk premiums. Goodwill is assigned to reporting units for purposes of impairment testing. A reporting unit is the same as an operating segment or one level below an operating segment. KDP's six reporting units are as follows: Segments Reporting Units Packaged Beverages DSD WD Coffee Systems Coffee Systems US Coffee Systems Canada Beverage Concentrates Beverage Concentrates Latin America Beverages Latin America Beverages If the carrying value of the reporting unit or intangible asset exceeds its fair value, an impairment charge will be recorded in current earnings for the difference up to the carrying value of the goodwill or intangible asset recorded. Refer to Note 4 for additional information. |
Deferred Charges, Policy [Policy Text Block] | Capitalized Customer Incentive Programs The Company provides support to certain customers to cover various programs and initiatives to increase net sales, including contributions to customers or vendors for cold drink equipment used to market and sell the Company 's products. These programs and initiatives generally directly benefit the Company over a period of time. Accordingly, costs of these programs and initiatives are recorded in Prepaid expenses and other current assets and Other non-current assets in the Consolidated Balance Sheets. Refer to Note 15 for additional information. The costs for these programs are amortized over the period to be directly benefited based upon a methodology consistent with the Company |
Structured Payables Policy [Policy Text Block] | Structured Payables The Company entered into an agreement with a supply chain payment processing intermediary, for the intermediary to act as a virtual credit card sponsor, whereby the card sponsor will pay amounts on behalf of the Company and sell the amounts due from the Company to a participating financial institution. The card sponsor will then bill the Company the original payment amount. The agreement permits the Company to utilize the third party and participating financial institutions to make a broad range of payments, including commercial payables to suppliers, business acquisitions, purchases of property, plant and equipment, and employee-related payments. Structured payables have equal priority with accounts payable and are treated as non-recourse obligations. The Company records interest for the period the structured payables obligation is outstanding and reflects the proceeds and payments related to these transactions as a financing activity on the Consolidated Statements of Cash Flows. |
Pension and Other Postretirement Plans, Policy [Policy Text Block] | Pension and Post-retirement Medical Benefits The Company has U.S. and foreign pension and PRMB plans which provide benefits to a defined group of employees who satisfy age and length of service requirements at the discretion of the Company. As of December 31, 2020, the Company has several stand-alone non-contributory defined benefit plans and PRMB plans. Depending on the plan, pension and PRMB benefits are based on a combination of factors, which may include salary, age and years of service. Employee pension and PRMB plan obligations and the associated expense included in the consolidated financial statements are determined from actuarial analyses based on plan assumptions, employee demographic data, years of service, compensation, benefits and claims paid and employer contributions. Non-cash settlement charges occur when the total amount of lump sum payments made to participants of various U.S. defined pension plans exceed the estimated annual interest and service costs. The components of net periodic benefit cost other than the service cost component are included in Other expense (income), net, in the Company's Consolidated Statements of Income. The service cost component is included in either Cost of sales or SG&A expenses, depending on the classification of the employee's other compensation costs. The Company's objective with respect to the funding of its pension plans is to provide adequate assets for the payment of future benefits. Pursuant to this objective, the Company will fund the pension plans as required by governmental regulations and may consider discretionary contributions as conditions warrant. |
Debt, Policy [Policy Text Block] | Voluntary Prepayment of Term LoansThe Company has the ability to voluntarily prepay its senior unsecured term loan facilities in whole or in part with prior notice to JPMorgan. The prepayment of the senior unsecured term loan facilities does not result in any additional fees or penalties, just the payment of daily accrued interest at the agreed upon rate. As the Company periodically prepays its senior unsecured term loan facilities, the Company has presented these voluntary prepayments as an early extinguishment of debt and expense the proportionate amount of unamortized deferred financing costs, as the loan has been partially settled. |
Liability Reserve Estimate, Policy [Policy Text Block] | Risk Management Programs The Company retains selected levels of property, casualty, workers' compensation, health, cyber and other business risks. Many of these risks are covered under conventional insurance programs with deductibles or self-insured retentions. Accrued liabilities related to the retained casualty and health risks are calculated based on loss experience and development factors, which contemplate a number of variables including claim history and expected trends, and are recorded in Other current liabilities and Other non-current liabilities in the Consolidated Balance Sheets |
Income Tax, Policy [Policy Text Block] | Income Taxes Income taxes are accounted for using the asset and liability approach, which involves determining the temporary differences between assets and liabilities recognized for financial reporting and the corresponding amounts recognized for tax purposes and computing the tax-related carryforwards at the enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be reversed. The resulting amounts are deferred tax assets or liabilities. The total of taxes currently payable per the tax return, the deferred tax expense or benefit and the impact of uncertain tax positions represents the income tax expense or benefit for the year for financial reporting purposes. The Company periodically assesses the likelihood of realizing its deferred tax assets based on the amount that the Company believes is more likely than not to be realized. The Company bases its judgment of the recoverability of its deferred tax assets primarily on historical earnings, its estimate of current and expected future earnings and prudent and feasible tax planning strategies. The Company establishes income tax liabilities to remove some or all of the income tax benefit of any of the Company's income tax positions at the time the Company determines that the positions become uncertain based upon one of the following: (1) the tax position is not "more likely than not" to be sustained, (2) the tax position is "more likely than not" to be sustained, but for a lesser amount, or (3) the tax position is "more likely than not" to be sustained, but not in the financial period in which the tax position was originally taken. The Company's evaluation of whether or not a tax position is uncertain is based on the following: (1) the Company presumes the tax position will be examined by the relevant taxing authority such as the IRS that has full knowledge of all relevant information, (2) the technical merits of a tax position are derived from authorities such as legislation and statutes, legislative intent, regulations, rulings and case law and their applicability to the facts and circumstances of the tax position, and (3) each tax position is evaluated without considerations of the possibility of offset or aggregation with other tax positions taken. The Company adjusts these income tax liabilities when the Company's judgment changes as a result of new information. Any change will impact income tax expense in the period in which such determination is made. |
Derivatives, Policy [Policy Text Block] | Derivative Instruments 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. The Company records all derivative instruments on a gross basis, including those subject to master netting arrangements. 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. |
Revenue Recognition, Policy [Policy Text Block] | Revenue RecognitionThe Company recognizes revenue when performance obligations under the terms of a contract with the customer are satisfied. Branded product sales, which include CSDs, NCBs, K-Cup pods, appliances and other, 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. These incentives and discounts include cash discounts, price allowances, volume-based rebates, product placement fees and other financial support for items such as trade promotions, displays, new products, consumer incentives and advertising assistance. Accruals are established for the expected payout based on contractual terms, volume-based metrics and/or historical trends and require management judgment with respect to estimating customer participation and performance levels. 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. |
Cost of Sales, Policy [Policy Text Block] | Cost of Sales Cost of goods sold includes all costs to acquire and manufacture the Company's products including raw materials, direct and indirect labor, manufacturing overhead, including depreciation expense, and all other costs incurred to bring the product to salable condition. All other costs incurred after this condition is met are considered selling costs and included in SG&A expenses. |
Standard Product Warranty, Policy [Policy Text Block] | Product Warranties |
Transportation and warehousing costs, policy | Transportation and Warehousing CostsThe Company incurred $1,326 million, $1,181 million and $695 million of transportation and warehousing costs during the years ended December 31, 2020, 2019 and 2018, respectively. These amounts, which primarily relate to shipping and handling costs, are recorded in SG&A expenses in the Consolidated Statements of Income. |
Advertising Costs, Policy [Policy Text Block] | Advertising and Marketing Expense Advertising and marketing production costs related to television, print, radio and other marketing investments are expensed as of the first date the advertisement takes place. All other advertising and marketing costs are expensed as incurred. Advertising and marketing expenses were approximately $489 million, $670 million and $411 million for the years ended December 31, 2020, 2019 and 2018, respectively. Advertising and marketing expenses are recorded in SG&A expenses in the Consolidated Statements of Income. Prepaid advertising and marketing costs are recorded as Other current and Other non-current assets in the Consolidated Balance Sheets. |
Research and Development Expense, Policy [Policy Text Block] | Research and Development Costs Research and development costs are expensed when incurred and amounted to $69 million, $81 million and $64 million for the years ended December 31, 2020, 2019 and 2018. These expenses are recorded primarily in SG&A expenses in the Consolidated Statements of Income. |
Share-based Compensation, Option and Incentive Plans Policy [Policy Text Block] | Stock-Based Compensation Expense The Company recognizes compensation expense in the Consolidated Statements of Income related to the fair value of employee stock-based awards. Compensation cost is based on the grant-date fair value. The fair value of RSUs is determined based on the number of units granted and the grant date price of common stock. The fair value of PSUs is estimated at the date of grant using a Monte-Carlo simulation. Forfeitures are recognized as incurred. Stock-based compensation expense is recognized ratably over the vesting period in the Consolidated Statements of Income. Refer to Note 12 for additional information . |
Foreign Currency Transactions and Translations Policy [Policy Text Block] | Foreign Currency Translation and Transaction The Company translates assets and liabilities of our foreign subsidiaries from their respective functional currencies to U.S. dollars at the appropriate spot rates as of the balance sheet date. The functional currency of the Company's operations outside the U.S. is generally the local currency of the country where the operations are located, or U.S. dollars. The results of operations are translated into U.S. dollars at a monthly average rate, calculated using daily exchange rates. Differences arising from the translation of opening balance sheets of these entities to the rate at the end of the financial year are recognized in AOCI. The differences arising from the translation of foreign results at the average rate are also recognized in AOCI. Such translation differences are recognized as income or expense in the period in which the Company disposes of the operations. Transactions in foreign currencies are recorded at the approximate rate of exchange at the transaction date. Assets and liabilities resulting from these transactions are translated at the rate of exchange in effect at the balance sheet date. All such differences are recorded in Other expense (income), net in the Consolidated Statements of Income . |
New Accounting Pronouncements and Changes in Accounting Principles [Text Block] | RECENTLY ISSUED ACCOUNTING STANDARDS In January 2020, the FASB issued 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 ("ASU 2020-01"). The objective of ASU 2020-01 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. ASU 2020-01 is effective for public companies for annual periods, and interim periods within those annual periods, beginning after December 15, 2020. The adoption of ASU 2020-01 will not materially impact KDP's consolidated financial statements. In March 2020, the FASB issued ASU 2020-04, Reference Rate Reform (Topic 848): Facilitation of the Effects of Reference Rate Reform on Financial Reporting ("ASU 2020-04"). The objective of ASU 2020-04 is to provide optional expedients and exceptions for applying U.S. GAAP to contracts, hedging relationships and other transactions that reference LIBOR or another reference rate expected to be discontinued because of reference rate reform. ASU 2020-04 is effective and can be elected for all entities from the issuance date of ASU 2020-04 through December 31, 2022. The Company is currently evaluating ASU 2020-04 but expects the impact to be immaterial to KDP's consolidated financial statements. RECENTLY ADOPTED PROVISIONS OF U.S. GAAP |
Earnings Per Share, Policy [Policy Text Block] | Earnings per ShareBasic EPS is computed by dividing Net income attributable to KDP by the weighted average number of common shares outstanding for the period. Diluted EPS reflects the assumed conversion of all dilutive securities. |
Commitments and Contingencies, Policy | Legal Matters The Company is involved from time to time in various claims, proceedings, and litigation, including those described in Note 16. The Company establishes reserves for specific legal proceedings when it determines that the likelihood of an unfavorable outcome is probable and the amount of loss can be reasonably estimated. Management has also identified certain other legal matters where it believes an unfavorable outcome is reasonably possible and/or for which no estimate of possible losses can be made, and where applicable, the Company provides disclosure of such legal matters in Note 16. |
Fiscal Period, Policy [Policy Text Block] | FISCAL YEAR ENDKDP's fiscal year end is December 31, and its interim fiscal quarters are March 31, June 30, and September 30. KDP's significant subsidiary, Maple Parent Holdings Corp., has a fiscal year end of the last Saturday in December, and its interim fiscal quarters end every thirteenth Saturday. KDP does not adjust for the difference in fiscal year, as the difference is within the range permitted by the Exchange Act. |
Costs Associated with Exit or Disposal Activity or Restructuring | Integration and Restructuring 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, the Company's restructuring activities, which do not qualify as exit and disposal costs, such as accelerated depreciation, asset impairments, implementation costs and other incremental costs. The Company has recorded these costs within SG&A expenses on the Consolidated Statements of Income, and these costs are held within unallocated corporate costs. |
Background and Basis of Prese_3
Background and Basis of Presentation (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Reclassifications [Table Text Block] | Consolidated Statements of Cash Flows The following table presents the reclassifications made to the Consolidated Statements of Cash Flows: Year Ended December 31, (in millions) Prior Presentation Revised Presentation 2019 2018 Net cash provided by operating activities: (Gain) loss on disposal of property, plant and equipment Other, net (Gain) loss on disposal of property, plant and equipment $ (14) $ 5 Amortization of deferred financing fees Amortization expense Other, net 13 15 Amortization of bond fair value Amortization expense Other, net 27 13 Net cash used in financing activities: Payment of deferred financing fees Deferred financing charges paid Other, net — (55) |
Significant Accounting Polici_3
Significant Accounting Policies (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Accounting Policies [Abstract] | |
PropertyPlantAndEquipmentUsefulLives [Table Text Block] | For financial reporting purposes, depreciation is computed on the straight-line method over the estimated useful asset lives as follows: Type of Asset Useful Life Buildings and improvements 3 to 40 years Machinery and equipment 2 to 20 years Cold drink equipment 2 to 7 years Computer software 2 to 8 years |
DefiniteLivedIntangibleUsefulLives [Table Text Block] | The estimated useful lives of the Company's intangible assets with definite lives are as follows: Type of Asset Useful Life Acquired technology 20 years Customer relationships 8 to 40 years Trade names 10 years Distribution rights 3 to 10 years Brands 5 years Contractual arrangements 10 to 12 years |
Financing Receivable, Current, Allowance for Credit Loss | Activity in the allowance for expected credit loss accounts was as follows: For the Year Ended December 31, (in millions) 2020 2019 2018 Balance, beginning of the period $ 9 $ 8 $ 2 Charges to bad debt expense 17 2 5 Write-offs and adjustments (5) (1) 1 Balance, end of the period $ 21 $ 9 $ 8 |
Long-term Obligations and Bor_2
Long-term Obligations and Borrowing Arrangements (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Debt Disclosure [Abstract] | |
Schedule of debt | The following table summarizes the Company's long-term obligations: December 31, (in millions) 2020 2019 Senior unsecured notes $ 13,065 $ 11,802 Term loans 423 1,372 Subtotal 13,488 13,174 Less - current portion (2,345) (347) Long-term obligations $ 11,143 $ 12,827 |
Schedule of short-term borrowings and current portion of long-term borrowings | The following table summarizes the Company's short-term borrowings and current portion of long-term obligations: December 31, (in millions) 2020 2019 Commercial paper notes $ — $ 1,246 Current portion of long-term obligations: Senior unsecured notes 2,246 250 Term loans 99 97 Short-term borrowings and current portion of long-term obligations $ 2,345 $ 1,593 The following table provides information about the Company's weighted average borrowings under its commercial paper program: For the Year Ended December 31, (in millions, except %) 2020 2019 2018 (1) Weighted average commercial paper borrowings $ 789 $ 1,754 $ 1,309 Weighted average borrowing rates 1.24 % 2.56 % 2.53 % |
Schedule of long-term debt instruments | The Company's Notes consisted of the following: (in millions) December 31, Issuance Maturity Date Rate 2020 2019 2020 Notes (1) January 15, 2020 2.000% — 250 2021 Merger Notes May 25, 2021 3.551% 1,750 1,750 2021-A Notes November 15, 2021 3.200% 250 250 2021-B Notes November 15, 2021 2.530% 250 250 2022 Notes November 15, 2022 2.700% 250 250 2023 Merger Notes May 25, 2023 4.057% 2,000 2,000 2023 Notes December 15, 2023 3.130% 500 500 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 (2) May 1, 2030 3.200% 750 — 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 (2) May 1, 2050 3.800% 750 — Principal amount $ 13,225 $ 11,975 Adjustment from principal amount to carrying amount (3) (160) (173) Carrying amount $ 13,065 $ 11,802 (1) On January 15, 2020, the Company repaid the 2020 Notes at maturity, using commercial paper borrowings. (2) On April 13, 2020, the Company completed the issuance of $1.5 billion aggregate principal amount of senior unsecured notes consisting of $750 million aggregate principal amount of 3.200% senior unsecured notes due May 1, 2030 and $750 million aggregate principal amount of 3.800% senior unsecured notes due May 1, 2050. The discount associated with the 2030 Notes and the 2050 Notes was approximately $6 million. The net proceeds from the issuance were used to repay outstanding borrowings under the KDP Revolver. |
Schedule of line of credit facilities | The KDP Credit Agreements consisted of the following: December 31, (in millions) 2020 2019 Issuance Maturity Date Available Balances Carrying Value Carrying Value 2019 KDP Term Loan (1) February 2023 — 425 1,380 KDP Revolver (2) February 2023 2,400 — — 2020 364-Day Credit Agreement May 2021 1,500 — — Principal amount $ 425 $ 1,380 Unamortized debt issuance costs (2) (8) Carrying amount $ 423 $ 1,372 (1) During the year ended December 31, 2020, the Company prepaid $955 million of its outstanding obligations, of which $855 million were voluntary prepayments, under the 2019 KDP Term Loan using a combination of commercial paper and cash on hand. As a result of the voluntary prepayments, the Company recorded a $4 million loss on early extinguishment during the year ended December 31, 2020. (2) The KDP Revolver has $200 million letters of credit available, none of which were utilized as of December 31, 2020. |
Goodwill and Other Intangible_2
Goodwill and Other Intangible Assets (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
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 for the years ended December 31, 2020 and 2019 are as follows: Coffee Systems Packaged Beverages Beverage Concentrates Latin America Beverages Corporate Unallocated Total Balance as of December 31, 2018 $ 9,725 $ 4,878 $ 4,265 $ 618 $ 525 $ 20,011 Foreign currency translation 47 32 19 25 — 123 Acquisitions (1) 3 391 242 (73) (525) 38 Balance as of December 31, 2019 9,775 5,301 4,526 570 — 20,172 Foreign currency translation 20 13 10 (31) — 12 Balance as of December 31, 2020 $ 9,795 $ 5,314 $ 4,536 $ 539 $ — $ 20,184 |
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: December 31, 2020 December 31, 2019 Brands (1) $ 19,874 $ 19,948 Trade names 2,480 2,479 Contractual arrangements 123 122 Distribution rights (2) 57 16 Total $ 22,534 $ 22,565 (1) The decrease in brands with indefinite lives was due to $67 million impairment of the Bai brand, as well as a decrease of $7 million due to foreign currency translation during the year ended December 31, 2020. Refer to Impairment Analysis below for further details about the impairment of Bai. (2) The Company executed nine agreements to acquire distribution rights during the year ended December 31, 2020, which resulted in an increase of $41 million. This increase was partially offset by foreign currency translation. |
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: December 31, 2020 December 31, 2019 (in millions) Gross Amount Accumulated Amortization Net Amount Gross Amount Accumulated Amortization Net Amount Acquired technology $ 1,146 $ (328) $ 818 $ 1,146 $ (255) $ 891 Customer relationships 638 (135) 503 638 (102) 536 Trade names 127 (69) 58 128 (55) 73 Distribution rights 26 (6) 20 24 (1) 23 Contractual arrangements 24 (5) 19 24 (3) 21 Brands 21 (5) 16 10 (2) 8 Total $ 1,982 $ (548) $ 1,434 $ 1,970 $ (418) $ 1,552 |
Schedule of amortization expense for intangible assets with definite lives | Amortization expense for intangible assets with definite lives was as follows: Year Ended December 31, (in millions) 2020 2019 2018 Amortization expense for intangible assets with definite lives $ 133 $ 126 $ 121 |
Schedule of future amortization expense | Amortization expense of these intangible assets is expected to be as follows: For the Years Ending December 31, (in millions) 2021 2022 2023 2024 2025 Expected amortization expense for intangible assets with definite lives $ 133 $ 133 $ 132 $ 123 $ 111 |
Inputs in goodwill and other intangibles impairment analysis | The following table provides the range of rates used in the analysis as of October 1, 2020, 2019, and 2018: 2020 2019 2018 Rate Minimum Maximum Minimum Maximum Minimum Maximum Discount rates 6.0 % 10.0 % 7.3 % 13.0 % 8.5 % 9.5 % Long-term growth rates — % 3.5 % — % 2.5 % 0.9 % 2.4 % Royalty rates 1.0 % 10.0 % 1.0 % 10.0 % 1.0 % 7.0 % |
Results of intangible assets impairment analysis | The results of the impairment analysis of the Company's indefinite lived brands and trade names as of October 1, 2020, 2019, and 2018 are as follows: 2020 2019 2018 Headroom Percentage Carrying Value Fair Value Carrying Value Fair Value Carrying Value Fair Value (1) Brands Impairment (2) $ 482 $ 415 $ — $ — $ — $ — 0 - 25% 5,052 5,775 6,356 7,251 19,555 19,555 26 - 50% 2,261 2,993 12,319 17,303 — — In excess of 50% 11,946 19,835 1,188 1,988 — — $ 19,741 $ 29,018 $ 19,863 $ 26,542 $ 19,555 $ 19,555 Trade Names Impairment $ — $ — $ — $ — $ — $ — 0 - 25% 1 1 — — — — 26 - 50% — — — — — — In excess of 50% 2,479 6,990 2,479 6,650 2,479 4,600 $ 2,480 $ 6,991 $ 2,479 $ 6,650 $ 2,479 $ 4,600 (1) Due to the timing of the DPS Merger, the Company performed as a step 0 analysis on the indefinite lived brands as of October 1, 2018, which resulted in carrying value approximating fair value. (2) The impairment line represents the carrying value and fair value of Bai as of the October 1, 2020 measurement date, prior to the $67 million impairment recorded during the fourth quarter of 2020. |
Acquisitions and Investments _2
Acquisitions and Investments in Unconsolidated Subsidiaries (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Business Combinations [Abstract] | |
Schedule of business acquisitions, by acquisition | Under the acquisition method of accounting, total consideration exchanged was: (in millions) Aggregate fair value of DPS common stock $ 3,611 $103.75 per share special cash dividend (1) 18,818 Fair value of replacement equity awards (2) 53 Total consideration exchanged $ 22,482 (1) As a result of the DPS Merger, all DPS stock option awards, RSUs and PSUs which were unvested prior to the DPS Merger vested immediately as a result of the Change in Control (as defined in the terms of each individual award agreement). All such awards, except for the stock option awards and certain RSUs not yet released to the employee, received the special cash dividend of $103.75 per share, subject to any withholding of taxes required by law. These amounts were included within the special cash dividend. |
Schedule of recognized identified assets acquired and liabilities assumed | The following is a summary of the allocation of consideration exchanged to the estimated fair values of assets acquired and liabilities assumed in the DPS Merger: (in millions) Purchase Price Allocation Estimated Useful Life Cash and cash equivalents $ 147 Investments in unconsolidated subsidiaries 90 Property, plant and equipment 1,475 1 year - 41 years Other intangible assets Brands 19,556 n/a Contractual arrangements 127 n/a Customer relationships 390 10 years - 40 years Favorable leases 5 5 years - 12 years Long-term obligations (4,049) Capital lease and financing obligations (205) Acquired assets, net of assumed liabilities (1) 81 Deferred tax liabilities, net of deferred tax assets (2) (5,041) Goodwill (3) 9,906 Total consideration exchanged 22,482 Fair value of stock and replacement equity awards not converted to cash 3,643 Acquisition of business $ 18,839 (1) The Company valued WIP and finished goods inventory resulting in a step-up of $131 million which was recognized in the cost of goods sold for the year ended December 31, 2018 as the related inventory was sold during that period. (2) Net deferred tax liabilities represented the expected future tax consequences of temporary differences between the fair values of the assets acquired and liabilities assumed and their tax bases. (3) The goodwill recognized is attributable to operational and general and administrative cost synergies resulting from the warehouse and transportation integration, direct procurement savings on overlapping materials, purchasing scale on indirect spend categories and optimization of duplicate positions and processes. The Company may also recognize revenue synergies, driven by a strong portfolio of brands with exposure to higher growth segments and the ability to leverage the Company's collective distribution strength. The goodwill created in the DPS Merger is not deductible for tax purposes. The following is a summary of the allocation of consideration exchanged to the estimated fair values of assets acquired and liabilities assumed in the Big Red Acquisition: (in millions) Purchase Price Allocation Estimated Useful Life Cash and cash equivalents $ 3 Other intangible assets Brands 220 n/a Brands 11 5 years Contractual arrangements 6 12 years Customer relationships 1 8 years - 40 years Assumed liabilities, net of acquired assets (1) (48) Goodwill (2) 113 Total consideration exchanged 306 Less: Company's previous ownership interest 22 Less: Holdback placed in Escrow 15 Acquisition of business $ 269 (1) The Company valued WIP and finished goods inventory resulting in a step-up of $2 million which was recognized in the cost of goods sold for the year ended December 31, 2018 as the related inventory was sold during that period. (2) The goodwill recognized is attributable to operational and general and administrative cost synergies resulting from the warehouse and transportation integration, purchasing scale on various spend categories and optimization of duplicate positions and processes. The goodwill created in the Big Red Acquisition is not deductible for tax purposes. The following is a summary of the allocation of purchase price to the estimated fair values of assets acquired and liabilities assumed in the Core Acquisition: (in millions) Purchase Price Allocation Estimated Useful Life Cash and cash equivalents $ 10 Other intangible assets Brands 142 n/a Contractual arrangements 17 10 years Assumed liabilities, net of acquired assets (17) Goodwill (1) 362 Total purchase price $ 514 Company's previous ownership interest 31 Less: Holdback placed in Escrow 23 Acquisition of business $ 460 |
Equity method investments | The following table summarizes the Company's investments in unconsolidated affiliates: December 31, (in millions) Ownership Interest 2020 2019 BodyArmor 12.5 % $ 51 $ 52 Bedford 30.0 % — 46 Dyla LLC 12.4 % 12 13 Force Holdings LLC 33.3 % 5 5 Beverage startup companies (various) 15 30 Other (various) 5 5 Investments in unconsolidated affiliates $ 88 $ 151 |
Schedule of Transaction Costs | The following table provides information about the Company's transaction expenses associated with business combinations (completed or abandoned) incurred during the years ended December 31, 2020, 2019 and 2018: Year Ended December 31, (in millions) 2020 2019 2018 DPS Merger $ — $ 8 $ 158 Other transaction expenses — 17 4 Total transaction expenses incurred $ — $ 25 $ 162 |
Restructuring and Integration_2
Restructuring and Integration Costs (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Restructuring and Related Activities [Abstract] | |
Restructuring and related costs | Restructuring and integration charges incurred on the defined programs during the years ended December 31, 2020, 2019 and 2018 were as follows: Year Ended December 31, (in millions) 2020 2019 2018 Business realignment $ — $ — $ 2 Keurig K2.0 exit — 1 12 DPS Integration program 200 232 155 Other restructuring programs — — 1 Total restructuring and integration charges $ 200 $ 233 $ 170 |
Schedule of restructuring reserve by type of cost | R estructuring liabilities as of December 31, 2020 and 2019 , along with charges to expense, cash payments, and non-cash charges during the years ended December 31, 2020 and 2019, were as follows: (in millions) Workforce Reduction Costs Other (1) Total Balance as of December 31, 2018 $ 28 $ 1 $ 29 Charges to expense 31 — 31 Cash payments (44) — (44) Non-cash adjustment items — (1) (1) Balance as of December 31, 2019 15 — 15 Charges to expense 31 — 31 Cash payments (29) — (29) Non-cash adjustment items (3) — (3) Balance as of December 31, 2020 $ 14 $ — $ 14 (1) Primarily reflects activities associated with the closure of certain facilities, excluding contract termination costs, which include any associated asset write-downs and accelerated depreciation. |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Income Tax Disclosure [Abstract] | |
Schedule of income before provision for income taxes | Income before provision for income taxes was as follows: For the Year Ended December 31, (in millions) 2020 2019 2018 U.S. $ 1,367 $ 1,389 $ 635 International 386 305 156 Total $ 1,753 $ 1,694 $ 791 |
Schedule of components of income tax expense | The provision for income taxes has the following components: For the Year Ended December 31, (in millions) 2020 2019 2018 Current: Federal $ 297 $ 303 $ 183 State 103 98 62 International 79 62 38 Total current provision $ 479 $ 463 $ 283 Deferred: Federal $ (31) $ (31) $ (24) State (6) 1 (50) International (14) 7 (7) Total deferred provision $ (51) $ (23) $ (81) Total provision for income taxes $ 428 $ 440 $ 202 |
Schedule of effective income tax rate reconciliation | The following is a reconciliation of the provision for income taxes computed at the U.S. federal statutory tax rate to the provision for income taxes reported in the Consolidated Statements of Income: For the Year Ended December 31, (in millions) 2020 2019 2018 Statutory federal income tax rate 21.0 % 21.0 % 21.0 % State income taxes, net 4.0 % 3.7 % 5.4 % U.S. federal domestic manufacturing benefit — % — % (1.5) % Impact of non-U.S. Operations 0.2 % 0.3 % 0.1 % Tax credits (1.3) % (0.9) % (0.9) % Valuation allowance for deferred tax assets (1.1) % — % 2.0 % U.S. taxation of foreign earnings 1.6 % 1.5 % 1.8 % Deferred rate change 0.5 % (0.3) % (4.9) % State refund — % — % (0.4) % Uncertain tax positions (1.3) % — % 0.6 % U.S. federal provision to return 0.1 % (0.6) % (0.3) % Transaction costs — % — % 1.4 % Impact of the TCJA — % — % 0.5 % Other 0.7 % 1.3 % 0.7 % Total provision for income taxes 24.4 % 26.0 % 25.5 % |
Schedule of deferred tax assets and liabilities | Deferred tax assets and liabilities were comprised of the following: December 31, (in millions) 2020 2019 Deferred tax assets: Operating lease liability $ 161 $ 67 Net operating losses carryforwards 46 48 Tax credit carryforwards 54 56 Accrued expenses 153 118 Share-based compensation 36 24 Multi-year upfront payments 15 18 Equity method investments 29 — Other 27 36 Total deferred tax assets 521 367 Valuation allowances (51) (71) Total deferred tax assets, net of valuation allowances $ 470 $ 296 Deferred tax liabilities: Brands, trade names and other intangible assets $ (5,916) $ (5,913) Property, plant and equipment (293) (263) Derivative instruments (38) (48) Right of use assets (159) (64) Equity method investments — (1) Other (12) (8) Total deferred tax liabilities (6,418) (6,297) Net deferred tax liabilities $ (5,948) $ (6,001) |
Schedule of Unrecognized Tax Benefits Roll Forward [Table Text Block] | The following is a reconciliation of the changes in the gross balance of unrecognized tax benefits: For the Year Ended December 31, (in millions) 2020 2019 2018 Balance, beginning of the period $ 43 $ 50 $ 35 Increases related to tax positions taken during the current year 2 2 1 Increases related to tax positions taken during the prior year 2 3 12 Increases related to tax positions from acquisitions — — 13 Decreases related to settlements with taxing authorities (8) (8) (8) Decreases related to lapse of applicable statute of limitations (21) (4) (3) Balance, end of the period $ 18 $ 43 $ 50 |
Derivatives (Tables)
Derivatives (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Schedule of Derivative Instruments [Table Text Block] | The following table presents the notional amounts of the Company's outstanding derivative instruments by type: December 31, (in millions) 2020 2019 Interest rate contracts Receive-fixed, pay-variable interest rate swaps (1) $ — $ 50 Receive-variable, pay-fixed interest rate swaps (2) 450 575 FX contracts Forward contracts, not designated as hedging instruments 476 523 Forward contracts, designated as cash flow hedges 333 — Commodity contracts 450 150 (1) During the year ended December 31, 2020, the Company elected to terminate $50 million notional amount of receive-fixed, pay-variable interest rate swaps and received cash of $18 million. |
Schedule of derivative instruments in statement of financial position, fair value | The following table summarizes the fair value hierarchy and the location of the fair value of the Company's derivative instruments not designated as hedging instruments within the Consolidated Balance Sheets: December 31, (in millions) Fair Value Hierarchy Balance Sheet Location 2020 2019 Assets: Interest rate contracts 2 Prepaid expenses and other current assets $ — $ 1 Commodity contracts 2 Prepaid expenses and other current assets 45 30 Interest rate contracts 2 Other non-current assets — 18 Commodity contracts 2 Other non-current assets 12 1 Liabilities: Interest rate contracts 2 Other current liabilities $ 2 $ — FX forward contracts 2 Other current liabilities 6 2 Commodity contracts 2 Other current liabilities 5 10 Interest rate contracts 2 Other non-current liabilities 7 — FX forward contracts 2 Other non-current liabilities 9 3 Commodity contracts 2 Other non-current liabilities 2 1 Designated as Hedging Instruments The following table summarizes the fair value hierarchy and the location of the fair value of the Company's derivative instruments which are designated as hedging instruments within the Consolidated Balance Sheets: December 31, (in millions) Fair Value Hierarchy Balance Sheet Location 2020 2019 Liabilities: FX forward contracts 2 Other current liabilities $ 12 $ — |
Schedule of derivative instruments not designated as hedging instruments | The following table presents the amount of (gains) losses recognized in the 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. For the Year Ended December 31, (in millions) Income Statement Location 2020 2019 2018 Commodity contracts Cost of sales $ (35) $ (10) $ 42 Commodity contracts SG&A expenses 22 (15) 20 Interest rate contracts Interest expense 7 7 6 FX forward contracts Cost of sales (6) 5 — FX forward contracts Other expense (income), net 6 18 (27) |
Leases (Tables)
Leases (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Leases [Abstract] | |
Lease, Cost [Table Text Block] | The following table presents the components of lease cost: Year Ended December 31, (in millions) 2020 2019 Operating lease cost $ 113 $ 82 Finance lease cost Amortization of right-of-use assets 47 48 Interest on lease liabilities 14 15 Variable lease cost (1) 27 28 Short-term lease cost 1 5 Sublease income (2) (3) Total lease cost $ 200 $ 175 (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: Year Ended December 31, (in millions) 2020 2019 Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows from operating leases $ 103 $ 77 Operating cash flows from finance leases 14 15 Financing cash flows from finance leases 52 38 |
Lessee, Operating Lease, Liability, Maturity [Table Text Block] | Future minimum lease payments under non-cancellable leases as of December 31, 2020 were as follows: (in millions) Operating Leases Finance Leases 2021 $ 90 $ 58 2022 84 51 2023 75 48 2024 72 45 2025 65 42 Thereafter 444 183 Total future minimum lease payments 830 427 Less: imputed interest (178) (85) Present value of minimum lease payments $ 652 $ 342 |
Finance Lease, Liability, Maturity [Table Text Block] | Future minimum lease payments under non-cancellable leases as of December 31, 2020 were as follows: (in millions) Operating Leases Finance Leases 2021 $ 90 $ 58 2022 84 51 2023 75 48 2024 72 45 2025 65 42 Thereafter 444 183 Total future minimum lease payments 830 427 Less: imputed interest (178) (85) Present value of minimum lease payments $ 652 $ 342 |
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: December 31, 2020 2019 Weighted average discount rate Operating leases 4.3 % 4.6 % Finance leases 4.4 % 5.1 % Weighted average remaining lease term Operating leases 12 years 10 years Finance leases 11 years 12 years |
Employee Benefit Plans (Tables)
Employee Benefit Plans (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Retirement Benefits [Abstract] | |
Changes in Projected Benefit Obligations, Fair Value of Plan Assets, and Funded Status of Plan [Table Text Block] | The following table sets forth amounts recognized in the Company's financial statements and the pension plans' funded status: As of December 31, (in millions) 2020 2019 Projected Benefit Obligations Beginning balance $ 226 $ 206 Service cost 3 2 Interest cost 7 9 Actuarial losses, net 22 24 Benefits paid (4) (7) Impact of changes in FX rates (1) 1 Settlements (25) (9) Ending balance $ 228 $ 226 Fair Value of Plan Assets Beginning balance $ 204 $ 178 Actual return on plan assets 28 39 Employer contributions 1 2 Benefits paid (4) (7) Impact of changes in FX rates (1) 1 Settlements (25) (9) Ending balance $ 203 $ 204 Net liability recognized $ (25) $ (22) Non-current assets $ 11 $ 4 Current liability (1) (1) Non-current liability (35) (25) |
Schedule of Accumulated Benefit Obligations in Excess of Fair Value of Plan Assets [Table Text Block] | The following table summarizes key pension plan information regarding plans whose accumulated benefit obligations exceed the fair value of their respective plan assets: As of December 31, (in millions) 2020 2019 Aggregate projected benefit obligation $ 87 $ 97 Aggregate accumulated benefit obligation 84 96 Aggregate fair value of plan assets 61 71 |
Schedule of Net Benefit Costs [Table Text Block] | The following table summarizes the components of the Company's net periodic benefit cost: For the Year Ended December 31, (in millions) 2020 2019 2018 Service cost $ 3 $ 2 $ 1 Interest cost 7 9 5 Expected return on assets (8) (9) (5) Settlements (1) (1) — Total net periodic benefit costs $ 1 $ 1 $ 1 |
Schedule of Expected Benefit Payments [Table Text Block] | The following table summarizes the estimated future benefit payments for the Company's defined benefit plans: 2021 2022 2023 2024 2025 2026-2030 Estimated future benefit payments $ 11 $ 11 $ 12 $ 12 $ 12 $ 60 |
Schedule of Assumptions Used [Table Text Block] | The following table summarizes the weighted-average assumptions used to determine benefit obligations at the plan measurement dates for U.S. plans: As of December 31, 2020 2019 Weighted average discount rate 2.55 % 3.30 % Rate of increase in compensation levels 3.00 % 3.00 % The following table summarizes the weighted average actuarial assumptions used to determine the net periodic benefit costs for U.S. plans: For the Year Ended December 31, 2020 2019 2018 Weighted average discount rate 3.30 % 3.30 % 4.25 % Rate of increase in compensation levels 3.00 % 3.00 % 3.00 % Expected long-term rate of return 4.00 % 4.00 % 5.25 % For the Year Ended December 31, 2020 2019 Fixed income securities: Asset allocation assumption 80 % 80 % Expected long-term rate of return 3.4 % 3.1 % Equity securities: Asset allocation assumption 20 % 20 % Expected long-term rate of return 7.4 % 7.5 % |
Schedule of Allocation of Plan Assets [Table Text Block] | The following tables present the major categories of plan assets and the respective fair value hierarchy for the pension and PRMB plan assets: Fair Value Measurement as of December 31, 2020 2019 (in millions) Fair Value Hierarchy Level Pension Assets PRMB Assets Pension Assets PRMB Assets Cash and cash equivalents Level 1 $ 8 $ 1 $ 3 $ — U.S. equity securities (1)(2) Level 2 22 1 21 1 International equity securities (1)(2) Level 2 12 7 10 6 International fixed income securities (2) Level 2 4 — 15 — Fixed income securities (3) Level 2 157 1 155 1 Total $ 203 $ 10 $ 204 $ 8 (1) Equity securities are comprised of actively managed U.S. and international index funds. (2) The NAV is based on the fair value of the underlying assets owned by the equity index fund or fixed income investment vehicle per share, multiplied by the number of units held as of the measurement date. (3) Fixed income securities are comprised of a diversified portfolio of investment-grade corporate and government securities. Investments are provided by the investment managers using a unit price or NAV based on the fair value of the underlying investments. |
Schedule of Multiemployer Plans [Table Text Block] | The following table presents information about Central States as of December 31, 2020: Plan's employer identification number 36-6044243 Plan number 001 Expiration dates of collective bargaining agreements (1) February 17,2021 through January 20, 2025 Financial Improvement Plan/Rehabilitation Plan status pending/implemented Implemented Pension Protection Act zone status Red Surcharge imposed Yes (1) Central States includes seven collective bargaining agreements. The largest agreement, which is set to expire March 2, 2024, covers approximately 56% of the employees included in Central States. Two of the collective bargaining agreements are set to expire during 2021, covering approximately 6% of the employees included in Central States. Future estimated contributions to Central States based on the number of covered employees and the terms of the collective bargaining agreements are as follows: 2021 2022 2023 2024 2025 Future estimated contributions to Central States $ 2 $ 2 $ 2 $ 2 $ 2 |
Debt Securities, Trading, and Equity Securities, FV-NI [Table Text Block] | As such, the Company uses the fair value hierarchy to measure the fair value of these trading securities as follows: As of December 31, (in millions) Fair Value Hierarchy 2020 2019 Marketable securities - trading Level 1 $ 41 $ 40 |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Earnings Per Share [Abstract] | |
Schedule of earnings per share | The following table presents the Company's basic and diluted EPS and shares outstanding: For the Year Ended December 31, (in millions, except per share data) 2020 2019 2018 Basic EPS: Net income attributable to KDP $ 1,325 $ 1,254 $ 586 Weighted average common shares outstanding 1,407.2 1,406.7 1,086.3 Earnings per common share — basic $ 0.94 $ 0.89 $ 0.54 Diluted EPS: Net income attributable to KDP $ 1,325 $ 1,254 $ 586 Weighted average common shares outstanding 1,407.2 1,406.7 1,086.3 Effect of dilutive securities: Stock options 0.3 0.6 0.9 RSUs 14.6 11.8 10.4 Weighted average common shares outstanding and common stock equivalents 1,422.1 1,419.1 1,097.6 Earnings per common share — diluted $ 0.93 $ 0.88 $ 0.53 Anti-dilutive shares excluded from the diluted weighted average shares outstanding calculation 0.5 — 1.2 |
Stock Based Compensation (Table
Stock Based Compensation (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Share-based Payment Arrangement [Abstract] | |
Stock based compensation expense | The components of stock-based compensation expense are presented below: For the Year Ended December 31, (in millions) 2020 2019 2018 Total stock-based compensation expense $ 85 $ 64 $ 35 Income tax benefit recognized in the Statements of Income (13) (11) (7) Stock-based compensation expense, net of tax $ 72 $ 53 $ 28 |
RSU Activity | The table below summarizes RSU activity for the year ended December 31, 2020 : RSUs Weighted Average Grant Date Fair Value Weighted Average Remaining Contractual Term (Years) Aggregate Intrinsic Value (in millions) Balance as of December 31, 2019 21,492,786 $ 18.14 2.6 $ 622 Granted 8,542,934 24.91 — — Vested and released (97,681) 16.95 — 3 Forfeited (3,249,735) 23.52 — — Balance as of December 31, 2020 26,688,304 19.66 2.0 854 |
PSU Activity | The table below summarizes PSU activity for the year ended December 31, 2020 : PSUs Weighted Average Grant Date Fair Value Weighted Average Remaining Contractual Term (Years) Aggregate Intrinsic Value (in millions) Balance as of December 31, 2019 — $ — — $ — Granted 651,042 28.80 2.0 — Vested and released — — — — Forfeited — — — — Balance as of December 31, 2020 651,042 28.80 2.0 21 |
Stock Option Activity | The table below summarizes stock option activity for the year ended December 31, 2020 : Stock Options Weighted Average Exercise Price Weighted Average Remaining Contractual Term (Years) Aggregate Intrinsic Value (in millions) Balance as of December 31, 2019 338,814 $ 12.93 6.0 $ 5 Granted — — — — Exercised (143,242) 14.04 — 2 Outstanding as of December 31, 2020 195,572 12.11 4.7 4 Exercisable as of December 31, 2020 195,572 12.11 4.7 4 |
Share-Based Payment Arrangement, Schedule of Vesting Terms | RSUs generally vest on the following schedule: Period Granted Vesting Terms RSUs granted prior to the DPS Merger 4 years, 6 months term with cliff-vesting at the end of the term RSUs granted after the DPS Merger through 2019 5-year term with cliff-vesting at the end of the term RSUs granted during 2020 5-year term with graded vesting as follows: |
Accumulated Other Comprehensi_2
Accumulated Other Comprehensive Income (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
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 Pension and PRMB Liabilities (1) Cash Flow Hedges (2) AOCI Balance as of December 31, 2017 $ 99 $ — $ — $ 99 OCI before reclassifications (225) (4) — (229) Net current period other comprehensive loss (225) (4) — (229) Balance as of December 31, 2018 (126) (4) — (130) OCI before reclassifications 230 5 — 235 Amounts reclassified from AOCI — (1) — (1) Net current period other comprehensive income 230 4 — 234 Balance as of December 31, 2019 104 — — 104 OCI before reclassifications (9) (5) (16) (30) Amounts reclassified from AOCI — 1 2 3 Net current period other comprehensive income (9) (4) (14) (27) Balance as of December 31, 2020 $ 95 (4) $ (14) $ 77 (1) Amounts reclassified from AOCI during the period represent settlement gains (losses), which are recorded to SG&A expenses within the Consolidated Statements of Income. |
Property, Plant and Equipment_2
Property, Plant and Equipment (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Property, Plant and Equipment [Abstract] | |
Property, Plant and Equipment [Table Text Block] | Property, plant and equipment, net consisted of the following: December 31, (in millions) 2020 2019 Land $ 54 $ 55 Buildings and improvements 520 473 Machinery and equipment 1,870 1,636 Cold drink equipment 80 78 Software 315 241 Construction-in-progress 393 274 Property, plant and equipment, gross 3,232 2,757 Less: accumulated depreciation and amortization (1,020) (729) Property, plant and equipment, net $ 2,212 $ 2,028 |
Schedule of Depreciation Expense [Table Text Block] | The following table summarizes the location of depreciation expense within the Consolidated Statements of Income: For the Year Ended December 31, (in millions) 2020 2019 2018 Cost of sales $ 215 $ 199 $ 123 SG&A expenses 147 159 110 Total depreciation expense $ 362 $ 358 $ 233 |
Other Financial Information (Ta
Other Financial Information (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
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 Consolidated Balance Sheets to the total of the same amounts shown in the Consolidated Statements of Cash Flows: December 31, (in millions) 2020 2019 Cash and cash equivalents $ 240 $ 75 Restricted cash and restricted cash equivalents (1) 15 26 Non-current restricted cash and restricted cash equivalents (2) — 10 Total cash, cash equivalents, restricted cash and restricted cash equivalents $ 255 $ 111 (1) Restricted cash and cash equivalents primarily represent amounts held in escrow in connection with the acquisitions of Core, Bai and Big Red, and have a corresponding holdback liability recorded in other current liabilities, as shown below. During the year ended December 31, 2020, the Company released restricted cash and cash equivalents and the corresponding holdback liability primarily related to the acquisition of Core, in accordance with the terms of the respective acquisition agreement. Refer to Note 5 for additional information. (2) Included within the Other non-current assets caption below. |
Schedule of Restricted Cash and Cash Equivalents | The following table provides a reconciliation of cash, cash equivalents, restricted cash and restricted cash equivalents reported with the Consolidated Balance Sheets to the total of the same amounts shown in the Consolidated Statements of Cash Flows: December 31, (in millions) 2020 2019 Cash and cash equivalents $ 240 $ 75 Restricted cash and restricted cash equivalents (1) 15 26 Non-current restricted cash and restricted cash equivalents (2) — 10 Total cash, cash equivalents, restricted cash and restricted cash equivalents $ 255 $ 111 (1) Restricted cash and cash equivalents primarily represent amounts held in escrow in connection with the acquisitions of Core, Bai and Big Red, and have a corresponding holdback liability recorded in other current liabilities, as shown below. During the year ended December 31, 2020, the Company released restricted cash and cash equivalents and the corresponding holdback liability primarily related to the acquisition of Core, in accordance with the terms of the respective acquisition agreement. Refer to Note 5 for additional information. (2) Included within the Other non-current assets caption below. |
Schedule of Other Assets [Table Text Block] | The following tables provide selected financial information from the Consolidated Balance Sheets: December 31, (in millions) 2020 2019 Inventories: Raw materials $ 260 $ 215 Work in process 6 8 Finished goods 520 447 Total 786 670 Allowance for excess and obsolete inventories (24) (16) Inventories $ 762 $ 654 Prepaid expenses and other current assets: Other receivables $ 85 $ 65 Customer incentive programs 34 12 Derivative instruments 45 31 Prepaid marketing 15 17 Spare parts 55 49 Assets held for sale (1) 2 165 Income tax receivable 11 4 Other 76 60 Total prepaid expenses and other current assets $ 323 $ 403 Other non-current assets: Customer incentive programs $ 70 $ 33 Marketable securities - trading 41 40 Operating lease right-of-use assets 645 497 Derivative instruments 12 19 Equity securities without readily determinable fair values 1 1 Non-current restricted cash and restricted cash equivalents — 10 Related party notes receivable (2) — 50 Other 125 98 Total other non-current assets $ 894 $ 748 (1) The decrease in assets held for sale was due to the assets included in sale-leaseback transactions that closed during the year ended December 31, 2020. Refer to Note 9 for additional information about the transactions. The remaining amounts were comprised of property, plant and equipment expected to be sold within the next twelve months. (2) Refer to Note 5 for information about the impairment of the Company's related party note receivable from Bedford. |
Schedule of other assets and other liabilities | December 31, (in millions) 2020 2019 Accrued expenses: Customer rebates & incentives $ 382 $ 362 Accrued compensation 215 183 Insurance reserve 35 39 Interest accrual 57 54 Accrued professional fees 21 31 Other accrued expenses 330 270 Total accrued expenses $ 1,040 $ 939 Other current liabilities: Dividends payable $ 212 $ 212 Income taxes payable 39 75 Operating lease liability 72 69 Finance lease liability 44 41 Derivative instruments 25 12 Holdback liability 15 25 Other 9 11 Total other current liabilities $ 416 $ 445 Other non-current liabilities: Long-term pension and postretirement liability $ 38 $ 29 Insurance reserves 72 66 Operating lease liability 580 427 Finance lease liability 298 269 Derivative instruments 18 4 Deferred compensation liability 41 40 Other 72 95 Total other non-current liabilities $ 1,119 $ 930 |
Commitments and Contingencies (
Commitments and Contingencies (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Commitments and Contingencies Disclosure [Abstract] | |
Schedule of product warranty liability | (in millions) Accrued Product Warranties Balance as of December 31, 2018 $ 8 Accruals for warranties issued 9 Settlements (9) Balance as of December 31, 2019 8 Accruals for warranties issued 15 Settlements (13) Balance as of December 31, 2020 $ 10 |
Unrecorded Unconditional Purchase Obligations Text Block | Fixed service fees over the next five years are expected to be as follows: For the Years Ending December 31, (in millions) 2021 2022 2023 2024 2025 Fixed service fees $ 8 $ 8 $ 8 $ 8 $ 8 |
Related Parties (Tables) (Table
Related Parties (Tables) (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Related Party Transaction [Line Items] | |
Schedule of Related Party Transactions [Table Text Block] | Receipts to and payments generated from these related parties were as follows: For the Year Ended December 31, (in millions) 2020 2019 2018 Receipts from related parties $ 112 $ 93 $ 214 Payments to related parties 73 57 150 |
Segments (Tables)
Segments (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Segment Reporting [Abstract] | |
Schedule of segment reporting information, by segment | Information about the Company's operations by reportable segment is as follows: For the Year Ended December 31, (in millions) 2020 2019 2018 Net sales Coffee Systems $ 4,433 $ 4,233 $ 4,114 Packaged Beverages 5,363 4,945 2,415 Beverage Concentrates 1,325 1,414 669 Latin America Beverages 497 528 244 Total net sales $ 11,618 $ 11,120 $ 7,442 Income from operations Coffee Systems $ 1,268 $ 1,219 $ 1,163 Packaged Beverages 822 757 257 Beverage Concentrates 932 955 430 Latin America Beverages 105 85 29 Unallocated corporate costs (647) (638) (642) Income from operations $ 2,480 $ 2,378 $ 1,237 |
Reconciliation of operating profit (loss) from segments to consolidated | Information about the Company's operations by reportable segment is as follows: For the Year Ended December 31, (in millions) 2020 2019 2018 Net sales Coffee Systems $ 4,433 $ 4,233 $ 4,114 Packaged Beverages 5,363 4,945 2,415 Beverage Concentrates 1,325 1,414 669 Latin America Beverages 497 528 244 Total net sales $ 11,618 $ 11,120 $ 7,442 Income from operations Coffee Systems $ 1,268 $ 1,219 $ 1,163 Packaged Beverages 822 757 257 Beverage Concentrates 932 955 430 Latin America Beverages 105 85 29 Unallocated corporate costs (647) (638) (642) Income from operations $ 2,480 $ 2,378 $ 1,237 |
Reconciliation of assets from segment to consolidated | December 31, (in millions) 2020 2019 Identifiable operating assets Coffee Systems $ 15,295 $ 15,230 Packaged Beverages 11,540 11,399 Beverage Concentrates 20,575 20,447 Latin America Beverages 1,763 1,856 Segment total 49,173 48,932 Unallocated corporate assets 518 435 Total identifiable operating assets 49,691 49,367 Investments in unconsolidated affiliates 88 151 Total assets $ 49,779 $ 49,518 |
Revenue from external customers by geographic areas | The following table presents information about the Company's operations by geographic region: For the Year Ended December 31, (in millions) 2020 2019 2018 Net sales U.S. $ 10,318 $ 9,843 $ 6,608 International 1,300 1,277 834 Net sales $ 11,618 $ 11,120 $ 7,442 |
Major Customers | The following table provides net sales for Walmart: For the Year Ended December 31, (in millions) 2020 2019 2018 Net sales Walmart $ 1,782 $ 1,483 $ 1,053 |
Long-lived Assets by Geographic Areas | (in millions) |
Revenue Recognition (Tables)
Revenue Recognition (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
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 Year Ended December 31, 2020 CSD (1) $ — $ 2,489 $ 1,304 $ 361 $ 4,154 NCB (1) — 2,477 10 135 2,622 K-cup pods (2) 3,369 — — — 3,369 Appliances 850 — — — 850 Other 214 397 11 1 623 Net sales $ 4,433 $ 5,363 $ 1,325 $ 497 $ 11,618 For the Year Ended December 31, 2019 CSD (1) $ — $ 2,219 $ 1,385 $ 380 $ 3,984 NCB (1) — 2,317 13 146 2,476 K-cup pods (2) 3,293 — — — 3,293 Appliances 723 — — — 723 Other 217 409 16 2 644 Net sales $ 4,233 $ 4,945 $ 1,414 $ 528 $ 11,120 For the Year Ended December 31, 2018 CSD (1) $ — $ 1,084 $ 656 $ 174 $ 1,914 NCB (1) — 1,153 6 69 1,228 K-cup pods (2) 3,249 — — — 3,249 Appliances 643 — — — 643 Other 222 178 7 1 408 Net sales $ 4,114 $ 2,415 $ 669 $ 244 $ 7,442 (1) Represents net sales of owned and partner brands within the Company's portfolio. (2) Represents net sales from owned brands, |
Unaudited Quarterly Financial_2
Unaudited Quarterly Financial Information (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Quarterly Financial Information Disclosure [Abstract] | |
Quarterly Financial Information [Table Text Block] | The following table presents unaudited quarterly financial information: (unaudited, in millions, except per share data) First Quarter Second Quarter Third Quarter Fourth Quarter For the Year Ended December 31, 2020 Net sales $ 2,613 $ 2,864 $ 3,020 $ 3,121 Cost of sales 1,161 1,302 1,316 1,353 Gross profit 1,452 1,562 1,704 1,768 Selling, general and administrative expenses 1,028 1,001 949 1,000 Impairment of intangible assets — — — 67 Other operating (income) expense, net (42) — 2 1 Income from operations 466 561 753 700 Interest expense 153 157 148 146 Loss on early extinguishment of debt 2 2 — — Impairment of investments and note receivable 86 — 16 — Other expense (income), net 20 (4) 5 (4) Income before provision for income taxes 205 406 584 558 Provision for income taxes 49 108 141 130 Net income 156 298 443 428 Less: Net income attributable to non-controlling interest — — — — Net income attributable to KDP $ 156 $ 298 $ 443 $ 428 Earnings per common share: Basic $ 0.11 $ 0.21 $ 0.31 $ 0.30 Diluted 0.11 0.21 0.31 0.30 For the Year Ended December 31, 2019 Net sales $ 2,504 $ 2,812 $ 2,870 $ 2,934 Cost of sales 1,106 1,186 1,245 1,241 Gross profit 1,398 1,626 1,625 1,693 Selling, general and administrative expenses 911 1,028 1,012 1,011 Other operating (income) expense, net (11) 11 33 (31) Income from operations 498 587 580 713 Interest expense 169 170 158 157 Loss on early extinguishment of debt 9 — — 2 Other expense (income), net 5 1 9 4 Income before provision for income taxes 315 416 413 550 Provision for income taxes 85 102 109 144 Net income $ 230 $ 314 $ 304 $ 406 Earnings per common share: Basic $ 0.16 $ 0.22 $ 0.22 $ 0.29 Diluted 0.16 0.22 0.21 0.29 |
Background and Basis of Prese_4
Background and Basis of Presentation (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |||
Gain (Loss) on Disposition of Property Plant Equipment | $ 36 | $ 14 | $ (5) |
Amortization of Deferred Loan Origination Fees, Net | 13 | 15 | |
Amortization of Bond Fair Value | 27 | 13 | |
Payments of Financing Costs | $ 0 | $ (55) |
Significant Accounting Polici_4
Significant Accounting Policies (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2020 | Sep. 30, 2020 | Jun. 30, 2020 | Mar. 31, 2020 | Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Impairment of Long-Lived Assets Held-for-use | $ 1 | $ 24 | $ 0 | ||||||||
Selling, general and administrative expenses | $ 1,000 | $ 949 | $ 1,001 | $ 1,028 | $ 1,011 | $ 1,012 | $ 1,028 | $ 911 | 3,978 | 3,962 | 2,635 |
Marketing and Advertising Expense | 489 | 670 | 411 | ||||||||
Research and Development Expense | 69 | 81 | 64 | ||||||||
Allowance for Credit Losses [Roll Forward] | |||||||||||
Balance, beginning of the period | $ 9 | $ 8 | 9 | 8 | 2 | ||||||
Charges to bad debt expense | 17 | 2 | 5 | ||||||||
Write-offs and adjustments | (5) | (1) | 1 | ||||||||
Balance, end of the period | 21 | 9 | 21 | 9 | 8 | ||||||
Walmart [Member] | |||||||||||
Accounts Receivable, Net | $ 184 | $ 152 | $ 184 | 152 | |||||||
Minimum | Building and Building Improvements [Member] | |||||||||||
Property plant and equipment useful life | 3 years | ||||||||||
Minimum | Machinery and Equipment [Member] | |||||||||||
Property plant and equipment useful life | 2 years | ||||||||||
Minimum | Cold Drink Equipment [Member] | |||||||||||
Property plant and equipment useful life | 2 years | ||||||||||
Minimum | Computer Equipment and Software [Member] | |||||||||||
Property plant and equipment useful life | 2 years | ||||||||||
Maximum | Building and Building Improvements [Member] | |||||||||||
Property plant and equipment useful life | 40 years | ||||||||||
Maximum | Machinery and Equipment [Member] | |||||||||||
Property plant and equipment useful life | 20 years | ||||||||||
Maximum | Cold Drink Equipment [Member] | |||||||||||
Property plant and equipment useful life | 7 years | ||||||||||
Maximum | Computer Equipment and Software [Member] | |||||||||||
Property plant and equipment useful life | 8 years | ||||||||||
Acquired technology | |||||||||||
Finite-Lived Intangible Asset, Useful Life | 20 years | ||||||||||
Customer relationships | Minimum | |||||||||||
Finite-Lived Intangible Asset, Useful Life | 8 years | ||||||||||
Customer relationships | Maximum | |||||||||||
Finite-Lived Intangible Asset, Useful Life | 40 years | ||||||||||
Trade names | |||||||||||
Finite-Lived Intangible Asset, Useful Life | 10 years | ||||||||||
Distribution rights | Minimum | |||||||||||
Finite-Lived Intangible Asset, Useful Life | 3 years | ||||||||||
Distribution rights | Maximum | |||||||||||
Finite-Lived Intangible Asset, Useful Life | 10 years | ||||||||||
Brands | |||||||||||
Finite-Lived Intangible Asset, Useful Life | 5 years | ||||||||||
Contractual arrangements | Minimum | |||||||||||
Finite-Lived Intangible Asset, Useful Life | 10 years | ||||||||||
Contractual arrangements | Maximum | |||||||||||
Finite-Lived Intangible Asset, Useful Life | 12 years | ||||||||||
Shipping and Handling [Member] | |||||||||||
Selling, general and administrative expenses | $ 1,326 | $ 1,181 | $ 695 |
Long-term Obligations and Bor_3
Long-term Obligations and Borrowing Arrangements - Long-Term Debt (Details) - USD ($) $ in Millions | Dec. 31, 2020 | Dec. 31, 2019 |
Debt Instrument [Line Items] | ||
Long-term debt | $ 13,488 | $ 13,174 |
Current portion of long-term debt | (2,345) | (347) |
Long-term obligations | 11,143 | 12,827 |
Senior Notes | ||
Debt Instrument [Line Items] | ||
Long-term debt | 13,065 | 11,802 |
Current portion of long-term debt | (2,246) | (250) |
Line of Credit | ||
Debt Instrument [Line Items] | ||
Current portion of long-term debt | (99) | (97) |
Term Loan | Line of Credit | ||
Debt Instrument [Line Items] | ||
Long-term debt | $ 423 | $ 1,372 |
Long-term Obligations and Bor_4
Long-term Obligations and Borrowing Arrangements - Current Debt (Details) - USD ($) $ in Millions | Dec. 31, 2020 | Dec. 31, 2019 |
Short-term Debt [Line Items] | ||
Current portion of long-term debt | $ 2,345 | $ 347 |
Short-term borrowings and current portion of long-term obligations | 2,345 | 1,593 |
Commercial Paper | ||
Short-term Debt [Line Items] | ||
Short-term debt | 0 | 1,246 |
Senior Notes | ||
Short-term Debt [Line Items] | ||
Current portion of long-term debt | 2,246 | 250 |
Line of Credit | ||
Short-term Debt [Line Items] | ||
Current portion of long-term debt | $ 99 | $ 97 |
Long-term Obligations and Bor_5
Long-term Obligations and Borrowing Arrangements - Senior Unsecured Notes (Details) - USD ($) $ in Millions | 12 Months Ended | |||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | Jul. 09, 2018 | |
Debt Instrument [Line Items] | ||||
Repayments of Senior Debt | $ 250 | $ 250 | $ 0 | |
Long-term debt | 13,488 | 13,174 | ||
Debt Instrument, Unamortized Discount (Premium), Net | 6 | |||
DPS Merger Notes | ||||
Debt Instrument [Line Items] | ||||
Face amount | $ 8,000 | |||
Senior Notes | ||||
Debt Instrument [Line Items] | ||||
Long term debt, carrying value | 13,225 | 11,975 | ||
Unamortized debt issuance costs | (160) | (173) | ||
Long-term debt | $ 13,065 | 11,802 | ||
Senior Notes | 2020 Notes | ||||
Debt Instrument [Line Items] | ||||
Interest rate | 2.00% | |||
Long term debt, carrying value | $ 0 | 250 | ||
Senior Notes | 2021 Notes | ||||
Debt Instrument [Line Items] | ||||
Interest rate | 3.20% | |||
Long term debt, carrying value | $ 250 | 250 | ||
Senior Notes | 2021-B Notes | ||||
Debt Instrument [Line Items] | ||||
Interest rate | 2.53% | |||
Long term debt, carrying value | $ 250 | 250 | ||
Senior Notes | 2022 Notes | ||||
Debt Instrument [Line Items] | ||||
Interest rate | 2.70% | |||
Long term debt, carrying value | $ 250 | 250 | ||
Senior Notes | 2023 Notes | ||||
Debt Instrument [Line Items] | ||||
Interest rate | 3.13% | |||
Long term debt, carrying value | $ 500 | 500 | ||
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 | 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 | 2021 Merger Notes | ||||
Debt Instrument [Line Items] | ||||
Interest rate | 3.551% | |||
Long term debt, carrying value | $ 1,750 | 1,750 | ||
Senior Notes | 2023 Merger Notes | ||||
Debt Instrument [Line Items] | ||||
Interest rate | 4.057% | |||
Long term debt, carrying value | $ 2,000 | 2,000 | ||
Senior Notes | 2025 Merger Notes | ||||
Debt Instrument [Line Items] | ||||
Interest rate | 4.417% | |||
Long term debt, carrying value | $ 1,000 | 1,000 | ||
Senior Notes | 2028 Merger Notes | ||||
Debt Instrument [Line Items] | ||||
Interest rate | 4.597% | |||
Long term debt, carrying value | $ 2,000 | 2,000 | ||
Senior Notes | 2038 Merger Notes | ||||
Debt Instrument [Line Items] | ||||
Interest rate | 4.985% | |||
Long term debt, carrying value | $ 500 | 500 | ||
Senior Notes | 2048 Merger Notes | ||||
Debt Instrument [Line Items] | ||||
Interest rate | 5.085% | |||
Long term debt, carrying value | $ 750 | 750 | ||
Senior Notes | 2030 Merger Notes | ||||
Debt Instrument [Line Items] | ||||
Interest rate | 3.20% | |||
Long term debt, carrying value | $ 750 | 0 | ||
Senior Notes | 2050 Notes | ||||
Debt Instrument [Line Items] | ||||
Interest rate | 3.80% | |||
Long term debt, carrying value | $ 750 | $ 0 | ||
Senior Notes | Senior Notes Issued in 2020 | ||||
Debt Instrument [Line Items] | ||||
Long term debt, carrying value | 1,500 | |||
Level 2 | Nonrecurring | Senior Notes | ||||
Debt Instrument [Line Items] | ||||
Long-term debt, fair value | $ 15,274 | $ 12,898 |
Long-term Obligations and Bor_6
Long-term Obligations and Borrowing Arrangements - Borrowing Arrangements (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | ||||||||||||||
Dec. 31, 2020 | Sep. 30, 2020 | Jun. 30, 2020 | Mar. 31, 2020 | Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | Feb. 08, 2019 | Jul. 09, 2018 | ||||
Debt Instrument [Line Items] | ||||||||||||||||
Long-term debt | $ 13,488 | $ 13,174 | $ 13,488 | $ 13,174 | ||||||||||||
Gain (Loss) on Extinguishment of Debt | 0 | $ 0 | $ (2) | $ (2) | (2) | $ 0 | $ 0 | $ (9) | (4) | (11) | $ (13) | |||||
2018 KDP Term Loan | ||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||
Face amount | $ 2,700 | |||||||||||||||
2019 KDP Term Loan [Member] | ||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||
Debt Instrument, Annual Principal Payment | 100 | 100 | ||||||||||||||
Face amount | $ 2,000 | |||||||||||||||
Long term debt, carrying value | [1] | 1,380 | 1,380 | |||||||||||||
Extinguishment of Debt, Amount | $ 955 | |||||||||||||||
Redemption percentage | 1.25% | |||||||||||||||
KDP Credit Agreements | ||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||
Long term debt, carrying value | 425 | 1,380 | $ 425 | 1,380 | ||||||||||||
Unamortized debt issuance costs | (2) | (8) | (2) | (8) | ||||||||||||
Long-term debt | 423 | 1,372 | 423 | 1,372 | ||||||||||||
364 Day Credit Agreement [Member] | ||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||
Long term debt, carrying value | 0 | 0 | 0 | 0 | ||||||||||||
Maximum borrowing capacity | 1,500 | 1,500 | ||||||||||||||
Previous (2019) 364 Day Credit Agreement [Member] | ||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||
Maximum borrowing capacity | 750 | 750 | ||||||||||||||
Term Loan Refinance [Member] | 2018 KDP Term Loan | ||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||
Gain (Loss) on Extinguishment of Debt | $ 3 | |||||||||||||||
Voluntary Prepayments [Member] | 2019 KDP Term Loan [Member] | ||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||
Extinguishment of Debt, Amount | 855 | |||||||||||||||
Gain (Loss) on Extinguishment of Debt | $ 4 | |||||||||||||||
Minimum | LIBOR | 2019 KDP Term Loan [Member] | ||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||
Basis spread on variable rate | 0.75% | |||||||||||||||
Minimum | LIBOR | 364 Day Credit Agreement [Member] | ||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||
Basis spread on variable rate | 2.25% | |||||||||||||||
Minimum | LIBOR | Previous (2019) 364 Day Credit Agreement [Member] | ||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||
Basis spread on variable rate | 1.00% | |||||||||||||||
Minimum | LIBOR | Line of Credit | KDP Credit Agreements | ||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||
Basis spread on variable rate | 0.875% | |||||||||||||||
Minimum | Base Rate | 2019 KDP Term Loan [Member] | ||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||
Basis spread on variable rate | 0.00% | |||||||||||||||
Minimum | Base Rate | 364 Day Credit Agreement [Member] | ||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||
Basis spread on variable rate | 1.25% | |||||||||||||||
Minimum | Base Rate | Previous (2019) 364 Day Credit Agreement [Member] | ||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||
Basis spread on variable rate | 0.00% | |||||||||||||||
Minimum | Base Rate | Line of Credit | KDP Credit Agreements | ||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||
Basis spread on variable rate | 0.00% | |||||||||||||||
Maximum | LIBOR | 2019 KDP Term Loan [Member] | ||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||
Basis spread on variable rate | 1.25% | |||||||||||||||
Maximum | LIBOR | 364 Day Credit Agreement [Member] | ||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||
Basis spread on variable rate | 2.75% | |||||||||||||||
Maximum | LIBOR | Previous (2019) 364 Day Credit Agreement [Member] | ||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||
Basis spread on variable rate | 1.625% | |||||||||||||||
Maximum | LIBOR | Line of Credit | KDP Credit Agreements | ||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||
Basis spread on variable rate | 1.50% | |||||||||||||||
Maximum | Base Rate | 2019 KDP Term Loan [Member] | ||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||
Basis spread on variable rate | 0.25% | |||||||||||||||
Maximum | Base Rate | 364 Day Credit Agreement [Member] | ||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||
Basis spread on variable rate | 1.75% | |||||||||||||||
Maximum | Base Rate | Previous (2019) 364 Day Credit Agreement [Member] | ||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||
Basis spread on variable rate | 0.625% | |||||||||||||||
Maximum | Base Rate | Line of Credit | KDP Credit Agreements | ||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||
Basis spread on variable rate | 0.50% | |||||||||||||||
Level 2 | 2019 KDP Term Loan [Member] | ||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||
Long term debt, carrying value | [1] | 425 | $ 425 | |||||||||||||
Revolving Credit Facility | ||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||
Long term debt, carrying value | 0 | [2] | $ 0 | 0 | [2] | $ 0 | ||||||||||
Maximum borrowing capacity | [2] | 2,400 | $ 2,400 | |||||||||||||
Revolving Credit Facility | Minimum | Line of Credit | KDP Credit Agreements | ||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||
Line of Credit Facility, Unused Capacity, Commitment Fee Percentage | 0.07% | |||||||||||||||
Revolving Credit Facility | Maximum | Line of Credit | KDP Credit Agreements | ||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||
Line of Credit Facility, Unused Capacity, Commitment Fee Percentage | 0.20% | |||||||||||||||
Letter of Credit | ||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||
Maximum borrowing capacity | 200 | $ 200 | ||||||||||||||
Letters of Credit Outstanding, Amount | 0 | 0 | ||||||||||||||
Letter of Credit | Line of Credit | ||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||
Maximum borrowing capacity | 100 | 100 | ||||||||||||||
Letters of Credit Outstanding, Amount | $ 50 | $ 50 | ||||||||||||||
[1] | During the year ended December 31, 2020, the Company prepaid $955 million of its outstanding obligations, of which $855 million were voluntary prepayments, under the 2019 KDP Term Loan using a combination of commercial paper and cash on hand. As a result of the voluntary prepayments, the Company recorded a $4 million loss on early extinguishment during the year ended December 31, 2020. | |||||||||||||||
[2] | The KDP Revolver has $200 million letters of credit available, none of which were utilized as of December 31, 2020. |
Long-term Obligations and Bor_7
Long-term Obligations and Borrowing Arrangements - Commercial Paper Program (Details) - Commercial Paper - USD ($) $ in Millions | 12 Months Ended | |||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | [1] | |
Short-term Debt [Line Items] | ||||
Maximum borrowing capacity | $ 2,400 | |||
Average outstanding amount | $ 789 | $ 1,754 | $ 1,309 | |
Weighted average interest rate over time | 1.24% | 2.56% | 2.53% | |
Short-term debt | $ 0 | $ 1,246 | ||
[1] | The Company assumed the commercial paper program as a result of the DPS Merger on July 9, 2018. As a result, weighted average commercial paper borrowings and weighted average borrowing rates are weighted from the assumption of the commercial paper program on July 9, 2018 through December 31, 2018. |
Long-term Obligations and Bor_8
Long-term Obligations and Borrowing Arrangements - Letter of Credit Facilities (Details) - USD ($) $ in Millions | Dec. 31, 2020 | Dec. 31, 2019 |
364 Day Credit Agreement [Member] | ||
Line of Credit Facility [Line Items] | ||
Maximum borrowing capacity | $ 1,500 | |
Previous (2019) 364 Day Credit Agreement [Member] | ||
Line of Credit Facility [Line Items] | ||
Maximum borrowing capacity | $ 750 | |
Letter of Credit | ||
Line of Credit Facility [Line Items] | ||
Maximum borrowing capacity | 200 | |
Letters of Credit Outstanding, Amount | 0 | |
Line of Credit | Letter of Credit | ||
Line of Credit Facility [Line Items] | ||
Maximum borrowing capacity | 100 | |
Letters of Credit Outstanding, Amount | 50 | |
Line of Credit Facility, Remaining Borrowing Capacity | $ 50 |
Goodwill and Other Intangible_3
Goodwill and Other Intangible Assets - Goodwill (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | ||
Change in goodwill by operating segments [Abstract] | |||
Balance (beginning of period) | $ 20,172 | $ 20,011 | |
Foreign currency impact | 12 | 123 | |
Measurement period adjustments, goodwill | [1] | 38 | |
Balance (end of period) | 20,184 | 20,172 | |
Beverage Concentrates | |||
Change in goodwill by operating segments [Abstract] | |||
Balance (beginning of period) | 4,526 | 4,265 | |
Foreign currency impact | 10 | 19 | |
Measurement period adjustments, goodwill | [1] | 242 | |
Balance (end of period) | 4,536 | 4,526 | |
Packaged Beverages | |||
Change in goodwill by operating segments [Abstract] | |||
Balance (beginning of period) | 5,301 | 4,878 | |
Foreign currency impact | 13 | 32 | |
Measurement period adjustments, goodwill | [1] | 391 | |
Balance (end of period) | 5,314 | 5,301 | |
Latin America Beverages | |||
Change in goodwill by operating segments [Abstract] | |||
Balance (beginning of period) | 570 | 618 | |
Foreign currency impact | (31) | 25 | |
Measurement period adjustments, goodwill | [1] | (73) | |
Balance (end of period) | 539 | 570 | |
Coffee Systems | |||
Change in goodwill by operating segments [Abstract] | |||
Balance (beginning of period) | 9,775 | 9,725 | |
Foreign currency impact | 20 | 47 | |
Measurement period adjustments, goodwill | 3 | ||
Balance (end of period) | 9,795 | 9,775 | |
Corporate and Other [Member] | |||
Change in goodwill by operating segments [Abstract] | |||
Balance (beginning of period) | 0 | 525 | |
Foreign currency impact | 0 | 0 | |
Measurement period adjustments, goodwill | [1] | (525) | |
Balance (end of period) | $ 0 | $ 0 | |
[1] | Amounts primarily represent the goodwill and measurement period adjustments recorded as a result of the DPS Merger, the Big Red Acquisition, and the Core Acquisition. |
Goodwill and Other Intangible_4
Goodwill and Other Intangible Assets - Intangible Assets (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | ||||||||||||
Dec. 31, 2020 | Sep. 30, 2020 | Jun. 30, 2020 | Mar. 31, 2020 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | Oct. 01, 2020 | Oct. 01, 2019 | Oct. 01, 2018 | |||||
Change in intangible assets other than goodwill [Abstract] | ||||||||||||||
Carrying Value | $ 22,534 | $ 22,534 | $ 22,565 | |||||||||||
Impairment of intangible assets | 67 | $ 0 | $ 0 | $ 0 | 67 | 0 | $ 0 | |||||||
Indefinite-lived Intangible Assets, Foreign Currency Translation Gain (Loss) | (7) | |||||||||||||
Finite-lived intangible assets, gross | 1,982 | 1,982 | 1,970 | |||||||||||
Accumulated Amortization | (548) | (548) | (418) | |||||||||||
Finite-lived intangible assets, net | 1,434 | 1,434 | 1,552 | |||||||||||
Amortization expense for intangible assets with definite lives | 133 | 126 | $ 121 | |||||||||||
Amortization expense of intangible assets [Abstract] | ||||||||||||||
2020 | 133 | 133 | ||||||||||||
2021 | 133 | 133 | ||||||||||||
2022 | 132 | 132 | ||||||||||||
2023 | 123 | 123 | ||||||||||||
2024 | 111 | 111 | ||||||||||||
Acquired technology | ||||||||||||||
Change in intangible assets other than goodwill [Abstract] | ||||||||||||||
Finite-lived intangible assets, gross | 1,146 | 1,146 | 1,146 | |||||||||||
Accumulated Amortization | (328) | (328) | (255) | |||||||||||
Finite-lived intangible assets, net | 818 | 818 | 891 | |||||||||||
Customer relationships | ||||||||||||||
Change in intangible assets other than goodwill [Abstract] | ||||||||||||||
Finite-lived intangible assets, gross | 638 | 638 | 638 | |||||||||||
Accumulated Amortization | (135) | (135) | (102) | |||||||||||
Finite-lived intangible assets, net | 503 | 503 | 536 | |||||||||||
Trade names | ||||||||||||||
Change in intangible assets other than goodwill [Abstract] | ||||||||||||||
Finite-lived intangible assets, gross | 127 | 127 | 128 | |||||||||||
Accumulated Amortization | (69) | (69) | (55) | |||||||||||
Finite-lived intangible assets, net | 58 | 58 | 73 | |||||||||||
Contractual arrangements | ||||||||||||||
Change in intangible assets other than goodwill [Abstract] | ||||||||||||||
Finite-lived intangible assets, gross | 24 | 24 | 24 | |||||||||||
Accumulated Amortization | (5) | (5) | (3) | |||||||||||
Finite-lived intangible assets, net | 19 | 19 | 21 | |||||||||||
Brands | ||||||||||||||
Change in intangible assets other than goodwill [Abstract] | ||||||||||||||
Finite-lived intangible assets, gross | 21 | 21 | 10 | |||||||||||
Accumulated Amortization | (5) | (5) | (2) | |||||||||||
Finite-lived intangible assets, net | 16 | 16 | 8 | |||||||||||
Distribution rights | ||||||||||||||
Change in intangible assets other than goodwill [Abstract] | ||||||||||||||
Finite-lived intangible assets, gross | 26 | 26 | 24 | |||||||||||
Accumulated Amortization | (6) | (6) | (1) | |||||||||||
Finite-lived intangible assets, net | 20 | 20 | 23 | |||||||||||
Brands | ||||||||||||||
Change in intangible assets other than goodwill [Abstract] | ||||||||||||||
Carrying Value | 19,874 | [1] | 19,874 | [1] | 19,948 | [1] | $ 19,741 | $ 19,863 | $ 19,555 | |||||
Trade names | ||||||||||||||
Change in intangible assets other than goodwill [Abstract] | ||||||||||||||
Carrying Value | 123 | 123 | 122 | $ 2,480 | $ 2,479 | $ 2,479 | ||||||||
Contractual arrangements | ||||||||||||||
Change in intangible assets other than goodwill [Abstract] | ||||||||||||||
Carrying Value | 2,480 | 2,480 | 2,479 | |||||||||||
Distribution rights | ||||||||||||||
Change in intangible assets other than goodwill [Abstract] | ||||||||||||||
Carrying Value | [2] | $ 57 | 57 | $ 16 | ||||||||||
Indefinite-lived Intangible assets acquired | $ 41 | |||||||||||||
[1] | The decrease in brands with indefinite lives was due to $67 million impairment of the Bai brand, as well as a decrease of $7 million due to foreign currency translation during the year ended December 31, 2020. Refer to Impairment Analysis below for further details about the impairment of Bai. (2) The Company executed nine agreements to acquire distribution rights during the year ended December 31, 2020, which resulted in an increase of $41 million. This increase was partially offset by foreign currency translation. | |||||||||||||
[2] | The Company executed nine agreements to acquire distribution rights during the year ended December 31, 2020, which resulted in an increase of $41 million. This increase was partially offset by foreign currency translation |
Goodwill and Other Intangible_5
Goodwill and Other Intangible Assets - Impairment Analysis (Details) $ in Millions | 12 Months Ended | |||||||||
Dec. 31, 2020USD ($) | Dec. 31, 2019USD ($) | Dec. 31, 2018 | Oct. 01, 2020USD ($) | Oct. 01, 2019USD ($) | Oct. 01, 2018USD ($) | |||||
Goodwill [Line Items] | ||||||||||
Carrying Value | $ 22,534 | $ 22,565 | ||||||||
Brands | ||||||||||
Goodwill [Line Items] | ||||||||||
Carrying Value | 19,874 | [1] | 19,948 | [1] | $ 19,741 | $ 19,863 | $ 19,555 | |||
Fair Value | 29,018 | 26,542 | 19,555 | [2] | ||||||
Brands | Impairment(2) | ||||||||||
Goodwill [Line Items] | ||||||||||
Carrying Value | 482 | [3] | 0 | 0 | ||||||
Fair Value | 415 | [3] | 0 | 0 | ||||||
Brands | 0 - 25% | ||||||||||
Goodwill [Line Items] | ||||||||||
Carrying Value | 5,052 | 6,356 | 19,555 | |||||||
Fair Value | 5,775 | 7,251 | 19,555 | [2] | ||||||
Brands | 26 - 50% | ||||||||||
Goodwill [Line Items] | ||||||||||
Carrying Value | 2,261 | 12,319 | 0 | |||||||
Fair Value | 2,993 | 17,303 | 0 | |||||||
Brands | In excess of 50% | ||||||||||
Goodwill [Line Items] | ||||||||||
Carrying Value | 11,946 | 1,188 | 0 | |||||||
Fair Value | 19,835 | 1,988 | 0 | |||||||
Trade Names | ||||||||||
Goodwill [Line Items] | ||||||||||
Carrying Value | $ 123 | $ 122 | 2,480 | 2,479 | 2,479 | |||||
Fair Value | 6,991 | 6,650 | 4,600 | |||||||
Trade Names | Impairment(2) | ||||||||||
Goodwill [Line Items] | ||||||||||
Carrying Value | 0 | 0 | 0 | |||||||
Fair Value | 0 | 0 | 0 | |||||||
Trade Names | 0 - 25% | ||||||||||
Goodwill [Line Items] | ||||||||||
Carrying Value | 1 | 0 | 0 | |||||||
Fair Value | 1 | 0 | 0 | |||||||
Trade Names | 26 - 50% | ||||||||||
Goodwill [Line Items] | ||||||||||
Carrying Value | 0 | 0 | 0 | |||||||
Fair Value | 0 | 0 | 0 | |||||||
Trade Names | In excess of 50% | ||||||||||
Goodwill [Line Items] | ||||||||||
Carrying Value | 2,479 | 2,479 | 2,479 | |||||||
Fair Value | $ 6,990 | $ 6,650 | $ 4,600 | |||||||
Measurement Input, Discount Rate [Member] | Minimum | ||||||||||
Goodwill [Line Items] | ||||||||||
Goodwill and Other Intangible Assets Measurement Input | 0.060 | 0.073 | 0.085 | |||||||
Measurement Input, Discount Rate [Member] | Maximum | ||||||||||
Goodwill [Line Items] | ||||||||||
Goodwill and Other Intangible Assets Measurement Input | 0.100 | 0.130 | 0.095 | |||||||
Measurement Input, Long-term growth rate [Member] | Minimum | ||||||||||
Goodwill [Line Items] | ||||||||||
Goodwill and Other Intangible Assets Measurement Input | 0 | 0 | 0.009 | |||||||
Measurement Input, Long-term growth rate [Member] | Maximum | ||||||||||
Goodwill [Line Items] | ||||||||||
Goodwill and Other Intangible Assets Measurement Input | 0.035 | 0.025 | 0.024 | |||||||
Measurement Input, Royalty Rate [Member] | Minimum | ||||||||||
Goodwill [Line Items] | ||||||||||
Goodwill and Other Intangible Assets Measurement Input | 0.010 | 0.010 | 0.010 | |||||||
Measurement Input, Royalty Rate [Member] | Maximum | ||||||||||
Goodwill [Line Items] | ||||||||||
Goodwill and Other Intangible Assets Measurement Input | 0.100 | 0.100 | 0.070 | |||||||
[1] | The decrease in brands with indefinite lives was due to $67 million impairment of the Bai brand, as well as a decrease of $7 million due to foreign currency translation during the year ended December 31, 2020. Refer to Impairment Analysis below for further details about the impairment of Bai. (2) The Company executed nine agreements to acquire distribution rights during the year ended December 31, 2020, which resulted in an increase of $41 million. This increase was partially offset by foreign currency translation. | |||||||||
[2] | Due to the timing of the DPS Merger, the Company performed as a step 0 analysis on the indefinite lived brands as of October 1, 2018, which resulted in carrying value approximating fair value. | |||||||||
[3] | The impairment line represents the carrying value and fair value of Bai as of the October 1, 2020 measurement date, prior to the $67 million impairment recorded during the fourth quarter of 2020. |
Acquisitions and Investments _3
Acquisitions and Investments in Unconsolidated Subsidiaries - Dr Pepper Snapple Group, Inc (Details) - USD ($) $ / shares in Units, $ in Millions | Jul. 09, 2018 | Dec. 31, 2020 | Dec. 31, 2019 | Jul. 09, 2019 | Dec. 31, 2018 | |
Business Combination, Consideration Transferred [Abstract] | ||||||
Acquisitions of businesses | $ 0 | $ 8 | $ 19,114 | |||
Proceeds from issuance of common stock | 0 | 0 | 9,000 | |||
Proceeds from structured payables | $ 124 | 171 | 330 | 526 | ||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Liabilities [Abstract] | ||||||
Goodwill | $ 20,184 | $ 20,172 | $ 20,011 | |||
DPS | ||||||
Business Combination, Consideration Transferred [Abstract] | ||||||
Aggregate fair value of DPS common stock | 3,611 | |||||
Acquisitions of businesses | [1] | 18,818 | ||||
Fair value of replacement equity awards | [2] | 53 | ||||
Total consideration exchanged | $ 22,482 | |||||
Cash dividend paid per share (in dollars per share) | $ 103.75 | |||||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Liabilities [Abstract] | ||||||
Cash and cash equivalents | $ 147 | |||||
Investments in unconsolidated subsidiaries | 90 | |||||
Property, plant and equipment | 1,475 | |||||
Long-term obligations | (4,049) | |||||
Capital lease and financing obligations | (205) | |||||
Assumed liabilities, net of acquired assets | 81 | |||||
Deferred tax liabilities | (5,041) | |||||
Goodwill | [3] | 9,906 | ||||
Total consideration exchanged | 22,482 | |||||
Fair value of replacement equity awards not converted to cash | 3,643 | |||||
Acquisition of business | 18,839 | |||||
Inventory step up | $ 131 | |||||
Minimum | DPS | ||||||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Liabilities [Abstract] | ||||||
Property plant and equipment useful life | 1 year | |||||
Maximum | DPS | ||||||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Liabilities [Abstract] | ||||||
Property plant and equipment useful life | 41 years | |||||
Private Placement | ||||||
Business Combination, Consideration Transferred [Abstract] | ||||||
Proceeds from issuance of common stock | $ 9,000 | |||||
Brands | DPS | ||||||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Liabilities [Abstract] | ||||||
Indefinite-lived Intangible assets acquired | 19,556 | |||||
Contractual arrangements | DPS | ||||||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Liabilities [Abstract] | ||||||
Indefinite-lived Intangible assets acquired | 127 | |||||
Customer relationships | DPS | ||||||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Liabilities [Abstract] | ||||||
Finite lived intangible assets acquired | 390 | |||||
Customer relationships | Minimum | DPS | ||||||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Liabilities [Abstract] | ||||||
Acquired finite-lived intangible assets, weighted average useful life | 40 years | |||||
Customer relationships | Maximum | DPS | ||||||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Liabilities [Abstract] | ||||||
Acquired finite-lived intangible assets, weighted average useful life | 10 years | |||||
Favorable leases | DPS | ||||||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Liabilities [Abstract] | ||||||
Finite lived intangible assets acquired | $ 5 | |||||
Favorable leases | Minimum | DPS | ||||||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Liabilities [Abstract] | ||||||
Acquired finite-lived intangible assets, weighted average useful life | 12 years | |||||
Favorable leases | Maximum | DPS | ||||||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Liabilities [Abstract] | ||||||
Acquired finite-lived intangible assets, weighted average useful life | 5 years | |||||
DPS Merger Notes | ||||||
Business Combination, Consideration Transferred [Abstract] | ||||||
Face amount | $ 8,000 | |||||
2018 KDP Term Loan | ||||||
Business Combination, Consideration Transferred [Abstract] | ||||||
Face amount | 2,700 | |||||
Revolving Credit Facility | ||||||
Business Combination, Consideration Transferred [Abstract] | ||||||
Proceeds from lines of credit | $ 1,900 | |||||
[1] | As a result of the DPS Merger, all DPS stock option awards, RSUs and PSUs which were unvested prior to the DPS Merger vested immediately as a result of the Change in Control (as defined in the terms of each individual award agreement). All such awards, except for the stock option awards and certain RSUs not yet released to the employee, received the special cash dividend of $103.75 per share, subject to any withholding of taxes required by law. These amounts were included within the special cash dividend. | |||||
[2] | The fair value of replacement equity awards includes the Company issued replacement stock option awards for DPS stock option awards that were fully vested as of July 9, 2018 but not yet exercised by the employee, the DPS stock option awards that were fully vested as of July 9, 2018 and converted to cash by the employee and certain RSUs not yet released to the employee as a result of certain IRS requirements. | |||||
[3] | The goodwill recognized is attributable to operational and general and administrative cost synergies resulting from the warehouse and transportation integration, direct procurement savings on overlapping materials, purchasing scale on indirect spend categories and optimization of duplicate positions and processes. The Company may also recognize revenue synergies, driven by a strong portfolio of brands with exposure to higher growth segments and the ability to leverage the Company's collective distribution strength. The goodwill created in the DPS Merger is not deductible for tax purposes. |
Acquisitions and Investments _4
Acquisitions and Investments in Unconsolidated Subsidiaries - Big Red (Details) - USD ($) $ in Millions | Aug. 31, 2018 | Jul. 09, 2018 | Dec. 31, 2020 | Dec. 31, 2019 | Aug. 31, 2019 | Dec. 31, 2018 | |
Business Combination, Recognized Identifiable Assets Acquired, Goodwill, and Liabilities Assumed, Net [Abstract] | |||||||
Goodwill | $ 20,184 | $ 20,172 | $ 20,011 | ||||
Acquisition of business | $ 0 | $ 8 | $ 19,114 | ||||
Big Red | |||||||
Business Acquisition [Line Items] | |||||||
Business Combination, Step Acquisition, Equity Interest in Acquiree, Remeasurement Gain | $ 6 | ||||||
Cash purchase price | 300 | ||||||
Total consideration exchanged | 282 | ||||||
Amount held in escrow | $ 15 | $ 15 | |||||
Step acquisition equity interest in acquiree percentage | 14.36% | ||||||
Step acquisition equity interest in aquiree | $ 22 | $ 16 | 22 | ||||
Business Combination, Recognized Identifiable Assets Acquired, Goodwill, and Liabilities Assumed, Net [Abstract] | |||||||
Cash and cash equivalents | 3 | ||||||
Indefinite-lived Intangible assets acquired | [1] | 220 | |||||
Acquired assets, net of assumed liabilities | [2] | (48) | |||||
Goodwill | [3] | 113 | |||||
Total consideration exchanged | 306 | ||||||
Less: Company's previous ownership interest | 22 | $ 16 | 22 | ||||
Amount held in escrow | 15 | 15 | |||||
Acquisition of business | 269 | ||||||
Inventory step up | $ 2 | ||||||
Brands | Big Red | |||||||
Business Combination, Recognized Identifiable Assets Acquired, Goodwill, and Liabilities Assumed, Net [Abstract] | |||||||
Finite lived intangible assets acquired | 11 | ||||||
Acquired finite-lived intangible assets, weighted average useful life | 5 years | ||||||
Contractual arrangements | Big Red | |||||||
Business Combination, Recognized Identifiable Assets Acquired, Goodwill, and Liabilities Assumed, Net [Abstract] | |||||||
Finite lived intangible assets acquired | 6 | ||||||
Acquired finite-lived intangible assets, weighted average useful life | 12 years | ||||||
Customer relationships | Big Red | |||||||
Business Combination, Recognized Identifiable Assets Acquired, Goodwill, and Liabilities Assumed, Net [Abstract] | |||||||
Finite lived intangible assets acquired | 1 | ||||||
Brands | Big Red | |||||||
Business Combination, Recognized Identifiable Assets Acquired, Goodwill, and Liabilities Assumed, Net [Abstract] | |||||||
Indefinite-lived Intangible assets acquired | $ 220 | ||||||
Minimum | Customer relationships | Big Red | |||||||
Business Combination, Recognized Identifiable Assets Acquired, Goodwill, and Liabilities Assumed, Net [Abstract] | |||||||
Acquired finite-lived intangible assets, weighted average useful life | 8 years | ||||||
Maximum | Customer relationships | Big Red | |||||||
Business Combination, Recognized Identifiable Assets Acquired, Goodwill, and Liabilities Assumed, Net [Abstract] | |||||||
Acquired finite-lived intangible assets, weighted average useful life | 40 years | ||||||
[1] | The Company valued WIP and finished goods inventory resulting in a step-up of $2 million which was recognized in the cost of goods sold for the year ended December 31, 2018 as the related inventory was sold during that period. | ||||||
[2] | The Company valued WIP and finished goods inventory resulting in a step-up of $131 million which was recognized in the cost of goods sold for the year ended December 31, 2018 as the related inventory was sold during that period. | ||||||
[3] | The goodwill recognized is attributable to operational and general and administrative cost synergies resulting from the warehouse and transportation integration, purchasing scale on various spend categories and optimization of duplicate positions and processes. The goodwill created in the Big Red Acquisition is not deductible for tax purposes. |
Acquisitions and Investments _5
Acquisitions and Investments in Unconsolidated Subsidiaries - Core Nutrition, LLC (Details) - USD ($) $ in Millions | Nov. 30, 2018 | Aug. 31, 2018 | Dec. 31, 2020 | Dec. 31, 2019 | Nov. 30, 2019 | Dec. 31, 2018 | Sep. 27, 2018 | |
Business Acquisition [Line Items] | ||||||||
Goodwill | $ 20,184 | $ 20,172 | $ 20,011 | |||||
Acquisition of business | $ 0 | $ 8 | $ 19,114 | |||||
Core | ||||||||
Business Acquisition [Line Items] | ||||||||
Enterprise value of acquiree | $ 525 | |||||||
Cash purchase price | $ 6 | |||||||
Cash and cash equivalents | $ 10 | |||||||
Acquired assets, net of assumed liabilities | (17) | |||||||
Goodwill | [1] | 362 | ||||||
Total consideration exchanged | 514 | |||||||
Less: Company's previous ownership interest | $ 26 | 31 | ||||||
Business Combination, Step Acquisition, Equity Interest in Acquiree, Remeasurement Gain | 12 | |||||||
Other Payments to Acquire Businesses | $ 27 | 23 | ||||||
Step acquisition equity interest in acquiree percentage | 5.10% | |||||||
Acquisition of business | 460 | |||||||
Brands | Core | ||||||||
Business Acquisition [Line Items] | ||||||||
Indefinite-lived Intangible assets acquired | 142 | |||||||
Contractual arrangements | Core | ||||||||
Business Acquisition [Line Items] | ||||||||
Finite lived intangible assets acquired | $ 17 | |||||||
Acquired finite-lived intangible assets, weighted average useful life | 10 years | |||||||
[1] | The goodwill recognized is attributable to operational and general and administrative cost synergies resulting from the warehouse and transportation integration, purchasing scale on various spend categories and optimization of duplicate positions and processes. The goodwill created in the Core Acquisition is deductible for tax purposes. |
Acquisitions and Investments _6
Acquisitions and Investments in Unconsolidated Subsidiaries - Transaction Expenses (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Business Acquisition [Line Items] | |||
Total transaction expenses incurred | $ 0 | $ 25 | $ 162 |
DPS | |||
Business Acquisition [Line Items] | |||
Total transaction expenses incurred | 0 | 8 | 158 |
Other Transactions [Member] | |||
Business Acquisition [Line Items] | |||
Total transaction expenses incurred | $ 0 | $ 17 | $ 4 |
Acquisitions and Investments _7
Acquisitions and Investments in Unconsolidated Subsidiaries - Investments In Unconsolidated Subsidiaries (Details) - USD ($) $ in Millions | Dec. 31, 2020 | Dec. 31, 2019 |
Schedule of Equity Method Investments [Line Items] | ||
Investments in unconsolidated affiliates | $ 88 | $ 151 |
BodyArmor | ||
Schedule of Equity Method Investments [Line Items] | ||
Ownership percentage | 12.50% | |
Investments in unconsolidated affiliates | $ 51 | 52 |
Bedford | ||
Schedule of Equity Method Investments [Line Items] | ||
Ownership percentage | 30.00% | |
Investments in unconsolidated affiliates | $ 0 | 46 |
Dyla LLC | ||
Schedule of Equity Method Investments [Line Items] | ||
Ownership percentage | 12.40% | |
Investments in unconsolidated affiliates | $ 12 | 13 |
Force Holdings 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 | 15 | 30 |
Other | ||
Schedule of Equity Method Investments [Line Items] | ||
Investments in unconsolidated affiliates | $ 5 | $ 5 |
Acquisitions and Investments _8
Acquisitions and Investments in Unconsolidated Subsidiaries - Aggregate Immaterial Acquisitions (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Business Acquisition [Line Items] | |||
Acquisitions of businesses | $ 0 | $ 8 | $ 19,114 |
Series of Individually Immaterial Business Acquisitions [Member] | |||
Business Acquisition [Line Items] | |||
Acquisitions of businesses | $ 8 |
Acquisitions and Investments _9
Acquisitions and Investments in Unconsolidated Subsidiaries - Revive (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Noncontrolling Interest [Line Items] | |||
Acquisition of business | $ 0 | $ 8,000,000 | $ 19,114,000,000 |
Revive [Member] | |||
Noncontrolling Interest [Line Items] | |||
Noncontrolling Interest, Ownership Percentage by Parent | 66.40% | ||
Acquisition of business | $ 1 | ||
Additional Paid-In Capital | Revive [Member] | |||
Noncontrolling Interest [Line Items] | |||
Noncontrolling Interest, Increase from Business Combination | $ 3,000,000 |
Acquisitions and Investments_10
Acquisitions and Investments in Unconsolidated Subsidiaries - Impairment (Details) - USD ($) $ in Millions | 12 Months Ended | |||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | Mar. 31, 2020 | |
Schedule of Equity Method Investments [Line Items] | ||||
Equity Method Investment, Other than Temporary Impairment | $ 102 | $ 0 | $ 0 | |
Bedford | ||||
Schedule of Equity Method Investments [Line Items] | ||||
Outstanding receivables, related party | $ 51 | $ 55 | ||
Line of credit receivable, interest rate | 8.10% | |||
Equity Method Investment, Other than Temporary Impairment | $ 31 | |||
LifeFuels | ||||
Schedule of Equity Method Investments [Line Items] | ||||
Equity Method Investment, Other than Temporary Impairment | $ 16 |
Restructuring and Integration_3
Restructuring and Integration Costs - Schedule of Charges Incurred (Details) - USD ($) $ in Millions | 12 Months Ended | 29 Months Ended | 30 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2019 | Dec. 31, 2020 | |
Restructuring Cost and Reserve [Line Items] | |||||
Total restructuring and integration charges | $ 200 | $ 233 | $ 170 | ||
Business realignment | Corporate Unallocated | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Total restructuring and integration charges | 0 | 0 | 2 | ||
Keurig K2.0 exit | Corporate Unallocated | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Total restructuring and integration charges | 0 | 1 | 12 | $ 29 | |
Integration program | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Total restructuring and integration charges | $ 587 | ||||
Integration program | Corporate Unallocated | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Total restructuring and integration charges | 200 | 232 | 155 | ||
Other restructuring programs | Corporate Unallocated | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Total restructuring and integration charges | $ 0 | $ 0 | $ 1 |
Restructuring and Integration_4
Restructuring and Integration Costs - Restructuring Liabilities (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | ||
Restructuring Reserve [Roll Forward] | |||
Balance at beginning of period | $ 15,000,000 | $ 29,000,000 | |
Charges to expense | 31,000,000 | 31,000,000 | |
Cash payments | (29,000,000) | (44,000,000) | |
Non-cash adjustment items | 3,000,000 | 1,000,000 | |
Balance at end of period | 14,000,000 | 15,000,000 | |
Workforce Reduction Costs | |||
Restructuring Reserve [Roll Forward] | |||
Balance at beginning of period | 15,000,000 | 28,000,000 | |
Charges to expense | 31,000,000 | 31,000,000 | |
Cash payments | (29,000,000) | (44,000,000) | |
Non-cash adjustment items | 3,000,000 | 0 | |
Balance at end of period | 14,000,000 | 15,000,000 | |
Other | |||
Restructuring Reserve [Roll Forward] | |||
Balance at beginning of period | 0 | 1,000,000 | [1] |
Charges to expense | 0 | 0 | |
Cash payments | 0 | 0 | |
Non-cash adjustment items | 0 | 1,000,000 | [1] |
Balance at end of period | $ 0 | $ 0 | |
[1] | Primarily reflects activities associated with the closure of certain facilities, excluding contract termination costs, which include any associated asset write-downs and accelerated depreciation. |
Restructuring and Integration_5
Restructuring and Integration Costs - Restructuring Programs (Details) - USD ($) $ in Millions | 12 Months Ended | 29 Months Ended | 30 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2019 | Dec. 31, 2020 | |
Restructuring Cost and Reserve [Line Items] | |||||
Expected annual synergies | $ 600 | ||||
Expected cost | 750 | $ 750 | |||
Restructuring and integration charges | 200 | $ 233 | $ 170 | ||
Integration program | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Restructuring and integration charges | $ 587 | ||||
Corporate Unallocated | Integration program | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Restructuring and integration charges | 200 | 232 | 155 | ||
Corporate Unallocated | Business realignment | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Restructuring and integration charges | 0 | 0 | 2 | ||
Corporate Unallocated | Keurig K2.0 exit | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Restructuring and integration charges | $ 0 | $ 1 | $ 12 | $ 29 |
Income Taxes - Income Before Pr
Income Taxes - Income Before Provision for Income Taxes by Location (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2020 | Sep. 30, 2020 | Jun. 30, 2020 | Mar. 31, 2020 | Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Income Tax Disclosure [Abstract] | |||||||||||
U.S. | $ 1,367 | $ 1,389 | $ 635 | ||||||||
International | 386 | 305 | 156 | ||||||||
Income before provision for income taxes | $ 558 | $ 584 | $ 406 | $ 205 | $ 550 | $ 413 | $ 416 | $ 315 | $ 1,753 | $ 1,694 | $ 791 |
Income Taxes - Components of In
Income Taxes - Components of Income Tax Provision (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2020 | Sep. 30, 2020 | Jun. 30, 2020 | Mar. 31, 2020 | Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Income Tax Disclosure [Abstract] | |||||||||||
Federal | $ 297 | $ 303 | $ 183 | ||||||||
State | 103 | 98 | 62 | ||||||||
International | 79 | 62 | 38 | ||||||||
Total current provision | 479 | 463 | 283 | ||||||||
Federal | (31) | (31) | (24) | ||||||||
State | (6) | 1 | (50) | ||||||||
International | (14) | 7 | (7) | ||||||||
Total deferred provision | (51) | (23) | (81) | ||||||||
Total provision for income taxes | $ 130 | $ 141 | $ 108 | $ 49 | $ 144 | $ 109 | $ 102 | $ 85 | $ 428 | $ 440 | $ 202 |
Income Taxes - Reconciliation o
Income Taxes - Reconciliation of Provision for Income Taxes (Details) | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Percent | |||
Statutory federal income tax | 21.00% | 21.00% | 21.00% |
State income taxes, net | 4.00% | 3.70% | 5.40% |
U.S. federal domestic manufacturing benefit | 0.00% | 0.00% | (1.50%) |
Impact of non-U.S. operations | 0.20% | 0.30% | 0.10% |
Tax credits | (1.30%) | (0.90%) | (0.90%) |
Valuation allowance | (1.10%) | 0.00% | 2.00% |
U.S. taxation of foreign earnings | 1.60% | 1.50% | 1.80% |
Tax reform | 0.50% | (0.30%) | (4.90%) |
State refund | 0.00% | 0.00% | (0.40%) |
Uncertain tax positions | (1.30%) | 0.00% | 0.60% |
U.S. federal provision to return | 0.10% | (0.60%) | (0.30%) |
Transaction costs | 0.00% | 0.00% | 1.40% |
Impact of the TCJA | 0 | 0 | 0.005 |
Other | 0.70% | 1.30% | 0.70% |
Total income tax provision | 24.40% | 26.00% | 25.50% |
Income Taxes - Components of De
Income Taxes - Components of Deferred Tax Assets and Liabilities (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Components of Deferred Tax Assets [Abstract] | ||
Operating lease liability | $ 161 | $ 67 |
Net operating losses carryforwards | 46 | 48 |
Tax credit carryforwards | 54 | 56 |
Accrued expenses | 153 | 118 |
Share-based compensation | 36 | 24 |
Multi-year upfront payments | 15 | 18 |
Equity method investments | 29 | 0 |
Other | 27 | 36 |
Total deferred tax assets | 521 | 367 |
Valuation allowances | (51) | (71) |
Total deferred tax assets, net of valuation allowances | 470 | 296 |
Components of Deferred Tax Liabilities [Abstract] | ||
Brands, trade names and other intangible assets | (5,916) | (5,913) |
Property, plant and equipment | (293) | (263) |
Derivative instruments | (38) | (48) |
Right of use assets | (159) | (64) |
Equity method investments | 0 | (1) |
Other | (12) | (8) |
Total deferred tax liabilities | (6,418) | (6,297) |
Net deferred tax liabilities | (5,948) | (6,001) |
Deferred Tax Assets, Operating Loss Carryforwards, Foreign | 45 | $ 48 |
Valuation Allowance, Deferred Tax Asset, Increase (Decrease), Amount | $ 19 |
Income Taxes - Additional Infor
Income Taxes - Additional Information (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Operating Loss Carryforwards [Line Items] | |||
Net operating losses carryforwards | $ 46 | $ 48 | |
Tax credit carryforwards | 54 | 56 | |
Undistributed Earnings, Basic | 130 | 88 | |
Income Tax Holiday, Aggregate Dollar Amount | 6 | ||
Income Tax Examination, Penalties and Interest Expense | (8) | 3 | $ 1 |
Income Tax Examination, Penalties and Interest Accrued | 1 | $ 11 | |
Unrecognized Tax Benefits that Would Impact Effective Tax Rate | 13 | ||
Domestic Tax Authority [Member] | |||
Operating Loss Carryforwards [Line Items] | |||
Tax credit carryforwards | 53 | ||
Tax Credit Carryforward, Valuation Allowance | 51 | ||
State and Local Jurisdiction [Member] | |||
Operating Loss Carryforwards [Line Items] | |||
Tax credit carryforwards | 1 | ||
Non-Expiring [Member] | |||
Operating Loss Carryforwards [Line Items] | |||
Net operating losses carryforwards | 44 | ||
Expiring in Future Periods [Member] | |||
Operating Loss Carryforwards [Line Items] | |||
Net operating losses carryforwards | $ 1 |
Income Taxes - Rollforward of U
Income Taxes - Rollforward of Unrecognized Tax Benefits (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Reconciliation of Unrecognized Tax Benefits, Excluding Amounts Pertaining to Examined Tax Returns [Roll Forward] | |||
Balance, beginning of the period | $ 43 | $ 50 | $ 35 |
Increases related to tax positions taken during the current year | 2 | 2 | 1 |
Increases related to tax positions during the prior year | 2 | 3 | 12 |
Increases related to tax positions from acquisitions | 0 | 0 | 13 |
Decreases related to settlements with taxing authorities | (8) | (8) | (8) |
Decreases related to lapse of applicable statute of limitations | (21) | (4) | (3) |
Balance, end of the period | $ 18 | $ 43 | $ 50 |
Derivatives - Notional Amounts
Derivatives - Notional Amounts (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Receive-Fixed, Pay-Variable Interest Rate Swaps | ||
Derivative [Line Items] | ||
Derivative, Cash Received from Early Termination | $ 18 | |
Derivative, Notional Amount, Terminated Early During the Period | 50 | |
Receive-Fixed, Pay-Variable Interest Rate Swaps | Not Designated as Hedging Instrument | ||
Derivative [Line Items] | ||
Derivative Notional Amounts | 0 | $ 50 |
Receive-Variable Pay-Fixed Interest Rate Swaps | ||
Derivative [Line Items] | ||
Derivative, Cash Received from Early Termination | 2 | |
Derivative, Notional Amount, Terminated Early During the Period | 575 | |
Receive-Variable Pay-Fixed Interest Rate Swaps | Not Designated as Hedging Instrument | ||
Derivative [Line Items] | ||
Derivative Notional Amounts | 450 | 575 |
Foreign Exchange Forward | Not Designated as Hedging Instrument | ||
Derivative [Line Items] | ||
Derivative Notional Amounts | 476 | 523 |
Foreign Exchange Forward | Designated as Hedging Instrument | ||
Derivative [Line Items] | ||
Derivative Notional Amounts | 333 | 0 |
Commodity Contract | Not Designated as Hedging Instrument | ||
Derivative [Line Items] | ||
Derivative Notional Amounts | $ 450 | $ 150 |
Derivatives - Fair Value (Detai
Derivatives - Fair Value (Details) - Recurring - Level 2 - USD ($) $ in Millions | Dec. 31, 2020 | Dec. 31, 2019 |
Interest Rate Contract | Not Designated as Hedging Instrument | Prepaid expenses and other current assets | ||
Derivatives, Fair Value [Line Items] | ||
Derivative asset | $ 0 | $ 1 |
Interest Rate Contract | Not Designated as Hedging Instrument | Other non-current assets | ||
Derivatives, Fair Value [Line Items] | ||
Derivative asset | 0 | 18 |
Interest Rate Contract | Not Designated as Hedging Instrument | Other current liabilities | ||
Derivatives, Fair Value [Line Items] | ||
Derivative liability | 2 | 0 |
Interest Rate Contract | Not Designated as Hedging Instrument | Other non-current liabilities | ||
Derivatives, Fair Value [Line Items] | ||
Derivative liability | 7 | 0 |
Foreign Exchange Forward | Not Designated as Hedging Instrument | Other current liabilities | ||
Derivatives, Fair Value [Line Items] | ||
Derivative liability | 6 | 2 |
Foreign Exchange Forward | Not Designated as Hedging Instrument | Other non-current liabilities | ||
Derivatives, Fair Value [Line Items] | ||
Derivative liability | 9 | 3 |
Foreign Exchange Forward | Designated as Hedging Instrument | Other current liabilities | ||
Derivatives, Fair Value [Line Items] | ||
Derivative liability | 12 | 0 |
Commodity Contract | Not Designated as Hedging Instrument | Prepaid expenses and other current assets | ||
Derivatives, Fair Value [Line Items] | ||
Derivative asset | 45 | 30 |
Commodity Contract | Not Designated as Hedging Instrument | Other non-current assets | ||
Derivatives, Fair Value [Line Items] | ||
Derivative asset | 12 | 1 |
Commodity Contract | Not Designated as Hedging Instrument | Other current liabilities | ||
Derivatives, Fair Value [Line Items] | ||
Derivative liability | 5 | 10 |
Commodity Contract | Not Designated as Hedging Instrument | Other non-current liabilities | ||
Derivatives, Fair Value [Line Items] | ||
Derivative liability | $ 2 | $ 1 |
Derivatives - Impact on Net Inc
Derivatives - Impact on Net Income (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Derivative Instruments, Gain (Loss) [Line Items] | |||
Cash Flow Hedge Gain (Loss) to be Reclassified within Twelve Months | $ 14 | ||
Commodity Contract | Cost of sales | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Amount of (Gain) Loss Recognized in Income | $ (42) | ||
Commodity Contract | SG&A expenses | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Amount of (Gain) Loss Recognized in Income | (20) | ||
Interest Rate Contract | Interest expense | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Amount of (Gain) Loss Recognized in Income | (6) | ||
Foreign Exchange Forward | Cost of sales | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Amount of (Gain) Loss Recognized in Income | $ (5) | 0 | |
Not Designated as Hedging Instrument | Commodity Contract | Cost of sales | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Amount of (Gain) Loss Recognized in Income | 35 | 10 | |
Not Designated as Hedging Instrument | Commodity Contract | SG&A expenses | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Amount of (Gain) Loss Recognized in Income | (22) | 15 | |
Not Designated as Hedging Instrument | Interest Rate Contract | Interest expense | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Amount of (Gain) Loss Recognized in Income | (7) | (7) | |
Not Designated as Hedging Instrument | Foreign Exchange Forward | Cost of sales | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Amount of (Gain) Loss Recognized in Income | 6 | ||
Not Designated as Hedging Instrument | Foreign Exchange Forward | Other (income) expense, net | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Amount of (Gain) Loss Recognized in Income | (6) | (18) | 27 |
Designated as Hedging Instrument | Foreign Exchange Forward | Cost of sales | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Derivative, Gain (Loss) on Derivative, Net | $ 2 | $ 0 | $ 0 |
Leases (Details)
Leases (Details) - USD ($) $ in Millions | 12 Months Ended | |||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | ||
Operating Leased Assets [Line Items] | ||||
Leases not yet commenced, estimated obligation | $ 625 | |||
Operating Lease, Liability, Current, Statement of Financial Position [Extensible List] | us-gaap:OtherLiabilitiesCurrent | us-gaap:OtherLiabilitiesCurrent | ||
Lease, Cost [Abstract] | ||||
Operating Lease, Cost | $ 113 | $ 82 | ||
Finance Lease, Right-of-Use Asset, Amortization | 47 | 48 | ||
Finance Lease, Interest Expense | 14 | 15 | ||
Variable Lease, Cost | [1] | 27 | 28 | |
Short-term Lease, Cost | 1 | 5 | ||
Sublease Income | 2 | 3 | ||
Lease, Cost | 200 | 175 | ||
Cash Flow, Operating Activities, Lessee [Abstract] | ||||
Operating Lease, Payments | 103 | 77 | ||
Finance Lease, Interest Payment on Liability | 14 | 15 | ||
Cash Flow, Financing Activities, Lessee [Abstract] | ||||
Finance Lease, Principal Payments | $ 52 | $ 38 | $ 17 | |
Lessee, Operating Lease, Description [Abstract] | ||||
Operating Lease, Weighted Average Discount Rate, Percent | 4.30% | 4.60% | ||
Operating Lease, Weighted Average Remaining Lease Term | 12 years | 10 years | ||
Lessee, Finance Lease, Description [Abstract] | ||||
Finance Lease, Weighted Average Discount Rate, Percent | 4.40% | 5.10% | ||
Finance Lease, Weighted Average Remaining Lease Term | 11 years | 12 years | ||
Operating Lease Liabilities, Payments Due [Abstract] | ||||
Lessee, Operating Lease, Liability, Payments, Due Next Twelve Months | $ 90 | |||
Lessee, Operating Lease, Liability, Payments, Due Year Two | 84 | |||
Lessee, Operating Lease, Liability, Payments, Due Year Three | 75 | |||
Lessee, Operating Lease, Liability, Payments, Due Year Four | 72 | |||
Lessee, Operating Lease, Liability, Payments, Due Year Five | 65 | |||
Lessee, Operating Lease, Liability, Payments, Due after Year Five | 444 | |||
Lessee, Operating Lease, Liability, Payments, Due | 830 | |||
Lessee, Operating Lease, Liability, Undiscounted Excess Amount | 178 | |||
Operating Lease, Liability | 652 | |||
Finance Lease Liabilities, Payments, Due [Abstract] | ||||
Finance Lease, Liability, Payments, Due Next Twelve Months | 58 | |||
Finance Lease, Liability, Payments, Due Year Two | 51 | |||
Finance Lease, Liability, Payments, Due Year Three | 48 | |||
Finance Lease, Liability, Payments, Due Year Four | 45 | |||
Finance Lease, Liability, Payments, Due Year Five | 42 | |||
Finance Lease, Liability, Payments, Due after Year Five | 183 | |||
Finance Lease, Liability, Payments, Due | 427 | |||
Finance Lease, Liability, Undiscounted Excess Amount | 85 | |||
Finance Lease, Liability | $ 342 | |||
Minimum | ||||
Operating Leased Assets [Line Items] | ||||
Initial lease term | 1 year | |||
Maximum | ||||
Operating Leased Assets [Line Items] | ||||
Initial lease term | 17 years | |||
[1] | Variable lease cost primarily consists of common area maintenance costs, property taxes, and adjustments for inflation. |
Leases - Sale Leaseback Transac
Leases - Sale Leaseback Transactions (Details) - USD ($) $ in Millions | 12 Months Ended | |||||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | Jan. 10, 2020 | Jan. 06, 2020 | Dec. 23, 2019 | |
Sale Leaseback Transaction [Line Items] | ||||||
Impairment of Long-Lived Assets Held-for-use | $ 1 | $ 24 | $ 0 | |||
Distribution Properties | ||||||
Sale Leaseback Transaction [Line Items] | ||||||
Sale Leaseback Transaction, Net Proceeds, Investing Activities | 50 | |||||
Sale Leaseback Transaction, Net Book Value | $ 27 | |||||
Sale and Leaseback Transaction, Gain (Loss), Net | 23 | |||||
Manufacturing Properties | ||||||
Sale Leaseback Transaction [Line Items] | ||||||
Sale Leaseback Transaction, Net Proceeds, Investing Activities | 150 | 170 | ||||
Sale Leaseback Transaction, Net Book Value | $ 131 | $ 140 | ||||
Sale and Leaseback Transaction, Gain (Loss), Net | $ 19 | 30 | ||||
Plano Headquarters | ||||||
Sale Leaseback Transaction [Line Items] | ||||||
Sale Leaseback Transaction, Net Proceeds, Investing Activities | 49 | |||||
Sale and Leaseback Transaction, Gain (Loss), Net | 0 | |||||
Impairment of Long-Lived Assets Held-for-use | 5 | |||||
Waterbury VT | ||||||
Sale Leaseback Transaction [Line Items] | ||||||
Sale Leaseback Transaction, Net Proceeds, Investing Activities | 8 | |||||
Sale and Leaseback Transaction, Gain (Loss), Net | 0 | |||||
Impairment of Long-Lived Assets Held-for-use | $ 12 |
Employee Benefit Plans (Details
Employee Benefit Plans (Details) $ in Millions | 12 Months Ended | |||
Dec. 31, 2021USD ($) | Dec. 31, 2020USD ($) | Dec. 31, 2019USD ($) | Dec. 31, 2018USD ($) | |
Defined Benefit Plan, Amounts for Asset (Liability) Recognized in Statement of Financial Position [Abstract] | ||||
Non-current liability | $ (38) | $ (29) | ||
Defined Benefit Plan, Plan with Accumulated Benefit Obligation in Excess of Plan Assets [Abstract] | ||||
Aggregate projected benefit obligation | 87 | 97 | ||
Aggregate accumulated benefit obligation | 84 | 96 | ||
Aggregate fair value of plan assets | $ 61 | $ 71 | ||
US Plan Assets Percentage of All Plans | 0.98 | |||
US PBO Percentage of All Plans | 0.95 | |||
Weighted Average | ||||
Defined Benefit Plan, Assumptions Used in Calculations [Abstract] | ||||
Weighted average discount rate | 3.30% | 3.30% | 4.25% | |
Weighted average discount rate | 2.55% | 3.30% | ||
Rate of increase in compensation levels | 3.00% | 3.00% | ||
Rate of increase in compensation levels | 3.00% | 3.00% | 3.00% | |
Expected long-term rate of return | 4.00% | 4.00% | 5.25% | |
U.S. equity securities | Minimum | ||||
Defined Benefit Plan, Assumptions Used in Calculations [Abstract] | ||||
Defined Benefit Plan, Plan Assets, Target Allocation, Percentage | 5.00% | |||
U.S. equity securities | Maximum | ||||
Defined Benefit Plan, Assumptions Used in Calculations [Abstract] | ||||
Defined Benefit Plan, Plan Assets, Target Allocation, Percentage | 15.00% | |||
International equity securities | Minimum | ||||
Defined Benefit Plan, Assumptions Used in Calculations [Abstract] | ||||
Defined Benefit Plan, Plan Assets, Target Allocation, Percentage | 5.00% | |||
International equity securities | Maximum | ||||
Defined Benefit Plan, Assumptions Used in Calculations [Abstract] | ||||
Defined Benefit Plan, Plan Assets, Target Allocation, Percentage | 15.00% | |||
Fixed income securities | Minimum | ||||
Defined Benefit Plan, Assumptions Used in Calculations [Abstract] | ||||
Defined Benefit Plan, Plan Assets, Target Allocation, Percentage | 70.00% | |||
Fixed income securities | Maximum | ||||
Defined Benefit Plan, Assumptions Used in Calculations [Abstract] | ||||
Defined Benefit Plan, Plan Assets, Target Allocation, Percentage | 90.00% | |||
Pension Plan [Member] | ||||
Increase (Decrease) in Obligation, Pension and Other Postretirement Benefits [Abstract] | ||||
Defined Benefit Plan, Benefit Obligation | $ 228 | $ 226 | $ 206 | |
Service cost | 3 | 2 | $ 1 | |
Interest cost | 7 | 9 | 5 | |
Actuarial losses, net | 22 | 24 | ||
Benefits paid | (4) | (7) | ||
Impact of changes in FX rates | (1) | 1 | ||
Settlements | (25) | (9) | ||
Defined Benefit Plan, Benefit Obligation | 228 | 226 | 206 | |
Defined Benefit Plan, Change in Fair Value of Plan Assets [Roll Forward] | ||||
Defined Benefit Plan, Plan Assets, Amount | 203 | 204 | 178 | |
Actual return on plan assets | 28 | 39 | ||
Employer contributions | 1 | 2 | ||
Benefits paid | (4) | (7) | ||
Impact of changes in FX rates | (1) | 1 | ||
Settlements | (25) | (9) | ||
Defined Benefit Plan, Plan Assets, Amount | 203 | 204 | 178 | |
Defined Benefit Plan, Amounts for Asset (Liability) Recognized in Statement of Financial Position [Abstract] | ||||
Net liability recognized | (25) | (22) | ||
Non-current assets | 11 | 4 | ||
Current liability | (1) | (1) | ||
Non-current liability | (35) | (25) | ||
Defined Benefit Plan, Plan with Accumulated Benefit Obligation in Excess of Plan Assets [Abstract] | ||||
Defined Benefit Plan, Accumulated Benefit Obligation | 208 | 223 | ||
Defined Benefit Plan, Net Periodic Benefit Cost (Credit) [Abstract] | ||||
Service cost | 3 | 2 | 1 | |
Interest cost | 7 | 9 | 5 | |
Expected return on assets | (8) | (9) | (5) | |
Settlements | (1) | (1) | 0 | |
Total net periodic benefit costs | 1 | 1 | $ 1 | |
Defined Benefit Plan, Accumulated Other Comprehensive (Income) Loss, before Tax [Abstract] | ||||
Defined Benefit Plan, Accumulated Other Comprehensive Income (Loss), Gain (Loss), before Tax | 3 | 0 | ||
Defined Benefit Plan, Expected Future Benefit Payment [Abstract] | ||||
Defined Benefit Plan, Expected Future Benefit Payment, Next Twelve Months | 11 | |||
Defined Benefit Plan, Expected Future Benefit Payment, Year Two | 11 | |||
Defined Benefit Plan, Expected Future Benefit Payment, Year Three | 12 | |||
Defined Benefit Plan, Expected Future Benefit Payment, Year Four | 12 | |||
Defined Benefit Plan, Expected Future Benefit Payment, Year Five | 12 | |||
Defined Benefit Plan, Expected Future Benefit Payment, Five Fiscal Years Thereafter | 60 | |||
Pension Plan [Member] | Cash and cash equivalents | Level 1 | ||||
Defined Benefit Plan, Change in Fair Value of Plan Assets [Roll Forward] | ||||
Defined Benefit Plan, Plan Assets, Amount | 8 | 3 | ||
Defined Benefit Plan, Plan Assets, Amount | 8 | 3 | ||
Pension Plan [Member] | U.S. equity securities | Level 2 | ||||
Defined Benefit Plan, Change in Fair Value of Plan Assets [Roll Forward] | ||||
Defined Benefit Plan, Plan Assets, Amount | 22 | 21 | ||
Defined Benefit Plan, Plan Assets, Amount | 22 | 21 | ||
Pension Plan [Member] | International equity securities | Level 2 | ||||
Defined Benefit Plan, Change in Fair Value of Plan Assets [Roll Forward] | ||||
Defined Benefit Plan, Plan Assets, Amount | 12 | 10 | ||
Defined Benefit Plan, Plan Assets, Amount | 12 | 10 | ||
Pension Plan [Member] | International fixed income securities | Level 2 | ||||
Defined Benefit Plan, Change in Fair Value of Plan Assets [Roll Forward] | ||||
Defined Benefit Plan, Plan Assets, Amount | 4 | 15 | ||
Defined Benefit Plan, Plan Assets, Amount | $ 4 | $ 15 | ||
Pension Plan [Member] | Fixed income securities | ||||
Defined Benefit Plan, Assumptions Used in Calculations [Abstract] | ||||
Defined Benefit Plan, Plan Assets, Target Allocation, Percentage | 80.00% | 80.00% | ||
Defined Benefit Plan, Plan Assets, Actual Allocation, Percentage | 3.40% | 3.10% | ||
Pension Plan [Member] | Fixed income securities | Level 2 | ||||
Defined Benefit Plan, Change in Fair Value of Plan Assets [Roll Forward] | ||||
Defined Benefit Plan, Plan Assets, Amount | 157 | $ 155 | ||
Defined Benefit Plan, Plan Assets, Amount | $ 157 | $ 155 | ||
Pension Plan [Member] | Equity securities | ||||
Defined Benefit Plan, Assumptions Used in Calculations [Abstract] | ||||
Defined Benefit Plan, Plan Assets, Target Allocation, Percentage | 20.00% | 20.00% | ||
Defined Benefit Plan, Plan Assets, Actual Allocation, Percentage | 7.40% | 7.50% | ||
Other Postretirement Benefits Plan [Member] | ||||
Defined Benefit Plan, Change in Fair Value of Plan Assets [Roll Forward] | ||||
Defined Benefit Plan, Plan Assets, Amount | 10 | $ 8 | ||
Defined Benefit Plan, Plan Assets, Amount | 10 | $ 8 | ||
Other Postretirement Benefits Plan [Member] | Cash and cash equivalents | Level 1 | ||||
Defined Benefit Plan, Change in Fair Value of Plan Assets [Roll Forward] | ||||
Defined Benefit Plan, Plan Assets, Amount | 1 | 0 | ||
Defined Benefit Plan, Plan Assets, Amount | 1 | 0 | ||
Other Postretirement Benefits Plan [Member] | U.S. equity securities | Level 2 | ||||
Defined Benefit Plan, Change in Fair Value of Plan Assets [Roll Forward] | ||||
Defined Benefit Plan, Plan Assets, Amount | 1 | 1 | ||
Defined Benefit Plan, Plan Assets, Amount | 1 | 1 | ||
Other Postretirement Benefits Plan [Member] | International equity securities | Level 2 | ||||
Defined Benefit Plan, Change in Fair Value of Plan Assets [Roll Forward] | ||||
Defined Benefit Plan, Plan Assets, Amount | 7 | 6 | ||
Defined Benefit Plan, Plan Assets, Amount | 7 | 6 | ||
Other Postretirement Benefits Plan [Member] | International fixed income securities | Level 2 | ||||
Defined Benefit Plan, Change in Fair Value of Plan Assets [Roll Forward] | ||||
Defined Benefit Plan, Plan Assets, Amount | 0 | 0 | ||
Defined Benefit Plan, Plan Assets, Amount | 0 | 0 | ||
Other Postretirement Benefits Plan [Member] | Fixed income securities | Level 2 | ||||
Defined Benefit Plan, Change in Fair Value of Plan Assets [Roll Forward] | ||||
Defined Benefit Plan, Plan Assets, Amount | 1 | 1 | ||
Defined Benefit Plan, Plan Assets, Amount | $ 1 | $ 1 | ||
Scenario, Forecast [Member] | ||||
Defined Benefit Plan, Net Periodic Benefit Cost (Credit) [Abstract] | ||||
Other Comprehensive Income (Loss), Defined Benefit Plan, Gain (Loss), Reclassification Adjustment from AOCI, before Tax | $ 0 |
Employee Benefit Plans - Multie
Employee Benefit Plans - Multiemployer Plans (Details) - USD ($) $ in Millions | 12 Months Ended | |||||||
Dec. 31, 2025 | Dec. 31, 2024 | Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Multiemployer Plans [Line Items] | ||||||||
Multiemployer Plan, Employer Contribution, Cost | $ 7 | $ 4 | $ 2 | |||||
Entity Tax Identification Number | 98-0517725 | |||||||
Central States Largest Plan [Member] | ||||||||
Multiemployer Plans [Line Items] | ||||||||
Multiemployer Plans, Collective-Bargaining Arrangement, Percentage of Employer's Participants | 56.00% | |||||||
Central States Multiemployer Plan [Member] | ||||||||
Multiemployer Plans [Line Items] | ||||||||
Entity Tax Identification Number | 36-6044243 | |||||||
Multiemployer Plan Number | 001 | |||||||
Financial Improvement Plan/Rehabilitation Plan status pending/implemented | Implemented | |||||||
Pension Protection Act zone status | Red | |||||||
Surcharge imposed | Yes | |||||||
Central States Multiemployer Plan [Member] | Scenario, Forecast [Member] | ||||||||
Multiemployer Plans [Line Items] | ||||||||
Future estimated contributions to Central States | $ 2 | $ 2 | $ 2 | $ 2 | $ 2 | |||
Central States Plans 2019 Expiration [Member] | ||||||||
Multiemployer Plans [Line Items] | ||||||||
Multiemployer Plans, Collective-Bargaining Arrangement, Percentage of Employer's Participants | 6.00% |
Employee Benefit Plans - Define
Employee Benefit Plans - Defined Contribution Plans (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Defined Contribution Plan Disclosures [Line Items] | |||
Trading Securities, Realized Gain (Loss) | $ 8 | $ 8 | $ 5 |
Defined contribution plans expense | 77 | 66 | $ 36 |
Level 1 | |||
Defined Contribution Plan Disclosures [Line Items] | |||
Debt Securities, Trading, and Equity Securities, FV-NI | $ 41 | $ 40 |
Earnings Per Share (Details)
Earnings Per Share (Details) - USD ($) $ / shares in Units, shares in Millions, $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2020 | Sep. 30, 2020 | Jun. 30, 2020 | Mar. 31, 2020 | Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Basic EPS: | |||||||||||
Net income attributable to KDP | $ 428 | $ 443 | $ 298 | $ 156 | $ 406 | $ 304 | $ 314 | $ 230 | $ 1,325 | $ 1,254 | $ 586 |
Weighted average common shares outstanding (in shares) | 1,407.2 | 1,406.7 | 1,086.3 | ||||||||
Earnings per common share - basic (in dollars per share) | $ 0.30 | $ 0.31 | $ 0.21 | $ 0.11 | $ 0.29 | $ 0.22 | $ 0.22 | $ 0.16 | $ 0.94 | $ 0.89 | $ 0.54 |
Diluted EPS: | |||||||||||
Net income attributable to KDP | $ 428 | $ 443 | $ 298 | $ 156 | $ 406 | $ 304 | $ 314 | $ 230 | $ 1,325 | $ 1,254 | $ 586 |
Weighted average common shares outstanding (in shares) | 1,407.2 | 1,406.7 | 1,086.3 | ||||||||
Effect of dilutive securities: | |||||||||||
Weighted average common shares outstanding and common stock equivalents (in shares) | 1,422.1 | 1,419.1 | 1,097.6 | ||||||||
Earnings per common share - diluted (in dollars per share) | $ 0.30 | $ 0.31 | $ 0.21 | $ 0.11 | $ 0.29 | $ 0.21 | $ 0.22 | $ 0.16 | $ 0.93 | $ 0.88 | $ 0.53 |
Anti-dilutive shares excluded from the diluted weighted average shares outstanding calculation (in shares) | 0.5 | 0 | 1.2 | ||||||||
Stock options | |||||||||||
Effect of dilutive securities: | |||||||||||
Effect of dilutive securities (in shares) | 0.3 | 0.6 | 0.9 | ||||||||
RSUs | |||||||||||
Effect of dilutive securities: | |||||||||||
Effect of dilutive securities (in shares) | 14.6 | 11.8 | 10.4 |
Stock Based Compensation (Detai
Stock Based Compensation (Details) - USD ($) $ / shares in Units, $ in Millions | Jul. 09, 2018 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 |
Employee Service Share-based Compensation, Aggregate Disclosures [Abstract] | ||||
Total stock-based compensation expense | $ 85 | $ 64 | $ 35 | |
Income tax benefit recognized in the Statements of Income | (13) | (11) | (7) | |
Stock-based compensation expense, net of tax | $ 72 | $ 53 | 28 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Number of Shares Authorized | 27,425,720 | |||
Stock Options | ||||
Balance as of beginning of the period (in shares) | 338,814 | |||
Granted (in shares) | 0 | |||
Exercised (in shares) | (143,242) | |||
Balance as of end of the period (in shares) | 195,572 | 338,814 | ||
Exercisable (in shares) | 195,572 | |||
Weighted Average Grant Date Fair Value | ||||
Balance as of the beginning of the period (in dollars per share) | $ 12.93 | |||
Granted (in dollars per share) | 0 | |||
Exercised (in dollars per share) | 14.04 | |||
Balance as of the end of the period (in dollars per share) | 12.11 | $ 12.93 | ||
Exercisable (in dollars per share) | $ 12.11 | |||
Weighted Average Remaining Contractual Term (Years) | ||||
Outstanding | 4 years 8 months 12 days | 6 years | ||
Exercisable | 4 years 8 months 12 days | |||
Aggregate Intrinsic Value (in millions) | ||||
Exercised | $ 2 | |||
Outstanding | 4 | $ 5 | ||
Exercisable | $ 4 | |||
RSUs | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Award vesting period | 4 years 6 months | |||
RSUs and PSUs | ||||
Outstanding as of beginning of the period (in shares) | 21,492,786 | |||
Granted (in shares) | 8,542,934 | |||
Vested and released (in shares) | (97,681) | |||
Forfeited (in shares) | (3,249,735) | |||
Outstanding as of end of the period (in shares) | 26,688,304 | 21,492,786 | ||
Weighted Average Grant Date Fair Value | ||||
Outstanding as of the beginning of the period (in dollars per share) | $ 18.14 | |||
Granted (in dollars per share) | 24.91 | $ 26.55 | ||
Vested and released (in dollars per share) | 16.95 | |||
Forfeited (in dollars per share) | 23.52 | |||
Outstanding as of the end of the period (in dollars per share) | $ 19.66 | $ 18.14 | ||
Weighted Average Remaining Contractual Term (Years) | ||||
Outstanding | 2 years | 2 years 7 months 6 days | ||
Aggregate Intrinsic Value (in millions) | ||||
Outstanding as of the beginning of the period | $ 622 | |||
Vested and released | 3 | $ 1 | $ 23 | |
Outstanding as of the end of the period | 854 | $ 622 | ||
Unrecognized compensation costs related to nonvested awards | $ 303 | |||
Weighted average recognition period of unrecognized compensation costs | 3 years 7 months 6 days | |||
RSUs | September 2020 NEO Grant [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Non-Option Equity Instruments, Forfeitures | 868,056 | |||
RSUs | September 2020 NEO Grant - Replacement Awards [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Non-Option Equity Instruments, Granted | 217,014 | |||
Performance Shares | ||||
RSUs and PSUs | ||||
Outstanding as of beginning of the period (in shares) | 0 | |||
Granted (in shares) | 651,042 | |||
Vested and released (in shares) | 0 | |||
Forfeited (in shares) | 0 | |||
Outstanding as of end of the period (in shares) | 651,042 | 0 | ||
Weighted Average Grant Date Fair Value | ||||
Granted (in dollars per share) | $ 28.80 | |||
Vested and released (in dollars per share) | 0 | |||
Forfeited (in dollars per share) | 0 | |||
Outstanding as of the end of the period (in dollars per share) | $ 28.80 | |||
Weighted Average Remaining Contractual Term (Years) | ||||
Outstanding | 2 years | |||
Aggregate Intrinsic Value (in millions) | ||||
Outstanding as of the end of the period | $ 21 | |||
Unrecognized compensation costs related to nonvested awards | $ 17 | |||
Weighted average recognition period of unrecognized compensation costs | 3 years | |||
PSU Fair Value Methodology | ||||
Risk Free Interest Rate | 0.10% | |||
Expected Volatility Rate | 29.83% | |||
Expected Dividend Rate | 2.08% | |||
Performance Shares | September 2020 NEO Grant - Replacement Awards [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Non-Option Equity Instruments, Granted | 651,042 |
Accumulated Other Comprehensi_3
Accumulated Other Comprehensive Income (Details) - USD ($) $ in Millions | 12 Months Ended | ||||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | |||||
Total equity at beginning of period | $ 23,257 | $ 22,533 | $ 7,398 | ||
Net current period other comprehensive income | (27) | 234 | (229) | ||
Total equity at end of period | 23,829 | 23,257 | 22,533 | ||
Accumulated Other Comprehensive Income (Loss) | |||||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | |||||
Total equity at beginning of period | 104 | (130) | 99 | ||
OCI before reclassifications | (30) | 235 | (229) | ||
Amounts reclassified from AOCI | 3 | (1) | |||
Net current period other comprehensive income | (27) | 234 | (229) | ||
Total equity at end of period | 77 | 104 | (130) | ||
Accumulated Foreign Currency Adjustment Attributable to Parent [Member] | |||||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | |||||
Total equity at beginning of period | 104 | (126) | 99 | ||
OCI before reclassifications | (9) | 230 | (225) | ||
Amounts reclassified from AOCI | 0 | 0 | |||
Net current period other comprehensive income | (9) | 230 | (225) | ||
Total equity at end of period | 95 | 104 | (126) | ||
Accumulated Defined Benefit Plans Adjustment Attributable to Parent [Member] | |||||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | |||||
Total equity at beginning of period | 0 | (4) | 0 | ||
OCI before reclassifications | (5) | 5 | (4) | ||
Amounts reclassified from AOCI | [1] | 1 | (1) | ||
Net current period other comprehensive income | (4) | 4 | (4) | ||
Total equity at end of period | (4) | 0 | (4) | ||
Accumulated Gain (Loss), Net, Cash Flow Hedge, Parent | |||||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | |||||
Total equity at beginning of period | 0 | 0 | 0 | ||
OCI before reclassifications | (16) | 0 | 0 | ||
Amounts reclassified from AOCI | 2 | [2] | 0 | ||
Net current period other comprehensive income | (14) | 0 | 0 | ||
Total equity at end of period | $ (14) | $ 0 | $ 0 | ||
[1] | Amounts reclassified from AOCI during the period represent settlement gains (losses), which are recorded to SG&A expenses within the Consolidated Statements of Income. | ||||
[2] | Amounts reclassified from AOCI during the period represent settled FX forward contracts, which are recorded to Cost of sales within the Consolidated Statements of Income. |
Property, Plant and Equipment_3
Property, Plant and Equipment (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Property, Plant and Equipment [Line Items] | |||
Land | $ 54 | $ 55 | |
Buildings and improvements | 520 | 473 | |
Machinery and equipment | 1,870 | 1,636 | |
Cold drink equipment | 80 | 78 | |
Software | 315 | 241 | |
Construction-in-progress | 393 | 274 | |
Gross property, plant and equipment | 3,232 | 2,757 | |
Less: accumulated depreciation and amortization | (1,020) | (729) | |
Net property, plant and equipment | 2,212 | 2,028 | |
Depreciation expense | 362 | 358 | $ 233 |
Cost of sales | |||
Property, Plant and Equipment [Line Items] | |||
Depreciation expense | 215 | 199 | 123 |
Selling, General and Administrative Expenses [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Depreciation expense | $ 147 | $ 159 | $ 110 |
Other Financial Information (De
Other Financial Information (Details) - USD ($) $ in Millions | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Cash, Cash Equivalents, Restricted Cash and Restricted Cash Equivalents [Abstract] | |||||
Cash and cash equivalents | $ 240 | $ 75 | |||
Restricted cash and restricted cash equivalents | 15 | 26 | |||
Non-current restricted cash and restricted cash equivalents | 0 | 10 | |||
Total cash, cash equivalents, restricted cash and restricted cash equivalents shown in the Consolidated Statement of Cash Flows | 255 | 111 | $ 139 | $ 95 | |
Inventories: | |||||
Inventory, Raw Materials, Gross | 260 | 215 | |||
Inventory, Work in Process, Gross | 6 | 8 | |||
Inventory, Finished Goods, Gross | 520 | 447 | |||
Inventory, Gross | 786 | 670 | |||
Inventory Valuation Reserves | (24) | (16) | |||
Inventories | 762 | 654 | |||
Prepaid expenses and other current assets: | |||||
Other receivables | 85 | 65 | |||
Customer incentive programs | 34 | 12 | |||
Derivative instruments | 45 | 31 | |||
Prepaid marketing | 15 | 17 | |||
Spare parts | 55 | 49 | |||
Assets held for sale | [1] | 2 | 165 | ||
Income tax receivable | 11 | 4 | |||
Other | 76 | 60 | |||
Prepaid expenses and other current assets | 323 | 403 | |||
Other non-current assets: | |||||
Customer incentive programs | 70 | 33 | |||
Marketable securities - trading | 41 | 40 | |||
Operating lease right-of-use assets | 645 | 497 | |||
Derivative instruments | 12 | 19 | |||
Equity securities without readily determinable fair values | 1 | 1 | |||
Non-current restricted cash and restricted cash equivalents | 0 | 10 | |||
Related party notes receivable | [2] | 0 | 50 | ||
Other | 125 | 98 | |||
Total other non-current assets | 894 | 748 | |||
Accrued expenses: | |||||
Customer rebates & incentives | 382 | 362 | |||
Accrued compensation | 215 | 183 | |||
Insurance reserve | 35 | 39 | |||
Interest accrual | 57 | 54 | |||
Accrued professional fees | 21 | 31 | |||
Other accrued expenses | 330 | 270 | |||
Total accrued expenses | 1,040 | 939 | |||
Other current liabilities: | |||||
Dividends payable | 212 | 212 | |||
Income taxes payable | 39 | 75 | |||
Operating Lease, Liability, Current | 72 | 69 | |||
Finance Lease, Liability, Current | 44 | 41 | |||
Derivative instruments | 25 | 12 | |||
Holdback liability | 15 | 25 | |||
Other | 9 | 11 | |||
Total other current liabilities | 416 | 445 | |||
Other non-current liabilities: | |||||
Long-term pension and postretirement liability | 38 | 29 | |||
Insurance reserves | 72 | 66 | |||
Operating Lease, Liability, Noncurrent | 580 | 427 | |||
Finance Lease, Liability, Noncurrent | 298 | 269 | |||
Derivative instruments | 18 | 4 | |||
Deferred compensation liability | 41 | 40 | |||
Other | 72 | 95 | |||
Other non-current liabilities | $ 1,119 | $ 930 | |||
Other Financial Information [Line Items] | |||||
Operating Lease, Liability, Current, Statement of Financial Position [Extensible List] | us-gaap:OtherLiabilitiesCurrent | us-gaap:OtherLiabilitiesCurrent | |||
Operating Lease, Liability, Noncurrent, Statement of Financial Position [Extensible List] | us-gaap:OtherLiabilitiesNoncurrent | us-gaap:OtherLiabilitiesNoncurrent | |||
Suppliers Utilizing Third Party Services Sold Through To Financial Institutions [Member] | |||||
Other Financial Information [Line Items] | |||||
Accounts payable | $ 2,578 | $ 2,097 | |||
[1] | The decrease in assets held for sale was due to the assets included in sale-leaseback transactions that closed during the year ended December 31, 2020. Refer to Note 9 for additional information about the transactions. The remaining amounts were comprised of property, plant and equipment expected to be sold within the next twelve months. | ||||
[2] | Refer to Note 5 for information about the impairment of the Company's related party note receivable from Bedford. |
Commitments and Contingencies -
Commitments and Contingencies - Litigation (Details) $ in Millions | 12 Months Ended |
Dec. 31, 2020USD ($) | |
Antitrust Litigation [Member] | |
Loss Contingencies [Line Items] | |
Litigation Settlement, Amount Awarded to Other Party | $ 31 |
Commitment and Contingencies -
Commitment and Contingencies - Unconditional Purchase Obligations (Details) $ in Millions | Dec. 31, 2020USD ($) |
Commitments and Contingencies Disclosure [Abstract] | |
2021 | $ 8 |
2022 | 8 |
2023 | 8 |
2024 | 8 |
2025 | 8 |
Fixed fee service commitments | $ 116 |
Commitments and Contingencies_2
Commitments and Contingencies - Financial Guarantees (Details) $ in Millions | Dec. 31, 2020USD ($) |
Commitments and Contingencies Disclosure [Abstract] | |
Maximum undiscounted amount payable under the guarantee | $ 142 |
Commitments and Contingencies_3
Commitments and Contingencies - Product Warranties (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Movement in Standard Product Warranty Accrual [Roll Forward] | ||
Balance as of beginning of the period | $ 8 | $ 8 |
Accruals for warranties issued | 15 | 9 |
Settlements | (13) | (9) |
Balance as of end of the period | $ 10 | $ 8 |
Related Parties (Details)
Related Parties (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Related Party Transactions [Abstract] | |||
Related party trade accounts receivables, net | $ 18 | $ 13 | |
Accounts payables, related parties | 13 | 18 | |
Receipts from related parties | 112 | 93 | $ 214 |
Payments to related parties | $ 73 | $ 57 | $ 150 |
JAB Ownership equity method ownership interest in KDP | 34.00% |
Segments - Schedules of Results
Segments - Schedules of Results (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2020 | Sep. 30, 2020 | Jun. 30, 2020 | Mar. 31, 2020 | Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Segment Results – Income from operations | |||||||||||
Net sales | $ 3,121 | $ 3,020 | $ 2,864 | $ 2,613 | $ 2,934 | $ 2,870 | $ 2,812 | $ 2,504 | $ 11,618 | $ 11,120 | $ 7,442 |
Income from operations | $ 700 | $ 753 | $ 561 | $ 466 | $ 713 | $ 580 | $ 587 | $ 498 | 2,480 | 2,378 | 1,237 |
Beverage Concentrates | |||||||||||
Segment Results – Income from operations | |||||||||||
Net sales | 1,325 | 1,414 | 669 | ||||||||
Packaged Beverages | |||||||||||
Segment Results – Income from operations | |||||||||||
Net sales | 5,363 | 4,945 | 2,415 | ||||||||
Latin America Beverages | |||||||||||
Segment Results – Income from operations | |||||||||||
Net sales | 497 | 528 | 244 | ||||||||
Coffee Systems | |||||||||||
Segment Results – Income from operations | |||||||||||
Net sales | 4,433 | 4,233 | 4,114 | ||||||||
Operating Segments | Beverage Concentrates | |||||||||||
Segment Results – Income from operations | |||||||||||
Net sales | 1,325 | 1,414 | 669 | ||||||||
Income from operations | 932 | 955 | 430 | ||||||||
Operating Segments | Packaged Beverages | |||||||||||
Segment Results – Income from operations | |||||||||||
Net sales | 5,363 | 4,945 | 2,415 | ||||||||
Income from operations | 822 | 757 | 257 | ||||||||
Operating Segments | Latin America Beverages | |||||||||||
Segment Results – Income from operations | |||||||||||
Net sales | 497 | 528 | 244 | ||||||||
Income from operations | 105 | 85 | 29 | ||||||||
Operating Segments | Coffee Systems | |||||||||||
Segment Results – Income from operations | |||||||||||
Net sales | 4,433 | 4,233 | 4,114 | ||||||||
Income from operations | 1,268 | 1,219 | 1,163 | ||||||||
Corporate Unallocated | |||||||||||
Segment Results – Income from operations | |||||||||||
Income from operations | $ (647) | $ (638) | $ (642) |
Segments - Assets by Segment (D
Segments - Assets by Segment (Details) - USD ($) $ in Millions | Dec. 31, 2020 | Dec. 31, 2019 |
Segment Reporting Information [Line Items] | ||
Identifiable operating assets | $ 49,691 | $ 49,367 |
Investments in unconsolidated affiliates | 88 | 151 |
Total assets | 49,779 | 49,518 |
Property, plant and equipment, net | 2,212 | 2,028 |
U.S. | ||
Segment Reporting Information [Line Items] | ||
Property, plant and equipment, net | 1,893 | 1,770 |
International | ||
Segment Reporting Information [Line Items] | ||
Property, plant and equipment, net | 319 | 258 |
Operating Segments | ||
Segment Reporting Information [Line Items] | ||
Identifiable operating assets | 49,173 | 48,932 |
Operating Segments | Beverage Concentrates | ||
Segment Reporting Information [Line Items] | ||
Identifiable operating assets | 20,575 | 20,447 |
Operating Segments | Packaged Beverages | ||
Segment Reporting Information [Line Items] | ||
Identifiable operating assets | 11,540 | 11,399 |
Operating Segments | Latin America Beverages | ||
Segment Reporting Information [Line Items] | ||
Identifiable operating assets | 1,763 | 1,856 |
Operating Segments | Coffee Systems | ||
Segment Reporting Information [Line Items] | ||
Identifiable operating assets | 15,295 | 15,230 |
Corporate Unallocated | ||
Segment Reporting Information [Line Items] | ||
Identifiable operating assets | $ 518 | $ 435 |
Segments - Revenue by Geography
Segments - Revenue by Geography (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2020 | Sep. 30, 2020 | Jun. 30, 2020 | Mar. 31, 2020 | Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Segment Reporting Information [Line Items] | |||||||||||
Net sales | $ 3,121 | $ 3,020 | $ 2,864 | $ 2,613 | $ 2,934 | $ 2,870 | $ 2,812 | $ 2,504 | $ 11,618 | $ 11,120 | $ 7,442 |
U.S. | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Net sales | 10,318 | 9,843 | 6,608 | ||||||||
International | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Net sales | $ 1,300 | $ 1,277 | $ 834 |
Segments - Major Customers (Det
Segments - Major Customers (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Walmart [Member] | |||
Revenue, Major Customer [Line Items] | |||
Revenues | $ 1,782 | $ 1,483 | $ 1,053 |
Revenue Recognition (Details)
Revenue Recognition (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||||||
Dec. 31, 2020 | Sep. 30, 2020 | Jun. 30, 2020 | Mar. 31, 2020 | Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |||||
Disaggregation of Revenue [Line Items] | |||||||||||||||
Net sales | $ 3,121 | $ 3,020 | $ 2,864 | $ 2,613 | $ 2,934 | $ 2,870 | $ 2,812 | $ 2,504 | $ 11,618 | $ 11,120 | $ 7,442 | ||||
CSD | |||||||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||||||
Net sales | [1] | 4,154 | 3,984 | 1,914 | |||||||||||
NCB | |||||||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||||||
Net sales | [1] | 2,622 | 2,476 | 1,228 | |||||||||||
Pods | |||||||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||||||
Net sales | [2] | 3,369 | 3,293 | 3,249 | |||||||||||
Appliances | |||||||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||||||
Net sales | 850 | 723 | 643 | ||||||||||||
Other | |||||||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||||||
Net sales | 623 | 644 | 408 | ||||||||||||
Beverage Concentrates | |||||||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||||||
Net sales | 1,325 | 1,414 | 669 | ||||||||||||
Beverage Concentrates | CSD | |||||||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||||||
Net sales | 1,304 | [1] | 1,385 | [1] | 656 | ||||||||||
Beverage Concentrates | NCB | |||||||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||||||
Net sales | 10 | [1] | 13 | [1] | 6 | ||||||||||
Beverage Concentrates | Pods | |||||||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||||||
Net sales | 0 | 0 | 0 | ||||||||||||
Beverage Concentrates | Appliances | |||||||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||||||
Net sales | 0 | 0 | 0 | ||||||||||||
Beverage Concentrates | Other | |||||||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||||||
Net sales | 11 | 16 | 7 | ||||||||||||
Packaged Beverages | |||||||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||||||
Net sales | 5,363 | 4,945 | 2,415 | ||||||||||||
Packaged Beverages | CSD | |||||||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||||||
Net sales | [1] | 2,489 | 2,219 | 1,084 | |||||||||||
Packaged Beverages | NCB | |||||||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||||||
Net sales | [1] | 2,477 | 2,317 | 1,153 | |||||||||||
Packaged Beverages | Pods | |||||||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||||||
Net sales | 0 | 0 | 0 | [2] | |||||||||||
Packaged Beverages | Appliances | |||||||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||||||
Net sales | 0 | 0 | 0 | ||||||||||||
Packaged Beverages | Other | |||||||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||||||
Net sales | 397 | 409 | 178 | ||||||||||||
Latin America Beverages | |||||||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||||||
Net sales | 497 | 528 | 244 | ||||||||||||
Latin America Beverages | CSD | |||||||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||||||
Net sales | [1] | 361 | 380 | 174 | |||||||||||
Latin America Beverages | NCB | |||||||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||||||
Net sales | [1] | 135 | 146 | 69 | |||||||||||
Latin America Beverages | Pods | |||||||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||||||
Net sales | 0 | 0 | 0 | [2] | |||||||||||
Latin America Beverages | Appliances | |||||||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||||||
Net sales | 0 | 0 | 0 | ||||||||||||
Latin America Beverages | Other | |||||||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||||||
Net sales | 1 | 2 | 1 | ||||||||||||
Coffee Systems | |||||||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||||||
Net sales | 4,433 | 4,233 | 4,114 | ||||||||||||
Coffee Systems | CSD | |||||||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||||||
Net sales | 0 | 0 | 0 | [1] | |||||||||||
Coffee Systems | NCB | |||||||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||||||
Net sales | 0 | 0 | 0 | [1] | |||||||||||
Coffee Systems | Pods | |||||||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||||||
Net sales | 3,369 | 3,293 | [2] | 3,249 | [2] | ||||||||||
Coffee Systems | Appliances | |||||||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||||||
Net sales | 850 | 723 | 643 | ||||||||||||
Coffee Systems | Other | |||||||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||||||
Net sales | $ 214 | $ 217 | $ 222 | ||||||||||||
[1] | Represents net sales of owned and partner brands within the Company's 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. |
Unaudited Quarterly Financial_3
Unaudited Quarterly Financial Information (Details) - USD ($) $ / shares in Units, $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2020 | Sep. 30, 2020 | Jun. 30, 2020 | Mar. 31, 2020 | Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Quarterly Financial Information Disclosure [Abstract] | |||||||||||
Net sales | $ 3,121 | $ 3,020 | $ 2,864 | $ 2,613 | $ 2,934 | $ 2,870 | $ 2,812 | $ 2,504 | $ 11,618 | $ 11,120 | $ 7,442 |
Cost of sales | 1,353 | 1,316 | 1,302 | 1,161 | 1,241 | 1,245 | 1,186 | 1,106 | 5,132 | 4,778 | 3,560 |
Gross profit | 1,768 | 1,704 | 1,562 | 1,452 | 1,693 | 1,625 | 1,626 | 1,398 | 6,486 | 6,342 | 3,882 |
Selling, general and administrative expenses | 1,000 | 949 | 1,001 | 1,028 | 1,011 | 1,012 | 1,028 | 911 | 3,978 | 3,962 | 2,635 |
Impairment of intangible assets | 67 | 0 | 0 | 0 | 67 | 0 | 0 | ||||
Other operating (income) expense, net | 1 | 2 | 0 | (42) | (31) | 33 | 11 | (11) | (39) | 2 | 10 |
Income from operations | 700 | 753 | 561 | 466 | 713 | 580 | 587 | 498 | 2,480 | 2,378 | 1,237 |
Interest expense | 146 | 148 | 157 | 153 | 157 | 158 | 170 | 169 | 604 | 654 | 401 |
Loss on early extinguishment of debt | 0 | 0 | 2 | 2 | 2 | 0 | 0 | 9 | 4 | 11 | 13 |
Impairment on investment and note receivable of unconsolidated affiliate | 0 | (16) | 0 | (86) | 102 | 0 | 0 | ||||
Other expense (income), net | (4) | 5 | (4) | 20 | 4 | 9 | 1 | 5 | 17 | 19 | (19) |
Income before provision for income taxes | 558 | 584 | 406 | 205 | 550 | 413 | 416 | 315 | 1,753 | 1,694 | 791 |
Provision for income taxes | 130 | 141 | 108 | 49 | 144 | 109 | 102 | 85 | 428 | 440 | 202 |
Net income | 428 | 443 | 298 | 156 | 1,325 | 1,254 | 589 | ||||
Less: Net income attributable to non-controlling interest | 0 | 0 | 0 | 0 | 0 | 0 | 3 | ||||
Net income attributable to KDP | $ 428 | $ 443 | $ 298 | $ 156 | $ 406 | $ 304 | $ 314 | $ 230 | $ 1,325 | $ 1,254 | $ 586 |
Basic (in dollars per share) | $ 0.30 | $ 0.31 | $ 0.21 | $ 0.11 | $ 0.29 | $ 0.22 | $ 0.22 | $ 0.16 | $ 0.94 | $ 0.89 | $ 0.54 |
Diluted (in dollars per share) | $ 0.30 | $ 0.31 | $ 0.21 | $ 0.11 | $ 0.29 | $ 0.21 | $ 0.22 | $ 0.16 | $ 0.93 | $ 0.88 | $ 0.53 |