Cover Page
Cover Page - USD ($) $ in Billions | 12 Months Ended | ||
Dec. 31, 2021 | Feb. 22, 2022 | Jun. 30, 2021 | |
Cover [Abstract] | |||
Document Type | 10-K | ||
Document Annual Report | true | ||
Document Transition Report | false | ||
Document Period End Date | Dec. 31, 2021 | ||
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 | 1,418,158,363 | ||
Current Fiscal Year End Date | --12-31 | ||
Amendment Flag | false | ||
Document Fiscal Year Focus | 2021 | ||
Document Fiscal Period Focus | FY | ||
Entity Central Index Key | 0001418135 | ||
Entity Public Float | $ 29.5 | ||
ICFR Auditor Attestation Flag | true | ||
Auditor Name | DELOITTE & TOUCHE LLP | ||
Auditor Location | Boston, Massachusetts | ||
Auditor Firm ID | 34 |
Consolidated Statements of Inco
Consolidated Statements of Income - USD ($) shares in Millions, $ in Millions | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Income Statement [Abstract] | |||
Net sales | $ 12,683 | $ 11,618 | $ 11,120 |
Cost of sales | 5,706 | 5,132 | 4,778 |
Gross profit | 6,977 | 6,486 | 6,342 |
Selling, general and administrative expenses | 4,153 | 3,978 | 3,962 |
Impairment of intangible assets | 0 | 67 | 0 |
Other operating (income) expense, net | (70) | (39) | 2 |
Income from operations | 2,894 | 2,480 | 2,378 |
Interest expense | 500 | 604 | 654 |
Loss on early extinguishment of debt | 105 | 4 | 11 |
Gain on sale of equity method investment | (524) | 0 | 0 |
Impairment of investments and note receivable | 17 | 102 | 0 |
Other (income) expense, net | (2) | 17 | 19 |
Income before provision for income taxes | 2,798 | 1,753 | 1,694 |
Provision for income taxes | 653 | 428 | 440 |
Net income including non-controlling interest | 2,145 | 1,325 | 1,254 |
Less: Net loss attributable to non-controlling interest | (1) | 0 | 0 |
Net income attributable to KDP | $ 2,146 | $ 1,325 | $ 1,254 |
Earnings per common share: | |||
Basic (in dollars per share) | $ 1.52 | $ 0.94 | $ 0.89 |
Diluted (in dollars per share) | $ 1.50 | $ 0.93 | $ 0.88 |
Weighted average common shares outstanding: | |||
Basic (in shares) | 1,415.7 | 1,407.2 | 1,406.7 |
Diluted (in shares) | 1,427.9 | 1,422.1 | 1,419.1 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Statement of Comprehensive Income [Abstract] | |||
Net income attributable to KDP | $ 2,145 | $ 1,325 | $ 1,254 |
Foreign currency translation adjustments | (14) | (9) | 230 |
Net change in pension and post-retirement liability | 0 | (4) | 4 |
Other Comprehensive Income (Loss), Cash Flow Hedge, Gain (Loss), after Reclassification and Tax | (89) | (14) | 0 |
Other comprehensive income (loss), net of tax | (103) | (27) | 234 |
Comprehensive income | 2,042 | 1,298 | 1,488 |
Comprehensive income attributable to non-controlling interest | 0 | 0 | 0 |
Comprehensive income attributable to KDP | $ 2,042 | $ 1,298 | $ 1,488 |
Consolidated Statements of Co_2
Consolidated Statements of Comprehensive Income - Parentheticals - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Statement of Comprehensive Income [Abstract] | |||
Other Comprehensive (Income) Loss, Defined Benefit Plan, after Reclassification Adjustment, Tax | $ 0 | $ 1 | $ (1) |
Other Comprehensive Income (Loss), Cash Flow Hedge, Gain (Loss), after Reclassification, Tax | $ 30 | $ 1 | $ 0 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Millions | Dec. 31, 2021 | Dec. 31, 2020 |
Current assets: | ||
Cash and cash equivalents | $ 567 | $ 240 |
Restricted cash and restricted cash equivalents | 1 | 15 |
Trade accounts receivable, net | 1,148 | 1,048 |
Inventories | 894 | 762 |
Prepaid expenses and other current assets | 447 | 323 |
Total current assets | 3,057 | 2,388 |
Property, plant and equipment, net | 2,494 | 2,212 |
Investments in unconsolidated affiliates | 30 | 88 |
Goodwill | 20,182 | 20,184 |
Other intangible assets, net | 23,856 | 23,968 |
Other non-current assets | 937 | 894 |
Deferred tax assets | 42 | 45 |
Total assets | 50,598 | 49,779 |
Current liabilities: | ||
Accounts payable | 4,316 | 3,740 |
Accrued expenses | 1,110 | 1,040 |
Structured payables | 142 | 153 |
Short-term borrowings and current portion of long-term obligations | 304 | 2,345 |
Other current liabilities | 613 | 416 |
Total current liabilities | 6,485 | 7,694 |
Long-term obligations | 11,578 | 11,143 |
Deferred tax liabilities | 5,986 | 5,993 |
Other non-current liabilities | 1,577 | 1,119 |
Total liabilities | 25,626 | 25,949 |
Commitments and contingencies | ||
Stockholders' equity: | ||
Preferred Stock, Value, Issued | 0 | 0 |
Common Stock, Value, Issued | 14 | 14 |
Additional paid-in capital | 21,785 | 21,677 |
Retained earnings | 3,199 | 2,061 |
Accumulated other comprehensive (loss) income | (26) | 77 |
Total equity | 24,972 | 23,829 |
Stockholders' Equity Attributable to Noncontrolling Interest | 0 | 1 |
Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest | 24,972 | 23,830 |
Total liabilities and equity | $ 50,598 | $ 49,779 |
Preferred stock issued (in shares) | 0 | |
Common stock outstanding (in shares) | 1,418,119,197 | 1,407,260,676 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - $ / shares | Dec. 31, 2021 | Dec. 31, 2020 |
Stockholders' equity: | ||
Preferred stock, par value (in dollars per share) | $ 0.01 | |
Preferred stock authorized (in shares) | 15,000,000 | |
Preferred stock issued (in shares) | 0 | |
Common stock, par value (in dollars per share) | $ 0.01 | |
Common stock authorized (in shares) | 2,000,000,000 | |
Common stock issued (in shares) | 1,418,119,197 | 1,407,260,676 |
Common stock outstanding (in shares) | 1,418,119,197 | 1,407,260,676 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Adjustments to reconcile net income to net cash provided by operating activities: | |||
Depreciation expense | $ 410 | $ 362 | $ 358 |
Amortization of intangibles | 134 | 133 | 126 |
Other amortization expense | 164 | 158 | 174 |
Provision for sales returns | 63 | 54 | 43 |
Deferred income taxes | 31 | (51) | (23) |
Employee stock-based compensation expense | 88 | 85 | 64 |
Loss on early extinguishment of debt | 105 | 4 | 11 |
Gain on sale of equity method investment | (524) | 0 | 0 |
Gain (Loss) on Disposition of Property Plant Equipment | (75) | (36) | (14) |
Foreign Currency Transaction Gain (Loss), Unrealized | 9 | (1) | (24) |
Unrealized (gain) loss on derivatives | (70) | 8 | 36 |
Equity in losses of unconsolidated affiliates | 5 | 20 | 51 |
Impairment of Intangible Assets (Excluding Goodwill) | 0 | 67 | 0 |
Equity Method Investment, Other than Temporary Impairment | 17 | 102 | 0 |
Other, net | 20 | 60 | 52 |
Changes in assets and liabilities: | |||
Trade accounts receivable | (152) | (5) | (7) |
Inventories | (133) | (107) | (24) |
Income taxes receivable and payables, net | 114 | (91) | 36 |
Other current and non current assets | (243) | (435) | (324) |
Accounts payable and accrued expenses | 762 | 624 | 583 |
Other current and non current liabilities | 3 | 180 | 102 |
Net change in operating assets and liabilities | 351 | 166 | 366 |
Net cash provided by operating activities | 2,874 | 2,456 | 2,474 |
Investments in unconsolidated subsidiaries, proceeds | 578 | 0 | 0 |
Investing activities: | |||
Acquisitions of businesses | 0 | 0 | (8) |
Issuance of related party note receivable | (19) | (6) | (32) |
Investments in unconsolidated affiliates | 0 | (5) | (16) |
Purchases of property, plant and equipment | (423) | (461) | (330) |
Proceeds from Sale of Property, Plant, and Equipment | (122) | (203) | (247) |
Payments to Acquire Intangible Assets | 32 | 56 | 35 |
Other, net | (16) | 9 | 24 |
Net cash provided by (used in) investing activities | 210 | (316) | (150) |
Financing activities: | |||
Proceeds from issuance of Notes | 2,150 | 1,500 | 0 |
Repayment of Notes | (3,595) | (250) | (250) |
Proceeds from issuance of commercial paper | 5,406 | 7,288 | 16,197 |
Repayments of commercial paper | (5,257) | (8,534) | (16,030) |
Proceeds from KDP Revolver | 0 | 1,850 | 0 |
Repayment of KDP Revolver | 0 | (1,850) | 0 |
Proceeds from term loan | 0 | 0 | 2,000 |
Repayment of term loan | (425) | (955) | (3,203) |
Proceeds from issuance of common stock | 140 | 0 | 0 |
Proceeds from structured payables | 156 | 171 | 330 |
Payments on Structured Payables | (167) | (341) | (531) |
Cash dividends paid | (955) | (846) | (844) |
Tax withholdings related to net share settlements | (125) | 0 | 0 |
Payments on finance leases | (54) | (52) | (38) |
Proceeds from controlling shareholder stock transactions | 0 | 29 | 0 |
Other, net | (36) | 0 | 5 |
Net cash (used in) provided by financing activities | (2,762) | (1,990) | (2,364) |
Net change from: | |||
Operating, investing and financing activities | 322 | 150 | (40) |
Effect of exchange rate changes | (9) | (6) | 12 |
Beginning of period | 255 | 111 | 139 |
End of period | 568 | 255 | 111 |
Supplemental cash flow disclosures | |||
Other Significant Noncash Transaction, Value of Consideration Given | 0 | 0 | (11) |
Capital expenditures included in accounts payable and accrued expenses | 189 | 280 | 163 |
Transfer to Investments | 15 | 0 | 0 |
Non-Cash Acquisition of Controlling Interest | 0 | 4 | 0 |
Purchases of intangibles | 0 | 0 | 2 |
Dividends declared but not yet paid | 265 | 212 | 211 |
Cash paid for interest | 477 | 515 | 521 |
Cash paid for income taxes | 506 | 582 | 433 |
Net income | 2,146 | 1,325 | 1,254 |
Non-Cash Acquisition of Controlling Interest | $ 0 | 4 | $ 0 |
Parent | |||
Supplemental cash flow disclosures | |||
Non-Cash Acquisition of Controlling Interest | 3 | ||
Non-Cash Acquisition of Controlling Interest | $ 3 |
Consolidated Statements of Chan
Consolidated Statements of Changes in Stockholders' Equity - USD ($) $ in Millions | Total | Cumulative Effect, Period of Adoption, Adjustment | Core | Common Stock Issued | Additional Paid-In Capital | 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 | $ 22,533 | $ (5) | ||||||||
Retained Earnings (Accumulated Deficit) | (5) | |||||||||
Shares issued at beginning of period (in shares) at Dec. 31, 2018 | 1,405,900,000 | |||||||||
Total equity at beginning of period at Dec. 31, 2018 | 22,533 | $ (5) | $ 14 | $ 21,471 | $ 1,178 | $ (130) | ||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||||
Net income | 1,254 | 1,254 | ||||||||
Other comprehensive income | 234 | 234 | ||||||||
Dividends, Cash | (845) | (845) | ||||||||
Non-Cash Acquisition of Controlling Interest | 0 | |||||||||
Stock-based compensation | 75 | 75 | ||||||||
Shares issued under employee stock-based compensation plans (shares) | 900,000 | |||||||||
Shares issued at end of period (in shares) at Dec. 31, 2019 | 1,406,800,000 | |||||||||
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] | ||||||||||
Less: Net loss attributable to non-controlling interest | 0 | |||||||||
Net income attributable to KDP | 1,254 | |||||||||
Other Comprehensive Income (Loss), Net of Tax | 234 | |||||||||
Stock Issued During Period, Value, Acquisitions | $ 11 | $ 11 | ||||||||
Tax withholdings related to net share settlements | 0 | |||||||||
Stockholders' Equity Attributable to Noncontrolling Interest | 0 | |||||||||
Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest | 23,257 | |||||||||
Net income | 1,325 | 1,325 | ||||||||
Other comprehensive income | (27) | (27) | ||||||||
Dividends, Cash | (846) | (846) | ||||||||
Non-Cash Acquisition of Controlling Interest | 4 | 3 | $ 3 | $ 1 | ||||||
Stock-based compensation | 88 | 88 | ||||||||
Shares issued under employee stock-based compensation plans (shares) | 500,000 | |||||||||
Shares issued at end of period (in shares) at Dec. 31, 2020 | 1,407,300,000 | |||||||||
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] | ||||||||||
Less: Net loss attributable to non-controlling interest | 0 | |||||||||
Net income attributable to KDP | 1,325 | |||||||||
Other Comprehensive Income (Loss), Net of Tax | $ (27) | |||||||||
Common Stock, Dividends, Per Share, Declared | $ 0.60 | |||||||||
ProceedsFromDisgorgementOfShortSwingProfits | $ 29 | 29 | ||||||||
Tax withholdings related to net share settlements | 0 | |||||||||
Stockholders' Equity Attributable to Noncontrolling Interest | 1 | |||||||||
Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest | 23,830 | |||||||||
Retained Earnings (Accumulated Deficit) | 2,061 | |||||||||
Net income | 2,146 | 2,146 | ||||||||
Other comprehensive income | $ (103) | (103) | ||||||||
Issuance of common stock (in shares) | 4,300,000 | |||||||||
Stock Issued During Period, Value, New Issues | $ 140 | 140 | ||||||||
Dividends, Cash | (1,008) | (1,008) | ||||||||
Non-Cash Acquisition of Controlling Interest | 0 | |||||||||
Stock-based compensation | 93 | 93 | ||||||||
Shares issued under employee stock-based compensation plans (shares) | 6,500,000 | |||||||||
Shares issued at end of period (in shares) at Dec. 31, 2021 | 1,418,100,000 | |||||||||
Total equity at end of period at Dec. 31, 2021 | 24,972 | $ 14 | 21,785 | $ 3,199 | $ (26) | |||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||||
Less: Net loss attributable to non-controlling interest | (1) | |||||||||
Net income attributable to KDP | 2,145 | |||||||||
Other Comprehensive Income (Loss), Net of Tax | $ (103) | |||||||||
Common Stock, Dividends, Per Share, Declared | $ 0.7125 | |||||||||
Tax withholdings related to net share settlements | $ (125) | $ (125) | ||||||||
Stockholders' Equity Attributable to Noncontrolling Interest | 0 | |||||||||
Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest | 24,972 | |||||||||
Retained Earnings (Accumulated Deficit) | $ 3,199 |
Consolidated Statements of Ch_2
Consolidated Statements of Changes in Stockholders' Equity (Parentheticals) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Statement of Stockholders' Equity [Abstract] | |||
Common Stock, Dividends, Per Share, Declared | $ 0.7125 | $ 0.60 | |
ProceedsFromDisgorgementOfShortSwingProfits | $ 29 | ||
Non-Cash Acquisition of Controlling Interest | $ 0 | 4 | $ 0 |
Tax withholdings related to net share settlements | 125 | 0 | 0 |
Less: Net loss attributable to non-controlling interest | (1) | 0 | 0 |
Stock Issued During Period, Value, New Issues | $ 140 | ||
Issuance of common stock (in shares) | 4,300,000 | ||
Net current period other comprehensive loss | $ (103) | $ (27) | $ 234 |
Background and Basis of Present
Background and Basis of Presentation | 12 Months Ended |
Dec. 31, 2021 | |
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 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. BASIS OF PRESENTATION 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 would be required to consolidate VIEs for which KDP has been determined to be the primary beneficiary. To determine if KDP is the primary beneficiary, the Company assesses whether it has the power to direct the significant activities of the VIE and the obligation to absorb losses or receive benefits from the VIE that may be significant to the VIE. The Company has determined that it is not the primary beneficiary of any VIEs. However, future events may require the Company to consolidate VIEs if the Company becomes the primary beneficiary. 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, 2021, 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 2020 2019 Net cash used in financing activities: Proceeds from commercial paper Net (repayment) issuance of commercial paper $ 7,288 $ 16,197 Repayments of commercial paper Net (repayment) issuance of commercial paper (8,534) (16,030) |
Significant Accounting Policies
Significant Accounting Policies Significant Accounting Policies (Notes) | 12 Months Ended |
Dec. 31, 2021 | |
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, 2021 and 2020 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, 2021 and 2020, 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, 2021, 2020 and 2019. 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, 2021. 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) 2021 2020 2019 Balance, beginning of the period $ 21 $ 9 $ 8 Charges to (reversals of) bad debt expense (13) 17 2 Write-offs and adjustments (1) (5) (1) Balance, end of the period $ 7 $ 21 $ 9 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, 2021 and 2020 as described in Note 9. As of December 31, 2021 and 2020, Walmart accounted for approximately $157 million and $184 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 year ended December 31, 2021, the Company recorded no impairment loss. For the years ended December 31, 2020 and 2019, the Company recorded an impairment loss of $1 million and $24 million, respectively. Impairment loss is recorded in Other operating (income) expense, 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 restrictive covenants. KDP has certain leases of manufacturing and distribution properties and the Frisco headquarters that contain a residual value guarantee at the end of the term. Refer to Note 19 for additional information about the Company’s residual value guarantees. 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 the Company. 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 (income) expense, 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, equity securities with readily determinable fair value, 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 (income) expense, net in the Consolidated Statements of Income. Any gains and losses resulting from the sale of these investments are recorded in Gain on sale of equity method investment. 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. Investments with readily determinable fair values for which we do not have the ability to exercise significant influence are measured at fair value and reported in Other non-current assets in the Company's Consolidated Balance Sheets. Unrealized gains and losses on these investments are recorded in Other (income) expense, net in the Consolidated Statements of Income. Investments without readily determinable fair values for which we do not have the ability to exercise significant influence are accounted for 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 4 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: Reportable Segments Reporting Units Packaged Beverages DSD WD Coffee Systems Coffee Systems Beverage Concentrates Branded Concentrates Fountain Foodservice 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 17 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 has 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 pays amounts on behalf of the Company and sells the amounts due from the Company to a participating financial institution. The card sponsor then bills 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, 2021, 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 (income) expense, 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. 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 and interest rate 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 18. 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 18. 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. Selling, General and Administrative Expenses Transportation and Warehousing Costs The Company incurred $1,475 million, $1,326 million and $1,181 million of transportation and warehousing costs during the years ended December 31, 2021, 2020 and 2019, 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 $540 million, $489 million and $670 million for the years ended December 31, 2021, 2020 and 2019, 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 development costs |
Long-term Obligations and Borro
Long-term Obligations and Borrowing Arrangements | 12 Months Ended |
Dec. 31, 2021 | |
Debt Disclosure [Abstract] | |
Long-term Obligations and Borrowing Arrangements | Long-term Obligations and Borrowing Arrangements The following table summarizes the Company's long-term obligations: December 31, (in millions) 2021 2020 Senior unsecured notes $ 11,733 $ 13,065 Term loans — 423 Subtotal 11,733 13,488 Less - current portion (155) (2,345) Long-term obligations $ 11,578 $ 11,143 The following table summarizes the Company's short-term borrowings and current portion of long-term obligations: December 31, (in millions) 2021 2020 Commercial paper notes $ 149 $ — Current portion of long-term obligations: Senior unsecured notes 155 2,246 Term loans — 99 Short-term borrowings and current portion of long-term obligations $ 304 $ 2,345 SENIOR UNSECURED NOTES The Company's Notes consisted of the following: (in millions) December 31, Issuance Maturity Date Rate 2021 2020 2021 Merger Notes May 25, 2021 3.551% — 1,750 2021-A Notes November 15, 2021 3.200% — 250 2021-B Notes November 15, 2021 2.530% — 250 2022 Notes November 15, 2022 2.700% — 250 2023 Merger Notes May 25, 2023 4.057% 1,000 2,000 2023 Notes December 15, 2023 3.130% 500 500 2024 Notes (1) March 15, 2024 0.750% 1,150 — 2025 Merger Notes May 25, 2025 4.417% 1,000 1,000 2025 Notes November 15, 2025 3.400% 500 500 2026 Notes September 15, 2026 2.550% 400 400 2027 Notes June 15, 2027 3.430% 500 500 2028 Merger Notes May 25, 2028 4.597% 2,000 2,000 2030 Notes May 1, 2030 3.200% 750 750 2031 Notes March 15, 2031 2.250% 500 — 2038 Notes (3) May 1, 2038 7.450% 125 125 2038 Merger Notes May 25, 2038 4.985% 500 500 2045 Notes November 15, 2045 4.500% 550 550 2046 Notes December 15, 2046 4.420% 400 400 2048 Merger Notes May 25, 2048 5.085% 750 750 2050 Notes May 1, 2050 3.800% 750 750 2051 Notes March 15, 2051 3.350% 500 — Principal amount $ 11,875 $ 13,225 Adjustment from principal amount to carrying amount (2) (142) (160) Carrying amount $ 11,733 $ 13,065 (1) The 2024 Notes may be called anytime on or after March 15, 2022, in whole or in part, at the Company’s option, at a redemption price equal to 100% of the principal amount being redeemed, plus accrued and unpaid interest. (2) The carrying amount includes unamortized discounts, debt issuance costs and fair value adjustments related to the DPS Merger. (3) On January 24, 2022, the Company redeemed and retired the remainder of its 2038 Notes. Notice was provided to external parties of the Company’s intention to redeem the 2038 Notes prior to December 31, 2021, therefore the Notes have been reclassified and are reported in Current portion of long-term obligations within the Consolidated Balance Sheets. Refer to Note 21 for additional information. On March 15, 2021, the Company completed the issuance of the 2024 Notes, the 2031 Notes, and the 2051 Notes. The discount associated with these notes was approximately $3 million and the Company incurred $13 million in debt issuance costs. The net proceeds from the issuance were used to repay the Company’s 2021-A Notes, 2021-B Notes, 2022 Notes, and approximately $1 billion of the 2023 Merger Notes, as well as to repay and terminate the 2019 KDP Term Loan as described below. As a result of the repayments of senior unsecured notes, the Company recorded losses on early extinguishment of debt of $104 million during the year ended December 31, 2021, comprised of a make-whole premium, fair market value adjustments and deferred financing fees written off. 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, 2021, 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) 2021 2020 Issuance Maturity Date Available Balances Carrying Value Carrying Value 2019 KDP Term Loan February 8, 2023 — — 425 KDP Revolver (1) February 28, 2023 2,400 — — 2020 364-Day Credit Agreement April 13, 2021 — — — 2021 364-Day Credit Agreement March 23, 2022 1,500 — — Principal amount $ — $ 425 Unamortized debt issuance costs — (2) Carrying amount $ — $ 423 (1) The KDP Revolver has $200 million letters of credit available, none of which were utilized as of December 31, 2021. 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, 2021, the Company was in compliance with its financial covenant requirement relating to the KDP Credit Agreements. 2019 KDP Term Loan In March 2021, the Company terminated its 2019 KDP Term Loan using proceeds from the aforementioned issuance of senior unsecured notes. As a result of the extinguishment of the 2019 KDP Term Loan, the Company recorded approximately $1 million of loss on early extinguishment during the year ended December 31, 2021. The 2019 KDP Term Loan had an original maturity date of February 8, 2023. 364-Day Credit Agreements In March 2021, KDP terminated its 2020 364-Day Credit Agreement, which originally was available through April 13, 2021. No amounts were drawn under the 2020 364-Day Credit Agreement prior to termination. KDP then entered into the 2021 364-Day Credit Agreement on March 24, 2021 among KDP, the banks party thereto and Bank of America, N.A. as administrative agent, pursuant to which KDP obtained a $1.5 billion commitment. The interest rate applicable to borrowings under the 2021 364-Day Credit Agreement ranges from a rate equal to LIBOR plus a margin of 1.000% to 1.625% or a base rate plus a margin of 0.000% to 0.625%, depending on the rating of certain indexed debt of the Company. The 2021 364-Day Credit Agreement matures on March 23, 2022, and includes a term-out option which allows KDP to extend any outstanding amounts borrowed under the agreement for one year for a fee of 0.750% on the amounts borrowed. 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 KDP has a 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. KDP classifies its commercial paper notes as short-term, as maturities do not exceed one year. 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 $149 million outstanding commercial paper notes as of December 31, 2021 and none as of December 31, 2020. 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 %) 2021 2020 2019 Weighted average commercial paper borrowings $ 943 $ 789 $ 1,754 Weighted average borrowing rates 0.25 % 1.24 % 2.56 % 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, $150 million is available for the issuance of letters of credit, $96 million of which was utilized as of December 31, 2021 and $54 million of which remains available for use. FAIR VALUE DISCLOSURES The fair values of the Company's commercial paper notes 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, 2021 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill and Other Intangible Assets | Goodwill and Other Intangible Assets GOODWILL Changes in the carrying amount of goodwill by reportable segment for the years ended December 31, 2021 and 2020 are as follows: Coffee Systems Packaged Beverages Beverage Concentrates Latin America Beverages Total 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 Foreign currency translation 5 5 3 (15) (2) Balance as of December 31, 2021 $ 9,800 $ 5,319 $ 4,539 $ 524 $ 20,182 INTANGIBLE ASSETS OTHER THAN GOODWILL The net carrying amounts of intangible assets other than goodwill with indefinite lives are as follows: December 31, 2021 December 31, 2020 Brands (1) $ 19,865 $ 19,874 Trade names 2,480 2,480 Contractual arrangements 123 123 Distribution rights (2) 85 57 Total $ 22,553 $ 22,534 (1) The decrease was driven by $9 million of FX translation during the year ended December 31, 2021. (2) The Company executed ten agreements to acquire distribution rights during the year ended December 31, 2021, which resulted in an increase of $28 million. The net carrying amounts of intangible assets other than goodwill with definite lives are as follows: December 31, 2021 December 31, 2020 (in millions) Gross Amount Accumulated Amortization Net Amount Gross Amount Accumulated Amortization Net Amount Acquired technology $ 1,146 $ (401) $ 745 $ 1,146 $ (328) $ 818 Customer relationships 638 (169) 469 638 (135) 503 Trade names 128 (86) 42 127 (69) 58 Distribution rights 29 (11) 18 26 (6) 20 Contractual arrangements 24 (8) 16 24 (5) 19 Brands 21 (8) 13 21 (5) 16 Total $ 1,986 $ (683) $ 1,303 $ 1,982 $ (548) $ 1,434 Amortization expense for intangible assets with definite lives was as follows: Year Ended December 31, (in millions) 2021 2020 2019 Amortization expense for intangible assets with definite lives $ 134 $ 133 $ 126 Amortization expense of these intangible assets is expected to be as follows: For the Years Ending December 31, (in millions) 2022 2023 2024 2025 2026 Expected amortization expense for intangible assets with definite lives $ 134 $ 132 $ 124 $ 109 $ 105 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, 2021, KDP performed a Step 0 analysis for certain indefinite lived intangible assets, including trade names, contractual arrangements and distribution rights and did not identify any indicators of impairment. For goodwill and the primary indefinite-lived brands, 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, 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. The following table provides the range of rates used in the analysis as of October 1, 2021, 2020, and 2019: 2021 2020 2019 Rate Minimum Maximum Minimum Maximum Minimum Maximum Discount rates 6.5 % 10.0 % 6.0 % 10.0 % 7.3 % 13.0 % Long-term growth rates — % 3.8 % — % 3.5 % — % 2.5 % Royalty rates (1) N/A N/A 1.0 % 10.0 % 1.0 % 10.0 % (1) Royalty rates were not used for the impairment analysis for the year ended December 31, 2021 as KDP performed a Step 0 qualitative analysis for the trade names which historically utilized the Relief From Royalty Method. No impairment was identified for the years ended December 31, 2021 or 2019. KDP recorded impairment of $67 million for the year ended December 31, 2020 for Bai, an indefinite lived brand asset. No other impairment of goodwill or indefinite lived intangible assets was identified for the year ended December 31, 2020. The factors that led to the Bai brand impairment determination for the year ended December 31, 2020 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, 2021, 2020, and 2019 are as follows: 2021 2020 2019 Headroom Percentage Carrying Value Fair Value Carrying Value Fair Value Carrying Value Fair Value Brands Impairment (1) $ — $ — $ 482 $ 415 $ — $ — 0 - 25% 3,311 3,663 5,052 5,775 6,356 7,251 26 - 50% 5,335 7,456 2,261 2,993 12,319 17,303 In excess of 50% 11,173 21,982 11,946 19,835 1,188 1,988 $ 19,819 $ 33,101 $ 19,741 $ 29,018 $ 19,863 $ 26,542 Trade Names (2) Impairment N/A N/A $ — $ — $ — $ — 0 - 25% N/A N/A 1 1 — — 26 - 50% N/A N/A — — — — In excess of 50% N/A N/A 2,479 6,990 2,479 6,650 $ — $ — $ 2,480 $ 6,991 $ 2,479 $ 6,650 (1) 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. (2) The Company performed a Step 0 qualitative impairment analysis on the trade names for the year ended December 31, 2021 |
Restructuring and Integration C
Restructuring and Integration Costs | 12 Months Ended |
Dec. 31, 2021 | |
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, 2021, 2020 and 2019 were as follows: Year Ended December 31, (in millions) 2021 2020 2019 DPS Integration program $ 202 $ 200 $ 232 Other restructuring charges — — 1 Total restructuring and integration charges $ 202 $ 200 $ 233 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 for the DPS Integration Program, all of which were workforce reduction costs, as of December 31, 2021 and 2020 , along with charges to expense, cash payments, and non-cash charges during the years ended December 31, 2021 and 2020, were as follows: (in millions) Workforce Reduction Costs Balance as of December 31, 2019 $ 15 Charges to expense 31 Cash payments (29) Non-cash adjustment items (3) Balance as of December 31, 2020 14 Charges to expense 41 Cash payments (36) Non-cash adjustment items — Balance as of December 31, 2021 $ 19 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. Although the program was initially expected to be completed in 2021, as a result of delays due to COVID-19, KDP will continue to recognize expenditures for certain initiatives which began during the integration period and will be completed in 2022. The restructuring and integration program resulted in cumulative pre-tax charges of approximately $790 million, primarily consisting of professional fees related to the integration and transformation and costs associated with severance and employee terminations, through December 31, 2021. |
Derivatives
Derivatives | 12 Months Ended |
Dec. 31, 2021 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Derivatives | Derivatives INTEREST RATES Economic Hedges KDP is exposed to interest rate risk related to its borrowing arrangements and obligations. The Company enters into interest rate swaps to provide predictability in the Company 's overall cost structure and to manage the balance of fixed-rate and variable-rate debt. KDP primarily enters into receive-fixed, pay-variable and receive-variable, pay-fixed swaps and swaption contracts. 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, 2021, economic interest rate derivative instruments have maturities ranging from January 2027 to May 2028. Cash Flow Hedges In order to hedge the variability in cash flows from interest rate changes associated with the Company’s planned future issuances of long-term debt, during the first quarter of 2021, the Company entered into forward starting swaps and designated them as cash flow hedges. The forward starting swaps are planned to be unwound at the issuance of long-term debt. As of December 31, 2021, the forward starting swaps have mandatory termination dates ranging from June 2022 to May 2025. FOREIGN EXCHANGE KDP is exposed to foreign exchange risk in its international subsidiaries, which may transact in currencies that are different from the functional currencies of those subsidiaries. The balance sheets of each of these businesses are also subject to exposure from movements in exchange rates. Economic Hedges During the years ended December 31, 2021, 2020 and 2019, KDP held FX forward contracts to economically manage the balance sheet exposures resulting from changes in the FX exchange rates described above. The intent of these FX contracts is to minimize the impact of FX risk associated with balance sheet positions not in local currency. In these cases, a hedging relationship exists in which changes in the fair value of the instruments act as an economic offset to changes in the fair value of the underlying items. Changes in the fair value of these instruments are recorded in earnings throughout the term of the derivative instrument and are reported in the same caption of the Consolidated Statements of Income as the associated risk. As of December 31, 2021, these FX contracts have maturities ranging from January 2022 to September 2024. Cash Flow Hedges During 2020, KDP began to designate certain FX forward contracts related to inventory purchases of the Canadian and Mexican businesses as cash flow hedges in order to manage the exposures resulting from changes in the FX rates described above. The intent of these FX contracts is to provide predictability in the Company's overall cost structure. As of December 31, 2021, these FX contracts have maturities ranging from January 2022 to May 2023. COMMODITIES Economic Hedges KDP centrally manages the exposure to volatility in the prices of certain commodities used in its production process and transportation through various derivative contracts. During the years ended December 31, 2021, 2020 and 2019, 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, 2021, these commodity contracts have maturities ranging from January 2022 to November 2023. 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) 2021 2020 Interest rate contracts Forward starting swaps, designated as cash flow hedges $ 2,500 $ — Receive-variable, pay-fixed interest rate swaps, not designated as hedging instruments — 450 Receive-fixed, pay-variable interest rate swaps, not designated as hedging instruments 400 — FX contracts Forward contracts, not designated as hedging instruments 463 476 Forward contracts, designated as cash flow hedges 385 333 Commodity contracts, not designated as hedging instruments 529 450 FAIR VALUE OF DERIVATIVE INSTRUMENTS The fair values of commodity contracts, interest rate contracts and FX forward contracts are determined based on inputs that are readily available in public markets or can be derived from information available in publicly quoted markets. The fair value of commodity contracts are valued using the market approach based on observable market transactions, primarily underlying commodities futures or physical index prices, at the reporting date. Interest rate contracts are valued using models based primarily on readily observable market parameters, such as LIBOR forward rates, for all substantial terms of the Company's contracts and credit risk of the counterparties. 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 2021 2020 Assets: Interest rate contracts 2 Prepaid expenses and other current assets $ 2 $ — FX forward contracts 2 Prepaid expenses and other current assets 3 — Commodity contracts 2 Prepaid expenses and other current assets 133 45 Commodity contracts 2 Other non-current assets 2 12 Liabilities: Interest rate contracts 2 Other current liabilities $ — $ 2 FX forward contracts 2 Other current liabilities 2 6 Commodity contracts 2 Other current liabilities 28 5 Interest rate contracts 2 Other non-current liabilities 5 7 FX forward contracts 2 Other non-current liabilities 9 9 Commodity contracts 2 Other non-current liabilities 1 2 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) Balance Sheet Location 2021 2020 Assets: FX contracts Prepaid expenses and other current assets $ 6 $ — FX contracts Other non-current assets 1 — Liabilities: FX contracts Other current liabilities $ 1 $ 12 Interest rate contracts Other current liabilities 8 — Interest rate contracts Other non-current liabilities 128 — 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 2021 2020 2019 Commodity contracts Cost of sales $ (148) $ (35) $ (10) Commodity contracts SG&A expenses (60) 22 (15) Interest rate contracts Interest expense (25) 7 7 FX forward contracts Cost of sales 4 (6) 5 FX forward contracts Other (income) expense, net — 6 18 IMPACT OF CASH FLOW HEDGES The following table presents the amount of (gains) losses, net, reclassified from AOCI into the Consolidated Statements of Income related to derivative instruments designated as cash flow hedging instruments during the periods presented: For the Year Ended December 31, (in millions) Income Statement Location 2021 2020 2019 Interest rate contracts Interest expense $ — $ — $ — FX contracts Cost of sales 18 2 — KDP expects to reclassify approximately $1 million of pre-tax net gains from AOCI into net income during the next twelve months related to its FX contracts. KDP expects to reclassify $2 million of pre-tax net losses from AOCI into net income during the next twelve months related to its interest rate contracts. |
Leases (Notes)
Leases (Notes) | 12 Months Ended |
Dec. 31, 2021 | |
Leases [Abstract] | |
Lessee, Finance Leases | Leases The following table presents the components of lease cost: For the Year Ended December 31, (in millions) 2021 2020 2019 Operating lease cost $ 121 $ 113 $ 82 Finance lease cost Amortization of right-of-use assets 63 47 48 Interest on lease liabilities 18 14 15 Variable lease cost (1) 31 27 28 Short-term lease cost — 1 5 Sublease income (1) (2) (3) Total lease cost $ 232 $ 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 and other information about the Company's leases: For the Year Ended December 31, (in millions) 2021 2020 2019 Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows from operating leases $ 113 $ 103 $ 77 Operating cash flows from finance leases 18 14 15 Financing cash flows from finance leases 54 52 38 Right-of-use assets obtained in exchange for lease obligations: Operating leases $ 293 $ 234 $ 189 Finance leases 408 90 71 The following table presents information about the Company's weighted average discount rate and remaining lease term: December 31, 2021 2020 Weighted average discount rate Operating leases 4.3 % 4.3 % Finance leases 3.6 % 4.4 % Weighted average remaining lease term Operating leases 12 years 12 years Finance leases 10 years 11 years SCHEDULE OF FUTURE MINIMUM LEASE PAYMENTS Future minimum lease payments under non-cancellable leases as of December 31, 2021 were as follows: (in millions) Operating Leases Finance Leases 2022 $ 95 $ 106 2023 91 106 2024 86 100 2025 78 95 2026 67 125 Thereafter 448 296 Total future minimum lease payments 865 828 Less: imputed interest (181) (128) Present value of minimum lease payments $ 684 $ 700 SIGNIFICANT LEASES THAT HAVE NOT YET COMMENCED As of December 31, 2021, the Company has entered into leases that have not yet commenced with estimated aggregated future lease payments of approximately $202 million. These leases will commence in 2022 and 2023, with initial lease terms ranging from 2 years to 10 years. ASSET SALE-LEASEBACK TRANSACTIONS Transactions with Special Purpose Entities with Same Sponsor The Company has entered into a number of asset sale-leaseback transactions with the same sponsor. The following table presents details of the transactions. Gains on the sale transactions are recorded in Other operating (income) expense, net, and the leasebacks are accounted for as operating leases. Sale Proceeds Carrying Value Gain on Sale 2021 December 29, 2021 (1) $ 102 $ 32 $ 70 2020 January 6, 2020 (2) $ 150 $ 131 $ 19 2019 December 23, 2019 (3) $ 170 $ 140 $ 30 (1) The sale-leaseback transaction included two manufacturing properties and two distribution properties. (2) The sale-leaseback transaction included two manufacturing properties. (3) The sale-leaseback transaction included three manufacturing properties. The initial term of each leaseback is 15 years, with 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. Each leaseback has a RVG. Refer to Note 19 for additional information about RVGs associated with asset sale-leaseback transactions. Others The Company has additionally entered into asset sale-leaseback transactions with other entities. The following table presents details of the transactions. Gains on the sale transactions are recorded in Other operating (income) expense, net, and the leasebacks are accounted for as operating leases. Sale Proceeds Carrying Value Gain on Sale 2020 January 10, 2020 (1) $ 50 $ 27 $ 23 2019 December 20, 2019 (2) 49 49 — December 13, 2019 (3) 8 8 — (1) The sale-leaseback transaction included two distribution properties. The initial term of the leaseback is five years and has two three-year renewal options. (2) The sale-leaseback transaction included KDP’s former headquarters in Plano, Texas. During the year ended December 31, 2019, KDP transferred the assets to assets held for sale and recognized an impairment of approximately $5 million. The leaseback ended in 2021 upon the Company’s relocation to a new facility. (3) The sale-leaseback transaction included certain properties in Waterbury, Vermont. During the year ended December 31, 2019, KDP transferred the assets to assets held for sale and recognized an impairment of approximately $12 million. 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: For the Year Ended December 31, (in millions) 2021 2020 2019 Operating lease cost $ 121 $ 113 $ 82 Finance lease cost Amortization of right-of-use assets 63 47 48 Interest on lease liabilities 18 14 15 Variable lease cost (1) 31 27 28 Short-term lease cost — 1 5 Sublease income (1) (2) (3) Total lease cost $ 232 $ 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 and other information about the Company's leases: For the Year Ended December 31, (in millions) 2021 2020 2019 Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows from operating leases $ 113 $ 103 $ 77 Operating cash flows from finance leases 18 14 15 Financing cash flows from finance leases 54 52 38 Right-of-use assets obtained in exchange for lease obligations: Operating leases $ 293 $ 234 $ 189 Finance leases 408 90 71 The following table presents information about the Company's weighted average discount rate and remaining lease term: December 31, 2021 2020 Weighted average discount rate Operating leases 4.3 % 4.3 % Finance leases 3.6 % 4.4 % Weighted average remaining lease term Operating leases 12 years 12 years Finance leases 10 years 11 years SCHEDULE OF FUTURE MINIMUM LEASE PAYMENTS Future minimum lease payments under non-cancellable leases as of December 31, 2021 were as follows: (in millions) Operating Leases Finance Leases 2022 $ 95 $ 106 2023 91 106 2024 86 100 2025 78 95 2026 67 125 Thereafter 448 296 Total future minimum lease payments 865 828 Less: imputed interest (181) (128) Present value of minimum lease payments $ 684 $ 700 SIGNIFICANT LEASES THAT HAVE NOT YET COMMENCED As of December 31, 2021, the Company has entered into leases that have not yet commenced with estimated aggregated future lease payments of approximately $202 million. These leases will commence in 2022 and 2023, with initial lease terms ranging from 2 years to 10 years. ASSET SALE-LEASEBACK TRANSACTIONS Transactions with Special Purpose Entities with Same Sponsor The Company has entered into a number of asset sale-leaseback transactions with the same sponsor. The following table presents details of the transactions. Gains on the sale transactions are recorded in Other operating (income) expense, net, and the leasebacks are accounted for as operating leases. Sale Proceeds Carrying Value Gain on Sale 2021 December 29, 2021 (1) $ 102 $ 32 $ 70 2020 January 6, 2020 (2) $ 150 $ 131 $ 19 2019 December 23, 2019 (3) $ 170 $ 140 $ 30 (1) The sale-leaseback transaction included two manufacturing properties and two distribution properties. (2) The sale-leaseback transaction included two manufacturing properties. (3) The sale-leaseback transaction included three manufacturing properties. The initial term of each leaseback is 15 years, with 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. Each leaseback has a RVG. Refer to Note 19 for additional information about RVGs associated with asset sale-leaseback transactions. Others The Company has additionally entered into asset sale-leaseback transactions with other entities. The following table presents details of the transactions. Gains on the sale transactions are recorded in Other operating (income) expense, net, and the leasebacks are accounted for as operating leases. Sale Proceeds Carrying Value Gain on Sale 2020 January 10, 2020 (1) $ 50 $ 27 $ 23 2019 December 20, 2019 (2) 49 49 — December 13, 2019 (3) 8 8 — (1) The sale-leaseback transaction included two distribution properties. The initial term of the leaseback is five years and has two three-year renewal options. (2) The sale-leaseback transaction included KDP’s former headquarters in Plano, Texas. During the year ended December 31, 2019, KDP transferred the assets to assets held for sale and recognized an impairment of approximately $5 million. The leaseback ended in 2021 upon the Company’s relocation to a new facility. (3) The sale-leaseback transaction included certain properties in Waterbury, Vermont. During the year ended December 31, 2019, KDP transferred the assets to assets held for sale and recognized an impairment of approximately $12 million. 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, 2021 | |
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) 2021 2020 Projected Benefit Obligations Beginning balance $ 228 $ 226 Service cost 4 3 Interest cost 6 7 Actuarial losses, net (9) 22 Benefits paid (5) (4) Impact of changes in FX rates — (1) Settlements (9) (25) Ending balance $ 215 $ 228 Fair Value of Plan Assets Beginning balance $ 203 $ 204 Actual return on plan assets 1 28 Employer contributions — 1 Benefits paid (5) (4) Impact of changes in FX rates — (1) Settlements (9) (25) Ending balance $ 190 $ 203 Net liability recognized $ (25) $ (25) Non-current assets $ 14 $ 11 Current liability (1) (1) Non-current liability (38) (35) The accumulated benefit obligations for the defined benefit pension plans were $195 million and $208 million as of December 31, 2021 and 2020. 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, 2021. 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) 2021 2020 Aggregate projected benefit obligation $ 104 $ 87 Aggregate accumulated benefit obligation 101 84 Aggregate fair value of plan assets 65 61 The following table summarizes the components of the Company's net periodic benefit cost: For the Year Ended December 31, (in millions) 2021 2020 2019 Service cost $ 4 $ 3 $ 2 Interest cost 6 7 9 Expected return on assets (8) (8) (9) Settlements (1) (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 2022. The Company included $2 million of net actuarial losses in AOCI as of both December 31, 2021 and 2020. Contributions and Expected Benefit Payments The Company's contributions to its pension plans for the years ended December 31, 2021, 2020 and 2019, and its projected contributions for the year ended December 31, 2022, are insignificant. The following table summarizes the estimated future benefit payments for the Company's defined benefit plans: 2022 2023 2024 2025 2026 2027-2031 Estimated future benefit payments $ 12 $ 12 $ 12 $ 12 $ 12 $ 61 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, 2021 and 2020, as well as projected 2022 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, 2021. 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 each of the years ended December 31, 2021 and 2020. 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, 2021 2020 Weighted average discount rate 2.85 % 2.55 % 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, 2021 2020 2019 Weighted average discount rate 2.55 % 3.30 % 3.30 % Rate of increase in compensation levels 3.00 % 3.00 % 3.00 % Expected long-term rate of return 4.00 % 4.00 % 4.00 % For the years ended December 31, 2021, 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, 2021 2020 2019 Fixed income securities: Asset allocation assumption 80 % 80 % 80 % Expected long-term rate of return 3.4 % 3.4 % 3.1 % Equity securities: Asset allocation assumption 20 % 20 % 20 % Expected long-term rate of return 6.5 % 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, 2021 and 2020, 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 The Company has 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, 2021 and 2020. 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, 2021 2020 (in millions) Fair Value Hierarchy Level Pension Assets PRMB Assets Pension Assets PRMB Assets Cash and cash equivalents Level 1 $ 4 $ — $ 8 $ 1 U.S. equity securities (1)(2) Level 2 21 1 22 1 International equity securities (1)(2) Level 2 11 8 12 7 Fixed income securities (3) Level 2 154 1 161 1 Total $ 190 $ 10 $ 203 $ 10 (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 domestic and international corporate bonds and U.S. 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 The Company has three multi-employer plans, which are 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 $5 million, $7 million and $4 million for the years ended December 31, 2021, 2020 and 2019, 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, 2021: Plan's employer identification number 36-6044243 Plan number 001 Expiration dates of collective bargaining agreements (1) March 20, 2022 through February 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 55% of the employees included in Central States. Two of the collective bargaining agreements are set to expire during 2022, covering approximately 14% of the employees included in Central States. The most recent Pension Protection Act zone status available as of December 31, 2021 is for the plan's year-end as of December 31, 2020. 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, 2021, 2020 and 2019. Future estimated contributions to Central States based on the number of covered employees and the terms of the collective bargaining agreements are as follows: 2022 2023 2024 2025 2026 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 2021 2020 Marketable securities - trading Level 1 $ 43 $ 41 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 (income) expense, net with an offset for the same amount recorded in SG&A expenses. There were $5 million in gains associated with these trading securities during the year ended December 31, 2021, and $8 million in gains during each of the years ended December 31, 2020 and 2019. The Company makes matching contributions and discretionary profit sharing contributions to each of the respective plans. The Company incurred contribution expense of $73 million, $77 million and $66 million to the defined contribution plans for the years ended December 31, 2021, 2020 and 2019, respectively. |
Segments
Segments | 12 Months Ended |
Dec. 31, 2021 | |
Segment Reporting [Abstract] | |
Segments | Segments Effective January 1, 2021, the Company modified its internal reporting and operating segments to reflect changes in the executive leadership team to further enhance speed-to-market and decision effectiveness. These changes did not change the Company’s reportable segments. As of December 31, 2021 and 2020 and for the years ended December 31, 2021, 2020 and 2019, the Company's reportable segments consist of the following: • The Coffee Systems segment reflects sales in the U.S. and Canada of the manufacture and distribution of finished goods relating to the Company's coffee system, K-Cup pods and brewers. • The Packaged Beverages segment reflects sales in the U.S. and Canada from the manufacture and distribution of finished beverages and other products, including sales of the Company's own brands and third-party brands, through both the DSD and WD systems. DSD and WD have both been identified as operating segments that the Company aggregated into Packaged Beverages due to similar economic characteristics and similarities in the nature of finished goods sales and route-to-markets. • The Beverage Concentrates segment reflects sales of the Company's branded concentrates and syrup to third-party bottlers primarily in the U.S. and Canada. Most of the brands in this segment are CSD brands. Our FFS operating segment is aggregated with our Branded Concentrates operating segment into our Beverage Concentrates reportable segment due to similar economic characteristics and similarities in the nature of the product sold. • The Latin America Beverages segment reflects sales 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) 2021 2020 2019 Net sales Coffee Systems $ 4,716 $ 4,433 $ 4,233 Packaged Beverages 5,882 5,363 4,945 Beverage Concentrates 1,486 1,325 1,414 Latin America Beverages 599 497 528 Total net sales $ 12,683 $ 11,618 $ 11,120 Income from operations Coffee Systems $ 1,318 $ 1,268 $ 1,219 Packaged Beverages 1,010 822 757 Beverage Concentrates 1,044 932 955 Latin America Beverages 133 105 85 Unallocated corporate costs (611) (647) (638) Income from operations $ 2,894 $ 2,480 $ 2,378 December 31, (in millions) 2021 2020 Identifiable operating assets Coffee Systems $ 15,397 $ 15,295 Packaged Beverages 11,819 11,540 Beverage Concentrates 20,674 20,575 Latin America Beverages 1,763 1,763 Segment total 49,653 49,173 Unallocated corporate assets 915 518 Total identifiable operating assets 50,568 49,691 Investments in unconsolidated affiliates 30 88 Total assets $ 50,598 $ 49,779 GEOGRAPHIC DATA The following table presents information about the Company's operations by geographic region: For the Year Ended December 31, (in millions) 2021 2020 2019 Net sales U.S. $ 11,267 $ 10,318 $ 9,843 International 1,416 1,300 1,277 Net sales $ 12,683 $ 11,618 $ 11,120 December 31, (in millions) 2021 2020 Property, plant and equipment, net U.S. $ 2,084 $ 1,893 International 410 319 Total property, plant and equipment, net $ 2,494 $ 2,212 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) 2021 2020 2019 Net sales Walmart $ 1,989 $ 1,782 $ 1,483 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. |
Earnings Per Share
Earnings Per Share | 12 Months Ended |
Dec. 31, 2021 | |
Earnings Per Share [Abstract] | |
Earnings Per Share | Earnings Per Share The following table presents the Company's basic and diluted EPS and shares outstanding. Anti-dilutive stock-based awards excluded from the calculations of diluted EPS were immaterial during the periods presented. For the Year Ended December 31, (in millions, except per share data) 2021 2020 2019 Net income attributable to KDP $ 2,146 $ 1,325 $ 1,254 Weighted average common shares outstanding 1,415.7 1,407.2 1,406.7 Dilutive effect of stock-based awards 12.2 14.9 12.4 Weighted average common shares outstanding and common stock equivalents 1,427.9 1,422.1 1,419.1 Basic EPS $ 1.52 $ 0.94 $ 0.89 Diluted EPS $ 1.50 $ 0.93 $ 0.88 |
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) 2021 2020 2019 Total stock-based compensation expense $ 88 $ 85 $ 64 Income tax benefit recognized in the Statements of Income (14) (13) (11) Stock-based compensation expense, net of tax $ 74 $ 72 $ 53 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 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 and 2021 5-year term with graded vesting as follows: 0% in year 1, 0% in year 2, 60% in year 3, 20% in year 4, 20% in year 5 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, 2021 : RSUs Weighted Average Grant Date Fair Value Weighted Average Remaining Contractual Term (Years) Aggregate Intrinsic Value (in millions) Balance as of December 31, 2020 26,688,304 $ 19.66 2.0 $ 854 Granted 4,673,122 28.83 — — Vested and released (9,892,897) 10.89 — 333 Forfeited (2,660,038) 25.38 — — Balance as of December 31, 2021 18,808,491 25.74 2.2 693 The weighted average grant date fair value for RSUs granted for the years ended December 31, 2021, 2020 and 2019 was $28.83, $24.91 and $26.55, respectively. The aggregate intrinsic value of the RSUs vested and released for the years ended December 31, 2021, 2020 and 2019 was $333 million, $3 million and $1 million, respectively. As of December 31, 2021, there was $287 million of unrecognized compensation cost related to unvested RSUs that is expected to be recognized over a weighted average period of 3.3 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, 2021 : PSUs Weighted Average Grant Date Fair Value Weighted Average Remaining Contractual Term (Years) Aggregate Intrinsic Value (in millions) Balance as of December 31, 2020 651,042 $ 28.80 2.0 $ 21 Granted — — — — Vested and released — — — — Forfeited — — — — Balance as of December 31, 2021 651,042 28.80 1.1 24 As of December 31, 2021, there was $13 million of unrecognized compensation cost related to unvested PSUs that is expected to be recognized over a weighted average period of 2.0 years. STOCK OPTIONS The table below summarizes stock option activity for the year ended December 31, 2021 : Stock Options Weighted Average Exercise Price Weighted Average Remaining Contractual Term (Years) Aggregate Intrinsic Value (in millions) Balance as of December 31, 2020 195,572 $ 12.11 4.7 $ 4 Granted — — — — Exercised (2,000) 14.76 — — Outstanding as of December 31, 2021 193,572 12.09 3.7 5 Exercisable as of December 31, 2021 193,572 12.09 3.7 5 |
Revenue Recognition
Revenue Recognition | 12 Months Ended |
Dec. 31, 2021 | |
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, 2021 CSD (1) $ — $ 2,825 $ 1,463 $ 435 $ 4,723 NCB (1) — 2,617 11 163 2,791 K-cup pods (2) 3,546 — — — 3,546 Appliances 907 — — — 907 Other 263 440 12 1 716 Net sales $ 4,716 $ 5,882 $ 1,486 $ 599 $ 12,683 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 (1) Represents net sales of owned and partner brands within the Company's portfolio. (2) Represents net sales from owned brands, |
Income Taxes
Income Taxes | 12 Months Ended |
Dec. 31, 2021 | |
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) 2021 2020 2019 U.S. $ 2,353 $ 1,367 $ 1,389 International 445 386 305 Total $ 2,798 $ 1,753 $ 1,694 The provision for income taxes has the following components: For the Year Ended December 31, (in millions) 2021 2020 2019 Current: Federal $ 386 $ 297 $ 303 State 136 103 98 International 100 79 62 Total current provision $ 622 $ 479 $ 463 Deferred: Federal $ 41 $ (31) $ (31) State (8) (6) 1 International (2) (14) 7 Total deferred provision $ 31 $ (51) $ (23) Total provision for income taxes $ 653 $ 428 $ 440 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) 2021 2020 2019 Statutory federal income tax rate 21.0 % 21.0 % 21.0 % State income taxes, net 3.8 % 4.0 % 3.7 % Impact of non-U.S. Operations 0.1 % 0.2 % 0.3 % Tax credits (0.8) % (1.3) % (0.9) % Valuation allowance for deferred tax assets (0.1) % (1.1) % — % U.S. taxation of foreign earnings 0.7 % 1.6 % 1.5 % Deferred rate change (0.7) % 0.5 % (0.3) % Uncertain tax positions — % (1.3) % — % U.S. federal provision to return (0.3) % 0.1 % (0.6) % Excess tax deductions on stock-based compensation (1.0) % — % — % Other 0.6 % 0.7 % 1.3 % Total provision for income taxes 23.3 % 24.4 % 26.0 % Deferred tax assets and liabilities were comprised of the following: December 31, (in millions) 2021 2020 Deferred tax assets: Operating lease liability $ 166 $ 161 Net operating losses carryforwards 43 46 Tax credit carryforwards 49 54 Accrued expenses 125 153 Share-based compensation 32 36 Multi-year upfront payments 13 15 Equity method investments 50 29 Other 41 27 Total deferred tax assets 519 521 Valuation allowances (48) (51) Total deferred tax assets, net of valuation allowances $ 471 $ 470 Deferred tax liabilities: Brands, trade names and other intangible assets $ (5,909) $ (5,916) Property, plant and equipment (314) (293) Derivative instruments (18) (38) Right of use assets (164) (159) Other (10) (12) Total deferred tax liabilities (6,415) (6,418) Net deferred tax liabilities $ (5,944) $ (5,948) CARRYFORWARDS As of December 31, 2021 and 2020, the Company had $39 million and $45 million, respectively, in tax-effected Luxembourg net operating loss carry forwards. Of the $39 million of net operating loss carryforwards as of December 31, 2021, $38 million will not expire and $1 million will begin to expire in the year 2035. As of December 31, 2021, the Company has $48 million of U.S. foreign tax credit carryforwards and $1 million of other carryforwards, primarily related to U.S. state income tax. The Company recorded a valuation allowance release of approximately $51 million during the year ended December 31, 2021 against U.S. foreign tax credit carryforwards, as realization is more likely than not. Foreign tax credits will begin to expire in 2024. UNDISTRIBUTED INTERNATIONAL EARNINGS For the tax year ended December 31, 2021 and 2020, undistributed earnings in non-U.S. subsidiaries for which no deferred taxes have been provided totaled approximately $295 million and $130 million, respectively. 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 2016 and forward, and Canadian income tax returns are open for audit for tax years 2013 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 for each of the years ended December 31, 2021 and 2020, respectively, resulting in no impact to basic and diluted EPS for each of the years ended December 31, 2021 and 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) 2021 2020 2019 Balance, beginning of the period $ 18 $ 43 $ 50 Increases related to tax positions taken during the current year 2 2 2 (Decreases) increases related to tax positions taken during the prior year (3) 2 3 Decreases related to settlements with taxing authorities (1) (8) (8) Decreases related to lapse of applicable statute of limitations (4) (21) (4) Balance, end of the period $ 12 $ 18 $ 43 The total amount of unrecognized tax benefits that, if recognized, would reduce the effective tax rate, is $9 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 $1 million and $8 million, and expense of $3 million, related to interest and penalties for uncertain tax positions for the years ended December 31, 2021, 2020 and 2019, respectively. The Company had a total of $2 million and $1 million accrued for interest and penalties for its uncertain tax positions reported as part of other non-current liabilities as of December 31, 2021 and 2020, respectively. |
Acquisitions and Investments in
Acquisitions and Investments in Unconsolidated Subsidiaries | 12 Months Ended |
Dec. 31, 2021 | |
Business Combinations [Abstract] | |
Acquisitions and Investments in Unconsolidated Subsidiaries | 2021 ACQUISITIONS The Company did not make any acquisitions during the year ended December 31, 2021. 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. INVESTMENTS IN UNCONSOLIDATED AFFILIATES The following table summarizes the Company's investments in unconsolidated affiliates: December 31, (in millions) Ownership Interest (1) 2021 2020 BodyArmor — % $ — $ 51 Bedford 30.0 % — — Dyla LLC 12.4 % 12 12 Force Holdings LLC (2) 33.3 % 5 5 Beverage startup companies (3) (various) 8 15 Other (various) 5 5 Investments in unconsolidated affiliates $ 30 $ 88 (1) Represents the Company’s ownership interest as of December 31, 2021 on an undiluted basis, which does not reflect the potential dilution resulting from equity arrangements of the entity, including vesting of such arrangements upon a change in control. (2) Force Holdings LLC has a 14.1% ownership interest in Dyla LLC. (3) Beverage startup companies represent equity method investments in development stage entities and may include entities which are pre-revenue, in test markets, or in early operations. Sale of Investment On November 1, 2021, Coca-Cola announced that it had acquired full ownership of BodyArmor for cash consideration of $5.6 billion for the remaining 85% of equity interests that Coca-Cola did not previously own. Prior to the transaction, KDP held an ownership interest in BodyArmor of 12.5% on an undiluted basis, which had a carrying value of approximately $52 million. As a result of BodyArmor’s change in control, KDP’s ownership interest was diluted to 10.6% as a result of the vesting of incentive equity compensation previously granted by BodyArmor to employees, athletes, and endorsers. KDP received cash consideration from the sale of its interests in BodyArmor, net of holdback liabilities, of $576 million on December 15, 2021, resulting in a gain on the sale of the investment of $524 million. This gain was recorded to Gain on sale of investment in the Consolidated Statements of Income. The Company’s holdback liabilities represent a contingent gain due to a number of uncertainties, which includes unresolved items and any potential indemnification claims. The end of the holdback period is 18 months after Coca-Cola’s full acquisition of BodyArmor. The holdback liability, as of November 1, 2021, was $$105 million. Refer to Note 21 for information about the resolution of the holdback liabilities subsequent to December 31, 2021. Impairments of Investments Bedford Investment and Related Party Note Receivable - 2020 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 originally had a maturity of 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 and the investment in unconsolidated affiliates of $31 million were fully impaired, 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 placed the note receivable in non-accrual status. Bedford Investment and Related Party Notes Receivable - 2021 In July 2021, the board of directors of Bedford communicated to KDP that Bedford was seeking additional investors in order to continue its operations. On July 15, 2021, KDP issued a convertible promissory note for $15 million to Bedford at an interest rate of 0.12% per year. The outstanding principal and any unpaid accrued interest automatically converted to equity interests in Bedford during the fourth quarter of 2021. On November 29, 2021, KDP issued a promissory note for $2 million to Bedford at an interest rate of 0.33% per year. The outstanding principal and any unpaid accrued interest are due November 29, 2022. In December 2021, the board of directors of Bedford communicated to KDP that it was unable to obtain additional investors, and that Bedford will begin procedures to wind down the company. As a result of this decision, KDP fully impaired the outstanding note receivable of $2 million and investment in unconsolidated affiliates of $15 million, and the note receivable was placed in non-accrual status. As part of the wind down procedures, KDP and ABI agreed to together fund a $68 million credit agreement to Bedford. KDP will fund 30% of this loan, in line with the Company’s ownership percentage in Bedford. The $2 million promissory note funded on November 29, 2021 is considered as part of this credit agreement. Impairment of LifeFuels 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. |
Accumulated Other Comprehensive
Accumulated Other Comprehensive Income | 12 Months Ended |
Dec. 31, 2021 | |
Equity [Abstract] | |
Accumulated Other Comprehensive Income | Accumulated Other Comprehensive Income (Loss) The following table provides a summary of changes in AOCI, net of taxes: (in millions) Foreign Currency Translation Pension and PRMB Liabilities Cash Flow Hedges AOCI 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 loss (9) (4) (14) (27) Balance as of December 31, 2020 95 (4) (14) 77 OCI before reclassifications (14) — (102) (116) Amounts reclassified from AOCI — — 13 13 Net current period other comprehensive loss (14) — (89) (103) Balance as of December 31, 2021 $ 81 (4) $ (103) $ (26) The following table presents the amount of losses reclassified from AOCI into the Consolidated Statements of Income: For the Year Ended December 31, (in millions) Income Statement Caption 2021 2020 2019 Pension and PRMB liabilities SG&A expenses $ — $ 1 $ (1) Income tax benefit — — — Total, net of tax $ — $ 1 $ (1) Cash flow hedges: Interest rate contracts Interest expense $ — $ — $ — $ — FX contracts Cost of sales 18 2 — Total 18 2 — Income tax benefit (5) — — Total, net of tax $ 13 $ 2 $ — |
Property, Plant and Equipment (
Property, Plant and Equipment (Notes) | 12 Months Ended |
Dec. 31, 2021 | |
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) 2021 2020 Land $ 50 $ 54 Buildings and improvements 793 520 Machinery and equipment 2,369 1,870 Cold drink equipment 89 80 Software 404 315 Construction-in-progress 138 393 Property, plant and equipment, gross 3,843 3,232 Less: accumulated depreciation and amortization (1,349) (1,020) Property, plant and equipment, net $ 2,494 $ 2,212 The following table summarizes the location of depreciation expense within the Consolidated Statements of Income: For the Year Ended December 31, (in millions) 2021 2020 2019 Cost of sales $ 233 $ 215 $ 199 SG&A expenses 177 147 159 Total depreciation expense $ 410 $ 362 $ 358 |
Other Financial Information
Other Financial Information | 12 Months Ended |
Dec. 31, 2021 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Other Financial Information | Other Financial Information CASH AND CASH EQUIVALENTS The carrying value of cash, cash equivalents, restricted cash and restricted cash equivalents is valued as of the balance sheet date equating fair value and 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) 2021 2020 Cash and cash equivalents $ 567 $ 240 Restricted cash and restricted cash equivalents 1 15 Total cash, cash equivalents, restricted cash and restricted cash equivalents $ 568 $ 255 ACCOUNTS PAYABLE KDP has agreements with third party administrators which allow 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, 2021 and 2020, $3,194 million and $2,578 million, respectively, of KDP's outstanding payment obligations were voluntarily elected by the supplier and sold to financial institutions. SELECTED BALANCE SHEET INFORMATION The following tables provide selected financial information from the Consolidated Balance Sheets: December 31, (in millions) 2021 2020 Inventories: Raw materials $ 330 $ 260 Work in process 6 6 Finished goods 577 520 Total 913 786 Allowance for excess and obsolete inventories (19) (24) Inventories $ 894 $ 762 Prepaid expenses and other current assets: Other receivables $ 112 $ 85 Customer incentive programs 21 34 Derivative instruments 144 45 Prepaid marketing 12 15 Spare parts 72 55 Assets held for sale — 2 Income tax receivable 14 11 Other 72 76 Total prepaid expenses and other current assets $ 447 $ 323 Other non-current assets: Customer incentive programs $ 59 $ 70 Equity securities (1) 58 41 Operating lease right-of-use assets 673 645 Derivative instruments 3 12 Equity securities without readily determinable fair values 1 1 Other 143 125 Total other non-current assets $ 937 $ 894 (1) Equity securities are comprised of assets held in a rabbi trust in connection with a non-qualified defined contribution plan, as well as our ownership interest in Vita Coco. Refer to Note 8 for additional information about the rabbi trust. On October 25, 2021, the Company acquired an ownership interest in Vita Coco for $20 million. Unrealized mark-to-market losses on the investment of $5 million for the year ended December 31, 2021 are recorded in Other (income) expense, net. December 31, (in millions) 2021 2020 Accrued expenses: Customer rebates & incentives $ 446 $ 382 Accrued compensation 227 215 Insurance reserve 33 35 Interest accrual 55 57 Accrued professional fees 19 21 Other accrued expenses 330 330 Total accrued expenses $ 1,110 $ 1,040 Other current liabilities: Dividends payable $ 265 $ 212 Income taxes payable 144 39 Operating lease liability 76 72 Finance lease liability 79 44 Derivative instruments 39 25 Holdback liability — 15 Other 10 9 Total other current liabilities $ 613 $ 416 Other non-current liabilities: Long-term pension and postretirement liability $ 40 $ 38 Insurance reserves 75 72 Operating lease liability 608 580 Finance lease liability 621 298 Derivative instruments 143 18 Deferred compensation liability 43 41 Other 47 72 Total other non-current liabilities $ 1,577 $ 1,119 |
Commitments and Contingencies
Commitments and Contingencies | 12 Months Ended |
Dec. 31, 2021 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Commitments and Contingencies KDP is occasionally subject to litigation or other legal proceedings. Reserves are recorded for specific legal proceedings when the Company determines that the likelihood of an unfavorable outcome is probable and the amount of loss can be reasonably estimated. As of December 31, 2021 and 2020, the Company had litigation reserves of $14 million and $32 million, respectively, which includes the specific amounts disclosed below. KDP has also identified certain other legal matters where we believe an unfavorable outcome is reasonably possible and/or for which no estimate of possible losses can be made. The Company does not believe that the outcome of these, or any other, pending legal matters, individually or collectively, will have a material adverse effect on the results of operations, financial condition or liquidity of KDP. ANTITRUST LITIGATION In February 2014, TreeHouse Foods, Inc. and certain affiliated entities filed suit against KDP’s wholly-owned subsidiary, Keurig, 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 treble monetary damages, declaratory relief, injunctive relief and attorneys’ fees. In March 2014, JBR, Inc. filed suit against Keurig 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 complaint were substantially similar to the claims asserted and relief sought in the TreeHouse complaint. Beginning in 2014, a number of putative class actions asserting similar claims and seeking similar relief to the matters described above were filed on behalf of purported direct purchasers of Keurig’s products in various federal district courts. In June 2014, these various actions, including the TreeHouse and JBR suits, were transferred to a single judicial district for coordinated pre-trial proceedings (the “Multidistrict Antitrust Litigation”). A consolidated putative class action complaint by direct purchaser plaintiffs was filed in July 2014. In January 2019, McLane Company, Inc. filed suit against Keurig (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 concluded in 2021, with plaintiffs collectively claiming more than $5 billion of monetary damages. Keurig strongly disputes the merits of the claims and the calculation of damages. As a result, Keurig has fully briefed a summary judgment motion that, if successful, would end the cases entirely. Keurig has also fully briefed other significant motions, including challenges to the validity of plaintiffs’ damages calculations. Keurig is also pursuing its opposition to direct purchaser plaintiffs’ motion for class certification. In July 2021, BJ’s Wholesale Club, Inc. filed suit against Keurig (BJ’s Wholesale Club, Inc. v. Keurig Green Mountain, Inc.) in the U.S. District Court for the Eastern District of New York (“EDNY”) asserting similar claims and also was transferred into the Multidistrict Antitrust Litigation. In August 2021, Winn-Dixie Stores, Inc. and Bi-Lo Holding LLC filed suit against Keurig (Winn-Dixie Stores, Inc. et al. v. Keurig Green Mountain, Inc. et al.) in the EDNY asserting similar claims and was also transferred into the Multidistrict Antitrust Litigation. These cases remain in the early stages of discovery. A number of putative class actions asserting similar claims and seeking similar relief were previously filed on behalf of purported indirect purchasers of Keurig’s products. In July 2020, Keurig reached an agreement with the putative indirect purchaser class plaintiffs in the Multidistrict Antitrust Litigation to settle the claims asserted for $31 million. The settlement class consists of individuals and entities in the United States that purchased, from persons other than Keurig and not for purposes of resale, Keurig manufactured or licensed single serve beverage portion packs during the applicable class period (beginning in September 2010 for most states). The court granted preliminary approval of the settlement in December 2020, and the Company paid the settlement amount in January 2021. In June 2021, the Court granted final approval of the settlement, entered final judgment, and dismissed the indirect purchasers’ claims. Separate from the U.S. actions described above, a statement of claim was filed in September 2014 against Keurig 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. To date, this plaintiff has not taken substantive action to prosecute its claims. KDP intends to vigorously defend the remaining lawsuits described above. 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. Accordingly, the Company has not accrued for a loss contingency. Additionally, as the timelines in these cases may be beyond our control, we cannot assure you if or when there will be material developments in these matters. 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 Keurig, and certain other defendants who manufacture, package, distribute or sell coffee, failed to warn persons in California that Keurig's coffee products expose persons to the chemical acrylamide in violation of Proposition 65. Keurig, as part of a joint defense group organized to defend against the lawsuit, disputed CERT's claims and asserted multiple affirmative defenses. The case was scheduled to proceed to a third phase for trial on damages, remedies and attorneys' fees, but such trial did not occur in light of California’s Office of Environmental Health Hazard Assessment proposal of a new Proposition 65 regulation clarifying that cancer warnings are not required for chemicals, such as acrylamide, that are present in coffee as a result of roasting coffee beans. After the regulation took effect in October 2019, the litigation continued based on, among other items, CERT’s contentions that the regulation is legally invalid and, alternatively, cannot be applied to its pending claims. In August 2020, the court granted the defendants' motion for summary judgment, effectively ending CERT's Proposition 65 litigation at the trial court level. CERT has filed its appeal brief, and the Company intends to continue vigorously defending itself in this action. However, the Company believes that the likelihood that it will incur a material loss in connection with the CERT litigation is remote and accordingly, no loss contingency has been recorded. 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. 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, 2019 $ 8 Accruals for warranties issued 15 Settlements (13) Balance as of December 31, 2020 10 Accruals for warranties issued 21 Settlements (18) Balance as of December 31, 2021 $ 13 |
Transactions with Variable Inte
Transactions with Variable Interest Entities | 12 Months Ended |
Dec. 31, 2021 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Variable Interest Entity Disclosure | Transactions with Variable Interest Entities The Company has a number of leasing arrangements and one licensing arrangement with special purpose entities associated with the same sponsor, which are referred to as the Veyron SPEs. The Veyron SPEs are VIEs for which KDP is not the primary beneficiary. Leasing Arrangements As of December 31, 2021, the Company has entered into ten lease transactions with the Veyron SPEs, nine of which were associated with asset sale-leaseback transactions. Refer to Note 7 for additional information about the asset sale-leaseback transactions. Each lease has a RVG based on a percentage of Veyron SPEs’s purchase price; however, the Company concluded it was not probable that the Company will owe an amount at the end of each individual lease term, as the fair values of the properties are not expected to fall below the RVGs at the end of each individual lease term. As such, the Company recorded each lease obligation excluding the associated RVG. The aggregate maximum undiscounted RVG associated with the leasing arrangements as of December 31, 2021 and 2020 were $549 million and $249 million, respectively. This aggregate maximum value assumes that the fair value of each property at the end of either the original lease term or renewal term is equal to zero, which the Company has concluded is not probable. The following table provides the carrying amounts of the right-to-use assets and lease obligations recorded on the Company’s Consolidated Balance Sheets associated with these leasing arrangements related to the VIEs as of December 31, 2021 and 2020. December 31, (in millions) 2021 (1) 2020 (2) Current assets $ 19 $ 8 Non-current assets 312 159 Current liabilities 13 9 Non-current liabilities 323 155 (1) The leasing agreements included as of December 31, 2021 include seven manufacturing sites, two distribution centers and our Frisco, Texas headquarters. (2) The leasing agreements included as of December 31, 2020 include five manufacturing sites. Licensing Arrangement ABC, a wholly-owned subsidiary of KDP, has provided a guarantee in connection with its distribution agreement with the Veyron SPEs to be paid only in the event the Veyron SPEs sell 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 the Veyron SPEs. As of December 31, 2021, 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 term of the agreement. As of December 31, 2021, KDP had $108 million in fixed service fee commitments related to the 15-year distribution agreement which was effective on December 28, 2020, with Veyron SPEs. These commitments were used to assist the Veyron SPEs in obtaining financing. Such fixed service fee payments began on 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) 2022 2023 2024 2025 2026 Fixed service fees $ 8 $ 8 $ 8 $ 8 $ 8 |
Related Parties
Related Parties | 12 Months Ended |
Dec. 31, 2021 | |
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, 2021, JAB beneficially owned approximately 33% of KDP's outstanding common stock. JAB and its affiliates also hold investments in a number of other companies that have commercial relationships with the Company, including Peet's, Caribou Coffee Company, Inc., Panera Bread Company, Einstein Bros Bagels, and Krispy Kreme Doughnuts Inc. • KDP purchases certain raw materials from Peet's and manufactures coffee and tea portion packs under Peet's brands for sale by KDP and Peet's in the U.S. and Canada. • KDP exclusively manufactures, distributes and sells Peet's RTD beverage products in the U.S. and Canada. • KDP licenses the Caribou Coffee, Panera Bread and Krispy Kreme trademarks for use in the manufacturing of portion packs for the Keurig brewing system. • KDP sells various 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 14 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 $17 million and $18 million as of December 31, 2021 and 2020, respectively, primarily related to product sales and royalty revenues. Accounts payable to related parties were $7 million and $13 million as of December 31, 2021 and 2020, 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) 2021 2020 2019 Receipts from related parties $ 113 $ 112 $ 93 Payments to related parties 67 73 57 NOTE RECEIVABLE FROM BEDFORD KDP holds a note receivable executed in December 2021 from Bedford, a related party. All fundings made under this note receivable in 2021 were fully impaired and placed in non-accrual status as of December 31, 2021. Refer to Note 14 for additional information. |
Subsequent Events
Subsequent Events | 12 Months Ended |
Dec. 31, 2021 | |
Subsequent Events [Abstract] | |
Subsequent Events | Subsequent Events BODYARMOR LITIGATION In January 2022, KDP agreed to a $350 million payment from BodyArmor for a full settlement of all of the claims under the existing litigation against BodyArmor and in complete satisfaction of the holdback amount owed to ABC in association with the sale of ABC’s equity interest in BodyArmor in 2021. ABC received the settlement payment in January 2022 and the lawsuit has been dismissed. In January 2022, the Company allocated approximately $300 million of the settlement for resolution of the prior litigation, which was recorded to other operating (income) expense, net. The remaining $50 million was allocated to the settlement of the holdback liability, which was recorded to Gain on the sale of our equity method investment. REDEMPTION OF THE 2038 NOTES On January 24, 2022, KDP redeemed and retired the remainder of its 2038 Notes. The loss on early extinguishment of the 2038 Notes was approximately $45 million, comprised of the make-whole premium and the write-off of the associated unamortized fair value adjustment related to the DPS Merger. TERMINATION OF EXISTING CREDIT FACILITIES AND CREATION OF NEW FIVE-YEAR CREDIT FACILITY On February 23, 2022, KDP terminated the 2021 364-Day Credit Agreement and the KDP Revolver. There were no amounts drawn upon the 2021 364-Day Credit Agreement or the KDP Revolver prior to termination. Also on February 23, 2022, KDP entered into the 2022 Revolving Credit Agreement among KDP, as borrower, the lenders from time to time party thereto and JPMorgan Chase, Bank, N.A., as administrative agent. The 2022 Revolving Credit Agreement provides for a $4 billion revolving credit facility, including a letter of credit sub-facility in an aggregate principal amount of up to $200 million. The 2022 Revolving Credit Agreement will mature in February 2027. The 2022 Revolving Credit Agreement will replace the KDP Revolver and the 2021 364-Day Credit Agreement and the proceeds of the credit facility will be used for working capital and for other general corporate purposes of KDP. Borrowings under the 2022 Revolving Credit Agreement will bear interest at a rate per annum equal to, at KDP's option, an adjusted SOFR rate plus a margin of 0.875% to 1.500% or a base rate plus a margin of zero to 0.500%, in each case, depending on the rating of certain index debt of KDP. The 2022 Revolving Credit Agreement contains customary representations and warranties for investment grade financings. The 2022 Revolving Credit Agreement also contains (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 minimum interest coverage ratio and (iv) customary events of default (including a change of control) for financings of this type. |
Background and Basis of Prese_2
Background and Basis of Presentation (Policies) | 12 Months Ended |
Dec. 31, 2021 | |
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 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. |
Basis of Accounting [Text Block] | BASIS OF PRESENTATION 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 would be required to consolidate VIEs for which KDP has been determined to be the primary beneficiary. To determine if KDP is the primary beneficiary, the Company assesses whether it has the power to direct the significant activities of the VIE and the obligation to absorb losses or receive benefits from the VIE that may be significant to the VIE. The Company has determined that it is not the primary beneficiary of any VIEs. However, future events may require the Company to consolidate VIEs if the Company becomes the primary beneficiary. 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, 2021, 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 2020 2019 Net cash used in financing activities: Proceeds from commercial paper Net (repayment) issuance of commercial paper $ 7,288 $ 16,197 Repayments of commercial paper Net (repayment) issuance of commercial paper (8,534) (16,030) |
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, 2021 | |
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 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. In November 2021, the FASB issued ASU 2021-10, Government Assistance (Topic 832): Disclosures by Business Entities about Government Assistance . The objective of ASU 2021-10 is to require business entities to disclose information about certain government assistance they receive. ASU 2021-10 is effective for all entities for annual periods beginning after December 15, 2021. The Company is currently evaluating ASU 2021-10 but expects the impact of the disclosures to be immaterial to KDP’s consolidated financial statements. RECENTLY ADOPTED PROVISIONS OF U.S. GAAP As of January 1, 2021, the Company adopted ASU 2020-01, Investments—Equity Securities (Topic 321), Investments—Equity Method and Joint Ventures (Topic 323),and Derivatives and Hedging (Topic 815): Clarifying the Interactions between Topic 321, Topic 323, and Topic 815 . The objective of 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. The adoption of the standard did not impact KDP’s consolidated financial statements. |
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, 2021 and 2020 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, 2021 and 2020, 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, 2021, 2020 and 2019. |
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, 2021. 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) 2021 2020 2019 Balance, beginning of the period $ 21 $ 9 $ 8 Charges to (reversals of) bad debt expense (13) 17 2 Write-offs and adjustments (1) (5) (1) Balance, end of the period $ 7 $ 21 $ 9 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, 2021 and 2020 as described in Note 9. As of December 31, 2021 and 2020, Walmart accounted for approximately $157 million and $184 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 year ended December 31, 2021, the Company recorded no impairment loss. For the years ended December 31, 2020 and 2019, the Company recorded an impairment loss of $1 million and $24 million, respectively. Impairment loss is recorded in Other operating (income) expense, 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 restrictive covenants. KDP has certain leases of manufacturing and distribution properties and the Frisco headquarters that contain a residual value guarantee at the end of the term. Refer to Note 19 for additional information about the Company’s residual value guarantees. 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. |
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 the Company. 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 (income) expense, 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, equity securities with readily determinable fair value, 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 (income) expense, net in the Consolidated Statements of Income. Any gains and losses resulting from the sale of these investments are recorded in Gain on sale of equity method investment. 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. Investments with readily determinable fair values for which we do not have the ability to exercise significant influence are measured at fair value and reported in Other non-current assets in the Company's Consolidated Balance Sheets. Unrealized gains and losses on these investments are recorded in Other (income) expense, net in the Consolidated Statements of Income. Investments without readily determinable fair values for which we do not have the ability to exercise significant influence are accounted for 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 4 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: Reportable Segments Reporting Units Packaged Beverages DSD WD Coffee Systems Coffee Systems Beverage Concentrates Branded Concentrates Fountain Foodservice 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 17 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 has 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 pays amounts on behalf of the Company and sells the amounts due from the Company to a participating financial institution. The card sponsor then bills 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, 2021, 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 (income) expense, 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. |
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 and interest rate 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 $1,475 million, $1,326 million and $1,181 million of transportation and warehousing costs during the years ended December 31, 2021, 2020 and 2019, 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 $540 million, $489 million and $670 million for the years ended December 31, 2021, 2020 and 2019, 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 $66 million, $69 million and $81 million for the years ended December 31, 2021, 2020 and 2019. 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 and is recorded SG&A expenses in the Consolidated Statements of Income. Refer to Note 11 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. Such differences are recorded in Cost of sales or Other (income) expense, net in the Consolidated Statements of Income, depending on the nature of the underlying transaction . |
New Accounting Pronouncements and Changes in Accounting Principles [Text Block] | RECENTLY ISSUED ACCOUNTING STANDARDS 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. In November 2021, the FASB issued ASU 2021-10, Government Assistance (Topic 832): Disclosures by Business Entities about Government Assistance . The objective of ASU 2021-10 is to require business entities to disclose information about certain government assistance they receive. ASU 2021-10 is effective for all entities for annual periods beginning after December 15, 2021. The Company is currently evaluating ASU 2021-10 but expects the impact of the disclosures 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 18. 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 18. |
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, 2021 | |
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 2020 2019 Net cash used in financing activities: Proceeds from commercial paper Net (repayment) issuance of commercial paper $ 7,288 $ 16,197 Repayments of commercial paper Net (repayment) issuance of commercial paper (8,534) (16,030) |
Significant Accounting Polici_3
Significant Accounting Policies (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
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 4 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) 2021 2020 2019 Balance, beginning of the period $ 21 $ 9 $ 8 Charges to (reversals of) bad debt expense (13) 17 2 Write-offs and adjustments (1) (5) (1) Balance, end of the period $ 7 $ 21 $ 9 |
Long-term Obligations and Bor_2
Long-term Obligations and Borrowing Arrangements (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Debt Disclosure [Abstract] | |
Schedule of debt | The following table summarizes the Company's long-term obligations: December 31, (in millions) 2021 2020 Senior unsecured notes $ 11,733 $ 13,065 Term loans — 423 Subtotal 11,733 13,488 Less - current portion (155) (2,345) Long-term obligations $ 11,578 $ 11,143 |
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) 2021 2020 Commercial paper notes $ 149 $ — Current portion of long-term obligations: Senior unsecured notes 155 2,246 Term loans — 99 Short-term borrowings and current portion of long-term obligations $ 304 $ 2,345 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 %) 2021 2020 2019 Weighted average commercial paper borrowings $ 943 $ 789 $ 1,754 Weighted average borrowing rates 0.25 % 1.24 % 2.56 % |
Schedule of long-term debt instruments | The Company's Notes consisted of the following: (in millions) December 31, Issuance Maturity Date Rate 2021 2020 2021 Merger Notes May 25, 2021 3.551% — 1,750 2021-A Notes November 15, 2021 3.200% — 250 2021-B Notes November 15, 2021 2.530% — 250 2022 Notes November 15, 2022 2.700% — 250 2023 Merger Notes May 25, 2023 4.057% 1,000 2,000 2023 Notes December 15, 2023 3.130% 500 500 2024 Notes (1) March 15, 2024 0.750% 1,150 — 2025 Merger Notes May 25, 2025 4.417% 1,000 1,000 2025 Notes November 15, 2025 3.400% 500 500 2026 Notes September 15, 2026 2.550% 400 400 2027 Notes June 15, 2027 3.430% 500 500 2028 Merger Notes May 25, 2028 4.597% 2,000 2,000 2030 Notes May 1, 2030 3.200% 750 750 2031 Notes March 15, 2031 2.250% 500 — 2038 Notes (3) May 1, 2038 7.450% 125 125 2038 Merger Notes May 25, 2038 4.985% 500 500 2045 Notes November 15, 2045 4.500% 550 550 2046 Notes December 15, 2046 4.420% 400 400 2048 Merger Notes May 25, 2048 5.085% 750 750 2050 Notes May 1, 2050 3.800% 750 750 2051 Notes March 15, 2051 3.350% 500 — Principal amount $ 11,875 $ 13,225 Adjustment from principal amount to carrying amount (2) (142) (160) Carrying amount $ 11,733 $ 13,065 (1) The 2024 Notes may be called anytime on or after March 15, 2022, in whole or in part, at the Company’s option, at a redemption price equal to 100% of the principal amount being redeemed, plus accrued and unpaid interest. (2) The carrying amount includes unamortized discounts, debt issuance costs and fair value adjustments related to the DPS Merger. (3) On January 24, 2022, the Company redeemed and retired the remainder of its 2038 Notes. Notice was provided to external parties of the Company’s intention to redeem the 2038 Notes prior to December 31, 2021, therefore the Notes have been reclassified and are reported in Current portion of long-term obligations within the Consolidated Balance Sheets. Refer to Note 21 for additional information. |
Schedule of line of credit facilities | The KDP Credit Agreements consisted of the following: December 31, (in millions) 2021 2020 Issuance Maturity Date Available Balances Carrying Value Carrying Value 2019 KDP Term Loan February 8, 2023 — — 425 KDP Revolver (1) February 28, 2023 2,400 — — 2020 364-Day Credit Agreement April 13, 2021 — — — 2021 364-Day Credit Agreement March 23, 2022 1,500 — — Principal amount $ — $ 425 Unamortized debt issuance costs — (2) Carrying amount $ — $ 423 (1) The KDP Revolver has $200 million letters of credit available, none of which were utilized as of December 31, 2021. |
Goodwill and Other Intangible_2
Goodwill and Other Intangible Assets (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule of changes in the carrying amount of goodwill by reportable segment | Changes in the carrying amount of goodwill by reportable segment for the years ended December 31, 2021 and 2020 are as follows: Coffee Systems Packaged Beverages Beverage Concentrates Latin America Beverages Total 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 Foreign currency translation 5 5 3 (15) (2) Balance as of December 31, 2021 $ 9,800 $ 5,319 $ 4,539 $ 524 $ 20,182 |
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, 2021 December 31, 2020 Brands (1) $ 19,865 $ 19,874 Trade names 2,480 2,480 Contractual arrangements 123 123 Distribution rights (2) 85 57 Total $ 22,553 $ 22,534 (1) The decrease was driven by $9 million of FX translation during the year ended December 31, 2021. (2) The Company executed ten agreements to acquire distribution rights during the year ended December 31, 2021, which resulted in an increase of $28 million. |
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, 2021 December 31, 2020 (in millions) Gross Amount Accumulated Amortization Net Amount Gross Amount Accumulated Amortization Net Amount Acquired technology $ 1,146 $ (401) $ 745 $ 1,146 $ (328) $ 818 Customer relationships 638 (169) 469 638 (135) 503 Trade names 128 (86) 42 127 (69) 58 Distribution rights 29 (11) 18 26 (6) 20 Contractual arrangements 24 (8) 16 24 (5) 19 Brands 21 (8) 13 21 (5) 16 Total $ 1,986 $ (683) $ 1,303 $ 1,982 $ (548) $ 1,434 |
Schedule of amortization expense for intangible assets with definite lives | Amortization expense for intangible assets with definite lives was as follows: Year Ended December 31, (in millions) 2021 2020 2019 Amortization expense for intangible assets with definite lives $ 134 $ 133 $ 126 |
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) 2022 2023 2024 2025 2026 Expected amortization expense for intangible assets with definite lives $ 134 $ 132 $ 124 $ 109 $ 105 |
Inputs in goodwill and other intangibles impairment analysis | The following table provides the range of rates used in the analysis as of October 1, 2021, 2020, and 2019: 2021 2020 2019 Rate Minimum Maximum Minimum Maximum Minimum Maximum Discount rates 6.5 % 10.0 % 6.0 % 10.0 % 7.3 % 13.0 % Long-term growth rates — % 3.8 % — % 3.5 % — % 2.5 % Royalty rates (1) N/A N/A 1.0 % 10.0 % 1.0 % 10.0 % (1) Royalty rates were not used for the impairment analysis for the year ended December 31, 2021 as KDP performed a Step 0 qualitative analysis for the trade names which historically utilized the Relief From Royalty Method. |
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, 2021, 2020, and 2019 are as follows: 2021 2020 2019 Headroom Percentage Carrying Value Fair Value Carrying Value Fair Value Carrying Value Fair Value Brands Impairment (1) $ — $ — $ 482 $ 415 $ — $ — 0 - 25% 3,311 3,663 5,052 5,775 6,356 7,251 26 - 50% 5,335 7,456 2,261 2,993 12,319 17,303 In excess of 50% 11,173 21,982 11,946 19,835 1,188 1,988 $ 19,819 $ 33,101 $ 19,741 $ 29,018 $ 19,863 $ 26,542 Trade Names (2) Impairment N/A N/A $ — $ — $ — $ — 0 - 25% N/A N/A 1 1 — — 26 - 50% N/A N/A — — — — In excess of 50% N/A N/A 2,479 6,990 2,479 6,650 $ — $ — $ 2,480 $ 6,991 $ 2,479 $ 6,650 (1) 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. (2) The Company performed a Step 0 qualitative impairment analysis on the trade names for the year ended December 31, 2021 |
Restructuring and Integration_2
Restructuring and Integration Costs (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Restructuring and Related Activities [Abstract] | |
Restructuring and related costs | Restructuring and integration charges incurred on the defined programs during the years ended December 31, 2021, 2020 and 2019 were as follows: Year Ended December 31, (in millions) 2021 2020 2019 DPS Integration program $ 202 $ 200 $ 232 Other restructuring charges — — 1 Total restructuring and integration charges $ 202 $ 200 $ 233 |
Schedule of restructuring reserve by type of cost | R estructuring liabilities for the DPS Integration Program, all of which were workforce reduction costs, as of December 31, 2021 and 2020 , along with charges to expense, cash payments, and non-cash charges during the years ended December 31, 2021 and 2020, were as follows: (in millions) Workforce Reduction Costs Balance as of December 31, 2019 $ 15 Charges to expense 31 Cash payments (29) Non-cash adjustment items (3) Balance as of December 31, 2020 14 Charges to expense 41 Cash payments (36) Non-cash adjustment items — Balance as of December 31, 2021 $ 19 |
Derivatives (Tables)
Derivatives (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
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) 2021 2020 Interest rate contracts Forward starting swaps, designated as cash flow hedges $ 2,500 $ — Receive-variable, pay-fixed interest rate swaps, not designated as hedging instruments — 450 Receive-fixed, pay-variable interest rate swaps, not designated as hedging instruments 400 — FX contracts Forward contracts, not designated as hedging instruments 463 476 Forward contracts, designated as cash flow hedges 385 333 Commodity contracts, not designated as hedging instruments 529 450 |
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 2021 2020 Assets: Interest rate contracts 2 Prepaid expenses and other current assets $ 2 $ — FX forward contracts 2 Prepaid expenses and other current assets 3 — Commodity contracts 2 Prepaid expenses and other current assets 133 45 Commodity contracts 2 Other non-current assets 2 12 Liabilities: Interest rate contracts 2 Other current liabilities $ — $ 2 FX forward contracts 2 Other current liabilities 2 6 Commodity contracts 2 Other current liabilities 28 5 Interest rate contracts 2 Other non-current liabilities 5 7 FX forward contracts 2 Other non-current liabilities 9 9 Commodity contracts 2 Other non-current liabilities 1 2 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) Balance Sheet Location 2021 2020 Assets: FX contracts Prepaid expenses and other current assets $ 6 $ — FX contracts Other non-current assets 1 — Liabilities: FX contracts Other current liabilities $ 1 $ 12 Interest rate contracts Other current liabilities 8 — Interest rate contracts Other non-current liabilities 128 — |
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 2021 2020 2019 Commodity contracts Cost of sales $ (148) $ (35) $ (10) Commodity contracts SG&A expenses (60) 22 (15) Interest rate contracts Interest expense (25) 7 7 FX forward contracts Cost of sales 4 (6) 5 FX forward contracts Other (income) expense, net — 6 18 IMPACT OF CASH FLOW HEDGES The following table presents the amount of (gains) losses, net, reclassified from AOCI into the Consolidated Statements of Income related to derivative instruments designated as cash flow hedging instruments during the periods presented: For the Year Ended December 31, (in millions) Income Statement Location 2021 2020 2019 Interest rate contracts Interest expense $ — $ — $ — FX contracts Cost of sales 18 2 — |
Leases (Tables)
Leases (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Leases [Abstract] | |
Lease, Cost [Table Text Block] | The following table presents the components of lease cost: For the Year Ended December 31, (in millions) 2021 2020 2019 Operating lease cost $ 121 $ 113 $ 82 Finance lease cost Amortization of right-of-use assets 63 47 48 Interest on lease liabilities 18 14 15 Variable lease cost (1) 31 27 28 Short-term lease cost — 1 5 Sublease income (1) (2) (3) Total lease cost $ 232 $ 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 and other information about the Company's leases: For the Year Ended December 31, (in millions) 2021 2020 2019 Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows from operating leases $ 113 $ 103 $ 77 Operating cash flows from finance leases 18 14 15 Financing cash flows from finance leases 54 52 38 Right-of-use assets obtained in exchange for lease obligations: Operating leases $ 293 $ 234 $ 189 Finance leases 408 90 71 |
Lessee, Operating Lease, Liability, Maturity [Table Text Block] | Future minimum lease payments under non-cancellable leases as of December 31, 2021 were as follows: (in millions) Operating Leases Finance Leases 2022 $ 95 $ 106 2023 91 106 2024 86 100 2025 78 95 2026 67 125 Thereafter 448 296 Total future minimum lease payments 865 828 Less: imputed interest (181) (128) Present value of minimum lease payments $ 684 $ 700 |
Finance Lease, Liability, Maturity [Table Text Block] | Future minimum lease payments under non-cancellable leases as of December 31, 2021 were as follows: (in millions) Operating Leases Finance Leases 2022 $ 95 $ 106 2023 91 106 2024 86 100 2025 78 95 2026 67 125 Thereafter 448 296 Total future minimum lease payments 865 828 Less: imputed interest (181) (128) Present value of minimum lease payments $ 684 $ 700 |
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, 2021 2020 Weighted average discount rate Operating leases 4.3 % 4.3 % Finance leases 3.6 % 4.4 % Weighted average remaining lease term Operating leases 12 years 12 years Finance leases 10 years 11 years |
Sale Leaseback Transactions | Sale Proceeds Carrying Value Gain on Sale 2021 December 29, 2021 (1) $ 102 $ 32 $ 70 2020 January 6, 2020 (2) $ 150 $ 131 $ 19 2019 December 23, 2019 (3) $ 170 $ 140 $ 30 (1) The sale-leaseback transaction included two manufacturing properties and two distribution properties. (2) The sale-leaseback transaction included two manufacturing properties. (3) The sale-leaseback transaction included three manufacturing properties. Sale Proceeds Carrying Value Gain on Sale 2020 January 10, 2020 (1) $ 50 $ 27 $ 23 2019 December 20, 2019 (2) 49 49 — December 13, 2019 (3) 8 8 — (1) The sale-leaseback transaction included two distribution properties. The initial term of the leaseback is five years and has two three-year renewal options. (2) The sale-leaseback transaction included KDP’s former headquarters in Plano, Texas. During the year ended December 31, 2019, KDP transferred the assets to assets held for sale and recognized an impairment of approximately $5 million. The leaseback ended in 2021 upon the Company’s relocation to a new facility. (3) The sale-leaseback transaction included certain properties in Waterbury, Vermont. During the year ended December 31, 2019, KDP transferred the assets to assets held for sale and recognized an impairment of approximately $12 million. The term of the leaseback ended in 2020 upon the Company’s relocation to a new facility. |
Employee Benefit Plans (Tables)
Employee Benefit Plans (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
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) 2021 2020 Projected Benefit Obligations Beginning balance $ 228 $ 226 Service cost 4 3 Interest cost 6 7 Actuarial losses, net (9) 22 Benefits paid (5) (4) Impact of changes in FX rates — (1) Settlements (9) (25) Ending balance $ 215 $ 228 Fair Value of Plan Assets Beginning balance $ 203 $ 204 Actual return on plan assets 1 28 Employer contributions — 1 Benefits paid (5) (4) Impact of changes in FX rates — (1) Settlements (9) (25) Ending balance $ 190 $ 203 Net liability recognized $ (25) $ (25) Non-current assets $ 14 $ 11 Current liability (1) (1) Non-current liability (38) (35) |
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) 2021 2020 Aggregate projected benefit obligation $ 104 $ 87 Aggregate accumulated benefit obligation 101 84 Aggregate fair value of plan assets 65 61 |
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) 2021 2020 2019 Service cost $ 4 $ 3 $ 2 Interest cost 6 7 9 Expected return on assets (8) (8) (9) Settlements (1) (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: 2022 2023 2024 2025 2026 2027-2031 Estimated future benefit payments $ 12 $ 12 $ 12 $ 12 $ 12 $ 61 |
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, 2021 2020 Weighted average discount rate 2.85 % 2.55 % 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, 2021 2020 2019 Weighted average discount rate 2.55 % 3.30 % 3.30 % Rate of increase in compensation levels 3.00 % 3.00 % 3.00 % Expected long-term rate of return 4.00 % 4.00 % 4.00 % For the Year Ended December 31, 2021 2020 2019 Fixed income securities: Asset allocation assumption 80 % 80 % 80 % Expected long-term rate of return 3.4 % 3.4 % 3.1 % Equity securities: Asset allocation assumption 20 % 20 % 20 % Expected long-term rate of return 6.5 % 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, 2021 2020 (in millions) Fair Value Hierarchy Level Pension Assets PRMB Assets Pension Assets PRMB Assets Cash and cash equivalents Level 1 $ 4 $ — $ 8 $ 1 U.S. equity securities (1)(2) Level 2 21 1 22 1 International equity securities (1)(2) Level 2 11 8 12 7 Fixed income securities (3) Level 2 154 1 161 1 Total $ 190 $ 10 $ 203 $ 10 (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 domestic and international corporate bonds and U.S. 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, 2021: Plan's employer identification number 36-6044243 Plan number 001 Expiration dates of collective bargaining agreements (1) March 20, 2022 through February 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 55% of the employees included in Central States. Two of the collective bargaining agreements are set to expire during 2022, covering approximately 14% 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: 2022 2023 2024 2025 2026 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 2021 2020 Marketable securities - trading Level 1 $ 43 $ 41 |
Segments (Tables)
Segments (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
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) 2021 2020 2019 Net sales Coffee Systems $ 4,716 $ 4,433 $ 4,233 Packaged Beverages 5,882 5,363 4,945 Beverage Concentrates 1,486 1,325 1,414 Latin America Beverages 599 497 528 Total net sales $ 12,683 $ 11,618 $ 11,120 Income from operations Coffee Systems $ 1,318 $ 1,268 $ 1,219 Packaged Beverages 1,010 822 757 Beverage Concentrates 1,044 932 955 Latin America Beverages 133 105 85 Unallocated corporate costs (611) (647) (638) Income from operations $ 2,894 $ 2,480 $ 2,378 |
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) 2021 2020 2019 Net sales Coffee Systems $ 4,716 $ 4,433 $ 4,233 Packaged Beverages 5,882 5,363 4,945 Beverage Concentrates 1,486 1,325 1,414 Latin America Beverages 599 497 528 Total net sales $ 12,683 $ 11,618 $ 11,120 Income from operations Coffee Systems $ 1,318 $ 1,268 $ 1,219 Packaged Beverages 1,010 822 757 Beverage Concentrates 1,044 932 955 Latin America Beverages 133 105 85 Unallocated corporate costs (611) (647) (638) Income from operations $ 2,894 $ 2,480 $ 2,378 |
Reconciliation of assets from segment to consolidated | December 31, (in millions) 2021 2020 Identifiable operating assets Coffee Systems $ 15,397 $ 15,295 Packaged Beverages 11,819 11,540 Beverage Concentrates 20,674 20,575 Latin America Beverages 1,763 1,763 Segment total 49,653 49,173 Unallocated corporate assets 915 518 Total identifiable operating assets 50,568 49,691 Investments in unconsolidated affiliates 30 88 Total assets $ 50,598 $ 49,779 |
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) 2021 2020 2019 Net sales U.S. $ 11,267 $ 10,318 $ 9,843 International 1,416 1,300 1,277 Net sales $ 12,683 $ 11,618 $ 11,120 |
Major Customers | The following table provides net sales for Walmart: For the Year Ended December 31, (in millions) 2021 2020 2019 Net sales Walmart $ 1,989 $ 1,782 $ 1,483 |
Long-lived Assets by Geographic Areas | December 31, (in millions) 2021 2020 Property, plant and equipment, net U.S. $ 2,084 $ 1,893 International 410 319 Total property, plant and equipment, net $ 2,494 $ 2,212 |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Earnings Per Share [Abstract] | |
Schedule of earnings per share | For the Year Ended December 31, (in millions, except per share data) 2021 2020 2019 Net income attributable to KDP $ 2,146 $ 1,325 $ 1,254 Weighted average common shares outstanding 1,415.7 1,407.2 1,406.7 Dilutive effect of stock-based awards 12.2 14.9 12.4 Weighted average common shares outstanding and common stock equivalents 1,427.9 1,422.1 1,419.1 Basic EPS $ 1.52 $ 0.94 $ 0.89 Diluted EPS $ 1.50 $ 0.93 $ 0.88 |
Stock Based Compensation (Table
Stock Based Compensation (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
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) 2021 2020 2019 Total stock-based compensation expense $ 88 $ 85 $ 64 Income tax benefit recognized in the Statements of Income (14) (13) (11) Stock-based compensation expense, net of tax $ 74 $ 72 $ 53 |
RSU Activity | The table below summarizes RSU activity for the year ended December 31, 2021 : RSUs Weighted Average Grant Date Fair Value Weighted Average Remaining Contractual Term (Years) Aggregate Intrinsic Value (in millions) Balance as of December 31, 2020 26,688,304 $ 19.66 2.0 $ 854 Granted 4,673,122 28.83 — — Vested and released (9,892,897) 10.89 — 333 Forfeited (2,660,038) 25.38 — — Balance as of December 31, 2021 18,808,491 25.74 2.2 693 |
PSU Activity | The table below summarizes PSU activity for the year ended December 31, 2021 : PSUs Weighted Average Grant Date Fair Value Weighted Average Remaining Contractual Term (Years) Aggregate Intrinsic Value (in millions) Balance as of December 31, 2020 651,042 $ 28.80 2.0 $ 21 Granted — — — — Vested and released — — — — Forfeited — — — — Balance as of December 31, 2021 651,042 28.80 1.1 24 |
Stock Option Activity | The table below summarizes stock option activity for the year ended December 31, 2021 : Stock Options Weighted Average Exercise Price Weighted Average Remaining Contractual Term (Years) Aggregate Intrinsic Value (in millions) Balance as of December 31, 2020 195,572 $ 12.11 4.7 $ 4 Granted — — — — Exercised (2,000) 14.76 — — Outstanding as of December 31, 2021 193,572 12.09 3.7 5 Exercisable as of December 31, 2021 193,572 12.09 3.7 5 |
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 and 2021 5-year term with graded vesting as follows: 0% in year 1, 0% in year 2, 60% in year 3, 20% in year 4, 20% in year 5 |
Revenue Recognition (Tables)
Revenue Recognition (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Revenue from Contract with Customer [Abstract] | |
Schedule of disaggregation of revenue | The following table disaggregates the Company's revenue by portfolio: (in millions) Coffee Systems Packaged Beverages Beverage Concentrates Latin America Beverages Total For the Year Ended December 31, 2021 CSD (1) $ — $ 2,825 $ 1,463 $ 435 $ 4,723 NCB (1) — 2,617 11 163 2,791 K-cup pods (2) 3,546 — — — 3,546 Appliances 907 — — — 907 Other 263 440 12 1 716 Net sales $ 4,716 $ 5,882 $ 1,486 $ 599 $ 12,683 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 (1) Represents net sales of owned and partner brands within the Company's portfolio. (2) Represents net sales from owned brands, |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
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) 2021 2020 2019 U.S. $ 2,353 $ 1,367 $ 1,389 International 445 386 305 Total $ 2,798 $ 1,753 $ 1,694 |
Schedule of components of income tax expense | The provision for income taxes has the following components: For the Year Ended December 31, (in millions) 2021 2020 2019 Current: Federal $ 386 $ 297 $ 303 State 136 103 98 International 100 79 62 Total current provision $ 622 $ 479 $ 463 Deferred: Federal $ 41 $ (31) $ (31) State (8) (6) 1 International (2) (14) 7 Total deferred provision $ 31 $ (51) $ (23) Total provision for income taxes $ 653 $ 428 $ 440 |
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) 2021 2020 2019 Statutory federal income tax rate 21.0 % 21.0 % 21.0 % State income taxes, net 3.8 % 4.0 % 3.7 % Impact of non-U.S. Operations 0.1 % 0.2 % 0.3 % Tax credits (0.8) % (1.3) % (0.9) % Valuation allowance for deferred tax assets (0.1) % (1.1) % — % U.S. taxation of foreign earnings 0.7 % 1.6 % 1.5 % Deferred rate change (0.7) % 0.5 % (0.3) % Uncertain tax positions — % (1.3) % — % U.S. federal provision to return (0.3) % 0.1 % (0.6) % Excess tax deductions on stock-based compensation (1.0) % — % — % Other 0.6 % 0.7 % 1.3 % Total provision for income taxes 23.3 % 24.4 % 26.0 % |
Schedule of deferred tax assets and liabilities | Deferred tax assets and liabilities were comprised of the following: December 31, (in millions) 2021 2020 Deferred tax assets: Operating lease liability $ 166 $ 161 Net operating losses carryforwards 43 46 Tax credit carryforwards 49 54 Accrued expenses 125 153 Share-based compensation 32 36 Multi-year upfront payments 13 15 Equity method investments 50 29 Other 41 27 Total deferred tax assets 519 521 Valuation allowances (48) (51) Total deferred tax assets, net of valuation allowances $ 471 $ 470 Deferred tax liabilities: Brands, trade names and other intangible assets $ (5,909) $ (5,916) Property, plant and equipment (314) (293) Derivative instruments (18) (38) Right of use assets (164) (159) Other (10) (12) Total deferred tax liabilities (6,415) (6,418) Net deferred tax liabilities $ (5,944) $ (5,948) |
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) 2021 2020 2019 Balance, beginning of the period $ 18 $ 43 $ 50 Increases related to tax positions taken during the current year 2 2 2 (Decreases) increases related to tax positions taken during the prior year (3) 2 3 Decreases related to settlements with taxing authorities (1) (8) (8) Decreases related to lapse of applicable statute of limitations (4) (21) (4) Balance, end of the period $ 12 $ 18 $ 43 |
Acquisitions and Investments _2
Acquisitions and Investments in Unconsolidated Subsidiaries (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Business Combinations [Abstract] | |
Equity method investments | The following table summarizes the Company's investments in unconsolidated affiliates: December 31, (in millions) Ownership Interest (1) 2021 2020 BodyArmor — % $ — $ 51 Bedford 30.0 % — — Dyla LLC 12.4 % 12 12 Force Holdings LLC (2) 33.3 % 5 5 Beverage startup companies (3) (various) 8 15 Other (various) 5 5 Investments in unconsolidated affiliates $ 30 $ 88 (1) Represents the Company’s ownership interest as of December 31, 2021 on an undiluted basis, which does not reflect the potential dilution resulting from equity arrangements of the entity, including vesting of such arrangements upon a change in control. (2) Force Holdings LLC has a 14.1% ownership interest in Dyla LLC. (3) Beverage startup companies represent equity method investments in development stage entities and may include entities which are pre-revenue, in test markets, or in early operations. |
Accumulated Other Comprehensi_2
Accumulated Other Comprehensive Income (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Equity [Abstract] | |
Accumulated other comprehensive income (loss), net of taxes | The following table provides a summary of changes in AOCI, net of taxes: (in millions) Foreign Currency Translation Pension and PRMB Liabilities Cash Flow Hedges AOCI 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 loss (9) (4) (14) (27) Balance as of December 31, 2020 95 (4) (14) 77 OCI before reclassifications (14) — (102) (116) Amounts reclassified from AOCI — — 13 13 Net current period other comprehensive loss (14) — (89) (103) Balance as of December 31, 2021 $ 81 (4) $ (103) $ (26) |
Reclassification out of Accumulated Other Comprehensive Income | The following table presents the amount of losses reclassified from AOCI into the Consolidated Statements of Income: For the Year Ended December 31, (in millions) Income Statement Caption 2021 2020 2019 Pension and PRMB liabilities SG&A expenses $ — $ 1 $ (1) Income tax benefit — — — Total, net of tax $ — $ 1 $ (1) Cash flow hedges: Interest rate contracts Interest expense $ — $ — $ — $ — FX contracts Cost of sales 18 2 — Total 18 2 — Income tax benefit (5) — — Total, net of tax $ 13 $ 2 $ — |
Property, Plant and Equipment_2
Property, Plant and Equipment (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
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) 2021 2020 Land $ 50 $ 54 Buildings and improvements 793 520 Machinery and equipment 2,369 1,870 Cold drink equipment 89 80 Software 404 315 Construction-in-progress 138 393 Property, plant and equipment, gross 3,843 3,232 Less: accumulated depreciation and amortization (1,349) (1,020) Property, plant and equipment, net $ 2,494 $ 2,212 |
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) 2021 2020 2019 Cost of sales $ 233 $ 215 $ 199 SG&A expenses 177 147 159 Total depreciation expense $ 410 $ 362 $ 358 |
Other Financial Information (Ta
Other Financial Information (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Schedule of Cash and Cash Equivalents | The following table provides a reconciliation of cash, cash equivalents, restricted cash and restricted cash equivalents reported with the Consolidated Balance Sheets to the total of the same amounts shown in the Consolidated Statements of Cash Flows: December 31, (in millions) 2021 2020 Cash and cash equivalents $ 567 $ 240 Restricted cash and restricted cash equivalents 1 15 Total cash, cash equivalents, restricted cash and restricted cash equivalents $ 568 $ 255 |
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) 2021 2020 Cash and cash equivalents $ 567 $ 240 Restricted cash and restricted cash equivalents 1 15 Total cash, cash equivalents, restricted cash and restricted cash equivalents $ 568 $ 255 |
Schedule of Other Assets [Table Text Block] | The following tables provide selected financial information from the Consolidated Balance Sheets: December 31, (in millions) 2021 2020 Inventories: Raw materials $ 330 $ 260 Work in process 6 6 Finished goods 577 520 Total 913 786 Allowance for excess and obsolete inventories (19) (24) Inventories $ 894 $ 762 Prepaid expenses and other current assets: Other receivables $ 112 $ 85 Customer incentive programs 21 34 Derivative instruments 144 45 Prepaid marketing 12 15 Spare parts 72 55 Assets held for sale — 2 Income tax receivable 14 11 Other 72 76 Total prepaid expenses and other current assets $ 447 $ 323 Other non-current assets: Customer incentive programs $ 59 $ 70 Equity securities (1) 58 41 Operating lease right-of-use assets 673 645 Derivative instruments 3 12 Equity securities without readily determinable fair values 1 1 Other 143 125 Total other non-current assets $ 937 $ 894 |
Schedule of other assets and other liabilities | December 31, (in millions) 2021 2020 Accrued expenses: Customer rebates & incentives $ 446 $ 382 Accrued compensation 227 215 Insurance reserve 33 35 Interest accrual 55 57 Accrued professional fees 19 21 Other accrued expenses 330 330 Total accrued expenses $ 1,110 $ 1,040 Other current liabilities: Dividends payable $ 265 $ 212 Income taxes payable 144 39 Operating lease liability 76 72 Finance lease liability 79 44 Derivative instruments 39 25 Holdback liability — 15 Other 10 9 Total other current liabilities $ 613 $ 416 Other non-current liabilities: Long-term pension and postretirement liability $ 40 $ 38 Insurance reserves 75 72 Operating lease liability 608 580 Finance lease liability 621 298 Derivative instruments 143 18 Deferred compensation liability 43 41 Other 47 72 Total other non-current liabilities $ 1,577 $ 1,119 |
Commitments and Contingencies (
Commitments and Contingencies (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Commitments and Contingencies Disclosure [Abstract] | |
Schedule of product warranty liability | (in millions) Accrued Product Warranties Balance as of December 31, 2019 $ 8 Accruals for warranties issued 15 Settlements (13) Balance as of December 31, 2020 10 Accruals for warranties issued 21 Settlements (18) Balance as of December 31, 2021 $ 13 |
Transactions with Variable In_2
Transactions with Variable Interest Entities (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
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) 2022 2023 2024 2025 2026 Fixed service fees $ 8 $ 8 $ 8 $ 8 $ 8 |
Variable Interest Entity, Not Primary Beneficiary, Schedule of Assets and Liabilities Associated with VIE Relationship | The following table provides the carrying amounts of the right-to-use assets and lease obligations recorded on the Company’s Consolidated Balance Sheets associated with these leasing arrangements related to the VIEs as of December 31, 2021 and 2020. December 31, (in millions) 2021 (1) 2020 (2) Current assets $ 19 $ 8 Non-current assets 312 159 Current liabilities 13 9 Non-current liabilities 323 155 (1) The leasing agreements included as of December 31, 2021 include seven manufacturing sites, two distribution centers and our Frisco, Texas headquarters. (2) The leasing agreements included as of December 31, 2020 include five manufacturing sites. |
Related Parties (Tables) (Table
Related Parties (Tables) (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
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) 2021 2020 2019 Receipts from related parties $ 113 $ 112 $ 93 Payments to related parties 67 73 57 |
Background and Basis of Prese_4
Background and Basis of Presentation (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |||
Proceeds from issuance of commercial paper | $ 5,406 | $ 7,288 | $ 16,197 |
Repayments of commercial paper | $ (5,257) | $ (8,534) | $ (16,030) |
Significant Accounting Polici_4
Significant Accounting Policies (Details) - USD ($) $ in Millions | 12 Months Ended | |||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Allowance for Credit Losses [Roll Forward] | ||||
Allowance for Doubtful Accounts Receivable | $ 7 | $ 21 | $ 9 | $ 8 |
Charges to (reversals of) bad debt expense | (13) | 17 | 2 | |
Write-offs and adjustments | 1 | 5 | 1 | |
Impairment of Long-Lived Assets Held-for-use | 0 | 1 | 24 | |
Selling, general and administrative expenses | 4,153 | 3,978 | 3,962 | |
Marketing and Advertising Expense | 540 | 489 | 670 | |
Research and Development Expense | 66 | 69 | 81 | |
Walmart [Member] | ||||
Accounts Receivable, Net | $ 157 | 184 | ||
Minimum | Building and Building Improvements [Member] | ||||
Allowance for Credit Losses [Roll Forward] | ||||
Property plant and equipment useful life | 3 years | |||
Minimum | Machinery and Equipment [Member] | ||||
Allowance for Credit Losses [Roll Forward] | ||||
Property plant and equipment useful life | 2 years | |||
Minimum | Cold Drink Equipment [Member] | ||||
Allowance for Credit Losses [Roll Forward] | ||||
Property plant and equipment useful life | 2 years | |||
Minimum | Computer Equipment and Software [Member] | ||||
Allowance for Credit Losses [Roll Forward] | ||||
Property plant and equipment useful life | 2 years | |||
Maximum | Building and Building Improvements [Member] | ||||
Allowance for Credit Losses [Roll Forward] | ||||
Property plant and equipment useful life | 40 years | |||
Maximum | Machinery and Equipment [Member] | ||||
Allowance for Credit Losses [Roll Forward] | ||||
Property plant and equipment useful life | 20 years | |||
Maximum | Cold Drink Equipment [Member] | ||||
Allowance for Credit Losses [Roll Forward] | ||||
Property plant and equipment useful life | 7 years | |||
Maximum | Computer Equipment and Software [Member] | ||||
Allowance for Credit Losses [Roll Forward] | ||||
Property plant and equipment useful life | 8 years | |||
Acquired technology | ||||
Allowance for Credit Losses [Roll Forward] | ||||
Finite-Lived Intangible Asset, Useful Life | 20 years | |||
Customer relationships | Minimum | ||||
Allowance for Credit Losses [Roll Forward] | ||||
Finite-Lived Intangible Asset, Useful Life | 8 years | |||
Customer relationships | Maximum | ||||
Allowance for Credit Losses [Roll Forward] | ||||
Finite-Lived Intangible Asset, Useful Life | 40 years | |||
Trade names | ||||
Allowance for Credit Losses [Roll Forward] | ||||
Finite-Lived Intangible Asset, Useful Life | 10 years | |||
Distribution rights | Minimum | ||||
Allowance for Credit Losses [Roll Forward] | ||||
Finite-Lived Intangible Asset, Useful Life | 4 years | |||
Distribution rights | Maximum | ||||
Allowance for Credit Losses [Roll Forward] | ||||
Finite-Lived Intangible Asset, Useful Life | 10 years | |||
Brands | ||||
Allowance for Credit Losses [Roll Forward] | ||||
Finite-Lived Intangible Asset, Useful Life | 5 years | |||
Contractual arrangements | Minimum | ||||
Allowance for Credit Losses [Roll Forward] | ||||
Finite-Lived Intangible Asset, Useful Life | 10 years | |||
Contractual arrangements | Maximum | ||||
Allowance for Credit Losses [Roll Forward] | ||||
Finite-Lived Intangible Asset, Useful Life | 12 years | |||
Shipping and Handling [Member] | ||||
Allowance for Credit Losses [Roll Forward] | ||||
Selling, general and administrative expenses | $ 1,475 | $ 1,326 | $ 1,181 |
Long-term Obligations and Bor_3
Long-term Obligations and Borrowing Arrangements - Long-Term Debt (Details) - USD ($) $ in Millions | Dec. 31, 2021 | Dec. 31, 2020 |
Debt Instrument [Line Items] | ||
Long-term debt | $ 11,733 | $ 13,488 |
Current portion of long-term debt | (155) | (2,345) |
Long-term obligations | 11,578 | 11,143 |
Senior Notes | ||
Debt Instrument [Line Items] | ||
Long-term debt | 11,733 | 13,065 |
Current portion of long-term debt | (155) | (2,246) |
Loans Payable | ||
Debt Instrument [Line Items] | ||
Long-term debt | 0 | 423 |
Current portion of long-term debt | $ 0 | $ (99) |
Long-term Obligations and Bor_4
Long-term Obligations and Borrowing Arrangements - Current Debt (Details) - USD ($) $ in Millions | Dec. 31, 2021 | Dec. 31, 2020 |
Short-term Debt [Line Items] | ||
Current portion of long-term debt | $ 155 | $ 2,345 |
Short-term borrowings and current portion of long-term obligations | 304 | 2,345 |
Commercial Paper | ||
Short-term Debt [Line Items] | ||
Short-term debt | 149 | 0 |
Senior Notes | ||
Short-term Debt [Line Items] | ||
Current portion of long-term debt | 155 | 2,246 |
Loans Payable | ||
Short-term Debt [Line Items] | ||
Current portion of long-term debt | $ 0 | $ 99 |
Long-term Obligations and Bor_5
Long-term Obligations and Borrowing Arrangements - Senior Unsecured Notes (Details) - USD ($) $ in Millions | 12 Months Ended | ||||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | Mar. 15, 2021 | ||
Debt Instrument [Line Items] | |||||
Long-term debt | $ 11,733 | $ 13,488 | |||
Gain (Loss) on Extinguishment of Debt | (105) | (4) | $ (11) | ||
2023 Merger Notes | |||||
Debt Instrument [Line Items] | |||||
Extinguishment of Debt, Amount | 1,000 | ||||
Senior Notes Issued March 2021 [Member] | |||||
Debt Instrument [Line Items] | |||||
Debt Instrument, Unamortized Discount | $ 3 | ||||
Debt Issuance Costs, Gross | $ 13 | ||||
Senior Subordinated Notes | |||||
Debt Instrument [Line Items] | |||||
Gain (Loss) on Extinguishment of Debt | 104 | ||||
Senior Notes | |||||
Debt Instrument [Line Items] | |||||
Long term debt, carrying value | 11,875 | 13,225 | |||
Unamortized debt issuance costs | [1] | (142) | (160) | ||
Long-term debt | $ 11,733 | 13,065 | |||
Senior Notes | 2021 Notes | |||||
Debt Instrument [Line Items] | |||||
Interest rate | 3.20% | ||||
Long term debt, carrying value | $ 0 | 250 | |||
Senior Notes | 2021-B Notes | |||||
Debt Instrument [Line Items] | |||||
Interest rate | 2.53% | ||||
Long term debt, carrying value | $ 0 | 250 | |||
Senior Notes | 2022 Notes | |||||
Debt Instrument [Line Items] | |||||
Interest rate | 2.70% | ||||
Long term debt, carrying value | $ 0 | 250 | |||
Senior Notes | 2023 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 | [2] | 7.45% | |||
Long term debt, carrying value | [2] | $ 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 | $ 0 | 1,750 | |||
Senior Notes | 2023 Merger Notes | |||||
Debt Instrument [Line Items] | |||||
Interest rate | 4.057% | ||||
Long term debt, carrying value | $ 1,000 | 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 | 750 | |||
Senior Notes | 2050 Notes | |||||
Debt Instrument [Line Items] | |||||
Interest rate | 3.80% | ||||
Long term debt, carrying value | $ 750 | $ 750 | |||
Senior Notes | 2024 Notes | |||||
Debt Instrument [Line Items] | |||||
Interest rate | [3] | 0.75% | |||
Long term debt, carrying value | [3] | $ 1,150 | 0 | ||
Senior Notes | 2031 Notes | |||||
Debt Instrument [Line Items] | |||||
Interest rate | 2.25% | ||||
Long term debt, carrying value | $ 500 | 0 | |||
Senior Notes | 2051 Notes | |||||
Debt Instrument [Line Items] | |||||
Interest rate | 3.35% | ||||
Long term debt, carrying value | $ 500 | 0 | |||
Level 2 | Nonrecurring | Senior Notes | |||||
Debt Instrument [Line Items] | |||||
Long-term debt, fair value | $ 13,078 | $ 15,274 | |||
[1] | The carrying amount includes unamortized discounts, debt issuance costs and fair value adjustments related to the DPS Merger. | ||||
[2] | On January 24, 2022, the Company redeemed and retired the remainder of its 2038 Notes. Notice was provided to external parties of the Company’s intention to redeem the 2038 Notes prior to December 31, 2021, therefore the Notes have been reclassified and are reported in Current portion of long-term obligations within the Consolidated Balance Sheets. Refer to Note 21 for additional information. | ||||
[3] | (1) The 2024 Notes may be called anytime on or after March 15, 2022, in whole or in part, at the Company’s option, at a redemption price equal to 100% of the principal amount being redeemed, plus accrued and unpaid interest. |
Long-term Obligations and Bor_6
Long-term Obligations and Borrowing Arrangements - Borrowing Arrangements (Details) - USD ($) | 12 Months Ended | ||||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |||
Debt Instrument [Line Items] | |||||
Long-term debt | $ 11,733,000,000 | $ 13,488,000,000 | |||
Loss on early extinguishment of debt | 105,000,000 | 4,000,000 | $ 11,000,000 | ||
2019 KDP Term Loan [Member] | |||||
Debt Instrument [Line Items] | |||||
Long term debt, carrying value | 425,000,000 | ||||
Maximum borrowing capacity | 0 | ||||
Loss on early extinguishment of debt | 1,000,000 | ||||
KDP Credit Agreements | |||||
Debt Instrument [Line Items] | |||||
Long term debt, carrying value | 0 | 425,000,000 | |||
Unamortized debt issuance costs | 0 | (2,000,000) | |||
Long-term debt | 0 | 423,000,000 | |||
2020 364 Day Credit Agreement [Member] | |||||
Debt Instrument [Line Items] | |||||
Long term debt, carrying value | 0 | 0 | |||
Maximum borrowing capacity | 0 | ||||
2021 364 Day Credit Agreement [Member] | |||||
Debt Instrument [Line Items] | |||||
Maximum borrowing capacity | 1,500,000,000 | ||||
Debt Instrument, Fee Amount | $ 0.00750 | ||||
Minimum | LIBOR | Line of Credit | KDP Credit Agreements | |||||
Debt Instrument [Line Items] | |||||
Basis spread on variable rate | 0.875% | ||||
Minimum | LIBOR | Line of Credit | 2021 364 Day Credit Agreement [Member] | |||||
Debt Instrument [Line Items] | |||||
Basis spread on variable rate | 1.00% | ||||
Minimum | Base Rate | Line of Credit | KDP Credit Agreements | |||||
Debt Instrument [Line Items] | |||||
Basis spread on variable rate | 0.00% | ||||
Minimum | Base Rate | Line of Credit | 2021 364 Day Credit Agreement [Member] | |||||
Debt Instrument [Line Items] | |||||
Basis spread on variable rate | 0.00% | ||||
Maximum | LIBOR | Line of Credit | KDP Credit Agreements | |||||
Debt Instrument [Line Items] | |||||
Basis spread on variable rate | 1.50% | ||||
Maximum | LIBOR | Line of Credit | 2021 364 Day Credit Agreement [Member] | |||||
Debt Instrument [Line Items] | |||||
Basis spread on variable rate | 1.625% | ||||
Maximum | Base Rate | Line of Credit | KDP Credit Agreements | |||||
Debt Instrument [Line Items] | |||||
Basis spread on variable rate | 0.50% | ||||
Maximum | Base Rate | Line of Credit | 2021 364 Day Credit Agreement [Member] | |||||
Debt Instrument [Line Items] | |||||
Basis spread on variable rate | 0.625% | ||||
Level 2 | 2019 KDP Term Loan [Member] | |||||
Debt Instrument [Line Items] | |||||
Long term debt, carrying value | $ 0 | ||||
Revolving Credit Facility | |||||
Debt Instrument [Line Items] | |||||
Long term debt, carrying value | 0 | [1] | $ 0 | ||
Maximum borrowing capacity | [1] | $ 2,400,000,000 | |||
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 | $ 200,000,000 | ||||
Letters of Credit Outstanding, Amount | 0 | ||||
Letter of Credit | Line of Credit | |||||
Debt Instrument [Line Items] | |||||
Maximum borrowing capacity | 150,000,000 | ||||
Letters of Credit Outstanding, Amount | $ 96,000,000 | ||||
[1] | The KDP Revolver has $200 million letters of credit available, none of which were utilized as of December 31, 2021. |
Long-term Obligations and Bor_7
Long-term Obligations and Borrowing Arrangements - Commercial Paper Program (Details) - Commercial Paper - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Short-term Debt [Line Items] | |||
Average outstanding amount | $ 943 | $ 789 | $ 1,754 |
Weighted average interest rate over time | 0.25% | 1.24% | 2.56% |
Short-term debt | $ 149 | $ 0 |
Long-term Obligations and Bor_8
Long-term Obligations and Borrowing Arrangements - Letter of Credit Facilities (Details) $ in Millions | Dec. 31, 2021USD ($) |
2020 364 Day Credit Agreement [Member] | |
Line of Credit Facility [Line Items] | |
Maximum borrowing capacity | $ 0 |
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 | 150 |
Letters of Credit Outstanding, Amount | 96 |
Line of Credit Facility, Remaining Borrowing Capacity | $ 54 |
Goodwill and Other Intangible_3
Goodwill and Other Intangible Assets - Goodwill (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Change in goodwill by operating segments [Abstract] | ||
Balance (beginning of period) | $ 20,184 | $ 20,172 |
Foreign currency impact | (2) | 12 |
Balance (end of period) | 20,182 | 20,184 |
Beverage Concentrates | ||
Change in goodwill by operating segments [Abstract] | ||
Balance (beginning of period) | 4,536 | 4,526 |
Foreign currency impact | 3 | 10 |
Balance (end of period) | 4,539 | 4,536 |
Packaged Beverages | ||
Change in goodwill by operating segments [Abstract] | ||
Balance (beginning of period) | 5,314 | 5,301 |
Foreign currency impact | 5 | 13 |
Balance (end of period) | 5,319 | 5,314 |
Latin America Beverages | ||
Change in goodwill by operating segments [Abstract] | ||
Balance (beginning of period) | 539 | 570 |
Foreign currency impact | (15) | (31) |
Balance (end of period) | 524 | 539 |
Coffee Systems | ||
Change in goodwill by operating segments [Abstract] | ||
Balance (beginning of period) | 9,795 | 9,775 |
Foreign currency impact | 5 | 20 |
Balance (end of period) | $ 9,800 | $ 9,795 |
Goodwill and Other Intangible_4
Goodwill and Other Intangible Assets - Intangible Assets (Details) - USD ($) $ in Millions | 12 Months Ended | |||||||||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | Oct. 01, 2020 | Oct. 01, 2019 | Oct. 01, 2018 | |||||
Change in intangible assets other than goodwill [Abstract] | ||||||||||
Carrying Value | $ 22,553 | $ 22,534 | ||||||||
Impairment of intangible assets | 0 | 67 | $ 0 | |||||||
Indefinite-lived Intangible Assets, Foreign Currency Translation Gain (Loss) | (9) | |||||||||
Finite-lived intangible assets, gross | 1,986 | 1,982 | ||||||||
Accumulated Amortization | (683) | (548) | ||||||||
Finite-lived intangible assets, net | 1,303 | 1,434 | ||||||||
Amortization expense for intangible assets with definite lives | 134 | 133 | $ 126 | |||||||
Amortization expense of intangible assets [Abstract] | ||||||||||
2020 | 134 | |||||||||
2021 | 132 | |||||||||
2022 | 124 | |||||||||
2023 | 109 | |||||||||
2024 | 105 | |||||||||
Acquired technology | ||||||||||
Change in intangible assets other than goodwill [Abstract] | ||||||||||
Finite-lived intangible assets, gross | 1,146 | 1,146 | ||||||||
Accumulated Amortization | (401) | (328) | ||||||||
Finite-lived intangible assets, net | 745 | 818 | ||||||||
Customer relationships | ||||||||||
Change in intangible assets other than goodwill [Abstract] | ||||||||||
Finite-lived intangible assets, gross | 638 | 638 | ||||||||
Accumulated Amortization | (169) | (135) | ||||||||
Finite-lived intangible assets, net | 469 | 503 | ||||||||
Trade names | ||||||||||
Change in intangible assets other than goodwill [Abstract] | ||||||||||
Finite-lived intangible assets, gross | 128 | 127 | ||||||||
Accumulated Amortization | (86) | (69) | ||||||||
Finite-lived intangible assets, net | 42 | 58 | ||||||||
Contractual arrangements | ||||||||||
Change in intangible assets other than goodwill [Abstract] | ||||||||||
Finite-lived intangible assets, gross | 24 | 24 | ||||||||
Accumulated Amortization | (8) | (5) | ||||||||
Finite-lived intangible assets, net | 16 | 19 | ||||||||
Brands | ||||||||||
Change in intangible assets other than goodwill [Abstract] | ||||||||||
Finite-lived intangible assets, gross | 21 | 21 | ||||||||
Accumulated Amortization | (8) | (5) | ||||||||
Finite-lived intangible assets, net | 13 | 16 | ||||||||
Distribution rights | ||||||||||
Change in intangible assets other than goodwill [Abstract] | ||||||||||
Finite-lived intangible assets, gross | 29 | 26 | ||||||||
Accumulated Amortization | (11) | (6) | ||||||||
Finite-lived intangible assets, net | 18 | 20 | ||||||||
Brands | ||||||||||
Change in intangible assets other than goodwill [Abstract] | ||||||||||
Carrying Value | 19,865 | [1] | 19,874 | [1] | $ 19,819 | $ 19,741 | $ 19,863 | |||
Trade names | ||||||||||
Change in intangible assets other than goodwill [Abstract] | ||||||||||
Carrying Value | 123 | 2,480 | $ 0 | [2] | $ 2,480 | $ 2,479 | ||||
Contractual arrangements | ||||||||||
Change in intangible assets other than goodwill [Abstract] | ||||||||||
Carrying Value | 2,480 | 123 | ||||||||
Distribution rights | ||||||||||
Change in intangible assets other than goodwill [Abstract] | ||||||||||
Carrying Value | [3] | 85 | $ 57 | |||||||
Indefinite-lived Intangible assets acquired | $ 28 | |||||||||
[1] | The decrease was driven by $9 million of FX translation during the year ended December 31, 2021. | |||||||||
[2] | The Company performed a Step 0 qualitative impairment analysis on the trade names for the year ended December 31, 2021. | |||||||||
[3] | The Company executed ten agreements to acquire distribution rights during the year ended December 31, 2021, which resulted in an increase of $28 million. |
Goodwill and Other Intangible_5
Goodwill and Other Intangible Assets - Impairment Analysis (Details) $ in Millions | 12 Months Ended | |||||||||
Dec. 31, 2021USD ($) | Dec. 31, 2020USD ($) | Dec. 31, 2019 | Oct. 01, 2020USD ($) | Oct. 01, 2019USD ($) | Oct. 01, 2018USD ($) | |||||
Goodwill [Line Items] | ||||||||||
Carrying Value | $ 22,553 | $ 22,534 | ||||||||
Brands | ||||||||||
Goodwill [Line Items] | ||||||||||
Carrying Value | 19,865 | [1] | 19,874 | [1] | $ 19,819 | $ 19,741 | $ 19,863 | |||
Fair Value | 33,101 | 29,018 | 26,542 | |||||||
Brands | Impairment(1) | ||||||||||
Goodwill [Line Items] | ||||||||||
Carrying Value | 0 | 482 | [2] | 0 | ||||||
Fair Value | 0 | 415 | [2] | 0 | ||||||
Brands | 0 - 25% | ||||||||||
Goodwill [Line Items] | ||||||||||
Carrying Value | 3,311 | 5,052 | 6,356 | |||||||
Fair Value | 3,663 | 5,775 | 7,251 | |||||||
Brands | 26 - 50% | ||||||||||
Goodwill [Line Items] | ||||||||||
Carrying Value | 5,335 | 2,261 | 12,319 | |||||||
Fair Value | 7,456 | 2,993 | 17,303 | |||||||
Brands | In excess of 50% | ||||||||||
Goodwill [Line Items] | ||||||||||
Carrying Value | 11,173 | 11,946 | 1,188 | |||||||
Fair Value | 21,982 | 19,835 | 1,988 | |||||||
Trade Names (2) | ||||||||||
Goodwill [Line Items] | ||||||||||
Carrying Value | $ 123 | $ 2,480 | 0 | [3] | 2,480 | 2,479 | ||||
Fair Value | $ 0 | [3] | 6,991 | 6,650 | ||||||
Trade Names (2) | Impairment(1) | ||||||||||
Goodwill [Line Items] | ||||||||||
Carrying Value | 0 | 0 | ||||||||
Fair Value | 0 | 0 | ||||||||
Trade Names (2) | 0 - 25% | ||||||||||
Goodwill [Line Items] | ||||||||||
Carrying Value | 1 | 0 | ||||||||
Fair Value | 1 | 0 | ||||||||
Trade Names (2) | 26 - 50% | ||||||||||
Goodwill [Line Items] | ||||||||||
Carrying Value | 0 | 0 | ||||||||
Fair Value | 0 | 0 | ||||||||
Trade Names (2) | In excess of 50% | ||||||||||
Goodwill [Line Items] | ||||||||||
Carrying Value | 2,479 | 2,479 | ||||||||
Fair Value | $ 6,990 | $ 6,650 | ||||||||
Measurement Input, Discount Rate [Member] | Minimum | ||||||||||
Goodwill [Line Items] | ||||||||||
Goodwill and Other Intangible Assets Measurement Input | 0.065 | 0.060 | 0.073 | |||||||
Measurement Input, Discount Rate [Member] | Maximum | ||||||||||
Goodwill [Line Items] | ||||||||||
Goodwill and Other Intangible Assets Measurement Input | 0.100 | 0.100 | 0.130 | |||||||
Measurement Input, Long-term growth rate [Member] | Minimum | ||||||||||
Goodwill [Line Items] | ||||||||||
Goodwill and Other Intangible Assets Measurement Input | 0 | 0 | 0 | |||||||
Measurement Input, Long-term growth rate [Member] | Maximum | ||||||||||
Goodwill [Line Items] | ||||||||||
Goodwill and Other Intangible Assets Measurement Input | 0.038 | 0.035 | 0.025 | |||||||
Measurement Input, Royalty Rate [Member] | Minimum | ||||||||||
Goodwill [Line Items] | ||||||||||
Goodwill and Other Intangible Assets Measurement Input | 0.010 | 0.010 | ||||||||
Measurement Input, Royalty Rate [Member] | Maximum | ||||||||||
Goodwill [Line Items] | ||||||||||
Goodwill and Other Intangible Assets Measurement Input | 0.100 | 0.100 | ||||||||
[1] | The decrease was driven by $9 million of FX translation during the year ended December 31, 2021. | |||||||||
[2] | The impairment line represents the carrying value and fair value of Bai as of the October 1, 2020 measurement date, prior to the $67 million impairment recorded during the fourth quarter of 2020. | |||||||||
[3] | The Company performed a Step 0 qualitative impairment analysis on the trade names for the year ended December 31, 2021. |
Restructuring and Integration_3
Restructuring and Integration Costs - Schedule of Charges Incurred (Details) - USD ($) $ in Millions | 12 Months Ended | 42 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2021 | |
Restructuring Cost and Reserve [Line Items] | ||||
Total restructuring and integration charges | $ 202 | $ 200 | $ 233 | |
DPS Integration program | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Total restructuring and integration charges | $ 790 | |||
DPS Integration program | Corporate Unallocated | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Total restructuring and integration charges | 202 | 200 | 232 | |
Other restructuring charges | 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) - Workforce Reduction Costs - USD ($) | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Restructuring Reserve [Roll Forward] | ||
Balance at beginning of period | $ 14,000,000 | $ 15,000,000 |
Charges to expense | 41,000,000 | 31,000,000 |
Cash payments | (36,000,000) | (29,000,000) |
Non-cash adjustment items | 0 | 3,000,000 |
Balance at end of period | $ 19,000,000 | $ 14,000,000 |
Restructuring and Integration_5
Restructuring and Integration Costs - Restructuring Programs (Details) - USD ($) $ in Millions | 12 Months Ended | 42 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2021 | |
Restructuring Cost and Reserve [Line Items] | ||||
Expected annual synergies | $ 600 | |||
Restructuring and integration charges | 202 | $ 200 | $ 233 | |
DPS Integration program | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring and integration charges | $ 790 | |||
Corporate Unallocated | DPS Integration program | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring and integration charges | $ 202 | $ 200 | $ 232 |
Derivatives - Notional Amounts
Derivatives - Notional Amounts (Details) - USD ($) $ in Millions | Dec. 31, 2021 | Dec. 31, 2020 |
Receive-Fixed, Pay-Variable Interest Rate Swaps | Not Designated as Hedging Instrument | ||
Derivative [Line Items] | ||
Derivative Notional Amounts | $ 400 | $ 0 |
Receive-Variable Pay-Fixed Interest Rate Swaps | Not Designated as Hedging Instrument | ||
Derivative [Line Items] | ||
Derivative Notional Amounts | 0 | 450 |
Foreign Exchange Forward | Not Designated as Hedging Instrument | ||
Derivative [Line Items] | ||
Derivative Notional Amounts | 463 | 476 |
Foreign Exchange Forward | Designated as Hedging Instrument | ||
Derivative [Line Items] | ||
Derivative Notional Amounts | 385 | 333 |
Commodity Contract | Not Designated as Hedging Instrument | ||
Derivative [Line Items] | ||
Derivative Notional Amounts | 529 | 450 |
Interest Rate Swap | Not Designated as Hedging Instrument | ||
Derivative [Line Items] | ||
Derivative Notional Amounts | $ 2,500 | $ 0 |
Derivatives - Fair Value (Detai
Derivatives - Fair Value (Details) - Recurring - Level 2 - USD ($) $ in Millions | Dec. 31, 2021 | Dec. 31, 2020 |
Interest Rate Contract | Not Designated as Hedging Instrument | Prepaid expenses and other current assets | ||
Derivatives, Fair Value [Line Items] | ||
Derivative asset | $ 2 | $ 0 |
Interest Rate Contract | Not Designated as Hedging Instrument | Other current liabilities | ||
Derivatives, Fair Value [Line Items] | ||
Derivative liability | 0 | 2 |
Interest Rate Contract | Not Designated as Hedging Instrument | Other non-current liabilities | ||
Derivatives, Fair Value [Line Items] | ||
Derivative liability | 5 | 7 |
Interest Rate Contract | Designated as Hedging Instrument | Other current liabilities | ||
Derivatives, Fair Value [Line Items] | ||
Derivative liability | 8 | 0 |
Interest Rate Contract | Designated as Hedging Instrument | Other non-current liabilities | ||
Derivatives, Fair Value [Line Items] | ||
Derivative liability | 128 | 0 |
Foreign Exchange Forward | Not Designated as Hedging Instrument | Prepaid expenses and other current assets | ||
Derivatives, Fair Value [Line Items] | ||
Derivative asset | 3 | 0 |
Foreign Exchange Forward | Not Designated as Hedging Instrument | Other current liabilities | ||
Derivatives, Fair Value [Line Items] | ||
Derivative liability | 2 | 6 |
Foreign Exchange Forward | Not Designated as Hedging Instrument | Other non-current liabilities | ||
Derivatives, Fair Value [Line Items] | ||
Derivative liability | 9 | 9 |
Foreign Exchange Forward | Designated as Hedging Instrument | Other non-current assets | ||
Derivatives, Fair Value [Line Items] | ||
Derivative asset | 1 | 0 |
Foreign Exchange Forward | Designated as Hedging Instrument | Other current liabilities | ||
Derivatives, Fair Value [Line Items] | ||
Derivative liability | 1 | 12 |
Foreign Exchange Forward | Designated as Hedging Instrument | Other Current Assets | ||
Derivatives, Fair Value [Line Items] | ||
Derivative asset | 6 | 0 |
Commodity Contract | Not Designated as Hedging Instrument | Prepaid expenses and other current assets | ||
Derivatives, Fair Value [Line Items] | ||
Derivative asset | 133 | 45 |
Commodity Contract | Not Designated as Hedging Instrument | Other non-current assets | ||
Derivatives, Fair Value [Line Items] | ||
Derivative asset | 2 | 12 |
Commodity Contract | Not Designated as Hedging Instrument | Other current liabilities | ||
Derivatives, Fair Value [Line Items] | ||
Derivative liability | 28 | 5 |
Commodity Contract | Not Designated as Hedging Instrument | Other non-current liabilities | ||
Derivatives, Fair Value [Line Items] | ||
Derivative liability | $ 1 | $ 2 |
Derivatives - Impact on Net Inc
Derivatives - Impact on Net Income (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Commodity Contract | Cost of sales | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Amount of (Gain) Loss Recognized in Income | $ 10 | ||
Commodity Contract | SG&A expenses | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Amount of (Gain) Loss Recognized in Income | 15 | ||
Interest Rate Contract | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Cash Flow Hedge Gain (Loss) to be Reclassified within Twelve Months | $ 2 | ||
Interest Rate Contract | Interest expense | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Amount of (Gain) Loss Recognized in Income | (7) | ||
Foreign Exchange Forward | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Cash Flow Hedge Gain (Loss) to be Reclassified within Twelve Months | (1) | ||
Foreign Exchange Forward | Cost of sales | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Amount of (Gain) Loss Recognized in Income | $ 6 | (5) | |
Not Designated as Hedging Instrument | Commodity Contract | Cost of sales | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Amount of (Gain) Loss Recognized in Income | 148 | 35 | |
Not Designated as Hedging Instrument | Commodity Contract | SG&A expenses | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Amount of (Gain) Loss Recognized in Income | 60 | (22) | |
Not Designated as Hedging Instrument | Interest Rate Contract | Interest expense | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Amount of (Gain) Loss Recognized in Income | 25 | (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 | (4) | ||
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 | 0 | (6) | (18) |
Designated as Hedging Instrument | Interest Rate Contract | Cost of sales | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Derivative, Gain (Loss) on Derivative, Net | 0 | 0 | 0 |
Designated as Hedging Instrument | Foreign Exchange Forward | Cost of sales | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Derivative, Gain (Loss) on Derivative, Net | $ 18 | $ 2 | $ 0 |
Leases (Details)
Leases (Details) - USD ($) $ in Millions | 12 Months Ended | |||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | ||
Operating Leased Assets [Line Items] | ||||
Leases not yet commenced, estimated obligation | $ 202 | |||
Operating Lease, Liability, Current, Statement of Financial Position [Extensible List] | Other current liabilities | Other current liabilities | ||
Lease, Cost [Abstract] | ||||
Operating Lease, Cost | $ 121 | $ 113 | $ 82 | |
Finance Lease, Right-of-Use Asset, Amortization | 63 | 47 | 48 | |
Finance Lease, Interest Expense | 18 | 14 | 15 | |
Variable Lease, Cost | [1] | 31 | 27 | 28 |
Short-term Lease, Cost | 0 | 1 | 5 | |
Sublease Income | 1 | 2 | 3 | |
Lease, Cost | 232 | 200 | 175 | |
Cash Flow, Operating Activities, Lessee [Abstract] | ||||
Operating Lease, Payments | 113 | 103 | 77 | |
Finance Lease, Interest Payment on Liability | 18 | 14 | 15 | |
Cash Flow, Financing Activities, Lessee [Abstract] | ||||
Finance Lease, Principal Payments | 54 | 52 | 38 | |
Right-of-Use Asset Obtained in Exchange for Operating Lease Liability | 293 | 234 | 189 | |
Right-of-Use Asset Obtained in Exchange for Finance Lease Liability | $ 408 | $ 90 | $ 71 | |
Lessee, Operating Lease, Description [Abstract] | ||||
Operating Lease, Weighted Average Discount Rate, Percent | 4.30% | 4.30% | ||
Operating Lease, Weighted Average Remaining Lease Term | 12 years | 12 years | ||
Lessee, Finance Lease, Description [Abstract] | ||||
Finance Lease, Weighted Average Discount Rate, Percent | 3.60% | 4.40% | ||
Finance Lease, Weighted Average Remaining Lease Term | 10 years | 11 years | ||
Operating Lease Liabilities, Payments Due [Abstract] | ||||
Lessee, Operating Lease, Liability, Payments, Due Next Twelve Months | $ 95 | |||
Lessee, Operating Lease, Liability, Payments, Due Year Two | 91 | |||
Lessee, Operating Lease, Liability, Payments, Due Year Three | 86 | |||
Lessee, Operating Lease, Liability, Payments, Due Year Four | 78 | |||
Lessee, Operating Lease, Liability, Payments, Due Year Five | 67 | |||
Lessee, Operating Lease, Liability, Payments, Due after Year Five | 448 | |||
Lessee, Operating Lease, Liability, Payments, Due | 865 | |||
Lessee, Operating Lease, Liability, Undiscounted Excess Amount | 181 | |||
Operating Lease, Liability | 684 | |||
Finance Lease Liabilities, Payments, Due [Abstract] | ||||
Finance Lease, Liability, Payments, Due Next Twelve Months | 106 | |||
Finance Lease, Liability, Payments, Due Year Two | 106 | |||
Finance Lease, Liability, Payments, Due Year Three | 100 | |||
Finance Lease, Liability, Payments, Due Year Four | 95 | |||
Finance Lease, Liability, Payments, Due Year Five | 125 | |||
Finance Lease, Liability, Payments, Due after Year Five | 296 | |||
Finance Lease, Liability, Payments, Due | 828 | |||
Finance Lease, Liability, Undiscounted Excess Amount | 128 | |||
Other current liabilities | ||||
Operating Leased Assets [Line Items] | ||||
Finance Lease, Liability | 700 | |||
Finance Lease Liabilities, Payments, Due [Abstract] | ||||
Finance Lease, Liability | 700 | |||
Other non-current liabilities | ||||
Operating Leased Assets [Line Items] | ||||
Finance Lease, Liability | 700 | |||
Finance Lease Liabilities, Payments, Due [Abstract] | ||||
Finance Lease, Liability | $ 700 | |||
Minimum | ||||
Operating Leased Assets [Line Items] | ||||
Initial lease term | 2 years | |||
Maximum | ||||
Operating Leased Assets [Line Items] | ||||
Initial lease term | 10 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, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 29, 2021 | [1] | Jan. 10, 2020 | Jan. 06, 2020 | [2] | Dec. 23, 2019 | [3] | Dec. 20, 2019 | Dec. 13, 2019 | ||||
Sale Leaseback Transaction [Line Items] | |||||||||||||||
Impairment of Long-Lived Assets Held-for-use | $ 0 | $ 1 | $ 24 | ||||||||||||
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 | ||||||||||||||
Plano Headquarters | |||||||||||||||
Sale Leaseback Transaction [Line Items] | |||||||||||||||
Sale Leaseback Transaction, Net Proceeds, Investing Activities | 49 | ||||||||||||||
Sale Leaseback Transaction, Net Book Value | $ 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 Leaseback Transaction, Net Book Value | $ 8 | ||||||||||||||
Sale and Leaseback Transaction, Gain (Loss), Net | 0 | ||||||||||||||
Impairment of Long-Lived Assets Held-for-use | 12 | ||||||||||||||
Transactions with SPEs with Same Sponsor | |||||||||||||||
Sale Leaseback Transaction [Line Items] | |||||||||||||||
Sale Leaseback Transaction, Net Proceeds, Investing Activities | 102 | [1] | 150 | [2] | 170 | [3] | |||||||||
Sale Leaseback Transaction, Net Book Value | $ 32 | $ 131 | $ 140 | ||||||||||||
Sale and Leaseback Transaction, Gain (Loss), Net | $ 70 | [1] | $ 19 | [2] | $ 30 | [3] | |||||||||
[1] | The sale-leaseback transaction included two manufacturing properties and two distribution properties. | ||||||||||||||
[2] | The sale-leaseback transaction included two manufacturing properties. | ||||||||||||||
[3] | The sale-leaseback transaction included three manufacturing properties. |
Employee Benefit Plans (Details
Employee Benefit Plans (Details) $ in Millions | 12 Months Ended | ||||
Dec. 31, 2022USD ($) | Dec. 31, 2021USD ($) | Dec. 31, 2020USD ($) | Dec. 31, 2019USD ($) | ||
Defined Benefit Plan, Amounts for Asset (Liability) Recognized in Statement of Financial Position [Abstract] | |||||
Non-current liability | $ (40) | $ (38) | |||
Defined Benefit Plan, Plan with Accumulated Benefit Obligation in Excess of Plan Assets [Abstract] | |||||
Aggregate projected benefit obligation | 104 | 87 | |||
Aggregate accumulated benefit obligation | 101 | 84 | |||
Aggregate fair value of plan assets | $ 65 | $ 61 | |||
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 | 2.55% | 3.30% | 3.30% | ||
Weighted average discount rate | 2.85% | 2.55% | |||
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% | 4.00% | ||
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 | $ 215 | $ 228 | $ 226 | ||
Service cost | 4 | 3 | $ 2 | ||
Interest cost | 6 | 7 | 9 | ||
Actuarial losses, net | (9) | 22 | |||
Benefits paid | (5) | (4) | |||
Impact of changes in FX rates | 0 | (1) | |||
Settlements | (9) | (25) | |||
Defined Benefit Plan, Benefit Obligation | 215 | 228 | 226 | ||
Defined Benefit Plan, Change in Fair Value of Plan Assets [Roll Forward] | |||||
Defined Benefit Plan, Plan Assets, Amount | 190 | 203 | 204 | ||
Actual return on plan assets | 1 | 28 | |||
Employer contributions | 0 | 1 | |||
Benefits paid | (5) | (4) | |||
Impact of changes in FX rates | 0 | (1) | |||
Settlements | (9) | (25) | |||
Defined Benefit Plan, Plan Assets, Amount | 190 | 203 | 204 | ||
Defined Benefit Plan, Amounts for Asset (Liability) Recognized in Statement of Financial Position [Abstract] | |||||
Net liability recognized | (25) | (25) | |||
Non-current assets | 14 | 11 | |||
Current liability | (1) | (1) | |||
Non-current liability | (38) | (35) | |||
Defined Benefit Plan, Plan with Accumulated Benefit Obligation in Excess of Plan Assets [Abstract] | |||||
Defined Benefit Plan, Accumulated Benefit Obligation | 195 | 208 | |||
Defined Benefit Plan, Net Periodic Benefit Cost (Credit) [Abstract] | |||||
Service cost | 4 | 3 | 2 | ||
Interest cost | 6 | 7 | 9 | ||
Expected return on assets | (8) | (8) | (9) | ||
Settlements | (1) | (1) | (1) | ||
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 | 2 | ||||
Defined Benefit Plan, Expected Future Benefit Payment [Abstract] | |||||
Defined Benefit Plan, Expected Future Benefit Payment, Next Twelve Months | 12 | ||||
Defined Benefit Plan, Expected Future Benefit Payment, Year Two | 12 | ||||
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 | 61 | ||||
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 | 4 | 8 | |||
Defined Benefit Plan, Plan Assets, Amount | 4 | 8 | |||
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 | [1],[2] | 21 | 22 | ||
Defined Benefit Plan, Plan Assets, Amount | [1],[2] | 21 | 22 | ||
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 | [1],[2] | 11 | 12 | ||
Defined Benefit Plan, Plan Assets, Amount | [1],[2] | $ 11 | $ 12 | ||
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% | 80.00% | ||
Defined Benefit Plan, Plan Assets, Actual Allocation, Percentage | 3.40% | 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 | [3] | 154 | $ 161 | ||
Defined Benefit Plan, Plan Assets, Amount | [3] | $ 154 | $ 161 | ||
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% | 20.00% | ||
Defined Benefit Plan, Plan Assets, Actual Allocation, Percentage | 6.50% | 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 | $ 10 | |||
Defined Benefit Plan, Plan Assets, Amount | 10 | $ 10 | |||
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 | 0 | 1 | |||
Defined Benefit Plan, Plan Assets, Amount | 0 | 1 | |||
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],[2] | 1 | 1 | ||
Defined Benefit Plan, Plan Assets, Amount | [1],[2] | 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 | [1],[2] | 8 | 7 | ||
Defined Benefit Plan, Plan Assets, Amount | [1],[2] | 8 | 7 | ||
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 | [3] | 1 | 1 | ||
Defined Benefit Plan, Plan Assets, Amount | [3] | $ 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 | ||||
[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 domestic and international corporate bonds and U.S. government securities. Investments are provided by the investment managers using a unit price or NAV based on the fair value of the underlying investments. |
Employee Benefit Plans - Fair V
Employee Benefit Plans - Fair Value of Plan Assets (Details) - Pension Plan [Member] | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 |
Fixed income securities | |||
Defined Benefit Plan, Plan Assets, Category [Line Items] | |||
Defined Benefit Plan, Plan Assets, Target Allocation, Percentage | 80.00% | 80.00% | 80.00% |
Defined Benefit Plan, Plan Assets, Actual Allocation, Percentage | 3.40% | 3.40% | 3.10% |
Equity securities | |||
Defined Benefit Plan, Plan Assets, Category [Line Items] | |||
Defined Benefit Plan, Plan Assets, Target Allocation, Percentage | 20.00% | 20.00% | 20.00% |
Defined Benefit Plan, Plan Assets, Actual Allocation, Percentage | 6.50% | 7.40% | 7.50% |
Employee Benefit Plans - Multie
Employee Benefit Plans - Multiemployer Plans (Details) - USD ($) $ in Millions | 12 Months Ended | |||||||
Dec. 31, 2026 | Dec. 31, 2025 | Dec. 31, 2024 | Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Multiemployer Plans [Line Items] | ||||||||
Multiemployer Plan, Employer Contribution, Cost | $ 5 | $ 7 | $ 4 | |||||
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 | 55.00% | |||||||
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 | 14.00% |
Employee Benefit Plans - Define
Employee Benefit Plans - Defined Contribution Plans (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Defined Contribution Plan Disclosures [Line Items] | |||
Defined contribution plans expense | $ 73 | $ 77 | $ 66 |
Marketable Securities, Realized Gain (Loss) | 5 | 8 | $ 8 |
Level 1 | |||
Defined Contribution Plan Disclosures [Line Items] | |||
Debt Securities, Trading, and Equity Securities, FV-NI | $ 43 | $ 41 |
Segments - Schedules of Results
Segments - Schedules of Results (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Segment Results – Income from operations | |||
Net sales | $ 12,683 | $ 11,618 | $ 11,120 |
Income from operations | 2,894 | 2,480 | 2,378 |
Beverage Concentrates | |||
Segment Results – Income from operations | |||
Net sales | 1,486 | 1,325 | 1,414 |
Packaged Beverages | |||
Segment Results – Income from operations | |||
Net sales | 5,882 | 5,363 | 4,945 |
Latin America Beverages | |||
Segment Results – Income from operations | |||
Net sales | 599 | 497 | 528 |
Coffee Systems | |||
Segment Results – Income from operations | |||
Net sales | 4,716 | 4,433 | 4,233 |
Operating Segments | Beverage Concentrates | |||
Segment Results – Income from operations | |||
Net sales | 1,486 | 1,325 | 1,414 |
Income from operations | 1,044 | 932 | 955 |
Operating Segments | Packaged Beverages | |||
Segment Results – Income from operations | |||
Net sales | 5,882 | 5,363 | 4,945 |
Income from operations | 1,010 | 822 | 757 |
Operating Segments | Latin America Beverages | |||
Segment Results – Income from operations | |||
Net sales | 599 | 497 | 528 |
Income from operations | 133 | 105 | 85 |
Operating Segments | Coffee Systems | |||
Segment Results – Income from operations | |||
Net sales | 4,716 | 4,433 | 4,233 |
Income from operations | 1,318 | 1,268 | 1,219 |
Corporate Unallocated | |||
Segment Results – Income from operations | |||
Income from operations | $ (611) | $ (647) | $ (638) |
Segments - Assets by Segment (D
Segments - Assets by Segment (Details) - USD ($) $ in Millions | Dec. 31, 2021 | Dec. 31, 2020 |
Segment Reporting Information [Line Items] | ||
Identifiable operating assets | $ 50,568 | $ 49,691 |
Investments in unconsolidated affiliates | 30 | 88 |
Total assets | 50,598 | 49,779 |
Property, plant and equipment, net | 2,494 | 2,212 |
U.S. | ||
Segment Reporting Information [Line Items] | ||
Property, plant and equipment, net | 2,084 | 1,893 |
International | ||
Segment Reporting Information [Line Items] | ||
Property, plant and equipment, net | 410 | 319 |
Operating Segments | ||
Segment Reporting Information [Line Items] | ||
Identifiable operating assets | 49,653 | 49,173 |
Operating Segments | Beverage Concentrates | ||
Segment Reporting Information [Line Items] | ||
Identifiable operating assets | 20,674 | 20,575 |
Operating Segments | Packaged Beverages | ||
Segment Reporting Information [Line Items] | ||
Identifiable operating assets | 11,819 | 11,540 |
Operating Segments | Latin America Beverages | ||
Segment Reporting Information [Line Items] | ||
Identifiable operating assets | 1,763 | 1,763 |
Operating Segments | Coffee Systems | ||
Segment Reporting Information [Line Items] | ||
Identifiable operating assets | 15,397 | 15,295 |
Corporate Unallocated | ||
Segment Reporting Information [Line Items] | ||
Identifiable operating assets | $ 915 | $ 518 |
Segments - Revenue by Geography
Segments - Revenue by Geography (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Segment Reporting Information [Line Items] | |||
Net sales | $ 12,683 | $ 11,618 | $ 11,120 |
U.S. | |||
Segment Reporting Information [Line Items] | |||
Net sales | 11,267 | 10,318 | 9,843 |
International | |||
Segment Reporting Information [Line Items] | |||
Net sales | $ 1,416 | $ 1,300 | $ 1,277 |
Segments - Major Customers (Det
Segments - Major Customers (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Walmart [Member] | |||
Revenue, Major Customer [Line Items] | |||
Revenues | $ 1,989 | $ 1,782 | $ 1,483 |
Earnings Per Share (Details)
Earnings Per Share (Details) - USD ($) $ / shares in Units, $ in Millions | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Basic EPS: | |||
Net income | $ 2,146 | $ 1,325 | $ 1,254 |
Weighted average common shares outstanding (in shares) | 1,415,700,000 | 1,407,200,000 | 1,406,700,000 |
Earnings per common share - basic (in dollars per share) | $ 1.52 | $ 0.94 | $ 0.89 |
Diluted EPS: | |||
Net income | $ 2,146 | $ 1,325 | $ 1,254 |
Weighted average common shares outstanding (in shares) | 1,415,700,000 | 1,407,200,000 | 1,406,700,000 |
Effect of dilutive securities: | |||
Effect of dilutive securities (in shares) | 12,200,000 | 14,900,000 | 12,400,000 |
Weighted average common shares outstanding and common stock equivalents (in shares) | 1,427,900,000 | 1,422,100,000 | 1,419,100,000 |
Earnings per common share - diluted (in dollars per share) | $ 1.50 | $ 0.93 | $ 0.88 |
Stock Based Compensation (Detai
Stock Based Compensation (Details) - USD ($) $ / shares in Units, $ in Millions | Jul. 09, 2018 | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2019 | Dec. 31, 2021 |
Employee Service Share-based Compensation, Aggregate Disclosures [Abstract] | ||||||
Total stock-based compensation expense | $ 88 | $ 85 | $ 64 | |||
Income tax benefit recognized in the Statements of Income | (14) | (13) | (11) | |||
Stock-based compensation expense, net of tax | $ 74 | $ 72 | $ 53 | |||
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 | 27,425,720 | ||||
Stock Options | ||||||
Balance as of beginning of the period (in shares) | 195,572 | |||||
Granted (in shares) | 0 | |||||
Exercised (in shares) | (2,000) | |||||
Balance as of end of the period (in shares) | 193,572 | 195,572 | 193,572 | |||
Exercisable (in shares) | 193,572 | 193,572 | ||||
Weighted Average Grant Date Fair Value | ||||||
Balance as of the beginning of the period (in dollars per share) | $ 12.11 | |||||
Granted (in dollars per share) | 0 | |||||
Exercised (in dollars per share) | 14.76 | |||||
Balance as of the end of the period (in dollars per share) | 12.09 | $ 12.11 | $ 12.09 | |||
Exercisable (in dollars per share) | $ 12.09 | $ 12.09 | ||||
Weighted Average Remaining Contractual Term (Years) | ||||||
Outstanding | 3 years 8 months 12 days | 4 years 8 months 12 days | ||||
Exercisable | 3 years 8 months 12 days | |||||
Aggregate Intrinsic Value (in millions) | ||||||
Exercised | $ 0 | |||||
Outstanding | 5 | $ 4 | $ 5 | |||
Exercisable | $ 5 | $ 5 | ||||
Restricted Stock Units (RSUs) | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Award vesting period | 4 years 6 months | 5 years | 5 years | |||
RSUs and PSUs | ||||||
Outstanding as of beginning of the period (in shares) | 26,688,304 | |||||
Granted (in shares) | 4,673,122 | |||||
Vested and released (in shares) | (9,892,897) | |||||
Forfeited (in shares) | (2,660,038) | |||||
Outstanding as of end of the period (in shares) | 18,808,491 | 26,688,304 | 18,808,491 | |||
Weighted Average Grant Date Fair Value | ||||||
Outstanding as of the beginning of the period (in dollars per share) | $ 19.66 | |||||
Granted (in dollars per share) | 28.83 | $ 24.91 | $ 26.55 | |||
Vested and released (in dollars per share) | 10.89 | |||||
Forfeited (in dollars per share) | 25.38 | |||||
Outstanding as of the end of the period (in dollars per share) | $ 25.74 | $ 19.66 | $ 25.74 | |||
Weighted Average Remaining Contractual Term (Years) | ||||||
Outstanding | 2 years 2 months 12 days | 2 years | ||||
Aggregate Intrinsic Value (in millions) | ||||||
Outstanding as of the beginning of the period | $ 854 | |||||
Vested and released | 333 | $ 3 | $ 1 | |||
Outstanding as of the end of the period | 693 | $ 854 | $ 693 | |||
Unrecognized compensation costs related to nonvested awards | $ 287 | $ 287 | ||||
Weighted average recognition period of unrecognized compensation costs | 3 years 3 months 18 days | |||||
Restricted Stock Units (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 | |||||
Restricted Stock Units (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) | 651,042 | |||||
Vested and released (in shares) | 0 | |||||
Forfeited (in shares) | 0 | |||||
Outstanding as of end of the period (in shares) | 651,042 | 651,042 | 651,042 | |||
Weighted Average Grant Date Fair Value | ||||||
Outstanding as of the beginning of the period (in dollars per share) | $ 28.80 | |||||
Granted (in dollars per share) | 0 | |||||
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 | $ 28.80 | $ 28.80 | |||
Weighted Average Remaining Contractual Term (Years) | ||||||
Outstanding | 1 year 1 month 6 days | 2 years | ||||
Aggregate Intrinsic Value (in millions) | ||||||
Outstanding as of the beginning of the period | $ 21 | |||||
Outstanding as of the end of the period | 24 | $ 21 | $ 24 | |||
Unrecognized compensation costs related to nonvested awards | $ 13 | $ 13 | ||||
Weighted average recognition period of unrecognized compensation costs | 2 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 |
Revenue Recognition (Details)
Revenue Recognition (Details) - USD ($) $ in Millions | 12 Months Ended | ||||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |||
Disaggregation of Revenue [Line Items] | |||||
Net sales | $ 12,683 | $ 11,618 | $ 11,120 | ||
CSD | |||||
Disaggregation of Revenue [Line Items] | |||||
Net sales | [1] | 4,723 | 4,154 | 3,984 | |
NCB | |||||
Disaggregation of Revenue [Line Items] | |||||
Net sales | [1] | 2,791 | 2,622 | 2,476 | |
Pods | |||||
Disaggregation of Revenue [Line Items] | |||||
Net sales | [2] | 3,546 | 3,369 | 3,293 | |
Appliances | |||||
Disaggregation of Revenue [Line Items] | |||||
Net sales | 907 | 850 | 723 | ||
Other | |||||
Disaggregation of Revenue [Line Items] | |||||
Net sales | 716 | 623 | 644 | ||
Beverage Concentrates | |||||
Disaggregation of Revenue [Line Items] | |||||
Net sales | 1,486 | 1,325 | 1,414 | ||
Beverage Concentrates | CSD | |||||
Disaggregation of Revenue [Line Items] | |||||
Net sales | [1] | 1,463 | 1,304 | 1,385 | |
Beverage Concentrates | NCB | |||||
Disaggregation of Revenue [Line Items] | |||||
Net sales | [1] | 11 | 10 | 13 | |
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 | 12 | 11 | 16 | ||
Packaged Beverages | |||||
Disaggregation of Revenue [Line Items] | |||||
Net sales | 5,882 | 5,363 | 4,945 | ||
Packaged Beverages | CSD | |||||
Disaggregation of Revenue [Line Items] | |||||
Net sales | [1] | 2,825 | 2,489 | 2,219 | |
Packaged Beverages | NCB | |||||
Disaggregation of Revenue [Line Items] | |||||
Net sales | [1] | 2,617 | 2,477 | 2,317 | |
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 | 440 | 397 | 409 | ||
Latin America Beverages | |||||
Disaggregation of Revenue [Line Items] | |||||
Net sales | 599 | 497 | 528 | ||
Latin America Beverages | CSD | |||||
Disaggregation of Revenue [Line Items] | |||||
Net sales | [1] | 435 | 361 | 380 | |
Latin America Beverages | NCB | |||||
Disaggregation of Revenue [Line Items] | |||||
Net sales | [1] | 163 | 135 | 146 | |
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 | 1 | 2 | ||
Coffee Systems | |||||
Disaggregation of Revenue [Line Items] | |||||
Net sales | 4,716 | 4,433 | 4,233 | ||
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 | [2] | 3,546 | 3,369 | 3,293 | |
Coffee Systems | Appliances | |||||
Disaggregation of Revenue [Line Items] | |||||
Net sales | 907 | 850 | 723 | ||
Coffee Systems | Other | |||||
Disaggregation of Revenue [Line Items] | |||||
Net sales | $ 263 | $ 214 | $ 217 | ||
[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. |
Income Taxes - Income Before Pr
Income Taxes - Income Before Provision for Income Taxes by Location (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Income Tax Disclosure [Abstract] | |||
U.S. | $ 2,353 | $ 1,367 | $ 1,389 |
International | 445 | 386 | 305 |
Income before provision for income taxes | $ 2,798 | $ 1,753 | $ 1,694 |
Income Taxes - Components of In
Income Taxes - Components of Income Tax Provision (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Income Tax Disclosure [Abstract] | |||
Federal | $ 386 | $ 297 | $ 303 |
State | 136 | 103 | 98 |
International | 100 | 79 | 62 |
Total current provision | 622 | 479 | 463 |
Federal | 41 | (31) | (31) |
State | (8) | (6) | 1 |
International | (2) | (14) | 7 |
Total deferred provision | 31 | (51) | (23) |
Total provision for income taxes | $ 653 | $ 428 | $ 440 |
Income Taxes - Reconciliation o
Income Taxes - Reconciliation of Provision for Income Taxes (Details) | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Percent | |||
Statutory federal income tax | 21.00% | 21.00% | 21.00% |
State income taxes, net | 3.80% | 4.00% | 3.70% |
Impact of non-U.S. operations | 0.10% | 0.20% | 0.30% |
Tax credits | (0.80%) | (1.30%) | (0.90%) |
Valuation allowance | (0.10%) | (1.10%) | 0.00% |
U.S. taxation of foreign earnings | 0.70% | 1.60% | 1.50% |
Deferred rate change | (0.70%) | 0.50% | (0.30%) |
Uncertain tax positions | 0.00% | (1.30%) | 0.00% |
U.S. federal provision to return | (0.30%) | 0.10% | (0.60%) |
Excess tax deductions on stock-based compensation | (1.00%) | 0.00% | 0.00% |
Other | 0.60% | 0.70% | 1.30% |
Total income tax provision | 23.30% | 24.40% | 26.00% |
Income Taxes - Components of De
Income Taxes - Components of Deferred Tax Assets and Liabilities (Details) - USD ($) $ in Millions | Dec. 31, 2021 | Dec. 31, 2020 |
Components of Deferred Tax Assets [Abstract] | ||
Operating lease liability | $ 166 | $ 161 |
Net operating losses carryforwards | 43 | 46 |
Tax credit carryforwards | 49 | 54 |
Accrued expenses | 125 | 153 |
Share-based compensation | 32 | 36 |
Multi-year upfront payments | 13 | 15 |
Equity method investments | 50 | 29 |
Other | 41 | 27 |
Total deferred tax assets | 519 | 521 |
Valuation allowances | (48) | (51) |
Total deferred tax assets, net of valuation allowances | 471 | 470 |
Components of Deferred Tax Liabilities [Abstract] | ||
Brands, trade names and other intangible assets | (5,909) | (5,916) |
Property, plant and equipment | (314) | (293) |
Derivative instruments | (18) | (38) |
Right of use assets | (164) | (159) |
Other | (10) | (12) |
Total deferred tax liabilities | (6,415) | (6,418) |
Net deferred tax liabilities | (5,944) | (5,948) |
Deferred Tax Assets, Operating Loss Carryforwards, Foreign | $ 39 | $ 45 |
Income Taxes - Additional Infor
Income Taxes - Additional Information (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Operating Loss Carryforwards [Line Items] | |||
Net operating losses carryforwards | $ 43 | $ 46 | |
Tax credit carryforwards | 49 | 54 | |
Undistributed Earnings, Basic | 295 | 130 | |
Income Tax Holiday, Aggregate Dollar Amount | 6 | 6 | |
Income Tax Examination, Penalties and Interest Expense | 1 | 8 | $ (3) |
Income Tax Examination, Penalties and Interest Accrued | 2 | $ 1 | |
Unrecognized Tax Benefits that Would Impact Effective Tax Rate | 9 | ||
Domestic Tax Authority [Member] | |||
Operating Loss Carryforwards [Line Items] | |||
Tax credit carryforwards | 48 | ||
Valuation Allowance, Deferred Tax Asset, Increase (Decrease), Amount | 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 | 38 | ||
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, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Reconciliation of Unrecognized Tax Benefits, Excluding Amounts Pertaining to Examined Tax Returns [Roll Forward] | |||
Balance, beginning of the period | $ 18 | $ 43 | $ 50 |
Increases related to tax positions taken during the current year | 2 | 2 | 2 |
Unrecognized Tax Benefits, Decrease Resulting from Prior Period Tax Positions | (3) | ||
Increases related to tax positions during the prior year | 2 | 3 | |
Decreases related to settlements with taxing authorities | (1) | (8) | (8) |
Decreases related to lapse of applicable statute of limitations | (4) | (21) | (4) |
Balance, end of the period | $ 12 | $ 18 | $ 43 |
Acquisitions and Investments _3
Acquisitions and Investments in Unconsolidated Subsidiaries - Revive (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Noncontrolling Interest [Line Items] | |||
Payments to Acquire Businesses, Gross | $ 0 | $ 0 | $ 8,000,000 |
Revive [Member] | |||
Noncontrolling Interest [Line Items] | |||
Noncontrolling Interest, Ownership Percentage by Parent | 66.40% | ||
Payments to Acquire Businesses, Gross | $ 1 | ||
Additional Paid-In Capital | Revive [Member] | |||
Noncontrolling Interest [Line Items] | |||
Noncontrolling Interest, Increase from Business Combination | $ 3,000,000 |
Acquisitions and Investments _4
Acquisitions and Investments in Unconsolidated Subsidiaries - Aggregate Immaterial Acquisitions (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Business Acquisition [Line Items] | |||
Acquisitions of businesses | $ 0 | $ 0 | $ 8 |
Series of Individually Immaterial Business Acquisitions [Member] | |||
Business Acquisition [Line Items] | |||
Acquisitions of businesses | $ 8 |
Acquisitions and Investments _5
Acquisitions and Investments in Unconsolidated Subsidiaries - Investments In Unconsolidated Subsidiaries (Details) - USD ($) $ in Millions | 12 Months Ended | ||||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | Nov. 01, 2021 | Oct. 31, 2021 | |
Schedule of Equity Method Investments [Line Items] | |||||
Investments in unconsolidated affiliates | $ 30 | $ 88 | |||
Gain on sale of equity method investment | 524 | 0 | $ 0 | ||
Investments in unconsolidated subsidiaries, proceeds | 578 | 0 | $ 0 | ||
Holdback liability | $ 0 | 15 | |||
Coca-Cola | |||||
Schedule of Equity Method Investments [Line Items] | |||||
Payments of Third Parties to Acquire Businesses | $ 5,600 | ||||
Third Party's Ownership Interest in Equity Method Investment | 85.00% | ||||
BodyArmor | |||||
Schedule of Equity Method Investments [Line Items] | |||||
Ownership percentage | 0.00% | 10.60% | 12.50% | ||
Investments in unconsolidated affiliates | $ 0 | 51 | $ 52 | ||
Gain on sale of equity method investment | 524 | ||||
Investments in unconsolidated subsidiaries, proceeds | $ 576 | ||||
Holdback liability | $ 105 | ||||
Bedford | |||||
Schedule of Equity Method Investments [Line Items] | |||||
Ownership percentage | 30.00% | ||||
Investments in unconsolidated affiliates | $ 0 | 0 | |||
Dyla LLC | |||||
Schedule of Equity Method Investments [Line Items] | |||||
Ownership percentage | 12.40% | ||||
Investments in unconsolidated affiliates | $ 12 | 12 | |||
Force Holdings LLC | |||||
Schedule of Equity Method Investments [Line Items] | |||||
Ownership percentage | 33.30% | ||||
Investments in unconsolidated affiliates | $ 5 | 5 | |||
Beverage startup companies(3) | |||||
Schedule of Equity Method Investments [Line Items] | |||||
Investments in unconsolidated affiliates | 8 | 15 | |||
Other | |||||
Schedule of Equity Method Investments [Line Items] | |||||
Investments in unconsolidated affiliates | $ 5 | $ 5 |
Acquisitions and Investments _6
Acquisitions and Investments in Unconsolidated Subsidiaries - Impairment (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Schedule of Equity Method Investments [Line Items] | |||
Equity Method Investment, Other than Temporary Impairment | $ 17 | $ 102 | $ 0 |
LifeFuels | |||
Schedule of Equity Method Investments [Line Items] | |||
Equity Method Investment, Other than Temporary Impairment | $ 16 |
Acquisitions and Investments _7
Acquisitions and Investments in Unconsolidated Affiliates - Bedford (Details) - USD ($) $ in Millions | 12 Months Ended | ||||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | Mar. 31, 2020 | Dec. 31, 2018 | |
Schedule of Equity Method Investments [Line Items] | |||||
Equity Method Investments | $ 30 | $ 88 | |||
Equity Method Investment, Other than Temporary Impairment | $ 17 | 102 | $ 0 | ||
Bedford | |||||
Schedule of Equity Method Investments [Line Items] | |||||
Equity Method Investment, Other than Temporary Impairment | $ 31 | ||||
Bedford | Bedford 2017 Note | |||||
Schedule of Equity Method Investments [Line Items] | |||||
Outstanding receivables, related party | $ 55 | $ 51 | |||
Line of credit receivable, interest rate | 8.10% | ||||
Bedford | Bedford July 2021 Note [Member] | |||||
Schedule of Equity Method Investments [Line Items] | |||||
Outstanding receivables, related party | $ 15 | ||||
Line of credit receivable, interest rate | 0.12% | ||||
Bedford | Bedford November 2021 Note | |||||
Schedule of Equity Method Investments [Line Items] | |||||
Outstanding receivables, related party | $ 2 | ||||
Line of credit receivable, interest rate | 0.33% | ||||
Bedford | Bedford Wind-Down Credit Agreement | |||||
Schedule of Equity Method Investments [Line Items] | |||||
Outstanding receivables, related party | $ 68 |
Accumulated Other Comprehensi_3
Accumulated Other Comprehensive Income (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
AOCI Attributable to Parent, Net of Tax [Roll Forward] | |||
Total equity at beginning of period | $ 23,829 | $ 23,257 | $ 22,533 |
Net current period other comprehensive loss | (103) | (27) | 234 |
Total equity at end of period | 24,972 | 23,829 | 23,257 |
Accumulated Other Comprehensive Income (Loss) | |||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | |||
Total equity at beginning of period | 77 | 104 | (130) |
OCI before reclassifications | (116) | (30) | 235 |
Amounts reclassified from AOCI | 13 | 3 | (1) |
Net current period other comprehensive loss | (103) | (27) | 234 |
Total equity at end of period | (26) | 77 | 104 |
Accumulated Foreign Currency Adjustment Attributable to Parent [Member] | |||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | |||
Total equity at beginning of period | 95 | 104 | (126) |
OCI before reclassifications | (14) | (9) | 230 |
Amounts reclassified from AOCI | 0 | 0 | 0 |
Net current period other comprehensive loss | (14) | (9) | 230 |
Total equity at end of period | 81 | 95 | 104 |
Accumulated Defined Benefit Plans Adjustment Attributable to Parent [Member] | |||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | |||
Total equity at beginning of period | (4) | 0 | (4) |
OCI before reclassifications | 0 | (5) | 5 |
Amounts reclassified from AOCI | 0 | 1 | (1) |
Net current period other comprehensive loss | 0 | (4) | 4 |
Total equity at end of period | (4) | (4) | 0 |
Reclassification from AOCI, Current Period, before Tax, Attributable to Parent | 0 | (1) | 1 |
Reclassification from AOCI, Current Period, Tax | 0 | 0 | 0 |
Accumulated Gain (Loss), Net, Cash Flow Hedge, Parent | |||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | |||
Total equity at beginning of period | (14) | 0 | 0 |
OCI before reclassifications | (102) | (16) | 0 |
Amounts reclassified from AOCI | 13 | 2 | 0 |
Net current period other comprehensive loss | (89) | (14) | 0 |
Total equity at end of period | (103) | (14) | 0 |
Reclassification from AOCI, Current Period, before Tax, Attributable to Parent | 18 | 2 | 0 |
Reclassification from AOCI, Current Period, Tax | (5) | 0 | 0 |
Accumulated Gain (Loss), Net, Cash Flow Hedge, Parent | Interest Rate Contract | |||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | |||
Reclassification from AOCI, Current Period, before Tax, Attributable to Parent | 0 | 0 | 0 |
Accumulated Gain (Loss), Net, Cash Flow Hedge, Parent | Foreign Exchange Forward | |||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | |||
Reclassification from AOCI, Current Period, before Tax, Attributable to Parent | $ 18 | $ 2 | $ 0 |
Property, Plant and Equipment_3
Property, Plant and Equipment (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Property, Plant and Equipment [Line Items] | |||
Land | $ 50 | $ 54 | |
Buildings and improvements | 793 | 520 | |
Machinery and equipment | 2,369 | 1,870 | |
Cold drink equipment | 89 | 80 | |
Software | 404 | 315 | |
Construction-in-progress | 138 | 393 | |
Gross property, plant and equipment | 3,843 | 3,232 | |
Less: accumulated depreciation and amortization | (1,349) | (1,020) | |
Net property, plant and equipment | 2,494 | 2,212 | |
Depreciation expense | 410 | 362 | $ 358 |
Cost of sales | |||
Property, Plant and Equipment [Line Items] | |||
Depreciation expense | 233 | 215 | 199 |
Selling, General and Administrative Expenses [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Depreciation expense | $ 177 | $ 147 | $ 159 |
Other Financial Information (De
Other Financial Information (Details) - USD ($) $ in Millions | Oct. 25, 2021 | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 |
Cash, Cash Equivalents, Restricted Cash and Restricted Cash Equivalents [Abstract] | |||||
Cash and cash equivalents | $ 567 | $ 240 | |||
Restricted cash and restricted cash equivalents | 1 | 15 | |||
Total cash, cash equivalents, restricted cash and restricted cash equivalents shown in the Consolidated Statement of Cash Flows | 568 | 255 | $ 111 | $ 139 | |
Inventories: | |||||
Inventory, Raw Materials, Gross | 330 | 260 | |||
Inventory, Work in Process, Gross | 6 | 6 | |||
Inventory, Finished Goods, Gross | 577 | 520 | |||
Inventory, Gross | 913 | 786 | |||
Inventory Valuation Reserves | (19) | (24) | |||
Inventories | 894 | 762 | |||
Prepaid expenses and other current assets: | |||||
Other receivables | 112 | 85 | |||
Customer incentive programs | 21 | 34 | |||
Derivative instruments | 144 | 45 | |||
Prepaid marketing | 12 | 15 | |||
Spare parts | 72 | 55 | |||
Assets held for sale | 0 | 2 | |||
Income tax receivable | 14 | 11 | |||
Other | 72 | 76 | |||
Prepaid expenses and other current assets | 447 | 323 | |||
Other non-current assets: | |||||
Customer incentive programs | 59 | 70 | |||
Marketable securities - trading | 58 | 41 | |||
Operating lease right-of-use assets | 673 | 645 | |||
Derivative instruments | 3 | 12 | |||
Equity securities without readily determinable fair values | 1 | 1 | |||
Other | 143 | 125 | |||
Total other non-current assets | 937 | 894 | |||
Accrued expenses: | |||||
Customer rebates & incentives | 446 | 382 | |||
Accrued compensation | 227 | 215 | |||
Insurance reserve | 33 | 35 | |||
Interest accrual | 55 | 57 | |||
Accrued professional fees | 19 | 21 | |||
Other accrued expenses | 330 | 330 | |||
Total accrued expenses | 1,110 | 1,040 | |||
Other current liabilities: | |||||
Dividends payable | 265 | 212 | |||
Income taxes payable | 144 | 39 | |||
Operating Lease, Liability, Current | 76 | 72 | |||
Finance Lease, Liability, Current | 79 | 44 | |||
Derivative instruments | 39 | 25 | |||
Holdback liability | 0 | 15 | |||
Other | 10 | 9 | |||
Total other current liabilities | 613 | 416 | |||
Other non-current liabilities: | |||||
Long-term pension and postretirement liability | 40 | 38 | |||
Insurance reserves | 75 | 72 | |||
Operating Lease, Liability, Noncurrent | 608 | 580 | |||
Finance Lease, Liability, Noncurrent | 621 | 298 | |||
Derivative instruments | 143 | 18 | |||
Deferred compensation liability | 43 | 41 | |||
Other | 47 | 72 | |||
Other non-current liabilities | $ 1,577 | $ 1,119 | |||
Other Financial Information [Line Items] | |||||
Operating Lease, Liability, Current, Statement of Financial Position [Extensible List] | Total other current liabilities | Total other current liabilities | |||
Finance Lease, Liability, Current | $ 79 | $ 44 | |||
Operating Lease, Liability, Noncurrent, Statement of Financial Position [Extensible List] | Other non-current liabilities | Other non-current liabilities | |||
Unrealized Gain (Loss) on Investments | $ 5 | ||||
Payments to Acquire Investments | $ 20 | ||||
Finance Lease, Liability, Current, Statement of Financial Position [Extensible Enumeration] | Total other current liabilities | Total other current liabilities | |||
Finance Lease, Liability, Noncurrent, Statement of Financial Position [Extensible Enumeration] | Other non-current liabilities | Other non-current liabilities | |||
Operating lease right-of-use assets | $ 673 | $ 645 | |||
Finance Lease, Right-of-Use Asset, Statement of Financial Position [Extensible Enumeration] | Total other non-current assets | Total other non-current assets | |||
Suppliers Utilizing Third Party Services Sold Through To Financial Institutions [Member] | |||||
Other Financial Information [Line Items] | |||||
Accounts payable | $ 3,194 | $ 2,578 |
Commitments and Contingencies -
Commitments and Contingencies - Litigation (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Loss Contingencies [Line Items] | ||
Loss Contingency Accrual | $ 14 | $ 32 |
Antitrust Litigation [Member] | ||
Loss Contingencies [Line Items] | ||
Litigation Settlement, Amount Awarded to Other Party | $ 31 | |
Loss Contingency, Damages Sought, Value | $ 5,000 |
Commitments and Contingencies_2
Commitments and Contingencies - Product Warranties (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Movement in Standard Product Warranty Accrual [Roll Forward] | ||
Balance as of beginning of the period | $ 10 | $ 8 |
Accruals for warranties issued | 21 | 15 |
Settlements | (18) | (13) |
Balance as of end of the period | $ 13 | $ 10 |
Transactions with Variable In_3
Transactions with Variable Interest Entities - Leasing Arrangements (Details) - USD ($) $ in Millions | Dec. 31, 2021 | Dec. 31, 2020 | ||
Variable Interest Entity [Line Items] | ||||
Assets, Current | $ 3,057 | $ 2,388 | ||
Liabilities, Current | 6,485 | 7,694 | ||
Variable Interest Entity, Not Primary Beneficiary | ||||
Variable Interest Entity [Line Items] | ||||
Assets, Current | 19 | [1] | 8 | [2] |
Assets, Noncurrent | 312 | [1] | 159 | [2] |
Liabilities, Current | 13 | [1] | 9 | [2] |
Liabilities, Noncurrent | 323 | [1] | 155 | [2] |
Variable Interest Entity, Not Primary Beneficiary | Leasing Arrangements [Member] | ||||
Variable Interest Entity [Line Items] | ||||
Variable Interest Entity, Reporting Entity Involvement, Maximum Loss Exposure, Amount | $ 549 | $ 249 | ||
[1] | The leasing agreements included as of December 31, 2021 include seven manufacturing sites, two distribution centers and our Frisco, Texas headquarters. | |||
[2] | The leasing agreements included as of December 31, 2020 include five manufacturing sites. |
Transactions with Variable In_4
Transactions with Variable Interest Entities - Licensing Arrangement (Details) $ in Millions | Dec. 31, 2021USD ($) |
Variable Interest Entity [Line Items] | |
Fixed fee service commitments | $ 108 |
2022 | 8 |
2023 | 8 |
2024 | 8 |
2025 | 8 |
2026 | 8 |
Variable Interest Entity, Not Primary Beneficiary | Licensing Arrangements [Member] | |
Variable Interest Entity [Line Items] | |
Variable Interest Entity, Reporting Entity Involvement, Maximum Loss Exposure, Amount | $ 142 |
Related Parties (Details)
Related Parties (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Related Party Transactions [Abstract] | |||
Related party trade accounts receivables, net | $ 17 | $ 18 | |
Accounts payables, related parties | 7 | 13 | |
Receipts from related parties | 113 | 112 | $ 93 |
Payments to related parties | $ 67 | $ 73 | $ 57 |
JAB Ownership equity method ownership interest in KDP | 33.00% |
Subsequent Events (Details)
Subsequent Events (Details) - USD ($) $ in Millions | Feb. 23, 2022 | Jan. 24, 2022 | Jan. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Subsequent Event [Line Items] | |||||||
Investments in unconsolidated subsidiaries, proceeds | $ 578 | $ 0 | $ 0 | ||||
Loss on early extinguishment of debt | 105 | $ 4 | $ 11 | ||||
Revolving Credit Facility | |||||||
Subsequent Event [Line Items] | |||||||
Maximum borrowing capacity | [1] | $ 2,400 | |||||
Subsequent Event [Member] | |||||||
Subsequent Event [Line Items] | |||||||
Litigation Settlement, Amount Awarded from Other Party | $ 300 | ||||||
CashProceedsFromSettlementsCombinationOfOperatingAndInvestingActivities | 350 | ||||||
Investments in unconsolidated subsidiaries, proceeds | $ 50 | ||||||
Loss on early extinguishment of debt | $ 45 | ||||||
Subsequent Event [Member] | Revolving Credit Facility | |||||||
Subsequent Event [Line Items] | |||||||
Maximum borrowing capacity | $ 4,000 | ||||||
Subsequent Event [Member] | Revolving Credit Facility | Secured Overnight Financing Rate (SOFR) Overnight Index Swap Rate | Minimum | |||||||
Subsequent Event [Line Items] | |||||||
Basis spread on variable rate | 0.875% | ||||||
Subsequent Event [Member] | Revolving Credit Facility | Secured Overnight Financing Rate (SOFR) Overnight Index Swap Rate | Maximum | |||||||
Subsequent Event [Line Items] | |||||||
Basis spread on variable rate | 1.50% | ||||||
Subsequent Event [Member] | Revolving Credit Facility | Base Rate | Minimum | |||||||
Subsequent Event [Line Items] | |||||||
Basis spread on variable rate | 0.00% | ||||||
Subsequent Event [Member] | Revolving Credit Facility | Base Rate | Maximum | |||||||
Subsequent Event [Line Items] | |||||||
Basis spread on variable rate | 0.50% | ||||||
[1] | The KDP Revolver has $200 million letters of credit available, none of which were utilized as of December 31, 2021. |