Company Achieves Guidance for 2022
KDP Guides to 5% Constant Currency Net Sales
Growth and 6-7% Adjusted Diluted EPS Growth in 2023
BURLINGTON, Mass. and FRISCO, Texas, Feb. 23,
2023 /PRNewswire/ -- Keurig Dr Pepper Inc. (NASDAQ:
KDP) today reported results for the fourth quarter and full year
ended December 31, 2022. The
Company also provided guidance for constant currency net sales
growth of 5% and Adjusted diluted EPS growth of 6% to 7% in
2023.
|
Reported GAAP Basis
|
Adjusted Basis1
|
|
|
|
|
|
Q4
|
FY 2022
|
Q4
|
FY 2022
|
Net Sales
% vs Prior Year
|
$3.80 bn
+12.1%
|
$14.06 bn
+10.8%
|
$3.80 bn
+12.4%
|
$14.06 bn
+11.1%
|
Diluted EPS
% vs Prior Year
|
$0.32
(45.8)%
|
$1.01
(32.7)%
|
$0.50
+11.1%
|
$1.68
+5.0%
|
|
|
|
|
|
|
|
Full-year 2022 highlights:
- Drove double-digit net sales growth of 11%, significantly ahead
of the Company's initial guidance of mid-single-digit growth and in
line with its guidance update in the second quarter.
- Delivered Adjusted diluted EPS growth of 5%, in line with the
Company's mid-single-digit guidance.
- Grew market share in Cold Beverages in categories representing
92% of the Company's U.S. retail sales base.
- Expanded the Keurig brewing system to 38 million U.S.
households, a 10 million household increase since 2018.
- Expanded the Company's presence in the strategically compelling
energy and non-alcohol beer and cocktail categories through unique
partnerships and disciplined investments, such as the strategic
partnership with Nutrabolt announced in the fourth quarter, which
included a long-term sales and distribution agreement for C4 Energy
drinks.
- Returned $1.5 billion to
shareholders through dividends, including a 6.7% increase in KDP's
quarterly dividend, and the opportunistic repurchase of 10.6
million shares.
- Ended the year with a strong balance sheet and reduced
management leverage ratio of 2.8x.
Commenting on the announcement, Chairman and CEO Bob Gamgort stated, "We accelerated our revenue
growth for the fifth consecutive year, delivering 12% growth in the
fourth quarter and 11% growth for the full year. Continued
brand strength across our portfolio enabled modest elasticities in
an environment marked by significant pricing. As we look to
2023, we expect mid-single-digit revenue growth, as the rate of
pricing moderates, and enhanced gross margins, as the relationship
between inflation and pricing improves."
Gamgort continued, "In 2022 we made multiple strategic
investments in new platforms and categories through innovation,
partnerships and equity investments that support our vision of a
"Modern Beverage Company" and provide fuel for future growth.
Further, we continued to enhance our positive impact on all
stakeholders through continued achievement of our ambitious
'Drink Well. Do Good.' corporate responsibility
commitments."
_________________________
1 Adjusted
financial metrics presented in this release are non-GAAP and with
growth rates presented on a constant currency basis. See
reconciliations of GAAP results to Adjusted results on a constant
currency basis in the accompanying tables.
|
|
2022 Full Year Consolidated Results
Net sales for the
full year of 2022 increased 10.8% to $14.06
billion, compared to $12.68
billion in the year-ago period and, on a constant currency
basis, net sales advanced 11.1%. Driving the constant
currency net sales growth was favorable net price realization of
10.6% and higher volume/mix of 0.5%, which reflected the strength
of the Company's brand portfolio, continued strong in-market
execution and modest elasticities.
KDP in-market performance in the Liquid Refreshment Beverages
(LRB) category remained strong for the year, with retail dollar
consumption2 advancing 11.0% and KDP growing market
share of the category, largely reflecting strength in premium
unflavored waters, seltzers, coconut waters, apple juice, tea and
fruit drinks, and solid performance in CSDs3. This
performance was driven by CORE Hydration, Polar seltzers,
Vita Coco, Mott's, Snapple, Hawaiian
Punch and Dr Pepper, Canada Dry, A&W, Sunkist and Squirt
CSDs.
In coffee, retail dollar consumption of single-serve pods
manufactured by KDP increased 4.9% in IRi tracked channels, led by
higher pricing. KDP Manufactured share remained strong at
82.4% for the year.
GAAP operating income for the year decreased 10.0% to
$2.61 billion, compared to
$2.89 billion in the year-ago period,
primarily reflecting an unfavorable year-over-year impact of items
affecting comparability totaling $406
million. Also impacting the performance were the
benefits of higher gross profit, a change in accounting for
non-cash stock compensation expense, recovery of litigation
expenses associated with our successful Body Armor settlement, a
business interruption insurance recovery and a modest
year-over-year gain from the Company's strategic asset investment
program. These benefits were partially offset by
significantly higher inflationary pressures in transportation,
warehousing and labor. Excluding items affecting
comparability, Adjusted operating income increased 3.7% to
$3.54 billion and, on a percent of
net sales basis, Adjusted operating income was 25.2%.
GAAP net income for the year decreased 33.1% to $1.44 billion, or $1.01 per diluted share, compared to $2.15 billion, or $1.50 per diluted share, in the year-ago
period. This performance primarily reflected the decrease in
GAAP operating income and an unfavorable year-over-year impact of
non-operating items affecting comparability. This performance
was partially offset by the growth in Adjusted operating income and
lower Adjusted interest expense. Excluding items affecting
comparability, Adjusted net income for the year advanced 5.4% to
$2.40 billion, and Adjusted diluted
EPS increased 5.0% to $1.68, compared
to $1.60 in the year-ago period.
Free cash flow for the year was strong at $2.65 billion, reflecting a slight decrease in
operating cash flow more than offset by lower capital spending.
During the year, the Company repurchased approximately 10.6
million KDP shares at an average price per share of $35.88, totaling approximately $379 million. The Company has approximately
$3.6 billion remaining under its
share repurchase authorization expiring on December 31, 2025.
_________________________
2 Retail
consumption data based on Keurig Dr Pepper's custom IRi category
definitions for the 52-week period ending 12/25/2022.
|
3 CSDs refer
to "Carbonated Soft Drinks".
|
|
2022 Full Year Segment Results
Coffee Systems
Net sales for the year increased
5.6% to $4.98 billion, compared to
$4.72 billion in the year-ago period
and, on a constant currency basis, net sales advanced 6.2%.
The constant currency net sales growth was driven by a 7.0%
increase in net price realization, partially offset by a 0.8%
decrease in volume/mix driven by brewers.
The higher net price realization of 7.0% for the year primarily
reflected pricing actions taken in late 2021 and the second quarter
of 2022, while the volume/mix decrease of 0.8% was due to pod
shipment growth of 1.4%, more than offset by an expected brewer
shipment decline of 5.2%, due to lapping a COVID-related brewer
sales acceleration in the prior year. The Company added
approximately two million net new U.S. households to the Keurig
system in 2022, in line with its long-term annual target,
reflecting successful innovation including new connected brewer
models.
GAAP operating income for the year decreased 9.0% to
$1.32 billion, compared to
$1.45 billion in the year-ago
period. The performance largely reflected broad-based
inflationary pressure that was only partially offset by the growth
in net sales, productivity, a $44
million benefit from the Company's strategic asset
investment program and a $23 million
benefit related to the aforementioned insurance recovery.
Adjusted operating income decreased 7.5% to $1.51 billion and, on a percent of net sales
basis, totaled 30.4%.
Packaged Beverages
Net sales for the year
increased 12.3% to $6.61 billion,
compared to $5.88 billion in the
year-ago period and, on a constant currency basis, net sales
advanced 12.4%. This continued strong performance was driven
by higher net price realization of 12.1% and increased volume/mix
of 0.3%, the latter reflecting continued strength of the portfolio
and strong in-market execution. Broad-based strength was led
by CSDs, Mott's, Snapple, CORE Hydration, Hawaiian Punch, Polar
seltzers and Evian. KDP's highly successful Zero Sugar launch
across much of the CSD portfolio, the Snapple refresh, as well as
the Snapple Elements and Mott's Mighty launches, proved
incremental.
GAAP operating income for the year decreased 0.9% to
$1.01 billion, compared to
$1.02 billion in the year-ago period,
reflecting a modest unfavorable impact of items affecting
comparability and a significant increase in transportation,
warehousing and labor costs, as well as a year-over-year headwind
of $32 million from the Company's
strategic asset investment program. More than offsetting
these factors were the benefits of the strong net sales growth and
productivity. Excluding items affecting comparability,
Adjusted operating income increased 1.2% to $1.13 billion and, on a percent of net sales
basis, totaled 17.1%.
Beverage Concentrates
Net sales for the year
increased 16.1% to $1.73 billion,
compared to $1.49 billion in the
year-ago period and, on a constant currency basis, net sales
advanced 16.4%. This strong performance was driven by higher
net price realization of 14.7% and favorable volume/mix of 1.7%, as
elasticities remained modest.
Total shipment volume for the year increased 1.6% versus the
year-ago period, reflecting increases in Dr Pepper and Canada Dry,
partly offset by declines in Schweppes and Crush. Bottler
case sales volume for the year was essentially even with the
year-ago period.
GAAP operating income for the year increased 1.3% to
$1.06 billion, compared to
$1.05 billion in the year-ago period,
primarily reflecting the strong net sales performance, which more
than offset inflation and an unfavorable impact of items affecting
comparability. Excluding items affecting comparability,
Adjusted operating income increased 16.9% to $1.23 billion and, on a percent of net sales
basis, totaled 71.5%.
Latin America Beverages
Net sales for the year
increased 24.0% to $743 million,
compared to net sales of $599 million
in the year-ago period and, on a constant currency basis, net sales
advanced 23.0%. This strong and balanced performance was
driven by higher net price realization of 13.9% and increased
volume/mix of 9.1%, reflecting the strength of the portfolio and
continued strong in-market execution. Leading the net sales
growth were Peñafiel, Clamato, Mott's and Squirt.
GAAP operating income for the year increased 18.8% to
$158 million, compared to
$133 million in the year-ago period,
reflecting the strong net sales growth, productivity and a
favorable impact from foreign currency translation, partially
offset by broad-based inflationary pressure, significantly higher
marketing investment and a slightly unfavorable year-over-year
impact of items affecting comparability. Excluding items
affecting comparability and the favorable impact of foreign
currency translation, Adjusted operating income increased 18.5% to
$162 million and, on a percent of net
sales basis, totaled 21.8%.
Fourth Quarter Consolidated Results
Net sales for the
fourth quarter increased 12.1% to $3.80
billion, compared to $3.39
billion in the year-ago period. On a constant currency
basis, net sales advanced 12.4% with all four segments growing at a
double-digit rate. Driving the consolidated net sales growth
was favorable net price realization of 13.1%, only slightly offset
by lower volume/mix of 0.7%, reflecting continued modest
elasticities and exceptional in-market execution.
KDP in-market performance in the LRB category remained strong in
the quarter, with retail dollar consumption4 advancing
12.2% and total LRB dollar share posting another quarter of growth,
largely reflecting strength in premium unflavored waters, seltzers,
apple juice and fruit drinks, combined with continued solid
performance in CSDs. This performance was driven by CORE
Hydration, Evian, Polar seltzers, Mott's, Hawaiian Punch and Dr
Pepper, Crush, Canada Dry, A&W, Schweppes and Squirt CSDs.
In coffee, retail dollar consumption of single-serve pods
manufactured by KDP increased 7.1% in IRi tracked channels, led by
higher pricing. KDP Manufactured share remained strong at
approximately 83% in the quarter, driven by strength of owned and
licensed pods.
GAAP operating income in the fourth quarter decreased 7.2% to
$673 million, compared to
$725 million in the year-ago period,
primarily reflecting an unfavorable year-over-year impact of items
affecting comparability, as well as continued broad-based
inflationary pressure and a net $26
million year-over year headwind from the Company's strategic
asset investment program. Partially offsetting these factors
were the higher net sales growth, increased gross profit and the
benefit of the aforementioned business interruption insurance
recovery that totaled $23
million. Excluding items affecting comparability,
Adjusted operating income increased 13.2% to $1.03 billion and, on a percent of net sales
basis, Adjusted operating income was 27.0%.
GAAP net income in the fourth quarter decreased 46.3% to
$453 million, or $0.32 per diluted share, compared to $843 million, or $0.59 per diluted share, in the year-ago period,
primarily reflecting the unfavorable year-over-year impact of items
affecting comparability, partially offset by the double-digit
growth in Adjusted operating income. Excluding items
affecting comparability, Adjusted net income in the quarter
advanced 11.6% to $714 million, while
Adjusted diluted EPS increased 11.1% to $0.50, compared to $0.45 in the year-ago period.
_________________________
4 Retail
consumption data based on Keurig Dr Pepper's custom IRi category
definitions for the 13-week period ending 12/25/2022.
|
|
Fourth Quarter Segment Results
Coffee Systems
Net sales for the fourth quarter
increased 12.7% to $1.49 billion,
compared to $1.32 billion in the
year-ago period and, on a constant currency basis, net sales
advanced 13.8%. The constant currency net sales growth was
driven by a 10.6% increase in net price realization and a 3.2%
increase in volume/mix, including a modest benefit of the
53rd week in 2022.
The higher net price realization of 10.6% in the quarter was
primarily driven by pricing actions taken in late 2021 and the
second quarter of 2022, while the volume/mix increase of 3.2% was
due to pod shipment growth of 2.9% and brewer shipment growth of
3.3%.
GAAP operating income increased 22.3% to $438 million, compared to $358 million in the year-ago period, largely
reflecting the strong net sales growth and productivity, as well as
the $44 million benefit from the
Company's strategic asset investment program and the $23 million benefit related to the aforementioned
insurance recovery. Also modestly benefiting the performance
was the impact of the 53rd week. These benefits
more than offset broad-based inflationary pressure in the quarter.
Excluding items affecting comparability, Adjusted operating
income increased 18.8% to $483
million and, on a percent of net sales basis, totaled
32.5%.
Packaged Beverages
Net sales for the fourth
quarter increased 9.9% to $1.68
billion, compared to $1.53
billion in the year-ago period and, on a constant currency
basis, net sales advanced 10.1%. This performance was driven
by higher net price realization of 14.9%, partially offset by a
4.8% decrease in volume/mix, as the segment lapped volume/mix
growth of 10.3% in the year-ago period. Broad-based net sales
growth across the portfolio was led by CSDs, Mott's, Snapple,
Hawaiian Punch, Evian and Polar seltzers.
GAAP operating income decreased 2.1% to $286 million, compared to $292 million in the year-ago period, primarily
reflecting the strong net sales growth and productivity, more than
offset by a $70 million
year-over-year headwind from the Company's strategic asset
investment program and continued broad-based inflation.
Excluding items affecting comparability, Adjusted operating income
decreased 1.3% to $311 million and,
on a percent of net sales basis, totaled 18.5%.
Beverage Concentrates
Net sales for the fourth
quarter increased 14.3% to $447
million, compared to $391
million in the year-ago period and, on a constant currency
basis, advanced 14.8%. This strong net sales performance was
driven by higher net price realization of 14.3% and favorable
volume/mix of 0.5%.
Total shipment volume increased 1.2% versus the year-ago period,
reflecting increases in Dr Pepper and Schweppes. Bottler case
sales volume was essentially even with the year-ago period.
GAAP operating income in the fourth quarter decreased 45.3% to
$146 million, compared to
$267 million in the year-ago period,
reflecting the strong net sales growth more than offset by the
unfavorable year-over-year impact of items affecting comparability.
Excluding items affecting comparability, Adjusted operating
income increased 14.3% to $310
million and, on a percent of net sales basis, totaled
69.4%.
Latin America Beverages
Net sales for the
fourth quarter increased 24.3% to $189
million, compared to net sales of $152 million in the year-ago period and, on a
constant currency basis, advanced 17.8%. This strong and
balanced performance was driven by higher net price realization of
13.2% and increased volume/mix of 4.6%, reflecting the continued
strength of the portfolio and continued strong in-market execution.
Leading the net sales growth were Peñafiel and Clamato.
GAAP operating income in the fourth quarter increased 15.8% to
$44 million, compared to $38 million in the year-ago period, reflecting
the strong net sales growth, productivity and a favorable impact
from foreign currency translation, partially offset by broad-based
inflationary pressure, significantly higher marketing investment
and a slightly unfavorable year-over-year impact of items affecting
comparability. Excluding items affecting comparability and
the favorable impact of foreign currency translation, Adjusted
operating income increased 10.5% to $45
million and, on a percent of net sales basis, totaled
23.8%.
KDP 2023 Guidance
The 2023 guidance provided below is
presented on a constant currency, non-GAAP basis. The Company
does not provide reconciliations of such forward-looking non-GAAP
measures to GAAP due to the inability to predict the amount and
timing of impacts outside of the Company's control on certain
items, such as non-cash gains or losses resulting from
mark-to-market adjustments of derivative instruments, among
others.
KDP expects net sales growth of 5% and Adjusted diluted EPS
growth of 6% to 7% in 2023, primarily reflecting an improved
relationship between pricing and inflation. Foreign currency
translation is expected to approximate a half of one percentage
point headwind to both net sales and Adjusted EPS growth.
Investor Contacts:
Steve
Alexander
T: 972-673-6769 / steve.alexander@kdrp.com
Chethan Mallela
T: 646-620-8761 / chethan.mallela@kdrp.com
Media Contact:
Katie
Gilroy
T: 781-418-3345 / katie.gilroy@kdrp.com
About Keurig Dr Pepper
Keurig Dr Pepper (KDP) is a
leading beverage company in North
America, with annual revenue of more than $14 billion and approximately 28,000 employees.
KDP holds leadership positions in soft drinks, specialty coffee and
tea, water, juice and juice drinks and mixers, and markets the #1
single serve coffee brewing system in the U.S. and Canada. The Company's portfolio of more than
125 owned, licensed and partner brands is designed to satisfy
virtually any consumer need, any time, and includes Keurig®, Dr
Pepper®, Canada Dry®, Clamato®, CORE®, Green Mountain Coffee
Roasters®, Mott's®, Snapple®, and The Original Donut Shop®. Through
its powerful sales and distribution network, KDP can deliver its
portfolio of hot and cold beverages to nearly every point of
purchase for consumers. The Company's Drink Well. Do Good.
corporate responsibility platform is focused on the greatest
opportunities for impact in the environment, its supply chain, the
health and well-being of consumers and with its people and
communities. For more information, visit
www.keurigdrpepper.com.
FORWARD LOOKING STATEMENTS
Certain statements
contained herein are "forward-looking statements" within the
meaning of applicable securities laws and regulations. These
forward-looking statements can generally be identified by the use
of words such as "outlook," "guidance," "anticipate," "expect,"
"believe," "could," "estimate," "feel," "forecast," "intend,"
"may," "plan," "potential," "project," "should," "target," "will,"
"would," and similar words. Forward-looking statements by their
nature address matters that are, to different degrees, uncertain.
These statements are based on the current expectations of our
management, are not predictions of actual performance, and actual
results may differ materially.
Forward-looking statements are subject to a number of risks and
uncertainties, including the factors disclosed in our Annual Report
on Form 10-K and subsequent filings with the SEC. We are under no
obligation to update, modify or withdraw any forward-looking
statements, except as required by applicable law.
NON-GAAP FINANCIAL MEASURES
This release includes
certain non-GAAP financial measures including Adjusted operating
income, Adjusted net income, Adjusted diluted EPS, free cash flow
and financial measures presented on a constant currency basis,
which differ from results using U.S. Generally Accepted Accounting
Principles (GAAP). These non-GAAP financial measures should be
considered as supplements to the GAAP reported measures, should not
be considered replacements for, or superior to, the GAAP measures
and may not be comparable to similarly named measures used by other
companies. Non-GAAP financial measures typically exclude certain
charges, including one-time costs that are not expected to occur
routinely in future periods. The Company uses non-GAAP financial
measures internally to focus management on performance excluding
these special charges to gauge our business operating performance.
Management believes this information is helpful to investors
because it increases transparency and assists investors in
understanding the underlying performance of the Company and in the
analysis of ongoing operating trends. Additionally, management
believes that non-GAAP financial measures are frequently used by
analysts and investors in their evaluation of companies, and their
continued inclusion provides consistency in financial reporting and
enables analysts and investors to perform meaningful comparisons of
past, present and future operating results. The most directly
comparable GAAP financial measures and reconciliations to non-GAAP
financial measures are set forth in the appendix to this release
and included in the Company's filings with the SEC.
To the extent that the Company provides guidance, it does so
only on a non-GAAP basis and does not provide reconciliations of
such forward-looking non-GAAP measures to GAAP due to the inability
to predict the amount and timing of impacts outside of the
Company's control on certain items, such as non-cash gains or
losses resulting from mark-to-market adjustments of derivative
instruments, among others.
KEURIG DR PEPPER
INC.
|
CONSOLIDATED
STATEMENTS OF INCOME
|
(UNAUDITED)
|
|
|
Fourth
Quarter
|
|
Year Ended December
31,
|
(in millions,
except per share data)
|
2022
|
|
2021
|
|
2022
|
|
2021
|
Net
sales
|
$
3,803
|
|
$
3,391
|
|
$
14,057
|
|
$
12,683
|
Cost of
sales
|
1,807
|
|
1,619
|
|
6,734
|
|
5,706
|
Gross
profit
|
1,996
|
|
1,772
|
|
7,323
|
|
6,977
|
Selling, general and
administrative expenses
|
1,227
|
|
1,113
|
|
4,645
|
|
4,153
|
Impairment of
intangible assets
|
166
|
|
—
|
|
477
|
|
—
|
Gain on litigation
settlement
|
—
|
|
—
|
|
(299)
|
|
—
|
Other operating income,
net
|
(70)
|
|
(66)
|
|
(105)
|
|
(70)
|
Income from
operations
|
673
|
|
725
|
|
2,605
|
|
2,894
|
Interest
expense
|
123
|
|
119
|
|
693
|
|
500
|
Loss on early
extinguishment of debt
|
—
|
|
—
|
|
217
|
|
105
|
Gain on sale of equity
method investment
|
—
|
|
(524)
|
|
(50)
|
|
(524)
|
Impairment of
investments and note receivable
|
—
|
|
17
|
|
12
|
|
17
|
Other expense (income),
net
|
(8)
|
|
4
|
|
14
|
|
(2)
|
Income before
provision for income taxes
|
558
|
|
1,109
|
|
1,719
|
|
2,798
|
Provision for income
taxes
|
105
|
|
266
|
|
284
|
|
653
|
Net income including
non-controlling interest
|
453
|
|
843
|
|
1,435
|
|
2,145
|
Less: Net loss
attributable to non-controlling interest
|
—
|
|
—
|
|
(1)
|
|
(1)
|
Net income
attributable to KDP
|
$
453
|
|
$
843
|
|
$
1,436
|
|
$
2,146
|
|
|
|
|
|
|
|
|
Earnings per common
share:
|
|
|
|
|
|
|
|
Basic
|
$
0.32
|
|
$
0.59
|
|
$
1.01
|
|
$
1.52
|
Diluted
|
0.32
|
|
0.59
|
|
1.01
|
|
1.50
|
Weighted average
common shares outstanding:
|
|
|
|
|
|
|
|
Basic
|
1,415.5
|
|
1,418.0
|
|
1,416.8
|
|
1,415.7
|
Diluted
|
1,427.5
|
|
1,429.0
|
|
1,428.5
|
|
1,427.9
|
KEURIG DR PEPPER
INC.
|
CONDENSED
CONSOLIDATED BALANCE SHEETS
|
(UNAUDITED)
|
|
|
December
31,
|
|
December
31,
|
(in millions,
except share and per share data)
|
2022
|
|
2021
|
Assets
|
Current
assets:
|
|
|
|
Cash and cash
equivalents
|
$
535
|
|
$
567
|
Restricted cash and
cash equivalents
|
—
|
|
1
|
Trade accounts
receivable, net
|
1,484
|
|
1,148
|
Inventories
|
1,314
|
|
894
|
Prepaid expenses and
other current assets
|
471
|
|
447
|
Total current
assets
|
3,804
|
|
3,057
|
Property, plant and
equipment, net
|
2,491
|
|
2,494
|
Investments in
unconsolidated affiliates
|
1,000
|
|
30
|
Goodwill
|
20,072
|
|
20,182
|
Other intangible
assets, net
|
23,183
|
|
23,856
|
Other non-current
assets
|
1,252
|
|
937
|
Deferred tax
assets
|
35
|
|
42
|
Total
assets
|
$
51,837
|
|
$
50,598
|
Liabilities and
Stockholders' Equity
|
Current
liabilities:
|
|
|
|
Accounts
payable
|
$
5,206
|
|
$
4,316
|
Accrued
expenses
|
1,153
|
|
1,110
|
Structured
payables
|
137
|
|
142
|
Short-term borrowings
and current portion of long-term obligations
|
895
|
|
304
|
Other current
liabilities
|
685
|
|
613
|
Total current
liabilities
|
8,076
|
|
6,485
|
Long-term
obligations
|
11,072
|
|
11,578
|
Deferred tax
liabilities
|
5,739
|
|
5,986
|
Other non-current
liabilities
|
1,825
|
|
1,577
|
Total
liabilities
|
26,712
|
|
25,626
|
Commitments and
contingencies
|
|
|
|
Stockholders'
equity:
|
|
|
|
Preferred stock, $0.01
par value, 15,000,000 shares authorized, no shares
issued
|
—
|
|
—
|
Common stock, $0.01
par value, 2,000,000,000 shares authorized, 1,408,394,293 and
1,418,119,197 shares issued and outstanding as of December 31, 2022
and 2021, respectively
|
14
|
|
14
|
Additional paid-in
capital
|
21,444
|
|
21,785
|
Retained
earnings
|
3,539
|
|
3,199
|
Accumulated other
comprehensive income (loss)
|
129
|
|
(26)
|
Total stockholders'
equity
|
25,126
|
|
24,972
|
Non-controlling
interest
|
(1)
|
|
—
|
Total
equity
|
25,125
|
|
24,972
|
Total liabilities
and stockholders' equity
|
$
51,837
|
|
$
50,598
|
KEURIG DR PEPPER
INC.
|
CONSOLIDATED
STATEMENTS OF CASH FLOWS
|
(UNAUDITED)
|
|
|
Year Ended December
31,
|
(in
millions)
|
2022
|
|
2021
|
Operating
activities:
|
|
|
|
Net income attributable
to KDP
|
$
1,436
|
|
$
2,146
|
Adjustments to
reconcile net income to net cash provided by operating
activities:
|
|
|
|
Depreciation
expense
|
399
|
|
410
|
Amortization of
intangibles
|
138
|
|
134
|
Other amortization
expense
|
172
|
|
164
|
Provision for sales
returns
|
61
|
|
63
|
Deferred income
taxes
|
(289)
|
|
31
|
Employee stock-based
compensation expense
|
52
|
|
88
|
Loss on early
extinguishment of debt
|
217
|
|
105
|
Gain on sale of equity
method investment
|
(50)
|
|
(524)
|
Gain on disposal of
property, plant and equipment
|
(80)
|
|
(75)
|
Unrealized loss on
foreign currency
|
26
|
|
9
|
Unrealized loss (gain)
on derivatives
|
383
|
|
(70)
|
Settlements of
interest rate contracts
|
125
|
|
—
|
Equity in losses of
unconsolidated affiliates
|
5
|
|
5
|
Impairment of
intangible assets
|
477
|
|
—
|
Impairment on
investments and note receivable of unconsolidated
affiliates
|
12
|
|
17
|
Other, net
|
28
|
|
20
|
Changes in assets and
liabilities:
|
|
|
|
Trade accounts
receivable
|
(398)
|
|
(152)
|
Inventories
|
(426)
|
|
(133)
|
Income taxes
receivable and payables, net
|
(105)
|
|
114
|
Other current and
non-current assets
|
(456)
|
|
(243)
|
Accounts payable and
accrued expenses
|
903
|
|
762
|
Other current and
non-current liabilities
|
207
|
|
3
|
Net change in
operating assets and liabilities
|
(275)
|
|
351
|
Net cash provided by
operating activities
|
2,837
|
|
2,874
|
Investing
activities:
|
|
|
|
Proceeds from sale of
investment in unconsolidated affiliates
|
50
|
|
578
|
Purchases of property,
plant and equipment
|
(353)
|
|
(423)
|
Proceeds from sales of
property, plant and equipment
|
168
|
|
122
|
Purchases of
intangibles
|
(26)
|
|
(32)
|
Issuance of related
party note receivable
|
(18)
|
|
(19)
|
Investments in
unconsolidated affiliates
|
(962)
|
|
—
|
Other, net
|
6
|
|
(16)
|
Net cash (used in)
provided by investing activities
|
(1,135)
|
|
210
|
Financing
activities:
|
|
|
|
Proceeds from issuance
of Notes
|
3,000
|
|
2,150
|
Repayments of
Notes
|
(3,365)
|
|
(3,595)
|
Proceeds from issuance
of commercial paper
|
1,198
|
|
5,406
|
Repayments of
commercial paper
|
(948)
|
|
(5,257)
|
Repayments of 2019 KDP
Term Loan
|
—
|
|
(425)
|
Proceeds from
structured payables
|
155
|
|
156
|
Repayments of
structured payables
|
(158)
|
|
(167)
|
Cash dividends
paid
|
(1,080)
|
|
(955)
|
Repurchases of common
stock
|
(379)
|
|
—
|
Proceeds from issuance
of common stock
|
—
|
|
140
|
Tax withholdings
related to net share settlements
|
(15)
|
|
(125)
|
Payments on finance
leases
|
(90)
|
|
(54)
|
Other, net
|
(46)
|
|
(36)
|
Net cash used in
financing activities
|
(1,728)
|
|
(2,762)
|
Cash, cash
equivalents, and restricted cash and cash
equivalents:
|
|
|
|
Net change from
operating, investing and financing activities
|
(26)
|
|
322
|
Effect of exchange rate
changes
|
(7)
|
|
(9)
|
Beginning
balance
|
568
|
|
255
|
Ending
balance
|
$
535
|
|
$
568
|
KEURIG DR PEPPER
INC.
|
RECONCILIATION OF
SEGMENT INFORMATION
|
(UNAUDITED)
|
|
|
Fourth
Quarter
|
|
Year Ended December
31,
|
(in
millions)
|
2022
|
|
2021
|
|
2022
|
|
2021
|
Net
Sales
|
|
|
|
|
|
|
|
Coffee
Systems
|
$
1,485
|
|
$
1,318
|
|
$
4,982
|
|
$
4,716
|
Packaged
Beverages
|
1,682
|
|
1,530
|
|
6,607
|
|
5,882
|
Beverage
Concentrates
|
447
|
|
391
|
|
1,725
|
|
1,486
|
Latin America
Beverages
|
189
|
|
152
|
|
743
|
|
599
|
Total net
sales
|
$
3,803
|
|
$
3,391
|
|
$
14,057
|
|
$
12,683
|
|
|
|
|
|
|
|
|
Income from
Operations
|
|
|
|
|
|
|
|
Coffee
Systems
|
$
438
|
|
$
358
|
|
$
1,316
|
|
$
1,446
|
Packaged
Beverages
|
286
|
|
292
|
|
1,014
|
|
1,023
|
Beverage
Concentrates
|
146
|
|
267
|
|
1,061
|
|
1,047
|
Latin America
Beverages
|
44
|
|
38
|
|
158
|
|
133
|
Unallocated corporate
costs
|
(241)
|
|
(230)
|
|
(944)
|
|
(755)
|
Total income from
operations
|
$
673
|
|
$
725
|
|
$
2,605
|
|
$
2,894
|
KEURIG DR PEPPER INC.
RECONCILIATION OF CERTAIN NON-GAAP INFORMATION
(UNAUDITED)
The company reports its financial results in accordance with
U.S. GAAP. However, management believes that certain non-GAAP
financial measures that reflect the way management evaluates the
business may provide investors with additional information
regarding the company's results, trends and ongoing performance on
a comparable basis.
Specifically, investors should consider the following with
respect to our financial results:
Adjusted: Defined as certain financial statement captions
and metrics adjusted for certain items affecting comparability.
Items affecting comparability: Defined as certain items
that are excluded for comparison to prior year periods, adjusted
for the tax impact as applicable. Tax impact is determined based
upon an approximate rate for each item. For each period, management
adjusts for (i) the unrealized mark-to-market impact of derivative
instruments not designated as hedges in accordance with U.S. GAAP
that do not have an offsetting risk reflected within the financial
results, as well as the unrealized mark-to-market impact of our
Vita Coco investment; (ii) the
amortization associated with definite-lived intangible assets;
(iii) the amortization of the deferred financing costs associated
with the DPS Merger; (iv) the amortization of the fair value
adjustment of the senior unsecured notes obtained as a result of
the DPS Merger; (v) stock compensation expense and the associated
windfall tax benefit attributable to the matching awards made to
employees who made an initial investment in KDP; (vi) non-cash
changes in deferred tax liabilities related to goodwill and other
intangible assets as a result of tax rate or apportionment changes;
and (vii) other certain items that are excluded for comparison
purposes to prior year periods.
For the fourth quarter and full year ended December 31, 2022, the other certain items
excluded for comparison purposes include (i) restructuring and
integration expenses related to significant business combinations;
(ii) productivity expenses; (iii) costs related to significant
non-routine legal matters, specifically the antitrust litigation;
(iv) the loss on early extinguishment of debt related to the
redemption of debt; (v) incremental costs to our operations related
to risks associated with the COVID-19 pandemic, which were incurred
to either maintain the health and safety of our front-line
employees or temporarily increase compensation to such employees to
ensure essential operations continue during the pandemic; (vi) the
gain on the sale of our investment in BodyArmor as a result of the
settlement of the associated holdback liability; (vii) the gain on
the settlement of our prior litigation with BodyArmor, excluding
recoveries of previously incurred litigation expenses which were
included in our adjusted results; (viii) losses recognized with
respect to our equity method investment in Bedford as a result of funding our share of
their wind-down costs; (ix) transaction costs for significant
business combinations (completed or abandoned); (x) foundational
projects, which are transformative and non-recurring in nature; and
(xi) impairments recognized on certain intangible brand assets.
For the fourth quarter and full year ended December 31, 2021, the other certain items
excluded for comparison purposes include (i) restructuring and
integration expenses related to significant business combinations;
(ii) productivity expenses; (iii) costs related to significant
non-routine legal matters; (iv) the loss on early extinguishment of
debt related to the redemption of debt; (v) incremental costs to
our operations related to risks associated with the COVID-19
pandemic; (vi) gains from insurance recoveries related to the
February 2019 organized malware
attack on our business operation networks in the Coffee Systems
segment; (vii) the gain on the sale of our investment in BodyArmor;
(viii) impairment recognized on our equity method investment with
Bedford as a result of funding our
share of their wind-down costs; and (ix) transaction costs for
significant business combinations (completed or abandoned).
Constant currency adjusted: Defined as certain financial
statement captions and metrics adjusted for certain items affecting
comparability, calculated on a constant currency basis by
converting our current period local currency financial results
using the prior period foreign currency exchange rates.
For the fourth quarter and full year ended December 31, 2022 and 2021, the supplemental
financial data set forth below includes reconciliations of adjusted
and constant currency adjusted financial measures to the applicable
financial measure presented in the unaudited condensed consolidated
financial statements for the same period.
KEURIG DR PEPPER
INC.
|
RECONCILIATION OF
CERTAIN NON-GAAP INFORMATION
|
(UNAUDITED)
|
|
|
Cost of
sales
|
|
Gross
profit
|
|
Gross
margin
|
|
Selling, general
and
administrative
expenses
|
|
Impairment
of intangible
assets
|
|
Income
from
operations
|
|
Operating
margin
|
For the Fourth
Quarter of 2022
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Reported
|
$
1,807
|
|
$
1,996
|
|
52.5 %
|
|
$
1,227
|
|
$
166
|
|
$
673
|
|
17.7 %
|
Items Affecting
Comparability:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Mark to
market
|
10
|
|
(10)
|
|
|
|
(1)
|
|
—
|
|
(9)
|
|
|
Amortization of
intangibles
|
—
|
|
—
|
|
|
|
(38)
|
|
—
|
|
38
|
|
|
Stock
compensation
|
—
|
|
—
|
|
|
|
(2)
|
|
—
|
|
2
|
|
|
Restructuring and
integration costs
|
—
|
|
—
|
|
|
|
(81)
|
|
—
|
|
81
|
|
|
Productivity
|
(30)
|
|
30
|
|
|
|
(41)
|
|
—
|
|
71
|
|
|
Impairment of
intangible assets
|
—
|
|
—
|
|
|
|
—
|
|
(166)
|
|
166
|
|
|
Non-routine legal
matters
|
—
|
|
—
|
|
|
|
(4)
|
|
—
|
|
4
|
|
|
COVID-19
|
1
|
|
(1)
|
|
|
|
(1)
|
|
—
|
|
—
|
|
|
Foundational
projects
|
—
|
|
—
|
|
|
|
(1)
|
|
—
|
|
1
|
|
|
Adjusted
|
$
1,788
|
|
$
2,015
|
|
53.0 %
|
|
$
1,058
|
|
$
—
|
|
$
1,027
|
|
27.0 %
|
Impact of foreign
currency
|
|
|
|
|
— %
|
|
|
|
|
|
|
|
— %
|
Constant currency
adjusted
|
|
|
|
|
53.0 %
|
|
|
|
|
|
|
|
27.0 %
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
For the Fourth
Quarter of 2021
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Reported
|
$
1,619
|
|
$
1,772
|
|
52.3 %
|
|
$
1,113
|
|
$
—
|
|
$
725
|
|
21.4 %
|
Items Affecting
Comparability:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Mark to
market
|
(21)
|
|
21
|
|
|
|
(7)
|
|
—
|
|
28
|
|
|
Amortization of
intangibles
|
—
|
|
—
|
|
|
|
(33)
|
|
—
|
|
33
|
|
|
Stock
compensation
|
—
|
|
—
|
|
|
|
(4)
|
|
—
|
|
4
|
|
|
Restructuring and
integration costs
|
—
|
|
—
|
|
|
|
(57)
|
|
—
|
|
57
|
|
|
Productivity
|
(29)
|
|
29
|
|
|
|
(19)
|
|
—
|
|
48
|
|
|
Non-routine legal
matters
|
—
|
|
—
|
|
|
|
(7)
|
|
—
|
|
7
|
|
|
COVID-19
|
(4)
|
|
4
|
|
|
|
(2)
|
|
—
|
|
6
|
|
|
Transaction
costs
|
—
|
|
—
|
|
|
|
(1)
|
|
—
|
|
1
|
|
|
Malware
incident
|
—
|
|
—
|
|
|
|
(1)
|
|
—
|
|
1
|
|
|
Adjusted
|
$
1,565
|
|
$
1,826
|
|
53.8 %
|
|
$
982
|
|
$
—
|
|
$
910
|
|
26.8 %
|
|
Refer to page A-12 for
reconciliations of reported net sales to constant currency net
sales and adjusted income from operations to constant currency
adjusted income from operations.
|
KEURIG DR PEPPER
INC.
|
RECONCILIATION OF
CERTAIN NON-GAAP INFORMATION
|
(UNAUDITED)
|
|
|
Interest
expense
|
|
Gain on sale
of equity
method
investment
|
|
Impairment of
investments
and note
receivable
|
|
Other
expense
(income), net
|
|
Income before
provision for
income taxes
|
|
Provision for
income taxes
|
|
Effective
tax rate
|
|
Net income
attributable to
KDP
|
|
Diluted
earnings per
share
|
For the Fourth
Quarter of 2022
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Reported
|
$ 123
|
|
$
—
|
|
$
—
|
|
$
(8)
|
|
$
558
|
|
$
105
|
|
18.8 %
|
|
$
453
|
|
$
0.32
|
Items Affecting
Comparability:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Mark to
market
|
(2)
|
|
—
|
|
—
|
|
4
|
|
(11)
|
|
(8)
|
|
|
|
(3)
|
|
—
|
Amortization of
intangibles
|
—
|
|
—
|
|
—
|
|
—
|
|
38
|
|
10
|
|
|
|
28
|
|
0.02
|
Amortization of fair
value debt adjustment
|
(5)
|
|
—
|
|
—
|
|
—
|
|
5
|
|
1
|
|
|
|
4
|
|
—
|
Stock
compensation
|
—
|
|
—
|
|
—
|
|
—
|
|
2
|
|
—
|
|
|
|
2
|
|
—
|
Restructuring and
integration costs
|
—
|
|
—
|
|
—
|
|
—
|
|
81
|
|
19
|
|
|
|
62
|
|
0.04
|
Productivity
|
—
|
|
—
|
|
—
|
|
—
|
|
71
|
|
24
|
|
|
|
47
|
|
0.03
|
Impairment of
intangible assets
|
—
|
|
—
|
|
—
|
|
—
|
|
166
|
|
49
|
|
|
|
117
|
|
0.08
|
Impairment of
investment
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
3
|
|
|
|
(3)
|
|
—
|
Loss on early
extinguishment of debt
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
(3)
|
|
|
|
3
|
|
—
|
Non-routine legal
matters
|
—
|
|
—
|
|
—
|
|
—
|
|
4
|
|
1
|
|
|
|
3
|
|
—
|
COVID-19
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
1
|
|
|
|
(1)
|
|
—
|
Foundational
projects
|
—
|
|
—
|
|
—
|
|
—
|
|
1
|
|
—
|
|
|
|
1
|
|
—
|
Change in deferred tax
liabilities related to goodwill and other intangible
assets
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
(1)
|
|
|
|
1
|
|
—
|
Adjusted
|
$ 116
|
|
$
—
|
|
$
—
|
|
$
(4)
|
|
$
915
|
|
$
201
|
|
22.0 %
|
|
$
714
|
|
$
0.50
|
Impact of foreign
currency
|
|
|
|
|
|
|
|
|
|
|
|
|
0.1 %
|
|
|
|
|
Constant currency
adjusted
|
|
|
|
|
|
|
|
|
|
|
|
|
22.1 %
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Diluted earnings per
common share may not foot due to rounding.
|
KEURIG DR PEPPER
INC.
|
RECONCILIATION OF
CERTAIN NON-GAAP INFORMATION
|
(UNAUDITED)
|
|
|
Interest
expense
|
|
Gain on sale
of equity
method
investment
|
|
Impairment of
investments
and note
receivable
|
|
Other
expense
(income), net
|
|
Income before
provision for
income taxes
|
|
Provision for
income taxes
|
|
Effective
tax rate
|
|
Net income
attributable to
KDP
|
|
Diluted
earnings per
share
|
For the Fourth
Quarter of 2021
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Reported
|
$ 119
|
|
$
(524)
|
|
$
17
|
|
$
4
|
|
$
1,109
|
|
$
266
|
|
24.0 %
|
|
$
843
|
|
$
0.59
|
Items Affecting
Comparability:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Mark to
market
|
(1)
|
|
—
|
|
—
|
|
(6)
|
|
35
|
|
10
|
|
|
|
25
|
|
0.02
|
Amortization of
intangibles
|
—
|
|
—
|
|
—
|
|
—
|
|
33
|
|
5
|
|
|
|
28
|
|
0.02
|
Amortization of
deferred financing costs
|
(1)
|
|
—
|
|
—
|
|
—
|
|
1
|
|
—
|
|
|
|
1
|
|
—
|
Amortization of fair
value of debt adjustment
|
(5)
|
|
—
|
|
—
|
|
—
|
|
5
|
|
2
|
|
|
|
3
|
|
—
|
Stock
compensation
|
—
|
|
—
|
|
—
|
|
—
|
|
4
|
|
1
|
|
|
|
3
|
|
—
|
Restructuring and
integration costs
|
—
|
|
—
|
|
—
|
|
—
|
|
57
|
|
12
|
|
|
|
45
|
|
0.03
|
Productivity
|
—
|
|
—
|
|
—
|
|
—
|
|
48
|
|
11
|
|
|
|
37
|
|
0.03
|
Impairment of
investment
|
—
|
|
—
|
|
(17)
|
|
—
|
|
17
|
|
(45)
|
|
|
|
62
|
|
0.04
|
Non-routine legal
matters
|
—
|
|
—
|
|
—
|
|
—
|
|
7
|
|
2
|
|
|
|
5
|
|
—
|
COVID-19
|
—
|
|
—
|
|
—
|
|
—
|
|
6
|
|
1
|
|
|
|
5
|
|
—
|
Gain on sale of
equity-method investment
|
—
|
|
524
|
|
—
|
|
—
|
|
(524)
|
|
(124)
|
|
|
|
(400)
|
|
(0.28)
|
Transaction
costs
|
—
|
|
—
|
|
—
|
|
—
|
|
1
|
|
—
|
|
|
|
1
|
|
—
|
Malware
incident
|
—
|
|
—
|
|
—
|
|
—
|
|
1
|
|
1
|
|
|
|
—
|
|
—
|
Change in deferred tax
liabilities related to goodwill and other intangible
assets
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
18
|
|
|
|
(18)
|
|
(0.01)
|
Adjusted
|
$ 112
|
|
$
—
|
|
$
—
|
|
$
(2)
|
|
$
800
|
|
$
160
|
|
20.0 %
|
|
$
640
|
|
$
0.45
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Change -
adjusted
|
3.6 %
|
|
|
|
|
|
|
|
|
|
|
|
|
|
11.6 %
|
|
11.1 %
|
Impact of foreign
currency
|
— %
|
|
|
|
|
|
|
|
|
|
|
|
|
|
— %
|
|
— %
|
Change - constant
currency adjusted
|
3.6 %
|
|
|
|
|
|
|
|
|
|
|
|
|
|
11.6 %
|
|
11.1 %
|
|
Diluted earnings per
common share may not foot due to rounding.
|
KEURIG DR PEPPER
INC.
|
RECONCILIATION OF
CERTAIN NON-GAAP INFORMATION
|
(UNAUDITED)
|
|
|
Cost of
sales
|
|
Gross
profit
|
|
Gross
margin
|
|
Selling, general
and administrative
expenses
|
|
Impairment
of intangible
assets
|
|
Gain on
litigation
settlement
|
|
Other operating
income, net
|
|
Income from
operations
|
|
Operating
margin
|
For the Year Ended
December 31, 2022
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Reported
|
$
6,734
|
|
$
7,323
|
|
52.1 %
|
|
$
4,645
|
|
$
477
|
|
$
(299)
|
|
$
(105)
|
|
$
2,605
|
|
18.5 %
|
Items Affecting
Comparability:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Mark to
market
|
(120)
|
|
120
|
|
|
|
(30)
|
|
—
|
|
—
|
|
—
|
|
150
|
|
|
Amortization of
intangibles
|
—
|
|
—
|
|
|
|
(138)
|
|
—
|
|
—
|
|
—
|
|
138
|
|
|
Stock
compensation
|
—
|
|
—
|
|
|
|
(5)
|
|
—
|
|
—
|
|
—
|
|
5
|
|
|
Restructuring and
integration costs
|
—
|
|
—
|
|
|
|
(170)
|
|
—
|
|
—
|
|
(2)
|
|
172
|
|
|
Productivity
|
(116)
|
|
116
|
|
|
|
(114)
|
|
—
|
|
—
|
|
—
|
|
230
|
|
|
Impairment of
intangible assets
|
—
|
|
—
|
|
|
|
—
|
|
(477)
|
|
—
|
|
—
|
|
477
|
|
|
Non-routine legal
matters
|
—
|
|
—
|
|
|
|
(13)
|
|
—
|
|
—
|
|
—
|
|
13
|
|
|
COVID-19
|
(9)
|
|
9
|
|
|
|
(5)
|
|
—
|
|
—
|
|
—
|
|
14
|
|
|
Gain on
litigation
|
—
|
|
—
|
|
|
|
—
|
|
—
|
|
271
|
|
—
|
|
(271)
|
|
|
Transaction
costs
|
—
|
|
—
|
|
|
|
(1)
|
|
—
|
|
—
|
|
—
|
|
1
|
|
|
Foundational
projects
|
—
|
|
—
|
|
|
|
(4)
|
|
—
|
|
—
|
|
—
|
|
4
|
|
|
Adjusted
|
$
6,489
|
|
$
7,568
|
|
53.8 %
|
|
$
4,165
|
|
$
—
|
|
$
(28)
|
|
$
(107)
|
|
$
3,538
|
|
25.2 %
|
Impact of foreign
currency
|
|
|
|
|
— %
|
|
|
|
|
|
|
|
|
|
|
|
— %
|
Constant currency
adjusted
|
|
|
|
|
53.8 %
|
|
|
|
|
|
|
|
|
|
|
|
25.2 %
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
For the Year Ended
December 31, 2021
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Reported
|
$
5,706
|
|
$
6,977
|
|
55.0 %
|
|
$
4,153
|
|
$
—
|
|
$
—
|
|
$
(70)
|
|
$
2,894
|
|
22.8 %
|
Items Affecting
Comparability:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Mark to
market
|
32
|
|
(32)
|
|
|
|
25
|
|
—
|
|
—
|
|
—
|
|
(57)
|
|
|
Amortization of
intangibles
|
—
|
|
—
|
|
|
|
(134)
|
|
—
|
|
—
|
|
—
|
|
134
|
|
|
Stock
compensation
|
—
|
|
—
|
|
|
|
(18)
|
|
—
|
|
—
|
|
—
|
|
18
|
|
|
Restructuring and
integration costs
|
—
|
|
—
|
|
|
|
(202)
|
|
—
|
|
—
|
|
—
|
|
202
|
|
|
Productivity
|
(72)
|
|
72
|
|
|
|
(91)
|
|
—
|
|
—
|
|
—
|
|
163
|
|
|
Non-routine legal
matters
|
—
|
|
—
|
|
|
|
(30)
|
|
—
|
|
—
|
|
—
|
|
30
|
|
|
COVID-19
|
(26)
|
|
26
|
|
|
|
(11)
|
|
—
|
|
—
|
|
—
|
|
37
|
|
|
Transaction
costs
|
—
|
|
—
|
|
|
|
(2)
|
|
—
|
|
—
|
|
—
|
|
2
|
|
|
Malware
incident
|
—
|
|
—
|
|
|
|
2
|
|
—
|
|
—
|
|
—
|
|
(2)
|
|
|
Adjusted
|
$
5,640
|
|
$
7,043
|
|
55.5 %
|
|
$
3,692
|
|
$
—
|
|
$
—
|
|
$
(70)
|
|
$
3,421
|
|
27.0 %
|
|
Refer to page A-13 for
reconciliations of reported net sales to constant currency net
sales and adjusted income from operations to constant currency
adjusted income from operations.
|
KEURIG DR PEPPER
INC.
|
RECONCILIATION OF
CERTAIN NON-GAAP INFORMATION
|
(UNAUDITED)
|
|
|
Interest
expense
|
|
Loss on early
extinguishment
of debt
|
|
Gain on sale of
equity method
investment
|
|
Impairment of
investments and
note receivable
|
|
Other
expense
(income),
net
|
|
Income before
provision for
income taxes
|
|
Provision for
income taxes
|
|
Effective
tax rate
|
|
Net income
attributable
to KDP
|
|
Diluted
earnings
per share
|
For the Year Ended
December 31, 2022
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Reported
|
$ 693
|
|
$
217
|
|
$
(50)
|
|
$
12
|
|
$
14
|
|
$
1,719
|
|
$
284
|
|
16.5 %
|
|
$ 1,436
|
|
$
1.01
|
Items Affecting
Comparability:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Mark to
market
|
(249)
|
|
—
|
|
—
|
|
—
|
|
4
|
|
395
|
|
93
|
|
|
|
302
|
|
0.21
|
Amortization of
intangibles
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
138
|
|
35
|
|
|
|
103
|
|
0.07
|
Amortization of
deferred financing costs
|
(2)
|
|
—
|
|
—
|
|
—
|
|
—
|
|
2
|
|
—
|
|
|
|
2
|
|
—
|
Amortization of fair
value debt adjustment
|
(19)
|
|
—
|
|
—
|
|
—
|
|
—
|
|
19
|
|
4
|
|
|
|
15
|
|
0.01
|
Stock
compensation
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
5
|
|
(1)
|
|
|
|
6
|
|
—
|
Restructuring and
integration costs
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
172
|
|
41
|
|
|
|
131
|
|
0.09
|
Productivity
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
230
|
|
56
|
|
|
|
174
|
|
0.12
|
Impairment of
intangible assets
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
477
|
|
126
|
|
|
|
351
|
|
0.25
|
Impairment of
investment
|
—
|
|
—
|
|
—
|
|
(12)
|
|
—
|
|
12
|
|
3
|
|
|
|
9
|
|
0.01
|
Loss on early
extinguishment of debt
|
—
|
|
(217)
|
|
—
|
|
—
|
|
—
|
|
217
|
|
51
|
|
|
|
166
|
|
0.12
|
Non-routine legal
matters
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
13
|
|
3
|
|
|
|
10
|
|
0.01
|
COVID-19
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
14
|
|
4
|
|
|
|
10
|
|
0.01
|
Gain on
litigation
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
(271)
|
|
(68)
|
|
|
|
(203)
|
|
(0.14)
|
Gain on sale of
equity-method investment
|
—
|
|
—
|
|
50
|
|
—
|
|
—
|
|
(50)
|
|
(12)
|
|
|
|
(38)
|
|
(0.03)
|
Transaction
costs
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
1
|
|
—
|
|
|
|
1
|
|
—
|
Foundational
projects
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
4
|
|
1
|
|
|
|
3
|
|
—
|
Change in deferred tax
liabilities related to goodwill and other intangible
assets
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
80
|
|
|
|
(80)
|
|
(0.06)
|
Adjusted
|
$ 423
|
|
$
—
|
|
$
—
|
|
$
—
|
|
$
18
|
|
$
3,097
|
|
$
700
|
|
22.6 %
|
|
$ 2,398
|
|
$
1.68
|
Impact of foreign
currency
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
— %
|
|
|
|
|
Constant currency
adjusted
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
22.6 %
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Diluted earnings per
common share may not foot due to rounding.
|
KEURIG DR PEPPER
INC.
|
RECONCILIATION OF
CERTAIN NON-GAAP INFORMATION
|
(UNAUDITED)
|
|
|
Interest
expense
|
|
Loss on early
extinguishment
of debt
|
|
Gain on sale of
equity method
investment
|
|
Impairment of
investments and
note receivable
|
|
Other
expense
(income),
net
|
|
Income before
provision for
income taxes
|
|
Provision for
income taxes
|
|
Effective
tax rate
|
|
Net income
attributable
to KDP
|
|
Diluted
earnings
per share
|
For the Year Ended
December 31, 2021
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Reported
|
$ 500
|
|
$
105
|
|
$
(524)
|
|
$
17
|
|
$
(2)
|
|
$
2,798
|
|
$
653
|
|
23.3 %
|
|
$ 2,146
|
|
$
1.50
|
Items Affecting
Comparability:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Mark to
market
|
6
|
|
—
|
|
—
|
|
—
|
|
(6)
|
|
(57)
|
|
(13)
|
|
|
|
(44)
|
|
(0.03)
|
Amortization of
intangibles
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
134
|
|
31
|
|
|
|
103
|
|
0.07
|
Amortization of
deferred financing costs
|
(7)
|
|
—
|
|
—
|
|
—
|
|
—
|
|
7
|
|
2
|
|
|
|
5
|
|
—
|
Amortization of fair
value of debt adjustment
|
(19)
|
|
—
|
|
—
|
|
—
|
|
—
|
|
19
|
|
5
|
|
|
|
14
|
|
0.01
|
Stock
compensation
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
18
|
|
15
|
|
|
|
3
|
|
—
|
Restructuring and
integration costs
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
202
|
|
47
|
|
|
|
155
|
|
0.11
|
Productivity
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
163
|
|
40
|
|
|
|
123
|
|
0.09
|
Impairment of
investment
|
—
|
|
—
|
|
—
|
|
(17)
|
|
—
|
|
17
|
|
(45)
|
|
|
|
62
|
|
0.04
|
Loss on early
extinguishment of debt
|
—
|
|
(105)
|
|
—
|
|
—
|
|
—
|
|
105
|
|
24
|
|
|
|
81
|
|
0.06
|
Non-routine legal
matters
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
30
|
|
7
|
|
|
|
23
|
|
0.01
|
COVID-19
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
37
|
|
9
|
|
|
|
28
|
|
0.02
|
Gain on sale of
equity-method investment
|
—
|
|
—
|
|
524
|
|
—
|
|
—
|
|
(524)
|
|
(124)
|
|
|
|
(400)
|
|
(0.28)
|
Transaction
costs
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
2
|
|
—
|
|
|
|
2
|
|
—
|
Malware
incident
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
(2)
|
|
—
|
|
|
|
(2)
|
|
—
|
Change in deferred tax
liabilities related to goodwill and other intangible
assets
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
19
|
|
|
|
(19)
|
|
(0.01)
|
Adjusted
|
$ 480
|
|
$
—
|
|
$
—
|
|
$
—
|
|
$
(8)
|
|
$
2,949
|
|
$
670
|
|
22.7 %
|
|
$ 2,280
|
|
$
1.60
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Change -
adjusted
|
(11.9) %
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
5.2 %
|
|
5.0 %
|
Impact of foreign
currency
|
— %
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
0.2 %
|
|
— %
|
Change - Constant
currency adjusted
|
(11.9) %
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
5.4 %
|
|
5.0 %
|
|
Diluted earnings per
common share may not foot due to rounding.
|
KEURIG DR PEPPER
INC.
|
RECONCILIATION OF
CERTAIN NON-GAAP INFORMATION
|
(UNAUDITED)
|
|
|
(in
millions)
|
Reported
|
|
Items Affecting
Comparability
|
|
Adjusted
|
For the fourth
quarter of 2022
|
|
|
|
|
|
Income from
operations
|
|
|
|
|
|
Coffee
Systems
|
$
438
|
|
$
45
|
|
$
483
|
Packaged
Beverages
|
286
|
|
25
|
|
311
|
Beverage
Concentrates
|
146
|
|
164
|
|
310
|
Latin America
Beverages
|
44
|
|
1
|
|
45
|
Unallocated corporate
costs
|
(241)
|
|
119
|
|
(122)
|
Total income from
operations
|
$
673
|
|
$
354
|
|
$
1,027
|
|
|
|
|
|
|
For the fourth
quarter of 2021
|
|
|
|
|
|
Income from
operations
|
|
|
|
|
|
Coffee
Systems
|
$
358
|
|
$
52
|
|
$
410
|
Packaged
Beverages
|
292
|
|
25
|
|
317
|
Beverage
Concentrates
|
267
|
|
5
|
|
272
|
Latin America
Beverages
|
38
|
|
—
|
|
38
|
Unallocated corporate
costs
|
(230)
|
|
103
|
|
(127)
|
Total income from
operations
|
$
725
|
|
$
185
|
|
$
910
|
|
|
|
|
|
|
|
Reported
|
|
Impact of
Foreign
Currency
|
|
Constant
Currency
|
For the fourth
quarter of 2022
|
|
|
|
|
|
Net
sales
|
|
|
|
|
|
Coffee
Systems
|
12.7 %
|
|
1.1 %
|
|
13.8 %
|
Packaged
Beverages
|
9.9
|
|
0.2
|
|
10.1
|
Beverage
Concentrates
|
14.3
|
|
0.5
|
|
14.8
|
Latin America
Beverages
|
24.3
|
|
(6.5)
|
|
17.8
|
Total net
sales
|
12.1
|
|
0.3
|
|
12.4
|
|
|
|
|
|
|
|
Adjusted
|
|
Impact of
Foreign
Currency
|
|
Constant
Currency
Adjusted
|
For the fourth
quarter of 2022
|
|
|
|
|
|
Income from
operations
|
|
|
|
|
|
Coffee
Systems
|
17.8 %
|
|
1.0 %
|
|
18.8 %
|
Packaged
Beverages
|
(1.9)
|
|
0.6
|
|
(1.3)
|
Beverage
Concentrates
|
14.0
|
|
0.3
|
|
14.3
|
Latin America
Beverages
|
18.4
|
|
(7.9)
|
|
10.5
|
Total income from
operations
|
12.9
|
|
0.3
|
|
13.2
|
|
|
Reported
|
|
Items Affecting
Comparability
|
|
Adjusted
|
|
Impact of
Foreign
Currency
|
|
Constant
Currency
Adjusted
|
For the fourth
quarter of 2022
|
|
|
|
|
|
|
|
|
|
|
Operating
margin
|
|
|
|
|
|
|
|
|
|
|
Coffee
Systems
|
|
29.5 %
|
|
3.0 %
|
|
32.5 %
|
|
— %
|
|
32.5 %
|
Packaged
Beverages
|
|
17.0
|
|
1.5
|
|
18.5
|
|
0.1
|
|
18.6
|
Beverage
Concentrates
|
|
32.7
|
|
36.7
|
|
69.4
|
|
(0.1)
|
|
69.3
|
Latin America
Beverages
|
|
23.3
|
|
0.5
|
|
23.8
|
|
(0.3)
|
|
23.5
|
Total operating
margin
|
|
17.7
|
|
9.3
|
|
27.0
|
|
—
|
|
27.0
|
KEURIG DR PEPPER
INC.
|
RECONCILIATION OF
CERTAIN FINANCIAL MEASURES BY SEGMENT TO CONSTANT
CURRENCY
|
ADJUSTED FINANCIAL
MEASURES BY SEGMENT
|
(UNAUDITED)
|
|
(in
millions)
|
Reported
|
|
Items Affecting
Comparability
|
|
Adjusted
|
For the year ended
December 31, 2022
|
|
|
|
|
|
Income from
operations
|
|
|
|
|
|
Coffee
Systems
|
$
1,316
|
|
$
198
|
|
$
1,514
|
Packaged
Beverages
|
1,014
|
|
119
|
|
1,133
|
Beverage
Concentrates
|
1,061
|
|
173
|
|
1,234
|
Latin America
Beverages
|
158
|
|
4
|
|
162
|
Unallocated corporate
costs
|
(944)
|
|
439
|
|
(505)
|
Total income from
operations
|
$
2,605
|
|
$
933
|
|
$
3,538
|
|
|
|
|
|
|
For the year ended
December 31, 2021
|
|
|
|
|
|
Income from
operations
|
|
|
|
|
|
Coffee
Systems
|
$
1,446
|
|
$
197
|
|
$
1,643
|
Packaged
Beverages
|
1,023
|
|
99
|
|
1,122
|
Beverage
Concentrates
|
1,047
|
|
11
|
|
1,058
|
Latin America
Beverages
|
133
|
|
2
|
|
135
|
Unallocated corporate
costs
|
(755)
|
|
218
|
|
(537)
|
Total income from
operations
|
$
2,894
|
|
$
527
|
|
$
3,421
|
|
|
|
|
|
|
|
Reported
|
|
Impact of
Foreign
Currency
|
|
Constant
Currency
|
For the year ended
December 31, 2022
|
|
|
|
|
|
Net
sales
|
|
|
|
|
|
Coffee
Systems
|
5.6 %
|
|
0.6 %
|
|
6.2 %
|
Packaged
Beverages
|
12.3
|
|
0.1
|
|
12.4
|
Beverage
Concentrates
|
16.1
|
|
0.3
|
|
16.4
|
Latin America
Beverages
|
24.0
|
|
(1.0)
|
|
23.0
|
Total net
sales
|
10.8
|
|
0.3
|
|
11.1
|
|
|
|
|
|
|
|
Adjusted
|
|
Impact of
Foreign
Currency
|
|
Constant
Currency
Adjusted
|
For the year ended
December 31, 2022
|
|
|
|
|
|
Income from
operations
|
|
|
|
|
|
Coffee
Systems
|
(7.9) %
|
|
0.4 %
|
|
(7.5) %
|
Packaged
Beverages
|
1.0
|
|
0.2
|
|
1.2
|
Beverage
Concentrates
|
16.6
|
|
0.3
|
|
16.9
|
Latin America
Beverages
|
20.0
|
|
(1.5)
|
|
18.5
|
Total income from
operations
|
3.4
|
|
0.3
|
|
3.7
|
|
|
Reported
|
|
Items
Affecting
Comparability
|
|
Adjusted
|
|
Impact of
Foreign
Currency
|
|
Constant
Currency
Adjusted
|
For the year ended
December 31, 2022
|
|
|
|
|
|
|
|
|
|
|
Operating
margin
|
|
|
|
|
|
|
|
|
|
|
Coffee
Systems
|
|
26.4 %
|
|
4.0 %
|
|
30.4 %
|
|
(0.1) %
|
|
30.3 %
|
Packaged
Beverages
|
|
15.3
|
|
1.8
|
|
17.1
|
|
0.1
|
|
17.2
|
Beverage
Concentrates
|
|
61.5
|
|
10.0
|
|
71.5
|
|
—
|
|
71.5
|
Latin America
Beverages
|
|
21.3
|
|
0.5
|
|
21.8
|
|
(0.1)
|
|
21.7
|
Total operating
margin
|
|
18.5
|
|
6.7
|
|
25.2
|
|
—
|
|
25.2
|
KEURIG DR PEPPER
INC.
|
RECONCILIATION OF
ADJUSTED EBITDA AND MANAGEMENT LEVERAGE RATIO
|
(UNAUDITED)
|
|
|
(in millions,
except for ratio)
|
|
ADJUSTED EBITDA
RECONCILIATION - LAST TWELVE MONTHS
|
|
Net income
attributable to KDP
|
$
1,436
|
Interest
expense
|
693
|
Provision for income
taxes
|
284
|
Other expense
(income), net
|
14
|
Depreciation
expense
|
399
|
Other
amortization
|
172
|
Amortization of
intangibles
|
138
|
EBITDA
|
$
3,136
|
Items affecting
comparability:
|
|
Gain on sale of
equity-method investment
|
$
(50)
|
Gain on litigation
settlement
|
(271)
|
Loss on early
extinguishment of debt
|
217
|
Impairment of
intangible assets
|
477
|
Impairment of
investments and note receivable
|
12
|
Restructuring and
integration expenses
|
169
|
Productivity
|
201
|
Non-routine legal
matters
|
13
|
Stock
compensation
|
5
|
COVID-19
|
14
|
Transaction
costs
|
1
|
Foundational
projects
|
4
|
Mark to
market
|
150
|
Adjusted
EBITDA
|
$
4,078
|
|
|
|
December
31,
|
|
2022
|
Principal amounts
of:
|
|
Commercial paper
notes
|
$
399
|
Senior unsecured
notes
|
11,743
|
Total principal
amounts
|
12,142
|
Less: Cash and cash
equivalents
|
535
|
Total principal
amounts less cash and cash equivalents
|
$
11,607
|
|
|
December 31, 2022
Management Leverage Ratio
|
2.8
|
KEURIG DR PEPPER INC.
RECONCILIATION OF NET CASH PROVIDED BY OPERATING ACTIVITIES TO
FREE CASH FLOW
(UNAUDITED)
Free cash flow is defined as net cash provided by operating
activities adjusted for purchases of property, plant and equipment,
proceeds from sales of property, plant and equipment, and certain
items excluded for comparison to prior year periods. For the years
ended December 31, 2021 and 2020,
there were no certain items excluded for comparison to prior year
periods.
|
|
Year Ended December
31,
|
(in
millions)
|
|
2022
|
|
2021
|
Net cash provided by
operating activities
|
|
$
2,837
|
|
$
2,874
|
Purchases of property,
plant and equipment
|
|
(353)
|
|
(423)
|
Proceeds from sales of
property, plant and equipment
|
|
168
|
|
122
|
Free Cash
Flow
|
|
$
2,652
|
|
$
2,573
|
KEURIG DR PEPPER INC.
RECONCILIATION OF SIGNIFICANT COVID-19 RELATED EXPENSES
(UNAUDITED)
The following table sets forth our reconciliation of significant
COVID-19-related expenses. However, employee compensation expense
and employee protection costs, which impact our SG&A expenses
and cost of sales, are included as the COVID-19 item affecting
comparability and are excluded in our Adjusted financial measures.
In addition, reported amounts under U.S. GAAP also include
additional costs, not included as the COVID-19 item affecting
comparability, as presented in tables below.
|
|
|
|
|
|
|
|
|
Items Affecting
Comparability(1)
|
|
|
|
|
(in
millions)
|
Employee
Compensation
Expense(2)
|
|
Employee
Protection
Costs(3)
|
|
Allowances
for Expected
Credit
Losses(4)
|
|
Total
|
For the fourth
quarter of 2022
|
|
|
|
|
|
|
|
Coffee
Systems
|
$
—
|
|
$
(1)
|
|
$
—
|
|
$
(1)
|
Packaged
Beverages
|
1
|
|
—
|
|
—
|
|
1
|
Beverage
Concentrates
|
—
|
|
—
|
|
—
|
|
—
|
Latin America
Beverages
|
—
|
|
—
|
|
—
|
|
—
|
Total
|
$
1
|
|
$
(1)
|
|
$
—
|
|
$
—
|
|
|
|
|
|
|
|
|
For the fourth
quarter of 2021
|
|
|
|
|
|
|
|
Coffee
Systems
|
$
1
|
|
$
1
|
|
$
—
|
|
$
2
|
Packaged
Beverages
|
1
|
|
1
|
|
—
|
|
2
|
Beverage
Concentrates
|
—
|
|
—
|
|
—
|
|
—
|
Latin America
Beverages
|
—
|
|
—
|
|
—
|
|
—
|
Total
|
$
2
|
|
$
2
|
|
$
—
|
|
$
4
|
|
|
|
|
|
|
|
|
For the year ended
December 31, 2022
|
|
|
|
|
|
|
|
Coffee
Systems
|
$
1
|
|
$
5
|
|
$
—
|
|
$
6
|
Packaged
Beverages
|
4
|
|
3
|
|
—
|
|
7
|
Beverage
Concentrates
|
—
|
|
—
|
|
—
|
|
—
|
Latin America
Beverages
|
—
|
|
1
|
|
—
|
|
1
|
Total
|
$
5
|
|
$
9
|
|
$
—
|
|
$
14
|
|
|
|
|
|
|
|
|
For the year ended
December 31, 2021
|
|
|
|
|
|
|
|
Coffee
Systems
|
$
4
|
|
$
16
|
|
$
(2)
|
|
$
18
|
Packaged
Beverages
|
8
|
|
7
|
|
(8)
|
|
7
|
Beverage
Concentrates
|
—
|
|
—
|
|
(3)
|
|
(3)
|
Latin America
Beverages
|
—
|
|
2
|
|
—
|
|
2
|
Total
|
$
12
|
|
$
25
|
|
$
(13)
|
|
$
24
|
|
|
|
|
|
|
|
|
|
|
(1)
|
Employee compensation
expense and employee protection costs are both included as the
COVID-19 items affecting comparability in the reconciliation of our
Adjusted Non-GAAP financial measures.
|
(2)
|
Primarily included
incremental benefits provided to frontline workers such as extended
sick leave, in order to maintain essential operations during the
COVID-19 pandemic.
|
(3)
|
Included costs
associated with personal protective equipment, temperature scans,
cleaning and other sanitization services. Impacts both cost of
sales and SG&A expenses.
|
(4)
|
Reflects reversal of
allowances initially recorded in 2020 specifically related to the
COVID-19 pandemic, driven by improving economic conditions during
2021.
|
View original content to download
multimedia:https://www.prnewswire.com/news-releases/keurig-dr-pepper-reports-2022-results-and-provides-outlook-for-2023-301753882.html
SOURCE Keurig Dr Pepper Inc.