Keurig Dr Pepper Inc
For the period ended Mar 31, 2024. Filed Apr 25, 2024.
View on SEC.govAbout this filing
A company's report for each of its first three quarters. The financial statements are not audited. It shows how the business has moved since the last annual report, and what management says changed.
Mar 31, 2024 · Filed Apr 25, 2024
Extracted filing text, with the paragraph anchors used by the comparison.
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Long-Term Obligations and Borrowing Arrangements
- Long-term Obligations and Borrowing Arrangements
The following table summarizes our long-term obligations:
| (in millions) | March 31, 2024 | December 31, 2023 |
|---|---|---|
| Notes | $12,929 | $11,095 |
| Less: current portion of long-term obligations | — | (1,150) |
| Long-term obligations | $12,929 | $9,945 |
The following table summarizes our short-term borrowings and current portion of long-term obligations:
| (in millions) | March 31, 2024 | December 31, 2023 |
|---|---|---|
| Commercial paper notes | $1,908 | $2,096 |
| Current portion of long-term obligations | — | 1,150 |
| Short-term borrowings and current portion of long-term obligations | $1,908 | $3,246 |
SENIOR UNSECURED NOTES
Our Notes consisted of the following:
| (in millions, except %) · Maturity Date · Rate · March 31, 2024 · December 31, 2023 | |||||
|---|---|---|---|---|---|
| 2024 Notes | March 15, 2024 | 0.750% | — | 1,150 | |
| 2025 Merger Notes | May 25, 2025 | 4.417% | 529 | 529 | |
| 2025 Notes | November 15, 2025 | 3.400% | 500 | 500 | |
| 2026 Notes | September 15, 2026 | 2.550% | 400 | 400 | |
| 2027-B Notes | March 15, 2027 | Floating(2) | 350 | — | |
| 2027-C Notes | March 15, 2027 | 5.100% | 750 | — | |
| 2027 Notes | June 15, 2027 | 3.430% | 500 | 500 | |
| 2028 Merger Notes | May 25, 2028 | 4.597% | 1,112 | 1,112 | |
| 2029-B Notes | March 15, 2029 | 5.050% | 750 | — | |
| 2029 Notes | April 15, 2029 | 3.950% | 1,000 | 1,000 | |
| 2030 Notes | May 1, 2030 | 3.200% | 750 | 750 | |
| 2031 Notes | March 15, 2031 | 2.250% | 500 | 500 | |
| 2031-B Notes | March 15, 2031 | 5.200% | 500 | — | |
| 2032 Notes | April 15, 2032 | 4.050% | 850 | 850 | |
| 2034 Notes | March 15, 2034 | 5.300% | 650 | — | |
| 2038 Merger Notes | May 25, 2038 | 4.985% | 211 | 211 | |
| 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% | 391 | 391 | |
| 2050 Notes | May 1, 2050 | 3.800% | 750 | 750 | |
| 2051 Notes | March 15, 2051 | 3.350% | 500 | 500 | |
| 2052 Notes | April 15, 2052 | 4.500% | 1,150 | 1,150 | |
| Principal amount | 13,093 | 11,243 | |||
| Adjustment from principal amount to carrying amount(1) | (164) | (148) | |||
| Carrying amount | $12,929 | $11,095 | |||
(1)The carrying amount includes unamortized discounts, debt issuance costs and fair value adjustments related to the DPS Merger.
(2)The 2027-B Notes bear interest at a rate equal to Compounded SOFR (as defined in the respective indenture) plus 0.88% per annum, and the rate is reassessed quarterly.
On March 7, 2024, we completed the issuance of the 2027-B Notes, the 2027-C Notes, the 2029-B Notes, the 2031-B Notes, and the 2034 Notes, with an aggregate principal amount of $3 billion. The discount associated with these notes was approximately $5 million, and the Company incurred $16 million in debt issuance costs. The proceeds from the issuance were used for our share repurchase program, to repay outstanding commercial paper, and to repay the 2024 Notes at maturity, with the remainder intended for general corporate purposes.
VARIABLE-RATE BORROWING ARRANGEMENTS
Revolving Credit Agreement
The following table summarizes information about the Revolving Credit Agreement:
| Amounts Outstanding | ||||
|---|---|---|---|---|
| (in millions) | Maturity Date | Capacity | March 31, 2024 | December 31, 2023 |
| Revolving Credit Agreement(1) | February 23, 2027 | $4,000 | $— | $— |
(1)The Revolving Credit Agreement has $200 million letters of credit available, none of which were utilized as of March 31, 2024.
As of March 31, 2024, KDP was in compliance with its minimum interest coverage ratio relating to the Revolving Credit Agreement.
Commercial Paper Program
The following table provides information about ourweighted average borrowings under our commercial paper program:
| First Quarter | ||
|---|---|---|
| (in millions, except %) | 2024 | 2023 |
| Weighted average commercial paper borrowings | $2,430 | $506 |
| Weighted average borrowing rates | 5.62% | 4.86% |
Letter of Credit Facility
In addition to the portion of the Revolving Credit Agreement reserved for issuance of letters of credit, KDP has an incremental letter of credit facility. Under this facility, $150 million is available for the issuance of letters of credit, $57 million of which was utilized as of March 31, 2024 and $93 million of which remains available for use.
FAIR VALUE DISCLOSURES
The fair value of our commercial paper approximates the carrying value and is considered Level 2 within the fair value hierarchy.
The fair values of our Notes are based on current market rates available to us and are considered Level 2 within the fair value hierarchy. The difference between the fair value and the carrying value represents the theoretical net premium or discount that would be paid or received to retire all the Notes and related unamortized costs to be incurred at such date. The fair value of our Notes was $12,085 million and $10,486 million as of March 31, 2024 and December 31, 2023, respectively.
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