Keurig Dr Pepper Inc
For the period ended Jun 30, 2024. Filed Jul 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.
Jun 30, 2024 · Filed Jul 25, 2024
Extracted filing text, with the paragraph anchors used by the comparison.
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Leases
- Leases
The following table presents the components of lease cost:
| Second Quarter | First Six Months | |||
|---|---|---|---|---|
| (in millions) | 2024 | 2023 | 2024 | 2023 |
| Operating lease cost | $43 | $39 | $85 | $78 |
| Finance lease cost | ||||
| Amortization of right-of-use assets | 30 | 17 | 60 | 39 |
| Interest on lease liabilities | 7 | 6 | 14 | 12 |
| Variable lease cost(1) | 10 | 10 | 20 | 20 |
| Short-term lease cost | — | — | 1 | — |
| Total lease cost | $90 | $72 | $180 | $149 |
(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 our leases:
| First Six Months | ||
|---|---|---|
| (in millions) | 2024 | 2023 |
| Cash paid for amounts included in the measurement of lease liabilities: | ||
| Operating cash flows from operating leases | $80 | $73 |
| Operating cash flows from finance leases | 14 | 12 |
| Financing cash flows from finance leases | 56 | 49 |
| Right-of-use assets obtained in exchange for lease obligations: | ||
| Operating leases | 44 | 42 |
| Finance leases | 53 | 36 |
The following table presents information about our weighted average discount rate and remaining lease term:
| June 30, 2024 | December 31, 2023 | |
|---|---|---|
| Weighted average discount rate | ||
| Operating leases | 5.3% | 5.3% |
| Finance leases | 4.2% | 3.9% |
| Weighted average remaining lease term | ||
| Operating leases | 9 years | 10 years |
| Finance leases | 9 years | 9 years |
Future minimum lease payments for non-cancellable leases that have commenced and are reflected on the unaudited Condensed Consolidated Balance Sheets as of June 30, 2024 were as follows:
| (in millions) | Operating Leases | Finance Leases |
|---|---|---|
| Remainder of 2024 | $67 | $67 |
| 2025 | 158 | 133 |
| 2026 | 146 | 170 |
| 2027 | 123 | 80 |
| 2028 | 94 | 69 |
| 2029 | 88 | 61 |
| Thereafter | 456 | 288 |
| Total future minimum lease payments | 1,132 | 868 |
| Less: imputed interest | (242) | (147) |
| Present value of minimum lease payments | $890 | $721 |
SIGNIFICANT LEASES THAT HAVE NOT YET COMMENCED
As of June 30, 2024, we have entered into leases that have not yet commenced with estimated aggregated future lease payments of approximately $238 million. These leases are expected to commence between the third quarter of 2024 through 2027, with initial lease terms ranging from 1 year to 10 years.
The text of this filing, as the company filed it with the SEC, without its images or exhibits. This is not investment advice.