Keurig Dr Pepper Inc
For the period ended Sep 30, 2024. Filed Oct 24, 2024.
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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.
Sep 30, 2024 · Filed Oct 24, 2024
Extracted filing text, with the paragraph anchors used by the comparison.
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UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
FOR THE QUARTERLY PERIOD ENDED SEPTEMBER 30, 2024
OR
☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
FOR THE TRANSITION PERIOD FROM TO
Commission file number 001-33829
Keurig Dr Pepper Inc.
(Exact name of registrant as specified in its charter)
| Delaware | 98-0517725 |
|---|---|
| (State or other jurisdiction of incorporation or organization) | (I.R.S. employer identification number) |
53 South Avenue
Burlington, Massachusetts
(Address of principal executive offices)
(781) 418-7000
(Registrant's telephone number, including area code)
Securities registered pursuant to Section 12(b) of the Act:
| Title of each class | Trading Symbol | Name of each exchange on which registered |
|---|---|---|
| Common stock | KDP | The Nasdaq Stock Market LLC |
Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes ☒ No ☐
Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files). Yes ☒ No ☐
Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See the definitions of "large accelerated filer", "accelerated filer", "smaller reporting company", and "emerging growth company" in Rule 12b-2 of the Securities Exchange Act of 1934.
Large Accelerated Filer ☒ Accelerated Filer ☐ Non-Accelerated Filer ☐
Smaller Reporting Company☐ Emerging Growth Company☐
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐
Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Securities Exchange Act of 1934). Yes☐ No☒
As of October 22, 2024, there were 1,356,453,649 shares of the registrant's common stock, par value $0.01 per share, outstanding.
TABLE OF CONTENTS
| Page | ||||
|---|---|---|---|---|
| Part I | Financial Information | |||
| Item 1 · Financial Statements (Unaudited) | ||||
| Condensed Consolidated Statements of Income | 1 | |||
| Condensed Consolidated Statements of Comprehensive Income | 2 | |||
| Condensed Consolidated Balance Sheets | 3 | |||
| Condensed Consolidated Statements of Cash Flows | 4 | |||
| Condensed Consolidated Statements of Changes in Stockholders' Equity | 6 | |||
| Notes to Condensed Consolidated Financial Statements | 8 | |||
| 1 | General | 8 | ||
| 2 | Long-Term Obligations and Borrowing Arrangements | 8 | ||
| 3 | Acquisition | 10 | ||
| 4 | Goodwill and Other Intangible Assets | 11 | ||
| 5 | Derivatives | 12 | ||
| 6 | Leases | 16 | ||
| 7 | Segments | 17 | ||
| 8 | Revenue Recognition | 18 | ||
| 9 | Earnings Per Share | 20 | ||
| 10 | Stock-Based Compensation | 20 | ||
| 11 | Investments | 21 | ||
| 12 | Income Taxes | 21 | ||
| 13 | Accumulated Other Comprehensive Income | 22 | ||
| 14 | Other Financial Information | 23 | ||
| 15 | Commitments and Contingencies | 25 | ||
| 16 | Restructuring | 25 | ||
| 17 | Transactions with Related Parties | 26 | ||
| 18 | Subsequent Event | 26 | ||
| Item 2 | Management's Discussion and Analysis of Financial Condition and Results of Operations | 27 | ||
| Item 3 | Quantitative and Qualitative Disclosures About Market Risk | 41 | ||
| Item 4 | Controls and Procedures | 41 | ||
| Part II | Other Information | |||
| Item 1 | Legal Proceedings | 42 | ||
| Item 1A | Risk Factors | 42 | ||
| Item 2 | Unregistered Sales of Equity Securities and Use of Proceeds | 42 | ||
| Item 5 | Other Information | 42 | ||
| Item 6 | Exhibits | 43 | ||
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MASTER GLOSSARY
| Term | Definition |
|---|---|
| AOCI | Accumulated other comprehensive income or loss |
| Athletic Brewing | Athletic Brewing Holding Company, LLC, an equity method investment of KDP |
| Board | The Board of Directors of KDP |
| bps | Basis points |
| CEO | Chief Executive Officer |
| Chobani | FHU US Holdings LLC, an equity method investment of KDP |
| DIO | Days inventory outstanding |
| DPO | Days of payables outstanding |
| DPS | Dr Pepper Snapple Group, Inc. |
| DPS Merger | The combination of the business operations of Keurig and DPS as of July 9, 2018 |
| DSD | Direct Store Delivery, KDP’s route-to-market whereby finished beverages are delivered directly to retailers |
| DSO | Days sales outstanding |
| EPS | Earnings per share |
| Exchange Act | Securities Exchange Act of 1934, as amended |
| FX | Foreign exchange |
| GHOST | GHOST Lifestyle LLC, a Delaware limited liability company |
| JAB | JAB Holding Company S.a.r.l. and affiliates |
| Kalil | Kalil Bottling Company |
| Kalil Acquisition | The acquisition of all production, sales, and distribution assets of Kalil by KDP on August 9, 2024 |
| KDP | Keurig Dr Pepper Inc. |
| Keurig | Keurig Green Mountain, Inc., a wholly-owned subsidiary of KDP, and the brand of our brewers |
| LRB | Liquid refreshment beverages |
| Notes | Collectively, the Company's senior unsecured notes |
| Nutrabolt | Woodbolt Holdings LLC, d/b/a Nutrabolt, an equity method investment of KDP |
| Revolving Credit Agreement | KDP’s $4 billion revolving credit agreement, which was executed in February 2022 |
| RSU | Restricted share unit |
| Tractor | Tractor Beverages, Inc., an equity method investment of KDP |
| SEC | Securities and Exchange Commission |
| SG&A | Selling, general and administrative |
| SOFR | Secured Overnight Financing Rate |
| U.S. GAAP | Accounting principles generally accepted in the U.S. |
| Vita Coco | The Vita Coco Company, Inc. |
| WD | Warehouse Direct, KDP’s route-to-market whereby finished beverages are shipped to retailer warehouses, and then delivered by the retailer through its own delivery system to its stores |
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