Keurig Dr Pepper Inc

7. Leases

The following table presents the components of lease cost:

(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:

The following table presents information about our weighted average discount rate and remaining lease term:

SCHEDULE OF FUTURE MINIMUM LEASE PAYMENTS

Future minimum lease payments for non-cancellable leases that have commenced and are reflected on the Consolidated Balance Sheets as of December 31, 2024 were as follows:

SIGNIFICANT LEASES THAT HAVE NOT YET COMMENCED

As of December 31, 2024, we have entered into leases that have not yet commenced with estimated aggregated future lease payments of approximately $148 million. These leases will commence between 2025 and 2027, with initial lease terms ranging from 1 year to 7 years.

ASSET SALE-LEASEBACK TRANSACTIONS

In 2022 and 2023, we entered into a number of asset sale-leaseback transactions with a single sponsor, the Veyron SPEs. Gains on the sale-leasebacks are recorded in Other operating expense (income), net, and the leasebacks are accounted for as operating leases. Gains on sale-leaseback transactions were as follows:

The initial term of each leaseback is 15 years, with two 10-year renewal options. The renewal options are not reasonably assured as (i) KDP’s position that the dynamic environment in which we operate precludes our ability to be reasonably certain of exercising the renewal options in the distant future and (ii) the options are contingent on KDP remaining investment grade and no change-in-control as of the end of the lease term. Each leaseback has an RVG. Refer to Note 19 for additional information about RVGs associated with asset sale-leaseback transactions.