Keurig Dr Pepper Inc
For the period ended Dec 31, 2024. Filed Feb 25, 2025.
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FY2024 · Filed Feb 25, 2025
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. Other Financial Information
- Other Financial Information
CASH AND CASH EQUIVALENTS
The carrying value of cash, cash equivalents, restricted cash, and restricted cash equivalents is valued as of the balance sheet date equating fair value and is classified as Level 1. The following table provides a reconciliation of cash, cash equivalents, restricted cash, and restricted cash equivalents reported with the Consolidated Balance Sheets to the total of the same amounts shown in the Consolidated Statements of Cash Flows:
| December 31, | ||
|---|---|---|
| (in millions) | 2024 | 2023 |
| Cash and cash equivalents | $510 | $267 |
| Restricted cash and restricted cash equivalents(1) | 80 | — |
| Non-current restricted cash and restricted cash equivalents(2) | 18 | — |
| Total cash, cash equivalents, restricted cash, and restricted cash equivalents | $608 | $267 |
(1)Restricted cash and restricted cash equivalents consists primarily of amounts held in escrow in connection with the acquisitions of GHOST and Kalil, and have a corresponding holdback liability recorded in Other current liabilities, as shown below. Refer to Note 4 for additional information.
(2)Non-current restricted cash and restricted cash equivalents, reported within Non-current assets on the Consolidated Balance Sheets, consists of amounts held in escrow in connection with the acquisition of GHOST, and has a corresponding holdback liability recorded in Other non-current liabilities. Refer to Note 4 for additional information.
SELECTED BALANCE SHEET INFORMATION
The following tables provide selected financial information from the Consolidated Balance Sheets:
| December 31, | ||
|---|---|---|
| (in millions) | 2024 | 2023 |
| Inventories: | ||
| Raw materials | $524 | $409 |
| Work-in-progress | 9 | 12 |
| Finished goods | 798 | 742 |
| Total | 1,331 | 1,163 |
| Allowance for excess and obsolete inventories | (32) | (21) |
| Total inventories | $1,299 | $1,142 |
| Prepaid expenses and other current assets: | ||
| Other receivables | $146 | $135 |
| Prepaid income taxes | 33 | 196 |
| Customer incentive programs | 18 | 24 |
| Derivative instruments | 80 | 15 |
| Prepaid marketing | 29 | 20 |
| Spare parts | 126 | 111 |
| Income tax receivable | 75 | 16 |
| Other | 99 | 81 |
| Total prepaid expenses and other current assets | $606 | $598 |
| Other non-current assets: | ||
| Operating lease right-of-use assets | $880 | $876 |
| Customer incentive programs | 45 | 45 |
| Derivative instruments | 6 | 3 |
| Equity securities | 89 | 69 |
| Non-current restricted cash and restricted cash equivalents | 18 | — |
| Other | 162 | 156 |
| Total other non-current assets | $1,200 | $1,149 |
Equity Securities
Fair values of equity securities are determined using quoted market prices from daily exchange traded markets, based on the closing price as of the balance sheet date, and are classified as Level 1. Unrealized mark-to-market gains and losses are recorded to Other (income) expense, net. The following table presents the amount of unrealized mark-to-market (gains) losses, net, on our equity securities recognized in the Consolidated Statements of Income related to these securities during the periods presented.
| For the Year Ended December 31, | |||
|---|---|---|---|
| (in millions) | 2024 | 2023 | 2022 |
| Unrealized mark-to-market (gains) losses | |||
| Vita Coco | $(17) | $(16) | $4 |
| Rabbi trust | (4) | (6) | 8 |
| December 31, | ||
|---|---|---|
| (in millions) | 2024 | 2023 |
| Accrued expenses: | ||
| Accrued customer trade | $439 | $477 |
| Accrued compensation | 235 | 208 |
| Insurance reserve | 57 | 50 |
| Interest accrual | 107 | 72 |
| Accrued termination fees(1) | 225 | — |
| Accrued transferable tax credits | 130 | 152 |
| Other accrued expenses | 391 | 283 |
| Total accrued expenses | $1,584 | $1,242 |
| Other current liabilities: | ||
| Dividends payable | $312 | $299 |
| Income taxes payable | 67 | 29 |
| Operating lease liability | 128 | 114 |
| Finance lease liability | 125 | 106 |
| Derivative instruments | 108 | 150 |
| Holdback liability | 80 | — |
| Other | 15 | 16 |
| Total other current liabilities | $835 | $714 |
| Other non-current liabilities: | ||
| Operating lease liability | $790 | $793 |
| Finance lease liability | 677 | 620 |
| Mandatory redemption liability(2) | 689 | — |
| Pension and post-retirement liability | 31 | 35 |
| Insurance reserves | 95 | 85 |
| Derivative instruments | 348 | 201 |
| Deferred compensation liability | 33 | 32 |
| Holdback liability | 18 | — |
| Other | 72 | 67 |
| Total other non-current liabilities | $2,753 | $1,833 |
(1)In connection with the GHOST Transactions, we executed an agreement which terminates the distribution rights for certain GHOST products by ABI, effective March 3, 2025, for a termination fee of $225 million. Refer to Note 4 for additional information.
(2)The fair value of our mandatory redemption liability is estimated using the Monte Carlo simulation method which includes forecasted EBITDA expectations, adjusting for market risks and volatility, calculating redemption prices, discounting to present terms with the cost of debt, and averaging results across scenarios to determine fair value, incorporating the market price of risk and volatility estimates from similar companies.
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