Keurig Dr Pepper Inc.
For the period ended Dec 31, 2025. Filed Feb 24, 2026.
View on SEC.govAbout this filing
A company's yearly report to the SEC, with audited financial statements. It is the fullest account a company gives of its business, its finances and the risks it sees.
FY2025 · Filed Feb 24, 2026
Extracted filing text, with the paragraph anchors used by the comparison.
See the whole filing, with its images and exhibitsContents
6. Goodwill and Intangible Assets
- Goodwill and Intangible Assets
GOODWILL
Changes in the carrying amount of goodwill by reportable segment are as follows:
| (in millions) | U.S. Refreshment Beverages | U.S. Coffee | International | Total |
|---|---|---|---|---|
| Balance as of December 31, 2023 | $8,714 | $8,622 | $2,866 | $20,202 |
| Foreign currency translation | — | — | (290) | (290) |
| Acquisitions(1) | 447 | — | — | 447 |
| Impairment(2) | (306) | — | — | (306) |
| Balance as of December 31, 2024(3) | 8,855 | 8,622 | 2,576 | 20,053 |
| Foreign currency translation | — | — | 179 | 179 |
| Acquisitions(1) | 15 | — | — | 15 |
| Balance as of December 31, 2025(3) | $8,870 | $8,622 | $2,755 | $20,247 |
(1)Refer to Note 4 for additional information on acquisitions.
(2)Impairment activity during the year ended December 31, 2024 represents impairment of our U.S. WD reporting unit. Refer to Impairment Analysis - 2024 Impairment Analysis below for further information.
(3)As of December 31, 2025 and 2024, goodwill for the U.S. Refreshment Beverages segment is inclusive of accumulated impairment losses of $306 million. There were no accumulated impairment losses for goodwill as of December 31, 2023.
INTANGIBLE ASSETS OTHER THAN GOODWILL
The net carrying amounts of intangible assets other than goodwill are as follows:
| December 31, 2025 · December 31, 2024 | ||||||||
|---|---|---|---|---|---|---|---|---|
| (in millions) · Gross Amount · Accumulated Amortization · Net Amount · Gross Amount · Accumulated Amortization · Net Amount | ||||||||
| Intangible assets with definite lives: | ||||||||
| Acquired technology | $1,146 | $(694) | $452 | $1,146 | $(621) | $525 | ||
| Customer relationships | 683 | (301) | 382 | 666 | (270) | 396 | ||
| Contractual arrangements | 146 | (30) | 116 | 144 | (21) | 123 | ||
| Trade names | 126 | (126) | — | 126 | (124) | 2 | ||
| Brands | 76 | (40) | 36 | 51 | (32) | 19 | ||
| Distribution rights | 162 | (35) | 127 | 66 | (23) | 43 | ||
| Other | 25 | (3) | 22 | — | — | — | ||
| Total intangible assets with definite lives | $2,364 | $(1,229) | $1,135 | $2,199 | $(1,091) | $1,108 | ||
| Intangible assets with indefinite lives: | ||||||||
| Brands(1) | $19,993 | $19,848 | ||||||
| Trade names | 2,478 | 2,478 | ||||||
| Distribution rights | 119 | 200 | ||||||
| Total intangible assets with indefinite lives | 22,590 | 22,526 | ||||||
| Total intangible assets, net | $23,725 | $23,634 | ||||||
(1)The change in brands with indefinite lives was driven by favorable foreign currency translation impacts of $223 million, which was partially offset by non-cash impairment charges of $78 million during the year ended December 31, 2025. Refer to 2025 Impairment Analysis below for further information.
Amortization expense for intangible assets with definite lives was as follows:
| Year Ended December 31, | |||
|---|---|---|---|
| (in millions) | 2025 | 2024 | 2023 |
| Amortization expense | $138 | $133 | $137 |
Amortization expense of these intangible assets is expected to be as follows:
| For the Years Ending December 31, | |||||
|---|---|---|---|---|---|
| (in millions) | 2026 | 2027 | 2028 | 2029 | 2030 |
| Expected amortization expense | $134 | $117 | $109 | $106 | $100 |
GOODWILL AND INTANGIBLE ASSETS IMPAIRMENT
2025 Impairment Analysis
For the year ended December 31, 2025, we performed a Step 0 analysis for certain indefinite lived intangible assets, including trade names and certain distribution rights, and did not identify any indicators of impairment. For goodwill, indefinite lived brands, and reacquired distribution rights, we performed a Step 1 analysis. As a result, non-cash impairment charges of $78 million were recorded specific to certain brands in the U.S. Refreshment Beverages segment. The primary factor that led to the brand impairment determination as of October 1, 2025 was an increase in our discount rate.
2024 Impairment Analysis
For the year ended December 31, 2024, we performed a Step 0 analysis for certain indefinite lived intangible assets, including trade names and distribution rights, and did not identify any indicators of impairment. For goodwill and indefinite lived brands, we performed a Step 1 analysis. As a result, non-cash impairment charges of $412 million were recorded specific to certain brands in the U.S. Refreshment Beverages segment, and a non-cash impairment charge of $306 million was recorded to goodwill related to the U.S. Warehouse Direct reporting unit in the U.S. Refreshment Beverages segment. The primary factors that led to the brand impairment determination as of October 1, 2024, primarily led by Snapple, were a downward outlook for operating cash flows in our strategic plan, which led to a reduction in the long-term growth rate. The primary factors that led to the goodwill impairment determination as of October 1, 2024, driven by our U.S. Warehouse Direct reporting unit, were headwinds experienced by certain brands in our still portfolio, including a downward outlook for operating cash flows in our strategic plan, which led to a reduction in the long-term growth rate.
2023 Impairment Analysis
For the year ended December 31, 2023, we performed a Step 1 analysis on all goodwill and indefinite lived intangible assets. No impairments were recorded as a result of these analyses.
Additional Impairment Considerations
The following table provides the range of rates considered to be significant inputs that were used in the annual impairment analyses as of October 1, 2025, 2024, and 2023:
| 2025 | 2024 | 2023 | ||||
|---|---|---|---|---|---|---|
| Rate | Minimum | Maximum | Minimum | Maximum | Minimum | Maximum |
| Discount rates | 9.5% | 12.0% | 7.0% | 9.5% | 8.0% | 13.5% |
| Long-term growth rates | —% | 3.5% | —% | 3.5% | —% | 4.0% |
| Royalty rates(1) | 1.0% | 1.0% | 1.0% | 1.0% | 1.0% | 10.0% |
(1)Royalty rates were used in a Step 1 quantitative analysis of certain non-priority brands for the years ended December 31, 2025, 2024, and 2023, and trade names for the year ended December 31, 2023.
The results of the impairment analyses of our indefinite lived priority brands as of October 1, 2025, 2024, and 2023 were as follows:
| 2025 · 2024 · 2023 | ||||||
|---|---|---|---|---|---|---|
| Headroom Percentage | Carrying Value | Fair Value | Carrying Value | Fair Value | Carrying Value | Fair Value |
| Brands | ||||||
| 0%(1) | $1,110 | $1,110 | $280 | $280 | $— | $— |
| Less than 25% | 2,847 | 3,110 | 2,580 | 2,900 | 2,274 | 2,493 |
| 26 - 50% | 314 | 440 | 1,488 | 2,160 | 2,339 | 3,018 |
| In excess of 50% | 15,639 | 29,280 | 14,481 | 34,490 | 14,767 | 29,002 |
(1)Carrying value reflects the results of the annual impairment analysis recognized during the years ended December 31, 2025 and 2024.
The text of this filing, as the company filed it with the SEC, without its images or exhibits. This is not investment advice.