Keurig Dr Pepper Inc.
For the period ended Sep 30, 2026. Filed Nov 9, 2026.
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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, 2026 · Filed Nov 9, 2026
Extracted filing text, with the paragraph anchors used by the comparison.
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Leases
- Leases
LESSEE
The following table presents the components of lease cost:
| Third Quarter | First Nine Months | |||
|---|---|---|---|---|
| (in millions) | 2026 | 2025 | 2026 | 2025 |
| Operating lease cost | $65 | $46 | $182 | $136 |
| Finance lease cost | ||||
| Amortization of right-of-use assets | 33 | 28 | 96 | 84 |
| Interest on lease liabilities | 14 | 10 | 38 | 28 |
| Variable lease cost(1) | 18 | 9 | 40 | 27 |
| Short-term lease cost | 4 | — | 8 | — |
| Total lease cost | $134 | $93 | $364 | $275 |
(1)Variable lease cost primarily consists of common area maintenance costs, property taxes, and adjustments for inflation.
The following tables present supplemental information about our leases:
| (in millions) | Balance Sheet Location | September 30, 2026 | December 31, 2025 |
|---|---|---|---|
| Assets: | |||
| Operating lease right-of-use assets | Other non-current assets | $988 | $845 |
| Finance lease right-of-use assets(1) | Property, plant, and equipment, net | 963 | 919 |
| Liabilities: | |||
| Operating lease liability | Other current liabilities | 203 | 127 |
| Finance lease liability | Other current liabilities | 151 | 179 |
| Operating lease liability | Other non-current liabilities | 828 | 764 |
| Finance lease liability | Other non-current liabilities | 837 | 745 |
(1)Amounts are presented net of accumulated amortization of $481 million and $426 million as of September 30, 2026 and December 31, 2025, respectively.
| First Nine Months | ||
|---|---|---|
| (in millions) | 2026 | 2025 |
| Cash paid for amounts included in the measurement of lease liabilities: | ||
| Operating cash flows from operating leases | $180 | $130 |
| Operating cash flows from finance leases | 38 | 27 |
| Financing cash flows from finance leases | 146 | 96 |
| Right-of-use assets obtained in exchange for lease obligations: | ||
| Operating leases(1) | 136 | 52 |
| Finance leases | 172 | 157 |
(1) Includes impacts from operating lease modifications of $26 million through the first nine months of 2026.
The following table presents information about our weighted average discount rate and remaining lease term:
| September 30, 2026 | December 31, 2025 | |
|---|---|---|
| Weighted average discount rate | ||
| Operating leases | 5.9% | 5.3% |
| Finance leases | 5.1% | 4.8% |
| Weighted average remaining lease term | ||
| Operating leases | 7 years | 8 years |
| Finance leases | 9 years | 9 years |
Schedule of Future Minimum Lease Payments
Future minimum lease payments for non-cancelable leases that have commenced and are reflected in the unaudited Condensed Consolidated Balance Sheets as of September 30, 2026 were as follows:
| (in millions) | Operating Leases | Finance Leases |
|---|---|---|
| Remainder of 2026 | $52 | $63 |
| 2027 | 242 | 174 |
| 2028 | 192 | 163 |
| 2029 | 164 | 154 |
| 2030 | 142 | 141 |
| 2031 | 117 | 106 |
| Thereafter | 355 | 409 |
| Total future minimum lease payments | 1,264 | 1,210 |
| Less: imputed interest | (233) | (222) |
| Present value of minimum lease payments | $1,031 | $988 |
Significant Leases that Have Not Yet Commenced
As of September 30, 2026, we have entered into leases that have not yet commenced with estimated aggregated future lease payments of approximately $187 million. These leases will commence through 2027, with initial lease terms ranging from 1 year to 15 years.
LESSOR
We lease coffee machines to customers under contractual arrangements that are primarily recognized as operating lease arrangements. Sales-type leases are immaterial. Lease revenue represented less than 1% of our consolidated net sales for all periods presented.
The text of this filing, as the company filed it with the SEC, without its images or exhibits. This is not investment advice.