Keurig Dr Pepper Inc.KDP
Keurig Dr Pepper Inc. Goodwill & Intangibles Disclosure
Goodwill and Intangible Assets
(1)Carrying value reflects the results of the annual impairment analysis recognized during the years ended December 31, 2025 and 2024.
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 | ||||||||||||||||||||||||||||||||
Historical Timeline
| Fiscal Year | Filed | |
|---|---|---|
| 2025 | Feb 24, 2026 | Showing above |
| 2024 | Feb 25, 2025 | |
| 2023 | Feb 22, 2024 | |
| 2022 | Feb 23, 2023 | |
| 2021 | Feb 24, 2022 | |
| 2020 | Feb 25, 2021 | |
| 2019 | Feb 27, 2020 | |
| 2018 | Feb 28, 2019 | |
| 2017 | Feb 14, 2018 | |
| 2016 | Feb 14, 2017 | |
| 2015 | Feb 23, 2016 | |
About Goodwill & Intangibles Disclosures
Goodwill and intangible asset disclosures reveal the premium paid in acquisitions and how management assesses whether that premium retains its value. Since goodwill is no longer amortized under US GAAP, the annual impairment test is the only mechanism that adjusts carrying values downward — making the assumptions behind that test critically important for investors.
Key signals: a history of goodwill impairments suggests management consistently overpays for acquisitions. Watch the gap between reporting unit fair value and carrying amount — when fair value exceeds carrying amount by less than 10-20%, a small decline in business performance could trigger a write-down. For finite-lived intangibles, examine useful life assumptions across customer relationships, technology, and trade names; aggressive estimates inflate near-term earnings. Compare total intangibles-to-total-assets ratios against peers to assess acquisition dependency. Rising goodwill as a percentage of equity can signal balance sheet fragility.