Keurig Dr Pepper Inc.KDP
Keurig Dr Pepper Inc. Segments Disclosure
Segments
Our three operating and reportable segments consist of the following:
•The U.S. Refreshment Beverages segment reflects sales in the U.S. from the manufacture and distribution of branded concentrates, syrups, finished beverages, and other consumables, including the sales of our own brands and third-party brands, to third-party bottlers, distributors, and retailers.
•The U.S. Coffee segment reflects sales in the U.S. from the manufacture and distribution of finished goods relating to our K-Cup pods, single serve brewers and accessories, and other coffee products to partners, retailers, and directly to consumers through the Keurig.com website.
•The International segment reflects sales in international markets, including the following:
◦Sales in Canada, Mexico, the Caribbean, and other international markets from the manufacture and distribution of branded concentrates, syrups, and finished beverages, including sales of our own brands and third-party brands, to third-party bottlers, distributors, and retailers.
◦Sales in Canada from the manufacture and distribution of finished goods relating to our single serve brewers, K-Cup pods, and other coffee products.
Segment results are based on management reports provided to the CODM, which is Tim Cofer, our CEO. Net sales and income from operations are the significant financial measures used to assess the operating performance of our operating segments. The CODM periodically monitors our actual results and remaining forecast versus our annual budget for these financial measures, and this information is used to assess performance of the reportable segments, determine the payout of short-term incentive plan compensation, and to establish management's base salaries.
Intersegment sales are recorded at cost and are eliminated in the Consolidated Statements of Income. We have not provided disclosures of intersegment sales or total assets for each reportable segment, as our CODM does not review and is not provided with this information. "Other segment expense (income)" includes Other operating (income) expense, net, as well as other financial statement captions for infrequent charges, such as impairment of goodwill or intangible assets, used to arrive at "Income from operations - reportable segments". "Unallocated corporate costs" are excluded from our measurement of segment performance and include unrealized commodity derivative gains and losses and certain general corporate expenses.
Information about our operations and significant expenses by reportable segment is as follows:
| (in millions) | U.S. Refreshment Beverages | U.S. Coffee | International | Total | |||||||||||||||||||
| For the year ended December 31, 2025 | |||||||||||||||||||||||
| Net sales | $ | 10,439 | $ | 3,990 | $ | 2,174 | $ | 16,603 | |||||||||||||||
| Cost of sales | 4,217 | 2,364 | 1,083 | ||||||||||||||||||||
| SG&A expenses | 3,206 | 659 | 548 | ||||||||||||||||||||
Other segment expense (income)(1) | 77 | 5 | (3) | ||||||||||||||||||||
| Income from operations - reportable segments | $ | 2,939 | $ | 962 | $ | 546 | $ | 4,447 | |||||||||||||||
| Unallocated corporate costs | (872) | ||||||||||||||||||||||
| Income from operations | 3,575 | ||||||||||||||||||||||
| Interest expense, net | 754 | ||||||||||||||||||||||
| Other expense, net | 134 | ||||||||||||||||||||||
| Income before provision for income taxes | $ | 2,687 | |||||||||||||||||||||
(1)During the year ended December 31, 2025, Other segment items within the U.S. Refreshment Beverages segment primarily consisted of non-cash impairment charges of $78 million recorded specific to certain indefinite lived brand assets. Refer to Note 6 for additional information about these non-cash impairment charges.
| (in millions) | U.S. Refreshment Beverages | U.S. Coffee | International | Total | |||||||||||||||||||
| For the year ended December 31, 2024 | |||||||||||||||||||||||
| Net sales | $ | 9,331 | $ | 3,967 | $ | 2,053 | $ | 15,351 | |||||||||||||||
| Cost of sales | 3,608 | 2,210 | 996 | ||||||||||||||||||||
| SG&A expenses | 2,904 | 684 | 521 | ||||||||||||||||||||
Other segment expense (income)(1) | 941 | (6) | (9) | ||||||||||||||||||||
| Income from operations - reportable segments | $ | 1,878 | $ | 1,079 | $ | 545 | $ | 3,502 | |||||||||||||||
| Unallocated corporate costs | (911) | ||||||||||||||||||||||
| Income from operations | 2,591 | ||||||||||||||||||||||
| Interest expense, net | 735 | ||||||||||||||||||||||
| Other income, net | (58) | ||||||||||||||||||||||
| Income before provision for income taxes | $ | 1,914 | |||||||||||||||||||||
(1)During the year ended December 31, 2024, Other segment items within the U.S. Refreshment Beverages segment primarily consisted of non-cash impairment charges of $412 million recorded specific to certain indefinite lived brand assets and $306 million recorded to the WD reporting unit goodwill. Refer to Note 6 for additional information about these non-cash impairment charges. Other segment items within the U.S. Refreshment Beverages segment also included the $225 million termination payment to ABI for distribution rights related to the GHOST Transactions. Refer to Note 4 for additional information.
| (in millions) | U.S. Refreshment Beverages | U.S. Coffee | International | Total | |||||||||||||||||||
| For the year ended December 31, 2023 | |||||||||||||||||||||||
| Net sales | $ | 8,821 | $ | 4,071 | $ | 1,922 | $ | 14,814 | |||||||||||||||
| Cost of sales | 3,536 | 2,228 | 979 | ||||||||||||||||||||
| SG&A expenses | 2,810 | 691 | 476 | ||||||||||||||||||||
| Other segment income | (8) | (6) | (8) | ||||||||||||||||||||
| Income from operations - reportable segments | $ | 2,483 | $ | 1,158 | $ | 475 | $ | 4,116 | |||||||||||||||
| Unallocated corporate costs | (924) | ||||||||||||||||||||||
| Income from operations | 3,192 | ||||||||||||||||||||||
| Interest expense, net | 496 | ||||||||||||||||||||||
| Other income, net | (61) | ||||||||||||||||||||||
| Income before provision for income taxes | $ | 2,757 | |||||||||||||||||||||
GEOGRAPHIC DATA
The following tables present information about our operations by geographic region:
| For the Year Ended December 31, | |||||||||||||||||
| (in millions) | 2025 | 2024 | 2023 | ||||||||||||||
| Net sales | |||||||||||||||||
| U.S. | $ | 14,502 | $ | 13,368 | $ | 12,961 | |||||||||||
| Foreign | 2,101 | 1,983 | 1,853 | ||||||||||||||
| Net sales | $ | 16,603 | $ | 15,351 | $ | 14,814 | |||||||||||
| December 31, | |||||||||||
| (in millions) | 2025 | 2024 | |||||||||
| Property, plant, and equipment, net | |||||||||||
| U.S. | $ | 2,657 | $ | 2,450 | |||||||
| Foreign | 573 | 514 | |||||||||
| Total property, plant, and equipment, net | $ | 3,230 | $ | 2,964 | |||||||
MAJOR CUSTOMER
Walmart is considered a major customer, accounting for more than 10% of our total net sales, and is represented in all three of our reportable segments. The following table provides our net sales to Walmart:
| For the Year Ended December 31, | |||||||||||||||||
| (in millions) | 2025 | 2024 | 2023 | ||||||||||||||
| Net sales | |||||||||||||||||
| Walmart | $ | 2,654 | $ | 2,514 | $ | 2,476 | |||||||||||
Additionally, customers in our U.S. Refreshment Beverages and International segments buy concentrate from us, which is used in finished goods sold by our third-party bottlers to Walmart. These indirect sales further increase the concentration of risk associated with our consolidated net sales as it relates to Walmart.
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 Segments Disclosures
Segment disclosures break a company into its reportable operating units, revealing revenue, profit, and asset allocation that consolidated financial statements obscure. Under ASC 280, segments must match how the chief operating decision maker views the business, providing a window into internal management structure and resource allocation priorities.
Key signals: compare segment margins to identify which units drive profitability and which destroy value. Watch for changes in the number of reportable segments — segment aggregation or disaggregation often coincides with strategic shifts or attempts to obscure declining performance. Intersegment elimination patterns reveal internal pricing practices. The reconciliation between segment totals and consolidated figures exposes corporate overhead allocation and unallocated items. Geographic revenue concentration highlights regulatory and currency exposure. Compare segment-level capital expenditure against segment revenue to assess where management is investing for future growth versus harvesting existing assets.