Sentences and paragraphs of KDP's Risk Factors and MD&A, 10-K 2026-02-24 against 10-K 2025-02-25.
Each links to the text at sec.gov.
RemovedRisk Factors
Substantial disruption at our manufacturing and distribution facilities could occur.
Read it in 10-K 2025-02-25 at sec.gov ↗
RemovedRisk Factors
A disruption at our manufacturing and distribution facilities could have a material adverse effect on our business, as could a disruption at the facilities of our bottlers, contract manufacturers or distributors. Disruptions could occur for many reasons, including fire, natural disasters, weather, water scarcity, manufacturing problems, disease, widespread illness, strikes, labor shortages, transportation or supply interruption, contractual dispute, government regulation, cybersecurity attacks or terrorism. Moreover, if demand increases beyond our production capabilities, we would need to expand our capabilities internally or acquire additional capacity. Alternative facilities with sufficient capacity or capabilities may not be available, may cost substantially more than existing facilities or may take a significant time to start production, each of which could negatively affect our business and financial performance.
Read it in 10-K 2025-02-25 at sec.gov ↗
RemovedRisk Factors
We cannot guarantee that our share repurchase program will be fully consummated or that our share repurchase program will enhance long-term stockholder value.
Read it in 10-K 2025-02-25 at sec.gov ↗
RemovedRisk Factors
In October 2021, our Board authorized KDP to repurchase up to $4 billion of our outstanding common stock over a four-year period, beginning on January 1, 2022, potentially enabling us to return value to shareholders. Our repurchase program does not obligate us to repurchase any specific dollar amount or to acquire any specific number of shares. Under the terms of our share repurchase program, shares may be repurchased from time to time in open market transactions at prevailing market prices, in privately negotiated transactions, or by other means (including through the use of trading plans intended to qualify under Rule 10b5-1 under the Exchange Act) in accordance with federal securities laws. We may fund our share repurchases through cash flow from operations, borrowings, a combination of the two, or other sources of liquidity. The actual manner, timing, amount, value and counterparties of any repurchases under the program will be determined at our discretion and will depend on a number of factors, including the market price of our common stock, trading volume, other capital management objectives and opportunities, applicable legal requirements, applicable tax effects, and general market and economic conditions.
Read it in 10-K 2025-02-25 at sec.gov ↗
RemovedRisk Factors
We cannot guarantee that we will repurchase shares (or the terms or amount of any such repurchase) or conduct future share repurchase programs, and we cannot guarantee that any such programs will result in long-term increases to shareholder value. The existence of our stock repurchase program could also cause the price of our common stock to be higher than it would be in the absence of such a program and could potentially reduce the market liquidity for our common stock. Additionally, significant changes in laws or regulations may reduce our ability or inclination to take advantage of our share repurchase program.
Read it in 10-K 2025-02-25 at sec.gov ↗
RemovedMD&A
KDP operates as an integrated brand owner, manufacturer, and distributor. We believe our integrated business model strengthens our route-to-market and provides opportunities for net sales and profit growth through the alignment of the economic interests of our brand ownership and our manufacturing and distribution businesses through both our DSD system and our WD system. We market and sell our products to retailers, including supermarkets, mass merchandisers, club stores, pure-play e-commerce retailers, and office superstores; to restaurants, hotel chains, office product and coffee distributors, and partner brand owners; and directly to consumers through our website. Our integrated business model enables us to be more flexible and responsive to the changing needs of our large retail customers and allows us to more fully leverage our scale and reduce costs by creating greater geographic manufacturing and distribution coverage.
Read it in 10-K 2025-02-25 at sec.gov ↗
RemovedMD&A
On October 23, 2024, we entered into a definitive agreement with GHOST, and certain other parties named therein, to acquire a controlling interest in GHOST. Founded in 2016, GHOST is a lifestyle sports nutrition business with a portfolio anchored by GHOST Energy, a leading ready-to-drink energy brand.
Read it in 10-K 2025-02-25 at sec.gov ↗
RemovedMD&A
Under the terms of the agreement, we initially purchased a 60% stake in GHOST for aggregate consideration of approximately $1 billion on December 31, 2024. We also entered into an agreement requiring us to purchase the remaining equity interests in GHOST in 2028. The initial payment was funded primarily by proceeds drawn from the Term Loan Agreement. We also executed an agreement with GHOST and ABI which transfers the distribution rights for GHOST products from ABI to us, effective March 3, 2025, for a termination payment to ABI of $225 million which will be paid during the first quarter of 2025. Refer to Note 4 of the Notes to our Consolidated Financial Statements for additional information.
Read it in 10-K 2025-02-25 at sec.gov ↗
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RemovedMD&A
On January 31, 2025, we repaid the amount outstanding under the Term Loan Agreement using proceeds from commercial paper.
Read it in 10-K 2025-02-25 at sec.gov ↗
RemovedMD&A
We eliminate from our financial results all intercompany transactions between entities included in our consolidated financial statements and the intercompany transactions with our equity method investees.
Read it in 10-K 2025-02-25 at sec.gov ↗
RemovedMD&A
For the Year Ended December 31, Dollar Percentage (in millions, except per share amounts) 2024 2023 Change Change Net sales $ 15,351 $ 14,814 $ 537 3.6% Cost of sales 6,822 6,734 88 1.3 Gross profit 8,529 8,080 449 5.6 Selling, general, and administrative expenses 5,013 4,912 101 2.1 Impairment of goodwill 306 — 306 NM Impairment of other intangible assets 412 2 410 NM Other operating expense (income), net 207 (26) 233 NM Income from operations 2,591 3,192 (601) (18.8) Interest expense, net 735 496 239 48.2 Impairment of investments and note receivable 2 — 2 NM Other (income) expense, net (60) (61) 1 NM Income before provision for income taxes 1,914 2,757 (843) (30.6) Provision for income taxes 473 576 (103) (17.9) Net income $ 1,441 $ 2,181 $ (740) (33.9)% Earnings per common share: Basic $ 1.06 $ 1.56 $ (0.50) (32.1)% Diluted 1.05 1.55 (0.50) (32.3)% Gross margin 55.6 % 54.5 % 110 bps Operating margin 16.9 % 21.5 % (460) bps Effective tax rate 24.7 % 20.9 % 380 bps
Read it in 10-K 2025-02-25 at sec.gov ↗
RemovedMD&A
Sales Volume. The following table provides the change in sales volume compared to the prior year:
Read it in 10-K 2025-02-25 at sec.gov ↗
RemovedMD&A
The following table provides selected information about our U.S. Refreshment Beverages segment’s results:
Read it in 10-K 2025-02-25 at sec.gov ↗
RemovedMD&A
The following table provides selected information about our U.S. Coffee segment’s results:
Read it in 10-K 2025-02-25 at sec.gov ↗
RemovedMD&A
Sales Volume. K-Cup pod volume was flat for the year ended December 31, 2024 compared to the prior year period. Appliance volume increased 7.3% in the year ended December 31, 2024, driven by Keurig market share momentum and improving coffeemaker category trends.
Read it in 10-K 2025-02-25 at sec.gov ↗
RemovedMD&A
The following table provides selected information about our International segment’s results:
Read it in 10-K 2025-02-25 at sec.gov ↗
RemovedMD&A
Sales Volume. The following table provides the percentage change in sales volumes for the International segment compared to the prior year period:
Read it in 10-K 2025-02-25 at sec.gov ↗