Analysis of Debt
Total Debt (Carrying Amount)
Keurig Dr Pepper Inc., balance sheet: debt
US$ in millions
Based on: 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31).
- Short-term borrowings and current portion of long-term obligations
- The figures show a fluctuating trend over the four-year period. Beginning at 1,458 million US dollars at the end of 2018, this liability increased to 1,593 million in 2019 and peaked significantly at 2,345 million in 2020. However, there was a substantial decline in 2021, dropping sharply to 304 million. This suggests a notable reduction in short-term debt obligations by the end of 2021.
- Current finance lease liability
- This liability exhibited a gradual increase throughout the period, starting at 26 million in 2018, moving up to 41 million in 2019, and slightly rising to 44 million in 2020. In 2021, it sharply increased to 79 million, indicating an increased reliance on finance leases in the short term during the latest year reported.
- Long-term obligations, excluding current portion
- The long-term obligations demonstrated a downward trend from 2018 to 2020, beginning at 14,201 million and decreasing to 11,143 million by 2020. This decline indicates a gradual reduction in long-term debt over those years. Nevertheless, there was a slight rebound in 2021, with the obligations rising to 11,578 million, suggesting a modest increase in long-term liabilities after the prior reductions.
- Non-current finance lease liability
- The non-current finance lease liability displayed some variability without a clear linear pattern from 2018 through 2020. The amount decreased from 305 million in 2018 to 269 million in 2019 but rose again to 298 million in 2020. The figure then surged notably to 621 million in 2021, more than doubling the prior year’s amount, highlighting a significant increase in long-term finance lease obligations in 2021.
- Total short-term borrowings, long-term obligations (including current portion), and finance lease liability (carrying amount)
- The total carrying amount of debt and finance lease liabilities declined consistently each year from 2018 through 2021. Starting at 15,990 million in 2018, the total decreased to 14,730 million in 2019 and to 13,830 million in 2020. This downward trend continued to 12,582 million in 2021, reflecting an overall reduction in the company’s combined debt and finance lease liabilities over the observed period.
Total Debt (Fair Value)
| Dec 31, 2021 | |
|---|---|
| Selected Financial Data (US$ in millions) | |
| Commercial paper notes | 149) |
| Senior unsecured notes | 13,078) |
| Term loans | —) |
| Finance lease liability | 700) |
| Total short-term borrowings, long-term obligations (including current portion), and finance lease liability (fair value) | 13,927) |
| Financial Ratio | |
| Debt, fair value to carrying amount ratio | 1.11 |
Based on: 10-K (reporting date: 2021-12-31).
Weighted-average Interest Rate on Debt
Weighted-average interest rate on debt: 3.67%
| Interest rate | Debt amount1 | Interest rate × Debt amount | Weighted-average interest rate2 |
|---|---|---|---|
| 0.25% | 149) | —) | |
| 4.08% | 1,000) | 41) | |
| 3.13% | 500) | 16) | |
| 0.75% | 1,150) | 9) | |
| 4.42% | 1,000) | 44) | |
| 3.40% | 500) | 17) | |
| 2.55% | 400) | 10) | |
| 3.43% | 500) | 17) | |
| 4.60% | 2,000) | 92) | |
| 3.20% | 750) | 24) | |
| 2.25% | 500) | 11) | |
| 7.45% | 125) | 9) | |
| 4.99% | 500) | 25) | |
| 4.50% | 550) | 25) | |
| 4.42% | 400) | 18) | |
| 5.09% | 750) | 38) | |
| 3.80% | 750) | 29) | |
| 3.35% | 500) | 17) | |
| 3.60% | 700) | 25) | |
| Total | 12,724) | 466) | |
| 3.67% | |||
Based on: 10-K (reporting date: 2021-12-31).
1 US$ in millions
2 Weighted-average interest rate = 100 × 466 ÷ 12,724 = 3.67%