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).
The total carrying amount of debt exhibits a consistent downward trend over the four-year period from 2018 to 2021, indicating a systematic reduction in the overall debt burden.
- Aggregate Debt Profile
- Total debt, comprising short-term borrowings, long-term obligations, and finance lease liabilities, decreased from US$ 15,990 million in 2018 to US$ 12,582 million by the end of 2021. This represents a cumulative reduction of approximately 21.3% over the period.
- Long-Term Obligations
- Long-term obligations, excluding the current portion, served as the primary driver of the total debt balance. This figure declined steadily from US$ 14,201 million in 2018 to a low of US$ 11,143 million in 2020, before experiencing a modest increase to US$ 11,578 million in 2021.
- Short-Term Liquidity and Current Obligations
- Short-term borrowings and the current portion of long-term obligations displayed significant volatility. The balance increased from US$ 1,458 million in 2018 to a peak of US$ 2,345 million in 2020, followed by a sharp contraction to US$ 304 million in 2021.
- Finance Lease Liabilities
- A contrasting trend is observed in finance lease liabilities, which increased across the period. Current lease liabilities rose from US$ 26 million in 2018 to US$ 79 million in 2021. More significantly, non-current finance lease liabilities increased from US$ 305 million in 2018 to US$ 621 million in 2021, with the most substantial growth occurring between 2020 and 2021.
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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%