Stock Analysis on Net
Stock Analysis on Net

Keurig Dr Pepper Inc. (NASDAQ:KDP)

This company has been moved to the archive! The financial data has not been updated since July 28, 2022.

Analysis of Income Taxes

Microsoft Excel

Income Tax Expense (Benefit)

Keurig Dr Pepper Inc., income tax expense (benefit), continuing operations

US$ in millions

Microsoft Excel
12 months ended: Dec 31, 2021 Dec 31, 2020 Dec 31, 2019 Dec 31, 2018
Federal 386 297 303 183
State 136 103 98 62
International 100 79 62 38
Current provision 622 479 463 283
Federal 41 (31) (31) (24)
State (8) (6) 1 (50)
International (2) (14) 7 (7)
Deferred provision 31 (51) (23) (81)
Provision for income taxes 653 428 440 202

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).

Item Description The company
Current provision Amount of current income tax expense (benefit) pertaining to taxable income (loss) from continuing operations. Keurig Dr Pepper Inc. current provision increased from 2019 to 2020 and from 2020 to 2021.
Deferred provision Amount of deferred income tax expense (benefit) pertaining to income (loss) from continuing operations. Keurig Dr Pepper Inc. deferred provision decreased from 2019 to 2020 but then increased from 2020 to 2021 exceeding 2019 level.
Provision for income taxes Amount of current income tax expense (benefit) and deferred income tax expense (benefit) pertaining to continuing operations. Keurig Dr Pepper Inc. provision for income taxes decreased from 2019 to 2020 but then increased from 2020 to 2021 exceeding 2019 level.

Effective Income Tax Rate (EITR)

Keurig Dr Pepper Inc., effective income tax rate (EITR) reconciliation

Microsoft Excel
Dec 31, 2021 Dec 31, 2020 Dec 31, 2019 Dec 31, 2018
U.S. federal statutory income tax rate 21.00% 21.00% 21.00% 21.00%
State income taxes, net 3.80% 4.00% 3.70% 5.40%
U.S. federal domestic manufacturing benefit 0.00% 0.00% 0.00% -1.50%
Impact of non-U.S. Operations 0.10% 0.20% 0.30% 0.10%
Tax credits -0.80% -1.30% -0.90% -0.90%
Valuation allowance for deferred tax assets -0.10% -1.10% 0.00% 2.00%
U.S. taxation of foreign earnings 0.70% 1.60% 1.50% 1.80%
Deferred rate change -0.70% 0.50% -0.30% -4.90%
State refund 0.00% 0.00% 0.00% -0.40%
Uncertain tax positions 0.00% -1.30% 0.00% 0.60%
U.S. federal provision to return -0.30% 0.10% -0.60% -0.30%
Excess tax deductions on stock-based compensation -1.00% 0.00% 0.00% 0.00%
Transaction costs 0.00% 0.00% 0.00% 1.40%
Impact of the TCJA 0.00% 0.00% 0.00% 0.50%
Other 0.60% 0.70% 1.30% 0.70%
Effective income tax rate 23.30% 24.40% 26.00% 25.50%

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).

Item Description The company
Effective income tax rate Percentage of current income tax expense (benefit) and deferred income tax expense (benefit) pertaining to continuing operations. Keurig Dr Pepper Inc. effective income tax rate decreased from 2019 to 2020 and from 2020 to 2021.

Components of Deferred Tax Assets and Liabilities

Keurig Dr Pepper Inc., components of deferred tax assets and liabilities

US$ in millions

Microsoft Excel
Dec 31, 2021 Dec 31, 2020 Dec 31, 2019 Dec 31, 2018
Operating lease liability 166 161 67 —
Net operating losses carryforwards 43 46 48 53
Tax credit carryforwards 49 54 56 58
Accrued expenses 125 153 118 96
Share-based compensation 32 36 24 21
Multi-year upfront payments 13 15 18 21
Equity method investments 50 29 — —
Other 41 27 36 39
Deferred tax assets 519 521 367 288
Valuation allowances (48) (51) (71) (79)
Deferred tax assets, net of valuation allowances 471 470 296 209
Brands, trade names and other intangible assets (5,909) (5,916) (5,913) (5,757)
Property, plant and equipment (314) (293) (263) (277)
Derivative instruments (18) (38) (48) (56)
Right of use assets (164) (159) (64) —
Equity method investments — — (1) (8)
Other (10) (12) (8) (8)
Deferred tax liabilities (6,415) (6,418) (6,297) (6,106)
Net deferred tax assets (liabilities) (5,944) (5,948) (6,001) (5,897)

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).

Item Description The company
Deferred tax assets Amount before allocation of valuation allowances of deferred tax asset attributable to deductible temporary differences and carryforwards. Keurig Dr Pepper Inc. deferred tax assets increased from 2019 to 2020 but then slightly decreased from 2020 to 2021.
Deferred tax assets, net of valuation allowances Amount after allocation of valuation allowances of deferred tax asset attributable to deductible temporary differences and carryforwards. Keurig Dr Pepper Inc. deferred tax assets, net of valuation allowances increased from 2019 to 2020 and from 2020 to 2021.
Net deferred tax assets (liabilities) Amount, after allocation of valuation allowances and deferred tax liability, of deferred tax asset attributable to deductible differences and carryforwards, without jurisdictional netting. Keurig Dr Pepper Inc. net deferred tax assets (liabilities) increased from 2019 to 2020 and from 2020 to 2021.

Deferred Tax Assets and Liabilities, Classification

Keurig Dr Pepper Inc., deferred tax assets and liabilities, classification

US$ in millions

Microsoft Excel
Dec 31, 2021 Dec 31, 2020 Dec 31, 2019 Dec 31, 2018
Deferred tax assets 42 45 29 26
Deferred tax liabilities 5,986 5,993 6,030 5,923

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).

Item Description The company
Deferred tax assets Amount, after allocation of valuation allowances and deferred tax liability, of deferred tax asset attributable to deductible differences and carryforwards, with jurisdictional netting and classified as noncurrent. Keurig Dr Pepper Inc. deferred tax assets increased from 2019 to 2020 but then slightly decreased from 2020 to 2021.
Deferred tax liabilities Amount, after deferred tax asset, of deferred tax liability attributable to taxable differences, with jurisdictional netting and classified as noncurrent. Keurig Dr Pepper Inc. deferred tax liabilities decreased from 2019 to 2020 and from 2020 to 2021.

Adjustments to Financial Statements: Removal of Deferred Taxes

Keurig Dr Pepper Inc., adjustments to financial statements

US$ in millions

Microsoft Excel
Dec 31, 2021 Dec 31, 2020 Dec 31, 2019 Dec 31, 2018
Adjustment to Total Assets
Total assets (as reported) 50,598 49,779 49,518 48,918
Less: Noncurrent deferred tax assets, net 42 45 29 26
Total assets (adjusted) 50,556 49,734 49,489 48,892
Adjustment to Total Liabilities
Total liabilities (as reported) 25,626 25,949 26,261 26,385
Less: Noncurrent deferred tax liabilities, net 5,986 5,993 6,030 5,923
Total liabilities (adjusted) 19,640 19,956 20,231 20,462
Adjustment to Stockholders’ Equity
Stockholders’ equity (as reported) 24,972 23,829 23,257 22,533
Less: Net deferred tax assets (liabilities) (5,944) (5,948) (6,001) (5,897)
Stockholders’ equity (adjusted) 30,916 29,777 29,258 28,430
Adjustment to Net Income Attributable To KDP
Net income attributable to KDP (as reported) 2,146 1,325 1,254 586
Add: Deferred income tax expense (benefit) 31 (51) (23) (81)
Net income attributable to KDP (adjusted) 2,177 1,274 1,231 505

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).

Keurig Dr Pepper Inc., Financial Data: Reported vs. Adjusted

Adjusted Financial Ratios: Removal of Deferred Taxes (Summary)

Keurig Dr Pepper Inc., adjusted financial ratios

Microsoft Excel
Dec 31, 2021 Dec 31, 2020 Dec 31, 2019 Dec 31, 2018
Net Profit Margin
Reported net profit margin 16.92% 11.40% 11.28% 7.87%
Adjusted net profit margin 17.16% 10.97% 11.07% 6.79%
Total Asset Turnover
Reported total asset turnover 0.25 0.23 0.22 0.15
Adjusted total asset turnover 0.25 0.23 0.22 0.15
Financial Leverage
Reported financial leverage 2.03 2.09 2.13 2.17
Adjusted financial leverage 1.64 1.67 1.69 1.72
Return on Equity (ROE)
Reported ROE 8.59% 5.56% 5.39% 2.60%
Adjusted ROE 7.04% 4.28% 4.21% 1.78%
Return on Assets (ROA)
Reported ROA 4.24% 2.66% 2.53% 1.20%
Adjusted ROA 4.31% 2.56% 2.49% 1.03%

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).

Financial ratio Description The company
Adjusted net profit margin An indicator of profitability, calculated as adjusted net income divided by total revenue. Keurig Dr Pepper Inc. adjusted net profit margin ratio deteriorated from 2019 to 2020 but then improved from 2020 to 2021 exceeding 2019 level.
Adjusted total asset turnover An activity ratio calculated as total revenue divided by adjusted total assets. Keurig Dr Pepper Inc. adjusted total asset turnover ratio improved from 2019 to 2020 and from 2020 to 2021.
Adjusted financial leverage A measure of financial leverage calculated as adjusted total assets divided by adjusted total equity.
Financial leverage is the extent to which a company can effect, through the use of debt, a proportional change in the return on common equity that is greater than a given proportional change in operating income.		 Keurig Dr Pepper Inc. adjusted financial leverage ratio decreased from 2019 to 2020 and from 2020 to 2021.
Adjusted ROE A profitability ratio calculated as adjusted net income divided by adjusted shareholders’ equity. Keurig Dr Pepper Inc. adjusted ROE improved from 2019 to 2020 and from 2020 to 2021.
Adjusted ROA A profitability ratio calculated as adjusted net income divided by adjusted total assets. Keurig Dr Pepper Inc. adjusted ROA improved from 2019 to 2020 and from 2020 to 2021.

Keurig Dr Pepper Inc., Financial Ratios: Reported vs. Adjusted

Adjusted Net Profit Margin

Microsoft Excel
Dec 31, 2021 Dec 31, 2020 Dec 31, 2019 Dec 31, 2018
As Reported
Selected Financial Data (US$ in millions)
Net income attributable to KDP 2,146 1,325 1,254 586
Net sales 12,683 11,618 11,120 7,442
Profitability Ratio
Net profit margin1 16.92% 11.40% 11.28% 7.87%
Adjusted for Deferred Taxes
Selected Financial Data (US$ in millions)
Adjusted net income attributable to KDP 2,177 1,274 1,231 505
Net sales 12,683 11,618 11,120 7,442
Profitability Ratio
Adjusted net profit margin2 17.16% 10.97% 11.07% 6.79%

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).

2021 Calculations

1 Net profit margin = 100 × Net income attributable to KDP ÷ Net sales
= 100 × 2,146 ÷ 12,683 = 16.92%

2 Adjusted net profit margin = 100 × Adjusted net income attributable to KDP ÷ Net sales
= 100 × 2,177 ÷ 12,683 = 17.16%

Profitability ratio Description The company
Adjusted net profit margin An indicator of profitability, calculated as adjusted net income divided by total revenue. Keurig Dr Pepper Inc. adjusted net profit margin ratio deteriorated from 2019 to 2020 but then improved from 2020 to 2021 exceeding 2019 level.

Adjusted Total Asset Turnover

Microsoft Excel
Dec 31, 2021 Dec 31, 2020 Dec 31, 2019 Dec 31, 2018
As Reported
Selected Financial Data (US$ in millions)
Net sales 12,683 11,618 11,120 7,442
Total assets 50,598 49,779 49,518 48,918
Activity Ratio
Total asset turnover1 0.25 0.23 0.22 0.15
Adjusted for Deferred Taxes
Selected Financial Data (US$ in millions)
Net sales 12,683 11,618 11,120 7,442
Adjusted total assets 50,556 49,734 49,489 48,892
Activity Ratio
Adjusted total asset turnover2 0.25 0.23 0.22 0.15

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).

2021 Calculations

1 Total asset turnover = Net sales ÷ Total assets
= 12,683 ÷ 50,598 = 0.25

2 Adjusted total asset turnover = Net sales ÷ Adjusted total assets
= 12,683 ÷ 50,556 = 0.25

Activity ratio Description The company
Adjusted total asset turnover An activity ratio calculated as total revenue divided by adjusted total assets. Keurig Dr Pepper Inc. adjusted total asset turnover ratio improved from 2019 to 2020 and from 2020 to 2021.

Adjusted Financial Leverage

Microsoft Excel
Dec 31, 2021 Dec 31, 2020 Dec 31, 2019 Dec 31, 2018
As Reported
Selected Financial Data (US$ in millions)
Total assets 50,598 49,779 49,518 48,918
Stockholders’ equity 24,972 23,829 23,257 22,533
Solvency Ratio
Financial leverage1 2.03 2.09 2.13 2.17
Adjusted for Deferred Taxes
Selected Financial Data (US$ in millions)
Adjusted total assets 50,556 49,734 49,489 48,892
Adjusted stockholders’ equity 30,916 29,777 29,258 28,430
Solvency Ratio
Adjusted financial leverage2 1.64 1.67 1.69 1.72

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).

2021 Calculations

1 Financial leverage = Total assets ÷ Stockholders’ equity
= 50,598 ÷ 24,972 = 2.03

2 Adjusted financial leverage = Adjusted total assets ÷ Adjusted stockholders’ equity
= 50,556 ÷ 30,916 = 1.64

Solvency ratio Description The company
Adjusted financial leverage A measure of financial leverage calculated as adjusted total assets divided by adjusted total equity.
Financial leverage is the extent to which a company can effect, through the use of debt, a proportional change in the return on common equity that is greater than a given proportional change in operating income.		 Keurig Dr Pepper Inc. adjusted financial leverage ratio decreased from 2019 to 2020 and from 2020 to 2021.

Adjusted Return on Equity (ROE)

Microsoft Excel
Dec 31, 2021 Dec 31, 2020 Dec 31, 2019 Dec 31, 2018
As Reported
Selected Financial Data (US$ in millions)
Net income attributable to KDP 2,146 1,325 1,254 586
Stockholders’ equity 24,972 23,829 23,257 22,533
Profitability Ratio
ROE1 8.59% 5.56% 5.39% 2.60%
Adjusted for Deferred Taxes
Selected Financial Data (US$ in millions)
Adjusted net income attributable to KDP 2,177 1,274 1,231 505
Adjusted stockholders’ equity 30,916 29,777 29,258 28,430
Profitability Ratio
Adjusted ROE2 7.04% 4.28% 4.21% 1.78%

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).

2021 Calculations

1 ROE = 100 × Net income attributable to KDP ÷ Stockholders’ equity
= 100 × 2,146 ÷ 24,972 = 8.59%

2 Adjusted ROE = 100 × Adjusted net income attributable to KDP ÷ Adjusted stockholders’ equity
= 100 × 2,177 ÷ 30,916 = 7.04%

Profitability ratio Description The company
Adjusted ROE A profitability ratio calculated as adjusted net income divided by adjusted shareholders’ equity. Keurig Dr Pepper Inc. adjusted ROE improved from 2019 to 2020 and from 2020 to 2021.

Adjusted Return on Assets (ROA)

Microsoft Excel
Dec 31, 2021 Dec 31, 2020 Dec 31, 2019 Dec 31, 2018
As Reported
Selected Financial Data (US$ in millions)
Net income attributable to KDP 2,146 1,325 1,254 586
Total assets 50,598 49,779 49,518 48,918
Profitability Ratio
ROA1 4.24% 2.66% 2.53% 1.20%
Adjusted for Deferred Taxes
Selected Financial Data (US$ in millions)
Adjusted net income attributable to KDP 2,177 1,274 1,231 505
Adjusted total assets 50,556 49,734 49,489 48,892
Profitability Ratio
Adjusted ROA2 4.31% 2.56% 2.49% 1.03%

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).

2021 Calculations

1 ROA = 100 × Net income attributable to KDP ÷ Total assets
= 100 × 2,146 ÷ 50,598 = 4.24%

2 Adjusted ROA = 100 × Adjusted net income attributable to KDP ÷ Adjusted total assets
= 100 × 2,177 ÷ 50,556 = 4.31%

Profitability ratio Description The company
Adjusted ROA A profitability ratio calculated as adjusted net income divided by adjusted total assets. Keurig Dr Pepper Inc. adjusted ROA improved from 2019 to 2020 and from 2020 to 2021.