Balance Sheet: Assets

The balance sheet provides creditors, investors, and analysts with information on company resources (assets) and its sources of capital (its equity and liabilities). It normally also provides information about the future earnings capacity of a company assets as well as an indication of cash flows that may come from receivables and inventories.

Assets are resources controlled by the company as a result of past events and from which future economic benefits are expected to flow to the entity.

Keurig Dr Pepper Inc., consolidated balance sheet: assets

US$ in millions

	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019	Dec 31, 2018
Cash and cash equivalents	567)	240)	75)	83)
Restricted cash and restricted cash equivalents	1)	15)	26)	46)
Trade accounts receivable, net	1,148)	1,048)	1,115)	1,150)
Inventories	894)	762)	654)	626)
Other receivables	112)	85)	65)	51)
Customer incentive programs	21)	34)	12)	12)
Derivative instruments	144)	45)	31)	9)
Prepaid marketing	12)	15)	17)	29)
Spare parts	72)	55)	49)	43)
Assets held for sale	—)	2)	165)	8)
Income tax receivable	14)	11)	4)	22)
Other	72)	76)	60)	80)
Prepaid expenses and other current assets	447)	323)	403)	254)
Current assets	3,057)	2,388)	2,273)	2,159)
Property, plant and equipment, net	2,494)	2,212)	2,028)	2,310)
Investments in unconsolidated affiliates	30)	88)	151)	186)
Goodwill	20,182)	20,184)	20,172)	20,011)
Other intangible assets, net	23,856)	23,968)	24,117)	23,967)
Customer incentive programs	59)	70)	33)	34)
Equity securities	58)	41)	40)	44)
Operating lease right-of-use assets	673)	645)	497)	—)
Derivative instruments	3)	12)	19)	95)
Equity securities without readily determinable fair values	1)	1)	1)	1)
Non-current restricted cash and restricted cash equivalents	—)	—)	10)	10)
Related party notes receivable	—)	—)	50)	17)
Other	143)	125)	98)	58)
Other non-current assets	937)	894)	748)	259)
Deferred tax assets	42)	45)	29)	26)
Non-current assets	47,541)	47,391)	47,245)	46,759)
Total assets	50,598)	49,779)	49,518)	48,918)

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 analysis of the financial data reveals several notable trends in the company's asset composition over the observed four-year period.

Liquidity and Cash Position: Cash and cash equivalents exhibited a significant increase, rising from US$83 million in 2018 to US$567 million in 2021, indicating a strengthening liquidity position. Conversely, restricted cash and equivalents declined steadily from US$46 million to US$1 million, suggesting a reduction in cash subject to restrictions.
Receivables and Inventories: Trade accounts receivable showed a mild decrease from US$1,150 million in 2018 to US$1,148 million in 2021, with a dip during the intermediate years. Other receivables increased from US$51 million to US$112 million, reflecting possibly higher short-term claims. Inventories expanded steadily from US$626 million to US$894 million, consistent with potential growth in operations or stockpiling.
Other Current Assets: Prepaid marketing expenses decreased from US$29 million to US$12 million, perhaps reflecting more efficient marketing spending. Prepaid expenses and other current assets had variability but peaked at US$447 million in 2021 from US$254 million in 2018. Customer incentive programs showed fluctuations, peaking in 2020 before decreasing. Derivative instruments increased significantly in 2021 to US$144 million from US$9 million in 2018, indicating expanded hedging or risk management activities.
Non-Current Assets: Property, plant, and equipment (net) decreased initially from US$2,310 million to US$2,028 million in 2019 before increasing to US$2,494 million in 2021, showing capital investment. Goodwill and other intangible assets remained relatively stable with minor fluctuations, maintaining values around US$20 billion and US$23.8 billion, respectively. Investments in unconsolidated affiliates declined markedly from US$186 million to US$30 million, potentially indicating divestment. Operating lease right-of-use assets appeared in 2019 and grew to US$673 million by 2021, in line with adoption of new lease accounting standards.
Other Non-Current Assets: Other non-current assets rose substantially from US$259 million in 2018 to US$937 million in 2021, reflecting possible acquisitions or increases in deferred items. Deferred tax assets increased initially to US$45 million in 2020 but slightly decreased afterwards. Equity securities increased marginally, indicating modest investment activity.
Total Asset Composition and Trends: Total assets gradually increased from US$48.9 billion in 2018 to US$50.6 billion in 2021, denoting overall growth. While current assets grew markedly driven mainly by cash and inventory expansion, non-current assets remained relatively stable with some composition shifts, such as decreased investments and increased lease assets. The stability in goodwill and intangible assets suggests limited impairment or major acquisition activity.

In summary, the data indicates improved liquidity, moderate growth in inventory levels, and evolving asset composition with notable increases in derivative instruments and lease-related assets, alongside stable intangible asset values. These shifts reflect strategic financial and operational adjustments over the period analyzed.

Assets: Selected Items

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Current Assets: Selected Items

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Keurig Dr Pepper Inc. (NASDAQ:KDP)

Balance Sheet: Assets

Assets: Selected Items

Current Assets: Selected Items