Name: Keurig Dr Pepper Inc. (NASDAQ:KDP) | Cash Flow Statement
Creator: Stock Analysis on Net

Cash Flow Statement

The cash flow statement provides information about a company cash receipts and cash payments during an accounting period, showing how these cash flows link the ending cash balance to the beginning balance shown on the company balance sheet.

The cash flow statement consists of three parts: cash flows provided by (used in) operating activities, cash flows provided by (used in) investing activities, and cash flows provided by (used in) financing activities.

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Keurig Dr Pepper Inc., consolidated cash flow statement

US$ in millions

12 months ended:	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019	Dec 31, 2018
Net income attributable to KDP	2,146)	1,325)	1,254)	589)
Depreciation expense	410)	362)	358)	233)
Amortization of intangibles	134)	133)	126)	121)
Other amortization expense	164)	158)	214)	108)
Provision for sales returns	63)	54)	43)	54)
Deferred income taxes	31)	(51)	(23)	(81)
Employee stock-based compensation expense	88)	85)	64)	35)
Loss on early extinguishment of debt	105)	4)	11)	13)
Gain on sale of equity method investment	(524)	—)	—)	—)
Gain on step acquisition of unconsolidated subsidiaries	—)	—)	—)	(18)
(Gain) loss on disposal of property, plant and equipment	(75)	(36)	(14)	5)
Unrealized (gain) loss on foreign currency	9)	(1)	(24)	28)
Unrealized (gain) loss on derivatives	(70)	8)	36)	49)
Equity in losses of unconsolidated affiliates	5)	20)	51)	17)
Impairment of intangible assets	—)	67)	—)	—)
Impairment on investments and note receivable of unconsolidated affiliates	17)	102)	—)	—)
Other, net	20)	60)	12)	3)
Trade accounts receivable	(152)	(5)	(7)	82)
Inventories	(133)	(107)	(24)	185)
Income taxes receivable and payables, net	114)	(91)	36)	71)
Other current and non-current assets	(243)	(435)	(324)	(49)
Accounts payable and accrued expenses	762)	624)	583)	206)
Other current and non-current liabilities	3)	180)	102)	(38)
Net change in operating assets and liabilities	351)	166)	366)	457)
Adjustments to reconcile net income to net cash provided by operating activities	728)	1,131)	1,220)	1,024)
Net cash provided by operating activities	2,874)	2,456)	2,474)	1,613)
Proceeds from sale of investment in unconsolidated affiliates	578)	—)	—)	—)
Purchases of property, plant and equipment	(423)	(461)	(330)	(180)
Proceeds from sales of property, plant and equipment	122)	203)	247)	3)
Purchases of intangibles	(32)	(56)	(35)	—)
Acquisitions of businesses	—)	—)	(8)	(19,114)
Cash acquired in acquisitions	—)	—)	—)	169)
Issuance of related party note receivable	(19)	(6)	(32)	(11)
Investments in unconsolidated affiliates	—)	(5)	(16)	(39)
Proceeds from capital distributions from investments in unconsolidated affiliates	—)	—)	—)	35)
Other, net	(16)	9)	24)	6)
Net cash (used in) provided by investing activities	210)	(316)	(150)	(19,131)
Proceeds from issuance of Notes	2,150)	1,500)	—)	8,000)
Repayment of Notes	(3,595)	(250)	(250)	—)
Proceeds from issuance of commercial paper	5,406)	7,288)	16,197)	1,080)
Repayments of commercial paper	(5,257)	(8,534)	(16,030)	—)
Proceeds from KDP Revolver	—)	1,850)	—)	1,900)
Repayment of KDP Revolver	—)	(1,850)	—)	(1,900)
Proceeds from term loan	—)	—)	2,000)	2,700)
Repayments of term loan	(425)	(955)	(3,203)	(3,447)
Proceeds from issuance of common stock	140)	—)	—)	9,000)
Proceeds from structured payables	156)	171)	330)	526)
Payments on structured payables	(167)	(341)	(531)	—)
Cash dividends paid	(955)	(846)	(844)	(232)
Tax withholdings related to net share settlements	(125)	—)	—)	—)
Payments on finance leases	(54)	(52)	(38)	(17)
Cash contributions from redeemable non-controlling interest shareholders	—)	—)	—)	18)
Proceeds from controlling shareholder stock transactions	—)	29)	—)	—)
Other, net	(36)	—)	5)	(51)
Net cash provided by (used in) financing activities	(2,762)	(1,990)	(2,364)	17,577)
Effect of exchange rate changes	(9)	(6)	12)	(15)
Net change from operating, investing and financing activities	313)	144)	(28)	44)
Beginning of period	255)	111)	139)	95)
End of period	568)	255)	111)	139)

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 financial trajectory between 2018 and 2021 is characterized by significant growth in operational profitability and a strategic transition from aggressive acquisition-led expansion to a focus on shareholder returns and debt management.

Operating Cash Flow Performance: Net income attributable to the company exhibited a consistent and strong upward trend, increasing from 589 million in 2018 to 2,146 million in 2021. This growth is mirrored in the net cash provided by operating activities, which rose from 1,613 million in 2018 to 2,874 million in 2021. The reconciliation between net income and operating cash is heavily influenced by increasing depreciation and amortization expenses, which rose from 354 million in 2018 to 544 million in 2021, indicating sustained investment in long-term assets. Working capital management shows a notable increase in accounts payable and accrued expenses, rising from 206 million in 2018 to 762 million in 2021, which has served as a source of cash liquidity.
Investing Activities and Capital Expenditure: Investing activities were dominated by a singular massive event in 2018, involving a business acquisition of 19,114 million. Following this period, investing activities shifted toward organic growth and asset optimization. Purchases of property, plant, and equipment increased steadily from 180 million in 2018 to a peak of 461 million in 2020, before slightly moderating to 423 million in 2021. A notable pivot occurred in 2021, where net cash from investing activities became positive (210 million), driven primarily by 578 million in proceeds from the sale of investments in unconsolidated affiliates.
Financing Activities and Capital Structure: Financing activities transitioned from a phase of heavy capital raising in 2018 to a phase of capital return and debt reduction. In 2018, net cash provided by financing activities was 17,577 million, fueled by the issuance of notes (8,000 million) and common stock (9,000 million) to fund acquisitions. From 2019 through 2021, the company shifted to net cash outflows in financing, ranging from 1,990 million to 2,762 million annually. This trend is highlighted by a significant increase in cash dividends paid, which grew from 232 million in 2018 to 955 million in 2021. Additionally, there is evidence of active debt refinancing and repayment, particularly in 2021 with a 3,595 million repayment of notes.
Liquidity and Cash Position: The end-of-period cash balance remained relatively stable between 2018 and 2020, fluctuating between 111 million and 255 million. However, a substantial increase was observed by the end of 2021, with the cash balance rising to 568 million. This increase is the result of strong operating cash flows and the liquidity generated from the sale of investments, which outweighed the outflows dedicated to dividends and debt repayments.

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