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.

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).

Net Income and Profitability: Net income attributable to the company exhibited a consistent upward trend from 2018 through 2021, increasing significantly from $589 million in 2018 to $2,146 million in 2021. This indicates improving profitability over the four-year period.
Depreciation and Amortization Expenses: Depreciation expense increased steadily from $233 million in 2018 to $410 million in 2021, reflecting ongoing capital asset usage or acquisitions. Amortization of intangibles remained relatively stable, rising slightly from $121 million to $134 million over the same timeframe. Other amortization expenses showed volatility, peaking in 2019 at $214 million before declining to $164 million in 2021.
Unusual and Non-recurring Items: The loss on early extinguishment of debt presented a notable spike in 2021, reaching $105 million compared to lower amounts in previous years. A significant gain from the sale of an equity method investment was recorded in 2021 (-$524 million, negative indicating gain), a non-recurring event impacting that year's financial results. There were impairments recorded in 2020 and 2021, including $67 million impairment of intangible assets in 2020 and impairments on investments in unconsolidated affiliates amounting to $102 million in 2020 and $17 million in 2021.
Working Capital Components: Trade accounts receivable showed a decreasing trend, moving from a positive $82 million in 2018 to negative $152 million in 2021, suggesting improved collections or changes in credit policy. Inventories also declined notably, indicating possible operational efficiencies or inventory management changes. Accounts payable and accrued expenses increased consistently from $206 million to $762 million, potentially reflecting extended payment terms or increased operational scale. Other current and non-current assets remained negative or reduced, while liabilities showed some fluctuations with an increase then a sharp decrease in 2021.
Operating Cash Flows: Net cash provided by operating activities increased steadily from $1,613 million in 2018 to $2,874 million in 2021, highlighting improved cash generation from core operations. Adjustments to reconcile net income to operating cash flows remained relatively consistent but decreased in 2021.
Investing Activities: Investing activities were characterized by substantial cash outflows in 2018 (-$19,131 million), largely attributed to acquisitions. In subsequent years, investing cash flows were more moderate, turning positive in 2021 at $210 million, reflecting proceeds from sale of investments such as unconsolidated affiliates. Purchases of property, plant, and equipment varied but remained significant, while acquisitions of businesses notably decreased after 2018.
Financing Activities: Financing activities reflected a significant inflow of $17,577 million in 2018, mainly due to issuance of stock and debt for acquisitions or expansion. However, from 2019 onward, financing cash flows were negative, indicating repayments of debt and payment of dividends. Notably, repayment of notes increased substantially in 2021, as did the cash dividends paid, showing increased returns to shareholders and debt reduction efforts. The issuance and repayment of commercial paper and term loans demonstrated active debt management throughout the period.
Liquidity Position: Cash and cash equivalents at the end of each period showed growth, rising from $139 million in 2018 to $568 million in 2021, indicating an improving liquidity position. The net change in cash flows, combining operating, investing, and financing activities, also supported this positive trend, particularly in 2020 and 2021.
Other Observations: Employee stock-based compensation expenses increased over time, indicating potentially greater equity incentives for employees. The effect of exchange rate changes was relatively minor over the years. Overall, the financial data suggest that the company managed to grow profitability and operating cash flows while actively managing capital expenditures and financing obligations.

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Keurig Dr Pepper Inc. (NASDAQ:KDP)

Cash Flow Statement