Item 1. Financial Statements (Unaudited)

KEURIG DR PEPPER INC.

CONDENSED CONSOLIDATED STATEMENTS OF INCOME

(UNAUDITED)

									First Quarter
(in millions, except per share data)															2026						2025
Net sales															$	3,976					$	3,635
Cost of sales															1,878						1,650
Gross profit															2,098						1,985
Selling, general, and administrative expenses															1,342						1,192
Other operating income, net															—						(8)
Income from operations															756						801
Interest expense, net															281						148
Other expense (income), net															118						(7)
Income before provision for income taxes															357						660
Provision for income taxes															87						143
Net income															$	270					$	517
Earnings per common share:
Basic															$	0.20					$	0.38
Diluted															0.20						0.38
Weighted average common shares outstanding:
Basic															1,359.2						1,357.1
Diluted															1,363.7						1,362.2

The accompanying notes are an integral part of these unaudited condensed consolidated financial statements.

KEURIG DR PEPPER INC.

CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME

(UNAUDITED)

									First Quarter
(in millions)															2026						2025
Net income															$	270					$	517
Other comprehensive (loss) income:
Foreign currency translation adjustments															(242)						13
Net change in pension and post-retirement liability, net of tax of $— and $—, respectively															(3)						—
Net change in cash flow hedges, net of tax of $(21) and $1, respectively															27						(12)
Total other comprehensive (loss) income															(218)						1
Comprehensive income															$	52					$	518

The accompanying notes are an integral part of these unaudited condensed consolidated financial statements.

KEURIG DR PEPPER INC.

CONDENSED CONSOLIDATED BALANCE SHEETS

(UNAUDITED)

(in millions, except share and per share data)			March 31, 2026						December 31, 2025
Assets
Current assets:
Cash and cash equivalents			$	898					$	1,026
Restricted cash and restricted cash equivalents			17,818						18
Trade accounts receivable, net			1,539						1,671
Inventories			1,829						1,733
Prepaid expenses and other current assets			1,048						818
Total current assets			23,132						5,266
Property, plant, and equipment, net			3,249						3,230
Equity method investments			1,703						1,660
Goodwill			20,210						20,247
Intangible assets, net			23,653						23,725
Deferred tax assets			17						36
Other non-current assets			1,176						1,295
Total assets			$	73,140					$	55,459
Liabilities, convertible preferred stock, and equity
Current liabilities:
Accounts payable			$	2,843					$	2,996
Accrued expenses			1,466						1,379
Structured payables			22						25
Short-term borrowings and current portion of long-term obligations			4,816						3,105
Other current liabilities			878						785
Total current liabilities			10,025						8,290
Long-term obligations			20,891						13,036
Deferred tax liabilities			5,467						5,526
Other non-current liabilities			3,157						3,091
Total liabilities			39,540						29,943
Convertible preferred stock, $0.01 par value, 4,500,000 shares authorized, 4,500,000 and 0 shares issued and outstanding as of March 31, 2026 and December 31, 2025, respectively. Liquidation preference of $4,500 million as of March 31, 2026			4,418						—
Stockholders' equity:
Preferred stock, $0.01 par value, 10,500,000 shares authorized, no shares issued as of March 31, 2026 and December 31, 2025			—						—
Common stock, $0.01 par value, 2,000,000,000 shares authorized, 1,360,434,759 and 1,358,663,795 shares issued and outstanding as of March 31, 2026 and December 31, 2025, respectively			14						14
Additional paid-in capital			19,783						19,778
Retained earnings			5,580						5,622
Accumulated other comprehensive (loss) income			(116)						102
Total stockholders' equity			25,261						25,516
Non-controlling interest			3,921						—
Total equity			29,182						25,516
Total liabilities, convertible preferred stock, and equity			$	73,140					$	55,459

The accompanying notes are an integral part of these unaudited condensed consolidated financial statements.

KEURIG DR PEPPER INC.

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

(UNAUDITED)

			First Quarter
(in millions)			2026						2025
Operating activities:
Net income			$	270					$	517
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation expense			114						106
Amortization of intangibles			37						34
Other amortization expense			34						23
Provision for sales returns			11						11
Deferred income taxes			4						(6)
Employee stock-based compensation expense			30						22
Amortization of deferred financing costs			98						3
Loss (gain) on disposal of property, plant, and equipment			10						(6)
Unrealized gain on foreign currency			(20)						—
Unrealized gain on derivatives			(64)						(62)
Settlements of interest rate contracts			70						—
Earnings of equity method investments			(16)						(10)
Earned equity from distribution arrangements			(8)						(10)
Other, net			(14)						(5)
Changes in assets and liabilities, excluding the effects of business acquisitions:
Trade accounts receivable			118						164
Inventories			(101)						(239)
Income taxes receivable and payable, net			43						(27)
Other current and non-current assets			(216)						(110)
Accounts payable and accrued expenses			(129)						(173)
Other current and non-current liabilities			10						(23)
Net change in operating assets and liabilities			(275)						(408)
Net cash provided by operating activities			281						209
Investing activities:
Purchases of property, plant, and equipment			(116)						(120)
Proceeds from sales of property, plant, and equipment			19						13
Purchases of intangibles			(2)						(14)
Other, net			1						64
Net cash used in investing activities			$	(98)					$	(57)

The accompanying notes are an integral part of these unaudited condensed consolidated financial statements.

KEURIG DR PEPPER INC.

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

(UNAUDITED, CONTINUED)

			First Quarter
(in millions)			2026						2025
Financing activities:
Proceeds from issuance of Maple Notes			$	6,003					$	—
Net (repayment) issuance of commercial paper			(21)						1,356
Proceeds from delayed draw term loan			3,626						—
Repayment of term loan			—						(990)
Net proceeds from issuance of convertible preferred stock			4,489						—
Net proceeds from sale of non-controlling interest			3,948						—
Proceeds from structured payables			3						8
Repayments of structured payables			(7)						(18)
Cash dividends paid			(312)						(312)
Tax withholdings related to net share settlements			(25)						(23)
Payments on finance leases			(34)						(25)
Deferred financing charges paid			(28)						(3)
Other, net			(3)						—
Net cash provided by (used in) financing activities			17,639						(7)
Cash, cash equivalents, restricted cash, and restricted cash equivalents:
Net change from operating, investing, and financing activities			17,822						145
Effect of exchange rate changes			(150)						(2)
Beginning balance			1,044						608
Ending balance			$	18,716					$	751
Supplemental cash flow disclosures:
Accrued transaction costs for JV Investment and Convertible Preferred Investment			$	143					$	—
Capital expenditures included in accounts payable and accrued expenses			130						176
Dividends declared but not yet paid			312						313
Cash paid for interest			97						93

The accompanying notes are an integral part of these unaudited condensed consolidated financial statements.

KEURIG DR PEPPER INC.

CONDENSED CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY

(UNAUDITED)

									Common Stock Issued												Additional Paid-In Capital						Retained Earnings						Accumulated Other Comprehensive Income (Loss)						Total Stockholders' Equity						Non-Controlling Interest						Total Equity
(in millions, except per share data)															Shares						Amount
Balance as of December 31, 2025															1,358.7						$	14					$	19,778					$	5,622					$	102					$	25,516					$	—					$	25,516
Net income															—						—						—						270						—						270						—						270
Other comprehensive loss															—						—						—						—						(218)						(218)						—						(218)
Dividends declared, $0.23 per share															—						—						—						(312)						—						(312)						—						(312)
Shares issued under employee stock-based compensation plans and other															1.7						—						—						—						—						—						—						—
Tax withholdings related to net share settlements															—						—						(25)						—						—						(25)						—						(25)
Stock-based compensation															—						—						30						—						—						30						—						30
Sale of non-controlling interest, net of transaction costs and tax effects															—						—						—						—						—						—						3,921						3,921
Balance as of March 31, 2026															1,360.4						$	14					$	19,783					$	5,580					$	(116)					$	25,261					$	3,921					$	29,182

			Common Stock Issued												Additional Paid-In Capital						Retained Earnings						Accumulated Other Comprehensive Loss						Total Stockholders' Equity
(in millions, except per share data)			Shares						Amount
Balance as of December 31, 2024			1,356.7						$	14					$	19,712					$	4,793					$	(276)					$	24,243
Net income			—						—						—						517						—						517
Other comprehensive income			—						—						—						—						1						1
Dividends declared, $0.23 per share			—						—						—						(313)						—						(313)
Shares issued under employee stock-based compensation plans and other			1.5						—						—						—						—						—
Tax withholdings related to net share settlements			—						—						(23)						—						—						(23)
Stock-based compensation			—						—						22						—						—						22
Balance as of March 31, 2025			1,358.2						$	14					$	19,711					$	4,997					$	(275)					$	24,447

The accompanying notes are an integral part of these unaudited condensed consolidated financial statements.

KEURIG DR PEPPER INC.

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(UNAUDITED)

1. General

ORGANIZATION

References in this Quarterly Report on Form 10-Q to "KDP", "we", "us", and "our", refer to Keurig Dr Pepper Inc. and all wholly-owned subsidiaries included in the unaudited condensed consolidated financial statements. Definitions of terms used in this Quarterly Report on Form 10-Q are included within the Master Glossary.

This Quarterly Report on Form 10-Q refers to some of our owned or licensed trademarks, trade names, and service marks, which are referred to as our brands. All of the product names included herein are either KDP registered trademarks or those of our licensors.

BASIS OF PRESENTATION

The accompanying unaudited condensed consolidated financial statements have been prepared in accordance with U.S. GAAP for interim financial information and in accordance with the instructions to Form 10-Q and Article 10 of Regulation S-X. Accordingly, they do not include all of the information and footnotes required by U.S. GAAP for complete consolidated financial statements. In the opinion of management, all adjustments, consisting principally of normal recurring adjustments, considered necessary for a fair presentation have been included. These unaudited condensed consolidated financial statements should be read in conjunction with our consolidated financial statements and accompanying notes included in our Annual Report.

References to the "first quarter" indicate the quarterly periods ended March 31, 2026 and 2025.

USE OF ESTIMATES

The process of preparing our unaudited condensed consolidated financial statements in conformity with U.S. GAAP requires the use of estimates and judgments that affect reported amounts. These estimates and judgments are based on historical experience, future expectations, and other factors and assumptions we believe to be reasonable under the circumstances. These estimates and judgments are reviewed on an ongoing basis and are revised when necessary. Changes in estimates are recorded in the period of change. Actual amounts may differ from these estimates.

RECLASSIFICATIONS

We have reclassified certain prior period amounts within the unaudited Condensed Consolidated Statements of Cash Flows to conform to the current period presentation. These reclassifications had no impact on total cash, cash equivalents, restricted cash, and restricted cash equivalents.

2. JDE Peet's Acquisition and Related Transactions

JDE PEET'S ACQUISITION

On January 15, 2026, we commenced a tender offer to acquire all of the issued and outstanding ordinary shares of JDE Peet's for a cash offer price of €31.85 per share, without interest. We substantially completed the tender offer in connection with the JDE Peet's Acquisition on April 1, 2026. Refer to Note 19 for additional information.

During the first quarter of 2026, we completed a series of transactions in order to obtain funding for the consideration of the JDE Peet's Acquisition:

• Delayed Draw Term Loan of $3.6 billion

• Senior Unsecured Notes of approximately $6 billion

• JV Investment of $4 billion

• Issuance of Convertible Preferred Stock of $4.5 billion

Each transaction is described further below.

KEURIG DR PEPPER INC.

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(UNAUDITED, CONTINUED)

BORROWING ARRANGEMENTS

In connection with the JDE Peet's Acquisition, we entered into the Bridge Credit Agreement, the Delayed Draw Term Loan Agreement, and the Maple Notes. Refer to Note 3 for additional information on these borrowing arrangements.

PREFERRED INVESTMENT

On March 30, 2026, we completed the Preferred Investment. We issued and sold 4.5 million shares of our Convertible Preferred Stock, with a par value of $0.01 per share, to the Preferred Investors for a purchase price of $1,000 per share. Refer to Note 4 for additional information.

JV INVESTMENT

On March 30, 2026, we completed the JV Investment. We contributed the Coffee Production Assets, as well as certain of our related coffee assets (including sales and distribution) in Canada to the Pod Manufacturing JV, and the JV Investors contributed, through the JV Investor Partner, $4 billion in cash in exchange for a 49% interest in the Pod Manufacturing JV. Refer to Note 5 for additional information.

3. Long-term Obligations and Borrowing Arrangements

The following table summarizes our long-term obligations:

(in millions)			March 31, 2026						December 31, 2025
Notes and Maple Notes			$	19,900					$	13,931
Delayed draw term loan			2,986						—
Less: current portion of long-term obligations			(1,995)						(895)
Long-term obligations			$	20,891					$	13,036

The following table summarizes our short-term borrowings and current portion of long-term obligations:

(in millions)			March 31, 2026						December 31, 2025
Commercial paper notes			$	2,189					$	2,210
Delayed draw term loan			632						—
Current portion of long-term obligations
Notes			1,995						895
Short-term borrowings and current portion of long-term obligations			$	4,816					$	3,105

KEURIG DR PEPPER INC.

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(UNAUDITED, CONTINUED)

SENIOR UNSECURED NOTES

(in millions, except %)			Maturity Date						Rate						March 31, 2026						December 31, 2025
2026 Notes			September 15, 2026						2.550%						$	400					$	400
2026-B Notes			November 15, 2026						Floating(2)						500						500
2027-B Notes			March 15, 2027						Floating(2)						350						350
2027-C Notes			March 15, 2027						5.100%						750						750
2027 Notes			June 15, 2027						3.430%						500						500
2028 Euro Notes (€600 million)(3)			March 26, 2028						3.495%						690						—
2028 Notes			May 15, 2028						4.350%						500						500
2028 Merger Notes			May 25, 2028						4.597%						1,112						1,112
2029-B Notes			March 15, 2029						5.050%						750						750
2029-C Notes(3)			March 26, 2029						4.750%						550						—
2029 Notes			April 15, 2029						3.950%						1,000						1,000
2030 Euro Notes (€800 million)(3)			March 26, 2030						3.881%						921						—
2030 Notes			May 1, 2030						3.200%						750						750
2030-B Notes			May 15, 2030						4.600%						500						500
2031 Notes			March 15, 2031						2.250%						500						500
2031-B Notes			March 15, 2031						5.200%						500						500
2031-C Notes(3)			March 26, 2031						5.050%						600						—
2032 Euro Notes (€800 million)(3)			March 26, 2032						4.224%						921						—
2032 Notes			April 15, 2032						4.050%						850						850
2034 Notes			March 15, 2034						5.300%						650						650
2035 Euro Notes (€800 million)(3)			March 26, 2035						4.728%						921						—
2035 Notes			May 15, 2035						5.150%						500						500
2036 Notes(3)			March 26, 2036						5.700%						700						—
2038 Merger Notes			May 25, 2038						4.985%						211						211
2045 Notes			November 15, 2045						4.500%						550						550
2046 Notes			December 15, 2046						4.420%						400						400
2048 Merger Notes			May 25, 2048						5.085%						391						391
2050 Notes			May 1, 2050						3.800%						750						750
2051 Notes			March 15, 2051						3.350%						500						500
2052 Notes			April 15, 2052						4.500%						1,150						1,150
2056 Notes(3)			March 26, 2056						6.625%						700						—
Principal amount															20,067						14,064
Adjustment from principal amount to carrying amount(1)															(167)						(133)
Carrying amount															$	19,900					$	13,931

(1)The carrying amount includes unamortized discounts, debt issuance costs, and fair value adjustments related to the DPS Merger.

(2)Our floating rate notes bear interest at a rate equal to Compounded SOFR (as defined in the respective supplemental indenture) plus a spread of 0.580% and 0.880% for the 2026-B Notes and the 2027-B Notes, respectively.

(3)The 2028 Euro Notes, 2030 Euro Notes, 2032 Euro Notes, 2035 Euro Notes, 2029-C Notes, 2031-C Notes, 2036 Notes, and 2056 Notes (together, the Maple Notes) were issued by Maple and are guaranteed by Keurig Dr Pepper Inc. and certain of our subsidiaries that guarantee our other senior indebtedness, which guarantees will terminate upon the Separation.

On March 26, 2026, Maple completed the issuance of the 2029-C Notes, 2031-C Notes, 2036 Notes, and 2056 Notes, with an aggregate principal amount of $2.55 billion. The discount associated with the notes was approximately $3 million, and we incurred $18 million in debt issuance costs. In addition, Maple completed the issuance of the 2028 Euro Notes, 2030 Euro Notes, 2032 Euro Notes and 2035 Euro Notes with an aggregate principal amount of €3 billion, and we incurred $20 million in debt issuance costs. The proceeds from the issuance of the Maple Notes were used to fund the JDE Peet's Acquisition and to pay related fees and expenses in connection with the JDE Peet's Acquisition and related transactions.

KEURIG DR PEPPER INC.

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(UNAUDITED, CONTINUED)

VARIABLE-RATE BORROWING ARRANGEMENTS

Delayed Draw Term Loan Agreement

The Delayed Draw Term Loan Agreement provides for a 364-day senior unsecured term loan facility in an aggregate amount not to exceed €10.35 billion, the proceeds of which may be used to fund the JDE Peet's Acquisition, as well as related fees and expenses.

Borrowings under the Delayed Draw Term Loan Agreement bear interest at a rate per annum equal to EURIBOR plus a margin of 0.750% to 1.750% depending on the rating of certain of our index debt. The undrawn commitments under the facility are subject to a commitment fee which commenced on December 23, 2025, at a per annum rate of 0.060% to 0.200% depending on the rating of certain of our index debt.

On March 6, 2026, we entered into an amendment to the Delayed Draw Term Loan Agreement with Maple, the guarantors party thereto, the lenders party thereto and Morgan Stanley Senior Funding, Inc. as administrative agent. Maple joined and became a party to the Delayed Draw Term Loan Agreement as a borrower, and agreed to be jointly and severally liable, together with KDP, for all obligations of KDP and Maple under the Delayed Draw Term Loan Agreement. In addition, the amendment extends the maturity of €2.60 billion of the facility to the date that is 15 months from the date of initial funding under the Delayed Draw Term Loan Agreement. The maturity of the remaining €7.75 billion of the facility was not modified. Upon the completion of the Separation, KDP shall be automatically released from the Delayed Draw Term Loan Agreement and all of its obligations and liabilities thereunder will automatically terminate. Following the Separation, Maple will be the sole borrower under the Delayed Draw Term Loan Agreement.

In the first quarter of 2026, the Delayed Draw Term Loan Agreement facility was reduced by approximately €6.464 billion as a result of the issuance of the Maple Notes and the completion of the Preferred Investment and the JV Investment. On March 30, 2026, we borrowed €3.15 billion under the facility, and €736 million remains available and undrawn as of March 31, 2026. The interest rate in effect as of March 31, 2026 was 3.385%.

As of March 31, 2026, we were in compliance with our minimum interest coverage ratio with respect to the Delayed Draw Term Loan Agreement.

Bridge Credit Agreement

The Bridge Credit Agreement provided for a 364-day senior unsecured bridge loan facility in an aggregate amount not to exceed €5.85 billion. On March 30, 2026, we terminated the Bridge Credit Agreement. We had no outstanding loan balances as of the termination date.

Revolving Credit Agreement

The following table summarizes information about the 2025 Revolving Credit Agreement:

															Amounts Outstanding
(in millions)			Maturity Date						Capacity						March 31, 2026						December 31, 2025
2025 Revolving Credit Agreement(1)			March 31, 2030						$	4,300					$	—					$	—

(1)The 2025 Revolving Credit Agreement has a $200 million letter of credit limit, with none utilized as of March 31, 2026.

As of March 31, 2026, we were in compliance with our minimum interest coverage ratio with respect to the 2025 Revolving Credit Agreement.

Commercial Paper Program

									First Quarter
(in millions, except %)															2026						2025
Weighted average commercial paper borrowings															$	2,449					$	2,682
Weighted average borrowing rates															4.00		%				4.63		%

KEURIG DR PEPPER INC.

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(UNAUDITED, CONTINUED)

Letter of Credit Facility

In addition to the portion of the 2025 Revolving Credit Agreement reserved for issuance of letters of credit, we have an incremental letter of credit facility. Under this facility, $150 million is available for the issuance of letters of credit, $63 million of which was utilized as of March 31, 2026 and $87 million of which remains available for use.

FAIR VALUE DISCLOSURES

The fair values of our commercial paper and delayed draw term loan approximate the carrying values and are considered Level 2 within the fair value hierarchy.

The fair values of our Notes and Maple Notes are based on current market rates available to us and are considered Level 2 within the fair value hierarchy. The difference between the fair value and the carrying value represents the theoretical net premium or discount that would be paid or received to retire all the Notes and Maple Notes and related unamortized costs to be incurred at such date. The fair value of our Notes and Maple Notes was $18,894 million and $13,196 million as of March 31, 2026 and December 31, 2025, respectively.

4. Convertible Preferred Stock

On March 30, 2026, we completed the Preferred Investment. We issued and sold 4.5 million shares of our Convertible Preferred Stock, with a par value of $0.01 per share, to the Preferred Investors for a purchase price of $1,000 per share, or an aggregate of $4,500 million. We incurred issuance costs associated with the Preferred Investment of $105 million.

VOTING RIGHTS

The holders of the Convertible Preferred Stock are entitled to vote on an as-converted equivalent basis along with holders of our common stock.

DIVIDENDS AND DISTRIBUTIONS

The Convertible Preferred Stock ranks senior to our common stock with respect to dividend and distribution on liquidation rights. The Convertible Preferred Stock has a liquidation preference of $1,000 per share. The holders of the Convertible Preferred Stock are entitled to dividends at a rate of 4.75% per annum, subject to increase in certain cases, and to participate in dividends paid to holders of our common stock on an as-converted basis, provided that any such dividends received on an as-converted basis will reduce, on a dollar-for-dollar basis, the dividends holders are entitled to receive on the Convertible Preferred Stock. Dividends on the Convertible Preferred Stock will be paid in cash. We may choose to defer payment of all or part of any dividends due on the Convertible Preferred Stock; however, we will accrue additional dividends until paid in cash and we will not be able to declare or pay any dividends on or make repurchases of our common stock, subject to certain conditions. For the first quarter of 2026, there were no dividends declared or paid to the holders of our Convertible Preferred Stock due to the timing of the issuance.

CONVERSION

The Convertible Preferred Stock, plus the value of any unpaid dividends, is convertible into shares of our common stock, at our election or, in certain specified circumstances, the election of the Preferred Investors, at an initial conversion price of $37.25 (which will be subject to anti-dilution adjustments, as well as an adjustment in the event that we complete the Separation). Holders may convert up to, in the aggregate, 50% of the Convertible Preferred Stock allocated among such holders and their permitted transferees pro rata at any time, and may convert the remainder following the earliest of the closing of the Separation, the 18-month anniversary of the issuance of the Convertible Preferred Stock, upon foreclosure by a lender under a bona fide loan or other financing arrangement or the 12-month anniversary of any initial public offering of the remaining beverage business if the Separation has not yet occurred. At any time after March 30, 2029, we may require the Convertible Preferred Stock to be converted if the closing price per share of our common stock exceeds 150% of the conversion price then in effect for at least twenty trading days in any period of thirty consecutive trading days.

KEURIG DR PEPPER INC.

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(UNAUDITED, CONTINUED)

REDEMPTION

We will have the right, but not the obligation, to redeem the Convertible Preferred Stock anytime on or after March 30, 2033, in cash, at the optional redemption price as defined in the Certificate of Designations. The Convertible Preferred Stock is classified as mezzanine equity in our Condensed Consolidated Balance Sheets as the Convertible Preferred Stock may be redeemable at the option of the shareholders in the event of certain fundamental changes which are not solely within our control. We are not required to adjust the carrying value of the Convertible Preferred Stock to the current redemption value, as such fundamental changes were not probable as of March 31, 2026.

ROLLFORWARD

The following table summarizes the activity for the outstanding Convertible Preferred Stock for the first quarter of 2026:

			Convertible Preferred Stock
(in millions)			Shares						Carrying Value
Balance as of December 31, 2025			—						$	—
Issuance of Convertible Preferred Stock, net of issuance costs and tax effects			4.5						4,418
Balance as of March 31, 2026			4.5						$	4,418

5. Pod Manufacturing JV

On March 30, 2026, we completed the JV Investment. We contributed the Coffee Production Assets, as well as certain of our related coffee assets (including sales and distribution) in Canada to the Pod Manufacturing JV, and the JV Investors contributed $4 billion in cash through the JV Investor Partner, in exchange for a 49% interest in the Pod Manufacturing JV. The remaining 51% ownership interest remains under our ownership. We incurred $101 million in transaction costs associated with the JV Investment.

GOVERNANCE

The JV LP Agreement sets forth each partner's rights and responsibilities with respect to the Pod Manufacturing JV, including with respect to the JV Committee (a majority of which will be appointed by us); certain unanimous approval rights in favor of the JV Investor Partner; mechanisms for capital contributions to be made to the Pod Manufacturing JV; limitations on transfers by the partners; a call right exercisable by us during the period from approximately 8 to 15 years following the closing, as well as an early call right exercisable prior to such period, subject to certain conditions; a conversion right exercisable by the JV Investor Partner approximately 15 years following the closing whereby the JV Investor Partner may elect to convert its interest in the Pod Manufacturing JV into shares of KDP, subject to certain conditions being met as described in the JV LP Agreement, or following the Separation, the separated coffee business; and certain redemption obligations of Pod Manufacturing JV in the event of a change of control transaction.

DISTRIBUTIONS

The JV LP Agreement also sets forth distribution mechanics pursuant to which the Pod Manufacturing JV will make quarterly distributions of available cash to its partners subject to certain limitations, including for operating costs and reserves. KDP has full and sole discretion to declare distributions. Distributions to the JV Investor Partner are in proportion to its ownership interest; however, during the first five years following the closing, the distributions to the JV Investor Partner will be targeted so that the JV Investor Partner receives an internal rate of return of 6.375% on its invested capital, with any remaining available cash distributed to the other partners or all partners, at the discretion of the JV Committee.

KEURIG DR PEPPER INC.

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(UNAUDITED, CONTINUED)

PRESENTATION

The JV Investment was accounted for as a sale of interest in a subsidiary without a loss of control. We recorded a $4 billion increase in non-controlling interest on our unaudited Condensed Consolidated Balance Sheets and a subsequent $101 million decrease in non-controlling interest related to transaction costs incurred. The non-controlling interest is presented net of tax effects of $22 million.

The Pod Manufacturing JV is a VIE which we are required to consolidate as we are the primary beneficiary. Any net earnings attributable to the JV Investors are presented separately in the unaudited Condensed Consolidated Statements of Income. For the first quarter of 2026, there were no net earnings attributable to non-controlling interest due to the timing of the completion of the JV Investment.

6. Goodwill and Intangible Assets

GOODWILL

Changes in the carrying amount of goodwill by reportable segment are as follows:

(in millions)			U.S. Refreshment Beverages						U.S. Coffee						International						Total
Balance as of December 31, 2025			$	8,870					$	8,622					$	2,755					$	20,247
Foreign currency translation			—						—						(37)						(37)
Balance as of March 31, 2026			$	8,870					$	8,622					$	2,718					$	20,210

INTANGIBLE ASSETS OTHER THAN GOODWILL

The net carrying amounts of intangible assets other than goodwill are as follows:

			March 31, 2026																		December 31, 2025
(in millions)			Gross Amount						Accumulated Amortization						Net Amount						Gross Amount						Accumulated Amortization						Net Amount
Intangible assets with definite lives:
Acquired technology			$	1,146					$	(712)					$	434					$	1,146					$	(694)					$	452
Customer relationships			683						(309)						374						683						(301)						382
Contractual arrangements			146						(32)						114						146						(30)						116
Trade names			126						(126)						—						126						(126)						—
Brands			76						(43)						33						76						(40)						36
Distribution rights			162						(41)						121						162						(35)						127
Other			25						(3)						22						25						(3)						22
Total intangible assets with definite lives			$	2,364					$	(1,266)					$	1,098					$	2,364					$	(1,229)					$	1,135
Intangible assets with indefinite lives:
Brands															$	19,956																	$	19,993
Trade names															2,478																		2,478
Distribution rights															121																		119
Total intangible assets with indefinite lives															22,555																		22,590
Total intangible assets, net															$	23,653																	$	23,725

KEURIG DR PEPPER INC.

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(UNAUDITED, CONTINUED)

Amortization expense for intangible assets with definite lives was as follows:

									First Quarter
(in millions)															2026						2025
Amortization expense															$	37					$	34

7. Derivatives

We are exposed to market risks arising from adverse changes in interest rates, FX rates, and commodity prices. We manage these risks through a variety of strategies, including the use of interest rate contracts, FX forward contracts, commodity forward, future, swap, and option contracts, and supplier pricing agreements. We do not hold or issue derivative financial instruments for trading or speculative purposes.

All derivative instruments are recorded on a gross basis, including those subject to master netting arrangements.

We formally designate and account for certain interest rate contracts and FX forward contracts that meet established accounting criteria under U.S. GAAP as cash flow hedges. For such contracts, the effective portion of the gain or loss on the derivative instruments is recorded, net of applicable taxes, in AOCI. When net income is affected by the variability of the underlying transaction, the applicable offsetting amount of the gain or loss from the derivative instrument deferred in AOCI is reclassified to net income. Cash flows from derivative instruments designated in a qualifying hedging relationship are classified in the same category as the cash flows from the hedged items. If a cash flow hedge were to cease to qualify for hedge accounting, or were terminated, the derivatives would continue to be carried on the balance sheet at fair value until settled, and hedge accounting would be discontinued prospectively. If the underlying hedged transaction ceases to exist, any associated amounts reported in AOCI would be reclassified to earnings at that time.

For derivatives that are not designated or for which the designated hedging relationship is discontinued, the gain or loss on the instrument is recognized in earnings in the period of change.

We have exposure to credit losses from derivative instruments in an asset position in the event of nonperformance by the counterparties to the agreements. Historically, we have not experienced material credit losses as a result of counterparty nonperformance. We select and periodically review counterparties based on credit ratings, limit our exposure to a single counterparty under defined guidelines, and monitor the market position of the programs upon execution of a hedging transaction and at least on a quarterly basis.

INTEREST RATES

Economic Hedges

We are exposed to interest rate risk related to our borrowing arrangements and obligations. We enter into interest rate contracts to provide predictability in our overall cost structure and to manage the balance of fixed-rate and variable-rate debt. We primarily enter into receive-fixed, pay-variable and receive-variable, pay-fixed swaps, and swaption contracts. A natural hedging relationship exists in which changes in the fair value of the instruments act as an economic offset to changes in the fair value of the underlying items. Changes in the fair value of these instruments are recorded in earnings throughout the term of the derivative instrument and are generally reported in Interest expense, net in the unaudited Condensed Consolidated Statements of Income. As of March 31, 2026, economic interest rate derivative instruments have maturities ranging from March 2027 to November 2046.

Cash Flow Hedges

From time to time, we designate certain interest rate contracts as cash flow hedges in order to manage the exposures resulting from changes in interest rates as described above. In the fourth quarter of 2025 and the first quarter of 2026, we entered into forward starting swaps with an aggregate notional of approximately $3.5 billion and designated them as cash flow hedges. In March 2026, we terminated these contracts and issued the related Maple Notes, as described in Note 3. Upon termination, we received approximately $70 million to settle the contracts with the counterparties, which was recorded to accumulated other comprehensive income and will be amortized to interest expense over the respective terms of the Maple Notes. We had no designated interest rate contracts outstanding as of March 31, 2026.

KEURIG DR PEPPER INC.

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(UNAUDITED, CONTINUED)

FOREIGN EXCHANGE

We are exposed to FX risk in our foreign subsidiaries and with certain counterparties in foreign jurisdictions, which may transact in currencies that are different from the functional currencies of our legal entities. Additionally, the balance sheets of these subsidiaries are subject to exposure from movements in exchange rates.

Economic Hedges

We hold FX forward contracts to economically manage the balance sheet exposures resulting from changes in the FX rates described above. The intent of these FX contracts is to minimize the impact of FX risk associated with balance sheet positions not in local currency. In these cases, a hedging relationship exists in which changes in the fair value of the instruments act as an economic offset to changes in the fair value of the underlying items.

Additionally, in order to complete the JDE Peet's Acquisition on April 1, 2026, we have significant Euro-denominated cash outflows, as described in Note 2. We entered into FX forward contracts in 2025 and 2026 to reduce our exposure to exchange rate fluctuations associated with the acquisition consideration and related financing.

Changes in the fair value of these instruments are recorded in earnings throughout the term of the derivative instrument and are reported in the same caption of the unaudited Condensed Consolidated Statements of Income as the associated risk. As of March 31, 2026, these FX contracts have maturities ranging from April 2026 to December 2026.

Cash Flow Hedges

We designate certain FX forward contracts as cash flow hedges in order to manage the exposures resulting from changes in the FX rates described above. These designated FX forward contracts relate to forecasted inventory purchases in U.S. dollars of our foreign subsidiaries. The intent of these FX contracts is to provide predictability in our overall cost structure. As of March 31, 2026, these FX contracts have maturities ranging from April 2026 to June 2027.

COMMODITIES

Economic Hedges

We centrally manage the exposure to volatility in the prices of certain commodities used in our production process and transportation through various derivative contracts. We generally hold some combination of future, swap, and option contracts that economically hedge certain risks. In these cases, a hedging relationship exists in which changes in the fair value of the instruments act as an economic offset to changes in the fair value of the underlying items or as an offset to certain costs of production. Changes in the fair value of these instruments are recorded in earnings throughout the term of the derivative instrument and are reported in the same line item of the unaudited Condensed Consolidated Statements of Income as the hedged transaction. Unrealized gains and losses are recognized as a component of unallocated corporate costs until our reportable segments are affected by the completion of the underlying transaction, at which time the gain or loss is reflected as a component of the respective segment's income from operations. As of March 31, 2026, these commodity contracts have maturities ranging from April 2026 to January 2028.

KEURIG DR PEPPER INC.

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(UNAUDITED, CONTINUED)

NOTIONAL AMOUNTS OF DERIVATIVE INSTRUMENTS

The following table presents the notional amounts of our outstanding derivative instruments by type:

(in millions)			March 31, 2026						December 31, 2025
Interest rate contracts
Pay-variable interest rate swaps, not designated as hedging instruments			$	1,200					$	—
Pay-fixed interest rate swaps, not designated as hedging instruments			600						—
Forward starting swaps, not designated as hedging instruments			500						2,300
Forward starting swaps, designated as cash flow hedges			—						1,500
FX contracts
Forward contracts, not designated as hedging instruments(1)			6,048						12,436
Forward contracts, designated as cash flow hedges			500						597
Commodity contracts, not designated as hedging instruments(2)			700						595

(1)Includes €5 billion as of March 31, 2026 and €10 billion as of December 31, 2025 of FX forward contracts entered into in connection with the JDE Peet's Acquisition.

(2)Notional value for commodity contracts is calculated as the expected volume times strike price per unit on a gross basis.

FAIR VALUE OF DERIVATIVE INSTRUMENTS

The fair values of commodity contracts, interest rate contracts, and FX forward contracts are determined based on inputs that are readily available in public markets or can be derived from information available in publicly quoted markets. The fair values of commodity contracts are valued using the market approach based on observable market transactions, primarily underlying commodities futures or physical index prices, at the reporting date. Interest rate contracts are valued using models based primarily on readily observable market parameters, such as SOFR forward rates, for all substantial terms of our contracts and credit risk of the counterparties. FX forward contracts are valued using quoted FX forward rates at the reporting date. Therefore, we have categorized these contracts as Level 2.

Not Designated as Hedging Instruments

The following table summarizes the location of the fair value of our derivative instruments which are not designated as hedging instruments within the unaudited Condensed Consolidated Balance Sheets. All such instruments are considered Level 2 within the fair value hierarchy.

(in millions)			Balance Sheet Location						March 31, 2026						December 31, 2025
Assets:
FX contracts			Prepaid expenses and other current assets						$	1					$	5
Commodity contracts			Prepaid expenses and other current assets						128						47
Commodity contracts			Other non-current assets						12						3
Liabilities:
Interest rate contracts			Other current liabilities						27						16
FX contracts			Other current liabilities						61						38
Commodity contracts			Other current liabilities						15						9
Interest rate contracts			Other non-current liabilities						370						381
Commodity contracts			Other non-current liabilities						14						23

KEURIG DR PEPPER INC.

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(UNAUDITED, CONTINUED)

Designated as Hedging Instruments

The following table summarizes the location of the fair value of our derivative instruments which are designated as hedging instruments within the unaudited Condensed Consolidated Balance Sheets. All such instruments are considered Level 2 within the fair value hierarchy.

(in millions)			Balance Sheet Location						March 31, 2026						December 31, 2025
Assets:
FX contracts			Prepaid expenses and other current assets						$	6					$	2
FX contracts			Other non-current assets						2						1
Interest rate contracts			Other non-current assets						—						37
Liabilities:
FX contracts			Other current liabilities						10						16
Interest rate contracts			Other current liabilities						—						2

IMPACT OF DERIVATIVE INSTRUMENTS NOT DESIGNATED AS HEDGING INSTRUMENTS

The following table presents the amount of losses (gains), net, recognized in the unaudited Condensed Consolidated Statements of Income related to derivative instruments not designated as hedging instruments under U.S. GAAP during the periods presented. Amounts include both realized and unrealized gains and losses.

			Income Statement Location												First Quarter
(in millions)																		2026						2025
Interest rate contracts			Interest expense, net																		$	1					$	(32)
FX contracts			Cost of sales																		1						(1)
FX contracts			Other expense (income), net																		115						3
Commodity contracts			Cost of sales																		(45)						(17)
Commodity contracts			SG&A expenses																		(69)						(2)

IMPACT OF CASH FLOW HEDGES

The following table presents the amount of net (gains) losses reclassified from AOCI into the unaudited Condensed Consolidated Statements of Income related to derivative instruments designated as cash flow hedging instruments:

			Income Statement Location												First Quarter
(in millions)																		2026						2025
Interest rate contracts			Interest expense, net																		$	(3)					$	(3)
FX contracts			Cost of sales																		3						(5)

We expect to reclassify approximately $22 million of pre-tax net gains and $6 million of pre-tax net losses from AOCI into net income during the next twelve months related to interest rate contracts and FX contracts, respectively.

KEURIG DR PEPPER INC.

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(UNAUDITED, CONTINUED)

8. Leases

The following table presents the components of lease cost:

									First Quarter
(in millions)															2026						2025
Operating lease cost															$	45					$	44
Finance lease cost
Amortization of right-of-use assets															30						28
Interest on lease liabilities															12						9
Variable lease cost(1)															10						9
Total lease cost															$	97					$	90

(1)Variable lease cost primarily consists of common area maintenance costs, property taxes, and adjustments for inflation.

The following tables present supplemental information about our leases:

(in millions)						Balance Sheet Location						March 31, 2026						December 31, 2025
Assets:
Operating lease right-of-use assets						Other non-current assets						$	837					$	845
Finance lease right-of-use assets(1)						Property, plant, and equipment, net						998						919
Liabilities:
Operating lease liability						Other current liabilities						$	136					$	127
Finance lease liability						Other current liabilities						184						179
Operating lease liability						Other non-current liabilities						753						764
Finance lease liability						Other non-current liabilities						815						745

(1)Amounts are presented net of accumulated amortization of $453 million and $426 million as of March 31, 2026 and December 31, 2025, respectively.

			First Quarter
(in millions)			2026						2025
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows from operating leases			$	40					$	42
Operating cash flows from finance leases			12						9
Financing cash flows from finance leases			34						25
Right-of-use assets obtained in exchange for lease obligations:
Operating leases			27						4
Finance leases			109						44

The following table presents information about our weighted average discount rate and remaining lease term:

			March 31, 2026						December 31, 2025
Weighted average discount rate
Operating leases			5.3		%				5.3		%
Finance leases			4.9		%				4.8		%
Weighted average remaining lease term
Operating leases			8 years						8 years
Finance leases			9 years						9 years

KEURIG DR PEPPER INC.

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(UNAUDITED, CONTINUED)

SCHEDULE OF FUTURE MINIMUM LEASE PAYMENTS

Future minimum lease payments for non-cancellable leases that have commenced and are reflected in the unaudited Condensed Consolidated Balance Sheets as of March 31, 2026 were as follows:

(in millions)			Operating Leases						Finance Leases
Remainder of 2026			$	120					$	189
2027			160						151
2028			130						140
2029			120						134
2030			111						124
2031			94						95
Thereafter			359						403
Total future minimum lease payments			1,094						1,236
Less: imputed interest			(205)						(237)
Present value of minimum lease payments			$	889					$	999

SIGNIFICANT LEASES THAT HAVE NOT YET COMMENCED

As of March 31, 2026, we have entered into leases that have not yet commenced with estimated aggregated future lease payments of approximately $156 million. These leases will commence between 2026 and 2028, with initial lease terms ranging from 5 years to 10 years.

KEURIG DR PEPPER INC.

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(UNAUDITED, CONTINUED)

9. Segments

Our three operating and reportable segments consist of the following:

• The U.S. Refreshment Beverages segment reflects sales in the U.S. from the manufacture and distribution of branded concentrates, syrups, finished beverages, and other consumables, including the sales of our own brands and third-party brands, to third-party bottlers, distributors, and retailers.

• The U.S. Coffee segment reflects sales in the U.S. from the manufacture and distribution of finished goods relating to our K-Cup pods, single serve brewers and accessories, and other coffee products, to partners, retailers, and directly to consumers through the Keurig.com website.

• The International segment reflects sales in international markets, including the following:

◦Sales in Canada, Mexico, the Caribbean, and other international markets from the manufacture and distribution of branded concentrates, syrups, and finished beverages, including sales of our own brands and third-party brands, to third-party bottlers, distributors, and retailers.

◦Sales in Canada from the manufacture and distribution of finished goods relating to our single serve brewers, K-Cup pods, and other coffee products.

Segment results are based on management reports provided to the CODM, which is Tim Cofer, our CEO. Net sales and income from operations are the significant financial measures used to assess the operating performance of our operating segments. The CODM periodically monitors our actual results and remaining forecast versus our annual budget for these financial measures, and this information is used to assess performance of the reportable segments, determine the payout of short-term incentive plan compensation, and to establish management's base salaries.

Intersegment sales are recorded at cost and are eliminated in the unaudited Condensed Consolidated Statements of Income. We have not provided disclosures of intersegment sales or total assets for each reportable segment, as our CODM does not review and is not provided with this information. "Other segment (income) expense" includes Other operating income, net, as well as other financial statement captions for infrequent charges, such as impairment of goodwill or intangible assets, used to arrive at "Income from operations - reportable segments". "Unallocated corporate costs" are excluded from our measurement of segment performance and include unrealized commodity derivative gains and losses and certain general corporate expenses.

KEURIG DR PEPPER INC.

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(UNAUDITED, CONTINUED)

Information about our operations and significant expenses by reportable segment is as follows:

(in millions)			U.S. Refreshment Beverages						U.S. Coffee						International						Total
First Quarter of 2026
Net sales			$	2,599					$	857					$	520					$	3,976
Cost of sales			1,066						539						290
SG&A expenses			812						158						145
Income from operations - reportable segments			$	721					$	160					$	85					$	966
Unallocated corporate costs																					(210)
Income from operations																					756
Interest expense, net																					281
Other expense, net																					118
Income before provision for income taxes																					$	357
First Quarter of 2025
Net sales			$	2,323					$	877					$	435					$	3,635
Cost of sales			937						523						228
SG&A expenses			733						151						119
Other segment (income) expense			(1)						1						(2)
Income from operations - reportable segments			$	654					$	202					$	90					$	946
Unallocated corporate costs																					(145)
Income from operations																					801
Interest expense, net																					148
Other income, net																					(7)
Income before provision for income taxes																					$	660

KEURIG DR PEPPER INC.

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(UNAUDITED, CONTINUED)

10. Net Sales

The following table disaggregates our net sales by product portfolio and by reportable segment:

(in millions)			U.S. Refreshment Beverages						U.S. Coffee						International						Total
First Quarter of 2026
LRB			$	2,515					$	18					$	334					$	2,867
K-Cup pods			—						701						139						840
Appliances			—						106						10						116
Other			84						32						37						153
Net sales			$	2,599					$	857					$	520					$	3,976
First Quarter of 2025
LRB			$	2,263					$	13					$	277					$	2,553
K-Cup pods			—						717						116						833
Appliances			—						116						8						124
Other			60						31						34						125
Net sales			$	2,323					$	877					$	435					$	3,635

LRB represents net sales of owned and partner brands within our portfolio and includes branded concentrates, syrup, and finished beverages, including contract manufacturing of KDP branded products for our bottlers and distributors. K-Cup pods represents net sales from owned brands, partner brands, and private label owners. Net sales for partner brands and private label owners are contractual and long-term in nature.

11. Earnings Per Share

									First Quarter
(in millions, except per share data)															2026						2025
Net income															$	270					$	517
Weighted average common shares outstanding															1,359.2						1,357.1
Dilutive effect of stock-based awards															4.5						5.1
Weighted average common shares outstanding and common stock equivalents															1,363.7						1,362.2
Basic EPS															$	0.20					$	0.38
Diluted EPS															0.20						0.38
Anti-dilutive shares excluded from the diluted weighted average shares outstanding calculation															4.7						0.8

KEURIG DR PEPPER INC.

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(UNAUDITED, CONTINUED)

12. Stock-Based Compensation

The components of stock-based compensation expense are presented below:

									First Quarter
(in millions)															2026						2025
Total stock-based compensation expense															$	30					$	22
Income tax benefit															(5)						(5)
Stock-based compensation expense, net of tax															$	25					$	17

RESTRICTED SHARE UNITS

The table below summarizes RSU activity:

			RSUs						Weighted Average Grant Date Fair Value						Weighted Average Remaining Contractual Term (Years)						Aggregate Intrinsic Value (in millions)
Outstanding as of December 31, 2025			13,120,837						$	29.62					1.8						$	368
Granted			4,030,382						28.41
Vested and released			(2,638,544)						31.31												78
Forfeited			(98,604)						29.72
Outstanding as of March 31, 2026			14,414,071						$	28.97					2.1						$	380

As of March 31, 2026, there was $257 million of unrecognized compensation cost related to unvested RSUs that is expected to be recognized over a weighted average period of 3 years.

PERFORMANCE SHARE UNITS

The table below summarizes PSU activity:

			PSUs						Weighted Average Grant Date Fair Value						Weighted Average Remaining Contractual Term (Years)						Aggregate Intrinsic Value (in millions)
Balance as of December 31, 2025			446,818						$	30.60					2.2						$	13
Granted			520,456						28.39
Forfeited or expired			(26,265)						30.57
Balance as of March 31, 2026			941,009						$	29.38					2.5						$	25

As of March 31, 2026, there was $19 million of unrecognized compensation cost related to unvested PSUs that is expected to be recognized over a weighted average period of 2.5 years.

13. Equity Method Investments

The following table summarizes our equity method investments:

(in millions)			March 31, 2026						December 31, 2025
Nutrabolt			$	1,181					$	1,168
Chobani			379						359
Tractor			62						52
Athletic Brewing			53						53
Other			28						28
Total equity method investments			$	1,703					$	1,660

KEURIG DR PEPPER INC.

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(UNAUDITED, CONTINUED)

14. Income Taxes

Our effective tax rates were as follows:

									First Quarter
															2026						2025
Effective tax rate															24.4		%				21.7		%

For the first quarter of 2026, the change in our effective tax rate was driven by discrete tax impacts associated with the completion of the JV Investment and the creation of the Pod Manufacturing JV.

CASH PAID FOR INCOME TAXES

We paid $47 million and $60 million in cash for income taxes, net of refunds received, during the first quarter of 2026 and 2025, respectively.

15. Accumulated Other Comprehensive Loss

The following table provides a summary of changes in AOCI, net of taxes:

(in millions)			Foreign Currency Translation Adjustments						Pension and Post-Retirement Benefit Liabilities						Cash Flow Hedges						Total
For the first quarter of 2026:
Beginning balance			$	(9)					$	(16)					$	127					$	102
Other comprehensive (loss) income			(242)						(3)						27						(218)
Balance as of March 31, 2026			$	(251)					$	(19)					$	154					$	(116)
For the first quarter of 2025:
Beginning balance			$	(410)					$	(14)					$	148					$	(276)
Other comprehensive income (loss)			13						—						(7)						6
Amounts reclassified from AOCI			—						—						(5)						(5)
Total other comprehensive income (loss)			13						—						(12)						1
Balance as of March 31, 2025			$	(397)					$	(14)					$	136					$	(275)

The following table presents the amount of gains reclassified from AOCI into the unaudited Condensed Consolidated Statements of Income:

			Income Statement Caption												First Quarter
(in millions)																		2026						2025
Cash Flow Hedges
Interest rate contracts			Interest expense, net																		$	(3)					$	(3)
FX contracts			Cost of sales																		3						(5)
Total																					—						(8)
Income tax expense																					—						3
Total, net of tax																					$	—					$	(5)

KEURIG DR PEPPER INC.

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(UNAUDITED, CONTINUED)

16. Other Financial Information

CASH, CASH EQUIVALENTS, RESTRICTED CASH, AND RESTRICTED CASH EQUIVALENTS

The carrying value of cash, cash equivalents, restricted cash, and restricted cash equivalents is valued as of the balance sheet date equating fair value and is classified as Level 1. The following table provides a reconciliation of cash, cash equivalents, restricted cash, and restricted cash equivalents reported within the unaudited Condensed Consolidated Balance Sheets to the total of the same amounts shown in the unaudited Condensed Consolidated Statements of Cash Flows:

(in millions)			March 31, 2026						December 31, 2025
Cash and cash equivalents			$	898					$	1,026
Restricted cash and restricted cash equivalents(1)			17,818						18
Total cash, cash equivalents, restricted cash, and restricted cash equivalents			$	18,716					$	1,044

(1)As of March 31, 2026, Restricted cash and restricted cash equivalents includes approximately $17.8 billion of legally segregated cash to be utilized for the completion of the JDE Peet's Acquisition, which occurred on April 1, 2026.

SELECTED BALANCE SHEET INFORMATION

(in millions)			March 31, 2026						December 31, 2025
Raw materials			$	722					$	706
Work-in-process			10						8
Finished goods			1,097						1,019
Total inventories			$	1,829					$	1,733

Supplier Financing Arrangements

Outstanding obligations under supplier financing arrangements, which are confirmed as valid and included in accounts payable as of March 31, 2026 and December 31, 2025, were $1,473 million and $1,378 million, respectively.

Mandatory Redemption Liability

The fair value of our mandatory redemption liability associated with GHOST was $899 million and $880 million as of March 31, 2026 and December 31, 2025, respectively, and is included within Other non-current liabilities within the unaudited Condensed Consolidated Balance Sheets.

17. Commitments and Contingencies

We are occasionally subject to litigation or other legal proceedings. We accrue for specific legal proceedings when we determine that the likelihood of an unfavorable outcome is probable and the amount of loss can be reasonably estimated, and such accruals were not material in the periods presented. We have also identified certain other legal matters where we believe an unfavorable outcome is reasonably possible and/or for which no estimate of possible losses can be made. We do not believe that the outcome of these, or any other, pending legal matters, individually or collectively, will have a material adverse effect on our results of operations, financial condition, or liquidity.

KEURIG DR PEPPER INC.

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(UNAUDITED, CONTINUED)

ANTITRUST LITIGATION

In February 2014, TreeHouse Foods, Inc. and certain affiliated entities filed suit against our wholly-owned subsidiary, Keurig (formerly known as Green Mountain Coffee Roasters, Inc.), in the U.S. District Court for the Southern District of New York ("SDNY") (TreeHouse Foods, Inc. et al. v. Green Mountain Coffee Roasters, Inc. et al.). The TreeHouse complaint asserted claims under the federal antitrust laws and various state laws, contending that Keurig had monopolized alleged markets for single serve coffee brewers and single serve coffee pods. The TreeHouse complaint sought treble monetary damages, declaratory relief, injunctive relief and attorneys' fees. In the months that followed, a number of additional actions, including claims from another coffee manufacturer (JBR, Inc.), as well as putative class actions on behalf of direct and indirect purchasers of Keurig's products, were filed in various federal district courts, asserting claims and seeking relief substantially similar to the claims asserted and relief sought in the TreeHouse complaint. Additional similar actions were filed by individual direct purchasers (including McLane Company, Inc., BJ's Wholesale Club, Inc., Winn-Dixie Stores Inc., and Bi-Lo Holding LLC) in 2019 and in 2021. All of these actions were transferred to the SDNY for coordinated pre-trial proceedings (In re: Keurig Green Mountain Single-Serve Coffee Antitrust Litigation) (the "Multidistrict Antitrust Litigation").

In July 2020, Keurig reached an agreement with one of the plaintiff groups in the Multidistrict Antitrust Litigation, the putative indirect purchaser class, to settle the claims asserted for $31 million. The settlement class consisted of individuals and entities in the United States that purchased, from persons other than Keurig and not for purposes of resale, Keurig manufactured or licensed single serve beverage portion packs during the applicable class period (beginning in September 2010 for most states). The settlement was approved and paid, and the indirect purchasers' claims have been dismissed.

In October 2025, the SDNY court denied the direct purchasers plaintiffs' motion for class certification. While the court’s order does not preclude individual purchasers from pursuing their own direct claims, the court found that the plaintiffs did not meet the federal requirements to pursue their case on a classwide basis. The direct purchaser plaintiffs filed a petition with the United States Court of Appeals for the Second Circuit, seeking to appeal the SDNY court’s decision; their petition was subsequently denied.

Discovery in all remaining matters pending in the Multidistrict Antitrust Litigation is concluded, with the plaintiffs (which no longer include the purported direct purchaser class) collectively claiming more than $1.5 billion of monetary damages. Keurig strongly disputes the merits of the claims and the calculation of damages. Keurig has fully briefed summary judgment motions that, if successful, would end the cases entirely.

Keurig intends to continue vigorously defending the remaining lawsuits. At this time, we are unable to predict the outcome of these lawsuits, the potential loss or range of loss, if any, associated with the resolution of these lawsuits or any potential effect they may have on us or our results of operations. Accordingly, we have not accrued for a loss contingency. Additionally, as the timelines in these cases may be beyond our control, we can provide no assurance as to whether or when there will be material developments in these matters.

KEURIG DR PEPPER INC.

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(UNAUDITED, CONTINUED)

18. Restructuring

RESTRUCTURING PROGRAM

Network Optimization

In March 2024, we announced a restructuring program designed to more effectively and efficiently meet the needs of consumers and customers. Our restructuring program includes the closure of certain facilities and other costs intended to optimize our manufacturing and distribution footprint throughout our operations.

The restructuring program is expected to incur cumulative pre-tax restructuring charges of approximately $175 million through the end of 2026, primarily comprised of asset related costs.

RESTRUCTURING CHARGES

Restructuring and integration expenses for the defined programs were as follows:

									First Quarter
(in millions)															2026						2025
Network Optimization															$	23					$	2

RESTRUCTURING LIABILITIES

Restructuring liabilities that qualify as exit and disposal costs under U.S. GAAP are included in accounts payable and accrued expenses in the unaudited condensed consolidated financial statements. Restructuring liabilities, primarily consisting of workforce reduction costs, were as follows:

(in millions)			Restructuring Liabilities
Balance as of December 31, 2025			$	8
Cash payments			(3)
Balance as of March 31, 2026			$	5

19. Subsequent Event

COMPLETION OF JDE PEET'S ACQUISITION

On March 27, 2026, the offer period for the issued and outstanding ordinary shares of JDE Peet's expired, and on April 1, 2026, we acquired substantially all of the outstanding issued and ordinary shares of JDE Peet's.

We acquired 96.22% of the issued and outstanding ordinary shares of JDE Peet's on April 1, 2026. The post-closing acceptance period expired on April 13, 2026, and we acquired additional shares on April 15, 2026. Altogether, the total shares acquired represent 97.75% the issued and outstanding ordinary shares of JDE Peet's. We intend to acquire all remaining outstanding shares. The aggregate consideration for the tendered shares was approximately €15.11 billion.

Due to the limited time since the date of the JDE Peet's Acquisition execution, it is impracticable for us to make certain business combination disclosures at this time as we are still gathering information necessary to provide those disclosures. We are unable to present (i) the allocation of the preliminary purchase price to the fair value of assets acquired and liabilities assumed and (ii) supplemental pro forma financial information related to the JDE Peet's Acquisition. We plan to provide this information in our quarterly report on Form 10-Q for the quarter ending June 30, 2026.