Item 1. Financial Statements (Unaudited)

KEURIG DR PEPPER INC.

CONDENSED CONSOLIDATED STATEMENTS OF INCOME

(UNAUDITED)

			Second Quarter												First Six Months
(in millions, except per share data)			2026						2025						2026						2025
Net sales			$	7,309					$	4,163					$	11,285					$	7,798
Cost of sales			4,243						1,908						6,121						3,558
Gross profit			3,066						2,255						5,164						4,240
Selling, general, and administrative expenses			2,397						1,356						3,739						2,548
Other operating expense (income), net			41						1						41						(7)
Income from operations			628						898						1,384						1,699
Interest expense, net			336						180						617						328
Other (income) expense, net			(13)						—						105						(7)
Income before provision for income taxes			305						718						662						1,378
Provision for income taxes			95						171						182						314
Net income			210						547						480						1,064
Less: Net income attributable to non-controlling interests			68						—						68						—
Net income attributable to KDP			$	142					$	547					$	412					$	1,064
Earnings per common share:
Basic			$	0.04					$	0.40					$	0.24					$	0.78
Diluted			0.04						0.40						0.24						0.78
Weighted average common shares outstanding:
Basic			1,360.6						1,358.3						1,359.9						1,357.7
Diluted			1,364.5						1,362.8						1,364.2						1,362.6

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)

			Second Quarter												First Six Months
(in millions)			2026						2025						2026						2025
Net income			$	210					$	547					$	480					$	1,064
Other comprehensive (loss) income:
Foreign currency translation adjustments			—						319						(242)						332
Net change in pension and post-retirement liability, net of tax of $2, $—, $2 and $—, respectively			2						—						(1)						—
Net change in cash flow hedges, net of tax of $(2), $5, $(23), and $6, respectively			(5)						(34)						22						(46)
Total other comprehensive (loss) income			(3)						285						(221)						286
Comprehensive income			207						832						259						1,350
Less: Comprehensive income attributable to non-controlling interests			65						—						65						—
Comprehensive income attributable to KDP			$	142					$	832					$	194					$	1,350

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)			June 30, 2026						December 31, 2025
Assets
Current assets:
Cash and cash equivalents			$	1,517					$	1,026
Restricted cash and restricted cash equivalents			36						18
Trade accounts receivable, net			2,423						1,671
Inventories			3,857						1,733
Prepaid expenses and other current assets			1,628						818
Total current assets			9,461						5,266
Property, plant, and equipment, net			6,323						3,230
Equity method investments			1,733						1,660
Goodwill			29,760						20,247
Intangible assets, net			38,113						23,725
Deferred tax assets			192						36
Other non-current assets			2,037						1,295
Total assets			$	87,619					$	55,459
Liabilities, convertible preferred stock, and equity
Current liabilities:
Accounts payable			$	6,293					$	2,996
Accrued expenses			2,430						1,379
Structured payables			1,018						25
Short-term borrowings and current portion of long-term obligations			8,394						3,105
Other current liabilities			1,604						785
Total current liabilities			19,739						8,290
Long-term obligations			21,586						13,036
Deferred tax liabilities			8,936						5,526
Other non-current liabilities			3,712						3,091
Total liabilities			53,973						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 June 30, 2026 and December 31, 2025, respectively. Liquidation preference of $4,500 million as of June 30, 2026			4,418						—
Stockholders' equity:
Preferred stock, $0.01 par value, 10,500,000 shares authorized, no shares issued as of June 30, 2026 and December 31, 2025			—						—
Common stock, $0.01 par value, 2,000,000,000 shares authorized, 1,360,776,911 and 1,358,663,795 shares issued and outstanding as of June 30, 2026 and December 31, 2025, respectively			14						14
Additional paid-in capital			19,808						19,778
Retained earnings			5,326						5,622
Accumulated other comprehensive (loss) income			(116)						102
Total stockholders' equity			25,032						25,516
Non-controlling interests			4,196						—
Total equity			29,228						25,516
Total liabilities, convertible preferred stock, and equity			$	87,619					$	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 Six Months
(in millions)			2026						2025
Operating activities:
Net income			$	480					$	1,064
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation expense			322						217
Amortization of intangibles			161						68
Amortization of inventory step-up			314						15
Other amortization expense			82						63
Provision for sales returns			67						24
Deferred income taxes			(22)						4
Employee stock-based compensation expense			62						45
Amortization of deferred financing costs			109						6
Loss (gain) on disposal of property, plant, and equipment			10						(6)
Unrealized gain on foreign currency			48						(6)
Unrealized gain on derivatives			(171)						(56)
Settlements of interest rate contracts			70						—
Earnings of equity method investments			(40)						(27)
Earned equity from distribution arrangements			(8)						(10)
Other, net			10						(11)
Changes in assets and liabilities, excluding the effects of business acquisitions:
Trade accounts receivable			50						3
Inventories			133						(431)
Income taxes receivable and payable, net			15						(86)
Other current and non-current assets			(324)						(136)
Accounts payable and accrued expenses			(88)						(93)
Other current and non-current liabilities			(104)						(7)
Net change in operating assets and liabilities			(318)						(750)
Net cash provided by operating activities			1,176						640
Investing activities:
Acquisitions of businesses, net of cash acquired			(16,615)						(111)
Purchases of property, plant, and equipment			(297)						(226)
Proceeds from sales of property, plant, and equipment			19						13
Purchases of intangibles			(4)						(16)
Other, net			(2)						62
Net cash used in investing activities			$	(16,899)					$	(278)

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 Six Months
(in millions)			2026						2025
Financing activities:
Proceeds from issuance of Notes			$	6,108					$	2,000
Repayments of Notes			—						(529)
Net repayment of commercial paper			(232)						(139)
Proceeds from delayed draw term loan			3,626						—
Repayment of term loan			(405)						(990)
Net proceeds from issuance of convertible preferred stock			4,395						—
Net proceeds from sale of non-controlling interest			3,899						—
Proceeds from structured payables			333						16
Repayments of structured payables			(343)						(26)
Cash dividends paid to common shareholders			(624)						(625)
Cash dividends paid to preferred shareholders			(54)						—
Repurchases of common stock, inclusive of excise tax obligation			—						(9)
Tax withholdings related to net share settlements			(31)						(28)
Payments on finance leases			(77)						(63)
Deferred financing charges paid			(44)						(12)
Other, net			(5)						(4)
Net cash provided by (used in) financing activities			16,546						(409)
Cash, cash equivalents, restricted cash, and restricted cash equivalents:
Net change from operating, investing, and financing activities			823						(47)
Effect of exchange rate changes			(314)						4
Beginning balance			1,044						608
Ending balance			$	1,553					$	565
Supplemental cash flow disclosures:
Accrued consideration to untendered shareholders in the JDE Peet's Acquisition			$	402					$	—
Capital expenditures included in accounts payable and accrued expenses			207						155
Dividends to common shareholders declared but not yet paid			314						312
Dividends to Preferred Investors declared but not yet paid			28						—
Cash paid for interest			349						277

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 Loss						Total Stockholders' Equity						Non-Controlling Interests						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 to common shareholders, $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
Net income															—						—						—						142						—						142						68						210
Other comprehensive loss															—						—						—						—						—						—						(3)						(3)
Dividends declared to common shareholders, $0.23 per share															—						—						—						(314)						—						(314)						—						(314)
Dividends declared to Preferred Investors															—						—						—						(82)						—						(82)						—						(82)
Shares issued under employee stock-based compensation plans and other															0.4						—						—						—						—						—						—						—
Tax withholdings related to net share settlements															—						—						(6)						—						—						(6)						—						(6)
Stock-based compensation															—						—						31						—						—						31						—						31
Non-controlling interests acquired in business combination															—						—						—						—						—						—						210						210
Balance as of June 30, 2026															1,360.8						$	14					$	19,808					$	5,326					$	(116)					$	25,032					$	4,196					$	29,228

			Common Stock Issued												Additional Paid-In Capital						Retained Earnings						Accumulated Other Comprehensive Income (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
Net income			—						—						—						547						—						547
Other comprehensive income			—						—						—						—						285						285
Dividends declared, $0.23 per share			—						—						—						(312)						—						(312)
Shares issued under employee stock-based compensation plans and other			0.2						—						—						—						—						—
Tax withholdings related to net share settlements			—						—						(5)						—						—						(5)
Stock-based compensation			—						—						23						—						—						23
Balance as of June 30, 2025			1,358.4						$	14					$	19,729					$	5,232					$	10					$	24,985

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 unaudited condensed consolidated financial statements include the results of operations of JDE Peet's beginning April 1, 2026. Refer to Note 2 for information about the JDE Peet's Acquisition.

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 "second quarter" indicate the quarterly periods ended June 30, 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.

KEURIG DR PEPPER INC.

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(UNAUDITED, CONTINUED)

2. JDE Peet's Acquisition

OVERVIEW AND TOTAL CONSIDERATION EXCHANGED

JDE Peet's is a global coffee and tea company, serving more than 100 markets, with a portfolio of leading brands including Jacobs, L'OR, and Peet's, alongside a collection of local icons. 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.

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, or 96.22%, of the issued and outstanding ordinary shares of JDE Peet's. 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% of the issued and outstanding ordinary shares of JDE Peet's. We intend to acquire all remaining outstanding shares. The aggregate cash paid for the tendered shares was approximately €15.1 billion ($17.4 billion).

We intend to combine KDP's existing coffee business and the business of JDE Peet's and its subsidiaries to form one of the two independent, US-listed publicly traded companies resulting from the Separation.

Under the acquisition method of accounting, total consideration was as follows:

(in millions)						Amount
Net cash consideration paid						$	17,430
Liability to untendered shareholders(1)						402
Consideration related to stock-based compensation awards(2)						104
Settlement of preexisting relationships(3)						(6)
Total consideration						$	17,930

(1)Represents the estimated deferred consideration we expect to pay to acquire the remaining 2.25% of outstanding ordinary shares of JDE Peet's not yet acquired at the close of the post-closing acceptance period on April 13, 2026. The estimated deferred consideration has been recorded in Other current liabilities as the remaining shares are expected to be acquired through statutory buy-out proceedings, which grant us the legal right to compel the remaining shareholders to sell their existing shares. These buy-out proceedings have commenced as of June 30, 2026.

(2)All unvested JDE Peet's stock-based compensation awards under JDE Peet's employee incentive plans that were granted prior to the signing of the JDE Peet's Acquisition Agreement were accelerated and vested on or prior to the closing of the JDE Peet's Acquisition. The portion of fair value of these accelerated awards that relates to pre-combination service is included in consideration transferred; the remainder is accounted for as post-combination expense. Additionally, between September 2025 and March 2026, JDE Peet's granted a total of 879,750 stock-based compensation awards in the form of RSUs and PSUs. Pursuant to the JDE Peet's Acquisition Agreement, these awards were replaced by KDP RSUs with the same vesting period as the original awards in accordance with applicable “roll-over” provisions in the relevant JDE Peet's employee incentive plans. A portion of the fair value of these awards represents consideration transferred.

(3)Represents the carrying value of preexisting balances between KDP and JDE Peet's, which are deemed to approximate fair value.

During the first six months 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. Refer to Note 3 for additional information.

• Senior Unsecured Notes of approximately $6 billion. Refer to Note 3 for additional information.

• JV Investment of $4 billion. Refer to Note 4 for additional information.

• Issuance of Convertible Preferred Stock of $4.5 billion. Refer to Note 5 for additional information.

KEURIG DR PEPPER INC.

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(UNAUDITED, CONTINUED)

ALLOCATION OF CONSIDERATION EXCHANGED

Our preliminary allocation of consideration exchanged to the assets acquired, liabilities assumed, and non-controlling interests, in the JDE Peet's Acquisition is based on estimated fair values as of the acquisition date and is subject to change as additional information is obtained within the measurement period.

The following is a summary of the preliminary allocation of consideration exchanged to the estimated fair values of assets acquired, liabilities assumed, and non-controlling interests, in the JDE Peet's Acquisition as of April 1, 2026:

(in millions)			Fair Value
Cash, cash equivalents, restricted cash, and restricted cash equivalents			$	913
Trade accounts receivable			885
Inventories(1)			2,574
Prepaid expenses and other current assets			593
Property, plant, and equipment(2)			3,122
Intangible assets(3)			14,760
Deferred tax assets			181
Other non-current assets			911
Accounts payable			(3,875)
Accrued expenses			(1,065)
Structured payables			(1,008)
Short-term borrowings and current portion of long-term obligations(4)			(732)
Other current liabilities			(435)
Long-term obligations, non-current portion(4)			(4,239)
Deferred tax liabilities(5)			(3,565)
Other non-current liabilities			(540)
Net assets acquired			8,480
Goodwill			9,660
Less: non-controlling interests(6)			(210)
Total consideration			$	17,930

(1)We preliminarily valued work-in-process and finished goods inventory using a comparative sales method approach, resulting in a step-up of $361 million, of which approximately $314 million was recognized in cost of sales in the second quarter of 2026 as the related inventory was sold during that period. Raw materials were carried at net book value.

(2)We preliminarily valued personal property using the cost approach, which is based upon current replacement cost of the asset as newly adjusted for any depreciation attributable to physical, functional and economic factors. We preliminarily assigned personal property a useful life ranging from 4 to 20 years. We preliminarily valued real property using the cost approach and land using the sales comparison approach. We preliminarily assigned real property a useful life between 6 and 52 years.

(3)See tabular disclosure of intangible assets other than goodwill below for discussion of preliminary valuation methodologies.

(4)For long-term obligations (both current and non-current portions) with observable market trading activity, we preliminarily valued the debt instruments using quoted prices on active markets. For long-term obligations without such markets, we preliminarily valued the debt instruments using a discounted cash flow methodology. Discount rates were generally determined using market yields for instruments with a BBB credit rating, adjusted for estimated company-specific risk.

(5)Net deferred tax liabilities represented the expected future tax consequences of temporary differences between the fair values of the assets acquired and liabilities assumed and their tax bases. We used a preliminary consolidated tax rate to determine the net deferred tax liabilities and will record measurement period adjustments as we apply the appropriate tax rate for each jurisdiction within the acquired business.

(6)Non-controlling interests were measured using a combination of approaches, including the income approach and the market approach.

KEURIG DR PEPPER INC.

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(UNAUDITED, CONTINUED)

The JDE Peet's Acquisition preliminarily resulted in $9,660 million of goodwill. The preliminary goodwill recognized is attributable to expected synergies from combining our coffee operations with JDE Peet's' global coffee and tea platform, including revenue synergies driven by complementary brand portfolios having exposure to both in-home and away-from-home consumption channels, manufacturing and supply chain optimization, and operational and general and administrative cost synergies. The goodwill also reflects the value of JDE Peet's' assembled workforce, which does not qualify for separate recognition. Management is currently assessing the deductibility of the goodwill created in the JDE Peet's Acquisition for tax purposes.

The preliminary allocation of consideration exchanged to intangible assets other than goodwill acquired is as follows:

(in millions)			Weighted Average Estimated Useful Life (in years)						Fair Value
Brands with indefinite lives(1)			Indefinite						$	9,790
Brands with definite lives(1)			15						3,050
Customer relationships(2)			18						1,520
Acquired technology(3)			9						400
Total intangible assets other than goodwill									$	14,760

(1)We preliminarily valued these assets utilizing the multi-period excess earnings method, a form of the income approach.

(2)We preliminarily valued these assets using the distributor method, a form of the income approach.

(3)We preliminarily valued these assets utilizing a combination of the income approach and the cost approach.

The non-recurring fair value measurements associated with the purchase price allocation include significant unobservable inputs, such as discount rates, projected revenue growth rates, customer attrition rates, and useful life assumptions. Changes in these assumptions could result in changes to our fair value measurements.

TRANSACTION EXPENSES

In connection with the acquisition, the Company incurred acquisition-related costs of $126 million, consisting primarily of legal, advisory, financing, and other transaction costs. These costs were accounted for separately from the business combination and recognized as incurred, with $120 million recognized prior to the acquisition date and $6 million recognized subsequent to the acquisition date, within SG&A expenses.

PRO FORMA INFORMATION

Assuming JDE Peet's had been acquired as of December 31, 2024 and the results of JDE Peet's had been included in KDP’s results of operations beginning on January 1, 2025, the following table provides estimated unaudited pro forma results of operations for the second quarter and first six months of 2026 and 2025 under U.S. GAAP:

			Second Quarter												First Six Months
(unaudited, in millions)			2026						2025						2026						2025
Net sales			$	7,309					$	7,247					$	14,129					$	13,266
Net income			508						470						735						633

The pro forma amounts above include non-recurring adjustments for the amortization of the inventory step-up, as well as the impacts of transaction costs and post-combination stock-based compensation expenses, and the associated tax effects.

Estimated unaudited pro forma information is not necessarily indicative of the results that actually would have occurred had the JDE Peet's Acquisition been completed on the date indicated, or of future operating results.

For net sales and earnings of JDE Peet's since the acquisition date, refer to the JDE Peet's segment in Note 10.

KEURIG DR PEPPER INC.

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(UNAUDITED, CONTINUED)

3. Long-term Obligations and Borrowing Arrangements

The following table summarizes our long-term obligations:

(in millions)			June 30, 2026						December 31, 2025
Notes			$	24,817					$	13,931
Less: current portion of long-term obligations			(3,231)						(895)
Long-term obligations			$	21,586					$	13,036

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

(in millions)			June 30, 2026						December 31, 2025
Commercial paper notes			$	1,978					$	2,210
Delayed draw term loan			3,185						—
Current portion of long-term obligations:
Notes			3,231						895
Short-term borrowings and current portion of long-term obligations			$	8,394					$	3,105

KEURIG DR PEPPER INC.

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(UNAUDITED, CONTINUED)

SENIOR UNSECURED NOTES

(in millions, except %)			Maturity Date						Rate						June 30, 2026						December 31, 2025
USD Notes
2026 Notes			September 15, 2026						2.550%						$	400					$	400
2026-B Notes			November 15, 2026						Floating(1)						500						500
2027 JDE Peet's Notes(2)			January 15, 2027						1.375%						750						—
2027-B Notes			March 15, 2027						Floating(1)						350						350
2027-C Notes			March 15, 2027						5.100%						750						750
2027 Notes			June 15, 2027						3.430%						500						500
2028 Notes			May 15, 2028						4.350%						500						500
2028 DPS Merger Notes			May 25, 2028						4.597%						1,112						1,112
2029-B Notes			March 15, 2029						5.050%						750						750
2029 Maple Notes(3)			March 26, 2029						4.750%						550						—
2029 Notes			April 15, 2029						3.950%						1,000						1,000
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 Maple Notes(3)			March 26, 2031						5.050%						600						—
2031 JDE Peet's Notes(2)			September 24, 2031						2.250%						500						—
2032 Notes			April 15, 2032						4.050%						850						850
2034 Notes			March 15, 2034						5.300%						650						650
2035 Notes			May 15, 2035						5.150%						500						500
2036 Maple Notes(3)			March 26, 2036						5.700%						700						—
2038 DPS 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 DPS 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 Maple Notes(3)			March 26, 2056						6.625%						700						—

KEURIG DR PEPPER INC.

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(UNAUDITED, CONTINUED)

(in millions, except %)			Maturity Date						Rate						June 30, 2026						December 31, 2025
EUR Notes
2027 Euro JDE Peet's Notes (€600 million)(2)			December 11, 2027						Floating(1)						$	686					$	—
2028 Euro JDE Peet's Notes (€600 million)(2)			February 9, 2028						0.625%						686						—
2028 Euro Maple Notes (€600 million)(3)			March 26, 2028						3.495%						683						—
2029 Euro JDE Peet's Notes (€750 million)(2)			January 16, 2029						0.500%						857						—
2030 Euro JDE Peet's Notes (€500 million)(2)			January 23, 2030						4.125%						571						—
2030 Euro Maple Notes (€800 million)(3)			March 26, 2030						3.881%						911						—
2032 Euro Maple Notes (€800 million)(3)			March 26, 2032						4.224%						911						—
2033 Euro JDE Peet's Notes (€500 million)(2)			June 16, 2033						1.125%						571						—
2034 Euro JDE Peet's Notes (€500 million)(2)			January 23, 2034						4.500%						571						—
2035 Euro Maple Notes (€800 million)(3)			March 26, 2035						4.728%						911						—
Total
Principal amount															25,222						14,064
Adjustment from principal amount to carrying amount(4)															(405)						(133)
Carrying amount															$	24,817					$	13,931

(1)Our USD 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. Our EUR floating rate note bears interest at a rate equal to the EURIBOR 3-month rate plus a spread of 0.700%.

(2)These notes (together, the JDE Peet's Notes) were issued by JDE Peet's, assumed as part of the JDE Peet's Acquisition, and are guaranteed by Maple, Keurig Dr Pepper Inc., and certain of our subsidiaries that guarantee our other senior indebtedness. The guarantees from Keurig Dr Pepper Inc. and our subsidiaries (other than Maple) will terminate upon the Separation.

(3)These notes (together, the Maple Notes) were issued by Maple and are guaranteed by JDE Peet’s, Keurig Dr Pepper Inc., and certain of our subsidiaries that guarantee our other senior indebtedness. The guarantees from Keurig Dr Pepper Inc. and our subsidiaries (other than JDE Peet’s) will terminate upon the Separation.

(4)The carrying amount includes unamortized discounts, debt issuance costs, and fair value adjustments related to the DPS Merger and the JDE Peet's Acquisition.

On March 26, 2026, Maple completed the issuance of the 2029 Maple Notes, 2031 Maple Notes, 2036 Maple Notes, and 2056 Maple 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 Maple Notes, 2030 Euro Maple Notes, 2032 Euro Maple Notes, and 2035 Euro Maple 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 partially fund the JDE Peet's Acquisition and to pay related fees and expenses in connection with the JDE Peet's Acquisition and related transactions.

On May 21, 2026, JDE Peet's agreed to fully and unconditionally guarantee, on a joint and several basis with Keurig Dr Pepper Inc. and certain of our other subsidiaries that guarantee our other senior indebtedness, the obligations of Maple in respect of the Maple Notes and the Delayed Draw Term Loan Agreement, and to fully and unconditionally guarantee, on a joint and several basis with Maple and certain of our subsidiaries that guarantee our other senior indebtedness, KDP’s obligations in respect of the KDP Notes and the revolving credit facility, with JDE Peet's’ guarantees of the KDP Notes and the revolving credit facility automatically terminating upon the Separation.

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. During the second quarter of 2026, we repaid €349 million of the Delayed Draw Term Loan. As of June 30, 2026, we had €2.8 billion outstanding under the facility, and €736 million remained available and undrawn. The weighted average interest rates on these borrowings were 3.574% and 3.572% for the second quarter and first six months of 2026, respectively.

As of June 30, 2026, we were in compliance with all covenants 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						June 30, 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 June 30, 2026.

As of June 30, 2026, we were in compliance with all covenants with respect to the 2025 Revolving Credit Agreement.

Commercial Paper Program

			Second Quarter												First Six Months
(in millions, except %)			2026						2025						2026						2025
Weighted average commercial paper borrowings			$	2,529					$	2,317					$	2,489					$	2,498
Weighted average borrowing rates			4.38		%				4.67		%				4.20		%				4.65		%

KEURIG DR PEPPER INC.

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(UNAUDITED, CONTINUED)

Other Facilities

In addition to the portion of the 2025 Revolving Credit Agreement reserved for issuance of letters of credit, we have an incremental uncommitted letter of credit facility. As of June 30, 2026, $150 million was available for the issuance of letters of credit under this facility, $63 million of which was utilized. We also have a variety of other uncommitted liquidity facilities available to us as of June 30, 2026.

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 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 of the Notes and related unamortized costs to be incurred at such date. The fair value of our Notes was $24,025 million and $13,196 million as of June 30, 2026 and December 31, 2025, respectively.

4. 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. There were no distributions declared or paid during the first six months of 2026.

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 interests on our unaudited Condensed Consolidated Balance Sheets and a subsequent $101 million decrease in the 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. Net earnings attributable to the JV Investors were $64 million for the second quarter and first six months of 2026 and are included in Net income attributable to non-controlling interests in the unaudited Condensed Consolidated Statements of Income.

KEURIG DR PEPPER INC.

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(UNAUDITED, CONTINUED)

5. 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 preferred 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 next dividend that 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. During the second quarter of 2026, we declared and paid preferred dividends of $54 million. We also declared $28 million of common dividends to the Preferred Investors, which were accrued but not yet paid as of June 30, 2026, and will be used to reduce the preferred dividend in the next quarter. Refer to Note 6 for the impacts of the Convertible Preferred Stock on EPS.

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.

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 June 30, 2026.

KEURIG DR PEPPER INC.

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(UNAUDITED, CONTINUED)

6. Earnings Per Share

Basic EPS reflects net income attributable to common stockholders after consideration of participating securities. The Convertible Preferred Stock is a participating security for purposes of calculating EPS. The Preferred Investors are entitled to participate in dividends declared or paid on the common shares on an as-converted basis (provided that any such dividends on the common stock on an as-converted basis received by Preferred Investors will reduce, on a dollar-for-dollar basis, the next preferred dividend such Preferred Investors are entitled to otherwise receive), and therefore, beginning in the second quarter of 2026, net income attributable to common shareholders is computed under the two-class method.

The following table presents our basic and diluted EPS and shares outstanding:

			Second Quarter												First Six Months
(in millions, except per share data)			2026						2025						2026						2025
Net income attributable to KDP			$	142					$	547					$	412					$	1,064
Less: Net income allocated to Preferred Investors(1)			82						—						82						—
Net income attributable to common shareholders			$	60					$	547					$	330					$	1,064
Weighted average common shares outstanding			1,360.6						1,358.3						1,359.9						1,357.7
Dilutive effect of stock-based awards			3.9						4.5						4.3						4.9
Weighted average common shares outstanding and common stock equivalents			1,364.5						1,362.8						1,364.2						1,362.6
Basic EPS			$	0.04					$	0.40					$	0.24					$	0.78
Diluted EPS			0.04						0.40						0.24						0.78
Anti-dilutive shares excluded from the diluted weighted average shares outstanding calculation			1.6						0.4						2.1						0.4

(1)For the periods presented, the preferred dividend rate was determined to be the greater amount used to determine the net income allocated to the Preferred Investors.

7. 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						KDP International						JDE Peet's						Total
Balance as of December 31, 2025			$	8,870					$	8,622					$	2,755					$	—					$	20,247
Acquisition(1)			—						—						—						9,660						9,660
Foreign currency translation			—						—						(60)						(87)						(147)
Balance as of June 30, 2026			$	8,870					$	8,622					$	2,695					$	9,573					$	29,760

(1)Amount represents the preliminary goodwill recorded as a result of the JDE Peet's Acquisition. Refer to Note 2 for additional information.

KEURIG DR PEPPER INC.

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(UNAUDITED, CONTINUED)

INTANGIBLE ASSETS OTHER THAN GOODWILL

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

			June 30, 2026																		December 31, 2025
(in millions)			Gross Amount						Accumulated Amortization						Net Amount						Gross Amount						Accumulated Amortization						Net Amount
Intangible assets with definite lives:
Brands(1)			$	3,092					$	(94)					$	2,998					$	76					$	(40)					$	36
Customer relationships(1)			2,177						(339)						1,838						683						(301)						382
Acquired technology(1)			1,541						(742)						799						1,146						(694)						452
Distribution rights			162						(48)						114						162						(35)						127
Contractual arrangements			146						(35)						111						146						(30)						116
Trade names			126						(126)						—						126						(126)						—
Other			25						(3)						22						25						(3)						22
Total intangible assets with definite lives			$	7,269					$	(1,387)					$	5,882					$	2,364					$	(1,229)					$	1,135
Intangible assets with indefinite lives:
Brands(1)															$	29,632																	$	19,993
Trade names															2,478																		2,478
Distribution rights															121																		119
Total intangible assets with indefinite lives															32,231																		22,590
Total intangible assets, net															$	38,113																	$	23,725

(1)We recorded additional preliminary intangible assets other than goodwill as a result of the JDE Peet's Acquisition. Refer to Note 2 for additional information on the amounts recorded by asset class.

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

			Second Quarter												First Six Months
(in millions)			2026						2025						2026						2025
Amortization expense			$	124					$	34					$	161					$	68

8. Risk Management and Financial Instruments

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, cross-currency interest rate contracts, FX forward contracts, commodity forward, future, swap, and option contracts, supplier pricing agreements, and other non-derivative financial instruments. 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.

KEURIG DR PEPPER INC.

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(UNAUDITED, CONTINUED)

We also formally designate certain of our foreign-denominated debt instruments that meet the established accounting criteria under U.S. GAAP as net investment hedges. For such designated instruments, the effective portion of the FX translation gains or losses on the foreign-denominated debt is recorded in foreign currency translation adjustments in AOCI, and will remain in AOCI until the net investment in the foreign operation is sold or otherwise disposed of. Any ineffective portion of the hedge is recognized in earnings in the period in which it arises. We use the spot method to assess the effectiveness of our net investment hedges.

If a cash flow hedge or net investment 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 RATE RISK

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 June 30, 2026, economic interest rate derivative instruments have maturities ranging from September 2031 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 June 30, 2026.

FOREIGN EXCHANGE RISK

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 and cross-currency interest rate 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.

KEURIG DR PEPPER INC.

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(UNAUDITED, CONTINUED)

Changes in the fair value of these instruments are recorded in earnings throughout the term of the derivative instrument and are reported in Other expense (income) in the unaudited Condensed Consolidated Statements of Income as the associated risk. As of June 30, 2026, these FX contracts have maturities ranging from July 2026 to February 2034.

Additionally, in order to complete the JDE Peet's Acquisition on April 1, 2026, we had 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. As of June 30, 2026, all of these contracts were settled.

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 June 30, 2026, these FX contracts have maturities ranging from July 2026 to October 2027.

Net Investment Hedges

We designate certain of our Euro-denominated debt instruments as net investment hedges in order to manage the exposure of our investments in certain of our subsidiaries resulting from changes in the FX rates described above. The intent of these hedges is to offset the impact of changes in the FX rate on our consolidated financial statements. During the second quarter of 2026, we designated certain of our Euro Maple Notes, which have maturities from 2028 to 2035, as well as borrowings under our Delayed Draw Term Loan Agreement, as net investment hedges of our investment in a Euro functional currency subsidiary.

As of June 30, 2026, the notional amount of our Euro-denominated debt designated as net investment hedges was $6,601 million. We recognized $69 million of gains in other comprehensive income related to these hedges during the second quarter and first six months of 2026. We did not reclassify any gains or losses related to net investment hedges from AOCI into the unaudited Condensed Consolidated Statements of Income or record any ineffectiveness during the periods presented.

COMMODITY PRICE RISK

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 June 30, 2026, these commodity contracts have maturities ranging from July 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)			June 30, 2026						December 31, 2025
Interest rate contracts
Pay-variable interest rate swaps, not designated as hedging instruments			$	2,014					$	—
Forward starting swaps, not designated as hedging instruments			—						2,300
Forward starting swaps, designated as cash flow hedges			—						1,500
FX contracts
Forward contracts, not designated as hedging instruments			3,796						12,436
Forward contracts, designated as cash flow hedges			1,351						597
Cross-currency pay-fixed interest rate swaps, not designated as hedging instruments			1,252						—
Commodity contracts, not designated as hedging instruments(1)			1,102						595

(1)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 interest rate contracts, FX forward contracts, cross-currency interest rate contracts, and commodity 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 and EURIBOR 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.

KEURIG DR PEPPER INC.

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(UNAUDITED, CONTINUED)

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						June 30, 2026						December 31, 2025
Assets:
FX contracts			Prepaid expenses and other current assets						$	63					$	5
Cross-currency interest rate contracts			Prepaid expenses and other current assets						9						—
Commodity contracts			Prepaid expenses and other current assets						102						47
Interest rate contracts			Other non-current assets						1						—
Commodity contracts			Other non-current assets						9						3
Liabilities:
Interest rate contracts			Other current liabilities						21						16
FX contracts			Other current liabilities						65						38
Cross-currency interest rate contracts			Other current liabilities						33						—
Commodity contracts			Other current liabilities						37						9
Interest rate contracts			Other non-current liabilities						379						381
Cross-currency interest rate contracts			Other non-current liabilities						30						—
Commodity contracts			Other non-current liabilities						5						23

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						June 30, 2026						December 31, 2025
Assets:
FX contracts			Prepaid expenses and other current assets						$	11					$	2
FX contracts			Other non-current assets						14						1
Interest rate contracts			Other non-current assets						—						37
Liabilities:
FX contracts			Other current liabilities						8						16
Interest rate contracts			Other current liabilities						—						2

KEURIG DR PEPPER INC.

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(UNAUDITED, CONTINUED)

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						Second Quarter												First Six Months
(in millions)						2026						2025						2026						2025
Interest rate contracts			Interest expense, net						$	(5)					$	(2)					$	(4)					$	(34)
FX contracts			Cost of sales						(1)						(2)						—						(3)
FX contracts			Other (income) expense, net						(28)						11						86						14
Cross-currency interest rate contracts			Other (income) expense, net						(9)						—						(9)						—
Commodity contracts			Cost of sales						(28)						(10)						(73)						(27)
Commodity contracts			SG&A expenses						11						2						(58)						—

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						Second Quarter												First Six Months
(in millions)						2026						2025						2026						2025
Interest rate contracts			Interest expense, net						$	(6)					$	(4)					$	(9)					$	(7)
FX contracts			Cost of sales						6						(8)						9						(13)

We expect to reclassify approximately $22 million of pre-tax net gains and $16 million of pre-tax net gains from AOCI into net income during the next twelve months related to interest rate contracts and FX contracts, respectively.

9. Leases

LESSEE

The following table presents the components of lease cost:

			Second Quarter												First Six Months
(in millions)			2026						2025						2026						2025
Operating lease cost			$	72					$	46					$	117					$	90
Finance lease cost
Amortization of right-of-use assets			33						28						63						56
Interest on lease liabilities			12						9						24						18
Variable lease cost(1)			12						9						22						18
Short-term lease cost			4						—						4						—
Total lease cost			$	133					$	92					$	230					$	182

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

KEURIG DR PEPPER INC.

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(UNAUDITED, CONTINUED)

The following tables present supplemental information about our leases:

(in millions)						Balance Sheet Location						June 30, 2026						December 31, 2025
Assets:
Operating lease right-of-use assets						Other non-current assets						$	1,107					$	845
Finance lease right-of-use assets(1)						Property, plant, and equipment, net						1,030						919
Liabilities:
Operating lease liability						Other current liabilities						210						127
Finance lease liability						Other current liabilities						191						179
Operating lease liability						Other non-current liabilities						951						764
Finance lease liability						Other non-current liabilities						835						745

(1)Amounts are presented net of accumulated amortization of $485 million and $426 million as of June 30, 2026 and December 31, 2025, respectively.

			First Six Months
(in millions)			2026						2025
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows from operating leases			$	108					$	85
Operating cash flows from finance leases			24						18
Financing cash flows from finance leases			77						63
Right-of-use assets obtained in exchange for lease obligations:
Operating leases(1)			82						21
Finance leases			133						92

(1) Includes impacts from operating lease modifications of $26 million during the quarter ended June 30, 2026.

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

			June 30, 2026						December 31, 2025
Weighted average discount rate
Operating leases			4.2		%				5.3		%
Finance leases			4.8		%				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-cancelable leases that have commenced and are reflected in the unaudited Condensed Consolidated Balance Sheets as of June 30, 2026 were as follows:

(in millions)			Operating Leases						Finance Leases
Remainder of 2026			$	122					$	137
2027			243						166
2028			192						153
2029			166						143
2030			146						130
2031			121						103
Thereafter			430						407
Total future minimum lease payments			1,420						1,239
Less: imputed interest			(259)						(213)
Present value of minimum lease payments			$	1,161					$	1,026

Significant Leases that Have Not Yet Commenced

As of June 30, 2026, we have entered into leases that have not yet commenced with estimated aggregated future lease payments of approximately $239 million. These leases will commence between 2026 and 2028, with initial lease terms ranging from 2 years to 15 years.

LESSOR

We lease coffee machines to customers under contractual arrangements that are primarily recognized as operating lease arrangements. Sales-type leases are immaterial. Lease revenue represented less than 1% of our consolidated net sales for all periods presented.

KEURIG DR PEPPER INC.

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(UNAUDITED, CONTINUED)

10. Segments

Our four operating and reportable segments are described below. The U.S. Refreshment Beverages, U.S. Coffee, and KDP International operating and reportable segments remain unchanged as a result of the JDE Peet’s Acquisition. The JDE Peet's segment reflects the operations of JDE Peet's, which was acquired on April 1, 2026.

• 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 KDP 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.

• The JDE Peet's segment reflects sales from the manufacture and distribution of coffee, tea, and other products globally, including the following:

◦Sales from the manufacture and distribution of single serve, ground, instant, and whole bean coffee, as well as related products, including tea and cocoa, from owned brands, partner brands, and private label owners.

◦Sales of whole bean coffee, beverages, tea, and related products through retail, e-commerce, and licensed stores.

◦Sales from away-from-home activities, providing hot beverage solutions and related services to businesses and institutions.

Segment results are based on management reports provided to Tim Cofer, our CEO and CODM. 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 expense (income)" includes Other operating expense (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. JDE Peet's segment results contain certain corporate costs directly attributable to the JDE Peet's segment in SG&A expenses and Other segment expense (income).

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						KDP International						JDE Peet's**(1)**						Total
Second Quarter of 2026
Net sales			$	2,925					$	918					$	664					$	2,802					$	7,309
Cost of sales			1,225						564						342						2,084
SG&A expenses			843						159						170						785
Other segment expense (income)			—						46						—						(5)
Income (loss) from operations - reportable segments			$	857					$	149					$	152					$	(62)					$	1,096
Unallocated corporate costs																											(468)
Income from operations																											628
Interest expense, net																											336
Other income, net																											(13)
Income before provision for income taxes																											$	305
Second Quarter of 2025
Net sales			$	2,660					$	948					$	555					$	—					$	4,163
Cost of sales			1,099						551						260						—
SG&A expenses			815						163						152						—
Other segment expense			—						1						—						—
Income from operations - reportable segments			$	746					$	233					$	143					$	—					$	1,122
Unallocated corporate costs																											(224)
Income from operations																											898
Interest expense, net																											180
Income before provision for income taxes																											$	718

(1)The JDE Peet's segment was acquired on April 1, 2026. As such, amounts presented above only include activity subsequent to the date of acquisition. For selected pro forma information, refer to Note 2.

KEURIG DR PEPPER INC.

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(UNAUDITED, CONTINUED)

(in millions)			U.S. Refreshment Beverages						U.S. Coffee						KDP International						JDE Peet's**(1)**						Total
First Six Months of 2026
Net sales			$	5,524					$	1,775					$	1,184					$	2,802					$	11,285
Cost of sales			2,291						1,103						632						2,084
SG&A expenses			1,655						317						315						785
Other segment expense (income)			—						46						—						(5)
Income (loss) from operations - reportable segments			$	1,578					$	309					$	237					$	(62)					$	2,062
Unallocated corporate costs																											(678)
Income from operations																											1,384
Interest expense, net																											617
Other expense, net																											105
Income before provision for income taxes																											$	662
First Six Months of 2025
Net sales			$	4,983					$	1,825					$	990					$	—					$	7,798
Cost of sales			2,036						1,074						488						—
SG&A expenses			1,548						314						271						—
Other segment (income) expense			(1)						2						(2)						—
Income from operations - reportable segments			$	1,400					$	435					$	233					$	—					$	2,068
Unallocated corporate costs																											(369)
Income from operations																											1,699
Interest expense, net																											328
Other income, net																											(7)
Income before provision for income taxes																											$	1,378

(1)The JDE Peet's segment was acquired on April 1, 2026. As such, amounts presented above only include activity subsequent to the date of acquisition. For selected pro forma information, refer to Note 2.

KEURIG DR PEPPER INC.

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(UNAUDITED, CONTINUED)

11. Net Sales

The following table disaggregates our net sales by product portfolio and by reportable segment. As a result of the JDE Peet’s Acquisition, we have revised our product portfolio for the periods presented, as follows:

• 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.

• Coffee and related products represents net sales of single serve, ground, instant, and whole bean coffee, as well as related products, including tea and cocoa, 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.

(in millions)			U.S. Refreshment Beverages						U.S. Coffee						KDP International						JDE Peet's**(1)**						Total
Second Quarter of 2026
LRB			$	2,867					$	24					$	471					$	—					$	3,362
Coffee and related products			—						764						169						2,588						3,521
Appliances			—						130						14						4						148
Other			58						—						10						210						278
Net sales			$	2,925					$	918					$	664					$	2,802					$	7,309
Second Quarter of 2025
LRB			$	2,589					$	15					$	374					$	—					$	2,978
Coffee and related products			—						805						158						—						963
Appliances			—						122						12						—						134
Other			71						6						11						—						88
Net sales			$	2,660					$	948					$	555					$	—					$	4,163
First Six Months of 2026
LRB			$	5,382					$	42					$	804					$	—					$	6,228
Coffee and related products			—						1,497						336						2,588						4,421
Appliances			—						236						24						4						264
Other			142						—						20						210						372
Net sales			$	5,524					$	1,775					$	1,184					$	2,802					$	11,285
First Six Months of 2025
LRB			$	4,852					$	28					$	651					$	—					$	5,531
Coffee and related products			—						1,547						297						—						1,844
Appliances			—						238						20						—						258
Other			131						12						22						—						165
Net sales			$	4,983					$	1,825					$	990					$	—					$	7,798

(1)The JDE Peet's segment was acquired on April 1, 2026. As such, amounts presented above only include activity subsequent to the date of acquisition. For selected pro forma information, refer to Note 2.

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:

			Second Quarter												First Six Months
(in millions)			2026						2025						2026						2025
Total stock-based compensation expense(1)			$	177					$	23					$	207					$	45
Income tax benefit			(6)						(3)						(11)						(8)
Stock-based compensation expense, net of tax			$	171					$	20					$	196					$	37

(1)For the second quarter and first six months of 2026, stock-based compensation expense includes $134 million related to the portion of the fair value of JDE Peet's stock-based compensation awards which were accelerated and which does not relate to pre-combination service.

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(1)			6,016,672						27.68
Vested and released			(3,162,034)						31.10												92
Forfeited			(1,028,810)						29.23
Outstanding as of June 30, 2026			14,946,665						$	28.55					1.9						$	489

(1)Includes certain legacy stock-based awards of JDE Peet’s which were converted into KDP awards as a result of the JDE Peet’s Acquisition. Refer to Note 2 for additional information.

As of June 30, 2026, there was $252 million of unrecognized compensation cost related to unvested RSUs that is expected to be recognized over a weighted average period of 2.8 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			(107,178)						29.74
Balance as of June 30, 2026			860,096						$	29.37					2.2						$	28

As of June 30, 2026, there was $16 million of unrecognized compensation cost related to unvested PSUs that is expected to be recognized over a weighted average period of 2.3 years.

KEURIG DR PEPPER INC.

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(UNAUDITED, CONTINUED)

13. Equity Method Investments

The following table summarizes our equity method investments:

(in millions)			June 30, 2026						December 31, 2025
Nutrabolt			$	1,199					$	1,168
Chobani			387						359
Tractor			59						52
Athletic Brewing			53						53
Other			35						28
Total equity method investments			$	1,733					$	1,660

14. Income Taxes

Our effective tax rates were as follows:

			Second Quarter												First Six Months
			2026						2025						2026						2025
Effective tax rate			31.1		%				23.8		%				27.5		%				22.8		%

For the second quarter of 2026, the change in our effective tax rate was driven by a non-cash revaluation of state deferred tax liabilities as a result of the JDE Peet's Acquisition.

For the first six months of 2026, the change in our effective tax rate was driven by a non-cash revaluation of state deferred tax liabilities as a result of the JDE Peet's Acquisition, as well as 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 $216 million and $276 million in cash for income taxes, net of refunds received, during the first six months of 2026 and 2025, respectively.

KEURIG DR PEPPER INC.

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(UNAUDITED, CONTINUED)

15. Accumulated Other Comprehensive (Loss) Income

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

(in millions)			Foreign Currency Translation Adjustments						Pension and Post-Retirement Benefit Liabilities						Cash Flow Hedges						Total
Second Quarter of 2026
Beginning balance			$	(251)					$	(19)					$	154					$	(116)
Other comprehensive income (loss)			3						2						(5)						—
Amounts reclassified from AOCI			—						—						—						—
Total other comprehensive income (loss)			3						2						(5)						—
Balance as of June 30, 2026			$	(248)					$	(17)					$	149					$	(116)
Second Quarter of 2025
Beginning balance			$	(397)					$	(14)					$	136					$	(275)
Other comprehensive income (loss)			319						—						(25)						294
Amounts reclassified from AOCI			—						—						(9)						(9)
Total other comprehensive income (loss)			319						—						(34)						285
Balance as of June 30, 2025			$	(78)					$	(14)					$	102					$	10
For the first six months of 2026:
Beginning balance			$	(9)					$	(16)					$	127					$	102
Other comprehensive (loss) income			(239)						(1)						22						(218)
Amounts reclassified from AOCI			—						—						—						—
Total other comprehensive (loss) income			(239)						(1)						22						(218)
Balance as of June 30, 2026			$	(248)					$	(17)					$	149					$	(116)
For the first six months of 2025:
Beginning balance			$	(410)					$	(14)					$	148					$	(276)
Other comprehensive income (loss)			332						—						(32)						300
Amounts reclassified from AOCI			—						—						(14)						(14)
Total other comprehensive income (loss)			332						—						(46)						286
Balance as of June 30, 2025			$	(78)					$	(14)					$	102					$	10

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

			Income Statement Caption						Second Quarter												First Six Months
(in millions)						2026						2025						2026						2025
Cash Flow Hedges
Interest rate contracts			Interest expense, net						$	(6)					$	(4)					$	(9)					$	(7)
FX contracts			Cost of sales						6						(8)						9						(13)
Total									—						(12)						—						(20)
Income tax expense									—						3						—						6
Total, net of tax									$	—					$	(9)					$	—					$	(14)

KEURIG DR PEPPER INC.

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(UNAUDITED, CONTINUED)

16. Other Financial Information

SELECTED BALANCE SHEET INFORMATION

(in millions)			June 30, 2026						December 31, 2025
Raw materials			$	1,491					$	706
Work-in-process			246						8
Finished goods			2,120						1,019
Total inventories			$	3,857					$	1,733
Prepaid expenses			$	798					$	334
Other current assets			830						484
Total prepaid expenses and other current assets			$	1,628					$	818

Supplier Financing Arrangements

The following table summarizes the location of our outstanding obligations under supplier financing arrangements, which are confirmed as valid, within the unaudited Condensed Consolidated Balance Sheets:

(in millions)			June 30, 2026						December 31, 2025
Accounts payable			$	1,779					$	1,378
Structured payables(1)			320						—
Total outstanding obligations under supplier financing arrangements			$	2,099					$	1,378

(1)As a result of the JDE Peet’s Acquisition, we have certain commercial arrangements with suppliers that include explicitly stated interest rates, which are more representative of financing transactions and are therefore classified as structured payables. Some of these suppliers participate in supplier financing arrangements, which are reflected in this table. The remainder of structured payables relate to suppliers not participating in supplier financing arrangements, or amounts owed to a virtual credit card sponsor.

Mandatory Redemption Liability

The fair value of our mandatory redemption liability associated with GHOST was $898 million and $880 million as of June 30, 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

LITIGATION

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. Following the court’s denial of class certification in 2025 for the direct purchaser class described below, similar actions were filed in 2026 by additional individual direct purchasers (including Target Corp., Performance Food Group, Inc. and certain of its affiliates, and entities owning the claims of former retailers Great Atlantic & Pacific Tea Company, Shopko, and Bed Bath & Beyond, Inc.). 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 of the matters filed before 2026 and pending in the Multidistrict Antitrust Litigation is concluded, with those 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. The cases filed in 2026 will proceed on a separate procedural timeline.

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.

TARIFFS

In February 2026, the U.S. Supreme Court invalidated certain tariffs previously imposed under the International Emergency Economic Powers Act. We have identified potential eligible refunds for tariffs paid in prior periods. We have begun to file claims with U.S. Customs and Border Protection for the recovery of tariffs previously paid, plus applicable interest.

We account for these potential recoveries through the gain contingencies model, under which a gain is not recognized until it is realized or realizable. Because the administrative process for review, validation, and disbursement by the Department of Treasury involves inherent uncertainty regarding the final approved amount and timing, we have not recorded receivables for claims which were pending as of June 30, 2026.

KEURIG DR PEPPER INC.

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(UNAUDITED, CONTINUED)

18. Restructuring

RESTRUCTURING PROGRAMS

Integration of JDE Peet's

As part of the JDE Peet's Acquisition, we developed a program to integrate JDE Peet’s and to facilitate the planned separation of Global Coffee Co. This program includes one-time, non-recurring expenses such as system integration, severance, retention, professional services, and other matters. This restructuring program is expected to incur cumulative pre-tax restructuring charges in a range of approximately $325 million to $400 million through the first quarter of 2029.

Legacy JDE Peet's Transformation Activities and Corporate Actions

JDE Peet's has a transformational program known as Reignite the Amazing, which was announced in 2025 and was inherited as part of the JDE Peet's Acquisition. This brand-led strategy is designed to accelerate profitable growth and includes activities and corporate actions designed to integrate the U.S. capsules business, optimize the European operating model, and transition the Peet's U.S. commercial distribution model, among others. From time to time, this program includes certain restructuring activities, such as the closure of certain facilities as part of optimization efforts.

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.

This 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:

			Second Quarter												First Six Months
(in millions)			2026						2025						2026						2025
Integration of JDE Peet's(1)			$	140					$	—					$	140					$	—
Legacy JDE Peet's Transformation Activities and Corporate Actions(1)			19						—						19						—
Network Optimization			7						10						30						12

(1)Amounts represent expenses incurred subsequent to the JDE Peet's Acquisition.

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
Charges to expense and other adjustments			28
Restructuring liabilities assumed in the JDE Peet's Acquisition			74
Cash payments			(26)
Balance as of June 30, 2026			$	84

KEURIG DR PEPPER INC.

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(UNAUDITED, CONTINUED)

19. Transactions with Variable Interest Entities

TRANSACTIONS WITH VIES

We have a number of leasing arrangements and one licensing arrangement with special purpose entities for which we are not the primary beneficiary, as we have limited power based on the contractual agreements to direct the activities that most significantly impact the VIEs' performance.

Leasing Arrangements

As of June 30, 2026, we have entered into seventeen lease transactions with VIEs. Each lease has an RVG based on a percentage of VIEs' purchase price; however, we concluded it was not probable that we will owe an amount at the end of each individual lease term, as the fair values of the properties are not expected to fall below the RVGs at the end of each individual lease term. As such, we recorded each lease obligation excluding the associated RVG. The aggregate maximum undiscounted RVG associated with the leasing arrangements was $733 million and $653 million as of June 30, 2026 and December 31, 2025, respectively. This aggregate maximum value assumes that the fair value of each property at the end of either the original lease term or renewal term is equal to zero, which we have concluded is not probable.

The following table provides the carrying amounts of the right-of-use assets and lease obligations recorded in the unaudited Condensed Consolidated Balance Sheets associated with these leasing arrangements related to the VIEs:

(in millions)						June 30, 2026						December 31, 2025
Non-current assets						$	393					$	361
Current liabilities						30						26
Non-current liabilities						384						351

The leasing agreements included as of December 31, 2025 include nine manufacturing sites, five warehouse and distribution centers, one multipurpose property, and our Frisco, Texas headquarters. The leasing agreements included as of June 30, 2026 also included one additional warehouse and distribution center.