Other Financial Information

6 Months Ended

Jun. 30, 2021

Organization, Consolidation and Presentation of Financial Statements [Abstract]

Other Financial Information

Other Financial Information

CASH AND CASH EQUIVALENTS

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

(in millions)	June 30, 2021		December 31, 2020
Cash and cash equivalents	$	167	$	240
Restricted cash and restricted cash equivalents(1)	3		15
Total cash, cash equivalents, restricted cash and restricted cash equivalents shown in the unaudited Condensed Consolidated Statement of Cash Flows	$	170	$	255

(1)Restricted cash and cash equivalents as of June 30, 2021 primarily represent amounts held in escrow in connection with the acquisitions of Core Nutrition LLC and Big Red Group Holdings, LLC, which have a corresponding holdback liability recorded in other current liabilities, as shown below. The decrease during the first six months of 2021 was primarily driven by the release of $10 million from escrow in April 2021 related to the 2017 acquisition of Bai Brands LLC.

ALLOWANCE FOR EXPECTED CREDIT LOSSES

Activity in the allowance for expected credit losses account during the periods presented was as follows:

(in millions)	Allowance for Expected Credit Losses
Balance as of December 31, 2020	$	21
Provision (reversal) for allowance for expected credit losses	(13)
Write-offs and adjustments	1
Balance as of June 30, 2021	$	9

ACCOUNTS PAYABLE

KDP has an agreement with a third party administrator which allows participating suppliers to track payments from KDP, and if voluntarily elected by the supplier, to sell payment obligations from KDP to financial institutions. Suppliers can sell one or more of KDP's payment obligations at their sole discretion and the rights and obligations of KDP to its suppliers are not impacted. KDP has no economic interest in a supplier’s decision to enter into these agreements and no direct financial relationship with the financial institutions. KDP's obligations to its suppliers, including amounts due and scheduled payment terms, are not impacted. KDP has been informed by the third party administrator that as of June 30, 2021 and December 31, 2020, $2,901 million and $2,578 million, respectively, of KDP's outstanding payment obligations were voluntarily elected by the supplier and sold to financial institutions.

SELECTED BALANCE SHEET INFORMATION

The tables below provide selected financial information from the unaudited Condensed Consolidated Balance Sheets:

	June 30,		December 31,
(in millions)	2021		2020
Inventories:
Raw materials	$	286	$	260
Work-in-progress	6		6
Finished goods	628		520
Total	920		786
Allowance for excess and obsolete inventories	(23)		(24)
Total Inventories	$	897	$	762
Prepaid expenses and other current assets:
Other receivables	$	75	$	85
Customer incentive programs	68		34
Derivative instruments	107		45
Prepaid marketing	18		15
Spare parts	63		55
Assets held for sale	2		2
Income tax receivable	12		11
Other	129		76
Total prepaid expenses and other current assets	$	474	$	323
Other non-current assets:
Customer incentive programs	$	63	$	70
Marketable securities - trading(1)	44		41
Operating lease right-of-use assets	648		645
Derivative instruments	38		12
Equity securities without readily determinable fair values	1		1
Other	132		125
Total other non-current assets	$	926	$	894

(1)Fair values of marketable securities are determined using quoted market prices from daily exchange traded markets, based on the closing price as of the balance sheet date, and are classified as Level 1. The fair value of marketable securities was $44 million and $41 million as of June 30, 2021 and December 31, 2020, respectively.

	June 30,		December 31,
(in millions)	2021		2020
Accrued expenses:
Customer rebates & incentives	$	398	$	382
Accrued compensation	194		215
Insurance reserve	45		35
Accrued interest	55		57
Accrued professional fees	18		21
Other accrued expenses	309		330
Total accrued expenses	$	1,019	$	1,040
Other current liabilities:
Dividends payable	$	265	$	212
Income taxes payable	13		39
Operating lease liability	81		72
Finance lease liability	52		44
Derivative instruments	33		25
Holdback liabilities	2		15
Other	9		9
Total other current liabilities	$	455	$	416
Other non-current liabilities:
Pension and post-retirement liability	$	39	$	38
Insurance reserves	75		72
Operating lease liability	577		580
Finance lease liability	552		298
Derivative instruments	129		18
Deferred compensation liability	44		41
Other	75		72
Total other non-current liabilities	$	1,491	$	1,119