Segments

6 Months Ended

Jun. 30, 2022

Segment Reporting [Abstract]

Segments

Segments

The Company's reportable segments consist of the following:

•The Coffee Systems segment reflects sales in the U.S. and Canada of the manufacture and distribution of finished goods relating to the Company's single-serve brewers, K-Cup pods and other coffee products.

•The Packaged Beverages segment reflects sales in the U.S. and Canada from the manufacture and distribution of finished beverages and other products, including sales of the Company's own brands and third-party brands, through both the DSD and WD systems. DSD and WD have both been identified as operating segments that the Company aggregated into Packaged Beverages due to similar economic characteristics and similarities in the nature of finished goods sales and route-to-markets.

•The Beverage Concentrates segment reflects sales of the Company's branded concentrates and syrup to third-party bottlers primarily in the U.S. and Canada. Most of the brands in this segment are carbonated soft drink brands. Our FFS operating segment is aggregated with our Branded Concentrates operating segment into our Beverage Concentrates reportable segment due to similar economic characteristics and similarities in the nature of the product sold.

•The Latin America Beverages segment reflects sales primarily in Mexico and the Caribbean from the manufacture and distribution of concentrates, syrup and finished beverages.

Segment results are based on management reports. Net sales and income from operations are the significant financial measures used to assess the operating performance of the Company's operating segments. Intersegment sales are recorded at cost and are eliminated in the unaudited Condensed Consolidated Statements of Income. “Unallocated corporate costs” are excluded from the Company's measurement of segment performance and include unrealized commodity derivative gains and losses, and certain general corporate expenses.

Effective January 1, 2022, the Company updated its presentation of certain of KDP's corporate costs, primarily related to IT, to be aligned among the Company's segments and to more consistently reflect controllable costs at the segment level. The prior period segment disclosures reflect the revised presentation.

Information about the Company's operations by reportable segment is as follows:

	Second Quarter				First Six Months
(in millions)	2022		2021		2022		2021
Segment Results – Net sales
Coffee Systems	$	1,195	$	1,101	$	2,288	$	2,243
Packaged Beverages	1,689		1,498		3,169		2,805
Beverage Concentrates	460		375		819		703
Latin America Beverages	210		166		356		291
Net sales	$	3,554	$	3,140	$	6,632	$	6,042
Segment Results – Income from operations
Coffee Systems	$	315	$	355	$	583	$	723
Packaged Beverages	232		261		718		440
Beverage Concentrates	324		255		568		493
Latin America Beverages	50		36		75		58
Unallocated corporate costs	(349)		(173)		(406)		(340)
Income from operations	$	572	$	734	$	1,538	$	1,374