v3.26.1
Segments
 6 Months Ended
Jun. 30, 2026
Segment Reporting [Abstract]  
Segments 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).
Information about our operations and significant expenses by reportable segment is as follows:
(in millions)U.S. Refreshment BeveragesU.S. CoffeeKDP International
JDE Peet's(1)
Total
Second Quarter of 2026
Net sales$2,925 $918 $664 $2,802 $7,309 
Cost of sales1,225 564 342 2,084 
SG&A expenses843 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 operations628 
Interest expense, net336 
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 sales1,099 551 260 —
SG&A expenses815 163 152 —
Other segment expense— 1 — —
Income from operations - reportable segments$746 $233 $143 $—$1,122 
Unallocated corporate costs(224)
Income from operations898 
Interest expense, net180 
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.
(in millions)U.S. Refreshment BeveragesU.S. CoffeeKDP 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 sales2,291 1,103 632 2,084 
SG&A expenses1,655 317 315 785 
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 operations1,384 
Interest expense, net617 
Other expense, net105 
Income before provision for income taxes$662 
First Six Months of 2025
Net sales$4,983 $1,825 $990 $—$7,798 
Cost of sales2,036 1,074 488 —
SG&A expenses1,548 314 271 —
Other segment (income) expense(1)2 (2)—
Income from operations - reportable segments$1,400 $435 $233 $—$2,068 
Unallocated corporate costs(369)
Income from operations1,699 
Interest expense, net328 
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.