v3.26.3
Segments
 9 Months Ended
Sep. 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
Third Quarter of 2026
Net sales$3,033 $1,018 $644 $2,649 $7,344 
Cost of sales1,272 531 322 1,694 
SG&A expenses890 159 164 671 
Other segment expense (income) 51 9 — (5)
Income from operations - reportable segments$820 $319 $158 $289 $1,586 
Unallocated corporate costs(253)
Income from operations1,333 
Interest expense, net474 
Gain on sale of equity method investment(400)
Other expense, net47 
Income before provision for income taxes$1,212 
Third Quarter of 2025
Net sales$2,735 $991 $580 $—$4,306 
Cost of sales1,120 586 287 —
SG&A expenses813 166 140 —
Other segment expense— 2 — —
Income from operations - reportable segments$802 $237 $153 $—$1,192 
Unallocated corporate costs(197)
Income from operations995 
Interest expense, net188 
Other income, net(45)
Income before provision for income taxes$852 
(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 Nine Months of 2026
Net sales$8,557 $2,793 $1,828 $5,451 $18,629 
Cost of sales3,563 1,634 954 3,778 
SG&A expenses2,545 476 479 1,456 
Other segment expense (income)51 55 — (10)
Income from operations - reportable segments$2,398 $628 $395 $227 $3,648 
Unallocated corporate costs(931)
Income from operations2,717 
Interest expense, net1,091 
Gain on sale of equity method investment(400)
Other expense, net152 
Income before provision for income taxes$1,874 
First Nine Months of 2025
Net sales$7,718 $2,816 $1,570 $—$12,104 
Cost of sales3,156 1,660 775 —
SG&A expenses2,361 480 411 —
Other segment (income) expense(1)4 (2)—
Income from operations - reportable segments$2,202 $672 $386 $—$3,260 
Unallocated corporate costs(566)
Income from operations2,694 
Interest expense, net516 
Other income, net(52)
Income before provision for income taxes$2,230
(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.