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Item 1. Financial Statements

2026-08-10 compared with 2026-04-23 · 550 added, 240 removed, 605 unchanged (57% of the section changed)

2 unchanged sentences

CONDENSED CONSOLIDATED STATEMENTS OF INCOME

First Quarter

Second Quarter First Six Months

(in millions, except per share data) 2026 2025 2026 2025

3 unchanged sentences

Selling, general, and administrative expenses 2,397 1,356 3,739 2,548

Other operating income, net — ( 8 )

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 expense (income), net 118 ( 7 )

Other (income) expense, net ( 13 ) — 105 ( 7 )

Income before provision for income taxes 305 718 662 1,378

1 unchanged sentence

Net income 210 547 480 1,064

Net income attributable to non-controlling interests 68 — 68 —

Net income attributable to KDP $ 142 $ 547 $ 412 $ 1,064

Earnings per common share:

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CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME

First Quarter

Second Quarter First Six Months

(in millions) 2026 2025 2026 2025

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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

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.

1 unchanged sentence

CONDENSED CONSOLIDATED BALANCE SHEETS

(in millions, except share and per share data) March 31, 2026 December 31, 2025

(in millions, except share and per share data) June 30, 2026 December 31, 2025

Current assets:

24 unchanged sentences

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 March 31, 2026 and December 31, 2025, respectively.

Liquidation preference of $ 4,500 million as of March 31, 2026

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

Stockholders' equity:

Preferred stock, $ 0.01 par value, 10,500,000 shares authorized, no shares issued as of March 31, 2026 and December 31, 2025

Common stock, $ 0.01 par value, 2,000,000,000 shares authorized, 1,360,434,759 and 1,358,663,795 shares issued and outstanding as of March 31, 2026 and December 31, 2025, respectively

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

Additional paid-in capital 19,808 19,778

2 unchanged sentences

Total stockholders' equity 25,032 25,516

Non-controlling interest 3,921 —

Non-controlling interests 4,196 —

Total equity 29,228 25,516

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CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

First Quarter

First Six Months

(in millions) 2026 2025

4 unchanged sentences

Amortization of intangibles 161 68

Amortization of inventory step-up 314 15

Other amortization expense 82 63

21 unchanged sentences

Investing activities:

Acquisitions of businesses, net of cash acquired ( 16,615 ) ( 111 )

Purchases of property, plant, and equipment ( 297 ) ( 226 )

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(UNAUDITED, CONTINUED)

First Quarter

First Six Months

(in millions) 2026 2025

Financing activities:

Proceeds from issuance of Maple Notes $ 6,003 $ —

Net (repayment) issuance of commercial paper ( 21 ) 1,356

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

4 unchanged sentences

Repayments of structured payables ( 343 ) ( 26 )

Cash dividends paid ( 312 ) ( 312 )

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 )

3 unchanged sentences

Net cash provided by (used in) financing activities

16,546 ( 409 )

Cash, cash equivalents, restricted cash, and restricted cash equivalents:

4 unchanged sentences

Supplemental cash flow disclosures:

Accrued transaction costs for JV Investment and Convertible Preferred Investment $ 143 $ —

Accrued consideration to untendered shareholders in the JDE Peet's Acquisition $ 402 $ —

Capital expenditures included in accounts payable and accrued expenses 207 155

Dividends declared but not yet paid 312 313

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

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Common Stock Issued Additional

Paid-In Capital Retained Earnings Accumulated Other Comprehensive Income (Loss) Total Stockholders' Equity Non-Controlling Interest Total Equity

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

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Other comprehensive loss — — — — ( 218 ) ( 218 ) — ( 218 )

Dividends declared, $ 0.23 per share

Dividends declared to common shareholders, $ 0.23 per share

— — — ( 312 ) — ( 312 ) — ( 312 )

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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 Loss Total Stockholders' Equity

Paid-In Capital Retained Earnings Accumulated Other Comprehensive Income (Loss) Total Stockholders' Equity

(in millions, except per share data) Shares Amount

9 unchanged sentences

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.

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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.

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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 "first quarter" indicate the quarterly periods ended March 31, 2026 and 2025.

References to the "second quarter" indicate the quarterly periods ended June 30, 2026 and 2025.

USE OF ESTIMATES

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These reclassifications had no impact on total cash, cash equivalents, restricted cash, and restricted cash equivalents.

JDE Peet's Acquisition and Related Transactions

KEURIG DR PEPPER INC.

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(UNAUDITED, CONTINUED)

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.

We substantially completed the tender offer in connection with the JDE Peet's Acquisition on April 1, 2026.

Refer to Note 19 for additional information.

During the first quarter of 2026, we completed a series of transactions in order to obtain funding for the consideration of the JDE Peet's Acquisition:

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

Liability to untendered shareholders (1)

Consideration related to stock-based compensation awards (2)

Settlement of preexisting relationships (3)

Total consideration

(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.

Each transaction is described further below.

Refer to Note 5 for additional information.

KEURIG DR PEPPER INC.

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(UNAUDITED, CONTINUED)

BORROWING ARRANGEMENTS

In connection with the JDE Peet's Acquisition, we entered into the Bridge Credit Agreement, the Delayed Draw Term Loan Agreement, and the Maple Notes.

Refer to Note 3 for additional information on these borrowing arrangements.

PREFERRED INVESTMENT

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.

Refer to Note 4 for additional information.

JV INVESTMENT

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, through the JV Investor Partner, $ 4 billion in cash in exchange for a 49 % interest in the Pod Manufacturing JV.

Refer to Note 5 for additional information.

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)

Prepaid expenses and other current assets 593

Property, plant, and equipment (2)

Intangible assets (3)

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)

Other current liabilities ( 435 )

Long-term obligations, non-current portion (4)

Deferred tax liabilities (5)

Other non-current liabilities ( 540 )

Net assets acquired 8,480

Goodwill 9,660

non-controlling interests (6)

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)

Customer relationships (2)

Acquired technology (3)

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.

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)

Long-term Obligations and Borrowing Arrangements

The following table summarizes our long-term obligations:

(in millions) March 31, 2026 December 31, 2025

Notes and Maple Notes

$ 19,900 $ 13,931

Delayed draw term loan

(in millions) June 30, 2026 December 31, 2025

Notes $ 24,817 $ 13,931

current portion of long-term obligations ( 3,231 ) ( 895 )

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

(in millions) March 31, 2026 December 31, 2025

(in millions) June 30, 2026 December 31, 2025

Commercial paper notes $ 1,978 $ 2,210

1 unchanged sentence

Current portion of long-term obligations:

Notes 3,231 895

Short-term borrowings and current portion of long-term obligations $ 8,394 $ 3,105

3 unchanged sentences

SENIOR UNSECURED NOTES

(in millions, except %) Maturity Date Rate March 31, 2026 December 31, 2025

(in millions, except %) Maturity Date Rate June 30, 2026 December 31, 2025

2026 Notes September 15, 2026 2.550 % $ 400 $ 400

2026-B Notes November 15, 2026 Floating (1)

2027 JDE Peet's Notes (2)

January 15, 2027 1.375 % 750 —

2027-B Notes March 15, 2027 Floating (1)

1 unchanged sentence

2027 Notes June 15, 2027 3.430 % 500 500

2028 Euro Notes (€ 600 million) (3)

March 26, 2028 3.495 % 690 —

2028 Notes May 15, 2028 4.350 % 500 500

2028 Merger Notes May 25, 2028 4.597 % 1,112 1,112

2028 DPS Merger Notes May 25, 2028 4.597 % 1,112 1,112

2029-B Notes March 15, 2029 5.050 % 750 750

2029-C Notes (3)

2029 Maple Notes (3)

March 26, 2029 4.750 % 550 —

2029 Notes April 15, 2029 3.950 % 1,000 1,000

2030 Euro Notes (€ 800 million) (3)

March 26, 2030 3.881 % 921 —

2030 Notes May 1, 2030 3.200 % 750 750

2 unchanged sentences

2031-B Notes March 15, 2031 5.200 % 500 500

2031-C Notes (3)

March 26, 2031 5.050 % 600 —

2032 Euro Notes (€ 800 million) (3)

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 Euro Notes (€ 800 million) (3)

March 26, 2035 4.728 % 921 —

2035 Notes May 15, 2035 5.150 % 500 500

2036 Notes (3)

2036 Maple Notes (3)

March 26, 2036 5.700 % 700 —

2038 Merger Notes May 25, 2038 4.985 % 211 211

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 Merger Notes May 25, 2048 5.085 % 391 391

2048 DPS Merger Notes May 25, 2048 5.085 % 391 391

2050 Notes May 1, 2050 3.800 % 750 750

1 unchanged sentence

2052 Notes April 15, 2052 4.500 % 1,150 1,150

2056 Notes (3)

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

2027 Euro JDE Peet's Notes (€ 600 million) (2)

December 11, 2027 Floating (1)

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 —

Principal amount 25,222 14,064

2 unchanged sentences

Carrying amount $ 24,817 $ 13,931

(1) The carrying amount includes unamortized discounts, debt issuance costs, and fair value adjustments related to the DPS Merger.

(2) Our 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.

(3) The 2028 Euro Notes, 2030 Euro Notes, 2032 Euro Notes, 2035 Euro Notes, 2029-C Notes, 2031-C Notes, 2036 Notes, and 2056 Notes (together, the Maple Notes ) were issued by Maple and are guaranteed by Keurig Dr Pepper Inc.

and certain of our subsidiaries that guarantee our other senior indebtedness, which guarantees will terminate upon the Separation.

On March 26, 2026, Maple completed the issuance of the 2029-C Notes, 2031-C Notes, 2036 Notes, and 2056 Notes, with an aggregate principal amount of $ 2.55 billion.

(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 Notes, 2030 Euro Notes, 2032 Euro Notes and 2035 Euro 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 fund the JDE Peet's Acquisition and to pay related fees and expenses in connection with the JDE Peet's Acquisition and related transactions.

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.

14 unchanged sentences

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, and € 736 million remains available and undrawn as of March 31, 2026 .

The interest rate in effect as of March 31, 2026 was 3.385 %.

As of March 31, 2026 , we were in compliance with our minimum interest coverage ratio with respect to the Delayed Draw Term Loan Agreement.

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

5 unchanged sentences

Amounts Outstanding

(in millions) Maturity Date Capacity March 31, 2026 December 31, 2025

(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 March 31, 2026 .

As of March 31, 2026 , we were in compliance with our minimum interest coverage ratio with respect to the 2025 Revolving Credit Agreement .

(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

First Quarter

Second Quarter First Six Months

(in millions, except %) 2026 2025 2026 2025

4 unchanged sentences

(UNAUDITED, CONTINUED)

Letter of Credit Facility

In addition to the portion of the 2025 Revolving Credit Agreement reserved for issuance of letters of credit, we have an incremental letter of credit facility.

Under this facility, $ 150 million is available for the issuance of letters of credit, $ 63 million of which was utilized as of March 31, 2026 and $ 87 million of which remains available for use.

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 and Maple 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 the Notes and Maple Notes and related unamortized costs to be incurred at such date.

The fair value of our Notes and Maple Notes was $ 18,894 million and $ 13,196 million as of March 31, 2026 and December 31, 2025, respectively.

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 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 dividends 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.

For the first quarter of 2026, there were no dividends declared or paid to the holders of our Convertible Preferred Stock due to the timing of the issuance.

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.

KEURIG DR PEPPER INC.

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(UNAUDITED, CONTINUED)

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 March 31, 2026 .

The following table summarizes the activity for the outstanding Convertible Preferred Stock for the first quarter of 2026:

Convertible Preferred Stock

(in millions) Shares Carrying Value

Balance as of December 31, 2025 — $ —

Issuance of Convertible Preferred Stock, net of issuance costs and tax effects

Balance as of March 31, 2026

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.

Pod Manufacturing JV

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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.

KEURIG DR PEPPER INC.

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(UNAUDITED, CONTINUED)

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

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 interest on our unaudited Condensed Consolidated Balance Sheets and a subsequent $ 101 million decrease in non-controlling interest related to transaction costs incurred.

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.

Any net earnings attributable to the JV Investors are presented separately in the unaudited Condensed Consolidated Statements of Income.

For the first quarter of 2026, there were no net earnings attributable to non-controlling interest due to the timing of the completion of the JV Investment.

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)

Convertible Preferred Stock

On March 30, 2026, we completed the Preferred Investment.

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.

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)

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

Net income allocated to Preferred Investors (1)

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.

Goodwill and Intangible Assets

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Refreshment Beverages U.S.

Coffee International Total

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 March 31, 2026

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:

March 31, 2026 December 31, 2025

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:

Acquired technology $ 1,146 $ ( 712 ) $ 434 $ 1,146 $ ( 694 ) $ 452

$ 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 ) —

Brands 76 ( 43 ) 33 76 ( 40 ) 36

Distribution rights 162 ( 41 ) 121 162 ( 35 ) 127

Other 25 ( 3 ) 22 25 ( 3 ) 22

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Intangible assets with indefinite lives:

Brands $ 19,956 $ 19,993

$ 29,632 $ 19,993

Trade names 2,478 2,478

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Total intangible assets, net $ 38,113 $ 23,725

KEURIG DR PEPPER INC.

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(UNAUDITED, CONTINUED)

(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:

First Quarter

Second Quarter First Six Months

(in millions) 2026 2025 2026 2025

Amortization expense $ 124 $ 34 $ 161 $ 68

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, FX forward contracts, commodity forward, future, swap, and option contracts, and supplier pricing agreements.

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.

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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.

If a cash flow 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.

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.

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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 RATES

INTEREST RATE RISK

Economic Hedges

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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 March 31, 2026 , economic interest rate derivative instruments have maturities ranging from March 2027 to November 2046.

As of June 30, 2026, economic interest rate derivative instruments have maturities ranging from September 2031 to November 2046.

Cash Flow Hedges

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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 March 31, 2026 .

KEURIG DR PEPPER INC.

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(UNAUDITED, CONTINUED)

FOREIGN EXCHANGE

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.

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Economic Hedges

We hold FX forward contracts to economically manage the balance sheet exposures resulting from changes in the FX rates described above.

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.

Additionally, in order to complete the JDE Peet's Acquisition on April 1, 2026, we have significant Euro-denominated cash outflows, as described in Note 2.

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.

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 caption of the unaudited Condensed Consolidated Statements of Income as the associated risk.

As of March 31, 2026 , these FX contracts have maturities ranging from April 2026 to December 2026.

As of June 30, 2026, all of these contracts were settled.

Cash Flow Hedges

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The intent of these FX contracts is to provide predictability in our overall cost structure.

As of March 31, 2026 , these FX contracts have maturities ranging from April 2026 to June 2027.

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

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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 March 31, 2026 , these commodity contracts have maturities ranging from April 2026 to January 2028.

As of June 30, 2026, these commodity contracts have maturities ranging from July 2026 to January 2028.

KEURIG DR PEPPER INC.

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The following table presents the notional amounts of our outstanding derivative instruments by type:

(in millions) March 31, 2026 December 31, 2025

(in millions) June 30, 2026 December 31, 2025

Interest rate contracts

Pay-variable interest rate swaps, not designated as hedging instruments $ 2,014 $ —

Pay-fixed interest rate swaps, not designated as hedging instruments 600 —

Forward starting swaps, not designated as hedging instruments — 2,300

2 unchanged sentences

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) Includes € 5 billion as of March 31, 2026 and € 10 billion as of December 31, 2025 of FX forward contracts entered into in connection with the JDE Peet's Acquisition.

(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 commodity contracts, interest rate contracts, and FX forward 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 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 forward rates, for all substantial terms of our contracts and credit risk of the counterparties.

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

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All such instruments are considered Level 2 within the fair value hierarchy.

(in millions) Balance Sheet Location March 31, 2026 December 31, 2025

(in millions) Balance Sheet Location June 30, 2026 December 31, 2025

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

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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

KEURIG DR PEPPER INC.

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(UNAUDITED, CONTINUED)

Designated as Hedging Instruments

1 unchanged sentence

All such instruments are considered Level 2 within the fair value hierarchy.

(in millions) Balance Sheet Location March 31, 2026 December 31, 2025

(in millions) Balance Sheet Location June 30, 2026 December 31, 2025

FX contracts Prepaid expenses and other current assets $ 11 $ 2

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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

2 unchanged sentences

Amounts include both realized and unrealized gains and losses.

Income Statement Location First Quarter

Income Statement Location Second Quarter First Six Months

(in millions) 2026 2025 2026 2025

1 unchanged sentence

FX contracts Cost of sales ( 1 ) ( 2 ) — ( 3 )

FX contracts Other expense (income), net 115 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 )

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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 First Quarter

Income Statement Location Second Quarter First Six Months

(in millions) 2026 2025 2026 2025

1 unchanged sentence

FX contracts Cost of sales 6 ( 8 ) 9 ( 13 )

We expect to reclassify approximately $ 22 million of pre-tax net gains and $ 6 million of pre-tax net losses from AOCI into net income during the next twelve months related to interest rate contracts and FX contracts, respectively.

KEURIG DR PEPPER INC.

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(UNAUDITED, CONTINUED)

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.

The following table presents the components of lease cost:

First Quarter

Second Quarter First Six Months

(in millions) 2026 2025 2026 2025

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Variable lease cost (1)

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 March 31, 2026 December 31, 2025

Operating lease right-of-use assets

Other non-current assets $ 837 $ 845

(in millions) Balance Sheet Location June 30, 2026 December 31, 2025

Operating lease right-of-use assets Other non-current assets $ 1,107 $ 845

Finance lease right-of-use assets (1)

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Finance lease liability Other non-current liabilities 835 745

(1) Amounts are presented net of accumulated amortization of $ 453 million and $ 426 million as of March 31, 2026 and December 31, 2025, respectively.

First Quarter

(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

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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:

March 31, 2026 December 31, 2025

June 30, 2026 December 31, 2025

Weighted average discount rate

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Schedule of Future Minimum Lease Payments

Future minimum lease payments for non-cancellable leases that have commenced and are reflected in the unaudited Condensed Consolidated Balance Sheets as of March 31, 2026 were as follows:

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

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Significant Leases that Have Not Yet Commenced

As of March 31, 2026 , we have entered into leases that have not yet commenced with estimated aggregated future lease payments of approximately $ 156 million.

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.

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.

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(UNAUDITED, CONTINUED)

Our three operating and reportable segments consist of the following:

Our four operating and reportable segments are described below.

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.

Refreshment Beverages segment reflects sales in the U.S.

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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 International segment reflects sales in international markets, including the following:

• 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.

Segment results are based on management reports provided to the CODM, which is Tim Cofer, our CEO.

• 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.

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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 (income) expense" includes Other operating 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".

"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.

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Refreshment Beverages U.S.

Coffee International Total

First Quarter of 2026

Coffee KDP International JDE Peet's (1)

Second Quarter of 2026

Net sales $ 2,925 $ 918 $ 664 $ 2,802 $ 7,309

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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

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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)

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 Quarter of 2025

First Six Months of 2025

Net sales $ 4,983 $ 1,825 $ 990 $ — $ 7,798

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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.

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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 International Total

First Quarter of 2026

Coffee KDP International JDE Peet's (1)

Second Quarter of 2026

$ 2,867 $ 24 $ 471 $ — $ 3,362

K-Cup pods — 701 139 840

Coffee and related products — 764 169 2,588 3,521

Appliances — 130 14 4 148

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Net sales $ 2,925 $ 918 $ 664 $ 2,802 $ 7,309

First Quarter of 2025

Second Quarter of 2025

$ 2,589 $ 15 $ 374 $ — $ 2,978

K-Cup pods — 717 116 833

Coffee and related products — 805 158 — 963

Appliances — 122 12 — 134

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Net sales $ 2,660 $ 948 $ 555 $ — $ 4,163

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.

K-Cup pods represents net sales 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.

Earnings Per Share

First Quarter

(in millions, except per share data) 2026 2025

Net income $ 270 $ 517

Weighted average common shares outstanding 1,359.2 1,357.1

Dilutive effect of stock-based awards 4.5 5.1

Weighted average common shares outstanding and common stock equivalents 1,363.7 1,362.2

Basic EPS $ 0.20 $ 0.38

Diluted EPS 0.20 0.38

Anti-dilutive shares excluded from the diluted weighted average shares outstanding calculation 4.7 0.8

First Six Months of 2026

$ 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

$ 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.

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The components of stock-based compensation expense are presented below:

First Quarter

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:

Weighted Average Grant Date Fair Value Weighted Average Remaining Contractual Term (Years) Aggregate Intrinsic Value

(in millions)

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 4,030,382 28.41

6,016,672 27.68

Vested and released ( 3,162,034 ) 31.10 92

Forfeited ( 1,028,810 ) 29.23

Outstanding as of March 31, 2026

Outstanding as of June 30, 2026

14,946,665 $ 28.55 1.9 $ 489

As of March 31, 2026 , there was $ 257 million of unrecognized compensation cost related to unvested RSUs that is expected to be recognized over a weighted average period of 3 years.

(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

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Forfeited or expired ( 107,178 ) 29.74

Balance as of March 31, 2026

Balance as of June 30, 2026

860,096 $ 29.37 2.2 $ 28

As of March 31, 2026 , there was $ 19 million of unrecognized compensation cost related to unvested PSUs that is expected to be recognized over a weighted average period of 2.5 years.

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)

Equity Method Investments

The following table summarizes our equity method investments:

(in millions) March 31, 2026 December 31, 2025

(in millions) June 30, 2026 December 31, 2025

Nutrabolt $ 1,199 $ 1,168

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Total equity method investments $ 1,733 $ 1,660

KEURIG DR PEPPER INC.

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(UNAUDITED, CONTINUED)

Our effective tax rates were as follows:

First Quarter

Second Quarter First Six Months

2026 2025 2026 2025

Effective tax rate 31.1 % 23.8 % 27.5 % 22.8 %

For the first quarter of 2026, the change in our effective tax rate was driven by discrete tax impacts associated with the completion of the JV Investment and the creation of the Pod Manufacturing JV.

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 $ 47 million and $ 60 million in cash for income taxes, net of refunds received, during the first quarter of 2026 and 2025, respectively.

Accumulated Other Comprehensive Loss

The following table provides a summary of changes in AOCI, net of 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)

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

For the first quarter of 2026:

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 )

Balance as of March 31, 2026 $ ( 251 ) $ ( 19 ) $ 154 $ ( 116 )

For the first quarter of 2025:

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 )

2 unchanged sentences

Total other comprehensive income (loss) 332 — ( 46 ) 286

Balance as of March 31, 2025 $ ( 397 ) $ ( 14 ) $ 136 $ ( 275 )

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

Income Statement Caption First Quarter

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

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Other Financial Information

CASH, CASH EQUIVALENTS, RESTRICTED CASH, AND RESTRICTED 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 is classified as Level 1.

The following table provides a reconciliation of cash, cash equivalents, restricted cash, and restricted cash equivalents reported within 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) March 31, 2026 December 31, 2025

Cash and cash equivalents $ 898 $ 1,026

Restricted cash and restricted cash equivalents (1)

Total cash, cash equivalents, restricted cash, and restricted cash equivalents $ 18,716 $ 1,044

(1) As of March 31, 2026 , Restricted cash and restricted cash equivalents includes approximately $ 17.8 billion of legally segregated cash to be utilized for the completion of the JDE Peet's Acquisition, which occurred on April 1, 2026.

SELECTED BALANCE SHEET INFORMATION

(in millions) March 31, 2026 December 31, 2025

(in millions) June 30, 2026 December 31, 2025

Raw materials $ 1,491 $ 706

2 unchanged sentences

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

Outstanding obligations under supplier financing arrangements, which are confirmed as valid and included in accounts payable as of March 31, 2026 and December 31, 2025, were $ 1,473 million and $ 1,378 million, respectively.

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)

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 m andatory redemption liability associated with GHOST was $ 899 million and $ 880 million as of March 31, 2026 and December 31, 2025 , respectively, and is included within Other non-current liabilities within the unaudited Condensed Consolidated Balance Sheets.

The fair value of our m andatory 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.

Commitments and Contingencies

15 unchanged sentences

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:

7 unchanged sentences

their petition was subsequently denied.

Discovery in all remaining matters pending in the Multidistrict Antitrust Litigation is concluded, with the plaintiffs (which no longer include the purported direct purchaser class) collectively claiming more than $ 1.5 billion of monetary damages.

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.

2 unchanged sentences

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.

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.

2 unchanged sentences

Restructuring

RESTRUCTURING PROGRAM

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

1 unchanged sentence

Our restructuring program includes the closure of certain facilities and other costs intended to optimize our manufacturing and distribution footprint throughout our operations.

The 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.

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:

First Quarter

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)

Network Optimization 7 10 30 12

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

RESTRUCTURING LIABILITIES

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Balance as of December 31, 2025 $ 8

Charges to expense and other adjustments 28

Restructuring liabilities assumed in the JDE Peet's Acquisition

Cash payments ( 26 )

Balance as of March 31, 2026 $ 5

Subsequent Event

COMPLETION OF JDE PEET'S ACQUISITION

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 of the outstanding issued and ordinary shares of JDE Peet's.

We acquired 96.22 % of the issued and outstanding ordinary shares of JDE Peet's on April 1, 2026.

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 % the issued and outstanding ordinary shares of JDE Peet's.

We intend to acquire all remaining outstanding shares.

The aggregate consideration for the tendered shares was approximately € 15.11 billion.

Due to the limited time since the date of the JDE Peet's Acquisition execution, it is impracticable for us to make certain business combination disclosures at this time as we are still gathering information necessary to provide those disclosures.

We are unable to present (i) the allocation of the preliminary purchase price to the fair value of assets acquired and liabilities assumed and (ii) supplemental pro forma financial information related to the JDE Peet's Acquisition.

We plan to provide this information in our quarterly report on Form 10-Q for the quarter ending June 30, 2026.

Balance as of June 30, 2026 $ 84

KEURIG DR PEPPER INC.

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(UNAUDITED, CONTINUED)

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.

Compared sentence by sentence after normalising whitespace, quotation marks, case and digits, so re-formatting and restated figures do not read as changed language. Wording changes appear as one removal and one addition. The current filing and the prior one are authoritative.

What changed 10-Q

Item 1. Financial Statements