KDP · 8-K · 20260806PR000048

Income Tax Rate Changes

Keurig Dr Pepper Inc. · 2026-08-06 · Importance 51 · Surprise 64

The pro forma effective tax rate was 19.7% in the third quarter of 2025 and 11.9% in the fourth quarter of 2025. In the first quarter of 2026, the pro forma tax provision was a $74 million benefit and the effective tax rate was negative 36.1%, while the adjusted tax provision was $149 million at a 20.9% effective rate. Pro forma transaction accounting adjustments use an estimated blended statutory rate of approximately 25% for the relevant 2025 and 2026 quarterly periods. The tax adjustments include withholding taxes, valuation allowances on specific deferred tax assets, and tax effects from income allocated to a nontaxable entity related to the Pod Manufacturing JV.

Key facts

• The pro forma tax rate used for the three months ended March 31, 2026, December 31, 2025 and September 30, 2025 in recording income tax impact of pro forma transaction accounting adjustments is approximately 25% source
• Pro forma provision for income taxes for the last twelve months ended June 30, 2026: $285 source