Unaudited Condensed Combined Financial Information

Exhibit 99.1
Unaudited Condensed Combined Financial Information
On January 29, 2018, Xx Xxxxxx Snapple Group, Inc. ("DPS") entered into an Agreement and Plan of Merger (the "Merger Agreement") by and among DPS, Maple Parent Holdings Corp. (“Maple”) and Salt Merger Sub, Inc. (“Merger Sub”), whereby Merger Sub would be merged with and into Maple, with Maple surviving the merger as a wholly-owned subsidiary of DPS (the “Transaction”). The Transaction was consummated on July 9, 2018 (the "Merger Date"), at which time DPS changed its name to "Keurig Xx Xxxxxx Inc.".
Immediately prior to the consummation of the Transaction (the “Effective Time”), each share of common stock of Maple issued and outstanding was converted into the right to receive a number of fully paid and nonassessable shares of common stock of Merger Sub determined pursuant to an exchange ratio set forth in the Merger Agreement (the “Acquisition Shares”). As a result of the Transaction, the stockholders of Maple as of immediately prior to the Effective Time owned approximately 87% of DPS common stock on a fully diluted basis following the closing, and the stockholders of DPS as of immediately prior to the Effective Time owned approximately 13% on a fully diluted basis. DPS declared a special cash dividend equal to $103.75 per share, subject to any withholding of taxes required by law, payable to holders of its common stock as of July 6, 2018.
The following unaudited pro forma condensed combined financial information (the “financial information”) is presented to illustrate the estimated effects of the Transaction. The unaudited pro forma condensed combined statements of income by quarter for 2017 and for the first two quarters of 2018 are based on the historical financial statements of DPS and Maple after giving effect to the Transaction as well as the assumptions, reclassifications and adjustments described in the accompanying notes to this financial information.The unaudited pro forma condensed combined statements of income are presented as if the Transaction had been consummated on December 31, 2016, and combines the historical results of DPS and Maple. Refer to the Summary of Reclassifications and Summary of Pro Forma Adjustments below for details of the reclassifications and adjustments applied to the historical financial statements of DPS and of Maple.
The financial information was prepared using the acquisition method of accounting, which requires, among other things, that assets acquired and liabilities assumed in a business combination be recognized at their fair values as of the completion of the acquisition. We utilized estimated fair values at the Merger Date for the preliminary allocation of consideration to the net tangible and intangible assets acquired and liabilities assumed. During the measurement period, we will continue to obtain information to assist in determining the fair value of net tangible and intangible assets acquired and liabilities assumed, which may differ materially from these preliminary estimates.The historical consolidated financial statements have been adjusted in the accompanying financial information to give effect to unaudited pro forma events that are (1) directly attributable to the transaction, (2) factually supportable, and (3) are expected to have a continuing impact on the results of operations of the combined company.
The financial information has been prepared based upon currently available information and assumptions deemed appropriate by the Company's management. This financial information is not necessarily indicative of what our results of operations actually would have been had the Transaction been completed as of December 31, 2016. In addition, the financial information is not indicative of future results or current financial conditions and does not reflect any anticipated synergies, operating efficiencies, cost savings or any integration costs that may result from the Transaction. The financial information should be read in conjunction with historical financial statements and accompanying notes filed with the Securities and Exchange Commission. 


1
Keurig Xx Xxxxxx Inc.
Summary of Pro Forma Condensed Combined Statements of Income
(Unaudited)

For the Three Months Ended
For the Year Ended 
For the Three Months Ended
For the Six Months Ended
(in millions, except per share data)
March 31, 2017June 24, 2017September 30, 2017December 31, 2017December 31, 2017March 31, 2018June 30, 2018June 30, 2018
Net sales
$2,466 $2,733 $2,776 $2,800 $10,775 $2,529 $2,822 $5,351 
Cost of sales
1,085 1,218 1,244 1,317 4,864 1,147 1,245 2,392 
Gross profit
1,381 1,515 1,532 1,483 5,911 1,382 1,577 2,959 
Selling, general and administrative expenses
912 981 966 922 3,781 892 1,009 1,901 
Other operating (income) expense, net (27)(3)(1)(21)(52)6 (12)(6)
Income from operations
496 537 567 582 2,182 484 580 1,064 
Interest expense
96 205 158 154 613 145 170 315 
Loss on early extinguishment of debt
52 49 15 5 121 2 — 2 
Other (income) loss, net
00 (0)00 0 00 00 (21)(4)
Income before provision (benefit) for income taxes and equity in loss of unconsolidated subsidiaries
280 290 373 421 1,364 320 431 751 
Provision (benefit) for income taxes
79 91 120 (654)(000)00 00 000 
Net income
$201 $199 $253 $1,075 $1,728 $222 $332 $554 
Earnings per common share:
Basic
$0.14 $0.14 $0.18 $0.78 $1.25 $0.16 $0.24 $0.40 
Diluted
0.14 0.14 0.18 0.78 1.25 0.16 0.24 0.40 
Weighted average common shares outstanding:
Basic
1,386.5 1,386.5 1,386.5 1,386.5 1,386.5 1,386.5 1,386.5 1,386.5 
Diluted
1,386.5 1,386.5 1,386.5 1,386.5 1,386.5 1,386.5 1,386.5 1,386.5 


2
Keurig Xx Xxxxxx Inc.
Pro Forma Condensed Combined Statements of Income
For the First Quarter of 2017
(Unaudited)
(in millions, except per share data) Historical DPSHistorical Maple
Reclassifications(1)
Pro Forma Adjustments(2)
Pro Forma Combined
Net sales $1,510 $968 $— $(12)$2,466 
Cost of sales 607 483 (3)(2)1,085 
Gross profit
903 485 3 (10)1,381 
Selling, general and administrative expenses 621 201 88 2 912 
Transportation and warehousing expenses — 61 (61)— — 
Depreciation and amortization 25 — (25)— — 
Other operating income, net (28)— 1 — (27)
Restructuring expenses — 2 (2)— — 
Income from operations
285 221 2 (12)496 
Interest expense 40 55 (68)69 96 
Interest expense - related party — 25 — (25)— 
Interest income (1)— 1 — — 
Loss on early extinguishment of debt — 52 — — 52 
(Gain) loss on financial instruments, net — (7)7 — — 
(Gain) loss on foreign currency, net — 10 (10)— — 
Other (income) expense, net (2)(2)72 — 68 
Income before provision (benefit) for income taxes and equity in loss of unconsolidated subsidiaries
248 88 — (56)280 
Provision (benefit) for income taxes 71 28 — (20)79 
Income before equity in loss of unconsolidated subsidiaries
177 60 — (36)201 
Equity in loss of unconsolidated subsidiaries, net of tax — — — — — 
Net income
177 60 — (36)201 
Net income attributable to employee redeemable non-controlling interest and mezzanine equity awards — 1 — (1)— 
Net income attributable to the combined company
$177 $59 $— $(35)$201 
Earnings per common share: 
Basic
$0.97 $0.14 
Diluted
0.96 0.14 
Weighted average common shares outstanding: 
Basic
183.4 1,203.1 1,386.5 
Diluted
184.6 1,201.9 1,386.5 
1. Refer to Summary of Reclassifications on page 14.
2. Refer to Summary of Pro Forma Adjustments on page 15.

3
Keurig Xx Xxxxxx Inc.
Pro Forma Condensed Combined Statements of Income
For the Second Quarter of 2017
(Unaudited)
(in millions, except per share data) Historical DPSHistorical Maple
Reclassifications(1)
Pro Forma Adjustments(2)
Pro Forma Combined
Net sales $1,797 $948 $— $(12)$2,733 
Cost of sales 718 493 10 (3)1,218 
Gross profit
1,079 455 (10)(9)1,515 
Selling, general and administrative expenses 684 188 108 1 981 
Transportation and warehousing expenses — 55 (55)— — 
Depreciation and amortization 25 — (25)— — 
Other operating income, net (3)— — — (3)
Restructuring expenses — 28 (28)— — 
Income from operations
373 184 (10)(10)537 
Interest expense 44 36 28 97 205 
Interest expense - related party — 25 — (25)— 
Interest income (1)— 1 — — 
Loss on early extinguishment of debt 49 — — — 49 
(Gain) loss on financial instruments, net — 34 (34)— — 
(Gain) loss on foreign currency, net — 1 (1)— — 
Other (income) expense, net (2)(1)(3)(1)(7)
Income before provision (benefit) for income taxes and equity in loss of unconsolidated subsidiaries
283 89 (1)(81)290 
Provision (benefit) for income taxes 94 28 — (31)91 
Income before equity in loss of unconsolidated subsidiaries
189 61 (1)(50)199 
Equity in loss of unconsolidated subsidiaries, net of tax 1 — (1)— — 
Net income
188 61 — (50)199 
Net income attributable to employee redeemable non-controlling interest and mezzanine equity awards — 1 — (1)— 
Net income attributable to the combined company
$188 $60 $— $(49)$199 
Earnings per common share: 
Basic
$1.02 $0.14 
Diluted
1.02 0.14 
Weighted average common shares outstanding: 
Basic
183.2 1,203.3 1,386.5 
Diluted
183.7 1,202.8 1,386.5 
1. Refer to Summary of Reclassifications on page 14.
2. Refer to Summary of Pro Forma Adjustments on page 15.

4
Keurig Xx Xxxxxx Inc.
Pro Forma Condensed Combined Statements of Income
For the Third Quarter of 2017
(Unaudited)
(in millions, except per share data) Historical DPSHistorical Maple
Reclassifications(1)
Pro Forma Adjustments(2)
Pro Forma Combined
Net sales $1,740 $1,140 $— $(104)$2,776 
Cost of sales 707 593 (7)(49)1,244 
Gross profit
1,033 547 7 (55)1,532 
Selling, general and administrative expenses 640 244 100 (18)966 
Transportation and warehousing expenses — 58 (58)— — 
Depreciation and amortization 26 — (26)— — 
Other operating income, net — — (1)— (1)
Restructuring expenses — 15 (15)— — 
Income from operations
367 230 7 (37)567 
Interest expense 40 36 (15)97 158 
Interest expense - related party — 25 — (25)— 
Interest income (1)— 1 — — 
Loss on early extinguishment of debt 13 2 — — 15 
(Gain) loss on financial instruments, net — (9)9 — — 
(Gain) loss on foreign currency, net — 10 (10)— — 
Other (income) expense, net (2)3 22 (2)21 
Income before provision (benefit) for income taxes and equity in loss of unconsolidated subsidiaries
317 163 — (107)373 
Provision (benefit) for income taxes 114 46 — (40)120 
Income before equity in loss of unconsolidated subsidiaries
203 117 — (67)253 
Equity in loss of unconsolidated subsidiaries, net of tax — — — — — 
Net income
203 117 — (67)253 
Net income attributable to employee redeemable non-controlling interest and mezzanine equity awards — 1 — (1)— 
Net income attributable to the combined company
$203 $116 $— $(66)$253 
Earnings per common share: 
Basic
$1.12 $0.18 
Diluted
1.11 0.18 
Weighted average common shares outstanding: 
Basic
181.4 1,205.1 1,386.5 
Diluted
182.1 1,204.4 1,386.5 
1. Refer to Summary of Reclassifications on page 14.
2. Refer to Summary of Pro Forma Adjustments on page 15.

5
Keurig Xx Xxxxxx Inc.
Pro Forma Condensed Combined Statements of Income
For the Fourth Quarter of 2017
(Unaudited)
(in millions, except per share data) Historical DPSHistorical Maple
Reclassifications(1)
Pro Forma Adjustments(2)
Pro Forma Combined
Net sales $1,643 $1,170 $— $(13)$2,800 
Cost of sales 663 656 3 (5)1,317 
Gross profit
980 514 (3)(8)1,483 
Selling, general and administrative expenses 612 212 97 1 922 
Transportation and warehousing expenses — 66 (66)— — 
Depreciation and amortization 26 — (26)— — 
Other operating income, net (21)— — — (21)
Restructuring expenses — 6 (6)— — 
Income from operations
363 230 (2)(9)582 
Interest expense 41 28 (18)103 154 
Interest expense - related party — 25 — (25)— 
Interest income (1)— 1 — — 
Loss on early extinguishment of debt — 5 — — 5 
(Gain) loss on financial instruments, net — (20)20 — — 
(Gain) loss on foreign currency, net — 5 (5)— — 
Other (income) expense, net (2)4 1 (1)2 
Income before provision (benefit) for income taxes and equity in loss of unconsolidated subsidiaries
325 183 (1)(86)421 
Provision (benefit) for income taxes (184)(437)— (33)(654)
Income before equity in loss of unconsolidated subsidiaries
509 620 (1)(53)1,075 
Equity in loss of unconsolidated subsidiaries, net of tax 1 — (1)— — 
Net income
508 620 —(53)1,075 
Net income attributable to employee redeemable non-controlling interest and mezzanine equity awards — 7 — (7)— 
Net income attributable to the combined company
$508 $613 $—$(46)$1,075 
Earnings per common share: 
Basic
$2.82 $0.78 
Diluted
2.81 0.78 
Weighted average common shares outstanding: 
Basic
180.1 1,206.4 1,386.5 
Diluted
180.8 1,205.7 1,386.5 
1. Refer to Summary of Reclassifications on page 14.
2. Refer to Summary of Pro Forma Adjustments on page 15.

6
Keurig Xx Xxxxxx Inc.
Pro Forma Condensed Combined Statements of Income
For the First Quarter of 2018
(Unaudited)
(in millions, except per share data) Historical DPSHistorical Maple
Reclassifications(1)
Pro Forma Adjustments(2)
Pro Forma Combined
Net sales $1,594 $948 $— $(13)$2,529 
Cost of sales 681 476 3 (13)1,147 
Gross profit
913 472 (3)— 1,382 
Selling, general and administrative expenses 626 190 125 (49)892 
Transportation and warehousing expenses — 56 (56)— — 
Transaction costs — 36 (36)— — 
Depreciation and amortization 27 — (27)— — 
Other operating income, net 1 — 4 1 6 
Restructuring expenses — 6 (6)— — 
Income from operations
259 184 (7)48 484 
Interest expense 41 25 (27)106 145 
Interest expense - related party — 25 — (25)— 
Interest income (1)— 1 — — 
Loss on early extinguishment of debt — 2 — — 2 
(Gain) loss on financial instruments, net — (28)28 — — 
(Gain) loss on foreign currency, net — 13 (13)— — 
Other (income) expense, net — 8 10 (1)17 
Income before provision (benefit) for income taxes and equity in loss of unconsolidated subsidiaries
219 139 (6)(32)320 
Provision (benefit) for income taxes 54 52 — (8)98 
Income before equity in loss of unconsolidated subsidiaries
165 87 (6)(24)222 
Equity in loss of unconsolidated subsidiaries, net of tax 6 — (6)— — 
Net income
159 87 — (24)222 
Net income attributable to employee redeemable non-controlling interest and mezzanine equity awards — 1 — (1)— 
Net income attributable to the combined company
$159 $86 $— $(23)$222 
Earnings per common share: 
Basic
$0.88 $0.16 
Diluted
0.88 0.16 
Weighted average common shares outstanding: 
Basic
179.9 1,206.6 1,386.5 
Diluted
180.8 1,205.7 1,386.5 
1. Refer to Summary of Reclassifications on page 14.
2. Refer to Summary of Pro Forma Adjustments on page 15.

7
Keurig Xx Xxxxxx Inc.
Pro Forma Condensed Combined Statements of Income
For the Second Quarter of 2018
(Unaudited)
(in millions, except per share data) Historical DPSHistorical Maple
Reclassifications(1)
Pro Forma Adjustments(2)
Pro Forma Combined
Net sales $1,886 $949 $— $(13)$2,822 
Cost of sales 790 467 3 (15)1,245 
Gross profit
1,096 482 (3)2 1,577 
Selling, general and administrative expenses 721 212 126 (50)1,009 
Transportation and warehousing expenses — 48 (48)— — 
Transaction costs — 44 (44)— — 
Depreciation and amortization 28 — (28)— — 
Other operating income, net (15)— 2 1 (12)
Restructuring expenses — 8 (8)— — 
Income from operations
362 170 (3)51 580 
Interest expense 43 61 (10)76 170 
Interest expense - related party — 26 — (26)— 
Interest income — — — — — 
Loss on early extinguishment of debt — — — — — 
(Gain) loss on financial instruments, net — (10)10 — — 
(Gain) loss on foreign currency, net — 6 (6)— — 
Other (income) expense, net (2)(12)6 (13)(21)
Income before provision (benefit) for income taxes and equity in loss of unconsolidated subsidiaries
321 99 (3)14 431 
Provision (benefit) for income taxes 83 13 — 3 99 
Income before equity in loss of unconsolidated subsidiaries
238 86 (3)11 332 
Equity in loss of unconsolidated subsidiaries, net of tax 3 — (3)— — 
Net income
235 86 — 11 332 
Net income attributable to employee redeemable non-controlling interest and mezzanine equity awards — 2 — (2)— 
Net income attributable to the combined company
$235 $84 $— $13 $332 
Earnings per common share: 
Basic
$1.30 $0.24 
Diluted
1.30 0.24 
Weighted average common shares outstanding: 
Basic
180.2 1,206.3 1,386.5 
Diluted
181.1 1,205.4 1,386.5 
1. Refer to Summary of Reclassifications on page 14.
2. Refer to Summary of Pro Forma Adjustments on page 15.

8
Keurig Xx Xxxxxx Inc.
Pro Forma Segment Information
(Unaudited)
(in millions) 
Historical(1)
Reclassifications(2)
Pro Forma Adjustments(3)
Pro Forma Combined
Beverage Concentrates 
For the First Quarter of 2017 
Net Sales
$294 $— $(12)$282 
Income from operations
186 — (12)174 
For the Second Quarter of 2017 
Net Sales
356 — (12)344 
Income from operations
237 — (12)225 
For the Third Quarter of 2017 
Net Sales
334 — (13)321 
Income from operations
217 — (13)204 
For the Fourth Quarter of 2017 
Net Sales
349 — (13)336 
Income from operations
225 — (13)212 
Year to Date for 2017 
Net Sales
1,333 — (50)1,283 
Income from operations
865 — (50)815 
For the First Quarter of 2018 
Net Sales
303 — (13)290 
Income from operations
193 — (13)180 
For the Second Quarter of 2018 
Net Sales
371 — (13)358 
Income from operations
248 — (13)235 
3. Agrees to DPS' Form 10-Q as originally filed for each respective period. These numbers have been adjusted for the allocation of other operating income, net.
4. Refer to Summary of Reclassifications on page 14.
5. Refer to Summary of Pro Forma Adjustments on page 15.


9
Keurig Xx Xxxxxx Inc.
Pro Forma Segment Information
(Unaudited)
(in millions) 
Historical(1)
Reclassifications(2)
Pro Forma Adjustments(3)
Pro Forma Combined
Packaged Beverages 
For the First Quarter of 2017 
Net Sales
$1,117 $— $— $1,117 
Income from operations
168 — — 168 
For the Second Quarter of 2017 
Net Sales
1,303 — — 1,303 
Income from operations
200 1 2 203 
For the Third Quarter of 2017 
Net Sales
1,273 — — 1,273 
Income from operations
191 (1)2 192 
For the Fourth Quarter of 2017 
Net Sales
1,176 — — 1,176 
Income from operations
185 (1)4 188 
Year to Date for 2017 
Net Sales
4,869 — — 4,869 
Income from operations
744 (1)8 751 
For the First Quarter of 2018 
Net Sales
1,178 — — 1,178 
Income from operations
150 (1)9 158 
For the Second Quarter of 2018 
Net Sales
1,378 — — 1,378 
Income from operations
148 — 11 159 

1. Agrees to DPS' Form 10-Q as originally filed for each respective period. These numbers have been adjusted for the allocation of other operating income, net.
2. Refer to Summary of Reclassifications on page 14.
3. Refer to Summary of Pro Forma Adjustments on page 15.
10
Keurig Xx Xxxxxx Inc.
Pro Forma Segment Information
(Unaudited)
(in millions) Historical
Reclassifications(1)
Pro Forma Adjustments(2)
Pro Forma Combined
Latin America Beverages 
For the First Quarter of 2017 
Net Sales
$99 $— $— $99 
Income from operations
11 1 — 12 
For the Second Quarter of 2017 
Net Sales
138 — — 138 
Income from operations
24 2 — 26 
For the Third Quarter of 2017 
Net Sales
133 — — 133 
Income from operations
11 — — 11 
For the Fourth Quarter of 2017 
Net Sales
118 — — 118 
Income from operations
16 (1)— 15 
Year to Date for 2017 
Net Sales
488 — — 488 
Income from operations
62 2 — 64 
For the First Quarter of 2018 
Net Sales
113 — — 113 
Income from operations
13 1 — 14 
For the Second Quarter of 2018 
Net Sales
137 — — 137 
Income from operations
27 (1)— 26 

1. Agrees to DPS' Form 10-Q as originally filed for each respective period. These numbers have been adjusted for the allocation of other operating income, net.
2. Refer to Summary of Reclassifications on page 14.
3. Refer to Summary of Pro Forma Adjustments on page 15.
11
Keurig Xx Xxxxxx Inc.
Pro Forma Segment Information
(Unaudited)
(in millions) 
Historical(1)
Reclassifications(2)
Pro Forma Adjustments(3)
Pro Forma Combined
Coffee Systems 
For the First Quarter of 2017 
Net Sales
$968 $— $— $968 
Income from operations
274 1 — 275 
For the Second Quarter of 2017 
Net Sales
948 — — 948 
Income from operations
223 (6)— 217 
For the Third Quarter of 2017 
Net Sales
1,140 — (91)1,049 
Income from operations
288 (1)(28)259 
For the Fourth Quarter of 2017 
Net Sales
1,170 — — 1,170 
Income from operations
260 — — 260 
Year to Date for 2017 
Net Sales
4,226 — (91)4,135 
Income from operations
1,045 (6)(28)1,011 
For the First Quarter of 2018 
Net Sales
948 — — 948 
Income from operations
258 (4)— 254 
For the Second Quarter of 2018 
Net Sales
949 — — 949 
Income from operations
274 — — 274 

1. Agrees to historical GAAP financial statements for KGM's three months ended September 30, 2017 (as filed in Exhibit 99.4 to the Form 8-K/A on August 8, 2018). The presentation differs from the prior year KDP reported results within the Form 10-Q as a result of the application of the reclassifications shown above.
2. Refer to Summary of Reclassifications on page 14.
3. Refer to Summary of Pro Forma Adjustments on page 15.

12
Keurig Xx Xxxxxx Inc.
Pro Forma Segment Information
(Unaudited)
(in millions) Historical KGMHistorical DPS
Reclassifications(1)
Pro Forma Adjustments(2)
Pro Forma Combined
Corporate 
For the First Quarter of 2017 
Income from operations
$(53)$(80)$— $— $(133)
For the Second Quarter of 2017 
Income from operations
(39)(86)(7)— (132)
For the Third Quarter of 2017 
Income from operations
(58)(52)9 2 (99)
For the Fourth Quarter of 2017 
Income from operations
(30)(61)— — (91)
Year to Date for 2017 
Income from operations
(180)(279)2 2 (455)
For the First Quarter of 2018 
Income from operations
(74)(95)(3)52 (120)
For the Second Quarter of 2018 
Income from operations
(104)(61)(2)53 (114)

1. Refer to Summary of Reclassifications on page 14.
2. Refer to Summary of Pro Forma Adjustments on page 15.
13

Summary of Reclassifications
Reclassifications included in the Pro Forma Condensed Combined Statements of Income are as follows:
a. Foreign currency transaction gains and losses were reclassified from Cost of sales and Selling, general and administrative ("SG&A") expenses in the historical DPS Statements of Income to Other (income) expense, net.
b. Gains and losses related to impairment and sales of fixed assets were reclassified from Cost of sales in the historical Maple Statements of Income to Other operating income, net.
c. Adjustment to remove the impact of the step-up of inventory recorded in purchase price accounting.
d. Transportation and warehousing expenses were reclassified from Transportation and warehousing expenses in the historical Maple Statements of Income to SG&A expenses.
e. Transaction costs were reclassified from Transaction costs in the historical Maple Statements of Income to SG&A expenses.
f. Restructuring expenses were reclassified from Restructuring expenses in the historical Maple Statements of Income to SG&A expenses.
g. Depreciation and amortization expenses were reclassified from Depreciation and amortization in the historical DPS Statements of Income to SG&A expenses.
h. Interest income was reclassified from Interest income in the historical DPS Statements of Income to Other (income) expense, net.
i. Gains and losses on derivative instruments were reclassified from (Gain) loss on financial instruments, net in the historical Maple Statements of Income to either Cost of goods sold, Interest expense or Other (income) expense, net in order to match the income statement presentation to the underlying nature of the transaction. 
j. The Company's share of earnings and losses from equity method investments was reclassified from Equity in loss of unconsolidated subsidiaries in the historical DPS Statements of Income to Other (income) expense, net.

14

Summary of Pro Forma Adjustments
Pro forma adjustments included in the Pro Forma Condensed Combined Statements of Income are as follows:
a. A decrease in Net sales to remove the historical deferred revenue associated with DPS' arrangements with PepsiCo, Inc. and The Coca-Cola Company, which were eliminated in the fair value adjustments for DPS as part of purchase price accounting.
b. An increase in Net sales to remove the historical amortization of certain capitalized upfront customer incentive program payments. These were eliminated in the fair value adjustments for DPS as these upfront payments were revalued within the customer relationship intangible assets recorded in purchase price accounting.
c. Adjustments to SG&A expenses due to changes in amortization as a result of the fair value adjustments for DPS' intangible assets with definite lives as part of purchase price accounting.
d. Adjustments to SG&A expenses due to changes in depreciation as a result of the fair value adjustments for DPS' property, plant and equipment as part of purchase price accounting.
e. A decrease to SG&A expenses for both DPS and Maple to remove non-recurring transaction costs as a result of the Transaction.
f. Removal of the Interest expense - related party caption for Maple, as the related party debt was capitalized into Additional paid-in capital immediately prior to the Transaction.
g. Adjustments to Interest expense to remove the historical amortization of deferred debt issuance costs, discounts and premiums and to record incremental amortization as a result of the fair value adjustments for DPS' senior unsecured notes as part of purchase price accounting.
h. Adjustments to Interest expense to record incremental interest expense and amortization of deferred debt issuance costs for borrowings related to the Transaction.
i. Removal of the Net income attributable to employee redeemable non-controlling interest and mezzanine equity awards caption as the Maple non-controlling interest was eliminated to reflect the capital structure of the combined company.   
j. As a result of the change in year-end for KGM, the Company has removed the 53rd week from its pro forma condensed combined statement of income as it would not be representative of the Company if the merger had occurred on December 31, 2016.

15
Keurig Xx Xxxxxx Inc.
Reconciliation of GAAP and Non-GAAP Information
(Unaudited)
The Company reports its financial results in accordance with U.S. GAAP. However, management believes that certain non-GAAP financial measures that reflect the way management evaluates the business may provide investors with additional information regarding the company's results, trends and ongoing performance on a comparable basis. Specifically, investors should consider the following with respect to our quarterly results:
Adjusted: Defined as certain financial statement captions and metrics adjusted for certain items affecting comparability.
Items affecting comparability: Defined as certain items that are excluded for comparison to prior year periods, adjusted for the tax impact as applicable. Tax impact is determined based upon an approximate rate for each item. For each period, management adjusts for (i) the unrealized mark-to-market impact of derivative instruments not designated as xxxxxx in accordance with U.S. GAAP; (ii) the amortization associated with definite-lived intangible assets; (iii) the amortization of the deferred financing costs associated with the Xx Xxxxxx Snapple Group Merger ("DPSG Merger") and Keurig Green Mountain, Inc. Acquisition ("Keurig Acquisition"); (iv) stock compensation expense attributable to the matching awards made to employees who made an initial investment in the Keurig Green Mountain, Inc. Executive Ownership Plan; and (v) other certain items that are excluded for comparison purposes to prior year periods.
The other certain items excluded for comparison purposes for the periods presented herein include (i) restructuring and integration expenses related to the DPSG Merger and the Keurig Acquisition; (ii) productivity expenses; (iii) provision for settlements; (iv) the loss on early extinguishment of debt related to the redemption of debt; and (v) the impact of the recent federal tax law change.
Reconciliations for these items are provided in the tables below.

16
Keurig Xx Xxxxxx Inc.
Reconciliation of Certain Pro Forma Items to Non-GAAP Adjusted Pro Forma Items
For the First Quarter of 2017
(Unaudited, in millions, except per share data)
Pro Forma
Mark to Market
Amortization of Intangibles
Amortization of Deferred Financing Costs
Restructuring & Integration Expenses Productivity Transaction Costs 
Stock Compensation
Loss on Early Payment of Debt 
Total Adjustments
Adjusted Pro Forma
Net sales $2,466 $— $— $— $— $— $— $— $— $— $2,466 
Cost of sales 1,085 20 — — — (1)— — — 19 1,104 
Gross profit 1,381 (20)— — — 1 — — — (19)1,362 
Gross margin 56.0 %(0.8)%— %— %— %— %— %— %— %(0.8)%55.2 %
Selling, general and administrative expenses $912 $(14)$(27)$— $(2)$(28)$(19)$(5)$— $(95)$817 
Other operating income, net (27)— — — — — — — — — (27)
Income from operations 496 (6)27 — 2 29 19 5 — 76 572 
Operating margin 20.1 %(0.2)%1.1 %— %0.1 %1.2 %0.8 %0.2 %— %3.1 %23.2 %
Interest expense $96 $68 $— $(7)$— $— $— $— $— $61 $157 
Loss on early extinguishment of debt 52 — — — — — — — (52)(52)— 
Other (income) expense, net 68 (1)— — — — — — — (1)67 
Income before provision for income taxes 280 (00)00 0 0 00 00 5 52 68 348 
Provision for income taxes 79 (27)10 3 1 10 7 2 19 25 104 
Effective tax rate 28.2 %29.9 %
Net income $201 $(46)$17 $4 $1 $19 $12 $3 $33 $43 $244 
Reported EPS Adjusted EPS 
Diluted earnings per common share $0.14 $(0.03)$0.02 $— $— $0.02 $0.01 $— $0.02 $0.04 $0.18 
Diluted weighted average shares 1,386.5 1,386.5 


17
Keurig Xx Xxxxxx Inc.
Reconciliation of Certain Pro Forma Items to Non-GAAP Adjusted Pro Forma Items
For the Second Quarter of 2017
(Unaudited, in millions, except per share data)
Pro Forma
Mark to Market
Amortization of Intangibles
Amortization of Deferred Financing Costs
Restructuring & Integration Expenses Productivity Transaction Costs 
Stock Compensation
Loss on Early Payment of Debt 
Total Adjustments
Adjusted Pro Forma
Net sales $2,733 $— $— $— $— $— $— $— $— $— $2,733 
Cost of sales 1,218 (12)— — — (6)— — — (18)1,200 
Gross profit 1,515 12 — — — 6 — — — 18 1,533 
Gross margin 55.4 %0.4 %— %— %— %0.3 %— %— %— %0.7 %56.1 %
Selling, general and administrative expenses $981 $(6)$(27)$— $(28)$(10)$(3)$(7)$— $(81)$900 
Other operating income, net (3)— — — — — — — — — (3)
Income from operations 537 18 27 — 28 16 3 7 — 99 636 
Operating margin 19.6 %0.7 %1.0 %— %1.0 %0.6 %0.1 %0.3 %— %3.7 %23.3 %
Interest expense $205 $(22)$— $(6)$— $— $— $— $— $(28)$177 
Loss on early extinguishment of debt 49 — — — — — — — (49)(49)— 
Other (income) expense, net (7)(1)— — — — — — — (1)(8)
Income before provision for income taxes 290 41 27 6 28 16 3 7 49 177 467 
Provision for income taxes 91 15 10 3 5 11 1 3 17 65 156 
Effective tax rate 31.4 %33.4 %
Net income $199 $26 $17 $3 $23 $5 $2 $4 $32 112 $311 
Reported EPS Adjusted EPS 
Diluted earnings per common share $0.14 $0.02 $0.01 $— $0.02 $— $— $— $0.03 $0.08 $0.22 
Diluted weighted average shares 1,386.5 1,386.5 


18
Keurig Xx Xxxxxx Inc.
Reconciliation of Certain Pro Forma Items to Non-GAAP Adjusted Pro Forma Items
For the Third Quarter of 2017
(Unaudited, in millions, except per share data)
Pro Forma
Mark to Market
Amortization of Intangibles
Amortization of Deferred Financing Costs
Restructuring & Integration Expenses Productivity Transaction Costs 
Stock Compensation
Loss on Early Payment of Debt Provision for Settlements 
Total Adjustments
Adjusted Pro Forma
Net sales $2,776 $— $— $— $— $— $— $— $— $— $— $2,776 
Cost of sales 1,244 15 — — — (2)— — — — 13 1,257 
Gross profit 1,532 (15)— — — 2 — — — — (13)1,519 
Gross margin 55.2 %(0.5)%— %— %— %— %— %— %— %— %(0.5)%54.7 %
Selling, general and administrative expenses $966 $10 $(26)$— $(15)$(14)$(1)$(9)$— $(1)$(56)$910 
Other operating income, net (1)— — — — — — — — — — (1)
Income from operations 567 (25)26 — 15 16 1 9 — 1 43 610 
Operating margin 20.4 %(0.9)%1.0 %— %0.6 %0.6 %— %0.3 %— %— %1.6 %22.0 %
Interest expense $158 $8 $— $(6)$— $— $— $— $— $— $2 $160 
Loss on early extinguishment of debt 15 — — — — — — — (15)— (15)— 
Other (income) expense, net 21 (6)— — — — — — — — (6)15 
Income before provision for income taxes 000 (00)00 0 00 00 1 9 15 1 62 435 
Provision for income taxes 120 (11)9 1 6 6 — 2 5 — 18 138 
Effective tax rate 32.2 %31.7 %
Net income $253 $(16)$17 $5 $9 $10 $1 $7 $10 $1 44 $297 
Reported EPS Adjusted EPS 
Diluted earnings per common share $0.18 $(0.01)$0.01 $— $0.01 $0.01 $— $— $0.01 $— $0.03 $0.21 
Diluted weighted average shares 1,386.5 1,386.5 


19
Keurig Xx Xxxxxx Inc.
Reconciliation of Certain Pro Forma Items to Non-GAAP Adjusted Pro Forma Items
For the Fourth Quarter of 2017
(Unaudited, in millions, except per share data)
Pro Forma Mark to Market Amortization of Intangibles 
Amortization of Deferred Financing Costs
Restructuring & Integration Expenses Productivity Tax Reform Stock Compensation Loss on Early Payment of Debt Provision for Settlements Total Adjustments Adjusted Pro Forma 
Net sales $2,800 $— $— $— $— $— $— $— $— $— $— $2,800 
Cost of sales 1,317 2 — — (11)— — — — — (9)1,308 
Gross profit 1,483 (2)— — 11 — — — — — 9 1,492 
Gross margin 53.0 %(0.1)%— %— %0.4 %— %— %— %— %— %0.3 %53.3 %
Selling, general and administrative expenses $922 $10 $(31)$— $(10)$(3)$— $(11)$— $3 $(42)$880 
Other operating income, net (21)— — — (4)— — — — — (4)(25)
Income from operations 582 (12)31 — 25 3 — 11 — (3)55 637 
Operating margin 20.8 %(0.4)%1.0 %— %0.9 %0.1 %— %0.4 %— %(0.1)%1.9 %22.7 %
Interest expense $154 $18 $— $(5)$16 $— $— $— $— $— $29 $183 
Loss on early extinguishment of debt 5 — — — — — — — (5)— (5)— 
Other (income) expense, net 2 6 — — — — — — — — 6 8 
Income before provision for income taxes 421 (36)31 5 9 3 — 11 5 (3)25 446 
Provision for income taxes (654)(5)3 — (5)— 781 — (4)(1)769 115 
Effective tax rate (155.4)%25.8 %
Net income $1,075 $(31)$28 $5 $14 $3 $(781)$11 $9 $(2)(744)$331 
Reported EPS Adjusted EPS 
Diluted earnings per common share $0.78 $(0.02)$0.02 $— $0.01 $— $(0.56)$0.01 $— $—$(0.54)$0.24 
Diluted weighted average shares 1,386.5 1,386.5 


20
Keurig Xx Xxxxxx Inc.
Reconciliation of Certain Pro Forma Items to Non-GAAP Adjusted Pro Forma Items
For the First Quarter of 2018
(Unaudited, in millions, except per share data)
Pro Forma Mark to Market Amortization of Intangibles Amortization of Deferred Financing Costs Restructuring & Integration Expenses Productivity Tax Reform Stock Compensation Loss on Early Payment of Debt Provision for Settlements Total Adjustments Adjusted Pro Forma 
Net sales $2,529 $— $— $— $— $— $— $— $— $4 $4 $2,533 
Cost of sales 1,147 (14)— — — (4)— — — — (18)1,129 
Gross profit 1,382 14 — — — 4 — — — 4 22 1,404 
Gross margin 54.6 %0.6 %— %— %— %0.1 %— %— %— %0.1 %0.8 %55.4 %
Selling, general and administrative expenses $892 $— $(28)$— $(6)$(14)$— $(6)$— $2 $(52)$840 
Other operating income, net 6 — — — — (4)— — — — (4)2 
Income from operations 484 14 28 — 6 22 — 6 — 2 78 562 
Operating margin 19.1 %0.6 %1.1 %— %0.2 %0.9 %— %0.2 %— %0.1 %3.1 %22.2 %
Interest expense $145 $27 $— $(1)$— $— $— $— $— $— $26 $171 
Loss on early extinguishment of debt 2 — — — — — — — (2)— (2)— 
Other (income) expense, net 17 4 — — — — — — — — 4 21 
Income before provision for income taxes 320 (17)28 1 6 22 — 6 2 2 50 370 
Provision for income taxes 98 (4)7 1 — 6 (3)2 — — 9 107 
Effective tax rate 30.6 %28.9 %
Net income $222 $(13)$21 $— $6 $16 $3 $4 $2 $2 41 $263 
Reported EPS Adjusted EPS 
Diluted earnings per common share $0.16 $— $0.02 $— $— $0.01 $— $— $— $— $0.03 $0.19 
Diluted weighted average shares 1,386.5 1,386.5 




21
Keurig Xx Xxxxxx Inc.
Reconciliation of Certain Pro Forma Items to Non-GAAP Adjusted Pro Forma Items
For the Second Quarter of 2018
(Unaudited, in millions, except per share data)
Pro Forma Mark to Market Amortization of Intangibles Amortization of Deferred Financing Costs Restructuring & Integration Expenses Productivity Tax Reform Stock Compensation Provision for Settlements Total Adjustments Adjusted Pro Forma 
Net sales $2,822 $— $— $— $— $— $— $— $— $— $2,822 
Cost of sales 1,245 (2)— — — (2)— — — (4)1,241 
Gross profit 1,577 2 — — — 2 — — — 4 1,581 
Gross margin 55.9 %— %— %— %— %0.1 %— %— %— %0.1 %56.0 %
Selling, general and administrative expenses $1,009 $9 $(31)$— $(33)$7 $— $(6)$(2)$(56)$953 
Other operating income, net (12)— — — — — — — — — (12)
Income from operations 580 (7)31 — 33 (5)— 6 2 60 640 
Operating margin 20.6 %(0.2)%1.1 %— %1.2 %(0.2)%— %0.2 %— %2.1 %22.7 %
Interest expense $170 $10 $— $— $— $— $— $— $— $10 $180 
Loss on early extinguishment of debt — — — — — — — — — — — 
Other (income) expense, net (21)2 — — — — — — — 2 (19)
Income before provision for income taxes 431 (19)31 — 33 (5)— 6 2 48 479 
Provision for income taxes 99 (5)8 — 6 (1)10 — 1 19 118 
Effective tax rate 23.0 %24.6 %
Net income $332 $(14)$23 $— $27 $(4)$(10)$6 $1 29 $361 
Reported EPS Adjusted EPS 
Diluted earnings per common share $0.24 $— $0.01 $— $0.01 $—$— $— $— $0.02 $0.26 
Diluted weighted average shares 1,386.5 1,386.5 


22
Keurig Xx Xxxxxx Inc.
Reconciliation of Certain Pro Forma Segment Items to
Certain Non-GAAP Adjusted Pro Forma Segment Items
(Unaudited)
(in millions) Beverage Concentrates Packaged Beverages Latin America Beverages Coffee Systems Corporate 
For the First Quarter of 2017: 
Pro Forma Operating Income $174 $168 $12 $275 $(133)
Mark to Market — — — — (6)
Amortization of Intangibles — 3 — 24 — 
Restructuring and Integration Expenses — — — 2 — 
Productivity — — — 13 16 
Transaction Costs — — — — 19 
Stock Compensation — — — — 5 
Total Adjustments — 3 — 39 34 
Adjusted Pro Forma Operating Income $174 $171 $12 $314 $(99)
For the Second Quarter of 2017: 
Pro Forma Operating Income $225 $203 $26 $217 $(132)
Mark to Market — — — — 18 
Amortization of Intangibles 1 2 — 24 — 
Restructuring and Integration Expenses — — — 28 — 
Productivity — — — 11 5 
Transaction Costs — 2 — — 1 
Stock Compensation — — — 7 — 
Total Adjustments 1 4 — 70 24 
Adjusted Pro Forma Operating Income $226 $207 $26 $287 $(108)
For the Third Quarter of 2017: 
Pro Forma Operating Income $204 $192 $11 $259 $(99)
Mark to Market — — — — (25)
Amortization of Intangibles — 2 — 24 — 
Restructuring and Integration Expenses — — — 15 — 
Productivity — — — 14 2 
Transaction Costs — 1 — — — 
Provision for Settlements — — — — 1 
Stock Compensation — — — — 9 
Total Adjustments — 3 — 53 (13)
Adjusted Pro Forma Operating Income $204 $195 $11 $312 $(112)
23
Keurig Xx Xxxxxx Inc.
Reconciliation of Certain Pro Forma Segment Items to
Certain Non-GAAP Adjusted Pro Forma Segment Items
(Unaudited)
Beverage Concentrates Packaged Beverages Latin America Beverages Coffee Systems Corporate 
For the Fourth Quarter of 2017: 
Pro Forma Operating Income $212 $188 $15 $260 $(90)
Mark to Market — — — — (12)
Amortization of Intangibles — 2 — 29 — 
Restructuring and Integration Expenses — — — — 25 
Productivity — — — 2 1 
Provision for Settlements — — — — (3)
Stock Compensation — — — 11 — 
Total Adjustments — 2 — 42 11 
Adjusted Pro Forma Operating Income $212 $190 $15 $302 $(79)
For the First Quarter of 2018: 
Pro Forma Operating Income $180 $158 $14 $254 $(120)
Mark to Market — — — — 14 
Amortization of Intangibles — 2 — 26 — 
Restructuring and Integration Expenses — — — 4 2 
Productivity — — — 18 4 
Stock Compensation — — — 6 — 
Provision for Settlements — — — 4 (2)
Total Adjustments — 2 — 58 18 
Adjusted Pro Forma Operating Income $180 $160 $14 $312 $(102)
For the Second Quarter of 2018: 
Pro Forma Operating Income $235 $159 $26 $274 $(114)
Mark to Market — — — — (7)
Amortization of Intangibles 1 2 — 28 — 
Restructuring and Integration Expenses — — — — 33 
Productivity — — — (2)(3)
Stock Compensation — — — 6 — 
Provision for Settlements — — — — 2 
Total Adjustments 1 2 — 32 25 
Adjusted Pro Forma Operating Income $236 $161 $26 $306 $(89)

24
AutoNDA by SimpleDocs

Document Metadata

Filed: November 7th, 2018
Draft better contracts in just 5 minutes Get the weekly Law Insider newsletter packed with expert videos, webinars, ebooks, and more!