Cover Page
Cover Page - USD ($) $ in Billions | 12 Months Ended | ||
Dec. 31, 2022 | Feb. 14, 2023 | Jun. 30, 2022 | |
Document Information [Line Items] | |||
Document Type | 10-K | ||
Document Annual Report | true | ||
Document Period End Date | Dec. 31, 2022 | ||
Current Fiscal Year End Date | --12-31 | ||
Document Transition Report | false | ||
Entity File Number | 1-14829 | ||
Entity Registrant Name | Molson Coors Beverage Company | ||
Entity Incorporation, State or Country Code | DE | ||
Entity Tax Identification Number | 84-0178360 | ||
Entity Address, Address Line One | P.O. Box 4030, NH353 | ||
Entity Address, City or Town | Golden | ||
Entity Address, State or Province | CO | ||
Entity Address, Country | US | ||
Entity Address, Postal Zip Code | 80401 | ||
City Area Code | 303 | ||
Local Phone Number | 279-6565 | ||
Entity Well-known Seasoned Issuer | Yes | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | Yes | ||
Entity Interactive Data Current | Yes | ||
Entity Filer Category | Large Accelerated Filer | ||
Entity Small Business | false | ||
Entity Emerging Growth Company | false | ||
ICFR Auditor Attestation Flag | true | ||
Entity Shell Company | false | ||
Entity Public Float | $ 9.9 | ||
Documents Incorporated by Reference | Portions of the registrant's definitive proxy statement for the registrant's 2023 annual meeting of stockholders, which will be filed no later than 120 days after the close of the registrant's fiscal year ended December 31, 2022, are incorporated by reference under Part III of this Annual Report on Form 10-K. | ||
Entity Central Index Key | 0000024545 | ||
Document Fiscal Year Focus | 2022 | ||
Document Fiscal Period Focus | FY | ||
Amendment Flag | false | ||
Common Class A | |||
Document Information [Line Items] | |||
Entity Common Stock, shares outstanding | 2,562,506 | ||
Common Class B | |||
Document Information [Line Items] | |||
Entity Common Stock, shares outstanding | 200,027,358 | ||
Canada | |||
Document Information [Line Items] | |||
Entity Address, Address Line One | 111 Boulevard Robert-Bourassa, 9th Floor | ||
Entity Address, City or Town | Montréal | ||
Entity Address, State or Province | QC | ||
Entity Address, Country | CA | ||
Entity Address, Postal Zip Code | H3C 2M1 | ||
City Area Code | 514 | ||
Local Phone Number | 521-1786 | ||
NEW YORK STOCK EXCHANGE, INC. | Common Class A | |||
Document Information [Line Items] | |||
Title of 12(b) Security | Class A Common Stock, $0.01 par value | ||
Trading Symbol | TAP.A | ||
Security Exchange Name | NYSE | ||
NEW YORK STOCK EXCHANGE, INC. | Common Class B | |||
Document Information [Line Items] | |||
Title of 12(b) Security | Class B Common Stock, $0.01 par value | ||
Trading Symbol | TAP | ||
Security Exchange Name | NYSE | ||
NEW YORK STOCK EXCHANGE, INC. | Senior Notes Due 2024 | |||
Document Information [Line Items] | |||
Title of 12(b) Security | 1.25% Senior Notes due 2024 | ||
Trading Symbol | TAP | ||
Security Exchange Name | NYSE |
Audit Information
Audit Information | 12 Months Ended |
Dec. 31, 2022 | |
Auditor Information [Abstract] | |
Auditor Firm ID | 238 |
Auditor Name | PricewaterhouseCoopers LLP |
Auditor Location | Milwaukee, Wisconsin |
CONSOLIDATED STATEMENTS OF OPER
CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) shares in Millions, $ in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Income Statement [Abstract] | |||
Sales | $ 12,807.5 | $ 12,449.9 | $ 11,723.8 |
Excise taxes | (2,106.5) | (2,170.2) | (2,069.8) |
Net sales | 10,701 | 10,279.7 | 9,654 |
Cost of goods sold | (7,045.8) | (6,226.3) | (5,885.7) |
Gross profit | 3,655.2 | 4,053.4 | 3,768.3 |
Marketing, general and administrative expenses | (2,618.8) | (2,554.5) | (2,437) |
Goodwill impairment | (845) | 0 | (1,484.3) |
Other operating income (expense), net | (38.6) | (44.5) | (255.9) |
Equity income (loss) | 4.7 | 0 | 0 |
Operating income (loss) | 157.5 | 1,454.4 | (408.9) |
Interest expense | (250.6) | (260.3) | (274.6) |
Interest income | 4.3 | 2 | 3.3 |
Other pension and postretirement benefits (costs), net | 36.6 | 46.4 | 30.3 |
Other non-operating income (expense), net | (10.3) | (3.5) | 6 |
Total non-operating income (expense), net | (220) | (215.4) | (235) |
Income (loss) before income taxes | (62.5) | 1,239 | (643.9) |
Income tax benefit (expense) | (124) | (230.5) | (301.8) |
Net income (loss) | (186.5) | 1,008.5 | (945.7) |
Net (income) loss attributable to noncontrolling interests | 11.2 | (2.8) | (3.3) |
Net income (loss) attributable to Molson Coors Beverage Company | $ (175.3) | $ 1,005.7 | $ (949) |
Basic net income (loss) attributable to Molson Coors Beverage Company per share: | |||
Basic (in dollars per share) | $ (0.81) | $ 4.63 | $ (4.38) |
Diluted net income (loss) attributable to Molson Coors Beverage Company per share: | |||
Diluted (in dollars per share) | $ (0.81) | $ 4.62 | $ (4.38) |
Weighted average shares outstanding, basic: | |||
Basic (in shares) | 216.9 | 217.1 | 216.8 |
Weighted average shares outstanding, diluted: | |||
Dilutive effect of share-based awards (in shares) | 0 | 0.5 | 0 |
Diluted (in shares) | 216.9 | 217.6 | 216.8 |
CONSOLIDATED STATEMENTS OF COMP
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Statement of Comprehensive Income [Abstract] | |||
Net income (loss) including noncontrolling interests | $ (186.5) | $ 1,008.5 | $ (945.7) |
Other comprehensive income (loss), net of tax | |||
Foreign currency translation adjustments | (329.8) | (28.4) | 113.6 |
Reclassification of cumulative translation adjustment | 12.1 | 7.5 | 0 |
Unrealized gain (loss) on derivative instruments | 153.8 | 37.4 | (85.7) |
Reclassification of derivative (gain) loss to income (loss) | 9.4 | 5.5 | (0.4) |
Net change in pension and other postretirement benefit assets and liabilities | (59.6) | 118.4 | (39.9) |
Pension and other postretirement prior service (benefit) cost and net actuarial (gain) loss amortization and settlements to income (loss) | (1.6) | 5.4 | (5.2) |
Ownership share of unconsolidated subsidiaries' other comprehensive income (loss) | 13.8 | 15.5 | 14.2 |
Total other comprehensive income (loss), net of tax | (201.9) | 161.3 | (3.4) |
Comprehensive income (loss) | (388.4) | 1,169.8 | (949.1) |
Comprehensive (income) loss attributable to noncontrolling interests | 13.6 | (2.3) | (5.5) |
Comprehensive income (loss) attributable to Molson Coors Beverage Company | $ (374.8) | $ 1,167.5 | $ (954.6) |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS - USD ($) $ in Millions | Dec. 31, 2022 | Dec. 31, 2021 |
Current assets | ||
Cash and cash equivalents | $ 600 | $ 637.4 |
Accounts and other receivables | ||
Trade, less allowance for doubtful accounts of $13.2 and $19.0, respectively | 739.8 | 678.9 |
Other receivables | 126.4 | 200.5 |
Inventories, less allowance for obsolete inventories of $41.1 and $25.8, respectively | 792.9 | 804.7 |
Other current assets, net | 378.9 | 457.2 |
Total current assets | 2,638 | 2,778.7 |
Properties, net | 4,222.8 | 4,192.4 |
Goodwill | 5,291.9 | 6,152.6 |
Other intangibles, net | 12,800.1 | 13,286.8 |
Other assets | 915.5 | 1,208.5 |
Total assets | 25,868.3 | 27,619 |
Current liabilities | ||
Accounts payable and other current liabilities | 2,978.3 | 3,107.3 |
Current portion of long-term debt and short-term borrowings | 397.1 | 514.9 |
Total current liabilities | 3,375.4 | 3,622.2 |
Long-term debt | 6,165.2 | 6,647.2 |
Pension and postretirement benefits | 473.3 | 654.4 |
Deferred tax liabilities | 2,646.4 | 2,704.6 |
Other liabilities | 292.8 | 326.5 |
Total liabilities | 12,953.1 | 13,954.9 |
Commitments and contingencies (Note 13) | ||
Capital stock | ||
Preferred stock, $0.01 par value (authorized: 25.0 shares; none issued) | 0 | 0 |
Paid-in capital | 7,006.4 | 6,970.9 |
Retained earnings | 6,894.1 | 7,401.5 |
Accumulated other comprehensive income (loss) | (1,205.5) | (1,006) |
Class B common stock held in treasury at cost (10.5 shares and 9.5 shares, respectively) | (522.9) | (471.4) |
Total Molson Coors Beverage Company stockholders' equity | 12,689.7 | 13,417.1 |
Noncontrolling interests | 225.5 | 247 |
Total equity | 12,915.2 | 13,664.1 |
Total liabilities and equity | 25,868.3 | 27,619 |
Common Class A | ||
Capital stock | ||
Common stock issued | 0 | 0 |
Common Class B | ||
Capital stock | ||
Common stock issued | 2.1 | 2.1 |
Class A exchangeable shares | ||
Capital stock | ||
Exchangeable shares issued | 102.2 | 102.2 |
Class B exchangeable shares | ||
Capital stock | ||
Exchangeable shares issued | $ 413.3 | $ 417.8 |
CONSOLIDATED BALANCE SHEETS (PA
CONSOLIDATED BALANCE SHEETS (PARENTHETICAL) - USD ($) $ in Millions | Dec. 31, 2022 | Dec. 31, 2021 |
Allowance for doubtful accounts | $ 13.2 | $ 19 |
Allowance for obsolete inventories | $ 41.1 | $ 25.8 |
Preferred stock, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Preferred stock, shares authorized (in shares) | 25,000,000 | 25,000,000 |
Preferred stock, shares issued (in shares) | 0 | 0 |
Treasury stock, shares (in shares) | 10,500,000 | 9,500,000 |
Common Class A | ||
Common stock, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Common stock, shares authorized (in shares) | 500,000,000 | 500,000,000 |
Common stock, shares issued (in shares) | 2,600,000 | 2,600,000 |
Common stock, shares outstanding (in shares) | 2,600,000 | 2,600,000 |
Common Class B | ||
Common stock, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Common stock, shares authorized (in shares) | 500,000,000 | 500,000,000 |
Common stock, shares issued (in shares) | 210,500,000 | 210,100,000 |
Class A exchangeable shares | ||
Exchangeable stock, shares issued (in shares) | 2,700,000 | 2,700,000 |
Exchangeable stock, shares outstanding (in shares) | 2,700,000 | 2,700,000 |
Class B exchangeable shares | ||
Exchangeable stock, shares issued (in shares) | 11,000,000 | 11,000,000 |
Exchangeable stock, shares outstanding (in shares) | 11,100,000 | 11,100,000 |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Cash flows from operating activities | |||
Net income (loss) including noncontrolling interests | $ (186.5) | $ 1,008.5 | $ (945.7) |
Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities | |||
Depreciation and amortization | 684.8 | 786.1 | 922 |
Amortization of debt issuance costs and discounts | 7.7 | 6.7 | 8.1 |
Share-based compensation | 33.6 | 32.1 | 24.2 |
Goodwill impairment | 845 | 0 | 1,484.3 |
(Gain) loss on sale or impairment of properties and other assets, net | 18.6 | 9.1 | 69.2 |
Unrealized (gain) loss on foreign currency fluctuations and derivative instruments, net | 236.4 | (233.8) | (111.4) |
Equity income (loss) | (4.7) | 0 | 0 |
Income tax (benefit) expense | 124 | 230.5 | 301.8 |
Income tax (paid) received | (76.6) | (227) | (127) |
Interest expense, excluding amortization of debt issuance costs and discounts | 242.9 | 253.6 | 266 |
Interest paid | (240) | (256.2) | (271.9) |
Change in current assets and liabilities (net of impact of business combinations) and other | |||
Receivables | (108.5) | (137.6) | 160.8 |
Inventories | (64.6) | (143.9) | (46.2) |
Payables and other current liabilities | (16.1) | 285.5 | (50.1) |
Other assets and other liabilities | 6 | (40.1) | 11.6 |
Net cash provided by (used in) operating activities | 1,502 | 1,573.5 | 1,695.7 |
Cash flows from investing activities | |||
Additions to properties | (661.4) | (522.6) | (574.8) |
Proceeds from sales of properties and other assets | 32.2 | 26 | 158.8 |
Other | 4.1 | (13.3) | 2.4 |
Net cash provided by (used in) investing activities | (625.1) | (509.9) | (413.6) |
Cash flows from financing activities | |||
Exercise of stock options under equity compensation plans | 3.1 | 4.6 | 4.1 |
Dividends paid | (329.3) | (147.8) | (125.3) |
Payments for purchases of treasury stock | (51.5) | 0 | 0 |
Payments on debt and borrowings | (509.1) | (1,006.6) | (918.9) |
Proceeds on debt and borrowings | 7 | 0 | 1.5 |
Net proceeds from (payments on) revolving credit facilities and commercial paper | (3.7) | 1.4 | 0 |
Other | (6) | (23.8) | (31.8) |
Net cash provided by (used in) financing activities | (889.5) | (1,172.2) | (1,070.4) |
Effect of foreign exchange rate changes on cash and cash equivalents | (24.8) | (24.1) | 35 |
Net increase (decrease) in cash and cash equivalents | (37.4) | (132.7) | 246.7 |
Balance at beginning of year | 637.4 | 770.1 | 523.4 |
Balance at end of year | $ 600 | $ 637.4 | $ 770.1 |
CONSOLIDATED STATEMENTS OF STOC
CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY AND NONCONTROLLING INTERESTS - USD ($) $ in Millions | Total | Common stock Common Class A | Common stock Common Class B | Common stock Class A exchangeable shares | Common stock Class B exchangeable shares | Paid-in capital | Retained earnings | Accumulated other comprehensive income (loss) | Common stock held in treasury, Class B | Noncontrolling interests |
Beginning balance at Dec. 31, 2019 | $ 13,673.1 | $ 0 | $ 2.1 | $ 102.5 | $ 557.8 | $ 6,773.6 | $ 7,617 | $ (1,162.2) | $ (471.4) | $ 253.7 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||||
Exchange of shares | 0 | (0.2) | (140) | 140.2 | ||||||
Shares issued under equity compensation plan | (0.5) | (0.5) | ||||||||
Amortization of share-based compensation | 24.2 | 24.2 | ||||||||
Acquisition of business and purchase of noncontrolling interest | (0.2) | 0.3 | (0.5) | |||||||
Net income (loss) including noncontrolling interests | (945.7) | (949) | 3.3 | |||||||
Other comprehensive income (loss), net of tax | (3.4) | (5.6) | 2.2 | |||||||
Contributions from noncontrolling interests | 16.3 | 16.3 | ||||||||
Distributions and dividends to noncontrolling interests | (18.7) | (18.7) | ||||||||
Dividends declared | (123.8) | (123.8) | ||||||||
Ending balance at Dec. 31, 2020 | 12,621.3 | 0 | 2.1 | 102.3 | 417.8 | 6,937.8 | 6,544.2 | (1,167.8) | (471.4) | 256.3 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||||
Exchange of shares | 0 | (0.1) | 0 | 0.1 | ||||||
Shares issued under equity compensation plan | 0.6 | 0.6 | ||||||||
Amortization of share-based compensation | 32.1 | 32.1 | ||||||||
Acquisition of business and purchase of noncontrolling interest | (0.2) | 0.3 | (0.5) | |||||||
Net income (loss) including noncontrolling interests | 1,008.5 | 1,005.7 | 2.8 | |||||||
Other comprehensive income (loss), net of tax | 161.3 | 161.8 | (0.5) | |||||||
Contributions from noncontrolling interests | 3.2 | 3.2 | ||||||||
Distributions and dividends to noncontrolling interests | (14.3) | (14.3) | ||||||||
Dividends declared | (148.4) | (148.4) | ||||||||
Ending balance at Dec. 31, 2021 | 13,664.1 | 0 | 2.1 | 102.2 | 417.8 | 6,970.9 | 7,401.5 | (1,006) | (471.4) | 247 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||||
Exchange of shares | 0 | (4.5) | 4.5 | |||||||
Shares issued under equity compensation plan | (2.9) | (2.9) | ||||||||
Amortization of share-based compensation | 33.6 | 33.6 | ||||||||
Acquisition of business and purchase of noncontrolling interest | (1.4) | 0.3 | (1.7) | |||||||
Net income (loss) including noncontrolling interests | (186.5) | (175.3) | (11.2) | |||||||
Other comprehensive income (loss), net of tax | (201.9) | (199.5) | (2.4) | |||||||
Share repurchase program | (51.5) | (51.5) | ||||||||
Contributions from noncontrolling interests | 8.1 | 8.1 | ||||||||
Distributions and dividends to noncontrolling interests | (14.3) | (14.3) | ||||||||
Dividends declared | (332.1) | (332.1) | ||||||||
Ending balance at Dec. 31, 2022 | $ 12,915.2 | $ 0 | $ 2.1 | $ 102.2 | $ 413.3 | $ 7,006.4 | $ 6,894.1 | $ (1,205.5) | $ (522.9) | $ 225.5 |
Basis of Presentation and Summa
Basis of Presentation and Summary of Significant Accounting Policies | 12 Months Ended |
Dec. 31, 2022 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Basis of Presentation and Summary of Significant Accounting Policies | Basis of Presentation and Summary of Significant Accounting Policies Unless otherwise noted in this report, any description of "we," "us" or "our" includes Molson Coors Beverage Company ("MCBC" or the "Company"), principally a holding company, and its operating and non-operating subsidiaries included within our reporting segments. Our reporting segments include Americas and EMEA&APAC. Our Americas segment operates in the U.S., Canada and various countries in the Caribbean, Latin and South America, and our EMEA&APAC segment operates in Bulgaria, Croatia, Czech Republic, Hungary, Montenegro, the Republic of Ireland, Romania, Serbia, the U.K., various other European countries and certain countries within the Middle East, Africa and Asia Pacific. Unless otherwise indicated, information in this report is presented in USD and comparisons are to comparable prior periods, and 2022, 2021 and 2020 refers to the twelve months ended December 31, 2022, December 31, 2021 and December 31, 2020, respectively. Our primary operating currencies, other than USD, include the CAD, the GBP and our Central European operating currencies such as the EUR, CZK, HRK and RSD. Our consolidated financial statements and related disclosures reflect new accounting pronouncements adopted during the year as discussed in Note 2, "New Accounting Pronouncements." Changes to our Consolidated Statement of Operations As of December 31, 2022, we modified our presentation of the consolidated statements of operations to replace the former "Special items, net" line item with "Other operating income (expense), net." In addition, goodwill impairment, which had previously been included in "Special items, net," has been reclassified to a separate line titled "Goodwill impairment." The consolidated statement of operations for the years ended December 31, 2021 and December 31, 2020 were reclassified to reflect this change in presentation only. Cost Inflation We have been experiencing significant cost inflation, including higher material, transportation and energy costs, which negatively impacted our results of operations during the year ended December 31, 2022. We expect cost inflation to continue to have a negative impact on our results of operations in 2023 and possibly beyond. To the extent materials, transportation and energy prices continue to fluctuate, our business and financial results could continue to be materially adversely impacted. We continue to monitor these risks and rely on our risk management hedging program, increased pricing to our customers, our premiumization strategy and cost savings programs to help mitigate some of the inflationary pressures. See Part II. Item 7. Management's Discussion and Analysis, "Items Affecting Reported Results" for further discussion. For considerations of the effects of cost inflation to our goodwill and indefinite-lived intangible assets, see Note 6, "Goodwill and Intangible Assets." Coronavirus Global Pandemic We have been actively monitoring the impact of the coronavirus pandemic since it started at the end of the first quarter of 2020. The extent to which our operations will continue to be impacted by the coronavirus pandemic will depend largely on future developments, which are highly uncertain and cannot be accurately predicted, including, but not limited to, the level of governmental or societal orders or restrictions on public gatherings and on-premise venues including any vaccine mandates or testing requirements, the severity and duration of the coronavirus pandemic by market including future outbreaks of variants, changes in consumer behavior, the rate of vaccination and the efficacy of vaccines against the coronavirus and related variants. We continue to actively monitor the ongoing evolution of the coronavirus pandemic and resulting impacts to our business. At the onset of the pandemic, during the first quarter of 2020, we initiated temporary keg relief programs in many of our markets which were negatively impacted. As a result, during 2020, we recognized a reduction to net sales of $30.3 million reflecting estimated sales returns and reimbursements through these keg relief programs. Further, during 2020, we recognized charges of $12.1 million within cost of goods sold related to obsolete finished goods keg inventories that were not expected to be sold within our freshness specifications, as well as the costs to facilitate the above mentioned keg returns. Additionally, during 2020, we recorded charges of $15.5 million within cost of goods sold related to temporary "thank you" pay for certain essential Americas segment brewery employees. In response to the ongoing impacts of the coronavirus pandemic, various governmental authorities globally announced relief programs, which among other items, provided temporary deferrals of non-income based tax payments, which positively impacted our operating cash flows in 2020. These temporary net tax payment deferrals of approximately $25 million and $130 million as of December 31, 2021 and December 31, 2020, respectively, were primarily included within accounts payable and other current liabilities on our audited consolidated balance sheets. Of the $130 million of temporary net tax payment deferrals as of December 31, 2020, approximately $105 million was repaid during the year ended December 31, 2021, with approximately $25 million outstanding as of December 31, 2021. The remaining was repaid during the year ended December 31, 2022. We protected and supported our liquidity position in response to the global economic uncertainty created by the coronavirus pandemic. Beginning with the second quarter of 2020 through the second quarter of 2021, our board of directors suspended our regular quarterly dividends on our Class A and Class B common and exchangeable shares. A quarterly dividend was reinstated in the third quarter of 2021. Revitalization Plan On October 28, 2019, we initiated a revitalization plan designed to allow us to invest across our portfolio to drive long-term, sustainable success. The revitalization plan established Chicago, Illinois as our Americas segment operational headquarters. We closed our office in Denver, Colorado and consolidated certain administrative functions into our other existing office locations. As of January 1, 2020, we changed our name to Molson Coors Beverage Company and changed our management structure to two segments - Americas and EMEA&APAC. We began to incur charges related to these restructuring activities during the fourth quarter of 2019 and we recognized severance and retention charges of $4.0 million and $35.6 million during the years ended December 31, 2021 and December 31, 2020, respectively. As of December 31, 2021, the revitalization plan restructuring charges were substantially complete. See Note 17, "Other Operating Income (Expense), net" for further discussion of the impacts of this plan. Government Assistance We receive government assistance in the form of tax credits and grants, including tax credits from government agencies in certain jurisdictions around job creation and retention, as well as capital investment initiatives. This includes, but is not limited to, refundable and non-refundable property and income tax credits in various state and other local jurisdictions. We recognize amounts received from government assistance programs, including tax credits and grants, as a reduction to MG&A expenses in our consolidated financial statements, when it is probable we will receive the funds and have met the conditions, if any, required by the government assistance program. If we receive the government assistance at a point in time for services to be completed over time, the cash received is initially recorded in our consolidated balance sheet as other liabilities, and amortized as an offset to MG&A expenses over the service period of the agreement. No programs are individually material nor are the programs material in the aggregate. Principles of Consolidation Our consolidated financial statements include our accounts and our majority-owned and controlled domestic and foreign subsidiaries, as well as certain VIEs for which we are the primary beneficiary. All intercompany accounts and transactions have been eliminated in consolidation. Use of Estimates Our consolidated financial statements are prepared in accordance with U.S. GAAP. These accounting principles require us to make certain estimates, judgments and assumptions. We believe that the estimates, judgments and assumptions used to determine certain amounts that affect the financial statements are reasonable, based on information available at the time they are made. To the extent there are differences between these estimates and actual results, our consolidated financial statements may be materially affected. Revenue Recognition Our net sales represent the sale of beer, malt beverages and other adjacencies, net of excise tax. Sales are stated net of incentives, discounts and returns. Sales of products are for cash or otherwise agreed upon credit terms. Our payment terms vary by location and customer, however, the time period between when revenue is recognized and when payment is due is not significant. Our revenue generating activities have a single performance obligation and are recognized at the point in time when control transfers and our obligation has been fulfilled, which is when the related goods are shipped or delivered to the customer, depending upon the method of distribution and shipping terms. Where our products are sold under consignment arrangements, revenue is not recognized until control has transferred, which is when the product is sold to the end customer. Revenue is measured as the amount of consideration we expect to receive in exchange for the sale of our product. The cost of various programs, such as price promotions, rebates and coupons, are treated as a reduction of sales. In certain of our markets where legally permitted, we make cash payments to customers such as slotting or listing fees, or payments for other marketing or promotional activities. These cash payments are recorded as a reduction of revenue unless we receive a distinct good or service. Specifically, a good or service is considered distinct when it is separately identifiable from other promises in the contract, we receive a benefit from the good or service and the benefit is separable from the sale of our product to the customer. Certain payments made to customers are conditional on the achievement of volume targets, marketing commitments or both. If paid in advance, we record such payments as prepayments and amortize them over the relevant period to which the customer commitment is made (generally up to five years). When the payment is not for a distinct good or service, or fair value cannot be reasonably estimated, the amortization of the prepayment or the cost as incurred is recorded as a reduction of revenue. Where a distinct good or service is received and fair value can be reasonably estimated, the cost is included as MG&A expenses. The amounts deferred are reassessed regularly for recoverability over the contract period and are impaired where there is objective evidence that the benefits will not be realized or the asset is otherwise not recoverable. Separately, as discussed below, we analyze whether these advance payments contain a significant financing component for potential adjustment to the transaction price. Our primary revenue generating activity represents the sale of beer and other malt beverages to customers, including both domestic and exported product sales. Our customer could be a distributor, retail or on-premise outlet, depending on the market. The majority of our revenues are generated from brands that we own and brew ourselves; however, we also import or brew and sell certain non-owned partner brands under licensing and related arrangements. In addition, primarily in the U.K., we sell other beverage companies' products to on-premise customers to provide them with a full range of products for their retail outlets. We refer to this as the "factored brand business." Sales from this business are included in our net sales and cost of goods sold when ultimately sold. In the factored brand business, we normally purchase inventory, which includes excise taxes charged by the vendor, take orders from customers for such brands, negotiate with the customers on pricing and invoice customers for the product and related costs of delivery. In addition, we incur the risk of loss when we are in possession of the inventory and for the receivables due from the customers. Revenues for owned brands, partner and imported brands, as well as factored brands are recognized at the point in time when control is transferred to the customer as discussed above. Other Revenue Generating Activities We contract manufacture for other brewers in some of our markets. These contractual agreements require us to brew, package and ship certain brands for these brewers, who then sell the products to their own customers in their respective markets. Revenues under contract brewing arrangements are recognized when our obligation related to the finished product is fulfilled and control of the product transfers to these other brewers. We also have licensing agreements with third party partners who brew and distribute our products in various markets across our segments. Under these agreements, we are compensated based on the amount of products sold by our partners in these markets at an agreed upon royalty rate or profit percentage. We apply the sales-based royalty practical expedient to these licensing arrangements and recognize revenue as product is sold by our partners at the agreed upon rate. Disaggregation of Revenue We have evaluated our primary revenue generating activities under the disaggregation disclosure criteria outlined within the guidance and concluded that disclosure at the geographical segment level depicts how the nature, amount, timing and uncertainty of revenues and cash flows are affected by economic factors. We have also evaluated our other revenue generating activities and concluded that these activities are not material for separate disclosure. See Note 18, "Segment Reporting," for disclosure of revenues by geographic segment. Variable Consideration Our revenue generating activities include variable consideration which is recorded as a reduction of the transaction price based upon expected amounts at the time revenue for the corresponding product sale is recognized. For example, customer promotional discount programs are entered into with certain distributors for certain periods of time. The amount ultimately reimbursed to distributors is determined based upon agreed-upon promotional discounts which are applied to distributors' sales to retailers. Other common forms of variable consideration include volume rebates for meeting established sales targets, and coupons and mail-in rebates offered to the end consumer. The determination of the reduction of the transaction price for variable consideration requires that we make certain estimates and assumptions that affect the timing and amounts of revenue and liabilities recorded. We estimate this variable consideration, including analyzing for a potential constraint on variable consideration, by taking into account factors such as the nature of the promotional activity, historical information and current trends, availability of actual results and expectations of customer and consumer behavior. We do not have standard terms that permit return of product; however, in certain markets where returns occur we estimate the amount of returns as variable consideration based on historical return experience and adjust our revenue accordingly. Products that do not meet our high quality standards are returned by the customer or recalled and destroyed and are recorded as a reduction of revenue. The reversal of revenue is recorded upon determination that the product will be recalled and destroyed. We estimate the costs required to facilitate product returns and record them in cost of goods sold as required. For the years ended December 31, 2022, 2021 and 2020, adjustments to revenue from performance obligations satisfied in the prior period due to changes in estimates in variable consideration were immaterial. Significant Financing Component and Costs to Obtain Contracts In certain of our businesses where such practices are legally permitted, we make loans or advanced payments to retail outlets that sell our brands. For arrangements that do not span greater than one year, we apply the practical expedient available under ASC 606 and do not adjust the transaction price for the effects of a potential significant financing component. We further analyze arrangements that span greater than one year on an ongoing basis to determine whether a significant financing component exists. No such arrangements existed during the years ended December 31, 2022, 2021 and 2020. Advance payments to customers, where legally permitted, are deferred and amortized as a reduction to revenue over the expected period of benefit and tested for recoverability as appropriate. All other costs to obtain and fulfill contracts are expensed as incurred based on the nature, significance and expected benefit of these costs relative to the contract. Contract Assets and Liabilities We continually evaluate whether our revenue generating activities and advanced payment arrangements with customers result in the recognition of contract assets or liabilities. No such assets or liabilities existed as of December 31, 2022 or December 31, 2021. Separately, trade accounts receivable, including affiliate receivables, approximates receivables from contracts with customers. Shipping and Handling Freight costs billed to customers for shipping and handling are recorded as revenue. Shipping and handling expense related to costs incurred to deliver product are recognized within cost of goods sold. We account for shipping and handling activities that occur after control has transferred as a fulfillment cost as opposed to a separate performance obligation, and the costs of shipping and handling are recognized concurrently with the related revenue. Excise Taxes Excise taxes remitted to tax authorities are government-imposed excise taxes on beer. Excise taxes are shown in a separate line item in the consolidated statements of operations as a reduction of sales. In the consolidated balance sheets, excise taxes are generally recognized as a current liability within accounts payable and other current liabilities, with the liability subsequently reduced when the taxes are remitted to the tax authority. In cases where excise taxes are prepaid, they are recorded within other current assets. Cost of Goods Sold Our cost of goods sold includes costs we incur to make and ship beer and other beverages. These costs include brewing materials, such as barley, hops and various grains. Packaging materials, such as glass bottles, aluminum cans, cardboard and paperboard are also included in our cost of goods sold. Additionally, our cost of goods sold include both direct and indirect labor, shipping and handling including freight costs, utilities, maintenance costs, warehousing costs, purchasing and receiving costs, depreciation, promotional packaging, other manufacturing overheads and costs to purchase factored and other non-owned brands from suppliers, as well as the estimated cost to facilitate product returns. Marketing, General and Administrative Expenses Our MG&A expenses include marketing expenses, including the direct costs related to the selling of a product or brand, media advertising (television, radio, digital, print), tactical advertising (signs, banners, point-of-sale materials) and promotion costs on both local and national levels within our operating segments. The creative portion of our advertising activities is expensed as incurred. Production costs of advertising and promotional materials are expensed when the advertising is first run. Included in MG&A is total marketing and advertising expenses which were approximately $1.0 billion, $1.1 billion and $0.9 billion in 2022, 2021 and 2020, respectively. This classification also includes general and administrative costs for functions such as finance, legal, human resources and information technology. These costs primarily consist of labor and outside services, as well as bad debt expense related to our allowance for doubtful accounts. Unless capitalization is allowed or required by U.S. GAAP, legal costs are expensed when incurred. These costs also include our marketing and sales organizations, including labor and other overheads. This line item additionally includes amortization costs associated with intangible assets, as well as certain depreciation costs related to non-production equipment and share-based compensation. Share-based compensation is recognized using a straight-line method over the vesting period of the awards. We include estimated forfeitures expected to occur when calculating share-based compensation expense. Our share-based compensation plan and the awards within it contain provisions that accelerate vesting of awards upon change in control, retirement, disability or death of eligible employees and directors. Our share-based awards are considered vested when the employee's retention of the award is no longer contingent on providing service, which for certain awards can result in immediate recognition for awards granted to retirement-eligible individuals or accelerated recognition for awards granted to individuals that will become retirement eligible within the stated vesting period. Also, if less than the stated vesting period, we recognize these costs over the period from the grant date to the date retirement eligibility is achieved. Other Operating Income (Expense), net Our other operating income (expense) items represent charges incurred or benefits realized that we believe are significant to our current operating results warranting separate classification; specifically, such items are considered to be one of the following: • restructuring charges, including atypical employee-related charges, asset abandonment-related losses, fees on termination of significant operating agreements and other related exit or disposal charges; • intangible and tangible asset impairments, excluding goodwill; • gains and (losses) on disposal of investments; and • other significant items deemed to warrant separate classification within operating income These items classified as other operating income (expense) are not necessarily non-recurring, however, they are generally deemed to be incremental to income earned or costs incurred by us in conducting normal operations. Interest Expense, net Our interest costs are associated with borrowings to finance our operations and acquisitions. Interest earned on our cash and cash equivalents across our business is recorded as interest income. We capitalize interest cost as a part of the original cost of acquiring certain fixed assets if the cost of the capital expenditure and the expected time to complete the project are considered significant. Other Non-Operating Income (Expense), net Our other non-operating income (expense), net classification primarily includes gains and losses associated with activities not directly related to our operations. For instance, aggregate unrealized and realized foreign exchange gains and losses resulting from the remeasurement and settlement of foreign-denominated monetary assets and liabilities, as well as certain gains or losses on sales of non-operating assets and the mark-to-market activity associated with warrants and other equity securities are classified in this line item. These gains and losses are reported in the operating segment in which they occur; however, foreign exchange gains and losses on intercompany balances related to financing and other treasury-related activities remain unallocated. The initial recording of foreign-denominated transactions are classified based on the nature of the transaction, with the unrealized or realized foreign exchange gains or losses resulting from the subsequent remeasurement of the monetary asset or liability, and its ultimate settlement, classified in other non-operating income (expense), net. Income Taxes Deferred income taxes are provided for the temporary differences between the financial reporting basis and the tax basis of our assets, liabilities and certain unrecognized gains and losses recorded in AOCI. We apply the intraperiod tax allocation rules to allocate our provision for income taxes between continuing operations and other categories of earnings, such as other comprehensive income (loss), when we meet the criteria prescribed by U.S. GAAP. The tax benefit from an uncertain tax position is recognized only if it is determined that the tax position will more likely than not be sustained based on its technical merits. We measure and record the tax benefits from such a position based on the largest benefit that has a greater than 50% likelihood of being realized upon ultimate settlement. Interest, penalties and offsetting positions related to unrecognized tax benefits are recognized as a component of income tax expense with interest and penalties being recorded to the provision (benefit) for income taxes in our Consolidated Statement of Operations. We record a valuation allowance to reduce our deferred tax assets to the amount that is more likely than not to be realized. Other Comprehensive Income (Loss) OCI represents income and losses for the reporting period, including the related tax impacts, which are excluded from net income (loss) and recognized directly within AOCI as a component of equity. OCI also includes amounts reclassified to income during the reporting period that were previously recognized within AOCI. Amounts remaining within AOCI are expected to be reclassified out of AOCI in the future, at which point they will be recognized within the consolidated statement of operations as a component of net income (loss). We recognize OCI related to the translation of assets and liabilities of our foreign subsidiaries which are denominated in currencies other than the USD, unrealized gains and losses on the effective portion of our derivatives designated in cash flow hedging relationships and derivative and non-derivative instruments designated in net investment hedging relationships, actuarial gains and losses and prior service costs related to our pension and other post-retirement benefit plans, as well as our proportionate share of our equity method investments' OCI. Additionally, when we do not have the expectation or intent to cash settle certain of our intercompany note receivable and note payable positions in the foreseeable future, the remeasurement of these instruments is recorded as a component of foreign currency translation adjustments within OCI. We release stranded tax effects from AOCI using either a specific identification approach or portfolio approach based on the nature of the underlying item. Earnings Per Share Basic EPS is computed using the weighted-average number of shares of common stock outstanding during the period. Diluted EPS includes the additional dilutive effect of our potentially dilutive securities, which include RSUs, DSUs, PSUs and stock options. The dilutive effects of our potentially dilutive securities are calculated using the treasury stock method. Our calculation of weighted-average shares includes Class A common stock and Class B common stock and Class A exchangeable shares and Class B exchangeable shares. All classes of stock have in effect the same dividend rights and share equitably in undistributed earnings. Holders of Class A common stock receive dividends only to the extent dividends are declared and paid to holders of Class B common stock. See Note 14, "Stockholders' Equity" for further discussion of the Class A common stock and Class B common stock and Class A exchangeable shares and Class B exchangeable shares. We have no unvested outstanding equity share awards that contain non-forfeitable rights to dividends. Anti-dilutive securities excluded from the computation of diluted EPS for the years ended December 31, 2022, December 31, 2021 and December 31, 2020 were 3.1 million, 1.8 million and 2.7 million shares, respectively. Dividends On November 10, 2022, our Company's Board of Directors declared a cash dividend of $0.38 per share, paid on December 15, 2022, to shareholders of Class A and Class B common stock of record on December 2, 2022. Shareholders of exchangeable shares received the CAD equivalent of dividends declared on Class A and Class B common stock, equal to CAD 0.50 per share. During the year ended December 31, 2022, dividends declared to eligible shareholders totaled $1.52 per share, with the CAD equivalent totaling CAD 1.95 per share. In response to the global economic uncertainty created by the coronavirus pandemic, our Board of Directors suspended our regular quarterly dividend on our Class A and Class B common and exchangeable shares in May 2020. A quarterly dividend was reinstated during the third quarter of 2021. During the year ended December 31, 2021, dividends declared to eligible shareholders totaled $0.68 per share, with the CAD equivalent totaling CAD 0.84 per share. During the year ended December 31, 2020, dividends declared to eligible shareholders totaled $0.57 per share, with the CAD equivalent totaling CAD 0.75 per share. Share Repurchase Program On February 17, 2022, our Company's Board of Directors approved a share repurchase program up to an aggregate of $200 million of our Company's Class B common stock through March 31, 2026, with the program primarily intended to offset annual employee equity award grants. During the year ended December 31, 2022, we repurchased 995,000 shares under the share repurchase program at a weighted average price of $51.70 per share, including brokerage commissions, for an aggregate value of $51.5 million. Cash and Cash Equivalents Cash consists of cash on hand and bank deposits. Cash equivalents represent highly liquid investments with original maturities of three months or less. Our cash deposits are maintained with multiple, reputable financial institutions. Non-Cash Activity Non-cash investing activities includes movements in our guarantee of indebtedness of certain equity method investments of $2.3 million, $0.4 million and $0.3 million for the years ended December 31, 2022, 2021 and 2020, respectively. See Note 3, "Investments" for further discussion. We also had other non-cash activities related to capital expenditures incurred but not yet paid of $234.3 million, $206.6 million and $171.9 million during the years ended December 31, 2022, 2021 and 2020, respectively. In addition, we had non-cash activities related to our non-cash issuances of share-based awards. See Note 16, "Share-Based Payments" for further details. In June 2021, we rolled forward our July 2021 $250.0 million forward starting interest rate swap to May 2022 through a cashless settlement. The unrealized loss on the 2021 forward starting interest rate swap at the time of the transaction was factored into the effective interest rate assigned to the new May 2022 forward starting interest rate swap. See Note 10, "Derivative Instruments and Hedging Activities" for further details. As of December 31, 2022, we had a recorded non-cash transaction related to the establishment of an accrued liability of $56.6 million as the best estimate of the probable loss in the Keystone litigation case based on the jury verdict including associated interest. See Note 13, "Commitments and Contingencies" for further details. Other than the activity mentioned above and the supplemental non-cash activity related to the recognition of leases discussed in Note 8, "Leases," there was no other significant non-cash activity in 2022, 2021 and 2020. Accounts Receivable and Notes Receivable We record accounts and notes receivable at net realizable value. This carrying value includes an appropriate allowance for estimated uncollectible amounts to reflect any loss anticipated on the accounts and notes receivable balances. We calculate this allowance based on our country-specific history of write-offs, level of past-due accounts based on the contractual terms of the receivables and our relationships with and the economic status of our customers, which may be impacted by current macroeconomic and regulatory factors specific to the country of origin. This methodology takes into consideration historical los |
New Accounting Pronouncements
New Accounting Pronouncements | 12 Months Ended |
Dec. 31, 2022 | |
Accounting Standards Update and Change in Accounting Principle [Abstract] | |
New Accounting Pronouncements | New Accounting Pronouncements New Accounting Pronouncements Recently Adopted In March 2020, the FASB issued authoritative guidance which provides optional expedients and exceptions for applying U.S. GAAP to contracts, hedging relationships and other transactions affected by reference rate reform if certain criteria are met. The amendments apply only to contracts, hedging relationships and other transactions that reference LIBOR or another reference rate expected to be discontinued because of reference rate reform and was effective for all entities upon issuance on March 12, 2020 through December 31, 2022. Accounting Standards Update ("ASU") 2022-06, Reference Rate Reform (Topic 848): Deferral of the Sunset Date of Topic 848 , defers the expiration date of Topic 848 to December 31, 2024 to realign with the revised cessation date for LIBOR. The guidance permits a company to elect certain optional expedients and exceptions when affected by the changes in reference rate reform. We have elected to adopt optional expedients impacting our derivative instruments with maturity dates extending beyond the expected discontinuance date of LIBOR. In addition, in October 2021, we amended our revolving credit facility to replace LIBOR with designated replacement rates for any future borrowings denominated in EUR or GBP. The partial adoption of, and future elections under ASU 2020-04, Reference Rate Reform (Topic 848): Facilitation of the Effects of Reference Rate Reform on Financial Reporting , and ASU 2021-01, Reference Rate Reform (Topic 848): Scope , did not and are not expected to have a material impact on our accounting policies or consolidated financial statements. We will continue to evaluate the impact of reference rate reform on our other contracts and assess the impacts of adopting incremental portions of this guidance on our financial statements. In November 2021, the FASB issued authoritative guidance intended to provide consistent and transparent disclosures around government assistance by requiring disclosures of the type of government assistance, our method of accounting for the government assistance and the effect on our financial statements. We adopted this guidance in our annual report for the year ended December 31, 2022. None of the programs in which we receive government assistance are individually material nor are they material in the aggregate. See Note 1, "Basis of Presentation and Summary of Significant Accounting Policies" for additional information on our government assistance. New Accounting Pronouncements Not Yet Adopted In September 2022, the FASB issued authoritative guidance intended to provide consistent and transparent disclosures for a buyer in a supplier finance program by requiring disclosures of key program terms, the amount of obligations that have been confirmed as valid with the finance provider that are deemed outstanding as of the end of the period, a description of the financial line item in which this unpaid balance resides and a rollforward of the obligations including the amount of obligations confirmed and paid. This guidance, with the exception of the rollforward disclosure requirement, is effective for us starting with the first quarter of 2023 and is required to be applied retrospectively. The rollforward disclosure requirement is effective for us in our annual report for the year ending December 31, 2024 and is required to be applied prospectively. While early adoption of this guidance is permitted, we plan to adopt as required with all information except for the rollforward disclosure requirement to be disclosed starting with the first quarter of 2023. We expect the guidance to have an impact on disclosures only as the guidance does not impact recognition or measurement of such programs. |
Investments
Investments | 12 Months Ended |
Dec. 31, 2022 | |
Equity Method Investments and Joint Ventures [Abstract] | |
Investments | Investments Our investments include both equity method and consolidated investments. Those entities identified as VIEs have been evaluated to determine whether we are the primary beneficiary. The VIEs included under "Consolidated VIEs" below are those for which we have concluded that we are the primary beneficiary and accordingly, we have consolidated these entities. Our consolidated VIEs held $5.0 million of debt as of December 31, 2022 and none as of December 31, 2021. We have not provided any financial support to any of our VIEs during 2022 that we were not previously contractually obligated to provide. Amounts due to and due from our equity method investments are recorded as affiliate accounts payable and affiliate accounts receivable. See below under "Affiliate Transactions" for further details. Authoritative guidance related to the consolidation of VIEs requires that we continually reassess whether we are the primary beneficiary of VIEs in which we have an interest. As such, the conclusion regarding the primary beneficiary status is subject to change and we continually evaluate circumstances that could require consolidation or deconsolidation. Our consolidated VIEs are Cobra Beer Partnership, Ltd. ("Cobra U.K."), RMMC, RMBC and Truss, as well as other immaterial entities. Our unconsolidated VIEs are BRI, BDL and TYC, as well as other immaterial investments. Both BRI and BDL have outstanding third party debt which is guaranteed by their respective shareholders. As a result, we have a guarantee liability of $33.3 million and $38.1 million recorded as of December 31, 2022 and December 31, 2021, respectively, which is presented within accounts payable and other current liabilities on the consolidated balance sheets and represents our proportionate share of the outstanding balance of these debt instruments. The carrying value of the guarantee liability equals fair value, which considers an adjustment for our own non-performance risk and is considered a Level 2 measurement. The offset to the guarantee liability was recorded as an adjustment to our respective equity method investment within the consolidated balance sheets. The resulting change in our equity method investments during the year due to movements in the guarantee represents a non-cash investing activity. Equity Method Investments BRI BRI is a beer distribution and retail network for the Ontario region of Canada, with majority of the ownership residing with Molson Canada 2005, Labatt Breweries of Canada LP (a subsidiary of ABI) and Sleeman Breweries Ltd. (a subsidiary of Sapporo International). BRI charges its owners administrative fees that are designed so the entity operates on a cash neutral basis. This administrative fee is based on costs incurred, net of other revenues earned, and is allocated in accordance with the operating agreement to its owners based on volume of products. Contractual provisions cause participation in governance and other interests to fluctuate based on this calculated market share requiring frequent primary beneficiary evaluations. However, based on the existing structure, control is shared, and remains shared through such changes, and therefore we do not anticipate becoming the primary beneficiary in the foreseeable future. We consider BRI an affiliate. We have an obligation to proportionately fund BRI's operations. As a result of this obligation, we continue to record our proportional share of BRI's net income or loss and OCI activity, including when we have a negative equity method balance. As of December 31, 2022 and December 31, 2021, we had a positive equity method investment balance of $54.3 million and $43.9 million, respectively. See "Affiliate Transactions" below for BRI affiliate due to and due from balances as of December 31, 2022 and December 31, 2021, respectively, related to trade receivables and payables for sales to external customers and costs incurred by BRI offset by administrative fees charged and paid by MCBC (which may be in a payable or receivable position depending on the amount under or over charged). BDL BDL is a distribution operation owned by Molson Canada 2005 and Labatt Breweries of Canada LP (a subsidiary of ABI) that, pursuant to an operating agreement, acts as an agent for the distribution of their products in the western provinces of Canada. The two owners share equal voting control of this business. We consider BDL an affiliate. BDL charges the owners administrative fees that are designed so the entity operates at break-even profit levels. This administrative fee is based on costs incurred, net of other revenues earned, and is allocated in accordance with the operating agreement to the owners based on volume of products. Our investment in BDL was $30.9 million and $33.2 million as of December 31, 2022 and December 31, 2021, respectively. See "Affiliate Transactions" section below for BDL affiliate due to and due from balances as of December 31, 2022 and December 31, 2021, respectively, related to trade receivables and payables for sales to external customers and costs incurred by BDL offset by administrative fees charged and paid by MCBC (which may be in a payable or receivable position depending on the amount under or over charged). Other In the third quarter of 2020, we formed TYC, a joint venture equally owned by MCBC and DGY West that, pursuant to an operating agreement, was formed to expand commercialization of Yuengling's brands for any new market expansion outside of Yuengling's then 22-state footprint and New England in the U.S. During the third quarter of 2021, TYC commenced retail operations with its first product sales in the state of Texas and in the fourth quarter of 2022, TYC announced that it will expand into three new markets consisting of Kansas, Oklahoma and Missouri. We have concluded that TYC is a VIE for which we are not the primary beneficiary and therefore is accounted for as an equity method investment. We have certain other immaterial equity investments we enter into from time to time that align with our organizational strategies and growth initiatives. Our equity method investments are not considered significant for disclosure of financial information on either an individual or aggregated basis and there were no significant undistributed earnings as of December 31, 2022 or December 31, 2021, for any of these companies. Affiliate Transactions Amounts due from and due to affiliates as of December 31, 2022 and December 31, 2021, respectively, are as follows: Amounts due from affiliates Amounts due to affiliates December 31, 2022 December 31, 2021 December 31, 2022 December 31, 2021 (In millions) BRI $ 4.7 $ 3.3 $ (0.3) $ 0.4 BDL 0.2 6.2 — 3.1 Other 5.4 6.7 1.3 0.6 Total $ 10.3 $ 16.2 $ 1.0 $ 4.1 Consolidated VIEs Rocky Mountain Metal Container RMMC, a Colorado limited liability company, is a joint venture with Ball Corporation in which we hold a 50% interest. Our U.S. business has a can and end supply agreement with RMMC. Under this agreement, we purchase substantially all of the output of RMMC. RMMC manufactures cans and ends at our facilities, which RMMC is operating under a use and license agreement. As RMMC is a limited liability company (“LLC”), the tax consequences flow to the joint venture partners. Rocky Mountain Bottle Company RMBC, a Colorado limited liability company, is a joint venture with Owens-Brockway Glass Container, Inc in which we hold a 50% interest. Our U.S. business has a supply agreement with RMBC under which we agree to purchase output approximating the agreed upon annual plant capacity of RMBC. RMBC manufactures bottles at our facilities, which RMBC is operating under a lease agreement. As RMBC is an LLC, the tax consequences flow to the joint venture partners. Cobra U.K. We hold a 50.1% interest in Cobra U.K., which owns the worldwide rights to the Cobra beer brand (with the exception of the Indian sub-continent, owned by Cobra India). The noncontrolling interest is held by the founder of the Cobra beer brand. We consolidate the results and financial position of Cobra U.K., and it is reported within our EMEA&APAC segment. Truss Truss is a joint venture with HEXO, created to pursue opportunities to develop, produce and market non-alcoholic, cannabis-infused beverages in Canada. Truss is structured as a standalone company with its own board of directors and an independent management team. We maintain a 57.5% controlling interest in Truss, which is a VIE that is consolidated. Truss subleased the location of its production facility in Belleville, Ontario from HEXO for a portion of the year ended December 31, 2022 and directly from a third party landlord for the remaining portion of the year. The following summarizes the assets and liabilities of our consolidated VIEs (including noncontrolling interests): As of December 31, 2022 December 31, 2021 Total Assets Total Liabilities Total Assets Total Liabilities (In millions) RMMC/RMBC $ 228.2 $ 21.2 $ 204.9 $ 19.1 Other $ 43.3 $ 16.1 $ 70.8 $ 14.8 |
Inventories
Inventories | 12 Months Ended |
Dec. 31, 2022 | |
Inventory Disclosure [Abstract] | |
Inventories | Inventories As of December 31, 2022 December 31, 2021 (In millions) Finished goods $ 269.1 $ 351.5 Work in process 71.9 71.8 Raw materials 290.4 271.2 Packaging materials 161.5 110.2 Inventories, net $ 792.9 $ 804.7 |
Properties
Properties | 12 Months Ended |
Dec. 31, 2022 | |
Property, Plant and Equipment [Abstract] | |
Properties | Properties As of December 31, 2022 December 31, 2021 (In millions) Land and improvements $ 355.9 $ 355.9 Buildings and improvements 1,205.5 1,225.1 Production and office equipment 4,897.3 4,858.5 Software 533.3 507.1 Construction in progress 497.4 335.2 Other 395.3 417.8 Total properties cost 7,884.7 7,699.6 Less: accumulated depreciation (3,661.9) (3,507.2) Properties, net $ 4,222.8 $ 4,192.4 As of December 31, 2022, we modified the presentation of the subcategories of properties. The presentation of the subcategories of properties as of December 31, 2021 have been reclassified to conform to the presentation used as of December 31, 2022. |
Goodwill and Intangible Assets
Goodwill and Intangible Assets | 12 Months Ended |
Dec. 31, 2022 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill and Intangible Assets | Goodwill and Intangible Assets The changes in the gross carrying value of goodwill and accumulated impairment losses are presented in the table below by segment. Americas EMEA&APAC (1) Consolidated (In millions) Gross carrying value of goodwill $ 6,846.4 $ 1,569.1 $ 8,415.5 Accumulated impairment losses (695.4) (1,569.1) (2,264.5) Balance as of December 31, 2020 $ 6,151.0 $ — $ 6,151.0 Foreign currency translation, net 1.6 — 1.6 Gross carrying value of goodwill 6,852.9 1,517.2 8,370.1 Accumulated impairment losses (700.3) (1,517.2) (2,217.5) Balance as of December 31, 2021 $ 6,152.6 $ — $ 6,152.6 Impairments (845.0) — (845.0) Foreign currency translation, net (15.7) — (15.7) Gross carrying value of goodwill 6,790.4 1,387.6 8,178.0 Accumulated impairment losses (1,498.5) (1,387.6) (2,886.1) Balance as of December 31, 2022 $ 5,291.9 $ — $ 5,291.9 (1) The EMEA&APAC goodwill balance was fully impaired during the year ended December 31, 2020. Subsequent changes in the gross carrying value of goodwill and accumulated impairment loss balances are due to fluctuations in foreign exchange rates, which are presented net in the table above, as well as an immaterial write-off related to the disposal of our India entity in 2022. The following table presents details of our intangible assets, other than goodwill, as of December 31, 2022: Useful life Gross Accumulated Net (Years) (In millions) Intangible assets subject to amortization Brands 10 - 50 $ 4,861.1 $ (1,416.7) $ 3,444.4 License agreements and distribution rights 15 - 20 200.0 (108.0) 92.0 Other 5 - 40 88.8 (27.7) 61.1 Intangible assets not subject to amortization Brands Indefinite 8,148.6 — 8,148.6 Distribution networks Indefinite 746.4 — 746.4 Other Indefinite 307.6 — 307.6 Total $ 14,352.5 $ (1,552.4) $ 12,800.1 The following table presents details of our intangible assets, other than goodwill, as of December 31, 2021: Useful life Gross Accumulated Net (Years) (In millions) Intangible assets subject to amortization Brands 10 - 50 $ 5,081.8 $ (1,267.1) $ 3,814.7 License agreements and distribution rights 15 - 20 206.8 (107.2) 99.6 Other 3 - 40 98.5 (32.0) 66.5 Intangible assets not subject to amortization Brands Indefinite 8,197.9 — 8,197.9 Distribution networks Indefinite 800.5 — 800.5 Other Indefinite 307.6 — 307.6 Total $ 14,693.1 $ (1,406.3) $ 13,286.8 The changes in the gross carrying amounts of intangible assets from December 31, 2021 to December 31, 2022 are primarily due to the impact of foreign exchange rates, as a significant amount of intangible assets are denominated in foreign currencies. Based on foreign exchange rates as of December 31, 2022, the estimated future amortization expense of intangible assets is as follows: Year Amount (In millions) 2023 $ 204.1 2024 $ 202.7 2025 $ 202.7 2026 $ 184.2 2027 $ 119.8 Amortization expense of intangible assets was $208.1 million, $218.0 million and $220.0 million for the years ended December 31, 2022, December 31, 2021 and December 31, 2020, respectively. This expense is primarily presented within MG&A in our consolidated statements of operations. Annual 2022 Impairment Assessment We completed our required annual goodwill and indefinite-lived intangible asset impairment testing as of October 1, 2022, the first day of our fourth quarter, using a combination of a discounted cash flow analysis and market approach in the determination of fair value and concluded that the carrying value of the Americas reporting unit was in excess of its fair value amount such that an impairment loss of $845.0 million was recorded to the "Goodwill impairment" line item on the consolidated statements of operations. Due to the partial impairment of the Americas reporting unit goodwill, the remaining goodwill balance related to this reporting unit is still considered to be at risk for future impairments as further discussed below. Prior to the quantitative goodwill impairment test, we tested the recoverability of the indefinite-lived and definite-lived intangible assets and other long-lived assets within our Americas reporting unit and concluded no impairments were noted. The decline in the fair value of the Americas reporting unit in the current year was largely impacted by macroeconomic factors including an increase to the discount rate as a result of the recent rising interest rate environment as well as reductions in management forecasts and expectations due primarily to cost inflation pressures in the near to medium term and a softening beer market in certain markets in which we operate. Specifically, the discount rate used in developing our annual fair value estimates for the Americas reporting unit in the current year was 8.75% based on market-specific factors as compared to 8.25% used as of the October 1, 2021 annual testing date. Due to the partial impairment charge, the reporting unit is still considered to be at risk of future impairment. We continue to focus on building on the strength of our iconic core brands, growing our above premium portfolio and expanding beyond the beer aisle. While progress has been made on this strategy, including the increasing proportion of our above premium portfolio over the last several years and the strengthening of our core brands, the growth targets included in management’s forecasted future cash flows are inherently at risk given that the strategies are still in progress. In addition, these growth targets have been adjusted to align with current expectations of the beer industry environment and broader macroeconomic conditions such as cost inflation for certain inputs, which could continue to put pressure on achieving key margin and cash flow projections into the future. Additionally, the fair value determinations are sensitive to further unfavorable changes in forecasted cash flows, macroeconomic conditions, market multiples or discount rates that could negatively impact future analyses, including the ongoing impacts of cost inflation, further increases to interest rates, and other external industry factors impacting our business. The key assumptions used to derive the estimated fair values of our reporting units represent Level 3 measurements. Indefinite-Lived Intangible Assets The fair value of the Coors brands in the Americas, the Miller brands in the U.S., the Carling brands in the U.K. and Staropramen brands in EMEA&APAC all exceed their respective carrying values by over 15.0% as of the annual testing date and therefore are not considered at risk for potential future impairment. We utilized Level 3 fair value measurements in our impairment analysis of our indefinite-lived intangible assets. An excess earnings approach is used to determine the fair values of these assets as of the testing date. The future cash flows used in the analysis are based on internal cash flow projections based on our long range plans and include significant assumptions by management as noted below. Separately, we performed a qualitative assessment of our water rights indefinite-lived intangible assets in the U.S. to determine whether it was more likely than not that the fair values of these assets were greater than their respective carrying amounts. Based on this qualitative assessment, we determined that a full quantitative analysis was not necessary. Key Assumptions Fair value determinations require considerable judgment and are sensitive to changes in underlying assumptions and factors. As a result, there can be no assurance that the estimates and assumptions made for purposes of the goodwill and indefinite-lived intangible asset impairment tests will prove to be an accurate prediction of the future, and if our assumptions are not realized, it is possible that impairment charges may need to be recorded in the future. Examples of events or circumstances that could reasonably be expected to negatively affect the underlying key assumptions and ultimately impact the estimated fair value of our reporting units and indefinite-lived intangible assets may include such items as: (i) a decrease in expected future cash flows, specifically, an inability to execute on our strategic initiatives or increase in costs driven by inflation or other factors that could significantly impact our immediate and long range results, a prolonged weakness in consumer demand or other competitive pressures adversely affecting our long-term volume trends, a continuation of the trend away from core brands in certain of our markets, especially in markets where our core brands represent a significant portion of the market, unfavorable working capital changes and an inability to successfully achieve our cost savings targets, (ii) adverse changes in macroeconomic conditions or an economic recovery that significantly differs from our assumptions in timing and/or degree (such as a global pandemic or recession), (iii) significant unfavorable changes in tax rates (iv) volatility in the equity and debt markets or other country specific factors which could result in a higher weighted-average cost of capital, (v) sensitivity to market multiples; and (vi) regulation limiting or banning the manufacturing, distribution or sale of alcoholic beverages. Based on known facts and circumstances, we evaluate and consider recent events and uncertain items, as well as related potential implications, as part of our annual assessment and incorporate them into the analyses as appropriate. These facts and circumstances are subject to change and may impact future analyses. For example, we continue to monitor the challenges within the beer industry for further weakening or additional systemic structural declines, as well as for adverse changes in macroeconomic conditions such as cost inflation and the lingering coronavirus pandemic and the potential impacts either may have on our immediate or long range results. We also continuously monitor the market inputs used in calculating our discount rates, including risk-free rates, equity premiums and our cost of debt, which could result in a meaningful change to our weighted-average cost of capital calculation, as well as the market multiples used in our impairment assessment. Substantial changes in any of these inputs could lead to a material impairment. Furthermore, increased volatility in the equity and debt markets or other country specific factors, including, but not limited to, extended or future government intervention in response to inflation or the pandemic, could also result in a meaningful change to our weighted-average cost of capital calculation and other inputs used in our impairment assessment. Annual 2021 Impairment Assessment We completed our required annual goodwill and indefinite-lived intangible asset impairment analysis as of October 1, 2021 and concluded that the fair value of the Americas reporting unit was determined to be in excess of its carrying amount and no goodwill impairment charge was required. While the Americas reporting unit did not have an impairment of goodwill, it was considered to be at risk for future impairments with only 6% cushion of fair value in excess of carrying value. We also evaluated the indefinite-lived and definite-lived intangible assets within our Americas and EMEA&APAC reporting unit and concluded no impairments were required for our indefinite-lived assets or definite-lived intangible assets. Definite-Lived Intangible Assets and Other Long-Lived Assets Regarding definite-lived assets, we continuously monitor the performance of the underlying assets for potential triggering events suggesting an impairment review should be performed. As noted above, we tested the recoverability of the indefinite-lived and definite-lived intangible assets and other long-lived assets within our Americas reporting unit prior to the annual quantitative goodwill impairment test, with no impairment noted. During the first quarter of 2022, we identified a triggering event related to the Truss joint venture asset group within our Americas segment and recognized an impairment loss of $28.6 million, of which $12.1 million was attributable to the noncontrolling interest. The asset group was measured at fair value primarily using a market approach with Level 3 inputs. See Note 17, "Other Operating Income (Expense), net" for further details on impairment losses recorded. No other material triggering events were identified in either 2022 or 2021 related to definite-lived intangible assets or other long-lived assets. |
Accounts Payable and Other Curr
Accounts Payable and Other Current Liabilities | 12 Months Ended |
Dec. 31, 2022 | |
Payables and Accruals [Abstract] | |
Accounts Payable and Other Current Liabilities | Accounts Payable and Other Current Liabilities As of December 31, 2022 December 31, 2021 (In millions) Accounts payable and accrued trade payables $ 2,068.2 $ 2,098.1 Accrued compensation 249.2 243.7 Accrued excise and other non-income related taxes 239.9 242.6 Accrued interest 87.6 91.4 Returnable container deposit liabilities 116.8 114.9 Operating leases 44.7 45.4 Other (1) 171.9 271.2 Accounts payable and other current liabilities $ 2,978.3 $ 3,107.3 |
Leases
Leases | 12 Months Ended |
Dec. 31, 2022 | |
Leases [Abstract] | |
Leases | Leases For the years ended December 31, 2022, December 31, 2021 and December 31, 2020, lease expense (including immaterial short-term and variable lease costs) was as follows. For the years ended December 31, 2022 December 31, 2021 December 31, 2020 (In millions) Operating lease expense $ 72.5 $ 73.2 $ 71.4 Finance lease expense 9.5 10.4 11.5 Total lease expense $ 82.0 $ 83.6 $ 82.9 Supplemental cash flow information related to leases for the years ended December 31, 2022, December 31, 2021 and December 31, 2020 was as follows. For the years ended December 31, 2022 December 31, 2021 December 31, 2020 (In millions) Cash paid for amounts included in the measurements of lease liabilities Operating cash flows for operating leases $ 52.5 $ 56.8 $ 53.2 Operating cash flows for finance leases $ 3.6 $ 4.5 $ 7.6 Financing cash flows for finance leases $ 4.4 $ 3.6 $ 34.5 Supplemental non-cash information on right-of-use assets obtained in exchange for new lease liabilities Operating leases $ 63.9 $ 34.0 $ 28.5 Finance leases $ 3.8 $ 7.5 $ 5.4 Supplemental balance sheet information related to leases as of December 31, 2022 and December 31, 2021 was as follows: As of December 31, 2022 December 31, 2021 Balance Sheet Classification (In millions) Operating Leases Operating lease right-of-use assets Other assets $ 132.7 $ 119.1 Current operating lease liabilities Accounts payable and other current liabilities $ 44.7 $ 45.4 Non-current operating lease liabilities Other liabilities 99.3 87.8 Total operating lease liabilities $ 144.0 $ 133.2 Finance Leases Finance lease right-of-use assets Properties, net $ 50.2 $ 61.5 Current finance lease liabilities Current portion of long-term debt and short-term borrowings $ 5.3 $ 4.6 Non-current finance lease liabilities Long-term debt 56.2 62.6 Total finance lease liabilities $ 61.5 $ 67.2 The weighted-average remaining lease term and discount rate as of December 31, 2022 are as follows: Weighted-Average Remaining Lease Term (Years) Weighted-Average Discount Rate Operating leases 4.9 4.0% Finance leases 10.8 6.3% Based on foreign exchange rates as of December 31, 2022, maturities of lease liabilities were as follows: Operating Leases Finance Leases (In millions) 2023 $ 50.0 $ 8.6 2024 34.6 8.5 2025 26.6 8.1 2026 18.5 11.4 2027 8.2 5.1 Thereafter 21.1 45.1 Total lease payments $ 159.0 $ 86.8 Less: interest (15.0) (25.3) Present value of lease liabilities $ 144.0 $ 61.5 Executed leases that have not yet commenced as of December 31, 2022 are not material except for master railcar leases with total undiscounted payments of $54.6 million expected to commence in 2023. |
Leases | Leases For the years ended December 31, 2022, December 31, 2021 and December 31, 2020, lease expense (including immaterial short-term and variable lease costs) was as follows. For the years ended December 31, 2022 December 31, 2021 December 31, 2020 (In millions) Operating lease expense $ 72.5 $ 73.2 $ 71.4 Finance lease expense 9.5 10.4 11.5 Total lease expense $ 82.0 $ 83.6 $ 82.9 Supplemental cash flow information related to leases for the years ended December 31, 2022, December 31, 2021 and December 31, 2020 was as follows. For the years ended December 31, 2022 December 31, 2021 December 31, 2020 (In millions) Cash paid for amounts included in the measurements of lease liabilities Operating cash flows for operating leases $ 52.5 $ 56.8 $ 53.2 Operating cash flows for finance leases $ 3.6 $ 4.5 $ 7.6 Financing cash flows for finance leases $ 4.4 $ 3.6 $ 34.5 Supplemental non-cash information on right-of-use assets obtained in exchange for new lease liabilities Operating leases $ 63.9 $ 34.0 $ 28.5 Finance leases $ 3.8 $ 7.5 $ 5.4 Supplemental balance sheet information related to leases as of December 31, 2022 and December 31, 2021 was as follows: As of December 31, 2022 December 31, 2021 Balance Sheet Classification (In millions) Operating Leases Operating lease right-of-use assets Other assets $ 132.7 $ 119.1 Current operating lease liabilities Accounts payable and other current liabilities $ 44.7 $ 45.4 Non-current operating lease liabilities Other liabilities 99.3 87.8 Total operating lease liabilities $ 144.0 $ 133.2 Finance Leases Finance lease right-of-use assets Properties, net $ 50.2 $ 61.5 Current finance lease liabilities Current portion of long-term debt and short-term borrowings $ 5.3 $ 4.6 Non-current finance lease liabilities Long-term debt 56.2 62.6 Total finance lease liabilities $ 61.5 $ 67.2 The weighted-average remaining lease term and discount rate as of December 31, 2022 are as follows: Weighted-Average Remaining Lease Term (Years) Weighted-Average Discount Rate Operating leases 4.9 4.0% Finance leases 10.8 6.3% Based on foreign exchange rates as of December 31, 2022, maturities of lease liabilities were as follows: Operating Leases Finance Leases (In millions) 2023 $ 50.0 $ 8.6 2024 34.6 8.5 2025 26.6 8.1 2026 18.5 11.4 2027 8.2 5.1 Thereafter 21.1 45.1 Total lease payments $ 159.0 $ 86.8 Less: interest (15.0) (25.3) Present value of lease liabilities $ 144.0 $ 61.5 Executed leases that have not yet commenced as of December 31, 2022 are not material except for master railcar leases with total undiscounted payments of $54.6 million expected to commence in 2023. |
Debt
Debt | 12 Months Ended |
Dec. 31, 2022 | |
Debt Disclosure [Abstract] | |
Debt | Debt Debt Obligations As of December 31, 2022 December 31, 2021 (In millions) Long-term debt $500 million 3.5% notes due May 2022 (1)(2) $ — $ 500.9 CAD 500 million 2.84% notes due July 2023 (3)(4) 368.9 395.7 EUR 800 million 1.25% notes due July 2024 (3) 856.4 909.6 CAD 500 million 3.44% notes due July 2026 (3)(4) 368.9 395.7 $2.0 billion 3.0% notes due July 2026 (3) 2,000.0 2,000.0 $1.1 billion 5.0% notes due May 2042 (2) 1,100.0 1,100.0 $1.8 billion 4.2% notes due July 2046 (3) 1,800.0 1,800.0 Finance leases 61.5 67.2 Other 25.4 30.7 Less: unamortized debt discounts and debt issuance costs (39.7) (44.6) Total long-term debt (including current portion) 6,541.4 7,155.2 Less: current portion of long-term debt (376.2) (508.0) Total long-term debt $ 6,165.2 $ 6,647.2 Short-term borrowings Short-term borrowings (5) 20.9 6.9 Current portion of long-term debt 376.2 508.0 Current portion of long-term debt and short-term borrowings $ 397.1 $ 514.9 (1) We repaid our $500 million 3.5% USD notes upon maturity on May 1, 2022 using a combination of commercial paper borrowings and cash on hand. (2) On May 3, 2012, we issued approximately $1.9 billion of senior notes with portions maturing in 2017, 2022 and 2042. The issuance resulted in total proceeds, before expenses, of approximately $1.9 billion, net of underwriting fees and discounts of $14.7 million and $4.6 million, respectively. Approximately $1.1 billion of senior notes remained outstanding as of December 31, 2022, and the total remaining debt issuance costs capitalized in connection with these notes, including the underwriting fees and discounts, were $8.7 million and are being amortized over the term of the 2042 notes. (3) On July 7, 2016, MCBC issued approximately $5.3 billion senior notes with portions maturing from July 15, 2019 through July 15, 2046 ("2016 USD Notes"). Approximately $3.8 billion remained outstanding as of December 31, 2022. At the same time in 2016, MCBC also issued EUR 800 million senior notes maturing July 15, 2024 ("2016 EUR Notes"), and Molson Coors International L.P., completed a private placement of CAD 1.0 billion senior notes maturing July 15, 2023 and July 15, 2026 ("2016 CAD Notes"). All senior notes were issued in order to partially fund the financing of the Acquisition (2016 USD Notes, 2016 EUR Notes and 2016 CAD Notes, collectively, the "2016 Notes"). Debt issuance costs capitalized in connection with these notes including underwriting fees, discounts and other financing related costs, were $31 million as of December 31, 2022 and are being amortized over the respective and remaining terms of the 2016 Notes. (4) We entered into forward starting interest rate swap agreements to hedge interest rate volatility for a 10-year period until they were settled on September 18, 2015. We are amortizing a portion of the resulting loss from AOCI to interest expense over the remaining term of the 2016 CAD Notes, as defined above, up to the full 10-year term of the interest rate swap agreements. The amortizing loss resulted in an increase in our effective cost of borrowing compared to the stated coupon rates by 0.6% on the 2016 CAD Notes. See Note 10, "Derivative Instruments and Hedging Activities" for further details on the forward starting interest rate swaps. (5) As of December 31, 2022, we had $15.9 million in bank overdrafts and $49.7 million in bank cash related to our cross-border, cross-currency cash pool for a net positive position of $33.8 million. As of December 31, 2021, we had $3.0 million in bank overdrafts and $123.1 million in bank cash related to our cross-border, cross-currency cash pool for a net positive position of $120.1 million. The JPY facilities were early terminated in the first quarter of 2022. As of December 31, 2021, we had $3.9 million of outstanding borrowings under our JPY facilities. In addition, we have CAD, GBP and USD overdraft facilities under which we had no outstanding borrowings as of December 31, 2022 or December 31, 2021. A summary of our short-term facility availability is presented below. See Note 13, "Commitments and Contingencies" for further discussion related to letters of credit. • CAD unlimited overdraft facility at CAD Prime plus 0.50% • GBP 10 million overdraft facility at GBP base rate plus 2.25% • USD 10 million overdraft facility at USD Prime plus 5% Debt Fair Value Measurements We utilize market approaches to estimate the fair value of certain outstanding borrowings by discounting anticipated future cash flows derived from the contractual terms of the obligations and observable market interest and foreign exchange rates. As of December 31, 2022 and December 31, 2021, the fair value of our outstanding long-term debt (including current portion of long-term debt) was approximately $5.9 billion and $7.7 billion, respectively. The decline in the fair value of our debt was primarily driven by rising interest rates, lower notional outstanding and foreign currency impacts. All senior notes are valued based on significant observable inputs and classified as Level 2 in the fair value hierarchy. The carrying values of all other outstanding long-term borrowings and our short-term borrowings approximate their fair values and are also classified as Level 2 in the fair value hierarchy. Revolving Credit Facility and Commercial Paper We maintain a $1.5 billion revolving credit facility with a maturity date of July 7, 2024 that also allows us to issue a maximum aggregate amount of $1.5 billion in commercial paper or make other borrowings at any time at variable interest rates. We use this financing from time to time to leverage cash needs including debt repayments. During 2022, we utilized borrowings from this facility in order to fund the repayment of debt upon maturity, for working capital and for general purposes. We had no borrowings drawn on this revolving credit facility and no commercial paper borrowings as of December 31, 2022 and December 31, 2021. Debt Covenants Under the terms of each of our debt facilities, we must comply with certain restrictions. These include customary events of default and specified representations, warranties and covenants, as well as covenants that restrict our ability to incur certain additional priority indebtedness (certain thresholds of secured consolidated net tangible assets), certain leverage threshold percentages, create or permit liens on assets, and restrictions on mergers, acquisitions, and certain types of sale lease-back transactions. The maximum leverage ratio as of December 31, 2022 is 4.00x net debt to EBITDA (as defined in the revolving credit facility agreement), through maturity of the credit facility. As of December 31, 2022 and December 31, 2021, we were in compliance with all of these restrictions and covenants, have met such financial ratios, and have met all debt payment obligations. All of our outstanding senior notes as of December 31, 2022 rank pari-passu. As of December 31, 2022, the aggregate principal debt maturities of long-term debt and short-term borrowings, based on foreign exchange rates as of December 31, 2022, for the next 5 years are as follows: Year Amount (In millions) 2023 $ 389.8 2024 856.4 2025 — 2026 2,368.9 2027 — Thereafter 2,900.0 Total $ 6,515.1 The aggregate principal debt maturities in the table above excludes Other and Finance leases. The future maturities of finance leases are disclosed in Note 8, "Leases." Interest For the years ended December 31, 2022 December 31, 2021 December 31, 2020 (In millions) Interest incurred $ 257.4 $ 269.1 $ 282.3 Interest capitalized (6.8) (8.8) (7.7) Interest expensed $ 250.6 $ 260.3 $ 274.6 |
Derivative Instruments and Hedg
Derivative Instruments and Hedging Activities | 12 Months Ended |
Dec. 31, 2022 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Derivative Instruments and Hedging Activities | Derivative Instruments and Hedging Activities Overview and Risk Management Policies We use derivatives as part of our normal business operations to manage our exposure to fluctuations in interest rates, foreign currency, commodity price risk and for other strategic purposes related to our core business. We have established policies and procedures that govern the risk management of these exposures. Our primary objective in managing these exposures is to decrease the volatility of cash flows affected by changes in the underlying rates and prices. To achieve our objectives, we enter into a variety of financial derivatives, including foreign currency exchange, commodity, interest rate, cross currency swaps as well as options. We also enter into physical hedging agreements directly with our suppliers to manage our exposure to certain commodities. Counterparty Risk While, by policy, the counterparties to any of the financial derivatives we enter into are major institutions with investment grade credit ratings of at least A- by Standard & Poor's (or the equivalent) or A3 by Moody's, we are exposed to credit-related losses in the event of non-performance by counterparties. This credit risk is generally limited to the unrealized gains in such contracts, should any of these counterparties fail to perform as contracted. We have established a counterparty credit policy and guidelines that are monitored and reported to management to assist in managing this risk. As an additional measure, we utilize a portfolio of institutions either headquartered or operating in the same countries that we conduct our business. In calculating the fair value of our derivative balances, we also record an adjustment to recognize the risk of counterparty credit and our own non-performance risk, as appropriate. Price and Liquidity Risks We base the fair value of our derivative instruments upon market rates and prices. The volatility of these rates and prices are dependent on many factors that cannot be forecasted with reliable accuracy. The current fair values of our contracts could differ significantly from the cash settled values with our counterparties. As such, we are exposed to price risk related to unfavorable changes in the fair value of our derivative contracts. We may be forced to cash settle all or a portion of our derivative contracts before the expected settlement date upon the occurrence of certain contractual triggers including a change of control, termination event or other breach of agreement. This could have a negative impact on our liquidity. For derivative contracts that we have designated as hedging instruments, early cash settlement would result in the timing of our hedge settlement not being matched to the cash settlement of the forecasted transaction or firm commitment. We may also decide to cash settle all or a portion of our derivative contracts before the expected settlement date through negotiations with our counterparties, which could also impact our cash position. Due to the nature of our counterparty agreements, we are not able to net positions with the same counterparty across business units. Thus, in the event of default, we may be required to early settle all out-of-the-money contracts, without the benefit of netting the fair value of any in-the-money positions against this exposure. Collateral We do not receive and are not required to post collateral unless a change of control event occurs. This termination event would give either party the right to early terminate all outstanding swap transactions in the event that the other party consolidates, merges with, or transfers all or substantially all of its assets to, another entity, and the creditworthiness of the surviving entity that has assumed such party's obligations is materially weaker than that of such party . As of December 31, 2022, we did not have any collateral posted with any of our counterparties. Derivative Accounting Policies Overview Our foreign currency forwards and our forward starting interest rate swaps are designated in hedging relationships as cash flow hedges. Prior to settlements discussed below, our interest rate swaps were designated as fair value hedges and our cross currency swaps were designated as net investment hedges. In certain situations, we may execute derivatives that do not qualify for, or we do not otherwise seek, hedge accounting but are determined to be important for managing risk. For example, our commodity swaps and commodity options are not designated in hedge accounting relationships. These outstanding economic hedges are measured at fair value on our consolidated balance sheets with changes in fair value recorded in earnings. We have historically elected to apply the NPNS exemption to certain contracts, as applicable. These contracts are typically transacted with our suppliers and include risk management features that allow us to fix the price on specific volumes of purchases for specified delivery periods. We also consider whether any provisions in our contracts represent embedded derivative instruments as defined in authoritative accounting guidance and apply the appropriate accounting. Hedge Accounting Policies We formally document all relationships receiving hedge accounting treatment between hedging instruments and hedged items, as well as the risk-management objective and strategy for undertaking hedge transactions pursuant to prescribed guidance. We also formally assess effectiveness both at the hedge's inception and on an ongoing basis, specifically whether the derivatives that are used in hedging transactions have been highly effective in mitigating the risk designated as being hedged and whether those hedges may be expected to remain highly effective in future periods. Specific to net investment hedges, we have elected to use the spot-to-spot methodology to assess effectiveness. We discontinue hedge accounting prospectively when (1) the derivative is no longer highly effective in offsetting changes in the cash flows of a forecasted future transaction; (2) the derivative expires or is sold, terminated, or exercised; (3) it is no longer probable that the forecasted transaction will occur; (4) management determines that designating the derivative as a hedging instrument is no longer appropriate; or (5) management decides to cease hedge accounting. When we discontinue hedge accounting prospectively, but it continues to be probable that the forecasted transaction will occur in the originally expected period, the existing gain or loss on the derivative remains in AOCI for cash flow hedges and net investment hedges or in the carrying value of the hedged item for fair value hedges and is reclassified into earnings when the forecasted transaction affects earnings. However, if it is probable that a forecasted transaction will no longer occur by the end of the originally specified time period or within an additional two-month period of time thereafter, the gains and losses in AOCI are recognized immediately in earnings. In all situations in which hedge accounting is discontinued and the derivative remains outstanding, we carry the derivative at its fair value on the consolidated balance sheets until maturity, recognizing future changes in the fair value in current period earnings. Significant Derivative/Hedge Positions Net Investment Hedges Foreign Denominated Debt In 2016, we issued EUR 800 million senior notes maturing July 15, 2024 to partially fund the Acquisition. Concurrent with the issuance of these notes, we simultaneously designated the principals as net investment hedges of our investment in our Europe business in order to hedge a portion of the foreign currency translational impacts and, accordingly, record the changes in the carrying value due to fluctuations in the spot rate to AOCI. See Note 9, "Debt" for further discussion. Cross Currency Swaps In 2019, we entered into cross currency swap agreements having a total notional value of approximately EUR 353 million ($400 million upon execution) in order to hedge a portion of the foreign currency translational impacts of our European investment. Upon repayment of the $1.0 billion 2.1% senior notes at maturity in July 2021, we settled the associated cross currency swap resulting in a net cash payment of $12.7 million, consisting of the final loss on the cross currency swap of $17.6 million partially offset by the final interest received. The settlement of these cross currency swaps were classified as investing activities in our consolidated statement of cash flows. We had designated each of these cross currency swaps as net investment hedges and accordingly, recorded changes in fair value due to fluctuations in the spot rate to AOCI. The changes in fair value of the swaps attributable to changes other than those due to fluctuations in the spot rate were excluded from the assessment of hedge effectiveness and recorded to interest expense over the life of the hedge. Forward Starting Interest Rate Swaps During 2018, we entered into forward starting interest rate swaps with a notional amount totaling 1.5 billion with termination dates of July 2021, May 2022 and July 2026. The swaps had effective dates mirroring the terms of the forecasted debt issuances. Under the agreements, we are required to early terminate these swaps at the time we expect to issue the related forecasted debt. We have designated these contracts as cash flow hedges. As a result, the unrealized mark-to-market gains or losses are recorded to AOCI until termination at which point the realized gain or loss of these swaps at issuance of the hedged debt are reclassified from AOCI and amortized to interest expense over the term of the hedged debt. In June 2021, we early terminated our $250.0 million forward starting interest rate swap that was originally set to terminate in July 2021. This forward starting interest rate swap was rolled forward to May 2022 through a cashless settlement. The new May 2022 forward starting interest rate swap was incremental to our existing May 2022 forward starting interest rate swap that was executed in 2018, both of which were hedging our forecasted debt issuance expected to occur during 2022. In late April 2022, the forward starting interest rate swaps associated with the $500 million 3.5% notes that we repaid upon maturity on May 1, 2022 were terminated and settled. The immaterial loss on settlement of the swaps was recorded through interest expense during the second quarter of 2022. In 2015 we entered into forward starting interest rate swaps with a notional of CAD 600 million in order to manage our exposure to the volatility of the interest rates associated with the future interest payments on the forecasted CAD debt issuances, which ultimately became the 2015 Notes and a portion of the 2016 Notes. The swaps had an effective date of September 2015 and a termination date of September 2025 mirroring the terms of the initially forecasted CAD debt issuance. Under these agreements we were required to early terminate these swaps at the approximate time we issued the previously forecasted debt. We had designated these contracts as cash flow hedges and accordingly, a portion of the CAD 39.2 million ($29.5 million at settlement) loss on the forward starting interest rate swaps is being reclassified from AOCI and amortized to interest expense over the remaining term of the 2015 Notes, repaid in September 2020, and over portions of the 2016 CAD Notes up to the full 10-year term of the interest rate swap agreements. The remaining unamortized portion of the loss in AOCI as of December 31, 2022 was $10.9 million. Foreign Currency Forwards We have financial foreign exchange forward contracts in place to manage our exposure to foreign currency fluctuations. We hedge foreign currency exposure related to certain royalty agreements, exposure associated with the purchase of production inputs and imports that are denominated in currencies other than the functional entity's local currency and other foreign exchanges exposures. These contracts have been designated as cash flow hedges of forecasted foreign currency transactions. We use foreign currency forward contracts to hedge these future forecasted transactions up to a 60 month horizon. Commodity Swaps and Options We have financial commodity swap and option contracts in place to hedge changes in the prices of natural gas, aluminum, including surcharges relating to our aluminum exposures, corn, barley and diesel. These contracts allow us to swap our floating exposure to changes in these commodity prices for a fixed rate. These contracts are not designated in hedge accounting relationships. As such, changes in fair value of these derivatives are recorded in cost of goods sold in the consolidated statements of operations. We hedge forecasted purchases of natural gas, aluminum, corn and diesel each up to 60 months out in the future for use in our supply chain, in line with our risk management policy. Further, we hedge forecasted purchases of barley based on crop year and physical inventory management. For purposes of measuring segment operating performance, the unrealized changes in fair value of the swaps not designated in hedge accounting relationships are reported in Unallocated outside of the segment specific operating results until such time that the exposure we are managing is realized. At that time, we reclassify the gain or loss from Unallocated to the operating segment, allowing our operating segments to realize the economic effects of the derivative without the resulting unrealized mark-to-market volatility. Warrants In the fourth quarter of 2018, in connection with the formation of the Truss joint venture, as discussed further in Note 3, "Investments," our joint venture partner, HEXO, issued to our Canadian subsidiary warrants to purchase common shares of HEXO at any time during the three year period following the formation of the joint venture. The warrants to acquire common shares of HEXO expired unexercised on October 4, 2021. All changes in the fair value of the warrants subsequent to issuance and until expiration were recorded in other non-operating income (expense), net on the consolidated statements of operations. Derivative Fair Value Measurements We utilize market approaches to estimate the fair value of our derivative instruments by discounting anticipated future cash flows derived from the derivative's contractual terms and observable market interest, foreign exchange and commodity rates. The fair values of our derivatives also include credit risk adjustments to account for our counterparties' credit risk, as well as our own non-performance risk, as appropriate. The tables below summarize our derivative assets and (liabilities) that were measured at fair value as of December 31, 2022 and December 31, 2021. See Note 1, "Basis of Presentation and Summary of Significant Accounting Policies" for further discussion related to measuring the fair value of derivative instruments. Fair Value Measurements as of Total as of Quoted prices Significant Significant (In millions) Interest rate swaps $ 40.0 $ — $ 40.0 $ — Foreign currency forwards 7.6 — 7.6 — Commodity swaps and options 69.0 — 69.0 — Total $ 116.6 $ — $ 116.6 $ — Fair Value Measurements as of December 31, 2021 Total as of December 31, 2021 Quoted prices Significant Significant (In millions) Interest rate swaps (170.8) — (170.8) — Foreign currency forwards (1.5) — (1.5) — Commodity swaps and options 300.9 — 300.9 — Total $ 128.6 $ — $ 128.6 $ — As of December 31, 2022 and December 31, 2021, we had no significant transfers between Level 1 and Level 2. New derivative contracts tran sacted during 2022 were all included in Level 2. Results of Period Derivative Activity The following tables include the year-to-date results of our derivative activity in our consolidated balance sheets as of December 31, 2022 and December 31, 2021, and our consolidated statements of operations for the years ended December 31, 2022, December 31, 2021 and December 31, 2020. Fair Value of Derivative Instruments in the Consolidated Balance Sheets (in millions) December 31, 2022 Asset derivatives Liability derivatives Notional amount Balance sheet location Fair value Balance sheet location Fair value Derivatives designated as hedging instruments: Interest rate swaps $ 1,000.0 Other non-current assets 40.0 Other liabilities — Foreign currency forwards $ 176.6 Other current assets 6.2 Accounts payable and other current liabilities (0.1) Other non-current assets 1.6 Other liabilities (0.1) Total derivatives designated as hedging instruments $ 47.8 $ (0.2) Derivatives not designated as hedging instruments: Commodity swaps (1) $ 525.2 Other current assets $ 86.1 Accounts payable and other current liabilities $ (14.1) Other non-current assets 7.4 Other liabilities (10.4) Commodity options (1) $ 19.7 Other current assets 0.8 Accounts payable and other current liabilities (0.8) Total derivatives not designated as hedging instruments $ 94.3 $ (25.3) December 31, 2021 Asset derivatives Liability derivatives Notional amount Balance sheet location Fair value Balance sheet location Fair value Derivatives designated as hedging instruments: Interest rate swaps $ 1,500.0 Other current assets $ — Accounts payable and other current liabilities $ (67.7) Other non-current assets — Other liabilities (103.1) Foreign currency forwards $ 170.8 Other current assets 0.5 Accounts payable and other current liabilities (2.4) Other non-current assets 0.6 Other liabilities (0.2) Total derivatives designated as hedging instruments $ 1.1 $ (173.4) Derivatives not designated as hedging instruments: Commodity swaps (1) $ 722.1 Other current assets $ 225.1 Accounts payable and other current liabilities $ (1.1) Other non-current assets 77.1 Other liabilities (0.3) Commodity options (1) $ 68.2 Other current assets 1.0 Accounts payable and other current liabilities (0.9) Total derivatives not designated as hedging instruments $ 303.2 $ (2.3) (1) Notional includes offsetting buy and sell positions, shown in terms of absolute value. Buy and sell positions are shown gross in the asset and/or liability position, as appropriate. The Pretax Effect of Cash Flow Hedge Accounting on Other Comprehensive Income (Loss), Accumulated Other Comprehensive Income (Loss), and Income (Loss) (in millions): Derivatives in cash flow hedge relationships Amount of gain Location of gain (loss) Amount of gain For the year ended December 31, 2022 Forward starting interest rate swaps $ 198.9 Interest income (expense), net $ (14.3) Foreign currency forwards 10.8 Cost of goods sold 1.8 Other non-operating income (expense), net (0.4) Total $ 209.7 $ (12.9) For the year ended December 31, 2021 Forward starting interest rate swaps $ 50.7 Interest income (expense), net $ (4.8) Foreign currency forwards 0.4 Cost of goods sold (3.5) Other non-operating income (expense), net 0.8 Total $ 51.1 $ (7.5) For the year ended December 31, 2020 Forward starting interest rate swaps $ (110.0) Interest income (expense), net $ (2.9) Foreign currency forwards (3.5) Cost of goods sold 4.6 Other non-operating income (expense), net (1.2) Total $ (113.5) $ 0.5 The Pretax Effect of Net Investment Hedge Accounting on Other Comprehensive Income (Loss), Accumulated Other Comprehensive Income (Loss) and Income (Loss) (in millions) Net investment hedge relationships Amount of gain Location of gain (loss) recognized in income (amount excluded from effectiveness testing) Amount of gain (loss) recognized in income (amount excluded from effectiveness testing)(1) For the year ended December 31, 2022 EUR 800 million notes due 2024 53.2 Other non-operating income (expense), net — Total $ 53.2 $ — For the year ended December 31, 2021 Cross currency swaps $ 8.8 Interest income (expense), net $ 6.1 EUR 800 million notes due 2024 67.7 Other non-operating income (expense), net — Total $ 76.5 $ 6.1 For the year ended December 31, 2020 Cross currency swaps $ (33.2) Interest income (expense), net $ 14.2 EUR 800 million notes due 2024 (80.3) Other non-operating income (expense), net — Total $ (113.5) $ 14.2 (1) Represents amounts excluded from the assessment of effectiveness for which the difference between changes in fair value and period amortization is recorded in other comprehensive income. The cumulative translation adjustments related to our net investment hedges remain in AOCI until the respective underlying net investment is sold or liquidated. During the years ended December 31, 2022, December 31, 2021 and December 31, 2020, respectively, we did not reclassify any amounts related to net investment hedges from AOCI into earnings. We expect net gains o f approximately $2 million (pretax) recorded in AOCI as of December 31, 2022 will be reclassified into earnings within the next 12 months. For derivatives designated in cash flow hedge relationships, the maximum length of time over which forecasted transactions are hedged as of December 31, 2022 is approximately 3 years, as well as those related to our forecasted debt issuances in 2026. The Effect of Derivatives Not Designated as Hedging Instruments on the Consolidated Statements of Operations (in millions): Derivatives not in hedging relationship Location of gain (loss) recognized Amount of gain (loss) recognized For the year ended December 31, 2022 Commodity swaps Cost of goods sold $ 42.6 Total $ 42.6 For the year ended December 31, 2021 Commodity swaps Cost of goods sold $ 403.4 Commodity options Cost of goods sold 0.1 Warrants Other non-operating income (expense), net (0.3) Total $ 403.2 For the year ended December 31, 2020 Commodity swaps Cost of goods sold $ 28.5 Warrants Other non-operating income (expense), net (2.4) Total $ 26.1 |
Employee Retirement Plans and P
Employee Retirement Plans and Postretirement Benefits | 12 Months Ended |
Dec. 31, 2022 | |
Retirement Benefits [Abstract] | |
Employee Retirement Plans and Postretirement Benefits | Employee Retirement Plans and Postretirement Benefits We maintain retirement plans for the majority of our employees. Depending on the location and benefit program, we provide either defined benefit pension or defined contribution plans to our employees. Each plan is managed locally and in accordance with respective local laws and regulations. We have defined benefit pension plans in the U.S., U.K. and Canada. Additionally, we offer OPEB plans to a portion of our Canadian, U.S. and Central European employees which are unfunded plans. BRI and BDL maintain defined benefit, defined contribution and postretirement benefit plans as well; however, those plans are excluded from this disclosure as BRI and BDL are equity method investments and not consolidated. In the U.S., we participate in and makes contributions to multi-employer pension plans. Contributions to multi-employer pension plans were $3.6 million, $7.1 million and $8.2 million for the years ended December 31, 2022, 2021 and 2020, respectively. Additionally, the U.S. postretirement health plan qualifies for the federal subsidy under the Medicare Prescription Drug Improvement and Modernization Act of 2003 (“the Act”) because the prescription drug benefits provided under our postretirement health plan for Medicare eligible retirees generally require lower premiums from covered retirees and have lower co-payments and deductibles than the benefits provided in Medicare Part D and, accordingly, are actuarially equivalent to or better than the benefits provided under the Act. The benefits paid, including prescription drugs, were $33.0 million, $33.8 million and $33.0 million for the years ended December 31, 2022, 2021 and 2020, respectively. There were no subsidies received for the years ended December 31, 2022 and 2021, and immaterial subsidies received for the year ended December 31, 2020. Defined Benefit and OPEB Plans Current Year Pension Transactions Purchase of an Annuity Contract in Canada During December 2022, we purchased an annuity contract to transfer all of the pension plan liabilities, approximately $185 million of projected benefit obligations as of December 31, 2021, of a certain pension plan and the associated administration of benefits to an insurance company using that plan's assets. This transaction had no impact on the amount, timing or form of the retirement benefit payments to the affected retirees and beneficiaries. Because approximately ninety-three percent of plan participants reside in jurisdictions allowing a company to discharge its pension liability, approximately ninety-three percent of the plan's liabilities and associated assets were written off. The remaining portion of plan assets and plan liabilities are recorded on our balance sheet as a buy-in transaction. Due to the close proximity to year end, the remaining pension plan assets and liabilities of the plan not discharged were remeasured using updated actuarial assumptions in conjunction with the year-end pension valuation. Purchase of an Annuity Contract in the United States During the third quarter of 2022, we purchased an annuity contract to transfer approximately $340 million, or approximately twenty percent, of U.S. qualified pension plan liabilities and the associated administration of benefits to an insurance company using U.S. qualified pension plan assets. This transaction had no impact on the amount, timing or form of the retirement benefit payments to the affected retirees and beneficiaries. As a result of the transaction, we reduced our U.S. qualified pension plan liabilities and assets, and remeasured the remaining pension plan assets and obligations using updated actuarial assumptions. Longevity Swap Insurance Contract During the second quarter of 2022, the trustees of the Molson Coors U.K. Pension Plan ("U.K. Pension Plan") entered into a longevity swap insurance contract with an insurer to alleviate risk in the U.K. Pension Plan from potential fluctuations in estimated life expectancy of covered participants who made up approximately 950 million GBP, or over fifty percent of the U.K. Pension Plan obligation as of December 31, 2021. Under the swap, the U.K. Pension Plan will be responsible for fixed payments to the insurer based on the assumptions outlined at the execution of the swap related to the estimated life expectancy of the covered participants while the insurer will be responsible for floating payments to the U.K. Pension Plan based on actual mortality experience of the covered participants. The longevity swap is accounted for as an asset of the U.K. Pension Plan and is valued at fair value in conjunction with the annual plan remeasurement on December 31 of each fiscal year. At execution of the swap, there was no value assigned to the swap due to the longevity swap insurance contract being entered into at market terms. In addition, no plan remeasurement was triggered at the execution of the contract as the swap does not relieve the U.K. Pension Plan of primary responsibility for the pension benefit obligation. As of December 31, 2022, the annual plan remeasurement resulted in an immaterial value of the swap. We will continue to revalue the swap annually as part of each year-end remeasurement. Benefit payments to the covered participants will continue to be paid from the U.K. Pension Plan, and there is no change to any contractual benefits owed to the covered participants by the U.K. Pension Plan. Net Periodic Pension and OPEB (Benefit) Cost For the years ended December 31, 2022 December 31, 2021 December 31, 2020 Pension OPEB Consolidated Pension OPEB Consolidated Pension OPEB Consolidated (In millions) Service cost Service cost $ 1.3 $ 5.5 $ 6.8 $ 2.7 $ 6.0 $ 8.7 $ 2.7 $ 6.0 $ 8.7 Other pension and postretirement (benefit) cost, net Interest cost 103.9 16.1 120.0 93.9 14.6 108.5 120.5 18.8 139.3 Expected return on plan assets, net of expenses (154.2) — (154.2) (161.6) — (161.6) (161.8) 0.2 (161.6) Amortization of prior service (benefit) cost 0.3 (0.7) (0.4) 0.4 (0.7) (0.3) 0.3 (0.7) (0.4) Amortization of net actuarial (gain) loss 5.6 (10.2) (4.6) 8.7 (6.7) 2.0 7.3 (14.5) (7.2) Curtailment, settlement or special termination benefit (gain) loss (1) 2.9 — 2.9 5.4 — 5.4 — — — Expected participant contributions (0.3) — (0.3) (0.4) — (0.4) (0.4) — (0.4) Total other pension and postretirement (benefit) cost, net (41.8) 5.2 (36.6) (53.6) 7.2 (46.4) (34.1) 3.8 (30.3) Net periodic pension and OPEB (benefit) cost $ (40.5) $ 10.7 $ (29.8) $ (50.9) $ 13.2 $ (37.7) $ (31.4) $ 9.8 $ (21.6) (1) The pension settlement charge recognized for the year ended December 31, 2022 primarily consisted of a settlement loss of $8.0 million that was recorded as a result of the annuity purchase for a certain Canadian pension plan described above, partially offset by a settlement gain of $5.3 million that was recorded as a result of the annuity purchase for a portion of our U.S. qualified pension plan described above. The pension settlement charge recognized for the year ended December 31, 2021 was due to lump sum distributions allowed for under the U.K. pension plan being in excess of interest cost for the year ended December 31, 2021. Lower interest cost was primarily a result of lower interest rates as of December 31, 2020, which were used to establish the 2021 periodic pension cost, compared to prior years. Obligations and Changes in Funded Status For the year ended December 31, 2022 For the year ended December 31, 2021 Pension OPEB Total Pension OPEB Total (In millions) Change in benefit obligation Prior year benefit obligation $ 5,095.8 $ 648.7 $ 5,744.5 $ 5,571.5 $ 704.7 $ 6,276.2 Service cost, net of expected employee contributions 1.0 5.5 6.5 2.3 6.0 8.3 Interest cost 103.9 16.1 120.0 93.9 14.6 108.5 Actual employee contributions 0.3 — 0.3 0.4 — 0.4 Actuarial (gain) loss (1,181.0) (144.6) (1,325.6) (227.4) (37.3) (264.7) Plan amendments — (0.1) (0.1) — — — Benefits paid (263.8) (38.7) (302.5) (293.1) (40.3) (333.4) Curtailment, settlement and special termination (460.6) 0.2 (460.4) (35.4) — (35.4) Foreign currency exchange rate change (317.6) (8.8) (326.4) (16.4) 1.0 (15.4) Benefit obligation at end of year $ 2,978.0 $ 478.3 $ 3,456.3 $ 5,095.8 $ 648.7 $ 5,744.5 Change in plan assets Prior year fair value of assets $ 5,667.5 $ — $ 5,667.5 $ 5,958.4 $ — $ 5,958.4 Actual return on plan assets (1,272.9) — (1,272.9) 55.5 — 55.5 Employer contributions (0.5) 38.7 38.2 2.2 40.3 42.5 Actual employee contributions 0.3 — 0.3 0.4 — 0.4 Curtailment, settlement and special termination (460.6) — (460.6) (35.4) — (35.4) Benefits and plan expenses paid (263.8) (38.7) (302.5) (293.1) (40.3) (333.4) Foreign currency exchange rate change (333.2) — (333.2) (20.5) — (20.5) Fair value of plan assets at end of year $ 3,336.8 $ — $ 3,336.8 $ 5,667.5 $ — $ 5,667.5 Funded (underfunded) status $ 358.8 $ (478.3) $ (119.5) $ 571.7 $ (648.7) $ (77.0) Amounts recognized in the Consolidated Balance Sheets Other non-current assets $ 397.2 $ — $ 397.2 $ 622.9 $ — $ 622.9 Accounts payable and other current liabilities (3.9) (39.5) (43.4) (4.1) (41.4) (45.5) Pension and postretirement benefits (34.5) (438.8) (473.3) (47.1) (607.3) (654.4) Net amounts recognized $ 358.8 $ (478.3) $ (119.5) $ 571.7 $ (648.7) $ (77.0) The accumulated benefit obligation for our defined benefit pension plans was approximately $3.0 billion and $5.1 billion as of December 31, 2022 and December 31, 2021, respectively. The $42.5 million increase in our underfunded status of our aggregate pension and OPEB plans from December 31, 2021 to December 31, 2022 was primarily due to the increase in discount rates from the prior year and the unfavorable asset returns experienced by our funded plans. As of December 31, 2022 and December 31, 2021, certain defined benefit pension plans in the U.S., Canada and the U.K. were overfunded as a result of our ongoing de-risking strategy. Information for our defined benefit pension plans that had aggregate accumulated benefit obligations and projected benefit obligations in excess of plan assets is as follows: As of December 31, 2022 December 31, 2021 (In millions) Accumulated benefit obligation $ 38.4 $ 51.2 Projected benefit obligation $ 38.4 $ 51.2 Fair value of plan assets $ — $ — Information for OPEB plans with an accumulated postretirement benefit obligation in excess of plan assets has been disclosed above in "Obligations and Changes in Funded Status" as all of our OPEB plans are unfunded. Accumulated Other Comprehensive Income (Loss) Amounts recognized in AOCI not yet recognized as components of net periodic pension and OPEB cost, pretax, were as follows: As of December 31, 2022 As of December 31, 2021 Pension OPEB Total Pension OPEB Total (In millions) Net actuarial (gain) loss $ 766.4 $ (278.2) $ 488.2 $ 553.4 $ (142.3) $ 411.1 Net prior service (benefit) cost 9.7 (0.8) 8.9 10.1 (3.2) 6.9 Total not yet recognized $ 776.1 $ (279.0) $ 497.1 $ 563.5 $ (145.5) $ 418.0 Assumptions Periodic pension and OPEB cost is actuarially calculated annually for each individual plan based on data available and assumptions made at the beginning of each year. Assumptions used in the calculation include the discount rate selected and disclosed at the end of the previous year as well as other assumptions detailed in the table below. The weighted-average rates used in determining the periodic pension and OPEB cost for the fiscal years 2022, 2021 and 2020 were as follows: For the years ended December 31, 2022 December 31, 2021 December 31, 2020 Pension OPEB Pension OPEB Pension OPEB Weighted-average assumptions: Discount rate 2.27% 2.59% 1.84% 2.10% 2.55% 2.91% Rate of compensation increase 2.00% N/A 2.00% N/A 2.00% N/A Expected return on plan assets 3.11% N/A 3.03% N/A 3.24% N/A Health care cost trend rate N/A Ranging ratably from 6.00% in 2022 to 3.57% in 2040 N/A Ranging ratably from 6.00% in 2021 to 3.57% in 2040 N/A Ranging ratably from 6.25% in 2020 to 3.57% in 2040 Benefit obligations are actuarially calculated annually at the end of each year based on the assumptions detailed in the table below. Obligations under the OPEB plans are determined by the application of the terms of medical, dental, vision and life insurance plans, together with relevant actuarial assumptions and heath care cost trend rates. The weighted-average rates used in determining the projected benefit obligation for defined pension plans and the accumulated postretirement benefit obligation for OPEB plans, as of December 31, 2022 and December 31, 2021, were as follows. As of December 31, 2022 As of December 31, 2021 Pension OPEB Pension OPEB Weighted-average assumptions Discount rate 5.01% 4.90% 2.27% 2.59% Rate of compensation increase 2.00% N/A 2.00% N/A Health care cost trend rate N/A Ranging ratably from 6.50% in 2023 to 3.57% in 2040 N/A Ranging ratably from 6.00% in 2022 to 3.57% in 2040 The change to the weighted-average discount rates used for our defined benefit pension plans and postretirement plans as of December 31, 2022 from December 31, 2021, is primarily due to increasing interest rates in 2022 across all plans, with the most significant increase seen in the U.K. pension plan. Investment Strategy The obligations of our defined benefit pension plans in the U.S., Canada and the U.K. are supported by assets held in trusts for the payment of future benefits. The business segments are obligated to adequately fund these asset trusts. The underlying investments within our defined benefit pension plans include: cash and short-term instruments, debt securities, equity securities, investment funds, and other investments including derivatives, hedge fund of funds and real estate. Investment allocations reflect the customized strategies of the respective plans. The plans use liability driven investment strategies in managing defined pension benefits. For all defined benefit pension plan assets, the plans have the following primary investment objectives: (1) optimize the long-term return on plan assets at an acceptable level of risk and manage projected future cash contributions; (2) maintain a broad diversification across asset classes and among investment managers; and (3) manage the risk level of the plans' assets in relation to the plans' liabilities. Each plan's respective allocation targets promote optimal expected return and volatility characteristics given a focus on a long-term time horizon for fulfilling the plans' obligations. All assets are managed by external investment managers with a mandate to either match or outperform their benchmark. The plans use different asset managers in the U.S., U.K. and Canada and each plan's respective asset allocation could be impacted by a change in asset managers. Our investment strategies for our defined benefit pension plans also consider the funded status for each plan. For defined benefit pension plans that are highly funded, assets are invested primarily in fixed income holdings that have a similar duration to the associated liabilities. For plans with lower funding levels, the fixed income component is managed in a similar manner to the highly funded plans. In addition to this liability-matching fixed income allocation, these plans also contain exposure to return generating assets including: equities, real estate, debt and other investments held with the goal of producing higher returns, which may also have a higher risk profile. These investments are diversified by investing globally with limitations placed on issuer concentration. Both our U.K. and Canadian plans hedge a portion of the foreign exchange exposure between plan assets that are not denominated in the local plan currency and the local currency as the Canadian and U.K. pension liabilities will be settled in CAD and GBP, respectively. Target Allocations The following compares target asset allocation percentages with actual asset allocations on a weighted-average asset basis as of December 31, 2022. While the actual allocations show a temporary shift away from fixed income securities due to the rising rate environment, the actual allocations remain within our Company defined tolerance levels. Target Actual Equities 7.9% 12.5% Fixed income 69.4% 65.2% Real estate 5.4% 5.3% Annuities and longevity swap 13.8% 13.8% Other 3.5% 3.2% Significant Concentration Risks We periodically evaluate our defined benefit pension plan assets for concentration risks. As of December 31, 2022, we did not have any individual underlying asset position that composed a significant concentration of each plan's overall assets. However, we currently have significant plan assets invested in U.K., U.S. and Canadian government fixed income holdings. A provisional credit rating downgrade for any of these governments could negatively impact the asset values. Further, as our benefit plans maintain exposure to non-government investments, a significant system-wide increase in credit spreads would also negatively impact the reported plan asset values. In general, equity and fixed income risks have been mitigated by company-specific concentration limits and by utilizing multiple equity managers. We do have significant amounts of assets invested with individual fixed income and hedge fund managers, therefore, the plans use outside investment consultants to aid in the oversight of these managers and fund performance. Valuation Techniques We use a variety of industry accepted valuation techniques to value our plan assets. The techniques vary depending upon instrument type. Whenever possible, we prioritize the use of observable market data in our valuation processes. We use market, income and cost approaches to value our plan assets as of period end. See Note 1, "Basis of Presentation and Summary of Significant Accounting Policies" for additional information on our fair value methodologies and accounting policies. We have not changed our fair value techniques used to value plan assets this year. Major Categories of Plan Assets As of December 31, 2022, our major categories of plan assets included the following: • Cash and short-term instruments—Includes cash, trades awaiting settlement, bank deposits, short-term bills and short-term notes. Our "trades awaiting settlement" category includes payables and receivables associated with asset purchases and sales that are awaiting final cash settlement as of year end due to the use of trade date accounting for our pension plans assets. These payables normally settle within a few business days of the purchase or sale of the respective asset. We include these items in Level 1 of this hierarchy, as the values are derived from quoted prices in active markets. Short-term instruments are included in Level 2 of the fair value hierarchy as these are highly liquid instruments that are valued using observable inputs, but their asset values are not publicly quoted. • Debt securities—Includes various government and corporate fixed income securities, interest and inflation-linked assets such as bonds and swaps, collateralized securities and other debt securities. The majority of the plans' fixed income assets trade on "over the counter" exchanges, which provides observable inputs that are the primary data used to determine each individual investment's fair value. We also use independent pricing vendors, as well as matrix pricing techniques. Matrix pricing uses observable data from other similar investments as the primary input to determine the individual security's fair value. Government and corporate fixed income securities are generally classified as Level 2 in the fair value hierarchy as they are valued using observable inputs. Assets included in our collateralized securities include mortgage backed securities and collateralized mortgage obligations, which are considered Level 3 due to the use of the significant unobservable inputs in deriving these assets' fair values. • Equities—Includes publicly traded common and other equity-like holdings, primarily publicly traded common stock and real estate investment trusts. Equity assets are well diversified between international and domestic investments. We consider equities quoted on public exchanges as Level 1 while other assets that are not quoted on public exchanges but valued using significant observable inputs as Level 2 depending on the individual asset's characteristics. • NAV per share practical expedient—Includes our debt funds, equity funds, hedge fund of funds, infrastructure funds, real estate fund holdings and private equity funds. The market values for these funds are based on the net asset values multiplied by the number of shares owned. • Annuities and Longevity Swap—Includes assets to mitigate risks of certain plans including buy-in annuities and longevity swap insurance contracts. Non-participating annuity buy-in insurance policies are purchased to mitigate volatility in cash flows associated with a portion of covered plan members. The fair value of non-participating contracts fluctuate based on changes in the obligation associated with covered plan members. The longevity swap insurance contract alleviates risk from fluctuations in estimated life expectancy of covered participants. The fair value of the longevity swap insurance contract is calculated by taking the present value of the expected cash flows from the floating leg on a prevailing market best estimate of mortality, including market views of fees, less the present value of the fixed leg payments that the plan is required to make under the contract including the contractual fees. The prevailing market best estimate of mortality is determined based on the effect of actual plan mortality experience of covered participants, a revised view on future improvements in mortality rates and a view on how risk fees have changed for this type of contract since inception. These values are considered Level 3 due to the use of the significant unobservable inputs used in deriving the asset's fair value. • Other—Includes derivatives, repurchase agreements, recoverable taxes for taxes paid and awaiting reclaim due to the tax exempt nature of the pension plan and private equity. Derivatives are priced using observable inputs including yields, interest rate curves and spreads. Exchange traded derivatives are typically priced using the last trade price. Repurchase agreements are agreements where our plan has created an asset exposure using borrowed assets, creating a repurchase agreement liability, to facilitate the trade. The assets associated with the repurchase agreement and equity options are included in the other category in the fair value hierarchy, and the corresponding repurchase agreement liability is classified as Level 1 in the hierarchy, as the liability is valued using quoted prices in active markets. When determining the presentation of our target and asset allocations for repurchase agreements, we are viewing the asset type, as opposed to the investment vehicle, and accordingly include the associated assets within fixed income, specifically interest and inflation linked assets. We include recoverable tax items in Level 1 of this hierarchy, as these are cash receivables and the values are derived from quoted prices in active markets. Private equity is included in Level 3 as the values are based upon the use of unobservable inputs. Fair Value Hierarchy The following presents our fair value hierarchy for our defined benefit pension plan assets excluding investments using the NAV per share practical expedient (in millions): Fair value measurements as of December 31, 2022 Total as of December 31, 2022 Quoted prices Significant Significant Cash and cash equivalents Cash $ 99.3 $ 99.3 $ — $ — Trades awaiting settlement 32.7 32.7 — — Bank deposits, short-term bills and notes 7.0 — 7.0 — Debt Government debt securities 422.6 — 422.6 — Corporate debt securities 89.1 — 89.1 — Interest and inflation linked assets 420.6 — 408.0 12.6 Collateralized debt securities 0.2 — — 0.2 Annuities and Longevity Swap Buy-in annuities and longevity swap 461.8 — — 461.8 Other Repurchase agreements (281.2) (281.2) — — Recoverable taxes 0.1 0.1 — — Private equity 12.4 — — 12.4 Total fair value of investments excluding NAV per share practical expedient $ 1,264.6 $ (149.1) $ 926.7 $ 487.0 The following presents our total fair value of plan assets including the NAV per share practical expedient for our defined benefit pension plan assets: Total as of December 31, 2022 (In millions) Fair value of investments excluding NAV per share practical expedient $ 1,264.6 Fair value of investments using NAV per share practical expedient Debt funds 1,355.7 Equity funds 417.4 Real estate funds 130.9 Private equity funds 44.7 Hedge funds 123.5 Total fair value of plan assets $ 3,336.8 The following presents our fair value hierarchy for our defined benefit pension plan assets excluding investments using the NAV per share practical expedient (in millions): Fair value measurements as of December 31, 2021 Total as of December 31, 2021 Quoted prices Significant Significant Cash and cash equivalents Cash $ 198.4 $ 198.4 $ — $ — Trades awaiting settlement 2.1 2.1 — — Bank deposits, short-term bills and notes 25.5 — 25.5 — Debt Government securities 751.0 — 751.0 — Corporate debt securities 142.0 — 142.0 — Interest and inflation linked assets 1,029.7 — 1,013.8 15.9 Annuities Buy-in annuities 708.9 — — 708.9 Other Repurchase agreements (477.4) (477.4) — — Recoverable taxes 0.2 0.2 — — Private equity 29.7 — — 29.7 Total fair value of investments excluding NAV per share practical expedient $ 2,410.1 $ (276.7) $ 1,932.3 $ 754.5 The following presents our fair value hierarchy including the NAV per share practical expedient for our defined benefit pension plan assets: Total as of December 31, 2021 (In millions) Fair value of investments excluding NAV per share practical expedient $ 2,410.1 Fair value of investments using NAV per share practical expedient Debt funds 2,034.2 Equity funds 732.1 Real estate funds 285.0 Private equity funds 65.8 Hedge funds 140.3 Total fair value of plan assets $ 5,667.5 Fair Value: Level Three Rollforward The following presents our Level 3 Rollforward for our defined pension plan assets excluding investments using the NAV per share practical expedient: Amount (In millions) Balance as of December 31, 2020 $ 856.3 Total gain or loss (realized/unrealized) Realized gain (loss) 0.9 Unrealized gain (loss) included in AOCI (63.3) Purchases, issuances, settlements (32.8) Foreign exchange translation (loss)/gain (6.6) Balance as of December 31, 2021 $ 754.5 Total gain or loss (realized/unrealized) Realized gain (loss) (1.9) Unrealized gain (loss) included in AOCI (183.5) Purchases, issuances, settlements (6.6) Foreign exchange translation (loss)/gain (75.5) Balance as of December 31, 2022 $ 487.0 Expected Cash Flows Defined benefit pension plan contributions in future years will vary based on a number of factors, including actual plan asset returns and interest rates. We fund pension plans to meet the requirements set forth in applicable employee benefits laws. We took and continue to take steps to reduce our exposure to our pension obligations. Such steps include the closure of the U.K. and U.S. pension plans to future earnings of service credit, benefit modifications in certain Canada plans and the entering into of buy-in and buy-out contracts for certain plans. We may also voluntarily increase funding levels to meet financial goals. Our U.K. pension plan is subject to a statutory valuation for funding purposes every three years. The most recent valuation as of June 30, 2022 indicated that the plan does not have a funding deficit relative to the plan's statutory funding objective, and therefore, no MCBC contributions are currently required. For the year ended December 31, 2023, we expect to make contributions to our defined benefit pension plans of approximately $4 million and benefit payments under our OPEB plans of approximately $39 million based on foreign exchange rates as of December 31, 2022. Additionally, we anticipate utilizing approximately $5 million of surplus from certain Canadian defined benefit pension plans to fund employer contributions to certain Canadian defined contribution plans. BRI and BDL contributions to their respective defined benefit pension plans are excluded here, as they are not consolidated in our financial statements. Plan funding strategies are influenced by employee benefits, tax laws and plan governance documents. Expected future benefit payments for defined benefit pension and OPEB plans, based on foreign exchange rates as of December 31, 2022, are as follows: Expected benefit payments Pension OPEB (In millions) 2023 $ 251.4 $ 39.5 2024 $ 242.2 $ 39.1 2025 $ 243.9 $ 38.6 2026 $ 244.4 $ 38.3 2027 $ 244.8 $ 38.0 2028-2032 $ 1,228.6 $ 184.2 Defined Contribution Plans We offer defined contribution plans for the majority of our U.S., Canadian and U.K. employees. The investment strategy for defined contribution plans are determined by each individual participant from the options we have made available as the plan sponsor. U.S. non-union employees are eligible to participate in qualified defined contribution plans which provide for employer contributions ranging from 5% to 11% of eligible compensation (certain employees were also eligible for additional employer contributions). In addition, U.S. union employees are eligible to participate in a qualified defined contribution plan which provides for employer contributions based on factors associated with various collective bargaining agreements. The employer contributions to the U.K. plans can range up to 10% of employee compensation and in Canada plans range from 4% to 8.5%. Both employee and employer contributions are made in cash in accordance with participant investment elections. We recognized costs associated with defined contribution plans of $73.0 million, $77.8 million and $75.5 million in 2022, 2021 and 2020, respectively. |
Income Tax
Income Tax | 12 Months Ended |
Dec. 31, 2022 | |
Income Tax Disclosure [Abstract] | |
Income Tax | Income Tax Our income (loss) before income taxes on which the provision for income taxes was computed is as follows: For the years ended December 31, 2022 December 31, 2021 December 31, 2020 (In millions) Domestic $ 228.4 $ 1,307.5 $ 1,151.7 Foreign (290.9) (68.5) (1,795.6) Total $ (62.5) $ 1,239.0 $ (643.9) The components of the provision for income taxes are as follows: For the years ended December 31, 2022 December 31, 2021 December 31, 2020 (In millions) Current Federal $ 146.1 $ 43.5 $ 79.0 State 22.3 7.1 5.2 Foreign (17.2) (1.0) 111.4 Total current tax (benefit) expense $ 151.2 $ 49.6 $ 195.6 Deferred Federal $ 56.4 $ 163.5 $ 101.9 State (26.2) 70.4 19.5 Foreign (57.4) (53.0) (15.2) Total deferred tax (benefit) expense $ (27.2) $ 180.9 $ 106.2 Total income tax (benefit) expense $ 124.0 $ 230.5 $ 301.8 A reconciliation from the U.S. statutory federal income tax rate to the effective income tax rate is as follows: For the years ended December 31, 2022 December 31, 2021 December 31, 2020 ($ in millions) Statutory federal income tax rate 21.0 % $ (13.1) 21.0 % $ 260.2 21.0 % $ (135.2) State income taxes, net of federal benefits 6.1 % (3.8) 4.7 % 57.8 (1.7) % 11.0 Effect of foreign tax rates 92.6 % (57.9) (5.5) % (68.3) 3.5 % (22.3) Effect of foreign tax law and rate changes (0.8) % 0.5 1.6 % 19.6 (0.9) % 6.0 Effect of unrecognized tax benefits (20.5) % 12.8 (6.2) % (76.3) (26.1) % 167.9 Change in valuation allowance 1.1 % (0.7) (0.1) % (1.1) 1.3 % (8.4) Goodwill impairment (287.0) % 179.3 (0.2) % (2.9) (41.4) % 266.8 Other, net (10.9) % 6.9 3.3 % 41.5 (2.6) % 16.0 Effective tax rate / Tax (benefit) expense (198.4) % $ 124.0 18.6 % $ 230.5 (46.9) % $ 301.8 The decrease in the effective tax rate for fiscal year 2022 when compared to the statutory rate was primarily due to the impact of the $845 million partial goodwill impairment, recorded within our Americas segment in the fourth quarter of 2022, which related to goodwill not deductible for tax purposes. The decrease to the effective tax rate for fiscal year 2021 when compared to the statutory rate was primarily due to the release of $73 million of reserves for unrecognized tax benefit positions recognized in the third quarter of 2021. The reserve release included amounts for an income tax audit settlement, net of changes in estimates associated with prior period uncertain tax positions, as well as amounts for the expiration of statutes of limitations. Additionally, during the second quarter of 2021, the U.K. government enacted, and royal assent was received for, legislation to increase the corporate income tax rate from 19% to 25%. Remeasurement of our deferred tax liabilities under the higher income tax rate resulted in the recognition of additional discrete tax expense of approximately $18 million in the second quarter of 2021. The decrease to the effective tax rate for fiscal year 2020 when compared to the statutory rate was primarily due to the impact of the $1,484.3 million goodwill impairment, recorded within our EMEA&APAC segment in the fourth quarter of 2020, of which a majority related to nondeductible goodwill. Additionally, during the second quarter of 2020, we recognized approximately $135 million of tax expense following the enactment of the final U.S. tax hybrid regulations. Additionally, our foreign businesses operate in jurisdictions with statutory income tax rates that differ from the U.S. Federal statutory rate. Specifically, the statutory income tax rates in the countries in Europe in which we operate range from 9% to 25.8%, and Canada has a combined federal and provincial statutory income tax rate of approximately 26%. As of December 31, 2022 December 31, 2021 (In millions) Deferred tax assets Compensation-related obligations $ 44.7 $ 54.8 Pension and postretirement benefits 33.7 24.5 Tax credit carryforwards 39.0 38.3 Tax loss carryforwards 291.1 359.0 Accrued liabilities and other 149.0 97.7 Valuation allowance (57.2) (60.7) Deferred tax assets $ 500.3 $ 513.6 Deferred tax liabilities Fixed assets 358.9 422.4 Partnerships and investments 33.2 29.7 Intangible assets 2,563.2 2,539.7 Derivative instruments 31.5 19.5 Deferred tax liabilities $ 2,986.8 $ 3,011.3 Net deferred tax liabilities $ 2,486.5 $ 2,497.7 Our deferred tax valuation allowances are primarily the result of uncertainties regarding the future realization of recorded tax benefits on tax loss carryforwards from operations in various jurisdictions. The measurement of deferred tax assets is reduced by a valuation allowance if, based upon available evidence, it is more likely than not that the deferred tax assets will not be realized. We have evaluated the realizability of our deferred tax assets in each jurisdiction by assessing the adequacy of expected taxable income, including the reversal of existing temporary differences, historical and projected operating results and the availability of prudent and feasible tax planning strategies. Based on this analysis, we have determined that the valuation allowances recorded in each period presented are appropriate. We have deferred tax assets for U.S. tax loss and credit carryforwards that expire between 2023 and 2042 of $70.9 million and U.S. tax losses that may be carried forward indefinitely of $19.6 million. We have foreign tax loss and credit carryforwards that expire between 2023 and 2042 of $196.0 million and foreign tax losses that may be carried forward indefinitely of $38.3 million. The following table presents our net deferred tax liabilities as of December 31, 2022 and December 31, 2021. As of December 31, 2022 December 31, 2021 (In millions) Domestic deferred tax liabilities $ 1,927.7 $ 1,825.9 Foreign deferred tax assets 125.8 180.2 Foreign deferred tax liabilities 684.6 852.0 Net deferred tax liabilities $ 2,486.5 $ 2,497.7 The total foreign deferred tax assets above are presented within other assets on the consolidated balance sheets and domestic and foreign deferred tax liabilities above are presented within deferred tax liabilities on the consolidated balance sheets. The deferred tax liability amounts as of December 31, 2022 and December 31, 2021 excluded $34.0 million and $26.7 million, respectively, of unrecognized tax benefits that have been recorded as a reduction of deferred tax assets, which is presented within deferred tax liabilities due to jurisdictional netting on the consolidated balance sheets. A reconciliation of the beginning and ending amounts of un recognized tax benefits, excluding interest and penalties, is as follows: For the years ended December 31, 2022 December 31, 2021 December 31, 2020 (In millions) Balance at beginning of year $ 28.0 $ 235.7 $ 72.4 Additions for tax positions related to the current year 15.9 28.6 22.8 Additions for tax positions of prior years 1.9 — 132.1 Reductions for tax positions related to the current year — (24.1) — Reductions for tax positions of prior years — (48.9) (1.6) Settlements (3.7) (161.8) (0.4) Release due to statute expirations (1.3) (3.4) — Foreign currency adjustment (1.5) 1.9 10.4 Balance at end of year $ 39.3 $ 28.0 $ 235.7 Our remaining unrecognized tax benefits as of December 31, 2022, relate to tax years that are currently open to examination. As of December 31, 2022 and December 31, 2021, we have remaining unrecognized tax benefits recorded within other liabilities in our consolidated balance sheets of $5.4 million and $1.4 million, respectively. The remaining balance of our unrecognized tax benefits is recorded within deferred tax liabilities in our consolidated balance sheets. Annual tax provisions include amounts considered sufficient to pay assessments that may result from examination of prior year tax returns; however, the amount ultimately paid upon resolution of issues may differ materially from the amount accrued. The Company recognizes interest and penalties related to unrecognized tax benefits as part of income taxes on our consolidated statements of operation. Expense (benefit) recognized on interest and penalties related to unrecognized tax benefits as of December 31, 2022, December 31, 2021, and December 31, 2020 was $(5.9) million, $1.4 million and $8.5 million, respectively. If the Company were to prevail on all uncertain tax positions, the reversal of this accrual, inclusive of interest and penalties, would result in a benefit of $31.5 million. During the third quarter of 2021, an income tax audit settlement, which included the resolution of the impact of the final hybrid regulations recorded in the second quarter of 2020, was reached with taxing authorities. The settlement, along with changes to other unrecognized positions resulted in the net reduction of our unrecognized tax benefit position by approximately $250 million, including interest, in the third quarter of 2021. The cash tax payment associated with the settlement, after application of available net operating losses, was made in the fourth quarter of 2021 which totaled approximately $125 million. As of the fourth quarter of 2022, we do not anticipate material changes to our remaining unrecognized tax benefit position within the next 12 months. We file income tax returns in most of the federal, state and provincial jurisdictions in the U.S., Canada and various countries in Europe. Tax years through 2013 are closed in the U.S. In Canada, tax years through 2017 are closed or have been settled through examination except for issues relating to intercompany cross-border transactions. The statute of limitations for intercompany cross-border transactions is closed through tax year 2014. Tax years through 2014 are closed for most European jurisdictions in which we operate, with statutes of limitations varying from 3 to 7 years for most jurisdictions. When cash is available after satisfying working capital needs and all other business obligations, we may distribute current earnings and the associated cash from a foreign subsidiary to its U.S. parent, and record the tax impact associated with the distribution. However, to the extent current earnings of our foreign operations exist and are not otherwise distributed or planned to be distributed, such earnings accumulate. These accumulated earnings are not considered permanently reinvested in our foreign operations. The taxes associated with any future repatriation of undistributed earnings are anticipated to be insignificant. |
Commitments and Contingencies
Commitments and Contingencies | 12 Months Ended |
Dec. 31, 2022 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Commitments and Contingencies Letters of Credit As of December 31, 2022, we had $54 million outstanding in letters of credit with financial institutions. These letters primarily expire throughout 2023 a nd $15 million of the letters contain a feature that automatically renews the letter for an additional year if no cancellation notice is submitted. These letters of credit are being maintained as security for deferred compensation payments, reimbursements to insurance companies, reimbursements to the trustee for pension payments, deductibles or retention payments made on our behalf, various payments due to governmental agencies, operations of underground storage tanks and other general business purposes and are not included on our consolidated balance sheets. Guarantees and Indemnities We guarantee indebtedness and other obligations to banks and other third parties for some of our equity method investments and consolidated subsidiaries. As of December 31, 2022 and December 31, 2021, the consolidated balance sheets include liabilities related to these guarantees of $33.3 million and $38.1 million, respectively. See Note 3, "Investments" for further detail. Kaiser In 2006, we sold our entire equity interest in our Brazilian unit, Cervejarias Kaiser Brasil S.A. ("Kaiser") to FEMSA Cerveza S.A. de C.V. ("FEMSA"). The terms of the sale agreement require us to indemnify FEMSA for certain exposures related to tax, civil and labor contingencies arising prior to FEMSA's purchase of Kaiser. In addition, we provided an indemnity to FEMSA for losses Kaiser may incur with respect to tax claims associated with certain previously utilized purchased tax credits. We settled a portion of our tax credit indemnity obligation during 2010. The maximum potential claims amount for the remainder of the purchased tax credits was $66.2 million as of December 31, 2022. Our total estimate of the indemnity liability as of December 31, 2022 was $7.6 million which is classified as non-current. Our estimates consider a number of scenarios for the ultimate resolution of these issues, the probabilities of which are influenced not only by legal developments in Brazil but also by management's intentions with regard to various alternatives that could present themselves leading to the ultimate resolution of these issues. The liabilities are impacted by changes in estimates regarding amounts that could be paid, the timing of such payments, adjustments to the probabilities assigned to various scenarios and foreign currency exchange rates. Our indemnity also covers fees and expenses that Kaiser incurs to manage the cases through the administrative and judicial systems. Additionally, we also provided FEMSA with indemnity related to all other tax, civil and labor contingencies existing as of the date of sale. In this regard, however, FEMSA assumed their full share of all of these contingent liabilities that had been previously recorded and disclosed by us prior to the sale on January 13, 2006. However, we may have to provide indemnity to FEMSA if those contingencies settle at amounts greater than those amounts previously recorded or disclosed by us. We will be able to offset any indemnity exposures in these circumstances with amounts that settle favorably to amounts previously recorded. Our exposure related to these indemnity claims is capped at the amount of the sales price of the 68% equity interest of Kaiser, which was $68 million. As a result of these contract provisions, our estimates include not only probability-weighted potential cash outflows associated with indemnity provisions, but also probability-weighted cash inflows that could result from favorable settlements, which could occur through negotiation or settlement programs arising from the federal or any of the various state governments in Brazil. The recorded value of the tax, civil and labor indemnity liability was $3.2 million as of December 31, 2022, which was classified as non-current. For the remaining portion of our indemnity obligations, not deemed probable, we continue to utilize probability-weighted scenarios in determining the value of the indemnity obligations. Future settlement procedures and related negotiation activities associated with these contingencies are largely outside of our control. The sale agreement requires annual cash settlements relating to the tax, civil and labor indemnities. Due to the uncertainty involved with the ultimate outcome and timing of these contingencies, significant adjustments to the carrying values of the indemnity obligations have been recorded to date and additional future adjustments may be required. These liabilities are denominated in Brazilian Reais and are therefore, subject to foreign exchange gains or losses. As a result, these foreign exchange gains and losses are the only impacts recorded within other non-operating income (expense), net. The table below provides a summary of reserves associated with the Kaiser indemnity obligations from December 31, 2019 through December 31, 2022: Total indemnity (In millions) Balance as of December 31, 2019 $ 14.2 Foreign exchange impacts (3.2) Balance as of December 31, 2020 $ 11.0 Foreign exchange impacts (0.8) Balance as of December 31, 2021 $ 10.2 Foreign exchange impacts 0.6 Balance as of December 31, 2022 $ 10.8 Purchase Obligations We have various long-term supply contracts and distribution agreements with unaffiliated third parties and our joint venture partners to purchase materials used in production and packaging and to provide distribution services. The supply contracts provide that we purchase certain minimum levels of materials throughout the terms of the contracts. Additionally, we have various long-term non-cancelable commitments for advertising, sponsorships and promotions, including marketing at sports arenas, stadiums and other venues and events. The future aggregate minimum required commitments under these purchase obligations are shown in the table below based on foreign exchange rates as of December 31, 2022. The amounts in the table do not represent all anticipated payments under long-term contracts. Rather, they represent unconditional, non-cancelable purchase commitments under contracts with remaining terms greater than one year. Year Supply and Distribution Advertising and Promotions (Amounts in millions) 2023 $ 292.3 $ 161.6 2024 196.4 158.7 2025 184.7 126.2 2026 144.9 94.7 2027 138.2 70.7 Thereafter 216.0 177.3 Total $ 1,172.5 $ 789.2 Total purchases under our long-term unconditional, non-cancellable supply and distribution contracts in 2022, 2021 and 2020 were approximately $0.4 billion , $0.4 billion and $0.5 billion, respectively. Litigation, Other Disputes and Environmental Related to litigation, other disputes and environmental issues, we had an aggregate accrued contingent liability of $77.0 million and $11.3 million as of December 31, 2022 and December 31, 2021, respectively. While we cannot predict the eventual aggregate cost for litigation, other disputes and environmental matters in which we are currently involved, we believe adequate reserves have been provided for losses that are probable and estimable. Additionally, as noted below, there are certain loss contingencies that we deem reasonably possible for which a range of loss is not estimable at this time; for all other matters, we believe that any reasonably possible losses in excess of the amounts accrued are immaterial to our audited consolidated financial statements. We are involved in other disputes and legal actions arising in the ordinary course of our business. While it is not feasible to predict or determine the outcome of these proceedings, in our opinion, based on a review with legal counsel, other than as noted, none of these disputes or legal actions are expected to have a material impact on our business, consolidated financial position, results of operations or cash flows. However, litigation is subject to inherent uncertainties and an adverse result in these or other matters may arise from time to time that may harm our business. On February 12, 2018, Stone Brewing Company filed a trademark infringement lawsuit in federal court in the Southern District of California against Molson Coors Beverage Company USA LLC ("MCBC USA"), a wholly owned subsidiary of our Company, alleging that the Keystone brand has “rebranded” itself as “Stone” and is marketing itself in a manner confusingly similar to Stone Brewing Company's registered Stone trademark. Stone Brewing Company sought treble damages and disgorgement of MCBC USA's profit from Keystone sales. MCBC USA subsequently filed an answer and counterclaims against Stone Brewing Company. On May 31, 2018, Stone Brewing Company filed a motion to dismiss MCBC USA's counterclaims and for a preliminary injunction seeking to bar MCBC USA from continuing to use “STONE” on Keystone Ligh t cans and related marketing materials. In March 2019, the court denied Stone Brewing Company’s motion for preliminary injunction and its motion to dismiss MCBC USA's counterclaims. The jury trial began on March 7, 2022. The jury returned a verdict in which it concluded that trademark infringement had occurred and awarded Stone Brewing Company $56.0 million in damages. The jury also found that no "willful" trademark infringement had occurred. The trial court subsequently denied Stone Brewing Company’s motion for permanent injunction, motion for disgorgement of profits and motion for treble damages. Judgment was entered on September 8, 2022. Both parties filed post-trial motions, including MCBC USA’s renewed motion for judgment as a matter of law or, in the alternative, a new trial and/or remittitur and Stone Brewing Company’s motion for partial new trial of equitable issues. The court has taken those issues under advisement. Resolution of the remaining post-trial issues could alter or nullify the judgment. At the conclusion of these issues, either or both parties could appeal the case to the applicable federal appellate court. As of December 31, 2022, the Company had a recorded accrued liability of $56.6 million within other liabilities on our consolidated balance sheets reflecting the best estimate of probable loss in this case based on the judgment plus associated post-judgment interest. However, it is reasonably possible that the estimate of the loss could change in the near term based on the progression of the case, including any potential impact of the resolution of remaining post-trial issues, as well as any appeals process. We will continue to monitor the status of the case and will adjust the accrual in the period in which any significant change occurs which could impact the estimate of the loss for this matter. Regulatory Contingencies In June 2019, the Ontario government adopted a bill that, if enacted, would terminate a 10-year Master Framework Agreement that was originally signed in 2015 between the previous government administration and Molson Canada 2005, a wholly owned indirect subsidiary of our Company, Labatt Brewing Company Limited, Sleeman Breweries Ltd., and Brewers Retail Inc. and dictates the terms of the beer distribution and retail systems in Ontario through 2025. The government has not proclaimed the bill as law and the impacts of the potential legislative changes are unknown at this time but could have a negative impact on the results of operations, cash flows and financial position of the Americas segment. Molson Canada 2005 and the other Master Framework Agreement signatories are prepared to vigorously defend our rights and pursue legal recourse, should the Master Framework Agreement be unilaterally terminated by the enactment of the 2019 legislation. The initial term of the Master Framework Agreement does not expire until December 31, 2025, and the Master Framework Agreement contains a provision requiring two-year advance notice of the government's intention to not renew the Master Framework Agreement. Environmental When we determine it is probable that a liability for environmental matters or other legal actions exists and the amount of the loss is reasonably estimable, an estimate of the future costs is recorded as a liability in the financial statements. Costs that extend the life, increase the capacity or improve the safety or efficiency of our assets or are incurred to mitigate or prevent future environmental contamination may be capitalized. Other environmental costs are expensed when incurred. Total environmental expenditures recognized for 2022, 2021 and 2020 were immaterial to our consolidated financial statements. Americas Our Canada brewing operations are subject to provincial environmental regulations and local permit requirements. Our Longueuil, Chilliwack and Toronto breweries have water treatment facilities to pre-treat waste water before it goes to the respective local governmental facility for final treatment. We have environmental programs in Canada including organization, monitoring and verification, regulatory compliance, reporting, education and training and corrective action. In Canada, we sold a chemical specialties business in 1996. We are still responsible for certain aspects of environmental remediation, undertaken or planned, at those chemical specialties business locations. We have established provisions for the costs of these remediation programs. In the U.S., we were previously notified that we are or may be a potentially responsible party ("PRP") under the Comprehensive Environmental Response, Compensation and Liability Act or similar state laws for the cleanup of sites where hazardous substances have allegedly been released into the environment. We cannot predict with certainty the total costs of cleanup, our share of the total cost, the extent to which contributions will be available from other parties, the amount of time necessary to complete the cleanups or insurance coverage. Lowry We are one of a number of entities named by the Environmental Protection Agency ("EPA") as a PRP at the Lowry Superfund site in Colorado. This landfill is owned by the City and County of Denver ("Denver") and is managed by Waste Management of Colorado, Inc. ("Waste Management"). In 1990, we recorded a pretax charge of $30 million, a portion of which was put into a trust in 1993 as part of a settlement with Denver and Waste Management regarding the then-outstanding litigation. Our settlement was based on an assumed remediation cost of $120 million (in 1992 adjusted dollars). We are obligated to pay a portion of future costs in excess of that amount. Waste Management provides us with updated annual cost estimates through 2032. We review these cost estimates in the assessment of our accrual related to this issue. Our expected liability is based on our best estimates available. Based on the assumptions utilized, the present value and gross amount of the costs as of December 31, 2022 are approximately $5 million and $7 million, respectively. C ost estimates were discounted using a 3.88% risk-free rate of return. We did not assume any future recoveries from insurance companies in the estimate of our liability and none are expected. Considering the estimates extend through the year 2032 and the related uncertainties at the site, including what additional remedial actions may be required by the EPA, new technologies and what costs we are required to cover, the estimate of our liability may change as further facts develop. We cannot predict the amount of any such change, but additional accruals in the future are possible. Other In prior years, we were notified by the EPA and certain state environmental divisions that we are a PRP, along with other parties, at the East Rutherford and Berry's Creek sites in New Jersey and the Chamblee site in Georgia. Certain former non-beer business operations, which we discontinued use of and subsequently sold, were involved at these sites. Potential losses associated with these sites could increase as remediation planning progresses. We are aware of groundwater contamination at some of our properties in Colorado resulting from historical, ongoing, or nearby activities. There may also be other contamination of which we are currently unaware. EMEA&APAC We are subject to the requirements of governmental and local environmental and occupational health and safety laws and regulations within each of the countries in which we operate. Compliance with these laws and regulations did not materially affect our 2022 capital expenditures, results of operations or our financial or competitive position, and we do not currently anticipate that they will do so in 2023. |
Stockholders' Equity
Stockholders' Equity | 12 Months Ended |
Dec. 31, 2022 | |
Equity [Abstract] | |
Stockholders' Equity | Stockholders' Equity Changes to the number of shares of capital stock issued were as follows: Common stock Exchangeable Class A Class B Class A Class B (Share amounts in millions) Balance as of December 31, 2019 2.6 205.7 2.7 14.8 Shares issued under equity compensation plans — 0.4 — — Shares exchanged for common stock — 3.7 — (3.7) Balance as of December 31, 2020 2.6 209.8 2.7 11.1 Shares issued under equity compensation plans — 0.3 — — Balance as of December 31, 2021 2.6 210.1 2.7 11.1 Shares issued under equity compensation plans — 0.3 — — Shares exchanged for common stock — 0.1 — (0.1) Balance as of December 31, 2022 2.6 210.5 2.7 11.0 Exchangeable Shares The Class A exchangeable shares and Class B exchangeable shares were issued by Molson Coors Canada Inc., a wholly-owned subsidiary of our Company. The exchangeable shares are substantially the economic equivalent of the corresponding shares of Class A and Class B common stock that a Molson shareholder would have received in the merger of Adolph Coors Company with Molson Inc. in February 2005, if the holder had elected to receive shares of Molson Coors common stock. Exchangeable shareholders receive the CAD equivalent of dividends declared on Class A and B common stock on the date of declaration. Holders of exchangeable shares also receive, through a voting trust, the benefit of Molson Coors voting rights, entitling the holder to one vote on the same basis and in the same circumstances as one corresponding share of Molson Coors common stock. Voting Rights Each holder of record of Class A common stock, Class B common stock, Class A exchangeable shares and Class B exchangeable shares is entitled to one vote for each share held, without the ability to cumulate votes on the election of directors. Our Class B common stock has fewer voting rights than our Class A common stock and holders of our Class A common stock have the ability to effectively control or have a significant influence over company actions requiring stockholder approval. Specifically, holders of Class B common stock voting together as a single class have the right to elect three directors of the Molson Coors Board of Directors, as well as the right to vote on certain additional matters as outlined in the Restated Certificate of Incorporation (as amended, the “Certificate”), such as merger agreements that require approval under applicable law, sales of all or substantially all of our assets to unaffiliated third parties, proposals to dissolve MCBC, and certain amendments to the Certificate that require approval under applicable law, each as further described and limited by the Certificate. The Certificate also provides that holders of Class A common stock and Class B common stock shall vote together as a single class, on an advisory basis, on any proposal to approve the compensation of MCBC's named executive officers. Conversion Rights |
Accumulated Other Comprehensive
Accumulated Other Comprehensive Income (Loss) | 12 Months Ended |
Dec. 31, 2022 | |
Accumulated Other Comprehensive Income (Loss), Net of Tax [Abstract] | |
Accumulated Other Comprehensive Income (Loss) | Accumulated Other Comprehensive Income (Loss) MCBC stockholders' equity Foreign Gain (loss) on Pension and Equity method Accumulated (In millions) As of December 31, 2019 $ (652.5) $ (87.8) $ (351.0) $ (70.9) $ (1,162.2) Foreign currency translation adjustments 196.0 — (1.6) — 194.4 Gain (loss) on net investment hedges (113.5) — — — (113.5) Unrealized gain (loss) on derivative instruments — (113.5) — — (113.5) Reclassification of derivative (gain) loss to income (loss) — (0.5) — — (0.5) Net change in pension and other postretirement benefit assets and liabilities — — (52.9) — (52.9) Pension and other postretirement prior service (benefit) cost and net actuarial (gain) loss amortization and settlements to income (loss) — — (7.6) — (7.6) Ownership share of unconsolidated subsidiaries' other comprehensive income (loss) — — — 19.4 19.4 Tax benefit (expense) 30.5 27.9 15.4 (5.2) 68.6 As of December 31, 2020 $ (539.5) $ (173.9) $ (397.7) $ (56.7) $ (1,167.8) Foreign currency translation adjustments (85.6) — (1.2) — (86.8) Reclassification of cumulative translation adjustment (1) 7.5 — — — 7.5 Gain (loss) on net investment hedges 76.5 — — — 76.5 Unrealized gain (loss) on derivative instruments — 51.1 — — 51.1 Reclassification of derivative (gain) loss to income (loss) — 7.5 — — 7.5 Net change in pension and other postretirement benefit assets and liabilities — — 158.6 — 158.6 Pension and other postretirement prior service (benefit) cost and net actuarial (gain) loss amortization and settlements to income (loss) — — 7.1 — 7.1 Ownership share of unconsolidated subsidiaries' other comprehensive income (loss) — — — 20.8 20.8 Tax benefit (expense) (17.6) (15.7) (41.9) (5.3) (80.5) As of December 31, 2021 $ (558.7) $ (131.0) $ (275.1) $ (41.2) $ (1,006.0) Foreign currency translation adjustments (356.1) — 1.2 — (354.9) Reclassification of cumulative translation adjustment (1) 12.1 — — — 12.1 Gain (loss) on net investment hedges 53.2 — — — 53.2 Unrealized gain (loss) on derivative instruments — 209.7 — — 209.7 Reclassification of derivative (gain) loss to income (loss) — 12.9 — — 12.9 Net change in pension and other postretirement benefit assets and liabilities — — (78.2) — (78.2) Pension and other postretirement prior service (benefit) cost and net actuarial (gain) loss amortization and settlements to income (loss) — — (2.1) — (2.1) Ownership share of unconsolidated subsidiaries' other comprehensive income (loss) — — — 18.7 18.7 Tax benefit (expense) (25.7) (59.4) 19.1 (4.9) (70.9) As of December 31, 2022 $ (875.2) $ 32.2 $ (335.1) $ (27.4) $ (1,205.5) (1) As a result of the sale of a disposal group within our India business for the year ended December 31, 2021, the associated cumulative foreign currency translation adjustment was reclassified from AOCI and recognized within other operating income (expense), net. As a result of the completion of the sale of our non-operating India entity during 2022, the associated cumulative foreign currency translation adjustment was reclassified from AOCI and recognized within other operating income (expense), net. We have significant levels of net assets denominated in currencies other than the USD due to our operations in foreign countries, and therefore we recognize OCI gains and/or losses when those items are translated to USD. The foreign currency translation adjustment losses during 2022 were primarily due to the weakening of the CAD, GBP, EUR and certain other currencies of our Europe operations versus the USD. The foreign currency translation losses recognized during 2021 were primarily due to the weakening of the GBP, EUR and certain other currencies of our Europe operations versus the USD. The foreign currency translation adjustment gains during 2020 were primarily due to the strengthening of the CAD, GBP and certain other currencies of our Europe operations versus the USD. Reclassifications from AOCI to income For the years ended December 31, 2022 December 31, 2021 December 31, 2020 Reclassifications from AOCI Location of gain (loss) (In millions) Gain/(loss) on cash flow hedges Forward starting interest rate swaps $ (14.3) $ (4.8) $ (2.9) Interest expense, net Foreign currency forwards 1.8 (3.5) 4.6 Cost of goods sold Foreign currency forwards (0.4) 0.8 (1.2) Other non-operating income (expense), net Total income (loss) reclassified, before tax (12.9) (7.5) 0.5 Income tax benefit (expense) 3.5 2.0 (0.1) Net income (loss) reclassified, net of tax $ (9.4) $ (5.5) $ 0.4 Amortization of defined benefit pension and other postretirement benefit plan items Prior service benefit (cost) $ 0.4 $ 0.3 $ 0.4 Other pension and postretirement benefits (costs), net Net actuarial gain (loss) and settlement 1.7 (7.4) 7.2 Other pension and postretirement benefits (costs), net Total income (loss) reclassified, before tax 2.1 (7.1) 7.6 Income tax benefit (expense) (0.5) 1.7 (2.4) Net income (loss) reclassified, net of tax $ 1.6 $ (5.4) $ 5.2 Other reclassifications from AOCI to Income India cumulative translation adjustment resulting from sale of disposal group $ (12.1) $ (7.5) $ — Other operating income (expense), net Net income (loss) reclassified, net of tax $ (12.1) $ (7.5) $ — Total income (loss) reclassified, net of tax $ (19.9) $ (18.4) $ 5.6 |
Share-Based Payments
Share-Based Payments | 12 Months Ended |
Dec. 31, 2022 | |
Share-Based Payment Arrangement [Abstract] | |
Share-Based Payments | Share-Based Payments We have one share-based compensation plan, the MCBC Incentive Compensation Plan (the "Incentive Compensation Plan"), as of December 31, 2022 and all outstanding awards fall under this plan. Incentive Compensation Plan We issue the following types of awards related to shares of Class B common stock to certain directors, officers and other eligible employees, pursuant to the Incentive Compensation Plan: RSUs, DSUs, PSUs and stock options. RSU awards are issued based upon the market value equal to the price of our stock at the date of the grant and generally vest over a period of three years. In 2022, 2021 and 2020, we granted 0.5 million, 0.6 million and 0.5 million RSUs, respectively, with a weighted-average market value of $52.05, $45.84 and $48.99 each, respectively. Prior to vesting, RSUs have no voting rights. DSU awards, under the Directors' Stock Plan pursuant to the Incentive Compensation Plan, are elections made by non-employee directors of MCBC that enable them to receive all or one-half of their annual cash retainer payments in our stock. The DSU awards are issued at the market value equal to the price of our stock at the date of the grant. The DSUs are paid in shares of stock upon termination of service. Prior to vesting, DSUs have no voting rights. In 2022, 2021 and 2020, we granted a small number of DSUs with a weighted-average market value of $51.80, $49.33 and $37.53 per share, respectively. PSU awards are granted with a target value established at the date of grant and vest upon completion of a service requirement. The settlement amount of the PSUs is determined based on market and performance metrics, which include our total shareholder return performance relative to the stock market index defined by each award and specified internal performance metrics designed to drive greater shareholder return. PSU compensation expense is based on fair values assigned to the market and performance metrics upon grant. The market metric is based upon a Monte Carlo model, with the market metric remaining constant throughout the vesting period of three years. The performance metric is based upon the market value equal to the price of our stock at the date of the grant for the 2022 award and a Monte Carlo model for all previous awards, varying based on a multiplier determined based on changing estimates of the performance metric projected attainment. During 2022, 2021 and 2020, we granted 0.3 million, 0.4 million and 0.3 million PSUs, respectively, each with a weighted-average fair value of $62.98, $45.71 and $52.60, respectively. Stock options are granted with an exercise price equal to the market value of a share of Class B common stock on the date of grant. Stock options have a term of ten years and generally vest over three years. During 2022, 2021 and 2020, we granted 0.3 million, 0.3 million and 0.4 million options, respectively, each with a weighted-average fair value of $12.16, $10.06 and $6.70, respectively. Certain RSU and PSU awards granted in 2020 and beyond entitle participants to receive dividends earned during the vesting period, subject to the performance, vesting and other conditions, including forfeiture, applicable to the respective awards. The following table presents the pre-tax and after-tax share based compensation expense. For the years ended December 31, 2022 December 31, 2021 December 31, 2020 (In millions) Pre-tax share-based compensation expense $ 33.6 $ 32.1 $ 24.2 Tax benefit (5.9) (5.5) (4.3) After-tax share-based compensation expense $ 27.7 $ 26.6 $ 19.9 As of December 31, 2022, there was $41.6 million of total unrecognized compensation cost from all share-based compensation arrangements granted under the Incentive Compensation Plan related to unvested awards. This total compensation expense is expected to be recognized over a weighted-average period of 1.8 years. RSUs and DSUs PSUs Units Weighted-average Units Weighted-average grant date fair value per unit (In millions, except per unit amounts) Non-vested as of December 31, 2021 1.3 $49.23 0.8 $49.47 Granted 0.5 $52.03 0.3 $62.98 Vested (0.4) $53.91 — $— Forfeited (0.1) $49.14 — $— Adjustment for performance results achieved — $— (0.2) $51.80 Non-vested as of December 31, 2022 1.3 $49.07 0.9 $53.54 The total intrinsic values of RSUs and DSUs vested during 2022, 2021 and 2020 were $17.2 million, $12.7 million and $14.8 million, respectively. Stock options Awards Weighted- Weighted- Aggregate (In millions, except per share amounts and years) Outstanding as of December 31, 2021 1.9 $63.15 4.8 $ 0.6 Granted 0.3 $52.18 Exercised (0.1) $44.12 Expired (0.6) $75.38 Outstanding as of December 31, 2022 1.5 $57.14 6.6 $ 2.1 Expected to vest as of December 31, 2022 0.6 $49.49 8.1 $ 1.4 Exercisable as of December 31, 2022 0.9 $62.43 5.5 $ 0.7 The total intrinsic values of exercises during 2022, 2021 and 2020 were $0.7 million, $0.9 million and $0.8 million, respectively. Total tax benefits realized, including excess tax benefits, from share-based awards vested or exercised during 2022, 2021 and 2020 was $2.9 million, $2.0 million and $3.1 million, respectively. The shares of Class B common stock to be issued under our equity plans are made available from authorized and unissued MCBC Class B common stock. As of December 31, 2022, there were 4.9 million shares of MCBC Class B common stock available for issuance under the Incentive Compensation Plan. The fair value of each option granted in 2022, 2021 and 2020 was determined on the date of grant using the Black-Scholes option-pricing model with the following weighted-average assumptions: For the years ended December 31, 2022 December 31, 2021 December 31, 2020 Risk-free interest rate 1.88% 0.79% 0.91% Dividend yield 2.86% 3.11% 4.40% Volatility range 30.91% - 33.85% 30.84% - 42.44% 25.09% - 26.31% Weighted-average volatility 31.65% 33.74% 25.40% Expected term (years) 5.7 5.6 5.5 Weighted-average fair value $12.16 $10.06 $6.70 The risk-free interest rates utilized for periods throughout the contractual life of the stock options are based on a zero-coupon U.S. Department of Treasury security yield at the time of grant. Expected volatility is based on a combination of historical and implied volatility of our stock. The expected term of stock options is estimated based upon observations of historical employee option exercise patterns and trends of those employees granted options in the respective year. The fair values of the market metric for each PSU granted in 2022, 2021 and 2020 and the performance metric for each PSU granted in 2021 and 2020 was determined on the date of grant using a Monte Carlo model to simulate total stockholder return for MCBC and peer companies with the following weighted-average assumptions. For the years ended December 31, 2022 December 31, 2021 December 31, 2020 Risk-free interest rate 1.58% 0.24% 0.84% Volatility range 22.65% - 45.30% 23.00% - 44.71% 15.21% - 45.75% Weighted-average volatility 35.93% 35.46% 26.02% Expected term (years) 2.8 2.8 2.8 Weighted-average fair market value $62.98 $45.71 $52.60 |
Other Operating Income (Expense
Other Operating Income (Expense), net | 12 Months Ended |
Dec. 31, 2022 | |
Unusual or Infrequent Items, or Both [Abstract] | |
Other Operating Income (Expense), net | Other Operating Income (Expense), net We have recorded incurred charges or realized benefits that we believe are significant to our current operating results warranting separate classification in other operating income (expense), net. As of December 31, 2022, we modified our presentation of the consolidated statements of operations to replace the former "Special items, net" line item with "Other operating income (expense), net." In addition, goodwill impairment, which had previously been included in "Special items, net," has been reclassified to a separate line titled "Goodwill impairment." The consolidated statements of operations for the years ended December 31, 2021 and December 31, 2020 were reclassified to reflect this change in presentation only. For the years ended December 31, 2022 December 31, 2021 December 31, 2020 (In millions) Restructuring Employee-related charges (1) $ (6.0) $ (11.7) $ (67.6) Asset abandonment and other restructuring costs (2)(3) (3.1) (25.9) (119.5) Intangible and tangible asset impairments, excluding goodwill (4) (36.3) (13.5) (71.5) Gains and (losses) on other disposals (5) 6.8 6.6 2.7 Other operating income (expense), net $ (38.6) $ (44.5) $ (255.9) (1) See the restructuring section within this footnote for a summary of our restructuring activities. (2) A significant portion of asset abandonment and other restructuring costs consists of accelerated depreciation, which is in excess of normal depreciation. There was no accelerated depreciation recorded to Other operating income (expense), net for the year ended December 31, 2022 and $15.4 million and $112.3 million recorded to Other operating income (expense), net for the years ended December 31, 2021 and 2020, respectively. During the years ended December 31, 2021 and December 31, 2020, we incurred accelerated depreciation related to the Montreal brewery closure which occurred during the fourth quarter of 2021. In addition, during the year ended December 31, 2021, we incurred accelerated depreciation for our Burtonwood and Japan locations and during the year ended December 31, 2020, we incurred accelerated depreciation for our Irwindale brewery. (3) In January 2020, we announced plans to cease production at our Irwindale, California brewery. On May 4, 2020, Pabst exercised its option to purchase the Irwindale brewery, including plant, equipment and machinery and the underlying land for $150 million and the transaction was completed in the fourth quarter of 2020. Charges associated with the brewery closure for the year ended December 31, 2020 totaled $117.7 million, excluding the fourth quarter of 2020 gain on sale of the brewery of $2.1 million. The charges for the year ended December 31, 2020 primarily consisted of accelerated depreciation, of $96.0 million and employee related costs of retention and severance of $16.5 million. (4) During the year ended December 31, 2022, we identified a triggering event related to the Truss joint venture asset group within our Americas segment and recognized an impairment loss of $28.6 million, of which $12.1 million was attributable to the noncontrolling interest. The asset group was measured at fair value primarily using a market approach with Level 3 inputs. During the year ended December 31, 2021, we recognized an impairment loss of $13.5 million related to the held for sale classification of the remaining portion of our India business. During the year ended December 31, 2020, we recorded aggregate impairment losses of $17.0 million related to certain regional craft brand definite-lived intangible assets and aggregate impairment losses of $22.6 million related to those regional craft brand definite-lived tangible assets in our Americas segment. The estimates and assumptions used to determine the fair value represent Level 3 measurements. In addition, we recognized an impairment loss of $30.0 million related to the held for sale classification of a disposal group within our India business, representing an insignificant part of our EMEA&APAC segment. The held for sale disposal group was measured at fair value on a nonrecurring basis using Level 3 inputs. The estimated fair value less cost to sell was determined using a market approach, based upon the expected net sales proceeds of the disposal group. Also in our EMEA&APAC segment, we incurred impairment losses as a result of small brewery closures in Europe as a result of the ongoing impact of the coronavirus pandemic. See Note 6, "Goodwill and Intangible Assets" for further discussion. (5) The former Alton brewery site in the U.K. was divided into tranches with one tranche selling in the third quarter of 2021, resulting in a gain of $11.4 million and another tranche selling in the third quarter of 2022 resulting in a gain of $4.9 million. In addition, in 2021 we recognized a loss of $2.7 million on the sale of a disposal group within our India business. The loss included the reclassification of the associated cumulative foreign currency translation adjustment losses from AOCI into other operating income (expense), net at the time of sale. See Note 15, "Accumulated Other Comprehensive Income (Loss)" for further details. Restructuring Activities During the fourth quarter of 2019, as part of our revitalization plan, we made the determination to establish Chicago, Illinois as our Americas segment operational headquarters, close our office in Denver, Colorado and consolidate certain administrative functions into our other existing office locations. The restructuring actions related to the revitalization plan were substantially complete as of December 31, 2021. After taking into account all changes in each of the business units, including the EMEA&APAC segment, the revitalization plan has reduced employment levels, in aggregate, by approximately 600 employees globally. In connection with these consolidation activities, we incurred cash and non-cash restructuring charges related to severance, retention and transition costs, employee relocation, non-cash asset related costs, lease impairment and exit costs in connection with our office lease in Denver, Colorado, and other transition activities, the majority of which were cash charges that we began recognizing in the fourth quarter of 2019. During 2021 and 2020, we recognized severance and retention cash charges of $4.0 million and $35.6 million, respectively, bringing the aggregate of such charges to approximately $81 million in total since the plan was initiated. Employee relocation charges were recognized in the period incurred and totaled $3.4 million and $11.0 million in 2021 and 2020, respectively. Additionally, during 2020, we recognized aggregate impairment losses of $7.6 million, related to the closure of the office facility in Denver, Colorado, including our lease right-of-use asset, in light of the sublease market outlook during such periods as a result of the coronavirus pandemic. No further impairment was recorded as a result of signing the sublease agreements during the second quarter of 2021. In addition to our revitalization plan, our restructuring also includes other strategic exit activities such as the disposal or wind down of certain brewery locations. We continually evaluate our cost structure and seek opportunities for further efficiencies and cost savings as part of ongoing and new initiatives. As such, we may incur additional restructuring related charges or adjustments to previously recorded charges in the future; however, we are unable to estimate the amount of charges at this time. The accrued restructuring balances as of December 31, 2022 represent expected future cash payments required to satisfy our remaining obligations, the majority of which we expect to be paid in the next 12 months. Americas EMEA&APAC Total (In millions) Balance as of December 31, 2019 $ 42.6 $ 4.5 $ 47.1 Charges incurred and changes in estimates 59.1 8.5 67.6 Payments made (77.3) (11.1) (88.4) Foreign currency and other adjustments 0.1 0.1 0.2 Balance as of December 31, 2020 $ 24.5 $ 2.0 $ 26.5 Charges incurred and changes in estimates 10.1 1.6 11.7 Payments made (23.7) (2.0) (25.7) Foreign currency and other adjustments — (0.1) (0.1) Balance as of December 31, 2021 $ 10.9 $ 1.5 $ 12.4 Charges incurred and changes in estimates (0.5) 6.0 5.5 Payments made (6.5) (1.3) (7.8) Foreign currency and other adjustments (0.3) 0.2 (0.1) Balance as of December 31, 2022 $ 3.6 $ 6.4 $ 10.0 |
Segment Reporting
Segment Reporting | 12 Months Ended |
Dec. 31, 2022 | |
Segment Reporting [Abstract] | |
Segment Reporting | Segment Reporting Our reporting segments are based on the key geographic regions in which we operate and include the Americas and EMEA&APAC segments. Our Americas segment operates in the U.S., Canada and various countries in the Caribbean, Latin and South America and our EMEA&APAC segment operates in Bulgaria, Croatia, Czech Republic, Hungary, Montenegro, the Republic of Ireland, Romania, Serbia, the U.K., various other European countries and certain countries within the Middle East, Africa and Asia Pacific. We also have certain activity that is not allocated to our segments, which has been reflected as “Unallocated” below. Reporting Segments Americas The Americas segment consists of our production, marketing and sales of our brands and other owned and licensed brands in the U.S., Canada and various countries in the Caribbean, Latin and South America. We have contract brewing agreements to brew, package, market, distribute and/or sell certain products in the Americas as well as joint venture arrangements in Canada to distribute and sell beer in Ontario and the western provinces of Canada. EMEA&APAC The EMEA&APAC segment consists of our production, marketing and sales of our primary brands as well as other owned and licensed brands in the U.K., Central Europe and various other European countries, along with certain countries within the Middle East, Africa and Asia Pacific. In our EMEA&APAC segment, we also have licensing agreements and distribution agreements with various other brewers. Unallocated "Unallocated" activity primarily includes financing-related costs such as interest expense and income, foreign exchange gains and losses on intercompany balances related to financing and other treasury-related activities, and the unrealized changes in fair value on our commodity swaps not designated in hedging relationships recorded within cost of goods sold, which are later reclassified when realized to the segment in which the underlying exposure resides. Additionally, only the service cost component of net periodic pension and OPEB cost is reported within each operating segment and all other components remain unallocated. Summarized Financial Information No single customer accounted for more than 10% of our consolidated net sales in 2022, 2021 or 2020. Consolidated net sales represent sales to third-party external customers less excise taxes. Inter-segment transactions impacting net sales and income (loss) before income taxes eliminate upon consolidation and are primarily related to the Americas segment royalties received from, and sales to the EMEA&APAC segment. The following tables represent net sales, equity income (loss), interest expense, interest income and reconciliations of amounts shown as income (loss) before income taxes to income (loss) attributable to MCBC. Year ended December 31, 2022 Americas EMEA&APAC Unallocated Inter-segment net sales eliminations Consolidated (In millions) Net sales $ 8,711.5 $ 2,005.2 $ — $ (15.7) $ 10,701.0 Equity income (loss) 4.7 — — — 4.7 Interest expense (1.5) (5.1) (244.0) — (250.6) Interest income 0.2 0.2 3.9 — 4.3 Income (loss) before income taxes $ 312.9 $ 61.0 $ (436.4) $ — $ (62.5) Income tax benefit (expense) (124.0) Net income (loss) (186.5) Net (income) loss attributable to noncontrolling interests 11.2 Net income (loss) attributable to MCBC $ (175.3) Year ended December 31, 2021 Americas EMEA&APAC Unallocated Inter-segment net sales eliminations Consolidated (In millions) Net sales $ 8,485.0 $ 1,802.3 $ — $ (7.6) $ 10,279.7 Interest expense (1.4) (5.8) (253.1) — (260.3) Interest income — 0.2 1.8 — 2.0 Income (loss) before income taxes $ 1,176.5 $ 32.9 $ 29.6 $ — $ 1,239.0 Income tax benefit (expense) (230.5) Net income (loss) 1,008.5 Net (income) loss attributable to noncontrolling interests (2.8) Net income (loss) attributable to MCBC $ 1,005.7 Year ended December 31, 2020 Americas EMEA&APAC Unallocated Inter-segment net sales eliminations Consolidated (In millions) Net sales $ 8,237.0 $ 1,431.9 $ — $ (14.9) $ 9,654.0 Interest expense (2.6) (5.7) (266.3) — (274.6) Interest income 0.2 0.3 2.8 — 3.3 Income (loss) before income taxes $ 1,080.5 $ (1,603.7) $ (120.7) $ — $ (643.9) Income tax benefit (expense) (301.8) Net income (loss) (945.7) Net (income) loss attributable to noncontrolling interests (3.3) Net income (loss) attributable to MCBC $ (949.0) The following table presents total assets and select cash flow information by segment. Assets Depreciation and amortization Capital expenditures As of December 31, For the years ended December 31, For the years ended December 31, 2022 2021 2022 2021 2020 2022 2021 2020 (In millions) Americas $ 22,242.7 $ 23,653.5 $ 526.9 $ 601.4 $ 743.0 $ 483.5 $ 405.0 $ 461.4 EMEA&APAC 3,625.6 3,965.5 157.9 184.7 179.0 177.9 117.6 113.4 Consolidated $ 25,868.3 $ 27,619.0 $ 684.8 $ 786.1 $ 922.0 $ 661.4 $ 522.6 $ 574.8 The following table presents net sales by geography, based on the location of the customer. For the years ended December 31, 2022 December 31, 2021 December 31, 2020 (In millions) Net sales to unaffiliated customers United States and its territories $ 7,405.6 $ 7,168.7 $ 7,016.1 Canada 1,165.3 1,188.4 1,111.6 United Kingdom 1,166.3 959.1 663.7 Other foreign countries (1) 963.8 963.5 862.6 Consolidated net sales $ 10,701.0 $ 10,279.7 $ 9,654.0 (1) Reflects net sales within certain countries in Europe, Latin America, South America, the Middle East, Africa and Asia. No individual country has total net sales exceeding 10% of total consolidated net sales. The following table presents net properties and operating ROU assets by geographic location. See Note 8, "Leases" for further information on our operating ROU assets and Note 5, "Properties" for further information on our net properties. As of December 31, 2022 December 31, 2021 (In millions) Net properties and operating ROU assets United States and its territories $ 2,444.6 $ 2,294.1 Canada 1,050.6 1,114.6 United Kingdom 365.4 383.2 Other foreign countries (1) 494.9 519.6 Consolidated net properties and operating ROU assets $ 4,355.5 $ 4,311.5 (1) Reflects net properties and operating ROU assets within certain countries in Europe, Latin America, South America, Africa and Asia. No individual country has total net properties or operating ROU assets exceeding 10% of total consolidated net properties or operating ROU assets, respectively. |
SCHEDULE II
SCHEDULE II | 12 Months Ended |
Dec. 31, 2022 | |
SEC Schedule, 12-09, Valuation and Qualifying Accounts [Abstract] | |
SCHEDULE II | SCHEDULE II MOLSON COORS BEVERAGE COMPANY AND SUBSIDIARIES VALUATION AND QUALIFYING ACCOUNTS (IN MILLIONS) Balance at Additions Deductions Foreign Balance at Allowance for obsolete supplies and inventory Year ended: December 31, 2022 $ 44.1 $ 169.9 $ (151.6) $ (1.5) $ 60.9 December 31, 2021 $ 38.4 $ 109.9 $ (103.8) $ (0.4) $ 44.1 December 31, 2020 $ 22.2 $ 70.6 $ (54.3) $ (0.1) $ 38.4 Deferred tax valuation account Year ended: December 31, 2022 $ 60.7 $ 20.6 $ (23.0) $ (1.1) $ 57.2 December 31, 2021 $ 62.2 $ 14.8 $ (16.2) $ (0.1) $ 60.7 December 31, 2020 $ 73.8 $ 31.8 $ (43.4) $ — $ 62.2 Deduction amounts related to inventories are write-offs of obsolete inventories and supplies. Deduction amounts related to the deferred tax valuation allowance are primarily due to the utilization of capital loss and operating loss carryforwards and re-evaluations of deferred tax assets. |
Basis of Presentation and Sum_2
Basis of Presentation and Summary of Significant Accounting Policies (Policies) | 12 Months Ended |
Dec. 31, 2022 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Changes to our Consolidated Statement of Operations | Changes to our Consolidated Statement of OperationsAs of December 31, 2022, we modified our presentation of the consolidated statements of operations to replace the former "Special items, net" line item with "Other operating income (expense), net." In addition, goodwill impairment, which had previously been included in "Special items, net," has been reclassified to a separate line titled "Goodwill impairment." The consolidated statement of operations for the years ended December 31, 2021 and December 31, 2020 were reclassified to reflect this change in presentation only. |
Government Assistance | Government Assistance We receive government assistance in the form of tax credits and grants, including tax credits from government agencies in certain jurisdictions around job creation and retention, as well as capital investment initiatives. This includes, but is not limited to, refundable and non-refundable property and income tax credits in various state and other local jurisdictions. We recognize amounts received from government assistance programs, including tax credits and grants, as a reduction to MG&A expenses in our consolidated financial statements, when it is probable we will receive the funds and have met the conditions, if any, required by the government assistance program. If we receive the government assistance at a point in time for services to be completed over time, the cash received is initially recorded in our consolidated balance sheet as other liabilities, and amortized as an offset to MG&A expenses over the service period of the agreement. No programs are individually material nor are the programs material in the aggregate. |
Principles of Consolidation | Principles of ConsolidationOur consolidated financial statements include our accounts and our majority-owned and controlled domestic and foreign subsidiaries, as well as certain VIEs for which we are the primary beneficiary. All intercompany accounts and transactions have been eliminated in consolidation. |
Use of Estimates | Use of Estimates Our consolidated financial statements are prepared in accordance with U.S. GAAP. These accounting principles require us to make certain estimates, judgments and assumptions. We believe that the estimates, judgments and assumptions used to determine certain amounts that affect the financial statements are reasonable, based on information available at the time they are made. To the extent there are differences between these estimates and actual results, our consolidated financial statements may be materially affected. |
Revenue Recognition | Revenue Recognition Our net sales represent the sale of beer, malt beverages and other adjacencies, net of excise tax. Sales are stated net of incentives, discounts and returns. Sales of products are for cash or otherwise agreed upon credit terms. Our payment terms vary by location and customer, however, the time period between when revenue is recognized and when payment is due is not significant. Our revenue generating activities have a single performance obligation and are recognized at the point in time when control transfers and our obligation has been fulfilled, which is when the related goods are shipped or delivered to the customer, depending upon the method of distribution and shipping terms. Where our products are sold under consignment arrangements, revenue is not recognized until control has transferred, which is when the product is sold to the end customer. Revenue is measured as the amount of consideration we expect to receive in exchange for the sale of our product. The cost of various programs, such as price promotions, rebates and coupons, are treated as a reduction of sales. In certain of our markets where legally permitted, we make cash payments to customers such as slotting or listing fees, or payments for other marketing or promotional activities. These cash payments are recorded as a reduction of revenue unless we receive a distinct good or service. Specifically, a good or service is considered distinct when it is separately identifiable from other promises in the contract, we receive a benefit from the good or service and the benefit is separable from the sale of our product to the customer. Certain payments made to customers are conditional on the achievement of volume targets, marketing commitments or both. If paid in advance, we record such payments as prepayments and amortize them over the relevant period to which the customer commitment is made (generally up to five years). When the payment is not for a distinct good or service, or fair value cannot be reasonably estimated, the amortization of the prepayment or the cost as incurred is recorded as a reduction of revenue. Where a distinct good or service is received and fair value can be reasonably estimated, the cost is included as MG&A expenses. The amounts deferred are reassessed regularly for recoverability over the contract period and are impaired where there is objective evidence that the benefits will not be realized or the asset is otherwise not recoverable. Separately, as discussed below, we analyze whether these advance payments contain a significant financing component for potential adjustment to the transaction price. Our primary revenue generating activity represents the sale of beer and other malt beverages to customers, including both domestic and exported product sales. Our customer could be a distributor, retail or on-premise outlet, depending on the market. The majority of our revenues are generated from brands that we own and brew ourselves; however, we also import or brew and sell certain non-owned partner brands under licensing and related arrangements. In addition, primarily in the U.K., we sell other beverage companies' products to on-premise customers to provide them with a full range of products for their retail outlets. We refer to this as the "factored brand business." Sales from this business are included in our net sales and cost of goods sold when ultimately sold. In the factored brand business, we normally purchase inventory, which includes excise taxes charged by the vendor, take orders from customers for such brands, negotiate with the customers on pricing and invoice customers for the product and related costs of delivery. In addition, we incur the risk of loss when we are in possession of the inventory and for the receivables due from the customers. Revenues for owned brands, partner and imported brands, as well as factored brands are recognized at the point in time when control is transferred to the customer as discussed above. Other Revenue Generating Activities We contract manufacture for other brewers in some of our markets. These contractual agreements require us to brew, package and ship certain brands for these brewers, who then sell the products to their own customers in their respective markets. Revenues under contract brewing arrangements are recognized when our obligation related to the finished product is fulfilled and control of the product transfers to these other brewers. We also have licensing agreements with third party partners who brew and distribute our products in various markets across our segments. Under these agreements, we are compensated based on the amount of products sold by our partners in these markets at an agreed upon royalty rate or profit percentage. We apply the sales-based royalty practical expedient to these licensing arrangements and recognize revenue as product is sold by our partners at the agreed upon rate. Disaggregation of Revenue We have evaluated our primary revenue generating activities under the disaggregation disclosure criteria outlined within the guidance and concluded that disclosure at the geographical segment level depicts how the nature, amount, timing and uncertainty of revenues and cash flows are affected by economic factors. We have also evaluated our other revenue generating activities and concluded that these activities are not material for separate disclosure. See Note 18, "Segment Reporting," for disclosure of revenues by geographic segment. Variable Consideration Our revenue generating activities include variable consideration which is recorded as a reduction of the transaction price based upon expected amounts at the time revenue for the corresponding product sale is recognized. For example, customer promotional discount programs are entered into with certain distributors for certain periods of time. The amount ultimately reimbursed to distributors is determined based upon agreed-upon promotional discounts which are applied to distributors' sales to retailers. Other common forms of variable consideration include volume rebates for meeting established sales targets, and coupons and mail-in rebates offered to the end consumer. The determination of the reduction of the transaction price for variable consideration requires that we make certain estimates and assumptions that affect the timing and amounts of revenue and liabilities recorded. We estimate this variable consideration, including analyzing for a potential constraint on variable consideration, by taking into account factors such as the nature of the promotional activity, historical information and current trends, availability of actual results and expectations of customer and consumer behavior. We do not have standard terms that permit return of product; however, in certain markets where returns occur we estimate the amount of returns as variable consideration based on historical return experience and adjust our revenue accordingly. Products that do not meet our high quality standards are returned by the customer or recalled and destroyed and are recorded as a reduction of revenue. The reversal of revenue is recorded upon determination that the product will be recalled and destroyed. We estimate the costs required to facilitate product returns and record them in cost of goods sold as required. For the years ended December 31, 2022, 2021 and 2020, adjustments to revenue from performance obligations satisfied in the prior period due to changes in estimates in variable consideration were immaterial. Significant Financing Component and Costs to Obtain Contracts In certain of our businesses where such practices are legally permitted, we make loans or advanced payments to retail outlets that sell our brands. For arrangements that do not span greater than one year, we apply the practical expedient available under ASC 606 and do not adjust the transaction price for the effects of a potential significant financing component. We further analyze arrangements that span greater than one year on an ongoing basis to determine whether a significant financing component exists. No such arrangements existed during the years ended December 31, 2022, 2021 and 2020. Advance payments to customers, where legally permitted, are deferred and amortized as a reduction to revenue over the expected period of benefit and tested for recoverability as appropriate. All other costs to obtain and fulfill contracts are expensed as incurred based on the nature, significance and expected benefit of these costs relative to the contract. Contract Assets and Liabilities We continually evaluate whether our revenue generating activities and advanced payment arrangements with customers result in the recognition of contract assets or liabilities. No such assets or liabilities existed as of December 31, 2022 or December 31, 2021. Separately, trade accounts receivable, including affiliate receivables, approximates receivables from contracts with customers. Shipping and Handling |
Excise Taxes | Excise TaxesExcise taxes remitted to tax authorities are government-imposed excise taxes on beer. Excise taxes are shown in a separate line item in the consolidated statements of operations as a reduction of sales. In the consolidated balance sheets, excise taxes are generally recognized as a current liability within accounts payable and other current liabilities, with the liability subsequently reduced when the taxes are remitted to the tax authority. In cases where excise taxes are prepaid, they are recorded within other current assets. |
Cost of Goods Sold | Cost of Goods SoldOur cost of goods sold includes costs we incur to make and ship beer and other beverages. These costs include brewing materials, such as barley, hops and various grains. Packaging materials, such as glass bottles, aluminum cans, cardboard and paperboard are also included in our cost of goods sold. Additionally, our cost of goods sold include both direct and indirect labor, shipping and handling including freight costs, utilities, maintenance costs, warehousing costs, purchasing and receiving costs, depreciation, promotional packaging, other manufacturing overheads and costs to purchase factored and other non-owned brands from suppliers, as well as the estimated cost to facilitate product returns. |
Marketing, General and Administrative Expenses | Marketing, General and Administrative Expenses Our MG&A expenses include marketing expenses, including the direct costs related to the selling of a product or brand, media advertising (television, radio, digital, print), tactical advertising (signs, banners, point-of-sale materials) and promotion costs on both local and national levels within our operating segments. The creative portion of our advertising activities is expensed as incurred. Production costs of advertising and promotional materials are expensed when the advertising is first run. Included in MG&A is total marketing and advertising expenses which were approximately $1.0 billion, $1.1 billion and $0.9 billion in 2022, 2021 and 2020, respectively. This classification also includes general and administrative costs for functions such as finance, legal, human resources and information technology. These costs primarily consist of labor and outside services, as well as bad debt expense related to our allowance for doubtful accounts. Unless capitalization is allowed or required by U.S. GAAP, legal costs are expensed when incurred. These costs also include our marketing and sales organizations, including labor and other overheads. This line item additionally includes amortization costs associated with intangible assets, as well as certain depreciation costs related to non-production equipment and share-based compensation. Share-based compensation is recognized using a straight-line method over the vesting period of the awards. We include estimated forfeitures expected to occur when calculating share-based compensation expense. Our share-based compensation |
Other Operating Income (Expense), net | Other Operating Income (Expense), net Our other operating income (expense) items represent charges incurred or benefits realized that we believe are significant to our current operating results warranting separate classification; specifically, such items are considered to be one of the following: • restructuring charges, including atypical employee-related charges, asset abandonment-related losses, fees on termination of significant operating agreements and other related exit or disposal charges; • intangible and tangible asset impairments, excluding goodwill; • gains and (losses) on disposal of investments; and • other significant items deemed to warrant separate classification within operating income |
Interest Expense, net | Interest Expense, net Our interest costs are associated with borrowings to finance our operations and acquisitions. Interest earned on our cash and cash equivalents across our business is recorded as interest income. |
Other Non-Operating Income (Expense), net | Other Non-Operating Income (Expense), netOur other non-operating income (expense), net classification primarily includes gains and losses associated with activities not directly related to our operations. For instance, aggregate unrealized and realized foreign exchange gains and losses resulting from the remeasurement and settlement of foreign-denominated monetary assets and liabilities, as well as certain gains or losses on sales of non-operating assets and the mark-to-market activity associated with warrants and other equity securities are classified in this line item. These gains and losses are reported in the operating segment in which they occur; however, foreign exchange gains and losses on intercompany balances related to financing and other treasury-related activities remain unallocated. The initial recording of foreign-denominated transactions are classified based on the nature of the transaction, with the unrealized or realized foreign exchange gains or losses resulting from the subsequent remeasurement of the monetary asset or liability, and its ultimate settlement, classified in other non-operating income (expense), net. |
Income Taxes | Income Taxes Deferred income taxes are provided for the temporary differences between the financial reporting basis and the tax basis of our assets, liabilities and certain unrecognized gains and losses recorded in AOCI. We apply the intraperiod tax allocation rules to allocate our provision for income taxes between continuing operations and other categories of earnings, such as other comprehensive income (loss), when we meet the criteria prescribed by U.S. GAAP. |
Other Comprehensive Income (Loss) | Other Comprehensive Income (Loss) OCI represents income and losses for the reporting period, including the related tax impacts, which are excluded from net income (loss) and recognized directly within AOCI as a component of equity. OCI also includes amounts reclassified to income during the reporting period that were previously recognized within AOCI. Amounts remaining within AOCI are expected to be |
Earnings Per Share | Earnings Per Share Basic EPS is computed using the weighted-average number of shares of common stock outstanding during the period. Diluted EPS includes the additional dilutive effect of our potentially dilutive securities, which include RSUs, DSUs, PSUs and stock options. The dilutive effects of our potentially dilutive securities are calculated using the treasury stock method. Our calculation of weighted-average shares includes Class A common stock and Class B common stock and Class A exchangeable shares and Class B exchangeable shares. All classes of stock have in effect the same dividend rights and share equitably in undistributed earnings. Holders of Class A common stock receive dividends only to the extent dividends are declared and paid to holders of Class B common stock. See Note 14, "Stockholders' Equity" for further discussion of the Class A common stock and Class B common stock and Class A exchangeable shares and Class B exchangeable shares. We have no unvested outstanding equity share awards that contain non-forfeitable rights to dividends. |
Cash and Cash Equivalents and Non-Cash Activity | Cash and Cash EquivalentsCash consists of cash on hand and bank deposits. Cash equivalents represent highly liquid investments with original maturities of three months or less. Our cash deposits are maintained with multiple, reputable financial institutions. |
Accounts Receivables and Notes Receivable | Accounts Receivable and Notes ReceivableWe record accounts and notes receivable at net realizable value. This carrying value includes an appropriate allowance for estimated uncollectible amounts to reflect any loss anticipated on the accounts and notes receivable balances. We calculate this allowance based on our country-specific history of write-offs, level of past-due accounts based on the contractual terms of the receivables and our relationships with and the economic status of our customers, which may be impacted by current macroeconomic and regulatory factors specific to the country of origin. This methodology takes into consideration historical loss experience and current and forecasted changes in cash flows based on internal and external information. |
Inventories | InventoriesInventories are stated at the lower of cost or net realizable value. Cost is determined by the first-in, first-out ("FIFO") method. We regularly assess the shelf-life of our inventories and reserve for those inventories when it becomes apparent the product will not be sold within our freshness specifications. In addition, we reserve for those inventories associated with discontinued SKUs or instances where we change our packaging. |
Other current assets | Other current assetsOther current assets include prepaid assets, implementation costs incurred on cloud computing arrangements, maintenance and operating supplies, promotion materials and derivative assets that are expected to be recognized or realized within the next 12 months. Maintenance and operating supplies include our inventories of spare parts, which are kept on hand for repairs and maintenance of machinery and equipment. The majority of spare parts within our business include motors, fillers and other components that are required to maintain a normal level of production in the event that expected maintenance and/or repairs are required. These parts are inventoried within current assets as they are reasonably expected to be used during the normal operating cycle of the business and are reserved for excess and obsolescence, as appropriate. |
Properties | Properties Properties are stated at original cost less accumulated depreciation. Depreciation is recorded using the straight-line method over the estimated useful lives of the assets, which are reviewed periodically and have the following ranges: buildings and improvements: 20-40 years; production and office equipment 3-25 years; and software: 3-5 years. Land is not depreciated and construction in progress is not depreciated until ready for service. Costs of enhancements or modifications that substantially extend the capacity or useful life of an asset are capitalized and depreciated accordingly. Ordinary repairs and maintenance are expensed as incurred. When property is sold or otherwise disposed of, the cost and accumulated depreciation are removed from our consolidated balance sheets and the resulting gain or loss, if any, is reflected in our consolidated statements of operations. Long-lived assets are evaluated for impairment whenever events or changes in circumstances indicate the carrying value of an asset (or asset group) may not be recoverable. Our asset groups are generally identified at the segment level with the exception of certain craft breweries or other locations which may operate on a more stand-alone basis, such as our Truss LP joint venture. Returnable containers are recorded at acquisition cost and consist of returnable bottles, kegs, pallets and crates that are both in our direct control within our breweries, warehouses and distribution facilities and those that we indirectly control in the market through our agreements with our customers and other brewers and for which a deposit is received. The deposits received on our returnable containers in the market are recorded as deposit liabilities, included as current liabilities within accounts payable and other current liabilities in the consolidated balance sheets. We estimate that the loss, breakage and deterioration of our returnable containers is comparable to the depreciation calculated on an estimated useful life of up to 4 years for bottles, 5 years for pallets, 7 years for crates and 15 years for returnable kegs. We also own and maintain other equipment in the market related to delivery of our products to end consumers, for example on-premise dispense equipment and refrigeration units. This equipment is recorded at acquisition cost and depreciated over lives of up to 7 years, depending on the market, reflecting the use of the equipment, as well as the loss and deterioration of the asset. The costs of acquiring or developing internal-use computer software, including directly-related payroll costs for internal resources, are capitalized and classified within properties. Software maintenance and training costs are expensed in the period incurred. Implementation costs incurred in hosting arrangements that are service contracts are capitalized within other assets and are not material. Properties held under finance lease are depreciated using the straight-line method over the estimated useful life or the lease term, whichever is shorter, and the related depreciation is included in depreciation expense. Finance lease assets for which ownership is transferred at the end of the lease, or there is a purchase option that we are reasonably certain to exercise, are amortized over the useful life that would be assigned if the asset were owned. |
Goodwill and Other Intangible Assets | Goodwill and Other Intangible AssetsGoodwill is allocated to the reporting unit in which the business that created the goodwill resides. A reporting unit is an operating segment, or a business unit one level below that operating segment, for which discrete financial information is prepared and regularly reviewed by segment management. As of the date of the completion of our 2022 impairment testing, we have concluded that we have two reporting units, Americas and EMEA&APAC. As required, we evaluate the carrying value of our goodwill at the reporting unit level and indefinite-lived intangible assets for impairment at least annually or when an interim triggering event occurs that may indicate potential impairment. Our annual test is performed as of the first day of our fiscal fourth quarter, October 1. The testing of goodwill and indefinite-lived intangible assets uses estimates and assumptions affected by factors such as economic and industry conditions along with changes in operating performance. The evaluation involves comparing the reporting unit or indefinite-lived intangible asset's fair value to its carrying value. If the fair value exceeds its respective carrying value, then we conclude that no impairment has occurred. If the carrying value exceeds its fair value, we would recognize an impairment loss in an amount equal to the excess up to the total amount of goodwill allocated to that reporting unit or balance of the respective indefinite-lived intangible asset. We continuously monitor the performance of our other definite-lived intangible assets and evaluate for impairment when evidence exists that certain triggering events or changes in circumstances indicate that the carrying amount of these assets may not be recoverable. Significant judgments and assumptions are required in such impairment evaluations. Definite-lived intangible assets are stated at cost less accumulated amortization. Amortization is recorded using the straight-line method over the estimated lives of the assets as this approximates the pattern in which the assets economic benefits are consumed. Goodwill impairments are recorded to the "Goodwill impairment" line item on the consolidated statement of operations whereas impairments of intangible assets are recorded in the "Other operating income (expense), net" line item. |
Equity Method Investments | Equity Method InvestmentsWe apply the equity method of accounting to investments that we do not control but where we exercise significant influence or VIEs for which we are not the primary beneficiary. We use the cumulative earnings approach for determining cash flow presentation of cash distributions received from equity method investments. Distributions received are included in our consolidated statements of cash flows as operating activities, unless the cumulative distributions exceed our portion of the cumulative equity in the net earnings of the equity method investment, in which case the excess distributions are deemed to be returns of the investment and are classified as investing activities in our consolidated statements of cash flows. |
Derivative Hedging Instruments | Derivative Hedging Instruments We use derivatives as part of our normal business operations to manage our exposure to fluctuations in interest rates, foreign currency exchange, commodity prices, production and packaging material costs and for other strategic purposes related to our core business. We enter into derivatives for risk management purposes only, including derivatives designated in hedge accounting relationships as well as those derivatives utilized as economic hedges. We do not enter into derivatives for trading or speculative purposes. We recognize our derivatives on the consolidated balance sheets as assets or liabilities at fair value and classify them in either current or non-current assets or liabilities based on each contract's respective unrealized gain or loss position and each contract's respective maturity. Our policy is to present all derivative balances on a gross basis, without regard to counterparty master netting agreements or similar arrangements. Further, our current derivative agreements do not allow us to net positions with the same counterparty and therefore, we present our derivative positions gross in our consolidated balance sheets. Changes in fair values of outstanding cash flow and net investment hedges are recorded in OCI, until earnings are affected by the variability of cash flows of the underlying hedged item or the sale of the underlying net investment, respectively. Effective cash flow hedges offset the gains or losses recognized on the underlying exposure in the consolidated statements of operations, or for net investment hedges, the foreign exchange translation gain or loss recognized in AOCI. Changes in fair value of outstanding fair value hedges and the offsetting changes in fair value of the hedged item are recognized in earnings. Changes in fair value of the derivative attributable to components allowed to be excluded from the assessment of hedge effectiveness are deferred in AOCI and recognized in earnings over the life of the hedge. We record realized gains and losses from derivative instruments in the same financial statement line item as the hedged item/forecasted transaction. Changes in unrealized gains and losses for derivatives not designated in a hedge accounting relationship are recorded directly in earnings each period and are also recorded in the same financial statement line item as the hedged item/forecasted transaction. Cash flows from the settlement of derivatives, including both economic hedges and those designated in hedge accounting relationships, appear in the consolidated statements of cash flows in the same categories as the cash flows of the hedged item unless the instruments are deemed to contain an other-than-insignificant financing element, in which case the cash flows related to this instrument will be classified as financing activities. In accordance with authoritative accounting guidance, we do not record the fair value of derivatives for which we have elected the Normal Purchase Normal Sale ("NPNS") exemption. We account for these contracts on an accrual basis, recording realized settlements related to these contracts in the same financial statement line items as the corresponding transaction. |
Leases | Leases We enter into contractual arrangements for the utilization of certain non-owned assets, primarily real estate and equipment, which are evaluated as finance or operating leases upon commencement and are accounted for accordingly. Specifically, under Accounting Standards Codification (“ASC”) Topic 842, Leases, a contract is or contains a lease when, (1) the contract contains an explicitly or implicitly identified asset and (2) the customer obtains substantially all of the economic benefits from the use of that underlying asset and directs how and for what purpose the asset is used during the term of the contract in exchange for consideration. We assess whether an arrangement is or contains a lease at inception of the contract. For all contractual arrangements deemed to be leases (other than short-term leases, which have a duration of one year or less), as of the lease commencement date, we recognize on the consolidated balance sheet a liability for our obligation related to the lease and a corresponding asset representing our right to use the underlying asset over the period of use. For leases that qualify as short-term leases, we have elected, for all classes of underlying assets, to not apply the balance sheet recognition requirements of ASC 842, and instead, we recognize the lease payments in the consolidated statements of operations on a straight-line basis over the lease term. We have also made the election, for our existing real estate and equipment classes of underlying assets, to account for lease and non-lease components as a single lease component. Our leases have remaining lease terms of up to approximately 16 years. Certain of our lease agreements contain options to extend or early terminate the agreement. The lease term used to calculate the right-of-use ("ROU") asset and lease liability at commencement includes the impacts of options to extend or terminate the lease when it is reasonably certain that we will exercise that option. When determining whether it is reasonably certain that we will exercise an option at commencement, we consider various existing economic factors, including real estate strategies, the nature, length and terms of the agreement, as well as the uncertainty of the condition of leased equipment at the end of the lease term. Based on these determinations, we generally conclude that the exercise of renewal options would not be reasonably certain in determining the lease term at commencement. Assumptions made at the commencement date are re-evaluated upon occurrence of certain events requiring a lease modification. Additionally, for certain equipment leases involving groups of similar leased assets with similar lease terms, we apply a portfolio approach to effectively account for the operating lease right-of-use assets and liabilities. The discount rate used to calculate the present value of the future minimum lease payments is the rate implicit in the lease, when readily determinable. As the rate implicit in the lease is rarely readily determinable, we use our incremental borrowing rate relative to the leased asset in all other cases. Certain of our leases include variable payments, primarily for items such as property taxes, insurance, maintenance and other operating expenses associated with leased assets. These variable payments are excluded from the measurement of our lease assets and liabilities and are recognized in the period in which the obligation for those payments is incurred. Our lease agreements do not contain any material residual value guarantees or material restrictive covenants. |
Pension and Postretirement Benefits | Pension and Postretirement Benefits We maintain retirement plans for the majority of our employees. We offer different types of plans within each segment, including defined benefit plans, defined contribution plans and OPEB plans. Each plan is managed locally and in accordance with respective local laws and regulations. Our equity investments, BRI and BDL, maintain defined benefit, defined contribution and OPEB plans as well. We recognize the underfunded or overfunded status of a defined benefit pension and OPEB plan as an asset or liability in the consolidated balance sheets. The funded status of a plan, measured as the difference between the fair value of plan assets and the projected benefit obligation, and the related net periodic pension cost are calculated using a number of significant actuarial assumptions. Changes in net periodic pension cost and funding status may occur in the future due to changes in these assumptions. We use the fair value approach to calculate the market-related value of pension plan assets used to determine net periodic pension cost, which includes measuring the market-related value of plan assets at fair value for purposes of determining the expected return on plan assets and amount of gain or loss subject to amortization. Projected benefit obligation is the actuarial present value as of the measurement date of all benefits attributed by the plan benefit formula to employee service rendered before the measurement date using assumptions as to future compensation levels and years of service if the plan benefit formula is based on those future compensation levels and years of service. Accumulated benefit obligation is the actuarial present value of benefits (whether vested or unvested) attributed by the plan benefit formula to employee service rendered before the measurement date and based on employee service and compensation, if applicable, prior to that date. Accumulated benefit obligation differs from projected benefit obligation in that it includes no assumption about future compensation levels and years of service. |
Fair Value Measurements | Fair Value Measurements The carrying amounts of our cash and cash equivalents, accounts receivable, accounts payable and other current liabilities approximate fair value as recorded due to the short-term nature of these instruments. In addition, the carrying amounts of our trade loan receivables, net of allowances, approximate fair value. The fair value of derivatives is estimated by discounting the estimated future cash flows utilizing observable market interest, foreign exchange and commodity rates adjusted for non-performance credit risk associated with our counterparties (assets) or with MCBC (liabilities), as appropriate. See Note 10, "Derivative Instruments and Hedging Activities" for additional information. Based on current market rates for similar instruments, the fair value of long-term debt is presented in Note 9, "Debt." U.S. GAAP guidance for fair value includes a hierarchy that prioritizes fair value measurements based on the types of inputs used for the various valuation techniques (market approach, income approach and cost approach). Our financial assets and liabilities are measured using inputs from the three levels of the fair value hierarchy. The three levels of the hierarchy are as follows: Level 1—Inputs are unadjusted quoted prices in active markets for identical assets or liabilities that we have the ability to access at the measurement date. Level 2—Inputs include quoted prices for similar assets and liabilities in active markets, quoted prices for identical or similar assets or liabilities in markets that are less active, inputs other than quoted prices that are observable for the asset or liability (i.e., interest rates, yield curves, etc.), and inputs that are derived principally from, or corroborated by, observable market data by correlation or other means (market corroborated inputs). Level 3—Unobservable inputs that reflect the assumptions that we believe market participants would use in pricing the asset or liability. We develop these inputs based on the best information available, including our own data. |
Foreign Currency | Foreign Currency Assets and liabilities recorded in foreign currencies that are the functional currencies for the respective operations are translated at the prevailing exchange rate at the balance sheet date. Translation adjustments resulting from this process are reported as a separate component of OCI. Gains and losses from foreign currency transactions are included in earnings for the period. Revenue and expenses are translated at the average exchange rates during the respective period throughout the year. |
New Accounting Pronouncements Recently and Not Yet Adopted | New Accounting Pronouncements Recently Adopted In March 2020, the FASB issued authoritative guidance which provides optional expedients and exceptions for applying U.S. GAAP to contracts, hedging relationships and other transactions affected by reference rate reform if certain criteria are met. The amendments apply only to contracts, hedging relationships and other transactions that reference LIBOR or another reference rate expected to be discontinued because of reference rate reform and was effective for all entities upon issuance on March 12, 2020 through December 31, 2022. Accounting Standards Update ("ASU") 2022-06, Reference Rate Reform (Topic 848): Deferral of the Sunset Date of Topic 848 , defers the expiration date of Topic 848 to December 31, 2024 to realign with the revised cessation date for LIBOR. The guidance permits a company to elect certain optional expedients and exceptions when affected by the changes in reference rate reform. We have elected to adopt optional expedients impacting our derivative instruments with maturity dates extending beyond the expected discontinuance date of LIBOR. In addition, in October 2021, we amended our revolving credit facility to replace LIBOR with designated replacement rates for any future borrowings denominated in EUR or GBP. The partial adoption of, and future elections under ASU 2020-04, Reference Rate Reform (Topic 848): Facilitation of the Effects of Reference Rate Reform on Financial Reporting , and ASU 2021-01, Reference Rate Reform (Topic 848): Scope , did not and are not expected to have a material impact on our accounting policies or consolidated financial statements. We will continue to evaluate the impact of reference rate reform on our other contracts and assess the impacts of adopting incremental portions of this guidance on our financial statements. In November 2021, the FASB issued authoritative guidance intended to provide consistent and transparent disclosures around government assistance by requiring disclosures of the type of government assistance, our method of accounting for the government assistance and the effect on our financial statements. We adopted this guidance in our annual report for the year ended December 31, 2022. None of the programs in which we receive government assistance are individually material nor are they material in the aggregate. See Note 1, "Basis of Presentation and Summary of Significant Accounting Policies" for additional information on our government assistance. New Accounting Pronouncements Not Yet Adopted In September 2022, the FASB issued authoritative guidance intended to provide consistent and transparent disclosures for a buyer in a supplier finance program by requiring disclosures of key program terms, the amount of obligations that have been confirmed as valid with the finance provider that are deemed outstanding as of the end of the period, a description of the financial line item in which this unpaid balance resides and a rollforward of the obligations including the amount of obligations confirmed and paid. This guidance, with the exception of the rollforward disclosure requirement, is effective for us starting with the first quarter of 2023 and is required to be applied retrospectively. The rollforward disclosure requirement is effective for us in our annual report for the year ending December 31, 2024 and is required to be applied prospectively. While early adoption of this guidance is permitted, we plan to adopt as required with all information except for the rollforward disclosure requirement to be disclosed starting with the first quarter of 2023. We expect the guidance to have an impact on disclosures only as the guidance does not impact recognition or measurement of such programs. |
Segment Reporting | Our reporting segments are based on the key geographic regions in which we operate and include the Americas and EMEA&APAC segments. Our Americas segment operates in the U.S., Canada and various countries in the Caribbean, Latin and South America and our EMEA&APAC segment operates in Bulgaria, Croatia, Czech Republic, Hungary, Montenegro, the Republic of Ireland, Romania, Serbia, the U.K., various other European countries and certain countries within the Middle East, Africa and Asia Pacific. We also have certain activity that is not allocated to our segments, which has been reflected as “Unallocated” below. |
Investments (Tables)
Investments (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Equity Method Investments and Joint Ventures [Abstract] | |
Summary of Transactions with Affiliates | Amounts due from and due to affiliates as of December 31, 2022 and December 31, 2021, respectively, are as follows: Amounts due from affiliates Amounts due to affiliates December 31, 2022 December 31, 2021 December 31, 2022 December 31, 2021 (In millions) BRI $ 4.7 $ 3.3 $ (0.3) $ 0.4 BDL 0.2 6.2 — 3.1 Other 5.4 6.7 1.3 0.6 Total $ 10.3 $ 16.2 $ 1.0 $ 4.1 |
Schedules of Consolidated Investments | The following summarizes the assets and liabilities of our consolidated VIEs (including noncontrolling interests): As of December 31, 2022 December 31, 2021 Total Assets Total Liabilities Total Assets Total Liabilities (In millions) RMMC/RMBC $ 228.2 $ 21.2 $ 204.9 $ 19.1 Other $ 43.3 $ 16.1 $ 70.8 $ 14.8 |
Inventories (Tables)
Inventories (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Inventory Disclosure [Abstract] | |
Schedule of Inventory | As of December 31, 2022 December 31, 2021 (In millions) Finished goods $ 269.1 $ 351.5 Work in process 71.9 71.8 Raw materials 290.4 271.2 Packaging materials 161.5 110.2 Inventories, net $ 792.9 $ 804.7 |
Properties (Tables)
Properties (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Property, Plant and Equipment [Abstract] | |
Schedule of Property, Plant and Equipment | As of December 31, 2022 December 31, 2021 (In millions) Land and improvements $ 355.9 $ 355.9 Buildings and improvements 1,205.5 1,225.1 Production and office equipment 4,897.3 4,858.5 Software 533.3 507.1 Construction in progress 497.4 335.2 Other 395.3 417.8 Total properties cost 7,884.7 7,699.6 Less: accumulated depreciation (3,661.9) (3,507.2) Properties, net $ 4,222.8 $ 4,192.4 |
Goodwill and Intangible Assets
Goodwill and Intangible Assets (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule of changes in goodwill | The changes in the gross carrying value of goodwill and accumulated impairment losses are presented in the table below by segment. Americas EMEA&APAC (1) Consolidated (In millions) Gross carrying value of goodwill $ 6,846.4 $ 1,569.1 $ 8,415.5 Accumulated impairment losses (695.4) (1,569.1) (2,264.5) Balance as of December 31, 2020 $ 6,151.0 $ — $ 6,151.0 Foreign currency translation, net 1.6 — 1.6 Gross carrying value of goodwill 6,852.9 1,517.2 8,370.1 Accumulated impairment losses (700.3) (1,517.2) (2,217.5) Balance as of December 31, 2021 $ 6,152.6 $ — $ 6,152.6 Impairments (845.0) — (845.0) Foreign currency translation, net (15.7) — (15.7) Gross carrying value of goodwill 6,790.4 1,387.6 8,178.0 Accumulated impairment losses (1,498.5) (1,387.6) (2,886.1) Balance as of December 31, 2022 $ 5,291.9 $ — $ 5,291.9 |
Schedule of finite-lived intangible assets | The following table presents details of our intangible assets, other than goodwill, as of December 31, 2022: Useful life Gross Accumulated Net (Years) (In millions) Intangible assets subject to amortization Brands 10 - 50 $ 4,861.1 $ (1,416.7) $ 3,444.4 License agreements and distribution rights 15 - 20 200.0 (108.0) 92.0 Other 5 - 40 88.8 (27.7) 61.1 Intangible assets not subject to amortization Brands Indefinite 8,148.6 — 8,148.6 Distribution networks Indefinite 746.4 — 746.4 Other Indefinite 307.6 — 307.6 Total $ 14,352.5 $ (1,552.4) $ 12,800.1 The following table presents details of our intangible assets, other than goodwill, as of December 31, 2021: Useful life Gross Accumulated Net (Years) (In millions) Intangible assets subject to amortization Brands 10 - 50 $ 5,081.8 $ (1,267.1) $ 3,814.7 License agreements and distribution rights 15 - 20 206.8 (107.2) 99.6 Other 3 - 40 98.5 (32.0) 66.5 Intangible assets not subject to amortization Brands Indefinite 8,197.9 — 8,197.9 Distribution networks Indefinite 800.5 — 800.5 Other Indefinite 307.6 — 307.6 Total $ 14,693.1 $ (1,406.3) $ 13,286.8 |
Schedule of indefinite-Lived intangible assets | The following table presents details of our intangible assets, other than goodwill, as of December 31, 2022: Useful life Gross Accumulated Net (Years) (In millions) Intangible assets subject to amortization Brands 10 - 50 $ 4,861.1 $ (1,416.7) $ 3,444.4 License agreements and distribution rights 15 - 20 200.0 (108.0) 92.0 Other 5 - 40 88.8 (27.7) 61.1 Intangible assets not subject to amortization Brands Indefinite 8,148.6 — 8,148.6 Distribution networks Indefinite 746.4 — 746.4 Other Indefinite 307.6 — 307.6 Total $ 14,352.5 $ (1,552.4) $ 12,800.1 The following table presents details of our intangible assets, other than goodwill, as of December 31, 2021: Useful life Gross Accumulated Net (Years) (In millions) Intangible assets subject to amortization Brands 10 - 50 $ 5,081.8 $ (1,267.1) $ 3,814.7 License agreements and distribution rights 15 - 20 206.8 (107.2) 99.6 Other 3 - 40 98.5 (32.0) 66.5 Intangible assets not subject to amortization Brands Indefinite 8,197.9 — 8,197.9 Distribution networks Indefinite 800.5 — 800.5 Other Indefinite 307.6 — 307.6 Total $ 14,693.1 $ (1,406.3) $ 13,286.8 |
Schedule of estimated amortization expense related to intangible assets | Based on foreign exchange rates as of December 31, 2022, the estimated future amortization expense of intangible assets is as follows: Year Amount (In millions) 2023 $ 204.1 2024 $ 202.7 2025 $ 202.7 2026 $ 184.2 2027 $ 119.8 |
Accounts Payable and Other Cu_2
Accounts Payable and Other Current Liabilities (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Payables and Accruals [Abstract] | |
Accrued Expenses and Other Liabilities | As of December 31, 2022 December 31, 2021 (In millions) Accounts payable and accrued trade payables $ 2,068.2 $ 2,098.1 Accrued compensation 249.2 243.7 Accrued excise and other non-income related taxes 239.9 242.6 Accrued interest 87.6 91.4 Returnable container deposit liabilities 116.8 114.9 Operating leases 44.7 45.4 Other (1) 171.9 271.2 Accounts payable and other current liabilities $ 2,978.3 $ 3,107.3 |
Leases (Tables)
Leases (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Leases [Abstract] | |
Components of Lease Expense | For the years ended December 31, 2022, December 31, 2021 and December 31, 2020, lease expense (including immaterial short-term and variable lease costs) was as follows. For the years ended December 31, 2022 December 31, 2021 December 31, 2020 (In millions) Operating lease expense $ 72.5 $ 73.2 $ 71.4 Finance lease expense 9.5 10.4 11.5 Total lease expense $ 82.0 $ 83.6 $ 82.9 |
Supplemental Cash Flow Information | Supplemental cash flow information related to leases for the years ended December 31, 2022, December 31, 2021 and December 31, 2020 was as follows. For the years ended December 31, 2022 December 31, 2021 December 31, 2020 (In millions) Cash paid for amounts included in the measurements of lease liabilities Operating cash flows for operating leases $ 52.5 $ 56.8 $ 53.2 Operating cash flows for finance leases $ 3.6 $ 4.5 $ 7.6 Financing cash flows for finance leases $ 4.4 $ 3.6 $ 34.5 Supplemental non-cash information on right-of-use assets obtained in exchange for new lease liabilities Operating leases $ 63.9 $ 34.0 $ 28.5 Finance leases $ 3.8 $ 7.5 $ 5.4 |
Supplemental Balance Sheet Information | Supplemental balance sheet information related to leases as of December 31, 2022 and December 31, 2021 was as follows: As of December 31, 2022 December 31, 2021 Balance Sheet Classification (In millions) Operating Leases Operating lease right-of-use assets Other assets $ 132.7 $ 119.1 Current operating lease liabilities Accounts payable and other current liabilities $ 44.7 $ 45.4 Non-current operating lease liabilities Other liabilities 99.3 87.8 Total operating lease liabilities $ 144.0 $ 133.2 Finance Leases Finance lease right-of-use assets Properties, net $ 50.2 $ 61.5 Current finance lease liabilities Current portion of long-term debt and short-term borrowings $ 5.3 $ 4.6 Non-current finance lease liabilities Long-term debt 56.2 62.6 Total finance lease liabilities $ 61.5 $ 67.2 The weighted-average remaining lease term and discount rate as of December 31, 2022 are as follows: Weighted-Average Remaining Lease Term (Years) Weighted-Average Discount Rate Operating leases 4.9 4.0% Finance leases 10.8 6.3% |
Maturities of Finance Lease Liabilities | Based on foreign exchange rates as of December 31, 2022, maturities of lease liabilities were as follows: Operating Leases Finance Leases (In millions) 2023 $ 50.0 $ 8.6 2024 34.6 8.5 2025 26.6 8.1 2026 18.5 11.4 2027 8.2 5.1 Thereafter 21.1 45.1 Total lease payments $ 159.0 $ 86.8 Less: interest (15.0) (25.3) Present value of lease liabilities $ 144.0 $ 61.5 |
Maturities of Operating Lease Liabilities | Based on foreign exchange rates as of December 31, 2022, maturities of lease liabilities were as follows: Operating Leases Finance Leases (In millions) 2023 $ 50.0 $ 8.6 2024 34.6 8.5 2025 26.6 8.1 2026 18.5 11.4 2027 8.2 5.1 Thereafter 21.1 45.1 Total lease payments $ 159.0 $ 86.8 Less: interest (15.0) (25.3) Present value of lease liabilities $ 144.0 $ 61.5 |
Debt (Tables)
Debt (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Debt Disclosure [Abstract] | |
Schedule of Debt Obligations | Debt Obligations As of December 31, 2022 December 31, 2021 (In millions) Long-term debt $500 million 3.5% notes due May 2022 (1)(2) $ — $ 500.9 CAD 500 million 2.84% notes due July 2023 (3)(4) 368.9 395.7 EUR 800 million 1.25% notes due July 2024 (3) 856.4 909.6 CAD 500 million 3.44% notes due July 2026 (3)(4) 368.9 395.7 $2.0 billion 3.0% notes due July 2026 (3) 2,000.0 2,000.0 $1.1 billion 5.0% notes due May 2042 (2) 1,100.0 1,100.0 $1.8 billion 4.2% notes due July 2046 (3) 1,800.0 1,800.0 Finance leases 61.5 67.2 Other 25.4 30.7 Less: unamortized debt discounts and debt issuance costs (39.7) (44.6) Total long-term debt (including current portion) 6,541.4 7,155.2 Less: current portion of long-term debt (376.2) (508.0) Total long-term debt $ 6,165.2 $ 6,647.2 Short-term borrowings Short-term borrowings (5) 20.9 6.9 Current portion of long-term debt 376.2 508.0 Current portion of long-term debt and short-term borrowings $ 397.1 $ 514.9 (1) We repaid our $500 million 3.5% USD notes upon maturity on May 1, 2022 using a combination of commercial paper borrowings and cash on hand. (2) On May 3, 2012, we issued approximately $1.9 billion of senior notes with portions maturing in 2017, 2022 and 2042. The issuance resulted in total proceeds, before expenses, of approximately $1.9 billion, net of underwriting fees and discounts of $14.7 million and $4.6 million, respectively. Approximately $1.1 billion of senior notes remained outstanding as of December 31, 2022, and the total remaining debt issuance costs capitalized in connection with these notes, including the underwriting fees and discounts, were $8.7 million and are being amortized over the term of the 2042 notes. (3) On July 7, 2016, MCBC issued approximately $5.3 billion senior notes with portions maturing from July 15, 2019 through July 15, 2046 ("2016 USD Notes"). Approximately $3.8 billion remained outstanding as of December 31, 2022. At the same time in 2016, MCBC also issued EUR 800 million senior notes maturing July 15, 2024 ("2016 EUR Notes"), and Molson Coors International L.P., completed a private placement of CAD 1.0 billion senior notes maturing July 15, 2023 and July 15, 2026 ("2016 CAD Notes"). All senior notes were issued in order to partially fund the financing of the Acquisition (2016 USD Notes, 2016 EUR Notes and 2016 CAD Notes, collectively, the "2016 Notes"). Debt issuance costs capitalized in connection with these notes including underwriting fees, discounts and other financing related costs, were $31 million as of December 31, 2022 and are being amortized over the respective and remaining terms of the 2016 Notes. (4) We entered into forward starting interest rate swap agreements to hedge interest rate volatility for a 10-year period until they were settled on September 18, 2015. We are amortizing a portion of the resulting loss from AOCI to interest expense over the remaining term of the 2016 CAD Notes, as defined above, up to the full 10-year term of the interest rate swap agreements. The amortizing loss resulted in an increase in our effective cost of borrowing compared to the stated coupon rates by 0.6% on the 2016 CAD Notes. See Note 10, "Derivative Instruments and Hedging Activities" for further details on the forward starting interest rate swaps. (5) As of December 31, 2022, we had $15.9 million in bank overdrafts and $49.7 million in bank cash related to our cross-border, cross-currency cash pool for a net positive position of $33.8 million. As of December 31, 2021, we had $3.0 million in bank overdrafts and $123.1 million in bank cash related to our cross-border, cross-currency cash pool for a net positive position of $120.1 million. The JPY facilities were early terminated in the first quarter of 2022. As of December 31, 2021, we had $3.9 million of outstanding borrowings under our JPY facilities. In addition, we have CAD, GBP and USD overdraft facilities under which we had no outstanding borrowings as of December 31, 2022 or December 31, 2021. A summary of our short-term facility availability is presented below. See Note 13, "Commitments and Contingencies" for further discussion related to letters of credit. • CAD unlimited overdraft facility at CAD Prime plus 0.50% • GBP 10 million overdraft facility at GBP base rate plus 2.25% • USD 10 million overdraft facility at USD Prime plus 5% |
Schedule of Debt Maturities | As of December 31, 2022, the aggregate principal debt maturities of long-term debt and short-term borrowings, based on foreign exchange rates as of December 31, 2022, for the next 5 years are as follows: Year Amount (In millions) 2023 $ 389.8 2024 856.4 2025 — 2026 2,368.9 2027 — Thereafter 2,900.0 Total $ 6,515.1 |
Schedule of Interest | Interest For the years ended December 31, 2022 December 31, 2021 December 31, 2020 (In millions) Interest incurred $ 257.4 $ 269.1 $ 282.3 Interest capitalized (6.8) (8.8) (7.7) Interest expensed $ 250.6 $ 260.3 $ 274.6 |
Derivative Instruments and He_2
Derivative Instruments and Hedging Activities (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Derivative Assets and Liabilities at Fair Value | The tables below summarize our derivative assets and (liabilities) that were measured at fair value as of December 31, 2022 and December 31, 2021. See Note 1, "Basis of Presentation and Summary of Significant Accounting Policies" for further discussion related to measuring the fair value of derivative instruments. Fair Value Measurements as of Total as of Quoted prices Significant Significant (In millions) Interest rate swaps $ 40.0 $ — $ 40.0 $ — Foreign currency forwards 7.6 — 7.6 — Commodity swaps and options 69.0 — 69.0 — Total $ 116.6 $ — $ 116.6 $ — Fair Value Measurements as of December 31, 2021 Total as of December 31, 2021 Quoted prices Significant Significant (In millions) Interest rate swaps (170.8) — (170.8) — Foreign currency forwards (1.5) — (1.5) — Commodity swaps and options 300.9 — 300.9 — Total $ 128.6 $ — $ 128.6 $ — |
Fair Value of Derivative Instruments in the Condensed Consolidated Balance Sheets | Fair Value of Derivative Instruments in the Consolidated Balance Sheets (in millions) December 31, 2022 Asset derivatives Liability derivatives Notional amount Balance sheet location Fair value Balance sheet location Fair value Derivatives designated as hedging instruments: Interest rate swaps $ 1,000.0 Other non-current assets 40.0 Other liabilities — Foreign currency forwards $ 176.6 Other current assets 6.2 Accounts payable and other current liabilities (0.1) Other non-current assets 1.6 Other liabilities (0.1) Total derivatives designated as hedging instruments $ 47.8 $ (0.2) Derivatives not designated as hedging instruments: Commodity swaps (1) $ 525.2 Other current assets $ 86.1 Accounts payable and other current liabilities $ (14.1) Other non-current assets 7.4 Other liabilities (10.4) Commodity options (1) $ 19.7 Other current assets 0.8 Accounts payable and other current liabilities (0.8) Total derivatives not designated as hedging instruments $ 94.3 $ (25.3) December 31, 2021 Asset derivatives Liability derivatives Notional amount Balance sheet location Fair value Balance sheet location Fair value Derivatives designated as hedging instruments: Interest rate swaps $ 1,500.0 Other current assets $ — Accounts payable and other current liabilities $ (67.7) Other non-current assets — Other liabilities (103.1) Foreign currency forwards $ 170.8 Other current assets 0.5 Accounts payable and other current liabilities (2.4) Other non-current assets 0.6 Other liabilities (0.2) Total derivatives designated as hedging instruments $ 1.1 $ (173.4) Derivatives not designated as hedging instruments: Commodity swaps (1) $ 722.1 Other current assets $ 225.1 Accounts payable and other current liabilities $ (1.1) Other non-current assets 77.1 Other liabilities (0.3) Commodity options (1) $ 68.2 Other current assets 1.0 Accounts payable and other current liabilities (0.9) Total derivatives not designated as hedging instruments $ 303.2 $ (2.3) |
The Effect of Derivative Instruments on the Condensed Consolidated Statements of Operations | The Pretax Effect of Cash Flow Hedge Accounting on Other Comprehensive Income (Loss), Accumulated Other Comprehensive Income (Loss), and Income (Loss) (in millions): Derivatives in cash flow hedge relationships Amount of gain Location of gain (loss) Amount of gain For the year ended December 31, 2022 Forward starting interest rate swaps $ 198.9 Interest income (expense), net $ (14.3) Foreign currency forwards 10.8 Cost of goods sold 1.8 Other non-operating income (expense), net (0.4) Total $ 209.7 $ (12.9) For the year ended December 31, 2021 Forward starting interest rate swaps $ 50.7 Interest income (expense), net $ (4.8) Foreign currency forwards 0.4 Cost of goods sold (3.5) Other non-operating income (expense), net 0.8 Total $ 51.1 $ (7.5) For the year ended December 31, 2020 Forward starting interest rate swaps $ (110.0) Interest income (expense), net $ (2.9) Foreign currency forwards (3.5) Cost of goods sold 4.6 Other non-operating income (expense), net (1.2) Total $ (113.5) $ 0.5 The Pretax Effect of Net Investment Hedge Accounting on Other Comprehensive Income (Loss), Accumulated Other Comprehensive Income (Loss) and Income (Loss) (in millions) Net investment hedge relationships Amount of gain Location of gain (loss) recognized in income (amount excluded from effectiveness testing) Amount of gain (loss) recognized in income (amount excluded from effectiveness testing)(1) For the year ended December 31, 2022 EUR 800 million notes due 2024 53.2 Other non-operating income (expense), net — Total $ 53.2 $ — For the year ended December 31, 2021 Cross currency swaps $ 8.8 Interest income (expense), net $ 6.1 EUR 800 million notes due 2024 67.7 Other non-operating income (expense), net — Total $ 76.5 $ 6.1 For the year ended December 31, 2020 Cross currency swaps $ (33.2) Interest income (expense), net $ 14.2 EUR 800 million notes due 2024 (80.3) Other non-operating income (expense), net — Total $ (113.5) $ 14.2 (1) Represents amounts excluded from the assessment of effectiveness for which the difference between changes in fair value and period amortization is recorded in other comprehensive income. |
Other Derivatives | The Effect of Derivatives Not Designated as Hedging Instruments on the Consolidated Statements of Operations (in millions): Derivatives not in hedging relationship Location of gain (loss) recognized Amount of gain (loss) recognized For the year ended December 31, 2022 Commodity swaps Cost of goods sold $ 42.6 Total $ 42.6 For the year ended December 31, 2021 Commodity swaps Cost of goods sold $ 403.4 Commodity options Cost of goods sold 0.1 Warrants Other non-operating income (expense), net (0.3) Total $ 403.2 For the year ended December 31, 2020 Commodity swaps Cost of goods sold $ 28.5 Warrants Other non-operating income (expense), net (2.4) Total $ 26.1 |
Employee Retirement Plans and_2
Employee Retirement Plans and Postretirement Benefits (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Retirement Benefits [Abstract] | |
Schedule of Net Benefit Costs | Net Periodic Pension and OPEB (Benefit) Cost For the years ended December 31, 2022 December 31, 2021 December 31, 2020 Pension OPEB Consolidated Pension OPEB Consolidated Pension OPEB Consolidated (In millions) Service cost Service cost $ 1.3 $ 5.5 $ 6.8 $ 2.7 $ 6.0 $ 8.7 $ 2.7 $ 6.0 $ 8.7 Other pension and postretirement (benefit) cost, net Interest cost 103.9 16.1 120.0 93.9 14.6 108.5 120.5 18.8 139.3 Expected return on plan assets, net of expenses (154.2) — (154.2) (161.6) — (161.6) (161.8) 0.2 (161.6) Amortization of prior service (benefit) cost 0.3 (0.7) (0.4) 0.4 (0.7) (0.3) 0.3 (0.7) (0.4) Amortization of net actuarial (gain) loss 5.6 (10.2) (4.6) 8.7 (6.7) 2.0 7.3 (14.5) (7.2) Curtailment, settlement or special termination benefit (gain) loss (1) 2.9 — 2.9 5.4 — 5.4 — — — Expected participant contributions (0.3) — (0.3) (0.4) — (0.4) (0.4) — (0.4) Total other pension and postretirement (benefit) cost, net (41.8) 5.2 (36.6) (53.6) 7.2 (46.4) (34.1) 3.8 (30.3) Net periodic pension and OPEB (benefit) cost $ (40.5) $ 10.7 $ (29.8) $ (50.9) $ 13.2 $ (37.7) $ (31.4) $ 9.8 $ (21.6) (1) The pension settlement charge recognized for the year ended December 31, 2022 primarily consisted of a settlement loss of $8.0 million that was recorded as a result of the annuity purchase for a certain Canadian pension plan described above, partially offset by a settlement gain of $5.3 million that was recorded as a result of the annuity purchase for a portion of our U.S. qualified pension plan described above. |
Schedule of Changes in Projected Benefit Obligation Plan, Assets and Funded Status of Pension Plans | Obligations and Changes in Funded Status For the year ended December 31, 2022 For the year ended December 31, 2021 Pension OPEB Total Pension OPEB Total (In millions) Change in benefit obligation Prior year benefit obligation $ 5,095.8 $ 648.7 $ 5,744.5 $ 5,571.5 $ 704.7 $ 6,276.2 Service cost, net of expected employee contributions 1.0 5.5 6.5 2.3 6.0 8.3 Interest cost 103.9 16.1 120.0 93.9 14.6 108.5 Actual employee contributions 0.3 — 0.3 0.4 — 0.4 Actuarial (gain) loss (1,181.0) (144.6) (1,325.6) (227.4) (37.3) (264.7) Plan amendments — (0.1) (0.1) — — — Benefits paid (263.8) (38.7) (302.5) (293.1) (40.3) (333.4) Curtailment, settlement and special termination (460.6) 0.2 (460.4) (35.4) — (35.4) Foreign currency exchange rate change (317.6) (8.8) (326.4) (16.4) 1.0 (15.4) Benefit obligation at end of year $ 2,978.0 $ 478.3 $ 3,456.3 $ 5,095.8 $ 648.7 $ 5,744.5 Change in plan assets Prior year fair value of assets $ 5,667.5 $ — $ 5,667.5 $ 5,958.4 $ — $ 5,958.4 Actual return on plan assets (1,272.9) — (1,272.9) 55.5 — 55.5 Employer contributions (0.5) 38.7 38.2 2.2 40.3 42.5 Actual employee contributions 0.3 — 0.3 0.4 — 0.4 Curtailment, settlement and special termination (460.6) — (460.6) (35.4) — (35.4) Benefits and plan expenses paid (263.8) (38.7) (302.5) (293.1) (40.3) (333.4) Foreign currency exchange rate change (333.2) — (333.2) (20.5) — (20.5) Fair value of plan assets at end of year $ 3,336.8 $ — $ 3,336.8 $ 5,667.5 $ — $ 5,667.5 Funded (underfunded) status $ 358.8 $ (478.3) $ (119.5) $ 571.7 $ (648.7) $ (77.0) Amounts recognized in the Consolidated Balance Sheets Other non-current assets $ 397.2 $ — $ 397.2 $ 622.9 $ — $ 622.9 Accounts payable and other current liabilities (3.9) (39.5) (43.4) (4.1) (41.4) (45.5) Pension and postretirement benefits (34.5) (438.8) (473.3) (47.1) (607.3) (654.4) Net amounts recognized $ 358.8 $ (478.3) $ (119.5) $ 571.7 $ (648.7) $ (77.0) As of December 31, 2022 December 31, 2021 (In millions) Accumulated benefit obligation $ 38.4 $ 51.2 Projected benefit obligation $ 38.4 $ 51.2 Fair value of plan assets $ — $ — |
Schedule of Net Periodic Benefit Cost Not yet Recognized | Amounts recognized in AOCI not yet recognized as components of net periodic pension and OPEB cost, pretax, were as follows: As of December 31, 2022 As of December 31, 2021 Pension OPEB Total Pension OPEB Total (In millions) Net actuarial (gain) loss $ 766.4 $ (278.2) $ 488.2 $ 553.4 $ (142.3) $ 411.1 Net prior service (benefit) cost 9.7 (0.8) 8.9 10.1 (3.2) 6.9 Total not yet recognized $ 776.1 $ (279.0) $ 497.1 $ 563.5 $ (145.5) $ 418.0 |
Schedule of Assumptions Used | The weighted-average rates used in determining the periodic pension and OPEB cost for the fiscal years 2022, 2021 and 2020 were as follows: For the years ended December 31, 2022 December 31, 2021 December 31, 2020 Pension OPEB Pension OPEB Pension OPEB Weighted-average assumptions: Discount rate 2.27% 2.59% 1.84% 2.10% 2.55% 2.91% Rate of compensation increase 2.00% N/A 2.00% N/A 2.00% N/A Expected return on plan assets 3.11% N/A 3.03% N/A 3.24% N/A Health care cost trend rate N/A Ranging ratably from 6.00% in 2022 to 3.57% in 2040 N/A Ranging ratably from 6.00% in 2021 to 3.57% in 2040 N/A Ranging ratably from 6.25% in 2020 to 3.57% in 2040 As of December 31, 2022 As of December 31, 2021 Pension OPEB Pension OPEB Weighted-average assumptions Discount rate 5.01% 4.90% 2.27% 2.59% Rate of compensation increase 2.00% N/A 2.00% N/A Health care cost trend rate N/A Ranging ratably from 6.50% in 2023 to 3.57% in 2040 N/A Ranging ratably from 6.00% in 2022 to 3.57% in 2040 |
Schedule of Defined Benefit Plan, Assets Target and Actual Allocations | The following compares target asset allocation percentages with actual asset allocations on a weighted-average asset basis as of December 31, 2022. While the actual allocations show a temporary shift away from fixed income securities due to the rising rate environment, the actual allocations remain within our Company defined tolerance levels. Target Actual Equities 7.9% 12.5% Fixed income 69.4% 65.2% Real estate 5.4% 5.3% Annuities and longevity swap 13.8% 13.8% Other 3.5% 3.2% |
Schedule of Fair Value of Plan Assets by Measurement | The following presents our fair value hierarchy for our defined benefit pension plan assets excluding investments using the NAV per share practical expedient (in millions): Fair value measurements as of December 31, 2022 Total as of December 31, 2022 Quoted prices Significant Significant Cash and cash equivalents Cash $ 99.3 $ 99.3 $ — $ — Trades awaiting settlement 32.7 32.7 — — Bank deposits, short-term bills and notes 7.0 — 7.0 — Debt Government debt securities 422.6 — 422.6 — Corporate debt securities 89.1 — 89.1 — Interest and inflation linked assets 420.6 — 408.0 12.6 Collateralized debt securities 0.2 — — 0.2 Annuities and Longevity Swap Buy-in annuities and longevity swap 461.8 — — 461.8 Other Repurchase agreements (281.2) (281.2) — — Recoverable taxes 0.1 0.1 — — Private equity 12.4 — — 12.4 Total fair value of investments excluding NAV per share practical expedient $ 1,264.6 $ (149.1) $ 926.7 $ 487.0 The following presents our total fair value of plan assets including the NAV per share practical expedient for our defined benefit pension plan assets: Total as of December 31, 2022 (In millions) Fair value of investments excluding NAV per share practical expedient $ 1,264.6 Fair value of investments using NAV per share practical expedient Debt funds 1,355.7 Equity funds 417.4 Real estate funds 130.9 Private equity funds 44.7 Hedge funds 123.5 Total fair value of plan assets $ 3,336.8 The following presents our fair value hierarchy for our defined benefit pension plan assets excluding investments using the NAV per share practical expedient (in millions): Fair value measurements as of December 31, 2021 Total as of December 31, 2021 Quoted prices Significant Significant Cash and cash equivalents Cash $ 198.4 $ 198.4 $ — $ — Trades awaiting settlement 2.1 2.1 — — Bank deposits, short-term bills and notes 25.5 — 25.5 — Debt Government securities 751.0 — 751.0 — Corporate debt securities 142.0 — 142.0 — Interest and inflation linked assets 1,029.7 — 1,013.8 15.9 Annuities Buy-in annuities 708.9 — — 708.9 Other Repurchase agreements (477.4) (477.4) — — Recoverable taxes 0.2 0.2 — — Private equity 29.7 — — 29.7 Total fair value of investments excluding NAV per share practical expedient $ 2,410.1 $ (276.7) $ 1,932.3 $ 754.5 The following presents our fair value hierarchy including the NAV per share practical expedient for our defined benefit pension plan assets: Total as of December 31, 2021 (In millions) Fair value of investments excluding NAV per share practical expedient $ 2,410.1 Fair value of investments using NAV per share practical expedient Debt funds 2,034.2 Equity funds 732.1 Real estate funds 285.0 Private equity funds 65.8 Hedge funds 140.3 Total fair value of plan assets $ 5,667.5 |
Schedule of Effect of Significant Unobservable Inputs Changes in Defined Benefit Pension Plan Assets | The following presents our Level 3 Rollforward for our defined pension plan assets excluding investments using the NAV per share practical expedient: Amount (In millions) Balance as of December 31, 2020 $ 856.3 Total gain or loss (realized/unrealized) Realized gain (loss) 0.9 Unrealized gain (loss) included in AOCI (63.3) Purchases, issuances, settlements (32.8) Foreign exchange translation (loss)/gain (6.6) Balance as of December 31, 2021 $ 754.5 Total gain or loss (realized/unrealized) Realized gain (loss) (1.9) Unrealized gain (loss) included in AOCI (183.5) Purchases, issuances, settlements (6.6) Foreign exchange translation (loss)/gain (75.5) Balance as of December 31, 2022 $ 487.0 |
Schedule of Expected Benefit Payments | Expected future benefit payments for defined benefit pension and OPEB plans, based on foreign exchange rates as of December 31, 2022, are as follows: Expected benefit payments Pension OPEB (In millions) 2023 $ 251.4 $ 39.5 2024 $ 242.2 $ 39.1 2025 $ 243.9 $ 38.6 2026 $ 244.4 $ 38.3 2027 $ 244.8 $ 38.0 2028-2032 $ 1,228.6 $ 184.2 |
Income Tax (Tables)
Income Tax (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Income Tax Disclosure [Abstract] | |
Pretax income for computation of income tax provision | Our income (loss) before income taxes on which the provision for income taxes was computed is as follows: For the years ended December 31, 2022 December 31, 2021 December 31, 2020 (In millions) Domestic $ 228.4 $ 1,307.5 $ 1,151.7 Foreign (290.9) (68.5) (1,795.6) Total $ (62.5) $ 1,239.0 $ (643.9) |
Current and deferred provisions of income tax expense (benefits) | The components of the provision for income taxes are as follows: For the years ended December 31, 2022 December 31, 2021 December 31, 2020 (In millions) Current Federal $ 146.1 $ 43.5 $ 79.0 State 22.3 7.1 5.2 Foreign (17.2) (1.0) 111.4 Total current tax (benefit) expense $ 151.2 $ 49.6 $ 195.6 Deferred Federal $ 56.4 $ 163.5 $ 101.9 State (26.2) 70.4 19.5 Foreign (57.4) (53.0) (15.2) Total deferred tax (benefit) expense $ (27.2) $ 180.9 $ 106.2 Total income tax (benefit) expense $ 124.0 $ 230.5 $ 301.8 |
Computation of effective income tax rate | A reconciliation from the U.S. statutory federal income tax rate to the effective income tax rate is as follows: For the years ended December 31, 2022 December 31, 2021 December 31, 2020 ($ in millions) Statutory federal income tax rate 21.0 % $ (13.1) 21.0 % $ 260.2 21.0 % $ (135.2) State income taxes, net of federal benefits 6.1 % (3.8) 4.7 % 57.8 (1.7) % 11.0 Effect of foreign tax rates 92.6 % (57.9) (5.5) % (68.3) 3.5 % (22.3) Effect of foreign tax law and rate changes (0.8) % 0.5 1.6 % 19.6 (0.9) % 6.0 Effect of unrecognized tax benefits (20.5) % 12.8 (6.2) % (76.3) (26.1) % 167.9 Change in valuation allowance 1.1 % (0.7) (0.1) % (1.1) 1.3 % (8.4) Goodwill impairment (287.0) % 179.3 (0.2) % (2.9) (41.4) % 266.8 Other, net (10.9) % 6.9 3.3 % 41.5 (2.6) % 16.0 Effective tax rate / Tax (benefit) expense (198.4) % $ 124.0 18.6 % $ 230.5 (46.9) % $ 301.8 |
Composition of deferred tax assets and liabilities | As of December 31, 2022 December 31, 2021 (In millions) Deferred tax assets Compensation-related obligations $ 44.7 $ 54.8 Pension and postretirement benefits 33.7 24.5 Tax credit carryforwards 39.0 38.3 Tax loss carryforwards 291.1 359.0 Accrued liabilities and other 149.0 97.7 Valuation allowance (57.2) (60.7) Deferred tax assets $ 500.3 $ 513.6 Deferred tax liabilities Fixed assets 358.9 422.4 Partnerships and investments 33.2 29.7 Intangible assets 2,563.2 2,539.7 Derivative instruments 31.5 19.5 Deferred tax liabilities $ 2,986.8 $ 3,011.3 Net deferred tax liabilities $ 2,486.5 $ 2,497.7 The following table presents our net deferred tax liabilities as of December 31, 2022 and December 31, 2021. As of December 31, 2022 December 31, 2021 (In millions) Domestic deferred tax liabilities $ 1,927.7 $ 1,825.9 Foreign deferred tax assets 125.8 180.2 Foreign deferred tax liabilities 684.6 852.0 Net deferred tax liabilities $ 2,486.5 $ 2,497.7 |
Schedule of unrecognized tax benefits roll forward | A reconciliation of the beginning and ending amounts of un recognized tax benefits, excluding interest and penalties, is as follows: For the years ended December 31, 2022 December 31, 2021 December 31, 2020 (In millions) Balance at beginning of year $ 28.0 $ 235.7 $ 72.4 Additions for tax positions related to the current year 15.9 28.6 22.8 Additions for tax positions of prior years 1.9 — 132.1 Reductions for tax positions related to the current year — (24.1) — Reductions for tax positions of prior years — (48.9) (1.6) Settlements (3.7) (161.8) (0.4) Release due to statute expirations (1.3) (3.4) — Foreign currency adjustment (1.5) 1.9 10.4 Balance at end of year $ 39.3 $ 28.0 $ 235.7 |
Commitments and Contingencies (
Commitments and Contingencies (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Commitments and Contingencies Disclosure [Abstract] | |
Schedule of Reserves for Indemnity Obligations | The table below provides a summary of reserves associated with the Kaiser indemnity obligations from December 31, 2019 through December 31, 2022: Total indemnity (In millions) Balance as of December 31, 2019 $ 14.2 Foreign exchange impacts (3.2) Balance as of December 31, 2020 $ 11.0 Foreign exchange impacts (0.8) Balance as of December 31, 2021 $ 10.2 Foreign exchange impacts 0.6 Balance as of December 31, 2022 $ 10.8 |
Schedule of Purchase Obligations | The future aggregate minimum required commitments under these purchase obligations are shown in the table below based on foreign exchange rates as of December 31, 2022. The amounts in the table do not represent all anticipated payments under long-term contracts. Rather, they represent unconditional, non-cancelable purchase commitments under contracts with remaining terms greater than one year. Year Supply and Distribution Advertising and Promotions (Amounts in millions) 2023 $ 292.3 $ 161.6 2024 196.4 158.7 2025 184.7 126.2 2026 144.9 94.7 2027 138.2 70.7 Thereafter 216.0 177.3 Total $ 1,172.5 $ 789.2 |
Stockholders' Equity (Tables)
Stockholders' Equity (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Equity [Abstract] | |
Schedule Of Capital Stock | Changes to the number of shares of capital stock issued were as follows: Common stock Exchangeable Class A Class B Class A Class B (Share amounts in millions) Balance as of December 31, 2019 2.6 205.7 2.7 14.8 Shares issued under equity compensation plans — 0.4 — — Shares exchanged for common stock — 3.7 — (3.7) Balance as of December 31, 2020 2.6 209.8 2.7 11.1 Shares issued under equity compensation plans — 0.3 — — Balance as of December 31, 2021 2.6 210.1 2.7 11.1 Shares issued under equity compensation plans — 0.3 — — Shares exchanged for common stock — 0.1 — (0.1) Balance as of December 31, 2022 2.6 210.5 2.7 11.0 |
Accumulated Other Comprehensi_2
Accumulated Other Comprehensive Income (Loss) (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Accumulated Other Comprehensive Income (Loss), Net of Tax [Abstract] | |
Summary of the Components of Accumulated Other Comprehensive Income (Loss) | MCBC stockholders' equity Foreign Gain (loss) on Pension and Equity method Accumulated (In millions) As of December 31, 2019 $ (652.5) $ (87.8) $ (351.0) $ (70.9) $ (1,162.2) Foreign currency translation adjustments 196.0 — (1.6) — 194.4 Gain (loss) on net investment hedges (113.5) — — — (113.5) Unrealized gain (loss) on derivative instruments — (113.5) — — (113.5) Reclassification of derivative (gain) loss to income (loss) — (0.5) — — (0.5) Net change in pension and other postretirement benefit assets and liabilities — — (52.9) — (52.9) Pension and other postretirement prior service (benefit) cost and net actuarial (gain) loss amortization and settlements to income (loss) — — (7.6) — (7.6) Ownership share of unconsolidated subsidiaries' other comprehensive income (loss) — — — 19.4 19.4 Tax benefit (expense) 30.5 27.9 15.4 (5.2) 68.6 As of December 31, 2020 $ (539.5) $ (173.9) $ (397.7) $ (56.7) $ (1,167.8) Foreign currency translation adjustments (85.6) — (1.2) — (86.8) Reclassification of cumulative translation adjustment (1) 7.5 — — — 7.5 Gain (loss) on net investment hedges 76.5 — — — 76.5 Unrealized gain (loss) on derivative instruments — 51.1 — — 51.1 Reclassification of derivative (gain) loss to income (loss) — 7.5 — — 7.5 Net change in pension and other postretirement benefit assets and liabilities — — 158.6 — 158.6 Pension and other postretirement prior service (benefit) cost and net actuarial (gain) loss amortization and settlements to income (loss) — — 7.1 — 7.1 Ownership share of unconsolidated subsidiaries' other comprehensive income (loss) — — — 20.8 20.8 Tax benefit (expense) (17.6) (15.7) (41.9) (5.3) (80.5) As of December 31, 2021 $ (558.7) $ (131.0) $ (275.1) $ (41.2) $ (1,006.0) Foreign currency translation adjustments (356.1) — 1.2 — (354.9) Reclassification of cumulative translation adjustment (1) 12.1 — — — 12.1 Gain (loss) on net investment hedges 53.2 — — — 53.2 Unrealized gain (loss) on derivative instruments — 209.7 — — 209.7 Reclassification of derivative (gain) loss to income (loss) — 12.9 — — 12.9 Net change in pension and other postretirement benefit assets and liabilities — — (78.2) — (78.2) Pension and other postretirement prior service (benefit) cost and net actuarial (gain) loss amortization and settlements to income (loss) — — (2.1) — (2.1) Ownership share of unconsolidated subsidiaries' other comprehensive income (loss) — — — 18.7 18.7 Tax benefit (expense) (25.7) (59.4) 19.1 (4.9) (70.9) As of December 31, 2022 $ (875.2) $ 32.2 $ (335.1) $ (27.4) $ (1,205.5) (1) As a result of the sale of a disposal group within our India business for the year ended December 31, 2021, the associated cumulative foreign currency translation adjustment was reclassified from AOCI and recognized within other operating income (expense), net. As a result of the completion of the sale of our non-operating India entity during 2022, the associated cumulative foreign currency translation adjustment was reclassified from AOCI and recognized within other operating income (expense), net. |
Schedule of Reclassifications from Accumulated Other Comprehensive Income to Income | Reclassifications from AOCI to income For the years ended December 31, 2022 December 31, 2021 December 31, 2020 Reclassifications from AOCI Location of gain (loss) (In millions) Gain/(loss) on cash flow hedges Forward starting interest rate swaps $ (14.3) $ (4.8) $ (2.9) Interest expense, net Foreign currency forwards 1.8 (3.5) 4.6 Cost of goods sold Foreign currency forwards (0.4) 0.8 (1.2) Other non-operating income (expense), net Total income (loss) reclassified, before tax (12.9) (7.5) 0.5 Income tax benefit (expense) 3.5 2.0 (0.1) Net income (loss) reclassified, net of tax $ (9.4) $ (5.5) $ 0.4 Amortization of defined benefit pension and other postretirement benefit plan items Prior service benefit (cost) $ 0.4 $ 0.3 $ 0.4 Other pension and postretirement benefits (costs), net Net actuarial gain (loss) and settlement 1.7 (7.4) 7.2 Other pension and postretirement benefits (costs), net Total income (loss) reclassified, before tax 2.1 (7.1) 7.6 Income tax benefit (expense) (0.5) 1.7 (2.4) Net income (loss) reclassified, net of tax $ 1.6 $ (5.4) $ 5.2 Other reclassifications from AOCI to Income India cumulative translation adjustment resulting from sale of disposal group $ (12.1) $ (7.5) $ — Other operating income (expense), net Net income (loss) reclassified, net of tax $ (12.1) $ (7.5) $ — Total income (loss) reclassified, net of tax $ (19.9) $ (18.4) $ 5.6 |
Share-Based Payments (Tables)
Share-Based Payments (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Share-Based Payment Arrangement [Abstract] | |
Schedule of components of share-based compensation expense | The following table presents the pre-tax and after-tax share based compensation expense. For the years ended December 31, 2022 December 31, 2021 December 31, 2020 (In millions) Pre-tax share-based compensation expense $ 33.6 $ 32.1 $ 24.2 Tax benefit (5.9) (5.5) (4.3) After-tax share-based compensation expense $ 27.7 $ 26.6 $ 19.9 |
Schedule of non-vested RSUs, PSUs and DSUs outstanding and the activity for the period | RSUs and DSUs PSUs Units Weighted-average Units Weighted-average grant date fair value per unit (In millions, except per unit amounts) Non-vested as of December 31, 2021 1.3 $49.23 0.8 $49.47 Granted 0.5 $52.03 0.3 $62.98 Vested (0.4) $53.91 — $— Forfeited (0.1) $49.14 — $— Adjustment for performance results achieved — $— (0.2) $51.80 Non-vested as of December 31, 2022 1.3 $49.07 0.9 $53.54 |
Schedule of stock options outstanding and the activity for the period | Stock options Awards Weighted- Weighted- Aggregate (In millions, except per share amounts and years) Outstanding as of December 31, 2021 1.9 $63.15 4.8 $ 0.6 Granted 0.3 $52.18 Exercised (0.1) $44.12 Expired (0.6) $75.38 Outstanding as of December 31, 2022 1.5 $57.14 6.6 $ 2.1 Expected to vest as of December 31, 2022 0.6 $49.49 8.1 $ 1.4 Exercisable as of December 31, 2022 0.9 $62.43 5.5 $ 0.7 |
Schedule of share-based compensation weighted-average assumptions | The fair value of each option granted in 2022, 2021 and 2020 was determined on the date of grant using the Black-Scholes option-pricing model with the following weighted-average assumptions: For the years ended December 31, 2022 December 31, 2021 December 31, 2020 Risk-free interest rate 1.88% 0.79% 0.91% Dividend yield 2.86% 3.11% 4.40% Volatility range 30.91% - 33.85% 30.84% - 42.44% 25.09% - 26.31% Weighted-average volatility 31.65% 33.74% 25.40% Expected term (years) 5.7 5.6 5.5 Weighted-average fair value $12.16 $10.06 $6.70 |
Schedule of share-based payment award, performance share units, valuation assumptions | The fair values of the market metric for each PSU granted in 2022, 2021 and 2020 and the performance metric for each PSU granted in 2021 and 2020 was determined on the date of grant using a Monte Carlo model to simulate total stockholder return for MCBC and peer companies with the following weighted-average assumptions. For the years ended December 31, 2022 December 31, 2021 December 31, 2020 Risk-free interest rate 1.58% 0.24% 0.84% Volatility range 22.65% - 45.30% 23.00% - 44.71% 15.21% - 45.75% Weighted-average volatility 35.93% 35.46% 26.02% Expected term (years) 2.8 2.8 2.8 Weighted-average fair market value $62.98 $45.71 $52.60 |
Other Operating Income (Expen_2
Other Operating Income (Expense), net (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Unusual or Infrequent Items, or Both [Abstract] | |
Special items recorded by segment | The consolidated statements of operations for the years ended December 31, 2021 and December 31, 2020 were reclassified to reflect this change in presentation only. For the years ended December 31, 2022 December 31, 2021 December 31, 2020 (In millions) Restructuring Employee-related charges (1) $ (6.0) $ (11.7) $ (67.6) Asset abandonment and other restructuring costs (2)(3) (3.1) (25.9) (119.5) Intangible and tangible asset impairments, excluding goodwill (4) (36.3) (13.5) (71.5) Gains and (losses) on other disposals (5) 6.8 6.6 2.7 Other operating income (expense), net $ (38.6) $ (44.5) $ (255.9) (1) See the restructuring section within this footnote for a summary of our restructuring activities. (2) A significant portion of asset abandonment and other restructuring costs consists of accelerated depreciation, which is in excess of normal depreciation. There was no accelerated depreciation recorded to Other operating income (expense), net for the year ended December 31, 2022 and $15.4 million and $112.3 million recorded to Other operating income (expense), net for the years ended December 31, 2021 and 2020, respectively. During the years ended December 31, 2021 and December 31, 2020, we incurred accelerated depreciation related to the Montreal brewery closure which occurred during the fourth quarter of 2021. In addition, during the year ended December 31, 2021, we incurred accelerated depreciation for our Burtonwood and Japan locations and during the year ended December 31, 2020, we incurred accelerated depreciation for our Irwindale brewery. (3) In January 2020, we announced plans to cease production at our Irwindale, California brewery. On May 4, 2020, Pabst exercised its option to purchase the Irwindale brewery, including plant, equipment and machinery and the underlying land for $150 million and the transaction was completed in the fourth quarter of 2020. Charges associated with the brewery closure for the year ended December 31, 2020 totaled $117.7 million, excluding the fourth quarter of 2020 gain on sale of the brewery of $2.1 million. The charges for the year ended December 31, 2020 primarily consisted of accelerated depreciation, of $96.0 million and employee related costs of retention and severance of $16.5 million. (4) During the year ended December 31, 2022, we identified a triggering event related to the Truss joint venture asset group within our Americas segment and recognized an impairment loss of $28.6 million, of which $12.1 million was attributable to the noncontrolling interest. The asset group was measured at fair value primarily using a market approach with Level 3 inputs. During the year ended December 31, 2021, we recognized an impairment loss of $13.5 million related to the held for sale classification of the remaining portion of our India business. During the year ended December 31, 2020, we recorded aggregate impairment losses of $17.0 million related to certain regional craft brand definite-lived intangible assets and aggregate impairment losses of $22.6 million related to those regional craft brand definite-lived tangible assets in our Americas segment. The estimates and assumptions used to determine the fair value represent Level 3 measurements. In addition, we recognized an impairment loss of $30.0 million related to the held for sale classification of a disposal group within our India business, representing an insignificant part of our EMEA&APAC segment. The held for sale disposal group was measured at fair value on a nonrecurring basis using Level 3 inputs. The estimated fair value less cost to sell was determined using a market approach, based upon the expected net sales proceeds of the disposal group. Also in our EMEA&APAC segment, we incurred impairment losses as a result of small brewery closures in Europe as a result of the ongoing impact of the coronavirus pandemic. See Note 6, "Goodwill and Intangible Assets" for further discussion. (5) The former Alton brewery site in the U.K. was divided into tranches with one tranche selling in the third quarter of 2021, resulting in a gain of $11.4 million and another tranche selling in the third quarter of 2022 resulting in a gain of $4.9 million. In addition, in 2021 we recognized a loss of $2.7 million on the sale of a disposal group within our India business. The loss included the reclassification of the associated cumulative foreign currency translation adjustment losses from AOCI into other operating income (expense), net at the time of sale. See Note 15, "Accumulated Other Comprehensive Income (Loss)" |
Change in the restructuring accrual | The accrued restructuring balances as of December 31, 2022 represent expected future cash payments required to satisfy our remaining obligations, the majority of which we expect to be paid in the next 12 months. Americas EMEA&APAC Total (In millions) Balance as of December 31, 2019 $ 42.6 $ 4.5 $ 47.1 Charges incurred and changes in estimates 59.1 8.5 67.6 Payments made (77.3) (11.1) (88.4) Foreign currency and other adjustments 0.1 0.1 0.2 Balance as of December 31, 2020 $ 24.5 $ 2.0 $ 26.5 Charges incurred and changes in estimates 10.1 1.6 11.7 Payments made (23.7) (2.0) (25.7) Foreign currency and other adjustments — (0.1) (0.1) Balance as of December 31, 2021 $ 10.9 $ 1.5 $ 12.4 Charges incurred and changes in estimates (0.5) 6.0 5.5 Payments made (6.5) (1.3) (7.8) Foreign currency and other adjustments (0.3) 0.2 (0.1) Balance as of December 31, 2022 $ 3.6 $ 6.4 $ 10.0 |
Segment Reporting (Tables)
Segment Reporting (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Segment Reporting [Abstract] | |
Income (loss) before income taxes by segment | The following tables represent net sales, equity income (loss), interest expense, interest income and reconciliations of amounts shown as income (loss) before income taxes to income (loss) attributable to MCBC. Year ended December 31, 2022 Americas EMEA&APAC Unallocated Inter-segment net sales eliminations Consolidated (In millions) Net sales $ 8,711.5 $ 2,005.2 $ — $ (15.7) $ 10,701.0 Equity income (loss) 4.7 — — — 4.7 Interest expense (1.5) (5.1) (244.0) — (250.6) Interest income 0.2 0.2 3.9 — 4.3 Income (loss) before income taxes $ 312.9 $ 61.0 $ (436.4) $ — $ (62.5) Income tax benefit (expense) (124.0) Net income (loss) (186.5) Net (income) loss attributable to noncontrolling interests 11.2 Net income (loss) attributable to MCBC $ (175.3) Year ended December 31, 2021 Americas EMEA&APAC Unallocated Inter-segment net sales eliminations Consolidated (In millions) Net sales $ 8,485.0 $ 1,802.3 $ — $ (7.6) $ 10,279.7 Interest expense (1.4) (5.8) (253.1) — (260.3) Interest income — 0.2 1.8 — 2.0 Income (loss) before income taxes $ 1,176.5 $ 32.9 $ 29.6 $ — $ 1,239.0 Income tax benefit (expense) (230.5) Net income (loss) 1,008.5 Net (income) loss attributable to noncontrolling interests (2.8) Net income (loss) attributable to MCBC $ 1,005.7 Year ended December 31, 2020 Americas EMEA&APAC Unallocated Inter-segment net sales eliminations Consolidated (In millions) Net sales $ 8,237.0 $ 1,431.9 $ — $ (14.9) $ 9,654.0 Interest expense (2.6) (5.7) (266.3) — (274.6) Interest income 0.2 0.3 2.8 — 3.3 Income (loss) before income taxes $ 1,080.5 $ (1,603.7) $ (120.7) $ — $ (643.9) Income tax benefit (expense) (301.8) Net income (loss) (945.7) Net (income) loss attributable to noncontrolling interests (3.3) Net income (loss) attributable to MCBC $ (949.0) |
Cash flows information by segment | The following table presents total assets and select cash flow information by segment. Assets Depreciation and amortization Capital expenditures As of December 31, For the years ended December 31, For the years ended December 31, 2022 2021 2022 2021 2020 2022 2021 2020 (In millions) Americas $ 22,242.7 $ 23,653.5 $ 526.9 $ 601.4 $ 743.0 $ 483.5 $ 405.0 $ 461.4 EMEA&APAC 3,625.6 3,965.5 157.9 184.7 179.0 177.9 117.6 113.4 Consolidated $ 25,868.3 $ 27,619.0 $ 684.8 $ 786.1 $ 922.0 $ 661.4 $ 522.6 $ 574.8 |
Net sales by geographic segment | The following table presents net sales by geography, based on the location of the customer. For the years ended December 31, 2022 December 31, 2021 December 31, 2020 (In millions) Net sales to unaffiliated customers United States and its territories $ 7,405.6 $ 7,168.7 $ 7,016.1 Canada 1,165.3 1,188.4 1,111.6 United Kingdom 1,166.3 959.1 663.7 Other foreign countries (1) 963.8 963.5 862.6 Consolidated net sales $ 10,701.0 $ 10,279.7 $ 9,654.0 (1) Reflects net sales within certain countries in Europe, Latin America, South America, the Middle East, Africa and Asia. No individual country has total net sales exceeding 10% of total consolidated net sales. |
Properties by geographic segment | The following table presents net properties and operating ROU assets by geographic location. See Note 8, "Leases" for further information on our operating ROU assets and Note 5, "Properties" for further information on our net properties. As of December 31, 2022 December 31, 2021 (In millions) Net properties and operating ROU assets United States and its territories $ 2,444.6 $ 2,294.1 Canada 1,050.6 1,114.6 United Kingdom 365.4 383.2 Other foreign countries (1) 494.9 519.6 Consolidated net properties and operating ROU assets $ 4,355.5 $ 4,311.5 (1) Reflects net properties and operating ROU assets within certain countries in Europe, Latin America, South America, Africa and Asia. No individual country has total net properties or operating ROU assets exceeding 10% of total consolidated net properties or operating ROU assets, respectively. |
Basis of Presentation and Sum_3
Basis of Presentation and Summary of Significant Accounting Policies - Narrative (Details) $ / shares in Units, shares in Thousands | 12 Months Ended | ||||||||||||
Feb. 20, 2023 $ / shares | Nov. 10, 2022 $ / shares | Nov. 10, 2022 $ / shares | Mar. 07, 2022 USD ($) | Jan. 01, 2020 segment | Dec. 31, 2022 USD ($) reportingUnit $ / shares shares | Dec. 31, 2022 USD ($) $ / shares | Dec. 31, 2021 USD ($) $ / shares shares | Dec. 31, 2021 USD ($) $ / shares | Dec. 31, 2020 USD ($) $ / shares shares | Dec. 31, 2020 USD ($) $ / shares | Feb. 17, 2022 USD ($) | Jun. 30, 2021 USD ($) | |
Unusual or Infrequent Item [Line Items] | |||||||||||||
Temporary "thank you" pay incentives | $ 15,500,000 | ||||||||||||
Number of operating segments (in segments) | segment | 2 | ||||||||||||
Amortization period for customer prepayment obligation | 5 years | ||||||||||||
Contract liability | $ 0 | $ 0 | $ 0 | $ 0 | |||||||||
Contract asset | 0 | $ 0 | 0 | $ 0 | |||||||||
Advertising expense | $ 1,000,000,000 | $ 1,100,000,000 | $ 900,000,000 | ||||||||||
Anti-dilutive securities excluded from computation of diluted EPS (in shares) | shares | 3,100 | 1,800 | 2,700 | ||||||||||
Dividends paid (in dollars per share) | $ / shares | $ 0.38 | $ 0.68 | $ 0.57 | ||||||||||
Dividends declared (in dollars per share) | $ / shares | $ 1.52 | ||||||||||||
Exchangeable shares (in CAD per share) | $ / shares | $ 0.50 | $ 1.95 | $ 0.84 | $ 0.75 | |||||||||
Shares repurchased (in shares) | shares | 995 | ||||||||||||
Weighted average price (in dollars per share) | $ / shares | $ 51.70 | ||||||||||||
Aggregate value | $ 51,500,000 | ||||||||||||
Noncash change in equity method investment | 2,300,000 | $ 400,000 | $ 300,000 | ||||||||||
Capital expenditures incurred but not yet paid | $ 234,300,000 | 206,600,000 | 171,900,000 | ||||||||||
Period expected for other current asset recognition | 12 months | ||||||||||||
Allowance for current obsolete supplies | $ 19,800,000 | $ 19,800,000 | 18,300,000 | $ 18,300,000 | |||||||||
Number of reporting units (in reporting units) | reportingUnit | 2 | ||||||||||||
Subsequent event | |||||||||||||
Unusual or Infrequent Item [Line Items] | |||||||||||||
Dividends declared (in dollars per share) | $ / shares | $ 0.41 | ||||||||||||
Stone Brewing Company v.s. MCBC | Pending Litigation | |||||||||||||
Unusual or Infrequent Item [Line Items] | |||||||||||||
Damages awarded | $ 56,000,000 | ||||||||||||
Common Class B | |||||||||||||
Unusual or Infrequent Item [Line Items] | |||||||||||||
Share repurchase program, authorized amount | $ 200,000,000 | ||||||||||||
ASU 2016-02 | |||||||||||||
Unusual or Infrequent Item [Line Items] | |||||||||||||
Longest remaining lease term | 16 years | ||||||||||||
Returnable bottles | |||||||||||||
Unusual or Infrequent Item [Line Items] | |||||||||||||
Useful economic lives, minimum (in years) | 4 years | ||||||||||||
Returnable pallets | |||||||||||||
Unusual or Infrequent Item [Line Items] | |||||||||||||
Useful economic lives, minimum (in years) | 5 years | ||||||||||||
Crates | |||||||||||||
Unusual or Infrequent Item [Line Items] | |||||||||||||
Useful economic lives, minimum (in years) | 7 years | ||||||||||||
Returnable kegs | |||||||||||||
Unusual or Infrequent Item [Line Items] | |||||||||||||
Useful economic lives, minimum (in years) | 15 years | ||||||||||||
Dispensing equipment | |||||||||||||
Unusual or Infrequent Item [Line Items] | |||||||||||||
Useful economic lives, minimum (in years) | 7 years | ||||||||||||
Minimum | Buildings and improvements | |||||||||||||
Unusual or Infrequent Item [Line Items] | |||||||||||||
Useful economic lives, minimum (in years) | 20 years | ||||||||||||
Minimum | Production and office equipment | |||||||||||||
Unusual or Infrequent Item [Line Items] | |||||||||||||
Useful economic lives, minimum (in years) | 3 years | ||||||||||||
Minimum | Software | |||||||||||||
Unusual or Infrequent Item [Line Items] | |||||||||||||
Useful economic lives, minimum (in years) | 3 years | ||||||||||||
Maximum | Buildings and improvements | |||||||||||||
Unusual or Infrequent Item [Line Items] | |||||||||||||
Useful economic lives, minimum (in years) | 40 years | ||||||||||||
Maximum | Production and office equipment | |||||||||||||
Unusual or Infrequent Item [Line Items] | |||||||||||||
Useful economic lives, minimum (in years) | 25 years | ||||||||||||
Maximum | Software | |||||||||||||
Unusual or Infrequent Item [Line Items] | |||||||||||||
Useful economic lives, minimum (in years) | 5 years | ||||||||||||
Forward starting interest rate swap | |||||||||||||
Unusual or Infrequent Item [Line Items] | |||||||||||||
Derivative terminated | $ 250,000,000 | ||||||||||||
Coronavirus Global Pandemic | |||||||||||||
Unusual or Infrequent Item [Line Items] | |||||||||||||
Liability for estimated sales returns due to global pandemic | 30,300,000 | ||||||||||||
Obsolete finished keg inventories | 12,100,000 | ||||||||||||
Income and non-income based tax payments | 25,000,000 | $ 25,000,000 | 130,000,000 | $ 130,000,000 | |||||||||
Income tax payments made during period | 105,000,000 | ||||||||||||
Revitalization restructuring costs | |||||||||||||
Unusual or Infrequent Item [Line Items] | |||||||||||||
Restructuring charges | $ 4,000,000 | $ 35,600,000 |
Investments - Narrative (Detail
Investments - Narrative (Details) $ in Millions | 3 Months Ended | 12 Months Ended | ||
Dec. 31, 2022 USD ($) state | Dec. 31, 2022 USD ($) member | Dec. 31, 2021 USD ($) | Sep. 30, 2020 state | |
Variable Interest Entity | ||||
Guarantor obligations, maximum undiscounted exposure | $ 33.3 | $ 33.3 | $ 38.1 | |
Rocky Mountain Metal Container | ||||
Variable Interest Entity | ||||
Variable interest entity, ownership percentage | 50% | |||
Rocky Mountain Bottle Company | ||||
Variable Interest Entity | ||||
Variable interest entity, ownership percentage | 50% | |||
Cobra | ||||
Variable Interest Entity | ||||
Variable interest entity, ownership percentage | 50.10% | |||
Joint venture | ||||
Variable Interest Entity | ||||
Variable interest entity, ownership percentage | 57.50% | |||
Variable Interest Entity, Primary Beneficiary, RMMC/RBCS | ||||
Variable Interest Entity | ||||
Revolving credit facility | 5 | $ 5 | 0 | |
BRI | ||||
Variable Interest Entity | ||||
Equity method investments | 54.3 | 54.3 | 43.9 | |
BDL | ||||
Variable Interest Entity | ||||
Equity method investments | $ 30.9 | $ 30.9 | $ 33.2 | |
Number of members in distribution operation (in members) | member | 2 | |||
The Yuengling Company LLC | ||||
Variable Interest Entity | ||||
Number of states product is sold (in states) | state | 22 | |||
Number of new markets | state | 3 |
Investments - Summary of Transa
Investments - Summary of Transactions with Affiliates (Details) - USD ($) $ in Millions | Dec. 31, 2022 | Dec. 31, 2021 |
Related Party Transaction [Line Items] | ||
Amounts due from affiliates | $ 10.3 | $ 16.2 |
Amounts due to affiliates | 1 | 4.1 |
BRI | ||
Related Party Transaction [Line Items] | ||
Amounts due from affiliates | 4.7 | 3.3 |
Amounts due to affiliates | (0.3) | 0.4 |
BDL | ||
Related Party Transaction [Line Items] | ||
Amounts due from affiliates | 0.2 | 6.2 |
Amounts due to affiliates | 0 | 3.1 |
Other | ||
Related Party Transaction [Line Items] | ||
Amounts due from affiliates | 5.4 | 6.7 |
Amounts due to affiliates | $ 1.3 | $ 0.6 |
Investments - Schedule of Conso
Investments - Schedule of Consolidated Investments (Details) - USD ($) $ in Millions | Dec. 31, 2022 | Dec. 31, 2021 |
Variable Interest Entity | ||
Total Assets | $ 25,868.3 | $ 27,619 |
Total Liabilities | 12,953.1 | 13,954.9 |
RMMC/RMBC | ||
Variable Interest Entity | ||
Total Assets | 228.2 | 204.9 |
Total Liabilities | 21.2 | 19.1 |
Other | ||
Variable Interest Entity | ||
Total Assets | 43.3 | 70.8 |
Total Liabilities | $ 16.1 | $ 14.8 |
Inventories - Summary (Details)
Inventories - Summary (Details) - USD ($) $ in Millions | Dec. 31, 2022 | Dec. 31, 2021 |
Inventory Disclosure [Abstract] | ||
Finished goods | $ 269.1 | $ 351.5 |
Work in process | 71.9 | 71.8 |
Raw materials | 290.4 | 271.2 |
Packaging materials | 161.5 | 110.2 |
Inventories, net | $ 792.9 | $ 804.7 |
Properties - Summary (Details)
Properties - Summary (Details) - USD ($) $ in Millions | Dec. 31, 2022 | Dec. 31, 2021 |
Cost of properties and related accumulated depreciation and amortization | ||
Total properties cost | $ 7,884.7 | $ 7,699.6 |
Less: accumulated depreciation | (3,661.9) | (3,507.2) |
Properties, net | 4,222.8 | 4,192.4 |
Land and improvements | ||
Cost of properties and related accumulated depreciation and amortization | ||
Total properties cost | 355.9 | 355.9 |
Buildings and improvements | ||
Cost of properties and related accumulated depreciation and amortization | ||
Total properties cost | 1,205.5 | 1,225.1 |
Production and office equipment | ||
Cost of properties and related accumulated depreciation and amortization | ||
Total properties cost | 4,897.3 | 4,858.5 |
Software | ||
Cost of properties and related accumulated depreciation and amortization | ||
Total properties cost | 533.3 | 507.1 |
Construction in progress | ||
Cost of properties and related accumulated depreciation and amortization | ||
Total properties cost | 497.4 | 335.2 |
Other | ||
Cost of properties and related accumulated depreciation and amortization | ||
Total properties cost | $ 395.3 | $ 417.8 |
Properties - Narrative (Details
Properties - Narrative (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Property, Plant and Equipment [Abstract] | |||
Depreciation expense | $ 476.7 | $ 568.1 | $ 702 |
Goodwill and Intangible Asset_2
Goodwill and Intangible Assets - Goodwill (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Goodwill activity: | ||||
Gross carrying value of goodwill, beginning balance | $ 8,370.1 | $ 8,415.5 | ||
Accumulated impairment loss, beginning period | (2,217.5) | (2,264.5) | ||
Balance at beginning of year | 6,152.6 | 6,151 | ||
Foreign currency translation, net | (15.7) | 1.6 | ||
Goodwill impairment | (845) | 0 | $ (1,484.3) | |
Gross carrying value of goodwill, ending balance | $ 8,178 | 8,178 | 8,370.1 | 8,415.5 |
Accumulated impairment loss, ending period | (2,886.1) | (2,886.1) | (2,217.5) | (2,264.5) |
Balance at end of year | 5,291.9 | 5,291.9 | 6,152.6 | 6,151 |
Americas | ||||
Goodwill activity: | ||||
Gross carrying value of goodwill, beginning balance | 6,852.9 | 6,846.4 | ||
Accumulated impairment loss, beginning period | (700.3) | (695.4) | ||
Balance at beginning of year | 6,152.6 | 6,151 | ||
Foreign currency translation, net | (15.7) | 1.6 | ||
Goodwill impairment | (845) | (845) | ||
Gross carrying value of goodwill, ending balance | 6,790.4 | 6,790.4 | 6,852.9 | 6,846.4 |
Accumulated impairment loss, ending period | (1,498.5) | (1,498.5) | (700.3) | (695.4) |
Balance at end of year | 5,291.9 | 5,291.9 | 6,152.6 | 6,151 |
EMEA & APAC | ||||
Goodwill activity: | ||||
Gross carrying value of goodwill, beginning balance | 1,517.2 | 1,569.1 | ||
Accumulated impairment loss, beginning period | (1,517.2) | (1,569.1) | ||
Balance at beginning of year | 0 | 0 | ||
Foreign currency translation, net | 0 | 0 | ||
Goodwill impairment | 0 | |||
Gross carrying value of goodwill, ending balance | 1,387.6 | 1,387.6 | 1,517.2 | 1,569.1 |
Accumulated impairment loss, ending period | (1,387.6) | (1,387.6) | (1,517.2) | (1,569.1) |
Balance at end of year | $ 0 | $ 0 | $ 0 | $ 0 |
Goodwill and Intangible Asset_3
Goodwill and Intangible Assets - Narrative (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |||||
Dec. 31, 2022 | Mar. 31, 2022 | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | Oct. 01, 2022 | Oct. 01, 2021 | |
Schedule of Finite-Lived and Indefinite-Lived Intangible Assets [Line Items] | |||||||
Gross carrying value of goodwill | $ 8,178 | $ 8,178 | $ 8,370.1 | $ 8,415.5 | |||
Accumulated impairment losses | 2,886.1 | 2,886.1 | 2,217.5 | 2,264.5 | |||
Amortization of intangible assets | 208.1 | 218 | 220 | ||||
Goodwill impairment | 845 | 0 | 1,484.3 | ||||
Fair value in excess of carrying value, percentage | 15% | ||||||
Americas | Impairment losses | |||||||
Schedule of Finite-Lived and Indefinite-Lived Intangible Assets [Line Items] | |||||||
Special items, net | $ 28.6 | ||||||
Special items, noncontrolling interest | $ 12.1 | ||||||
Americas | |||||||
Schedule of Finite-Lived and Indefinite-Lived Intangible Assets [Line Items] | |||||||
Gross carrying value of goodwill | 6,790.4 | 6,790.4 | 6,852.9 | 6,846.4 | |||
Accumulated impairment losses | 1,498.5 | 1,498.5 | $ 700.3 | $ 695.4 | |||
Goodwill impairment | $ 845 | $ 845 | |||||
Discount rate | 8.75% | 8.25% | |||||
Percentage of fair value in excess of carrying amount | 6% |
Goodwill and Intangible Asset_4
Goodwill and Intangible Assets - Intangible Assets (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Intangible assets subject to amortization | ||
Accumulated amortization | $ (1,552.4) | $ (1,406.3) |
Intangible assets not subject to amortization | ||
Total Gross | 14,352.5 | 14,693.1 |
Total Net | 12,800.1 | 13,286.8 |
Brands | ||
Intangible assets not subject to amortization | ||
Intangible assets not subject to amortization | 8,148.6 | 8,197.9 |
Distribution networks | ||
Intangible assets not subject to amortization | ||
Intangible assets not subject to amortization | 746.4 | 800.5 |
Other | ||
Intangible assets not subject to amortization | ||
Intangible assets not subject to amortization | 307.6 | 307.6 |
Brands | ||
Intangible assets subject to amortization | ||
Gross | 4,861.1 | 5,081.8 |
Accumulated amortization | (1,416.7) | (1,267.1) |
Net | 3,444.4 | 3,814.7 |
License agreements and distribution rights | ||
Intangible assets subject to amortization | ||
Gross | 200 | 206.8 |
Accumulated amortization | (108) | (107.2) |
Net | 92 | 99.6 |
Other | ||
Intangible assets subject to amortization | ||
Gross | 88.8 | 98.5 |
Accumulated amortization | (27.7) | (32) |
Net | $ 61.1 | $ 66.5 |
Minimum | Brands | ||
Intangible assets subject to amortization | ||
Useful life | 10 years | 10 years |
Minimum | License agreements and distribution rights | ||
Intangible assets subject to amortization | ||
Useful life | 15 years | 15 years |
Minimum | Other | ||
Intangible assets subject to amortization | ||
Useful life | 5 years | 3 years |
Maximum | Brands | ||
Intangible assets subject to amortization | ||
Useful life | 50 years | 50 years |
Maximum | License agreements and distribution rights | ||
Intangible assets subject to amortization | ||
Useful life | 20 years | 20 years |
Maximum | Other | ||
Intangible assets subject to amortization | ||
Useful life | 40 years | 40 years |
Goodwill and Intangible Asset_5
Goodwill and Intangible Assets - Amortization Expense (Details) $ in Millions | Dec. 31, 2022 USD ($) |
Goodwill and Intangible Assets Disclosure [Abstract] | |
2023 | $ 204.1 |
2024 | 202.7 |
2025 | 202.7 |
2026 | 184.2 |
2027 | $ 119.8 |
Accounts Payable and Other Cu_3
Accounts Payable and Other Current Liabilities - Summary (Details) - USD ($) $ in Millions | Dec. 31, 2022 | Dec. 31, 2021 |
Payables and Accruals [Abstract] | ||
Accounts payable and accrued trade payables | $ 2,068.2 | $ 2,098.1 |
Accrued compensation | 249.2 | 243.7 |
Accrued excise and other non-income related taxes | 239.9 | 242.6 |
Accrued interest | 87.6 | 91.4 |
Returnable container deposit liabilities | 116.8 | 114.9 |
Current operating lease liabilities | 44.7 | 45.4 |
Other | 171.9 | 271.2 |
Accounts payable and other current liabilities | $ 2,978.3 | $ 3,107.3 |
Leases - Narrative (Details)
Leases - Narrative (Details) - Master railcar leases $ in Millions | Dec. 31, 2022 USD ($) |
Leases [Abstract] | |
Liability for operating lease not yet commenced | $ 54.6 |
Lessee, Lease, Description [Line Items] | |
Liability for operating lease not yet commenced | $ 54.6 |
Leases - Components of Lease Ex
Leases - Components of Lease Expense (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Leases [Abstract] | |||
Operating lease expense | $ 72.5 | $ 73.2 | $ 71.4 |
Finance lease expense | 9.5 | 10.4 | 11.5 |
Total lease expense | $ 82 | $ 83.6 | $ 82.9 |
Leases - Supplemental Cash Flow
Leases - Supplemental Cash Flow Information (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Cash paid for amounts included in the measurements of lease liabilities | |||
Operating cash flows for operating leases | $ 52.5 | $ 56.8 | $ 53.2 |
Operating cash flows for finance leases | 3.6 | 4.5 | 7.6 |
Financing cash flows for finance leases | 4.4 | 3.6 | 34.5 |
Supplemental non-cash information on right-of-use assets obtained in exchange for new lease liabilities | |||
Operating leases | 63.9 | 34 | 28.5 |
Finance leases | $ 3.8 | $ 7.5 | $ 5.4 |
Leases - Assets and Liabilities
Leases - Assets and Liabilities, Lessee (Details) - USD ($) $ in Millions | Dec. 31, 2022 | Dec. 31, 2021 |
Operating Leases | ||
Operating Lease, Right-of-Use Asset, Statement of Financial Position [Extensible List] | Other assets | Other assets |
Operating lease right-of-use assets | $ 132.7 | $ 119.1 |
Operating Lease, Liability, Current, Statement of Financial Position [Extensible List] | Accounts payable and other current liabilities | Accounts payable and other current liabilities |
Current operating lease liabilities | $ 44.7 | $ 45.4 |
Operating Lease, Liability, Noncurrent, Statement of Financial Position [Extensible List] | Other liabilities | Other liabilities |
Non-current operating lease liabilities | $ 99.3 | $ 87.8 |
Operating Lease, Liability | $ 144 | $ 133.2 |
Finance Leases | ||
Finance Lease, Right-of-Use Asset, Statement of Financial Position [Extensible List] | Properties, net | Properties, net |
Finance lease right-of-use assets | $ 50.2 | $ 61.5 |
Finance Lease, Liability, Current, Statement of Financial Position [Extensible List] | Debt, Current | Debt, Current |
Current finance lease liabilities | $ 5.3 | $ 4.6 |
Finance Lease, Liability, Noncurrent, Statement of Financial Position [Extensible List] | Long-term debt | Long-term debt |
Non-current finance lease liabilities | $ 56.2 | $ 62.6 |
Total finance lease liabilities | $ 61.5 | $ 67.2 |
Weighted-Average Remaining Lease Term (Years) | ||
Operating leases, weighted-average remaining lease term (in years) | 4 years 10 months 24 days | |
Finance leases, weighted average remaining lease term (in years) | 10 years 9 months 18 days | |
Weighted-Average Discount Rate | ||
Operating leases, weighted average discount rate | 4% | |
Finance leases, weighted average discount rate | 6.30% |
Leases - Maturity of Operating
Leases - Maturity of Operating and Finance Lease Liabilities (Details) - USD ($) $ in Millions | Dec. 31, 2022 | Dec. 31, 2021 |
Operating Leases | ||
2023 | $ 50 | |
2024 | 34.6 | |
2025 | 26.6 | |
2026 | 18.5 | |
2027 | 8.2 | |
Thereafter | 21.1 | |
Total lease payments | 159 | |
Less: interest | (15) | |
Present value of operating lease liabilities | 144 | $ 133.2 |
Finance Leases | ||
2023 | 8.6 | |
2024 | 8.5 | |
2025 | 8.1 | |
2026 | 11.4 | |
2027 | 5.1 | |
Thereafter | 45.1 | |
Total lease payments | 86.8 | |
Less: interest | (25.3) | |
Finance leases | $ 61.5 | $ 67.2 |
Debt - Schedule of Debt Obligat
Debt - Schedule of Debt Obligations (Details) - USD ($) $ in Millions | Dec. 31, 2022 | Dec. 31, 2021 |
Debt Instrument [Line Items] | ||
Finance leases | $ 61.5 | $ 67.2 |
Less: unamortized debt discounts and debt issuance costs | (39.7) | (44.6) |
Total long-term debt (including current portion) | 6,541.4 | 7,155.2 |
Less: current portion of long-term debt | (376.2) | (508) |
Long-term debt | 6,165.2 | 6,647.2 |
Short-term borrowings | 20.9 | 6.9 |
Current portion of long-term debt | 376.2 | 508 |
Current portion of long-term debt and short-term borrowings | 397.1 | 514.9 |
Senior notes | $500 million 3.5% notes due May 2022 | ||
Debt Instrument [Line Items] | ||
Long-term debt, carrying amount | 0 | 500.9 |
Senior notes | CAD 500 million 2.84% notes due July 2023 | ||
Debt Instrument [Line Items] | ||
Long-term debt, carrying amount | 368.9 | 395.7 |
Senior notes | EUR 800 million 1.25% notes due July 2024 | ||
Debt Instrument [Line Items] | ||
Long-term debt, carrying amount | 856.4 | 909.6 |
Senior notes | CAD 500 million 3.44% notes due July 2026 | ||
Debt Instrument [Line Items] | ||
Long-term debt, carrying amount | 368.9 | 395.7 |
Senior notes | $2.0 billion 3.0% notes due July 2026 | ||
Debt Instrument [Line Items] | ||
Long-term debt, carrying amount | 2,000 | 2,000 |
Senior notes | $1.1 billion 5.0% notes due May 2042 | ||
Debt Instrument [Line Items] | ||
Long-term debt, carrying amount | 1,100 | 1,100 |
Senior notes | $1.8 billion 4.2% notes due July 2046 | ||
Debt Instrument [Line Items] | ||
Long-term debt, carrying amount | 1,800 | 1,800 |
Other | ||
Debt Instrument [Line Items] | ||
Long-term debt, carrying amount | $ 25.4 | $ 30.7 |
Debt - Schedule of Debt Oblig_2
Debt - Schedule of Debt Obligations (Parenthetical) (Details) | Dec. 31, 2022 USD ($) | Dec. 31, 2022 CAD ($) | Dec. 31, 2022 EUR (€) | Apr. 30, 2022 USD ($) |
Debt Instrument [Line Items] | ||||
Debt instrument, face amount | $ 500,000,000 | |||
$500 million 3.5% notes due May 2022 | ||||
Debt Instrument [Line Items] | ||||
Debt instrument, face amount | $ 500,000,000 | |||
Debt instrument, interest rate percentage | 3.50% | 3.50% | 3.50% | 3.50% |
CAD 500 million 2.84% notes due July 2023 | ||||
Debt Instrument [Line Items] | ||||
Debt instrument, face amount | $ 500,000,000 | |||
Debt instrument, interest rate percentage | 2.84% | 2.84% | 2.84% | |
EUR 800 million 1.25% notes due July 2024 | ||||
Debt Instrument [Line Items] | ||||
Debt instrument, face amount | € | € 800,000,000 | |||
Debt instrument, interest rate percentage | 1.25% | 1.25% | 1.25% | |
CAD 500 million 3.44% notes due July 2026 | ||||
Debt Instrument [Line Items] | ||||
Debt instrument, face amount | $ 500,000,000 | |||
Debt instrument, interest rate percentage | 3.44% | 3.44% | 3.44% | |
$2.0 billion 3.0% notes due July 2026 | ||||
Debt Instrument [Line Items] | ||||
Debt instrument, face amount | $ 2,000,000,000 | |||
Debt instrument, interest rate percentage | 3% | 3% | 3% | |
$1.1 billion 5.0% notes due May 2042 | ||||
Debt Instrument [Line Items] | ||||
Debt instrument, face amount | $ 1,100,000,000 | |||
Debt instrument, interest rate percentage | 5% | 5% | 5% | |
$1.8 billion 4.2% notes due July 2046 | ||||
Debt Instrument [Line Items] | ||||
Debt instrument, face amount | $ 1,800,000,000 | |||
Debt instrument, interest rate percentage | 4.20% | 4.20% | 4.20% |
Debt - Narrative (Details)
Debt - Narrative (Details) £ in Millions | 12 Months Ended | ||||||||||
Jul. 07, 2016 USD ($) | Dec. 31, 2022 USD ($) | Dec. 31, 2012 USD ($) | Dec. 31, 2022 CAD ($) | Dec. 31, 2022 EUR (€) | Dec. 31, 2022 GBP (£) | Apr. 30, 2022 USD ($) | Dec. 31, 2021 USD ($) | Dec. 31, 2016 CAD ($) | Dec. 31, 2016 EUR (€) | May 03, 2012 USD ($) | |
Debt Instrument [Line Items] | |||||||||||
Debt instrument, face amount | $ 500,000,000 | ||||||||||
Long-term debt, fair value | $ 5,900,000,000 | $ 7,700,000,000 | |||||||||
July 15, 2019 through July 15, 2046 | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Senior notes | $ 5,300,000,000 | ||||||||||
Long-term debt, gross | $ 3,800,000,000 | ||||||||||
Maturing July 15, 2023 and July 15, 2026 | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Senior notes | $ 1,000,000,000 | ||||||||||
Debt instrument, increase (decrease) in effective cost of borrowing | 0.60% | ||||||||||
EMEA&APAC | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Overdraft facility | $ 15,900,000 | 3,000,000 | |||||||||
Cash held in bank | 49,700,000 | 123,100,000 | |||||||||
Bank cash, net of overdrafts | 33,800,000 | 120,100,000 | |||||||||
Senior notes | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Debt instrument, face amount | $ 1,900,000,000 | ||||||||||
Proceeds from issuances of long-term debt | $ 1,900,000,000 | ||||||||||
Underwriting fees related to long-term debt | 14,700,000 | ||||||||||
Discounts to long-term debt | $ 4,600,000 | ||||||||||
Debt issuance costs capitalized | 8,700,000 | ||||||||||
Commercial paper | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Line of credit | $ 0 | 0 | |||||||||
CAD 500 million 3.44% notes due July 2026 | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Debt instrument, face amount | $ 500,000,000 | ||||||||||
Debt instrument, interest rate percentage | 3.44% | 3.44% | 3.44% | 3.44% | |||||||
CAD 500 million 3.44% notes due July 2026 | Senior notes | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Long-term debt, gross | $ 368,900,000 | 395,700,000 | |||||||||
Term of derivative | 10 years | ||||||||||
2016 notes | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Debt issuance costs capitalized | 31,000,000 | ||||||||||
$500 million 3.5% notes due May 2022 | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Debt instrument, face amount | $ 500,000,000 | ||||||||||
Debt instrument, interest rate percentage | 3.50% | 3.50% | 3.50% | 3.50% | 3.50% | ||||||
$500 million 3.5% notes due May 2022 | Senior notes | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Debt instrument, face amount | $ 500,000,000 | ||||||||||
Debt instrument, interest rate percentage | 3.50% | ||||||||||
Long-term debt, gross | $ 0 | 500,900,000 | |||||||||
JPY overdraft | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Revolving credit facility | 3,900,000 | ||||||||||
Line Of Credit CAD | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Line of credit facility, interest rate during period | 0.50% | ||||||||||
Overdraft facility and Line of Credit (GBP) | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Line of credit facility, maximum borrowing capacity | £ | £ 10 | ||||||||||
Line of credit facility, interest rate during period | 2.25% | ||||||||||
Line Of Credit USD | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Line of credit facility, maximum borrowing capacity | $ 10,000,000 | ||||||||||
Line of credit facility, interest rate during period | 5% | ||||||||||
USD, CAD and GBP Overdraft Facility | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Revolving credit facility | $ 0 | 0 | |||||||||
Maturing July 15, 2023 and July 15, 2026 | Senior notes | Interest rate swap | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Term of derivative | 10 years | ||||||||||
EUR 800 million 1.25% notes due July 2024 | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Debt instrument, face amount | € | € 800,000,000 | ||||||||||
Debt instrument, interest rate percentage | 1.25% | 1.25% | 1.25% | 1.25% | |||||||
Senior notes | € | € 800,000,000 | ||||||||||
EUR 800 million 1.25% notes due July 2024 | Senior notes | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Long-term debt, gross | $ 856,400,000 | 909,600,000 | |||||||||
Revolving credit facility | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Line of credit facility, maximum borrowing capacity | 1,500,000,000 | ||||||||||
Revolving credit facility | Line of credit | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Line of credit | $ 0 | $ 0 | |||||||||
Revolving credit facility | Line of credit | Quarter ending December 31, 2021 | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Quarterly leverage ratio, further reduction | 4 |
Debt - Schedule of Maturities (
Debt - Schedule of Maturities (Details) $ in Millions | Dec. 31, 2022 USD ($) |
Debt Disclosure [Abstract] | |
2023 | $ 389.8 |
2024 | 856.4 |
2025 | 0 |
2026 | 2,368.9 |
2027 | 0 |
Thereafter | 2,900 |
Total | $ 6,515.1 |
Debt - Schedule of Interest Cha
Debt - Schedule of Interest Charges (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Debt Disclosure [Abstract] | |||
Interest incurred | $ 257.4 | $ 269.1 | $ 282.3 |
Interest capitalized | (6.8) | (8.8) | (7.7) |
Interest expense | $ 250.6 | $ 260.3 | $ 274.6 |
Derivative Instruments and He_3
Derivative Instruments and Hedging Activities - Narrative (Details) | 1 Months Ended | 12 Months Ended | |||||||||||||
Jul. 07, 2016 | Jul. 31, 2021 USD ($) | Dec. 31, 2022 USD ($) | Dec. 31, 2015 USD ($) | Dec. 31, 2015 CAD ($) | Dec. 31, 2022 CAD ($) | Dec. 31, 2022 EUR (€) | Apr. 30, 2022 USD ($) | Jun. 30, 2021 USD ($) | Mar. 20, 2019 USD ($) | Mar. 20, 2019 EUR (€) | Dec. 31, 2018 USD ($) | Mar. 15, 2017 USD ($) | Dec. 31, 2016 EUR (€) | May 03, 2012 USD ($) | |
Derivatives: | |||||||||||||||
Debt instrument, face amount | $ 500,000,000 | ||||||||||||||
Maximum length of time hedged economic hedges | 60 months | ||||||||||||||
Cash flow hedge gain (loss) to be reclassified within twelve months | $ 2,000,000 | ||||||||||||||
Cash flow hedge gain (loss) to be reclassified within twelve months, term | 12 months | ||||||||||||||
Maximum length of time forecasted transactions are hedged in cash flow hedge | 3 years | ||||||||||||||
Cross currency swaps | |||||||||||||||
Derivatives: | |||||||||||||||
Notional amount | $ 400,000,000 | € 353,000,000 | |||||||||||||
Payments for derivative instrument, investing activities | $ 12,700,000 | ||||||||||||||
Loss on swap | $ 17,600,000 | ||||||||||||||
Forward starting interest rate swap | |||||||||||||||
Derivatives: | |||||||||||||||
Notional amount | $ 600,000,000 | $ 1,500,000,000 | |||||||||||||
Derivative terminated | $ 250,000,000 | ||||||||||||||
Loss on forward swap | $ 29,500,000 | $ 39,200,000 | |||||||||||||
Cumulative gain (loss) on cash flow hedge, after tax | $ 10,900,000 | ||||||||||||||
Foreign currency forwards | |||||||||||||||
Derivatives: | |||||||||||||||
Maximum term, commodity swap contract hedge | 60 months | ||||||||||||||
Senior notes | |||||||||||||||
Derivatives: | |||||||||||||||
Debt instrument, face amount | $ 1,900,000,000 | ||||||||||||||
$500 million 3.5% notes due May 2022 | |||||||||||||||
Derivatives: | |||||||||||||||
Debt instrument, face amount | $ 500,000,000 | ||||||||||||||
Debt instrument, interest rate percentage | 3.50% | 3.50% | 3.50% | 3.50% | |||||||||||
$500 million 3.5% notes due May 2022 | Senior notes | |||||||||||||||
Derivatives: | |||||||||||||||
Debt instrument, face amount | $ 500,000,000 | ||||||||||||||
Debt instrument, interest rate percentage | 3.50% | ||||||||||||||
EUR 800 million 1.25% notes due July 2024 | |||||||||||||||
Derivatives: | |||||||||||||||
Senior notes | € | € 800,000,000 | ||||||||||||||
Debt instrument, face amount | € | € 800,000,000 | ||||||||||||||
Debt instrument, interest rate percentage | 1.25% | 1.25% | 1.25% | ||||||||||||
$1.0 billion 2.1% notes due 2021 | Senior notes | |||||||||||||||
Derivatives: | |||||||||||||||
Debt instrument, face amount | $ 1,000,000,000 | ||||||||||||||
$1.0 billion 2.1% notes due 2021 | Senior notes | Parent Guarantor and 2007 Issuer | |||||||||||||||
Derivatives: | |||||||||||||||
Debt instrument, interest rate percentage | 2.10% | ||||||||||||||
CAD 500 million 3.44% notes due July 2026 | |||||||||||||||
Derivatives: | |||||||||||||||
Debt instrument, face amount | $ 500,000,000 | ||||||||||||||
Debt instrument, interest rate percentage | 3.44% | 3.44% | 3.44% | ||||||||||||
CAD 500 million 3.44% notes due July 2026 | Senior notes | |||||||||||||||
Derivatives: | |||||||||||||||
Term of derivative | 10 years |
Derivative Instruments and He_4
Derivative Instruments and Hedging Activities - Derivative Fair Value (Details) - Fair Value, Measurements, Recurring - USD ($) $ in Millions | Dec. 31, 2022 | Dec. 31, 2021 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivatives, fair value, net | $ 116.6 | $ 128.6 |
Interest rate swaps | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivatives, fair value, net | 40 | (170.8) |
Foreign currency forwards | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivatives, fair value, net | 7.6 | (1.5) |
Commodity swaps and options | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivatives, fair value, net | 69 | 300.9 |
Quoted prices in active markets (Level 1) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivatives, fair value, net | 0 | 0 |
Quoted prices in active markets (Level 1) | Interest rate swaps | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivatives, fair value, net | 0 | 0 |
Quoted prices in active markets (Level 1) | Foreign currency forwards | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivatives, fair value, net | 0 | 0 |
Quoted prices in active markets (Level 1) | Commodity swaps and options | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivatives, fair value, net | 0 | 0 |
Significant observable inputs (Level 2) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivatives, fair value, net | 116.6 | 128.6 |
Significant observable inputs (Level 2) | Interest rate swaps | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivatives, fair value, net | 40 | (170.8) |
Significant observable inputs (Level 2) | Foreign currency forwards | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivatives, fair value, net | 7.6 | (1.5) |
Significant observable inputs (Level 2) | Commodity swaps and options | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivatives, fair value, net | 69 | 300.9 |
Significant unobservable inputs (Level 3) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivatives, fair value, net | 0 | 0 |
Significant unobservable inputs (Level 3) | Interest rate swaps | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivatives, fair value, net | 0 | 0 |
Significant unobservable inputs (Level 3) | Foreign currency forwards | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivatives, fair value, net | 0 | 0 |
Significant unobservable inputs (Level 3) | Commodity swaps and options | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivatives, fair value, net | $ 0 | $ 0 |
Derivative Instruments and He_5
Derivative Instruments and Hedging Activities - Fair Value Balance Sheet (Details) - USD ($) $ in Millions | Dec. 31, 2022 | Dec. 31, 2021 |
Derivatives designated as hedging instruments: | ||
Derivatives designated as hedging instruments: | ||
Derivative asset, fair value, designated as hedging instrument | $ 47.8 | $ 1.1 |
Derivative liability, fair value, designated as hedging instrument | (0.2) | (173.4) |
Derivatives designated as hedging instruments: | Interest rate swaps | Other Current Assets | ||
Derivatives designated as hedging instruments: | ||
Derivative asset, fair value, designated as hedging instrument | 0 | |
Derivatives designated as hedging instruments: | Interest rate swaps | Other Noncurrent Assets | ||
Derivatives designated as hedging instruments: | ||
Derivative asset, fair value, designated as hedging instrument | 40 | 0 |
Derivatives designated as hedging instruments: | Interest rate swaps | Accounts payable and other current liabilities | ||
Derivatives designated as hedging instruments: | ||
Derivative liability, fair value, designated as hedging instrument | (67.7) | |
Derivatives designated as hedging instruments: | Interest rate swaps | Other Liabilities | ||
Derivatives designated as hedging instruments: | ||
Derivative liability, fair value, designated as hedging instrument | 0 | (103.1) |
Derivatives designated as hedging instruments: | Foreign currency forwards | Other Current Assets | ||
Derivatives designated as hedging instruments: | ||
Derivative asset, fair value, designated as hedging instrument | 6.2 | 0.5 |
Derivatives designated as hedging instruments: | Foreign currency forwards | Other Noncurrent Assets | ||
Derivatives designated as hedging instruments: | ||
Derivative asset, fair value, designated as hedging instrument | 1.6 | 0.6 |
Derivatives designated as hedging instruments: | Foreign currency forwards | Accounts payable and other current liabilities | ||
Derivatives designated as hedging instruments: | ||
Derivative liability, fair value, designated as hedging instrument | (0.1) | (2.4) |
Derivatives designated as hedging instruments: | Foreign currency forwards | Other Liabilities | ||
Derivatives designated as hedging instruments: | ||
Derivative liability, fair value, designated as hedging instrument | (0.1) | (0.2) |
Derivatives not designated as hedging instruments: | ||
Derivatives not designated as hedging instruments: | ||
Derivative asset, not designated as hedging instrument, fair value | 94.3 | 303.2 |
Derivative liability, not designated as hedging instrument, fair value | (25.3) | (2.3) |
Derivatives not designated as hedging instruments: | Commodity swaps | ||
Derivatives designated as hedging instruments: | ||
Notional amount | 525.2 | 722.1 |
Derivatives not designated as hedging instruments: | ||
Notional amount | 525.2 | 722.1 |
Derivatives not designated as hedging instruments: | Commodity swaps | Other Current Assets | ||
Derivatives not designated as hedging instruments: | ||
Derivative asset, not designated as hedging instrument, fair value | 86.1 | 225.1 |
Derivatives not designated as hedging instruments: | Commodity swaps | Other Noncurrent Assets | ||
Derivatives not designated as hedging instruments: | ||
Derivative asset, not designated as hedging instrument, fair value | 7.4 | 77.1 |
Derivatives not designated as hedging instruments: | Commodity swaps | Accounts payable and other current liabilities | ||
Derivatives not designated as hedging instruments: | ||
Derivative liability, not designated as hedging instrument, fair value | (14.1) | (1.1) |
Derivatives not designated as hedging instruments: | Commodity swaps | Other Liabilities | ||
Derivatives not designated as hedging instruments: | ||
Derivative liability, not designated as hedging instrument, fair value | (10.4) | (0.3) |
Derivatives not designated as hedging instruments: | Commodity options | ||
Derivatives designated as hedging instruments: | ||
Notional amount | 19.7 | 68.2 |
Derivatives not designated as hedging instruments: | ||
Notional amount | 19.7 | 68.2 |
Derivatives not designated as hedging instruments: | Commodity options | Other Current Assets | ||
Derivatives not designated as hedging instruments: | ||
Derivative asset, not designated as hedging instrument, fair value | 0.8 | 1 |
Derivatives not designated as hedging instruments: | Commodity options | Accounts payable and other current liabilities | ||
Derivatives not designated as hedging instruments: | ||
Derivative liability, not designated as hedging instrument, fair value | (0.8) | (0.9) |
Cash Flow Hedges | Derivatives designated as hedging instruments: | Interest rate swaps | ||
Derivatives designated as hedging instruments: | ||
Notional amount | 1,000 | 1,500 |
Derivatives not designated as hedging instruments: | ||
Notional amount | 1,000 | 1,500 |
Cash Flow Hedges | Derivatives designated as hedging instruments: | Foreign currency forwards | ||
Derivatives designated as hedging instruments: | ||
Notional amount | 176.6 | 170.8 |
Derivatives not designated as hedging instruments: | ||
Notional amount | $ 176.6 | $ 170.8 |
Derivative Instruments and He_6
Derivative Instruments and Hedging Activities - Cash Flow Hedges and Net Investment Hedges (Details) € in Millions, $ in Millions | 12 Months Ended | |||
Dec. 31, 2022 USD ($) | Dec. 31, 2021 USD ($) | Dec. 31, 2020 USD ($) | Dec. 31, 2016 EUR (€) | |
EUR 800 million 1.25% notes due July 2024 | ||||
Derivatives: | ||||
Senior notes | € | € 800 | |||
Cash Flow Hedges | ||||
Derivatives: | ||||
Amount of gain (loss) recognized in OCI on derivatives | $ 209.7 | $ 51.1 | $ (113.5) | |
Amount of gain (loss) recognized from AOCI into income on derivative | (12.9) | (7.5) | 0.5 | |
Net Investment Hedges | ||||
Derivatives: | ||||
Amount of gain (loss) recognized in OCI | 53.2 | 76.5 | (113.5) | |
Amount of gain (loss) recognized in income (amount excluded from effectiveness testing) | 0 | 6.1 | 14.2 | |
Net Investment Hedges | Other non-operating income (expense), net | EUR 800 million 1.25% notes due July 2024 | Senior notes | ||||
Derivatives: | ||||
Amount of gain (loss) recognized in OCI | 53.2 | 67.7 | (80.3) | |
Amount of gain (loss) recognized in income (amount excluded from effectiveness testing) | 0 | 0 | 0 | |
Forward starting interest rate swap | Cash Flow Hedges | ||||
Derivatives: | ||||
Amount of gain (loss) recognized in OCI on derivatives | 198.9 | 50.7 | (110) | |
Forward starting interest rate swap | Cash Flow Hedges | Interest expense, net | ||||
Derivatives: | ||||
Amount of gain (loss) recognized from AOCI into income on derivative | (14.3) | (4.8) | (2.9) | |
Foreign currency forwards | Cash Flow Hedges | ||||
Derivatives: | ||||
Amount of gain (loss) recognized in OCI on derivatives | 10.8 | 0.4 | (3.5) | |
Foreign currency forwards | Cash Flow Hedges | Cost of goods sold | ||||
Derivatives: | ||||
Amount of gain (loss) recognized from AOCI into income on derivative | 1.8 | (3.5) | 4.6 | |
Foreign currency forwards | Cash Flow Hedges | Other non-operating income (expense), net | ||||
Derivatives: | ||||
Amount of gain (loss) recognized from AOCI into income on derivative | $ (0.4) | 0.8 | (1.2) | |
Cross currency swaps | Net Investment Hedges | Interest expense, net | ||||
Derivatives: | ||||
Amount of gain (loss) recognized in OCI | 8.8 | (33.2) | ||
Amount of gain (loss) recognized in income (amount excluded from effectiveness testing) | $ 6.1 | $ 14.2 |
Derivative Instruments and He_7
Derivative Instruments and Hedging Activities - Other Derivatives (Details) - Derivatives not designated as hedging instruments: - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Gain (Loss) on Derivative Instruments: | |||
Amount of gain (loss) recognized in income on derivative | $ 42.6 | $ 403.2 | $ 26.1 |
Commodity swaps | Cost of goods sold | |||
Gain (Loss) on Derivative Instruments: | |||
Amount of gain (loss) recognized in income on derivative | $ 42.6 | 403.4 | 28.5 |
Commodity options | Cost of goods sold | |||
Gain (Loss) on Derivative Instruments: | |||
Amount of gain (loss) recognized in income on derivative | 0.1 | ||
Warrants | Other non-operating income (expense), net | |||
Gain (Loss) on Derivative Instruments: | |||
Amount of gain (loss) recognized in income on derivative | $ (0.3) | $ (2.4) |
Employee Retirement Plans and_3
Employee Retirement Plans and Postretirement Benefits - Narrative (Details) £ in Millions, $ in Millions | 1 Months Ended | 3 Months Ended | 6 Months Ended | 12 Months Ended | ||
Dec. 31, 2022 USD ($) | Sep. 30, 2022 USD ($) | Jun. 30, 2022 GBP (£) | Dec. 31, 2022 USD ($) | Dec. 31, 2021 USD ($) | Dec. 31, 2020 USD ($) | |
Defined Benefit Plan Disclosure [Line Items] | ||||||
Pension plan contribution | $ 3.6 | $ 7.1 | $ 8.2 | |||
Benefits paid, including prescription drugs | 33 | 33.8 | 33 | |||
Pension plan, annuity contract | $ (340) | |||||
Pension plan, longevity swap, hedged amount | £ | £ 950 | |||||
Defined contribution plan, contribution during the period | 73 | 77.8 | $ 75.5 | |||
Pension | ||||||
Defined Benefit Plan Disclosure [Line Items] | ||||||
Accumulated benefit obligation | $ 3,000 | 3,000 | $ 5,100 | |||
Increase (decrease) in accumulated benefit obligation | (42.5) | |||||
Expected future employer contributions | 4 | 4 | ||||
Expected future benefit payment, next year | 251.4 | 251.4 | ||||
OPEB | ||||||
Defined Benefit Plan Disclosure [Line Items] | ||||||
Expected future benefit payment, next year | 39.5 | $ 39.5 | ||||
U.S. defined contribution plans | ||||||
Defined Benefit Plan Disclosure [Line Items] | ||||||
Defined contribution plan, contributions by employer, low end of the range (as a percent) | 5% | |||||
Defined contribution plan, contributions by employer, high end of the range (as a percent) | 11% | |||||
U.K. and Canadian defined contribution plans | ||||||
Defined Benefit Plan Disclosure [Line Items] | ||||||
Defined contribution plan, contributions by employer, low end of the range (as a percent) | 4% | |||||
Defined contribution plan, contributions by employer, high end of the range (as a percent) | 8.50% | |||||
UK Pension Plan | Pension | ||||||
Defined Benefit Plan Disclosure [Line Items] | ||||||
Statutory valuation period | 3 years | |||||
Canadian Defined Benefit Pension Plans | ||||||
Defined Benefit Plan Disclosure [Line Items] | ||||||
Pension plan, annuity contract | $ (185) | |||||
Percentage of plan participants in jurisdictions allowing company to discharge pension liability | 0.93 | |||||
Percentage of assets and liabilities written off | 0.93 | |||||
Canadian Defined Benefit Pension Plans | Pension | ||||||
Defined Benefit Plan Disclosure [Line Items] | ||||||
Expected surplus to be used for benefit payments | $ 5 | |||||
UK defined contribution plan | ||||||
Defined Benefit Plan Disclosure [Line Items] | ||||||
Defined contribution plan, contributions by employer, high end of the range (as a percent) | 10% |
Employee Retirement Plans and_4
Employee Retirement Plans and Postretirement Benefits - Net Periodic Pension (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Defined Benefit Plan Disclosure [Line Items] | |||
Interest cost | $ 120 | $ 108.5 | |
Total other pension and postretirement (benefit) cost, net | (36.6) | (46.4) | $ (30.3) |
Pension | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Service cost | 1.3 | 2.7 | 2.7 |
Interest cost | 103.9 | 93.9 | 120.5 |
Expected return on plan assets, net of expenses | (154.2) | (161.6) | (161.8) |
Amortization of prior service (benefit) cost | 0.3 | 0.4 | 0.3 |
Amortization of net actuarial (gain) loss | 5.6 | 8.7 | 7.3 |
Curtailment, settlement or special termination benefit (gain) loss | 2.9 | 5.4 | 0 |
Expected participant contributions | (0.3) | (0.4) | (0.4) |
Total other pension and postretirement (benefit) cost, net | (41.8) | (53.6) | (34.1) |
Net periodic pension and OPEB (benefit) cost | (40.5) | (50.9) | (31.4) |
Pension | Canadian Defined Benefit Pension Plans | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Curtailment, settlement or special termination benefit (gain) loss | 8 | ||
Pension | U.S. Defined Benefit Pension Plans | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Curtailment, settlement or special termination benefit (gain) loss | (5.3) | ||
OPEB | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Service cost | 5.5 | 6 | 6 |
Interest cost | 16.1 | 14.6 | 18.8 |
Expected return on plan assets, net of expenses | 0 | 0 | 0.2 |
Amortization of prior service (benefit) cost | (0.7) | (0.7) | (0.7) |
Amortization of net actuarial (gain) loss | (10.2) | (6.7) | (14.5) |
Curtailment, settlement or special termination benefit (gain) loss | 0 | 0 | 0 |
Expected participant contributions | 0 | 0 | 0 |
Total other pension and postretirement (benefit) cost, net | 5.2 | 7.2 | 3.8 |
Net periodic pension and OPEB (benefit) cost | 10.7 | 13.2 | 9.8 |
Consolidated | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Service cost | 6.8 | 8.7 | 8.7 |
Interest cost | 120 | 108.5 | 139.3 |
Expected return on plan assets, net of expenses | (154.2) | (161.6) | (161.6) |
Amortization of prior service (benefit) cost | (0.4) | (0.3) | (0.4) |
Amortization of net actuarial (gain) loss | (4.6) | 2 | (7.2) |
Curtailment, settlement or special termination benefit (gain) loss | 2.9 | 5.4 | 0 |
Expected participant contributions | (0.3) | (0.4) | (0.4) |
Total other pension and postretirement (benefit) cost, net | (36.6) | (46.4) | (30.3) |
Net periodic pension and OPEB (benefit) cost | $ (29.8) | $ (37.7) | $ (21.6) |
Employee Retirement Plans and_5
Employee Retirement Plans and Postretirement Benefits - Projected Benefit Obligation (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Change in benefit obligation | |||
Prior year benefit obligation | $ 5,744.5 | $ 6,276.2 | |
Service cost, net of expected employee contributions | 6.5 | 8.3 | |
Interest cost | 120 | 108.5 | |
Actual employee contributions | 0.3 | 0.4 | |
Actuarial (gain) loss | (1,325.6) | (264.7) | |
Plan amendments | (0.1) | 0 | |
Benefits paid | (302.5) | (333.4) | |
Curtailment, settlement and special termination | (460.4) | (35.4) | |
Foreign currency exchange rate change | (326.4) | (15.4) | |
Benefit obligation at end of year | 3,456.3 | 5,744.5 | $ 6,276.2 |
Change in plan assets | |||
Prior year fair value of assets | 5,667.5 | 5,958.4 | |
Actual return on plan assets | (1,272.9) | 55.5 | |
Employer contributions | 38.2 | 42.5 | |
Curtailment, settlement and special termination | (460.6) | (35.4) | |
Benefits and plan expenses paid | (302.5) | (333.4) | |
Foreign currency exchange rate change | (333.2) | (20.5) | |
Fair value of plan assets at end of year | 3,336.8 | 5,667.5 | 5,958.4 |
Funded (underfunded) status | (119.5) | (77) | |
Amounts recognized in the Consolidated Balance Sheets | |||
Other non-current assets | 397.2 | 622.9 | |
Accounts payable and other current liabilities | (43.4) | (45.5) | |
Pension and postretirement benefits | (473.3) | (654.4) | |
Net amounts recognized | (119.5) | (77) | |
Amounts in Accumulated Other Comprehensive Loss (Income) not yet recognized as components of net periodic pension cost or (benefit), pre-tax: | |||
Net actuarial (gain) loss | 488.2 | 411.1 | |
Net prior service (benefit) cost | 8.9 | 6.9 | |
Total not yet recognized | 497.1 | 418 | |
Pension | |||
Change in benefit obligation | |||
Prior year benefit obligation | 5,095.8 | 5,571.5 | |
Service cost, net of expected employee contributions | 1 | 2.3 | |
Interest cost | 103.9 | 93.9 | 120.5 |
Actual employee contributions | 0.3 | 0.4 | |
Actuarial (gain) loss | (1,181) | (227.4) | |
Plan amendments | 0 | 0 | |
Benefits paid | (263.8) | (293.1) | |
Curtailment, settlement and special termination | (460.6) | (35.4) | |
Foreign currency exchange rate change | (317.6) | (16.4) | |
Benefit obligation at end of year | 2,978 | 5,095.8 | 5,571.5 |
Change in plan assets | |||
Prior year fair value of assets | 5,667.5 | 5,958.4 | |
Actual return on plan assets | (1,272.9) | 55.5 | |
Employer contributions | (0.5) | 2.2 | |
Curtailment, settlement and special termination | (460.6) | (35.4) | |
Benefits and plan expenses paid | (263.8) | (293.1) | |
Foreign currency exchange rate change | (333.2) | (20.5) | |
Fair value of plan assets at end of year | 3,336.8 | 5,667.5 | 5,958.4 |
Funded (underfunded) status | 358.8 | 571.7 | |
Amounts recognized in the Consolidated Balance Sheets | |||
Other non-current assets | 397.2 | 622.9 | |
Accounts payable and other current liabilities | (3.9) | (4.1) | |
Pension and postretirement benefits | (34.5) | (47.1) | |
Net amounts recognized | 358.8 | 571.7 | |
Funded status: | |||
Accumulated benefit obligation | 38.4 | 51.2 | |
Projected benefit obligation | 38.4 | 51.2 | |
Fair value of plan assets | 0 | 0 | |
Amounts in Accumulated Other Comprehensive Loss (Income) not yet recognized as components of net periodic pension cost or (benefit), pre-tax: | |||
Net actuarial (gain) loss | 766.4 | 553.4 | |
Net prior service (benefit) cost | 9.7 | 10.1 | |
Total not yet recognized | 776.1 | 563.5 | |
OPEB | |||
Change in benefit obligation | |||
Prior year benefit obligation | 648.7 | 704.7 | |
Service cost, net of expected employee contributions | 5.5 | 6 | |
Interest cost | 16.1 | 14.6 | 18.8 |
Actual employee contributions | 0 | 0 | |
Actuarial (gain) loss | (144.6) | (37.3) | |
Plan amendments | (0.1) | 0 | |
Benefits paid | (38.7) | (40.3) | |
Curtailment, settlement and special termination | 0.2 | 0 | |
Foreign currency exchange rate change | (8.8) | 1 | |
Benefit obligation at end of year | 478.3 | 648.7 | 704.7 |
Change in plan assets | |||
Prior year fair value of assets | 0 | 0 | |
Actual return on plan assets | 0 | 0 | |
Employer contributions | 38.7 | 40.3 | |
Curtailment, settlement and special termination | 0 | 0 | |
Benefits and plan expenses paid | (38.7) | (40.3) | |
Foreign currency exchange rate change | 0 | 0 | |
Fair value of plan assets at end of year | 0 | 0 | $ 0 |
Funded (underfunded) status | (478.3) | (648.7) | |
Amounts recognized in the Consolidated Balance Sheets | |||
Other non-current assets | 0 | 0 | |
Accounts payable and other current liabilities | (39.5) | (41.4) | |
Pension and postretirement benefits | (438.8) | (607.3) | |
Net amounts recognized | (478.3) | (648.7) | |
Amounts in Accumulated Other Comprehensive Loss (Income) not yet recognized as components of net periodic pension cost or (benefit), pre-tax: | |||
Net actuarial (gain) loss | (278.2) | (142.3) | |
Net prior service (benefit) cost | (0.8) | (3.2) | |
Total not yet recognized | $ (279) | $ (145.5) |
Employee Retirement Plans and_6
Employee Retirement Plans and Postretirement Benefits - Weighted Average Assumptions (Details) | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Pension | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Discount rate | 2.27% | 1.84% | 2.55% |
Rate of compensation increase | 2% | 2% | 2% |
Expected return on plan assets | 3.11% | 3.03% | 3.24% |
Discount rate | 5.01% | 2.27% | |
Rate of compensation increase | 2% | 2% | |
OPEB | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Discount rate | 2.59% | 2.10% | 2.91% |
Discount rate | 4.90% | 2.59% | |
OPEB | Maximum | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Health care cost trend rate | 6% | 6% | 6.25% |
OPEB | Maximum | Determining PBO | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Health care cost trend rate | 6.50% | 6% | |
OPEB | Minimum | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Health care cost trend rate | 3.57% | 3.57% | 3.57% |
OPEB | Minimum | Determining PBO | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Health care cost trend rate | 3.57% | 3.57% |
Employee Retirement Plans and_7
Employee Retirement Plans and Postretirement Benefits - Target And Actual Allocations (Details) | Dec. 31, 2022 |
Equities | |
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |
Target allocations | 7.90% |
Actual allocations | 12.50% |
Fixed income | |
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |
Target allocations | 69.40% |
Actual allocations | 65.20% |
Real estate | |
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |
Target allocations | 5.40% |
Actual allocations | 5.30% |
Annuities and longevity swap | |
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |
Target allocations | 13.80% |
Actual allocations | 13.80% |
Other | |
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |
Target allocations | 3.50% |
Actual allocations | 3.20% |
Employee Retirement Plans and_8
Employee Retirement Plans and Postretirement Benefits - Pension Fair Value Hierarchy (Details) - USD ($) $ in Millions | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 |
Defined Benefit Plan Disclosure [Line Items] | |||
Defined benefit plan assets | $ 3,336.8 | $ 5,667.5 | $ 5,958.4 |
Pension | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Defined benefit plan assets | 3,336.8 | 5,667.5 | 5,958.4 |
Fair Value, Inputs, Level 1, 2 and 3 | Pension | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Defined benefit plan assets | 1,264.6 | 2,410.1 | |
Quoted prices in active markets (Level 1) | Pension | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Defined benefit plan assets | (149.1) | (276.7) | |
Significant observable inputs (Level 2) | Pension | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Defined benefit plan assets | 926.7 | 1,932.3 | |
Significant unobservable inputs (Level 3) | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Defined benefit plan assets | 487 | 754.5 | $ 856.3 |
Significant unobservable inputs (Level 3) | Pension | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Defined benefit plan assets | 487 | 754.5 | |
Cash | Fair Value, Inputs, Level 1, 2 and 3 | Pension | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Defined benefit plan assets | 99.3 | 198.4 | |
Cash | Quoted prices in active markets (Level 1) | Pension | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Defined benefit plan assets | 99.3 | 198.4 | |
Cash | Significant observable inputs (Level 2) | Pension | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Defined benefit plan assets | 0 | 0 | |
Cash | Significant unobservable inputs (Level 3) | Pension | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Defined benefit plan assets | 0 | 0 | |
Trades awaiting settlement | Fair Value, Inputs, Level 1, 2 and 3 | Pension | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Defined benefit plan assets | 32.7 | 2.1 | |
Trades awaiting settlement | Quoted prices in active markets (Level 1) | Pension | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Defined benefit plan assets | 32.7 | 2.1 | |
Trades awaiting settlement | Significant observable inputs (Level 2) | Pension | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Defined benefit plan assets | 0 | 0 | |
Trades awaiting settlement | Significant unobservable inputs (Level 3) | Pension | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Defined benefit plan assets | 0 | 0 | |
Bank deposits, short-term bills and notes | Fair Value, Inputs, Level 1, 2 and 3 | Pension | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Defined benefit plan assets | 7 | 25.5 | |
Bank deposits, short-term bills and notes | Quoted prices in active markets (Level 1) | Pension | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Defined benefit plan assets | 0 | 0 | |
Bank deposits, short-term bills and notes | Significant observable inputs (Level 2) | Pension | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Defined benefit plan assets | 7 | 25.5 | |
Bank deposits, short-term bills and notes | Significant unobservable inputs (Level 3) | Pension | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Defined benefit plan assets | 0 | 0 | |
Government debt securities | Fair Value, Inputs, Level 1, 2 and 3 | Pension | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Defined benefit plan assets | 422.6 | 751 | |
Government debt securities | Quoted prices in active markets (Level 1) | Pension | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Defined benefit plan assets | 0 | 0 | |
Government debt securities | Significant observable inputs (Level 2) | Pension | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Defined benefit plan assets | 422.6 | 751 | |
Government debt securities | Significant unobservable inputs (Level 3) | Pension | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Defined benefit plan assets | 0 | 0 | |
Corporate debt securities | Fair Value, Inputs, Level 1, 2 and 3 | Pension | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Defined benefit plan assets | 89.1 | 142 | |
Corporate debt securities | Quoted prices in active markets (Level 1) | Pension | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Defined benefit plan assets | 0 | 0 | |
Corporate debt securities | Significant observable inputs (Level 2) | Pension | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Defined benefit plan assets | 89.1 | 142 | |
Corporate debt securities | Significant unobservable inputs (Level 3) | Pension | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Defined benefit plan assets | 0 | 0 | |
Interest and inflation linked assets | Fair Value, Inputs, Level 1, 2 and 3 | Pension | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Defined benefit plan assets | 420.6 | 1,029.7 | |
Interest and inflation linked assets | Quoted prices in active markets (Level 1) | Pension | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Defined benefit plan assets | 0 | 0 | |
Interest and inflation linked assets | Significant observable inputs (Level 2) | Pension | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Defined benefit plan assets | 408 | 1,013.8 | |
Interest and inflation linked assets | Significant unobservable inputs (Level 3) | Pension | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Defined benefit plan assets | 12.6 | 15.9 | |
Annuities and longevity swap | Fair Value, Inputs, Level 1, 2 and 3 | Pension | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Defined benefit plan assets | 461.8 | 708.9 | |
Annuities and longevity swap | Quoted prices in active markets (Level 1) | Pension | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Defined benefit plan assets | 0 | 0 | |
Annuities and longevity swap | Significant observable inputs (Level 2) | Pension | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Defined benefit plan assets | 0 | 0 | |
Annuities and longevity swap | Significant unobservable inputs (Level 3) | Pension | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Defined benefit plan assets | 461.8 | 708.9 | |
Repurchase agreements | Fair Value, Inputs, Level 1, 2 and 3 | Pension | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Defined benefit plan assets | (281.2) | (477.4) | |
Repurchase agreements | Quoted prices in active markets (Level 1) | Pension | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Defined benefit plan assets | (281.2) | (477.4) | |
Repurchase agreements | Significant observable inputs (Level 2) | Pension | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Defined benefit plan assets | 0 | 0 | |
Repurchase agreements | Significant unobservable inputs (Level 3) | Pension | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Defined benefit plan assets | 0 | 0 | |
Recoverable taxes | Fair Value, Inputs, Level 1, 2 and 3 | Pension | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Defined benefit plan assets | 0.1 | 0.2 | |
Recoverable taxes | Quoted prices in active markets (Level 1) | Pension | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Defined benefit plan assets | 0.1 | 0.2 | |
Recoverable taxes | Significant observable inputs (Level 2) | Pension | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Defined benefit plan assets | 0 | 0 | |
Recoverable taxes | Significant unobservable inputs (Level 3) | Pension | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Defined benefit plan assets | 0 | 0 | |
Private equity | Fair Value, Inputs, Level 1, 2 and 3 | Pension | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Defined benefit plan assets | 12.4 | 29.7 | |
Private equity | Quoted prices in active markets (Level 1) | Pension | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Defined benefit plan assets | 0 | 0 | |
Private equity | Significant observable inputs (Level 2) | Pension | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Defined benefit plan assets | 0 | 0 | |
Private equity | Significant unobservable inputs (Level 3) | Pension | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Defined benefit plan assets | 12.4 | 29.7 | |
Private equity | Fair Value Measured at Net Asset Value Per Share | Pension | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Defined benefit plan assets | 44.7 | 65.8 | |
Debt funds | Fair Value Measured at Net Asset Value Per Share | Pension | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Defined benefit plan assets | 1,355.7 | 2,034.2 | |
Equity funds | Fair Value Measured at Net Asset Value Per Share | Pension | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Defined benefit plan assets | 417.4 | 732.1 | |
Real estate funds | Fair Value Measured at Net Asset Value Per Share | Pension | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Defined benefit plan assets | 130.9 | 285 | |
Hedge funds | Fair Value Measured at Net Asset Value Per Share | Pension | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Defined benefit plan assets | 123.5 | $ 140.3 | |
Collateralized Securities | Fair Value, Inputs, Level 1, 2 and 3 | Pension | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Defined benefit plan assets | 0.2 | ||
Collateralized Securities | Quoted prices in active markets (Level 1) | Pension | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Defined benefit plan assets | 0 | ||
Collateralized Securities | Significant observable inputs (Level 2) | Pension | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Defined benefit plan assets | 0 | ||
Collateralized Securities | Significant unobservable inputs (Level 3) | Pension | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Defined benefit plan assets | $ 0.2 |
Employee Retirement Plans and_9
Employee Retirement Plans and Postretirement Benefits - Level 3 Rollforward (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Total gain or loss (realized/unrealized): | ||
Prior year fair value of assets | $ 5,667.5 | $ 5,958.4 |
Foreign exchange translation (loss)/gain | (333.2) | (20.5) |
Fair value of plan assets at end of year | 3,336.8 | 5,667.5 |
Significant unobservable inputs (Level 3) | ||
Total gain or loss (realized/unrealized): | ||
Prior year fair value of assets | 754.5 | 856.3 |
Realized gain (loss) | (1.9) | 0.9 |
Unrealized gain (loss) included in AOCI | (183.5) | (63.3) |
Purchases, issuances, settlements | (6.6) | (32.8) |
Foreign exchange translation (loss)/gain | (75.5) | (6.6) |
Fair value of plan assets at end of year | $ 487 | $ 754.5 |
Employee Retirement Plans an_10
Employee Retirement Plans and Postretirement Benefits - Expected Benefit Payments (Details) $ in Millions | Dec. 31, 2022 USD ($) |
Pension | |
Defined Benefit Plan Disclosure [Line Items] | |
2023 | $ 251.4 |
2024 | 242.2 |
2025 | 243.9 |
2026 | 244.4 |
2027 | 244.8 |
2028-2032 | 1,228.6 |
OPEB | |
Defined Benefit Plan Disclosure [Line Items] | |
2023 | 39.5 |
2024 | 39.1 |
2025 | 38.6 |
2026 | 38.3 |
2027 | 38 |
2028-2032 | $ 184.2 |
Income Tax - Summary of Income
Income Tax - Summary of Income Taxes (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Pre-tax income | |||
Domestic | $ 228.4 | $ 1,307.5 | $ 1,151.7 |
Foreign | (290.9) | (68.5) | (1,795.6) |
Income (loss) before income taxes | $ (62.5) | $ 1,239 | $ (643.9) |
Income Tax - Provision for Inco
Income Tax - Provision for Income Taxes (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Current | |||
Federal | $ 146.1 | $ 43.5 | $ 79 |
State | 22.3 | 7.1 | 5.2 |
Foreign | (17.2) | (1) | 111.4 |
Total current tax (benefit) expense | 151.2 | 49.6 | 195.6 |
Deferred | |||
Federal | 56.4 | 163.5 | 101.9 |
State | (26.2) | 70.4 | 19.5 |
Foreign | (57.4) | (53) | (15.2) |
Total deferred tax (benefit) expense | (27.2) | 180.9 | 106.2 |
Total income tax (benefit) expense | $ 124 | $ 230.5 | $ 301.8 |
Income Tax - Reconciliation of
Income Tax - Reconciliation of Statutory Federal Income Tax Rate (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | ||
Sep. 30, 2021 | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Effective Income Tax Rate Reconciliation, Percent [Abstract] | ||||
Statutory federal income tax rate | 21% | 21% | 21% | |
Statutory federal income tax rate | $ (13.1) | $ 260.2 | $ (135.2) | |
State income taxes, net of federal benefits | 6.10% | 4.70% | (1.70%) | |
State income taxes, net of federal benefits | $ (3.8) | $ 57.8 | $ 11 | |
Effect of foreign tax rates | 92.60% | (5.50%) | 3.50% | |
Effect of foreign tax rates | $ (57.9) | $ (68.3) | $ (22.3) | |
Effect of foreign tax law and rate changes | (0.80%) | 1.60% | (0.90%) | |
Effect of foreign tax law and rate changes | $ 0.5 | $ 19.6 | $ 6 | |
Effect of unrecognized tax benefits | (20.50%) | (6.20%) | (26.10%) | |
Effect of unrecognized tax benefits | $ (73) | $ 12.8 | $ (76.3) | $ 167.9 |
Change in valuation allowance | 1.10% | (0.10%) | 1.30% | |
Change in valuation allowance | $ (0.7) | $ (1.1) | $ (8.4) | |
Goodwill impairment | (287.00%) | (0.20%) | (41.40%) | |
Goodwill impairment | $ 179.3 | $ (2.9) | $ 266.8 | |
Other, net | (10.90%) | 3.30% | (2.60%) | |
Other, net | $ 6.9 | $ 41.5 | $ 16 | |
Effective tax rate / Tax (benefit) expense | (198.40%) | 18.60% | (46.90%) | |
Total income tax (benefit) expense | $ 124 | $ 230.5 | $ 301.8 |
Income Tax - Narrative (Details
Income Tax - Narrative (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |||||||
Dec. 31, 2022 | Dec. 31, 2021 | Sep. 30, 2021 | Jun. 30, 2021 | Dec. 31, 2020 | Jun. 30, 2020 | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Income Tax Contingency [Line Items] | |||||||||
Effect of unrecognized tax benefits | $ 73 | $ (12.8) | $ 76.3 | $ (167.9) | |||||
Additional discrete tax expense | $ 18 | ||||||||
Goodwill impairment | $ 845 | $ 0 | $ 1,484.3 | ||||||
Statutory federal income tax rate | 21% | 21% | 21% | ||||||
Undistributed earnings of foreign subsidiaries | $ 34 | $ 26.7 | $ 34 | $ 26.7 | |||||
Remaining unrecognized tax benefits | 5.4 | 1.4 | 5.4 | 1.4 | |||||
Unrecognized tax benefits, income tax penalties and interest | (5.9) | 1.4 | $ 8.5 | (5.9) | 1.4 | $ 8.5 | |||
Significant change in unrecognized tax benefit | 31.5 | 31.5 | |||||||
Reduction in unrecognized tax benefits | $ 250 | ||||||||
Decrease resulting from settlements with taxing authorities | $ 125 | 3.7 | $ 161.8 | $ 0.4 | |||||
Domestic | General business tax credit carryforward | |||||||||
Income Tax Contingency [Line Items] | |||||||||
Capital loss carryforwards, tax effect | 70.9 | 70.9 | |||||||
Operating loss carryforwards, not subject to expiration | 19.6 | 19.6 | |||||||
Foreign | General business tax credit carryforward | |||||||||
Income Tax Contingency [Line Items] | |||||||||
Capital loss carryforwards, tax effect | 196 | 196 | |||||||
Operating loss carryforwards, not subject to expiration | 38.3 | $ 38.3 | |||||||
Canada | |||||||||
Income Tax Contingency [Line Items] | |||||||||
Statutory federal income tax rate | 26% | ||||||||
Minimum | |||||||||
Income Tax Contingency [Line Items] | |||||||||
Estimate of possible loss | $ 135 | ||||||||
Statutes of limitations, term | 3 years | ||||||||
Minimum | Europe | |||||||||
Income Tax Contingency [Line Items] | |||||||||
Statutory federal income tax rate | 9% | ||||||||
Maximum | |||||||||
Income Tax Contingency [Line Items] | |||||||||
Statutes of limitations, term | 7 years | ||||||||
Maximum | Europe | |||||||||
Income Tax Contingency [Line Items] | |||||||||
Statutory federal income tax rate | 25.80% | ||||||||
EMEA and APAC | |||||||||
Income Tax Contingency [Line Items] | |||||||||
Goodwill impairment | $ 1,484.3 | ||||||||
Americas | |||||||||
Income Tax Contingency [Line Items] | |||||||||
Goodwill impairment | $ 845 | $ 845 |
Income Tax - Deferred Tax Asset
Income Tax - Deferred Tax Assets And Liabilities (Details) - USD ($) $ in Millions | Dec. 31, 2022 | Dec. 31, 2021 |
Deferred tax assets | ||
Compensation-related obligations | $ 44.7 | $ 54.8 |
Pension and postretirement benefits | 33.7 | 24.5 |
Tax credit carryforwards | 39 | 38.3 |
Tax loss carryforwards | 291.1 | 359 |
Accrued liabilities and other | 149 | 97.7 |
Valuation allowance | (57.2) | (60.7) |
Deferred tax assets | 500.3 | 513.6 |
Deferred tax liabilities | ||
Fixed assets | 358.9 | 422.4 |
Partnerships and investments | 33.2 | 29.7 |
Intangible assets | 2,563.2 | 2,539.7 |
Derivative instruments | 31.5 | 19.5 |
Deferred tax liabilities | 2,986.8 | 3,011.3 |
Net deferred tax liabilities | $ 2,486.5 | $ 2,497.7 |
Income Tax - Net Deferred Tax A
Income Tax - Net Deferred Tax Assets and Liabilities Components (Details) - USD ($) $ in Millions | Dec. 31, 2022 | Dec. 31, 2021 |
Income Tax Disclosure [Abstract] | ||
Domestic net non-current deferred tax liabilities | $ 1,927.7 | $ 1,825.9 |
Foreign net non-current deferred tax assets | 125.8 | 180.2 |
Foreign net non-current deferred tax liabilities | 684.6 | 852 |
Net non-current deferred tax liabilities | $ 2,486.5 | $ 2,497.7 |
Income Tax - Unrecognized Tax B
Income Tax - Unrecognized Tax Benefit (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Reconciliation of Unrecognized Tax Benefits, Excluding Amounts Pertaining to Examined Tax Returns [Roll Forward] | ||||
Balance at beginning of year | $ 28 | $ 235.7 | $ 72.4 | |
Additions for tax positions related to the current year | 15.9 | 28.6 | 22.8 | |
Additions for tax positions of prior years | 1.9 | 0 | 132.1 | |
Reductions for tax positions related to the current year | 0 | (24.1) | 0 | |
Reductions for tax positions of prior years | 0 | (48.9) | (1.6) | |
Settlements | $ (125) | (3.7) | (161.8) | (0.4) |
Release due to statute expirations | (1.3) | (3.4) | 0 | |
Foreign currency adjustment | (1.5) | 1.9 | 10.4 | |
Balance at end of year | $ 28 | $ 39.3 | $ 28 | $ 235.7 |
Commitment and Contingencies -
Commitment and Contingencies - Narrative (Details) - USD ($) $ in Millions | 12 Months Ended | ||||
Mar. 07, 2022 | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 1990 | |
Other Commitments [Line Items] | |||||
Outstanding letters of credit | $ 54 | ||||
Letter of credit outstanding, automatic renewal | 15 | ||||
Guarantor obligations, maximum undiscounted exposure | 33.3 | $ 38.1 | |||
Unrecorded unconditional purchase obligation, purchases | 400 | 400 | $ 500 | ||
Accrual for other disputes and environmental loss contingencies | $ 77 | $ 11.3 | |||
Master framework agreement | 10 years | ||||
EnvironmentalRemediationExpenseStatementOfIncomeOrComprehensive Income Extensible Enumeration Not Disclosed Flag | pretax charge | ||||
Stone Brewing Company v.s. MCBC | |||||
Other Commitments [Line Items] | |||||
Total estimate of indemnity liability | $ 56.6 | ||||
Stone Brewing Company v.s. MCBC | Pending Litigation | |||||
Other Commitments [Line Items] | |||||
Damages awarded | $ 56 | ||||
Purchased tax credits indemnity reserve | |||||
Other Commitments [Line Items] | |||||
Indemnity liability, noncurrent | 7.6 | ||||
Tax, civil and labor indemnity reserve | |||||
Other Commitments [Line Items] | |||||
Indemnity liability, noncurrent | $ 3.2 | ||||
Equity interest sold (as a percent) | 68% | ||||
Environmental matters, Lowry | |||||
Other Commitments [Line Items] | |||||
Environmental remediation expense, pretax charge | $ 30 | ||||
Environmental remediation threshold, assumed remediation cost | $ 120 | ||||
Site contingency, accrual, undiscounted amount | $ 7 | ||||
Risk free rate of return assumption (percent) | 3.88% | ||||
Maximum | Kaiser purchased tax credits indemnity reserve, category two | |||||
Other Commitments [Line Items] | |||||
Loss contingency, estimate of possible loss | $ 66.2 | ||||
Maximum | Tax, civil and labor indemnity reserve | |||||
Other Commitments [Line Items] | |||||
Loss contingency, estimate of possible loss | 68 | ||||
Minimum | Environmental matters, Lowry | |||||
Other Commitments [Line Items] | |||||
Loss contingency, estimate of possible loss | $ 5 |
Commitments and Contingencies -
Commitments and Contingencies - Schedule of Reserves for Indemnity Obligations (Details) - Total indemnity reserves - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Loss Contingency Accrual [Roll Forward] | |||
Balance at beginning of period | $ 10.2 | $ 11 | $ 14.2 |
Foreign exchange impacts | 0.6 | (0.8) | (3.2) |
Balance at end of period | $ 10.8 | $ 10.2 | $ 11 |
Commitments and Contingencies_2
Commitments and Contingencies - Schedule of Purchase Obligations (Details) $ in Millions | Dec. 31, 2022 USD ($) |
Supply and Distribution | |
2023 | $ 292.3 |
2024 | 196.4 |
2025 | 184.7 |
2026 | 144.9 |
2027 | 138.2 |
Thereafter | 216 |
Total | 1,172.5 |
Advertising and Promotions | |
2023 | 161.6 |
2024 | 158.7 |
2025 | 126.2 |
2026 | 94.7 |
2027 | 70.7 |
Thereafter | 177.3 |
Total | $ 789.2 |
Stockholders' Equity - Capital
Stockholders' Equity - Capital Stock (Details) - shares shares in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Common stock issued, Class A | |||
Capital Stock Activity [Roll Forward] | |||
Beginning balance (in shares) | 2,600 | 2,600 | 2,600 |
Ending balance (in shares) | 2,600 | 2,600 | 2,600 |
Common stock issued, Class B | |||
Capital Stock Activity [Roll Forward] | |||
Beginning balance (in shares) | 210,100 | 209,800 | 205,700 |
Shares issued under equity compensation plans (in shares) | 300 | 300 | 400 |
Shares exchanged for common stock (in shares) | 100 | 3,700 | |
Ending balance (in shares) | 210,500 | 210,100 | 209,800 |
Exchangeable shares issued, Class A | |||
Capital Stock Activity [Roll Forward] | |||
Beginning balance (in shares) | 2,700 | 2,700 | 2,700 |
Ending balance (in shares) | 2,700 | 2,700 | 2,700 |
Exchangeable shares issued, Class B | |||
Capital Stock Activity [Roll Forward] | |||
Beginning balance (in shares) | 11,100 | 11,100 | 14,800 |
Shares exchanged for common stock (in shares) | (100) | (3,700) | |
Ending balance (in shares) | 11,000 | 11,100 | 11,100 |
Stockholders' Equity - Narrativ
Stockholders' Equity - Narrative (Details) | 12 Months Ended |
Dec. 31, 2022 vote director | |
Class A exchangeable shares | |
Class of Stock [Line Items] | |
Common stock, votes per share (in votes) | 1 |
Common stock, conversion ratio | 1 |
Class B exchangeable shares | |
Class of Stock [Line Items] | |
Common stock, votes per share (in votes) | 1 |
Group voting rights, right to elect three directors | director | 3 |
Accumulated Other Comprehensi_3
Accumulated Other Comprehensive Income (Loss) - Rollforward (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward] | |||
Beginning balance | $ 13,664.1 | $ 12,621.3 | $ 13,673.1 |
Ending balance | 12,915.2 | 13,664.1 | 12,621.3 |
Foreign currency translation adjustments | |||
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward] | |||
Beginning balance | (558.7) | (539.5) | (652.5) |
Reclassification of AOCI, current period, before tax | 12.1 | 7.5 | |
Tax benefit (expense) | (25.7) | (17.6) | 30.5 |
Ending balance | (875.2) | (558.7) | (539.5) |
Accumulated foreign currency adjustment, excluding net investment hedging, attributable to parent | |||
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward] | |||
OCI before reclassifications before tax | (356.1) | (85.6) | 196 |
Accumulated foreign currency adjustment, net investment hedging, attributable to parent | |||
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward] | |||
OCI before reclassifications before tax | 53.2 | 76.5 | (113.5) |
AOCI foreign currency translation adjustments | |||
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward] | |||
OCI before reclassifications before tax | (354.9) | (86.8) | 194.4 |
Gain (loss) on derivative instruments | |||
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward] | |||
Beginning balance | (131) | (173.9) | (87.8) |
OCI before reclassifications before tax | 209.7 | 51.1 | (113.5) |
Reclassification of AOCI, current period, before tax | 12.9 | 7.5 | (0.5) |
Tax benefit (expense) | (59.4) | (15.7) | 27.9 |
Ending balance | 32.2 | (131) | (173.9) |
Pension and postretirement benefit adjustments | |||
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward] | |||
Beginning balance | (275.1) | (397.7) | (351) |
Reclassification of AOCI, current period, before tax | (2.1) | 7.1 | (7.6) |
Tax benefit (expense) | 19.1 | (41.9) | 15.4 |
Ending balance | (335.1) | (275.1) | (397.7) |
Foreign currency translation adjustments | |||
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward] | |||
OCI before reclassifications before tax | 1.2 | (1.2) | (1.6) |
Net change in pension and other postretirement benefit assets and liabilities | |||
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward] | |||
OCI before reclassifications before tax | (78.2) | 158.6 | (52.9) |
Equity method investments | |||
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward] | |||
Beginning balance | (41.2) | (56.7) | (70.9) |
OCI before reclassifications before tax | 18.7 | 20.8 | 19.4 |
Tax benefit (expense) | (4.9) | (5.3) | (5.2) |
Ending balance | (27.4) | (41.2) | (56.7) |
Accumulated other comprehensive income (loss) | |||
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward] | |||
Beginning balance | (1,006) | (1,167.8) | (1,162.2) |
Tax benefit (expense) | (70.9) | (80.5) | 68.6 |
Ending balance | $ (1,205.5) | $ (1,006) | $ (1,167.8) |
Accumulated Other Comprehensi_4
Accumulated Other Comprehensive Income (Loss) - AOCI Reclassifications (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | |||
Interest expense | $ (250.6) | $ (260.3) | $ (274.6) |
Cost of goods sold | 7,045.8 | 6,226.3 | 5,885.7 |
Other non-operating income (expense), net | (10.3) | (3.5) | 6 |
Income (loss) before income taxes | (62.5) | 1,239 | (643.9) |
India cumulative translation adjustment resulting from sale of disposal group | (38.6) | (44.5) | (255.9) |
Income tax benefit (expense) | (124) | (230.5) | (301.8) |
Net income (loss) | (186.5) | 1,008.5 | (945.7) |
Total other pension and postretirement (benefit) cost, net | (36.6) | (46.4) | (30.3) |
Reclassification out of AOCI | |||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | |||
Net income (loss) | (19.9) | (18.4) | 5.6 |
Accumulated net gain (loss) from designated or qualifying cash flow hedges | Reclassification out of AOCI | |||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | |||
Interest expense | (14.3) | (4.8) | (2.9) |
Cost of goods sold | 1.8 | (3.5) | 4.6 |
Other non-operating income (expense), net | (0.4) | 0.8 | (1.2) |
Income (loss) before income taxes | (12.9) | (7.5) | 0.5 |
Income tax benefit (expense) | 3.5 | 2 | (0.1) |
Net income (loss) | (9.4) | (5.5) | 0.4 |
Accumulated defined benefit plans adjustment | Reclassification out of AOCI | |||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | |||
Income (loss) before income taxes | 2.1 | (7.1) | 7.6 |
Income tax benefit (expense) | (0.5) | 1.7 | (2.4) |
Net income (loss) | 1.6 | (5.4) | 5.2 |
Prior service benefit (cost) | Reclassification out of AOCI | |||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | |||
Total other pension and postretirement (benefit) cost, net | 0.4 | 0.3 | 0.4 |
Net actuarial gain (loss) and settlement | Reclassification out of AOCI | |||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | |||
Total other pension and postretirement (benefit) cost, net | 1.7 | (7.4) | 7.2 |
Foreign currency translation adjustments | Reclassification out of AOCI | |||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | |||
India cumulative translation adjustment resulting from sale of disposal group | (12.1) | (7.5) | 0 |
Net income (loss) | $ (12.1) | $ (7.5) | $ 0 |
Share-Based Payments - Narrativ
Share-Based Payments - Narrative (Details) $ / shares in Units, shares in Millions, $ in Millions | 12 Months Ended | ||
Dec. 31, 2022 USD ($) plan $ / shares shares | Dec. 31, 2021 USD ($) $ / shares shares | Dec. 31, 2020 USD ($) $ / shares shares | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Cost not yet recognized | $ | $ 41.6 | ||
Cost not yet recognized, period of recognition | 1 year 9 months 18 days | ||
Exercise of option, tax benefit | $ | $ 2.9 | $ 2 | $ 3.1 |
RSUs | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Award vesting period | 3 years | ||
Awards granted (in shares) | shares | 0.5 | 0.6 | 0.5 |
Weighted average market value (in dollars per share) | $ 52.05 | $ 45.84 | $ 48.99 |
DSUs | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Weighted average market value (in dollars per share) | $ 51.80 | $ 49.33 | $ 37.53 |
Ratio of cash retainer payments received in stock | 0.5 | ||
PSUs | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Award vesting period | 3 years | ||
Awards granted (in shares) | shares | 0.3 | 0.4 | 0.3 |
Weighted average market value (in dollars per share) | $ 53.54 | $ 49.47 | |
Weighted-average fair value (in dollars per share) | $ 62.98 | 45.71 | $ 52.60 |
RSUs and DSUs | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Awards granted (in shares) | shares | 0.5 | ||
Weighted average market value (in dollars per share) | $ 49.07 | $ 49.23 | |
Weighted-average fair value (in dollars per share) | $ 52.03 | ||
Total intrinsic value, vested in period | $ | $ 17.2 | $ 12.7 | $ 14.8 |
Stock options | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Award vesting period | 3 years | ||
Awards granted (in shares) | shares | 0.3 | 0.3 | 0.4 |
Weighted-average fair value (in dollars per share) | $ 12.16 | $ 10.06 | $ 6.70 |
Terms of SBC award | 10 years | ||
Total intrinsic value of stock options exercised | $ | $ 0.7 | $ 0.9 | $ 0.8 |
Options, RSUs, DSUs and PSUs Awards | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Shares authorized and available for issuance (in shares) | shares | 4.9 | ||
Incentive Compensation Plan | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Number of share-based compensation plans (in plans) | plan | 1 |
Share-Based Payments - Compensa
Share-Based Payments - Compensation Expense (Details) - Options, RSUs, DSUs and PSUs Awards - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Pre-tax share-based compensation expense | $ 33.6 | $ 32.1 | $ 24.2 |
Tax benefit | (5.9) | (5.5) | (4.3) |
After-tax share-based compensation expense | $ 27.7 | $ 26.6 | $ 19.9 |
Share-Based Payments - Non-vest
Share-Based Payments - Non-vested (Details) - $ / shares shares in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
RSUs and DSUs | |||
Units | |||
Non-vested awards outstanding at the beginning of the period (in shares) | 1.3 | ||
Granted (in shares) | 0.5 | ||
Vested (in shares) | (0.4) | ||
Forfeited (in shares) | (0.1) | ||
Adjustment for performance results achieved (in shares) | 0 | ||
Non-vested awards outstanding at the end of the period (in shares) | 1.3 | 1.3 | |
Weighted-average grant date fair value per unit | |||
Nonvested awards, weighted-average grant date fair value per unit at beginning of period (in dollars per share) | $ 49.23 | ||
Granted (in dollars per share) | 52.03 | ||
Vested (in dollars per share) | 53.91 | ||
Forfeited (in dollars per share) | 49.14 | ||
Adjustment for performance results achieved (in dollars per share) | 0 | ||
Nonvested awards, weighted-average grant date fair value per unit at end of period (in dollars per share) | $ 49.07 | $ 49.23 | |
PSUs | |||
Units | |||
Non-vested awards outstanding at the beginning of the period (in shares) | 0.8 | ||
Granted (in shares) | 0.3 | 0.4 | 0.3 |
Vested (in shares) | 0 | ||
Forfeited (in shares) | 0 | ||
Adjustment for performance results achieved (in shares) | (0.2) | ||
Non-vested awards outstanding at the end of the period (in shares) | 0.9 | 0.8 | |
Weighted-average grant date fair value per unit | |||
Nonvested awards, weighted-average grant date fair value per unit at beginning of period (in dollars per share) | $ 49.47 | ||
Granted (in dollars per share) | 62.98 | $ 45.71 | $ 52.60 |
Vested (in dollars per share) | 0 | ||
Forfeited (in dollars per share) | 0 | ||
Adjustment for performance results achieved (in dollars per share) | 51.80 | ||
Nonvested awards, weighted-average grant date fair value per unit at end of period (in dollars per share) | $ 53.54 | $ 49.47 |
Share-Based Payments - Stock Op
Share-Based Payments - Stock Options (Details) - Stock options - USD ($) $ / shares in Units, shares in Millions, $ in Millions | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Awards | ||
Outstanding at the beginning of the period (in shares) | 1.9 | |
Granted (in shares) | 0.3 | |
Exercised (in shares) | (0.1) | |
Expired (in shares) | (0.6) | |
Outstanding at the end of the period (in shares) | 1.5 | 1.9 |
Expected to vest at end of period (in shares) | 0.6 | |
Exercisable at end of period (in shares) | 0.9 | |
Weighted- average exercise price per unit | ||
Weighted-average exercise price of shares outstanding, beginning of the period (in dollars per share) | $ 63.15 | |
Weighted-average exercise price of shares granted (in dollars per share) | 52.18 | |
Weighted-average exercise price of shares exercised (in dollars per share) | 44.12 | |
Weighted-average exercise price of shares expired (in dollars per share) | 75.38 | |
Weighted-average exercise price of shares outstanding, end of the period (in dollars per share) | 57.14 | $ 63.15 |
Weighted-average exercise price of shares expected to vest (in dollars per share) | 49.49 | |
Weighted-average exercise price of shares exercisable (in dollars per share) | $ 62.43 | |
Weighted- average remaining contractual life (years) | ||
Weighted-average remaining contractual life at beginning of period | 6 years 7 months 6 days | 4 years 9 months 18 days |
Weighted-average remaining contractual life at end of period | 6 years 7 months 6 days | 4 years 9 months 18 days |
Weighted-average remaining contractual life, expected to vest | 8 years 1 month 6 days | |
Weighted-average remaining contractual life, exercisable | 5 years 6 months | |
Aggregate intrinsic value | ||
Aggregate intrinsic value of shares outstanding, beginning | $ 0.6 | |
Aggregate intrinsic value of shares outstanding, ending | 2.1 | $ 0.6 |
Aggregate intrinsic value of shares expected to vest | 1.4 | |
Aggregate intrinsic value of shares exercisable | $ 0.7 |
Share-Based Payments - Weighted
Share-Based Payments - Weighted-Average Assumptions (Details) - $ / shares | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Stock options | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Risk-free interest rate | 1.88% | 0.79% | 0.91% |
Dividend yield | 2.86% | 3.11% | 4.40% |
Weighted-average volatility | 31.65% | 33.74% | 25.40% |
Expected term (years) | 5 years 8 months 12 days | 5 years 7 months 6 days | 5 years 6 months |
Weighted-average fair value (in dollars per share) | $ 12.16 | $ 10.06 | $ 6.70 |
Stock options | Minimum | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Volatility range | 30.91% | 30.84% | 25.09% |
Stock options | Maximum | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Volatility range | 33.85% | 42.44% | 26.31% |
PSUs | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Risk-free interest rate | 1.58% | 0.24% | 0.84% |
Weighted-average volatility | 35.93% | 35.46% | 26.02% |
Expected term (years) | 2 years 9 months 18 days | 2 years 9 months 18 days | 2 years 9 months 18 days |
Weighted-average fair value (in dollars per share) | $ 62.98 | $ 45.71 | $ 52.60 |
PSUs | Minimum | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Volatility range | 22.65% | 23% | 15.21% |
PSUs | Maximum | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Volatility range | 45.30% | 44.71% | 45.75% |
Other Operating Income (Expen_3
Other Operating Income (Expense), net - Schedule of Other Operating Income (Expense) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Unusual or Infrequent Item [Line Items] | |||
India cumulative translation adjustment resulting from sale of disposal group | $ (38.6) | $ (44.5) | $ (255.9) |
Restructuring | |||
Unusual or Infrequent Item [Line Items] | |||
India cumulative translation adjustment resulting from sale of disposal group | (6) | (11.7) | (67.6) |
Asset Abandonment and Other Restructuring Costs | |||
Unusual or Infrequent Item [Line Items] | |||
India cumulative translation adjustment resulting from sale of disposal group | (3.1) | (25.9) | (119.5) |
Intangible and tangible asset impairments, excluding goodwill | |||
Unusual or Infrequent Item [Line Items] | |||
India cumulative translation adjustment resulting from sale of disposal group | (36.3) | (13.5) | (71.5) |
Gains and (Losses) On Other disposals | |||
Unusual or Infrequent Item [Line Items] | |||
India cumulative translation adjustment resulting from sale of disposal group | $ (6.8) | $ (6.6) | $ (2.7) |
Other Operating Income (Expen_4
Other Operating Income (Expense), net - Narrative (Details) $ in Millions | 1 Months Ended | 3 Months Ended | 12 Months Ended | |||||
Jan. 31, 2020 USD ($) | Sep. 30, 2022 USD ($) | Mar. 31, 2022 USD ($) | Sep. 30, 2021 USD ($) | Dec. 31, 2020 USD ($) | Dec. 31, 2022 USD ($) employee | Dec. 31, 2021 USD ($) | Dec. 31, 2020 USD ($) | |
Unusual or Infrequent Item [Line Items] | ||||||||
Other cost and expense | $ 38.6 | $ 44.5 | $ 255.9 | |||||
Accelerated depreciation | $ 0 | 15.4 | 112.3 | |||||
Goodwill and intangible asset impairment | 30 | |||||||
Maximum | ||||||||
Unusual or Infrequent Item [Line Items] | ||||||||
Number of positions eliminated | employee | 600 | |||||||
Employee relocation | ||||||||
Unusual or Infrequent Item [Line Items] | ||||||||
Restructuring costs | 3.4 | 11 | ||||||
EMEA&APAC | ||||||||
Unusual or Infrequent Item [Line Items] | ||||||||
Goodwill and intangible asset impairment | 13.5 | |||||||
Restructuring | ||||||||
Unusual or Infrequent Item [Line Items] | ||||||||
Other cost and expense | $ 6 | 11.7 | 67.6 | |||||
Impairment losses | ||||||||
Unusual or Infrequent Item [Line Items] | ||||||||
Other cost and expense | 36.3 | 13.5 | 71.5 | |||||
Impairment losses | Americas | ||||||||
Unusual or Infrequent Item [Line Items] | ||||||||
Special items, noncontrolling interest | $ 12.1 | |||||||
Craft brand definite-lived intangible asset impairment losses | Americas | ||||||||
Unusual or Infrequent Item [Line Items] | ||||||||
Other cost and expense | 17 | |||||||
Definite-lived intangible asset impairment losses | Americas | ||||||||
Unusual or Infrequent Item [Line Items] | ||||||||
Other cost and expense | 22.6 | |||||||
Closure of Denver office | Corporate | ||||||||
Unusual or Infrequent Item [Line Items] | ||||||||
Other cost and expense | 7.6 | |||||||
Revitalization restructuring costs | ||||||||
Unusual or Infrequent Item [Line Items] | ||||||||
Restructuring charges | 4 | 35.6 | ||||||
Restructuring cost incurred to date | $ 81 | |||||||
Alton Brewery | ||||||||
Unusual or Infrequent Item [Line Items] | ||||||||
Loss (gain) on disposal | $ 4.9 | $ 11.4 | ||||||
Disposal group within India business | ||||||||
Unusual or Infrequent Item [Line Items] | ||||||||
Loss (gain) on disposal | $ (2.7) | |||||||
Held for sale | Irwindale Brewery | ||||||||
Unusual or Infrequent Item [Line Items] | ||||||||
Purchase price | $ 150 | |||||||
Other cost and expense | 117.7 | |||||||
Gain (loss) on sale | $ 2.1 | |||||||
Accelerated depreciation | 96 | |||||||
Held for sale | Irwindale Brewery | Restructuring | ||||||||
Unusual or Infrequent Item [Line Items] | ||||||||
Restructuring charges | $ 16.5 |
Other Operating Income (Expen_5
Other Operating Income (Expense), net - Restructuring Accruals (Details) - Employee Severance - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Restructuring Reserve [Roll Forward] | |||
Restructuring accruals, beginning balance | $ 12.4 | $ 26.5 | $ 47.1 |
Charges incurred and changes in estimates | 5.5 | 11.7 | 67.6 |
Payments made | (7.8) | (25.7) | (88.4) |
Foreign currency and other adjustments | (0.1) | (0.1) | 0.2 |
Restructuring accruals, ending balance | 10 | 12.4 | 26.5 |
Americas | |||
Restructuring Reserve [Roll Forward] | |||
Restructuring accruals, beginning balance | 10.9 | 24.5 | 42.6 |
Charges incurred and changes in estimates | (0.5) | 10.1 | 59.1 |
Payments made | (6.5) | (23.7) | (77.3) |
Foreign currency and other adjustments | (0.3) | 0 | 0.1 |
Restructuring accruals, ending balance | 3.6 | 10.9 | 24.5 |
EMEA&APAC | |||
Restructuring Reserve [Roll Forward] | |||
Restructuring accruals, beginning balance | 1.5 | 2 | 4.5 |
Charges incurred and changes in estimates | 6 | 1.6 | 8.5 |
Payments made | (1.3) | (2) | (11.1) |
Foreign currency and other adjustments | 0.2 | (0.1) | 0.1 |
Restructuring accruals, ending balance | $ 6.4 | $ 1.5 | $ 2 |
Segment Reporting - Income (Los
Segment Reporting - Income (Loss) Before Income Taxes by Segment (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Segment Reporting | |||
Net sales | $ 10,701 | $ 10,279.7 | $ 9,654 |
Equity income (loss) | 4.7 | 0 | 0 |
Interest expense | (250.6) | (260.3) | (274.6) |
Interest income | 4.3 | 2 | 3.3 |
Income (loss) before income taxes | (62.5) | 1,239 | (643.9) |
Income tax benefit (expense) | (124) | (230.5) | (301.8) |
Net income (loss) | (186.5) | 1,008.5 | (945.7) |
Net (income) loss attributable to noncontrolling interests | 11.2 | (2.8) | (3.3) |
Net income (loss) attributable to Molson Coors Beverage Company | (175.3) | 1,005.7 | (949) |
Unallocated | |||
Segment Reporting | |||
Net sales | 0 | 0 | 0 |
Equity income (loss) | 0 | ||
Interest expense | (244) | (253.1) | (266.3) |
Interest income | 3.9 | 1.8 | 2.8 |
Income (loss) before income taxes | (436.4) | 29.6 | (120.7) |
Inter-segment net sales eliminations | |||
Segment Reporting | |||
Net sales | (15.7) | (7.6) | (14.9) |
Equity income (loss) | 0 | ||
Interest expense | 0 | 0 | 0 |
Interest income | 0 | 0 | 0 |
Income (loss) before income taxes | 0 | 0 | 0 |
Americas | Operating segments | |||
Segment Reporting | |||
Net sales | 8,711.5 | 8,485 | 8,237 |
Equity income (loss) | 4.7 | ||
Interest expense | (1.5) | (1.4) | (2.6) |
Interest income | 0.2 | 0 | 0.2 |
Income (loss) before income taxes | 312.9 | 1,176.5 | 1,080.5 |
EMEA&APAC | Operating segments | |||
Segment Reporting | |||
Net sales | 2,005.2 | 1,802.3 | 1,431.9 |
Equity income (loss) | 0 | ||
Interest expense | (5.1) | (5.8) | (5.7) |
Interest income | 0.2 | 0.2 | 0.3 |
Income (loss) before income taxes | $ 61 | $ 32.9 | $ (1,603.7) |
Segment Reporting - Total Asset
Segment Reporting - Total Assets and Cash Flow Information (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Segment Reporting | |||
Assets | $ 25,868.3 | $ 27,619 | |
Depreciation and amortization | 684.8 | 786.1 | $ 922 |
Capital expenditures | 661.4 | 522.6 | 574.8 |
Americas | |||
Segment Reporting | |||
Assets | 22,242.7 | 23,653.5 | |
Depreciation and amortization | 526.9 | 601.4 | 743 |
Capital expenditures | 483.5 | 405 | 461.4 |
EMEA&APAC | |||
Segment Reporting | |||
Assets | 3,625.6 | 3,965.5 | |
Depreciation and amortization | 157.9 | 184.7 | 179 |
Capital expenditures | $ 177.9 | $ 117.6 | $ 113.4 |
Segment Reporting - Net Sales (
Segment Reporting - Net Sales (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Segment Reporting | |||
Net sales | $ 10,701 | $ 10,279.7 | $ 9,654 |
Unaffiliated customers | |||
Segment Reporting | |||
Net sales | 10,701 | 10,279.7 | 9,654 |
United States and its territories | Unaffiliated customers | |||
Segment Reporting | |||
Net sales | 7,405.6 | 7,168.7 | 7,016.1 |
Canada | Unaffiliated customers | |||
Segment Reporting | |||
Net sales | 1,165.3 | 1,188.4 | 1,111.6 |
United Kingdom | Unaffiliated customers | |||
Segment Reporting | |||
Net sales | 1,166.3 | 959.1 | 663.7 |
Other foreign countries | Unaffiliated customers | |||
Segment Reporting | |||
Net sales | $ 963.8 | $ 963.5 | $ 862.6 |
Segment Reporting - Properties
Segment Reporting - Properties (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Segment Reporting | ||
Properties, net | $ 4,355.5 | $ 4,311.5 |
Maximum percentage of properties accounted for by a single country | 10% | |
United States and its territories | ||
Segment Reporting | ||
Properties, net | $ 2,444.6 | 2,294.1 |
Canada | ||
Segment Reporting | ||
Properties, net | 1,050.6 | 1,114.6 |
United Kingdom | ||
Segment Reporting | ||
Properties, net | 365.4 | 383.2 |
Other foreign countries | ||
Segment Reporting | ||
Properties, net | $ 494.9 | $ 519.6 |
SCHEDULE II (Details)
SCHEDULE II (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Allowance for obsolete supplies and inventory | |||
SEC Schedule, 12-09, Movement in Valuation Allowances and Reserves [Roll Forward] | |||
Balance at beginning of year | $ 44.1 | $ 38.4 | $ 22.2 |
Additions charged to costs and expenses | 169.9 | 109.9 | 70.6 |
Deductions | (151.6) | (103.8) | (54.3) |
Foreign exchange impact | (1.5) | (0.4) | (0.1) |
Balance at end of year | 60.9 | 44.1 | 38.4 |
Deferred tax valuation account | |||
SEC Schedule, 12-09, Movement in Valuation Allowances and Reserves [Roll Forward] | |||
Balance at beginning of year | 60.7 | 62.2 | 73.8 |
Additions charged to costs and expenses | 20.6 | 14.8 | 31.8 |
Deductions | (23) | (16.2) | (43.4) |
Foreign exchange impact | (1.1) | (0.1) | 0 |
Balance at end of year | $ 57.2 | $ 60.7 | $ 62.2 |