Cover Page
Cover Page - USD ($) $ in Billions | 12 Months Ended | ||
Dec. 31, 2023 | Feb. 13, 2024 | Jun. 30, 2023 | |
Document Information [Line Items] | |||
Document Type | 10-K | ||
Document Annual Report | true | ||
Document Period End Date | Dec. 31, 2023 | ||
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, BC555 | ||
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 | ||
Document Financial Statement Error Correction [Flag] | false | ||
Entity Shell Company | false | ||
Entity Public Float | $ 12 | ||
Documents Incorporated by Reference | Portions of the registrant's definitive proxy statement for the registrant's 2024 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, 2023, are incorporated by reference under Part III of this Annual Report on Form 10-K. | ||
Entity Central Index Key | 0000024545 | ||
Document Fiscal Year Focus | 2023 | ||
Document Fiscal Period Focus | FY | ||
Amendment Flag | false | ||
Common Class A | |||
Document Information [Line Items] | |||
Entity Common Stock, shares outstanding | 2,563,034 | ||
Common Class B | |||
Document Information [Line Items] | |||
Entity Common Stock, shares outstanding | 198,001,985 | ||
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, $0.01 par value | ||
Trading Symbol | TAP | ||
Security Exchange Name | NYSE | ||
NEW YORK STOCK EXCHANGE, INC. | Senior Notes Due 2024 | |||
Document Information [Line Items] | |||
Title of 12(b) Security | 1.25% Senior Notes due 2024 | ||
Trading Symbol | TAP 24 | ||
Security Exchange Name | NYSE |
Audit Information
Audit Information | 12 Months Ended |
Dec. 31, 2023 | |
Auditor Information [Abstract] | |
Auditor Firm ID | 238 |
Auditor Name | PricewaterhouseCoopers LLP |
Auditor Location | Milwaukee, Wisconsin |
CONSOLIDATED STATEMENTS OF OPER
CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) shares in Millions, $ in Millions | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Income Statement [Abstract] | |||
Sales | $ 13,884.6 | $ 12,807.5 | $ 12,449.9 |
Excise taxes | (2,182.5) | (2,106.5) | (2,170.2) |
Net sales | 11,702.1 | 10,701 | 10,279.7 |
Cost of goods sold | (7,333.3) | (7,045.8) | (6,226.3) |
Gross profit | 4,368.8 | 3,655.2 | 4,053.4 |
Marketing, general and administrative expenses | (2,779.9) | (2,618.8) | (2,554.5) |
Goodwill impairment | 0 | (845) | 0 |
Other operating income (expense), net | (162.7) | (38.6) | (44.5) |
Equity income (loss) | 12 | 4.7 | 0 |
Operating income (loss) | 1,438.2 | 157.5 | 1,454.4 |
Interest expense | (234) | (250.6) | (260.3) |
Interest income | 25.4 | 4.3 | 2 |
Other pension and postretirement benefit (cost), net | 10.2 | 36.6 | 46.4 |
Other non-operating income (expense), net | 12.7 | (10.3) | (3.5) |
Total non-operating income (expense), net | (185.7) | (220) | (215.4) |
Income (loss) before income taxes | 1,252.5 | (62.5) | 1,239 |
Income tax benefit (expense) | (296.1) | (124) | (230.5) |
Net income (loss) | 956.4 | (186.5) | 1,008.5 |
Net (income) loss attributable to noncontrolling interests | (7.5) | 11.2 | (2.8) |
Net income (loss) attributable to Molson Coors Beverage Company | $ 948.9 | $ (175.3) | $ 1,005.7 |
Net income (loss) attributable to Molson Coors Beverage Company per share | |||
Basic (in dollars per share) | $ 4.39 | $ (0.81) | $ 4.63 |
Diluted (in dollars per share) | $ 4.37 | $ (0.81) | $ 4.62 |
Weighted-average shares outstanding | |||
Basic (in shares) | 216 | 216.9 | 217.1 |
Dilutive effect of share-based awards (in shares) | 1.3 | 0 | 0.5 |
Diluted (in shares) | 217.3 | 216.9 | 217.6 |
CONSOLIDATED STATEMENTS OF COMP
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Comprehensive Income (Loss), Net of Tax, Attributable to Parent [Abstract] | |||
Net income (loss) including noncontrolling interests | $ 956.4 | $ (186.5) | $ 1,008.5 |
Other comprehensive income (loss), net of tax | |||
Foreign currency translation adjustments | 98.7 | (329.8) | (28.4) |
Cumulative translation adjustment reclassified from other comprehensive income (loss) | (0.6) | 12.1 | 7.5 |
Unrealized gain (loss) recognized on derivative instruments | (2.5) | 153.8 | 37.4 |
Derivative instrument activity reclassified from other comprehensive income (loss) | 0.9 | 9.4 | 5.5 |
Net change in pension and other postretirement benefit assets and liabilities recognized in other comprehensive income (loss) | (6.4) | (59.6) | 118.4 |
Pension and other postretirement activity reclassified from other comprehensive income (loss) | (11.2) | (1.6) | 5.4 |
Ownership share of unconsolidated subsidiaries' other comprehensive income (loss) | 11.2 | 13.8 | 15.5 |
Total other comprehensive income (loss), net of tax | 90.1 | (201.9) | 161.3 |
Comprehensive income (loss) | 1,046.5 | (388.4) | 1,169.8 |
Comprehensive (income) loss attributable to noncontrolling interests | (8.4) | 13.6 | (2.3) |
Comprehensive income (loss) attributable to Molson Coors Beverage Company | $ 1,038.1 | $ (374.8) | $ 1,167.5 |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS - USD ($) shares in Millions, $ in Millions | Dec. 31, 2023 | Dec. 31, 2022 |
Current assets | ||
Cash and cash equivalents | $ 868.9 | $ 600 |
Trade receivables, net | 757.8 | 739.8 |
Other receivables, net | 121.6 | 126.4 |
Inventories, net | 802.3 | 792.9 |
Other current assets, net | 297.9 | 378.9 |
Total current assets | 2,848.5 | 2,638 |
Property, plant and equipment, net | 4,444.5 | 4,222.8 |
Goodwill | 5,325.3 | 5,291.9 |
Other intangibles, net | 12,614.6 | 12,800.1 |
Other assets | 1,142.2 | 915.5 |
Total assets | 26,375.1 | 25,868.3 |
Current liabilities | ||
Accounts payable and other current liabilities | 3,180.8 | 2,978.3 |
Current portion of long-term debt and short-term borrowings | 911.8 | 397.1 |
Total current liabilities | 4,092.6 | 3,375.4 |
Long-term debt | 5,312.1 | 6,165.2 |
Pension and postretirement benefits | 465.8 | 473.3 |
Deferred tax liabilities | 2,697.2 | 2,646.4 |
Other liabilities | 372.3 | 292.8 |
Total liabilities | 12,940 | 12,953.1 |
Commitments and contingencies (Note 13) | ||
Redeemable noncontrolling interest | 27.9 | 0 |
Capital stock | ||
Preferred stock, $0.01 par value (authorized: 25.0 shares; none issued) | 0 | 0 |
Paid-in capital | 7,108.4 | 7,006.4 |
Retained earnings | 7,484.3 | 6,894.1 |
Accumulated other comprehensive income (loss) | (1,116.3) | (1,205.5) |
Class B common stock held in treasury at cost (13.9 shares and 10.5 shares, respectively) | (735.6) | (522.9) |
Total Molson Coors Beverage Company stockholders' equity | 13,196 | 12,689.7 |
Noncontrolling interests | 211.2 | 225.5 |
Total equity | 13,407.2 | 12,915.2 |
Total liabilities and equity | 26,375.1 | 25,868.3 |
Common Class A | ||
Capital stock | ||
Common stock issued | $ 0 | $ 0 |
Common stock, shares issued (in shares) | 2.6 | 2.6 |
Common Class B | ||
Capital stock | ||
Common stock issued | $ 2.1 | $ 2.1 |
Common stock, shares issued (in shares) | 212.5 | 210.5 |
Class A exchangeable shares | ||
Capital stock | ||
Exchangeable shares issued | $ 100.8 | $ 102.2 |
Class B exchangeable shares | ||
Capital stock | ||
Exchangeable shares issued | $ 352.3 | $ 413.3 |
CONSOLIDATED BALANCE SHEETS (PA
CONSOLIDATED BALANCE SHEETS (PARENTHETICAL) - $ / shares | Dec. 31, 2023 | Dec. 31, 2022 |
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) | 13,900,000 | 10,500,000 |
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 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) | 212,500,000 | 210,500,000 |
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) | 9,400,000 | 9,400,000 |
Exchangeable stock, shares outstanding (in shares) | 11,000,000 | 11,000,000 |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Cash flows from operating activities | |||
Net income (loss) including noncontrolling interests | $ 956.4 | $ (186.5) | $ 1,008.5 |
Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities | |||
Depreciation and amortization | 682.8 | 684.8 | 786.1 |
Amortization of debt issuance costs and discounts | 5.7 | 7.7 | 6.7 |
Share-based compensation | 44.9 | 33.6 | 32.1 |
Goodwill impairment | 0 | 845 | 0 |
(Gain) loss on sale or impairment of property, plant, equipment and other assets, net | 181.9 | 18.6 | 9.1 |
Unrealized (gain) loss on foreign currency fluctuations and derivative instruments, net | 88.3 | 236.4 | (233.8) |
Equity income (loss) | (12) | (4.7) | 0 |
Income tax (benefit) expense | 296.1 | 124 | 230.5 |
Income tax (paid) received | (244.8) | (76.6) | (227) |
Interest expense, excluding amortization of debt issuance costs and discounts | 228.3 | 242.9 | 253.6 |
Interest paid | (229) | (240) | (256.2) |
Change in current assets and liabilities (net of impact of business combinations) and other | |||
Receivables | (0.7) | (108.5) | (137.6) |
Inventories | 21.7 | (64.6) | (143.9) |
Payables and other current liabilities | 50.2 | (16.1) | 285.5 |
Other assets and other liabilities | 9.2 | 6 | (40.1) |
Net cash provided by (used in) operating activities | 2,079 | 1,502 | 1,573.5 |
Cash flows from investing activities | |||
Additions to property, plant and equipment | (671.5) | (661.4) | (522.6) |
Proceeds from sales of property, plant, equipment and other assets | 10.9 | 32.2 | 26 |
Acquisition of business, net of cash acquired | (63.7) | 0 | 0 |
Other | (117.4) | 4.1 | (13.3) |
Net cash provided by (used in) investing activities | (841.7) | (625.1) | (509.9) |
Cash flows from financing activities | |||
Exercise of stock options under equity compensation plans | 7.9 | 3.1 | 4.6 |
Dividends paid | (354.7) | (329.3) | (147.8) |
Payments for purchases of treasury stock | (205.8) | (51.5) | 0 |
Payments on debt and borrowings | (404.8) | (509.1) | (1,006.6) |
Proceeds on debt and borrowings | 7 | 7 | 0 |
Net proceeds from (payments on) revolving credit facilities and commercial paper | 0 | (3.7) | 1.4 |
Other | (31) | (6) | (23.8) |
Net cash provided by (used in) financing activities | (981.4) | (889.5) | (1,172.2) |
Effect of foreign exchange rate changes on cash and cash equivalents | 13 | (24.8) | (24.1) |
Net increase (decrease) in cash and cash equivalents | 268.9 | (37.4) | (132.7) |
Balance at beginning of year | 600 | 637.4 | 770.1 |
Balance at end of year | $ 868.9 | $ 600 | $ 637.4 |
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 | Noncontrolling interests | |
Beginning 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 | [1] |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||||
Exchange of shares | 0 | (0.1) | 0.1 | ||||||||
Shares issued under equity compensation plan | 0.6 | 0.6 | |||||||||
Amortization of share-based compensation | 32.1 | 32.1 | |||||||||
Purchase of noncontrolling interest | (0.2) | 0.3 | (0.5) | [1] | |||||||
Net income (loss) including noncontrolling interests | 1,008.5 | 1,005.7 | 2.8 | [1] | |||||||
Other comprehensive income (loss), net of tax | 161.3 | 161.8 | (0.5) | [1] | |||||||
Contributions from noncontrolling interests | 3.2 | 3.2 | [1] | ||||||||
Distributions and dividends to noncontrolling interests | (14.3) | (14.3) | [1] | ||||||||
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 | [1] |
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 | |||||||||
Purchase of noncontrolling interest | (1.4) | 0.3 | (1.7) | [1] | |||||||
Net income (loss) including noncontrolling interests | (186.5) | (175.3) | (11.2) | [1] | |||||||
Other comprehensive income (loss), net of tax | (201.9) | (199.5) | (2.4) | [1] | |||||||
Share repurchase program | (51.5) | (51.5) | |||||||||
Contributions from noncontrolling interests | 8.1 | 8.1 | [1] | ||||||||
Distributions and dividends to noncontrolling interests | (14.3) | (14.3) | [1] | ||||||||
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 | [1] |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||||
Exchange of shares | 0 | (1.4) | (61) | 62.4 | |||||||
Shares issued under equity compensation plan | 0.2 | 0.2 | |||||||||
Amortization of share-based compensation | 44.9 | 44.9 | |||||||||
Purchase of noncontrolling interest | (8.5) | (5.5) | (3) | [1] | |||||||
Net income (loss) including noncontrolling interests | 957.1 | 948.9 | 8.2 | [1] | |||||||
Deconsolidation of VIE | (8.8) | (8.8) | |||||||||
Other comprehensive income (loss), net of tax | 90.1 | 89.2 | 0.9 | [1] | |||||||
Share repurchase program | (212.7) | (212.7) | |||||||||
Contributions from noncontrolling interests | 2.4 | 2.4 | [1] | ||||||||
Distributions and dividends to noncontrolling interests | (14) | (14) | [1] | ||||||||
Dividends declared | (358.7) | (358.7) | |||||||||
Ending balance at Dec. 31, 2023 | $ 13,407.2 | $ 0 | $ 2.1 | $ 100.8 | $ 352.3 | $ 7,108.4 | $ 7,484.3 | $ (1,116.3) | $ (735.6) | $ 211.2 | [1] |
[1]All activity included in the noncontrolling interests column of the consolidated statements of stockholders' equity and noncontrolling interests excludes activity from our redeemable noncontrolling interests. |
Basis of Presentation and Summa
Basis of Presentation and Summary of Significant Accounting Policies | 12 Months Ended |
Dec. 31, 2023 | |
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 2023, 2022 and 2021 refers to the twelve months ended December 31, 2023, December 31, 2022 and December 31, 2021, respectively. Our primary operating currencies, other than USD, include the CAD, the GBP and our Central European operating currencies such as the EUR, CZK, RON 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." 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. Acquisition On August 7, 2023, we acquired a 75% equity interest in Blue Run, a U.S. based high end whiskey business, for a purchase price of $77 million, which included cash paid of $64 million. The acquisition is aligned with our strategy to expand beyond the beer aisle and enhance our presence in the spirits category. The acquisition was accounted for as a business combination, with $88 million allocated to a definite-lived brand intangible asset to be amortized over a 15-year period and the remainder primarily allocated to other working capital balances and goodwill for the amount in excess of the net identifiable assets acquired. A noncontrolling interest was recognized at fair value based on a Monte Carlo simulation model and is recorded as redeemable noncontrolling interest in the consolidated balance sheets based on the contractual terms of the agreement. Pro forma results of operations have not been presented as the impact is not material to our results of operation or financial position. Supplier Financing We are the buyer under a supplier finance program with Citibank N.A. ("Citi" or "the bank"), with $147.5 million and $135.2 million confirmed as valid and outstanding for the years ended December 31, 2023 and December 31, 2022, respectively. We recognize these unpaid balances in accounts payable and other current liabilities 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 non income 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 sheets 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. 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 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 factors including 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, 2023, 2022 and 2021, 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. During the years ended December 31, 2023, 2022 and 2021 no arrangements were individually material nor material in the aggregate. 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, 2023 or December 31, 2022. Separately, trade receivables, net 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, net. 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, including aluminum, glass bottles, aluminum cans, cardboard and paperboard are also included in our cost of goods sold. Additionally, our cost of goods sold contains manufacturing expenses including 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 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. The creative portion of our advertising activities is expensed as incurred. Production costs of advertising and promotional materials are recorded as a prepaid asset and expensed when the advertising is first run. Included in MG&A is total marketing and advertising expenses which were approximately $1.1 billion, $1.0 billion and $1.1 billion for the years ended December 31, 2023, 2022 and 2021, 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 compensation, benefits 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 compensation, benefits and other overheads, including travel and entertainment expenses. This line item additionally includes amortization costs associated with definite-lived 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), net 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 certain 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 certain equity securities and other investments 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 and realized and unrealized changes in fair value on instruments not designated in hedging relationships 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 OCI, 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 income tax benefit (expense) 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 the consolidated statement of operations 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, 2023, December 31, 2022 and December 31, 2021 were 0.6 million, 3.1 million and 1.8 million shares, respectively. 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. Dividends On November 9, 2023, the Board declared a cash dividend of $0.41 per share, paid on December 15, 2023, to shareholders of Class A and Class B common stock of record on December 1, 2023. Shareholders of exchangeable shares received the CAD equivalent of dividends declared on Class A and Class B common stock, equal to CAD 0.56 per share. During the year ended December 31, 2023, dividends declared to eligible shareholders totaled $1.64 per share, with the CAD equivalent totaling CAD 2.19 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, the Board 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. Non-Cash Activity Non-cash investing activities includes movements in our guarantee of indebtedness of certain equity method investments.. See Note 3, "Investments" for further discussion. We also had other non-cash activities related to capital expenditures incurred but not yet paid of $254.9 million, $234.3 million and $206.6 million during the years ended December 31, 2023, 2022 and 2021, 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. During the first quarter of 2022, we recorded a non-cash transaction related to the establishment of an accrued liability of $56.0 million as the best estimate of the probable loss in the Keystone litigation case based on the jury verdict. During the years ended December 31, 2023 and 2022, we recorded non-cash transactions of $1.9 million and $0.6 million, respectively, in accrued interest associated with this accrued liability. 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 for the years ended December 31, 2023, 2022 and 2021. Trade Receivables We record trade receivables at net realizable value. This carrying value includes an appropriate allowance for estimated uncollectible amounts to reflect any loss anticipated on the trade 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. The allowance for doubtful accounts was $12.7 million and $13.2 million as of December 31, 2023, and December 31, 2022, respectively. Inventories Inventories 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 probable the product will not be sold within our freshness specifications. In addition, we reserve for those inventories associated with discontinued SKUs or seasonal or other packaging material changes. Other Current Assets Other current assets include prepaid assets, 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. Property, Plant and Equipment Property, plant and equipment is 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, plant and equipment 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. 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 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 property, plant and equipment. Software maintenance and training costs are expensed in the period incurred. Property, plant and equipment held under finance lease are depreciated using the straight-line method over the esti |
New Accounting Pronouncements
New Accounting Pronouncements | 12 Months Ended |
Dec. 31, 2023 | |
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 and remains effective through December 31, 2024. The guidance permits a company to elect certain optional expedients and exceptions when affected by the changes in reference rate reform. We have adopted this guidance and elected to apply certain optional expedients related to our derivative instruments with maturity dates extending beyond the discontinuance date of LIBOR. Specifically, in May 2023, we amended our 2026 forward starting interest rate swaps to replace LIBOR with SOFR and applied the optional expedients to account for the transition. None of the changes made as a result of reference rate reform had a material impact on our financial statements. 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. We adopted this guidance, with the exception of the rollforward disclosure requirement, starting with our quarterly report for the three months ended March 31, 2023. See Note 1, "Basis of Presentation and Summary of Significant Accounting Policies" for additional information on our supplier finance programs. 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. New Accounting Pronouncements Not Yet Adopted In December 2023, the FASB issued authoritative guidance intended to enhance transparency and decision usefulness of income tax disclosures. The amendments are focused on two specific disclosure areas: the rate reconciliation and income taxes paid. More disaggregated income tax information, particularly at an individual jurisdiction level (country, state or local territory), is required in both disclosures if certain quantitative thresholds are met. The amendments to the rate reconciliation require the use of specific categories, with disclosure of percentages and reporting currency amounts. If not already evident, further explanation of the nature, effect and underlying causes of the reconciling items must be included. The amendments to the income taxes paid disclosure require reporting of net income taxes paid disaggregated by federal (national), state and foreign. This guidance is effective for us starting with our annual report for the year ending December 31, 2025 and the guidance should be applied prospectively. We are permitted to early adopt and can choose to apply the guidance retrospectively. When adopted, we expect the guidance to have an impact on disclosures only and to not have a material effect on our financial position or results of operations. In November 2023, the FASB issued authoritative guidance intended to improve reportable segment disclosures and to enhance disclosures about significant reportable segment expenses. The amendments require additional disclosures for both annual and interim periods including disclosures of significant segment expenses that are regularly provided to the chief operating decision maker ("CODM") and included within each reported measure of segment profit or loss as well as other segment items by reportable segment, among other disclosures. This guidance is effective for us starting with our annual report for the year ending December 31, 2024 and the subsequent interim periods and is required to be applied retrospectively to all prior periods presented. Because the amendments do not change the methodology for the identification of operating segments, the aggregation of those operating segments or the application of the quantitative thresholds to determine reportable segments, we do not expect the guidance to have a material effect on our financial position or results of operations. Other than the items noted above, there have been no new accounting pronouncements not yet effective or adopted in the current year that we believe have a significant impact, or potential significant impact, to our consolidated financial statements. |
Investments
Investments | 12 Months Ended |
Dec. 31, 2023 | |
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. We have not provided any financial support to any of our VIEs during the year ended December 31, 2023 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 which are presented within accounts payable and other current liabilities and trade receivables, net respectively on the consolidated balance sheets. 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 and RMBC, 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 $35.4 million and $33.3 million recorded as of December 31, 2023 and December 31, 2022, 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 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). We hold a 50.9% ownership interest in BRI. BRI charges the brewers service fees that are designed so the entity operates on a cash neutral basis. This service 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 sold in the Ontario market. Based on the existing structure, control is shared, and we do not anticipate becoming the primary beneficiary in the foreseeable future. See "Affiliate Transactions" below for BRI affiliate due to and due from balances as of December 31, 2023 and December 31, 2022, 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 hold a 34.0% ownership interest in BDL. BDL charges the owners service fees that are designed so the entity operates at break-even profit levels and annually, operates on a cash neutral basis. This service 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 sold in these provinces. See "Affiliate Transactions" section below for BDL affiliate due to and due from balances as of December 31, 2023 and December 31, 2022, 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). ZOA During the third quarter of 2023, we increased our investment in ZOA Energy, LLC (“ZOA”), an energy drink company operating in the U.S. and Canada, bringing our ownership interest to 40%, on a fully diluted basis. This increase in ownership resulted in the transition of accounting for our investment from the fair value method under ASC 321 to equity method investment accounting under ASC 323 on a prospective basis and the cash outflow associated with the investment is reflected within Other in the Investing activities section of the consolidated statements of cash flows. Subsequent to the increase in our investment, the carrying value of our recorded ownership investment exceeded our ratable portion of underlying equity in the net assets of ZOA, and this basis difference was fully allocated to equity method goodwill. In addition, under our agreement, we hold an option to purchase incremental shares to increase our ownership to over 50% starting September 2024 for a 90-day period thereafter. Furthermore, we have an agreement to distribute ZOA’s products in certain channels in the U.S. Other TYC, a joint venture equally owned by MCBC and DGY West was formed to expand the commercialization of Yuengling's brands for new market expansion outside of Yuengling's original 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 2023, TYC expanded into three new markets consisting of Kansas, Oklahoma and Missouri. We 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. The total balance of our equity method investments was $222.7 million and $96.9 million as of December 31, 2023 and December 31, 2022, respectively. Our equity method investments are all within the Americas segment and are included in other assets on the consolidated balance sheets. These 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, 2023 or December 31, 2022, for any of these companies. We consider each of our equity method investments to be affiliates. Affiliate Transactions Amounts due from and due to affiliates as of December 31, 2023 and December 31, 2022, respectively, are as follows: Amounts due from affiliates Amounts due to affiliates December 31, 2023 December 31, 2022 December 31, 2023 December 31, 2022 (In millions) BRI $ — $ 4.7 $ 1.6 $ (0.3) BDL 3.2 0.2 — — Other 4.2 5.4 5.2 1.3 Total $ 7.4 $ 10.3 $ 6.8 $ 1.0 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 On August 3, 2023, we sold our 57.5% controlling interest in Truss LP ("Truss") to Tilray Brands for an immaterial amount and recognized a loss of $11.1 million within other operating income (expense), net The following summarizes the assets and liabilities of our consolidated VIEs (including noncontrolling interests): As of December 31, 2023 December 31, 2022 Total Assets Total Liabilities Total Assets Total Liabilities (In millions) RMMC/RMBC $ 261.6 $ 24.7 $ 228.2 $ 21.2 Other $ 2.8 $ 3.3 $ 43.3 $ 16.1 As of December 31, 2023, for RMMC/RMBC, $108.2 million and $120.7 million were recorded in inventories, net and property, plant and equipment, net, respectively, on the consolidated balance sheets. As of December 31, 2022, for RMMC/RMBC, $81.1 million and $128.6 million were recorded in inventories, net and property, plant and equipment, net, respectively on the consolidated balance sheets. |
Inventories
Inventories | 12 Months Ended |
Dec. 31, 2023 | |
Inventory Disclosure [Abstract] | |
Inventories | Inventories As of December 31, 2023 December 31, 2022 (In millions) Finished goods $ 245.7 $ 269.1 Work in process 97.4 71.9 Raw materials 275.1 290.4 Packaging materials 184.1 161.5 Inventories, net $ 802.3 $ 792.9 |
Property, Plant, and Equipment
Property, Plant, and Equipment | 12 Months Ended |
Dec. 31, 2023 | |
Property, Plant and Equipment [Abstract] | |
Property, Plant, and Equipment | Property, Plant and Equipment As of December 31, 2023 December 31, 2022 (In millions) Land and improvements $ 365.1 $ 355.9 Buildings and improvements 1,283.4 1,205.5 Production and office equipment 5,156.0 4,897.3 Software 543.8 533.3 Construction in progress 783.7 497.4 Other 414.1 395.3 Total property, plant and equipment cost 8,546.1 7,884.7 Less: accumulated depreciation (4,101.6) (3,661.9) Property, plant and equipment, net $ 4,444.5 $ 4,222.8 |
Goodwill and Intangible Assets
Goodwill and Intangible Assets | 12 Months Ended |
Dec. 31, 2023 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill and Intangible Assets | Goodwill and Intangible Assets The changes in the carrying value of goodwill is presented in the table below by segment. Americas EMEA&APAC Consolidated (1) (In millions) 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) Balance as of December 31, 2022 $ 5,291.9 $ — $ 5,291.9 Acquisition (2) 29.2 — 29.2 Foreign currency translation, net 4.2 — 4.2 Balance as of December 31, 2023 $ 5,325.3 $ — $ 5,325.3 (1) Accumulated impairment losses for the Americas segment was $1,513.3 million as of December 31, 2023 and December 31, 2022. The EMEA&APAC goodwill balance was fully impaired during the year ended December 31, 2020 with an accumulated impairment loss of $1,484.3 million. (2) Goodwill acquired in our Americas segment was related to the Blue Run acquisition further discussed in Note 1, "Basis of Presentation and Summary of Significant Accounting Policies" . The goodwill acquired is not deductible for tax purposes. The following table presents details of our intangible assets, other than goodwill, as of December 31, 2023: Useful life Gross Accumulated Net (Years) (In millions) Intangible assets subject to amortization Brands 10 - 50 $ 5,029.2 $ (1,634.4) $ 3,394.8 License agreements and distribution rights 10 - 20 204.9 (117.6) 87.3 Other 5 - 40 84.8 (25.8) 59.0 Intangible assets not subject to amortization Brands Indefinite 8,002.0 — 8,002.0 Distribution networks Indefinite 763.9 — 763.9 Other Indefinite 307.6 — 307.6 Total $ 14,392.4 $ (1,777.8) $ 12,614.6 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 increase in the gross carrying amounts of intangible assets from December 31, 2022 to December 31, 2023 was primarily driven by the acquired brand intangible asset related to Blue Run as well as the impact of foreign currency exchange rates as a significant amount of intangible assets are denominated in foreign currencies, partially offset by the impairment of the Staropramen family of brands during the fourth quarter of 2023. Based on foreign exchange rates as of December 31, 2023, the estimated future amortization expense of intangible assets for the next five years is as follows: Year Amount (In millions) 2024 $ 210.8 2025 $ 210.8 2026 $ 192.3 2027 $ 127.8 2028 $ 126.2 Amortization expense of intangible assets was $207.3 million, $208.1 million and $218.0 million for the years ended December 31, 2023, December 31, 2022 and December 31, 2021, respectively. This expense was primarily presented within MG&A in our consolidated statements of operations. Annual 2023 Impairment Assessment We completed our required annual goodwill and indefinite-lived intangible asset impairment testing as of October 1, 2023, 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 fair value of the Americas reporting unit was in excess of its carrying value by slightly less than 15% and therefore no goodwill impairment charge was recorded. The fair value of the Americas reporting unit increased during the current year and was largely impacted by shifts in consumer preferences in the U.S. market towards our core brands leading to increased volume and share, paired with pricing increases put in place starting in late 2022 as well as lower than previously expected inflation rates. This is partially offset by an increase to the discount rate as a result of the recent rising interest rate environment. Specifically, the discount rate used in developing our annual fair value estimates for the Americas reporting unit in the current year was 9.00% based on market-specific factors, primarily the recent interest rate environment, as compared to 8.75% used as of the October 1, 2022 annual testing date. Due to the current amount by which the Americas reporting unit fair value exceeds its carrying value, the reporting unit continues to be at a heightened risk of future impairment. We continue to focus on growing our core power brand net sales, aggressively premiumizing our portfolio and scaling and expanding beyond beer. While progress has been made on these strategies over recent years, including 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. These growth targets have been aligned 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 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 As of the October 1, 2023 testing date, the carrying value of the Staropramen family of brands in EMEA&APAC was determined to be in excess of its fair value such that an impairment loss of $160.7 million was recorded within other non-operating income (expense), net. As this is a partial impairment, the intangible asset is considered to be at a heightened risk of future impairment, and the carrying value of the brand was $426.9 million as of December 31, 2023. The decline in the fair value in the current year was impacted by reductions in management forecasts due to delays and changes in strategic priorities for expansion and distribution of the brand in certain export and license markets, increased optionality for consumers in the premium sector in key markets, and reduced demand in Central and Eastern Europe due to cost inflation pressures on consumers as well as macroeconomic factors including an increase to the discount rate as a result of the recent rising interest rate environment. The discount rate used in developing our annual fair value estimates for the Staropramen family of brands in the current year was 13.25% based on company-specific and market-specific factors, as compared to 11.25% used as of the October 1, 2022 annual testing date. The fair value of the Coors brands in the Americas, the Miller brands in the U.S. and the Carling brands in EMEA&APAC all exceeded their respective carrying values by over 15.0% as of the annual testing date. 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. 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, changes in trends and consumer preferences within the industry towards other brands or product categories, 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 potential impacts this 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, could also result in a meaningful change to our weighted-average cost of capital calculation and other inputs used in our impairment assessment. Annual 2022 Impairment Assessment We completed our required annual goodwill and indefinite-lived intangible asset impairment analysis as of October 1, 2022 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. The decline in the fair value of the Americas reporting unit 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 and a softening beer market in certain markets in which we operate. In conjunction with the annual 2022 goodwill impairment analysis, we also evaluated the indefinite-lived and definite-lived intangible assets within our Americas and EMEA&APAC reporting units 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. 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 the year ended December 31, 2023 or 2022 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, 2023 | |
Payables and Accruals [Abstract] | |
Accounts Payable and Other Current Liabilities | Accounts Payable and Other Current Liabilities As of December 31, 2023 December 31, 2022 (In millions) Accounts payable and accrued trade payables $ 2,149.8 $ 2,068.2 Accrued compensation 316.8 249.2 Accrued excise and other non-income related taxes 255.1 239.9 Accrued interest 82.8 87.6 Returnable container deposit liabilities 113.2 116.8 Operating lease liabilities 46.9 44.7 Other (1) 216.2 171.9 Accounts payable and other current liabilities $ 3,180.8 $ 2,978.3 (1) |
Leases
Leases | 12 Months Ended |
Dec. 31, 2023 | |
Leases [Abstract] | |
Leases | Leases For the years ended December 31, 2023, December 31, 2022 and December 31, 2021, lease expense (including immaterial short-term and variable lease costs) was as follows. For the years ended December 31, 2023 December 31, 2022 December 31, 2021 (In millions) Operating lease expense $ 81.3 $ 72.5 $ 73.2 Finance lease expense 9.5 9.5 10.4 Total lease expense $ 90.8 $ 82.0 $ 83.6 Supplemental cash flow information related to leases for the years ended December 31, 2023, December 31, 2022 and December 31, 2021 was as follows. For the years ended December 31, 2023 December 31, 2022 December 31, 2021 (In millions) Cash paid for amounts included in the measurements of lease liabilities Operating cash flows for operating leases $ 58.7 $ 52.5 $ 56.8 Operating cash flows for finance leases $ 3.3 $ 3.6 $ 4.5 Financing cash flows for finance leases $ 5.1 $ 4.4 $ 3.6 Supplemental non-cash information on right-of-use assets obtained in exchange for new lease liabilities Operating leases $ 115.7 $ 63.9 $ 34.0 Finance leases $ 1.7 $ 3.8 $ 7.5 Supplemental balance sheet information related to leases as of December 31, 2023 and December 31, 2022 was as follows: As of December 31, 2023 December 31, 2022 Balance Sheet Classification (In millions) Operating Leases Operating lease right-of-use assets Other assets $ 200.7 $ 132.7 Current operating lease liabilities Accounts payable and other current liabilities $ 46.9 $ 44.7 Non-current operating lease liabilities Other liabilities 163.9 99.3 Total operating lease liabilities $ 210.8 $ 144.0 Finance Leases Finance lease right-of-use assets Property, plant and equipment, net $ 46.4 $ 50.2 Current finance lease liabilities Current portion of long-term debt and short-term borrowings $ 5.2 $ 5.3 Non-current finance lease liabilities Long-term debt 48.5 56.2 Total finance lease liabilities $ 53.7 $ 61.5 The weighted-average remaining lease term and discount rate as of December 31, 2023 were as follows: Weighted-Average Remaining Lease Term (Years) Weighted-Average Discount Rate Operating leases 7.5 5.1% Finance leases 9.6 6.4% Based on foreign exchange rates as of December 31, 2023, maturities of lease liabilities were as follows: Operating Leases Finance Leases (In millions) 2024 $ 53.6 $ 8.5 2025 46.4 8.1 2026 37.1 11.5 2027 24.6 5.0 2028 18.7 4.7 Thereafter 90.3 36.5 Total lease payments $ 270.7 $ 74.3 Less: interest (59.9) (20.6) Present value of lease liabilities $ 210.8 $ 53.7 As of December 31, 2023, we entered into leases that have not yet commenced with estimated aggregated future lease payments of approximately $23 million. The leases are expected to commence in 2024. |
Leases | Leases For the years ended December 31, 2023, December 31, 2022 and December 31, 2021, lease expense (including immaterial short-term and variable lease costs) was as follows. For the years ended December 31, 2023 December 31, 2022 December 31, 2021 (In millions) Operating lease expense $ 81.3 $ 72.5 $ 73.2 Finance lease expense 9.5 9.5 10.4 Total lease expense $ 90.8 $ 82.0 $ 83.6 Supplemental cash flow information related to leases for the years ended December 31, 2023, December 31, 2022 and December 31, 2021 was as follows. For the years ended December 31, 2023 December 31, 2022 December 31, 2021 (In millions) Cash paid for amounts included in the measurements of lease liabilities Operating cash flows for operating leases $ 58.7 $ 52.5 $ 56.8 Operating cash flows for finance leases $ 3.3 $ 3.6 $ 4.5 Financing cash flows for finance leases $ 5.1 $ 4.4 $ 3.6 Supplemental non-cash information on right-of-use assets obtained in exchange for new lease liabilities Operating leases $ 115.7 $ 63.9 $ 34.0 Finance leases $ 1.7 $ 3.8 $ 7.5 Supplemental balance sheet information related to leases as of December 31, 2023 and December 31, 2022 was as follows: As of December 31, 2023 December 31, 2022 Balance Sheet Classification (In millions) Operating Leases Operating lease right-of-use assets Other assets $ 200.7 $ 132.7 Current operating lease liabilities Accounts payable and other current liabilities $ 46.9 $ 44.7 Non-current operating lease liabilities Other liabilities 163.9 99.3 Total operating lease liabilities $ 210.8 $ 144.0 Finance Leases Finance lease right-of-use assets Property, plant and equipment, net $ 46.4 $ 50.2 Current finance lease liabilities Current portion of long-term debt and short-term borrowings $ 5.2 $ 5.3 Non-current finance lease liabilities Long-term debt 48.5 56.2 Total finance lease liabilities $ 53.7 $ 61.5 The weighted-average remaining lease term and discount rate as of December 31, 2023 were as follows: Weighted-Average Remaining Lease Term (Years) Weighted-Average Discount Rate Operating leases 7.5 5.1% Finance leases 9.6 6.4% Based on foreign exchange rates as of December 31, 2023, maturities of lease liabilities were as follows: Operating Leases Finance Leases (In millions) 2024 $ 53.6 $ 8.5 2025 46.4 8.1 2026 37.1 11.5 2027 24.6 5.0 2028 18.7 4.7 Thereafter 90.3 36.5 Total lease payments $ 270.7 $ 74.3 Less: interest (59.9) (20.6) Present value of lease liabilities $ 210.8 $ 53.7 As of December 31, 2023, we entered into leases that have not yet commenced with estimated aggregated future lease payments of approximately $23 million. The leases are expected to commence in 2024. |
Debt
Debt | 12 Months Ended |
Dec. 31, 2023 | |
Debt Disclosure [Abstract] | |
Debt | Debt Debt Obligations As of December 31, 2023 December 31, 2022 (In millions) Long-term debt CAD 500 million 2.84% notes due July 2023 (1)(2)(3) — 368.9 EUR 800 million 1.25% notes due July 2024 (1) 883.1 856.4 CAD 500 million 3.44% notes due July 2026 (1)(2) 377.6 368.9 $2.0 billion 3.0% notes due July 2026 (1) 2,000.0 2,000.0 $1.1 billion 5.0% notes due May 2042 (4) 1,100.0 1,100.0 $1.8 billion 4.2% notes due July 2046 (1) 1,800.0 1,800.0 Finance leases 53.7 61.5 Other 23.5 25.4 Less: unamortized debt discounts and debt issuance costs (35.5) (39.7) Total long-term debt (including current portion) 6,202.4 6,541.4 Less: current portion of long-term debt (890.3) (376.2) Total long-term debt $ 5,312.1 $ 6,165.2 Short-term borrowings (5) 21.5 20.9 Current portion of long-term debt 890.3 376.2 Current portion of long-term debt and short-term borrowings $ 911.8 $ 397.1 (1) These senior notes were issued in 2016 in order to partially fund the financing of the MillerCoors Acquisition (USD Notes, EUR Notes and CAD Notes). Total remaining debt issuance costs capitalized in connection with these notes including underwriting fees, discounts and other financing related costs, were $27.2 million as of December 31, 2023 and are being amortized over the respective and remaining terms. (2) We entered into forward starting interest rate swap agreements to hedge interest rate volatility for a 10-year period until the swaps 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 CAD 500 million 3.44% notes maturing July 2026 ("2026 CAD notes"), up to the full 10-year term of the interest rate swaps. The amortizing loss resulted in an increase in our effective cost of borrowing compared to the stated coupon rates by 0.4% on the 2026 CAD notes. See Note 10, "Derivative Instruments and Hedging Activities" for further details on the forward starting interest rate swaps. (3) We repaid our CAD 500 million 2.84% notes upon maturity on July 15, 2023 using cash on hand. (4) On May 3, 2012, we issued approximately $1.9 billion of senior notes with $1.1 billion remaining due in 2042. The total remaining debt issuance costs capitalized in connection with these notes, including the underwriting fees and discounts, were $8.3 million as of December 31, 2023 and are being amortized over the remaining term of the 2042 notes. (5) Our short-term borrowings include bank overdrafts, borrowings on our overdraft facilities and other items. As of December 31, 2023, we had $16.5 million in bank overdrafts and $75.5 million in bank cash related to our cross-border, cross-currency cash pool for a net positive position of $59.0 million. 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. In addition, we have CAD, GBP and USD overdraft facilities under which we had no outstanding borrowings as of December 31, 2023 or December 31, 2022. 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, 2023 and December 31, 2022, the fair value of our outstanding long-term debt (including current portion of long-term debt) was approximately $5.9 billion. 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 On June 26, 2023, we amended and restated our multi-currency revolving credit facility to, among other things, extend the term through June 26, 2028, and to increase the borrowing capacity to $2.0 billion. This $2.0 billion revolving credit facility amended our pre-existing $1.5 billion revolving credit facility, which was scheduled to mature on July 7, 2024. On September 28, 2023, we amended our commercial paper program, which reduces borrowing capacity under the revolving credit facility, to a maximum borrowing capacity of $2.0 billion to borrow at any time at variable interest rates. The $150 million sub-facility available for the issuance of letters of credit remains unchanged. Concurrent with the amended and restated multi-currency revolving credit facility, in the second quarter of 2023, we incurred incremental issuance costs of $5.2 million related to the $2.0 billion revolving credit facility, which are recorded within other current assets, net, and other assets on the consolidated balance sheets and are being amortized over the term of the facility. We use this facility from time to time to fund the repayment of debt upon maturity and for working capital or general purposes. We had no borrowings drawn on this revolving credit facility and no commercial paper borrowings as of December 31, 2023 and December 31, 2022. 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. Under the amended and restated $2.0 billion revolving credit facility, we are required to maintain a maximum leverage ratio, calculated as net debt to EBITDA (as defined in the revolving credit facility agreement) of 4.00x, measured as of the last day of each fiscal quarter through maturity of the credit facility. As of December 31, 2023 and December 31, 2022, 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, 2023 rank pari-passu. As of December 31, 2023, the aggregate principal debt maturities of long-term debt and short-term borrowings, based on foreign exchange rates as of December 31, 2023, were as follows: Year Amount (In millions) 2024 $ 904.6 2025 — 2026 2,377.6 2027 — 2028 — Thereafter 2,900.0 Total $ 6,182.2 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, 2023 December 31, 2022 December 31, 2021 (In millions) Interest incurred $ 243.4 $ 257.4 $ 269.1 Interest capitalized (9.4) (6.8) (8.8) Interest expensed $ 234.0 $ 250.6 $ 260.3 |
Derivative Instruments and Hedg
Derivative Instruments and Hedging Activities | 12 Months Ended |
Dec. 31, 2023 | |
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 minimum investment grade credit ratings of BBB- by Standard & Poor's (or the equivalent) or Baa3 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, 2023, we did not have any collateral posted with any of our counterparties. Derivative Accounting Policies Overview Our forward starting interest rate swaps and most of our foreign currency forwards 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 MillerCoors 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. 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 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. The swaps had a termination date of September 2025 mirroring the terms of initially forecasted CAD debt issuances. 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 swaps as cash flow hedges and accordingly, a portion of the CAD 39.2 million ($29.5 million at settlement) loss on the swaps is being reclassified from AOCI and amortized to interest expense over the remaining term of the 2026 CAD notes up to the full 10-year term of the swaps. Additionally, in 2023 we repaid our CAD 500 million 2.84% notes upon maturity which resulted in an acceleration of amortization of the loss for an immaterial amount. The remaining unamortized portion of the loss in AOCI as of December 31, 2023 was $5.7 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 entity's functional currency and most 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. In the second quarter of 2023, we entered into approximately CAD 260 million (approximately $195 million USD) of foreign exchange forward contracts to manage our exposure to foreign currency fluctuations related to the repayment of our CAD 500 million 2.84% notes that matured on July 15, 2023. These contracts were not designated in hedge accounting relationships; as such, changes in the fair value were recorded in other non-operating income (expense), net in the consolidated statements of operations. These contracts settled on July 12, 2023 in advance of the notes repayment for an immaterial amount. 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, sweeteners, 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, sweeteners 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 respective 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 our former 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 table below summarizes our derivative assets and (liabilities) that were measured at fair value as of December 31, 2023 and December 31, 2022. 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 for all derivative contracts as of December 31, 2023 and 2022 were valued using significant other observable inputs, also known as Level 2 inputs. As of December 31, 2023 December 31, 2022 (In millions) Forward starting interest rate swaps $ 41.6 40.0 Foreign currency forwards (1.4) 7.6 Commodity swaps and options (30.4) 69.0 Total $ 9.8 $ 116.6 As of December 31, 2023 and December 31, 2022, we had no significant transfers between Level 1 and Level 2. New derivative contracts transacted during 2023 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, 2023 and December 31, 2022, and our consolidated statements of operations for the years ended December 31, 2023, December 31, 2022 and December 31, 2021. Fair Value of Derivative Instruments in the Consolidated Balance Sheets (in millions) December 31, 2023 Asset derivatives Liability derivatives Notional amount Balance sheet location Fair value Balance sheet location Fair value Derivatives designated as hedging instruments: Forward starting interest rate swaps $ 1,000.0 Other non-current assets $ 41.6 Other liabilities $ — Foreign currency forwards $ 219.4 Other current assets 1.1 Accounts payable and other current liabilities (1.2) Other non-current assets — Other liabilities (1.3) Total derivatives designated as hedging instruments $ 42.7 $ (2.5) Derivatives not designated as hedging instruments: Commodity swaps (1) $ 653.5 Other current assets $ 11.1 Accounts payable and other current liabilities $ (42.0) Other non-current assets 6.6 Other liabilities (6.1) Commodity options (1) $ 21.7 Other current assets 0.2 Accounts payable and other current liabilities (0.2) Total derivatives not designated as hedging instruments $ 17.9 $ (48.3) December 31, 2022 Asset derivatives Liability derivatives Notional amount Balance sheet location Fair value Balance sheet location Fair value Derivatives designated as hedging instruments: Forward starting 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) (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, 2023 Forward starting interest rate swaps $ 1.6 Interest income (expense), net $ (5.2) Foreign currency forwards (5.2) Cost of goods sold 4.9 Other non-operating income (expense), net (1.0) Total $ (3.6) $ (1.3) 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) 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, 2023 EUR 800 million notes due 2024 $ (26.5) Other non-operating income (expense), net $ — Total $ (26.5) $ — 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 (1) Represents amounts excluded from the assessment of effectiveness for which the difference between changes in fair value and period amortization is recorded in OCI. 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, 2023, December 31, 2022 and December 31, 2021, respectively, we did not reclassify any amounts related to net investment hedges from AOCI into earnings. We expect net losses o f approximately $3 million (pretax) recorded in AOCI as of December 31, 2023 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, 2023 is approximately 3 years, including 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, 2023 Commodity swaps Cost of goods sold $ (61.7) Foreign currency swaps Other non-operating income (expense), net 2.7 Total $ (59.0) 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 |
Employee Retirement Plans and P
Employee Retirement Plans and Postretirement Benefits | 12 Months Ended |
Dec. 31, 2023 | |
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 make contributions to multi-employer pension plans. Contributions to multi-employer pension plans were $4.1 million, $3.6 million and $7.1 million for the years ended December 31, 2023, 2022 and 2021, 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 $31.2 million, $33.0 million and $33.8 million for the years ended December 31, 2023, 2022 and 2021, respectively. There were no subsidies received for the years ended December 31, 2023, 2022 and 2021. Defined Benefit and OPEB Plans Net Periodic Pension and OPEB (Benefit) Cost For the years ended December 31, 2023 December 31, 2022 December 31, 2021 Pension OPEB Consolidated Pension OPEB Consolidated Pension OPEB Consolidated (In millions) Service cost Service cost $ 0.9 $ 3.3 $ 4.2 $ 1.3 $ 5.5 $ 6.8 $ 2.7 $ 6.0 $ 8.7 Other pension and postretirement (benefit) cost, net Interest cost 140.4 22.5 162.9 103.9 16.1 120.0 93.9 14.6 108.5 Expected return on plan assets, net of expenses (157.8) — (157.8) (154.2) — (154.2) (161.6) — (161.6) Amortization of prior service (benefit) cost 0.3 (0.7) (0.4) 0.3 (0.7) (0.4) 0.4 (0.7) (0.3) Amortization of net actuarial (gain) loss 17.1 (31.7) (14.6) 5.6 (10.2) (4.6) 8.7 (6.7) 2.0 Curtailment, settlement or special termination benefit (gain) loss (1) — — — 2.9 — 2.9 5.4 — 5.4 Expected participant contributions (0.3) — (0.3) (0.3) — (0.3) (0.4) — (0.4) Total other pension and postretirement (benefit) cost, net (0.3) (9.9) (10.2) (41.8) 5.2 (36.6) (53.6) 7.2 (46.4) Net periodic pension and OPEB (benefit) cost $ 0.6 $ (6.6) $ (6.0) $ (40.5) $ 10.7 $ (29.8) $ (50.9) $ 13.2 $ (37.7) (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, 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. 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 for the year ended December 31, 2021 was primarily a result of lower interest rates as of December 31, 2020, which were used to establish the 2021 periodic pension cost. Obligations and Changes in Funded Status For the year ended December 31, 2023 For the year ended December 31, 2022 Pension OPEB Total Pension OPEB Total (In millions) Change in benefit obligation Prior year benefit obligation $ 2,978.0 $ 478.3 $ 3,456.3 $ 5,095.8 $ 648.7 $ 5,744.5 Service cost, net of expected employee contributions 0.6 3.3 3.9 1.0 5.5 6.5 Interest cost 140.4 22.5 162.9 103.9 16.1 120.0 Actual employee contributions 0.3 — 0.3 0.3 — 0.3 Actuarial (gain) loss 38.0 1.3 39.3 (1,181.0) (144.6) (1,325.6) Plan amendments — — — — (0.1) (0.1) Benefits paid (226.2) (37.0) (263.2) (263.8) (38.7) (302.5) Curtailment, settlement and special termination — — — (460.6) 0.2 (460.4) Foreign currency exchange rate change 87.0 2.2 89.2 (317.6) (8.8) (326.4) Benefit obligation at end of year $ 3,018.1 $ 470.6 $ 3,488.7 $ 2,978.0 $ 478.3 $ 3,456.3 Change in plan assets Prior year fair value of assets $ 3,336.8 $ — $ 3,336.8 $ 5,667.5 $ — $ 5,667.5 Actual return on plan assets 188.7 — 188.7 (1,272.9) — (1,272.9) Employer contributions (1.7) 37.0 35.3 (0.5) 38.7 38.2 Actual employee contributions 0.3 — 0.3 0.3 — 0.3 Curtailment, settlement and special termination — — — (460.6) — (460.6) Benefits and plan expenses paid (226.2) (37.0) (263.2) (263.8) (38.7) (302.5) Foreign currency exchange rate change 99.0 — 99.0 (333.2) — (333.2) Fair value of plan assets at end of year $ 3,396.9 $ — $ 3,396.9 $ 3,336.8 $ — $ 3,336.8 Funded status $ 378.8 $ (470.6) $ (91.8) $ 358.8 $ (478.3) $ (119.5) Amounts recognized in the Consolidated Balance Sheets Other non-current assets $ 416.9 $ — $ 416.9 $ 397.2 $ — $ 397.2 Accounts payable and other current liabilities (3.6) (39.3) (42.9) (3.9) (39.5) (43.4) Pension and postretirement benefits (34.5) (431.3) (465.8) (34.5) (438.8) (473.3) Net amounts recognized $ 378.8 $ (470.6) $ (91.8) $ 358.8 $ (478.3) $ (119.5) The accumulated benefit obligation for our defined benefit pension plans was approximately $3.0 billion as of December 31, 2023 and December 31, 2022, respectively. As of December 31, 2023 and December 31, 2022, 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 was as follows: As of December 31, 2023 December 31, 2022 (In millions) Accumulated benefit obligation $ 38.1 $ 38.4 Projected benefit obligation $ 38.1 $ 38.4 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, 2023 As of December 31, 2022 Pension OPEB Total Pension OPEB Total (In millions) Net actuarial (gain) loss $ 773.3 $ (260.4) $ 512.9 $ 766.4 $ (278.2) $ 488.2 Net prior service (benefit) cost 9.4 (1.7) 7.7 9.7 (0.8) 8.9 Total not yet recognized $ 782.7 $ (262.1) $ 520.6 $ 776.1 $ (279.0) $ 497.1 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 years ended December 31, 2023, 2022 and 2021 were as follows: For the years ended December 31, 2023 December 31, 2022 December 31, 2021 Pension OPEB Pension OPEB Pension OPEB Weighted-average assumptions: Discount rate 5.01% 4.90% 2.27% 2.59% 1.84% 2.10% Rate of compensation increase 2.00% N/A 2.00% N/A 2.00% N/A Expected return on plan assets 4.91% N/A 3.11% N/A 3.03% 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 N/A Ranging ratably from 6.00% in 2021 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 health 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, 2023 and December 31, 2022, were as follows: As of December 31, 2023 As of December 31, 2022 Pension OPEB Pension OPEB Weighted-average assumptions Discount rate 4.74% 4.64% 5.01% 4.90% Rate of compensation increase 2.00% N/A 2.00% N/A Health care cost trend rate N/A Ranging ratably from 6.75% in 2024 to 3.57% in 2040 N/A Ranging ratably from 6.50% in 2023 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, 2023 from December 31, 2022, was primarily due to a decrease in interest rates at the end of 2023 across all plans. 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 an intent 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, 2023. Target Actual Equities 7.2% 7.8% Fixed income 74.2% 72.2% Real estate 4.7% 4.8% Annuities and longevity swap 13.4% 13.4% Other 0.5% 1.8% Significant Concentration Risks We periodically evaluate our defined benefit pension plan assets for concentration risks. As of December 31, 2023, 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, 2023, 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. • 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 repurchase agreements, recoverable taxes for taxes paid and awaiting reclaim due to the tax exempt nature of the pension plan and private equity. 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 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. • NAV per share practical expedient—Includes our debt funds, equity funds, hedge 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. 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, 2023 Total as of December 31, 2023 Quoted prices Significant Significant Cash and cash equivalents Cash $ 39.5 $ 39.5 $ — $ — Trades awaiting settlement — — — — Bank deposits, short-term bills and notes 26.4 — 26.4 — Debt Government debt securities 452.3 — 452.3 — Corporate debt securities 119.3 — 119.3 — Interest and inflation linked assets 629.9 — 616.0 13.9 Collateralized debt securities 0.3 — — 0.3 Annuities and longevity swap Buy-in annuities and longevity swap 449.8 — — 449.8 Other Repurchase agreements (285.8) (285.8) — — Recoverable taxes 0.2 0.2 — — Private equity 10.6 — — 10.6 Total fair value of investments excluding NAV per share practical expedient $ 1,442.5 $ (246.1) $ 1,214.0 $ 474.6 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, 2023 (In millions) Fair value of investments excluding NAV per share practical expedient $ 1,442.5 Fair value of investments using NAV per share practical expedient Debt funds 1,263.9 Equity funds 260.7 Real estate funds 126.3 Private equity funds 37.8 Hedge funds 265.7 Total fair value of plan assets $ 3,396.9 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 fair value hierarchy 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 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, 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 Total gain or loss (realized/unrealized) Realized gain (loss) — Unrealized gain (loss) included in AOCI (34.2) Purchases, issuances, settlements (2.7) Foreign exchange translation (loss) gain 24.5 Balance as of December 31, 2023 $ 474.6 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, 2024, 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, 2023. Additionally, we anticipate utilizing approximately $6 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 for the next ten years, based on foreign exchange rates as of December 31, 2023, are as follows: Expected benefit payments Pension OPEB (In millions) 2024 $ 233.1 $ 39.3 2025 $ 227.9 $ 39.1 2026 $ 229.0 $ 38.8 2027 $ 229.9 $ 38.6 2028 $ 231.0 $ 38.5 2029-2033 $ 1,170.0 $ 186.4 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 10%. Both employee and employer contributions are made in cash in accordance with participant investment elections. We recognized costs associated with defined contribution plans of $76.8 million, $73.0 million and $77.8 million for the years ended December 31, 2023, 2022 and 2021, respectively. |
Income Tax
Income Tax | 12 Months Ended |
Dec. 31, 2023 | |
Income Tax Disclosure [Abstract] | |
Income Tax | Income Tax Our income (loss) before income taxes on which the provision for income taxes was computed was as follows: For the years ended December 31, 2023 December 31, 2022 December 31, 2021 (In millions) Domestic $ 1,486.0 $ 228.4 $ 1,307.5 Foreign (233.5) (290.9) (68.5) Total $ 1,252.5 $ (62.5) $ 1,239.0 The components of the provision for income taxes were as follows: For the years ended December 31, 2023 December 31, 2022 December 31, 2021 (In millions) Current Federal $ 200.7 $ 146.1 $ 43.5 State 22.1 22.3 7.1 Foreign 37.3 (17.2) (1.0) Total current tax (benefit) expense $ 260.1 $ 151.2 $ 49.6 Deferred Federal $ 75.0 $ 56.4 $ 163.5 State 27.8 (26.2) 70.4 Foreign (66.8) (57.4) (53.0) Total deferred tax (benefit) expense $ 36.0 $ (27.2) $ 180.9 Total income tax (benefit) expense $ 296.1 $ 124.0 $ 230.5 A reconciliation from the U.S. statutory federal income tax rate to the effective income tax rate was as follows: For the years ended December 31, 2023 December 31, 2022 December 31, 2021 ($ in millions) Statutory federal income tax rate 21.0 % $ 263.0 21.0 % $ (13.1) 21.0 % $ 260.2 State income taxes, net of federal benefits 2.4 % 30.6 6.1 % (3.8) 4.7 % 57.8 Effect of foreign tax rates (2.4) % (30.5) 92.6 % (57.9) (5.5) % (68.3) Effect of foreign tax law and rate changes 0.9 % 11.5 (0.8) % 0.5 1.6 % 19.6 Effect of unrecognized tax benefits 0.8 % 9.5 (20.5) % 12.8 (6.2) % (76.3) Change in valuation allowance 0.2 % 2.5 1.1 % (0.7) (0.1) % (1.1) Goodwill impairment — — (287.0) % 179.3 (0.2) % (2.9) Other, net 0.7 % 9.5 (10.9) % 6.9 3.3 % 41.5 Effective tax rate / Tax (benefit) expense 23.6 % $ 296.1 (198.4) % $ 124.0 18.6 % $ 230.5 The increase in the effective tax rate for the year ended December 31, 2023 when compared to the federal statutory rate was not significant and was due to the impacts of state income taxes, foreign tax rates and the impact of a foreign statutory tax rate change enacted in the fourth quarter of 2023. The decrease in the effective tax rate for the year ended December 31, 2022 when compared to the federal 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 the year ended December 31, 2021 when compared to the federal 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. On August 16, 2022, the Inflation Reduction Act of 2022 ("IRA") was signed into U.S. law. The IRA includes a new corporate alternative minimum tax of 15% on the adjusted financial statement income ("AFSI") of corporations with average AFSI exceeding $1.0 billion over a three-year period, effective for tax years beginning after December 31, 2022. The alternative minimum tax did not impact our financial or cash tax position in 2023. Additionally, the IRA imposes an excise tax of 1% on stock repurchases, effective January 1, 2023. The excise tax is recorded as an incremental cost in treasury stock on our consolidated balance sheets and was immaterial for the year ended December 31, 2023. 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, 2023 December 31, 2022 (In millions) Deferred tax assets Compensation-related obligations $ 43.2 $ 44.7 Pension and postretirement benefits 23.7 33.7 Tax credit carryforwards 36.0 39.0 Tax loss carryforwards 312.8 291.1 Accrued liabilities and other 202.5 149.0 Valuation allowance (61.9) (57.2) Deferred tax assets $ 556.3 $ 500.3 Deferred tax liabilities Fixed assets 354.9 358.9 Partnerships and investments 38.7 33.2 Intangible assets 2,679.9 2,563.2 Derivative instruments 12.2 31.5 Deferred tax liabilities $ 3,085.7 $ 2,986.8 Net deferred tax liabilities $ 2,529.4 $ 2,486.5 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. As of December 31, 2023, we have deferred tax assets for U.S. tax loss and credit carryforwards that expire between 2024 and 2043 of $69.5 million and U.S. tax losses that may be carried forward indefinitely of $10.0 million. We have foreign tax loss and credit carryforwards that expire between 2024 and 2042 of $219.1 million and foreign tax losses that may be carried forward indefinitely of $43.0 million. The following table presents our net deferred tax liabilities as of December 31, 2023 and December 31, 2022. As of December 31, 2023 December 31, 2022 (In millions) Domestic deferred tax liabilities $ 2,029.7 $ 1,927.7 Foreign deferred tax assets 123.7 125.8 Foreign deferred tax liabilities 623.4 684.6 Net deferred tax liabilities $ 2,529.4 $ 2,486.5 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, 2023 and December 31, 2022 excluded $44.1 million and $34.0 million, respectively, of unrecognized tax benefits that have been recorded as a reduction of deferred tax assets, which was 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, was as follows: For the years ended December 31, 2023 December 31, 2022 December 31, 2021 (In millions) Balance at beginning of year $ 39.3 $ 28.0 $ 235.7 Additions for tax positions related to the current year 12.9 15.9 28.6 Additions for tax positions of prior years 0.8 1.9 — Reductions for tax positions related to the current year (2.0) — (24.1) Reductions for tax positions of prior years (1.7) — (48.9) Settlements — (3.7) (161.8) Release due to statute expirations (0.7) (1.3) (3.4) Foreign currency adjustment 0.3 (1.5) 1.9 Balance at end of year $ 48.9 $ 39.3 $ 28.0 Our remaining unrecognized tax benefits as of December 31, 2023, related to tax years that were open to examination. As of December 31, 2023 and December 31, 2022, we had remaining unrecognized tax benefits recorded within other liabilities in our consolidated balance sheets of $5.0 million and $5.4 million, respectively. The remaining balance of our unrecognized tax benefits was recorded within deferred tax liabilities in our consolidated balance sheets. Annual tax provisions included 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. We recognized interest and penalties related to unrecognized tax benefits as part of income taxes on our consolidated statements of operations. Expense (benefit) recognized on interest and penalties related to unrecognized tax benefits as of December 31, 2023, December 31, 2022, and December 31, 2021 was $0.2 million, $(5.9) million and $1.4 million, respectively. If we were to prevail on all uncertain tax positions, the reversal of this accrual, inclusive of interest and penalties, would result in a benefit of $40.9 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 2023, 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 2018 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 2015. 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, 2023 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Commitments and Contingencies Letters of Credit As of December 31, 2023, we had $54 million outstanding in letters of credit with financial institutions. These letters primarily expire throughout 2024 and $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, 2023 and December 31, 2022, the consolidated balance sheets include liabilities related to these guarantees of $36.9 million and $33.3 million, respectively. See Note 3, "Investments" for further detail. Kaiser In 2006, we sold our entire equity interest in our Brazilian unit, Kaiser, to 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 $72.1 million as of December 31, 2023. Our estimate of the indemnity liability for these purchased tax credits as of December 31, 2023 was $8.3 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 may cover certain fees and expenses that Kaiser incurs to manage any cases finally determined to be unsuccessful 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 $3.5 million as of December 31, 2023, 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. 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. Certain 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, 2023. 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) 2024 $ 371.9 $ 150.6 2025 232.0 151.3 2026 208.1 106.4 2027 185.2 80.5 2028 194.2 61.6 Thereafter 182.0 122.7 Total $ 1,373.4 $ 673.1 Total purchases under our long-term unconditional, non-cancellable supply and distribution contracts were approximately $0.4 billion, during each of the years ended December 31, 2023, 2022 and 2021. Litigation, Other Disputes and Environmental Related to litigation, other disputes and environmental issues, we had an aggregate accrued contingent liability of $70.2 million and $77.0 million as of December 31, 2023 and December 31, 2022, 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 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 had “rebranded” itself as “Stone” and was 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 Light 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 denied both parties' post-trial motions on September 25, 2023. On October 24, 2023, MCBC USA filed a notice of appeal in the 9th Circuit Court of Appeals. As of December 31, 2023 and December 31, 2022, the Company had a recorded accrued liability of $58.5 million and $56.6 million, respectively, 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 the 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 The Representative Owners and TBS are parties to an MFA that dictates the terms of the beer distribution and retail systems in Ontario. The initial term of the MFA does not expire until December 31, 2025, and the MFA contains a provision requiring two-year advance notice of the government's intention to not renew the MFA. In December 2023, the Province of Ontario notified the Representative Owners and TBS that it would not be renewing the MFA after the initial term of the MFA expires on December 31, 2025. The Province of Ontario simultaneously announced a set of Key Principles agreed upon between the Province of Ontario, the Representative Owners, and TBS, concerning the intended features of the future marketplace for beer distribution and retail systems in the Province of Ontario to be introduced no later than January 1, 2026. Under the Key Principles, TBS will continue its retail operations and will continue to be the primary distributor of beer in the Province of Ontario at least through 2031. The Key Principles also state grocery stores, convenience stores, gas stations and big-box retailers in the Province of Ontario will be able to apply for licenses to sell beer, wine, cider and ready-to-drink cocktails starting in 2026. We continue to evaluate the impacts of the Key Principles on our results of operations. 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 the years ended December 31, 2023, 2022 and 2021 were immaterial to our consolidated statements of operations. 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 wastewater 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 January 2023, MCBC USA received a Notice of Violation / Cease and Desist Order ("Order") from the Colorado Department of Public Health & Environment’s Water Quality Control Division, alleging certain violations of the Colorado Water Quality Control Act (the “Act”) and the Colorado Discharge Permit related to our Company’s brewery and facilities in Golden, Colorado. The Order alleged MCBC USA failed to comply with permit effluent limitations, failed to properly monitor and report sampling results and failed to adhere to the permit compliance schedule. 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, 2023 are approximately $5 million and $6 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 2023 capital expenditures, results of operations or our financial or competitive position, and we do not currently anticipate that they will do so in 2024. |
Stockholders' Equity
Stockholders' Equity | 12 Months Ended |
Dec. 31, 2023 | |
Equity [Abstract] | |
Stockholders' Equity | Stockholders' Equity Changes to the number of shares of capital stock outstanding were as follows: Common stock Exchangeable Class A Class B Class A Class B (Share amounts in millions) Balance as of December 31, 2020 2.6 200.3 2.7 11.1 Shares issued under equity compensation plans — 0.3 — — Balance as of December 31, 2021 2.6 200.6 2.7 11.1 Shares issued under equity compensation plans — 0.3 — — Purchase of treasury shares — (1.0) — — Shares exchanged for common stock — 0.1 — (0.1) Balance as of December 31, 2022 2.6 200.0 2.7 11.0 Shares issued under equity compensation plans — 0.4 — — Purchase of treasury shares — (3.4) — — Shares exchanged for common stock — 1.6 — (1.6) Balance as of December 31, 2023 2.6 198.6 2.7 9.4 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 Inc. 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 The Certificate provides for the right of holders of Class A common stock to convert their stock into Class B common stock on a one-for-one basis at any time. The exchangeable shares are exchangeable at any time, at the option of the holder on a one-for-one basis for corresponding shares of Molson Coors common stock. Therefore, a portion of our authorized and unissued Class A and Class B common shares are reserved to meet exchange requirements. Share Repurchase Program On September 29, 2023, our Board approved a new share repurchase program authorizing the repurchase of up to an aggregate of $2.0 billion of our Company's Class B common stock excluding brokerage commissions and excise taxes, with an expected program term of five years. This repurchase program replaces and supersedes any repurchase program previously approved by our Board, including the program approved during the first quarter of 2022. The number, price, structure and timing of the repurchases under the program, if any, will be at our sole discretion and future repurchases will be evaluated by us depending on market conditions, liquidity needs, restrictions under our debt arrangements and other factors. Share repurchases may be made in the open market, in structured transactions, or in privately negotiated transactions. The repurchase authorization does not oblige us to acquire any particular amount of our Company's Class B common stock. The Board may suspend, modify or terminate the repurchase program at any time without prior notice. During the year ended December 31, 2023, we repurchased 3,454,694 shares under the share repurchase program at a weighted average price of $61.06 per share, including brokerage commissions and excluding excise taxes, for an aggregate value of $211.0 million. During the year ended December 31, 2022, we repurchased 995,000 shares under the share repurchase program approved in 2022 at a weighted average price of $51.70 per share, including brokerage commissions, for an aggregate value of $51.5 million. As of December 31, 2023, approximately $1.8 billion remained available for repurchase under the $2.0 billion program. |
Accumulated Other Comprehensive
Accumulated Other Comprehensive Income (Loss) | 12 Months Ended |
Dec. 31, 2023 | |
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, 2020 $ (539.5) $ (173.9) $ (397.7) $ (56.7) $ (1,167.8) Foreign currency translation adjustments (85.6) — (1.2) — (86.8) Cumulative translation adjustment reclassified from other comprehensive income (loss) (1) 7.5 — — — 7.5 Gain (loss) recognized on net investment hedges 76.5 — — — 76.5 Unrealized gain (loss) recognized on derivative instruments — 51.1 — — 51.1 Derivative instrument activity reclassified from other comprehensive income (loss) — 7.5 — — 7.5 Net change in pension and other postretirement benefit assets and liabilities recognized in other comprehensive income (loss) — — 158.6 — 158.6 Pension and other postretirement activity reclassified from other comprehensive 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) Cumulative translation adjustment reclassified from other comprehensive income (loss) (1) 12.1 — — — 12.1 Gain (loss) recognized on net investment hedges 53.2 — — — 53.2 Unrealized gain (loss) recognized on derivative instruments — 209.7 — — 209.7 Derivative instrument activity reclassified from other comprehensive income (loss) — 12.9 — — 12.9 Net change in pension and other postretirement benefit assets and liabilities recognized in other comprehensive income (loss) — — (78.2) — (78.2) Pension and other postretirement activity reclassified from other comprehensive 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) Foreign currency translation adjustments 113.5 — — — 113.5 Cumulative translation adjustment reclassified from other comprehensive income (loss) (2) (0.7) — — — (0.7) Gain (loss) recognized on net investment hedges (26.5) — — — (26.5) Unrealized gain (loss) recognized on derivative instruments — (3.6) — — (3.6) Derivative instrument activity reclassified from other comprehensive income (loss) — 1.3 — — 1.3 Net change in pension and other postretirement benefit assets and liabilities recognized in other comprehensive income (loss) — — (8.5) — (8.5) Pension and other postretirement activity reclassified from other comprehensive income (loss) — — (15.0) — (15.0) Ownership share of unconsolidated subsidiaries' other comprehensive income (loss) — — — 15.4 15.4 Tax benefit (expense) 10.9 0.7 5.9 (4.2) 13.3 As of December 31, 2023 $ (778.0) $ 30.6 $ (352.7) $ (16.2) $ (1,116.3) (1) As a result of the sale of a disposal group within our India business for the year ended December 31, 2021, and the completion of the sale of our non-operating India entity during the year ended December 31, 2022, the associated respective cumulative foreign currency translation adjustments were reclassified from AOCI and recognized within other operating income (expense), net. (2) As a result of the sale of our interest in Truss, the associated cumulative foreign currency translation adjustment was reclassified from AOCI. The impact of the cumulative foreign currency translation adjustment was recorded in other operating income (expense), net, as a component of the loss on sale when the entity was disposed during the third quarter of 2023. We have significant levels of net assets denominated in currencies other than 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 gains during 2023 were primarily due to the strengthening of the CAD, GBP, EUR and certain other currencies of our Europe operations versus the 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. Reclassifications from AOCI For the years ended December 31, 2023 December 31, 2022 December 31, 2021 Reclassifications from AOCI Locations of Reclassifications (In millions) Gain/(loss) on cash flow hedges Forward starting interest rate swaps $ (5.2) $ (14.3) $ (4.8) Interest expense, net Foreign currency forwards 4.9 1.8 (3.5) Cost of goods sold Foreign currency forwards (1.0) (0.4) 0.8 Other non-operating income (expense), net Total income (loss) reclassified, before tax (1.3) (12.9) (7.5) Income tax benefit (expense) 0.4 3.5 2.0 Net income (loss) reclassified, net of tax $ (0.9) $ (9.4) $ (5.5) Amortization of defined benefit pension and other postretirement benefit plan items Prior service benefit (cost) $ 0.4 $ 0.4 $ 0.3 Other pension and postretirement benefits (costs), net Net actuarial gain (loss) and settlement 14.6 1.7 (7.4) Other pension and postretirement benefits (costs), net Total income (loss) reclassified, before tax 15.0 2.1 (7.1) Income tax benefit (expense) (3.8) (0.5) 1.7 Net income (loss) reclassified, net of tax $ 11.2 $ 1.6 $ (5.4) Other reclassifications from AOCI Cumulative translation adjustment resulting from sale of disposal groups $ 0.7 $ (12.1) $ (7.5) Other operating income (expense), net Net income (loss) reclassified, net of tax $ 0.7 $ (12.1) $ (7.5) Total income (loss) reclassified, net of tax $ 11.0 $ (19.9) $ (18.4) |
Share-Based Payments
Share-Based Payments | 12 Months Ended |
Dec. 31, 2023 | |
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, 2023 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 grant and generally vest over a period of three years. During the years ended December 31, 2023, 2022 and 2021, we granted 0.5 million, 0.5 million and 0.6 million RSUs, respectively, with a weighted-average market value of $54.97, $52.05 and $45.84 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. During the years ended December 31, 2023, 2022 and 2021, we granted a small number of DSUs. 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 grant for the 2023 and 2022 awards and a Monte Carlo model for all previous awards, varying based on a multiplier tied to projected performance metric attainment. During the years ended December 31, 2023, 2022 and 2021, we granted 0.3 million, 0.3 million and 0.4 million PSUs, respectively, each with a weighted-average fair value of $62.31, $62.98 and $45.71, 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 the years ended December 31, 2023, 2022 and 2021, we granted 0.2 million, 0.3 million and 0.3 million options, respectively, each with a weighted-average fair value of $13.38, $12.16 and $10.06, respectively. Certain RSU and PSU awards, granted starting in 2020, 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, 2023 December 31, 2022 December 31, 2021 (In millions) Pre-tax share-based compensation expense $ 44.9 $ 33.6 $ 32.1 Tax benefit (7.8) (5.9) (5.5) After-tax share-based compensation expense $ 37.1 $ 27.7 $ 26.6 As of December 31, 2023, there was $54.0 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. The following table presents the activity for RSUs, DSUs and PSUs. 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, 2022 1.3 $49.07 0.9 $53.54 Granted 0.5 $54.98 0.3 $62.31 Vested (0.4) $49.29 — $— Forfeited (0.1) $49.06 (0.1) $56.29 Adjustment for performance results achieved — $— (0.2) $52.60 Non-vested as of December 31, 2023 1.3 $51.26 0.9 $56.75 The total intrinsic values of RSUs and DSUs vested during the years ended December 31, 2023, 2022 and 2021 were $22.0 million, $17.2 million and $12.7 million, respectively. The following table presents the activity for stock options. Stock options Awards Weighted- Weighted- Aggregate (In millions, except per share amounts and years) Outstanding as of December 31, 2022 1.5 $57.14 6.6 $ 2.1 Granted 0.3 $53.75 Exercised (0.2) $50.37 Forfeited (0.1) $51.62 Outstanding as of December 31, 2023 1.5 $57.25 6.1 $ 11.7 Expected to vest as of December 31, 2023 0.5 $51.61 8.4 $ 4.7 Exercisable as of December 31, 2023 1.0 $59.87 5.0 $ 7.0 The total intrinsic values of exercises during the years ended December 31, 2023, 2022 and 2021 were $2.2 million, $0.7 million and $0.9 million, respectively. Total tax benefits realized, including excess tax benefits, from share-based awards vested or exercised during the years ended December 31, 2023, 2022 and 2021 was $5.2 million, $2.9 million and $2.0 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, 2023, there were 4.3 million shares of MCBC Class B common stock available for issuance under the Incentive Compensation Plan. The fair value of each stock option granted during the years ended December 31, 2023, 2022 and 2021 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, 2023 December 31, 2022 December 31, 2021 Risk-free interest rate 4.05% 1.88% 0.79% Dividend yield 3.04% 2.86% 3.11% Volatility range 22.62% - 32.04% 30.91% - 33.85% 30.84% - 42.44% Weighted-average volatility 29.69% 31.65% 33.74% Expected term (years) 5.6 5.7 5.6 Weighted-average fair value $13.38 $12.16 $10.06 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 during the years ended December 31, 2023, 2022 and 2021 and the performance metric for each PSU granted during the year ended December 31, 2021 were 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, 2023 December 31, 2022 December 31, 2021 Risk-free interest rate 4.42% 1.58% 0.24% Volatility range 17.19% - 35.87% 22.65% - 45.30% 23.00% - 44.71% Weighted-average volatility 32.58% 35.93% 35.46% Expected term (years) 2.8 2.8 2.8 Weighted-average fair market value $62.31 $62.98 $45.71 The risk-free interest rates utilized for periods throughout the expected term of the PSUs are based on a zero-coupon U.S. Department of Treasury security yield at the time of grant. Expected volatility is based on historical volatility of our stock as well as the stock of our peer firms, as shown within the volatility range above, for a period from the grant date consistent with the expected term. The expected term of PSUs is calculated based on the grant date to the end of the performance period. No dividend yield is utilized in the model as participants are entitled to dividends earned during the vesting period of each respective award. |
Other Operating Income (Expense
Other Operating Income (Expense), net | 12 Months Ended |
Dec. 31, 2023 | |
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. For the years ended December 31, 2023 December 31, 2022 December 31, 2021 (In millions) Restructuring Employee-related charges $ (4.1) $ (6.0) $ (11.7) Asset abandonment and other restructuring costs (1) — (3.1) (25.9) Intangible and tangible asset impairments, excluding goodwill (2) (160.8) (36.3) (13.5) Gains and (losses) on disposals and other (3) 2.2 6.8 6.6 Other operating income (expense), net $ (162.7) $ (38.6) $ (44.5) (1) 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 years ended December 31, 2023 and December 31, 2022 and $15.4 million recorded to other operating income (expense), net for the year ended December 31, 2021. During the year ended December 31, 2021, we incurred accelerated depreciation related to the Montreal brewery closure and our Burtonwood and Japan locations. (2) During the year ended December 31, 2023, we recognized a partial impairment charge of $160.7 million to our indefinite-lived intangible asset related to the Staropramen family of brands within our EMEA&APAC segment. The indefinite-lived intangible asset was measured at fair value primarily using a market approach with Level 3 inputs. During the year ended December 31, 2022, we identified a triggering event related to the former 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. (3) During the third quarter of 2023, we sold our controlling interest in Truss and recognized a loss of $11.1 million. See Note 3, "Investments" for further details. |
Segment Reporting
Segment Reporting | 12 Months Ended |
Dec. 31, 2023 | |
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. Unallocated "Unallocated" activity primarily includes financing-related costs such as interest expense and income, foreign exchange gains and losses on intercompany balances, realized and unrealized changes in fair value on instruments not designated in hedging relationships 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 for the years ended December 31, 2023, 2022 or 2021. 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 present 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, 2023 Americas EMEA&APAC Unallocated Inter-segment net sales eliminations Consolidated (In millions) Net sales $ 9,425.2 $ 2,296.1 $ — $ (19.2) $ 11,702.1 Equity income (loss) 12.0 — — — 12.0 Interest expense (1.4) (4.6) (228.0) — (234.0) Interest income 0.7 0.7 24.0 — 25.4 Income (loss) before income taxes $ 1,566.7 $ (41.1) $ (273.1) $ — $ 1,252.5 Income tax benefit (expense) (296.1) Net income (loss) 956.4 Net (income) loss attributable to noncontrolling interests (7.5) Net income (loss) attributable to MCBC $ 948.9 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 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, 2023 2022 2023 2022 2021 2023 2022 2021 (In millions) Americas $ 22,753.8 $ 22,242.7 $ 514.4 $ 526.9 $ 601.4 $ 525.8 $ 483.5 $ 405.0 EMEA&APAC 3,621.3 3,625.6 168.4 157.9 184.7 145.7 177.9 117.6 Consolidated $ 26,375.1 $ 25,868.3 $ 682.8 $ 684.8 $ 786.1 $ 671.5 $ 661.4 $ 522.6 The following table presents net sales by geography, based on the location of the customer. For the years ended December 31, 2023 December 31, 2022 December 31, 2021 (In millions) Net sales to unaffiliated customers United States and its territories $ 8,059.6 $ 7,405.6 $ 7,168.7 Canada 1,224.0 1,165.3 1,188.4 United Kingdom 1,313.7 1,166.3 959.1 Other countries (1) 1,104.8 963.8 963.5 Consolidated net sales $ 11,702.1 $ 10,701.0 $ 10,279.7 (1) Reflects net sales within certain countries in Europe, Latin America, South America, the Middle East, Africa and Asia. No individual country within the other countries line has total net sales exceeding 10% of total consolidated net sales. The following table presents property, plant and equipment, net and operating ROU assets by geographic location. See Note 8, "Leases" for further information on our operating ROU assets and Note 5, "Property, Plant and Equipment" for further information on our net property, plant and equipment. As of December 31, 2023 December 31, 2022 (In millions) Property, plant and equipment, net and operating ROU assets United States and its territories $ 2,720.2 $ 2,444.6 Canada 1,002.9 1,050.6 United Kingdom 414.1 365.4 Other countries (1) 508.0 494.9 Consolidated property, plant and equipment, net and operating ROU assets $ 4,645.2 $ 4,355.5 (1) Reflects property, plant and equipment, net and operating ROU assets within certain countries in Europe, Latin America, South America, Africa and Asia. No individual country within the other countries line has total property, plant and equipment, net or operating ROU assets exceeding 10% of total consolidated property, plant and equipment, net or operating ROU assets, respectively. |
SCHEDULE II
SCHEDULE II | 12 Months Ended |
Dec. 31, 2023 | |
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 Deferred tax valuation allowance Year ended: December 31, 2023 $ 57.2 $ 13.2 $ (10.2) $ 1.7 $ 61.9 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 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. |
Pay vs Performance Disclosure
Pay vs Performance Disclosure - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Pay vs Performance Disclosure | |||
Net Income (Loss) | $ 948.9 | $ (175.3) | $ 1,005.7 |
Insider Trading Arrangements
Insider Trading Arrangements | 3 Months Ended |
Dec. 31, 2023 | |
Trading Arrangements, by Individual | |
Rule 10b5-1 Arrangement Adopted | false |
Non-Rule 10b5-1 Arrangement Adopted | false |
Rule 10b5-1 Arrangement Terminated | false |
Non-Rule 10b5-1 Arrangement Terminated | false |
Basis of Presentation and Sum_2
Basis of Presentation and Summary of Significant Accounting Policies (Policies) | 12 Months Ended |
Dec. 31, 2023 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Principles of Consolidation | Principles of 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. |
Government Assistance | Government Assistance |
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 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 factors including 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, 2023, 2022 and 2021, 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. During the years ended December 31, 2023, 2022 and 2021 no arrangements were individually material nor material in the aggregate. 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, 2023 or December 31, 2022. Separately, trade receivables, net including affiliate receivables, approximates receivables from contracts with customers. Shipping and Handling |
Excise Taxes | Excise Taxes |
Cost of Goods Sold | Cost of Goods Sold |
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. The creative portion of our advertising activities is expensed as incurred. Production costs of advertising and promotional materials are recorded as a prepaid asset and expensed when the advertising is first run. Included in MG&A is total marketing and advertising expenses which were approximately $1.1 billion, $1.0 billion and $1.1 billion for the years ended December 31, 2023, 2022 and 2021, 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 compensation, benefits 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 compensation, benefits and other overheads, including travel and entertainment expenses. This line item additionally includes amortization costs associated with definite-lived 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 | Other Operating Income (Expense), net Our other operating income (expense), net 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 certain 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), 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 OCI, when we meet the criteria prescribed by U.S. GAAP. |
Other Comprehensive Income (Loss) | Other Comprehensive Income (Loss) |
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 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.. See Note 3, "Investments" for further discussion. We also had other non-cash activities related to capital expenditures incurred but not yet paid of $254.9 million, $234.3 million and $206.6 million during the years ended December 31, 2023, 2022 and 2021, 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. During the first quarter of 2022, we recorded a non-cash transaction related to the establishment of an accrued liability of $56.0 million as the best estimate of the probable loss in the Keystone litigation case based on the jury verdict. During the years ended December 31, 2023 and 2022, we recorded non-cash transactions of $1.9 million and $0.6 million, respectively, in accrued interest associated with this accrued liability. See Note 13, "Commitments and Contingencies" for further details. |
Dividends | Dividends On November 9, 2023, the Board declared a cash dividend of $0.41 per share, paid on December 15, 2023, to shareholders of Class A and Class B common stock of record on December 1, 2023. Shareholders of exchangeable shares received the CAD equivalent of dividends declared on Class A and Class B common stock, equal to CAD 0.56 per share. During the year ended December 31, 2023, dividends declared to eligible shareholders totaled $1.64 per share, with the CAD equivalent totaling CAD 2.19 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. |
Trade Receivables | Trade Receivables |
Inventories | Inventories Inventories 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 probable the product will not be sold within our freshness specifications. In addition, we reserve for those inventories associated with discontinued SKUs or seasonal or other packaging material changes. |
Other current assets | Other Current Assets |
Property, Plant and Equipment | Property, Plant and Equipment Property, plant and equipment is 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, plant and equipment 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. 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 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 property, plant and equipment. Software maintenance and training costs are expensed in the period incurred. Property, plant and equipment held under finance lease are depreciated using the straight-line method over the estimated useful life or the lease term, whichever is shorter. 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 depreciated over the useful life that would be assigned if the asset were owned. |
Cloud Computing Arrangements | Cloud Computing Arrangements |
Goodwill and Other Intangible Assets | Goodwill and Other Intangible Assets 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 |
Equity Method Investments | Equity Method Investments |
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. Consistent with our policy, 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. 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 sheets 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. 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. BRI and BDL, two of our equity method investments, 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. 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 and remains effective through December 31, 2024. The guidance permits a company to elect certain optional expedients and exceptions when affected by the changes in reference rate reform. We have adopted this guidance and elected to apply certain optional expedients related to our derivative instruments with maturity dates extending beyond the discontinuance date of LIBOR. Specifically, in May 2023, we amended our 2026 forward starting interest rate swaps to replace LIBOR with SOFR and applied the optional expedients to account for the transition. None of the changes made as a result of reference rate reform had a material impact on our financial statements. 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. We adopted this guidance, with the exception of the rollforward disclosure requirement, starting with our quarterly report for the three months ended March 31, 2023. See Note 1, "Basis of Presentation and Summary of Significant Accounting Policies" for additional information on our supplier finance programs. 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. New Accounting Pronouncements Not Yet Adopted In December 2023, the FASB issued authoritative guidance intended to enhance transparency and decision usefulness of income tax disclosures. The amendments are focused on two specific disclosure areas: the rate reconciliation and income taxes paid. More disaggregated income tax information, particularly at an individual jurisdiction level (country, state or local territory), is required in both disclosures if certain quantitative thresholds are met. The amendments to the rate reconciliation require the use of specific categories, with disclosure of percentages and reporting currency amounts. If not already evident, further explanation of the nature, effect and underlying causes of the reconciling items must be included. The amendments to the income taxes paid disclosure require reporting of net income taxes paid disaggregated by federal (national), state and foreign. This guidance is effective for us starting with our annual report for the year ending December 31, 2025 and the guidance should be applied prospectively. We are permitted to early adopt and can choose to apply the guidance retrospectively. When adopted, we expect the guidance to have an impact on disclosures only and to not have a material effect on our financial position or results of operations. In November 2023, the FASB issued authoritative guidance intended to improve reportable segment disclosures and to enhance disclosures about significant reportable segment expenses. The amendments require additional disclosures for both annual and interim periods including disclosures of significant segment expenses that are regularly provided to the chief operating decision maker ("CODM") and included within each reported measure of segment profit or loss as well as other segment items by reportable segment, among other disclosures. This guidance is effective for us starting with our annual report for the year ending December 31, 2024 and the subsequent interim periods and is required to be applied retrospectively to all prior periods presented. Because the amendments do not change the methodology for the identification of operating segments, the aggregation of those operating segments or the application of the quantitative thresholds to determine reportable segments, we do not expect the guidance to have a material effect on our financial position or results of operations. Other than the items noted above, there have been no new accounting pronouncements not yet effective or adopted in the current year that we believe have a significant impact, or potential significant impact, to our consolidated financial statements. |
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. |
Basis of Presentation and Sum_3
Basis of Presentation and Summary of Significant Accounting Policies (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Summary of Capitalized Cloud Computing Implementation Costs | The following table presents the gross and net value of capitalized cloud computing implementation costs associated with active hosting arrangements. As of December 31, 2023 December 31, 2022 (In millions) Cloud computing implementation costs $ 56.5 $ 38.5 Less: accumulated amortization (20.8) (12.9) Cloud computing implementation costs, net $ 35.7 $ 25.6 |
Investments (Tables)
Investments (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Equity Method Investments and Joint Ventures [Abstract] | |
Summary of Transactions with Affiliates | Amounts due from and due to affiliates as of December 31, 2023 and December 31, 2022, respectively, are as follows: Amounts due from affiliates Amounts due to affiliates December 31, 2023 December 31, 2022 December 31, 2023 December 31, 2022 (In millions) BRI $ — $ 4.7 $ 1.6 $ (0.3) BDL 3.2 0.2 — — Other 4.2 5.4 5.2 1.3 Total $ 7.4 $ 10.3 $ 6.8 $ 1.0 |
Schedules of Consolidated Investments | The following summarizes the assets and liabilities of our consolidated VIEs (including noncontrolling interests): As of December 31, 2023 December 31, 2022 Total Assets Total Liabilities Total Assets Total Liabilities (In millions) RMMC/RMBC $ 261.6 $ 24.7 $ 228.2 $ 21.2 Other $ 2.8 $ 3.3 $ 43.3 $ 16.1 |
Inventories (Tables)
Inventories (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Inventory Disclosure [Abstract] | |
Schedule of Inventory | As of December 31, 2023 December 31, 2022 (In millions) Finished goods $ 245.7 $ 269.1 Work in process 97.4 71.9 Raw materials 275.1 290.4 Packaging materials 184.1 161.5 Inventories, net $ 802.3 $ 792.9 |
Property, Plant, and Equipment
Property, Plant, and Equipment (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Property, Plant and Equipment [Abstract] | |
Schedule of Property, Plant and Equipment | As of December 31, 2023 December 31, 2022 (In millions) Land and improvements $ 365.1 $ 355.9 Buildings and improvements 1,283.4 1,205.5 Production and office equipment 5,156.0 4,897.3 Software 543.8 533.3 Construction in progress 783.7 497.4 Other 414.1 395.3 Total property, plant and equipment cost 8,546.1 7,884.7 Less: accumulated depreciation (4,101.6) (3,661.9) Property, plant and equipment, net $ 4,444.5 $ 4,222.8 |
Goodwill and Intangible Assets
Goodwill and Intangible Assets (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule of changes in goodwill | The changes in the carrying value of goodwill is presented in the table below by segment. Americas EMEA&APAC Consolidated (1) (In millions) 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) Balance as of December 31, 2022 $ 5,291.9 $ — $ 5,291.9 Acquisition (2) 29.2 — 29.2 Foreign currency translation, net 4.2 — 4.2 Balance as of December 31, 2023 $ 5,325.3 $ — $ 5,325.3 (1) Accumulated impairment losses for the Americas segment was $1,513.3 million as of December 31, 2023 and December 31, 2022. The EMEA&APAC goodwill balance was fully impaired during the year ended December 31, 2020 with an accumulated impairment loss of $1,484.3 million. (2) Goodwill acquired in our Americas segment was related to the Blue Run acquisition further discussed in Note 1, "Basis of Presentation and Summary of Significant Accounting Policies" . The goodwill acquired is not deductible for tax purposes. |
Schedule of finite-lived intangible assets | The following table presents details of our intangible assets, other than goodwill, as of December 31, 2023: Useful life Gross Accumulated Net (Years) (In millions) Intangible assets subject to amortization Brands 10 - 50 $ 5,029.2 $ (1,634.4) $ 3,394.8 License agreements and distribution rights 10 - 20 204.9 (117.6) 87.3 Other 5 - 40 84.8 (25.8) 59.0 Intangible assets not subject to amortization Brands Indefinite 8,002.0 — 8,002.0 Distribution networks Indefinite 763.9 — 763.9 Other Indefinite 307.6 — 307.6 Total $ 14,392.4 $ (1,777.8) $ 12,614.6 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 |
Schedule of indefinite-Lived intangible assets | The following table presents details of our intangible assets, other than goodwill, as of December 31, 2023: Useful life Gross Accumulated Net (Years) (In millions) Intangible assets subject to amortization Brands 10 - 50 $ 5,029.2 $ (1,634.4) $ 3,394.8 License agreements and distribution rights 10 - 20 204.9 (117.6) 87.3 Other 5 - 40 84.8 (25.8) 59.0 Intangible assets not subject to amortization Brands Indefinite 8,002.0 — 8,002.0 Distribution networks Indefinite 763.9 — 763.9 Other Indefinite 307.6 — 307.6 Total $ 14,392.4 $ (1,777.8) $ 12,614.6 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 |
Schedule of estimated amortization expense related to intangible assets | Based on foreign exchange rates as of December 31, 2023, the estimated future amortization expense of intangible assets for the next five years is as follows: Year Amount (In millions) 2024 $ 210.8 2025 $ 210.8 2026 $ 192.3 2027 $ 127.8 2028 $ 126.2 |
Accounts Payable and Other Cu_2
Accounts Payable and Other Current Liabilities (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Payables and Accruals [Abstract] | |
Accrued Expenses and Other Liabilities | As of December 31, 2023 December 31, 2022 (In millions) Accounts payable and accrued trade payables $ 2,149.8 $ 2,068.2 Accrued compensation 316.8 249.2 Accrued excise and other non-income related taxes 255.1 239.9 Accrued interest 82.8 87.6 Returnable container deposit liabilities 113.2 116.8 Operating lease liabilities 46.9 44.7 Other (1) 216.2 171.9 Accounts payable and other current liabilities $ 3,180.8 $ 2,978.3 (1) |
Leases (Tables)
Leases (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Leases [Abstract] | |
Components of Lease Expense | For the years ended December 31, 2023, December 31, 2022 and December 31, 2021, lease expense (including immaterial short-term and variable lease costs) was as follows. For the years ended December 31, 2023 December 31, 2022 December 31, 2021 (In millions) Operating lease expense $ 81.3 $ 72.5 $ 73.2 Finance lease expense 9.5 9.5 10.4 Total lease expense $ 90.8 $ 82.0 $ 83.6 |
Supplemental Cash Flow Information | Supplemental cash flow information related to leases for the years ended December 31, 2023, December 31, 2022 and December 31, 2021 was as follows. For the years ended December 31, 2023 December 31, 2022 December 31, 2021 (In millions) Cash paid for amounts included in the measurements of lease liabilities Operating cash flows for operating leases $ 58.7 $ 52.5 $ 56.8 Operating cash flows for finance leases $ 3.3 $ 3.6 $ 4.5 Financing cash flows for finance leases $ 5.1 $ 4.4 $ 3.6 Supplemental non-cash information on right-of-use assets obtained in exchange for new lease liabilities Operating leases $ 115.7 $ 63.9 $ 34.0 Finance leases $ 1.7 $ 3.8 $ 7.5 |
Supplemental Balance Sheet Information | Supplemental balance sheet information related to leases as of December 31, 2023 and December 31, 2022 was as follows: As of December 31, 2023 December 31, 2022 Balance Sheet Classification (In millions) Operating Leases Operating lease right-of-use assets Other assets $ 200.7 $ 132.7 Current operating lease liabilities Accounts payable and other current liabilities $ 46.9 $ 44.7 Non-current operating lease liabilities Other liabilities 163.9 99.3 Total operating lease liabilities $ 210.8 $ 144.0 Finance Leases Finance lease right-of-use assets Property, plant and equipment, net $ 46.4 $ 50.2 Current finance lease liabilities Current portion of long-term debt and short-term borrowings $ 5.2 $ 5.3 Non-current finance lease liabilities Long-term debt 48.5 56.2 Total finance lease liabilities $ 53.7 $ 61.5 The weighted-average remaining lease term and discount rate as of December 31, 2023 were as follows: Weighted-Average Remaining Lease Term (Years) Weighted-Average Discount Rate Operating leases 7.5 5.1% Finance leases 9.6 6.4% |
Maturities of Finance Lease Liabilities | Based on foreign exchange rates as of December 31, 2023, maturities of lease liabilities were as follows: Operating Leases Finance Leases (In millions) 2024 $ 53.6 $ 8.5 2025 46.4 8.1 2026 37.1 11.5 2027 24.6 5.0 2028 18.7 4.7 Thereafter 90.3 36.5 Total lease payments $ 270.7 $ 74.3 Less: interest (59.9) (20.6) Present value of lease liabilities $ 210.8 $ 53.7 |
Maturities of Operating Lease Liabilities | Based on foreign exchange rates as of December 31, 2023, maturities of lease liabilities were as follows: Operating Leases Finance Leases (In millions) 2024 $ 53.6 $ 8.5 2025 46.4 8.1 2026 37.1 11.5 2027 24.6 5.0 2028 18.7 4.7 Thereafter 90.3 36.5 Total lease payments $ 270.7 $ 74.3 Less: interest (59.9) (20.6) Present value of lease liabilities $ 210.8 $ 53.7 |
Debt (Tables)
Debt (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Debt Disclosure [Abstract] | |
Schedule of Debt Obligations | Debt Obligations As of December 31, 2023 December 31, 2022 (In millions) Long-term debt CAD 500 million 2.84% notes due July 2023 (1)(2)(3) — 368.9 EUR 800 million 1.25% notes due July 2024 (1) 883.1 856.4 CAD 500 million 3.44% notes due July 2026 (1)(2) 377.6 368.9 $2.0 billion 3.0% notes due July 2026 (1) 2,000.0 2,000.0 $1.1 billion 5.0% notes due May 2042 (4) 1,100.0 1,100.0 $1.8 billion 4.2% notes due July 2046 (1) 1,800.0 1,800.0 Finance leases 53.7 61.5 Other 23.5 25.4 Less: unamortized debt discounts and debt issuance costs (35.5) (39.7) Total long-term debt (including current portion) 6,202.4 6,541.4 Less: current portion of long-term debt (890.3) (376.2) Total long-term debt $ 5,312.1 $ 6,165.2 Short-term borrowings (5) 21.5 20.9 Current portion of long-term debt 890.3 376.2 Current portion of long-term debt and short-term borrowings $ 911.8 $ 397.1 (1) These senior notes were issued in 2016 in order to partially fund the financing of the MillerCoors Acquisition (USD Notes, EUR Notes and CAD Notes). Total remaining debt issuance costs capitalized in connection with these notes including underwriting fees, discounts and other financing related costs, were $27.2 million as of December 31, 2023 and are being amortized over the respective and remaining terms. (2) We entered into forward starting interest rate swap agreements to hedge interest rate volatility for a 10-year period until the swaps 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 CAD 500 million 3.44% notes maturing July 2026 ("2026 CAD notes"), up to the full 10-year term of the interest rate swaps. The amortizing loss resulted in an increase in our effective cost of borrowing compared to the stated coupon rates by 0.4% on the 2026 CAD notes. See Note 10, "Derivative Instruments and Hedging Activities" for further details on the forward starting interest rate swaps. (3) We repaid our CAD 500 million 2.84% notes upon maturity on July 15, 2023 using cash on hand. (4) On May 3, 2012, we issued approximately $1.9 billion of senior notes with $1.1 billion remaining due in 2042. The total remaining debt issuance costs capitalized in connection with these notes, including the underwriting fees and discounts, were $8.3 million as of December 31, 2023 and are being amortized over the remaining term of the 2042 notes. (5) Our short-term borrowings include bank overdrafts, borrowings on our overdraft facilities and other items. As of December 31, 2023, we had $16.5 million in bank overdrafts and $75.5 million in bank cash related to our cross-border, cross-currency cash pool for a net positive position of $59.0 million. 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. In addition, we have CAD, GBP and USD overdraft facilities under which we had no outstanding borrowings as of December 31, 2023 or December 31, 2022. 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, 2023, the aggregate principal debt maturities of long-term debt and short-term borrowings, based on foreign exchange rates as of December 31, 2023, were as follows: Year Amount (In millions) 2024 $ 904.6 2025 — 2026 2,377.6 2027 — 2028 — Thereafter 2,900.0 Total $ 6,182.2 |
Schedule of Interest | Interest For the years ended December 31, 2023 December 31, 2022 December 31, 2021 (In millions) Interest incurred $ 243.4 $ 257.4 $ 269.1 Interest capitalized (9.4) (6.8) (8.8) Interest expensed $ 234.0 $ 250.6 $ 260.3 |
Derivative Instruments and He_2
Derivative Instruments and Hedging Activities (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Derivative Assets and Liabilities at Fair Value | The table below summarizes our derivative assets and (liabilities) that were measured at fair value as of December 31, 2023 and December 31, 2022. 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 for all derivative contracts as of December 31, 2023 and 2022 were valued using significant other observable inputs, also known as Level 2 inputs. As of December 31, 2023 December 31, 2022 (In millions) Forward starting interest rate swaps $ 41.6 40.0 Foreign currency forwards (1.4) 7.6 Commodity swaps and options (30.4) 69.0 Total $ 9.8 $ 116.6 |
Fair Value of Derivative Instruments in the Condensed Consolidated Balance Sheets | The following tables include the year-to-date results of our derivative activity in our consolidated balance sheets as of December 31, 2023 and December 31, 2022, and our consolidated statements of operations for the years ended December 31, 2023, December 31, 2022 and December 31, 2021. Fair Value of Derivative Instruments in the Consolidated Balance Sheets (in millions) December 31, 2023 Asset derivatives Liability derivatives Notional amount Balance sheet location Fair value Balance sheet location Fair value Derivatives designated as hedging instruments: Forward starting interest rate swaps $ 1,000.0 Other non-current assets $ 41.6 Other liabilities $ — Foreign currency forwards $ 219.4 Other current assets 1.1 Accounts payable and other current liabilities (1.2) Other non-current assets — Other liabilities (1.3) Total derivatives designated as hedging instruments $ 42.7 $ (2.5) Derivatives not designated as hedging instruments: Commodity swaps (1) $ 653.5 Other current assets $ 11.1 Accounts payable and other current liabilities $ (42.0) Other non-current assets 6.6 Other liabilities (6.1) Commodity options (1) $ 21.7 Other current assets 0.2 Accounts payable and other current liabilities (0.2) Total derivatives not designated as hedging instruments $ 17.9 $ (48.3) December 31, 2022 Asset derivatives Liability derivatives Notional amount Balance sheet location Fair value Balance sheet location Fair value Derivatives designated as hedging instruments: Forward starting 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) (1) |
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, 2023 Forward starting interest rate swaps $ 1.6 Interest income (expense), net $ (5.2) Foreign currency forwards (5.2) Cost of goods sold 4.9 Other non-operating income (expense), net (1.0) Total $ (3.6) $ (1.3) 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) 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, 2023 EUR 800 million notes due 2024 $ (26.5) Other non-operating income (expense), net $ — Total $ (26.5) $ — 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 (1) Represents amounts excluded from the assessment of effectiveness for which the difference between changes in fair value and period amortization is recorded in OCI. |
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, 2023 Commodity swaps Cost of goods sold $ (61.7) Foreign currency swaps Other non-operating income (expense), net 2.7 Total $ (59.0) 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 |
Employee Retirement Plans and_2
Employee Retirement Plans and Postretirement Benefits (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Retirement Benefits [Abstract] | |
Schedule of Net Benefit Costs | Net Periodic Pension and OPEB (Benefit) Cost For the years ended December 31, 2023 December 31, 2022 December 31, 2021 Pension OPEB Consolidated Pension OPEB Consolidated Pension OPEB Consolidated (In millions) Service cost Service cost $ 0.9 $ 3.3 $ 4.2 $ 1.3 $ 5.5 $ 6.8 $ 2.7 $ 6.0 $ 8.7 Other pension and postretirement (benefit) cost, net Interest cost 140.4 22.5 162.9 103.9 16.1 120.0 93.9 14.6 108.5 Expected return on plan assets, net of expenses (157.8) — (157.8) (154.2) — (154.2) (161.6) — (161.6) Amortization of prior service (benefit) cost 0.3 (0.7) (0.4) 0.3 (0.7) (0.4) 0.4 (0.7) (0.3) Amortization of net actuarial (gain) loss 17.1 (31.7) (14.6) 5.6 (10.2) (4.6) 8.7 (6.7) 2.0 Curtailment, settlement or special termination benefit (gain) loss (1) — — — 2.9 — 2.9 5.4 — 5.4 Expected participant contributions (0.3) — (0.3) (0.3) — (0.3) (0.4) — (0.4) Total other pension and postretirement (benefit) cost, net (0.3) (9.9) (10.2) (41.8) 5.2 (36.6) (53.6) 7.2 (46.4) Net periodic pension and OPEB (benefit) cost $ 0.6 $ (6.6) $ (6.0) $ (40.5) $ 10.7 $ (29.8) $ (50.9) $ 13.2 $ (37.7) (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, 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. |
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, 2023 For the year ended December 31, 2022 Pension OPEB Total Pension OPEB Total (In millions) Change in benefit obligation Prior year benefit obligation $ 2,978.0 $ 478.3 $ 3,456.3 $ 5,095.8 $ 648.7 $ 5,744.5 Service cost, net of expected employee contributions 0.6 3.3 3.9 1.0 5.5 6.5 Interest cost 140.4 22.5 162.9 103.9 16.1 120.0 Actual employee contributions 0.3 — 0.3 0.3 — 0.3 Actuarial (gain) loss 38.0 1.3 39.3 (1,181.0) (144.6) (1,325.6) Plan amendments — — — — (0.1) (0.1) Benefits paid (226.2) (37.0) (263.2) (263.8) (38.7) (302.5) Curtailment, settlement and special termination — — — (460.6) 0.2 (460.4) Foreign currency exchange rate change 87.0 2.2 89.2 (317.6) (8.8) (326.4) Benefit obligation at end of year $ 3,018.1 $ 470.6 $ 3,488.7 $ 2,978.0 $ 478.3 $ 3,456.3 Change in plan assets Prior year fair value of assets $ 3,336.8 $ — $ 3,336.8 $ 5,667.5 $ — $ 5,667.5 Actual return on plan assets 188.7 — 188.7 (1,272.9) — (1,272.9) Employer contributions (1.7) 37.0 35.3 (0.5) 38.7 38.2 Actual employee contributions 0.3 — 0.3 0.3 — 0.3 Curtailment, settlement and special termination — — — (460.6) — (460.6) Benefits and plan expenses paid (226.2) (37.0) (263.2) (263.8) (38.7) (302.5) Foreign currency exchange rate change 99.0 — 99.0 (333.2) — (333.2) Fair value of plan assets at end of year $ 3,396.9 $ — $ 3,396.9 $ 3,336.8 $ — $ 3,336.8 Funded status $ 378.8 $ (470.6) $ (91.8) $ 358.8 $ (478.3) $ (119.5) Amounts recognized in the Consolidated Balance Sheets Other non-current assets $ 416.9 $ — $ 416.9 $ 397.2 $ — $ 397.2 Accounts payable and other current liabilities (3.6) (39.3) (42.9) (3.9) (39.5) (43.4) Pension and postretirement benefits (34.5) (431.3) (465.8) (34.5) (438.8) (473.3) Net amounts recognized $ 378.8 $ (470.6) $ (91.8) $ 358.8 $ (478.3) $ (119.5) As of December 31, 2023 December 31, 2022 (In millions) Accumulated benefit obligation $ 38.1 $ 38.4 Projected benefit obligation $ 38.1 $ 38.4 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, 2023 As of December 31, 2022 Pension OPEB Total Pension OPEB Total (In millions) Net actuarial (gain) loss $ 773.3 $ (260.4) $ 512.9 $ 766.4 $ (278.2) $ 488.2 Net prior service (benefit) cost 9.4 (1.7) 7.7 9.7 (0.8) 8.9 Total not yet recognized $ 782.7 $ (262.1) $ 520.6 $ 776.1 $ (279.0) $ 497.1 |
Schedule of Assumptions Used | The weighted-average rates used in determining the periodic pension and OPEB cost for the years ended December 31, 2023, 2022 and 2021 were as follows: For the years ended December 31, 2023 December 31, 2022 December 31, 2021 Pension OPEB Pension OPEB Pension OPEB Weighted-average assumptions: Discount rate 5.01% 4.90% 2.27% 2.59% 1.84% 2.10% Rate of compensation increase 2.00% N/A 2.00% N/A 2.00% N/A Expected return on plan assets 4.91% N/A 3.11% N/A 3.03% 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 N/A Ranging ratably from 6.00% in 2021 to 3.57% in 2040 As of December 31, 2023 As of December 31, 2022 Pension OPEB Pension OPEB Weighted-average assumptions Discount rate 4.74% 4.64% 5.01% 4.90% Rate of compensation increase 2.00% N/A 2.00% N/A Health care cost trend rate N/A Ranging ratably from 6.75% in 2024 to 3.57% in 2040 N/A Ranging ratably from 6.50% in 2023 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, 2023. Target Actual Equities 7.2% 7.8% Fixed income 74.2% 72.2% Real estate 4.7% 4.8% Annuities and longevity swap 13.4% 13.4% Other 0.5% 1.8% |
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, 2023 Total as of December 31, 2023 Quoted prices Significant Significant Cash and cash equivalents Cash $ 39.5 $ 39.5 $ — $ — Trades awaiting settlement — — — — Bank deposits, short-term bills and notes 26.4 — 26.4 — Debt Government debt securities 452.3 — 452.3 — Corporate debt securities 119.3 — 119.3 — Interest and inflation linked assets 629.9 — 616.0 13.9 Collateralized debt securities 0.3 — — 0.3 Annuities and longevity swap Buy-in annuities and longevity swap 449.8 — — 449.8 Other Repurchase agreements (285.8) (285.8) — — Recoverable taxes 0.2 0.2 — — Private equity 10.6 — — 10.6 Total fair value of investments excluding NAV per share practical expedient $ 1,442.5 $ (246.1) $ 1,214.0 $ 474.6 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, 2023 (In millions) Fair value of investments excluding NAV per share practical expedient $ 1,442.5 Fair value of investments using NAV per share practical expedient Debt funds 1,263.9 Equity funds 260.7 Real estate funds 126.3 Private equity funds 37.8 Hedge funds 265.7 Total fair value of plan assets $ 3,396.9 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 fair value hierarchy 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 |
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, 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 Total gain or loss (realized/unrealized) Realized gain (loss) — Unrealized gain (loss) included in AOCI (34.2) Purchases, issuances, settlements (2.7) Foreign exchange translation (loss) gain 24.5 Balance as of December 31, 2023 $ 474.6 |
Schedule of Expected Benefit Payments | Expected future benefit payments for defined benefit pension and OPEB plans for the next ten years, based on foreign exchange rates as of December 31, 2023, are as follows: Expected benefit payments Pension OPEB (In millions) 2024 $ 233.1 $ 39.3 2025 $ 227.9 $ 39.1 2026 $ 229.0 $ 38.8 2027 $ 229.9 $ 38.6 2028 $ 231.0 $ 38.5 2029-2033 $ 1,170.0 $ 186.4 |
Income Tax (Tables)
Income Tax (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
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 was as follows: For the years ended December 31, 2023 December 31, 2022 December 31, 2021 (In millions) Domestic $ 1,486.0 $ 228.4 $ 1,307.5 Foreign (233.5) (290.9) (68.5) Total $ 1,252.5 $ (62.5) $ 1,239.0 |
Current and deferred provisions of income tax expense (benefits) | The components of the provision for income taxes were as follows: For the years ended December 31, 2023 December 31, 2022 December 31, 2021 (In millions) Current Federal $ 200.7 $ 146.1 $ 43.5 State 22.1 22.3 7.1 Foreign 37.3 (17.2) (1.0) Total current tax (benefit) expense $ 260.1 $ 151.2 $ 49.6 Deferred Federal $ 75.0 $ 56.4 $ 163.5 State 27.8 (26.2) 70.4 Foreign (66.8) (57.4) (53.0) Total deferred tax (benefit) expense $ 36.0 $ (27.2) $ 180.9 Total income tax (benefit) expense $ 296.1 $ 124.0 $ 230.5 |
Computation of effective income tax rate | A reconciliation from the U.S. statutory federal income tax rate to the effective income tax rate was as follows: For the years ended December 31, 2023 December 31, 2022 December 31, 2021 ($ in millions) Statutory federal income tax rate 21.0 % $ 263.0 21.0 % $ (13.1) 21.0 % $ 260.2 State income taxes, net of federal benefits 2.4 % 30.6 6.1 % (3.8) 4.7 % 57.8 Effect of foreign tax rates (2.4) % (30.5) 92.6 % (57.9) (5.5) % (68.3) Effect of foreign tax law and rate changes 0.9 % 11.5 (0.8) % 0.5 1.6 % 19.6 Effect of unrecognized tax benefits 0.8 % 9.5 (20.5) % 12.8 (6.2) % (76.3) Change in valuation allowance 0.2 % 2.5 1.1 % (0.7) (0.1) % (1.1) Goodwill impairment — — (287.0) % 179.3 (0.2) % (2.9) Other, net 0.7 % 9.5 (10.9) % 6.9 3.3 % 41.5 Effective tax rate / Tax (benefit) expense 23.6 % $ 296.1 (198.4) % $ 124.0 18.6 % $ 230.5 |
Composition of deferred tax assets and liabilities | As of December 31, 2023 December 31, 2022 (In millions) Deferred tax assets Compensation-related obligations $ 43.2 $ 44.7 Pension and postretirement benefits 23.7 33.7 Tax credit carryforwards 36.0 39.0 Tax loss carryforwards 312.8 291.1 Accrued liabilities and other 202.5 149.0 Valuation allowance (61.9) (57.2) Deferred tax assets $ 556.3 $ 500.3 Deferred tax liabilities Fixed assets 354.9 358.9 Partnerships and investments 38.7 33.2 Intangible assets 2,679.9 2,563.2 Derivative instruments 12.2 31.5 Deferred tax liabilities $ 3,085.7 $ 2,986.8 Net deferred tax liabilities $ 2,529.4 $ 2,486.5 The following table presents our net deferred tax liabilities as of December 31, 2023 and December 31, 2022. As of December 31, 2023 December 31, 2022 (In millions) Domestic deferred tax liabilities $ 2,029.7 $ 1,927.7 Foreign deferred tax assets 123.7 125.8 Foreign deferred tax liabilities 623.4 684.6 Net deferred tax liabilities $ 2,529.4 $ 2,486.5 |
Schedule of unrecognized tax benefits roll forward | A reconciliation of the beginning and ending amounts of un recognized tax benefits, excluding interest and penalties, was as follows: For the years ended December 31, 2023 December 31, 2022 December 31, 2021 (In millions) Balance at beginning of year $ 39.3 $ 28.0 $ 235.7 Additions for tax positions related to the current year 12.9 15.9 28.6 Additions for tax positions of prior years 0.8 1.9 — Reductions for tax positions related to the current year (2.0) — (24.1) Reductions for tax positions of prior years (1.7) — (48.9) Settlements — (3.7) (161.8) Release due to statute expirations (0.7) (1.3) (3.4) Foreign currency adjustment 0.3 (1.5) 1.9 Balance at end of year $ 48.9 $ 39.3 $ 28.0 |
Commitments and Contingencies (
Commitments and Contingencies (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Commitments and Contingencies Disclosure [Abstract] | |
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, 2023. 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) 2024 $ 371.9 $ 150.6 2025 232.0 151.3 2026 208.1 106.4 2027 185.2 80.5 2028 194.2 61.6 Thereafter 182.0 122.7 Total $ 1,373.4 $ 673.1 |
Stockholders' Equity (Tables)
Stockholders' Equity (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Equity [Abstract] | |
Schedule Of Capital Stock | Changes to the number of shares of capital stock outstanding were as follows: Common stock Exchangeable Class A Class B Class A Class B (Share amounts in millions) Balance as of December 31, 2020 2.6 200.3 2.7 11.1 Shares issued under equity compensation plans — 0.3 — — Balance as of December 31, 2021 2.6 200.6 2.7 11.1 Shares issued under equity compensation plans — 0.3 — — Purchase of treasury shares — (1.0) — — Shares exchanged for common stock — 0.1 — (0.1) Balance as of December 31, 2022 2.6 200.0 2.7 11.0 Shares issued under equity compensation plans — 0.4 — — Purchase of treasury shares — (3.4) — — Shares exchanged for common stock — 1.6 — (1.6) Balance as of December 31, 2023 2.6 198.6 2.7 9.4 |
Accumulated Other Comprehensi_2
Accumulated Other Comprehensive Income (Loss) (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
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, 2020 $ (539.5) $ (173.9) $ (397.7) $ (56.7) $ (1,167.8) Foreign currency translation adjustments (85.6) — (1.2) — (86.8) Cumulative translation adjustment reclassified from other comprehensive income (loss) (1) 7.5 — — — 7.5 Gain (loss) recognized on net investment hedges 76.5 — — — 76.5 Unrealized gain (loss) recognized on derivative instruments — 51.1 — — 51.1 Derivative instrument activity reclassified from other comprehensive income (loss) — 7.5 — — 7.5 Net change in pension and other postretirement benefit assets and liabilities recognized in other comprehensive income (loss) — — 158.6 — 158.6 Pension and other postretirement activity reclassified from other comprehensive 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) Cumulative translation adjustment reclassified from other comprehensive income (loss) (1) 12.1 — — — 12.1 Gain (loss) recognized on net investment hedges 53.2 — — — 53.2 Unrealized gain (loss) recognized on derivative instruments — 209.7 — — 209.7 Derivative instrument activity reclassified from other comprehensive income (loss) — 12.9 — — 12.9 Net change in pension and other postretirement benefit assets and liabilities recognized in other comprehensive income (loss) — — (78.2) — (78.2) Pension and other postretirement activity reclassified from other comprehensive 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) Foreign currency translation adjustments 113.5 — — — 113.5 Cumulative translation adjustment reclassified from other comprehensive income (loss) (2) (0.7) — — — (0.7) Gain (loss) recognized on net investment hedges (26.5) — — — (26.5) Unrealized gain (loss) recognized on derivative instruments — (3.6) — — (3.6) Derivative instrument activity reclassified from other comprehensive income (loss) — 1.3 — — 1.3 Net change in pension and other postretirement benefit assets and liabilities recognized in other comprehensive income (loss) — — (8.5) — (8.5) Pension and other postretirement activity reclassified from other comprehensive income (loss) — — (15.0) — (15.0) Ownership share of unconsolidated subsidiaries' other comprehensive income (loss) — — — 15.4 15.4 Tax benefit (expense) 10.9 0.7 5.9 (4.2) 13.3 As of December 31, 2023 $ (778.0) $ 30.6 $ (352.7) $ (16.2) $ (1,116.3) (1) As a result of the sale of a disposal group within our India business for the year ended December 31, 2021, and the completion of the sale of our non-operating India entity during the year ended December 31, 2022, the associated respective cumulative foreign currency translation adjustments were reclassified from AOCI and recognized within other operating income (expense), net. (2) As a result of the sale of our interest in Truss, the associated cumulative foreign currency translation adjustment was reclassified from AOCI. The impact of the cumulative foreign currency translation adjustment was recorded in other operating income (expense), net, as a component of the loss on sale when the entity was disposed during the third quarter of 2023. |
Schedule of Reclassifications from Accumulated Other Comprehensive Income to Income | Reclassifications from AOCI For the years ended December 31, 2023 December 31, 2022 December 31, 2021 Reclassifications from AOCI Locations of Reclassifications (In millions) Gain/(loss) on cash flow hedges Forward starting interest rate swaps $ (5.2) $ (14.3) $ (4.8) Interest expense, net Foreign currency forwards 4.9 1.8 (3.5) Cost of goods sold Foreign currency forwards (1.0) (0.4) 0.8 Other non-operating income (expense), net Total income (loss) reclassified, before tax (1.3) (12.9) (7.5) Income tax benefit (expense) 0.4 3.5 2.0 Net income (loss) reclassified, net of tax $ (0.9) $ (9.4) $ (5.5) Amortization of defined benefit pension and other postretirement benefit plan items Prior service benefit (cost) $ 0.4 $ 0.4 $ 0.3 Other pension and postretirement benefits (costs), net Net actuarial gain (loss) and settlement 14.6 1.7 (7.4) Other pension and postretirement benefits (costs), net Total income (loss) reclassified, before tax 15.0 2.1 (7.1) Income tax benefit (expense) (3.8) (0.5) 1.7 Net income (loss) reclassified, net of tax $ 11.2 $ 1.6 $ (5.4) Other reclassifications from AOCI Cumulative translation adjustment resulting from sale of disposal groups $ 0.7 $ (12.1) $ (7.5) Other operating income (expense), net Net income (loss) reclassified, net of tax $ 0.7 $ (12.1) $ (7.5) Total income (loss) reclassified, net of tax $ 11.0 $ (19.9) $ (18.4) |
Share-Based Payments (Tables)
Share-Based Payments (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
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, 2023 December 31, 2022 December 31, 2021 (In millions) Pre-tax share-based compensation expense $ 44.9 $ 33.6 $ 32.1 Tax benefit (7.8) (5.9) (5.5) After-tax share-based compensation expense $ 37.1 $ 27.7 $ 26.6 |
Schedule of non-vested RSUs, PSUs and DSUs outstanding and the activity for the period | The following table presents the activity for RSUs, DSUs and PSUs. 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, 2022 1.3 $49.07 0.9 $53.54 Granted 0.5 $54.98 0.3 $62.31 Vested (0.4) $49.29 — $— Forfeited (0.1) $49.06 (0.1) $56.29 Adjustment for performance results achieved — $— (0.2) $52.60 Non-vested as of December 31, 2023 1.3 $51.26 0.9 $56.75 |
Schedule of stock options outstanding and the activity for the period | The following table presents the activity for stock options. Stock options Awards Weighted- Weighted- Aggregate (In millions, except per share amounts and years) Outstanding as of December 31, 2022 1.5 $57.14 6.6 $ 2.1 Granted 0.3 $53.75 Exercised (0.2) $50.37 Forfeited (0.1) $51.62 Outstanding as of December 31, 2023 1.5 $57.25 6.1 $ 11.7 Expected to vest as of December 31, 2023 0.5 $51.61 8.4 $ 4.7 Exercisable as of December 31, 2023 1.0 $59.87 5.0 $ 7.0 |
Schedule of share-based compensation weighted-average assumptions | The fair value of each stock option granted during the years ended December 31, 2023, 2022 and 2021 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, 2023 December 31, 2022 December 31, 2021 Risk-free interest rate 4.05% 1.88% 0.79% Dividend yield 3.04% 2.86% 3.11% Volatility range 22.62% - 32.04% 30.91% - 33.85% 30.84% - 42.44% Weighted-average volatility 29.69% 31.65% 33.74% Expected term (years) 5.6 5.7 5.6 Weighted-average fair value $13.38 $12.16 $10.06 |
Schedule of share-based payment award, performance share units, valuation assumptions | The fair values of the market metric for each PSU granted during the years ended December 31, 2023, 2022 and 2021 and the performance metric for each PSU granted during the year ended December 31, 2021 were 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, 2023 December 31, 2022 December 31, 2021 Risk-free interest rate 4.42% 1.58% 0.24% Volatility range 17.19% - 35.87% 22.65% - 45.30% 23.00% - 44.71% Weighted-average volatility 32.58% 35.93% 35.46% Expected term (years) 2.8 2.8 2.8 Weighted-average fair market value $62.31 $62.98 $45.71 |
Other Operating Income (Expen_2
Other Operating Income (Expense), net (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Unusual or Infrequent Items, or Both [Abstract] | |
Special items recorded by segment | For the years ended December 31, 2023 December 31, 2022 December 31, 2021 (In millions) Restructuring Employee-related charges $ (4.1) $ (6.0) $ (11.7) Asset abandonment and other restructuring costs (1) — (3.1) (25.9) Intangible and tangible asset impairments, excluding goodwill (2) (160.8) (36.3) (13.5) Gains and (losses) on disposals and other (3) 2.2 6.8 6.6 Other operating income (expense), net $ (162.7) $ (38.6) $ (44.5) (1) 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 years ended December 31, 2023 and December 31, 2022 and $15.4 million recorded to other operating income (expense), net for the year ended December 31, 2021. During the year ended December 31, 2021, we incurred accelerated depreciation related to the Montreal brewery closure and our Burtonwood and Japan locations. (2) During the year ended December 31, 2023, we recognized a partial impairment charge of $160.7 million to our indefinite-lived intangible asset related to the Staropramen family of brands within our EMEA&APAC segment. The indefinite-lived intangible asset was measured at fair value primarily using a market approach with Level 3 inputs. During the year ended December 31, 2022, we identified a triggering event related to the former 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. (3) During the third quarter of 2023, we sold our controlling interest in Truss and recognized a loss of $11.1 million. See Note 3, "Investments" for further details. |
Segment Reporting (Tables)
Segment Reporting (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Segment Reporting [Abstract] | |
Income (loss) before income taxes by segment | The following tables present 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, 2023 Americas EMEA&APAC Unallocated Inter-segment net sales eliminations Consolidated (In millions) Net sales $ 9,425.2 $ 2,296.1 $ — $ (19.2) $ 11,702.1 Equity income (loss) 12.0 — — — 12.0 Interest expense (1.4) (4.6) (228.0) — (234.0) Interest income 0.7 0.7 24.0 — 25.4 Income (loss) before income taxes $ 1,566.7 $ (41.1) $ (273.1) $ — $ 1,252.5 Income tax benefit (expense) (296.1) Net income (loss) 956.4 Net (income) loss attributable to noncontrolling interests (7.5) Net income (loss) attributable to MCBC $ 948.9 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 |
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, 2023 2022 2023 2022 2021 2023 2022 2021 (In millions) Americas $ 22,753.8 $ 22,242.7 $ 514.4 $ 526.9 $ 601.4 $ 525.8 $ 483.5 $ 405.0 EMEA&APAC 3,621.3 3,625.6 168.4 157.9 184.7 145.7 177.9 117.6 Consolidated $ 26,375.1 $ 25,868.3 $ 682.8 $ 684.8 $ 786.1 $ 671.5 $ 661.4 $ 522.6 |
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, 2023 December 31, 2022 December 31, 2021 (In millions) Net sales to unaffiliated customers United States and its territories $ 8,059.6 $ 7,405.6 $ 7,168.7 Canada 1,224.0 1,165.3 1,188.4 United Kingdom 1,313.7 1,166.3 959.1 Other countries (1) 1,104.8 963.8 963.5 Consolidated net sales $ 11,702.1 $ 10,701.0 $ 10,279.7 (1) Reflects net sales within certain countries in Europe, Latin America, South America, the Middle East, Africa and Asia. No individual country within the other countries line has total net sales exceeding 10% of total consolidated net sales. |
Properties by geographic segment | The following table presents property, plant and equipment, net and operating ROU assets by geographic location. See Note 8, "Leases" for further information on our operating ROU assets and Note 5, "Property, Plant and Equipment" for further information on our net property, plant and equipment. As of December 31, 2023 December 31, 2022 (In millions) Property, plant and equipment, net and operating ROU assets United States and its territories $ 2,720.2 $ 2,444.6 Canada 1,002.9 1,050.6 United Kingdom 414.1 365.4 Other countries (1) 508.0 494.9 Consolidated property, plant and equipment, net and operating ROU assets $ 4,645.2 $ 4,355.5 (1) Reflects property, plant and equipment, net and operating ROU assets within certain countries in Europe, Latin America, South America, Africa and Asia. No individual country within the other countries line has total property, plant and equipment, net or operating ROU assets exceeding 10% of total consolidated property, plant and equipment, net or operating ROU assets, respectively. |
Basis of Presentation and Sum_4
Basis of Presentation and Summary of Significant Accounting Policies - Narrative (Details) $ / shares in Units, shares in Millions | 12 Months Ended | |||||||||||
Feb. 13, 2024 $ / shares | Nov. 09, 2023 $ / shares | Nov. 09, 2023 $ / shares | Aug. 07, 2023 USD ($) | Dec. 31, 2023 USD ($) reportingUnit $ / shares shares | Dec. 31, 2023 USD ($) $ / shares | Dec. 31, 2022 USD ($) $ / shares shares | Dec. 31, 2022 USD ($) $ / shares | Dec. 31, 2021 USD ($) $ / shares shares | Dec. 31, 2021 $ / shares | Mar. 31, 2022 USD ($) | Jun. 30, 2021 USD ($) | |
Unusual or Infrequent Item [Line Items] | ||||||||||||
Outstanding supplier financing obligation | $ 147,500,000 | $ 147,500,000 | $ 135,200,000 | $ 135,200,000 | ||||||||
Supplier Finance Program, Obligation, Statement of Financial Position [Extensible Enumeration] | Accounts payable and other current liabilities | Accounts payable and other current liabilities | Accounts payable and other current liabilities | Accounts payable and other current liabilities | ||||||||
Termination period | 30 days | 30 days | ||||||||||
Amortization period for customer prepayment obligation | 5 years | |||||||||||
Contract liability | $ 0 | $ 0 | $ 0 | $ 0 | ||||||||
Contract asset | 0 | $ 0 | 0 | $ 0 | ||||||||
Advertising expense | $ 1,100,000,000 | $ 1,000,000,000 | $ 1,100,000,000 | |||||||||
Anti-dilutive securities excluded from computation of diluted EPS (in shares) | shares | 0.6 | 3.1 | 1.8 | |||||||||
Dividends paid (in dollars per share) | $ / shares | $ 0.41 | $ 1.52 | $ 0.68 | |||||||||
Exchangeable shares (in CAD per share) | $ / shares | $ 0.56 | $ 2.19 | $ 1.95 | $ 0.84 | ||||||||
Dividends declared (in dollars per share) | $ / shares | $ 1.64 | |||||||||||
Capital expenditures incurred but not yet paid | $ 254,900,000 | $ 234,300,000 | $ 206,600,000 | |||||||||
Allowance for doubtful accounts | $ 12,700,000 | $ 12,700,000 | 13,200,000 | $ 13,200,000 | ||||||||
Period expected for other current asset recognition | 12 months | |||||||||||
Cloud computing arrangement, implementation expense amortization expense | $ 7,900,000 | 6,200,000 | $ 5,200,000 | |||||||||
Number of reporting units (in reporting units) | reportingUnit | 2 | |||||||||||
Impairment, Intangible Asset, Indefinite-Lived (Excluding Goodwill), Statement of Income or Comprehensive Income [Extensible Enumeration] | Other operating income (expense), net | |||||||||||
Longest remaining lease term | 16 years | |||||||||||
Forward starting interest rate swap | ||||||||||||
Unusual or Infrequent Item [Line Items] | ||||||||||||
Derivative terminated | $ 250,000,000 | |||||||||||
Subsequent event | ||||||||||||
Unusual or Infrequent Item [Line Items] | ||||||||||||
Dividends declared (in dollars per share) | $ / shares | $ 0.44 | |||||||||||
Blue Run Spirits, Inc. | ||||||||||||
Unusual or Infrequent Item [Line Items] | ||||||||||||
Equity interest | 75% | |||||||||||
Purchase price | $ 77,000,000 | |||||||||||
Cash paid | 64,000,000 | |||||||||||
Definite-lived brand intangible asset acquired | $ 88,000,000 | |||||||||||
Amortization period | 15 years | |||||||||||
Stone Brewing Company v.s. MCBC | ||||||||||||
Unusual or Infrequent Item [Line Items] | ||||||||||||
Total estimate of indemnity liability | $ 58,500,000 | $ 58,500,000 | 56,600,000 | $ 56,600,000 | $ 56,000,000 | |||||||
Litigation settlement interest | $ 1,900,000 | $ 600,000 | ||||||||||
Returnable bottles | ||||||||||||
Unusual or Infrequent Item [Line Items] | ||||||||||||
Useful economic lives, minimum (in years) | 4 years | 4 years | ||||||||||
Returnable pallets | ||||||||||||
Unusual or Infrequent Item [Line Items] | ||||||||||||
Useful economic lives, minimum (in years) | 5 years | 5 years | ||||||||||
Crates | ||||||||||||
Unusual or Infrequent Item [Line Items] | ||||||||||||
Useful economic lives, minimum (in years) | 7 years | 7 years | ||||||||||
Returnable kegs | ||||||||||||
Unusual or Infrequent Item [Line Items] | ||||||||||||
Useful economic lives, minimum (in years) | 15 years | 15 years | ||||||||||
Dispensing equipment | ||||||||||||
Unusual or Infrequent Item [Line Items] | ||||||||||||
Useful economic lives, minimum (in years) | 7 years | 7 years | ||||||||||
Minimum | ||||||||||||
Unusual or Infrequent Item [Line Items] | ||||||||||||
Payment period | 60 days | 60 days | ||||||||||
Minimum | Buildings and improvements | ||||||||||||
Unusual or Infrequent Item [Line Items] | ||||||||||||
Useful economic lives, minimum (in years) | 20 years | 20 years | ||||||||||
Minimum | Production and office equipment | ||||||||||||
Unusual or Infrequent Item [Line Items] | ||||||||||||
Useful economic lives, minimum (in years) | 3 years | 3 years | ||||||||||
Minimum | Software | ||||||||||||
Unusual or Infrequent Item [Line Items] | ||||||||||||
Useful economic lives, minimum (in years) | 3 years | 3 years | ||||||||||
Maximum | ||||||||||||
Unusual or Infrequent Item [Line Items] | ||||||||||||
Payment period | 120 days | 120 days | ||||||||||
Maximum | Buildings and improvements | ||||||||||||
Unusual or Infrequent Item [Line Items] | ||||||||||||
Useful economic lives, minimum (in years) | 40 years | 40 years | ||||||||||
Maximum | Production and office equipment | ||||||||||||
Unusual or Infrequent Item [Line Items] | ||||||||||||
Useful economic lives, minimum (in years) | 25 years | 25 years | ||||||||||
Maximum | Software | ||||||||||||
Unusual or Infrequent Item [Line Items] | ||||||||||||
Useful economic lives, minimum (in years) | 5 years | 5 years |
Basis of Presentation and Sum_5
Basis of Presentation and Summary of Significant Accounting Policies - Summary of Capitalized Cloud Computing Implementation Costs (Details) - USD ($) $ in Millions | Dec. 31, 2023 | Dec. 31, 2022 |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | ||
Cloud computing implementation costs | $ 56.5 | $ 38.5 |
Less: accumulated amortization | (20.8) | (12.9) |
Cloud computing implementation costs, net | $ 35.7 | $ 25.6 |
Investments - Narrative (Detail
Investments - Narrative (Details) $ in Millions | 3 Months Ended | 12 Months Ended | ||
Aug. 03, 2023 USD ($) | Dec. 31, 2022 USD ($) state | Dec. 31, 2023 USD ($) member | Sep. 30, 2020 state | |
Variable Interest Entity | ||||
Guarantor obligations, maximum undiscounted exposure | $ 33.3 | $ 36.9 | ||
Option to purchase shares, percentage | 0.50 | |||
Option to purchase shares, trading period | 90 days | |||
Equity method investments | 96.9 | $ 222.7 | ||
Variable interest entity, sale of ownership percentage | 0.575 | |||
Loss on deconsolidation | $ (11.1) | |||
Disposal Group, Not Discontinued Operation, Gain (Loss) on Disposal, Statement of Income or Comprehensive Income [Extensible Enumeration] | Other operating income (expense), net | |||
Inventories, net | 792.9 | $ 802.3 | ||
Property, plant and equipment, net | 4,222.8 | $ 4,444.5 | ||
ZOA Energy LLC | ||||
Variable Interest Entity | ||||
Ownership interest | 40% | |||
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% | |||
RMMC/RMBC | ||||
Variable Interest Entity | ||||
Inventories, net | 81.1 | $ 108.2 | ||
Property, plant and equipment, net | 128.6 | 120.7 | ||
BRI & BDL | ||||
Variable Interest Entity | ||||
Guarantor obligations, maximum undiscounted exposure | $ 33.3 | $ 35.4 | ||
BRI | ||||
Variable Interest Entity | ||||
Ownership interest | 50.90% | |||
BDL | ||||
Variable Interest Entity | ||||
Ownership interest | 34% | |||
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, 2023 | Dec. 31, 2022 |
Related Party Transaction [Line Items] | ||
Amounts due from affiliates | $ 121.6 | $ 126.4 |
Related Party | ||
Related Party Transaction [Line Items] | ||
Amounts due from affiliates | 7.4 | 10.3 |
Amounts due to affiliates | 6.8 | 1 |
Related Party | BRI | ||
Related Party Transaction [Line Items] | ||
Amounts due from affiliates | 0 | 4.7 |
Amounts due from affiliates | (0.3) | |
Amounts due to affiliates | 1.6 | |
Related Party | BDL | ||
Related Party Transaction [Line Items] | ||
Amounts due from affiliates | 3.2 | 0.2 |
Amounts due to affiliates | 0 | 0 |
Related Party | Other | ||
Related Party Transaction [Line Items] | ||
Amounts due from affiliates | 4.2 | 5.4 |
Amounts due to affiliates | $ 5.2 | $ 1.3 |
Investments - Schedule of Conso
Investments - Schedule of Consolidated Investments (Details) - USD ($) $ in Millions | Dec. 31, 2023 | Dec. 31, 2022 |
Variable Interest Entity | ||
Total Assets | $ 26,375.1 | $ 25,868.3 |
Total Liabilities | 12,940 | 12,953.1 |
RMMC/RMBC | ||
Variable Interest Entity | ||
Total Assets | 261.6 | 228.2 |
Total Liabilities | 24.7 | 21.2 |
Other | ||
Variable Interest Entity | ||
Total Assets | 2.8 | 43.3 |
Total Liabilities | $ 3.3 | $ 16.1 |
Inventories - Summary (Details)
Inventories - Summary (Details) - USD ($) $ in Millions | Dec. 31, 2023 | Dec. 31, 2022 |
Inventory Disclosure [Abstract] | ||
Finished goods | $ 245.7 | $ 269.1 |
Work in process | 97.4 | 71.9 |
Raw materials | 275.1 | 290.4 |
Packaging materials | 184.1 | 161.5 |
Inventories, net | $ 802.3 | $ 792.9 |
Property, Plant, and Equipmen_2
Property, Plant, and Equipment - Summary (Details) - USD ($) $ in Millions | Dec. 31, 2023 | Dec. 31, 2022 |
Cost of properties and related accumulated depreciation and amortization | ||
Total property, plant and equipment cost | $ 8,546.1 | $ 7,884.7 |
Less: accumulated depreciation | (4,101.6) | (3,661.9) |
Property, plant and equipment, net | 4,444.5 | 4,222.8 |
Land and improvements | ||
Cost of properties and related accumulated depreciation and amortization | ||
Total property, plant and equipment cost | 365.1 | 355.9 |
Buildings and improvements | ||
Cost of properties and related accumulated depreciation and amortization | ||
Total property, plant and equipment cost | 1,283.4 | 1,205.5 |
Production and office equipment | ||
Cost of properties and related accumulated depreciation and amortization | ||
Total property, plant and equipment cost | 5,156 | 4,897.3 |
Software | ||
Cost of properties and related accumulated depreciation and amortization | ||
Total property, plant and equipment cost | 543.8 | 533.3 |
Construction in progress | ||
Cost of properties and related accumulated depreciation and amortization | ||
Total property, plant and equipment cost | 783.7 | 497.4 |
Other | ||
Cost of properties and related accumulated depreciation and amortization | ||
Total property, plant and equipment cost | $ 414.1 | $ 395.3 |
Property, Plant, and Equipmen_3
Property, Plant, and Equipment - Narrative (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Property, Plant and Equipment [Abstract] | |||
Depreciation expense | $ 475.5 | $ 476.7 | $ 568.1 |
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, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Goodwill activity: | ||||
Balance at beginning of year | $ 5,291.9 | $ 6,152.6 | ||
Goodwill impairment | 0 | (845) | $ 0 | |
Foreign currency translation, net | 4.2 | (15.7) | ||
Acquisition | 29.2 | |||
Balance at end of year | $ 5,291.9 | 5,325.3 | 5,291.9 | 6,152.6 |
Accumulate impairment losses | 1,513.3 | 1,513.3 | ||
Americas | ||||
Goodwill activity: | ||||
Balance at beginning of year | 5,291.9 | 6,152.6 | ||
Goodwill impairment | (845) | 0 | (845) | |
Foreign currency translation, net | 4.2 | (15.7) | ||
Acquisition | 29.2 | |||
Balance at end of year | 5,291.9 | 5,325.3 | 5,291.9 | 6,152.6 |
Accumulate impairment losses | 1,513.3 | |||
EMEA&APAC | ||||
Goodwill activity: | ||||
Balance at beginning of year | 0 | 0 | ||
Goodwill impairment | 0 | |||
Foreign currency translation, net | 0 | 0 | ||
Acquisition | 0 | |||
Balance at end of year | 0 | 0 | 0 | $ 0 |
Accumulate impairment losses | $ 1,484.3 | $ 1,484.3 | $ 1,484.3 |
Goodwill and Intangible Asset_3
Goodwill and Intangible Assets - Narrative (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | ||||
Oct. 01, 2023 | Dec. 31, 2022 | Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | Oct. 01, 2022 | |
Schedule of Finite-Lived and Indefinite-Lived Intangible Assets [Line Items] | ||||||
Amortization of intangible assets | $ 207.3 | $ 208.1 | $ 218 | |||
Fair value in excess of carrying value, percentage | 15% | 15% | ||||
Goodwill impairment | 0 | 845 | $ 0 | |||
Brands | ||||||
Schedule of Finite-Lived and Indefinite-Lived Intangible Assets [Line Items] | ||||||
Intangible assets not subject to amortization | $ 8,148.6 | 8,002 | 8,148.6 | |||
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] | ||||||
Goodwill impairment | $ 845 | 0 | 845 | |||
Discount rate | 9% | 8.75% | ||||
EMEA&APAC | ||||||
Schedule of Finite-Lived and Indefinite-Lived Intangible Assets [Line Items] | ||||||
Goodwill impairment | $ 0 | |||||
Discount rate | 13.25% | 11.25% | ||||
Impairment loss | $ 160.7 | 160.7 | ||||
EMEA&APAC | Brands | ||||||
Schedule of Finite-Lived and Indefinite-Lived Intangible Assets [Line Items] | ||||||
Intangible assets not subject to amortization | $ 426.9 |
Goodwill and Intangible Asset_4
Goodwill and Intangible Assets - Intangible Assets (Details) - USD ($) $ in Millions | Dec. 31, 2023 | Dec. 31, 2022 |
Intangible assets subject to amortization | ||
Accumulated amortization | $ (1,777.8) | $ (1,552.4) |
Intangible assets not subject to amortization | ||
Total Gross | 14,392.4 | 14,352.5 |
Total Net | 12,614.6 | 12,800.1 |
Brands | ||
Intangible assets not subject to amortization | ||
Intangible assets not subject to amortization | 8,002 | 8,148.6 |
Distribution networks | ||
Intangible assets not subject to amortization | ||
Intangible assets not subject to amortization | 763.9 | 746.4 |
Other | ||
Intangible assets not subject to amortization | ||
Intangible assets not subject to amortization | 307.6 | 307.6 |
Brands | ||
Intangible assets subject to amortization | ||
Gross | 5,029.2 | 4,861.1 |
Accumulated amortization | (1,634.4) | (1,416.7) |
Net | 3,394.8 | 3,444.4 |
License agreements and distribution rights | ||
Intangible assets subject to amortization | ||
Gross | 204.9 | 200 |
Accumulated amortization | (117.6) | (108) |
Net | 87.3 | 92 |
Other | ||
Intangible assets subject to amortization | ||
Gross | 84.8 | 88.8 |
Accumulated amortization | (25.8) | (27.7) |
Net | $ 59 | $ 61.1 |
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 | 10 years | 15 years |
Minimum | Other | ||
Intangible assets subject to amortization | ||
Useful life | 5 years | 5 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, 2023 USD ($) |
Goodwill and Intangible Assets Disclosure [Abstract] | |
2024 | $ 210.8 |
2025 | 210.8 |
2026 | 192.3 |
2027 | 127.8 |
2028 | $ 126.2 |
Accounts Payable and Other Cu_3
Accounts Payable and Other Current Liabilities - Summary (Details) - USD ($) $ in Millions | Dec. 31, 2023 | Dec. 31, 2022 |
Payables and Accruals [Abstract] | ||
Accounts payable and accrued trade payables | $ 2,149.8 | $ 2,068.2 |
Accrued compensation | 316.8 | 249.2 |
Accrued excise and other non-income related taxes | 255.1 | 239.9 |
Accrued interest | 82.8 | 87.6 |
Returnable container deposit liabilities | 113.2 | 116.8 |
Current operating lease liabilities | 46.9 | 44.7 |
Other | 216.2 | 171.9 |
Accounts payable and other current liabilities | $ 3,180.8 | $ 2,978.3 |
Leases - Narrative (Details)
Leases - Narrative (Details) $ in Millions | Dec. 31, 2023 USD ($) |
Master railcar leases | |
Lessee, Lease, Description [Line Items] | |
Liability for operating lease not yet commenced | $ 23 |
Leases - Components of Lease Ex
Leases - Components of Lease Expense (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Leases [Abstract] | |||
Operating lease expense | $ 81.3 | $ 72.5 | $ 73.2 |
Finance lease expense | 9.5 | 9.5 | 10.4 |
Total lease expense | $ 90.8 | $ 82 | $ 83.6 |
Leases - Supplemental Cash Flow
Leases - Supplemental Cash Flow Information (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Cash paid for amounts included in the measurements of lease liabilities | |||
Operating cash flows for operating leases | $ 58.7 | $ 52.5 | $ 56.8 |
Operating cash flows for finance leases | 3.3 | 3.6 | 4.5 |
Financing cash flows for finance leases | 5.1 | 4.4 | 3.6 |
Supplemental non-cash information on right-of-use assets obtained in exchange for new lease liabilities | |||
Operating leases | 115.7 | 63.9 | 34 |
Finance leases | $ 1.7 | $ 3.8 | $ 7.5 |
Leases - Assets and Liabilities
Leases - Assets and Liabilities, Lessee (Details) - USD ($) $ in Millions | Dec. 31, 2023 | Dec. 31, 2022 |
Operating Leases | ||
Operating Lease, Right-of-Use Asset, Statement of Financial Position [Extensible List] | Other assets | Other assets |
Operating lease right-of-use assets | $ 200.7 | $ 132.7 |
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 | $ 46.9 | $ 44.7 |
Operating Lease, Liability, Noncurrent, Statement of Financial Position [Extensible List] | Other liabilities | Other liabilities |
Non-current operating lease liabilities | $ 163.9 | $ 99.3 |
Operating Lease, Liability | $ 210.8 | $ 144 |
Finance Leases | ||
Finance Lease, Right-of-Use Asset, Statement of Financial Position [Extensible List] | Property, plant and equipment, net | Property, plant and equipment, net |
Finance lease right-of-use assets | $ 46.4 | $ 50.2 |
Finance Lease, Liability, Current, Statement of Financial Position [Extensible List] | Debt, Current | Debt, Current |
Current finance lease liabilities | $ 5.2 | $ 5.3 |
Finance Lease, Liability, Noncurrent, Statement of Financial Position [Extensible List] | Long-term debt | Long-term debt |
Non-current finance lease liabilities | $ 48.5 | $ 56.2 |
Total finance lease liabilities | $ 53.7 | $ 61.5 |
Weighted-Average Remaining Lease Term (Years) | ||
Operating leases, weighted-average remaining lease term (in years) | 7 years 6 months | |
Finance leases, weighted average remaining lease term (in years) | 9 years 7 months 6 days | |
Weighted-Average Discount Rate | ||
Operating leases, weighted average discount rate | 5.10% | |
Finance leases, weighted average discount rate | 6.40% |
Leases - Maturity of Operating
Leases - Maturity of Operating and Finance Lease Liabilities (Details) - USD ($) $ in Millions | Dec. 31, 2023 | Dec. 31, 2022 |
Operating Leases | ||
2024 | $ 53.6 | |
2025 | 46.4 | |
2026 | 37.1 | |
2027 | 24.6 | |
2028 | 18.7 | |
Thereafter | 90.3 | |
Total lease payments | 270.7 | |
Less: interest | (59.9) | |
Present value of operating lease liabilities | 210.8 | $ 144 |
Finance Leases | ||
2024 | 8.5 | |
2025 | 8.1 | |
2026 | 11.5 | |
2027 | 5 | |
2028 | 4.7 | |
Thereafter | 36.5 | |
Total lease payments | 74.3 | |
Less: interest | (20.6) | |
Finance leases | $ 53.7 | $ 61.5 |
Debt - Schedule of Debt Obligat
Debt - Schedule of Debt Obligations (Details) £ in Millions | 12 Months Ended | ||||||||
Dec. 31, 2023 USD ($) | Dec. 31, 2015 | Dec. 31, 2023 CAD ($) | Dec. 31, 2023 EUR (€) | Dec. 31, 2023 GBP (£) | Jul. 15, 2023 CAD ($) | Dec. 31, 2022 USD ($) | Dec. 31, 2022 CAD ($) | May 03, 2012 USD ($) | |
Debt Instrument [Line Items] | |||||||||
Finance leases | $ 53,700,000 | $ 61,500,000 | |||||||
Less: unamortized debt discounts and debt issuance costs | (35,500,000) | (39,700,000) | |||||||
Total long-term debt (including current portion) | 6,202,400,000 | 6,541,400,000 | |||||||
Less: current portion of long-term debt | (890,300,000) | (376,200,000) | |||||||
Long-term debt | 5,312,100,000 | 6,165,200,000 | |||||||
Short-term borrowings | 21,500,000 | 20,900,000 | |||||||
Current portion of long-term debt | 890,300,000 | 376,200,000 | |||||||
Current portion of long-term debt and short-term borrowings | 911,800,000 | 397,100,000 | |||||||
EMEA&APAC | |||||||||
Debt Instrument [Line Items] | |||||||||
Overdraft facility | 16,500,000 | 15,900,000 | |||||||
Cash held in bank | 75,500,000 | 49,700,000 | |||||||
Bank cash, net of overdrafts | $ 59,000,000 | $ 33,800,000 | |||||||
Maturing July 15, 2023 and July 15, 2026 | |||||||||
Debt Instrument [Line Items] | |||||||||
Debt instrument, increase (decrease) in effective cost of borrowing | 0.40% | ||||||||
CAD 500 million 2.84% notes due July 2023 | |||||||||
Debt Instrument [Line Items] | |||||||||
Debt instrument, face amount | $ 500,000,000 | $ 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% | 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% | 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% | 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% | 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% | 4.20% | |||||
2016 notes | |||||||||
Debt Instrument [Line Items] | |||||||||
Debt issuance costs capitalized | $ 27,200,000 | ||||||||
USD, CAD and GBP Overdraft Facility | |||||||||
Debt Instrument [Line Items] | |||||||||
Revolving credit facility | $ 0 | $ 0 | |||||||
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, interest rate during period | 2.25% | ||||||||
Line of credit facility, maximum borrowing capacity | £ | £ 10 | ||||||||
Line Of Credit USD | |||||||||
Debt Instrument [Line Items] | |||||||||
Line of credit facility, interest rate during period | 5% | ||||||||
Line of credit facility, maximum borrowing capacity | $ 10,000,000 | ||||||||
Senior notes | |||||||||
Debt Instrument [Line Items] | |||||||||
Debt instrument, face amount | $ 1,900,000,000 | ||||||||
Debt issuance costs capitalized | 8,300,000 | ||||||||
Senior notes | CAD 500 million 2.84% notes due July 2023 | |||||||||
Debt Instrument [Line Items] | |||||||||
Long-term debt, carrying amount | 368,900,000 | ||||||||
Senior notes | EUR 800 million 1.25% notes due July 2024 | |||||||||
Debt Instrument [Line Items] | |||||||||
Long-term debt, carrying amount | 883,100,000 | 856,400,000 | |||||||
Senior notes | CAD 500 million 3.44% notes due July 2026 | |||||||||
Debt Instrument [Line Items] | |||||||||
Long-term debt, carrying amount | 377,600,000 | 368,900,000 | |||||||
Term of derivative | 10 years | ||||||||
Senior notes | $2.0 billion 3.0% notes due July 2026 | |||||||||
Debt Instrument [Line Items] | |||||||||
Long-term debt, carrying amount | 2,000,000,000 | 2,000,000,000 | |||||||
Senior notes | $1.1 billion 5.0% notes due May 2042 | |||||||||
Debt Instrument [Line Items] | |||||||||
Long-term debt, carrying amount | 1,100,000,000 | 1,100,000,000 | |||||||
Senior notes | $1.8 billion 4.2% notes due July 2046 | |||||||||
Debt Instrument [Line Items] | |||||||||
Long-term debt, carrying amount | 1,800,000,000 | 1,800,000,000 | |||||||
Senior notes | Maturing July 15, 2023 and July 15, 2026 | Interest rate swap | |||||||||
Debt Instrument [Line Items] | |||||||||
Term of derivative | 10 years | ||||||||
Other | |||||||||
Debt Instrument [Line Items] | |||||||||
Long-term debt, carrying amount | $ 23,500,000 | $ 25,400,000 |
Debt - Narrative (Details)
Debt - Narrative (Details) | 3 Months Ended | 12 Months Ended | |||
Jun. 30, 2023 USD ($) | Dec. 31, 2023 USD ($) | Jun. 26, 2023 USD ($) | Jun. 25, 2023 USD ($) | Dec. 31, 2022 USD ($) | |
Debt Instrument [Line Items] | |||||
Long-term debt, fair value | $ 5,900,000,000 | $ 5,900,000,000 | |||
Commercial paper | |||||
Debt Instrument [Line Items] | |||||
Line of credit | 0 | 0 | |||
Revolving credit facility | |||||
Debt Instrument [Line Items] | |||||
Line of credit facility, maximum borrowing capacity | $ 2,000,000,000 | $ 1,500,000,000 | |||
Incremental issuance costs | $ 5,200,000 | ||||
Revolving credit facility | Standby Letters of Credit | |||||
Debt Instrument [Line Items] | |||||
Line of credit facility, maximum borrowing capacity | 150,000,000 | ||||
Revolving credit facility | Commercial paper | |||||
Debt Instrument [Line Items] | |||||
Line of credit facility, maximum borrowing capacity | 2,000,000,000 | ||||
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, 2023 USD ($) |
Debt Disclosure [Abstract] | |
2024 | $ 904.6 |
2025 | 0 |
2026 | 2,377.6 |
2027 | 0 |
2028 | 0 |
Thereafter | 2,900 |
Total | $ 6,182.2 |
Debt - Schedule of Interest Cha
Debt - Schedule of Interest Charges (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Debt Disclosure [Abstract] | |||
Interest incurred | $ 243.4 | $ 257.4 | $ 269.1 |
Interest capitalized | (9.4) | (6.8) | (8.8) |
Interest expensed | $ 234 | $ 250.6 | $ 260.3 |
Derivative Instruments and He_3
Derivative Instruments and Hedging Activities - Narrative (Details) $ in Millions | 1 Months Ended | 12 Months Ended | |||||||||||||||
Jul. 31, 2021 USD ($) | Dec. 31, 2023 USD ($) | Dec. 31, 2015 USD ($) | Dec. 31, 2015 CAD ($) | Dec. 31, 2023 CAD ($) | Dec. 31, 2023 EUR (€) | Jul. 15, 2023 CAD ($) | Jun. 30, 2023 USD ($) | Jun. 30, 2023 CAD ($) | Dec. 31, 2022 CAD ($) | Apr. 30, 2022 USD ($) | Jun. 30, 2021 USD ($) | Dec. 31, 2019 USD ($) | Dec. 31, 2019 EUR (€) | Dec. 31, 2018 USD ($) | Dec. 31, 2016 EUR (€) | May 03, 2012 USD ($) | |
Derivatives: | |||||||||||||||||
Maximum length of time hedged economic hedges | 60 months | ||||||||||||||||
Cash flow hedge loss to be reclassified within twelve months | $ 3 | ||||||||||||||||
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 | € 353,000,000 | |||||||||||||||
Payments for derivative instrument, investing activities | $ 12.7 | ||||||||||||||||
Loss on swap | 17.6 | ||||||||||||||||
Forward starting interest rate swap | |||||||||||||||||
Derivatives: | |||||||||||||||||
Notional amount | $ 600,000,000 | $ 1,500 | |||||||||||||||
Derivative terminated | $ 250 | ||||||||||||||||
Loss on forward swap | $ 29.5 | $ 39,200,000 | |||||||||||||||
Cumulative gain (loss) on cash flow hedge, after tax | $ 5.7 | ||||||||||||||||
Foreign currency forwards | |||||||||||||||||
Derivatives: | |||||||||||||||||
Maximum term, commodity swap contract hedge | 60 months | ||||||||||||||||
Foreign currency forwards | Derivatives not designated as hedging instruments: | |||||||||||||||||
Derivatives: | |||||||||||||||||
Notional amount | $ 195 | $ 260,000,000 | |||||||||||||||
Senior notes | |||||||||||||||||
Derivatives: | |||||||||||||||||
Debt instrument, face amount | $ 1,900 | ||||||||||||||||
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 | ||||||||||||||||
$1.0 billion 2.1% notes due 2021 | Senior notes | Parent Guarantor and 2007 Issuer | |||||||||||||||||
Derivatives: | |||||||||||||||||
Debt instrument, interest rate percentage | 2.10% | ||||||||||||||||
$500 million 3.5% notes due May 2022 | |||||||||||||||||
Derivatives: | |||||||||||||||||
Debt instrument, face amount | $ 500 | ||||||||||||||||
Debt instrument, interest rate percentage | 3.50% | ||||||||||||||||
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 | 10 years | |||||||||||||||
CAD 500 million 2.84% notes due July 2023 | |||||||||||||||||
Derivatives: | |||||||||||||||||
Debt instrument, face amount | $ 500,000,000 | $ 500,000,000 | |||||||||||||||
Debt instrument, interest rate percentage | 2.84% | 2.84% |
Derivative Instruments and He_4
Derivative Instruments and Hedging Activities - Derivative Fair Value (Details) - Fair Value, Measurements, Recurring - Significant observable inputs (Level 2) - USD ($) $ in Millions | Dec. 31, 2023 | Dec. 31, 2022 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivatives, fair value, net | $ 9.8 | $ 116.6 |
Forward starting interest rate swaps | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivatives, fair value, net | 41.6 | 40 |
Foreign currency forwards | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivatives, fair value, net | (1.4) | 7.6 |
Commodity swaps and options | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivatives, fair value, net | $ (30.4) | $ 69 |
Derivative Instruments and He_5
Derivative Instruments and Hedging Activities - Fair Value Balance Sheet (Details) $ in Millions, $ in Millions | Dec. 31, 2023 USD ($) | Jun. 30, 2023 USD ($) | Jun. 30, 2023 CAD ($) | Dec. 31, 2022 USD ($) |
Derivatives designated as hedging instruments: | ||||
Derivatives designated as hedging instruments: | ||||
Derivative asset, fair value, designated as hedging instrument | $ 42.7 | $ 47.8 | ||
Derivative liability, fair value, designated as hedging instrument | (2.5) | (0.2) | ||
Derivatives designated as hedging instruments: | Forward starting interest rate swaps | Other Noncurrent Assets | ||||
Derivatives designated as hedging instruments: | ||||
Derivative asset, fair value, designated as hedging instrument | 41.6 | 40 | ||
Derivatives designated as hedging instruments: | Forward starting interest rate swaps | Other Liabilities | ||||
Derivatives designated as hedging instruments: | ||||
Derivative liability, fair value, designated as hedging instrument | 0 | 0 | ||
Derivatives designated as hedging instruments: | Foreign currency forwards | Other Current Assets | ||||
Derivatives designated as hedging instruments: | ||||
Derivative asset, fair value, designated as hedging instrument | 1.1 | 6.2 | ||
Derivatives designated as hedging instruments: | Foreign currency forwards | Other Noncurrent Assets | ||||
Derivatives designated as hedging instruments: | ||||
Derivative asset, fair value, designated as hedging instrument | 0 | 1.6 | ||
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 | (1.2) | (0.1) | ||
Derivatives designated as hedging instruments: | Foreign currency forwards | Other Liabilities | ||||
Derivatives designated as hedging instruments: | ||||
Derivative liability, fair value, designated as hedging instrument | (1.3) | (0.1) | ||
Derivatives not designated as hedging instruments: | ||||
Derivatives not designated as hedging instruments: | ||||
Derivative asset, not designated as hedging instrument, fair value | 17.9 | 94.3 | ||
Derivative liability, not designated as hedging instrument, fair value | (48.3) | (25.3) | ||
Derivatives not designated as hedging instruments: | Foreign currency forwards | ||||
Derivatives designated as hedging instruments: | ||||
Notional amount | $ 195 | $ 260 | ||
Derivatives not designated as hedging instruments: | ||||
Notional amount | $ 195 | $ 260 | ||
Derivatives not designated as hedging instruments: | Commodity swaps | ||||
Derivatives designated as hedging instruments: | ||||
Notional amount | 653.5 | 525.2 | ||
Derivatives not designated as hedging instruments: | ||||
Notional amount | 653.5 | 525.2 | ||
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 | 11.1 | 86.1 | ||
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 | 6.6 | 7.4 | ||
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 | (42) | (14.1) | ||
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 | (6.1) | (10.4) | ||
Derivatives not designated as hedging instruments: | Commodity options | ||||
Derivatives designated as hedging instruments: | ||||
Notional amount | 21.7 | 19.7 | ||
Derivatives not designated as hedging instruments: | ||||
Notional amount | 21.7 | 19.7 | ||
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 | 0.2 | 0.8 | ||
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 | (0.2) | (0.8) | ||
Cash Flow Hedges | Derivatives designated as hedging instruments: | Forward starting interest rate swaps | ||||
Derivatives designated as hedging instruments: | ||||
Notional amount | 1,000 | 1,000 | ||
Derivatives not designated as hedging instruments: | ||||
Notional amount | 1,000 | 1,000 | ||
Cash Flow Hedges | Derivatives designated as hedging instruments: | Foreign currency forwards | ||||
Derivatives designated as hedging instruments: | ||||
Notional amount | 219.4 | 176.6 | ||
Derivatives not designated as hedging instruments: | ||||
Notional amount | $ 219.4 | $ 176.6 |
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, 2023 USD ($) | Dec. 31, 2022 USD ($) | Dec. 31, 2021 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 | $ (3.6) | $ 209.7 | $ 51.1 | |
Amount of gain (loss) recognized from AOCI into income on derivative | (1.3) | (12.9) | (7.5) | |
Net Investment Hedges | ||||
Derivatives: | ||||
Amount of gain (loss) recognized in OCI | (26.5) | 53.2 | 76.5 | |
Amount of gain (loss) recognized in income (amount excluded from effectiveness testing) | 0 | 0 | 6.1 | |
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 | (26.5) | 53.2 | 67.7 | |
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 | 1.6 | 198.9 | 50.7 | |
Forward starting interest rate swap | Cash Flow Hedges | Interest expense, net | ||||
Derivatives: | ||||
Amount of gain (loss) recognized from AOCI into income on derivative | (5.2) | (14.3) | (4.8) | |
Foreign currency forwards | Cash Flow Hedges | ||||
Derivatives: | ||||
Amount of gain (loss) recognized in OCI on derivatives | (5.2) | 10.8 | 0.4 | |
Foreign currency forwards | Cash Flow Hedges | Cost of goods sold | ||||
Derivatives: | ||||
Amount of gain (loss) recognized from AOCI into income on derivative | 4.9 | 1.8 | (3.5) | |
Foreign currency forwards | Cash Flow Hedges | Other non-operating income (expense), net | ||||
Derivatives: | ||||
Amount of gain (loss) recognized from AOCI into income on derivative | $ (1) | $ (0.4) | 0.8 | |
Cross currency swaps | Net Investment Hedges | Interest expense, net | ||||
Derivatives: | ||||
Amount of gain (loss) recognized in OCI | 8.8 | |||
Amount of gain (loss) recognized in income (amount excluded from effectiveness testing) | $ 6.1 |
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, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Gain (Loss) on Derivative Instruments: | |||
Amount of gain (loss) recognized in income on derivative | $ (59) | $ 42.6 | $ 403.2 |
Commodity swaps | Cost of goods sold | |||
Gain (Loss) on Derivative Instruments: | |||
Amount of gain (loss) recognized in income on derivative | (61.7) | $ 42.6 | 403.4 |
Foreign currency swaps | Other non-operating income (expense), net | |||
Gain (Loss) on Derivative Instruments: | |||
Amount of gain (loss) recognized in income on derivative | $ 2.7 | ||
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) |
Employee Retirement Plans and_3
Employee Retirement Plans and Postretirement Benefits - Narrative (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Defined Benefit Plan Disclosure [Line Items] | |||
Pension plan contribution | $ 4.1 | $ 3.6 | $ 7.1 |
Benefits paid, including prescription drugs | 31.2 | 33 | 33.8 |
Defined contribution plan, contribution during the period | 76.8 | 73 | $ 77.8 |
Pension | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Accumulated benefit obligation | 3,000 | $ 3,000 | |
Expected future employer contributions | 4 | ||
Expected future benefit payment, next year | 233.1 | ||
OPEB | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Expected future benefit payment, next year | $ 39.3 | ||
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) | 10% | ||
UK Pension Plan | Pension | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Statutory valuation period | 3 years | ||
Canadian Defined Benefit Pension Plans | Pension | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Expected surplus to be used for benefit payments | $ 6 | ||
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, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Defined Benefit Plan Disclosure [Line Items] | |||
Interest cost | $ 162.9 | $ 120 | |
Total other pension and postretirement (benefit) cost, net | (10.2) | (36.6) | $ (46.4) |
Pension | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Service cost | 0.9 | 1.3 | 2.7 |
Interest cost | 140.4 | 103.9 | 93.9 |
Expected return on plan assets, net of expenses | (157.8) | (154.2) | (161.6) |
Amortization of prior service (benefit) cost | 0.3 | 0.3 | 0.4 |
Amortization of net actuarial (gain) loss | 17.1 | 5.6 | 8.7 |
Curtailment, settlement or special termination benefit (gain) loss | 0 | 2.9 | 5.4 |
Expected participant contributions | (0.3) | (0.3) | (0.4) |
Total other pension and postretirement (benefit) cost, net | (0.3) | (41.8) | (53.6) |
Net periodic pension and OPEB (benefit) cost | 0.6 | (40.5) | (50.9) |
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 | 3.3 | 5.5 | 6 |
Interest cost | 22.5 | 16.1 | 14.6 |
Expected return on plan assets, net of expenses | 0 | 0 | 0 |
Amortization of prior service (benefit) cost | (0.7) | (0.7) | (0.7) |
Amortization of net actuarial (gain) loss | (31.7) | (10.2) | (6.7) |
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 | (9.9) | 5.2 | 7.2 |
Net periodic pension and OPEB (benefit) cost | (6.6) | 10.7 | 13.2 |
Consolidated | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Service cost | 4.2 | 6.8 | 8.7 |
Interest cost | 162.9 | 120 | 108.5 |
Expected return on plan assets, net of expenses | (157.8) | (154.2) | (161.6) |
Amortization of prior service (benefit) cost | (0.4) | (0.4) | (0.3) |
Amortization of net actuarial (gain) loss | (14.6) | (4.6) | 2 |
Curtailment, settlement or special termination benefit (gain) loss | 0 | 2.9 | 5.4 |
Expected participant contributions | (0.3) | (0.3) | (0.4) |
Total other pension and postretirement (benefit) cost, net | (10.2) | (36.6) | (46.4) |
Net periodic pension and OPEB (benefit) cost | $ (6) | $ (29.8) | $ (37.7) |
Employee Retirement Plans and_5
Employee Retirement Plans and Postretirement Benefits - Projected Benefit Obligation (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Change in benefit obligation | |||
Prior year benefit obligation | $ 3,456.3 | $ 5,744.5 | |
Service cost, net of expected employee contributions | 3.9 | 6.5 | |
Interest cost | 162.9 | 120 | |
Actual employee contributions | 0.3 | 0.3 | |
Actuarial (gain) loss | 39.3 | (1,325.6) | |
Plan amendments | 0 | (0.1) | |
Benefits paid | (263.2) | (302.5) | |
Curtailment, settlement and special termination | 0 | (460.4) | |
Foreign currency exchange rate change | 89.2 | (326.4) | |
Benefit obligation at end of year | 3,488.7 | 3,456.3 | $ 5,744.5 |
Change in plan assets | |||
Prior year fair value of assets | 3,336.8 | 5,667.5 | |
Actual return on plan assets | 188.7 | (1,272.9) | |
Employer contributions | 35.3 | 38.2 | |
Curtailment, settlement and special termination | 0 | (460.6) | |
Benefits and plan expenses paid | (263.2) | (302.5) | |
Foreign currency exchange rate change | 99 | (333.2) | |
Fair value of plan assets at end of year | 3,396.9 | 3,336.8 | 5,667.5 |
Funded status | (91.8) | (119.5) | |
Amounts recognized in the Consolidated Balance Sheets | |||
Other non-current assets | 416.9 | 397.2 | |
Accounts payable and other current liabilities | (42.9) | (43.4) | |
Pension and postretirement benefits | (465.8) | (473.3) | |
Net amounts recognized | (91.8) | (119.5) | |
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 | 512.9 | 488.2 | |
Net prior service (benefit) cost | 7.7 | 8.9 | |
Total not yet recognized | 520.6 | 497.1 | |
Pension | |||
Change in benefit obligation | |||
Prior year benefit obligation | 2,978 | 5,095.8 | |
Service cost, net of expected employee contributions | 0.6 | 1 | |
Interest cost | 140.4 | 103.9 | 93.9 |
Actual employee contributions | 0.3 | 0.3 | |
Actuarial (gain) loss | 38 | (1,181) | |
Plan amendments | 0 | 0 | |
Benefits paid | (226.2) | (263.8) | |
Curtailment, settlement and special termination | 0 | (460.6) | |
Foreign currency exchange rate change | 87 | (317.6) | |
Benefit obligation at end of year | 3,018.1 | 2,978 | 5,095.8 |
Change in plan assets | |||
Prior year fair value of assets | 3,336.8 | 5,667.5 | |
Actual return on plan assets | 188.7 | (1,272.9) | |
Employer contributions | (1.7) | (0.5) | |
Curtailment, settlement and special termination | 0 | (460.6) | |
Benefits and plan expenses paid | (226.2) | (263.8) | |
Foreign currency exchange rate change | 99 | (333.2) | |
Fair value of plan assets at end of year | 3,396.9 | 3,336.8 | 5,667.5 |
Funded status | 378.8 | 358.8 | |
Amounts recognized in the Consolidated Balance Sheets | |||
Other non-current assets | 416.9 | 397.2 | |
Accounts payable and other current liabilities | (3.6) | (3.9) | |
Pension and postretirement benefits | (34.5) | (34.5) | |
Net amounts recognized | 378.8 | 358.8 | |
Funded status: | |||
Accumulated benefit obligation | 38.1 | 38.4 | |
Projected benefit obligation | 38.1 | 38.4 | |
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 | 773.3 | 766.4 | |
Net prior service (benefit) cost | 9.4 | 9.7 | |
Total not yet recognized | 782.7 | 776.1 | |
OPEB | |||
Change in benefit obligation | |||
Prior year benefit obligation | 478.3 | 648.7 | |
Service cost, net of expected employee contributions | 3.3 | 5.5 | |
Interest cost | 22.5 | 16.1 | 14.6 |
Actual employee contributions | 0 | 0 | |
Actuarial (gain) loss | 1.3 | (144.6) | |
Plan amendments | 0 | (0.1) | |
Benefits paid | (37) | (38.7) | |
Curtailment, settlement and special termination | 0 | 0.2 | |
Foreign currency exchange rate change | 2.2 | (8.8) | |
Benefit obligation at end of year | 470.6 | 478.3 | 648.7 |
Change in plan assets | |||
Prior year fair value of assets | 0 | 0 | |
Actual return on plan assets | 0 | 0 | |
Employer contributions | 37 | 38.7 | |
Curtailment, settlement and special termination | 0 | 0 | |
Benefits and plan expenses paid | (37) | (38.7) | |
Foreign currency exchange rate change | 0 | 0 | |
Fair value of plan assets at end of year | 0 | 0 | $ 0 |
Funded status | (470.6) | (478.3) | |
Amounts recognized in the Consolidated Balance Sheets | |||
Other non-current assets | 0 | 0 | |
Accounts payable and other current liabilities | (39.3) | (39.5) | |
Pension and postretirement benefits | (431.3) | (438.8) | |
Net amounts recognized | (470.6) | (478.3) | |
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 | (260.4) | (278.2) | |
Net prior service (benefit) cost | (1.7) | (0.8) | |
Total not yet recognized | $ (262.1) | $ (279) |
Employee Retirement Plans and_6
Employee Retirement Plans and Postretirement Benefits - Weighted Average Assumptions (Details) | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Pension | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Discount rate | 5.01% | 2.27% | 1.84% |
Rate of compensation increase | 2% | 2% | 2% |
Expected return on plan assets | 4.91% | 3.11% | 3.03% |
Discount rate | 4.74% | 5.01% | |
Rate of compensation increase | 2% | 2% | |
OPEB | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Discount rate | 4.90% | 2.59% | 2.10% |
Discount rate | 4.64% | 4.90% | |
OPEB | Maximum | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Health care cost trend rate | 6.50% | 6% | 6% |
OPEB | Maximum | Determining PBO | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Health care cost trend rate | 6.75% | 6.50% | |
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, 2023 |
Equities | |
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |
Target allocations | 7.20% |
Actual allocations | 7.80% |
Fixed income | |
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |
Target allocations | 74.20% |
Actual allocations | 72.20% |
Real estate | |
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |
Target allocations | 4.70% |
Actual allocations | 4.80% |
Annuities and longevity swap | |
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |
Target allocations | 13.40% |
Actual allocations | 13.40% |
Other | |
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |
Target allocations | 0.50% |
Actual allocations | 1.80% |
Employee Retirement Plans and_8
Employee Retirement Plans and Postretirement Benefits - Pension Fair Value Hierarchy (Details) - USD ($) $ in Millions | Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 |
Defined Benefit Plan Disclosure [Line Items] | |||
Defined benefit plan assets | $ 3,396.9 | $ 3,336.8 | $ 5,667.5 |
Pension | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Defined benefit plan assets | 3,396.9 | 3,336.8 | 5,667.5 |
Fair Value, Inputs, Level 1, 2 and 3 | Pension | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Defined benefit plan assets | 1,442.5 | 1,264.6 | |
Quoted prices in active markets (Level 1) | Pension | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Defined benefit plan assets | (246.1) | (149.1) | |
Significant observable inputs (Level 2) | Pension | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Defined benefit plan assets | 1,214 | 926.7 | |
Significant unobservable inputs (Level 3) | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Defined benefit plan assets | 474.6 | 487 | $ 754.5 |
Significant unobservable inputs (Level 3) | Pension | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Defined benefit plan assets | 474.6 | 487 | |
Cash | Fair Value, Inputs, Level 1, 2 and 3 | Pension | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Defined benefit plan assets | 39.5 | 99.3 | |
Cash | Quoted prices in active markets (Level 1) | Pension | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Defined benefit plan assets | 39.5 | 99.3 | |
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 | 0 | 32.7 | |
Trades awaiting settlement | Quoted prices in active markets (Level 1) | Pension | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Defined benefit plan assets | 0 | 32.7 | |
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 | 26.4 | 7 | |
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 | 26.4 | 7 | |
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 | 452.3 | 422.6 | |
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 | 452.3 | 422.6 | |
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 | 119.3 | 89.1 | |
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 | 119.3 | 89.1 | |
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 | 629.9 | 420.6 | |
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 | 616 | 408 | |
Interest and inflation linked assets | Significant unobservable inputs (Level 3) | Pension | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Defined benefit plan assets | 13.9 | 12.6 | |
Collateralized debt securities | Fair Value, Inputs, Level 1, 2 and 3 | Pension | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Defined benefit plan assets | 0.2 | ||
Collateralized debt securities | Quoted prices in active markets (Level 1) | Pension | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Defined benefit plan assets | 0 | ||
Collateralized debt securities | Significant observable inputs (Level 2) | Pension | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Defined benefit plan assets | 0 | ||
Collateralized debt securities | Significant unobservable inputs (Level 3) | Pension | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Defined benefit plan assets | 0.2 | ||
Annuities and longevity swap | Fair Value, Inputs, Level 1, 2 and 3 | Pension | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Defined benefit plan assets | 449.8 | 461.8 | |
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 | 449.8 | 461.8 | |
Repurchase agreements | Fair Value, Inputs, Level 1, 2 and 3 | Pension | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Defined benefit plan assets | (285.8) | (281.2) | |
Repurchase agreements | Quoted prices in active markets (Level 1) | Pension | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Defined benefit plan assets | (285.8) | (281.2) | |
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 | 0.2 | 0.1 | |
Recoverable taxes | Quoted prices in active markets (Level 1) | Pension | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Defined benefit plan assets | 0.2 | 0.1 | |
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 | 10.6 | 12.4 | |
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 | 10.6 | 12.4 | |
Private equity | Fair Value Measured at Net Asset Value Per Share | Pension | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Defined benefit plan assets | 37.8 | 44.7 | |
Debt funds | Fair Value Measured at Net Asset Value Per Share | Pension | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Defined benefit plan assets | 1,263.9 | 1,355.7 | |
Equity funds | Fair Value Measured at Net Asset Value Per Share | Pension | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Defined benefit plan assets | 260.7 | 417.4 | |
Real estate funds | Fair Value Measured at Net Asset Value Per Share | Pension | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Defined benefit plan assets | 126.3 | 130.9 | |
Hedge funds | Fair Value Measured at Net Asset Value Per Share | Pension | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Defined benefit plan assets | 265.7 | $ 123.5 | |
Collateralized Securities | Fair Value, Inputs, Level 1, 2 and 3 | Pension | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Defined benefit plan assets | 0.3 | ||
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 | $ 0.3 |
Employee Retirement Plans and_9
Employee Retirement Plans and Postretirement Benefits - Level 3 Rollforward (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Total gain or loss (realized/unrealized): | ||
Prior year fair value of assets | $ 3,336.8 | $ 5,667.5 |
Foreign exchange translation (loss) gain | 99 | (333.2) |
Fair value of plan assets at end of year | 3,396.9 | 3,336.8 |
Significant unobservable inputs (Level 3) | ||
Total gain or loss (realized/unrealized): | ||
Prior year fair value of assets | 487 | 754.5 |
Realized gain (loss) | 0 | (1.9) |
Unrealized gain (loss) included in AOCI | (34.2) | (183.5) |
Purchases, issuances, settlements | (2.7) | (6.6) |
Foreign exchange translation (loss) gain | 24.5 | (75.5) |
Fair value of plan assets at end of year | $ 474.6 | $ 487 |
Employee Retirement Plans an_10
Employee Retirement Plans and Postretirement Benefits - Expected Benefit Payments (Details) $ in Millions | Dec. 31, 2023 USD ($) |
Pension | |
Defined Benefit Plan Disclosure [Line Items] | |
2024 | $ 233.1 |
2025 | 227.9 |
2026 | 229 |
2027 | 229.9 |
2028 | 231 |
2029-2033 | 1,170 |
OPEB | |
Defined Benefit Plan Disclosure [Line Items] | |
2024 | 39.3 |
2025 | 39.1 |
2026 | 38.8 |
2027 | 38.6 |
2028 | 38.5 |
2029-2033 | $ 186.4 |
Income Tax - Summary of Income
Income Tax - Summary of Income Taxes (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Pre-tax income | |||
Domestic | $ 1,486 | $ 228.4 | $ 1,307.5 |
Foreign | (233.5) | (290.9) | (68.5) |
Income (loss) before income taxes | $ 1,252.5 | $ (62.5) | $ 1,239 |
Income Tax - Provision for Inco
Income Tax - Provision for Income Taxes (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Current | |||
Federal | $ 200.7 | $ 146.1 | $ 43.5 |
State | 22.1 | 22.3 | 7.1 |
Foreign | 37.3 | (17.2) | (1) |
Total current tax (benefit) expense | 260.1 | 151.2 | 49.6 |
Deferred | |||
Federal | 75 | 56.4 | 163.5 |
State | 27.8 | (26.2) | 70.4 |
Foreign | (66.8) | (57.4) | (53) |
Total deferred tax (benefit) expense | 36 | (27.2) | 180.9 |
Total income tax (benefit) expense | $ 296.1 | $ 124 | $ 230.5 |
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, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Effective Income Tax Rate Reconciliation, Percent [Abstract] | ||||
Statutory federal income tax rate | 21% | 21% | 21% | |
Statutory federal income tax rate | $ 263 | $ (13.1) | $ 260.2 | |
State income taxes, net of federal benefits | 2.40% | 6.10% | 4.70% | |
State income taxes, net of federal benefits | $ 30.6 | $ (3.8) | $ 57.8 | |
Effect of foreign tax rates | (2.40%) | 92.60% | (5.50%) | |
Effect of foreign tax rates | $ (30.5) | $ (57.9) | $ (68.3) | |
Effect of foreign tax law and rate changes | 0.90% | (0.80%) | 1.60% | |
Effect of foreign tax law and rate changes | $ 11.5 | $ 0.5 | $ 19.6 | |
Effect of unrecognized tax benefits | 0.80% | (20.50%) | (6.20%) | |
Effect of unrecognized tax benefits | $ (73) | $ 9.5 | $ 12.8 | $ (76.3) |
Change in valuation allowance | 0.20% | 1.10% | (0.10%) | |
Change in valuation allowance | $ 2.5 | $ (0.7) | $ (1.1) | |
Goodwill impairment | 0% | (287.00%) | (0.20%) | |
Goodwill impairment | $ 0 | $ 179.3 | $ (2.9) | |
Other, net | 0.70% | (10.90%) | 3.30% | |
Other, net | $ 9.5 | $ 6.9 | $ 41.5 | |
Effective tax rate / Tax (benefit) expense | 23.60% | (198.40%) | 18.60% | |
Total income tax (benefit) expense | $ 296.1 | $ 124 | $ 230.5 |
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, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Income Tax Contingency [Line Items] | |||||||
Goodwill impairment | $ 0 | $ 845 | $ 0 | ||||
Effect of unrecognized tax benefits | $ 73 | $ (9.5) | $ (12.8) | $ 76.3 | |||
Additional discrete tax expense | $ 18 | ||||||
Statutory federal income tax rate | 21% | 21% | 21% | ||||
Undistributed earnings of foreign subsidiaries | $ 34 | $ 44.1 | $ 34 | ||||
Remaining unrecognized tax benefits | 5.4 | 5 | 5.4 | ||||
Unrecognized tax benefits, income tax penalties and interest | (5.9) | $ 1.4 | 0.2 | (5.9) | $ 1.4 | ||
Significant change in unrecognized tax benefit | 40.9 | ||||||
Reduction in unrecognized tax benefits | $ 250 | ||||||
Decrease resulting from settlements with taxing authorities | $ 125 | 0 | 3.7 | $ 161.8 | |||
Domestic | General business tax credit carryforward | |||||||
Income Tax Contingency [Line Items] | |||||||
Capital loss carryforwards, tax effect | 69.5 | ||||||
Operating loss carryforwards, not subject to expiration | 10 | ||||||
Foreign | General business tax credit carryforward | |||||||
Income Tax Contingency [Line Items] | |||||||
Capital loss carryforwards, tax effect | 219.1 | ||||||
Operating loss carryforwards, not subject to expiration | $ 43 | ||||||
Canada | |||||||
Income Tax Contingency [Line Items] | |||||||
Statutory federal income tax rate | 26% | ||||||
Minimum | |||||||
Income Tax Contingency [Line Items] | |||||||
Statutes of limitations, term | 3 years | ||||||
Minimum | Europe | |||||||
Income Tax Contingency [Line Items] | |||||||
Statutory federal income tax rate | 900% | ||||||
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% | ||||||
Americas | |||||||
Income Tax Contingency [Line Items] | |||||||
Goodwill impairment | $ 845 | $ 0 | $ 845 |
Income Tax - Deferred Tax Asset
Income Tax - Deferred Tax Assets And Liabilities (Details) - USD ($) $ in Millions | Dec. 31, 2023 | Dec. 31, 2022 |
Deferred tax assets | ||
Compensation-related obligations | $ 43.2 | $ 44.7 |
Pension and postretirement benefits | 23.7 | 33.7 |
Tax credit carryforwards | 36 | 39 |
Tax loss carryforwards | 312.8 | 291.1 |
Accrued liabilities and other | 202.5 | 149 |
Valuation allowance | (61.9) | (57.2) |
Deferred tax assets | 556.3 | 500.3 |
Deferred tax liabilities | ||
Fixed assets | 354.9 | 358.9 |
Partnerships and investments | 38.7 | 33.2 |
Intangible assets | 2,679.9 | 2,563.2 |
Derivative instruments | 12.2 | 31.5 |
Deferred tax liabilities | 3,085.7 | 2,986.8 |
Net deferred tax liabilities | $ 2,529.4 | $ 2,486.5 |
Income Tax - Net Deferred Tax A
Income Tax - Net Deferred Tax Assets and Liabilities Components (Details) - USD ($) $ in Millions | Dec. 31, 2023 | Dec. 31, 2022 |
Income Tax Disclosure [Abstract] | ||
Domestic net non-current deferred tax liabilities | $ 2,029.7 | $ 1,927.7 |
Foreign net non-current deferred tax assets | 123.7 | 125.8 |
Foreign net non-current deferred tax liabilities | 623.4 | 684.6 |
Net non-current deferred tax liabilities | $ 2,529.4 | $ 2,486.5 |
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, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Reconciliation of Unrecognized Tax Benefits, Excluding Amounts Pertaining to Examined Tax Returns [Roll Forward] | ||||
Balance at beginning of year | $ 39.3 | $ 28 | $ 235.7 | |
Additions for tax positions related to the current year | 12.9 | 15.9 | 28.6 | |
Additions for tax positions of prior years | 0.8 | 1.9 | 0 | |
Reductions for tax positions related to the current year | (2) | 0 | (24.1) | |
Reductions for tax positions of prior years | (1.7) | 0 | (48.9) | |
Settlements | $ (125) | 0 | (3.7) | (161.8) |
Release due to statute expirations | (0.7) | (1.3) | (3.4) | |
Foreign currency adjustment | 0.3 | (1.5) | 1.9 | |
Balance at end of year | $ 28 | $ 48.9 | $ 39.3 | $ 28 |
Commitment and Contingencies -
Commitment and Contingencies - Narrative (Details) - USD ($) $ in Millions | 12 Months Ended | |||||
Mar. 07, 2022 | Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 1990 | Mar. 31, 2022 | |
Other Commitments [Line Items] | ||||||
Outstanding letters of credit | $ 54 | |||||
Letter of credit outstanding, automatic renewal | 15 | |||||
Guarantor obligations, maximum undiscounted exposure | 36.9 | $ 33.3 | ||||
Unrecorded unconditional purchase obligation, purchases | 400 | 400 | $ 400 | |||
Accrual for other disputes and environmental loss contingencies | $ 70.2 | 77 | ||||
Environmental Remediation Expense Statement Of Income Or Comprehensive Income Extensible Enumeration Not Disclosed Flag | pretax charge | |||||
Stone Brewing Company v.s. MCBC | ||||||
Other Commitments [Line Items] | ||||||
Total estimate of indemnity liability | $ 58.5 | $ 56.6 | $ 56 | |||
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 | 8.3 | |||||
Tax, civil and labor indemnity reserve | ||||||
Other Commitments [Line Items] | ||||||
Indemnity liability, noncurrent | $ 3.5 | |||||
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 | $ 6 | |||||
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 | $ 72.1 | |||||
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 Purchase Obligations (Details) $ in Millions | Dec. 31, 2023 USD ($) |
Supply and Distribution | |
2024 | $ 371.9 |
2025 | 232 |
2026 | 208.1 |
2027 | 185.2 |
2028 | 194.2 |
Thereafter | 182 |
Total | 1,373.4 |
Advertising and Promotions | |
2024 | 150.6 |
2025 | 151.3 |
2026 | 106.4 |
2027 | 80.5 |
2028 | 61.6 |
Thereafter | 122.7 |
Total | $ 673.1 |
Stockholders' Equity - Capital
Stockholders' Equity - Capital Stock (Details) - shares | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Capital Stock Activity [Roll Forward] | |||
Purchase of treasury shares (in shares) | (3,454,694) | (995,000) | |
Common stock issued, Class A | |||
Capital Stock Activity [Roll Forward] | |||
Beginning balance (in shares) | 2,600,000 | 2,600,000 | 2,600,000 |
Ending balance (in shares) | 2,600,000 | 2,600,000 | 2,600,000 |
Common stock issued, Class B | |||
Capital Stock Activity [Roll Forward] | |||
Beginning balance (in shares) | 200,000,000 | 200,600,000 | 200,300,000 |
Shares issued under equity compensation plans (in shares) | 400,000 | 300,000 | 300,000 |
Purchase of treasury shares (in shares) | (3,400,000) | (1,000,000) | |
Shares exchanged for common stock (in shares) | 1,600,000 | 100,000 | |
Ending balance (in shares) | 198,600,000 | 200,000,000 | 200,600,000 |
Exchangeable shares issued, Class A | |||
Capital Stock Activity [Roll Forward] | |||
Beginning balance (in shares) | 2,700,000 | 2,700,000 | 2,700,000 |
Ending balance (in shares) | 2,700,000 | 2,700,000 | 2,700,000 |
Exchangeable shares issued, Class B | |||
Capital Stock Activity [Roll Forward] | |||
Beginning balance (in shares) | 11,000,000 | 11,100,000 | 11,100,000 |
Shares exchanged for common stock (in shares) | (1,600,000) | (100,000) | |
Ending balance (in shares) | 9,400,000 | 11,000,000 | 11,100,000 |
Stockholders' Equity - Narrativ
Stockholders' Equity - Narrative (Details) $ / shares in Units, $ in Millions | 12 Months Ended | ||
Dec. 31, 2023 USD ($) vote director $ / shares shares | Dec. 31, 2022 USD ($) $ / shares shares | Sep. 29, 2023 USD ($) | |
Class of Stock [Line Items] | |||
Program term | 5 years | ||
Shares repurchased (in shares) | shares | 3,454,694 | 995,000 | |
Weighted average price (in dollars per share) | $ / shares | $ 61.06 | $ 51.70 | |
Aggregate value | $ | $ 211 | $ 51.5 | |
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 | ||
Common Class B | |||
Class of Stock [Line Items] | |||
Common stock, votes per share (in votes) | 1 | ||
Share repurchase program, authorized amount | $ | $ 2,000 | $ 2,000 | |
Shares repurchased (in shares) | shares | 3,400,000 | 1,000,000 | |
Remaining available amount for repurchase | $ | $ 1,800 | ||
Common Class A | |||
Class of Stock [Line Items] | |||
Common stock, votes per share (in votes) | 1 | ||
Common stock, conversion ratio | 1 |
Accumulated Other Comprehensi_3
Accumulated Other Comprehensive Income (Loss) - Rollforward (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward] | |||
Beginning balance | $ 12,915.2 | $ 13,664.1 | $ 12,621.3 |
Ending balance | 13,407.2 | 12,915.2 | 13,664.1 |
Foreign currency translation adjustments | |||
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward] | |||
Beginning balance | (875.2) | (558.7) | (539.5) |
Reclassification of AOCI, current period, before tax | (0.7) | 12.1 | 7.5 |
Tax benefit (expense) | 10.9 | (25.7) | (17.6) |
Ending balance | (778) | (875.2) | (558.7) |
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 | 113.5 | (356.1) | (85.6) |
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 | (26.5) | 53.2 | 76.5 |
AOCI foreign currency translation adjustments | |||
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward] | |||
OCI before reclassifications before tax | 113.5 | (354.9) | (86.8) |
Gain (loss) on derivative instruments | |||
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward] | |||
Beginning balance | 32.2 | (131) | (173.9) |
OCI before reclassifications before tax | (3.6) | 209.7 | 51.1 |
Reclassification of AOCI, current period, before tax | 1.3 | 12.9 | 7.5 |
Tax benefit (expense) | 0.7 | (59.4) | (15.7) |
Ending balance | 30.6 | 32.2 | (131) |
Pension and postretirement benefit adjustments | |||
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward] | |||
Beginning balance | (335.1) | (275.1) | (397.7) |
Reclassification of AOCI, current period, before tax | (15) | (2.1) | 7.1 |
Tax benefit (expense) | 5.9 | 19.1 | (41.9) |
Ending balance | (352.7) | (335.1) | (275.1) |
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) | |
Net change in pension and other postretirement benefit assets and liabilities recognized in other comprehensive income (loss) | |||
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward] | |||
OCI before reclassifications before tax | (8.5) | (78.2) | 158.6 |
Equity method investments | |||
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward] | |||
Beginning balance | (27.4) | (41.2) | (56.7) |
OCI before reclassifications before tax | 15.4 | 18.7 | 20.8 |
Tax benefit (expense) | (4.2) | (4.9) | (5.3) |
Ending balance | (16.2) | (27.4) | (41.2) |
Accumulated other comprehensive income (loss) | |||
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward] | |||
Beginning balance | (1,205.5) | (1,006) | (1,167.8) |
Tax benefit (expense) | 13.3 | (70.9) | (80.5) |
Ending balance | $ (1,116.3) | $ (1,205.5) | $ (1,006) |
Accumulated Other Comprehensi_4
Accumulated Other Comprehensive Income (Loss) - AOCI Reclassifications (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | |||
Interest expense | $ (234) | $ (250.6) | $ (260.3) |
Cost of goods sold | (7,333.3) | (7,045.8) | (6,226.3) |
Other non-operating income (expense), net | 12.7 | (10.3) | (3.5) |
Other pension and postretirement benefit (cost), net | 10.2 | 36.6 | 46.4 |
Income (loss) before income taxes | 1,252.5 | (62.5) | 1,239 |
Other operating income (expense), net | (162.7) | (38.6) | (44.5) |
Income tax benefit (expense) | (296.1) | (124) | (230.5) |
Net income (loss) | 956.4 | (186.5) | 1,008.5 |
Reclassification out of AOCI | |||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | |||
Net income (loss) | 11 | (19.9) | (18.4) |
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 | (5.2) | (14.3) | (4.8) |
Cost of goods sold | 4.9 | 1.8 | (3.5) |
Other non-operating income (expense), net | (1) | (0.4) | 0.8 |
Income (loss) before income taxes | (1.3) | (12.9) | (7.5) |
Income tax benefit (expense) | 0.4 | 3.5 | 2 |
Net income (loss) | (0.9) | (9.4) | (5.5) |
Accumulated defined benefit plans adjustment | Reclassification out of AOCI | |||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | |||
Income (loss) before income taxes | 15 | 2.1 | (7.1) |
Income tax benefit (expense) | (3.8) | (0.5) | 1.7 |
Net income (loss) | 11.2 | 1.6 | (5.4) |
Prior service benefit (cost) | Reclassification out of AOCI | |||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | |||
Other pension and postretirement benefit (cost), net | 0.4 | 0.4 | 0.3 |
Net actuarial gain (loss) and settlement | Reclassification out of AOCI | |||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | |||
Other pension and postretirement benefit (cost), net | 14.6 | 1.7 | (7.4) |
Foreign currency translation adjustments | Reclassification out of AOCI | |||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | |||
Other operating income (expense), net | 0.7 | (12.1) | (7.5) |
Net income (loss) | $ 0.7 | $ (12.1) | $ (7.5) |
Share-Based Payments - Narrativ
Share-Based Payments - Narrative (Details) $ / shares in Units, shares in Millions, $ in Millions | 12 Months Ended | ||
Dec. 31, 2023 USD ($) plan $ / shares shares | Dec. 31, 2022 USD ($) $ / shares shares | Dec. 31, 2021 USD ($) $ / shares shares | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Cost not yet recognized | $ | $ 54 | ||
Cost not yet recognized, period of recognition | 1 year 9 months 18 days | ||
Exercise of option, tax benefit | $ | $ 5.2 | $ 2.9 | $ 2 |
RSUs | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Award vesting period | 3 years | ||
Awards granted (in shares) | shares | 0.5 | 0.5 | 0.6 |
Weighted average market value (in dollars per share) | $ 54.97 | $ 52.05 | $ 45.84 |
PSUs | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Award vesting period | 3 years | ||
Awards granted (in shares) | shares | 0.3 | 0.3 | 0.4 |
Weighted average market value (in dollars per share) | $ 56.75 | $ 53.54 | |
Weighted-average fair value (in dollars per share) | $ 62.31 | 62.98 | $ 45.71 |
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) | $ 51.26 | $ 49.07 | |
Weighted-average fair value (in dollars per share) | $ 54.98 | ||
Total intrinsic value, vested in period | $ | $ 22 | $ 17.2 | $ 12.7 |
Stock options | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Award vesting period | 3 years | ||
Awards granted (in shares) | shares | 0.2 | 0.3 | 0.3 |
Weighted-average fair value (in dollars per share) | $ 13.38 | $ 12.16 | $ 10.06 |
Terms of SBC award | 10 years | ||
Total intrinsic value of stock options exercised | $ | $ 2.2 | $ 0.7 | $ 0.9 |
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 | 4.3 | ||
DSUs | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Ratio of cash retainer payments received in stock | 0.5 | ||
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, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Pre-tax share-based compensation expense | $ 44.9 | $ 33.6 | $ 32.1 |
Tax benefit | (7.8) | (5.9) | (5.5) |
After-tax share-based compensation expense | $ 37.1 | $ 27.7 | $ 26.6 |
Share-Based Payments - Non-vest
Share-Based Payments - Non-vested (Details) - $ / shares shares in Millions | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
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) | $ 49.07 | ||
Granted (in dollars per share) | 54.98 | ||
Vested (in dollars per share) | 49.29 | ||
Forfeited (in dollars per share) | 49.06 | ||
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) | $ 51.26 | $ 49.07 | |
PSUs | |||
Units | |||
Non-vested awards outstanding at the beginning of the period (in shares) | 0.9 | ||
Granted (in shares) | 0.3 | 0.3 | 0.4 |
Vested (in shares) | 0 | ||
Forfeited (in shares) | (0.1) | ||
Adjustment for performance results achieved (in shares) | (0.2) | ||
Non-vested awards outstanding at the end of the period (in shares) | 0.9 | 0.9 | |
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) | $ 53.54 | ||
Granted (in dollars per share) | 62.31 | $ 62.98 | $ 45.71 |
Vested (in dollars per share) | 0 | ||
Forfeited (in dollars per share) | 56.29 | ||
Adjustment for performance results achieved (in dollars per share) | 52.60 | ||
Nonvested awards, weighted-average grant date fair value per unit at end of period (in dollars per share) | $ 56.75 | $ 53.54 |
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, 2023 | Dec. 31, 2022 | |
Awards | ||
Outstanding at the beginning of the period (in shares) | 1.5 | |
Granted (in shares) | 0.3 | |
Exercised (in shares) | (0.2) | |
Forfeited (in shares) | (0.1) | |
Outstanding at the end of the period (in shares) | 1.5 | 1.5 |
Expected to vest at end of period (in shares) | 0.5 | |
Exercisable at end of period (in shares) | 1 | |
Weighted- average exercise price per unit | ||
Weighted-average exercise price of shares outstanding, beginning of the period (in dollars per share) | $ 57.14 | |
Weighted-average exercise price of shares granted (in dollars per share) | 53.75 | |
Weighted-average exercise price of shares exercised (in dollars per share) | 50.37 | |
Weighted-average exercise price of shares forfeited (in dollars per share) | 51.62 | |
Weighted-average exercise price of shares outstanding, end of the period (in dollars per share) | 57.25 | $ 57.14 |
Weighted-average exercise price of shares expected to vest (in dollars per share) | 51.61 | |
Weighted-average exercise price of shares exercisable (in dollars per share) | $ 59.87 | |
Weighted- average remaining contractual life (years) | ||
Weighted-average remaining contractual life at beginning of period | 6 years 1 month 6 days | 6 years 7 months 6 days |
Weighted-average remaining contractual life at end of period | 6 years 1 month 6 days | 6 years 7 months 6 days |
Weighted-average remaining contractual life, expected to vest | 8 years 4 months 24 days | |
Weighted-average remaining contractual life, exercisable | 5 years | |
Aggregate intrinsic value | ||
Aggregate intrinsic value of shares outstanding, beginning | $ 2.1 | |
Aggregate intrinsic value of shares outstanding, ending | 11.7 | $ 2.1 |
Aggregate intrinsic value of shares expected to vest | 4.7 | |
Aggregate intrinsic value of shares exercisable | $ 7 |
Share-Based Payments - Weighted
Share-Based Payments - Weighted-Average Assumptions (Details) - $ / shares | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Stock options | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Risk-free interest rate | 4.05% | 1.88% | 0.79% |
Dividend yield | 3.04% | 2.86% | 3.11% |
Weighted-average volatility | 29.69% | 31.65% | 33.74% |
Expected term (years) | 5 years 7 months 6 days | 5 years 8 months 12 days | 5 years 7 months 6 days |
Weighted-average fair value (in dollars per share) | $ 13.38 | $ 12.16 | $ 10.06 |
Stock options | Minimum | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Volatility range | 22.62% | 30.91% | 30.84% |
Stock options | Maximum | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Volatility range | 32.04% | 33.85% | 42.44% |
PSUs | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Risk-free interest rate | 4.42% | 1.58% | 0.24% |
Weighted-average volatility | 32.58% | 35.93% | 35.46% |
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) | $ 62.31 | $ 62.98 | $ 45.71 |
PSUs | Minimum | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Volatility range | 17.19% | 22.65% | 23% |
PSUs | Maximum | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Volatility range | 35.87% | 45.30% | 44.71% |
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, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Unusual or Infrequent Item [Line Items] | |||
Other operating income (expense), net | $ (162.7) | $ (38.6) | $ (44.5) |
Employee-related charges | |||
Unusual or Infrequent Item [Line Items] | |||
Other operating income (expense), net | (4.1) | (6) | (11.7) |
Asset abandonment and other restructuring costs | |||
Unusual or Infrequent Item [Line Items] | |||
Other operating income (expense), net | 0 | (3.1) | (25.9) |
Intangible and tangible asset impairments, excluding goodwill | |||
Unusual or Infrequent Item [Line Items] | |||
Other operating income (expense), net | (160.8) | (36.3) | (13.5) |
Gains and (losses) on disposals and other | |||
Unusual or Infrequent Item [Line Items] | |||
Other operating income (expense), net | $ 2.2 | $ 6.8 | $ 6.6 |
Other Operating Income (Expen_4
Other Operating Income (Expense), net - Narrative (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |||||
Oct. 01, 2023 | Aug. 03, 2023 | Sep. 30, 2022 | Sep. 30, 2021 | Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Unusual or Infrequent Item [Line Items] | |||||||
Accelerated depreciation | $ 0 | $ 0 | $ 15.4 | ||||
Goodwill and intangible asset impairment | $ 13.5 | ||||||
Loss on deconsolidation | $ 11.1 | ||||||
EMEA&APAC | |||||||
Unusual or Infrequent Item [Line Items] | |||||||
Impairment loss | $ 160.7 | $ 160.7 | |||||
Americas | Impairment losses | |||||||
Unusual or Infrequent Item [Line Items] | |||||||
Special items, net | 28.6 | ||||||
Special items, noncontrolling interest | $ 12.1 | ||||||
Alton Brewery | |||||||
Unusual or Infrequent Item [Line Items] | |||||||
Gain on disposal group | $ 4.9 | $ 11.4 |
Segment Reporting - Income (Los
Segment Reporting - Income (Loss) Before Income Taxes by Segment (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Segment Reporting | |||
Net sales | $ 11,702.1 | $ 10,701 | $ 10,279.7 |
Equity income (loss) | 12 | 4.7 | 0 |
Interest expense | (234) | (250.6) | (260.3) |
Interest income | 25.4 | 4.3 | 2 |
Income (loss) before income taxes | 1,252.5 | (62.5) | 1,239 |
Income tax benefit (expense) | (296.1) | (124) | (230.5) |
Net income (loss) | 956.4 | (186.5) | 1,008.5 |
Net (income) loss attributable to noncontrolling interests | (7.5) | 11.2 | (2.8) |
Net income (loss) attributable to Molson Coors Beverage Company | 948.9 | (175.3) | 1,005.7 |
Unallocated | |||
Segment Reporting | |||
Net sales | 0 | 0 | 0 |
Equity income (loss) | 0 | 0 | |
Interest expense | (228) | (244) | (253.1) |
Interest income | 24 | 3.9 | 1.8 |
Income (loss) before income taxes | (273.1) | (436.4) | 29.6 |
Inter-segment net sales eliminations | |||
Segment Reporting | |||
Net sales | (19.2) | (15.7) | (7.6) |
Equity income (loss) | 0 | 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 | 9,425.2 | 8,711.5 | 8,485 |
Equity income (loss) | 12 | 4.7 | |
Interest expense | (1.4) | (1.5) | (1.4) |
Interest income | 0.7 | 0.2 | 0 |
Income (loss) before income taxes | 1,566.7 | 312.9 | 1,176.5 |
EMEA&APAC | Operating segments | |||
Segment Reporting | |||
Net sales | 2,296.1 | 2,005.2 | 1,802.3 |
Equity income (loss) | 0 | 0 | |
Interest expense | (4.6) | (5.1) | (5.8) |
Interest income | 0.7 | 0.2 | 0.2 |
Income (loss) before income taxes | $ (41.1) | $ 61 | $ 32.9 |
Segment Reporting - Total Asset
Segment Reporting - Total Assets and Cash Flow Information (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Segment Reporting | |||
Assets | $ 26,375.1 | $ 25,868.3 | |
Depreciation and amortization | 682.8 | 684.8 | $ 786.1 |
Capital expenditures | 671.5 | 661.4 | 522.6 |
Americas | |||
Segment Reporting | |||
Assets | 22,753.8 | 22,242.7 | |
Depreciation and amortization | 514.4 | 526.9 | 601.4 |
Capital expenditures | 525.8 | 483.5 | 405 |
EMEA&APAC | |||
Segment Reporting | |||
Assets | 3,621.3 | 3,625.6 | |
Depreciation and amortization | 168.4 | 157.9 | 184.7 |
Capital expenditures | $ 145.7 | $ 177.9 | $ 117.6 |
Segment Reporting - Net Sales (
Segment Reporting - Net Sales (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Segment Reporting | |||
Net sales | $ 11,702.1 | $ 10,701 | $ 10,279.7 |
Unaffiliated customers | |||
Segment Reporting | |||
Net sales | 11,702.1 | 10,701 | 10,279.7 |
United States and its territories | Unaffiliated customers | |||
Segment Reporting | |||
Net sales | 8,059.6 | 7,405.6 | 7,168.7 |
Canada | Unaffiliated customers | |||
Segment Reporting | |||
Net sales | 1,224 | 1,165.3 | 1,188.4 |
United Kingdom | Unaffiliated customers | |||
Segment Reporting | |||
Net sales | 1,313.7 | 1,166.3 | 959.1 |
Other foreign countries | Unaffiliated customers | |||
Segment Reporting | |||
Net sales | $ 1,104.8 | $ 963.8 | $ 963.5 |
Segment Reporting - Properties
Segment Reporting - Properties (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Segment Reporting | ||
Properties, net | $ 4,645.2 | $ 4,355.5 |
Maximum percentage of properties accounted for by a single country | 10% | |
United States and its territories | ||
Segment Reporting | ||
Properties, net | $ 2,720.2 | 2,444.6 |
Canada | ||
Segment Reporting | ||
Properties, net | 1,002.9 | 1,050.6 |
United Kingdom | ||
Segment Reporting | ||
Properties, net | 414.1 | 365.4 |
Other foreign countries | ||
Segment Reporting | ||
Properties, net | $ 508 | $ 494.9 |
SCHEDULE II (Details)
SCHEDULE II (Details) - Deferred tax valuation allowance - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
SEC Schedule, 12-09, Movement in Valuation Allowances and Reserves [Roll Forward] | |||
Balance at beginning of year | $ 57.2 | $ 60.7 | $ 62.2 |
Additions charged to costs and expenses | 13.2 | 20.6 | 14.8 |
Deductions | (10.2) | (23) | (16.2) |
Foreign exchange impact | 1.7 | (1.1) | (0.1) |
Balance at end of year | $ 61.9 | $ 57.2 | $ 60.7 |