Debt

Debt obligations

Our total borrowings as of September 30, 2016, and December 31, 2015, were comprised of the following:



	As of
	September 30, 2016			December 31, 2015
	(In millions)
Senior notes:
CAD 500 million 3.95% Series A notes due 2017	$	380.9		$	361.3
CAD 400 million 2.25% notes due 2018	304.7			289.0
CAD 500 million 2.75% notes due 2020	380.9			361.3
CAD 500 million 2.84% notes due 2023⁽¹⁾	380.9			—
CAD 500 million 3.44% notes due 2026⁽¹⁾	380.9			—
$300 million 2.0% notes due 2017⁽²⁾	300.3			300.6
$500 million 1.45% notes due 2019⁽¹⁾	500.0			—
$1.0 billion 2.10% notes due 2021⁽¹⁾	1,000.0			—
$500 million 3.5% notes due 2022⁽²⁾	515.7			517.8
$2.0 billion 3.0% notes due 2026⁽¹⁾	2,000.0			—
$1.1 billion 5.0% notes due 2042	1,100.0			1,100.0
$1.8 billion 4.2% notes due 2046⁽¹⁾	1,800.0			—
EUR 800 million 1.25% notes due 2024⁽¹⁾	898.8			—
Less: unamortized debt discounts and debt issuance costs	(82.5		)	(21.3		)
Total long-term debt (including current portion)	9,860.6			2,908.7
Less: current portion of long-term debt	(299.9		)	—
Total long-term debt	$	9,560.7		$	2,908.7

Short-term borrowings:
Cash pool overdrafts⁽³⁾	$	0.4		$	18.7
Short-term facilities⁽⁴⁾	10.9			7.5
Other short-term borrowings	15.7			2.5
Current portion of long-term debt	299.9			—
Current portion of long-term debt and short-term borrowings	$	326.9		$	28.7

(1)

On July 7, 2016, MCBC issued approximately $5.3 billion senior notes with portions maturing from July 15, 2019, through July 15, 2046 (“USD Notes”), and EUR 800.0 million senior notes maturing July 15, 2024 (“EUR Notes”), and Molson Coors International LP, a Delaware limited partnership and wholly-owned subsidiary of MCBC ("Molson Coors International LP"), completed a private placement of CAD 1.0 billion senior notes maturing July 15, 2023, and July 15, 2026 (“CAD Notes”), in order to partially fund the financing of the Acquisition (USD Notes, EUR Notes and CAD Notes, collectively, the “2016 Notes”). These issuances resulted in total proceeds of approximately $6.9 billion, net of underwriting fees and discounts of $36.5 million and $17.7 million, respectively. Total estimated debt issuance costs capitalized in connection with these notes, including underwriting fees, discounts and other financing related costs, are $64.2 million and are being amortized over the respective terms of the 2016 Notes. The 2016 Notes began accruing interest upon issuance, with semi-annual interest payments due on the USD Notes and CAD Notes in January and July beginning in 2017, and annual interest payments due on the EUR Notes in July beginning in 2017.

Prior to issuing the EUR Notes and the CAD Notes, we entered into foreign currency forward agreements to economically hedge the foreign currency exposure of a portion of the respective notes, which were subsequently settled on July 7, 2016, concurrent with the issuance of the 2016 Notes. Additionally, upon issuance we designated the EUR Notes as a net investment hedge of our Europe business. See Note 13, "Derivative Instruments and Hedging Activities" for further details.

Additionally, in order to maximize the yield on the cash received from the issuance of the 2016 Notes and the February 3, 2016, equity issuance, while maintaining the ability to readily access these funds, MCBC strategically invested the proceeds in various fixed rate deposit and money market accounts with terms of one month or less as of September 30, 2016. We have accordingly recorded interest income of $10.6 million and $17.0 million, respectively, for the three and nine months ended September 30, 2016, respectively within interest income (expense).

(2)

During the fourth quarter of 2015, we settled our interest rate swaps that were in fair value hedge accounting relationships related to these notes at which time we ceased adjusting the carrying value of the related notes for the fair value movements of these swaps and began amortizing the cumulative adjustments to interest expense over the remaining term of the respective note. At the time of settlement, cumulative adjustments to the carrying value of the notes were $0.7 million and $18.1 million related to the $300 million and $500 million notes, respectively. See Note 12 "Debt" of the Notes included in our Annual Report for additional detail.


(3)	As of September 30, 2016, we had $0.4 million in bank overdrafts and $36.3 million in bank cash related to our cross-border, cross-currency cash pool for a net positive position of $35.9 million. As of December 31, 2015, we had $18.7 million in bank overdrafts and $39.6 million in bank cash related to our cross-border, cross-currency cash pool for a net positive position of $20.9 million.


(4)	We had total outstanding borrowings of $10.9 million and $7.5 million under our two Japanese Yen ("JPY") overdraft facilities as of September 30, 2016, and December 31, 2015, respectively. In addition, we have GBP and CAD lines of credit under which we had no borrowings as of September 30, 2016, or December 31, 2015.