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Special Items
 6 Months Ended
Jun. 30, 2017
Unusual or Infrequent Items, or Both [Abstract]  
Special Items
Special Items
We have incurred charges or realized benefits that either we do not believe to be indicative of our core operations, or we believe are significant to our current operating results warranting separate classification. As such, we have separately classified these charges (benefits) as special items.
 
Three Months Ended
 
Six Months Ended
 
June 30, 2017
 
June 30, 2016
 
June 30, 2017
 
June 30, 2016
 
(In millions)
Employee-related charges
 
 
 
 
 
 
 
Restructuring
$
0.4

 
$
(0.2
)
 
$
1.3

 
$
(1.8
)
Canada - OPEB curtailment gain
—

 
—

 
(2.9
)
 
—

Impairments or asset abandonment charges
 
 
 
 
 
 
 
U.S. - Asset abandonment(1)
12.4

 
—

 
14.4

 
—

Canada - Asset abandonment(2)
1.1

 
1.4

 
2.3

 
2.5

Europe - Asset abandonment(3)
2.6

 
2.5

 
5.2

 
4.8

International - Asset impairment and write-off(4)
—

 
30.8

 
—

 
30.8

Termination fees and other (gains) losses
 
 
 
 
 
 
 
Canada - Gain on sale of asset(2)
—

 
—

 
—

 
(110.4
)
Total Special items, net
$
16.5

 
$
34.5

 
$
20.3

 
$
(74.1
)

(1)
During the third quarter of 2015, MillerCoors announced plans to close its brewery in Eden, North Carolina, in an effort to optimize the brewery footprint and streamline operations for greater efficiencies. Products produced in Eden were transitioned to other breweries in the U.S. supply chain network and the Eden brewery is now closed. For the three and six months ended June 30, 2017, certain costs related to the closure of the brewery were recorded within special items.
(2)
As part of our ongoing strategic review of our Canadian supply chain network, we completed the sale of our Vancouver brewery on March 31, 2016, and we recognized a gain of $110.4 million within special items in the first quarter of 2016, resulting in net cash proceeds received in the second quarter of 2016 of CAD 183.1 million ($140.8 million). In conjunction with the sale of the brewery, we agreed to leaseback the existing property to continue operations on an uninterrupted basis while our new brewery is being constructed. We have evaluated this transaction pursuant to the accounting guidance for sale-leaseback transactions, and concluded that the relevant criteria had been met for full gain recognition. Additionally, during the three and six months ended June 30, 2017, and 2016, we incurred other abandonment charges, consisting primarily of accelerated depreciation charges in excess of normal depreciation, related to the planned closure of the Vancouver brewery, which is currently expected to occur in the third quarter of 2019.
Additionally, in the third quarter of 2017, as a result of the continuation of this strategic review, we announced the plan to build a more efficient and flexible brewery in the greater Montreal area. As a result of this decision, we have begun to develop plans to transition out of our existing Montreal brewery. Accordingly, we will begin to incur accelerated depreciation and other charges associated with the existing brewery closure in the third quarter of 2017. These charges will continue to be incurred on an ongoing basis until completion of the project and will be recorded as special items.
(3)
As a result of our continued strategic review of our European supply chain network, for the three and six months ended June 30, 2017, and 2016, we incurred charges consisting primarily of accelerated depreciation charges in excess of normal depreciation related to the planned closure of our Burton South brewery.
(4)
Based on an interim impairment assessment performed during the second quarter of 2016, which was triggered by the enactment of total alcohol prohibition in the state of Bihar, India, on April 5, 2016, we recorded an impairment loss in the second quarter of 2016.
Restructuring Activities
Beginning in 2016, restructuring initiatives related to the integration of MillerCoors after the completion of the Acquisition were implemented in order to operate a more efficient business and achieve cost saving targets which to-date resulted in reduced employment levels by approximately 70 employees. Severance costs related to these restructuring activities were recorded as special items within our unaudited condensed consolidated statements of operations. As we continually evaluate our cost structure and seek opportunities for further efficiencies and cost savings as part of these initiatives, we may incur additional restructuring related charges in the future, however, we are unable to estimate the amount of charges at this time.
We have continued our ongoing assessment of our supply chain strategies across our segments in order to align with our cost saving objectives. As part of this strategic review, which began in 2014, we have had restructuring activities related to the closure of the Alton and Plovdiv breweries and our current planned closures of the Vancouver and Burton South breweries. As a result, we have reduced employment levels by a total of 404 employees, of which 332 and 72 relate to 2015 and 2014 restructuring programs, respectively. Consequently, we recognized severance and other employee-related charges, which we have recorded as special items within our unaudited condensed consolidated statements of operations. We will continue to evaluate our supply chain network and seek opportunities for further efficiencies and cost savings, and we therefore may incur additional restructuring related charges or adjustments to previously recorded charges in the future, however, we are unable to estimate the amount of charges at this time.
The accrued restructuring balances represent expected future cash payments required to satisfy the remaining severance obligations to terminated employees, the majority of which we expect to be paid in the next 12 to 18 months.
 
U.S.
 
Canada
 
Europe
 
International
 
Corporate
 
Total
 
(In millions)
Total at December 31, 2016
$
5.1

 
$
5.9

 
$
2.8

 
$
0.2

 
$
0.7

 
$
14.7

Charges incurred
0.7

 
(0.1
)
 
—

 
0.6

 
0.1

 
1.3

Payments made
(4.6
)
 
(0.8
)
 
(0.5
)
 
(0.2
)
 
(0.6
)
 
(6.7
)
Foreign currency and other adjustments
—

 
0.1

 
0.1

 
—

 
—

 
0.2

Total at June 30, 2017
$
1.2


$
5.1

 
$
2.4

 
$
0.6

 
$
0.2

 
$
9.5

 
U.S.
 
Canada
 
Europe
 
International
 
Corporate
 
Total
 
(In millions)
Total at December 31, 2015
$
—

 
$
2.3

 
$
5.6

 
$
1.3

 
$
—

 
$
9.2

Payments made
—

 
(0.1
)
 
(0.6
)
 
(1.3
)
 
—

 
(2.0
)
Changes in estimates
—

 
—

 
(1.8
)
 
—

 
—

 
(1.8
)
Foreign currency and other adjustments
—

 
0.1

 
(0.4
)
 
—

 
—

 
(0.3
)
Total at June 30, 2016
$
—


$
2.3

 
$
2.8

 
$
—

 
$
—

 
$
5.1