Supplemental Guarantor Information Supplemental (Tables)

12 Months Ended

Dec. 31, 2019

Supplemental Guarantor Information [Text Block]

Supplemental Guarantor Information

For purposes of this Note 20, including the tables, "Parent Issuer" shall mean MCBC. "Subsidiary Guarantors" shall mean certain Canadian and U.S. subsidiaries reflecting the substantial operations of each of our Canada and U.S. segments.

SEC Registered Securities

On May 3, 2012, MCBC issued $1.9 billion of senior notes, in a registered public offering, consisting of $300 million 2.0% senior notes due 2017 (subsequently repaid in the second quarter of 2017), $500 million 3.5% senior notes due 2022, and $1.1 billion 5.0% senior notes due 2042. Additionally, on July 7, 2016, MCBC issued the $500 million 1.45% senior notes due 2019 (subsequently repaid in the third quarter of 2019), $1.0 billion 2.10% senior notes due 2021, $2.0 billion 3.0% senior notes due 2026, $1.8 billion 4.2% senior notes due 2046 and EUR $800.0 million 1.25% senior notes due 2024, in a registered public offering. In December 2017, MCBC completed an exchange offer in which it issued publicly registered senior notes in exchange for its $500 million 1.90% senior notes due 2019 (subsequently repaid in the first quarter of 2019), $500 million 2.25% senior notes due 2020 and our EUR 500 million floating rate senior notes due 2019 (subsequently repaid in the first quarter of 2019), which were issued in private placement transactions in March 2017. "Parent Issuer" in the below tables is specifically referring to MCBC in its capacity as the issuer of these 2012, 2016 and 2017 issuances. These senior notes are guaranteed on a senior unsecured basis by the Subsidiary Guarantors. Each of the Subsidiary Guarantors is 100% owned by the Parent Issuer. The guarantees are full and unconditional and joint and several.

None of our other outstanding debt is registered with the SEC, and such other outstanding debt is guaranteed on a senior unsecured basis by the Parent and/or Subsidiary Guarantors. These guarantees are full and unconditional and joint and several. See Note 11, "Debt" for details of all debt issued and outstanding as of December 31, 2019.

Presentation

In the fourth quarter of 2019, MillerCoors LLC, a subsidiary guarantor, as well as certain other subsidiary guarantors declared distributions totaling approximately $5 billion to MCBC, which were simultaneously non-cash settled via offset to an equal amount of payables that were owed by MCBC to MillerCoors LLC and the other subsidiary guarantors. Also in the fourth quarter of 2019, two subsidiary guarantors, each separately agreed to transfer certain intercompany note receivables to two separate subsidiary non-guarantors, in consideration for equity in non-cash transactions of approximately CAD 5 billion and approximately EUR 1 billion, respectively.

In the first quarter of 2018, MillerCoors LLC, a subsidiary guarantor, declared a distribution of approximately $1.7 billion to MCBC, which was simultaneously non-cash settled via offset to an equal amount of payables that were owed by MCBC to MillerCoors LLC.

The following information sets forth the condensed consolidating statements of operations for the years ended December 31, 2019, December 31, 2018 and December 31, 2017, condensed consolidating balance sheets as of December 31, 2019 and December 31, 2018, and condensed consolidating statements of cash flows for the years ended December 31, 2019, December 31, 2018 and December 31, 2017. Investments in subsidiaries are accounted for under the equity method; accordingly, entries necessary to consolidate the Parent Issuer and all of our guarantor and non-guarantor subsidiaries are reflected in the eliminations column. In the opinion of management, separate complete financial statements of MCBC and the Subsidiary Guarantors would not provide additional material information that would be useful in assessing their financial composition.

Supplemental Guarantor Information, Statement of Operations

MOLSON COORS BEVERAGE COMPANY AND SUBSIDIARIES

CONDENSED CONSOLIDATING STATEMENT OF OPERATIONS

(IN MILLIONS)



	Year ended
	December 31, 2019
	Parent Issuer			Subsidiary Guarantors			Subsidiary Non Guarantors			Eliminations			Consolidated
Sales	$	115.8		$	9,931.2		$	3,583.6		$	(621.5	)	$	13,009.1
Excise taxes	—			(1,356.5		)	(1,073.2		)	—			(2,429.7		)
Net sales	115.8			8,574.7			2,510.4			(621.5		)	10,579.4
Cost of goods sold	(8.4		)	(5,057.6		)	(1,762.0		)	449.8			(6,378.2		)
Gross profit	107.4			3,517.1			748.4			(171.7		)	4,201.2
Marketing, general and administrative expenses	(244.0		)	(1,994.9		)	(660.8		)	171.7			(2,728.0		)
Special items, net	(14.4		)	(317.1		)	(377.3		)	—			(708.8		)
Equity income (loss) in subsidiaries	593.4			(444.8		)	(199.1		)	50.5			—
Operating income (loss)	442.4			760.3			(488.8		)	50.5			764.4
Interest income (expense), net	(297.9		)	262.1			(236.9		)	—			(272.7		)
Other pension and postretirement benefits (costs), net	—			(25.4		)	28.3			—			2.9
Other income (expense), net	(0.5		)	(47.5		)	33.3			—			(14.7		)
Total other income (expense), net	(298.4		)	189.2			(175.3		)	—			(284.5		)
Income (loss) before income taxes	144.0			949.5			(664.1		)	50.5			479.9
Income tax benefit (expense)	97.7			(354.4		)	23.0			—			(233.7		)
Net income (loss)	241.7			595.1			(641.1		)	50.5			246.2
Net (income) loss attributable to noncontrolling interests	—			—			(4.5		)	—			(4.5		)
Net income (loss) attributable to MCBC	$	241.7		$	595.1		$	(645.6	)	$	50.5		$	241.7
Comprehensive income (loss) attributable to MCBC	$	304.3		$	695.3		$	(608.3	)	$	(87.0	)	$	304.3

MOLSON COORS BEVERAGE COMPANY AND SUBSIDIARIES

CONDENSED CONSOLIDATING STATEMENT OF OPERATIONS

(IN MILLIONS)



	Year ended
	December 31, 2018
	Parent Issuer			Subsidiary Guarantors			Subsidiary Non Guarantors			Eliminations			Consolidated
Sales	$	162.5		$	10,118.0		$	3,739.8		$	(682.3	)	$	13,338.0
Excise taxes	—			(1,420.3		)	(1,148.1		)	—			(2,568.4		)
Net sales	162.5			8,697.7			2,591.7			(682.3		)	10,769.6
Cost of goods sold	(2.0		)	(5,242.6		)	(1,800.3		)	460.1			(6,584.8		)
Gross profit	160.5			3,455.1			791.4			(222.2		)	4,184.8
Marketing, general and administrative expenses	(305.5		)	(2,041.0		)	(678.4		)	222.2			(2,802.7		)
Special items, net	(1.7		)	270.6			(19.2		)	—			249.7
Equity income (loss) in subsidiaries	1,367.8			(126.5		)	131.4			(1,372.7		)	—
Operating income (loss)	1,221.1			1,558.2			225.2			(1,372.7		)	1,631.8
Other income (expense), net
Interest income (expense), net	(323.2		)	342.7			(317.7		)	—			(298.2		)
Other pension and postretirement benefits (costs), net	(0.1		)	5.4			32.9			—			38.2
Other income (expense), net	(0.1		)	(57.3		)	45.4			—			(12.0		)
Total other income (expense), net	(323.4		)	290.8			(239.4		)	—			(272.0		)
Income (loss) before income taxes	897.7			1,849.0			(14.2		)	(1,372.7		)	1,359.8
Income tax benefit (expense)	218.8			(480.8		)	36.8			—			(225.2		)
Net income (loss)	1,116.5			1,368.2			22.6			(1,372.7		)	1,134.6
Net (income) loss attributable to noncontrolling interests	—			—			(18.1		)	—			(18.1		)
Net income (loss) attributable to MCBC	$	1,116.5		$	1,368.2		$	4.5		$	(1,372.7	)	$	1,116.5
Comprehensive income (loss) attributable to MCBC	$	826.5		$	1,061.9		$	(122.8	)	$	(939.1	)	$	826.5

MOLSON COORS BEVERAGE COMPANY AND SUBSIDIARIES

CONDENSED CONSOLIDATING STATEMENT OF OPERATIONS

(IN MILLIONS)



	Year ended
	December 31, 2017
	Parent Issuer			Subsidiary Guarantors			Subsidiary Non Guarantors			Eliminations			Consolidated
Sales	$	21.8		$	10,457.9		$	3,513.7		$	(521.9	)	$	13,471.5
Excise taxes	—			(1,475.1		)	(993.6		)	—			(2,468.7		)
Net sales	21.8			8,982.8			2,520.1			(521.9		)	11,002.8
Cost of goods sold	(2.0		)	(5,020.3		)	(1,701.4		)	487.0			(6,236.7		)
Gross profit	19.8			3,962.5			818.7			(34.9		)	4,766.1
Marketing, general and administrative expenses	(284.8		)	(2,165.8		)	(636.3		)	34.9			(3,052.0		)
Special items, net	(0.8		)	(29.8		)	(5.8		)	—			(36.4		)
Equity income (loss) in subsidiaries	2,001.8			(285.7		)	193.4			(1,909.5		)	—
Operating income (loss)	1,736.0			1,481.2			370.0			(1,909.5		)	1,677.7
Other income (expense), net
Interest income (expense), net	(308.4		)	275.6			(310.5		)	—			(343.3		)
Other pension and postretirement benefits (costs), net	—			1.3			46.1			—			47.4
Other income (expense), net	(8.5		)	178.9			(169.0		)	—			1.4
Total other income (expense), net	(316.9		)	455.8			(433.4		)	—			(294.5		)
Income (loss) before income taxes	1,419.1			1,937.0			(63.4		)	(1,909.5		)	1,383.2
Income tax benefit (expense)	146.5			64.8			(6.7		)	—			204.6
Net income (loss)	1,565.6			2,001.8			(70.1		)	(1,909.5		)	1,587.8
Net (income) loss attributable to noncontrolling interests	—			—			(22.2		)	—			(22.2		)
Net income (loss) attributable to MCBC	$	1,565.6		$	2,001.8		$	(92.3	)	$	(1,909.5	)	$	1,565.6
Comprehensive income (loss) attributable to MCBC	$	2,277.4		$	2,785.8		$	376.8		$	(3,162.6	)	$	2,277.4

Supplemental Guarantor Information, Balance Sheets

MOLSON COORS BEVERAGE COMPANY AND SUBSIDIARIES

CONDENSED CONSOLIDATING BALANCE SHEETS

(IN MILLIONS)



	As of
	December 31, 2019
	Parent Issuer			Subsidiary Guarantors			Subsidiary Non Guarantors		Eliminations			Consolidated
Assets
Current assets:
Cash and cash equivalents	$	15.7		$	119.6		$	388.1	$	—		$	523.4
Accounts receivable, net	—			396.3			318.5		—			714.8
Other receivables, net	14.4			58.4			32.7		—			105.5
Inventories, net	—			449.1			166.8		—			615.9
Other current assets, net	3.0			126.0			95.8		—			224.8
Intercompany accounts receivable	94.1			190.0			14.9		(299.0		)	—
Total current assets	127.2			1,339.4			1,016.8		(299.0		)	2,184.4
Properties, net	19.8			3,294.7			1,232.0		—			4,546.5
Goodwill	—			6,146.5			1,484.9		—			7,631.4
Other intangibles, net	4.0			11,750.6			1,901.4		—			13,656.0
Net investment in and advances to subsidiaries	21,200.6			8,364.9			4,497.9		(34,063.4		)	—
Other assets	137.2			364.4			417.9		(78.0		)	841.5
Total assets	$	21,488.8		$	31,260.5		$	10,550.9	$	(34,440.4	)	$	28,859.8
Liabilities and equity
Current liabilities:
Accounts payable and other current liabilities	$	170.7		$	1,722.0		$	874.6	$	—		$	2,767.3
Current portion of long-term debt and short-term borrowings	499.7			415.1			13.4		—			928.2
Intercompany accounts payable	—			150.7			148.3		(299.0		)	—
Total current liabilities	670.4			2,287.8			1,036.3		(299.0		)	3,695.5
Long-term debt	7,250.3			779.1			80.1		—			8,109.5
Pension and postretirement benefits	7.2			695.5			13.9		—			716.6
Deferred tax liabilities	—			1,593.3			743.3		(78.0		)	2,258.6
Other liabilities	142.6			172.2			91.7		—			406.5
Intercompany notes payable	—			—			65.0		(65.0		)	—
Total liabilities	8,070.5			5,527.9			2,030.3		(442.0		)	15,186.7
MCBC stockholders' equity	13,419.4			25,796.5			8,266.9		(34,063.4		)	13,419.4
Intercompany notes receivable	(1.1		)	(63.9		)	—		65.0			—
Total stockholders' equity	13,418.3			25,732.6			8,266.9		(33,998.4		)	13,419.4
Noncontrolling interests	—			—			253.7		—			253.7
Total equity	13,418.3			25,732.6			8,520.6		(33,998.4		)	13,673.1
Total liabilities and equity	$	21,488.8		$	31,260.5		$	10,550.9	$	(34,440.4	)	$	28,859.8

MOLSON COORS BEVERAGE COMPANY AND SUBSIDIARIES

CONDENSED CONSOLIDATING BALANCE SHEETS

(IN MILLIONS)



	As of
	December 31, 2018
	Parent Issuer			Subsidiary Guarantors			Subsidiary Non Guarantors			Eliminations			Consolidated
Assets
Current assets:
Cash and cash equivalents	$	515.8		$	156.1		$	386.0		$	—		$	1,057.9
Accounts receivable, net	—			427.3			317.1			—			744.4
Other receivables, net	50.0			48.3			28.3			—			126.6
Inventories, net	—			451.6			140.2			—			591.8
Other current assets, net	3.0			157.2			85.4			—			245.6
Intercompany accounts receivable	—			2,366.0			31.0			(2,397.0		)	—
Total current assets	568.8			3,606.5			988.0			(2,397.0		)	2,766.3
Properties, net	19.0			3,427.5			1,161.8			—			4,608.3
Goodwill	—			6,444.0			1,816.8			—			8,260.8
Other intangibles, net	6.0			11,800.0			1,970.4			—			13,776.4
Net investment in and advances to subsidiaries	25,475.0			3,893.2			4,579.7			(33,947.9		)	—
Other assets	159.9			193.2			436.0			(91.1		)	698.0
Total assets	$	26,228.7		$	29,364.4		$	10,952.7		$	(36,436.0	)	$	30,109.8
Liabilities and equity
Current liabilities:
Accounts payable and other current liabilities	$	170.8		$	1,651.0		$	884.6		$	—		$	2,706.4
Current portion of long-term debt and short-term borrowings	1,572.6			—			21.9			—			1,594.5
Intercompany accounts payable	1,836.5			120.9			439.6			(2,397.0		)	—
Total current liabilities	3,579.9			1,771.9			1,346.1			(2,397.0		)	4,300.9
Long-term debt	7,765.6			1,097.4			30.8			—			8,893.8
Pension and postretirement benefits	3.2			711.2			12.2			—			726.6
Deferred tax liabilities	—			1,461.1			758.9			(91.1		)	2,128.9
Other liabilities	26.0			199.3			98.5			—			323.8
Intercompany notes payable	1,347.6			63.6			5,998.6			(7,409.8		)	—
Total liabilities	12,722.3			5,304.5			8,245.1			(9,897.9		)	16,374.0
MCBC stockholders' equity	13,507.4			30,057.5			3,890.4			(33,947.9		)	13,507.4
Intercompany notes receivable	(1.0		)	(5,997.6		)	(1,411.2		)	7,409.8			—
Total stockholders' equity	13,506.4			24,059.9			2,479.2			(26,538.1		)	13,507.4
Noncontrolling interests	—			—			228.4			—			228.4
Total equity	13,506.4			24,059.9			2,707.6			(26,538.1		)	13,735.8
Total liabilities and equity	$	26,228.7		$	29,364.4		$	10,952.7		$	(36,436.0	)	$	30,109.8

Supplemental Guarantor Information, Statement of Cash Flows

MOLSON COORS BEVERAGE COMPANY AND SUBSIDIARIES

CONDENSED CONSOLIDATING STATEMENT OF CASH FLOWS

(IN MILLIONS)



	Year ended
	December 31, 2019
	Parent Issuer			Subsidiary Guarantors			Subsidiary Non Guarantors			Eliminations			Consolidated
Net cash provided by (used in) operating activities	$	1,328.1		$	494.9		$	279.8		$	(205.5	)	$	1,897.3
CASH FLOWS FROM INVESTING ACTIVITIES:
Additions to properties	(9.3		)	(354.9		)	(229.6		)	—			(593.8		)
Proceeds from sales of properties and other assets	—			110.3			5.6			—			115.9
Other	46.2			(4.5		)	2.9			—			44.6
Net intercompany investing activity	89.9			84.9			65.2			(240.0		)	—
Net cash provided by (used in) investing activities	126.8			(164.2		)	(155.9		)	(240.0		)	(433.3		)
CASH FLOWS FROM FINANCING ACTIVITIES:
Exercise of stock options under equity compensation plans	1.6			—			—			—			1.6
Dividends paid	(389.6		)	(205.5		)	(34.8		)	205.5			(424.4		)
Payments on debt and borrowings	(1,566.3		)	(0.9		)	(19.0		)	—			(1,586.2		)
Proceeds on debt and borrowings	—			—			3.0			—			3.0
Net proceeds from (payments on) revolving credit facilities and commercial paper	—			—			(4.7		)	—			(4.7		)
Other	(3.8		)	(9.8		)	17.3			—			3.7
Net intercompany financing activity	—			(156.2		)	(83.8		)	240.0			—
Net cash provided by (used in) financing activities	(1,958.1		)	(372.4		)	(122.0		)	445.5			(2,007.0		)
CASH AND CASH EQUIVALENTS:
Net increase (decrease) in cash and cash equivalents	(503.2		)	(41.7		)	1.9			—			(543.0		)
Effect of foreign exchange rate changes on cash and cash equivalents	3.1			5.2			0.2			—			8.5
Balance at beginning of year	515.8			156.1			386.0			—			1,057.9
Balance at end of period	$	15.7		$	119.6		$	388.1		$	—		$	523.4

MOLSON COORS BEVERAGE COMPANY AND SUBSIDIARIES

CONDENSED CONSOLIDATING STATEMENT OF CASH FLOWS

(IN MILLIONS)



	Year ended
	December 31, 2018
	Parent Issuer			Subsidiary Guarantors			Subsidiary Non Guarantors			Eliminations			Consolidated
Net cash provided by (used in) operating activities	$	1,199.8		$	1,044.6		$	331.7		$	(244.8	)	$	2,331.3
CASH FLOWS FROM INVESTING ACTIVITIES:
Additions to properties	(11.1		)	(440.5		)	(200.1		)	—			(651.7		)
Proceeds from sales of properties and other assets	—			23.4			9.1			—			32.5
Other	—			(0.6		)	(49.3		)	—			(49.9		)
Net intercompany investing activity	46.3			(35.4		)	176.4			(187.3		)	—
Net cash provided by (used in) investing activities	35.2			(453.1		)	(63.9		)	(187.3		)	(669.1		)
CASH FLOWS FROM FINANCING ACTIVITIES:
Exercise of stock options under equity compensation plans	16.0			—			—			—			16.0
Dividends paid	(325.2		)	(56.4		)	(217.4		)	244.8			(354.2		)
Payments on debt and borrowings	—			(307.3		)	(12.5		)	—			(319.8		)
Debt issuance costs	(0.5		)	—			—			—			(0.5		)
Net proceeds from (payments on) revolving credit facilities and commercial paper	(378.4		)	—			4.1			—			(374.3		)
Other	(5.1		)	(8.5		)	37.5			—			23.9
Net intercompany financing activity	(32.6		)	(199.9		)	45.2			187.3			—
Net cash provided by (used in) financing activities	(725.8		)	(572.1		)	(143.1		)	432.1			(1,008.9		)
CASH AND CASH EQUIVALENTS:
Net increase (decrease) in cash and cash equivalents	509.2			19.4			124.7			—			653.3
Effect of foreign exchange rate changes on cash and cash equivalents	—			(4.2		)	(9.8		)	—			(14.0		)
Balance at beginning of year	6.6			140.9			271.1			—			418.6
Balance at end of period	$	515.8		$	156.1		$	386.0		$	—		$	1,057.9

MOLSON COORS BEVERAGE COMPANY AND SUBSIDIARIES

CONDENSED CONSOLIDATING STATEMENT OF CASH FLOWS

(IN MILLIONS)



	Year ended
	December 31, 2017
	Parent Issuer			Subsidiary Guarantors			Subsidiary Non Guarantors			Eliminations			Consolidated
Net cash provided by (used in) operating activities	$	792.5		$	1,474.7		$	818.5		$	(1,219.4	)	$	1,866.3
CASH FLOWS FROM INVESTING ACTIVITIES:
Additions to properties	(12.1		)	(428.6		)	(158.9		)	—			(599.6		)
Proceeds from sales of properties and other assets	—			4.4			56.1			—			60.5
Other	—			0.4			0.5			—			0.9
Net intercompany investing activity	72.1			21.1			(254.4		)	161.2			—
Net cash provided by (used in) investing activities	60.0			(402.7		)	(356.7		)	161.2			(538.2		)
CASH FLOWS FROM FINANCING ACTIVITIES:
Exercise of stock options under equity compensation plans	4.0			—			—			—			4.0
Dividends paid	(324.0		)	(809.5		)	(439.3		)	1,219.4			(353.4		)
Payments on debt and borrowings	(2,600.0		)	(398.4		)	(1.7		)	—			(3,000.1		)
Proceeds on debt and borrowings	1,536.0			—			—			—			1,536.0
Debt issuance costs	(7.0		)	—			—			—			(7.0		)
Net proceeds from (payments on) revolving credit facilities and commercial paper	378.5			—			(4.2		)	—			374.3
Other	(12.9		)	(11.1		)	(26.2		)	—			(50.2		)
Net intercompany financing activity	32.2			149.1			(20.1		)	(161.2		)	—
Net cash provided by (used in) financing activities	(993.2		)	(1,069.9		)	(491.5		)	1,058.2			(1,496.4		)
CASH AND CASH EQUIVALENTS:
Net increase (decrease) in cash and cash equivalents	(140.7		)	2.1			(29.7		)	—			(168.3		)
Effect of foreign exchange rate changes on cash and cash equivalents	—			(2.7		)	28.7			—			26.0
Balance at beginning of year	147.3			141.5			272.1			—			560.9
Balance at end of period	$	6.6		$	140.9		$	271.1		$	—		$	418.6