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Special Items (Tables)
12 Months Ended
Dec. 31, 2020
Unusual or Infrequent Items, or Both [Abstract]  
Summary of Special Items Recorded by Segment
 For the years ended
 December 31, 2020December 31, 2019December 31, 2018
 (In millions)
Employee-related charges
Restructuring$67.6 $52.4 $34.7 
Impairments or asset abandonment charges
North America - Asset abandonment(1)
115.8 38.8 32.7 
North America - Impairment losses(2)
39.6 671.7 — 
Europe - Asset abandonment(3)
3.7 1.2 3.8 
Europe - Impairment losses(4)
1,516.2 12.2 — 
Termination fees and other (gains) losses
North America(5)
(2.0)(68.3)(326.9)
Europe(6)
(0.7)0.8 6.0 
Total Special items, net$1,740.2 $708.8 $(249.7)
(1)Following management approval in December 2019, in January 2020, we announced plans to cease production at our Irwindale, California brewery and entered into an option agreement with Pabst Brewing Company, LLC ("Pabst"), granting Pabst an option to purchase our Irwindale, California brewery, including plant equipment and machinery and the underlying land for $150 million, subject to adjustment as further specified in the option agreement. Pursuant to the option agreement on May 4, 2020, Pabst exercised its option to purchase the Irwindale brewery and the purchase was completed in the fourth quarter of 2020. Production at the Irwindale brewery ceased during the third quarter of 2020.
Charges associated with the brewery closure for the year ended December 31, 2020 and 2019 totaled $117.7 million and $15.8 million, respectively, excluding the fourth quarter gain on sale of the brewery of $2.1 million. The charges for the year ended December 31, 2020 primarily consisted of accelerated depreciation in excess of normal depreciation of $96.0 million and employee related costs of retention and severance of $16.5 million. The employee related costs of retention and severance are included in the restructuring line above. The charges for fiscal year 2019 primarily consisted of accelerated depreciation in excess of normal depreciation of $8.0 million and employee related costs of retention and severance of $1.1 million.
In addition to incurring accelerated depreciation for Irwindale, in 2020, 2019 and 2018, we incurred asset abandonment charges, related to the accelerated depreciation in excess of normal depreciation as a result of the Vancouver brewery closure, which occurred in the third quarter of 2019, and the planned Montreal brewery closure, which is currently expected to occur in 2021. We currently expect to incur additional charges, including estimated accelerated depreciation charges in excess of normal depreciation of approximately CAD 10 million, through the completion of the Montreal brewery closure. However, due to the uncertainty inherent in our estimates, these estimated future accelerated depreciation charges as well as the timing of the brewery closure are subject to change.
Charges in 2018 also included accelerated depreciation in excess of normal depreciation related to the closure of the Colfax, California cidery, which was completed during the first quarter of 2019, as well as other costs associated with
the previously closed Eden, North Carolina brewery, including net charges associated with the sale of the Eden real property.
(2)Of the $39.6 million of impairment losses recognized in the North America segment for the year ended December 31, 2020, we recorded aggregate impairment losses of $17.0 million related to certain regional craft brand definite-lived intangible assets during the fourth quarter of 2020. The estimates and assumptions used to determine the fair value represent Level 3 measurements and additional impairment losses may be recognized in the future. The remaining $22.6 million of impairments recognized in 2020 were related to definite-lived tangible assets associated with these regional craft brands.
Of the $671.7 million of impairment losses recognized in the North America segment in fiscal year 2019, we recorded $668.3 million of goodwill impairment losses related to the North America reporting unit. See Note 10, "Goodwill and Intangible Assets" for further discussion.
(3)We incurred asset abandonment charges in our Europe segment in fiscal year 2020 primarily related to the closure of a small brewery in Europe as a result of the ongoing impacts of the coronavirus pandemic. Further, as a result of our continued strategic review of our European supply chain network, during 2020, 2019 and 2018, we incurred charges consisting primarily of accelerated depreciation in excess of normal depreciation related to the closure of our Burton South brewery and Alton brewery and other associated closure costs.
(4)During the fourth quarter of 2020, we recognized goodwill impairment losses on the Europe reporting unit of $1,484.3 million. See Note 10, "Goodwill and Intangible Assets" for further discussion. In addition, during the fourth quarter of 2020, we incurred impairment losses as a result of small brewery closures in Europe as a result of the ongoing impact of the coronavirus pandemic. During the third quarter of 2020, we recognized an impairment loss of $30.0 million related to the held for sale classification of a disposal group within our India business, representing an insignificant part of our Europe segment. The held for sale disposal group was measured at fair value on a nonrecurring basis using Level 3 inputs. The estimated fair value less cost to sell was determined using a market approach, based upon the expected net sales proceeds of the disposal group. The remaining carrying value of the disposal group held for sale is presented within other current assets, net on our consolidated balance sheet as of December 31, 2020.
During the third quarter of 2019, we recorded goodwill impairment losses within the former India reporting unit of $6.1 million. We also recorded impairment losses related to definite-lived intangible assets in India of $6.1 million. See Note 10, "Goodwill and Intangible Assets" for further discussion.
(5)During 2020, we recognized termination fees and other gains of $2.0 million, which was primarily due to the gain recorded on the sale of the Irwindale brewery.
During the second quarter of 2019, we completed the sale of the existing Montreal brewery property for $96.2 million, and recognized a gain of $61.3 million. See Note 19, "Leases" for further discussion.
During the first quarter of 2018, we received $330.0 million from ABI, of which $328.0 million constituted a purchase price adjustment (the "Adjustment Amount"), related to the Miller International Business which was acquired in our acquisition of the remaining portion of MillerCoors which occurred on October 11, 2016. As this settlement occurred following the finalization of purchase accounting, we recorded the settlement proceeds related to the Adjustment Amount as a gain within special items, net in our consolidated statement of operations in the North America segment and within cash provided by operating activities in our consolidated statement of cash flows for the year ended December 31, 2018.
(6)During 2019, we recognized a special charge of $0.5 million related to the deconsolidation of the Grolsch joint venture.
Represents charges related to the exit of our China business in 2018, consisting primarily of the reclassification of the associated cumulative foreign currency translation adjustment from AOCI upon substantial liquidation in the fourth quarter of 2018. See Note 14, "Accumulated Other Comprehensive Income (Loss)" for further details.
Schedule of Restructuring Accruals
North AmericaEuropeTotal
(In millions)
Balance as of December 31, 2017$4.9 $2.0 $6.9 
Charges incurred and changes in estimates31.2 3.5 34.7 
Payments made(11.5)(4.3)(15.8)
Foreign currency and other adjustments(0.1)(0.1)(0.2)
Balance as of December 31, 2018$24.5 $1.1 $25.6 
Charges incurred and changes in estimates43.4 9.0 52.4 
Payments made(25.5)(5.6)(31.1)
Foreign currency and other adjustments0.2 — 0.2 
Balance as of December 31, 2019$42.6 $4.5 $47.1 
Charges incurred63.7 9.5 73.2 
Payments made(77.3)(11.1)(88.4)
Changes in estimates(4.6)(1.0)(5.6)
Foreign currency and other adjustments0.1 0.1 0.2 
Balance as of December 31, 2020$24.5 $2.0 $26.5