Debt

12 Months Ended

Dec. 31, 2022

Debt Disclosure [Abstract]

Debt

Debt

Debt Obligations

	As of
	December 31, 2022		December 31, 2021
	(In millions)
Long-term debt
$500 million 3.5% notes due May 2022(1)(2)	$	—	$	500.9
CAD 500 million 2.84% notes due July 2023(3)(4)	368.9		395.7
EUR 800 million 1.25% notes due July 2024(3)	856.4		909.6
CAD 500 million 3.44% notes due July 2026(3)(4)	368.9		395.7
$2.0 billion 3.0% notes due July 2026(3)	2,000.0		2,000.0
$1.1 billion 5.0% notes due May 2042(2)	1,100.0		1,100.0
$1.8 billion 4.2% notes due July 2046(3)	1,800.0		1,800.0
Finance leases	61.5		67.2
Other	25.4		30.7
Less: unamortized debt discounts and debt issuance costs	(39.7)		(44.6)
Total long-term debt (including current portion)	6,541.4		7,155.2
Less: current portion of long-term debt	(376.2)		(508.0)
Total long-term debt	$	6,165.2	$	6,647.2
Short-term borrowings
Short-term borrowings(5)	20.9		6.9
Current portion of long-term debt	376.2		508.0
Current portion of long-term debt and short-term borrowings	$	397.1	$	514.9

(1)We repaid our $500 million 3.5% USD notes upon maturity on May 1, 2022 using a combination of commercial paper borrowings and cash on hand.

(2)On May 3, 2012, we issued approximately $1.9 billion of senior notes with portions maturing in 2017, 2022 and 2042. The issuance resulted in total proceeds, before expenses, of approximately $1.9 billion, net of underwriting fees and discounts of $14.7 million and $4.6 million, respectively. Approximately $1.1 billion of senior notes remained outstanding as of December 31, 2022, and the total remaining debt issuance costs capitalized in connection with these notes, including the underwriting fees and discounts, were $8.7 million and are being amortized over the term of the 2042 notes.

(3)On July 7, 2016, MCBC issued approximately $5.3 billion senior notes with portions maturing from July 15, 2019 through July 15, 2046 ("2016 USD Notes"). Approximately $3.8 billion remained outstanding as of December 31, 2022. At the same time in 2016, MCBC also issued EUR 800 million senior notes maturing July 15, 2024 ("2016 EUR Notes"), and Molson Coors International L.P., completed a private placement of CAD 1.0 billion senior notes maturing July 15, 2023 and July 15, 2026 ("2016 CAD Notes"). All senior notes were issued in order to partially fund the financing of the Acquisition (2016 USD Notes, 2016 EUR Notes and 2016 CAD Notes, collectively, the "2016 Notes"). Debt issuance costs capitalized in connection with these notes including underwriting fees, discounts and other financing related costs, were $31 million as of December 31, 2022 and are being amortized over the respective and remaining terms of the 2016 Notes.

(4)We entered into forward starting interest rate swap agreements to hedge interest rate volatility for a 10-year period until they 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 2016 CAD Notes, as defined above, up to the full 10-year term of the interest rate swap agreements. The amortizing loss resulted in an increase in our effective cost of borrowing compared to the stated coupon rates by 0.6% on the 2016 CAD Notes. See Note 10, "Derivative Instruments and Hedging Activities" for further details on the forward starting interest rate swaps.

(5) 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. As of December 31, 2021, we had $3.0 million in bank overdrafts and $123.1 million in bank cash related to our cross-border, cross-currency cash pool for a net positive position of $120.1 million.

The JPY facilities were early terminated in the first quarter of 2022. As of December 31, 2021, we had $3.9 million of outstanding borrowings under our JPY facilities. In addition, we have CAD, GBP and USD overdraft facilities under which we had no outstanding borrowings as of December 31, 2022 or December 31, 2021.

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, 2022 and December 31, 2021, the fair value of our outstanding long-term debt (including current portion of long-term debt) was approximately $5.9 billion and $7.7 billion, respectively. The decline in the fair value of our debt was primarily driven by rising interest rates, lower notional outstanding and foreign currency impacts. 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

We maintain a $1.5 billion revolving credit facility with a maturity date of July 7, 2024 that also allows us to issue a maximum aggregate amount of $1.5 billion in commercial paper or make other borrowings at any time at variable interest rates. We use this financing from time to time to leverage cash needs including debt repayments. During 2022, we utilized borrowings from this facility in order to fund the repayment of debt upon maturity, for working capital and for general purposes. We had no borrowings drawn on this revolving credit facility and no commercial paper borrowings as of December 31, 2022 and December 31, 2021.

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.

The maximum leverage ratio as of December 31, 2022 is 4.00x net debt to EBITDA (as defined in the revolving credit facility agreement), through maturity of the credit facility. As of December 31, 2022 and December 31, 2021, 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, 2022 rank pari-passu.

As of December 31, 2022, the aggregate principal debt maturities of long-term debt and short-term borrowings, based on foreign exchange rates as of December 31, 2022, for the next 5 years are as follows:

Year	Amount
	(In millions)
2023	$	389.8
2024	856.4
2025	—
2026	2,368.9
2027	—
Thereafter	2,900.0
Total	$	6,515.1

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, 2022		December 31, 2021		December 31, 2020
	(In millions)
Interest incurred	$	257.4	$	269.1	$	282.3
Interest capitalized	(6.8)		(8.8)		(7.7)
Interest expensed	$	250.6	$	260.3	$	274.6