Other Operating Income (Expense), net

12 Months Ended

Dec. 31, 2022

Unusual or Infrequent Items, or Both [Abstract]

We have recorded incurred charges or realized benefits that we believe are significant to our current operating results warranting separate classification in other operating income (expense), net.

As of December 31, 2022, we modified our presentation of the consolidated statements of operations to replace the former "Special items, net" line item with "Other operating income (expense), net." In addition, goodwill impairment, which had previously been included in "Special items, net," has been reclassified to a separate line titled "Goodwill impairment." The consolidated statements of operations for the years ended December 31, 2021 and December 31, 2020 were reclassified to reflect this change in presentation only.


	For the years ended
	December 31, 2022		December 31, 2021		December 31, 2020
	(In millions)
Restructuring
Employee-related charges(1)	$	(6.0)	$	(11.7)	$	(67.6)
Asset abandonment and other restructuring costs(2)(3)	(3.1)		(25.9)		(119.5)

Intangible and tangible asset impairments, excluding goodwill(4)	(36.3)		(13.5)		(71.5)

Gains and (losses) on other disposals(5)	6.8		6.6		2.7

Other operating income (expense), net	$	(38.6)	$	(44.5)	$	(255.9)

(1)See the restructuring section within this footnote for a summary of our restructuring activities.

(2)A significant portion of asset abandonment and other restructuring costs consists of accelerated depreciation, which is in excess of normal depreciation. There was no accelerated depreciation recorded to Other operating income (expense), net for the year ended December 31, 2022 and $15.4 million and $112.3 million recorded to Other operating income (expense), net for the years ended December 31, 2021 and 2020, respectively.

During the years ended December 31, 2021 and December 31, 2020, we incurred accelerated depreciation related to the Montreal brewery closure which occurred during the fourth quarter of 2021. In addition, during the year ended December 31, 2021, we incurred accelerated depreciation for our Burtonwood and Japan locations and during the year ended December 31, 2020, we incurred accelerated depreciation for our Irwindale brewery.

(3)In January 2020, we announced plans to cease production at our Irwindale, California brewery. On May 4, 2020, Pabst exercised its option to purchase the Irwindale brewery, including plant, equipment and machinery and the underlying land for $150 million and the transaction was completed in the fourth quarter of 2020. Charges associated with the brewery closure for the year ended December 31, 2020 totaled $117.7 million, excluding the fourth quarter of 2020 gain on sale of the brewery of $2.1 million. The charges for the year ended December 31, 2020 primarily consisted of accelerated depreciation, of $96.0 million and employee related costs of retention and severance of $16.5 million.

(4)During the year ended December 31, 2022, we identified a triggering event related to the Truss joint venture asset group within our Americas segment and recognized an impairment loss of $28.6 million, of which $12.1 million was attributable to the noncontrolling interest. The asset group was measured at fair value primarily using a market approach with Level 3 inputs.

During the year ended December 31, 2021, we recognized an impairment loss of $13.5 million related to the held for sale classification of the remaining portion of our India business.

During 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 and aggregate impairment losses of $22.6 million related to those regional craft brand definite-lived tangible assets in our Americas segment. The estimates and assumptions used to determine the fair value represent Level 3 measurements. In addition, 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 EMEA&APAC 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. Also in our EMEA&APAC segment, we incurred impairment losses as a result of small brewery closures in Europe as a result of the ongoing impact of the coronavirus pandemic. See Note 6, "Goodwill and Intangible Assets" for further discussion.

(5)The former Alton brewery site in the U.K. was divided into tranches with one tranche selling in the third quarter of 2021, resulting in a gain of $11.4 million and another tranche selling in the third quarter of 2022 resulting in a gain of $4.9 million.

In addition, in 2021 we recognized a loss of $2.7 million on the sale of a disposal group within our India business. The loss included the reclassification of the associated cumulative foreign currency translation adjustment losses from AOCI into other operating income (expense), net at the time of sale. See Note 15, "Accumulated Other Comprehensive Income (Loss)" for further details.

Restructuring Activities

During the fourth quarter of 2019, as part of our revitalization plan, we made the determination to establish Chicago, Illinois as our Americas segment operational headquarters, close our office in Denver, Colorado and consolidate certain administrative functions into our other existing office locations. The restructuring actions related to the revitalization plan were substantially complete as of December 31, 2021. After taking into account all changes in each of the business units, including the EMEA&APAC segment, the revitalization plan has reduced employment levels, in aggregate, by approximately 600 employees globally.

In connection with these consolidation activities, we incurred cash and non-cash restructuring charges related to severance, retention and transition costs, employee relocation, non-cash asset related costs, lease impairment and exit costs in connection with our office lease in Denver, Colorado, and other transition activities, the majority of which were cash charges that we began recognizing in the fourth quarter of 2019. During 2021 and 2020, we recognized severance and retention cash charges of $4.0 million and $35.6 million, respectively, bringing the aggregate of such charges to approximately $81 million in total since the plan was initiated. Employee relocation charges were recognized in the period incurred and totaled $3.4 million and $11.0 million in 2021 and 2020, respectively. Additionally, during 2020, we recognized aggregate impairment losses of $7.6 million, related to the closure of the office facility in Denver, Colorado, including our lease right-of-use asset, in light of the sublease market outlook during such periods as a result of the coronavirus pandemic. No further impairment was recorded as a result of signing the sublease agreements during the second quarter of 2021.

In addition to our revitalization plan, our restructuring also includes other strategic exit activities such as the disposal or wind down of certain brewery locations. We continually evaluate our cost structure and seek opportunities for further efficiencies and cost savings as part of ongoing and new initiatives. As such, we 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 as of December 31, 2022 represent expected future cash payments required to satisfy our remaining obligations, the majority of which we expect to be paid in the next 12 months.


	Americas		EMEA&APAC		Total
	(In millions)
Balance as of December 31, 2019	$	42.6	$	4.5	$	47.1
Charges incurred and changes in estimates	59.1		8.5		67.6
Payments made	(77.3)		(11.1)		(88.4)
Foreign currency and other adjustments	0.1		0.1		0.2
Balance as of December 31, 2020	$	24.5	$	2.0	$	26.5
Charges incurred and changes in estimates	10.1		1.6		11.7
Payments made	(23.7)		(2.0)		(25.7)

Foreign currency and other adjustments	—		(0.1)		(0.1)
Balance as of December 31, 2021	$	10.9	$	1.5	$	12.4
Charges incurred and changes in estimates	(0.5)		6.0		5.5
Payments made	(6.5)		(1.3)		(7.8)

Foreign currency and other adjustments	(0.3)		0.2		(0.1)
Balance as of December 31, 2022	$	3.6	$	6.4	$	10.0

The charges recognized in the above rollforward of our reserves for restructuring do not include items charged directly to expense such as accelerated depreciation and accelerated amortization and periodic exit costs that are recognized as incurred as they are not reflected in our restructuring and exit cost reserves on our consolidated balance sheets.