Goodwill and Intangible Assets

6 Months Ended

Jun. 30, 2024

Goodwill and Intangible Assets Disclosure [Abstract]

Goodwill

The changes in the carrying value of goodwill is presented in the table below by segment.


	Americas		EMEA&APAC		Consolidated(1)
	(In millions)


Balance as of December 31, 2023	$	5,325.3	$	—	$	5,325.3



Foreign currency translation, net	(3.4)		—		(3.4)



Balance as of June 30, 2024	$	5,321.9	$	—	$	5,321.9

(1)Accumulated impairment losses for the Americas segment was $1,513.3 million as of June 30, 2024 and December 31, 2023. The EMEA&APAC goodwill balance was fully impaired during the year ended December 31, 2020 with an accumulated impairment loss of $1,484.3 million.

As of the date of our annual impairment test performed as of October 1, 2023, the fair value of the Americas reporting unit goodwill balance was in excess of its carrying value by slightly less than 15%, and as such, the reporting unit continues to be at heightened risk of future impairment in the event of significant unfavorable changes in assumptions. We continue to focus on growing our core power brands net sales, aggressively premiumizing our portfolio and scaling and expanding beyond beer. While progress has been made on these strategies over recent years, including the strengthening of our core power brands, the growth targets included in management’s forecasted future cash flows are inherently at risk given that the strategies are still in progress. Additionally, the fair value determinations are sensitive to changes in the beer industry environment, broader macroeconomic conditions and market multiples or discount rates that could negatively impact future analyses, including the impacts of cost inflation, further increases to interest rates and other external industry factors impacting our business.

We determined that there was no triggering event that occurred during the six months ended June 30, 2024 that would indicate the carrying value of our Americas reporting unit was greater than its fair value.

Intangible Assets, Other than Goodwill

The following table presents details of our intangible assets, other than goodwill, as of June 30, 2024:


	Useful life	Gross		Accumulated amortization		Net
	(Years)	(In millions)
Intangible assets subject to amortization
Brands	10 - 50	$	4,934.2	$	(1,711.7)	$	3,222.5
License agreements and distribution rights	10 - 20	202.8		(119.3)		83.5
Other	5 - 40	84.6		(26.8)		57.8
Intangible assets not subject to amortization
Brands	Indefinite	7,982.6		—		7,982.6
Distribution networks	Indefinite	739.5		—		739.5
Other	Indefinite	307.6		—		307.6
Total		$	14,251.3	$	(1,857.8)	$	12,393.5

The following table presents details of our intangible assets, other than goodwill, as of December 31, 2023:


	Useful life	Gross		Accumulated amortization		Net
	(Years)	(In millions)
Intangible assets subject to amortization
Brands	10 - 50	$	5,029.2	$	(1,634.4)	$	3,394.8
License agreements and distribution rights	10 - 20	204.9		(117.6)		87.3
Other	5 - 40	84.8		(25.8)		59.0
Intangible assets not subject to amortization
Brands	Indefinite	8,002.0		—		8,002.0
Distribution networks	Indefinite	763.9		—		763.9
Other	Indefinite	307.6		—		307.6
Total		$	14,392.4	$	(1,777.8)	$	12,614.6

The changes in the gross carrying amounts of intangible assets from December 31, 2023 to June 30, 2024 were primarily driven by the impact of foreign exchange rates, as a significant amount of intangible assets, other than goodwill, are denominated in foreign currencies.

Based on foreign exchange rates as of June 30, 2024, the estimated future amortization expense of intangible assets was as follows:


Fiscal year	Amount
	(In millions)
2024 - remaining	$	104.3
2025	$	208.6
2026	$	190.1
2027	$	125.6
2028	$	124.1

Amortization expense of intangible assets was $52.2 million and $51.4 million for the three months ended June 30, 2024 and June 30, 2023, respectively, and $104.6 million and $102.5 million for the six months ended June 30, 2024 and June 30, 2023, respectively. This expense was presented within MG&A expenses in our unaudited condensed consolidated statements of operations.

As of the date of our annual impairment test of indefinite-lived intangible assets, performed as of October 1, 2023, the carrying value of the Staropramen family of brands in EMEA&APAC was determined to be in excess of its fair value such that an impairment loss was recorded during the three months ended December 31, 2023. As this was a partial impairment, the intangible asset is considered to be at a heightened risk of future impairment in the event of significant unfavorable changes in assumptions, including forecasted future cash flows based on execution of strategic initiatives for expansion and distribution of the brand, as well as discount rates and other macroeconomic factors.

The fair value of the Coors brands in the Americas, the Miller brands in the U.S. and the Carling brands in EMEA&APAC all exceeded their respective carrying values by over 15% as of the October 1, 2023 annual testing date.

No triggering events were identified during the six months ended June 30, 2024 that would indicate the carrying values of our indefinite-lived or definite-lived intangible assets were greater than their fair values.

Fair Value Assumptions

Fair value determinations require considerable judgment and are sensitive to changes in underlying assumptions and factors. The key assumptions used to derive the estimated fair values of our reporting units and indefinite-lived intangible assets are discussed in Part II.—Item 8. Financial Statements, Note 6, "Goodwill and Intangible Assets" in our Annual Report, and represent Level 3 measurements.