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UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
_______________________________________________________________
FORM 10-Q
(Mark One)
QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
For the quarterly period ended March 31, 2022
OR
TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
For the transition period from ______ to ______ .
Commission File Number: 1-14829
tap-20220331_g1.jpg
Molson Coors Beverage Company
(Exact name of registrant as specified in its charter)

Delaware
(State or other jurisdiction of incorporation or organization)
P.O. Box 4030, NH353, Golden, Colorado, USA
111 Boulevard Robert-Bourassa, 9th Floor, Montréal, Québec, Canada
(Address of principal executive offices)
84-0178360
(I.R.S. Employer Identification No.)
80401
H3C 2M1
(Zip Code)

303-279-6565 (Colorado)
514-521-1786 (Québec)
(Registrant's telephone number, including area code)
_______________________________________________________________
Securities registered pursuant to Section 12(b) of the Act:
Title of each class Trading symbolsName of each exchange on which registered
Class A Common Stock, $0.01 par value TAP.ANew York Stock Exchange
Class B Common Stock, $0.01 par value TAPNew York Stock Exchange
1.25% Senior Notes due 2024TAPNew York Stock Exchange
Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes ý    No o
Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files). Yes ý    No o
Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See the definitions of "large accelerated filer," "accelerated filer," "smaller reporting company" and "emerging growth company" in Rule 12b-2 of the Exchange Act.
Large accelerated filer ý Accelerated filer o Non-accelerated filer o Smaller reporting company  Emerging growth company 
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. o
Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes    No ý
Indicate the number of shares outstanding of each of the registrant's classes of common stock, as of April 26, 2022:
Class A Common Stock — 2,562,506 shares
Class B Common Stock — 200,526,564 shares
Exchangeable shares:
As of April 26, 2022, the following number of exchangeable shares were outstanding for Molson Coors Canada, Inc.:
Class A Exchangeable shares — 2,717,367 shares
Class B Exchangeable shares — 11,089,565 shares
The Class A exchangeable shares and Class B exchangeable shares are shares of the share capital in Molson Coors Canada Inc., a wholly-owned subsidiary of the registrant. They are publicly traded on the Toronto Stock Exchange under the symbols TPX.A and TPX.B, respectively. These shares are intended to provide substantially the same economic and voting rights as the corresponding class of Molson Coors common stock in which they may be exchanged. In addition to the registered Class A common stock and the Class B common stock, the registrant has also issued and outstanding one share each of a Special Class A voting stock and Special Class B voting stock. The Special Class A voting stock and the Special Class B voting stock provide the mechanism for holders of Class A exchangeable shares and Class B exchangeable shares to be provided instructions to vote with the holders of the Class A common stock and the Class B common stock, respectively. The holders of the Special Class A voting stock and Special Class B voting stock are entitled to one vote for each outstanding Class A exchangeable share and Class B exchangeable share, respectively, excluding shares held by the registrant or its subsidiaries, and generally vote together with the Class A common stock and Class B common stock, respectively, on all matters on which the Class A common stock and Class B common stock are entitled to vote. The Special Class A voting stock and Special Class B voting stock are subject to a voting trust arrangement. The trustee which holds the Special Class A voting stock and the Special Class B voting stock is required to cast a number of votes equal to the number of then-outstanding Class A exchangeable shares and Class B exchangeable shares, respectively, but will only cast a number of votes equal to the number of Class A exchangeable shares and Class B exchangeable shares as to which it has received voting instructions from the owners of record of those Class A exchangeable shares and Class B exchangeable shares, other than the registrant or its subsidiaries, respectively, on the record date, and will cast the votes in accordance with such instructions so received.




MOLSON COORS BEVERAGE COMPANY AND SUBSIDIARIES
INDEX
Page
2



Glossary of Terms and Abbreviations
AOCI    
Accumulated other comprehensive income (loss)
CAD    
Canadian Dollar
CZKCzech Koruna
DBRSA global credit rating agency in Toronto
EBITDAEarnings before interest, tax, depreciation and amortization
EPS    
Earnings per share
EUREuro
FASB    
Financial Accounting Standards Board
GBP    
British Pound
HRKCroatian Kuna
JPY    
Japanese Yen
Moody’s
Moody’s Investors Service Limited, a nationally recognized statistical rating organization designated by the SEC
OCIOther comprehensive income (loss)
OPEBOther postretirement benefit plans
PSUs    
Performance share units
RSD    
Serbian Dinar
RSUsRestricted stock units
SECU.S. Securities and Exchange Commission
Standard & Poor’sStandard and Poor’s Ratings Services, a nationally recognized statistical rating organization designated by the SEC
STRs
Sales-to-retailers
STWs
Sales-to-wholesalers
U.K.United Kingdom
U.S.    
United States
U.S. GAAPAccounting principles generally accepted in the U.S.
USD or $U.S. Dollar
VIEsVariable interest entities
3



Cautionary Statement Pursuant to Safe Harbor Provisions of the Private Securities Litigation Reform Act of 1995
This Quarterly Report on Form 10-Q ("this report") contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended (the "Exchange Act"). From time to time, we may also provide oral or written forward-looking statements in other materials we release to the public. Such forward-looking statements are subject to the safe harbor created by the Private Securities Litigation Reform Act of 1995.
Statements that refer to projections of our future financial performance, our anticipated growth and trends in our businesses, and other characterizations of future events or circumstances are forward-looking statements, and include, but are not limited to, statements in Part I.—Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations in this report under the heading "Items Affecting Reported Results", with respect to expectations regarding the impact of the coronavirus pandemic on our operations, liquidity, financial condition and financial results, expectations regarding future dividends, overall volume trends, consumer preferences, pricing trends, industry forces, cost reduction strategies, including our revitalization plan, expectations of cost inflation, anticipated results, expectations for funding future capital expenditures and operations, debt service capabilities, timing and amounts of debt and leverage levels, shipment levels and profitability, market share and the sufficiency of capital resources. In addition, statements that we make in this report that are not statements of historical fact may also be forward-looking statements. Words such as "expects," "intend," "goals," "plans," "believes," "continues," "may," "anticipate," "seek," "estimate," "outlook," "trends," "future benefits," "potential," "projects," "strategies," and variations of such words and similar expressions are intended to identify forward-looking statements.
Forward-looking statements are subject to risks and uncertainties that could cause actual results to be materially different from those indicated (both favorably and unfavorably). These risks and uncertainties include, but are not limited to, those described in Part II.— Item IA. "Risk Factors" in this report and those described from time to time in our past and future reports filed with the SEC, including in our Annual Report on Form 10-K for the year ended December 31, 2021 ("Annual Report"). Caution should be taken not to place undue reliance on any such forward-looking statements. Forward-looking statements speak only as of the date when made and we undertake no obligation to update any forward-looking statement, whether as a result of new information, future events or otherwise, except as required by applicable law.
Market and Industry Data
The market and industry data used in this report are based on independent industry publications, customers, trade or business organizations, reports by market research firms and other published statistical information from third parties (collectively, the “Third Party Information”), as well as information based on management’s good faith estimates, which we derive from our review of internal information and independent sources. Such Third Party Information generally states that the information contained therein or provided by such sources has been obtained from sources believed to be reliable.
4



PART I. FINANCIAL INFORMATION
ITEM 1.    FINANCIAL STATEMENTS (UNAUDITED)
MOLSON COORS BEVERAGE COMPANY AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(IN MILLIONS, EXCEPT PER SHARE DATA)
(UNAUDITED)
 Three Months Ended
 March 31, 2022March 31, 2021
Sales$2,643.3 $2,256.1 
Excise taxes(428.7)(357.7)
Net sales2,214.6 1,898.4 
Cost of goods sold(1,286.8)(1,167.4)
Gross profit927.8 731.0 
Marketing, general and administrative expenses(675.7)(542.9)
Special items, net(27.6)(10.9)
Equity income (loss)(0.1) 
Operating income (loss)224.4 177.2 
Interest income (expense), net(63.3)(65.3)
Other pension and postretirement benefits (costs), net10.6 13.0 
Other income (expense), net2.0 1.4 
Income (loss) before income taxes173.7 126.3 
Income tax benefit (expense)(36.4)(44.3)
Net income (loss)137.3 82.0 
Net (income) loss attributable to noncontrolling interests14.2 2.1 
Net income (loss) attributable to Molson Coors Beverage Company$151.5 $84.1 
  
Net income (loss) attributable to Molson Coors Beverage Company per share
Basic$0.70 $0.39 
Diluted $0.70 $0.39 
Weighted-average shares outstanding
Basic217.2 217.0 
Dilutive effect of share-based awards0.6 0.4 
Diluted217.8 217.4 
Anti-dilutive securities excluded from the computation of diluted EPS2.2 1.8 

See notes to unaudited condensed consolidated financial statements.

5



MOLSON COORS BEVERAGE COMPANY AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS)
(IN MILLIONS)
(UNAUDITED)
Three Months Ended
March 31, 2022March 31, 2021
Net income (loss) including noncontrolling interests$137.3 $82.0 
Other comprehensive income (loss), net of tax  
Foreign currency translation adjustments(10.2)10.3 
Reclassification of cumulative translation adjustment to income (loss)12.1 7.5 
Unrealized gain (loss) on derivative instruments54.1 102.7 
Reclassification of derivative (gain) loss to income (loss)0.7 1.2 
Amortization of net prior service (benefit) cost and net actuarial (gain) loss to income (loss)(0.9)0.4 
Ownership share of unconsolidated subsidiaries' other comprehensive income (loss)0.2 0.4 
Total other comprehensive income (loss), net of tax56.0 122.5 
Comprehensive income (loss)193.3 204.5 
Comprehensive (income) loss attributable to noncontrolling interests14.6 2.0 
Comprehensive income (loss) attributable to Molson Coors Beverage Company$207.9 $206.5 


See notes to unaudited condensed consolidated financial statements.

6



MOLSON COORS BEVERAGE COMPANY AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS
(IN MILLIONS, EXCEPT PAR VALUE)
(UNAUDITED)
 As of
 March 31, 2022December 31, 2021
Assets  
Current assets  
Cash and cash equivalents$358.7 $637.4 
Accounts receivable, net761.2 678.9 
Other receivables, net207.3 200.5 
Inventories, net935.8 804.7 
Other current assets, net607.6 457.2 
Total current assets2,870.6 2,778.7 
Properties, net4,210.5 4,192.4 
Goodwill6,155.0 6,152.6 
Other intangibles, net13,221.8 13,286.8 
Other assets1,263.6 1,208.5 
Total assets$27,721.5 $27,619.0 
Liabilities and equity  
Current liabilities  
Accounts payable and other current liabilities$2,873.4 $3,107.3 
Current portion of long-term debt and short-term borrowings681.9 514.9 
Total current liabilities3,555.3 3,622.2 
Long-term debt6,631.5 6,647.2 
Pension and postretirement benefits649.9 654.4 
Deferred tax liabilities2,776.6 2,704.6 
Other liabilities337.7 326.5 
Total liabilities13,951.0 13,954.9 
Commitments and contingencies (Note 12)
Molson Coors Beverage Company stockholders' equity  
Capital stock  
Preferred stock, $0.01 par value (authorized: 25.0 shares; none issued)
  
Class A common stock, $0.01 par value (authorized: 500.0 shares; issued and outstanding: 2.6 shares and 2.6 shares, respectively)
  
Class B common stock, $0.01 par value (authorized: 500.0 shares; issued: 210.3 shares and 210.1 shares, respectively)
2.1 2.1 
Class A exchangeable shares, no par value (issued and outstanding: 2.7 shares and 2.7 shares, respectively)
102.2 102.2 
Class B exchangeable shares, no par value (issued and outstanding: 11.1 shares and 11.1 shares, respectively)
417.2 417.8 
Paid-in capital6,975.6 6,970.9 
Retained earnings7,469.8 7,401.5 
Accumulated other comprehensive income (loss)(949.6)(1,006.0)
Class B common stock held in treasury at cost (9.7 shares and 9.5 shares, respectively)
(485.5)(471.4)
Total Molson Coors Beverage Company stockholders' equity13,531.8 13,417.1 
Noncontrolling interests238.7 247.0 
Total equity13,770.5 13,664.1 
Total liabilities and equity$27,721.5 $27,619.0 

See notes to unaudited condensed consolidated financial statements.
7



MOLSON COORS BEVERAGE COMPANY AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(IN MILLIONS)
(UNAUDITED)
 Three Months Ended
 March 31, 2022March 31, 2021
Cash flows from operating activities:  
Net income (loss) including noncontrolling interests$137.3 $82.0 
Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities 
Depreciation and amortization173.7 202.3 
Amortization of debt issuance costs and discounts1.6 1.8 
Share-based compensation8.5 8.3 
(Gain) loss on sale or impairment of properties and other assets, net22.4 2.8 
Unrealized (gain) loss on foreign currency fluctuations and derivative instruments, net(169.6)(122.6)
Equity (income) loss0.1  
Income tax (benefit) expense36.4 44.3 
Income tax (paid) received(3.1)(9.1)
Interest expense, excluding amortization of debt issuance costs and discounts62.2 64.1 
Interest paid(81.2)(86.6)
Change in current assets and liabilities and other(307.6)(378.2)
Net cash provided by (used in) operating activities(119.3)(190.9)
Cash flows from investing activities:  
Additions to properties(243.8)(102.5)
Proceeds from sales of properties and other assets13.2 1.1 
Other4.4 16.8 
Net cash provided by (used in) investing activities(226.2)(84.6)
Cash flows from financing activities:  
Exercise of stock options under equity compensation plans0.9 4.5 
Dividends paid(82.4) 
Payments on debt and borrowings(1.1)(0.9)
Proceeds on debt and borrowings5.0  
Purchases of treasury stock(14.1) 
Net proceeds from (payments on) revolving credit facilities and commercial paper156.3 0.5 
Change in overdraft balances and other7.9 40.9 
Net cash provided by (used in) financing activities72.5 45.0 
Cash and cash equivalents  
Net increase (decrease) in cash and cash equivalents(273.0)(230.5)
Effect of foreign exchange rate changes on cash and cash equivalents(5.7)(6.9)
Balance at beginning of year637.4 770.1 
Balance at end of period$358.7 $532.7 

See notes to unaudited condensed consolidated financial statements.
8



MOLSON COORS BEVERAGE COMPANY AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY
AND NONCONTROLLING INTERESTS
(IN MILLIONS)
(UNAUDITED)
 Molson Coors Beverage Company Stockholders' Equity 
  AccumulatedCommon stock 
 Common stockExchangeableotherheld inNon
 issuedshares issuedPaid-in-Retainedcomprehensivetreasurycontrolling
TotalClass AClass BClass AClass Bcapitalearningsincome (loss)Class Binterests
As of December 31, 2020$12,621.3 $ $2.1 $102.3 $417.8 $6,937.8 $6,544.2 $(1,167.8)$(471.4)$256.3 
Shares issued under equity compensation plan1.0 — — — — 1.0 — — — — 
Amortization of share-based compensation8.3 — — — — 8.3 — — — — 
Purchase of noncontrolling interest(0.2)— — — — — — — — (0.2)
Net income (loss) including noncontrolling interests82.0 — — — — — 84.1 — — (2.1)
Other comprehensive income (loss), net of tax122.5 — — — — — — 122.4 — 0.1 
Distributions and dividends to noncontrolling interests(0.9)— — — — — — — — (0.9)
As of March 31, 2021$12,834.0 $ $2.1 $102.3 $417.8 $6,947.1 $6,628.3 $(1,045.4)$(471.4)$253.2 

  Molson Coors Beverage Company Stockholders' Equity 
   AccumulatedCommon stock 
  Common stockExchangeableotherheld inNon
  issuedshares issuedPaid-in-Retainedcomprehensivetreasurycontrolling
 TotalClass AClass BClass AClass Bcapitalearningsincome (loss)Class Binterests
As of December 31, 2021$13,664.1 $ $2.1 $102.2 $417.8 $6,970.9 $7,401.5 $(1,006.0)$(471.4)$247.0 
Exchange of shares— — — — (0.6)0.6 — — — — 
Shares issued under equity compensation plan(4.4)— — — — (4.4)— — — — 
Amortization of share-based compensation8.5 — — — — 8.5 — — — — 
Net income (loss) including noncontrolling interests137.3 — — — — — 151.5 — — (14.2)
Other comprehensive income (loss), net of tax56.0 — — — — — — 56.4 — (0.4)
Share repurchase program(14.1)— — — — — — — (14.1)— 
Contributions from noncontrolling interests7.3 — — — — — — — — 7.3 
Distributions and dividends to noncontrolling interests(1.0)— — — — — — — — (1.0)
Dividends declared(83.2)— — — — — (83.2)— — — 
As of March 31, 2022$13,770.5 $ $2.1 $102.2 $417.2 $6,975.6 $7,469.8 $(949.6)$(485.5)$238.7 

See notes to unaudited condensed consolidated financial statements.
9



MOLSON COORS BEVERAGE COMPANY AND SUBSIDIARIES
NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
1. Basis of Presentation and Summary of Significant Accounting Policies
Unless otherwise noted in this report, any description of "we," "us" or "our" includes Molson Coors Beverage Company ("MCBC" or the "Company"), principally a holding company, and its operating and non-operating subsidiaries included within our reporting segments. Our reporting segments include Americas and EMEA&APAC. Our Americas segment operates in the U.S., Canada and various countries in the Caribbean, Latin and South America, and our EMEA&APAC segment operates in Bulgaria, Croatia, Czech Republic, Hungary, Montenegro, the Republic of Ireland, Romania, Serbia, the U.K., various other European countries and certain countries within the Middle East, Africa and Asia Pacific.
Unless otherwise indicated, information in this report is presented in USD and comparisons are to comparable prior periods. Our primary operating currencies, other than the USD, include the CAD, the GBP, and our Central European operating currencies such as the EUR, CZK, HRK and RSD.
The accompanying unaudited condensed consolidated financial statements reflect all adjustments which are necessary for a fair statement of the financial position, results of operations and cash flows for the periods presented in accordance with U.S. GAAP. Such unaudited condensed consolidated financial statements have been prepared in accordance with the instructions to Form 10-Q pursuant to the rules and regulations of the SEC. Certain information and footnote disclosures normally included in financial statements prepared in accordance with U.S. GAAP have been condensed or omitted pursuant to such rules and regulations.
These unaudited condensed consolidated financial statements should be read in conjunction with our Annual Report on Form 10-K for the year ended December 31, 2021, and have been prepared on a consistent basis with the accounting policies described in Note 1 of the Notes to the Audited Consolidated Financial Statements included in our Annual Report, except as noted in Note 2, "New Accounting Pronouncements".
The results of operations for the three months ended March 31, 2022 are not necessarily indicative of the results that may be achieved for the full year or any other future period.
Coronavirus Global Pandemic
We have been actively monitoring the impact of the coronavirus pandemic since it started at the end of the first quarter of 2020. The extent to which our operations will continue to be impacted by the coronavirus pandemic will depend largely on future developments, which are highly uncertain and cannot be accurately predicted, including, but not limited to, the level of governmental or societal orders or restrictions on public gatherings and on-premise venues including any vaccine mandates or testing requirements, the severity and duration of the coronavirus pandemic by market including outbreaks of variants, changes in consumer behavior, the rate of vaccination and the efficacy of vaccines against the coronavirus and related variants. We continue to actively monitor the ongoing evolution of the coronavirus pandemic and resulting impacts to our business. See Part I.—Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations in this report, under the heading "Items Affecting Reported Results" for further discussion.
Dividends
On February 22, 2022, our Company's Board of Directors declared a cash dividend of $0.38 per share, paid on March 18, 2022, to shareholders of Class A and Class B common stock. Shareholders of exchangeable shares received the CAD equivalent of dividends declared on Class A and Class B common stock, equal to CAD 0.48 per share.
Share Repurchase Program
On February 17, 2022, our Company's Board of Directors approved a share repurchase program up to an aggregate of $200 million of our Company's Class B common stock through March 31, 2026, with repurchases primarily intended to offset annual employee equity award grants. For the three months ended March 31, 2022, we repurchased 280,000 shares under the share repurchase program at a weighted average price of $50.40 per share for an aggregate value of $14.1 million.
Non-Cash Activity
Non-cash activity includes non-cash issuances of share-based awards, as well as non-cash investing activities related to movements in our guarantee of indebtedness of certain equity method investments. See Note 4, "Investments" for further discussion. We also had non-cash activities related to capital expenditures incurred but not yet paid of $139.9 million and $116.2 million during the three months ended March 31, 2022 and March 31, 2021, respectively.
In June 2021, we rolled forward our July 2021 $250.0 million forward starting interest rate swap to May 2022 through a cashless settlement. The unrealized loss on the 2021 forward starting interest rate swap at the time of the transaction was
10



factored into the effective interest rate assigned to the new May 2022 forward starting interest rate swap that was settled in late April 2022. See Note 11, "Derivative Instruments and Hedging Activities" for further details.
As of March 31, 2022, we recorded a non-cash transaction related to the establishment of an accrued liability of $56.0 million as the best estimate of probable loss in the Keystone litigation case based on the jury verdict.
Other than the activity mentioned above and the supplemental non-cash activity related to the recognition of leases further discussed in Note 13, "Leases," there was no other significant non-cash activity during the three months ended March 31, 2022 and March 31, 2021, respectively.
Share-Based Compensation
During the first quarter of 2022 and 2021, we granted stock options, RSUs and PSUs to certain officers and other eligible employees, and recognized share-based compensation expense of $8.5 million and $8.3 million during the three months ended March 31, 2022 and March 31, 2021, respectively.
2. New Accounting Pronouncements
New Accounting Pronouncements Not Yet Adopted
In November 2021, the FASB issued authoritative guidance intended to provide consistent and transparent disclosures around government assistance by requiring disclosures of the type of government assistance, our accounting for the government assistance and the effect on our financial statements. This guidance is effective for us in our annual report for the year ended December 31, 2022. We can either adopt the amendments in this guidance prospectively or retrospectively. We are currently evaluating the impact of this guidance and do not expect it will have a material impact on our consolidated financial statements as the guidance impacts disclosures only.
New Accounting Pronouncements Recently Adopted
In March 2020, the FASB issued authoritative guidance which provides optional expedients and exceptions for applying U.S. GAAP to contracts, hedging relationships and other transactions affected by reference rate reform if certain criteria are met. The amendments apply only to contracts, hedging relationships and other transactions that reference the London Interbank Offered Rate ("LIBOR") or another reference rate expected to be discontinued because of reference rate reform and are effective for all entities upon issuance, March 12, 2020 through December 31, 2022. The guidance permits a company to elect certain optional expedients and exceptions when affected by the changes in reference rate reform. We have elected to adopt optional expedients impacting our derivative instruments with maturity dates extending beyond the expected discontinuance date of LIBOR. In addition, in October 2021, we amended our revolving credit facility to replace LIBOR with designated replacement rates for any future borrowings denominated in EUR or GBP. The partial adoption of, and future elections under Accounting Standards Update ("ASU") 2020-04, Reference Rate Reform (Topic 848): Facilitation of the Effects of Reference Rate Reform on Financial Reporting, and ASU 2021-01, Reference Rate Reform (Topic 848): Scope, did not and are not expected to have a material impact on our accounting policies or unaudited condensed consolidated financial statements. We will continue to evaluate the impact of reference rate reform on our other contracts and assess the impacts of adopting incremental portions of this guidance on our financial statements.
Other than the items noted above, there have been no new accounting pronouncements not yet effective or adopted in the current year that we believe have a significant impact, or potential significant impact, to our unaudited condensed consolidated financial statements.
3. Segment Reporting
Our reporting segments are based on the key geographic regions in which we operate and include the Americas and EMEA&APAC segments. Our Americas segment operates in the U.S., Canada and various countries in the Caribbean, Latin and South America and our EMEA&APAC segment operates in Bulgaria, Croatia, Czech Republic, Hungary, Montenegro, the Republic of Ireland, Romania, Serbia, the U.K., various other European countries and certain countries within the Middle East, Africa and Asia Pacific.
We also have certain activity that is not allocated to our segments, which has been reflected as “Unallocated” below. Specifically, "Unallocated" activity primarily includes financing-related costs such as interest expense and income, foreign exchange gains and losses on intercompany balances related to financing and other treasury-related activities, and the unrealized changes in fair value on our commodity swaps not designated in hedging relationships recorded within cost of goods sold, which are later reclassified when realized to the segment in which the underlying exposure resides. Additionally, only the service cost component of net periodic pension and OPEB cost is reported within each operating segment, and all other components remain unallocated.
11



Summarized Financial Information
No single customer accounted for more than 10% of our consolidated net sales for the three months ended March 31, 2022 or March 31, 2021.
Consolidated net sales represent sales to third-party external customers less excise taxes. Inter-segment transactions impacting net sales and income (loss) before income taxes eliminate upon consolidation and are primarily related to the Americas segment sales to, and royalties received from, the EMEA&APAC segment.
The following tables present net sales and income (loss) before income taxes by segment:
Three Months Ended
March 31, 2022March 31, 2021
(In millions)
Americas$1,836.2 $1,692.0 
EMEA&APAC381.2 206.9 
Inter-segment net sales eliminations(2.8)(0.5)
Consolidated net sales$2,214.6 $1,898.4 
Three Months Ended
March 31, 2022March 31, 2021
(In millions)
Americas$87.1 $144.2 
EMEA&APAC(32.2)(89.4)
Unallocated118.8 71.5 
Consolidated income (loss) before income taxes$173.7 $126.3 
Income (loss) before income taxes includes the impact of special items, net. Refer to Note 5, "Special Items" for further discussion.
The following table presents total assets by segment:
As of
March 31, 2022December 31, 2021
(In millions)
Americas$23,880.5 $23,653.5 
EMEA&APAC3,841.0 3,965.5 
Consolidated total assets$27,721.5 $27,619.0 
4. Investments
Our investments include both equity method and consolidated investments. Those entities identified as VIEs have been evaluated to determine whether we are the primary beneficiary. The VIEs included under "Consolidated VIEs" below are those for which we have concluded that we are the primary beneficiary and accordingly, we have consolidated these entities. Our consolidated VIEs held $5.0 million of debt as of March 31, 2022 and none as of December 31, 2021. We have not provided any financial support to any of our VIEs during the year that we were not previously contractually obligated to provide. Amounts due to and due from our equity method investments are recorded as affiliate accounts payable and affiliate accounts receivable.
Authoritative guidance related to the consolidation of VIEs requires that we continually reassess whether we are the primary beneficiary of VIEs in which we have an interest. As such, the conclusion regarding the primary beneficiary status is subject to change and we continually evaluate circumstances that could require consolidation or deconsolidation. Our consolidated VIEs are Cobra Beer Partnership, Ltd. ("Cobra U.K."), Rocky Mountain Metal Container ("RMMC"), Rocky Mountain Bottle Company ("RMBC") and Truss LP ("Truss"), as well as other immaterial entities. Our unconsolidated VIEs are Brewers Retail Inc. ("BRI"), Brewers Distributor Ltd. ("BDL"), The Yuengling Company LLC ("TYC"), as well as other immaterial investments.
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Both BRI and BDL have outstanding third party debt which is guaranteed by their respective shareholders. As a result, we had a guarantee liability of $38.7 million and $38.1 million recorded as of March 31, 2022 and December 31, 2021, respectively, which is presented within accounts payable and other current liabilities on the unaudited condensed consolidated balance sheets and represents our proportionate share of the outstanding balance of these debt instruments. The carrying value of the guarantee liability equals fair value, which considers an adjustment for our own non-performance risk and is considered a Level 2 measurement. The offset to the guarantee liability was recorded as an adjustment to our respective equity method investment within the unaudited condensed consolidated balance sheets. The resulting change in our equity method investments during the year due to movements in the guarantee represents a non-cash investing activity.
Consolidated VIEs
The following summarizes the assets and liabilities of our consolidated VIEs (including noncontrolling interests):
 As of
 March 31, 2022December 31, 2021
 Total AssetsTotal LiabilitiesTotal AssetsTotal Liabilities
 (In millions)
RMMC/RMBC$237.0 $23.0 $204.9 $19.1 
Other$55.8 $15.7 $70.8 $14.8 
5. Special Items
We incurred charges or realized benefits that either we do not believe to be indicative of our core operations, or we believe are significant to our current operating results warranting separate classification. As such, we separately classified these charges (benefits) as special items.
Three Months Ended
March 31, 2022March 31, 2021
(In millions)
Employee-related charges
Restructuring$0.3 $3.6 
Impairments or asset abandonment charges
Americas - Asset abandonment0.9 2.9 
Americas - Impairment losses(1)
28.6  
EMEA&APAC - Asset abandonment0.1 2.1 
Termination fees and other (gains) losses
Americas(3.2)0.4 
EMEA&APAC0.9 1.9 
Total Special items, net$27.6 $10.9 
(1)During the three months ended March 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.
Restructuring Activities
As part of our revitalization plan, announced in the fourth quarter of 2019, we established Chicago, Illinois as our Americas segment operational headquarters, closed our office in Denver, Colorado and consolidated certain administrative functions into our other existing office locations. As of December 31, 2021, restructuring charges associated with this plan were substantially complete. Refer to Part II - Item 8. Financial Statements and Supplementary Data, Note 7. "Special Items" in our Annual Report for further details of our revitalization plan. In addition, our restructuring activities include other strategic exit activities such as the disposal or wind down of certain brewery locations.
There were no material changes to our restructuring activities since December 31, 2021, as reported in Part II - Item 8. Financial Statements and Supplementary Data, Note 7, "Special Items" in our Annual Report. 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.
13



The accrued restructuring balances as of March 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.
 AmericasEMEA&APACTotal
 (In millions)
As of December 31, 2021$10.9 $1.5 $12.4 
Charges incurred and changes in estimates0.3  0.3 
Payments made(3.1)(0.3)(3.4)
Foreign currency and other adjustments0.1 (0.1) 
As of March 31, 2022$8.2 $1.1 $9.3 
 AmericasEMEA&APACTotal
 (In millions)
As of December 31, 2020$24.5 $2.0 $26.5 
Charges incurred and changes in estimates3.2 0.4 3.6 
Payments made(10.9)(0.4)(11.3)
Foreign currency and other adjustments0.1  0.1 
As of March 31, 2021$16.9 $2.0 $18.9 
6. Income Tax
Three Months Ended
March 31, 2022March 31, 2021
Effective tax rate21 %35 %
The decrease to the effective tax rate for the three months ended March 31, 2022 is primarily due to a decrease in net discrete tax expense. We recognized $0.9 million discrete tax benefit in the three months ended March 31, 2022 and $18.1 million net discrete tax expense in the prior year.

Our tax rate can be more or less volatile and may change with, among other things, the amount and source of pre-tax income or loss, our ability to utilize foreign tax credits, excess tax benefits or deficiencies from share-based compensation, changes in tax laws, and the movement of liabilities established pursuant to accounting guidance for uncertain tax positions as statutes of limitations expire, positions are effectively settled, or when additional information becomes available. There are proposed or pending tax law changes in various jurisdictions and other changes to regulatory environments in countries in which we do business that, if enacted, could have an impact on our effective tax rate.
7. Goodwill and Intangible Assets
Goodwill
The change in the carrying amount of goodwill for the Americas segment is presented in the table below.
Americas
(In millions)
Balance as of December 31, 2021$6,152.6 
Foreign currency translation2.4 
Balance as of March 31, 2022$6,155.0 
The gross amount of goodwill totaled approximately $8.3 billion as of March 31, 2022 and $8.4 billion as of December 31, 2021. Accumulated impairment losses totaled approximately $2.2 billion as of both March 31, 2022 and December 31, 2021. Accumulated impairment losses are comprised of impairments taken on both the EMEA&APAC and the Americas reporting units.
As of the date of our annual impairment test, performed as of October 1, 2021, the Americas reporting unit goodwill balance was considered at risk of future impairment in the event of significant unfavorable changes in assumptions including the forecasted cash flows (including company-specific risks like the performance of our above premium transformation efforts and overall market performance of new innovations, along with macro-economic risks such as the continued prolonged weakening of economic conditions and cost inflation, or significant unfavorable changes in tax rates, environmental or other
14



regulations, including interpretations thereof), terminal growth rates, market multiples and/or weighted-average cost of capital utilized in the discounted cash flows analyses. For testing purposes of our reporting unit, management's best estimates of the expected future results are the primary driver in determining the fair value. The fair value is largely impacted by the continued perceived risk of realizing management's revitalization efforts and the ongoing impacts from the coronavirus pandemic. We continue to build on the strength of our iconic core brands, grow our above premium portfolio and expand beyond the beer aisle in the Americas segment. While the preliminary results of executing on these strategies are promising, including the increasing proportion of our above premium portfolio, the growth targets included in the forecasted future cash flows are inherently at risk given that the strategies are still in progress. The uncertainty around the ongoing impacts of the coronavirus pandemic including governmental or societal impositions on bars and restaurants and restrictions on public gatherings that limit many on-premise locations to operate at full capacity if at all have negatively impacted the forecasted future cash flows of the reporting unit. Lastly, cost inflation for certain inputs could put pressure on achieving key margin and cash flow projections into the future.
We determined that there was no triggering event that occurred during the first quarter of 2022 that would indicate the carrying value of our goodwill 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 March 31, 2022:
Useful lifeGrossAccumulated
amortization
Net
 (Years)(In millions)
Intangible assets subject to amortization    
Brands
 10 - 50
$5,074.7 $(1,315.3)$3,759.4 
License agreements and distribution rights
 15 - 20
205.9 (108.9)97.0 
Other
 3 - 40
98.3 (33.3)65.0 
Intangible assets not subject to amortization    
Brands Indefinite8,183.8 — 8,183.8 
Distribution networks Indefinite809.0 — 809.0 
Other Indefinite307.6 — 307.6 
Total $14,679.3 $(1,457.5)$13,221.8 
The following table presents details of our intangible assets, other than goodwill, as of December 31, 2021:
Useful lifeGrossAccumulated
amortization
Net
 (Years)(In millions)
Intangible assets subject to amortization:    
Brands
10 - 50
$5,081.8 $(1,267.1)$3,814.7 
License agreements and distribution rights
15 - 20
206.8 (107.2)99.6 
Other
3 - 40
98.5 (32.0)66.5 
Intangible assets not subject to amortization:    
BrandsIndefinite8,197.9 — 8,197.9 
Distribution networksIndefinite800.5 — 800.5 
OtherIndefinite307.6 — 307.6 
Total $14,693.1 $(1,406.3)$13,286.8 
The changes in the gross carrying amounts of intangible assets from December 31, 2021 to March 31, 2022 are primarily driven by the impact of foreign exchange rates, as a significant amount of intangible assets are denominated in foreign currencies.
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Based on foreign exchange rates as of March 31, 2022, the estimated future amortization expense of intangible assets is as follows:
Fiscal yearAmount
(In millions)
2022 - remaining$157.9 
2023$209.8 
2024$208.5 
2025$208.4 
2026$189.9 
Amortization expense of intangible assets was $53.3 million and $54.5 million for the three months ended March 31, 2022 and March 31, 2021, respectively. This expense is primarily presented within marketing, general and administrative 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, 2021, the fair value of all indefinite-lived brands were all sufficiently in excess of their respective carrying values.
No triggering events occurred during the first quarter of 2022 that would indicate the carrying value of these indefinite-lived assets was greater than their fair value.
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 10, "Goodwill and Intangible Assets" in our Annual Report, and represent Level 3 measurements.
Overall Considerations
While historical performance and current expectations have resulted in fair values of our Americas reporting unit and indefinite-lived intangible assets equal to or in excess of carrying values, if our assumptions are not realized, it is possible that an impairment charge may need to be recorded in the future.
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8. Debt
Debt Obligations
As of
 March 31, 2022December 31, 2021
 (In millions)
Long-term debt
CAD 500 million 2.84% notes due July 2023
$399.8 $395.7 
CAD 500 million 3.44% notes due July 2026
399.8 395.7 
$500 million 3.5% notes due May 2022(1)
500.2 500.9 
$2.0 billion 3.0% notes due July 2026
2,000.0 2,000.0