v3.20.2
Special Items (Tables)
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6 Months Ended |
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Unusual or Infrequent Items, or Both [Abstract] |
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Special items recorded by segment |
| | | | | | | | | | | | | | | | | | | | | | | | | Three Months Ended | | | | Six Months Ended | | | | June 30, 2020 | | June 30, 2019 | | June 30, 2020 | | June 30, 2019 | | (In millions) | | | | | | | Employee-related charges | | | | | | | | Restructuring | $ | 20.8 | | | $ | 2.6 | | | $ | 52.9 | | | $ | 6.3 | | Impairments or asset abandonment charges | | | | | | | | North America - Asset abandonment(1) | 35.7 | | | 8.5 | | | 89.9 | | | 16.9 | | North America - Impairment losses | 7.6 | | | — | | | 7.6 | | | — | | Europe - Asset abandonment | 0.2 | | | — | | | 0.5 | | | 0.6 | | | | | | | | | | Termination fees and other (gains) losses | | | | | | | | North America(2) | — | | | (61.0) | | | — | | | (60.8) | | Europe | — | | | — | | | — | | | 0.1 | | Total Special items, net | $ | 64.3 | | | $ | (49.9) | | | $ | 150.9 | | | $ | (36.9) | |
(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 such purchase is expected to be completed in the fourth quarter of 2020, subject to the satisfaction of certain customary closing conditions. Charges associated with the planned brewery closure for the three and six months ended June 30, 2020 totaled $40.3 million and $98.3 million, respectively, and consist primarily of accelerated depreciation in excess of normal depreciation of $33.5 million and $83.0 million, respectively. Charges also include employee related costs of $7.5 million and $14.8 million, recognized during the three and six months ended June 30, 2020, respectively, which are included within the restructuring line above. We will continue to incur special charges during each reporting period through the expected sale of the brewery in the fourth quarter of 2020. Remaining net special charges associated with the planned closure are expected to be approximately $10 million to $15 million, consisting primarily of accelerated depreciation charges. However, this estimated range contains significant uncertainty, and actual results could differ materially from these estimates due to uncertainty regarding the ultimate net cost associated with the disposition of assets and restructuring charges. Separately, during the three and six months ended June 30, 2020 and June 30, 2019 we incurred asset abandonment charges, consisting primarily of accelerated depreciation in excess of normal depreciation related to the closure of the Vancouver brewery, which occurred in the third quarter of 2019, and the planned closure of the Montreal brewery, 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 21 million, through final closure of the Montreal brewery. 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. (2) During the second quarter of 2019, we completed the sale of the existing Montreal brewery property for $96.2 million (CAD 126.0 million) and recognized a gain of $61.3 million.
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Change in the restructuring accrual |
The accrued restructuring balances as of June 30, 2020 represent expected future cash payments required to satisfy our remaining obligations to terminated employees, the majority of which we expect to be paid in the next 12 months. | | | | | | | | | | | | | | | | | | | North America | | Europe | | Total | | (In millions) | | | | | As of December 31, 2019 | $ | 42.6 | | | $ | 4.5 | | | $ | 47.1 | | Charges incurred | 47.8 | | | 8.0 | | | 55.8 | | Payments made | (39.5) | | | (9.2) | | | (48.7) | | Changes in estimates | (2.1) | | | (0.8) | | | (2.9) | | Foreign currency and other adjustments | (0.5) | | | (0.1) | | | (0.6) | | As of June 30, 2020 | $ | 48.3 | | | $ | 2.4 | | | $ | 50.7 | |
| | | | | | | | | | | | | | | | | | | North America | | Europe | | Total | | (In millions) | | | | | As of December 31, 2018 | $ | 24.5 | | | $ | 1.1 | | | $ | 25.6 | | Charges incurred and changes in estimates | 1.9 | | | 4.4 | | | 6.3 | | Payments made | (18.7) | | | (3.0) | | | (21.7) | | Foreign currency and other adjustments | 0.1 | | | — | | | 0.1 | | As of June 30, 2019 | $ | 7.8 | | | $ | 2.5 | | | $ | 10.3 | |
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- DefinitionTabular disclosure of costs incurred for restructuring including, but not limited to, exit and disposal activities, remediation, implementation, integration, asset impairment, and charges against earnings from the write-down of assets.
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- DefinitionTabular disclosure of the nature and financial statement effect of an event or transaction that is unusual in nature or infrequent in occurrence, or both.
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