filings.toolsItem 2. PROPERTIES
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Item 2. PROPERTIES
As of February 14, 2018, our major facilities were owned (unless otherwise indicated) and are as follows:
| Facility | Location | Character | ||
| U.S. Segment | ||||
| Administrative offices | Chicago, Illinois(1) | U.S. segment headquarters | ||
| Golden, Colorado | U.S. segment administrative office | |||
| Milwaukee, Wisconsin | U.S. segment administrative office | |||
| Brewery/packaging plants | Albany, Georgia(2) | Brewing and packaging | ||
| Elkton, Virginia | Brewing and packaging | |||
| Fort Worth, Texas(2) | Brewing and packaging | |||
| Golden, Colorado(2) | Brewing and packaging | |||
| Irwindale, California | Brewing and packaging | |||
| Milwaukee, Wisconsin(2) | Brewing and packaging | |||
| Trenton, Ohio(2) | Brewing and packaging | |||
| Beer distributorship | Denver, Colorado | Distribution | ||
| Container operations | Wheat Ridge, Colorado(3) | Bottling manufacturing facility | ||
| Golden, Colorado(3) | Can and end manufacturing facilities | |||
| Malting operations | Golden, Colorado | Malting | ||
| Canada Segment | ||||
| Administrative offices | Montréal, Québec | Corporate headquarters | ||
| Toronto, Ontario | Canada segment headquarters | |||
| Brewery/packaging plants | Montréal, Québec(4) | Brewing and packaging | ||
| Toronto, Ontario(4) | Brewing and packaging | |||
| Vancouver, British Columbia(5) | Brewing and packaging | |||
| Europe Segment | ||||
| Administrative offices | Prague, Czech Republic | Europe segment headquarters | ||
| Brewery/packaging plants | Apatin, Serbia(6) | Brewing and packaging | ||
| Bőcs, Hungary | Brewing and packaging | |||
| Burton-on-Trent, Staffordshire, U.K.(6)(7) | Brewing and packaging | |||
| Haskovo, Bulgaria | Brewing and packaging | |||
| Niksic, Montenegro | Brewing and packaging | |||
| Ostrava, Czech Republic | Brewing and packaging | |||
| Ploiesti, Romania(6) | Brewing and packaging | |||
| Prague, Czech Republic(6) | Brewing and packaging | |||
| Tadcaster Brewery, Yorkshire, U.K.(6) | Brewing and packaging | |||
| Zagreb, Croatia | Brewing and packaging |
| (1) | We lease the office space for our U.S. segment headquarters in Chicago, Illinois. |
| (2) | The Golden, Trenton, Albany, Fort Worth and Milwaukee breweries collectively account for approximately 75% of our U.S. production. |
| (3) | The Wheat Ridge and Golden Colorado facilities are leased from us by RMBC and RMMC, respectively. |
| (4) | The Montréal and Toronto breweries collectively account for approximately 78% of our Canada production. |
| (5) | We lease two brewing and packaging facilities in British Columbia. As part of our ongoing assessment of our Canadian supply chain network, we completed the sale of our Vancouver brewery on March 31, 2016. In conjunction |
with the sale of the brewery, we agreed to leaseback the existing property to continue operations on an uninterrupted basis while the new brewery is being constructed. We expect to incur significant capital expenditures associated with the construction of the new brewery, most of which we expect to be funded with the proceeds from the sale of the Vancouver brewery. The final closure of the brewery is currently expected to occur in the third quarter of 2019.
In further efforts to help optimize the Canada brewery network, in the third quarter of 2017 we announced a plan to build a more efficient and flexible brewery in the greater Montreal area. As a result of this decision, we have begun to develop plans to transition out of our existing Montreal brewery. The final closure of the brewery is currently expected to occur in 2021.
| (6) | The Burton-on-Trent, Prague, Ploiesti, Apatin and Tadcaster breweries collectively account for approximately 73% of our Europe production. |
| (7) | During the fourth quarter of 2015, we announced the planned closure of the Burton South brewery in the U.K., which is expected to be completed by the first quarter of 2018. We continue to own the Burton South Brewery as of December 31, 2017. |
In addition to the properties listed above, we have smaller capacity facilities, including craft breweries and cideries, in each of our segments. We lease various warehouse and office spaces throughout the United States and we own and lease six warehouses throughout Canada, excluding the Province of Quebec. In addition, we own fourteen distribution centers, lease sixteen additional distribution centers, own two warehouses and lease nine additional warehouses throughout Europe.
As a result of the implementation of total alcohol prohibition, the Bihar, India brewery is currently not operating and is idled pending any future change in law or regulation.
We also lease offices in Colorado, the location of our Corporate and International segment headquarters, as well as within various international countries in which our International segment operates. We believe our facilities are well maintained and suitable for their respective operations. In 2017, our operating facilities were not capacity constrained.
During the third quarter of 2015, MillerCoors announced plans to close its brewery in Eden, North Carolina, in an effort to optimize the brewery footprint and streamline operations for greater efficiencies. Products produced in the Eden brewery were transitioned to other breweries in the MillerCoors network. As of December 31, 2017, we continue to own the Eden, North Carolina brewery, which closed in September 2016.
During the second quarter of 2015 and fourth quarter of 2015, we completed the closure of the Alton brewery in the U.K. and our Plovdiv brewery in Bulgaria, respectively. During the third quarter of 2017, we completed the sale of land related to the Plovdiv brewery. We continue to own the Alton brewery as of December 31, 2017.
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