filings.toolsItem 1. FINANCIAL STATEMENTS (UNAUDITED)
123K characters. Original on sec.gov · Markdown
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 | Nine Months Ended | ||||||||||||||||||||||
| September 30, 2025 | September 30, 2024 | September 30, 2025 | September 30, 2024 | ||||||||||||||||||||
| Sales | $ | 3,484.3 | $ | 3,603.3 | $ | 9,914.5 | $ | 10,490.7 | |||||||||||||||
| Excise taxes | (510.8) | (560.6) | (1,436.1) | (1,599.3) | |||||||||||||||||||
| Net sales | 2,973.5 | 3,042.7 | 8,478.4 | 8,891.4 | |||||||||||||||||||
| Cost of goods sold | (1,800.0) | (1,840.2) | (5,172.1) | (5,395.5) | |||||||||||||||||||
| Gross profit | 1,173.5 | 1,202.5 | 3,306.3 | 3,495.9 | |||||||||||||||||||
| Marketing, general and administrative expenses | (686.7) | (684.7) | (2,033.0) | (2,067.8) | |||||||||||||||||||
| Goodwill impairment | (3,645.7) | — | (3,645.7) | — | |||||||||||||||||||
| Other operating income (expense), net | (275.2) | (65.8) | (300.3) | (59.4) | |||||||||||||||||||
| Equity income (loss) | 3.0 | (0.8) | 11.5 | (3.6) | |||||||||||||||||||
| Operating income (loss) | (3,431.1) | 451.2 | (2,661.2) | 1,365.1 | |||||||||||||||||||
| Interest income (expense), net | (56.0) | (93.1) | (171.1) | (192.7) | |||||||||||||||||||
| Other pension and postretirement benefit (cost), net | 3.5 | (26.6) | 10.8 | (11.9) | |||||||||||||||||||
| Other non-operating income (expense), net | (11.9) | (0.1) | 37.2 | (3.8) | |||||||||||||||||||
| Total non-operating income (expense), net | (64.4) | (119.8) | (123.1) | (208.4) | |||||||||||||||||||
| Income (loss) before income taxes | (3,495.5) | 331.4 | (2,784.3) | 1,156.7 | |||||||||||||||||||
| Income tax benefit (expense) | 558.6 | (102.6) | 394.8 | (292.7) | |||||||||||||||||||
| Net income (loss) | (2,936.9) | 228.8 | (2,389.5) | 864.0 | |||||||||||||||||||
| Net (income) loss attributable to noncontrolling interests | 9.3 | (29.0) | 11.6 | (29.4) | |||||||||||||||||||
| Net income (loss) attributable to Molson Coors Beverage Company | $ | (2,927.6) | $ | 199.8 | $ | (2,377.9) | $ | 834.6 | |||||||||||||||
| Net income (loss) attributable to Molson Coors Beverage Company per share | |||||||||||||||||||||||
| Basic | $ | (14.79) | $ | 0.96 | $ | (11.87) | $ | 3.98 | |||||||||||||||
| Diluted | $ | (14.79) | $ | 0.96 | $ | (11.87) | $ | 3.96 | |||||||||||||||
| Weighted-average shares outstanding | |||||||||||||||||||||||
| Basic | 197.9 | 207.2 | 200.4 | 209.9 | |||||||||||||||||||
| Dilutive effect of share-based awards | — | 0.8 | — | 1.1 | |||||||||||||||||||
| Diluted | 197.9 | 208.0 | 200.4 | 211.0 |
See notes to unaudited condensed consolidated financial statements.
MOLSON COORS BEVERAGE COMPANY AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS)
(IN MILLIONS)
(UNAUDITED)
| Three Months Ended | Nine Months Ended | ||||||||||||||||||||||
| September 30, 2025 | September 30, 2024 | September 30, 2025 | September 30, 2024 | ||||||||||||||||||||
| Net income (loss) including noncontrolling interests | $ | (2,936.9) | $ | 228.8 | $ | (2,389.5) | $ | 864.0 | |||||||||||||||
| Other comprehensive income (loss), net of tax | |||||||||||||||||||||||
| Foreign currency translation adjustments | (78.1) | 104.8 | 246.1 | (23.0) | |||||||||||||||||||
| Unrealized gain (loss) recognized on derivative instruments | 1.1 | (28.6) | (23.2) | 1.3 | |||||||||||||||||||
| Derivative instrument activity reclassified from other comprehensive income (loss) | — | — | (0.4) | — | |||||||||||||||||||
| Net change in pension and other postretirement benefit assets and liabilities recognized in other comprehensive income (loss) | — | 14.4 | — | 14.4 | |||||||||||||||||||
| Pension and other postretirement activity reclassified from other comprehensive income (loss) | (1.3) | 23.3 | (4.4) | 19.7 | |||||||||||||||||||
| Ownership share of unconsolidated subsidiaries' other comprehensive income (loss) | 0.1 | 0.1 | 0.2 | 0.3 | |||||||||||||||||||
| Total other comprehensive income (loss), net of tax | (78.2) | 114.0 | 218.3 | 12.7 | |||||||||||||||||||
| Comprehensive income (loss) | (3,015.1) | 342.8 | (2,171.2) | 876.7 | |||||||||||||||||||
| Comprehensive (income) loss attributable to noncontrolling interests | 9.3 | (29.3) | 10.6 | (29.4) | |||||||||||||||||||
| Comprehensive income (loss) attributable to Molson Coors Beverage Company | $ | (3,005.8) | $ | 313.5 | $ | (2,160.6) | $ | 847.3 |
See notes to unaudited condensed consolidated financial statements.
MOLSON COORS BEVERAGE COMPANY AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS
(IN MILLIONS, EXCEPT PAR VALUE)
(UNAUDITED)
| As of | |||||||||||
| September 30, 2025 | December 31, 2024 | ||||||||||
| Assets | |||||||||||
| Current assets | |||||||||||
| Cash and cash equivalents | $ | 950.2 | $ | 969.3 | |||||||
| Trade receivables, net | 842.5 | 693.1 | |||||||||
| Other receivables, net | 151.3 | 149.8 | |||||||||
| Inventories, net | 820.6 | 727.8 | |||||||||
| Other current assets, net | 465.8 | 308.4 | |||||||||
| Total current assets | 3,230.4 | 2,848.4 | |||||||||
| Property, plant and equipment, net | 4,626.7 | 4,460.4 | |||||||||
| Goodwill | 1,943.5 | 5,582.3 | |||||||||
| Other intangibles, net | 12,015.0 | 12,195.2 | |||||||||
| Other assets | 1,057.8 | 978.0 | |||||||||
| Total assets | $ | 22,873.4 | $ | 26,064.3 | |||||||
| Liabilities and equity | |||||||||||
| Current liabilities | |||||||||||
| Accounts payable and other current liabilities | $ | 2,937.6 | $ | 3,013.0 | |||||||
| Current portion of long-term debt and short-term borrowings | 2,407.2 | 32.2 | |||||||||
| Total current liabilities | 5,344.8 | 3,045.2 | |||||||||
| Long-term debt | 3,884.8 | 6,113.9 | |||||||||
| Pension and postretirement benefits | 409.5 | 416.7 | |||||||||
| Deferred tax liabilities | 2,242.9 | 2,733.4 | |||||||||
| Other liabilities | 322.6 | 302.4 | |||||||||
| Total liabilities | 12,204.6 | 12,611.6 | |||||||||
| Commitments and contingencies (Note 10) | |||||||||||
| Redeemable noncontrolling interests | 145.5 | 168.5 | |||||||||
| 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: 216.1 shares and 215.5 shares, respectively) | 2.2 | 2.1 | |||||||||
| Class A exchangeable shares, no par value (issued and outstanding: 2.7 shares and 2.7 shares, respectively) | 100.8 | 100.8 | |||||||||
| Class B exchangeable shares, no par value (issued and outstanding: 7.1 shares and 7.2 shares, respectively) | 266.9 | 271.1 | |||||||||
| Paid-in capital | 7,239.5 | 7,223.6 | |||||||||
| Retained earnings | 5,576.5 | 8,238.0 | |||||||||
| Accumulated other comprehensive income (loss) | (1,145.1) | (1,362.4) | |||||||||
| Class B common stock held in treasury at cost (30.8 shares and 24.8 shares, respectively) | (1,715.7) | (1,380.8) | |||||||||
| Total Molson Coors Beverage Company stockholders' equity | 10,325.1 | 13,092.4 | |||||||||
| Noncontrolling interests | 198.2 | 191.8 | |||||||||
| Total equity | 10,523.3 | 13,284.2 | |||||||||
| Total liabilities and equity | $ | 22,873.4 | $ | 26,064.3 |
See notes to unaudited condensed consolidated financial statements.
MOLSON COORS BEVERAGE COMPANY AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(IN MILLIONS)
(UNAUDITED)
| Nine Months Ended | |||||||||||
| September 30, 2025 | September 30, 2024 | ||||||||||
| Cash flows from operating activities | |||||||||||
| Net income (loss) including noncontrolling interests | $ | (2,389.5) | $ | 864.0 | |||||||
| Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities | |||||||||||
| Depreciation and amortization | 530.2 | 512.1 | |||||||||
| Amortization of cloud computing arrangements | 10.6 | 8.2 | |||||||||
| Amortization of debt issuance costs and discounts | 3.8 | 4.1 | |||||||||
| Interest expense related to mandatorily redeemable noncontrolling interest | — | 45.8 | |||||||||
| Share-based compensation | 27.2 | 34.6 | |||||||||
| Goodwill impairment | 3,645.7 | — | |||||||||
| (Gain) loss on sale or impairment of property, plant, equipment and other assets, net | 267.4 | 37.3 | |||||||||
| Unrealized (gain) loss on foreign currency fluctuations, fair value investments and derivative instruments, net | (76.9) | (25.1) | |||||||||
| Equity (income) loss | (11.5) | 3.6 | |||||||||
| Income tax (benefit) expense | (394.8) | 292.7 | |||||||||
| Income tax (paid) received | (99.6) | (116.7) | |||||||||
| Interest expense, excluding amortization of debt issuance costs and discounts | 181.8 | 169.7 | |||||||||
| Interest paid | (211.9) | (186.9) | |||||||||
| Other non-cash items, net | (1.3) | — | |||||||||
| Change in current assets and liabilities (net of impact of business combinations) and other | (237.5) | (227.6) | |||||||||
| Net cash provided by (used in) operating activities | 1,243.7 | 1,415.8 | |||||||||
| Cash flows from investing activities | |||||||||||
| Additions to property, plant and equipment | (533.7) | (563.0) | |||||||||
| Proceeds from sales of property, plant, equipment and other assets | 6.1 | 14.9 | |||||||||
| Acquisition of business, net of cash acquired | (22.3) | — | |||||||||
| Other | (85.2) | 17.8 | |||||||||
| Net cash provided by (used in) investing activities | (635.1) | (530.3) | |||||||||
| Cash flows from financing activities | |||||||||||
| Dividends paid | (285.7) | (279.4) | |||||||||
| Payments for purchases of treasury stock | (332.8) | (437.4) | |||||||||
| Payments on debt and borrowings | (9.6) | (879.0) | |||||||||
| Proceeds on debt and borrowings | — | 863.7 | |||||||||
| Other | (18.5) | (12.7) | |||||||||
| Net cash provided by (used in) financing activities | (646.6) | (744.8) | |||||||||
| Effect of foreign exchange rate changes on cash and cash equivalents | 18.9 | 12.1 | |||||||||
| Net increase (decrease) in cash and cash equivalents | (19.1) | 152.8 | |||||||||
| Balance at beginning of year | 969.3 | 868.9 | |||||||||
| Balance at end of period | $ | 950.2 | $ | 1,021.7 |
See notes to unaudited condensed consolidated financial statements.
MOLSON COORS BEVERAGE COMPANY AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY
AND NONCONTROLLING INTERESTS
(IN MILLIONS)
(UNAUDITED)
| Molson Coors Beverage Company Stockholders' Equity | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Accumulated | Common stock | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Common stock | Exchangeable | other | held in | Non | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
| issued | shares issued | Paid-in- | Retained | comprehensive | treasury | controlling | |||||||||||||||||||||||||||||||||||||||||||||||||||||
| Total | Class A | Class B | Class A | Class B | capital | earnings | income (loss) | Class B | interests**(1)** | ||||||||||||||||||||||||||||||||||||||||||||||||||
| As of June 30, 2024 | $ | 13,389.0 | $ | — | $ | 2.1 | $ | 100.8 | $ | 352.3 | $ | 7,119.4 | $ | 7,932.4 | $ | (1,217.3) | $ | (1,110.1) | $ | 209.4 | |||||||||||||||||||||||||||||||||||||||
| Exchange of shares | — | — | — | — | (81.2) | 81.2 | — | — | — | — | |||||||||||||||||||||||||||||||||||||||||||||||||
| Shares issued under equity compensation plan | (0.1) | — | — | — | — | (0.1) | — | — | — | — | |||||||||||||||||||||||||||||||||||||||||||||||||
| Amortization of share-based compensation | 10.4 | — | — | — | — | 10.4 | — | — | — | — | |||||||||||||||||||||||||||||||||||||||||||||||||
| Purchase of noncontrolling interest | — | — | — | — | — | 0.1 | — | — | — | (0.1) | |||||||||||||||||||||||||||||||||||||||||||||||||
| Net income (loss) including noncontrolling interests | 229.5 | — | — | — | — | — | 199.8 | — | — | 29.7 | |||||||||||||||||||||||||||||||||||||||||||||||||
| Other comprehensive income (loss), net of tax | 114.0 | — | — | — | — | — | — | 113.7 | — | 0.3 | |||||||||||||||||||||||||||||||||||||||||||||||||
| Share repurchase program | (62.7) | — | — | — | — | — | — | — | (62.7) | — | |||||||||||||||||||||||||||||||||||||||||||||||||
| Contributions from noncontrolling interests | 2.7 | — | — | — | — | — | — | — | — | 2.7 | |||||||||||||||||||||||||||||||||||||||||||||||||
| Reclassification of mandatorily redeemable noncontrolling interest to accounts payable and other current liabilities | (49.2) | — | — | — | — | — | — | (3.5) | — | (45.7) | |||||||||||||||||||||||||||||||||||||||||||||||||
| Reclassification of noncontrolling interests to redeemable noncontrolling interests | (16.1) | — | — | — | — | — | — | — | — | (16.1) | |||||||||||||||||||||||||||||||||||||||||||||||||
| Dividends declared | (92.0) | — | — | — | — | — | (92.0) | — | — | — | |||||||||||||||||||||||||||||||||||||||||||||||||
| As of September 30, 2024 | $ | 13,525.5 | $ | — | $ | 2.1 | $ | 100.8 | $ | 271.1 | $ | 7,211.0 | $ | 8,040.2 | $ | (1,107.1) | $ | (1,172.8) | $ | 180.2 |
| Molson Coors Beverage Company Stockholders' Equity | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Accumulated | Common stock | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Common stock | Exchangeable | other | held in | Non | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
| issued | shares issued | Paid-in- | Retained | comprehensive | treasury | controlling | |||||||||||||||||||||||||||||||||||||||||||||||||||||
| Total | Class A | Class B | Class A | Class B | capital | earnings | income (loss) | Class B | interests**(1)** | ||||||||||||||||||||||||||||||||||||||||||||||||||
| As of June 30, 2025 | $ | 13,636.3 | $ | — | $ | 2.2 | $ | 100.8 | $ | 266.9 | $ | 7,230.6 | $ | 8,597.5 | $ | (1,066.9) | $ | (1,690.4) | $ | 195.6 | |||||||||||||||||||||||||||||||||||||||
| Shares issued under equity compensation plan | 0.6 | — | — | — | — | 0.6 | — | — | — | — | |||||||||||||||||||||||||||||||||||||||||||||||||
| Amortization of share-based compensation | 8.3 | — | — | — | — | 8.3 | — | — | — | — | |||||||||||||||||||||||||||||||||||||||||||||||||
| Net income (loss) including noncontrolling interests | (2,922.0) | — | — | — | — | — | (2,927.6) | — | — | 5.6 | |||||||||||||||||||||||||||||||||||||||||||||||||
| Other comprehensive income (loss), net of tax | (78.2) | — | — | — | — | — | — | (78.2) | — | — | |||||||||||||||||||||||||||||||||||||||||||||||||
| Share repurchase program | (25.3) | — | — | — | — | — | — | — | (25.3) | — | |||||||||||||||||||||||||||||||||||||||||||||||||
| Distributions and dividends to noncontrolling interests | (3.0) | — | — | — | — | — | — | — | — | (3.0) | |||||||||||||||||||||||||||||||||||||||||||||||||
| Dividends declared | (93.4) | — | — | — | — | — | (93.4) | — | — | — | |||||||||||||||||||||||||||||||||||||||||||||||||
| As of September 30, 2025 | $ | 10,523.3 | $ | — | $ | 2.2 | $ | 100.8 | $ | 266.9 | $ | 7,239.5 | $ | 5,576.5 | $ | (1,145.1) | $ | (1,715.7) | $ | 198.2 |
| Molson Coors Beverage Company Stockholders' Equity | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Accumulated | Common stock | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Common stock | Exchangeable | other | held in | Non | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
| issued | shares issued | Paid-in- | Retained | comprehensive | treasury | controlling | |||||||||||||||||||||||||||||||||||||||||||||||||||||
| Total | Class A | Class B | Class A | Class B | capital | earnings | income (loss) | Class B | interests**(1)** | ||||||||||||||||||||||||||||||||||||||||||||||||||
| As of December 31, 2023 | $ | 13,407.2 | $ | — | $ | 2.1 | $ | 100.8 | $ | 352.3 | $ | 7,108.4 | $ | 7,484.3 | $ | (1,116.3) | $ | (735.6) | $ | 211.2 | |||||||||||||||||||||||||||||||||||||||
| Exchange of shares | — | — | — | — | (81.2) | 81.2 | — | — | — | — | |||||||||||||||||||||||||||||||||||||||||||||||||
| Shares issued under equity compensation plan | (13.3) | — | — | — | — | (13.3) | — | — | — | — | |||||||||||||||||||||||||||||||||||||||||||||||||
| Amortization of share-based compensation | 34.6 | — | — | — | — | 34.6 | — | — | — | — | |||||||||||||||||||||||||||||||||||||||||||||||||
| Purchase of noncontrolling interest | (0.1) | — | — | — | — | 0.1 | — | — | — | (0.2) | |||||||||||||||||||||||||||||||||||||||||||||||||
| Net income (loss) including noncontrolling interests | 865.7 | — | — | — | — | — | 834.6 | — | — | 31.1 | |||||||||||||||||||||||||||||||||||||||||||||||||
| Other comprehensive income (loss), net of tax | 12.7 | — | — | — | — | — | — | 12.7 | — | — | |||||||||||||||||||||||||||||||||||||||||||||||||
| Share repurchase program | (437.2) | — | — | — | — | — | — | — | (437.2) | — | |||||||||||||||||||||||||||||||||||||||||||||||||
| Contributions from noncontrolling interests | 2.7 | — | — | — | — | — | — | — | — | 2.7 | |||||||||||||||||||||||||||||||||||||||||||||||||
| Distributions and dividends to noncontrolling interests | (2.8) | — | — | — | — | — | — | — | — | (2.8) | |||||||||||||||||||||||||||||||||||||||||||||||||
| Reclassification of mandatorily redeemable noncontrolling interest to accounts payable and other current liabilities | (49.2) | — | — | — | — | — | — | (3.5) | — | (45.7) | |||||||||||||||||||||||||||||||||||||||||||||||||
| Reclassification of noncontrolling interests to redeemable noncontrolling interests | (16.1) | — | — | — | — | — | — | — | — | (16.1) | |||||||||||||||||||||||||||||||||||||||||||||||||
| Dividends declared | (278.7) | — | — | — | — | — | (278.7) | — | — | — | |||||||||||||||||||||||||||||||||||||||||||||||||
| As of September 30, 2024 | $ | 13,525.5 | $ | — | $ | 2.1 | $ | 100.8 | $ | 271.1 | $ | 7,211.0 | $ | 8,040.2 | $ | (1,107.1) | $ | (1,172.8) | $ | 180.2 |
| Molson Coors Beverage Company Stockholders' Equity | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Accumulated | Common stock | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Common stock | Exchangeable | other | held in | Non | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
| issued | shares issued | Paid-in- | Retained | comprehensive | treasury | controlling | |||||||||||||||||||||||||||||||||||||||||||||||||||||
| Total | Class A | Class B | Class A | Class B | capital | earnings | income (loss) | Class B | interests**(1)** | ||||||||||||||||||||||||||||||||||||||||||||||||||
| As of December 31, 2024 | $ | 13,284.2 | $ | — | $ | 2.1 | $ | 100.8 | $ | 271.1 | $ | 7,223.6 | $ | 8,238.0 | $ | (1,362.4) | $ | (1,380.8) | $ | 191.8 | |||||||||||||||||||||||||||||||||||||||
| Exchange of shares | — | — | — | — | (4.2) | 4.2 | — | — | — | — | |||||||||||||||||||||||||||||||||||||||||||||||||
| Shares issued under equity compensation plan | (15.3) | — | 0.1 | — | — | (15.4) | — | — | — | — | |||||||||||||||||||||||||||||||||||||||||||||||||
| Amortization of share-based compensation | 27.2 | — | — | — | — | 27.2 | — | — | — | — | |||||||||||||||||||||||||||||||||||||||||||||||||
| Purchase of noncontrolling interest | (0.2) | — | — | — | — | (0.1) | — | — | — | (0.1) | |||||||||||||||||||||||||||||||||||||||||||||||||
| Net income (loss) including noncontrolling interests | (2,364.9) | — | — | — | — | — | (2,377.9) | — | — | 13.0 | |||||||||||||||||||||||||||||||||||||||||||||||||
| Other comprehensive income (loss), net of tax | 217.8 | — | — | — | — | — | — | 217.3 | — | 0.5 | |||||||||||||||||||||||||||||||||||||||||||||||||
| Share repurchase program | (334.9) | — | — | — | — | — | — | — | (334.9) | — | |||||||||||||||||||||||||||||||||||||||||||||||||
| Distributions and dividends to noncontrolling interests | (7.0) | — | — | — | — | — | — | — | — | (7.0) | |||||||||||||||||||||||||||||||||||||||||||||||||
| Dividends declared | (283.6) | — | — | — | — | — | (283.6) | — | — | — | |||||||||||||||||||||||||||||||||||||||||||||||||
| As of September 30, 2025 | $ | 10,523.3 | $ | — | $ | 2.2 | $ | 100.8 | $ | 266.9 | $ | 7,239.5 | $ | 5,576.5 | $ | (1,145.1) | $ | (1,715.7) | $ | 198.2 |
(1)All activity included in the noncontrolling interests column of the unaudited condensed consolidated statements of stockholders' equity and noncontrolling interests excludes activity from our redeemable noncontrolling interests.
See notes to unaudited condensed consolidated financial statements.
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 its reporting segments. Our reporting segments include the Americas and EMEA&APAC. Our Americas segment operates in the U.S., Canada and various countries in Latin 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 year 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, RON 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 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.
The results of operations for the three and nine months ended September 30, 2025, are not necessarily indicative of the results that may be achieved for the full year or any other future period.
Anti-Dilutive Securities
Anti-dilutive securities from share-based awards excluded from the computation of diluted EPS were 4.1 million and 1.5 million for the three months ended September 30, 2025 and September 30, 2024, respectively, and 4.1 million and 1.3 million for the nine months ended September 30, 2025 and September 30, 2024, respectively.
Dividends
On July 16, 2025, our Company's Board of Directors ("Board") declared a dividend of $0.47 per share, paid on September 19, 2025, to shareholders of Class A and Class B common stock of record on September 5, 2025. Shareholders of exchangeable shares received the CAD equivalent of dividends declared on Class A and Class B common stock, equal to CAD 0.64 per share. During the nine months ended September 30, 2025, dividends declared to eligible shareholders were $1.41 per share, with the CAD equivalent equal to CAD 1.96 per share.
During the three months ended September 30, 2024, dividends declared to eligible shareholders were $0.44 per share, with the CAD equivalent equal to CAD 0.60 per share. During the nine months ended September 30, 2024, dividends declared to eligible shareholders were $1.32 per share, with the CAD equivalent equal to CAD 1.78 per share.
Share Repurchase Program
The following table presents the shares repurchased and aggregate cost, including brokerage commissions and excise taxes incurred, under our current share repurchase program for the three and nine months ended September 30, 2025 and September 30, 2024.
| Three Months Ended | Nine Months Ended | ||||||||||||||||||||||
| September 30, 2025 | September 30, 2024 | September 30, 2025 | September 30, 2024 | ||||||||||||||||||||
| Shares repurchased | 502,212 | 1,160,707 | 6,011,221 | 7,500,489 | |||||||||||||||||||
| Aggregate cost (in millions) | $ | 25.3 | $ | 62.7 | $ | 334.9 | $ | 437.2 |
Non-Cash Activity
Our non-cash investing activities include movements in our guarantee of indebtedness of certain equity method investments. See Note 3, "Investments" for further discussion. We also had non-cash investing activities related to capital expenditures incurred but not yet paid of $165.5 million and $119.7 million for the nine months ended September 30, 2025 and September 30, 2024, respectively.
Our non-cash financing activities include certain issuances of share-based awards.
Other than the activity mentioned above and the supplemental non-cash activity related to the recognition of leases discussed in Note 6, "Leases", there was no other significant non-cash investing or financing activities for the nine months ended September 30, 2025 and September 30, 2024, respectively.
Allowance for Doubtful Accounts
The allowance for doubtful accounts for trade receivables was $10.2 million and $8.9 million as of September 30, 2025 and December 31, 2024, respectively.
Supplier Financing
We are the buyer under a supplier finance program with Citibank N.A. with $172.7 million and $145.1 million confirmed as valid and outstanding as of September 30, 2025 and December 31, 2024, respectively. We recognize these unpaid balances in accounts payable and other current liabilities on our unaudited condensed consolidated balance sheets.
Redeemable Noncontrolling Interest
Certain of our noncontrolling interests have redemption features that are outside of our control, such as those subject to put options exercisable at a future date. We account for these as redeemable noncontrolling interests and present the balances separately from stockholders' equity on our unaudited condensed consolidated balance sheets. During the three months ended September 30, 2025, we recorded attributable net losses of $97.5 million and adjustments to redemption value of $82.6 million. During the nine months ended September 30, 2025, we recorded attributable net losses of $108.1 million and adjustments to redemption value of $83.5 million. The adjustments to redemption value were recorded as increases to redeemable noncontrolling interests on the unaudited condensed consolidated balance sheets and net (income) loss attributable to noncontrolling interests on the unaudited condensed consolidated statements of operations. There was no material activity related to redeemable noncontrolling interests for the three and nine months ended September 30, 2024.
Fevertree Transactions
During the first quarter of 2025, we obtained exclusive rights via a license agreement to produce, market and sell Fever-Tree products in the U.S. In connection with this agreement, we acquired the shares of the Fevertree USA, Inc. entity, with the immaterial acquisition accounted for as a business combination and consideration allocated primarily to working capital balances. The acquisition is aligned with our strategy to expand beyond the beer aisle.
Further, during the first quarter of 2025, we made a minority investment of $88.1 million in Fevertree Drinks plc, a listed entity on the London Stock Exchange (LSE:FEVR). As of September 30, 2025, we continue to hold a minority interest in the entity. See Note 3, "Investments" for further discussion.
Purchases of Annuity Contracts
On September 26, 2024, we purchased annuity contracts for two of our Canadian pension plans which transferred approximately $344 million of pension plan liabilities, along with the associated administration of benefits, to an insurance company using the plan's respective pension plan assets. As a result, a settlement loss of $34.0 million was recorded to other pension and postretirement benefit (costs), net in the unaudited condensed consolidated statements of operations during the third quarter of 2024.
Cobra Beer Partnership, Ltd. Buyout
In March 2024, our partner of Cobra Beer Partnership, Ltd. ("Cobra U.K." or "CBPL") exercised a put option under our partnership agreement which required us to acquire the remaining 49.9% ownership interest. During the third quarter of 2024, we adjusted our NCI by $34.5 million to our best estimate of the redemption value that existed at the time of the put option exercise by increasing our net income attributable to noncontrolling interests and decreasing our net income attributable to MCBC. In addition, we received the final determination of the redemption value in October 2024 and as the transaction was considered mandatorily redeemable, we recorded an adjustment of $45.8 million to interest expense in the EMEA&APAC segment during the three months ended September 30, 2024.
Chief Executive Officer Succession
On April 12, 2025, Gavin D.K. Hattersley, President and Chief Executive Officer ("CEO") of the Company and a member of the Board informed the Company and the Board that he intends to retire from the Company and as a member of the Board, in each case, by December 31, 2025.
On September 19, 2025, the Board appointed Rahul Goyal as the Company’s President and CEO and member of the Board effective, in each case, as of October 1, 2025, following the retirement of Gavin D.K. Hattersley from those same positions immediately prior to such appointments. Gavin D.K. Hattersley will remain employed by the Company in an advisory role to assist in the transition until December 31, 2025, or an earlier date as determined by Gavin D.K. Hattersley or the Company.
Americas Restructuring Plan
On October 20, 2025, the Company announced an Americas restructuring plan designed to create a leaner, more agile Americas segment while advancing its ability to reinvest in the business and position the Company for future growth. The restructuring plan involves the planned elimination of approximately 400 salaried positions across the Americas segment by the end of December 2025. In connection with the restructuring, the Company currently expects to incur certain restructuring charges, in the range of $35 million to $50 million, which are expected to be future cash expenditures to be made over the next 12 months. Substantially all of the charges are expected to be related to severance payments and post-employment benefits to be incurred in the fourth quarter of 2025.
2. New Accounting Pronouncements
New Accounting Pronouncements Not Yet Adopted
In September 2025, the FASB issued ASU 2025-06, Intangibles—Goodwill and Other—Internal-Use Software (Subtopic 350-40): Targeted Improvements to the Accounting for Internal-Use Software, aimed at modernizing the guidance for internal-use software to reflect the different methods of software development. This guidance removes reference to “development stages” and introduces a “probable-to-complete” recognition threshold to determine when to begin capitalizing software costs. This guidance will be effective for us starting with our quarterly report ending March 31, 2028, with prospective, retrospective, or modified transition methods allowed and early adoption permitted. We are currently evaluating the impact of this ASU, including our timing and method of adoption. We expect the guidance to potentially impact the timing of when we begin to capitalize software costs.
In November 2024, the FASB issued ASU 2024-03, Income Statement—Reporting Comprehensive Income—Expense Disaggregation Disclosures (Subtopic 220-40): Disaggregation of Income Statement Expenses, aimed at enhancing transparency in income statement disclosures by requiring entities to disclose additional disaggregated information about significant expenses included in our results of operations. This guidance will be effective for us starting with our annual report for the year ending December 31, 2027 and the subsequent interim periods, with prospective or retrospective application allowed and early adoption permitted. We are assessing the impact of this ASU, including the timing and method of adoption, however, we expect the guidance to impact disclosures only and not have a material effect on our financial position or results of operations.
In December 2023, the FASB issued ASU 2023-09, Income Taxes (Topic 740): Improvements to Income Tax Disclosures intended to enhance transparency and decision usefulness of income tax disclosures. This guidance is effective for us starting with our annual report for the year ending December 31, 2025. We have the option to apply the guidance prospectively or retrospectively and we are continuing to assess which method to apply. When adopted, we expect the guidance to impact disclosures only and not have a material effect on our financial position or results of operations.
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 material effect on our unaudited condensed consolidated financial statements.
3. Investments
Consolidated VIE Investments
Our consolidated VIEs as of September 30, 2025, were Rocky Mountain Metal Container ("RMMC") and Rocky Mountain Bottle Company ("RMBC"). The following summarizes the assets and liabilities of our consolidated VIEs (including noncontrolling interests and excluding goodwill):
| As of | |||||||||||||||||||||||
| September 30, 2025 | December 31, 2024 | ||||||||||||||||||||||
| Total Assets | Total Liabilities | Total Assets | Total Liabilities | ||||||||||||||||||||
| (In millions) | |||||||||||||||||||||||
| RMMC/RMBC | $ | 230.3 | $ | 17.7 | $ | 230.3 | $ | 29.8 | |||||||||||||||
As of September 30, 2025, for RMMC/RMBC, $67.9 million and $107.1 million were recorded in inventories, net and property, plant and equipment, net, respectively, on the unaudited condensed consolidated balance sheets. As of December 31, 2024, for RMMC/RMBC, $64.0 million and $113.6 million were recorded in inventories, net and property, plant and equipment, net, respectively, on the consolidated balance sheets.
We have not provided any financial support to any of our VIEs during the nine months ended September 30, 2025, that we were not previously contractually obligated to provide.
Equity Method Investments
Our equity method investments include our ownership interests in Brewers Retail Inc. ("BRI"), Brewers Distributor Ltd. ("BDL") and The Yuengling Company LLC, as well as other immaterial investments. The total balance of our equity method investments was $112.3 million and $108.9 million as of September 30, 2025 and December 31, 2024, respectively. Our equity method investments are all within the Americas segment and are presented within other assets on the unaudited condensed consolidated balance sheets. Amounts due to and due from our equity method investments are recorded as affiliate accounts payable and affiliate accounts receivable which are presented within accounts payable and other current liabilities and trade receivables, net, respectively, on the unaudited condensed consolidated balance sheets.
Our BRI and BDL third party debt instruments are guaranteed by the respective shareholders. As a result, we had a guarantee liability of $11.1 million and $30.1 million recorded as of September 30, 2025 and December 31, 2024, 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 offset to the guarantee liability is our respective equity method investment on 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.
ASC 321 Investment
During the first quarter of 2025, Molson Coors Beverage Company made an investment of $88.1 million in Fevertree Drinks plc, a listed entity on the London Stock Exchange (LSE:FEVR). We hold a minority interest in the entity and account for the investment under ASC 321 which requires investments to be measured at fair value with subsequent changes in fair value recognized in net income. As of September 30, 2025, the investment was recorded at a fair value of $127.4 million calculated based on a quoted market price on the London Stock Exchange (Level 1 inputs) in other assets on our unaudited condensed consolidated balance sheets. Changes in fair value are recorded within other non-operating income (expense), net in our unaudited condensed consolidated statements of operations, and as a result, we recorded an unrealized loss of $11.9 million and an unrealized gain of $39.3 million during the three and nine months ended September 30, 2025, respectively.
4. Inventories
| As of | |||||||||||
| September 30, 2025 | December 31, 2024 | ||||||||||
| (In millions) | |||||||||||
| Finished goods | $ | 304.9 | $ | 245.8 | |||||||
| Work in process | 90.6 | 83.8 | |||||||||
| Raw materials | 269.1 | 261.2 | |||||||||
| Packaging materials | 156.0 | 137.0 | |||||||||
| Inventories, net | $ | 820.6 | $ | 727.8 |
5. Goodwill and Intangible Assets
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, 2024 | $ | 5,582.3 | $ | — | $ | 5,582.3 | |||||||||||
| Impairment | (3,645.7) | — | (3,645.7) | ||||||||||||||
| Foreign currency translation, net | 6.9 | — | 6.9 | ||||||||||||||
| Balance as of September 30, 2025 | $ | 1,943.5 | $ | — | $ | 1,943.5 |
(1)The accumulated impairment loss for the Americas segment was $5,159.0 million and $1,513.3 million as of September 30, 2025 and December 31, 2024, respectively. 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.
During the third quarter of 2025, as we began updating our long-range planning based on current year results to date and industry conditions, we identified a triggering event that indicated it was more likely than not that the carrying value of the Americas reporting unit exceeded its fair value. The triggering event was due to lower current year and future forecasted results which were driven by declines in the beer industry, market share losses and higher than expected costs in the U.S. combined with a higher discount rate and lower market multiples. An impairment test was completed as of August 31, 2025, using a combination of a discounted cash flow analysis and market multiples approach and it was concluded that the carrying value of the Americas reporting unit was in excess of its fair value such that a partial goodwill impairment loss of $3,645.7 million was recorded in the unaudited condensed consolidated statements of operations.
We utilized independent valuation specialists and industry accepted valuation models in calculating the fair value of the Americas reporting unit. The key assumptions used to derive the estimated fair value of the Americas reporting unit, which include the internal cash flow projections based on our updated long-range plans and the discount rate, represent Level 3 measurements. Our discounted cash flow projections include assumptions for growth rates for sales, costs and profits, which are based on various long-range financial and operational plans. Additionally, the discount rate used in our analysis is based on the weighted-average cost of capital, driven by the prevailing interest rates and financing abilities as well as the identified risks and opportunities of the reporting unit. The increase in the discount rate compared to the prior year annual test was partially due to the additional risk premium assessed on the reporting unit based on the current industry environment.
Due to the partial impairment charge, the Americas reporting unit is still considered to be at a heightened risk of future impairment. We are focused on building a portfolio of strong and scalable brands in both beer and beyond beer, which entails prioritizing our investments to strengthen our core and economy beer portfolios and to transform our above premium beer and beyond beer portfolios. While progress has been made, continued focus is required to deliver on our objectives. Therefore, 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, market multiples and discount rates that could negatively impact future analyses, including the impacts of cost inflation and tariffs, increases to interest rates and other external industry factors impacting our business.
Intangible Assets, Other than Goodwill
The following table presents details of our intangible assets, other than goodwill, as of September 30, 2025:
| Useful life | Gross | Accumulated amortization | Net | ||||||||||||||||||||
| (Years) | (In millions) | ||||||||||||||||||||||
| Intangible assets subject to amortization | |||||||||||||||||||||||
| Brands | 10 - 50 | $ | 5,161.2 | $ | (1,900.5) | $ | 3,260.7 | ||||||||||||||||
| License agreements and distribution rights | 10 - 20 | 204.0 | (128.7) | 75.3 | |||||||||||||||||||
| Other | 5 - 40 | 85.1 | (29.9) | 55.2 | |||||||||||||||||||
| Intangible assets not subject to amortization | |||||||||||||||||||||||
| Brands | Indefinite | 7,589.5 | — | 7,589.5 | |||||||||||||||||||
| Distribution networks | Indefinite | 726.7 | — | 726.7 | |||||||||||||||||||
| Other | Indefinite | 307.6 | — | 307.6 | |||||||||||||||||||
| Total | $ | 14,074.1 | $ | (2,059.1) | $ | 12,015.0 |
The following table presents details of our intangible assets, other than goodwill, as of December 31, 2024:
| Useful life | Gross | Accumulated amortization | Net | ||||||||||||||||||||
| (Years) | (In millions) | ||||||||||||||||||||||
| Intangible assets subject to amortization | |||||||||||||||||||||||
| Brands | 10 - 50 | $ | 4,797.3 | $ | (1,713.5) | $ | 3,083.8 | ||||||||||||||||
| License agreements and distribution rights | 10 - 20 | 200.2 | (120.2) | 80.0 | |||||||||||||||||||
| Other | 5 - 40 | 84.5 | (27.8) | 56.7 | |||||||||||||||||||
| Intangible assets not subject to amortization | |||||||||||||||||||||||
| Brands | Indefinite | 7,963.8 | — | 7,963.8 | |||||||||||||||||||
| Distribution networks | Indefinite | 703.3 | — | 703.3 | |||||||||||||||||||
| Other | Indefinite | 307.6 | — | 307.6 | |||||||||||||||||||
| Total | $ | 14,056.7 | $ | (1,861.5) | $ | 12,195.2 |
The increase in the gross carrying amount of intangible assets from December 31, 2024 to September 30, 2025, was primarily driven by favorable foreign currency impacts, as a significant amount of intangible assets, other than goodwill, are denominated in foreign currencies, partially offset by impairment charges of $273.9 million recorded during the three months ended September 30, 2025.
Based on foreign exchange rates as of September 30, 2025, the estimated future amortization expense of intangible assets was as follows:
| Fiscal year | Amount | |||||||
| (In millions) | ||||||||
| 2025 - remaining | $ | 51.9 | ||||||
| 2026 | 190.9 | |||||||
| 2027 | 131.8 | |||||||
| 2028 | 130.4 | |||||||
| 2029 | 130.3 |
Amortization expense of intangible assets was $52.1 million and $50.7 million for the three months ended September 30, 2025 and September 30, 2024, respectively, and $155.0 million and $155.3 million for the nine months ended September 30, 2025 and September 30, 2024, respectively. This expense was presented within MG&A expenses in our unaudited condensed consolidated statements of operations.
During the third quarter of 2025, as we began updating our long-range planning based on current year results to date, we identified a triggering event for the Blue Run Spirits asset group in the Americas segment, due to softer current year and future forecasted results primarily driven by a challenging macroeconomic environment for full strength spirits, resulting in lower sales. The asset group did not pass the recoverability test and the carrying value was determined to exceed its fair value resulting in the full impairment of the definite-lived intangible brand of $75.3 million as of August 31, 2025, which was recorded within other operating income (expense), net in the unaudited condensed consolidated statements of operations. The asset group was measured at fair value primarily using a discounted cash flow approach.
Also during the third quarter of 2025, as we began updating our long-range planning based on current year results to date and the current challenging industry environment in the relevant markets, we identified a triggering event for the Staropramen family of brands in the EMEA&APAC segment. The triggering event was driven by softer than expected current year and future forecasted results in certain of the key markets where the Staropramen family of brands is sold. We completed an impairment test using a discounted cash flow approach as of August 31, 2025 and concluded that the carrying value of the Staropramen family of brands was in excess of its fair value such that a partial impairment loss of $198.6 million was recorded within other operating income (expense), net in the unaudited condensed consolidated statements of operations. After the impairment charge, the carrying value of the Staropramen family of brands was $257.1 million. The decline in the fair value of the Staropramen family of brands in the current year was impacted by reductions in management forecasts due to lower than expected brand results in 2025 driven by soft market demand and a heightened competitive landscape across key markets, resulting in a more modest growth trajectory than in previous assumptions.
In conjunction with the impairment review of the Staropramen family of brands, we also reassessed the brand's indefinite-life classification and determined that the impaired brand has characteristics that have evolved and which now indicate a definite-life is more appropriate, including prolonged weakness in consumer demand driven by increased economic and competitive pressures. These factors have resulted in continued declines in performance and these pressures are expected to continue into the future. Therefore, we reclassified the Staropramen family of brands to a definite-lived intangible asset with a useful life of 50 years effective August 31, 2025.
We utilized Level 3 fair value measurements in our impairment analysis of the Blue Run Spirits asset group and the Staropramen family of brands indefinite-lived intangible asset, with the excess earnings approach utilized for the Staropramen family of brands. We utilized independent valuation specialists in calculating the fair value of the Staropramen family of brands. The future cash flows used in the analyses were based on internal cash flow projections related to our long-range plans and included significant assumptions by management. The discount rate utilized for the Staropramen family of brands is a key assumption and is based on the weighted-average cost of capital, driven by the prevailing interest rates and financing abilities of the geographies in which the family of brands are sold as well as the identified risks and opportunities of the brands for each geography.
The fair value of the Coors brands in the Americas (inclusive of our Coors brand in the U.S. and Coors distribution agreement in Canada), the Miller brands in the U.S. and the Carling brand in EMEA&APAC all exceeded their respective carrying values by over 15% as of the October 1, 2024 annual testing date. No additional triggering events were identified during the nine months ended September 30, 2025 that would indicate the carrying values of any of our other 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 facts and circumstances impacting the underlying assumptions. The key underlying assumptions used to derive the estimated fair values of our reporting units and indefinite-lived intangible assets were consistent with those discussed in Part II.—Item 8. Financial Statements, Note 6, "Goodwill and Intangible Assets" in our Annual Report and represent Level 3 measurements.
6. Leases
Supplemental balance sheet information related to leases as of September 30, 2025 and December 31, 2024, was as follows:
| As of | ||||||||||||||
| September 30, 2025 | December 31, 2024 | |||||||||||||
| Balance Sheet Classification | (In millions) | |||||||||||||
| Operating Leases | ||||||||||||||
| Operating lease right-of-use assets | Other assets | $ | 196.9 | $ | 189.0 | |||||||||
| Current operating lease liabilities | Accounts payable and other current liabilities | $ | 54.5 | $ | 46.7 | |||||||||
| Non-current operating lease liabilities | Other liabilities | 163.3 | 161.5 | |||||||||||
| Total operating lease liabilities | $ | 217.8 | $ | 208.2 | ||||||||||
| Finance Leases | ||||||||||||||
| Finance lease right-of-use assets | Property, plant and equipment, net | $ | 63.6 | $ | 58.4 | |||||||||
| Current finance lease liabilities | Current portion of long-term debt and short-term borrowings | $ | 11.2 | $ | 9.9 | |||||||||
| Non-current finance lease liabilities | Long-term debt | 61.3 | 56.9 | |||||||||||
| Total finance lease liabilities | $ | 72.5 | $ | 66.8 |
Supplemental cash flow information related to leases for the nine months ended September 30, 2025 and September 30, 2024, was as follows:
| Nine Months Ended | |||||||||||
| September 30, 2025 | September 30, 2024 | ||||||||||
| (In millions) | |||||||||||
| Cash paid for amounts included in the measurements of lease liabilities | |||||||||||
| Operating cash flows from operating leases | $ | 47.8 | $ | 40.7 | |||||||
| Operating cash flows from finance leases | 2.8 | 2.8 | |||||||||
| Financing cash flows from finance leases | 7.6 | 4.5 | |||||||||
| Supplemental non-cash information on right-of-use assets obtained in exchange for new lease liabilities | |||||||||||
| Operating leases | 28.6 | 40.1 | |||||||||
| Finance leases | 10.6 | 17.9 |
7. Debt
Debt Obligations
| As of | |||||||||||
| September 30, 2025 | December 31, 2024 | ||||||||||
| (In millions) | |||||||||||
| Long-term debt | |||||||||||
| CAD 500 million 3.44% senior notes due July 2026 | $ | 359.2 | $ | 347.6 | |||||||
| $2.0 billion 3.0% senior notes due July 2026 | 2,000.0 | 2,000.0 | |||||||||
| EUR 800 million 3.8% senior notes due June 2032 | 938.7 | 828.3 | |||||||||
| $1.1 billion 5.0% senior notes due May 2042 | 1,100.0 | 1,100.0 | |||||||||
| $1.8 billion 4.2% senior notes due July 2046 | 1,800.0 | 1,800.0 | |||||||||
| Finance leases | 72.5 | 66.8 | |||||||||
| Other | 20.8 | 21.7 | |||||||||
| Less: unamortized debt discounts and debt issuance costs | (35.8) | (38.2) | |||||||||
| Total long-term debt (including current portion) | 6,255.4 | 6,126.2 | |||||||||
| Less: current portion of long-term debt | (2,370.6) | (12.3) | |||||||||
| Total long-term debt | $ | 3,884.8 | $ | 6,113.9 | |||||||
| Short-term borrowings(1) | $ | 36.6 | $ | 19.9 | |||||||
| Current portion of long-term debt | 2,370.6 | 12.3 | |||||||||
| Current portion of long-term debt and short-term borrowings | $ | 2,407.2 | $ | 32.2 |
(1)Our short-term borrowings include bank overdrafts, borrowings on our overdraft facilities and other items.
As of September 30, 2025, we had $29.5 million in bank overdrafts and $75.4 million in bank cash related to our cross-border, cross-currency cash pool for a net positive position of $45.9 million. As of December 31, 2024, we had $13.0 million in bank overdrafts and $59.0 million in bank cash related to our cross-border, cross-currency cash pool for a net positive position of $46.0 million.
In addition, we have CAD, GBP and USD overdraft facilities under which we had no outstanding borrowings as of September 30, 2025 and December 31, 2024. See further detail within Part II.—Item 8. Financial Statements, Note 13, "Commitments and Contingencies" in our Annual Report for further discussion related to letters of credit.
Debt Fair Value Measurements
We utilize market approaches to estimate the fair value of certain outstanding borrowings by discounting anticipated future cash flows derived from the contractual terms of the obligations using observable market interest and foreign exchange rates. As of September 30, 2025 and December 31, 2024, the fair value of our outstanding long-term debt (including the current portion of long-term debt) was approximately $5.9 billion and $5.7 billion, respectively. All senior notes are valued based on other significant observable inputs and classified as Level 2 in the fair value hierarchy. The carrying values of all other outstanding long-term borrowings and our short-term borrowings approximate their fair values and are also classified as Level 2 in the fair value hierarchy.
Revolving Credit Facility and Commercial Paper
On June 26, 2025, we amended our existing $2.0 billion multi-currency revolving credit facility to extend the maturity date from June 26, 2029 to June 26, 2030. The amendment did not change the borrowing capacity of the revolving credit facility, which allows us to issue a maximum aggregate amount of $2.0 billion in commercial paper or make other borrowings at any time at variable interest rates. We use this facility from time to time to fund the repayment of debt upon maturity and for working capital or general purposes.
We had no borrowings drawn on the amended and restated multi-currency revolving credit facility and no commercial paper borrowings as of September 30, 2025 and December 31, 2024.
Debt Covenants
Under the terms of each of our debt facilities, we must comply with certain restrictions. These include customary events of default and specified representations, warranties and covenants, as well as covenants that restrict our ability to incur certain additional priority indebtedness (certain thresholds of secured consolidated net tangible assets), certain leverage threshold percentages, create or permit liens on assets, and restrictions on mergers, acquisitions and certain types of sale lease-back transactions.
Under the amended and restated $2.0 billion multi-currency revolving credit facility, we are required to maintain a maximum leverage ratio, calculated as net debt to EBITDA (as defined in the amended and restated multi-currency revolving credit facility agreement) of 4.00x, measured as of the last day of each fiscal quarter through maturity of the credit facility. As of September 30, 2025, we were in compliance with all of these restrictions and covenants, have met such financial ratios and have met all debt payment obligations. All our outstanding senior notes as of September 30, 2025, rank pari-passu.
8. Derivative Instruments and Hedging Activities
Our risk management and derivative accounting policies are presented within Part II.—Item 8. Financial Statements, Note 1, "Basis of Presentation and Summary of Significant Accounting Policies" and Note 10, "Derivative Instruments and Hedging Activities" in our Annual Report and did not significantly change during the nine months ended September 30, 2025. As noted in Part II.—Item 8. Financial Statements, Note 10, "Derivative Instruments and Hedging Activities" in our Annual Report, due to the nature of our counterparty agreements and the fact that we are not subject to master netting arrangements, we are not able to net positions with the same counterparty and, therefore, present our derivative positions on a gross basis in our unaudited condensed consolidated balance sheets. Our significant derivative positions have not changed considerably since December 31, 2024.
Net Investment Hedges
On May 29, 2024, concurrent with the issuance of the EUR 2032 Notes, we designated the principal of the notes as a non-derivative net investment hedge of our investment in a EUR functional currency subsidiary in order to hedge a portion of the related foreign currency translational impacts. Accordingly, we record the changes in the carrying value of the EUR 2032 Notes due to fluctuations in the spot rate to AOCI.
Additionally, on May 29, 2024, we de-designated the principal of the EUR 800 million 1.25% notes and as a result, the associated net investment hedge was discontinued. The accumulated gains and losses associated with the settled net investment hedge will remain in AOCI until a liquidation or deconsolidation event at which point the accumulated gains and losses will be reclassified into earnings.
Derivative Fair Value Measurements
We utilize market approaches to estimate the fair value of our derivative instruments by discounting anticipated future cash flows derived from the derivative's contractual terms and observable market interest, foreign exchange and commodity rates. The fair values of our derivatives also include credit risk adjustments to account for our counterparties' credit risk, as well as our own non-performance risk, as appropriate.
The table below summarizes our derivative assets (liabilities) that were measured at fair value as of September 30, 2025 and December 31, 2024. The fair value for all derivative contracts as of September 30, 2025 and December 31, 2024 were valued using significant other observable inputs, which are Level 2 inputs.
| As of | |||||||||||
| September 30, 2025 | December 31, 2024 | ||||||||||
| (In millions) | |||||||||||
| Forward starting interest rate swaps | $ | 70.8 | $ | 96.3 | |||||||
| Foreign currency forwards | 2.4 | 10.6 | |||||||||
| Commodity swaps and options | 40.6 | 3.7 | |||||||||
| Total | $ | 113.8 | $ | 110.6 |
As of September 30, 2025 and December 31, 2024, we had no significant transfers between Level 1 and Level 2. New derivative contracts transacted during the nine months ended September 30, 2025, were all included in Level 2.
Results of Period Derivative Activity
The tables below include the results of our derivative activity on our unaudited condensed consolidated balance sheets as of September 30, 2025 and December 31, 2024 and our unaudited condensed consolidated statements of operations for the three and nine months ended September 30, 2025 and September 30, 2024.
Fair Value of Derivative Instruments on the Unaudited Condensed Consolidated Balance Sheets (In millions):
| As of September 30, 2025 | |||||||||||||||||||||||||||||
| Asset derivatives | Liability derivatives | ||||||||||||||||||||||||||||
| Notional amount | Balance sheet location | Fair value | Balance sheet location | Fair value | |||||||||||||||||||||||||
| Derivatives designated as hedging instruments | |||||||||||||||||||||||||||||
| Forward starting interest rate swaps | $ | 1,000.0 | Other current assets | $ | 70.8 | Accounts payable and other current liabilities | $ | — | |||||||||||||||||||||
| Foreign currency forwards | $ | 93.9 | Other current assets | 2.2 | Accounts payable and other current liabilities | — | |||||||||||||||||||||||
| Other non-current assets | 0.2 | Other liabilities | — | ||||||||||||||||||||||||||
| Total derivatives designated as hedging instruments | $ | 73.2 | $ | — | |||||||||||||||||||||||||
| Derivatives not designated as hedging instruments | |||||||||||||||||||||||||||||
| Commodity swaps(1) | $ | 355.4 | Other current assets | $ | 44.6 | Accounts payable and other current liabilities | $ | (6.0) | |||||||||||||||||||||
| Other non-current assets | 2.3 | Other liabilities | (0.3) | ||||||||||||||||||||||||||
| Total derivatives not designated as hedging instruments | $ | 46.9 | $ | (6.3) |
| As of December 31, 2024 | |||||||||||||||||||||||||||||
| Asset derivatives | Liability derivatives | ||||||||||||||||||||||||||||
| Notional amount | Balance sheet location | Fair value | Balance sheet location | Fair value | |||||||||||||||||||||||||
| Derivatives designated as hedging instruments | |||||||||||||||||||||||||||||
| Forward starting interest rate swaps | $ | 1,000.0 | Other non-current assets | $ | 96.3 | Other liabilities | $ | — | |||||||||||||||||||||
| Foreign currency forwards | $ | 196.2 | Other current assets | 7.7 | Accounts payable and other current liabilities | — | |||||||||||||||||||||||
| Other non-current assets | 2.9 | Other liabilities | — | ||||||||||||||||||||||||||
| Total derivatives designated as hedging instruments | $ | 106.9 | $ | — | |||||||||||||||||||||||||
| Derivatives not designated as hedging instruments | |||||||||||||||||||||||||||||
| Commodity swaps(1) | $ | 376.4 | Other current assets | $ | 15.1 | Accounts payable and other current liabilities | $ | (10.5) | |||||||||||||||||||||
| Other non-current assets | 1.5 | Other liabilities | (2.4) | ||||||||||||||||||||||||||
| Commodity options(1) | $ | 24.6 | Other current assets | 0.3 | Accounts payable and other current liabilities | (0.3) | |||||||||||||||||||||||
| Total derivatives not designated as hedging instruments | $ | 16.9 | $ | (13.2) |
(1)Notional includes offsetting buy and sell positions, shown in terms of absolute value. Buy and sell positions are shown gross in the asset and/or liability position, as appropriate.
The Pretax Effect of Cash Flow Hedge Accounting on Other Comprehensive Income (Loss), Accumulated Other Comprehensive Income (Loss) and Income (Loss) (In millions):
| Derivatives in cash flow hedge relationships | Amount of gain (loss) recognized in OCI on derivatives | Location of gain (loss) reclassified from AOCI into income | Amount of gain (loss) recognized from AOCI into income on derivatives | |||||||||||||||||
| Three Months Ended September 30, 2025 | ||||||||||||||||||||
| Forward starting interest rate swaps | $ | (1.2) | Interest income (expense), net | $ | (0.7) | |||||||||||||||
| Foreign currency forwards | 2.6 | Cost of goods sold | 0.8 | |||||||||||||||||
| Other non-operating income (expense), net | (0.2) | |||||||||||||||||||
| Total | $ | 1.4 | $ | (0.1) | ||||||||||||||||
| Three Months Ended September 30, 2024 | ||||||||||||||||||||
| Forward starting interest rate swaps | $ | (35.8) | Interest income (expense), net | $ | (0.8) | |||||||||||||||
| Foreign currency forwards | (2.3) | Cost of goods sold | 0.9 | |||||||||||||||||
| Other non-operating income (expense), net | (0.1) | |||||||||||||||||||
| Total | $ | (38.1) | $ | — |
| Derivatives in cash flow hedge relationships | Amount of gain (loss) recognized in OCI on derivatives | Location of gain (loss) reclassified from AOCI into income | Amount of gain (loss) recognized from AOCI into income on derivative | |||||||||||||||||
| Nine Months Ended September 30, 2025 | ||||||||||||||||||||
| Forward starting interest rate swaps | $ | (25.5) | Interest income (expense), net | $ | (2.4) | |||||||||||||||
| Foreign currency forwards | (5.5) | Cost of goods sold | 3.5 | |||||||||||||||||
| Other non-operating income (expense), net | (0.6) | |||||||||||||||||||
| Total | $ | (31.0) | $ | 0.5 | ||||||||||||||||
| Nine Months Ended September 30, 2024 | ||||||||||||||||||||
| Forward starting interest rate swaps | $ | (2.4) | Interest income (expense), net | $ | (2.5) | |||||||||||||||
| Foreign currency forwards | 4.0 | Cost of goods sold | 3.0 | |||||||||||||||||
| Other non-operating income (expense), net | (0.5) | |||||||||||||||||||
| Total | $ | 1.6 | $ | — |
The Pretax Effect of Net Investment Hedge Accounting on Other Comprehensive Income (Loss), Accumulated Other Comprehensive Income (Loss) and Income (Loss) (In millions):
| Net investment hedge relationships | Amount of gain (loss) recognized in OCI**(1)** | |||||||
| Three Months Ended September 30, 2025 | ||||||||
| EUR 800 million 3.8% senior notes due June 2032 | $ | 4.2 | ||||||
| Three Months Ended September 30, 2024 | ||||||||
| EUR 800 million 3.8% senior notes due June 2032 | $ | (33.6) | ||||||
| Net investment hedge relationships | Amount of gain (loss) recognized in OCI (1) | |||||||||||||||||||
| Nine Months Ended September 30, 2025 | ||||||||||||||||||||
| EUR 800 million 3.8% senior notes due June 2032 | $ | (109.9) | ||||||||||||||||||
| Nine Months Ended September 30, 2024 | ||||||||||||||||||||
| EUR 800 million 1.25% senior notes due July 2024 | $ | 14.5 | ||||||||||||||||||
| EUR 800 million 3.8% senior notes due June 2032 | (22.1) | |||||||||||||||||||
| Total | $ | (7.6) |
(1)The cumulative translation adjustments related to our net investment hedges remain in AOCI until the respective underlying net investment is sold or liquidated. During the three and nine months ended September 30, 2025 and September 30, 2024, we did not reclassify any amounts related to net investment hedges from AOCI into earnings whether due to ineffectiveness, a sale or liquidation.
As of September 30, 2025, we expect pretax net gains of approximately $2 million recorded in AOCI that will be reclassified into earnings within the next 12 months. Our foreign currency forwards, which are designated in cash flow hedge relationships, are typically hedged over a maximum length of approximately 3 years. We use forward starting interest rate swaps to hedge our forecasted debt issuances and the maximum length of time is based on our forecasted debt issuances.
The Effect of Derivatives Not Designated as Hedging Instruments on the Unaudited Condensed Consolidated Statements of Operations (In millions):
| Derivatives not in hedging relationships | Location of gain (loss) recognized in income on derivatives | Amount of gain (loss) recognized in income on derivatives | ||||||||||||
| Three Months Ended September 30, 2025 | ||||||||||||||
| Commodity swaps | Cost of goods sold | $ | 28.3 | |||||||||||
| Three Months Ended September 30, 2024 | ||||||||||||||
| Commodity swaps | Cost of goods sold | $ | (13.1) | |||||||||||
| Derivatives not in hedging relationships | Location of gain (loss) recognized in income on derivatives | Amount of gain (loss) recognized in income on derivatives | ||||||||||||
| Nine Months Ended September 30, 2025 | ||||||||||||||
| Commodity swaps | Cost of goods sold | $ | 61.1 | |||||||||||
| Nine Months Ended September 30, 2024 | ||||||||||||||
| Commodity swaps | Cost of goods sold | $ | (10.8) | |||||||||||
9. Income Tax
| Three Months Ended | Nine Months Ended | ||||||||||||||||||||||
| September 30, 2025 | September 30, 2024 | September 30, 2025 | September 30, 2024 | ||||||||||||||||||||
| Effective tax rate | 16 | % | 31 | % | 14 | % | 25 | % |
The lower effective tax rate for the three and nine months ended September 30, 2025, compared to the prior year, was primarily due to the impact of the $3,645.7 million partial goodwill impairment, which a portion of the goodwill was not deductible for tax purposes. The decrease was also due to the cycling of a $16.4 million valuation allowance which was recorded on deferred tax assets in the third quarter of 2024 as a result of the divestment of certain of our U.S. craft businesses and generated a capital loss for U.S. tax purposes, as well as the cycling of a $45.8 million increase in the mandatorily redeemable NCI liability of CBPL to the final redemption value, which was recorded to interest expense in the third quarter of 2024 and was non-deductible for tax purposes.
Our effective tax rate can be volatile and may change with, among other things, the amount and source of pretax 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.
On July 4, 2025, the OBBBA was enacted into law in the U.S. The OBBBA includes various provisions which permanently extend certain expiring provisions from the Tax Cuts and Jobs Act of 2017, many of which have different effective dates. Changes in the OBBBA include the accelerated tax recovery for certain capital investments and research and development expenditures, and changes to the business interest expense limitation. Additionally, the OBBBA includes changes to the taxation of foreign income for U.S.-domiciled businesses. While the OBBBA did not materially affect our effective tax rate for the three or nine months ended September 30, 2025, it reduced our cash tax payments by approximately $60 million through the third quarter of 2025.
10. Commitments and Contingencies
Litigation and Other Disputes and Environmental
Related to litigation, other disputes and environmental issues, we had an aggregate accrued contingent liability of $13.1 million and $71.1 million as of September 30, 2025 and December 31, 2024, respectively. While we cannot predict the eventual aggregate cost for litigation, other disputes and environmental matters in which we are currently involved, based on review with legal counsel, we believe adequate reserves have been provided for losses that are probable and estimable. For all matters unless otherwise noted below, we believe that any reasonably possible losses in excess of the amounts accrued are immaterial to our unaudited condensed consolidated financial statements. However, litigation is subject to inherent uncertainties and an adverse result in these, or other matters, may arise from time to time that may harm our business. Our litigation, other disputes and environmental issues are discussed in further detail within Part II.—Item 8. Financial Statements, Note 13, "Commitments and Contingencies" in our Annual Report and any updates for the nine months ended September 30, 2025, are discussed below.
On February 12, 2018, Stone Brewing Company filed a trademark infringement lawsuit in federal court in the Southern District of California against Molson Coors Beverage Company USA LLC, a wholly owned subsidiary of our Company, alleging that the Keystone brand had "rebranded" itself as "Stone" and was marketing itself in a manner confusingly similar to Stone Brewing Company's registered Stone trademark. As of December 31, 2024, the Company had a recorded accrued liability of $60.6 million within accounts payable and other current liabilities on our consolidated balance sheets. On January 29, 2025, the Company paid $60.6 million in final resolution of this matter.
Regulatory Contingencies
An Early Implementation Agreement ("EIA") was entered into on May 23, 2024, between the Province of Ontario and Molson Canada 2005, a wholly owned indirect subsidiary of our Company, Labatt Brewing Company Limited, Sleeman Breweries Ltd. (collectively, the "Representative Owners") and BRI, operating under the name The Beer Store ("TBS") concerning the intended features of the future marketplace for beer distribution and retail systems in the Province of Ontario. The EIA was effective July 18, 2024, with provisions continuing until December 31, 2030, except certain provisions which end December 31, 2025. TBS shall remain the primary distributor of beer to all retailers from the commencement date of the EIA to the end of the agreement, December 31, 2030.
The Province of Ontario provided financial support to TBS and the Representative Owners of CAD 225 million through reimbursement of costs incurred in connection with the early implementation and to TBS in connection with the operation of the agreed upon retail footprint through December 31, 2025. The EIA required TBS to maintain at least 386 retail locations in Ontario to support recycling, cash and carry and to preserve employment through June 30, 2025. Subsequently, TBS has the right to close retail locations to reduce the number of retail locations to a minimum of 300 by December 31, 2025. From January 1, 2026, onward, TBS will have full discretion to maintain an adequate number of retail locations determined by TBS in its sole and absolute discretion. Due to the increased competition from grocery stores and convenience stores, TBS expects to close stores during the year ended December 31, 2025, in line with the allowable reduction under the EIA with future closures dependent on the evolution of the expanded retail marketplace funded by the reimbursement costs received. We continue to evaluate the impacts of the EIA and the expected future marketplace for beer distribution and retail systems in the Province of Ontario on our results of operations.
Guarantees and Indemnities
We guarantee indebtedness and other obligations to banks and other third parties for some of our equity method investments and consolidated subsidiaries. As of September 30, 2025 and December 31, 2024, the unaudited condensed consolidated balance sheets include liabilities related to these guarantees of $15.2 million and $34.2 million, respectively.
Separately, our Cervejarias Kaiser Brasil S.A. ("Kaiser") indemnities are discussed in further detail within Part II.—Item 8. Financial Statements, Note 13, "Commitments and Contingencies" in our Annual Report and did not significantly change during the nine months ended September 30, 2025.
11. Accumulated Other Comprehensive Income (Loss)
| MCBC stockholders' equity | |||||||||||||||||||||||||||||
| Foreign currency translation adjustments | Gain (loss) on derivative instruments | Pension and postretirement benefit adjustments | Equity method investments | Accumulated other comprehensive income (loss) | |||||||||||||||||||||||||
| (In millions) | |||||||||||||||||||||||||||||
| As of December 31, 2024 | $ | (1,087.0) | $ | 83.6 | $ | (342.4) | $ | (16.6) | $ | (1,362.4) | |||||||||||||||||||
| Foreign currency translation adjustments | 325.5 | — | — | — | 325.5 | ||||||||||||||||||||||||
| Gain (loss) recognized on net investment hedges | (109.9) | — | — | — | (109.9) | ||||||||||||||||||||||||
| Unrealized gain (loss) recognized on derivative instruments | — | (31.0) | — | — | (31.0) | ||||||||||||||||||||||||
| Derivative instrument activity reclassified from other comprehensive income (loss) | — | (0.5) | — | — | (0.5) | ||||||||||||||||||||||||
| Pension and other postretirement activity reclassified from other comprehensive income (loss) | — | — | (5.7) | — | (5.7) | ||||||||||||||||||||||||
| Ownership share of unconsolidated subsidiaries' other comprehensive income (loss) | — | — | — | 0.3 | 0.3 | ||||||||||||||||||||||||
| Tax benefit (expense) | 29.5 | 7.9 | 1.3 | (0.1) | 38.6 | ||||||||||||||||||||||||
| As of September 30, 2025 | $ | (841.9) | $ | 60.0 | $ | (346.8) | $ | (16.4) | $ | (1,145.1) |
12. Other Operating Income (Expense), net
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 within our unaudited condensed consolidated statements of operations.
| Three Months Ended | Nine Months Ended | ||||||||||||||||||||||
| September 30, 2025 | September 30, 2024 | September 30, 2025 | September 30, 2024 | ||||||||||||||||||||
| (In millions) | |||||||||||||||||||||||
| Restructuring(1) | |||||||||||||||||||||||
| Employee-related charges | $ | (0.9) | $ | (2.2) | $ | (9.2) | $ | (1.1) | |||||||||||||||
| Asset abandonment and other restructuring costs | (0.4) | (21.9) | (20.1) | (21.9) | |||||||||||||||||||
| Intangible and tangible asset impairments, excluding goodwill(2) | (273.9) | — | (273.9) | — | |||||||||||||||||||
| Gains (losses) on disposals and other(1) | — | (41.7) | 2.9 | (36.4) | |||||||||||||||||||
| Other operating income (expense), net | $ | (275.2) | $ | (65.8) | $ | (300.3) | $ | (59.4) |
(1)During the third quarter of 2024, we made the decision to wind down or sell certain of our U.S. craft businesses and related facilities and recorded employee-related and asset abandonment charges, including accelerated depreciation in excess of normal depreciation. In addition, during the third quarter of 2024, we recognized a loss of $41.1 million related to the disposal of the sold businesses. During the first quarter of 2025, we incurred incremental accelerated depreciation in excess of normal depreciation of $17.9 million. Restructuring charges related to these actions are substantially complete and any remaining future charges are expected to be immaterial.
(2)During the third quarter of 2025, we recognized a partial impairment charge of $198.6 million related to the Staropramen family of brands indefinite-lived intangible asset in our EMEA&APAC segment. Also during the third quarter of 2025, we recognized a full impairment charge of $75.3 million related to the Blue Run Spirits definite-lived intangible asset in our Americas segment. See Part I.—Item 1. Financial Statements, Note 5, "Goodwill and Intangible Assets" for further information.
13. 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 Latin 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 primarily includes certain financing-related activities such as interest expense and interest income as well as foreign exchange gains and losses on intercompany balances. Unallocated activity also includes 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 meanwhile all other components remain in Unallocated.
Summarized Financial Information
No single customer accounted for more than 10% of our consolidated net sales for the three and nine months ended September 30, 2025 and September 30, 2024.
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 royalties received from and sales to the EMEA&APAC segment.
The following tables present net sales and other activity by segment to arrive at income (loss) before income taxes as well as a reconciliation of amounts shown as income (loss) before income taxes to net income (loss) attributable to MCBC:
| For the three months ended September 30, 2025 | |||||||||||||||||||||||||||||
| Americas | EMEA&APAC | Unallocated | Inter-segment net sales eliminations | Consolidated | |||||||||||||||||||||||||
| (In millions) | |||||||||||||||||||||||||||||
| Net sales | $ | 2,260.0 | $ | 721.0 | $ | — | $ | (7.5) | $ | 2,973.5 | |||||||||||||||||||
| Cost of goods sold | (1,350.6) | (468.2) | 11.3 | 7.5 | (1,800.0) | ||||||||||||||||||||||||
| Marketing and sales expenses | (291.0) | (75.5) | — | — | (366.5) | ||||||||||||||||||||||||
| General and administrative expenses | (231.3) | (88.9) | — | — | (320.2) | ||||||||||||||||||||||||
| Goodwill impairment | (3,645.7) | — | — | — | (3,645.7) | ||||||||||||||||||||||||
| Other operating income (expense), net | (75.6) | (199.6) | — | — | (275.2) | ||||||||||||||||||||||||
| Equity income (loss) | 3.0 | — | — | — | 3.0 | ||||||||||||||||||||||||
| Interest expense | (0.6) | (0.8) | (61.3) | — | (62.7) | ||||||||||||||||||||||||
| Interest income | — | — | 6.7 | — | 6.7 | ||||||||||||||||||||||||
| Other segment items(1) | (13.6) | 1.6 | 3.6 | — | (8.4) | ||||||||||||||||||||||||
| Income (loss) before income taxes | $ | (3,345.4) | $ | (110.4) | $ | (39.7) | $ | — | $ | (3,495.5) | |||||||||||||||||||
| Income tax benefit (expense) | 558.6 | ||||||||||||||||||||||||||||
| Net income (loss) | (2,936.9) | ||||||||||||||||||||||||||||
| Net (income) loss attributable to noncontrolling interests | 9.3 | ||||||||||||||||||||||||||||
| Net income (loss) attributable to MCBC | $ | (2,927.6) |
| For the three months ended September 30, 2024 | |||||||||||||||||||||||||||||
| Americas | EMEA&APAC | Unallocated | Inter-segment net sales eliminations | Consolidated | |||||||||||||||||||||||||
| (In millions) | |||||||||||||||||||||||||||||
| Net sales | $ | 2,345.0 | $ | 704.4 | $ | — | $ | (6.7) | $ | 3,042.7 | |||||||||||||||||||
| Cost of goods sold | (1,403.1) | (441.9) | (1.9) | 6.7 | (1,840.2) | ||||||||||||||||||||||||
| Marketing and sales expenses | (282.4) | (70.8) | — | — | (353.2) | ||||||||||||||||||||||||
| General and administrative expenses | (239.3) | (92.2) | — | — | (331.5) | ||||||||||||||||||||||||
| Other operating income (expense), net | (65.3) | (0.5) | — | — | (65.8) | ||||||||||||||||||||||||
| Equity income (loss) | (0.8) | — | — | — | (0.8) | ||||||||||||||||||||||||
| Interest expense | (0.4) | (46.7) | (59.3) | — | (106.4) | ||||||||||||||||||||||||
| Interest income | 0.1 | (0.6) | 13.8 | — | 13.3 | ||||||||||||||||||||||||
| Other segment items(1) | — | (0.1) | (26.6) | — | (26.7) | ||||||||||||||||||||||||
| Income (loss) before income taxes | $ | 353.8 | $ | 51.6 | $ | (74.0) | $ | — | $ | 331.4 | |||||||||||||||||||
| Income tax benefit (expense) | (102.6) | ||||||||||||||||||||||||||||
| Net income (loss) | 228.8 | ||||||||||||||||||||||||||||
| Net (income) loss attributable to noncontrolling interests | (29.0) | ||||||||||||||||||||||||||||
| Net income (loss) attributable to MCBC | $ | 199.8 |
| For the nine months ended September 30, 2025 | |||||||||||||||||||||||||||||
| Americas | EMEA&APAC | Unallocated | Inter-segment net sales eliminations | Consolidated | |||||||||||||||||||||||||
| (In millions) | |||||||||||||||||||||||||||||
| Net sales | $ | 6,646.6 | $ | 1,852.2 | $ | — | $ | (20.4) | $ | 8,478.4 | |||||||||||||||||||
| Cost of goods sold | (3,988.9) | (1,240.6) | 37.0 | 20.4 | (5,172.1) | ||||||||||||||||||||||||
| Marketing and sales expenses | (837.4) | (199.1) | — | — | (1,036.5) | ||||||||||||||||||||||||
| General and administrative expenses | (725.6) | (270.9) | — | — | (996.5) | ||||||||||||||||||||||||
| Goodwill impairment | (3,645.7) | — | — | — | (3,645.7) | ||||||||||||||||||||||||
| Other operating income (expense), net | (93.1) | (207.2) | — | — | (300.3) | ||||||||||||||||||||||||
| Equity income (loss) | 11.5 | — | — | — | 11.5 | ||||||||||||||||||||||||
| Interest expense | (1.9) | (2.9) | (180.8) | — | (185.6) | ||||||||||||||||||||||||
| Interest income | — | 0.2 | 14.3 | — | 14.5 | ||||||||||||||||||||||||
| Other segment items(1) | 36.6 | 3.5 | 7.9 | — | 48.0 | ||||||||||||||||||||||||
| Income (loss) before income taxes | $ | (2,597.9) | $ | (64.8) | $ | (121.6) | $ | — | $ | (2,784.3) | |||||||||||||||||||
| Income tax benefit (expense) | 394.8 | ||||||||||||||||||||||||||||
| Net income (loss) | (2,389.5) | ||||||||||||||||||||||||||||
| Net (income) loss attributable to noncontrolling interests | 11.6 | ||||||||||||||||||||||||||||
| Net income (loss) attributable to MCBC | $ | (2,377.9) |
| For the nine months ended September 30, 2024 | |||||||||||||||||||||||||||||
| Americas | EMEA&APAC | Unallocated | Inter-segment net sales eliminations | Consolidated | |||||||||||||||||||||||||
| (In millions) | |||||||||||||||||||||||||||||
| Net sales | $ | 7,066.3 | $ | 1,842.4 | $ | — | $ | (17.3) | $ | 8,891.4 | |||||||||||||||||||
| Cost of goods sold | (4,244.3) | (1,195.4) | 26.9 | 17.3 | (5,395.5) | ||||||||||||||||||||||||
| Marketing and sales expenses | (858.9) | (197.5) | — | — | (1,056.4) | ||||||||||||||||||||||||
| General and administrative expenses | (730.2) | (281.2) | — | — | (1,011.4) | ||||||||||||||||||||||||
| Other operating income (expense), net | (65.3) | 5.9 | — | — | (59.4) | ||||||||||||||||||||||||
| Equity income (loss) | (3.6) | — | — | — | (3.6) | ||||||||||||||||||||||||
| Interest expense | (1.2) | (49.1) | (169.3) | — | (219.6) | ||||||||||||||||||||||||
| Interest income | 0.2 | 0.3 | 26.4 | — | 26.9 | ||||||||||||||||||||||||
| Other segment items(1) | (1.5) | (3.6) | (10.6) | — | (15.7) | ||||||||||||||||||||||||
| Income (loss) before income taxes | $ | 1,161.5 | $ | 121.8 | $ | (126.6) | $ | — | $ | 1,156.7 | |||||||||||||||||||
| Income tax benefit (expense) | (292.7) | ||||||||||||||||||||||||||||
| Net income (loss) | 864.0 | ||||||||||||||||||||||||||||
| Net (income) loss attributable to noncontrolling interests | (29.4) | ||||||||||||||||||||||||||||
| Net income (loss) attributable to MCBC | $ | 834.6 |
(1)Other segment items include other pension and postretirement benefit (cost), net and other non-operating income (expense), net.
The following table presents total assets by segment as of September 30, 2025 and December 31, 2024:
| Total Assets | |||||||||||
| As of | |||||||||||
| September 30, 2025 | December 31, 2024 | ||||||||||
| (In millions) | |||||||||||
| Americas | $ | 19,279.6 | $ | 22,706.8 | |||||||
| EMEA&APAC | 3,593.8 | 3,357.5 | |||||||||
| Consolidated | $ | 22,873.4 | $ | 26,064.3 |
The following table presents total property, plant and equipment depreciation and intangible asset amortization as well as total capital expenditures by segment for the three and nine months ended September 30, 2025 and September 30, 2024:
| Three Months Ended | Nine Months Ended | ||||||||||||||||||||||
| September 30, 2025 | September 30, 2024 | September 30, 2025 | September 30, 2024 | ||||||||||||||||||||
| Depreciation and amortization | (In millions) | ||||||||||||||||||||||
| Americas | $ | 131.1 | $ | 133.1 | $ | 395.0 | $ | 387.1 | |||||||||||||||
| EMEA&APAC | 48.7 | 42.3 | 135.2 | 125.0 | |||||||||||||||||||
| Consolidated | $ | 179.8 | $ | 175.4 | $ | 530.2 | $ | 512.1 | |||||||||||||||
| Capital expenditures | |||||||||||||||||||||||
| Americas | $ | 85.6 | $ | 117.6 | $ | 376.7 | $ | 416.6 | |||||||||||||||
| EMEA&APAC | 47.5 | 53.2 | 157.0 | 146.4 | |||||||||||||||||||
| Consolidated | $ | 133.1 | $ | 170.8 | $ | 533.7 | $ | 563.0 |
Previous: Cover and table of contents · Next: Item 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS