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Debt
 12 Months Ended
Dec. 31, 2021
Debt Disclosure [Abstract]  
Debt Debt
Debt Obligations
 As of
 December 31, 2021December 31, 2020
 (In millions)
Long-term debt:  
CAD 500 million 2.84% notes due July 2023(1)(2)
$395.7 $392.9 
CAD 500 million 3.44% notes due July 2026(1)(2)
395.7 392.9 
$1.0 billion 2.1% notes due July 2021(3)
— 1,000.0 
$500 million 3.5% notes due May 2022(4)(5)
500.9 503.7 
$2.0 billion 3.0% notes due July 2026(1)
2,000.0 2,000.0 
$1.1 billion 5.0% notes due May 2042(5)
1,100.0 1,100.0 
$1.8 billion 4.2% notes due July 2046(1)
1,800.0 1,800.0 
EUR 800 million 1.25% notes due July 2024(1)
909.6 977.3 
Finance leases67.2 64.0 
Other30.7 33.8 
Less: unamortized debt discounts and debt issuance costs(44.6)(50.3)
Total long-term debt (including current portion)7,155.2 8,214.3 
Less: current portion of long-term debt(508.0)(1,006.1)
Total long-term debt$6,647.2 $7,208.2 
Short-term borrowings:
Short-term borrowings(6)
$6.9 $14.0 
Current portion of long-term debt508.0 1,006.1 
Current portion of long-term debt and short-term borrowings$514.9 $1,020.1 
(1)On July 7, 2016, MCBC issued approximately $5.3 billion senior notes with portions maturing from July 15, 2019 through July 15, 2046 ("2016 USD Notes"), and EUR 800 million senior notes maturing July 15, 2024 ("2016 EUR Notes"), and Molson Coors International L.P., completed a private placement of CAD 1.0 billion senior notes maturing July 15, 2023, and July 15, 2026 ("2016 CAD Notes"), in order to partially fund the financing of the Acquisition (2016 USD Notes, 2016 EUR Notes and 2016 CAD Notes, collectively, the "2016 Notes"). These issuances resulted in total proceeds of approximately $6.9 billion, net of underwriting fees and discounts of $36.5 million and $17.7 million, respectively. Total debt issuance costs capitalized in connection with these notes including underwriting fees, discounts and other financing related costs, were approximately $65 million and are being amortized over the respective terms of the 2016 Notes. The 2016 Notes began accruing interest upon issuance, with semi-annual payments due on the 2016 USD Notes and 2016 CAD Notes in January and July beginning in 2017, and annual interest payments due on the 2016 EUR Notes in July beginning in 2017.
(2)We entered into forward starting interest rate swap agreements to hedge interest rate volatility for a 10 year period until they were settled on September 18, 2015. We are amortizing a portion of the resulting loss from AOCI to interest expense over the remaining term of the 2016 CAD Notes, as defined below, up to the full 10-year term of the interest rate swap agreements. The amortizing loss resulted in an increase in our effective cost of borrowing compared to the stated coupon rates by 0.60% on the 2016 CAD Notes. See Note 16, "Derivative Instruments and Hedging Activities" for further details on the forward starting interest rate swaps.
(3)We repaid our $1.0 billion 2.1% notes at maturity on July 15, 2021, using a combination of commercial paper borrowings and cash on hand and also settled the associated cross currency swap. Prior to settlement in July 2021, the cross currency swaps economically converted a portion of the repaid $1.0 billion 2.1% notes and associated interest to EUR denominated, which resulted in a EUR interest rate received of 0.71%. See Note 16, "Derivative Instruments and Hedging Activities" for further details.
(4)During 2014, we entered into interest rate swaps to economically convert our fixed rate $500 million 3.5% notes due 2022 ("$500 million notes") to floating rate debt. As a result of fair value hedge accounting, the carrying value of the
$500 million notes included a cumulative adjustment for the change in fair value of $18.1 million at the time of termination of the swaps. Beginning in the fourth quarter of 2015, we began amortizing this cumulative adjustment to interest expense over the remaining term of the $500 million notes and will accordingly decrease the annual effective interest rate for the remaining term by 0.56%. The fair value adjustments and subsequent amortization have been excluded from the aggregate principal debt maturities table presented below.
The balance of the fair value hedges being amortized over the life of the note were $0.9 million and $3.7 million as of December 31, 2021 and December 31, 2020, respectively. The balance as of December 31, 2021 was included within the current portion of long-term debt and short-term borrowings of the consolidated balance sheet and the balance as of December 31, 2020 was included within long-term debt of the consolidated balance sheet.
(5)On May 3, 2012, we issued approximately $1.9 billion of senior notes with portions maturing in 2017, 2022 and 2042. The issuance resulted in total proceeds, before expenses, of approximately $1.9 billion, net of underwriting fees and discounts of $14.7 million and $4.6 million, respectively. Total debt issuance costs capitalized in connection with these senior notes, including the underwriting fees and discounts, were approximately $18.0 million and are being amortized over the term of the notes.
(6)As of December 31, 2021, we had $3.0 million in bank overdrafts and $123.1 million in bank cash related to our cross-border, cross-currency cash pool for a net positive position of $120.1 million. As of December 31, 2020, we had $11.0 million in bank overdrafts and $103.7 million in bank cash related to our cross-border, cross-currency cash pool for a net positive position of $92.7 million.
We had total outstanding borrowings of $3.9 million and $3.0 million under our JPY facilities as of December 31, 2021 and December 31, 2020, respectively. In addition, we have CAD, GBP and USD overdraft facilities under which we had no outstanding borrowings as of December 31, 2021 or December 31, 2020. A summary of our short-term facility availability is presented below. See Note 18, "Commitments and Contingencies" for further discussion related to letters of credit.
•JPY 1.3 billion line of credit at Japan TIBOR plus 0.30%
•JPY 100 million overdraft facility at Japan short-term Prime rate
•CAD unlimited overdraft facility at CAD Prime plus 0.50%
•GBP 30 million overdraft facility at GBP base rate plus 1.75%
•USD 10 million overdraft facility at USD Prime plus 5%
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 and observable market interest and foreign exchange rates. As of December 31, 2021 and December 31, 2020, the fair value of our outstanding long-term debt (including current portion of long-term debt) was approximately $7.7 billion and $9.1 billion, respectively. All senior notes are valued based on 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
We maintain a $1.5 billion revolving credit facility with a maturity date of July 7, 2024 that also allows us to issue a maximum aggregate amount of $1.5 billion in commercial paper or make other borrowings at any time at variable interest rates. We use this financing from time to time to leverage cash needs including debt repayments. During 2021, we utilized borrowings from this facility in order to fund the repayment of debt upon maturity, for working capital and general purposes. We had no borrowings drawn on this revolving credit facility and no commercial paper borrowings as of December 31, 2021 and December 31, 2020.
Debt Covenants
On June 19, 2020, we entered into an amendment to our existing revolving credit facility agreement, which among other things, revised the leverage ratios under the financial maintenance covenant for each fiscal quarter ending on or after June 30, 2020 through the maturity of the credit facility. The maximum leverage ratio, as defined by our revolving credit facility agreement as of December 31, 2021 is 4.00x net debt to EBITDA, through maturity of the credit facility.
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. As of December 31, 2021 and December 31, 2020, we were in compliance with all of these restrictions and have met all debt payment obligations. All of our outstanding senior notes as of December 31, 2021 rank pari-passu.
As of December 31, 2021, the aggregate principal debt maturities of long-term debt and short-term borrowings, based on foreign exchange rates as of December 31, 2021, for the next 5 years are as follows:
YearAmount
 (In millions)
2022$512.3 
2023400.5 
2024914.2 
20254.4 
20262,411.9 
Thereafter2,895.3 
Total$7,138.6 
The aggregate principal debt maturities in the table above excludes the present value of finance leases which are disclosed in Note 19, "Leases."
Interest
 For the years ended
 December 31, 2021December 31, 2020December 31, 2019
 (In millions)
Interest incurred$269.1 $282.3 $289.2 
Interest capitalized(8.8)(7.7)(8.3)
Interest expensed$260.3 $274.6 $280.9