Leases

12 Months Ended

Dec. 31, 2021

Montreal Brewery Sale and Leaseback Transaction

In June 2019, we completed the sale of our Montreal brewery for $96.2 million, resulting in a $61.3 million gain, which was recorded as a special item for the year ended December 31, 2019. In conjunction with the sale, we agreed to lease back the

existing property to continue operations on an uninterrupted basis for a period up to 5 years with early termination options at our discretion, while our new brewery in Longueuil, Québec was being constructed. Accordingly, for the year ended December 31, 2019, we recorded operating lease right-of-use assets and liabilities of approximately CAD 6 million assuming a lease term that is coterminous with the construction of our new brewery, which began operations during the fourth quarter of 2021. However, due to the uncertainty inherent in our estimates, the term of the brewery lease is subject to reassessment. Once the existing property has been entirely redeveloped by the purchaser, we plan to lease a minor portion of the future space for administrative and other purposes. We evaluated this transaction pursuant to the accounting guidance for sale and leaseback transactions and concluded that the relevant criteria were met for full gain recognition upon completion of the transaction in the second quarter of 2019.

Lease Financial Information

For the years ended December 31, 2021, December 31, 2020 and December 31, 2019, lease expense (including immaterial short-term and variable lease costs) was as follows.


	For the years ended
	December 31, 2021		December 31, 2020		December 31, 2019
	(In millions)
Operating lease expense	$	73.2	$	71.4	$	71.0
Finance lease expense	10.4		11.5		12.1
Total lease expense	$	83.6	$	82.9	$	83.1

We recorded impairment losses on certain right-of-use assets, primarily related to our Denver, Colorado office lease, during 2020 and 2019 as discussed in Note 7, "Special Items."

Supplemental cash flow information related to leases for the years ended December 31, 2021, December 31, 2020 and December 31, 2019 was as follows.


	For the years ended
	December 31, 2021		December 31, 2020		December 31, 2019
	(In millions)
Cash paid for amounts included in the measurements of lease liabilities:
Operating cash flows from operating leases	$	56.8	$	53.2	$	52.2
Operating cash flows from finance leases	$	4.5	$	7.6	$	3.8
Financing cash flows from finance leases	$	3.6	$	34.5	$	2.8
Supplemental non-cash information on right-of-use assets obtained in exchange for new lease liabilities:
Operating leases	$	34.0	$	28.5	$	45.6
Finance leases	$	7.5	$	5.4	$	9.2

Supplemental balance sheet information related to leases as of December 31, 2021 and December 31, 2020 was as follows:


		As of
		December 31, 2021		December 31, 2020
	Balance Sheet Classification	(In millions)
Operating Leases
Operating lease right-of-use assets	Other assets	$	119.1	$	136.2
Current operating lease liabilities	Accounts payable and other current liabilities	$	45.4	$	47.1
Non-current operating lease liabilities	Other liabilities	87.8		106.4
Total operating lease liabilities		$	133.2	$	153.5

Finance Leases
Finance lease right-of-use assets	Properties, net	$	61.5	$	60.5
Current finance lease liabilities	Current portion of long-term debt and short-term borrowings	$	4.6	$	4.1
Non-current finance lease liabilities	Long-term debt	62.6		59.9
Total finance lease liabilities		$	67.2	$	64.0

The weighted-average remaining lease term and discount rate as of December 31, 2021 are as follows:


	Weighted-Average Remaining Lease Term (Years)	Weighted-Average Discount Rate
Operating leases	4.1	3.5%
Finance leases	11.9	6.5%

Based on foreign exchange rates as of December 31, 2021, maturities of lease liabilities were as follows:


	Operating Leases		Finance Leases
	(In millions)
2022	$	49.8	$	8.4
2023	37.0		8.1
2024	22.2		8.2
2025	14.7		7.8
2026	10.6		11.6
Thereafter	9.6		54.4
Total lease payments	$	143.9	$	98.5
Less: interest	(10.7)		(31.3)
Present value of lease liabilities	$	133.2	$	67.2

Executed leases that have not yet commenced as of December 31, 2021 are immaterial except for a railcar lease with total undiscounted payments of $27.7 million expected to commence in 2022.

Leases