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Three Months Ended March 30, 2013 | Three Months Ended June 29, 2013 | Three Months Ended September 28, 2013 | Three Months Ended December 31, 2013 | ||||||||||||||||||||||||||||
As Reported | As Adjusted | As Reported | As Adjusted | As Reported | As Adjusted | As Reported | As Adjusted | ||||||||||||||||||||||||
(In millions) | |||||||||||||||||||||||||||||||
Marketing, general and administrative expenses | $ | (285.3 | ) | $ | (293.9 | ) | $ | (304.3 | ) | $ | (319.5 | ) | $ | (307.8 | ) | $ | (290.8 | ) | $ | (296.4 | ) | $ | (289.6 | ) | |||||||
Income (loss) from continuing operations before income taxes | $ | 41.4 | $ | 32.8 | $ | 312.4 | $ | 297.2 | $ | 155.4 | $ | 172.4 | $ | 145.3 | $ | 152.1 | |||||||||||||||
Income tax benefit (expense) | $ | (3.5 | ) | $ | (2.0 | ) | $ | (34.1 | ) | $ | (30.0 | ) | $ | (32.7 | ) | $ | (37.2 | ) | $ | (13.7 | ) | $ | (14.8 | ) | |||||||
Net income (loss) attributable to Molson Coors Brewing Company | $ | 35.6 | $ | 28.5 | $ | 278.4 | $ | 267.3 | $ | 121.8 | $ | 134.3 | $ | 131.5 | $ | 137.2 | |||||||||||||||
Diluted net income (loss) attributable to Molson Coors Brewing Company per share | $ | 0.20 | $ | 0.16 | $ | 1.51 | $ | 1.45 | $ | 0.66 | $ | 0.73 | $ | 0.71 | $ | 0.74 |
Three Months Ended March 30, 2013 | Three Months Ended June 29, 2013 | Three Months Ended September 28, 2013 | Three Months Ended December 31, 2013 | ||||||||||||||||||||||||||||
As Reported | As Adjusted | As Reported | As Adjusted | As Reported | As Adjusted | As Reported | As Adjusted | ||||||||||||||||||||||||
(In millions) | |||||||||||||||||||||||||||||||
Canada | $ | 36.4 | $ | 28.4 | $ | 137.3 | $ | 128.6 | $ | 128.7 | $ | 143.6 | $ | 60.9 | $ | 62.7 | |||||||||||||||
U.S. | $ | 117.4 | $ | 117.4 | $ | 172.6 | $ | 172.6 | $ | 148.3 | $ | 148.3 | $ | 100.7 | $ | 100.7 | |||||||||||||||
Europe | $ | (3.7 | ) | $ | (5.2 | ) | $ | 81.6 | $ | 75.8 | $ | (69.5 | ) | $ | (67.4 | ) | $ | 25.9 | $ | 31.1 | |||||||||||
MCI | $ | (6.1 | ) | $ | (5.2 | ) | $ | (3.3 | ) | $ | (4.0 | ) | $ | (2.4 | ) | $ | (2.4 | ) | $ | — | $ | (0.2 | ) | ||||||||
Corporate | $ | (102.6 | ) | $ | (102.6 | ) | $ | (75.8 | ) | $ | (75.8 | ) | $ | (49.7 | ) | $ | (49.7 | ) | $ | (42.2 | ) | $ | (42.2 | ) |
Three Months Ended June 29, 2013 | Six Months Ended June 29, 2013 | ||||||||||||||
As Reported | As Adjusted | As Reported | As Adjusted | ||||||||||||
(In millions) | |||||||||||||||
Foreign currency translation adjustments, net of tax | $ | (79.4 | ) | $ | (113.6 | ) | $ | (340.7 | ) | $ | (394.3 | ) | |||
Total other comprehensive income (loss), net of tax | $ | (52.5 | ) | $ | (86.7 | ) | $ | (294.3 | ) | $ | (347.9 | ) | |||
Comprehensive income (loss) attributable to Molson Coors Brewing Company | $ | 225.9 | $ | 180.6 | $ | 19.7 | $ | (52.1 | ) |
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Three Months Ended | Six Months Ended | ||||||||||||||
June 30, 2014 | June 29, 2013 | June 30, 2014 | June 29, 2013 | ||||||||||||
(In millions) | |||||||||||||||
Canada | $ | 516.5 | $ | 558.2 | $ | 863.6 | $ | 953.8 | |||||||
Europe | 629.4 | 586.2 | 1,067.0 | 992.6 | |||||||||||
MCI | 43.7 | 34.7 | 75.9 | 61.7 | |||||||||||
Corporate | 0.4 | 0.3 | 0.7 | 0.6 | |||||||||||
Eliminations(1) | (1.5 | ) | (1.4 | ) | (2.7 | ) | (2.2 | ) | |||||||
Consolidated | $ | 1,188.5 | $ | 1,178.0 | $ | 2,004.5 | $ | 2,006.5 |
(1) | Represents inter-segment sales from the Europe segment to the MCI segment. |
Three Months Ended | Six Months Ended | ||||||||||||||
June 30, 2014 | June 29, 2013(1) | June 30, 2014 | June 29, 2013(1) | ||||||||||||
(In millions) | |||||||||||||||
Canada | $ | 120.8 | $ | 128.6 | $ | 209.1 | $ | 157.0 | |||||||
U.S. | 190.1 | 172.6 | 312.9 | 290.0 | |||||||||||
Europe | 84.5 | 75.8 | 111.5 | 70.6 | |||||||||||
MCI | (3.7 | ) | (4.0 | ) | (6.7 | ) | (9.2 | ) | |||||||
Corporate | (62.4 | ) | (75.8 | ) | (127.9 | ) | (178.4 | ) | |||||||
Consolidated | $ | 329.3 | $ | 297.2 | $ | 498.9 | $ | 330.0 |
(1) | Amounts have been adjusted to reflect the change in interim accounting for advertising expenses. See Note 1, "Basis of Presentation and Summary of Significant Accounting Policies" for further discussion. |
As of | |||||||
June 30, 2014 | December 31, 2013 | ||||||
(In millions) | |||||||
Canada | $ | 6,068.3 | $ | 6,103.2 | |||
U.S. | 2,598.6 | 2,506.5 | |||||
Europe | 6,863.9 | 6,547.7 | |||||
MCI | 86.0 | 83.3 | |||||
Corporate | 256.2 | 339.4 | |||||
Consolidated | $ | 15,873.0 | $ | 15,580.1 |
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As of | |||||||
June 30, 2014 | December 31, 2013 | ||||||
(In millions) | |||||||
Current assets | $ | 1,007.5 | $ | 798.4 | |||
Non-current assets | 8,945.9 | 8,989.3 | |||||
Total assets | $ | 9,953.4 | $ | 9,787.7 | |||
Current liabilities | $ | 998.3 | $ | 950.1 | |||
Non-current liabilities | 1,247.2 | 1,346.2 | |||||
Total liabilities | 2,245.5 | 2,296.3 | |||||
Noncontrolling interests | 23.4 | 20.7 | |||||
Owners' equity | 7,684.5 | 7,470.7 | |||||
Total liabilities and equity | $ | 9,953.4 | $ | 9,787.7 |
As of | |||||||
June 30, 2014 | December 31, 2013 | ||||||
(In millions, except percentages) | |||||||
MillerCoors owners' equity | $ | 7,684.5 | $ | 7,470.7 | |||
MCBC economic interest | 42 | % | 42 | % | |||
MCBC proportionate share in MillerCoors' equity | 3,227.5 | 3,137.7 | |||||
Difference between MCBC contributed cost basis and proportionate share of the underlying equity in net assets of MillerCoors(1) | (663.9 | ) | (666.2 | ) | |||
Accounting policy elections | 35.0 | 35.0 | |||||
Investment in MillerCoors | $ | 2,598.6 | $ | 2,506.5 |
(1) | Our net investment in MillerCoors is based on the carrying values of the net assets contributed to the joint venture which is less than our proportionate share of underlying equity (42%) of MillerCoors (contributed by both Coors Brewing Company ("CBC") and Miller Brewing Company ("Miller")). This basis difference, with the exception of certain non-amortizing items (goodwill, land, etc.), is being amortized as additional equity income over the remaining useful lives of the contributed long-lived amortizing assets. |
Three Months Ended | Six Months Ended | ||||||||||||||
June 30, 2014 | June 30, 2013 | June 30, 2014 | June 30, 2013 | ||||||||||||
(In millions) | |||||||||||||||
Net sales | $ | 2,206.7 | $ | 2,159.0 | $ | 3,997.1 | $ | 3,947.3 | |||||||
Cost of goods sold | (1,282.4 | ) | (1,270.1 | ) | (2,376.5 | ) | (2,358.8 | ) | |||||||
Gross profit | $ | 924.3 | $ | 888.9 | $ | 1,620.6 | $ | 1,588.5 | |||||||
Operating income | $ | 449.8 | $ | 417.9 | $ | 747.3 | $ | 692.4 | |||||||
Net income attributable to MillerCoors | $ | 445.2 | $ | 412.7 | $ | 736.4 | $ | 684.6 |
Three Months Ended | Six Months Ended | ||||||||||||||
June 30, 2014 | June 29, 2013 | June 30, 2014 | June 29, 2013 | ||||||||||||
(In millions, except percentages) | |||||||||||||||
Net income attributable to MillerCoors | $ | 445.2 | $ | 412.7 | $ | 736.4 | $ | 684.6 | |||||||
MCBC economic interest | 42 | % | 42 | % | 42 | % | 42 | % | |||||||
MCBC proportionate share of MillerCoors net income | 187.0 | 173.3 | 309.3 | 287.5 | |||||||||||
Amortization of the difference between MCBC contributed cost basis and proportionate share of the underlying equity in net assets of MillerCoors | 1.2 | 1.0 | 2.3 | 2.2 | |||||||||||
Share-based compensation adjustment(1) | 1.9 | (1.7 | ) | 1.3 | 0.3 | ||||||||||
Equity income in MillerCoors | $ | 190.1 | $ | 172.6 | $ | 312.9 | $ | 290.0 |
(1) | The net adjustment is to eliminate all share-based compensation impacts related to pre-existing SABMiller plc equity awards held by former Miller employees employed by MillerCoors. |
Three Months Ended | Six Months Ended | ||||||||||||||
June 30, 2014 | June 29, 2013 | June 30, 2014 | June 29, 2013 | ||||||||||||
(In millions) | |||||||||||||||
Beer sales to MillerCoors | $ | 3.7 | $ | 4.5 | $ | 6.3 | $ | 8.9 | |||||||
Beer purchases from MillerCoors | $ | 9.1 | $ | 3.9 | $ | 16.2 | $ | 7.0 | |||||||
Service agreement costs and other charges to MillerCoors | $ | 0.7 | $ | 0.7 | $ | 1.1 | $ | 1.3 | |||||||
Service agreement costs and other charges from MillerCoors | $ | 0.3 | $ | — | $ | 0.5 | $ | 0.2 |
As of | |||||||||||||||
June 30, 2014 | December 31, 2013 | ||||||||||||||
Total Assets | Total Liabilities | Total Assets | Total Liabilities | ||||||||||||
(In millions) | |||||||||||||||
Grolsch | $ | 8.5 | $ | 3.1 | $ | 5.6 | $ | 1.7 | |||||||
Cobra U.K. | $ | 29.4 | $ | 0.6 | $ | 36.5 | $ | 1.9 |
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Three Months Ended | Six Months Ended | ||||||||||||||
June 30, 2014 | June 29, 2013 | June 30, 2014 | June 29, 2013 | ||||||||||||
(In millions) | |||||||||||||||
Employee-related charges | |||||||||||||||
Restructuring | |||||||||||||||
Canada | $ | 0.1 | $ | 0.1 | $ | 5.4 | $ | 1.4 | |||||||
Europe | 0.5 | (0.3 | ) | 1.0 | 3.0 | ||||||||||
MCI | — | 0.1 | — | 0.1 | |||||||||||
Corporate | 0.3 | — | 0.3 | 0.3 | |||||||||||
Special termination benefits | |||||||||||||||
Canada | — | 0.6 | — | 1.4 | |||||||||||
Impairments or asset abandonment charges | |||||||||||||||
Canada - Intangible asset write-off(1) | — | — | 4.9 | — | |||||||||||
Unusual or infrequent items | |||||||||||||||
Europe - Release of non-income-related tax reserve(2) | — | — | — | (4.2 | ) | ||||||||||
Europe - Flood loss(3) | 1.8 | — | 1.8 | — | |||||||||||
Termination fees and other (gains)/losses | |||||||||||||||
Canada - Termination fee income(1) | — | — | (63.2 | ) | — | ||||||||||
MCI - Sale of China Joint Venture | — | 0.8 | — | 0.8 | |||||||||||
Special items, net | $ | 2.7 | $ | 1.3 | $ | (49.8 | ) | $ | 2.8 |
(1) | See Note 4, "Investments" for further discussion related to the termination of MMI operations and related intangible asset charge. |
(2) | During 2009, we established a non-income-related tax reserve of $10.4 million that was recorded as a special item. In the first quarter of 2013, the remaining outstanding amount of this non-income-related tax reserve was fully released. |
(3) | During the second quarter of 2014, we incurred costs and recorded losses in our Europe business associated with significant flooding in Serbia, Bosnia, and Croatia. We are currently in the process of evaluating the full impact of these floods which may result in additional special items in future periods. |
Canada | Europe | MCI | Corporate | Total | |||||||||||||||
(In millions) | |||||||||||||||||||
Total at December 31, 2013 | $ | 9.7 | $ | 13.6 | $ | 0.5 | $ | 0.9 | $ | 24.7 | |||||||||
Charges incurred | 5.4 | 1.0 | — | 0.3 | 6.7 | ||||||||||||||
Payments made | (8.1 | ) | (2.7 | ) | (0.3 | ) | (0.5 | ) | (11.6 | ) | |||||||||
Foreign currency and other adjustments | (0.1 | ) | 0.4 | — | — | 0.3 | |||||||||||||
Total at June 30, 2014 | $ | 6.9 | $ | 12.3 | $ | 0.2 | $ | 0.7 | $ | 20.1 |
Canada | Europe | MCI | Corporate | Total | |||||||||||||||
(In millions) | |||||||||||||||||||
Total at December 29, 2012 | $ | 7.1 | $ | 13.4 | $ | 2.8 | $ | 1.5 | $ | 24.8 | |||||||||
Charges incurred | 1.4 | 3.0 | 0.1 | 0.3 | 4.8 | ||||||||||||||
Payments made | (4.8 | ) | (7.4 | ) | (2.1 | ) | (1.4 | ) | (15.7 | ) | |||||||||
Foreign currency and other adjustments | 5.1 | (0.6 | ) | — | — | 4.5 | |||||||||||||
Total at June 29, 2013 | $ | 8.8 | $ | 8.4 | $ | 0.8 | $ | 0.4 | $ | 18.4 |
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Three Months Ended | Six Months Ended | ||||||||||||||
June 30, 2014 | June 29, 2013 | June 30, 2014 | June 29, 2013 | ||||||||||||
(In millions) | |||||||||||||||
Gain on sale of non-operating asset(1) | $ | — | $ | — | $ | — | $ | 1.2 | |||||||
Gain (loss) from other foreign exchange and derivative activity(2) | 0.5 | (8.8 | ) | 1.3 | (6.1 | ) | |||||||||
Other, net | 0.2 | 1.5 | 0.2 | 1.9 | |||||||||||
Other income (expense), net | $ | 0.7 | $ | (7.3 | ) | $ | 1.5 | $ | (3.0 | ) |
(1) | During the first quarter of 2013, we realized a gain for proceeds received related to a non-income-related tax settlement resulting from historical activity within our former investment in the Montréal Canadiens. |
(2) | Included in this amount are gains of $0.5 million for the six months ended June 30, 2014, and unrealized losses of $10.1 million and gains of $10.0 million for the three and six months ended June 29, 2013, respectively, related to foreign currency movements on foreign-denominated financing instruments entered into in conjunction with the closing of the Acquisition. These amounts were partially offset by unrealized gains of $3.9 million and losses of $6.7 million for the three and six months ended June 29, 2013, respectively, related to foreign cash positions and foreign exchange contracts entered into to hedge our risk associated with payments of this foreign-denominated debt. Additionally, we recorded net gains of $0.5 million and $0.8 million related to other foreign exchange and derivative activity during the three and six months ended June 30, 2014, respectively. We recorded net losses related to other foreign exchange and derivative activity of $2.6 million and $9.4 million for the three and six months ended June 29, 2013, respectively. |
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Canada | Europe | MCI | Consolidated | ||||||||||||
(In millions) | |||||||||||||||
Balance at December 31, 2013 | $ | 718.2 | $ | 1,693.2 | $ | 7.3 | $ | 2,418.7 | |||||||
Foreign currency translation | (3.2 | ) | 25.1 | 0.1 | 22.0 | ||||||||||
Balance at June 30, 2014 | $ | 715.0 | $ | 1,718.3 | $ | 7.4 | $ | 2,440.7 |
Useful life | Gross | Accumulated amortization | Net | ||||||||||
(Years) | (In millions) | ||||||||||||
Intangible assets subject to amortization: | |||||||||||||
Brands | 3 - 40 | $ | 540.3 | $ | (239.7 | ) | $ | 300.6 | |||||
Distribution rights | 2 - 23 | 271.8 | (225.9 | ) | 45.9 | ||||||||
Patents and technology and distribution channels | 3 - 10 | 37.4 | (34.4 | ) | 3.0 | ||||||||
Other | 2 | 1.2 | (1.2 | ) | — | ||||||||
Intangible assets not subject to amortization: | |||||||||||||
Brands | Indefinite | 5,462.2 | — | 5,462.2 | |||||||||
Distribution networks | Indefinite | 948.0 | — | 948.0 | |||||||||
Other | Indefinite | 17.5 | — | 17.5 | |||||||||
Total | $ | 7,278.4 | $ | (501.2 | ) | $ | 6,777.2 |
Useful life | Gross | Accumulated amortization | Net | ||||||||||
(Years) | (In millions) | ||||||||||||
Intangible assets subject to amortization: | |||||||||||||
Brands | 3 - 40 | $ | 537.5 | $ | (224.7 | ) | $ | 312.8 | |||||
Distribution rights | 2 - 23 | 314.1 | (255.0 | ) | 59.1 | ||||||||
Patents and technology and distribution channels | 3 - 10 | 36.2 | (32.8 | ) | 3.4 | ||||||||
Other | 2 | 1.2 | (1.2 | ) | — | ||||||||
Intangible assets not subject to amortization: | |||||||||||||
Brands | Indefinite | 5,482.3 | — | 5,482.3 | |||||||||
Distribution networks | Indefinite | 952.3 | — | 952.3 | |||||||||
Other | Indefinite | 15.2 | — | 15.2 | |||||||||
Total | $ | 7,338.8 | $ | (513.7 | ) | $ | 6,825.1 |
Fiscal year | Amount | ||
(In millions) | |||
2014 - remaining | $ | 21.3 | |
2015 | $ | 40.2 | |
2016 | $ | 40.2 | |
2017 | $ | 14.1 | |
2018 | $ | 12.3 |
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As of | |||||||
June 30, 2014 | December 31, 2013 | ||||||
(In millions) | |||||||
Senior notes: | |||||||
€500 million 0.0% convertible note due 2013(1) | $ | — | $ | 61.8 | |||
Canadian Dollar ("CAD") 900 million 5.0% notes due 2015 | 843.4 | 847.2 | |||||
CAD 500 million 3.95% Series A notes due 2017 | 468.6 | 470.7 | |||||
$300 million 2.0% notes due 2017 | 300.0 | 300.0 | |||||
$500 million 3.5% notes due 2022 (2) | 501.2 | 500.0 | |||||
$1.1 billion 5.0% notes due 2042 | 1,100.0 | 1,100.0 | |||||
Other long-term debt | 0.1 | 0.2 | |||||
Long-term credit facilities(3) | — | — | |||||
Less: unamortized debt discounts and other | (4.7 | ) | (5.1 | ) | |||
Total long-term debt (including current portion) | 3,208.6 | 3,274.8 | |||||
Less: current portion of long-term debt | — | (61.8 | ) | ||||
Total long-term debt | $ | 3,208.6 | $ | 3,213.0 | |||
Short-term borrowings(3) | $ | 451.6 | $ | 525.1 | |||
Current portion of long-term debt | — | 61.8 | |||||
Current portion of long-term debt and short-term borrowings | $ | 451.6 | $ | 586.9 |
(1) | On June 15, 2012, we issued a €500 million convertible note due December 31, 2013, which included a put conversion feature to the Seller. On August 13, 2013, the conversion feature was exercised for an agreed-upon value upon exercise of €510.9 million, consisting of €500 million in principal and €10.9 million for the conversion feature. |
(2) | In the second quarter of 2014, we entered into interest rate swaps to economically convert a portion of our fixed rate $500 million 3.5% notes due 2022 ("$500 million notes") to floating rate debt. This resulted in an effective interest rate of 3.31% and 3.40%, for the three and six months ended June 30, 2014, respectively. As a result of this hedge program, the carrying value of the $500 million note includes a $1.2 million adjustment for fair value movements attributable to the benchmark interest rate. See Note 13, "Derivative Instruments and Hedging Activities" for further details. |
(3) | As of June 30, 2014, and December 31, 2013, the outstanding borrowings under the commercial paper program were $301.1 million and $379.8 million, respectively, with a weighted average effective interest rate and tenor for these outstanding borrowings of 0.38%; 29.6 days and 0.49%; 47.2 days, respectively. We have a revolving credit facility in Europe to provide €150 million on an uncommitted basis through September 2014. As of June 30, 2014, there were no outstanding borrowings under this revolving credit facility and as of December 31, 2013, the outstanding borrowings under this revolving credit facility were $137.4 million (€100.0 million). |
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MCBC shareholders | |||||||||||||||||||
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, 2013 | $ | 979.1 | $ | 14.6 | $ | (556.3 | ) | $ | (282.5 | ) | $ | 154.9 | |||||||
Foreign currency translation adjustments | 28.5 | (8.9 | ) | 0.1 | — | 19.7 | |||||||||||||
Unrealized gain (loss) on derivative instruments | — | 6.3 | — | — | 6.3 | ||||||||||||||
Reclassification of derivative (gain) loss to income | — | (8.2 | ) | — | — | (8.2 | ) | ||||||||||||
Amortization of net prior service (benefit) cost and net actuarial (gain) loss to income | — | — | 16.8 | — | 16.8 | ||||||||||||||
Ownership share of unconsolidated subsidiaries' other comprehensive income (loss) | — | — | — | 16.9 | 16.9 | ||||||||||||||
Tax benefit (expense) | (41.6 | ) | 0.2 | (1.4 | ) | (7.7 | ) | (50.5 | ) | ||||||||||
As of June 30, 2014 | $ | 966.0 | $ | 4.0 | $ | (540.8 | ) | $ | (273.3 | ) | $ | 155.9 |
Three Months Ended | Six Months Ended | |||||||||||||||||
June 30, 2014 | June 29, 2013 | June 30, 2014 | June 29, 2013 | |||||||||||||||
Reclassifications from AOCI | Location of gain (loss) recognized in income | |||||||||||||||||
(In millions) | ||||||||||||||||||
Gain/(loss) on cash flow hedges: | ||||||||||||||||||
Forward starting interest rate swaps | $ | (0.4 | ) | $ | (0.4 | ) | $ | (0.8 | ) | $ | (0.8 | ) | Interest expense, net | |||||
Foreign currency forwards | 0.7 | 0.5 | 2.3 | 0.4 | Other income (expense), net | |||||||||||||
Foreign currency forwards | 3.0 | 1.2 | 6.3 | 1.7 | Cost of goods sold | |||||||||||||
Commodity swaps | 0.2 | 0.2 | 0.4 | — | Cost of goods sold | |||||||||||||
Total income (loss) reclassified, before tax | 3.5 | 1.5 | 8.2 | 1.3 | ||||||||||||||
Income tax benefit (expense) | (1.1 | ) | (0.7 | ) | (2.6 | ) | (0.6 | ) | ||||||||||
Net income (loss) reclassified, net of tax | $ | 2.4 | $ | 0.8 | $ | 5.6 | $ | 0.7 | ||||||||||
Amortization of defined benefit pension and other postretirement benefit plan items: | ||||||||||||||||||
Prior service benefit (cost) | $ | 0.5 | $ | 0.7 | $ | 1.1 | $ | 1.4 | (1) | |||||||||
Net actuarial gain (loss) | (9.0 | ) | (14.0 | ) | (17.9 | ) | (28.2 | ) | (1) | |||||||||
Total income (loss) reclassified, before tax | (8.5 | ) | (13.3 | ) | (16.8 | ) | (26.8 | ) | ||||||||||
Income tax benefit (expense) | 0.7 | — | 1.4 | 2.9 | ||||||||||||||
Net income (loss) reclassified, net of tax | $ | (7.8 | ) | $ | (13.3 | ) | $ | (15.4 | ) | $ | (23.9 | ) | ||||||
Total income (loss) reclassified, net of tax | $ | (5.4 | ) | $ | (12.5 | ) | $ | (9.8 | ) | $ | (23.2 | ) |
(1) | These components of AOCI are included in the computation of net periodic pension and other postretirement benefit cost. See Note 14, "Pension and Other Postretirement Benefits" for additional details. |
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Fair value measurements as of June 30, 2014 | |||||||||||||||
Total at June 30, 2014 | Quoted prices in active markets (Level 1) | Significant other observable inputs (Level 2) | Significant unobservable inputs (Level 3) | ||||||||||||
(In millions) | |||||||||||||||
Interest rate swaps | $ | 0.9 | $ | — | $ | 0.9 | $ | — | |||||||
Foreign currency forwards | 10.6 | — | 10.6 | — | |||||||||||
Commodity swaps | (4.1 | ) | — | (4.1 | ) | — | |||||||||
Total | $ | 7.4 | $ | — | $ | 7.4 | $ | — |
Fair value measurements as of December 31, 2013 | |||||||||||||||
Total at December 31, 2013 | Quoted prices in active markets (Level 1) | Significant other observable inputs (Level 2) | Significant unobservable inputs (Level 3) | ||||||||||||
(In millions) | |||||||||||||||
Cross currency swaps | $ | (71.7 | ) | $ | — | $ | (71.7 | ) | $ | — | |||||
Foreign currency forwards | 19.7 | — | 19.7 | — | |||||||||||
Commodity swaps | (4.9 | ) | — | (4.9 | ) | — | |||||||||
Total | $ | (56.9 | ) | $ | — | $ | (56.9 | ) | $ | — |
June 30, 2014 | |||||||||||||||
Asset derivatives | Liability derivatives | ||||||||||||||
Notional amount | Balance sheet location | Fair value | Balance sheet location | Fair value | |||||||||||
Derivatives designated as hedging instruments: | |||||||||||||||
Interest rate swaps | USD | 337.5 | Other non-current assets | $ | 1.2 | Other liabilities | $ | (0.3 | ) | ||||||
Foreign currency forwards | USD | 413.6 | Other current assets | 8.3 | Accounts payable and other current liabilities | (0.1 | ) | ||||||||
Other non-current assets | 3.9 | Other liabilities | (1.5 | ) | |||||||||||
Total derivatives designated as hedging instruments | $ | 13.4 | $ | (1.9 | ) | ||||||||||
Derivatives not designated as hedging instruments: | |||||||||||||||
Commodity swaps - Natural Gas | kWh | 744.3 | Other current assets | $ | 0.5 | Accounts payable and other current liabilities | $ | (0.9 | ) | ||||||
Other non-current assets | 0.1 | Other liabilities | (0.4 | ) | |||||||||||
Commodity swaps - Other | Metric tonnes (actual) | 48,657 | Other current assets | 0.3 | Accounts payable and other current liabilities | (1.7 | ) | ||||||||
Other non-current assets | 0.4 | Other liabilities | (2.4 | ) | |||||||||||
Total derivatives not designated as hedging instruments | $ | 1.3 | $ | (5.4 | ) |
December 31, 2013 | |||||||||||||||
Asset derivatives | Liability derivatives | ||||||||||||||
Notional amount | Balance sheet location | Fair value | Balance sheet location | Fair value | |||||||||||
Derivatives designated as hedging instruments: | |||||||||||||||
Cross currency swaps | CAD | 240.7 | Other current assets | $ | — | Accounts payable and other current liabilities | $ | (71.7 | ) | ||||||
Foreign currency forwards | USD | 476.1 | Other current assets | 11.5 | Accounts payable and other current liabilities | — | |||||||||
Other non-current assets | 8.2 | Other liabilities | — | ||||||||||||
Commodity swaps | kWh | 848.8 | Other current assets | 0.2 | Accounts payable and other current liabilities | (0.2 | ) | ||||||||
Other non-current assets | 0.1 | Other liabilities | (0.3 | ) | |||||||||||
Total derivatives designated as hedging instruments | $ | 20.0 | $ | (72.2 | ) | ||||||||||
Derivatives not designated as hedging instruments: | |||||||||||||||
Commodity swaps | Metric tonnes (actual) | 55,653 | Other current assets | $ | — | Accounts payable and other current liabilities | $ | (2.0 | ) | ||||||
Other non-current assets | — | Other liabilities | (2.7 | ) | |||||||||||
Total derivatives not designated as hedging instruments | $ | — | $ | (4.7 | ) |
For the Three Months Ended June 30, 2014 | ||||||||||||||||
Derivatives in cash flow hedge relationships | Amount of gain (loss) recognized in OCI on derivative (effective portion) | Location of gain (loss) reclassified from AOCI into income (effective portion) | Amount of gain (loss) recognized from AOCI on derivative (effective portion) | Location of gain (loss) recognized in income on derivative (ineffective portion and amount excluded from effectiveness testing) | Amount of gain (loss) recognized in income on derivative (ineffective portion and amount excluded from effectiveness testing) | |||||||||||
Forward starting interest rate swaps | $ | (0.3 | ) | Interest expense, net | $ | (0.4 | ) | Interest expense, net | $ | — | ||||||
Foreign currency forwards | (15.1 | ) | Other income (expense), net | 0.7 | Other income (expense), net | — | ||||||||||
Cost of goods sold | 3.0 | Cost of goods sold | — | |||||||||||||
Commodity swaps | 0.2 | Cost of goods sold | 0.2 | Cost of goods sold | — | |||||||||||
Total | $ | (15.2 | ) | $ | 3.5 | $ | — |
For the Three Months Ended June 30, 2014 | ||||||
Derivatives in fair value hedge relationships | Amount of gain (loss) recognized in income on derivative | Location of gain (loss) recognized in income | ||||
Interest rate swaps | $ | 1.2 | Interest expense, net | |||
Total | $ | 1.2 |
For the Three Months Ended June 29, 2013 | ||||||||||||||||
Derivatives in cash flow hedge relationships | Amount of gain (loss) recognized in OCI on derivative (effective portion) | Location of gain (loss) reclassified from AOCI into income (effective portion) | Amount of gain (loss) recognized from AOCI on derivative (effective portion) | Location of gain (loss) recognized in income on derivative (ineffective portion and amount excluded from effectiveness testing) | Amount of gain (loss) recognized in income on derivative (ineffective portion and amount excluded from effectiveness testing) | |||||||||||
Forward starting interest rate swaps | $ | — | Interest expense, net | $ | (0.4 | ) | Interest expense, net | $ | — | |||||||
Foreign currency forwards | 14.8 | Other income (expense), net | 0.5 | Other income (expense), net | — | |||||||||||
Cost of goods sold | 1.2 | Cost of goods sold | — | |||||||||||||
Commodity swaps | (0.6 | ) | Cost of goods sold | 0.2 | Cost of goods sold | — | ||||||||||
Total | $ | 14.2 | $ | 1.5 | $ | — |
For the Three Months Ended June 29, 2013 | ||||||||||||||||
Derivatives and non-derivative financial instruments in net investment hedge relationships | Amount of gain (loss) recognized in OCI (effective portion) | Location of gain (loss) reclassified from AOCI into income (effective portion) | Amount of gain (loss) recognized from AOCI (effective portion) | Location of gain (loss) recognized in income (ineffective portion and amount excluded from effectiveness testing) | Amount of gain (loss) recognized in income (ineffective portion and amount excluded from effectiveness testing) | |||||||||||
Cross currency swaps | $ | 15.3 | Other income (expense), net | $ | — | Other income (expense), net | $ | — | ||||||||
€120 million term loan due 2016 | (1.7 | ) | Other income (expense), net | — | Other income (expense), net | — | ||||||||||
Total | $ | 13.6 | $ | — | $ | — |
For the Six Months Ended June 30, 2014 | ||||||||||||||||
Derivatives in cash flow hedge relationships | Amount of gain (loss) recognized in OCI on derivative (effective portion) | Location of gain (loss) reclassified from AOCI into income (effective portion) | Amount of gain (loss) recognized from AOCI on derivative (effective portion) | Location of gain (loss) recognized in income on derivative (ineffective portion and amount excluded from effectiveness testing) | Amount of gain (loss) recognized in income on derivative (ineffective portion and amount excluded from effectiveness testing) | |||||||||||
Forward starting interest rate swaps | $ | (0.3 | ) | Interest expense, net | $ | (0.8 | ) | Interest expense, net | $ | — | ||||||
Foreign currency forwards | (0.4 | ) | Other income (expense), net | 2.3 | Other income (expense), net | — | ||||||||||
Cost of goods sold | 6.3 | Cost of goods sold | — | |||||||||||||
Commodity swaps | 0.5 | Cost of goods sold | 0.4 | Cost of goods sold | — | |||||||||||
Total | $ | (0.2 | ) | $ | 8.2 | $ | — |
For the Six Months Ended June 30, 2014 | ||||||||||||||||
Derivatives and non-derivative financial instruments in net investment hedge relationships | Amount of gain (loss) recognized in OCI (effective portion) | Location of gain (loss) reclassified from AOCI into income (effective portion) | Amount of gain (loss) recognized from AOCI (effective portion) | Location of gain (loss) recognized in income (ineffective portion and amount excluded from effectiveness testing) | Amount of gain (loss) recognized in income (ineffective portion and amount excluded from effectiveness testing) | |||||||||||
Cross currency swaps | $ | 6.5 | Other income (expense), net | $ | — | Other income (expense), net | $ | — | ||||||||
Total | $ | 6.5 | $ | — | $ | — |
For the Six Months Ended June 30, 2014 | ||||||
Derivatives in fair value hedge relationships | Amount of gain (loss) recognized in income on derivative | Location of gain (loss) recognized in income | ||||
Interest rate swaps | $ | 1.2 | Interest expense, net | |||
Total | $ | 1.2 |
For the Six Months Ended June 29, 2013 | ||||||||||||||||
Derivatives in cash flow hedge relationships | Amount of gain (loss) recognized in OCI on derivative (effective portion) | Location of gain (loss) reclassified from AOCI into income (effective portion) | Amount of gain (loss) recognized from AOCI on derivative (effective portion) | Location of gain (loss) recognized in income on derivative (ineffective portion and amount excluded from effectiveness testing) | Amount of gain (loss) recognized in income on derivative (ineffective portion and amount excluded from effectiveness testing) | |||||||||||
Forward starting interest rate swaps | $ | — | Interest expense, net | $ | (0.8 | ) | Interest expense, net | $ | — | |||||||
Foreign currency forwards | 23.7 | Other income (expense), net | 0.4 | Other income (expense), net | — | |||||||||||
Cost of goods sold | 1.7 | Cost of goods sold | — | |||||||||||||
Commodity swaps | — | Cost of goods sold | — | Cost of goods sold | — | |||||||||||
Total | $ | 23.7 | $ | 1.3 | $ | — |
For the Six Months Ended June 29, 2013 | ||||||||||||||||
Derivatives and non-derivative financial instruments in net investment hedge relationships | Amount of gain (loss) recognized in OCI (effective portion) | Location of gain (loss) reclassified from AOCI into income (effective portion) | Amount of gain (loss) recognized from AOCI (effective portion) | Location of gain (loss) recognized in income (ineffective portion and amount excluded from effectiveness testing) | Amount of gain (loss) recognized in income (ineffective portion and amount excluded from effectiveness testing) | |||||||||||
Cross currency swaps | $ | 29.5 | Other income (expense), net | $ | — | Other income (expense), net | $ | — | ||||||||
€120 million term loan due 2016 | 2.0 | Other income (expense), net | — | Other income (expense), net | — | |||||||||||
Total | $ | 31.5 | $ | — | $ | — |
For the Three Months Ended June 30, 2014 | ||||||
Derivatives not in hedging relationships | Location of gain (loss) recognized in income on derivative | Amount of gain (loss) recognized in income on derivative | ||||
Commodity swaps | Cost of goods sold | $ | 0.7 | |||
Total | $ | 0.7 |
For the Three Months Ended June 29, 2013 | ||||||
Derivatives not in hedging relationships | Location of gain (loss) recognized in income on derivative | Amount of gain (loss) recognized in income on derivative | ||||
Equity conversion feature of debt | Interest expense, net | $ | 3.2 | |||
Other income (expense), net | (0.5 | ) | ||||
Commodity Swaps | Cost of goods sold | (1.5 | ) | |||
Foreign currency forwards | Other income (expense), net | 3.9 | ||||
Total | $ | 5.1 |
For the Six Months Ended June 30, 2014 | ||||||
Derivatives not in hedging relationships | Location of gain (loss) recognized in income on derivative | Amount of gain (loss) recognized in income on derivative | ||||
Commodity swaps | Cost of goods sold | $ | (0.6 | ) | ||
Total | $ | (0.6 | ) |
For the Six Months Ended June 29, 2013 | ||||||
Derivatives not in hedging relationships | Location of gain (loss) recognized in income on derivative | Amount of gain (loss) recognized in income on derivative | ||||
Equity conversion feature of debt | Interest expense, net | $ | (26.5 | ) | ||
Other income (expense), net | (0.3 | ) | ||||
Commodity Swaps | Cost of goods sold | (1.5 | ) | |||
Foreign currency forwards | Other income (expense), net | (6.7 | ) | |||
Total | $ | (35.0 | ) |
|
For the Three Months Ended | |||||||||||||||||||||||
June 30, 2014 | June 29, 2013 | ||||||||||||||||||||||
Pension | OPEB | Consolidated | Pension | OPEB | Consolidated | ||||||||||||||||||
(In millions) | |||||||||||||||||||||||
Net periodic pension and OPEB cost: | |||||||||||||||||||||||
Service cost - benefits earned during the year | $ | 3.3 | $ | 0.8 | $ | 4.1 | $ | 4.0 | $ | 0.9 | $ | 4.9 | |||||||||||
Interest cost on projected benefit obligation | 42.6 | 1.9 | 44.5 | 38.8 | 1.8 | 40.6 | |||||||||||||||||
Expected return on plan assets | (49.8 | ) | — | (49.8 | ) | (44.0 | ) | — | (44.0 | ) | |||||||||||||
Amortization of prior service cost (benefit) | 0.2 | (0.7 | ) | (0.5 | ) | 0.2 | (0.9 | ) | (0.7 | ) | |||||||||||||
Amortization of net actuarial loss (gain) | 9.3 | (0.3 | ) | 9.0 | 14.1 | (0.1 | ) | 14.0 | |||||||||||||||
Less: expected participant contributions | (0.3 | ) | — | (0.3 | ) | (0.3 | ) | — | (0.3 | ) | |||||||||||||
Net periodic pension and OPEB cost | $ | 5.3 | $ | 1.7 | $ | 7.0 | $ | 12.8 | $ | 1.7 | $ | 14.5 |
For the Six Months Ended | |||||||||||||||||||||||
June 30, 2014 | June 29, 2013 | ||||||||||||||||||||||
Pension | OPEB | Consolidated | Pension | OPEB | Consolidated | ||||||||||||||||||
(In millions) | |||||||||||||||||||||||
Net periodic pension and OPEB cost: | |||||||||||||||||||||||
Service cost - benefits earned during the year | 6.6 | 1.5 | 8.1 | $ | 8.0 | $ | 1.8 | $ | 9.8 | ||||||||||||||
Interest cost on projected benefit obligation | 84.7 | 3.6 | 88.3 | 78.2 | 3.6 | 81.8 | |||||||||||||||||
Expected return on plan assets | (98.9 | ) | — | (98.9 | ) | (88.7 | ) | — | (88.7 | ) | |||||||||||||
Amortization of prior service cost (benefit) | 0.4 | (1.5 | ) | (1.1 | ) | 0.4 | (1.8 | ) | (1.4 | ) | |||||||||||||
Amortization of net actuarial loss (gain) | 18.4 | (0.5 | ) | 17.9 | 28.4 | (0.2 | ) | 28.2 | |||||||||||||||
Less: expected participant contributions | (0.6 | ) | — | (0.6 | ) | (0.6 | ) | — | (0.6 | ) | |||||||||||||
Net periodic pension and OPEB cost | $ | 10.6 | $ | 3.1 | $ | 13.7 | $ | 25.7 | $ | 3.4 | $ | 29.1 |
|
• | trust management costs are included in projections with regard to the $120 million threshold, but are expensed only as incurred; |
• | income taxes, which we believe are not an included cost, are excluded from projections with regard to the $120 million threshold; |
• | a 2.5% inflation rate for future costs; and |
• | certain operations and maintenance costs were discounted using a 2.94% risk-free rate of return. |
|
Parent Guarantor and 2012 Issuer | Subsidiary Guarantors | Subsidiary Non Guarantors | Eliminations | Consolidated | |||||||||||||||
Net cash provided by (used in) operating activities | $ | 178.0 | $ | 292.2 | $ | 109.9 | $ | (4.1 | ) | $ | 576.0 | ||||||||
CASH FLOWS FROM INVESTING ACTIVITIES: | |||||||||||||||||||
Additions to properties | (5.5 | ) | (79.2 | ) | (41.7 | ) | — | (126.4 | ) | ||||||||||
Proceeds from sales of properties and other assets | — | 2.8 | 1.3 | — | 4.1 | ||||||||||||||
Investment in MillerCoors | — | (764.4 | ) | — | — | (764.4 | ) | ||||||||||||
Return of capital from MillerCoors | — | 691.9 | — | — | 691.9 | ||||||||||||||
Loan repayments | — | 4.0 | — | — | 4.0 | ||||||||||||||
Loan advances | — | (3.3 | ) | — | — | (3.3 | ) | ||||||||||||
Net intercompany investing activity | (15.1 | ) | 137.6 | 157.5 | (280.0 | ) | — | ||||||||||||
Net cash provided by (used in) investing activities | (20.6 | ) | (10.6 | ) | 117.1 | (280.0 | ) | (194.1 | ) | ||||||||||
CASH FLOWS FROM FINANCING ACTIVITIES: | |||||||||||||||||||
Exercise of stock options under equity compensation plans | 27.7 | — | — | — | 27.7 | ||||||||||||||
Excess tax benefits from share-based compensation | 3.2 | — | — | — | 3.2 | ||||||||||||||
Dividends paid | (120.6 | ) | — | (20.2 | ) | 4.1 | (136.7 | ) | |||||||||||
Dividends paid to noncontrolling interest holders | — | — | (2.4 | ) | — | (2.4 | ) | ||||||||||||
Payments for purchase of noncontrolling interest | — | — | (0.4 | ) | (0.4 | ) | |||||||||||||
Debt issuance costs | (1.8 | ) | — | — | — | (1.8 | ) | ||||||||||||
Payments on long-term debt and capital lease obligations | (0.4 | ) | (61.7 | ) | (0.1 | ) | — | (62.2 | ) | ||||||||||
Proceeds from short-term borrowings | — | — | 20.9 | — | 20.9 | ||||||||||||||
Payments on short-term borrowings | — | — | (23.3 | ) | — | (23.3 | ) | ||||||||||||
Payments on settlement of derivative instruments | — | (65.2 | ) | — | — | (65.2 | ) | ||||||||||||
Net proceeds from (payments on) revolving credit facilities and commercial paper | (78.7 | ) | — | (135.6 | ) | — | (214.3 | ) | |||||||||||
Change in overdraft balances and other | — | 0.6 | 130.8 | — | 131.4 | ||||||||||||||
Net intercompany financing activity | — | (142.4 | ) | (137.6 | ) | 280.0 | — | ||||||||||||
Net cash provided by (used in) financing activities | (170.6 | ) | (268.7 | ) | (167.9 | ) | 284.1 | (323.1 | ) | ||||||||||
CASH AND CASH EQUIVALENTS: | |||||||||||||||||||
Net increase (decrease) in cash and cash equivalents | (13.2 | ) | 12.9 | 59.1 | — | 58.8 | |||||||||||||
Effect of foreign exchange rate changes on cash and cash equivalents | — | 2.0 | 2.9 | — | 4.9 | ||||||||||||||
Balance at beginning of year | 90.6 | 248.7 | 103.0 | — | 442.3 | ||||||||||||||
Balance at end of period | $ | 77.4 | $ | 263.6 | $ | 165.0 | $ | — | $ | 506.0 |
Parent Guarantor and 2012 Issuer | Subsidiary Guarantors | Subsidiary Non Guarantors | Eliminations | Consolidated | |||||||||||||||
Net cash provided by (used in) operating activities | $ | 174.6 | $ | 301.1 | $ | 187.5 | $ | (72.2 | ) | $ | 591.0 | ||||||||
CASH FLOWS FROM INVESTING ACTIVITIES: | |||||||||||||||||||
Additions to properties | (4.6 | ) | (64.7 | ) | (80.4 | ) | — | (149.7 | ) | ||||||||||
Proceeds from sales of properties and other assets | — | 1.5 | 3.4 | — | 4.9 | ||||||||||||||
Proceeds from sale of business | — | — | 2.0 | — | 2.0 | ||||||||||||||
Investment in MillerCoors | — | (615.3 | ) | — | — | (615.3 | ) | ||||||||||||
Return of capital from MillerCoors | — | 515.2 | — | — | 515.2 | ||||||||||||||
Investment in and advances to an unconsolidated affiliate | — | — | (2.8 | ) | — | (2.8 | ) | ||||||||||||
Loan repayments | — | 4.7 | (0.2 | ) | — | 4.5 | |||||||||||||
Loan advances | — | (3.7 | ) | — | — | (3.7 | ) | ||||||||||||
Net intercompany investing activity | — | (12.2 | ) | — | 12.2 | — | |||||||||||||
Net cash provided by (used in) investing activities | (4.6 | ) | (174.5 | ) | (78.0 | ) | 12.2 | (244.9 | ) | ||||||||||
CASH FLOWS FROM FINANCING ACTIVITIES: | |||||||||||||||||||
Exercise of stock options under equity compensation plans | 63.1 | — | — | — | 63.1 | ||||||||||||||
Excess tax benefits from share-based compensation | 5.4 | — | — | — | 5.4 | ||||||||||||||
Dividends paid | (102.8 | ) | — | (86.2 | ) | 72.2 | (116.8 | ) | |||||||||||
Dividends paid to noncontrolling interest holders | — | — | (1.2 | ) | — | (1.2 | ) | ||||||||||||
Payments for purchase of noncontrolling interest | — | — | (0.2 | ) | — | (0.2 | ) | ||||||||||||
Debt issuance costs | (0.2 | ) | — | — | — | (0.2 | ) | ||||||||||||
Payments on long-term debt and capital lease obligations | — | (0.4 | ) | (52.0 | ) | — | (52.4 | ) | |||||||||||
Proceeds from short-term borrowings | — | — | 9.3 | — | 9.3 | ||||||||||||||
Payments on short-term borrowings | — | — | (15.1 | ) | — | (15.1 | ) | ||||||||||||
Payments on settlement of derivative instruments | — | (35.1 | ) | — | — | (35.1 | ) | ||||||||||||
Net proceeds from (payments on) revolving credit facilities and commercial paper | — | — | (2.9 | ) | — | (2.9 | ) | ||||||||||||
Change in overdraft balances and other | — | — | 2.0 | — | 2.0 | ||||||||||||||
Net intercompany financing activity | — | 12.2 | (12.2 | ) | — | ||||||||||||||
Net cash provided by (used in) financing activities | (34.5 | ) | (35.5 | ) | (134.1 | ) | 60.0 | (144.1 | ) | ||||||||||
CASH AND CASH EQUIVALENTS: | |||||||||||||||||||
Net increase (decrease) in cash and cash equivalents | 135.5 | 91.1 | (24.6 | ) | — | 202.0 | |||||||||||||
Effect of foreign exchange rate changes on cash and cash equivalents | — | (23.0 | ) | (1.4 | ) | — | (24.4 | ) | |||||||||||
Balance at beginning of year | 189.8 | 249.3 | 184.9 | — | 624.0 | ||||||||||||||
Balance at end of period | $ | 325.3 | $ | 317.4 | $ | 158.9 | $ | — | $ | 801.6 |
|
Three Months Ended March 30, 2013 | Three Months Ended June 29, 2013 | Three Months Ended September 28, 2013 | Three Months Ended December 31, 2013 | ||||||||||||||||||||||||||||
As Reported | As Adjusted | As Reported | As Adjusted | As Reported | As Adjusted | As Reported | As Adjusted | ||||||||||||||||||||||||
(In millions) | |||||||||||||||||||||||||||||||
Marketing, general and administrative expenses | $ | (285.3 | ) | $ | (293.9 | ) | $ | (304.3 | ) | $ | (319.5 | ) | $ | (307.8 | ) | $ | (290.8 | ) | $ | (296.4 | ) | $ | (289.6 | ) | |||||||
Income (loss) from continuing operations before income taxes | $ | 41.4 | $ | 32.8 | $ | 312.4 | $ | 297.2 | $ | 155.4 | $ | 172.4 | $ | 145.3 | $ | 152.1 | |||||||||||||||
Income tax benefit (expense) | $ | (3.5 | ) | $ | (2.0 | ) | $ | (34.1 | ) | $ | (30.0 | ) | $ | (32.7 | ) | $ | (37.2 | ) | $ | (13.7 | ) | $ | (14.8 | ) | |||||||
Net income (loss) attributable to Molson Coors Brewing Company | $ | 35.6 | $ | 28.5 | $ | 278.4 | $ | 267.3 | $ | 121.8 | $ | 134.3 | $ | 131.5 | $ | 137.2 | |||||||||||||||
Diluted net income (loss) attributable to Molson Coors Brewing Company per share | $ | 0.20 | $ | 0.16 | $ | 1.51 | $ | 1.45 | $ | 0.66 | $ | 0.73 | $ | 0.71 | $ | 0.74 |
Three Months Ended March 30, 2013 | Three Months Ended June 29, 2013 | Three Months Ended September 28, 2013 | Three Months Ended December 31, 2013 | ||||||||||||||||||||||||||||
As Reported | As Adjusted | As Reported | As Adjusted | As Reported | As Adjusted | As Reported | As Adjusted | ||||||||||||||||||||||||
(In millions) | |||||||||||||||||||||||||||||||
Canada | $ | 36.4 | $ | 28.4 | $ | 137.3 | $ | 128.6 | $ | 128.7 | $ | 143.6 | $ | 60.9 | $ | 62.7 | |||||||||||||||
U.S. | $ | 117.4 | $ | 117.4 | $ | 172.6 | $ | 172.6 | $ | 148.3 | $ | 148.3 | $ | 100.7 | $ | 100.7 | |||||||||||||||
Europe | $ | (3.7 | ) | $ | (5.2 | ) | $ | 81.6 | $ | 75.8 | $ | (69.5 | ) | $ | (67.4 | ) | $ | 25.9 | $ | 31.1 | |||||||||||
MCI | $ | (6.1 | ) | $ | (5.2 | ) | $ | (3.3 | ) | $ | (4.0 | ) | $ | (2.4 | ) | $ | (2.4 | ) | $ | — | $ | (0.2 | ) | ||||||||
Corporate | $ | (102.6 | ) | $ | (102.6 | ) | $ | (75.8 | ) | $ | (75.8 | ) | $ | (49.7 | ) | $ | (49.7 | ) | $ | (42.2 | ) | $ | (42.2 | ) |
Three Months Ended June 29, 2013 | Six Months Ended June 29, 2013 | ||||||||||||||
As Reported | As Adjusted | As Reported | As Adjusted | ||||||||||||
(In millions) | |||||||||||||||
Foreign currency translation adjustments, net of tax | $ | (79.4 | ) | $ | (113.6 | ) | $ | (340.7 | ) | $ | (394.3 | ) | |||
Total other comprehensive income (loss), net of tax | $ | (52.5 | ) | $ | (86.7 | ) | $ | (294.3 | ) | $ | (347.9 | ) | |||
Comprehensive income (loss) attributable to Molson Coors Brewing Company | $ | 225.9 | $ | 180.6 | $ | 19.7 | $ | (52.1 | ) |
|
Three Months Ended | Six Months Ended | ||||||||||||||
June 30, 2014 | June 29, 2013 | June 30, 2014 | June 29, 2013 | ||||||||||||
(In millions) | |||||||||||||||
Canada | $ | 516.5 | $ | 558.2 | $ | 863.6 | $ | 953.8 | |||||||
Europe | 629.4 | 586.2 | 1,067.0 | 992.6 | |||||||||||
MCI | 43.7 | 34.7 | 75.9 | 61.7 | |||||||||||
Corporate | 0.4 | 0.3 | 0.7 | 0.6 | |||||||||||
Eliminations(1) | (1.5 | ) | (1.4 | ) | (2.7 | ) | (2.2 | ) | |||||||
Consolidated | $ | 1,188.5 | $ | 1,178.0 | $ | 2,004.5 | $ | 2,006.5 |
(1) | Represents inter-segment sales from the Europe segment to the MCI segment. |
Three Months Ended | Six Months Ended | ||||||||||||||
June 30, 2014 | June 29, 2013(1) | June 30, 2014 | June 29, 2013(1) | ||||||||||||
(In millions) | |||||||||||||||
Canada | $ | 120.8 | $ | 128.6 | $ | 209.1 | $ | 157.0 | |||||||
U.S. | 190.1 | 172.6 | 312.9 | 290.0 | |||||||||||
Europe | 84.5 | 75.8 | 111.5 | 70.6 | |||||||||||
MCI | (3.7 | ) | (4.0 | ) | (6.7 | ) | (9.2 | ) | |||||||
Corporate | (62.4 | ) | (75.8 | ) | (127.9 | ) | (178.4 | ) | |||||||
Consolidated | $ | 329.3 | $ | 297.2 | $ | 498.9 | $ | 330.0 |
(1) | Amounts have been adjusted to reflect the change in interim accounting for advertising expenses. See Note 1, "Basis of Presentation and Summary of Significant Accounting Policies" for further discussion. |
As of | |||||||
June 30, 2014 | December 31, 2013 | ||||||
(In millions) | |||||||
Canada | $ | 6,068.3 | $ | 6,103.2 | |||
U.S. | 2,598.6 | 2,506.5 | |||||
Europe | 6,863.9 | 6,547.7 | |||||
MCI | 86.0 | 83.3 | |||||
Corporate | 256.2 | 339.4 | |||||
Consolidated | $ | 15,873.0 | $ | 15,580.1 |
|
As of | |||||||
June 30, 2014 | December 31, 2013 | ||||||
(In millions) | |||||||
Current assets | $ | 1,007.5 | $ | 798.4 | |||
Non-current assets | 8,945.9 | 8,989.3 | |||||
Total assets | $ | 9,953.4 | $ | 9,787.7 | |||
Current liabilities | $ | 998.3 | $ | 950.1 | |||
Non-current liabilities | 1,247.2 | 1,346.2 | |||||
Total liabilities | 2,245.5 | 2,296.3 | |||||
Noncontrolling interests | 23.4 | 20.7 | |||||
Owners' equity | 7,684.5 | 7,470.7 | |||||
Total liabilities and equity | $ | 9,953.4 | $ | 9,787.7 |
As of | |||||||
June 30, 2014 | December 31, 2013 | ||||||
(In millions, except percentages) | |||||||
MillerCoors owners' equity | $ | 7,684.5 | $ | 7,470.7 | |||
MCBC economic interest | 42 | % | 42 | % | |||
MCBC proportionate share in MillerCoors' equity | 3,227.5 | 3,137.7 | |||||
Difference between MCBC contributed cost basis and proportionate share of the underlying equity in net assets of MillerCoors(1) | (663.9 | ) | (666.2 | ) | |||
Accounting policy elections | 35.0 | 35.0 | |||||
Investment in MillerCoors | $ | 2,598.6 | $ | 2,506.5 |
(1) | Our net investment in MillerCoors is based on the carrying values of the net assets contributed to the joint venture which is less than our proportionate share of underlying equity (42%) of MillerCoors (contributed by both Coors Brewing Company ("CBC") and Miller Brewing Company ("Miller")). This basis difference, with the exception of certain non-amortizing items (goodwill, land, etc.), is being amortized as additional equity income over the remaining useful lives of the contributed long-lived amortizing assets. |
Three Months Ended | Six Months Ended | ||||||||||||||
June 30, 2014 | June 30, 2013 | June 30, 2014 | June 30, 2013 | ||||||||||||
(In millions) | |||||||||||||||
Net sales | $ | 2,206.7 | $ | 2,159.0 | $ | 3,997.1 | $ | 3,947.3 | |||||||
Cost of goods sold | (1,282.4 | ) | (1,270.1 | ) | (2,376.5 | ) | (2,358.8 | ) | |||||||
Gross profit | $ | 924.3 | $ | 888.9 | $ | 1,620.6 | $ | 1,588.5 | |||||||
Operating income | $ | 449.8 | $ | 417.9 | $ | 747.3 | $ | 692.4 | |||||||
Net income attributable to MillerCoors | $ | 445.2 | $ | 412.7 | $ | 736.4 | $ | 684.6 |
Three Months Ended | Six Months Ended | ||||||||||||||
June 30, 2014 | June 29, 2013 | June 30, 2014 | June 29, 2013 | ||||||||||||
(In millions, except percentages) | |||||||||||||||
Net income attributable to MillerCoors | $ | 445.2 | $ | 412.7 | $ | 736.4 | $ | 684.6 | |||||||
MCBC economic interest | 42 | % | 42 | % | 42 | % | 42 | % | |||||||
MCBC proportionate share of MillerCoors net income | 187.0 | 173.3 | 309.3 | 287.5 | |||||||||||
Amortization of the difference between MCBC contributed cost basis and proportionate share of the underlying equity in net assets of MillerCoors | 1.2 | 1.0 | 2.3 | 2.2 | |||||||||||
Share-based compensation adjustment(1) | 1.9 | (1.7 | ) | 1.3 | 0.3 | ||||||||||
Equity income in MillerCoors | $ | 190.1 | $ | 172.6 | $ | 312.9 | $ | 290.0 |
(1) | The net adjustment is to eliminate all share-based compensation impacts related to pre-existing SABMiller plc equity awards held by former Miller employees employed by MillerCoors. |
Three Months Ended | Six Months Ended | ||||||||||||||
June 30, 2014 | June 29, 2013 | June 30, 2014 | June 29, 2013 | ||||||||||||
(In millions) | |||||||||||||||
Beer sales to MillerCoors | $ | 3.7 | $ | 4.5 | $ | 6.3 | $ | 8.9 | |||||||
Beer purchases from MillerCoors | $ | 9.1 | $ | 3.9 | $ | 16.2 | $ | 7.0 | |||||||
Service agreement costs and other charges to MillerCoors | $ | 0.7 | $ | 0.7 | $ | 1.1 | $ | 1.3 | |||||||
Service agreement costs and other charges from MillerCoors | $ | 0.3 | $ | — | $ | 0.5 | $ | 0.2 |
As of | |||||||||||||||
June 30, 2014 | December 31, 2013 | ||||||||||||||
Total Assets | Total Liabilities | Total Assets | Total Liabilities | ||||||||||||
(In millions) | |||||||||||||||
Grolsch | $ | 8.5 | $ | 3.1 | $ | 5.6 | $ | 1.7 | |||||||
Cobra U.K. | $ | 29.4 | $ | 0.6 | $ | 36.5 | $ | 1.9 |
|
Three Months Ended | Six Months Ended | ||||||||||||||
June 30, 2014 | June 29, 2013 | June 30, 2014 | June 29, 2013 | ||||||||||||
(In millions) | |||||||||||||||
Employee-related charges | |||||||||||||||
Restructuring | |||||||||||||||
Canada | $ | 0.1 | $ | 0.1 | $ | 5.4 | $ | 1.4 | |||||||
Europe | 0.5 | (0.3 | ) | 1.0 | 3.0 | ||||||||||
MCI | — | 0.1 | — | 0.1 | |||||||||||
Corporate | 0.3 | — | 0.3 | 0.3 | |||||||||||
Special termination benefits | |||||||||||||||
Canada | — | 0.6 | — | 1.4 | |||||||||||
Impairments or asset abandonment charges | |||||||||||||||
Canada - Intangible asset write-off(1) | — | — | 4.9 | — | |||||||||||
Unusual or infrequent items | |||||||||||||||
Europe - Release of non-income-related tax reserve(2) | — | — | — | (4.2 | ) | ||||||||||
Europe - Flood loss(3) | 1.8 | — | 1.8 | — | |||||||||||
Termination fees and other (gains)/losses | |||||||||||||||
Canada - Termination fee income(1) | — | — | (63.2 | ) | — | ||||||||||
MCI - Sale of China Joint Venture | — | 0.8 | — | 0.8 | |||||||||||
Special items, net | $ | 2.7 | $ | 1.3 | $ | (49.8 | ) | $ | 2.8 |
(1) | See Note 4, "Investments" for further discussion related to the termination of MMI operations and related intangible asset charge. |
(2) | During 2009, we established a non-income-related tax reserve of $10.4 million that was recorded as a special item. In the first quarter of 2013, the remaining outstanding amount of this non-income-related tax reserve was fully released. |
(3) | During the second quarter of 2014, we incurred costs and recorded losses in our Europe business associated with significant flooding in Serbia, Bosnia, and Croatia. We are currently in the process of evaluating the full impact of these floods which may result in additional special items in future periods. |
Canada | Europe | MCI | Corporate | Total | |||||||||||||||
(In millions) | |||||||||||||||||||
Total at December 31, 2013 | $ | 9.7 | $ | 13.6 | $ | 0.5 | $ | 0.9 | $ | 24.7 | |||||||||
Charges incurred | 5.4 | 1.0 | — | 0.3 | 6.7 | ||||||||||||||
Payments made | (8.1 | ) | (2.7 | ) | (0.3 | ) | (0.5 | ) | (11.6 | ) | |||||||||
Foreign currency and other adjustments | (0.1 | ) | 0.4 | — | — | 0.3 | |||||||||||||
Total at June 30, 2014 | $ | 6.9 | $ | 12.3 | $ | 0.2 | $ | 0.7 | $ | 20.1 |
Canada | Europe | MCI | Corporate | Total | |||||||||||||||
(In millions) | |||||||||||||||||||
Total at December 29, 2012 | $ | 7.1 | $ | 13.4 | $ | 2.8 | $ | 1.5 | $ | 24.8 | |||||||||
Charges incurred | 1.4 | 3.0 | 0.1 | 0.3 | 4.8 | ||||||||||||||
Payments made | (4.8 | ) | (7.4 | ) | (2.1 | ) | (1.4 | ) | (15.7 | ) | |||||||||
Foreign currency and other adjustments | 5.1 | (0.6 | ) | — | — | 4.5 | |||||||||||||
Total at June 29, 2013 | $ | 8.8 | $ | 8.4 | $ | 0.8 | $ | 0.4 | $ | 18.4 |
|
Three Months Ended | Six Months Ended | ||||||||||||||
June 30, 2014 | June 29, 2013 | June 30, 2014 | June 29, 2013 | ||||||||||||
(In millions) | |||||||||||||||
Gain on sale of non-operating asset(1) | $ | — | $ | — | $ | — | $ | 1.2 | |||||||
Gain (loss) from other foreign exchange and derivative activity(2) | 0.5 | (8.8 | ) | 1.3 | (6.1 | ) | |||||||||
Other, net | 0.2 | 1.5 | 0.2 | 1.9 | |||||||||||
Other income (expense), net | $ | 0.7 | $ | (7.3 | ) | $ | 1.5 | $ | (3.0 | ) |
(1) | During the first quarter of 2013, we realized a gain for proceeds received related to a non-income-related tax settlement resulting from historical activity within our former investment in the Montréal Canadiens. |
(2) | Included in this amount are gains of $0.5 million for the six months ended June 30, 2014, and unrealized losses of $10.1 million and gains of $10.0 million for the three and six months ended June 29, 2013, respectively, related to foreign currency movements on foreign-denominated financing instruments entered into in conjunction with the closing of the Acquisition. These amounts were partially offset by unrealized gains of $3.9 million and losses of $6.7 million for the three and six months ended June 29, 2013, respectively, related to foreign cash positions and foreign exchange contracts entered into to hedge our risk associated with payments of this foreign-denominated debt. Additionally, we recorded net gains of $0.5 million and $0.8 million related to other foreign exchange and derivative activity during the three and six months ended June 30, 2014, respectively. We recorded net losses related to other foreign exchange and derivative activity of $2.6 million and $9.4 million for the three and six months ended June 29, 2013, respectively. |
|
Canada | Europe | MCI | Consolidated | ||||||||||||
(In millions) | |||||||||||||||
Balance at December 31, 2013 | $ | 718.2 | $ | 1,693.2 | $ | 7.3 | $ | 2,418.7 | |||||||
Foreign currency translation | (3.2 | ) | 25.1 | 0.1 | 22.0 | ||||||||||
Balance at June 30, 2014 | $ | 715.0 | $ | 1,718.3 | $ | 7.4 | $ | 2,440.7 |
Useful life | Gross | Accumulated amortization | Net | ||||||||||
(Years) | (In millions) | ||||||||||||
Intangible assets subject to amortization: | |||||||||||||
Brands | 3 - 40 | $ | 540.3 | $ | (239.7 | ) | $ | 300.6 | |||||
Distribution rights | 2 - 23 | 271.8 | (225.9 | ) | 45.9 | ||||||||
Patents and technology and distribution channels | 3 - 10 | 37.4 | (34.4 | ) | 3.0 | ||||||||
Other | 2 | 1.2 | (1.2 | ) | — | ||||||||
Intangible assets not subject to amortization: | |||||||||||||
Brands | Indefinite | 5,462.2 | — | 5,462.2 | |||||||||
Distribution networks | Indefinite | 948.0 | — | 948.0 | |||||||||
Other | Indefinite | 17.5 | — | 17.5 | |||||||||
Total | $ | 7,278.4 | $ | (501.2 | ) | $ | 6,777.2 |
Useful life | Gross | Accumulated amortization | Net | ||||||||||
(Years) | (In millions) | ||||||||||||
Intangible assets subject to amortization: | |||||||||||||
Brands | 3 - 40 | $ | 537.5 | $ | (224.7 | ) | $ | 312.8 | |||||
Distribution rights | 2 - 23 | 314.1 | (255.0 | ) | 59.1 | ||||||||
Patents and technology and distribution channels | 3 - 10 | 36.2 | (32.8 | ) | 3.4 | ||||||||
Other | 2 | 1.2 | (1.2 | ) | — | ||||||||
Intangible assets not subject to amortization: | |||||||||||||
Brands | Indefinite | 5,482.3 | — | 5,482.3 | |||||||||
Distribution networks | Indefinite | 952.3 | — | 952.3 | |||||||||
Other | Indefinite | 15.2 | — | 15.2 | |||||||||
Total | $ | 7,338.8 | $ | (513.7 | ) | $ | 6,825.1 |
Fiscal year | Amount | ||
(In millions) | |||
2014 - remaining | $ | 21.3 | |
2015 | $ | 40.2 | |
2016 | $ | 40.2 | |
2017 | $ | 14.1 | |
2018 | $ | 12.3 |
|
As of | |||||||
June 30, 2014 | December 31, 2013 | ||||||
(In millions) | |||||||
Senior notes: | |||||||
€500 million 0.0% convertible note due 2013(1) | $ | — | $ | 61.8 | |||
Canadian Dollar ("CAD") 900 million 5.0% notes due 2015 | 843.4 | 847.2 | |||||
CAD 500 million 3.95% Series A notes due 2017 | 468.6 | 470.7 | |||||
$300 million 2.0% notes due 2017 | 300.0 | 300.0 | |||||
$500 million 3.5% notes due 2022 (2) | 501.2 | 500.0 | |||||
$1.1 billion 5.0% notes due 2042 | 1,100.0 | 1,100.0 | |||||
Other long-term debt | 0.1 | 0.2 | |||||
Long-term credit facilities(3) | — | — | |||||
Less: unamortized debt discounts and other | (4.7 | ) | (5.1 | ) | |||
Total long-term debt (including current portion) | 3,208.6 | 3,274.8 | |||||
Less: current portion of long-term debt | — | (61.8 | ) | ||||
Total long-term debt | $ | 3,208.6 | $ | 3,213.0 | |||
Short-term borrowings(3) | $ | 451.6 | $ | 525.1 | |||
Current portion of long-term debt | — | 61.8 | |||||
Current portion of long-term debt and short-term borrowings | $ | 451.6 | $ | 586.9 |
(1) | On June 15, 2012, we issued a €500 million convertible note due December 31, 2013, which included a put conversion feature to the Seller. On August 13, 2013, the conversion feature was exercised for an agreed-upon value upon exercise of €510.9 million, consisting of €500 million in principal and €10.9 million for the conversion feature. |
(2) | In the second quarter of 2014, we entered into interest rate swaps to economically convert a portion of our fixed rate $500 million 3.5% notes due 2022 ("$500 million notes") to floating rate debt. This resulted in an effective interest rate of 3.31% and 3.40%, for the three and six months ended June 30, 2014, respectively. As a result of this hedge program, the carrying value of the $500 million note includes a $1.2 million adjustment for fair value movements attributable to the benchmark interest rate. See Note 13, "Derivative Instruments and Hedging Activities" for further details. |
(3) | As of June 30, 2014, and December 31, 2013, the outstanding borrowings under the commercial paper program were $301.1 million and $379.8 million, respectively, with a weighted average effective interest rate and tenor for these outstanding borrowings of 0.38%; 29.6 days and 0.49%; 47.2 days, respectively. We have a revolving credit facility in Europe to provide €150 million on an uncommitted basis through September 2014. As of June 30, 2014, there were no outstanding borrowings under this revolving credit facility and as of December 31, 2013, the outstanding borrowings under this revolving credit facility were $137.4 million (€100.0 million). |
|
MCBC shareholders | |||||||||||||||||||
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, 2013 | $ | 979.1 | $ | 14.6 | $ | (556.3 | ) | $ | (282.5 | ) | $ | 154.9 | |||||||
Foreign currency translation adjustments | 28.5 | (8.9 | ) | 0.1 | — | 19.7 | |||||||||||||
Unrealized gain (loss) on derivative instruments | — | 6.3 | — | — | 6.3 | ||||||||||||||
Reclassification of derivative (gain) loss to income | — | (8.2 | ) | — | — | (8.2 | ) | ||||||||||||
Amortization of net prior service (benefit) cost and net actuarial (gain) loss to income | — | — | 16.8 | — | 16.8 | ||||||||||||||
Ownership share of unconsolidated subsidiaries' other comprehensive income (loss) | — | — | — | 16.9 | 16.9 | ||||||||||||||
Tax benefit (expense) | (41.6 | ) | 0.2 | (1.4 | ) | (7.7 | ) | (50.5 | ) | ||||||||||
As of June 30, 2014 | $ | 966.0 | $ | 4.0 | $ | (540.8 | ) | $ | (273.3 | ) | $ | 155.9 |
Three Months Ended | Six Months Ended | |||||||||||||||||
June 30, 2014 | June 29, 2013 | June 30, 2014 | June 29, 2013 | |||||||||||||||
Reclassifications from AOCI | Location of gain (loss) recognized in income | |||||||||||||||||
(In millions) | ||||||||||||||||||
Gain/(loss) on cash flow hedges: | ||||||||||||||||||
Forward starting interest rate swaps | $ | (0.4 | ) | $ | (0.4 | ) | $ | (0.8 | ) | $ | (0.8 | ) | Interest expense, net | |||||
Foreign currency forwards | 0.7 | 0.5 | 2.3 | 0.4 | Other income (expense), net | |||||||||||||
Foreign currency forwards | 3.0 | 1.2 | 6.3 | 1.7 | Cost of goods sold | |||||||||||||
Commodity swaps | 0.2 | 0.2 | 0.4 | — | Cost of goods sold | |||||||||||||
Total income (loss) reclassified, before tax | 3.5 | 1.5 | 8.2 | 1.3 | ||||||||||||||
Income tax benefit (expense) | (1.1 | ) | (0.7 | ) | (2.6 | ) | (0.6 | ) | ||||||||||
Net income (loss) reclassified, net of tax | $ | 2.4 | $ | 0.8 | $ | 5.6 | $ | 0.7 | ||||||||||
Amortization of defined benefit pension and other postretirement benefit plan items: | ||||||||||||||||||
Prior service benefit (cost) | $ | 0.5 | $ | 0.7 | $ | 1.1 | $ | 1.4 | (1) | |||||||||
Net actuarial gain (loss) | (9.0 | ) | (14.0 | ) | (17.9 | ) | (28.2 | ) | (1) | |||||||||
Total income (loss) reclassified, before tax | (8.5 | ) | (13.3 | ) | (16.8 | ) | (26.8 | ) | ||||||||||
Income tax benefit (expense) | 0.7 | — | 1.4 | 2.9 | ||||||||||||||
Net income (loss) reclassified, net of tax | $ | (7.8 | ) | $ | (13.3 | ) | $ | (15.4 | ) | $ | (23.9 | ) | ||||||
Total income (loss) reclassified, net of tax | $ | (5.4 | ) | $ | (12.5 | ) | $ | (9.8 | ) | $ | (23.2 | ) |
(1) | These components of AOCI are included in the computation of net periodic pension and other postretirement benefit cost. See Note 14, "Pension and Other Postretirement Benefits" for additional details. |
|
Fair value measurements as of June 30, 2014 | |||||||||||||||
Total at June 30, 2014 | Quoted prices in active markets (Level 1) | Significant other observable inputs (Level 2) | Significant unobservable inputs (Level 3) | ||||||||||||
(In millions) | |||||||||||||||
Interest rate swaps | $ | 0.9 | $ | — | $ | 0.9 | $ | — | |||||||
Foreign currency forwards | 10.6 | — | 10.6 | — | |||||||||||
Commodity swaps | (4.1 | ) | — | (4.1 | ) | — | |||||||||
Total | $ | 7.4 | $ | — | $ | 7.4 | $ | — |
Fair value measurements as of December 31, 2013 | |||||||||||||||
Total at December 31, 2013 | Quoted prices in active markets (Level 1) | Significant other observable inputs (Level 2) | Significant unobservable inputs (Level 3) | ||||||||||||
(In millions) | |||||||||||||||
Cross currency swaps | $ | (71.7 | ) | $ | — | $ | (71.7 | ) | $ | — | |||||
Foreign currency forwards | 19.7 | — | 19.7 | — | |||||||||||
Commodity swaps | (4.9 | ) | — | (4.9 | ) | — | |||||||||
Total | $ | (56.9 | ) | $ | — | $ | (56.9 | ) | $ | — |
June 30, 2014 | |||||||||||||||
Asset derivatives | Liability derivatives | ||||||||||||||
Notional amount | Balance sheet location | Fair value | Balance sheet location | Fair value | |||||||||||
Derivatives designated as hedging instruments: | |||||||||||||||
Interest rate swaps | USD | 337.5 | Other non-current assets | $ | 1.2 | Other liabilities | $ | (0.3 | ) | ||||||
Foreign currency forwards | USD | 413.6 | Other current assets | 8.3 | Accounts payable and other current liabilities | (0.1 | ) | ||||||||
Other non-current assets | 3.9 | Other liabilities | (1.5 | ) | |||||||||||
Total derivatives designated as hedging instruments | $ | 13.4 | $ | (1.9 | ) | ||||||||||
Derivatives not designated as hedging instruments: | |||||||||||||||
Commodity swaps - Natural Gas | kWh | 744.3 | Other current assets | $ | 0.5 | Accounts payable and other current liabilities | $ | (0.9 | ) | ||||||
Other non-current assets | 0.1 | Other liabilities | (0.4 | ) | |||||||||||
Commodity swaps - Other | Metric tonnes (actual) | 48,657 | Other current assets | 0.3 | Accounts payable and other current liabilities | (1.7 | ) | ||||||||
Other non-current assets | 0.4 | Other liabilities | (2.4 | ) | |||||||||||
Total derivatives not designated as hedging instruments | $ | 1.3 | $ | (5.4 | ) |
December 31, 2013 | |||||||||||||||
Asset derivatives | Liability derivatives | ||||||||||||||
Notional amount | Balance sheet location | Fair value | Balance sheet location | Fair value | |||||||||||
Derivatives designated as hedging instruments: | |||||||||||||||
Cross currency swaps | CAD | 240.7 | Other current assets | $ | — | Accounts payable and other current liabilities | $ | (71.7 | ) | ||||||
Foreign currency forwards | USD | 476.1 | Other current assets | 11.5 | Accounts payable and other current liabilities | — | |||||||||
Other non-current assets | 8.2 | Other liabilities | — | ||||||||||||
Commodity swaps | kWh | 848.8 | Other current assets | 0.2 | Accounts payable and other current liabilities | (0.2 | ) | ||||||||
Other non-current assets | 0.1 | Other liabilities | (0.3 | ) | |||||||||||
Total derivatives designated as hedging instruments | $ | 20.0 | $ | (72.2 | ) | ||||||||||
Derivatives not designated as hedging instruments: | |||||||||||||||
Commodity swaps | Metric tonnes (actual) | 55,653 | Other current assets | $ | — | Accounts payable and other current liabilities | $ | (2.0 | ) | ||||||
Other non-current assets | — | Other liabilities | (2.7 | ) | |||||||||||
Total derivatives not designated as hedging instruments | $ | — | $ | (4.7 | ) |
For the Three Months Ended June 30, 2014 | ||||||||||||||||
Derivatives in cash flow hedge relationships | Amount of gain (loss) recognized in OCI on derivative (effective portion) | Location of gain (loss) reclassified from AOCI into income (effective portion) | Amount of gain (loss) recognized from AOCI on derivative (effective portion) | Location of gain (loss) recognized in income on derivative (ineffective portion and amount excluded from effectiveness testing) | Amount of gain (loss) recognized in income on derivative (ineffective portion and amount excluded from effectiveness testing) | |||||||||||
Forward starting interest rate swaps | $ | (0.3 | ) | Interest expense, net | $ | (0.4 | ) | Interest expense, net | $ | — | ||||||
Foreign currency forwards | (15.1 | ) | Other income (expense), net | 0.7 | Other income (expense), net | — | ||||||||||
Cost of goods sold | 3.0 | Cost of goods sold | — | |||||||||||||
Commodity swaps | 0.2 | Cost of goods sold | 0.2 | Cost of goods sold | — | |||||||||||
Total | $ | (15.2 | ) | $ | 3.5 | $ | — |
For the Three Months Ended June 30, 2014 | ||||||
Derivatives in fair value hedge relationships | Amount of gain (loss) recognized in income on derivative | Location of gain (loss) recognized in income | ||||
Interest rate swaps | $ | 1.2 | Interest expense, net | |||
Total | $ | 1.2 |
For the Three Months Ended June 29, 2013 | ||||||||||||||||
Derivatives in cash flow hedge relationships | Amount of gain (loss) recognized in OCI on derivative (effective portion) | Location of gain (loss) reclassified from AOCI into income (effective portion) | Amount of gain (loss) recognized from AOCI on derivative (effective portion) | Location of gain (loss) recognized in income on derivative (ineffective portion and amount excluded from effectiveness testing) | Amount of gain (loss) recognized in income on derivative (ineffective portion and amount excluded from effectiveness testing) | |||||||||||
Forward starting interest rate swaps | $ | — | Interest expense, net | $ | (0.4 | ) | Interest expense, net | $ | — | |||||||
Foreign currency forwards | 14.8 | Other income (expense), net | 0.5 | Other income (expense), net | — | |||||||||||
Cost of goods sold | 1.2 | Cost of goods sold | — | |||||||||||||
Commodity swaps | (0.6 | ) | Cost of goods sold | 0.2 | Cost of goods sold | — | ||||||||||
Total | $ | 14.2 | $ | 1.5 | $ | — |
For the Three Months Ended June 29, 2013 | ||||||||||||||||
Derivatives and non-derivative financial instruments in net investment hedge relationships | Amount of gain (loss) recognized in OCI (effective portion) | Location of gain (loss) reclassified from AOCI into income (effective portion) | Amount of gain (loss) recognized from AOCI (effective portion) | Location of gain (loss) recognized in income (ineffective portion and amount excluded from effectiveness testing) | Amount of gain (loss) recognized in income (ineffective portion and amount excluded from effectiveness testing) | |||||||||||
Cross currency swaps | $ | 15.3 | Other income (expense), net | $ | — | Other income (expense), net | $ | — | ||||||||
€120 million term loan due 2016 | (1.7 | ) | Other income (expense), net | — | Other income (expense), net | — | ||||||||||
Total | $ | 13.6 | $ | — | $ | — |
For the Three Months Ended June 30, 2014 | ||||||
Derivatives not in hedging relationships | Location of gain (loss) recognized in income on derivative | Amount of gain (loss) recognized in income on derivative | ||||
Commodity swaps | Cost of goods sold | $ | 0.7 | |||
Total | $ | 0.7 |
For the Three Months Ended June 29, 2013 | ||||||
Derivatives not in hedging relationships | Location of gain (loss) recognized in income on derivative | Amount of gain (loss) recognized in income on derivative | ||||
Equity conversion feature of debt | Interest expense, net | $ | 3.2 | |||
Other income (expense), net | (0.5 | ) | ||||
Commodity Swaps | Cost of goods sold | (1.5 | ) | |||
Foreign currency forwards | Other income (expense), net | 3.9 | ||||
Total | $ | 5.1 |
For the Six Months Ended June 30, 2014 | ||||||
Derivatives not in hedging relationships | Location of gain (loss) recognized in income on derivative | Amount of gain (loss) recognized in income on derivative | ||||
Commodity swaps | Cost of goods sold | $ | (0.6 | ) | ||
Total | $ | (0.6 | ) |
For the Six Months Ended June 29, 2013 | ||||||
Derivatives not in hedging relationships | Location of gain (loss) recognized in income on derivative | Amount of gain (loss) recognized in income on derivative | ||||
Equity conversion feature of debt | Interest expense, net | $ | (26.5 | ) | ||
Other income (expense), net | (0.3 | ) | ||||
Commodity Swaps | Cost of goods sold | (1.5 | ) | |||
Foreign currency forwards | Other income (expense), net | (6.7 | ) | |||
Total | $ | (35.0 | ) |
|
For the Three Months Ended | |||||||||||||||||||||||
June 30, 2014 | June 29, 2013 | ||||||||||||||||||||||
Pension | OPEB | Consolidated | Pension | OPEB | Consolidated | ||||||||||||||||||
(In millions) | |||||||||||||||||||||||
Net periodic pension and OPEB cost: | |||||||||||||||||||||||
Service cost - benefits earned during the year | $ | 3.3 | $ | 0.8 | $ | 4.1 | $ | 4.0 | $ | 0.9 | $ | 4.9 | |||||||||||
Interest cost on projected benefit obligation | 42.6 | 1.9 | 44.5 | 38.8 | 1.8 | 40.6 | |||||||||||||||||
Expected return on plan assets | (49.8 | ) | — | (49.8 | ) | (44.0 | ) | — | (44.0 | ) | |||||||||||||
Amortization of prior service cost (benefit) | 0.2 | (0.7 | ) | (0.5 | ) | 0.2 | (0.9 | ) | (0.7 | ) | |||||||||||||
Amortization of net actuarial loss (gain) | 9.3 | (0.3 | ) | 9.0 | 14.1 | (0.1 | ) | 14.0 | |||||||||||||||
Less: expected participant contributions | (0.3 | ) | — | (0.3 | ) | (0.3 | ) | — | (0.3 | ) | |||||||||||||
Net periodic pension and OPEB cost | $ | 5.3 | $ | 1.7 | $ | 7.0 | $ | 12.8 | $ | 1.7 | $ | 14.5 |
For the Six Months Ended | |||||||||||||||||||||||
June 30, 2014 | June 29, 2013 | ||||||||||||||||||||||
Pension | OPEB | Consolidated | Pension | OPEB | Consolidated | ||||||||||||||||||
(In millions) | |||||||||||||||||||||||
Net periodic pension and OPEB cost: | |||||||||||||||||||||||
Service cost - benefits earned during the year | 6.6 | 1.5 | 8.1 | $ | 8.0 | $ | 1.8 | $ | 9.8 | ||||||||||||||
Interest cost on projected benefit obligation | 84.7 | 3.6 | 88.3 | 78.2 | 3.6 | 81.8 | |||||||||||||||||
Expected return on plan assets | (98.9 | ) | — | (98.9 | ) | (88.7 | ) | — | (88.7 | ) | |||||||||||||
Amortization of prior service cost (benefit) | 0.4 | (1.5 | ) | (1.1 | ) | 0.4 | (1.8 | ) | (1.4 | ) | |||||||||||||
Amortization of net actuarial loss (gain) | 18.4 | (0.5 | ) | 17.9 | 28.4 | (0.2 | ) | 28.2 | |||||||||||||||
Less: expected participant contributions | (0.6 | ) | — | (0.6 | ) | (0.6 | ) | — | (0.6 | ) | |||||||||||||
Net periodic pension and OPEB cost | $ | 10.6 | $ | 3.1 | $ | 13.7 | $ | 25.7 | $ | 3.4 | $ | 29.1 |
|
Parent Guarantor and 2012 Issuer | Subsidiary Guarantors | Subsidiary Non Guarantors | Eliminations | Consolidated | |||||||||||||||
Sales | $ | 9.6 | $ | 1,310.9 | $ | 406.6 | $ | (67.4 | ) | $ | 1,659.7 | ||||||||
Excise taxes | — | (391.5 | ) | (90.2 | ) | — | (481.7 | ) | |||||||||||
Net sales | 9.6 | 919.4 | 316.4 | (67.4 | ) | 1,178.0 | |||||||||||||
Cost of goods sold | — | (521.7 | ) | (219.3 | ) | 56.9 | (684.1 | ) | |||||||||||
Gross profit | 9.6 | 397.7 | 97.1 | (10.5 | ) | 493.9 | |||||||||||||
Marketing, general and administrative expenses | (27.8 | ) | (198.5 | ) | (103.7 | ) | 10.5 | (319.5 | ) | ||||||||||
Special items, net | (0.7 | ) | (0.2 | ) | (0.4 | ) | — | (1.3 | ) | ||||||||||
Equity income (loss) in subsidiaries | 250.4 | (121.4 | ) | 141.5 | (270.5 | ) | — | ||||||||||||
Equity income in MillerCoors | — | 172.6 | — | — | 172.6 | ||||||||||||||
Operating income (loss) | 231.5 | 250.2 | 134.5 | (270.5 | ) | 345.7 | |||||||||||||
Interest income (expense), net | (27.7 | ) | 84.0 | (97.5 | ) | — | (41.2 | ) | |||||||||||
Other income (expense), net | 15.0 | (10.2 | ) | (12.1 | ) | — | (7.3 | ) | |||||||||||
Income (loss) from continuing operations before income taxes | 218.8 | 324.0 | 24.9 | (270.5 | ) | 297.2 | |||||||||||||
Income tax benefit (expense) | 48.5 | (74.4 | ) | (4.1 | ) | — | (30.0 | ) | |||||||||||
Net income (loss) from continuing operations | 267.3 | 249.6 | 20.8 | (270.5 | ) | 267.2 | |||||||||||||
Income (loss) from discontinued operations, net of tax | — | — | 1.7 | — | 1.7 | ||||||||||||||
Net income (loss) including noncontrolling interests | 267.3 | 249.6 | 22.5 | (270.5 | ) | 268.9 | |||||||||||||
Net (income) loss attributable to noncontrolling interests | — | — | (1.6 | ) | — | (1.6 | ) | ||||||||||||
Net income (loss) attributable to MCBC | $ | 267.3 | $ | 249.6 | $ | 20.9 | $ | (270.5 | ) | $ | 267.3 | ||||||||
Comprehensive income (loss) attributable to MCBC | $ | 180.6 | $ | 180.4 | $ | 38.7 | $ | (219.1 | ) | $ | 180.6 |
Parent Guarantor and 2012 Issuer | Subsidiary Guarantors | Subsidiary Non Guarantors | Eliminations | Consolidated | |||||||||||||||
Sales | $ | (3.2 | ) | $ | 1,262.5 | $ | 415.0 | $ | 11.6 | $ | 1,685.9 | ||||||||
Excise taxes | — | (405.2 | ) | (92.2 | ) | — | (497.4 | ) | |||||||||||
Net sales | (3.2 | ) | 857.3 | 322.8 | 11.6 | 1,188.5 | |||||||||||||
Cost of goods sold | — | (520.8 | ) | (147.2 | ) | (15.3 | ) | (683.3 | ) | ||||||||||
Gross profit | (3.2 | ) | 336.5 | 175.6 | (3.7 | ) | 505.2 | ||||||||||||
Marketing, general and administrative expenses | (29.6 | ) | (193.7 | ) | (108.2 | ) | 3.7 | (327.8 | ) | ||||||||||
Special items, net | (0.3 | ) | (0.6 | ) | (1.8 | ) | — | (2.7 | ) | ||||||||||
Equity income (loss) in subsidiaries | 296.0 | 60.0 | 99.0 | (455.0 | ) | — | |||||||||||||
Equity income in MillerCoors | — | 190.1 | — | — | 190.1 | ||||||||||||||
Operating income (loss) | 262.9 | 392.3 | 164.6 | (455.0 | ) | 364.8 | |||||||||||||
Interest income (expense), net | (22.4 | ) | 73.9 | (87.7 | ) | — | (36.2 | ) | |||||||||||
Other income (expense), net | 2.1 | 1.2 | (2.6 | ) | — | 0.7 | |||||||||||||
Income (loss) from continuing operations before income taxes | 242.6 | 467.4 | 74.3 | (455.0 | ) | 329.3 | |||||||||||||
Income tax benefit (expense) | 48.3 | (117.1 | ) | 32.4 | — | (36.4 | ) | ||||||||||||
Net income (loss) from continuing operations | 290.9 | 350.3 | 106.7 | (455.0 | ) | 292.9 | |||||||||||||
Income (loss) from discontinued operations, net of tax | — | — | 0.2 | — | 0.2 | ||||||||||||||
Net income (loss) including noncontrolling interests | 290.9 | 350.3 | 106.9 | (455.0 | ) | 293.1 | |||||||||||||
Net (income) loss attributable to noncontrolling interests | — | — | (2.2 | ) | — | (2.2 | ) | ||||||||||||
Net income (loss) attributable to MCBC | $ | 290.9 | $ | 350.3 | $ | 104.7 | $ | (455.0 | ) | $ | 290.9 | ||||||||
Comprehensive income (loss) attributable to MCBC | $ | 453.4 | $ | 508.5 | $ | 156.0 | $ | (664.5 | ) | $ | 453.4 |
Parent Guarantor and 2012 Issuer | Subsidiary Guarantors | Subsidiary Non Guarantors | Eliminations | Consolidated | |||||||||||||||
Sales | $ | 4.8 | $ | 2,213.3 | $ | 674.0 | $ | (27.9 | ) | $ | 2,864.2 | ||||||||
Excise taxes | — | (710.1 | ) | (149.6 | ) | — | (859.7 | ) | |||||||||||
Net sales | 4.8 | 1,503.2 | 524.4 | (27.9 | ) | 2,004.5 | |||||||||||||
Cost of goods sold | — | (925.5 | ) | (290.0 | ) | 9.0 | (1,206.5 | ) | |||||||||||
Gross profit | 4.8 | 577.7 | 234.4 | (18.9 | ) | 798.0 | |||||||||||||
Marketing, general and administrative expenses | (60.8 | ) | (367.5 | ) | (182.3 | ) | 18.9 | (591.7 | ) | ||||||||||
Special items, net | (0.3 | ) | (11.3 | ) | 61.4 | — | 49.8 | ||||||||||||
Equity income (loss) in subsidiaries | 497.4 | 26.3 | 120.2 | (643.9 | ) | — | |||||||||||||
Equity income in MillerCoors | — | 312.9 | — | — | 312.9 | ||||||||||||||
Operating income (loss) | 441.1 | 538.1 | 233.7 | (643.9 | ) | 569.0 | |||||||||||||
Interest income (expense), net | (43.8 | ) | 149.7 | (177.5 | ) | — | (71.6 | ) | |||||||||||
Other income (expense), net | 2.4 | 3.2 | (4.1 | ) | — | 1.5 | |||||||||||||
Income (loss) from continuing operations before income taxes | 399.7 | 691.0 | 52.1 | (643.9 | ) | 498.9 | |||||||||||||
Income tax benefit (expense) | 54.6 | (132.4 | ) | 36.6 | — | (41.2 | ) | ||||||||||||
Net income (loss) from continuing operations | 454.3 | 558.6 | 88.7 | (643.9 | ) | 457.7 | |||||||||||||
Income (loss) from discontinued operations, net of tax | — | — | (1.7 | ) | — | (1.7 | ) | ||||||||||||
Net income (loss) including noncontrolling interests | 454.3 | 558.6 | 87.0 | (643.9 | ) | 456.0 | |||||||||||||
Net (income) loss attributable to noncontrolling interests | — | — | (1.7 | ) | — | (1.7 | ) | ||||||||||||
Net income (loss) attributable to MCBC | $ | 454.3 | $ | 558.6 | $ | 85.3 | $ | (643.9 | ) | $ | 454.3 | ||||||||
Comprehensive income attributable to MCBC | $ | 455.3 | $ | 602.5 | $ | 134.1 | $ | (736.6 | ) | $ | 455.3 |
Parent Guarantor and 2012 Issuer | Subsidiary Guarantors | Subsidiary Non Guarantors | Eliminations | Consolidated | |||||||||||||||
Sales | $ | 13.5 | $ | 2,283.7 | $ | 647.0 | $ | (99.7 | ) | $ | 2,844.5 | ||||||||
Excise taxes | — | (695.3 | ) | (142.7 | ) | — | (838.0 | ) | |||||||||||
Net sales | 13.5 | 1,588.4 | 504.3 | (99.7 | ) | 2,006.5 | |||||||||||||
Cost of goods sold | — | (949.4 | ) | (366.0 | ) | 84.2 | (1,231.2 | ) | |||||||||||
Gross profit | 13.5 | 639.0 | 138.3 | (15.5 | ) | 775.3 | |||||||||||||
Marketing, general and administrative expenses | (64.9 | ) | (382.8 | ) | (181.2 | ) | 15.5 | (613.4 | ) | ||||||||||
Special items, net | (1.0 | ) | (1.0 | ) | (0.8 | ) | — | (2.8 | ) | ||||||||||
Equity income (loss) in subsidiaries | 350.0 | (272.7 | ) | 176.7 | (254.0 | ) | — | ||||||||||||
Equity income in MillerCoors | — | 290.0 | — | — | 290.0 | ||||||||||||||
Operating income (loss) | 297.6 | 272.5 | 133.0 | (254.0 | ) | 449.1 | |||||||||||||
Interest income (expense), net | (53.7 | ) | 132.1 | (194.5 | ) | — | (116.1 | ) | |||||||||||
Other income (expense), net | 1.4 | 20.6 | (25.0 | ) | — | (3.0 | ) | ||||||||||||
Income (loss) from continuing operations before income taxes | 245.3 | 425.2 | (86.5 | ) | (254.0 | ) | 330.0 | ||||||||||||
Income tax benefit (expense) | 50.5 | (77.4 | ) | (5.1 | ) | — | (32.0 | ) | |||||||||||
Net income (loss) from continuing operations | 295.8 | 347.8 | (91.6 | ) | (254.0 | ) | 298.0 | ||||||||||||
Income (loss) from discontinued operations, net of tax | — | — | 0.8 | — | 0.8 | ||||||||||||||
Net income (loss) including noncontrolling interests | 295.8 | 347.8 | (90.8 | ) | (254.0 | ) | 298.8 | ||||||||||||
Net (income) loss attributable to noncontrolling interests | — | — | (3.0 | ) | — | (3.0 | ) | ||||||||||||
Net income (loss) attributable to MCBC | $ | 295.8 | $ | 347.8 | $ | (93.8 | ) | $ | (254.0 | ) | $ | 295.8 | |||||||
Comprehensive income attributable to MCBC | $ | (52.1 | ) | $ | 55.9 | $ | (187.3 | ) | $ | 131.4 | $ | (52.1 | ) |
Parent Guarantor and 2012 Issuer | Subsidiary Guarantors | Subsidiary Non Guarantors | Eliminations | Consolidated | |||||||||||||||
Assets | |||||||||||||||||||
Current assets: | |||||||||||||||||||
Cash and cash equivalents | $ | 77.4 | $ | 263.6 | $ | 165.0 | $ | — | $ | 506.0 | |||||||||
Accounts receivable, net | 0.1 | 498.6 | 232.2 | — | 730.9 | ||||||||||||||
Other receivables, net | 66.2 | 51.3 | 24.0 | — | 141.5 | ||||||||||||||
Total inventories, net | — | 223.7 | 53.6 | — | 277.3 | ||||||||||||||
Other current assets, net | 6.6 | 64.5 | 48.2 | — | 119.3 | ||||||||||||||
Deferred tax assets | — | 1.5 | 26.7 | (2.9 | ) | 25.3 | |||||||||||||
Intercompany accounts receivable | — | 3,395.0 | 278.8 | (3,673.8 | ) | — | |||||||||||||
Total current assets | 150.3 | 4,498.2 | 828.5 | (3,676.7 | ) | 1,800.3 | |||||||||||||
Properties, net | 31.3 | 1,267.4 | 675.3 | — | 1,974.0 | ||||||||||||||
Goodwill | — | 1,189.3 | 1,251.4 | — | 2,440.7 | ||||||||||||||
Other intangibles, net | — | 4,265.3 | 2,511.9 | — | 6,777.2 | ||||||||||||||
Investment in MillerCoors | — | 2,598.6 | — | — | 2,598.6 | ||||||||||||||
Net investment in and advances to subsidiaries | 13,469.9 | 3,211.4 | 6,856.1 | (23,537.4 | ) | — | |||||||||||||
Deferred tax assets | 9.1 | 2.1 | 0.1 | 5.2 | 16.5 | ||||||||||||||
Other assets | 22.2 | 177.5 | 66.0 | — | 265.7 | ||||||||||||||
Total assets | $ | 13,682.8 | $ | 17,209.8 | $ | 12,189.3 | $ | (27,208.9 | ) | $ | 15,873.0 | ||||||||
Liabilities and equity | |||||||||||||||||||
Current liabilities: | |||||||||||||||||||
Accounts payable and other current liabilities | $ | 67.2 | $ | 978.0 | $ | 469.5 | $ | — | $ | 1,514.7 | |||||||||
Deferred tax liabilities | 8.8 | 132.2 | — | (2.9 | ) | 138.1 | |||||||||||||
Current portion of long-term debt and short-term borrowings | 301.1 | — | 150.5 | — | 451.6 | ||||||||||||||
Discontinued operations | — | — | 7.3 | — | 7.3 | ||||||||||||||
Intercompany accounts payable | 2,419.8 | 298.4 | 955.6 | (3,673.8 | ) | — | |||||||||||||
Total current liabilities | 2,796.9 | 1,408.6 | 1,582.9 | (3,676.7 | ) | 2,111.7 | |||||||||||||
Long-term debt | 1,897.5 | 1,311.0 | 0.1 | — | 3,208.6 | ||||||||||||||
Pension and postretirement benefits | 2.8 | 433.5 | 7.0 | — | 443.3 | ||||||||||||||
Deferred tax liabilities | — | 0.2 | 972.0 | 5.2 | 977.4 | ||||||||||||||
Other liabilities | 26.8 | 24.2 | 77.4 | — | 128.4 | ||||||||||||||
Discontinued operations | — | — | 18.5 | — | 18.5 | ||||||||||||||
Intercompany notes payable | — | 1,547.9 | 6,270.0 | (7,817.9 | ) | — | |||||||||||||
Total liabilities | 4,724.0 | 4,725.4 | 8,927.9 | (11,489.4 | ) | 6,887.9 | |||||||||||||
MCBC stockholders' equity | 8,962.0 | 18,943.8 | 4,593.6 | (23,537.4 | ) | 8,962.0 | |||||||||||||
Intercompany notes receivable | (3.2 | ) | (6,459.4 | ) | (1,355.3 | ) | 7,817.9 | — | |||||||||||
Total stockholders' equity | 8,958.8 | 12,484.4 | 3,238.3 | (15,719.5 | ) | 8,962.0 | |||||||||||||
Noncontrolling interests | — | — | 23.1 | — | 23.1 | ||||||||||||||
Total equity | 8,958.8 | 12,484.4 | 3,261.4 | (15,719.5 | ) | 8,985.1 | |||||||||||||
Total liabilities and equity | $ | 13,682.8 | $ | 17,209.8 | $ | 12,189.3 | $ | (27,208.9 | ) | $ | 15,873.0 |
Parent Guarantor and 2012 Issuer | Subsidiary Guarantors | Subsidiary Non Guarantors | Eliminations | Consolidated | |||||||||||||||
Assets | |||||||||||||||||||
Current assets: | |||||||||||||||||||
Cash and cash equivalents | $ | 90.6 | $ | 248.7 | $ | 103.0 | $ | — | $ | 442.3 | |||||||||
Accounts receivable, net | 0.7 | 466.3 | 136.6 | — | 603.6 | ||||||||||||||
Other receivables, net | 48.0 | 56.5 | 19.9 | — | 124.4 | ||||||||||||||
Total inventories, net | — | 166.8 | 38.5 | — | 205.3 | ||||||||||||||
Other current assets, net | 8.4 | 60.1 | 43.2 | — | 111.7 | ||||||||||||||
Deferred tax assets | — | — | 53.3 | (2.9 | ) | 50.4 | |||||||||||||
Intercompany accounts receivable | — | 3,186.8 | 196.5 | (3,383.3 | ) | — | |||||||||||||
Total current assets | 147.7 | 4,185.2 | 591.0 | (3,386.2 | ) | 1,537.7 | |||||||||||||
Properties, net | 31.0 | 1,282.8 | 656.3 | — | 1,970.1 | ||||||||||||||
Goodwill | — | 1,161.8 | 1,256.9 | — | 2,418.7 | ||||||||||||||
Other intangibles, net | — | 4,292.3 | 2,532.8 | — | 6,825.1 | ||||||||||||||
Investment in MillerCoors | — | 2,506.5 | — | — | 2,506.5 | ||||||||||||||
Net investment in and advances to subsidiaries | 12,860.9 | 3,303.7 | 6,654.9 | (22,819.5 | ) | — | |||||||||||||
Deferred tax assets | 28.8 | 3.1 | 1.0 | 5.4 | 38.3 | ||||||||||||||
Other assets | 35.5 | 175.0 | 73.2 | — | 283.7 | ||||||||||||||
Total assets | $ | 13,103.9 | $ | 16,910.4 | $ | 11,766.1 | $ | (26,200.3 | ) | $ | 15,580.1 | ||||||||
Liabilities and equity | |||||||||||||||||||
Current liabilities: | |||||||||||||||||||
Accounts payable and other current liabilities | $ | 71.5 | $ | 998.6 | $ | 359.5 | $ | — | $ | 1,429.6 | |||||||||
Deferred tax liabilities | 8.8 | 132.2 | — | (2.9 | ) | 138.1 | |||||||||||||
Current portion of long-term debt and short-term borrowings | 379.7 | 61.8 | 145.4 | — | 586.9 | ||||||||||||||
Discontinued operations | — | — | 6.8 | — | 6.8 | ||||||||||||||
Intercompany accounts payable | 2,120.7 | 228.3 | 1,034.3 | (3,383.3 | ) | — | |||||||||||||
Total current liabilities | 2,580.7 | 1,420.9 | 1,546.0 | (3,386.2 | ) | 2,161.4 | |||||||||||||
Long-term debt | 1,896.2 | 1,316.6 | 0.2 | — | 3,213.0 | ||||||||||||||
Pension and postretirement benefits | 2.6 | 453.3 | 6.7 | — | 462.6 | ||||||||||||||
Deferred tax liabilities | — | — | 906.0 | 5.4 | 911.4 | ||||||||||||||
Other liabilities | 22.4 | 22.4 | 139.5 | — | 184.3 | ||||||||||||||
Discontinued operations | — | — | 17.3 | — | 17.3 | ||||||||||||||
Intercompany notes payable | — | 1,693.9 | 6,138.9 | (7,832.8 | ) | — | |||||||||||||
Total liabilities | 4,501.9 | 4,907.1 | 8,754.6 | (11,213.6 | ) | 6,950.0 | |||||||||||||
MCBC stockholders' equity | 8,605.2 | 18,332.5 | 4,487.0 | (22,819.5 | ) | 8,605.2 | |||||||||||||
Intercompany notes receivable | (3.2 | ) | (6,329.2 | ) | (1,500.4 | ) | 7,832.8 | — | |||||||||||
Total stockholders' equity | 8,602.0 | 12,003.3 | 2,986.6 | (14,986.7 | ) | 8,605.2 | |||||||||||||
Noncontrolling interests | — | — | 24.9 | — | 24.9 | ||||||||||||||
Total equity | 8,602.0 | 12,003.3 | 3,011.5 | (14,986.7 | ) | 8,630.1 | |||||||||||||
Total liabilities and equity | $ | 13,103.9 | $ | 16,910.4 | $ | 11,766.1 | $ | (26,200.3 | ) | $ | 15,580.1 |
Parent Guarantor and 2012 Issuer | Subsidiary Guarantors | Subsidiary Non Guarantors | Eliminations | Consolidated | |||||||||||||||
Net cash provided by (used in) operating activities | $ | 174.6 | $ | 301.1 | $ | 187.5 | $ | (72.2 | ) | $ | 591.0 | ||||||||
CASH FLOWS FROM INVESTING ACTIVITIES: | |||||||||||||||||||
Additions to properties | (4.6 | ) | (64.7 | ) | (80.4 | ) | — | (149.7 | ) | ||||||||||
Proceeds from sales of properties and other assets | — | 1.5 | 3.4 | — | 4.9 | ||||||||||||||
Proceeds from sale of business | — | — | 2.0 | — | 2.0 | ||||||||||||||
Investment in MillerCoors | — | (615.3 | ) | — | — | (615.3 | ) | ||||||||||||
Return of capital from MillerCoors | — | 515.2 | — | — | 515.2 | ||||||||||||||
Investment in and advances to an unconsolidated affiliate | — | — | (2.8 | ) | — | (2.8 | ) | ||||||||||||
Loan repayments | — | 4.7 | (0.2 | ) | — | 4.5 | |||||||||||||
Loan advances | — | (3.7 | ) | — | — | (3.7 | ) | ||||||||||||
Net intercompany investing activity | — | (12.2 | ) | — | 12.2 | — | |||||||||||||
Net cash provided by (used in) investing activities | (4.6 | ) | (174.5 | ) | (78.0 | ) | 12.2 | (244.9 | ) | ||||||||||
CASH FLOWS FROM FINANCING ACTIVITIES: | |||||||||||||||||||
Exercise of stock options under equity compensation plans | 63.1 | — | — | — | 63.1 | ||||||||||||||
Excess tax benefits from share-based compensation | 5.4 | — | — | — | 5.4 | ||||||||||||||
Dividends paid | (102.8 | ) | — | (86.2 | ) | 72.2 | (116.8 | ) | |||||||||||
Dividends paid to noncontrolling interest holders | — | — | (1.2 | ) | — | (1.2 | ) | ||||||||||||
Payments for purchase of noncontrolling interest | — | — | (0.2 | ) | — | (0.2 | ) | ||||||||||||
Debt issuance costs | (0.2 | ) | — | — | — | (0.2 | ) | ||||||||||||
Payments on long-term debt and capital lease obligations | — | (0.4 | ) | (52.0 | ) | — | (52.4 | ) | |||||||||||
Proceeds from short-term borrowings | — | — | 9.3 | — | 9.3 | ||||||||||||||
Payments on short-term borrowings | — | — | (15.1 | ) | — | (15.1 | ) | ||||||||||||
Payments on settlement of derivative instruments | — | (35.1 | ) | — | — | (35.1 | ) | ||||||||||||
Net proceeds from (payments on) revolving credit facilities and commercial paper | — | — | (2.9 | ) | — | (2.9 | ) | ||||||||||||
Change in overdraft balances and other | — | — | 2.0 | — | 2.0 | ||||||||||||||
Net intercompany financing activity | — | 12.2 | (12.2 | ) | — | ||||||||||||||
Net cash provided by (used in) financing activities | (34.5 | ) | (35.5 | ) | (134.1 | ) | 60.0 | (144.1 | ) | ||||||||||
CASH AND CASH EQUIVALENTS: | |||||||||||||||||||
Net increase (decrease) in cash and cash equivalents | 135.5 | 91.1 | (24.6 | ) | — | 202.0 | |||||||||||||
Effect of foreign exchange rate changes on cash and cash equivalents | — | (23.0 | ) | (1.4 | ) | — | (24.4 | ) | |||||||||||
Balance at beginning of year | 189.8 | 249.3 | 184.9 | — | 624.0 | ||||||||||||||
Balance at end of period | $ | 325.3 | $ | 317.4 | $ | 158.9 | $ | — | $ | 801.6 |
Parent Guarantor and 2012 Issuer | Subsidiary Guarantors | Subsidiary Non Guarantors | Eliminations | Consolidated | |||||||||||||||
Net cash provided by (used in) operating activities | $ | 178.0 | $ | 292.2 | $ | 109.9 | $ | (4.1 | ) | $ | 576.0 | ||||||||
CASH FLOWS FROM INVESTING ACTIVITIES: | |||||||||||||||||||
Additions to properties | (5.5 | ) | (79.2 | ) | (41.7 | ) | — | (126.4 | ) | ||||||||||
Proceeds from sales of properties and other assets | — | 2.8 | 1.3 | — | 4.1 | ||||||||||||||
Investment in MillerCoors | — | (764.4 | ) | — | — | (764.4 | ) | ||||||||||||
Return of capital from MillerCoors | — | 691.9 | — | — | 691.9 | ||||||||||||||
Loan repayments | — | 4.0 | — | — | 4.0 | ||||||||||||||
Loan advances | — | (3.3 | ) | — | — | (3.3 | ) | ||||||||||||
Net intercompany investing activity | (15.1 | ) | 137.6 | 157.5 | (280.0 | ) | — | ||||||||||||
Net cash provided by (used in) investing activities | (20.6 | ) | (10.6 | ) | 117.1 | (280.0 | ) | (194.1 | ) | ||||||||||
CASH FLOWS FROM FINANCING ACTIVITIES: | |||||||||||||||||||
Exercise of stock options under equity compensation plans | 27.7 | — | — | — | 27.7 | ||||||||||||||
Excess tax benefits from share-based compensation | 3.2 | — | — | — | 3.2 | ||||||||||||||
Dividends paid | (120.6 | ) | — | (20.2 | ) | 4.1 | (136.7 | ) | |||||||||||
Dividends paid to noncontrolling interest holders | — | — | (2.4 | ) | — | (2.4 | ) | ||||||||||||
Payments for purchase of noncontrolling interest | — | — | (0.4 | ) | (0.4 | ) | |||||||||||||
Debt issuance costs | (1.8 | ) | — | — | — | (1.8 | ) | ||||||||||||
Payments on long-term debt and capital lease obligations | (0.4 | ) | (61.7 | ) | (0.1 | ) | — | (62.2 | ) | ||||||||||
Proceeds from short-term borrowings | — | — | 20.9 | — | 20.9 | ||||||||||||||
Payments on short-term borrowings | — | — | (23.3 | ) | — | (23.3 | ) | ||||||||||||
Payments on settlement of derivative instruments | — | (65.2 | ) | — | — | (65.2 | ) | ||||||||||||
Net proceeds from (payments on) revolving credit facilities and commercial paper | (78.7 | ) | — | (135.6 | ) | — | (214.3 | ) | |||||||||||
Change in overdraft balances and other | — | 0.6 | 130.8 | — | 131.4 | ||||||||||||||
Net intercompany financing activity | — | (142.4 | ) | (137.6 | ) | 280.0 | — | ||||||||||||
Net cash provided by (used in) financing activities | (170.6 | ) | (268.7 | ) | (167.9 | ) | 284.1 | (323.1 | ) | ||||||||||
CASH AND CASH EQUIVALENTS: | |||||||||||||||||||
Net increase (decrease) in cash and cash equivalents | (13.2 | ) | 12.9 | 59.1 | — | 58.8 | |||||||||||||
Effect of foreign exchange rate changes on cash and cash equivalents | — | 2.0 | 2.9 | — | 4.9 | ||||||||||||||
Balance at beginning of year | 90.6 | 248.7 | 103.0 | — | 442.3 | ||||||||||||||
Balance at end of period | $ | 77.4 | $ | 263.6 | $ | 165.0 | $ | — | $ | 506.0 |
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