MOLSON COORS BREWING CO, 10-Q filed on 8/6/2014
Quarterly Report
Document and Entity Information Document
6 Months Ended
Jun. 30, 2014
Aug. 1, 2014
Common Class A [Member]
Aug. 1, 2014
Common Class B [Member]
Aug. 1, 2014
Class A Exchangeable Shares [Member]
Aug. 1, 2014
Class B Exchangeable Shares [Member]
Entity Information [Line Items]
 
 
 
 
 
Entity Registrant Name
MOLSON COORS BREWING CO 
 
 
 
 
Trading Symbol
tap 
 
 
 
 
Entity Central Index Key
0000024545 
 
 
 
 
Document Type
10-Q 
 
 
 
 
Document Period End Date
Jun. 30, 2014 
 
 
 
 
Document Fiscal Year Focus
2014 
 
 
 
 
Document Fiscal Period Focus
Q2 
 
 
 
 
Current Fiscal Year End Date
--12-31 
 
 
 
 
Amendment Flag
false 
 
 
 
 
Entity Filer Category
Large Accelerated Filer 
 
 
 
 
Entity Common Stock, Shares Outstanding
 
2,556,894 
160,798,376 
 
 
Entity Exchangeable, Shares Outstanding
 
 
 
2,896,939 
18,846,136 
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (USD $)
In Millions, except Per Share data, unless otherwise specified
3 Months Ended 6 Months Ended
Jun. 30, 2014
Jun. 29, 2013
Jun. 30, 2014
Jun. 29, 2013
Sales
$ 1,685.9 
$ 1,659.7 
$ 2,864.2 
$ 2,844.5 
Excise taxes
(497.4)
(481.7)
(859.7)
(838.0)
Net sales
1,188.5 
1,178.0 
2,004.5 
2,006.5 
Cost of goods sold
(683.3)
(684.1)
(1,206.5)
(1,231.2)
Gross profit
505.2 
493.9 
798.0 
775.3 
Marketing, general and administrative expenses
(327.8)
(319.5)
(591.7)
(613.4)
Special items, net
(2.7)
(1.3)
49.8 
(2.8)
Equity income in MillerCoors
190.1 
172.6 
312.9 
290.0 
Operating income (loss)
364.8 
345.7 
569.0 
449.1 
Interest income (expense), net
(36.2)
(41.2)
(71.6)
(116.1)
Other income (expense), net
0.7 
(7.3)
1.5 
(3.0)
Income (loss) from continuing operations before income taxes
329.3 
297.2 1
498.9 
330.0 1
Income tax benefit (expense)
(36.4)
(30.0)
(41.2)
(32.0)
Net Income (loss) from continuing operations
292.9 
267.2 
457.7 
298.0 
Income (loss) from discontinued operations, net of tax
0.2 
1.7 1
(1.7)
0.8 1
Net income (loss) including noncontrolling interests
293.1 
268.9 
456.0 
298.8 
Net (income) loss attributable to noncontrolling interests
(2.2)
(1.6)
(1.7)
(3.0)
Net income (loss) attributable to Molson Coors Brewing Company
290.9 
267.3 1
454.3 
295.8 1
Basic net income (loss) attributable to Molson Coors Brewing Company per share:
 
 
 
 
From continuing operations (in dollars per share)
$ 1.57 2
$ 1.45 1 2
$ 2.47 2
$ 1.62 1 2
From discontinued operations (in dollars per share)
$ 0.00 2
$ 0.01 1 2
$ (0.01)2
$ 0.00 1 2
Basic net income (loss) attributable to Molson Coors Brewing Company per share
$ 1.57 2
$ 1.46 1 2
$ 2.46 2
$ 1.62 1 2
Diluted net income (loss) attributable to Molson Coors Brewing Company per share:
 
 
 
 
From continuing operations (in dollars per share)
$ 1.56 2
$ 1.44 1 2
$ 2.46 2
$ 1.61 1 2
From discontinued operations (in dollars per share)
$ 0.00 2
$ 0.01 1 2
$ (0.01)2
$ 0.00 1 2
Diluted net income (loss) attributable to Molson Coors Brewing Company per share
$ 1.56 2
$ 1.45 1 2
$ 2.45 2
$ 1.61 1 2
Weighted average shares - basic (in shares)
184.8 
182.9 
184.5 
182.3 
Weighted average shares - diluted (in shares)
185.9 
184.1 
185.7 
183.5 
Amounts attributable to Molson Coors Brewing Company
 
 
 
 
Net income (loss) from continuing operations
290.7 
265.6 1
456.0 
295.0 1
Income (loss) from discontinued operations, net of tax
0.2 
1.7 1
(1.7)
0.8 1
Net income (loss) attributable to Molson Coors Brewing Company
$ 290.9 
$ 267.3 1
$ 454.3 
$ 295.8 1
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) (USD $)
In Millions, unless otherwise specified
3 Months Ended 6 Months Ended
Jun. 30, 2014
Jun. 29, 2013
Jun. 30, 2014
Jun. 29, 2013
Net income (loss) including noncontrolling interests
$ 293.1 
$ 268.9 
$ 456.0 
$ 298.8 
Other comprehensive income (loss), net of tax:
 
 
 
 
Foreign currency translation adjustments
160.1 
(113.6)
(21.9)
(394.3)
Unrealized gain (loss) on derivative instruments
(10.6)
19.6 
3.9 
32.7 
Reclassification of derivative (gain) loss to income
(2.4)
(0.8)
(5.6)
(0.7)
Pension and other postretirement benefit adjustments
(2.4)
Amortization of net prior service (benefit) cost and net actuarial (gain) loss to income
7.8 
13.3 
15.4 
23.9 
Ownership share of unconsolidated subsidiaries' other comprehensive income (loss)
7.6 
(2.8)
9.2 
(9.5)
Total other comprehensive income (loss), net of tax
162.5 
(86.7)
1.0 
(347.9)
Comprehensive income (loss)
455.6 
182.2 
457.0 
(49.1)
Comprehensive (income) loss attributable to noncontrolling interests
(2.2)
(1.6)
(1.7)
(3.0)
Comprehensive income (loss) attributable to Molson Coors Brewing Company
$ 453.4 
$ 180.6 
$ 455.3 
$ (52.1)
CONDENSED CONSOLIDATED BALANCE SHEETS (USD $)
In Millions, unless otherwise specified
Jun. 30, 2014
Dec. 31, 2013
Current assets:
 
 
Cash and cash equivalents
$ 506.0 
$ 442.3 
Accounts receivable, net
730.9 
603.6 
Other receivables, net
141.5 
124.4 
Inventories:
 
 
Finished, net
189.0 
133.2 
In process
28.2 
23.3 
Raw materials
42.4 
36.9 
Packaging materials, net
17.7 
11.9 
Total inventories, net
277.3 
205.3 
Other current assets, net
119.3 
111.7 
Deferred tax assets
25.3 
50.4 
Total current assets
1,800.3 
1,537.7 
Properties, net
1,974.0 
1,970.1 
Goodwill
2,440.7 
2,418.7 
Other intangibles, net
6,777.2 
6,825.1 
Investment in MillerCoors
2,598.6 
2,506.5 
Deferred tax assets
16.5 
38.3 
Notes receivable, net
23.9 
23.6 
Other assets
241.8 
260.1 
Total assets
15,873.0 
15,580.1 
Current liabilities :
 
 
Accounts payable and other current liabilities
1,514.7 
1,429.6 
Deferred tax liabilities
138.1 
138.1 
Current portion of long-term debt and short-term borrowings
451.6 
586.9 
Discontinued operations
7.3 
6.8 
Total current liabilities
2,111.7 
2,161.4 
Long-term debt
3,208.6 
3,213.0 
Pension and post-retirement benefits
443.3 
462.6 
Deferred tax liabilities
977.4 
911.4 
Unrecognized tax benefits
61.7 
107.1 
Other liabilities
66.7 
77.2 
Discontinued operations
18.5 
17.3 
Total liabilities
6,887.9 
6,950.0 
Commitments and contingencies (Note 16)
   
   
Capital stock:
 
 
Preferred stock, non-voting, no par value (authorized: 25.0 shares; none issued)
Paid-in capital
3,790.3 
3,747.6 
Retained earnings
4,517.1 
4,199.5 
Accumulated other comprehensive income (loss)
155.9 
154.9 
Class B common stock held in treasury at cost (7.5 shares and 7.5 shares, respectively)
(321.1)
(321.1)
Total Molson Coors Brewing Company stockholders' equity
8,962.0 
8,605.2 
Noncontrolling interests
23.1 
24.9 
Total equity
8,985.1 
8,630.1 
Total liabilities and equity
15,873.0 
15,580.1 
Class A common stock, voting [Member]
 
 
Capital stock:
 
 
Common stock
Class B common stock, non-voting [Member]
 
 
Capital stock:
 
 
Common stock
1.7 
1.7 
Class A Exchangeable Shares [Member]
 
 
Capital stock:
 
 
Exchangeable shares
108.5 
108.5 
Class B Exchangeable Shares [Member]
 
 
Capital stock:
 
 
Exchangeable shares
$ 709.6 
$ 714.1 
CONSOLIDATED BALANCE SHEETS (PARENTHETICALS) (USD $)
In Millions, except Per Share data, unless otherwise specified
Jun. 30, 2014
Dec. 31, 2013
Preferred Stock, Non-voting, No Par Value
$ 0 
$ 0 
Preferred Stock, Shares Authorized
25.0 
25.0 
Preferred Stock, Shares Issued
Treasury Stock, Shares
7.5 
7.5 
Common Class A [Member]
 
 
Common Stock, Par or Stated Value Per Share
$ 0.01 
$ 0.01 
Common Stock, Shares Authorized
500.0 
500.0 
Common Stock, Shares, Issued
2.6 
2.6 
Common Stock, Shares, Outstanding
2.6 
2.6 
Common Class B [Member]
 
 
Common Stock, Par or Stated Value Per Share
$ 0.01 
$ 0.01 
Common Stock, Shares Authorized
500.0 
500.0 
Common Stock, Shares, Issued
168.2 
167.2 
Class A Exchangeable Shares [Member]
 
 
Exchangeable Stock, No Par Value
$ 0 
$ 0 
Exchangeable Stock, Shares Issued
2.9 
2.9 
Exchangeable Stock, Shares Outstanding
2.9 
2.9 
Class B Exchangeable Shares [Member]
 
 
Exchangeable Stock, No Par Value
$ 0 
$ 0 
Exchangeable Stock, Shares Issued
18.8 
19.0 
Exchangeable Stock, Shares Outstanding
18.8 
19.0 
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (USD $)
In Millions, unless otherwise specified
6 Months Ended
Jun. 30, 2014
Jun. 29, 2013
Proceeds from sale of business
$ 0 
$ 2.0 
Investment in and advances to an unconsolidated affiliate
(2.8)
Cash flows from operating activities:
 
 
Net income (loss) including noncontrolling interests
456.0 
298.8 
Adjustments to reconcile net income to net cash provided by operating activities:
 
 
Depreciation and amortization
158.4 
160.9 
Amortization of debt issuance costs and discounts
4.2 
14.2 
Share-based compensation
12.1 
15.4 
Loss (gain) sale or impairment of properties and intangibles
3.0 
6.3 
Deferred income taxes
9.8 
13.1 
Equity income in MillerCoors
(312.9)
(290.0)
Distributions from MillerCoors
312.9 
290.0 
Equity in net income of other unconsolidated affiliates
(2.7)
(7.8)
Distributions from other unconsolidated affiliates
11.1 
13.0 
Excess tax benefits from share-based compensation
(3.2)
(5.4)
Unrealized (gain) loss on foreign currency fluctuations and derivative instruments, net
(3.2)
28.9 
Change in current assets and liabilities and other
(71.2)
54.4 
Net cash provided by operating activities
576.0 
591.0 
Cash flows from investing activities:
 
 
(Gain) loss from discontinued operations
1.7 
(0.8)
Additions to properties
(126.4)
(149.7)
Proceeds from sales of properties and other assets
4.1 
4.9 
Investment in MillerCoors
(764.4)
(615.3)
Return of capital from MillerCoors
691.9 
515.2 
Loan repayments
4.0 
4.5 
Loan advances
(3.3)
(3.7)
Net cash used in investing activities
(194.1)
(244.9)
Cash flows from financing activities:
 
 
Exercise of stock options under equity compensation plans
27.7 
63.1 
Excess tax benefits from share-based compensation
3.2 
5.4 
Dividends paid
(136.7)
(116.8)
Dividends paid to noncontrolling interest holders
2.4 
1.2 
Payments for purchase of noncontrolling interest
(0.4)
(0.2)
Debt issuance costs
1.8 
0.2 
Payments on long-term debt and capital lease obligations
(62.2)
(52.4)
Proceeds from short-term borrowings
20.9 
9.3 
Payments on short-term borrowings
(23.3)
(15.1)
Payments on settlement of derivative instruments
(65.2)
(35.1)
Net proceeds from (payments on) revolving credit facilities and commercial paper
(214.3)
(2.9)
Change in overdraft balances and other
131.4 
2.0 
Net cash provided by (used in) financing activities
(323.1)
(144.1)
Cash and cash equivalents:
 
 
Net increase (decrease) in cash and cash equivalents
58.8 
202.0 
Effect of foreign exchange rate changes on cash and cash equivalents
4.9 
(24.4)
Balance at beginning of year
442.3 
624.0 
Balance at end of period
506.0 
801.6 
Options and Sosars [Member]
 
 
Cash flows from financing activities:
 
 
Exercise of stock options under equity compensation plans
$ 27.7 
$ 63.1 
Basis of Presentation and Summary of Significant Accounting Policies
Basis of Presentation and Summary of Significant Accounting Policies
Basis of Presentation and Summary of Significant Accounting Policies
Unless otherwise noted in this report, any description of "we", "us" or "our" includes Molson Coors Brewing Company ("MCBC" or the "Company"), principally a holding company, and its operating and non-operating subsidiaries included within our reporting segments and Corporate. Our reporting segments include: Molson Coors Canada ("MCC" or Canada segment), operating in Canada; MillerCoors LLC ("MillerCoors" or U.S. segment), which is accounted for by us under the equity method of accounting, operating in the United States ("U.S."); Molson Coors Europe (Europe segment), operating in Bosnia-Herzegovina, Bulgaria, Croatia, Czech Republic, Hungary, Montenegro, Republic of Ireland, Romania, Serbia, Slovakia and the United Kingdom ("U.K."); and Molson Coors International ("MCI"), operating in various other countries.
References to Central Europe reflect our operations in Bosnia-Herzegovina, Bulgaria, Croatia, Czech Republic, Hungary, Montenegro, Romania, Serbia and Slovakia, as a result of our acquisition (the "Acquisition") of StarBev Holdings S.à r.l. ("StarBev") from StarBev L.P. (the "Seller") on June 15, 2012, and the results of these operations are included within our Europe segment.
Unless otherwise indicated, information in this report is presented in U.S. dollars ("USD" or "$") and comparisons are to comparable prior periods as noted below.
The accompanying unaudited condensed consolidated interim financial statements reflect all adjustments which are necessary for a fair statement of the financial position, results of operations and cash flows for the periods presented in accordance with accounting principles generally accepted in the United States of America ("U.S. GAAP"). Such unaudited interim condensed consolidated financial statements have been prepared in accordance with the instructions to Form 10-Q pursuant to the rules and regulations of the SEC. Certain information and footnote disclosures normally included in financial statements prepared in accordance with U.S. GAAP have been condensed or omitted pursuant to such rules and regulations.
These unaudited condensed consolidated interim financial statements should be read in conjunction with our Annual Report on Form 10-K for the year ended December 31, 2013 ("Annual Report") and have been prepared on a consistent basis with the accounting policies described in Note 1 of the Notes to the Audited Consolidated Financial Statements ("Notes") included in our Annual Report. Our accounting policies did not change in the first half of 2014, with the exception of a change to our policy for recognizing advertising expenses in interim periods as discussed below. Additionally, in order to provide further clarity around our policy regarding the classification of special items in the unaudited condensed consolidated statements of operations, we have expanded our related disclosure as reflected below.
Special Items
Our special items represent charges incurred or benefits realized that either we do not believe to be indicative of our core operations, or we believe are significant to our current operating results warranting separate classification; specifically, such items are considered to be one of the following:
infrequent or unusual items,
impairment or asset abandonment-related losses,
restructuring charges and other atypical employee-related costs, or
fees on termination of significant operating agreements and gains (losses) on disposal of investments.

The items classified as special items are not necessarily non-recurring, however, they are deemed to be incremental to income earned or costs incurred by the Company in conducting normal operations, and therefore are presented separately from other components of operating income.

Our Fiscal Year

On November 14, 2013, our Board of Directors approved a resolution to change MCBC's fiscal year from a 52/53 week fiscal year to a calendar year. As such, our 2013 fiscal year was extended from December 28, 2013, to December 31, 2013, with subsequent fiscal years beginning on January 1 and ending on December 31 of each year. Beginning January 1, 2014, quarterly results reflect the three month periods ending March 31, June 30, September 30, and December 31. This change aligned our fiscal year and interim reporting periods with our Central Europe business and MillerCoors, which were already following a monthly fiscal reporting calendar. Unless otherwise indicated, and with the exception of the Central Europe business and MillerCoors, the second quarter of 2013 and the three months ended June 29, 2013, refer to the thirteen weeks ended June 29, 2013. The first half of 2013 and the six months ended June 29, 2013, refer to the twenty-six weeks ended June 29, 2013. The second quarter and first half of 2014 refer to the three and six months ended June 30, 2014, respectively. Fiscal year 2014 refers to the 12 months ending December 31, 2014, and fiscal year 2013 refers to the period from December 30, 2012, to December 31, 2013. The impact of the additional days in fiscal year 2013 is immaterial to the unaudited condensed consolidated financial statements.
The results of operations for the three and six months ended June 30, 2014, are not necessarily indicative of the results that may be achieved for the full fiscal year.
Change in Interim Period Accounting for Advertising Expenses

In previous years' interim periods, including the quarterly periods within fiscal year 2013, we recognized advertising costs in expense during the fiscal year based on the proportion of sales volumes for the interim period in relation to the estimated annual sales volumes. U.S. GAAP permits the allocation of advertising costs across interim periods within a fiscal year when future periods benefit from the expenditure. Advertising expenses were not deferred from one fiscal year to the next. Effective beginning the first quarter of fiscal year 2014, we changed our method of accounting for advertising expenses for interim periods such that advertising expense is now recognized as incurred. We adopted this change as a result of management’s belief that the new method is preferable and results in a more objective measure of quarterly expense that will better support planning and resource allocation decisions by management, results in improved financial statements for investor analysis, and further aligns our treatment with that of our U.S. operations within MillerCoors. The new policy of expensing advertising costs as incurred additionally eliminates the uncertainty in estimating overall expected sales volumes, advertising expenses, and the benefit period of the advertising on an interim basis, and conforms our interim accounting policy with that used to prepare the annual financial statements. The change has been applied retrospectively to all prior interim periods presented. The quarterly impact of the change in accounting policy on marketing, general and administrative expenses and the associated impact on income tax expense, as well as the impact to certain subtotals and diluted earnings per share within our unaudited condensed consolidated statement of operations, is as follows:
 
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

As noted above, under our historical treatment, advertising expenses were not deferred from one fiscal year to the next. Therefore, the change in interim accounting had no impact on full year consolidated results.

The following table shows the impact to income (loss) from continuing operations before income taxes by segment as a result of the change in accounting policy for advertising expense. The full impact of this change in presentation is reflected within marketing, general and administrative expenses.
Income (loss) from continuing operations before income taxes by segment:
 
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
)

As noted above, under our historical treatment, advertising expenses were not deferred from one fiscal year to the next. Therefore, the change in interim accounting had no impact on full year segment results.
Foreign Currency Translation Tax Adjustment
During the third quarter of 2013, we identified that we had incorrectly recorded tax adjustments related to certain foreign currency movements in the financial statements for both the first and second quarters of 2013 that misstated non-current deferred tax assets, accumulated other comprehensive income (loss), and comprehensive income by immaterial amounts. We have revised the foreign currency translation adjustments, net of tax, included in other comprehensive income (loss) and comprehensive income (loss) in the unaudited condensed consolidated statements of comprehensive income (loss) for the three and six months ended June 29, 2013. These errors were corrected in the third quarter of 2013 and therefore had no impact on the unaudited condensed consolidated balance sheet as of December 31, 2013. Note that the as adjusted amounts below also reflect the adjustments related to the change in interim accounting for advertising expense as discussed above.
 
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
)

Unrecognized Tax Benefit Adjustments
During the second quarter of 2014, we identified that we had incorrectly omitted the recognition of a liability for specific uncertain tax positions related to fiscal year 2010 that resulted in an immaterial misstatement of unrecognized tax benefits and retained earnings within the consolidated balance sheets at December 31, 2013, and December 29, 2012, included in our Annual Report. We determined the impact of the correction of this error to be too significant to record within our second quarter 2014 results and, therefore, have revised our historical balance sheets accordingly. To correct for this error, we have revised the unrecognized tax benefits and retained earnings in the unaudited condensed consolidated balance sheet as of December 31, 2013, included herein. This correction resulted in an increase in the current portion of unrecognized tax benefits included within accounts payable and other current liabilities of $19.3 million, an increase in noncurrent unrecognized tax benefits of $14.4 million and a corresponding decrease to retained earnings of $33.7 million. These unrecognized tax benefits remain in our unaudited condensed consolidated balance sheet as of June 30, 2014. These items relate to tax years that are currently open, and amounts may differ from those to be determined upon closing of the positions.
New Accounting Pronouncements
New Accounting Pronouncements
New Accounting Pronouncements
Adoption of New Accounting Pronouncements
Joint and Several Liability Arrangements
In February 2013, the FASB issued authoritative guidance for the recognition, measurement and disclosure of obligations resulting from joint and several liability arrangements for which the total amount of the obligation is fixed at the reporting date. The guidance was effective for our quarter ended March 31, 2014. The adoption of this guidance did not have an impact on our financial position or results from operations.
Cumulative Translation Adjustment
In March 2013, the FASB issued authoritative guidance on a parent's accounting for the cumulative translation adjustment upon derecognition of certain subsidiaries or groups of assets within a foreign entity or of an investment in a foreign entity. This update also resolves the diversity in practice for the treatment of business combinations achieved in stages (sometimes also referred to as step acquisitions) involving a foreign entity. The guidance was effective for our quarter ended March 31, 2014. The adoption of this guidance did not have an impact on our financial position or results from operations.
Liquidation Basis of Accounting
In April 2013, the FASB issued authoritative guidance to clarify when it is appropriate to apply the liquidation basis of accounting. Additionally, the update provides guidance for recognition and measurement of assets and liabilities and requirements for financial statements prepared using the liquidation basis of accounting. Under the amendment, entities are required to prepare their financial statements under the liquidation basis of accounting when a liquidation becomes imminent. The guidance was effective for our quarter ended March 31, 2014. The adoption of this guidance did not have an impact on our financial position or results from operations.
Presentation of Unrecognized Tax Benefits
In July 2013, the FASB issued authoritative guidance related to the presentation of unrecognized tax benefits. The update requires that the entity present an unrecognized tax benefit, or a portion of an unrecognized tax benefit, as a reduction to a deferred tax asset for a net operating loss carryforward or a tax credit carryforward in the statement of financial position. The guidance does not apply to the extent that a net operating loss carryforward or tax credit carryforward at the reporting date is not available under the tax law of the applicable jurisdiction to settle any additional income taxes that would result from the disallowance of a tax position. The guidance was effective for our quarter ended March 31, 2014. As a result of adopting this guidance, we have presented deferred tax assets net of unrecognized tax benefits, as appropriate, in the unaudited condensed consolidated balance sheets. The adoption of this guidance impacted the classification of our outstanding unrecognized tax benefits and resulted in a reclassification of $37.8 million from the unrecognized tax benefits line item within the unaudited condensed consolidated balance sheet upon adoption in the first quarter of 2014.
New Accounting Pronouncements Not Yet Adopted
Reporting Discontinued Operations and Disclosures of Disposals of Components of an Entity
In April 2014, the FASB issued authoritative guidance related to reporting discontinued operations and disclosures of disposals of components of an entity. The update limits discontinued operations reporting to disposals of components of an entity that represent strategic shifts that have (or will have) a major effect on an entity's operations and financial results. This update requires expanded disclosures related to assets, liabilities, revenues and expenses of discontinued operations. This update also requires the disclosure of pretax profit or loss and the financial effects of significant disposals that do not qualify for discontinued operations reporting. The guidance is effective for annual reporting periods beginning on or after December 15, 2014, and interim reporting periods thereafter. We do not anticipate that this guidance will have an impact on our financial position or results of operations.
Revenue Recognition
In May 2014, the FASB issued authoritative guidance related to new accounting requirements for the recognition of revenue from contracts with customers. The core principle of the guidance is that an entity should recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled to in exchange for the goods or services. The requirements of the new standard are effective for the annual reporting periods beginning after December 15, 2016, and interim periods within those annual periods. We are currently evaluating the potential impact on our financial position and results of operations upon adoption of this guidance.
Share-Based Payments
In June 2014, the FASB issued authoritative guidance related to share-based payments when the terms of an award provide that a performance target could be achieved after the requisite service period. The amendments require that a performance target that affects vesting and that could be achieved after the requisite service period be treated as a performance condition. The requirements of the new standard are effective for the annual reporting periods beginning after December 15, 2015, and interim periods within those annual periods. We do not anticipate that this guidance will have a material impact on our financial position or results of operations.
Segment Reporting
Segment Reporting
Segment Reporting
Our reporting segments are based on the key geographic regions in which we operate, which are the basis on which our chief operating decision maker evaluates the performance of the business. Our reporting segments consist of Canada, the U.S., Europe and MCI. Corporate is not a segment and primarily includes interest and certain other general and administrative costs that are not allocated to any of the operating segments. No single customer accounted for more than 10% of our consolidated or segmented sales for the three and six months ended June 30, 2014, and June 29, 2013, respectively. Net sales represent sales to third-party external customers. Inter-segment sales revenues and income (loss) from continuing operations before income taxes, other than those to MillerCoors (see Note 4, "Investments" for additional detail), are insignificant and eliminated in consolidation.
The following table presents net sales by segment:
 
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.
The following table presents income (loss) from continuing operations before income taxes by 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.
The following table presents total assets by segment:
 
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

Investments
Investments
Investments
Our investments include both equity method and consolidated investments. Those entities identified as variable interest entities ("VIEs") have been evaluated to determine whether we are the primary beneficiary. The VIEs included under "Consolidated VIEs" below are those for which we have concluded that we are the primary beneficiary and accordingly, consolidate these entities. None of our consolidated VIEs held debt as of June 30, 2014, or December 31, 2013. We have not provided any financial support to any of our VIEs during the quarter that we were not previously contractually obligated to provide. Amounts due to and due from our equity method investments are recorded as affiliate accounts payable and affiliate accounts receivable.
Authoritative guidance related to the consolidation of VIEs requires that we continually reassess whether we are the primary beneficiary of VIEs in which we have an interest. As such, the conclusion regarding the primary beneficiary status is subject to change and we continually evaluate circumstances that could require consolidation or deconsolidation. As of June 30, 2014, and December 31, 2013, our consolidated VIEs are Cobra Beer Partnership, Ltd. ("Cobra U.K.") and Grolsch. Our unconsolidated VIEs are Brewers' Retail Inc. ("BRI"), Brewers' Distributor Ltd. ("BDL") and Molson Modelo Imports L.P. ("MMI"). See further discussion below.
Equity Investments
Investment in MillerCoors
Summarized financial information for MillerCoors is as follows:
Condensed Balance Sheets
 
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

The following represents our proportionate share in MillerCoors' equity and reconciliation to our investment in MillerCoors:
 
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.
Results of Operations
 
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


The following represents our proportionate share in net income attributable to MillerCoors reported under the equity method:
 
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.
The following table summarizes our transactions with 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, and December 31, 2013, we had $8.1 million and $4.4 million of net payables due to MillerCoors, respectively.
Consolidated VIEs
The following summarizes the assets and liabilities of our consolidated VIEs (including noncontrolling interests):
 
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


Termination of MMI Operations
On November 5, 2013, Anheuser-Busch Inbev ("ABI") and MCBC entered into an agreement providing for the accelerated termination of MMI, a 50% - 50% joint venture with Grupo Modelo S.A.B. de C.V. ("Modelo"), which provided for the import, distribution, and marketing of the Modelo beer brand portfolio across all Canadian provinces and territories. The joint venture, accounted for under the equity method of accounting, was originally a 10 year agreement ending January 1, 2018. In June 2013, ABI completed its combination with Modelo, including Modelo’s interest in MMI. Following negotiations with ABI, MCC consented to change the effective termination date of the agreement from January 1, 2018, to February 28, 2014, upon successful close and completion of the transition period, at which time MCC would receive payment from Modelo for the early termination of the original agreement. In conjunction with these negotiations, ABI also agreed that we will continue to represent the Modelo brands in the U.K. and Japan through the end of 2014.
The transition period was successfully completed on February 28, 2014, at which time we recognized income of $63.2 million (CAD 70.0 million) within special items, reflective of the agreed upon payment received from Modelo. Additionally we recorded a charge of $4.9 million representing the accelerated amortization of the remaining carrying value of our definite-lived intangible asset associated with the agreement. In accordance with the termination agreement, MMI continued to operate in its historical capacity through the end of the transition period. Effective end of day on February 28, 2014, MMI ceased all operations and will be dissolved during the second half of 2014 upon final agreement with ABI on the distribution amount of the joint venture's remaining net assets. As a result, our first half of 2014 results reflect our proportionate ownership interest of the MMI activity during the first quarter of 2014 through end of day February 28, 2014. Under the MMI arrangement, we recognized equity earnings within cost of goods sold of $0.7 million during the six months ended June 30, 2014, and $4.5 million and $5.1 million during the three and six months ended June 29, 2013, respectively. In addition, during the six months ended June 30, 2014, and three and six months ended June 29, 2013, MCC recognized marketing and administrative cost recoveries related to the promotion, sale and distribution of Modelo products under our agency and services agreement with MMI of $1.1 million, $3.3 million and $5.7 million, respectively. These cost recoveries are recorded within marketing, general and administrative expenses. As of June 30, 2014, and December 31, 2013, our unaudited condensed consolidated balance sheet includes our investment in MMI of $10.6 million and $21.2 million, respectively, and an affiliate net payable to MMI of $4.7 million and $13.8 million, respectively.
In accordance with the early termination agreement, the book value of the joint venture's net assets is required to be distributed to the respective joint venture partners for the owners' proportionate ownership interest at the end of the transition period, which we expect to occur in the second half of 2014. Concurrently, we will derecognize our equity investment within other non-current assets and recognize a gain (loss), if any, within special items resulting from the excess (deficit) of the total proceeds, consisting of our proportionate ownership interest in the book value of the joint venture’s assets, over our equity investment and joint venture related net asset balances upon final distribution.
Share-Based Payments
Share-Based Payments
Share-Based Payments
During the six months ended June 30, 2014, and June 29, 2013, we recognized share-based compensation expense related to the following Class B common stock awards to certain directors, officers and other eligible employees, pursuant to the Molson Coors Brewing Company Incentive Compensation Plan ("Incentive Compensation Plan"): restricted stock units ("RSU"), deferred stock units ("DSU"), performance share units ("PSU"), performance units ("PU") and stock options. The settlement amount of the PSUs is determined based on market and performance metrics, which include our total shareholder return performance relative to the S&P 500 and specified internal performance metrics designed to drive greater shareholder return. PSU compensation expense is based on a fair value assigned to the market metric using a Monte Carlo model, which will remain constant throughout the vesting period of three years, and a performance multiplier, which will vary due to changing estimates of the performance metric condition.
The following table summarizes share-based compensation expense:
 
Three Months Ended
 
Six Months Ended
 
June 30, 2014
 
June 29, 2013
 
June 30, 2014
 
June 29, 2013
 
(In millions)
Pretax compensation expense
$
3.8

 
$
4.3

 
$
12.1

 
$
15.4

Tax benefit
(1.2
)
 
(1.1
)
 
(3.9
)
 
(4.5
)
After-tax compensation expense
$
2.6

 
$
3.2

 
$
8.2

 
$
10.9

As of June 30, 2014, there was $24.7 million of total unrecognized compensation cost from all share-based compensation arrangements granted under the Incentive Compensation Plan, related to unvested shares. This compensation expense is expected to be recognized over a weighted-average period of 1.4 years.
The following table represents the summary of stock options and stock-only stock appreciation rights ("SOSAR") outstanding as of June 30, 2014, and the activity during the six months ended June 30, 2014:
 
Shares outstanding
 
Weighted-average
exercise price per
share
 
Weighted-average
remaining
contractual life
(years)
 
Aggregate
intrinsic value
 
(In millions, except per share amounts and years)
Outstanding as of December 31, 2013
3.5
 
$43.41
 
4.57
 
$
45.1

Granted
0.2
 
$58.24
 
 
 
 
Exercised
(0.9)
 
$43.50
 
 
 
 
Forfeited
(0.1)
 
$44.24
 
 
 
 
Outstanding as of June 30, 2014
2.7
 
$44.28
 
4.75
 
$
79.9

Exercisable at June 30, 2014
2.3
 
$43.34
 
4.00
 
$
69.5

The total intrinsic values of stock options exercised during the six months ended June 30, 2014, and June 29, 2013, were $15.0 million and $23.5 million, respectively. During the six months ended June 30, 2014, and June 29, 2013, cash received from stock option exercises was $27.7 million and $63.1 million, respectively, and the total excess tax benefit from these stock option exercises and other awards was $3.2 million and $5.4 million, respectively.
The following table represents non-vested RSUs, DSUs, PSUs and PUs as of June 30, 2014, and the activity during the six months ended June 30, 2014:
 
RSUs and DSUs
 
PUs
 
PSUs
 
Units
 
Weighted-average
grant date fair value
per unit
 
Units
 
Weighted-average
fair value
per unit
 
Units
 
Weighted-average
grant date fair value
per unit
 
(In millions, except per unit amounts)
Non-vested as of December 31, 2013
0.7

 
$42.08
 
1.0

 
$2.87
 
0.2

 
$43.10
Granted
0.2

 
$59.02
 

 
$—
 
0.2

 
$58.69
Vested
(0.2
)
 
$41.01
 
(0.5
)
 
$6.12
 

 
$—
Forfeited

 
$—
 

 
$—
 

 
$—
Non-vested as of June 30, 2014
0.7

 
$47.42
 
0.5

 
$0.45
 
0.4

 
$50.49
The weighted-average fair value per unit for the non-vested PSUs is $46.10 as of June 30, 2014.
The fair value of each option granted in the first half of 2014 and 2013 was determined on the date of grant using the Black-Scholes option-pricing model with the following weighted-average assumptions:
 
Six Months Ended
 
June 30, 2014
 
June 29, 2013
Risk-free interest rate
2.29%
 
1.43%
Dividend yield
2.57%
 
2.88%
Volatility range
22.66%-26.57%
 
22.39%-25.90%
Weighted-average volatility
25.59%
 
25.02%
Expected term (years)
7.5
 
7.7
Weighted-average fair market value
$12.78
 
$8.39
The risk-free interest rates utilized for periods throughout the contractual life of the stock options are based on a zero-coupon U.S. Treasury security yield at the time of grant. Expected volatility is based on a combination of historical and implied volatility of our stock. The expected term of stock options is estimated based upon observations of historical employee option exercise patterns and trends of those employees granted options in the respective year.
The fair value of the market metric for each PSU granted in the first half of 2014 and 2013 was determined on the date of grant using a Monte Carlo model to simulate total shareholder return for MCBC and peer companies with the following weighted-average assumptions:
 
Six Months Ended
 
June 30, 2014
 
June 29, 2013
Risk-free interest rate
0.72%
 
0.33%
Dividend yield
2.57%
 
2.88%
Volatility range
12.45%-72.41%
 
12.18%-69.37%
Weighted-average volatility
21.72%
 
21.13%
Expected term (years)
2.82
 
2.83
Weighted-average fair market value
$58.69
 
$43.10

The risk-free interest rates utilized for periods throughout the expected term of the PSUs are based on a zero-coupon U.S. Treasury security yield at the time of grant. Expected volatility is based on historical volatility of our stock as well as the stock of our peer firms, as shown within the volatility range above, for a period from the grant date consistent with the expected term. The expected term of PSUs is calculated based on the grant date to the end of the performance period.
As of June 30, 2014, there were 7.4 million shares of the Company's Class B common stock available for issuance as awards under the Incentive Compensation Plan.
On July 24, 2014, subsequent to the end of the second quarter of 2014, Peter Swinburn, the Chief Executive Officer and President of the Company, informed the Corporate Secretary and the Board of Directors of the Company his intention to retire as Chief Executive Officer and President of the Company and as a member of the Board effective December 31, 2014. In addition, on July 24, 2014, the Board appointed Mark Hunter as the Company’s Chief Executive Officer and President to replace Mr. Swinburn effective on January 1, 2015. Mr. Hunter currently serves as Chief Executive Officer and President of Molson Coors Europe. Mr. Hunter will also serve as a member of Board effective January 1, 2015. We do not anticipate a significant impact to our results, specifically related to share-based compensation expense, as a result of this change.
Special items
Special Items
Special Items
We have incurred charges or realized benefits that either we do not believe to be indicative of our core operations, or we believe are significant to our current operating results warranting separate classification. As such, we have separately classified these charges (benefits) as special items. The table below summarizes special items recorded by segment:
 
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.
Restructuring Activities
In 2012, we introduced several initiatives focused on increasing our efficiencies and reducing costs across all functions of the business in order to develop a more competitive supply chain and global cost structure. Included in these initiatives is a long-term focus on reducing labor and general overhead costs through restructuring activities. We view these restructuring activities as actions to allow us to meet our long-term growth targets by generating future cost savings within cost of goods sold and general and administrative expenses and include organizational changes that strengthen our business and accelerate efficiencies within our operational structure. As a result of these restructuring activities, we have reduced headcount and consequently recognized severance and other employee-related charges, which we have recorded as special items. As we continually evaluate our cost structure and seek opportunities for further efficiencies and cost savings, we may incur additional restructuring related charges in the future; however, we are unable to estimate the amount of charges at this time.
The accrued restructuring balances represent expected future cash payments required to satisfy the remaining severance obligations to terminated employees, the majority of which we expect to be paid in the next 12-24 months. The table below summarizes the activity in the restructuring accruals by segment:
 
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



Other Income and Expense
Other Income and Expense
Other Income and Expense
The table below summarizes other income and expense:
 
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.
Income Tax
Income Tax
Income Tax
Our effective tax rates for the second quarter of 2014 and 2013 were approximately 11% and 10%, respectively. For the first half of 2014 and 2013, our effective tax rates were approximately 8% and 10%, respectively. The effective tax rates for the second quarter and first half of 2013 have been adjusted to reflect the impact of the change in interim accounting for advertising expenses. See Note 1, "Basis of Presentation and Summary of Significant Accounting Policies" for further discussion. Our effective tax rates were significantly lower than the federal statutory rate of 35% primarily due to lower statutory income tax rates applicable to our Canada and Europe businesses, tax planning strategies, as well as the discrete items further discussed below. The effective tax rate for the three months ended June 30, 2014, increased versus the three months ended June 29, 2013, primarily due to decreased discrete tax benefits recognized in the current year as compared to 2013. Our total net discrete tax benefit was $12.2 million in the second quarter of 2014, which reduced our quarterly effective tax rate by 4 percentage points. In April 2014, we finalized our advanced pricing agreement between the U.S. and Canada tax authorities. The implementation of our new agreement and reversal of the related unrecognized tax benefits resulted in a net discrete income tax benefit of approximately $21 million. Additionally, tax years 2007 and 2008 are now closed in the U.S. following the execution of this agreement and subsequent Internal Revenue Service resolution. This was partially reduced by an immaterial out of period adjustment recorded in the second quarter of 2014 of $8.7 million related to our deferred tax liabilities. This out of period adjustment primarily relates to immaterial errors for the fiscal years 2011, 2012 and 2013 and is unrelated to the unrecognized tax benefit adjustment associated with the 2010 fiscal year further discussed below.

Our tax rate is volatile and may move up or down with changes in, among other things, the amount and source of income or loss, our ability to utilize foreign tax credits, changes in tax laws, and the movement of liabilities established for uncertain tax positions as statutes of limitations expire or positions are otherwise effectively settled. There are proposed or pending tax law changes in various jurisdictions that, if enacted, may have an impact on our effective tax rate.
During the second quarter of 2014, we identified that we had incorrectly omitted uncertain tax positions related to fiscal year 2010 that resulted in an immaterial misstatement of unrecognized tax benefits and retained earnings within the consolidated balance sheets included in our Annual Report. We have revised our current presentation of these amounts to correct for this error, which resulted in an increase in current unrecognized tax benefits of $19.3 million and noncurrent unrecognized tax benefits of $14.4 million as of December 31, 2013. These items relate to tax years that are currently open and amounts may differ from those to be determined upon closing of the positions. See Note 1, "Basis of Presentation and Summary of Significant Accounting Policies" for further information.
As of June 30, 2014, and December 31, 2013, we had unrecognized tax benefits including interest, penalties and offsetting positions of $81.1 million and $149.6 million, respectively. The allocation of these balances between current and noncurrent has not changed materially since December 31, 2013. The decrease to our unrecognized tax benefits on our unaudited condensed consolidated balance sheets from December 31, 2013, to June 30, 2014, was primarily due to the previously discussed favorable resolution of unrecognized tax positions and the reclassification of certain unrecognized tax benefits as a result of the adoption of the recently issued guidance
Earnings per Share ("EPS")
Earnings per Share ("EPS")
Earnings Per Share
Basic earnings per share ("EPS") was computed using the weighted-average number of shares of common stock outstanding during the period. Diluted EPS includes the additional dilutive effect of our potentially dilutive securities, which includes stock options, stock-only stock appreciation rights ("SOSARs"), restricted stock units ("RSUs"), performance units ("PUs"), performance share units ("PSUs") and deferred stock units ("DSUs"). The dilutive effects of our potentially dilutive securities are calculated using the treasury stock method. The following summarizes the effect of dilutive securities on diluted EPS:
 
Three Months Ended
 
Six Months Ended
 
June 30, 2014
 
June 29, 2013(1)
 
June 30, 2014
 
June 29, 2013(1)
 
(In millions, except per share amounts)
Amounts attributable to MCBC
 
 
 
 
 
 
 
Net income (loss) from continuing operations
$
290.7

 
$
265.6

 
$
456.0

 
$
295.0

Income (loss) from discontinued operations, net of tax
0.2

 
1.7

 
(1.7
)
 
0.8

Net income (loss) attributable to Molson Coors Brewing Company
$
290.9

 
$
267.3

 
$
454.3

 
$
295.8

Weighted-average shares for basic EPS
184.8

 
182.9

 
184.5

 
182.3

Effect of dilutive securities:
 
 
 
 
 
 
 
Stock options and SOSARs
0.7

 
0.7

 
0.6

 
0.7

RSUs, PSUs, PUs and DSUs
0.4

 
0.5

 
0.6

 
0.5

Weighted-average shares for diluted EPS
185.9

 
184.1

 
185.7

 
183.5

Basic net income (loss) attributable to Molson Coors Brewing Company per share(2):
 
 
 
 

 

From continuing operations
$
1.57

 
$
1.45

 
$
2.47

 
$
1.62

From discontinued operations

 
0.01

 
(0.01
)
 

Basic net income (loss) attributable to Molson Coors Brewing Company per share
$
1.57

 
$
1.46

 
$
2.46

 
$
1.62

Diluted net income (loss) attributable to Molson Coors Brewing Company per share(2):
 
 
 
 


 
 
From continuing operations
$
1.56

 
$
1.44

 
$
2.46

 
$
1.61

From discontinued operations

 
0.01

 
(0.01
)
 

Diluted net income (loss) attributable to Molson Coors Brewing Company per share
$
1.56

 
$
1.45

 
$
2.45

 
$
1.61

Dividends declared and paid per share
$
0.37

 
$
0.32

 
$
0.74

 
$
0.64


(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.
(2)
The sum of the quarterly net income per share amounts may not agree to the full year net income per share amounts. We calculate net income per share based on the weighted average number of outstanding shares during the reporting period. The average number of shares fluctuates throughout the year and can therefore produce a full year result that does not agree to the sum of the individual quarters.
The following anti-dilutive securities were excluded from the computation of the effect of dilutive securities on diluted earnings per share:
 
Three Months Ended
 
Six Months Ended
 
June 30, 2014
 
June 29, 2013
 
June 30, 2014
 
June 29, 2013
 
(In millions)
Stock options, SOSARs and RSUs
0.1

 
0.2

 

 
0.2

Total weighted-average anti-dilutive securities
0.1

 
0.2

 

 
0.2


Convertible Notes
In June 2007, we issued $575 million Convertible Senior Notes ("$575 million convertible bonds") due July 2013. On July 30, 2013, these notes matured and were repaid for their face value of $575 million. The required premium payment was settled in cash and entirely offset by the cash proceeds received from the settlement of the call options we purchased in 2007 related to these notes. As a result, these notes and related call options did not impact our shares outstanding. Additionally, the potential impacts of these notes and related call options had no impact on diluted income per share for any period in which they were outstanding. Simultaneously with the issuance of these notes, we issued warrants which began expiring in December 2013 and the final warrants expired February 6, 2014, all of which were out-of-the-money upon settlement. The potential impacts of these warrants had no impact on diluted income per share and were excluded from the computation of the effect of dilutive securities on diluted earnings per share for all periods during which they were outstanding.
In June 2012, we issued a €500 million Zero Coupon Senior Unsecured Convertible Note ("€500 million convertible note"). On August 13, 2013, the embedded put option was exercised and we subsequently settled the note using cash. See Note 11, "Debt" for further discussion. As a result, the €500 million convertible note did not impact our shares outstanding and was excluded from the computation of the effect of diluted securities on diluted earnings per share for all periods presented.
Goodwill and Intangible Assets
Goodwill and Intangible Assets
Goodwill and Intangible Assets
The following summarizes the change in goodwill for the six months ended June 30, 2014:
 
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


The following table presents details of our intangible assets, other than goodwill, as of June 30, 2014:
 
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


The following table presents details of our intangible assets, other than goodwill, as of December 31, 2013:
 
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

The changes in the gross carrying amounts of intangibles from December 31, 2013, to June 30, 2014, are primarily driven by the impact of foreign exchange rates, as a significant amount of intangibles are denominated in foreign currencies. Additionally, upon termination of MMI operations in the first quarter of 2014, we accelerated the amortization of the remaining $4.9 million net carrying value of the related definite-lived intangible asset and wrote-off its gross value of $40.5 million. See Note 4, "Investments" for further discussion.
Based on foreign exchange rates as of June 30, 2014, the estimated future amortization expense of intangible assets is as follows:
Fiscal year
Amount
 
(In millions)
2014 - remaining
$
21.3

2015
$
40.2

2016
$
40.2

2017
$
14.1

2018
$
12.3


Amortization expense of intangible assets was $10.4 million and $11.7 million for the three months ended June 30, 2014, and June 29, 2013, respectively, and $21.0 million and $23.6 million for the six months ended June 30, 2014 and June 29, 2013, respectively. This expense is presented within marketing, general and administrative expenses and excludes the accelerated amortization recognized for the write-off of the intangible asset associated with the termination of MMI operations in the first quarter of 2014. See Note 4, "Investments" for further discussion.
We completed our required 2013 annual goodwill and indefinite-lived intangible impairment testing as of June 30, 2013, the first day of our fiscal year 2013 third quarter, and concluded there were no impairments of goodwill within our Europe, Canada or India reporting units or impairments of our indefinite-lived intangible assets, with the exception of the Jelen and Ostravar brand intangibles as discussed below. We expect to finalize our 2014 annual impairment test in the third quarter of 2014.
Reporting Units and Goodwill
The operations in each of the specific regions within our Canada, Europe and MCI segments are considered components based on the availability of discrete financial information and the regular review by segment management. We have concluded that the components within the Canada and Europe segments each meet the criteria as having similar economic characteristics and therefore have aggregated these components into the Canada and Europe reporting units, respectively. Additionally, we determined that the components within our MCI segment do not meet the criteria for aggregation, and therefore, the operations of our India business constitute a separate reporting unit at the component level.
Our 2013 annual goodwill impairment testing determined that our Europe and Canada reporting units were at risk of failing step one of the goodwill impairment test. Specifically, the fair value of the Europe and Canada reporting units were estimated at approximately 11% and 16% in excess of carrying value, respectively, as of the testing date. The risk in the Europe reporting unit is due to continued adverse impacts of a weak economy in Europe, partially offset by the realized benefits of combining our U.K. and Central Europe businesses. The Canada reporting unit had a marginal improvement over the prior year primarily as a result of incremental anticipated cost savings and improvements to market multiples more than offsetting the continued competitive pressures and challenging macroeconomic conditions in the Canada market.
Indefinite-Lived Intangibles

In 2013, our annual indefinite-lived intangible impairment testing determined that the fair values of the Jelen and Ostravar indefinite-lived brand intangibles within our Europe segment were below their respective carrying values. As a result, we recorded an aggregate impairment charge of $150.9 million within special items in the third quarter of 2013. Additionally, two brands, Ozujsko in Croatia and Branik in Czech Republic, were determined to be at risk of future impairment as a result of discount rate pressures due to country specific macroeconomic risk factors that were more than offset by improved cash flow projections driven by post-acquisition performance and innovations. The Jelen, Ozujsko and Branik brands are, therefore, at risk of future impairment with an aggregate fair value estimated at approximately 1% in excess of their aggregate carrying value as of the June 30, 2013 impairment testing date. As of June 30, 2014, these at-risk intangible assets had a carrying value of $1,302.5 million. Additionally, in conjunction with the brand impairment test completed in 2013, we reclassified Ostravar as a definite-lived intangible asset.
During the second quarter of 2014, severe weather in the Balkans region resulted in significant flooding throughout the area, adversely impacting our Serbian and Bosnian markets, for which Jelen is our primary brand. This natural disaster has exacerbated the ongoing macroeconomic challenges in the area, and we are evaluating the immediate and long-term implications of these floods, and specifically the impact to the future cash flows associated with the Jelen brand. We are unable at this time to fully evaluate the extent of the damage, its impact on the Jelen brand's performance, or the effect that the potential risk of a prolonged recovery in one or both of these markets could have on the long-term value of the brand. This increases the previously disclosed risk of future impairment for Jelen, and if, upon conclusion of our evaluation, we determine that an impairment is necessary, it may be material to our financial results. We expect that we will be able to complete our thorough assessment of the impact of the floods in conjunction with our annual impairment test, which we expect to finalize in the third quarter of 2014.
Separately, our Molson core brand intangible continues to be at risk of future impairment with a fair value estimated at approximately 10% in excess of its carrying value as of the impairment testing date, as the Molson core brands have continued to face significant competitive pressures and challenging macroeconomic conditions in the Canada market. These challenges were partially offset by anticipated cost savings initiatives. As of June 30, 2014, the Molson core brand intangible had a carrying value of $2,845.0 million.
Regarding definite-lived intangibles, we continuously monitor the performance of the underlying asset for potential triggering events suggesting an impairment review should be performed. No such triggering events were identified in the second quarter of 2014. However, recent litigation related to the licensing agreement with Miller in Canada resulted in a $17.9 million impairment charge of our definite-lived intangible asset related to our licensing agreement in December 2013. As of June 30, 2014, the intangible has a remaining carrying value of $32.0 million with an estimated remaining life of approximately three years. The outcome of the litigation or any future settlement discussions with Miller could result in additional impairments. See Note 15, "Commitments and Contingencies" for further discussion.
Debt
Debt
Debt
Debt obligations
Our total borrowings as of June 30, 2014, and December 31, 2013, were composed of the following:
 
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.
On September 3, 2013, we paid the Seller in cash a total of €466.0 million ($614.7 million) consisting of €455.1 million ($600.3 million) in principal and €10.9 million ($14.4 million) for the conversion feature. Separate from the Seller's notice to put, we had made claims with regard to the representations and warranties provided to us upon close of the Acquisition related to local country regulatory matters associated with pre-acquisition periods. As of December 31, 2013, we had withheld €44.9 million ($61.8 million) from the €500 million in principal related to these outstanding claims. During the first half of 2014, we released the €44.9 million ($61.4 million at settlement) withheld to the Seller as a result of the settlement of these claims. We did not incur any interest on amounts withheld.
The €500 million convertible note's embedded conversion feature was determined to meet the definition of a derivative required to be bifurcated and separately accounted for at fair value with changes in fair value recorded in earnings. During the three and six months ended June 29, 2013, we recognized an unrealized gain of $2.7 million and an unrealized loss of $26.8 million, respectively, related to changes in the fair value of the conversion feature. The cash and non-cash interest, excluding the change in fair value of the convertible feature, resulted in an immaterial impact to our effective interest rate for the three and six months ended June 29, 2013.
(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).
During the second quarter of 2014, we entered into a five-year, $750 million revolving multi-currency credit facility, which provides a $100 million sub-facility available for the issuance of letters of credit. This $750 million revolving facility replaced our existing $400 million and $550 million revolving credit facilities, which had maturities in the second quarters of 2015 and 2016, respectively. As a result, we made a reduction to the size of our existing commercial paper program to a maximum aggregate amount outstanding at any time of $750 million. Concurrent with the transaction, we incurred $1.8 million of issuance costs related to the $750 million revolving credit facility which are being amortized over the term of the agreement and recognized $1.3 million of accelerated amortization related to the termination of the pre-existing facilities. There were no outstanding borrowings under our $750 million revolving credit facility as of June 30, 2014, or under our pre-existing credit facilities upon termination or as of December 31, 2013. As of June 30, 2014, we have $448.9 million available to draw on under our $750 million revolving credit facility, as the borrowing capacity is reduced by borrowings under our commercial paper program discussed above.
As of June 30, 2014, and December 31, 2013, we had outstanding borrowings of $4.4 million and $3.1 million, respectively, under the Japanese Yen line of credit and no borrowings under the GBP and CAD facilities.
Our Europe segment has a notional cross-border, cross-currency cash pool for the majority of its subsidiaries. As of June 30, 2014, we had $134.2 million in bank overdrafts and $166.9 million in bank cash related to the pool for a net positive position of $32.7 million. As of December 31, 2013, we did not have bank overdrafts related to the cash pool. Also included in short-term borrowings is $11.9 million and $4.8 million related to factoring arrangements and other short-term borrowings within our Europe business as of June 30, 2014, and December 31, 2013, respectively.
Debt Fair Value Measurements
We utilize market approaches to estimate the fair value of certain outstanding borrowings by discounting anticipated future cash flows derived from the contractual terms of the obligations and observable market interest and foreign exchange rates. As of June 30, 2014, and December 31, 2013, the fair value of our outstanding long-term debt (including current portion) was $3,368.9 million and $3,359.1 million, respectively. All senior notes are valued based on significant observable inputs and would be classified as Level 2 in the fair value hierarchy. The carrying values of all other outstanding long-term borrowings and our short-term borrowings approximate their fair values.
Other
Under the terms of each of our debt facilities, we must comply with certain restrictions. These include restrictions on priority indebtedness (certain threshold percentages of secured consolidated net tangible assets), leverage thresholds, liens, and restrictions on certain types of sale lease-back transactions and transfers of assets. As of June 30, 2014, and December 31, 2013, we were in compliance with all of these restrictions and have met all debt payment obligations.
Accumulated Other Comprehensive Income (Loss) Accumulated Other Comprehensive Income (Loss)
Accumuolated Other Comprehensive Income (Loss)
Accumulated Other Comprehensive Income (Loss)
Changes in accumulated other comprehensive income (loss) ("AOCI") for the first half of 2014 were as follows:
 
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


Reclassifications from AOCI to income for the three and six months ended June 30, 2014, and June 29, 2013, were as follows:
 
 
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.
Derivative Instruments and Hedging Activities
Derivative Instruments and Hedging Activities
Derivative Instruments and Hedging Activities
Our risk management and derivative accounting policies are presented in Notes 1 and 17 of the Notes included in our Annual Report and did not significantly change during the first half of 2014. As noted in Note 17 of the Notes included in our Annual Report, due to the nature of our counterparty agreements, and the fact that we are not subject to master netting arrangements, we are not able to net positions with the same counterparty and therefore present our derivative positions gross in our unaudited condensed consolidated balance sheets. Our significant derivative/hedge positions have not changed significantly since year-end, except as noted below.
Interest Rate Swaps
In the second quarter of 2014, we entered into interest rate swaps with an aggregate notional of $300 million to economically convert that portion of our fixed rate $500 million 3.5% notes due 2022 ("$500 million notes") to floating rate debt. We will receive fixed interest payments semi-annually at a rate of 3.5% per annum and pay a rate to our counterparties based on a credit spread plus the three month LIBOR rate, thereby effectively exchanging a fixed interest obligation for a floating interest obligation. Subsequent to June 30, 2014, we entered into incremental interest rate swaps with an aggregate notional of $200 million thus economically converting all of the $500 million notes to floating rate debt.
We entered into these interest rate swap agreements to minimize exposure to changes in the fair value of our $500 million notes that results from fluctuations in the benchmark interest rate, specifically LIBOR, and have designated these swaps as fair value hedges and determined that there is zero ineffectiveness. The changes in fair value of derivatives designated as fair value hedges and the offsetting changes in fair value of the hedged item are recognized in earnings. For each of the three and six months ended June 30, 2014, the changes in fair value of the interest rate swaps and the offsetting changes in fair value of the $500 million notes attributable to the benchmark interest rate was a gain of $1.2 million and a loss of $1.2 million respectively, both recorded in interest expense in our unaudited condensed consolidated statement of operations. Accordingly, as of June 30, 2014, such adjustments had increased the carrying value of our $500 million notes by $1.2 million. See Note 11, "Debt" for additional details.
Forward Starting Interest Rate Swaps
In the second quarter of 2014, we began to enter into forward starting interest rate swaps to manage our exposure to the volatility of the interest rates associated with future interest payments on a forecasted debt issuance. As of June 30, 2014, we had entered into one swap agreement having a total notional of CAD 40 million with a fixed interest rate of 3.11%. Subsequent to June 30, 2014, we entered into additional forward starting interest rate swaps totaling CAD 120 million and we intend to enter into multiple additional forward starting interest rate swaps up to the date of the forecasted issuance. The forward starting interest rate swaps have an effective date of September 2015 and a termination date of September 2025 mirroring the terms of the forecasted debt issuance. Under the agreements we are required to early terminate these swaps in 2015 at the time we expect to issue the forecasted debt. We have designated these contracts as cash flow hedges.
Cross Currency Swaps
In the first quarter of 2014, we early settled the final remaining CAD 241 million notional of our outstanding currency swaps designated as a net investment hedge of our Canadian operations for $65.2 million. As of June 30, 2014, we do not have any cross currency swap positions outstanding.
Derivative Fair Value Measurements
We utilize market approaches to estimate the fair value of our derivative instruments by discounting anticipated future cash flows derived from the derivative's contractual terms and observable market interest, foreign exchange and commodity rates. The fair values of our derivatives also include credit risk adjustments to account for our counterparties' credit risk, as well as our own non-performance risk. The table below summarizes our derivative assets and liabilities that were measured at fair value as of June 30, 2014, and December 31, 2013.
 
 
 
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
)
 
$



As of June 30, 2014, we had no significant transfers between Level 1 and Level 2. New derivative contracts transacted during the three and six months ended June 30, 2014, were all included in Level 2.
Results of Period Derivative Activity
The tables below include the year to date results of our derivative activity in the unaudited condensed consolidated balance sheets as of June 30, 2014, and December 31, 2013, and the unaudited condensed consolidated statements of operations for the three and six months ended June 30, 2014, and June 29, 2013.
Fair Value of Derivative Instruments in the Condensed Consolidated Balance Sheet (in millions, except for certain commodity swaps with notional amounts measured in Metric Tonnes, as noted)
 
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
)

The Pretax Effect of Derivative Instruments on the Condensed Consolidated Statement of Operations (in millions)
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

 
 
 
$

 
 
 
$

During the periods presented we recorded no significant ineffectiveness related to these cash flow, net investment and fair value hedges.
We expect net gains of approximately $8 million (pre-tax) recorded in AOCI at June 30, 2014, will be reclassified into earnings within the next 12 months. For derivatives designated in cash flow hedge relationships, the maximum length of time over which forecasted transactions are hedged at June 30, 2014, is 3.8 years.
Other Derivatives (in millions)
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
)
Pension and Other Postretirement Benefits
Pension and Other Postretirement Benefits
Pension and Other Postretirement Benefits
Net Periodic Pension and Other Postretirement Benefits ("OPEB") Cost
 
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


During the six months ended June 30, 2014, employer contributions to the defined benefit plans were $23.8 million. Total fiscal year 2014 employer contributions to the defined benefit plans are expected to be approximately $35 million based on foreign exchange rates as of June 30, 2014. MillerCoors, BRI and BDL contributions to their defined benefit pension and other postretirement benefit plans are not included above, as they are not consolidated in our financial statements.
Commitments and Contingencies
Commitments and Contingencies
Commitments and Contingencies
Discontinued Operations
Kaiser
In 2006, we sold our entire equity interest in our Brazilian unit, Cervejarias Kaiser Brasil S.A. ("Kaiser") to FEMSA Cerveza S.A. de C.V. ("FEMSA"). The terms of the sale agreement require us to indemnify FEMSA for exposures related to certain tax, civil and labor contingencies arising prior to FEMSA's purchase of Kaiser. In addition, we provided an indemnity to FEMSA for losses Kaiser may incur with respect to tax claims associated with certain previously utilized purchased tax credits. The discontinued operations balances within the current and non-current liabilities of our unaudited condensed consolidated balance sheets consist entirely of our estimates of these liabilities. These liabilities are denominated in Brazilian Reais and are therefore subject to foreign exchange gains or losses, which are recognized in the discontinued operations section of the unaudited condensed consolidated statement of operations. There have been no changes in the underlying liabilities from the year ended December 31, 2013, therefore all changes in the current and non-current liabilities of discontinued operations during the first half of 2014 are due to fluctuations in foreign exchange rates from December 31, 2013, to June 30, 2014. During the three months ended June 30, 2014, and June 29, 2013, we recognized gains of $0.2 million and $1.7 million, respectively, from discontinued operations associated with foreign exchange gains and losses related to indemnities we provided to FEMSA and during the six months ended June 30, 2014, and June 29, 2013, we recognized losses of $1.7 million and gains of $0.8 million, respectively. Our exposure related to the tax, civil and labor indemnity claims is capped at the amount of the sales price of the 68% equity interest of Kaiser, which was $68.0 million. Separately, the maximum potential claims amount remaining for the purchased tax credits was $158.1 million as of June 30, 2014.
Future settlement procedures and related negotiation activities associated with these contingencies are largely outside of our control. Due to the uncertainty involved with the ultimate outcome and timing of these contingencies, significant adjustments to the carrying values of the indemnity obligations have been recorded to date, and additional future adjustments may be required.
Guarantees
We guarantee indebtedness and other obligations to banks and other third parties for some of our equity method investments and consolidated subsidiaries. Related to our previous ownership in the Montréal Canadiens, we guarantee its obligations under a ground lease for the Bell Centre Arena (the "Ground Lease Guarantee"). Upon sale of our interest, the new owners agreed to indemnify us in connection with the liabilities we may incur under the Ground Lease Guarantee and provided us with a CAD 10 million letter of credit to guarantee such indemnity. This transaction did not materially affect our risk exposure related to the Ground Lease Guarantee, which continues to be recognized as a liability on our consolidated balance sheets.
Related to guarantees, other liabilities in the accompanying unaudited condensed consolidated balance sheets include $5.7 million as of June 30, 2014, and $5.8 million as of December 31, 2013, both of which are non-current.
Litigation and Other Disputes and Environmental
Related to litigation, other disputes and environmental issues, we have accrued an aggregate of $17.1 million as of June 30, 2014, and $14.0 million as of December 31, 2013. We believe that any reasonably possible losses in excess of the amounts accrued are immaterial to our unaudited condensed consolidated financial statements.
In addition to the specific case discussed below, we are involved in other disputes and legal actions arising in the ordinary course of our business. While it is not feasible to predict or determine the outcome of these proceedings, in our opinion, based on a review with legal counsel, none of these disputes or legal actions is expected to have a material impact on our business, consolidated financial position, results of operations or cash flows. However, litigation is subject to inherent uncertainties and an adverse result in these or other matters may arise from time to time that may harm our business.
In 2013, we became aware of potential liabilities in several Central European countries primarily related to local country regulatory matters associated with pre-acquisition periods. We recorded liabilities related to these matters in the second quarter of 2013 as we finalized purchase price accounting related to the Acquisition. During the first quarter of 2014, these matters were favorably resolved and we released the associated indirect tax and income tax related reserves, inclusive of post-acquisition accrued interest, resulting in a gain of $13.0 million, recorded within marketing, general and administrative expenses and an income tax benefit of $18.5 million. As a result of the resolution, in the first quarter of 2014 we released amounts previously withheld with regard to these matters to the Seller. See Note 11, "Debt" for further discussion.
While we cannot predict the eventual aggregate cost for environmental and related matters in which we are currently involved, we believe that any payments, if required, for these matters would be made over a period of time in amounts that would not be material in any one year to our results from operations, cash flows or our financial or competitive position. We believe adequate reserves have been provided for losses that are probable and estimable.
Litigation and Other Disputes
In December 2012, Miller Brewing Company (“Miller”) orally informed us of its intent to terminate the license agreement between Miller and us whereby we have exclusive rights to distribute certain Miller products in Canada (the “License Agreement”). Miller alleges that we failed to meet certain volume sales targets under the License Agreement. We do not believe Miller has any right under the License Agreement or otherwise to terminate the License Agreement. We filed a lawsuit in Ontario, Canada (Molson Canada 2005 v. Miller Brewing Company, Sup. Ct. of Justice-Ontario, CV-12-470589) seeking an injunction preventing Miller from terminating the License Agreement and ordering Miller to abide by its contractual terms. On January 18, 2013, Miller sent written notice to us purporting to terminate the License Agreement. On June 20, 2013, we were granted an injunction preventing Miller's termination of the License Agreement, pending a trial on the merits, originally scheduled for December 2013. During December 2013, upon completion of discovery and exchange of affidavits, both parties requested an extension of the trial and entered into private settlement discussions. The parties have been unable to reach a settlement at this time. On May 2, 2014, the court set a new trial date for November 2014.
At trial we intend to vigorously assert and defend our rights in this lawsuit. The ultimate outcome of the litigation could result in a materially different outcome than currently estimated by management, including the potential of further impairment beyond the $17.9 million non-cash charge recorded in the fourth quarter of 2013, or possible recovery of previously impaired amounts. We recognized net sales related to the License Agreement of $25.5 million and $29.9 million for the three months ended June 30, 2014, and June 29, 2013, respectively, and net sales of $39.4 million and $47.1 million for the six months ended June 30, 2014, and June 29, 2013, respectively. Additionally, as of June 30, 2014, we had a definite-lived intangible asset related to the License Agreement with a carrying value of $32.0 million and a remaining life of approximately three years.
Environmental
Canada
Our Canada brewing operations are subject to provincial environmental regulations and local permit requirements. Our Montréal and Toronto breweries have water treatment facilities to pre-treat waste water before it goes to the respective local governmental facility for final treatment. We have environmental programs in Canada including organization, monitoring and verification, regulatory compliance, reporting, education and training, and corrective action.
We sold a chemical specialties business in 1996. We are still responsible for certain aspects of environmental remediation, undertaken or planned, at those chemical specialties business locations. We have established provisions for the costs of these remediation programs.
United States
We were previously notified that we are or may be a potentially responsible party ("PRP") under the Comprehensive Environmental Response, Compensation and Liability Act or similar state laws for the cleanup of sites where hazardous substances have allegedly been released into the environment. We cannot predict with certainty the total costs of cleanup, our share of the total cost, the extent to which contributions will be available from other parties, the amount of time necessary to complete the cleanups or insurance coverage.
Lowry
We are one of a number of entities named by the Environmental Protection Agency ("EPA") as a PRP at the Lowry Superfund site. This landfill is owned by the City and County of Denver ("Denver") and is managed by Waste Management of Colorado, Inc. ("Waste Management"). In 1990, we recorded a pre-tax charge of $30 million, a portion of which was put into a trust in 1993 as part of a settlement with Denver and Waste Management regarding the then-outstanding litigation. Our settlement was based on an assumed remediation cost of $120 million (in 1992 adjusted dollars). We are obligated to pay a portion of future costs, if any, in excess of that amount.
Waste Management provides us with updated annual cost estimates through 2032. We review these cost estimates in the assessment of our accrual related to this issue. We use certain assumptions that differ from Waste Management's estimates to assess our expected liability. Our expected liability (based on the $120 million threshold being met) is based on our best estimates available.
The assumptions used are as follows:
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.
Based on these assumptions, the present value and gross amount of the costs at June 30, 2014, are approximately $2.2 million and $5.3 million, respectively. We did not assume any future recoveries from insurance companies in the estimate of our liability, and none are expected.
Considering the estimates extend through the year 2032 and the related uncertainties at the site, including what additional remedial actions may be required by the EPA, new technologies and what costs are included in the determination of when the $120 million is reached, the estimate of our liability may change as further facts develop. We cannot predict the amount of any such change, but additional accruals in the future are possible.
Other
In prior years, we have been notified by the EPA and certain state environmental divisions that we are a PRP, along with other parties, at the Cooper Drum site in southern California, the East Rutherford and Berry's Creek sites in New Jersey and the Chamblee and Smyrna sites in Georgia. Certain former non-beer business operations, which we discontinued use of and sold (excluding the property of the former Chamblee site) in the mid-1990s, were involved at these sites. Potential losses associated with these sites could increase as remediation planning progresses.
We are aware of groundwater contamination at some of our properties in Colorado resulting from historical, ongoing, or nearby activities. There may also be other contamination of which we are currently unaware.
Europe and MCI
We are subject to the requirements of governmental and local environmental and occupational health and safety laws and regulations within each of the countries in which we operate. Compliance with these laws and regulations did not materially affect our second quarter or first half of 2014 capital expenditures, results of operations or our financial or competitive position, and we do not anticipate that they will do so during the remainder of the year.
Supplemental Guarantor Information
Supplemental Guarantor Information
Supplemental Guarantor Information
        For purposes of this Note 16, including the tables, "Parent Guarantor and 2012 Issuer" shall mean MCBC and "Subsidiary Guarantors" shall mean certain Canadian, U.S. and European subsidiaries reflecting the substantial operations of each of our Canadian and U.S. segments, as well as our U.K. operations of our European segment.
SEC Registered Securities
On May 3, 2012, MCBC issued $1.9 billion of senior notes, in a registered public offering, consisting of $300 million 2.0% senior notes due 2017, $500 million 3.5% senior notes due 2022, and $1.1 billion 5.0% senior notes due 2042. These senior notes are guaranteed on a senior unsecured basis by the Subsidiary Guarantors. Each of the Subsidiary Guarantors is 100% owned by the Parent Guarantor. The guarantees are full and unconditional and joint and several.
Other Debt
On September 22, 2005, MC Capital Finance ULC ("MC Capital Finance") issued $1.1 billion of senior notes consisting of $300 million 4.85% U.S. publicly registered notes due 2010 and CAD 900 million 5.0% privately placed notes maturing on September 22, 2015. These CAD 900 million senior notes were subsequently exchanged for substantially identical CAD 900 million senior notes which were quantified by way of a prospectus in Canada. In connection with an internal corporate reorganization, Molson Coors International LP ("MCI LP") was subsequently added as a co-issuer of the CAD 900 million senior notes in 2007. The $300 million senior notes were repaid in 2010. The continuous disclosure requirements applicable to MC Capital Finance in Canada are satisfied through the consolidating financial information in respect of MC Capital Finance, MCI LP and other subsidiary guarantors of the CAD 900 million senior notes as currently presented within the Subsidiary Guarantors column.
None of our other outstanding debt is publicly registered, and it is all guaranteed on a senior and unsecured basis by the Parent Guarantor and Subsidiary Guarantors. These guarantees are full and unconditional and joint and several. See Note 11, "Debt" for details of all debt issued and outstanding as of June 30, 2014.
Presentation    
During the second quarter of 2014, we identified an immaterial error related to unrecognized tax benefits in previous years and have revised our unaudited condensed consolidated balance sheet as of December 31, 2013 to correct for this error. See Note 1, "Basis of Presentation and Summary of Significant Accounting Policies" for further information. We have revised our guarantor condensed consolidating balance sheet as of December 31, 2013 included herein, to reflect the correction of this error and we do not consider the impacts material to the presentation.
Effective the first quarter of 2014, we changed our interim accounting for advertising expenses and have applied the change to our historical interim periods retrospectively. See Note 1, "Basis of Presentation and Summary of Significant Accounting Policies" for further information. Note that we do not consider the impacts material to the presentation of our interim guarantor condensed consolidating statements of operations or condensed consolidating statement of cash flows.
During the third quarter of 2013, we identified that we had incorrectly recorded tax adjustments related to certain foreign currency movements in the financial statements for both the first and second quarters of 2013. See Note 1, "Basis of Presentation and Summary of Significant Accounting Policies" for further information. We have revised comprehensive income (loss) attributable to MCBC in the condensed consolidating statement of operations for the three and six months ended June 29, 2013. These errors were corrected in the third quarter of 2013 and therefore had no impact on the unaudited condensed consolidated balance sheet as of December 31, 2013. This revision, in addition to the change in accounting described above, resulted in adjustments to comprehensive income (loss) attributable to MCBC within the condensed consolidating statement of operations for the Parent Guarantor from $225.9 million, as previously reported, to $180.6 million, as adjusted, for the three months ended June 29, 2013, and $19.7 million, as previously reported, to $(52.1) million, as adjusted, for the six months ended June 29, 2013.
The following information sets forth the condensed consolidating statements of operations for the three and six months ended June 30, 2014, and June 29, 2013, condensed consolidating balance sheets as of June 30, 2014, and December 31, 2013, and condensed consolidating statements of cash flows for the six months ended June 30, 2014, and June 29, 2013. Investments in subsidiaries are accounted for under the equity method; accordingly, entries necessary to consolidate the Parent Guarantor and all of our guarantor and non-guarantor subsidiaries are reflected in the eliminations column. In the opinion of management, separate complete financial statements of MCBC and the Subsidiary Guarantors would not provide additional material information that would be useful in assessing their financial composition.
MOLSON COORS BREWING COMPANY AND SUBSIDIARIES
CONDENSED CONSOLIDATING STATEMENT OF CASH FLOWS
FOR THE SIX MONTHS ENDED JUNE 30, 2014
(IN MILLIONS)
(UNAUDITED)

 
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


MOLSON COORS BREWING COMPANY AND SUBSIDIARIES
CONDENSED CONSOLIDATING STATEMENT OF CASH FLOWS
FOR THE SIX MONTHS ENDED JUNE 29, 2013
(IN MILLIONS)
(UNAUDITED)

 
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



Basis of Presentation and Summary of Significant Accounting Policies Basis of Presentation and Summary of Significant Accounting Policies (Tables)
The quarterly impact of the change in accounting policy on marketing, general and administrative expenses and the associated impact on income tax expense, as well as the impact to certain subtotals and diluted earnings per share within our unaudited condensed consolidated statement of operations, is as follows:
 
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

As noted above, under our historical treatment, advertising expenses were not deferred from one fiscal year to the next. Therefore, the change in interim accounting had no impact on full year consolidated results.

The following table shows the impact to income (loss) from continuing operations before income taxes by segment as a result of the change in accounting policy for advertising expense. The full impact of this change in presentation is reflected within marketing, general and administrative expenses.
Income (loss) from continuing operations before income taxes by segment:
 
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
)
During the third quarter of 2013, we identified that we had incorrectly recorded tax adjustments related to certain foreign currency movements in the financial statements for both the first and second quarters of 2013 that misstated non-current deferred tax assets, accumulated other comprehensive income (loss), and comprehensive income by immaterial amounts. We have revised the foreign currency translation adjustments, net of tax, included in other comprehensive income (loss) and comprehensive income (loss) in the unaudited condensed consolidated statements of comprehensive income (loss) for the three and six months ended June 29, 2013. These errors were corrected in the third quarter of 2013 and therefore had no impact on the unaudited condensed consolidated balance sheet as of December 31, 2013. Note that the as adjusted amounts below also reflect the adjustments related to the change in interim accounting for advertising expense as discussed above.
 
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
)
Segment Reporting (Tables)
The following table presents net sales by segment:
 
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.
The following table presents income (loss) from continuing operations before income taxes by 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.
The following table presents total assets by segment:
 
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

Investments (Tables)
Summarized financial information for MillerCoors is as follows:
Condensed Balance Sheets
 
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

The following represents our proportionate share in MillerCoors' equity and reconciliation to our investment in MillerCoors:
 
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.
Results of Operations
 
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


The following represents our proportionate share in net income attributable to MillerCoors reported under the equity method:
 
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.
The following table summarizes our transactions with 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

The following summarizes the assets and liabilities of our consolidated VIEs (including noncontrolling interests):
 
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

Share-Based Payments (Tables)
The following table summarizes share-based compensation expense:
 
Three Months Ended
 
Six Months Ended
 
June 30, 2014
 
June 29, 2013
 
June 30, 2014
 
June 29, 2013
 
(In millions)
Pretax compensation expense
$
3.8

 
$
4.3

 
$
12.1

 
$
15.4

Tax benefit
(1.2
)
 
(1.1
)
 
(3.9
)
 
(4.5
)
After-tax compensation expense
$
2.6

 
$
3.2

 
$
8.2

 
$
10.9

The following table represents the summary of stock options and stock-only stock appreciation rights ("SOSAR") outstanding as of June 30, 2014, and the activity during the six months ended June 30, 2014:
 
Shares outstanding
 
Weighted-average
exercise price per
share
 
Weighted-average
remaining
contractual life
(years)
 
Aggregate
intrinsic value
 
(In millions, except per share amounts and years)
Outstanding as of December 31, 2013
3.5
 
$43.41
 
4.57
 
$
45.1

Granted
0.2
 
$58.24
 
 
 
 
Exercised
(0.9)
 
$43.50
 
 
 
 
Forfeited
(0.1)
 
$44.24
 
 
 
 
Outstanding as of June 30, 2014
2.7
 
$44.28
 
4.75
 
$
79.9

Exercisable at June 30, 2014
2.3
 
$43.34
 
4.00
 
$
69.5

The following table represents non-vested RSUs, DSUs, PSUs and PUs as of June 30, 2014, and the activity during the six months ended June 30, 2014:
 
RSUs and DSUs
 
PUs
 
PSUs
 
Units
 
Weighted-average
grant date fair value
per unit
 
Units
 
Weighted-average
fair value
per unit
 
Units
 
Weighted-average
grant date fair value
per unit
 
(In millions, except per unit amounts)
Non-vested as of December 31, 2013
0.7

 
$42.08
 
1.0

 
$2.87
 
0.2

 
$43.10
Granted
0.2

 
$59.02
 

 
$—
 
0.2

 
$58.69
Vested
(0.2
)
 
$41.01
 
(0.5
)
 
$6.12
 

 
$—
Forfeited

 
$—
 

 
$—
 

 
$—
Non-vested as of June 30, 2014
0.7

 
$47.42
 
0.5

 
$0.45
 
0.4

 
$50.49
The weighted-average fair value per unit for the non-vested PSUs is $46.10 as of June 30, 2014.
The fair value of each option granted in the first half of 2014 and 2013 was determined on the date of grant using the Black-Scholes option-pricing model with the following weighted-average assumptions:
 
Six Months Ended
 
June 30, 2014
 
June 29, 2013
Risk-free interest rate
2.29%
 
1.43%
Dividend yield
2.57%
 
2.88%
Volatility range
22.66%-26.57%
 
22.39%-25.90%
Weighted-average volatility
25.59%
 
25.02%
Expected term (years)
7.5
 
7.7
Weighted-average fair market value
$12.78
 
$8.39
The fair value of the market metric for each PSU granted in the first half of 2014 and 2013 was determined on the date of grant using a Monte Carlo model to simulate total shareholder return for MCBC and peer companies with the following weighted-average assumptions:
 
Six Months Ended
 
June 30, 2014
 
June 29, 2013
Risk-free interest rate
0.72%
 
0.33%
Dividend yield
2.57%
 
2.88%
Volatility range
12.45%-72.41%
 
12.18%-69.37%
Weighted-average volatility
21.72%
 
21.13%
Expected term (years)
2.82
 
2.83
Weighted-average fair market value
$58.69
 
$43.10
Special items (Tables)
The table below summarizes special items recorded by segment:
 
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.
The table below summarizes the activity in the restructuring accruals by segment:
 
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

Other Income and Expense (Tables)
Summarization of other income and expenses
The table below summarizes other income and expense:
 
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.
Earnings per Share ("EPS") (Tables)
The following summarizes the effect of dilutive securities on diluted EPS:
 
Three Months Ended
 
Six Months Ended
 
June 30, 2014
 
June 29, 2013(1)
 
June 30, 2014
 
June 29, 2013(1)
 
(In millions, except per share amounts)
Amounts attributable to MCBC
 
 
 
 
 
 
 
Net income (loss) from continuing operations
$
290.7

 
$
265.6

 
$
456.0

 
$
295.0

Income (loss) from discontinued operations, net of tax
0.2

 
1.7

 
(1.7
)
 
0.8

Net income (loss) attributable to Molson Coors Brewing Company
$
290.9

 
$
267.3

 
$
454.3

 
$
295.8

Weighted-average shares for basic EPS
184.8

 
182.9

 
184.5

 
182.3

Effect of dilutive securities:
 
 
 
 
 
 
 
Stock options and SOSARs
0.7

 
0.7

 
0.6

 
0.7

RSUs, PSUs, PUs and DSUs
0.4

 
0.5

 
0.6

 
0.5

Weighted-average shares for diluted EPS
185.9

 
184.1

 
185.7

 
183.5

Basic net income (loss) attributable to Molson Coors Brewing Company per share(2):
 
 
 
 

 

From continuing operations
$
1.57

 
$
1.45

 
$
2.47

 
$
1.62

From discontinued operations

 
0.01

 
(0.01
)
 

Basic net income (loss) attributable to Molson Coors Brewing Company per share
$
1.57

 
$
1.46

 
$
2.46

 
$
1.62

Diluted net income (loss) attributable to Molson Coors Brewing Company per share(2):
 
 
 
 


 
 
From continuing operations
$
1.56

 
$
1.44

 
$
2.46

 
$
1.61

From discontinued operations

 
0.01

 
(0.01
)
 

Diluted net income (loss) attributable to Molson Coors Brewing Company per share
$
1.56

 
$
1.45

 
$
2.45

 
$
1.61

Dividends declared and paid per share
$
0.37

 
$
0.32

 
$
0.74

 
$
0.64


(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.
(2)
The sum of the quarterly net income per share amounts may not agree to the full year net income per share amounts. We calculate net income per share based on the weighted average number of outstanding shares during the reporting period. The average number of shares fluctuates throughout the year and can therefore produce a full year result that does not agree to the sum of the individual quarters.
The following anti-dilutive securities were excluded from the computation of the effect of dilutive securities on diluted earnings per share:
 
Three Months Ended
 
Six Months Ended
 
June 30, 2014
 
June 29, 2013
 
June 30, 2014
 
June 29, 2013
 
(In millions)
Stock options, SOSARs and RSUs
0.1

 
0.2

 

 
0.2

Total weighted-average anti-dilutive securities
0.1

 
0.2

 

 
0.2

Goodwill and Intangible Assets (Tables)
The following summarizes the change in goodwill for the six months ended June 30, 2014:
 
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

The following table presents details of our intangible assets, other than goodwill, as of June 30, 2014:
 
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


The following table presents details of our intangible assets, other than goodwill, as of December 31, 2013:
 
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

Based on foreign exchange rates as of June 30, 2014, the estimated future amortization expense of intangible assets is as follows:
Fiscal year
Amount
 
(In millions)
2014 - remaining
$
21.3

2015
$
40.2

2016
$
40.2

2017
$
14.1

2018
$
12.3

Debt (Tables)
Total long-term borrowings
Our total borrowings as of June 30, 2014, and December 31, 2013, were composed of the following:
 
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.
On September 3, 2013, we paid the Seller in cash a total of €466.0 million ($614.7 million) consisting of €455.1 million ($600.3 million) in principal and €10.9 million ($14.4 million) for the conversion feature. Separate from the Seller's notice to put, we had made claims with regard to the representations and warranties provided to us upon close of the Acquisition related to local country regulatory matters associated with pre-acquisition periods. As of December 31, 2013, we had withheld €44.9 million ($61.8 million) from the €500 million in principal related to these outstanding claims. During the first half of 2014, we released the €44.9 million ($61.4 million at settlement) withheld to the Seller as a result of the settlement of these claims. We did not incur any interest on amounts withheld.
The €500 million convertible note's embedded conversion feature was determined to meet the definition of a derivative required to be bifurcated and separately accounted for at fair value with changes in fair value recorded in earnings. During the three and six months ended June 29, 2013, we recognized an unrealized gain of $2.7 million and an unrealized loss of $26.8 million, respectively, related to changes in the fair value of the conversion feature. The cash and non-cash interest, excluding the change in fair value of the convertible feature, resulted in an immaterial impact to our effective interest rate for the three and six months ended June 29, 2013.
(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).
During the second quarter of 2014, we entered into a five-year, $750 million revolving multi-currency credit facility, which provides a $100 million sub-facility available for the issuance of letters of credit. This $750 million revolving facility replaced our existing $400 million and $550 million revolving credit facilities, which had maturities in the second quarters of 2015 and 2016, respectively. As a result, we made a reduction to the size of our existing commercial paper program to a maximum aggregate amount outstanding at any time of $750 million. Concurrent with the transaction, we incurred $1.8 million of issuance costs related to the $750 million revolving credit facility which are being amortized over the term of the agreement and recognized $1.3 million of accelerated amortization related to the termination of the pre-existing facilities. There were no outstanding borrowings under our $750 million revolving credit facility as of June 30, 2014, or under our pre-existing credit facilities upon termination or as of December 31, 2013. As of June 30, 2014, we have $448.9 million available to draw on under our $750 million revolving credit facility, as the borrowing capacity is reduced by borrowings under our commercial paper program discussed above.
As of June 30, 2014, and December 31, 2013, we had outstanding borrowings of $4.4 million and $3.1 million, respectively, under the Japanese Yen line of credit and no borrowings under the GBP and CAD facilities.
Our Europe segment has a notional cross-border, cross-currency cash pool for the majority of its subsidiaries. As of June 30, 2014, we had $134.2 million in bank overdrafts and $166.9 million in bank cash related to the pool for a net positive position of $32.7 million. As of December 31, 2013, we did not have bank overdrafts related to the cash pool. Also included in short-term borrowings is $11.9 million and $4.8 million related to factoring arrangements and other short-term borrowings within our Europe business as of June 30, 2014, and December 31, 2013, respectively.
Accumulated Other Comprehensive Income (Loss) (Tables)
Changes in accumulated other comprehensive income (loss) ("AOCI") for the first half of 2014 were as follows:
 
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

Reclassifications from AOCI to income for the three and six months ended June 30, 2014, and June 29, 2013, were as follows:
 
 
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.
Derivative Instruments and Hedging Activities (Tables)
The table below summarizes our derivative assets and liabilities that were measured at fair value as of June 30, 2014, and December 31, 2013.
 
 
 
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
)
 
$

Fair Value of Derivative Instruments in the Condensed Consolidated Balance Sheet (in millions, except for certain commodity swaps with notional amounts measured in Metric Tonnes, as noted)
 
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
)

The Pretax Effect of Derivative Instruments on the Condensed Consolidated Statement of Operations (in millions)
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

 
 
 
$

 
 
 
$

We expect net gains of approximately $8 million (pre-tax) recorded in AOCI at June 30, 2014, will be reclassified into earnings within the next 12 months. For derivatives designated in cash flow hedge relationships, the maximum length of time over which forecasted transactions are hedged at June 30, 2014, is 3.8 years.
Other Derivatives (in millions)
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
)
Pension and Other Postretirement Benefits (Tables)
Net periodic pension costs under retirement plans and other post-retirement benefits
Net Periodic Pension and Other Postretirement Benefits ("OPEB") Cost
 
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

Supplemental Guarantor Information Supplemental (Tables)
MOLSON COORS BREWING COMPANY AND SUBSIDIARIES
CONDENSED CONSOLIDATING STATEMENT OF OPERATIONS
FOR THE THREE MONTHS ENDED JUNE 29, 2013
(IN MILLIONS)
(UNAUDITED)

 
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

MOLSON COORS BREWING COMPANY AND SUBSIDIARIES
CONDENSED CONSOLIDATING STATEMENT OF OPERATIONS
FOR THE THREE MONTHS ENDED JUNE 30, 2014
(IN MILLIONS)
(UNAUDITED)

 
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


MOLSON COORS BREWING COMPANY AND SUBSIDIARIES
CONDENSED CONSOLIDATING STATEMENT OF OPERATIONS
FOR THE SIX MONTHS ENDED JUNE 30, 2014
(IN MILLIONS)
(UNAUDITED)

 
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


MOLSON COORS BREWING COMPANY AND SUBSIDIARIES
CONDENSED CONSOLIDATING STATEMENT OF OPERATIONS
FOR THE SIX MONTHS ENDED JUNE 29, 2013
(IN MILLIONS)
(UNAUDITED)

 
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
)
MOLSON COORS BREWING COMPANY AND SUBSIDIARIES
CONDENSED CONSOLIDATING BALANCE SHEETS
AS OF JUNE 30, 2014
(IN MILLIONS)
(UNAUDITED)
 
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

MOLSON COORS BREWING COMPANY AND SUBSIDIARIES
CONDENSED CONSOLIDATING BALANCE SHEETS
AS OF DECEMBER 31, 2013
(IN MILLIONS)
(UNAUDITED)
 
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

MOLSON COORS BREWING COMPANY AND SUBSIDIARIES
CONDENSED CONSOLIDATING STATEMENT OF CASH FLOWS
FOR THE SIX MONTHS ENDED JUNE 29, 2013
(IN MILLIONS)
(UNAUDITED)

 
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

MOLSON COORS BREWING COMPANY AND SUBSIDIARIES
CONDENSED CONSOLIDATING STATEMENT OF CASH FLOWS
FOR THE SIX MONTHS ENDED JUNE 30, 2014
(IN MILLIONS)
(UNAUDITED)

 
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

Basis of Presentation and Summary of Significant Accounting Policies Narrative (Details) (USD $)
In Millions, unless otherwise specified
3 Months Ended 6 Months Ended
Jun. 30, 2014
Restatement Adjustment [Member]
Dec. 31, 2013
Retained earnings [Member]
Jun. 30, 2014
Minimum [Member]
weeks
Jun. 30, 2014
Maximum [Member]
weeks
Increase (Decrease) in Unrecognized Tax Benefits, Current
$ 19.3 
 
 
 
Increase (Decrease) in Unrecognized Tax Benefits, Noncurrent
14.4 
 
 
 
Number of weeks in fiscal year, range (in weeks)
 
 
52 
53 
Immaterial misstatement of unrecognized tax benefits and retained earnings, amount
 
$ (33.7)
 
 
Basis of Presentation and Summary of Significant Accounting Policies Change in Accounting Policy (Details) (USD $)
In Millions, except Per Share data, unless otherwise specified
3 Months Ended 6 Months Ended 3 Months Ended 6 Months Ended 3 Months Ended 6 Months Ended 3 Months Ended 6 Months Ended 3 Months Ended 6 Months Ended 3 Months Ended 6 Months Ended 3 Months Ended
Jun. 30, 2014
Jun. 29, 2013
Jun. 30, 2014
Jun. 29, 2013
Jun. 30, 2014
Canada [Member]
Jun. 29, 2013
Canada [Member]
Jun. 30, 2014
Canada [Member]
Jun. 29, 2013
Canada [Member]
Jun. 30, 2014
U.S. [Member]
Jun. 29, 2013
U.S. [Member]
Jun. 30, 2014
U.S. [Member]
Jun. 29, 2013
U.S. [Member]
Jun. 30, 2014
Europe [Member]
Jun. 29, 2013
Europe [Member]
Jun. 30, 2014
Europe [Member]
Jun. 29, 2013
Europe [Member]
Jun. 30, 2014
MCI [Member]
Jun. 29, 2013
MCI [Member]
Jun. 30, 2014
MCI [Member]
Jun. 29, 2013
MCI [Member]
Jun. 30, 2014
Corporate [Member]
Jun. 29, 2013
Corporate [Member]
Jun. 30, 2014
Corporate [Member]
Jun. 29, 2013
Corporate [Member]
Dec. 31, 2013
As Reported [Member]
Sep. 28, 2013
As Reported [Member]
Jun. 29, 2013
As Reported [Member]
Mar. 30, 2013
As Reported [Member]
Dec. 31, 2013
As Reported [Member]
Canada [Member]
Sep. 28, 2013
As Reported [Member]
Canada [Member]
Jun. 29, 2013
As Reported [Member]
Canada [Member]
Mar. 30, 2013
As Reported [Member]
Canada [Member]
Dec. 31, 2013
As Reported [Member]
U.S. [Member]
Sep. 28, 2013
As Reported [Member]
U.S. [Member]
Jun. 29, 2013
As Reported [Member]
U.S. [Member]
Mar. 30, 2013
As Reported [Member]
U.S. [Member]
Dec. 31, 2013
As Reported [Member]
Europe [Member]
Sep. 28, 2013
As Reported [Member]
Europe [Member]
Jun. 29, 2013
As Reported [Member]
Europe [Member]
Mar. 30, 2013
As Reported [Member]
Europe [Member]
Dec. 31, 2013
As Reported [Member]
MCI [Member]
Sep. 28, 2013
As Reported [Member]
MCI [Member]
Jun. 29, 2013
As Reported [Member]
MCI [Member]
Mar. 30, 2013
As Reported [Member]
MCI [Member]
Dec. 31, 2013
As Reported [Member]
Corporate [Member]
Sep. 28, 2013
As Reported [Member]
Corporate [Member]
Jun. 29, 2013
As Reported [Member]
Corporate [Member]
Mar. 30, 2013
As Reported [Member]
Corporate [Member]
Dec. 31, 2013
As Adjusted [Member]
Sep. 28, 2013
As Adjusted [Member]
Jun. 29, 2013
As Adjusted [Member]
Mar. 30, 2013
As Adjusted [Member]
Dec. 31, 2013
As Adjusted [Member]
Canada [Member]
Sep. 28, 2013
As Adjusted [Member]
Canada [Member]
Jun. 29, 2013
As Adjusted [Member]
Canada [Member]
Mar. 30, 2013
As Adjusted [Member]
Canada [Member]
Dec. 31, 2013
As Adjusted [Member]
U.S. [Member]
Sep. 28, 2013
As Adjusted [Member]
U.S. [Member]
Jun. 29, 2013
As Adjusted [Member]
U.S. [Member]
Mar. 30, 2013
As Adjusted [Member]
U.S. [Member]
Dec. 31, 2013
As Adjusted [Member]
Europe [Member]
Sep. 28, 2013
As Adjusted [Member]
Europe [Member]
Jun. 29, 2013
As Adjusted [Member]
Europe [Member]
Mar. 30, 2013
As Adjusted [Member]
Europe [Member]
Dec. 31, 2013
As Adjusted [Member]
MCI [Member]
Sep. 28, 2013
As Adjusted [Member]
MCI [Member]
Jun. 29, 2013
As Adjusted [Member]
MCI [Member]
Mar. 30, 2013
As Adjusted [Member]
MCI [Member]
Dec. 31, 2013
As Adjusted [Member]
Corporate [Member]
Sep. 28, 2013
As Adjusted [Member]
Corporate [Member]
Jun. 29, 2013
As Adjusted [Member]
Corporate [Member]
Mar. 30, 2013
As Adjusted [Member]
Corporate [Member]
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Marketing, general and administrative expenses
$ (327.8)
$ (319.5)
$ (591.7)
$ (613.4)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
$ (296.4)
$ (307.8)
$ (304.3)
$ (285.3)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
$ (289.6)
$ (290.8)
$ (319.5)
$ (293.9)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Income (loss) from continuing operations before income taxes
329.3 
297.2 1
498.9 
330.0 1
120.8 
128.6 1
209.1 
157.0 1
190.1 
172.6 1
312.9 
290.0 1
84.5 
75.8 1
111.5 
70.6 1
(3.7)
(4.0)1
(6.7)
(9.2)1
(62.4)
(75.8)1
(127.9)
(178.4)1
145.3 
155.4 
312.4 
41.4 
60.9 
128.7 
137.3 
36.4 
100.7 
148.3 
172.6 
117.4 
25.9 
(69.5)
81.6 
(3.7)
(2.4)
(3.3)
(6.1)
(42.2)
(49.7)
(75.8)
(102.6)
152.1 
172.4 
297.2 
32.8 
62.7 
143.6 
128.6 
28.4 
100.7 
148.3 
172.6 
117.4 
31.1 
(67.4)
75.8 
(5.2)
(0.2)
(2.4)
(4.0)
(5.2)
(42.2)
(49.7)
(75.8)
(102.6)
Income tax benefit (expense)
(36.4)
(30.0)
(41.2)
(32.0)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
(13.7)
(32.7)
(34.1)
(3.5)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
(14.8)
(37.2)
(30.0)
(2.0)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Net income (loss) attributable to Molson Coors Brewing Company
$ 290.9 
$ 267.3 1
$ 454.3 
$ 295.8 1
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
$ 131.5 
$ 121.8 
$ 278.4 
$ 35.6 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
$ 137.2 
$ 134.3 
$ 267.3 
$ 28.5 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Diluted net income (loss) attributable to Molson Coors Brewing Company per share
$ 1.56 2
$ 1.45 1 2
$ 2.45 2
$ 1.61 1 2
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
$ 0.71 
$ 0.66 
$ 1.51 
$ 0.20 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
$ 0.74 
$ 0.73 
$ 1.45 
$ 0.16 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Basis of Presentation and Summary of Significant Accounting Policies Foreign Currency Translation (Details) (USD $)
In Millions, unless otherwise specified
3 Months Ended 6 Months Ended
Jun. 30, 2014
Jun. 29, 2013
Jun. 30, 2014
Jun. 29, 2013
Total other comprehensive income (loss), net of tax
$ 162.5 
$ (86.7)
$ 1.0 
$ (347.9)
Comprehensive income (loss) attributable to Molson Coors Brewing Company
453.4 
180.6 
455.3 
(52.1)
As Reported [Member]
 
 
 
 
Foreign currency translation adjustments, net of tax
 
(79.4)
 
(340.7)
Total other comprehensive income (loss), net of tax
 
(52.5)
 
(294.3)
Comprehensive income (loss) attributable to Molson Coors Brewing Company
 
225.9 
 
19.7 
As Adjusted [Member]
 
 
 
 
Foreign currency translation adjustments, net of tax
 
(113.6)
 
(394.3)
Total other comprehensive income (loss), net of tax
 
(86.7)
 
(347.9)
Comprehensive income (loss) attributable to Molson Coors Brewing Company
 
$ 180.6 
 
$ (52.1)
New Accounting Pronouncements New Accounting Pronouncements (Details) (USD $)
In Millions, unless otherwise specified
6 Months Ended
Jun. 30, 2014
New Accounting Pronouncements and Changes in Accounting Principles [Abstract]
 
Reduction of unrecognized tax benefits
$ 37.8 
Segment Reporting Net Sales (Details) (USD $)
In Millions, unless otherwise specified
3 Months Ended 6 Months Ended
Jun. 30, 2014
Jun. 29, 2013
Jun. 30, 2014
Jun. 29, 2013
Segment Reporting
 
 
 
 
Net sales
$ 1,188.5 
$ 1,178.0 
$ 2,004.5 
$ 2,006.5 
Maximum percentage of sales accounted for by a single customer (as a percent)
 
 
10.00% 
 
Canada [Member]
 
 
 
 
Segment Reporting
 
 
 
 
Net sales
516.5 
558.2 
863.6 
953.8 
Europe [Member]
 
 
 
 
Segment Reporting
 
 
 
 
Net sales
629.4 
586.2 
1,067.0 
992.6 
MCI [Member]
 
 
 
 
Segment Reporting
 
 
 
 
Net sales
43.7 
34.7 
75.9 
61.7 
Corporate [Member]
 
 
 
 
Segment Reporting
 
 
 
 
Net sales
0.4 
0.3 
0.7 
0.6 
Intersegment sales elimination
 
 
 
 
Segment Reporting
 
 
 
 
Net sales
$ (1.5)1
$ (1.4)1
$ (2.7)1
$ (2.2)1
Segment Reporting Income (Loss) From Continuing Operations (Details) (USD $)
In Millions, unless otherwise specified
3 Months Ended 6 Months Ended
Jun. 30, 2014
Jun. 29, 2013
Jun. 30, 2014
Jun. 29, 2013
Segment Reporting
 
 
 
 
Income (loss) from continuing operations before income taxes
$ 329.3 
$ 297.2 1
$ 498.9 
$ 330.0 1
Canada [Member]
 
 
 
 
Segment Reporting
 
 
 
 
Income (loss) from continuing operations before income taxes
120.8 
128.6 1
209.1 
157.0 1
U.S. [Member]
 
 
 
 
Segment Reporting
 
 
 
 
Income (loss) from continuing operations before income taxes
190.1 
172.6 1
312.9 
290.0 1
Europe [Member]
 
 
 
 
Segment Reporting
 
 
 
 
Income (loss) from continuing operations before income taxes
84.5 
75.8 1
111.5 
70.6 1
MCI [Member]
 
 
 
 
Segment Reporting
 
 
 
 
Income (loss) from continuing operations before income taxes
(3.7)
(4.0)1
(6.7)
(9.2)1
Corporate [Member]
 
 
 
 
Segment Reporting
 
 
 
 
Income (loss) from continuing operations before income taxes
$ (62.4)
$ (75.8)1
$ (127.9)
$ (178.4)1
Segment Reporting Total Assets (Details) (USD $)
In Millions, unless otherwise specified
Jun. 30, 2014
Dec. 31, 2013
Segment Reporting Information [Line Items]
 
 
Total assets
$ 15,873.0 
$ 15,580.1 
Canada [Member]
 
 
Segment Reporting Information [Line Items]
 
 
Total assets
6,068.3 
6,103.2 
U.S. [Member]
 
 
Segment Reporting Information [Line Items]
 
 
Total assets
2,598.6 
2,506.5 
Europe [Member]
 
 
Segment Reporting Information [Line Items]
 
 
Total assets
6,863.9 
6,547.7 
MCI [Member]
 
 
Segment Reporting Information [Line Items]
 
 
Total assets
86.0 
83.3 
Corporate [Member]
 
 
Segment Reporting Information [Line Items]
 
 
Total assets
$ 256.2 
$ 339.4 
Investments Financials (Details) (USD $)
In Millions, unless otherwise specified
3 Months Ended 6 Months Ended
Jun. 30, 2014
Jun. 30, 2013
Jun. 29, 2013
Jun. 30, 2014
Jun. 30, 2013
Jun. 29, 2013
Dec. 31, 2013
Equity Method Investment, Summarized Financial Information, Liabilities and Equity [Abstract]
 
 
 
 
 
 
 
Total equity
$ 8,985.1 
 
 
$ 8,985.1 
 
 
$ 8,630.1 
MillerCoors
 
 
 
 
 
 
 
Condensed balance sheets
 
 
 
 
 
 
 
Current assets
1,007.5 
 
 
1,007.5 
 
 
798.4 
Noncurrent assets
8,945.9 
 
 
8,945.9 
 
 
8,989.3 
Total assets
9,953.4 
 
 
9,953.4 
 
 
9,787.7 
Current liabilities
998.3 
 
 
998.3 
 
 
950.1 
Noncurrent liabilities
1,247.2 
 
 
1,247.2 
 
 
1,346.2 
Total liabilities
2,245.5 
 
 
2,245.5 
 
 
2,296.3 
Noncontrolling interests
23.4 
 
 
23.4 
 
 
20.7 
Owners' equity
7,684.5 
 
 
7,684.5 
 
 
7,470.7 
Total liabilities and equity
9,953.4 
 
 
9,953.4 
 
 
9,787.7 
Equity Method Investment, Summarized Financial Information, Liabilities and Equity [Abstract]
 
 
 
 
 
 
 
Total equity
7,684.5 
 
 
7,684.5 
 
 
7,470.7 
MCBC economic interest
42.00% 
 
42.00% 
42.00% 
 
42.00% 
42.00% 
MCBC proportionate share of MillerCoors equity
3,227.5 
 
 
3,227.5 
 
 
3,137.7 
Difference between MCBC contributed cost basis and proportional share of the underlying equity in net assets of MillerCoors
(663.9)1
 
 
(663.9)1
 
 
(666.2)1
Investment in MillerCoors
2,598.6 
 
 
2,598.6 
 
 
2,506.5 
Results of operations
 
 
 
 
 
 
 
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 
412.7 
736.4 
684.6 
684.6 
 
Parent Company [Member]
 
 
 
 
 
 
 
Equity Method Investment, Summarized Financial Information, Liabilities and Equity [Abstract]
 
 
 
 
 
 
 
Equity Method Investment, Difference From Accounting Policy Elections
$ 35.0 
 
 
$ 35.0 
 
 
$ 35.0 
Investments Proportional (Details) (USD $)
In Millions, unless otherwise specified
3 Months Ended 6 Months Ended
Jun. 30, 2014
Jun. 30, 2013
Jun. 29, 2013
Jun. 30, 2014
Jun. 30, 2013
Jun. 29, 2013
Dec. 31, 2013
Schedule of Equity Method Investments [Line Items]
 
 
 
 
 
 
 
Equity income in MillerCoors
$ 190.1 
 
$ 172.6 
$ 312.9 
 
$ 290.0 
 
MillerCoors
 
 
 
 
 
 
 
Schedule of Equity Method Investments [Line Items]
 
 
 
 
 
 
 
Net income attributable to MillerCoors
445.2 
412.7 
412.7 
736.4 
684.6 
684.6 
 
MCBC economic interest
42.00% 
 
42.00% 
42.00% 
 
42.00% 
42.00% 
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 proportional share of the underlying equity in the net assets of MillerCoors
1.2 
 
1.0 
2.3 
 
2.2 
 
Share-based compensation adjustment
1.9 1
 
(1.7)1
1.3 1
 
0.3 1
 
Equity income in MillerCoors
$ 190.1 
 
$ 172.6 
$ 312.9 
 
$ 290.0 
 
Investments Transactions with MillerCoors (Details) (MillerCoors, USD $)
In Millions, unless otherwise specified
3 Months Ended 6 Months Ended
Jun. 30, 2014
Jun. 29, 2013
Jun. 30, 2014
Jun. 29, 2013
MillerCoors
 
 
 
 
Schedule of Equity Method Investments [Line Items]
 
 
 
 
Sales of beer to MillerCoors
$ 3.7 
$ 4.5 
$ 6.3 
$ 8.9 
Purchases of beer from MillerCoors
9.1 
3.9 
16.2 
7.0 
Service agreement and other charges to MillerCoors
0.7 
0.7 
1.1 
1.3 
Service agreement costs from MillerCoors
$ 0.3 
$ 0 
$ 0.5 
$ 0.2 
Investments Other Equity Method Investments (Details)
In Millions, unless otherwise specified
3 Months Ended 6 Months Ended 0 Months Ended 3 Months Ended 6 Months Ended 3 Months Ended 6 Months Ended 3 Months Ended 6 Months Ended
Jun. 30, 2014
USD ($)
Jun. 29, 2013
USD ($)
Jun. 30, 2014
USD ($)
Jun. 29, 2013
USD ($)
Nov. 5, 2013
Modelo Molson Imports L P MMI [Member]
CAD ($)
Jun. 29, 2013
Modelo Molson Imports L P MMI [Member]
USD ($)
Jun. 30, 2014
Modelo Molson Imports L P MMI [Member]
USD ($)
Jun. 29, 2013
Modelo Molson Imports L P MMI [Member]
USD ($)
Dec. 31, 2013
Modelo Molson Imports L P MMI [Member]
USD ($)
Jun. 30, 2014
Modelo [Member]
USD ($)
Mar. 31, 2014
Modelo [Member]
USD ($)
Jun. 29, 2013
Modelo [Member]
USD ($)
Jun. 30, 2014
Modelo [Member]
USD ($)
Jun. 29, 2013
Modelo [Member]
USD ($)
Jun. 30, 2014
Licensing Agreements [Member]
USD ($)
Jun. 30, 2014
Canada [Member]
Licensing Agreements [Member]
USD ($)
Dec. 31, 2013
Canada [Member]
Licensing Agreements [Member]
USD ($)
Jun. 29, 2013
Canada [Member]
Licensing Agreements [Member]
USD ($)
Jun. 30, 2014
Canada [Member]
Licensing Agreements [Member]
USD ($)
Jun. 29, 2013
Canada [Member]
Licensing Agreements [Member]
USD ($)
Schedule of Equity Method Investments [Line Items]
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Subsidiary or Equity Method Investee, Cumulative Percentage Ownership after All Transactions
 
 
 
 
 
 
50.00% 
 
 
 
 
 
50.00% 
 
 
 
 
 
 
 
Joint Venture Agreement, Maturity Term
 
 
 
 
10 years 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Proceeds from Divestiture of Interest in Joint Venture
 
 
 
 
 
 
 
 
 
$ 0 1
$ (63.2)
$ 0 1
$ 63.2 1
$ 0 1
 
 
 
 
 
 
Gain on early termination of joint venture
 
 
 
 
70.0 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Finite-Lived License Agreements, Gross
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
40.5 
 
 
 
Amortization of Intangible Assets
10.4 
11.7 
21.0 
23.6 
 
 
 
 
 
 
 
 
 
 
 
1
 
1
4.9 1
1
Impairment of Intangible Assets, Finite-lived
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
17.9 
 
 
 
Equity Method Investment, Summarized Financial Information, Liabilities and Equity
 
 
 
 
 
 
10.6 
 
21.2 
 
 
 
 
 
 
 
 
 
 
 
Equity Method Investments, Intercompany Transactions, Net Payables Due
 
 
 
 
 
 
4.7 
 
13.8 
 
 
 
 
 
 
 
 
 
 
 
Finite-Lived Intangible Assets, Net
 
 
 
 
 
 
 
 
 
 
 
 
 
 
32.0 
 
4.9 
 
 
 
Income (Loss) from Equity Method Investments
 
 
2.7 
7.8 
 
4.5 
0.7 
5.1 
 
 
 
 
 
 
 
 
 
 
 
 
Related Party Transaction, Selling, General and Administrative Expenses from Transactions with Related Party
 
 
 
 
 
$ 3.3 
$ 1.1 
$ 5.7 
 
 
 
 
 
 
 
 
 
 
 
 
Investments Variable Interest Entity (Details) (USD $)
In Millions, unless otherwise specified
Jun. 30, 2014
Dec. 31, 2013
Grolsch
 
 
Variable Interest Entity
 
 
Total Assets
$ 8.5 
$ 5.6 
Total Liabilities
3.1 
1.7 
Cobra
 
 
Variable Interest Entity
 
 
Total Assets
29.4 
36.5 
Total Liabilities
$ 0.6 
$ 1.9 
Investments Narrative (Details) (USD $)
In Millions, unless otherwise specified
3 Months Ended 6 Months Ended
Jun. 30, 2014
VIE
Dec. 31, 2013
VIE
Jun. 30, 2014
MillerCoors
Dec. 31, 2013
MillerCoors
Jun. 30, 2014
Modelo [Member]
Mar. 31, 2014
Modelo [Member]
Jun. 29, 2013
Modelo [Member]
Jun. 30, 2014
Modelo [Member]
Jun. 29, 2013
Modelo [Member]
Jun. 30, 2014
Licensing Agreements [Member]
Dec. 31, 2013
Canada [Member]
Licensing Agreements [Member]
Schedule of Equity Method Investments [Line Items]
 
 
 
 
 
 
 
 
 
 
 
Finite-Lived Intangible Assets, Net
 
 
 
 
 
 
 
 
 
$ 32.0 
$ 4.9 
Proceeds from Divestiture of Interest in Joint Venture
 
 
 
 
1
63.2 
1
(63.2)1
1
 
 
Number of Variable Interest Entities with Debt
 
 
 
 
 
 
 
 
 
Net payables due to MillerCoors
 
 
$ 8.1 
$ 4.4 
 
 
 
 
 
 
 
Share-Based Payments Compensation Expense (Details) (USD $)
In Millions, unless otherwise specified
3 Months Ended 6 Months Ended
Jun. 30, 2014
Jun. 29, 2013
Jun. 30, 2014
Jun. 29, 2013
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
 
 
 
 
Excess Tax Benefit (Tax Deficiency) from Share-based Compensation, Operating Activities
 
 
$ 3.2 
$ 5.4 
Options and Sosars [Member]
 
 
 
 
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
 
 
 
 
Pre-tax compensation expense (in dollars)
3.8 
4.3 
12.1 
15.4 
Tax benefit (in dollars)
(1.2)
(1.1)
(3.9)
(4.5)
After-tax compensation expense (in dollars)
2.6 
3.2 
8.2 
10.9 
Gross [Member] |
Options and Sosars [Member]
 
 
 
 
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
 
 
 
 
Tax Benefit from Stock Options Exercised
 
 
$ 3.2 
$ 5.4 
Share-Based Payments Stock Options (Details) (Options and Sosars [Member], USD $)
In Millions, except Per Share data, unless otherwise specified
6 Months Ended 12 Months Ended 6 Months Ended
Jun. 30, 2014
Dec. 31, 2013
Jun. 30, 2014
Gross [Member]
Jun. 29, 2013
Gross [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
 
 
 
 
Tax Benefit from Stock Options Exercised
 
 
$ 3.2 
$ 5.4 
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding [Roll Forward]
 
 
 
 
Outstanding at the beginning of the period (in shares)
3.5 
 
 
 
Granted (in shares)
0.2 
 
 
 
Exercised (in shares)
(0.9)
 
 
 
Forfeited (in shares)
(0.1)
 
 
 
Outstanding at the end of the period (in shares)
2.7 
3.5 
 
 
Exercisable (in shares)
2.3 
 
 
 
Weighted-average exercise price of shares outstanding, beginning of the period (in dollars per share)
$ 43.41 
 
 
 
Weighted-average exercise price of shares granted (in dollars per share)
$ 58.24 
 
 
 
Weighted-average exercise price of shares exercised (in dollars per share)
$ 43.50 
 
 
 
Weighted-average exercise price of shares forfeited (in dollars per share)
$ 44.24 
 
 
 
Weighted-average exercise price of shares outstanding, end of the period (in dollars per share)
$ 44.28 
$ 43.41 
 
 
Weighted-average exercise price of shares exercisable (in dollars per share)
$ 43.34 
 
 
 
Weighted-average remaining contractual life, outstanding (in years)
4 years 9 months 
4 years 6 months 25 days 
 
 
Weighted-average remaining contractual life, exercisable (in years)
4 years 
 
 
 
Aggregate intrinsic value of shares outstanding (in dollars)
45.1 
 
 
 
Aggregate intrinsic value of shares outstanding (in dollars)
79.9 
45.1 
 
 
Aggregate intrinsic value of shares exercisable (in dollars)
$ 69.5 
 
 
 
Share-Based Payments Non-vested (Details) (USD $)
Share data in Millions, except Per Share data, unless otherwise specified
6 Months Ended 6 Months Ended
Jun. 30, 2014
Rsus and Dsus [Member]
Jun. 30, 2014
PUs [Member]
Dec. 31, 2013
PUs [Member]
Jun. 30, 2014
PSUs [Member]
Jun. 29, 2013
PSUs [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
 
 
 
 
 
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Intrinsic Value, Amount Per Share
 
$ 0.45 
$ 2.87 
$ 46.10 
 
Non-vested awards outstanding at the beginning of the period (in shares)
0.7 
1.0 
 
0.2 
 
Granted (in shares)
0.2 
 
0.2 
 
Vested (in shares)
(0.2)
(0.5)
 
 
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Vested in Period, Fair Value
 
$ 6.12 
 
 
 
Forfeited (in shares)
 
 
Non-vested awards outstanding at the end of the period (in shares)
0.7 
0.5 
 
0.4 
 
Non-vested, weighted-average grant date fair value at the beginning of the period (in dollars per unit)
$ 42.08 
 
 
$ 43.10 
 
Granted, weighted-average grant date fair value (in dollars per unit)
$ 59.02 
$ 0.00 
 
$ 58.69 
$ 43.10 
Vested, weighted-average grant date fair value (in dollars per unit)
$ 41.01 
 
 
$ 0.00 
 
Forfeited, weighted-average grant date fair value (in dollars per unit)
$ 0.00 
$ 0.00 
 
$ 0.00 
 
Non-vested, weighted-average grant date fair value at the end of the period (in dollars per unit)
$ 47.42 
 
 
$ 50.49 
 
Share-Based Payments Weighted Average Assumptions (Details)
6 Months Ended
Jun. 30, 2014
Jun. 29, 2013
Options and Sosars [Member]
 
 
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
 
 
Risk-free interest rate (as a percent)
2.29% 
1.43% 
Dividend yield (as a percent)
2.57% 
2.88% 
Weighted-average volatility (as a percent)
25.59% 
25.02% 
Expected term
7 years 6 months 
7 years 8 months 12 days 
Weighted-average fair market value (in dollars per share)
$ 12.78 
$ 8.39 
Options and Sosars [Member] |
Minimum [Member]
 
 
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
 
 
Volatility rate (percent)
22.66% 
22.39% 
Options and Sosars [Member] |
Maximum [Member]
 
 
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
 
 
Volatility rate (percent)
26.57% 
25.90% 
Performance Shares [Member] |
Minimum [Member]
 
 
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
 
 
Volatility rate (percent)
12.45% 
12.18% 
Performance Shares [Member] |
Maximum [Member]
 
 
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
 
 
Volatility rate (percent)
72.41% 
69.37% 
Share-Based Payments Narrative (Details) (USD $)
In Millions, except Per Share data, unless otherwise specified
6 Months Ended
Jun. 30, 2014
Jun. 29, 2013
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
 
 
Total unrecognized compensation expense related to non-vested shares from share-based compensation arrangements (in dollars)
$ 24.7 
 
Weighted-average period over which compensation expense is expected to be recognized (in years)
1 year 4 months 24 days 
 
Proceeds from Stock Plans
27.7 
63.1 
Class B common stock, non-voting [Member]
 
 
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
 
 
Stock approved by Board of Directors and available for issuance (in shares)
7.4 
 
Options and Sosars [Member]
 
 
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
 
 
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercises in Period, Total Intrinsic Value
15.0 
23.5 
Proceeds from Stock Plans
27.7 
63.1 
Expected term
7 years 6 months 
7 years 8 months 12 days 
Risk-free interest rate (percent)
2.29% 
1.43% 
Dividend yield (percent)
2.57% 
2.88% 
Rsus and Dsus [Member]
 
 
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
 
 
Grant date fair value
$ 59.02 
 
PUs [Member]
 
 
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
 
 
Grant date fair value
$ 0.00 
 
PSUs [Member]
 
 
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
 
 
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Period
3 years 
 
Grant date fair value
$ 58.69 
$ 43.10 
Expected term
2 years 9 months 26 days 
2 years 9 months 29 days 
Volatility rate (percent)
21.72% 
21.13% 
Risk-free interest rate (percent)
0.72% 
0.33% 
Dividend yield (percent)
2.57% 
2.88% 
Minimum [Member] |
Options and Sosars [Member]
 
 
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
 
 
Volatility rate (percent)
22.66% 
22.39% 
Maximum [Member] |
Options and Sosars [Member]
 
 
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
 
 
Volatility rate (percent)
26.57% 
25.90% 
Gross [Member] |
Options and Sosars [Member]
 
 
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
 
 
Tax Benefit from Stock Options Exercised
$ 3.2 
$ 5.4 
Special items Summary Special Items (Details) (USD $)
In Millions, unless otherwise specified
3 Months Ended 6 Months Ended 12 Months Ended 3 Months Ended 6 Months Ended 3 Months Ended 6 Months Ended 3 Months Ended 6 Months Ended 3 Months Ended 6 Months Ended 3 Months Ended 6 Months Ended 3 Months Ended 6 Months Ended 3 Months Ended 6 Months Ended 3 Months Ended 6 Months Ended 3 Months Ended 6 Months Ended 3 Months Ended 6 Months Ended
Jun. 30, 2014
Jun. 29, 2013
Jun. 30, 2014
Jun. 29, 2013
Dec. 26, 2009
Jun. 30, 2014
Canada [Member]
Restructuring [Member]
Jun. 29, 2013
Canada [Member]
Restructuring [Member]
Jun. 30, 2014
Canada [Member]
Restructuring [Member]
Jun. 29, 2013
Canada [Member]
Restructuring [Member]
Jun. 30, 2014
Canada [Member]
Special termination benefits [Member]
Jun. 29, 2013
Canada [Member]
Special termination benefits [Member]
Jun. 30, 2014
Canada [Member]
Special termination benefits [Member]
Jun. 29, 2013
Canada [Member]
Special termination benefits [Member]
Jun. 30, 2014
Europe [Member]
Restructuring [Member]
Jun. 29, 2013
Europe [Member]
Restructuring [Member]
Jun. 30, 2014
Europe [Member]
Restructuring [Member]
Jun. 29, 2013
Europe [Member]
Restructuring [Member]
Jun. 30, 2014
Europe [Member]
Release of non-income-related tax reserve [Member]
Jun. 29, 2013
Europe [Member]
Release of non-income-related tax reserve [Member]
Jun. 30, 2014
Europe [Member]
Release of non-income-related tax reserve [Member]
Jun. 29, 2013
Europe [Member]
Release of non-income-related tax reserve [Member]
Jun. 30, 2014
Europe [Member]
Flood loss [Member]
Jun. 29, 2013
Europe [Member]
Flood loss [Member]
Jun. 30, 2014
Europe [Member]
Flood loss [Member]
Jun. 29, 2013
Europe [Member]
Flood loss [Member]
Jun. 30, 2014
MCI [Member]
Restructuring [Member]
Jun. 29, 2013
MCI [Member]
Restructuring [Member]
Jun. 30, 2014
MCI [Member]
Restructuring [Member]
Jun. 29, 2013
MCI [Member]
Restructuring [Member]
Jun. 30, 2014
MCI [Member]
Sale of China Joint Venture [Member]
Jun. 29, 2013
MCI [Member]
Sale of China Joint Venture [Member]
Jun. 30, 2014
MCI [Member]
Sale of China Joint Venture [Member]
Jun. 29, 2013
MCI [Member]
Sale of China Joint Venture [Member]
Jun. 30, 2014
Corporate [Member]
Restructuring [Member]
Jun. 29, 2013
Corporate [Member]
Restructuring [Member]
Jun. 30, 2014
Corporate [Member]
Restructuring [Member]
Jun. 29, 2013
Corporate [Member]
Restructuring [Member]
Jun. 30, 2014
Modelo [Member]
Mar. 31, 2014
Modelo [Member]
Jun. 29, 2013
Modelo [Member]
Jun. 30, 2014
Modelo [Member]
Jun. 29, 2013
Modelo [Member]
Jun. 30, 2014
Licensing Agreements [Member]
Canada [Member]
Jun. 29, 2013
Licensing Agreements [Member]
Canada [Member]
Jun. 30, 2014
Licensing Agreements [Member]
Canada [Member]
Jun. 29, 2013
Licensing Agreements [Member]
Canada [Member]
Restructuring Cost and Reserve [Line Items]
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Total special items
$ 2.7 
$ 1.3 
$ (49.8)
$ 2.8 
 
$ 0.1 
$ 0.1 
$ 5.4 
$ 1.4 
$ 0 
$ 0.6 
$ 0 
$ 1.4 
$ 0.5 
$ (0.3)
$ 1.0 
$ 3.0 
$ 0 1
$ 0 1
$ 0 1
$ (4.2)1
$ 1.8 2
$ 0 2
$ 1.8 2
$ 0 2
$ 0 
$ 0.1 
$ 0 
$ 0.1 
$ 0 
$ 0.8 
$ 0 
$ 0.8 
$ 0.3 
$ 0 
$ 0.3 
$ 0.3 
 
 
 
 
 
 
 
 
 
Intangible asset write-off
10.4 
11.7 
21.0 
23.6 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
3
3
4.9 3
3
Termination fee income
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
3
63.2 
3
(63.2)3
3
 
 
 
 
Non-income-related tax reserve
 
 
 
 
$ 10.4 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Other Income and Expense (Details) (USD $)
3 Months Ended 6 Months Ended 3 Months Ended 6 Months Ended 3 Months Ended 6 Months Ended 3 Months Ended 6 Months Ended 3 Months Ended 6 Months Ended 3 Months Ended 6 Months Ended 3 Months Ended 6 Months Ended
Jun. 30, 2014
Jun. 29, 2013
Jun. 30, 2014
Jun. 29, 2013
Jun. 30, 2014
Other Foreign Exchange and Derivative Activity [Member]
Jun. 29, 2013
Other Foreign Exchange and Derivative Activity [Member]
Jun. 30, 2014
Other Foreign Exchange and Derivative Activity [Member]
Jun. 29, 2013
Other Foreign Exchange and Derivative Activity [Member]
Jun. 30, 2014
Sale of Non-operating Asset [Member]
Jun. 29, 2013
Sale of Non-operating Asset [Member]
Jun. 30, 2014
Sale of Non-operating Asset [Member]
Jun. 29, 2013
Sale of Non-operating Asset [Member]
Jun. 30, 2014
Other Foreign Exchange and Derivative Activity [Member]
Jun. 29, 2013
Other Foreign Exchange and Derivative Activity [Member]
Jun. 30, 2014
Other Foreign Exchange and Derivative Activity [Member]
Jun. 29, 2013
Other Foreign Exchange and Derivative Activity [Member]
Jun. 30, 2014
Other income (expense), net [Member]
Jun. 29, 2013
Other income (expense), net [Member]
Jun. 30, 2014
Other income (expense), net [Member]
Jun. 29, 2013
Other income (expense), net [Member]
Mar. 30, 2013
Molson Coors Central Europe (MCCE)
Other Foreign Exchange and Derivative Activity [Member]
Jun. 30, 2014
Molson Coors Central Europe (MCCE)
Other Foreign Exchange and Derivative Activity [Member]
Jun. 29, 2013
Molson Coors Central Europe (MCCE)
Other Foreign Exchange and Derivative Activity [Member]
May 3, 2012
Senior Notes [Member]
Mar. 30, 2013
StarBev L.P. [Member]
Foreign Cash Positions and Foreign Exchange Contracts [Member]
Jun. 29, 2013
StarBev L.P. [Member]
Foreign Cash Positions and Foreign Exchange Contracts [Member]
Other income and expense:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Debt instrument, face amount
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
$ 1,900,000,000 
 
 
Other income (expense), net
700,000 
(7,300,000)
1,500,000 
(3,000,000)
 
 
 
 
1
1
1
1,200,000 1
500,000 2
(8,800,000)2
1,300,000 2
(6,100,000)2
200,000 
1,500,000 
200,000 
1,900,000 
 
 
 
 
 
 
Loss on foreign currency movements
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
(10,100,000)
500,000 
10,000,000 
 
 
 
Gain (Loss) on Foreign Currency Derivative Instruments Not Designated as Hedging Instruments
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
3,900,000 
(6,700,000)
Loss on derivatives, recognized in income
 
 
 
 
$ 500,000 
$ (2,600,000)
$ 800,000 
$ (9,400,000)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
[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.
Income Tax (Details) (USD $)
In Millions, unless otherwise specified
3 Months Ended 6 Months Ended
Jun. 30, 2014
Jun. 29, 2013
Jun. 30, 2014
Jun. 29, 2013
Dec. 31, 2013
Operating Loss Carryforwards [Line Items]
 
 
 
 
 
Effective tax rate (as a percent)
11.00% 
10.00% 
8.00% 
10.00% 
 
Federal statutory income tax rate (percent)
 
 
35.00% 
 
 
Net discrete tax benefit
$ 12.2 
 
 
 
 
Reduction in effective income tax rate
4.00% 
 
 
 
 
Unrecognized tax benefits
81.1 
 
81.1 
 
(149.6)
Restatement Adjustment [Member]
 
 
 
 
 
Operating Loss Carryforwards [Line Items]
 
 
 
 
 
Increase in current unrecognized tax benefits
19.3 
 
 
 
 
Increase in noncurrent unrecognized tax benefits
14.4 
 
 
 
 
Deferred tax liabilities [Member]
 
 
 
 
 
Operating Loss Carryforwards [Line Items]
 
 
 
 
 
Out of period adjustment
8.7 
 
 
 
 
Advanced pricing agreement [Member]
 
 
 
 
 
Operating Loss Carryforwards [Line Items]
 
 
 
 
 
Net discrete tax benefit
$ (21.0)
 
 
 
 
Earnings per Share ("EPS") Basic and Diluted (Details) (USD $)
In Millions, except Per Share data, unless otherwise specified
3 Months Ended 6 Months Ended
Jun. 30, 2014
Jun. 29, 2013
Jun. 30, 2014
Jun. 29, 2013
Amounts attributable to MCBC
 
 
 
 
Net income (loss) from continuing operations
$ 290.7 
$ 265.6 1
$ 456.0 
$ 295.0 1
Income (loss) from discontinued operations, net of tax
0.2 
1.7 1
(1.7)
0.8 1
Net income (loss) attributable to Molson Coors Brewing Company
$ 290.9 
$ 267.3 1
$ 454.3 
$ 295.8 1
Weighted average shares for basic EPS (in shares)
184.8 
182.9 
184.5 
182.3 
Effect of dilutive securities:
 
 
 
 
Weighted average shares for diluted EPS (in shares)
185.9 
184.1 
185.7 
183.5 
Basic net income (loss) per share:
 
 
 
 
Continuing operations attributable to MCBC (in dollars per share)
$ 1.57 2
$ 1.45 1 2
$ 2.47 2
$ 1.62 1 2
Discontinued operations attributable to MCBC (in dollars per share)
$ 0.00 2
$ 0.01 1 2
$ (0.01)2
$ 0.00 1 2
Net income attributable to MCBC (in dollars per share)
$ 1.57 2
$ 1.46 1 2
$ 2.46 2
$ 1.62 1 2
Diluted net income (loss) per share:
 
 
 
 
Continuing operations attributable to MCBC (in dollars per share)
$ 1.56 2
$ 1.44 1 2
$ 2.46 2
$ 1.61 1 2
Discontinued operations attributable to MCBC (in dollars per share)
$ 0.00 2
$ 0.01 1 2
$ (0.01)2
$ 0.00 1 2
Net income attributable to MCBC (in dollars per share)
$ 1.56 2
$ 1.45 1 2
$ 2.45 2
$ 1.61 1 2
Dividends declared per share (in dollars per share)
$ 0.37 
$ 0.32 
$ 0.74 
$ 0.64 
Options and Sosars [Member]
 
 
 
 
Effect of dilutive securities:
 
 
 
 
Effect of dilutive securities of Options, SOSAR's, RSU's, PU's, and DSU's
0.7 
0.7 
0.6 
0.7 
RSU PSU PU DSU [Member]
 
 
 
 
Effect of dilutive securities:
 
 
 
 
Effect of dilutive securities of Options, SOSAR's, RSU's, PU's, and DSU's
0.4 
0.5 
0.6 
0.5 
Earnings per Share ("EPS") Antidilutive (Details)
Share data in Millions, unless otherwise specified
3 Months Ended 6 Months Ended 3 Months Ended 6 Months Ended
Jun. 30, 2014
Jun. 29, 2013
Jun. 30, 2014
Jun. 29, 2013
Jun. 30, 2012
Convertible Senior Unsecured Note Due 2013 €500 Million 0.0% [Member]
EUR (€)
May 3, 2012
2.5% Convertible Senior Notes [Member]
USD ($)
Jun. 30, 2014
Stock options, SOSARs and RSUs
Jun. 29, 2013
Stock options, SOSARs and RSUs
Jun. 30, 2014
Stock options, SOSARs and RSUs
Jun. 29, 2013
Stock options, SOSARs and RSUs
Jun. 15, 2007
Convertible Senior Notes Due 2013 $575 Million 2.5% [Member]
2.5% Convertible Senior Notes [Member]
USD ($)
Anti-dilutive securities:
 
 
 
 
 
 
 
 
 
 
 
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount
0.1 
0.2 
0.2 
 
 
0.1 
0.2 
0.2 
 
Debt instrument, face amount
 
 
 
 
€ 500,000,000 
$ 1,900,000,000 
 
 
 
 
$ 575,000,000 
Goodwill and Intangible Assets (Details) (USD $)
In Millions, unless otherwise specified
6 Months Ended
Jun. 30, 2014
Dec. 31, 2013
Goodwill activity:
 
 
Balance at beginning of year
$ 2,418.7 
 
Foreign currency translation
22.0 
 
Balance at end of year
2,440.7 
 
Intangible Assets Gross, Excluding Goodwill
7,278.4 
7,338.8 
Canada [Member]
 
 
Goodwill [Line Items]
 
 
Percentage Of Fair Value Exceeding Carrying Value
16.00% 
 
Goodwill activity:
 
 
Balance at beginning of year
718.2 
 
Foreign currency translation
(3.2)
 
Balance at end of year
715.0 
 
Europe [Member]
 
 
Goodwill [Line Items]
 
 
Percentage Of Fair Value Exceeding Carrying Value
11.00% 
 
Goodwill activity:
 
 
Balance at beginning of year
1,693.2 
 
Foreign currency translation
25.1 
 
Balance at end of year
1,718.3 
 
MCI [Member]
 
 
Goodwill activity:
 
 
Balance at beginning of year
7.3 
 
Foreign currency translation
0.1 
 
Balance at end of year
$ 7.4 
 
Goodwill and Intangible Assets Intangible Assets (Details) (USD $)
In Millions, unless otherwise specified
3 Months Ended 6 Months Ended 12 Months Ended 6 Months Ended 12 Months Ended 6 Months Ended 12 Months Ended 6 Months Ended 12 Months Ended 6 Months Ended 12 Months Ended 6 Months Ended 12 Months Ended 6 Months Ended 12 Months Ended 6 Months Ended 12 Months Ended 6 Months Ended 12 Months Ended 6 Months Ended 12 Months Ended 3 Months Ended 6 Months Ended
Jun. 30, 2014
Jun. 29, 2013
Jun. 30, 2014
Jun. 29, 2013
Dec. 31, 2013
Jun. 30, 2014
Licensing Agreements [Member]
Jun. 30, 2014
Brands [Member]
Dec. 31, 2013
Brands [Member]
Jun. 30, 2014
Brands [Member]
Minimum [Member]
Dec. 31, 2013
Brands [Member]
Minimum [Member]
Jun. 30, 2014
Brands [Member]
Maximum [Member]
Dec. 31, 2013
Brands [Member]
Maximum [Member]
Jun. 30, 2014
Distribution Rights [Member]
Dec. 31, 2013
Distribution Rights [Member]
Jun. 30, 2014
Distribution Rights [Member]
Minimum [Member]
Dec. 31, 2013
Distribution Rights [Member]
Minimum [Member]
Jun. 30, 2014
Distribution Rights [Member]
Maximum [Member]
Dec. 31, 2013
Distribution Rights [Member]
Maximum [Member]
Jun. 30, 2014
Patents And Technology And Distribution Channels [Member]
Dec. 31, 2013
Patents And Technology And Distribution Channels [Member]
Jun. 30, 2014
Patents And Technology And Distribution Channels [Member]
Minimum [Member]
Dec. 31, 2013
Patents And Technology And Distribution Channels [Member]
Minimum [Member]
Jun. 30, 2014
Patents And Technology And Distribution Channels [Member]
Maximum [Member]
Dec. 31, 2013
Patents And Technology And Distribution Channels [Member]
Maximum [Member]
Jun. 30, 2014
Other [Member]
Dec. 31, 2013
Other [Member]
Jun. 30, 2014
Other [Member]
Minimum [Member]
Dec. 31, 2013
Other [Member]
Minimum [Member]
Jun. 30, 2014
Other [Member]
Maximum [Member]
Dec. 31, 2013
Other [Member]
Maximum [Member]
Jun. 30, 2014
License Agreement Terms [Member]
Minimum [Member]
Jun. 30, 2014
Other Intangible Assets [Member]
Dec. 31, 2013
Other Intangible Assets [Member]
Jun. 30, 2014
Distribution Networks [Member]
Dec. 31, 2013
Distribution Networks [Member]
Jun. 30, 2014
Brands [Member]
Dec. 31, 2013
Brands [Member]
Dec. 31, 2013
Europe [Member]
Brand Impairment [Member]
Jun. 30, 2014
Canada [Member]
Jun. 30, 2014
Canada [Member]
Licensing Agreements [Member]
Dec. 31, 2013
Canada [Member]
Licensing Agreements [Member]
Jun. 29, 2013
Canada [Member]
Licensing Agreements [Member]
Jun. 30, 2014
Canada [Member]
Licensing Agreements [Member]
Jun. 29, 2013
Canada [Member]
Licensing Agreements [Member]
Details of intangible assets, other than goodwill:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Finite-Lived License Agreements, Gross
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
$ 40.5 
 
 
 
Amortization of Intangible Assets
10.4 
11.7 
21.0 
23.6 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
1
 
1
4.9 1
1
Impairment of Intangible Assets, Finite-lived
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
17.9 
 
 
 
Impairment of Intangible Assets, Indefinite-lived (Excluding Goodwill)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
150.9 
 
 
 
 
 
 
Restructuring, Settlement and Impairment Provisions
2.7 
1.3 
(49.8)
2.8 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Percentage Of Fair Value Exceeding Carrying Value
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
16.00% 
 
 
 
 
 
Intangible assets subject to amortization:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Finite-Lived Intangible Assets, Gross
 
 
 
 
 
 
540.3 
537.5 
 
 
 
 
271.8 
314.1 
 
 
 
 
37.4 
36.2 
 
 
 
 
1.2 
1.2 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Total Gross
7,278.4 
 
7,278.4 
 
7,338.8 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Accumulated amortization
(501.2)
 
(501.2)
 
(513.7)
 
(239.7)
(224.7)
 
 
 
 
(225.9)
(255.0)
 
 
 
 
(34.4)
(32.8)
 
 
 
 
(1.2)
(1.2)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Net
 
 
 
 
 
32.0 
300.6 
312.8 
 
 
 
 
45.9 
59.1 
 
 
 
 
3.0 
3.4 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
4.9 
 
 
 
Total Net
6,777.2 
 
6,777.2 
 
6,825.1 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Indefinite-lived intangible assets
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
$ 17.5 
$ 15.2 
$ 948.0 
$ 952.3 
$ 5,462.2 
$ 5,482.3 
 
 
 
 
 
 
 
Useful life - minimum (in years)
 
 
 
 
 
 
 
 
3 years 
3 years 
40 years 
40 years 
 
 
2 years 
2 years 
23 years 
23 years 
 
 
3 years 
3 years 
10 years 
10 years 
 
 
2 years 
2 years 
2 years 
2 years 
3 years 
 
 
 
 
 
 
 
 
 
 
 
 
 
Goodwill and Intangible Assets Amortization Expense (Details) (USD $)
In Millions, unless otherwise specified
3 Months Ended 6 Months Ended 12 Months Ended
Jun. 30, 2014
event
Jun. 29, 2013
Jun. 30, 2014
Jun. 29, 2013
Dec. 31, 2013
Estimated amortization expense of finite-lived intangible assets
 
 
 
 
 
2014 - remaining
$ 21.3 
 
$ 21.3 
 
 
2015
40.2 
 
40.2 
 
 
2016
40.2 
 
40.2 
 
 
2017
14.1 
 
14.1 
 
 
2018
12.3 
 
12.3 
 
 
Amortization expense of intangible assets
10.4 
11.7 
21.0 
23.6 
 
Indefinite-lived Intangible Assets, Impairment Losses
 
 
 
 
Goodwill
2,440.7 
 
2,440.7 
 
2,418.7 
Number of events triggering potential impairment
 
 
 
 
Licensing Agreements [Member]
 
 
 
 
 
Estimated amortization expense of finite-lived intangible assets
 
 
 
 
 
Finite-Lived Intangible Assets, Net
32.0 
 
32.0 
 
 
Canada [Member]
 
 
 
 
 
Estimated amortization expense of finite-lived intangible assets
 
 
 
 
 
Percentage Of Fair Value Exceeding Carrying Value
16.00% 
 
16.00% 
 
 
Goodwill
715.0 
 
715.0 
 
718.2 
Canada [Member] |
Licensing Agreements [Member]
 
 
 
 
 
Estimated amortization expense of finite-lived intangible assets
 
 
 
 
 
Amortization expense of intangible assets
1
1
4.9 1
1
 
Finite-Lived Intangible Assets, Net
 
 
 
 
4.9 
Brands [Member]
 
 
 
 
 
Estimated amortization expense of finite-lived intangible assets
 
 
 
 
 
Indefinite-lived intangible assets
5,462.2 
 
5,462.2 
 
5,482.3 
Molson Core Brands [Member]
 
 
 
 
 
Estimated amortization expense of finite-lived intangible assets
 
 
 
 
 
Percentage Of Fair Value Exceeding Carrying Value
10.00% 
 
10.00% 
 
 
Indefinite-lived intangible assets
2,845.0 
 
2,845.0 
 
 
Jelen Ozujsko Branik [Member] [Member]
 
 
 
 
 
Estimated amortization expense of finite-lived intangible assets
 
 
 
 
 
Percentage Of Fair Value Exceeding Carrying Value
1.00% 
 
1.00% 
 
 
Indefinite-lived intangible assets
$ 1,302.5 
 
$ 1,302.5 
 
 
Debt Table (Details)
3 Months Ended 3 Months Ended 6 Months Ended 6 Months Ended 12 Months Ended 0 Months Ended 6 Months Ended 3 Months Ended 6 Months Ended
Jun. 30, 2014
USD ($)
Dec. 31, 2013
USD ($)
Jun. 30, 2014
Japanese Yen [Member]
USD ($)
Dec. 31, 2013
Japanese Yen [Member]
USD ($)
Jun. 30, 2014
Letters of credit [Member]
USD ($)
Jun. 30, 2014
Revolving credit facility [Member]
USD ($)
Jul. 1, 2014
Interest rate swaps [Member]
USD ($)
Jun. 30, 2014
Interest rate swaps [Member]
USD ($)
Jun. 30, 2014
Line of Credit [Member]
Revolving Multicurrency Bank Credit Facility [Member]
USD ($)
Jun. 30, 2012
Line of Credit [Member]
Revolving Multicurrency Bank Credit Facility [Member]
USD ($)
Jun. 30, 2014
Revolving Credit [Member]
USD ($)
Dec. 31, 2013
Revolving Credit [Member]
USD ($)
Dec. 31, 2013
Revolving Credit [Member]
EUR (€)
Apr. 3, 2012
Revolving Credit [Member]
USD ($)
May 3, 2012
Senior Notes [Member]
USD ($)
Jun. 15, 2007
Senior Notes [Member]
$575 million 2.5% convertible Senior Notes due 2013
USD ($)
Jun. 30, 2014
Senior Notes [Member]
Convertible Senior Unsecured Note Due 2013 €500 Million 0.0% [Member]
USD ($)
Dec. 31, 2013
Senior Notes [Member]
Convertible Senior Unsecured Note Due 2013 €500 Million 0.0% [Member]
USD ($)
Jun. 30, 2014
Senior Notes [Member]
Canadian dollar ("CAD") 900 million 5.0% notes due 2015
USD ($)
Dec. 31, 2013
Senior Notes [Member]
Canadian dollar ("CAD") 900 million 5.0% notes due 2015
USD ($)
Sep. 22, 2005
Senior Notes [Member]
Canadian dollar ("CAD") 900 million 5.0% notes due 2015
USD ($)
Jun. 30, 2014
Senior Notes [Member]
CAD 500 million 3.95% Series A notes due 2017
USD ($)
Dec. 31, 2013
Senior Notes [Member]
CAD 500 million 3.95% Series A notes due 2017
USD ($)
Oct. 6, 2010
Senior Notes [Member]
CAD 500 million 3.95% Series A notes due 2017
USD ($)
Jun. 30, 2014
Senior Notes [Member]
$300 million 2.0% notes due 2017
USD ($)
Dec. 31, 2013
Senior Notes [Member]
$300 million 2.0% notes due 2017
USD ($)
Jun. 30, 2014
Senior Notes [Member]
$500 million 3.5% notes due 2022 [Member]
USD ($)
Dec. 31, 2013
Senior Notes [Member]
$500 million 3.5% notes due 2022 [Member]
USD ($)
May 3, 2012
Senior Notes [Member]
$500 million 3.5% notes due 2022 [Member]
USD ($)
Jun. 30, 2014
Senior Notes [Member]
$500 million 3.5% notes due 2022 [Member]
Interest rate swaps [Member]
USD ($)
Jun. 30, 2014
Senior Notes [Member]
$1.1 billion 5.0% notes due 2042
USD ($)
Dec. 31, 2013
Senior Notes [Member]
$1.1 billion 5.0% notes due 2042
USD ($)
May 3, 2012
Senior Notes [Member]
5.0% Interest Rate, Maturing 2042 [Member]
USD ($)
Sep. 22, 2005
Senior Notes [Member]
5.0% Interest Rate, Maturing 2042 [Member]
May 3, 2012
Senior Notes [Member]
2.0% Interest Rate, Maturing 2017 [Member]
USD ($)
Jun. 30, 2014
Commercial Paper Program [Member]
USD ($)
Dec. 31, 2013
Commercial Paper Program [Member]
USD ($)
Sep. 3, 2013
Molson Coors Central Europe (MCCE)
Convertible Debt [Member]
Convertible Senior Unsecured Note Due 2013 €500 Million 0.0% [Member]
USD ($)
Sep. 3, 2013
Molson Coors Central Europe (MCCE)
Convertible Debt [Member]
Convertible Senior Unsecured Note Due 2013 €500 Million 0.0% [Member]
EUR (€)
Aug. 13, 2013
Molson Coors Central Europe (MCCE)
Convertible Debt [Member]
Convertible Senior Unsecured Note Due 2013 €500 Million 0.0% [Member]
EUR (€)
Jun. 30, 2014
Molson Coors Central Europe (MCCE)
Convertible Debt [Member]
Convertible Senior Unsecured Note Due 2013 €500 Million 0.0% [Member]
USD ($)
Jun. 30, 2014
Molson Coors Central Europe (MCCE)
Convertible Debt [Member]
Convertible Senior Unsecured Note Due 2013 €500 Million 0.0% [Member]
EUR (€)
Dec. 31, 2013
Molson Coors Central Europe (MCCE)
Convertible Debt [Member]
Zero Coupon Senior Unsecured Note [Member]
USD ($)
Dec. 31, 2013
Molson Coors Central Europe (MCCE)
Convertible Debt [Member]
Zero Coupon Senior Unsecured Note [Member]
EUR (€)
Aug. 13, 2013
Molson Coors Central Europe (MCCE)
Convertible Debt [Member]
Zero Coupon Senior Unsecured Note [Member]
EUR (€)
Jun. 15, 2012
Molson Coors Central Europe (MCCE)
Convertible Debt [Member]
Zero Coupon Senior Unsecured Note [Member]
EUR (€)
Jun. 30, 2013
Equity conversion feature of debt
Molson Coors Central Europe (MCCE)
Convertible Debt [Member]
Zero Coupon Senior Unsecured Note [Member]
USD ($)
Jun. 30, 2013
Equity conversion feature of debt
Molson Coors Central Europe (MCCE)
Convertible Debt [Member]
Zero Coupon Senior Unsecured Note [Member]
USD ($)
Jun. 30, 2014
Central Europe [Member]
USD ($)
Jun. 30, 2014
Central Europe [Member]
Line of Credit [Member]
EUR (€)
Jun. 30, 2014
Central Europe [Member]
Factoring arrangement [Member]
USD ($)
Dec. 31, 2013
Central Europe [Member]
Factoring arrangement [Member]
USD ($)
Debt Instrument [Line Items]
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Debt Conversion, Converted Instrument, Amount
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
$ 614,700,000 
€ 466,000,000 
 
 
 
 
 
 
 
 
 
 
 
 
 
Unrealized Gain (Loss) on Derivatives
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
2,700,000 
(26,800,000)
 
 
 
 
Total long-term debt (including current portion) before unamortized discounts and other
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
1
61,800,000 1
843,400,000 
847,200,000 
 
468,600,000 
470,700,000 
 
300,000,000 
300,000,000 
501,200,000 2
500,000,000 2
500,000,000 
 
1,100,000,000 
1,100,000,000 
 
 
 
 
 
 
 
 
 
 
 
 
510,900,000 
 
 
 
 
 
 
 
Loss on interest rate swaps, change in carrying value
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
(1,200,000)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Derivative, notional amount
 
 
 
 
 
 
200,000,000 
300,000,000 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Other long-term debt
100,000 
200,000 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Commercial Paper Outstanding, Amount
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
301,100,000 
379,800,000 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Short-term debt, weighted average interest rate
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
0.38% 
0.49% 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Weighted average interest rate, term
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
710 hours 
1133 hours 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Credit facilities
3
3
4,400,000 
3,100,000 
 
 
 
 
 
 
137,400,000 
100,000,000 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Line of credit facility, term
5 years 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Less: unamortized debt discounts and other
(4,700,000)
(5,100,000)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Total long-term debt (including current portion)
3,208,600,000 
3,274,800,000 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Current portion of long-term debt
(61,800,000)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
(61,800,000)
(44,900,000)
 
 
 
 
 
 
 
 
Total long-term debt
3,208,600,000 
3,213,000,000 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Short-term debt
451,600,000 3
525,100,000 3
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Current portion of long-term debt and short-term borrowings
451,600,000 
586,900,000 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Debt instrument, face amount
 
 
 
 
 
 
 
 
 
 
 
 
 
 
1,900,000,000 
575,000,000 
 
 
 
 
900,000,000 
 
 
500,000,000 
 
 
 
 
 
 
 
 
1,100,000,000 
 
300,000,000 
 
 
 
 
 
 
 
 
 
 
500,000,000 
 
 
 
 
 
 
Debt instrument, interest rate percentage
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
3.95% 
 
 
 
 
3.50% 
 
 
 
5.00% 
5.00% 
2.00% 
 
 
 
 
 
 
 
 
 
 
0.00% 
 
 
 
 
 
 
Business Combination, Payment of Claim Settlement
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
61,400,000 
44,900,000 
 
 
 
 
 
 
 
 
 
 
Debt Instrument, Convertible, Beneficial Conversion Feature
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
14,400,000 
 
10,900,000 
 
 
 
 
 
 
 
 
 
 
 
 
Long-term Debt - Portion of Principal Repayment
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
600,300,000 
455,100,000 
 
 
 
 
 
 
 
 
 
 
 
 
 
Line of Credit Facility, Maximum Borrowing Capacity
750,000,000 
 
 
 
100,000,000 
 
 
 
 
400,000,000 
 
 
 
550,000,000 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
150,000,000 
 
 
Accelerated amortization of debt issuance costs
 
 
 
 
 
1,300,000 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Debt issuance costs
 
 
 
 
 
1,800,000 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Line of Credit Facility, Remaining Borrowing Capacity
 
 
 
 
 
 
 
 
448,900,000 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Bank overdrafts
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
134,200,000 
 
 
 
Bank cash
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
166,900,000 
 
 
 
Bank cash, net of overdrafts
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
32,700,000 
 
 
 
Other Short-term Borrowings
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
$ 11,900,000 
$ 4,800,000 
[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. On September 3, 2013, we paid the Seller in cash a total of €466.0 million ($614.7 million) consisting of €455.1 million ($600.3 million) in principal and €10.9 million ($14.4 million) for the conversion feature. Separate from the Seller's notice to put, we had made claims with regard to the representations and warranties provided to us upon close of the Acquisition related to local country regulatory matters associated with pre-acquisition periods. As of December 31, 2013, we had withheld €44.9 million ($61.8 million) from the €500 million in principal related to these outstanding claims. During the first half of 2014, we released the €44.9 million ($61.4 million at settlement) withheld to the Seller as a result of the settlement of these claims. We did not incur any interest on amounts withheld. The €500 million convertible note's embedded conversion feature was determined to meet the definition of a derivative required to be bifurcated and separately accounted for at fair value with changes in fair value recorded in earnings. During the three and six months ended June 29, 2013, we recognized an unrealized gain of $2.7 million and an unrealized loss of $26.8 million, respectively, related to changes in the fair value of the conversion feature. The cash and non-cash interest, excluding the change in fair value of the convertible feature, resulted in an immaterial impact to our effective interest rate for the three and six months ended June 29, 2013.
[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). During the second quarter of 2014, we entered into a five-year, $750 million revolving multi-currency credit facility, which provides a $100 million sub-facility available for the issuance of letters of credit. This $750 million revolving facility replaced our existing $400 million and $550 million revolving credit facilities, which had maturities in the second quarters of 2015 and 2016, respectively. As a result, we made a reduction to the size of our existing commercial paper program to a maximum aggregate amount outstanding at any time of $750 million. Concurrent with the transaction, we incurred $1.8 million of issuance costs related to the $750 million revolving credit facility which are being amortized over the term of the agreement and recognized $1.3 million of accelerated amortization related to the termination of the pre-existing facilities. There were no outstanding borrowings under our $750 million revolving credit facility as of June 30, 2014, or under our pre-existing credit facilities upon termination or as of December 31, 2013. As of June 30, 2014, we have $448.9 million available to draw on under our $750 million revolving credit facility, as the borrowing capacity is reduced by borrowings under our commercial paper program discussed above. As of June 30, 2014, and December 31, 2013, we had outstanding borrowings of $4.4 million and $3.1 million, respectively, under the Japanese Yen line of credit and no borrowings under the GBP and CAD facilities. Our Europe segment has a notional cross-border, cross-currency cash pool for the majority of its subsidiaries. As of June 30, 2014, we had $134.2 million in bank overdrafts and $166.9 million in bank cash related to the pool for a net positive position of $32.7 million. As of December 31, 2013, we did not have bank overdrafts related to the cash pool. Also included in short-term borrowings is $11.9 million and $4.8 million related to factoring arrangements and other short-term borrowings within our Europe business as of June 30, 2014, and December 31, 2013, respectively.
Debt Narrative (Details)
3 Months Ended 6 Months Ended
Jun. 30, 2014
USD ($)
Dec. 31, 2013
USD ($)
Jun. 30, 2014
Commercial Paper Program [Member]
USD ($)
Dec. 31, 2013
Commercial Paper Program [Member]
USD ($)
May 3, 2012
Senior Notes [Member]
USD ($)
Jun. 15, 2007
Senior Notes [Member]
$575 million 2.5% convertible Senior Notes due 2013
USD ($)
May 3, 2012
Senior Notes [Member]
$500 million 3.5% notes due 2022 [Member]
Jun. 30, 2014
Senior Notes [Member]
$500 million 3.5% notes due 2022 [Member]
QTD [Member]
Jun. 30, 2014
Senior Notes [Member]
$500 million 3.5% notes due 2022 [Member]
YTD [Member]
May 3, 2012
Senior Notes [Member]
2.0% Interest Rate, Maturing 2017 [Member]
USD ($)
May 3, 2012
Senior Notes [Member]
5.0% Interest Rate, Maturing 2042 [Member]
USD ($)
Sep. 22, 2005
Senior Notes [Member]
5.0% Interest Rate, Maturing 2042 [Member]
Jun. 30, 2014
Line of Credit [Member]
Revolving Multicurrency Bank Credit Facility [Member]
USD ($)
Jun. 30, 2012
Line of Credit [Member]
Revolving Multicurrency Bank Credit Facility [Member]
USD ($)
Jun. 30, 2014
Revolving Credit [Member]
USD ($)
Dec. 31, 2013
Revolving Credit [Member]
USD ($)
Dec. 31, 2013
Revolving Credit [Member]
EUR (€)
Apr. 3, 2012
Revolving Credit [Member]
USD ($)
Jun. 15, 2012
Molson Coors Central Europe (MCCE)
Convertible Debt [Member]
Zero Coupon Senior Unsecured Note [Member]
EUR (€)
Jun. 30, 2013
Equity conversion feature of debt
Molson Coors Central Europe (MCCE)
Convertible Debt [Member]
Zero Coupon Senior Unsecured Note [Member]
USD ($)
Jun. 30, 2013
Equity conversion feature of debt
Molson Coors Central Europe (MCCE)
Convertible Debt [Member]
Zero Coupon Senior Unsecured Note [Member]
USD ($)
Debt Instrument [Line Items]
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Debt instrument, interest rate percentage
 
 
 
 
 
 
3.50% 
 
 
2.00% 
5.00% 
5.00% 
 
 
 
 
 
 
0.00% 
 
 
Debt instrument, face amount
 
 
 
 
$ 1,900,000,000 
$ 575,000,000 
 
 
 
$ 300,000,000 
$ 1,100,000,000 
 
 
 
 
 
 
 
€ 500,000,000 
 
 
Long-term debt
(3,208,600,000)
(3,274,800,000)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Unrealized loss, change in fair value of debt convertion feature
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
2,700,000 
(26,800,000)
Revolving credit facility, maximum borrowing capacity
750,000,000 
 
 
 
 
 
 
 
 
 
 
 
 
400,000,000 
 
 
 
550,000,000 
 
 
 
Line of Credit Facility, Remaining Borrowing Capacity
 
 
 
 
 
 
 
 
 
 
 
 
448,900,000 
 
 
 
 
 
 
 
 
Commercial paper outstanding, amount
 
 
301,100,000 
379,800,000 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Short-term debt, weighted average interest rate
 
 
0.38% 
0.49% 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Credit facility, current borrowing capacity
1
1
 
 
 
 
 
 
 
 
 
 
 
 
137,400,000 
100,000,000 
 
 
 
 
Short-term borrowings
451,600,000 1
525,100,000 1
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Long-term debt, fair value
$ 3,368,900,000 
$ 3,359,100,000 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Debt Instrument, Interest Rate, Effective Percentage
 
 
 
 
 
 
 
3.31% 
3.40% 
 
 
 
 
 
 
 
 
 
 
 
 
[1] 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). During the second quarter of 2014, we entered into a five-year, $750 million revolving multi-currency credit facility, which provides a $100 million sub-facility available for the issuance of letters of credit. This $750 million revolving facility replaced our existing $400 million and $550 million revolving credit facilities, which had maturities in the second quarters of 2015 and 2016, respectively. As a result, we made a reduction to the size of our existing commercial paper program to a maximum aggregate amount outstanding at any time of $750 million. Concurrent with the transaction, we incurred $1.8 million of issuance costs related to the $750 million revolving credit facility which are being amortized over the term of the agreement and recognized $1.3 million of accelerated amortization related to the termination of the pre-existing facilities. There were no outstanding borrowings under our $750 million revolving credit facility as of June 30, 2014, or under our pre-existing credit facilities upon termination or as of December 31, 2013. As of June 30, 2014, we have $448.9 million available to draw on under our $750 million revolving credit facility, as the borrowing capacity is reduced by borrowings under our commercial paper program discussed above. As of June 30, 2014, and December 31, 2013, we had outstanding borrowings of $4.4 million and $3.1 million, respectively, under the Japanese Yen line of credit and no borrowings under the GBP and CAD facilities. Our Europe segment has a notional cross-border, cross-currency cash pool for the majority of its subsidiaries. As of June 30, 2014, we had $134.2 million in bank overdrafts and $166.9 million in bank cash related to the pool for a net positive position of $32.7 million. As of December 31, 2013, we did not have bank overdrafts related to the cash pool. Also included in short-term borrowings is $11.9 million and $4.8 million related to factoring arrangements and other short-term borrowings within our Europe business as of June 30, 2014, and December 31, 2013, respectively.
Accumulated Other Comprehensive Income (Loss) Table 1 (Details) (USD $)
In Millions, unless otherwise specified
3 Months Ended 6 Months Ended
Jun. 30, 2014
Jun. 29, 2013
Jun. 30, 2014
Jun. 29, 2013
Accumulated Other Comprehensive Income (Loss) [Roll Forward]
 
 
 
 
Balance at December 31, 2013
 
 
$ 154.9 
 
Foreign currency translation adjustments
 
 
19.7 
 
Unrealized gain (loss) on derivative instruments
 
 
6.3 
 
Reclassification of derivative (gain) loss to income
 
 
(8.2)
 
Amortization of net prior service (benefit) cost and net actuarial (gain) loss to income
 
 
16.8 
 
Ownership share of unconsolidated subsidiaries' other comprehensive income (loss)
 
 
16.9 
 
Tax benefit (expense)
 
 
(50.5)
 
Total other comprehensive income (loss), net of tax
162.5 
(86.7)
1.0 
(347.9)
Balance at March 31, 2014
155.9 
 
155.9 
 
Foreign currency translation adjustments
 
 
 
 
Accumulated Other Comprehensive Income (Loss) [Roll Forward]
 
 
 
 
Balance at December 31, 2013
 
 
979.1 
 
Foreign currency translation adjustments
 
 
28.5 
 
Unrealized gain (loss) on derivative instruments
 
 
 
Reclassification of derivative (gain) loss to income
 
 
 
Amortization of net prior service (benefit) cost and net actuarial (gain) loss to income
 
 
 
Ownership share of unconsolidated subsidiaries' other comprehensive income (loss)
 
 
 
Tax benefit (expense)
 
 
(41.6)
 
Balance at March 31, 2014
966.0 
 
966.0 
 
Gain (loss) on derivative instruments
 
 
 
 
Accumulated Other Comprehensive Income (Loss) [Roll Forward]
 
 
 
 
Balance at December 31, 2013
 
 
14.6 
 
Foreign currency translation adjustments
 
 
(8.9)
 
Unrealized gain (loss) on derivative instruments
 
 
6.3 
 
Reclassification of derivative (gain) loss to income
 
 
(8.2)
 
Amortization of net prior service (benefit) cost and net actuarial (gain) loss to income
 
 
 
Ownership share of unconsolidated subsidiaries' other comprehensive income (loss)
 
 
 
Tax benefit (expense)
 
 
0.2 
 
Balance at March 31, 2014
4.0 
 
4.0 
 
Pension and postretirement benefit adjustments
 
 
 
 
Accumulated Other Comprehensive Income (Loss) [Roll Forward]
 
 
 
 
Balance at December 31, 2013
 
 
(556.3)
 
Foreign currency translation adjustments
 
 
0.1 
 
Unrealized gain (loss) on derivative instruments
 
 
 
Reclassification of derivative (gain) loss to income
 
 
 
Amortization of net prior service (benefit) cost and net actuarial (gain) loss to income
 
 
16.8 
 
Ownership share of unconsolidated subsidiaries' other comprehensive income (loss)
 
 
 
Tax benefit (expense)
 
 
(1.4)
 
Balance at March 31, 2014
(540.8)
 
(540.8)
 
Equity method investments
 
 
 
 
Accumulated Other Comprehensive Income (Loss) [Roll Forward]
 
 
 
 
Balance at December 31, 2013
 
 
(282.5)
 
Foreign currency translation adjustments
 
 
 
Unrealized gain (loss) on derivative instruments
 
 
 
Reclassification of derivative (gain) loss to income
 
 
 
Amortization of net prior service (benefit) cost and net actuarial (gain) loss to income
 
 
 
Ownership share of unconsolidated subsidiaries' other comprehensive income (loss)
 
 
16.9 
 
Tax benefit (expense)
 
 
(7.7)
 
Balance at March 31, 2014
$ (273.3)
 
$ (273.3)
 
Accumulated Other Comprehensive Income (Loss) Table 2 (Details) (USD $)
In Millions, unless otherwise specified
3 Months Ended 6 Months Ended
Jun. 30, 2014
Jun. 29, 2013
Jun. 30, 2014
Jun. 29, 2013
Foreign currency forwards and commodity swaps
$ 683.3 
$ 684.1 
$ 1,206.5 
$ 1,231.2 
Total income (loss) reclassified, before tax
292.9 
267.2 
457.7 
298.0 
Income tax benefit (expense)
(36.4)
(30.0)
(41.2)
(32.0)
Reclassification out of Accumulated Other Comprehensive Income [Member]
 
 
 
 
Net income (loss) reclassified, net of tax
(5.4)
(12.5)
(9.8)
(23.2)
Reclassification out of Accumulated Other Comprehensive Income [Member] |
Gain/(loss) on cash flow hedges [Member]
 
 
 
 
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 
Reclassification out of Accumulated Other Comprehensive Income [Member] |
Gain/(loss) on cash flow hedges [Member] |
Other income (expense), net [Member]
 
 
 
 
Foreign currency forwards, other
0.7 
0.5 
2.3 
0.4 
Reclassification out of Accumulated Other Comprehensive Income [Member] |
Gain/(loss) on cash flow hedges [Member] |
Cost of goods sold [Member]
 
 
 
 
Foreign currency forwards and commodity swaps
3.0 
1.2 
6.3 
1.7 
Reclassification out of Accumulated Other Comprehensive Income [Member] |
Gain/(loss) on cash flow hedges [Member] |
Forward starting interest rate swaps [Member] |
Interest expense, net [Member]
 
 
 
 
Forward starting interest rate swaps
(0.4)
(0.4)
(0.8)
(0.8)
Reclassification out of Accumulated Other Comprehensive Income [Member] |
Gain/(loss) on cash flow hedges [Member] |
Commodity swaps [Member] |
Cost of goods sold [Member]
 
 
 
 
Foreign currency forwards and commodity swaps
0.2 
0.2 
0.4 
Reclassification out of Accumulated Other Comprehensive Income [Member] |
Amortization of defined benefit pension and other postretirement benefit plan items [Member]
 
 
 
 
Prior service benefit (cost)
0.5 
0.7 
1.1 
1.4 
Net actuarial gain (loss)
(9.0)
(14.0)
(17.9)
(28.2)
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)
Derivative Instruments and Hedging Activities Narrative (Details)
In Millions, unless otherwise specified
6 Months Ended 3 Months Ended 6 Months Ended 12 Months Ended 46 Months Ended 6 Months Ended 3 Months Ended 3 Months Ended 6 Months Ended
Jun. 30, 2014
USD ($)
Jun. 29, 2013
USD ($)
Jun. 30, 2014
Fair Value Hedging [Member]
USD ($)
Jun. 30, 2014
Fair Value Hedging [Member]
USD ($)
Jun. 30, 2015
Forecast
USD ($)
M
Dec. 31, 2017
Forecast
Jun. 30, 2014
$500 million 3.5% notes due 2022 [Member]
Senior Notes [Member]
USD ($)
Dec. 31, 2013
$500 million 3.5% notes due 2022 [Member]
Senior Notes [Member]
USD ($)
May 3, 2012
$500 million 3.5% notes due 2022 [Member]
Senior Notes [Member]
USD ($)
Aug. 13, 2013
Zero Coupon Senior Unsecured Note [Member]
Molson Coors Central Europe (MCCE)
Convertible Debt [Member]
EUR (€)
Jun. 15, 2012
Zero Coupon Senior Unsecured Note [Member]
Molson Coors Central Europe (MCCE)
Convertible Debt [Member]
Jul. 1, 2014
Interest rate swaps [Member]
USD ($)
Jun. 30, 2014
Interest rate swaps [Member]
USD ($)
Jun. 30, 2014
Interest rate swaps [Member]
$500 million 3.5% notes due 2022 [Member]
Senior Notes [Member]
USD ($)
Jun. 30, 2014
Forward starting interest rate swap [Member]
CAD ($)
Jul. 1, 2014
Forward starting interest rate swap [Member]
Subsequent Event [Member]
CAD ($)
Mar. 31, 2014
Cross currency swaps [Member]
USD ($)
Mar. 31, 2014
Cross currency swaps [Member]
CAD ($)
Jun. 30, 2014
Interest Expense [Member]
Fair Value Hedging [Member]
Interest rate swaps [Member]
USD ($)
Jun. 30, 2014
Interest Expense [Member]
Fair Value Hedging [Member]
Interest rate swaps [Member]
USD ($)
Schedule of Trading Securities and Other Trading Assets
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Derivative, notional amount
 
 
 
 
 
 
 
 
 
 
 
$ 200.0 
$ 300.0 
 
$ 40.0 
$ 120.0 
 
$ 241.0 
 
 
Total long-term debt (including current portion) before unamortized discounts and other
 
 
 
 
 
 
501.2 1
500.0 1
500.0 
510.9 
 
 
 
 
 
 
 
 
 
 
Debt instrument, interest rate percentage
 
 
 
 
 
 
 
 
3.50% 
 
0.00% 
 
 
 
 
 
 
 
 
 
Gain (loss) on interest rate swap, fair value
 
 
1.2 
1.2 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
1.2 
1.2 
Loss on interest rate swaps, change in carrying value
 
 
 
 
 
 
 
 
 
 
 
 
 
(1.2)
 
 
 
 
 
 
Derivative, notional, fixed interest rate
 
 
 
 
 
 
 
 
 
 
 
 
 
 
3.11% 
 
 
 
 
 
Payments on settlement of derivative instruments
65.2 
35.1 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
65.2 
 
 
 
Unrealized Gain (Loss) on Interest Rate Cash Flow Hedges, Pretax, Accumulated Other Comprehensive Income (Loss)
 
 
 
 
$ 8 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Term for Expected Losses Recorded in Accumulated Other Comprehensive Income
 
 
 
 
12 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Maximum Length of Time Hedged in Cash Flow Hedge
 
 
 
 
 
3 years 9 months 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Derivative Instruments and Hedging Activities Derivative Fair Value (Details) (Fair Value, Measurements, Recurring [Member], USD $)
In Millions, unless otherwise specified
Jun. 30, 2014
Dec. 31, 2013
Fair Value, Inputs, Level 1 [Member]
 
 
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
 
 
Derivative, Fair Value, Net
$ 0 
$ 0 
Fair Value, Inputs, Level 1 [Member] |
Cross currency swaps [Member]
 
 
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
 
 
Derivative Liability, Fair Value, Gross Liability
 
Fair Value, Inputs, Level 1 [Member] |
Interest rate swaps [Member]
 
 
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
 
 
Derivative Asset, Fair Value, Gross Asset
 
Fair Value, Inputs, Level 1 [Member] |
Foreign currency forwards
 
 
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
 
 
Derivative Asset, Fair Value, Gross Asset
Fair Value, Inputs, Level 1 [Member] |
Commodity swaps [Member]
 
 
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
 
 
Derivative Liability, Fair Value, Gross Liability
Fair Value, Inputs, Level 2 [Member]
 
 
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
 
 
Derivative, Fair Value, Net
7.4 
(56.9)
Fair Value, Inputs, Level 2 [Member] |
Cross currency swaps [Member]
 
 
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
 
 
Derivative Liability, Fair Value, Gross Liability
 
71.7 
Fair Value, Inputs, Level 2 [Member] |
Interest rate swaps [Member]
 
 
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
 
 
Derivative Asset, Fair Value, Gross Asset
0.9 
 
Fair Value, Inputs, Level 2 [Member] |
Foreign currency forwards
 
 
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
 
 
Derivative Asset, Fair Value, Gross Asset
10.6 
19.7 
Fair Value, Inputs, Level 2 [Member] |
Commodity swaps [Member]
 
 
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
 
 
Derivative Liability, Fair Value, Gross Liability
4.1 
4.9 
Significant unobservable inputs (Level 3) [Member]
 
 
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
 
 
Derivative, Fair Value, Net
Significant unobservable inputs (Level 3) [Member] |
Cross currency swaps [Member]
 
 
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
 
 
Derivative Liability, Fair Value, Gross Liability
 
Significant unobservable inputs (Level 3) [Member] |
Interest rate swaps [Member]
 
 
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
 
 
Derivative Asset, Fair Value, Gross Asset
 
Significant unobservable inputs (Level 3) [Member] |
Foreign currency forwards
 
 
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
 
 
Derivative Asset, Fair Value, Gross Asset
Significant unobservable inputs (Level 3) [Member] |
Commodity swaps [Member]
 
 
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
 
 
Derivative Liability, Fair Value, Gross Liability
Reported Value Measurement [Member] |
Estimate of Fair Value Measurement [Member]
 
 
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
 
 
Derivative, Fair Value, Net
7.4 
(56.9)
Reported Value Measurement [Member] |
Estimate of Fair Value Measurement [Member] |
Cross currency swaps [Member]
 
 
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
 
 
Derivative Liability, Fair Value, Gross Liability
 
(71.7)
Reported Value Measurement [Member] |
Estimate of Fair Value Measurement [Member] |
Interest rate swaps [Member]
 
 
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
 
 
Derivative Asset, Fair Value, Gross Asset
0.9 
 
Reported Value Measurement [Member] |
Estimate of Fair Value Measurement [Member] |
Foreign currency forwards
 
 
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
 
 
Derivative Asset, Fair Value, Gross Asset
10.6 
19.7 
Reported Value Measurement [Member] |
Estimate of Fair Value Measurement [Member] |
Commodity swaps [Member]
 
 
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
 
 
Derivative Liability, Fair Value, Gross Liability
$ 4.1 
$ 4.9 
Derivative Instruments and Hedging Activities Fair Value Balance Sheet (Details)
In Millions, unless otherwise specified
Jun. 30, 2014
Designated as Hedging Instrument [Member]
USD ($)
Dec. 31, 2013
Designated as Hedging Instrument [Member]
USD ($)
Jun. 30, 2014
Designated as Hedging Instrument [Member]
Interest rate swaps [Member]
USD ($)
Jun. 30, 2014
Designated as Hedging Instrument [Member]
Interest rate swaps [Member]
Other non-current assets
USD ($)
Jun. 30, 2014
Designated as Hedging Instrument [Member]
Interest rate swaps [Member]
Long term derivative liability
USD ($)
Dec. 31, 2013
Designated as Hedging Instrument [Member]
Cross currency swaps [Member]
CAD ($)
Dec. 31, 2013
Designated as Hedging Instrument [Member]
Cross currency swaps [Member]
Other current assets
USD ($)
Dec. 31, 2013
Designated as Hedging Instrument [Member]
Cross currency swaps [Member]
Current derivative liability
USD ($)
Jun. 30, 2014
Designated as Hedging Instrument [Member]
Foreign currency forwards
USD ($)
Dec. 31, 2013
Designated as Hedging Instrument [Member]
Foreign currency forwards
USD ($)
Jun. 30, 2014
Designated as Hedging Instrument [Member]
Foreign currency forwards
Other current assets
USD ($)
Dec. 31, 2013
Designated as Hedging Instrument [Member]
Foreign currency forwards
Other current assets
USD ($)
Jun. 30, 2014
Designated as Hedging Instrument [Member]
Foreign currency forwards
Other non-current assets
USD ($)
Dec. 31, 2013
Designated as Hedging Instrument [Member]
Foreign currency forwards
Other non-current assets
USD ($)
Jun. 30, 2014
Designated as Hedging Instrument [Member]
Foreign currency forwards
Current derivative liability
USD ($)
Dec. 31, 2013
Designated as Hedging Instrument [Member]
Foreign currency forwards
Current derivative liability
USD ($)
Jun. 30, 2014
Designated as Hedging Instrument [Member]
Foreign currency forwards
Long term derivative liability
USD ($)
Dec. 31, 2013
Designated as Hedging Instrument [Member]
Foreign currency forwards
Long term derivative liability
USD ($)
Jun. 30, 2014
Designated as Hedging Instrument [Member]
Commodity swaps [Member]
kWh
Dec. 31, 2013
Designated as Hedging Instrument [Member]
Commodity swaps [Member]
kWh
Dec. 31, 2013
Designated as Hedging Instrument [Member]
Commodity swaps [Member]
Other current assets
USD ($)
Dec. 31, 2013
Designated as Hedging Instrument [Member]
Commodity swaps [Member]
Other non-current assets
USD ($)
Dec. 31, 2013
Designated as Hedging Instrument [Member]
Commodity swaps [Member]
Current derivative liability
USD ($)
Dec. 31, 2013
Designated as Hedging Instrument [Member]
Commodity swaps [Member]
Long term derivative liability
USD ($)
Jun. 30, 2014
Not Designated as Hedging Instrument [Member]
USD ($)
Dec. 31, 2013
Not Designated as Hedging Instrument [Member]
USD ($)
Jun. 30, 2014
Not Designated as Hedging Instrument [Member]
Commodity swaps [Member]
Other current assets
USD ($)
Jun. 30, 2014
Not Designated as Hedging Instrument [Member]
Commodity swaps [Member]
Other non-current assets
USD ($)
Jun. 30, 2014
Not Designated as Hedging Instrument [Member]
Commodity swaps [Member]
Current derivative liability
USD ($)
Jun. 30, 2014
Not Designated as Hedging Instrument [Member]
Commodity swaps [Member]
Long term derivative liability
USD ($)
Dec. 31, 2013
Not Designated as Hedging Instrument [Member]
Commodity swaps [Member]
t
Jun. 30, 2014
Not Designated as Hedging Instrument [Member]
Commodity swaps [Member]
t
Jun. 30, 2014
Not Designated as Hedging Instrument [Member]
Commodity [Member]
Other current assets
USD ($)
Dec. 31, 2013
Not Designated as Hedging Instrument [Member]
Commodity [Member]
Other current assets
USD ($)
Jun. 30, 2014
Not Designated as Hedging Instrument [Member]
Commodity [Member]
Other non-current assets
USD ($)
Dec. 31, 2013
Not Designated as Hedging Instrument [Member]
Commodity [Member]
Other non-current assets
USD ($)
Jun. 30, 2014
Not Designated as Hedging Instrument [Member]
Commodity [Member]
Current derivative liability
USD ($)
Dec. 31, 2013
Not Designated as Hedging Instrument [Member]
Commodity [Member]
Current derivative liability
USD ($)
Jun. 30, 2014
Not Designated as Hedging Instrument [Member]
Commodity [Member]
Long term derivative liability
USD ($)
Dec. 31, 2013
Not Designated as Hedging Instrument [Member]
Commodity [Member]
Long term derivative liability
USD ($)
Derivatives designated as hedging instruments:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Commodity swaps, Notional Amount
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
744,300,000 
848,800,000 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Derivative asset, fair value, designated as hedging instrument
$ 13.4 
$ 20.0 
 
$ 1.2 
 
 
$ 0 
 
 
 
$ 8.3 
$ 11.5 
$ 3.9 
$ 8.2 
 
 
 
 
 
 
$ 0.2 
$ 0.1 
 
 
 
 
$ 0.5 
$ 0.1 
 
 
 
 
 
 
 
 
 
 
 
 
Derivative fair value, liability
(1.9)
(72.2)
 
 
(0.3)
 
 
(71.7)
 
 
 
 
 
 
(0.1)
(1.5)
 
 
 
 
(0.2)
(0.3)
 
 
 
 
(0.9)
(0.4)
 
 
 
 
 
 
 
 
 
 
Derivative, notional amount
 
 
337.5 
 
 
240.7 
 
 
413.6 
476.1 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Derivatives not designated as hedging instruments:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Commodity swaps, Notional Amount
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
55,653 
48,657 
 
 
 
 
 
 
 
 
Derivative Instruments Not Designated as Hedging Instruments, Asset, at Fair Value
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
1.3 
 
 
 
 
 
 
0.3 
0.4 
 
 
 
 
Derivative Instruments Not Designated as Hedging Instruments, Liability, at Fair Value
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
$ (5.4)
$ (4.7)
 
 
 
 
 
 
 
 
 
 
$ (1.7)
$ (2.0)
$ (2.4)
$ (2.7)
Derivative Instruments and Hedging Activities Cash Flow Hedges (Details) (USD $)
In Millions, unless otherwise specified
3 Months Ended 6 Months Ended
Jun. 30, 2014
Jun. 29, 2013
Jun. 30, 2014
Jun. 29, 2013
Cash Flow Hedging [Member]
 
 
 
 
Derivative Instruments, Gain (Loss) [Line Items]
 
 
 
 
Amount of (gain) loss recognized in OCI on derivative (effective portion)
$ (15.2)
$ 14.2 
$ (0.2)
$ 23.7 
Amount of gain (loss) recognized from AOCI on derivative (effective portion)
3.5 
1.5 
8.2 
1.3 
Amount of gain (loss) recognized in income on derivative (ineffective portion and amount excluded from effectiveness testing)
Cash Flow Hedging [Member] |
Forward starting interest rate swap [Member]
 
 
 
 
Derivative Instruments, Gain (Loss) [Line Items]
 
 
 
 
Amount of (gain) loss recognized in OCI on derivative (effective portion)
(0.3)
(0.3)
Cash Flow Hedging [Member] |
Forward starting interest rate swap [Member] |
Interest Expense [Member]
 
 
 
 
Derivative Instruments, Gain (Loss) [Line Items]
 
 
 
 
Amount of gain (loss) recognized from AOCI on derivative (effective portion)
(0.4)
(0.4)
(0.8)
(0.8)
Amount of gain (loss) recognized in income on derivative (ineffective portion and amount excluded from effectiveness testing)
Cash Flow Hedging [Member] |
Foreign currency forwards
 
 
 
 
Derivative Instruments, Gain (Loss) [Line Items]
 
 
 
 
Amount of (gain) loss recognized in OCI on derivative (effective portion)
(15.1)
14.8 
(0.4)
23.7 
Cash Flow Hedging [Member] |
Foreign currency forwards |
Other Income Expense [Member]
 
 
 
 
Derivative Instruments, Gain (Loss) [Line Items]
 
 
 
 
Amount of gain (loss) recognized from AOCI on derivative (effective portion)
0.7 
0.5 
2.3 
0.4 
Amount of gain (loss) recognized in income on derivative (ineffective portion and amount excluded from effectiveness testing)
Cash Flow Hedging [Member] |
Foreign currency forwards |
Cost of Sales [Member]
 
 
 
 
Derivative Instruments, Gain (Loss) [Line Items]
 
 
 
 
Amount of gain (loss) recognized from AOCI on derivative (effective portion)
3.0 
1.2 
6.3 
1.7 
Amount of gain (loss) recognized in income on derivative (ineffective portion and amount excluded from effectiveness testing)
Cash Flow Hedging [Member] |
Commodity swaps [Member]
 
 
 
 
Derivative Instruments, Gain (Loss) [Line Items]
 
 
 
 
Amount of (gain) loss recognized in OCI on derivative (effective portion)
0.2 
(0.6)
0.5 
Cash Flow Hedging [Member] |
Commodity swaps [Member] |
Cost of Sales [Member]
 
 
 
 
Derivative Instruments, Gain (Loss) [Line Items]
 
 
 
 
Amount of gain (loss) recognized from AOCI on derivative (effective portion)
0.2 
0.2 
0.4 
Amount of gain (loss) recognized in income on derivative (ineffective portion and amount excluded from effectiveness testing)
Investment Hedge [Member]
 
 
 
 
Derivative Instruments, Gain (Loss) [Line Items]
 
 
 
 
Amount of (gain) loss recognized in OCI on derivative (effective portion)
 
13.6 
6.5 
31.5 
Amount of gain (loss) recognized from AOCI on derivative (effective portion)
 
Amount of gain (loss) recognized in income on derivative (ineffective portion and amount excluded from effectiveness testing)
 
Investment Hedge [Member] |
Cross currency swaps [Member]
 
 
 
 
Derivative Instruments, Gain (Loss) [Line Items]
 
 
 
 
Amount of (gain) loss recognized in OCI on derivative (effective portion)
 
15.3 
6.5 
29.5 
Investment Hedge [Member] |
Cross currency swaps [Member] |
Other Income Expense [Member]
 
 
 
 
Derivative Instruments, Gain (Loss) [Line Items]
 
 
 
 
Amount of gain (loss) recognized from AOCI on derivative (effective portion)
 
Amount of gain (loss) recognized in income on derivative (ineffective portion and amount excluded from effectiveness testing)
 
Term Loan Agreement [Member] |
Investment Hedge [Member]
 
 
 
 
Derivative Instruments, Gain (Loss) [Line Items]
 
 
 
 
Amount of (gain) loss recognized in OCI on derivative (effective portion)
 
(1.7)
 
2.0 
Term Loan Agreement [Member] |
Investment Hedge [Member] |
Other Income Expense [Member]
 
 
 
 
Derivative Instruments, Gain (Loss) [Line Items]
 
 
 
 
Amount of gain (loss) recognized from AOCI on derivative (effective portion)
 
 
Amount of gain (loss) recognized in income on derivative (ineffective portion and amount excluded from effectiveness testing)
 
$ 0 
 
$ 0 
Derivative Instruments and Hedging Activities Other Derivatives (Details) (USD $)
In Millions, unless otherwise specified
3 Months Ended 6 Months Ended
Jun. 30, 2014
Jun. 29, 2013
Jun. 30, 2014
Jun. 29, 2013
Not Designated as Hedging Instrument [Member] |
Other Income Expense [Member]
 
 
 
 
Gain (Loss) on Derivative Instruments:
 
 
 
 
Amount of Gain (Loss) Recognized in Income on Derivative
$ 0.7 
$ 5.1 
$ (0.6)
$ (35.0)
Not Designated as Hedging Instrument [Member] |
Equity conversion feature of debt |
Interest Expense [Member]
 
 
 
 
Gain (Loss) on Derivative Instruments:
 
 
 
 
Amount of Gain (Loss) Recognized in Income on Derivative
 
3.2 
 
(26.5)
Not Designated as Hedging Instrument [Member] |
Equity conversion feature of debt |
Other Income [Member]
 
 
 
 
Gain (Loss) on Derivative Instruments:
 
 
 
 
Amount of Gain (Loss) Recognized in Income on Derivative
 
(0.5)
 
(0.3)
Not Designated as Hedging Instrument [Member] |
Commodity swaps [Member] |
Cost of goods sold [Member]
 
 
 
 
Gain (Loss) on Derivative Instruments:
 
 
 
 
Amount of Gain (Loss) Recognized in Income on Derivative
0.7 
(1.5)
(0.6)
(1.5)
Not Designated as Hedging Instrument [Member] |
Foreign currency forwards |
Other Income [Member]
 
 
 
 
Gain (Loss) on Derivative Instruments:
 
 
 
 
Amount of Gain (Loss) Recognized in Income on Derivative
 
3.9 
 
(6.7)
Investment Hedge [Member]
 
 
 
 
Gain (Loss) on Derivative Instruments:
 
 
 
 
Derivative Instruments, Gain (Loss) Recognized in Other Comprehensive Income (Loss), Effective Portion, Net
 
13.6 
6.5 
31.5 
Derivative Instruments, Gain (Loss) Reclassified from Accumulated OCI into Income, Effective Portion, Net
 
Amount of gain (loss) recognized in income on derivative (ineffective portion and amount excluded from effectiveness testing)
 
Investment Hedge [Member] |
Cross currency swaps [Member]
 
 
 
 
Gain (Loss) on Derivative Instruments:
 
 
 
 
Derivative Instruments, Gain (Loss) Recognized in Other Comprehensive Income (Loss), Effective Portion, Net
 
15.3 
6.5 
29.5 
Investment Hedge [Member] |
Cross currency swaps [Member] |
Other Income Expense [Member]
 
 
 
 
Gain (Loss) on Derivative Instruments:
 
 
 
 
Derivative Instruments, Gain (Loss) Reclassified from Accumulated OCI into Income, Effective Portion, Net
 
Amount of gain (loss) recognized in income on derivative (ineffective portion and amount excluded from effectiveness testing)
 
Term Loan Agreement [Member] |
Investment Hedge [Member]
 
 
 
 
Gain (Loss) on Derivative Instruments:
 
 
 
 
Derivative Instruments, Gain (Loss) Recognized in Other Comprehensive Income (Loss), Effective Portion, Net
 
(1.7)
 
2.0 
Term Loan Agreement [Member] |
Investment Hedge [Member] |
Other Income Expense [Member]
 
 
 
 
Gain (Loss) on Derivative Instruments:
 
 
 
 
Derivative Instruments, Gain (Loss) Reclassified from Accumulated OCI into Income, Effective Portion, Net
 
 
Amount of gain (loss) recognized in income on derivative (ineffective portion and amount excluded from effectiveness testing)
 
$ 0 
 
$ 0 
Pension and Other Postretirement Benefits (Details) (USD $)
In Millions, unless otherwise specified
6 Months Ended 3 Months Ended 6 Months Ended 3 Months Ended 6 Months Ended 3 Months Ended 6 Months Ended
Jun. 30, 2014
Dec. 31, 2013
Jun. 30, 2014
Defined Benefit Plans
Jun. 30, 2014
Defined Benefit Plans and Other Postretirement Benefit, Cost [Member]
Jun. 29, 2013
Defined Benefit Plans and Other Postretirement Benefit, Cost [Member]
Jun. 30, 2014
Defined Benefit Plans and Other Postretirement Benefit, Cost [Member]
Jun. 29, 2013
Defined Benefit Plans and Other Postretirement Benefit, Cost [Member]
Jun. 30, 2014
Defined Benefit Plans and Other Postretirement Benefit, Cost [Member]
Defined Benefit Plans
Jun. 29, 2013
Defined Benefit Plans and Other Postretirement Benefit, Cost [Member]
Defined Benefit Plans
Jun. 30, 2014
Defined Benefit Plans and Other Postretirement Benefit, Cost [Member]
Defined Benefit Plans
Jun. 29, 2013
Defined Benefit Plans and Other Postretirement Benefit, Cost [Member]
Defined Benefit Plans
Jun. 30, 2014
Defined Benefit Plans and Other Postretirement Benefit, Cost [Member]
Other Postretirement Benefits
Jun. 29, 2013
Defined Benefit Plans and Other Postretirement Benefit, Cost [Member]
Other Postretirement Benefits
Jun. 30, 2014
Defined Benefit Plans and Other Postretirement Benefit, Cost [Member]
Other Postretirement Benefits
Jun. 29, 2013
Defined Benefit Plans and Other Postretirement Benefit, Cost [Member]
Other Postretirement Benefits
Pension and other post-retirement benefits details:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Pension and other postretirement defined benefit plans, noncurrent liabilities
$ 443.3 
$ 462.6 
 
 
 
 
 
 
 
 
 
 
 
 
 
Net periodic pension costs under retirement plans and other postretirement benefits:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Service cost - benefits earned during the period
 
 
 
4.1 
4.9 
8.1 
9.8 
3.3 
4.0 
6.6 
8.0 
0.8 
0.9 
1.5 
1.8 
Interest cost on projected benefit obligation
 
 
 
44.5 
40.6 
88.3 
81.8 
42.6 
38.8 
84.7 
78.2 
1.9 
1.8 
3.6 
3.6 
Expected return on plan assets
 
 
 
(49.8)
(44.0)
(98.9)
(88.7)
(49.8)
(44.0)
(98.9)
(88.7)
Amortization of prior service cost (benefit)
 
 
 
(0.5)
(0.7)
(1.1)
(1.4)
0.2 
0.2 
0.4 
0.4 
(0.7)
(0.9)
(1.5)
(1.8)
Amortization of net actuarial loss (gain)
 
 
 
9.0 
14.0 
17.9 
28.2 
9.3 
14.1 
18.4 
28.4 
(0.3)
(0.1)
(0.5)
(0.2)
Less: expected participant contributions
 
 
 
(0.3)
(0.3)
(0.6)
(0.6)
(0.3)
(0.3)
(0.6)
(0.6)
Net periodic pension and OPEB cost
 
 
 
7.0 
14.5 
13.7 
29.1 
5.3 
12.8 
10.6 
25.7 
1.7 
1.7 
3.1 
3.4 
Contributions paid to defined benefit plans
23.8 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Expected total defined benefit plan employer contributions
 
 
$ 35 
 
 
 
 
 
 
 
 
 
 
 
 
Commitments and Contingencies Loss Contingency (Details)
In Millions, unless otherwise specified
1 Months Ended 3 Months Ended 6 Months Ended 12 Months Ended 3 Months Ended 6 Months Ended 3 Months Ended 6 Months Ended 12 Months Ended 6 Months Ended 3 Months Ended 6 Months Ended
Dec. 31, 2009
CAD ($)
Mar. 31, 2014
USD ($)
Jun. 30, 2014
USD ($)
Dec. 31, 2013
USD ($)
Jun. 30, 2014
Kaiser purchased tax credits indemnity reserve, category two
USD ($)
Jun. 30, 2014
Kaiser Tax, Civil and Labor Indemnity Reserve [Member]
USD ($)
Dec. 31, 1990
Environmental matters Lowry [Member]
USD ($)
Jun. 30, 2014
Environmental matters Lowry [Member]
USD ($)
Jun. 30, 2014
Other [Member]
USD ($)
Dec. 31, 2013
Other [Member]
USD ($)
Jun. 30, 2014
Licensing Agreements [Member]
USD ($)
Jun. 29, 2013
Licensing Agreements [Member]
USD ($)
Jun. 30, 2014
Licensing Agreements [Member]
USD ($)
Jun. 29, 2013
Licensing Agreements [Member]
USD ($)
Dec. 31, 2013
Licensing Agreements [Member]
Canada [Member]
USD ($)
Jun. 30, 2014
Minimum [Member]
Other [Member]
Dec. 31, 2013
Minimum [Member]
Other [Member]
Jun. 30, 2014
Minimum [Member]
License Agreement Terms [Member]
Jun. 30, 2014
Cervejarias Kaiser Brasil S.A. [Member]
USD ($)
Jun. 29, 2013
Cervejarias Kaiser Brasil S.A. [Member]
USD ($)
Jun. 30, 2014
Cervejarias Kaiser Brasil S.A. [Member]
USD ($)
Jun. 29, 2013
Cervejarias Kaiser Brasil S.A. [Member]
USD ($)
Loss Contingencies [Line Items]
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Gain (loss) discontinued operations
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
$ 0.2 
$ 1.7 
$ (1.7)
$ 0.8 
Equity interest sold (as a percent)
 
 
 
 
 
68.00% 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Maximum potential claims
 
 
 
 
158.1 
68.0 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Guarantees
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Letter of credit provided to entity
10 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Guarantees related to banks and other third parties noncurrent portion
 
 
5.7 
5.8 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Litigation and Other Disputes
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Accrued liabilities, litigations and disputes
 
 
17.1 
14.0 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Gain on litigation, favorable outcome
 
13.0 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Income tax benefit, litigation settlement
 
(18.5)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Impairment of Intangible Assets, Finite-lived
 
 
 
 
 
 
 
 
 
 
 
 
 
 
17.9 
 
 
 
 
 
 
 
License and Services Revenue
 
 
 
 
 
 
 
 
 
 
25.5 
29.9 
39.4 
47.1 
 
 
 
 
 
 
 
 
Finite-Lived Intangible Assets, Net
 
 
 
 
 
 
 
 
32.0 
 
32.0 
 
4.9 
 
 
 
 
 
 
 
Useful life - minimum (in years)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
2 years 
2 years 
3 years 
 
 
 
 
Environmental
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Environmental remediation expense, pretax charge
 
 
 
 
 
 
30 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Environmental remediation threshold, assumed remediation cost
 
 
 
 
 
 
 
120 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Inflation rate assumption, future costs (as a percent)
 
 
 
 
 
 
 
2.50% 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Risk free rate of return assumption (as a percent)
 
 
 
 
 
 
 
2.94% 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Site contingency, accrual, present value
 
 
 
 
 
 
 
2.2 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Site contingency, accrual, undiscounted amount
 
 
 
 
 
 
 
$ 5.3 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Supplemental Guarantor Information Supplemental Narrative (Details)
3 Months Ended 6 Months Ended 3 Months Ended 6 Months Ended 3 Months Ended 6 Months Ended 3 Months Ended 6 Months Ended 12 Months Ended
Jun. 30, 2014
USD ($)
Jun. 29, 2013
USD ($)
Jun. 30, 2014
USD ($)
Jun. 29, 2013
USD ($)
Dec. 31, 2013
USD ($)
Jun. 29, 2013
As Reported [Member]
USD ($)
Jun. 29, 2013
As Reported [Member]
USD ($)
Jun. 29, 2013
As Adjusted [Member]
USD ($)
Jun. 29, 2013
As Adjusted [Member]
USD ($)
Jun. 30, 2014
Parent Guarantor and 2012 Issuer [Member]
USD ($)
Jun. 29, 2013
Parent Guarantor and 2012 Issuer [Member]
USD ($)
Jun. 30, 2014
Parent Guarantor and 2012 Issuer [Member]
USD ($)
Jun. 29, 2013
Parent Guarantor and 2012 Issuer [Member]
USD ($)
Dec. 31, 2013
Parent Guarantor and 2012 Issuer [Member]
USD ($)
May 3, 2012
Senior Notes [Member]
USD ($)
Jun. 15, 2007
Senior Notes [Member]
Convertible Senior Notes Due 2013 $575 Million 2.5% [Member]
USD ($)
Oct. 6, 2010
Senior Notes [Member]
Series A notes due 2017 CAD 500 million 3.95% [Member]
USD ($)
May 3, 2012
Senior Notes [Member]
Parent Company [Member]
Senior Notes Due 2017 $300M 2.0% [Member]
USD ($)
May 3, 2012
Senior Notes [Member]
Parent Company [Member]
Senior Notes Due 2022 $500M 3.5% [Member]
USD ($)
May 3, 2012
Senior Notes [Member]
Parent Company [Member]
Senior Notes Due 2042 $1.1B 5.0% [Member]
USD ($)
Sep. 22, 2005
Senior Notes [Member]
Issuer 2005 And Issuer 2010 [Member]
USD ($)
Dec. 25, 2010
Senior Notes [Member]
Issuer 2005 And Issuer 2010 [Member]
Senior Notes 4.85 Percent and 5 Percent due 2010 and 2015 [Member]
USD ($)
Sep. 22, 2005
Senior Notes [Member]
Issuer 2005 And Issuer 2010 [Member]
Senior Notes 4.85 Percent and 5 Percent due 2010 and 2015 [Member]
USD ($)
Sep. 22, 2005
Senior Notes [Member]
Issuer 2005 And Issuer 2010 [Member]
Series A notes due 2017 CAD 500 million 3.95% [Member]
CAD ($)
Debt instrument, face amount
 
 
 
 
 
 
 
 
 
 
 
 
 
 
$ 1,900,000,000 
$ 575,000,000 
$ 500,000,000 
$ 300,000,000 
$ 500,000,000 
$ 1,100,000,000 
$ 1,100,000,000 
 
$ 300,000,000 
$ 900,000,000 
Comprehensive income (loss) attributable to Molson Coors Brewing Company
453,400,000 
180,600,000 
455,300,000 
(52,100,000)
 
225,900,000 
19,700,000 
180,600,000 
(52,100,000)
453,400,000 
180,600,000 
455,300,000 
(52,100,000)
 
 
 
 
 
 
 
 
 
 
 
Investments in and Advance to Affiliates, Subsidiaries, Associates, and Joint Ventures
 
 
 
 
 
 
 
 
 
13,469,900,000 
 
13,469,900,000 
 
12,860,900,000 
 
 
 
 
 
 
 
 
 
 
Stockholders' Equity Attributable to Parent
8,962,000,000 
 
8,962,000,000 
 
8,605,200,000 
 
 
 
 
8,962,000,000 
 
8,962,000,000 
 
8,605,200,000 
 
 
 
 
 
 
 
 
 
 
Debt instrument, interest rate percentage
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
3.95% 
2.00% 
3.50% 
5.00% 
 
 
4.85% 
5.00% 
Repayments of Long-term Debt, Long-term Capital Lease Obligations, and Capital Securities
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
$ 300,000,000 
 
 
Supplemental Guarantor Information Income statement (Details) (USD $)
In Millions, unless otherwise specified
3 Months Ended 6 Months Ended
Jun. 30, 2014
Jun. 29, 2013
Jun. 30, 2014
Jun. 29, 2013
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
 
 
 
 
Sales
$ 1,685.9 
$ 1,659.7 
$ 2,864.2 
$ 2,844.5 
Excise taxes
(497.4)
(481.7)
(859.7)
(838.0)
Net sales
1,188.5 
1,178.0 
2,004.5 
2,006.5 
Cost of goods sold
(683.3)
(684.1)
(1,206.5)
(1,231.2)
Gross profit
505.2 
493.9 
798.0 
775.3 
Marketing, general and administrative expenses
(327.8)
(319.5)
(591.7)
(613.4)
Special items, net
(2.7)
(1.3)
49.8 
(2.8)
Equity income in MillerCoors
190.1 
172.6 
312.9 
290.0 
Operating income (loss)
364.8 
345.7 
569.0 
449.1 
Interest income (expense), net
(36.2)
(41.2)
(71.6)
(116.1)
Other income (expense), net
0.7 
(7.3)
1.5 
(3.0)
Income (loss) from continuing operations before income taxes
329.3 
297.2 1
498.9 
330.0 1
Income tax benefit (expense)
(36.4)
(30.0)
(41.2)
(32.0)
Net Income (loss) from continuing operations
292.9 
267.2 
457.7 
298.0 
Income (loss) from discontinued operations, net of tax
0.2 
1.7 1
(1.7)
0.8 1
Net income (loss) including noncontrolling interests
293.1 
268.9 
456.0 
298.8 
Net (income) loss attributable to noncontrolling interests
(2.2)
(1.6)
(1.7)
(3.0)
Net income (loss) attributable to MCBC
290.9 
267.3 1
454.3 
295.8 1
Comprehensive income (loss) attributable to Molson Coors Brewing Company
453.4 
180.6 
455.3 
(52.1)
Parent Guarantor and 2012 Issuer [Member]
 
 
 
 
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
 
 
 
 
Sales
(3.2)
9.6 
4.8 
13.5 
Excise taxes
Net sales
(3.2)
9.6 
4.8 
13.5 
Cost of goods sold
Gross profit
(3.2)
9.6 
4.8 
13.5 
Marketing, general and administrative expenses
(29.6)
(27.8)
(60.8)
(64.9)
Special items, net
(0.3)
(0.7)
(0.3)
(1.0)
Equity income (loss) in subsidiaries
296.0 
250.4 
497.4 
350.0 
Equity income in MillerCoors
Operating income (loss)
262.9 
231.5 
441.1 
297.6 
Interest income (expense), net
(22.4)
(27.7)
(43.8)
(53.7)
Other income (expense), net
2.1 
15.0 
2.4 
1.4 
Income (loss) from continuing operations before income taxes
242.6 
218.8 
399.7 
245.3 
Income tax benefit (expense)
48.3 
48.5 
54.6 
50.5 
Net Income (loss) from continuing operations
290.9 
267.3 
454.3 
295.8 
Income (loss) from discontinued operations, net of tax
Net income (loss) including noncontrolling interests
290.9 
267.3 
454.3 
295.8 
Net (income) loss attributable to noncontrolling interests
Net income (loss) attributable to MCBC
290.9 
267.3 
454.3 
295.8 
Comprehensive income (loss) attributable to Molson Coors Brewing Company
453.4 
180.6 
455.3 
(52.1)
Subsidiary Guarantors [Member]
 
 
 
 
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
 
 
 
 
Sales
1,262.5 
1,310.9 
2,213.3 
2,283.7 
Excise taxes
(405.2)
(391.5)
(710.1)
(695.3)
Net sales
857.3 
919.4 
1,503.2 
1,588.4 
Cost of goods sold
(520.8)
(521.7)
(925.5)
(949.4)
Gross profit
336.5 
397.7 
577.7 
639.0 
Marketing, general and administrative expenses
(193.7)
(198.5)
(367.5)
(382.8)
Special items, net
(0.6)
(0.2)
(11.3)
(1.0)
Equity income (loss) in subsidiaries
60.0 
(121.4)
26.3 
(272.7)
Equity income in MillerCoors
190.1 
172.6 
312.9 
290.0 
Operating income (loss)
392.3 
250.2 
538.1 
272.5 
Interest income (expense), net
73.9 
84.0 
149.7 
132.1 
Other income (expense), net
1.2 
(10.2)
3.2 
20.6 
Income (loss) from continuing operations before income taxes
467.4 
324.0 
691.0 
425.2 
Income tax benefit (expense)
(117.1)
(74.4)
(132.4)
(77.4)
Net Income (loss) from continuing operations
350.3 
249.6 
558.6 
347.8 
Income (loss) from discontinued operations, net of tax
Net income (loss) including noncontrolling interests
350.3 
249.6 
558.6 
347.8 
Net (income) loss attributable to noncontrolling interests
Net income (loss) attributable to MCBC
350.3 
249.6 
558.6 
347.8 
Comprehensive income (loss) attributable to Molson Coors Brewing Company
508.5 
180.4 
602.5 
55.9 
Subsidiary Non Guarantors [Member]
 
 
 
 
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
 
 
 
 
Sales
415.0 
406.6 
674.0 
647.0 
Excise taxes
(92.2)
(90.2)
(149.6)
(142.7)
Net sales
322.8 
316.4 
524.4 
504.3 
Cost of goods sold
(147.2)
(219.3)
(290.0)
(366.0)
Gross profit
175.6 
97.1 
234.4 
138.3 
Marketing, general and administrative expenses
(108.2)
(103.7)
(182.3)
(181.2)
Special items, net
(1.8)
(0.4)
61.4 
(0.8)
Equity income (loss) in subsidiaries
99.0 
141.5 
120.2 
176.7 
Equity income in MillerCoors
Operating income (loss)
164.6 
134.5 
233.7 
133.0 
Interest income (expense), net
(87.7)
(97.5)
(177.5)
(194.5)
Other income (expense), net
(2.6)
(12.1)
(4.1)
(25.0)
Income (loss) from continuing operations before income taxes
74.3 
24.9 
52.1 
(86.5)
Income tax benefit (expense)
32.4 
(4.1)
36.6 
(5.1)
Net Income (loss) from continuing operations
106.7 
20.8 
88.7 
(91.6)
Income (loss) from discontinued operations, net of tax
0.2 
1.7 
(1.7)
0.8 
Net income (loss) including noncontrolling interests
106.9 
22.5 
87.0 
(90.8)
Net (income) loss attributable to noncontrolling interests
(2.2)
(1.6)
(1.7)
(3.0)
Net income (loss) attributable to MCBC
104.7 
20.9 
85.3 
(93.8)
Comprehensive income (loss) attributable to Molson Coors Brewing Company
156.0 
38.7 
134.1 
(187.3)
Eliminations [Member]
 
 
 
 
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
 
 
 
 
Sales
11.6 
(67.4)
(27.9)
(99.7)
Excise taxes
Net sales
11.6 
(67.4)
(27.9)
(99.7)
Cost of goods sold
(15.3)
56.9 
9.0 
84.2 
Gross profit
(3.7)
(10.5)
(18.9)
(15.5)
Marketing, general and administrative expenses
3.7 
10.5 
18.9 
15.5 
Special items, net
Equity income (loss) in subsidiaries
(455.0)
(270.5)
(643.9)
(254.0)
Equity income in MillerCoors
Operating income (loss)
(455.0)
(270.5)
(643.9)
(254.0)
Interest income (expense), net
Other income (expense), net
Income (loss) from continuing operations before income taxes
(455.0)
(270.5)
(643.9)
(254.0)
Income tax benefit (expense)
Net Income (loss) from continuing operations
(455.0)
(270.5)
(643.9)
(254.0)
Income (loss) from discontinued operations, net of tax
Net income (loss) including noncontrolling interests
(455.0)
(270.5)
(643.9)
(254.0)
Net (income) loss attributable to noncontrolling interests
Net income (loss) attributable to MCBC
(455.0)
(270.5)
(643.9)
(254.0)
Comprehensive income (loss) attributable to Molson Coors Brewing Company
(664.5)
(219.1)
(736.6)
131.4 
Consolidated [Member]
 
 
 
 
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
 
 
 
 
Sales
1,685.9 
1,659.7 
2,864.2 
2,844.5 
Excise taxes
(497.4)
(481.7)
(859.7)
(838.0)
Net sales
1,188.5 
1,178.0 
2,004.5 
2,006.5 
Cost of goods sold
(683.3)
(684.1)
(1,206.5)
(1,231.2)
Gross profit
505.2 
493.9 
798.0 
775.3 
Marketing, general and administrative expenses
(327.8)
(319.5)
(591.7)
(613.4)
Special items, net
(2.7)
(1.3)
49.8 
(2.8)
Equity income (loss) in subsidiaries
Equity income in MillerCoors
190.1 
172.6 
312.9 
290.0 
Operating income (loss)
364.8 
345.7 
569.0 
449.1 
Interest income (expense), net
(36.2)
(41.2)
(71.6)
(116.1)
Other income (expense), net
0.7 
(7.3)
1.5 
(3.0)
Income (loss) from continuing operations before income taxes
329.3 
297.2 
498.9 
330.0 
Income tax benefit (expense)
(36.4)
(30.0)
(41.2)
(32.0)
Net Income (loss) from continuing operations
292.9 
267.2 
457.7 
298.0 
Income (loss) from discontinued operations, net of tax
0.2 
1.7 
(1.7)
0.8 
Net income (loss) including noncontrolling interests
293.1 
268.9 
456.0 
298.8 
Net (income) loss attributable to noncontrolling interests
(2.2)
(1.6)
(1.7)
(3.0)
Net income (loss) attributable to MCBC
290.9 
267.3 
454.3 
295.8 
Comprehensive income (loss) attributable to Molson Coors Brewing Company
$ 453.4 
$ 180.6 
$ 455.3 
$ (52.1)
Supplemental Guarantor Information Balance Sheet (Details) (USD $)
In Millions, unless otherwise specified
Jun. 30, 2014
Dec. 31, 2013
Jun. 29, 2013
Dec. 29, 2012
Jun. 30, 2014
Parent Guarantor and 2012 Issuer [Member]
Dec. 31, 2013
Parent Guarantor and 2012 Issuer [Member]
Jun. 30, 2013
Parent Guarantor and 2012 Issuer [Member]
Dec. 29, 2012
Parent Guarantor and 2012 Issuer [Member]
Jun. 30, 2014
Subsidiary Guarantors [Member]
Dec. 31, 2013
Subsidiary Guarantors [Member]
Jun. 30, 2013
Subsidiary Guarantors [Member]
Dec. 29, 2012
Subsidiary Guarantors [Member]
Jun. 30, 2014
Subsidiary Non Guarantors [Member]
Dec. 31, 2013
Subsidiary Non Guarantors [Member]
Jun. 30, 2013
Subsidiary Non Guarantors [Member]
Dec. 29, 2012
Subsidiary Non Guarantors [Member]
Jun. 30, 2014
Eliminations [Member]
Dec. 31, 2013
Eliminations [Member]
Jun. 30, 2013
Eliminations [Member]
Dec. 29, 2012
Eliminations [Member]
Jun. 30, 2014
Consolidated [Member]
Dec. 31, 2013
Consolidated [Member]
Jun. 30, 2013
Consolidated [Member]
Dec. 29, 2012
Consolidated [Member]
Current assets:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Cash and cash equivalents
$ 506.0 
$ 442.3 
$ 801.6 
$ 624.0 
$ 77.4 
$ 90.6 
$ 325.3 
$ 189.8 
$ 263.6 
$ 248.7 
$ 317.4 
$ 249.3 
$ 165.0 
$ 103.0 
$ 158.9 
$ 184.9 
$ 0 
$ 0 
$ 0 
$ 0 
$ 506.0 
$ 442.3 
$ 801.6 
$ 624.0 
Accounts receivable, net
730.9 
603.6 
 
 
0.1 
0.7 
 
 
498.6 
466.3 
 
 
232.2 
136.6 
 
 
 
 
730.9 
603.6 
 
 
Other receivables, net
141.5 
124.4 
 
 
66.2 
48.0 
 
 
51.3 
56.5 
 
 
24.0 
19.9 
 
 
 
 
141.5 
124.4 
 
 
Total inventories, net
277.3 
205.3 
 
 
 
 
223.7 
166.8 
 
 
53.6 
38.5 
 
 
 
 
277.3 
205.3 
 
 
Other current assets, net
119.3 
111.7 
 
 
6.6 
8.4 
 
 
64.5 
60.1 
 
 
48.2 
43.2 
 
 
 
 
119.3 
111.7 
 
 
Deferred tax assets
25.3 
50.4 
 
 
 
 
1.5 
 
 
26.7 
53.3 
 
 
(2.9)
(2.9)
 
 
25.3 
50.4 
 
 
Intercompany accounts receivable
 
 
 
 
 
 
3,395.0 
3,186.8 
 
 
278.8 
196.5 
 
 
(3,673.8)
(3,383.3)
 
 
 
 
Total current assets
1,800.3 
1,537.7 
 
 
150.3 
147.7 
 
 
4,498.2 
4,185.2 
 
 
828.5 
591.0 
 
 
(3,676.7)
(3,386.2)
 
 
1,800.3 
1,537.7 
 
 
Properties, net
1,974.0 
1,970.1 
 
 
31.3 
31.0 
 
 
1,267.4 
1,282.8 
 
 
675.3 
656.3 
 
 
 
 
1,974.0 
1,970.1 
 
 
Goodwill
2,440.7 
2,418.7 
 
 
 
 
1,189.3 
1,161.8 
 
 
1,251.4 
1,256.9 
 
 
 
 
2,440.7 
2,418.7 
 
 
Other intangibles, net
6,777.2 
6,825.1 
 
 
 
 
4,265.3 
4,292.3 
 
 
2,511.9 
2,532.8 
 
 
 
 
6,777.2 
6,825.1 
 
 
Investment in MillerCoors
2,598.6 
2,506.5 
 
 
 
 
2,598.6 
2,506.5 
 
 
 
 
 
 
2,598.6 
2,506.5 
 
 
Net investment in and advances to subsidiaries
 
 
 
 
13,469.9 
12,860.9 
 
 
3,211.4 
3,303.7 
 
 
6,856.1 
6,654.9 
 
 
(23,537.4)
(22,819.5)
 
 
 
 
Deferred tax assets
16.5 
38.3 
 
 
9.1 
28.8 
 
 
2.1 
3.1 
 
 
0.1 
1.0 
 
 
5.2 
5.4 
 
 
16.5 
38.3 
 
 
Other assets
 
 
 
 
22.2 
35.5 
 
 
177.5 
175.0 
 
 
66.0 
73.2 
 
 
 
 
265.7 
283.7 
 
 
Total assets
15,873.0 
15,580.1 
 
 
13,682.8 
13,103.9 
 
 
17,209.8 
16,910.4 
 
 
12,189.3 
11,766.1 
 
 
(27,208.9)
(26,200.3)
 
 
15,873.0 
15,580.1 
 
 
Current liabilities :
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Accounts payable and other current liabilities
 
 
 
 
67.2 
71.5 
 
 
978.0 
998.6 
 
 
469.5 
359.5 
 
 
 
 
1,514.7 
1,429.6 
 
 
Deferred tax liabilities
138.1 
138.1 
 
 
8.8 
8.8 
 
 
132.2 
132.2 
 
 
 
 
(2.9)
(2.9)
 
 
138.1 
138.1 
 
 
Current portion of long-term debt and short-term borrowings
451.6 
586.9 
 
 
301.1 
379.7 
 
 
61.8 
 
 
150.5 
145.4 
 
 
 
 
451.6 
586.9 
 
 
Discontinued operations
7.3 
6.8 
 
 
 
 
 
 
7.3 
6.8 
 
 
 
 
7.3 
6.8 
 
 
Intercompany accounts payable
 
 
 
 
2,419.8 
2,120.7 
 
 
298.4 
228.3 
 
 
955.6 
1,034.3 
 
 
(3,673.8)
(3,383.3)
 
 
 
 
Total current liabilities
2,111.7 
2,161.4 
 
 
2,796.9 
2,580.7 
 
 
1,408.6 
1,420.9 
 
 
1,582.9 
1,546.0 
 
 
(3,676.7)
(3,386.2)
 
 
2,111.7 
2,161.4 
 
 
Long-term debt
3,208.6 
3,213.0 
 
 
1,897.5 
1,896.2 
 
 
1,311.0 
1,316.6 
 
 
0.1 
0.2 
 
 
 
 
3,208.6 
3,213.0 
 
 
Pension and post-retirement benefits
443.3 
462.6 
 
 
2.8 
2.6 
 
 
433.5 
453.3 
 
 
7.0 
6.7 
 
 
 
 
443.3 
462.6 
 
 
Deferred tax liabilities
977.4 
911.4 
 
 
 
 
0.2 
 
 
972.0 
906.0 
 
 
5.2 
5.4 
 
 
977.4 
911.4 
 
 
Other liabilities
 
 
 
 
26.8 
22.4 
 
 
24.2 
22.4 
 
 
77.4 
139.5 
 
 
 
 
128.4 
184.3 
 
 
Discontinued operations
18.5 
17.3 
 
 
 
 
 
 
18.5 
17.3 
 
 
 
 
18.5 
17.3 
 
 
Intercompany notes payable
 
 
 
 
 
 
1,547.9 
1,693.9 
 
 
6,270.0 
6,138.9 
 
 
(7,817.9)
(7,832.8)
 
 
 
 
Total liabilities
6,887.9 
6,950.0 
 
 
4,724.0 
4,501.9 
 
 
4,725.4 
4,907.1 
 
 
8,927.9 
8,754.6 
 
 
(11,489.4)
(11,213.6)
 
 
6,887.9 
6,950.0 
 
 
MCBC stockholders' equity
8,962.0 
8,605.2 
 
 
8,962.0 
8,605.2 
 
 
18,943.8 
18,332.5 
 
 
4,593.6 
4,487.0 
 
 
(23,537.4)
(22,819.5)
 
 
8,962.0 
8,605.2 
 
 
Intercompany notes receivable
 
 
 
 
(3.2)
(3.2)
 
 
(6,459.4)
(6,329.2)
 
 
(1,355.3)
(1,500.4)
 
 
7,817.9 
7,832.8 
 
 
 
 
Total stockholders' equity
 
 
 
 
8,958.8 
8,602.0 
 
 
12,484.4 
12,003.3 
 
 
3,238.3 
2,986.6 
 
 
(15,719.5)
(14,986.7)
 
 
8,962.0 
8,605.2 
 
 
Noncontrolling interests
23.1 
24.9 
 
 
 
 
 
 
23.1 
24.9 
 
 
 
 
23.1 
24.9 
 
 
Total equity
8,985.1 
8,630.1 
 
 
8,958.8 
8,602.0 
 
 
12,484.4 
12,003.3 
 
 
3,261.4 
3,011.5 
 
 
(15,719.5)
(14,986.7)
 
 
8,985.1 
8,630.1 
 
 
Total liabilities and equity
$ 15,873.0 
$ 15,580.1 
 
 
$ 13,682.8 
$ 13,103.9 
 
 
$ 17,209.8 
$ 16,910.4 
 
 
$ 12,189.3 
$ 11,766.1 
 
 
$ (27,208.9)
$ (26,200.3)
 
 
$ 15,873.0 
$ 15,580.1 
 
 
Supplemental Guarantor Information Cash Flows (Details) (USD $)
In Millions, unless otherwise specified
6 Months Ended
Jun. 30, 2014
Jun. 30, 2013
Jun. 29, 2013
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
 
 
 
Net cash provided by (used in) operating activities
$ 576.0 
 
$ 591.0 
Cash flows from investing activities:
 
 
 
Additions to properties
(126.4)
 
(149.7)
Proceeds from sales of properties and other assets
4.1 
 
4.9 
Investment in MillerCoors
(764.4)
 
(615.3)
Proceeds from sale of business
 
2.0 
Investment in and advances to an unconsolidated affiliate
 
2.8 
Loan repayments
4.0 
 
4.5 
Loan advances
(3.3)
 
(3.7)
Net cash provided by (used in) investing activities
(194.1)
 
(244.9)
Cash flows from financing activities:
 
 
 
Exercise of stock options under equity compensation plans
27.7 
 
63.1 
Excess tax benefits from share-based compensation
3.2 
 
5.4 
Dividends paid
(136.7)
 
(116.8)
Dividends paid to noncontrolling interest holders
(2.4)
 
(1.2)
Payments for purchase of noncontrolling interest
(0.4)
 
(0.2)
Debt issuance costs
(1.8)
 
(0.2)
Payments on long-term debt and capital lease obligations
(62.2)
 
(52.4)
Payments on short-term borrowings
(23.3)
 
(15.1)
Payments on settlement of derivative instruments
65.2 
 
35.1 
Net proceeds from (payments on) revolving credit facilities and commercial paper
(214.3)
 
(2.9)
Net cash provided by (used in) financing activities
(323.1)
 
(144.1)
Cash and cash equivalents:
 
 
 
Net increase (decrease) in cash and cash equivalents
58.8 
 
202.0 
Effect of foreign exchange rate changes on cash and cash equivalents
4.9 
 
(24.4)
Balance at beginning of year
442.3 
 
624.0 
Balance at end of period
506.0 
 
801.6 
Parent Guarantor and 2012 Issuer [Member]
 
 
 
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
 
 
 
Net cash provided by (used in) operating activities
178.0 
 
174.6 
Cash flows from investing activities:
 
 
 
Additions to properties
(5.5)
(4.6)
 
Proceeds from sales of properties and other assets
 
Investment in MillerCoors
 
Proceeds from sale of business
 
 
Return of capital from MillerCoors
 
Investment in and advances to an unconsolidated affiliate
 
 
Loan repayments
 
Loan advances
 
Net intercompany investing activity
(15.1)
 
Net cash provided by (used in) investing activities
(20.6)
(4.6)
 
Cash flows from financing activities:
 
 
 
Exercise of stock options under equity compensation plans
27.7 
63.1 
 
Excess tax benefits from share-based compensation
3.2 
5.4 
 
Dividends paid
(120.6)
(102.8)
 
Dividends paid to noncontrolling interest holders
 
Payments for purchase of noncontrolling interest
 
Debt issuance costs
(1.8)
(0.2)
 
Payments on long-term debt and capital lease obligations
(0.4)
 
Proceeds from short-term borrowings
 
Payments on short-term borrowings
 
Payments on settlement of derivative instruments
 
Net proceeds from (payments on) revolving credit facilities and commercial paper
(78.7)
 
Change in overdraft balances and other
 
Net intercompany financing activity
 
Net cash provided by (used in) financing activities
(170.6)
(34.5)
 
Cash and cash equivalents:
 
 
 
Net increase (decrease) in cash and cash equivalents
(13.2)
135.5 
 
Effect of foreign exchange rate changes on cash and cash equivalents
 
Balance at beginning of year
90.6 
 
189.8 
Balance at end of period
77.4 
325.3 
 
Subsidiary Guarantors [Member]
 
 
 
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
 
 
 
Net cash provided by (used in) operating activities
292.2 
 
301.1 
Cash flows from investing activities:
 
 
 
Additions to properties
(79.2)
(64.7)
 
Proceeds from sales of properties and other assets
2.8 
1.5 
 
Investment in MillerCoors
(764.4)
(615.3)
 
Proceeds from sale of business
 
 
Return of capital from MillerCoors
691.9 
515.2 
 
Investment in and advances to an unconsolidated affiliate
 
 
Loan repayments
4.0 
4.7 
 
Loan advances
(3.3)
(3.7)
 
Net intercompany investing activity
137.6 
(12.2)
 
Net cash provided by (used in) investing activities
(10.6)
(174.5)
 
Cash flows from financing activities:
 
 
 
Exercise of stock options under equity compensation plans
 
Excess tax benefits from share-based compensation
 
Dividends paid
 
Dividends paid to noncontrolling interest holders
 
Payments for purchase of noncontrolling interest
 
Debt issuance costs
 
Payments on long-term debt and capital lease obligations
(61.7)
(0.4)
 
Proceeds from short-term borrowings
 
Payments on short-term borrowings
 
Payments on settlement of derivative instruments
65.2 
35.1 
 
Net proceeds from (payments on) revolving credit facilities and commercial paper
 
Change in overdraft balances and other
0.6 
 
Net intercompany financing activity
(142.4)
   
 
Net cash provided by (used in) financing activities
(268.7)
(35.5)
 
Cash and cash equivalents:
 
 
 
Net increase (decrease) in cash and cash equivalents
12.9 
91.1 
 
Effect of foreign exchange rate changes on cash and cash equivalents
2.0 
(23.0)
 
Balance at beginning of year
248.7 
 
249.3 
Balance at end of period
263.6 
317.4 
 
Subsidiary Non Guarantors [Member]
 
 
 
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
 
 
 
Net cash provided by (used in) operating activities
109.9 
 
187.5 
Cash flows from investing activities:
 
 
 
Additions to properties
(41.7)
(80.4)
 
Proceeds from sales of properties and other assets
1.3 
3.4 
 
Investment in MillerCoors
 
Proceeds from sale of business
 
2.0 
 
Return of capital from MillerCoors
 
Investment in and advances to an unconsolidated affiliate
 
2.8 
 
Loan repayments
(0.2)
 
Loan advances
 
Net intercompany investing activity
157.5 
 
Net cash provided by (used in) investing activities
117.1 
(78.0)
 
Cash flows from financing activities:
 
 
 
Exercise of stock options under equity compensation plans
 
Excess tax benefits from share-based compensation
 
Dividends paid
(20.2)
(86.2)
 
Dividends paid to noncontrolling interest holders
(2.4)
(1.2)
 
Payments for purchase of noncontrolling interest
(0.4)
(0.2)
 
Debt issuance costs
 
Payments on long-term debt and capital lease obligations
(0.1)
(52.0)
 
Proceeds from short-term borrowings
20.9 
9.3 
 
Payments on short-term borrowings
(23.3)
(15.1)
 
Payments on settlement of derivative instruments
 
Net proceeds from (payments on) revolving credit facilities and commercial paper
(135.6)
(2.9)
 
Change in overdraft balances and other
130.8 
2.0 
 
Net intercompany financing activity
(137.6)
12.2 
 
Net cash provided by (used in) financing activities
(167.9)
(134.1)
 
Cash and cash equivalents:
 
 
 
Net increase (decrease) in cash and cash equivalents
59.1 
(24.6)
 
Effect of foreign exchange rate changes on cash and cash equivalents
2.9 
(1.4)
 
Balance at beginning of year
103.0 
 
184.9 
Balance at end of period
165.0 
158.9 
 
Eliminations [Member]
 
 
 
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
 
 
 
Net cash provided by (used in) operating activities
(4.1)
 
(72.2)
Cash flows from investing activities:
 
 
 
Additions to properties
 
Proceeds from sales of properties and other assets
 
Investment in MillerCoors
 
Proceeds from sale of business
 
 
Return of capital from MillerCoors
 
Investment in and advances to an unconsolidated affiliate
 
 
Loan repayments
 
Loan advances
 
Net intercompany investing activity
(280.0)
12.2 
 
Net cash provided by (used in) investing activities
(280.0)
12.2 
 
Cash flows from financing activities:
 
 
 
Exercise of stock options under equity compensation plans
 
Excess tax benefits from share-based compensation
 
Dividends paid
4.1 
72.2 
 
Dividends paid to noncontrolling interest holders
 
Payments for purchase of noncontrolling interest
   
 
Debt issuance costs
 
Payments on long-term debt and capital lease obligations
 
Proceeds from short-term borrowings
 
Payments on short-term borrowings
 
Payments on settlement of derivative instruments
 
Net proceeds from (payments on) revolving credit facilities and commercial paper
 
Change in overdraft balances and other
 
Net intercompany financing activity
280.0 
(12.2)
 
Net cash provided by (used in) financing activities
284.1 
60.0 
 
Cash and cash equivalents:
 
 
 
Net increase (decrease) in cash and cash equivalents
 
Effect of foreign exchange rate changes on cash and cash equivalents
 
Balance at beginning of year
 
Balance at end of period
 
Consolidated [Member]
 
 
 
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
 
 
 
Net cash provided by (used in) operating activities
576.0 
 
591.0 
Cash flows from investing activities:
 
 
 
Additions to properties
(126.4)
(149.7)
 
Proceeds from sales of properties and other assets
4.1 
4.9 
 
Investment in MillerCoors
(764.4)
(615.3)
 
Proceeds from sale of business
 
2.0 
 
Return of capital from MillerCoors
691.9 
515.2 
 
Investment in and advances to an unconsolidated affiliate
 
(2.8)
 
Loan repayments
4.0 
4.5 
 
Loan advances
(3.3)
(3.7)
 
Net intercompany investing activity
 
Net cash provided by (used in) investing activities
(194.1)
(244.9)
 
Cash flows from financing activities:
 
 
 
Exercise of stock options under equity compensation plans
27.7 
63.1 
 
Excess tax benefits from share-based compensation
3.2 
5.4 
 
Dividends paid
(136.7)
(116.8)
 
Dividends paid to noncontrolling interest holders
(2.4)
1.2 
 
Payments for purchase of noncontrolling interest
(0.4)
(0.2)
 
Debt issuance costs
(1.8)
(0.2)
 
Payments on long-term debt and capital lease obligations
(62.2)
(52.4)
 
Proceeds from short-term borrowings
20.9 
9.3 
 
Payments on short-term borrowings
(23.3)
(15.1)
 
Payments on settlement of derivative instruments
65.2 
35.1 
 
Net proceeds from (payments on) revolving credit facilities and commercial paper
(214.3)
(2.9)
 
Change in overdraft balances and other
131.4 
2.0 
 
Net intercompany financing activity
 
Net cash provided by (used in) financing activities
(323.1)
(144.1)
 
Cash and cash equivalents:
 
 
 
Net increase (decrease) in cash and cash equivalents
58.8 
202.0 
 
Effect of foreign exchange rate changes on cash and cash equivalents
4.9 
(24.4)
 
Balance at beginning of year
442.3 
 
624.0 
Balance at end of period
$ 506.0 
$ 801.6