MOLSON COORS BREWING CO, 10-Q filed on 8/6/2015
Quarterly Report
Document and Entity Information Document
6 Months Ended
Jun. 30, 2015
Jul. 31, 2015
Common Class A [Member]
Jul. 31, 2015
Common Class B [Member]
Jul. 31, 2015
Class A Exchangeable Shares [Member]
Jul. 31, 2015
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, 2015 
 
 
 
 
Document Fiscal Year Focus
2015 
 
 
 
 
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
 
2,562,594 
162,773,925 
2,891,240 
16,819,014 
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (USD $)
In Millions, except Per Share data, unless otherwise specified
3 Months Ended 6 Months Ended
Jun. 30, 2015
Jun. 30, 2014
Jun. 30, 2015
Jun. 30, 2014
Sales
$ 1,433.0 
$ 1,685.9 
$ 2,436.2 
$ 2,864.2 
Excise taxes
(427.3)
(497.4)
(730.5)
(859.7)
Net sales
1,005.7 
1,188.5 
1,705.7 
2,004.5 
Cost of goods sold
(579.9)
(683.3)
(1,034.7)
(1,206.5)
Gross profit
425.8 
505.2 
671.0 
798.0 
Marketing, general and administrative expenses
(283.3)
(327.8)
(523.9)
(591.7)
Special items, net
(33.7)
(2.7)
(42.3)
49.8 
Equity income in MillerCoors
205.5 
190.1 
334.8 
312.9 
Operating income (loss)
314.3 
364.8 
439.6 
569.0 
Interest income (expense), net
(30.6)
(36.2)
(59.8)
(71.6)
Other income (expense), net
6.3 
0.7 
3.7 
1.5 
Income (loss) from continuing operations before income taxes
290.0 
329.3 
383.5 
498.9 
Income tax benefit (expense)
(58.4)
(36.4)
(71.2)
(41.2)
Net Income (loss) from continuing operations
231.6 
292.9 
312.3 
457.7 
Income (loss) from discontinued operations, net of tax
(0.3)
0.2 
1.6 
(1.7)
Net income (loss) including noncontrolling interests
231.3 
293.1 
313.9 
456.0 
Net (income) loss attributable to noncontrolling interests
(2.3)
(2.2)
(3.8)
(1.7)
Net income (loss) attributable to Molson Coors Brewing Company
229.0 
290.9 
310.1 
454.3 
Basic net income (loss) attributable to Molson Coors Brewing Company per share:
 
 
 
 
From continuing operations (in dollars per share)
$ 1.23 
$ 1.57 
$ 1.66 
$ 2.47 
From discontinued operations (in dollars per share)
$ 0.00 
$ 0.00 
$ 0.01 
$ (0.01)
Basic net income (loss) attributable to Molson Coors Brewing Company per share
$ 1.23 
$ 1.57 
$ 1.67 
$ 2.46 
Diluted net income (loss) attributable to Molson Coors Brewing Company per share:
 
 
 
 
From continuing operations (in dollars per share)
$ 1.23 
$ 1.56 
$ 1.65 
$ 2.46 
From discontinued operations (in dollars per share)
$ 0.00 
$ 0.00 
$ 0.01 
$ (0.01)
Diluted net income (loss) attributable to Molson Coors Brewing Company per share
$ 1.23 
$ 1.56 
$ 1.66 
$ 2.45 
Weighted average shares - basic (in shares)
185.7 
184.8 
185.8 
184.5 
Weighted average shares - diluted (in shares)
186.5 
185.9 
186.7 
185.7 
Amounts attributable to Molson Coors Brewing Company
 
 
 
 
Net income (loss) from continuing operations
229.3 
290.7 
308.5 
456.0 
Income (loss) from discontinued operations, net of tax
(0.3)
0.2 
1.6 
(1.7)
Net income (loss) attributable to Molson Coors Brewing Company
$ 229.0 
$ 290.9 
$ 310.1 
$ 454.3 
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) (USD $)
In Millions, unless otherwise specified
3 Months Ended 6 Months Ended
Jun. 30, 2015
Jun. 30, 2014
Jun. 30, 2015
Jun. 30, 2014
Net income (loss) including noncontrolling interests
$ 231.3 
$ 293.1 
$ 313.9 
$ 456.0 
Other comprehensive income (loss), net of tax:
 
 
 
 
Foreign currency translation adjustments
239.7 
160.1 
(424.6)
(21.9)
Unrealized gain (loss) on derivative instruments
(10.3)
(10.6)
8.6 
3.9 
Reclassification of derivative (gain) loss to income
(1.6)
(2.4)
(3.0)
(5.6)
Pension and other postretirement benefit adjustments
0 
0 
(1.8)
0 
Amortization of net prior service (benefit) cost and net actuarial (gain) loss to income
9.3 
7.8 
18.3 
15.4 
Ownership share of unconsolidated subsidiaries' other comprehensive income (loss)
(2.5)
7.6 
(0.3)
9.2 
Total other comprehensive income (loss), net of tax
234.6 
162.5 
(402.8)
1.0 
Comprehensive income (loss)
465.9 
455.6 
(88.9)
457.0 
Comprehensive (income) loss attributable to noncontrolling interests
(2.3)
(2.2)
(3.8)
(1.7)
Comprehensive income (loss) attributable to Molson Coors Brewing Company
$ 463.6 
$ 453.4 
$ (92.7)
$ 455.3 
CONDENSED CONSOLIDATED BALANCE SHEETS (USD $)
In Millions, unless otherwise specified
Jun. 30, 2015
Dec. 31, 2014
Current assets:
 
 
Cash and cash equivalents
$ 413.8 
$ 624.6 
Accounts receivable, net
595.1 
527.7 
Other receivables, net
90.5 
94.0 
Inventories:
 
 
Finished, net
175.5 
135.3 
In process
21.5 
20.7 
Raw materials
35.2 
34.5 
Packaging materials, net
12.1 
11.7 
Total inventories, net
244.3 
202.2 
Other current assets, net
105.3 
103.2 
Deferred tax assets
27.2 
27.2 
Total current assets
1,476.2 
1,578.9 
Properties, net
1,709.4 
1,798.0 
Goodwill
2,115.3 
2,191.6 
Other intangibles, net
5,373.3 
5,755.8 
Investment in MillerCoors
2,452.9 
2,388.6 
Deferred tax assets
51.2 
58.2 
Notes receivable, net
22.6 
21.6 
Other assets
196.3 
203.6 
Total assets
13,397.2 
13,996.3 
Current liabilities :
 
 
Accounts payable and other current liabilities
1,332.9 
1,305.0 
Deferred tax liabilities
179.0 
164.8 
Current portion of long-term debt and short-term borrowings
832.4 
849.4 
Discontinued operations
5.2 
6.1 
Total current liabilities
2,349.5 
2,325.3 
Long-term debt
2,305.2 
2,337.1 
Pension and postretirement benefits
269.0 
542.9 
Deferred tax liabilities
739.0 
784.3 
Unrecognized tax benefits
25.3 
25.4 
Other liabilities
64.6 
79.7 
Discontinued operations
13.2 
15.5 
Total liabilities
5,765.8 
6,110.2 
Commitments and contingencies (Note 16)
   
   
Capital stock:
 
 
Preferred stock, non-voting, no par value (authorized: 25.0 shares; none issued)
0 
0 
Paid-in capital
3,937.2 
3,871.2 
Retained earnings
4,597.7 
4,439.9 
Accumulated other comprehensive income (loss)
(1,301.2)
(898.4)
Class B common stock held in treasury at cost (7.5 shares and 7.5 shares, respectively)
(371.4)
(321.1)
Total Molson Coors Brewing Company stockholders' equity
7,607.1 
7,863.3 
Noncontrolling interests
24.3 
22.8 
Total equity
7,631.4 
7,886.1 
Total liabilities and equity
13,397.2 
13,996.3 
Class A common stock, voting [Member]
 
 
Capital stock:
 
 
Common stock - Class A, $0.01 par value (authorized: 500.0 shares; issued and outstanding: 2.6 shares and 2.6 shares, respectively); Class B, $0.01 par value (authorized: 500.0 shares; issued and outstanding: 171.5 shares and 169.9 shares, respectively)
0 
0 
Class B common stock, non-voting [Member]
 
 
Capital stock:
 
 
Common stock - Class A, $0.01 par value (authorized: 500.0 shares; issued and outstanding: 2.6 shares and 2.6 shares, respectively); Class B, $0.01 par value (authorized: 500.0 shares; issued and outstanding: 171.5 shares and 169.9 shares, respectively)
1.7 
1.7 
Class A Exchangeable Shares [Member]
 
 
Capital stock:
 
 
Exchangeable shares - Class A, no par value (issued and outstanding: 2.9 shares and 2.9 shares, respectively); Class B, no par value (issued and outstanding: 16.9 shares and 17.6 shares, respectively)
108.3 
108.5 
Class B Exchangeable Shares [Member]
 
 
Capital stock:
 
 
Exchangeable shares - Class A, no par value (issued and outstanding: 2.9 shares and 2.9 shares, respectively); Class B, no par value (issued and outstanding: 16.9 shares and 17.6 shares, respectively)
$ 634.8 
$ 661.5 
CONSOLIDATED BALANCE SHEETS (PARENTHETICALS) (USD $)
In Millions, except Per Share data, unless otherwise specified
Jun. 30, 2015
Dec. 31, 2014
Preferred Stock, Non-voting, No Par Value
$ 0 
$ 0 
Preferred Stock, Shares Authorized
25.0 
25.0 
Preferred Stock, Shares Issued
0 
0 
Treasury Stock, Shares
8.2 
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
171.5 
169.9 
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
16.9 
17.6 
Exchangeable Stock, Shares Outstanding
16.9 
17.6 
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (USD $)
In Millions, unless otherwise specified
6 Months Ended
Jun. 30, 2015
Jun. 30, 2014
Cash flows from operating activities:
 
 
Net income (loss) including noncontrolling interests
$ 313.9 
$ 456.0 
Adjustments to reconcile net income to net cash provided by operating activities:
 
 
Depreciation and amortization
158.9 
158.4 
Amortization of debt issuance costs and discounts
2.6 
4.2 
Share-based compensation
8.1 
12.1 
(Gain) loss on sale or impairment of properties and other assets, net
(3.5)
3.0 
Deferred income tax (benefit) expense
(9.5)
9.8 
Equity in net income of other unconsolidated affiliates
(1.9)
(2.7)
Distributions from other unconsolidated affiliates
0 
11.1 
Excess tax benefits from share-based compensation
(7.6)
(3.2)
Unrealized (gain) loss on foreign currency fluctuations and derivative instruments, net
4.9 
(3.2)
Change in current assets and liabilities (net of impact of business combinations) and other
(266.2)
(71.2)
(Gain) loss from discontinued operations
(1.6)
1.7 
Net cash provided by operating activities
198.1 
576.0 
Cash flows from investing activities:
 
 
Additions to properties
(139.8)
(126.4)
Proceeds from sales of properties and other assets
7.5 
4.1 
Acquisition of businesses, net of cash acquired
(51.1)
0 
Investment in MillerCoors
(758.1)
(764.4)
Return of capital from MillerCoors
692.9 
691.9 
Loan repayments
19.0 
4.0 
Loan advances
(26.1)
(3.3)
Other
(2.4)
0 
Net cash used in investing activities
(258.1)
(194.1)
Cash flows from financing activities:
 
 
Exercise of stock options under equity compensation plans
28.6 
27.7 
Excess tax benefits from share-based compensation
7.6 
3.2 
Dividends paid
(152.3)
(136.7)
Payments for the purchase of Treasury Stock
(50.1)
0 
Payments on long-term debt and capital lease obligations
(0.7)
(62.2)
Proceeds from short-term borrowings
27.9 
20.9 
Payments on short-term borrowings
(14.6)
(23.3)
Payments on settlement of derivative instruments
0 
(65.2)
Net proceeds from (payments on) revolving credit facilities and commercial paper
67.2 
(214.3)
Change in overdraft balances and other
(38.3)
126.8 
Net cash provided by (used in) financing activities
(124.7)
(323.1)
Cash and cash equivalents:
 
 
Net increase (decrease) in cash and cash equivalents
(184.7)
58.8 
Effect of foreign exchange rate changes on cash and cash equivalents
(26.1)
4.9 
Balance at beginning of year
624.6 
442.3 
Balance at end of period
413.8 
506.0 
MillerCoors
 
 
Adjustments to reconcile net income to net cash provided by operating activities:
 
 
Equity in net income of other unconsolidated affiliates
(334.8)
(312.9)
Distributions from other unconsolidated affiliates
$ 334.8 
$ 312.9 
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. Unless otherwise indicated, information in this report is presented in U.S. dollars ("USD" or "$") and comparisons are to comparable prior periods.
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 U.S. ("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 U.S. Securities and Exchange Commission. 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, 2014 ("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 2015.
The results of operations for the three and six months ended June 30, 2015, are not necessarily indicative of the results that may be achieved for the full fiscal year.
New Accounting Pronouncements
New Accounting Pronouncements
New Accounting Pronouncements
In July 2015, the Financial Accounting Standards Board ("FASB") issued authoritative guidance intended to simplify the measurement of inventory. The amendment requires entities to measure in-scope inventory at the lower of cost and net realizable value, and replaces the current requirement to measure in-scope inventory at the lower of cost or market, which considers replacement cost, net realizable value, and net realizable value less an approximate normal profit margin. This amendment will more closely align the measurement of inventory under U.S. GAAP with the measurement of inventory under International Financial Reporting Standards. This guidance is effective for annual reporting periods, and interim periods within those annual periods, beginning after December 15, 2016. The amendment should be applied prospectively with early adoption permitted. We are currently evaluating the potential impact on our financial position and results of operations upon adoption of this guidance.
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. In July 2015, the FASB affirmed its proposal to defer the effective date of the new revenue recognition standard for all entities by one year. As a result, the requirements of the new standard are effective for annual reporting periods beginning after December 15, 2017, and interim periods within those annual periods. Concurrently, the FASB also affirmed the proposal to permit all entities to apply the new revenue recognition standard early, but not before the original effective date. The use of either a full retrospective or cumulative effect transition method is permitted. We have not yet selected a transition method and are currently evaluating the potential impact on our financial position and results of operations upon adoption of this guidance.
In May 2015, the FASB issued an amendment to the fair value measurement guidance that applies to reporting entities that elect to measure the fair value of an investment using the net asset value (“NAV”) per share (or its equivalent) practical expedient. Under the new guidance, investments for which fair value is measured, or are eligible to be measured, using the NAV per share practical expedient are excluded from the fair value hierarchy. The amendment also removes certain disclosure requirements for these investments, and is effective for reporting periods beginning after December 15, 2015, with early adoption permitted. This amendment will result in revisions to the presentation of the fair value hierarchy within Part II - Item 8. Financial Statements and Supplementary Data, Note 16, “Employee Retirement Plans and Postretirement Benefits" of our Annual Report.
In April 2015, the FASB issued authoritative guidance intended to simplify the presentation of debt issuance costs. These amendments require that debt issuance costs be presented as a direct deduction from the carrying amount of the related debt liabilities, consistent with the presentation of debt discounts. This will result in the elimination of debt issuance costs as an asset and will reduce the carrying value of our debt liabilities. This guidance is effective for annual reporting periods, and interim periods within those annual periods, beginning after December 15, 2015. The guidance should be applied retrospectively with early adoption permitted. We believe the impact on our financial position and results of operations upon adoption of this guidance will be immaterial.
In February 2015, the FASB issued authoritative guidance to improve targeted areas of consolidation accounting by requiring amendments to both the variable interest entity and voting interest models. The new standard modifies the evaluation of whether some legal entities, specifically limited partnerships and similar legal entities, are variable interest entities ("VIEs") or voting interest entities, and eliminates the presumption that a general partner should consolidate a limited partnership. Further, the new standard affects the consolidation analysis for companies of reporting entities in several industries that are involved with VIEs, particularly those with fee arrangements, and also amends the guidance for assessing how related party relationships affect the VIE consolidation analysis. This guidance is effective for annual reporting periods, and interim periods within those annual periods, beginning after December 15, 2015. The amendments may be applied using either a full retrospective or cumulative effect transition method with early adoption permitted. We are currently evaluating the potential impact on our financial position and results of operations upon adoption of this guidance.
Other than the items noted above, there have been no new accounting pronouncements not yet effective or adopted in the current year that we believe have a significant impact, or potential significant impact, to our consolidated financial statements.
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 sales for the three and six months ended June 30, 2015, and June 30, 2014, respectively. Net sales represent sales to third-party external customers. Inter-segment transactions impacting sales revenues and income (loss) from continuing operations before income taxes are insignificant (other than those with MillerCoors, see Note 4, "Investments" for additional detail) and eliminated in consolidation.
The following table presents net sales by segment:
 
Three Months Ended
 
Six Months Ended
 
June 30, 2015
 
June 30, 2014
 
June 30, 2015
 
June 30, 2014
 
(In millions)
Canada
$
444.9

 
$
516.5

 
$
758.4

 
$
863.6

Europe
524.8

 
629.4

 
882.7

 
1,067.0

MCI
37.2

 
43.7

 
66.3

 
75.9

Corporate
0.1

 
0.4

 
0.5

 
0.7

Eliminations(1)
(1.3
)
 
(1.5
)
 
(2.2
)
 
(2.7
)
         Consolidated
$
1,005.7

 
$
1,188.5

 
$
1,705.7

 
$
2,004.5


(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, 2015
 
June 30, 2014
 
June 30, 2015
 
June 30, 2014
 
(In millions)
Canada(1)
$
106.1

 
$
120.8

 
$
137.0

 
$
209.1

U.S. 
205.5

 
190.1

 
334.8

 
312.9

Europe(2)
49.0

 
84.5

 
44.9

 
111.5

MCI(3)
(12.2
)
 
(3.7
)
 
(17.6
)
 
(6.7
)
Corporate
(58.4
)
 
(62.4
)
 
(115.6
)
 
(127.9
)
         Consolidated
$
290.0

 
$
329.3

 
$
383.5

 
$
498.9


(1)
Results for the six months ended June 30, 2014, include $63.2 million of income related to the termination of our Modelo Molson Imports, L.P. ("MMI") joint venture in Canada. See Note 4, "Investments" for further discussion. Results for the three and six months ended June 30, 2015, included $8.2 million of charges related to the closure of a bottling line within our Toronto brewery as part of a strategic review of our Canadian supply chain network. See Note 6, "Special Items" for further discussion.
(2)
Results for the three and six months ended June 30, 2015, include charges associated with the closure of one of our U.K. breweries of $9.3 million and $21.1 million for the three and six months ended June 30, 2015, respectively. See Note 6, "Special Items" for further discussion.
Additionally, included in Europe results for the three and six months ended June 30, 2015, are termination charges of $29.4 million partially offset by termination fee income of $19.4 million. See Note 6, "Special Items" for further discussion. Further, results for the six months ended June 30, 2014, include a gain of $13.0 million related to the release of an indirect-tax reserve, inclusive of accrued interest. See Note 15, "Commitments and Contingencies" for further discussion.
(3)
Results for both the three and six months ended June 30, 2015, include $6.4 million of charges related to our decision to substantially restructure our business in China. See Note 6, "Special Items" for further discussion.
The following table presents total assets by segment:
 
As of
 
June 30, 2015
 
December 31, 2014
 
(In millions)
Canada
$
5,121.2


$
5,537.2

U.S. 
2,452.9


2,388.6

Europe
5,412.4


5,773.3

MCI
135.5


75.2

Corporate
275.2


222.0

         Consolidated
$
13,397.2


$
13,996.3

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, 2015, or December 31, 2014. With the exception of the debt guarantee further discussed below, we have not provided any financial support to any of our VIEs during the year 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, 2015, and December 31, 2014, our consolidated VIEs are Cobra Beer Partnership, Ltd. ("Cobra U.K.") and Grolsch U.K. Ltd. ("Grolsch"). Our unconsolidated VIEs are Brewers' Retail Inc. ("BRI") and Brewers' Distributor Ltd. ("BDL").
During the second quarter of 2015, our equity method investment, BRI, entered into a Canadian Dollar ("CAD") 150 million revolving credit facility with Canadian Imperial Bank of Commerce (“CIBC”), maturing one year after issuance, with one year renewal options subject to approval by CIBC. In conjunction with the issuance of the revolving credit facility, we, along with an additional shareholder of BRI, were each required to guarantee 50% of BRI’s obligations under the facility. As a result of this guarantee, we recorded a current liability of $10.8 million as of June 30, 2015. The carrying value of the guarantee equals its fair value, which considers an adjustment for our own non-performance risk and is considered a level 2 measurement. The offset to the guarantee liability was recorded as an adjustment to our equity method investment balance, which carried a negative balance as of June 30, 2015. The guarantee liability was calculated based on our proportionate, 50% share of BRI’s total revolving credit facility outstanding balance at June 30, 2015. The resulting change in equity investment balance during the year due to movements in the guarantee represents a non-cash investing activity.
Equity Investments
Investment in MillerCoors Summarized Financial Information
Condensed Balance Sheets
 
As of
 
June 30, 2015
 
December 31, 2014
 
(In millions)
Current assets
$
923.4

 
$
795.3

Non-current assets
9,005.9

 
9,047.4

Total assets
$
9,929.3

 
$
9,842.7

Current liabilities
$
1,086.1

 
$
1,061.3

Non-current liabilities
1,496.3

 
1,578.8

Total liabilities
2,582.4

 
2,640.1

Noncontrolling interests
20.4

 
23.5

Owners' equity
7,326.5

 
7,179.1

Total liabilities and equity
$
9,929.3

 
$
9,842.7

The following represents our proportionate share in MillerCoors' equity and reconciliation to our investment in MillerCoors:
 
As of
 
June 30, 2015
 
December 31, 2014
 
(In millions, except percentages)
MillerCoors owners' equity
$
7,326.5

 
$
7,179.1

MCBC economic interest
42
%
 
42
%
MCBC proportionate share in MillerCoors' equity
3,077.1

 
3,015.2

Difference between MCBC contributed cost basis and proportionate share of the underlying equity in net assets of MillerCoors(1)
(659.2
)
 
(661.6
)
Accounting policy elections
35.0

 
35.0

Investment in MillerCoors
$
2,452.9

 
$
2,388.6

(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, 2015
 
June 30, 2014
 
June 30, 2015
 
June 30, 2014
 
(In millions)
Net sales
$
2,202.7

 
$
2,206.7

 
$
3,977.3

 
$
3,997.1

Cost of goods sold
(1,240.5
)
 
(1,282.4
)
 
(2,316.7
)
 
(2,376.5
)
Gross profit
$
962.2

 
$
924.3

 
$
1,660.6

 
$
1,620.6

Operating income
$
493.4

 
$
449.8

 
$
802.7

 
$
747.3

Net income attributable to MillerCoors
$
487.2

 
$
445.2

 
$
791.8

 
$
736.4


The following represents our proportionate share in net income attributable to MillerCoors reported under the equity method of accounting:
 
Three Months Ended
 
Six Months Ended
 
June 30, 2015
 
June 30, 2014
 
June 30, 2015
 
June 30, 2014
 
(In millions, except percentages)
Net income attributable to MillerCoors
$
487.2

 
$
445.2

 
$
791.8

 
$
736.4

MCBC economic interest
42
%
 
42
%
 
42
%
 
42
%
MCBC proportionate share of MillerCoors net income(1)
204.6

 
187.0

 
332.6

 
309.3

Amortization of the difference between MCBC contributed cost basis and proportionate share of the underlying equity in net assets of MillerCoors
1.3

 
1.2

 
2.4

 
2.3

Share-based compensation adjustment(1)(2)
(0.4
)
 
1.9

 
(0.2
)
 
1.3

Equity income in MillerCoors
$
205.5

 
$
190.1

 
$
334.8

 
$
312.9


(1)
The sum of the quarterly proportionate share of MillerCoors net income and share-based compensation adjustment amounts may not agree to the year-to-date amounts due to rounding.
(2)
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, 2015
 
June 30, 2014
 
June 30, 2015
 
June 30, 2014
 
(In millions)
Beer sales to MillerCoors
$
3.2

 
$
3.7

 
$
6.0

 
$
6.3

Beer purchases from MillerCoors
$
10.2

 
$
9.1

 
$
19.3

 
$
16.2

Service agreement costs and other charges to MillerCoors
$
0.7

 
$
0.7

 
$
1.3

 
$
1.1

Service agreement costs and other charges from MillerCoors
$
0.2

 
$
0.3

 
$
0.6

 
$
0.5


As of June 30, 2015, and December 31, 2014, we had $8.1 million and $8.3 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, 2015
 
December 31, 2014
 
Total Assets
 
Total Liabilities
 
Total Assets
 
Total Liabilities
 
(In millions)
Grolsch
$
7.1

 
$
2.1

 
$
6.8

 
$
2.9

Cobra U.K.
$
34.7

 
$
0.8

 
$
31.0

 
$
0.8


Termination of MMI Operations
On February 28, 2014, Anheuser-Busch Inbev ("ABI") and MCBC finalized 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 was accounted for under the equity method of accounting.
Following the successful completion of the transition in the first quarter of 2014, we recognized income of $63.2 million (CAD 70.0 million) within special items, reflective of the agreed upon payment received from Modelo for the early termination of the joint venture. Additionally in the first quarter of 2014, 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. Under the MMI arrangement, during the six months ended June 30, 2014, we recognized equity earnings within cost of goods sold of $0.7 million, and 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. These cost recoveries are recorded within marketing, general and administrative expenses.
In accordance with the early termination agreement, the book value of the joint venture's net assets was required to be distributed to the respective joint venture partners for the owners' proportionate ownership interest at the end of the transition period. This distribution was finalized in the third quarter of 2014. Concurrently, we derecognized our equity investment within other non-current assets upon full recovery of our investment carrying value.
Share-Based Payments
Share-Based Payments
Share-Based Payments
The MCBC Incentive Compensation Plan ("Incentive Compensation Plan") was amended and restated effective February 19, 2015, to reaffirm the ability to grant awards that are intended to qualify as performance-based compensation, to extend the term of the Incentive Compensation Plan for ten years and to incorporate certain corporate governance practices. We continue to have only one incentive compensation plan as of June 30, 2015, and all outstanding awards fall under this plan.
During the six months ended June 30, 2015, and June 30, 2014, 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 Incentive Compensation Plan: restricted stock units ("RSUs"), deferred stock units ("DSUs"), performance units ("PUs"), performance share units ("PSUs") 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, 2015
 
June 30, 2014
 
June 30, 2015
 
June 30, 2014
 
(In millions)
Pretax compensation expense
$
4.9

 
$
3.8

 
$
8.1

 
$
12.1

Tax benefit
(1.3
)
 
(1.2
)
 
(2.1
)
 
(3.9
)
After-tax compensation expense
$
3.6

 
$
2.6

 
$
6.0

 
$
8.2

The decrease in expense in the first half of 2015 was primarily driven by accelerated expense related to certain RSUs and PSUs granted in the first quarter of 2014, which were not granted in the first quarter of 2015.
As of June 30, 2015, there was $39.5 million of total unrecognized compensation expense from all share-based compensation arrangements granted under the Incentive Compensation Plan, related to unvested awards. This compensation expense is expected to be recognized over a weighted-average period of 2.2 years.
The following table represents non-vested RSUs, DSUs, PUs and PSUs as of June 30, 2015, and the activity during the six months ended June 30, 2015:
 
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, 2014
0.7

 
$47.75
 
0.5

 
$3.22
 
0.4

 
$50.49
Granted
0.2

 
$70.83
 
—

 
$—
 
0.1

 
$74.42
Vested
(0.2
)
 
$42.85
 
(0.5
)
 
$2.89
 
—

 
$—
Forfeited
(0.1
)
 
$50.17
 
—

 
$—
 
—

 
$—
Non-vested as of June 30, 2015
0.6

 
$55.59
 
—

 
$—
 
0.5

 
$57.05
The weighted-average fair value per unit for the non-vested PSUs is $65.73 as of June 30, 2015.
The following table represents the summary of stock options and stock-only stock appreciation rights ("SOSARs") outstanding as of June 30, 2015, and the activity during the six months ended June 30, 2015:
 
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, 2014
2.2
 
$45.33
 
5.0
 
$
64.6

Granted
0.1
 
$74.81
 
 
 
 
Exercised
(0.8)
 
$44.85
 
 
 
 
Forfeited
—
 
$—
 
 
 
 
Outstanding as of June 30, 2015
1.5
 
$48.28
 
5.1
 
$
32.8

Exercisable at June 30, 2015
1.2
 
$45.13
 
4.3
 
$
30.8

The total intrinsic values of stock options exercised during the six months ended June 30, 2015, and June 30, 2014, were $25.7 million and $15.0 million, respectively. During the six months ended June 30, 2015, and June 30, 2014, cash received from stock option exercises was $28.6 million and $27.7 million, respectively, and the total excess tax benefit from these stock option exercises and other awards was $7.6 million and $3.2 million, respectively.
The fair value of each option granted in the first half of 2015 and 2014 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, 2015
 
June 30, 2014
Risk-free interest rate
1.70%
 
2.29%
Dividend yield
2.20%
 
2.57%
Volatility range
21.65%-29.90%
 
22.66%-26.57%
Weighted-average volatility
23.71%
 
25.59%
Expected term (years)
5.7
 
7.5
Weighted-average fair market value
$13.98
 
$12.78
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 2015 and 2014 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, 2015
 
June 30, 2014
Risk-free interest rate
1.06%
 
0.72%
Dividend yield
2.20%
 
2.57%
Volatility range
12.73%-62.28%
 
12.45%-72.41%
Weighted-average volatility
21.53%
 
21.72%
Expected term (years)
2.8
 
2.8
Weighted-average fair market value
$74.42
 
$58.69

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, 2015, there were 6.8 million shares of the Company's Class B common stock available for issuance as awards under the Incentive Compensation Plan.
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, 2015
 
June 30, 2014
 
June 30, 2015
 
June 30, 2014
 
(In millions)
Employee-related restructuring charges
 
 
 
 
 
 
 
Canada
$
—

 
$
0.1

 
$
—

 
$
5.4

Europe
0.2

 
0.5

 
(1.0
)
 
1.0

MCI(1)
3.2

 
—

 
3.2

 
—

Corporate
—

 
0.3

 
—

 
0.3

Impairments or asset abandonment charges
 
 
 
 
 
 
 
Canada - Intangible asset write-off(2)
—

 
—

 
—

 
4.9

Canada - Asset abandonment(3)
8.2

 
—

 
8.2

 
—

Europe - Asset abandonment(4)
9.3

 
—

 
21.1

 
—

MCI - Asset write-off(1)
3.2

 
—

 
3.2

 
—

Unusual or infrequent items
 
 
 
 
 
 
 
Europe - Flood loss (insurance reimbursement), net(5)
(0.4
)
 
1.8

 
(2.4
)
 
1.8

Termination fees and other (gains) losses
 
 
 
 
 
 
 
Canada - Termination fee income(2)
—

 
—

 
—

 
(63.2
)
Europe - Termination fee expense, net(6)
10.0

 
—

 
10.0

 
—

Total Special items, net
$
33.7

 
$
2.7

 
$
42.3

 
$
(49.8
)

(1)
During the second quarter of 2015, we announced our decision to substantially restructure our business in China and consequently, recognized employee-related and asset write-off charges.
(2)
Upon termination of our MMI operations in the first quarter of 2014, we recognized termination fee income and charges associated with the write-off of the definite-lived intangible asset associated with the joint venture. See Note 4, "Investments" for further discussion.
(3)
During the three and six months ended June 30, 2015, we incurred $8.2 million of charges related to the closure of a bottling line within our Toronto brewery as part of an ongoing strategic review of our Canadian supply chain network.
(4)
In the second quarter of 2015, we completed the closure of the Alton brewery in the U.K. as part of our strategic review of our European supply chain network. As a result, we incurred accelerated depreciation expense in excess of our normal depreciation associated with this brewery of $8.0 million and $19.8 million for the three and six months ended June 30, 2015, respectively, as well as an additional $1.3 million in other charges related to the closure of the brewery. We may continue to incur additional charges associated with the closure, which will also be recorded within special items.
(5)
During the three and six months ended June 30, 2015, we recorded $0.4 million and $2.4 million, respectively, of income for insurance proceeds received related to significant flooding in Czech Republic that occurred during the second quarter of 2013.
(6)
In December 2013, we entered into an agreement with Heineken to early terminate our contract brewing and kegging agreement under which we produced and packaged the Foster's and Kronenbourg brands in the U.K. As a result of the termination, Heineken agreed to pay us an aggregate early termination payment of British Pound ("GBP") 13.0 million, of which we received GBP 5.0 million in 2014 and the remaining GBP 8.0 million on April 30, 2015. The full amount of the termination payment ($19.4 million upon recognition) is included in income within special items for the three and six months ended June 30, 2015, following the completion of the transition period.
Separately, in June 2015, we terminated our agreement with Carlsberg whereby it held the exclusive distribution rights for the Staropramen brand in the U.K. As a result of this termination, we agreed to pay Carlsberg an early termination payment of GBP 19.0 million ($29.4 million at payment date), which was recognized as a special charge during the second quarter of 2015. The transition period concludes on December 27, 2015, at which time we will have the exclusive distribution rights of the Staropramen brand in the U.K.
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. During 2014, we finalized our restructuring initiatives that began in 2012. Additionally, in the second quarter of 2015, we completed the closure of the Alton brewing facility within our Europe segment resulting in restructuring charges as noted above. In the second quarter of 2015, we recognized employee-related charges within our MCI segment following the decision to substantially restructure our business in China as stated above. As a result of this action, employment levels will be reduced by approximately 125 full-time employees. During 2015, we continued our ongoing assessment of our supply chain strategies across our segments in order to align with our cost saving objectives. We will continue to evaluate our supply chain network and seek opportunities for further efficiencies and cost savings, and we therefore may incur additional restructuring related charges in the future.
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 to 18 months. The table below summarizes the activity in the restructuring accruals by segment:
 
Canada
 
Europe
 
MCI
 
Corporate
 
Total
 
(In millions)
Total at December 31, 2014
$
3.8

 
$
11.5

 
$
—

 
$
0.2

 
$
15.5

Charges incurred
—

 
0.2

 
3.2

 
—

 
3.4

Payments made
(2.1
)
 
(5.7
)
 
—

 
(0.2
)
 
(8.0
)
Changes in estimates
—

 
(1.2
)
 
—

 
—

 
(1.2
)
Foreign currency and other adjustments
(0.2
)
 
(0.2
)
 
—

 
—

 
(0.4
)
Total at June 30, 2015
$
1.5

 
$
4.6

 
$
3.2

 
$
—

 
$
9.3

 
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



Other Income and Expense
Other Income and Expense
Other Income and Expense
 
Three Months Ended
 
Six Months Ended
 
June 30, 2015
 
June 30, 2014
 
June 30, 2015
 
June 30, 2014
 
(In millions)
Gain on sale of non-operating asset
$
3.3

 
$
—

 
$
3.3

 
$
—

Gain (loss) from foreign exchange and derivative activity
2.7

 
0.5

 
0.1

 
1.3

Other, net
0.3

 
0.2

 
0.3

 
0.2

Other income (expense), net
$
6.3

 
$
0.7

 
$
3.7

 
$
1.5



Income Tax
Income Tax
Income Tax
Our effective tax rates for the second quarter of 2015 and 2014 were approximately 20% and 11%, respectively. For the first half of 2015 and 2014, our effective tax rates were approximately 19% and 8%, respectively. Our effective tax rates were significantly lower than the federal statutory rate of 35% primarily due to lower effective income tax rates applicable to our foreign businesses, driven by lower statutory income tax rates and tax planning impacts on statutory taxable income, as well as the impact of discrete items further discussed below. The effective tax rate for the second quarter and first half of 2015 increased versus 2014, primarily due to lower pretax income in 2015 and a lower net discrete tax impact recognized in 2015. Our total net discrete tax expense was $0.2 million in the second quarter of 2015, versus a $12.2 million net discrete tax benefit recognized in the second quarter of 2014. The net discrete tax benefit recognized in 2014 was primarily due to the finalization of our previous bilateral advanced pricing agreement ("BAPA") between the U.S. and Canada tax authorities in the second quarter of 2014. The implementation of the BAPA and reversal of the related unrecognized tax benefits resulted in a net discrete income tax benefit of approximately $21 million in the second quarter of 2014. 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.
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.
In March 2015, we formally submitted a renewal application of our BAPA between the U.S. and Canada tax authorities. The BAPA submission covers both historical and future tax years and is subject to approval by both taxing authorities. The prior year impacts of the submission were recognized as a discrete item in the first quarter of 2015, and the related tax implications for the current year have been incorporated into our projected full year effective tax rate.
Earnings per Share ("EPS")
Earnings per Share ("EPS")
Earnings Per Share ("EPS")
Basic 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 include RSUs, DSUs, PUs, PSUs, stock options and SOSARs. 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, 2015
 
June 30, 2014
 
June 30, 2015
 
June 30, 2014
 
(In millions, except per share amounts)
Amounts attributable to Molson Coors Brewing Company:
 
 
 
 
 
 
 
Net income (loss) from continuing operations
$
229.3

 
$
290.7

 
$
308.5

 
$
456.0

Income (loss) from discontinued operations, net of tax
(0.3
)
 
0.2

 
1.6

 
(1.7
)
Net income (loss) attributable to Molson Coors Brewing Company
$
229.0

 
$
290.9

 
$
310.1

 
$
454.3

Weighted-average shares for basic EPS
185.7

 
184.8

 
185.8

 
184.5

Effect of dilutive securities:
 
 
 
 
 
 
 
RSUs, DSUs, PUs and PSUs
0.4

 
0.4

 
0.4

 
0.6

Stock options and SOSARs
0.4

 
0.7

 
0.5

 
0.6

Weighted-average shares for diluted EPS
186.5

 
185.9

 
186.7

 
185.7

Basic net income (loss) attributable to Molson Coors Brewing Company per share(1):
 
 
 
 

 

From continuing operations
$
1.23

 
$
1.57

 
$
1.66

 
$
2.47

From discontinued operations
—

 
—

 
0.01

 
(0.01
)
Basic net income (loss) attributable to Molson Coors Brewing Company per share
$
1.23

 
$
1.57

 
$
1.67

 
$
2.46

Diluted net income (loss) attributable to Molson Coors Brewing Company per share(1):
 
 
 
 


 
 
From continuing operations
$
1.23

 
$
1.56

 
$
1.65

 
$
2.46

From discontinued operations
—

 
—

 
0.01

 
(0.01
)
Diluted net income (loss) attributable to Molson Coors Brewing Company per share
$
1.23

 
$
1.56

 
$
1.66

 
$
2.45

Dividends declared and paid per share
$
0.41

 
$
0.37

 
$
0.82

 
$
0.74


(1)
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 period for each reporting period presented. 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 EPS:
 
Three Months Ended
 
Six Months Ended
 
June 30, 2015
 
June 30, 2014
 
June 30, 2015
 
June 30, 2014
 
(In millions)
RSUs, stock options and SOSARs
0.1

 
0.1

 
0.1

 
—


Share Repurchase Program
In February 2015, our Board of Directors approved and authorized a new program to repurchase up to $1.0 billion of our Class A and Class B common stock with a program term of four years. Under the program, shares may be repurchased in privately negotiated and/or open market transactions, including under plans complying with Rule 10b5-1 under the Exchange Act. The number, price and timing of the repurchases will be at the Company’s sole discretion and will be evaluated depending on market conditions, liquidity needs or other factors. The Company’s Board of Directors may suspend, modify or terminate the program at any time without prior notice. This repurchase program replaces and supersedes any repurchase programs previously approved by the Board of Directors. Under Delaware state law, these shares are not retired, and the issuer has the right to resell any of the shares repurchased. Beginning in April 2015, under this program, we entered into an accelerated share repurchase agreement (“ASR”) with a financial institution. In exchange for up-front payments, the financial institution delivers shares of our common stock during the purchase periods of each ASR. The total number of shares ultimately delivered, and therefore the average repurchase price paid per share, will be determined at the end of the applicable purchase period of each ASR based on the volume weighted-average price of our common stock during that period. The up-front payments for the treasury stock are accounted for as a reduction to shareholders’ equity in the unaudited condensed consolidated balance sheet in the periods the payments are made. We reflect the ASR as a repurchase of common stock in the period delivered for purposes of calculating earnings per share and as forward contracts indexed to its own common stock. The ASR met all of the applicable criteria for equity classification, and therefore, is not accounted for as a derivative instrument.
During the second quarter of 2015, we purchased a total of 0.7 million shares of our Class B common stock under an ASR for $50 million. In July 2015, under a separate ASR, we received Class B common stock for an up-front payment of $50 million. The total number of shares ultimately delivered under this ASR, and therefore the average repurchase price paid per share, will be determined at the end of the purchase period in September 2015.
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, 2015:
 
Canada
 
Europe
 
MCI
 
Consolidated
 
(In millions)
Balance at December 31, 2014
$
656.5

 
$
1,528.0

 
$
7.1

 
$
2,191.6

Business acquisition(1)
—

 
—

 
11.6

 
11.6

Foreign currency translation
(45.8
)
 
(41.8
)
 
(0.3
)
 
(87.9
)
Balance at June 30, 2015
$
610.7

 
$
1,486.2

 
$
18.4

 
$
2,115.3


(1)
On April 1, 2015, we completed the acquisition of Mount Shivalik Breweries Ltd., a regional brewer in India. As part of the preliminary purchase price accounting, goodwill generated in conjunction with this acquisition has been recorded within our MCI segment beginning in the second quarter of 2015 and included within the India reporting unit of our MCI segment for purposes of our annual goodwill impairment testing.
The following table presents details of our intangible assets, other than goodwill, as of June 30, 2015:
 
Useful life
 
Gross
 
Accumulated
amortization
 
Net
 
(Years)
 
(In millions)
Intangible assets subject to amortization:
 
 
 
 
 
 
 
Brands
 3 - 40
 
$
467.9

 
$
(230.5
)
 
$
237.4

License agreements and distribution rights
 3 - 28
 
105.5

 
(94.0
)
 
11.5

Other
 2 - 8
 
31.9

 
(30.1
)
 
1.8

Intangible assets not subject to amortization:
 
 
 
 
 
 
 
Brands
 Indefinite
 
4,295.4

 
—

 
4,295.4

Distribution networks
 Indefinite
 
809.7

 
—

 
809.7

Other
 Indefinite
 
17.5

 
—

 
17.5

Total
 
 
$
5,727.9

 
$
(354.6
)
 
$
5,373.3


The following table presents details of our intangible assets, other than goodwill, as of December 31, 2014:
 
Useful life
 
Gross
 
Accumulated
amortization
 
Net
 
(Years)
 
(In millions)
Intangible assets subject to amortization:
 
 
 
 
 
 
 
Brands
3 - 40
 
$
483.5

 
$
(229.1
)
 
$
254.4

License agreements and distribution rights
3 - 28
 
122.0

 
(101.1
)
 
20.9

Other
2 - 8
 
31.7

 
(29.4
)
 
2.3

Intangible assets not subject to amortization:
 
 
 
 
 
 
 
Brands
Indefinite
 
4,590.2

 
—

 
4,590.2

Distribution networks
Indefinite
 
870.5

 
—

 
870.5

Other
Indefinite
 
17.5

 
—

 
17.5

Total
 
 
$
6,115.4

 
$
(359.6
)
 
$
5,755.8

The changes in the gross carrying amounts of intangibles from December 31, 2014, to June 30, 2015, are primarily driven by the impact of foreign exchange rates, as a significant amount of intangibles are denominated in foreign currencies. Additionally, we wrote-off the gross value and accumulated amortization associated with our licensing agreement with Miller in Canada upon finalizing the termination in the first quarter of 2015, and we acquired a definite-lived brand as part of our acquisition in India in the second quarter of 2015.
Amortization expense of intangible assets was $5.9 million and $10.4 million for the three months ended June 30, 2015, and June 30, 2014, respectively, and $13.7 million and $21.0 million for the six months ended June 30, 2015, and June 30, 2014, respectively. This expense is presented within marketing, general and administrative expenses on the unaudited condensed consolidated statements of operations and includes the $4.9 million 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.
During the fourth quarter of 2014, we changed the date of our annual impairment test for goodwill and indefinite lived intangible assets from July 1, the first day of our fiscal third quarter, to October 1, the first day of our fiscal fourth quarter. The change was made to more closely align the impairment testing date with our strategic and annual operating planning and forecasting process. The change in accounting principle is preferable, as it will align the impairment testing data with the most current information available from the annual operating plan, and allow for the completion of the annual impairment testing closer to the end of our annual reporting period. Based on the results of our testing performed as of October 1, 2014, we concluded there were no impairments of goodwill within our Europe, Canada or India reporting units or impairments of our indefinite-lived intangible assets. The fair values determined during our October 1, 2014, testing were largely consistent with the results of our July 1, 2014, testing. See further discussion below.
In April 2014, the Ontario Premier's Advisory Council on Government Assets (the "Council") began a review that included evaluating the beer retailing and distribution system in Ontario, for which BRI is the primary beer retail and distribution channel. In April 2015, as a result of this review and our negotiations with the Council, we, along with the other owners of BRI, agreed, in principle subject to entry into definitive binding documents, to enter into a new beer framework agreement (the "New Framework") with the Province of Ontario, currently anticipated to be finalized and effective in the second half of 2015, with the implementation of some of the provisions to begin in the fourth quarter of 2015. The New Framework is designed to further enhance the overall beer retail and distribution system within Ontario, as well as provide easier access to market for small brewers. The New Framework will include the implementation of an additional CAD 100.0 million annual tax on all beer volume sold in Ontario, which will be phased in over four years beginning November 1, 2015. Additionally, with the exception of adjustments for increases in annual inflation, the two largest brewers in Ontario will have restrictions on price increases for certain packaging types of the largest Ontario brands until the second quarter of 2017. The New Framework is also intended to increase convenience and choice available for consumers by increasing the number and types of outlets where beer is sold (including introducing beer sales to a specified number of grocery stores), increasing the required level of shelf space allocated to small brewers in retail outlets, as well as allowing for incremental packaging options at the Liquor Control Board of Ontario ("LCBO") and agents of the LCBO. The New Framework will also provide qualifying licensees (restaurants and bars) the ability to purchase beer at BRI retail outlets at the same price as retail consumers. Further, BRI will commit to invest CAD 100.0 million of capital spending over the next four years, 80.0% of which will be directed toward enhancements to the purchasing experience for consumers. The New Framework will also incorporate many of the proposed changes to the BRI ownership structure that were announced in January 2015, allowing all other Ontario brewers, regardless of size, to participate in the ownership and governance of BRI. Although we are continuing to evaluate the full impact of the New Framework on the future cash flows associated with our Canada reporting unit and related brand intangible assets, we have preliminarily concluded that the adoption of the New Framework does not currently result in an indication that the fair values of the Canada reporting unit or brand intangibles are more likely than not less than their respective carrying values. Additionally, we are still evaluating what actions we may take to mitigate any adverse impacts to our Canada results due to the adoption of the New Framework. The ultimate outcome and potential impact to our Canada business remains to be fully determined upon finalization and execution of the definitive binding documents.
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 2014 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 14% and 11% in excess of carrying value, respectively, as of the October 1, 2014, testing date. Prior to recognizing the brand impairments discussed below, the excess of the fair value over the carrying value of the Europe reporting unit declined from the prior year. The decrease was driven by challenging macroeconomic conditions in Europe negatively impacting our business, as well as declines in the forecasts of certain European brands, which have been adversely impacted by the expected prolonged recovery from recent flooding and an accelerated consumer trend to value brands. These impacts were partially offset by improvements to market multiples. The Canada reporting unit had a marginal decrease from the prior year primarily due to continued competitive pressures and economic weakness in the Canadian market, partially offset by improved market multiples.
Indefinite-Lived Intangibles
In 2014, our indefinite-lived intangible impairment testing performed as of July 1, 2014, determined that the fair values of the Jelen and Ozujsko indefinite-lived brand intangibles within our Europe segment were below their respective carrying values. As a result, we recorded an aggregate impairment charge of $360.0 million within special items in the third quarter of 2014. This impairment follows an impairment of $150.9 million recorded in 2013 related to the Jelen and Ostravar brands in Europe as a result of our 2013 annual impairment testing. The 2014 impairment of the Jelen brand was driven by ongoing macroeconomic challenges exacerbated by severe flooding in the Balkans region in the second quarter of 2014. This flooding caused significant damage to the infrastructure within the Serbian and Bosnian markets, for which Jelen is our primary brand, which resulted in a decrease in the brand's projected cash flows. We have analyzed the potential impact of the flood to these markets and have incorporated a prolonged recovery in our projected cash flows based on our assessments of the recovery efforts and resulting macroeconomic effects to the region. Additionally, the aftermath of the flood has further contributed to an already challenging market and has led to an acceleration of the consumer trend toward value brands. The impairment of the Ozujsko brand was driven by the continued significant economic pressures in Croatia, Ozujsko's primary market, which resulted in a decline in the brand's projected cash flows. The macroeconomic environment has driven low realized and expected GDP growth and was worsened by the previously mentioned flooding during Croatia's peak tourism season, along with the flooding in Bosnia, discussed above, where Ozujsko is also sold. These lower projected cash flows have lagged previously made assumptions based on forecasted macroeconomic recoveries, resulting in the impairments. The remaining Europe indefinite-lived intangibles' fair values, including Staropramen and Carling brands, while facing similar macroeconomic challenges, were sufficiently in excess of their respective carrying values, with the exception of Niksicko. Specifically, the performance of Niksicko, our primary brand in Montenegro, is also dependent on the Serbian and Bosnian markets and is facing similar challenges to those discussed above. As each of Jelen and Ozujsko's fair values is equal to its carrying value at the date of impairment, these brands, along with Niksicko, are therefore at risk of future impairment, as any additional decline in their forecasted future cash flows may result in a decrease to the fair value of the brand over its respective carrying value. The results of our subsequent testing performed as of October 1, 2014, did not result in further impairment, however, these brands remain at risk of future impairment. As of June 30, 2015, these at-risk intangible assets had an aggregate carrying value of $758.9 million.
Separately, our Molson core brand intangible continues to be at risk of future impairment with a fair value estimated at approximately 9% in excess of its carrying value as of the October 1, 2014, impairment testing date. The fair value of the Molson core brands in excess of carrying value decreased slightly from the prior year, as they continue to face significant competitive pressures and challenging macroeconomic conditions in the Canada market. These challenges continue to be partially offset by anticipated cost savings initiatives. As of June 30, 2015, the Molson core brand intangible had a carrying value of $2,429.9 million. The value of the Coors Light brand distribution rights and our other indefinite-lived intangibles in Canada continue to be sufficiently in excess of their carrying values.

We utilized Level 3 fair value measurements in our impairment analysis of our indefinite-lived intangible assets, which utilizes an excess earnings approach to determine the fair values of the assets as of the testing date. The future cash flows used in the analysis are based on internal cash flow projections based on our long range plans and include significant assumptions by management as noted below.

Key Assumptions
The Europe and Canada reporting units' goodwill, the Molson core brand intangible, and certain indefinite-lived brand intangibles within Europe are at risk of future impairment in the event of significant unfavorable changes in the forecasted cash flows (including significant delays in projected macroeconomic recovery, greater-than-anticipated flood impacts to certain regions' performance, or prolonged adverse economic conditions), terminal growth rates, market multiples and/or weighted-average cost of capital utilized in the discounted cash flow analyses. For testing purposes, management's best estimates of the expected future results are the primary driver in determining the fair value. Current projections used for our Europe reporting unit and indefinite-lived intangible assets testing reflect continued challenging environments in the future followed by growth resulting from a longer term recovery of the macroeconomic environment, as well as the benefit of anticipated cost savings and specific brand-building and innovation activities. Our Canada reporting unit and Molson core brand projections also reflect a continued challenging environment that has been adversely impacted by a weak economy across all industries, as well as weakened consumer demand driven by increased competitive pressures, partially offset by anticipated cost savings and specific brand-building and innovation activities. Fair value determinations require considerable judgment and are sensitive to changes in underlying assumptions and factors. As a result, there can be no assurance that the estimates and assumptions made for purposes of the 2014 annual goodwill and indefinite-lived intangible impairment test will prove to be an accurate prediction of the future. Examples of events or circumstances that could reasonably be expected to negatively affect the underlying key assumptions and ultimately impact the estimated fair value of our Canada and Europe reporting units, Molson core brand, and the at-risk European brands (Jelen, Ozujsko and Niksicko) may include such items as: (i) a decrease in expected future cash flows, specifically, a decrease in sales volume and increase in costs due to another natural disaster or other unknown event that could significantly impact our immediate and long-range results, a decrease in sales volume driven by a prolonged weakness in consumer demand or other competitive pressures adversely affecting our long term volume trends, a continuation of the trend away from core brands towards value brands in certain of our markets, especially in markets where our core brands represent a significant portion of the market, unfavorable working capital changes and an inability to successfully achieve our cost savings targets, (ii) an economic recovery that significantly differs from our assumptions in timing and/or degree (such as a recession or continued worsening of the overall European economy), an inability of the market to successfully recover from the recent severe flooding in several of our Central European markets, (iii) volatility in the equity and debt markets or other country specific factors which could result in a higher discount rate; and (iv) sensitivity to market multiples.
While historical performance and current expectations have resulted in fair values of our reporting units in excess of carrying values, if our assumptions are not realized, it is possible that an impairment charge may need to be recorded in the future.
Definite-Lived Intangibles
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 2015.
In the third quarter of 2014, as a result of the settlement with Miller in Canada, we updated our assessment of the definite-lived intangible asset related to the Miller license agreement for impairment resulting in an $8.9 million impairment charge. The valuation of the asset at that time was primarily indicative of the settlement amount, as well as the remaining future cash flows expected to be generated under the license agreement through March 31, 2015. We received half of the mutually agreed upon settlement payment following the execution of the settlement and received the remainder upon finalization of transition at the end of the first quarter of 2015. The intangible asset was fully amortized as of the end of the first quarter of 2015 and the associated gross value and accumulated amortization balances were written off. We utilized Level 3 fair value measurements in our impairment analysis of this definite-lived intangible asset in the third quarter of 2014, which included cash flow assumptions by management related to the transition period.
Debt
Debt
Debt
Debt obligations
Our total borrowings as of June 30, 2015, and December 31, 2014, were comprised of the following:
 
As of
 
June 30, 2015
 
December 31, 2014
 
(In millions)
Senior notes:
 
 
 
CAD 900 million 5.0% notes due 2015
$
720.3

 
$
774.5

CAD 500 million 3.95% Series A notes due 2017
400.2

 
430.3

$300 million 2.0% notes due 2017(1)
300.5

 
300.0

$500 million 3.5% notes due 2022(1)
508.2

 
510.8

$1.1 billion 5.0% notes due 2042
1,100.0

 
1,100.0

Less: unamortized debt discounts
(3.8
)
 
(4.2
)
Total long-term debt (including current portion)
3,025.4

 
3,111.4

Less: current portion of long-term debt
(720.2
)
 
(774.3
)
Total long-term debt
$
2,305.2

 
$
2,337.1

 
 
 
 
Short-term borrowings:
 
 
 
Commercial paper program(2)
$
65.0

 
$
—

Cash pool overdrafts(3)
23.4

 
64.6

Japanese Yen ("JPY") 1.5 billion line of credit(4)
5.7

 
4.9

Other short-term borrowings
18.1

 
5.6

Current portion of long-term debt
720.2

 
774.3

Current portion of long-term debt and short-term borrowings
$
832.4

 
$
849.4


(1)
In the first quarter of 2015, we entered into interest rate swaps to economically convert our fixed rate $300 million 2.0% notes due 2017 ("$300 million notes") to floating rate debt consistent with the interest rate swaps on our $500 million 3.5% notes due 2022 ("$500 million notes") entered into during 2014. As a result of these hedge programs, the carrying value of the $300 million and $500 million notes include adjustments of $0.5 million and $8.2 million, respectively, for fair value movements attributable to the benchmark interest rate. The carrying value of the $500 million note included an adjustment of $10.8 million for fair value movements attributable to the benchmark interest rate as of December 31, 2014.
In the first quarter of 2015, we also entered into a cross currency swap with a total notional of Euro ("EUR") 265 million ($300 million upon execution) in order to hedge a portion of the foreign currency translational impacts of our European investment. As a result of this cross currency swap and the above mentioned interest rate swaps, we have economically converted the $300 million notes and associated interest to a floating rate EUR denomination. The effective interest rate for the $300 million notes, adjusted for these swaps, was 2.72% and 1.84%, for the three and six months ended June 30, 2015, respectively. The interest rate swaps on our $500 million notes, resulted in an effective interest rate of 1.41% and 1.37% for the three and six months ended June 30, 2015, and 3.31% and 3.40% for the three and six months ended June 30, 2014, respectively. See Note 13, "Derivative Instruments and Hedging Activities" for further details.
(2)
As of June 30, 2015, the weighted-average effective interest rate and tenor for the outstanding commercial paper borrowings was 0.49% and 32.2 days, respectively. There were no outstanding borrowings under the commercial paper program as of December 31, 2014. As of June 30, 2015, we have $685.0 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, and we have no other borrowings drawn on this revolving credit facility.
(3)
As of June 30, 2015, we had $23.4 million in bank overdrafts and $44.0 million in bank cash related to our cross-border, cross-currency cash pool for a net positive position of $20.6 million. As of December 31, 2014, we had $64.6 million in bank overdrafts and $80.0 million in bank cash related to our cross-border, cross-currency cash pool for a net positive position of $15.4 million.
(4)
In addition to our JPY line of credit, we have a EUR revolving credit facility and GBP and CAD overdraft facilities which we had no borrowings under as of June 30, 2015, or December 31, 2014.
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, 2015, and December 31, 2014, the fair value of our outstanding long-term debt (including current portion) was $3,032.4 million and $3,240.6 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 and are also classified as Level 2.
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, 2015, and December 31, 2014, 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)
Accumulated Other Comprehensive Income (Loss)
Accumulated Other Comprehensive Income (Loss) ("AOCI")
 
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, 2014
$
129.8

 
$
15.0

 
$
(658.5
)
 
$
(384.7
)
 
$
(898.4
)
Foreign currency translation adjustments
(393.5
)
 
—

 
—

 
—

 
(393.5
)
Unrealized gain (loss) on derivative instruments
—

 
10.7

 
—

 
—

 
10.7

Reclassification of derivative (gain) loss to income
—

 
(4.2
)
 
—

 
—

 
(4.2
)
Pension and other postretirement benefit adjustments
—

 
—

 
(2.2
)
 
—

 
(2.2
)
Amortization of net prior service (benefit) cost and net actuarial (gain) loss to income
—

 
—

 
23.3

 
—

 
23.3

Ownership share of unconsolidated subsidiaries' other comprehensive income (loss)
—

 
—

 
—

 
(0.5
)
 
(0.5
)
Tax benefit (expense)
(31.1
)
 
(0.9
)
 
(4.6
)
 
0.2

 
(36.4
)
As of June 30, 2015
$
(294.8
)
 
$
20.6

 
$
(642.0
)
 
$
(385.0
)
 
$
(1,301.2
)


Reclassifications from AOCI to income:
 
 
Three Months Ended
 
Six Months Ended
 
 
 
 
June 30, 2015
 
June 30, 2014
 
June 30, 2015
 
June 30, 2014
 
 
 
 
Reclassifications from AOCI
 
Location of gain (loss)
recognized in income
 
 
(In millions)
 
 
Gain/(loss) on cash flow hedges:
 
 
 
 
 
 
 
 
 
 
Forward starting interest rate swaps
 
$
(0.3
)
 
$
(0.4
)
 
$
(0.6
)
 
$
(0.8
)
 
Interest expense, net
Foreign currency forwards
 
(2.9
)
 
0.7

 
(5.3
)
 
2.3

 
Other income (expense), net
Foreign currency forwards
 
5.4

 
3.0

 
10.1

 
6.3

 
Cost of goods sold
Commodity swaps
 
—

 
0.2

 
—

 
0.4

 
Cost of goods sold
Total income (loss) reclassified, before tax
 
2.2

 
3.5

 
4.2

 
8.2

 
 
Income tax benefit (expense)
 
(0.6
)
 
(1.1
)
 
(1.2
)
 
(2.6
)
 
 
Net income (loss) reclassified, net of tax
 
$
1.6

 
$
2.4

 
$
3.0

 
$
5.6

 
 
 
 
 
 
 
 
 
 
 
 
 
Amortization of defined benefit pension and other postretirement benefit plan items:
 
 
 
 
 
 
 
 
 
 
Prior service benefit (cost)
 
$
(0.1
)
 
$
0.5

 
$
(0.2
)
 
$
1.1

 
(1)
Net actuarial gain (loss)
 
(11.9
)
 
(9.0
)
 
(23.1
)
 
(17.9
)
 
(1)
Total income (loss) reclassified, before tax
 
(12.0
)
 
(8.5
)
 
(23.3
)
 
(16.8
)
 
 
Income tax benefit (expense)
 
2.7

 
0.7

 
5.0

 
1.4

 
 
Net income (loss) reclassified, net of tax
 
$
(9.3
)
 
$
(7.8
)
 
$
(18.3
)
 
$
(15.4
)
 
 
 
 
 
 
 
 
 
 
 
 
 
Total income (loss) reclassified, net of tax
 
$
(7.7
)
 
$
(5.4
)
 
$
(15.3
)
 
$
(9.8
)
 
 
(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 2015. 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 positions have not changed considerably since year-end, except as noted below.
Interest Rate Swaps
In the first quarter of 2015, we entered into interest rate swaps with an aggregate notional of $300 million to economically convert our fixed rate $300 million notes to floating rate debt. We will receive fixed interest payments semi-annually at a rate of 2% per annum on our $300 million hedges 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.
We entered into these interest rate swap agreements to minimize exposure to changes in the fair value of our $300 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, consistent with our $500 million interest rate hedges that we entered into in 2014. 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 the three and six months ended June 30, 2015, the changes in fair value of the $500 million interest rate swap resulted in unrealized losses of $11.0 million and $2.6 million, respectively. The changes in fair value of the $300 million interest rate swap resulted in an unrealized loss of $0.1 million and gain of $0.5 million, respectively, for the same period. These changes were recorded in interest expense in our unaudited condensed consolidated statement of operations and were fully offset by changes in fair value of the $500 million notes and the $300 million notes attributable to the benchmark interest rate. Accordingly, as of June 30, 2015, and December 31, 2014, such cumulative adjustments had increased the carrying value of our $500 million notes by $8.2 million and $10.8 million, respectively, and as of June 30, 2015, such cumulative adjustments had increased the carrying value of our $300 million notes by $0.5 million. See Note 11, "Debt" for additional details.
Cross Currency Swap
In the first quarter of 2015, we entered into a cross currency swap agreement having a total notional of EUR 265 million ($300 million upon execution) in order to hedge a portion of the foreign currency translational impacts of our European investment. We will receive floating interest payments quarterly based on a credit spread plus the three month LIBOR (USD coupon) and pay a floating rate to our counterparty based on a credit spread plus EURIBOR (EUR coupon). As a result of this cross currency swap and the above mentioned interest rate swaps, we have economically converted the $300 million notes and associated interest to a floating rate EUR denomination. We have designated this cross currency swap as a net investment hedge and accordingly, record changes in fair value due to fluctuations in the spot rate to AOCI. The changes in fair value of the derivative attributable to changes other than those due to fluctuations in the spot rate are excluded from the assessment of hedge effectiveness and recorded to interest expense.
Forward Starting Interest Rate Swaps
As of June 30, 2015, we had entered into forward starting interest rate swap agreements having a total notional of CAD 560 million and a weighted-average fixed interest rate of 2.61%. We intend to enter into additional forward starting interest rate swaps up to the date of the forecasted issuance. These swaps are designated as cash flow hedges.
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, 2015, and December 31, 2014.
 
 
 
Fair value measurements as of June 30, 2015
 
Total at June 30, 2015
 
Quoted prices in
active markets
(Level 1)
 
Significant other
observable inputs
(Level 2)
 
Significant
unobservable
inputs (Level 3)
 
(In millions)
Cross currency swap
$
3.7

 
$
—

 
$
3.7

 
$
—

Interest rate swaps
(7.8
)
 
—

 
(7.8
)
 
—

Foreign currency forwards
36.0

 
—

 
36.0

 
—

Commodity swaps
(13.1
)
 
—

 
(13.1
)
 
—

Total
$
18.8

 
$
—

 
$
18.8

 
$
—

 
 
 
Fair value measurements as of December 31, 2014
 
Total at December 31, 2014
 
Quoted prices in
active markets
(Level 1)
 
Significant other
observable inputs
(Level 2)
 
Significant
unobservable
inputs (Level 3)
 
(In millions)
Interest rate swaps
$
(2.2
)
 
$
—

 
$
(2.2
)
 
$
—

Foreign currency forwards
31.6

 
—

 
31.6

 
—

Commodity swaps
(8.9
)
 
—

 
(8.9
)
 
—

Total
$
20.5

 
$
—

 
$
20.5

 
$
—



As of June 30, 2015, we had no significant transfers between Level 1 and Level 2. New derivative contracts transacted during the three months ended June 30, 2015, 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, 2015, and December 31, 2014, and the unaudited condensed consolidated statements of operations for the three and six months ended June 30, 2015, and June 30, 2014.
Fair Value of Derivative Instruments in the Condensed Consolidated Balance Sheet (in millions)
 
June 30, 2015
 
 
 
Asset derivatives
 
Liability derivatives
 
Notional amount
 
Balance sheet location
 
Fair value
 
Balance sheet location
 
Fair value
Derivatives designated as hedging instruments:
 
 
 
 
 
 
 
 
Cross currency swap
$
295.5

 
Other non-current assets
 
$
3.7

 
Other liabilities
 
$
—

Interest rate swaps
$
1,248.2

 
Other current assets
 
1.8

 
Accounts payable and other current liabilities
 
(18.3
)
 
 
 
Other non-current assets
 
8.7

 
Other liabilities
 
—

Foreign currency forwards
$
340.0

 
Other current assets
 
23.9

 
Accounts payable and other current liabilities
 
(0.1
)
 
 
 
Other non-current assets
 
13.0

 
Other liabilities
 
(0.8
)
Total derivatives designated as hedging instruments
 
 
 
$
51.1

 
 
 
$
(19.2
)
Derivatives not designated as hedging instruments:
 
 
 
 
 
 
Commodity swaps
$
123.2

 
Other current assets
 
$
0.3

 
Accounts payable and other current liabilities
 
$
(7.5
)
 
 
 
Other non-current assets
 
0.5

 
Other liabilities
 
(6.4
)
Foreign currency forwards

 
Other current assets
 

 
Accounts payable and other current liabilities
 
—

Total derivatives not designated as hedging instruments
 
$
0.8

 
 
 
$
(13.9
)
 
December 31, 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
$
844.2

 
Other current assets
 
$
—

 
Accounts payable and other current liabilities
 
$
(13.0
)
 
 
 
Other non-current assets
 
10.8

 
Other liabilities
 
—

Foreign currency forwards
$
343.4

 
Other current assets
 
19.5

 
Accounts payable and other current liabilities
 
—

 
 
 
Other non-current assets
 
12.1

 
Other liabilities
 
—

Total derivatives designated as hedging instruments
 
 
 
$
42.4

 
 
 
$
(13.0
)
Derivatives not designated as hedging instruments:
 
 
 
 
 
 
Commodity swaps
$
111.1

 
Other current assets
 
$
0.2

 
Accounts payable and other current liabilities
 
$
(4.9
)
 
 
 
Other non-current assets
 
0.4

 
Other liabilities
 
(4.6
)
Total derivatives not designated as hedging instruments
 
$
0.6

 
 
 
$
(9.5
)

The Pretax Effect of Derivative Instruments on the Condensed Consolidated Statement of Operations (in millions)
For the Three Months Ended June 30, 2015
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
 
$
10.7

 
Interest expense, net
 
$
(0.3
)
 
Interest expense, net
 
$
—

Foreign currency forwards
 
(10.3
)
 
Other income (expense), net
 
(2.9
)
 
Other income (expense), net
 
—

 
 
 

 
Cost of goods sold
 
5.4

 
Cost of goods sold
 
—

Total
 
$
0.4

 
 
 
$
2.2

 
 
 
$
—

For the Three Months Ended June 30, 2015
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 swap
 
$
(11.0
)
 
Interest expense, net
 
$
—

 
Interest expense, net
 
$
(1.2
)
Total
 
$
(11.0
)
 
 
 
$
—

 
 
 
$
(1.2
)
For the Three Months Ended June 30, 2015
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
 
$
(11.1
)
 
Interest expense, net
Total
 
$
(11.1
)
 
 
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
 
Location of gain (loss) recognized in income
Interest rate swap
 
$
1.2

 
Interest expense, net
Total
 
$
1.2

 
 

For the Six Months Ended June 30, 2015
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
 
$
(5.0
)
 
Interest expense, net
 
$
(0.6
)
 
Interest expense, net
 
$
—

Foreign currency forwards
 
11.2

 
Other income (expense), net
 
(5.3
)
 
Other income (expense), net
 
—

 
 
 

 
Cost of goods sold
 
10.1

 
Cost of goods sold
 
—

Total
 
$
6.2

 
 
 
$
4.2

 
 
 
$
—

For the Six Months Ended June 30, 2015
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 swap
 
$
4.5

 
Interest expense, net
 
$
—

 
Interest expense, net
 
$
(0.8
)
Total
 
$
4.5

 
 
 
$
—

 
 
 
$
(0.8
)
For the Six Months Ended June 30, 2015
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
 
$
(2.1
)
 
Interest expense, net
Total
 
$
(2.1
)
 
 
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 swap
 
$
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
 
Location of gain (loss) recognized in income
Interest rate swap
 
$
1.2

 
Interest expense, net
Total
 
$
1.2

 
 

We expect net gains of approximately $23 million (pretax) recorded in AOCI at June 30, 2015, 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, 2015, is three years.
Other Derivatives (in millions)
For the Three Months Ended June 30, 2015
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
 
$
(5.4
)
Foreign currency forwards
 
Other income (expense), net
 
(1.1
)
Total
 
 
 
$
(6.5
)
For the Three Months Ended June 30, 2014
Derivatives not in hedging relationships
 
Location of gain (loss) recognized in
income on derivative
 
Amount of gain (loss) recognized in
income on derivative
Commodity Swaps
 
Cost of goods sold
 
$
0.7

Total
 
 
 
$
0.7

For the Six Months Ended June 30, 2015
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
 
$
(6.0
)
Foreign currency forwards
 
Other income (expense), net
 
0.1

Total
 
 
 
$
(5.9
)
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
)
Pension and Other Postretirement Benefits
Pension and Other Postretirement Benefits
14. Pension and Other Postretirement Benefits ("OPEB")
 
For the Three Months Ended
 
June 30, 2015
 
June 30, 2014
 
Pension
 
OPEB
 
Consolidated
 
Pension
 
OPEB
 
Consolidated
 
(In millions)
Net periodic pension and OPEB cost:
 
 
 
 
 
 
 
 
 
 
 
Service cost - benefits earned during the year
$
2.6

 
$
0.4

 
$
3.0

 
$
3.3

 
$
0.8

 
$
4.1

Interest cost on projected benefit obligation
34.9

 
1.5

 
36.4

 
42.6

 
1.9

 
44.5

Expected return on plan assets
(44.6
)
 
—

 
(44.6
)
 
(49.8
)
 
—

 
(49.8
)
Amortization of prior service cost (benefit)
0.2

 
(0.1
)
 
0.1

 
0.2

 
(0.7
)
 
(0.5
)
Amortization of net actuarial loss (gain)
11.9

 
—

 
11.9

 
9.3

 
(0.3
)
 
9.0

Less: expected participant contributions
(0.2
)
 
—

 
(0.2
)
 
(0.3
)
 
—

 
(0.3
)
Net periodic pension and OPEB cost
$
4.8

 
$
1.8

 
$
6.6

 
$
5.3

 
$
1.7

 
$
7.0


 
For the Six Months Ended
 
June 30, 2015
 
June 30, 2014
 
Pension
 
OPEB
 
Consolidated
 
Pension
 
OPEB
 
Consolidated
 
(In millions)
Net periodic pension and OPEB cost:
 

 
 

 
 
 
 
 
 
 
 
Service cost - benefits earned during the year
$
5.2

 
$
0.9

 
$
6.1

 
$
6.6

 
$
1.5

 
$
8.1

Interest cost on projected benefit obligation
69.3

 
3.0

 
72.3

 
84.7

 
3.6

 
88.3

Expected return on plan assets
(88.7
)
 
—

 
(88.7
)
 
(98.9
)
 
—

 
(98.9
)
Amortization of prior service cost (benefit)
0.4

 
(0.2
)
 
0.2

 
0.4

 
(1.5
)
 
(1.1
)
Amortization of net actuarial loss (gain)
23.1

 
—

 
23.1

 
18.4

 
(0.5
)
 
17.9

Curtailment (gain) loss
(1.0
)
 
—

 
(1.0
)
 
—

 
—

 
—

Less: expected participant contributions
(0.4
)
 
—

 
(0.4
)
 
(0.6
)
 
—

 
(0.6
)
Net periodic pension and OPEB cost
$
7.9

 
$
3.7

 
$
11.6

 
$
10.6

 
$
3.1

 
$
13.7


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 certain exposures related to 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, 2014; therefore, all changes in the current and non-current liabilities of discontinued operations during the first half of 2015 are due to fluctuations in foreign exchange rates from December 31, 2014, to June 30, 2015. During the three months ended June 30, 2015, and June 30, 2014, we recognized losses of $0.3 million and gains of $0.2 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, 2015, and June 30, 2014, we recognized gains of $1.6 million and losses of $1.7 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 $112.8 million, based on foreign exchange rates as of June 30, 2015.
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. As of June 30, 2015, accounts payable and other current liabilities in the accompanying unaudited condensed consolidated balance sheets includes $10.8 million related to the guarantee of the indebtedness of our equity method investments. See Note 4, "Investments" for more details. Additionally, 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. Other liabilities in the accompanying unaudited condensed consolidated balance sheets include $4.9 million as of June 30, 2015, and $5.3 million as of December 31, 2014, related to the Ground Lease Guarantee, both of which are classified as non-current.
Litigation, Other Disputes and Environmental
Related to litigation, other disputes and environmental issues, we have accrued an aggregate of $15.1 million as of June 30, 2015, and $16.6 million as of December 31, 2014. We believe that any reasonably possible losses in excess of the amounts accrued are immaterial to our unaudited condensed consolidated financial statements, except as noted below.
In addition to the specific cases 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, other than as discussed below, none of these disputes or legal actions are 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.
During the fourth quarter of 2014 and the first quarter of 2015, we received assessments from a local country regulatory authority related to our Europe operations during the 29 month period prior to receipt of the most recent assessment. The aggregate amount of the assessments received is approximately $81 million, based on foreign exchange rates at June 30, 2015. While we intend to vigorously challenge the validity of these assessments and defend our position, if the assessments, as issued, are ultimately upheld, they could materially affect our results of operations. Based on the assessments received and related impacts, we estimate a range of loss of zero to approximately $98 million, based on foreign exchange rates at June 30, 2015. We continue to follow the required regulatory procedures in order to proceed with our appeal of the assessments.
In 2013 we became aware of potential liabilities in several European countries primarily related to local country regulatory matters associated with StarBev Holdings S.à r.l. ("StarBev") 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 of StarBev. 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.
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
On December 12, 2014, a notice of action captioned David Hughes and 631992 Ontario Inc. v. Liquor Control Board of Ontario, Brewers Retail Inc., Labatt Breweries of Canada LP, Molson Coors Canada and Sleeman Breweries Ltd. No. CV-14-518059-00CP was filed in Ontario, Canada in the Ontario Superior Court of Justice. BRI and its owners, including Molson Coors Canada, as well as the LCBO are named as defendants in the action. The plaintiffs allege that The Beer Store (retail outlets owned and operated by BRI) and LCBO improperly entered into an agreement to fix prices and market allocation within the Ontario beer market to the detriment of licensees and consumers. The plaintiffs seek to have the claim certified as a class action on behalf of all Ontario beer consumers and licensees and, among other things, damages in the amount of CAD 1.4 billion. Although we are at an early stage of the proceedings, we note that The Beer Store operates according to the rules established by the Government of Ontario for regulation, sale and distribution of beer in the province. Additionally, prices at The Beer Store are independently set by each brewer and are approved by the LCBO on a weekly basis. As such, we currently believe the claim has been made without merit, and we intend to vigorously assert and defend our rights in this lawsuit.
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 pretax 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 2.73% risk-free rate of return.
Based on these assumptions, the present value and gross amount of the costs at June 30, 2015, are approximately $3.0 million and $7.3 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 were 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 subsequently sold, 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 of 2015 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 Canada and U.S. segments, as well as our U.K. operations of our Europe 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. See Note 11, "Debt" for additional details.
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, 2015.
Presentation    
The following information sets forth the condensed consolidating statements of operations for the three and six months ended June 30, 2015, and June 30, 2014, condensed consolidating balance sheets as of June 30, 2015, and December 31, 2014, and condensed consolidating statements of cash flows for the six months ended June 30, 2015, and June 30, 2014. 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 OPERATIONS
FOR THE THREE MONTHS ENDED JUNE 30, 2015
(IN MILLIONS)
(UNAUDITED)

 
Parent
Guarantor and
2012 Issuer
 
Subsidiary
Guarantors
 
Subsidiary
Non
Guarantors
 
Eliminations
 
Consolidated
Sales
$
6.1

 
$
1,082.6

 
$
351.4

 
$
(7.1
)
 
$
1,433.0

Excise taxes
—

 
(348.5
)
 
(78.8
)
 
—

 
(427.3
)
Net sales
6.1

 
734.1

 
272.6

 
(7.1
)
 
1,005.7

Cost of goods sold
—

 
(437.8
)
 
(137.8
)
 
(4.3
)
 
(579.9
)
Gross profit
6.1

 
296.3

 
134.8

 
(11.4
)
 
425.8

Marketing, general and administrative expenses
(30.3
)
 
(176.5
)
 
(87.9
)
 
11.4

 
(283.3
)
Special items, net
—

 
1.7

 
(35.4
)
 
—

 
(33.7
)
Equity income (loss) in subsidiaries
184.0

 
(67.7
)
 
160.5

 
(276.8
)
 
—

Equity income in MillerCoors
—

 
205.5

 
—

 
—

 
205.5

Operating income (loss)
159.8

 
259.3

 
172.0

 
(276.8
)
 
314.3

Interest income (expense), net
(15.9
)
 
61.2

 
(75.9
)
 
—

 
(30.6
)
Other income (expense), net
0.3

 
3.6

 
2.4

 
—

 
6.3

Income (loss) from continuing operations before income taxes
144.2

 
324.1

 
98.5

 
(276.8
)
 
290.0

Income tax benefit (expense)
84.8

 
(141.2
)
 
(2.0
)
 
—

 
(58.4
)
Net income (loss) from continuing operations
229.0

 
182.9

 
96.5

 
(276.8
)
 
231.6

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

 
—

 
(0.3
)
 
—

 
(0.3
)
Net income (loss) including noncontrolling interests
229.0

 
182.9

 
96.2

 
(276.8
)
 
231.3

Net (income) loss attributable to noncontrolling interests
—

 
—

 
(2.3
)
 
—

 
(2.3
)
Net income (loss) attributable to MCBC
$
229.0

 
$
182.9

 
$
93.9

 
$
(276.8
)
 
$
229.0

Comprehensive income (loss) attributable to MCBC
$
463.6

 
$
417.9

 
$
242.2

 
$
(660.1
)
 
$
463.6


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 BALANCE SHEET
AS OF JUNE 30, 2015
(IN MILLIONS)
(UNAUDITED)
 
Parent
Guarantor and
2012 Issuer
 
Subsidiary
Guarantors
 
Subsidiary
Non
Guarantors
 
Eliminations
 
Consolidated
Assets
 
 
 
 
 
 
 
 
 
Current assets:
 
 
 
 
 
 
 
 
 
Cash and cash equivalents
$
85.1

 
$
199.1

 
$
129.6

 
$
—

 
$
413.8

Accounts receivable, net
—

 
384.9

 
210.2

 
—

 
595.1

Other receivables, net
25.1

 
44.2

 
21.2

 
—

 
90.5

Total inventories
—

 
195.1

 
49.2

 
—

 
244.3

Other current assets, net
6.2

 
59.1

 
40.0

 
—

 
105.3

Deferred tax assets
2.2

 
0.9

 
30.8

 
(6.7
)
 
27.2

Intercompany accounts receivable
—

 
3,688.7

 
316.5

 
(4,005.2
)
 
—

Total current assets
118.6

 
4,572.0

 
797.5

 
(4,011.9
)
 
1,476.2

Properties, net
28.8

 
1,079.0

 
601.6

 
—

 
1,709.4

Goodwill
—

 
1,073.6

 
1,041.7

 
—

 
2,115.3

Other intangibles, net
—

 
3,624.8

 
1,748.5

 
—

 
5,373.3

Investment in MillerCoors
—

 
2,452.9

 
—

 
—

 
2,452.9

Net investment in and advances to subsidiaries
12,673.4

 
4,047.9

 
5,587.1

 
(22,308.4
)
 
—

Deferred tax assets
18.0

 
20.7

 
0.2

 
12.3

 
51.2

Other assets, net
32.2

 
144.9

 
41.8

 
—

 
218.9

Total assets
$
12,871.0

 
$
17,015.8

 
$
9,818.4

 
$
(26,308.0
)
 
$
13,397.2

Liabilities and equity
 
 
 
 
 
 
 
 
 
Current liabilities:
 
 
 
 
 
 
 
 
 
Accounts payable and other current liabilities
$
44.1

 
$
882.6

 
$
406.2

 
$
—

 
$
1,332.9

Deferred tax liabilities
—

 
185.6

 
0.1

 
(6.7
)
 
179.0

Current portion of long-term debt and short-term borrowings
65.0

 
720.2

 
47.2

 
—

 
832.4

Discontinued operations
—

 
—

 
5.2

 
—

 
5.2

Intercompany accounts payable
3,229.0

 
353.3

 
422.9

 
(4,005.2
)
 
—

Total current liabilities
3,338.1

 
2,141.7

 
881.6

 
(4,011.9
)
 
2,349.5

Long-term debt
1,905.3

 
399.9

 
—

 
—

 
2,305.2

Pension and postretirement benefits
3.1

 
259.9

 
6.0

 
—

 
269.0

Deferred tax liabilities
—

 
—

 
726.7

 
12.3

 
739.0

Other liabilities
18.5

 
34.0

 
37.4

 
—

 
89.9

Discontinued operations
—

 
—

 
13.2

 
—

 
13.2

Intercompany notes payable
—

 
1,379.4

 
5,332.7

 
(6,712.1
)
 
—

Total liabilities
5,265.0

 
4,214.9

 
6,997.6

 
(10,711.7
)
 
5,765.8

MCBC stockholders' equity
7,607.1

 
18,132.5

 
4,175.9

 
(22,308.4
)
 
7,607.1

Intercompany notes receivable
(1.1
)
 
(5,331.6
)
 
(1,379.4
)
 
6,712.1

 
—

Total stockholders' equity
7,606.0

 
12,800.9

 
2,796.5

 
(15,596.3
)
 
7,607.1

Noncontrolling interests
—

 
—

 
24.3

 
—

 
24.3

Total equity
7,606.0

 
12,800.9

 
2,820.8

 
(15,596.3
)
 
7,631.4

Total liabilities and equity
$
12,871.0

 
$
17,015.8

 
$
9,818.4

 
$
(26,308.0
)
 
$
13,397.2


MOLSON COORS BREWING COMPANY AND SUBSIDIARIES
CONDENSED CONSOLIDATING BALANCE SHEET
AS OF DECEMBER 31, 2014
(IN MILLIONS)
(UNAUDITED)
 
Parent
Guarantor and
2012 Issuer
 
Subsidiary
Guarantors
 
Subsidiary
Non
Guarantors
 
Eliminations
 
Consolidated
Assets
 
 
 
 
 
 
 
 
 
Current assets:
 
 
 
 
 
 
 
 
 
Cash and cash equivalents
$
40.9

 
$
470.7

 
$
113.0

 
$
—

 
$
624.6

Accounts receivable, net
2.3

 
391.0

 
134.4

 
—

 
527.7

Other receivables, net
17.4

 
50.3

 
26.3

 
—

 
94.0

Total inventories
—

 
170.1

 
32.1

 
—

 
202.2

Other current assets, net
7.0

 
55.4

 
40.8

 
—

 
103.2

Deferred tax assets
2.2

 
—

 
31.6

 
(6.6
)
 
27.2

Intercompany accounts receivable
—

 
3,313.0

 
251.8

 
(3,564.8
)
 
—

Total current assets
69.8

 
4,450.5

 
630.0

 
(3,571.4
)
 
1,578.9

Properties, net
26.9

 
1,161.4

 
609.7

 
—

 
1,798.0

Goodwill
—

 
1,085.2

 
1,106.4

 
—

 
2,191.6

Other intangibles, net
—

 
3,883.9

 
1,871.9

 
—

 
5,755.8

Investment in MillerCoors
—

 
2,388.6

 
—

 
—

 
2,388.6

Net investment in and advances to subsidiaries
12,582.8

 
3,618.6

 
5,998.2

 
(22,199.6
)
 
—

Deferred tax assets
21.3

 
23.4

 
1.2

 
12.3

 
58.2

Other assets, net
31.1

 
144.7

 
49.4

 
—

 
225.2

Total assets
$
12,731.9

 
$
16,756.3

 
$
10,266.8

 
$
(25,758.7
)
 
$
13,996.3

Liabilities and equity
 
 
 
 
 
 
 
 
 
Current liabilities:
 
 
 
 
 
 
 
 
 
Accounts payable and other current liabilities
$
61.9

 
$
903.3

 
$
339.8

 
$
—

 
$
1,305.0

Deferred tax liabilities
—

 
171.4

 
—

 
(6.6
)
 
164.8

Current portion of long-term debt and short-term borrowings
—

 
774.3

 
75.1

 
—

 
849.4

Discontinued operations
—

 
—

 
6.1

 
—

 
6.1

Intercompany accounts payable
2,881.1

 
312.8

 
370.9

 
(3,564.8
)
 
—

Total current liabilities
2,943.0

 
2,161.8

 
791.9

 
(3,571.4
)
 
2,325.3

Long-term debt
1,907.3

 
429.8

 
—

 
—

 
2,337.1

Pension and postretirement benefits
2.9

 
534.0

 
6.0

 
—

 
542.9

Deferred tax liabilities
—

 
—

 
772.0

 
12.3

 
784.3

Other liabilities
16.6

 
45.8

 
42.7

 
—

 
105.1

Discontinued operations
—

 
—

 
15.5

 
—

 
15.5

Intercompany notes payable
—

 
1,211.9

 
5,669.5

 
(6,881.4
)
 
—

Total liabilities
4,869.8

 
4,383.3

 
7,297.6

 
(10,440.5
)
 
6,110.2

MCBC stockholders' equity
7,863.3

 
18,041.3

 
4,158.3

 
(22,199.6
)
 
7,863.3

Intercompany notes receivable
(1.2
)
 
(5,668.3
)
 
(1,211.9
)
 
6,881.4

 
—

Total stockholders' equity
7,862.1

 
12,373.0

 
2,946.4

 
(15,318.2
)
 
7,863.3

Noncontrolling interests
—

 
—

 
22.8

 
—

 
22.8

Total equity
7,862.1

 
12,373.0

 
2,969.2

 
(15,318.2
)
 
7,886.1

Total liabilities and equity
$
12,731.9

 
$
16,756.3

 
$
10,266.8

 
$
(25,758.7
)
 
$
13,996.3

MOLSON COORS BREWING COMPANY AND SUBSIDIARIES
CONDENSED CONSOLIDATING STATEMENT OF CASH FLOWS
FOR THE SIX MONTHS ENDED JUNE 30, 2015
(IN MILLIONS)
(UNAUDITED)

 
Parent
Guarantor and
2012 Issuer
 
Subsidiary
Guarantors
 
Subsidiary
Non
Guarantors
 
Eliminations
 
Consolidated
Net cash provided by (used in) operating activities
$
192.2

 
$
83.5

 
$
168.7

 
$
(246.3
)
 
$
198.1

CASH FLOWS FROM INVESTING ACTIVITIES:
 
 
 
 
 
 
 
 
 
Additions to properties
(6.4
)
 
(84.2
)
 
(49.2
)
 
—

 
(139.8
)
Proceeds from sales of properties and other assets
—

 
2.3

 
5.2

 
—

 
7.5

Acquisition of businesses, net of cash acquired
—

 
(6.3
)
 
(44.8
)
 
—

 
(51.1
)
Investment in MillerCoors
—

 
(758.1
)
 
—

 
—

 
(758.1
)
Return of capital from MillerCoors
—

 
692.9

 
—

 
—

 
692.9

Loan repayments
—

 
4.5

 
14.5

 
—

 
19.0

Loan advances
—

 
(6.2
)
 
(19.9
)
 
—

 
(26.1
)
Other
—

 
(2.4
)
 
—

 
—

 
(2.4
)
Net intercompany investing activity
(56.2
)
 
(173.8
)
 
(184.5
)
 
414.5

 
—

Net cash provided by (used in) investing activities
(62.6
)
 
(331.3
)
 
(278.7
)
 
414.5

 
(258.1
)
CASH FLOWS FROM FINANCING ACTIVITIES:
 
 
 
 
 
 
 
 
 
Exercise of stock options under equity compensation plans
28.6

 
—

 
—

 
—

 
28.6

Excess tax benefits from share-based compensation
7.6

 
—

 
—

 
—

 
7.6

Dividends paid
(136.0
)
 
(246.3
)
 
(16.3
)
 
246.3

 
(152.3
)
Payments for purchases of treasury stock
(50.1
)
 
—

 
—

 
—

 
(50.1
)
Payments on long-term debt and capital lease obligations
(0.4
)
 
(0.3
)
 
—

 
—

 
(0.7
)
Proceeds from short-term borrowings
—

 
—

 
27.9

 
—

 
27.9

Payments on short-term borrowings
—

 
—

 
(14.6
)
 
—

 
(14.6
)
Net proceeds from (payments on) revolving credit facilities and commercial paper
64.9

 
—

 
2.3

 
—

 
67.2

Change in overdraft balances and other
—

 
—

 
(38.3
)
 
—

 
(38.3
)
Net intercompany financing activity
—

 
240.7

 
173.8

 
(414.5
)
 
—

Net cash provided by (used in) financing activities
(85.4
)
 
(5.9
)
 
134.8

 
(168.2
)
 
(124.7
)
CASH AND CASH EQUIVALENTS:
 
 
 
 
 
 
 
 
 
Net increase (decrease) in cash and cash equivalents
44.2

 
(253.7
)
 
24.8

 
—

 
(184.7
)
Effect of foreign exchange rate changes on cash and cash equivalents
—

 
(17.9
)
 
(8.2
)
 
—

 
(26.1
)
Balance at beginning of year
40.9

 
470.7

 
113.0

 
—

 
624.6

Balance at end of period
$
85.1

 
$
199.1

 
$
129.6

 
$
—

 
$
413.8


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
)
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
(1.8
)
 
0.6

 
128.0

 
—

 
126.8

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 Basis of Presentation and Summary of Significant Accounting Policies (Policies)
Segments
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. Unless otherwise indicated, information in this report is presented in U.S. dollars ("USD" or "$") and comparisons are to comparable prior periods.
Segment Reporting (Tables)
Net sales by segment 
The following table presents net sales by segment:
 
Three Months Ended
 
Six Months Ended
 
June 30, 2015
 
June 30, 2014
 
June 30, 2015
 
June 30, 2014
 
(In millions)
Canada
$
444.9

 
$
516.5

 
$
758.4

 
$
863.6

Europe
524.8

 
629.4

 
882.7

 
1,067.0

MCI
37.2

 
43.7

 
66.3

 
75.9

Corporate
0.1

 
0.4

 
0.5

 
0.7

Eliminations(1)
(1.3
)
 
(1.5
)
 
(2.2
)
 
(2.7
)
         Consolidated
$
1,005.7

 
$
1,188.5

 
$
1,705.7

 
$
2,004.5


(1)
Represents inter-segment sales from the Europe segment to the MCI segment.
Income (loss) from continuing operations before income taxes by segment 
The following table presents income (loss) from continuing operations before income taxes by segment:
 
Three Months Ended
 
Six Months Ended
 
June 30, 2015
 
June 30, 2014
 
June 30, 2015
 
June 30, 2014
 
(In millions)
Canada(1)
$
106.1

 
$
120.8

 
$
137.0

 
$
209.1

U.S. 
205.5

 
190.1

 
334.8

 
312.9

Europe(2)
49.0

 
84.5

 
44.9

 
111.5

MCI(3)
(12.2
)
 
(3.7
)
 
(17.6
)
 
(6.7
)
Corporate
(58.4
)
 
(62.4
)
 
(115.6
)
 
(127.9
)
         Consolidated
$
290.0

 
$
329.3

 
$
383.5

 
$
498.9


(1)
Results for the six months ended June 30, 2014, include $63.2 million of income related to the termination of our Modelo Molson Imports, L.P. ("MMI") joint venture in Canada. See Note 4, "Investments" for further discussion. Results for the three and six months ended June 30, 2015, included $8.2 million of charges related to the closure of a bottling line within our Toronto brewery as part of a strategic review of our Canadian supply chain network. See Note 6, "Special Items" for further discussion.
(2)
Results for the three and six months ended June 30, 2015, include charges associated with the closure of one of our U.K. breweries of $9.3 million and $21.1 million for the three and six months ended June 30, 2015, respectively. See Note 6, "Special Items" for further discussion.
Additionally, included in Europe results for the three and six months ended June 30, 2015, are termination charges of $29.4 million partially offset by termination fee income of $19.4 million. See Note 6, "Special Items" for further discussion. Further, results for the six months ended June 30, 2014, include a gain of $13.0 million related to the release of an indirect-tax reserve, inclusive of accrued interest. See Note 15, "Commitments and Contingencies" for further discussion.
(3)
Results for both the three and six months ended June 30, 2015, include $6.4 million of charges related to our decision to substantially restructure our business in China. See Note 6, "Special Items" for further discussion.
Total assets by segment 
The following table presents total assets by segment:
 
As of
 
June 30, 2015
 
December 31, 2014
 
(In millions)
Canada
$
5,121.2


$
5,537.2

U.S. 
2,452.9


2,388.6

Europe
5,412.4


5,773.3

MCI
135.5


75.2

Corporate
275.2


222.0

         Consolidated
$
13,397.2


$
13,996.3

Investments (Tables)
Summarized financial information of MillerCoors 
Investment in MillerCoors Summarized Financial Information
Condensed Balance Sheets
 
As of
 
June 30, 2015
 
December 31, 2014
 
(In millions)
Current assets
$
923.4

 
$
795.3

Non-current assets
9,005.9

 
9,047.4

Total assets
$
9,929.3

 
$
9,842.7

Current liabilities
$
1,086.1

 
$
1,061.3

Non-current liabilities
1,496.3

 
1,578.8

Total liabilities
2,582.4

 
2,640.1

Noncontrolling interests
20.4

 
23.5

Owners' equity
7,326.5

 
7,179.1

Total liabilities and equity
$
9,929.3

 
$
9,842.7

The following represents our proportionate share in MillerCoors' equity and reconciliation to our investment in MillerCoors:
 
As of
 
June 30, 2015
 
December 31, 2014
 
(In millions, except percentages)
MillerCoors owners' equity
$
7,326.5

 
$
7,179.1

MCBC economic interest
42
%
 
42
%
MCBC proportionate share in MillerCoors' equity
3,077.1

 
3,015.2

Difference between MCBC contributed cost basis and proportionate share of the underlying equity in net assets of MillerCoors(1)
(659.2
)
 
(661.6
)
Accounting policy elections
35.0

 
35.0

Investment in MillerCoors
$
2,452.9

 
$
2,388.6

(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, 2015
 
June 30, 2014
 
June 30, 2015
 
June 30, 2014
 
(In millions)
Net sales
$
2,202.7

 
$
2,206.7

 
$
3,977.3

 
$
3,997.1

Cost of goods sold
(1,240.5
)
 
(1,282.4
)
 
(2,316.7
)
 
(2,376.5
)
Gross profit
$
962.2

 
$
924.3

 
$
1,660.6

 
$
1,620.6

Operating income
$
493.4

 
$
449.8

 
$
802.7

 
$
747.3

Net income attributable to MillerCoors
$
487.2

 
$
445.2

 
$
791.8

 
$
736.4


MCBC's proportional share in MillerCoors of net income reported under the equity method 
The following represents our proportionate share in net income attributable to MillerCoors reported under the equity method of accounting:
 
Three Months Ended
 
Six Months Ended
 
June 30, 2015
 
June 30, 2014
 
June 30, 2015
 
June 30, 2014
 
(In millions, except percentages)
Net income attributable to MillerCoors
$
487.2

 
$
445.2

 
$
791.8

 
$
736.4

MCBC economic interest
42
%
 
42
%
 
42
%
 
42
%
MCBC proportionate share of MillerCoors net income(1)
204.6

 
187.0

 
332.6

 
309.3

Amortization of the difference between MCBC contributed cost basis and proportionate share of the underlying equity in net assets of MillerCoors
1.3

 
1.2

 
2.4

 
2.3

Share-based compensation adjustment(1)(2)
(0.4
)
 
1.9

 
(0.2
)
 
1.3

Equity income in MillerCoors
$
205.5

 
$
190.1

 
$
334.8

 
$
312.9


(1)
The sum of the quarterly proportionate share of MillerCoors net income and share-based compensation adjustment amounts may not agree to the year-to-date amounts due to rounding.
(2)
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.
Summary of transactions with MillerCoors 
The following table summarizes our transactions with MillerCoors:
 
Three Months Ended
 
Six Months Ended
 
June 30, 2015
 
June 30, 2014
 
June 30, 2015
 
June 30, 2014
 
(In millions)
Beer sales to MillerCoors
$
3.2

 
$
3.7

 
$
6.0

 
$
6.3

Beer purchases from MillerCoors
$
10.2

 
$
9.1

 
$
19.3

 
$
16.2

Service agreement costs and other charges to MillerCoors
$
0.7

 
$
0.7

 
$
1.3

 
$
1.1

Service agreement costs and other charges from MillerCoors
$
0.2

 
$
0.3

 
$
0.6

 
$
0.5

Schedules of Consolidated Investments 
The following summarizes the assets and liabilities of our consolidated VIEs (including noncontrolling interests):
 
As of
 
June 30, 2015
 
December 31, 2014
 
Total Assets
 
Total Liabilities
 
Total Assets
 
Total Liabilities
 
(In millions)
Grolsch
$
7.1

 
$
2.1

 
$
6.8

 
$
2.9

Cobra U.K.
$
34.7

 
$
0.8

 
$
31.0

 
$
0.8

Share-Based Payments (Tables)
Schedule of components of share-based compensation expense 
The following table summarizes share-based compensation expense:
 
Three Months Ended
 
Six Months Ended
 
June 30, 2015
 
June 30, 2014
 
June 30, 2015
 
June 30, 2014
 
(In millions)
Pretax compensation expense
$
4.9

 
$
3.8

 
$
8.1

 
$
12.1

Tax benefit
(1.3
)
 
(1.2
)
 
(2.1
)
 
(3.9
)
After-tax compensation expense
$
3.6

 
$
2.6

 
$
6.0

 
$
8.2

Schedule of non-vested RSUs, DSUs, PUs and PSUs outstanding and the activity for the period 
The following table represents non-vested RSUs, DSUs, PUs and PSUs as of June 30, 2015, and the activity during the six months ended June 30, 2015:
 
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, 2014
0.7

 
$47.75
 
0.5

 
$3.22
 
0.4

 
$50.49
Granted
0.2

 
$70.83
 
—

 
$—
 
0.1

 
$74.42
Vested
(0.2
)
 
$42.85
 
(0.5
)
 
$2.89
 
—

 
$—
Forfeited
(0.1
)
 
$50.17
 
—

 
$—
 
—

 
$—
Non-vested as of June 30, 2015
0.6

 
$55.59
 
—

 
$—
 
0.5

 
$57.05
The weighted-average fair value per unit for the non-vested PSUs is $65.73 as of June 30, 2015.
Schedule of stock options and SOSARs outstanding and the activity for the period 
The following table represents the summary of stock options and stock-only stock appreciation rights ("SOSARs") outstanding as of June 30, 2015, and the activity during the six months ended June 30, 2015:
 
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, 2014
2.2
 
$45.33
 
5.0
 
$
64.6

Granted
0.1
 
$74.81
 
 
 
 
Exercised
(0.8)
 
$44.85
 
 
 
 
Forfeited
—
 
$—
 
 
 
 
Outstanding as of June 30, 2015
1.5
 
$48.28
 
5.1
 
$
32.8

Exercisable at June 30, 2015
1.2
 
$45.13
 
4.3
 
$
30.8

Schedule of share-based compensation weighted average assumptions 
The fair value of each option granted in the first half of 2015 and 2014 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, 2015
 
June 30, 2014
Risk-free interest rate
1.70%
 
2.29%
Dividend yield
2.20%
 
2.57%
Volatility range
21.65%-29.90%
 
22.66%-26.57%
Weighted-average volatility
23.71%
 
25.59%
Expected term (years)
5.7
 
7.5
Weighted-average fair market value
$13.98
 
$12.78
Schedule of Share-based payment Award, Performance Share Units, Valuation Assumptions 
The fair value of the market metric for each PSU granted in the first half of 2015 and 2014 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, 2015
 
June 30, 2014
Risk-free interest rate
1.06%
 
0.72%
Dividend yield
2.20%
 
2.57%
Volatility range
12.73%-62.28%
 
12.45%-72.41%
Weighted-average volatility
21.53%
 
21.72%
Expected term (years)
2.8
 
2.8
Weighted-average fair market value
$74.42
 
$58.69
Special items (Tables)
Special items recorded by segment 
The table below summarizes special items recorded by segment:
 
Three Months Ended
 
Six Months Ended
 
June 30, 2015
 
June 30, 2014
 
June 30, 2015
 
June 30, 2014
 
(In millions)
Employee-related restructuring charges
 
 
 
 
 
 
 
Canada
$
—

 
$
0.1

 
$
—

 
$
5.4

Europe
0.2

 
0.5

 
(1.0
)
 
1.0

MCI(1)
3.2

 
—

 
3.2

 
—

Corporate
—

 
0.3

 
—

 
0.3

Impairments or asset abandonment charges
 
 
 
 
 
 
 
Canada - Intangible asset write-off(2)
—

 
—

 
—

 
4.9

Canada - Asset abandonment(3)
8.2

 
—

 
8.2

 
—

Europe - Asset abandonment(4)
9.3

 
—

 
21.1

 
—

MCI - Asset write-off(1)
3.2

 
—

 
3.2

 
—

Unusual or infrequent items
 
 
 
 
 
 
 
Europe - Flood loss (insurance reimbursement), net(5)
(0.4
)
 
1.8

 
(2.4
)
 
1.8

Termination fees and other (gains) losses
 
 
 
 
 
 
 
Canada - Termination fee income(2)
—

 
—

 
—

 
(63.2
)
Europe - Termination fee expense, net(6)
10.0

 
—

 
10.0

 
—

Total Special items, net
$
33.7

 
$
2.7

 
$
42.3

 
$
(49.8
)

(1)
During the second quarter of 2015, we announced our decision to substantially restructure our business in China and consequently, recognized employee-related and asset write-off charges.
(2)
Upon termination of our MMI operations in the first quarter of 2014, we recognized termination fee income and charges associated with the write-off of the definite-lived intangible asset associated with the joint venture. See Note 4, "Investments" for further discussion.
(3)
During the three and six months ended June 30, 2015, we incurred $8.2 million of charges related to the closure of a bottling line within our Toronto brewery as part of an ongoing strategic review of our Canadian supply chain network.
(4)
In the second quarter of 2015, we completed the closure of the Alton brewery in the U.K. as part of our strategic review of our European supply chain network. As a result, we incurred accelerated depreciation expense in excess of our normal depreciation associated with this brewery of $8.0 million and $19.8 million for the three and six months ended June 30, 2015, respectively, as well as an additional $1.3 million in other charges related to the closure of the brewery. We may continue to incur additional charges associated with the closure, which will also be recorded within special items.
(5)
During the three and six months ended June 30, 2015, we recorded $0.4 million and $2.4 million, respectively, of income for insurance proceeds received related to significant flooding in Czech Republic that occurred during the second quarter of 2013.
(6)
In December 2013, we entered into an agreement with Heineken to early terminate our contract brewing and kegging agreement under which we produced and packaged the Foster's and Kronenbourg brands in the U.K. As a result of the termination, Heineken agreed to pay us an aggregate early termination payment of British Pound ("GBP") 13.0 million, of which we received GBP 5.0 million in 2014 and the remaining GBP 8.0 million on April 30, 2015. The full amount of the termination payment ($19.4 million upon recognition) is included in income within special items for the three and six months ended June 30, 2015, following the completion of the transition period.
Separately, in June 2015, we terminated our agreement with Carlsberg whereby it held the exclusive distribution rights for the Staropramen brand in the U.K. As a result of this termination, we agreed to pay Carlsberg an early termination payment of GBP 19.0 million ($29.4 million at payment date), which was recognized as a special charge during the second quarter of 2015. The transition period concludes on December 27, 2015, at which time we will have the exclusive distribution rights of the Staropramen brand in the U.K.
Change in the restructuring accrual 
The table below summarizes the activity in the restructuring accruals by segment:
 
Canada
 
Europe
 
MCI
 
Corporate
 
Total
 
(In millions)
Total at December 31, 2014
$
3.8

 
$
11.5

 
$
—

 
$
0.2

 
$
15.5

Charges incurred
—

 
0.2

 
3.2

 
—

 
3.4

Payments made
(2.1
)
 
(5.7
)
 
—

 
(0.2
)
 
(8.0
)
Changes in estimates
—

 
(1.2
)
 
—

 
—

 
(1.2
)
Foreign currency and other adjustments
(0.2
)
 
(0.2
)
 
—

 
—

 
(0.4
)
Total at June 30, 2015
$
1.5

 
$
4.6

 
$
3.2

 
$
—

 
$
9.3

 
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

Other Income and Expense (Tables)
Summarization of other income and expenses
 
Three Months Ended
 
Six Months Ended
 
June 30, 2015
 
June 30, 2014
 
June 30, 2015
 
June 30, 2014
 
(In millions)
Gain on sale of non-operating asset
$
3.3

 
$
—

 
$
3.3

 
$
—

Gain (loss) from foreign exchange and derivative activity
2.7

 
0.5

 
0.1

 
1.3

Other, net
0.3

 
0.2

 
0.3

 
0.2

Other income (expense), net
$
6.3

 
$
0.7

 
$
3.7

 
$
1.5

Earnings per Share ("EPS") (Tables)
Effect of dilutive securities on diluted earnings per share 
The following summarizes the effect of dilutive securities on diluted EPS:
 
Three Months Ended
 
Six Months Ended
 
June 30, 2015
 
June 30, 2014
 
June 30, 2015
 
June 30, 2014
 
(In millions, except per share amounts)
Amounts attributable to Molson Coors Brewing Company:
 
 
 
 
 
 
 
Net income (loss) from continuing operations
$
229.3

 
$
290.7

 
$
308.5

 
$
456.0

Income (loss) from discontinued operations, net of tax
(0.3
)
 
0.2

 
1.6

 
(1.7
)
Net income (loss) attributable to Molson Coors Brewing Company
$
229.0

 
$
290.9

 
$
310.1

 
$
454.3

Weighted-average shares for basic EPS
185.7

 
184.8

 
185.8

 
184.5

Effect of dilutive securities:
 
 
 
 
 
 
 
RSUs, DSUs, PUs and PSUs
0.4

 
0.4

 
0.4

 
0.6

Stock options and SOSARs
0.4

 
0.7

 
0.5

 
0.6

Weighted-average shares for diluted EPS
186.5

 
185.9

 
186.7

 
185.7

Basic net income (loss) attributable to Molson Coors Brewing Company per share(1):
 
 
 
 

 

From continuing operations
$
1.23

 
$
1.57

 
$
1.66

 
$
2.47

From discontinued operations
—

 
—

 
0.01

 
(0.01
)
Basic net income (loss) attributable to Molson Coors Brewing Company per share
$
1.23

 
$
1.57

 
$
1.67

 
$
2.46

Diluted net income (loss) attributable to Molson Coors Brewing Company per share(1):
 
 
 
 


 
 
From continuing operations
$
1.23

 
$
1.56

 
$
1.65

 
$
2.46

From discontinued operations
—

 
—

 
0.01

 
(0.01
)
Diluted net income (loss) attributable to Molson Coors Brewing Company per share
$
1.23

 
$
1.56

 
$
1.66

 
$
2.45

Dividends declared and paid per share
$
0.41

 
$
0.37

 
$
0.82

 
$
0.74


(1)
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 period for each reporting period presented. 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.
Anti-dilutive securities excluded from computation of diluted earnings per share 
The following anti-dilutive securities were excluded from the computation of the effect of dilutive securities on diluted EPS:
 
Three Months Ended
 
Six Months Ended
 
June 30, 2015
 
June 30, 2014
 
June 30, 2015
 
June 30, 2014
 
(In millions)
RSUs, stock options and SOSARs
0.1

 
0.1

 
0.1

 
—

Goodwill and Intangible Assets (Tables)
Schedule of changes in goodwill 
The following summarizes the change in goodwill for the six months ended June 30, 2015:
 
Canada
 
Europe
 
MCI
 
Consolidated
 
(In millions)
Balance at December 31, 2014
$
656.5

 
$
1,528.0

 
$
7.1

 
$
2,191.6

Business acquisition(1)
—

 
—

 
11.6

 
11.6

Foreign currency translation
(45.8
)
 
(41.8
)
 
(0.3
)
 
(87.9
)
Balance at June 30, 2015
$
610.7

 
$
1,486.2

 
$
18.4

 
$
2,115.3


(1)
On April 1, 2015, we completed the acquisition of Mount Shivalik Breweries Ltd., a regional brewer in India. As part of the preliminary purchase price accounting, goodwill generated in conjunction with this acquisition has been recorded within our MCI segment beginning in the second quarter of 2015 and included within the India reporting unit of our MCI segment for purposes of our annual goodwill impairment testing.
Schedule of intangible assets excluding goodwill 
The following table presents details of our intangible assets, other than goodwill, as of June 30, 2015:
 
Useful life
 
Gross
 
Accumulated
amortization
 
Net
 
(Years)
 
(In millions)
Intangible assets subject to amortization:
 
 
 
 
 
 
 
Brands
 3 - 40
 
$
467.9

 
$
(230.5
)
 
$
237.4

License agreements and distribution rights
 3 - 28
 
105.5

 
(94.0
)
 
11.5

Other
 2 - 8
 
31.9

 
(30.1
)
 
1.8

Intangible assets not subject to amortization:
 
 
 
 
 
 
 
Brands
 Indefinite
 
4,295.4

 
—

 
4,295.4

Distribution networks
 Indefinite
 
809.7

 
—

 
809.7

Other
 Indefinite
 
17.5

 
—

 
17.5

Total
 
 
$
5,727.9

 
$
(354.6
)
 
$
5,373.3


The following table presents details of our intangible assets, other than goodwill, as of December 31, 2014:
 
Useful life
 
Gross
 
Accumulated
amortization
 
Net
 
(Years)
 
(In millions)
Intangible assets subject to amortization:
 
 
 
 
 
 
 
Brands
3 - 40
 
$
483.5

 
$
(229.1
)
 
$
254.4

License agreements and distribution rights
3 - 28
 
122.0

 
(101.1
)
 
20.9

Other
2 - 8
 
31.7

 
(29.4
)
 
2.3

Intangible assets not subject to amortization:
 
 
 
 
 
 
 
Brands
Indefinite
 
4,590.2

 
—

 
4,590.2

Distribution networks
Indefinite
 
870.5

 
—

 
870.5

Other
Indefinite
 
17.5

 
—

 
17.5

Total
 
 
$
6,115.4

 
$
(359.6
)
 
$
5,755.8

Debt (Tables)
Total long-term borrowings
Our total borrowings as of June 30, 2015, and December 31, 2014, were comprised of the following:
 
As of
 
June 30, 2015
 
December 31, 2014
 
(In millions)
Senior notes:
 
 
 
CAD 900 million 5.0% notes due 2015
$
720.3

 
$
774.5

CAD 500 million 3.95% Series A notes due 2017
400.2

 
430.3

$300 million 2.0% notes due 2017(1)
300.5

 
300.0

$500 million 3.5% notes due 2022(1)
508.2

 
510.8

$1.1 billion 5.0% notes due 2042
1,100.0

 
1,100.0

Less: unamortized debt discounts
(3.8
)
 
(4.2
)
Total long-term debt (including current portion)
3,025.4

 
3,111.4

Less: current portion of long-term debt
(720.2
)
 
(774.3
)
Total long-term debt
$
2,305.2

 
$
2,337.1

 
 
 
 
Short-term borrowings:
 
 
 
Commercial paper program(2)
$
65.0

 
$
—

Cash pool overdrafts(3)
23.4

 
64.6

Japanese Yen ("JPY") 1.5 billion line of credit(4)
5.7

 
4.9

Other short-term borrowings
18.1

 
5.6

Current portion of long-term debt
720.2

 
774.3

Current portion of long-term debt and short-term borrowings
$
832.4

 
$
849.4


(1)
In the first quarter of 2015, we entered into interest rate swaps to economically convert our fixed rate $300 million 2.0% notes due 2017 ("$300 million notes") to floating rate debt consistent with the interest rate swaps on our $500 million 3.5% notes due 2022 ("$500 million notes") entered into during 2014. As a result of these hedge programs, the carrying value of the $300 million and $500 million notes include adjustments of $0.5 million and $8.2 million, respectively, for fair value movements attributable to the benchmark interest rate. The carrying value of the $500 million note included an adjustment of $10.8 million for fair value movements attributable to the benchmark interest rate as of December 31, 2014.
In the first quarter of 2015, we also entered into a cross currency swap with a total notional of Euro ("EUR") 265 million ($300 million upon execution) in order to hedge a portion of the foreign currency translational impacts of our European investment. As a result of this cross currency swap and the above mentioned interest rate swaps, we have economically converted the $300 million notes and associated interest to a floating rate EUR denomination. The effective interest rate for the $300 million notes, adjusted for these swaps, was 2.72% and 1.84%, for the three and six months ended June 30, 2015, respectively. The interest rate swaps on our $500 million notes, resulted in an effective interest rate of 1.41% and 1.37% for the three and six months ended June 30, 2015, and 3.31% and 3.40% for the three and six months ended June 30, 2014, respectively. See Note 13, "Derivative Instruments and Hedging Activities" for further details.
(2)
As of June 30, 2015, the weighted-average effective interest rate and tenor for the outstanding commercial paper borrowings was 0.49% and 32.2 days, respectively. There were no outstanding borrowings under the commercial paper program as of December 31, 2014. As of June 30, 2015, we have $685.0 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, and we have no other borrowings drawn on this revolving credit facility.
(3)
As of June 30, 2015, we had $23.4 million in bank overdrafts and $44.0 million in bank cash related to our cross-border, cross-currency cash pool for a net positive position of $20.6 million. As of December 31, 2014, we had $64.6 million in bank overdrafts and $80.0 million in bank cash related to our cross-border, cross-currency cash pool for a net positive position of $15.4 million.
(4)
In addition to our JPY line of credit, we have a EUR revolving credit facility and GBP and CAD overdraft facilities which we had no borrowings under as of June 30, 2015, or December 31, 2014.
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, 2015, and December 31, 2014, the fair value of our outstanding long-term debt (including current portion) was $3,032.4 million and $3,240.6 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 and are also classified as Level 2.
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, 2015, and December 31, 2014, we were in compliance with all of these restrictions and have met all debt payment obligations.
Accumulated Other Comprehensive Income (Loss) (Tables)
Schedule of Accumulated Other Comprehensive Income (Loss) 
12. Accumulated Other Comprehensive Income (Loss) ("AOCI")
 
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, 2014
$
129.8

 
$
15.0

 
$
(658.5
)
 
$
(384.7
)
 
$
(898.4
)
Foreign currency translation adjustments
(393.5
)
 
—

 
—

 
—

 
(393.5
)
Unrealized gain (loss) on derivative instruments
—

 
10.7

 
—

 
—

 
10.7

Reclassification of derivative (gain) loss to income
—

 
(4.2
)
 
—

 
—

 
(4.2
)
Pension and other postretirement benefit adjustments
—

 
—

 
(2.2
)
 
—

 
(2.2
)
Amortization of net prior service (benefit) cost and net actuarial (gain) loss to income
—

 
—

 
23.3

 
—

 
23.3

Ownership share of unconsolidated subsidiaries' other comprehensive income (loss)
—

 
—

 
—

 
(0.5
)
 
(0.5
)
Tax benefit (expense)
(31.1
)
 
(0.9
)
 
(4.6
)
 
0.2

 
(36.4
)
As of June 30, 2015
$
(294.8
)
 
$
20.6

 
$
(642.0
)
 
$
(385.0
)
 
$
(1,301.2
)
Schedule of Reclassifications from Accumulated Other Comprehensive Income to Earnings 
 
 
Three Months Ended
 
Six Months Ended
 
 
 
 
June 30, 2015
 
June 30, 2014
 
June 30, 2015
 
June 30, 2014
 
 
 
 
Reclassifications from AOCI
 
Location of gain (loss)
recognized in income
 
 
(In millions)
 
 
Gain/(loss) on cash flow hedges:
 
 
 
 
 
 
 
 
 
 
Forward starting interest rate swaps
 
$
(0.3
)
 
$
(0.4
)
 
$
(0.6
)
 
$
(0.8
)
 
Interest expense, net
Foreign currency forwards
 
(2.9
)
 
0.7

 
(5.3
)
 
2.3

 
Other income (expense), net
Foreign currency forwards
 
5.4

 
3.0

 
10.1

 
6.3

 
Cost of goods sold
Commodity swaps
 
—

 
0.2

 
—

 
0.4

 
Cost of goods sold
Total income (loss) reclassified, before tax
 
2.2

 
3.5

 
4.2

 
8.2

 
 
Income tax benefit (expense)
 
(0.6
)
 
(1.1
)
 
(1.2
)
 
(2.6
)
 
 
Net income (loss) reclassified, net of tax
 
$
1.6

 
$
2.4

 
$
3.0

 
$
5.6

 
 
 
 
 
 
 
 
 
 
 
 
 
Amortization of defined benefit pension and other postretirement benefit plan items:
 
 
 
 
 
 
 
 
 
 
Prior service benefit (cost)
 
$
(0.1
)
 
$
0.5

 
$
(0.2
)
 
$
1.1

 
(1)
Net actuarial gain (loss)
 
(11.9
)
 
(9.0
)
 
(23.1
)
 
(17.9
)
 
(1)
Total income (loss) reclassified, before tax
 
(12.0
)
 
(8.5
)
 
(23.3
)
 
(16.8
)
 
 
Income tax benefit (expense)
 
2.7

 
0.7

 
5.0

 
1.4

 
 
Net income (loss) reclassified, net of tax
 
$
(9.3
)
 
$
(7.8
)
 
$
(18.3
)
 
$
(15.4
)
 
 
 
 
 
 
 
 
 
 
 
 
 
Total income (loss) reclassified, net of tax
 
$
(7.7
)
 
$
(5.4
)
 
$
(15.3
)
 
$
(9.8
)
 
 
(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)
Schedule of Derivative Assets and Liabilities at Fair Value 
The table below summarizes our derivative assets and liabilities that were measured at fair value as of June 30, 2015, and December 31, 2014.
 
 
 
Fair value measurements as of June 30, 2015
 
Total at June 30, 2015
 
Quoted prices in
active markets
(Level 1)
 
Significant other
observable inputs
(Level 2)
 
Significant
unobservable
inputs (Level 3)
 
(In millions)
Cross currency swap
$
3.7

 
$
—

 
$
3.7

 
$
—

Interest rate swaps
(7.8
)
 
—

 
(7.8
)
 
—

Foreign currency forwards
36.0

 
—

 
36.0

 
—

Commodity swaps
(13.1
)
 
—

 
(13.1
)
 
—

Total
$
18.8

 
$
—

 
$
18.8

 
$
—

 
 
 
Fair value measurements as of December 31, 2014
 
Total at December 31, 2014
 
Quoted prices in
active markets
(Level 1)
 
Significant other
observable inputs
(Level 2)
 
Significant
unobservable
inputs (Level 3)
 
(In millions)
Interest rate swaps
$
(2.2
)
 
$
—

 
$
(2.2
)
 
$
—

Foreign currency forwards
31.6

 
—

 
31.6

 
—

Commodity swaps
(8.9
)
 
—

 
(8.9
)
 
—

Total
$
20.5

 
$
—

 
$
20.5

 
$
—

Fair Value of Derivative Instruments in the Condensed Consolidated Balance Sheets 
Fair Value of Derivative Instruments in the Condensed Consolidated Balance Sheet (in millions)
 
June 30, 2015
 
 
 
Asset derivatives
 
Liability derivatives
 
Notional amount
 
Balance sheet location
 
Fair value
 
Balance sheet location
 
Fair value
Derivatives designated as hedging instruments:
 
 
 
 
 
 
 
 
Cross currency swap
$
295.5

 
Other non-current assets
 
$
3.7

 
Other liabilities
 
$
—

Interest rate swaps
$
1,248.2

 
Other current assets
 
1.8

 
Accounts payable and other current liabilities
 
(18.3
)
 
 
 
Other non-current assets
 
8.7

 
Other liabilities
 
—

Foreign currency forwards
$
340.0

 
Other current assets
 
23.9

 
Accounts payable and other current liabilities
 
(0.1
)
 
 
 
Other non-current assets
 
13.0

 
Other liabilities
 
(0.8
)
Total derivatives designated as hedging instruments
 
 
 
$
51.1

 
 
 
$
(19.2
)
Derivatives not designated as hedging instruments:
 
 
 
 
 
 
Commodity swaps
$
123.2

 
Other current assets
 
$
0.3

 
Accounts payable and other current liabilities
 
$
(7.5
)
 
 
 
Other non-current assets
 
0.5

 
Other liabilities
 
(6.4
)
Foreign currency forwards

 
Other current assets
 

 
Accounts payable and other current liabilities
 
—

Total derivatives not designated as hedging instruments
 
$
0.8

 
 
 
$
(13.9
)
 
December 31, 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
$
844.2

 
Other current assets
 
$
—

 
Accounts payable and other current liabilities
 
$
(13.0
)
 
 
 
Other non-current assets
 
10.8

 
Other liabilities
 
—

Foreign currency forwards
$
343.4

 
Other current assets
 
19.5

 
Accounts payable and other current liabilities
 
—

 
 
 
Other non-current assets
 
12.1

 
Other liabilities
 
—

Total derivatives designated as hedging instruments
 
 
 
$
42.4

 
 
 
$
(13.0
)
Derivatives not designated as hedging instruments:
 
 
 
 
 
 
Commodity swaps
$
111.1

 
Other current assets
 
$
0.2

 
Accounts payable and other current liabilities
 
$
(4.9
)
 
 
 
Other non-current assets
 
0.4

 
Other liabilities
 
(4.6
)
Total derivatives not designated as hedging instruments
 
$
0.6

 
 
 
$
(9.5
)
The Effect of Derivative Instruments on the Condensed Consolidated Statements of Operations 
The Pretax Effect of Derivative Instruments on the Condensed Consolidated Statement of Operations (in millions)
For the Three Months Ended June 30, 2015
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
 
$
10.7

 
Interest expense, net
 
$
(0.3
)
 
Interest expense, net
 
$
—

Foreign currency forwards
 
(10.3
)
 
Other income (expense), net
 
(2.9
)
 
Other income (expense), net
 
—

 
 
 

 
Cost of goods sold
 
5.4

 
Cost of goods sold
 
—

Total
 
$
0.4

 
 
 
$
2.2

 
 
 
$
—

For the Three Months Ended June 30, 2015
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 swap
 
$
(11.0
)
 
Interest expense, net
 
$
—

 
Interest expense, net
 
$
(1.2
)
Total
 
$
(11.0
)
 
 
 
$
—

 
 
 
$
(1.2
)
For the Three Months Ended June 30, 2015
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
 
$
(11.1
)
 
Interest expense, net
Total
 
$
(11.1
)
 
 
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
 
Location of gain (loss) recognized in income
Interest rate swap
 
$
1.2

 
Interest expense, net
Total
 
$
1.2

 
 

For the Six Months Ended June 30, 2015
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
 
$
(5.0
)
 
Interest expense, net
 
$
(0.6
)
 
Interest expense, net
 
$
—

Foreign currency forwards
 
11.2

 
Other income (expense), net
 
(5.3
)
 
Other income (expense), net
 
—

 
 
 

 
Cost of goods sold
 
10.1

 
Cost of goods sold
 
—

Total
 
$
6.2

 
 
 
$
4.2

 
 
 
$
—

For the Six Months Ended June 30, 2015
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 swap
 
$
4.5

 
Interest expense, net
 
$
—

 
Interest expense, net
 
$
(0.8
)
Total
 
$
4.5

 
 
 
$
—

 
 
 
$
(0.8
)
For the Six Months Ended June 30, 2015
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
 
$
(2.1
)
 
Interest expense, net
Total
 
$
(2.1
)
 
 
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 swap
 
$
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
 
Location of gain (loss) recognized in income
Interest rate swap
 
$
1.2

 
Interest expense, net
Total
 
$
1.2

 
 
Other Derivatives 
Other Derivatives (in millions)
For the Three Months Ended June 30, 2015
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
 
$
(5.4
)
Foreign currency forwards
 
Other income (expense), net
 
(1.1
)
Total
 
 
 
$
(6.5
)
For the Three Months Ended June 30, 2014
Derivatives not in hedging relationships
 
Location of gain (loss) recognized in
income on derivative
 
Amount of gain (loss) recognized in
income on derivative
Commodity Swaps
 
Cost of goods sold
 
$
0.7

Total
 
 
 
$
0.7

For the Six Months Ended June 30, 2015
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
 
$
(6.0
)
Foreign currency forwards
 
Other income (expense), net
 
0.1

Total
 
 
 
$
(5.9
)
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
)
Pension and Other Postretirement Benefits (Tables)
Net periodic pension and OPEB cost
14. Pension and Other Postretirement Benefits ("OPEB")
 
For the Three Months Ended
 
June 30, 2015
 
June 30, 2014
 
Pension
 
OPEB
 
Consolidated
 
Pension
 
OPEB
 
Consolidated
 
(In millions)
Net periodic pension and OPEB cost:
 
 
 
 
 
 
 
 
 
 
 
Service cost - benefits earned during the year
$
2.6

 
$
0.4

 
$
3.0

 
$
3.3

 
$
0.8

 
$
4.1

Interest cost on projected benefit obligation
34.9

 
1.5

 
36.4

 
42.6

 
1.9

 
44.5

Expected return on plan assets
(44.6
)
 
—

 
(44.6
)
 
(49.8
)
 
—

 
(49.8
)
Amortization of prior service cost (benefit)
0.2

 
(0.1
)
 
0.1

 
0.2

 
(0.7
)
 
(0.5
)
Amortization of net actuarial loss (gain)
11.9

 
—

 
11.9

 
9.3

 
(0.3
)
 
9.0

Less: expected participant contributions
(0.2
)
 
—

 
(0.2
)
 
(0.3
)
 
—

 
(0.3
)
Net periodic pension and OPEB cost
$
4.8

 
$
1.8

 
$
6.6

 
$
5.3

 
$
1.7

 
$
7.0


 
For the Six Months Ended
 
June 30, 2015
 
June 30, 2014
 
Pension
 
OPEB
 
Consolidated
 
Pension
 
OPEB
 
Consolidated
 
(In millions)
Net periodic pension and OPEB cost:
 

 
 

 
 
 
 
 
 
 
 
Service cost - benefits earned during the year
$
5.2

 
$
0.9

 
$
6.1

 
$
6.6

 
$
1.5

 
$
8.1

Interest cost on projected benefit obligation
69.3

 
3.0

 
72.3

 
84.7

 
3.6

 
88.3

Expected return on plan assets
(88.7
)
 
—

 
(88.7
)
 
(98.9
)
 
—

 
(98.9
)
Amortization of prior service cost (benefit)
0.4

 
(0.2
)
 
0.2

 
0.4

 
(1.5
)
 
(1.1
)
Amortization of net actuarial loss (gain)
23.1

 
—

 
23.1

 
18.4

 
(0.5
)
 
17.9

Curtailment (gain) loss
(1.0
)
 
—

 
(1.0
)
 
—

 
—

 
—

Less: expected participant contributions
(0.4
)
 
—

 
(0.4
)
 
(0.6
)
 
—

 
(0.6
)
Net periodic pension and OPEB cost
$
7.9

 
$
3.7

 
$
11.6

 
$
10.6

 
$
3.1

 
$
13.7


Supplemental Guarantor Information Supplemental (Tables)
Schedule of Supplemental Guarantor Information 
MOLSON COORS BREWING COMPANY AND SUBSIDIARIES
CONDENSED CONSOLIDATING STATEMENT OF OPERATIONS
FOR THE THREE MONTHS ENDED JUNE 30, 2015
(IN MILLIONS)
(UNAUDITED)

 
Parent
Guarantor and
2012 Issuer
 
Subsidiary
Guarantors
 
Subsidiary
Non
Guarantors
 
Eliminations
 
Consolidated
Sales
$
6.1

 
$
1,082.6

 
$
351.4

 
$
(7.1
)
 
$
1,433.0

Excise taxes
—

 
(348.5
)
 
(78.8
)
 
—

 
(427.3
)
Net sales
6.1

 
734.1

 
272.6

 
(7.1
)
 
1,005.7

Cost of goods sold
—

 
(437.8
)
 
(137.8
)
 
(4.3
)
 
(579.9
)
Gross profit
6.1

 
296.3

 
134.8

 
(11.4
)
 
425.8

Marketing, general and administrative expenses
(30.3
)
 
(176.5
)
 
(87.9
)
 
11.4

 
(283.3
)
Special items, net
—

 
1.7

 
(35.4
)
 
—

 
(33.7
)
Equity income (loss) in subsidiaries
184.0

 
(67.7
)
 
160.5

 
(276.8
)
 
—

Equity income in MillerCoors
—

 
205.5

 
—

 
—

 
205.5

Operating income (loss)
159.8

 
259.3

 
172.0

 
(276.8
)
 
314.3

Interest income (expense), net
(15.9
)
 
61.2

 
(75.9
)
 
—

 
(30.6
)
Other income (expense), net
0.3

 
3.6

 
2.4

 
—

 
6.3

Income (loss) from continuing operations before income taxes
144.2

 
324.1

 
98.5

 
(276.8
)
 
290.0

Income tax benefit (expense)
84.8

 
(141.2
)
 
(2.0
)
 
—

 
(58.4
)
Net income (loss) from continuing operations
229.0

 
182.9

 
96.5

 
(276.8
)
 
231.6

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

 
—

 
(0.3
)
 
—

 
(0.3
)
Net income (loss) including noncontrolling interests
229.0

 
182.9

 
96.2

 
(276.8
)
 
231.3

Net (income) loss attributable to noncontrolling interests
—

 
—

 
(2.3
)
 
—

 
(2.3
)
Net income (loss) attributable to MCBC
$
229.0

 
$
182.9

 
$
93.9

 
$
(276.8
)
 
$
229.0

Comprehensive income (loss) attributable to MCBC
$
463.6

 
$
417.9

 
$
242.2

 
$
(660.1
)
 
$
463.6


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



Schedule of Supplemental Guarantor Information 
MOLSON COORS BREWING COMPANY AND SUBSIDIARIES
CONDENSED CONSOLIDATING BALANCE SHEET
AS OF JUNE 30, 2015
(IN MILLIONS)
(UNAUDITED)
 
Parent
Guarantor and
2012 Issuer
 
Subsidiary
Guarantors
 
Subsidiary
Non
Guarantors
 
Eliminations
 
Consolidated
Assets
 
 
 
 
 
 
 
 
 
Current assets:
 
 
 
 
 
 
 
 
 
Cash and cash equivalents
$
85.1

 
$
199.1

 
$
129.6

 
$
—

 
$
413.8

Accounts receivable, net
—

 
384.9

 
210.2

 
—

 
595.1

Other receivables, net
25.1

 
44.2

 
21.2

 
—

 
90.5

Total inventories
—

 
195.1

 
49.2

 
—

 
244.3

Other current assets, net
6.2

 
59.1

 
40.0

 
—

 
105.3

Deferred tax assets
2.2

 
0.9

 
30.8

 
(6.7
)
 
27.2

Intercompany accounts receivable
—

 
3,688.7

 
316.5

 
(4,005.2
)
 
—

Total current assets
118.6

 
4,572.0

 
797.5

 
(4,011.9
)
 
1,476.2

Properties, net
28.8

 
1,079.0

 
601.6

 
—

 
1,709.4

Goodwill
—

 
1,073.6

 
1,041.7

 
—

 
2,115.3

Other intangibles, net
—

 
3,624.8

 
1,748.5

 
—

 
5,373.3

Investment in MillerCoors
—

 
2,452.9

 
—

 
—

 
2,452.9

Net investment in and advances to subsidiaries
12,673.4

 
4,047.9

 
5,587.1

 
(22,308.4
)
 
—

Deferred tax assets
18.0

 
20.7

 
0.2

 
12.3

 
51.2

Other assets, net
32.2

 
144.9

 
41.8

 
—

 
218.9

Total assets
$
12,871.0

 
$
17,015.8

 
$
9,818.4

 
$
(26,308.0
)
 
$
13,397.2

Liabilities and equity
 
 
 
 
 
 
 
 
 
Current liabilities:
 
 
 
 
 
 
 
 
 
Accounts payable and other current liabilities
$
44.1

 
$
882.6

 
$
406.2

 
$
—

 
$
1,332.9

Deferred tax liabilities
—

 
185.6

 
0.1

 
(6.7
)
 
179.0

Current portion of long-term debt and short-term borrowings
65.0

 
720.2

 
47.2

 
—

 
832.4

Discontinued operations
—

 
—

 
5.2

 
—

 
5.2

Intercompany accounts payable
3,229.0

 
353.3

 
422.9

 
(4,005.2
)
 
—

Total current liabilities
3,338.1

 
2,141.7

 
881.6

 
(4,011.9
)
 
2,349.5

Long-term debt
1,905.3

 
399.9

 
—

 
—

 
2,305.2

Pension and postretirement benefits
3.1

 
259.9

 
6.0

 
—

 
269.0

Deferred tax liabilities
—

 
—

 
726.7

 
12.3

 
739.0

Other liabilities
18.5

 
34.0

 
37.4

 
—

 
89.9

Discontinued operations
—

 
—

 
13.2

 
—

 
13.2

Intercompany notes payable
—

 
1,379.4

 
5,332.7

 
(6,712.1
)
 
—

Total liabilities
5,265.0

 
4,214.9

 
6,997.6

 
(10,711.7
)
 
5,765.8

MCBC stockholders' equity
7,607.1

 
18,132.5

 
4,175.9

 
(22,308.4
)
 
7,607.1

Intercompany notes receivable
(1.1
)
 
(5,331.6
)
 
(1,379.4
)
 
6,712.1

 
—

Total stockholders' equity
7,606.0

 
12,800.9

 
2,796.5

 
(15,596.3
)
 
7,607.1

Noncontrolling interests
—

 
—

 
24.3

 
—

 
24.3

Total equity
7,606.0

 
12,800.9

 
2,820.8

 
(15,596.3
)
 
7,631.4

Total liabilities and equity
$
12,871.0

 
$
17,015.8

 
$
9,818.4

 
$
(26,308.0
)
 
$
13,397.2


MOLSON COORS BREWING COMPANY AND SUBSIDIARIES
CONDENSED CONSOLIDATING BALANCE SHEET
AS OF DECEMBER 31, 2014
(IN MILLIONS)
(UNAUDITED)
 
Parent
Guarantor and
2012 Issuer
 
Subsidiary
Guarantors
 
Subsidiary
Non
Guarantors
 
Eliminations
 
Consolidated
Assets
 
 
 
 
 
 
 
 
 
Current assets:
 
 
 
 
 
 
 
 
 
Cash and cash equivalents
$
40.9

 
$
470.7

 
$
113.0

 
$
—

 
$
624.6

Accounts receivable, net
2.3

 
391.0

 
134.4

 
—

 
527.7

Other receivables, net
17.4

 
50.3

 
26.3

 
—

 
94.0

Total inventories
—

 
170.1

 
32.1

 
—

 
202.2

Other current assets, net
7.0

 
55.4

 
40.8

 
—

 
103.2

Deferred tax assets
2.2

 
—

 
31.6

 
(6.6
)
 
27.2

Intercompany accounts receivable
—

 
3,313.0

 
251.8

 
(3,564.8
)
 
—

Total current assets
69.8

 
4,450.5

 
630.0

 
(3,571.4
)
 
1,578.9

Properties, net
26.9

 
1,161.4

 
609.7

 
—

 
1,798.0

Goodwill
—

 
1,085.2

 
1,106.4

 
—

 
2,191.6

Other intangibles, net
—

 
3,883.9

 
1,871.9

 
—

 
5,755.8

Investment in MillerCoors
—

 
2,388.6

 
—

 
—

 
2,388.6

Net investment in and advances to subsidiaries
12,582.8

 
3,618.6

 
5,998.2

 
(22,199.6
)
 
—

Deferred tax assets
21.3

 
23.4

 
1.2

 
12.3

 
58.2

Other assets, net
31.1

 
144.7

 
49.4

 
—

 
225.2

Total assets
$
12,731.9

 
$
16,756.3

 
$
10,266.8

 
$
(25,758.7
)
 
$
13,996.3

Liabilities and equity
 
 
 
 
 
 
 
 
 
Current liabilities:
 
 
 
 
 
 
 
 
 
Accounts payable and other current liabilities
$
61.9

 
$
903.3

 
$
339.8

 
$
—

 
$
1,305.0

Deferred tax liabilities
—

 
171.4

 
—

 
(6.6
)
 
164.8

Current portion of long-term debt and short-term borrowings
—

 
774.3

 
75.1

 
—

 
849.4

Discontinued operations
—

 
—

 
6.1

 
—

 
6.1

Intercompany accounts payable
2,881.1

 
312.8

 
370.9

 
(3,564.8
)
 
—

Total current liabilities
2,943.0

 
2,161.8

 
791.9

 
(3,571.4
)
 
2,325.3

Long-term debt
1,907.3

 
429.8

 
—

 
—

 
2,337.1

Pension and postretirement benefits
2.9

 
534.0

 
6.0

 
—

 
542.9

Deferred tax liabilities
—

 
—

 
772.0

 
12.3

 
784.3

Other liabilities
16.6

 
45.8

 
42.7

 
—

 
105.1

Discontinued operations
—

 
—

 
15.5

 
—

 
15.5

Intercompany notes payable
—

 
1,211.9

 
5,669.5

 
(6,881.4
)
 
—

Total liabilities
4,869.8

 
4,383.3

 
7,297.6

 
(10,440.5
)
 
6,110.2

MCBC stockholders' equity
7,863.3

 
18,041.3

 
4,158.3

 
(22,199.6
)
 
7,863.3

Intercompany notes receivable
(1.2
)
 
(5,668.3
)
 
(1,211.9
)
 
6,881.4

 
—

Total stockholders' equity
7,862.1

 
12,373.0

 
2,946.4

 
(15,318.2
)
 
7,863.3

Noncontrolling interests
—

 
—

 
22.8

 
—

 
22.8

Total equity
7,862.1

 
12,373.0

 
2,969.2

 
(15,318.2
)
 
7,886.1

Total liabilities and equity
$
12,731.9

 
$
16,756.3

 
$
10,266.8

 
$
(25,758.7
)
 
$
13,996.3

Schedule of Supplemental Guarantor Information 
MOLSON COORS BREWING COMPANY AND SUBSIDIARIES
CONDENSED CONSOLIDATING STATEMENT OF CASH FLOWS
FOR THE SIX MONTHS ENDED JUNE 30, 2015
(IN MILLIONS)
(UNAUDITED)

 
Parent
Guarantor and
2012 Issuer
 
Subsidiary
Guarantors
 
Subsidiary
Non
Guarantors
 
Eliminations
 
Consolidated
Net cash provided by (used in) operating activities
$
192.2

 
$
83.5

 
$
168.7

 
$
(246.3
)
 
$
198.1

CASH FLOWS FROM INVESTING ACTIVITIES:
 
 
 
 
 
 
 
 
 
Additions to properties
(6.4
)
 
(84.2
)
 
(49.2
)
 
—

 
(139.8
)
Proceeds from sales of properties and other assets
—

 
2.3

 
5.2

 
—

 
7.5

Acquisition of businesses, net of cash acquired
—

 
(6.3
)
 
(44.8
)
 
—

 
(51.1
)
Investment in MillerCoors
—

 
(758.1
)
 
—

 
—

 
(758.1
)
Return of capital from MillerCoors
—

 
692.9

 
—

 
—

 
692.9

Loan repayments
—

 
4.5

 
14.5

 
—

 
19.0

Loan advances
—

 
(6.2
)
 
(19.9
)
 
—

 
(26.1
)
Other
—

 
(2.4
)
 
—

 
—

 
(2.4
)
Net intercompany investing activity
(56.2
)
 
(173.8
)
 
(184.5
)
 
414.5

 
—

Net cash provided by (used in) investing activities
(62.6
)
 
(331.3
)
 
(278.7
)
 
414.5

 
(258.1
)
CASH FLOWS FROM FINANCING ACTIVITIES:
 
 
 
 
 
 
 
 
 
Exercise of stock options under equity compensation plans
28.6

 
—

 
—

 
—

 
28.6

Excess tax benefits from share-based compensation
7.6

 
—

 
—

 
—

 
7.6

Dividends paid
(136.0
)
 
(246.3
)
 
(16.3
)
 
246.3

 
(152.3
)
Payments for purchases of treasury stock
(50.1
)
 
—

 
—

 
—

 
(50.1
)
Payments on long-term debt and capital lease obligations
(0.4
)
 
(0.3
)
 
—

 
—

 
(0.7
)
Proceeds from short-term borrowings
—

 
—

 
27.9

 
—

 
27.9

Payments on short-term borrowings
—

 
—

 
(14.6
)
 
—

 
(14.6
)
Net proceeds from (payments on) revolving credit facilities and commercial paper
64.9

 
—

 
2.3

 
—

 
67.2

Change in overdraft balances and other
—

 
—

 
(38.3
)
 
—

 
(38.3
)
Net intercompany financing activity
—

 
240.7

 
173.8

 
(414.5
)
 
—

Net cash provided by (used in) financing activities
(85.4
)
 
(5.9
)
 
134.8

 
(168.2
)
 
(124.7
)
CASH AND CASH EQUIVALENTS:
 
 
 
 
 
 
 
 
 
Net increase (decrease) in cash and cash equivalents
44.2

 
(253.7
)
 
24.8

 
—

 
(184.7
)
Effect of foreign exchange rate changes on cash and cash equivalents
—

 
(17.9
)
 
(8.2
)
 
—

 
(26.1
)
Balance at beginning of year
40.9

 
470.7

 
113.0

 
—

 
624.6

Balance at end of period
$
85.1

 
$
199.1

 
$
129.6

 
$
—

 
$
413.8


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
)
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
(1.8
)
 
0.6

 
128.0

 
—

 
126.8

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

Segment Reporting Net Sales (Details) (USD $)
In Millions, unless otherwise specified
3 Months Ended 6 Months Ended
Jun. 30, 2015
Jun. 30, 2014
Jun. 30, 2015
Jun. 30, 2014
Segment Reporting
 
 
 
 
Net sales
$ 1,005.7 
$ 1,188.5 
$ 1,705.7 
$ 2,004.5 
Maximum percentage of sales accounted for by a single customer (as a percent)
 
 
10.00% 
 
Canada [Member]
 
 
 
 
Segment Reporting
 
 
 
 
Net sales
444.9 
516.5 
758.4 
863.6 
Europe [Member]
 
 
 
 
Segment Reporting
 
 
 
 
Net sales
524.8 
629.4 
882.7 
1,067.0 
MCI [Member]
 
 
 
 
Segment Reporting
 
 
 
 
Net sales
37.2 
43.7 
66.3 
75.9 
Corporate [Member]
 
 
 
 
Segment Reporting
 
 
 
 
Net sales
0.1 
0.4 
0.5 
0.7 
Intersegment sales elimination
 
 
 
 
Segment Reporting
 
 
 
 
Net sales
$ (1.3)
$ (1.5)
$ (2.2)
$ (2.7)
Segment Reporting Income (Loss) From Continuing Operations (Details)
In Millions, unless otherwise specified
3 Months Ended 6 Months Ended 0 Months Ended 3 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
Jun. 30, 2015
USD ($)
Jun. 30, 2014
USD ($)
Mar. 31, 2014
USD ($)
Jun. 30, 2015
USD ($)
Jun. 30, 2014
USD ($)
Apr. 30, 2015
Heineken [Member]
GBP (£)
Jun. 30, 2015
Heineken [Member]
GBP (£)
Dec. 31, 2014
Heineken [Member]
GBP (£)
Jun. 30, 2015
Modelo [Member]
USD ($)
Jun. 30, 2014
Modelo [Member]
USD ($)
Mar. 31, 2014
Modelo [Member]
USD ($)
Jun. 30, 2015
Modelo [Member]
USD ($)
Jun. 30, 2014
Modelo [Member]
USD ($)
Jun. 30, 2015
Canada [Member]
USD ($)
Jun. 30, 2014
Canada [Member]
USD ($)
Jun. 30, 2015
Canada [Member]
USD ($)
Jun. 30, 2014
Canada [Member]
USD ($)
Jun. 30, 2015
Canada [Member]
Licensing Agreements [Member]
USD ($)
Jun. 30, 2014
Canada [Member]
Licensing Agreements [Member]
USD ($)
Jun. 30, 2015
Canada [Member]
Licensing Agreements [Member]
USD ($)
Jun. 30, 2014
Canada [Member]
Licensing Agreements [Member]
USD ($)
Jun. 30, 2015
U.S. [Member]
USD ($)
Jun. 30, 2014
U.S. [Member]
USD ($)
Jun. 30, 2015
U.S. [Member]
USD ($)
Jun. 30, 2014
U.S. [Member]
USD ($)
Jun. 30, 2015
Europe [Member]
USD ($)
Jun. 30, 2014
Europe [Member]
USD ($)
Jun. 30, 2015
Europe [Member]
USD ($)
Jun. 30, 2015
Europe [Member]
GBP (£)
Jun. 30, 2014
Europe [Member]
USD ($)
Jun. 30, 2015
Europe [Member]
Heineken [Member]
USD ($)
Jun. 30, 2015
Europe [Member]
Heineken [Member]
USD ($)
Jun. 30, 2015
MCI [Member]
USD ($)
Jun. 30, 2014
MCI [Member]
USD ($)
Jun. 30, 2015
MCI [Member]
USD ($)
Jun. 30, 2014
MCI [Member]
USD ($)
Jun. 30, 2015
Corporate [Member]
USD ($)
Jun. 30, 2014
Corporate [Member]
USD ($)
Jun. 30, 2015
Corporate [Member]
USD ($)
Jun. 30, 2014
Corporate [Member]
USD ($)
Segment Reporting
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Income (loss) from continuing operations before income taxes
$ 290.0 
$ 329.3 
 
$ 383.5 
$ 498.9 
 
 
 
 
 
 
 
 
$ 106.1 
$ 120.8 
$ 137.0 
$ 209.1 
 
 
 
 
$ 205.5 
$ 190.1 
$ 334.8 
$ 312.9 
$ 49.0 
$ 84.5 
$ 44.9 
 
$ 111.5 
 
 
$ (12.2)
$ (3.7)
$ (17.6)
$ (6.7)
$ (58.4)
$ (62.4)
$ (115.6)
$ (127.9)
Termination fee income
 
 
 
 
 
 
 
 
0 
0 
63.2 1
0 
63.2 
 
 
 
 
 
 
 
 
 
 
 
 
(10.0)
0 
(10.0)
 
0 
19.4 
19.4 
 
 
 
 
 
 
 
 
Amortization of Intangible Assets
(5.9)
(10.4)
 
(13.7)
(21.0)
 
 
 
 
 
 
 
 
 
 
 
 
0 
0 
0 
(4.9)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Termination fee expense
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
(29.4)
 
(29.4)
(19.0)
 
 
 
 
 
 
 
 
 
 
 
Write-off charge related to abandonment
 
 
 
 
 
 
 
 
 
 
 
 
 
(8.2)
 
 
 
 
 
 
 
 
 
 
 
(1.3)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Proceeds from early contract termination
 
 
 
 
 
8.0 
13.0 
5.0 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Gain Related to Release of Indirect-Tax Reserve, including interest
 
 
13.0 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
13.0 
 
 
 
 
 
 
 
 
 
 
Charges for plan to restructure operations
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
$ (6.4)
 
$ (6.4)
 
 
 
 
 
Segment Reporting Total Assets (Details) (USD $)
In Millions, unless otherwise specified
Jun. 30, 2015
Dec. 31, 2014
Segment Reporting Information [Line Items]
 
 
Total assets
$ 13,397.2 
$ 13,996.3 
Canada [Member]
 
 
Segment Reporting Information [Line Items]
 
 
Total assets
5,121.2 
5,537.2 
U.S. [Member]
 
 
Segment Reporting Information [Line Items]
 
 
Total assets
2,452.9 
2,388.6 
Europe [Member]
 
 
Segment Reporting Information [Line Items]
 
 
Total assets
5,412.4 
5,773.3 
MCI [Member]
 
 
Segment Reporting Information [Line Items]
 
 
Total assets
135.5 
75.2 
Corporate [Member]
 
 
Segment Reporting Information [Line Items]
 
 
Total assets
$ 275.2 
$ 222.0 
Investments Financials (Details) (USD $)
In Millions, unless otherwise specified
3 Months Ended 6 Months Ended
Jun. 30, 2015
Jun. 30, 2014
Jun. 30, 2015
Jun. 30, 2014
Dec. 31, 2014
Equity Method Investment, Summarized Financial Information, Liabilities and Equity [Abstract]
 
 
 
 
 
Total equity
$ 7,631.4 
 
$ 7,631.4 
 
$ 7,886.1 
MillerCoors
 
 
 
 
 
Condensed balance sheets
 
 
 
 
 
Current assets
923.4 
 
923.4 
 
795.3 
Noncurrent assets
9,005.9 
 
9,005.9 
 
9,047.4 
Total assets
9,929.3 
 
9,929.3 
 
9,842.7 
Current liabilities
1,086.1 
 
1,086.1 
 
1,061.3 
Noncurrent liabilities
1,496.3 
 
1,496.3 
 
1,578.8 
Total liabilities
2,582.4 
 
2,582.4 
 
2,640.1 
Noncontrolling interests
20.4 
 
20.4 
 
23.5 
Owners' equity
7,326.5 
 
7,326.5 
 
7,179.1 
Total liabilities and equity
9,929.3 
 
9,929.3 
 
9,842.7 
Equity Method Investment, Summarized Financial Information, Liabilities and Equity [Abstract]
 
 
 
 
 
Total equity
7,326.5 
 
7,326.5 
 
7,179.1 
MCBC economic interest
42.00% 
42.00% 
42.00% 
42.00% 
42.00% 
MCBC proportionate share of MillerCoors equity
3,077.1 
 
3,077.1 
 
3,015.2 
Difference between MCBC contributed cost basis and proportional share of the underlying equity in net assets of MillerCoors
(659.2)
 
(659.2)
 
(661.6)
Equity Method Investment, Difference From Accounting Policy Elections
35.0 
 
35.0 
 
35.0 
Investment in MillerCoors
2,452.9 
 
2,452.9 
 
2,388.6 
Results of operations
 
 
 
 
 
Net sales
2,202.7 
2,206.7 
3,977.3 
3,997.1 
 
Cost of goods sold
(1,240.5)
(1,282.4)
(2,316.7)
(2,376.5)
 
Gross profit
962.2 
924.3 
1,660.6 
1,620.6 
 
Operating income
493.4 
449.8 
802.7 
747.3 
 
Net income attributable to MillerCoors
$ 487.2 
$ 445.2 
$ 791.8 
$ 736.4 
 
Investments Proportional (Details) (USD $)
In Millions, unless otherwise specified
3 Months Ended 6 Months Ended
Jun. 30, 2015
Jun. 30, 2014
Jun. 30, 2015
Jun. 30, 2014
Dec. 31, 2014
Schedule of Equity Method Investments [Line Items]
 
 
 
 
 
Equity income in MillerCoors
$ 205.5 
$ 190.1 
$ 334.8 
$ 312.9 
 
MillerCoors
 
 
 
 
 
Schedule of Equity Method Investments [Line Items]
 
 
 
 
 
Net income attributable to MillerCoors
487.2 
445.2 
791.8 
736.4 
 
MCBC economic interest
42.00% 
42.00% 
42.00% 
42.00% 
42.00% 
MCBC proportionate share of MillerCoors net income
204.6 
187.0 
332.6 
309.3 
 
Amortization of the difference between MCBC contributed cost basis and proportional share of the underlying equity in the net assets of MillerCoors
1.3 
1.2 
2.4 
2.3 
 
Share-based compensation adjustment
(0.4)
1.9 
(0.2)
1.3 
 
Equity income in MillerCoors
$ 205.5 
$ 190.1 
$ 334.8 
$ 312.9 
 
Investments Transactions with MillerCoors (Details) (MillerCoors, USD $)
In Millions, unless otherwise specified
3 Months Ended 6 Months Ended
Jun. 30, 2015
Jun. 30, 2014
Jun. 30, 2015
Jun. 30, 2014
MillerCoors
 
 
 
 
Schedule of Equity Method Investments [Line Items]
 
 
 
 
Sales of beer to MillerCoors
$ 3.2 
$ 3.7 
$ 6.0 
$ 6.3 
Purchases of beer from MillerCoors
10.2 
9.1 
19.3 
16.2 
Service agreement and other charges to MillerCoors
0.7 
0.7 
1.3 
1.1 
Service agreement costs from MillerCoors
$ 0.2 
$ 0.3 
$ 0.6 
$ 0.5 
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, 2015
USD ($)
Jun. 30, 2014
USD ($)
Jun. 30, 2015
USD ($)
Jun. 30, 2014
USD ($)
Nov. 5, 2013
Modelo Molson Imports L P MMI [Member]
CAD ($)
Jun. 30, 2014
Modelo Molson Imports L P MMI [Member]
Jun. 30, 2014
Modelo Molson Imports L P MMI [Member]
USD ($)
Jun. 30, 2015
Modelo [Member]
USD ($)
Jun. 30, 2014
Modelo [Member]
USD ($)
Mar. 31, 2014
Modelo [Member]
USD ($)
Jun. 30, 2015
Modelo [Member]
USD ($)
Jun. 30, 2014
Modelo [Member]
USD ($)
Jun. 30, 2015
Canada [Member]
Licensing Agreements [Member]
USD ($)
Sep. 30, 2014
Canada [Member]
Licensing Agreements [Member]
USD ($)
Jun. 30, 2014
Canada [Member]
Licensing Agreements [Member]
USD ($)
Jun. 30, 2015
Canada [Member]
Licensing Agreements [Member]
USD ($)
Jun. 30, 2014
Canada [Member]
Licensing Agreements [Member]
USD ($)
Mar. 31, 2014
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% 
 
 
 
 
 
 
 
 
 
Termination fee income
 
 
 
 
 
 
 
$ 0 
$ 0 
$ 63.2 1
$ 0 
$ 63.2 
 
 
 
 
 
 
Gain on early termination of joint venture
 
 
 
 
70.0 
 
 
 
 
 
 
 
 
 
 
 
 
 
Amortization of Intangible Assets
5.9 
10.4 
13.7 
21.0 
 
 
 
 
 
 
 
 
0 
 
0 
0 
4.9 
 
Impairment of Intangible Assets, Finite-lived
 
 
 
 
 
 
 
 
 
 
 
 
 
8.9 
 
 
 
 
Finite-Lived Intangible Assets, Net
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
4.9 
Income (Loss) from Equity Method Investments
 
 
1.9 
2.7 
 
 
0.7 
 
 
 
 
 
 
 
 
 
 
 
Related Party Transaction, Selling, General and Administrative Expenses from Transactions with Related Party
 
 
 
 
 
 
$ 1.1 
 
 
 
 
 
 
 
 
 
 
 
Investments Variable Interest Entity (Details) (USD $)
In Millions, unless otherwise specified
Jun. 30, 2015
Dec. 31, 2014
Grolsch
 
 
Variable Interest Entity
 
 
Total Assets
$ 7.1 
$ 6.8 
Total Liabilities
2.1 
2.9 
Cobra
 
 
Variable Interest Entity
 
 
Total Assets
34.7 
31.0 
Total Liabilities
$ 0.8 
$ 0.8 
Investments Narrative (Details)
3 Months Ended
Jun. 30, 2015
VIE
Dec. 31, 2014
VIE
Jun. 30, 2014
USD ($)
Jun. 30, 2015
MillerCoors
USD ($)
Dec. 31, 2014
MillerCoors
USD ($)
Mar. 31, 2014
Canada [Member]
Licensing Agreements [Member]
USD ($)
Jun. 30, 2015
Brewers' Retail Inc. (BRI) [Member]
Jun. 30, 2015
Brewers' Retail Inc. (BRI) [Member]
Revolving credit facility [Member]
Canadian Imperial Bank of Commerce (CIBC) [Member]
CAD ($)
Schedule of Equity Method Investments [Line Items]
 
 
 
 
 
 
 
 
Equity Method Investments, Intercompany Transactions, Net Payables Due
 
 
 
$ (8,100,000)
$ (8,300,000)
 
 
 
Finite-Lived Intangible Assets, Net
 
 
 
 
 
4,900,000 
 
 
Number of Variable Interest Entities with Debt
0 
0 
 
 
 
 
 
 
Revolving credit facility, maximum borrowing capacity
 
 
$ 750,000,000 
 
 
 
 
$ 150,000,000 
Revolving credit facility, term
 
 
 
 
 
 
 
1 year 
Revolving credit facility, renewal option, term
 
 
 
 
 
 
 
1 year 
Guarantee obligation, percentage
 
 
 
 
 
 
50.00% 
 
Share-Based Payments Compensation Expense (Details) (Options and Sosars [Member], USD $)
In Millions, unless otherwise specified
3 Months Ended 6 Months Ended
Jun. 30, 2015
Jun. 30, 2014
Jun. 30, 2015
Jun. 30, 2014
Options and Sosars [Member]
 
 
 
 
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
 
 
 
 
Pre-tax compensation expense (in dollars)
$ 4.9 
$ 3.8 
$ 8.1 
$ 12.1 
Tax benefit (in dollars)
(1.3)
(1.2)
(2.1)
(3.9)
After-tax compensation expense (in dollars)
$ 3.6 
$ 2.6 
$ 6.0 
$ 8.2 
Share-Based Payments Non-vested (Details) (USD $)
In Millions, except Per Share data, unless otherwise specified
6 Months Ended 6 Months Ended
Jun. 30, 2015
Rsus and Dsus [Member]
Jun. 30, 2015
PUs [Member]
Dec. 31, 2014
PUs [Member]
Jun. 30, 2015
PSUs [Member]
Jun. 30, 2014
PSUs [Member]
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number of Shares [Roll Forward]
 
 
 
 
 
Non-vested awards outstanding at the beginning of the period (in shares)
0.7 
0.5 
 
0.4 
 
Granted (in shares)
0.2 
0 
 
0.1 
 
Vested (in shares)
(0.2)
(0.5)
 
0 
 
Forfeited (in shares)
(0.1)
0 
 
0 
 
Non-vested awards outstanding at the end of the period (in shares)
0.6 
0 
 
0.5 
 
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Intrinsic Value, Amount Per Share
 
$ 0.00 
$ 3.22 
$ 65.73 
 
Granted, weighted-average grant date fair value (in dollars per unit)
$ 70.83 
$ 0.00 
 
$ 74.42 
$ 58.69 
Forfeited, weighted-average grant date fair value (in dollars per unit)
$ 50.17 
$ 0.00 
 
$ 0.00 
 
Non-vested, weighted-average grant date fair value at the beginning of the period (in dollars per unit)
$ 47.75 
 
 
$ 50.49 
 
Vested, weighted-average grant date fair value (in dollars per unit)
$ 42.85 
$ 2.89 
 
$ 0.00 
 
Non-vested, weighted-average grant date fair value at the end of the period (in dollars per unit)
$ 55.59 
 
 
$ 57.05 
 
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
Jun. 30, 2015
Dec. 31, 2014
Options and Sosars [Member]
 
 
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding [Roll Forward]
 
 
Outstanding at the beginning of the period (in shares)
2.2 
 
Granted (in shares)
0.1 
 
Exercised (in shares)
(0.8)
 
Forfeited (in shares)
0 
 
Outstanding at the end of the period (in shares)
1.5 
2.2 
Exercisable (in shares)
1.2 
 
Weighted-average exercise price of shares outstanding, beginning of the period (in dollars per share)
$ 45.33 
 
Weighted-average exercise price of shares granted (in dollars per share)
$ 74.81 
 
Weighted-average exercise price of shares exercised (in dollars per share)
$ 44.85 
 
Weighted-average exercise price of shares forfeited (in dollars per share)
$ 0.00 
 
Weighted-average exercise price of shares outstanding, end of the period (in dollars per share)
$ 48.28 
$ 45.33 
Weighted-average exercise price of shares exercisable (in dollars per share)
$ 45.13 
 
Weighted-average remaining contractual life, outstanding (in years)
5 years 1 month 6 days 
5 years 
Weighted-average remaining contractual life, outstanding (in years)
5 years 1 month 6 days 
5 years 
Weighted-average remaining contractual life, exercisable (in years)
4 years 3 months 18 days 
 
Aggregate intrinsic value of shares outstanding (in dollars)
$ 64.6 
 
Aggregate intrinsic value of shares outstanding (in dollars)
32.8 
64.6 
Aggregate intrinsic value of shares exercisable (in dollars)
$ 30.8 
 
Share-Based Payments Weighted Average Assumptions (Details)
6 Months Ended
Jun. 30, 2015
Jun. 30, 2014
Options and Sosars [Member]
 
 
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
 
 
Risk-free interest rate (as a percent)
1.70% 
2.29% 
Dividend yield (as a percent)
2.20% 
2.57% 
Weighted-average volatility (as a percent)
23.71% 
25.59% 
Expected term
5 years 8 months 12 days 
7 years 6 months 
Weighted-average fair market value
$ 13.98 
$ 12.78 
Options and Sosars [Member] |
Minimum [Member]
 
 
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
 
 
Volatility rate (percent)
21.65% 
22.66% 
Options and Sosars [Member] |
Maximum [Member]
 
 
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
 
 
Volatility rate (percent)
29.90% 
26.57% 
PSUs [Member]
 
 
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
 
 
Risk-free interest rate (as a percent)
1.06% 
0.72% 
Dividend yield (as a percent)
2.20% 
2.57% 
Weighted-average volatility (as a percent)
21.53% 
21.72% 
Expected term
2 years 9 months 22 days 
2 years 9 months 26 days 
Weighted-average fair market value
$ 74.42 
$ 58.69 
PSUs [Member] |
Minimum [Member]
 
 
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
 
 
Volatility rate (percent)
12.73% 
12.45% 
PSUs [Member] |
Maximum [Member]
 
 
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
 
 
Volatility rate (percent)
62.28% 
72.41% 
Share-Based Payments Narrative (Details) (USD $)
In Millions, unless otherwise specified
6 Months Ended
Jun. 30, 2015
Jun. 30, 2014
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)
$ 39.5 
 
Weighted-average period over which compensation expense is expected to be recognized (in years)
2 years 2 months 12 days 
 
Proceeds from Stock Plans
28.6 
27.7 
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)
6.8 
 
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 
 
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
25.7 
15.0 
Proceeds from Stock Plans
28.6 
27.7 
Gross [Member] |
Options and Sosars [Member]
 
 
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
 
 
Tax Benefit from Stock Options Exercised
$ 7.6 
$ 3.2 
Special items Summary Special Items (Details)
In Millions, unless otherwise specified
3 Months Ended 6 Months Ended 0 Months Ended 3 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 3 Months Ended 6 Months Ended 3 Months Ended 6 Months Ended
Jun. 30, 2015
USD ($)
Jun. 30, 2014
USD ($)
Jun. 30, 2015
USD ($)
Jun. 30, 2014
USD ($)
Apr. 30, 2015
Heineken [Member]
GBP (£)
Jun. 30, 2015
Heineken [Member]
GBP (£)
Dec. 31, 2014
Heineken [Member]
GBP (£)
Jun. 30, 2015
Modelo [Member]
USD ($)
Jun. 30, 2014
Modelo [Member]
USD ($)
Mar. 31, 2014
Modelo [Member]
USD ($)
Jun. 30, 2015
Modelo [Member]
USD ($)
Jun. 30, 2014
Modelo [Member]
USD ($)
Jun. 30, 2015
Canada [Member]
USD ($)
Jun. 30, 2015
Canada [Member]
Licensing Agreements [Member]
USD ($)
Jun. 30, 2014
Canada [Member]
Licensing Agreements [Member]
USD ($)
Jun. 30, 2015
Canada [Member]
Licensing Agreements [Member]
USD ($)
Jun. 30, 2014
Canada [Member]
Licensing Agreements [Member]
USD ($)
Jun. 30, 2015
Canada [Member]
Restructuring [Member]
USD ($)
Jun. 30, 2014
Canada [Member]
Restructuring [Member]
USD ($)
Jun. 30, 2015
Canada [Member]
Restructuring [Member]
USD ($)
Jun. 30, 2014
Canada [Member]
Restructuring [Member]
USD ($)
Jun. 30, 2015
Canada [Member]
Asset Abandonment [Member]
USD ($)
Jun. 30, 2014
Canada [Member]
Asset Abandonment [Member]
USD ($)
Jun. 30, 2015
Canada [Member]
Asset Abandonment [Member]
USD ($)
Jun. 30, 2014
Canada [Member]
Asset Abandonment [Member]
USD ($)
Jun. 30, 2015
Europe [Member]
USD ($)
Jun. 30, 2014
Europe [Member]
USD ($)
Jun. 30, 2015
Europe [Member]
USD ($)
Jun. 30, 2015
Europe [Member]
GBP (£)
Jun. 30, 2014
Europe [Member]
USD ($)
Jun. 30, 2015
Europe [Member]
Heineken [Member]
USD ($)
Jun. 30, 2015
Europe [Member]
Heineken [Member]
USD ($)
Jun. 30, 2015
Europe [Member]
Restructuring [Member]
USD ($)
Jun. 30, 2014
Europe [Member]
Restructuring [Member]
USD ($)
Jun. 30, 2015
Europe [Member]
Restructuring [Member]
USD ($)
Jun. 30, 2014
Europe [Member]
Restructuring [Member]
USD ($)
Jun. 30, 2015
Europe [Member]
Asset Abandonment [Member]
USD ($)
Jun. 30, 2014
Europe [Member]
Asset Abandonment [Member]
USD ($)
Jun. 30, 2015
Europe [Member]
Asset Abandonment [Member]
USD ($)
Jun. 30, 2014
Europe [Member]
Asset Abandonment [Member]
USD ($)
Jun. 30, 2015
Europe [Member]
Flood loss [Member]
USD ($)
Jun. 30, 2014
Europe [Member]
Flood loss [Member]
USD ($)
Jun. 30, 2015
Europe [Member]
Flood loss [Member]
USD ($)
Jun. 30, 2014
Europe [Member]
Flood loss [Member]
USD ($)
Jun. 30, 2015
MCI [Member]
Restructuring [Member]
USD ($)
Jun. 30, 2014
MCI [Member]
Restructuring [Member]
USD ($)
Jun. 30, 2015
MCI [Member]
Restructuring [Member]
USD ($)
Jun. 30, 2014
MCI [Member]
Restructuring [Member]
USD ($)
Jun. 30, 2015
MCI [Member]
China Impairment [Member]
USD ($)
Jun. 30, 2014
MCI [Member]
China Impairment [Member]
USD ($)
Jun. 30, 2015
MCI [Member]
China Impairment [Member]
USD ($)
Jun. 30, 2014
MCI [Member]
China Impairment [Member]
USD ($)
Jun. 30, 2015
Corporate [Member]
Restructuring [Member]
USD ($)
Jun. 30, 2014
Corporate [Member]
Restructuring [Member]
USD ($)
Jun. 30, 2015
Corporate [Member]
Restructuring [Member]
USD ($)
Jun. 30, 2014
Corporate [Member]
Restructuring [Member]
USD ($)
Restructuring Cost and Reserve [Line Items]
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Special items
$ 33.7 
$ 2.7 
$ 42.3 
$ (49.8)
 
 
 
 
 
 
 
 
 
 
 
 
 
$ 0 
$ 0.1 
$ 0 
$ 5.4 
$ 8.2 
$ 0 
$ 8.2 
$ 0 
 
 
 
 
 
 
 
$ 0.2 
$ 0.5 
$ (1.0)
$ 1.0 
$ 9.3 
$ 0 
$ 21.1 
$ 0 
 
 
 
 
$ 3.2 
$ 0 
$ 3.2 
$ 0 
$ 3.2 
$ 0 
$ 3.2 
$ 0 
$ 0 
$ 0.3 
$ 0 
$ 0.3 
Intangible asset write-off
5.9 
10.4 
13.7 
21.0 
 
 
 
 
 
 
 
 
 
0 
0 
0 
4.9 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Unusual or Infrequent Item, Net of Insurance Proceeds
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
(0.4)
1.8 
(2.4)
1.8 
 
 
 
 
 
 
 
 
 
 
 
 
Termination fee (income) expense
 
 
 
 
 
 
 
0 
0 
(63.2)1
0 
(63.2)
 
 
 
 
 
 
 
 
 
 
 
 
 
10.0 
0 
10.0 
 
0 
(19.4)
(19.4)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Accelerated depreciation expense
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
8.0 
 
19.8 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Assets Disposed of by Method Other than Sale, in Period of Disposition, Gain (Loss) on Disposition
 
 
 
 
 
 
 
 
 
 
 
 
8.2 
 
 
 
 
 
 
 
 
 
 
 
 
1.3 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Restructuring, Settlement and Impairment Provisions - Gain
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
0.4 
 
2.4 
 
 
 
 
 
 
 
 
 
 
 
 
 
Proceeds from early contract termination
 
 
 
 
8.0 
13.0 
5.0 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Loss on contract termination
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
$ 29.4 
 
$ 29.4 
£ 19.0 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
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
Jun. 30, 2015
Jun. 30, 2014
Jun. 30, 2015
Jun. 30, 2014
Jun. 30, 2015
Gain on Sale of Nonoperating Asset [Member]
Jun. 30, 2014
Gain on Sale of Nonoperating Asset [Member]
Jun. 30, 2015
Gain on Sale of Nonoperating Asset [Member]
Jun. 30, 2014
Gain on Sale of Nonoperating Asset [Member]
Jun. 30, 2015
Other Foreign Exchange and Derivative Activity [Member]
Jun. 30, 2014
Other Foreign Exchange and Derivative Activity [Member]
Jun. 30, 2015
Other Foreign Exchange and Derivative Activity [Member]
Jun. 30, 2014
Other Foreign Exchange and Derivative Activity [Member]
Jun. 30, 2015
Other income (expense), net [Member]
Jun. 30, 2014
Other income (expense), net [Member]
Jun. 30, 2015
Other income (expense), net [Member]
Jun. 30, 2014
Other income (expense), net [Member]
May 3, 2012
Senior Notes [Member]
Other income and expense:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Other Nonoperating Income (Expense)
 
 
 
 
$ 3,300,000 
$ 0 
$ 3,300,000 
$ 0 
 
 
 
 
 
 
 
 
 
Debt instrument, face amount
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
1,900,000,000 
Other income (expense), net
$ 6,300,000 
$ 700,000 
$ 3,700,000 
$ 1,500,000 
 
 
 
 
$ 2,700,000 
$ 500,000 
$ 100,000 
$ 1,300,000 
$ 300,000 
$ 200,000 
$ 300,000 
$ 200,000 
 
Income Tax (Details) (USD $)
In Millions, unless otherwise specified
3 Months Ended 6 Months Ended
Jun. 30, 2015
Jun. 30, 2014
Jun. 30, 2015
Jun. 30, 2014
Operating Loss Carryforwards [Line Items]
 
 
 
 
Effective tax rate (as a percent)
20.00% 
11.00% 
19.00% 
8.00% 
Federal statutory income tax rate (percent)
 
 
35.00% 
 
Net discrete tax benefit
$ 0.2 
$ (12.2)
 
 
Out of period adjustment
 
8.7 
 
 
Bilateral Advanced Pricing Agreement (BAPA) [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, 2015
Jun. 30, 2014
Jun. 30, 2015
Jun. 30, 2014
Amounts attributable to MCBC
 
 
 
 
Net income (loss) from continuing operations
$ 229.3 
$ 290.7 
$ 308.5 
$ 456.0 
Income (loss) from discontinued operations, net of tax
(0.3)
0.2 
1.6 
(1.7)
Net income (loss) attributable to Molson Coors Brewing Company
$ 229.0 
$ 290.9 
$ 310.1 
$ 454.3 
Weighted average shares for basic EPS (in shares)
185.7 
184.8 
185.8 
184.5 
Effect of dilutive securities:
 
 
 
 
Weighted average shares for diluted EPS (in shares)
186.5 
185.9 
186.7 
185.7 
Basic net income (loss) per share:
 
 
 
 
Continuing operations attributable to MCBC (in dollars per share)
$ 1.23 
$ 1.57 
$ 1.66 
$ 2.47 
Discontinued operations attributable to MCBC (in dollars per share)
$ 0.00 
$ 0.00 
$ 0.01 
$ (0.01)
Basic net income (loss) attributable to Molson Coors Brewing Company per share
$ 1.23 
$ 1.57 
$ 1.67 
$ 2.46 
Diluted net income (loss) per share:
 
 
 
 
Continuing operations attributable to MCBC (in dollars per share)
$ 1.23 
$ 1.56 
$ 1.65 
$ 2.46 
Discontinued operations attributable to MCBC (in dollars per share)
$ 0.00 
$ 0.00 
$ 0.01 
$ (0.01)
Diluted net income (loss) attributable to Molson Coors Brewing Company per share
$ 1.23 
$ 1.56 
$ 1.66 
$ 2.45 
Dividends declared per share (in dollars per share)
$ 0.41 
$ 0.37 
$ 0.82 
$ 0.74 
RSU DSU PU PSU [Member]
 
 
 
 
Effect of dilutive securities:
 
 
 
 
Effect of dilutive securities of RSU's, DSU's, PU's, Options and SOSAR's
0.4 
0.4 
0.4 
0.6 
Options and Sosars [Member]
 
 
 
 
Effect of dilutive securities:
 
 
 
 
Effect of dilutive securities of RSU's, DSU's, PU's, Options and SOSAR's
0.4 
0.7 
0.5 
0.6 
Earnings per Share ("EPS") Antidilutive (Details) (RSUs, stock options and SOSARs)
In Millions, unless otherwise specified
3 Months Ended 6 Months Ended
Jun. 30, 2015
Jun. 30, 2014
Jun. 30, 2015
Jun. 30, 2014
RSUs, stock options and SOSARs
 
 
 
 
Anti-dilutive securities:
 
 
 
 
Antidilutive Securities
0.1 
0.1 
0.1 
0 
Earnings per Share ("EPS") Share Repurchase Program (Details) (USD $)
Share data in Millions, unless otherwise specified
3 Months Ended 48 Months Ended 1 Months Ended
Jun. 30, 2015
Dec. 31, 2018
Class A and Class B common stock [Member]
Feb. 28, 2015
Class A and Class B common stock [Member]
May 7, 2015
Class B common stock [Member]
Jul. 31, 2015
Class B common stock [Member]
Subsequent Event [Member]
Accelerated Share Repurchases [Line Items]
 
 
 
 
 
Stock repurchase program, amount authorized
 
 
$ 1,000,000,000 
 
 
Stock Repurchase Program, Period in Force
 
4 years 
 
 
 
Treasury Stock, Shares, Acquired
0.7 
 
 
 
 
Stock repurchased during period, amount
 
 
 
$ 50,000,000 
$ 50,000,000 
Goodwill (Details) (USD $)
In Millions, unless otherwise specified
6 Months Ended
Jun. 30, 2015
Dec. 31, 2014
Goodwill [Line Items]
 
 
Goodwill, Acquired During Period
$ 11.6 
 
Goodwill activity:
 
 
Balance at beginning of year
2,191.6 
 
Foreign currency translation
(87.9)
 
Balance at end of year
2,115.3 
 
Intangible Assets Gross, Excluding Goodwill
5,727.9 
6,115.4 
Canada [Member]
 
 
Goodwill [Line Items]
 
 
Goodwill, Acquired During Period
0 
 
Percentage Of Fair Value Exceeding Carrying Value
 
11.00% 
Goodwill activity:
 
 
Balance at beginning of year
656.5 
 
Foreign currency translation
(45.8)
 
Balance at end of year
610.7 
 
Europe [Member]
 
 
Goodwill [Line Items]
 
 
Goodwill, Acquired During Period
0 
 
Percentage Of Fair Value Exceeding Carrying Value
 
14.00% 
Goodwill activity:
 
 
Balance at beginning of year
1,528.0 
 
Foreign currency translation
(41.8)
 
Balance at end of year
1,486.2 
 
MCI [Member]
 
 
Goodwill [Line Items]
 
 
Goodwill, Acquired During Period
11.6 
 
Goodwill activity:
 
 
Balance at beginning of year
7.1 
 
Foreign currency translation
(0.3)
 
Balance at end of year
$ 18.4 
 
Goodwill and Intangible Assets Intangible Assets (Details)
3 Months Ended 6 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 12 Months Ended 0 Months Ended
Jun. 30, 2015
USD ($)
Jun. 30, 2014
USD ($)
Jun. 30, 2015
USD ($)
Jun. 30, 2014
USD ($)
Dec. 31, 2014
USD ($)
Jun. 30, 2015
Brands [Member]
USD ($)
Dec. 31, 2014
Brands [Member]
USD ($)
Jun. 30, 2015
Brands [Member]
Minimum [Member]
Dec. 31, 2014
Brands [Member]
Minimum [Member]
Jun. 30, 2015
Brands [Member]
Maximum [Member]
Dec. 31, 2014
Brands [Member]
Maximum [Member]
Jun. 30, 2015
Distribution Rights [Member]
USD ($)
Dec. 31, 2014
Distribution Rights [Member]
USD ($)
Jun. 30, 2015
Distribution Rights [Member]
Minimum [Member]
Dec. 31, 2014
Distribution Rights [Member]
Minimum [Member]
Jun. 30, 2015
Distribution Rights [Member]
Maximum [Member]
Dec. 31, 2014
Distribution Rights [Member]
Maximum [Member]
Jun. 30, 2015
Other Intangible Assets [Member]
USD ($)
Dec. 31, 2014
Other Intangible Assets [Member]
USD ($)
Jun. 30, 2015
Other Intangible Assets [Member]
Minimum [Member]
Dec. 31, 2014
Other Intangible Assets [Member]
Minimum [Member]
Jun. 30, 2015
Other Intangible Assets [Member]
Maximum [Member]
Dec. 31, 2014
Other Intangible Assets [Member]
Maximum [Member]
Jun. 30, 2015
Distribution Networks [Member]
USD ($)
Dec. 31, 2014
Distribution Networks [Member]
USD ($)
Apr. 30, 2015
Ontario, Canada [Member]
Subsequent Event [Member]
brewer
Dec. 31, 2014
Canada [Member]
Jun. 30, 2015
Canada [Member]
Licensing Agreements [Member]
USD ($)
Sep. 30, 2014
Canada [Member]
Licensing Agreements [Member]
USD ($)
Jun. 30, 2014
Canada [Member]
Licensing Agreements [Member]
USD ($)
Jun. 30, 2015
Canada [Member]
Licensing Agreements [Member]
USD ($)
Jun. 30, 2014
Canada [Member]
Licensing Agreements [Member]
USD ($)
Mar. 31, 2014
Canada [Member]
Licensing Agreements [Member]
USD ($)
Dec. 31, 2014
Europe [Member]
Dec. 31, 2014
Europe [Member]
Brand Impairment [Member]
USD ($)
Dec. 31, 2013
Europe [Member]
Brand Impairment [Member]
USD ($)
Apr. 30, 2015
Brewer's Retail Inc. (BRI) [Member]
Canada [Member]
Subsequent Event [Member]
CAD ($)
Apr. 30, 2015
Brewer's Retail Inc. (BRI) [Member]
Canada [Member]
Subsequent Event [Member]
CAD ($)
Apr. 30, 2015
Enhancement of Purchasing Experience [Member]
Brewer's Retail Inc. (BRI) [Member]
Canada [Member]
Subsequent Event [Member]
Details of intangible assets, other than goodwill:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Amortization of Intangible Assets
$ 5,900,000 
$ 10,400,000 
$ 13,700,000 
$ 21,000,000 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
$ 0 
 
$ 0 
$ 0 
$ 4,900,000 
 
 
 
 
 
 
 
Impairment of Intangible Assets, Finite-lived
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
8,900,000 
 
 
 
 
 
 
 
 
 
 
Sales tax, annual charge
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
100,000,000 
 
 
Sales Tax Agreement, Term
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
4 years 
 
 
Number of largest brewers
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
2 
 
 
 
 
 
 
 
 
 
 
 
 
 
Long-term commitment to invest
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
100,000,000 
 
Long-term commitment to invest, term
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
4 years 
 
 
Long-term commitment to invest (percent)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
80.00% 
Restructuring charges
33,700,000 
2,700,000 
42,300,000 
(49,800,000)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
360,000,000 
150,900,000 
 
 
 
Percentage Of Fair Value Exceeding Carrying Value
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
11.00% 
 
 
 
 
 
 
14.00% 
 
 
 
 
 
Intangible assets subject to amortization:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Finite-Lived Intangible Assets, Gross
 
 
 
 
 
467,900,000 
483,500,000 
 
 
 
 
105,500,000 
122,000,000 
 
 
 
 
31,900,000 
31,700,000 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Total Gross
5,727,900,000 
 
5,727,900,000 
 
6,115,400,000 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Accumulated amortization
(354,600,000)
 
(354,600,000)
 
(359,600,000)
(230,500,000)
(229,100,000)
 
 
 
 
(94,000,000)
(101,100,000)
 
 
 
 
(30,100,000)
(29,400,000)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Net
 
 
 
 
 
237,400,000 
254,400,000 
 
 
 
 
11,500,000 
20,900,000 
 
 
 
 
1,800,000 
2,300,000 
 
 
 
 
 
 
 
 
 
 
 
 
 
4,900,000 
 
 
 
 
 
 
Total Net
5,373,300,000 
 
5,373,300,000 
 
5,755,800,000 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Indefinite-lived intangible assets
 
 
 
 
 
$ 4,295,400,000 
$ 4,590,200,000 
 
 
 
 
 
 
 
 
 
 
$ 17,500,000 
$ 17,500,000 
 
 
 
 
$ 809,700,000 
$ 870,500,000 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Useful life - minimum (in years)
 
 
 
 
 
 
 
3 years 
3 years 
40 years 
40 years 
 
 
3 years 
3 years 
28 years 
28 years 
 
 
2 years 
2 years 
8 years 
8 years 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Goodwill and Intangible Assets Amortization Expense (Details) (USD $)
In Millions, unless otherwise specified
3 Months Ended 6 Months Ended 3 Months Ended 6 Months Ended
Jun. 30, 2015
event
Jun. 30, 2014
Jun. 30, 2015
Jun. 30, 2014
Dec. 31, 2014
Jun. 30, 2015
Canada [Member]
Dec. 31, 2014
Canada [Member]
Jun. 30, 2015
Canada [Member]
Licensing Agreements [Member]
Jun. 30, 2014
Canada [Member]
Licensing Agreements [Member]
Jun. 30, 2015
Canada [Member]
Licensing Agreements [Member]
Jun. 30, 2014
Canada [Member]
Licensing Agreements [Member]
Mar. 31, 2014
Canada [Member]
Licensing Agreements [Member]
Jun. 30, 2015
Brands [Member]
Dec. 31, 2014
Brands [Member]
Jun. 30, 2015
Molson Core Brands [Member]
Jun. 30, 2015
Jelen Ozujsko Branik [Member] [Member]
Goodwill [Line Items]
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Amortization expense of intangible assets
$ 5.9 
$ 10.4 
$ 13.7 
$ 21.0 
 
 
 
$ 0 
$ 0 
$ 0 
$ 4.9 
 
 
 
 
 
Percentage Of Fair Value Exceeding Carrying Value
 
 
 
 
 
 
11.00% 
 
 
 
 
 
 
 
9.00% 
 
Goodwill
2,115.3 
 
2,115.3 
 
2,191.6 
610.7 
656.5 
 
 
 
 
 
 
 
 
 
Indefinite-lived intangible assets
 
 
 
 
 
 
 
 
 
 
 
 
4,295.4 
4,590.2 
2,429.9 
758.9 
Number of events triggering potential impairment
0 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Finite-Lived Intangible Assets, Net
 
 
 
 
 
 
 
 
 
 
 
$ 4.9 
$ 237.4 
$ 254.4 
 
 
Debt Schedule (Details)
6 Months Ended 4 Months Ended 7 Months Ended 13 Months Ended
Jun. 30, 2015
USD ($)
Dec. 31, 2014
USD ($)
Jun. 30, 2014
USD ($)
Jun. 30, 2015
Central Europe [Member]
USD ($)
Dec. 31, 2014
Central Europe [Member]
USD ($)
Jun. 30, 2015
Cross currency swaps [Member]
USD ($)
Jun. 30, 2015
Cross currency swaps [Member]
EUR (€)
Jun. 30, 2015
Credit facilities [Member]
Japanese Yen [Member]
USD ($)
Dec. 31, 2014
Credit facilities [Member]
Japanese Yen [Member]
USD ($)
Jun. 30, 2015
Commercial paper [Member]
May 3, 2012
Senior Notes [Member]
USD ($)
Jun. 30, 2015
Senior Notes [Member]
Canadian dollar (CAD) 900 million 5.0% notes due 2015 [Member]
USD ($)
Dec. 31, 2014
Senior Notes [Member]
Canadian dollar (CAD) 900 million 5.0% notes due 2015 [Member]
USD ($)
Sep. 22, 2005
Senior Notes [Member]
Canadian dollar (CAD) 900 million 5.0% notes due 2015 [Member]
USD ($)
Jun. 30, 2015
Senior Notes [Member]
CAD 500 million 3.95% Series A notes due 2017 [Member]
USD ($)
Dec. 31, 2014
Senior Notes [Member]
CAD 500 million 3.95% Series A notes due 2017 [Member]
USD ($)
Oct. 6, 2010
Senior Notes [Member]
CAD 500 million 3.95% Series A notes due 2017 [Member]
USD ($)
Jun. 30, 2015
Senior Notes [Member]
$300 million 2.0% notes due 2017 [Member]
USD ($)
Dec. 31, 2014
Senior Notes [Member]
$300 million 2.0% notes due 2017 [Member]
USD ($)
May 3, 2012
Senior Notes [Member]
$300 million 2.0% notes due 2017 [Member]
USD ($)
Dec. 31, 2014
Senior Notes [Member]
$500 million 3.5% notes due 2022 [Member]
USD ($)
Jun. 30, 2015
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, 2015
Senior Notes [Member]
$1.1 billion 5.0% notes due 2042 [Member]
USD ($)
Dec. 31, 2014
Senior Notes [Member]
$1.1 billion 5.0% notes due 2042 [Member]
USD ($)
May 3, 2012
Senior Notes [Member]
$1.1 billion 5.0% notes due 2042 [Member]
USD ($)
Jun. 30, 2015
Credit facilities [Member]
Revolving Multicurrency Bank Credit Facility [Member]
USD ($)
Jun. 30, 2015
Quarter To Date [Member]
Senior Notes [Member]
$300 million 2.0% notes due 2017 [Member]
Jun. 30, 2015
Quarter To Date [Member]
Senior Notes [Member]
$500 million 3.5% notes due 2022 [Member]
Jun. 30, 2014
Quarter To Date [Member]
Senior Notes [Member]
$500 million 3.5% notes due 2022 [Member]
Jun. 30, 2015
Year To Date [Member]
Senior Notes [Member]
$300 million 2.0% notes due 2017 [Member]
Jun. 30, 2015
Year To Date [Member]
Senior Notes [Member]
$500 million 3.5% notes due 2022 [Member]
Jun. 30, 2014
Year To Date [Member]
Senior Notes [Member]
$500 million 3.5% notes due 2022 [Member]
Debt Instrument [Line Items]
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Long-term debt, carrying amount
 
 
 
 
 
 
 
 
 
 
 
$ 720,300,000 
$ 774,500,000 
 
$ 400,200,000 
$ 430,300,000 
 
$ 300,500,000 
$ 300,000,000 
$ 300,000,000 
$ 510,800,000 
$ 508,200,000 
$ 500,000,000 
$ 1,100,000,000 
$ 1,100,000,000 
 
 
 
 
 
 
 
 
Debt instrument, face amount
 
 
 
 
 
 
 
 
 
 
1,900,000,000 
 
 
900,000,000 
 
 
500,000,000 
 
 
300,000,000 
 
 
500,000,000 
 
 
1,100,000,000.0 
 
 
 
 
 
 
 
Debt instrument, interest rate percentage
 
 
 
 
 
 
 
 
 
 
 
 
 
5.00% 
 
 
3.95% 
 
 
2.00% 
 
 
3.50% 
 
 
5.00% 
 
 
 
 
 
 
 
Less: unamortized debt discounts
(3,800,000)
(4,200,000)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Total long-term debt (including current portion)
3,025,400,000 
3,111,400,000 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Current portion of long-term debt
(720,200,000)
(774,300,000)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Total long-term debt
2,305,200,000 
2,337,100,000 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Commercial paper program
65,000,000 
0 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Overdraft facility
23,400,000 
64,600,000 
 
23,400,000 
64,600,000 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Short-term facilities
 
 
 
 
 
 
 
5,700,000 
4,900,000 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Other short-term borrowings
18,100,000 
5,600,000 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Current portion of long-term debt and short-term borrowings
832,400,000 
849,400,000 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Debt instrument, fair value adjustment
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
(500,000)
 
 
10,800,000 
8,200,000 
 
 
 
 
 
 
 
 
 
 
 
Derivative, notional amount
 
 
 
 
 
300,000,000 
265,000,000 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Debt instrument, effective interest rate (percent)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
2.72% 
1.41% 
3.31% 
1.84% 
1.37% 
3.40% 
Revolving credit facility, remaining borrowing capacity
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
685,000,000 
 
 
 
 
 
 
Revolving credit facility, maximum borrowing capacity
 
 
750,000,000 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Short-term debt, weighted average interest rate
 
 
 
 
 
 
 
 
 
0.49% 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Weighted average interest rate, term
 
 
 
 
 
 
 
 
 
773 hours 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Bank cash
 
 
 
44,000,000 
80,000,000 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Bank cash, net of overdrafts
 
 
 
$ 20,600,000 
$ 15,400,000 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Debt Fair Value Measurements (Details) (USD $)
In Millions, unless otherwise specified
Jun. 30, 2015
Dec. 31, 2014
Debt Disclosure [Abstract]
 
 
Long-term debt, fair value
$ 3,032.4 
$ 3,240.6 
Accumulated Other Comprehensive Income (Loss) Table 1 (Details) (USD $)
In Millions, unless otherwise specified
6 Months Ended
Jun. 30, 2015
Accumulated Other Comprehensive Income (Loss) [Roll Forward]
 
As of December 31, 2014
$ (898.4)
Foreign currency translation adjustments
(393.5)
Unrealized gain (loss) on derivative instruments
10.7 
Reclassification of derivative (gain) loss to income
(4.2)
Pension and other postretirement benefit adjustments
(2.2)
Amortization of net prior service (benefit) cost and net actuarial (gain) loss to income
23.3 
Other Comprehensive Income (Loss), Ownership Share of Unconsolidated Subsidiaries
(0.5)
Tax benefit (expense)
(36.4)
As of June 30, 2015
(1,301.2)
Foreign currency translation adjustments
 
Accumulated Other Comprehensive Income (Loss) [Roll Forward]
 
As of December 31, 2014
129.8 
Foreign currency translation adjustments
(393.5)
Unrealized gain (loss) on derivative instruments
0 
Reclassification of derivative (gain) loss to income
0 
Amortization of net prior service (benefit) cost and net actuarial (gain) loss to income
0 
Other Comprehensive Income (Loss), Ownership Share of Unconsolidated Subsidiaries
0 
Tax benefit (expense)
(31.1)
As of June 30, 2015
(294.8)
Gain (loss) on derivative instruments
 
Accumulated Other Comprehensive Income (Loss) [Roll Forward]
 
As of December 31, 2014
15.0 
Foreign currency translation adjustments
0 
Unrealized gain (loss) on derivative instruments
10.7 
Reclassification of derivative (gain) loss to income
(4.2)
Amortization of net prior service (benefit) cost and net actuarial (gain) loss to income
0 
Other Comprehensive Income (Loss), Ownership Share of Unconsolidated Subsidiaries
0 
Tax benefit (expense)
(0.9)
As of June 30, 2015
20.6 
Pension and postretirement benefit adjustments
 
Accumulated Other Comprehensive Income (Loss) [Roll Forward]
 
As of December 31, 2014
(658.5)
Foreign currency translation adjustments
0 
Unrealized gain (loss) on derivative instruments
0 
Reclassification of derivative (gain) loss to income
0 
Pension and other postretirement benefit adjustments
(2.2)
Amortization of net prior service (benefit) cost and net actuarial (gain) loss to income
23.3 
Other Comprehensive Income (Loss), Ownership Share of Unconsolidated Subsidiaries
0 
Tax benefit (expense)
(4.6)
As of June 30, 2015
(642.0)
Equity method investments
 
Accumulated Other Comprehensive Income (Loss) [Roll Forward]
 
As of December 31, 2014
(384.7)
Foreign currency translation adjustments
0 
Unrealized gain (loss) on derivative instruments
0 
Reclassification of derivative (gain) loss to income
0 
Amortization of net prior service (benefit) cost and net actuarial (gain) loss to income
0 
Other Comprehensive Income (Loss), Ownership Share of Unconsolidated Subsidiaries
(0.5)
Tax benefit (expense)
0.2 
As of June 30, 2015
$ (385.0)
Accumulated Other Comprehensive Income (Loss) Table 2 (Details) (USD $)
In Millions, unless otherwise specified
3 Months Ended 6 Months Ended
Jun. 30, 2015
Jun. 30, 2014
Jun. 30, 2015
Jun. 30, 2014
Foreign currency forwards and commodity swaps
$ 579.9 
$ 683.3 
$ 1,034.7 
$ 1,206.5 
Total income (loss) reclassified, before tax
231.6 
292.9 
312.3 
457.7 
Income tax benefit (expense)
(58.4)
(36.4)
(71.2)
(41.2)
Reclassification out of Accumulated Other Comprehensive Income [Member]
 
 
 
 
Net income (loss) reclassified, net of tax
(7.7)
(5.4)
(15.3)
(9.8)
Reclassification out of Accumulated Other Comprehensive Income [Member] |
Gain/(loss) on cash flow hedges [Member]
 
 
 
 
Total income (loss) reclassified, before tax
2.2 
3.5 
4.2 
8.2 
Income tax benefit (expense)
(0.6)
(1.1)
(1.2)
(2.6)
Net income (loss) reclassified, net of tax
1.6 
2.4 
3.0 
5.6 
Reclassification out of Accumulated Other Comprehensive Income [Member] |
Gain/(loss) on cash flow hedges [Member] |
Other income (expense), net [Member]
 
 
 
 
Foreign currency forwards, other
(2.9)
0.7 
(5.3)
2.3 
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
5.4 
3.0 
10.1 
6.3 
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
(0.3)
(0.4)
(0.6)
(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 
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)
(0.1)
0.5 
(0.2)
1.1 
Net actuarial gain (loss)
(11.9)
(9.0)
(23.1)
(17.9)
Total income (loss) reclassified, before tax
(12.0)
(8.5)
(23.3)
(16.8)
Income tax benefit (expense)
2.7 
0.7 
5.0 
1.4 
Net income (loss) reclassified, net of tax
$ (9.3)
$ (7.8)
$ (18.3)
$ (15.4)
Derivative Instruments and Hedging Activities Narrative (Details)
12 Months Ended 36 Months Ended 3 Months Ended 6 Months Ended 3 Months Ended 6 Months Ended 4 Months Ended 7 Months Ended 13 Months Ended 3 Months Ended 6 Months Ended 3 Months Ended 6 Months Ended
Jun. 30, 2016
Forecast
USD ($)
M
Jun. 30, 2018
Forecast
Jun. 30, 2015
Fair Value Hedging [Member]
USD ($)
Jun. 30, 2014
Fair Value Hedging [Member]
USD ($)
Jun. 30, 2015
Fair Value Hedging [Member]
USD ($)
Jun. 30, 2014
Fair Value Hedging [Member]
USD ($)
Jun. 30, 2015
Fair Value Hedging [Member]
Interest rate swaps [Member]
Interest expense, net [Member]
USD ($)
Jun. 30, 2014
Fair Value Hedging [Member]
Interest rate swaps [Member]
Interest expense, net [Member]
USD ($)
Jun. 30, 2015
Fair Value Hedging [Member]
Interest rate swaps [Member]
Interest expense, net [Member]
USD ($)
Jun. 30, 2014
Fair Value Hedging [Member]
Interest rate swaps [Member]
Interest expense, net [Member]
USD ($)
May 3, 2012
Senior Notes [Member]
USD ($)
Jun. 30, 2015
$300 million 2.0% notes due 2017 [Member]
Senior Notes [Member]
USD ($)
Dec. 31, 2014
$300 million 2.0% notes due 2017 [Member]
Senior Notes [Member]
USD ($)
May 3, 2012
$300 million 2.0% notes due 2017 [Member]
Senior Notes [Member]
USD ($)
May 3, 2012
$300M USD Interest Rate Swaps [Member]
Senior Notes [Member]
Dec. 31, 2014
$500 million 3.5% notes due 2022 [Member]
Senior Notes [Member]
USD ($)
Jun. 30, 2015
$500 million 3.5% notes due 2022 [Member]
Senior Notes [Member]
USD ($)
May 3, 2012
$500 million 3.5% notes due 2022 [Member]
Senior Notes [Member]
USD ($)
Jun. 30, 2015
$300M USD Interest Rate Swaps [Member]
USD ($)
Jun. 30, 2015
$300M USD Interest Rate Swaps [Member]
Fair Value Hedging [Member]
Interest rate swaps [Member]
Interest expense, net [Member]
USD ($)
Jun. 30, 2015
$300M USD Interest Rate Swaps [Member]
Fair Value Hedging [Member]
Interest rate swaps [Member]
Interest expense, net [Member]
USD ($)
Jun. 30, 2015
$500M USD Interest Rate Swaps [Member] [Member]
USD ($)
Jun. 30, 2015
$500M USD Interest Rate Swaps [Member] [Member]
Fair Value Hedging [Member]
Interest rate swaps [Member]
Interest expense, net [Member]
USD ($)
Jun. 30, 2015
$500M USD Interest Rate Swaps [Member] [Member]
Fair Value Hedging [Member]
Interest rate swaps [Member]
Interest expense, net [Member]
USD ($)
Jun. 30, 2015
Cross currency swaps [Member]
USD ($)
Jun. 30, 2015
Cross currency swaps [Member]
EUR (€)
Jun. 30, 2015
Forward starting interest rate swap [Member]
CAD ($)
Schedule of Trading Securities and Other Trading Assets
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Derivative, notional amount
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
$ 300,000,000 
 
 
$ 500,000,000 
 
 
$ 300,000,000 
€ 265,000,000 
$ 560,000,000 
Change in Unrealized Gain (Loss) on Hedged Item in Fair Value Hedge
 
 
(11,100,000)
1,200,000 
(2,100,000)
1,200,000 
(11,100,000)
1,200,000 
(2,100,000)
1,200,000 
 
 
 
 
 
 
 
 
 
(100,000)
500,000 
 
(11,000,000)
(2,600,000)
 
 
 
Long-term debt, carrying amount
 
 
 
 
 
 
 
 
 
 
 
300,500,000 
300,000,000 
300,000,000 
 
510,800,000 
508,200,000 
500,000,000 
 
 
 
 
 
 
 
 
 
Debt instrument, interest rate percentage
 
 
 
 
 
 
 
 
 
 
 
 
 
2.00% 
2.00% 
 
 
3.50% 
 
 
 
 
 
 
 
 
 
Debt instrument, fair value adjustment
 
 
 
 
 
 
 
 
 
 
 
500,000 
 
 
 
(10,800,000)
(8,200,000)
 
 
 
 
 
 
 
 
 
 
Debt instrument, face amount
 
 
 
 
 
 
 
 
 
 
1,900,000,000 
 
 
300,000,000 
 
 
 
500,000,000 
 
 
 
 
 
 
 
 
 
Derivative, notional, fixed interest rate
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
2.61% 
Unrealized Gain (Loss) on Interest Rate Cash Flow Hedges, Pretax, Accumulated Other Comprehensive Income (Loss)
$ 23,000,000 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Term for Expected Losses Recorded in Accumulated Other Comprehensive Income
12 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Maximum Length of Time Hedged in Cash Flow Hedge
 
3 years 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Derivative Instruments and Hedging Activities Derivative Fair Value (Details) (Fair Value, Measurements, Recurring [Member], USD $)
In Millions, unless otherwise specified
Jun. 30, 2015
Dec. 31, 2014
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 Asset, Fair Value, Gross Asset
0 
 
Fair Value, Inputs, Level 1 [Member] |
Interest rate swaps [Member]
 
 
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
 
 
Derivative Liability, Fair Value, Gross Liability
0 
0 
Fair Value, Inputs, Level 1 [Member] |
Foreign currency forwards [Member]
 
 
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
 
 
Derivative Asset, Fair Value, Gross Asset
0 
0 
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
0 
0 
Fair Value, Inputs, Level 2 [Member]
 
 
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
 
 
Derivative, Fair Value, Net
18.8 
20.5 
Fair Value, Inputs, Level 2 [Member] |
Cross currency swaps [Member]
 
 
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
 
 
Derivative Asset, Fair Value, Gross Asset
3.7 
 
Fair Value, Inputs, Level 2 [Member] |
Interest rate swaps [Member]
 
 
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
 
 
Derivative Liability, Fair Value, Gross Liability
(7.8)
(2.2)
Fair Value, Inputs, Level 2 [Member] |
Foreign currency forwards [Member]
 
 
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
 
 
Derivative Asset, Fair Value, Gross Asset
36.0 
31.6 
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
(13.1)
(8.9)
Significant unobservable inputs (Level 3) [Member]
 
 
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
 
 
Derivative, Fair Value, Net
0 
0 
Significant unobservable inputs (Level 3) [Member] |
Cross currency swaps [Member]
 
 
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
 
 
Derivative Asset, Fair Value, Gross Asset
0 
 
Significant unobservable inputs (Level 3) [Member] |
Interest rate swaps [Member]
 
 
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
 
 
Derivative Liability, Fair Value, Gross Liability
0 
0 
Significant unobservable inputs (Level 3) [Member] |
Foreign currency forwards [Member]
 
 
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
 
 
Derivative Asset, Fair Value, Gross Asset
0 
0 
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
0 
0 
Reported Value Measurement [Member]
 
 
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
 
 
Derivative, Fair Value, Net
18.8 
20.5 
Reported Value Measurement [Member] |
Cross currency swaps [Member]
 
 
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
 
 
Derivative Asset, Fair Value, Gross Asset
3.7 
 
Reported Value Measurement [Member] |
Interest rate swaps [Member]
 
 
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
 
 
Derivative Liability, Fair Value, Gross Liability
(7.8)
(2.2)
Reported Value Measurement [Member] |
Foreign currency forwards [Member]
 
 
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
 
 
Derivative Asset, Fair Value, Gross Asset
36.0 
31.6 
Reported 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
$ (13.1)
$ (8.9)
Derivative Instruments and Hedging Activities Fair Value Balance Sheet (Details) (USD $)
In Millions, unless otherwise specified
Jun. 30, 2015
Dec. 31, 2014
Designated as Hedging Instrument [Member]
 
 
Derivatives designated as hedging instruments:
 
 
Derivative asset, fair value, designated as hedging instrument
$ 51.1 
$ 42.4 
Derivative liability, fair value, designated as hedging instrument
(19.2)
(13.0)
Designated as Hedging Instrument [Member] |
Cross currency swaps [Member]
 
 
Derivatives designated as hedging instruments:
 
 
Derivative, notional amount
295.5 
 
Designated as Hedging Instrument [Member] |
Cross currency swaps [Member] |
Other non-current assets [Member]
 
 
Derivatives designated as hedging instruments:
 
 
Derivative asset, fair value, designated as hedging instrument
3.7 
 
Designated as Hedging Instrument [Member] |
Cross currency swaps [Member] |
Other liabilities [Member]
 
 
Derivatives designated as hedging instruments:
 
 
Derivative liability, fair value, designated as hedging instrument
0 
 
Designated as Hedging Instrument [Member] |
Interest rate swaps [Member]
 
 
Derivatives designated as hedging instruments:
 
 
Derivative, notional amount
1,248.2 
844.2 
Designated as Hedging Instrument [Member] |
Interest rate swaps [Member] |
Other current assets [Member]
 
 
Derivatives designated as hedging instruments:
 
 
Derivative asset, fair value, designated as hedging instrument
1.8 
0 
Designated as Hedging Instrument [Member] |
Interest rate swaps [Member] |
Other non-current assets [Member]
 
 
Derivatives designated as hedging instruments:
 
 
Derivative asset, fair value, designated as hedging instrument
8.7 
10.8 
Designated as Hedging Instrument [Member] |
Interest rate swaps [Member] |
Accounts payable and other current liabilities [Member]
 
 
Derivatives designated as hedging instruments:
 
 
Derivative liability, fair value, designated as hedging instrument
(18.3)
(13.0)
Designated as Hedging Instrument [Member] |
Interest rate swaps [Member] |
Other liabilities [Member]
 
 
Derivatives designated as hedging instruments:
 
 
Derivative liability, fair value, designated as hedging instrument
0 
0 
Designated as Hedging Instrument [Member] |
Foreign currency forwards [Member]
 
 
Derivatives designated as hedging instruments:
 
 
Derivative, notional amount
340.0 
343.4 
Designated as Hedging Instrument [Member] |
Foreign currency forwards [Member] |
Other current assets [Member]
 
 
Derivatives designated as hedging instruments:
 
 
Derivative asset, fair value, designated as hedging instrument
23.9 
19.5 
Designated as Hedging Instrument [Member] |
Foreign currency forwards [Member] |
Other non-current assets [Member]
 
 
Derivatives designated as hedging instruments:
 
 
Derivative asset, fair value, designated as hedging instrument
13.0 
12.1 
Designated as Hedging Instrument [Member] |
Foreign currency forwards [Member] |
Accounts payable and other current liabilities [Member]
 
 
Derivatives designated as hedging instruments:
 
 
Derivative liability, fair value, designated as hedging instrument
(0.1)
0 
Designated as Hedging Instrument [Member] |
Foreign currency forwards [Member] |
Other liabilities [Member]
 
 
Derivatives designated as hedging instruments:
 
 
Derivative liability, fair value, designated as hedging instrument
(0.8)
0 
Not Designated as Hedging Instrument [Member]
 
 
Derivatives not designated as hedging instruments:
 
 
Derivative Instruments Not Designated as Hedging Instruments, Asset, at Fair Value
0.8 
0.6 
Derivative Instruments Not Designated as Hedging Instruments, Liability, at Fair Value
(13.9)
(9.5)
Not Designated as Hedging Instrument [Member] |
Foreign currency forwards [Member]
 
 
Derivatives designated as hedging instruments:
 
 
Derivative, notional amount
   
 
Not Designated as Hedging Instrument [Member] |
Foreign currency forwards [Member] |
Other current assets [Member]
 
 
Derivatives designated as hedging instruments:
 
 
Derivative asset, fair value, designated as hedging instrument
   
 
Not Designated as Hedging Instrument [Member] |
Foreign currency forwards [Member] |
Accounts payable and other current liabilities [Member]
 
 
Derivatives designated as hedging instruments:
 
 
Derivative liability, fair value, designated as hedging instrument
0 
 
Not Designated as Hedging Instrument [Member] |
Commodity swaps [Member]
 
 
Derivatives designated as hedging instruments:
 
 
Derivative, notional amount
123.2 
111.1 
Not Designated as Hedging Instrument [Member] |
Commodity swaps [Member] |
Other current assets [Member]
 
 
Derivatives not designated as hedging instruments:
 
 
Derivative Instruments Not Designated as Hedging Instruments, Asset, at Fair Value
0.3 
0.2 
Not Designated as Hedging Instrument [Member] |
Commodity swaps [Member] |
Other non-current assets [Member]
 
 
Derivatives not designated as hedging instruments:
 
 
Derivative Instruments Not Designated as Hedging Instruments, Asset, at Fair Value
0.5 
0.4 
Not Designated as Hedging Instrument [Member] |
Commodity swaps [Member] |
Accounts payable and other current liabilities [Member]
 
 
Derivatives not designated as hedging instruments:
 
 
Derivative Instruments Not Designated as Hedging Instruments, Liability, at Fair Value
(7.5)
(4.9)
Not Designated as Hedging Instrument [Member] |
Commodity swaps [Member] |
Other liabilities [Member]
 
 
Derivatives not designated as hedging instruments:
 
 
Derivative Instruments Not Designated as Hedging Instruments, Liability, at Fair Value
$ (6.4)
$ (4.6)
Derivative Instruments and Hedging Activities Cash Flow Hedges (Details) (USD $)
In Millions, unless otherwise specified
3 Months Ended 6 Months Ended
Jun. 30, 2015
Jun. 30, 2014
Jun. 30, 2015
Jun. 30, 2014
Cash Flow Hedging [Member]
 
 
 
 
Derivative Instruments, Gain (Loss) [Line Items]
 
 
 
 
Amount of (gain) loss recognized in OCI on derivative (effective portion)
$ 0.4 
$ (15.2)
$ 6.2 
$ (0.2)
Amount of gain (loss) recognized from AOCI on derivative (effective portion)
2.2 
3.5 
4.2 
8.2 
Amount of gain (loss) recognized in income on derivative (ineffective portion and amount excluded from effectiveness testing)
0 
0 
0 
0 
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)
10.7 
(0.3)
(5.0)
(0.3)
Cash Flow Hedging [Member] |
Forward starting interest rate swap [Member] |
Interest expense, net [Member]
 
 
 
 
Derivative Instruments, Gain (Loss) [Line Items]
 
 
 
 
Amount of gain (loss) recognized from AOCI on derivative (effective portion)
(0.3)
(0.4)
(0.6)
(0.8)
Amount of gain (loss) recognized in income on derivative (ineffective portion and amount excluded from effectiveness testing)
0 
0 
0 
0 
Cash Flow Hedging [Member] |
Foreign currency forwards [Member]
 
 
 
 
Derivative Instruments, Gain (Loss) [Line Items]
 
 
 
 
Amount of (gain) loss recognized in OCI on derivative (effective portion)
(10.3)
(15.1)
11.2 
(0.4)
Cash Flow Hedging [Member] |
Foreign currency forwards [Member] |
Other income (expense), net [Member]
 
 
 
 
Derivative Instruments, Gain (Loss) [Line Items]
 
 
 
 
Amount of gain (loss) recognized from AOCI on derivative (effective portion)
(2.9)
0.7 
(5.3)
2.3 
Amount of gain (loss) recognized in income on derivative (ineffective portion and amount excluded from effectiveness testing)
0 
0 
0 
0 
Cash Flow Hedging [Member] |
Foreign currency forwards [Member] |
Cost of goods sold [Member]
 
 
 
 
Derivative Instruments, Gain (Loss) [Line Items]
 
 
 
 
Amount of gain (loss) recognized from AOCI on derivative (effective portion)
5.4 
3.0 
10.1 
6.3 
Amount of gain (loss) recognized in income on derivative (ineffective portion and amount excluded from effectiveness testing)
0 
0 
0 
0 
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 
 
0.5 
Cash Flow Hedging [Member] |
Commodity swaps [Member] |
Cost of goods sold [Member]
 
 
 
 
Derivative Instruments, Gain (Loss) [Line Items]
 
 
 
 
Amount of gain (loss) recognized from AOCI on derivative (effective portion)
 
0.2 
 
0.4 
Amount of gain (loss) recognized in income on derivative (ineffective portion and amount excluded from effectiveness testing)
 
0 
 
0 
Investment Hedge [Member]
 
 
 
 
Derivative Instruments, Gain (Loss) [Line Items]
 
 
 
 
Amount of (gain) loss recognized in OCI on derivative (effective portion)
(11.0)
 
4.5 
6.5 
Amount of gain (loss) recognized from AOCI on derivative (effective portion)
0 
 
0 
0 
Amount of gain (loss) recognized in income on derivative (ineffective portion and amount excluded from effectiveness testing)
(1.2)
 
(0.8)
0 
Investment Hedge [Member] |
Cross currency swaps [Member]
 
 
 
 
Derivative Instruments, Gain (Loss) [Line Items]
 
 
 
 
Amount of (gain) loss recognized in OCI on derivative (effective portion)
(11.0)
 
4.5 
6.5 
Investment Hedge [Member] |
Cross currency swaps [Member] |
Interest expense, net [Member]
 
 
 
 
Derivative Instruments, Gain (Loss) [Line Items]
 
 
 
 
Amount of gain (loss) recognized from AOCI on derivative (effective portion)
0 
 
0 
 
Amount of gain (loss) recognized in income on derivative (ineffective portion and amount excluded from effectiveness testing)
(1.2)
 
(0.8)
 
Investment Hedge [Member] |
Cross currency swaps [Member] |
Other income (expense), net [Member]
 
 
 
 
Derivative Instruments, Gain (Loss) [Line Items]
 
 
 
 
Amount of gain (loss) recognized from AOCI on derivative (effective portion)
 
 
 
0 
Amount of gain (loss) recognized in income on derivative (ineffective portion and amount excluded from effectiveness testing)
 
 
 
0 
Fair Value Hedging [Member]
 
 
 
 
Derivative Instruments, Gain (Loss) [Line Items]
 
 
 
 
Amount of gain (loss) recognized in income on derivative
(11.1)
1.2 
(2.1)
1.2 
Fair Value Hedging [Member] |
Interest rate swaps [Member] |
Interest expense, net [Member]
 
 
 
 
Derivative Instruments, Gain (Loss) [Line Items]
 
 
 
 
Amount of gain (loss) recognized in income on derivative
$ (11.1)
$ 1.2 
$ (2.1)
$ 1.2 
Derivative Instruments and Hedging Activities Other Derivatives (Details) (Not Designated as Hedging Instrument [Member], USD $)
In Millions, unless otherwise specified
3 Months Ended 6 Months Ended
Jun. 30, 2015
Jun. 30, 2014
Jun. 30, 2015
Jun. 30, 2014
Gain (Loss) on Derivative Instruments:
 
 
 
 
Amount of Gain (Loss) Recognized in Income on Derivative
$ (6.5)
$ 0.7 
$ (5.9)
$ (0.6)
Commodity swaps [Member] |
Cost of goods sold [Member]
 
 
 
 
Gain (Loss) on Derivative Instruments:
 
 
 
 
Amount of Gain (Loss) Recognized in Income on Derivative
(5.4)
0.7 
(6.0)
(0.6)
Foreign currency forwards [Member] |
Other income (expense), net [Member]
 
 
 
 
Gain (Loss) on Derivative Instruments:
 
 
 
 
Amount of Gain (Loss) Recognized in Income on Derivative
$ (1.1)
 
$ 0.1 
 
Pension and Other Postretirement Benefits (Details)
In Millions, unless otherwise specified
3 Months Ended 6 Months Ended 3 Months Ended 6 Months Ended 12 Months Ended 1 Months Ended 3 Months Ended 6 Months Ended
Jun. 30, 2015
USD ($)
Jun. 30, 2014
USD ($)
Jun. 30, 2015
USD ($)
Jun. 30, 2014
USD ($)
Jun. 30, 2015
Defined Benefit Plans
USD ($)
Jun. 30, 2014
Defined Benefit Plans
USD ($)
Jun. 30, 2015
Defined Benefit Plans
USD ($)
Jun. 30, 2014
Defined Benefit Plans
USD ($)
Dec. 31, 2015
Defined Benefit Plans
Forecast
USD ($)
Jan. 30, 2015
Defined Benefit Plans
United Kingdom (U.K.)
USD ($)
Jan. 30, 2015
Defined Benefit Plans
United Kingdom (U.K.)
GBP (£)
Jun. 30, 2015
Other Postretirement Benefits
USD ($)
Jun. 30, 2014
Other Postretirement Benefits
USD ($)
Jun. 30, 2015
Other Postretirement Benefits
USD ($)
Jun. 30, 2014
Other Postretirement Benefits
USD ($)
Net periodic pension and OPEB costs:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Service cost - benefits earned during the year
$ 3.0 
$ 4.1 
$ 6.1 
$ 8.1 
$ 2.6 
$ 3.3 
$ 5.2 
$ 6.6 
 
 
 
$ 0.4 
$ 0.8 
$ 0.9 
$ 1.5 
Interest cost on projected benefit obligation
36.4 
44.5 
72.3 
88.3 
34.9 
42.6 
69.3 
84.7 
 
 
 
1.5 
1.9 
3.0 
3.6 
Expected return on plan assets
(44.6)
(49.8)
(88.7)
(98.9)
(44.6)
(49.8)
(88.7)
(98.9)
 
 
 
0 
0 
0 
0 
Amortization of prior service cost (benefit)
0.1 
(0.5)
0.2 
(1.1)
0.2 
0.2 
0.4 
0.4 
 
 
 
(0.1)
(0.7)
(0.2)
(1.5)
Amortization of net actuarial loss (gain)
11.9 
9.0 
23.1 
17.9 
11.9 
9.3 
23.1 
18.4 
 
 
 
0 
(0.3)
0 
(0.5)
Curtailment (gain) loss
 
 
(1.0)
0 
 
 
(1.0)
0 
 
 
 
 
 
0 
0 
Defined Benefit Plan Expected Participant Contributions
(0.2)
(0.3)
(0.4)
(0.6)
(0.2)
(0.3)
(0.4)
(0.6)
 
 
 
0 
0 
0 
0 
Net periodic pension and OPEB cost
6.6 
7.0 
11.6 
13.7 
4.8 
5.3 
7.9 
10.6 
 
 
 
1.8 
1.7 
3.7 
3.1 
Contributions paid to defined benefit plans
 
 
240.2 
 
 
 
 
 
 
227.1 
150.0 
 
 
 
 
Expected total defined benefit plan employer contributions
 
 
 
 
 
 
 
 
$ 260 
 
 
 
 
 
 
Commitments and Contingencies Loss Contingency (Details)
1 Months Ended 3 Months Ended 6 Months Ended 12 Months Ended 0 Months Ended 3 Months Ended 6 Months Ended
Dec. 31, 2009
CAD ($)
Mar. 31, 2014
USD ($)
Jun. 30, 2015
USD ($)
Dec. 31, 2014
USD ($)
Jun. 30, 2015
Kaiser purchased tax credits indemnity reserve, category two
USD ($)
Jun. 30, 2015
Kaiser Tax, Civil and Labor Indemnity Reserve [Member]
USD ($)
Dec. 31, 1990
Environmental matters Lowry [Member]
USD ($)
Jun. 30, 2015
Environmental matters Lowry [Member]
USD ($)
Dec. 12, 2014
David Hughes and 631992 Ontario Inc [Member]
CAD ($)
Jun. 30, 2015
Cervejarias Kaiser Brasil S.A. [Member]
USD ($)
Jun. 30, 2014
Cervejarias Kaiser Brasil S.A. [Member]
USD ($)
Jun. 30, 2015
Cervejarias Kaiser Brasil S.A. [Member]
USD ($)
Jun. 30, 2014
Cervejarias Kaiser Brasil S.A. [Member]
USD ($)
Jun. 30, 2015
Other Current Liabilities [Member]
Brewers' Retail Inc. (BRI) [Member]
USD ($)
Jun. 30, 2015
Other Noncurrent Liabilities [Member]
Canada [Member]
USD ($)
Dec. 31, 2014
Other Noncurrent Liabilities [Member]
Canada [Member]
USD ($)
Loss Contingencies [Line Items]
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Gain (loss) discontinued operations
 
 
 
 
 
 
 
 
 
$ (300,000)
$ 200,000 
$ 1,600,000 
$ (1,700,000)
 
 
 
Equity interest sold (as a percent)
 
 
 
 
 
68.00% 
 
 
 
 
 
 
 
 
 
 
Loss contingency, possible loss, maximum
 
 
98,000,000 
 
112,800,000 
68,000,000 
 
 
 
 
 
 
 
 
 
 
Guarantor Obligations, Current Carrying Value
 
 
 
 
 
 
 
 
 
 
 
 
 
10,800,000 
4,900,000 
5,300,000 
Guarantees
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Letter of credit provided to entity
10,000,000 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Litigation and Other Disputes
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Accrued liabilities, litigations and disputes
 
 
15,100,000 
16,600,000 
 
 
 
 
 
 
 
 
 
 
 
 
Loss contingency, possible loss, portion not accrued
 
 
81,000,000 
 
 
 
 
 
 
 
 
 
 
 
 
 
Loss contingency, possible loss, minimum
 
 
0 
 
 
 
 
 
 
 
 
 
 
 
 
 
Gain on litigation, favorable outcome
 
13,000,000 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Income tax benefit, litigation settlement
 
(18,500,000)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Loss contingency, damages sought
 
 
 
 
 
 
 
 
1,400,000,000 
 
 
 
 
 
 
 
Environmental
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Environmental remediation expense, pretax charge
 
 
 
 
 
 
30,000,000 
 
 
 
 
 
 
 
 
 
Environmental remediation threshold, assumed remediation cost
 
 
 
 
 
 
 
120,000,000 
 
 
 
 
 
 
 
 
Inflation rate assumption, future costs (as a percent)
 
 
 
 
 
 
 
2.50% 
 
 
 
 
 
 
 
 
Risk free rate of return assumption (as a percent)
 
 
 
 
 
 
 
2.73% 
 
 
 
 
 
 
 
 
Site contingency, accrual, present value
 
 
 
 
 
 
 
3,000,000 
 
 
 
 
 
 
 
 
Site contingency, accrual, undiscounted amount
 
 
 
 
 
 
 
$ 7,300,000 
 
 
 
 
 
 
 
 
Supplemental Guarantor Information Supplemental Narrative (Details)
3 Months Ended 6 Months Ended 3 Months Ended 6 Months Ended 12 Months Ended
Jun. 30, 2015
USD ($)
Jun. 30, 2014
USD ($)
Jun. 30, 2015
USD ($)
Jun. 30, 2014
USD ($)
Dec. 31, 2014
USD ($)
Jun. 30, 2015
Parent Guarantor and 2012 Issuer [Member]
USD ($)
Jun. 30, 2014
Parent Guarantor and 2012 Issuer [Member]
USD ($)
Jun. 30, 2015
Parent Guarantor and 2012 Issuer [Member]
USD ($)
Jun. 30, 2014
Parent Guarantor and 2012 Issuer [Member]
USD ($)
Dec. 31, 2014
Parent Guarantor and 2012 Issuer [Member]
USD ($)
May 3, 2012
Senior Notes [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 
$ 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
463,600,000 
453,400,000 
(92,700,000)
455,300,000 
 
463,600,000 
453,400,000 
(92,700,000)
455,300,000 
 
 
 
 
 
 
 
 
 
 
Investments in and Advance to Affiliates, Subsidiaries, Associates, and Joint Ventures
 
 
 
 
 
12,673,400,000 
 
12,673,400,000 
 
12,582,800,000 
 
 
 
 
 
 
 
 
 
Stockholders' Equity Attributable to Parent
7,607,100,000 
 
7,607,100,000 
 
7,863,300,000 
7,607,100,000 
 
7,607,100,000 
 
7,863,300,000 
 
 
 
 
 
 
 
 
 
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, 2015
Jun. 30, 2014
Jun. 30, 2015
Jun. 30, 2014
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
 
 
 
 
Sales
$ 1,433.0 
$ 1,685.9 
$ 2,436.2 
$ 2,864.2 
Excise taxes
(427.3)
(497.4)
(730.5)
(859.7)
Net sales
1,005.7 
1,188.5 
1,705.7 
2,004.5 
Cost of goods sold
(579.9)
(683.3)
(1,034.7)
(1,206.5)
Gross profit
425.8 
505.2 
671.0 
798.0 
Marketing, general and administrative expenses
(283.3)
(327.8)
(523.9)
(591.7)
Special items, net
(33.7)
(2.7)
(42.3)
49.8 
Equity income in MillerCoors
205.5 
190.1 
334.8 
312.9 
Operating income (loss)
314.3 
364.8 
439.6 
569.0 
Interest income (expense), net
(30.6)
(36.2)
(59.8)
(71.6)
Other income (expense), net
6.3 
0.7 
3.7 
1.5 
Income (loss) from continuing operations before income taxes
290.0 
329.3 
383.5 
498.9 
Income tax benefit (expense)
(58.4)
(36.4)
(71.2)
(41.2)
Net Income (loss) from continuing operations
231.6 
292.9 
312.3 
457.7 
Income (loss) from discontinued operations, net of tax
(0.3)
0.2 
1.6 
(1.7)
Net income (loss) including noncontrolling interests
231.3 
293.1 
313.9 
456.0 
Net (income) loss attributable to noncontrolling interests
(2.3)
(2.2)
(3.8)
(1.7)
Net income (loss) attributable to MCBC
229.0 
290.9 
310.1 
454.3 
Comprehensive income (loss) attributable to Molson Coors Brewing Company
463.6 
453.4 
(92.7)
455.3 
Parent Guarantor and 2012 Issuer [Member]
 
 
 
 
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
 
 
 
 
Sales
6.1 
(3.2)
11.0 
4.8 
Excise taxes
0 
0 
0 
0 
Net sales
6.1 
(3.2)
11.0 
4.8 
Cost of goods sold
0 
0 
0 
0 
Gross profit
6.1 
(3.2)
11.0 
4.8 
Marketing, general and administrative expenses
(30.3)
(29.6)
(58.4)
(60.8)
Special items, net
0 
(0.3)
0 
(0.3)
Equity income (loss) in subsidiaries
184.0 
296.0 
288.2 
497.4 
Equity income in MillerCoors
0 
0 
0 
0 
Operating income (loss)
159.8 
262.9 
240.8 
441.1 
Interest income (expense), net
(15.9)
(22.4)
(33.1)
(43.8)
Other income (expense), net
0.3 
2.1 
(1.0)
2.4 
Income (loss) from continuing operations before income taxes
144.2 
242.6 
206.7 
399.7 
Income tax benefit (expense)
84.8 
48.3 
103.4 
54.6 
Net Income (loss) from continuing operations
229.0 
290.9 
310.1 
454.3 
Income (loss) from discontinued operations, net of tax
0 
0 
0 
0 
Net income (loss) including noncontrolling interests
229.0 
290.9 
310.1 
454.3 
Net (income) loss attributable to noncontrolling interests
0 
0 
0 
0 
Net income (loss) attributable to MCBC
229.0 
290.9 
310.1 
454.3 
Comprehensive income (loss) attributable to Molson Coors Brewing Company
463.6 
453.4 
(92.7)
455.3 
Subsidiary Guarantors [Member]
 
 
 
 
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
 
 
 
 
Sales
1,082.6 
1,262.5 
1,906.4 
2,213.3 
Excise taxes
(348.5)
(405.2)
(605.4)
(710.1)
Net sales
734.1 
857.3 
1,301.0 
1,503.2 
Cost of goods sold
(437.8)
(520.8)
(799.1)
(925.5)
Gross profit
296.3 
336.5 
501.9 
577.7 
Marketing, general and administrative expenses
(176.5)
(193.7)
(329.5)
(367.5)
Special items, net
1.7 
(0.6)
(8.9)
(11.3)
Equity income (loss) in subsidiaries
(67.7)
60.0 
(160.1)
26.3 
Equity income in MillerCoors
205.5 
190.1 
334.8 
312.9 
Operating income (loss)
259.3 
392.3 
338.2 
538.1 
Interest income (expense), net
61.2 
73.9 
120.1 
149.7 
Other income (expense), net
3.6 
1.2 
1.3 
3.2 
Income (loss) from continuing operations before income taxes
324.1 
467.4 
459.6 
691.0 
Income tax benefit (expense)
(141.2)
(117.1)
(172.1)
(132.4)
Net Income (loss) from continuing operations
182.9 
350.3 
287.5 
558.6 
Income (loss) from discontinued operations, net of tax
0 
0 
0 
0 
Net income (loss) including noncontrolling interests
182.9 
350.3 
287.5 
558.6 
Net (income) loss attributable to noncontrolling interests
0 
0 
0 
0 
Net income (loss) attributable to MCBC
182.9 
350.3 
287.5 
558.6 
Comprehensive income (loss) attributable to Molson Coors Brewing Company
417.9 
508.5 
(87.5)
602.5 
Subsidiary Non Guarantors [Member]
 
 
 
 
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
 
 
 
 
Sales
351.4 
415.0 
559.0 
674.0 
Excise taxes
(78.8)
(92.2)
(125.1)
(149.6)
Net sales
272.6 
322.8 
433.9 
524.4 
Cost of goods sold
(137.8)
(147.2)
(253.9)
(290.0)
Gross profit
134.8 
175.6 
180.0 
234.4 
Marketing, general and administrative expenses
(87.9)
(108.2)
(157.9)
(182.3)
Special items, net
(35.4)
(1.8)
(33.4)
61.4 
Equity income (loss) in subsidiaries
160.5 
99.0 
184.1 
120.2 
Equity income in MillerCoors
0 
0 
0 
0 
Operating income (loss)
172.0 
164.6 
172.8 
233.7 
Interest income (expense), net
(75.9)
(87.7)
(146.8)
(177.5)
Other income (expense), net
2.4 
(2.6)
3.4 
(4.1)
Income (loss) from continuing operations before income taxes
98.5 
74.3 
29.4 
52.1 
Income tax benefit (expense)
(2.0)
32.4 
(2.5)
36.6 
Net Income (loss) from continuing operations
96.5 
106.7 
26.9 
88.7 
Income (loss) from discontinued operations, net of tax
(0.3)
0.2 
1.6 
(1.7)
Net income (loss) including noncontrolling interests
96.2 
106.9 
28.5 
87.0 
Net (income) loss attributable to noncontrolling interests
(2.3)
(2.2)
(3.8)
(1.7)
Net income (loss) attributable to MCBC
93.9 
104.7 
24.7 
85.3 
Comprehensive income (loss) attributable to Molson Coors Brewing Company
242.2 
156.0 
(51.6)
134.1 
Eliminations [Member]
 
 
 
 
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
 
 
 
 
Sales
(7.1)
11.6 
(40.2)
(27.9)
Excise taxes
0 
0 
0 
0 
Net sales
(7.1)
11.6 
(40.2)
(27.9)
Cost of goods sold
(4.3)
(15.3)
18.3 
9.0 
Gross profit
(11.4)
(3.7)
(21.9)
(18.9)
Marketing, general and administrative expenses
11.4 
3.7 
21.9 
18.9 
Special items, net
0 
0 
0 
0 
Equity income (loss) in subsidiaries
(276.8)
(455.0)
(312.2)
(643.9)
Equity income in MillerCoors
0 
0 
0 
0 
Operating income (loss)
(276.8)
(455.0)
(312.2)
(643.9)
Interest income (expense), net
0 
0 
0 
0 
Other income (expense), net
0 
0 
0 
0 
Income (loss) from continuing operations before income taxes
(276.8)
(455.0)
(312.2)
(643.9)
Income tax benefit (expense)
0 
0 
0 
0 
Net Income (loss) from continuing operations
(276.8)
(455.0)
(312.2)
(643.9)
Income (loss) from discontinued operations, net of tax
0 
0 
0 
0 
Net income (loss) including noncontrolling interests
(276.8)
(455.0)
(312.2)
(643.9)
Net (income) loss attributable to noncontrolling interests
0 
0 
0 
0 
Net income (loss) attributable to MCBC
(276.8)
(455.0)
(312.2)
(643.9)
Comprehensive income (loss) attributable to Molson Coors Brewing Company
(660.1)
(664.5)
139.1 
(736.6)
Consolidated [Member]
 
 
 
 
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
 
 
 
 
Sales
1,433.0 
1,685.9 
2,436.2 
2,864.2 
Excise taxes
(427.3)
(497.4)
(730.5)
(859.7)
Net sales
1,005.7 
1,188.5 
1,705.7 
2,004.5 
Cost of goods sold
(579.9)
(683.3)
(1,034.7)
(1,206.5)
Gross profit
425.8 
505.2 
671.0 
798.0 
Marketing, general and administrative expenses
(283.3)
(327.8)
(523.9)
(591.7)
Special items, net
(33.7)
(2.7)
(42.3)
49.8 
Equity income (loss) in subsidiaries
0 
0 
0 
0 
Equity income in MillerCoors
205.5 
190.1 
334.8 
312.9 
Operating income (loss)
314.3 
364.8 
439.6 
569.0 
Interest income (expense), net
(30.6)
(36.2)
(59.8)
(71.6)
Other income (expense), net
6.3 
0.7 
3.7 
1.5 
Income (loss) from continuing operations before income taxes
290.0 
329.3 
383.5 
498.9 
Income tax benefit (expense)
(58.4)
(36.4)
(71.2)
(41.2)
Net Income (loss) from continuing operations
231.6 
292.9 
312.3 
457.7 
Income (loss) from discontinued operations, net of tax
(0.3)
0.2 
1.6 
(1.7)
Net income (loss) including noncontrolling interests
231.3 
293.1 
313.9 
456.0 
Net (income) loss attributable to noncontrolling interests
(2.3)
(2.2)
(3.8)
(1.7)
Net income (loss) attributable to MCBC
229.0 
290.9 
310.1 
454.3 
Comprehensive income (loss) attributable to Molson Coors Brewing Company
$ 463.6 
$ 453.4 
$ (92.7)
$ 455.3 
Supplemental Guarantor Information Balance Sheet (Details) (USD $)
In Millions, unless otherwise specified
Jun. 30, 2015
Dec. 31, 2014
Jun. 30, 2014
Dec. 31, 2013
Current assets:
 
 
 
 
Cash and cash equivalents
$ 413.8 
$ 624.6 
$ 506.0 
$ 442.3 
Accounts receivable, net
595.1 
527.7 
 
 
Other receivables, net
90.5 
94.0 
 
 
Total inventories, net
244.3 
202.2 
 
 
Other current assets, net
105.3 
103.2 
 
 
Deferred tax assets
27.2 
27.2 
 
 
Total current assets
1,476.2 
1,578.9 
 
 
Properties, net
1,709.4 
1,798.0 
 
 
Goodwill
2,115.3 
2,191.6 
 
 
Other intangibles, net
5,373.3 
5,755.8 
 
 
Investment in MillerCoors
2,452.9 
2,388.6 
 
 
Deferred tax assets
51.2 
58.2 
 
 
Total assets
13,397.2 
13,996.3 
 
 
Current liabilities :
 
 
 
 
Deferred tax liabilities
179.0 
164.8 
 
 
Current portion of long-term debt and short-term borrowings
832.4 
849.4 
 
 
Discontinued operations
5.2 
6.1 
 
 
Total current liabilities
2,349.5 
2,325.3 
 
 
Long-term debt
2,305.2 
2,337.1 
 
 
Pension and postretirement benefits
269.0 
542.9 
 
 
Deferred tax liabilities
739.0 
784.3 
 
 
Discontinued operations
13.2 
15.5 
 
 
Total liabilities
5,765.8 
6,110.2 
 
 
MCBC stockholders' equity
7,607.1 
7,863.3 
 
 
Noncontrolling interests
24.3 
22.8 
 
 
Total equity
7,631.4 
7,886.1 
 
 
Total liabilities and equity
13,397.2 
13,996.3 
 
 
Parent Guarantor and 2012 Issuer [Member]
 
 
 
 
Current assets:
 
 
 
 
Cash and cash equivalents
85.1 
40.9 
77.4 
90.6 
Accounts receivable, net
0 
2.3 
 
 
Other receivables, net
25.1 
17.4 
 
 
Total inventories, net
0 
0 
 
 
Other current assets, net
6.2 
7.0 
 
 
Deferred tax assets
2.2 
2.2 
 
 
Intercompany accounts receivable
0 
0 
 
 
Total current assets
118.6 
69.8 
 
 
Properties, net
28.8 
26.9 
 
 
Goodwill
0 
0 
 
 
Other intangibles, net
0 
0 
 
 
Investment in MillerCoors
0 
0 
 
 
Net investment in and advances to subsidiaries
12,673.4 
12,582.8 
 
 
Deferred tax assets
18.0 
21.3 
 
 
Other assets
32.2 
31.1 
 
 
Total assets
12,871.0 
12,731.9 
 
 
Current liabilities :
 
 
 
 
Accounts payable and other current liabilities
44.1 
61.9 
 
 
Deferred tax liabilities
0 
0 
 
 
Current portion of long-term debt and short-term borrowings
65.0 
0 
 
 
Discontinued operations
0 
0 
 
 
Intercompany accounts payable
3,229.0 
2,881.1 
 
 
Total current liabilities
3,338.1 
2,943.0 
 
 
Long-term debt
1,905.3 
1,907.3 
 
 
Pension and postretirement benefits
3.1 
2.9 
 
 
Deferred tax liabilities
0 
0 
 
 
Other liabilities
18.5 
16.6 
 
 
Discontinued operations
0 
0 
 
 
Intercompany notes payable
0 
0 
 
 
Total liabilities
5,265.0 
4,869.8 
 
 
MCBC stockholders' equity
7,607.1 
7,863.3 
 
 
Intercompany notes receivable
(1.1)
(1.2)
 
 
Total stockholders' equity
7,606.0 
7,862.1 
 
 
Noncontrolling interests
0 
0 
 
 
Total equity
7,606.0 
7,862.1 
 
 
Total liabilities and equity
12,871.0 
12,731.9 
 
 
Subsidiary Guarantors [Member]
 
 
 
 
Current assets:
 
 
 
 
Cash and cash equivalents
199.1 
470.7 
263.6 
248.7 
Accounts receivable, net
384.9 
391.0 
 
 
Other receivables, net
44.2 
50.3 
 
 
Total inventories, net
195.1 
170.1 
 
 
Other current assets, net
59.1 
55.4 
 
 
Deferred tax assets
0.9 
0 
 
 
Intercompany accounts receivable
3,688.7 
3,313.0 
 
 
Total current assets
4,572.0 
4,450.5 
 
 
Properties, net
1,079.0 
1,161.4 
 
 
Goodwill
1,073.6 
1,085.2 
 
 
Other intangibles, net
3,624.8 
3,883.9 
 
 
Investment in MillerCoors
2,452.9 
2,388.6 
 
 
Net investment in and advances to subsidiaries
4,047.9 
3,618.6 
 
 
Deferred tax assets
20.7 
23.4 
 
 
Other assets
144.9 
144.7 
 
 
Total assets
17,015.8 
16,756.3 
 
 
Current liabilities :
 
 
 
 
Accounts payable and other current liabilities
882.6 
903.3 
 
 
Deferred tax liabilities
185.6 
171.4 
 
 
Current portion of long-term debt and short-term borrowings
720.2 
774.3 
 
 
Discontinued operations
0 
0 
 
 
Intercompany accounts payable
353.3 
312.8 
 
 
Total current liabilities
2,141.7 
2,161.8 
 
 
Long-term debt
399.9 
429.8 
 
 
Pension and postretirement benefits
259.9 
534.0 
 
 
Deferred tax liabilities
0 
0 
 
 
Other liabilities
34.0 
45.8 
 
 
Discontinued operations
0 
0 
 
 
Intercompany notes payable
1,379.4 
1,211.9 
 
 
Total liabilities
4,214.9 
4,383.3 
 
 
MCBC stockholders' equity
18,132.5 
18,041.3 
 
 
Intercompany notes receivable
(5,331.6)
(5,668.3)
 
 
Total stockholders' equity
12,800.9 
12,373.0 
 
 
Noncontrolling interests
0 
0 
 
 
Total equity
12,800.9 
12,373.0 
 
 
Total liabilities and equity
17,015.8 
16,756.3 
 
 
Subsidiary Non Guarantors [Member]
 
 
 
 
Current assets:
 
 
 
 
Cash and cash equivalents
129.6 
113.0 
165.0 
103.0 
Accounts receivable, net
210.2 
134.4 
 
 
Other receivables, net
21.2 
26.3 
 
 
Total inventories, net
49.2 
32.1 
 
 
Other current assets, net
40.0 
40.8 
 
 
Deferred tax assets
30.8 
31.6 
 
 
Intercompany accounts receivable
316.5 
251.8 
 
 
Total current assets
797.5 
630.0 
 
 
Properties, net
601.6 
609.7 
 
 
Goodwill
1,041.7 
1,106.4 
 
 
Other intangibles, net
1,748.5 
1,871.9 
 
 
Investment in MillerCoors
0 
0 
 
 
Net investment in and advances to subsidiaries
5,587.1 
5,998.2 
 
 
Deferred tax assets
0.2 
1.2 
 
 
Other assets
41.8 
49.4 
 
 
Total assets
9,818.4 
10,266.8 
 
 
Current liabilities :
 
 
 
 
Accounts payable and other current liabilities
406.2 
339.8 
 
 
Deferred tax liabilities
0.1 
0 
 
 
Current portion of long-term debt and short-term borrowings
47.2 
75.1 
 
 
Discontinued operations
5.2 
6.1 
 
 
Intercompany accounts payable
422.9 
370.9 
 
 
Total current liabilities
881.6 
791.9 
 
 
Long-term debt
0 
0 
 
 
Pension and postretirement benefits
6.0 
6.0 
 
 
Deferred tax liabilities
726.7 
772.0 
 
 
Other liabilities
37.4 
42.7 
 
 
Discontinued operations
13.2 
15.5 
 
 
Intercompany notes payable
5,332.7 
5,669.5 
 
 
Total liabilities
6,997.6 
7,297.6 
 
 
MCBC stockholders' equity
4,175.9 
4,158.3 
 
 
Intercompany notes receivable
(1,379.4)
(1,211.9)
 
 
Total stockholders' equity
2,796.5 
2,946.4 
 
 
Noncontrolling interests
24.3 
22.8 
 
 
Total equity
2,820.8 
2,969.2 
 
 
Total liabilities and equity
9,818.4 
10,266.8 
 
 
Eliminations [Member]
 
 
 
 
Current assets:
 
 
 
 
Cash and cash equivalents
0 
0 
0 
0 
Accounts receivable, net
0 
0 
 
 
Other receivables, net
0 
0 
 
 
Total inventories, net
0 
0 
 
 
Other current assets, net
0 
0 
 
 
Deferred tax assets
(6.7)
(6.6)
 
 
Intercompany accounts receivable
(4,005.2)
(3,564.8)
 
 
Total current assets
(4,011.9)
(3,571.4)
 
 
Properties, net
0 
0 
 
 
Goodwill
0 
0 
 
 
Other intangibles, net
0 
0 
 
 
Investment in MillerCoors
0 
0 
 
 
Net investment in and advances to subsidiaries
(22,308.4)
(22,199.6)
 
 
Deferred tax assets
12.3 
12.3 
 
 
Other assets
0 
0 
 
 
Total assets
(26,308.0)
(25,758.7)
 
 
Current liabilities :
 
 
 
 
Accounts payable and other current liabilities
0 
0 
 
 
Deferred tax liabilities
(6.7)
(6.6)
 
 
Current portion of long-term debt and short-term borrowings
0 
0 
 
 
Discontinued operations
0 
0 
 
 
Intercompany accounts payable
(4,005.2)
(3,564.8)
 
 
Total current liabilities
(4,011.9)
(3,571.4)
 
 
Long-term debt
0 
0 
 
 
Pension and postretirement benefits
0 
0 
 
 
Deferred tax liabilities
12.3 
12.3 
 
 
Other liabilities
0 
0 
 
 
Discontinued operations
0 
0 
 
 
Intercompany notes payable
(6,712.1)
(6,881.4)
 
 
Total liabilities
(10,711.7)
(10,440.5)
 
 
MCBC stockholders' equity
(22,308.4)
(22,199.6)
 
 
Intercompany notes receivable
6,712.1 
6,881.4 
 
 
Total stockholders' equity
(15,596.3)
(15,318.2)
 
 
Noncontrolling interests
0 
0 
 
 
Total equity
(15,596.3)
(15,318.2)
 
 
Total liabilities and equity
(26,308.0)
(25,758.7)
 
 
Consolidated [Member]
 
 
 
 
Current assets:
 
 
 
 
Cash and cash equivalents
413.8 
624.6 
506.0 
442.3 
Accounts receivable, net
595.1 
527.7 
 
 
Other receivables, net
90.5 
94.0 
 
 
Total inventories, net
244.3 
202.2 
 
 
Other current assets, net
105.3 
103.2 
 
 
Deferred tax assets
27.2 
27.2 
 
 
Intercompany accounts receivable
0 
0 
 
 
Total current assets
1,476.2 
1,578.9 
 
 
Properties, net
1,709.4 
1,798.0 
 
 
Goodwill
2,115.3 
2,191.6 
 
 
Other intangibles, net
5,373.3 
5,755.8 
 
 
Investment in MillerCoors
2,452.9 
2,388.6 
 
 
Net investment in and advances to subsidiaries
0 
0 
 
 
Deferred tax assets
51.2 
58.2 
 
 
Other assets
218.9 
225.2 
 
 
Total assets
13,397.2 
13,996.3 
 
 
Current liabilities :
 
 
 
 
Accounts payable and other current liabilities
1,332.9 
1,305.0 
 
 
Deferred tax liabilities
179.0 
164.8 
 
 
Current portion of long-term debt and short-term borrowings
832.4 
849.4 
 
 
Discontinued operations
5.2 
6.1 
 
 
Intercompany accounts payable
0 
0 
 
 
Total current liabilities
2,349.5 
2,325.3 
 
 
Long-term debt
2,305.2 
2,337.1 
 
 
Pension and postretirement benefits
269.0 
542.9 
 
 
Deferred tax liabilities
739.0 
784.3 
 
 
Other liabilities
89.9 
105.1 
 
 
Discontinued operations
13.2 
15.5 
 
 
Intercompany notes payable
0 
0 
 
 
Total liabilities
5,765.8 
6,110.2 
 
 
MCBC stockholders' equity
7,607.1 
7,863.3 
 
 
Intercompany notes receivable
0 
0 
 
 
Total stockholders' equity
7,607.1 
7,863.3 
 
 
Noncontrolling interests
24.3 
22.8 
 
 
Total equity
7,631.4 
7,886.1 
 
 
Total liabilities and equity
$ 13,397.2 
$ 13,996.3 
 
 
Supplemental Guarantor Information Cash Flows (Details) (USD $)
In Millions, unless otherwise specified
6 Months Ended
Jun. 30, 2015
Jun. 30, 2014
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
 
 
Net cash provided by (used in) operating activities
$ 198.1 
$ 576.0 
Cash flows from investing activities:
 
 
Additions to properties
(139.8)
(126.4)
Proceeds from sales of properties and other assets
7.5 
4.1 
Payments to Acquire Businesses, Net of Cash Acquired
51.1 
0 
Investment in MillerCoors
(758.1)
(764.4)
Loan repayments
19.0 
4.0 
Loan advances
(26.1)
(3.3)
Other
(2.4)
0 
Net cash used in investing activities
(258.1)
(194.1)
Cash flows from financing activities:
 
 
Exercise of stock options under equity compensation plans
28.6 
27.7 
Excess tax benefits from share-based compensation
7.6 
3.2 
Dividends paid
(152.3)
(136.7)
Payments for the Repurchase of Treasury Stock
(50.1)
0 
Payments on long-term debt and capital lease obligations
(0.7)
(62.2)
Payments on short-term borrowings
(14.6)
(23.3)
Payments on settlement of derivative instruments
0 
(65.2)
Net proceeds from (payments on) revolving credit facilities and commercial paper
67.2 
(214.3)
Net cash provided by (used in) financing activities
(124.7)
(323.1)
Cash and cash equivalents:
 
 
Net increase (decrease) in cash and cash equivalents
(184.7)
58.8 
Effect of foreign exchange rate changes on cash and cash equivalents
(26.1)
4.9 
Balance at beginning of year
624.6 
442.3 
Balance at end of period
413.8 
506.0 
Parent Guarantor and 2012 Issuer [Member]
 
 
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
 
 
Net cash provided by (used in) operating activities
192.2 
178.0 
Cash flows from investing activities:
 
 
Additions to properties
(6.4)
(5.5)
Proceeds from sales of properties and other assets
0 
0 
Payments to Acquire Businesses, Net of Cash Acquired
0 
 
Investment in MillerCoors
0 
0 
Return of capital from MillerCoors
0 
0 
Loan repayments
0 
0 
Loan advances
0 
0 
Other
0 
 
Net intercompany investing activity
(56.2)
(15.1)
Net cash used in investing activities
(62.6)
(20.6)
Cash flows from financing activities:
 
 
Exercise of stock options under equity compensation plans
28.6 
27.7 
Excess tax benefits from share-based compensation
7.6 
3.2 
Dividends paid
(136.0)
(120.6)
Payments for the Repurchase of Treasury Stock
(50.1)
 
Payments on long-term debt and capital lease obligations
(0.4)
(0.4)
Proceeds from short-term borrowings
0 
0 
Payments on short-term borrowings
0 
0 
Payments on settlement of derivative instruments
 
0 
Net proceeds from (payments on) revolving credit facilities and commercial paper
64.9 
(78.7)
Change in overdraft balances and other
0 
(1.8)
Net intercompany financing activity
0 
0 
Net cash provided by (used in) financing activities
(85.4)
(170.6)
Cash and cash equivalents:
 
 
Net increase (decrease) in cash and cash equivalents
44.2 
(13.2)
Effect of foreign exchange rate changes on cash and cash equivalents
0 
0 
Balance at beginning of year
40.9 
90.6 
Balance at end of period
85.1 
77.4 
Subsidiary Guarantors [Member]
 
 
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
 
 
Net cash provided by (used in) operating activities
83.5 
292.2 
Cash flows from investing activities:
 
 
Additions to properties
(84.2)
(79.2)
Proceeds from sales of properties and other assets
2.3 
2.8 
Payments to Acquire Businesses, Net of Cash Acquired
6.3 
 
Investment in MillerCoors
(758.1)
(764.4)
Return of capital from MillerCoors
692.9 
691.9 
Loan repayments
4.5 
4.0 
Loan advances
(6.2)
(3.3)
Other
(2.4)
 
Net intercompany investing activity
(173.8)
137.6 
Net cash used in investing activities
(331.3)
(10.6)
Cash flows from financing activities:
 
 
Exercise of stock options under equity compensation plans
0 
0 
Excess tax benefits from share-based compensation
0 
0 
Dividends paid
(246.3)
0 
Payments for the Repurchase of Treasury Stock
0 
 
Payments on long-term debt and capital lease obligations
(0.3)
(61.7)
Proceeds from short-term borrowings
0 
0 
Payments on short-term borrowings
0 
0 
Payments on settlement of derivative instruments
 
(65.2)
Net proceeds from (payments on) revolving credit facilities and commercial paper
0 
0 
Change in overdraft balances and other
0 
0.6 
Net intercompany financing activity
240.7 
(142.4)
Net cash provided by (used in) financing activities
(5.9)
(268.7)
Cash and cash equivalents:
 
 
Net increase (decrease) in cash and cash equivalents
(253.7)
12.9 
Effect of foreign exchange rate changes on cash and cash equivalents
(17.9)
2.0 
Balance at beginning of year
470.7 
248.7 
Balance at end of period
199.1 
263.6 
Subsidiary Non Guarantors [Member]
 
 
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
 
 
Net cash provided by (used in) operating activities
168.7 
109.9 
Cash flows from investing activities:
 
 
Additions to properties
(49.2)
(41.7)
Proceeds from sales of properties and other assets
5.2 
1.3 
Payments to Acquire Businesses, Net of Cash Acquired
44.8 
 
Investment in MillerCoors
0 
0 
Return of capital from MillerCoors
0 
0 
Loan repayments
14.5 
0 
Loan advances
(19.9)
0 
Other
0 
 
Net intercompany investing activity
(184.5)
157.5 
Net cash used in investing activities
(278.7)
117.1 
Cash flows from financing activities:
 
 
Exercise of stock options under equity compensation plans
0 
0 
Excess tax benefits from share-based compensation
0 
0 
Dividends paid
(16.3)
(20.2)
Payments for the Repurchase of Treasury Stock
0 
 
Payments on long-term debt and capital lease obligations
0 
(0.1)
Proceeds from short-term borrowings
27.9 
20.9 
Payments on short-term borrowings
(14.6)
(23.3)
Payments on settlement of derivative instruments
 
0 
Net proceeds from (payments on) revolving credit facilities and commercial paper
2.3 
(135.6)
Change in overdraft balances and other
(38.3)
128.0 
Net intercompany financing activity
173.8 
(137.6)
Net cash provided by (used in) financing activities
134.8 
(167.9)
Cash and cash equivalents:
 
 
Net increase (decrease) in cash and cash equivalents
24.8 
59.1 
Effect of foreign exchange rate changes on cash and cash equivalents
(8.2)
2.9 
Balance at beginning of year
113.0 
103.0 
Balance at end of period
129.6 
165.0 
Eliminations [Member]
 
 
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
 
 
Net cash provided by (used in) operating activities
(246.3)
(4.1)
Cash flows from investing activities:
 
 
Additions to properties
0 
0 
Proceeds from sales of properties and other assets
0 
0 
Payments to Acquire Businesses, Net of Cash Acquired
0 
 
Investment in MillerCoors
0 
0 
Return of capital from MillerCoors
0 
0 
Loan repayments
0 
0 
Loan advances
0 
0 
Other
0 
 
Net intercompany investing activity
414.5 
(280.0)
Net cash used in investing activities
414.5 
(280.0)
Cash flows from financing activities:
 
 
Exercise of stock options under equity compensation plans
0 
0 
Excess tax benefits from share-based compensation
0 
0 
Dividends paid
246.3 
4.1 
Payments for the Repurchase of Treasury Stock
0 
 
Payments on long-term debt and capital lease obligations
0 
0 
Proceeds from short-term borrowings
0 
0 
Payments on short-term borrowings
0 
0 
Payments on settlement of derivative instruments
 
0 
Net proceeds from (payments on) revolving credit facilities and commercial paper
0 
0 
Change in overdraft balances and other
0 
0 
Net intercompany financing activity
(414.5)
280.0 
Net cash provided by (used in) financing activities
(168.2)
284.1 
Cash and cash equivalents:
 
 
Net increase (decrease) in cash and cash equivalents
0 
0 
Effect of foreign exchange rate changes on cash and cash equivalents
0 
0 
Balance at beginning of year
0 
0 
Balance at end of period
0 
0 
Consolidated [Member]
 
 
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
 
 
Net cash provided by (used in) operating activities
198.1 
576.0 
Cash flows from investing activities:
 
 
Additions to properties
(139.8)
(126.4)
Proceeds from sales of properties and other assets
7.5 
4.1 
Payments to Acquire Businesses, Net of Cash Acquired
51.1 
 
Investment in MillerCoors
(758.1)
(764.4)
Return of capital from MillerCoors
692.9 
691.9 
Loan repayments
19.0 
4.0 
Loan advances
(26.1)
(3.3)
Other
(2.4)
 
Net intercompany investing activity
0 
0 
Net cash used in investing activities
(258.1)
(194.1)
Cash flows from financing activities:
 
 
Exercise of stock options under equity compensation plans
28.6 
27.7 
Excess tax benefits from share-based compensation
7.6 
3.2 
Dividends paid
(152.3)
(136.7)
Payments for the Repurchase of Treasury Stock
(50.1)
 
Payments on long-term debt and capital lease obligations
(0.7)
(62.2)
Proceeds from short-term borrowings
27.9 
20.9 
Payments on short-term borrowings
(14.6)
(23.3)
Payments on settlement of derivative instruments
 
(65.2)
Net proceeds from (payments on) revolving credit facilities and commercial paper
67.2 
(214.3)
Change in overdraft balances and other
(38.3)
126.8 
Net intercompany financing activity
0 
0 
Net cash provided by (used in) financing activities
(124.7)
(323.1)
Cash and cash equivalents:
 
 
Net increase (decrease) in cash and cash equivalents
(184.7)
58.8 
Effect of foreign exchange rate changes on cash and cash equivalents
(26.1)
4.9 
Balance at beginning of year
624.6 
442.3 
Balance at end of period
$ 413.8 
$ 506.0