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For the fiscal years ended | ||||||||||||
December 31, 2011 | December 25, 2010 | December 26, 2009 | ||||||||||
(In millions) | ||||||||||||
Cash paid for interest | $ | 102.3 | $ | 87.0 | $ | 76.0 | ||||||
Cash paid for taxes | $ | 62.7 | $ | 38.4 | $ | 50.9 | ||||||
Receipt of note upon sale of property | $ | — | $ | 5.3 | $ | — | ||||||
Issuance of restricted stock, net of forfeitures | $ | 9.3 | $ | 9.8 | $ | 8.9 | ||||||
Issuance of performance shares, net of forfeitures | $ | 7.0 | $ | 7.4 | $ | 14.1 |
Balance at December 26, 2009 | $ | 10.1 | |
Additions charged to expense, net of recoveries | 5.4 | ||
Write-offs | (6.2 | ) | |
Foreign currency and other adjustments | (0.2 | ) | |
Balance at December 25, 2010 | $ | 9.1 | |
Additions charged to expense, net of recoveries | 4.1 | ||
Write-offs | (7.2 | ) | |
Foreign currency and other adjustments | 0.2 | ||
Balance at December 31, 2011 | $ | 6.2 |
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|
Year ended December 31, 2011 | |||||||||||||||||||||||||||
Canada | U.S. | U.K. | MCI | Corporate | Eliminations(1) | Consolidated | |||||||||||||||||||||
(In millions) | |||||||||||||||||||||||||||
Net sales | $ | 2,067.3 | $ | — | $ | 1,333.5 | $ | 122.6 | $ | 1.3 | $ | (9.0 | ) | $ | 3,515.7 | ||||||||||||
Interest expense | — | — | — | — | (118.7 | ) | — | (118.7 | ) | ||||||||||||||||||
Interest income | — | — | 6.3 | — | 4.4 | — | 10.7 | ||||||||||||||||||||
Income (loss) from continuing operations before income taxes | $ | 474.9 | $ | 457.9 | $ | 99.3 | $ | (33.3 | ) | $ | (224.6 | ) | $ | — | $ | 774.2 | |||||||||||
Income tax benefit (expense) | (99.4 | ) | |||||||||||||||||||||||||
Net income (loss) from continuing operations | 674.8 | ||||||||||||||||||||||||||
Less: Net (income) loss attributable to noncontrolling interests | (0.8 | ) | |||||||||||||||||||||||||
Net income (loss) from continuing operations attributable to MCBC | $ | 674.0 |
Year ended December 25, 2010 | |||||||||||||||||||||||
Canada | U.S. | U.K. | MCI | Corporate | Consolidated | ||||||||||||||||||
(In millions) | |||||||||||||||||||||||
Net sales | $ | 1,938.2 | $ | — | $ | 1,234.9 | $ | 80.0 | $ | 1.3 | $ | 3,254.4 | |||||||||||
Interest expense | — | — | — | — | (110.2 | ) | (110.2 | ) | |||||||||||||||
Interest income | — | — | 6.7 | — | 4.1 | 10.8 | |||||||||||||||||
Income (loss) from continuing operations before income taxes | $ | 454.0 | $ | 456.1 | $ | 95.3 | $ | (25.7 | ) | $ | (170.7 | ) | $ | 809.0 | |||||||||
Income tax benefit (expense) | (138.7 | ) | |||||||||||||||||||||
Net income (loss) from continuing operations | 670.3 | ||||||||||||||||||||||
Less: Net (income) loss attributable to noncontrolling interests | (2.2 | ) | |||||||||||||||||||||
Net income (loss) from continuing operations attributable to MCBC | $ | 668.1 |
Year ended December 26, 2009 | |||||||||||||||||||||||
Canada | U.S. | U.K. | MCI | Corporate | Consolidated | ||||||||||||||||||
(In millions) | |||||||||||||||||||||||
Net sales | $ | 1,732.3 | $ | — | $ | 1,226.2 | $ | 72.9 | $ | 1.0 | $ | 3,032.4 | |||||||||||
Interest expense | — | — | — | — | (96.6 | ) | (96.6 | ) | |||||||||||||||
Interest income | — | — | 8.3 | — | 2.4 | 10.7 | |||||||||||||||||
Income (loss) from continuing operations before income taxes | $ | 462.6 | $ | 382.0 | $ | 90.8 | $ | (21.6 | ) | $ | (196.3 | ) | $ | 717.5 | |||||||||
Income tax benefit (expense) | 14.7 | ||||||||||||||||||||||
Net income (loss) from continuing operations | 732.2 | ||||||||||||||||||||||
Less: Net (income) loss attributable to noncontrolling interests | (2.8 | ) | |||||||||||||||||||||
Net income (loss) from continuing operations attributable to MCBC | $ | 729.4 |
As of | ||||||||
December 31, 2011 | December 25, 2010 | |||||||
(In millions) | ||||||||
Canada | $ | 6,541.6 | $ | 6,548.9 | ||||
U.S.(1) | 2,487.9 | 2,574.1 | ||||||
U.K. | 2,293.4 | 2,276.2 | ||||||
MCI(1) | 151.7 | 86.7 | ||||||
Corporate(1) | 948.9 | 1,211.1 | ||||||
Discontinued operations | 0.3 | 0.6 | ||||||
Consolidated total assets | $ | 12,423.8 | $ | 12,697.6 |
(1) | The decrease in Corporate is primarily due to the reduction in cash balances. The decrease in the U.S. is driven primarily by our share of the change in MillerCoors accumulated other comprehensive income ("AOCI") thereby decreasing our Investment in MillerCoors . These decreases are partially offset by the increase in MCI, which is primarily due to our increased investment in our International markets, such as our acquisition of a controlling stake in MC Cobra India. |
For the years ended | |||||||||||
December 31, 2011 | December 25, 2010 | December 26, 2009 | |||||||||
(In millions) | |||||||||||
Depreciation and amortization(1): | |||||||||||
Canada | $ | 125.0 | $ | 122.3 | $ | 120.6 | |||||
United Kingdom | 75.6 | 67.5 | 77.6 | ||||||||
MCI | 3.2 | 0.8 | 0.2 | ||||||||
Corporate | 13.3 | 11.7 | 9.6 | ||||||||
Consolidated depreciation and amortization | $ | 217.1 | $ | 202.3 | $ | 208.0 | |||||
Capital expenditures(2): | |||||||||||
Canada | $ | 138.8 | $ | 97.8 | $ | 77.6 | |||||
United Kingdom | 80.3 | 70.0 | 64.6 | ||||||||
MCI | 12.4 | 4.2 | 0.1 | ||||||||
Corporate | 3.9 | 5.9 | 16.5 | ||||||||
Consolidated capital expenditures | $ | 235.4 | $ | 177.9 | $ | 158.8 |
(1) | Depreciation and amortization amounts do not reflect amortization of bond discounts, fees, or other debt-related items. |
(2) | Capital expenditures increased in 2011 driven by the addition of a high-speed can line in our Montréal brewery. |
For the years ended | ||||||||||||
December 31, 2011 | December 25, 2010 | December 26, 2009 | ||||||||||
(In millions) | ||||||||||||
Net sales to unaffiliated customers: | ||||||||||||
Canada | $ | 1,987.4 | $ | 1,894.9 | $ | 1,687.0 | ||||||
United States and its territories | 81.3 | 44.6 | 46.3 | |||||||||
United Kingdom | 1,313.9 | 1,217.7 | 1,180.3 | |||||||||
Other foreign countries | 133.1 | 97.2 | 118.8 | |||||||||
Consolidated net sales | $ | 3,515.7 | $ | 3,254.4 | $ | 3,032.4 |
As of | ||||||||
December 31, 2011 | December 25, 2010 | |||||||
(In millions) | ||||||||
Properties(1): | ||||||||
Canada | $ | 877.5 | $ | 864.7 | ||||
United States and its territories | 35.7 | 41.8 | ||||||
United Kingdom | 456.3 | 441.9 | ||||||
Other foreign countries | 60.6 | 40.3 | ||||||
Consolidated net properties | $ | 1,430.1 | $ | 1,388.7 |
(1) | Includes net properties based on geographic location. The increase to Other foreign countries is primarily attributable to our acquisition of a controlling stake in MC Cobra India. |
|
As of | ||||||||
December 31, 2011 | December 31, 2010 | |||||||
Current assets | $ | 810.9 | $ | 815.9 | ||||
Non-current assets | 8,861.7 | 8,972.1 | ||||||
Total assets | $ | 9,672.6 | $ | 9,788.0 | ||||
Current liabilities | $ | 922.7 | $ | 932.9 | ||||
Non-current liabilities | 1,471.3 | 1,273.4 | ||||||
Total liabilities | 2,394.0 | 2,206.3 | ||||||
Noncontrolling interests | 36.7 | 30.5 | ||||||
Owners' equity | 7,241.9 | 7,551.2 | ||||||
Total liabilities and equity | $ | 9,672.6 | $ | 9,788.0 |
For the years ended | |||||||||||
December 31, 2011 | December 31, 2010 | December 31, 2009 | |||||||||
Net sales | $ | 7,550.2 | $ | 7,570.6 | $ | 7,574.3 | |||||
Cost of goods sold | (4,647.9 | ) | (4,686.3 | ) | (4,720.9 | ) | |||||
Gross profit | $ | 2,902.3 | $ | 2,884.3 | $ | 2,853.4 | |||||
Operating income(1) | $ | 1,020.3 | $ | 1,078.9 | $ | 866.1 | |||||
Net income attributable to MillerCoors(1) | $ | 1,003.8 | $ | 1,057.0 | $ | 842.8 |
(1) | Fiscal year 2011 includes special charges of $60.0 million for a write-down in the value of the Sparks brand and a $50.9 million charge resulting from the planned assumption of the Milwaukee Brewery Worker's Pension Plan, an underfunded multi-employer pension plan. Fiscal year 2010 and fiscal year 2009 include special charges of $30.3 million and $49.4 million, respectively, primarily driven by pension curtailment losses and integration costs. |
For the years ended | ||||||||||||
December 31, 2011 | December 31, 2010 | December 31, 2009 | ||||||||||
Net income attributable to MillerCoors | $ | 1,003.8 | $ | 1,057.0 | $ | 842.8 | ||||||
MCBC economic interest | 42 | % | 42 | % | 42 | % | ||||||
MCBC proportionate share of MillerCoors net income | 421.6 | 443.9 | 354.0 | |||||||||
MillerCoors accounting policy elections(1) | — | — | 7.3 | |||||||||
Amortization of the difference between MCBC contributed cost basis and proportional share of the underlying equity in net assets of MillerCoors(2) | 35.4 | 6.9 | 11.7 | |||||||||
Share-based compensation adjustment(3) | 0.9 | 5.3 | 9.0 | |||||||||
Equity income in MillerCoors | $ | 457.9 | $ | 456.1 | $ | 382.0 |
(1) | MillerCoors made its initial accounting policy elections upon formation, impacting certain asset and liability balances contributed by MCBC. Our investment basis in MillerCoors is based on the book value of the net assets we contributed to it. These adjustments reflect the impact on our investment in MillerCoors as a result of the differences resulting from accounting policy elections, the most significant of which was MillerCoors' election to value our contributed inventories using the first in, first out (FIFO) method, rather than the last in, first out (LIFO) method, which had been applied by us prior to the formation of MillerCoors, the impact of which was fully amortized in early 2009. |
(2) | 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 proportional share of underlying equity (42%) of MillerCoors (contributed by both CBC and Miller) by approximately $589 million as of December 31, 2011. This difference, with the exception of goodwill and land, is being amortized as additional equity income over the remaining useful lives of the contributed long-lived amortizing assets. During the third quarter of 2011, MillerCoors recognized an impairment charge of $60.0 million associated with its Sparks brand intangible asset. Our portion, $25.2 million, or 42% of the charge, is offset by an adjustment to our basis amortization above. This adjustment represents accelerated amortization attributable to our proportionate share of the underlying basis of the asset class in which Sparks was contributed. The current basis difference combined with the $35.0 million recorded in 2008 and 2009 related to differences resulting from accounting policy elections must be considered to reconcile MillerCoors equity to our investment in MillerCoors. |
(3) | The net adjustment is to record all share-based compensation associated with pre-existing equity awards to be settled in Class B common stock held by former CBC employees now employed by MillerCoors and to eliminate all share-based compensation impacts related to pre-existing SABMiller plc equity awards held by former Miller employees now employed by MillerCoors. As of the end of the second quarter of 2011, the share-based awards granted to former CBC employees now employed by MillerCoors became fully vested. As such, no further adjustments will be recorded related to these awards. |
Amount | |||
(In millions) | |||
2012 | $ | 135.1 | |
2013 | 139.1 | ||
2014 | 143.3 | ||
2015 | 147.6 | ||
2016 | 152.0 | ||
Thereafter | 277.6 | ||
Total | $ | 994.7 |
For the years ended | ||||||||||||
December 31, 2011 | December 25, 2010 | December 26, 2009 | ||||||||||
Net sales | $ | 840.5 | $ | 810.4 | $ | 996.9 | ||||||
Cost of goods sold(1) | (747.7 | ) | (700.9 | ) | (704.6 | ) | ||||||
Gross profit | $ | 92.8 | $ | 109.5 | $ | 292.3 | ||||||
Operating income | $ | 51.1 | $ | 48.8 | $ | 47.0 | ||||||
Net Income | $ | 42.4 | $ | 40.7 | $ | 22.0 |
(1) | Historical amounts adjusted to reflect current presentation. |
As of | ||||||||
December 31, 2011 | December 25, 2010 | |||||||
Current assets | $ | 311.2 | $ | 410.9 | ||||
Non-current assets | 370.8 | 358.1 | ||||||
Total assets | $ | 682.0 | $ | 769.0 | ||||
Current liabilities | $ | 379.4 | $ | 670.2 | ||||
Non-current liabilities | 271.6 | 99.3 | ||||||
Total liabilities | 651.0 | 769.5 | ||||||
Owners' equity | 31.0 | (0.5 | ) | |||||
Total liabilities and owners' equity | $ | 682.0 | $ | 769.0 |
For the years ended/As of | ||||||||||||||||||||||||||||||||
December 31, 2011 | December 25, 2010 | December 26, 2009 | ||||||||||||||||||||||||||||||
Total Assets(1) | Revenues(2) | Pre-tax income | Total Assets(1) | Revenues(2) | Pre-tax income | Revenues(2) | Pre-tax income | |||||||||||||||||||||||||
(In millions) | ||||||||||||||||||||||||||||||||
BRI | $ | — | $ | — | $ | — | $ | — | $ | — | $ | — | $ | 40.4 | $ | — | ||||||||||||||||
Grolsch | $ | 20.4 | $ | 27.3 | $ | 3.9 | $ | 14.1 | $ | 30.1 | $ | 4.3 | $ | 37.8 | $ | 5.7 | ||||||||||||||||
Cobra U.K. | $ | 31.6 | $ | 40.1 | $ | 6.9 | $ | 32.7 | $ | 39.2 | $ | 6.9 | $ | 21.2 | $ | 1.9 | ||||||||||||||||
Granville Island(3) | $ | — | $ | — | $ | — | $ | — | $ | — | $ | — | $ | 4.6 | $ | 0.2 |
(1) | Excludes receivables from the Company. |
(2) | Substantially all such sales for Grolsch are made to the Company, and as such, are eliminated in consolidation. The BRI revenues for 2009 represent the first two months prior to deconsolidation. Revenues for Cobra U.K. for the fiscal year 2009 reflect 6 months of activity. |
(3) | During the second quarter of 2010, we acquired 100% of the outstanding stock and, as a result, Granville Island is no longer classified as a VIE. |
|
For the years ended | ||||||||||||
December 31, 2011 | December 25, 2010 | December 26, 2009 | ||||||||||
(In millions) | ||||||||||||
Gain related to settlement of a portion of our indemnity liabilities to FEMSA (See "Note 20") | $ | — | $ | 42.6 | $ | — | ||||||
Loss related to adjustment in legal reserves due to changes in estimates and foreign exchange gains and losses | (0.4 | ) | (1.5 | ) | — | |||||||
Adjustments to indemnity liabilities due to changes in estimates and foreign exchange gains and losses | 2.7 | (1.5 | ) | (9.0 | ) | |||||||
Income (loss) from discontinued operations, net of tax | $ | 2.3 | $ | 39.6 | $ | (9.0 | ) |
|
For the years ended | |||||||||||
December 31, 2011 | December 25, 2010 | December 26, 2009 | |||||||||
(In millions) | |||||||||||
Gain from Foster's swap and related financial instruments(1) | $ | 0.8 | $ | 47.9 | $ | 0.7 | |||||
Gain (loss) from foreign exchange and derivatives | (6.9 | ) | (3.4 | ) | 5.4 | ||||||
Gain on sale of Montréal Canadiens(2) | — | — | 46.0 | ||||||||
Equity income (loss) of Montréal Canadiens | — | — | (1.2 | ) | |||||||
Environmental reserve | (0.2 | ) | 0.2 | (1.5 | ) | ||||||
Loss on non-operating leases | (0.9 | ) | (1.0 | ) | (3.6 | ) | |||||
Loss related to the change in designation of cross currency swaps(3) | (6.7 | ) | — | — | |||||||
Other, net(4) | 2.9 | 0.2 | 3.6 | ||||||||
Other income (expense), net | $ | (11.0 | ) | $ | 43.9 | $ | 49.4 |
(1) | During the third quarter of 2008, we entered into a cash settled total return swap with Deutsche Bank in order to gain an economic interest exposure to Foster's Group Limited's ("Foster's") stock (ASX:FGL) (see Note 18, "Derivative Instruments and Hedging Activities"). During the third quarter of 2010, we accelerated the maturity dates of our total return swaps related to Foster's stock, and the majority of these swaps were settled prior to year end 2010. Simultaneously, we entered into a series of option contracts to limit our exposure to future changes in Foster's stock price, effectively fixing a range of settlement values for our remaining open swap positions. The remaining total return swaps and related options matured in January of 2011. Proceeds from these settlements are included within Cash flows from investing activities. |
(2) | See Note 4, "Investments" under the "Montreal Canadiens" sub-heading for further discussion. |
(3) | See Note 18, "Derivative Instruments and Hedging Activities" under "Cross Currency Swaps" sub-heading for further discussion. |
(4) | This includes gains of $1.0 million in 2011 and $0.5 million in 2010 related to sales of non-core real estate to related but unconsolidated parties. During 2010, we sold the historic Coors family home in Golden, Colorado, to the Adolph Coors Company LLC for $0.5 million and during 2011, we sold non-core real estate in Golden to MillerCoors for $1.0 million. The selling price in both instances was based on a market appraisal by an independent third party. |
|
For the years ended | ||||||||||||
December 31, 2011 | December 25, 2010 | December 26, 2009 | ||||||||||
(In millions) | ||||||||||||
Domestic | $ | 767.2 | $ | 779.3 | $ | 477.1 | ||||||
Foreign | 7.0 | 29.7 | 240.4 | |||||||||
Total | $ | 774.2 | $ | 809.0 | $ | 717.5 |
For the years ended | ||||||||||||
December 31, 2011 | December 25, 2010 | December 26, 2009 | ||||||||||
(In millions) | ||||||||||||
Current: | ||||||||||||
Federal | $ | 16.0 | $ | 7.5 | $ | (51.3 | ) | |||||
State | 3.9 | 24.6 | 9.6 | |||||||||
Foreign | 24.0 | 38.7 | (100.8 | ) | ||||||||
Total current tax expense (benefit) | $ | 43.9 | $ | 70.8 | $ | (142.5 | ) | |||||
Deferred: | ||||||||||||
Federal | $ | 72.6 | $ | 86.9 | $ | 87.0 | ||||||
State | 3.9 | 5.2 | 14.7 | |||||||||
Foreign | (21.0 | ) | (24.2 | ) | 26.1 | |||||||
Total deferred tax expense (benefit) | $ | 55.5 | $ | 67.9 | $ | 127.8 | ||||||
Total income tax expense (benefit) from continuing operations | $ | 99.4 | $ | 138.7 | $ | (14.7 | ) |
For the years ended | |||||||||
December 31, 2011 | December 25, 2010 | December 26, 2009 | |||||||
Statutory Federal income tax rate | 35.0 | % | 35.0 | % | 35.0 | % | |||
State income taxes, net of federal benefits | 1.6 | % | 2.0 | % | 2.0 | % | |||
Effect of foreign tax rates | (21.4 | )% | (20.2 | )% | (21.7 | )% | |||
Effect of foreign tax law and rate changes | (0.4 | )% | 0.7 | % | (2.7 | )% | |||
Effect of unrecognized tax benefits | (1.1 | )% | 0.8 | % | (18.8 | )% | |||
Other, net | (0.9 | )% | (1.2 | )% | 4.2 | % | |||
Effective tax rate | 12.8 | % | 17.1 | % | (2.0 | )% |
As of | ||||||||
December 31, 2011 | December 25, 2010 | |||||||
(In millions) | ||||||||
Current deferred tax assets: | ||||||||
Compensation related obligations | $ | 3.5 | $ | 0.6 | ||||
Accrued liabilities and other | 47.3 | 46.5 | ||||||
Tax credit carryforward | — | 5.4 | ||||||
Valuation allowance | (6.1 | ) | — | |||||
Other | 2.2 | 0.2 | ||||||
Total current deferred tax assets | 46.9 | 52.7 | ||||||
Current deferred tax liabilities: | ||||||||
Partnership investments | 192.6 | 259.3 | ||||||
Balance sheet reserves and accruals | 4.0 | 13.0 | ||||||
Total current deferred tax liabilities | 196.6 | 272.3 | ||||||
Net current deferred tax assets(1) | — | — | ||||||
Net current deferred tax liabilities(1) | $ | 149.7 | $ | 219.6 |
As of | ||||||||
December 31, 2011 | December 25, 2010 | |||||||
(In millions) | ||||||||
Non-current deferred tax assets: | ||||||||
Compensation related obligations | $ | 12.7 | $ | 20.0 | ||||
Postretirement benefits | 191.5 | 149.9 | ||||||
Foreign exchange losses | 152.0 | 212.1 | ||||||
Convertible debt | 1.0 | 1.3 | ||||||
Tax loss carryforwards | 32.5 | 79.9 | ||||||
Intercompany financing | 13.2 | 14.9 | ||||||
Partnership investments | 13.1 | 23.0 | ||||||
Accrued liabilities and other | 21.8 | 20.5 | ||||||
Valuation allowance | (22.5 | ) | (39.0 | ) | ||||
Total non-current deferred tax assets | 415.3 | 482.6 | ||||||
Non-current deferred tax liabilities: | ||||||||
Fixed assets | 117.8 | 119.8 | ||||||
Partnership investments | 19.8 | 49.7 | ||||||
Intangibles | 579.5 | 589.1 | ||||||
Other | 3.9 | 2.5 | ||||||
Total non-current deferred tax liabilities | 721.0 | 761.1 | ||||||
Net non-current deferred tax asset(1) | $ | — | $ | — | ||||
Net non-current deferred tax liability(1) | $ | 305.7 | $ | 278.5 |
(1) | Our net deferred tax assets and liabilities are presented and composed of the following: |
As of | ||||||||
December 31, 2011 | December 25, 2010 | |||||||
(In millions) | ||||||||
Domestic net current deferred tax liabilities | $ | 161.3 | $ | 152.6 | ||||
Foreign net current deferred tax assets | 11.6 | — | ||||||
Foreign net current deferred tax liabilities | — | 67.0 | ||||||
Net current deferred tax liabilities | $ | 149.7 | $ | 219.6 | ||||
Domestic net non-current deferred tax assets | $ | 149.9 | $ | 188.2 | ||||
Foreign net non-current deferred tax liabilities | 455.6 | 466.7 | ||||||
Net non-current deferred tax liabilities | $ | 305.7 | $ | 278.5 |
For the years ended | ||||||||||||
December 31, 2011 | December 25, 2010 | December 26, 2009 | ||||||||||
(In millions) | ||||||||||||
Balance at beginning of year | $ | 84.9 | $ | 72.3 | $ | 206.1 | ||||||
Additions for tax positions related to the current year | 9.6 | 6.9 | 26.0 | |||||||||
Additions for tax positions of prior years | 4.3 | 6.5 | 1.8 | |||||||||
Reductions for tax positions of prior years | (0.1 | ) | (1.0 | ) | (74.1 | ) | ||||||
Settlements | (1.5 | ) | (0.8 | ) | (11.4 | ) | ||||||
Release due to statute expiration | (25.6 | ) | (1.6 | ) | (92.1 | ) | ||||||
Foreign currency adjustment | (0.9 | ) | 2.6 | 16.0 | ||||||||
Balance at end of year | $ | 70.7 | $ | 84.9 | $ | 72.3 |
|
For the years ended | |||||||||||
December 31, 2011 | December 25, 2010 | December 26, 2009 | |||||||||
(In millions) | |||||||||||
Canada—Restructuring, exit and other related costs associated with the Montréal and Edmonton breweries(1) | $ | 0.6 | $ | 1.0 | $ | 7.6 | |||||
Canada—Special termination benefits(2) | 5.2 | 3.2 | — | ||||||||
Canada—Software abandonment(3) | — | 12.8 | — | ||||||||
Canada—Pension curtailment(4) | — | — | 5.3 | ||||||||
Canada—Flood related costs, net(5) | 0.2 | — | — | ||||||||
Canada—BRI Loan Guarantee Adjustment(6) | (2.0 | ) | — | — | |||||||
Canada—Fixed asset adjustment(7) | 7.6 | — | — | ||||||||
U.K.—Release of non-income-related tax reserve(8) | (2.3 | ) | 0.4 | 10.4 | |||||||
U.K.—Restructuring charges and related exit costs(9) | 2.1 | 2.6 | 2.8 | ||||||||
U.K.—Other, net | (0.1 | ) | 0.1 | — | |||||||
U.K.—Costs associated with Cobra acquisition | — | — | 5.7 | ||||||||
MCI —Costs associated with other strategic initiatives | 1.0 | 1.1 | — | ||||||||
Corporate —Costs associated with other strategic initiatives | — | 0.1 | 0.9 | ||||||||
Total special items | $ | 12.3 | $ | 21.3 | $ | 32.7 |
(1) | During 2011, 2010, and 2009, we recognized expenses for restructuring costs associated with the employee terminations and impairment of assets at the Montréal and Edmonton breweries. |
(2) | During 2011, we recognized charges related to special termination benefits offered to eligible employees upon election for early retirement as collective bargaining agreements were ratified with MCC impacting the Quebec Hourly Defined Benefit pension plan. Additionally, during the first quarter of 2011 and the first half of 2010, we recognized expenses for special termination benefits related to the Ontario-Atlantic Hourly Defined Benefit pension plan. |
(3) | During 2010, a capital asset write-off and associated costs were recorded related to the abandonment of sales support software, which had been under development, as a result of a change in strategic direction relative to the use of the software. |
(4) | During 2009, we recognized a pension curtailment loss and restructuring costs associated with employee terminations at the Montréal brewery, driven by MillerCoors' decision to produce Blue Moon products at its breweries in the U.S. |
(5) | During 2011, we incurred expenses related to flood damages at our Toronto offices, which was partially offset by insurance proceeds. |
(6) | During the second quarter of 2011, we recognized a $2.0 million gain resulting from a reduction of our guarantee of BRI debt obligations, which is discussed further in Note 20 "Commitments and Contingencies". |
(7) | During the second quarter of 2011, we recognized a $7.6 million loss related to the correction of an immaterial error in prior periods to reduce Properties in the Canada segment, resulting from the performance of a fixed asset count. The impact of the error and the related correction this year is not material to any prior annual or interim financial statements and is not material to the fiscal year results for 2011. |
(8) | During 2009, we established a non-income-related tax reserve of $10.4 million that was recorded as a special item. Our current estimates indicate a range of possible loss relative to this reserve of $0 million to $22.3 million, inclusive of potential penalties and interest. The amount recorded in 2011 represents a release of a portion of this reserve as a result of a change in estimate. |
(9) | During 2011, 2010 and 2009, we recognized employee termination costs primarily related to supply chain restructuring activity resulting from on-going company-wide efforts to increase efficiency throughout the segment. |
|
Common stock issued | Exchangeable shares issued | |||||||||||
Class A | Class B(1) | Class A | Class B | |||||||||
(Share amounts in millions) | ||||||||||||
Balance at December 28, 2008 | 2.7 | 157.1 | 3.2 | 20.9 | ||||||||
Shares issued under equity compensation plans | — | 1.5 | — | — | ||||||||
Shares exchanged for common stock | (0.1 | ) | 0.8 | — | (0.7 | ) | ||||||
Balance at December 26, 2009 | 2.6 | 159.4 | 3.2 | 20.2 | ||||||||
Shares issued under equity compensation plans | — | 1.4 | — | — | ||||||||
Shares exchanged for common stock | — | 1.2 | (0.2 | ) | (1.0 | ) | ||||||
Balance at December 25, 2010 | 2.6 | 162.0 | 3.0 | 19.2 | ||||||||
Shares issued under equity compensation plans | — | 0.7 | — | — | ||||||||
Shares exchanged for common stock | — | — | — | — | ||||||||
Shares exchanged for Class B exchangeable shares | — | — | (0.1 | ) | 0.1 | |||||||
Balance at December 31, 2011 | 2.6 | 162.7 | 2.9 | 19.3 |
(1) | During 2011, we repurchased Class B common shares which results in a lower number of outstanding shares compared to issued shares. See "Share Repurchase Program" below for further discussion. For all other classes, issued shares equal outstanding shares. |
• | the issuance of any shares of Class A common stock or securities convertible into Class A common stock (other than upon the conversion of Class B common stock under circumstances provided in the Restated Certificate of Incorporation ("Certificate of Incorporation") or the exchange or redemption of Class A exchangeable shares in accordance with the terms of those exchangeable shares) or securities (other than Class B common stock) convertible into or exercisable for Class A common stock; |
• | the issuance of shares of Class B common stock (other than upon the conversion of Class A common stock under circumstances provided in our Certificate of Incorporation or the exchange or redemption of Class B exchangeable shares in accordance with the terms of those exchangeable shares) or securities (other than Class A common stock) that are convertible into or exercisable for Class B common stock, if the number of shares to be issued is equal to or greater than 20% of the number of outstanding shares of Class B common stock; |
• | the issuance of any preferred stock having voting rights other than those expressly required by Delaware law; |
• | the sale, transfer or other disposition of any capital stock (or securities convertible into or exchangeable for capital stock) of subsidiaries; |
• | the sale, transfer or other disposition of all or substantially all of the assets of the Company; and |
• | any decrease in the number of members of the Molson Coors Board of Directors to a number below 15. |
• | in the case of a cash dividend declared on a corresponding share of Molson Coors common stock, an amount in cash for each exchangeable share corresponding to the cash dividend declared on each corresponding share of Molson Coors common stock in USD or in an equivalent amount in CAD; |
• | in the case of a stock dividend declared on a corresponding share of Molson Coors common stock to be paid in shares of Molson Coors common stock, in the number of exchangeable shares of the relevant class for each exchangeable share that is equal to the number of shares of corresponding Molson Coors common stock to be paid on each corresponding share of Molson Coors common stock; or |
• | in the case of a dividend declared on a corresponding share of Molson Coors common stock in any other type of property, in the type and amount of property as is economically equivalent as determined by MCCI's Board of Directors to the type and amount of property to be paid on each corresponding share of Molson Coors common stock. |
|
As of | ||||||||
December 31, 2011 | December 25, 2010 | |||||||
(In millions) | ||||||||
Land and improvements | $ | 105.4 | $ | 102.0 | ||||
Buildings and improvements | 351.9 | 341.8 | ||||||
Machinery and equipment | 1,259.6 | 1,243.9 | ||||||
Returnable containers | 203.2 | 202.2 | ||||||
Furniture and fixtures | 277.4 | 309.2 | ||||||
Software | 112.0 | 47.9 | ||||||
Natural resource properties | 3.0 | 3.0 | ||||||
Construction in progress | 137.7 | 65.2 | ||||||
Total properties cost | 2,450.2 | 2,315.2 | ||||||
Less: accumulated depreciation | (1,020.1 | ) | (926.5 | ) | ||||
Net properties | $ | 1,430.1 | $ | 1,388.7 |
Useful Economic Lives as of December 31, 2011 | |
Buildings and improvements | 20 - 40 years |
Machinery and equipment | 3 - 25 years |
Furniture and fixtures | 3 - 10 years |
Returnable containers | 2 - 15 years |
Software | 3 - 5 years |
|
As of | ||||||||
December 31, 2011 | December 25, 2010 | |||||||
(In millions) | ||||||||
Balance at beginning of year | $ | 1,489.1 | $ | 1,475.0 | ||||
Foreign currency translation | (6.1 | ) | 5.2 | |||||
Business acquisitions | 19.7 | 8.6 | ||||||
Historical corrections (1) | (49.4 | ) | 0.3 | |||||
Balance at end of year | $ | 1,453.3 | $ | 1,489.1 |
(1) | As a result of the 2011 correction of an immaterial error in prior periods related to BRI, goodwill decreased $55.7 million. See Note 4, "Investments" under the "Brewers' Retail Inc." sub-heading for further discussion. In addition, as a result of a fixed asset count performed in Canada, goodwill was increased by $6.3 million for the assets identified as not present as of the Merger date. See Note 11, "Properties," for further discussion. |
As of | ||||||||
December 31, 2011 | December 25, 2010 | |||||||
(In millions) | ||||||||
Canada | $ | 689.5 | $ | 748.6 | ||||
United Kingdom | 746.1 | 731.4 | ||||||
MCI | 17.7 | 9.1 | ||||||
Consolidated | $ | 1,453.3 | $ | 1,489.1 |
Useful life | Gross | Accumulated amortization | Net | |||||||||||
(Years) | (In millions) | |||||||||||||
Intangible assets subject to amortization: | ||||||||||||||
Brands | 3 - 40 | $ | 316.9 | $ | (179.0 | ) | $ | 137.9 | ||||||
Distribution rights | 2 - 23 | 342.0 | (234.0 | ) | 108.0 | |||||||||
Patents and technology and distribution channels | 3 - 10 | 34.9 | (28.9 | ) | 6.0 | |||||||||
Land use rights and other | 2 - 42 | 6.5 | (0.8 | ) | 5.7 | |||||||||
Intangible assets not subject to amortization: | ||||||||||||||
Brands | Indefinite | 3,322.4 | — | 3,322.4 | ||||||||||
Distribution networks | Indefinite | 990.5 | — | 990.5 | ||||||||||
Other | Indefinite | 15.5 | — | 15.5 | ||||||||||
Total | $ | 5,028.7 | $ | (442.7 | ) | $ | 4,586.0 |
Useful life | Gross | Accumulated amortization | Net | |||||||||||
(Years) | (In millions) | |||||||||||||
Intangible assets subject to amortization: | ||||||||||||||
Brands | 3 - 40 | $ | 297.3 | $ | (159.6 | ) | $ | 137.7 | ||||||
Distribution rights | 2 - 23 | 345.8 | (221.6 | ) | 124.2 | |||||||||
Patents and technology and distribution channels | 3 - 10 | 34.6 | (25.5 | ) | 9.1 | |||||||||
Land use rights and other | 2 - 42 | 6.2 | (0.1 | ) | 6.1 | |||||||||
Intangible assets not subject to amortization: | ||||||||||||||
Brands | Indefinite | 3,359.2 | — | 3,359.2 | ||||||||||
Distribution networks | Indefinite | 1,003.3 | — | 1,003.3 | ||||||||||
Other | Indefinite | 15.5 | — | 15.5 | ||||||||||
Total | $ | 5,061.9 | $ | (406.8 | ) | $ | 4,655.1 |
Fiscal Year | Amount | ||
(In millions) | |||
2012 | $ | 34.6 | |
2013 | $ | 33.7 | |
2014 | $ | 33.7 | |
2015 | $ | 31.1 | |
2016 | $ | 34.1 |
|
As of | ||||||||
December 31, 2011 | December 25, 2010 | |||||||
(In millions) | ||||||||
Senior notes: | ||||||||
$850 million 6.375% notes due 2012(1) | $ | 44.6 | $ | 44.6 | ||||
CAD 900 million 5.0% notes due 2015(2) | 881.2 | 892.6 | ||||||
$575 million 2.5% convertible notes due 2013(3) | 575.0 | 575.0 | ||||||
CAD 500 million 3.95% Series A notes due 2017(4) | 489.6 | 495.9 | ||||||
Credit facility(5) | — | — | ||||||
Less: unamortized debt discounts and other | (30.8 | ) | (48.5 | ) | ||||
Total long-term debt (including current portion) | 1,959.6 | 1,959.6 | ||||||
Less: current portion of long-term debt | (44.7 | ) | — | |||||
Total long-term debt | $ | 1,914.9 | $ | 1,959.6 | ||||
Total fair value | $ | 2,133.6 | $ | 2,137.6 |
(1) | On May 7, 2002, CBC completed a private placement of $850 million of 6.375% senior notes, due 2012, with interest payable semi-annually. Net proceeds from the sale of the notes, after deducting estimated expenses and underwriting fees, were approximately $841 million. The notes were subsequently exchanged for publicly registered notes with the same terms. On July 11, 2007, we repurchased $625 million aggregate principal amount of those notes. On February 7, 2008, we announced a tender for repurchase of any and all of the remaining principal amount of $225 million, with the tender period running through February 14, 2008. The net costs of $12.4 million related to this extinguishment of debt and termination of related interest rate swaps was recorded in the first quarter of 2008. The amount actually repurchased was $180.4 million with $44.7 million outstanding as of December 31, 2011, which, in addition to the remaining principal amount of $44.6 million, also includes $0.1 million related to interest rate swaps transacted around this debt issuance in 2002, but were cash settled in 2008 in conjunction with the tender offer. This remaining balance relates to the outstanding principal amount and is being amortized over the remaining term of this debt. |
(2) | On September 22, 2005, Molson Coors Capital Finance ULC, a Nova Scotia entity, and Molson Coors International, LP, a Delaware partnership, both wholly owned subsidiaries of MCBC, issued 10-year and 5-year private placement debt securities totaling CAD 900 million in Canada and $300 million in the United States, bearing interest at 5.0% and at 4.85%, respectively paid semi-annually. The U.S. $300 million issue matured and was repaid on September 22, 2010. The remaining CAD 900 million offering is guaranteed by MCBC, and certain of our U.S. and Canadian subsidiaries. The securities have certain restrictions on secured borrowing, sale-leaseback transactions and the sale of assets, all of which we were in compliance at December 31, 2011, and December 25, 2010. The CAD 900 million issue was subsequently exchanged for Canadian publicly registered notes maturing on September 22, 2015. |
(3) | On June 15, 2007, MCBC issued in a public offering $575 million of 2.5% Convertible Senior Notes (the "Notes") payable semi-annually in arrears. The Notes are senior unsecured obligations and rank equal in rights of payment with all of our other senior unsecured debt and senior to all of our future subordinated debt. The Notes are guaranteed by MCBC and certain of our U.S. and Canadian subsidiaries. The Notes mature on July 30, 2013, unless earlier converted or terminated, subject to certain conditions, as noted below. The Notes contain certain customary anti-dilution and make-whole provisions to protect holders of the Notes as defined in the Indenture. |
• | during any calendar quarter, if the closing sales price of our Class B common stock for at least 20 trading days in the period of 30 consecutive trading days ending on the last trading day of the calendar quarter preceding the quarter in which the conversion occurs is more than 130% of the conversion price of the Notes in effect on that last trading day; |
• | during the ten consecutive trading day period following any five consecutive trading day period in which the trading price for the Notes for each such trading day was less than 95% of the closing sale price of our Class B common stock on such date multiplied by the then current conversion rate; or |
• | if we make certain significant distributions to holders of our Class B common stock, we enter into specified corporate transactions or our Class B common stock ceases to be approved for listing on the New York Stock Exchange and is not listed for trading purposes on a U.S. national securities exchange. |
(4) | During the fourth quarter of 2010, our wholly owned subsidiary, Molson Coors International LP, completed a 7-year CAD 500 million 3.95% fixed rate Series A Notes private placement in Canada. These notes resulted in net proceeds of CAD 496.6 million after underwriting fees and being issued at a discount of CAD 1.6 million. The Series A Notes will mature on October 6, 2017. The notes are guaranteed by MCBC and certain U.S. and Canadian subsidiaries of the Company and rank equally with the Company's other outstanding notes and credit facility. |
(5) | During the second quarter of 2011, we terminated our $750 million revolving multicurrency bank credit facility, which was scheduled to expire in August 2011. Additionally, in connection with this termination, we entered into an agreement for a 4-year revolving multicurrency credit facility of $400 million, which provides a $100 million sub-facility available for the issuance of letters of credit. We incurred $2.2 million of issuance costs and up-front fees related to this agreement, which are being amortized over the term of the facility. There were no outstanding borrowings on the $400 million credit facility as of December 31, 2011. |
Amount | |||
(In millions) | |||
2012 | $ | 46.9 | |
2013 | 575.0 | ||
2014 | — | ||
2015 | 881.2 | ||
2016 | — | ||
Thereafter | 489.6 | ||
Total | $ | 1,992.7 |
For the years ended | ||||||||||||
December 31, 2011 | December 25, 2010 | December 26, 2009 | ||||||||||
(In millions) | ||||||||||||
Interest incurred(1) | $ | 121.0 | $ | 111.4 | $ | 99.3 | ||||||
Interest capitalized | (2.3 | ) | (1.2 | ) | (2.7 | ) | ||||||
Interest expensed | $ | 118.7 | $ | 110.2 | $ | 96.6 |
(1) | Interest incurred includes non-cash interest of $17.5 million, $16.9 million and $16.4 million for the fiscal years 2011, 2010 and 2009, respectively. |
|
MCBC shareholders | |||||||||||||||||||||||
Foreign currency translation adjustments | Gain (loss) on derivative instruments | Pension and Postretirement Benefits adjustments | Equity Method Investments | Accumulated other comprehensive income (loss) | Noncontrolling interest | ||||||||||||||||||
(In millions) | |||||||||||||||||||||||
As of December 28, 2008 | $ | 170.1 | $ | 35.3 | $ | (365.6 | ) | $ | (211.2 | ) | $ | (371.4 | ) | $ | (25.4 | ) | |||||||
Foreign currency translation adjustments | 468.3 | — | — | — | 468.3 | — | |||||||||||||||||
Unrealized gain (loss) on derivative instruments | — | (42.3 | ) | — | — | (42.3 | ) | — | |||||||||||||||
Reclassification adjustment on derivative instruments | — | (15.7 | ) | — | — | (15.7 | ) | — | |||||||||||||||
Pension and other postretirement benefit adjustments | — | — | (360.3 | ) | — | (360.3 | ) | — | |||||||||||||||
Contribution to MillerCoors | — | — | — | 143.8 | 143.8 | — | |||||||||||||||||
Ownership share of MillerCoors, other comprehensive income (loss) | — | — | — | (32.2 | ) | (32.2 | ) | — | |||||||||||||||
Pension and other postretirement benefit adjustments related to BRI deconsolidation | — | — | 33.3 | — | 33.3 | 36.5 | |||||||||||||||||
Tax benefit (expense) | 146.4 | 18.7 | 87.0 | (54.9 | ) | 197.2 | (11.1 | ) | |||||||||||||||
As of December 26, 2009 | $ | 784.8 | $ | (4.0 | ) | $ | (605.6 | ) | $ | (154.5 | ) | $ | 20.7 | $ | — | ||||||||
Foreign currency translation adjustments | 53.8 | — | — | — | 53.8 | — | |||||||||||||||||
Unrealized gain (loss) on derivative instruments | — | (18.6 | ) | — | — | (18.6 | ) | — | |||||||||||||||
Reclassification adjustment on derivative instruments | — | 7.1 | — | — | 7.1 | — | |||||||||||||||||
Pension and other postretirement benefit adjustments | — | — | 147.5 | — | 147.5 | — | |||||||||||||||||
Ownership share of MillerCoors, other comprehensive loss | — | — | — | (52.8 | ) | (52.8 | ) | — | |||||||||||||||
Ownership share of other unconsolidated subsidiaries' other comprehensive income (loss) | — | — | — | (39.2 | ) | (39.2 | ) | — | |||||||||||||||
Tax benefit (expense) | 67.7 | 3.9 | (39.3 | ) | 20.3 | 52.6 | — | ||||||||||||||||
As of December 25, 2010 | $ | 906.3 | $ | (11.6 | ) | $ | (497.4 | ) | $ | (226.2 | ) | $ | 171.1 | $ | — | ||||||||
Foreign currency translation adjustments | (49.6 | ) | — | — | — | (49.6 | ) | — | |||||||||||||||
Unrealized gain (loss) on derivative instruments | — | (2.0 | ) | — | — | (2.0 | ) | — | |||||||||||||||
Reclassification adjustment on derivative instruments | — | 14.9 | — | — | 14.9 | — | |||||||||||||||||
Pension and other postretirement benefit adjustments | — | — | (242.0 | ) | — | (242.0 | ) | — | |||||||||||||||
Ownership share of MillerCoors, other comprehensive loss | — | — | — | (103.4 | ) | (103.4 | ) | — | |||||||||||||||
Ownership share of other unconsolidated subsidiaries' other comprehensive income (loss) | — | — | — | (2.8 | ) | (2.8 | ) | — | |||||||||||||||
Tax benefit (expense) | (18.1 | ) | 0.4 | 62.6 | 39.2 | 84.1 | — | ||||||||||||||||
As of December 31, 2011 | $ | 838.6 | $ | 1.7 | $ | (676.8 | ) | $ | (293.2 | ) | $ | (129.7 | ) | $ | — |
|
For the year ended December 31, 2011 | |||||||||||||||||||
Canada plans | U.S. plan | U.K. plan | MCI plan | Consolidated | |||||||||||||||
(In millions) | |||||||||||||||||||
Components of net periodic pension cost (benefit): | |||||||||||||||||||
Service cost—benefits earned during the year | $ | 18.8 | $ | — | $ | — | — | $ | 18.8 | ||||||||||
Interest cost on projected benefit obligation | 72.4 | — | 108.1 | — | 180.5 | ||||||||||||||
Expected return on plan assets | (73.9 | ) | — | (125.5 | ) | — | (199.4 | ) | |||||||||||
Amortization of prior service cost | 0.8 | — | — | — | 0.8 | ||||||||||||||
Amortization of net actuarial loss | 9.4 | — | 10.8 | — | 20.2 | ||||||||||||||
Less expected participant contributions | (1.6 | ) | — | — | — | (1.6 | ) | ||||||||||||
Net periodic pension cost (benefit) | $ | 25.9 | $ | — | $ | (6.6 | ) | $ | — | $ | 19.3 |
For the year ended December 25, 2010 | |||||||||||||||||||
Canada plans | U.S. plan | U.K. plan | MCI plan | Consolidated | |||||||||||||||
(In millions) | |||||||||||||||||||
Components of net periodic pension cost (benefit): | |||||||||||||||||||
Service cost—benefits earned during the year | $ | 17.4 | $ | — | $ | — | $ | — | $ | 17.4 | |||||||||
Interest cost on projected benefit obligation | 71.8 | 0.4 | 116.1 | — | 188.3 | ||||||||||||||
Expected return on plan assets | (70.1 | ) | — | (109.8 | ) | — | (179.9 | ) | |||||||||||
Amortization of prior service cost | 0.8 | (0.1 | ) | — | — | 0.7 | |||||||||||||
Amortization of net actuarial loss | 1.3 | — | 12.3 | — | 13.6 | ||||||||||||||
Curtailment loss | 1.8 | — | — | — | 1.8 | ||||||||||||||
Less expected participant and National Insurance contributions | (2.0 | ) | — | — | — | (2.0 | ) | ||||||||||||
Net periodic pension cost (benefit) | $ | 21.0 | $ | 0.3 | $ | 18.6 | $ | — | $ | 39.9 |
For the year ended December 26, 2009 | |||||||||||||||||||
Canada plans | U.S. plan | U.K. plan | MCI plan | Consolidated | |||||||||||||||
(In millions) | |||||||||||||||||||
Components of net periodic pension cost (benefit): | |||||||||||||||||||
Service cost—benefits earned during the year | $ | 15.0 | $ | — | $ | 4.6 | — | $ | 19.6 | ||||||||||
Interest cost on projected benefit obligation | 69.5 | 0.4 | 107.6 | — | 177.5 | ||||||||||||||
Expected return on plan assets | (68.3 | ) | — | (122.3 | ) | — | (190.6 | ) | |||||||||||
Amortization of prior service cost | 0.7 | — | — | — | 0.7 | ||||||||||||||
Amortization of net actuarial loss | 0.1 | 0.4 | — | — | 0.5 | ||||||||||||||
Special termination benefits | 5.3 | — | — | — | 5.3 | ||||||||||||||
Less expected participant and National Insurance contributions | (1.9 | ) | — | (0.5 | ) | — | (2.4 | ) | |||||||||||
Net periodic pension cost | $ | 20.4 | $ | 0.8 | $ | (10.6 | ) | $ | — | $ | 10.6 |
As of December 31, 2011 | |||||||||||||||||||||||||||
Underfunded | Overfunded | ||||||||||||||||||||||||||
Canada plans | U.S. plan | U.K. plan | MCI plan | Total | Canada plans | Consolidated | |||||||||||||||||||||
(In millions) | |||||||||||||||||||||||||||
Change in projected benefit obligation: | |||||||||||||||||||||||||||
Prior year projected benefit obligation | $ | 777.4 | $ | 7.8 | $ | 2,000.9 | — | $ | 2,786.1 | $ | 584.9 | $ | 3,371.0 | ||||||||||||||
Changes in current year (Underfunded)/Overfunded position | 235.6 | — | — | — | 235.6 | (235.6 | ) | — | |||||||||||||||||||
Service cost, net of expected employee contributions | 14.7 | — | — | — | 14.7 | 2.6 | 17.3 | ||||||||||||||||||||
Interest cost | 54.8 | — | 108.1 | — | 162.9 | 17.6 | 180.5 | ||||||||||||||||||||
Actual employee contributions | 1.5 | — | — | — | 1.5 | — | 1.5 | ||||||||||||||||||||
Actuarial loss (gain) | 98.8 | — | 118.6 | 1.5 | 218.9 | 24.4 | 243.3 | ||||||||||||||||||||
Benefits paid | (62.3 | ) | — | (99.1 | ) | — | (161.4 | ) | (30.4 | ) | (191.8 | ) | |||||||||||||||
Adjustment due to change in historical accounting | — | (7.8 | ) | — | 2.0 | (5.8 | ) | — | (5.8 | ) | |||||||||||||||||
Foreign currency exchange rate change | (16.4 | ) | — | 8.9 | 0.3 | (7.2 | ) | (4.9 | ) | (12.1 | ) | ||||||||||||||||
Projected benefit obligation at end of year | $ | 1,104.1 | $ | — | $ | 2,137.4 | $ | 3.8 | $ | 3,245.3 | $ | 358.6 | $ | 3,603.9 | |||||||||||||
Actuarial present value of accumulated benefit obligation | $ | 1,103.0 | $ | — | $ | 2,137.5 | $ | 3.1 | $ | 3,243.6 | $ | 357.7 | $ | 3,601.3 | |||||||||||||
Change in plan assets: | |||||||||||||||||||||||||||
Prior year fair value of assets | $ | 642.9 | $ | — | $ | 1,821.1 | — | $ | 2,464.0 | $ | 656.8 | $ | 3,120.8 | ||||||||||||||
Changes in current year (Underfunded)/Overfunded position | 242.0 | — | — | — | 242.0 | (242.0 | ) | — | |||||||||||||||||||
Actual return on plan assets | 45.0 | — | 111.9 | — | 156.9 | 50.2 | 207.1 | ||||||||||||||||||||
Employer contributions | 9.0 | — | — | — | 9.0 | 4.3 | 13.3 | ||||||||||||||||||||
Actual employee contributions | 1.5 | — | — | — | 1.5 | — | 1.5 | ||||||||||||||||||||
Benefits and plan expenses paid | (62.3 | ) | — | (105.5 | ) | — | (167.8 | ) | (30.4 | ) | (198.2 | ) | |||||||||||||||
Foreign currency exchange rate change | (11.0 | ) | — | 11.5 | — | 0.5 | (6.1 | ) | (5.6 | ) | |||||||||||||||||
Fair value of plan assets at end of year | $ | 867.1 | $ | — | $ | 1,839.0 | — | $ | 2,706.1 | $ | 432.8 | $ | 3,138.9 | ||||||||||||||
Funded status: | |||||||||||||||||||||||||||
Projected benefit obligation at end of year | $ | (1,104.1 | ) | $ | — | $ | (2,137.4 | ) | $ | (3.8 | ) | $ | (3,245.3 | ) | $ | (358.6 | ) | $ | (3,603.9 | ) | |||||||
Fair value of plan assets at end of year | 867.1 | — | 1,839.0 | — | 2,706.1 | 432.8 | 3,138.9 | ||||||||||||||||||||
Funded status—(Underfunded)/Overfunded | (237.0 | ) | — | (298.4 | ) | (3.8 | ) | (539.2 | ) | 74.2 | (465.0 | ) | |||||||||||||||
Less: noncontrolling interests | — | — | — | — | — | — | — | ||||||||||||||||||||
Funded status after noncontrolling interests—(Underfunded)/Overfunded | $ | (237.0 | ) | $ | — | $ | (298.4 | ) | $ | (3.8 | ) | $ | (539.2 | ) | $ | 74.2 | $ | (465.0 | ) | ||||||||
Amounts recognized in the Consolidated Balance Sheet: | |||||||||||||||||||||||||||
Other assets | $ | — | $ | — | $ | — | $ | — | $ | — | $ | 74.2 | $ | 74.2 | |||||||||||||
Accrued expenses and other liabilities | (1.9 | ) | — | — | (0.5 | ) | (2.4 | ) | — | (2.4 | ) | ||||||||||||||||
Pension and postretirement benefits | (235.1 | ) | — | (298.4 | ) | (3.3 | ) | (536.8 | ) | — | (536.8 | ) | |||||||||||||||
Net amounts recognized | $ | (237.0 | ) | $ | — | $ | (298.4 | ) | (3.8 | ) | $ | (539.2 | ) | $ | 74.2 | $ | (465.0 | ) | |||||||||
Amounts in Accumulated Other Comprehensive Loss (Income) not yet recognized as components of net periodic pension cost or (benefit), pre-tax: | |||||||||||||||||||||||||||
Net actuarial loss (gain) | $ | 295.9 | $ | — | $ | 731.2 | $ | 1.6 | $ | 1,028.7 | $ | (29.4 | ) | $ | 999.3 | ||||||||||||
Net prior service cost | 3.7 | — | — | — | 3.7 | — | 3.7 | ||||||||||||||||||||
Total not yet recognized | $ | 299.6 | $ | — | $ | 731.2 | $ | 1.6 | $ | 1,032.4 | $ | (29.4 | ) | $ | 1,003.0 |
Canada plans | U.S. plan | U.K. plan | MCI plan | Total | |||||||||||||||
(In millions) | |||||||||||||||||||
Accumulated other comprehensive loss as of December 26, 2009 | $ | 175.4 | $ | 0.2 | $ | 740.9 | $ | — | $ | 916.5 | |||||||||
Amortization of prior service costs | (0.8 | ) | — | — | — | (0.8 | ) | ||||||||||||
Amortization of net actuarial loss | (1.3 | ) | — | (12.3 | ) | — | (13.6 | ) | |||||||||||
Current year actuarial loss | 6.0 | — | (118.6 | ) | — | (112.6 | ) | ||||||||||||
Foreign currency exchange rate change | (2.0 | ) | — | (1.2 | ) | — | (3.2 | ) | |||||||||||
Accumulated other comprehensive loss as of December 25, 2010 | $ | 177.3 | $ | 0.2 | $ | 608.8 | $ | — | $ | 786.3 | |||||||||
Amortization of prior service costs | (0.8 | ) | — | — | — | (0.8 | ) | ||||||||||||
Amortization of net actuarial loss | (9.4 | ) | — | (10.8 | ) | — | (20.2 | ) | |||||||||||
Current year actuarial loss (gain) | 103.3 | — | 128.5 | 1.5 | 233.3 | ||||||||||||||
Adjustment due to change in historical accounting | — | (0.2 | ) | — | — | (0.2 | ) | ||||||||||||
Foreign currency exchange rate change | (0.2 | ) | — | 4.7 | 0.1 | 4.6 | |||||||||||||
Accumulated other comprehensive loss as of December 31, 2011 | $ | 270.2 | $ | — | $ | 731.2 | $ | 1.6 | $ | 1,003.0 |
Amount | |||
(In millions) | |||
Amortization of net prior service cost | $ | 0.8 | |
Amortization of actuarial net loss | $ | 38.5 |
As of December 25, 2010 | |||||||||||||||||||||||
Underfunded | Overfunded | ||||||||||||||||||||||
Canada plans | U.S. plan | U.K. plan | Total | Canada plans | Consolidated | ||||||||||||||||||
(In millions) | |||||||||||||||||||||||
Change in projected benefit obligation: | |||||||||||||||||||||||
Prior year projected benefit obligation | $ | 904.5 | $ | 7.4 | $ | 2,153.4 | $ | 3,065.3 | $ | 343.5 | $ | 3,408.8 | |||||||||||
Changes in current year (Underfunded)/Overfunded position | (209.7 | ) | — | — | (209.7 | ) | 209.7 | — | |||||||||||||||
Service cost, net of expected employee contributions | 9.8 | — | — | 9.8 | 5.8 | 15.6 | |||||||||||||||||
Interest cost | 40.7 | 0.4 | 116.1 | 157.2 | 31.0 | 188.2 | |||||||||||||||||
Actual employee contributions | 1.9 | — | — | 1.9 | — | 1.9 | |||||||||||||||||
Special termination benefits | — | — | — | — | 1.8 | 1.8 | |||||||||||||||||
Actuarial loss (gain) | 42.8 | — | (94.2 | ) | (51.4 | ) | 11.6 | (39.8 | ) | ||||||||||||||
Benefits paid | (42.5 | ) | — | (104.1 | ) | (146.6 | ) | (41.5 | ) | (188.1 | ) | ||||||||||||
Foreign currency exchange rate change | 29.9 | — | (70.3 | ) | (40.4 | ) | 23.0 | (17.4 | ) | ||||||||||||||
Projected benefit obligation at end of year | $ | 777.4 | $ | 7.8 | $ | 2,000.9 | $ | 2,786.1 | $ | 584.9 | $ | 3,371.0 | |||||||||||
Actuarial present value of accumulated benefit obligation | $ | 776.7 | $ | 7.8 | $ | 2,000.9 | $ | 2,785.4 | $ | 583.1 | $ | 3,368.5 | |||||||||||
Change in plan assets: | |||||||||||||||||||||||
Prior year fair value of assets | $ | 748.6 | $ | — | $ | 1,645.6 | $ | 2,394.2 | $ | 388.5 | $ | 2,782.7 | |||||||||||
Changes in current year (Underfunded)/Overfunded position | (205.3 | ) | — | — | (205.3 | ) | 205.3 | — | |||||||||||||||
Actual return on plan assets | 56.9 | — | 140.2 | 197.1 | 53.8 | 250.9 | |||||||||||||||||
Employer contributions | 60.1 | — | 198.9 | 259.0 | 25.4 | 284.4 | |||||||||||||||||
Actual employee contributions | 1.9 | — | — | 1.9 | — | 1.9 | |||||||||||||||||
Benefits and plan expenses paid | (42.5 | ) | — | (107.2 | ) | (149.7 | ) | (41.5 | ) | (191.2 | ) | ||||||||||||
Foreign currency exchange rate change | 23.2 | — | (56.4 | ) | (33.2 | ) | 25.3 | (7.9 | ) | ||||||||||||||
Fair value of plan assets at end of year | $ | 642.9 | $ | — | $ | 1,821.1 | $ | 2,464.0 | $ | 656.8 | $ | 3,120.8 | |||||||||||
Funded status: | |||||||||||||||||||||||
Projected benefit obligation at end of year | $ | (777.4 | ) | $ | (7.8 | ) | $ | (2,000.9 | ) | $ | (2,786.1 | ) | $ | (584.9 | ) | $ | (3,371.0 | ) | |||||
Fair value of plan assets at end of year | 642.9 | — | 1,821.1 | 2,464.0 | 656.8 | 3,120.8 | |||||||||||||||||
Funded status—(Underfunded)/Overfunded | (134.5 | ) | (7.8 | ) | (179.8 | ) | (322.1 | ) | 71.9 | (250.2 | ) | ||||||||||||
Less: noncontrolling interests | — | — | — | — | — | — | |||||||||||||||||
Funded status after noncontrolling interests—(Underfunded)/Overfunded | $ | (134.5 | ) | $ | (7.8 | ) | $ | (179.8 | ) | $ | (322.1 | ) | $ | 71.9 | $ | (250.2 | ) | ||||||
Amounts recognized in the Consolidated Balance Sheet: | |||||||||||||||||||||||
Other assets | $ | — | $ | — | $ | — | $ | — | $ | 71.9 | $ | 71.9 | |||||||||||
Accrued expenses and other liabilities | (1.6 | ) | — | — | (1.6 | ) | — | (1.6 | ) | ||||||||||||||
Pension and postretirement benefits | (132.9 | ) | (7.8 | ) | (179.8 | ) | (320.5 | ) | — | (320.5 | ) | ||||||||||||
Net amounts recognized | $ | (134.5 | ) | $ | (7.8 | ) | $ | (179.8 | ) | $ | (322.1 | ) | $ | 71.9 | $ | (250.2 | ) | ||||||
Amounts in Accumulated Other Comprehensive Loss (Income) not yet recognized as components of net periodic pension cost or (benefit), pre-tax: | |||||||||||||||||||||||
Net actuarial loss (gain) | $ | 149.2 | $ | 0.4 | $ | 608.8 | $ | 758.4 | $ | 23.9 | $ | 782.3 | |||||||||||
Net prior service cost | 0.7 | (0.2 | ) | — | 0.5 | 3.5 | 4.0 | ||||||||||||||||
Total not yet recognized | $ | 149.9 | $ | 0.2 | $ | 608.8 | $ | 758.9 | $ | 27.4 | $ | 786.3 |
For the years ended | |||||||||||||||||||||
December 31, 2011 | December 25, 2010 | ||||||||||||||||||||
Canada plans | U.S. plan | U.K. plan | MCI plan | Canada plans | U.S. plan | U.K. plan | MCI plan | ||||||||||||||
Weighted average assumptions: | |||||||||||||||||||||
Settlement discount rate(1) | 4.56 | % | N/A | 4.65 | % | 1.30 | % | 5.28 | % | 3.60 | % | 5.35 | % | N/A | |||||||
Rate of compensation increase(2) | 2.50 | % | N/A | N/A | 2.00 | % | 3.00 | % | N/A | N/A | N/A | ||||||||||
Expected return on plan assets | 4.62 | % | N/A | 6.25 | % | N/A | 5.50 | % | N/A | 6.65 | % | N/A |
(1) | Rate utilized at year-end for the following year's pension expense and related balance sheet amounts at current year- end. |
(2) | U.K. plan was closed to future accrual during 2009. |
(1) | optimize the long-term return on plan assets at an acceptable level of risk; |
(2) | maintain a broad diversification across asset classes and among investment managers; |
(3) | manage the risk level within each asset class and in relation to the plans' liabilities |
Canada plans assets | U.K. plan assets | ||||||||||
Target allocations | Actual allocations | Target allocations | Actual allocations | ||||||||
Equities | 33.4 | % | 31.5 | % | 30.0 | % | 26.6 | % | |||
Fixed income | 66.6 | % | 67.8 | % | 40.0 | % | 46.1 | % | |||
Hedge funds | 0.0 | % | 0.0 | % | 16.0 | % | 17.4 | % | |||
Real estate | 0.0 | % | 0.0 | % | 7.0 | % | 4.6 | % | |||
Other | 0.0 | % | 0.7 | % | 7.0 | % | 5.3 | % |
• | Cash and Short Term Instruments—Includes cash, trades awaiting settlement, bank deposits, short term bills and short term notes. Our "trades awaiting settlement" category includes payables and receivables associated with asset purchases and sales that are awaiting final cash settlement as of year-end due to the use of trade date accounting for our pension plans assets. These payables normally settle within a few business days of the purchase or sale of the respective asset. The respective assets are included in or removed from our year end plan assets and categorized in their respective asset categories in the fair value hierarchy below. We include these items in level 1 of this hierarchy, as the values are derived from quoted prices in active markets. Short term instruments are included in level 2 of the fair value hierarchy as these are highly liquid instruments that are valued using observable inputs but their asset values are not publicly quoted. |
• | Debt Securities—Includes various government and corporate fixed income securities, interest and inflation-linked assets such as bonds and swaps, collateralized securities, and other debt securities. The majority of the plans' fixed income assets trade on "over the counter" exchanges, which provides observable inputs that are the primary input used to determine each individual investment's fair value. We also use independent pricing vendors as well as matrix pricing techniques. Matrix pricing uses observable data from other similar investments as the primary input to determine the individual security's fair value. Assets included in our collateralized securities include mortgage backed securities and collateralized mortgage obligations, which are considered level 3 due to the use of the significant unobservable inputs used in deriving these assets' fair values. |
• | Equities—Includes publicly traded common and other equity-like holdings, primarily publicly traded common stock, including real estate investment trusts, certain comingled funds investing in equities and other fund holdings. Equity assets are well diversified between international and domestic investments. We consider equities quoted on public exchanges as level 1 while other assets that are not quoted on public exchanges but valued using significant observable inputs as level 2 depending on the individual asset's characteristics. |
• | Investment Funds—This category includes our debt funds, equity funds, hedge fund of funds, and real estate fund holdings. The market values for these funds are based on the net asset values multiplied by the number of shares owned. For some of our hedge fund of funds we have the ability to liquidate without material delays at their net asset value and have recorded these assets at level 2 as the values were based upon significant observable inputs. |
• | Other—Includes credit default swaps, repurchase agreements, recoverable taxes for taxes paid and awaiting reclaim due to the tax exempt nature of the pension plan, venture capital, and private equity. Repurchase agreements are agreements where our plan has purchased assets using borrowed funds, creating a repurchase agreement liability, to facilitate the trade. The assets associated with the repurchase agreement are included in the respective asset's category in the fair value hierarchy and the repurchase agreement liability is classified as level 1 in the hierarchy as the liability is valued using quoted prices in active markets. We are viewing the asset type as opposed to the investment vehicle in determining the presentation of our asset allocations. We include recoverable tax items in level 1 of this hierarchy, as the values are derived from quoted prices in active markets. Our credit default swaps are included in level 2 as the values were based upon significant observable inputs and our venture capital and private equity are included in level 3 as the values are based upon the use of unobservable inputs. |
Fair value measurements as of December 31, 2011 | |||||||||||||||
Total at December 31, 2011 | Quoted prices in active markets (Level 1) | Significant observable inputs (Level 2) | Significant unobservable inputs (Level 3) | ||||||||||||
Canada | |||||||||||||||
Cash and cash equivalents | |||||||||||||||
Cash | 49.4 | $ | 49.4 | $ | — | $ | — | ||||||||
Trades awaiting settlement | 1.1 | 1.1 | — | — | |||||||||||
Bank deposits, short-term bills and notes | 41.7 | 0.5 | 41.2 | — | |||||||||||
Debt | |||||||||||||||
Government securities | 699.2 | — | 699.2 | — |
Corporate debt securities | 97.0 | — | 97.0 | — | |||||||||||
Collateralized debt securities | 2.6 | — | — | 2.6 | |||||||||||
Other debt securities | 0.1 | — | 0.1 | — | |||||||||||
Equities | |||||||||||||||
Common stock | 95.8 | 95.8 | — | — | |||||||||||
Other equity securities | 2.8 | 2.8 | — | — | |||||||||||
Investment funds | |||||||||||||||
Equity funds | 309.8 | — | 309.8 | — | |||||||||||
Other | |||||||||||||||
Recoverable taxes | — | — | — | — | |||||||||||
Venture capital | 0.4 | — | — | 0.4 | |||||||||||
Total—Canada | 1,299.9 | 149.6 | 1,147.3 | 3.0 | |||||||||||
U.K. | |||||||||||||||
Cash and cash equivalents | |||||||||||||||
Cash | 25.6 | 25.6 | — | — | |||||||||||
Trades awaiting settlement | (7.5 | ) | (7.5 | ) | — | — | |||||||||
Bank deposits, short-term bills and notes | 20.5 | — | 20.5 | — | |||||||||||
Debt | |||||||||||||||
Government securities | 152.1 | — | 152.1 | — | |||||||||||
Corporate debt securities | 434.4 | — | 434.4 | — | |||||||||||
Interest and inflation linked assets | 212.1 | — | 213.3 | (1.2 | ) | ||||||||||
Collateralized debt securities | 3.2 | — | — | 3.2 | |||||||||||
Equities | |||||||||||||||
Common stock | 392.5 | 390.6 | — | 1.9 | |||||||||||
Other equity securities | 4.8 | 4.8 | — | — | |||||||||||
Investment funds | |||||||||||||||
Debt funds | 201.8 | — | 123.6 | 78.2 | |||||||||||
Equity funds | 79.7 | — | 79.7 | — | |||||||||||
Real estate funds | 61.9 | — | — | 61.9 | |||||||||||
Hedge funds of funds | 321.3 | — | 153.2 | 168.1 | |||||||||||
Other | |||||||||||||||
Repurchase agreements | (66.6 | ) | (66.6 | ) | — | — | |||||||||
Credit default swaps | (14.5 | ) | — | (14.5 | ) | — | |||||||||
Private equity | 19.8 | — | — | 19.8 | |||||||||||
Recoverable taxes | 0.5 | 0.5 | — | — | |||||||||||
Total—U.K. | 1,841.6 | 347.4 | 1,162.3 | 331.9 | |||||||||||
Total | $ | 3,141.5 | $ | 497.0 | $ | 2,309.6 | $ | 334.9 |
Fair value measurements as of December 25, 2010 | |||||||||||||||
Total at December 25, 2010 | Quoted prices in active markets (Level 1) | Significant observable inputs (Level 2) | Significant unobservable inputs (Level 3) | ||||||||||||
Canada | |||||||||||||||
Cash and cash equivalents | |||||||||||||||
Cash | $ | 51.8 | $ | 51.8 | $ | — | $ | — | |||||||
Trades awaiting settlement | — | ||||||||||||||
Bank deposits, short-term bills and notes | 64.0 | 1.5 | 62.5 | — | |||||||||||
Debt | |||||||||||||||
Government securities | 658.6 | — | 658.6 | — | |||||||||||
Corporate debt securities | 93.3 | — | 93.3 | — | |||||||||||
Collateralized debt securities | 5.0 | — | — | 5.0 | |||||||||||
Other debt securities | 0.2 | — | 0.2 | — | |||||||||||
Equities | |||||||||||||||
Common stock | 88.3 | 88.3 | — | — | |||||||||||
Other equity securities | 2.0 | 2.0 | — | — | |||||||||||
Investment funds | |||||||||||||||
Equity funds | 335.7 | — | 335.7 | — | |||||||||||
Other | |||||||||||||||
Recoverable taxes | 0.2 | 0.2 | — | — | |||||||||||
Venture capital | 0.6 | — | — | 0.6 | |||||||||||
Total—Canada | 1,299.7 | 143.8 | 1,150.3 | 5.6 | |||||||||||
U.K. | |||||||||||||||
Cash and cash equivalents | |||||||||||||||
Cash | 161.3 | 161.3 | — | — | |||||||||||
Trades awaiting settlement | (8.4 | ) | (8.4 | ) | — | — | |||||||||
Bank deposits, short-term bills and notes | 34.2 | — | 34.2 | — | |||||||||||
Debt | |||||||||||||||
Government securities | 75.4 | — | 75.4 | — | |||||||||||
Corporate debt securities | 371.0 | — | 369.5 | 1.5 | |||||||||||
Interest and inflation linked assets | 238.5 | — | 231.6 | 6.9 | |||||||||||
Collateralized debt securities | 4.6 | — | — | 4.6 | |||||||||||
Equities | |||||||||||||||
Common stock | 487.3 | 487.3 | — | — | |||||||||||
Other equity securities | 10.1 | 10.1 | — | — | |||||||||||
Investment funds | |||||||||||||||
Debt funds | 139.7 | — | 139.7 | — | |||||||||||
Equity funds | 85.6 | — | 85.6 | — | |||||||||||
Real estate funds | 72.7 | — | 6.9 | 65.8 | |||||||||||
Hedge funds of funds | 253.2 | — | 120.2 | 133.0 | |||||||||||
Other | |||||||||||||||
Repurchase agreements | (101.5 | ) | (101.5 | ) | — | — | |||||||||
Credit default swaps | (3.2 | ) | — | (3.2 | ) | — | |||||||||
Recoverable taxes | 0.6 | 0.6 | — | — | |||||||||||
Total—U.K. | 1,821.1 | 549.4 | 1,059.9 | 211.8 | |||||||||||
Total | $ | 3,120.8 | $ | 693.2 | $ | 2,210.2 | $ | 217.4 |
Canada | U.K. | Total | |||||||||
Balance at December 26, 2009 | $ | 7.0 | $ | 211.4 | $ | 218.4 | |||||
Total gain or loss (realized/unrealized): | |||||||||||
Realized loss | — | (0.7 | ) | (0.7 | ) | ||||||
Unrealized (loss)/gain included in AOCI | (0.3 | ) | 18.8 | 18.5 | |||||||
Purchases, issuances, settlements | (1.4 | ) | (8.4 | ) | (9.8 | ) | |||||
Transfers in/(out) of Level 3 | — | (2.4 | ) | (2.4 | ) | ||||||
Foreign exchange translation (loss)/gain | 0.3 | (6.9 | ) | (6.6 | ) | ||||||
Balance at December 25, 2010 | 5.6 | 211.8 | 217.4 | ||||||||
Total gain or loss (realized/unrealized): | |||||||||||
Realized loss | — | (7.5 | ) | (7.5 | ) | ||||||
Unrealized (loss)/gain included in AOCI | (0.2 | ) | (7.0 | ) | (7.2 | ) | |||||
Purchases, issuances, settlements | (2.4 | ) | 141.1 | 138.7 | |||||||
Transfers in/(out) of Level 3 | — | (4.1 | ) | (4.1 | ) | ||||||
Foreign exchange translation loss | — | (2.4 | ) | (2.4 | ) | ||||||
Balance at December 31, 2011 | $ | 3.0 | $ | 331.9 | $ | 334.9 |
Expected benefit payments | Amount | ||
(In millions) | |||
2012 | $ | 189.4 | |
2013 | $ | 194.0 | |
2014 | $ | 199.0 | |
2015 | $ | 203.5 | |
2016 | $ | 207.6 | |
2017-2022 | $ | 1,175.7 |
Fair value measurements as of December 31, 2011 | |||||||||||||||
Total at December 31, 2011 | Quoted prices in active markets (Level 1) | Significant observable inputs (Level 2) | Significant unobservable inputs (Level 3) | ||||||||||||
Corporate | |||||||||||||||
Equities | |||||||||||||||
Mutual funds | $ | 2.4 | $ | 2.4 | $ | — | $ | — | |||||||
Total—Corporate | $ | 2.4 | $ | 2.4 | $ | — | $ | — |
Fair value measurements as of December 25, 2010 | |||||||||||||||
Total at December 25, 2010 | Quoted prices in active markets (Level 1) | Significant observable inputs (Level 2) | Significant unobservable inputs (Level 3) | ||||||||||||
Corporate | |||||||||||||||
Equities | |||||||||||||||
Mutual funds | $ | 1.9 | $ | 1.9 | $ | — | $ | — | |||||||
Total—Corporate | $ | 1.9 | $ | 1.9 | $ | — | $ | — |
|
For the years ended | |||||||
December 31, 2011 | December 25, 2010 | ||||||
Canada plans | U.S. plan | Canada plans | U.S. plan | ||||
Key assumptions: | |||||||
Weighted average settlement discount rate | 4.67% | 4.35% | 5.34% | 5.05% | |||
Health care cost trend rate | Ranging ratably from 8.0% in 2012 to 5.0% in 2018 | Ranging ratably from 8.2% in 2012 to 4.5% in 2028 | Ranging ratably from 8.5% in 2011 to 5.0% in 2018 | Ranging ratably from 8.2% in 2011 to 4.5% in 2028 |
For the year ended December 31, 2011 | |||||||||||
Canada plans | U.S. plan | Consolidated | |||||||||
(In millions) | |||||||||||
Components of net periodic postretirement benefit cost: | |||||||||||
Service cost—benefits earned during the period | $ | 2.2 | $ | 0.2 | $ | 2.4 | |||||
Interest cost on projected benefit obligation | 7.6 | 0.1 | 7.7 | ||||||||
Amortization of prior service gain | (3.8 | ) | — | (3.8 | ) | ||||||
Amortization of net actuarial gain | (3.5 | ) | 0.1 | (3.4 | ) | ||||||
Net periodic postretirement benefit cost | $ | 2.5 | $ | 0.4 | $ | 2.9 |
For the year ended December 25, 2010 | |||||||||||
Canada plans | U.S. plan | Consolidated | |||||||||
(In millions) | |||||||||||
Components of net periodic postretirement benefit cost: | |||||||||||
Service cost—benefits earned during the period | $ | 2.4 | $ | 0.1 | $ | 2.5 | |||||
Interest cost on projected benefit obligation | 9.3 | 0.1 | 9.4 | ||||||||
Amortization of prior service gain | (3.6 | ) | — | (3.6 | ) | ||||||
Amortization of net actuarial gain | (0.1 | ) | — | (0.1 | ) | ||||||
Net periodic postretirement benefit cost | $ | 8.0 | $ | 0.2 | $ | 8.2 |
For the year ended December 26, 2009 | |||||||||||
Canada plans | U.S. plan | Consolidated | |||||||||
(In millions) | |||||||||||
Components of net periodic postretirement benefit cost: | |||||||||||
Service cost—benefits earned during the period | $ | 2.9 | $ | 0.1 | $ | 3.0 | |||||
Interest cost on projected benefit obligation | 9.3 | 0.1 | 9.4 | ||||||||
Amortization of prior service cost | (2.5 | ) | — | (2.5 | ) | ||||||
Amortization of net actuarial loss | (0.9 | ) | — | (0.9 | ) | ||||||
Net periodic postretirement benefit cost | $ | 8.8 | $ | 0.2 | $ | 9.0 |
As of December 31, 2011 | |||||||||||
Canada Plans | U.S. Plan | Consolidated | |||||||||
(In millions) | |||||||||||
Change in projected postretirement benefit obligation: | |||||||||||
Projected postretirement benefit obligation at beginning of year | $ | 141.3 | $ | 2.5 | $ | 143.8 | |||||
Service cost | 2.2 | 0.2 | 2.4 | ||||||||
Interest cost | 7.6 | 0.1 | 7.7 | ||||||||
Actuarial loss (gain) | 24.7 | — | 24.7 | ||||||||
Benefits paid, net of participant contributions | (7.5 | ) | — | (7.5 | ) | ||||||
Foreign currency exchange rate change | (2.7 | ) | — | (2.7 | ) | ||||||
Projected postretirement benefit obligation at end of year | $ | 165.6 | $ | 2.8 | $ | 168.4 | |||||
Funded status—Unfunded: | |||||||||||
Accumulated postretirement benefit obligation | $ | (165.6 | ) | $ | (2.8 | ) | $ | (168.4 | ) | ||
Amounts recognized in the Consolidated Balance Sheet: | |||||||||||
Accrued expenses and other liabilities | $ | (7.6 | ) | $ | (0.1 | ) | $ | (7.7 | ) | ||
Pension and postretirement benefits | (158.0 | ) | (2.7 | ) | (160.7 | ) | |||||
Net amounts recognized | $ | (165.6 | ) | $ | (2.8 | ) | $ | (168.4 | ) | ||
Amounts in Accumulated Other Comprehensive (Income) Loss unrecognized as components of net periodic pension cost, pre-tax: | |||||||||||
Net actuarial (gain) loss | $ | (15.1 | ) | $ | 1.1 | $ | (14.0 | ) | |||
Net prior service credit | (10.6 | ) | — | (10.6 | ) | ||||||
Total unrecognized | $ | (25.7 | ) | $ | 1.1 | $ | (24.6 | ) |
Canada plans | U.S. plan | Total | |||||||||
(In millions) | |||||||||||
Accumulated other comprehensive income as of December 26, 2009 | $ | (30.0 | ) | $ | 0.4 | $ | (29.6 | ) | |||
Deconsolidation of Brewers' Retail, Inc. | — | — | — | ||||||||
Amortization of prior service costs | 3.6 | — | 3.6 | ||||||||
Amortization of net actuarial loss | 0.1 | — | 0.1 | ||||||||
Current year actuarial loss (gain) | (29.3 | ) | 0.8 | (28.5 | ) | ||||||
Amendments | — | — | — | ||||||||
Foreign currency exchange rate change | 1.9 | — | 1.9 | ||||||||
Accumulated other comprehensive income as of December 25, 2010 | $ | (53.7 | ) | $ | 1.2 | $ | (52.5 | ) | |||
Amortization of prior service costs | 3.8 | — | 3.8 | ||||||||
Amortization of net actuarial loss | 3.5 | (0.1 | ) | 3.4 | |||||||
Current year actuarial loss (gain) | 24.9 | — | 24.9 | ||||||||
Foreign currency exchange rate change | (4.2 | ) | — | (4.2 | ) | ||||||
Accumulated other comprehensive income as of December 31, 2011 | $ | (25.7 | ) | $ | 1.1 | $ | (24.6 | ) |
Amount | |||
(In millions) | |||
Amortization of net prior service cost (gain) | $ | (3.7 | ) |
Amortization of actuarial net loss (gain) | $ | (0.2 | ) |
As of December 25, 2010 | |||||||||||
Canada Plans | U.S. Plan | Consolidated | |||||||||
(In millions) | |||||||||||
Change in projected postretirement benefit obligation: | |||||||||||
Projected postretirement benefit obligation at beginning of year | $ | 158.2 | $ | 1.5 | $ | 159.7 | |||||
Service cost | 2.4 | 0.1 | 2.5 | ||||||||
Interest cost | 9.3 | 0.1 | 9.4 | ||||||||
Actuarial loss (gain) | (28.5 | ) | 0.8 | (27.7 | ) | ||||||
Benefits paid, net of participant contributions | (6.1 | ) | — | (6.1 | ) | ||||||
Foreign currency exchange rate change | 6.0 | — | 6.0 | ||||||||
Projected postretirement benefit obligation at end of year | $ | 141.3 | $ | 2.5 | $ | 143.8 | |||||
Funded status—Unfunded: | |||||||||||
Accumulated postretirement benefit obligation | $ | (141.3 | ) | $ | (2.5 | ) | $ | (143.8 | ) | ||
Amounts recognized in the Consolidated Balance Sheet: | |||||||||||
Accrued expenses and other liabilities | $ | (7.2 | ) | $ | — | $ | (7.2 | ) | |||
Pension and postretirement benefits | (134.1 | ) | (2.5 | ) | (136.6 | ) | |||||
Net amounts recognized | $ | (141.3 | ) | $ | (2.5 | ) | $ | (143.8 | ) | ||
Amounts in Accumulated Other Comprehensive (Income) Loss unrecognized as components of net periodic pension cost, pre-tax: | |||||||||||
Net actuarial (gain) loss | $ | (40.0 | ) | $ | 1.2 | $ | (38.8 | ) | |||
Net prior service credit | (13.7 | ) | — | (13.7 | ) | ||||||
Total unrecognized | $ | (53.7 | ) | $ | 1.2 | $ | (52.5 | ) |
Amount | |||
(In millions) | |||
2012 | $ | 7.7 | |
2013 | $ | 8.2 | |
2014 | $ | 8.7 | |
2015 | $ | 8.6 | |
2016 | $ | 9.0 | |
2017-2022 | $ | 58.8 |
1% point increase (unfavorable) | 1% point decrease favorable | ||||||
(In millions) | |||||||
Canada plans | |||||||
Effect on total of service and interest cost components | $ | (1.2 | ) | $ | 1.1 | ||
Effect on postretirement benefit obligation | $ | (18.1 | ) | $ | 16.6 | ||
U.S. plan | |||||||
Effect on total of service and interest cost components | $ | — | $ | — | |||
Effect on postretirement benefit obligation | $ | (0.3 | ) | $ | 0.3 |
|
Fair Value Measurements at December 31, 2011 Using | |||||||||||||||
Total at December 31, 2011 | Quoted prices in active markets (Level 1) | Significant Other Observable Inputs (Level 2) | Significant Unobservable Inputs (Level 3) | ||||||||||||
(In millions) | |||||||||||||||
Cross currency swaps | $ | (311.9 | ) | $ | — | $ | (311.9 | ) | $ | — | |||||
Foreign currency forwards | 2.2 | — | 2.2 | — | |||||||||||
Commodity swaps | (6.9 | ) | — | (6.9 | ) | — | |||||||||
Total | $ | (316.6 | ) | $ | — | $ | (316.6 | ) | $ | — |
Fair Value Measurements at December 25, 2010 Using | |||||||||||||||
Total at December 25, 2010 | Quoted prices in active markets (Level 1) | Significant Other Observable Inputs (Level 2) | Significant Unobservable Inputs (Level 3) | ||||||||||||
(In millions) | |||||||||||||||
Cross currency swaps | $ | (412.2 | ) | $ | — | $ | (412.2 | ) | $ | — | |||||
Forward starting interest rate swaps | (16.3 | ) | — | (16.3 | ) | — | |||||||||
Foreign currency forwards | (2.0 | ) | — | (2.0 | ) | — | |||||||||
Commodity swaps | 1.2 | — | 1.2 | — | |||||||||||
Total return swaps | 2.9 | — | — | 2.9 | |||||||||||
Total | $ | (426.4 | ) | $ | — | $ | (429.3 | ) | $ | 2.9 |
Rollforward of Level 3 Inputs | |||
Balance at December 26, 2009 | $ | — | |
Total gains or losses (realized/unrealized) | |||
Included in earnings (or change in net assets) | — | ||
Included in AOCI | — | ||
Purchases, issuances and settlements | 2.9 | ||
Transfers In/Out of Level 3 | — | ||
Balance at December 25, 2010 | $ | 2.9 | |
Total gains or losses (realized/unrealized) | |||
Included in earnings (or change in net assets) | 1.5 | ||
Included in AOCI | — | ||
Purchases, issuances and settlements | (4.4 | ) | |
Transfers In/Out of Level 3 | — | ||
Balance at December 31, 2011 | $ | — |
As of December 31, 2011 | ||||||||||||||||
Asset derivatives | Liability derivatives | |||||||||||||||
Notional amount | Balance sheet location | Fair value | Balance sheet location | Fair value | ||||||||||||
Derivatives designated as hedging instruments: | ||||||||||||||||
Cross currency swaps | CAD | 901.3 | Other current assets | $ | — | Current derivative hedging instruments | $ | (103.2 | ) | |||||||
Other assets | — | Long term derivative hedging instruments | (208.7 | ) | ||||||||||||
Foreign currency forwards | USD | 464.6 | Other current assets | — | Current derivative hedging instruments | (1.3 | ) | |||||||||
Other assets | 3.4 | Long term derivative hedging instruments | — | |||||||||||||
Commodity swaps | Gigajoules | 2.2 | Other current assets | — | Current derivative hedging instruments | (1.8 | ) | |||||||||
Other assets | — | Long term derivative hedging instruments | (0.5 | ) | ||||||||||||
Total derivatives designated as hedging instruments | $ | 3.4 | $ | (315.5 | ) | |||||||||||
Derivatives not designated as hedging instruments: | ||||||||||||||||
Aluminum swaps | Metric tonnes (actual) | 8,825.0 | Other current assets | $ | — | Current derivative hedging instruments | $ | (1.3 | ) | |||||||
Other assets | — | Long term derivative hedging instruments | (3.3 | ) | ||||||||||||
Diesel swaps | Metric tonnes (actual) | 9,668.0 | Other current assets | 0.1 | Current derivative hedging instruments | — | ||||||||||
Total derivatives not designated as hedging instruments | $ | 0.1 | $ | (4.6 | ) |
As of December 25, 2010 | ||||||||||||||||
Asset derivatives | Liability derivatives | |||||||||||||||
Notional amount | Balance sheet location | Fair value | Balance sheet location | Fair value | ||||||||||||
Derivatives designated as hedging instruments: | ||||||||||||||||
Cross currency swaps | USD | 1,637.1 | Other current assets | $ | — | Current derivative hedging instruments | $ | (11.2 | ) | |||||||
Other assets | — | Long term derivative hedging instruments | (401.0 | ) | ||||||||||||
Forward starting interest rate swaps | USD | — | Other current assets | — | Current derivative hedging instruments | — | ||||||||||
Foreign currency forwards | USD | 426.0 | Other current assets | 0.3 | Current derivative hedging instruments | (12.4 | ) | |||||||||
Other assets | 0.1 | Long term derivative hedging instruments | (3.4 | ) | ||||||||||||
Commodity swaps | Gigajoules | 2.2 | Other current assets | 0.1 | Current derivative hedging instruments | (1.8 | ) | |||||||||
Other assets | — | Long term derivative hedging instruments | (0.4 | ) | ||||||||||||
Total derivatives designated as hedging instruments | $ | 0.5 | $ | (430.2 | ) | |||||||||||
Derivatives not designated as hedging instruments: | ||||||||||||||||
Foreign currency forwards | USD | 13.9 | Other current assets | $ | — | Current derivative hedging instruments | $ | (0.8 | ) | |||||||
Total return swap | AUD | 42.1 | Other current assets | 1.2 | Current derivative hedging instruments | — | ||||||||||
Option contracts | FGL.ASX Shares | 7.6 | Other current assets | 3.1 | Current derivative hedging instruments | (0.2 | ) | |||||||||
Total derivatives not designated as hedging instruments | $ | 4.3 | $ | (1.0 | ) |
For the year ended December 31, 2011 | |||||||||||||||
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) | ||||||||||
Cross currency contracts(1) | $ | (0.2 | ) | Other income (expense), net | $ | 3.0 | Other income (expense), net | $ | — | ||||||
Interest expense | — | Interest expense | — | ||||||||||||
Forward starting interest rate swaps | — | Interest expense | (1.6 | ) | Interest expense | — | |||||||||
Foreign currency forwards | (0.4 | ) | Other income (expense), net | (6.7 | ) | Other income (expense), net | — | ||||||||
Cost of goods sold | (9.6 | ) | Cost of goods sold | — | |||||||||||
Marketing, general and administrative expenses | — | Marketing, general and administrative expenses | — | ||||||||||||
Commodity swaps | (0.1 | ) | Cost of goods sold | — | Cost of goods sold | — | |||||||||
Total | $ | (0.7 | ) | $ | (14.9 | ) | $ | — |
(1) | As cash flow hedges, the foreign exchange gain (loss) component of these cross currency swaps was offset by the corresponding gain (loss) on the hedged forecasted transactions in Other income (expense), net and Interest expense, net. In the fourth quarter of 2011, the cross currency swaps were dedesignated as cash flow hedges and redesignated in net investment hedges. |
For the year ended December 31, 2011 | |||||||||||||||
Derivatives in net investment 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) | ||||||||||
Cross currency contracts | $ | 0.3 | Other income (expense), net | $ | — | Other income (expense), net | $ | — | |||||||
Total | $ | 0.3 | $ | — | $ | — |
For the year ended December 25, 2010 | |||||||||||||||
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) | ||||||||||
Cross currency contracts(1) | $ | 9.9 | Other income (expense), net | $ | (39.9 | ) | Other income (expense), net | $ | — | ||||||
Interest expense | (12.1 | ) | Interest expense | — | |||||||||||
Forward starting interest rate swaps | (13.9 | ) | Interest expense | (0.2 | ) | Interest expense | — | ||||||||
Foreign currency forwards | (6.3 | ) | Other income (expense), net | (5.0 | ) | Other income (expense), net | — | ||||||||
Cost of goods sold | (1.7 | ) | Cost of goods sold | — | |||||||||||
Marketing, general and administrative expenses | 0.1 | Marketing, general and administrative expenses | — | ||||||||||||
Commodity swaps | (1.2 | ) | Cost of goods sold | (1.7 | ) | Cost of goods sold | — | ||||||||
Total | $ | (11.5 | ) | $ | (60.5 | ) | $ | — |
(1) | The foreign exchange gain (loss) component of these cross currency swaps is offset by the corresponding gain (loss) on the hedged forecasted transactions in Other income (expense), net and Interest expense, net. |
For the year ended December 26, 2009 | |||||||||||||||
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) | ||||||||||
Cross currency contracts(1) | $ | (3.2 | ) | Other income (expense), net | $ | (120.3 | ) | Other income (expense), net | $ | — | |||||
Interest expense | (5.8 | ) | Interest expense | — | |||||||||||
Forward starting interest rate swaps | 5.8 | Interest expense | — | Interest expense | — | ||||||||||
Foreign currency forwards | (61.7 | ) | Other income (expense), net | 3.0 | Other income (expense), net | — | |||||||||
Cost of goods sold | 13.8 | Cost of goods sold | — | ||||||||||||
Marketing, general and administrative expenses | (0.5 | ) | Marketing, general and administrative expenses | — | |||||||||||
Commodity swaps | 1.1 | Cost of goods sold | (3.5 | ) | Cost of goods sold | — | |||||||||
Total | $ | (58.0 | ) | $ | (113.3 | ) | $ | — |
(1) | The foreign exchange gain (loss) component of these cross currency swaps is offset by the corresponding gain (loss) on the hedged forecasted transactions in Other income (expense), net and Interest expense, net. |
For the year ended December 31, 2011 | ||||
Derivatives not in hedging relationship | Location of gain (loss) recognized in income on derivative | Amount of gain (loss) recognized in income on derivative | ||
Commodity swaps | Cost of goods sold | $ | (4.7 | ) |
Cash settled total return swap | Other income (expense), net | (0.6 | ) | |
Option contracts | Other income (expense), net | 1.5 | ||
Foreign currency forwards | Other income (expense), net | (0.1 | ) | |
$ | (3.9 | ) |
For the year ended December 25, 2010 | ||||
Derivatives not in hedging relationship | Location of gain (loss) recognized in income on derivative | Amount of gain (loss) recognized in income on derivative | ||
Cash settled total return swap | Other income (expense), net | $ | 28.3 | |
Option contracts | Other income (expense), net | 21.7 | ||
Foreign currency forwards | Other income (expense), net | (6.0 | ) | |
$ | 44.0 |
For the year ended December 26, 2009 | ||||
Derivatives not in hedging relationship | Location of gain (loss) recognized in income on derivative | Amount of gain (loss) recognized in income on derivative | ||
Cash settled total return swap | Other income (expense), net | $ | 0.7 | |
Physical commodity contracts | Cost of goods sold | (9.6 | ) | |
$ | (8.9 | ) |
|
As of | |||||||
December 31, 2011 | December 25, 2010 | ||||||
(In millions) | |||||||
Accrued compensation | $ | 54.3 | $ | 87.3 | |||
Accrued excise taxes | 246.2 | 221.5 | |||||
Accrued interest | 23.1 | 35.2 | |||||
Accrued selling and marketing costs | 117.3 | 92.8 | |||||
Container liability | 43.5 | 41.5 | |||||
Accrued pension and postretirement benefits | 10.1 | 8.8 | |||||
Other | 152.3 | 317.5 | |||||
Accrued expenses and other liabilities | $ | 646.8 | $ | 804.6 |
|
Amount | |||
(In millions) | |||
2012 | $ | 186.4 | |
2013 | 193.4 | ||
2014 | 156.0 | ||
2015 | 92.4 | ||
2016 | 92.4 | ||
Thereafter | — | ||
Total | $ | 720.6 |
Amount | |||
(In millions) | |||
2012 | $ | 79.6 | |
2013 | 71.0 | ||
2014 | 70.2 | ||
2015 | 56.3 | ||
2016 | 44.8 | ||
Thereafter | 111.4 | ||
Total | $ | 433.3 |
Amount | |||
(In millions) | |||
2012 | $ | 30.0 | |
2013 | 24.1 | ||
2014 | 17.4 | ||
2015 | 10.9 | ||
2016 | 6.4 | ||
Thereafter | 27.1 | ||
Total | $ | 115.9 |
• | 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 4.6% risk-free rate of return. |
Purchased tax credits indemnity reserve | Tax, civil and labor indemnity reserve | Total indemnity reserves | |||||||||
(In millions) | |||||||||||
Balance at December 28, 2008 | $ | 120.8 | $ | 12.4 | $ | 133.2 | |||||
Changes in estimates | (5.9 | ) | (6.4 | ) | (12.3 | ) | |||||
Foreign exchange transaction impact | 39.7 | 3.5 | 43.2 | ||||||||
Balance at December 26, 2009 | $ | 154.6 | $ | 9.5 | $ | 164.1 | |||||
Changes in estimates | (32.3 | ) | — | (32.3 | ) | ||||||
Cash settlement | (96.0 | ) | — | (96.0 | ) | ||||||
Foreign exchange transaction impact | (2.6 | ) | 0.5 | (2.1 | ) | ||||||
Balance at December 25, 2010 | $ | 23.7 | $ | 10.0 | $ | 33.7 | |||||
Changes in estimates | — | — | — | ||||||||
Foreign exchange transaction impact | (2.2 | ) | (0.9 | ) | (3.1 | ) | |||||
Balance at December 31, 2011 | $ | 21.5 | $ | 9.1 | $ | 30.6 |
|
Parent Guarantor and 2007 Issuer | 2002 Issuer | Subsidiary Guarantors | Subsidiary Non Guarantors | Eliminations | Consolidated | ||||||||||||||||||
Sales | $ | 28.2 | $ | 211.0 | $ | 2,693.8 | $ | 2,471.4 | $ | (234.5 | ) | $ | 5,169.9 | ||||||||||
Excise taxes | — | — | (656.0 | ) | (998.2 | ) | — | (1,654.2 | ) | ||||||||||||||
Net sales | 28.2 | 211.0 | 2,037.8 | 1,473.2 | (234.5 | ) | 3,515.7 | ||||||||||||||||
Cost of goods sold | — | (41.8 | ) | (1,096.5 | ) | (1,114.0 | ) | 203.2 | (2,049.1 | ) | |||||||||||||
Gross profit | 28.2 | 169.2 | 941.3 | 359.2 | (31.3 | ) | 1,466.6 | ||||||||||||||||
Marketing, general and administrative expenses | (119.3 | ) | (40.2 | ) | (482.3 | ) | (408.5 | ) | 31.3 | (1,019.0 | ) | ||||||||||||
Special items, net | (0.8 | ) | — | (11.6 | ) | 0.1 | — | (12.3 | ) | ||||||||||||||
Equity income (loss) in subsidiaries | 736.5 | 459.2 | (298.2 | ) | 459.5 | (1,357.0 | ) | — | |||||||||||||||
Equity income in MillerCoors | — | — | 457.9 | — | — | 457.9 | |||||||||||||||||
Operating income (loss) | 644.6 | 588.2 | 607.1 | 410.3 | (1,357.0 | ) | 893.2 | ||||||||||||||||
Interest income (expense), net | (28.8 | ) | 34.5 | 298.9 | (412.6 | ) | — | (108.0 | ) | ||||||||||||||
Other income (expense), net | (10.6 | ) | 15.4 | (16.9 | ) | 1.1 | — | (11.0 | ) | ||||||||||||||
Income (loss) from continuing operations before income taxes | 605.2 | 638.1 | 889.1 | (1.2 | ) | (1,357.0 | ) | 774.2 | |||||||||||||||
Income tax benefit (expense) | 71.1 | (180.1 | ) | (8.8 | ) | 18.4 | — | (99.4 | ) | ||||||||||||||
Net income (loss) from continuing operations | 676.3 | 458.0 | 880.3 | 17.2 | (1,357.0 | ) | 674.8 | ||||||||||||||||
Income (loss) from discontinued operations, net of tax | — | — | — | 2.3 | — | 2.3 | |||||||||||||||||
Net income (loss) including noncontrolling interests | 676.3 | 458.0 | 880.3 | 19.5 | (1,357.0 | ) | 677.1 | ||||||||||||||||
Add back (less): Loss (net income) attributable to noncontrolling interests | — | — | — | (0.8 | ) | — | (0.8 | ) | |||||||||||||||
Net income (loss) attributable to MCBC | $ | 676.3 | $ | 458.0 | $ | 880.3 | $ | 18.7 | $ | (1,357.0 | ) | $ | 676.3 |
Parent Guarantor and 2007 Issuer | 2002 Issuer | Subsidiary Guarantors | Subsidiary Non Guarantors | Eliminations | Consolidated | ||||||||||||||||||
Sales | $ | 22.4 | $ | 201.7 | $ | 2,521.5 | $ | 2,176.8 | $ | (219.3 | ) | $ | 4,703.1 | ||||||||||
Excise taxes | — | — | (609.5 | ) | (839.2 | ) | — | (1,448.7 | ) | ||||||||||||||
Net sales | 22.4 | 201.7 | 1,912.0 | 1,337.6 | (219.3 | ) | 3,254.4 | ||||||||||||||||
Cost of goods sold | — | (45.9 | ) | (970.1 | ) | (992.5 | ) | 196.3 | (1,812.2 | ) | |||||||||||||
Gross profit | 22.4 | 155.8 | 941.9 | 345.1 | (23.0 | ) | 1,442.2 | ||||||||||||||||
Marketing, general and administrative expenses | (122.9 | ) | (35.6 | ) | (485.6 | ) | (392.6 | ) | 24.2 | (1,012.5 | ) | ||||||||||||
Special items, net | (1.2 | ) | — | (17.6 | ) | (2.5 | ) | — | (21.3 | ) | |||||||||||||
Equity income (loss) in subsidiaries | 739.4 | 250.4 | (377.8 | ) | 440.3 | (1,052.3 | ) | — | |||||||||||||||
Equity income in MillerCoors | — | 456.1 | — | — | — | 456.1 | |||||||||||||||||
Operating income (loss) | 637.7 | 826.7 | 60.9 | 390.3 | (1,051.1 | ) | 864.5 | ||||||||||||||||
Interest income (expense), net | (33.3 | ) | 48.5 | 261.9 | (376.5 | ) | — | (99.4 | ) | ||||||||||||||
Other income (expense), net | 55.3 | (3.5 | ) | 1.4 | (9.3 | ) | — | 43.9 | |||||||||||||||
Income (loss) from continuing operations before income taxes | 659.7 | 871.7 | 324.2 | 4.5 | (1,051.1 | ) | 809.0 | ||||||||||||||||
Income tax benefit (expense) | 11.7 | (99.0 | ) | (48.9 | ) | (2.5 | ) | — | (138.7 | ) | |||||||||||||
Net income (loss) from continuing operations | 671.4 | 772.7 | 275.3 | 2.0 | (1,051.1 | ) | 670.3 | ||||||||||||||||
Income (loss) from discontinued operations, net of tax | — | — | — | 39.6 | — | 39.6 | |||||||||||||||||
Net income (loss) including noncontrolling interests | 671.4 | 772.7 | 275.3 | 41.6 | (1,051.1 | ) | 709.9 | ||||||||||||||||
Add back (less): Loss (net income) attributable to noncontrolling interests | — | — | — | (2.2 | ) | — | (2.2 | ) | |||||||||||||||
Net income (loss) attributable to MCBC | $ | 671.4 | $ | 772.7 | $ | 275.3 | $ | 39.4 | $ | (1,051.1 | ) | $ | 707.7 |
Parent Guarantor and 2007 Issuer | 2002 Issuer | Subsidiary Guarantors | Subsidiary Non Guarantors | Eliminations | Consolidated | ||||||||||||||||||
Sales | $ | 25.9 | $ | 197.2 | $ | 2,274.5 | $ | 2,141.7 | $ | (212.8 | ) | $ | 4,426.5 | ||||||||||
Excise taxes | — | — | (539.5 | ) | (854.6 | ) | — | (1,394.1 | ) | ||||||||||||||
Net sales | 25.9 | 197.2 | 1,735.0 | 1,287.1 | (212.8 | ) | 3,032.4 | ||||||||||||||||
Cost of goods sold | — | (47.3 | ) | (897.9 | ) | (968.5 | ) | 186.8 | (1,726.9 | ) | |||||||||||||
Gross profit | 25.9 | 149.9 | 837.1 | 318.6 | (26.0 | ) | 1,305.5 | ||||||||||||||||
Marketing, general and administrative expenses | (99.8 | ) | (43.8 | ) | (431.2 | ) | (351.7 | ) | 25.7 | (900.8 | ) | ||||||||||||
Special items, net | (0.9 | ) | — | (12.9 | ) | (18.9 | ) | — | (32.7 | ) | |||||||||||||
Equity income (loss) in subsidiaries | 860.1 | 295.3 | (42.5 | ) | 394.6 | (1,507.5 | ) | — | |||||||||||||||
Equity income in MillerCoors | — | 382.0 | — | — | — | 382.0 | |||||||||||||||||
Operating income (loss) | 785.3 | 783.4 | 350.5 | 342.6 | (1,507.8 | ) | 754.0 | ||||||||||||||||
Interest income (expense), net | (66.3 | ) | 42.8 | 1.3 | (100.8 | ) | 37.1 | (85.9 | ) | ||||||||||||||
Other income (expense), net | 6.8 | 6.8 | (16.8 | ) | 52.6 | — | 49.4 | ||||||||||||||||
Income (loss) from continuing operations before income taxes | 725.8 | 833.0 | 335.0 | 294.4 | (1,470.7 | ) | 717.5 | ||||||||||||||||
Income tax benefit (expense) | (5.4 | ) | (59.2 | ) | (18.7 | ) | 98.0 | — | 14.7 | ||||||||||||||
Net income (loss) from continuing operations | 720.4 | 773.8 | 316.3 | 392.4 | (1,470.7 | ) | 732.2 | ||||||||||||||||
Income (loss) from discontinued operations, net of tax | — | — | — | (9.0 | ) | — | (9.0 | ) | |||||||||||||||
Net income (loss) including noncontrolling interests | 720.4 | 773.8 | 316.3 | 383.4 | (1,470.7 | ) | 723.2 | ||||||||||||||||
Add back (less): Loss (net income) attributable to noncontrolling interests | — | — | — | (2.8 | ) | — | (2.8 | ) | |||||||||||||||
Net income (loss) attributable to MCBC | $ | 720.4 | $ | 773.8 | $ | 316.3 | $ | 380.6 | $ | (1,470.7 | ) | $ | 720.4 |
Parent Guarantor and 2007 Issuer | 2002 Issuer | Subsidiary Guarantors | Subsidiary Non Guarantors | Eliminations | Consolidated | ||||||||||||||||||
Assets | |||||||||||||||||||||||
Current assets: | |||||||||||||||||||||||
Cash and cash equivalents | $ | 601.1 | $ | — | $ | 318.0 | $ | 159.8 | $ | — | $ | 1,078.9 | |||||||||||
Accounts receivable, net | 0.9 | 6.7 | 203.6 | 377.6 | — | 588.8 | |||||||||||||||||
Other receivables, net | 46.9 | — | 29.1 | 61.2 | — | 137.2 | |||||||||||||||||
Total inventories, net | — | — | 83.0 | 124.2 | — | 207.2 | |||||||||||||||||
Other assets, net | 9.7 | 4.0 | 44.7 | 35.6 | — | 94.0 | |||||||||||||||||
Deferred tax assets | — | 5.8 | — | 12.1 | (6.3 | ) | 11.6 | ||||||||||||||||
Discontinued operations | — | — | — | 0.3 | — | 0.3 | |||||||||||||||||
Intercompany accounts receivable | — | 49.1 | 1,449.6 | 1,537.3 | (3,036.0 | ) | — | ||||||||||||||||
Total current assets | 658.6 | 65.6 | 2,128.0 | 2,308.1 | (3,042.3 | ) | 2,118.0 | ||||||||||||||||
Properties, net | 27.6 | 7.2 | 862.9 | 532.4 | — | 1,430.1 | |||||||||||||||||
Goodwill | — | 11.4 | 305.4 | 1,136.5 | — | 1,453.3 | |||||||||||||||||
Other intangibles, net | — | 37.2 | 4,150.8 | 398.0 | — | 4,586.0 | |||||||||||||||||
Investment in MillerCoors | — | — | 2,487.9 | — | — | 2,487.9 | |||||||||||||||||
Net investment in and advances to subsidiaries | 7,925.2 | 5,941.0 | — | 4,774.0 | (18,640.2 | ) | — | ||||||||||||||||
Deferred tax assets | 33.1 | 119.1 | 12.7 | 1.9 | (16.9 | ) | 149.9 | ||||||||||||||||
Other assets, net | 19.8 | 14.7 | 92.9 | 71.2 | — | 198.6 | |||||||||||||||||
Total assets | $ | 8,664.3 | $ | 6,196.2 | $ | 10,040.6 | $ | 9,222.1 | $ | (21,699.4 | ) | $ | 12,423.8 | ||||||||||
Liabilities and equity | |||||||||||||||||||||||
Current liabilities: | |||||||||||||||||||||||
Accounts payable | $ | 7.3 | $ | 3.2 | $ | 100.6 | $ | 190.1 | $ | — | $ | 301.2 | |||||||||||
Accrued expenses and other liabilities, net | 34.6 | 4.7 | 270.4 | 337.1 | — | 646.8 | |||||||||||||||||
Derivative hedging instruments | — | 101.4 | 4.7 | 1.5 | — | 107.6 | |||||||||||||||||
Deferred tax liability | 6.2 | — | 161.4 | — | (6.3 | ) | 161.3 | ||||||||||||||||
Current portion of long-term debt and short-term borrowings | — | 44.7 | — | 2.2 | — | 46.9 | |||||||||||||||||
Discontinued operations | — | — | — | 13.4 | — | 13.4 | |||||||||||||||||
Intercompany accounts payable | 413.8 | 26.1 | 1,566.5 | 1,029.6 | (3,036.0 | ) | — | ||||||||||||||||
Total current liabilities | 461.9 | 180.1 | 2,103.6 | 1,573.9 | (3,042.3 | ) | 1,277.2 | ||||||||||||||||
Long-term debt | 546.2 | — | 1,368.7 | — | — | 1,914.9 | |||||||||||||||||
Pension and post-retirement benefits | — | 2.7 | 392.5 | 302.3 | — | 697.5 | |||||||||||||||||
Derivative hedging instruments | — | 210.7 | 1.5 | 0.3 | — | 212.5 | |||||||||||||||||
Net investment in and advances to subsidiaries | — | — | 279.6 | — | (279.6 | ) | — | ||||||||||||||||
Deferred tax liability | — | — | — | 472.5 | (16.9 | ) | 455.6 | ||||||||||||||||
Other liabilities, net | 8.3 | 14.5 | 35.3 | 95.8 | — | 153.9 | |||||||||||||||||
Discontinued operations | — | — | — | 22.0 | — | 22.0 | |||||||||||||||||
Intercompany notes payable | — | 618.0 | — | 4,966.3 | (5,584.3 | ) | — | ||||||||||||||||
Total liabilities | 1,016.4 | 1,026.0 | 4,181.2 | 7,433.1 | (8,923.1 | ) | 4,733.6 | ||||||||||||||||
MCBC stockholders' equity | 8,267.8 | 5,209.5 | 10,784.5 | 1,746.7 | (18,360.6 | ) | 7,647.9 | ||||||||||||||||
Intercompany notes receivable | (619.9 | ) | (39.3 | ) | (4,925.1 | ) | — | 5,584.3 | — | ||||||||||||||
Total stockholders' equity | 7,647.9 | 5,170.2 | 5,859.4 | 1,746.7 | (12,776.3 | ) | 7,647.9 | ||||||||||||||||
Noncontrolling interests | — | — | — | 42.3 | — | 42.3 | |||||||||||||||||
Total equity | 7,647.9 | 5,170.2 | 5,859.4 | 1,789.0 | (12,776.3 | ) | 7,690.2 | ||||||||||||||||
Total liabilities and equity | $ | 8,664.3 | $ | 6,196.2 | $ | 10,040.6 | $ | 9,222.1 | $ | (21,699.4 | ) | $ | 12,423.8 |
Parent Guarantor and 2007 Issuer | 2002 Issuer | Subsidiary Guarantors | Subsidiary Non Guarantors | Eliminations | Consolidated | ||||||||||||||||||
Assets | |||||||||||||||||||||||
Current assets: | |||||||||||||||||||||||
Cash and cash equivalents | $ | 832.0 | $ | 7.0 | $ | 190.1 | $ | 188.5 | $ | — | $ | 1,217.6 | |||||||||||
Accounts receivable, net | — | 4.2 | 208.9 | 358.5 | (0.8 | ) | 570.8 | ||||||||||||||||
Other receivables, net | 17.2 | 32.7 | 17.8 | 91.0 | — | 158.7 | |||||||||||||||||
Total inventories, net | — | — | 93.3 | 101.7 | — | 195.0 | |||||||||||||||||
Other assets, net | 4.4 | 1.8 | 36.2 | 35.8 | — | 78.2 | |||||||||||||||||
Deferred tax assets | — | — | — | 1.0 | (1.0 | ) | — | ||||||||||||||||
Discontinued operations | — | — | — | 0.6 | — | 0.6 | |||||||||||||||||
Intercompany accounts receivable | 16.3 | 18.9 | 352.5 | 692.3 | (1,080.0 | ) | — | ||||||||||||||||
Total current assets | 869.9 | 64.6 | 898.8 | 1,469.4 | (1,081.8 | ) | 2,220.9 | ||||||||||||||||
Properties, net | 33.6 | 7.1 | 852.3 | 495.7 | — | 1,388.7 | |||||||||||||||||
Goodwill | — | 11.4 | 370.8 | 1,106.9 | — | 1,489.1 | |||||||||||||||||
Other intangibles, net | — | 40.4 | 4,233.9 | 380.8 | — | 4,655.1 | |||||||||||||||||
Investment in MillerCoors | — | — | 2,574.1 | — | — | 2,574.1 | |||||||||||||||||
Net investment in and advances to subsidiaries | 7,540.5 | 4,044.5 | 310.3 | 4,876.8 | (16,772.1 | ) | — | ||||||||||||||||
Deferred tax assets | 183.4 | 108.7 | 15.5 | — | (119.4 | ) | 188.2 | ||||||||||||||||
Other assets, net | 4.8 | 12.9 | 82.3 | 81.5 | — | 181.5 | |||||||||||||||||
Total assets | $ | 8,632.2 | $ | 4,289.6 | $ | 9,338.0 | $ | 8,411.1 | $ | (17,973.3 | ) | $ | 12,697.6 | ||||||||||
Liabilities and equity | |||||||||||||||||||||||
Current liabilities: | |||||||||||||||||||||||
Accounts payable | $ | 5.3 | $ | 0.2 | $ | 80.5 | $ | 183.0 | $ | (0.8 | ) | $ | 268.2 | ||||||||||
Accrued expenses and other liabilities, net | 37.9 | 14.9 | 389.0 | 362.8 | — | 804.6 | |||||||||||||||||
Derivative hedging instruments | 1.5 | 0.3 | 23.8 | 0.8 | — | 26.4 | |||||||||||||||||
Deferred tax liability | 153.5 | — | — | 67.1 | (1.0 | ) | 219.6 | ||||||||||||||||
Current portion of long-term debt and short-term borrowings | — | — | — | 1.1 | — | 1.1 | |||||||||||||||||
Discontinued operations | — | — | — | 14.0 | — | 14.0 | |||||||||||||||||
Intercompany accounts payable | 0.1 | 7.9 | 704.5 | 367.5 | (1,080.0 | ) | — | ||||||||||||||||
Total current liabilities | 198.3 | 23.3 | 1,197.8 | 996.3 | (1,081.8 | ) | 1,333.9 | ||||||||||||||||
Long-term debt | 528.7 | 45.0 | 1,385.9 | — | — | 1,959.6 | |||||||||||||||||
Pension and post-retirement benefits | — | 10.3 | 259.7 | 188.6 | — | 458.6 | |||||||||||||||||
Derivative hedging instruments | — | 40.7 | 363.8 | 0.3 | — | 404.8 | |||||||||||||||||
Net investment in and advances to subsidiaries | — | — | — | — | — | — | |||||||||||||||||
Deferred tax liability | — | 102.2 | 1.5 | 482.4 | (119.4 | ) | 466.7 | ||||||||||||||||
Other liabilities, net | 9.1 | 6.2 | 90.2 | 101.7 | — | 207.2 | |||||||||||||||||
Discontinued operations | — | — | — | 24.2 | — | 24.2 | |||||||||||||||||
Intercompany notes payable | — | — | 3,198.7 | 7,086.8 | (10,285.5 | ) | — | ||||||||||||||||
Total liabilities | 736.1 | 227.7 | 6,497.6 | 8,880.3 | (11,486.7 | ) | 4,855.0 | ||||||||||||||||
MCBC stockholders' equity | 7,898.0 | 4,913.9 | 9,891.8 | 1,867.2 | (16,772.1 | ) | 7,798.8 | ||||||||||||||||
Intercompany notes receivable | (1.9 | ) | (852.0 | ) | (7,051.4 | ) | (2,380.2 | ) | 10,285.5 | — | |||||||||||||
Total stockholders' equity | 7,896.1 | 4,061.9 | 2,840.4 | (513.0 | ) | (6,486.6 | ) | 7,798.8 | |||||||||||||||
Noncontrolling interests | — | — | — | 43.8 | — | 43.8 | |||||||||||||||||
Total equity | 7,896.1 | 4,061.9 | 2,840.4 | (469.2 | ) | (6,486.6 | ) | 7,842.6 | |||||||||||||||
Total liabilities and equity | $ | 8,632.2 | $ | 4,289.6 | $ | 9,338.0 | $ | 8,411.1 | $ | (17,973.3 | ) | $ | 12,697.6 |
Parent Guarantor and 2007 Issuer | 2002 Issuer | Subsidiary Guarantors | Subsidiary Non Guarantors | Eliminations | Consolidated | ||||||||||||||||||
Net cash provided by (used in) operating activities | $ | 253.1 | $ | (603.1 | ) | $ | 2,572.5 | $ | (52.8 | ) | $ | (1,301.6 | ) | $ | 868.1 | ||||||||
CASH FLOWS FROM INVESTING ACTIVITIES: | |||||||||||||||||||||||
Additions to properties | (3.7 | ) | (0.1 | ) | (134.9 | ) | (96.7 | ) | — | (235.4 | ) | ||||||||||||
Proceeds from sales of properties and intangible assets | — | — | 0.7 | 3.9 | — | 4.6 | |||||||||||||||||
Acquisition of business, net of cash acquired | — | — | 0.5 | (41.8 | ) | — | (41.3 | ) | |||||||||||||||
Change in restricted cash balances | — | — | — | 6.7 | — | 6.7 | |||||||||||||||||
Investment in MillerCoors | — | — | (800.1 | ) | — | — | (800.1 | ) | |||||||||||||||
Return of capital from MillerCoors | — | — | 782.7 | — | — | 782.7 | |||||||||||||||||
Investment in and advances to an unconsolidated affiliate | — | — | (93.9 | ) | 10.7 | — | (83.2 | ) | |||||||||||||||
Trade loan repayments from customers | — | — | 0.5 | 21.9 | — | 22.4 | |||||||||||||||||
Trade loans advanced to customers | — | — | (0.1 | ) | (9.8 | ) | — | (9.9 | ) | ||||||||||||||
Proceeds from settlements of derivative instruments | 15.4 | — | — | — | — | 15.4 | |||||||||||||||||
Net intercompany investing activity | 15.4 | 459.5 | (266.4 | ) | — | (208.5 | ) | — | |||||||||||||||
Net cash provided (used in) by investing activities | 27.1 | 459.4 | (511.0 | ) | (105.1 | ) | (208.5 | ) | (338.1 | ) | |||||||||||||
CASH FLOWS FROM FINANCING ACTIVITIES: | |||||||||||||||||||||||
Exercise of stock options under equity compensation plans | 11.6 | — | — | — | — | 11.6 | |||||||||||||||||
Excess tax benefits from share-based compensation | 2.0 | — | — | — | — | 2.0 | |||||||||||||||||
Payments for purchase of treasury stock | (321.1 | ) | — | — | — | — | (321.1 | ) | |||||||||||||||
Dividends paid | (201.4 | ) | (647.9 | ) | (518.3 | ) | (162.1 | ) | 1,301.6 | (228.1 | ) | ||||||||||||
Dividends paid to noncontrolling interest holders | — | — | — | (2.3 | ) | — | (2.3 | ) | |||||||||||||||
Debt issuance costs | (2.2 | ) | — | — | — | — | (2.2 | ) | |||||||||||||||
Payments of long term debt and capital lease obligations | — | — | (0.2 | ) | (0.1 | ) | — | (0.3 | ) | ||||||||||||||
Proceeds from short term borrowings | — | — | — | 6.8 | — | 6.8 | |||||||||||||||||
Payments on short-term borrowings | — | — | — | (18.3 | ) | — | (18.3 | ) | |||||||||||||||
Payments on settlements of debt-related derivatives | — | 195.3 | (299.8 | ) | — | — | (104.5 | ) | |||||||||||||||
Net (payments) proceeds from revolving credit facilities | — | — | — | 2.1 | — | 2.1 | |||||||||||||||||
Change in overdraft balances and other | — | — | — | (10.8 | ) | — | (10.8 | ) | |||||||||||||||
Net intercompany financing activity | — | 589.3 | (1,106.4 | ) | 308.6 | 208.5 | — | ||||||||||||||||
Net cash provided by (used in) financing activities | (511.1 | ) | 136.7 | (1,924.7 | ) | 123.9 | 1,510.1 | (665.1 | ) | ||||||||||||||
CASH AND CASH EQUIVALENTS: | |||||||||||||||||||||||
Net increase (decrease) in cash and cash equivalents | (230.9 | ) | (7.0 | ) | 136.8 | (34.0 | ) | — | (135.1 | ) | |||||||||||||
Effect of foreign exchange rate changes on cash and cash equivalents | — | — | (8.9 | ) | 5.3 | — | (3.6 | ) | |||||||||||||||
Balance at beginning of year | 832.0 | 7.0 | 190.1 | 188.5 | — | 1,217.6 | |||||||||||||||||
Balance at end of period | $ | 601.1 | $ | — | $ | 318.0 | $ | 159.8 | $ | — | $ | 1,078.9 |
Parent Guarantor and 2007 Issuer | 2002 Issuer | Subsidiary Guarantors | Subsidiary Non Guarantors | Eliminations | Consolidated | ||||||||||||||||||
Net cash provided by (used in) operating activities | $ | 491.2 | $ | 184.0 | $ | 1,234.2 | $ | (714.1 | ) | $ | (445.6 | ) | $ | 749.7 | |||||||||
CASH FLOWS FROM INVESTING ACTIVITIES: | |||||||||||||||||||||||
Additions to properties and intangible assets | (5.8 | ) | — | (95.4 | ) | (76.7 | ) | — | (177.9 | ) | |||||||||||||
Proceeds from sales of properties and intangible assets | — | — | 1.2 | 4.0 | — | 5.2 | |||||||||||||||||
Change in restricted cash balances | — | — | — | (10.8 | ) | — | (10.8 | ) | |||||||||||||||
Acquisition of business, net of cash acquired | — | — | — | (19.8 | ) | — | (19.8 | ) | |||||||||||||||
Payment on discontinued operations | — | — | — | (96.0 | ) | — | (96.0 | ) | |||||||||||||||
Investment in MillerCoors | — | (1,071.2 | ) | — | — | — | (1,071.2 | ) | |||||||||||||||
Return of capital from MillerCoors | — | 1,060.3 | — | — | — | 1,060.3 | |||||||||||||||||
Trade loan repayments from customers | — | — | — | 16.6 | — | 16.6 | |||||||||||||||||
Trade loans advanced to customers | — | — | — | (9.1 | ) | — | (9.1 | ) | |||||||||||||||
Proceeds from settlements of derivative instruments | 35.1 | — | — | — | — | 35.1 | |||||||||||||||||
Other | — | 0.1 | — | 0.1 | — | 0.2 | |||||||||||||||||
Net intercompany investing activity | (54.7 | ) | 31.9 | 2,399.0 | (1,367.4 | ) | (1,008.8 | ) | — | ||||||||||||||
Net cash provided (used in) by investing activities | (25.4 | ) | 21.1 | 2,304.8 | (1,559.1 | ) | (1,008.8 | ) | (267.4 | ) | |||||||||||||
CASH FLOWS FROM FINANCING ACTIVITIES: | |||||||||||||||||||||||
Exercise of stock options under equity compensation plans | 38.5 | — | — | — | — | 38.5 | |||||||||||||||||
Excess tax benefits from share-based compensation | 4.8 | — | — | — | — | 4.8 | |||||||||||||||||
Dividends paid | (177.0 | ) | — | (415.3 | ) | (54.4 | ) | 445.6 | (201.1 | ) | |||||||||||||
Dividends paid to noncontrolling interest holders | — | — | — | (3.7 | ) | — | (3.7 | ) | |||||||||||||||
Proceeds from issuances of long-term debt | — | — | 488.4 | — | — | 488.4 | |||||||||||||||||
Debt issuance costs | — | — | (3.3 | ) | — | — | (3.3 | ) | |||||||||||||||
Payments of long-term debt and capital lease obligations | — | — | (300.0 | ) | — | — | (300.0 | ) | |||||||||||||||
Proceeds from short-term borrowings | — | — | — | 12.1 | — | 12.1 | |||||||||||||||||
Payments on short-term borrowings | — | — | — | (8.1 | ) | — | (8.1 | ) | |||||||||||||||
Payments on settlements of debt-related derivatives | — | — | (42.0 | ) | — | — | (42.0 | ) | |||||||||||||||
Change in overdraft balances and other | — | — | — | 6.8 | — | 6.8 | |||||||||||||||||
Net intercompany financing activity | 107.1 | (198.1 | ) | (3,263.7 | ) | 2,345.9 | 1,008.8 | — | |||||||||||||||
Net cash provided by (used in) financing activities | (26.6 | ) | (198.1 | ) | (3,535.9 | ) | 2,298.6 | 1,454.4 | (7.6 | ) | |||||||||||||
CASH AND CASH EQUIVALENTS: | |||||||||||||||||||||||
Net increase (decrease) in cash and cash equivalents | 439.2 | 7.0 | 3.1 | 25.4 | — | 474.7 | |||||||||||||||||
Effect of foreign exchange rate changes on cash and cash equivalents | — | — | 11.9 | (3.2 | ) | — | 8.7 | ||||||||||||||||
Balance at beginning of year | 392.8 | — | 175.1 | 166.3 | — | 734.2 | |||||||||||||||||
Balance at end of period | $ | 832.0 | $ | 7.0 | $ | 190.1 | $ | 188.5 | $ | — | $ | 1,217.6 |
Parent Guarantor and 2007 Issuer | 2002 Issuer | Subsidiary Guarantors | Subsidiary Non Guarantors | Eliminations | Consolidated | ||||||||||||||||||
Net cash provided by (used in) operating activities | $ | 268.4 | $ | 151.5 | $ | 638.4 | $ | (39.2 | ) | $ | (160.8 | ) | $ | 858.3 | |||||||||
CASH FLOWS FROM INVESTING ACTIVITIES: | |||||||||||||||||||||||
Additions to properties and intangible assets | (16.2 | ) | — | (77.5 | ) | (65.1 | ) | — | (158.8 | ) | |||||||||||||
Proceeds from sales of properties and intangible assets | 1.2 | — | 0.7 | 56.1 | — | 58.0 | |||||||||||||||||
Acquisition of business, net of cash acquired | — | — | — | (41.7 | ) | (41.7 | ) | ||||||||||||||||
Investment in MillerCoors | — | (514.5 | ) | — | — | — | (514.5 | ) | |||||||||||||||
Return of capital from MillerCoors | — | 448.2 | — | — | — | 448.2 | |||||||||||||||||
Deconsolidation of Brewers' Retail, Inc. | — | — | (26.1 | ) | (26.1 | ) | |||||||||||||||||
Trade loan repayments from customers | — | — | — | 32.1 | — | 32.1 | |||||||||||||||||
Trade loans advanced to customers | — | — | — | (25.5 | ) | — | (25.5 | ) | |||||||||||||||
Other | — | 0.1 | — | — | — | 0.1 | |||||||||||||||||
Net intercompany investing activity | (33.1 | ) | (93.1 | ) | (2,506.4 | ) | (1,421.4 | ) | 4,054.0 | — | |||||||||||||
Net cash provided by (used in) investing activities | (48.1 | ) | (159.3 | ) | (2,609.3 | ) | (1,465.5 | ) | 4,054.0 | (228.2 | ) | ||||||||||||
CASH FLOWS FROM FINANCING ACTIVITIES: | |||||||||||||||||||||||
Exercise of stock options under equity compensation plans | 43.1 | — | — | — | — | 43.1 | |||||||||||||||||
Excess tax benefits from share-based compensation | 21.7 | — | — | — | — | 21.7 | |||||||||||||||||
Dividends paid | (148.4 | ) | — | — | (182.8 | ) | 160.8 | (170.4 | ) | ||||||||||||||
Dividends paid to noncontrolling interest holders | — | (2.9 | ) | — | (2.9 | ) | |||||||||||||||||
Payments of long term-debt and capital lease obligations | — | — | (0.1 | ) | (0.3 | ) | — | (0.4 | ) | ||||||||||||||
Proceeds from short-term borrowings | — | — | 2.6 | 12.1 | — | 14.7 | |||||||||||||||||
Payments on short-term borrowings | — | — | (2.6 | ) | (14.4 | ) | — | (17.0 | ) | ||||||||||||||
Change in overdraft balances and other | — | — | (0.3 | ) | (5.7 | ) | — | (6.0 | ) | ||||||||||||||
Net intercompany financing activity | 171.2 | 7.3 | 2,114.7 | 1,761.1 | (4,054.3 | ) | — | ||||||||||||||||
Net cash provided by (used in) financing activities | 87.6 | 7.3 | 2,114.3 | 1,567.1 | (3,893.5 | ) | (117.2 | ) | |||||||||||||||
CASH AND CASH EQUIVALENTS: | |||||||||||||||||||||||
Net increase (decrease) in cash and cash equivalents | 307.9 | (0.5 | ) | 143.3 | 62.2 | — | 512.9 | ||||||||||||||||
Effect of foreign exchange rate changes on cash and cash equivalents | — | 0.1 | 7.6 | (2.6 | ) | — | 5.1 | ||||||||||||||||
Balance at beginning of year | 84.9 | 0.4 | 24.2 | 106.7 | — | 216.2 | |||||||||||||||||
Balance at end of period | $ | 392.8 | $ | — | $ | 175.1 | $ | 166.3 | $ | — | $ | 734.2 |
|
2011 | First | Second | Third | Fourth | Full Year | ||||||||||||||
(In millions, except per share data) | |||||||||||||||||||
Sales | $ | 997.3 | $ | 1,383.1 | $ | 1,393.9 | $ | 1,395.6 | $ | 5,169.9 | |||||||||
Excise taxes | (306.9 | ) | (449.5 | ) | (439.5 | ) | (458.3 | ) | (1,654.2 | ) | |||||||||
Net sales | 690.4 | 933.6 | 954.4 | 937.3 | 3,515.7 | ||||||||||||||
Cost of goods sold | (427.2 | ) | (523.9 | ) | (550.5 | ) | (547.5 | ) | (2,049.1 | ) | |||||||||
Gross profit | $ | 263.2 | $ | 409.7 | $ | 403.9 | $ | 389.8 | $ | 1,466.6 | |||||||||
Amounts attributable to MCBC: | |||||||||||||||||||
Income from continuing operations | $ | 82.6 | $ | 224.3 | $ | 194.7 | $ | 172.4 | $ | 674.0 | |||||||||
Gain (loss) from discontinued operations, net of tax | 0.3 | (1.5 | ) | 2.7 | 0.8 | 2.3 | |||||||||||||
Net income | $ | 82.9 | $ | 222.8 | $ | 197.4 | $ | 173.2 | $ | 676.3 | |||||||||
Basic income (loss) per share: | |||||||||||||||||||
From continuing operations | 0.44 | 1.20 | 1.05 | 0.95 | 3.65 | ||||||||||||||
From discontinued operations | — | (0.01 | ) | 0.01 | — | 0.01 | |||||||||||||
Basic net income per share | 0.44 | 1.19 | 1.06 | 0.95 | 3.66 | ||||||||||||||
Diluted income (loss) per share: | |||||||||||||||||||
From continuing operations | 0.44 | 1.19 | 1.05 | 0.95 | 3.62 | ||||||||||||||
From discontinued operations | — | (0.01 | ) | 0.01 | — | 0.01 | |||||||||||||
Diluted net income per share | 0.44 | 1.18 | 1.06 | 0.95 | 3.63 |
2010 | First | Second | Third | Fourth | Full Year | ||||||||||||||
(In millions, except per share data) | |||||||||||||||||||
Sales | $ | 947.0 | $ | 1,282.6 | $ | 1,260.1 | $ | 1,213.4 | $ | 4,703.1 | |||||||||
Excise taxes | (286.0 | ) | (399.3 | ) | (385.1 | ) | (378.3 | ) | (1,448.7 | ) | |||||||||
Net sales | 661.0 | 883.3 | 875.0 | 835.1 | 3,254.4 | ||||||||||||||
Cost of goods sold | (404.4 | ) | (474.8 | ) | (457.4 | ) | (475.6 | ) | (1,812.2 | ) | |||||||||
Gross profit | $ | 256.6 | $ | 408.5 | $ | 417.6 | $ | 359.5 | $ | 1,442.2 | |||||||||
Amounts attributable to MCBC: | |||||||||||||||||||
Income from continuing operations | $ | 62.0 | $ | 237.8 | $ | 257.0 | $ | 111.3 | $ | 668.1 | |||||||||
Gain (loss) from discontinued operations, net of tax | 42.6 | (0.6 | ) | (0.9 | ) | (1.5 | ) | 39.6 | |||||||||||
Net income | $ | 104.6 | $ | 237.2 | $ | 256.1 | $ | 109.8 | $ | 707.7 | |||||||||
Basic income (loss) per share: | |||||||||||||||||||
From continuing operations | $ | 0.33 | $ | 1.28 | $ | 1.39 | $ | 0.60 | $ | 3.59 | |||||||||
From discontinued operations | 0.23 | — | (0.01 | ) | (0.01 | ) | 0.21 | ||||||||||||
Basic net income per share | $ | 0.56 | $ | 1.28 | $ | 1.38 | $ | 0.59 | $ | 3.80 | |||||||||
Diluted income (loss) per share: | |||||||||||||||||||
From continuing operations | $ | 0.33 | $ | 1.27 | $ | 1.38 | $ | 0.59 | $ | 3.57 | |||||||||
From discontinued operations | 0.23 | — | (0.01 | ) | (0.01 | ) | 0.21 | ||||||||||||
Diluted net income per share | $ | 0.56 | $ | 1.27 | $ | 1.37 | $ | 0.58 | $ | 3.78 |
|
Balance at beginning of year | Additions charged to costs and expenses | Deductions(1) | Foreign exchange impact | Balance at end of year | |||||||||||||||
Allowance for doubtful accounts—trade accounts receivable | |||||||||||||||||||
Year ended: | |||||||||||||||||||
December 31, 2011 | $ | 7.4 | $ | 3.7 | $ | (0.7 | ) | $ | (0.1 | ) | $ | 10.3 | |||||||
December 25, 2010 | $ | 10.1 | $ | 3.8 | $ | (6.2 | ) | $ | (0.3 | ) | $ | 7.4 | |||||||
December 26, 2009 | $ | 7.9 | $ | 5.0 | $ | (3.6 | ) | $ | 0.8 | $ | 10.1 | ||||||||
Allowance for doubtful accounts—current trade loans | |||||||||||||||||||
Year ended: | |||||||||||||||||||
December 31, 2011 | $ | 2.5 | $ | 1.6 | $ | (2.4 | ) | $ | 0.1 | $ | 1.8 | ||||||||
December 25, 2010 | $ | 2.8 | $ | 1.4 | $ | (1.7 | ) | $ | — | $ | 2.5 | ||||||||
December 26, 2009 | $ | 3.3 | $ | 1.4 | $ | (2.1 | ) | $ | 0.2 | $ | 2.8 | ||||||||
Allowance for doubtful accounts—long-term trade loans | |||||||||||||||||||
Year ended: | |||||||||||||||||||
December 31, 2011 | $ | 6.6 | $ | 2.5 | $ | (4.8 | ) | $ | 0.1 | $ | 4.4 | ||||||||
December 25, 2010 | $ | 7.3 | $ | 4.0 | $ | (4.5 | ) | $ | (0.2 | ) | $ | 6.6 | |||||||
December 26, 2009 | $ | 8.1 | $ | 4.1 | $ | (5.6 | ) | $ | 0.7 | $ | 7.3 | ||||||||
Allowance for obsolete supplies | |||||||||||||||||||
Year ended: | |||||||||||||||||||
December 31, 2011 | $ | 4.1 | $ | 2.0 | $ | (0.2 | ) | $ | — | $ | 5.9 | ||||||||
December 25, 2010 | $ | 4.1 | $ | 0.4 | $ | (0.3 | ) | $ | (0.1 | ) | $ | 4.1 | |||||||
December 26, 2009 | $ | 4.6 | $ | — | $ | (0.9 | ) | $ | 0.4 | $ | 4.1 | ||||||||
Deferred tax valuation account | |||||||||||||||||||
Year ended: | |||||||||||||||||||
December 31, 2011 | $ | 39.0 | $ | 2.4 | $ | (12.3 | ) | $ | (0.1 | ) | $ | 29.0 | |||||||
December 25, 2010 | $ | 19.6 | $ | 18.6 | $ | (0.3 | ) | $ | 1.1 | $ | 39.0 | ||||||||
December 26, 2009 | $ | 12.9 | $ | 15.1 | $ | (10.6 | ) | $ | 2.2 | $ | 19.6 |
(1) | Amounts related to write-offs of uncollectible accounts, claims or obsolete inventories and supplies. Amounts related to the deferred tax asset valuation allowance are primarily due to capital loss carryforwards generated by coffee credit settlements in discontinued operations, re-evaluations of deferred tax assets and our investment in Brewers' Retail Inc, which, if sold, would result in a capital loss. |
|
|
For the fiscal years ended | ||||||||||||
December 31, 2011 | December 25, 2010 | December 26, 2009 | ||||||||||
(In millions) | ||||||||||||
Cash paid for interest | $ | 102.3 | $ | 87.0 | $ | 76.0 | ||||||
Cash paid for taxes | $ | 62.7 | $ | 38.4 | $ | 50.9 | ||||||
Receipt of note upon sale of property | $ | — | $ | 5.3 | $ | — | ||||||
Issuance of restricted stock, net of forfeitures | $ | 9.3 | $ | 9.8 | $ | 8.9 | ||||||
Issuance of performance shares, net of forfeitures | $ | 7.0 | $ | 7.4 | $ | 14.1 |
Balance at December 26, 2009 | $ | 10.1 | |
Additions charged to expense, net of recoveries | 5.4 | ||
Write-offs | (6.2 | ) | |
Foreign currency and other adjustments | (0.2 | ) | |
Balance at December 25, 2010 | $ | 9.1 | |
Additions charged to expense, net of recoveries | 4.1 | ||
Write-offs | (7.2 | ) | |
Foreign currency and other adjustments | 0.2 | ||
Balance at December 31, 2011 | $ | 6.2 |
|
For the years ended | |||||||
December 31, 2011 | December 25, 2010 | ||||||
Canada plans | U.S. plan | Canada plans | U.S. plan | ||||
Key assumptions: | |||||||
Weighted average settlement discount rate | 4.67% | 4.35% | 5.34% | 5.05% | |||
Health care cost trend rate | Ranging ratably from 8.0% in 2012 to 5.0% in 2018 | Ranging ratably from 8.2% in 2012 to 4.5% in 2028 | Ranging ratably from 8.5% in 2011 to 5.0% in 2018 | Ranging ratably from 8.2% in 2011 to 4.5% in 2028 |
For the year ended December 31, 2011 | |||||||||||||||||||
Canada plans | U.S. plan | U.K. plan | MCI plan | Consolidated | |||||||||||||||
(In millions) | |||||||||||||||||||
Components of net periodic pension cost (benefit): | |||||||||||||||||||
Service cost—benefits earned during the year | $ | 18.8 | $ | — | $ | — | — | $ | 18.8 | ||||||||||
Interest cost on projected benefit obligation | 72.4 | — | 108.1 | — | 180.5 | ||||||||||||||
Expected return on plan assets | (73.9 | ) | — | (125.5 | ) | — | (199.4 | ) | |||||||||||
Amortization of prior service cost | 0.8 | — | — | — | 0.8 | ||||||||||||||
Amortization of net actuarial loss | 9.4 | — | 10.8 | — | 20.2 | ||||||||||||||
Less expected participant contributions | (1.6 | ) | — | — | — | (1.6 | ) | ||||||||||||
Net periodic pension cost (benefit) | $ | 25.9 | $ | — | $ | (6.6 | ) | $ | — | $ | 19.3 |
For the year ended December 25, 2010 | |||||||||||||||||||
Canada plans | U.S. plan | U.K. plan | MCI plan | Consolidated | |||||||||||||||
(In millions) | |||||||||||||||||||
Components of net periodic pension cost (benefit): | |||||||||||||||||||
Service cost—benefits earned during the year | $ | 17.4 | $ | — | $ | — | $ | — | $ | 17.4 | |||||||||
Interest cost on projected benefit obligation | 71.8 | 0.4 | 116.1 | — | 188.3 | ||||||||||||||
Expected return on plan assets | (70.1 | ) | — | (109.8 | ) | — | (179.9 | ) | |||||||||||
Amortization of prior service cost | 0.8 | (0.1 | ) | — | — | 0.7 | |||||||||||||
Amortization of net actuarial loss | 1.3 | — | 12.3 | — | 13.6 | ||||||||||||||
Curtailment loss | 1.8 | — | — | — | 1.8 | ||||||||||||||
Less expected participant and National Insurance contributions | (2.0 | ) | — | — | — | (2.0 | ) | ||||||||||||
Net periodic pension cost (benefit) | $ | 21.0 | $ | 0.3 | $ | 18.6 | $ | — | $ | 39.9 |
For the year ended December 26, 2009 | |||||||||||||||||||
Canada plans | U.S. plan | U.K. plan | MCI plan | Consolidated | |||||||||||||||
(In millions) | |||||||||||||||||||
Components of net periodic pension cost (benefit): | |||||||||||||||||||
Service cost—benefits earned during the year | $ | 15.0 | $ | — | $ | 4.6 | — | $ | 19.6 | ||||||||||
Interest cost on projected benefit obligation | 69.5 | 0.4 | 107.6 | — | 177.5 | ||||||||||||||
Expected return on plan assets | (68.3 | ) | — | (122.3 | ) | — | (190.6 | ) | |||||||||||
Amortization of prior service cost | 0.7 | — | — | — | 0.7 | ||||||||||||||
Amortization of net actuarial loss | 0.1 | 0.4 | — | — | 0.5 | ||||||||||||||
Special termination benefits | 5.3 | — | — | — | 5.3 | ||||||||||||||
Less expected participant and National Insurance contributions | (1.9 | ) | — | (0.5 | ) | — | (2.4 | ) | |||||||||||
Net periodic pension cost | $ | 20.4 | $ | 0.8 | $ | (10.6 | ) | $ | — | $ | 10.6 |
For the year ended December 31, 2011 | |||||||||||
Canada plans | U.S. plan | Consolidated | |||||||||
(In millions) | |||||||||||
Components of net periodic postretirement benefit cost: | |||||||||||
Service cost—benefits earned during the period | $ | 2.2 | $ | 0.2 | $ | 2.4 | |||||
Interest cost on projected benefit obligation | 7.6 | 0.1 | 7.7 | ||||||||
Amortization of prior service gain | (3.8 | ) | — | (3.8 | ) | ||||||
Amortization of net actuarial gain | (3.5 | ) | 0.1 | (3.4 | ) | ||||||
Net periodic postretirement benefit cost | $ | 2.5 | $ | 0.4 | $ | 2.9 |
For the year ended December 25, 2010 | |||||||||||
Canada plans | U.S. plan | Consolidated | |||||||||
(In millions) | |||||||||||
Components of net periodic postretirement benefit cost: | |||||||||||
Service cost—benefits earned during the period | $ | 2.4 | $ | 0.1 | $ | 2.5 | |||||
Interest cost on projected benefit obligation | 9.3 | 0.1 | 9.4 | ||||||||
Amortization of prior service gain | (3.6 | ) | — | (3.6 | ) | ||||||
Amortization of net actuarial gain | (0.1 | ) | — | (0.1 | ) | ||||||
Net periodic postretirement benefit cost | $ | 8.0 | $ | 0.2 | $ | 8.2 |
For the year ended December 26, 2009 | |||||||||||
Canada plans | U.S. plan | Consolidated | |||||||||
(In millions) | |||||||||||
Components of net periodic postretirement benefit cost: | |||||||||||
Service cost—benefits earned during the period | $ | 2.9 | $ | 0.1 | $ | 3.0 | |||||
Interest cost on projected benefit obligation | 9.3 | 0.1 | 9.4 | ||||||||
Amortization of prior service cost | (2.5 | ) | — | (2.5 | ) | ||||||
Amortization of net actuarial loss | (0.9 | ) | — | (0.9 | ) | ||||||
Net periodic postretirement benefit cost | $ | 8.8 | $ | 0.2 | $ | 9.0 |
As of December 31, 2011 | |||||||||||
Canada Plans | U.S. Plan | Consolidated | |||||||||
(In millions) | |||||||||||
Change in projected postretirement benefit obligation: | |||||||||||
Projected postretirement benefit obligation at beginning of year | $ | 141.3 | $ | 2.5 | $ | 143.8 | |||||
Service cost | 2.2 | 0.2 | 2.4 | ||||||||
Interest cost | 7.6 | 0.1 | 7.7 | ||||||||
Actuarial loss (gain) | 24.7 | — | 24.7 | ||||||||
Benefits paid, net of participant contributions | (7.5 | ) | — | (7.5 | ) | ||||||
Foreign currency exchange rate change | (2.7 | ) | — | (2.7 | ) | ||||||
Projected postretirement benefit obligation at end of year | $ | 165.6 | $ | 2.8 | $ | 168.4 | |||||
Funded status—Unfunded: | |||||||||||
Accumulated postretirement benefit obligation | $ | (165.6 | ) | $ | (2.8 | ) | $ | (168.4 | ) | ||
Amounts recognized in the Consolidated Balance Sheet: | |||||||||||
Accrued expenses and other liabilities | $ | (7.6 | ) | $ | (0.1 | ) | $ | (7.7 | ) | ||
Pension and postretirement benefits | (158.0 | ) | (2.7 | ) | (160.7 | ) | |||||
Net amounts recognized | $ | (165.6 | ) | $ | (2.8 | ) | $ | (168.4 | ) | ||
Amounts in Accumulated Other Comprehensive (Income) Loss unrecognized as components of net periodic pension cost, pre-tax: | |||||||||||
Net actuarial (gain) loss | $ | (15.1 | ) | $ | 1.1 | $ | (14.0 | ) | |||
Net prior service credit | (10.6 | ) | — | (10.6 | ) | ||||||
Total unrecognized | $ | (25.7 | ) | $ | 1.1 | $ | (24.6 | ) |
As of December 25, 2010 | |||||||||||
Canada Plans | U.S. Plan | Consolidated | |||||||||
(In millions) | |||||||||||
Change in projected postretirement benefit obligation: | |||||||||||
Projected postretirement benefit obligation at beginning of year | $ | 158.2 | $ | 1.5 | $ | 159.7 | |||||
Service cost | 2.4 | 0.1 | 2.5 | ||||||||
Interest cost | 9.3 | 0.1 | 9.4 | ||||||||
Actuarial loss (gain) | (28.5 | ) | 0.8 | (27.7 | ) | ||||||
Benefits paid, net of participant contributions | (6.1 | ) | — | (6.1 | ) | ||||||
Foreign currency exchange rate change | 6.0 | — | 6.0 | ||||||||
Projected postretirement benefit obligation at end of year | $ | 141.3 | $ | 2.5 | $ | 143.8 | |||||
Funded status—Unfunded: | |||||||||||
Accumulated postretirement benefit obligation | $ | (141.3 | ) | $ | (2.5 | ) | $ | (143.8 | ) | ||
Amounts recognized in the Consolidated Balance Sheet: | |||||||||||
Accrued expenses and other liabilities | $ | (7.2 | ) | $ | — | $ | (7.2 | ) | |||
Pension and postretirement benefits | (134.1 | ) | (2.5 | ) | (136.6 | ) | |||||
Net amounts recognized | $ | (141.3 | ) | $ | (2.5 | ) | $ | (143.8 | ) | ||
Amounts in Accumulated Other Comprehensive (Income) Loss unrecognized as components of net periodic pension cost, pre-tax: | |||||||||||
Net actuarial (gain) loss | $ | (40.0 | ) | $ | 1.2 | $ | (38.8 | ) | |||
Net prior service credit | (13.7 | ) | — | (13.7 | ) | ||||||
Total unrecognized | $ | (53.7 | ) | $ | 1.2 | $ | (52.5 | ) |
As of December 31, 2011 | |||||||||||
Canada Plans | U.S. Plan | Consolidated | |||||||||
(In millions) | |||||||||||
Change in projected postretirement benefit obligation: | |||||||||||
Projected postretirement benefit obligation at beginning of year | $ | 141.3 | $ | 2.5 | $ | 143.8 | |||||
Service cost | 2.2 | 0.2 | 2.4 | ||||||||
Interest cost | 7.6 | 0.1 | 7.7 | ||||||||
Actuarial loss (gain) | 24.7 | — | 24.7 | ||||||||
Benefits paid, net of participant contributions | (7.5 | ) | — | (7.5 | ) | ||||||
Foreign currency exchange rate change | (2.7 | ) | — | (2.7 | ) | ||||||
Projected postretirement benefit obligation at end of year | $ | 165.6 | $ | 2.8 | $ | 168.4 | |||||
Funded status—Unfunded: | |||||||||||
Accumulated postretirement benefit obligation | $ | (165.6 | ) | $ | (2.8 | ) | $ | (168.4 | ) | ||
Amounts recognized in the Consolidated Balance Sheet: | |||||||||||
Accrued expenses and other liabilities | $ | (7.6 | ) | $ | (0.1 | ) | $ | (7.7 | ) | ||
Pension and postretirement benefits | (158.0 | ) | (2.7 | ) | (160.7 | ) | |||||
Net amounts recognized | $ | (165.6 | ) | $ | (2.8 | ) | $ | (168.4 | ) | ||
Amounts in Accumulated Other Comprehensive (Income) Loss unrecognized as components of net periodic pension cost, pre-tax: | |||||||||||
Net actuarial (gain) loss | $ | (15.1 | ) | $ | 1.1 | $ | (14.0 | ) | |||
Net prior service credit | (10.6 | ) | — | (10.6 | ) | ||||||
Total unrecognized | $ | (25.7 | ) | $ | 1.1 | $ | (24.6 | ) |
Canada plans | U.S. plan | Total | |||||||||
(In millions) | |||||||||||
Accumulated other comprehensive income as of December 26, 2009 | $ | (30.0 | ) | $ | 0.4 | $ | (29.6 | ) | |||
Deconsolidation of Brewers' Retail, Inc. | — | — | — | ||||||||
Amortization of prior service costs | 3.6 | — | 3.6 | ||||||||
Amortization of net actuarial loss | 0.1 | — | 0.1 | ||||||||
Current year actuarial loss (gain) | (29.3 | ) | 0.8 | (28.5 | ) | ||||||
Amendments | — | — | — | ||||||||
Foreign currency exchange rate change | 1.9 | — | 1.9 | ||||||||
Accumulated other comprehensive income as of December 25, 2010 | $ | (53.7 | ) | $ | 1.2 | $ | (52.5 | ) | |||
Amortization of prior service costs | 3.8 | — | 3.8 | ||||||||
Amortization of net actuarial loss | 3.5 | (0.1 | ) | 3.4 | |||||||
Current year actuarial loss (gain) | 24.9 | — | 24.9 | ||||||||
Foreign currency exchange rate change | (4.2 | ) | — | (4.2 | ) | ||||||
Accumulated other comprehensive income as of December 31, 2011 | $ | (25.7 | ) | $ | 1.1 | $ | (24.6 | ) |
Amount | |||
(In millions) | |||
Amortization of net prior service cost (gain) | $ | (3.7 | ) |
Amortization of actuarial net loss (gain) | $ | (0.2 | ) |
Amount | |||
(In millions) | |||
2012 | $ | 7.7 | |
2013 | $ | 8.2 | |
2014 | $ | 8.7 | |
2015 | $ | 8.6 | |
2016 | $ | 9.0 | |
2017-2022 | $ | 58.8 |
1% point increase (unfavorable) | 1% point decrease favorable | ||||||
(In millions) | |||||||
Canada plans | |||||||
Effect on total of service and interest cost components | $ | (1.2 | ) | $ | 1.1 | ||
Effect on postretirement benefit obligation | $ | (18.1 | ) | $ | 16.6 | ||
U.S. plan | |||||||
Effect on total of service and interest cost components | $ | — | $ | — | |||
Effect on postretirement benefit obligation | $ | (0.3 | ) | $ | 0.3 |
|
Year ended December 31, 2011 | |||||||||||||||||||||||||||
Canada | U.S. | U.K. | MCI | Corporate | Eliminations(1) | Consolidated | |||||||||||||||||||||
(In millions) | |||||||||||||||||||||||||||
Net sales | $ | 2,067.3 | $ | — | $ | 1,333.5 | $ | 122.6 | $ | 1.3 | $ | (9.0 | ) | $ | 3,515.7 | ||||||||||||
Interest expense | — | — | — | — | (118.7 | ) | — | (118.7 | ) | ||||||||||||||||||
Interest income | — | — | 6.3 | — | 4.4 | — | 10.7 | ||||||||||||||||||||
Income (loss) from continuing operations before income taxes | $ | 474.9 | $ | 457.9 | $ | 99.3 | $ | (33.3 | ) | $ | (224.6 | ) | $ | — | $ | 774.2 | |||||||||||
Income tax benefit (expense) | (99.4 | ) | |||||||||||||||||||||||||
Net income (loss) from continuing operations | 674.8 | ||||||||||||||||||||||||||
Less: Net (income) loss attributable to noncontrolling interests | (0.8 | ) | |||||||||||||||||||||||||
Net income (loss) from continuing operations attributable to MCBC | $ | 674.0 |
Year ended December 25, 2010 | |||||||||||||||||||||||
Canada | U.S. | U.K. | MCI | Corporate | Consolidated | ||||||||||||||||||
(In millions) | |||||||||||||||||||||||
Net sales | $ | 1,938.2 | $ | — | $ | 1,234.9 | $ | 80.0 | $ | 1.3 | $ | 3,254.4 | |||||||||||
Interest expense | — | — | — | — | (110.2 | ) | (110.2 | ) | |||||||||||||||
Interest income | — | — | 6.7 | — | 4.1 | 10.8 | |||||||||||||||||
Income (loss) from continuing operations before income taxes | $ | 454.0 | $ | 456.1 | $ | 95.3 | $ | (25.7 | ) | $ | (170.7 | ) | $ | 809.0 | |||||||||
Income tax benefit (expense) | (138.7 | ) | |||||||||||||||||||||
Net income (loss) from continuing operations | 670.3 | ||||||||||||||||||||||
Less: Net (income) loss attributable to noncontrolling interests | (2.2 | ) | |||||||||||||||||||||
Net income (loss) from continuing operations attributable to MCBC | $ | 668.1 |
Year ended December 26, 2009 | |||||||||||||||||||||||
Canada | U.S. | U.K. | MCI | Corporate | Consolidated | ||||||||||||||||||
(In millions) | |||||||||||||||||||||||
Net sales | $ | 1,732.3 | $ | — | $ | 1,226.2 | $ | 72.9 | $ | 1.0 | $ | 3,032.4 | |||||||||||
Interest expense | — | — | — | — | (96.6 | ) | (96.6 | ) | |||||||||||||||
Interest income | — | — | 8.3 | — | 2.4 | 10.7 | |||||||||||||||||
Income (loss) from continuing operations before income taxes | $ | 462.6 | $ | 382.0 | $ | 90.8 | $ | (21.6 | ) | $ | (196.3 | ) | $ | 717.5 | |||||||||
Income tax benefit (expense) | 14.7 | ||||||||||||||||||||||
Net income (loss) from continuing operations | 732.2 | ||||||||||||||||||||||
Less: Net (income) loss attributable to noncontrolling interests | (2.8 | ) | |||||||||||||||||||||
Net income (loss) from continuing operations attributable to MCBC | $ | 729.4 |
As of | ||||||||
December 31, 2011 | December 25, 2010 | |||||||
(In millions) | ||||||||
Canada | $ | 6,541.6 | $ | 6,548.9 | ||||
U.S.(1) | 2,487.9 | 2,574.1 | ||||||
U.K. | 2,293.4 | 2,276.2 | ||||||
MCI(1) | 151.7 | 86.7 | ||||||
Corporate(1) | 948.9 | 1,211.1 | ||||||
Discontinued operations | 0.3 | 0.6 | ||||||
Consolidated total assets | $ | 12,423.8 | $ | 12,697.6 |
(1) | The decrease in Corporate is primarily due to the reduction in cash balances. The decrease in the U.S. is driven primarily by our share of the change in MillerCoors accumulated other comprehensive income ("AOCI") thereby decreasing our Investment in MillerCoors . These decreases are partially offset by the increase in MCI, which is primarily due to our increased investment in our International markets, such as our acquisition of a controlling stake in MC Cobra India. |
For the years ended | |||||||||||
December 31, 2011 | December 25, 2010 | December 26, 2009 | |||||||||
(In millions) | |||||||||||
Depreciation and amortization(1): | |||||||||||
Canada | $ | 125.0 | $ | 122.3 | $ | 120.6 | |||||
United Kingdom | 75.6 | 67.5 | 77.6 | ||||||||
MCI | 3.2 | 0.8 | 0.2 | ||||||||
Corporate | 13.3 | 11.7 | 9.6 | ||||||||
Consolidated depreciation and amortization | $ | 217.1 | $ | 202.3 | $ | 208.0 | |||||
Capital expenditures(2): | |||||||||||
Canada | $ | 138.8 | $ | 97.8 | $ | 77.6 | |||||
United Kingdom | 80.3 | 70.0 | 64.6 | ||||||||
MCI | 12.4 | 4.2 | 0.1 | ||||||||
Corporate | 3.9 | 5.9 | 16.5 | ||||||||
Consolidated capital expenditures | $ | 235.4 | $ | 177.9 | $ | 158.8 |
(1) | Depreciation and amortization amounts do not reflect amortization of bond discounts, fees, or other debt-related items. |
(2) | Capital expenditures increased in 2011 driven by the addition of a high-speed can line in our Montréal brewery. |
For the years ended | ||||||||||||
December 31, 2011 | December 25, 2010 | December 26, 2009 | ||||||||||
(In millions) | ||||||||||||
Net sales to unaffiliated customers: | ||||||||||||
Canada | $ | 1,987.4 | $ | 1,894.9 | $ | 1,687.0 | ||||||
United States and its territories | 81.3 | 44.6 | 46.3 | |||||||||
United Kingdom | 1,313.9 | 1,217.7 | 1,180.3 | |||||||||
Other foreign countries | 133.1 | 97.2 | 118.8 | |||||||||
Consolidated net sales | $ | 3,515.7 | $ | 3,254.4 | $ | 3,032.4 |
As of | ||||||||
December 31, 2011 | December 25, 2010 | |||||||
(In millions) | ||||||||
Properties(1): | ||||||||
Canada | $ | 877.5 | $ | 864.7 | ||||
United States and its territories | 35.7 | 41.8 | ||||||
United Kingdom | 456.3 | 441.9 | ||||||
Other foreign countries | 60.6 | 40.3 | ||||||
Consolidated net properties | $ | 1,430.1 | $ | 1,388.7 |
(1) | Includes net properties based on geographic location. The increase to Other foreign countries is primarily attributable to our acquisition of a controlling stake in MC Cobra India. |
|
As of | ||||||||
December 31, 2011 | December 31, 2010 | |||||||
Current assets | $ | 810.9 | $ | 815.9 | ||||
Non-current assets | 8,861.7 | 8,972.1 | ||||||
Total assets | $ | 9,672.6 | $ | 9,788.0 | ||||
Current liabilities | $ | 922.7 | $ | 932.9 | ||||
Non-current liabilities | 1,471.3 | 1,273.4 | ||||||
Total liabilities | 2,394.0 | 2,206.3 | ||||||
Noncontrolling interests | 36.7 | 30.5 | ||||||
Owners' equity | 7,241.9 | 7,551.2 | ||||||
Total liabilities and equity | $ | 9,672.6 | $ | 9,788.0 |
For the years ended | |||||||||||
December 31, 2011 | December 31, 2010 | December 31, 2009 | |||||||||
Net sales | $ | 7,550.2 | $ | 7,570.6 | $ | 7,574.3 | |||||
Cost of goods sold | (4,647.9 | ) | (4,686.3 | ) | (4,720.9 | ) | |||||
Gross profit | $ | 2,902.3 | $ | 2,884.3 | $ | 2,853.4 | |||||
Operating income(1) | $ | 1,020.3 | $ | 1,078.9 | $ | 866.1 | |||||
Net income attributable to MillerCoors(1) | $ | 1,003.8 | $ | 1,057.0 | $ | 842.8 |
(1) | Fiscal year 2011 includes special charges of $60.0 million for a write-down in the value of the Sparks brand and a $50.9 million charge resulting from the planned assumption of the Milwaukee Brewery Worker's Pension Plan, an underfunded multi-employer pension plan. |
For the years ended | ||||||||||||
December 31, 2011 | December 31, 2010 | December 31, 2009 | ||||||||||
Net income attributable to MillerCoors | $ | 1,003.8 | $ | 1,057.0 | $ | 842.8 | ||||||
MCBC economic interest | 42 | % | 42 | % | 42 | % | ||||||
MCBC proportionate share of MillerCoors net income | 421.6 | 443.9 | 354.0 | |||||||||
MillerCoors accounting policy elections(1) | — | — | 7.3 | |||||||||
Amortization of the difference between MCBC contributed cost basis and proportional share of the underlying equity in net assets of MillerCoors(2) | 35.4 | 6.9 | 11.7 | |||||||||
Share-based compensation adjustment(3) | 0.9 | 5.3 | 9.0 | |||||||||
Equity income in MillerCoors | $ | 457.9 | $ | 456.1 | $ | 382.0 |
(1) | MillerCoors made its initial accounting policy elections upon formation, impacting certain asset and liability balances contributed by MCBC. Our investment basis in MillerCoors is based on the book value of the net assets we contributed to it. These adjustments reflect the impact on our investment in MillerCoors as a result of the differences resulting from accounting policy elections, the most significant of which was MillerCoors' election to value our contributed inventories using the first in, first out (FIFO) method, rather than the last in, first out (LIFO) method, which had been applied by us prior to the formation of MillerCoors, the impact of which was fully amortized in early 2009. |
(2) | 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 proportional share of underlying equity (42%) of MillerCoors (contributed by both CBC and Miller) by approximately $589 million as of December 31, 2011. This difference, with the exception of goodwill and land, is being amortized as additional equity income over the remaining useful lives of the contributed long-lived amortizing assets. During the third quarter of 2011, MillerCoors recognized an impairment charge of $60.0 million associated with its Sparks brand intangible asset. Our portion, $25.2 million, or 42% of the charge, is offset by an adjustment to our basis amortization above. This adjustment represents accelerated amortization attributable to our proportionate share of the underlying basis of the asset class in which Sparks was contributed. The current basis difference combined with the $35.0 million recorded in 2008 and 2009 related to differences resulting from accounting policy elections must be considered to reconcile MillerCoors equity to our investment in MillerCoors. |
(3) | The net adjustment is to record all share-based compensation associated with pre-existing equity awards to be settled in Class B common stock held by former CBC employees now employed by MillerCoors and to eliminate all share-based compensation impacts related to pre-existing SABMiller plc equity awards held by former Miller employees now employed by MillerCoors. As of the end of the second quarter of 2011, the share-based awards granted to former CBC employees now employed by MillerCoors became fully vested. As such, no further adjustments will be recorded related to these awards. |
Amount | |||
(In millions) | |||
2012 | $ | 135.1 | |
2013 | 139.1 | ||
2014 | 143.3 | ||
2015 | 147.6 | ||
2016 | 152.0 | ||
Thereafter | 277.6 | ||
Total | $ | 994.7 |
For the years ended | ||||||||||||
December 31, 2011 | December 25, 2010 | December 26, 2009 | ||||||||||
Net sales | $ | 840.5 | $ | 810.4 | $ | 996.9 | ||||||
Cost of goods sold(1) | (747.7 | ) | (700.9 | ) | (704.6 | ) | ||||||
Gross profit | $ | 92.8 | $ | 109.5 | $ | 292.3 | ||||||
Operating income | $ | 51.1 | $ | 48.8 | $ | 47.0 | ||||||
Net Income | $ | 42.4 | $ | 40.7 | $ | 22.0 |
(1) | Historical amounts adjusted to reflect current presentation. |
As of | ||||||||
December 31, 2011 | December 25, 2010 | |||||||
Current assets | $ | 311.2 | $ | 410.9 | ||||
Non-current assets | 370.8 | 358.1 | ||||||
Total assets | $ | 682.0 | $ | 769.0 | ||||
Current liabilities | $ | 379.4 | $ | 670.2 | ||||
Non-current liabilities | 271.6 | 99.3 | ||||||
Total liabilities | 651.0 | 769.5 | ||||||
Owners' equity | 31.0 | (0.5 | ) | |||||
Total liabilities and owners' equity | $ | 682.0 | $ | 769.0 |
For the years ended/As of | ||||||||||||||||||||||||||||||||
December 31, 2011 | December 25, 2010 | December 26, 2009 | ||||||||||||||||||||||||||||||
Total Assets(1) | Revenues(2) | Pre-tax income | Total Assets(1) | Revenues(2) | Pre-tax income | Revenues(2) | Pre-tax income | |||||||||||||||||||||||||
(In millions) | ||||||||||||||||||||||||||||||||
BRI | $ | — | $ | — | $ | — | $ | — | $ | — | $ | — | $ | 40.4 | $ | — | ||||||||||||||||
Grolsch | $ | 20.4 | $ | 27.3 | $ | 3.9 | $ | 14.1 | $ | 30.1 | $ | 4.3 | $ | 37.8 | $ | 5.7 | ||||||||||||||||
Cobra U.K. | $ | 31.6 | $ | 40.1 | $ | 6.9 | $ | 32.7 | $ | 39.2 | $ | 6.9 | $ | 21.2 | $ | 1.9 | ||||||||||||||||
Granville Island(3) | $ | — | $ | — | $ | — | $ | — | $ | — | $ | — | $ | 4.6 | $ | 0.2 |
(1) | Excludes receivables from the Company. |
(2) | Substantially all such sales for Grolsch are made to the Company, and as such, are eliminated in consolidation. The BRI revenues for 2009 represent the first two months prior to deconsolidation. Revenues for Cobra U.K. for the fiscal year 2009 reflect 6 months of activity. |
(3) | During the second quarter of 2010, we acquired 100% of the outstanding stock and, as a result, Granville Island is no longer classified as a VIE |
|
For the years ended | ||||||||||||
December 31, 2011 | December 25, 2010 | December 26, 2009 | ||||||||||
(In millions) | ||||||||||||
Gain related to settlement of a portion of our indemnity liabilities to FEMSA (See "Note 20") | $ | — | $ | 42.6 | $ | — | ||||||
Loss related to adjustment in legal reserves due to changes in estimates and foreign exchange gains and losses | (0.4 | ) | (1.5 | ) | — | |||||||
Adjustments to indemnity liabilities due to changes in estimates and foreign exchange gains and losses | 2.7 | (1.5 | ) | (9.0 | ) | |||||||
Income (loss) from discontinued operations, net of tax | $ | 2.3 | $ | 39.6 | $ | (9.0 | ) |
|
For the years ended | |||||||||||
December 31, 2011 | December 25, 2010 | December 26, 2009 | |||||||||
(In millions) | |||||||||||
Gain from Foster's swap and related financial instruments(1) | $ | 0.8 | $ | 47.9 | $ | 0.7 | |||||
Gain (loss) from foreign exchange and derivatives | (6.9 | ) | (3.4 | ) | 5.4 | ||||||
Gain on sale of Montréal Canadiens(2) | — | — | 46.0 | ||||||||
Equity income (loss) of Montréal Canadiens | — | — | (1.2 | ) | |||||||
Environmental reserve | (0.2 | ) | 0.2 | (1.5 | ) | ||||||
Loss on non-operating leases | (0.9 | ) | (1.0 | ) | (3.6 | ) | |||||
Loss related to the change in designation of cross currency swaps(3) | (6.7 | ) | — | — | |||||||
Other, net(4) | 2.9 | 0.2 | 3.6 | ||||||||
Other income (expense), net | $ | (11.0 | ) | $ | 43.9 | $ | 49.4 |
(1) | During the third quarter of 2008, we entered into a cash settled total return swap with Deutsche Bank in order to gain an economic interest exposure to Foster's Group Limited's ("Foster's") stock (ASX:FGL) (see Note 18, "Derivative Instruments and Hedging Activities"). During the third quarter of 2010, we accelerated the maturity dates of our total return swaps related to Foster's stock, and the majority of these swaps were settled prior to year end 2010. Simultaneously, we entered into a series of option contracts to limit our exposure to future changes in Foster's stock price, effectively fixing a range of settlement values for our remaining open swap positions. The remaining total return swaps and related options matured in January of 2011. Proceeds from these settlements are included within Cash flows from investing activities. |
(2) | See Note 4, "Investments" under the "Montreal Canadiens" sub-heading for further discussion. |
(3) | See Note 18, "Derivative Instruments and Hedging Activities" under "Cross Currency Swaps" sub-heading for further discussion. |
(4) | This includes gains of $1.0 million in 2011 and $0.5 million in 2010 related to sales of non-core real estate to related but unconsolidated parties. During 2010, we sold the historic Coors family home in Golden, Colorado, to the Adolph Coors Company LLC for $0.5 million and during 2011, we sold non-core real estate in Golden to MillerCoors for $1.0 million. The selling price in both instances was based on a market appraisal by an independent third party. |
|
For the years ended | ||||||||||||
December 31, 2011 | December 25, 2010 | December 26, 2009 | ||||||||||
(In millions) | ||||||||||||
Domestic | $ | 767.2 | $ | 779.3 | $ | 477.1 | ||||||
Foreign | 7.0 | 29.7 | 240.4 | |||||||||
Total | $ | 774.2 | $ | 809.0 | $ | 717.5 |
For the years ended | ||||||||||||
December 31, 2011 | December 25, 2010 | December 26, 2009 | ||||||||||
(In millions) | ||||||||||||
Current: | ||||||||||||
Federal | $ | 16.0 | $ | 7.5 | $ | (51.3 | ) | |||||
State | 3.9 | 24.6 | 9.6 | |||||||||
Foreign | 24.0 | 38.7 | (100.8 | ) | ||||||||
Total current tax expense (benefit) | $ | 43.9 | $ | 70.8 | $ | (142.5 | ) | |||||
Deferred: | ||||||||||||
Federal | $ | 72.6 | $ | 86.9 | $ | 87.0 | ||||||
State | 3.9 | 5.2 | 14.7 | |||||||||
Foreign | (21.0 | ) | (24.2 | ) | 26.1 | |||||||
Total deferred tax expense (benefit) | $ | 55.5 | $ | 67.9 | $ | 127.8 | ||||||
Total income tax expense (benefit) from continuing operations | $ | 99.4 | $ | 138.7 | $ | (14.7 | ) |
For the years ended | |||||||||
December 31, 2011 | December 25, 2010 | December 26, 2009 | |||||||
Statutory Federal income tax rate | 35.0 | % | 35.0 | % | 35.0 | % | |||
State income taxes, net of federal benefits | 1.6 | % | 2.0 | % | 2.0 | % | |||
Effect of foreign tax rates | (21.4 | )% | (20.2 | )% | (21.7 | )% | |||
Effect of foreign tax law and rate changes | (0.4 | )% | 0.7 | % | (2.7 | )% | |||
Effect of unrecognized tax benefits | (1.1 | )% | 0.8 | % | (18.8 | )% | |||
Other, net | (0.9 | )% | (1.2 | )% | 4.2 | % | |||
Effective tax rate | 12.8 | % | 17.1 | % | (2.0 | )% |
As of | ||||||||
December 31, 2011 | December 25, 2010 | |||||||
(In millions) | ||||||||
Current deferred tax assets: | ||||||||
Compensation related obligations | $ | 3.5 | $ | 0.6 | ||||
Accrued liabilities and other | 47.3 | 46.5 | ||||||
Tax credit carryforward | — | 5.4 | ||||||
Valuation allowance | (6.1 | ) | — | |||||
Other | 2.2 | 0.2 | ||||||
Total current deferred tax assets | 46.9 | 52.7 | ||||||
Current deferred tax liabilities: | ||||||||
Partnership investments | 192.6 | 259.3 | ||||||
Balance sheet reserves and accruals | 4.0 | 13.0 | ||||||
Total current deferred tax liabilities | 196.6 | 272.3 | ||||||
Net current deferred tax assets(1) | — | — | ||||||
Net current deferred tax liabilities(1) | $ | 149.7 | $ | 219.6 |
As of | ||||||||
December 31, 2011 | December 25, 2010 | |||||||
(In millions) | ||||||||
Non-current deferred tax assets: | ||||||||
Compensation related obligations | $ | 12.7 | $ | 20.0 | ||||
Postretirement benefits | 191.5 | 149.9 | ||||||
Foreign exchange losses | 152.0 | 212.1 | ||||||
Convertible debt | 1.0 | 1.3 | ||||||
Tax loss carryforwards | 32.5 | 79.9 | ||||||
Intercompany financing | 13.2 | 14.9 | ||||||
Partnership investments | 13.1 | 23.0 | ||||||
Accrued liabilities and other | 21.8 | 20.5 | ||||||
Valuation allowance | (22.5 | ) | (39.0 | ) | ||||
Total non-current deferred tax assets | 415.3 | 482.6 | ||||||
Non-current deferred tax liabilities: | ||||||||
Fixed assets | 117.8 | 119.8 | ||||||
Partnership investments | 19.8 | 49.7 | ||||||
Intangibles | 579.5 | 589.1 | ||||||
Other | 3.9 | 2.5 | ||||||
Total non-current deferred tax liabilities | 721.0 | 761.1 | ||||||
Net non-current deferred tax asset(1) | $ | — | $ | — | ||||
Net non-current deferred tax liability(1) | $ | 305.7 | $ | 278.5 |
(1) | Our net deferred tax assets and liabilities are presented and composed of the following: |
As of | ||||||||
December 31, 2011 | December 25, 2010 | |||||||
(In millions) | ||||||||
Domestic net current deferred tax liabilities | $ | 161.3 | $ | 152.6 | ||||
Foreign net current deferred tax assets | 11.6 | — | ||||||
Foreign net current deferred tax liabilities | — | 67.0 | ||||||
Net current deferred tax liabilities | $ | 149.7 | $ | 219.6 | ||||
Domestic net non-current deferred tax assets | $ | 149.9 | $ | 188.2 | ||||
Foreign net non-current deferred tax liabilities | 455.6 | 466.7 | ||||||
Net non-current deferred tax liabilities | $ | 305.7 | $ | 278.5 |
For the years ended | ||||||||||||
December 31, 2011 | December 25, 2010 | December 26, 2009 | ||||||||||
(In millions) | ||||||||||||
Balance at beginning of year | $ | 84.9 | $ | 72.3 | $ | 206.1 | ||||||
Additions for tax positions related to the current year | 9.6 | 6.9 | 26.0 | |||||||||
Additions for tax positions of prior years | 4.3 | 6.5 | 1.8 | |||||||||
Reductions for tax positions of prior years | (0.1 | ) | (1.0 | ) | (74.1 | ) | ||||||
Settlements | (1.5 | ) | (0.8 | ) | (11.4 | ) | ||||||
Release due to statute expiration | (25.6 | ) | (1.6 | ) | (92.1 | ) | ||||||
Foreign currency adjustment | (0.9 | ) | 2.6 | 16.0 | ||||||||
Balance at end of year | $ | 70.7 | $ | 84.9 | $ | 72.3 |
|
For the years ended | |||||||||||
December 31, 2011 | December 25, 2010 | December 26, 2009 | |||||||||
(In millions) | |||||||||||
Canada—Restructuring, exit and other related costs associated with the Montréal and Edmonton breweries(1) | $ | 0.6 | $ | 1.0 | $ | 7.6 | |||||
Canada—Special termination benefits(2) | 5.2 | 3.2 | — | ||||||||
Canada—Software abandonment(3) | — | 12.8 | — | ||||||||
Canada—Pension curtailment(4) | — | — | 5.3 | ||||||||
Canada—Flood related costs, net(5) | 0.2 | — | — | ||||||||
Canada—BRI Loan Guarantee Adjustment(6) | (2.0 | ) | — | — | |||||||
Canada—Fixed asset adjustment(7) | 7.6 | — | — | ||||||||
U.K.—Release of non-income-related tax reserve(8) | (2.3 | ) | 0.4 | 10.4 | |||||||
U.K.—Restructuring charges and related exit costs(9) | 2.1 | 2.6 | 2.8 | ||||||||
U.K.—Other, net | (0.1 | ) | 0.1 | — | |||||||
U.K.—Costs associated with Cobra acquisition | — | — | 5.7 | ||||||||
MCI —Costs associated with other strategic initiatives | 1.0 | 1.1 | — | ||||||||
Corporate —Costs associated with other strategic initiatives | — | 0.1 | 0.9 | ||||||||
Total special items | $ | 12.3 | $ | 21.3 | $ | 32.7 |
(1) | During 2011, 2010, and 2009, we recognized expenses for restructuring costs associated with the employee terminations and impairment of assets at the Montréal and Edmonton breweries. |
(2) | During 2011, we recognized charges related to special termination benefits offered to eligible employees upon election for early retirement as collective bargaining agreements were ratified with MCC impacting the Quebec Hourly Defined Benefit pension plan. Additionally, during the first quarter of 2011 and the first half of 2010, we recognized expenses for special termination benefits related to the Ontario-Atlantic Hourly Defined Benefit pension plan. |
(3) | During 2010, a capital asset write-off and associated costs were recorded related to the abandonment of sales support software, which had been under development, as a result of a change in strategic direction relative to the use of the software. |
(4) | During 2009, we recognized a pension curtailment loss and restructuring costs associated with employee terminations at the Montréal brewery, driven by MillerCoors' decision to produce Blue Moon products at its breweries in the U.S. |
(5) | During 2011, we incurred expenses related to flood damages at our Toronto offices, which was partially offset by insurance proceeds. |
(6) | During the second quarter of 2011, we recognized a $2.0 million gain resulting from a reduction of our guarantee of BRI debt obligations, which is discussed further in Note 20 "Commitments and Contingencies". |
(7) | During the second quarter of 2011, we recognized a $7.6 million loss related to the correction of an immaterial error in prior periods to reduce Properties in the Canada segment, resulting from the performance of a fixed asset count. The impact of the error and the related correction this year is not material to any prior annual or interim financial statements and is not material to the fiscal year results for 2011. |
(8) | During 2009, we established a non-income-related tax reserve of $10.4 million that was recorded as a special item. Our current estimates indicate a range of possible loss relative to this reserve of $0 million to $22.3 million, inclusive of potential penalties and interest. The amount recorded in 2011 represents a release of a portion of this reserve as a result of a change in estimate. |
(9) | During 2011, 2010 and 2009, we recognized employee termination costs primarily related to supply chain restructuring activity resulting from on-going company-wide efforts to increase efficiency throughout the segment. |
|
Common stock issued | Exchangeable shares issued | |||||||||||
Class A | Class B(1) | Class A | Class B | |||||||||
(Share amounts in millions) | ||||||||||||
Balance at December 28, 2008 | 2.7 | 157.1 | 3.2 | 20.9 | ||||||||
Shares issued under equity compensation plans | — | 1.5 | — | — | ||||||||
Shares exchanged for common stock | (0.1 | ) | 0.8 | — | (0.7 | ) | ||||||
Balance at December 26, 2009 | 2.6 | 159.4 | 3.2 | 20.2 | ||||||||
Shares issued under equity compensation plans | — | 1.4 | — | — | ||||||||
Shares exchanged for common stock | — | 1.2 | (0.2 | ) | (1.0 | ) | ||||||
Balance at December 25, 2010 | 2.6 | 162.0 | 3.0 | 19.2 | ||||||||
Shares issued under equity compensation plans | — | 0.7 | — | — | ||||||||
Shares exchanged for common stock | — | — | — | — | ||||||||
Shares exchanged for Class B exchangeable shares | — | — | (0.1 | ) | 0.1 | |||||||
Balance at December 31, 2011 | 2.6 | 162.7 | 2.9 | 19.3 |
(1) | During 2011, we repurchased Class B common shares which results in a lower number of outstanding shares compared to issued shares. See "Share Repurchase Program" below for further discussion. For all other classes, issued shares equal outstanding shares. |
|
As of | ||||||||
December 31, 2011 | December 25, 2010 | |||||||
(In millions) | ||||||||
Land and improvements | $ | 105.4 | $ | 102.0 | ||||
Buildings and improvements | 351.9 | 341.8 | ||||||
Machinery and equipment | 1,259.6 | 1,243.9 | ||||||
Returnable containers | 203.2 | 202.2 | ||||||
Furniture and fixtures | 277.4 | 309.2 | ||||||
Software | 112.0 | 47.9 | ||||||
Natural resource properties | 3.0 | 3.0 | ||||||
Construction in progress | 137.7 | 65.2 | ||||||
Total properties cost | 2,450.2 | 2,315.2 | ||||||
Less: accumulated depreciation | (1,020.1 | ) | (926.5 | ) | ||||
Net properties | $ | 1,430.1 | $ | 1,388.7 |
Useful Economic Lives as of December 31, 2011 | |
Buildings and improvements | 20 - 40 years |
Machinery and equipment | 3 - 25 years |
Furniture and fixtures | 3 - 10 years |
Returnable containers | 2 - 15 years |
Software | 3 - 5 years |
|
As of | ||||||||
December 31, 2011 | December 25, 2010 | |||||||
(In millions) | ||||||||
Balance at beginning of year | $ | 1,489.1 | $ | 1,475.0 | ||||
Foreign currency translation | (6.1 | ) | 5.2 | |||||
Business acquisitions | 19.7 | 8.6 | ||||||
Historical corrections (1) | (49.4 | ) | 0.3 | |||||
Balance at end of year | $ | 1,453.3 | $ | 1,489.1 |
As of | ||||||||
December 31, 2011 | December 25, 2010 | |||||||
(In millions) | ||||||||
Canada | $ | 689.5 | $ | 748.6 | ||||
United Kingdom | 746.1 | 731.4 | ||||||
MCI | 17.7 | 9.1 | ||||||
Consolidated | $ | 1,453.3 | $ | 1,489.1 |
Useful life | Gross | Accumulated amortization | Net | |||||||||||
(Years) | (In millions) | |||||||||||||
Intangible assets subject to amortization: | ||||||||||||||
Brands | 3 - 40 | $ | 316.9 | $ | (179.0 | ) | $ | 137.9 | ||||||
Distribution rights | 2 - 23 | 342.0 | (234.0 | ) | 108.0 | |||||||||
Patents and technology and distribution channels | 3 - 10 | 34.9 | (28.9 | ) | 6.0 | |||||||||
Land use rights and other | 2 - 42 | 6.5 | (0.8 | ) | 5.7 | |||||||||
Intangible assets not subject to amortization: | ||||||||||||||
Brands | Indefinite | 3,322.4 | — | 3,322.4 | ||||||||||
Distribution networks | Indefinite | 990.5 | — | 990.5 | ||||||||||
Other | Indefinite | 15.5 | — | 15.5 | ||||||||||
Total | $ | 5,028.7 | $ | (442.7 | ) | $ | 4,586.0 |
Useful life | Gross | Accumulated amortization | Net | |||||||||||
(Years) | (In millions) | |||||||||||||
Intangible assets subject to amortization: | ||||||||||||||
Brands | 3 - 40 | $ | 297.3 | $ | (159.6 | ) | $ | 137.7 | ||||||
Distribution rights | 2 - 23 | 345.8 | (221.6 | ) | 124.2 | |||||||||
Patents and technology and distribution channels | 3 - 10 | 34.6 | (25.5 | ) | 9.1 | |||||||||
Land use rights and other | 2 - 42 | 6.2 | (0.1 | ) | 6.1 | |||||||||
Intangible assets not subject to amortization: | ||||||||||||||
Brands | Indefinite | 3,359.2 | — | 3,359.2 | ||||||||||
Distribution networks | Indefinite | 1,003.3 | — | 1,003.3 | ||||||||||
Other | Indefinite | 15.5 | — | 15.5 | ||||||||||
Total | $ | 5,061.9 | $ | (406.8 | ) | $ | 4,655.1 |
Fiscal Year | Amount | ||
(In millions) | |||
2012 | $ | 34.6 | |
2013 | $ | 33.7 | |
2014 | $ | 33.7 | |
2015 | $ | 31.1 | |
2016 | $ | 34.1 |
|
As of | ||||||||
December 31, 2011 | December 25, 2010 | |||||||
(In millions) | ||||||||
Senior notes: | ||||||||
$850 million 6.375% notes due 2012(1) | $ | 44.6 | $ | 44.6 | ||||
CAD 900 million 5.0% notes due 2015(2) | 881.2 | 892.6 | ||||||
$575 million 2.5% convertible notes due 2013(3) | 575.0 | 575.0 | ||||||
CAD 500 million 3.95% Series A notes due 2017(4) | 489.6 | 495.9 | ||||||
Credit facility(5) | — | — | ||||||
Less: unamortized debt discounts and other | (30.8 | ) | (48.5 | ) | ||||
Total long-term debt (including current portion) | 1,959.6 | 1,959.6 | ||||||
Less: current portion of long-term debt | (44.7 | ) | — | |||||
Total long-term debt | $ | 1,914.9 | $ | 1,959.6 | ||||
Total fair value | $ | 2,133.6 | $ | 2,137.6 |
(1) | On May 7, 2002, CBC completed a private placement of $850 million of 6.375% senior notes, due 2012, with interest payable semi-annually. Net proceeds from the sale of the notes, after deducting estimated expenses and underwriting fees, were approximately $841 million. The notes were subsequently exchanged for publicly registered notes with the same terms. On July 11, 2007, we repurchased $625 million aggregate principal amount of those notes. On February 7, 2008, we announced a tender for repurchase of any and all of the remaining principal amount of $225 million, with the tender period running through February 14, 2008. The net costs of $12.4 million related to this extinguishment of debt and termination of related interest rate swaps was recorded in the first quarter of 2008. The amount actually repurchased was $180.4 million with $44.7 million outstanding as of December 31, 2011, which, in addition to the remaining principal amount of $44.6 million, also includes $0.1 million related to interest rate swaps transacted around this debt issuance in 2002, but were cash settled in 2008 in conjunction with the tender offer. This remaining balance relates to the outstanding principal amount and is being amortized over the remaining term of this debt. |
(2) | On September 22, 2005, Molson Coors Capital Finance ULC, a Nova Scotia entity, and Molson Coors International, LP, a Delaware partnership, both wholly owned subsidiaries of MCBC, issued 10-year and 5-year private placement debt securities totaling CAD 900 million in Canada and $300 million in the United States, bearing interest at 5.0% and at 4.85%, respectively paid semi-annually. The U.S. $300 million issue matured and was repaid on September 22, 2010. The remaining CAD 900 million offering is guaranteed by MCBC, and certain of our U.S. and Canadian subsidiaries. The securities have certain restrictions on secured borrowing, sale-leaseback transactions and the sale of assets, all of which we were in compliance at December 31, 2011, and December 25, 2010. The CAD 900 million issue was subsequently exchanged for Canadian publicly registered notes maturing on September 22, 2015. |
(3) | On June 15, 2007, MCBC issued in a public offering $575 million of 2.5% Convertible Senior Notes (the "Notes") payable semi-annually in arrears. The Notes are senior unsecured obligations and rank equal in rights of payment with all of our other senior unsecured debt and senior to all of our future subordinated debt. The Notes are guaranteed by MCBC and certain of our U.S. and Canadian subsidiaries. The Notes mature on July 30, 2013, unless earlier converted or terminated, subject to certain conditions, as noted below. The Notes contain certain customary anti-dilution and make-whole provisions to protect holders of the Notes as defined in the Indenture. |
• | during any calendar quarter, if the closing sales price of our Class B common stock for at least 20 trading days in the period of 30 consecutive trading days ending on the last trading day of the calendar quarter preceding the quarter in which the conversion occurs is more than 130% of the conversion price of the Notes in effect on that last trading day; |
• | during the ten consecutive trading day period following any five consecutive trading day period in which the trading price for the Notes for each such trading day was less than 95% of the closing sale price of our Class B common stock on such date multiplied by the then current conversion rate; or |
• | if we make certain significant distributions to holders of our Class B common stock, we enter into specified corporate transactions or our Class B common stock ceases to be approved for listing on the New York Stock Exchange and is not listed for trading purposes on a U.S. national securities exchange. |
(4) | During the fourth quarter of 2010, our wholly owned subsidiary, Molson Coors International LP, completed a 7-year CAD 500 million 3.95% fixed rate Series A Notes private placement in Canada. These notes resulted in net proceeds of CAD 496.6 million after underwriting fees and being issued at a discount of CAD 1.6 million. The Series A Notes will mature on October 6, 2017. The notes are guaranteed by MCBC and certain U.S. and Canadian subsidiaries of the Company and rank equally with the Company's other outstanding notes and credit facility. |
(5) | During the second quarter of 2011, we terminated our $750 million revolving multicurrency bank credit facility, which was scheduled to expire in August 2011. Additionally, in connection with this termination, we entered into an agreement for a 4-year revolving multicurrency credit facility of $400 million, which provides a $100 million sub-facility available for the issuance of letters of credit. We incurred $2.2 million of issuance costs and up-front fees related to this agreement, which are being amortized over the term of the facility. There were no outstanding borrowings on the $400 million credit facility as of December 31, 2011. |
Amount | |||
(In millions) | |||
2012 | $ | 46.9 | |
2013 | 575.0 | ||
2014 | — | ||
2015 | 881.2 | ||
2016 | — | ||
Thereafter | 489.6 | ||
Total | $ | 1,992.7 |
For the years ended | ||||||||||||
December 31, 2011 | December 25, 2010 | December 26, 2009 | ||||||||||
(In millions) | ||||||||||||
Interest incurred(1) | $ | 121.0 | $ | 111.4 | $ | 99.3 | ||||||
Interest capitalized | (2.3 | ) | (1.2 | ) | (2.7 | ) | ||||||
Interest expensed | $ | 118.7 | $ | 110.2 | $ | 96.6 |
(1) | Interest incurred includes non-cash interest of $17.5 million, $16.9 million and $16.4 million for the fiscal years 2011, 2010 and 2009, respectively. |
|
MCBC shareholders | |||||||||||||||||||||||
Foreign currency translation adjustments | Gain (loss) on derivative instruments | Pension and Postretirement Benefits adjustments | Equity Method Investments | Accumulated other comprehensive income (loss) | Noncontrolling interest | ||||||||||||||||||
(In millions) | |||||||||||||||||||||||
As of December 28, 2008 | $ | 170.1 | $ | 35.3 | $ | (365.6 | ) | $ | (211.2 | ) | $ | (371.4 | ) | $ | (25.4 | ) | |||||||
Foreign currency translation adjustments | 468.3 | — | — | — | 468.3 | — | |||||||||||||||||
Unrealized gain (loss) on derivative instruments | — | (42.3 | ) | — | — | (42.3 | ) | — | |||||||||||||||
Reclassification adjustment on derivative instruments | — | (15.7 | ) | — | — | (15.7 | ) | — | |||||||||||||||
Pension and other postretirement benefit adjustments | — | — | (360.3 | ) | — | (360.3 | ) | — | |||||||||||||||
Contribution to MillerCoors | — | — | — | 143.8 | 143.8 | — | |||||||||||||||||
Ownership share of MillerCoors, other comprehensive income (loss) | — | — | — | (32.2 | ) | (32.2 | ) | — | |||||||||||||||
Pension and other postretirement benefit adjustments related to BRI deconsolidation | — | — | 33.3 | — | 33.3 | 36.5 | |||||||||||||||||
Tax benefit (expense) | 146.4 | 18.7 | 87.0 | (54.9 | ) | 197.2 | (11.1 | ) | |||||||||||||||
As of December 26, 2009 | $ | 784.8 | $ | (4.0 | ) | $ | (605.6 | ) | $ | (154.5 | ) | $ | 20.7 | $ | — | ||||||||
Foreign currency translation adjustments | 53.8 | — | — | — | 53.8 | — | |||||||||||||||||
Unrealized gain (loss) on derivative instruments | — | (18.6 | ) | — | — | (18.6 | ) | — | |||||||||||||||
Reclassification adjustment on derivative instruments | — | 7.1 | — | — | 7.1 | — | |||||||||||||||||
Pension and other postretirement benefit adjustments | — | — | 147.5 | — | 147.5 | — | |||||||||||||||||
Ownership share of MillerCoors, other comprehensive loss | — | — | — | (52.8 | ) | (52.8 | ) | — | |||||||||||||||
Ownership share of other unconsolidated subsidiaries' other comprehensive income (loss) | — | — | — | (39.2 | ) | (39.2 | ) | — | |||||||||||||||
Tax benefit (expense) | 67.7 | 3.9 | (39.3 | ) | 20.3 | 52.6 | — | ||||||||||||||||
As of December 25, 2010 | $ | 906.3 | $ | (11.6 | ) | $ | (497.4 | ) | $ | (226.2 | ) | $ | 171.1 | $ | — | ||||||||
Foreign currency translation adjustments | (49.6 | ) | — | — | — | (49.6 | ) | — | |||||||||||||||
Unrealized gain (loss) on derivative instruments | — | (2.0 | ) | — | — | (2.0 | ) | — | |||||||||||||||
Reclassification adjustment on derivative instruments | — | 14.9 | — | — | 14.9 | — | |||||||||||||||||
Pension and other postretirement benefit adjustments | — | — | (242.0 | ) | — | (242.0 | ) | — | |||||||||||||||
Ownership share of MillerCoors, other comprehensive loss | — | — | — | (103.4 | ) | (103.4 | ) | — | |||||||||||||||
Ownership share of other unconsolidated subsidiaries' other comprehensive income (loss) | — | — | — | (2.8 | ) | (2.8 | ) | — | |||||||||||||||
Tax benefit (expense) | (18.1 | ) | 0.4 | 62.6 | 39.2 | 84.1 | — | ||||||||||||||||
As of December 31, 2011 | $ | 838.6 | $ | 1.7 | $ | (676.8 | ) | $ | (293.2 | ) | $ | (129.7 | ) | $ | — |
|
For the year ended December 31, 2011 | |||||||||||||||||||
Canada plans | U.S. plan | U.K. plan | MCI plan | Consolidated | |||||||||||||||
(In millions) | |||||||||||||||||||
Components of net periodic pension cost (benefit): | |||||||||||||||||||
Service cost—benefits earned during the year | $ | 18.8 | $ | — | $ | — | — | $ | 18.8 | ||||||||||
Interest cost on projected benefit obligation | 72.4 | — | 108.1 | — | 180.5 | ||||||||||||||
Expected return on plan assets | (73.9 | ) | — | (125.5 | ) | — | (199.4 | ) | |||||||||||
Amortization of prior service cost | 0.8 | — | — | — | 0.8 | ||||||||||||||
Amortization of net actuarial loss | 9.4 | — | 10.8 | — | 20.2 | ||||||||||||||
Less expected participant contributions | (1.6 | ) | — | — | — | (1.6 | ) | ||||||||||||
Net periodic pension cost (benefit) | $ | 25.9 | $ | — | $ | (6.6 | ) | $ | — | $ | 19.3 |
For the year ended December 25, 2010 | |||||||||||||||||||
Canada plans | U.S. plan | U.K. plan | MCI plan | Consolidated | |||||||||||||||
(In millions) | |||||||||||||||||||
Components of net periodic pension cost (benefit): | |||||||||||||||||||
Service cost—benefits earned during the year | $ | 17.4 | $ | — | $ | — | $ | — | $ | 17.4 | |||||||||
Interest cost on projected benefit obligation | 71.8 | 0.4 | 116.1 | — | 188.3 | ||||||||||||||
Expected return on plan assets | (70.1 | ) | — | (109.8 | ) | — | (179.9 | ) | |||||||||||
Amortization of prior service cost | 0.8 | (0.1 | ) | — | — | 0.7 | |||||||||||||
Amortization of net actuarial loss | 1.3 | — | 12.3 | — | 13.6 | ||||||||||||||
Curtailment loss | 1.8 | — | — | — | 1.8 | ||||||||||||||
Less expected participant and National Insurance contributions | (2.0 | ) | — | — | — | (2.0 | ) | ||||||||||||
Net periodic pension cost (benefit) | $ | 21.0 | $ | 0.3 | $ | 18.6 | $ | — | $ | 39.9 |
For the year ended December 26, 2009 | |||||||||||||||||||
Canada plans | U.S. plan | U.K. plan | MCI plan | Consolidated | |||||||||||||||
(In millions) | |||||||||||||||||||
Components of net periodic pension cost (benefit): | |||||||||||||||||||
Service cost—benefits earned during the year | $ | 15.0 | $ | — | $ | 4.6 | — | $ | 19.6 | ||||||||||
Interest cost on projected benefit obligation | 69.5 | 0.4 | 107.6 | — | 177.5 | ||||||||||||||
Expected return on plan assets | (68.3 | ) | — | (122.3 | ) | — | (190.6 | ) | |||||||||||
Amortization of prior service cost | 0.7 | — | — | — | 0.7 | ||||||||||||||
Amortization of net actuarial loss | 0.1 | 0.4 | — | — | 0.5 | ||||||||||||||
Special termination benefits | 5.3 | — | — | — | 5.3 | ||||||||||||||
Less expected participant and National Insurance contributions | (1.9 | ) | — | (0.5 | ) | — | (2.4 | ) | |||||||||||
Net periodic pension cost | $ | 20.4 | $ | 0.8 | $ | (10.6 | ) | $ | — | $ | 10.6 |
For the year ended December 31, 2011 | |||||||||||
Canada plans | U.S. plan | Consolidated | |||||||||
(In millions) | |||||||||||
Components of net periodic postretirement benefit cost: | |||||||||||
Service cost—benefits earned during the period | $ | 2.2 | $ | 0.2 | $ | 2.4 | |||||
Interest cost on projected benefit obligation | 7.6 | 0.1 | 7.7 | ||||||||
Amortization of prior service gain | (3.8 | ) | — | (3.8 | ) | ||||||
Amortization of net actuarial gain | (3.5 | ) | 0.1 | (3.4 | ) | ||||||
Net periodic postretirement benefit cost | $ | 2.5 | $ | 0.4 | $ | 2.9 |
For the year ended December 25, 2010 | |||||||||||
Canada plans | U.S. plan | Consolidated | |||||||||
(In millions) | |||||||||||
Components of net periodic postretirement benefit cost: | |||||||||||
Service cost—benefits earned during the period | $ | 2.4 | $ | 0.1 | $ | 2.5 | |||||
Interest cost on projected benefit obligation | 9.3 | 0.1 | 9.4 | ||||||||
Amortization of prior service gain | (3.6 | ) | — | (3.6 | ) | ||||||
Amortization of net actuarial gain | (0.1 | ) | — | (0.1 | ) | ||||||
Net periodic postretirement benefit cost | $ | 8.0 | $ | 0.2 | $ | 8.2 |
For the year ended December 26, 2009 | |||||||||||
Canada plans | U.S. plan | Consolidated | |||||||||
(In millions) | |||||||||||
Components of net periodic postretirement benefit cost: | |||||||||||
Service cost—benefits earned during the period | $ | 2.9 | $ | 0.1 | $ | 3.0 | |||||
Interest cost on projected benefit obligation | 9.3 | 0.1 | 9.4 | ||||||||
Amortization of prior service cost | (2.5 | ) | — | (2.5 | ) | ||||||
Amortization of net actuarial loss | (0.9 | ) | — | (0.9 | ) | ||||||
Net periodic postretirement benefit cost | $ | 8.8 | $ | 0.2 | $ | 9.0 |
As of December 25, 2010 | |||||||||||||||||||||||
Underfunded | Overfunded | ||||||||||||||||||||||
Canada plans | U.S. plan | U.K. plan | Total | Canada plans | Consolidated | ||||||||||||||||||
(In millions) | |||||||||||||||||||||||
Change in projected benefit obligation: | |||||||||||||||||||||||
Prior year projected benefit obligation | $ | 904.5 | $ | 7.4 | $ | 2,153.4 | $ | 3,065.3 | $ | 343.5 | $ | 3,408.8 | |||||||||||
Changes in current year (Underfunded)/Overfunded position | (209.7 | ) | — | — | (209.7 | ) | 209.7 | — | |||||||||||||||
Service cost, net of expected employee contributions | 9.8 | — | — | 9.8 | 5.8 | 15.6 | |||||||||||||||||
Interest cost | 40.7 | 0.4 | 116.1 | 157.2 | 31.0 | 188.2 | |||||||||||||||||
Actual employee contributions | 1.9 | — | — | 1.9 | — | 1.9 | |||||||||||||||||
Special termination benefits | — | — | — | — | 1.8 | 1.8 | |||||||||||||||||
Actuarial loss (gain) | 42.8 | — | (94.2 | ) | (51.4 | ) | 11.6 | (39.8 | ) | ||||||||||||||
Benefits paid | (42.5 | ) | — | (104.1 | ) | (146.6 | ) | (41.5 | ) | (188.1 | ) | ||||||||||||
Foreign currency exchange rate change | 29.9 | — | (70.3 | ) | (40.4 | ) | 23.0 | (17.4 | ) | ||||||||||||||
Projected benefit obligation at end of year | $ | 777.4 | $ | 7.8 | $ | 2,000.9 | $ | 2,786.1 | $ | 584.9 | $ | 3,371.0 | |||||||||||
Actuarial present value of accumulated benefit obligation | $ | 776.7 | $ | 7.8 | $ | 2,000.9 | $ | 2,785.4 | $ | 583.1 | $ | 3,368.5 | |||||||||||
Change in plan assets: | |||||||||||||||||||||||
Prior year fair value of assets | $ | 748.6 | $ | — | $ | 1,645.6 | $ | 2,394.2 | $ | 388.5 | $ | 2,782.7 | |||||||||||
Changes in current year (Underfunded)/Overfunded position | (205.3 | ) | — | — | (205.3 | ) | 205.3 | — | |||||||||||||||
Actual return on plan assets | 56.9 | — | 140.2 | 197.1 | 53.8 | 250.9 | |||||||||||||||||
Employer contributions | 60.1 | — | 198.9 | 259.0 | 25.4 | 284.4 | |||||||||||||||||
Actual employee contributions | 1.9 | — | — | 1.9 | — | 1.9 | |||||||||||||||||
Benefits and plan expenses paid | (42.5 | ) | — | (107.2 | ) | (149.7 | ) | (41.5 | ) | (191.2 | ) | ||||||||||||
Foreign currency exchange rate change | 23.2 | — | (56.4 | ) | (33.2 | ) | 25.3 | (7.9 | ) | ||||||||||||||
Fair value of plan assets at end of year | $ | 642.9 | $ | — | $ | 1,821.1 | $ | 2,464.0 | $ | 656.8 | $ | 3,120.8 | |||||||||||
Funded status: | |||||||||||||||||||||||
Projected benefit obligation at end of year | $ | (777.4 | ) | $ | (7.8 | ) | $ | (2,000.9 | ) | $ | (2,786.1 | ) | $ | (584.9 | ) | $ | (3,371.0 | ) | |||||
Fair value of plan assets at end of year | 642.9 | — | 1,821.1 | 2,464.0 | 656.8 | 3,120.8 | |||||||||||||||||
Funded status—(Underfunded)/Overfunded | (134.5 | ) | (7.8 | ) | (179.8 | ) | (322.1 | ) | 71.9 | (250.2 | ) | ||||||||||||
Less: noncontrolling interests | — | — | — | — | — | — | |||||||||||||||||
Funded status after noncontrolling interests—(Underfunded)/Overfunded | $ | (134.5 | ) | $ | (7.8 | ) | $ | (179.8 | ) | $ | (322.1 | ) | $ | 71.9 | $ | (250.2 | ) | ||||||
Amounts recognized in the Consolidated Balance Sheet: | |||||||||||||||||||||||
Other assets | $ | — | $ | — | $ | — | $ | — | $ | 71.9 | $ | 71.9 | |||||||||||
Accrued expenses and other liabilities | (1.6 | ) | — | — | (1.6 | ) | — | (1.6 | ) | ||||||||||||||
Pension and postretirement benefits | (132.9 | ) | (7.8 | ) | (179.8 | ) | (320.5 | ) | — | (320.5 | ) | ||||||||||||
Net amounts recognized | $ | (134.5 | ) | $ | (7.8 | ) | $ | (179.8 | ) | $ | (322.1 | ) | $ | 71.9 | $ | (250.2 | ) | ||||||
Amounts in Accumulated Other Comprehensive Loss (Income) not yet recognized as components of net periodic pension cost or (benefit), pre-tax: | |||||||||||||||||||||||
Net actuarial loss (gain) | $ | 149.2 | $ | 0.4 | $ | 608.8 | $ | 758.4 | $ | 23.9 | $ | 782.3 | |||||||||||
Net prior service cost | 0.7 | (0.2 | ) | — | 0.5 | 3.5 | 4.0 | ||||||||||||||||
Total not yet recognized | $ | 149.9 | $ | 0.2 | $ | 608.8 | $ | 758.9 | $ | 27.4 | $ | 786.3 |
As of December 31, 2011 | |||||||||||||||||||||||||||
Underfunded | Overfunded | ||||||||||||||||||||||||||
Canada plans | U.S. plan | U.K. plan | MCI plan | Total | Canada plans | Consolidated | |||||||||||||||||||||
(In millions) | |||||||||||||||||||||||||||
Change in projected benefit obligation: | |||||||||||||||||||||||||||
Prior year projected benefit obligation | $ | 777.4 | $ | 7.8 | $ | 2,000.9 | — | $ | 2,786.1 | $ | 584.9 | $ | 3,371.0 | ||||||||||||||
Changes in current year (Underfunded)/Overfunded position | 235.6 | — | — | — | 235.6 | (235.6 | ) | — | |||||||||||||||||||
Service cost, net of expected employee contributions | 14.7 | — | — | — | 14.7 | 2.6 | 17.3 | ||||||||||||||||||||
Interest cost | 54.8 | — | 108.1 | — | 162.9 | 17.6 | 180.5 | ||||||||||||||||||||
Actual employee contributions | 1.5 | — | — | — | 1.5 | — | 1.5 | ||||||||||||||||||||
Actuarial loss (gain) | 98.8 | — | 118.6 | 1.5 | 218.9 | 24.4 | 243.3 | ||||||||||||||||||||
Benefits paid | (62.3 | ) | — | (99.1 | ) | — | (161.4 | ) | (30.4 | ) | (191.8 | ) | |||||||||||||||
Adjustment due to change in historical accounting | — | (7.8 | ) | — | 2.0 | (5.8 | ) | — | (5.8 | ) | |||||||||||||||||
Foreign currency exchange rate change | (16.4 | ) | — | 8.9 | 0.3 | (7.2 | ) | (4.9 | ) | (12.1 | ) | ||||||||||||||||
Projected benefit obligation at end of year | $ | 1,104.1 | $ | — | $ | 2,137.4 | $ | 3.8 | $ | 3,245.3 | $ | 358.6 | $ | 3,603.9 | |||||||||||||
Actuarial present value of accumulated benefit obligation | $ | 1,103.0 | $ | — | $ | 2,137.5 | $ | 3.1 | $ | 3,243.6 | $ | 357.7 | $ | 3,601.3 | |||||||||||||
Change in plan assets: | |||||||||||||||||||||||||||
Prior year fair value of assets | $ | 642.9 | $ | — | $ | 1,821.1 | — | $ | 2,464.0 | $ | 656.8 | $ | 3,120.8 | ||||||||||||||
Changes in current year (Underfunded)/Overfunded position | 242.0 | — | — | — | 242.0 | (242.0 | ) | — | |||||||||||||||||||
Actual return on plan assets | 45.0 | — | 111.9 | — | 156.9 | 50.2 | 207.1 | ||||||||||||||||||||
Employer contributions | 9.0 | — | — | — | 9.0 | 4.3 | 13.3 | ||||||||||||||||||||
Actual employee contributions | 1.5 | — | — | — | 1.5 | — | 1.5 | ||||||||||||||||||||
Benefits and plan expenses paid | (62.3 | ) | — | (105.5 | ) | — | (167.8 | ) | (30.4 | ) | (198.2 | ) | |||||||||||||||
Foreign currency exchange rate change | (11.0 | ) | — | 11.5 | — | 0.5 | (6.1 | ) | (5.6 | ) | |||||||||||||||||
Fair value of plan assets at end of year | $ | 867.1 | $ | — | $ | 1,839.0 | — | $ | 2,706.1 | $ | 432.8 | $ | 3,138.9 | ||||||||||||||
Funded status: | |||||||||||||||||||||||||||
Projected benefit obligation at end of year | $ | (1,104.1 | ) | $ | — | $ | (2,137.4 | ) | $ | (3.8 | ) | $ | (3,245.3 | ) | $ | (358.6 | ) | $ | (3,603.9 | ) | |||||||
Fair value of plan assets at end of year | 867.1 | — | 1,839.0 | — | 2,706.1 | 432.8 | 3,138.9 | ||||||||||||||||||||
Funded status—(Underfunded)/Overfunded | (237.0 | ) | — | (298.4 | ) | (3.8 | ) | (539.2 | ) | 74.2 | (465.0 | ) | |||||||||||||||
Less: noncontrolling interests | — | — | — | — | — | — | — | ||||||||||||||||||||
Funded status after noncontrolling interests—(Underfunded)/Overfunded | $ | (237.0 | ) | $ | — | $ | (298.4 | ) | $ | (3.8 | ) | $ | (539.2 | ) | $ | 74.2 | $ | (465.0 | ) | ||||||||
Amounts recognized in the Consolidated Balance Sheet: | |||||||||||||||||||||||||||
Other assets | $ | — | $ | — | $ | — | $ | — | $ | — | $ | 74.2 | $ | 74.2 | |||||||||||||
Accrued expenses and other liabilities | (1.9 | ) | — | — | (0.5 | ) | (2.4 | ) | — | (2.4 | ) | ||||||||||||||||
Pension and postretirement benefits | (235.1 | ) | — | (298.4 | ) | (3.3 | ) | (536.8 | ) | — | (536.8 | ) | |||||||||||||||
Net amounts recognized | $ | (237.0 | ) | $ | — | $ | (298.4 | ) | (3.8 | ) | $ | (539.2 | ) | $ | 74.2 | $ | (465.0 | ) | |||||||||
Amounts in Accumulated Other Comprehensive Loss (Income) not yet recognized as components of net periodic pension cost or (benefit), pre-tax: | |||||||||||||||||||||||||||
Net actuarial loss (gain) | $ | 295.9 | $ | — | $ | 731.2 | $ | 1.6 | $ | 1,028.7 | $ | (29.4 | ) | $ | 999.3 | ||||||||||||
Net prior service cost | 3.7 | — | — | — | 3.7 | — | 3.7 | ||||||||||||||||||||
Total not yet recognized | $ | 299.6 | $ | — | $ | 731.2 | $ | 1.6 | $ | 1,032.4 | $ | (29.4 | ) | $ | 1,003.0 |
Canada plans | U.S. plan | U.K. plan | MCI plan | Total | |||||||||||||||
(In millions) | |||||||||||||||||||
Accumulated other comprehensive loss as of December 26, 2009 | $ | 175.4 | $ | 0.2 | $ | 740.9 | $ | — | $ | 916.5 | |||||||||
Amortization of prior service costs | (0.8 | ) | — | — | — | (0.8 | ) | ||||||||||||
Amortization of net actuarial loss | (1.3 | ) | — | (12.3 | ) | — | (13.6 | ) | |||||||||||
Current year actuarial loss | 6.0 | — | (118.6 | ) | — | (112.6 | ) | ||||||||||||
Foreign currency exchange rate change | (2.0 | ) | — | (1.2 | ) | — | (3.2 | ) | |||||||||||
Accumulated other comprehensive loss as of December 25, 2010 | $ | 177.3 | $ | 0.2 | $ | 608.8 | $ | — | $ | 786.3 | |||||||||
Amortization of prior service costs | (0.8 | ) | — | — | — | (0.8 | ) | ||||||||||||
Amortization of net actuarial loss | (9.4 | ) | — | (10.8 | ) | — | (20.2 | ) | |||||||||||
Current year actuarial loss (gain) | 103.3 | — | 128.5 | 1.5 | 233.3 | ||||||||||||||
Adjustment due to change in historical accounting | — | (0.2 | ) | — | — | (0.2 | ) | ||||||||||||
Foreign currency exchange rate change | (0.2 | ) | — | 4.7 | 0.1 | 4.6 | |||||||||||||
Accumulated other comprehensive loss as of December 31, 2011 | $ | 270.2 | $ | — | $ | 731.2 | $ | 1.6 | $ | 1,003.0 |
Amount | |||
(In millions) | |||
Amortization of net prior service cost | $ | 0.8 | |
Amortization of actuarial net loss | $ | 38.5 |
For the years ended | |||||||||||||||||||||
December 31, 2011 | December 25, 2010 | ||||||||||||||||||||
Canada plans | U.S. plan | U.K. plan | MCI plan | Canada plans | U.S. plan | U.K. plan | MCI plan | ||||||||||||||
Weighted average assumptions: | |||||||||||||||||||||
Settlement discount rate(1) | 4.56 | % | N/A | 4.65 | % | 1.30 | % | 5.28 | % | 3.60 | % | 5.35 | % | N/A | |||||||
Rate of compensation increase(2) | 2.50 | % | N/A | N/A | 2.00 | % | 3.00 | % | N/A | N/A | N/A | ||||||||||
Expected return on plan assets | 4.62 | % | N/A | 6.25 | % | N/A | 5.50 | % | N/A | 6.65 | % | N/A |
(1) | Rate utilized at year-end for the following year's pension expense and related balance sheet amounts at current year- end. |
(2) | U.K. plan was closed to future accrual during 2009. |
Canada plans assets | U.K. plan assets | ||||||||||
Target allocations | Actual allocations | Target allocations | Actual allocations | ||||||||
Equities | 33.4 | % | 31.5 | % | 30.0 | % | 26.6 | % | |||
Fixed income | 66.6 | % | 67.8 | % | 40.0 | % | 46.1 | % | |||
Hedge funds | 0.0 | % | 0.0 | % | 16.0 | % | 17.4 | % | |||
Real estate | 0.0 | % | 0.0 | % | 7.0 | % | 4.6 | % | |||
Other | 0.0 | % | 0.7 | % | 7.0 | % | 5.3 | % |
Fair value measurements as of December 31, 2011 | |||||||||||||||
Total at December 31, 2011 | Quoted prices in active markets (Level 1) | Significant observable inputs (Level 2) | Significant unobservable inputs (Level 3) | ||||||||||||
Canada | |||||||||||||||
Cash and cash equivalents | |||||||||||||||
Cash | 49.4 | $ | 49.4 | $ | — | $ | — | ||||||||
Trades awaiting settlement | 1.1 | 1.1 | — | — | |||||||||||
Bank deposits, short-term bills and notes | 41.7 | 0.5 | 41.2 | — | |||||||||||
Debt | |||||||||||||||
Government securities | 699.2 | — | 699.2 | — |
Corporate debt securities | 97.0 | — | 97.0 | — | |||||||||||
Collateralized debt securities | 2.6 | — | — | 2.6 | |||||||||||
Other debt securities | 0.1 | — | 0.1 | — | |||||||||||
Equities | |||||||||||||||
Common stock | 95.8 | 95.8 | — | — | |||||||||||
Other equity securities | 2.8 | 2.8 | — | — | |||||||||||
Investment funds | |||||||||||||||
Equity funds | 309.8 | — | 309.8 | — | |||||||||||
Other | |||||||||||||||
Recoverable taxes | — | — | — | — | |||||||||||
Venture capital | 0.4 | — | — | 0.4 | |||||||||||
Total—Canada | 1,299.9 | 149.6 | 1,147.3 | 3.0 | |||||||||||
U.K. | |||||||||||||||
Cash and cash equivalents | |||||||||||||||
Cash | 25.6 | 25.6 | — | — | |||||||||||
Trades awaiting settlement | (7.5 | ) | (7.5 | ) | — | — | |||||||||
Bank deposits, short-term bills and notes | 20.5 | — | 20.5 | — | |||||||||||
Debt | |||||||||||||||
Government securities | 152.1 | — | 152.1 | — | |||||||||||
Corporate debt securities | 434.4 | — | 434.4 | — | |||||||||||
Interest and inflation linked assets | 212.1 | — | 213.3 | (1.2 | ) | ||||||||||
Collateralized debt securities | 3.2 | — | — | 3.2 | |||||||||||
Equities | |||||||||||||||
Common stock | 392.5 | 390.6 | — | 1.9 | |||||||||||
Other equity securities | 4.8 | 4.8 | — | — | |||||||||||
Investment funds | |||||||||||||||
Debt funds | 201.8 | — | 123.6 | 78.2 | |||||||||||
Equity funds | 79.7 | — | 79.7 | — | |||||||||||
Real estate funds | 61.9 | — | — | 61.9 | |||||||||||
Hedge funds of funds | 321.3 | — | 153.2 | 168.1 | |||||||||||
Other | |||||||||||||||
Repurchase agreements | (66.6 | ) | (66.6 | ) | — | — | |||||||||
Credit default swaps | (14.5 | ) | — | (14.5 | ) | — | |||||||||
Private equity | 19.8 | — | — | 19.8 | |||||||||||
Recoverable taxes | 0.5 | 0.5 | — | — | |||||||||||
Total—U.K. | 1,841.6 | 347.4 | 1,162.3 | 331.9 | |||||||||||
Total | $ | 3,141.5 | $ | 497.0 | $ | 2,309.6 | $ | 334.9 |
Fair value measurements as of December 25, 2010 | |||||||||||||||
Total at December 25, 2010 | Quoted prices in active markets (Level 1) | Significant observable inputs (Level 2) | Significant unobservable inputs (Level 3) | ||||||||||||
Canada | |||||||||||||||
Cash and cash equivalents | |||||||||||||||
Cash | $ | 51.8 | $ | 51.8 | $ | — | $ | — | |||||||
Trades awaiting settlement | — | ||||||||||||||
Bank deposits, short-term bills and notes | 64.0 | 1.5 | 62.5 | — | |||||||||||
Debt | |||||||||||||||
Government securities | 658.6 | — | 658.6 | — | |||||||||||
Corporate debt securities | 93.3 | — | 93.3 | — | |||||||||||
Collateralized debt securities | 5.0 | — | — | 5.0 | |||||||||||
Other debt securities | 0.2 | — | 0.2 | — | |||||||||||
Equities | |||||||||||||||
Common stock | 88.3 | 88.3 | — | — | |||||||||||
Other equity securities | 2.0 | 2.0 | — | — | |||||||||||
Investment funds | |||||||||||||||
Equity funds | 335.7 | — | 335.7 | — | |||||||||||
Other | |||||||||||||||
Recoverable taxes | 0.2 | 0.2 | — | — | |||||||||||
Venture capital | 0.6 | — | — | 0.6 | |||||||||||
Total—Canada | 1,299.7 | 143.8 | 1,150.3 | 5.6 | |||||||||||
U.K. | |||||||||||||||
Cash and cash equivalents | |||||||||||||||
Cash | 161.3 | 161.3 | — | — | |||||||||||
Trades awaiting settlement | (8.4 | ) | (8.4 | ) | — | — | |||||||||
Bank deposits, short-term bills and notes | 34.2 | — | 34.2 | — | |||||||||||
Debt | |||||||||||||||
Government securities | 75.4 | — | 75.4 | — | |||||||||||
Corporate debt securities | 371.0 | — | 369.5 | 1.5 | |||||||||||
Interest and inflation linked assets | 238.5 | — | 231.6 | 6.9 | |||||||||||
Collateralized debt securities | 4.6 | — | — | 4.6 | |||||||||||
Equities | |||||||||||||||
Common stock | 487.3 | 487.3 | — | — | |||||||||||
Other equity securities | 10.1 | 10.1 | — | — | |||||||||||
Investment funds | |||||||||||||||
Debt funds | 139.7 | — | 139.7 | — | |||||||||||
Equity funds | 85.6 | — | 85.6 | — | |||||||||||
Real estate funds | 72.7 | — | 6.9 | 65.8 | |||||||||||
Hedge funds of funds | 253.2 | — | 120.2 | 133.0 | |||||||||||
Other | |||||||||||||||
Repurchase agreements | (101.5 | ) | (101.5 | ) | — | — | |||||||||
Credit default swaps | (3.2 | ) | — | (3.2 | ) | — | |||||||||
Recoverable taxes | 0.6 | 0.6 | — | — | |||||||||||
Total—U.K. | 1,821.1 | 549.4 | 1,059.9 | 211.8 | |||||||||||
Total | $ | 3,120.8 | $ | 693.2 | $ | 2,210.2 | $ | 217.4 |
Canada | U.K. | Total | |||||||||
Balance at December 26, 2009 | $ | 7.0 | $ | 211.4 | $ | 218.4 | |||||
Total gain or loss (realized/unrealized): | |||||||||||
Realized loss | — | (0.7 | ) | (0.7 | ) | ||||||
Unrealized (loss)/gain included in AOCI | (0.3 | ) | 18.8 | 18.5 | |||||||
Purchases, issuances, settlements | (1.4 | ) | (8.4 | ) | (9.8 | ) | |||||
Transfers in/(out) of Level 3 | — | (2.4 | ) | (2.4 | ) | ||||||
Foreign exchange translation (loss)/gain | 0.3 | (6.9 | ) | (6.6 | ) | ||||||
Balance at December 25, 2010 | 5.6 | 211.8 | 217.4 | ||||||||
Total gain or loss (realized/unrealized): | |||||||||||
Realized loss | — | (7.5 | ) | (7.5 | ) | ||||||
Unrealized (loss)/gain included in AOCI | (0.2 | ) | (7.0 | ) | (7.2 | ) | |||||
Purchases, issuances, settlements | (2.4 | ) | 141.1 | 138.7 | |||||||
Transfers in/(out) of Level 3 | — | (4.1 | ) | (4.1 | ) | ||||||
Foreign exchange translation loss | — | (2.4 | ) | (2.4 | ) | ||||||
Balance at December 31, 2011 | $ | 3.0 | $ | 331.9 | $ | 334.9 |
Expected benefit payments | Amount | ||
(In millions) | |||
2012 | $ | 189.4 | |
2013 | $ | 194.0 | |
2014 | $ | 199.0 | |
2015 | $ | 203.5 | |
2016 | $ | 207.6 | |
2017-2022 | $ | 1,175.7 |
Fair value measurements as of December 31, 2011 | |||||||||||||||
Total at December 31, 2011 | Quoted prices in active markets (Level 1) | Significant observable inputs (Level 2) | Significant unobservable inputs (Level 3) | ||||||||||||
Corporate | |||||||||||||||
Equities | |||||||||||||||
Mutual funds | $ | 2.4 | $ | 2.4 | $ | — | $ | — | |||||||
Total—Corporate | $ | 2.4 | $ | 2.4 | $ | — | $ | — |
Fair value measurements as of December 25, 2010 | |||||||||||||||
Total at December 25, 2010 | Quoted prices in active markets (Level 1) | Significant observable inputs (Level 2) | Significant unobservable inputs (Level 3) | ||||||||||||
Corporate | |||||||||||||||
Equities | |||||||||||||||
Mutual funds | $ | 1.9 | $ | 1.9 | $ | — | $ | — | |||||||
Total—Corporate | $ | 1.9 | $ | 1.9 | $ | — | $ | — |
|
Fair Value Measurements at December 31, 2011 Using | |||||||||||||||
Total at December 31, 2011 | Quoted prices in active markets (Level 1) | Significant Other Observable Inputs (Level 2) | Significant Unobservable Inputs (Level 3) | ||||||||||||
(In millions) | |||||||||||||||
Cross currency swaps | $ | (311.9 | ) | $ | — | $ | (311.9 | ) | $ | — | |||||
Foreign currency forwards | 2.2 | — | 2.2 | — | |||||||||||
Commodity swaps | (6.9 | ) | — | (6.9 | ) | — | |||||||||
Total | $ | (316.6 | ) | $ | — | $ | (316.6 | ) | $ | — |
Fair Value Measurements at December 25, 2010 Using | |||||||||||||||
Total at December 25, 2010 | Quoted prices in active markets (Level 1) | Significant Other Observable Inputs (Level 2) | Significant Unobservable Inputs (Level 3) | ||||||||||||
(In millions) | |||||||||||||||
Cross currency swaps | $ | (412.2 | ) | $ | — | $ | (412.2 | ) | $ | — | |||||
Forward starting interest rate swaps | (16.3 | ) | — | (16.3 | ) | — | |||||||||
Foreign currency forwards | (2.0 | ) | — | (2.0 | ) | — | |||||||||
Commodity swaps | 1.2 | — | 1.2 | — | |||||||||||
Total return swaps | 2.9 | — | — | 2.9 | |||||||||||
Total | $ | (426.4 | ) | $ | — | $ | (429.3 | ) | $ | 2.9 |
Rollforward of Level 3 Inputs | |||
Balance at December 26, 2009 | $ | — | |
Total gains or losses (realized/unrealized) | |||
Included in earnings (or change in net assets) | — | ||
Included in AOCI | — | ||
Purchases, issuances and settlements | 2.9 | ||
Transfers In/Out of Level 3 | — | ||
Balance at December 25, 2010 | $ | 2.9 | |
Total gains or losses (realized/unrealized) | |||
Included in earnings (or change in net assets) | 1.5 | ||
Included in AOCI | — | ||
Purchases, issuances and settlements | (4.4 | ) | |
Transfers In/Out of Level 3 | — | ||
Balance at December 31, 2011 | $ | — |
As of December 31, 2011 | ||||||||||||||||
Asset derivatives | Liability derivatives | |||||||||||||||
Notional amount | Balance sheet location | Fair value | Balance sheet location | Fair value | ||||||||||||
Derivatives designated as hedging instruments: | ||||||||||||||||
Cross currency swaps | CAD | 901.3 | Other current assets | $ | — | Current derivative hedging instruments | $ | (103.2 | ) | |||||||
Other assets | — | Long term derivative hedging instruments | (208.7 | ) | ||||||||||||
Foreign currency forwards | USD | 464.6 | Other current assets | — | Current derivative hedging instruments | (1.3 | ) | |||||||||
Other assets | 3.4 | Long term derivative hedging instruments | — | |||||||||||||
Commodity swaps | Gigajoules | 2.2 | Other current assets | — | Current derivative hedging instruments | (1.8 | ) | |||||||||
Other assets | — | Long term derivative hedging instruments | (0.5 | ) | ||||||||||||
Total derivatives designated as hedging instruments | $ | 3.4 | $ | (315.5 | ) | |||||||||||
Derivatives not designated as hedging instruments: | ||||||||||||||||
Aluminum swaps | Metric tonnes (actual) | 8,825.0 | Other current assets | $ | — | Current derivative hedging instruments | $ | (1.3 | ) | |||||||
Other assets | — | Long term derivative hedging instruments | (3.3 | ) | ||||||||||||
Diesel swaps | Metric tonnes (actual) | 9,668.0 | Other current assets | 0.1 | Current derivative hedging instruments | — | ||||||||||
Total derivatives not designated as hedging instruments | $ | 0.1 | $ | (4.6 | ) |
As of December 25, 2010 | ||||||||||||||||
Asset derivatives | Liability derivatives | |||||||||||||||
Notional amount | Balance sheet location | Fair value | Balance sheet location | Fair value | ||||||||||||
Derivatives designated as hedging instruments: | ||||||||||||||||
Cross currency swaps | USD | 1,637.1 | Other current assets | $ | — | Current derivative hedging instruments | $ | (11.2 | ) | |||||||
Other assets | — | Long term derivative hedging instruments | (401.0 | ) | ||||||||||||
Forward starting interest rate swaps | USD | — | Other current assets | — | Current derivative hedging instruments | — | ||||||||||
Foreign currency forwards | USD | 426.0 | Other current assets | 0.3 | Current derivative hedging instruments | (12.4 | ) | |||||||||
Other assets | 0.1 | Long term derivative hedging instruments | (3.4 | ) | ||||||||||||
Commodity swaps | Gigajoules | 2.2 | Other current assets | 0.1 | Current derivative hedging instruments | (1.8 | ) | |||||||||
Other assets | — | Long term derivative hedging instruments | (0.4 | ) | ||||||||||||
Total derivatives designated as hedging instruments | $ | 0.5 | $ | (430.2 | ) | |||||||||||
Derivatives not designated as hedging instruments: | ||||||||||||||||
Foreign currency forwards | USD | 13.9 | Other current assets | $ | — | Current derivative hedging instruments | $ | (0.8 | ) | |||||||
Total return swap | AUD | 42.1 | Other current assets | 1.2 | Current derivative hedging instruments | — | ||||||||||
Option contracts | FGL.ASX Shares | 7.6 | Other current assets | 3.1 | Current derivative hedging instruments | (0.2 | ) | |||||||||
Total derivatives not designated as hedging instruments | $ | 4.3 | $ | (1.0 | ) |
For the year ended December 31, 2011 | ||||
Derivatives not in hedging relationship | Location of gain (loss) recognized in income on derivative | Amount of gain (loss) recognized in income on derivative | ||
Commodity swaps | Cost of goods sold | $ | (4.7 | ) |
Cash settled total return swap | Other income (expense), net | (0.6 | ) | |
Option contracts | Other income (expense), net | 1.5 | ||
Foreign currency forwards | Other income (expense), net | (0.1 | ) | |
$ | (3.9 | ) |
For the year ended December 31, 2011 | |||||||||||||||
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) | ||||||||||
Cross currency contracts(1) | $ | (0.2 | ) | Other income (expense), net | $ | 3.0 | Other income (expense), net | $ | — | ||||||
Interest expense | — | Interest expense | — | ||||||||||||
Forward starting interest rate swaps | — | Interest expense | (1.6 | ) | Interest expense | — | |||||||||
Foreign currency forwards | (0.4 | ) | Other income (expense), net | (6.7 | ) | Other income (expense), net | — | ||||||||
Cost of goods sold | (9.6 | ) | Cost of goods sold | — | |||||||||||
Marketing, general and administrative expenses | — | Marketing, general and administrative expenses | — | ||||||||||||
Commodity swaps | (0.1 | ) | Cost of goods sold | — | Cost of goods sold | — | |||||||||
Total | $ | (0.7 | ) | $ | (14.9 | ) | $ | — |
(1) | As cash flow hedges, the foreign exchange gain (loss) component of these cross currency swaps was offset by the corresponding gain (loss) on the hedged forecasted transactions in Other income (expense), net and Interest expense, net. In the fourth quarter of 2011, the cross currency swaps were dedesignated as cash flow hedges and redesignated in net investment hedges. |
For the year ended December 31, 2011 | |||||||||||||||
Derivatives in net investment 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) | ||||||||||
Cross currency contracts | $ | 0.3 | Other income (expense), net | $ | — | Other income (expense), net | $ | — | |||||||
Total | $ | 0.3 | $ | — | $ | — |
For the year ended December 25, 2010 | |||||||||||||||
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) | ||||||||||
Cross currency contracts(1) | $ | 9.9 | Other income (expense), net | $ | (39.9 | ) | Other income (expense), net | $ | — | ||||||
Interest expense | (12.1 | ) | Interest expense | — | |||||||||||
Forward starting interest rate swaps | (13.9 | ) | Interest expense | (0.2 | ) | Interest expense | — | ||||||||
Foreign currency forwards | (6.3 | ) | Other income (expense), net | (5.0 | ) | Other income (expense), net | — | ||||||||
Cost of goods sold | (1.7 | ) | Cost of goods sold | — | |||||||||||
Marketing, general and administrative expenses | 0.1 | Marketing, general and administrative expenses | — | ||||||||||||
Commodity swaps | (1.2 | ) | Cost of goods sold | (1.7 | ) | Cost of goods sold | — | ||||||||
Total | $ | (11.5 | ) | $ | (60.5 | ) | $ | — |
(1) | The foreign exchange gain (loss) component of these cross currency swaps is offset by the corresponding gain (loss) on the hedged forecasted transactions in Other income (expense), net and Interest expense, net. |
For the year ended December 26, 2009 | |||||||||||||||
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) | ||||||||||
Cross currency contracts(1) | $ | (3.2 | ) | Other income (expense), net | $ | (120.3 | ) | Other income (expense), net | $ | — | |||||
Interest expense | (5.8 | ) | Interest expense | — | |||||||||||
Forward starting interest rate swaps | 5.8 | Interest expense | — | Interest expense | — | ||||||||||
Foreign currency forwards | (61.7 | ) | Other income (expense), net | 3.0 | Other income (expense), net | — | |||||||||
Cost of goods sold | 13.8 | Cost of goods sold | — | ||||||||||||
Marketing, general and administrative expenses | (0.5 | ) | Marketing, general and administrative expenses | — | |||||||||||
Commodity swaps | 1.1 | Cost of goods sold | (3.5 | ) | Cost of goods sold | — | |||||||||
Total | $ | (58.0 | ) | $ | (113.3 | ) | $ | — |
(1) | The foreign exchange gain (loss) component of these cross currency swaps is offset by the corresponding gain (loss) on the hedged forecasted transactions in Other income (expense), net and Interest expense, net. |
For the year ended December 31, 2011 | ||||
Derivatives not in hedging relationship | Location of gain (loss) recognized in income on derivative | Amount of gain (loss) recognized in income on derivative | ||
Commodity swaps | Cost of goods sold | $ | (4.7 | ) |
Cash settled total return swap | Other income (expense), net | (0.6 | ) | |
Option contracts | Other income (expense), net | 1.5 | ||
Foreign currency forwards | Other income (expense), net | (0.1 | ) | |
$ | (3.9 | ) |
For the year ended December 25, 2010 | ||||
Derivatives not in hedging relationship | Location of gain (loss) recognized in income on derivative | Amount of gain (loss) recognized in income on derivative | ||
Cash settled total return swap | Other income (expense), net | $ | 28.3 | |
Option contracts | Other income (expense), net | 21.7 | ||
Foreign currency forwards | Other income (expense), net | (6.0 | ) | |
$ | 44.0 |
For the year ended December 26, 2009 | ||||
Derivatives not in hedging relationship | Location of gain (loss) recognized in income on derivative | Amount of gain (loss) recognized in income on derivative | ||
Cash settled total return swap | Other income (expense), net | $ | 0.7 | |
Physical commodity contracts | Cost of goods sold | (9.6 | ) | |
$ | (8.9 | ) |
For the year ended December 31, 2011 | ||||
Derivatives not in hedging relationship | Location of gain (loss) recognized in income on derivative | Amount of gain (loss) recognized in income on derivative | ||
Commodity swaps | Cost of goods sold | $ | (4.7 | ) |
Cash settled total return swap | Other income (expense), net | (0.6 | ) | |
Option contracts | Other income (expense), net | 1.5 | ||
Foreign currency forwards | Other income (expense), net | (0.1 | ) | |
$ | (3.9 | ) |
For the year ended December 25, 2010 | ||||
Derivatives not in hedging relationship | Location of gain (loss) recognized in income on derivative | Amount of gain (loss) recognized in income on derivative | ||
Cash settled total return swap | Other income (expense), net | $ | 28.3 | |
Option contracts | Other income (expense), net | 21.7 | ||
Foreign currency forwards | Other income (expense), net | (6.0 | ) | |
$ | 44.0 |
For the year ended December 26, 2009 | ||||
Derivatives not in hedging relationship | Location of gain (loss) recognized in income on derivative | Amount of gain (loss) recognized in income on derivative | ||
Cash settled total return swap | Other income (expense), net | $ | 0.7 | |
Physical commodity contracts | Cost of goods sold | (9.6 | ) | |
$ | (8.9 | ) |
|
As of | |||||||
December 31, 2011 | December 25, 2010 | ||||||
(In millions) | |||||||
Accrued compensation | $ | 54.3 | $ | 87.3 | |||
Accrued excise taxes | 246.2 | 221.5 | |||||
Accrued interest | 23.1 | 35.2 | |||||
Accrued selling and marketing costs | 117.3 | 92.8 | |||||
Container liability | 43.5 | 41.5 | |||||
Accrued pension and postretirement benefits | 10.1 | 8.8 | |||||
Other | 152.3 | 317.5 | |||||
Accrued expenses and other liabilities | $ | 646.8 | $ | 804.6 |
|
Amount | |||
(In millions) | |||
2012 | $ | 186.4 | |
2013 | 193.4 | ||
2014 | 156.0 | ||
2015 | 92.4 | ||
2016 | 92.4 | ||
Thereafter | — | ||
Total | $ | 720.6 |
Amount | |||
(In millions) | |||
2012 | $ | 79.6 | |
2013 | 71.0 | ||
2014 | 70.2 | ||
2015 | 56.3 | ||
2016 | 44.8 | ||
Thereafter | 111.4 | ||
Total | $ | 433.3 |
Amount | |||
(In millions) | |||
2012 | $ | 30.0 | |
2013 | 24.1 | ||
2014 | 17.4 | ||
2015 | 10.9 | ||
2016 | 6.4 | ||
Thereafter | 27.1 | ||
Total | $ | 115.9 |
Purchased tax credits indemnity reserve | Tax, civil and labor indemnity reserve | Total indemnity reserves | |||||||||
(In millions) | |||||||||||
Balance at December 28, 2008 | $ | 120.8 | $ | 12.4 | $ | 133.2 | |||||
Changes in estimates | (5.9 | ) | (6.4 | ) | (12.3 | ) | |||||
Foreign exchange transaction impact | 39.7 | 3.5 | 43.2 | ||||||||
Balance at December 26, 2009 | $ | 154.6 | $ | 9.5 | $ | 164.1 | |||||
Changes in estimates | (32.3 | ) | — | (32.3 | ) | ||||||
Cash settlement | (96.0 | ) | — | (96.0 | ) | ||||||
Foreign exchange transaction impact | (2.6 | ) | 0.5 | (2.1 | ) | ||||||
Balance at December 25, 2010 | $ | 23.7 | $ | 10.0 | $ | 33.7 | |||||
Changes in estimates | — | — | — | ||||||||
Foreign exchange transaction impact | (2.2 | ) | (0.9 | ) | (3.1 | ) | |||||
Balance at December 31, 2011 | $ | 21.5 | $ | 9.1 | $ | 30.6 |
|
2011 | First | Second | Third | Fourth | Full Year | ||||||||||||||
(In millions, except per share data) | |||||||||||||||||||
Sales | $ | 997.3 | $ | 1,383.1 | $ | 1,393.9 | $ | 1,395.6 | $ | 5,169.9 | |||||||||
Excise taxes | (306.9 | ) | (449.5 | ) | (439.5 | ) | (458.3 | ) | (1,654.2 | ) | |||||||||
Net sales | 690.4 | 933.6 | 954.4 | 937.3 | 3,515.7 | ||||||||||||||
Cost of goods sold | (427.2 | ) | (523.9 | ) | (550.5 | ) | (547.5 | ) | (2,049.1 | ) | |||||||||
Gross profit | $ | 263.2 | $ | 409.7 | $ | 403.9 | $ | 389.8 | $ | 1,466.6 | |||||||||
Amounts attributable to MCBC: | |||||||||||||||||||
Income from continuing operations | $ | 82.6 | $ | 224.3 | $ | 194.7 | $ | 172.4 | $ | 674.0 | |||||||||
Gain (loss) from discontinued operations, net of tax | 0.3 | (1.5 | ) | 2.7 | 0.8 | 2.3 | |||||||||||||
Net income | $ | 82.9 | $ | 222.8 | $ | 197.4 | $ | 173.2 | $ | 676.3 | |||||||||
Basic income (loss) per share: | |||||||||||||||||||
From continuing operations | 0.44 | 1.20 | 1.05 | 0.95 | 3.65 | ||||||||||||||
From discontinued operations | — | (0.01 | ) | 0.01 | — | 0.01 | |||||||||||||
Basic net income per share | 0.44 | 1.19 | 1.06 | 0.95 | 3.66 | ||||||||||||||
Diluted income (loss) per share: | |||||||||||||||||||
From continuing operations | 0.44 | 1.19 | 1.05 | 0.95 | 3.62 | ||||||||||||||
From discontinued operations | — | (0.01 | ) | 0.01 | — | 0.01 | |||||||||||||
Diluted net income per share | 0.44 | 1.18 | 1.06 | 0.95 | 3.63 |
2010 | First | Second | Third | Fourth | Full Year | ||||||||||||||
(In millions, except per share data) | |||||||||||||||||||
Sales | $ | 947.0 | $ | 1,282.6 | $ | 1,260.1 | $ | 1,213.4 | $ | 4,703.1 | |||||||||
Excise taxes | (286.0 | ) | (399.3 | ) | (385.1 | ) | (378.3 | ) | (1,448.7 | ) | |||||||||
Net sales | 661.0 | 883.3 | 875.0 | 835.1 | 3,254.4 | ||||||||||||||
Cost of goods sold | (404.4 | ) | (474.8 | ) | (457.4 | ) | (475.6 | ) | (1,812.2 | ) | |||||||||
Gross profit | $ | 256.6 | $ | 408.5 | $ | 417.6 | $ | 359.5 | $ | 1,442.2 | |||||||||
Amounts attributable to MCBC: | |||||||||||||||||||
Income from continuing operations | $ | 62.0 | $ | 237.8 | $ | 257.0 | $ | 111.3 | $ | 668.1 | |||||||||
Gain (loss) from discontinued operations, net of tax | 42.6 | (0.6 | ) | (0.9 | ) | (1.5 | ) | 39.6 | |||||||||||
Net income | $ | 104.6 | $ | 237.2 | $ | 256.1 | $ | 109.8 | $ | 707.7 | |||||||||
Basic income (loss) per share: | |||||||||||||||||||
From continuing operations | $ | 0.33 | $ | 1.28 | $ | 1.39 | $ | 0.60 | $ | 3.59 | |||||||||
From discontinued operations | 0.23 | — | (0.01 | ) | (0.01 | ) | 0.21 | ||||||||||||
Basic net income per share | $ | 0.56 | $ | 1.28 | $ | 1.38 | $ | 0.59 | $ | 3.80 | |||||||||
Diluted income (loss) per share: | |||||||||||||||||||
From continuing operations | $ | 0.33 | $ | 1.27 | $ | 1.38 | $ | 0.59 | $ | 3.57 | |||||||||
From discontinued operations | 0.23 | — | (0.01 | ) | (0.01 | ) | 0.21 | ||||||||||||
Diluted net income per share | $ | 0.56 | $ | 1.27 | $ | 1.37 | $ | 0.58 | $ | 3.78 |
|
Balance at beginning of year | Additions charged to costs and expenses | Deductions(1) | Foreign exchange impact | Balance at end of year | |||||||||||||||
Allowance for doubtful accounts—trade accounts receivable | |||||||||||||||||||
Year ended: | |||||||||||||||||||
December 31, 2011 | $ | 7.4 | $ | 3.7 | $ | (0.7 | ) | $ | (0.1 | ) | $ | 10.3 | |||||||
December 25, 2010 | $ | 10.1 | $ | 3.8 | $ | (6.2 | ) | $ | (0.3 | ) | $ | 7.4 | |||||||
December 26, 2009 | $ | 7.9 | $ | 5.0 | $ | (3.6 | ) | $ | 0.8 | $ | 10.1 | ||||||||
Allowance for doubtful accounts—current trade loans | |||||||||||||||||||
Year ended: | |||||||||||||||||||
December 31, 2011 | $ | 2.5 | $ | 1.6 | $ | (2.4 | ) | $ | 0.1 | $ | 1.8 | ||||||||
December 25, 2010 | $ | 2.8 | $ | 1.4 | $ | (1.7 | ) | $ | — | $ | 2.5 | ||||||||
December 26, 2009 | $ | 3.3 | $ | 1.4 | $ | (2.1 | ) | $ | 0.2 | $ | 2.8 | ||||||||
Allowance for doubtful accounts—long-term trade loans | |||||||||||||||||||
Year ended: | |||||||||||||||||||
December 31, 2011 | $ | 6.6 | $ | 2.5 | $ | (4.8 | ) | $ | 0.1 | $ | 4.4 | ||||||||
December 25, 2010 | $ | 7.3 | $ | 4.0 | $ | (4.5 | ) | $ | (0.2 | ) | $ | 6.6 | |||||||
December 26, 2009 | $ | 8.1 | $ | 4.1 | $ | (5.6 | ) | $ | 0.7 | $ | 7.3 | ||||||||
Allowance for obsolete supplies | |||||||||||||||||||
Year ended: | |||||||||||||||||||
December 31, 2011 | $ | 4.1 | $ | 2.0 | $ | (0.2 | ) | $ | — | $ | 5.9 | ||||||||
December 25, 2010 | $ | 4.1 | $ | 0.4 | $ | (0.3 | ) | $ | (0.1 | ) | $ | 4.1 | |||||||
December 26, 2009 | $ | 4.6 | $ | — | $ | (0.9 | ) | $ | 0.4 | $ | 4.1 | ||||||||
Deferred tax valuation account | |||||||||||||||||||
Year ended: | |||||||||||||||||||
December 31, 2011 | $ | 39.0 | $ | 2.4 | $ | (12.3 | ) | $ | (0.1 | ) | $ | 29.0 | |||||||
December 25, 2010 | $ | 19.6 | $ | 18.6 | $ | (0.3 | ) | $ | 1.1 | $ | 39.0 | ||||||||
December 26, 2009 | $ | 12.9 | $ | 15.1 | $ | (10.6 | ) | $ | 2.2 | $ | 19.6 |
(1) | Amounts related to write-offs of uncollectible accounts, claims or obsolete inventories and supplies. Amounts related to the deferred tax asset valuation allowance are primarily due to capital loss carryforwards generated by coffee credit settlements in discontinued operations, re-evaluations of deferred tax assets and our investment in Brewers' Retail Inc, which, if sold, would result in a capital loss. |
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