MOLSON COORS BREWING CO, 10-Q filed on 5/7/2013
Quarterly Report
Document and Entity Information Document
3 Months Ended
Mar. 30, 2013
May 2, 2013
Common Class A [Member]
May 2, 2013
Common Class B [Member]
May 2, 2013
Class A Exchangeable Shares [Member]
May 2, 2013
Class B Exchangeable Shares [Member]
Entity Information [Line Items]
 
 
 
 
 
Entity Registrant Name
MOLSON COORS BREWING CO 
 
 
 
 
Trading Symbol
tap 
 
 
 
 
Entity Central Index Key
0000024545 
 
 
 
 
Document Type
10-Q 
 
 
 
 
Document Period End Date
Mar. 30, 2013 
 
 
 
 
Document Fiscal Year Focus
2013 
 
 
 
 
Document Fiscal Period Focus
Q1 
 
 
 
 
Current Fiscal Year End Date
--12-29 
 
 
 
 
Amendment Flag
false 
 
 
 
 
Entity Filer Category
Large Accelerated Filer 
 
 
 
 
Entity Common Stock, Shares Outstanding
 
2,556,894 
157,966,995 
 
 
Entity Exchangeable, Shares Outstanding
 
 
 
2,896,941 
19,186,392 
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (USD $)
In Millions, except Per Share data, unless otherwise specified
3 Months Ended
Mar. 30, 2013
Mar. 31, 2012
Sales
$ 1,184.8 
$ 1,008.1 
Excise taxes
(356.3)
(316.7)
Net sales
828.5 
691.4 
Cost of goods sold
(547.1)
(438.8)
Gross profit
281.4 
252.6 
Marketing, general and administrative expenses
(285.3)
(248.2)
Special items, net
(1.5)
(1.5)
Equity income in MillerCoors
117.4 
118.9 
Operating income (loss)
112.0 
121.8 
Interest income (expense), net
(74.9)
(23.8)
Other income (expense), net
4.3 
(1.4)
Income (loss) from continuing operations before income taxes
41.4 
96.6 
Income tax benefit (expense)
(3.5)
(17.3)
Net Income (loss) from continuing operations
37.9 
79.3 
Income (loss) from discontinued operations, net of tax
(0.9)
0.1 
Net income (loss) including noncontrolling interests
37.0 
79.4 
Less: Net (income) loss attributable to noncontrolling interests
 
0.1 
Comprehensive Income (Loss), Net of Tax, Attributable to Noncontrolling Interest
1.4 
(0.1)
Net income (loss) attributable to Molson Coors Brewing Company
35.6 
79.5 
Basic net income (loss) attributable to Molson Coors Brewing Company per share:
 
 
From continuing operations (in dollars per share)
$ 0.20 
$ 0.44 
From discontinued operations (in dollars per share)
$ 0.00 
$ 0.00 
Basic net income (loss) attributable to Molson Coors Brewing Company per share
$ 0.20 
$ 0.44 
Diluted net income (loss) attributable to Molson Coors Brewing Company per share:
 
 
From continuing operations (in dollars per share)
$ 0.20 
$ 0.44 
From discontinued operations (in dollars per share)
$ 0.00 
$ 0.00 
Diluted net income (loss) attributable to Molson Coors Brewing Company per share
$ 0.20 
$ 0.44 
Weighted average shares - basic (in shares)
181.7 
180.3 
Weighted average shares - diluted (in shares)
182.9 
181.7 
Amounts attributable to Molson Coors Brewing Company
 
 
Net income (loss) from continuing operations
36.5 
79.4 
Income (loss) from discontinued operations, net of tax
(0.9)
0.1 
Net income (loss) attributable to Molson Coors Brewing Company
$ 35.6 
$ 79.5 
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) (USD $)
In Millions, unless otherwise specified
3 Months Ended
Mar. 30, 2013
Mar. 31, 2012
Net income (loss) including noncontrolling interests
$ 37.0 
$ 79.4 
Other comprehensive income (loss), net of tax:
 
 
Foreign currency translation adjustments
(261.3)
107.8 
Unrealized (loss) gain on derivative instruments
13.1 
(17.8)
Reclassification adjustment on derivative instruments
0.1 
1.8 
Amortization of net prior service costs and net actuarial losses
2.4 
Amortization of net prior service costs and net actuarial losses to income
10.6 
9.9 
Ownership share of unconsolidated subsidiaries' other comprehensive income (loss)
(6.7)
9.4 
Total other comprehensive income (loss), net of tax
(241.8)
111.1 
Comprehensive income (loss)
(204.8)
190.5 
Less: Comprehensive income (loss) attributable to the noncontrolling interest
(1.4)
0.1 
Comprehensive income (loss) attributable to MCBC
$ (206.2)
$ 190.6 
CONDENSED CONSOLIDATED BALANCE SHEETS (USD $)
In Millions, unless otherwise specified
Mar. 30, 2013
Dec. 29, 2012
Current assets:
 
 
Cash and cash equivalents
$ 511.5 
$ 624.0 
Accounts receivable, net
572.2 
660.5 
Other receivables, net
138.0 
92.9 
Inventories:
 
 
Finished, net
174.2 
139.9 
In process
23.7 
20.3 
Raw materials
45.4 
43.5 
Packaging materials, net
14.3 
10.2 
Total inventories, net
257.6 
213.9 
Other assets, net
141.5 
117.5 
Deferred tax assets
68.9 
39.2 
Total current assets
1,689.7 
1,748.0 
Properties, net
1,925.5 
1,995.9 
Goodwill
2,365.7 
2,453.1 
Other intangibles, net
7,028.3 
7,234.8 
Investment in MillerCoors
2,530.4 
2,431.8 
Deferred tax assets
189.8 
125.4 
Notes receivable, net
24.4 
26.3 
Other assets
188.9 
196.9 
Total assets
15,942.7 
16,212.2 
Current liabilities :
 
 
Accounts payable
455.5 
427.0 
Accrued expenses and other liabilities
708.5 
759.9 
Derivative hedging instruments
13.5 
6.0 
Deferred tax liabilities
168.9 
152.3 
Current portion of long-term debt and short-term borrowings
1,260.4 
1,245.6 
Discontinued operations
8.0 
7.9 
Total current liabilities
2,614.8 
2,598.7 
Long-term debt
3,390.8 
3,422.5 
Pension and post-retirement benefits
776.6 
833.0 
Derivative hedging instruments
206.5 
222.2 
Deferred tax liabilities
966.4 
948.5 
Unrecognized tax benefits
82.0 
81.8 
Other liabilities
88.4 
93.9 
Discontinued operations
20.3 
20.0 
Total liabilities
8,145.8 
8,220.6 
Commitments and contingencies (Note 16)
   
   
Capital stock:
 
 
Preferred stock, non-voting, no par value (authorized: 25.0 shares; none issued)
Paid-in capital
3,659.7 
3,623.6 
Retained earnings
3,877.9 
3,900.5 
Accumulated other comprehensive income (loss)
(279.8)
(72.3)
Class B common stock held in treasury at cost (7.5 shares at September 29, 2012 and December 31, 2011)
(321.1)
(321.1)
Total Molson Coors Brewing Company stockholders' equity
7,771.1 
7,966.9 
Noncontrolling interests
25.8 
24.7 
Total equity
7,796.9 
7,991.6 
Total liabilities and equity
15,942.7 
16,212.2 
Class A common stock, voting [Member]
 
 
Capital stock:
 
 
Common stock
Class B common stock, non-voting [Member]
 
 
Capital stock:
 
 
Common stock
1.7 
1.6 
Class A Exchangeable Shares [Member]
 
 
Capital stock:
 
 
Exchangeable shares
108.5 
110.2 
Class B Exchangeable Shares [Member]
 
 
Capital stock:
 
 
Exchangeable shares
$ 724.2 
$ 724.4 
CONSOLIDATED BALANCE SHEETS (PARENTHETICALS) (USD $)
In Millions, except Per Share data, unless otherwise specified
Mar. 30, 2013
Dec. 29, 2012
Preferred Stock, Non-voting, No Par Value
$ 0 
$ 0 
Preferred Stock, Shares Authorized
25.0 
25.0 
Preferred Stock, Shares Issued
Treasury Stock, Shares
7.5 
7.5 
Common Class A [Member]
 
 
Common Stock, Par or Stated Value Per Share
$ 0.01 
$ 0.01 
Common Stock, Shares Authorized
500.0 
500.0 
Common Stock, Shares, Issued
2.6 
2.6 
Common Stock, Shares, Outstanding
2.6 
2.6 
Common Class B [Member]
 
 
Common Stock, Par or Stated Value Per Share
$ 0.01 
$ 0.01 
Common Stock, Shares Authorized
500.0 
500.0 
Common Stock, Shares, Issued
165.2 
164.2 
Class A Exchangeable Shares [Member]
 
 
Exchangeable Stock, No Par Value
$ 0 
$ 0 
Exchangeable Stock, Shares Issued
2.9 
2.9 
Exchangeable Stock, Shares Outstanding
2.9 
2.9 
Class B Exchangeable Shares [Member]
 
 
Exchangeable Stock, No Par Value
$ 0 
$ 0 
Exchangeable Stock, Shares Issued
19.2 
19.3 
Exchangeable Stock, Shares Outstanding
19.2 
19.3 
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (USD $)
In Millions, unless otherwise specified
3 Months Ended
Mar. 30, 2013
Mar. 31, 2012
Cash flows from operating activities:
 
 
Net income (loss) including noncontrolling interests
$ 37.0 
$ 79.4 
Adjustments to reconcile net income to net cash provided by operating activities:
 
 
Depreciation and amortization
80.2 
53.4 
Amortization of debt issuance costs and discounts
7.3 
5.6 
Share-based compensation
11.1 
4.8 
Loss on sale or impairment of properties and intangibles
1.4 
1.0 
Deferred income taxes
1.3 
4.3 
Equity income in MillerCoors
(117.4)
(118.9)
Distributions from MillerCoors
117.4 
118.9 
Equity in net income of other unconsolidated affiliates
(1.1)
(0.1)
Distributions from other unconsolidated affiliates
11.7 
11.8 
Excess tax benefits from share-based compensation
(1.6)
(3.3)
Unrealized (gain) loss on foreign currency fluctuations and derivative instruments
19.1 
Change in current assets and liabilities (net of assets acquired and liabilities assumed in business combinations) and other
(48.9)
(106.4)
(Gain) loss from discontinued operations
0.9 
(0.1)
Net cash provided by operating activities
118.4 
50.4 
Cash flows from investing activities:
 
 
Additions to properties
(68.3)
(33.8)
Proceeds from sales of properties and other long-lived assets
3.7 
0.8 
Investment in MillerCoors
(331.8)
(236.0)
Return of capital from MillerCoors
222.4 
124.6 
Payments on settlement of derivative instruments
(110.6)
Investment in and advances to an unconsolidated affiliate
(4.6)
Loan repayments
2.6 
3.8 
Loan advances
(2.5)
(2.4)
Net cash used in investing activities
(173.9)
(258.2)
Cash flows from financing activities:
 
 
Exercise of stock options under equity compensation plans
27.2 
19.7 
Excess tax benefits from share-based compensation
1.6 
3.3 
Dividends paid
(58.2)
(57.8)
Dividends paid to noncontrolling interests holders
(1.7)
Payments for purchase of noncontrolling interest
0.2 
Payments on long-term debt and capital lease obligations
(0.1)
Proceeds from short-term borrowings
5.9 
Payments on short-term borrowings
(13.8)
(10.8)
Net proceeds from (payments on) revolving credit facilities
(1.2)
1.5 
Change in overdraft balances and other
3.5 
Net cash provided by (used in) financing activities
(35.2)
(45.9)
Cash and cash equivalents:
 
 
Net increase (decrease) in cash and cash equivalents
(90.7)
(253.7)
Effect of foreign exchange rate changes on cash and cash equivalents
(21.8)
11.1 
Balance at beginning of year
624.0 
1,078.9 
Balance at end of period
$ 511.5 
$ 836.3 
Basis of Presentation and Summary of Significant Accounting Policies
Basis of Presentation and Summary of Significant Accounting Policies
Basis of Presentation and Summary of Significant Accounting Policies
Unless otherwise noted in this report, any description of "we", "us" or "our" includes Molson Coors Brewing Company ("MCBC" or the "Company"), principally a holding company, and its subsidiaries. Our subsidiaries include: Molson Coors Canada, operating in Canada; MillerCoors LLC ("MillerCoors"), which is accounted for by us under the equity method of accounting, operating in the United States ("U.S."); Molson Coors Europe, operating in Czech Republic, Serbia, Croatia, Romania, Bulgaria, Hungary, Montenegro, Bosnia-Herzegovina and Slovakia (collectively, "Central Europe"), as well as the United Kingdom ("U.K.") and the Republic of Ireland; Molson Coors International ("MCI"), operating in various other countries; and our other non-operating subsidiaries. Effective for the first day of our 2013 fiscal year, we combined our U.K. and Ireland business with our Central Europe operations, which resulted in our Europe segment, and we have recast the historical presentation of segment information accordingly.
Unless otherwise indicated, information in this report is presented in U.S. dollars ("USD" or "$").
The accompanying unaudited condensed consolidated interim financial statements reflect all adjustments which are necessary for a fair statement of the financial position, results of operations and cash flows for the periods presented in accordance with accounting principles generally accepted in the United States of America ("U.S. GAAP"). Such unaudited interim financial statements have been prepared in accordance with the instructions to Form 10-Q pursuant to the rules and regulations of the SEC. Certain information and footnote disclosures normally included in financial statements prepared in accordance with U.S. GAAP have been condensed or omitted pursuant to such rules and regulations.
These unaudited condensed consolidated interim financial statements should be read in conjunction with our Annual Report and have been prepared on a consistent basis with the accounting policies described in Note 1 of the Notes to the Audited Consolidated Financial Statements ("Notes") included in our Annual Report on Form 10-K for the year ended December 29, 2012 ("Annual Report"). Our accounting polices did not change in the first quarter of 2013. The results of operations for the 13 weeks ended March 30, 2013, are not necessarily indicative of the results that may be achieved for the full fiscal year.
We follow a 52/53 week fiscal reporting calendar. Unless otherwise indicated, the first quarter of 2013 and 2012 refer to the 13 weeks ended March 30, 2013, and March 31, 2012, respectively. Fiscal year 2013 refers to the 52 weeks ending December 28, 2013, and fiscal year 2012 refers to the 52 weeks ended December 29, 2012.
MillerCoors and Central Europe follow a monthly reporting calendar. The first quarter of 2013 and 2012 refer to the three months ended March 31, 2013, and March 31, 2012, respectively, except for Central Europe which is excluded from our first quarter 2012 actual results as the acquisition of this business occurred in the second quarter of 2012.
New Accounting Pronouncements
New Accounting Pronouncements
New Accounting Pronouncements
Adoption of New Accounting Pronouncements
Disclosure about Offsetting Assets and Liabilities
In December 2011, the FASB issued authoritative guidance enhancing the disclosure requirements related to offsetting asset and liability positions. The update creates new disclosure requirements about the nature of an entity's rights of offset and related arrangements associated with its financial instruments and derivative instruments. The new disclosures are designed to better facilitate comparison between financial statements prepared under U.S. GAAP and International Financial Reporting Standards ("IFRS") by requiring entities to provide financial statement users information about both gross and net exposures. The guidance was effective for our quarter ended March 30, 2013. The adoption of this guidance does not have an impact on our financial position or results from operations, although we have included additional disclosure noting that our derivative agreements do not allow us to net positions with the same counterparty and therefore, we present our derivative positions gross in our condensed consolidated balance sheets. See Note 14, "Derivative Instruments and Hedging Activities."
Reclassification of Items from Accumulated Other Comprehensive Income (Loss)
In February 2013, the FASB issued authoritative guidance which adds new disclosure requirements for items reclassified out of accumulated other comprehensive income (loss) ("AOCI"). The update requires that an entity present either in a single note or parenthetically on the face of the financial statements, the effect of significant amounts reclassified from each component of AOCI based on its source and the income statement line items affected by the reclassification. The guidance was effective for our quarter ended March 30, 2013. We have separately disclosed the required information related to reclassification adjustments within Note 13, "Accumulated Other Comprehensive Income." The adoption of this guidance does not have an impact on our financial position or results from operations.
New Accounting Pronouncements Not Yet Adopted
Joint and Several Liability Arrangements
In February 2013, the FASB issued authoritative guidance for the recognition, measurement, and disclosure of obligations resulting from joint and several liability arrangements for which the total amount of the obligation is fixed at the reporting date. The guidance is effective for annual reporting periods beginning on or after December 15, 2013, and interim reporting periods thereafter. We do not anticipate that this guidance will have an impact on our financial position or results of operations.
Cumulative Translation Adjustment
In March 2013, the FASB issued authoritative guidance on a parent's accounting for the cumulative translation adjustment ("CTA") upon derecognition of certain subsidiaries or groups of assets within a foreign entity or of an investment in a foreign entity. This update will also resolve the diversity in practice for the treatment of business combinations achieved in stages (sometimes also referred to as step acquisitions) involving a foreign entity. The guidance is effective for annual reporting periods beginning on or after December 15, 2013, and interim reporting periods thereafter. We do not anticipate that this guidance will have an impact on our financial position or results of operations.
Liquidation Basis of Accounting
In April 2013, the FASB issued authoritative guidance to clarify when it is appropriate to apply the liquidation basis of accounting. Additionally, the update provides guidance for recognition and measurement of assets and liabilities and requirements for financial statements prepared using the liquidation basis of accounting. Under the amendment, entities are required to prepare their financial statements under the liquidation basis of accounting when a liquidation becomes imminent. The guidance is effective for annual reporting periods beginning after December 15, 2013, and interim reporting periods therein. We do not anticipate that this guidance will have an impact on our financial position or results of operations.
Acquisition of Molson Coors Central Europe
Acquisition of Molson Coors Central Europe
Acquisition of StarBev
General
In accordance with our strategy to increase our portfolio of premium brands and deepen our reach into growth markets around the world, we completed our Acquisition (the "Acquisition") of StarBev Holdings S.à r.l. ("StarBev") from StarBev L.P. (the "Seller") on June 15, 2012, for €2.7 billion (or $3.4 billion), including the assumption and payoff of pre-existing StarBev indebtedness. Headquartered in Prague, this business is one of the largest brewers in Central Europe. The operating results of Central Europe are reported in our Europe segment and our MCI segment as further described in Note 4, "Segment Reporting." We incurred acquisition and integration costs of $1.8 million and $6.1 million in the first quarter of 2013 and 2012, respectively. We also incurred financing-related expenses as further described in Note 8, "Other Income and Expense" and Note 12, "Debt."
Unaudited Pro Forma Financial Information
Central Europe contributed net sales of $141.4 million, of which $135.1 million is included in our Europe segment, and loss from continuing operations before income taxes of $11.0 million, of which $13.6 million is included in our Europe segment, for the first quarter of 2013. The incremental portion not included in our Europe segment results is our Central Europe export and license business reflected in our MCI segment results. The following unaudited pro forma summary presents our condensed consolidated statements of operations as if Central Europe had been acquired on December 26, 2010, the first day of our 2011 fiscal year. These amounts were calculated after conversion of StarBev's historical operating results to U.S. GAAP, conforming to our accounting policies, and adjusting StarBev's results to reflect the depreciation and amortization that would have been charged assuming the preliminary fair value adjustments to properties and other intangibles resulting from the purchase had it been applied from December 26, 2010, together with the consequential tax effects. These adjustments also reflect the removal of StarBev historical interest expense on debt that was repaid at the time of the Acquisition, the addition of interest expense to be prospectively incurred on the debt issued to finance the Acquisition and the removal of the previously mentioned acquisition-related costs of $6.1 million incurred in the first quarter of 2012. These adjustments do not reflect changes in fair value of the embedded conversion feature or foreign exchange movements of the convertible note issued to the Seller as part of the Acquisition. This unaudited pro forma financial information is not intended to reflect the performance which would have actually resulted had the Acquisition been effected on the dates indicated. Further, the unaudited pro forma results of operations are not necessarily indicative of the results of operations that may be obtained in the future.
 
Thirteen Weeks Ended
 
March 31, 2012
 
(In millions)
Net sales
$
830.8

Income from continuing operations before income taxes
$
68.5

Net income attributable to MCBC
$
58.5

Net income per common share attributable to MCBC:
 
         Basic
$
0.32

         Diluted
$
0.32


Allocation of Consideration Transferred
The following table represents the preliminary allocation of the total consideration to the identifiable net assets, fair value of the noncontrolling interest, and resulting residual goodwill as of June 15, 2012. These allocated amounts were updated for immaterial changes in the first quarter of 2013 and will be finalized in the second quarter of 2013. During the first quarter of 2013 we became aware of potential liabilities in several Central European countries primarily related to local country regulatory matters. As a result we have identified certain items primarily associated with pre-acquisition periods that could result in an adjustment to the preliminary purchase price allocation. However, we currently cannot reliably estimate or determine the probability related to the outcome of these matters and therefore have not reflected an adjustment to the opening balance sheet. Additionally, some of these items, if materialized, are subject to various claims with the previous owners of the Central Europe business.
 
Fair Value
 
(In millions)
Cash and cash equivalents
$
143.6

Current assets(1)
263.5

Properties
571.5

Other intangibles(2)
2,438.6

Other assets
36.7

Total assets acquired
$
3,453.9

Current liabilities(3)
848.8

Non-current liabilities(4)
428.8

Total liabilities assumed
$
1,277.6

Total identifiable net assets
$
2,176.3

Noncontrolling interest measured at fair value
40.6

Goodwill(5)
911.2

Total consideration
$
3,046.9

(1)
Includes trade receivables of $167.5 million and inventory of $57.3 million.
(2)
See Note 11, "Goodwill and Intangible Assets" for further discussion.
(3)
Includes the $423.4 million subordinated deferred payment obligation assumed, which was subsequently repaid for $425.7 million on June 29, 2012.
(4)
Includes $408.7 million of deferred tax liabilities.
(5)
The goodwill resulting from the Acquisition is primarily attributable to Central Europe's licensed brand brewing, distribution and import business, anticipated synergies and the assembled workforce. We have preliminarily assigned the majority of the goodwill to our Europe reporting unit with a portion allocated to the Canada reporting unit resulting from synergies. The goodwill is not expected to be deductible for tax purposes. See Note 11, "Goodwill and Intangible Assets" for further discussion.
Segment Reporting
Segment Reporting
Segment Reporting
Our reporting segments are based on the key geographic regions in which we operate, which are the basis on which our chief operating decision maker evaluates the performance of the business. Our reporting segments consist of Canada, the U.S., Europe and MCI. Corporate is not a segment and includes interest and certain other general and administrative costs that are not allocated to any of the operating segments.
Effective for the first day of our 2013 fiscal year, we changed the way in which we monitor performance and manage our operations in Europe and as a result, we combined our U.K. and Ireland business with our Central Europe organization, which resulted in our Europe segment and we have recast the historical presentation of segment information accordingly.
No single customer accounted for more than 10% of our consolidated or segmented sales in the first quarters of 2013 or 2012. Net sales represent sales to third-party external customers. Inter-segment sales revenues other than sales to MillerCoors (see Note 5, "Investments" for additional detail) are insignificant and eliminated in consolidation.
Net sales and income from continuing operations before income taxes below for the thirteen weeks ended March 31, 2012, do not include results from our Central European operations reported within our Europe segment or the Central Europe export and license business reported within our MCI segment, as this business was not acquired until the second quarter of 2012.
The following table presents net sales by segment:
 
Thirteen Weeks Ended
 
March 30, 2013
 
March 31, 2012
 
(In millions)
Canada
$
395.6

 
$
402.3

Europe
406.4

 
263.4

MCI
27.0

 
28.1

Corporate
0.3

 
0.3

Eliminations(1)
(0.8
)
 
(2.7
)
         Consolidated
$
828.5

 
$
691.4


(1)
Represents inter-segment sales from the Europe segment to the MCI segment.
The following table presents income (loss) from continuing operations before income taxes by segment:
 
Thirteen Weeks Ended
 
March 30, 2013
 
March 31, 2012
 
(In millions)
Canada
$
36.4

 
$
43.9

U.S. 
117.4

 
118.9

Europe
(3.7
)
 
1.3

MCI
(6.1
)
 
(8.6
)
Corporate(1)
(102.6
)
 
(58.9
)
         Consolidated
$
41.4

 
$
96.6


(1)
The increase in the loss in Corporate in the first quarter of 2013 compared to the first quarter of 2012 is due to higher interest expense as a result of financing related to the Acquisition.
The following table presents total assets by segment:
 
As of
 
March 30, 2013
 
December 29, 2012
 
(In millions)
Canada
$
6,375.4

 
$
6,547.1

U.S. 
2,530.4

 
2,431.8

Europe
6,464.1

 
6,742.4

MCI
91.8

 
92.0

Corporate
481.0

 
398.9

         Consolidated
$
15,942.7

 
$
16,212.2

Investments
Investments
Investments
Our investments include both equity method and consolidated investments. Those entities identified as variable interest entities ("VIEs") have been evaluated to determine whether we are the primary beneficiary. The VIEs included under "Consolidated VIEs" below are those for which we have concluded that we are the primary beneficiary and accordingly, consolidate these entities. None of our consolidated VIEs held debt as of March 30, 2013, or December 29, 2012. We have not provided any financial support to any of our VIEs during the quarter that we were not previously contractually obligated to provide. Amounts due to and due from our equity method investments are recorded as affiliate accounts payable and affiliate accounts receivable.
Authoritative guidance related to the consolidation of VIEs requires that we continually reassess whether we are the primary beneficiary of VIEs in which we have an interest. As such, the conclusion regarding the primary beneficiary status is subject to change and we continually evaluate circumstances that could require consolidation or deconsolidation. As of March 30, 2013, and December 29, 2012, our consolidated VIEs are Cobra Beer Partnership, Ltd. ("Cobra U.K.") and Grolsch and our unconsolidated VIEs are Brewers' Retail Inc. ("BRI"), Brewers' Distributor Ltd. ("BDL") and Modelo Molson Imports, L.P. ("MMI"). Tradeteam is an equity method investment but is not considered a VIE.
Equity Investments
Investment in MillerCoors
Summarized financial information for MillerCoors is as follows:
Condensed Balance Sheets
 
As of
 
March 31, 2013
 
December 31, 2012
 
(In millions)
Current assets
$
1,026.9

 
$
841.4

Non-current assets
8,931.4

 
8,949.9

Total assets
$
9,958.3

 
$
9,791.3

Current liabilities
$
870.3

 
$
958.5

Non-current liabilities
1,522.5

 
1,537.5

Total liabilities
2,392.8

 
2,496.0

Noncontrolling interests
29.7

 
28.4

Owners' equity
7,535.8

 
7,266.9

Total liabilities and equity
$
9,958.3

 
$
9,791.3

The following represents our proportional share in MillerCoors' equity:
 
As of
 
March 31, 2013
 
December 31, 2012
 
(In millions, except percentages)
MillerCoors owners' equity
$
7,535.8

 
$
7,266.9

MCBC economic interest
42
%
 
42
%
MCBC proportionate share in MillerCoors' equity
3,165.0

 
3,052.1

Difference between MCBC contributed cost basis and proportional share of the underlying equity in net assets of MillerCoors(1)
(669.6
)
 
(670.8
)
Accounting policy elections
35.0

 
35.0

Timing differences of cash contributions and distributions as a result of different fiscal periods

 
15.5

Investment in MillerCoors
$
2,530.4

 
$
2,431.8

(1)
Our net investment in MillerCoors is based on the carrying values of the net assets contributed to the joint venture which is less than our proportional share of underlying equity (42%) of MillerCoors (contributed by both Coors Brewing Company ("CBC") and Miller Brewing Company ("Miller")). This basis difference, with the exception of certain non-amortizing items (goodwill, land, etc.) is being amortized as additional equity income over the remaining useful lives of the contributed long-lived amortizing assets.
Results of Operations
 
Three Months Ended
 
March 31, 2013
 
March 31, 2012
 
(In millions)
Net sales
$
1,788.3

 
$
1,759.8

Cost of goods sold
(1,088.7
)
 
(1,070.0
)
Gross profit
$
699.6

 
$
689.8

Operating income
$
274.5

 
$
279.0

Net income attributable to MillerCoors
$
271.9

 
$
275.3


The following represents our proportional share in net income attributable to MillerCoors reported under the equity method:
 
Thirteen Weeks Ended
 
March 30, 2013
 
March 31, 2012
 
(In millions, except percentages)
Net income attributable to MillerCoors
$
271.9

 
$
275.3

MCBC economic interest
42
%
 
42
%
MCBC proportionate share of MillerCoors net income
114.2

 
115.6

Amortization of the difference between MCBC contributed cost basis and proportional share of the underlying equity in net assets of MillerCoors
1.2

 
0.4

Share-based compensation adjustment(1)
2.0

 
2.9

Equity income in MillerCoors
$
117.4

 
$
118.9


(1)
The net adjustment is to eliminate all share-based compensation impacts related to pre-existing SABMiller plc equity awards held by former Miller employees now employed by MillerCoors.
The following table summarizes our transactions with MillerCoors:
 
Thirteen Weeks Ended
 
March 30, 2013
 
March 31, 2012
 
(In millions)
Beer sales to MillerCoors
$
4.4

 
$
4.9

Beer purchases from MillerCoors
$
3.1

 
$
2.3

Service agreement costs and other charges to MillerCoors
$
0.6

 
$
1.1

Service agreement costs and other charges from MillerCoors
$
0.2

 
$
0.2


As of March 30, 2013, and December 29, 2012, we had $0.4 million and $0.8 million of net payables due to MillerCoors, respectively.
Consolidated VIEs
The following summarizes the assets and liabilities of our consolidated VIEs (including noncontrolling interests):
 
As of
 
March 30, 2013
 
December 29, 2012
 
Total Assets
 
Total Liabilities
 
Total Assets
 
Total Liabilities
 
(In millions)
Grolsch
$
6.4

 
$
2.0

 
$
10.0

 
$
5.6

Cobra U.K.
$
32.5

 
$
2.4

 
$
33.2

 
$
3.3

Share-Based Payments
Share-Based Payments
Share-Based Payments
During the first quarters of 2013 and 2012, we recognized share-based compensation expense related to the following Class B common stock awards to certain directors, officers and other eligible employees, pursuant to the Molson Coors Brewing Company Incentive Compensation Plan ("Incentive Compensation Plan"): restricted stock units ("RSU"), deferred stock units ("DSU"), performance share units ("PSU"), performance units ("PU") and stock options. As part of our annual grant in the first quarter of 2013 we issued PSUs in place of PUs that had previously been granted in each of the past three years. The settlement amount of the PSUs is determined based on market and performance metrics, which include our total shareholder return performance relative to our peers and specified adjusted earnings per share, respectively. PSU compensation expense is based on a fair value assigned to the market metric using a Monte Carlo model, which will remain constant throughout the vesting period of three years, and a performance multiplier, which will vary due to changing estimates of adjusted earnings per share.
The following table summarizes share-based compensation expense:
 
Thirteen Weeks Ended
 
March 30, 2013
 
March 31, 2012
 
(In millions)
Pre-tax compensation expense
$
11.1

 
$
4.8

Tax benefit
(3.4
)
 
(1.5
)
After-tax compensation expense
$
7.7

 
$
3.3

The increase in expense during 2013 was primarily driven by accelerated expense related to certain RSUs and PSUs granted in the first quarter of 2013.
As of March 30, 2013, there was $29.0 million of total unrecognized compensation cost from all share-based compensation arrangements granted under the Incentive Compensation Plan, related to unvested shares. This compensation expense is expected to be recognized over a weighted-average period of approximately 1.7 years.
The following table represents the summary of stock options and stock-only stock appreciation rights ("SOSAR") outstanding as of March 30, 2013, and the activity during the first quarter of 2013:
 
Shares outstanding
 
Weighted-average
exercise price per
share
 
Weighted-average
remaining
contractual life
(years)
 
Aggregate
intrinsic value
 
(In millions, except per share amounts and years)
Outstanding as of December 29, 2012
6.0
 
$40.55
 
4.05
 
$
23.2

Granted
0.2
 
$45.22
 
 
 
 
Exercised
(0.7)
 
$34.68
 
 
 
 
Forfeited
 
$—
 
 
 
 
Outstanding as of March 30, 2013
5.5
 
$41.57
 
4.11
 
$
44.2

Exercisable at March 30, 2013
4.8
 
$41.24
 
3.52
 
$
41.0

The total intrinsic values of stock options exercised during the first quarter of 2013 and 2012 were $8.9 million and $9.4 million, respectively. During the first quarter of 2013 and 2012, cash received from stock option exercises was $27.2 million and $19.7 million, respectively, and the total tax benefit for the tax deductions from these stock option exercises and other awards was $1.6 million and $3.3 million, respectively.
The following table represents non-vested RSUs, DSUs, PSUs and PUs as of March 30, 2013, and the activity during the first quarter of 2013:
 
RSUs and DSUs
 
PUs
 
PSUs
 
Units
 
Weighted-average
grant date fair value
per unit
 
Units
 
Weighted-average
grant date fair value
per unit
 
Units
 
Weighted-average
grant date fair value
per unit
 
(In millions, except per unit amounts)
Non-vested as of December 29, 2012
0.7

 
$43.06
 
1.7

 
$10.90
 

 
$—
Granted
0.2

 
$41.42
 

 
$—
 
0.2

 
$43.10
Vested
(0.1
)
 
$43.13
 
(0.6
)
 
$11.64
 

 
$—
Forfeited
(0.1
)
 
$42.92
 
(0.1
)
 
$7.37
 

 
$—
Non-vested as of March 30, 2013
0.7

 
$42.64
 
1.0

 
$6.45
 
0.2

 
$43.10
The fair value of each option granted in the first quarter of 2013 and 2012 was determined on the date of grant using the Black-Scholes option-pricing model with the following weighted-average assumptions:
 
Thirteen Weeks Ended
 
March 30, 2013
 
March 31, 2012
Risk-free interest rate
1.43%
 
1.56%
Dividend yield
2.88%
 
2.98%
Volatility range
22.39%-25.90%
 
25.80%-27.56%
Weighted-average volatility
25.02%
 
25.84%
Expected term (years)
7.7
 
4.0-7.7
Weighted-average fair market value
$8.39
 
$8.18
The risk-free interest rates utilized for periods throughout the contractual life of the stock options are based on a zero-coupon U.S. Treasury security yield at the time of grant. Expected volatility is based on a combination of historical and implied volatility of our stock. The expected term of stock options is estimated based upon observations of historical employee option exercise patterns and trends. The range on the expected term in 2012 results from awards granted to separate groups of employees who exhibit different historical exercise behavior.
The fair value of the market metric for each PSU granted in the first quarter of 2013 was determined on the date of grant using a Monte Carlo model to simulate total shareholder return for MCBC and peer companies. This value was calculated at $43.10 using a term of 2.83 years as the time between grant date and the end of the performance period. Specific inputs into this valuation, derived using the specified term including a volatility of 21.13% for MCBC and between a range of 12% and 69% for our peers, a risk-free interest rate of 0.33% and a dividend yield of 2.88%.
As of March 30, 2013, there were 7.7 million shares of the Company's stock available for issuance as awards under the MCBC Incentive Compensation Plan.
Special items
Special Items
Special Items
We have incurred charges or recognized gains that we do not believe to be indicative of our core operations. As such, we have separately classified these amounts as special items. The table below summarizes special items recorded by segment:
 
Thirteen Weeks Ended
 
March 30, 2013
 
March 31, 2012
 
(In millions)
Employee related charges
 
 
 
Restructuring(1)
 
 
 
Canada
$
1.3

 
$
1.6

Europe
3.3

 
1.8

Corporate
0.3

 
1.1

Special termination benefits
 
 
 
Canada(2)
0.8

 
0.5

Unusual or infrequent items
 
 
 
Europe - Release of non-income-related tax reserve(3)
(4.2
)
 
(3.5
)
Total Special items, net
$
1.5

 
$
1.5

(1)
During 2013 and 2012, we recognized expenses associated with restructuring programs focused on labor savings and organizational effectiveness across all functions. As a result, we have reduced headcount by approximately 660 employees since the start of 2012.
(2)
During the first quarters of 2013 and 2012, we recognized charges related to special termination benefits as eligible employees elected early retirement offered as a result of the ratification of Collective Bargaining Agreements with MCC's brewery groups.
(3)
During 2009, we established a non-income-related tax reserve of $10.4 million that was recorded as a special item. Our estimates indicated a range of possible loss relative to this reserve of zero to $22.3 million, inclusive of potential penalties and interest. The amounts recorded in 2013 and 2012 represent the release of this reserve as a result of a change in estimate. As a result, this non-income-related tax reserve is fully released as of March 30, 2013.
The table below summarizes the activity in the restructuring accruals by segment:
 
Canada
 
Europe
 
MCI
 
Corporate
 
Total
 
(In millions)
Total at December 29, 2012
$
7.1

 
$
13.4

 
$
2.8

 
$
1.5

 
$
24.8

Charges incurred
1.3

 
3.3

 

 
0.3

 
4.9

Payments made
(2.9
)
 
(2.6
)
 
(1.7
)
 
(0.3
)
 
(7.5
)
Foreign currency and other adjustments
(0.2
)
 
(0.4
)
 

 

 
(0.6
)
Total at March 30, 2013
$
5.3

 
$
13.7

 
$
1.1

 
$
1.5

 
$
21.6



Other Income and Expense
Other Income and Expense
Other Income and Expense
The table below summarizes other income and expense:
 
Thirteen Weeks Ended
 
March 30, 2013
 
March 31, 2012
 
(In millions)
Gain on sale of non-operating asset(1)
$
1.2

 
$

Gain (loss) from other foreign exchange and derivative activity(2)
2.7

 
(1.7
)
Other, net
0.4

 
0.3

Other income (expense), net
$
4.3

 
$
(1.4
)

(1)
Gain realized for proceeds received related to a non-income-related tax settlement resulting from historical activity within our former investment in the Montreal Canadiens.
(2)
Included in this amount is an unrealized gain of $20.1 million for the first quarter of 2013 related to foreign currency movements on foreign-denominated financing instruments entered into in conjunction with the closing of the Acquisition. This is offset by an unrealized loss of $10.6 million related to foreign exchange contracts to hedge our risk associated with payments of this foreign-denominated debt. See Note 12, "Debt" and Note 14, "Derivative Instruments and Hedging Activities" for further discussion of financing activities related to the Acquisition. Additionally, we recorded losses of $6.8 million and $1.7 million for the first quarters of 2013 and 2012, respectively, related to other foreign exchange and derivative activity.
Income Tax
Income Tax
Income Tax
Our effective tax rates for the first quarters of 2013 and 2012 were approximately 8% and 18%, respectively. The first quarter 2013 tax rate decreased versus 2012 largely due to the release of a valuation allowance as a result of a capital gain generated in the first quarter of 2013. This created a discrete tax benefit in the quarter. 
Our tax rate is volatile and may move up or down with changes in, among other things, the amount and source of income or loss, our ability to utilize foreign tax credits, changes in tax laws, and the movement of liabilities established for uncertain tax positions as statutes of limitations expire or positions are otherwise effectively settled. There are proposed or pending tax law changes in various jurisdictions that, if enacted, may have an impact on our effective tax rate.
As of March 30, 2013, and December 29, 2012, we had unrecognized tax benefits including interest, penalties and offsetting positions of $82.1 million. The allocation of this balance between current and noncurrent has not changed materially since December 29, 2012.
Earnings per Share ("EPS")
Earnings per Share ("EPS")
Earnings Per Share
Basic net income per share was computed using the weighted-average number of shares of common stock outstanding during the period. Diluted net income per share includes the additional dilutive effect of our potentially dilutive securities, which include stock options, SOSARs, RSUs, PSUs, PUs, and DSUs. The dilutive effects of our potentially dilutive securities are calculated using the treasury stock method. Diluted income per share could also be impacted by our convertible debt and related warrants outstanding to the extent dilutive. The following summarizes the effect of dilutive securities on diluted EPS:
 
Thirteen Weeks Ended
 
March 30, 2013
 
March 31, 2012
 
(In millions, except per share amounts)
Amounts attributable to MCBC
 
 
 
Net income (loss) from continuing operations
$
36.5

 
$
79.4

Income (loss) from discontinued operations, net of tax
(0.9
)
 
0.1

Net income (loss) attributable to MCBC
$
35.6

 
$
79.5

Weighted-average shares for basic EPS
181.7

 
180.3

Effect of dilutive securities:
 
 
 
Stock options and SOSARs
0.7

 
0.8

RSUs, PSUs, PUs and DSUs
0.5

 
0.6

Weighted-average shares for diluted EPS
182.9

 
181.7

Basic net income (loss) per share:
 
 
 
Continuing operations attributable to MCBC
$
0.20

 
$
0.44

Discontinued operations attributable to MCBC

 

Basic net income (loss) attributable to MCBC
$
0.20

 
$
0.44

Diluted net income (loss) per share:
 
 
 
Continuing operations attributable to MCBC
$
0.20

 
$
0.44

Discontinued operations attributable to MCBC

 

Diluted net income (loss) attributable to MCBC
$
0.20

 
$
0.44

Dividends declared and paid per share
$
0.32

 
$
0.32


The following anti-dilutive securities were excluded from the computation of the effect of dilutive securities on diluted earnings per share:
 
Thirteen Weeks Ended
 
March 30, 2013
 
March 31, 2012
 
(In millions)
Stock options, SOSARs and RSUs
0.2

 
0.8

Shares of Class B common stock issuable upon assumed conversion of the 2.5% Convertible Senior Notes(1)
11.0

 
10.9

Warrants to issue shares of Class B common stock(1)
11.0

 
10.9

Shares of Class B common stock issuable upon assumed conversion of the €500 million Convertible Note(2)
0.2

 

Total anti-dilutive securities
22.4

 
22.6


(1)
In June 2007, we issued $575 million of senior convertible notes due July 2013. The impact of a net share settlement of the conversion amount at maturity will begin to dilute earnings per share if and when our stock price reaches $52.18. The impact of stock that could be issued to settle share obligations we could have under the warrants we issued simultaneously with the senior convertible notes issuance will begin to dilute earnings per share when our stock price reaches $66.79. The potential receipt of our stock from counterparties under our purchased call options when and if our stock price is between $52.18 and $66.79 would be anti-dilutive and excluded from any calculations of earnings per share.
(2)
Upon closing of the Acquisition in June 2012, we issued a €500 million Zero Coupon Senior Unsecured Convertible Note due 2013 to the Seller. The impact of a net share settlement of the conversion amount at maturity will begin to dilute earnings per share if and when our stock price reaches $49.71 based on foreign exchange rates at March 30, 2013. See further discussion in Note 12, "Debt."
Goodwill and Intangible Assets
Goodwill and Intangible Assets
Goodwill and Intangible Assets
The following summarizes the change in goodwill for the first quarter of 2013:
 
Canada
 
Europe
 
MCI
 
Consolidated
 
(In millions)
Balance at December 29, 2012
$
764.0

 
$
1,680.9

 
$
8.2

 
$
2,453.1

Foreign currency translation
(14.0
)
 
(73.1
)
 

 
(87.1
)
Purchase price adjustment

 
(0.3
)
 

 
(0.3
)
Balance at March 30, 2013
$
750.0

 
$
1,607.5

 
$
8.2

 
$
2,365.7


The following table presents details of our intangible assets, other than goodwill, as of March 30, 2013:
 
Useful life
 
Gross
 
Accumulated
amortization
 
Net
 
(Years)
 
(In millions)
Intangible assets subject to amortization:
 
 
 
 
 
 
 
Brands
 3 - 40
 
$
464.1

 
$
(204.0
)
 
$
260.1

Distribution rights
 2 - 23
 
342.5

 
(252.7
)
 
89.8

Patents and technology and distribution channels
 3 - 10
 
33.2

 
(29.4
)
 
3.8

Favorable contracts, land use rights and other
 2 - 42
 
12.2

 
(6.3
)
 
5.9

Intangible assets not subject to amortization:
 
 
 
 
 
 
 
Brands
 Indefinite
 
5,659.0

 

 
5,659.0

Distribution networks
 Indefinite
 
994.3

 

 
994.3

Other
 Indefinite
 
15.4

 

 
15.4

Total
 
 
$
7,520.7

 
$
(492.4
)
 
$
7,028.3



The following table presents details of our intangible assets, other than goodwill, as of December 29, 2012:
 
Useful life
 
Gross
 
Accumulated
amortization
 
Net
 
(Years)
 
(In millions)
Intangible assets subject to amortization:
 
 
 
 
 
 
 
Brands
3 - 40
 
$
480.6

 
$
(205.7
)
 
$
274.9

Distribution rights
2 - 23
 
350.8

 
(255.0
)
 
95.8

Patents and technology and distribution channels
3 - 10
 
35.3

 
(31.1
)
 
4.2

Favorable contracts, land use rights and other
2 - 42
 
13.6

 
(5.4
)
 
8.2

Intangible assets not subject to amortization:
 
 
 
 
 
 
 
Brands
Indefinite
 
5,821.6

 

 
5,821.6

Distribution networks
Indefinite
 
1,014.7

 

 
1,014.7

Other
Indefinite
 
15.4

 

 
15.4

Total
 
 
$
7,732.0

 
$
(497.2
)
 
$
7,234.8

The changes in the gross carrying amounts of intangibles from December 29, 2012, to March 30, 2013, are primarily driven by the impact of foreign exchange rates, as a significant amount of intangibles are denominated in foreign currencies.
The balances as of March 30, 2013, and December 29, 2012, include the preliminary fair values, using a foreign exchange rate at the date of Acquisition, of $145.6 million for brand intangibles with a 30 year useful life, $2,281.0 million for brand intangibles with an indefinite-life and a preliminary fair value of a favorable supply contract and other intangibles of $12.0 million with a 1.5 year useful life as a result of the Acquisition. See Note 3, "Acquisition of StarBev" for total allocation of consideration.
Based on foreign exchange rates as of March 30, 2013, the estimated future amortization expense of intangible assets is as follows:
Fiscal year
Amount
 
(In millions)
2013 - remaining
$
34.9

2014
$
38.7

2015
$
36.2

2016
$
36.2

2017
$
22.3


Amortization expense of intangible assets was $11.9 million and $9.3 million for the first quarters of 2013 and 2012, respectively, and is presented within marketing, general and administrative expenses.
We completed the required annual impairment testing as of July 1, 2012, the first day of our fiscal third quarter, and concluded there were no impairments of goodwill or other indefinite-lived intangible assets. Given the timing of our Acquisition, the Central Europe reporting unit and the associated indefinite-lived intangibles were not part of our annual impairment testing as we relied upon the fair value as of the Acquisition date and performed a qualitative assessment to ensure no significant changes between the Acquisition and July 1, 2012. Given the change in our operating segments effective the first day of our fiscal year 2013 to combine our U.K. and Ireland business with our Central Europe organization, which resulted in a single European segment, we re-evaluated our reporting units during the first quarter of 2013. This re-evaluation resulted in an aggregation of our U.K. and Central Europe businesses into one Europe reporting unit. As part of this re-evaluation, we also determined that a goodwill impairment trigger did not exist at either of the previous U.K. or Central Europe reporting unit levels prior to or upon aggregation. The discussion below focuses on results of our 2012 annual impairment testing of goodwill, which references our historical U.K. and Central Europe reporting units. Effective for our 2013 annual impairment testing of goodwill to occur during the third quarter of 2013, we will perform testing at the Europe reporting unit level.
Through our annual impairment testing of goodwill performed in the third quarter of 2012, we determined that the fair value of our U.K. and Canada reporting units were close to failing step one of the goodwill impairment test. The fair value of the U.K. reporting unit was estimated at approximately 7% in excess of its carrying value (of which $818.1 million is goodwill as of March 30, 2013) and the fair value of the Canada reporting unit was estimated at approximately 15% in excess of its carrying value (of which $750.0 million is goodwill as of March 30, 2013). The reporting units are therefore at risk of a future impairment in the event of significant unfavorable changes in the forecasted cash flows, terminal growth rates, market transaction multiples and/or weighted-average cost of capital utilized in the discounted cash flow analysis. For testing purposes, management's best estimates of the expected future results are the primary driver in determining the fair value. Current projections reflect challenging environments that have been adversely impacted by a weak economy across all industries, partially offset by anticipated cost savings and specific brand-building and innovation activities. Through our annual impairment testing of indefinite-lived intangibles, it was determined that the fair value of our Molson core brands were close to failing step one of the impairment test, with the fair value of the Molson core brands estimated at approximately 14% in excess of its carrying value (of which $3,002.3 million is indefinite-lived intangibles as of March 30, 2013). The Molson core brands face similar risks and challenges as the Canada reporting unit, as described above. Additionally, our annual impairment testing of indefinite-lived intangibles indicated that the Carling brand in the U.K. (of which $304.6 million is indefinite-lived intangible as of March 30, 2013) continued to have a fair value significantly in excess of its carrying value.
As of March 30, 2013, we had $789.4 million of goodwill and $2,332.1 million of indefinite-lived intangibles, primarily related to brands, associated with Central Europe. Since the Acquisition, our Central Europe business, along with other European corporations across all industries, has been adversely impacted by the weak economy in Europe. If this continues, a future impairment charge may be required.
Fair value determinations require considerable judgment and are sensitive to changes in underlying assumptions and factors. As a result, there can be no assurance that the estimates and assumptions made for purposes of the annual goodwill impairment test will prove to be an accurate prediction of the future. Examples of events or circumstances that could reasonably be expected to negatively affect the underlying key assumptions and ultimately impact the estimated fair value of our Europe and Canada reporting units and Molson core and European brands may include such items as: (i) a decrease in expected future cash flows, specifically, an increase in required pension contributions, a decrease in sales volume, unfavorable working capital changes and an inability to successfully achieve our cost savings targets, (ii) an economic recovery that significantly differs from our assumptions in timing and/or degree, (iii) volatility in the equity and debt markets which could result in a higher discount rate; and (iv) sensitivity to market transaction multiples.
While historical performance and current expectations have resulted in fair values of our reporting units in excess of carrying values, if our assumptions are not realized, it is possible that an impairment charge may need to be recorded in the future.
Regarding definite-lived intangibles, we continuously monitor the performance of the underlying asset for potential triggering events suggesting an impairment review should be performed. No such triggering events were identified in the first quarter of 2013. However, recent litigation related to the licensing agreement with Miller in Canada, for which we have a definite-lived intangible asset with a carrying value of $66.4 million as of March 30, 2013, could result in a possible future impairment. See Note 16, "Commitments and Contingencies" for further discussion.
Debt
Debt
Debt
Debt obligations
Our total borrowings as of March 30, 2013, and December 29, 2012, were composed of the following:
 
As of
 
March 30, 2013
 
December 29, 2012
 
(In millions)
Senior notes:
 
 
 
$575 million 2.5% convertible notes due 2013(1)
$
575.0

 
$
575.0

€500 million 0.0% convertible note due 2013(2)
678.3

 
668.7

Canadian Dollar ("CAD") 900 million 5.0% notes due 2015
884.6

 
902.7

CAD 500 million 3.95% Series A notes due 2017
491.5

 
501.5

$300 million 2.0% notes due 2017
300.0

 
300.0

$500 million 3.5% notes due 2022
500.0

 
500.0

$1.1 billion 5.0% notes due 2042
1,100.0

 
1,100.0

€120 million term loan due 2016
120.1

 
123.9

Other long-term debt
0.4

 
0.5

Commercial Paper(3)

 

Credit facilities(3)

 

Less: unamortized debt discounts and other
(12.0
)
 
(17.4
)
Total long-term debt (including current portion)
4,637.9

 
4,654.9

Less: current portion of long-term debt
(1,247.1
)
 
(1,232.4
)
Total long-term debt
$
3,390.8

 
$
3,422.5

 
 
 
 
Short-term borrowings
$
13.3

 
$
13.2

Current portion of long-term debt
1,247.1

 
1,232.4

Current portion of long-term debt and short-term borrowings
$
1,260.4

 
$
1,245.6


(1)
The original conversion price for each $1,000 aggregate principal amount of notes was $54.76 per share of our Class B common stock, which represented a 25% premium above the stock price on the day of issuance of the notes and corresponded to the initial conversion ratio of 18.263 shares per each $1,000 aggregate principal amount of notes. The conversion ratio and conversion price are subject to adjustments for certain events and provisions, as defined in the indenture, including adjustments reflected for exceeding defined thresholds related to our dividend payments. As of November 2012, our conversion price and ratio are $52.18 and 19.1662 shares, respectively. As of March 30, 2013, the convertible debt's if-converted value does not exceed the principal.
During the first quarters of 2013 and 2012, we incurred additional non-cash interest expense of $4.6 million and $4.5 million, respectively. We also incurred interest expense related to the 2.5% convertible coupon rate of $3.6 million and $3.7 million during the first quarters of 2013 and 2012, respectively. The combination of non-cash and cash interest resulted in an effective interest rate of 5.8% and 5.9% for the first quarters of 2013 and 2012, respectively. As of March 30, 2013, and December 29, 2012, $6.2 million and $10.8 million, respectively, of the unamortized debt discount and other balance relates to our $575 million convertible debt. We expect to record additional non-cash interest expense of $6.2 million during the remainder of 2013, thereby increasing the carrying value of the convertible debt to its $575 million face value at maturity in July 2013. As the notes mature in July 2013, the carrying value at March 30, 2013, is included within the current portion of long-term debt.
(2)
On June 15, 2012, we issued a €500 million Zero Coupon Senior Unsecured Convertible Note due 2013 (the ''Convertible Note'') to the Seller in conjunction with the closing of the Acquisition. The Convertible Note matures on December 31, 2013, and is a senior unsecured obligation guaranteed by MCBC. The Seller has the ability to exercise a put right with respect to the Convertible Note as of March 14, 2013, (the “First Redemption Date”) and ending on December 19, 2013, for the greater of the principal amount of the Convertible Note or the aggregate cash value of 12,894,044 shares of our Class B Common Stock, as adjusted for certain corporate events. The Convertible Note's embedded conversion feature was determined to meet the definition of a derivative required to be bifurcated and separately accounted for at fair value with changes in fair value recorded in earnings. At issuance, we recorded a liability of $15.2 million related to the conversion feature. The Convertible Note was issued at a discount of $1.3 million, which has been recognized as interest expense over the period from issuance to the First Redemption Date. As of March 30, 2013, the carrying value of the Convertible Note is included within the current portion of long-term debt.
The carrying value of the Convertible Note and fair value of the conversion feature at March 30, 2013, were $640.9 million and $37.4 million, respectively. We recognized an unrealized loss of $29.5 million during the first quarter of 2013 related to changes in the fair value of the conversion feature. The non-cash interest, excluding the change in fair value of the convertible feature, resulted in an effective interest rate of 0.25% for the first quarter of 2013. See Note 14, "Derivative Instruments and Hedging Activities" for further discussion of the conversion feature.
(3)
In the first quarter of 2013, a $950 million commercial paper program was approved and implemented. The commercial paper program is supported by our $550 million and $400 million revolving credit facilities. As of March 30, 2013, there were no outstanding borrowings under the commercial paper program.
In the third quarter of 2012, we entered into a revolving credit agreement ("Euro Credit Agreement") to support our operations in Central Europe within our Europe segment. The Euro Credit Agreement provides for a 1-year revolving credit facility of €150 million on an uncommitted basis.
In the second quarter of 2012, we entered into a revolving credit agreement (the ''Credit Agreement''). The Credit Agreement provides for a 4-year revolving credit facility of $550 million. The Credit Agreement contains customary events of default and specified representations and warranties and covenants, including, among other things, covenants that limit our subsidiaries' ability to incur certain additional priority indebtedness, create or permit liens on assets, or engage in mergers or consolidations.
In the second quarter of 2011, 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.
There were no outstanding borrowings on any of our credit facilities as of March 30, 2013.
Debt Fair Value Measurements
We utilize market approaches to estimate the fair value of certain outstanding borrowings by discounting anticipated future cash flows derived from the contractual terms of the obligations and observable market interest and foreign exchange rates. As of March 30, 2013, and December 29, 2012, the fair value of our outstanding long-term debt (including current portion) was $4,945.2 million and $4,993.0 million, respectively. Our €120 million term loan and all senior notes are valued based on significant observable inputs and would be classified as Level 2 in the fair value hierarchy. The fair value measurement of the conversion feature embedded in the Convertible Note includes significant unobservable inputs and is classified as Level 3 in the fair value hierarchy. See Note 14, "Derivative Instruments and Hedging Activities" for further discussion regarding the fair value of the conversion feature related to the Convertible Note. The carrying values of all other outstanding long-term borrowings and our short-term borrowings approximate their fair values.
Other
Under the terms of each of our debt facilities, we must comply with certain restrictions. These include restrictions on priority indebtedness (certain threshold percentages of secured consolidated net tangible assets), leverage thresholds, liens, and restrictions on certain types of sale lease-back transactions and transfers of assets. As of March 30, 2013, and December 29, 2012, we were in compliance with all of these restrictions and have met all debt payment obligations.
Derivative Instruments and Hedging Activities
Derivative Instruments and Hedging Activities
Derivative Instruments and Hedging Activities
Our risk management and derivative accounting policies are presented in Notes 1 and 18 of the Notes included in our Annual Report and did not significantly change during the first quarter of 2013. As noted in Note 18 of the Notes included in our Annual Report, due to the nature of our counterparty agreements, and that we are not subject to master netting arrangements, we are not able to net positions with the same counterparty and therefore present our derivative positions gross in our condensed consolidated balance sheets. Our significant derivative/hedge positions have not changed significantly since year-end, except as noted below.
Significant Derivative/Hedge Positions
Derivative Activity Related to the Acquisition
In the first quarter of 2013, we began executing a series of financial foreign exchange forward contracts to hedge our risk associated with payments of our Euro-denominated Convertible Note issued to the Seller simultaneous with the closing of the Acquisition in June 2012. These contracts are not designated in hedge accounting relationships. As such, changes in fair value of these swaps are recorded in other income (expense) in our condensed consolidated statement of operations.
Derivative Fair Value Measurements
We utilize market approaches to estimate the fair value of our derivative instruments by discounting anticipated future cash flows derived from the derivative's contractual terms and observable market interest, foreign exchange and commodity rates. The fair values of our derivatives also include credit risk adjustments to account for our counterparties' credit risk, as well as our own non-performance risk. The table below summarizes our derivative assets and liabilities that were measured at fair value as of March 30, 2013, and December 29, 2012.
 
 
 
Fair value measurements as of March 30, 2013
 
Total at March 30, 2013
 
Quoted prices in
active markets
(Level 1)
 
Significant other
observable inputs
(Level 2)
 
Significant
unobservable
inputs (Level 3)
 
(In millions)
Cross currency swaps
$
(206.2
)
 
$

 
$
(206.2
)
 
$

Foreign currency forwards
(4.0
)
 

 
(4.0
)
 

Commodity swaps
(1.4
)
 

 
(1.4
)
 

Equity conversion feature of debt
(37.4
)
 

 

 
(37.4
)
Total
$
(249.0
)
 
$

 
$
(211.6
)
 
$
(37.4
)
 
 
 
 
Fair value measurements as of December 29, 2012
 
Total at December 29, 2012
 
Quoted prices in
active markets
(Level 1)
 
Significant other
observable inputs
(Level 2)
 
Significant
unobservable
inputs (Level 3)
 
(In millions)
Cross currency swaps
$
(220.4
)
 
$

 
$
(220.4
)
 
$

Foreign currency forwards
(1.7
)
 

 
(1.7
)
 

Commodity swaps
(2.5
)
 

 
(2.5
)
 

Equity conversion feature of debt
(7.9
)
 

 

 
(7.9
)
Total
$
(232.5
)
 
$

 
$
(224.6
)
 
$
(7.9
)


The following tables present additional information about Level 3 assets and liabilities measured at fair value on a recurring basis for the quarter ended March 30, 2013. Both observable and unobservable inputs may be used to determine the fair value of positions that we have classified within the Level 3 category. As a result, the unrealized gains (losses) during the period for assets and liabilities within the Level 3 category presented in the tables below may include changes in fair value during the period that were attributable to both observable (e.g., changes in market interest rates) and unobservable (e.g., changes in unobservable long-dated volatilities) inputs.
The table below summarizes derivative valuation activity using significant unobservable inputs (Level 3) (in millions):
 
Rollforward of Level 3 Inputs
Total at December 29, 2012
$
(7.9
)
Total losses (realized/unrealized)
 
Included in earnings
(29.5
)
Included in other comprehensive income

Purchases

Sales

Issuances

Settlements

Net transfers in/out of Level 3

Total at March 30, 2013
$
(37.4
)
Unrealized losses for Level 3 assets/liabilities outstanding at March 30, 2013
$
(29.5
)

    
We had no significant transfers between Level 1 and 2 during the first quarter of 2013. As of March 30, 2013, and December 29, 2012, the conversion feature related to the Convertible Note was classified as a Level 3 derivative due to valuations based upon significant unobservable inputs. New derivative contracts transacted during the first quarter 2013 were all included in Level 2.
Quantitative information regarding significant unobservable inputs used for recurring Level 3 fair value measurements of financial instruments carried at fair value, were as follows (in millions):
 
Balance at March 30, 2013
Valuation Technique
Significant Unobservable Input(s)/Sensitivity of the Fair Value to Changes in the Unobservable Inputs
Range
Equity conversion feature of debt
$
(37.4
)
Option model
Implied volatility(1)
21-25%
(1)
Significant increase (decrease) in the unobservable input in isolation would result in a significantly higher (lower) fair value measurement.
Results of Period Derivative Activity
The tables below include the year to date results of our derivative activity in the condensed consolidated balance sheets as of March 30, 2013, and December 29, 2012, and the condensed consolidated statements of operations for the first quarters ended March 30, 2013, and March 31, 2012.
Fair Value of Derivative Instruments in the Condensed Consolidated Balance Sheet (in millions, except for certain commodity swaps with notional amounts measured in Metric Tonnes, as noted)
 
March 30, 2013
 
 
 
 
Asset derivatives
 
Liability derivatives
 
Notional amount
 
Balance sheet location
 
Fair value
 
Balance sheet location
 
Fair value
Derivatives designated as hedging instruments:
 
 
 
 
 
 
 
 
Cross currency swaps
CAD
601.3

 
Other non-current assets
 
$

 
Non-current derivative hedging instruments
 
$
(206.2
)
Foreign currency forwards
USD
453.2

 
Other current assets
 
4.7

 
Current derivative hedging instruments
 
(1.1
)
 
 
 
 
Other non-current assets
 
3.2

 
Non-current derivative hedging instruments
 
(0.2
)
Commodity swaps
kWh
485.9

 
Other current assets
 
0.3

 
Current derivative hedging instruments
 
(0.4
)
 
 
 
 
Other non-current assets
 
0.1

 
Non-current derivative hedging instruments
 
(0.1
)
Total derivatives designated as hedging instruments
 
 
 
 
$
8.3

 
 
 
$
(208.0
)
Derivatives not designated as hedging instruments:
 
 
 
 
 
 
 
 
Equity conversion feature of debt
EUR
500.0

 
 
 
 
 
Current portion of long-term debt and short-term borrowings
 
$
(37.4
)
Aluminum swaps
Metric tonnes (actual)
2,075

 
Other current assets
 

 
Current derivative hedging instruments
 
(1.4
)
Diesel swaps
Metric tonnes (actual)
3,977

 
Other current assets
 
0.1

 
Current derivative hedging instruments
 

Foreign currency forwards
EUR
244.0

 
Other current assets
 

 
Current derivative hedging instruments
 
(10.6
)
Total derivatives not designated as hedging instruments
 
 
 
 
$
0.1

 
 
 
$
(49.4
)
Non-derivative financial instruments in net investment hedge relationships:
 
 
 
 
 
 
€120 million term loan due 2016
EUR
93.7

 
 
 
 
 
Long-term debt
 
$
(120.1
)
Total non-derivative financial instruments in net investment hedge relationships
 
 
 
 
 
 
$
(120.1
)

 
December 29, 2012
 
 
 
 
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
601.3
 
Other non-current assets
 
$

 
Non-current derivative hedging instruments
 
$
(220.4
)
Foreign currency forwards
USD
507.3
 
Other current assets
 
2.0

 
Current derivative hedging instruments
 
(3.4
)
 
 
 
 
Other non-current assets
 
1.4

 
Non-current derivative hedging instruments
 
(1.7
)
Commodity swaps
kWh
486.1
 
Other current assets
 

 
Current derivative hedging instruments
 
(1.0
)
 
 
 
 
Other non-current assets
 
0.2

 
Non-current derivative hedging instruments
 
(0.1
)
Total derivatives designated as hedging instruments
 
 
 
 
$
3.6

 
 
 
$
(226.6
)
Derivatives not designated as hedging instruments:
 
 
 
 
 
 
 
 
Equity conversion feature of debt
EUR
500.0

 
 
 
 
 
Current portion of long-term debt and short-term borrowings
 
$
(7.9
)
Aluminum swaps
Metric tonnes (actual)
2,850

 
Other current assets
 
$

 
Current derivative hedging instruments
 
(1.4
)
Diesel swaps
Metric tonnes (actual)
5,493

 
Other current assets
 

 
Current derivative hedging instruments
 
(0.2
)
Total derivatives not designated as hedging instruments
 
 
 
 
$

 
 
 
$
(9.5
)
Non-derivative financial instruments in net investment hedge relationships:
 
 
 
 
 
 
€120 million term loan due 2016
EUR
93.7

 
 
 
 
 
Long-term debt
 
$
(123.9
)
Total non-derivative financial instruments in net investment hedge relationships
 
 
 
 
 
 
$
(123.9
)
MCBC allocates the current and non-current portion of each contract to the corresponding derivative account above.
The Effect of Derivative Instruments on the Condensed Consolidated Statement of Operations (in millions)
For the Thirteen Weeks Ended March 30, 2013
Derivatives in cash flow hedge relationships
 
Amount of gain
(loss) recognized
in OCI on
derivative
(effective
portion)
 
Location of gain (loss)
reclassified from AOCI into
income (effective portion)
 
Amount of gain
(loss) recognized
from AOCI on
derivative
(effective portion)
 
Location of gain (loss)
recognized in income on
derivative (ineffective portion
and amount excluded from
effectiveness testing)
 
Amount of gain (loss)
recognized in income
on derivative
(ineffective portion and
amount excluded from
effectiveness testing)
Forward starting interest rate swaps
 
$

 
Interest expense, net
 
$
(0.4
)
 
Interest expense, net
 
$

Foreign currency forwards
 
8.9

 
Other income (expense), net
 
(0.1
)
 
Other income (expense), net
 

 
 
 

 
Cost of goods sold
 
0.5

 
Cost of goods sold
 

Commodity swaps
 
0.6

 
Cost of goods sold
 
(0.2
)
 
Cost of goods sold
 

Total
 
$
9.5

 
 
 
$
(0.2
)
 
 
 
$


For the Thirteen Weeks Ended March 30, 2013
Derivatives and non-derivative financial instruments in net investment hedge relationships
 
Amount of gain
(loss) recognized in
OCI (effective portion)
 
Location of gain (loss)
reclassified from AOCI into
income (effective portion)
 
Amount of gain
(loss) recognized
from AOCI
(effective portion)
 
Location of gain (loss)
recognized in income
(ineffective portion
and amount excluded from
effectiveness testing)
 
Amount of gain (loss)
recognized in income
(ineffective portion and
amount excluded from
effectiveness testing)
Cross currency contracts
 
$
14.2

 
Other income (expense), net
 
$

 
Other income (expense), net
 
$

€120 million term loan due 2016
 
3.7

 
Other income (expense), net
 

 
Other income (expense), net
 

Total
 
$
17.9

 
 
 
$

 
 
 
$

Note: Amounts recognized in AOCI related to cash flow and net investment hedges are presented gross of taxes
During the period we recorded no significant ineffectiveness related to these cash flow and net investment hedges.
For the Thirteen Weeks Ended March 31, 2012
Derivatives in cash flow hedge relationships
 
Amount of gain
(loss) recognized
in OCI on
derivative
(effective
portion)
 
Location of gain (loss)
reclassified from AOCI into
income (effective portion)
 
Amount of gain
(loss) recognized
from AOCI on
derivative
(effective portion)
 
Location of gain (loss)
recognized in income on
derivative (ineffective portion
and amount excluded from
effectiveness testing)
 
Amount of gain (loss)
recognized in income
on derivative
(ineffective portion and
amount excluded from
effectiveness testing)
Forward starting interest rate swaps
 
$

 
Interest expense, net
 
$
(0.4
)
 
Interest expense, net
 
$

Foreign currency forwards
 
(8.0
)
 
Other income (expense), net
 
(0.6
)
 
Other income (expense), net
 

 
 
 

 
Cost of goods sold
 
(1.1
)
 
Cost of goods sold
 

Commodity swaps
 
1.3

 
Cost of goods sold
 
(0.3
)
 
Cost of goods sold
 

Total
 
$
(6.7
)
 
 
 
$
(2.4
)
 
 
 
$

For the Thirteen Weeks Ended March 31, 2012
Derivatives and non-derivative financial instruments in net investment hedge relationships
 
Amount of gain
(loss) recognized in
OCI (effective portion)
 
Location of gain (loss)
reclassified from AOCI into
income (effective portion)
 
Amount of gain
(loss) recognized
from AOCI
(effective portion)
 
Location of gain (loss)
recognized in income
(ineffective portion
and amount excluded from
effectiveness testing)
 
Amount of gain (loss)
recognized in income
(ineffective portion and
amount excluded from
effectiveness testing)
Cross currency contracts
 
$
(20.5
)
 
Other income (expense), net
 
$

 
Other income (expense), net
 
$

Total
 
$
(20.5
)
 
 
 
$

 
 
 
$

Note: Amounts recognized in AOCI are presented gross of taxes
During the period we recorded no significant ineffectiveness related to these cash flow hedges.
We expect net gains of approximately $3.9 million (pre-tax) recorded in AOCI at March 30, 2013, will be reclassified into earnings within the next 12 months. The maximum length of time over which forecasted transactions are hedged is three years, and such transactions relate to foreign exchange, interest rate and commodity exposures.
Other Derivatives (in millions)
For the Thirteen Weeks Ended March 30, 2013
Derivatives not in hedging relationships
 
Location of gain (loss) recognized in
income on derivative
 
Amount of gain (loss) recognized in
income on derivative
Equity conversion feature of debt
 
Interest expense, net
 
$
(29.7
)
 
 
Other income (expense), net
 
0.2

Foreign currency forwards
 
Other income (expense), net
 
(10.6
)
Total
 
 
 
$
(40.1
)
For the Thirteen Weeks Ended March 31, 2012
Derivatives not in hedging relationships
 
Location of gain (loss) recognized in
income on derivative
 
Amount of gain (loss) recognized in
income on derivative
Commodity swaps
 
Cost of goods sold
 
$
0.1

Total
 
 
 
$
0.1

Pension and Other Postretirement Benefits
Pension and Other Postretirement Benefits
Pension and Other Postretirement Benefits
Net Periodic Pension and OPEB Cost
 
For the Thirteen Weeks Ended
 
March 30, 2013
 
March 31, 2012
 
Pension
 
OPEB
 
Consolidated
 
Pension
 
OPEB
 
Consolidated
 
(In millions)
Components of net periodic pension and OPEB cost:
 
 
 
 
 
 
 
 
 
 
 
Service cost - benefits earned during the year
$
4.0

 
$
0.9

 
$
4.9

 
$
4.2

 
$
0.7

 
$
4.9

Interest cost on projected benefit obligation
39.4

 
1.8

 
41.2

 
41.1

 
2.0

 
43.1

Expected return on plan assets
(44.7
)
 

 
(44.7
)
 
(43.5
)
 

 
(43.5
)
Amortization of prior service cost (benefit)
0.2

 
(0.9
)
 
(0.7
)
 
0.2

 
(0.9
)
 
(0.7
)
Amortization of net actuarial loss (gain)
14.3

 
(0.1
)
 
14.2

 
9.8

 
(0.1
)
 
9.7

Less: expected participant contributions
(0.3
)
 

 
(0.3
)
 
(0.4
)
 

 
(0.4
)
Net periodic pension and OPEB cost
$
12.9

 
$
1.7

 
$
14.6

 
$
11.4

 
$
1.7

 
$
13.1


During the first quarter of 2013, employer contributions to the defined benefit plans were $23.4 million. Expected total fiscal year 2013 employer contributions to the defined benefit plans are approximately $110 million. MillerCoors, Brewers' Retail Inc. ("BRI") and Brewers' Distributor Limited ("BDL") contributions to their defined benefit pension and other postretirement benefit plans are not included above, as they are not consolidated in our financial statements.
Commitments and Contingencies
Commitments and Contingencies
Commitments and Contingencies
Discontinued Operations
Kaiser
In 2006, we sold our entire equity interest in our Brazilian unit, Cervejarias Kaiser Brasil S.A. ("Kaiser") to FEMSA Cerveza S.A. de C.V. ("FEMSA"). The terms of the sale agreement require us to indemnify FEMSA for exposures related to certain tax, civil and labor contingencies arising prior to FEMSA's purchase of Kaiser. In addition, we provided an indemnity to FEMSA for losses Kaiser may incur with respect to tax claims associated with certain previously utilized purchased tax credits. The discontinued operations balances within the current and non-current liabilities of our condensed consolidated balance sheets consist entirely of our estimates of these liabilities. These liabilities are denominated in Brazilian Reais and are therefore subject to foreign exchange gains or losses, which are recognized in the discontinued operations section of the condensed consolidated statement of operations. There have been no changes in the underlying liabilities from the prior year ended December 29, 2012, therefore all changes in the current and non-current liabilities of discontinued operations during the first quarter of 2013 are due to fluctuations in foreign exchange rates from December 29, 2012, to March 30, 2013. In the first quarters of 2013 and 2012, we recognized a loss of $0.9 million and a gain of $0.1 million, respectively, from discontinued operations associated with foreign exchange gains and losses related to indemnities we provided to FEMSA. Our exposure related to the tax, civil and labor indemnity claims is capped at the amount of the sales price of the 68% equity interest of Kaiser, which was $68.0 million. Separately, the maximum potential claims amount remaining for the purchased tax credits was $173.1 million as of March 30, 2013.
Future settlement procedures and related negotiation activities associated with these contingencies are largely outside of our control. Due to the uncertainty involved with the ultimate outcome and timing of these contingencies, significant adjustments to the carrying values of the indemnity obligations have been recorded to date, and additional future adjustments may be required.
Guarantees
We guarantee indebtedness and other obligations to banks and other third parties for some of our equity method investments and consolidated subsidiaries.
Rocky Mountain Metal Container ("RMMC"), a Colorado limited liability company, is a joint venture with Ball Corporation in which MillerCoors holds and consolidates a 50% interest. As of March 30, 2013, and December 29, 2012, we guaranteed $4.5 million of RMMC debt, which is due in the fourth quarter of 2013.
Related to our previous ownership in the Montréal Canadiens, we guarantee its obligations under a ground lease for the Bell Centre Arena (the "Ground Lease Guarantee"). Upon sale of our interest, the new owners agreed to indemnify us in connection with the liabilities we may incur under the Ground Lease Guarantee and provided us with a CAD 10 million letter of credit to guarantee such indemnity. This transaction did not materially affect our risk exposure related to the Ground Lease Guarantee, which continues to be recognized as a liability on our balance sheet.
Related to guarantees, other liabilities in the accompanying condensed consolidated balance sheets include $6.1 million as of March 30, 2013, and $6.2 million as of December 29, 2012, both of which are non-current.
Litigation and Other Disputes and Environmental
Related to litigation, other disputes and environmental issues, we have accrued an aggregate of $14.4 million as of March 30, 2013, and $14.5 million as of December 29, 2012. We believe that any reasonably possible losses in excess of the amounts accrued are immaterial to our condensed consolidated financial statements.
In addition to the specific cases discussed below, we are involved in other disputes and legal actions arising in the ordinary course of our business. Additionally, during the first quarter of 2013 we became aware of potential liabilities in several Central European countries primarily related to local country regulatory matters. See Note 3, "Acquisition of StarBev" for further discussion. While it is not feasible to predict or determine the outcome of these proceedings, in our opinion, based on a review with legal counsel, none of these disputes and legal actions is expected to have a material impact on our consolidated financial position, results of operations or cash flows. However, litigation is subject to inherent uncertainties and an adverse result in these or other matters may arise from time to time that may harm our business.
While we cannot predict the eventual aggregate cost for environmental and related matters in which we are currently involved, we believe that any payments, if required, for these matters would be made over a period of time in amounts that would not be material in any one year to our results from operations, cash flows or our financial or competitive position. We believe adequate reserves have been provided for losses that are probable and estimable.
Litigation and Other Disputes
In December 2012, Miller Brewing Company (“Miller”) orally informed us of its intent to terminate the license agreement between Miller and us whereby we have exclusive rights to distribute certain Miller products in Canada (the “License Agreement”) including Miller Lite, Miller High Life, Milwaukee's Best, Mickey's, Olde English, Miller Genuine Draft, and Miller Chill. Miller alleges that we failed to meet certain volume sales targets under the License Agreement. We do not believe Miller has any right under the License Agreement or otherwise to terminate the License Agreement. Following this communication, we filed a lawsuit in Ontario, Canada (Molson Canada 2005 v. Miller Brewing Company, Sup. Ct. of Justice-Ontario, CV-12-470589) seeking an injunction preventing Miller from terminating the License Agreement and ordering Miller to abide by its contractual terms. On January 18, 2013, Miller sent written notice to us purporting to terminate the License Agreement. In our lawsuit, we also assert that Miller breached the License Agreement by attempting to terminate the License Agreement. The motion for the injunction is scheduled for May 9, 2013.
We intend to vigorously assert and defend our rights in this lawsuit. At this time, we are unable to predict the outcome of this litigation or the impact, if any, of an adverse outcome on our business and results of operations, including any possible future asset impairment. We recognized net sales related to the License Agreement of $17.2 million and $16.7 million for the first quarters of 2013 and 2012, respectively. Additionally, as of March 30, 2013, we had a definite-lived intangible asset related to the License Agreement with a carrying value of $66.4 million and a remaining life of approximately 7 years.
Environmental
Canada
Our Canada brewing operations are subject to provincial environmental regulations and local permit requirements. Our Montréal and Toronto breweries have water treatment facilities to pre-treat waste water before it goes to the respective local governmental facility for final treatment. We have environmental programs in Canada including organization, monitoring and verification, regulatory compliance, reporting, education and training, and corrective action.
We sold a chemical specialties business in 1996. The Company is still responsible for certain aspects of environmental remediation, undertaken or planned, at those chemical specialties business locations. We have established provisions for the costs of these remediation programs.
United States
We have been notified that we are or may be a potentially responsible party ("PRP") under the Comprehensive Environmental Response, Compensation and Liability Act or similar state laws for the cleanup of sites where hazardous substances have allegedly been released into the environment. We cannot predict with certainty the total costs of cleanup, our share of the total cost, the extent to which contributions will be available from other parties, the amount of time necessary to complete the cleanups or insurance coverage.
Lowry
We are one of a number of entities named by the Environmental Protection Agency ("EPA") as a PRP at the Lowry Superfund site. This landfill is owned by the City and County of Denver ("Denver") and is managed by Waste Management of Colorado, Inc. ("Waste Management"). In 1990, we recorded a pre-tax charge of $30 million, a portion of which was put into a trust in 1993 as part of a settlement with Denver and Waste Management regarding the then-outstanding litigation. Our settlement was based on an assumed remediation cost of $120 million (in 1992 adjusted dollars). We are obligated to pay a portion of future costs, if any, in excess of that amount.
Waste Management provides us with updated annual cost estimates through 2032. We review these cost estimates in the assessment of our accrual related to this issue. We use certain assumptions that differ from Waste Management's estimates to assess our expected liability. Our expected liability (based on the $120 million threshold being met) is based on our best estimates available.
The assumptions used are as follows:
trust management costs are included in projections with regard to the $120 million threshold, but are expensed only as incurred;
income taxes, which we believe are not an included cost, are excluded from projections with regard to the $120 million threshold;
a 2.5% inflation rate for future costs; and
certain operations and maintenance costs were discounted using a 2.28% risk-free rate of return.
Based on these assumptions, the present value and gross amount of the costs at March 30, 2013, are approximately $3.2 million and $7.3 million, respectively. We did not assume any future recoveries from insurance companies in the estimate of our liability, and none are expected.
Considering the estimates extend through the year 2032 and the related uncertainties at the site, including what additional remedial actions may be required by the EPA, new technologies and what costs are included in the determination of when the $120 million is reached, the estimate of our liability may change as further facts develop. We cannot predict the amount of any such change, but additional accruals in the future are possible.
Other
In prior years, we have been notified by the EPA and certain state environmental divisions that we are a PRP, along with other parties, at the Cooper Drum site in southern California, the East Rutherford and Berry's Creek sites in New Jersey and the Chamblee and Smyrna sites in Georgia. Certain former non-beer business operations, which we discontinued use of and sold (excluding the property of the former Chamblee site) in the mid-1990s, were involved at these sites. Potential losses associated with these sites could increase as remediation planning progresses.
We are aware of groundwater contamination at some of our properties in Colorado resulting from historical, ongoing, or nearby activities. There may also be other contamination of which we are currently unaware.
Europe and MCI
We are subject to the requirements of governmental and local environmental and occupational health and safety laws and regulations within each of the countries in which we operate. Compliance with these laws and regulations did not materially affect our first quarter of 2013 capital expenditures, results of operations or our financial or competitive position, and we do not anticipate that they will do so during the remainder of the year.
Supplemental Guarantor Information
Supplemental Guarantor Information
Supplemental Guarantor Information
        For purposes of this Note 17, including the tables, "Parent Guarantor, 2007 and 2012 Issuer" shall mean MCBC and "Subsidiary Guarantors" shall mean certain U.S., European and Canadian subsidiaries reflecting the substantial operations of each of our U.S. and Canadian segments, as well as our U.K. operations of our European segment.
SEC Registered Securities
On June 15, 2007, MCBC issued $575 million of 2.5% convertible senior notes due July 30, 2013, in a registered public offering (see Note 12, "Debt"). The convertible notes are guaranteed on a senior unsecured basis by the Subsidiary Guarantors, each of which is 100% owned by the Parent Guarantor. The guarantees are full and unconditional and joint and several.
On May 3, 2012, MCBC issued $1.9 billion of senior notes, in a registered public offering, consisting of $300 million 2.0% senior notes due 2017, $500 million 3.5% senior notes due 2022, and $1.1 billion 5.0% senior notes due 2042. These senior notes are guaranteed on a senior unsecured basis by the Subsidiary Guarantors. Each of the Subsidiary Guarantors is 100% owned by the Parent Guarantor. The guarantees are full and unconditional and joint and several.
Other Debt
On September 22, 2005, MC Capital Finance ULC ("MC Capital Finance") issued $1.1 billion of senior notes consisting of $300 million 4.85% U.S. publicly registered notes due 2010 and CAD 900 million 5.0% privately placed notes maturing on September 22, 2015. These CAD 900 million senior notes were subsequently exchanged for substantially identical CAD 900 million senior notes which were quantified by way of a prospectus in Canada. In connection with an internal corporate reorganization, Molson Coors International LP ("MCI LP") was subsequently added as a co-issuer of the CAD 900 million senior notes in 2007. The $300 million senior notes were repaid in 2010. The continuous disclosure requirements applicable to MC Capital Finance in Canada are satisfied through the consolidating financial information in respect of MC Capital Finance, MCI LP and other subsidiary guarantors of the CAD 900 million senior notes as currently presented within the Subsidiary Guarantors column.
None of our other outstanding debt is publicly registered, and it is all guaranteed on a senior and unsecured basis by the Parent Guarantor and certain Subsidiary Guarantors. These guarantees are full and unconditional and joint and several. See Note 12, "Debt" for details of all debt issued and outstanding as of March 30, 2013.
Presentation    
During the first quarter of 2013, we identified necessary corrections to our historical treatment of certain intercompany transactions included as a component of the net investment in and advances to subsidiaries within total assets and MCBC stockholders' equity of the Parent Guarantor. While consolidated totals were not impacted, our December 29, 2012, guarantor condensed consolidating balance sheet presented within this note has been adjusted to reflect the impact of this change, which is limited to the Parent Guarantor column. This revision resulted in a reduction to the amounts attributable to the Parent Guarantor for net investment in and advances to subsidiaries from $11,342.2 million as previously reported, to $10,465.2 million as adjusted, with the offsetting adjustment to the "eliminations" column. This resulted in an equal reduction to MCBC stockholders' equity attributable to the Parent Guarantor from $8,843.9 million as previously reported, to $7,966.9 million as adjusted, with the offsetting adjustment to the "eliminations" column. The changes to our historical guarantor condensed consolidating balance sheet are not material to the financial statements taken as a whole for any periods impacted.
The following information sets forth the condensed consolidating statements of operations for the 13 weeks ended March 30, 2013, and March 31, 2012, condensed consolidating balance sheets as of March 30, 2013, and December 29, 2012, and condensed consolidating statements of cash flows for the 13 weeks ended March 30, 2013, and March 31, 2012. Investments in subsidiaries are accounted for on the equity method; accordingly, entries necessary to consolidate the Parent Guarantor and all of our guarantor and non-guarantor subsidiaries are reflected in the eliminations column. In the opinion of management, separate complete financial statements of MCBC and the Subsidiary Guarantors would not provide additional material information that would be useful in assessing their financial composition.
MOLSON COORS BREWING COMPANY AND SUBSIDIARIES
CONDENSED CONSOLIDATING STATEMENT OF OPERATIONS
FOR THE THIRTEEN WEEKS ENDED MARCH 30, 2013
(IN MILLIONS)
(UNAUDITED)

 
Parent
Guarantor, 2007 and
2012 Issuer
 
Subsidiary
Guarantors
 
Subsidiary
Non
Guarantors
 
Eliminations
 
Consolidated
Sales
$
3.9

 
$
972.8

 
$
240.4

 
$
(32.3
)
 
$
1,184.8

Excise taxes

 
(303.8
)
 
(52.5
)
 

 
(356.3
)
Net sales
3.9

 
669.0

 
187.9

 
(32.3
)
 
828.5

Cost of goods sold

 
(427.7
)
 
(146.7
)
 
27.3

 
(547.1
)
Gross profit
3.9

 
241.3

 
41.2

 
(5.0
)
 
281.4

Marketing, general and administrative expenses
(37.1
)
 
(179.0
)
 
(74.2
)
 
5.0

 
(285.3
)
Special items, net
(0.3
)
 
(0.8
)
 
(0.4
)
 

 
(1.5
)
Equity income (loss) in subsidiaries
103.5

 
(146.4
)
 
41.4

 
1.5

 

Equity income in MillerCoors

 
117.4

 

 

 
117.4

Operating income (loss)
70.0

 
32.5

 
8.0

 
1.5

 
112.0

Interest income (expense), net
(26.0
)
 
48.1

 
(97.0
)
 

 
(74.9
)
Other income (expense), net
(13.6
)
 
30.8

 
(12.9
)
 

 
4.3

Income (loss) from continuing operations before income taxes
30.4

 
111.4

 
(101.9
)
 
1.5

 
41.4

Income tax benefit (expense)
5.2

 
(8.0
)
 
(0.7
)
 

 
(3.5
)
Net income (loss) from continuing operations
35.6

 
103.4

 
(102.6
)
 
1.5

 
37.9

Income (loss) from discontinued operations, net of tax

 

 
(0.9
)
 

 
(0.9
)
Net income (loss) including noncontrolling interests
35.6

 
103.4

 
(103.5
)
 
1.5

 
37.0

Add back (less): Loss (net income) attributable to noncontrolling interests

 

 
(1.4
)
 

 
(1.4
)
Net income (loss) attributable to MCBC
$
35.6

 
$
103.4

 
$
(104.9
)
 
$
1.5

 
$
35.6

Comprehensive income attributable to MCBC
$
(206.2
)
 
$
(119.3
)
 
$
(216.2
)
 
$
335.5

 
$
(206.2
)


MOLSON COORS BREWING COMPANY AND SUBSIDIARIES
CONDENSED CONSOLIDATING STATEMENT OF OPERATIONS
FOR THE THIRTEEN WEEKS ENDED MARCH 31, 2012
(IN MILLIONS)
(UNAUDITED)

 
Parent
Guarantor, 2007 and
2012 Issuer
 
Subsidiary
Guarantors
 
Subsidiary
Non
Guarantors
 
Eliminations
 
Consolidated
Sales
$
5.5

 
$
982.7

 
$
59.7

 
$
(39.8
)
 
$
1,008.1

Excise taxes

 
(303.9
)
 
(12.8
)
 

 
(316.7
)
Net sales
5.5

 
678.8

 
46.9

 
(39.8
)
 
691.4

Cost of goods sold

 
(416.6
)
 
(54.5
)
 
32.3

 
(438.8
)
Gross profit
5.5

 
262.2

 
(7.6
)
 
(7.5
)
 
252.6

Marketing, general and administrative expenses
(34.5
)
 
(202.0
)
 
(19.2
)
 
7.5

 
(248.2
)
Special items, net
(1.1
)
 
(0.4
)
 

 

 
(1.5
)
Equity income (loss) in subsidiaries
85.0

 
(117.6
)
 
26.0

 
6.6

 

Equity income in MillerCoors

 
118.9

 

 

 
118.9

Operating income (loss)
54.9

 
61.1

 
(0.8
)
 
6.6

 
121.8

Interest income (expense), net

 
74.1

 
(97.9
)
 

 
(23.8
)
Other income (expense), net
12.0

 
(12.6
)
 
(0.8
)
 

 
(1.4
)
Income (loss) from continuing operations before income taxes
66.9

 
122.6

 
(99.5
)
 
6.6

 
96.6

Income tax benefit (expense)
12.6

 
(37.7
)
 
7.8

 

 
(17.3
)
Net income (loss) from continuing operations
79.5

 
84.9

 
(91.7
)
 
6.6

 
79.3

Income (loss) from discontinued operations, net of tax

 

 
0.1

 

 
0.1

Net income (loss) including noncontrolling interests
79.5

 
84.9

 
(91.6
)
 
6.6

 
79.4

Add back (less): Loss (net income) attributable to noncontrolling interests

 

 
0.1

 

 
0.1

Net income (loss) attributable to MCBC
$
79.5

 
$
84.9

 
$
(91.5
)
 
$
6.6

 
$
79.5

Comprehensive income attributable to MCBC
$
190.6

 
$
219.4

 
$
(100.6
)
 
$
(118.8
)
 
$
190.6

MOLSON COORS BREWING COMPANY AND SUBSIDIARIES
CONDENSED CONSOLIDATING BALANCE SHEETS
AS OF MARCH 30, 2013
(IN MILLIONS)
(UNAUDITED)
 
Parent
Guarantor, 2007 and
2012 Issuer
 
Subsidiary
Guarantors
 
Subsidiary
Non
Guarantors
 
Eliminations
 
Consolidated
Assets
 
 
 
 
 
 
 
 
 
Current assets:
 
 
 
 
 
 
 
 
 
Cash and cash equivalents
$
107.8

 
$
259.3

 
$
144.4

 
$

 
$
511.5

Accounts receivable, net
1.4

 
433.2

 
137.6

 

 
572.2

Other receivables, net
69.2

 
50.6

 
18.2

 

 
138.0

Total inventories, net

 
207.6

 
50.0

 

 
257.6

Other assets, net
8.9

 
83.7

 
48.9

 

 
141.5

Deferred tax assets

 

 
70.4

 
(1.5
)
 
68.9

Intercompany accounts receivable

 
1,910.0

 
804.4

 
(2,714.4
)
 

Total current assets
187.3

 
2,944.4

 
1,273.9

 
(2,715.9
)
 
1,689.7

Properties, net
24.3

 
1,282.2

 
619.0

 

 
1,925.5

Goodwill

 
1,018.2

 
1,347.5

 

 
2,365.7

Other intangibles, net

 
4,476.7

 
2,551.6

 

 
7,028.3

Investment in MillerCoors

 
2,530.4

 

 

 
2,530.4

Net investment in and advances to subsidiaries
10,346.2

 
2,802.9

 
5,929.1

 
(19,078.2
)
 

Deferred tax assets
68.7

 
151.9

 
0.8

 
(31.6
)
 
189.8

Other assets, net
38.0

 
122.5

 
52.8

 

 
213.3

Total assets
$
10,664.5

 
$
15,329.2

 
$
11,774.7

 
$
(21,825.7
)
 
$
15,942.7

Liabilities and equity
 
 
 
 
 
 
 
 
 
Current liabilities:
 
 
 
 
 
 
 
 
 
Accounts payable
$
7.1

 
$
268.5

 
$
179.9

 
$

 
$
455.5

Accrued expenses and other liabilities
59.1

 
501.0

 
148.4

 

 
708.5

Derivative hedging instruments
10.6

 
2.8

 
0.1

 

 
13.5

Deferred tax liability
12.4

 
156.9

 
1.1

 
(1.5
)
 
168.9

Current portion of long-term debt and short-term borrowings
568.8

 
678.3

 
13.3

 

 
1,260.4

Discontinued operations

 

 
8.0

 

 
8.0

Intercompany accounts payable
1,170.9

 
812.8

 
730.7

 
(2,714.4
)
 

Total current liabilities
1,828.9

 
2,420.3

 
1,081.5

 
(2,715.9
)
 
2,614.8

Long-term debt
1,895.7

 
1,374.5

 
120.6

 

 
3,390.8

Pension and post-retirement benefits
3.4

 
766.7

 
6.5

 

 
776.6

Derivative hedging instruments

 
206.5

 

 

 
206.5

Deferred tax liability

 

 
998.0

 
(31.6
)
 
966.4

Other liabilities, net
9.8

 
57.3

 
103.3

 

 
170.4

Discontinued operations

 

 
20.3

 

 
20.3

Intercompany notes payable

 
1,067.9

 
6,810.7

 
(7,878.6
)
 

Total liabilities
3,737.8

 
5,893.2

 
9,140.9

 
(10,626.1
)
 
8,145.8

MCBC stockholders' equity
7,771.1

 
15,603.8

 
3,474.4

 
(19,078.2
)
 
7,771.1

Intercompany notes receivable
(844.4
)
 
(6,167.8
)
 
(866.4
)
 
7,878.6

 

Total stockholders' equity
6,926.7

 
9,436.0

 
2,608.0

 
(11,199.6
)
 
7,771.1

Noncontrolling interests

 

 
25.8

 

 
25.8

Total equity
6,926.7

 
9,436.0

 
2,633.8

 
(11,199.6
)
 
7,796.9

Total liabilities and equity
$
10,664.5

 
$
15,329.2

 
$
11,774.7

 
$
(21,825.7
)
 
$
15,942.7


MOLSON COORS BREWING COMPANY AND SUBSIDIARIES
CONDENSED CONSOLIDATING BALANCE SHEETS
AS OF DECEMBER 29, 2012
(IN MILLIONS)
(UNAUDITED)
 
Parent
Guarantor, 2007 and
2012 Issuer
 
Subsidiary
Guarantors
 
Subsidiary
Non
Guarantors
 
Eliminations
 
Consolidated
Assets
 
 
 
 
 
 
 
 
 
Current assets:
 
 
 
 
 
 
 
 
 
Cash and cash equivalents
$
189.8

 
$
249.3

 
$
184.9

 
$

 
$
624.0

Accounts receivable, net
1.7

 
524.7

 
134.1

 

 
660.5

Other receivables, net
22.7

 
54.6

 
15.6

 

 
92.9

Total inventories, net

 
172.5

 
41.4

 

 
213.9

Other assets, net
10.7

 
67.1

 
39.7

 

 
117.5

Deferred tax assets

 

 
40.7

 
(1.5
)
 
39.2

Intercompany accounts receivable

 
2,077.8

 
1,137.5

 
(3,215.3
)
 

Total current assets
224.9

 
3,146.0

 
1,593.9

 
(3,216.8
)
 
1,748.0

Properties, net
25.1

 
1,338.9

 
631.9

 

 
1,995.9

Goodwill

 
1,068.5

 
1,384.6

 

 
2,453.1

Other intangibles, net

 
4,606.8

 
2,628.0

 

 
7,234.8

Investment in MillerCoors

 
2,431.8

 

 

 
2,431.8

Net investment in and advances to subsidiaries
10,465.2

 
2,291.6

 
5,291.7

 
(18,048.5
)
 

Deferred tax assets
47.4

 
104.8

 
4.9

 
(31.7
)
 
125.4

Other assets
38.6

 
125.0

 
59.6

 

 
223.2

Total assets
$
10,801.2

 
$
15,113.4

 
$
11,594.6

 
$
(21,297.0
)
 
$
16,212.2

Liabilities and equity
 
 
 
 
 
 
 
 
 
Current liabilities:
 
 
 
 
 
 
 
 
 
Accounts payable
$
6.9

 
$
250.4

 
$
169.7

 
$

 
$
427.0

Accrued expenses and other liabilities
57.1

 
537.3

 
165.5

 

 
759.9

Derivative hedging instruments

 
6.0

 

 

 
6.0

Deferred tax liability
11.3

 
142.5

 

 
(1.5
)
 
152.3

Current portion of long-term debt and short-term borrowings
564.2

 
668.3

 
13.1

 

 
1,245.6

Discontinued operations

 

 
7.9

 

 
7.9

Intercompany accounts payable
1,166.3

 
1,133.3

 
915.7

 
(3,215.3
)
 

Total current liabilities
1,805.8

 
2,737.8

 
1,271.9

 
(3,216.8
)
 
2,598.7

Long-term debt
1,895.6

 
1,402.5

 
124.4

 

 
3,422.5

Pension and post-retirement benefits
3.3

 
823.1

 
6.6

 

 
833.0

Derivative hedging instruments

 
222.2

 

 

 
222.2

Deferred tax liability

 

 
980.2

 
(31.7
)
 
948.5

Other liabilities, net
6.6

 
64.4

 
104.7

 

 
175.7

Discontinued operations

 

 
20.0

 

 
20.0

Intercompany notes payable

 
1,135.8

 
6,971.9

 
(8,107.7
)
 

Total liabilities
3,711.3

 
6,385.8

 
9,479.7

 
(11,356.2
)
 
8,220.6

MCBC stockholders' equity
7,966.9

 
15,036.7

 
3,011.8

 
(18,048.5
)
 
7,966.9

Intercompany notes receivable
(877.0
)
 
(6,309.1
)
 
(921.6
)
 
8,107.7

 

Total stockholders' equity
7,089.9

 
8,727.6

 
2,090.2

 
(9,940.8
)
 
7,966.9

Noncontrolling interests

 

 
24.7

 

 
24.7

Total equity
7,089.9

 
8,727.6

 
2,114.9

 
(9,940.8
)
 
7,991.6

Total liabilities and equity
$
10,801.2

 
$
15,113.4

 
$
11,594.6

 
$
(21,297.0
)
 
$
16,212.2

MOLSON COORS BREWING COMPANY AND SUBSIDIARIES
CONDENSED CONSOLIDATING STATEMENT OF CASH FLOWS
FOR THE THIRTEEN WEEKS ENDED MARCH 30, 2013
(IN MILLIONS)
(UNAUDITED)

 
Parent
Guarantor, 2007 and
2012 Issuer
 
Subsidiary
Guarantors
 
Subsidiary
Non
Guarantors
 
Eliminations
 
Consolidated
Net cash provided by (used in) operating activities
$
(58.0
)
 
$
174.6

 
$
2.5

 
$
(0.7
)
 
$
118.4

CASH FLOWS FROM INVESTING ACTIVITIES:
 
 
 
 
 
 
 
 
 
Additions to properties
(1.6
)
 
(30.2
)
 
(36.5
)
 

 
(68.3
)
Proceeds from sales of properties and intangible assets

 
1.2

 
2.5

 

 
3.7

Investment in MillerCoors

 
(331.8
)
 

 

 
(331.8
)
Return of capital from MillerCoors

 
222.4

 

 

 
222.4

Trade loan repayments from customers

 
2.6

 

 

 
2.6

Trade loans advanced to customers

 
(2.5
)
 

 

 
(2.5
)
Net intercompany investing activity

 
(9.4
)
 

 
9.4

 

Net cash provided by (used in) investing activities
(1.6
)
 
(147.7
)
 
(34.0
)
 
9.4

 
(173.9
)
CASH FLOWS FROM FINANCING ACTIVITIES:
 
 
 
 
 
 
 
 
 
Exercise of stock options under equity compensation plans
27.2

 

 

 

 
27.2

Excess tax benefits from share-based compensation
1.6

 

 

 

 
1.6

Dividends paid
(51.2
)
 

 
(7.7
)
 
0.7

 
(58.2
)
Payments for purchase of noncontrolling interest

 

 
(0.2
)
 

 
(0.2
)
Proceeds from short-term borrowings

 

 
5.9

 

 
5.9

Payments on short-term borrowings

 

 
(13.8
)
 

 
(13.8
)
Net (payments) proceeds from revolving credit facilities

 

 
(1.2
)
 

 
(1.2
)
Change in overdraft balances and other

 
(0.2
)
 
3.7

 

 
3.5

Net intercompany financing activity

 

 
9.4

 
(9.4
)
 

Net cash provided by (used in) financing activities
(22.4
)
 
(0.2
)
 
(3.9
)
 
(8.7
)
 
(35.2
)
CASH AND CASH EQUIVALENTS:
 
 
 
 
 
 
 
 
 
Net increase (decrease) in cash and cash equivalents
(82.0
)
 
26.7

 
(35.4
)
 

 
(90.7
)
Effect of foreign exchange rate changes on cash and cash equivalents

 
(16.7
)
 
(5.1
)
 

 
(21.8
)
Balance at beginning of year
189.8

 
249.3

 
184.9

 

 
624.0

Balance at end of period
$
107.8

 
$
259.3

 
$
144.4

 
$

 
$
511.5


MOLSON COORS BREWING COMPANY AND SUBSIDIARIES
CONDENSED CONSOLIDATING STATEMENT OF CASH FLOWS
FOR THE THIRTEEN WEEKS ENDED MARCH 31, 2012
(IN MILLIONS)
(UNAUDITED)

 
Parent
Guarantor, 2007 and
2012 Issuer
 
Subsidiary
Guarantors
 
Subsidiary
Non
Guarantors
 
Eliminations
 
Consolidated
Net cash (used in) provided by operating activities
$
155.3

 
$
(214.6
)
 
$
111.3

 
$
(1.6
)
 
$
50.4

CASH FLOWS FROM INVESTING ACTIVITIES:
 
 
 
 
 
 
 
 
 
Additions to properties
(1.1
)
 
(29.6
)
 
(3.1
)
 

 
(33.8
)
Proceeds from sales of properties and intangible assets

 
0.8

 

 

 
0.8

Investment in MillerCoors

 
(236.0
)
 

 

 
(236.0
)
Return of capital from MillerCoors

 
124.6

 

 

 
124.6

Payments on settlement of derivative instruments

 
(110.6
)
 

 

 
(110.6
)
Investment in and advances to an unconsolidated affiliate

 
(2.5
)
 
(2.1
)
 

 
(4.6
)
Trade loan repayments from customers

 
3.8

 

 

 
3.8

Trade loans advanced to customers

 
(2.4
)
 

 

 
(2.4
)
Net intercompany investing activity
(39.9
)
 
116.4

 

 
(76.5
)
 

Net cash provided by (used in) investing activities
(41.0
)
 
(135.5
)
 
(5.2
)
 
(76.5
)
 
(258.2
)
CASH FLOWS FROM FINANCING ACTIVITIES:
 

 
 

 
 

 
 

 
 

Exercise of stock options under equity compensation plans
19.7

 

 

 

 
19.7

Excess tax benefits from share-based compensation
3.3

 

 

 

 
3.3

Dividends paid
(57.8
)
 
(1.6
)
 

 
1.6

 
(57.8
)
Dividends paid to noncontrolling interest holders

 
(1.7
)
 

 

 
(1.7
)
Payments on long-term debt and capital lease obligations

 
(0.1
)
 

 

 
(0.1
)
Payments on short-term borrowings

 

 
(10.8
)
 

 
(10.8
)
Net (payments) proceeds from revolving credit facilities

 

 
1.5

 

 
1.5

Net intercompany financing activity

 
39.7

 
(116.2
)
 
76.5

 

Net cash provided by (used in) financing activities
(34.8
)
 
36.3

 
(125.5
)
 
78.1

 
(45.9
)
CASH AND CASH EQUIVALENTS:
 
 
 
 
 
 
 
 
 
Net increase (decrease) in cash and cash equivalents
79.5

 
(313.8
)
 
(19.4
)
 

 
(253.7
)
Effect of foreign exchange rate changes on cash and cash equivalents

 
10.2

 
0.9

 

 
11.1

Balance at beginning of year
601.1

 
422.5

 
55.3

 

 
1,078.9

Balance at end of period
$
680.6

 
$
118.9

 
$
36.8

 
$

 
$
836.3



Accumulated Other Comprehensive Income (Loss) Accumulated Other Comprehensive Income (Loss)
Accumuolated Other Comprehensive Income (Loss)
Accumulated Other Comprehensive Income (Loss)
Changes in accumulated other comprehensive income (loss) for the first quarter of 2013 were as follows:
 
MCBC shareholders
 
Foreign
currency
translation
adjustments
 
Gain (loss) on
derivative
instruments
 
Pension and
postretirement
benefit
adjustments
 
Equity method
investments
 
Accumulated
other
comprehensive
income (loss)
 
(In millions)
As of December 29, 2012
$
1,187.5

 
$
(17.7
)
 
$
(844.1
)
 
$
(398.0
)
 
$
(72.3
)
Foreign currency translation adjustments
(268.7
)
 

 

 

 
(268.7
)
Unrealized gain (loss) on derivative instruments

 
23.7

 

 

 
23.7

Reclassification of derivative losses to income

 
0.2

 

 

 
0.2

Amortization of net prior service costs and net actuarial losses to income

 

 
13.5

 

 
13.5

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

 

 

 
(10.8
)
 
(10.8
)
Tax adjustment related to investment in MillerCoors AOCI reclassification(1)

 

 

 
34.3

 
34.3

Tax benefit (expense)
7.4

 
(10.7
)
 
(0.5
)
 
4.1

 
0.3

As of March 30, 2013
$
926.2

 
$
(4.5
)
 
$
(831.1
)
 
$
(370.4
)
 
$
(279.8
)
(1)
During the first quarter of 2013 we recorded a tax adjustment related to the reclassification of amounts from the investment in MillerCoors to AOCI that was recorded in the fourth quarter of 2012, to reflect our proportional share of MillerCoors AOCI at formation. We made this reclassification in 2012 as we believe the new presentation provides improved transparency of our share of MillerCoors AOCI. This tax adjustment, which should have been made in 2012 with the reclassification, was not material to either the current or prior period financial statements taken as a whole and therefore prior periods do not reflect the adjustment.
Reclassifications from AOCI to income for the first quarter of 2013 were as follows:
 
 
Reclassifications from AOCI
 
Location of gain (loss)
recognized in income
 
 
(In millions)
 
 
Gains/(losses) on cash flow hedges:
 
 
 
 
Forward starting interest rate swaps
 
$
(0.4
)
 
Interest expense, net
Foreign currency forwards
 
(0.1
)
 
Other income (expense), net
Foreign currency forwards
 
0.5

 
Cost of goods sold
Commodity swaps
 
(0.2
)
 
Cost of goods sold
Total income (loss) reclassified, before tax
 
(0.2
)
 
 
Income tax benefit (expense)
 
0.1

 
 
Net income (loss) reclassified, net of tax
 
$
(0.1
)
 
 
 
 
 
 
 
Amortization of defined benefit pension and other postretirement benefit plan items:
 
 
 
 
Prior service benefit (cost)
 
$
0.7

 
(1)
Net actuarial gains (losses)
 
(14.2
)
 
(1)
Total income (loss) reclassified, before tax
 
(13.5
)
 
 
Income tax benefit (expense)
 
2.9

 
 
Net income (loss) reclassified, net of tax
 
$
(10.6
)
 
 
 
 
 
 
 
Total income (loss) reclassified, net of tax
 
$
(10.7
)
 
 
(1)
These components of AOCI are included in the computation of net periodic pension and other postretirement benefit cost. See Note 15, "Pension and Other Postretirement Benefits" for additional details.
Acquisition of Molson Coors Central Europe (Tables)
The following unaudited pro forma summary presents our condensed consolidated statements of operations as if Central Europe had been acquired on December 26, 2010, the first day of our 2011 fiscal year. These amounts were calculated after conversion of StarBev's historical operating results to U.S. GAAP, conforming to our accounting policies, and adjusting StarBev's results to reflect the depreciation and amortization that would have been charged assuming the preliminary fair value adjustments to properties and other intangibles resulting from the purchase had it been applied from December 26, 2010, together with the consequential tax effects. These adjustments also reflect the removal of StarBev historical interest expense on debt that was repaid at the time of the Acquisition, the addition of interest expense to be prospectively incurred on the debt issued to finance the Acquisition and the removal of the previously mentioned acquisition-related costs of $6.1 million incurred in the first quarter of 2012. These adjustments do not reflect changes in fair value of the embedded conversion feature or foreign exchange movements of the convertible note issued to the Seller as part of the Acquisition. This unaudited pro forma financial information is not intended to reflect the performance which would have actually resulted had the Acquisition been effected on the dates indicated. Further, the unaudited pro forma results of operations are not necessarily indicative of the results of operations that may be obtained in the future.
 
Thirteen Weeks Ended
 
March 31, 2012
 
(In millions)
Net sales
$
830.8

Income from continuing operations before income taxes
$
68.5

Net income attributable to MCBC
$
58.5

Net income per common share attributable to MCBC:
 
         Basic
$
0.32

         Diluted
$
0.32

The following table represents the preliminary allocation of the total consideration to the identifiable net assets, fair value of the noncontrolling interest, and resulting residual goodwill as of June 15, 2012. These allocated amounts were updated for immaterial changes in the first quarter of 2013 and will be finalized in the second quarter of 2013. During the first quarter of 2013 we became aware of potential liabilities in several Central European countries primarily related to local country regulatory matters. As a result we have identified certain items primarily associated with pre-acquisition periods that could result in an adjustment to the preliminary purchase price allocation. However, we currently cannot reliably estimate or determine the probability related to the outcome of these matters and therefore have not reflected an adjustment to the opening balance sheet. Additionally, some of these items, if materialized, are subject to various claims with the previous owners of the Central Europe business.
 
Fair Value
 
(In millions)
Cash and cash equivalents
$
143.6

Current assets(1)
263.5

Properties
571.5

Other intangibles(2)
2,438.6

Other assets
36.7

Total assets acquired
$
3,453.9

Current liabilities(3)
848.8

Non-current liabilities(4)
428.8

Total liabilities assumed
$
1,277.6

Total identifiable net assets
$
2,176.3

Noncontrolling interest measured at fair value
40.6

Goodwill(5)
911.2

Total consideration
$
3,046.9

(1)
Includes trade receivables of $167.5 million and inventory of $57.3 million.
(2)
See Note 11, "Goodwill and Intangible Assets" for further discussion.
(3)
Includes the $423.4 million subordinated deferred payment obligation assumed, which was subsequently repaid for $425.7 million on June 29, 2012.
(4)
Includes $408.7 million of deferred tax liabilities.
(5)
The goodwill resulting from the Acquisition is primarily attributable to Central Europe's licensed brand brewing, distribution and import business, anticipated synergies and the assembled workforce. We have preliminarily assigned the majority of the goodwill to our Europe reporting unit with a portion allocated to the Canada reporting unit resulting from synergies. The goodwill is not expected to be deductible for tax purposes. See Note 11, "Goodwill and Intangible Assets" for further discussion.
Segment Reporting (Tables)
The following table presents net sales by segment:
 
Thirteen Weeks Ended
 
March 30, 2013
 
March 31, 2012
 
(In millions)
Canada
$
395.6

 
$
402.3

Europe
406.4

 
263.4

MCI
27.0

 
28.1

Corporate
0.3

 
0.3

Eliminations(1)
(0.8
)
 
(2.7
)
         Consolidated
$
828.5

 
$
691.4


(1)
Represents inter-segment sales from the Europe segment to the MCI segment.
The following table presents income (loss) from continuing operations before income taxes by segment:
 
Thirteen Weeks Ended
 
March 30, 2013
 
March 31, 2012
 
(In millions)
Canada
$
36.4

 
$
43.9

U.S. 
117.4

 
118.9

Europe
(3.7
)
 
1.3

MCI
(6.1
)
 
(8.6
)
Corporate(1)
(102.6
)
 
(58.9
)
         Consolidated
$
41.4

 
$
96.6


(1)
The increase in the loss in Corporate in the first quarter of 2013 compared to the first quarter of 2012 is due to higher interest expense as a result of financing related to the Acquisition.
The following table presents total assets by segment:
 
As of
 
March 30, 2013
 
December 29, 2012
 
(In millions)
Canada
$
6,375.4

 
$
6,547.1

U.S. 
2,530.4

 
2,431.8

Europe
6,464.1

 
6,742.4

MCI
91.8

 
92.0

Corporate
481.0

 
398.9

         Consolidated
$
15,942.7

 
$
16,212.2

Investments (Tables)
Summarized financial information for MillerCoors is as follows:
Condensed Balance Sheets
 
As of
 
March 31, 2013
 
December 31, 2012
 
(In millions)
Current assets
$
1,026.9

 
$
841.4

Non-current assets
8,931.4

 
8,949.9

Total assets
$
9,958.3

 
$
9,791.3

Current liabilities
$
870.3

 
$
958.5

Non-current liabilities
1,522.5

 
1,537.5

Total liabilities
2,392.8

 
2,496.0

Noncontrolling interests
29.7

 
28.4

Owners' equity
7,535.8

 
7,266.9

Total liabilities and equity
$
9,958.3

 
$
9,791.3

The following represents our proportional share in MillerCoors' equity:
 
As of
 
March 31, 2013
 
December 31, 2012
 
(In millions, except percentages)
MillerCoors owners' equity
$
7,535.8

 
$
7,266.9

MCBC economic interest
42
%
 
42
%
MCBC proportionate share in MillerCoors' equity
3,165.0

 
3,052.1

Difference between MCBC contributed cost basis and proportional share of the underlying equity in net assets of MillerCoors(1)
(669.6
)
 
(670.8
)
Accounting policy elections
35.0

 
35.0

Timing differences of cash contributions and distributions as a result of different fiscal periods

 
15.5

Investment in MillerCoors
$
2,530.4

 
$
2,431.8

(1)
Our net investment in MillerCoors is based on the carrying values of the net assets contributed to the joint venture which is less than our proportional share of underlying equity (42%) of MillerCoors (contributed by both Coors Brewing Company ("CBC") and Miller Brewing Company ("Miller")). This basis difference, with the exception of certain non-amortizing items (goodwill, land, etc.) is being amortized as additional equity income over the remaining useful lives of the contributed long-lived amortizing assets.
Results of Operations
 
Three Months Ended
 
March 31, 2013
 
March 31, 2012
 
(In millions)
Net sales
$
1,788.3

 
$
1,759.8

Cost of goods sold
(1,088.7
)
 
(1,070.0
)
Gross profit
$
699.6

 
$
689.8

Operating income
$
274.5

 
$
279.0

Net income attributable to MillerCoors
$
271.9

 
$
275.3


The following represents our proportional share in net income attributable to MillerCoors reported under the equity method:
 
Thirteen Weeks Ended
 
March 30, 2013
 
March 31, 2012
 
(In millions, except percentages)
Net income attributable to MillerCoors
$
271.9

 
$
275.3

MCBC economic interest
42
%
 
42
%
MCBC proportionate share of MillerCoors net income
114.2

 
115.6

Amortization of the difference between MCBC contributed cost basis and proportional share of the underlying equity in net assets of MillerCoors
1.2

 
0.4

Share-based compensation adjustment(1)
2.0

 
2.9

Equity income in MillerCoors
$
117.4

 
$
118.9


(1)
The net adjustment is to eliminate all share-based compensation impacts related to pre-existing SABMiller plc equity awards held by former Miller employees now employed by MillerCoors.
The following table summarizes our transactions with MillerCoors:
 
Thirteen Weeks Ended
 
March 30, 2013
 
March 31, 2012
 
(In millions)
Beer sales to MillerCoors
$
4.4

 
$
4.9

Beer purchases from MillerCoors
$
3.1

 
$
2.3

Service agreement costs and other charges to MillerCoors
$
0.6

 
$
1.1

Service agreement costs and other charges from MillerCoors
$
0.2

 
$
0.2

The following summarizes the assets and liabilities of our consolidated VIEs (including noncontrolling interests):
 
As of
 
March 30, 2013
 
December 29, 2012
 
Total Assets
 
Total Liabilities
 
Total Assets
 
Total Liabilities
 
(In millions)
Grolsch
$
6.4

 
$
2.0

 
$
10.0

 
$
5.6

Cobra U.K.
$
32.5

 
$
2.4

 
$
33.2

 
$
3.3

Share-Based Payments (Tables)
The following table summarizes share-based compensation expense:
 
Thirteen Weeks Ended
 
March 30, 2013
 
March 31, 2012
 
(In millions)
Pre-tax compensation expense
$
11.1

 
$
4.8

Tax benefit
(3.4
)
 
(1.5
)
After-tax compensation expense
$
7.7

 
$
3.3

The following table represents the summary of stock options and stock-only stock appreciation rights ("SOSAR") outstanding as of March 30, 2013, and the activity during the first quarter of 2013:
 
Shares outstanding
 
Weighted-average
exercise price per
share
 
Weighted-average
remaining
contractual life
(years)
 
Aggregate
intrinsic value
 
(In millions, except per share amounts and years)
Outstanding as of December 29, 2012
6.0
 
$40.55
 
4.05
 
$
23.2

Granted
0.2
 
$45.22
 
 
 
 
Exercised
(0.7)
 
$34.68
 
 
 
 
Forfeited
 
$—
 
 
 
 
Outstanding as of March 30, 2013
5.5
 
$41.57
 
4.11
 
$
44.2

Exercisable at March 30, 2013
4.8
 
$41.24
 
3.52
 
$
41.0

The following table represents non-vested RSUs, DSUs, PSUs and PUs as of March 30, 2013, and the activity during the first quarter of 2013:
 
RSUs and DSUs
 
PUs
 
PSUs
 
Units
 
Weighted-average
grant date fair value
per unit
 
Units
 
Weighted-average
grant date fair value
per unit
 
Units
 
Weighted-average
grant date fair value
per unit
 
(In millions, except per unit amounts)
Non-vested as of December 29, 2012
0.7

 
$43.06
 
1.7

 
$10.90
 

 
$—
Granted
0.2

 
$41.42
 

 
$—
 
0.2

 
$43.10
Vested
(0.1
)
 
$43.13
 
(0.6
)
 
$11.64
 

 
$—
Forfeited
(0.1
)
 
$42.92
 
(0.1
)
 
$7.37
 

 
$—
Non-vested as of March 30, 2013
0.7

 
$42.64
 
1.0

 
$6.45
 
0.2

 
$43.10
The fair value of each option granted in the first quarter of 2013 and 2012 was determined on the date of grant using the Black-Scholes option-pricing model with the following weighted-average assumptions:
 
Thirteen Weeks Ended
 
March 30, 2013
 
March 31, 2012
Risk-free interest rate
1.43%
 
1.56%
Dividend yield
2.88%
 
2.98%
Volatility range
22.39%-25.90%
 
25.80%-27.56%
Weighted-average volatility
25.02%
 
25.84%
Expected term (years)
7.7
 
4.0-7.7
Weighted-average fair market value
$8.39
 
$8.18
Special items (Tables)
The table below summarizes special items recorded by segment:
 
Thirteen Weeks Ended
 
March 30, 2013
 
March 31, 2012
 
(In millions)
Employee related charges
 
 
 
Restructuring(1)
 
 
 
Canada
$
1.3

 
$
1.6

Europe
3.3

 
1.8

Corporate
0.3

 
1.1

Special termination benefits
 
 
 
Canada(2)
0.8

 
0.5

Unusual or infrequent items
 
 
 
Europe - Release of non-income-related tax reserve(3)
(4.2
)
 
(3.5
)
Total Special items, net
$
1.5

 
$
1.5

(1)
During 2013 and 2012, we recognized expenses associated with restructuring programs focused on labor savings and organizational effectiveness across all functions. As a result, we have reduced headcount by approximately 660 employees since the start of 2012.
(2)
During the first quarters of 2013 and 2012, we recognized charges related to special termination benefits as eligible employees elected early retirement offered as a result of the ratification of Collective Bargaining Agreements with MCC's brewery groups.
(3)
During 2009, we established a non-income-related tax reserve of $10.4 million that was recorded as a special item. Our estimates indicated a range of possible loss relative to this reserve of zero to $22.3 million, inclusive of potential penalties and interest. The amounts recorded in 2013 and 2012 represent the release of this reserve as a result of a change in estimate. As a result, this non-income-related tax reserve is fully released as of March 30, 2013.
The table below summarizes the activity in the restructuring accruals by segment:
 
Canada
 
Europe
 
MCI
 
Corporate
 
Total
 
(In millions)
Total at December 29, 2012
$
7.1

 
$
13.4

 
$
2.8

 
$
1.5

 
$
24.8

Charges incurred
1.3

 
3.3

 

 
0.3

 
4.9

Payments made
(2.9
)
 
(2.6
)
 
(1.7
)
 
(0.3
)
 
(7.5
)
Foreign currency and other adjustments
(0.2
)
 
(0.4
)
 

 

 
(0.6
)
Total at March 30, 2013
$
5.3

 
$
13.7

 
$
1.1

 
$
1.5

 
$
21.6

Other Income and Expense (Tables)
Summarization of other income and expenses
The table below summarizes other income and expense:
 
Thirteen Weeks Ended
 
March 30, 2013
 
March 31, 2012
 
(In millions)
Gain on sale of non-operating asset(1)
$
1.2

 
$

Gain (loss) from other foreign exchange and derivative activity(2)
2.7

 
(1.7
)
Other, net
0.4

 
0.3

Other income (expense), net
$
4.3

 
$
(1.4
)

(1)
Gain realized for proceeds received related to a non-income-related tax settlement resulting from historical activity within our former investment in the Montreal Canadiens.
(2)
Included in this amount is an unrealized gain of $20.1 million for the first quarter of 2013 related to foreign currency movements on foreign-denominated financing instruments entered into in conjunction with the closing of the Acquisition. This is offset by an unrealized loss of $10.6 million related to foreign exchange contracts to hedge our risk associated with payments of this foreign-denominated debt. See Note 12, "Debt" and Note 14, "Derivative Instruments and Hedging Activities" for further discussion of financing activities related to the Acquisition. Additionally, we recorded losses of $6.8 million and $1.7 million for the first quarters of 2013 and 2012, respectively, related to other foreign exchange and derivative activity.
Earnings per Share ("EPS") (Tables)
The following summarizes the effect of dilutive securities on diluted EPS:
 
Thirteen Weeks Ended
 
March 30, 2013
 
March 31, 2012
 
(In millions, except per share amounts)
Amounts attributable to MCBC
 
 
 
Net income (loss) from continuing operations
$
36.5

 
$
79.4

Income (loss) from discontinued operations, net of tax
(0.9
)
 
0.1

Net income (loss) attributable to MCBC
$
35.6

 
$
79.5

Weighted-average shares for basic EPS
181.7

 
180.3

Effect of dilutive securities:
 
 
 
Stock options and SOSARs
0.7

 
0.8

RSUs, PSUs, PUs and DSUs
0.5

 
0.6

Weighted-average shares for diluted EPS
182.9

 
181.7

Basic net income (loss) per share:
 
 
 
Continuing operations attributable to MCBC
$
0.20

 
$
0.44

Discontinued operations attributable to MCBC

 

Basic net income (loss) attributable to MCBC
$
0.20

 
$
0.44

Diluted net income (loss) per share:
 
 
 
Continuing operations attributable to MCBC
$
0.20

 
$
0.44

Discontinued operations attributable to MCBC

 

Diluted net income (loss) attributable to MCBC
$
0.20

 
$
0.44

Dividends declared and paid per share
$
0.32

 
$
0.32

The following anti-dilutive securities were excluded from the computation of the effect of dilutive securities on diluted earnings per share:
 
Thirteen Weeks Ended
 
March 30, 2013
 
March 31, 2012
 
(In millions)
Stock options, SOSARs and RSUs
0.2

 
0.8

Shares of Class B common stock issuable upon assumed conversion of the 2.5% Convertible Senior Notes(1)
11.0

 
10.9

Warrants to issue shares of Class B common stock(1)
11.0

 
10.9

Shares of Class B common stock issuable upon assumed conversion of the €500 million Convertible Note(2)
0.2

 

Total anti-dilutive securities
22.4

 
22.6


(1)
In June 2007, we issued $575 million of senior convertible notes due July 2013. The impact of a net share settlement of the conversion amount at maturity will begin to dilute earnings per share if and when our stock price reaches $52.18. The impact of stock that could be issued to settle share obligations we could have under the warrants we issued simultaneously with the senior convertible notes issuance will begin to dilute earnings per share when our stock price reaches $66.79. The potential receipt of our stock from counterparties under our purchased call options when and if our stock price is between $52.18 and $66.79 would be anti-dilutive and excluded from any calculations of earnings per share.
(2)
Upon closing of the Acquisition in June 2012, we issued a €500 million Zero Coupon Senior Unsecured Convertible Note due 2013 to the Seller. The impact of a net share settlement of the conversion amount at maturity will begin to dilute earnings per share if and when our stock price reaches $49.71 based on foreign exchange rates at March 30, 2013. See further discussion in Note 12, "Debt."
Goodwill and Intangible Assets (Tables)
The following summarizes the change in goodwill for the first quarter of 2013:
 
Canada
 
Europe
 
MCI
 
Consolidated
 
(In millions)
Balance at December 29, 2012
$
764.0

 
$
1,680.9

 
$
8.2

 
$
2,453.1

Foreign currency translation
(14.0
)
 
(73.1
)
 

 
(87.1
)
Purchase price adjustment

 
(0.3
)
 

 
(0.3
)
Balance at March 30, 2013
$
750.0

 
$
1,607.5

 
$
8.2

 
$
2,365.7


The following table presents details of our intangible assets, other than goodwill, as of March 30, 2013:
 
Useful life
 
Gross
 
Accumulated
amortization
 
Net
 
(Years)
 
(In millions)
Intangible assets subject to amortization:
 
 
 
 
 
 
 
Brands
 3 - 40
 
$
464.1

 
$
(204.0
)
 
$
260.1

Distribution rights
 2 - 23
 
342.5

 
(252.7
)
 
89.8

Patents and technology and distribution channels
 3 - 10
 
33.2

 
(29.4
)
 
3.8

Favorable contracts, land use rights and other
 2 - 42
 
12.2

 
(6.3
)
 
5.9

Intangible assets not subject to amortization:
 
 
 
 
 
 
 
Brands
 Indefinite
 
5,659.0

 

 
5,659.0

Distribution networks
 Indefinite
 
994.3

 

 
994.3

Other
 Indefinite
 
15.4

 

 
15.4

Total
 
 
$
7,520.7

 
$
(492.4
)
 
$
7,028.3



The following table presents details of our intangible assets, other than goodwill, as of December 29, 2012:
 
Useful life
 
Gross
 
Accumulated
amortization
 
Net
 
(Years)
 
(In millions)
Intangible assets subject to amortization:
 
 
 
 
 
 
 
Brands
3 - 40
 
$
480.6

 
$
(205.7
)
 
$
274.9

Distribution rights
2 - 23
 
350.8

 
(255.0
)
 
95.8

Patents and technology and distribution channels
3 - 10
 
35.3

 
(31.1
)
 
4.2

Favorable contracts, land use rights and other
2 - 42
 
13.6

 
(5.4
)
 
8.2

Intangible assets not subject to amortization:
 
 
 
 
 
 
 
Brands
Indefinite
 
5,821.6

 

 
5,821.6

Distribution networks
Indefinite
 
1,014.7

 

 
1,014.7

Other
Indefinite
 
15.4

 

 
15.4

Total
 
 
$
7,732.0

 
$
(497.2
)
 
$
7,234.8

Based on foreign exchange rates as of March 30, 2013, the estimated future amortization expense of intangible assets is as follows:
Fiscal year
Amount
 
(In millions)
2013 - remaining
$
34.9

2014
$
38.7

2015
$
36.2

2016
$
36.2

2017
$
22.3

Debt (Tables)
Total long-term borrowings
Our total borrowings as of March 30, 2013, and December 29, 2012, were composed of the following:
 
As of
 
March 30, 2013
 
December 29, 2012
 
(In millions)
Senior notes:
 
 
 
$575 million 2.5% convertible notes due 2013(1)
$
575.0

 
$
575.0

€500 million 0.0% convertible note due 2013(2)
678.3

 
668.7

Canadian Dollar ("CAD") 900 million 5.0% notes due 2015
884.6

 
902.7

CAD 500 million 3.95% Series A notes due 2017
491.5

 
501.5

$300 million 2.0% notes due 2017
300.0

 
300.0

$500 million 3.5% notes due 2022
500.0

 
500.0

$1.1 billion 5.0% notes due 2042
1,100.0

 
1,100.0

€120 million term loan due 2016
120.1

 
123.9

Other long-term debt
0.4

 
0.5

Commercial Paper(3)

 

Credit facilities(3)

 

Less: unamortized debt discounts and other
(12.0
)
 
(17.4
)
Total long-term debt (including current portion)
4,637.9

 
4,654.9

Less: current portion of long-term debt
(1,247.1
)
 
(1,232.4
)
Total long-term debt
$
3,390.8

 
$
3,422.5

 
 
 
 
Short-term borrowings
$
13.3

 
$
13.2

Current portion of long-term debt
1,247.1

 
1,232.4

Current portion of long-term debt and short-term borrowings
$
1,260.4

 
$
1,245.6


(1)
The original conversion price for each $1,000 aggregate principal amount of notes was $54.76 per share of our Class B common stock, which represented a 25% premium above the stock price on the day of issuance of the notes and corresponded to the initial conversion ratio of 18.263 shares per each $1,000 aggregate principal amount of notes. The conversion ratio and conversion price are subject to adjustments for certain events and provisions, as defined in the indenture, including adjustments reflected for exceeding defined thresholds related to our dividend payments. As of November 2012, our conversion price and ratio are $52.18 and 19.1662 shares, respectively. As of March 30, 2013, the convertible debt's if-converted value does not exceed the principal.
During the first quarters of 2013 and 2012, we incurred additional non-cash interest expense of $4.6 million and $4.5 million, respectively. We also incurred interest expense related to the 2.5% convertible coupon rate of $3.6 million and $3.7 million during the first quarters of 2013 and 2012, respectively. The combination of non-cash and cash interest resulted in an effective interest rate of 5.8% and 5.9% for the first quarters of 2013 and 2012, respectively. As of March 30, 2013, and December 29, 2012, $6.2 million and $10.8 million, respectively, of the unamortized debt discount and other balance relates to our $575 million convertible debt. We expect to record additional non-cash interest expense of $6.2 million during the remainder of 2013, thereby increasing the carrying value of the convertible debt to its $575 million face value at maturity in July 2013. As the notes mature in July 2013, the carrying value at March 30, 2013, is included within the current portion of long-term debt.
(2)
On June 15, 2012, we issued a €500 million Zero Coupon Senior Unsecured Convertible Note due 2013 (the ''Convertible Note'') to the Seller in conjunction with the closing of the Acquisition. The Convertible Note matures on December 31, 2013, and is a senior unsecured obligation guaranteed by MCBC. The Seller has the ability to exercise a put right with respect to the Convertible Note as of March 14, 2013, (the “First Redemption Date”) and ending on December 19, 2013, for the greater of the principal amount of the Convertible Note or the aggregate cash value of 12,894,044 shares of our Class B Common Stock, as adjusted for certain corporate events. The Convertible Note's embedded conversion feature was determined to meet the definition of a derivative required to be bifurcated and separately accounted for at fair value with changes in fair value recorded in earnings. At issuance, we recorded a liability of $15.2 million related to the conversion feature. The Convertible Note was issued at a discount of $1.3 million, which has been recognized as interest expense over the period from issuance to the First Redemption Date. As of March 30, 2013, the carrying value of the Convertible Note is included within the current portion of long-term debt.
The carrying value of the Convertible Note and fair value of the conversion feature at March 30, 2013, were $640.9 million and $37.4 million, respectively. We recognized an unrealized loss of $29.5 million during the first quarter of 2013 related to changes in the fair value of the conversion feature. The non-cash interest, excluding the change in fair value of the convertible feature, resulted in an effective interest rate of 0.25% for the first quarter of 2013. See Note 14, "Derivative Instruments and Hedging Activities" for further discussion of the conversion feature.
(3)
In the first quarter of 2013, a $950 million commercial paper program was approved and implemented. The commercial paper program is supported by our $550 million and $400 million revolving credit facilities. As of March 30, 2013, there were no outstanding borrowings under the commercial paper program.
In the third quarter of 2012, we entered into a revolving credit agreement ("Euro Credit Agreement") to support our operations in Central Europe within our Europe segment. The Euro Credit Agreement provides for a 1-year revolving credit facility of €150 million on an uncommitted basis.
In the second quarter of 2012, we entered into a revolving credit agreement (the ''Credit Agreement''). The Credit Agreement provides for a 4-year revolving credit facility of $550 million. The Credit Agreement contains customary events of default and specified representations and warranties and covenants, including, among other things, covenants that limit our subsidiaries' ability to incur certain additional priority indebtedness, create or permit liens on assets, or engage in mergers or consolidations.
In the second quarter of 2011, 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.
Derivative Instruments and Hedging Activities (Tables)
The table below summarizes our derivative assets and liabilities that were measured at fair value as of March 30, 2013, and December 29, 2012.
 
 
 
Fair value measurements as of March 30, 2013
 
Total at March 30, 2013
 
Quoted prices in
active markets
(Level 1)
 
Significant other
observable inputs
(Level 2)
 
Significant
unobservable
inputs (Level 3)
 
(In millions)
Cross currency swaps
$
(206.2
)
 
$

 
$
(206.2
)
 
$

Foreign currency forwards
(4.0
)
 

 
(4.0
)
 

Commodity swaps
(1.4
)
 

 
(1.4
)
 

Equity conversion feature of debt
(37.4
)
 

 

 
(37.4
)
Total
$
(249.0
)
 
$

 
$
(211.6
)
 
$
(37.4
)
 
 
 
 
Fair value measurements as of December 29, 2012
 
Total at December 29, 2012
 
Quoted prices in
active markets
(Level 1)
 
Significant other
observable inputs
(Level 2)
 
Significant
unobservable
inputs (Level 3)
 
(In millions)
Cross currency swaps
$
(220.4
)
 
$

 
$
(220.4
)
 
$

Foreign currency forwards
(1.7
)
 

 
(1.7
)
 

Commodity swaps
(2.5
)
 

 
(2.5
)
 

Equity conversion feature of debt
(7.9
)
 

 

 
(7.9
)
Total
$
(232.5
)
 
$

 
$
(224.6
)
 
$
(7.9
)
The table below summarizes derivative valuation activity using significant unobservable inputs (Level 3) (in millions):
 
Rollforward of Level 3 Inputs
Total at December 29, 2012
$
(7.9
)
Total losses (realized/unrealized)
 
Included in earnings
(29.5
)
Included in other comprehensive income

Purchases

Sales

Issuances

Settlements

Net transfers in/out of Level 3

Total at March 30, 2013
$
(37.4
)
Unrealized losses for Level 3 assets/liabilities outstanding at March 30, 2013
$
(29.5
)
Quantitative information regarding significant unobservable inputs used for recurring Level 3 fair value measurements of financial instruments carried at fair value, were as follows (in millions):
 
Balance at March 30, 2013
Valuation Technique
Significant Unobservable Input(s)/Sensitivity of the Fair Value to Changes in the Unobservable Inputs
Range
Equity conversion feature of debt
$
(37.4
)
Option model
Implied volatility(1)
21-25%
(1)
Significant increase (decrease) in the unobservable input in isolation would result in a significantly higher (lower) fair value measurement.
Fair Value of Derivative Instruments in the Condensed Consolidated Balance Sheet (in millions, except for certain commodity swaps with notional amounts measured in Metric Tonnes, as noted)
 
March 30, 2013
 
 
 
 
Asset derivatives
 
Liability derivatives
 
Notional amount
 
Balance sheet location
 
Fair value
 
Balance sheet location
 
Fair value
Derivatives designated as hedging instruments:
 
 
 
 
 
 
 
 
Cross currency swaps
CAD
601.3

 
Other non-current assets
 
$

 
Non-current derivative hedging instruments
 
$
(206.2
)
Foreign currency forwards
USD
453.2

 
Other current assets
 
4.7

 
Current derivative hedging instruments
 
(1.1
)
 
 
 
 
Other non-current assets
 
3.2

 
Non-current derivative hedging instruments
 
(0.2
)
Commodity swaps
kWh
485.9

 
Other current assets
 
0.3

 
Current derivative hedging instruments
 
(0.4
)
 
 
 
 
Other non-current assets
 
0.1

 
Non-current derivative hedging instruments
 
(0.1
)
Total derivatives designated as hedging instruments
 
 
 
 
$
8.3

 
 
 
$
(208.0
)
Derivatives not designated as hedging instruments:
 
 
 
 
 
 
 
 
Equity conversion feature of debt
EUR
500.0

 
 
 
 
 
Current portion of long-term debt and short-term borrowings
 
$
(37.4
)
Aluminum swaps
Metric tonnes (actual)
2,075

 
Other current assets
 

 
Current derivative hedging instruments
 
(1.4
)
Diesel swaps
Metric tonnes (actual)
3,977

 
Other current assets
 
0.1

 
Current derivative hedging instruments
 

Foreign currency forwards
EUR
244.0

 
Other current assets
 

 
Current derivative hedging instruments
 
(10.6
)
Total derivatives not designated as hedging instruments
 
 
 
 
$
0.1

 
 
 
$
(49.4
)
Non-derivative financial instruments in net investment hedge relationships:
 
 
 
 
 
 
€120 million term loan due 2016
EUR
93.7

 
 
 
 
 
Long-term debt
 
$
(120.1
)
Total non-derivative financial instruments in net investment hedge relationships
 
 
 
 
 
 
$
(120.1
)

 
December 29, 2012
 
 
 
 
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
601.3
 
Other non-current assets
 
$

 
Non-current derivative hedging instruments
 
$
(220.4
)
Foreign currency forwards
USD
507.3
 
Other current assets
 
2.0

 
Current derivative hedging instruments
 
(3.4
)
 
 
 
 
Other non-current assets
 
1.4

 
Non-current derivative hedging instruments
 
(1.7
)
Commodity swaps
kWh
486.1
 
Other current assets
 

 
Current derivative hedging instruments
 
(1.0
)
 
 
 
 
Other non-current assets
 
0.2

 
Non-current derivative hedging instruments
 
(0.1
)
Total derivatives designated as hedging instruments
 
 
 
 
$
3.6

 
 
 
$
(226.6
)
Derivatives not designated as hedging instruments:
 
 
 
 
 
 
 
 
Equity conversion feature of debt
EUR
500.0

 
 
 
 
 
Current portion of long-term debt and short-term borrowings
 
$
(7.9
)
Aluminum swaps
Metric tonnes (actual)
2,850

 
Other current assets
 
$

 
Current derivative hedging instruments
 
(1.4
)
Diesel swaps
Metric tonnes (actual)
5,493

 
Other current assets
 

 
Current derivative hedging instruments
 
(0.2
)
Total derivatives not designated as hedging instruments
 
 
 
 
$

 
 
 
$
(9.5
)
Non-derivative financial instruments in net investment hedge relationships:
 
 
 
 
 
 
€120 million term loan due 2016
EUR
93.7

 
 
 
 
 
Long-term debt
 
$
(123.9
)
Total non-derivative financial instruments in net investment hedge relationships
 
 
 
 
 
 
$
(123.9
)
The Effect of Derivative Instruments on the Condensed Consolidated Statement of Operations (in millions)
For the Thirteen Weeks Ended March 30, 2013
Derivatives in cash flow hedge relationships
 
Amount of gain
(loss) recognized
in OCI on
derivative
(effective
portion)
 
Location of gain (loss)
reclassified from AOCI into
income (effective portion)
 
Amount of gain
(loss) recognized
from AOCI on
derivative
(effective portion)
 
Location of gain (loss)
recognized in income on
derivative (ineffective portion
and amount excluded from
effectiveness testing)
 
Amount of gain (loss)
recognized in income
on derivative
(ineffective portion and
amount excluded from
effectiveness testing)
Forward starting interest rate swaps
 
$

 
Interest expense, net
 
$
(0.4
)
 
Interest expense, net
 
$

Foreign currency forwards
 
8.9

 
Other income (expense), net
 
(0.1
)
 
Other income (expense), net
 

 
 
 

 
Cost of goods sold
 
0.5

 
Cost of goods sold
 

Commodity swaps
 
0.6

 
Cost of goods sold
 
(0.2
)
 
Cost of goods sold
 

Total
 
$
9.5

 
 
 
$
(0.2
)
 
 
 
$


For the Thirteen Weeks Ended March 30, 2013
Derivatives and non-derivative financial instruments in net investment hedge relationships
 
Amount of gain
(loss) recognized in
OCI (effective portion)
 
Location of gain (loss)
reclassified from AOCI into
income (effective portion)
 
Amount of gain
(loss) recognized
from AOCI
(effective portion)
 
Location of gain (loss)
recognized in income
(ineffective portion
and amount excluded from
effectiveness testing)
 
Amount of gain (loss)
recognized in income
(ineffective portion and
amount excluded from
effectiveness testing)
Cross currency contracts
 
$
14.2

 
Other income (expense), net
 
$

 
Other income (expense), net
 
$

€120 million term loan due 2016
 
3.7

 
Other income (expense), net
 

 
Other income (expense), net
 

Total
 
$
17.9

 
 
 
$

 
 
 
$

Note: Amounts recognized in AOCI related to cash flow and net investment hedges are presented gross of taxes
During the period we recorded no significant ineffectiveness related to these cash flow and net investment hedges.
For the Thirteen Weeks Ended March 31, 2012
Derivatives in cash flow hedge relationships
 
Amount of gain
(loss) recognized
in OCI on
derivative
(effective
portion)
 
Location of gain (loss)
reclassified from AOCI into
income (effective portion)
 
Amount of gain
(loss) recognized
from AOCI on
derivative
(effective portion)
 
Location of gain (loss)
recognized in income on
derivative (ineffective portion
and amount excluded from
effectiveness testing)
 
Amount of gain (loss)
recognized in income
on derivative
(ineffective portion and
amount excluded from
effectiveness testing)
Forward starting interest rate swaps
 
$

 
Interest expense, net
 
$
(0.4
)
 
Interest expense, net
 
$

Foreign currency forwards
 
(8.0
)
 
Other income (expense), net
 
(0.6
)
 
Other income (expense), net
 

 
 
 

 
Cost of goods sold
 
(1.1
)
 
Cost of goods sold
 

Commodity swaps
 
1.3

 
Cost of goods sold
 
(0.3
)
 
Cost of goods sold
 

Total
 
$
(6.7
)
 
 
 
$
(2.4
)
 
 
 
$

For the Thirteen Weeks Ended March 31, 2012
Derivatives and non-derivative financial instruments in net investment hedge relationships
 
Amount of gain
(loss) recognized in
OCI (effective portion)
 
Location of gain (loss)
reclassified from AOCI into
income (effective portion)
 
Amount of gain
(loss) recognized
from AOCI
(effective portion)
 
Location of gain (loss)
recognized in income
(ineffective portion
and amount excluded from
effectiveness testing)
 
Amount of gain (loss)
recognized in income
(ineffective portion and
amount excluded from
effectiveness testing)
Cross currency contracts
 
$
(20.5
)
 
Other income (expense), net
 
$

 
Other income (expense), net
 
$

Total
 
$
(20.5
)
 
 
 
$

 
 
 
$

Note: Amounts recognized in AOCI are presented gross of taxes
During the period we recorded no significant ineffectiveness related to these cash flow hedges.
Other Derivatives (in millions)
For the Thirteen Weeks Ended March 30, 2013
Derivatives not in hedging relationships
 
Location of gain (loss) recognized in
income on derivative
 
Amount of gain (loss) recognized in
income on derivative
Equity conversion feature of debt
 
Interest expense, net
 
$
(29.7
)
 
 
Other income (expense), net
 
0.2

Foreign currency forwards
 
Other income (expense), net
 
(10.6
)
Total
 
 
 
$
(40.1
)
For the Thirteen Weeks Ended March 31, 2012
Derivatives not in hedging relationships
 
Location of gain (loss) recognized in
income on derivative
 
Amount of gain (loss) recognized in
income on derivative
Commodity swaps
 
Cost of goods sold
 
$
0.1

Total
 
 
 
$
0.1

Pension and Other Postretirement Benefits (Tables)
Net periodic pension costs under retirement plans and other post-retirement benefits
Net Periodic Pension and OPEB Cost
 
For the Thirteen Weeks Ended
 
March 30, 2013
 
March 31, 2012
 
Pension
 
OPEB
 
Consolidated
 
Pension
 
OPEB
 
Consolidated
 
(In millions)
Components of net periodic pension and OPEB cost:
 
 
 
 
 
 
 
 
 
 
 
Service cost - benefits earned during the year
$
4.0

 
$
0.9

 
$
4.9

 
$
4.2

 
$
0.7

 
$
4.9

Interest cost on projected benefit obligation
39.4

 
1.8

 
41.2

 
41.1

 
2.0

 
43.1

Expected return on plan assets
(44.7
)
 

 
(44.7
)
 
(43.5
)
 

 
(43.5
)
Amortization of prior service cost (benefit)
0.2

 
(0.9
)
 
(0.7
)
 
0.2

 
(0.9
)
 
(0.7
)
Amortization of net actuarial loss (gain)
14.3

 
(0.1
)
 
14.2

 
9.8

 
(0.1
)
 
9.7

Less: expected participant contributions
(0.3
)
 

 
(0.3
)
 
(0.4
)
 

 
(0.4
)
Net periodic pension and OPEB cost
$
12.9

 
$
1.7

 
$
14.6

 
$
11.4

 
$
1.7

 
$
13.1

Supplemental Guarantor Information Supplemental (Tables)
MOLSON COORS BREWING COMPANY AND SUBSIDIARIES
CONDENSED CONSOLIDATING STATEMENT OF OPERATIONS
FOR THE THIRTEEN WEEKS ENDED MARCH 30, 2013
(IN MILLIONS)
(UNAUDITED)

 
Parent
Guarantor, 2007 and
2012 Issuer
 
Subsidiary
Guarantors
 
Subsidiary
Non
Guarantors
 
Eliminations
 
Consolidated
Sales
$
3.9

 
$
972.8

 
$
240.4

 
$
(32.3
)
 
$
1,184.8

Excise taxes

 
(303.8
)
 
(52.5
)
 

 
(356.3
)
Net sales
3.9

 
669.0

 
187.9

 
(32.3
)
 
828.5

Cost of goods sold

 
(427.7
)
 
(146.7
)
 
27.3

 
(547.1
)
Gross profit
3.9

 
241.3

 
41.2

 
(5.0
)
 
281.4

Marketing, general and administrative expenses
(37.1
)
 
(179.0
)
 
(74.2
)
 
5.0

 
(285.3
)
Special items, net
(0.3
)
 
(0.8
)
 
(0.4
)
 

 
(1.5
)
Equity income (loss) in subsidiaries
103.5

 
(146.4
)
 
41.4

 
1.5

 

Equity income in MillerCoors

 
117.4

 

 

 
117.4

Operating income (loss)
70.0

 
32.5

 
8.0

 
1.5

 
112.0

Interest income (expense), net
(26.0
)
 
48.1

 
(97.0
)
 

 
(74.9
)
Other income (expense), net
(13.6
)
 
30.8

 
(12.9
)
 

 
4.3

Income (loss) from continuing operations before income taxes
30.4

 
111.4

 
(101.9
)
 
1.5

 
41.4

Income tax benefit (expense)
5.2

 
(8.0
)
 
(0.7
)
 

 
(3.5
)
Net income (loss) from continuing operations
35.6

 
103.4

 
(102.6
)
 
1.5

 
37.9

Income (loss) from discontinued operations, net of tax

 

 
(0.9
)
 

 
(0.9
)
Net income (loss) including noncontrolling interests
35.6

 
103.4

 
(103.5
)
 
1.5

 
37.0

Add back (less): Loss (net income) attributable to noncontrolling interests

 

 
(1.4
)
 

 
(1.4
)
Net income (loss) attributable to MCBC
$
35.6

 
$
103.4

 
$
(104.9
)
 
$
1.5

 
$
35.6

Comprehensive income attributable to MCBC
$
(206.2
)
 
$
(119.3
)
 
$
(216.2
)
 
$
335.5

 
$
(206.2
)
MOLSON COORS BREWING COMPANY AND SUBSIDIARIES
CONDENSED CONSOLIDATING STATEMENT OF OPERATIONS
FOR THE THIRTEEN WEEKS ENDED MARCH 31, 2012
(IN MILLIONS)
(UNAUDITED)

 
Parent
Guarantor, 2007 and
2012 Issuer
 
Subsidiary
Guarantors
 
Subsidiary
Non
Guarantors
 
Eliminations
 
Consolidated
Sales
$
5.5

 
$
982.7

 
$
59.7

 
$
(39.8
)
 
$
1,008.1

Excise taxes

 
(303.9
)
 
(12.8
)
 

 
(316.7
)
Net sales
5.5

 
678.8

 
46.9

 
(39.8
)
 
691.4

Cost of goods sold

 
(416.6
)
 
(54.5
)
 
32.3

 
(438.8
)
Gross profit
5.5

 
262.2

 
(7.6
)
 
(7.5
)
 
252.6

Marketing, general and administrative expenses
(34.5
)
 
(202.0
)
 
(19.2
)
 
7.5

 
(248.2
)
Special items, net
(1.1
)
 
(0.4
)
 

 

 
(1.5
)
Equity income (loss) in subsidiaries
85.0

 
(117.6
)
 
26.0

 
6.6

 

Equity income in MillerCoors

 
118.9

 

 

 
118.9

Operating income (loss)
54.9

 
61.1

 
(0.8
)
 
6.6

 
121.8

Interest income (expense), net

 
74.1

 
(97.9
)
 

 
(23.8
)
Other income (expense), net
12.0

 
(12.6
)
 
(0.8
)
 

 
(1.4
)
Income (loss) from continuing operations before income taxes
66.9

 
122.6

 
(99.5
)
 
6.6

 
96.6

Income tax benefit (expense)
12.6

 
(37.7
)
 
7.8

 

 
(17.3
)
Net income (loss) from continuing operations
79.5

 
84.9

 
(91.7
)
 
6.6

 
79.3

Income (loss) from discontinued operations, net of tax

 

 
0.1

 

 
0.1

Net income (loss) including noncontrolling interests
79.5

 
84.9

 
(91.6
)
 
6.6

 
79.4

Add back (less): Loss (net income) attributable to noncontrolling interests

 

 
0.1

 

 
0.1

Net income (loss) attributable to MCBC
$
79.5

 
$
84.9

 
$
(91.5
)
 
$
6.6

 
$
79.5

Comprehensive income attributable to MCBC
$
190.6

 
$
219.4

 
$
(100.6
)
 
$
(118.8
)
 
$
190.6

MOLSON COORS BREWING COMPANY AND SUBSIDIARIES
CONDENSED CONSOLIDATING BALANCE SHEETS
AS OF MARCH 30, 2013
(IN MILLIONS)
(UNAUDITED)
 
Parent
Guarantor, 2007 and
2012 Issuer
 
Subsidiary
Guarantors
 
Subsidiary
Non
Guarantors
 
Eliminations
 
Consolidated
Assets
 
 
 
 
 
 
 
 
 
Current assets:
 
 
 
 
 
 
 
 
 
Cash and cash equivalents
$
107.8

 
$
259.3

 
$
144.4

 
$

 
$
511.5

Accounts receivable, net
1.4

 
433.2

 
137.6

 

 
572.2

Other receivables, net
69.2

 
50.6

 
18.2

 

 
138.0

Total inventories, net

 
207.6

 
50.0

 

 
257.6

Other assets, net
8.9

 
83.7

 
48.9

 

 
141.5

Deferred tax assets

 

 
70.4

 
(1.5
)
 
68.9

Intercompany accounts receivable

 
1,910.0

 
804.4

 
(2,714.4
)
 

Total current assets
187.3

 
2,944.4

 
1,273.9

 
(2,715.9
)
 
1,689.7

Properties, net
24.3

 
1,282.2

 
619.0

 

 
1,925.5

Goodwill

 
1,018.2

 
1,347.5

 

 
2,365.7

Other intangibles, net

 
4,476.7

 
2,551.6

 

 
7,028.3

Investment in MillerCoors

 
2,530.4

 

 

 
2,530.4

Net investment in and advances to subsidiaries
10,346.2

 
2,802.9

 
5,929.1

 
(19,078.2
)
 

Deferred tax assets
68.7

 
151.9

 
0.8

 
(31.6
)
 
189.8

Other assets, net
38.0

 
122.5

 
52.8

 

 
213.3

Total assets
$
10,664.5

 
$
15,329.2

 
$
11,774.7

 
$
(21,825.7
)
 
$
15,942.7

Liabilities and equity
 
 
 
 
 
 
 
 
 
Current liabilities:
 
 
 
 
 
 
 
 
 
Accounts payable
$
7.1

 
$
268.5

 
$
179.9

 
$

 
$
455.5

Accrued expenses and other liabilities
59.1

 
501.0

 
148.4

 

 
708.5

Derivative hedging instruments
10.6

 
2.8

 
0.1

 

 
13.5

Deferred tax liability
12.4

 
156.9

 
1.1

 
(1.5
)
 
168.9

Current portion of long-term debt and short-term borrowings
568.8

 
678.3

 
13.3

 

 
1,260.4

Discontinued operations

 

 
8.0

 

 
8.0

Intercompany accounts payable
1,170.9

 
812.8

 
730.7

 
(2,714.4
)
 

Total current liabilities
1,828.9

 
2,420.3

 
1,081.5

 
(2,715.9
)
 
2,614.8

Long-term debt
1,895.7

 
1,374.5

 
120.6

 

 
3,390.8

Pension and post-retirement benefits
3.4

 
766.7

 
6.5

 

 
776.6

Derivative hedging instruments

 
206.5

 

 

 
206.5

Deferred tax liability

 

 
998.0

 
(31.6
)
 
966.4

Other liabilities, net
9.8

 
57.3

 
103.3

 

 
170.4

Discontinued operations

 

 
20.3

 

 
20.3

Intercompany notes payable

 
1,067.9

 
6,810.7

 
(7,878.6
)
 

Total liabilities
3,737.8

 
5,893.2

 
9,140.9

 
(10,626.1
)
 
8,145.8

MCBC stockholders' equity
7,771.1

 
15,603.8

 
3,474.4

 
(19,078.2
)
 
7,771.1

Intercompany notes receivable
(844.4
)
 
(6,167.8
)
 
(866.4
)
 
7,878.6

 

Total stockholders' equity
6,926.7

 
9,436.0

 
2,608.0

 
(11,199.6
)
 
7,771.1

Noncontrolling interests

 

 
25.8

 

 
25.8

Total equity
6,926.7

 
9,436.0

 
2,633.8

 
(11,199.6
)
 
7,796.9

Total liabilities and equity
$
10,664.5

 
$
15,329.2

 
$
11,774.7

 
$
(21,825.7
)
 
$
15,942.7

MOLSON COORS BREWING COMPANY AND SUBSIDIARIES
CONDENSED CONSOLIDATING BALANCE SHEETS
AS OF DECEMBER 29, 2012
(IN MILLIONS)
(UNAUDITED)
 
Parent
Guarantor, 2007 and
2012 Issuer
 
Subsidiary
Guarantors
 
Subsidiary
Non
Guarantors
 
Eliminations
 
Consolidated
Assets
 
 
 
 
 
 
 
 
 
Current assets:
 
 
 
 
 
 
 
 
 
Cash and cash equivalents
$
189.8

 
$
249.3

 
$
184.9

 
$

 
$
624.0

Accounts receivable, net
1.7

 
524.7

 
134.1

 

 
660.5

Other receivables, net
22.7

 
54.6

 
15.6

 

 
92.9

Total inventories, net

 
172.5

 
41.4

 

 
213.9

Other assets, net
10.7

 
67.1

 
39.7

 

 
117.5

Deferred tax assets

 

 
40.7

 
(1.5
)
 
39.2

Intercompany accounts receivable

 
2,077.8

 
1,137.5

 
(3,215.3
)
 

Total current assets
224.9

 
3,146.0

 
1,593.9

 
(3,216.8
)
 
1,748.0

Properties, net
25.1

 
1,338.9

 
631.9

 

 
1,995.9

Goodwill

 
1,068.5

 
1,384.6

 

 
2,453.1

Other intangibles, net

 
4,606.8

 
2,628.0

 

 
7,234.8

Investment in MillerCoors

 
2,431.8

 

 

 
2,431.8

Net investment in and advances to subsidiaries
10,465.2

 
2,291.6

 
5,291.7

 
(18,048.5
)
 

Deferred tax assets
47.4

 
104.8

 
4.9

 
(31.7
)
 
125.4

Other assets
38.6

 
125.0

 
59.6

 

 
223.2

Total assets
$
10,801.2

 
$
15,113.4

 
$
11,594.6

 
$
(21,297.0
)
 
$
16,212.2

Liabilities and equity
 
 
 
 
 
 
 
 
 
Current liabilities:
 
 
 
 
 
 
 
 
 
Accounts payable
$
6.9

 
$
250.4

 
$
169.7

 
$

 
$
427.0

Accrued expenses and other liabilities
57.1

 
537.3

 
165.5

 

 
759.9

Derivative hedging instruments

 
6.0

 

 

 
6.0

Deferred tax liability
11.3

 
142.5

 

 
(1.5
)
 
152.3

Current portion of long-term debt and short-term borrowings
564.2

 
668.3

 
13.1

 

 
1,245.6

Discontinued operations

 

 
7.9

 

 
7.9

Intercompany accounts payable
1,166.3

 
1,133.3

 
915.7

 
(3,215.3
)
 

Total current liabilities
1,805.8

 
2,737.8

 
1,271.9

 
(3,216.8
)
 
2,598.7

Long-term debt
1,895.6

 
1,402.5

 
124.4

 

 
3,422.5

Pension and post-retirement benefits
3.3

 
823.1

 
6.6

 

 
833.0

Derivative hedging instruments

 
222.2

 

 

 
222.2

Deferred tax liability

 

 
980.2

 
(31.7
)
 
948.5

Other liabilities, net
6.6

 
64.4

 
104.7

 

 
175.7

Discontinued operations

 

 
20.0

 

 
20.0

Intercompany notes payable

 
1,135.8

 
6,971.9

 
(8,107.7
)
 

Total liabilities
3,711.3

 
6,385.8

 
9,479.7

 
(11,356.2
)
 
8,220.6

MCBC stockholders' equity
7,966.9

 
15,036.7

 
3,011.8

 
(18,048.5
)
 
7,966.9

Intercompany notes receivable
(877.0
)
 
(6,309.1
)
 
(921.6
)
 
8,107.7

 

Total stockholders' equity
7,089.9

 
8,727.6

 
2,090.2

 
(9,940.8
)
 
7,966.9

Noncontrolling interests

 

 
24.7

 

 
24.7

Total equity
7,089.9

 
8,727.6

 
2,114.9

 
(9,940.8
)
 
7,991.6

Total liabilities and equity
$
10,801.2

 
$
15,113.4

 
$
11,594.6

 
$
(21,297.0
)
 
$
16,212.2

MOLSON COORS BREWING COMPANY AND SUBSIDIARIES
CONDENSED CONSOLIDATING STATEMENT OF CASH FLOWS
FOR THE THIRTEEN WEEKS ENDED MARCH 31, 2012
(IN MILLIONS)
(UNAUDITED)

 
Parent
Guarantor, 2007 and
2012 Issuer
 
Subsidiary
Guarantors
 
Subsidiary
Non
Guarantors
 
Eliminations
 
Consolidated
Net cash (used in) provided by operating activities
$
155.3

 
$
(214.6
)
 
$
111.3

 
$
(1.6
)
 
$
50.4

CASH FLOWS FROM INVESTING ACTIVITIES:
 
 
 
 
 
 
 
 
 
Additions to properties
(1.1
)
 
(29.6
)
 
(3.1
)
 

 
(33.8
)
Proceeds from sales of properties and intangible assets

 
0.8

 

 

 
0.8

Investment in MillerCoors

 
(236.0
)
 

 

 
(236.0
)
Return of capital from MillerCoors

 
124.6

 

 

 
124.6

Payments on settlement of derivative instruments

 
(110.6
)
 

 

 
(110.6
)
Investment in and advances to an unconsolidated affiliate

 
(2.5
)
 
(2.1
)
 

 
(4.6
)
Trade loan repayments from customers

 
3.8

 

 

 
3.8

Trade loans advanced to customers

 
(2.4
)
 

 

 
(2.4
)
Net intercompany investing activity
(39.9
)
 
116.4

 

 
(76.5
)
 

Net cash provided by (used in) investing activities
(41.0
)
 
(135.5
)
 
(5.2
)
 
(76.5
)
 
(258.2
)
CASH FLOWS FROM FINANCING ACTIVITIES:
 

 
 

 
 

 
 

 
 

Exercise of stock options under equity compensation plans
19.7

 

 

 

 
19.7

Excess tax benefits from share-based compensation
3.3

 

 

 

 
3.3

Dividends paid
(57.8
)
 
(1.6
)
 

 
1.6

 
(57.8
)
Dividends paid to noncontrolling interest holders

 
(1.7
)
 

 

 
(1.7
)
Payments on long-term debt and capital lease obligations

 
(0.1
)
 

 

 
(0.1
)
Payments on short-term borrowings

 

 
(10.8
)
 

 
(10.8
)
Net (payments) proceeds from revolving credit facilities

 

 
1.5

 

 
1.5

Net intercompany financing activity

 
39.7

 
(116.2
)
 
76.5

 

Net cash provided by (used in) financing activities
(34.8
)
 
36.3

 
(125.5
)
 
78.1

 
(45.9
)
CASH AND CASH EQUIVALENTS:
 
 
 
 
 
 
 
 
 
Net increase (decrease) in cash and cash equivalents
79.5

 
(313.8
)
 
(19.4
)
 

 
(253.7
)
Effect of foreign exchange rate changes on cash and cash equivalents

 
10.2

 
0.9

 

 
11.1

Balance at beginning of year
601.1

 
422.5

 
55.3

 

 
1,078.9

Balance at end of period
$
680.6

 
$
118.9

 
$
36.8

 
$

 
$
836.3

MOLSON COORS BREWING COMPANY AND SUBSIDIARIES
CONDENSED CONSOLIDATING STATEMENT OF CASH FLOWS
FOR THE THIRTEEN WEEKS ENDED MARCH 30, 2013
(IN MILLIONS)
(UNAUDITED)

 
Parent
Guarantor, 2007 and
2012 Issuer
 
Subsidiary
Guarantors
 
Subsidiary
Non
Guarantors
 
Eliminations
 
Consolidated
Net cash provided by (used in) operating activities
$
(58.0
)
 
$
174.6

 
$
2.5

 
$
(0.7
)
 
$
118.4

CASH FLOWS FROM INVESTING ACTIVITIES:
 
 
 
 
 
 
 
 
 
Additions to properties
(1.6
)
 
(30.2
)
 
(36.5
)
 

 
(68.3
)
Proceeds from sales of properties and intangible assets

 
1.2

 
2.5

 

 
3.7

Investment in MillerCoors

 
(331.8
)
 

 

 
(331.8
)
Return of capital from MillerCoors

 
222.4

 

 

 
222.4

Trade loan repayments from customers

 
2.6

 

 

 
2.6

Trade loans advanced to customers

 
(2.5
)
 

 

 
(2.5
)
Net intercompany investing activity

 
(9.4
)
 

 
9.4

 

Net cash provided by (used in) investing activities
(1.6
)
 
(147.7
)
 
(34.0
)
 
9.4

 
(173.9
)
CASH FLOWS FROM FINANCING ACTIVITIES:
 
 
 
 
 
 
 
 
 
Exercise of stock options under equity compensation plans
27.2

 

 

 

 
27.2

Excess tax benefits from share-based compensation
1.6

 

 

 

 
1.6

Dividends paid
(51.2
)
 

 
(7.7
)
 
0.7

 
(58.2
)
Payments for purchase of noncontrolling interest

 

 
(0.2
)
 

 
(0.2
)
Proceeds from short-term borrowings

 

 
5.9

 

 
5.9

Payments on short-term borrowings

 

 
(13.8
)
 

 
(13.8
)
Net (payments) proceeds from revolving credit facilities

 

 
(1.2
)
 

 
(1.2
)
Change in overdraft balances and other

 
(0.2
)
 
3.7

 

 
3.5

Net intercompany financing activity

 

 
9.4

 
(9.4
)
 

Net cash provided by (used in) financing activities
(22.4
)
 
(0.2
)
 
(3.9
)
 
(8.7
)
 
(35.2
)
CASH AND CASH EQUIVALENTS:
 
 
 
 
 
 
 
 
 
Net increase (decrease) in cash and cash equivalents
(82.0
)
 
26.7

 
(35.4
)
 

 
(90.7
)
Effect of foreign exchange rate changes on cash and cash equivalents

 
(16.7
)
 
(5.1
)
 

 
(21.8
)
Balance at beginning of year
189.8

 
249.3

 
184.9

 

 
624.0

Balance at end of period
$
107.8

 
$
259.3

 
$
144.4

 
$

 
$
511.5

Accumulated Other Comprehensive Income (Loss) (Tables)
Changes in accumulated other comprehensive income (loss) for the first quarter of 2013 were as follows:
 
MCBC shareholders
 
Foreign
currency
translation
adjustments
 
Gain (loss) on
derivative
instruments
 
Pension and
postretirement
benefit
adjustments
 
Equity method
investments
 
Accumulated
other
comprehensive
income (loss)
 
(In millions)
As of December 29, 2012
$
1,187.5

 
$
(17.7
)
 
$
(844.1
)
 
$
(398.0
)
 
$
(72.3
)
Foreign currency translation adjustments
(268.7
)
 

 

 

 
(268.7
)
Unrealized gain (loss) on derivative instruments

 
23.7

 

 

 
23.7

Reclassification of derivative losses to income

 
0.2

 

 

 
0.2

Amortization of net prior service costs and net actuarial losses to income

 

 
13.5

 

 
13.5

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

 

 

 
(10.8
)
 
(10.8
)
Tax adjustment related to investment in MillerCoors AOCI reclassification(1)

 

 

 
34.3

 
34.3

Tax benefit (expense)
7.4

 
(10.7
)
 
(0.5
)
 
4.1

 
0.3

As of March 30, 2013
$
926.2

 
$
(4.5
)
 
$
(831.1
)
 
$
(370.4
)
 
$
(279.8
)
(1)
During the first quarter of 2013 we recorded a tax adjustment related to the reclassification of amounts from the investment in MillerCoors to AOCI that was recorded in the fourth quarter of 2012, to reflect our proportional share of MillerCoors AOCI at formation. We made this reclassification in 2012 as we believe the new presentation provides improved transparency of our share of MillerCoors AOCI. This tax adjustment, which should have been made in 2012 with the reclassification, was not material to either the current or prior period financial statements taken as a whole and therefore prior periods do not reflect the adjustment.
Reclassifications from AOCI to income for the first quarter of 2013 were as follows:
 
 
Reclassifications from AOCI
 
Location of gain (loss)
recognized in income
 
 
(In millions)
 
 
Gains/(losses) on cash flow hedges:
 
 
 
 
Forward starting interest rate swaps
 
$
(0.4
)
 
Interest expense, net
Foreign currency forwards
 
(0.1
)
 
Other income (expense), net
Foreign currency forwards
 
0.5

 
Cost of goods sold
Commodity swaps
 
(0.2
)
 
Cost of goods sold
Total income (loss) reclassified, before tax
 
(0.2
)
 
 
Income tax benefit (expense)
 
0.1

 
 
Net income (loss) reclassified, net of tax
 
$
(0.1
)
 
 
 
 
 
 
 
Amortization of defined benefit pension and other postretirement benefit plan items:
 
 
 
 
Prior service benefit (cost)
 
$
0.7

 
(1)
Net actuarial gains (losses)
 
(14.2
)
 
(1)
Total income (loss) reclassified, before tax
 
(13.5
)
 
 
Income tax benefit (expense)
 
2.9

 
 
Net income (loss) reclassified, net of tax
 
$
(10.6
)
 
 
 
 
 
 
 
Total income (loss) reclassified, net of tax
 
$
(10.7
)
 
 
(1)
These components of AOCI are included in the computation of net periodic pension and other postretirement benefit cost. See Note 15, "Pension and Other Postretirement Benefits" for additional details.
Basis of Presentation and Summary of Significant Accounting Policies Narrative (Details)
3 Months Ended
Mar. 30, 2013
weeks
Minimum [Member]
 
Number of Weeks in Reporting Period
13 
Number of Weeks in Fiscal Year, Range (in weeks)
52 
Maximum [Member]
 
Number of Weeks in Reporting Period
13 
Number of Weeks in Fiscal Year, Range (in weeks)
53 
Acquisition of Molson Coors Central Europe - General (Details) (StarBev L.P. (MCCE) [Member])
In Millions, unless otherwise specified
3 Months Ended
Mar. 30, 2013
USD ($)
Mar. 31, 2012
USD ($)
Jun. 15, 2012
USD ($)
Jun. 15, 2012
EUR (€)
Business Acquisition [Line Items]
 
 
 
 
Business acquisition, cost of acquired entity, liabilities incurred
 
 
$ 3,400 
€ 2,700 
Business acquisition-related costs
$ 1.8 
$ 6.1 
 
 
Acquisition of Molson Coors Central Europe - Pro Forma Results (Details) (USD $)
In Millions, except Per Share data, unless otherwise specified
0 Months Ended 3 Months Ended
Jun. 30, 2012
Mar. 30, 2013
Mar. 31, 2012
Business Acquisition [Line Items]
 
 
 
Net sales
 
$ 828.5 
$ 691.4 
Income tax expense
 
41.4 
96.6 
Molson Coors Central Europe (MCCE)
 
 
 
Business Acquisition [Line Items]
 
 
 
Business acquisition-related costs
 
1.8 
6.1 
Net sales
141.4 
 
 
Income tax expense
(11.0)
 
 
Business Acquisition, Pro Forma Information
 
 
 
Net sales, pro forma
 
 
830.8 
Inome (loss) from continuing operations before income taxes, pro forma
 
 
68.5 
Net income (loss) attributable to MCBC, pro forma
 
 
58.5 
Net income per common share attributable to MCBC, Basic, pro forma
 
 
$ 0.32 
Net income per common share attributable to MCBC, Diluted, pro forma
 
 
$ 0.32 
Europe [Member]
 
 
 
Business Acquisition [Line Items]
 
 
 
Net sales
 
406.4 
263.4 
Income tax expense
 
(3.7)
1.3 
Europe [Member] |
Molson Coors Central Europe (MCCE)
 
 
 
Business Acquisition [Line Items]
 
 
 
Net sales
135.1 
 
 
Income tax expense
(13.6)
 
 
Pro Forma Adjustment [Member]
 
 
 
Business Acquisition [Line Items]
 
 
 
Business acquisition-related costs
 
$ 6.1 
 
Acquisition of Molson Coors Central Europe - Fair Value of Consideration Transferred (Details)
In Millions, unless otherwise specified
3 Months Ended 0 Months Ended
Mar. 30, 2013
USD ($)
Mar. 31, 2012
USD ($)
Jun. 15, 2012
Molson Coors Central Europe (MCCE)
USD ($)
Jun. 15, 2012
Molson Coors Central Europe (MCCE)
EUR (€)
Jun. 29, 2012
Molson Coors Central Europe (MCCE)
Subordinated Deferred Payment Obligation, Including Interest and Other Costs [Member]
USD ($)
Jun. 15, 2012
Molson Coors Central Europe (MCCE)
Subordinated Deferred Payment Obligation, Including Interest and Other Costs [Member]
USD ($)
Jun. 15, 2012
Molson Coors Central Europe (MCCE)
Senior Debt Facilities [Member]
EUR (€)
Mar. 30, 2013
Molson Coors Central Europe (MCCE)
Convertible, Unsecured Debt [Member]
Zero Coupon Senior Unsecured Note [Member]
Jun. 15, 2012
Molson Coors Central Europe (MCCE)
Convertible, Unsecured Debt [Member]
Zero Coupon Senior Unsecured Note [Member]
EUR (€)
Business Acquisition, Cost of Acquired Entity, Purchase Price [Abstract]
 
 
 
 
 
 
 
 
 
Business acquisition, cost of acquired entity, liabilities incurred
 
 
$ 3,400 
€ 2,700 
 
 
€ 500 
 
€ 500 
Business Combination Recognized Identifiable Assets Acquired And Liabilities Assumed Total Liabilities Assumed
 
 
1,277.6 
 
 
423.4 
 
 
 
Repayments of assumed debt
 
 
 
 
425.7 
 
 
 
 
Debt instrument, interest rate percentage
 
 
 
 
 
 
 
0.00% 
 
Statements of Cash Flow Information, Business Acquisition
 
 
 
 
 
 
 
 
 
Financing activities
$ (3.5)
$ 0 
 
 
 
 
 
 
 
Acquisition of Molson Coors Central Europe - Allocation of Consideration Transferred (Details) (USD $)
In Millions, unless otherwise specified
0 Months Ended
Mar. 30, 2013
Dec. 29, 2012
Jun. 15, 2012
Molson Coors Central Europe (MCCE)
Jun. 29, 2012
Molson Coors Central Europe (MCCE)
Subordinated Deferred Payment Obligation, Including Interest and Other Costs [Member]
Jun. 15, 2012
Molson Coors Central Europe (MCCE)
Subordinated Deferred Payment Obligation, Including Interest and Other Costs [Member]
Business Acquisition, Purchase Price Allocation
 
 
 
 
 
Cash and cash equivalents
 
 
$ 143.6 
 
 
Current assets
 
 
263.5 1
 
 
Properties, net
 
 
571.5 
 
 
Other intangibles, net
 
 
2,438.6 2
 
 
Other assets
 
 
36.7 
 
 
Total assets acquired
 
 
3,453.9 
 
 
Current liabilities
 
 
848.8 3
 
 
Non-current liabilities
 
 
428.8 4
 
 
Total liabilities assumed
 
 
1,277.6 
 
423.4 
Total identifiable net assets
 
 
2,176.3 
 
 
Noncontrolling interest measured at fair value
 
 
40.6 
 
 
Goodwill
2,365.7 
2,453.1 
911.2 5
 
 
Total purchase price
 
 
3,046.9 
 
 
Business acquisition, assets assumed, net receivables
 
 
167.5 
 
 
Business acquisition, assets assumed, inventory
 
 
57.3 
 
 
Repayments of assumed debt
 
 
 
425.7 
 
Deferred tax liabilities, noncurrent
$ 966.4 
$ 948.5 
$ 408.7 
 
 
Segment Reporting Net Sales (Details) (USD $)
In Millions, unless otherwise specified
3 Months Ended
Mar. 30, 2013
Mar. 31, 2012
Segment Reporting
 
 
Net sales
$ 828.5 
$ 691.4 
Maximum percentage of sales accounted for by a single customer (as a percent)
10.00% 
 
Canada [Member]
 
 
Segment Reporting
 
 
Net sales
395.6 
402.3 
Europe [Member]
 
 
Segment Reporting
 
 
Net sales
406.4 
263.4 
MCI
 
 
Segment Reporting
 
 
Net sales
27.0 
28.1 
Corporate
 
 
Segment Reporting
 
 
Net sales
0.3 
0.3 
Intersegment sales elimination
 
 
Segment Reporting
 
 
Net sales
$ (0.8)1
$ (2.7)1
Segment Reporting Income (Loss) From Continuing Operations (Details) (USD $)
In Millions, unless otherwise specified
3 Months Ended
Mar. 30, 2013
Mar. 31, 2012
Segment Reporting
 
 
Income (loss) from continuing operations before income taxes
$ 41.4 
$ 96.6 
Canada [Member]
 
 
Segment Reporting
 
 
Income (loss) from continuing operations before income taxes
36.4 
43.9 
U.S.
 
 
Segment Reporting
 
 
Income (loss) from continuing operations before income taxes
117.4 
118.9 
Europe [Member]
 
 
Segment Reporting
 
 
Income (loss) from continuing operations before income taxes
(3.7)
1.3 
MCI
 
 
Segment Reporting
 
 
Income (loss) from continuing operations before income taxes
(6.1)
(8.6)
Corporate
 
 
Segment Reporting
 
 
Income (loss) from continuing operations before income taxes
$ (102.6)1
$ (58.9)1
Segment Reporting Total Assets (Details) (USD $)
In Millions, unless otherwise specified
Mar. 30, 2013
Dec. 29, 2012
Segment Reporting Information [Line Items]
 
 
Total assets
$ 15,942.7 
$ 16,212.2 
Canada [Member]
 
 
Segment Reporting Information [Line Items]
 
 
Total assets
6,375.4 
6,547.1 
U.S.
 
 
Segment Reporting Information [Line Items]
 
 
Total assets
2,530.4 
2,431.8 
Europe [Member]
 
 
Segment Reporting Information [Line Items]
 
 
Total assets
6,464.1 
6,742.4 
MCI
 
 
Segment Reporting Information [Line Items]
 
 
Total assets
91.8 
92.0 
Corporate
 
 
Segment Reporting Information [Line Items]
 
 
Total assets
$ 481.0 
$ 398.9 
Investments Financials (Details) (USD $)
In Millions, unless otherwise specified
3 Months Ended
Mar. 31, 2013
Mar. 30, 2013
Mar. 31, 2012
Dec. 31, 2012
Dec. 29, 2012
Equity Method Investment, Summarized Financial Information, Liabilities and Equity [Abstract]
 
 
 
 
 
Total equity
 
$ 7,796.9 
 
 
$ 7,991.6 
MillerCoors
 
 
 
 
 
Condensed balance sheets
 
 
 
 
 
Current assets
1,026.9 
 
 
 
841.4 
Noncurrent assets
8,931.4 
 
 
 
8,949.9 
Total assets
9,958.3 
 
 
 
9,791.3 
Current liabilities
870.3 
 
 
 
958.5 
Noncurrent liabilities
1,522.5 
 
 
 
1,537.5 
Total liabilities
2,392.8 
 
 
 
2,496.0 
Noncontrolling interests
29.7 
 
 
 
28.4 
Owners' equity
7,535.8 
 
 
 
7,266.9 
Total liabilities and equity
9,958.3 
 
 
 
9,791.3 
Equity Method Investment, Summarized Financial Information, Liabilities and Equity [Abstract]
 
 
 
 
 
Total equity
 
7,535.8 
7,266.9 
 
 
MCBC economic interest
 
42.00% 
42.00% 
 
 
MCBC proportionate share of MillerCoors equity
3,165.0 
 
 
3,052.1 
 
Difference between MCBC contributed cost basis and proportional share of the underlying equity in net assets of MillerCoors
(669.6)1
 
 
(670.8)1
 
Accounting policy elections
 
35.0 
35.0 
 
 
Timing differences of cash contributions and distributions as a result of different calendars
 
15.5 
 
 
Investment in MillerCoors
 
2,530.4 
2,431.8 
 
 
Results of operations
 
 
 
 
 
Net sales
1,788.3 
 
1,759.8 
 
 
Cost of goods sold
(1,088.7)
 
(1,070.0)
 
 
Gross profit
699.6 
 
689.8 
 
 
Operating income
$ 274.5 
 
$ 279.0 
 
 
Investments Proportional (Details) (USD $)
In Millions, unless otherwise specified
3 Months Ended
Mar. 31, 2013
Mar. 30, 2013
Mar. 31, 2012
Schedule of Equity Method Investments [Line Items]
 
 
 
Equity income in MillerCoors
 
$ 117.4 
$ 118.9 
MillerCoors
 
 
 
Schedule of Equity Method Investments [Line Items]
 
 
 
Net income attributable to MillerCoors
271.9 
271.9 
275.3 
MCBC economic interest
 
42.00% 
42.00% 
MCBC proportionate share of MillerCoors net income
 
114.2 
115.6 
Amortization of the difference between MCBC contributed cost basis and proportional share of the underlying equity in the net assets of MillerCoors
 
1.2 
0.4 
Share-based compensation adjustment
 
2.0 1
2.9 1
Equity income in MillerCoors
 
$ 117.4 
$ 118.9 
Investments Transactions with MillerCoors (Details) (MillerCoors, USD $)
In Millions, unless otherwise specified
3 Months Ended
Mar. 30, 2013
Mar. 31, 2012
MillerCoors
 
 
Schedule of Equity Method Investments [Line Items]
 
 
Sales of beer to MillerCoors
$ 4.4 
$ 4.9 
Purchases of beer from MillerCoors
3.1 
2.3 
Service agreement and other charges to MillerCoors
0.6 
1.1 
Service agreement costs from MillerCoors
$ 0.2 
$ 0.2 
Investments Variable Interest Entity (Details) (USD $)
In Millions, unless otherwise specified
Mar. 30, 2013
Dec. 29, 2012
Variable Interest Entity
 
 
Assets
$ 15,942.7 
$ 16,212.2 
Liabilities
8,145.8 
8,220.6 
Grolsch
 
 
Variable Interest Entity
 
 
Assets
6.4 
10.0 
Liabilities
2.0 
5.6 
Cobra
 
 
Variable Interest Entity
 
 
Assets
32.5 
33.2 
Liabilities
$ 2.4 
$ 3.3 
Investments Narrative (Details) (USD $)
In Millions, unless otherwise specified
Mar. 30, 2013
VIE
Dec. 29, 2012
VIE
Schedule of Equity Method Investments [Line Items]
 
 
Number of Variable Interest Entities
MillerCoors
 
 
Schedule of Equity Method Investments [Line Items]
 
 
Net payables due to MillerCoors
$ 0.4 
$ 0.8 
Share-Based Payments Compensation Expense (Details) (Options and SOSARs, USD $)
In Millions, unless otherwise specified
3 Months Ended
Mar. 30, 2013
Mar. 31, 2012
Options and SOSARs
 
 
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
 
 
Pre-tax compensation expense (in dollars)
$ 11.1 
$ 4.8 
Tax benefit (in dollars)
(3.4)
(1.5)
After-tax compensation expense (in dollars)
$ 7.7 
$ 3.3 
Share-Based Payments Stock Options (Details) (Options and Sosars [Member], USD $)
In Millions, except Per Share data, unless otherwise specified
3 Months Ended 12 Months Ended
Mar. 30, 2013
Dec. 29, 2012
Options and Sosars [Member]
 
 
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding [Roll Forward]
 
 
Outstanding at the beginning of the period (in shares)
6.0 
 
Granted (in shares)
0.2 
 
Exercised (in shares)
(0.7)
 
Forfeited (in shares)
 
Outstanding at the end of the period (in shares)
5.5 
6.0 
Exercisable (in shares)
4.8 
 
Weighted-average exercise price of shares outstanding, beginning of the period (in dollars per share)
$ 40.55 
 
Weighted-average exercise price of shares granted (in dollars per share)
$ 45.22 
 
Weighted-average exercise price of shares exercised (in dollars per share)
$ 34.68 
 
Weighted-average exercise price of shares forfeited (in dollars per share)
$ 0.00 
 
Weighted-average exercise price of shares outstanding, end of the period (in dollars per share)
$ 41.57 
$ 40.55 
Weighted-average exercise price of shares exercisable (in dollars per share)
$ 41.24 
 
Weighted-average remaining contractual life, outstanding (in years)
4 years 1 month 10 days 
4 years 0 months 18 days 
Weighted-average remaining contractual life, outstanding (in years)
4 years 1 month 10 days 
4 years 0 months 18 days 
Weighted-average remaining contractual life, exercisable (in years)
3 years 6 months 7 days 
 
Aggregate intrinsic value of shares outstanding (in dollars)
$ 23.2 
 
Aggregate intrinsic value of shares outstanding (in dollars)
44.2 
23.2 
Aggregate intrinsic value of shares exercisable (in dollars)
$ 41.0 
 
Share-Based Payments Non-vested (Details) (USD $)
In Millions, except Per Share data, unless otherwise specified
3 Months Ended
Mar. 30, 2013
Rsus and Dsus [Member]
 
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
 
Non-vested awards outstanding at the beginning of the period (in shares)
0.7 
Granted (in shares)
0.2 
Vested (in shares)
(0.1)
Forfeited (in shares)
(0.1)
Non-vested awards outstanding at the end of the period (in shares)
0.7 
Non-vested, weighted-average grant date fair value at the beginning of the period (in dollars per unit)
$ 43.06 
Granted, weighted-average grant date fair value (in dollars per unit)
$ 41.42 
Vested, weighted-average grant date fair value (in dollars per unit)
$ 43.13 
Forfeited, weighted-average grant date fair value (in dollars per unit)
$ 42.92 
Non-vested, weighted-average grant date fair value at the end of the period (in dollars per unit)
$ 42.64 
PUs [Member]
 
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
 
Non-vested awards outstanding at the beginning of the period (in shares)
1.7 
Granted (in shares)
Vested (in shares)
(0.6)
Forfeited (in shares)
(0.1)
Non-vested awards outstanding at the end of the period (in shares)
1.0 
Non-vested, weighted-average grant date fair value at the beginning of the period (in dollars per unit)
$ 10.90 
Granted, weighted-average grant date fair value (in dollars per unit)
$ 0.00 
Vested, weighted-average grant date fair value (in dollars per unit)
$ 11.64 
Forfeited, weighted-average grant date fair value (in dollars per unit)
$ 7.37 
Non-vested, weighted-average grant date fair value at the end of the period (in dollars per unit)
$ 6.45 
PSUs [Member]
 
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
 
Non-vested awards outstanding at the beginning of the period (in shares)
Granted (in shares)
0.2 
Vested (in shares)
Forfeited (in shares)
Non-vested awards outstanding at the end of the period (in shares)
0.2 
Non-vested, weighted-average grant date fair value at the beginning of the period (in dollars per unit)
$ 0.00 
Granted, weighted-average grant date fair value (in dollars per unit)
$ 43.10 
Vested, weighted-average grant date fair value (in dollars per unit)
$ 0.00 
Forfeited, weighted-average grant date fair value (in dollars per unit)
$ 0.00 
Non-vested, weighted-average grant date fair value at the end of the period (in dollars per unit)
$ 43.10 
Share-Based Payments Weighted Average Assumptions (Details) (Options and Sosars [Member], USD $)
3 Months Ended
Mar. 30, 2013
Mar. 31, 2012
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
 
 
Risk-free interest rate (as a percent)
1.43% 
1.56% 
Dividend yield (as a percent)
2.88% 
2.98% 
Weighted-average volatility (as a percent)
25.02% 
25.84% 
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions, Expected Term
7 years 8 months 12 days 
 
Weighted-average fair market value (in dollars per share)
$ 8.39 
$ 8.18 
Minimum [Member]
 
 
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
 
 
Volatility rate (percent)
22.39% 
25.80% 
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions, Expected Term
 
4 years 
Maximum [Member]
 
 
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
 
 
Volatility rate (percent)
25.90% 
27.56% 
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions, Expected Term
 
7 years 8 months 12 days 
Share-Based Payments Narrative (Details) (USD $)
In Millions, except Per Share data, unless otherwise specified
3 Months Ended
Mar. 30, 2013
Mar. 31, 2012
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
 
 
Total unrecognized compensation expense related to non-vested shares from share-based compensation arrangements (in dollars)
$ 29.0 
 
Weighted-average period over which compensation expense is expected to be recognized (in years)
1 year 8 months 12 days 
 
Proceeds from Stock Plans
27.2 
19.7 
Class B common stock, non-voting [Member]
 
 
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
 
 
Stock approved by Board of Directors and available for issuance (in shares)
7.7 
 
Options and Sosars [Member]
 
 
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
 
 
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercises in Period, Total Intrinsic Value
8.9 
9.4 
Proceeds from Stock Plans
27.2 
19.7 
Expected term
7 years 8 months 12 days 
 
Risk-free interest rate (percent)
1.43% 
1.56% 
Dividend yield (percent)
2.88% 
2.98% 
Rsus and Dsus [Member]
 
 
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
 
 
Grant date fair value
$ 41.42 
 
PUs [Member]
 
 
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
 
 
Grant date fair value
$ 0.00 
 
PSUs [Member]
 
 
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
 
 
Grant date fair value
$ 43.10 
 
Expected term
2 years 9 months 29 days 
 
Volatility rate (percent)
21.13% 
 
Risk-free interest rate (percent)
0.33% 
 
Dividend yield (percent)
2.88% 
 
Minimum [Member] |
Options and Sosars [Member]
 
 
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
 
 
Expected term
 
4 years 
Volatility rate (percent)
22.39% 
25.80% 
Minimum [Member] |
PSUs [Member] |
Volatility Rate Range, Peers [Member]
 
 
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
 
 
Volatility rate (percent)
12.00% 
 
Maximum [Member] |
Options and Sosars [Member]
 
 
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
 
 
Expected term
 
7 years 8 months 12 days 
Volatility rate (percent)
25.90% 
27.56% 
Maximum [Member] |
PSUs [Member] |
Volatility Rate Range, Peers [Member]
 
 
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
 
 
Volatility rate (percent)
69.00% 
 
Gross [Member] |
Options and Sosars [Member]
 
 
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
 
 
Tax Benefit from Stock Options Exercised
$ 1.6 
$ 3.3 
Special items Summary Special Items (Details) (USD $)
3 Months Ended 12 Months Ended
Mar. 30, 2013
Employees
Mar. 31, 2012
Dec. 26, 2009
Restructuring Cost and Reserve [Line Items]
 
 
 
Restructuring Related Reduction in Employees
660 
 
 
Total special items
$ 1,500,000 
$ 1,500,000 
 
Non-income-related Tax Reserves
 
 
10,400,000 
Gain (Loss) Related to Restructuring Reserve Low End of Range
 
 
Gain (Loss) Related to Restructuring Reserve High End of Range
22,300,000 
 
 
Canada [Member] |
Restructuring, exit and other related costs associated with the Edmonton and Montreal breweries
 
 
 
Restructuring Cost and Reserve [Line Items]
 
 
 
Total special items
1,300,000 1
1,600,000 1
 
Canada [Member] |
Special termination benefits
 
 
 
Restructuring Cost and Reserve [Line Items]
 
 
 
Total special items
800,000 2
500,000 2
 
Europe [Member] |
Restructuring charge
 
 
 
Restructuring Cost and Reserve [Line Items]
 
 
 
Total special items
3,300,000 1
1,800,000 1
 
Europe [Member] |
Release of non-income-related tax reserve
 
 
 
Restructuring Cost and Reserve [Line Items]
 
 
 
Total special items
(4,200,000)3
(3,500,000)3
 
Corporate |
Restructuring charge
 
 
 
Restructuring Cost and Reserve [Line Items]
 
 
 
Total special items
$ 300,000 1
$ 1,100,000 1
 
Other Income and Expense (Details) (USD $)
In Millions, unless otherwise specified
3 Months Ended
Mar. 30, 2013
Mar. 31, 2012
Other income and expense:
 
 
Other income (expense), net
$ 4.3 
$ (1.4)
Other Foreign Exchange and Derivative Activity [Member]
 
 
Other income and expense:
 
 
Loss on derivatives, recognized in income
6.8 
1.7 
Sale of Non-operating Asset [Member]
 
 
Other income and expense:
 
 
Other income (expense), net
1.2 1
1
Other Foreign Exchange and Derivative Activity [Member]
 
 
Other income and expense:
 
 
Other income (expense), net
2.7 2
(1.7)2
Other, net
 
 
Other income and expense:
 
 
Other income (expense), net
0.4 
0.3 
Molson Coors Central Europe (MCCE) |
Other Foreign Exchange and Derivative Activity [Member]
 
 
Other income and expense:
 
 
Loss on foreign currency movements
20.1 
 
Molson Coors Central Europe (MCCE) |
Other Foreign Exchange and Derivative Activity [Member] |
Foreign Exchange Contract [Member]
 
 
Other income and expense:
 
 
Unrealized loss on derivative
 
$ (10.6)
Income Tax (Details) (USD $)
In Millions, unless otherwise specified
3 Months Ended
Mar. 30, 2013
Mar. 31, 2012
Dec. 29, 2012
Income Tax
 
 
 
Effective tax rate (as a percent)
8.00% 
18.00% 
 
Uncertain tax benefits
 
 
$ 82.1 
Earnings per Share ("EPS") Basic and Diluted (Details) (USD $)
In Millions, except Per Share data, unless otherwise specified
3 Months Ended
Mar. 30, 2013
Mar. 31, 2012
Amounts attributable to MCBC
 
 
Net income (loss) from continuing operations
$ 36.5 
$ 79.4 
Income (loss) from discontinued operations, net of tax
(0.9)
0.1 
Net income (loss) attributable to Molson Coors Brewing Company
$ 35.6 
$ 79.5 
Weighted average shares for basic EPS (in shares)
181.7 
180.3 
Effect of dilutive securities:
 
 
Weighted average shares for diluted EPS (in shares)
182.9 
181.7 
Basic net income (loss) per share:
 
 
Continuing operations attributable to MCBC (in dollars per share)
$ 0.20 
$ 0.44 
Discontinued operations attributable to MCBC (in dollars per share)
$ 0.00 
$ 0.00 
Net income attributable to MCBC (in dollars per share)
$ 0.20 
$ 0.44 
Diluted net income (loss) per share:
 
 
Continuing operations attributable to MCBC (in dollars per share)
$ 0.20 
$ 0.44 
Discontinued operations attributable to MCBC (in dollars per share)
$ 0.00 
$ 0.00 
Net income attributable to MCBC (in dollars per share)
$ 0.20 
$ 0.44 
Dividends declared per share (in dollars per share)
$ 0.32 
$ 0.32 
Options and Sosars [Member]
 
 
Effect of dilutive securities:
 
 
Effect of dilutive securities of Options, SOSAR's, RSU's, PU's, and DSU's
0.7 
0.8 
RSU PU DSU [Member]
 
 
Effect of dilutive securities:
 
 
Effect of dilutive securities of Options, SOSAR's, RSU's, PU's, and DSU's
0.5 
0.6 
Earnings per Share ("EPS") Antidilutive (Details)
In Millions, except Per Share data, unless otherwise specified
3 Months Ended 3 Months Ended
Mar. 30, 2013
USD ($)
Mar. 31, 2012
Jun. 30, 2007
USD ($)
Mar. 30, 2013
2.5% Convertible Senior Notes [Member]
USD ($)
Mar. 30, 2013
Stock options, SOSARs and RSUs
Mar. 31, 2012
Stock options, SOSARs and RSUs
Mar. 30, 2013
Shares of Class B common stock
2.5% Convertible Senior Notes [Member]
Mar. 31, 2012
Shares of Class B common stock
2.5% Convertible Senior Notes [Member]
Mar. 30, 2013
Shares of Class B common stock
€500 Million Convertible Notes [Member]
Mar. 31, 2012
Shares of Class B common stock
€500 Million Convertible Notes [Member]
Mar. 30, 2013
Warrants to issue shares of Class B common stock
Mar. 31, 2012
Warrants to issue shares of Class B common stock
Jun. 15, 2012
Molson Coors Central Europe (MCCE)
USD ($)
Jun. 15, 2012
Molson Coors Central Europe (MCCE)
EUR (€)
Jun. 15, 2012
Molson Coors Central Europe (MCCE)
2.5% Convertible Senior Notes [Member]
EUR (€)
Mar. 30, 2013
Convertible Senior Notes Due 2013 $575 Million 2.5% [Member]
2.5% Convertible Senior Notes [Member]
USD ($)
Jun. 15, 2007
Convertible Senior Notes Due 2013 $575 Million 2.5% [Member]
2.5% Convertible Senior Notes [Member]
USD ($)
Anti-dilutive securities:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Debt instrument, interest rate percentage
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
2.50% 
2.50% 
Anti-dilutive security (in shares)
22.4 
22.6 
 
 
0.2 
0.8 
11.0 1
10.9 1
0.2 2
2
11.0 1
10.9 1
 
 
 
 
 
Debt instrument, face amount
 
 
$ 575 
 
 
 
 
 
 
 
 
 
 
 
 
$ 575 
$ 575 
Stock price at which impact of net share settlement at conversion will begin to dilute EPS (in dollars per share)
$ 52.18 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Stock price at which impact of net share settlement under warrants will begin to dilute EPS (in dollars per share)
$ 66.79 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Stock price at which receipt of MCBC stock under purchased call options would be anti-dilutive, low end of the range (in dollars per share)
$ 52.18 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Stock price at which receipt of MCBC stock under purchased call options would be anti-dilutive, high end of the range (in dollars per share)
$ 66.79 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Senior convertible notes issued in business acquisition
 
 
 
 
 
 
 
 
 
 
 
 
$ 3,400 
€ 2,700 
€ 500 
 
 
Stock Price at Which Debt Conversion Will Dilute Earnings Per Share
 
 
 
$ 49.71 
 
 
 
 
 
 
 
 
 
 
 
 
 
Goodwill and Intangible Assets (Details) (USD $)
In Millions, unless otherwise specified
3 Months Ended
Mar. 30, 2013
Goodwill activity:
 
Balance at beginning of year
$ 2,453.1 
Foreign currency translation
(87.1)
Purchase price adjustment
(0.3)
Balance at end of year
2,365.7 
Canada [Member]
 
Goodwill activity:
 
Balance at beginning of year
764.0 
Foreign currency translation
(14.0)
Purchase price adjustment
Balance at end of year
750.0 
Europe [Member]
 
Goodwill activity:
 
Balance at beginning of year
1,680.9 
Foreign currency translation
(73.1)
Purchase price adjustment
(0.3)
Balance at end of year
1,607.5 
MCI
 
Goodwill activity:
 
Balance at beginning of year
8.2 
Foreign currency translation
Purchase price adjustment
Balance at end of year
$ 8.2 
Goodwill and Intangible Assets Intangible Assets (Details) (USD $)
In Millions, unless otherwise specified
3 Months Ended 12 Months Ended
Mar. 30, 2013
Dec. 29, 2012
Intangible assets subject to amortization:
 
 
Total Gross
$ 7,520.7 
$ 7,732.0 
Accumulated amortization
(492.4)
(497.2)
Total Net
7,028.3 
7,234.8 
Distribution Networks [Member]
 
 
Intangible assets not subject to amortization:
 
 
Indefinite-lived intangible assets
994.3 
1,014.7 
Brands [Member]
 
 
Intangible assets not subject to amortization:
 
 
Indefinite-lived intangible assets
5,659.0 
5,821.6 
Brands [Member] |
Molson Coors Central Europe (MCCE)
 
 
Intangible assets not subject to amortization:
 
 
Indefinite-lived intangible assets
2,281.0 
 
Other [Member]
 
 
Intangible assets not subject to amortization:
 
 
Indefinite-lived intangible assets
15.4 
15.4 
Brands [Member]
 
 
Intangible assets subject to amortization:
 
 
Gross
464.1 
480.6 
Accumulated amortization
(204.0)
(205.7)
Net
260.1 
274.9 
Brands [Member] |
Molson Coors Central Europe (MCCE)
 
 
Intangible assets subject to amortization:
 
 
Gross
145.6 
 
Useful life - minimum (in years)
30 years 
 
Brands [Member] |
Minimum [Member]
 
 
Intangible assets subject to amortization:
 
 
Useful life - minimum (in years)
3 years 
3 years 
Brands [Member] |
Maximum [Member]
 
 
Intangible assets subject to amortization:
 
 
Useful life - minimum (in years)
40 years 
40 years 
Distribution Rights [Member]
 
 
Intangible assets subject to amortization:
 
 
Gross
342.5 
350.8 
Accumulated amortization
(252.7)
(255.0)
Net
89.8 
95.8 
Distribution Rights [Member] |
Minimum [Member]
 
 
Intangible assets subject to amortization:
 
 
Useful life - minimum (in years)
2 years 
2 years 
Distribution Rights [Member] |
Maximum [Member]
 
 
Intangible assets subject to amortization:
 
 
Useful life - minimum (in years)
23 years 
23 years 
Patents And Technology And Distribution Channels [Member]
 
 
Intangible assets subject to amortization:
 
 
Gross
33.2 
35.3 
Accumulated amortization
(29.4)
(31.1)
Net
3.8 
4.2 
Patents And Technology And Distribution Channels [Member] |
Minimum [Member]
 
 
Intangible assets subject to amortization:
 
 
Useful life - minimum (in years)
3 years 
3 years 
Patents And Technology And Distribution Channels [Member] |
Maximum [Member]
 
 
Intangible assets subject to amortization:
 
 
Useful life - minimum (in years)
10 years 
10 years 
Favorable contracts, land use rights and other [Member]
 
 
Intangible assets subject to amortization:
 
 
Gross
12.2 
13.6 
Accumulated amortization
(6.3)
(5.4)
Net
5.9 
8.2 
Favorable contracts, land use rights and other [Member] |
Molson Coors Central Europe (MCCE)
 
 
Intangible assets subject to amortization:
 
 
Gross
$ 12.0 
 
Useful life - minimum (in years)
1 year 6 months 
 
Favorable contracts, land use rights and other [Member] |
Minimum [Member]
 
 
Intangible assets subject to amortization:
 
 
Useful life - minimum (in years)
2 years 
2 years 
Favorable contracts, land use rights and other [Member] |
Maximum [Member]
 
 
Intangible assets subject to amortization:
 
 
Useful life - minimum (in years)
42 years 
42 years 
Goodwill and Intangible Assets Amortization Expense (Details) (USD $)
In Millions, unless otherwise specified
3 Months Ended 12 Months Ended
Mar. 30, 2013
event
Mar. 31, 2012
Dec. 29, 2012
Estimated amortization expense of finite-lived intangible assets
 
 
 
2012 - remaining
$ 34.9 
 
 
2013
38.7 
 
 
2014
36.2 
 
 
2015
36.2 
 
 
2016
22.3 
 
 
Amortization expense of intangible assets
11.9 
9.3 
 
Indefinite-lived Intangible Assets, Impairment Losses
 
 
Goodwill
2,365.7 
 
2,453.1 
Number of events triggering potential impairment
 
 
Licensing Agreements [Member]
 
 
 
Estimated amortization expense of finite-lived intangible assets
 
 
 
Finite-Lived Intangible Assets, Net
66.4 
 
 
U.K. [Member]
 
 
 
Estimated amortization expense of finite-lived intangible assets
 
 
 
Percentage of fair value exceeding carrying value
7.00% 
 
 
Goodwill
818.1 
 
 
Canada [Member]
 
 
 
Estimated amortization expense of finite-lived intangible assets
 
 
 
Percentage of fair value exceeding carrying value
15.00% 
 
 
Goodwill
750.0 
 
764.0 
Central Europe
 
 
 
Estimated amortization expense of finite-lived intangible assets
 
 
 
Goodwill
789.4 
 
 
Acquired Indefinite-lived Intangible Asset, Amount
2,332.1 
 
 
Molson Core Brands [Member]
 
 
 
Estimated amortization expense of finite-lived intangible assets
 
 
 
Percentage of fair value exceeding carrying value
14.00% 
 
 
Indefinite-lived intangible assets
3,002.3 
 
 
Carling [Member] |
U.K. [Member]
 
 
 
Estimated amortization expense of finite-lived intangible assets
 
 
 
Indefinite-lived intangible assets
$ 304.6 
 
 
Debt Table (Details)
In Millions, unless otherwise specified
Mar. 30, 2013
USD ($)
Dec. 29, 2012
USD ($)
Jun. 30, 2007
USD ($)
Mar. 30, 2013
Senior Notes [Member]
$575 million 2.5% convertible Senior Notes due 2013
USD ($)
Dec. 29, 2012
Senior Notes [Member]
$575 million 2.5% convertible Senior Notes due 2013
USD ($)
Jun. 15, 2007
Senior Notes [Member]
$575 million 2.5% convertible Senior Notes due 2013
USD ($)
Mar. 30, 2013
Senior Notes [Member]
Convertible Senior Unsecured Note Due 2013 €500 Million 0.0% [Member]
USD ($)
Dec. 29, 2012
Senior Notes [Member]
Convertible Senior Unsecured Note Due 2013 €500 Million 0.0% [Member]
USD ($)
Mar. 30, 2013
Senior Notes [Member]
Canadian dollar ("CAD") 900 million 5.0% notes due 2015
USD ($)
Dec. 29, 2012
Senior Notes [Member]
Canadian dollar ("CAD") 900 million 5.0% notes due 2015
USD ($)
Sep. 22, 2005
Senior Notes [Member]
Canadian dollar ("CAD") 900 million 5.0% notes due 2015
USD ($)
Mar. 30, 2013
Senior Notes [Member]
CAD 500 million 3.95% Series A notes due 2017
USD ($)
Dec. 29, 2012
Senior Notes [Member]
CAD 500 million 3.95% Series A notes due 2017
USD ($)
Oct. 6, 2010
Senior Notes [Member]
CAD 500 million 3.95% Series A notes due 2017
USD ($)
Mar. 30, 2013
Senior Notes [Member]
$300 million 2.0% notes due 2017
USD ($)
Dec. 29, 2012
Senior Notes [Member]
$300 million 2.0% notes due 2017
USD ($)
Mar. 30, 2013
Senior Notes [Member]
$500 million 3.5% notes due 2022
USD ($)
Dec. 29, 2012
Senior Notes [Member]
$500 million 3.5% notes due 2022
USD ($)
Mar. 30, 2013
Senior Notes [Member]
$1.1 billion 5.0% notes due 2042
USD ($)
Dec. 29, 2012
Senior Notes [Member]
$1.1 billion 5.0% notes due 2042
USD ($)
May 3, 2012
Senior Notes [Member]
5.0% Interest Rate, Maturing 2042 [Member]
USD ($)
Sep. 22, 2005
Senior Notes [Member]
5.0% Interest Rate, Maturing 2042 [Member]
May 3, 2012
Senior Notes [Member]
2.0% Interest Rate, Maturing 2017 [Member]
USD ($)
May 3, 2012
Senior Notes [Member]
3.5% Interest Rate, Maturing 2022 [Member]
USD ($)
Mar. 30, 2013
Tranch 2 [Member]
Term Loan Agreement [Member]
USD ($)
Dec. 29, 2012
Tranch 2 [Member]
Term Loan Agreement [Member]
USD ($)
Apr. 3, 2012
Tranch 2 [Member]
Term Loan Agreement [Member]
EUR (€)
Mar. 30, 2013
Molson Coors Central Europe (MCCE)
Convertible Debt [Member]
Zero Coupon Senior Unsecured Note [Member]
USD ($)
Jun. 15, 2012
Molson Coors Central Europe (MCCE)
Convertible Debt [Member]
Zero Coupon Senior Unsecured Note [Member]
EUR (€)
Debt Instrument [Line Items]
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Total long-term debt (including current portion) before unamortized discounts and other
 
 
 
$ 575.0 1
$ 575.0 1
 
$ 678.3 2
$ 668.7 2
$ 884.6 
$ 902.7 
 
$ 491.5 
$ 501.5 
 
$ 300.0 
$ 300.0 
$ 500.0 
$ 500.0 
$ 1,100.0 
$ 1,100.0 
 
 
 
 
$ 120.1 
$ 123.9 
 
 
 
Other long-term debt
0.4 
0.5 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Credit facilities
3
3
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Less: unamortized debt discounts and other
(12.0)
(17.4)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Total long-term debt (including current portion)
4,637.9 
4,654.9 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
(640.9)
 
Current portion of long-term debt
(1,247.1)
(1,232.4)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Total long-term debt
3,390.8 
3,422.5 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Short-term debt
13.3 
13.2 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Current portion of long-term debt and short-term borrowings
1,260.4 
1,245.6 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Debt instrument, face amount
 
 
$ 575 
$ 575 
 
$ 575 
 
 
 
 
$ 900 
 
 
$ 500 
 
 
 
 
 
 
$ 1,100 
 
$ 300 
$ 500 
 
 
€ 120 
 
€ 500 
Debt instrument, interest rate percentage
 
 
 
2.50% 
 
2.50% 
 
 
 
 
 
 
 
3.95% 
 
 
 
 
 
 
5.00% 
5.00% 
2.00% 
3.50% 
 
 
 
0.00% 
 
[1] The original conversion price for each $1,000 aggregate principal amount of notes was $54.76 per share of our Class B common stock, which represented a 25% premium above the stock price on the day of issuance of the notes and corresponded to the initial conversion ratio of 18.263 shares per each $1,000 aggregate principal amount of notes. The conversion ratio and conversion price are subject to adjustments for certain events and provisions, as defined in the indenture, including adjustments reflected for exceeding defined thresholds related to our dividend payments. As of November 2012, our conversion price and ratio are $52.18 and 19.1662 shares, respectively. As of March 30, 2013, the convertible debt's if-converted value does not exceed the principal.During the first quarters of 2013 and 2012, we incurred additional non-cash interest expense of $4.6 million and $4.5 million, respectively. We also incurred interest expense related to the 2.5% convertible coupon rate of $3.6 million and $3.7 million during the first quarters of 2013 and 2012, respectively. The combination of non-cash and cash interest resulted in an effective interest rate of 5.8% and 5.9% for the first quarters of 2013 and 2012, respectively. As of March 30, 2013, and December 29, 2012, $6.2 million and $10.8 million, respectively, of the unamortized debt discount and other balance relates to our $575 million convertible debt. We expect to record additional non-cash interest expense of $6.2 million during the remainder of 2013, thereby increasing the carrying value of the convertible debt to its $575 million face value at maturity in July 2013. As the notes mature in July 2013, the carrying value at March 30, 2013, is included within the current portion of long-term debt.
[2] On June 15, 2012, we issued a €500 million Zero Coupon Senior Unsecured Convertible Note due 2013 (the ''Convertible Note'') to the Seller in conjunction with the closing of the Acquisition. The Convertible Note matures on December 31, 2013, and is a senior unsecured obligation guaranteed by MCBC. The Seller has the ability to exercise a put right with respect to the Convertible Note as of March 14, 2013, (the “First Redemption Date”) and ending on December 19, 2013, for the greater of the principal amount of the Convertible Note or the aggregate cash value of 12,894,044 shares of our Class B Common Stock, as adjusted for certain corporate events. The Convertible Note's embedded conversion feature was determined to meet the definition of a derivative required to be bifurcated and separately accounted for at fair value with changes in fair value recorded in earnings. At issuance, we recorded a liability of $15.2 million related to the conversion feature. The Convertible Note was issued at a discount of $1.3 million, which has been recognized as interest expense over the period from issuance to the First Redemption Date. As of March 30, 2013, the carrying value of the Convertible Note is included within the current portion of long-term debt.The carrying value of the Convertible Note and fair value of the conversion feature at March 30, 2013, were $640.9 million and $37.4 million, respectively. We recognized an unrealized loss of $29.5 million during the first quarter of 2013 related to changes in the fair value of the conversion feature. The non-cash interest, excluding the change in fair value of the convertible feature, resulted in an effective interest rate of 0.25% for the first quarter of 2013. See Note 14, "Derivative Instruments and Hedging Activities" for further discussion of the conversion feature.
[3] (3)In the first quarter of 2013, a $950 million commercial paper program was approved and implemented. The commercial paper program is supported by our $550 million and $400 million revolving credit facilities. As of March 30, 2013, there were no outstanding borrowings under the commercial paper program.In the third quarter of 2012, we entered into a revolving credit agreement ("Euro Credit Agreement") to support our operations in Central Europe within our Europe segment. The Euro Credit Agreement provides for a 1-year revolving credit facility of €150 million on an uncommitted basis. In the second quarter of 2012, we entered into a revolving credit agreement (the ''Credit Agreement''). The Credit Agreement provides for a 4-year revolving credit facility of $550 million. The Credit Agreement contains customary events of default and specified representations and warranties and covenants, including, among other things, covenants that limit our subsidiaries' ability to incur certain additional priority indebtedness, create or permit liens on assets, or engage in mergers or consolidations. In the second quarter of 2011, we entered into an agreement for a 4-year revolving multicurrency credit facility of $400 million, which provides a $100 million sub-facility available for the issuance of letters of credit.There were no outstanding borrowings on any of our credit facilities as of March 30, 2013.
Debt Narrative (Details)
3 Months Ended 6 Months Ended 3 Months Ended 1 Months Ended 0 Months Ended 3 Months Ended 3 Months Ended
Mar. 30, 2013
USD ($)
Dec. 29, 2012
USD ($)
Jun. 30, 2007
USD ($)
Mar. 30, 2013
Senior Notes [Member]
USD ($)
Mar. 31, 2012
Senior Notes [Member]
USD ($)
Mar. 30, 2013
Senior Notes [Member]
$575 million 2.5% convertible Senior Notes due 2013
USD ($)
Mar. 31, 2012
Senior Notes [Member]
$575 million 2.5% convertible Senior Notes due 2013
USD ($)
Dec. 29, 2012
Senior Notes [Member]
$575 million 2.5% convertible Senior Notes due 2013
USD ($)
Jun. 15, 2007
Senior Notes [Member]
$575 million 2.5% convertible Senior Notes due 2013
USD ($)
May 3, 2012
Senior Notes [Member]
2.0% Interest Rate, Maturing 2017 [Member]
USD ($)
May 3, 2012
Senior Notes [Member]
3.5% Interest Rate, Maturing 2022 [Member]
USD ($)
May 3, 2012
Senior Notes [Member]
5.0% Interest Rate, Maturing 2042 [Member]
USD ($)
Sep. 22, 2005
Senior Notes [Member]
5.0% Interest Rate, Maturing 2042 [Member]
Sep. 29, 2012
Line of Credit [Member]
Jun. 25, 2011
Line of Credit [Member]
Revolving Multicurrency Bank Credit Facility [Member]
Mar. 30, 2013
Line of Credit [Member]
Revolving Multicurrency Bank Credit Facility [Member]
USD ($)
Mar. 31, 2012
Line of Credit [Member]
Revolving Multicurrency Bank Credit Facility [Member]
USD ($)
Sep. 29, 2012
Revolving Credit [Member]
Sep. 10, 2012
Revolving Credit [Member]
EUR (€)
Apr. 3, 2012
Revolving Credit [Member]
USD ($)
Apr. 3, 2012
Tranch 2 [Member]
Term Loan Agreement [Member]
EUR (€)
Jun. 15, 2012
Molson Coors Central Europe (MCCE)
USD ($)
Jun. 15, 2012
Molson Coors Central Europe (MCCE)
EUR (€)
Jun. 15, 2012
Molson Coors Central Europe (MCCE)
Convertible Debt [Member]
Zero Coupon Senior Unsecured Note [Member]
EUR (€)
Mar. 30, 2013
Molson Coors Central Europe (MCCE)
Convertible Debt [Member]
Zero Coupon Senior Unsecured Note [Member]
USD ($)
Jun. 15, 2012
Molson Coors Central Europe (MCCE)
Senior Notes [Member]
EUR (€)
Mar. 30, 2013
Equity conversion feature of debt
Molson Coors Central Europe (MCCE)
Convertible Debt [Member]
Zero Coupon Senior Unsecured Note [Member]
USD ($)
Mar. 30, 2013
Fair Value, Inputs, Level 3 [Member]
USD ($)
Dec. 29, 2012
Fair Value, Inputs, Level 3 [Member]
USD ($)
Mar. 30, 2013
Fair Value, Inputs, Level 3 [Member]
Debt [Member]
USD ($)
Jun. 15, 2012
Fair Value, Inputs, Level 3 [Member]
Debt [Member]
Molson Coors Central Europe (MCCE)
USD ($)
Debt Instrument [Line Items]
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Debt instrument, interest rate percentage
 
 
 
 
 
2.50% 
 
 
2.50% 
2.00% 
3.50% 
5.00% 
5.00% 
 
 
 
 
 
 
 
 
 
 
 
0.00% 
 
 
 
 
 
 
Debt, principal amount, per share
 
 
 
 
 
 
 
 
$ 1,000 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Debt, convertible conversion price per share
 
 
 
 
 
$ 52.18 
 
 
$ 54.76 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Percentage of premium over stock price of convertible debt
 
 
 
 
 
 
 
 
25.00% 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Debt instrument, convertible number of equity instruments, ratio
 
 
 
 
 
19.1662 
 
 
18.263 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Interest expense, debt amortization
 
 
 
4,600,000 
4,500,000 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Interest expense, debt
 
 
 
 
 
3,600,000 
3,700,000 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Effective interest rate percentage
 
 
 
 
 
5.80% 
5.90% 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Unamortized debt discount
 
 
 
 
 
6,200,000 
 
10,800,000 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Debt instrument, face amount
 
 
575,000,000 
 
 
575,000,000 
 
 
575,000,000 
300,000,000 
500,000,000 
1,100,000,000 
 
 
 
 
 
 
150,000,000 
 
120,000,000 
 
 
500,000,000 
 
 
 
 
 
 
 
Commercial paper, maximum borrowing capacity
950,000,000 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Noncash interest expense due to amortization of unamortized debt discount in future periods convertible debt estimated range low
 
 
 
 
 
6,200,000 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Business acquisition, cost of acquired entity, liabilities incurred
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
3,400,000,000 
2,700,000,000 
500,000,000 
 
500,000,000 
 
 
 
 
 
Stock available upon conversion of convertible securities (shares)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
12,894,044 
12,894,044 
 
 
 
 
 
 
 
 
Derivative liabilities
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
15,200,000 
Discounts to long-term debt
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
1,300,000 
 
 
 
 
 
 
 
Long-term debt
4,637,900,000 
4,654,900,000 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
(640,900,000)
 
 
 
 
 
 
Derivative financial instruments, liabilities, fair value disclosure
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
(37,400,000)
37,400,000 
7,900,000 
37,400,000 
 
Unrealized loss, change in fair value of debt convertion feature
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
(29,500,000)
 
 
 
 
Convertible debt instrument, effective interest rate
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
0.25% 
 
 
 
 
 
 
Debt instrument, term
 
 
 
 
 
 
 
 
 
 
 
 
 
4 years 
4 years 
 
 
1 year 
 
 
 
 
 
 
 
 
 
 
 
 
 
Revolving credit facility, maximum borrowing capacity
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
400,000,000 
 
 
550,000,000 
 
 
 
 
 
 
 
 
 
 
 
Commercial paper outstanding, amount
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Additional capacity for letters of credit
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
100,000,000 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Credit facility, current borrowing capacity
1
1
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Short-term borrowings
13,300,000 
13,200,000 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Long-term debt, fair value
$ 4,945,200,000 
$ 4,993,000,000 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
[1] (3)In the first quarter of 2013, a $950 million commercial paper program was approved and implemented. The commercial paper program is supported by our $550 million and $400 million revolving credit facilities. As of March 30, 2013, there were no outstanding borrowings under the commercial paper program.In the third quarter of 2012, we entered into a revolving credit agreement ("Euro Credit Agreement") to support our operations in Central Europe within our Europe segment. The Euro Credit Agreement provides for a 1-year revolving credit facility of €150 million on an uncommitted basis. In the second quarter of 2012, we entered into a revolving credit agreement (the ''Credit Agreement''). The Credit Agreement provides for a 4-year revolving credit facility of $550 million. The Credit Agreement contains customary events of default and specified representations and warranties and covenants, including, among other things, covenants that limit our subsidiaries' ability to incur certain additional priority indebtedness, create or permit liens on assets, or engage in mergers or consolidations. In the second quarter of 2011, we entered into an agreement for a 4-year revolving multicurrency credit facility of $400 million, which provides a $100 million sub-facility available for the issuance of letters of credit.There were no outstanding borrowings on any of our credit facilities as of March 30, 2013.
Derivative Instruments and Hedging Activities Narrative (Details)
In Millions, except Share data, unless otherwise specified
3 Months Ended
Mar. 30, 2013
transfer
Jun. 30, 2007
USD ($)
Mar. 30, 2013
Forecast
USD ($)
M
Jun. 15, 2012
Molson Coors Central Europe (MCCE)
Jun. 15, 2012
Fair Value, Inputs, Level 3 [Member]
Molson Coors Central Europe (MCCE)
Debt, Conversion Feature
USD ($)
Apr. 3, 2012
Tranch 2 [Member]
Term Loan Facility [Member]
EUR (€)
Schedule of Trading Securities and Other Trading Assets
 
 
 
 
 
 
Debt instrument, face amount
 
$ 575 
 
 
 
€ 120 
Stock available upon conversion of convertible securities (shares)
 
 
 
12,894,044 
 
 
Derivative liabilities
 
 
 
 
15.2 
 
Unrealized Gain (Loss) on Interest Rate Cash Flow Hedges, Pretax, Accumulated Other Comprehensive Income (Loss)
 
 
$ 3.9 
 
 
 
Term for Expected Losses Recorded in Accumulated Other Comprehensive Income
 
 
12 
 
 
 
Maximum Length of Time Hedged in Cash Flow Hedge
 
 
3 years 
 
 
 
Fair Value Measurement, Transfers Between Level 1 and Level 2
 
 
 
 
 
Derivative Instruments and Hedging Activities Derivative Fair Value (Details) (USD $)
In Millions, unless otherwise specified
3 Months Ended
Mar. 30, 2013
Fair Value, Measurements, Recurring [Member]
Fair Value, Inputs, Level 1 [Member]
Dec. 29, 2012
Fair Value, Measurements, Recurring [Member]
Fair Value, Inputs, Level 1 [Member]
Mar. 30, 2013
Fair Value, Measurements, Recurring [Member]
Fair Value, Inputs, Level 1 [Member]
Cross currency swaps
Dec. 29, 2012
Fair Value, Measurements, Recurring [Member]
Fair Value, Inputs, Level 1 [Member]
Cross currency swaps
Mar. 30, 2013
Fair Value, Measurements, Recurring [Member]
Fair Value, Inputs, Level 1 [Member]
Foreign currency forwards
Dec. 29, 2012
Fair Value, Measurements, Recurring [Member]
Fair Value, Inputs, Level 1 [Member]
Foreign currency forwards
Mar. 30, 2013
Fair Value, Measurements, Recurring [Member]
Fair Value, Inputs, Level 1 [Member]
Commodity swaps
Dec. 29, 2012
Fair Value, Measurements, Recurring [Member]
Fair Value, Inputs, Level 1 [Member]
Commodity swaps
Mar. 30, 2013
Fair Value, Measurements, Recurring [Member]
Fair Value, Inputs, Level 1 [Member]
Equity conversion feature of debt
Dec. 29, 2012
Fair Value, Measurements, Recurring [Member]
Fair Value, Inputs, Level 1 [Member]
Equity conversion feature of debt
Mar. 30, 2013
Fair Value, Measurements, Recurring [Member]
Fair Value, Inputs, Level 2 [Member]
Dec. 29, 2012
Fair Value, Measurements, Recurring [Member]
Fair Value, Inputs, Level 2 [Member]
Mar. 30, 2013
Fair Value, Measurements, Recurring [Member]
Fair Value, Inputs, Level 2 [Member]
Cross currency swaps
Dec. 29, 2012
Fair Value, Measurements, Recurring [Member]
Fair Value, Inputs, Level 2 [Member]
Cross currency swaps
Mar. 30, 2013
Fair Value, Measurements, Recurring [Member]
Fair Value, Inputs, Level 2 [Member]
Foreign currency forwards
Dec. 29, 2012
Fair Value, Measurements, Recurring [Member]
Fair Value, Inputs, Level 2 [Member]
Foreign currency forwards
Mar. 30, 2013
Fair Value, Measurements, Recurring [Member]
Fair Value, Inputs, Level 2 [Member]
Commodity swaps
Dec. 29, 2012
Fair Value, Measurements, Recurring [Member]
Fair Value, Inputs, Level 2 [Member]
Commodity swaps
Mar. 30, 2013
Fair Value, Measurements, Recurring [Member]
Fair Value, Inputs, Level 2 [Member]
Equity conversion feature of debt
Dec. 29, 2012
Fair Value, Measurements, Recurring [Member]
Fair Value, Inputs, Level 2 [Member]
Equity conversion feature of debt
Mar. 30, 2013
Fair Value, Measurements, Recurring [Member]
Significant unobservable inputs (Level 3) [Member]
Dec. 29, 2012
Fair Value, Measurements, Recurring [Member]
Significant unobservable inputs (Level 3) [Member]
Mar. 30, 2013
Fair Value, Measurements, Recurring [Member]
Significant unobservable inputs (Level 3) [Member]
Cross currency swaps
Dec. 29, 2012
Fair Value, Measurements, Recurring [Member]
Significant unobservable inputs (Level 3) [Member]
Cross currency swaps
Mar. 30, 2013
Fair Value, Measurements, Recurring [Member]
Significant unobservable inputs (Level 3) [Member]
Foreign currency forwards
Dec. 29, 2012
Fair Value, Measurements, Recurring [Member]
Significant unobservable inputs (Level 3) [Member]
Foreign currency forwards
Mar. 30, 2013
Fair Value, Measurements, Recurring [Member]
Significant unobservable inputs (Level 3) [Member]
Commodity swaps
Dec. 29, 2012
Fair Value, Measurements, Recurring [Member]
Significant unobservable inputs (Level 3) [Member]
Commodity swaps
Mar. 30, 2013
Fair Value, Measurements, Recurring [Member]
Significant unobservable inputs (Level 3) [Member]
Equity conversion feature of debt
Dec. 29, 2012
Fair Value, Measurements, Recurring [Member]
Significant unobservable inputs (Level 3) [Member]
Equity conversion feature of debt
Mar. 30, 2013
Fair Value, Measurements, Recurring [Member]
Carrying (Reported) Amount, Fair Value Disclosure [Member]
Estimate of Fair Value, Fair Value Disclosure [Member]
Dec. 29, 2012
Fair Value, Measurements, Recurring [Member]
Carrying (Reported) Amount, Fair Value Disclosure [Member]
Estimate of Fair Value, Fair Value Disclosure [Member]
Mar. 30, 2013
Fair Value, Measurements, Recurring [Member]
Carrying (Reported) Amount, Fair Value Disclosure [Member]
Estimate of Fair Value, Fair Value Disclosure [Member]
Cross currency swaps
Dec. 29, 2012
Fair Value, Measurements, Recurring [Member]
Carrying (Reported) Amount, Fair Value Disclosure [Member]
Estimate of Fair Value, Fair Value Disclosure [Member]
Cross currency swaps
Mar. 30, 2013
Fair Value, Measurements, Recurring [Member]
Carrying (Reported) Amount, Fair Value Disclosure [Member]
Estimate of Fair Value, Fair Value Disclosure [Member]
Foreign currency forwards
Dec. 29, 2012
Fair Value, Measurements, Recurring [Member]
Carrying (Reported) Amount, Fair Value Disclosure [Member]
Estimate of Fair Value, Fair Value Disclosure [Member]
Foreign currency forwards
Mar. 30, 2013
Fair Value, Measurements, Recurring [Member]
Carrying (Reported) Amount, Fair Value Disclosure [Member]
Estimate of Fair Value, Fair Value Disclosure [Member]
Commodity swaps
Dec. 29, 2012
Fair Value, Measurements, Recurring [Member]
Carrying (Reported) Amount, Fair Value Disclosure [Member]
Estimate of Fair Value, Fair Value Disclosure [Member]
Commodity swaps
Mar. 30, 2013
Fair Value, Measurements, Recurring [Member]
Carrying (Reported) Amount, Fair Value Disclosure [Member]
Estimate of Fair Value, Fair Value Disclosure [Member]
Equity conversion feature of debt
Dec. 29, 2012
Fair Value, Measurements, Recurring [Member]
Carrying (Reported) Amount, Fair Value Disclosure [Member]
Estimate of Fair Value, Fair Value Disclosure [Member]
Equity conversion feature of debt
Mar. 31, 2012
Maximum [Member]
Mar. 30, 2013
Minimum [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Sensitivity of Fair Value Changes, Unobservable Inputs, Implied Volatility Percentage
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
25.00% 
21.00% 
Derivative Liability, Fair Value, Gross Liability
 
 
$ 0 
$ 0 
$ 0 
$ 0 
$ 0 
$ 0 
$ 0 
$ 0 
 
 
$ (206.2)
$ (220.4)
$ (4.0)
$ (1.7)
$ (1.4)
$ (2.5)
$ 0 
$ 0 
 
 
$ 0 
$ 0 
$ 0 
$ 0 
$ 0 
$ 0 
$ (37.4)
$ (7.9)
 
 
$ (206.2)
$ (220.4)
$ (4.0)
$ (1.7)
$ (1.4)
$ (2.5)
$ (37.4)
$ (7.9)
 
 
Derivative, Fair Value, Net
$ 0 
$ 0 
 
 
 
 
 
 
 
 
$ (211.6)
$ (224.6)
 
 
 
 
 
 
 
 
$ (37.4)
$ (7.9)
 
 
 
 
 
 
 
 
$ (249.0)
$ (232.5)
 
 
 
 
 
 
 
 
 
 
Derivative Instruments and Hedging Activities Derivative Valuation Activity (Details) (USD $)
In Millions, unless otherwise specified
3 Months Ended
Mar. 30, 2013
Dec. 29, 2012
Significant unobservable inputs (Level 3) [Member]
 
 
Derivative Instruments, Gain (Loss) [Line Items]
 
 
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Liability, Gain (Loss) Included in Earnings
$ (29.5)
 
Derivative financial instruments, liabilities, fair value disclosure
(37.4)
(7.9)
Significant unobservable inputs (Level 3) [Member] |
Included in Earnings (or Change in Net Assets) [Member]
 
 
Derivative Instruments, Gain (Loss) [Line Items]
 
 
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Liability, Gain (Loss) Included in Earnings
(29.5)
 
Significant unobservable inputs (Level 3) [Member] |
Issuances [Member]
 
 
Derivative Instruments, Gain (Loss) [Line Items]
 
 
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Liability, Purchases, Sales, Issuances, Settlements
 
Significant unobservable inputs (Level 3) [Member] |
Equity conversion feature of debt
 
 
Derivative Instruments, Gain (Loss) [Line Items]
 
 
Derivative financial instruments, liabilities, fair value disclosure
(37.4)
 
Zero Coupon Senior Unsecured Note [Member] |
Convertible Debt [Member] |
Equity conversion feature of debt |
Molson Coors Central Europe (MCCE)
 
 
Derivative Instruments, Gain (Loss) [Line Items]
 
 
Derivative financial instruments, liabilities, fair value disclosure
$ 37.4 
 
Derivative Instruments and Hedging Activities Fair Value Balance Sheet (Details)
In Millions, unless otherwise specified
Mar. 30, 2013
Designated as Hedging Instrument [Member]
USD ($)
Dec. 29, 2012
Designated as Hedging Instrument [Member]
USD ($)
Mar. 30, 2013
Designated as Hedging Instrument [Member]
Cross currency swaps
CAD ($)
Dec. 29, 2012
Designated as Hedging Instrument [Member]
Cross currency swaps
CAD ($)
Mar. 30, 2013
Designated as Hedging Instrument [Member]
Cross currency swaps
Other assets
USD ($)
Dec. 29, 2012
Designated as Hedging Instrument [Member]
Cross currency swaps
Other assets
USD ($)
Mar. 30, 2013
Designated as Hedging Instrument [Member]
Cross currency swaps
Long term derivative liability
USD ($)
Dec. 29, 2012
Designated as Hedging Instrument [Member]
Cross currency swaps
Long term derivative liability
USD ($)
Mar. 30, 2013
Designated as Hedging Instrument [Member]
Foreign currency forwards
USD ($)
Dec. 29, 2012
Designated as Hedging Instrument [Member]
Foreign currency forwards
USD ($)
Mar. 30, 2013
Designated as Hedging Instrument [Member]
Foreign currency forwards
Other current assets
USD ($)
Dec. 29, 2012
Designated as Hedging Instrument [Member]
Foreign currency forwards
Other current assets
USD ($)
Mar. 30, 2013
Designated as Hedging Instrument [Member]
Foreign currency forwards
Other assets
USD ($)
Dec. 29, 2012
Designated as Hedging Instrument [Member]
Foreign currency forwards
Other assets
USD ($)
Mar. 30, 2013
Designated as Hedging Instrument [Member]
Foreign currency forwards
Current derivative liability
USD ($)
Dec. 29, 2012
Designated as Hedging Instrument [Member]
Foreign currency forwards
Current derivative liability
USD ($)
Mar. 30, 2013
Designated as Hedging Instrument [Member]
Foreign currency forwards
Long term derivative liability
USD ($)
Dec. 29, 2012
Designated as Hedging Instrument [Member]
Foreign currency forwards
Long term derivative liability
USD ($)
Mar. 30, 2013
Designated as Hedging Instrument [Member]
Commodity swaps
kWh
Dec. 29, 2012
Designated as Hedging Instrument [Member]
Commodity swaps
kWh
Mar. 30, 2013
Designated as Hedging Instrument [Member]
Commodity swaps
Other current assets
USD ($)
Dec. 29, 2012
Designated as Hedging Instrument [Member]
Commodity swaps
Other current assets
USD ($)
Mar. 30, 2013
Designated as Hedging Instrument [Member]
Commodity swaps
Other assets
USD ($)
Dec. 29, 2012
Designated as Hedging Instrument [Member]
Commodity swaps
Other assets
USD ($)
Mar. 30, 2013
Designated as Hedging Instrument [Member]
Commodity swaps
Current derivative liability
USD ($)
Dec. 29, 2012
Designated as Hedging Instrument [Member]
Commodity swaps
Current derivative liability
USD ($)
Mar. 30, 2013
Designated as Hedging Instrument [Member]
Commodity swaps
Long term derivative liability
USD ($)
Dec. 29, 2012
Designated as Hedging Instrument [Member]
Commodity swaps
Long term derivative liability
USD ($)
Mar. 30, 2013
Designated as Hedging Instrument [Member]
Investment Hedge
EUR (€)
Dec. 29, 2012
Designated as Hedging Instrument [Member]
Investment Hedge
EUR (€)
Mar. 30, 2013
Designated as Hedging Instrument [Member]
Investment Hedge
Long-term debt
USD ($)
Dec. 29, 2012
Designated as Hedging Instrument [Member]
Investment Hedge
Long-term debt
USD ($)
Mar. 30, 2013
Designated as Hedging Instrument [Member]
Investment Hedge [Member]
Long-term debt
USD ($)
Dec. 29, 2012
Designated as Hedging Instrument [Member]
Investment Hedge [Member]
Long-term debt
USD ($)
Mar. 30, 2013
Not Designated as Hedging Instrument [Member]
USD ($)
Dec. 29, 2012
Not Designated as Hedging Instrument [Member]
USD ($)
Mar. 30, 2013
Not Designated as Hedging Instrument [Member]
Foreign currency forwards
Other current assets
USD ($)
Mar. 30, 2013
Not Designated as Hedging Instrument [Member]
Foreign currency forwards
Current derivative liability
USD ($)
Mar. 30, 2013
Not Designated as Hedging Instrument [Member]
Equity conversion feature of debt
EUR (€)
Dec. 29, 2012
Not Designated as Hedging Instrument [Member]
Equity conversion feature of debt
EUR (€)
Mar. 30, 2013
Not Designated as Hedging Instrument [Member]
Equity conversion feature of debt
Current derivative liability
USD ($)
Dec. 29, 2012
Not Designated as Hedging Instrument [Member]
Equity conversion feature of debt
Current derivative liability
USD ($)
Mar. 30, 2013
Not Designated as Hedging Instrument [Member]
Aluminum [Member]
t
Dec. 29, 2012
Not Designated as Hedging Instrument [Member]
Aluminum [Member]
t
Mar. 30, 2013
Not Designated as Hedging Instrument [Member]
Aluminum [Member]
Other current assets
USD ($)
Dec. 29, 2012
Not Designated as Hedging Instrument [Member]
Aluminum [Member]
Other current assets
USD ($)
Mar. 30, 2013
Not Designated as Hedging Instrument [Member]
Aluminum [Member]
Current derivative liability
USD ($)
Dec. 29, 2012
Not Designated as Hedging Instrument [Member]
Aluminum [Member]
Current derivative liability
USD ($)
Mar. 30, 2013
Not Designated as Hedging Instrument [Member]
Deisel [Member]
t
Dec. 29, 2012
Not Designated as Hedging Instrument [Member]
Deisel [Member]
t
Mar. 30, 2013
Not Designated as Hedging Instrument [Member]
Deisel [Member]
Other current assets
USD ($)
Dec. 29, 2012
Not Designated as Hedging Instrument [Member]
Deisel [Member]
Other current assets
USD ($)
Mar. 30, 2013
Not Designated as Hedging Instrument [Member]
Deisel [Member]
Current derivative liability
USD ($)
Dec. 29, 2012
Not Designated as Hedging Instrument [Member]
Deisel [Member]
Current derivative liability
USD ($)
Derivatives designated as hedging instruments:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Notional Amounts
 
 
$ 601.3 
$ 601.3 
 
 
 
 
$ 453.2 
$ 507.3 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Notional Amount of Derivatives Nonmonetary Designated as Hedging Instrument, Energy
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
485,900,000 
486,100,000 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Derivative asset, fair value, designated as hedging instrument
8.3 
3.6 
 
 
 
 
 
 
4.7 
2.0 
3.2 
1.4 
 
 
 
 
 
 
0.3 
0.1 
0.2 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Derivative fair value, liability
(208.0)
(226.6)
 
 
 
 
(206.2)
(220.4)
 
 
 
 
 
 
(1.1)
(3.4)
(0.2)
(1.7)
 
 
 
 
 
 
(0.4)
(1.0)
(0.1)
(0.1)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Derivatives not designated as hedging instruments:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Notional Amount of Other Derivatives Not Designated as Hedging Instruments
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
500.0 
500.0 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Notional amount of derivatives not designated as hedging instrument In Metric Tonnes
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
2,075 
2,850 
 
 
 
 
3,977 
5,493 
 
 
 
 
Derivative Instruments Not Designated as Hedging Instruments, Asset, at Fair Value
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
0.1 
 
 
 
 
 
 
 
 
 
 
 
0.1 
 
 
Derivative Instruments Not Designated as Hedging Instruments, Liability, at Fair Value
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
(49.4)
(9.5)
 
(10.6)
 
 
(37.4)
(7.9)
 
 
 
 
(1.4)
(1.4)
 
 
 
 
(0.2)
Non-derivative financial instruments in net investment hedge relationships
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
93.7 
93.7 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Non-derivative financial instruments in net investment hedge relationships, at fair value
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
$ (120.1)
$ (123.9)
$ (120.1)
$ (123.9)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Derivative Instruments and Hedging Activities Cash Flow Hedges (Details) (USD $)
In Millions, unless otherwise specified
3 Months Ended
Mar. 30, 2013
Mar. 31, 2012
Cash Flow Hedging [Member]
 
 
Derivative Instruments, Gain (Loss) [Line Items]
 
 
Amount of (gain) loss recognized in OCI on derivative (effective portion)
$ 9.5 
$ (6.7)
Amount of gain (loss) recognized from AOCI on derivative (effective portion)
(0.2)
(2.4)
Amount of gain (loss) recognized in income on derivative (ineffective portion and amount excluded from effectiveness testing)
Cash Flow Hedging [Member] |
Interest Rate Swap [Member]
 
 
Derivative Instruments, Gain (Loss) [Line Items]
 
 
Amount of (gain) loss recognized in OCI on derivative (effective portion)
Cash Flow Hedging [Member] |
Interest Rate Swap [Member] |
Interest expense, net
 
 
Derivative Instruments, Gain (Loss) [Line Items]
 
 
Amount of gain (loss) recognized from AOCI on derivative (effective portion)
(0.4)
(0.4)
Amount of gain (loss) recognized in income on derivative (ineffective portion and amount excluded from effectiveness testing)
Cash Flow Hedging [Member] |
Foreign currency forwards
 
 
Derivative Instruments, Gain (Loss) [Line Items]
 
 
Amount of (gain) loss recognized in OCI on derivative (effective portion)
8.9 
(8.0)
Cash Flow Hedging [Member] |
Foreign currency forwards |
Other Income Expense [Member]
 
 
Derivative Instruments, Gain (Loss) [Line Items]
 
 
Amount of gain (loss) recognized from AOCI on derivative (effective portion)
(0.1)
(0.6)
Amount of gain (loss) recognized in income on derivative (ineffective portion and amount excluded from effectiveness testing)
Cash Flow Hedging [Member] |
Foreign currency forwards |
Cost of Sales [Member]
 
 
Derivative Instruments, Gain (Loss) [Line Items]
 
 
Amount of gain (loss) recognized from AOCI on derivative (effective portion)
0.5 
(1.1)
Amount of gain (loss) recognized in income on derivative (ineffective portion and amount excluded from effectiveness testing)
Cash Flow Hedging [Member] |
Commodity swaps
 
 
Derivative Instruments, Gain (Loss) [Line Items]
 
 
Amount of (gain) loss recognized in OCI on derivative (effective portion)
0.6 
1.3 
Cash Flow Hedging [Member] |
Commodity swaps |
Cost of Sales [Member]
 
 
Derivative Instruments, Gain (Loss) [Line Items]
 
 
Amount of gain (loss) recognized from AOCI on derivative (effective portion)
(0.2)
(0.3)
Amount of gain (loss) recognized in income on derivative (ineffective portion and amount excluded from effectiveness testing)
Investment Hedge
 
 
Derivative Instruments, Gain (Loss) [Line Items]
 
 
Amount of (gain) loss recognized in OCI on derivative (effective portion)
17.9 
(20.5)
Amount of gain (loss) recognized from AOCI on derivative (effective portion)
Amount of gain (loss) recognized in income on derivative (ineffective portion and amount excluded from effectiveness testing)
Investment Hedge |
Cross currency swaps
 
 
Derivative Instruments, Gain (Loss) [Line Items]
 
 
Amount of (gain) loss recognized in OCI on derivative (effective portion)
14.2 
(20.5)
Investment Hedge |
Cross currency swaps |
Other Income Expense [Member]
 
 
Derivative Instruments, Gain (Loss) [Line Items]
 
 
Amount of gain (loss) recognized from AOCI on derivative (effective portion)
Amount of gain (loss) recognized in income on derivative (ineffective portion and amount excluded from effectiveness testing)
Term Loan Agreement [Member] |
Investment Hedge
 
 
Derivative Instruments, Gain (Loss) [Line Items]
 
 
Amount of (gain) loss recognized in OCI on derivative (effective portion)
3.7 
 
Term Loan Agreement [Member] |
Investment Hedge |
Other Income Expense [Member]
 
 
Derivative Instruments, Gain (Loss) [Line Items]
 
 
Amount of gain (loss) recognized from AOCI on derivative (effective portion)
 
Amount of gain (loss) recognized in income on derivative (ineffective portion and amount excluded from effectiveness testing)
$ 0 
 
Derivative Instruments and Hedging Activities Other Derivatives (Details) (Not Designated as Hedging Instrument [Member], USD $)
In Millions, unless otherwise specified
3 Months Ended
Mar. 30, 2013
Mar. 31, 2012
Other income (expense), net.
 
 
Gain (Loss) on Derivative Instruments:
 
 
Amount of Gain (Loss) Recognized in Income on Derivative
$ (40.1)
$ 0.1 
Equity conversion feature of debt |
Interest expense, net
 
 
Gain (Loss) on Derivative Instruments:
 
 
Amount of Gain (Loss) Recognized in Income on Derivative
(29.7)
 
Equity conversion feature of debt |
Other income (expense), net.
 
 
Gain (Loss) on Derivative Instruments:
 
 
Amount of Gain (Loss) Recognized in Income on Derivative
0.2 
 
Commodity swaps |
Cost of goods sold
 
 
Gain (Loss) on Derivative Instruments:
 
 
Amount of Gain (Loss) Recognized in Income on Derivative
 
0.1 
Foreign currency forwards |
Other income (expense), net.
 
 
Gain (Loss) on Derivative Instruments:
 
 
Amount of Gain (Loss) Recognized in Income on Derivative
$ (10.6)
 
Pension and Other Postretirement Benefits (Details) (USD $)
In Millions, unless otherwise specified
3 Months Ended 3 Months Ended
Mar. 30, 2013
Dec. 29, 2012
Mar. 30, 2013
Defined Benefit Plans and Other Postretirement Benefit, Cost [Member]
Mar. 31, 2012
Defined Benefit Plans and Other Postretirement Benefit, Cost [Member]
Mar. 30, 2013
Defined Benefit Plans and Other Postretirement Benefit, Cost [Member]
Defined Benefit Plans
Mar. 31, 2012
Defined Benefit Plans and Other Postretirement Benefit, Cost [Member]
Defined Benefit Plans
Mar. 30, 2013
Defined Benefit Plans and Other Postretirement Benefit, Cost [Member]
Other Postretirement Benefits
Mar. 31, 2012
Defined Benefit Plans and Other Postretirement Benefit, Cost [Member]
Other Postretirement Benefits
Pension and other post-retirement benefits details:
 
 
 
 
 
 
 
 
Pension and other postretirement defined benefit plans, noncurrent liabilities
$ 776.6 
$ 833.0 
 
 
 
 
 
 
Net periodic pension costs under retirement plans and other postretirement benefits:
 
 
 
 
 
 
 
 
Service cost - benefits earned during the period
 
 
4.9 
4.9 
4.0 
4.2 
0.9 
0.7 
Interest cost on projected benefit obligation
 
 
41.2 
43.1 
39.4 
41.1 
1.8 
2.0 
Expected return on plan assets
 
 
(44.7)
(43.5)
(44.7)
(43.5)
Amortization of prior service cost (benefit)
 
 
(0.7)
(0.7)
0.2 
0.2 
(0.9)
(0.9)
Amortization of net actuarial loss (gain)
14.2 1
 
14.2 
9.7 
14.3 
9.8 
(0.1)
(0.1)
Less: expected participant contributions
 
 
(0.3)
(0.4)
(0.3)
(0.4)
Net periodic pension and postretirement benefit cost
 
 
14.6 
13.1 
12.9 
11.4 
1.7 
1.7 
Contributions paid to defined benefit plans
23.4 
 
 
 
 
 
 
 
Expected total defined benefit plan employer contributions
$ 110 
 
 
 
 
 
 
 
Commitments and Contingencies Loss Contingency (Details)
In Millions, unless otherwise specified
1 Months Ended 3 Months Ended 12 Months Ended 3 Months Ended 12 Months Ended 3 Months Ended
Dec. 31, 2009
CAD ($)
Mar. 30, 2013
USD ($)
Dec. 29, 2012
USD ($)
Jun. 30, 2007
USD ($)
Mar. 30, 2013
RMMC [Member]
USD ($)
Mar. 30, 2013
Kaiser purchased tax credits indemnity reserve, category two
USD ($)
Mar. 30, 2013
Kaiser tax, civil and labor indemnity reserve
USD ($)
Dec. 31, 1990
Environmental matters Lowry [Member]
USD ($)
Mar. 30, 2013
Environmental matters Lowry [Member]
USD ($)
Mar. 30, 2013
MillerCoors
RMMC [Member]
Mar. 30, 2013
Land Use Rights And Other [Member]
USD ($)
Dec. 29, 2012
Land Use Rights And Other [Member]
USD ($)
Mar. 30, 2013
Licensing Agreements [Member]
USD ($)
Mar. 31, 2012
Licensing Agreements [Member]
USD ($)
Mar. 30, 2013
Minimum [Member]
Land Use Rights And Other [Member]
Dec. 29, 2012
Minimum [Member]
Land Use Rights And Other [Member]
Mar. 30, 2013
Minimum [Member]
License Agreement Terms [Member]
Mar. 30, 2013
Cervejarias Kaiser Brasil S.A. [Member]
USD ($)
Mar. 31, 2012
Cervejarias Kaiser Brasil S.A. [Member]
USD ($)
Loss Contingencies [Line Items]
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Gain (loss) discontinued operations
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
$ (0.9)
$ 0.1 
Equity interest sold (as a percent)
 
 
 
 
 
 
68.00% 
 
 
 
 
 
 
 
 
 
 
 
 
Maximum potential claims
 
 
 
 
 
173.1 
68.0 
 
 
 
 
 
 
 
 
 
 
 
 
Guarantees
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Debt instrument, face amount
 
 
 
575 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Equity method investment, ownership percentage
 
 
 
 
 
 
 
 
 
50.00% 
 
 
 
 
 
 
 
 
 
Guarantor obligations, maximum exposure, undiscounted
 
 
 
 
4.5 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Letter of credit provided to entity
10 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Guarantees related to banks and other third parties noncurrent portion
 
6.1 
6.2 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Litigation and Other Disputes
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Accrued liabilities, litigations and disputes
 
14.4 
14.5 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
License and Services Revenue
 
 
 
 
 
 
 
 
 
 
 
 
17.2 
16.7 
 
 
 
 
 
Finite-Lived Intangible Assets, Net
 
 
 
 
 
 
 
 
 
 
5.9 
8.2 
66.4 
 
 
 
 
 
 
Useful life - minimum (in years)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
2 years 
2 years 
7 years 
 
 
Environmental
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Environmental remediation expense, pretax charge
 
 
 
 
 
 
 
30 
 
 
 
 
 
 
 
 
 
 
 
Environmental remediation threshold, assumed remediation cost
 
 
 
 
 
 
 
 
120 
 
 
 
 
 
 
 
 
 
 
Inflation rate assumption, future costs (as a percent)
 
 
 
 
 
 
 
 
2.50% 
 
 
 
 
 
 
 
 
 
 
Risk free rate of return assumption (as a percent)
 
 
 
 
 
 
 
 
2.28% 
 
 
 
 
 
 
 
 
 
 
Site contingency, accrual, present value
 
 
 
 
 
 
 
 
3.2 
 
 
 
 
 
 
 
 
 
 
Site contingency, accrual, undiscounted amount
 
 
 
 
 
 
 
 
$ 7.3 
 
 
 
 
 
 
 
 
 
 
Supplemental Guarantor Information Supplemental Narrative (Details)
In Millions, unless otherwise specified
12 Months Ended 3 Months Ended
Mar. 30, 2013
USD ($)
Dec. 29, 2012
USD ($)
Jun. 30, 2007
USD ($)
Mar. 30, 2013
Parent Guarantor, 2007 and 2012 Issuer [Member]
USD ($)
Dec. 29, 2012
Parent Guarantor, 2007 and 2012 Issuer [Member]
USD ($)
Mar. 30, 2013
Senior Notes [Member]
Convertible Senior Notes Due 2013 $575 Million 2.5% [Member]
USD ($)
Jun. 15, 2007
Senior Notes [Member]
Convertible Senior Notes Due 2013 $575 Million 2.5% [Member]
USD ($)
Oct. 6, 2010
Senior Notes [Member]
Series A notes due 2017 CAD 500 million 3.95% [Member]
USD ($)
Jun. 15, 2007
Senior Notes [Member]
Parent Company [Member]
Convertible Senior Notes Due 2013 $575 Million 2.5% [Member]
USD ($)
May 3, 2012
Senior Notes [Member]
Parent Company [Member]
USD ($)
May 3, 2012
Senior Notes [Member]
Parent Company [Member]
Senior Notes Due 2017 $300M 2.0% [Member]
USD ($)
May 3, 2012
Senior Notes [Member]
Parent Company [Member]
Senior Notes Due 2022 $500M 3.5% [Member]
USD ($)
May 3, 2012
Senior Notes [Member]
Parent Company [Member]
Senior Notes Due 2042 $1.1B 5.0% [Member]
USD ($)
Sep. 22, 2005
Senior Notes [Member]
Issuer 2005 And Issuer 2010 [Member]
USD ($)
Dec. 25, 2010
Senior Notes [Member]
Issuer 2005 And Issuer 2010 [Member]
Senior Notes 4.85 Percent and 5 Percent due 2010 and 2015 [Member]
USD ($)
Sep. 22, 2005
Senior Notes [Member]
Issuer 2005 And Issuer 2010 [Member]
Senior Notes 4.85 Percent and 5 Percent due 2010 and 2015 [Member]
USD ($)
Sep. 22, 2005
Senior Notes [Member]
Issuer 2005 And Issuer 2010 [Member]
Series A notes due 2017 CAD 500 million 3.95% [Member]
CAD ($)
Mar. 30, 2013
Minimum [Member]
weeks
Mar. 30, 2013
Maximum [Member]
weeks
Dec. 29, 2012
Scenario, Previously Reported [Member]
Parent Guarantor, 2007 and 2012 Issuer [Member]
USD ($)
Debt instrument, face amount
 
 
$ 575 
 
 
$ 575 
$ 575 
$ 500 
$ 575 
$ 1,900 
$ 300 
$ 500 
$ 1,100 
$ 1,100 
 
$ 300 
$ 900 
 
 
 
Investments in and Advance to Affiliates, Subsidiaries, Associates, and Joint Ventures
 
 
 
10,346.2 
10,465.2 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
11,342.2 
Stockholders' Equity Attributable to Parent
7,771.1 
7,966.9 
 
7,771.1 
7,966.9 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
8,843.9 
Debt instrument, interest rate percentage
 
 
 
 
 
2.50% 
2.50% 
3.95% 
2.50% 
 
2.00% 
3.50% 
5.00% 
 
 
4.85% 
5.00% 
 
 
 
Repayments of Long-term Debt, Long-term Capital Lease Obligations, and Capital Securities
 
 
 
 
 
 
 
 
 
 
 
 
 
 
$ 300 
 
 
 
 
 
Number of Weeks in Reporting Period
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
13 
13 
 
Supplemental Guarantor Information Income statement (Details) (USD $)
In Millions, unless otherwise specified
3 Months Ended
Mar. 30, 2013
Mar. 31, 2012
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
 
 
Sales
$ 1,184.8 
$ 1,008.1 
Excise taxes
(356.3)
(316.7)
Net sales
828.5 
691.4 
Cost of goods sold
(547.1)
(438.8)
Gross profit
281.4 
252.6 
Marketing, general and administrative expenses
(285.3)
(248.2)
Special items, net
(1.5)
(1.5)
Equity income in MillerCoors
117.4 
118.9 
Operating income (loss)
112.0 
121.8 
Interest income (expense), net
(74.9)
(23.8)
Other income (expense), net
4.3 
(1.4)
Income (loss) from continuing operations before income taxes
41.4 
96.6 
Income tax benefit (expense)
(3.5)
(17.3)
Net Income (loss) from continuing operations
37.9 
79.3 
Income (loss) from discontinued operations, net of tax
(0.9)
0.1 
Net income (loss) including noncontrolling interests
37.0 
79.4 
Add back (less): Loss (net income) attributable to noncontrolling interests
 
0.1 
Net income (loss) attributable to MCBC
35.6 
79.5 
Comprehensive income attributable to MCBC
(206.2)
190.6 
Parent Guarantor, 2007 and 2012 Issuer [Member]
 
 
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
 
 
Sales
3.9 
5.5 
Excise taxes
Net sales
3.9 
5.5 
Cost of goods sold
Gross profit
3.9 
5.5 
Marketing, general and administrative expenses
(37.1)
(34.5)
Special items, net
(0.3)
(1.1)
Equity income (loss) in subsidiaries
103.5 
85.0 
Equity income in MillerCoors
Operating income (loss)
70.0 
54.9 
Interest income (expense), net
(26.0)
Other income (expense), net
(13.6)
12.0 
Income (loss) from continuing operations before income taxes
30.4 
66.9 
Income tax benefit (expense)
5.2 
12.6 
Net Income (loss) from continuing operations
35.6 
79.5 
Income (loss) from discontinued operations, net of tax
Net income (loss) including noncontrolling interests
35.6 
79.5 
Add back (less): Loss (net income) attributable to noncontrolling interests
Net income (loss) attributable to MCBC
35.6 
79.5 
Comprehensive income attributable to MCBC
(206.2)
190.6 
Subsidiary Guarantors
 
 
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
 
 
Sales
972.8 
982.7 
Excise taxes
(303.8)
(303.9)
Net sales
669.0 
678.8 
Cost of goods sold
(427.7)
(416.6)
Gross profit
241.3 
262.2 
Marketing, general and administrative expenses
(179.0)
(202.0)
Special items, net
(0.8)
(0.4)
Equity income (loss) in subsidiaries
(146.4)
(117.6)
Equity income in MillerCoors
117.4 
118.9 
Operating income (loss)
32.5 
61.1 
Interest income (expense), net
48.1 
74.1 
Other income (expense), net
30.8 
(12.6)
Income (loss) from continuing operations before income taxes
111.4 
122.6 
Income tax benefit (expense)
(8.0)
(37.7)
Net Income (loss) from continuing operations
103.4 
84.9 
Income (loss) from discontinued operations, net of tax
Net income (loss) including noncontrolling interests
103.4 
84.9 
Add back (less): Loss (net income) attributable to noncontrolling interests
Net income (loss) attributable to MCBC
103.4 
84.9 
Comprehensive income attributable to MCBC
(119.3)
219.4 
Subsidiary Non-Guarantors
 
 
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
 
 
Sales
240.4 
59.7 
Excise taxes
(52.5)
(12.8)
Net sales
187.9 
46.9 
Cost of goods sold
(146.7)
(54.5)
Gross profit
41.2 
(7.6)
Marketing, general and administrative expenses
(74.2)
(19.2)
Special items, net
(0.4)
Equity income (loss) in subsidiaries
41.4 
26.0 
Equity income in MillerCoors
Operating income (loss)
8.0 
(0.8)
Interest income (expense), net
(97.0)
(97.9)
Other income (expense), net
(12.9)
(0.8)
Income (loss) from continuing operations before income taxes
(101.9)
(99.5)
Income tax benefit (expense)
(0.7)
7.8 
Net Income (loss) from continuing operations
(102.6)
(91.7)
Income (loss) from discontinued operations, net of tax
(0.9)
0.1 
Net income (loss) including noncontrolling interests
(103.5)
(91.6)
Add back (less): Loss (net income) attributable to noncontrolling interests
(1.4)
0.1 
Net income (loss) attributable to MCBC
(104.9)
(91.5)
Comprehensive income attributable to MCBC
(216.2)
(100.6)
Eliminations
 
 
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
 
 
Sales
(32.3)
(39.8)
Excise taxes
Net sales
(32.3)
(39.8)
Cost of goods sold
27.3 
32.3 
Gross profit
(5.0)
(7.5)
Marketing, general and administrative expenses
5.0 
7.5 
Special items, net
Equity income (loss) in subsidiaries
1.5 
6.6 
Equity income in MillerCoors
Operating income (loss)
1.5 
6.6 
Interest income (expense), net
Other income (expense), net
Income (loss) from continuing operations before income taxes
1.5 
6.6 
Income tax benefit (expense)
Net Income (loss) from continuing operations
1.5 
6.6 
Income (loss) from discontinued operations, net of tax
Net income (loss) including noncontrolling interests
1.5 
6.6 
Add back (less): Loss (net income) attributable to noncontrolling interests
Net income (loss) attributable to MCBC
1.5 
6.6 
Comprehensive income attributable to MCBC
335.5 
(118.8)
Consolidated [Member]
 
 
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
 
 
Sales
1,184.8 
1,008.1 
Excise taxes
(356.3)
(316.7)
Net sales
828.5 
691.4 
Cost of goods sold
(547.1)
(438.8)
Gross profit
281.4 
252.6 
Marketing, general and administrative expenses
(285.3)
(248.2)
Special items, net
(1.5)
(1.5)
Equity income (loss) in subsidiaries
Equity income in MillerCoors
117.4 
118.9 
Operating income (loss)
112.0 
121.8 
Interest income (expense), net
(74.9)
(23.8)
Other income (expense), net
4.3 
(1.4)
Income (loss) from continuing operations before income taxes
41.4 
96.6 
Income tax benefit (expense)
(3.5)
(17.3)
Net Income (loss) from continuing operations
37.9 
79.3 
Income (loss) from discontinued operations, net of tax
(0.9)
0.1 
Net income (loss) including noncontrolling interests
37.0 
79.4 
Add back (less): Loss (net income) attributable to noncontrolling interests
(1.4)
0.1 
Net income (loss) attributable to MCBC
35.6 
79.5 
Comprehensive income attributable to MCBC
$ (206.2)
$ 190.6 
Supplemental Guarantor Information Balance Sheet (Details) (USD $)
In Millions, unless otherwise specified
Mar. 30, 2013
Dec. 29, 2012
Mar. 31, 2012
Dec. 31, 2011
Current assets:
 
 
 
 
Cash and cash equivalents
$ 511.5 
$ 624.0 
$ 836.3 
$ 1,078.9 
Accounts receivable, net
572.2 
660.5 
 
 
Other receivables, net
138.0 
92.9 
 
 
Total inventories, net
257.6 
213.9 
 
 
Other assets, net
141.5 
117.5 
 
 
Deferred tax assets
68.9 
39.2 
 
 
Total current assets
1,689.7 
1,748.0 
 
 
Properties, net
1,925.5 
1,995.9 
 
 
Goodwill
2,365.7 
2,453.1 
 
 
Other intangibles, net
7,028.3 
7,234.8 
 
 
Investment in MillerCoors
2,530.4 
2,431.8 
 
 
Deferred tax assets
189.8 
125.4 
 
 
Total assets
15,942.7 
16,212.2 
 
 
Current liabilities :
 
 
 
 
Accounts payable
455.5 
427.0 
 
 
Derivative hedging instruments
13.5 
6.0 
 
 
Deferred tax liabilities
168.9 
152.3 
 
 
Short-term borrowings and current portion of long-term debt
1,260.4 
1,245.6 
 
 
Discontinued operations
8.0 
7.9 
 
 
Total current liabilities
2,614.8 
2,598.7 
 
 
Long-term debt
3,390.8 
3,422.5 
 
 
Pension and post-retirement benefits
776.6 
833.0 
 
 
Derivative hedging instruments
206.5 
222.2 
 
 
Deferred tax liabilities
966.4 
948.5 
 
 
Discontinued operations
20.3 
20.0 
 
 
Total liabilities
8,145.8 
8,220.6 
 
 
MCBC stockholders' equity
7,771.1 
7,966.9 
 
 
Noncontrolling interests
25.8 
24.7 
 
 
Total equity
7,796.9 
7,991.6 
 
 
Total liabilities and equity
15,942.7 
16,212.2 
 
 
Parent Guarantor, 2007 and 2012 Issuer [Member]
 
 
 
 
Current assets:
 
 
 
 
Cash and cash equivalents
107.8 
189.8 
680.6 
601.1 
Accounts receivable, net
1.4 
1.7 
 
 
Other receivables, net
69.2 
22.7 
 
 
Total inventories, net
 
 
Other assets, net
8.9 
10.7 
 
 
Deferred tax assets
 
 
Intercompany accounts receivable
 
 
Total current assets
187.3 
224.9 
 
 
Properties, net
24.3 
25.1 
 
 
Goodwill
 
 
Other intangibles, net
 
 
Investment in MillerCoors
 
 
Net investment in and advances to subsidiaries
10,346.2 
10,465.2 
 
 
Deferred tax assets
68.7 
47.4 
 
 
Other assets, net
38.0 
38.6 
 
 
Total assets
10,664.5 
10,801.2 
 
 
Current liabilities :
 
 
 
 
Accounts payable
7.1 
6.9 
 
 
Accrued expenses and other liabilities
59.1 
57.1 
 
 
Derivative hedging instruments
10.6 
 
 
Deferred tax liabilities
12.4 
11.3 
 
 
Short-term borrowings and current portion of long-term debt
568.8 
564.2 
 
 
Discontinued operations
 
 
Intercompany accounts payable
1,170.9 
1,166.3 
 
 
Total current liabilities
1,828.9 
1,805.8 
 
 
Long-term debt
1,895.7 
1,895.6 
 
 
Pension and post-retirement benefits
3.4 
3.3 
 
 
Derivative hedging instruments
 
 
Deferred tax liabilities
 
 
Other liabilities, net
9.8 
6.6 
 
 
Discontinued operations
 
 
Intercompany notes payables
 
 
Total liabilities
3,737.8 
3,711.3 
 
 
MCBC stockholders' equity
7,771.1 
7,966.9 
 
 
Intercompany notes receivable
(844.4)
(877.0)
 
 
Total stockholders' equity
6,926.7 
7,089.9 
 
 
Noncontrolling interests
 
 
Total equity
6,926.7 
7,089.9 
 
 
Total liabilities and equity
10,664.5 
10,801.2 
 
 
Subsidiary Guarantors
 
 
 
 
Current assets:
 
 
 
 
Cash and cash equivalents
259.3 
249.3 
118.9 
422.5 
Accounts receivable, net
433.2 
524.7 
 
 
Other receivables, net
50.6 
54.6 
 
 
Total inventories, net
207.6 
172.5 
 
 
Other assets, net
83.7 
67.1 
 
 
Deferred tax assets
 
 
Intercompany accounts receivable
1,910.0 
2,077.8 
 
 
Total current assets
2,944.4 
3,146.0 
 
 
Properties, net
1,282.2 
1,338.9 
 
 
Goodwill
1,018.2 
1,068.5 
 
 
Other intangibles, net
4,476.7 
4,606.8 
 
 
Investment in MillerCoors
2,530.4 
2,431.8 
 
 
Net investment in and advances to subsidiaries
2,802.9 
2,291.6 
 
 
Deferred tax assets
151.9 
104.8 
 
 
Other assets, net
122.5 
125.0 
 
 
Total assets
15,329.2 
15,113.4 
 
 
Current liabilities :
 
 
 
 
Accounts payable
268.5 
250.4 
 
 
Accrued expenses and other liabilities
501.0 
537.3 
 
 
Derivative hedging instruments
2.8 
6.0 
 
 
Deferred tax liabilities
156.9 
142.5 
 
 
Short-term borrowings and current portion of long-term debt
678.3 
668.3 
 
 
Discontinued operations
 
 
Intercompany accounts payable
812.8 
1,133.3 
 
 
Total current liabilities
2,420.3 
2,737.8 
 
 
Long-term debt
1,374.5 
1,402.5 
 
 
Pension and post-retirement benefits
766.7 
823.1 
 
 
Derivative hedging instruments
206.5 
222.2 
 
 
Deferred tax liabilities
 
 
Other liabilities, net
57.3 
64.4 
 
 
Discontinued operations
 
 
Intercompany notes payables
1,067.9 
1,135.8 
 
 
Total liabilities
5,893.2 
6,385.8 
 
 
MCBC stockholders' equity
15,603.8 
15,036.7 
 
 
Intercompany notes receivable
(6,167.8)
(6,309.1)
 
 
Total stockholders' equity
9,436.0 
8,727.6 
 
 
Noncontrolling interests
 
 
Total equity
9,436.0 
8,727.6 
 
 
Total liabilities and equity
15,329.2 
15,113.4 
 
 
Subsidiary Non-Guarantors
 
 
 
 
Current assets:
 
 
 
 
Cash and cash equivalents
144.4 
184.9 
36.8 
55.3 
Accounts receivable, net
137.6 
134.1 
 
 
Other receivables, net
18.2 
15.6 
 
 
Total inventories, net
50.0 
41.4 
 
 
Other assets, net
48.9 
39.7 
 
 
Deferred tax assets
70.4 
40.7 
 
 
Intercompany accounts receivable
804.4 
1,137.5 
 
 
Total current assets
1,273.9 
1,593.9 
 
 
Properties, net
619.0 
631.9 
 
 
Goodwill
1,347.5 
1,384.6 
 
 
Other intangibles, net
2,551.6 
2,628.0 
 
 
Investment in MillerCoors
 
 
Net investment in and advances to subsidiaries
5,929.1 
5,291.7 
 
 
Deferred tax assets
0.8 
4.9 
 
 
Other assets, net
52.8 
59.6 
 
 
Total assets
11,774.7 
11,594.6 
 
 
Current liabilities :
 
 
 
 
Accounts payable
179.9 
169.7 
 
 
Accrued expenses and other liabilities
148.4 
165.5 
 
 
Derivative hedging instruments
0.1 
 
 
Deferred tax liabilities
1.1 
 
 
Short-term borrowings and current portion of long-term debt
13.3 
13.1 
 
 
Discontinued operations
8.0 
7.9 
 
 
Intercompany accounts payable
730.7 
915.7 
 
 
Total current liabilities
1,081.5 
1,271.9 
 
 
Long-term debt
120.6 
124.4 
 
 
Pension and post-retirement benefits
6.5 
6.6 
 
 
Derivative hedging instruments
 
 
Deferred tax liabilities
998.0 
980.2 
 
 
Other liabilities, net
103.3 
104.7 
 
 
Discontinued operations
20.3 
20.0 
 
 
Intercompany notes payables
6,810.7 
6,971.9 
 
 
Total liabilities
9,140.9 
9,479.7 
 
 
MCBC stockholders' equity
3,474.4 
3,011.8 
 
 
Intercompany notes receivable
(866.4)
(921.6)
 
 
Total stockholders' equity
2,608.0 
2,090.2 
 
 
Noncontrolling interests
25.8 
24.7 
 
 
Total equity
2,633.8 
2,114.9 
 
 
Total liabilities and equity
11,774.7 
11,594.6 
 
 
Eliminations
 
 
 
 
Current assets:
 
 
 
 
Cash and cash equivalents
Accounts receivable, net
 
 
Other receivables, net
 
 
Total inventories, net
 
 
Other assets, net
 
 
Deferred tax assets
(1.5)
(1.5)
 
 
Intercompany accounts receivable
(2,714.4)
(3,215.3)
 
 
Total current assets
(2,715.9)
(3,216.8)
 
 
Properties, net
 
 
Goodwill
 
 
Other intangibles, net
 
 
Investment in MillerCoors
 
 
Net investment in and advances to subsidiaries
(19,078.2)
(18,048.5)
 
 
Deferred tax assets
(31.6)
(31.7)
 
 
Other assets, net
 
 
Total assets
(21,825.7)
(21,297.0)
 
 
Current liabilities :
 
 
 
 
Accounts payable
 
 
Accrued expenses and other liabilities
 
 
Derivative hedging instruments
 
 
Deferred tax liabilities
(1.5)
(1.5)
 
 
Short-term borrowings and current portion of long-term debt
 
 
Discontinued operations
 
 
Intercompany accounts payable
(2,714.4)
(3,215.3)
 
 
Total current liabilities
(2,715.9)
(3,216.8)
 
 
Long-term debt
 
 
Pension and post-retirement benefits
 
 
Derivative hedging instruments
 
 
Deferred tax liabilities
(31.6)
(31.7)
 
 
Other liabilities, net
 
 
Discontinued operations
 
 
Intercompany notes payables
(7,878.6)
(8,107.7)
 
 
Total liabilities
(10,626.1)
(11,356.2)
 
 
MCBC stockholders' equity
(19,078.2)
(18,048.5)
 
 
Intercompany notes receivable
7,878.6 
8,107.7 
 
 
Total stockholders' equity
(11,199.6)
(9,940.8)
 
 
Noncontrolling interests
 
 
Total equity
(11,199.6)
(9,940.8)
 
 
Total liabilities and equity
(21,825.7)
(21,297.0)
 
 
Consolidated [Member]
 
 
 
 
Current assets:
 
 
 
 
Cash and cash equivalents
511.5 
624.0 
836.3 
1,078.9 
Accounts receivable, net
572.2 
660.5 
 
 
Other receivables, net
138.0 
92.9 
 
 
Total inventories, net
257.6 
213.9 
 
 
Other assets, net
141.5 
117.5 
 
 
Deferred tax assets
68.9 
39.2 
 
 
Intercompany accounts receivable
 
 
Total current assets
1,689.7 
1,748.0 
 
 
Properties, net
1,925.5 
1,995.9 
 
 
Goodwill
2,365.7 
2,453.1 
 
 
Other intangibles, net
7,028.3 
7,234.8 
 
 
Investment in MillerCoors
2,530.4 
2,431.8 
 
 
Net investment in and advances to subsidiaries
 
 
Deferred tax assets
189.8 
125.4 
 
 
Other assets, net
213.3 
223.2 
 
 
Total assets
15,942.7 
16,212.2 
 
 
Current liabilities :
 
 
 
 
Accounts payable
455.5 
427.0 
 
 
Accrued expenses and other liabilities
708.5 
759.9 
 
 
Derivative hedging instruments
13.5 
6.0 
 
 
Deferred tax liabilities
168.9 
152.3 
 
 
Short-term borrowings and current portion of long-term debt
1,260.4 
1,245.6 
 
 
Discontinued operations
8.0 
7.9 
 
 
Intercompany accounts payable
 
 
Total current liabilities
2,614.8 
2,598.7 
 
 
Long-term debt
3,390.8 
3,422.5 
 
 
Pension and post-retirement benefits
776.6 
833.0 
 
 
Derivative hedging instruments
206.5 
222.2 
 
 
Deferred tax liabilities
966.4 
948.5 
 
 
Other liabilities, net
170.4 
175.7 
 
 
Discontinued operations
20.3 
20.0 
 
 
Intercompany notes payables
 
 
Total liabilities
8,145.8 
8,220.6 
 
 
MCBC stockholders' equity
7,771.1 
7,966.9 
 
 
Intercompany notes receivable
 
 
Total stockholders' equity
7,771.1 
7,966.9 
 
 
Noncontrolling interests
25.8 
24.7 
 
 
Total equity
7,796.9 
7,991.6 
 
 
Total liabilities and equity
$ 15,942.7 
$ 16,212.2 
 
 
Supplemental Guarantor Information Cash Flows (Details) (USD $)
In Millions, unless otherwise specified
3 Months Ended
Mar. 30, 2013
Mar. 31, 2012
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
 
 
Net cash provided by (used in) operating activities
$ 118.4 
$ 50.4 
Cash flows from investing activities:
 
 
Additions to properties
(68.3)
(33.8)
Proceeds from sales of properties and intangible assets
3.7 
0.8 
Investment in MillerCoors
(331.8)
(236.0)
Investment in and advances to an unconsolidated affiliate
(4.6)
Trade loan repayments from customers
2.6 
3.8 
Trade loans advanced to customers
(2.5)
(2.4)
Net cash provided by (used in) investing activities
(173.9)
(258.2)
Cash flows from financing activities:
 
 
Exercise of stock options under equity compensation plans
27.2 
19.7 
Excess tax benefits from share-based compensation
1.6 
3.3 
Dividends paid
(58.2)
(57.8)
Dividends paid to noncontrolling interests holders
(1.7)
Payments on long-term debt and capital lease obligations
(0.1)
Payments on short-term borrowings
(13.8)
(10.8)
Net (payments) proceeds from revolving credit facilities
(1.2)
1.5 
Net cash provided by (used in) financing activities
(35.2)
(45.9)
Cash and cash equivalents:
 
 
Net increase (decrease) in cash and cash equivalents
(90.7)
(253.7)
Effect of foreign exchange rate changes on cash and cash equivalents
(21.8)
11.1 
Balance at beginning of year
624.0 
1,078.9 
Balance at end of period
511.5 
836.3 
Parent Guarantor, 2007 and 2012 Issuer [Member]
 
 
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
 
 
Net cash provided by (used in) operating activities
(58.0)
155.3 
Cash flows from investing activities:
 
 
Additions to properties
(1.6)
(1.1)
Proceeds from sales of properties and intangible assets
Investment in MillerCoors
Return of capital from MillerCoors
Proceeds from (payments on) settlement of derivatives
 
Investment in and advances to an unconsolidated affiliate
 
Trade loan repayments from customers
Trade loans advanced to customers
Net intercompany investing activity
(39.9)
Net cash provided by (used in) investing activities
(1.6)
(41.0)
Cash flows from financing activities:
 
 
Exercise of stock options under equity compensation plans
27.2 
19.7 
Excess tax benefits from share-based compensation
1.6 
3.3 
Dividends paid
(51.2)
57.8 
Dividends paid to noncontrolling interests holders
Payments on long-term debt and capital lease obligations
 
Proceeds from short-term borrowings
 
Payments on short-term borrowings
Net (payments) proceeds from revolving credit facilities
Changes in overdraft balances and other
 
Net intercompany financing activity
Net cash provided by (used in) financing activities
(22.4)
(34.8)
Cash and cash equivalents:
 
 
Net increase (decrease) in cash and cash equivalents
(82.0)
79.5 
Effect of foreign exchange rate changes on cash and cash equivalents
Balance at beginning of year
189.8 
601.1 
Balance at end of period
107.8 
680.6 
Subsidiary Guarantors
 
 
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
 
 
Net cash provided by (used in) operating activities
174.6 
(214.6)
Cash flows from investing activities:
 
 
Additions to properties
(30.2)
(29.6)
Proceeds from sales of properties and intangible assets
1.2 
0.8 
Investment in MillerCoors
(331.8)
(236.0)
Return of capital from MillerCoors
222.4 
(124.6)
Proceeds from (payments on) settlement of derivatives
 
(110.6)
Investment in and advances to an unconsolidated affiliate
 
(2.5)
Trade loan repayments from customers
2.6 
3.8 
Trade loans advanced to customers
(2.5)
(2.4)
Net intercompany investing activity
(9.4)
116.4 
Net cash provided by (used in) investing activities
(147.7)
(135.5)
Cash flows from financing activities:
 
 
Exercise of stock options under equity compensation plans
Excess tax benefits from share-based compensation
Dividends paid
1.6 
Dividends paid to noncontrolling interests holders
1.7 
Payments on long-term debt and capital lease obligations
 
(0.1)
Proceeds from short-term borrowings
 
Payments on short-term borrowings
Net (payments) proceeds from revolving credit facilities
Changes in overdraft balances and other
(0.2)
 
Net intercompany financing activity
39.7 
Net cash provided by (used in) financing activities
(0.2)
36.3 
Cash and cash equivalents:
 
 
Net increase (decrease) in cash and cash equivalents
26.7 
(313.8)
Effect of foreign exchange rate changes on cash and cash equivalents
(16.7)
10.2 
Balance at beginning of year
249.3 
422.5 
Balance at end of period
259.3 
118.9 
Subsidiary Non-Guarantors
 
 
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
 
 
Net cash provided by (used in) operating activities
2.5 
111.3 
Cash flows from investing activities:
 
 
Additions to properties
(36.5)
(3.1)
Proceeds from sales of properties and intangible assets
2.5 
Investment in MillerCoors
Return of capital from MillerCoors
Proceeds from (payments on) settlement of derivatives
 
Investment in and advances to an unconsolidated affiliate
 
(2.1)
Trade loan repayments from customers
Trade loans advanced to customers
Net intercompany investing activity
Net cash provided by (used in) investing activities
(34.0)
(5.2)
Cash flows from financing activities:
 
 
Exercise of stock options under equity compensation plans
Excess tax benefits from share-based compensation
Dividends paid
(7.7)
Dividends paid to noncontrolling interests holders
(0.2)
Payments on long-term debt and capital lease obligations
 
Proceeds from short-term borrowings
5.9 
 
Payments on short-term borrowings
(13.8)
10.8 
Net (payments) proceeds from revolving credit facilities
(1.2)
1.5 
Changes in overdraft balances and other
3.7 
 
Net intercompany financing activity
9.4 
(116.2)
Net cash provided by (used in) financing activities
(3.9)
(125.5)
Cash and cash equivalents:
 
 
Net increase (decrease) in cash and cash equivalents
(35.4)
(19.4)
Effect of foreign exchange rate changes on cash and cash equivalents
(5.1)
0.9 
Balance at beginning of year
184.9 
55.3 
Balance at end of period
144.4 
36.8 
Eliminations
 
 
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
 
 
Net cash provided by (used in) operating activities
(0.7)
(1.6)
Cash flows from investing activities:
 
 
Additions to properties
Proceeds from sales of properties and intangible assets
Investment in MillerCoors
Return of capital from MillerCoors
Proceeds from (payments on) settlement of derivatives
 
Investment in and advances to an unconsolidated affiliate
 
Trade loan repayments from customers
Trade loans advanced to customers
Net intercompany investing activity
9.4 
(76.5)
Net cash provided by (used in) investing activities
9.4 
(76.5)
Cash flows from financing activities:
 
 
Exercise of stock options under equity compensation plans
Excess tax benefits from share-based compensation
Dividends paid
0.7 
(1.6)
Dividends paid to noncontrolling interests holders
Payments on long-term debt and capital lease obligations
 
Proceeds from short-term borrowings
 
Payments on short-term borrowings
Net (payments) proceeds from revolving credit facilities
Changes in overdraft balances and other
 
Net intercompany financing activity
(9.4)
76.5 
Net cash provided by (used in) financing activities
(8.7)
78.1 
Cash and cash equivalents:
 
 
Net increase (decrease) in cash and cash equivalents
Effect of foreign exchange rate changes on cash and cash equivalents
Balance at beginning of year
Balance at end of period
Consolidated [Member]
 
 
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
 
 
Net cash provided by (used in) operating activities
118.4 
50.4 
Cash flows from investing activities:
 
 
Additions to properties
(68.3)
(33.8)
Proceeds from sales of properties and intangible assets
3.7 
0.8 
Investment in MillerCoors
(331.8)
(236.0)
Return of capital from MillerCoors
222.4 
(124.6)
Proceeds from (payments on) settlement of derivatives
 
(110.6)
Investment in and advances to an unconsolidated affiliate
 
(4.6)
Trade loan repayments from customers
2.6 
3.8 
Trade loans advanced to customers
(2.5)
(2.4)
Net intercompany investing activity
Net cash provided by (used in) investing activities
(173.9)
(258.2)
Cash flows from financing activities:
 
 
Exercise of stock options under equity compensation plans
27.2 
19.7 
Excess tax benefits from share-based compensation
1.6 
3.3 
Dividends paid
(58.2)
57.8 
Dividends paid to noncontrolling interests holders
(0.2)
1.7 
Payments on long-term debt and capital lease obligations
 
(0.1)
Proceeds from short-term borrowings
5.9 
 
Payments on short-term borrowings
(13.8)
10.8 
Net (payments) proceeds from revolving credit facilities
(1.2)
1.5 
Changes in overdraft balances and other
3.5 
 
Net intercompany financing activity
Net cash provided by (used in) financing activities
(35.2)
(45.9)
Cash and cash equivalents:
 
 
Net increase (decrease) in cash and cash equivalents
(90.7)
(253.7)
Effect of foreign exchange rate changes on cash and cash equivalents
(21.8)
11.1 
Balance at beginning of year
624.0 
1,078.9 
Balance at end of period
$ 511.5 
$ 836.3 
Accumulated Other Comprehensive Income (Loss) Table 1 (Details) (USD $)
In Millions, unless otherwise specified
3 Months Ended
Mar. 30, 2013
Mar. 31, 2012
Accumulated Other Comprehensive Income (Loss) [Roll Forward]
 
 
Balance at December 29, 2012
$ (72.3)
 
Foreign currency translation adjustments
(268.7)
 
Unrealized gain (loss) on derivative instruments
23.7 
 
Reclassification of derivative losses to income
0.2 
 
Amortization of net prior service costs and net actuarial losses to income
13.5 
 
Ownership share of unconsolidated subsidiaries' other comprehensive income (loss)
(10.8)
 
Tax benefit (expense)
0.3 
 
Total other comprehensive income (loss), net of tax
(241.8)
111.1 
Balance at March 30, 2013
(279.8)
 
Foreign currency translation adjustments
 
 
Accumulated Other Comprehensive Income (Loss) [Roll Forward]
 
 
Balance at December 29, 2012
1,187.5 
 
Foreign currency translation adjustments
(268.7)
 
Unrealized gain (loss) on derivative instruments
 
Reclassification of derivative losses to income
 
Amortization of net prior service costs and net actuarial losses to income
 
Ownership share of unconsolidated subsidiaries' other comprehensive income (loss)
 
Tax benefit (expense)
7.4 
 
Balance at March 30, 2013
926.2 
 
Gain (loss) on derivative instruments
 
 
Accumulated Other Comprehensive Income (Loss) [Roll Forward]
 
 
Balance at December 29, 2012
(17.7)
 
Foreign currency translation adjustments
 
Unrealized gain (loss) on derivative instruments
23.7 
 
Reclassification of derivative losses to income
0.2 
 
Amortization of net prior service costs and net actuarial losses to income
 
Ownership share of unconsolidated subsidiaries' other comprehensive income (loss)
 
Tax benefit (expense)
(10.7)
 
Balance at March 30, 2013
(4.5)
 
Pension and postretirement benefit adjustments
 
 
Accumulated Other Comprehensive Income (Loss) [Roll Forward]
 
 
Balance at December 29, 2012
(844.1)
 
Foreign currency translation adjustments
 
Unrealized gain (loss) on derivative instruments
 
Reclassification of derivative losses to income
 
Amortization of net prior service costs and net actuarial losses to income
13.5 
 
Ownership share of unconsolidated subsidiaries' other comprehensive income (loss)
 
Tax benefit (expense)
(0.5)
 
Balance at March 30, 2013
(831.1)
 
Equity method investments
 
 
Accumulated Other Comprehensive Income (Loss) [Roll Forward]
 
 
Balance at December 29, 2012
(398.0)
 
Foreign currency translation adjustments
 
Unrealized gain (loss) on derivative instruments
 
Reclassification of derivative losses to income
 
Amortization of net prior service costs and net actuarial losses to income
 
Ownership share of unconsolidated subsidiaries' other comprehensive income (loss)
(10.8)
 
Tax benefit (expense)
4.1 
 
Balance at March 30, 2013
(370.4)
 
Accumulated Other Comprehensive Income (Loss) [Member]
 
 
Accumulated Other Comprehensive Income (Loss) [Roll Forward]
 
 
Equity Method Investment, Increase (Decrease) due to Reclassification
34.3 
 
Equity method investments
 
 
Accumulated Other Comprehensive Income (Loss) [Roll Forward]
 
 
Equity Method Investment, Increase (Decrease) due to Reclassification
34.3 
 
Accumulated Translation Adjustment [Member]
 
 
Accumulated Other Comprehensive Income (Loss) [Roll Forward]
 
 
Equity Method Investment, Increase (Decrease) due to Reclassification
 
Accumulated Net Gain (Loss) from Designated or Qualifying Cash Flow Hedges [Member]
 
 
Accumulated Other Comprehensive Income (Loss) [Roll Forward]
 
 
Equity Method Investment, Increase (Decrease) due to Reclassification
 
Accumulated Defined Benefit Plans Adjustment [Member]
 
 
Accumulated Other Comprehensive Income (Loss) [Roll Forward]
 
 
Equity Method Investment, Increase (Decrease) due to Reclassification
$ 0 
 
Accumulated Other Comprehensive Income (Loss) Table 2 (Details) (USD $)
In Millions, unless otherwise specified
3 Months Ended
Mar. 30, 2013
Mar. 31, 2012
Derivative instruments, losses reclassified from accumulated OCI to income, before tax
$ (0.2)
 
Derivative instruments, losses reclassified from accumulated OCI to income, tax
0.1 
 
Derivative instruments, losses reclassified from accumulated OCI to income, net of tax
(0.1)
 
Amortization of Defined Denefit Plan Items [Abstract]
 
 
Amortization of prior service cost (credit), reclassified from accumulated OCI to income
0.7 1
 
Amortization of net actuarial losses, reclassified from accumulated OCI to income
(14.2)1
 
Amortization of defined benefit pension items, reclassified from accumulated OCI to income, before tax
(13.5)
 
Amortization of defined benefit pension items, reclassified from accumulated OCI to income, tax
2.9 
 
Amortization of defined benefit pension items, reclassified from accumulated OCI to income, net of tax
(10.6)
 
Total reclassifications to income
(10.7)
 
Cash Flow Hedging [Member]
 
 
Derivative instruments, losses reclassified from accumulated OCI to income
(0.2)
(2.4)
Cost of Sales [Member] |
Cash Flow Hedging [Member] |
Commodity Contract [Member]
 
 
Derivative instruments, losses reclassified from accumulated OCI to income
$ (0.2)
$ (0.3)