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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 |
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. |
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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. |
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. |
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 |
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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 |
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. |
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 |
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. |
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 | 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 |
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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. |
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 |
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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. |
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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 |
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 |
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 |
Fiscal year | Amount | ||
(In millions) | |||
2013 - remaining | $ | 34.9 | |
2014 | $ | 38.7 | |
2015 | $ | 36.2 | |
2016 | $ | 36.2 | |
2017 | $ | 22.3 |
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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. |
(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. |
(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. |
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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 | ) |
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 | ) |
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. |
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 | ) |
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 | $ | — | $ | — |
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 | ) | $ | — | $ | — |
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 |
|
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 |
|
• | 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. |
|
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 | ) |
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 |
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 |
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 |
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 |
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 |
|
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 | 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. |
|
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 |
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. |
|
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. |
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. |
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 |
|
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 |
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. |
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 |
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. |
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 | 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 |
|
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. |
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 |
|
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. |
|
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 |
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 |
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 |
Fiscal year | Amount | ||
(In millions) | |||
2013 - remaining | $ | 34.9 | |
2014 | $ | 38.7 | |
2015 | $ | 36.2 | |
2016 | $ | 36.2 | |
2017 | $ | 22.3 |
|
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. |
(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. |
(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. |
|
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 | ) |
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 | ) |
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. |
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 | ) |
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 | $ | — | $ | — |
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 | ) | $ | — | $ | — |
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 |
|
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 |
|
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 | ) |
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 |
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 |
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 |
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 |
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 |
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MCBC shareholders | |||||||||||||||||||
Foreign currency translation adjustments | Gain (loss) on derivative instruments | Pension and postretirement benefit adjustments | Equity method investments | Accumulated other comprehensive income (loss) | |||||||||||||||
(In millions) | |||||||||||||||||||
As of December 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 | 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. |
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