MOLSON COORS BREWING CO, 10-Q filed on 5/9/2012
Quarterly Report
Document and Entity Information Document
3 Months Ended
Mar. 31, 2012
May 3, 2012
Class A common stock, voting
May 3, 2012
Class B common stock, non-voting
May 3, 2012
Class A exchangeable shares
May 3, 2012
Class B exchangeable shares
Document Information [Line Items]
 
 
 
 
 
Entity Registrant Name
MOLSON COORS BREWING CO 
 
 
 
 
Entity Central Index Key
0000024545 
 
 
 
 
Document Type
10-Q 
 
 
 
 
Document Period End Date
Mar. 31, 2012 
 
 
 
 
Amendment Flag
false 
 
 
 
 
Current Fiscal Year End Date
--12-29 
 
 
 
 
Entity Current Reporting Status
Yes 
 
 
 
 
Entity Filer Category
Large Accelerated Filer 
 
 
 
 
Entity Common Stock, Shares Outstanding
 
2,583,694 
155,875,044 
 
 
Entity Exchangeable Shares Outstanding
 
 
 
2,939,704 
19,260,784 
Document Fiscal Year Focus
2012 
 
 
 
 
Document Fiscal Period Focus
Q1 
 
 
 
 
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (USD $)
In Millions, except Per Share data, unless otherwise specified
3 Months Ended
Mar. 31, 2012
Mar. 26, 2011
Sales
$ 1,008.1 
$ 997.3 
Excise taxes
(316.7)
(306.9)
Net sales
691.4 
690.4 
Cost of goods sold
(438.8)
(427.2)
Gross profit
252.6 
263.2 
Marketing, general and administrative expenses
(248.2)
(238.4)
Special items, net
(1.5)
0 
Equity income in MillerCoors
118.9 
101.2 
Operating income (loss)
121.8 
126.0 
Interest income (expense), net
(23.8)
(26.8)
Other income (expense), net
(1.4)
(0.7)
Income (loss) from continuing operations before income taxes
96.6 
98.5 
Income tax benefit (expense)
(17.3)
(16.1)
Net Income (loss) from continuing operations
79.3 
82.4 
Income (loss) from discontinued operations, net of tax
0.1 
0.3 
Net income (loss) including noncontrolling interests
79.4 
82.7 
Less: Net (income) loss attributable to noncontrolling interests
0.1 
0.2 
Net income (loss) attributable to Molson Coors Brewing Company
79.5 
82.9 
Basic net income (loss) attributable to Molson Coors Brewing Company per share:
 
 
From continuing operations (in dollars per share)
$ 0.44 
$ 0.44 
From discontinued operations (in dollars per share)
$ 0.00 
$ 0.00 
Basic net income per share (in dollars per share)
$ 0.44 
$ 0.44 
Diluted net income (loss) attributable to Molson Coors Brewing Company per share:
 
 
From continuing operations (in dollars per share)
$ 0.44 
$ 0.44 
From discontinued operations (in dollars per share)
$ 0.00 
$ 0.00 
Diluted net income per share (in dollars per share)
$ 0.44 
$ 0.44 
Weighted average shares - basic (in shares)
180.3 
186.9 
Weighted average shares - diluted (in shares)
181.7 
188.7 
Amounts attributable to Molson Coors Brewing Company
 
 
Net income (loss) from continuing operations
79.4 
82.6 
Income (loss) from discontinued operations, net of tax
0.1 
0.3 
Net income (loss) attributable to Molson Coors Brewing Company
$ 79.5 
$ 82.9 
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (USD $)
In Millions, unless otherwise specified
3 Months Ended
Mar. 31, 2012
Mar. 26, 2011
Net income (loss) including noncontrolling interests
$ 79.4 
$ 82.7 
Other Comprehensive Income (Loss), Net of Tax [Abstract]
 
 
Foreign currency translation adjustments, net of tax
107.8 
161.7 
Amortization of net prior service cost and net actuarial losses, net of tax
9.9 
0.9 
Unrealized (loss) gain on derivative instruments, net of tax
(17.8)
(7.5)
Reclassification adjustment on derivative instruments, net of tax
1.8 
2.5 
Ownership share of unconsolidated subsidiaries' other comprehensive income (loss), net of tax
9.4 
12.9 
Total other comprehensive income (loss), net of tax
111.1 
170.5 
Comprehensive income (loss)
190.5 
253.2 
Less: Comprehensive (income) loss attributable to the noncontrolling interests
0.1 
0.2 
Comprehensive income (loss) attributable to MCBC
$ 190.6 
$ 253.4 
CONDENSED CONSOLIDATED BALANCE SHEETS (USD $)
In Millions, unless otherwise specified
Mar. 31, 2012
Dec. 31, 2011
Current assets:
 
 
Cash and cash equivalents
$ 836.3 
$ 1,078.9 
Accounts receivable, net
512.4 
588.8 
Other receivables, net
133.7 
137.2 
Inventories:
 
 
Finished, net
181.3 
140.7 
In process
19.0 
15.3 
Raw materials
46.7 
41.8 
Packaging materials, net
9.4 
9.4 
Total inventories, net
256.4 
207.2 
Other assets, net
108.7 
94.0 
Deferred tax assets
26.4 
11.6 
Discontinued operations
0.3 
0.3 
Total current assets
1,874.2 
2,118.0 
Properties, net
1,455.3 
1,430.1 
Goodwill
1,491.5 
1,453.3 
Other intangibles, net
4,682.8 
4,586.0 
Investment in MillerCoors
2,613.1 
2,487.9 
Deferred tax assets
128.5 
149.9 
Notes receivable, net
32.0 
32.7 
Other assets
158.8 
165.9 
Total assets
12,436.2 
12,423.8 
Current liabilities :
 
 
Accounts payable
205.6 
301.2 
Accrued expenses and other liabilities
612.0 
646.8 
Derivative hedging instruments
11.4 
107.6 
Deferred tax liabilities
169.1 
161.3 
Current portion of long-term debt and short-term borrowings
48.2 
46.9 
Discontinued operations
13.7 
13.4 
Total current liabilities
1,060.0 
1,277.2 
Long-term debt
1,950.4 
1,914.9 
Pension and post-retirement benefits
708.1 
697.5 
Derivative hedging instruments
222.6 
212.5 
Deferred tax liabilities
474.9 
455.6 
Unrecognized tax benefits
79.9 
76.4 
Other liabilities
70.0 
77.5 
Discontinued operations
22.4 
22.0 
Total liabilities
4,588.3 
4,733.6 
Commitments and contingencies (Note 15)
   
   
Capital stock:
 
 
Preferred stock, non-voting, no par value (authorized: 25.0 shares; none issued)
0 
0 
Paid-in capital
3,598.7 
3,572.1 
Retained earnings
3,711.4 
3,689.7 
Accumulated other comprehensive income (loss)
(18.6)
(129.7)
Class B common stock held in treasury at cost (7.5 shares at March 31, 2012 and December 31, 2011)
(321.1)
(321.1)
Total Molson Coors Brewing Company stockholders' equity
7,807.3 
7,647.9 
Noncontrolling interests
40.6 
42.3 
Total equity
7,847.9 
7,690.2 
Total liabilities and equity
12,436.2 
12,423.8 
Class A common stock, voting
 
 
Capital stock:
 
 
Common stock
0 
0 
Class B common stock, non-voting
 
 
Capital stock:
 
 
Common stock
1.6 
1.6 
Class A exchangeable shares
 
 
Capital stock:
 
 
Exchangeable shares
110.5 
110.5 
Class B exchangeable shares
 
 
Capital stock:
 
 
Exchangeable shares
$ 724.8 
$ 724.8 
CONDENSED CONSOLIDATED BALANCE SHEETS (PARENTHETICAL) (USD $)
In Millions, except Per Share data, unless otherwise specified
Mar. 31, 2012
Dec. 31, 2011
Preferred stock, non-voting, authorized shares
25.0 
25.0 
Preferred stock, non-voting, issued shares
0 
0 
Class B common stock held in treasury
7.5 
7.5 
Class A common stock, voting
 
 
Common stock, par value
$ 0.01 
$ 0.01 
Common stock, authorized shares
500.0 
500.0 
Common stock, issued shares
2.6 
2.6 
Common stock, outstanding shares
2.6 
2.6 
Class B common stock, non-voting
 
 
Common stock, par value
$ 0.01 
$ 0.01 
Common stock, authorized shares
500.0 
500.0 
Common stock, issued shares
163.4 
162.7 
Class A exchangeable shares
 
 
Exchangeable shares, issued shares
2.9 
2.9 
Exchangeable shares, outstanding shares
2.9 
2.9 
Class B exchangeable shares
 
 
Exchangeable shares, issued shares
19.3 
19.3 
Exchangeable shares, outstanding shares
19.3 
19.3 
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (USD $)
In Millions, unless otherwise specified
3 Months Ended
Mar. 31, 2012
Mar. 26, 2011
Cash flows from operating activities:
 
 
Net income (loss) including noncontrolling interests
$ 79.4 
$ 82.7 
Adjustments to reconcile net income to net cash provided by operating activities:
 
 
Depreciation and amortization
53.4 
51.0 
Amortization of debt issuance costs and discounts
5.6 
5.3 
Share-based compensation
4.8 
8.3 
Loss on sale or impairment of properties and intangibles
1.0 
2.2 
Deferred income taxes
4.3 
1.5 
Equity income in MillerCoors
(118.9)
(101.2)
Distributions from MillerCoors
118.9 
101.2 
Equity in net income of other unconsolidated affiliates
(0.1)
(3.2)
Distributions from other unconsolidated affiliates
11.8 
6.5 
Excess tax benefits from share-based compensation
(3.3)
(0.8)
Change in current assets and liabilities and other
(106.4)
(108.2)
(Gain) loss from discontinued operations
(0.1)
(0.3)
Net cash provided by operating activities
50.4 
45.0 
Cash flows from investing activities:
 
 
Additions to properties
(33.8)
(34.3)
Proceeds from sales of properties and intangible assets
0.8 
1.2 
Acquisition of businesses, net of cash acquired
0 
(29.4)
Investment in MillerCoors
(236.0)
(277.2)
Return of capital from MillerCoors
124.6 
177.5 
Proceeds from settlements of derivative instruments
0 
15.4 
Payments on settlements of derivatives
(110.6)
0 
Investment in and advances to an unconsolidated affiliate
(4.6)
0 
Trade loan repayments from customers
3.8 
3.7 
Trade loans advanced to customers
(2.4)
(2.6)
Other
0 
1.1 
Net cash used in investing activities
(258.2)
(144.6)
Cash flows from financing activities:
 
 
Exercise of stock options under equity compensation plans
19.7 
4.3 
Excess tax benefits from share-based compensation
3.3 
0.8 
Dividends paid
(57.8)
(52.1)
Dividends paid to noncontrolling interests holders
(1.7)
0 
Payments on long-term debt and capital lease obligations
(0.1)
0 
Proceeds from short-term borrowings
0 
6.8 
Payments on short-term borrowings
(10.8)
0 
Net (payments) proceeds from revolving credit facilities
1.5 
0.4 
Change in overdraft balances and other
0 
(10.3)
Net cash used in financing activities
(45.9)
(50.1)
Cash and cash equivalents:
 
 
Net increase (decrease) in cash and cash equivalents
(253.7)
(149.7)
Effect of foreign exchange rate changes on cash and cash equivalents
11.1 
13.8 
Balance at beginning of year
1,078.9 
1,217.6 
Balance at end of period
$ 836.3 
$ 1,081.7 
Basis of Presentation and Summary of Significant Accounting Policies
Basis of Presentation and Summary of Significant Accounting Policies
Basis of Presentation and Summary of Significant Accounting Policies
Unless otherwise noted in this report, any description of "we", "us" or "our" includes Molson Coors Brewing Company ("MCBC" or the "Company"), principally a holding company, and its subsidiaries: Molson Coors Canada ("MCC"), operating in Canada; MillerCoors LLC ("MillerCoors") which is accounted for by us under the equity method of accounting, operating in the United States ("U.S."); Molson Coors Brewing Company (UK) Limited ("MCBC-UK"), operating in the United Kingdom ("U.K.") and the Republic of Ireland; Molson Coors International ("MCI") operating in various other countries; and our other non-operating subsidiaries as further described in Note 1 of the Notes to the Audited Consolidated Financial Statements ("Notes") included in our Annual Report on Form 10-K for the year ended December 31, 2011 ("Annual Report").
Unless otherwise indicated, information in this report is presented in U.S. dollars ("USD" or "$").
The accompanying unaudited condensed consolidated interim financial statements reflect all adjustments which are necessary for a fair statement of the financial position, results of operations and cash flows for the periods presented in accordance with accounting principles generally accepted in the United States of America ("U.S. GAAP"). Such unaudited interim financial statements have been prepared in accordance with the instructions to Form 10-Q pursuant to the rules and regulations of the Securities and Exchange Commission ("SEC"). Certain information and footnote disclosures normally included in financial statements prepared in accordance with U.S. GAAP have been condensed or omitted pursuant to such rules and regulations.
These unaudited condensed consolidated interim financial statements should be read in conjunction with our Annual Report and have been prepared on a consistent basis with the accounting policies described in Note 1 of the Notes included in our Annual Report. Our accounting policies did not change in the first quarter of 2012. The results of operations for the 13 week period ended March 31, 2012, are not necessarily indicative of the results that may be achieved for the full fiscal year.
We follow a 52/53 week fiscal reporting calendar. The first fiscal quarter of 2012 and 2011 consisted of the 13 weeks ended on March 31, 2012, and March 26, 2011, respectively. Fiscal year 2012 consists of the 52 weeks ending on December 29, 2012, and fiscal year 2011 consisted of the 53 weeks ended December 31, 2011.
Unless otherwise indicated, the first quarter of 2012 refers to the 13 weeks ended March 31, 2012, and the first quarter of 2011 refers to the 13 weeks ended March 26, 2011.
MillerCoors follows a monthly reporting calendar. The first quarter of 2012 refers to the three months ended March 31, 2012, and the first quarter of 2011 refers to the three months ended March 31, 2011.    
Consistent with the disclosure in the Annual Report, these significant accounting policies include our treatment of the allowance for credit losses on our MCBC-UK trade loan portfolio. This allowance is maintained to provide for loan losses deemed to be probable related to specifically identified loans and for losses in the loan portfolio that have been incurred at the balance sheet date. We establish our allowance through a provision for loan losses charged against earnings and recorded in Marketing, general & administrative expenses. Loan balances that are written off are recorded against the allowance as a write-off. A rollforward of the allowance for the quarters ended March 31, 2012, and March 26, 2011, is as follows (in millions):
 
As of
 
March 31, 2012
March 26, 2011
Balance at beginning of the year
$
6.2

$
9.1

Addition charged to expense, net of recoveries
1.4

0.9

Write-offs
(0.6
)
(0.5
)
Foreign currency and other adjustments
—

0.3

Balance at end of first quarter
$
7.0

$
9.8

New Accounting Pronouncements
New Accounting Pronouncements
New Accounting Pronouncements
Adoption of New Accounting Pronouncements
Fair Value Measurement
In May 2011, the Financial Accounting Standards Board ("FASB") issued authoritative guidance related to fair value measurement and disclosure requirements. The new guidance results in a consistent definition of fair value and convergence between U.S. GAAP and International Financial Reporting Standards ("IFRS") on both how to measure fair value and on what disclosures to provide about fair value measurements. The guidance was effective for our quarter ended March 31, 2012. The adoption of this guidance did not impact our financial position or results from operations.
Presentation of Other Comprehensive Income
In June 2011, the FASB issued authoritative guidance related to the presentation of other comprehensive income, which was later amended in December 2011. Upon adoption of the guidance, as amended, an entity has the option to present the total of comprehensive income, the components of net income and the components of other comprehensive income either in a single continuous statement of comprehensive income or in two separate but consecutive statements. The guidance was effective for our quarter ended March 31, 2012. The adoption of this guidance was limited to a change in the presentation of our results, which we have elected to include as a separate Condensed Consolidated Statement of Comprehensive Income.
Testing Goodwill for Impairment
In September 2011, the FASB issued authoritative guidance related to goodwill impairment testing. The new guidance permits an entity to first assess qualitative factors to whether it is more likely than not that the fair value of a reporting unit is less than its carrying amount. If it is concluded that this is the case, it is necessary to perform the two-step goodwill impairment test. Otherwise, the two-step goodwill impairment test is not required. This guidance is effective for annual and interim goodwill impairment tests performed for our fiscal years beginning January 1, 2012. The impact of this guidance does not have an impact on our financial position or results from operations.
New Accounting Pronouncements Not Yet Adopted
Disclosure about Offsetting Assets and Liabilities
In December 2011, the FASB issued authoritative guidance enhancing the disclosure requirements related to offsetting asset and liability positions. The update creates new disclosure requirements about the nature of an entity's rights of offset and related arrangements associated with its financial instruments and derivative instruments. The new disclosures are designed to better facilitate comparison between financial statements prepared under U.S. GAAP and IFRS by requiring entities to provide financial statement users information about both gross and net exposures. The guidance is effective for annual reporting periods beginning on or after January 1, 2013, and interim periods thereafter. We do not anticipate that this guidance will have an impact on our financial position or results from operations. However, we are currently evaluating the impact of this guidance on our existing disclosures.
Segment Reporting
Segment Reporting
Segment Reporting
Our reporting segments are based on the key geographic regions in which we operate and consist of Canada, the United States ("U.S."), the United Kingdom ("U.K.") and Molson Coors International ("MCI"). Corporate is not a segment and includes interest and certain other general and administrative costs that are not allocated to any of the operating segments.
The following table sets forth net sales by segment:
 
Thirteen Weeks Ended
 
March 31, 2012
 
March 26, 2011
 
(In millions)
Canada
$
402.3

 
$
393.8

U.K. 
263.4

 
274.7

MCI
28.1

 
21.6

Corporate
0.3

 
0.3

Eliminations(1)
(2.7
)
 
—

         Consolidated
$
691.4

 
$
690.4


(1)
Represents intersegment sales from the U.K. segment to the MCI segment.
Across each of our segments, no single customer accounted for more than 10% of our sales. Net sales represent sales to third-party external customers. Inter-segment sales revenues, other than sales to MillerCoors, are insignificant and eliminated in consolidation.
The following table sets forth income (loss) from continuing operations before income taxes by segment:
 
Thirteen Weeks Ended
 
March 31, 2012
 
March 26, 2011
 
(In millions)
Canada
$
43.9

 
$
52.2

U.S. 
118.9

 
101.2

U.K. 
1.3

 
6.8

MCI
(8.6
)
 
(7.5
)
Corporate
(58.9
)
 
(54.2
)
         Consolidated
$
96.6

 
$
98.5


The following table sets forth total assets by segment:
 
As of
 
March 31, 2012
 
December 31, 2011
 
(In millions)
Canada
$
6,394.2

 
$
6,541.6

U.S. 
2,613.1

 
2,487.9

U.K. 
2,251.6

 
2,293.4

MCI
152.3

 
151.7

Corporate
1,024.7

 
948.9

Discontinued operations
0.3

 
0.3

         Consolidated
$
12,436.2

 
$
12,423.8

Investments
Investments
Investments
Our investments include both equity method and consolidated investments. Those entities identified as variable interest entities ("VIEs") have been evaluated to determine whether we are the primary beneficiary. The VIEs included under "Consolidated Investments" below are those for which we have concluded that we are the primary beneficiary and accordingly, we consolidate these entities. We have not provided any financial support to any of our VIEs during the quarter that we were not previously contractually obligated to provide. Authoritative guidance related to the consolidation of VIEs requires that we continually reassess whether we are the primary beneficiary of VIEs in which we have an interest. As such, the conclusion regarding the primary beneficiary status is subject to change and we continually evaluate circumstances that could require consolidation or deconsolidation.
Equity Investments
Investment in MillerCoors
Summarized financial information for MillerCoors is as follows (in millions):
Condensed Balance Sheets
 
As of
 
March 31, 2012
 
December 31, 2011
Current assets
$
997.4

 
$
810.9

Non-current assets
8,881.2

 
8,861.7

Total assets
$
9,878.6

 
$
9,672.6

Current liabilities
$
875.5

 
$
922.7

Non-current liabilities
1,421.9

 
1,471.3

Total liabilities
2,297.4

 
2,394.0

Noncontrolling interests
42.1

 
36.7

Owners' equity
7,539.1

 
7,241.9

Total liabilities and equity
$
9,878.6

 
$
9,672.6

Results of Operations
 
Three Months Ended
 
March 31, 2012
 
March 31, 2011
Net sales
$
1,759.8

 
$
1,699.1

Cost of goods sold
(1,070.0
)
 
(1,063.0
)
Gross profit
$
689.8

 
$
636.1

Operating income
$
279.0

 
$
238.7

Net income attributable to MillerCoors
$
275.3

 
$
234.7

The following represents MCBC's proportional share in net income attributable to MillerCoors reported under the equity method:
 
Thirteen Weeks Ended
 
March 31, 2012
 
March 26, 2011
 
(In millions, except percentages)
Net income attributable to MillerCoors
$
275.3

 
$
234.7

MCBC economic interest
42
%
 
42
%
MCBC proportionate share of MillerCoors net income
115.6

 
98.6

Amortization of the difference between MCBC contributed cost basis and proportional share of the underlying equity in net assets of MillerCoors(1)
0.4

 
2.4

Share-based compensation adjustment(2)
2.9

 
0.2

Equity income in MillerCoors
$
118.9

 
$
101.2

(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")) by approximately $588 million as of March 31, 2012. This difference, with the exception of goodwill and land, is being amortized as additional equity income over the remaining useful lives of the contributed long-lived amortizing assets. The current basis difference combined with the $35.0 million recorded in 2008 and 2009 related to differences resulting from accounting policy elections must be considered to reconcile MillerCoors equity to our investment in MillerCoors.
(2)
The net adjustment is to record all share-based compensation associated with pre-existing equity awards to be settled in Class B common stock held by former employees now employed by MillerCoors and to eliminate all share-based compensation impacts related to pre-existing SABMiller plc equity awards held by former Miller employees now employed by MillerCoors. As of the end of the second quarter of 2011, the share-based awards granted to former CBC employees now employed by MillerCoors became fully vested, as such; no further adjustments will be recorded related to these awards.
During the first quarter of 2012, we had $4.9 million of beer sales to MillerCoors and $2.3 million of beer purchases from MillerCoors. During the first quarter of 2011, we had $8.0 million of beer sales to MillerCoors and $2.5 million of beer purchases from MillerCoors. For the first quarter of 2012, we recorded $1.1 million of service agreement costs and other charges to MillerCoors and $0.2 million of service agreement costs from MillerCoors. For the first quarter of 2011, we recorded $1.4 million of service agreement and other charges to MillerCoors and $0.2 million of service agreement costs from MillerCoors.
As of March 31, 2012, and December 31, 2011, we had $7.0 million and $2.0 million of net receivables due from MillerCoors, respectively.
Consolidated Investments
The following summarizes the assets of our consolidated VIEs, including noncontrolling interests. None of our consolidated VIEs held debt as of March 31, 2012, or December 31, 2011.
 
As of
 
March 31, 2012
 
December 31, 2011
 
Total assets
 
(In millions)
Grolsch
$
22.9

 
$
20.4

Cobra U.K.
$
32.7

 
$
31.6

The following summarizes the results of operations of our consolidated VIEs (including noncontrolling interests).
 
Thirteen Weeks Ended
 
March 31, 2012
 
March 26, 2011
 
Revenues
 
Pre-tax income
 
Revenues
 
Pre-tax income
 
(In millions)
Grolsch(1)
$
5.3

 
$
0.8

 
$
5.2

 
$
0.7

Cobra U.K.
$
8.2

 
$
0.4

 
$
8.3

 
$
1.0

(1)
Substantially all such sales for Grolsch are made to us and as such, are eliminated in consolidation.
Share-Based Payments
Share-Based Payments
Share-Based Payments
During the first quarters of 2012 and 2011, we recognized share-based compensation expense related to the following Class B common stock awards to certain directors, officers and other eligible employees, pursuant to the Molson Coors Brewing Company Incentive Compensation Plan ("Incentive Compensation Plan"): restricted stock units ("RSU"), deferred stock units ("DSU"), performance units ("PU"), stock options and stock-only stock appreciation rights ("SOSAR").
The following table summarizes components of the share-based compensation expense:
 
Thirteen Weeks Ended
 
March 31, 2012
 
March 26, 2011
 
(In millions)
Stock options and SOSARs
 
 
 
Pre-tax compensation expense
$
1.8

 
$
2.8

Tax benefit
(0.5
)
 
(0.8
)
After-tax compensation expense
$
1.3

 
$
2.0

RSUs and DSUs
 
 
 
Pre-tax compensation expense
$
2.0

 
$
2.3

Tax benefit
(0.6
)
 
(0.5
)
After-tax compensation expense
$
1.4

 
$
1.8

PUs
 
 
 
Pre-tax compensation expense
$
1.0

 
$
3.0

Tax benefit
(0.4
)
 
(0.9
)
After-tax compensation expense
$
0.6

 
$
2.1

Total after-tax compensation expense
$
3.3

 
$
5.9


During the first quarter of 2012, we granted 0.2 million stock options, 0.3 million RSUs and 0.7 million PUs, all of which were outstanding, other than an insignificant amount of cancellations, as of March 31, 2012.
The mark-to-market share-based compensation expense before tax, related to our share-based awards granted to former CBC employees now employed by MillerCoors, recorded during the first quarter of 2011, was a benefit of $0.2 million. We did not record an adjustment in the first quarter of 2012 as these awards were fully vested as of the end of the second quarter of 2011. No further adjustments will be recorded related to these awards. These amounts are included in the table above.
As of March 31, 2012, there was $34.5 million of total unrecognized pre-tax compensation expense related to non-vested shares from share-based compensation arrangements granted under the Incentive Compensation Plan. This compensation expense is expected to be recognized over a weighted-average period of approximately 1.6 years.
The following table represents the summary of stock options and SOSARs outstanding as of March 31, 2012, and the activity during the first quarter of 2012:
 
Outstanding
options
 
Weighted-average
exercise price per
share
 
Weighted-average
remaining
contractual life
(years)
 
Aggregate
intrinsic value
 
(In millions, except per share amounts and years)
Outstanding as of December 31, 2011
7.1
 
$38.69
 
4.31
 
$
43.1

Granted
0.2
 
$42.80
 
 
 
 
Exercised
(0.7)
 
$29.80
 
 
 
 
Forfeited
—
 
$43.53
 
 
 
 
Outstanding as of March 31, 2012
6.6
 
$39.70
 
4.59
 
$
42.8

Exercisable at March 31, 2012
5.6
 
$39.09
 
3.96
 
$
41.0


The total intrinsic value of options exercised during the first quarter of 2012 and 2011 was $9.4 million and $1.5 million, respectively. During the first quarter of 2012, cash received from stock option exercises was $19.7 million and the total net tax benefit to be realized for the tax deductions from these option exercises was $3.3 million.
The following table represents non-vested RSUs, DSUs and PUs as of March 31, 2012, and the activity during the first quarter of 2012:
 
RSUs and DSUs
 
PUs
 
Units
 
Weighted-average
grant date fair value
per unit
 
Units
 
Weighted-average
grant date fair value
per unit
 
(In millions, except
per unit amounts)
 
(In millions, except
per unit amounts)
Non-vested as of December 31, 2011
0.6

 
$43.35
 
2.0

 
$11.67
Granted
0.3

 
$42.80
 
0.7

 
$14.35
Vested
—

 
$43.31
 
—

 
$—
Forfeited
—

 
$43.26
 
(0.1
)
 
$11.05
Non-vested as of March 31, 2012
0.9

 
$43.19
 
2.6

 
$11.03

The fair value of each option granted in the first quarter of 2012 and 2011, respectively, was determined on the date of grant using the Black-Scholes option-pricing model with the following weighted-average assumptions:
 
Thirteen Weeks Ended
 
March 31, 2012
 
March 26, 2011
Risk-free interest rate
1.56%
 
2.55%
Dividend yield
2.98%
 
2.52%
Volatility range
25.80%-27.56%
 
25.26%-28.11%
Weighted-average volatility
25.84%
 
26.37%
Expected term (years)
4.0-7.7
 
4.0-7.7
Weighted-average fair market value
$8.18
 
$9.66
The risk-free interest rates utilized for periods throughout the contractual life of the options are based on a zero-coupon U.S. Treasury security yield at the time of grant. Expected volatility is based on historical volatility of our stock. The expected term of options is estimated based upon observations of historical employee option exercise patterns and trends. The range on the expected term results from separate groups of employees who exhibit different historical exercise behavior.
As of March 31, 2012, there were 3.2 million shares of our Class B common stock available for the issuance of stock options, SOSARs, RSUs, DSUs, PUs and performance share units under the Incentive Compensation Plan.
Special items
Special Items
Special Items
We have incurred charges or recognized gains that we believe are not indicative of our normal, core operations. As such, we have separately classified these amounts as special operating items.
Summary of Special Items
The table below summarizes special items recorded by segment:
 
Thirteen Weeks Ended
 
March 31, 2012
 
March 26, 2011
 
(In millions)
Employee related charges
 
 
 
Restructuring
 
 
 
Canada
$
1.6

 
$
—

U.K.
1.8

 
0.3

Corporate
1.1

 
—

Special termination benefits
 
 
 
Canada(1)
0.5

 
2.8

Unusual or infrequent items
 
 
 
Canada - Flood insurance reimbursement(2)
—

 
(0.6
)
U.K. - Release of non-income-related tax reserve(3)
(3.5
)
 
(2.5
)
Total Special items, net
$
1.5

 
$
—

(1)
During the first quarters of 2012 and 2011, we recognized charges related to special termination benefits as eligible employees elected early retirement offered as a result of the Montreal Brewery and Distribution group's ratification of a Collective Bargaining Agreement with MCC in the first quarter of 2011.     
(2)
During 2011, we incurred expenses related to flood damages at our Toronto offices, which was partially offset by insurance proceeds.
(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 2012 and 2011 represent a release of a portion of this reserve as a result of a change in estimate.
The table below summarizes the activity in the restructuring accruals:
 
Restructuring charges
 
Canada
 
U.K.
 
Corporate
 
Total
 
(In millions)
Balance at December 31, 2011
$
0.1

 
$
1.8

 
$
—

 
$
1.9

Charges incurred
1.6

 
1.8

 
1.1

 
4.5

Payments made
—

 
(1.1
)
 
—

 
(1.1
)
Foreign currency and other adjustments
(0.1
)
 
(0.3
)
 
—

 
(0.4
)
Balance at March 31, 2012
$
1.6

 
$
2.2

 
$
1.1

 
$
4.9

Other Income and Expense
Other Income and Expense
Other Income and Expense
The table below summarizes other income and expense:
 
Thirteen Weeks Ended
 
March 31, 2012
 
March 26, 2011
 
(In millions)
Gain (loss) from Foster's total return swap and related financial instruments(1)
$
—

 
$
0.8

Gain (loss) from other foreign exchange and derivative activity
(1.7
)
 
(0.7
)
Environmental reserve
—

 
(0.2
)
Other, net
0.3

 
(0.6
)
Other income (expense), net
$
(1.4
)
 
$
(0.7
)
(1)
During January 2011, we settled our remaining Foster's Group Limited's ("Fosters") total return swap and related financial instruments.
Discontinued Operations
Discontinued Operations
Discontinued Operations
In 2006, we sold our entire equity interest in our Brazilian unit, Cervejarias Kaiser Brasil S.A. ("Kaiser") to FEMSA Cerveza S.A. de C.V. ("FEMSA"). The terms of the sale agreement require us to indemnify FEMSA for exposures related to certain tax, civil and labor contingencies arising prior to FEMSA's purchase of Kaiser. In the first quarters of 2012 and 2011, we recognized gains of $0.1 million and $0.3 million, respectively, from discontinued operations associated with foreign exchange gains and losses related to indemnities we provided to FEMSA with regard to contingent tax and other liabilities. See further discussion in Note 15, "Commitments and Contingencies".
As of March 31, 2012, and December 31, 2011, included in current assets of discontinued operations on the balance sheet are $0.3 million of deferred tax assets associated with these indemnity liabilities. Current liabilities of discontinued operations include current legal reserves of $4.9 million and $4.8 million as of March 31, 2012 and December 31, 2011, respectively.
Income Tax
Income Tax
Income Tax
Our effective tax rates for the first quarters of 2012 and 2011 were approximately 18% and 16%, respectively.
Our tax rate is volatile and may move up or down with changes in, among other things, the amount and source of income or loss, our ability to utilize foreign tax credits, changes in tax laws, and the movement of liabilities established for uncertain tax positions as statutes of limitations expire or positions are otherwise effectively settled. There are proposed or pending tax law changes in the U.S., U.K. and Canada that, if enacted, may impact our effective tax rate.
As of December 31, 2011, we had $70.7 million of uncertain tax benefits. Since December 31, 2011, uncertain tax benefits increased by $5.6 million. This addition is net of increases due to additional uncertain tax benefits and interest accrued for the current year and decreases primarily due to fluctuation in foreign exchange rates, certain tax positions closing or being effectively settled, and payments made to tax authorities with regard to uncertain tax benefits during the first quarter of 2012. This results in a total uncertain tax benefit of $76.3 million as of March 31, 2012.
We file income tax returns in most of the federal, state, and provincial jurisdictions in the U.S., U.K., and Canada. Tax years through 2006 are closed in the U.S., while exam years 2007 and 2008 have been effectively settled and only remain open pending finalization of an advanced pricing agreement. Tax years through fiscal year ended 2006 are closed or have been effectively settled through examination in Canada. Tax years through 2008 are closed or have been effectively settled through examination in the U.K.
Earnings per Share ("EPS")
Earnings per Share ("EPS")
Earnings Per Share ("EPS")
Basic net income per share was computed using the weighted average number of shares of common stock outstanding during the period. Diluted net income per share includes the additional dilutive effect of our potentially dilutive securities, which include stock options, SOSARs, RSUs, PUs, and DSUs. The dilutive effects of our potentially dilutive securities are calculated using the treasury stock method. Diluted income per share could also be impacted by our convertible debt and related warrants outstanding if they were in the money.
The following summarizes the effect of dilutive securities on diluted EPS:
 
Thirteen Weeks Ended
 
March 31, 2012
 
March 26, 2011
 
(In millions)
Amounts attributable to MCBC
 
 
 
Net income (loss) from continuing operations
$
79.4

 
$
82.6

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

 
0.3

Net income (loss) attributable to MCBC
$
79.5

 
$
82.9

Weighted average shares for basic EPS
180.3

 
186.9

Effect of dilutive securities:
 
 
 
Options and SOSARs
0.8

 
1.0

RSUs, PUs and DSUs
0.6

 
0.8

Weighted average shares for diluted EPS
181.7

 
188.7

Basic net income (loss) per share:
 
 
 
Continuing operations attributable to MCBC
$
0.44

 
$
0.44

Discontinued operations attributable to MCBC
—

 
—

Net income attributable to MCBC
$
0.44

 
$
0.44

Diluted net income (loss) per share:
 
 
 
Continuing operations attributable to MCBC
$
0.44

 
$
0.44

Discontinued operations attributable to MCBC
—

 
—

Net income attributable to MCBC
$
0.44

 
$
0.44

Dividends declared and paid per share
$
0.32

 
$
0.28


The following anti-dilutive securities were excluded from the computation of the effect of dilutive securities on diluted earnings per share:
 
Thirteen Weeks Ended
 
March 31, 2012
 
March 26, 2011
 
(In millions)
Stock options, SOSARs and RSUs(1)
0.8

 
0.4

Shares of Class B common stock issuable upon assumed conversion of the 2.5% Convertible Senior Notes(2)
10.9

 
10.5

Warrants to issue shares of Class B common stock(2)
10.9

 
10.5

 
22.6

 
21.4

(1)
Exercise prices exceed the average market price of the common shares or are anti-dilutive due to the impact of the unrecognized compensation cost on the calculation of assumed proceeds in the application of the treasury stock method.
(2)
We issued $575 million of senior convertible notes in June 2007. The impact of a net share settlement of the conversion amount at maturity will begin to dilute earnings per share if and when our stock price reaches $52.79. The impact of stock that could be issued to settle share obligations we could have under the warrants we issued simultaneously with the convertible notes issuance will begin to dilute earnings per share when our stock price reaches $67.57. The potential receipt of MCBC stock from counterparties under our purchased call options when and if our stock price is between $52.79 and $67.57 would be anti-dilutive and excluded from any calculations of earnings per share.
We have no outstanding equity share awards that contain non-forfeitable rights to dividends on unvested shares.
Goodwill and Intangible Assets
Goodwill and Intangible Assets
Goodwill and Intangible Assets
The following summarizes the change in goodwill for the first quarter of 2012 (in millions):
Balance at December 31, 2011
$
1,453.3

Business acquisitions
—

Foreign currency translation
37.8

Purchase price adjustment
0.4

Balance at March 31, 2012
$
1,491.5


Goodwill was attributed to our segments as follows:
 
As of
 
March 31, 2012
 
December 31, 2011
 
(In millions)
Canada
$
705.0

 
$
689.5

United Kingdom
768.1

 
746.1

MCI
18.4

 
17.7

Consolidated
$
1,491.5

 
$
1,453.3


The following table presents details of our intangible assets, other than goodwill, as of March 31, 2012:
 
Useful life
 
Gross
 
Accumulated
amortization
 
Net
 
(Years)
 
(In millions)
Intangible assets subject to amortization:
 
 
 
 
 
 
 
Brands
 3 - 40
 
$
326.0

 
$
(188.4
)
 
$
137.6

Distribution rights
 2 - 23
 
350.0

 
(243.2
)
 
106.8

Patents and technology and distribution channels
 3 - 10
 
35.0

 
(30.6
)
 
4.4

Land use rights and other
 2 - 42
 
6.5

 
(0.9
)
 
5.6

Intangible assets not subject to amortization:
 
 
 
 
 
 
 
Brands
 Indefinite
 
3,399.9

 
—

 
3,399.9

Distribution networks
 Indefinite
 
1,012.9

 
—

 
1,012.9

Other
 Indefinite
 
15.6

 
—

 
15.6

Total
 
 
$
5,145.9

 
$
(463.1
)
 
$
4,682.8


The following table presents details of our intangible assets, other than goodwill, as of December 31, 2011:
 
Useful life
 
Gross
 
Accumulated
amortization
 
Net
 
(Years)
 
(In millions)
Intangible assets subject to amortization:
 
 
 
 
 
 
 
Brands
3 - 40
 
$
316.9

 
$
(179.0
)
 
$
137.9

Distribution rights
2 - 23
 
342.0

 
(234.0
)
 
108.0

Patents and technology and distribution channels
3 - 10
 
34.9

 
(28.9
)
 
6.0

Land use rights and other
2 - 42
 
6.5

 
(0.8
)
 
5.7

Intangible assets not subject to amortization:
 
 
 
 
 
 
 
Brands
Indefinite
 
3,322.4

 
—

 
3,322.4

Distribution networks
Indefinite
 
990.5

 
—

 
990.5

Other
Indefinite
 
15.5

 
—

 
15.5

Total
 
 
$
5,028.7

 
$
(442.7
)
 
$
4,586.0


The changes in the gross carrying amounts of intangibles from December 31, 2011, to March 31, 2012, are due to the impact of foreign exchange rates, as a significant amount of intangibles are denominated in foreign currencies.
Based on foreign exchange rates as of March 31, 2012, the following is our estimated amortization expense related to intangible assets for the next five years:
 
Amount
 
(In millions)
2012 - remaining
$
26.3

2013
$
34.8

2014
$
34.7

2015
$
32.1

2016
$
32.1


Amortization expense of intangible assets was $9.3 million and $9.8 million for the first quarter of 2012 and 2011, respectively.
We are required to perform goodwill and indefinite-lived intangible asset impairment tests on at least an annual basis and more frequently in certain circumstances. We performed the required annual impairment testing as of June 26, 2011, and determined that there were no impairments of goodwill or other indefinite-lived intangible assets.

Through our annual impairment testing in 2011, we determined that the fair value of our China reporting unit, included in MCI, was not significantly in excess of its carrying value (of which $9.6 million is goodwill as of March 31, 2012). Since its inception, the performance of MC Si'hai (included in our China reporting unit) has not met our expectations due to delays in executing our business plans. As a result, the fair value of our China reporting unit only exceeded its carrying value by 4%. We continue to work at resolving the delays in executing our business plans, including ongoing discussions with the JV partner intended to overcome these difficulties. While there have not been events or changes in circumstances since our annual impairment testing in 2011 that would more likely than not reduce the China reporting unit fair value below its carrying value, we will continue to monitor the progress of these negotiations and discussions with our JV partner. There is no assurance that our efforts will be successful and, as a result, we may be required to record a goodwill impairment charge in the future related to the China reporting unit of up to $9.6 million.

Regarding definite-lived intangibles, we continuously monitor the performance of the underlying asset for potential triggering events suggesting an impairment review should be performed. No such triggering events were identified in the first quarter of 2012.

Debt
Debt
Debt
Our total long-term borrowings as of March 31, 2012, and December 31, 2011, were composed of the following:
 
As of
 
March 31, 2012
 
December 31, 2011
 
(In millions)
Senior notes:
 
 
 
$850 million 6.375% notes due 2012
$
44.6

 
$
44.6

Canadian Dollar ("CAD") 900 million 5.0% notes due 2015
901.2

 
881.2

$575 million 2.5% convertible notes due 2013(1)(2)
575.0

 
575.0

CAD 500 million 3.95% Series A notes due 2017
500.7

 
489.6

Credit facility(3)
—

 
—

Less: unamortized debt discounts and other(2)
(26.5
)
 
(30.8
)
Total long-term debt (including current portion)
1,995.0

 
1,959.6

Less: current portion of long-term debt
(44.6
)
 
(44.7
)
Total long-term debt
$
1,950.4

 
$
1,914.9

Total fair value(4)
$
2,126.1

 
$
2,133.6

(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. As of March 2012, our conversion price and ratio are $52.79 and 18.9441 shares, respectively. Currently, the convertible debt's if-converted value does not exceed the principal.
(2)
During the first quarters of 2012 and 2011, we incurred additional non-cash interest expense of $4.5 million and $4.3 million, respectively. We also incurred interest expense related to the 2.5% convertible coupon rate of $3.7 million during the first quarter of 2012, and $3.6 million during the first quarter of 2011. The combination of non-cash and cash interest resulted in an effective interest rate of 5.91% and 5.97% for the first quarters of 2012 and 2011, respectively. In relation to this issuance, paid in capital in the equity section of our balance sheet includes $103.9 million, ($64.2 million net of tax), representing the equity component of the convertible debt. Further, as of March 31, 2012, and December 31, 2011, $24.4 million and $28.9 million, respectively, of the unamortized debt discount and other balance relates to our $575 million convertible debt. We expect to record additional non-cash interest expense of approximately $14 million in 2012 and $11 million in 2013, thereby increasing the carrying value of the convertible debt to its $575 million face value at maturity in July 2013. The remaining $2.1 million and $1.9 million as of March 31, 2012, and December 31, 2011, respectively, relates to unamortized debt premiums, discounts, and other on the additional debt balances.
(3)
During the second quarter of 2011, we terminated our $750 million revolving multicurrency bank credit facility, which was scheduled to expire in August 2011. Additionally, in connection with this termination, we entered into an agreement for a 4-year revolving multicurrency credit facility of $400 million, which provides a $100 million sub-facility available for the issuance of letters of credit. We incurred $2.2 million of issuance costs and up-front fees related to this agreement, which are being amortized over the term of the facility. There were no outstanding borrowings on the $400 million credit facility as of March 31, 2012.
(4)
We utilize market approaches to estimate the fair value of our outstanding long-term borrowings by discounting anticipated future cash flows derived from the contractual terms of the obligations and observable market interest and foreign exchange rates. As of March 31, 2012, and December 31, 2011, the fair value of our outstanding long-term debt was $2,126.1 million and $2,133.6 million, respectively. Our convertible notes are valued based on quoted prices in active markets and would be classified as Level 1 in the fair value hierarchy. These notes had a fair value of $603.2 million and $608.5 million, as of March 31, 2012 and December 31, 2011, respectively. All other debt is valued based on significant other observable inputs and would be classified as Level 2 in the fair value hierarchy. These instruments had a fair value of $1,522.9 million and $1,525.1 million, as of March 31, 2012 and December 31, 2011, respectively.
Our short-term borrowings at March 31, 2012, and December 31, 2011, were $3.6 million and $2.2 million, respectively.
Under the terms of some of our debt facilities, we must comply with certain restrictions. These include restrictions on priority indebtedness (certain threshold percentages of secured consolidated net tangible assets), leverage thresholds, liens, and restrictions on certain types of sale lease-back transactions. As of March 31, 2012, we were in compliance with all of these restrictions.
On April 3, 2012, we entered into a sale and purchase agreement to purchase all of the issued share capital of StarBev Holdings S.à r.l. (including its subsidiaries, "StarBev"). In connection with the obligation to pay the purchase price, we have entered into new credit arrangements and issued new senior notes. See further discussion in Note 17, "Subsequent Events."
Derivative Instruments and Hedging Activities
Derivative Instruments and Hedging Activities
Derivative Instruments and Hedging Activities
Our risk management and derivative accounting policies are presented in Notes 1 and 18 of the Notes included in our Annual Report and did not significantly change during the first quarter of 2012.
Significant Derivative/Hedge Positions
Cross Currency Swaps
We historically designated the cross currency swap contracts as cash flow hedges of the variability of cash flows related to British Pound ("GBP") denominated principal and interest payments on intercompany notes of GBP 530 million. In September 2011, we cash settled approximately 25% of our GBP 530 million/$774 million and CAD 1.2 billion/GBP 530 million cross currency swaps. As a result of the settlement, we extinguished $98.7 million of the outstanding liability. Simultaneously with the settlement of the swaps, we paid down an equal portion of the outstanding principal of the intercompany notes in the amount of GBP 132 million.
In October 2011, we simultaneously extended both the terms of approximately half of the original intercompany notes and cross currency swaps, such that the new maturities are March 2014. The remaining approximate 25% was left unadjusted and continued to be due in May 2012. Following this extension, in November 2011, we dedesignated all of the remaining swaps as cash flow hedges and designated the aggregate swaps as a net investment hedge of our Canadian business.
In March 2012, we cash settled the remaining approximate 25% of our original cross currency swaps that was not refinanced in October 2011 as discussed above. As a result of the settlement, we extinguished $110.6 million of the outstanding liability, resulting in a net liability of $220.1 million classified as non-current at March 31, 2012.
Derivative Fair Value Measurements
We utilize market approaches to estimate the fair value of our derivative instruments by discounting anticipated future cash flows derived from the derivative's contractual terms and observable market interest, foreign exchange and commodity rates. The fair values of our derivatives also include credit risk adjustments to account for our counterparties' credit risk, as well as our own non-performance risk. As of March 31, 2012, and December 31, 2011, these adjustments resulted in deferred net gains in AOCI of $1.1 million and $1.1 million, respectively, as the fair value of our derivatives were in net liability positions at both period ends.
The table below summarizes our derivative assets and liabilities that were measured at fair value as of March 31, 2012, and December 31, 2011.
 
 
 
March 31, 2012
 
Total at
March 31, 2012
 
Quoted prices in
active markets
(Level 1)
 
Significant other
observable inputs
(Level 2)
 
Significant
unobservable
inputs (Level 3)
 
(In millions)
Cross currency swaps
$
(220.1
)
 
$
—

 
$
(220.1
)
 
$
—

Foreign currency forwards
(4.4
)
 
—

 
(4.4
)
 
—

Commodity swaps
(5.3
)
 
—

 
(5.3
)
 
—

Total
$
(229.8
)
 
$
—

 
$
(229.8
)
 
$
—

 
 
 
 
December 31, 2011
 
Total at
December 31, 2011
 
Quoted prices in
active markets
(Level 1)
 
Significant other
observable inputs
(Level 2)
 
Significant
unobservable
inputs (Level 3)
 
(In millions)
Cross currency swaps
$
(311.9
)
 
$
—

 
$
(311.9
)
 
$
—

Foreign currency forwards
2.2

 
—

 
2.2

 
—

Commodity swaps
(6.9
)
 
—

 
(6.9
)
 
—

Total
$
(316.6
)
 
$
—

 
$
(316.6
)
 
$
—


During 2011, we settled all of our option contracts that were classified as Level 3. As of March 31, 2012, we had no significant transfers between Level 1 and 2. New derivative contracts transacted during the first quarter of 2012 are all included in Level 2.
Results of Period Derivative Activity
The tables below include the year to date results of our derivative activity in the Condensed Consolidated Balance Sheets as of March 31, 2012, and December 31, 2011, and the Condensed Consolidated Statements of Operations for the quarters ended March 31, 2012, and March 26, 2011.
Fair Value of Derivative Instruments in the Condensed Consolidated Balance Sheet (in millions, except for certain commodity swaps with notional amounts measured in Metric Tonnes, as noted)
 
March 31, 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 current assets
 
$
—

 
Current derivative hedging instruments
 
$
—

 
 
 
 
Other assets
 
—

 
Long term derivative hedging instruments
 
(220.1
)
Foreign currency forwards
USD
440.2
 
Other current assets
 
1.5

 
Current derivative hedging instruments
 
(6.0
)
 
 
 
 
Other assets
 
2.1

 
Long term derivative hedging instruments
 
(2.0
)
Commodity swaps
Gigajoules
1.3

 
Other current assets
 
0.5

 
Current derivative hedging instruments
 
(1.4
)
 
 
 
 
Other assets
 
0.1

 
Long term derivative hedging instruments
 
(0.3
)
Total derivatives designated as hedging instruments
 
 
 
 
$
4.2

 
 
 
$
(229.8
)
Derivatives not designated as hedging instruments:
 
 
 
 
 
 
 
 
 
 
Aluminum swaps
Metric tonnes (actual)
7,750.0

 
Other current assets
 
$
—

 
Current derivative hedging instruments
 
$
(3.4
)
 
 
 
 
Other assets
 
—

 
Long term derivative hedging instruments
 
—

Diesel swaps
Metric tonnes (actual)
8,050.0

 
Other current assets
 
—

 
Current derivative hedging instruments
 
(0.6
)
 
 
 
 
Other assets
 
—

 
Long term derivative hedging instruments
 
(0.2
)
Total derivatives not designated as hedging instruments
 
 
 
 
$
—

 
 
 
$
(4.2
)

 
December 31, 2011
 
 
 
 
Asset derivatives
 
Liability derivatives
 
Notional amount
 
Balance sheet location
 
Fair value
 
Balance sheet location
 
Fair value
Derivatives designated as hedging instruments:
 
 
 
 
 
 
 
 
 
 
Cross currency swaps
CAD
901.3
 
Other current assets
 
$
—

 
Current derivative hedging instruments
 
$
(103.2
)
 
 
 
 
Other assets
 
—

 
Long term derivative hedging instruments
 
(208.7
)
Foreign currency forwards
USD
464.6
 
Other current assets
 
—

 
Current derivative hedging instruments
 
(1.3
)
 
 
 
 
Other assets
 
3.4

 
Long term derivative hedging instruments
 
—

Commodity swaps
Gigajoules
2.2
 
Other current assets
 
—

 
Current derivative hedging instruments
 
(1.8
)
 
 
 
 
Other assets
 
—

 
Long term derivative hedging instruments
 
(0.5
)
Total derivatives designated as hedging instruments
 
 
 
 
$
3.4

 
 
 
$
(315.5
)
Derivatives not designated as hedging instruments:
 
 
 
 
 
 
 
 
 
 
Aluminum swaps
Metric tonnes (actual)
8,825.0

 
Other current assets
 
$
—

 
Current derivative hedging instruments
 
$
(1.3
)
 
 

 
Other assets
 
—

 
Long term derivative hedging instruments
 
(3.3
)
Diesel swaps
Metric tonnes (actual)
9,668.0

 
Other current assets
 
0.1

 
Current derivative hedging instruments
 
—

Total derivatives not designated as hedging instruments
 
 
 
 
$
0.1

 
 
 
$
(4.6
)

MCBC allocates the current and non-current portion of each contract to the corresponding derivative account above.
The following summarizes the change in derivative related Accumulated other comprehensive income within the Condensed Consolidated Balance Sheet for the first quarter of 2012 (in millions):
Balance at December 31, 2011
$
1.7

Unrealized gain (loss) on derivative instruments
(27.2
)
Reclassification adjustment on derivative instruments
2.4

Tax benefit (expense)
8.8

Balance at March 31, 2012
$
(14.3
)

The Effect of Derivative Instruments on the Condensed Consolidated Statement of Operations (in millions)
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 in net investment hedge relationships
 
Amount of gain
(loss) recognized
in OCI on
derivative
(effective
portion)
 
Location of gain (loss)
reclassified from AOCI into
income (effective portion)
 
Amount of gain
(loss) recognized
from AOCI on
derivative
(effective portion)
 
Location of gain (loss)
recognized in income on
derivative (ineffective portion
and amount excluded from
effectiveness testing)
 
Amount of gain (loss)
recognized in income
on derivative
(ineffective portion and
amount excluded from
effectiveness testing)
Cross currency contracts
 
$
20.5

 
Other income (expense), net
 
$
—

 
Other income (expense), net
 
$
—

Total
 
$
20.5

 
 
 
$
—

 
 
 
$
—

Note: Amounts recognized in AOCI related to cash flow and net investment hedges are presented gross of taxes
During the period we recorded no significant ineffectiveness related to these cash flow and net investment hedges.
For the Thirteen Weeks Ended March 26, 2011
Derivatives in cash flow hedge relationships
 
Amount of gain
(loss) recognized
in OCI on
derivative
(effective
portion)
 
Location of gain (loss)
reclassified from AOCI into
income (effective portion)
 
Amount of gain
(loss) recognized
from AOCI on
derivative
(effective portion)
 
Location of gain (loss)
recognized in income on
derivative (ineffective portion
and amount excluded from
effectiveness testing)
 
Amount of gain (loss)
recognized in income
on derivative
(ineffective portion and
amount excluded from
effectiveness testing)
Cross currency swaps(1)
 
$
(3.1
)
 
Other income (expense), net
 
$
(23.5
)
 
Other income (expense), net
 
$
—

 
 
 

 
Interest expense, net
 
(3.4
)
 
Interest expense, net
 
—

Forward starting interest rate swaps
 
0.3

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

Foreign currency forwards
 
(8.7
)
 
Other income (expense), net
 
(1.7
)
 
Other income (expense), net
 
—

 
 
 

 
Cost of goods sold
 
(2.4
)
 
Cost of goods sold
 
—

Commodity swaps
 
3.9

 
Cost of goods sold
 
0.2

 
Cost of goods sold
 
—

Total
 
$
(7.6
)
 
 
 
$
(31.1
)
 
 
 
$
—

Note: Amounts recognized in AOCI are presented gross of taxes
(1)
The foreign exchange gain (loss) component of these cross currency swaps is offset by the corresponding gain (loss) on the hedged forecasted transactions in Other income (expense), net and Interest expense, net.
During the period we recorded no significant ineffectiveness related to these cash flow hedges.
We expect net losses of approximately $5.8 million (pre-tax) recorded in AOCI at March 31, 2012 will be reclassified into earnings within the next 12 months. The maximum length of time over which forecasted transactions are hedged is three years, and such transactions relate to foreign exchange, interest rate and commodity exposures.
Other Derivatives (in millions)
For the Thirteen Weeks Ended March 31, 2012
Derivatives Not In Hedging Relationship
 
Location of Gain (Loss) Recognized in
Income on Derivative
 
Amount of Gain (Loss) Recognized in
Income on Derivative
Commodity swaps
 
Cost of goods sold
 
$
0.1

 
 
 
 
$
0.1

For the Thirteen Weeks Ended March 26, 2011
Derivatives Not In Hedging Relationship
 
Location of Gain (Loss) Recognized in
Income on Derivative
 
Amount of Gain (Loss) Recognized in
Income on Derivative
Cash settled total return swaps
 
Other income (expense), net
 
$
(0.6
)
Option contracts
 
Other income (expense), net
 
1.5

Foreign currency forwards
 
Other income (expense), net
 
(0.1
)
 
 
 
 
$
0.8


Pension and Other Postretirement Benefits
Pension and Other Postretirement Benefits
Pension and Other Postretirement Benefits
We sponsor defined benefit retirement plans in Canada and the U.K. Additionally, we offer other postretirement benefits to the majority of our Canadian and U.S. employees. The net periodic pension costs under retirement plans and other postretirement benefits were as follows:
 
Thirteen Weeks Ended March 31, 2012
 
Canada plans
 
U.S. plans
 
U.K. plan
 
MCI
 
Consolidated
 
(In millions)
Defined Benefit Plans
 
 
 
 
 
 
 
 
 
Service cost
$
4.1

 
$
—

 
$
—

 
$
0.1

 
$
4.2

Interest cost
16.6

 
—

 
24.5

 
—

 
41.1

Expected return on plan assets
(15.3
)
 
—

 
(28.2
)
 
—

 
(43.5
)
Amortization of prior service cost
0.2

 
—

 
—

 
—

 
0.2

Amortization of net actuarial loss
5.4

 
—

 
4.4

 
—

 
9.8

Less expected participant contributions
(0.4
)
 
—

 
—

 
—

 
(0.4
)
Net periodic pension cost (benefit)
$
10.6

 
$
—

 
$
0.7

 
$
0.1

 
$
11.4

Other Postretirement Benefits
 
 
 
 
 
 
 
 
 
Service cost—benefits earned during the period
$
0.6

 
$
0.1

 
$
—

 
$
—

 
$
0.7

Interest cost on projected benefit obligation
2.0

 
—

 
—

 
—

 
2.0

Amortization of prior service cost (gain)
(0.9
)
 
—

 
—

 
—

 
(0.9
)
Amortization of net actuarial loss (gain)
(0.1
)
 
—

 
—

 
—

 
(0.1
)
Net periodic postretirement benefit cost
$
1.6

 
$
0.1

 
$
—

 
$
—

 
$
1.7

 
Thirteen Weeks Ended March 26, 2011
 
Canada plans
 
U.S. plans
 
U.K. plan
 
MCI
 
Consolidated
 
(In millions)
Defined Benefit Plans
 
 
 
 
 
 
 
 
 
Service cost
$
4.7

 
$
—

 
$
—

 
$
—

 
$
4.7

Interest cost
18.1

 
0.1

 
26.9

 
—

 
45.1

Expected return on plan assets
(18.6
)
 
—

 
(31.2
)
 
—

 
(49.8
)
Amortization of prior service cost
0.2

 
—

 
—

 
—

 
0.2

Amortization of net actuarial loss
2.3

 
—

 
2.7

 
—

 
5.0

Less expected participant contributions
(0.4
)
 
—

 
—

 
—

 
(0.4
)
Special termination of benefits
—

 
—

 
—

 
—

 
—

Net periodic pension cost (benefit)
$
6.3

 
$
0.1

 
$
(1.6
)
 
$
—

 
$
4.8

Other Postretirement Benefits
 
 
 
 
 
 
 
 
 
Service cost—benefits earned during the period
$
0.5

 
$
0.1

 
$
—

 
—

 
$
0.6

Interest cost on projected benefit obligation
1.9

 
—

 
—

 
—

 
1.9

Amortization of prior service cost (gain)
(0.9
)
 
—

 
—

 
—

 
(0.9
)
Amortization of net actuarial loss
(0.9
)
 
—

 
—

 
—

 
(0.9
)
Net periodic postretirement benefit cost
$
0.6

 
$
0.1

 
$
—

 
$
—

 
$
0.7


During the first quarter of 2012, employer contributions to the defined benefit plans for Canada and MCI were $7.5 million and $0.4 million, respectively. There were no contributions to the U.K. plan during the first quarter of 2012. Expected total fiscal year 2012 employer contributions to the Canada, U.K. and MCI defined benefit plans are approximately $60.0 million. MillerCoors, Brewers' Retail, Inc. ("BRI") and Brewers' Distributor Limited ("BDL") contributions to their defined benefit pension and other postretirement benefit plans are not included here, as they are not consolidated in our financial statements.
Commitments and Contingencies
Commitments and Contingencies
Commitments and Contingencies
Kaiser
As discussed in Note 8, "Discontinued Operations," we sold our entire equity interest in Kaiser during 2006 to FEMSA. The terms of the sale agreement require us to indemnify FEMSA for certain exposures related to tax, civil and labor contingencies arising prior to FEMSA's purchase of Kaiser. We provided an indemnity to FEMSA for losses Kaiser may incur with respect to tax claims associated with certain previously utilized purchased tax credits. We generally classify such purchased tax credits into two categories.
During 2010, we reached a settlement agreement with FEMSA for the entirety of our indemnity obligations corresponding to the principal, penalties, interest and attorney's fees owed by Kaiser for the first category of purchased credits. This favorable settlement involved a cash payment of $96.0 million, and eliminated $284.5 million of maximum potential tax claims, of which $131.2 million of indemnity liabilities were accrued on our balance sheet at December 26, 2009. The payment was made in the second quarter of 2010. The maximum potential claims amount remaining for the second category of purchased tax credits (which we believe present less risk than the first category) was $242.2 million as of March 31, 2012. As of March 31, 2012, our total estimate of the indemnity liability was $21.9 million, $8.8 million of which was classified as a current liability and $13.1 million of which was classified as non-current.
Our estimates consider a number of scenarios for the ultimate resolution of these issues, the probabilities of which are influenced not only by legal developments in Brazil but also by management's intentions with regard to various alternatives that could present themselves leading to the ultimate resolution of these issues. The liabilities are impacted by changes in estimates regarding amounts that could be paid, the timing of such payments, adjustments to the probabilities assigned to various scenarios and foreign currency exchange rates.
Additionally, we also provided FEMSA with indemnity related to all other tax, civil, and labor contingencies existing as of the date of sale. In this regard, however, FEMSA assumed their full share of all of these contingent liabilities that had been previously recorded and disclosed by us prior to the sale on January 13, 2006. However, we may have to provide indemnity to FEMSA if those contingencies settle at amounts greater than those amounts previously recorded or disclosed by us. We will be able to offset any indemnity exposures in these circumstances with amounts that settle favorably to amounts previously recorded. Our exposure related to these indemnity claims is capped at the amount of the sales price of the 68% equity interest of Kaiser, which was $68.0 million. As a result of these contract provisions, our estimates include not only probability-weighted potential cash outflows associated with indemnity provisions, but also probability-weighted cash inflows that could result from favorable settlements, which could occur through negotiation or settlement programs arising from the federal or any of the various state governments in Brazil. The recorded value of the tax, civil, and labor indemnity liability was $9.3 million as of March 31, 2012, which is classified as non-current.
Future settlement procedures and related negotiation activities associated with these contingencies are largely outside of our control. The sale agreement requires annual cash settlements relating to the tax, civil, and labor indemnities. Indemnity obligations related to purchased tax credits must be settled upon notification of FEMSA's settlement. Due to the uncertainty involved with the ultimate outcome and timing of these contingencies, significant adjustments to the carrying values of the indemnity obligations have been recorded to date, and additional future adjustments may be required. These liabilities are denominated in Brazilian Reais and are therefore subject to foreign exchange gains or losses, which are recognized in the discontinued operations section of the statement of operations.
The table below provides a summary of reserves associated with the Kaiser indemnity obligations from December 31, 2011, through March 31, 2012:
 
Indemnity Obligations
 
Purchased tax
credits
indemnity
reserve
 
Tax, civil and
labor
indemnity
reserve
 
Total
indemnity
reserves
 
(In millions)
Balance at December 31, 2011
$
21.5

 
$
9.1

 
$
30.6

Changes in estimates
—

 
—

 
—

Foreign exchange transaction impact
0.4

 
0.2

 
0.6

Balance at March 31, 2012
$
21.9

 
$
9.3

 
$
31.2


Guarantees
We guarantee indebtedness and other obligations to banks and other third parties for some of our equity method investments and consolidated subsidiaries. We guaranteed our respective share of the indebtedness of BRI related to its CAD 200 million debt which was settled at maturity on June 15, 2011, at which time we were released from our guarantee. The funding from this settlement was from a new short-term loan maturing in June 2012 for which we became a guarantor and a separate guarantee liability was recorded. Due to the structure of the new BRI debt agreement and related guarantees, our liability was reduced which resulted in a corresponding gain in Special items, net of $2.0 million in the second quarter of 2011. In September 2011, we made a $93.6 million capital contribution to BRI. BRI used these funds, along with the capital contributions received from its other shareholders, to repay its CAD 200 million debt. Accordingly, we were released from our guarantee of this debt resulting in the complete elimination of our guarantee liability.
Rocky Mountain Metal Container ("RMMC"), a Colorado limited liability company, is a joint venture with Ball Corporation in which MillerCoors holds and consolidates a 50% interest. RMMC produces cans and ends for MillerCoors. Prior to the formation of MillerCoors on July 1, 2008, we held the 50% interest in RMMC and consolidated the results and financial position of RMMC. As of December 25, 2010, we guaranteed $29.6 million of RMMC debt. As of December 31, 2011, MillerCoors had refinanced $16.0 million of this debt and, and as a result of this refinancing, we were released from our guarantee of this debt. We continue to guarantee $9.1 million of RMMC debt as of March 31, 2012.
Related to our previous ownership in the Montréal Canadiens we guarantee its obligations under a ground lease for the Bell Centre Arena (the "Ground Lease Guarantee"). Upon sale of our interest, the new owners agreed to indemnify us in connection with the liabilities we may incur under the Ground Lease Guarantee and provided us with a CAD 10 million letter of credit to guarantee such indemnity. This transaction did not materially affect our risk exposure related to the Ground Lease Guarantee, which continues to be recognized as a liability on our balance sheet.
Related to guarantees, Other liabilities in the accompanying Condensed Consolidated Balance Sheets include $6.2 million as of March 31, 2012, which is non-current; and $6.1 million as of December 31, 2011, which is non-current.
Litigation and Other Disputes
In 1999, Molson entered into an agreement for the distribution of Molson products in Brazil. In 2000, before commencing that business, Molson terminated the distribution agreement and paid the distributor $150,000 in settlement. The distributor then sued Molson to set aside the settlement and to seek additional compensation. The Appellate Court of the State of Rio de Janeiro ("Appellate Court") set aside the settlement agreement and determined that Molson was liable to the distributor, with the amount of damages to be determined through subsequent proceedings. An appeal of the liability decision is currently pending before the Brazilian Superior Court of Justice, which allowed Molson's appeal during the fourth quarter of fiscal year 2009 and agreed to hear the merits of Molson's appeal. With respect to damages, the case was remanded to a Rio de Janeiro trial court to determine the amount of damages. The trial court retained an expert who provided a report adopting the position of the distributor and recommended damages based on a business plan that was never implemented. Molson challenged the irregularity of the expert process, the impartiality of the expert, as well as the report's specific recommendation. The trial court denied Molson's challenges. Molson filed an appeal before the Appellate Court regarding these procedural irregularities, which was denied during the fourth quarter of fiscal year 2009. Following the trial court's procedural ruling during the third quarter of 2009, that court handed down a decision in the distributor's favor granting the full amount of the lost anticipated profits alleged by the distributor, approximately $42 million, plus attorney's fees and interest to accrue from the termination of the distribution agreement. Molson appealed the judgment to the Appellate Court. During the fourth quarter of 2009, the Appellate Court directed the court-retained expert to explain the basis for his damages calculation. During the first quarter of 2010, the Appellate Court granted Molson's appeal and vacated the $42 million judgment. The Appellate Court remanded the proceeding to the trial court and ordered that court to select a different expert. The Appellate Court furthermore directed the trial court to use specific criteria in setting damages, the effect of which should be to substantially reduce the award. Molson sought clarification as to the precise criteria to be used. In late April 2010, the Appellate Court denied Molson's motion for clarification, but limited the accrual of interest in this matter. In mid October 2010, the Appellate Court denied the distributor's motion to set aside the vacation of the $42 million judgment. In July 2011, the trial court selected a new expert who is beginning to formulate a new calculation of damages. We have accrued $4.9 million, which represents our probable and estimable loss as of March 31, 2012. Subsequent to the end of the first quarter of 2012, we entered into settlement negotiations with the distributor and have agreed in principle to settle this litigation for approximately $7.1 million, including legal fees. We anticipate finalizing this settlement during the second quarter of 2012.
On February 9, 2012, the Oglala Sioux Tribe ("OST") of South Dakota filed a lawsuit in federal district court in Nebraska against four beer retailers in Whiteclay, Nebraska, and the distributors and brewers, including MillerCoors (and its parents, which include us), who make and distribute the beer sold at those retailers. Whiteclay, Nebraska, is across the state border from the Pine Ridge Indian Reservation ("PRIR") in South Dakota, where the OST resides. The sale and consumption of beer is prohibited in the PRIR. The complaint was amended on February 17, 2012. The amended complaint alleges that the manufacturing and distributor defendants acted in concert with the retailers to promote and sell beer that they knew would be transported to and eventually resold and consumed in the PRIR, and that these sales of beer were illegal under federal law and the laws of Nebraska and the OST. The amended complaint also seeks injunctive relief limiting the amount of beer sold by the retailers in Whiteclay. During the first quarter of 2012, MCBC was voluntarily dismissed from the lawsuit by the OST without prejudice to the rights of the OST, if any, to bring future claims against MCBC. MillerCoors remains a party to the lawsuit.
We are involved in other disputes and legal actions arising in the ordinary course of our business. While it is not feasible to predict or determine the outcome of these proceedings, in our opinion, based on a review with legal counsel, none of these disputes and legal actions is expected to have a material impact on our consolidated financial position, results of operations or cash flows. However, litigation is subject to inherent uncertainties and an adverse result in these or other matters may arise from time to time that may harm our business.
Environmental
When we determine it is probable that a liability for environmental matters or other legal actions exists and the amount of the loss is reasonably estimable, an estimate of the future costs are recorded as a liability in the financial statements. Costs that extend the life, increase the capacity or improve the safety or efficiency of Company-owned assets or are incurred to mitigate or prevent future environmental contamination may be capitalized. Other environmental costs are expensed when incurred.
We have been notified that we are or may be a potentially responsible party ("PRP") under the Comprehensive Environmental Response, Compensation and Liability Act or similar state laws for the cleanup of sites where hazardous substances have allegedly been released into the environment. We cannot predict with certainty the total costs of cleanup, our share of the total cost, the extent to which contributions will be available from other parties, the amount of time necessary to complete the cleanups or insurance coverage.
Canada
Our Canada brewing operations are subject to provincial environmental regulations and local permit requirements. Our Montréal and Toronto breweries have water treatment facilities to pre-treat waste water before it goes to the respective local governmental facility for final treatment. We have environmental programs in Canada including organization, monitoring and verification, regulatory compliance, reporting, education and training, and corrective action.
We sold a chemical specialties business in 1996. The Company is still responsible for certain aspects of environmental remediation, undertaken or planned, at those chemical specialties business locations. We have established provisions for the costs of these remediation programs.
United States
Lowry
We are one of a number of entities named by the Environmental Protection Agency ("EPA") as a PRP at the Lowry Superfund site. This landfill is owned by the City and County of Denver ("Denver") and is managed by Waste Management of Colorado, Inc. ("Waste Management"). In 1990, we recorded a pretax charge of $30 million, a portion of which was put into a trust in 1993 as part of a settlement with Denver and Waste Management regarding the then-outstanding litigation. Our settlement was based on an assumed remediation cost of $120 million (in 1992 adjusted dollars). We are obligated to pay a portion of future costs, if any, in excess of that amount.
Waste Management provides us with updated annual cost estimates through 2032. We review these cost estimates in the assessment of our accrual related to this issue. We use certain assumptions that differ from Waste Management's estimates to assess our expected liability. Our expected liability (based on the $120 million threshold being met) is based on our best estimates available.
The assumptions used are as follows:
•
trust management costs are included in projections with regard to the $120 million threshold, but are expensed only as incurred;
•
income taxes, which we believe are not an included cost, are excluded from projections with regard to the $120 million threshold;
•
a 2.5% inflation rate for future costs; and
•
certain operations and maintenance costs were discounted using a 1.69% risk-free rate of return.
Based on these assumptions, the present value and gross amount of the costs at March 31, 2012, are approximately $4.3 million and $7.8 million, respectively. Accordingly, we believe that the existing liability of $6.2 million is adequate as of March 31, 2012. We did not assume any future recoveries from insurance companies in the estimate of our liability, and none are expected.
Considering the estimates extend through the year 2032 and the related uncertainties at the site, including what additional remedial actions may be required by the EPA, new technologies and what costs are included in the determination of when the $120 million is reached, the estimate of our liability may change as further facts develop. We cannot predict the amount of any such change, but additional accruals in the future are possible.
Other
In October 2006, we were notified by the EPA that we are a PRP, along with approximately 60 other parties, at the Cooper Drum site in southern California. Certain former non-beer business operations, which we discontinued and sold in the mid-1990s, were involved at this site. We responded to the EPA with information regarding our past involvement with the site. We have accrued $0.2 million, which represents our estimable loss at this time. Potential losses associated with the Cooper Drum site could increase as remediation planning progresses.
During the third quarter of 2008, we were notified by the EPA that we are a PRP, along with others, at the East Rutherford and Berry's Creek sites in New Jersey. Certain former non-beer business operations, which we discontinued and sold in the mid-1990s, were involved at this site. We have accrued $3.8 million, which represents our estimable loss at this time. Potential losses associated with the Berry's Creek site could increase as remediation planning progresses.
While we cannot predict the eventual aggregate cost for environmental and related matters in which we are currently involved, we believe that any payments, if required, for these matters would be made over a period of time in amounts that would not be material in any one year to our results from operations, cash flows or our financial or competitive position. We believe adequate reserves have been provided for losses that are probable and estimable.
We are aware of groundwater contamination at some of our properties in Colorado resulting from historical, ongoing, or nearby activities. There may also be other contamination of which we are currently unaware.
United Kingdom
We are subject to the requirements of government and local environmental and occupational health and safety laws and regulations. Compliance with these laws and regulations did not materially affect our first quarter 2012 capital expenditures, results from operations or our financial or competitive position, and we do not anticipate that they will do so during the remainder of the year.
Supplemental Guarantor Information
Supplemental Guarantor Information
Supplemental Guarantor Information
        For purposes of this Note 16, including the tables, "Parent Guarantor and 2007 Issuer" shall mean MCBC and "2002 Issuer" shall mean CBC.
SEC Registered Securities
On May 7, 2002, CBC completed a public offering of $850 million principal amount of 6.375% senior notes due 2012. As of March 31, 2012, $44.6 million remain outstanding and are guaranteed on a senior and unsecured basis by MCBC and certain U.S. and Canadian subsidiaries of MCBC, including Molson Canada 2005 (collectively, the "Subsidiary Guarantors"). The guarantees are full and unconditional and joint and several.
On June 15, 2007, MCBC issued $575 million of 2.5% convertible senior notes due July 30, 2013, in a registered public offering (see Note 12, "Debt"). The convertible notes are guaranteed on a senior unsecured basis by CBC and the Subsidiary Guarantors. The guarantees are full and unconditional and joint and several.
On May 3, 2012, MCBC completed a public offering of $1.9 billion of senior notes consisting of $300 million 2.0% senior notes due 2017, $500 million 3.5% senior notes due 2022, and $1.1 billion 5.0% senior notes due 2042. These senior notes are guaranteed on a senior unsecured basis by CBC and the Subsidiary Guarantors - as well as the addition of three new guarantors, specifically, Molson Coors Brewing Company (UK) Limited (our primary U.K. operating entity), Golden Acquisition, and Molson Coors Holdings Limited. The guarantees are full and unconditional and joint and several. As noted below, under "Presentation - As recast for debt offering", the addition of these entities as guarantors of this debt also required the simultaneous addition of these entities on our existing senior unsecured notes. This will result in a change to the presentation of our guarantor financial statements to include the U.K. operating results as a guarantor on all future filings as well as on the historical presentation. See Note 17, "Subsequent Events" for further discussion of the senior notes issuance.
Other Debt
On September 22, 2005, MC Capital Finance ULC ("MC Capital Finance") issued $1.1 billion of senior notes consisting of $300 million 4.85% U.S. publicly registered notes due 2010 and CAD 900 million 5.0% privately placed notes maturing on September 22, 2015. These CAD 900 million senior notes were subsequently exchanged for substantially identical CAD 900 million senior notes which were quantified by way of a prospectus in Canada. In connection with an internal corporate reorganization, Molson Coors International LP ("MCI LP") was subsequently added as a co-issuer of the CAD 900 million senior notes in 2007. During the third quarter of 2010, the $300 million 4.85% notes were repaid in full. Following the repayment of our $300 million senior notes in 2010 we were no longer required to present the “2005 and 2010 Issuer” column (historically consisting of MC Capital Finance and MCI LP) and as such have removed that column. Additionally, the continuous disclosure requirements applicable to MC Capital Finance in Canada are satisfied through the consolidating financial information in respect of MC Capital Finance, MCI LP and other subsidiary guarantors of the CAD 900 million senior notes as currently presented. Therefore, the results of MC Capital Finance and MCI LP are now included in the Subsidiary Guarantors column.
On October 6, 2010, MCI LP completed a private placement in Canada of CAD 500 million 3.95% fixed rate Series A Notes due 2017. These notes are not publicly registered in the U.S. or Canada.
Both the 2005 CAD 900 million senior notes and the 2010 CAD 500 million are guaranteed on a senior and unsecured basis by MCBC, CBC, and the Subsidiary Guarantors. The guarantees are full and unconditional and joint and several. Funds necessary to meet the debt service obligations of MCI LP and MC Capital Finance are provided in large part by distributions or advances from MCBC's other subsidiaries. Under certain circumstances, contractual and legal restrictions, as well as our financial condition and operating requirements, could limit the ability of MCI LP and MC Capital Finance to obtain cash for the purpose of meeting its debt service obligation, including the payment of principal and interest on the notes.
There were no outstanding borrowings on our 4-year revolving $400 million credit facility as of March 31, 2012, and December 31, 2011, which was issued in the second quarter of 2011.
On April 3, 2012, we entered into a $300 million term loan agreement and a $300 million revolving credit agreement that was subsequently amended to increase the borrowing limit to $550 million. These loan facilities are not publicly registered in the U.S. or Canada. See Note 17, "Subsequent Events" for further discussion related to these agreements.
Presentation
On December 25, 2010, CBC transferred its equity method investment in MillerCoors to MC Holding Company LLC, a newly created wholly-owned subsidiary of MCBC and a guarantor of the notes as well as the 2010 senior notes. As a result of the transfer, the investment in MillerCoors is presented in the column "Subsidiary Guarantors" at December 31, 2011, and December 25, 2010, and all results of operations and cash flows related to the investment in MillerCoors subsequent to December 25, 2010, are presented in that column. The transfer of the investment between the 2002 Issuer and Subsidiary Guarantor categories does not negatively affect the holders of the notes or the holders of the 2010 senior notes as both the prior holder of the MillerCoors investment, CBC, and the current holder, MC Holding Company LLC, are joint and severally liable under the notes and the 2010 senior notes by virtue of their status as issuer or guarantor.
During the third quarter of 2011, we identified necessary changes to our historical treatment of intercompany distributions within the guarantor financial statements. These distributions represented a return of capital and therefore should not have been reflected in our consolidating statements of operations. As such, our historical and current consolidating financial statements presented within this note reflect the revised treatment to allow for comparative information. This revision resulted in a change to Other income (expense), net for the quarter ended March 26, 2011, from Other income of $102.8 million, as previously reported, to Other expense of $1.2 million as adjusted, for the 2002 Issuer, with the offsetting adjustment to the "eliminations" column. Additionally, during the first quarter of 2012, we identified necessary changes to our historical guarantor financial statements related to intercompany transactions. The impact of these changes as presented within this note is limited to the consolidating balance sheet as of December 31, 2011.
Presentation - As Recast for Debt Offering
In connection with the Company's offering of debt securities registered on the Form S-3 Registration Statement filed with the SEC on April 26, 2012, we have recast our presentation of the guarantor financial information to reflect the inclusion of Molson Coors Brewing Company (UK) Limited, our primary U.K. operating entity, Golden Acquisition and Molson Coors Holdings Limited as additional subsidiary guarantors of our obligations as a result of the offering. The offering includes $1.9 billion of senior notes and related guarantees registered with the SEC. The proceeds will be used to pay a portion of the purchase price of StarBev pursuant to the sale and purchase agreement, which we entered into on April 3, 2012 (see Note 17, "Subsequent Events"). The terms of our existing senior notes are such that the addition of guarantors of any future senior indebtedness, such as this offering, causes these new legal entity guarantors to also contemporaneously guarantee those outstanding senior obligations. Recast guarantor financial information reflecting the additional subsidiary guarantors follows the currently reported guarantor financial information below.
The following information sets forth the Condensed Consolidating Statements of Operations for the 13 weeks ended March 31, 2012, and March 26, 2011, Condensed Consolidating Balance Sheets as of March 31, 2012, and December 31, 2011, and Condensed Consolidating Statements of Cash Flows for the 13 weeks ended March 31, 2012, and March 26, 2011. Investments in subsidiaries are accounted for on the equity method; accordingly, entries necessary to consolidate the Parent Guarantor, each of the issuers and all of our guarantor and non-guarantor subsidiaries are reflected in the eliminations column. In the opinion of management, separate complete financial statements of MCBC, CBC and the Subsidiary Guarantors would not provide additional material information that would be useful in assessing their financial composition.
MOLSON COORS BREWING COMPANY AND SUBSIDIARIES
CONDENSED CONSOLIDATING STATEMENT OF OPERATIONS
FOR THE THIRTEEN WEEKS ENDED MARCH 31, 2012
(IN MILLIONS)
(UNAUDITED)

 
Parent
Guarantor
and 2007
Issuer
 
2002
Issuer
 
Subsidiary
Guarantors
 
Subsidiary
Non
Guarantors
 
Eliminations
 
Consolidated
Sales
$
5.5

 
$
43.3

 
$
519.2

 
$
489.2

 
$
(49.1
)
 
$
1,008.1

Excise taxes
—

 
—

 
(123.2
)
 
(193.5
)
 
—

 
(316.7
)
Net sales
5.5

 
43.3

 
396.0

 
295.7

 
(49.1
)
 
691.4

Cost of goods sold
—

 
(7.5
)
 
(240.9
)
 
(231.8
)
 
41.4

 
(438.8
)
Gross profit
5.5

 
35.8

 
155.1

 
63.9

 
(7.7
)
 
252.6

Marketing, general and administrative expenses
(34.5
)
 
(9.1
)
 
(112.2
)
 
(100.1
)
 
7.7

 
(248.2
)
Special items, net
(1.1
)
 
—

 
(2.1
)
 
1.7

 
—

 
(1.5
)
Equity income (loss) in subsidiaries
85.0

 
23.9

 
(139.1
)
 
52.6

 
(22.4
)
 
—

Equity income in MillerCoors
—

 
—

 
118.9

 
—

 
—

 
118.9

Operating income (loss)
54.9

 
50.6

 
20.6

 
18.1

 
(22.4
)
 
121.8

Interest income (expense), net
—

 
(9.2
)
 
97.5

 
(112.1
)
 
—

 
(23.8
)
Other income (expense), net
12.0

 
(12.2
)
 
—

 
(1.2
)
 
—

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

 
29.2

 
118.1

 
(95.2
)
 
(22.4
)
 
96.6

Income tax benefit (expense)
12.6

 
(31.9
)
 
(1.5
)
 
3.5

 
—

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

 
(2.7
)
 
116.6

 
(91.7
)
 
(22.4
)
 
79.3

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

 
—

 
—

 
0.1

 
—

 
0.1

Net income (loss) including noncontrolling interests
79.5

 
(2.7
)
 
116.6

 
(91.6
)
 
(22.4
)
 
79.4

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

 
—

 
—

 
0.1

 
—

 
0.1

Net income (loss) attributable to MCBC
$
79.5

 
$
(2.7
)
 
$
116.6

 
$
(91.5
)
 
$
(22.4
)
 
$
79.5

Comprehensive income attributable to MCBC
$
56.1

 
$
(16.2
)
 
$
316.8

 
$
(143.7
)
 
$
(22.4
)
 
$
190.6


MOLSON COORS BREWING COMPANY AND SUBSIDIARIES
CONDENSED CONSOLIDATING STATEMENT OF OPERATIONS
FOR THE THIRTEEN WEEKS ENDED MARCH 26, 2011
(IN MILLIONS)
(UNAUDITED)

 
Parent
Guarantor
and 2007
Issuer
 
2002
Issuer
 
Subsidiary
Guarantors
 
Subsidiary
Non
Guarantors
 
Eliminations
 
Consolidated
Sales
$
5.8

 
$
43.2

 
$
511.8

 
$
484.3

 
$
(47.8
)
 
$
997.3

Excise taxes
—

 
—

 
(123.6
)
 
(183.3
)
 
—

 
(306.9
)
Net sales
5.8

 
43.2

 
388.2

 
301.0

 
(47.8
)
 
690.4

Cost of goods sold
—

 
(10.9
)
 
(224.5
)
 
(233.6
)
 
41.8

 
(427.2
)
Gross profit
5.8

 
32.3

 
163.7

 
67.4

 
(6.0
)
 
263.2

Marketing, general and administrative expenses
(32.7
)
 
(7.6
)
 
(110.6
)
 
(93.5
)
 
6.0

 
(238.4
)
Special items, net
—

 
—

 
(2.1
)
 
2.1

 
—

 
—

Equity income (loss) in subsidiaries
185.9

 
1.6

 
(148.8
)
 
54.5

 
(93.2
)
 
—

Equity income in MillerCoors
—

 
—

 
101.2

 
—

 
—

 
101.2

Operating income (loss)
159.0

 
26.3

 
3.4

 
30.5

 
(93.2
)
 
126.0

Interest income (expense), net
(8.4
)
 
11.9

 
80.3

 
(110.6
)
 
—

 
(26.8
)
Other income (expense), net
1.4

 
(1.2
)
 
(0.1
)
 
(0.8
)
 
—

 
(0.7
)
Income (loss) from continuing operations before income taxes
152.0

 
37.0

 
83.6

 
(80.9
)
 
(93.2
)
 
98.5

Income tax benefit (expense)
(69.1
)
 
47.8

 
7.6

 
(2.4
)
 
—

 
(16.1
)
Net income (loss) from continuing operations
82.9

 
84.8

 
91.2

 
(83.3
)
 
(93.2
)
 
82.4

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

 
—

 
—

 
0.3

 
—

 
0.3

Net income (loss) including noncontrolling interests
82.9

 
84.8

 
91.2

 
(83.0
)
 
(93.2
)
 
82.7

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

 
—

 
—

 
0.2

 
—

 
0.2

Net income (loss) attributable to MCBC
$
82.9

 
$
84.8

 
$
91.2

 
$
(82.8
)
 
$
(93.2
)
 
$
82.9

Comprehensive income attributable to MCBC
$
113.1

 
$
81.6

 
$
286.5

 
$
(134.6
)
 
$
(93.2
)
 
$
253.4


MOLSON COORS BREWING COMPANY AND SUBSIDIARIES
CONDENSED CONSOLIDATING BALANCE SHEETS
AS OF MARCH 31, 2012
(IN MILLIONS)
(UNAUDITED)
 
Parent
Guarantor
and 2007
Issuer
 
2002
Issuer
 
Subsidiary
Guarantors
 
Subsidiary
Non
Guarantors
 
Eliminations
 
Consolidated
Assets
 
 
 
 
 
 
 
 
 
 
 
Current assets:
 
 
 
 
 
 
 
 
 
 
 
Cash and cash equivalents
$
680.6

 
$
—

 
$
64.3

 
$
91.4

 
$
—

 
$
836.3

Accounts receivable, net
1.9

 
6.6

 
172.6

 
331.3

 
—

 
512.4

Other receivables, net
65.4

 
—

 
23.5

 
45.4

 
(0.6
)
 
133.7

Total inventories, net
—

 
—

 
101.7

 
154.7

 
—

 
256.4

Other assets, net
10.8

 
4.0

 
62.4

 
31.5

 
—

 
108.7

Deferred tax assets
—

 
11.4

 
—

 
21.3

 
(6.3
)
 
26.4

Discontinued operations
—

 
—

 
—

 
0.3

 
—

 
0.3

Intercompany accounts receivable
—

 
166.4

 
1,017.2

 
857.9

 
(2,041.5
)
 
—

Total current assets
758.7

 
188.4

 
1,441.7

 
1,533.8

 
(2,048.4
)
 
1,874.2

Properties, net
26.4

 
7.0

 
877.3

 
544.6

 
—

 
1,455.3

Goodwill
—

 
11.4

 
312.3

 
1,167.8

 
—

 
1,491.5

Other intangibles, net
—

 
37.2

 
4,237.5

 
408.1

 
—

 
4,682.8

Investment in MillerCoors
—

 
—

 
2,613.1

 
—

 
—

 
2,613.1

Net investment in and advances to subsidiaries
8,163.6

 
5,586.9

 
377.3

 
4,927.4

 
(19,055.2
)
 
—

Deferred tax assets
28.8

 
103.7

 
11.0

 
—

 
(15.0
)
 
128.5

Other assets, net
20.9

 
13.8

 
94.2

 
61.9

 
—

 
190.8

Total assets
$
8,998.4

 
$
5,948.4

 
$
9,964.4

 
$
8,643.6

 
$
(21,118.6
)
 
$
12,436.2

Liabilities and equity
 
 
 
 
 
 
 
 
 
 
 
Current liabilities:
 
 
 
 
 
 
 
 
 
 
 
Accounts payable
$
8.1

 
$
2.3

 
$
73.2

 
$
122.6

 
$
(0.6
)
 
$
205.6

Accrued expenses and other liabilities, net
35.7

 
5.5

 
237.3

 
333.5

 
—

 
612.0

Derivative hedging instruments
—

 
2.2

 
8.0

 
1.2

 
—

 
11.4

Deferred tax liability
6.5

 
—

 
168.9

 
—

 
(6.3
)
 
169.1

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

 
44.6

 
—

 
3.6

 
—

 
48.2

Discontinued operations
—

 
—

 
—

 
13.7

 
—

 
13.7

Intercompany accounts payable
584.5

 
9.0

 
868.7

 
579.3

 
(2,041.5
)
 
—

Total current liabilities
634.8

 
63.6

 
1,356.1

 
1,053.9

 
(2,048.4
)
 
1,060.0

Long-term debt
550.6

 
—

 
1,399.8

 
—

 
—

 
1,950.4

Derivative hedging instruments
—

 
220.9

 
1.4

 
0.3

 
—

 
222.6

Pension and post-retirement benefits
—

 
2.8

 
399.7

 
305.6

 
—

 
708.1

Deferred tax liability
—

 
—

 
—

 
489.9

 
(15.0
)
 
474.9

Other liabilities, net
5.7

 
14.7

 
32.8

 
96.7

 
—

 
149.9

Discontinued operations
—

 
—

 
—

 
22.4

 
—

 
22.4

Intercompany notes payable
—

 
212.3

 
—

 
4,947.2

 
(5,159.5
)
 
—

Total liabilities
1,191.1

 
514.3

 
3,189.8

 
6,916.0

 
(7,222.9
)
 
4,588.3

MCBC stockholders' equity
8,021.5

 
5,476.3

 
11,677.7

 
1,687.0

 
(19,055.2
)
 
7,807.3

Intercompany notes receivable
(214.2
)
 
(42.2
)
 
(4,903.1
)
 
—

 
5,159.5

 
—

Total stockholders' equity
7,807.3

 
5,434.1

 
6,774.6

 
1,687.0

 
(13,895.7
)
 
7,807.3

Noncontrolling interests
—

 
—

 
—

 
40.6

 
—

 
40.6

Total equity
7,807.3

 
5,434.1

 
6,774.6

 
1,727.6

 
(13,895.7
)
 
7,847.9

Total liabilities and equity
$
8,998.4

 
$
5,948.4

 
$
9,964.4

 
$
8,643.6

 
$
(21,118.6
)
 
$
12,436.2

MOLSON COORS BREWING COMPANY AND SUBSIDIARIES
CONDENSED CONSOLIDATING BALANCE SHEETS
AS OF DECEMBER 31, 2011
(IN MILLIONS)
(UNAUDITED)
 
Parent
Guarantor
and 2007
Issuer
 
2002
Issuer
 
Subsidiary
Guarantors
 
Subsidiary
Non
Guarantors
 
Eliminations
 
Consolidated
Assets
 
 
 
 
 
 
 
 
 
 
 
Current assets:
 
 
 
 
 
 
 
 
 
 
 
Cash and cash equivalents
$
601.1

 
$
—

 
$
318.0

 
$
159.8

 
$
—

 
$
1,078.9

Accounts receivable, net
0.9

 
6.7

 
203.6

 
377.6

 
—

 
588.8

Other receivables, net
46.9

 
—

 
29.1

 
61.2

 
—

 
137.2

Total inventories, net
—

 
—

 
83.0

 
124.2

 
—

 
207.2

Other assets, net
9.7

 
4.0

 
44.7

 
35.6

 
—

 
94.0

Deferred tax assets
—

 
5.8

 
—

 
12.1

 
(6.3
)
 
11.6

Discontinued operations
—

 
—

 
—

 
0.3

 
—

 
0.3

Intercompany accounts receivable
—

 
49.1

 
1,449.6

 
1,537.3

 
(3,036.0
)
 
—

Total current assets
658.6

 
65.6

 
2,128.0

 
2,308.1

 
(3,042.3
)
 
2,118.0

Properties, net
27.6

 
7.2

 
862.9

 
532.4

 
—

 
1,430.1

Goodwill
—

 
11.4

 
305.4

 
1,136.5

 
—

 
1,453.3

Other intangibles, net
—

 
37.2

 
4,150.8

 
398.0

 
—

 
4,586.0

Investment in MillerCoors
—

 
—

 
2,487.9

 
—

 
—

 
2,487.9

Net investment in and advances to subsidiaries
7,925.2

 
5,686.2

 
611.5

 
4,774.0

 
(18,996.9
)
 
—

Deferred tax assets
33.1

 
119.1

 
12.7

 
1.9

 
(16.9
)
 
149.9

Other assets
19.8

 
14.7

 
92.9

 
71.2

 
—

 
198.6

Total assets
$
8,664.3

 
$
5,941.4

 
$
10,652.1

 
$
9,222.1

 
$
(22,056.1
)
 
$
12,423.8

Liabilities and equity
 
 
 
 
 
 
 
 
 
 
 
Current liabilities:
 
 
 
 
 
 
 
 
 
 
 
Accounts payable
$
7.3

 
$
3.2

 
$
100.6

 
$
190.1

 
$
—

 
$
301.2

Accrued expenses and other liabilities
34.6

 
4.7

 
270.4

 
337.1

 
—

 
646.8

Derivative hedging instruments
—

 
101.4

 
4.7

 
1.5

 
—

 
107.6

Deferred tax liability
6.2

 
—

 
161.4

 
—

 
(6.3
)
 
161.3

Short-term borrowings and current portion of long-term debt
—

 
44.7

 
—

 
2.2

 
—

 
46.9

Discontinued operations
—

 
—

 
—

 
13.4

 
—

 
13.4

Intercompany accounts payable
413.8

 
26.1

 
1,566.5

 
1,029.6

 
(3,036.0
)
 
—

Total current liabilities
461.9

 
180.1

 
2,103.6

 
1,573.9

 
(3,042.3
)
 
1,277.2

Long-term debt
546.2

 
—

 
1,368.7

 
—

 
—

 
1,914.9

Pension and post-retirement benefits
—

 
2.7

 
392.5

 
302.3

 
—

 
697.5

Derivative hedging instruments
—

 
210.7

 
1.5

 
0.3

 
—

 
212.5

Deferred tax liability
—

 
—

 
—

 
472.5

 
(16.9
)
 
455.6

Other liabilities, net
8.3

 
14.5

 
35.3

 
95.8

 
—

 
153.9

Discontinued operations
—

 
—

 
—

 
22.0

 
—

 
22.0

Intercompany notes payable
—

 
618.0

 
—

 
4,966.3

 
(5,584.3
)
 
—

Total liabilities
1,016.4

 
1,026.0

 
3,901.6

 
7,433.1

 
(8,643.5
)
 
4,733.6

MCBC stockholders' equity
8,267.8

 
4,954.7

 
11,675.6

 
1,746.7

 
(18,996.9
)
 
7,647.9

Intercompany notes receivable
(619.9
)
 
(39.3
)
 
(4,925.1
)
 
—

 
5,584.3

 
—

Total stockholders' equity
7,647.9

 
4,915.4

 
6,750.5

 
1,746.7

 
(13,412.6
)
 
7,647.9

Noncontrolling interests
—

 
—

 
—

 
42.3

 
—

 
42.3

Total equity
7,647.9

 
4,915.4

 
6,750.5

 
1,789.0

 
(13,412.6
)
 
7,690.2

Total liabilities and equity
$
8,664.3

 
$
5,941.4

 
$
10,652.1

 
$
9,222.1

 
$
(22,056.1
)
 
$
12,423.8

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

 
Parent
Guarantor
and 2007
Issuer
 
2002
Issuer
 
Subsidiary
Guarantors
 
Subsidiary
Non
Guarantors
 
Eliminations
 
Consolidated
Net cash provided by (used in) operating activities
$
155.3

 
$
180.9

 
$
(253.9
)
 
$
72.1

 
$
(104.0
)
 
$
50.4

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

 
(19.1
)
 
(13.6
)
 
—

 
(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 derivatives
—

 
(110.6
)
 
—

 
—

 
—

 
(110.6
)
Investment in and advances to an unconsolidated affiliate
—

 
—

 
—

 
(4.6
)
 
—

 
(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
)
 
(110.1
)
 
126.4

 
—

 
23.6

 
—

Net cash provided by (used in) investing activities
(41.0
)
 
(220.7
)
 
(4.1
)
 
(16.0
)
 
23.6

 
(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
)
 
—

 
(104.0
)
 
—

 
104.0

 
(57.8
)
Dividends paid to noncontrolling interests holders
—

 
—

 
—

 
(1.7
)
 
—

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

 
—

 
(0.1
)
 
—

 
—

 
(0.1
)
Payments on short-term borrowings, net
—

 
—

 
—

 
(10.8
)
 
—

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

 
—

 
—

 
1.5

 
—

 
1.5

Net intercompany financing activity
—

 
39.8

 
100.0

 
(116.2
)
 
(23.6
)
 
—

Net cash provided by (used in) financing activities
(34.8
)
 
39.8

 
(4.1
)
 
(127.2
)
 
80.4

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

 
—

 
(262.1
)
 
(71.1
)
 
—

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

 
—

 
8.4

 
2.7

 
—

 
11.1

Balance at beginning of year
601.1

 
—

 
318.0

 
159.8

 
—

 
1,078.9

Balance at end of period
$
680.6

 
$
—

 
$
64.3

 
$
91.4

 
$
—

 
$
836.3

MOLSON COORS BREWING COMPANY AND SUBSIDIARIES
CONDENSED CONSOLIDATING STATEMENT OF CASH FLOWS
FOR THE THIRTEEN WEEKS ENDED MARCH 26, 2011
(IN MILLIONS)
(UNAUDITED)

 
Parent
Guarantor
and 2007
Issuer
 
2002
Issuer
 
Subsidiary
Guarantors
 
Subsidiary
Non
Guarantors
 
Eliminations
 
Consolidated
Net cash (used in) provided by operating activities
$
(22.6
)
 
$
(5.2
)
 
$
32.8

 
$
40.0

 
$
—

 
$
45.0

CASH FLOWS FROM INVESTING ACTIVITIES:
 
 
 
 
 
 
 
 
 
 
 
Additions to properties
(0.9
)
 
—

 
(19.4
)
 
(14.0
)
 
—

 
(34.3
)
Proceeds from sales of properties and intangible assets
—

 
—

 
—

 
1.2

 
—

 
1.2

Acquisition of businesses, net of cash acquired
—

 
—

 
—

 
(29.4
)
 
—

 
(29.4
)
Investment in MillerCoors
—

 
—

 
(277.2
)
 
—

 
—

 
(277.2
)
Return of capital from MillerCoors
—

 
—

 
177.5

 
—

 
—

 
177.5

Proceeds from settlements of derivative instruments
15.4

 
—

 
—

 
—

 
—

 
15.4

Trade loan repayments from customers
—

 
 
 
—

 
3.7

 
—

 
3.7

Trade loans advanced to customers
—

 
—

 
—

 
(2.6
)
 
—

 
(2.6
)
Other
 
 
 
 
0.2

 
0.9

 
 
 
1.1

Net intercompany investing activity
0.2

 
(1.8
)
 
—

 
44.3

 
(42.7
)
 
—

Net cash provided by (used in) investing activities
14.7

 
(1.8
)
 
(118.9
)
 
4.1

 
(42.7
)
 
(144.6
)
CASH FLOWS FROM FINANCING ACTIVITIES:
 

 
 

 
 

 
 

 
 

 
 

Exercise of stock options under equity compensation plans
4.3

 
—

 
—

 
—

 
—

 
4.3

Excess tax benefits from share-based compensation
0.8

 
—

 
—

 
—

 
—

 
0.8

Dividends paid
(46.2
)
 
—

 
—

 
(5.9
)
 
—

 
(52.1
)
Payments on short-term borrowings, net
—

 
—

 
—

 
6.8

 
—

 
6.8

Net (payments) proceeds from revolving credit facilities
—

 
—

 
—

 
0.4

 
—

 
0.4

Change in overdraft balances and other
—

 
—

 
—

 
(10.3
)
 
—

 
(10.3
)
Net intercompany financing activity
9.3

 
—

 
58.5

 
(110.5
)
 
42.7

 
—

Net cash provided by (used in) financing activities
(31.8
)
 
—

 
58.5

 
(119.5
)
 
42.7

 
(50.1
)
CASH AND CASH EQUIVALENTS:
 
 
 
 
 
 
 
 
 
 
 
Net increase (decrease) in cash and cash equivalents
(39.7
)
 
(7.0
)
 
(27.6
)
 
(75.4
)
 
—

 
(149.7
)
Effect of foreign exchange rate changes on cash and cash equivalents
—

 
—

 
5.3

 
8.5

 
—

 
13.8

Balance at beginning of year
832.0

 
7.0

 
190.1

 
188.5

 
—

 
1,217.6

Balance at end of period
$
792.3

 
$
—

 
$
167.8

 
$
121.6

 
$
—

 
$
1,081.7


Subsequent Events
Subsequent Events
Subsequent Events
Acquisition of StarBev
On April 3, 2012, we entered into a sale and purchase agreement (the ‘‘SPA’’) to purchase all of the issued share capital of StarBev from StarBev L.P. (the ‘‘Seller’’) (the ‘‘Acquisition’’). The Acquisition is conditioned only upon the receipt of certain European competition law approvals. We may also terminate the SPA upon uncured and material breaches of certain covenants and warranties by the Seller or the StarBev management team, or in the event of a binding order from the Serbian Commission for the Protection of Competition or the European Commission prohibiting the Acquisition.
This business generated calendar year 2011 sales of approximately $953 million and earnings before interest, taxes, depreciation and amortization of approximately $322 million pursuant to International Financial Reporting Standards as adopted in the European Union. Including the payoff of existing StarBev indebtedness, the total purchase price in the Acquisition is approximately €2.65 billion ($3.54 billion). These USD amounts are based on the foreign exchange rate as of April 3, 2012. Fluctuations in the purchase price could occur from now until the closing of the Acquisition due to changes in foreign exchange rates, any additional interest related to existing StarBev indebtedness and any change in the fair value of the convertible note (described below). In connection with the obligation to pay the purchase price, we have issued $1.9 billion of senior notes. In addition, we have entered into a term loan agreement and revolving credit agreement and will issue a €500 million convertible note to the Seller. These financing activities are further described below.
Headquartered in Amsterdam, The Netherlands, and Prague, Czech Republic, StarBev operates nine breweries in Central Europe. StarBev has brewing operations in the Czech Republic, Serbia, Croatia, Romania, Bulgaria, Hungary and Montenegro and also sells its brands in Bosnia-Herzegovina and Slovakia. In 2011, StarBev held a top-three market share position in each of its markets, and its brand portfolio includes local champions such as Borsodi, Kamenitza, Bergenbier, Ozusko, Jelen, Staropramen and Niksicko, and it also distributes other brands under license.
Senior Notes
On May 3, 2012, we issued $1.9 billion of senior notes with portions maturing in 2017, 2022 and 2042. The 2017 senior notes were issued in an initial aggregate principal amount of $300 million at 2.0% and will mature on May 1, 2017 (the "2017 notes"). The 2022 senior notes were issued in an initial aggregate principal amount of $500 million at 3.5% and will mature on May 1, 2022 (the "2022 notes"). The 2042 senior notes were issued in an initial aggregate principal amount of $1.1 billion at 5.0% and will mature on May 1, 2042 (the "2042 notes"). The issuance resulted in total proceeds to us, before expenses, of $1,880.7 million. If we do not complete the acquisition on or prior to November 2, 2012, or if, prior to such date, the sale and purchase agreement is terminated, we will be obligated to redeem all of the notes at a redemption price equal to 101% of the aggregate principal amount of the notes, plus accrued and unpaid interest. The issuance adds a number of guarantors to these debt securities as well as to our existing senior obligations, consisting principally of the U.K. operating entity. See Note 16, "Supplemental Guarantor Information" for further discussion and recast guarantor financial information reflective of this change. The StarBev operating results will be included in the non-guarantor categories, as the StarBev entities will not be guarantors.
Concurrent with the announcement of our proposed acquisition of StarBev, we entered into a bridge loan agreement, which we terminated upon the closing of our offering of the $1.9 billion senior notes.
Our risk management policy prohibits speculating on specific events, including the direction of interest rates. In advance of our bond issuance, we systematically removed a portion of our interest rate market risk by entering into standard pre-issuance U.S. Treasury interest rate hedges. This resulted in an increase in the certainty of our yield to maturity when issuing the notes. 
Term Loan Agreement
On April 3, 2012, we entered into a term loan agreement (the ‘‘Term Loan Agreement’’) that provides for a four-year term loan facility of $300 million. The obligations under the Term Loan Agreement are our general unsecured obligations. The Term Loan Agreement contains customary events of default, specified representations and warranties and covenants, including, among other things, covenants that restrict our and our subsidiaries’ ability to incur certain additional priority indebtedness, create or permit liens on assets or engage in mergers or consolidations.
Revolving Credit Agreement
On April 3, 2012, we also entered into a revolving credit agreement (the ‘‘Credit Agreement’’). The Credit Agreement provides for a four-year revolving credit facility of $300 million that was subsequently amended to increase the borrowing limit to $550 million. These loan facilities are not publicly registered in the U.S. or Canada. The Credit Agreement contains customary events of default and specified representations and warranties and covenants, including, among other things, covenants that restrict our and our subsidiaries’ ability to incur certain additional priority indebtedness, create or permit liens on assets, or engage in mergers or consolidations.
2011 Revolving Credit Agreement
On April 23, 2012, we amended our 4-year revolving credit facility (the “2011 Credit Agreement”) to incorporate the rating of Fitch Ratings Ltd., which will be used in conjunction with the ratings of S&P and Moody's to determine the applicable interest rate margin for borrowings under the 2011 Credit Agreement.
Convertible Note
The SPA includes an agreed form of a convertible note term sheet setting out the material terms of a €500 million Zero Coupon Senior Unsecured Convertible Note due 2013 (the ‘‘Convertible Note’’) to be issued by us to the Seller upon the closing of the Acquisition. The Convertible Note will mature on December 31, 2013, and will be a senior unsecured obligation guaranteed by MCBC. We will also guarantee our obligations under the 2017 notes, the 2022 notes, the 2042 notes, the Term Loan Agreement and the Revolving Credit Facility upon consummation of the Acquisition. The Convertible Note will allow the Seller to put the Convertible Note to us beginning on the earlier of (i) the date that is 30 days after we announce our 2012 annual financial results and (ii) March 31, 2013, and ending on December 19, 2013, for the greater of the principal amount of the Convertible Note and the aggregate cash value of 12,894,044 shares of our Class B Common Stock, as adjusted for certain corporate events.
In connection with the financing activities above, we anticipate approximately $70 million to $90 million in discounts, debt issuance and other related costs, of which approximately $50 million to $60 million are expected to be recognized in the second quarter of 2012.
Additional Subsidiary Guarantors
As of May 3, 2012, Molson Coors Brewing Company (UK) Limited, Molson Coors Holdings Limited and Golden Acquisition were added as additional subsidiary guarantors under each of the (i) Term Loan Agreement, dated as of April 3, 2012, (ii) Credit Agreement, dated as of April 3, 2012, (iii) Credit Agreement, dated as of April 12, 2011, (iv) 6 3/8% Notes due 2012 guaranteed by the Company, (v) 5.00% Senior Notes due 2015 guaranteed by the Company, (vi) 2.5% Convertible Notes due 2013 issued by the Company and (vii) 3.95% Series A Notes due 2017.
Management Transitions
On May 7, 2012, our Board of Directors approved the following management transitions effective at and contingent upon the closing of the Acquisition: (i) we named Mark Hunter, the current President and Chief Executive Officer of our U.K. and Ireland business unit, as the President and Chief Executive Officer of our Central European business unit; (ii) we named Stewart Glendinning, our current Chief Financial Officer, as the President and Chief Executive Officer of our U.K. and Ireland business unit; and (iii) we named Gavin Hattersley, the current Executive Vice President and Chief Financial Officer for MillerCoors, as our Chief Financial Officer.
Basis of Presentation and Summary of Significant Accounting Policies (Tables)
Rollforward of the allowance for credit losses
A rollforward of the allowance for the quarters ended March 31, 2012, and March 26, 2011, is as follows (in millions):
 
As of
 
March 31, 2012
March 26, 2011
Balance at beginning of the year
$
6.2

$
9.1

Addition charged to expense, net of recoveries
1.4

0.9

Write-offs
(0.6
)
(0.5
)
Foreign currency and other adjustments
—

0.3

Balance at end of first quarter
$
7.0

$
9.8

Segment Reporting (Tables)
Net sales by segment 
The following table sets forth net sales by segment:
 
Thirteen Weeks Ended
 
March 31, 2012
 
March 26, 2011
 
(In millions)
Canada
$
402.3

 
$
393.8

U.K. 
263.4

 
274.7

MCI
28.1

 
21.6

Corporate
0.3

 
0.3

Eliminations(1)
(2.7
)
 
—

         Consolidated
$
691.4

 
$
690.4

Income (loss) from continuing operations before income taxes by segment 
The following table sets forth income (loss) from continuing operations before income taxes by segment:
 
Thirteen Weeks Ended
 
March 31, 2012
 
March 26, 2011
 
(In millions)
Canada
$
43.9

 
$
52.2

U.S. 
118.9

 
101.2

U.K. 
1.3

 
6.8

MCI
(8.6
)
 
(7.5
)
Corporate
(58.9
)
 
(54.2
)
         Consolidated
$
96.6

 
$
98.5

Total assets by segment 
The following table sets forth total assets by segment:
 
As of
 
March 31, 2012
 
December 31, 2011
 
(In millions)
Canada
$
6,394.2

 
$
6,541.6

U.S. 
2,613.1

 
2,487.9

U.K. 
2,251.6

 
2,293.4

MCI
152.3

 
151.7

Corporate
1,024.7

 
948.9

Discontinued operations
0.3

 
0.3

         Consolidated
$
12,436.2

 
$
12,423.8

Investments (Tables)
Summarized financial information of MillerCoors 
Summarized financial information for MillerCoors is as follows (in millions):
Condensed Balance Sheets
 
As of
 
March 31, 2012
 
December 31, 2011
Current assets
$
997.4

 
$
810.9

Non-current assets
8,881.2

 
8,861.7

Total assets
$
9,878.6

 
$
9,672.6

Current liabilities
$
875.5

 
$
922.7

Non-current liabilities
1,421.9

 
1,471.3

Total liabilities
2,297.4

 
2,394.0

Noncontrolling interests
42.1

 
36.7

Owners' equity
7,539.1

 
7,241.9

Total liabilities and equity
$
9,878.6

 
$
9,672.6

Results of Operations
 
Three Months Ended
 
March 31, 2012
 
March 31, 2011
Net sales
$
1,759.8

 
$
1,699.1

Cost of goods sold
(1,070.0
)
 
(1,063.0
)
Gross profit
$
689.8

 
$
636.1

Operating income
$
279.0

 
$
238.7

Net income attributable to MillerCoors
$
275.3

 
$
234.7

MCBC's proportional share in MillerCoors of net income reported under the equity method 
The following represents MCBC's proportional share in net income attributable to MillerCoors reported under the equity method:
 
Thirteen Weeks Ended
 
March 31, 2012
 
March 26, 2011
 
(In millions, except percentages)
Net income attributable to MillerCoors
$
275.3

 
$
234.7

MCBC economic interest
42
%
 
42
%
MCBC proportionate share of MillerCoors net income
115.6

 
98.6

Amortization of the difference between MCBC contributed cost basis and proportional share of the underlying equity in net assets of MillerCoors(1)
0.4

 
2.4

Share-based compensation adjustment(2)
2.9

 
0.2

Equity income in MillerCoors
$
118.9

 
$
101.2

(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")) by approximately $588 million as of March 31, 2012. This difference, with the exception of goodwill and land, is being amortized as additional equity income over the remaining useful lives of the contributed long-lived amortizing assets. The current basis difference combined with the $35.0 million recorded in 2008 and 2009 related to differences resulting from accounting policy elections must be considered to reconcile MillerCoors equity to our investment in MillerCoors.
(2)
The net adjustment is to record all share-based compensation associated with pre-existing equity awards to be settled in Class B common stock held by former employees now employed by MillerCoors and to eliminate all share-based compensation impacts related to pre-existing SABMiller plc equity awards held by former Miller employees now employed by MillerCoors. As of the end of the second quarter of 2011, the share-based awards granted to former CBC employees now employed by MillerCoors became fully vested, as such; no further adjustments will be recorded related to these awards.
Schedules of Consolidated Investments 
The following summarizes the assets of our consolidated VIEs, including noncontrolling interests. None of our consolidated VIEs held debt as of March 31, 2012, or December 31, 2011.
 
As of
 
March 31, 2012
 
December 31, 2011
 
Total assets
 
(In millions)
Grolsch
$
22.9

 
$
20.4

Cobra U.K.
$
32.7

 
$
31.6

The following summarizes the results of operations of our consolidated VIEs (including noncontrolling interests).
 
Thirteen Weeks Ended
 
March 31, 2012
 
March 26, 2011
 
Revenues
 
Pre-tax income
 
Revenues
 
Pre-tax income
 
(In millions)
Grolsch(1)
$
5.3

 
$
0.8

 
$
5.2

 
$
0.7

Cobra U.K.
$
8.2

 
$
0.4

 
$
8.3

 
$
1.0

(1)
Substantially all such sales for Grolsch are made to us and as such, are eliminated in consolidation.
Share-Based Payments (Tables)
Schedule of components of share-based compensation expense 
The following table summarizes components of the share-based compensation expense:
 
Thirteen Weeks Ended
 
March 31, 2012
 
March 26, 2011
 
(In millions)
Stock options and SOSARs
 
 
 
Pre-tax compensation expense
$
1.8

 
$
2.8

Tax benefit
(0.5
)
 
(0.8
)
After-tax compensation expense
$
1.3

 
$
2.0

RSUs and DSUs
 
 
 
Pre-tax compensation expense
$
2.0

 
$
2.3

Tax benefit
(0.6
)
 
(0.5
)
After-tax compensation expense
$
1.4

 
$
1.8

PUs
 
 
 
Pre-tax compensation expense
$
1.0

 
$
3.0

Tax benefit
(0.4
)
 
(0.9
)
After-tax compensation expense
$
0.6

 
$
2.1

Total after-tax compensation expense
$
3.3

 
$
5.9

Schedule of stock options and SOSARs outstanding and the activity for the period 
The following table represents the summary of stock options and SOSARs outstanding as of March 31, 2012, and the activity during the first quarter of 2012:
 
Outstanding
options
 
Weighted-average
exercise price per
share
 
Weighted-average
remaining
contractual life
(years)
 
Aggregate
intrinsic value
 
(In millions, except per share amounts and years)
Outstanding as of December 31, 2011
7.1
 
$38.69
 
4.31
 
$
43.1

Granted
0.2
 
$42.80
 
 
 
 
Exercised
(0.7)
 
$29.80
 
 
 
 
Forfeited
—
 
$43.53
 
 
 
 
Outstanding as of March 31, 2012
6.6
 
$39.70
 
4.59
 
$
42.8

Exercisable at March 31, 2012
5.6
 
$39.09
 
3.96
 
$
41.0

Schedule of non-vested RSUs, PUs and DSUs outstanding and the activity for the period 
The following table represents non-vested RSUs, DSUs and PUs as of March 31, 2012, and the activity during the first quarter of 2012:
 
RSUs and DSUs
 
PUs
 
Units
 
Weighted-average
grant date fair value
per unit
 
Units
 
Weighted-average
grant date fair value
per unit
 
(In millions, except
per unit amounts)
 
(In millions, except
per unit amounts)
Non-vested as of December 31, 2011
0.6

 
$43.35
 
2.0

 
$11.67
Granted
0.3

 
$42.80
 
0.7

 
$14.35
Vested
—

 
$43.31
 
—

 
$—
Forfeited
—

 
$43.26
 
(0.1
)
 
$11.05
Non-vested as of March 31, 2012
0.9

 
$43.19
 
2.6

 
$11.03
Schedule of share-based compensation weighted average assumptions 
The fair value of each option granted in the first quarter of 2012 and 2011, respectively, was determined on the date of grant using the Black-Scholes option-pricing model with the following weighted-average assumptions:
 
Thirteen Weeks Ended
 
March 31, 2012
 
March 26, 2011
Risk-free interest rate
1.56%
 
2.55%
Dividend yield
2.98%
 
2.52%
Volatility range
25.80%-27.56%
 
25.26%-28.11%
Weighted-average volatility
25.84%
 
26.37%
Expected term (years)
4.0-7.7
 
4.0-7.7
Weighted-average fair market value
$8.18
 
$9.66
Special items (Tables)
Special items recorded by segment 
The table below summarizes special items recorded by segment:
 
Thirteen Weeks Ended
 
March 31, 2012
 
March 26, 2011
 
(In millions)
Employee related charges
 
 
 
Restructuring
 
 
 
Canada
$
1.6

 
$
—

U.K.
1.8

 
0.3

Corporate
1.1

 
—

Special termination benefits
 
 
 
Canada(1)
0.5

 
2.8

Unusual or infrequent items
 
 
 
Canada - Flood insurance reimbursement(2)
—

 
(0.6
)
U.K. - Release of non-income-related tax reserve(3)
(3.5
)
 
(2.5
)
Total Special items, net
$
1.5

 
$
—

(1)
During the first quarters of 2012 and 2011, we recognized charges related to special termination benefits as eligible employees elected early retirement offered as a result of the Montreal Brewery and Distribution group's ratification of a Collective Bargaining Agreement with MCC in the first quarter of 2011.     
(2)
During 2011, we incurred expenses related to flood damages at our Toronto offices, which was partially offset by insurance proceeds.
(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 2012 and 2011 represent a release of a portion of this reserve as a result of a change in estimate.
Change in the restructuring accrual 
The table below summarizes the activity in the restructuring accruals:
 
Restructuring charges
 
Canada
 
U.K.
 
Corporate
 
Total
 
(In millions)
Balance at December 31, 2011
$
0.1

 
$
1.8

 
$
—

 
$
1.9

Charges incurred
1.6

 
1.8

 
1.1

 
4.5

Payments made
—

 
(1.1
)
 
—

 
(1.1
)
Foreign currency and other adjustments
(0.1
)
 
(0.3
)
 
—

 
(0.4
)
Balance at March 31, 2012
$
1.6

 
$
2.2

 
$
1.1

 
$
4.9

Other Income and Expense (Tables)
Summarization of other income and expenses
The table below summarizes other income and expense:
 
Thirteen Weeks Ended
 
March 31, 2012
 
March 26, 2011
 
(In millions)
Gain (loss) from Foster's total return swap and related financial instruments(1)
$
—

 
$
0.8

Gain (loss) from other foreign exchange and derivative activity
(1.7
)
 
(0.7
)
Environmental reserve
—

 
(0.2
)
Other, net
0.3

 
(0.6
)
Other income (expense), net
$
(1.4
)
 
$
(0.7
)
(1)
During January 2011, we settled our remaining Foster's Group Limited's ("Fosters") total return swap and related financial instruments.
Earnings per Share ("EPS") (Tables)
Effect of dilutive securities on diluted earnings per share 
The following summarizes the effect of dilutive securities on diluted EPS:
 
Thirteen Weeks Ended
 
March 31, 2012
 
March 26, 2011
 
(In millions)
Amounts attributable to MCBC
 
 
 
Net income (loss) from continuing operations
$
79.4

 
$
82.6

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

 
0.3

Net income (loss) attributable to MCBC
$
79.5

 
$
82.9

Weighted average shares for basic EPS
180.3

 
186.9

Effect of dilutive securities:
 
 
 
Options and SOSARs
0.8

 
1.0

RSUs, PUs and DSUs
0.6

 
0.8

Weighted average shares for diluted EPS
181.7

 
188.7

Basic net income (loss) per share:
 
 
 
Continuing operations attributable to MCBC
$
0.44

 
$
0.44

Discontinued operations attributable to MCBC
—

 
—

Net income attributable to MCBC
$
0.44

 
$
0.44

Diluted net income (loss) per share:
 
 
 
Continuing operations attributable to MCBC
$
0.44

 
$
0.44

Discontinued operations attributable to MCBC
—

 
—

Net income attributable to MCBC
$
0.44

 
$
0.44

Dividends declared and paid per share
$
0.32

 
$
0.28

Anti-dilutive securities excluded from computation of diluted earnings per share 
The following anti-dilutive securities were excluded from the computation of the effect of dilutive securities on diluted earnings per share:
 
Thirteen Weeks Ended
 
March 31, 2012
 
March 26, 2011
 
(In millions)
Stock options, SOSARs and RSUs(1)
0.8

 
0.4

Shares of Class B common stock issuable upon assumed conversion of the 2.5% Convertible Senior Notes(2)
10.9

 
10.5

Warrants to issue shares of Class B common stock(2)
10.9

 
10.5

 
22.6

 
21.4

(1)
Exercise prices exceed the average market price of the common shares or are anti-dilutive due to the impact of the unrecognized compensation cost on the calculation of assumed proceeds in the application of the treasury stock method.
(2)
We issued $575 million of senior convertible notes in June 2007. The impact of a net share settlement of the conversion amount at maturity will begin to dilute earnings per share if and when our stock price reaches $52.79. The impact of stock that could be issued to settle share obligations we could have under the warrants we issued simultaneously with the convertible notes issuance will begin to dilute earnings per share when our stock price reaches $67.57. The potential receipt of MCBC stock from counterparties under our purchased call options when and if our stock price is between $52.79 and $67.57 would be anti-dilutive and excluded from any calculations of earnings per share.
Goodwill and Intangible Assets (Tables)
Schedule of changes in goodwill 
The following summarizes the change in goodwill for the first quarter of 2012 (in millions):
Balance at December 31, 2011
$
1,453.3

Business acquisitions
—

Foreign currency translation
37.8

Purchase price adjustment
0.4

Balance at March 31, 2012
$
1,491.5

Schedule of goodwill by segment 
Goodwill was attributed to our segments as follows:
 
As of
 
March 31, 2012
 
December 31, 2011
 
(In millions)
Canada
$
705.0

 
$
689.5

United Kingdom
768.1

 
746.1

MCI
18.4

 
17.7

Consolidated
$
1,491.5

 
$
1,453.3

Schedule of intangible assets excluding goodwill 
The following table presents details of our intangible assets, other than goodwill, as of March 31, 2012:
 
Useful life
 
Gross
 
Accumulated
amortization
 
Net
 
(Years)
 
(In millions)
Intangible assets subject to amortization:
 
 
 
 
 
 
 
Brands
 3 - 40
 
$
326.0

 
$
(188.4
)
 
$
137.6

Distribution rights
 2 - 23
 
350.0

 
(243.2
)
 
106.8

Patents and technology and distribution channels
 3 - 10
 
35.0

 
(30.6
)
 
4.4

Land use rights and other
 2 - 42
 
6.5

 
(0.9
)
 
5.6

Intangible assets not subject to amortization:
 
 
 
 
 
 
 
Brands
 Indefinite
 
3,399.9

 
—

 
3,399.9

Distribution networks
 Indefinite
 
1,012.9

 
—

 
1,012.9

Other
 Indefinite
 
15.6

 
—

 
15.6

Total
 
 
$
5,145.9

 
$
(463.1
)
 
$
4,682.8


The following table presents details of our intangible assets, other than goodwill, as of December 31, 2011:
 
Useful life
 
Gross
 
Accumulated
amortization
 
Net
 
(Years)
 
(In millions)
Intangible assets subject to amortization:
 
 
 
 
 
 
 
Brands
3 - 40
 
$
316.9

 
$
(179.0
)
 
$
137.9

Distribution rights
2 - 23
 
342.0

 
(234.0
)
 
108.0

Patents and technology and distribution channels
3 - 10
 
34.9

 
(28.9
)
 
6.0

Land use rights and other
2 - 42
 
6.5

 
(0.8
)
 
5.7

Intangible assets not subject to amortization:
 
 
 
 
 
 
 
Brands
Indefinite
 
3,322.4

 
—

 
3,322.4

Distribution networks
Indefinite
 
990.5

 
—

 
990.5

Other
Indefinite
 
15.5

 
—

 
15.5

Total
 
 
$
5,028.7

 
$
(442.7
)
 
$
4,586.0

Schedule of estimated amortization expense related to intangible assets 
Based on foreign exchange rates as of March 31, 2012, the following is our estimated amortization expense related to intangible assets for the next five years:
 
Amount
 
(In millions)
2012 - remaining
$
26.3

2013
$
34.8

2014
$
34.7

2015
$
32.1

2016
$
32.1

Debt (Tables)
Total long-term borrowings
Our total long-term borrowings as of March 31, 2012, and December 31, 2011, were composed of the following:
 
As of
 
March 31, 2012
 
December 31, 2011
 
(In millions)
Senior notes:
 
 
 
$850 million 6.375% notes due 2012
$
44.6

 
$
44.6

Canadian Dollar ("CAD") 900 million 5.0% notes due 2015
901.2

 
881.2

$575 million 2.5% convertible notes due 2013(1)(2)
575.0

 
575.0

CAD 500 million 3.95% Series A notes due 2017
500.7

 
489.6

Credit facility(3)
—

 
—

Less: unamortized debt discounts and other(2)
(26.5
)
 
(30.8
)
Total long-term debt (including current portion)
1,995.0

 
1,959.6

Less: current portion of long-term debt
(44.6
)
 
(44.7
)
Total long-term debt
$
1,950.4

 
$
1,914.9

Total fair value(4)
$
2,126.1

 
$
2,133.6

(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. As of March 2012, our conversion price and ratio are $52.79 and 18.9441 shares, respectively. Currently, the convertible debt's if-converted value does not exceed the principal.
(2)
During the first quarters of 2012 and 2011, we incurred additional non-cash interest expense of $4.5 million and $4.3 million, respectively. We also incurred interest expense related to the 2.5% convertible coupon rate of $3.7 million during the first quarter of 2012, and $3.6 million during the first quarter of 2011. The combination of non-cash and cash interest resulted in an effective interest rate of 5.91% and 5.97% for the first quarters of 2012 and 2011, respectively. In relation to this issuance, paid in capital in the equity section of our balance sheet includes $103.9 million, ($64.2 million net of tax), representing the equity component of the convertible debt. Further, as of March 31, 2012, and December 31, 2011, $24.4 million and $28.9 million, respectively, of the unamortized debt discount and other balance relates to our $575 million convertible debt. We expect to record additional non-cash interest expense of approximately $14 million in 2012 and $11 million in 2013, thereby increasing the carrying value of the convertible debt to its $575 million face value at maturity in July 2013. The remaining $2.1 million and $1.9 million as of March 31, 2012, and December 31, 2011, respectively, relates to unamortized debt premiums, discounts, and other on the additional debt balances.
(3)
During the second quarter of 2011, we terminated our $750 million revolving multicurrency bank credit facility, which was scheduled to expire in August 2011. Additionally, in connection with this termination, we entered into an agreement for a 4-year revolving multicurrency credit facility of $400 million, which provides a $100 million sub-facility available for the issuance of letters of credit. We incurred $2.2 million of issuance costs and up-front fees related to this agreement, which are being amortized over the term of the facility. There were no outstanding borrowings on the $400 million credit facility as of March 31, 2012.
(4)
We utilize market approaches to estimate the fair value of our outstanding long-term borrowings by discounting anticipated future cash flows derived from the contractual terms of the obligations and observable market interest and foreign exchange rates. As of March 31, 2012, and December 31, 2011, the fair value of our outstanding long-term debt was $2,126.1 million and $2,133.6 million, respectively. Our convertible notes are valued based on quoted prices in active markets and would be classified as Level 1 in the fair value hierarchy. These notes had a fair value of $603.2 million and $608.5 million, as of March 31, 2012 and December 31, 2011, respectively. All other debt is valued based on significant other observable inputs and would be classified as Level 2 in the fair value hierarchy. These instruments had a fair value of $1,522.9 million and $1,525.1 million, as of March 31, 2012 and December 31, 2011, respectively.
Derivative Instruments and Hedging Activities (Tables)
Schedule of derivative assets and liabilities measured at fair value 
The table below summarizes our derivative assets and liabilities that were measured at fair value as of March 31, 2012, and December 31, 2011.
 
 
 
March 31, 2012
 
Total at
March 31, 2012
 
Quoted prices in
active markets
(Level 1)
 
Significant other
observable inputs
(Level 2)
 
Significant
unobservable
inputs (Level 3)
 
(In millions)
Cross currency swaps
$
(220.1
)
 
$
—

 
$
(220.1
)
 
$
—

Foreign currency forwards
(4.4
)
 
—

 
(4.4
)
 
—

Commodity swaps
(5.3
)
 
—

 
(5.3
)
 
—

Total
$
(229.8
)
 
$
—

 
$
(229.8
)
 
$
—

 
 
 
 
December 31, 2011
 
Total at
December 31, 2011
 
Quoted prices in
active markets
(Level 1)
 
Significant other
observable inputs
(Level 2)
 
Significant
unobservable
inputs (Level 3)
 
(In millions)
Cross currency swaps
$
(311.9
)
 
$
—

 
$
(311.9
)
 
$
—

Foreign currency forwards
2.2

 
—

 
2.2

 
—

Commodity swaps
(6.9
)
 
—

 
(6.9
)
 
—

Total
$
(316.6
)
 
$
—

 
$
(316.6
)
 
$
—

Fair Value of Derivative Instruments in the Condensed Consolidated Balance Sheets 
Fair Value of Derivative Instruments in the Condensed Consolidated Balance Sheet (in millions, except for certain commodity swaps with notional amounts measured in Metric Tonnes, as noted)
 
March 31, 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 current assets
 
$
—

 
Current derivative hedging instruments
 
$
—

 
 
 
 
Other assets
 
—

 
Long term derivative hedging instruments
 
(220.1
)
Foreign currency forwards
USD
440.2
 
Other current assets
 
1.5

 
Current derivative hedging instruments
 
(6.0
)
 
 
 
 
Other assets
 
2.1

 
Long term derivative hedging instruments
 
(2.0
)
Commodity swaps
Gigajoules
1.3

 
Other current assets
 
0.5

 
Current derivative hedging instruments
 
(1.4
)
 
 
 
 
Other assets
 
0.1

 
Long term derivative hedging instruments
 
(0.3
)
Total derivatives designated as hedging instruments
 
 
 
 
$
4.2

 
 
 
$
(229.8
)
Derivatives not designated as hedging instruments:
 
 
 
 
 
 
 
 
 
 
Aluminum swaps
Metric tonnes (actual)
7,750.0

 
Other current assets
 
$
—

 
Current derivative hedging instruments
 
$
(3.4
)
 
 
 
 
Other assets
 
—

 
Long term derivative hedging instruments
 
—

Diesel swaps
Metric tonnes (actual)
8,050.0

 
Other current assets
 
—

 
Current derivative hedging instruments
 
(0.6
)
 
 
 
 
Other assets
 
—

 
Long term derivative hedging instruments
 
(0.2
)
Total derivatives not designated as hedging instruments
 
 
 
 
$
—

 
 
 
$
(4.2
)

 
December 31, 2011
 
 
 
 
Asset derivatives
 
Liability derivatives
 
Notional amount
 
Balance sheet location
 
Fair value
 
Balance sheet location
 
Fair value
Derivatives designated as hedging instruments:
 
 
 
 
 
 
 
 
 
 
Cross currency swaps
CAD
901.3
 
Other current assets
 
$
—

 
Current derivative hedging instruments
 
$
(103.2
)
 
 
 
 
Other assets
 
—

 
Long term derivative hedging instruments
 
(208.7
)
Foreign currency forwards
USD
464.6
 
Other current assets
 
—

 
Current derivative hedging instruments
 
(1.3
)
 
 
 
 
Other assets
 
3.4

 
Long term derivative hedging instruments
 
—

Commodity swaps
Gigajoules
2.2
 
Other current assets
 
—

 
Current derivative hedging instruments
 
(1.8
)
 
 
 
 
Other assets
 
—

 
Long term derivative hedging instruments
 
(0.5
)
Total derivatives designated as hedging instruments
 
 
 
 
$
3.4

 
 
 
$
(315.5
)
Derivatives not designated as hedging instruments:
 
 
 
 
 
 
 
 
 
 
Aluminum swaps
Metric tonnes (actual)
8,825.0

 
Other current assets
 
$
—

 
Current derivative hedging instruments
 
$
(1.3
)
 
 

 
Other assets
 
—

 
Long term derivative hedging instruments
 
(3.3
)
Diesel swaps
Metric tonnes (actual)
9,668.0

 
Other current assets
 
0.1

 
Current derivative hedging instruments
 
—

Total derivatives not designated as hedging instruments
 
 
 
 
$
0.1

 
 
 
$
(4.6
)
Schedule of Cash Flow Hedges Included in Accumulated Other Comprehensive Income (Loss) [Table Text Block] 
The following summarizes the change in derivative related Accumulated other comprehensive income within the Condensed Consolidated Balance Sheet for the first quarter of 2012 (in millions):
Balance at December 31, 2011
$
1.7

Unrealized gain (loss) on derivative instruments
(27.2
)
Reclassification adjustment on derivative instruments
2.4

Tax benefit (expense)
8.8

Balance at March 31, 2012
$
(14.3
)
The Effect of Derivative Instruments on the Condensed Consolidated Statements of Operations 
The Effect of Derivative Instruments on the Condensed Consolidated Statement of Operations (in millions)
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 in net investment hedge relationships
 
Amount of gain
(loss) recognized
in OCI on
derivative
(effective
portion)
 
Location of gain (loss)
reclassified from AOCI into
income (effective portion)
 
Amount of gain
(loss) recognized
from AOCI on
derivative
(effective portion)
 
Location of gain (loss)
recognized in income on
derivative (ineffective portion
and amount excluded from
effectiveness testing)
 
Amount of gain (loss)
recognized in income
on derivative
(ineffective portion and
amount excluded from
effectiveness testing)
Cross currency contracts
 
$
20.5

 
Other income (expense), net
 
$
—

 
Other income (expense), net
 
$
—

Total
 
$
20.5

 
 
 
$
—

 
 
 
$
—

Note: Amounts recognized in AOCI related to cash flow and net investment hedges are presented gross of taxes
During the period we recorded no significant ineffectiveness related to these cash flow and net investment hedges.
For the Thirteen Weeks Ended March 26, 2011
Derivatives in cash flow hedge relationships
 
Amount of gain
(loss) recognized
in OCI on
derivative
(effective
portion)
 
Location of gain (loss)
reclassified from AOCI into
income (effective portion)
 
Amount of gain
(loss) recognized
from AOCI on
derivative
(effective portion)
 
Location of gain (loss)
recognized in income on
derivative (ineffective portion
and amount excluded from
effectiveness testing)
 
Amount of gain (loss)
recognized in income
on derivative
(ineffective portion and
amount excluded from
effectiveness testing)
Cross currency swaps(1)
 
$
(3.1
)
 
Other income (expense), net
 
$
(23.5
)
 
Other income (expense), net
 
$
—

 
 
 

 
Interest expense, net
 
(3.4
)
 
Interest expense, net
 
—

Forward starting interest rate swaps
 
0.3

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

Foreign currency forwards
 
(8.7
)
 
Other income (expense), net
 
(1.7
)
 
Other income (expense), net
 
—

 
 
 

 
Cost of goods sold
 
(2.4
)
 
Cost of goods sold
 
—

Commodity swaps
 
3.9

 
Cost of goods sold
 
0.2

 
Cost of goods sold
 
—

Total
 
$
(7.6
)
 
 
 
$
(31.1
)
 
 
 
$
—

Note: Amounts recognized in AOCI are presented gross of taxes
(1)
The foreign exchange gain (loss) component of these cross currency swaps is offset by the corresponding gain (loss) on the hedged forecasted transactions in Other income (expense), net and Interest expense, net.
Other Derivatives 
Other Derivatives (in millions)
For the Thirteen Weeks Ended March 31, 2012
Derivatives Not In Hedging Relationship
 
Location of Gain (Loss) Recognized in
Income on Derivative
 
Amount of Gain (Loss) Recognized in
Income on Derivative
Commodity swaps
 
Cost of goods sold
 
$
0.1

 
 
 
 
$
0.1

For the Thirteen Weeks Ended March 26, 2011
Derivatives Not In Hedging Relationship
 
Location of Gain (Loss) Recognized in
Income on Derivative
 
Amount of Gain (Loss) Recognized in
Income on Derivative
Cash settled total return swaps
 
Other income (expense), net
 
$
(0.6
)
Option contracts
 
Other income (expense), net
 
1.5

Foreign currency forwards
 
Other income (expense), net
 
(0.1
)
 
 
 
 
$
0.8


Pension and Other Postretirement Benefits (Tables)
Net periodic pension costs under retirement plans and other post-retirement benefits
The net periodic pension costs under retirement plans and other postretirement benefits were as follows:
 
Thirteen Weeks Ended March 31, 2012
 
Canada plans
 
U.S. plans
 
U.K. plan
 
MCI
 
Consolidated
 
(In millions)
Defined Benefit Plans
 
 
 
 
 
 
 
 
 
Service cost
$
4.1

 
$
—

 
$
—

 
$
0.1

 
$
4.2

Interest cost
16.6

 
—

 
24.5

 
—

 
41.1

Expected return on plan assets
(15.3
)
 
—

 
(28.2
)
 
—

 
(43.5
)
Amortization of prior service cost
0.2

 
—

 
—

 
—

 
0.2

Amortization of net actuarial loss
5.4

 
—

 
4.4

 
—

 
9.8

Less expected participant contributions
(0.4
)
 
—

 
—

 
—

 
(0.4
)
Net periodic pension cost (benefit)
$
10.6

 
$
—

 
$
0.7

 
$
0.1

 
$
11.4

Other Postretirement Benefits
 
 
 
 
 
 
 
 
 
Service cost—benefits earned during the period
$
0.6

 
$
0.1

 
$
—

 
$
—

 
$
0.7

Interest cost on projected benefit obligation
2.0

 
—

 
—

 
—

 
2.0

Amortization of prior service cost (gain)
(0.9
)
 
—

 
—

 
—

 
(0.9
)
Amortization of net actuarial loss (gain)
(0.1
)
 
—

 
—

 
—

 
(0.1
)
Net periodic postretirement benefit cost
$
1.6

 
$
0.1

 
$
—

 
$
—

 
$
1.7

 
Thirteen Weeks Ended March 26, 2011
 
Canada plans
 
U.S. plans
 
U.K. plan
 
MCI
 
Consolidated
 
(In millions)
Defined Benefit Plans
 
 
 
 
 
 
 
 
 
Service cost
$
4.7

 
$
—

 
$
—

 
$
—

 
$
4.7

Interest cost
18.1

 
0.1

 
26.9

 
—

 
45.1

Expected return on plan assets
(18.6
)
 
—

 
(31.2
)
 
—

 
(49.8
)
Amortization of prior service cost
0.2

 
—

 
—

 
—

 
0.2

Amortization of net actuarial loss
2.3

 
—

 
2.7

 
—

 
5.0

Less expected participant contributions
(0.4
)
 
—

 
—

 
—

 
(0.4
)
Special termination of benefits
—

 
—

 
—

 
—

 
—

Net periodic pension cost (benefit)
$
6.3

 
$
0.1

 
$
(1.6
)
 
$
—

 
$
4.8

Other Postretirement Benefits
 
 
 
 
 
 
 
 
 
Service cost—benefits earned during the period
$
0.5

 
$
0.1

 
$
—

 
—

 
$
0.6

Interest cost on projected benefit obligation
1.9

 
—

 
—

 
—

 
1.9

Amortization of prior service cost (gain)
(0.9
)
 
—

 
—

 
—

 
(0.9
)
Amortization of net actuarial loss
(0.9
)
 
—

 
—

 
—

 
(0.9
)
Net periodic postretirement benefit cost
$
0.6

 
$
0.1

 
$
—

 
$
—

 
$
0.7

Commitments and Contingencies (Tables)
Summary of reserves associated with indemnity obligations
The table below provides a summary of reserves associated with the Kaiser indemnity obligations from December 31, 2011, through March 31, 2012:
 
Indemnity Obligations
 
Purchased tax
credits
indemnity
reserve
 
Tax, civil and
labor
indemnity
reserve
 
Total
indemnity
reserves
 
(In millions)
Balance at December 31, 2011
$
21.5

 
$
9.1

 
$
30.6

Changes in estimates
—

 
—

 
—

Foreign exchange transaction impact
0.4

 
0.2

 
0.6

Balance at March 31, 2012
$
21.9

 
$
9.3

 
$
31.2

Basis of Presentation and Summary of Significant Accounting Policies Allowance (Details) (USD $)
In Millions, unless otherwise specified
3 Months Ended
Mar. 31, 2012
Mar. 26, 2011
Rollforward of the allowance for credit losses
 
 
Balance at beginning of the year
$ 6.2 
$ 9.1 
Addition charged to expense, net of recoveries
1.4 
0.9 
Write-offs
(0.6)
(0.5)
Foreign currency and other adjustments
0 
0.3 
Balance at end of first quarter
$ 7.0 
$ 9.8 
Basis of Presentation and Summary of Significant Accounting Policies Narrative (Details)
3 Months Ended
Mar. 31, 2012
weeks
Minimum [Member]
 
Number of Weeks in Reporting Period
13 
Number of Weeks in Fiscal Year Low End of Range (in weeks)
52 
Maximum [Member]
 
Number of Weeks in Fiscal Year Low End of Range (in weeks)
53 
Segment Reporting Net Sales (Details) (USD $)
In Millions, unless otherwise specified
3 Months Ended
Mar. 31, 2012
Mar. 26, 2011
Segment Reporting
 
 
Net sales
$ 691.4 
$ 690.4 
Maximum percentage of sales accounted for by a single customer (as a percent)
10.00% 
 
Canada
 
 
Segment Reporting
 
 
Net sales
402.3 
393.8 
U.K.
 
 
Segment Reporting
 
 
Net sales
263.4 
274.7 
MCI
 
 
Segment Reporting
 
 
Net sales
28.1 
21.6 
Corporate [Member]
 
 
Segment Reporting
 
 
Net sales
0.3 
0.3 
Intersegment sales elimination
 
 
Segment Reporting
 
 
Net sales
$ (2.7)1
$ 0 1
Segment Reporting Income (Loss) From Continuing Operations (Details) (USD $)
In Millions, unless otherwise specified
3 Months Ended
Mar. 31, 2012
Mar. 26, 2011
Segment Reporting
 
 
Income (loss) from continuing operations before income taxes
$ 96.6 
$ 98.5 
Canada
 
 
Segment Reporting
 
 
Income (loss) from continuing operations before income taxes
43.9 
52.2 
U.S.
 
 
Segment Reporting
 
 
Income (loss) from continuing operations before income taxes
118.9 
101.2 
U.K.
 
 
Segment Reporting
 
 
Income (loss) from continuing operations before income taxes
1.3 
6.8 
MCI
 
 
Segment Reporting
 
 
Income (loss) from continuing operations before income taxes
(8.6)
(7.5)
Corporate [Member]
 
 
Segment Reporting
 
 
Income (loss) from continuing operations before income taxes
$ (58.9)
$ (54.2)
Segment Reporting Total Assets (Details) (USD $)
In Millions, unless otherwise specified
Mar. 31, 2012
Dec. 31, 2011
Segment Reporting Information [Line Items]
 
 
Total assets
$ 12,436.2 
$ 12,423.8 
Canada
 
 
Segment Reporting Information [Line Items]
 
 
Total assets
6,394.2 
6,541.6 
U.S.
 
 
Segment Reporting Information [Line Items]
 
 
Total assets
2,613.1 
2,487.9 
U.K.
 
 
Segment Reporting Information [Line Items]
 
 
Total assets
2,251.6 
2,293.4 
MCI
 
 
Segment Reporting Information [Line Items]
 
 
Total assets
152.3 
151.7 
Corporate [Member]
 
 
Segment Reporting Information [Line Items]
 
 
Total assets
1,024.7 
948.9 
Discontinued operations
 
 
Segment Reporting Information [Line Items]
 
 
Total assets
$ 0.3 
$ 0.3 
Investments Financials (Details) (MillerCoors, USD $)
In Millions, unless otherwise specified
3 Months Ended
Mar. 31, 2012
Mar. 31, 2011
Mar. 26, 2011
Dec. 31, 2011
MillerCoors
 
 
 
 
Condensed balance sheets
 
 
 
 
Current assets
$ 997.4 
 
 
$ 810.9 
Noncurrent assets
8,881.2 
 
 
8,861.7 
Total assets
9,878.6 
 
 
9,672.6 
Current liabilities
875.5 
 
 
922.7 
Noncurrent liabilities
1,421.9 
 
 
1,471.3 
Total liabilities
2,297.4 
 
 
2,394.0 
Noncontrolling interests
42.1 
 
 
36.7 
Owners' equity
7,539.1 
 
 
7,241.9 
Total liabilities and equity
9,878.6 
 
 
9,672.6 
Results of operations
 
 
 
 
Net sales
1,759.8 
1,699.1 
 
 
Cost of goods sold
(1,070.0)
(1,063.0)
 
 
Gross profit
689.8 
636.1 
 
 
Operating income
279.0 
238.7 
 
 
Net income attributable to MillerCoors
$ 275.3 
$ 234.7 
$ 234.7 
 
Equity Method Investment, Ownership Percentage
42.00% 
 
42.00% 
 
Investments Proportional (Details) (USD $)
In Millions, unless otherwise specified
3 Months Ended
Mar. 31, 2012
Mar. 31, 2011
Mar. 26, 2011
Schedule of Equity Method Investments [Line Items]
 
 
 
Equity income in MillerCoors
$ 118.9 
 
$ 101.2 
MillerCoors
 
 
 
Schedule of Equity Method Investments [Line Items]
 
 
 
Net income attributable to MillerCoors
275.3 
234.7 
234.7 
MCBC economic interest
42.00% 
 
42.00% 
MCBC proportionate share of MillerCoors net income
115.6 
 
98.6 
Amortization of the difference between MCBC contributed cost basis and proportional share of the underlying equity in the net assets of MillerCoors
0.4 1
 
2.4 1
Share-based compensation adjustment
2.9 2
 
0.2 2
Equity income in MillerCoors
118.9 
 
101.2 
Equity Method Investment, Difference Between Carrying Amount and Underlying Equity
588 
 
 
Basis Difference Relating To Millercoors Assumption Of Liabilities As Part Of Under Funded Multi Employer Pension Plan
$ 35.0 
 
 
Investments Variable Interest Entity (Details) (USD $)
In Millions, unless otherwise specified
3 Months Ended
Mar. 31, 2012
Mar. 26, 2011
Dec. 31, 2011
Variable Interest Entity
 
 
 
Assets
$ 12,436.2 
 
$ 12,423.8 
Revenues
691.4 
690.4 
 
Pre-tax income
96.6 
98.5 
 
Grolsch
 
 
 
Variable Interest Entity
 
 
 
Assets
22.9 
 
20.4 
Revenues
5.3 1
5.2 1
 
Pre-tax income
0.8 1
0.7 1
 
Cobra
 
 
 
Variable Interest Entity
 
 
 
Assets
32.7 
 
31.6 
Revenues
8.2 
8.3 
 
Pre-tax income
$ 0.4 
$ 1.0 
 
Investments Narrative (Details) (MillerCoors, USD $)
In Millions, unless otherwise specified
3 Months Ended
Mar. 31, 2012
Mar. 26, 2011
Dec. 31, 2011
MillerCoors
 
 
 
Schedule of Equity Method Investments [Line Items]
 
 
 
Sales of beer to MillerCoors
$ 4.9 
$ 8.0 
 
Purchases of beer from MillerCoors
2.3 
2.5 
 
Service agreement and other charges to MillerCoors
1.1 
1.4 
 
Service agreement costs from MillerCoors
0.2 
0.2 
 
Net receivables due from MillerCoors
$ 7.0 
 
$ 2.0 
Share-Based Payments Compensation Expense (Details) (USD $)
In Millions, unless otherwise specified
3 Months Ended
Mar. 31, 2012
Mar. 26, 2011
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
 
 
After-tax compensation expense (in dollars)
$ 3.3 
$ 5.9 
Options and SOSARs
 
 
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
 
 
Pre-tax compensation expense (in dollars)
1.8 
2.8 
Tax benefit (in dollars)
(0.5)
(0.8)
After-tax compensation expense (in dollars)
1.3 
2.0 
RSUs and DSUs
 
 
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
 
 
Pre-tax compensation expense (in dollars)
2.0 
2.3 
Tax benefit (in dollars)
(0.6)
(0.5)
After-tax compensation expense (in dollars)
1.4 
1.8 
PUs and PSUs
 
 
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
 
 
Pre-tax compensation expense (in dollars)
1.0 
3.0 
Tax benefit (in dollars)
(0.4)
(0.9)
After-tax compensation expense (in dollars)
$ 0.6 
$ 2.1 
Share-Based Payments Stock Options (Details) (USD $)
In Millions, except Per Share data, unless otherwise specified
3 Months Ended
Mar. 31, 2012
Mar. 26, 2011
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding [Roll Forward]
 
 
Proceeds from Stock Plans
$ 19.7 
$ 4.3 
Options and Sosars [Member]
 
 
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding [Roll Forward]
 
 
Outstanding at the beginning of the period (in shares)
7.1 
 
Granted (in shares)
0.2 
 
Exercised (in shares)
(0.7)
 
Forfeited (in shares)
0 
 
Outstanding at the end of the period (in shares)
6.6 
 
Exercisable (in shares)
5.6 
 
Weighted-average exercise price of shares outstanding, beginning of the period (in dollars per share)
$ 38.69 
 
Weighted-average exercise price of shares granted (in dollars per share)
$ 42.80 
 
Weighted-average exercise price of shares exercised (in dollars per share)
$ 29.80 
 
Weighted-average exercise price of shares forfeited (in dollars per share)
$ 43.53 
 
Weighted-average exercise price of shares outstanding, end of the period (in dollars per share)
$ 39.70 
 
Weighted-average exercise price of shares exercisable (in dollars per share)
$ 39.09 
 
Weighted-average remaining contractual life, outstanding (in years)
4.31 
 
Weighted-average remaining contractual life, outstanding (in years)
4.59 
 
Weighted-average remaining contractual life, exercisable (in years)
3.96 
 
Aggregate intrinsic value of shares outstanding (in dollars)
43.1 
 
Aggregate intrinsic value of shares outstanding (in dollars)
42.8 
 
Aggregate intrinsic value of shares exercisable (in dollars)
41.0 
 
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercises in Period, Total Intrinsic Value
9.4 
1.5 
Tax Benefit from Stock Options Exercised
$ 3.3 
 
Share-Based Payments Non-vested (Details) (USD $)
In Millions, except Per Share data, unless otherwise specified
3 Months Ended
Mar. 31, 2012
Rsus and Dsus [Member]
 
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
 
Non-vested awards outstanding at the beginning of the period (in shares)
0.6 
Granted (in shares)
0.3 
Vested (in shares)
0 
Forfeited (in shares)
0 
Non-vested awards outstanding at the end of the period (in shares)
0.9 
Non-vested, weighted-average grant date fair value at the beginning of the period (in dollars per unit)
$ 43.35 
Granted, weighted-average grant date fair value (in dollars per unit)
$ 42.80 
Vested, weighted-average grant date fair value (in dollars per unit)
$ 43.31 
Forfeited, weighted-average grant date fair value (in dollars per unit)
$ 43.26 
Non-vested, weighted-average grant date fair value at the end of the period (in dollars per unit)
$ 43.19 
PUs [Member]
 
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
 
Non-vested awards outstanding at the beginning of the period (in shares)
2.0 
Granted (in shares)
0.7 
Vested (in shares)
0 
Forfeited (in shares)
(0.1)
Non-vested awards outstanding at the end of the period (in shares)
2.6 
Non-vested, weighted-average grant date fair value at the beginning of the period (in dollars per unit)
$ 11.67 
Granted, weighted-average grant date fair value (in dollars per unit)
$ 14.35 
Vested, weighted-average grant date fair value (in dollars per unit)
$ 0.00 
Forfeited, weighted-average grant date fair value (in dollars per unit)
$ 11.05 
Non-vested, weighted-average grant date fair value at the end of the period (in dollars per unit)
$ 11.03 
Share-Based Payments Weighted Average Assumptions (Details)
3 Months Ended
Mar. 31, 2012
years
Mar. 26, 2011
years
Minimum [Member]
 
 
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
 
 
Volatility, low end of range (as a percent)
25.80% 
25.26% 
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions, Expected Term, Minimum
4.0 
4.0 
Maximum [Member]
 
 
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
 
 
Volitility, high end of range (as a percent)
27.56% 
28.11% 
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions, Expected Term, Maximum
7.7 
7.7 
Options and Sosars [Member]
 
 
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
 
 
Risk-free interest rate (as a percent)
1.56% 
2.55% 
Dividend yield (as a percent)
2.98% 
2.52% 
Weighted-average volatility (as a percent)
25.84% 
26.37% 
Weighted-average fair market value (in dollars per share)
$ 8.18 
$ 9.66 
Share-Based Payments Narrative (Details) (USD $)
In Millions, unless otherwise specified
3 Months Ended
Mar. 31, 2012
years
Mar. 26, 2011
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
 
 
Mark-to-market stock-based compensation (benefit) expense, before tax (in dollars)
 
$ 0.2 
Total unrecognized compensation expense related to non-vested shares from share-based compensation arrangements (in dollars)
$ 34.5 
 
Weighted-average period over which compensation expense is expected to be recognized (in years)
1.6 
 
Class B common stock, non-voting
 
 
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
 
 
Stock approved by Board of Directors and available for issuance (in shares)
3.2 
 
Options and Sosars [Member]
 
 
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
 
 
Granted (in shares)
0.2 
 
Rsus and Dsus [Member]
 
 
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
 
 
Granted (in shares)
0.3 
 
PUs [Member]
 
 
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
 
 
Granted (in shares)
0.7 
 
Special items Summary Special Items (Details) (USD $)
3 Months Ended 12 Months Ended
Mar. 31, 2012
Mar. 26, 2011
Dec. 26, 2009
Restructuring Cost and Reserve [Line Items]
 
 
 
Total special items
$ 1,500,000 
$ 0 
 
Non-income-related Tax Reserves
 
 
10,400,000 
Gain (Loss) Related to Restructuring Reserve Low End of Range
0 
 
 
Gain (Loss) Related to Restructuring Reserve High End of Range
22,300,000 
 
 
Canada |
Restructuring, exit and other related costs associated with the Edmonton and Montreal breweries
 
 
 
Restructuring Cost and Reserve [Line Items]
 
 
 
Total special items
1,600,000 
0 
 
Canada |
Special termination benefits
 
 
 
Restructuring Cost and Reserve [Line Items]
 
 
 
Total special items
500,000 1
2,800,000 1
 
Canada |
Flood insurance reimbursement
 
 
 
Restructuring Cost and Reserve [Line Items]
 
 
 
Total special items
0 2
(600,000)2
 
U.K. |
Restructuring charge
 
 
 
Restructuring Cost and Reserve [Line Items]
 
 
 
Total special items
1,800,000 
300,000 
 
U.K. |
Release of non-income-related tax reserve
 
 
 
Restructuring Cost and Reserve [Line Items]
 
 
 
Total special items
(3,500,000)3
(2,500,000)3
 
Corporate [Member] |
Restructuring charge
 
 
 
Restructuring Cost and Reserve [Line Items]
 
 
 
Total special items
$ 1,100,000 
$ 0 
 
Special items Severance and Other Employee Related (Details) (Severance and other employee- related costs, USD $)
In Millions, unless otherwise specified
3 Months Ended
Mar. 31, 2012
Changes in restructuring accruals [Roll Forward]
 
Beginning balance of restructuring accruals
$ 1.9 
Charges incurred
4.5 
Payments made
(1.1)
Foreign currency and other adjustments
(0.4)
Ending balance of restructuring accruals
4.9 
Canada
 
Changes in restructuring accruals [Roll Forward]
 
Beginning balance of restructuring accruals
0.1 
Charges incurred
1.6 
Payments made
0 
Foreign currency and other adjustments
(0.1)
Ending balance of restructuring accruals
1.6 
U.K.
 
Changes in restructuring accruals [Roll Forward]
 
Beginning balance of restructuring accruals
1.8 
Charges incurred
1.8 
Payments made
(1.1)
Foreign currency and other adjustments
(0.3)
Ending balance of restructuring accruals
2.2 
Corporate [Member]
 
Changes in restructuring accruals [Roll Forward]
 
Beginning balance of restructuring accruals
0 
Charges incurred
1.1 
Payments made
0 
Foreign currency and other adjustments
0 
Ending balance of restructuring accruals
$ 1.1 
Other Income and Expense (Details) (USD $)
In Millions, unless otherwise specified
3 Months Ended
Mar. 31, 2012
Mar. 26, 2011
Other income and expense:
 
 
Other income (expense), net
$ (1.4)
$ (0.7)
Gain (loss) from Foster's swap and related financial instruments
 
 
Other income and expense:
 
 
Other income (expense), net
0 1
0.8 1
Gain (loss) from other foreign exchange and derivative activity
 
 
Other income and expense:
 
 
Other income (expense), net
(1.7)
(0.7)
Environmental reserve
 
 
Other income and expense:
 
 
Other income (expense), net
0 
(0.2)
Other, net
 
 
Other income and expense:
 
 
Other income (expense), net
$ 0.3 
$ (0.6)
Discontinued Operations (Details) (USD $)
In Millions, unless otherwise specified
3 Months Ended
Mar. 31, 2012
Mar. 26, 2011
Dec. 31, 2011
Discontinued Operations and Disposal Groups [Abstract]
 
 
 
Adjustments to indemnity liabilities due to changes in estimates, foreign exchange gains and losses, and accretion expense
$ 0.1 
$ 0.3 
 
Discontinued operations
0.3 
 
0.3 
Disposal Group Including Discontinued Operation, Current, Legal Reserves
$ 4.9 
 
$ 4.8 
Income Tax (Details) (USD $)
In Millions, unless otherwise specified
3 Months Ended
Mar. 31, 2012
Mar. 26, 2011
Dec. 31, 2011
Income Tax
 
 
 
Effective tax rate (as a percent)
18.00% 
16.00% 
 
Uncertain tax benefits
$ 76.3 
 
$ 70.7 
Uncertain tax benefits, change in period
$ 5.6 
 
 
Earnings per Share ("EPS") Basic and Diluted (Details) (USD $)
In Millions, except Per Share data, unless otherwise specified
3 Months Ended
Mar. 31, 2012
Mar. 26, 2011
Amounts attributable to MCBC
 
 
Net income (loss) from continuing operations
$ 79.4 
$ 82.6 
Income (loss) from discontinued operations, net of tax
0.1 
0.3 
Net income (loss) attributable to Molson Coors Brewing Company
$ 79.5 
$ 82.9 
Weighted average shares for basic EPS (in shares)
180.3 
186.9 
Effect of dilutive securities:
 
 
Weighted average shares for diluted EPS (in shares)
181.7 
188.7 
Basic net income (loss) per share:
 
 
Continuing operations attributable to MCBC (in dollars per share)
$ 0.44 
$ 0.44 
Discontinued operations attributable to MCBC (in dollars per share)
$ 0.00 
$ 0.00 
Net income attributable to MCBC (in dollars per share)
$ 0.44 
$ 0.44 
Diluted net income (loss) per share:
 
 
Continuing operations attributable to MCBC (in dollars per share)
$ 0.44 
$ 0.44 
Discontinued operations attributable to MCBC (in dollars per share)
$ 0.00 
$ 0.00 
Net income attributable to MCBC (in dollars per share)
$ 0.44 
$ 0.44 
Dividends declared per share (in dollars per share)
$ 0.32 
$ 0.28 
Options and Sosars [Member]
 
 
Effect of dilutive securities:
 
 
Effect of dilutive securities of Options, SOSAR's, RSU's, PU's, and DSU's
0.8 
1.0 
RSU PU DSU [Member]
 
 
Effect of dilutive securities:
 
 
Effect of dilutive securities of Options, SOSAR's, RSU's, PU's, and DSU's
0.6 
0.8 
Earnings per Share ("EPS") Antidilutive (Details) (USD $)
In Millions, except Per Share data, unless otherwise specified
3 Months Ended
Mar. 31, 2012
Mar. 26, 2011
Jun. 30, 2007
Anti-dilutive securities:
 
 
 
Anti-dilutive security (in shares)
22.6 
21.4 
 
Debt face amount
 
 
$ 575 
Stock price at which impact of net share settlement at conversion will begin to dilute EPS (in dollars per share)
$ 52.79 
 
 
Stock price at which impact of net share settlement under warrants will begin to dilute EPS (in dollars per share)
$ 67.57 
 
 
Stock price at which receipt of MCBC stock under purchased call options would be anti-dilutive, low end of the range (in dollars per share)
$ 52.79 
 
 
Stock price at which receipt of MCBC stock under purchased call options would be anti-dilutive, high end of the range (in dollars per share)
$ 67.57 
 
 
Stock options, SOSARs and RSUs
 
 
 
Anti-dilutive securities:
 
 
 
Anti-dilutive security (in shares)
0.8 1
0.4 1
 
Shares of Class B common stock issuable upon assumed conversion of the 2.5% Convertible Senior Notes
 
 
 
Anti-dilutive securities:
 
 
 
Anti-dilutive security (in shares)
10.9 2
10.5 2
 
Warrants to issue shares of Class B common stock
 
 
 
Anti-dilutive securities:
 
 
 
Anti-dilutive security (in shares)
10.9 2
10.5 2
 
Goodwill and Intangible Assets (Details) (USD $)
In Millions, unless otherwise specified
3 Months Ended
Mar. 31, 2012
Mar. 31, 2012
Canada
Dec. 31, 2011
Canada
Mar. 31, 2012
U.K.
Dec. 31, 2011
U.K.
Mar. 31, 2012
MCI
Dec. 31, 2011
MCI
Mar. 31, 2012
MC Si Hai [Member]
Goodwill activity:
 
 
 
 
 
 
 
 
Balance at beginning of year
$ 1,453.3 
$ 705.0 
$ 689.5 
$ 768.1 
$ 746.1 
$ 18.4 
$ 17.7 
$ 9.6 
Business acquisitions
0 
 
 
 
 
 
 
 
Foreign currency translation
37.8 
 
 
 
 
 
 
 
Historical correction to adjust properties, net
0.4 
 
 
 
 
 
 
 
Balance at end of year
$ 1,491.5 
$ 705.0 
$ 689.5 
$ 768.1 
$ 746.1 
$ 18.4 
$ 17.7 
$ 9.6 
Percentage Of Fair Value Exceeding Carrying Value
 
 
 
 
 
 
 
4.00% 
Goodwill and Intangible Assets Intangible Assets (Details) (USD $)
3 Months Ended 12 Months Ended
Mar. 31, 2012
years
Dec. 31, 2011
years
Details of intangible assets, other than goodwill:
 
 
Total Gross
$ 5,145,900,000 
$ 5,028,700,000 
Total Net
4,682,800,000 
4,586,000,000 
Intangible assets subject to amortization:
 
 
Accumulated amortization
(463,100,000)
(442,700,000)
Intangible assets not subject to amortization:
 
 
Impairment charge associated with Molson brands intangible asset
0 
 
Goodwill, Impaired, Accumulated Impairment Loss
0 
 
Brands
 
 
Intangible assets subject to amortization:
 
 
Useful life - minimum (in years)
3 
3 
Useful life - maximum (in years)
40 
40 
Gross
326,000,000 
316,900,000 
Accumulated amortization
(188,400,000)
(179,000,000)
Net
137,600,000 
137,900,000 
Intangible assets not subject to amortization:
 
 
Indefinite-lived intangible assets
3,399,900,000 
3,322,400,000 
Distribution rights
 
 
Intangible assets subject to amortization:
 
 
Useful life - minimum (in years)
2 
2 
Useful life - maximum (in years)
23 
23 
Gross
350,000,000 
342,000,000 
Accumulated amortization
(243,200,000)
(234,000,000)
Net
106,800,000 
108,000,000 
Patents and technology and distribution channels
 
 
Intangible assets subject to amortization:
 
 
Useful life - minimum (in years)
3 
3 
Useful life - maximum (in years)
10 
10 
Gross
35,000,000 
34,900,000 
Accumulated amortization
(30,600,000)
(28,900,000)
Net
4,400,000 
6,000,000 
Land use rights and other
 
 
Intangible assets subject to amortization:
 
 
Useful life - minimum (in years)
2 
2 
Useful life - maximum (in years)
42 
42 
Gross
6,500,000 
6,500,000 
Accumulated amortization
(900,000)
(800,000)
Net
5,600,000 
5,700,000 
Distribution networks
 
 
Intangible assets not subject to amortization:
 
 
Indefinite-lived intangible assets
1,012,900,000 
990,500,000 
Other, intangible
 
 
Intangible assets not subject to amortization:
 
 
Indefinite-lived intangible assets
$ 15,600,000 
$ 15,500,000 
Goodwill and Intangible Assets Amortization Expense (Details) (USD $)
In Millions, unless otherwise specified
3 Months Ended
Mar. 31, 2012
Mar. 26, 2011
Estimated amortization expense of finite-lived intangible assets
 
 
2012 - remaining
$ 26.3 
 
2013
34.8 
 
2014
34.7 
 
2015
32.1 
 
2016
32.1 
 
Amortization expense of intangible assets
$ 9.3 
$ 9.8 
Debt Table (Details)
In Millions, unless otherwise specified
Mar. 31, 2012
USD ($)
Dec. 31, 2011
USD ($)
Jun. 30, 2007
USD ($)
Mar. 31, 2012
Senior Notes [Member]
$850 million 6.375% Senior Notes due 2012
USD ($)
Dec. 31, 2011
Senior Notes [Member]
$850 million 6.375% Senior Notes due 2012
USD ($)
Mar. 31, 2012
Senior Notes [Member]
Canadian dollar ("CAD") 900 million 5.0% notes due 2015
USD ($)
Dec. 31, 2011
Senior Notes [Member]
Canadian dollar ("CAD") 900 million 5.0% notes due 2015
USD ($)
Mar. 31, 2012
Senior Notes [Member]
$575 million 2.5% convertible Senior Notes due 2013
USD ($)
Dec. 31, 2011
Senior Notes [Member]
$575 million 2.5% convertible Senior Notes due 2013
USD ($)
Jun. 25, 2011
Senior Notes [Member]
$575 million 2.5% convertible Senior Notes due 2013
USD ($)
Mar. 31, 2012
Senior Notes [Member]
CAD 500 million 3.95% Series A notes due 2017
USD ($)
Dec. 31, 2011
Senior Notes [Member]
CAD 500 million 3.95% Series A notes due 2017
USD ($)
Oct. 6, 2010
Senior Notes [Member]
CAD 500 million 3.95% Series A notes due 2017
CAD ($)
Mar. 31, 2012
Convertible Debt [Member]
Fair Value, Inputs, Level 1 [Member]
USD ($)
Dec. 31, 2011
Convertible Debt [Member]
Fair Value, Inputs, Level 1 [Member]
USD ($)
Mar. 31, 2012
Other Debt Obligations [Member]
Fair Value, Inputs, Level 2 [Member]
USD ($)
Dec. 31, 2011
Other Debt Obligations [Member]
Fair Value, Inputs, Level 2 [Member]
USD ($)
Debt Instrument [Line Items]
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Total long-term debt (including current portion) before unamortized discounts and other
 
 
 
$ 44.6 
$ 44.6 
$ 901.2 
$ 881.2 
$ 575.0 1 2
$ 575.0 1 2
 
$ 500.7 
$ 489.6 
 
 
 
 
 
Less: unamortized debt discounts and other
(26.5)2
(30.8)2
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Total long-term debt (including current portion)
1,995.0 
1,959.6 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Less: current portion of long-term debt
(44.6)
(44.7)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Total long-term debt
1,950.4 
1,914.9 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Total fair value
2,126.1 
2,133.6 
 
 
 
 
 
 
 
 
 
 
 
603.2 
608.5 
1,522.9 
1,525.1 
Debt Instrument, Face Amount
 
 
$ 575 
$ 850 
 
$ 900 
 
 
 
$ 575 
$ 500 
 
$ 500 
 
 
 
 
Debt Instrument, Interest Rate, Stated Percentage
 
 
 
6.375% 
 
5.00% 
 
2.50% 
 
 
3.95% 
 
3.95% 
 
 
 
 
[2] During the first quarters of 2012 and 2011, we incurred additional non-cash interest expense of $4.5 million and $4.3 million, respectively. We also incurred interest expense related to the 2.5% convertible coupon rate of $3.7 million during the first quarter of 2012, and $3.6 million during the first quarter of 2011. The combination of non-cash and cash interest resulted in an effective interest rate of 5.91% and 5.97% for the first quarters of 2012 and 2011, respectively. In relation to this issuance, paid in capital in the equity section of our balance sheet includes $103.9 million, ($64.2 million net of tax), representing the equity component of the convertible debt. Further, as of March 31, 2012, and December 31, 2011, $24.4 million and $28.9 million, respectively, of the unamortized debt discount and other balance relates to our $575 million convertible debt. We expect to record additional non-cash interest expense of approximately $14 million in 2012 and $11 million in 2013, thereby increasing the carrying value of the convertible debt to its $575 million face value at maturity in July 2013. The remaining $2.1 million and $1.9 million as of March 31, 2012, and December 31, 2011, respectively, relates to unamortized debt premiums, discounts, and other on the additional debt balances.
Debt Narrative (Details) (USD $)
3 Months Ended
Apr. 3, 2012
Mar. 31, 2012
Dec. 31, 2011
Jun. 30, 2007
Mar. 31, 2012
Senior Notes [Member]
Mar. 26, 2011
Senior Notes [Member]
Mar. 31, 2012
Senior Notes [Member]
$575 million 2.5% convertible Senior Notes due 2013
Mar. 26, 2011
Senior Notes [Member]
$575 million 2.5% convertible Senior Notes due 2013
Dec. 31, 2011
Senior Notes [Member]
$575 million 2.5% convertible Senior Notes due 2013
Jun. 25, 2011
Senior Notes [Member]
$575 million 2.5% convertible Senior Notes due 2013
Mar. 31, 2012
Other Debt Obligations [Member]
$575 million 2.5% convertible Senior Notes due 2013
Dec. 31, 2011
Other Debt Obligations [Member]
$575 million 2.5% convertible Senior Notes due 2013
Mar. 31, 2012
Line of Credit [Member]
Revolving Multicurrency Bank Credit Facility [Member]
Jun. 25, 2011
Line of Credit [Member]
Revolving Multicurrency Bank Credit Facility [Member]
Subnote 1 [Abstract]
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Debt Instrument, Principal Amount, Per Share
 
 
 
 
 
 
 
 
 
$ 1,000 
 
 
 
 
Percentage of Premium over Stock Price of Convertible Debt
 
 
 
 
 
 
 
 
 
25.00% 
 
 
 
 
Debt Instrument, Convertible Conversion Price Per Share
 
 
 
 
 
 
$ 54.76 
 
 
$ 52.79 
 
 
 
 
Debt Instrument, Convertible Number of Equity Instruments, Ratio
 
 
 
 
 
 
18.263 
 
 
18.9441 
 
 
 
 
Subnote 2 [Abstract]
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Interest Expense Debt Amortization
 
 
 
 
4,500,000 
4,300,000 
 
 
 
 
 
 
 
 
Debt Instrument, Interest Rate, Stated Percentage
 
 
 
 
 
 
2.50% 
 
 
 
 
 
 
 
Interest Expense, Debt
 
 
 
 
 
 
3,700,000 
3,600,000 
 
 
 
 
 
 
Debt Instruments, Interest Rate Effective Percentage
 
 
 
 
 
 
5.91% 
5.97% 
 
 
 
 
 
 
Debt Instrument, Convertible, Carrying Amount of Equity Component
 
 
 
 
 
 
103,900,000 
 
 
 
 
 
 
 
Debt Instrument, Convertible Carrying Amount of the Equity Component, Net of Tax
 
 
 
 
 
 
64,200,000 
 
 
 
 
 
 
 
Debt Instrument, Unamortized Discount
 
 
 
 
 
 
24,400,000 
 
28,900,000 
 
2,100,000 
1,900,000 
 
 
Debt Instrument, Face Amount
 
 
 
575,000,000 
 
 
 
 
 
575,000,000 
 
 
 
 
Noncash Interest Expense Due to Amortization of Unamortized Debt Discount in Future Periods Convertible Debt Estimated Range Low
 
 
 
 
 
 
14,000,000 
 
 
 
 
 
 
 
Noncash Interest Expense Due to Amortization of Unamortized Debt Discount in Future Periods Convertible Debt Estimated Range High
 
 
 
 
 
 
11,000,000 
 
 
 
 
 
 
 
Subnote 3 [Abstract]
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Amount of revolving multicurrency bank credit facility that was terminated
 
 
 
 
 
 
 
 
 
 
 
 
 
750,000,000 
Revolving credit facility, maximum borrowing capacity
550,000,000 
 
 
 
 
 
 
 
 
 
 
 
 
400,000,000 
Term of credit facility (in years)
 
 
 
 
 
 
 
 
 
 
 
 
 
4 
Additional capacity for letters of credit
 
 
 
 
 
 
 
 
 
 
 
 
 
100,000,000 
Debt issuance costs capitalized
 
 
 
 
 
 
 
 
 
 
 
 
 
2,200,000 
Line of Credit Facility, Current Borrowing Capacity
 
 
 
 
 
 
 
 
 
 
 
 
0 
 
Short-term borrowings
 
$ 3,600,000 
$ 2,200,000 
 
 
 
 
 
 
 
 
 
 
 
Derivative Instruments and Hedging Activities Narrative (Details)
1 Months Ended 3 Months Ended
Mar. 31, 2012
USD ($)
Dec. 31, 2011
USD ($)
Sep. 30, 2011
Cash Flow Hedging [Member]
Cross currency swaps
USD ($)
Mar. 31, 2012
Cash Flow Hedging [Member]
Cross currency swaps
USD ($)
Mar. 31, 2012
Cash Flow Hedging [Member]
Cross currency swaps
GBP (£)
Apr. 10, 2007
Cash Flow Hedging [Member]
Cross currency swaps
CAD ($)
Apr. 10, 2007
Cash Flow Hedging [Member]
Cross currency swaps
GBP (£)
Mar. 31, 2012
Scenario, Forecast [Member]
USD ($)
Schedule of Trading Securities and Other Trading Assets
 
 
 
 
 
 
 
 
Derivative, Notional Amount
 
 
 
$ 774,000,000 
£ 530,000,000 
$ 1,200,000,000 
£ 530,000,000 
 
Derivatives Percentage Of Derivatives Settled
 
 
25.00% 
 
 
 
 
 
Swap transaction, principal paid
 
 
 
 
132,400,000 
 
 
 
Derivative Liability Outstanding Amount Estinguished
 
 
98,700,000 
110,600,000 
 
 
 
 
Derivative Liability, Fair Value, Net
 
 
 
220,100,000 
 
 
 
 
Credit risk adjustment, accumulated net increase (decrease) to other comprehensive income
1,100,000 
1,100,000 
 
 
 
 
 
 
Unrealized Gain (Loss) on Interest Rate Cash Flow Hedges, Pretax, Accumulated Other Comprehensive Income (Loss)
 
 
 
 
 
 
 
$ 5,800,000 
Maximum Length of Time Hedged in Cash Flow Hedge
 
 
 
 
 
 
 
3 
Derivative Instruments and Hedging Activities Derivative Fair Value (Details) (USD $)
In Millions, unless otherwise specified
Mar. 31, 2012
Dec. 31, 2011
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
 
 
Accumulated Other Comprehensive Income (Loss), Cumulative Changes in Net Gain (Loss) from Cash Flow Hedges, Effect, Net of Tax from Credit Risk Adjustment
$ 1.1 
$ 1.1 
Fair Value, Measurements, Recurring [Member] |
Fair Value, Inputs, Level 2 [Member]
 
 
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
 
 
Derivative, Fair Value, Net
(229.8)
(316.6)
Fair Value, Measurements, Recurring [Member] |
Fair Value, Inputs, Level 2 [Member] |
Currency Swap [Member]
 
 
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
 
 
Derivative Liability, Fair Value, Gross Liability
(220.1)
(311.9)
Fair Value, Measurements, Recurring [Member] |
Fair Value, Inputs, Level 2 [Member] |
Foreign Exchange Forward [Member]
 
 
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
 
 
Derivative Liability, Fair Value, Gross Liability
(4.4)
 
Derivative Asset, Fair Value, Gross Asset
 
2.2 
Fair Value, Measurements, Recurring [Member] |
Fair Value, Inputs, Level 2 [Member] |
Commodity Contract [Member]
 
 
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
 
 
Derivative Liability, Fair Value, Gross Liability
(5.3)
(6.9)
Fair Value, Measurements, Recurring [Member] |
Fair Value, Inputs, Level 3 [Member]
 
 
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
 
 
Derivative, Fair Value, Net
0 
0 
Fair Value, Measurements, Recurring [Member] |
Carrying (Reported) Amount, Fair Value Disclosure [Member] |
Estimate of Fair Value, Fair Value Disclosure [Member]
 
 
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
 
 
Derivative, Fair Value, Net
(229.8)
(316.6)
Fair Value, Measurements, Recurring [Member] |
Carrying (Reported) Amount, Fair Value Disclosure [Member] |
Estimate of Fair Value, Fair Value Disclosure [Member] |
Currency Swap [Member]
 
 
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
 
 
Derivative Liability, Fair Value, Gross Liability
(220.1)
(311.9)
Fair Value, Measurements, Recurring [Member] |
Carrying (Reported) Amount, Fair Value Disclosure [Member] |
Estimate of Fair Value, Fair Value Disclosure [Member] |
Foreign Exchange Forward [Member]
 
 
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
 
 
Derivative Liability, Fair Value, Gross Liability
(4.4)
 
Derivative Asset, Fair Value, Gross Asset
 
2.2 
Fair Value, Measurements, Recurring [Member] |
Carrying (Reported) Amount, Fair Value Disclosure [Member] |
Estimate of Fair Value, Fair Value Disclosure [Member] |
Commodity Contract [Member]
 
 
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
 
 
Derivative Liability, Fair Value, Gross Liability
$ (5.3)
$ (6.9)
Derivative Instruments and Hedging Activities Fair Value Balance Sheet (Details)
In Millions, unless otherwise specified
Mar. 31, 2012
Designated as Hedging Instrument [Member]
USD ($)
Dec. 31, 2011
Designated as Hedging Instrument [Member]
USD ($)
Mar. 31, 2012
Designated as Hedging Instrument [Member]
Cross currency swaps
CAD ($)
Dec. 31, 2011
Designated as Hedging Instrument [Member]
Cross currency swaps
CAD ($)
Mar. 31, 2012
Designated as Hedging Instrument [Member]
Cross currency swaps
Other current assets
USD ($)
Dec. 31, 2011
Designated as Hedging Instrument [Member]
Cross currency swaps
Other current assets
USD ($)
Mar. 31, 2012
Designated as Hedging Instrument [Member]
Cross currency swaps
Other assets
USD ($)
Dec. 31, 2011
Designated as Hedging Instrument [Member]
Cross currency swaps
Other assets
USD ($)
Mar. 31, 2012
Designated as Hedging Instrument [Member]
Cross currency swaps
Current derivative liability
USD ($)
Dec. 31, 2011
Designated as Hedging Instrument [Member]
Cross currency swaps
Current derivative liability
USD ($)
Mar. 31, 2012
Designated as Hedging Instrument [Member]
Cross currency swaps
Long term derivative liability
USD ($)
Dec. 31, 2011
Designated as Hedging Instrument [Member]
Cross currency swaps
Long term derivative liability
USD ($)
Mar. 31, 2012
Designated as Hedging Instrument [Member]
Foreign currency forwards
USD ($)
Dec. 31, 2011
Designated as Hedging Instrument [Member]
Foreign currency forwards
USD ($)
Mar. 31, 2012
Designated as Hedging Instrument [Member]
Foreign currency forwards
Other current assets
USD ($)
Dec. 31, 2011
Designated as Hedging Instrument [Member]
Foreign currency forwards
Other current assets
USD ($)
Mar. 31, 2012
Designated as Hedging Instrument [Member]
Foreign currency forwards
Other assets
USD ($)
Dec. 31, 2011
Designated as Hedging Instrument [Member]
Foreign currency forwards
Other assets
USD ($)
Mar. 31, 2012
Designated as Hedging Instrument [Member]
Foreign currency forwards
Current derivative liability
USD ($)
Dec. 31, 2011
Designated as Hedging Instrument [Member]
Foreign currency forwards
Current derivative liability
USD ($)
Mar. 31, 2012
Designated as Hedging Instrument [Member]
Foreign currency forwards
Long term derivative liability
USD ($)
Dec. 31, 2011
Designated as Hedging Instrument [Member]
Foreign currency forwards
Long term derivative liability
USD ($)
Mar. 31, 2012
Designated as Hedging Instrument [Member]
Commodity Contract [Member]
gigajoules
Dec. 31, 2011
Designated as Hedging Instrument [Member]
Commodity Contract [Member]
gigajoules
Mar. 31, 2012
Designated as Hedging Instrument [Member]
Commodity Contract [Member]
Other current assets
USD ($)
Dec. 31, 2011
Designated as Hedging Instrument [Member]
Commodity Contract [Member]
Other current assets
USD ($)
Mar. 31, 2012
Designated as Hedging Instrument [Member]
Commodity Contract [Member]
Other assets
USD ($)
Dec. 31, 2011
Designated as Hedging Instrument [Member]
Commodity Contract [Member]
Other assets
USD ($)
Mar. 31, 2012
Designated as Hedging Instrument [Member]
Commodity Contract [Member]
Current derivative liability
USD ($)
Dec. 31, 2011
Designated as Hedging Instrument [Member]
Commodity Contract [Member]
Current derivative liability
USD ($)
Mar. 31, 2012
Designated as Hedging Instrument [Member]
Commodity Contract [Member]
Long term derivative liability
USD ($)
Dec. 31, 2011
Designated as Hedging Instrument [Member]
Commodity Contract [Member]
Long term derivative liability
USD ($)
Mar. 31, 2012
Not Designated as Hedging Instrument [Member]
USD ($)
Dec. 31, 2011
Not Designated as Hedging Instrument [Member]
USD ($)
Mar. 31, 2012
Not Designated as Hedging Instrument [Member]
Aluminum [Member]
t
Dec. 31, 2011
Not Designated as Hedging Instrument [Member]
Aluminum [Member]
t
Mar. 31, 2012
Not Designated as Hedging Instrument [Member]
Aluminum [Member]
Other current assets
USD ($)
Dec. 31, 2011
Not Designated as Hedging Instrument [Member]
Aluminum [Member]
Other current assets
USD ($)
Mar. 31, 2012
Not Designated as Hedging Instrument [Member]
Aluminum [Member]
Other assets
USD ($)
Dec. 31, 2011
Not Designated as Hedging Instrument [Member]
Aluminum [Member]
Other assets
USD ($)
Mar. 31, 2012
Not Designated as Hedging Instrument [Member]
Aluminum [Member]
Current derivative liability
USD ($)
Dec. 31, 2011
Not Designated as Hedging Instrument [Member]
Aluminum [Member]
Current derivative liability
USD ($)
Mar. 31, 2012
Not Designated as Hedging Instrument [Member]
Aluminum [Member]
Long term derivative liability
USD ($)
Dec. 31, 2011
Not Designated as Hedging Instrument [Member]
Aluminum [Member]
Long term derivative liability
USD ($)
Mar. 31, 2012
Not Designated as Hedging Instrument [Member]
Deisel [Member]
t
Dec. 31, 2011
Not Designated as Hedging Instrument [Member]
Deisel [Member]
t
Mar. 31, 2012
Not Designated as Hedging Instrument [Member]
Deisel [Member]
Other current assets
USD ($)
Dec. 31, 2011
Not Designated as Hedging Instrument [Member]
Deisel [Member]
Other current assets
USD ($)
Mar. 31, 2012
Not Designated as Hedging Instrument [Member]
Deisel [Member]
Other assets
USD ($)
Mar. 31, 2012
Not Designated as Hedging Instrument [Member]
Deisel [Member]
Current derivative liability
USD ($)
Dec. 31, 2011
Not Designated as Hedging Instrument [Member]
Deisel [Member]
Current derivative liability
USD ($)
Mar. 31, 2012
Not Designated as Hedging Instrument [Member]
Deisel [Member]
Long term derivative liability
USD ($)
Derivatives designated as hedging instruments:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Notional Amounts
 
 
$ 601.3 
$ 901.3 
 
 
 
 
 
 
 
 
$ 440.2 
$ 464.6 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Notional Amount of Derivatives Nonmonetary Designated as Hedging Instrument, Energy
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
1,300,000 
2,200,000 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Derivative asset, fair value, designated as hedging instrument
4.2 
3.4 
 
 
0 
0 
0 
0 
 
 
 
 
 
 
1.5 
0 
2.1 
3.4 
 
 
 
 
 
 
0.5 
0 
0.1 
0 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Derivative fair value, liability
(229.8)
(315.5)
 
 
 
 
 
 
0 
(103.2)
(220.1)
(208.7)
 
 
 
 
 
 
(6.0)
(1.3)
(2.0)
0 
 
 
 
 
 
 
(1.4)
(1.8)
(0.3)
(0.5)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Derivatives not designated as hedging instruments:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Notional amount of derivatives not designated as hedging instrument In Metric Tonnes
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
7,750.0 
8,825.0 
 
 
 
 
 
 
 
 
8,050.0 
9,668.0 
 
 
 
 
 
 
Derivative Instruments Not Designated as Hedging Instruments, Asset, at Fair Value
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
0 
0.1 
 
 
0 
0 
0 
0 
 
 
 
 
 
 
0 
0.1 
0 
 
 
 
Derivative Instruments Not Designated as Hedging Instruments, Liability, at Fair Value
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
$ (4.2)
$ (4.6)
 
 
 
 
 
 
$ (3.4)
$ (1.3)
$ 0 
$ (3.3)
 
 
 
 
 
$ (0.6)
$ 0 
$ (0.2)
Derivative Instruments and Hedging Activities AOCI (Details) (USD $)
In Millions, unless otherwise specified
3 Months Ended
Mar. 31, 2012
Accumulated Other Comprehensive Income (Loss) beginning balance
$ 1.7 
Unrealized (loss) gain on derivative instruments
(27.2)
Reclassification adjustment on derivative instruments
2.4 
Tax benefit (expense)
8.8 
Accumulated Other Comprehensive Income (Loss) ending balance
$ (14.3)
Derivative Instruments and Hedging Activities Cash Flow Hedges (Details) (USD $)
In Millions, unless otherwise specified
3 Months Ended
Mar. 31, 2012
Mar. 26, 2011
Derivative Instruments, Gain (Loss) [Line Items]
 
 
Unrealized (loss) gain on derivative instruments, net of tax
$ (27.2)
 
Derivative Instruments, Gain (Loss) Reclassified from Accumulated OCI into Income, Effective Portion, Net
2.4 
 
Cash Flow Hedging [Member]
 
 
Derivative Instruments, Gain (Loss) [Line Items]
 
 
Unrealized (loss) gain on derivative instruments, net of tax
6.7 
(7.6)
Derivative Instruments, Gain (Loss) Reclassified from Accumulated OCI into Income, Effective Portion, Net
(2.4)
(31.1)
Derivative Instruments, Gain (Loss) Recognized in Income, Ineffective Portion and Amount Excluded from Effectiveness Testing, Net
0 
0 
Cash Flow Hedging [Member] |
Interest Rate Swap [Member]
 
 
Derivative Instruments, Gain (Loss) [Line Items]
 
 
Unrealized (loss) gain on derivative instruments, net of tax
0 
0.3 
Cash Flow Hedging [Member] |
Interest Rate Swap [Member] |
Interest Expense [Member]
 
 
Derivative Instruments, Gain (Loss) [Line Items]
 
 
Derivative Instruments, Gain (Loss) Reclassified from Accumulated OCI into Income, Effective Portion, Net
(0.4)
(0.3)
Derivative Instruments, Gain (Loss) Recognized in Income, Ineffective Portion and Amount Excluded from Effectiveness Testing, Net
0 
0 
Cash Flow Hedging [Member] |
Currency Swap [Member]
 
 
Derivative Instruments, Gain (Loss) [Line Items]
 
 
Unrealized (loss) gain on derivative instruments, net of tax
 
(3.1)1
Cash Flow Hedging [Member] |
Currency Swap [Member] |
Other Income Expense [Member]
 
 
Derivative Instruments, Gain (Loss) [Line Items]
 
 
Derivative Instruments, Gain (Loss) Reclassified from Accumulated OCI into Income, Effective Portion, Net
 
(23.5)
Derivative Instruments, Gain (Loss) Recognized in Income, Ineffective Portion and Amount Excluded from Effectiveness Testing, Net
 
0 
Cash Flow Hedging [Member] |
Currency Swap [Member] |
Interest Expense [Member]
 
 
Derivative Instruments, Gain (Loss) [Line Items]
 
 
Derivative Instruments, Gain (Loss) Reclassified from Accumulated OCI into Income, Effective Portion, Net
 
(3.4)
Derivative Instruments, Gain (Loss) Recognized in Income, Ineffective Portion and Amount Excluded from Effectiveness Testing, Net
 
0 
Cash Flow Hedging [Member] |
Foreign Exchange Forward [Member]
 
 
Derivative Instruments, Gain (Loss) [Line Items]
 
 
Unrealized (loss) gain on derivative instruments, net of tax
8.0 
(8.7)
Cash Flow Hedging [Member] |
Foreign Exchange Forward [Member] |
Other Income Expense [Member]
 
 
Derivative Instruments, Gain (Loss) [Line Items]
 
 
Derivative Instruments, Gain (Loss) Reclassified from Accumulated OCI into Income, Effective Portion, Net
(0.6)
(1.7)
Derivative Instruments, Gain (Loss) Recognized in Income, Ineffective Portion and Amount Excluded from Effectiveness Testing, Net
0 
0 
Cash Flow Hedging [Member] |
Foreign Exchange Forward [Member] |
Cost of Sales [Member]
 
 
Derivative Instruments, Gain (Loss) [Line Items]
 
 
Derivative Instruments, Gain (Loss) Reclassified from Accumulated OCI into Income, Effective Portion, Net
(1.1)
(2.4)
Derivative Instruments, Gain (Loss) Recognized in Income, Ineffective Portion and Amount Excluded from Effectiveness Testing, Net
0 
0 
Cash Flow Hedging [Member] |
Commodity Contract [Member]
 
 
Derivative Instruments, Gain (Loss) [Line Items]
 
 
Unrealized (loss) gain on derivative instruments, net of tax
(1.3)
3.9 
Cash Flow Hedging [Member] |
Commodity Contract [Member] |
Cost of Sales [Member]
 
 
Derivative Instruments, Gain (Loss) [Line Items]
 
 
Derivative Instruments, Gain (Loss) Reclassified from Accumulated OCI into Income, Effective Portion, Net
(0.3)
0.2 
Derivative Instruments, Gain (Loss) Recognized in Income, Ineffective Portion and Amount Excluded from Effectiveness Testing, Net
0 
0 
Net Investment Hedging [Member]
 
 
Derivative Instruments, Gain (Loss) [Line Items]
 
 
Unrealized (loss) gain on derivative instruments, net of tax
20.5 
 
Derivative Instruments, Gain (Loss) Reclassified from Accumulated OCI into Income, Effective Portion, Net
0 
 
Derivative Instruments, Gain (Loss) Recognized in Income, Ineffective Portion and Amount Excluded from Effectiveness Testing, Net
0 
 
Net Investment Hedging [Member] |
Currency Swap [Member]
 
 
Derivative Instruments, Gain (Loss) [Line Items]
 
 
Unrealized (loss) gain on derivative instruments, net of tax
20.5 
 
Net Investment Hedging [Member] |
Currency Swap [Member] |
Other Income Expense [Member]
 
 
Derivative Instruments, Gain (Loss) [Line Items]
 
 
Derivative Instruments, Gain (Loss) Reclassified from Accumulated OCI into Income, Effective Portion, Net
0 
 
Derivative Instruments, Gain (Loss) Recognized in Income, Ineffective Portion and Amount Excluded from Effectiveness Testing, Net
$ 0 
 
Derivative Instruments and Hedging Activities Other Derivatives(Details) (Not Designated as Hedging Instrument [Member], USD $)
In Millions, unless otherwise specified
3 Months Ended
Mar. 31, 2012
Mar. 26, 2011
Other income (expense), net.
 
 
Gain (Loss) on Derivative Instruments:
 
 
Amount of Gain (Loss) Recognized in Income on Derivative
$ 0.1 
$ 0.8 
Commodity swaps |
Cost of goods sold
 
 
Gain (Loss) on Derivative Instruments:
 
 
Amount of Gain (Loss) Recognized in Income on Derivative
0.1 
 
Cash settled total return swap |
Other income (expense), net.
 
 
Gain (Loss) on Derivative Instruments:
 
 
Amount of Gain (Loss) Recognized in Income on Derivative
 
(0.6)
Option contracts |
Other income (expense), net.
 
 
Gain (Loss) on Derivative Instruments:
 
 
Amount of Gain (Loss) Recognized in Income on Derivative
 
1.5 
Foreign currency forwards |
Other income (expense), net.
 
 
Gain (Loss) on Derivative Instruments:
 
 
Amount of Gain (Loss) Recognized in Income on Derivative
 
$ (0.1)
Pension and Other Postretirement Benefits (Details) (USD $)
In Millions, unless otherwise specified
3 Months Ended
Mar. 31, 2012
Mar. 26, 2011
Net periodic pension costs under retirement plans and other postretirement benefits:
 
 
Expected total defined benefit plan employer contributions for fiscal year 2011
$ 60.0 
 
Defined Benefit Plans
 
 
Net periodic pension costs under retirement plans and other postretirement benefits:
 
 
Service cost - benefits earned during the period
4.2 
4.7 
Interest cost on projected benefit obligation
41.1 
45.1 
Expected return on plan assets
(43.5)
(49.8)
Amortization of prior service cost (gain)
0.2 
0.2 
Amortization of net actuarial loss (gain)
9.8 
5.0 
Less expected participant contributions
0.4 
(0.4)
Curtailment loss
 
0 
Net periodic pension and postretirement benefit cost
11.4 
4.8 
Canada Defined Benefit Plans
 
 
Net periodic pension costs under retirement plans and other postretirement benefits:
 
 
Service cost - benefits earned during the period
4.1 
4.7 
Interest cost on projected benefit obligation
16.6 
18.1 
Expected return on plan assets
(15.3)
(18.6)
Amortization of prior service cost (gain)
0.2 
0.2 
Amortization of net actuarial loss (gain)
5.4 
2.3 
Less expected participant contributions
0.4 
(0.4)
Curtailment loss
 
0 
Net periodic pension and postretirement benefit cost
10.6 
6.3 
Contributions paid to defined benefit plans
7.5 
 
U.S. Benefit Plans
 
 
Net periodic pension costs under retirement plans and other postretirement benefits:
 
 
Interest cost on projected benefit obligation
0 
0.1 
Net periodic pension and postretirement benefit cost
0 
0.1 
U.K. Defined Benefit Plans
 
 
Net periodic pension costs under retirement plans and other postretirement benefits:
 
 
Interest cost on projected benefit obligation
24.5 
26.9 
Expected return on plan assets
(28.2)
(31.2)
Amortization of net actuarial loss (gain)
4.4 
2.7 
Net periodic pension and postretirement benefit cost
0.7 
(1.6)
MCI
 
 
Net periodic pension costs under retirement plans and other postretirement benefits:
 
 
Service cost - benefits earned during the period
0.1 
 
Net periodic pension and postretirement benefit cost
0.1 
 
Contributions paid to defined benefit plans
0.4 
 
Other Postretirement Benefits
 
 
Net periodic pension costs under retirement plans and other postretirement benefits:
 
 
Service cost - benefits earned during the period
0.7 
0.6 
Interest cost on projected benefit obligation
2.0 
1.9 
Amortization of prior service cost (gain)
(0.9)
(0.9)
Amortization of net actuarial loss (gain)
(0.1)
(0.9)
Net periodic pension and postretirement benefit cost
1.7 
0.7 
Canada Other Postretirement Benefits
 
 
Net periodic pension costs under retirement plans and other postretirement benefits:
 
 
Service cost - benefits earned during the period
0.6 
0.5 
Interest cost on projected benefit obligation
2.0 
1.9 
Amortization of prior service cost (gain)
(0.9)
(0.9)
Amortization of net actuarial loss (gain)
(0.1)
(0.9)
Net periodic pension and postretirement benefit cost
1.6 
0.6 
U.S. Other Postretirement Benefits
 
 
Net periodic pension costs under retirement plans and other postretirement benefits:
 
 
Service cost - benefits earned during the period
0.1 
0.1 
Net periodic pension and postretirement benefit cost
$ 0.1 
$ 0.1 
Commitments and Contingencies Loss Contingency (Details)
1 Months Ended 3 Months Ended 1 Months Ended 12 Months Ended 3 Months Ended 3 Months Ended 1 Months Ended 3 Months Ended 12 Months Ended
Dec. 31, 2009
CAD ($)
Jun. 25, 2011
USD ($)
Mar. 31, 2012
USD ($)
Dec. 31, 2011
USD ($)
Jun. 30, 2007
USD ($)
Sep. 30, 2011
BRI
CAD ($)
Jun. 25, 2011
BRI
CAD ($)
Dec. 31, 2011
RMMC [Member]
USD ($)
Mar. 31, 2012
RMMC [Member]
USD ($)
Dec. 25, 2010
RMMC [Member]
USD ($)
Jun. 26, 2010
Kaiser purchased tax credits indemnity reserve, category one
USD ($)
Dec. 26, 2009
Kaiser purchased tax credits indemnity reserve, category one
USD ($)
Mar. 31, 2012
Kaiser purchased tax credits indemnity reserve, category two
USD ($)
Mar. 31, 2012
Kaiser purchased tax credits indemnity reserve
USD ($)
categories
Mar. 31, 2012
Kaiser tax, civil and labor indemnity reserve
USD ($)
Oct. 31, 2010
Litigation on product distribution in Brazil
USD ($)
Mar. 31, 2012
Litigation on product distribution in Brazil
USD ($)
Mar. 27, 2010
Litigation on product distribution in Brazil
USD ($)
Sep. 26, 2009
Litigation on product distribution in Brazil
USD ($)
Dec. 31, 2000
Litigation on product distribution in Brazil
USD ($)
Dec. 31, 1990
Environmental matters, Lowry
USD ($)
Mar. 31, 2012
Environmental matters, Lowry
USD ($)
Mar. 31, 2012
Environmental matters, Cooper Drum site
USD ($)
Oct. 31, 2006
Environmental matters, Cooper Drum site
Mar. 31, 2012
Environmental matters, Rutherford and Berrys Creek site
USD ($)
Loss Contingencies [Line Items]
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Loss contingency, number of categories
 
 
 
 
 
 
 
 
 
 
 
 
 
2 
 
 
 
 
 
 
 
 
 
 
 
Cash Settlement
 
 
 
 
 
 
 
 
 
 
$ 96,000,000 
 
 
 
 
 
$ 7,100,000 
 
 
 
 
 
 
 
 
Maximum potential claims eliminated
 
 
 
 
 
 
 
 
 
 
284,500,000 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Indemnity liability, current
 
 
 
 
 
 
 
 
 
 
 
131,200,000 
 
8,800,000 
 
 
 
 
 
 
 
 
 
 
 
Maximum potential claims
 
 
 
 
 
 
 
 
 
 
 
 
242,200,000 
 
68,000,000 
 
 
 
 
 
 
 
 
 
 
Total estimate of indemnity liability
 
 
 
 
 
 
 
 
 
 
 
 
 
21,900,000 
 
 
 
 
 
 
 
 
 
 
 
Indemnity liability, noncurrent
 
 
 
 
 
 
 
 
 
 
 
 
 
13,100,000 
9,300,000 
 
 
 
 
 
 
 
 
 
 
Equity interest sold (as a percent)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
68.00% 
 
 
 
 
 
 
 
 
 
 
Guarantees
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Debt face amount
 
 
 
 
575,000,000 
 
200,000,000 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Gain on liability reduction recorded in special items
 
2,000,000 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Payments of Capital Distribution
 
 
 
 
 
93,600,000 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Guarantor Obligations, Maximum Exposure, Undiscounted
 
 
 
 
 
 
 
 
9,100,000 
29,600,000 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Letter of Credit Provided to Entity
10,000,000 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Short-term Debt, Refinanced, Amount
 
 
 
 
 
 
 
16,000,000 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Guarantees related to banks and other third parties noncurrent portion
 
 
6,200,000 
6,100,000 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Litigation and Other Disputes
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Litigation, vacated court judgment
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
42,000,000 
 
42,000,000 
42,000,000 
 
 
 
 
 
 
Estimated Litigation Liability
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
4,900,000 
 
 
 
 
 
 
 
 
Settlement agreement, payment for termination of distribution agreement
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
150,000 
 
 
 
 
 
Environmental
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Environmental remediation expense, pretax charge
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
30,000,000 
 
 
 
 
Environmental remediation threshold, assumed remediation cost
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
120,000,000 
 
 
 
Inflation rate assumption, future costs (as a percent)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
2.50% 
 
 
 
Risk free rate of return assumption (as a percent)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
1.69% 
 
 
 
Site contingency, accrual, present value
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
4,300,000 
 
 
 
Site contingency, accrual, undiscounted amount
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
7,800,000 
 
 
 
Number of PRP parties
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
60 
 
Accrued estimated liabilities, environmental
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
$ 6,200,000 
$ 200,000 
 
$ 3,800,000 
Commitments and Contingencies Obligation Reserves (Details) (USD $)
In Millions, unless otherwise specified
3 Months Ended
Mar. 31, 2012
Kaiser Purchased Tax Credits Indemnity Reserve [Member]
 
Loss Contingencies [Line Items]
 
Loss Contingency Accrual, at Carrying Value Beginning Balance
$ 21.5 
Loss Contingency, Accrual Carrying Value, Foreign Exchange Impact
0.4 
Loss Contingency Accrual, at Carrying Value Ending Balance
21.9 
Kaiser Tax, Civil and Labor Indemnity Reserve [Member]
 
Loss Contingencies [Line Items]
 
Loss Contingency Accrual, at Carrying Value Beginning Balance
9.1 
Loss Contingency, Accrual Carrying Value, Foreign Exchange Impact
0.2 
Loss Contingency Accrual, at Carrying Value Ending Balance
9.3 
Kaiser Total indemnity reserves
 
Loss Contingencies [Line Items]
 
Loss Contingency Accrual, at Carrying Value Beginning Balance
30.6 
Loss Contingency, Accrual Carrying Value, Foreign Exchange Impact
0.6 
Loss Contingency Accrual, at Carrying Value Ending Balance
$ 31.2 
Supplemental Guarantor Information Supplemental (Details)
In Millions, unless otherwise specified
3 Months Ended 3 Months Ended 3 Months Ended
Mar. 31, 2012
USD ($)
Mar. 26, 2011
USD ($)
Apr. 3, 2012
USD ($)
Jun. 30, 2007
USD ($)
Apr. 3, 2012
Term Loan Agreement [Member]
USD ($)
Apr. 3, 2012
Revolving Credit [Member]
USD ($)
Mar. 31, 2012
Scenario, Previously Reported [Member]
USD ($)
Mar. 31, 2012
Scenario, Adjustment [Member]
USD ($)
Mar. 31, 2012
Issuer 2002 [Member]
USD ($)
Mar. 26, 2011
Issuer 2002 [Member]
USD ($)
Mar. 31, 2012
Parent Company [Member]
USD ($)
Mar. 26, 2011
Parent Company [Member]
USD ($)
Sep. 22, 2005
Issuer 2005 And Issuer 2010 [Member]
Senior Notes [Member]
USD ($)
Mar. 31, 2012
$850 million 6.375% Senior Notes due 2012
Senior Notes [Member]
USD ($)
Dec. 31, 2011
$850 million 6.375% Senior Notes due 2012
Senior Notes [Member]
USD ($)
May 7, 2002
$850 million 6.375% Senior Notes due 2012
Issuer 2002 [Member]
Senior Notes [Member]
USD ($)
Mar. 31, 2012
$575 million 2.5% convertible Senior Notes due 2013
Senior Notes [Member]
USD ($)
Dec. 31, 2011
$575 million 2.5% convertible Senior Notes due 2013
Senior Notes [Member]
USD ($)
Jun. 25, 2011
$575 million 2.5% convertible Senior Notes due 2013
Senior Notes [Member]
USD ($)
Jun. 15, 2007
$575 million 2.5% convertible Senior Notes due 2013
Parent Company [Member]
Senior Notes [Member]
USD ($)
May 3, 2012
Senior Notes Due 2017 $300M 2.0% [Member]
Parent Company [Member]
Senior Notes [Member]
USD ($)
May 3, 2012
Senior Notes Due 2022 $500M 3.5% [Member]
Parent Company [Member]
Senior Notes [Member]
USD ($)
May 3, 2012
Senior Notes Due 2042 $1.1B 5.0% [Member]
Parent Company [Member]
Senior Notes [Member]
USD ($)
Mar. 26, 2011
Senior Notes 4.85 Percent and 5 Percent due 2010 and 2015 [Member]
Issuer 2005 And Issuer 2010 [Member]
Senior Notes [Member]
USD ($)
Sep. 22, 2005
Senior Notes 4.85 Percent and 5 Percent due 2010 and 2015 [Member]
Issuer 2005 And Issuer 2010 [Member]
Senior Notes [Member]
USD ($)
Mar. 31, 2012
CAD 500 million 3.95% Series A notes due 2017
Senior Notes [Member]
USD ($)
Dec. 31, 2011
CAD 500 million 3.95% Series A notes due 2017
Senior Notes [Member]
USD ($)
Oct. 6, 2010
CAD 500 million 3.95% Series A notes due 2017
Senior Notes [Member]
CAD ($)
Sep. 22, 2005
CAD 500 million 3.95% Series A notes due 2017
Issuer 2005 And Issuer 2010 [Member]
Senior Notes [Member]
CAD ($)
Jun. 25, 2011
Revolving Multicurrency Bank Credit Facility [Member]
Line of Credit [Member]
USD ($)
Debt Instrument [Line Items]
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Debt face amount
 
 
 
$ 575 
$ 300 
$ 300 
 
 
 
 
 
 
$ 1,100 
$ 850 
 
$ 850 
 
 
$ 575 
$ 575 
$ 300 
$ 500 
$ 1,100 
 
$ 300 
$ 500 
 
$ 500 
$ 900 
 
Debt Instrument, Interest Rate, Stated Percentage
 
 
 
 
 
 
 
 
 
 
 
 
 
6.375% 
 
6.375% 
2.50% 
 
 
2.50% 
2.00% 
3.50% 
5.00% 
 
4.85% 
3.95% 
 
3.95% 
5.00% 
 
Repayments of Long-term Debt, Long-term Capital Lease Obligations, and Capital Securities
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
300 
 
 
 
 
 
 
Total long-term debt (including current portion) before unamortized discounts and other
 
 
 
 
 
 
 
 
 
 
 
 
 
44.6 
44.6 
 
575.0 1 2
575.0 1 2
 
 
 
 
 
 
 
500.7 
489.6 
 
 
 
Line of Credit Facility, Maximum Borrowing Capacity
 
 
550 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
400 
Other income (expense), net
$ (1.4)
$ (0.7)
 
 
 
 
$ 102.8 
$ (1.2)
$ (12.2)
$ (1.2)
$ 12.0 
$ 1.4 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
[2] During the first quarters of 2012 and 2011, we incurred additional non-cash interest expense of $4.5 million and $4.3 million, respectively. We also incurred interest expense related to the 2.5% convertible coupon rate of $3.7 million during the first quarter of 2012, and $3.6 million during the first quarter of 2011. The combination of non-cash and cash interest resulted in an effective interest rate of 5.91% and 5.97% for the first quarters of 2012 and 2011, respectively. In relation to this issuance, paid in capital in the equity section of our balance sheet includes $103.9 million, ($64.2 million net of tax), representing the equity component of the convertible debt. Further, as of March 31, 2012, and December 31, 2011, $24.4 million and $28.9 million, respectively, of the unamortized debt discount and other balance relates to our $575 million convertible debt. We expect to record additional non-cash interest expense of approximately $14 million in 2012 and $11 million in 2013, thereby increasing the carrying value of the convertible debt to its $575 million face value at maturity in July 2013. The remaining $2.1 million and $1.9 million as of March 31, 2012, and December 31, 2011, respectively, relates to unamortized debt premiums, discounts, and other on the additional debt balances.
Supplemental Guarantor Information Income statement (Details) (USD $)
In Millions, unless otherwise specified
3 Months Ended
Mar. 31, 2012
Mar. 26, 2011
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
 
 
Sales
$ 1,008.1 
$ 997.3 
Excise taxes
(316.7)
(306.9)
Net sales
691.4 
690.4 
Cost of goods sold
(438.8)
(427.2)
Gross profit
252.6 
263.2 
Marketing, general and administrative expenses
(248.2)
(238.4)
Special items, net
(1.5)
0 
Equity income in MillerCoors
118.9 
101.2 
Operating income (loss)
121.8 
126.0 
Interest income (expense), net
(23.8)
(26.8)
Other income (expense), net
(1.4)
(0.7)
Income (loss) from continuing operations before income taxes
96.6 
98.5 
Income tax benefit (expense)
(17.3)
(16.1)
Net Income (loss) from continuing operations
79.3 
82.4 
Income (loss) from discontinued operations, net of tax
0.1 
0.3 
Net income (loss) including noncontrolling interests
79.4 
82.7 
Less: Net (income) loss attributable to noncontrolling interests
0.1 
0.2 
Net income (loss) attributable to MCBC
79.5 
82.9 
Comprehensive Income (Loss), Net of Tax, Attributable to Parent
190.6 
253.4 
Parent Company [Member]
 
 
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
 
 
Sales
5.5 
5.8 
Net sales
5.5 
5.8 
Gross profit
5.5 
5.8 
Marketing, general and administrative expenses
(34.5)
(32.7)
Special items, net
(1.1)
 
Equity income (loss) in subsidiaries
85.0 
185.9 
Operating income (loss)
54.9 
159.0 
Interest income (expense), net
 
(8.4)
Other income (expense), net
12.0 
1.4 
Income (loss) from continuing operations before income taxes
66.9 
152.0 
Income tax benefit (expense)
12.6 
(69.1)
Net Income (loss) from continuing operations
79.5 
82.9 
Net income (loss) including noncontrolling interests
79.5 
82.9 
Net income (loss) attributable to MCBC
79.5 
82.9 
Comprehensive Income (Loss), Net of Tax, Attributable to Parent
56.1 
113.1 
Issuer 2002 [Member]
 
 
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
 
 
Sales
43.3 
43.2 
Net sales
43.3 
43.2 
Cost of goods sold
(7.5)
(10.9)
Gross profit
35.8 
32.3 
Marketing, general and administrative expenses
(9.1)
(7.6)
Equity income (loss) in subsidiaries
23.9 
1.6 
Operating income (loss)
50.6 
26.3 
Interest income (expense), net
(9.2)
11.9 
Other income (expense), net
(12.2)
(1.2)
Income (loss) from continuing operations before income taxes
29.2 
37.0 
Income tax benefit (expense)
(31.9)
47.8 
Net Income (loss) from continuing operations
(2.7)
84.8 
Net income (loss) including noncontrolling interests
(2.7)
84.8 
Net income (loss) attributable to MCBC
(2.7)
84.8 
Comprehensive Income (Loss), Net of Tax, Attributable to Parent
(16.2)
81.6 
Subsidiary Guarantors
 
 
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
 
 
Sales
519.2 
511.8 
Excise taxes
(123.2)
(123.6)
Net sales
396.0 
388.2 
Cost of goods sold
(240.9)
(224.5)
Gross profit
155.1 
163.7 
Marketing, general and administrative expenses
(112.2)
(110.6)
Special items, net
(2.1)
(2.1)
Equity income (loss) in subsidiaries
(139.1)
(148.8)
Equity income in MillerCoors
118.9 
101.2 
Operating income (loss)
20.6 
3.4 
Interest income (expense), net
97.5 
80.3 
Other income (expense), net
0 
(0.1)
Income (loss) from continuing operations before income taxes
118.1 
83.6 
Income tax benefit (expense)
(1.5)
7.6 
Net Income (loss) from continuing operations
116.6 
91.2 
Net income (loss) including noncontrolling interests
116.6 
91.2 
Net income (loss) attributable to MCBC
116.6 
91.2 
Comprehensive Income (Loss), Net of Tax, Attributable to Parent
316.8 
286.5 
Subsidiary Non-Guarantors
 
 
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
 
 
Sales
489.2 
484.3 
Excise taxes
(193.5)
(183.3)
Net sales
295.7 
301.0 
Cost of goods sold
(231.8)
(233.6)
Gross profit
63.9 
67.4 
Marketing, general and administrative expenses
(100.1)
(93.5)
Special items, net
1.7 
2.1 
Equity income (loss) in subsidiaries
52.6 
54.5 
Operating income (loss)
18.1 
30.5 
Interest income (expense), net
(112.1)
(110.6)
Other income (expense), net
(1.2)
(0.8)
Income (loss) from continuing operations before income taxes
(95.2)
(80.9)
Income tax benefit (expense)
3.5 
(2.4)
Net Income (loss) from continuing operations
(91.7)
(83.3)
Income (loss) from discontinued operations, net of tax
0.1 
0.3 
Net income (loss) including noncontrolling interests
(91.6)
(83.0)
Less: Net (income) loss attributable to noncontrolling interests
0.1 
0.2 
Net income (loss) attributable to MCBC
(91.5)
(82.8)
Comprehensive Income (Loss), Net of Tax, Attributable to Parent
(143.7)
(134.6)
Eliminations
 
 
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
 
 
Sales
(49.1)
(47.8)
Net sales
(49.1)
(47.8)
Cost of goods sold
41.4 
41.8 
Gross profit
(7.7)
(6.0)
Marketing, general and administrative expenses
7.7 
6.0 
Equity income (loss) in subsidiaries
(22.4)
(93.2)
Operating income (loss)
(22.4)
(93.2)
Income (loss) from continuing operations before income taxes
(22.4)
(93.2)
Net Income (loss) from continuing operations
(22.4)
(93.2)
Net income (loss) including noncontrolling interests
(22.4)
(93.2)
Net income (loss) attributable to MCBC
(22.4)
(93.2)
Comprehensive Income (Loss), Net of Tax, Attributable to Parent
(22.4)
(93.2)
Consolidated [Member]
 
 
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
 
 
Sales
1,008.1 
997.3 
Excise taxes
(316.7)
(306.9)
Net sales
691.4 
690.4 
Cost of goods sold
(438.8)
(427.2)
Gross profit
252.6 
263.2 
Marketing, general and administrative expenses
(248.2)
(238.4)
Special items, net
(1.5)
0 
Equity income in MillerCoors
118.9 
101.2 
Operating income (loss)
121.8 
126.0 
Interest income (expense), net
(23.8)
(26.8)
Other income (expense), net
(1.4)
(0.7)
Income (loss) from continuing operations before income taxes
96.6 
98.5 
Income tax benefit (expense)
(17.3)
(16.1)
Net Income (loss) from continuing operations
79.3 
82.4 
Income (loss) from discontinued operations, net of tax
0.1 
0.3 
Net income (loss) including noncontrolling interests
79.4 
82.7 
Less: Net (income) loss attributable to noncontrolling interests
0.1 
0.2 
Net income (loss) attributable to MCBC
79.5 
82.9 
Comprehensive Income (Loss), Net of Tax, Attributable to Parent
$ 190.6 
$ 253.4 
Supplemental Guarantor Information Balance Sheet (Details) (USD $)
In Millions, unless otherwise specified
Mar. 31, 2012
Dec. 31, 2011
Mar. 26, 2011
Dec. 25, 2010
Current assets:
 
 
 
 
Cash and cash equivalents
$ 836.3 
$ 1,078.9 
$ 1,081.7 
$ 1,217.6 
Accounts receivable, net
512.4 
588.8 
 
 
Other receivables, net
133.7 
137.2 
 
 
Total inventories, net
256.4 
207.2 
 
 
Other assets, net
108.7 
94.0 
 
 
Deferred tax assets
26.4 
11.6 
 
 
Discontinued operations
0.3 
0.3 
 
 
Total current assets
1,874.2 
2,118.0 
 
 
Properties, net
1,455.3 
1,430.1 
 
 
Goodwill
1,491.5 
1,453.3 
 
 
Other intangibles, net
4,682.8 
4,586.0 
 
 
Investment in MillerCoors
2,613.1 
2,487.9 
 
 
Deferred tax assets
128.5 
149.9 
 
 
Total assets
12,436.2 
12,423.8 
 
 
Current liabilities :
 
 
 
 
Accounts payable
205.6 
301.2 
 
 
Derivative hedging instruments
11.4 
107.6 
 
 
Deferred tax liabilities
169.1 
161.3 
 
 
Debt, Current
48.2 
46.9 
 
 
Discontinued operations
13.7 
13.4 
 
 
Total current liabilities
1,060.0 
1,277.2 
 
 
Long-term debt
1,950.4 
1,914.9 
 
 
Derivative hedging instruments
222.6 
212.5 
 
 
Pension and post-retirement benefits
708.1 
697.5 
 
 
Deferred tax liabilities
474.9 
455.6 
 
 
Discontinued operations
22.4 
22.0 
 
 
Total liabilities
4,588.3 
4,733.6 
 
 
MCBC stockholders' equity
7,807.3 
7,647.9 
 
 
Noncontrolling interests
40.6 
42.3 
 
 
Total equity
7,847.9 
7,690.2 
 
 
Total liabilities and equity
12,436.2 
12,423.8 
 
 
Parent Company [Member]
 
 
 
 
Current assets:
 
 
 
 
Cash and cash equivalents
680.6 
601.1 
792.3 
832.0 
Accounts receivable, net
1.9 
0.9 
 
 
Other receivables, net
65.4 
46.9 
 
 
Other assets, net
10.8 
9.7 
 
 
Total current assets
758.7 
658.6 
 
 
Properties, net
26.4 
27.6 
 
 
Net investment in and advances to subsidiaries
8,163.6 
7,925.2 
 
 
Deferred tax assets
28.8 
33.1 
 
 
Other assets, net
20.9 
19.8 
 
 
Total assets
8,998.4 
8,664.3 
 
 
Current liabilities :
 
 
 
 
Accounts payable
8.1 
7.3 
 
 
Accrued expenses and other liabilities, net
35.7 
34.6 
 
 
Deferred tax liabilities
6.5 
6.2 
 
 
Intercompany accounts payable
584.5 
413.8 
 
 
Total current liabilities
634.8 
461.9 
 
 
Long-term debt
550.6 
546.2 
 
 
Pension and post-retirement benefits
0 
 
 
 
Other liabilities, net
5.7 
8.3 
 
 
Total liabilities
1,191.1 
1,016.4 
 
 
MCBC stockholders' equity
8,021.5 
8,267.8 
 
 
Intercompany notes receivable
(214.2)
619.9 
 
 
Total stockholders' equity
7,807.3 
7,647.9 
 
 
Total equity
7,807.3 
7,647.9 
 
 
Total liabilities and equity
8,998.4 
8,664.3 
 
 
Issuer 2002 [Member]
 
 
 
 
Current assets:
 
 
 
 
Cash and cash equivalents
0 
0 
0 
7.0 
Accounts receivable, net
6.6 
6.7 
 
 
Other assets, net
4.0 
4.0 
 
 
Deferred tax assets
11.4 
5.8 
 
 
Intercompany accounts receivable
166.4 
49.1 
 
 
Total current assets
188.4 
65.6 
 
 
Properties, net
7.0 
7.2 
 
 
Goodwill
11.4 
11.4 
 
 
Other intangibles, net
37.2 
37.2 
 
 
Net investment in and advances to subsidiaries
5,586.9 
5,686.2 
 
 
Deferred tax assets
103.7 
119.1 
 
 
Other assets, net
13.8 
14.7 
 
 
Total assets
5,948.4 
5,941.4 
 
 
Current liabilities :
 
 
 
 
Accounts payable
2.3 
3.2 
 
 
Accrued expenses and other liabilities, net
5.5 
4.7 
 
 
Derivative hedging instruments
2.2 
101.4 
 
 
Deferred tax liabilities
 
0 
 
 
Debt, Current
44.6 
44.7 
 
 
Intercompany accounts payable
9.0 
26.1 
 
 
Total current liabilities
63.6 
180.1 
 
 
Derivative hedging instruments
220.9 
210.7 
 
 
Pension and post-retirement benefits
2.8 
2.7 
 
 
Other liabilities, net
14.7 
14.5 
 
 
Intercompany notes payables
212.3 
(618.0)
 
 
Total liabilities
514.3 
1,026.0 
 
 
MCBC stockholders' equity
5,476.3 
4,954.7 
 
 
Intercompany notes receivable
42.2 
39.3 
 
 
Total stockholders' equity
5,434.1 
4,915.4 
 
 
Total equity
5,434.1 
4,915.4 
 
 
Total liabilities and equity
5,948.4 
5,941.4 
 
 
Subsidiary Guarantors
 
 
 
 
Current assets:
 
 
 
 
Cash and cash equivalents
64.3 
318.0 
167.8 
190.1 
Accounts receivable, net
172.6 
203.6 
 
 
Other receivables, net
23.5 
29.1 
 
 
Total inventories, net
101.7 
83.0 
 
 
Other assets, net
62.4 
44.7 
 
 
Intercompany accounts receivable
1,017.2 
1,449.6 
 
 
Total current assets
1,441.7 
2,128.0 
 
 
Properties, net
877.3 
862.9 
 
 
Goodwill
312.3 
305.4 
 
 
Other intangibles, net
4,237.5 
4,150.8 
 
 
Investment in MillerCoors
2,613.1 
2,487.9 
 
 
Net investment in and advances to subsidiaries
377.3 
611.5 
 
 
Deferred tax assets
11.0 
12.7 
 
 
Other assets, net
94.2 
92.9 
 
 
Total assets
9,964.4 
10,652.1 
 
 
Current liabilities :
 
 
 
 
Accounts payable
73.2 
100.6 
 
 
Accrued expenses and other liabilities, net
237.3 
270.4 
 
 
Derivative hedging instruments
8.0 
4.7 
 
 
Deferred tax liabilities
168.9 
161.4 
 
 
Intercompany accounts payable
868.7 
1,566.5 
 
 
Total current liabilities
1,356.1 
2,103.6 
 
 
Long-term debt
1,399.8 
1,368.7 
 
 
Derivative hedging instruments
1.4 
1.5 
 
 
Pension and post-retirement benefits
399.7 
392.5 
 
 
Other liabilities, net
32.8 
35.3 
 
 
Total liabilities
3,189.8 
3,901.6 
 
 
MCBC stockholders' equity
11,677.7 
11,675.6 
 
 
Intercompany notes receivable
4,903.1 
4,925.1 
 
 
Total stockholders' equity
6,774.6 
6,750.5 
 
 
Total equity
6,774.6 
6,750.5 
 
 
Total liabilities and equity
9,964.4 
10,652.1 
 
 
Subsidiary Non-Guarantors
 
 
 
 
Current assets:
 
 
 
 
Cash and cash equivalents
91.4 
159.8 
121.6 
188.5 
Accounts receivable, net
331.3 
377.6 
 
 
Other receivables, net
45.4 
61.2 
 
 
Total inventories, net
154.7 
124.2 
 
 
Other assets, net
31.5 
35.6 
 
 
Deferred tax assets
21.3 
12.1 
 
 
Discontinued operations
0.3 
0.3 
 
 
Intercompany accounts receivable
857.9 
1,537.3 
 
 
Total current assets
1,533.8 
2,308.1 
 
 
Properties, net
544.6 
532.4 
 
 
Goodwill
1,167.8 
1,136.5 
 
 
Other intangibles, net
408.1 
398.0 
 
 
Net investment in and advances to subsidiaries
4,927.4 
4,774.0 
 
 
Deferred tax assets
0 
1.9 
 
 
Other assets, net
61.9 
71.2 
 
 
Total assets
8,643.6 
9,222.1 
 
 
Current liabilities :
 
 
 
 
Accounts payable
122.6 
190.1 
 
 
Accrued expenses and other liabilities, net
333.5 
337.1 
 
 
Derivative hedging instruments
1.2 
1.5 
 
 
Debt, Current
3.6 
2.2 
 
 
Discontinued operations
13.7 
13.4 
 
 
Intercompany accounts payable
579.3 
1,029.6 
 
 
Total current liabilities
1,053.9 
1,573.9 
 
 
Derivative hedging instruments
0.3 
0.3 
 
 
Pension and post-retirement benefits
305.6 
302.3 
 
 
Deferred tax liabilities
489.9 
472.5 
 
 
Other liabilities, net
96.7 
95.8 
 
 
Discontinued operations
22.4 
22.0 
 
 
Intercompany notes payables
4,947.2 
(4,966.3)
 
 
Total liabilities
6,916.0 
7,433.1 
 
 
MCBC stockholders' equity
1,687.0 
1,746.7 
 
 
Total stockholders' equity
1,687.0 
1,746.7 
 
 
Noncontrolling interests
40.6 
42.3 
 
 
Total equity
1,727.6 
1,789.0 
 
 
Total liabilities and equity
8,643.6 
9,222.1 
 
 
Eliminations
 
 
 
 
Current assets:
 
 
 
 
Cash and cash equivalents
0 
 
0 
 
Other receivables, net
(0.6)
 
 
 
Deferred tax assets
(6.3)
(6.3)
 
 
Intercompany accounts receivable
(2,041.5)
(3,036.0)
 
 
Total current assets
(2,048.4)
(3,042.3)
 
 
Net investment in and advances to subsidiaries
(19,055.2)
(18,996.9)
 
 
Deferred tax assets
(15.0)
(16.9)
 
 
Total assets
(21,118.6)
(22,056.1)
 
 
Current liabilities :
 
 
 
 
Accounts payable
(0.6)
 
 
 
Deferred tax liabilities
(6.3)
(6.3)
 
 
Intercompany accounts payable
(2,041.5)
(3,036.0)
 
 
Total current liabilities
(2,048.4)
(3,042.3)
 
 
Pension and post-retirement benefits
0 
 
 
 
Deferred tax liabilities
(15.0)
(16.9)
 
 
Intercompany notes payables
(5,159.5)
5,584.3 
 
 
Total liabilities
(7,222.9)
(8,643.5)
 
 
MCBC stockholders' equity
(19,055.2)
(18,996.9)
 
 
Intercompany notes receivable
(5,159.5)
(5,584.3)
 
 
Total stockholders' equity
(13,895.7)
(13,412.6)
 
 
Total equity
(13,895.7)
(13,412.6)
 
 
Total liabilities and equity
(21,118.6)
(22,056.1)
 
 
Consolidated [Member]
 
 
 
 
Current assets:
 
 
 
 
Cash and cash equivalents
836.3 
1,078.9 
1,081.7 
1,217.6 
Accounts receivable, net
512.4 
588.8 
 
 
Other receivables, net
133.7 
137.2 
 
 
Total inventories, net
256.4 
207.2 
 
 
Other assets, net
108.7 
94.0 
 
 
Deferred tax assets
26.4 
11.6 
 
 
Discontinued operations
0.3 
0.3 
 
 
Total current assets
1,874.2 
2,118.0 
 
 
Properties, net
1,455.3 
1,430.1 
 
 
Goodwill
1,491.5 
1,453.3 
 
 
Other intangibles, net
4,682.8 
4,586.0 
 
 
Investment in MillerCoors
2,613.1 
2,487.9 
 
 
Deferred tax assets
128.5 
149.9 
 
 
Other assets, net
190.8 
198.6 
 
 
Total assets
12,436.2 
12,423.8 
 
 
Current liabilities :
 
 
 
 
Accounts payable
205.6 
301.2 
 
 
Accrued expenses and other liabilities, net
612.0 
646.8 
 
 
Derivative hedging instruments
11.4 
107.6 
 
 
Deferred tax liabilities
169.1 
161.3 
 
 
Debt, Current
48.2 
46.9 
 
 
Discontinued operations
13.7 
13.4 
 
 
Total current liabilities
1,060.0 
1,277.2 
 
 
Long-term debt
1,950.4 
1,914.9 
 
 
Derivative hedging instruments
222.6 
212.5 
 
 
Pension and post-retirement benefits
708.1 
697.5 
 
 
Deferred tax liabilities
474.9 
455.6 
 
 
Other liabilities, net
149.9 
153.9 
 
 
Discontinued operations
22.4 
22.0 
 
 
Total liabilities
4,588.3 
4,733.6 
 
 
MCBC stockholders' equity
7,807.3 
7,647.9 
 
 
Total stockholders' equity
7,807.3 
7,647.9 
 
 
Noncontrolling interests
40.6 
42.3 
 
 
Total equity
7,847.9 
7,690.2 
 
 
Total liabilities and equity
$ 12,436.2 
$ 12,423.8 
 
 
Supplemental Guarantor Information Cash Flows (Details) (USD $)
In Millions, unless otherwise specified
3 Months Ended
Mar. 31, 2012
Mar. 26, 2011
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
 
 
Net Cash Provided by (Used in) Operating Activities
$ 50.4 
$ 45.0 
Cash flows from investing activities:
 
 
Additions to properties
(33.8)
(34.3)
Proceeds from sales of properties and intangible assets, net
0.8 
1.2 
Payments to Acquire Businesses, Net of Cash Acquired
0 
(29.4)
Investment in MillerCoors
(236.0)
(277.2)
Proceeds from settlements of derivative instruments
0 
15.4 
Investment in and advances to an unconsolidated affiliate
(4.6)
0 
Trade loan repayments from customers
3.8 
3.7 
Trade loans advanced to customers
(2.4)
(2.6)
Payments for (Proceeds from) Other Investing Activities
0 
(1.1)
Net cash used in investing activities
(258.2)
(144.6)
Cash flows from financing activities:
 
 
Exercise of stock options under equity compensation plans
19.7 
4.3 
Excess tax benefits from share-based compensation
3.3 
0.8 
Dividends paid
(57.8)
(52.1)
Dividends paid to noncontrolling interests holders
(1.7)
0 
Debt issuance costs
0.1 
0 
Net (payments) proceeds from revolving credit facilities
1.5 
0.4 
Net cash used in financing activities
(45.9)
(50.1)
Cash and cash equivalents:
 
 
Net increase (decrease) in cash and cash equivalents
(253.7)
(149.7)
Effect of foreign exchange rate changes on cash and cash equivalents
11.1 
13.8 
Balance at beginning of year
1,078.9 
1,217.6 
Balance at end of period
836.3 
1,081.7 
Parent Company [Member]
 
 
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
 
 
Net Cash Provided by (Used in) Operating Activities
155.3 
(22.6)
Cash flows from investing activities:
 
 
Additions to properties
(1.1)
(0.9)
Investment in and advances to an unconsolidated affiliate
 
15.4 
Net intercompany investing activity
(39.9)
0.2 
Net cash used in investing activities
(41.0)
14.7 
Cash flows from financing activities:
 
 
Exercise of stock options under equity compensation plans
19.7 
4.3 
Excess tax benefits from share-based compensation
3.3 
0.8 
Dividends paid
(57.8)
(46.2)
Net intercompany financing activity
 
9.3 
Net cash used in financing activities
(34.8)
(31.8)
Cash and cash equivalents:
 
 
Net increase (decrease) in cash and cash equivalents
79.5 
(39.7)
Effect of foreign exchange rate changes on cash and cash equivalents
 
0 
Balance at beginning of year
601.1 
832.0 
Balance at end of period
680.6 
792.3 
Issuer 2002 [Member]
 
 
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
 
 
Net Cash Provided by (Used in) Operating Activities
180.9 
(5.2)
Cash flows from investing activities:
 
 
Proceeds from settlements of derivative instruments
(110.6)
 
Net intercompany investing activity
(110.1)
(1.8)
Net cash used in investing activities
(220.7)
(1.8)
Cash flows from financing activities:
 
 
Net intercompany financing activity
39.8 
0 
Net cash used in financing activities
39.8 
0 
Cash and cash equivalents:
 
 
Net increase (decrease) in cash and cash equivalents
0 
(7.0)
Effect of foreign exchange rate changes on cash and cash equivalents
 
0 
Balance at beginning of year
0 
7.0 
Balance at end of period
0 
0 
Subsidiary Guarantors
 
 
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
 
 
Net Cash Provided by (Used in) Operating Activities
(253.9)
32.8 
Cash flows from investing activities:
 
 
Additions to properties
(19.1)
(19.4)
Investment in MillerCoors
(236.0)
(277.2)
Return of capital from MillerCoors
124.6 
177.5 
Payments for (Proceeds from) Other Investing Activities
 
(0.2)
Net intercompany investing activity
126.4 
0 
Net cash used in investing activities
(4.1)
(118.9)
Cash flows from financing activities:
 
 
Dividends paid
(104.0)
 
Debt issuance costs
0.1 
 
Net intercompany financing activity
100.0 
58.5 
Net cash used in financing activities
(4.1)
58.5 
Cash and cash equivalents:
 
 
Net increase (decrease) in cash and cash equivalents
(262.1)
(27.6)
Effect of foreign exchange rate changes on cash and cash equivalents
8.4 
5.3 
Balance at beginning of year
318.0 
190.1 
Balance at end of period
64.3 
167.8 
Subsidiary Non-Guarantors
 
 
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
 
 
Net Cash Provided by (Used in) Operating Activities
72.1 
40.0 
Cash flows from investing activities:
 
 
Additions to properties
(13.6)
(14.0)
Proceeds from sales of properties and intangible assets, net
0.8 
1.2 
Payments to Acquire Businesses, Net of Cash Acquired
 
(29.4)
Investment in and advances to an unconsolidated affiliate
(4.6)
 
Trade loan repayments from customers
3.8 
3.7 
Trade loans advanced to customers
(2.4)
(2.6)
Payments for (Proceeds from) Other Investing Activities
 
(0.9)
Net intercompany investing activity
 
44.3 
Net cash used in investing activities
(16.0)
4.1 
Cash flows from financing activities:
 
 
Dividends paid
 
(5.9)
Dividends paid to noncontrolling interests holders
(1.7)
 
Proceeds from (Repayments of) Short-term Debt
(10.8)
6.8 
Net (payments) proceeds from revolving credit facilities
1.5 
0.4 
Changes in Short-term Borrowings and Overdraft Balances
 
(10.3)
Net intercompany financing activity
(116.2)
(110.5)
Net cash used in financing activities
(127.2)
(119.5)
Cash and cash equivalents:
 
 
Net increase (decrease) in cash and cash equivalents
(71.1)
(75.4)
Effect of foreign exchange rate changes on cash and cash equivalents
2.7 
8.5 
Balance at beginning of year
159.8 
188.5 
Balance at end of period
91.4 
121.6 
Eliminations
 
 
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
 
 
Net Cash Provided by (Used in) Operating Activities
(104.0)
0 
Cash flows from investing activities:
 
 
Net intercompany investing activity
23.6 
(42.7)
Net cash used in investing activities
23.6 
(42.7)
Cash flows from financing activities:
 
 
Dividends paid
104.0 
 
Net intercompany financing activity
(23.6)
42.7 
Net cash used in financing activities
80.4 
42.7 
Cash and cash equivalents:
 
 
Balance at end of period
0 
0 
Consolidated [Member]
 
 
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
 
 
Net Cash Provided by (Used in) Operating Activities
50.4 
45.0 
Cash flows from investing activities:
 
 
Additions to properties
(33.8)
(34.3)
Proceeds from sales of properties and intangible assets, net
0.8 
1.2 
Payments to Acquire Businesses, Net of Cash Acquired
 
(29.4)
Investment in MillerCoors
(236.0)
(277.2)
Return of capital from MillerCoors
124.6 
177.5 
Proceeds from settlements of derivative instruments
(110.6)
 
Investment in and advances to an unconsolidated affiliate
(4.6)
15.4 
Trade loan repayments from customers
3.8 
3.7 
Trade loans advanced to customers
(2.4)
(2.6)
Payments for (Proceeds from) Other Investing Activities
 
(1.1)
Net intercompany investing activity
 
0 
Net cash used in investing activities
(258.2)
(144.6)
Cash flows from financing activities:
 
 
Exercise of stock options under equity compensation plans
19.7 
 
Excess tax benefits from share-based compensation
3.3 
4.3 
Dividends paid
(57.8)
(0.8)
Dividends paid to noncontrolling interests holders
(1.7)
52.1 
Debt issuance costs
0.1 
 
Proceeds from (Repayments of) Short-term Debt
(10.8)
6.8 
Net (payments) proceeds from revolving credit facilities
1.5 
0.4 
Changes in Short-term Borrowings and Overdraft Balances
 
(10.3)
Net intercompany financing activity
 
0 
Net cash used in financing activities
(45.9)
(50.1)
Cash and cash equivalents:
 
 
Net increase (decrease) in cash and cash equivalents
(253.7)
(149.7)
Effect of foreign exchange rate changes on cash and cash equivalents
11.1 
13.8 
Balance at beginning of year
1,078.9 
1,217.6 
Balance at end of period
$ 836.3 
$ 1,081.7 
Supplemental Guarantor Information Recast Statement of Operations (Details) (USD $)
In Millions, unless otherwise specified
3 Months Ended
Mar. 31, 2012
Mar. 26, 2011
Sales
$ 1,008.1 
$ 997.3 
Excise and Sales Taxes
(316.7)
(306.9)
Net sales
691.4 
690.4 
Cost of Goods Sold
(438.8)
(427.2)
Gross profit
252.6 
263.2 
Selling, General and Administrative Expense
(248.2)
(238.4)
Restructuring, Settlement and Impairment Provisions
(1.5)
0 
Equity income in MillerCoors
118.9 
101.2 
Operating income (loss)
121.8 
126.0 
Interest income (expense), net
(23.8)
(26.8)
Other income (expense), net
(1.4)
(0.7)
Income (loss) from continuing operations before income taxes
96.6 
98.5 
Income Tax Expense (Benefit)
(17.3)
(16.1)
Net Income (loss) from continuing operations
79.3 
82.4 
Income (loss) from discontinued operations, net of tax
0.1 
0.3 
Net income (loss) including noncontrolling interests
79.4 
82.7 
Net Income (Loss) Attributable to Noncontrolling Interest
(0.1)
(0.2)
Net Income (Loss) Attributable to Parent
79.5 
82.9 
Comprehensive Income (Loss), Net of Tax, Attributable to Parent
190.6 
253.4 
Parent Company [Member]
 
 
Sales
5.5 
5.8 
Net sales
5.5 
5.8 
Gross profit
5.5 
5.8 
Selling, General and Administrative Expense
(34.5)
(32.7)
Restructuring, Settlement and Impairment Provisions
(1.1)
 
Equity income (loss) in subsidiaries
85.0 
185.9 
Operating income (loss)
54.9 
159.0 
Interest income (expense), net
 
(8.4)
Other income (expense), net
12.0 
1.4 
Income (loss) from continuing operations before income taxes
66.9 
152.0 
Income Tax Expense (Benefit)
12.6 
(69.1)
Net Income (loss) from continuing operations
79.5 
82.9 
Net income (loss) including noncontrolling interests
79.5 
82.9 
Net Income (Loss) Attributable to Parent
79.5 
82.9 
Comprehensive Income (Loss), Net of Tax, Attributable to Parent
56.1 
113.1 
Parent Company [Member] |
Recast [Member]
 
 
Sales
5.5 
5.8 
Net sales
5.5 
5.8 
Gross profit
5.5 
5.8 
Selling, General and Administrative Expense
(34.5)
(32.7)
Restructuring, Settlement and Impairment Provisions
(1.1)
 
Equity income (loss) in subsidiaries
85.0 
185.9 
Operating income (loss)
54.9 
159.0 
Interest income (expense), net
0 
(8.4)
Other income (expense), net
12.0 
1.4 
Income (loss) from continuing operations before income taxes
66.9 
152.0 
Income Tax Expense (Benefit)
12.6 
(69.1)
Net Income (loss) from continuing operations
79.5 
82.9 
Net income (loss) including noncontrolling interests
79.5 
82.9 
Net Income (Loss) Attributable to Parent
79.5 
82.9 
Comprehensive Income (Loss), Net of Tax, Attributable to Parent
56.1 
113.1 
Issuer 2002 [Member]
 
 
Sales
43.3 
43.2 
Net sales
43.3 
43.2 
Cost of Goods Sold
(7.5)
(10.9)
Gross profit
35.8 
32.3 
Selling, General and Administrative Expense
(9.1)
(7.6)
Equity income (loss) in subsidiaries
23.9 
1.6 
Operating income (loss)
50.6 
26.3 
Interest income (expense), net
(9.2)
11.9 
Other income (expense), net
(12.2)
(1.2)
Income (loss) from continuing operations before income taxes
29.2 
37.0 
Income Tax Expense (Benefit)
(31.9)
47.8 
Net Income (loss) from continuing operations
(2.7)
84.8 
Net income (loss) including noncontrolling interests
(2.7)
84.8 
Net Income (Loss) Attributable to Parent
(2.7)
84.8 
Comprehensive Income (Loss), Net of Tax, Attributable to Parent
(16.2)
81.6 
Issuer 2002 [Member] |
Recast [Member]
 
 
Sales
43.3 
43.2 
Net sales
43.3 
43.2 
Cost of Goods Sold
(7.5)
(10.9)
Gross profit
35.8 
32.3 
Selling, General and Administrative Expense
(9.1)
(7.6)
Equity income (loss) in subsidiaries
23.9 
1.6 
Operating income (loss)
50.6 
26.3 
Interest income (expense), net
(9.2)
11.9 
Other income (expense), net
(12.2)
(1.2)
Income (loss) from continuing operations before income taxes
29.2 
37.0 
Income Tax Expense (Benefit)
(31.9)
47.8 
Net Income (loss) from continuing operations
(2.7)
84.8 
Net income (loss) including noncontrolling interests
(2.7)
84.8 
Net Income (Loss) Attributable to Parent
(2.7)
84.8 
Comprehensive Income (Loss), Net of Tax, Attributable to Parent
(16.2)
81.6 
Subsidiary Guarantors
 
 
Sales
519.2 
511.8 
Excise and Sales Taxes
(123.2)
(123.6)
Net sales
396.0 
388.2 
Cost of Goods Sold
(240.9)
(224.5)
Gross profit
155.1 
163.7 
Selling, General and Administrative Expense
(112.2)
(110.6)
Restructuring, Settlement and Impairment Provisions
(2.1)
(2.1)
Equity income (loss) in subsidiaries
(139.1)
(148.8)
Equity income in MillerCoors
118.9 
101.2 
Operating income (loss)
20.6 
3.4 
Interest income (expense), net
97.5 
80.3 
Other income (expense), net
0 
(0.1)
Income (loss) from continuing operations before income taxes
118.1 
83.6 
Income Tax Expense (Benefit)
(1.5)
7.6 
Net Income (loss) from continuing operations
116.6 
91.2 
Net income (loss) including noncontrolling interests
116.6 
91.2 
Net Income (Loss) Attributable to Parent
116.6 
91.2 
Comprehensive Income (Loss), Net of Tax, Attributable to Parent
316.8 
286.5 
Subsidiary Guarantors |
Recast [Member]
 
 
Sales
951.6 
958.3 
Excise and Sales Taxes
(303.9)
(300.9)
Net sales
647.7 
657.4 
Cost of Goods Sold
(421.2)
(417.7)
Gross profit
226.5 
239.7 
Selling, General and Administrative Expense
(193.0)
(187.4)
Restructuring, Settlement and Impairment Provisions
(0.4)
 
Equity income (loss) in subsidiaries
(112.5)
(118.5)
Equity income in MillerCoors
118.9 
101.2 
Operating income (loss)
39.5 
35.0 
Interest income (expense), net
83.3 
66.9 
Other income (expense), net
(0.4)
(0.1)
Income (loss) from continuing operations before income taxes
122.4 
101.8 
Income Tax Expense (Benefit)
(5.8)
6.8 
Net Income (loss) from continuing operations
116.6 
108.6 
Net income (loss) including noncontrolling interests
116.6 
108.6 
Net Income (Loss) Attributable to Noncontrolling Interest
 
(0.7)
Net Income (Loss) Attributable to Parent
116.6 
107.9 
Comprehensive Income (Loss), Net of Tax, Attributable to Parent
337.7 
333.5 
Subsidiary Non-Guarantors
 
 
Sales
489.2 
484.3 
Excise and Sales Taxes
(193.5)
(183.3)
Net sales
295.7 
301.0 
Cost of Goods Sold
(231.8)
(233.6)
Gross profit
63.9 
67.4 
Selling, General and Administrative Expense
(100.1)
(93.5)
Restructuring, Settlement and Impairment Provisions
1.7 
2.1 
Equity income (loss) in subsidiaries
52.6 
54.5 
Operating income (loss)
18.1 
30.5 
Interest income (expense), net
(112.1)
(110.6)
Other income (expense), net
(1.2)
(0.8)
Income (loss) from continuing operations before income taxes
(95.2)
(80.9)
Income Tax Expense (Benefit)
3.5 
(2.4)
Net Income (loss) from continuing operations
(91.7)
(83.3)
Income (loss) from discontinued operations, net of tax
0.1 
0.3 
Net income (loss) including noncontrolling interests
(91.6)
(83.0)
Net Income (Loss) Attributable to Noncontrolling Interest
(0.1)
(0.2)
Net Income (Loss) Attributable to Parent
(91.5)
(82.8)
Comprehensive Income (Loss), Net of Tax, Attributable to Parent
(143.7)
(134.6)
Subsidiary Non-Guarantors |
Recast [Member]
 
 
Sales
59.7 
37.8 
Excise and Sales Taxes
(12.8)
(6.0)
Net sales
46.9 
31.8 
Cost of Goods Sold
(54.5)
(40.4)
Gross profit
(7.6)
(8.6)
Selling, General and Administrative Expense
(19.2)
(16.7)
Restructuring, Settlement and Impairment Provisions
0 
 
Equity income (loss) in subsidiaries
26.0 
42.1 
Operating income (loss)
(0.8)
16.8 
Interest income (expense), net
(97.9)
(97.2)
Other income (expense), net
(0.8)
(0.8)
Income (loss) from continuing operations before income taxes
(99.5)
(81.2)
Income Tax Expense (Benefit)
7.8 
(1.6)
Net Income (loss) from continuing operations
(91.7)
(82.8)
Income (loss) from discontinued operations, net of tax
0.1 
0.3 
Net income (loss) including noncontrolling interests
(91.6)
(82.5)
Net Income (Loss) Attributable to Noncontrolling Interest
0.1 
(0.9)
Net Income (Loss) Attributable to Parent
(91.5)
(81.6)
Comprehensive Income (Loss), Net of Tax, Attributable to Parent
(164.6)
(163.7)
Eliminations
 
 
Sales
(49.1)
(47.8)
Net sales
(49.1)
(47.8)
Cost of Goods Sold
41.4 
41.8 
Gross profit
(7.7)
(6.0)
Selling, General and Administrative Expense
7.7 
6.0 
Equity income (loss) in subsidiaries
(22.4)
(93.2)
Operating income (loss)
(22.4)
(93.2)
Income (loss) from continuing operations before income taxes
(22.4)
(93.2)
Net Income (loss) from continuing operations
(22.4)
(93.2)
Net income (loss) including noncontrolling interests
(22.4)
(93.2)
Net Income (Loss) Attributable to Parent
(22.4)
(93.2)
Comprehensive Income (Loss), Net of Tax, Attributable to Parent
(22.4)
(93.2)
Eliminations |
Recast [Member]
 
 
Sales
(52.0)
(47.8)
Net sales
(52.0)
(47.8)
Cost of Goods Sold
44.4 
41.8 
Gross profit
(7.6)
(6.0)
Selling, General and Administrative Expense
7.6 
6.0 
Equity income (loss) in subsidiaries
(22.4)
(111.1)
Operating income (loss)
(22.4)
(111.1)
Income (loss) from continuing operations before income taxes
(22.4)
(111.1)
Net Income (loss) from continuing operations
(22.4)
(111.1)
Net income (loss) including noncontrolling interests
(22.4)
(111.1)
Net Income (Loss) Attributable to Parent
(22.4)
(111.1)
Comprehensive Income (Loss), Net of Tax, Attributable to Parent
(22.4)
(111.1)
Consolidated [Member]
 
 
Sales
1,008.1 
997.3 
Excise and Sales Taxes
(316.7)
(306.9)
Net sales
691.4 
690.4 
Cost of Goods Sold
(438.8)
(427.2)
Gross profit
252.6 
263.2 
Selling, General and Administrative Expense
(248.2)
(238.4)
Restructuring, Settlement and Impairment Provisions
(1.5)
0 
Equity income in MillerCoors
118.9 
101.2 
Operating income (loss)
121.8 
126.0 
Interest income (expense), net
(23.8)
(26.8)
Other income (expense), net
(1.4)
(0.7)
Income (loss) from continuing operations before income taxes
96.6 
98.5 
Income Tax Expense (Benefit)
(17.3)
(16.1)
Net Income (loss) from continuing operations
79.3 
82.4 
Income (loss) from discontinued operations, net of tax
0.1 
0.3 
Net income (loss) including noncontrolling interests
79.4 
82.7 
Net Income (Loss) Attributable to Noncontrolling Interest
(0.1)
(0.2)
Net Income (Loss) Attributable to Parent
79.5 
82.9 
Comprehensive Income (Loss), Net of Tax, Attributable to Parent
190.6 
253.4 
Consolidated [Member] |
Recast [Member]
 
 
Sales
1,008.1 
997.3 
Excise and Sales Taxes
(316.7)
(306.9)
Net sales
691.4 
690.4 
Cost of Goods Sold
(438.8)
(427.2)
Gross profit
252.6 
263.2 
Selling, General and Administrative Expense
(248.2)
(238.4)
Restructuring, Settlement and Impairment Provisions
(1.5)
 
Equity income in MillerCoors
118.9 
101.2 
Operating income (loss)
121.8 
126.0 
Interest income (expense), net
(23.8)
(26.8)
Other income (expense), net
(1.4)
(0.7)
Income (loss) from continuing operations before income taxes
96.6 
98.5 
Income Tax Expense (Benefit)
(17.3)
(16.1)
Net Income (loss) from continuing operations
79.3 
82.4 
Income (loss) from discontinued operations, net of tax
0.1 
0.3 
Net income (loss) including noncontrolling interests
79.4 
82.7 
Net Income (Loss) Attributable to Noncontrolling Interest
0.1 
(0.2)
Net Income (Loss) Attributable to Parent
79.5 
82.9 
Comprehensive Income (Loss), Net of Tax, Attributable to Parent
$ 190.6 
$ 253.4 
Supplemental Guarantor Information Recast Balance Sheet (Details) (USD $)
In Millions, unless otherwise specified
Mar. 31, 2012
Dec. 31, 2011
Mar. 26, 2011
Dec. 25, 2010
Cash and cash equivalents
$ 836.3 
$ 1,078.9 
$ 1,081.7 
$ 1,217.6 
Accounts receivable, net
512.4 
588.8 
 
 
Other Receivables
133.7 
137.2 
 
 
Inventory, Net
256.4 
207.2 
 
 
Other assets, net
108.7 
94.0 
 
 
Deferred tax assets
26.4 
11.6 
 
 
Discontinued operations
0.3 
0.3 
 
 
Assets, Current
1,874.2 
2,118.0 
 
 
Properties, net
1,455.3 
1,430.1 
 
 
Goodwill
1,491.5 
1,453.3 
 
 
Other intangibles, net
4,682.8 
4,586.0 
 
 
Investment in MillerCoors
2,613.1 
2,487.9 
 
 
Deferred tax assets
128.5 
149.9 
 
 
Assets
12,436.2 
12,423.8 
 
 
Accounts payable
205.6 
301.2 
 
 
Derivative hedging instruments
11.4 
107.6 
 
 
Deferred tax liabilities
169.1 
161.3 
 
 
Debt, Current
48.2 
46.9 
 
 
Discontinued operations
13.7 
13.4 
 
 
Total current liabilities
1,060.0 
1,277.2 
 
 
Long-term debt
1,950.4 
1,914.9 
 
 
Derivative hedging instruments
222.6 
212.5 
 
 
Pension and post-retirement benefits
708.1 
697.5 
 
 
Deferred tax liabilities
474.9 
455.6 
 
 
Discontinued operations
22.4 
22.0 
 
 
Liabilities
4,588.3 
4,733.6 
 
 
Total Molson Coors Brewing Company stockholders' equity
7,807.3 
7,647.9 
 
 
Noncontrolling interests
40.6 
42.3 
 
 
Total equity
7,847.9 
7,690.2 
 
 
Total liabilities and equity
12,436.2 
12,423.8 
 
 
Recast [Member]
 
 
 
 
Deferred tax liabilities
 
(34.7)
 
 
Parent Company [Member]
 
 
 
 
Cash and cash equivalents
680.6 
601.1 
792.3 
832.0 
Accounts receivable, net
1.9 
0.9 
 
 
Other Receivables
65.4 
46.9 
 
 
Other assets, net
10.8 
9.7 
 
 
Assets, Current
758.7 
658.6 
 
 
Properties, net
26.4 
27.6 
 
 
Investments in and Advance to Affiliates, Subsidiaries, Associates, and Joint Ventures
8,163.6 
7,925.2 
 
 
Deferred tax assets
28.8 
33.1 
 
 
Other assets, net
20.9 
19.8 
 
 
Assets
8,998.4 
8,664.3 
 
 
Accounts payable
8.1 
7.3 
 
 
Accrued expenses and other liabilities, net
35.7 
34.6 
 
 
Deferred tax liabilities
6.5 
6.2 
 
 
Accounts Payable, Related Parties, Current
584.5 
413.8 
 
 
Total current liabilities
634.8 
461.9 
 
 
Long-term debt
550.6 
546.2 
 
 
Pension and post-retirement benefits
0 
 
 
 
Other liabilities, net
5.7 
8.3 
 
 
Liabilities
1,191.1 
1,016.4 
 
 
Total Molson Coors Brewing Company stockholders' equity
8,021.5 
8,267.8 
 
 
Notes Receivable, Related Parties, Noncurrent
(214.2)
619.9 
 
 
Total stockholders' equity
7,807.3 
7,647.9 
 
 
Total equity
7,807.3 
7,647.9 
 
 
Total liabilities and equity
8,998.4 
8,664.3 
 
 
Parent Company [Member] |
Recast [Member]
 
 
 
 
Cash and cash equivalents
680.6 
601.1 
792.3 
832.0 
Accounts receivable, net
1.9 
0.9 
 
 
Other Receivables
65.4 
46.9 
 
 
Other assets, net
10.8 
9.7 
 
 
Assets, Current
758.7 
658.6 
 
 
Properties, net
26.4 
27.6 
 
 
Investments in and Advance to Affiliates, Subsidiaries, Associates, and Joint Ventures
8,163.6 
7,925.2 
 
 
Deferred tax assets
28.8 
33.1 
 
 
Other assets, net
20.9 
19.8 
 
 
Assets
8,998.4 
8,664.3 
 
 
Accounts payable
8.1 
7.3 
 
 
Accrued expenses and other liabilities, net
35.7 
34.6 
 
 
Deferred tax liabilities
6.5 
6.2 
 
 
Accounts Payable, Related Parties, Current
584.5 
413.8 
 
 
Total current liabilities
634.8 
461.9 
 
 
Long-term debt
550.6 
546.2 
 
 
Pension and post-retirement benefits
0 
 
 
 
Other liabilities, net
5.7 
8.3 
 
 
Liabilities
1,191.1 
1,016.4 
 
 
Total Molson Coors Brewing Company stockholders' equity
8,021.5 
8,267.8 
 
 
Notes Receivable, Related Parties, Noncurrent
(214.2)
619.9 
 
 
Total stockholders' equity
7,807.3 
7,647.9 
 
 
Total equity
7,807.3 
7,647.9 
 
 
Total liabilities and equity
8,998.4 
8,664.3 
 
 
Issuer 2002 [Member]
 
 
 
 
Cash and cash equivalents
0 
0 
0 
7.0 
Accounts receivable, net
6.6 
6.7 
 
 
Other assets, net
4.0 
4.0 
 
 
Deferred tax assets
11.4 
5.8 
 
 
Intercompany accounts receivable
166.4 
49.1 
 
 
Assets, Current
188.4 
65.6 
 
 
Properties, net
7.0 
7.2 
 
 
Goodwill
11.4 
11.4 
 
 
Other intangibles, net
37.2 
37.2 
 
 
Investments in and Advance to Affiliates, Subsidiaries, Associates, and Joint Ventures
5,586.9 
5,686.2 
 
 
Deferred tax assets
103.7 
119.1 
 
 
Other assets, net
13.8 
14.7 
 
 
Assets
5,948.4 
5,941.4 
 
 
Accounts payable
2.3 
3.2 
 
 
Accrued expenses and other liabilities, net
5.5 
4.7 
 
 
Derivative hedging instruments
2.2 
101.4 
 
 
Deferred tax liabilities
 
0 
 
 
Debt, Current
44.6 
44.7 
 
 
Accounts Payable, Related Parties, Current
9.0 
26.1 
 
 
Total current liabilities
63.6 
180.1 
 
 
Derivative hedging instruments
220.9 
210.7 
 
 
Pension and post-retirement benefits
2.8 
2.7 
 
 
Other liabilities, net
14.7 
14.5 
 
 
Notes Payable, Related Parties, Noncurrent
(212.3)
618.0 
 
 
Liabilities
514.3 
1,026.0 
 
 
Total Molson Coors Brewing Company stockholders' equity
5,476.3 
4,954.7 
 
 
Notes Receivable, Related Parties, Noncurrent
42.2 
39.3 
 
 
Total stockholders' equity
5,434.1 
4,915.4 
 
 
Total equity
5,434.1 
4,915.4 
 
 
Total liabilities and equity
5,948.4 
5,941.4 
 
 
Issuer 2002 [Member] |
Recast [Member]
 
 
 
 
Cash and cash equivalents
0 
0 
0 
7.0 
Accounts receivable, net
6.6 
6.7 
 
 
Other assets, net
4.0 
4.0 
 
 
Deferred tax assets
11.4 
5.8 
 
 
Intercompany accounts receivable
166.4 
49.1 
 
 
Assets, Current
188.4 
65.6 
 
 
Properties, net
7.0 
7.2 
 
 
Goodwill
11.4 
11.4 
 
 
Other intangibles, net
37.2 
37.2 
 
 
Investments in and Advance to Affiliates, Subsidiaries, Associates, and Joint Ventures
5,586.9 
5,686.2 
 
 
Deferred tax assets
103.7 
119.1 
 
 
Other assets, net
13.8 
14.7 
 
 
Assets
5,948.4 
5,941.4 
 
 
Accounts payable
2.3 
3.2 
 
 
Accrued expenses and other liabilities, net
5.5 
4.7 
 
 
Derivative hedging instruments
2.2 
101.4 
 
 
Deferred tax liabilities
 
0 
 
 
Debt, Current
44.6 
44.7 
 
 
Accounts Payable, Related Parties, Current
9.0 
26.1 
 
 
Total current liabilities
63.6 
180.1 
 
 
Derivative hedging instruments
220.9 
210.7 
 
 
Pension and post-retirement benefits
2.8 
2.7 
 
 
Other liabilities, net
14.7 
14.5 
 
 
Notes Payable, Related Parties, Noncurrent
(212.3)
618.0 
 
 
Liabilities
514.3 
1,026.0 
 
 
Total Molson Coors Brewing Company stockholders' equity
5,476.3 
4,954.7 
 
 
Notes Receivable, Related Parties, Noncurrent
42.2 
39.3 
 
 
Total stockholders' equity
5,434.1 
4,915.4 
 
 
Total equity
5,434.1 
4,915.4 
 
 
Total liabilities and equity
5,948.4 
5,941.4 
 
 
Subsidiary Guarantors
 
 
 
 
Cash and cash equivalents
64.3 
318.0 
167.8 
190.1 
Accounts receivable, net
172.6 
203.6 
 
 
Other Receivables
23.5 
29.1 
 
 
Inventory, Net
101.7 
83.0 
 
 
Other assets, net
62.4 
44.7 
 
 
Intercompany accounts receivable
1,017.2 
1,449.6 
 
 
Assets, Current
1,441.7 
2,128.0 
 
 
Properties, net
877.3 
862.9 
 
 
Goodwill
312.3 
305.4 
 
 
Other intangibles, net
4,237.5 
4,150.8 
 
 
Investment in MillerCoors
2,613.1 
2,487.9 
 
 
Investments in and Advance to Affiliates, Subsidiaries, Associates, and Joint Ventures
377.3 
611.5 
 
 
Deferred tax assets
11.0 
12.7 
 
 
Other assets, net
94.2 
92.9 
 
 
Assets
9,964.4 
10,652.1 
 
 
Accounts payable
73.2 
100.6 
 
 
Accrued expenses and other liabilities, net
237.3 
270.4 
 
 
Derivative hedging instruments
8.0 
4.7 
 
 
Deferred tax liabilities
168.9 
161.4 
 
 
Accounts Payable, Related Parties, Current
868.7 
1,566.5 
 
 
Total current liabilities
1,356.1 
2,103.6 
 
 
Long-term debt
1,399.8 
1,368.7 
 
 
Derivative hedging instruments
1.4 
1.5 
 
 
Pension and post-retirement benefits
399.7 
392.5 
 
 
Other liabilities, net
32.8 
35.3 
 
 
Liabilities
3,189.8 
3,901.6 
 
 
Total Molson Coors Brewing Company stockholders' equity
11,677.7 
11,675.6 
 
 
Notes Receivable, Related Parties, Noncurrent
4,903.1 
4,925.1 
 
 
Total stockholders' equity
6,774.6 
6,750.5 
 
 
Total equity
6,774.6 
6,750.5 
 
 
Total liabilities and equity
9,964.4 
10,652.1 
 
 
Subsidiary Guarantors |
Recast [Member]
 
 
 
 
Cash and cash equivalents
118.9 
422.5 
255.6 
342.5 
Accounts receivable, net
473.9 
544.1 
 
 
Other Receivables
67.7 
84.0 
 
 
Inventory, Net
240.2 
193.0 
 
 
Other assets, net
80.9 
70.2 
 
 
Intercompany accounts receivable
1,054.5 
1,470.9 
 
 
Assets, Current
2,036.1 
2,784.7 
 
 
Properties, net
1,330.5 
1,306.8 
 
 
Goodwill
1,049.9 
1,021.6 
 
 
Other intangibles, net
4,584.0 
4,488.1 
 
 
Investment in MillerCoors
2,613.1 
2,487.9 
 
 
Investments in and Advance to Affiliates, Subsidiaries, Associates, and Joint Ventures
775.9 
1,071.9 
 
 
Deferred tax assets
28.4 
30.1 
 
 
Other assets, net
142.1 
140.9 
 
 
Assets
12,560.0 
13,332.0 
 
 
Accounts payable
169.4 
252.9 
 
 
Accrued expenses and other liabilities, net
529.1 
575.2 
 
 
Derivative hedging instruments
9.2 
6.2 
 
 
Deferred tax liabilities
168.9 
161.4 
 
 
Accounts Payable, Related Parties, Current
941.1 
1,618.5 
 
 
Total current liabilities
1,817.7 
2,614.2 
 
 
Long-term debt
1,399.8 
1,368.7 
 
 
Derivative hedging instruments
1.7 
1.8 
 
 
Pension and post-retirement benefits
701.9 
690.9 
 
 
Other liabilities, net
35.1 
38.5 
 
 
Notes Payable, Related Parties, Noncurrent
(912.5)
886.0 
 
 
Liabilities
4,868.7 
5,600.1 
 
 
Total Molson Coors Brewing Company stockholders' equity
12,601.7 
12,664.1 
 
 
Notes Receivable, Related Parties, Noncurrent
4,910.4 
4,932.2 
 
 
Total stockholders' equity
7,691.3 
7,731.9 
 
 
Total equity
7,691.3 
7,731.9 
 
 
Total liabilities and equity
12,560.0 
13,332.0 
 
 
Subsidiary Non-Guarantors
 
 
 
 
Cash and cash equivalents
91.4 
159.8 
121.6 
188.5 
Accounts receivable, net
331.3 
377.6 
 
 
Other Receivables
45.4 
61.2 
 
 
Inventory, Net
154.7 
124.2 
 
 
Other assets, net
31.5 
35.6 
 
 
Deferred tax assets
21.3 
12.1 
 
 
Discontinued operations
0.3 
0.3 
 
 
Intercompany accounts receivable
857.9 
1,537.3 
 
 
Assets, Current
1,533.8 
2,308.1 
 
 
Properties, net
544.6 
532.4 
 
 
Goodwill
1,167.8 
1,136.5 
 
 
Other intangibles, net
408.1 
398.0 
 
 
Investments in and Advance to Affiliates, Subsidiaries, Associates, and Joint Ventures
4,927.4 
4,774.0 
 
 
Deferred tax assets
0 
1.9 
 
 
Other assets, net
61.9 
71.2 
 
 
Assets
8,643.6 
9,222.1 
 
 
Accounts payable
122.6 
190.1 
 
 
Accrued expenses and other liabilities, net
333.5 
337.1 
 
 
Derivative hedging instruments
1.2 
1.5 
 
 
Debt, Current
3.6 
2.2 
 
 
Discontinued operations
13.7 
13.4 
 
 
Accounts Payable, Related Parties, Current
579.3 
1,029.6 
 
 
Total current liabilities
1,053.9 
1,573.9 
 
 
Derivative hedging instruments
0.3 
0.3 
 
 
Pension and post-retirement benefits
305.6 
302.3 
 
 
Deferred tax liabilities
489.9 
472.5 
 
 
Other liabilities, net
96.7 
95.8 
 
 
Discontinued operations
22.4 
22.0 
 
 
Notes Payable, Related Parties, Noncurrent
(4,947.2)
4,966.3 
 
 
Liabilities
6,916.0 
7,433.1 
 
 
Total Molson Coors Brewing Company stockholders' equity
1,687.0 
1,746.7 
 
 
Total stockholders' equity
1,687.0 
1,746.7 
 
 
Noncontrolling interests
40.6 
42.3 
 
 
Total equity
1,727.6 
1,789.0 
 
 
Total liabilities and equity
8,643.6 
9,222.1 
 
 
Subsidiary Non-Guarantors |
Recast [Member]
 
 
 
 
Cash and cash equivalents
36.8 
55.3 
33.8 
36.1 
Accounts receivable, net
30.0 
37.1 
 
 
Other Receivables
1.2 
6.3 
 
 
Inventory, Net
16.2 
14.2 
 
 
Other assets, net
13.0 
10.1 
 
 
Deferred tax assets
21.3 
12.1 
 
 
Discontinued operations
0.3 
0.3 
 
 
Intercompany accounts receivable
937.4 
1,612.9 
 
 
Assets, Current
1,056.2 
1,748.3 
 
 
Properties, net
91.4 
88.5 
 
 
Goodwill
430.2 
420.3 
 
 
Other intangibles, net
61.6 
60.7 
 
 
Investments in and Advance to Affiliates, Subsidiaries, Associates, and Joint Ventures
5,522.0 
5,363.3 
 
 
Deferred tax assets
0 
2.3 
 
 
Other assets, net
14.0 
23.2 
 
 
Assets
7,175.4 
7,706.6 
 
 
Accounts payable
26.4 
37.8 
 
 
Accrued expenses and other liabilities, net
41.7 
32.3 
 
 
Derivative hedging instruments
0 
0 
 
 
Debt, Current
3.6 
2.2 
 
 
Discontinued operations
13.7 
13.4 
 
 
Accounts Payable, Related Parties, Current
623.7 
1,074.5 
 
 
Total current liabilities
709.1 
1,160.2 
 
 
Derivative hedging instruments
0 
0 
 
 
Pension and post-retirement benefits
3.4 
3.9 
 
 
Deferred tax liabilities
507.3 
490.3 
 
 
Other liabilities, net
94.4 
92.6 
 
 
Discontinued operations
22.4 
22.0 
 
 
Notes Payable, Related Parties, Noncurrent
(4,954.5)
4,971.6 
 
 
Liabilities
6,291.1 
6,740.6 
 
 
Total Molson Coors Brewing Company stockholders' equity
1,756.2 
1,807.9 
 
 
Notes Receivable, Related Parties, Noncurrent
912.5 
884.2 
 
 
Total stockholders' equity
843.7 
923.7 
 
 
Noncontrolling interests
40.6 
42.3 
 
 
Total equity
884.3 
966.0 
 
 
Total liabilities and equity
7,175.4 
7,706.6 
 
 
Eliminations
 
 
 
 
Cash and cash equivalents
0 
 
0 
 
Other Receivables
(0.6)
 
 
 
Deferred tax assets
(6.3)
(6.3)
 
 
Intercompany accounts receivable
(2,041.5)
(3,036.0)
 
 
Assets, Current
(2,048.4)
(3,042.3)
 
 
Investments in and Advance to Affiliates, Subsidiaries, Associates, and Joint Ventures
(19,055.2)
(18,996.9)
 
 
Deferred tax assets
(15.0)
(16.9)
 
 
Assets
(21,118.6)
(22,056.1)
 
 
Accounts payable
(0.6)
 
 
 
Deferred tax liabilities
(6.3)
(6.3)
 
 
Accounts Payable, Related Parties, Current
(2,041.5)
(3,036.0)
 
 
Total current liabilities
(2,048.4)
(3,042.3)
 
 
Pension and post-retirement benefits
0 
 
 
 
Deferred tax liabilities
(15.0)
(16.9)
 
 
Notes Payable, Related Parties, Noncurrent
5,159.5 
(5,584.3)
 
 
Liabilities
(7,222.9)
(8,643.5)
 
 
Total Molson Coors Brewing Company stockholders' equity
(19,055.2)
(18,996.9)
 
 
Notes Receivable, Related Parties, Noncurrent
(5,159.5)
(5,584.3)
 
 
Total stockholders' equity
(13,895.7)
(13,412.6)
 
 
Total equity
(13,895.7)
(13,412.6)
 
 
Total liabilities and equity
(21,118.6)
(22,056.1)
 
 
Eliminations |
Recast [Member]
 
 
 
 
Cash and cash equivalents
0 
 
0 
 
Other Receivables
(0.6)
 
 
 
Deferred tax assets
(6.3)
(6.3)
 
 
Intercompany accounts receivable
(2,158.3)
(3,132.9)
 
 
Assets, Current
(2,165.2)
(3,139.2)
 
 
Investments in and Advance to Affiliates, Subsidiaries, Associates, and Joint Ventures
(20,048.4)
(20,046.6)
 
 
Deferred tax assets
(32.4)
(34.7)
 
 
Assets
(22,246.0)
(23,220.5)
 
 
Accounts payable
(0.6)
 
 
 
Deferred tax liabilities
(6.3)
(6.3)
 
 
Accounts Payable, Related Parties, Current
(2,158.3)
(3,132.9)
 
 
Total current liabilities
(2,165.2)
(3,139.2)
 
 
Pension and post-retirement benefits
0 
 
 
 
Deferred tax liabilities
(32.4)
 
 
 
Notes Payable, Related Parties, Noncurrent
6,079.3 
(6,475.6)
 
 
Liabilities
(8,276.9)
(9,649.5)
 
 
Total Molson Coors Brewing Company stockholders' equity
(20,048.4)
(20,046.6)
 
 
Notes Receivable, Related Parties, Noncurrent
(6,079.3)
(6,475.6)
 
 
Total stockholders' equity
(13,969.1)
(13,571.0)
 
 
Total equity
(13,969.1)
(13,571.0)
 
 
Total liabilities and equity
(22,246.0)
(23,220.5)
 
 
Consolidated [Member]
 
 
 
 
Cash and cash equivalents
836.3 
1,078.9 
1,081.7 
1,217.6 
Accounts receivable, net
512.4 
588.8 
 
 
Other Receivables
133.7 
137.2 
 
 
Inventory, Net
256.4 
207.2 
 
 
Other assets, net
108.7 
94.0 
 
 
Deferred tax assets
26.4 
11.6 
 
 
Discontinued operations
0.3 
0.3 
 
 
Assets, Current
1,874.2 
2,118.0 
 
 
Properties, net
1,455.3 
1,430.1 
 
 
Goodwill
1,491.5 
1,453.3 
 
 
Other intangibles, net
4,682.8 
4,586.0 
 
 
Investment in MillerCoors
2,613.1 
2,487.9 
 
 
Deferred tax assets
128.5 
149.9 
 
 
Other assets, net
190.8 
198.6 
 
 
Assets
12,436.2 
12,423.8 
 
 
Accounts payable
205.6 
301.2 
 
 
Accrued expenses and other liabilities, net
612.0 
646.8 
 
 
Derivative hedging instruments
11.4 
107.6 
 
 
Deferred tax liabilities
169.1 
161.3 
 
 
Debt, Current
48.2 
46.9 
 
 
Discontinued operations
13.7 
13.4 
 
 
Total current liabilities
1,060.0 
1,277.2 
 
 
Long-term debt
1,950.4 
1,914.9 
 
 
Derivative hedging instruments
222.6 
212.5 
 
 
Pension and post-retirement benefits
708.1 
697.5 
 
 
Deferred tax liabilities
474.9 
455.6 
 
 
Other liabilities, net
149.9 
153.9 
 
 
Discontinued operations
22.4 
22.0 
 
 
Liabilities
4,588.3 
4,733.6 
 
 
Total Molson Coors Brewing Company stockholders' equity
7,807.3 
7,647.9 
 
 
Total stockholders' equity
7,807.3 
7,647.9 
 
 
Noncontrolling interests
40.6 
42.3 
 
 
Total equity
7,847.9 
7,690.2 
 
 
Total liabilities and equity
12,436.2 
12,423.8 
 
 
Consolidated [Member] |
Recast [Member]
 
 
 
 
Cash and cash equivalents
836.3 
1,078.9 
1,081.7 
1,217.6 
Accounts receivable, net
512.4 
588.8 
 
 
Other Receivables
133.7 
137.2 
 
 
Inventory, Net
256.4 
207.2 
 
 
Other assets, net
108.7 
94.0 
 
 
Deferred tax assets
26.4 
11.6 
 
 
Discontinued operations
0.3 
0.3 
 
 
Assets, Current
1,874.2 
2,118.0 
 
 
Properties, net
1,455.3 
1,430.1 
 
 
Goodwill
1,491.5 
1,453.3 
 
 
Other intangibles, net
4,682.8 
4,586.0 
 
 
Investment in MillerCoors
2,613.1 
2,487.9 
 
 
Deferred tax assets
128.5 
149.9 
 
 
Other assets, net
190.8 
198.6 
 
 
Assets
12,436.2 
12,423.8 
 
 
Accounts payable
205.6 
301.2 
 
 
Accrued expenses and other liabilities, net
612.0 
646.8 
 
 
Derivative hedging instruments
11.4 
107.6 
 
 
Deferred tax liabilities
169.1 
161.3 
 
 
Debt, Current
48.2 
46.9 
 
 
Discontinued operations
13.7 
13.4 
 
 
Total current liabilities
1,060.0 
1,277.2 
 
 
Long-term debt
1,950.4 
1,914.9 
 
 
Derivative hedging instruments
222.6 
212.5 
 
 
Pension and post-retirement benefits
708.1 
697.5 
 
 
Deferred tax liabilities
474.9 
455.6 
 
 
Other liabilities, net
149.9 
153.9 
 
 
Discontinued operations
22.4 
22.0 
 
 
Liabilities
4,588.3 
4,733.6 
 
 
Total Molson Coors Brewing Company stockholders' equity
7,807.3 
7,647.9 
 
 
Total stockholders' equity
7,807.3 
7,647.9 
 
 
Noncontrolling interests
40.6 
42.3 
 
 
Total equity
7,847.9 
7,690.2 
 
 
Total liabilities and equity
$ 12,436.2 
$ 12,423.8 
 
 
Supplemental Guarantor Information Recast Cash Flow (Details) (USD $)
In Millions, unless otherwise specified
3 Months Ended
Mar. 31, 2012
Mar. 26, 2011
Net Cash Provided by (Used in) Operating Activities
$ 50.4 
$ 45.0 
Cash flows from investing activities:
 
 
Payments to Acquire Productive Assets
(33.8)
(34.3)
Proceeds from sales of properties and intangible assets
0.8 
1.2 
Payments to Acquire Businesses, Net of Cash Acquired
0 
(29.4)
Payments To Invest In Equity Method Investment
(236.0)
(277.2)
Proceeds from settlements of derivative instruments
0 
15.4 
Payments for (Proceeds from) Businesses and Interest in Affiliates
(4.6)
0 
Trade loan repayments from customers
3.8 
3.7 
Payments to Acquire Loans Receivable
(2.4)
(2.6)
Payments for (Proceeds from) Other Investing Activities
0 
1.1 
Net cash used in investing activities
(258.2)
(144.6)
Cash flows from financing activities:
 
 
Proceeds from Stock Plans
19.7 
4.3 
Excess tax benefits from share-based compensation
3.3 
0.8 
Payments of Dividends
(57.8)
(52.1)
Payments of Dividends, Noncontrolling Interest
(1.7)
0 
Debt issuance costs
0.1 
0 
Net (payments) proceeds from revolving credit facilities
1.5 
0.4 
Net cash used in financing activities
(45.9)
(50.1)
Net increase (decrease) in cash and cash equivalents
(253.7)
(149.7)
Effect of Exchange Rate on Cash and Cash Equivalents
11.1 
13.8 
Balance at beginning of year
1,078.9 
1,217.6 
Balance at end of period
836.3 
1,081.7 
Parent Company [Member]
 
 
Net Cash Provided by (Used in) Operating Activities
155.3 
(22.6)
Cash flows from investing activities:
 
 
Payments to Acquire Productive Assets
(1.1)
(0.9)
Payments for (Proceeds from) Businesses and Interest in Affiliates
 
15.4 
Payments for Proceeds from Intercompany, Investing Activities
(39.9)
0.2 
Net cash used in investing activities
(41.0)
14.7 
Cash flows from financing activities:
 
 
Proceeds from Stock Plans
19.7 
4.3 
Excess tax benefits from share-based compensation
3.3 
0.8 
Payments of Dividends
(57.8)
(46.2)
Payments for Proceeds from Intercompany, Financing Activities
 
9.3 
Net cash used in financing activities
(34.8)
(31.8)
Net increase (decrease) in cash and cash equivalents
79.5 
(39.7)
Effect of Exchange Rate on Cash and Cash Equivalents
 
0 
Balance at beginning of year
601.1 
832.0 
Balance at end of period
680.6 
792.3 
Parent Company [Member] |
Recast [Member]
 
 
Net Cash Provided by (Used in) Operating Activities
155.3 
(22.6)
Cash flows from investing activities:
 
 
Payments to Acquire Productive Assets
(1.1)
(0.9)
Payments for (Proceeds from) Businesses and Interest in Affiliates
 
15.4 
Payments for Proceeds from Intercompany, Investing Activities
(39.9)
0.2 
Net cash used in investing activities
(41.0)
14.7 
Cash flows from financing activities:
 
 
Proceeds from Stock Plans
19.7 
4.3 
Excess tax benefits from share-based compensation
3.3 
0.8 
Payments of Dividends
(57.8)
(46.2)
Payments for Proceeds from Intercompany, Financing Activities
 
9.3 
Net cash used in financing activities
(34.8)
(31.8)
Net increase (decrease) in cash and cash equivalents
79.5 
(39.7)
Effect of Exchange Rate on Cash and Cash Equivalents
 
0 
Balance at beginning of year
601.1 
832.0 
Balance at end of period
680.6 
792.3 
Issuer 2002 [Member]
 
 
Net Cash Provided by (Used in) Operating Activities
180.9 
(5.2)
Cash flows from investing activities:
 
 
Proceeds from settlements of derivative instruments
(110.6)
 
Payments for Proceeds from Intercompany, Investing Activities
(110.1)
(1.8)
Net cash used in investing activities
(220.7)
(1.8)
Cash flows from financing activities:
 
 
Payments for Proceeds from Intercompany, Financing Activities
39.8 
0 
Net cash used in financing activities
39.8 
0 
Net increase (decrease) in cash and cash equivalents
0 
(7.0)
Effect of Exchange Rate on Cash and Cash Equivalents
 
0 
Balance at beginning of year
0 
7.0 
Balance at end of period
0 
0 
Issuer 2002 [Member] |
Recast [Member]
 
 
Net Cash Provided by (Used in) Operating Activities
180.9 
(5.2)
Cash flows from investing activities:
 
 
Proceeds from settlements of derivative instruments
(110.6)
 
Payments for Proceeds from Intercompany, Investing Activities
(110.1)
(1.8)
Net cash used in investing activities
(220.7)
(1.8)
Cash flows from financing activities:
 
 
Payments for Proceeds from Intercompany, Financing Activities
39.8 
0 
Net cash used in financing activities
39.8 
0 
Net increase (decrease) in cash and cash equivalents
0 
(7.0)
Effect of Exchange Rate on Cash and Cash Equivalents
 
0 
Balance at beginning of year
0 
7.0 
Balance at end of period
0 
0 
Subsidiary Guarantors
 
 
Net Cash Provided by (Used in) Operating Activities
(253.9)
32.8 
Cash flows from investing activities:
 
 
Payments to Acquire Productive Assets
(19.1)
(19.4)
Payments To Invest In Equity Method Investment
(236.0)
(277.2)
Return of Capital from Subsidiary
124.6 
177.5 
Payments for (Proceeds from) Other Investing Activities
 
0.2 
Payments for Proceeds from Intercompany, Investing Activities
126.4 
0 
Net cash used in investing activities
(4.1)
(118.9)
Cash flows from financing activities:
 
 
Payments of Dividends
(104.0)
 
Debt issuance costs
0.1 
 
Payments for Proceeds from Intercompany, Financing Activities
100.0 
58.5 
Net cash used in financing activities
(4.1)
58.5 
Net increase (decrease) in cash and cash equivalents
(262.1)
(27.6)
Effect of Exchange Rate on Cash and Cash Equivalents
8.4 
5.3 
Balance at beginning of year
318.0 
190.1 
Balance at end of period
64.3 
167.8 
Subsidiary Guarantors |
Recast [Member]
 
 
Net Cash Provided by (Used in) Operating Activities
(293.1)
10.6 
Cash flows from investing activities:
 
 
Payments to Acquire Productive Assets
(29.6)
(32.4)
Proceeds from sales of properties and intangible assets
0.8 
1.2 
Payments to Acquire Businesses, Net of Cash Acquired
 
29.4 
Payments To Invest In Equity Method Investment
(236.0)
(277.2)
Return of Capital from Subsidiary
124.6 
177.5 
Payments for (Proceeds from) Businesses and Interest in Affiliates
2.5 
 
Trade loan repayments from customers
3.8 
3.7 
Payments to Acquire Loans Receivable
2.4 
2.6 
Payments for (Proceeds from) Other Investing Activities
 
0.2 
Payments for Proceeds from Intercompany, Investing Activities
126.4 
0 
Net cash used in investing activities
(14.9)
(159.0)
Cash flows from financing activities:
 
 
Payments of Dividends
(104.0)
 
Payments of Dividends, Noncontrolling Interest
(1.7)
 
Debt issuance costs
(0.1)
 
Changes in Short-term Borrowings and Overdraft Balances
 
(10.3)
Payments for Proceeds from Intercompany, Financing Activities
100.0 
58.5 
Net cash used in financing activities
(5.8)
48.2 
Net increase (decrease) in cash and cash equivalents
(313.8)
(100.2)
Effect of Exchange Rate on Cash and Cash Equivalents
10.2 
13.3 
Balance at beginning of year
422.5 
342.5 
Balance at end of period
118.9 
255.6 
Subsidiary Non-Guarantors
 
 
Net Cash Provided by (Used in) Operating Activities
72.1 
40.0 
Cash flows from investing activities:
 
 
Payments to Acquire Productive Assets
(13.6)
(14.0)
Proceeds from sales of properties and intangible assets
0.8 
1.2 
Payments to Acquire Businesses, Net of Cash Acquired
 
(29.4)
Payments for (Proceeds from) Businesses and Interest in Affiliates
(4.6)
 
Trade loan repayments from customers
3.8 
3.7 
Payments to Acquire Loans Receivable
(2.4)
(2.6)
Payments for (Proceeds from) Other Investing Activities
 
0.9 
Payments for Proceeds from Intercompany, Investing Activities
 
44.3 
Net cash used in investing activities
(16.0)
4.1 
Cash flows from financing activities:
 
 
Payments of Dividends
 
(5.9)
Payments of Dividends, Noncontrolling Interest
(1.7)
 
Proceeds from (Repayments of) Short-term Debt
(10.8)
6.8 
Net (payments) proceeds from revolving credit facilities
1.5 
0.4 
Changes in Short-term Borrowings and Overdraft Balances
 
(10.3)
Payments for Proceeds from Intercompany, Financing Activities
(116.2)
(110.5)
Net cash used in financing activities
(127.2)
(119.5)
Net increase (decrease) in cash and cash equivalents
(71.1)
(75.4)
Effect of Exchange Rate on Cash and Cash Equivalents
2.7 
8.5 
Balance at beginning of year
159.8 
188.5 
Balance at end of period
91.4 
121.6 
Subsidiary Non-Guarantors |
Recast [Member]
 
 
Net Cash Provided by (Used in) Operating Activities
111.3 
62.2 
Cash flows from investing activities:
 
 
Payments to Acquire Productive Assets
(3.1)
(1.0)
Proceeds from sales of properties and intangible assets
0 
0 
Payments to Acquire Businesses, Net of Cash Acquired
 
0 
Payments for (Proceeds from) Businesses and Interest in Affiliates
2.1 
 
Trade loan repayments from customers
0 
0 
Payments to Acquire Loans Receivable
0 
0 
Payments for (Proceeds from) Other Investing Activities
 
0.9 
Payments for Proceeds from Intercompany, Investing Activities
 
44.3 
Net cash used in investing activities
(5.2)
44.2 
Cash flows from financing activities:
 
 
Payments of Dividends
 
(5.9)
Payments of Dividends, Noncontrolling Interest
0 
 
Proceeds from (Repayments of) Short-term Debt
(10.8)
6.8 
Net (payments) proceeds from revolving credit facilities
1.5 
0.4 
Changes in Short-term Borrowings and Overdraft Balances
 
0 
Payments for Proceeds from Intercompany, Financing Activities
(116.2)
(110.5)
Net cash used in financing activities
(125.5)
(109.2)
Net increase (decrease) in cash and cash equivalents
(19.4)
(2.8)
Effect of Exchange Rate on Cash and Cash Equivalents
0.9 
0.5 
Balance at beginning of year
55.3 
36.1 
Balance at end of period
36.8 
33.8 
Eliminations
 
 
Net Cash Provided by (Used in) Operating Activities
(104.0)
0 
Cash flows from investing activities:
 
 
Payments for Proceeds from Intercompany, Investing Activities
23.6 
(42.7)
Net cash used in investing activities
23.6 
(42.7)
Cash flows from financing activities:
 
 
Payments of Dividends
104.0 
 
Payments for Proceeds from Intercompany, Financing Activities
(23.6)
42.7 
Net cash used in financing activities
80.4 
42.7 
Balance at end of period
0 
0 
Eliminations |
Recast [Member]
 
 
Net Cash Provided by (Used in) Operating Activities
(104.0)
0 
Cash flows from investing activities:
 
 
Payments for Proceeds from Intercompany, Investing Activities
23.6 
(42.7)
Net cash used in investing activities
23.6 
(42.7)
Cash flows from financing activities:
 
 
Payments of Dividends
(104.0)
 
Payments for Proceeds from Intercompany, Financing Activities
(23.6)
42.7 
Net cash used in financing activities
80.4 
42.7 
Balance at end of period
0 
0 
Consolidated [Member]
 
 
Net Cash Provided by (Used in) Operating Activities
50.4 
45.0 
Cash flows from investing activities:
 
 
Payments to Acquire Productive Assets
(33.8)
(34.3)
Proceeds from sales of properties and intangible assets
0.8 
1.2 
Payments to Acquire Businesses, Net of Cash Acquired
 
(29.4)
Payments To Invest In Equity Method Investment
(236.0)
(277.2)
Return of Capital from Subsidiary
124.6 
177.5 
Proceeds from settlements of derivative instruments
(110.6)
 
Payments for (Proceeds from) Businesses and Interest in Affiliates
(4.6)
15.4 
Trade loan repayments from customers
3.8 
3.7 
Payments to Acquire Loans Receivable
(2.4)
(2.6)
Payments for (Proceeds from) Other Investing Activities
 
1.1 
Payments for Proceeds from Intercompany, Investing Activities
 
0 
Net cash used in investing activities
(258.2)
(144.6)
Cash flows from financing activities:
 
 
Proceeds from Stock Plans
19.7 
 
Excess tax benefits from share-based compensation
3.3 
4.3 
Payments of Dividends
(57.8)
(0.8)
Payments of Dividends, Noncontrolling Interest
(1.7)
52.1 
Debt issuance costs
0.1 
 
Proceeds from (Repayments of) Short-term Debt
(10.8)
6.8 
Net (payments) proceeds from revolving credit facilities
1.5 
0.4 
Changes in Short-term Borrowings and Overdraft Balances
 
(10.3)
Payments for Proceeds from Intercompany, Financing Activities
 
0 
Net cash used in financing activities
(45.9)
(50.1)
Net increase (decrease) in cash and cash equivalents
(253.7)
(149.7)
Effect of Exchange Rate on Cash and Cash Equivalents
11.1 
13.8 
Balance at beginning of year
1,078.9 
1,217.6 
Balance at end of period
836.3 
1,081.7 
Consolidated [Member] |
Recast [Member]
 
 
Net Cash Provided by (Used in) Operating Activities
50.4 
45.0 
Cash flows from investing activities:
 
 
Payments to Acquire Productive Assets
(33.8)
(34.3)
Proceeds from sales of properties and intangible assets
0.8 
1.2 
Payments to Acquire Businesses, Net of Cash Acquired
 
(29.4)
Payments To Invest In Equity Method Investment
(236.0)
(277.2)
Return of Capital from Subsidiary
124.6 
177.5 
Proceeds from settlements of derivative instruments
(110.6)
 
Payments for (Proceeds from) Businesses and Interest in Affiliates
(4.6)
15.4 
Trade loan repayments from customers
3.8 
3.7 
Payments to Acquire Loans Receivable
(2.4)
(2.6)
Payments for (Proceeds from) Other Investing Activities
 
1.1 
Payments for Proceeds from Intercompany, Investing Activities
 
0 
Net cash used in investing activities
(258.2)
(144.6)
Cash flows from financing activities:
 
 
Proceeds from Stock Plans
19.7 
4.3 
Excess tax benefits from share-based compensation
3.3 
0.8 
Payments of Dividends
(57.8)
(52.1)
Payments of Dividends, Noncontrolling Interest
(1.7)
 
Debt issuance costs
(0.1)
 
Proceeds from (Repayments of) Short-term Debt
(10.8)
6.8 
Net (payments) proceeds from revolving credit facilities
1.5 
0.4 
Changes in Short-term Borrowings and Overdraft Balances
 
(10.3)
Payments for Proceeds from Intercompany, Financing Activities
 
0 
Net cash used in financing activities
(45.9)
(50.1)
Net increase (decrease) in cash and cash equivalents
(253.7)
(149.7)
Effect of Exchange Rate on Cash and Cash Equivalents
11.1 
13.8 
Balance at beginning of year
1,078.9 
1,217.6 
Balance at end of period
$ 836.3 
$ 1,081.7 
Subsequent Events (Details)
0 Months Ended 3 Months Ended 3 Months Ended 0 Months Ended 12 Months Ended
Nov. 2, 2012
Mar. 31, 2012
USD ($)
Mar. 26, 2011
USD ($)
Apr. 3, 2012
USD ($)
Jun. 30, 2007
USD ($)
Apr. 3, 2012
Term Loan Agreement [Member]
USD ($)
Apr. 3, 2012
Revolving Credit [Member]
USD ($)
Mar. 31, 2012
Parent Company [Member]
USD ($)
Mar. 26, 2011
Parent Company [Member]
USD ($)
May 3, 2012
Senior Notes Due 2017 $300M 2.0% [Member]
Parent Company [Member]
Senior Notes [Member]
USD ($)
May 3, 2012
Senior Notes Due 2022 $500M 3.5% [Member]
Parent Company [Member]
Senior Notes [Member]
USD ($)
May 3, 2012
Senior Notes Due 2042 $1.1B 5.0% [Member]
Parent Company [Member]
Senior Notes [Member]
USD ($)
Apr. 3, 2012
Sales Purchase Agreement [Member]
USD ($)
Apr. 3, 2012
Sales Purchase Agreement [Member]
EUR (€)
Apr. 3, 2012
Sales Purchase Agreement [Member]
Convertible Notes Payable [Member]
EUR (€)
May 3, 2012
Sales Purchase Agreement [Member]
Parent Company [Member]
Senior Notes [Member]
USD ($)
May 3, 2012
Sales Purchase Agreement [Member]
Minimum [Member]
Parent Company [Member]
Senior Notes [Member]
USD ($)
Apr. 3, 2012
Sales Purchase Agreement [Member]
Minimum [Member]
Parent Company [Member]
Senior Notes [Member]
USD ($)
May 3, 2012
Sales Purchase Agreement [Member]
Maximum [Member]
Parent Company [Member]
Senior Notes [Member]
USD ($)
Apr. 3, 2012
Sales Purchase Agreement [Member]
Maximum [Member]
Parent Company [Member]
Senior Notes [Member]
USD ($)
Apr. 3, 2012
Sales Purchase Agreement [Member]
Class B common stock, non-voting
Convertible Notes Payable [Member]
Dec. 31, 2011
IFRS [Member]
Sales Purchase Agreement [Member]
USD ($)
Subsequent Event [Line Items]
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Sales
 
$ 1,008,100,000 
$ 997,300,000 
 
 
 
 
$ 5,500,000 
$ 5,800,000 
 
 
 
 
 
 
 
 
 
 
 
 
$ 953,000,000 
Earnings Before Interest Taxes Depreciation And Amortization
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
322,000,000 
Business Acquisition, Cost of Acquired Entity, Purchase Price
 
 
 
 
 
 
 
 
 
 
 
 
3,540,000,000 
2,650,000,000 
 
 
 
 
 
 
 
 
Debt Instrument, Face Amount
 
 
 
 
575,000,000 
300,000,000 
300,000,000 
 
 
300,000,000 
500,000,000 
1,100,000,000 
 
 
500,000,000 
1,900,000,000 
 
 
 
 
 
 
Debt Instrument, Interest Rate, Stated Percentage
 
 
 
 
 
 
 
 
 
2.00% 
3.50% 
5.00% 
 
 
 
 
 
 
 
 
 
 
Redemption Price Percentage of Principal Amount of Notes and Accrued and Unpaid Interest
101.00% 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Line of Credit Facility, Maximum Borrowing Capacity
 
 
 
550,000,000 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Debt Related Commitment Fees and Debt Issuance Costs
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
$ 50,000,000 
$ 70,000,000 
$ 60,000,000 
$ 90,000,000 
 
 
Common Stock Shares Value In Exchange
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
12,894,044