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(Mark One)
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ý
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QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
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For the Quarterly period ended June 30, 2012
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OR
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o
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TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
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For the transition period from ______ to ______ .
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DELAWARE
(State or other jurisdiction of incorporation or organization)
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84-0178360
(I.R.S. Employer Identification No.)
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1225 17th Street, Denver, Colorado, USA
1555 Notre Dame Street East, Montréal, Québec, Canada
(Address of principal executive offices)
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80202
H2L 2R5
(Zip Code)
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Large accelerated filer
ý
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Accelerated filer
o
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Non-accelerated filer
o
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Smaller reporting company
o
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(Do not check if a smaller reporting company)
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Page
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Thirteen Weeks Ended
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Twenty-Six Weeks Ended
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||||||||||||
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June 30, 2012
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June 25, 2011
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June 30, 2012
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June 25, 2011
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||||||||
Sales
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$
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1,440.9
|
|
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$
|
1,383.1
|
|
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$
|
2,449.0
|
|
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$
|
2,380.4
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Excise taxes
|
(441.5
|
)
|
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(449.5
|
)
|
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(758.2
|
)
|
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(756.4
|
)
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||||
Net sales
|
999.4
|
|
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933.6
|
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1,690.8
|
|
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1,624.0
|
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||||
Cost of goods sold
|
(580.1
|
)
|
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(523.9
|
)
|
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(1,018.9
|
)
|
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(951.1
|
)
|
||||
Gross profit
|
419.3
|
|
|
409.7
|
|
|
671.9
|
|
|
672.9
|
|
||||
Marketing, general and administrative expenses
|
(304.8
|
)
|
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(272.5
|
)
|
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(553.0
|
)
|
|
(510.9
|
)
|
||||
Special items, net
|
(21.2
|
)
|
|
(11.0
|
)
|
|
(22.7
|
)
|
|
(11.0
|
)
|
||||
Equity income in MillerCoors
|
185.6
|
|
|
171.8
|
|
|
304.5
|
|
|
273.0
|
|
||||
Operating income (loss)
|
278.9
|
|
|
298.0
|
|
|
400.7
|
|
|
424.0
|
|
||||
Interest income (expense), net
|
(84.6
|
)
|
|
(27.7
|
)
|
|
(108.4
|
)
|
|
(54.5
|
)
|
||||
Other income (expense), net
|
(70.5
|
)
|
|
(1.8
|
)
|
|
(71.9
|
)
|
|
(2.5
|
)
|
||||
Income (loss) from continuing operations before income taxes
|
123.8
|
|
|
268.5
|
|
|
220.4
|
|
|
367.0
|
|
||||
Income tax benefit (expense)
|
(25.9
|
)
|
|
(43.2
|
)
|
|
(43.2
|
)
|
|
(59.3
|
)
|
||||
Net income (loss) from continuing operations
|
97.9
|
|
|
225.3
|
|
|
177.2
|
|
|
307.7
|
|
||||
Income (loss) from discontinued operations, net of tax
|
0.8
|
|
|
(1.5
|
)
|
|
0.9
|
|
|
(1.2
|
)
|
||||
Net income (loss) including noncontrolling interests
|
98.7
|
|
|
223.8
|
|
|
178.1
|
|
|
306.5
|
|
||||
Less: Net (income) loss attributable to noncontrolling interests
|
6.4
|
|
|
(1.0
|
)
|
|
6.5
|
|
|
(0.8
|
)
|
||||
Net income (loss) attributable to Molson Coors Brewing Company
|
$
|
105.1
|
|
|
$
|
222.8
|
|
|
$
|
184.6
|
|
|
$
|
305.7
|
|
Basic net income (loss) attributable to Molson Coors Brewing Company per share:
|
|
|
|
|
|
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||||||||
From continuing operations
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$
|
0.58
|
|
|
$
|
1.20
|
|
|
$
|
1.02
|
|
|
$
|
1.64
|
|
From discontinued operations
|
—
|
|
|
(0.01
|
)
|
|
—
|
|
|
(0.01
|
)
|
||||
Basic net income per share
|
$
|
0.58
|
|
|
$
|
1.19
|
|
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$
|
1.02
|
|
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$
|
1.63
|
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Diluted net income (loss) attributable to Molson Coors Brewing Company per share:
|
|
|
|
|
|
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||||||||
From continuing operations
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$
|
0.57
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|
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$
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1.19
|
|
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$
|
1.01
|
|
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$
|
1.63
|
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From discontinued operations
|
—
|
|
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(0.01
|
)
|
|
—
|
|
|
(0.01
|
)
|
||||
Diluted net income per share
|
$
|
0.57
|
|
|
$
|
1.18
|
|
|
$
|
1.01
|
|
|
$
|
1.62
|
|
Weighted average shares—basic
|
180.8
|
|
|
187.1
|
|
|
180.6
|
|
|
187.0
|
|
||||
Weighted average shares—diluted
|
181.6
|
|
|
188.8
|
|
|
181.6
|
|
|
188.8
|
|
||||
Amounts attributable to Molson Coors Brewing Company
|
|
|
|
|
|
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|
||||||||
Net income (loss) from continuing operations
|
$
|
104.3
|
|
|
$
|
224.3
|
|
|
$
|
183.7
|
|
|
$
|
306.9
|
|
Income (loss) from discontinued operations, net of tax
|
0.8
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(1.5
|
)
|
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0.9
|
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(1.2
|
)
|
||||
Net income (loss) attributable to Molson Coors Brewing Company
|
$
|
105.1
|
|
|
$
|
222.8
|
|
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$
|
184.6
|
|
|
$
|
305.7
|
|
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Thirteen Weeks Ended
|
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Twenty-Six Weeks Ended
|
||||||||||||
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June 30, 2012
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June 25, 2011
|
|
June 30, 2012
|
|
June 25, 2011
|
||||||||
Net income (loss) including noncontrolling interests
|
$
|
98.7
|
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$
|
223.8
|
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$
|
178.1
|
|
|
$
|
306.5
|
|
Other comprehensive income (loss), net of tax:
|
|
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|
||||||||
Foreign currency translation adjustments
|
(64.2
|
)
|
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(34.7
|
)
|
|
43.6
|
|
|
127.0
|
|
||||
Amortization of net prior service costs and net actuarial losses
|
5.6
|
|
|
(0.1
|
)
|
|
15.5
|
|
|
0.8
|
|
||||
Unrealized (loss) gain on derivative instruments
|
7.6
|
|
|
1.4
|
|
|
(10.2
|
)
|
|
(6.1
|
)
|
||||
Reclassification adjustment on derivative instruments
|
1.7
|
|
|
4.7
|
|
|
3.5
|
|
|
7.2
|
|
||||
Ownership share of unconsolidated subsidiaries' other comprehensive income (loss)
|
(0.1
|
)
|
|
(4.0
|
)
|
|
9.3
|
|
|
8.9
|
|
||||
Total other comprehensive income (loss), net of tax
|
(49.4
|
)
|
|
(32.7
|
)
|
|
61.7
|
|
|
137.8
|
|
||||
Comprehensive income (loss)
|
49.3
|
|
|
191.1
|
|
|
239.8
|
|
|
444.3
|
|
||||
Less: Comprehensive income (loss) attributable to the noncontrolling interest
|
6.4
|
|
|
(1.0
|
)
|
|
6.5
|
|
|
(0.8
|
)
|
||||
Comprehensive income (loss) attributable to MCBC
|
$
|
55.7
|
|
|
$
|
190.1
|
|
|
$
|
246.3
|
|
|
$
|
443.5
|
|
MOLSON COORS BREWING COMPANY AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS
(IN MILLIONS)
(UNAUDITED)
|
|||||||
|
As of
|
||||||
|
June 30, 2012
|
|
December 31, 2011
|
||||
Assets
|
|
|
|
||||
Current assets:
|
|
|
|
||||
Cash and cash equivalents
|
$
|
516.0
|
|
|
$
|
1,078.9
|
|
Accounts receivable, net
|
739.9
|
|
|
588.8
|
|
||
Other receivables, net
|
136.2
|
|
|
137.2
|
|
||
Inventories:
|
|
|
|
||||
Finished, net
|
175.5
|
|
|
140.7
|
|
||
In process
|
28.5
|
|
|
15.3
|
|
||
Raw materials
|
43.6
|
|
|
41.8
|
|
||
Packaging materials, net
|
21.1
|
|
|
9.4
|
|
||
Total inventories, net
|
268.7
|
|
|
207.2
|
|
||
Other assets, net
|
140.4
|
|
|
94.0
|
|
||
Deferred tax assets
|
32.4
|
|
|
11.6
|
|
||
Discontinued operations
|
—
|
|
|
0.3
|
|
||
Total current assets
|
1,833.6
|
|
|
2,118.0
|
|
||
Properties, net
|
1,977.7
|
|
|
1,430.1
|
|
||
Goodwill
|
2,288.0
|
|
|
1,453.3
|
|
||
Other intangibles, net
|
7,125.3
|
|
|
4,586.0
|
|
||
Investment in MillerCoors
|
2,605.8
|
|
|
2,487.9
|
|
||
Deferred tax assets
|
154.4
|
|
|
149.9
|
|
||
Notes receivable, net
|
27.6
|
|
|
32.7
|
|
||
Other assets
|
224.3
|
|
|
165.9
|
|
||
Total assets
|
$
|
16,236.7
|
|
|
$
|
12,423.8
|
|
Liabilities and equity
|
|
|
|
||||
Current liabilities:
|
|
|
|
||||
Accounts payable
|
$
|
492.0
|
|
|
$
|
301.2
|
|
Accrued expenses and other liabilities
|
799.4
|
|
|
646.8
|
|
||
Derivative hedging instruments
|
6.4
|
|
|
107.6
|
|
||
Deferred tax liabilities
|
171.5
|
|
|
161.3
|
|
||
Current portion of long-term debt and short-term borrowings
|
802.5
|
|
|
46.9
|
|
||
Discontinued operations
|
14.3
|
|
|
13.4
|
|
||
Total current liabilities
|
2,286.1
|
|
|
1,277.2
|
|
||
Long-term debt
|
4,097.9
|
|
|
1,914.9
|
|
||
Pension and post-retirement benefits
|
687.2
|
|
|
697.5
|
|
||
Derivative hedging instruments
|
209.8
|
|
|
212.5
|
|
||
Deferred tax liabilities
|
883.8
|
|
|
455.6
|
|
||
Unrecognized tax benefits
|
89.1
|
|
|
76.4
|
|
||
Other liabilities
|
80.5
|
|
|
77.5
|
|
||
Discontinued operations
|
20.4
|
|
|
22.0
|
|
||
Total liabilities
|
8,354.8
|
|
|
4,733.6
|
|
||
Commitments and contingencies (Note 16)
|
|
|
|
|
|
||
Molson Coors Brewing Company stockholders' equity
|
|
|
|
||||
Capital stock:
|
|
|
|
||||
Preferred stock, non-voting, no par value (authorized: 25.0 shares; none issued)
|
—
|
|
|
—
|
|
||
Class A common stock, voting, $0.01 par value per share (authorized: 500.0 shares; issued and outstanding: 2.6 shares at June 30, 2012 and December 31, 2011)
|
—
|
|
|
—
|
|
||
Class B common stock, non-voting, $0.01 par value per share (authorized: 500.0 shares; issued: 163.7 shares and 162.7 shares at June 30, 2012 and December 31, 2011, respectively)
|
1.6
|
|
|
1.6
|
|
||
Class A exchangeable shares, no par value (issued and outstanding: 2.9 shares at June 30, 2012 and December 31, 2011)
|
110.5
|
|
|
110.5
|
|
||
Class B exchangeable shares, no par value (issued and outstanding: 19.3 shares at June 30, 2012 and December 31, 2011)
|
724.8
|
|
|
724.8
|
|
||
Paid-in capital
|
3,604.6
|
|
|
3,572.1
|
|
||
Retained earnings
|
3,758.4
|
|
|
3,689.7
|
|
||
Accumulated other comprehensive income (loss)
|
(68.0
|
)
|
|
(129.7
|
)
|
||
Class B common stock held in treasury at cost (7.5 shares at June 30, 2012 and December 31, 2011)
|
(321.1
|
)
|
|
(321.1
|
)
|
||
Total Molson Coors Brewing Company stockholders' equity
|
7,810.8
|
|
|
7,647.9
|
|
||
Noncontrolling interests
|
71.1
|
|
|
42.3
|
|
||
Total equity
|
7,881.9
|
|
|
7,690.2
|
|
||
Total liabilities and equity
|
$
|
16,236.7
|
|
|
$
|
12,423.8
|
|
|
Twenty-Six Weeks Ended
|
||||||
|
June 30, 2012
|
|
June 25, 2011
|
||||
Cash flows from operating activities:
|
|
|
|
||||
Net income (loss) including noncontrolling interests
|
$
|
178.1
|
|
|
$
|
306.5
|
|
Adjustments to reconcile net income to net cash provided by operating activities:
|
|
|
|
||||
Depreciation and amortization
|
111.8
|
|
|
107.1
|
|
||
Amortization of debt issuance costs and discounts
|
25.0
|
|
|
10.6
|
|
||
Share-based compensation
|
10.1
|
|
|
14.4
|
|
||
Loss on sale or impairment of properties and intangibles
|
21.1
|
|
|
8.6
|
|
||
Deferred income taxes
|
5.5
|
|
|
1.8
|
|
||
Equity income in MillerCoors
|
(304.5
|
)
|
|
(273.0
|
)
|
||
Distributions from MillerCoors
|
304.5
|
|
|
273.0
|
|
||
Equity in net income of other unconsolidated affiliates
|
(6.5
|
)
|
|
(9.9
|
)
|
||
Distributions from other unconsolidated affiliates
|
11.8
|
|
|
21.7
|
|
||
Excess tax benefits from share-based compensation
|
(3.5
|
)
|
|
(0.9
|
)
|
||
Change in current assets and liabilities and other, net of effect of Acquisition
|
44.9
|
|
|
(189.3
|
)
|
||
(Gain) loss from discontinued operations
|
(0.9
|
)
|
|
1.2
|
|
||
Net cash provided by operating activities
|
397.4
|
|
|
271.8
|
|
||
Cash flows from investing activities:
|
|
|
|
||||
Additions to properties
|
(81.4
|
)
|
|
(72.5
|
)
|
||
Proceeds from sales of properties and intangible assets
|
1.3
|
|
|
1.2
|
|
||
Acquisition of businesses, net of cash acquired
|
(2,257.4
|
)
|
|
(41.3
|
)
|
||
Change in restricted cash balances
|
—
|
|
|
2.7
|
|
||
Investment in MillerCoors
|
(565.7
|
)
|
|
(470.4
|
)
|
||
Return of capital from MillerCoors
|
459.9
|
|
|
376.4
|
|
||
Proceeds from settlements of derivative instruments
|
—
|
|
|
15.4
|
|
||
Payments on settlement of derivative instruments
|
(110.6
|
)
|
|
—
|
|
||
Investment in and advances to an unconsolidated affiliate
|
(3.7
|
)
|
|
(5.7
|
)
|
||
Trade loan repayments from customers
|
9.5
|
|
|
7.6
|
|
||
Trade loans advanced to customers
|
(4.6
|
)
|
|
(5.2
|
)
|
||
Net cash used in investing activities
|
(2,552.7
|
)
|
|
(191.8
|
)
|
||
Cash flows from financing activities:
|
|
|
|
||||
Exercise of stock options under equity compensation plans
|
20.8
|
|
|
6.3
|
|
||
Excess tax benefits from share-based compensation
|
3.5
|
|
|
0.9
|
|
||
Dividends paid
|
(115.9
|
)
|
|
(112.1
|
)
|
||
Dividends paid to noncontrolling interests holders
|
(2.9
|
)
|
|
(1.5
|
)
|
||
Debt issuance costs
|
(39.2
|
)
|
|
(2.2
|
)
|
||
Proceeds from issuances of long-term debt
|
2,195.4
|
|
|
—
|
|
||
Payments on long-term debt and capital lease obligations
|
(44.8
|
)
|
|
—
|
|
||
Payments on debt assumed in acquisition
|
(424.3
|
)
|
|
—
|
|
||
Proceeds from short-term borrowings
|
2.5
|
|
|
6.8
|
|
||
Payments on short-term borrowings
|
(13.5
|
)
|
|
(15.3
|
)
|
||
Payments on settlement of derivative instruments
|
(4.0
|
)
|
|
—
|
|
||
Net (payments) proceeds from revolving credit facilities
|
3.9
|
|
|
2.6
|
|
||
Change in overdraft balances and other
|
2.1
|
|
|
(10.8
|
)
|
||
Net cash provided by financing activities
|
1,583.6
|
|
|
(125.3
|
)
|
||
Cash and cash equivalents:
|
|
|
|
||||
Net increase (decrease) in cash and cash equivalents
|
(571.7
|
)
|
|
(45.3
|
)
|
||
Effect of foreign exchange rate changes on cash and cash equivalents
|
8.8
|
|
|
11.9
|
|
||
Balance at beginning of year
|
1,078.9
|
|
|
1,217.6
|
|
||
Balance at end of period
|
$
|
516.0
|
|
|
$
|
1,184.2
|
|
|
As of
|
|||||
|
June 30, 2012
|
June 25, 2011
|
||||
Balance at beginning of the year
|
$
|
6.2
|
|
$
|
9.1
|
|
Addition charged to expense, net of recoveries
|
2.4
|
|
(0.6
|
)
|
||
Write-offs
|
(1.3
|
)
|
(0.5
|
)
|
||
Foreign currency and other adjustments
|
—
|
|
0.2
|
|
||
Balance at end of second quarter
|
$
|
7.3
|
|
$
|
8.2
|
|
|
Thirteen Weeks Ended
|
|
Twenty-Six Weeks Ended
|
||||||||||||
|
June 30, 2012
|
|
June 25, 2011
|
|
June 30, 2012
|
|
June 25, 2011
|
||||||||
|
(In millions)
|
||||||||||||||
Net sales
|
$
|
1,200.5
|
|
|
$
|
1,231.5
|
|
|
$
|
2,031.3
|
|
|
$
|
2,069.4
|
|
Income from continuing operations before income taxes
|
279.7
|
|
|
315.8
|
|
|
347.5
|
|
|
395.3
|
|
||||
Net income attributable to MCBC
|
$
|
241.4
|
|
|
$
|
267.3
|
|
|
$
|
299.4
|
|
|
$
|
336.6
|
|
Net income per common share attributable to MCBC:
|
|
|
|
|
|
|
|
||||||||
Basic
|
$
|
1.33
|
|
|
$
|
1.43
|
|
|
$
|
1.65
|
|
|
$
|
1.80
|
|
Diluted
|
$
|
1.32
|
|
|
$
|
1.41
|
|
|
$
|
1.64
|
|
|
$
|
1.78
|
|
|
Fair Value
|
||
|
(In millions)
|
||
Cash consideration to Seller
|
$
|
1,816.0
|
|
Fair value of convertible note issued to Seller(1)
|
645.9
|
|
|
Senior debt facilities with third-party creditor(2)
|
585.0
|
|
|
Total consideration
|
$
|
3,046.9
|
|
Cash and bank overdraft acquired(3)
|
$
|
(42.3
|
)
|
Subordinated deferred payment obligation ("SDPO") with third-party creditors(4)
|
423.4
|
|
|
Total purchase price, inclusive of pre-existing debt assumed and subsequently repaid
|
$
|
3,428.0
|
|
(1)
|
We issued a
€500 million
Zero
Coupon Senior Unsecured Convertible Note due 2013 to the Seller upon close of the Acquisition. See Note 13, "Debt" for further discussion.
|
(2)
|
According to our agreement with the Seller and in accordance with the terms of the senior debt facility agreement, upon close of the Acquisition, we immediately repaid pre-existing StarBev third-party debt including accrued interest.
|
(3)
|
Consists of
$143.6 million
of cash acquired and
$101.3 million
of bank overdrafts assumed as part of MCCE's cash pool arrangement. See Note 13, "Debt" for further discussion.
|
(4)
|
We assumed the pre-existing StarBev
$423.4 million
SDPO payable to third-party creditors, which we subsequently repaid on June 29, 2012, in accordance with the terms of the SDPO agreement. The SDPO was held by private investors and accrued interest at
11%
. The settlement of the SDPO was not required by our agreement with the Seller.
|
(1)
|
Includes the SDPO discussed above, which was subsequently repaid on June 29, 2012 for
$425.7 million
including the
$1.4 million
of interest incurred subsequent to the close of the Acquisition noted as "Operating activities" in the table above.
|
(2)
|
Includes
$1,816.0 million
of cash consideration to the Seller for shares acquired and release of StarBev's pre-existing obligations to the Seller. Also, included is
$585.0 million
of pre-existing third-party debt immediately repaid in accordance with our agreement with the Seller and the terms of the senior debt facility agreement. This amount is presented net of cash acquired of
$143.6 million
.
|
(3)
|
Reflects the
$645.9 million
fair value of the convertible note issued to the Seller upon close of the Acquisition. See Note 13, "Debt" for further discussion.
|
|
Fair Value
|
||
|
(In millions)
|
||
Cash and cash equivalents
|
$
|
143.6
|
|
Current assets(1)
|
262.1
|
|
|
Properties, net
|
555.6
|
|
|
Other intangibles, net(2)
|
2,525.1
|
|
|
Other assets
|
44.5
|
|
|
Total assets acquired
|
$
|
3,530.9
|
|
Current liabilities(3)
|
846.0
|
|
|
Non-current liabilities(4)
|
431.0
|
|
|
Total liabilities assumed
|
$
|
1,277.0
|
|
Total identifiable net assets
|
$
|
2,253.9
|
|
Noncontrolling interest measured at fair value
|
38.5
|
|
|
Goodwill(5)
|
831.5
|
|
|
Total consideration
|
$
|
3,046.9
|
|
(1)
|
Includes trade receivables of
$152.2 million
and inventory of
$57.3 million
.
|
(2)
|
See Note 12, "Goodwill and Intangible Assets" for further discussion.
|
(3)
|
Includes the
$423.4 million
SDPO assumed, which was subsequently repaid for
$425.7 million
on June 29, 2012.
|
(4)
|
Includes
$409.9 million
of deferred tax liabilities.
|
(5)
|
The goodwill resulting from the Acquisition is primarily attributable to MCCE's licensed brand brewing, distribution and import business, anticipated synergies and the assembled workforce. All of the goodwill was preliminarily assigned to the new Central Europe segment and is not expected to be deductible for tax purposes. See Note 12, "Goodwill and Intangible Assets" for further discussion.
|
|
Thirteen Weeks Ended
|
|
Twenty-Six Weeks Ended
|
||||||||||||
|
June 30, 2012
|
|
June 25, 2011
|
|
June 30, 2012
|
|
June 25, 2011
|
||||||||
|
(In millions)
|
||||||||||||||
Canada
|
$
|
582.9
|
|
|
$
|
564.7
|
|
|
$
|
985.2
|
|
|
$
|
958.5
|
|
Central Europe(1)
|
57.3
|
|
|
—
|
|
|
57.3
|
|
|
—
|
|
||||
U.K.
|
326.2
|
|
|
341.7
|
|
|
589.6
|
|
|
616.4
|
|
||||
MCI
|
37.1
|
|
|
28.2
|
|
|
65.2
|
|
|
49.8
|
|
||||
Corporate
|
0.4
|
|
|
0.3
|
|
|
0.7
|
|
|
0.6
|
|
||||
Eliminations(2)
|
(4.5
|
)
|
|
(1.3
|
)
|
|
(7.2
|
)
|
|
(1.3
|
)
|
||||
Consolidated
|
$
|
999.4
|
|
|
$
|
933.6
|
|
|
$
|
1,690.8
|
|
|
$
|
1,624.0
|
|
(1)
|
Represents Central Europe net sales from the Acquisition date of June 15, 2012 through June 30, 2012.
|
(2)
|
Represents inter-segment sales from the U.K. segment to the MCI segment.
|
|
Thirteen Weeks Ended
|
|
Twenty-Six Weeks Ended
|
||||||||||||
|
June 30, 2012
|
|
June 25, 2011
|
|
June 30, 2012
|
|
June 25, 2011
|
||||||||
|
(In millions)
|
||||||||||||||
Canada
|
$
|
139.9
|
|
|
$
|
131.8
|
|
|
$
|
183.8
|
|
|
$
|
184.0
|
|
U.S.
|
185.6
|
|
|
171.8
|
|
|
304.5
|
|
|
273.0
|
|
||||
Central Europe(1)
|
12.4
|
|
|
—
|
|
|
12.4
|
|
|
—
|
|
||||
U.K.
|
16.3
|
|
|
32.3
|
|
|
17.6
|
|
|
39.1
|
|
||||
MCI
|
(24.3
|
)
|
|
(10.6
|
)
|
|
(32.9
|
)
|
|
(18.0
|
)
|
||||
Corporate
|
(206.1
|
)
|
|
(56.8
|
)
|
|
(265.0
|
)
|
|
(111.1
|
)
|
||||
Consolidated
|
$
|
123.8
|
|
|
$
|
268.5
|
|
|
$
|
220.4
|
|
|
$
|
367.0
|
|
(1)
|
Represents Central Europe income from continuing operations before income taxes from the Acquisition date of June 15, 2012 through June 30, 2012.
|
|
As of
|
||||||
|
June 30, 2012
|
|
December 31, 2011
|
||||
|
(In millions)
|
||||||
Canada
|
$
|
6,347.8
|
|
|
$
|
6,541.6
|
|
U.S.
|
2,605.8
|
|
|
2,487.9
|
|
||
Central Europe
|
4,464.5
|
|
|
—
|
|
||
U.K.
|
2,231.9
|
|
|
2,293.4
|
|
||
MCI
|
136.6
|
|
|
151.7
|
|
||
Corporate
|
450.1
|
|
|
948.9
|
|
||
Discontinued operations
|
—
|
|
|
0.3
|
|
||
Consolidated
|
$
|
16,236.7
|
|
|
$
|
12,423.8
|
|
|
As of
|
||||||
|
June 30, 2012
|
|
December 31, 2011
|
||||
|
(In millions)
|
||||||
Current assets
|
$
|
1,040.0
|
|
|
$
|
810.9
|
|
Non-current assets
|
8,839.9
|
|
|
8,861.7
|
|
||
Total assets
|
$
|
9,879.9
|
|
|
$
|
9,672.6
|
|
Current liabilities
|
$
|
926.8
|
|
|
$
|
922.7
|
|
Non-current liabilities
|
1,392.3
|
|
|
1,471.3
|
|
||
Total liabilities
|
2,319.1
|
|
|
2,394.0
|
|
||
Noncontrolling interests
|
42.5
|
|
|
36.7
|
|
||
Owners' equity
|
7,518.3
|
|
|
7,241.9
|
|
||
Total liabilities and equity
|
$
|
9,879.9
|
|
|
$
|
9,672.6
|
|
|
Three Months Ended
|
|
Six Months Ended
|
||||||||||||
|
June 30, 2012
|
|
June 30, 2011
|
|
June 30, 2012
|
|
June 30, 2011
|
||||||||
|
(In millions)
|
||||||||||||||
Net sales
|
$
|
2,224.0
|
|
|
$
|
2,132.3
|
|
|
$
|
3,983.8
|
|
|
$
|
3,831.4
|
|
Cost of goods sold
|
(1,311.8
|
)
|
|
(1,268.8
|
)
|
|
(2,381.8
|
)
|
|
(2,331.8
|
)
|
||||
Gross profit
|
$
|
912.2
|
|
|
$
|
863.5
|
|
|
$
|
1,602.0
|
|
|
$
|
1,499.6
|
|
Operating income
|
$
|
444.4
|
|
|
$
|
406.4
|
|
|
$
|
723.4
|
|
|
$
|
645.1
|
|
Net income attributable to MillerCoors
|
$
|
438.3
|
|
|
$
|
398.7
|
|
|
$
|
713.6
|
|
|
$
|
633.4
|
|
|
Thirteen Weeks Ended
|
|
Twenty-Six Weeks Ended
|
||||||||||||
|
June 30, 2012
|
|
June 25, 2011
|
|
June 30, 2012
|
|
June 25, 2011
|
||||||||
|
(In millions, except percentages)
|
||||||||||||||
Net income attributable to MillerCoors
|
$
|
438.3
|
|
|
$
|
398.7
|
|
|
$
|
713.6
|
|
|
$
|
633.4
|
|
MCBC economic interest
|
42
|
%
|
|
42
|
%
|
|
42
|
%
|
|
42
|
%
|
||||
MCBC proportionate share of MillerCoors net income
|
184.1
|
|
|
167.4
|
|
|
299.7
|
|
|
266.0
|
|
||||
Amortization of the difference between MCBC contributed cost basis and proportional share of the underlying equity in net assets of MillerCoors(1)
|
1.5
|
|
|
2.5
|
|
|
1.9
|
|
|
4.9
|
|
||||
Share-based compensation adjustment(2)
|
—
|
|
|
1.9
|
|
|
2.9
|
|
|
2.1
|
|
||||
Equity income in MillerCoors
|
$
|
185.6
|
|
|
$
|
171.8
|
|
|
$
|
304.5
|
|
|
$
|
273.0
|
|
(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
$587 million
as of
June 30, 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. We are still recording adjustments to eliminate the impacts related to the pre-existing SABMiller plc equity awards, which represent the amounts recorded in 2012.
|
|
Thirteen Weeks Ended
|
|
Twenty-Six Weeks Ended
|
||||||||||||||||||||||||||||
|
June 30, 2012
|
|
June 25, 2011
|
|
June 30, 2012
|
|
June 25, 2011
|
||||||||||||||||||||||||
|
Revenues
|
|
Pre-tax income
|
|
Revenues
|
|
Pre-tax income
|
|
Revenues
|
|
Pre-tax income
|
|
Revenues
|
|
Pre-tax income
|
||||||||||||||||
|
(In millions)
|
||||||||||||||||||||||||||||||
Grolsch(1)
|
$
|
6.4
|
|
|
$
|
0.9
|
|
|
$
|
7.7
|
|
|
$
|
1.9
|
|
|
$
|
11.6
|
|
|
$
|
1.7
|
|
|
$
|
12.9
|
|
|
$
|
2.6
|
|
Cobra U.K.
|
$
|
10.8
|
|
|
$
|
1.7
|
|
|
$
|
10.3
|
|
|
$
|
2.1
|
|
|
$
|
19.0
|
|
|
$
|
2.1
|
|
|
$
|
18.6
|
|
|
$
|
3.1
|
|
(1)
|
Substantially all such sales for Grolsch are made to us and as such, are eliminated in consolidation.
|
|
Thirteen Weeks Ended
|
|
Twenty-Six Weeks Ended
|
||||||||||||
|
June 30, 2012
|
|
June 25, 2011
|
|
June 30, 2012
|
|
June 25, 2011
|
||||||||
|
(In millions)
|
||||||||||||||
Stock options and SOSARs
|
|
|
|
|
|
|
|
||||||||
Pre-tax compensation expense
|
$
|
0.7
|
|
|
$
|
1.1
|
|
|
$
|
2.6
|
|
|
$
|
3.9
|
|
Tax benefit
|
(0.2
|
)
|
|
(0.3
|
)
|
|
(0.8
|
)
|
|
(1.1
|
)
|
||||
After-tax compensation expense
|
$
|
0.5
|
|
|
$
|
0.8
|
|
|
$
|
1.8
|
|
|
$
|
2.8
|
|
RSUs and DSUs
|
|
|
|
|
|
|
|
||||||||
Pre-tax compensation expense
|
$
|
2.5
|
|
|
$
|
3.1
|
|
|
$
|
4.6
|
|
|
$
|
5.4
|
|
Tax benefit
|
(0.7
|
)
|
|
(0.8
|
)
|
|
(1.3
|
)
|
|
(1.3
|
)
|
||||
After-tax compensation expense
|
$
|
1.8
|
|
|
$
|
2.3
|
|
|
$
|
3.3
|
|
|
$
|
4.1
|
|
PUs
|
|
|
|
|
|
|
|
||||||||
Pre-tax compensation expense
|
$
|
1.9
|
|
|
$
|
2.0
|
|
|
$
|
2.9
|
|
|
$
|
5.0
|
|
Tax benefit
|
(0.5
|
)
|
|
(0.6
|
)
|
|
(0.9
|
)
|
|
(1.5
|
)
|
||||
After-tax compensation expense
|
$
|
1.4
|
|
|
$
|
1.4
|
|
|
$
|
2.0
|
|
|
$
|
3.5
|
|
Total after-tax compensation expense
|
$
|
3.7
|
|
|
$
|
4.5
|
|
|
$
|
7.1
|
|
|
$
|
10.4
|
|
|
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)
|
|
$30.06
|
|
|
|
|
||
Forfeited
|
(0.1)
|
|
$46.86
|
|
|
|
|
||
Outstanding as of June 30, 2012
|
6.5
|
|
$39.70
|
|
4.28
|
|
$
|
26.0
|
|
Exercisable at June 30, 2012
|
5.6
|
|
$39.09
|
|
3.63
|
|
$
|
26.0
|
|
|
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
|
|
|
$42.12
|
|
0.7
|
|
|
$14.35
|
Vested
|
(0.2
|
)
|
|
$42.46
|
|
(0.7
|
)
|
|
$10.92
|
Forfeited
|
—
|
|
|
$43.35
|
|
(0.1
|
)
|
|
$11.20
|
Non-vested as of June 30, 2012
|
0.7
|
|
|
$43.20
|
|
1.9
|
|
|
$11.41
|
|
Twenty-Six Weeks Ended
|
||
|
June 30, 2012
|
|
June 25, 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
|
|
Thirteen Weeks Ended
|
|
Twenty-Six Weeks Ended
|
||||||||||||
|
June 30, 2012
|
|
June 25, 2011
|
|
June 30, 2012
|
|
June 25, 2011
|
||||||||
|
(In millions)
|
||||||||||||||
Employee related charges
|
|
|
|
|
|
|
|
||||||||
Restructuring
|
|
|
|
|
|
|
|
||||||||
Canada
|
$
|
—
|
|
|
$
|
0.6
|
|
|
$
|
1.6
|
|
|
$
|
0.6
|
|
U.K.
|
4.5
|
|
|
2.4
|
|
|
6.3
|
|
|
2.7
|
|
||||
Corporate
|
—
|
|
|
—
|
|
|
1.1
|
|
|
—
|
|
||||
Special termination benefits
|
|
|
|
|
|
|
|
||||||||
Canada(1)
|
1.4
|
|
|
1.2
|
|
|
1.9
|
|
|
4.0
|
|
||||
Impairments or asset abandonment charges
|
|
|
|
|
|
|
|
||||||||
U.K. - Asset abandonment(2)
|
7.2
|
|
|
—
|
|
|
7.2
|
|
|
—
|
|
||||
MCI - China impairment(3)
|
10.4
|
|
|
—
|
|
|
10.4
|
|
|
—
|
|
||||
Unusual or infrequent items
|
|
|
|
|
|
|
|
||||||||
Canada - Flood insurance reimbursement(4)
|
(2.3
|
)
|
|
0.7
|
|
|
(2.3
|
)
|
|
0.1
|
|
||||
Canada - Brewers' Retail, Inc. ("BRI") loan guarantee adjustment(5)
|
—
|
|
|
(2.0
|
)
|
|
—
|
|
|
(2.0
|
)
|
||||
Canada - Fixed asset adjustment(6)
|
—
|
|
|
7.6
|
|
|
—
|
|
|
7.6
|
|
||||
U.K. - Release of non-income-related tax reserve(7)
|
—
|
|
|
—
|
|
|
(3.5
|
)
|
|
(2.5
|
)
|
||||
MCI - Costs associated with outsourcing and other strategic initiatives
|
—
|
|
|
0.5
|
|
|
—
|
|
|
0.5
|
|
||||
Total Special items, net
|
$
|
21.2
|
|
|
$
|
11.0
|
|
|
$
|
22.7
|
|
|
$
|
11.0
|
|
(1)
|
During the second quarters and first halves of 2012 and 2011, we recognized charges related to special termination benefits as eligible employees elected early retirement offered as a result of the ratification of Collective Bargaining Agreements with MCC's brewery groups in 2011 and 2012.
|
(2)
|
During the second quarter of 2012, we recognized an asset abandonment charge related to the discontinuation of primary packaging in the U.K. We determined that our Home Draft package was not meeting expectations driven by a lack of demand in the U.K. market and as a result, we recognized a loss related to the write-off of the Home Draft packaging line, tooling equipment and packaging materials inventory.
|
(3)
|
See related detail in Note 12 "Goodwill and Intangible Assets."
|
(4)
|
In the second quarter and first half of 2012, we received insurance proceeds in excess of expenses incurred related to the flood damages at our Toronto offices. During the second quarter and first half of 2011, we incurred expenses related to these damages, which were partially offset by insurance proceeds.
|
(5)
|
During the second quarter of 2011, we recognized a gain resulting from a reduction of our guarantee of BRI debt obligations, which is discussed further in Note 16 "Commitments and Contingencies."
|
(6)
|
During the second quarter of 2011, we recognized a loss related to the correction of an immaterial error in prior periods to reduce Properties in the Canada segment, resulting from the performance of a fixed asset count. The impact of the error and the related correction in 2011 is not material to any prior annual or interim financial statements and is not material to the fiscal year results for 2011.
|
(7)
|
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.
|
|
Canada
|
|
U.K.
|
|
Corporate
|
|
Total
|
||||||||
|
(In millions)
|
||||||||||||||
Total at December 31, 2011
|
$
|
0.1
|
|
|
$
|
1.8
|
|
|
$
|
—
|
|
|
$
|
1.9
|
|
Charges incurred
|
1.6
|
|
|
6.3
|
|
|
1.1
|
|
|
9.0
|
|
||||
Payments made
|
(0.7
|
)
|
|
(1.7
|
)
|
|
—
|
|
|
(2.4
|
)
|
||||
Foreign currency and other adjustments
|
—
|
|
|
(0.3
|
)
|
|
—
|
|
|
(0.3
|
)
|
||||
Total at June 30, 2012
|
$
|
1.0
|
|
|
$
|
6.1
|
|
|
$
|
1.1
|
|
|
$
|
8.2
|
|
|
Thirteen Weeks Ended
|
|
Twenty-Six Weeks Ended
|
||||||||||||
|
June 30, 2012
|
|
June 25, 2011
|
|
June 30, 2012
|
|
June 25, 2011
|
||||||||
|
(In millions)
|
||||||||||||||
Bridge facility fees(1)
|
$
|
(13.0
|
)
|
|
$
|
—
|
|
|
$
|
(13.0
|
)
|
|
$
|
—
|
|
Euro currency purchase loss(2)
|
(57.9
|
)
|
|
—
|
|
|
(57.9
|
)
|
|
—
|
|
||||
Gain (loss) from Foster's total return swap and related financial instruments(3)
|
—
|
|
|
—
|
|
|
—
|
|
|
0.8
|
|
||||
Gain (loss) from other foreign exchange and derivative activity
|
(0.6
|
)
|
|
(3.3
|
)
|
|
(2.3
|
)
|
|
(4.0
|
)
|
||||
Environmental reserve
|
—
|
|
|
0.1
|
|
|
—
|
|
|
(0.1
|
)
|
||||
Other, net
|
1.0
|
|
|
1.4
|
|
|
1.3
|
|
|
0.8
|
|
||||
Other income (expense), net
|
$
|
(70.5
|
)
|
|
$
|
(1.8
|
)
|
|
$
|
(71.9
|
)
|
|
$
|
(2.5
|
)
|
(1)
|
See Note 13, "Debt" for further discussion.
|
(2)
|
In connection with the Acquisition, we used the proceeds from our issuance of the
$1.9 billion
senior notes to purchase Euros. As a result of a negative foreign exchange movement between the Euro and USD prior to using these proceeds to fund the Acquisition, we realized a foreign exchange loss on our Euro cash holdings.
|
(3)
|
During January 2011, we settled our remaining Foster's Group Limited's ("Fosters") total return swap and related financial instruments.
|
|
Thirteen Weeks Ended
|
|
Twenty-Six Weeks Ended
|
||||||||||||
|
June 30, 2012
|
|
June 25, 2011
|
|
June 30, 2012
|
|
June 25, 2011
|
||||||||
|
(In millions)
|
||||||||||||||
Amounts attributable to MCBC
|
|
|
|
|
|
|
|
||||||||
Net income (loss) from continuing operations
|
$
|
104.3
|
|
|
$
|
224.3
|
|
|
$
|
183.7
|
|
|
$
|
306.9
|
|
Income (loss) from discontinued operations, net of tax
|
0.8
|
|
|
(1.5
|
)
|
|
0.9
|
|
|
(1.2
|
)
|
||||
Net income (loss) attributable to MCBC
|
$
|
105.1
|
|
|
$
|
222.8
|
|
|
$
|
184.6
|
|
|
$
|
305.7
|
|
Weighted average shares for basic EPS
|
180.8
|
|
|
187.1
|
|
|
180.6
|
|
|
187.0
|
|
||||
Effect of dilutive securities:
|
|
|
|
|
|
|
|
||||||||
Options and SOSARs
|
0.4
|
|
|
1.0
|
|
|
0.5
|
|
|
1.0
|
|
||||
RSUs, PUs and DSUs
|
0.4
|
|
|
0.7
|
|
|
0.5
|
|
|
0.8
|
|
||||
Weighted average shares for diluted EPS
|
181.6
|
|
|
188.8
|
|
|
181.6
|
|
|
188.8
|
|
||||
Basic net income (loss) per share:
|
|
|
|
|
|
|
|
||||||||
Continuing operations attributable to MCBC
|
$
|
0.58
|
|
|
$
|
1.20
|
|
|
$
|
1.02
|
|
|
$
|
1.64
|
|
Discontinued operations attributable to MCBC
|
—
|
|
|
(0.01
|
)
|
|
—
|
|
|
(0.01
|
)
|
||||
Net income attributable to MCBC
|
$
|
0.58
|
|
|
$
|
1.19
|
|
|
$
|
1.02
|
|
|
$
|
1.63
|
|
Diluted net income (loss) per share:
|
|
|
|
|
|
|
|
||||||||
Continuing operations attributable to MCBC
|
$
|
0.57
|
|
|
$
|
1.19
|
|
|
$
|
1.01
|
|
|
$
|
1.63
|
|
Discontinued operations attributable to MCBC
|
—
|
|
|
(0.01
|
)
|
|
—
|
|
|
(0.01
|
)
|
||||
Net income attributable to MCBC
|
$
|
0.57
|
|
|
$
|
1.18
|
|
|
$
|
1.01
|
|
|
$
|
1.62
|
|
Dividends declared and paid per share
|
$
|
0.32
|
|
|
$
|
0.32
|
|
|
$
|
0.64
|
|
|
$
|
0.60
|
|
|
Thirteen Weeks Ended
|
|
Twenty-Six Weeks Ended
|
||||||||
|
June 30, 2012
|
|
June 25, 2011
|
|
June 30, 2012
|
|
June 25, 2011
|
||||
|
(In millions)
|
||||||||||
Stock options, SOSARs and RSUs(1)
|
2.1
|
|
|
0.7
|
|
|
1.4
|
|
|
0.6
|
|
Shares of Class B common stock issuable upon assumed conversion of the 2.5% Convertible Senior Notes(2)
|
10.9
|
|
|
10.7
|
|
|
10.9
|
|
|
10.7
|
|
Warrants to issue shares of Class B common stock(2)
|
10.9
|
|
|
10.7
|
|
|
10.9
|
|
|
10.7
|
|
Shares of Class B common stock issuable upon assumed conversion of the €500 million Convertible Note(3)
|
0.4
|
|
|
—
|
|
|
0.2
|
|
|
—
|
|
|
24.3
|
|
|
22.1
|
|
|
23.4
|
|
|
22.0
|
|
(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
$52.57
. The impact of stock that could be issued to settle share obligations we could have under the warrants we issued simultaneously with the senior convertible notes issuance will begin to dilute earnings per share when our stock price reaches
$67.30
. The potential receipt of MCBC stock from counterparties under our purchased call options when and if our stock price is between
$52.57
and
$67.30
would be anti-dilutive and excluded from any calculations of earnings per share.
|
(3)
|
Upon closing of the Acquisition in June 2012, we issued a
€500 million
Zero Coupon Senior Unsecured Convertible Note due 2013 to the Seller. The impact of a net share settlement of the conversion amount at maturity will begin to dilute earnings per share if and when our stock price reaches
$49.12
based on foreign exchange rates at June 30, 2012. See further discussion in Note 13, "Debt."
|
Balance at December 31, 2011
|
$
|
1,453.3
|
|
Business acquisition(1)
|
831.5
|
|
|
Impairment related to China reporting unit(2)
|
(9.5
|
)
|
|
Foreign currency translation
|
12.3
|
|
|
Purchase price adjustment
|
0.4
|
|
|
Balance at June 30, 2012
|
$
|
2,288.0
|
|
(1)
|
On June 15, 2012, we completed the Acquisition. See Note 3, "Acquisition of StarBev" for further discussion.
|
(2)
|
See further discussion below.
|
|
As of
|
||||||
|
June 30, 2012
|
|
December 31, 2011
|
||||
|
(In millions)
|
||||||
Canada
|
$
|
692.7
|
|
|
$
|
689.5
|
|
Central Europe(1)
|
833.4
|
|
|
—
|
|
||
United Kingdom
|
753.9
|
|
|
746.1
|
|
||
MCI
|
8.0
|
|
|
17.7
|
|
||
Consolidated
|
$
|
2,288.0
|
|
|
$
|
1,453.3
|
|
(1)
|
We have initially attributed the preliminary goodwill arising from the Acquisition to our Central Europe segment. This allocation is subject to change as we finalize purchase accounting, which we expect to occur during 2012.
|
|
Useful life
|
|
Gross
|
|
Accumulated
amortization
|
|
Net
|
||||||
|
(Years)
|
|
(In millions)
|
||||||||||
Intangible assets subject to amortization:
|
|
|
|
|
|
|
|
||||||
Brands(1)
|
3 - 40
|
|
$
|
456.3
|
|
|
$
|
(189.6
|
)
|
|
$
|
266.7
|
|
Distribution rights
|
2 - 23
|
|
343.7
|
|
|
(242.5
|
)
|
|
101.2
|
|
|||
Patents and technology and distribution channels
|
3 - 10
|
|
34.3
|
|
|
(30.4
|
)
|
|
3.9
|
|
|||
Favorable contracts, land use rights and other(1)
|
2 - 42
|
|
18.3
|
|
|
(1.2
|
)
|
|
17.1
|
|
|||
Intangible assets not subject to amortization:
|
|
|
|
|
|
|
|
||||||
Brands(1)
|
Indefinite
|
|
5,725.8
|
|
|
—
|
|
|
5,725.8
|
|
|||
Distribution networks
|
Indefinite
|
|
995.1
|
|
|
—
|
|
|
995.1
|
|
|||
Other
|
Indefinite
|
|
15.5
|
|
|
—
|
|
|
15.5
|
|
|||
Total
|
|
|
$
|
7,589.0
|
|
|
$
|
(463.7
|
)
|
|
$
|
7,125.3
|
|
(1)
|
Includes the preliminary fair values of
$135.6 million
for brand intangibles with a
30
year useful life,
$2,377.5 million
for brand intangibles with an indefinite-life and a preliminary fair value of a favorable supply contract and other intangibles of
$12.0 million
with a
2
year useful life as a result of the Acquisition. See Note 3, "Acquisition of StarBev" for total allocation of consideration. 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
|
|
|
Amount
|
||
|
(In millions)
|
||
2012 - remaining
|
$
|
23.2
|
|
2013
|
$
|
46.4
|
|
2014
|
$
|
38.5
|
|
2015
|
$
|
36.0
|
|
2016
|
$
|
36.0
|
|
|
As of
|
||||||
|
June 30, 2012
|
|
December 31, 2011
|
||||
|
(In millions)
|
||||||
Senior notes:
|
|
|
|
||||
$850 million 6.375% notes due 2012(1)
|
$
|
—
|
|
|
$
|
44.6
|
|
$575 million 2.5% convertible notes due 2013(2)
|
575.0
|
|
|
575.0
|
|
||
€500 million 0.0% convertible note due 2013(3)
|
654.2
|
|
|
—
|
|
||
CAD 900 million 5.0% notes due 2015
|
885.3
|
|
|
881.2
|
|
||
CAD 500 million 3.95% Series A notes due 2017
|
491.8
|
|
|
489.6
|
|
||
$300 million 2.0% notes due 2017(4)
|
300.0
|
|
|
—
|
|
||
$500 million 3.5% notes due 2022(4)
|
500.0
|
|
|
—
|
|
||
$1.1 billion 5.0% notes due 2042(4)
|
1,100.0
|
|
|
—
|
|
||
$150 million term loan due 2016(5)
|
150.0
|
|
|
—
|
|
||
€120 million term loan due 2016(5)
|
151.6
|
|
|
—
|
|
||
Other long-term debt(6)
|
0.6
|
|
|
—
|
|
||
Credit facilities(7)
|
—
|
|
|
—
|
|
||
Less: unamortized debt discounts and other(8)
|
(27.5
|
)
|
|
(30.8
|
)
|
||
Total long-term debt (including current portion)
|
4,781.0
|
|
|
1,959.6
|
|
||
Less: current portion of long-term debt
|
(683.1
|
)
|
|
(44.7
|
)
|
||
Total long-term debt
|
$
|
4,097.9
|
|
|
$
|
1,914.9
|
|
(1)
|
During the
second
quarter of
2012
, we repaid the remaining outstanding portion of our
$850 million
6.375%
10
-year notes that were due in May 2012.
|
(2)
|
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.
|
(3)
|
On June 15, 2012, we issued a
€500 million
Zero
Coupon Senior Unsecured Convertible Note due 2013 (the ''Convertible Note'') to the Seller in conjunction with the closing of the Acquisition. The Convertible Note matures on December 31, 2013, and is a senior unsecured obligation guaranteed by MCBC. The Seller may exercise a put right with respect to the Convertible Note beginning on March 14, 2013, (the “First Redemption Date”) and ending on December 19, 2013, for the greater of the principal amount of the Convertible Note or the aggregate cash value of
12,894,044
shares of our Class B Common Stock, as adjusted for certain corporate events. The Convertible Note's embedded conversion feature was determined to meet the definition of a derivative required to be bifurcated and separately accounted for at fair value with changes in fair value recorded in earnings. At issuance, we recorded a liability of
€12.1 million
(or
$15.2 million
) related to the conversion feature. See Note 14, "Derivative Instruments and Hedging Activities" for further discussion of the derivative. The Convertible Note was issued at a discount of
€1.0 million
(or
$1.3 million
) which will be recognized as interest expense over the period from issuance to the First Redemption Date.
|
(4)
|
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%
interest and will mature on May 1, 2017. The 2022 senior notes were issued in an initial aggregate principal amount of
$500 million
at
3.5%
interest and will mature on May 1, 2022. The 2042 senior notes were issued in an initial aggregate principal amount of
$1.1 billion
at
5.0%
interest and will mature on May 1, 2042. The issuance resulted in total proceeds to us, before expenses, of
$1,880.7 million
, net of underwriting fees and discounts of
$14.7 million
and
$4.6 million
, respectively. Total debt issuance costs capitalized in connection with these senior notes, including the
$14.7 million
of underwriting fees, are approximately
$18 million
and will be amortized over the life of the notes. The issuance adds a number of guarantors to these debt securities as well as to our existing senior obligations, pursuant to requirements of our existing senior debt obligation agreements. These new guarantors consist principally of the U.K. operating entity. See Note 17, "Supplemental Guarantor Information" for further discussion and guarantor financial information reflective of this change.
|
(5)
|
On April 3, 2012, we entered into a term loan agreement (the ''Term Loan Agreement'') that provides for a
4
-year term loan facility of
$300 million
, composed of one
$150 million
borrowing and one Euro-denominated borrowing equal to
$150 million
at issuance (or
€120 million
borrowing) both of which were funded upon close of the Acquisition on June 15, 2012. The Term Loan Agreement requires quarterly principal repayments on each borrowing equal to
2.5%
of the initial principal obligation, commencing on September 30, 2012, with the remaining
62.5%
principal balance due at the June 15, 2016 maturity date. 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 limit our and our subsidiaries' ability to incur certain additional priority indebtedness, create or permit liens on assets or engage in mergers or consolidations. Debt issuance costs capitalized in connection with the Term Loan Agreement will be amortized over the life of the debt and total approximately
$3 million
.
|
(6)
|
Other long-term debt includes secured bank loans assumed upon the Acquisition and included in the opening balance sheet. See Note 3, "Acquisition of StarBev" for further discussion.
|
(7)
|
On April 3, 2012, we also entered into a revolving credit agreement (the ''Credit Agreement''). The Credit Agreement provides for a
4
-year revolving credit facility of
$300 million
that was subsequently amended to increase the borrowing limit to
$550 million
. The Credit Agreement contains customary events of default and specified representations and warranties and covenants, including, among other things, covenants that limit our and our subsidiaries' ability to incur certain additional priority indebtedness, create or permit liens on assets, or engage in mergers or consolidations. Debt issuance costs capitalized in connection with the Credit Agreement will be amortized over the life of the facility and total approximately
$5 million
. There were
no
outstanding borrowings on our
$550 million
credit facility as of
June 30, 2012
. 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
in the second quarter of 2011, 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
June 30, 2012
.
|
(8)
|
In addition to the unamortized debt discount on the
$575 million
convertible notes, we have unamortized debt discounts on the additional debt balances of
$7.6 million
and
$1.9 million
as of
June 30, 2012
, and
December 31, 2011
, respectively.
|
|
|
|
June 30, 2012
|
||||||||||||
|
Total at
June 30, 2012 |
|
Quoted prices in
active markets
(Level 1)
|
|
Significant other
observable inputs
(Level 2)
|
|
Significant
unobservable
inputs (Level 3)
|
||||||||
|
(In millions)
|
||||||||||||||
Cross currency swaps
|
$
|
(208.6
|
)
|
|
$
|
—
|
|
|
$
|
(208.6
|
)
|
|
$
|
—
|
|
Foreign currency forwards
|
3.5
|
|
|
—
|
|
|
3.5
|
|
|
—
|
|
||||
Commodity swaps
|
(3.9
|
)
|
|
—
|
|
|
(3.9
|
)
|
|
—
|
|
||||
Equity conversion feature of debt
|
(20.8
|
)
|
|
—
|
|
|
—
|
|
|
(20.8
|
)
|
||||
Total
|
$
|
(229.8
|
)
|
|
$
|
—
|
|
|
$
|
(209.0
|
)
|
|
$
|
(20.8
|
)
|
|
|
|
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
|
)
|
|
$
|
—
|
|
|
Rollforward of Level 3 Inputs
|
||
Total at December 31, 2011
|
$
|
—
|
|
Total gains or losses (realized/unrealized)
|
|
||
Included in earnings(1)
|
(5.6
|
)
|
|
Included in AOCI
|
—
|
|
|
Purchases
|
—
|
|
|
Sales
|
—
|
|
|
Issuances(1)
|
(15.2
|
)
|
|
Settlements
|
—
|
|
|
Net transfers In/Out of Level 3
|
—
|
|
|
Total at June 30, 2012
|
$
|
(20.8
|
)
|
Unrealized gains or losses for Level 3 assets/liabilities outstanding at June 30, 2012(1)
|
$
|
(5.6
|
)
|
(1)
|
At issuance, we recorded a liability of
€12.1 million
or (
$15.2 million
) related to the Convertible Note's embedded conversion feature. We recognized a
$5.6 million
unrealized loss, recorded in Interest expense, related to changes in fair value of this conversion feature for the quarter ended
June 30, 2012
.
|
|
Balance at June 30, 2012
|
Valuation Technique
|
Significant Unobservable Input(s)/Sensitivity of the Fair Value to Changes in the Unobservable Inputs
|
Range
|
||
Equity conversion feature of debt
|
$
|
(20.8
|
)
|
Option model
|
Implied volatility(1)
|
24-25%
|
(1)
|
Significant increase (decrease) in the unobservable input in isolation would result in a significantly higher (lower) fair value measurement.
|
|
June 30, 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
|
|
(208.6
|
)
|
|||
Foreign currency forwards
|
USD
|
437.3
|
|
Other current assets
|
|
2.6
|
|
|
Current derivative hedging instruments
|
|
(2.6
|
)
|
|||
|
|
|
|
Other assets
|
|
3.8
|
|
|
Long term derivative hedging instruments
|
|
(0.3
|
)
|
|||
Commodity swaps
|
Gigajoules
|
1.3
|
|
|
Other current assets
|
|
0.1
|
|
|
Current derivative hedging instruments
|
|
(1.2
|
)
|
||
|
|
|
|
Other assets
|
|
—
|
|
|
Long term derivative hedging instruments
|
|
(0.2
|
)
|
|||
Total derivatives designated as hedging instruments
|
|
|
|
|
$
|
6.5
|
|
|
|
|
$
|
(212.9
|
)
|
||
Derivatives not designated as hedging instruments:
|
|
|
|
|
|
|
|
|
|
|
|||||
Equity conversion feature of debt
|
EUR
|
500.0
|
|
|
|
|
|
|
Current portion of long-term debt and short-term borrowings
|
|
$
|
(20.8
|
)
|
||
Aluminum swaps
|
Metric tonnes (actual)
|
5,150.0
|
|
|
Other current assets
|
|
$
|
—
|
|
|
Current derivative hedging instruments
|
|
$
|
(2.6
|
)
|
|
|
|
|
Other assets
|
|
—
|
|
|
Long term derivative hedging instruments
|
|
(0.7
|
)
|
|||
Diesel swaps
|
Metric tonnes (actual)
|
7,518.0
|
|
|
Other current assets
|
|
0.4
|
|
|
Current derivative hedging instruments
|
|
—
|
|
||
|
|
|
|
Other assets
|
|
0.3
|
|
|
Long term derivative hedging instruments
|
|
—
|
|
|||
Total derivatives not designated as hedging instruments
|
|
|
|
|
$
|
0.7
|
|
|
|
|
$
|
(24.1
|
)
|
|
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
|
)
|
Total at December 31, 2011
|
$
|
1.7
|
|
Unrealized gain (loss) on derivative instruments
|
(15.3
|
)
|
|
Reclassification adjustment on derivative instruments
|
4.9
|
|
|
Tax benefit (expense)
|
3.7
|
|
|
Total at June 30, 2012
|
$
|
(5.0
|
)
|
For the Thirteen Weeks Ended June 30, 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
|
|
(5.2
|
)
|
|
Other income (expense), net
|
|
(0.4
|
)
|
|
Other income (expense), net
|
|
—
|
|
|||
|
|
|
|
|
Cost of goods sold
|
|
(1.3
|
)
|
|
Cost of goods sold
|
|
—
|
|
|||
Commodity swaps
|
|
0.6
|
|
|
Cost of goods sold
|
|
(0.4
|
)
|
|
Cost of goods sold
|
|
—
|
|
|||
Total
|
|
$
|
(4.6
|
)
|
|
|
|
$
|
(2.5
|
)
|
|
|
|
$
|
—
|
|
For the Thirteen Weeks Ended June 30, 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
|
|
$
|
(7.3
|
)
|
|
Other income (expense), net
|
|
$
|
—
|
|
|
Other income (expense), net
|
|
$
|
—
|
|
Total
|
|
$
|
(7.3
|
)
|
|
|
|
$
|
—
|
|
|
|
|
$
|
—
|
|
For the Thirteen Weeks Ended June 25, 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)
|
|
$
|
1.3
|
|
|
Other income (expense), net
|
|
$
|
6.6
|
|
|
Other income (expense), net
|
|
$
|
—
|
|
|
|
|
|
|
Interest expense, net
|
|
(3.6
|
)
|
|
Interest expense, net
|
|
—
|
|
|||
Forward starting interest rate swaps
|
|
0.3
|
|
|
Interest expense, net
|
|
(0.3
|
)
|
|
Interest expense, net
|
|
—
|
|
|||
Foreign currency forwards
|
|
8.8
|
|
|
Other income (expense), net
|
|
(2.9
|
)
|
|
Other income (expense), net
|
|
—
|
|
|||
|
|
|
|
|
Cost of goods sold
|
|
(4.0
|
)
|
|
Cost of goods sold
|
|
—
|
|
|||
Commodity swaps
|
|
(1.3
|
)
|
|
Cost of goods sold
|
|
—
|
|
|
Cost of goods sold
|
|
—
|
|
|||
Total
|
|
$
|
9.1
|
|
|
|
|
$
|
(4.2
|
)
|
|
|
|
$
|
—
|
|
(1)
|
The foreign exchange gain (loss) component of these cross currency swaps is offset by the corresponding gain (loss) on the hedged forecasted transactions in Other income (expense), net and Interest expense, net.
|
For the Twenty-Six Weeks Ended June 30, 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
|
|
(0.8
|
)
|
|
Interest expense, net
|
|
—
|
|
|||
Foreign currency forwards
|
|
2.8
|
|
|
Other income (expense), net
|
|
(1.0
|
)
|
|
Other income (expense), net
|
|
—
|
|
|||
|
|
|
|
Cost of goods sold
|
|
(2.4
|
)
|
|
Cost of goods sold
|
|
—
|
|
||||
Commodity swaps
|
|
(0.7
|
)
|
|
Cost of goods sold
|
|
(0.7
|
)
|
|
Cost of goods sold
|
|
—
|
|
|||
Total
|
|
$
|
2.1
|
|
|
|
|
$
|
(4.9
|
)
|
|
|
|
$
|
—
|
|
For the Twenty-Six Weeks Ended June 30, 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
|
|
$
|
13.2
|
|
|
Other income (expense), net
|
|
$
|
—
|
|
|
Other income (expense), net
|
|
$
|
—
|
|
Total
|
|
$
|
13.2
|
|
|
|
|
$
|
—
|
|
|
|
|
$
|
—
|
|
For the Twenty-Six Weeks Ended June 25, 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)
|
|
$
|
(1.8
|
)
|
|
Other income (expense), net
|
|
$
|
(16.9
|
)
|
|
Other income (expense), net
|
|
$
|
—
|
|
|
|
|
|
|
Interest expense, net
|
|
(7.0
|
)
|
|
Interest expense, net
|
|
—
|
|
|||
Forward starting interest rate swaps
|
|
0.6
|
|
|
Interest expense, net
|
|
(0.6
|
)
|
|
Interest expense, net
|
|
—
|
|
|||
Foreign currency forwards
|
|
0.1
|
|
|
Other income (expense), net
|
|
(4.6
|
)
|
|
Other income (expense), net
|
|
—
|
|
|||
|
|
|
|
Cost of goods sold
|
|
(6.4
|
)
|
|
Cost of goods sold
|
|
—
|
|
||||
Commodity swaps
|
|
2.6
|
|
|
Cost of goods sold
|
|
0.2
|
|
|
Cost of goods sold
|
|
—
|
|
|||
Total
|
|
$
|
1.5
|
|
|
|
|
$
|
(35.3
|
)
|
|
|
|
$
|
—
|
|
(1)
|
The foreign exchange gain (loss) component of these cross currency swaps is offset by the corresponding gain (loss) on the hedged forecasted transactions in Other income (expense), net and Interest expense, net.
|
For the Thirteen Weeks Ended June 30, 2012
|
||||||
Derivatives Not In Hedging Relationship
|
|
Location of Gain (Loss) Recognized in
Income on Derivative
|
|
Amount of Gain (Loss) Recognized in
Income on Derivative
|
||
Equity conversion feature of debt
|
|
Interest expense, net
|
|
$
|
(5.6
|
)
|
Commodity swaps
|
|
Cost of goods sold
|
|
$
|
0.5
|
|
|
|
|
|
$
|
(5.1
|
)
|
For the Twenty-Six Weeks Ended June 30, 2012
|
||||||
Derivatives Not In Hedging Relationship
|
|
Location of Gain (Loss) Recognized in
Income on Derivative
|
|
Amount of Gain (Loss) Recognized in
Income on Derivative
|
||
Equity conversion feature of debt
|
|
Interest expense, net
|
|
$
|
(5.6
|
)
|
Commodity swaps
|
|
Cost of goods sold
|
|
$
|
0.6
|
|
|
|
|
|
$
|
(5.0
|
)
|
For the Twenty-Six Weeks Ended June 25, 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
|
|
|
Thirteen Weeks Ended June 30, 2012
|
||||||||||||||||||
|
Canada plans
|
|
U.S. plans
|
|
U.K. plan
|
|
MCI plan
|
|
Consolidated
|
||||||||||
|
(In millions)
|
||||||||||||||||||
Defined Benefit Plans
|
|
|
|
|
|
|
|
|
|
||||||||||
Service cost
|
$
|
4.1
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
0.1
|
|
|
$
|
4.2
|
|
Interest cost
|
16.6
|
|
|
—
|
|
|
24.8
|
|
|
—
|
|
|
41.4
|
|
|||||
Expected return on plan assets
|
(15.2
|
)
|
|
—
|
|
|
(28.5
|
)
|
|
—
|
|
|
(43.7
|
)
|
|||||
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)
|
$
|
10.7
|
|
|
$
|
—
|
|
|
$
|
0.7
|
|
|
$
|
0.1
|
|
|
$
|
11.5
|
|
Other Postretirement Benefits
|
|
|
|
|
|
|
|
|
|
||||||||||
Service cost—benefits earned during the period
|
$
|
0.6
|
|
|
$
|
0.1
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
0.7
|
|
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 (gain)
|
(0.1
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(0.1
|
)
|
|||||
Net periodic postretirement benefit cost
|
$
|
1.5
|
|
|
$
|
0.1
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
1.6
|
|
|
Thirteen Weeks Ended June 25, 2011
|
||||||||||||||||||
|
Canada plans
|
|
U.S. plans
|
|
U.K. plan
|
|
MCI plan
|
|
Consolidated
|
||||||||||
|
(In millions)
|
||||||||||||||||||
Defined Benefit Plans
|
|
|
|
|
|
|
|
|
|
||||||||||
Service cost
|
$
|
4.8
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
4.8
|
|
Interest cost
|
18.5
|
|
|
0.1
|
|
|
27.5
|
|
|
—
|
|
|
46.1
|
|
|||||
Expected return on plan assets
|
(18.8
|
)
|
|
—
|
|
|
(31.9
|
)
|
|
—
|
|
|
(50.7
|
)
|
|||||
Amortization of prior service cost
|
0.2
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
0.2
|
|
|||||
Amortization of net actuarial loss
|
2.4
|
|
|
—
|
|
|
2.8
|
|
|
—
|
|
|
5.2
|
|
|||||
Less expected participant contributions
|
(0.4
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(0.4
|
)
|
|||||
Special termination of benefits
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||
Net periodic pension cost (benefit)
|
$
|
6.7
|
|
|
$
|
0.1
|
|
|
$
|
(1.6
|
)
|
|
$
|
—
|
|
|
$
|
5.2
|
|
Other Postretirement Benefits
|
|
|
|
|
|
|
|
|
|
||||||||||
Service cost—benefits earned during the period
|
$
|
0.5
|
|
|
$
|
0.1
|
|
|
$
|
—
|
|
|
—
|
|
|
$
|
0.6
|
|
|
Interest cost on projected benefit obligation
|
2.0
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
2.0
|
|
|||||
Amortization of prior service cost (gain)
|
(1.0
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(1.0
|
)
|
|||||
Amortization of net actuarial loss
|
(0.9
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(0.9
|
)
|
|||||
Net periodic postretirement benefit cost
|
$
|
0.6
|
|
|
$
|
0.1
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
0.7
|
|
|
Twenty-Six Weeks Ended June 30, 2012
|
||||||||||||||||||
|
Canada plans
|
|
U.S. plans
|
|
U.K. plan
|
|
MCI plan
|
|
Consolidated
|
||||||||||
|
(In millions)
|
||||||||||||||||||
Defined Benefit Plans
|
|
|
|
|
|
|
|
|
|
||||||||||
Service cost
|
$
|
8.2
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
0.2
|
|
|
$
|
8.4
|
|
Interest cost
|
33.2
|
|
|
—
|
|
|
49.3
|
|
|
—
|
|
|
82.5
|
|
|||||
Expected return on plan assets
|
(30.5
|
)
|
|
—
|
|
|
(56.7
|
)
|
|
—
|
|
|
(87.2
|
)
|
|||||
Amortization of prior service cost
|
0.4
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
0.4
|
|
|||||
Amortization of net actuarial loss
|
10.8
|
|
|
—
|
|
|
8.8
|
|
|
—
|
|
|
19.6
|
|
|||||
Less expected participant contributions
|
(0.8
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(0.8
|
)
|
|||||
Net periodic pension cost (benefit)
|
$
|
21.3
|
|
|
$
|
—
|
|
|
$
|
1.4
|
|
|
$
|
0.2
|
|
|
$
|
22.9
|
|
Other Postretirement Benefits
|
|
|
|
|
|
|
|
|
|
||||||||||
Service cost—benefits earned during the period
|
$
|
1.2
|
|
|
$
|
0.2
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
1.4
|
|
Interest cost on projected benefit obligation
|
3.9
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
3.9
|
|
|||||
Amortization of prior service cost (gain)
|
(1.8
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(1.8
|
)
|
|||||
Amortization of net actuarial loss (gain)
|
(0.2
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(0.2
|
)
|
|||||
Net periodic postretirement benefit cost
|
$
|
3.1
|
|
|
$
|
0.2
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
3.3
|
|
|
Twenty-Six Weeks Ended June 25, 2011
|
||||||||||||||||||
|
Canada plans
|
|
U.S. plans
|
|
U.K. plan
|
|
MCI plan
|
|
Consolidated
|
||||||||||
|
(In millions)
|
||||||||||||||||||
Defined Benefit Plans
|
|
|
|
|
|
|
|
|
|
||||||||||
Service cost
|
$
|
9.5
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
9.5
|
|
Interest cost
|
36.6
|
|
|
0.2
|
|
|
54.4
|
|
|
—
|
|
|
91.2
|
|
|||||
Expected return on plan assets
|
(37.4
|
)
|
|
—
|
|
|
(63.1
|
)
|
|
—
|
|
|
(100.5
|
)
|
|||||
Amortization of prior service cost
|
0.4
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
0.4
|
|
|||||
Amortization of net actuarial loss
|
4.7
|
|
|
—
|
|
|
5.5
|
|
|
—
|
|
|
10.2
|
|
|||||
Less expected participant contributions
|
(0.8
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(0.8
|
)
|
|||||
Special termination of benefits
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||
Net periodic pension cost (benefit)
|
$
|
13.0
|
|
|
$
|
0.2
|
|
|
$
|
(3.2
|
)
|
|
$
|
—
|
|
|
$
|
10.0
|
|
Other Postretirement Benefits
|
|
|
|
|
|
|
|
|
|
||||||||||
Service cost—benefits earned during the period
|
$
|
1.0
|
|
|
$
|
0.2
|
|
|
$
|
—
|
|
|
—
|
|
|
$
|
1.2
|
|
|
Interest cost on projected benefit obligation
|
3.9
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
3.9
|
|
|||||
Amortization of prior service cost (gain)
|
(1.9
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(1.9
|
)
|
|||||
Amortization of net actuarial loss
|
(1.8
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(1.8
|
)
|
|||||
Net periodic postretirement benefit cost
|
$
|
1.2
|
|
|
$
|
0.2
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
1.4
|
|
|
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
|
(1.5
|
)
|
|
(0.7
|
)
|
|
(2.2
|
)
|
|||
Balance at June 30, 2012
|
$
|
20.0
|
|
|
$
|
8.4
|
|
|
$
|
28.4
|
|
•
|
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.
|
(1)
|
Amounts as previously reported within the first quarter 2012 recast GSOs to include Molson Coors Brewing Company (UK) Limited (our primary U.K. operating entity), Golden Acquisition, and Molson Coors Holdings Limited as subsidiary guarantors. Additionally, the corrections to amounts previously reported for the 2002 Issuer are now reflected under the current structure within the subsidiary guarantor activity.
|
|
June 25, 2011
|
||||||||||||||
|
As adjusted
|
||||||||||||||
|
(In millions)
|
||||||||||||||
|
Parent Guarantor, 2007 and 2012 Issuer
|
Subsidiary Guarantors
|
Subsidiary Non Guarantors
|
Eliminations
|
Consolidated
|
||||||||||
Equity income (loss) in subsidiaries, 13 weeks ended
|
$
|
223.2
|
|
$
|
(99.8
|
)
|
$
|
132.7
|
|
$
|
(256.1
|
)
|
$
|
—
|
|
Equity income (loss) in subsidiaries, 26 weeks ended
|
$
|
409.1
|
|
$
|
(227.5
|
)
|
$
|
176.9
|
|
$
|
(358.5
|
)
|
$
|
—
|
|
Interest income (expense), net, 13 weeks ended
|
$
|
(8.4
|
)
|
$
|
56.5
|
|
$
|
(75.8
|
)
|
$
|
—
|
|
$
|
(27.7
|
)
|
Interest income (expense), net, 26 weeks ended
|
$
|
(16.8
|
)
|
$
|
135.3
|
|
$
|
(173.0
|
)
|
$
|
—
|
|
$
|
(54.5
|
)
|
Other income (expense), net, 13 weeks ended
|
$
|
(0.1
|
)
|
$
|
(2.3
|
)
|
$
|
0.6
|
|
$
|
—
|
|
$
|
(1.8
|
)
|
Other income (expense), net, 26 weeks ended
|
$
|
1.3
|
|
$
|
(4.7
|
)
|
$
|
0.9
|
|
$
|
—
|
|
$
|
(2.5
|
)
|
Income (loss) from continuing operations before income taxes, 13 weeks ended
|
$
|
190.4
|
|
$
|
307.2
|
|
$
|
27.0
|
|
$
|
(256.1
|
)
|
$
|
268.5
|
|
Income (loss) from continuing operations before income taxes, 26 weeks ended
|
$
|
342.4
|
|
$
|
438.4
|
|
$
|
(55.3
|
)
|
$
|
(358.5
|
)
|
$
|
367.0
|
|
Net income (loss) attributable to MCBC, 13 weeks ended
|
$
|
222.8
|
|
$
|
223.4
|
|
$
|
32.7
|
|
$
|
(256.1
|
)
|
$
|
222.8
|
|
Net income (loss) attributable to MCBC, 26 weeks ended
|
$
|
305.7
|
|
$
|
408.5
|
|
$
|
(50.0
|
)
|
$
|
(358.5
|
)
|
$
|
305.7
|
|
|
Parent
Guarantor, 2007 and
2012 Issuer
|
|
Subsidiary
Guarantors
|
|
Subsidiary
Non
Guarantors
|
|
Eliminations
|
|
Consolidated
|
||||||||||
Sales
|
$
|
7.7
|
|
|
$
|
1,328.9
|
|
|
$
|
162.9
|
|
|
$
|
(58.6
|
)
|
|
$
|
1,440.9
|
|
Excise taxes
|
—
|
|
|
(410.8
|
)
|
|
(30.7
|
)
|
|
—
|
|
|
(441.5
|
)
|
|||||
Net sales
|
7.7
|
|
|
918.1
|
|
|
132.2
|
|
|
(58.6
|
)
|
|
999.4
|
|
|||||
Cost of goods sold
|
—
|
|
|
(508.2
|
)
|
|
(120.7
|
)
|
|
48.8
|
|
|
(580.1
|
)
|
|||||
Gross profit
|
7.7
|
|
|
409.9
|
|
|
11.5
|
|
|
(9.8
|
)
|
|
419.3
|
|
|||||
Marketing, general and administrative expenses
|
(50.9
|
)
|
|
(219.7
|
)
|
|
(44.0
|
)
|
|
9.8
|
|
|
(304.8
|
)
|
|||||
Special items, net
|
—
|
|
|
(10.8
|
)
|
|
(10.4
|
)
|
|
—
|
|
|
(21.2
|
)
|
|||||
Equity income (loss) in subsidiaries
|
205.3
|
|
|
(181.6
|
)
|
|
123.7
|
|
|
(147.4
|
)
|
|
—
|
|
|||||
Equity income in MillerCoors
|
—
|
|
|
185.6
|
|
|
—
|
|
|
—
|
|
|
185.6
|
|
|||||
Operating income (loss)
|
162.1
|
|
|
183.4
|
|
|
80.8
|
|
|
(147.4
|
)
|
|
278.9
|
|
|||||
Interest income (expense), net
|
(55.4
|
)
|
|
64.1
|
|
|
(93.3
|
)
|
|
—
|
|
|
(84.6
|
)
|
|||||
Other income (expense), net
|
(19.2
|
)
|
|
3.8
|
|
|
(55.1
|
)
|
|
—
|
|
|
(70.5
|
)
|
|||||
Income (loss) from continuing operations before income taxes
|
87.5
|
|
|
251.3
|
|
|
(67.6
|
)
|
|
(147.4
|
)
|
|
123.8
|
|
|||||
Income tax benefit (expense)
|
17.6
|
|
|
(52.8
|
)
|
|
9.3
|
|
|
—
|
|
|
(25.9
|
)
|
|||||
Net income (loss) from continuing operations
|
105.1
|
|
|
198.5
|
|
|
(58.3
|
)
|
|
(147.4
|
)
|
|
97.9
|
|
|||||
Income (loss) from discontinued operations, net of tax
|
—
|
|
|
—
|
|
|
0.8
|
|
|
—
|
|
|
0.8
|
|
|||||
Net income (loss) including noncontrolling interests
|
105.1
|
|
|
198.5
|
|
|
(57.5
|
)
|
|
(147.4
|
)
|
|
98.7
|
|
|||||
Add back (less): Loss (net income) attributable to noncontrolling interests
|
—
|
|
|
—
|
|
|
6.4
|
|
|
—
|
|
|
6.4
|
|
|||||
Net income (loss) attributable to MCBC
|
$
|
105.1
|
|
|
$
|
198.5
|
|
|
$
|
(51.1
|
)
|
|
$
|
(147.4
|
)
|
|
$
|
105.1
|
|
Comprehensive income attributable to MCBC
|
$
|
55.7
|
|
|
$
|
125.6
|
|
|
$
|
(4.5
|
)
|
|
$
|
(121.1
|
)
|
|
$
|
55.7
|
|
|
Parent
Guarantor, 2007 and
2012 Issuer
|
|
Subsidiary
Guarantors
|
|
Subsidiary
Non
Guarantors
|
|
Eliminations
|
|
Consolidated
|
||||||||||
Sales
|
$
|
8.0
|
|
|
$
|
1,340.8
|
|
|
$
|
85.5
|
|
|
$
|
(51.2
|
)
|
|
$
|
1,383.1
|
|
Excise taxes
|
—
|
|
|
(434.3
|
)
|
|
(15.2
|
)
|
|
—
|
|
|
(449.5
|
)
|
|||||
Net sales
|
8.0
|
|
|
906.5
|
|
|
70.3
|
|
|
(51.2
|
)
|
|
933.6
|
|
|||||
Cost of goods sold
|
—
|
|
|
(488.5
|
)
|
|
(78.1
|
)
|
|
42.7
|
|
|
(523.9
|
)
|
|||||
Gross profit
|
8.0
|
|
|
418.0
|
|
|
(7.8
|
)
|
|
(8.5
|
)
|
|
409.7
|
|
|||||
Marketing, general and administrative expenses
|
(31.8
|
)
|
|
(226.5
|
)
|
|
(22.7
|
)
|
|
8.5
|
|
|
(272.5
|
)
|
|||||
Special items, net
|
(0.5
|
)
|
|
(10.5
|
)
|
|
—
|
|
|
—
|
|
|
(11.0
|
)
|
|||||
Equity income (loss) in subsidiaries
|
223.2
|
|
|
(99.8
|
)
|
|
132.7
|
|
|
(256.1
|
)
|
|
—
|
|
|||||
Equity income in MillerCoors
|
—
|
|
|
171.8
|
|
|
—
|
|
|
—
|
|
|
171.8
|
|
|||||
Operating income (loss)
|
198.9
|
|
|
253.0
|
|
|
102.2
|
|
|
(256.1
|
)
|
|
298.0
|
|
|||||
Interest income (expense), net
|
(8.4
|
)
|
|
56.5
|
|
|
(75.8
|
)
|
|
—
|
|
|
(27.7
|
)
|
|||||
Other income (expense), net
|
(0.1
|
)
|
|
(2.3
|
)
|
|
0.6
|
|
|
—
|
|
|
(1.8
|
)
|
|||||
Income (loss) from continuing operations before income taxes
|
190.4
|
|
|
307.2
|
|
|
27.0
|
|
|
(256.1
|
)
|
|
268.5
|
|
|||||
Income tax benefit (expense)
|
32.4
|
|
|
(84.5
|
)
|
|
8.9
|
|
|
—
|
|
|
(43.2
|
)
|
|||||
Net income (loss) from continuing operations
|
222.8
|
|
|
222.7
|
|
|
35.9
|
|
|
(256.1
|
)
|
|
225.3
|
|
|||||
Income (loss) from discontinued operations, net of tax
|
—
|
|
|
—
|
|
|
(1.5
|
)
|
|
—
|
|
|
(1.5
|
)
|
|||||
Net income (loss) including noncontrolling interests
|
222.8
|
|
|
222.7
|
|
|
34.4
|
|
|
(256.1
|
)
|
|
223.8
|
|
|||||
Add back (less): Loss (net income) attributable to noncontrolling interests
|
—
|
|
|
0.7
|
|
|
(1.7
|
)
|
|
—
|
|
|
(1.0
|
)
|
|||||
Net income (loss) attributable to MCBC
|
$
|
222.8
|
|
|
$
|
223.4
|
|
|
$
|
32.7
|
|
|
$
|
(256.1
|
)
|
|
$
|
222.8
|
|
Comprehensive income attributable to MCBC
|
$
|
190.1
|
|
|
$
|
44.1
|
|
|
$
|
112.4
|
|
|
$
|
(156.5
|
)
|
|
$
|
190.1
|
|
|
Parent
Guarantor, 2007 and
2012 Issuer
|
|
Subsidiary
Guarantors
|
|
Subsidiary
Non
Guarantors
|
|
Eliminations
|
|
Consolidated
|
||||||||||
Sales
|
$
|
13.2
|
|
|
$
|
2,311.6
|
|
|
$
|
222.6
|
|
|
$
|
(98.4
|
)
|
|
$
|
2,449.0
|
|
Excise taxes
|
—
|
|
|
(714.7
|
)
|
|
(43.5
|
)
|
|
—
|
|
|
(758.2
|
)
|
|||||
Net sales
|
13.2
|
|
|
1,596.9
|
|
|
179.1
|
|
|
(98.4
|
)
|
|
1,690.8
|
|
|||||
Cost of goods sold
|
—
|
|
|
(924.8
|
)
|
|
(175.2
|
)
|
|
81.1
|
|
|
(1,018.9
|
)
|
|||||
Gross profit
|
13.2
|
|
|
672.1
|
|
|
3.9
|
|
|
(17.3
|
)
|
|
671.9
|
|
|||||
Marketing, general and administrative expenses
|
(85.4
|
)
|
|
(421.7
|
)
|
|
(63.2
|
)
|
|
17.3
|
|
|
(553.0
|
)
|
|||||
Special items, net
|
(1.1
|
)
|
|
(11.2
|
)
|
|
(10.4
|
)
|
|
—
|
|
|
(22.7
|
)
|
|||||
Equity income (loss) in subsidiaries
|
290.2
|
|
|
(299.1
|
)
|
|
149.7
|
|
|
(140.8
|
)
|
|
—
|
|
|||||
Equity income in MillerCoors
|
—
|
|
|
304.5
|
|
|
—
|
|
|
—
|
|
|
304.5
|
|
|||||
Operating income (loss)
|
216.9
|
|
|
244.6
|
|
|
80.0
|
|
|
(140.8
|
)
|
|
400.7
|
|
|||||
Interest income (expense), net
|
(55.4
|
)
|
|
138.2
|
|
|
(191.2
|
)
|
|
—
|
|
|
(108.4
|
)
|
|||||
Other income (expense), net
|
(7.1
|
)
|
|
(8.9
|
)
|
|
(55.9
|
)
|
|
—
|
|
|
(71.9
|
)
|
|||||
Income (loss) from continuing operations before income taxes
|
154.4
|
|
|
373.9
|
|
|
(167.1
|
)
|
|
(140.8
|
)
|
|
220.4
|
|
|||||
Income tax benefit (expense)
|
30.2
|
|
|
(90.5
|
)
|
|
17.1
|
|
|
—
|
|
|
(43.2
|
)
|
|||||
Net income (loss) from continuing operations
|
184.6
|
|
|
283.4
|
|
|
(150.0
|
)
|
|
(140.8
|
)
|
|
177.2
|
|
|||||
Income (loss) from discontinued operations, net of tax
|
—
|
|
|
—
|
|
|
0.9
|
|
|
—
|
|
|
0.9
|
|
|||||
Net income (loss) including noncontrolling interests
|
184.6
|
|
|
283.4
|
|
|
(149.1
|
)
|
|
(140.8
|
)
|
|
178.1
|
|
|||||
Add back (less): Loss (net income) attributable to noncontrolling interests
|
—
|
|
|
—
|
|
|
6.5
|
|
|
—
|
|
|
6.5
|
|
|||||
Net income (loss) attributable to MCBC
|
$
|
184.6
|
|
|
$
|
283.4
|
|
|
$
|
(142.6
|
)
|
|
$
|
(140.8
|
)
|
|
$
|
184.6
|
|
Comprehensive income attributable to MCBC
|
$
|
246.3
|
|
|
$
|
345.0
|
|
|
$
|
(105.1
|
)
|
|
$
|
(239.9
|
)
|
|
$
|
246.3
|
|
|
Parent
Guarantor, 2007 and
2012 Issuer
|
|
Subsidiary
Guarantors
|
|
Subsidiary
Non
Guarantors
|
|
Eliminations
|
|
Consolidated
|
||||||||||
Sales
|
$
|
13.8
|
|
|
$
|
2,340.7
|
|
|
$
|
111.2
|
|
|
$
|
(85.3
|
)
|
|
$
|
2,380.4
|
|
Excise taxes
|
—
|
|
|
(736.9
|
)
|
|
(19.5
|
)
|
|
—
|
|
|
(756.4
|
)
|
|||||
Net sales
|
13.8
|
|
|
1,603.8
|
|
|
91.7
|
|
|
(85.3
|
)
|
|
1,624.0
|
|
|||||
Cost of goods sold
|
—
|
|
|
(905.1
|
)
|
|
(116.9
|
)
|
|
70.9
|
|
|
(951.1
|
)
|
|||||
Gross profit
|
13.8
|
|
|
698.7
|
|
|
(25.2
|
)
|
|
(14.4
|
)
|
|
672.9
|
|
|||||
Marketing, general and administrative expenses
|
(64.5
|
)
|
|
(425.9
|
)
|
|
(34.9
|
)
|
|
14.4
|
|
|
(510.9
|
)
|
|||||
Special items, net
|
(0.5
|
)
|
|
(10.5
|
)
|
|
—
|
|
|
—
|
|
|
(11.0
|
)
|
|||||
Equity income (loss) in subsidiaries
|
409.1
|
|
|
(227.5
|
)
|
|
176.9
|
|
|
(358.5
|
)
|
|
—
|
|
|||||
Equity income in MillerCoors
|
—
|
|
|
273.0
|
|
|
—
|
|
|
—
|
|
|
273.0
|
|
|||||
Operating income (loss)
|
357.9
|
|
|
307.8
|
|
|
116.8
|
|
|
(358.5
|
)
|
|
424.0
|
|
|||||
Interest income (expense), net
|
(16.8
|
)
|
|
135.3
|
|
|
(173.0
|
)
|
|
—
|
|
|
(54.5
|
)
|
|||||
Other income (expense), net
|
1.3
|
|
|
(4.7
|
)
|
|
0.9
|
|
|
—
|
|
|
(2.5
|
)
|
|||||
Income (loss) from continuing operations before income taxes
|
342.4
|
|
|
438.4
|
|
|
(55.3
|
)
|
|
(358.5
|
)
|
|
367.0
|
|
|||||
Income tax benefit (expense)
|
(36.7
|
)
|
|
(29.9
|
)
|
|
7.3
|
|
|
—
|
|
|
(59.3
|
)
|
|||||
Net income (loss) from continuing operations
|
305.7
|
|
|
408.5
|
|
|
(48.0
|
)
|
|
(358.5
|
)
|
|
307.7
|
|
|||||
Income (loss) from discontinued operations, net of tax
|
—
|
|
|
—
|
|
|
(1.2
|
)
|
|
—
|
|
|
(1.2
|
)
|
|||||
Net income (loss) including noncontrolling interests
|
305.7
|
|
|
408.5
|
|
|
(49.2
|
)
|
|
(358.5
|
)
|
|
306.5
|
|
|||||
Add back (less): Loss (net income) attributable to noncontrolling interests
|
—
|
|
|
—
|
|
|
(0.8
|
)
|
|
—
|
|
|
(0.8
|
)
|
|||||
Net income (loss) attributable to MCBC
|
$
|
305.7
|
|
|
$
|
408.5
|
|
|
$
|
(50.0
|
)
|
|
$
|
(358.5
|
)
|
|
$
|
305.7
|
|
Comprehensive income attributable to MCBC
|
$
|
443.5
|
|
|
$
|
520.4
|
|
|
$
|
26.5
|
|
|
$
|
(546.9
|
)
|
|
$
|
443.5
|
|
|
Parent
Guarantor, 2007 and
2012 Issuer
|
|
Subsidiary
Guarantors
|
|
Subsidiary
Non
Guarantors
|
|
Eliminations
|
|
Consolidated
|
||||||||||
Assets
|
|
|
|
|
|
|
|
|
|
||||||||||
Current assets:
|
|
|
|
|
|
|
|
|
|
||||||||||
Cash and cash equivalents
|
$
|
80.8
|
|
|
$
|
186.3
|
|
|
$
|
248.9
|
|
|
$
|
—
|
|
|
$
|
516.0
|
|
Accounts receivable, net
|
2.0
|
|
|
526.3
|
|
|
211.6
|
|
|
—
|
|
|
739.9
|
|
|||||
Other receivables, net
|
48.8
|
|
|
73.3
|
|
|
14.3
|
|
|
(0.2
|
)
|
|
136.2
|
|
|||||
Total inventories, net
|
—
|
|
|
207.2
|
|
|
61.5
|
|
|
—
|
|
|
268.7
|
|
|||||
Other assets, net
|
12.5
|
|
|
84.7
|
|
|
43.2
|
|
|
—
|
|
|
140.4
|
|
|||||
Deferred tax assets
|
—
|
|
|
—
|
|
|
32.9
|
|
|
(0.5
|
)
|
|
32.4
|
|
|||||
Intercompany accounts receivable
|
—
|
|
|
1,488.8
|
|
|
848.0
|
|
|
(2,336.8
|
)
|
|
—
|
|
|||||
Total current assets
|
144.1
|
|
|
2,566.6
|
|
|
1,460.4
|
|
|
(2,337.5
|
)
|
|
1,833.6
|
|
|||||
Properties, net
|
28.3
|
|
|
1,298.9
|
|
|
650.5
|
|
|
—
|
|
|
1,977.7
|
|
|||||
Goodwill
|
—
|
|
|
1,041.9
|
|
|
1,246.1
|
|
|
—
|
|
|
2,288.0
|
|
|||||
Other intangibles, net
|
—
|
|
|
4,531.6
|
|
|
2,593.7
|
|
|
—
|
|
|
7,125.3
|
|
|||||
Investment in MillerCoors
|
—
|
|
|
2,605.8
|
|
|
—
|
|
|
—
|
|
|
2,605.8
|
|
|||||
Net investment in and advances to subsidiaries
|
11,072.1
|
|
|
2,307.7
|
|
|
5,576.6
|
|
|
(18,956.4
|
)
|
|
—
|
|
|||||
Deferred tax assets
|
32.6
|
|
|
147.0
|
|
|
9.2
|
|
|
(34.4
|
)
|
|
154.4
|
|
|||||
Other assets, net
|
42.4
|
|
|
153.0
|
|
|
56.5
|
|
|
—
|
|
|
251.9
|
|
|||||
Total assets
|
$
|
11,319.5
|
|
|
$
|
14,652.5
|
|
|
$
|
11,593.0
|
|
|
$
|
(21,328.3
|
)
|
|
$
|
16,236.7
|
|
Liabilities and equity
|
|
|
|
|
|
|
|
|
|
||||||||||
Current liabilities:
|
|
|
|
|
|
|
|
|
|
||||||||||
Accounts payable
|
$
|
11.0
|
|
|
$
|
240.2
|
|
|
$
|
240.8
|
|
|
$
|
—
|
|
|
$
|
492.0
|
|
Accrued expenses and other liabilities, net
|
67.3
|
|
|
554.5
|
|
|
177.8
|
|
|
(0.2
|
)
|
|
799.4
|
|
|||||
Derivative hedging instruments
|
—
|
|
|
6.4
|
|
|
—
|
|
|
—
|
|
|
6.4
|
|
|||||
Deferred tax liability
|
6.6
|
|
|
165.4
|
|
|
—
|
|
|
(0.5
|
)
|
|
171.5
|
|
|||||
Current portion of long-term debt and short-term borrowings
|
15.0
|
|
|
653.0
|
|
|
134.5
|
|
|
—
|
|
|
802.5
|
|
|||||
Discontinued operations
|
—
|
|
|
—
|
|
|
14.3
|
|
|
—
|
|
|
14.3
|
|
|||||
Intercompany accounts payable
|
813.6
|
|
|
846.3
|
|
|
676.9
|
|
|
(2,336.8
|
)
|
|
—
|
|
|||||
Total current liabilities
|
913.5
|
|
|
2,465.8
|
|
|
1,244.3
|
|
|
(2,337.5
|
)
|
|
2,286.1
|
|
|||||
Long-term debt
|
2,585.5
|
|
|
1,375.3
|
|
|
137.1
|
|
|
—
|
|
|
4,097.9
|
|
|||||
Derivative hedging instruments
|
—
|
|
|
209.8
|
|
|
—
|
|
|
—
|
|
|
209.8
|
|
|||||
Pension and post-retirement benefits
|
—
|
|
|
681.3
|
|
|
5.9
|
|
|
—
|
|
|
687.2
|
|
|||||
Deferred tax liability
|
—
|
|
|
—
|
|
|
918.2
|
|
|
(34.4
|
)
|
|
883.8
|
|
|||||
Other liabilities, net
|
9.7
|
|
|
48.7
|
|
|
111.2
|
|
|
—
|
|
|
169.6
|
|
|||||
Discontinued operations
|
—
|
|
|
—
|
|
|
20.4
|
|
|
—
|
|
|
20.4
|
|
|||||
Intercompany notes payable
|
—
|
|
|
1,103.7
|
|
|
6,712.7
|
|
|
(7,816.4
|
)
|
|
—
|
|
|||||
Total liabilities
|
3,508.7
|
|
|
5,884.6
|
|
|
9,149.8
|
|
|
(10,188.3
|
)
|
|
8,354.8
|
|
|||||
MCBC stockholders' equity
|
8,654.3
|
|
|
14,845.4
|
|
|
3,267.5
|
|
|
(18,956.4
|
)
|
|
7,810.8
|
|
|||||
Intercompany notes receivable
|
(843.5
|
)
|
|
(6,077.5
|
)
|
|
(895.4
|
)
|
|
7,816.4
|
|
|
—
|
|
|||||
Total stockholders' equity
|
7,810.8
|
|
|
8,767.9
|
|
|
2,372.1
|
|
|
(11,140.0
|
)
|
|
7,810.8
|
|
|||||
Noncontrolling interests
|
—
|
|
|
—
|
|
|
71.1
|
|
|
—
|
|
|
71.1
|
|
|||||
Total equity
|
7,810.8
|
|
|
8,767.9
|
|
|
2,443.2
|
|
|
(11,140.0
|
)
|
|
7,881.9
|
|
|||||
Total liabilities and equity
|
$
|
11,319.5
|
|
|
$
|
14,652.5
|
|
|
$
|
11,593.0
|
|
|
$
|
(21,328.3
|
)
|
|
$
|
16,236.7
|
|
|
Parent
Guarantor, 2007 and
2012 Issuer
|
|
Subsidiary
Guarantors
|
|
Subsidiary
Non
Guarantors
|
|
Eliminations
|
|
Consolidated
|
||||||||||
Assets
|
|
|
|
|
|
|
|
|
|
||||||||||
Current assets:
|
|
|
|
|
|
|
|
|
|
||||||||||
Cash and cash equivalents
|
$
|
601.1
|
|
|
$
|
422.5
|
|
|
$
|
55.3
|
|
|
$
|
—
|
|
|
$
|
1,078.9
|
|
Accounts receivable, net
|
0.9
|
|
|
550.8
|
|
|
37.1
|
|
|
—
|
|
|
588.8
|
|
|||||
Other receivables, net
|
46.9
|
|
|
84.0
|
|
|
6.3
|
|
|
—
|
|
|
137.2
|
|
|||||
Total inventories, net
|
—
|
|
|
193.0
|
|
|
14.2
|
|
|
—
|
|
|
207.2
|
|
|||||
Other assets, net
|
9.7
|
|
|
74.2
|
|
|
10.1
|
|
|
—
|
|
|
94.0
|
|
|||||
Deferred tax assets
|
—
|
|
|
—
|
|
|
12.1
|
|
|
(0.5
|
)
|
|
11.6
|
|
|||||
Discontinued operations
|
—
|
|
|
—
|
|
|
0.3
|
|
|
—
|
|
|
0.3
|
|
|||||
Intercompany accounts receivable
|
—
|
|
|
1,522.0
|
|
|
1,612.9
|
|
|
(3,134.9
|
)
|
|
—
|
|
|||||
Total current assets
|
658.6
|
|
|
2,846.5
|
|
|
1,748.3
|
|
|
(3,135.4
|
)
|
|
2,118.0
|
|
|||||
Properties, net
|
27.6
|
|
|
1,314.0
|
|
|
88.5
|
|
|
—
|
|
|
1,430.1
|
|
|||||
Goodwill
|
—
|
|
|
1,033.0
|
|
|
420.3
|
|
|
—
|
|
|
1,453.3
|
|
|||||
Other intangibles, net
|
—
|
|
|
4,525.3
|
|
|
60.7
|
|
|
—
|
|
|
4,586.0
|
|
|||||
Investment in MillerCoors
|
—
|
|
|
2,487.9
|
|
|
—
|
|
|
—
|
|
|
2,487.9
|
|
|||||
Net investment in and advances to subsidiaries
|
7,925.2
|
|
|
1,056.3
|
|
|
5,363.3
|
|
|
(14,344.8
|
)
|
|
—
|
|
|||||
Deferred tax assets
|
33.1
|
|
|
149.2
|
|
|
2.3
|
|
|
(34.7
|
)
|
|
149.9
|
|
|||||
Other assets
|
19.8
|
|
|
155.6
|
|
|
23.2
|
|
|
—
|
|
|
198.6
|
|
|||||
Total assets
|
$
|
8,664.3
|
|
|
$
|
13,567.8
|
|
|
$
|
7,706.6
|
|
|
$
|
(17,514.9
|
)
|
|
$
|
12,423.8
|
|
Liabilities and equity
|
|
|
|
|
|
|
|
|
|
||||||||||
Current liabilities:
|
|
|
|
|
|
|
|
|
|
||||||||||
Accounts payable
|
$
|
7.3
|
|
|
$
|
256.1
|
|
|
$
|
37.8
|
|
|
$
|
—
|
|
|
$
|
301.2
|
|
Accrued expenses and other liabilities
|
34.6
|
|
|
579.9
|
|
|
32.3
|
|
|
—
|
|
|
646.8
|
|
|||||
Derivative hedging instruments
|
—
|
|
|
107.6
|
|
|
—
|
|
|
—
|
|
|
107.6
|
|
|||||
Deferred tax liability
|
6.2
|
|
|
155.6
|
|
|
—
|
|
|
(0.5
|
)
|
|
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
|
|
|
1,646.6
|
|
|
1,074.5
|
|
|
(3,134.9
|
)
|
|
—
|
|
|||||
Total current liabilities
|
461.9
|
|
|
2,790.5
|
|
|
1,160.2
|
|
|
(3,135.4
|
)
|
|
1,277.2
|
|
|||||
Long-term debt
|
546.2
|
|
|
1,368.7
|
|
|
—
|
|
|
—
|
|
|
1,914.9
|
|
|||||
Pension and post-retirement benefits
|
—
|
|
|
693.6
|
|
|
3.9
|
|
|
—
|
|
|
697.5
|
|
|||||
Derivative hedging instruments
|
—
|
|
|
212.5
|
|
|
—
|
|
|
—
|
|
|
212.5
|
|
|||||
Deferred tax liability
|
—
|
|
|
—
|
|
|
490.3
|
|
|
(34.7
|
)
|
|
455.6
|
|
|||||
Other liabilities, net
|
8.3
|
|
|
53.0
|
|
|
92.6
|
|
|
—
|
|
|
153.9
|
|
|||||
Discontinued operations
|
—
|
|
|
—
|
|
|
22.0
|
|
|
—
|
|
|
22.0
|
|
|||||
Intercompany notes payable
|
—
|
|
|
1,504.0
|
|
|
4,971.6
|
|
|
(6,475.6
|
)
|
|
—
|
|
|||||
Total liabilities
|
1,016.4
|
|
|
6,622.3
|
|
|
6,740.6
|
|
|
(9,645.7
|
)
|
|
4,733.6
|
|
|||||
MCBC stockholders' equity
|
8,267.8
|
|
|
11,917.0
|
|
|
1,807.9
|
|
|
(14,344.8
|
)
|
|
7,647.9
|
|
|||||
Intercompany notes receivable
|
(619.9
|
)
|
|
(4,971.5
|
)
|
|
(884.2
|
)
|
|
6,475.6
|
|
|
—
|
|
|||||
Total stockholders' equity
|
7,647.9
|
|
|
6,945.5
|
|
|
923.7
|
|
|
(7,869.2
|
)
|
|
7,647.9
|
|
|||||
Noncontrolling interests
|
—
|
|
|
—
|
|
|
42.3
|
|
|
—
|
|
|
42.3
|
|
|||||
Total equity
|
7,647.9
|
|
|
6,945.5
|
|
|
966.0
|
|
|
(7,869.2
|
)
|
|
7,690.2
|
|
|||||
Total liabilities and equity
|
$
|
8,664.3
|
|
|
$
|
13,567.8
|
|
|
$
|
7,706.6
|
|
|
$
|
(17,514.9
|
)
|
|
$
|
12,423.8
|
|
|
Parent
Guarantor, 2007 and
2012 Issuer
|
|
Subsidiary
Guarantors
|
|
Subsidiary
Non
Guarantors
|
|
Eliminations
|
|
Consolidated
|
||||||||||
Net cash provided by (used in) operating activities
|
$
|
374.8
|
|
|
$
|
664.9
|
|
|
$
|
(547.9
|
)
|
|
$
|
(94.4
|
)
|
|
$
|
397.4
|
|
CASH FLOWS FROM INVESTING ACTIVITIES:
|
|
|
|
|
|
|
|
|
|
||||||||||
Additions to properties
|
(5.4
|
)
|
|
(63.3
|
)
|
|
(12.7
|
)
|
|
—
|
|
|
(81.4
|
)
|
|||||
Proceeds from sales of properties and intangible assets
|
—
|
|
|
1.0
|
|
|
0.3
|
|
|
—
|
|
|
1.3
|
|
|||||
Acquisition of businesses, net of cash acquired
|
—
|
|
|
—
|
|
|
(2,257.4
|
)
|
|
—
|
|
|
(2,257.4
|
)
|
|||||
Investment in MillerCoors
|
—
|
|
|
(565.7
|
)
|
|
—
|
|
|
—
|
|
|
(565.7
|
)
|
|||||
Return of capital from MillerCoors
|
—
|
|
|
459.9
|
|
|
—
|
|
|
—
|
|
|
459.9
|
|
|||||
Payments on settlement of derivative instruments
|
—
|
|
|
(110.6
|
)
|
|
—
|
|
|
—
|
|
|
(110.6
|
)
|
|||||
Investment in and advances to an unconsolidated affiliate
|
—
|
|
|
(2.6
|
)
|
|
(1.1
|
)
|
|
—
|
|
|
(3.7
|
)
|
|||||
Trade loan repayments from customers
|
—
|
|
|
9.5
|
|
|
—
|
|
|
—
|
|
|
9.5
|
|
|||||
Trade loans advanced to customers
|
—
|
|
|
(4.6
|
)
|
|
—
|
|
|
—
|
|
|
(4.6
|
)
|
|||||
Net intercompany investing activity
|
(2,811.6
|
)
|
|
(2,659.9
|
)
|
|
—
|
|
|
5,471.5
|
|
|
—
|
|
|||||
Net cash provided by (used in) investing activities
|
(2,817.0
|
)
|
|
(2,936.3
|
)
|
|
(2,270.9
|
)
|
|
5,471.5
|
|
|
(2,552.7
|
)
|
|||||
CASH FLOWS FROM FINANCING ACTIVITIES:
|
|
|
|
|
|
|
|
|
|
||||||||||
Exercise of stock options under equity compensation plans
|
20.8
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
20.8
|
|
|||||
Excess tax benefits from share-based compensation
|
3.5
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
3.5
|
|
|||||
Dividends paid
|
(108.6
|
)
|
|
(97.5
|
)
|
|
(4.2
|
)
|
|
94.4
|
|
|
(115.9
|
)
|
|||||
Dividends paid to noncontrolling interests holders
|
—
|
|
|
(2.9
|
)
|
|
—
|
|
|
—
|
|
|
(2.9
|
)
|
|||||
Debt issuance costs
|
(39.2
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(39.2
|
)
|
|||||
Proceeds from issuances of long-term debt
|
2,045.4
|
|
|
—
|
|
|
150.0
|
|
|
—
|
|
|
2,195.4
|
|
|||||
Payments on long-term debt and capital lease obligations
|
—
|
|
|
(44.8
|
)
|
|
—
|
|
|
—
|
|
|
(44.8
|
)
|
|||||
Payments on debt assumed in acquisition
|
—
|
|
|
—
|
|
|
(424.3
|
)
|
|
—
|
|
|
(424.3
|
)
|
|||||
Proceeds from short-term borrowings
|
—
|
|
|
—
|
|
|
2.5
|
|
|
—
|
|
|
2.5
|
|
|||||
Payments on short-term borrowings
|
—
|
|
|
—
|
|
|
(13.5
|
)
|
|
—
|
|
|
(13.5
|
)
|
|||||
Payments on settlement of derivative instruments
|
—
|
|
|
(4.0
|
)
|
|
—
|
|
|
—
|
|
|
(4.0
|
)
|
|||||
Net (payments) proceeds from revolving credit facilities
|
—
|
|
|
—
|
|
|
3.9
|
|
|
—
|
|
|
3.9
|
|
|||||
Change in overdraft balances and other
|
—
|
|
|
—
|
|
|
2.1
|
|
|
—
|
|
|
2.1
|
|
|||||
Net intercompany financing activity
|
—
|
|
|
2,178.2
|
|
|
3,293.3
|
|
|
(5,471.5
|
)
|
|
—
|
|
|||||
Net cash provided by (used in) financing activities
|
1,921.9
|
|
|
2,029.0
|
|
|
3,009.8
|
|
|
(5,377.1
|
)
|
|
1,583.6
|
|
|||||
CASH AND CASH EQUIVALENTS:
|
|
|
|
|
|
|
|
|
|
||||||||||
Net increase (decrease) in cash and cash equivalents
|
(520.3
|
)
|
|
(242.4
|
)
|
|
191.0
|
|
|
—
|
|
|
(571.7
|
)
|
|||||
Effect of foreign exchange rate changes on cash and cash equivalents
|
—
|
|
|
6.2
|
|
|
2.6
|
|
|
—
|
|
|
8.8
|
|
|||||
Balance at beginning of year
|
601.1
|
|
|
422.5
|
|
|
55.3
|
|
|
—
|
|
|
1,078.9
|
|
|||||
Balance at end of period
|
$
|
80.8
|
|
|
$
|
186.3
|
|
|
$
|
248.9
|
|
|
$
|
—
|
|
|
$
|
516.0
|
|
|
Parent
Guarantor, 2007 and
2012 Issuer
|
|
Subsidiary
Guarantors
|
|
Subsidiary
Non
Guarantors
|
|
Eliminations
|
|
Consolidated
|
||||||||||
Net cash (used in) provided by operating activities
|
$
|
127.3
|
|
|
$
|
(696.5
|
)
|
|
$
|
975.5
|
|
|
$
|
(134.5
|
)
|
|
$
|
271.8
|
|
CASH FLOWS FROM INVESTING ACTIVITIES:
|
|
|
|
|
|
|
|
|
|
||||||||||
Additions to properties
|
(1.6
|
)
|
|
(50.0
|
)
|
|
(20.9
|
)
|
|
—
|
|
|
(72.5
|
)
|
|||||
Proceeds from sales of properties and intangible assets
|
—
|
|
|
—
|
|
|
1.2
|
|
|
—
|
|
|
1.2
|
|
|||||
Acquisition of businesses, net of cash acquired
|
—
|
|
|
—
|
|
|
(41.3
|
)
|
|
—
|
|
|
(41.3
|
)
|
|||||
Change in restricted cash balance
|
—
|
|
|
—
|
|
|
2.7
|
|
|
—
|
|
|
2.7
|
|
|||||
Investment in MillerCoors
|
—
|
|
|
(470.4
|
)
|
|
—
|
|
|
—
|
|
|
(470.4
|
)
|
|||||
Return of capital from MillerCoors
|
—
|
|
|
376.4
|
|
|
—
|
|
|
—
|
|
|
376.4
|
|
|||||
Proceeds from settlements of derivative instruments
|
15.4
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
15.4
|
|
|||||
Investment in and advances to an unconsolidated affiliate
|
—
|
|
|
—
|
|
|
(5.7
|
)
|
|
—
|
|
|
(5.7
|
)
|
|||||
Trade loan repayments from customers
|
—
|
|
|
1.3
|
|
|
6.3
|
|
|
—
|
|
|
7.6
|
|
|||||
Trade loans advanced to customers
|
—
|
|
|
(0.1
|
)
|
|
(5.1
|
)
|
|
—
|
|
|
(5.2
|
)
|
|||||
Other
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||
Net intercompany investing activity
|
0.1
|
|
|
2,251.2
|
|
|
1,497.6
|
|
|
(3,748.9
|
)
|
|
—
|
|
|||||
Net cash provided by (used in) investing activities
|
13.9
|
|
|
2,108.4
|
|
|
1,434.8
|
|
|
(3,748.9
|
)
|
|
(191.8
|
)
|
|||||
CASH FLOWS FROM FINANCING ACTIVITIES:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Exercise of stock options under equity compensation plans
|
6.3
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
6.3
|
|
|||||
Excess tax benefits from share-based compensation
|
0.9
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
0.9
|
|
|||||
Dividends paid
|
(99.1
|
)
|
|
—
|
|
|
(147.5
|
)
|
|
134.5
|
|
|
(112.1
|
)
|
|||||
Dividends paid to noncontrolling interest holders
|
—
|
|
|
—
|
|
|
(1.5
|
)
|
|
—
|
|
|
(1.5
|
)
|
|||||
Debt issuance costs
|
(2.2
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(2.2
|
)
|
|||||
Payments on short-term borrowings, net
|
—
|
|
|
—
|
|
|
(8.5
|
)
|
|
—
|
|
|
(8.5
|
)
|
|||||
Net (payments) proceeds from revolving credit facilities
|
—
|
|
|
—
|
|
|
2.6
|
|
|
—
|
|
|
2.6
|
|
|||||
Change in overdraft balances and other
|
—
|
|
|
—
|
|
|
(10.8
|
)
|
|
—
|
|
|
(10.8
|
)
|
|||||
Net intercompany financing activity
|
—
|
|
|
(1,497.8
|
)
|
|
(2,251.1
|
)
|
|
3,748.9
|
|
|
—
|
|
|||||
Net cash provided by (used in) financing activities
|
(94.1
|
)
|
|
(1,497.8
|
)
|
|
(2,416.8
|
)
|
|
3,883.4
|
|
|
(125.3
|
)
|
|||||
CASH AND CASH EQUIVALENTS:
|
|
|
|
|
|
|
|
|
|
||||||||||
Net increase (decrease) in cash and cash equivalents
|
47.1
|
|
|
(85.9
|
)
|
|
(6.5
|
)
|
|
—
|
|
|
(45.3
|
)
|
|||||
Effect of foreign exchange rate changes on cash and cash equivalents
|
—
|
|
|
2.5
|
|
|
9.4
|
|
|
—
|
|
|
11.9
|
|
|||||
Balance at beginning of year
|
832.0
|
|
|
349.5
|
|
|
36.1
|
|
|
—
|
|
|
1,217.6
|
|
|||||
Balance at end of period
|
$
|
879.1
|
|
|
$
|
266.1
|
|
|
$
|
39.0
|
|
|
$
|
—
|
|
|
$
|
1,184.2
|
|
•
|
In our Canada segment, income from continuing operations before income taxes and underlying pretax income increased
6.1%
to
$139.9 million
while underlying pretax income decreased
0.6%
to
$139.0 million
, driven by unfavorable foreign currency movements, increased marketing and sales investments and cycling lower employee incentive costs in 2011, largely offset by higher volume, positive net pricing, cost reductions, and income from the addition of the contract brewing sales to North American Breweries ("NAB").
|
•
|
In our U.S. segment, equity income in MillerCoors and underlying equity income in MillerCoors increased 8.0% to
$185.6 million
and 7.2% to $184.6 million, respectively, driven by positive pricing, favorable brand mix and cost management.
|
•
|
Our newly formed Central Europe segment reported income from continuing operations before income taxes of
$12.4 million
, and underlying pretax income of $19.7 million from the Acquisition date of June 15, 2012 through
June 30, 2012
.
|
•
|
In our U.K. segment, income from continuing operations before income taxes decreased $16.0 million to
$16.3 million
. Underlying pretax income of
$28.0 million
represents a decrease of $6.7 million, primarily due to lower volume, higher pension expense and higher marketing investment, partially offset by lower overhead costs.
|
•
|
In our MCI segment, loss from continuing operations before income taxes increased $13.7 million to
$24.3 million
while underlying pretax loss increased by $3.3 million to $13.4 million, due to the addition of costs related to the Molson Coors Cobra India joint venture and infrastructure investments and the effect of asset-value and cost adjustments in our Molson Coors Si'hai joint venture, partially offset by higher volumes.
|
|
Thirteen Weeks Ended
|
|
Twenty-Six Weeks Ended
|
||||||||||||||||||
|
June 30, 2012
|
|
June 25, 2011
|
|
% change
|
|
June 30, 2012
|
|
June 25, 2011
|
|
% change
|
||||||||||
|
(In millions, except percentages and per share data)
|
||||||||||||||||||||
Volume in hectoliters
|
5.799
|
|
|
4.964
|
|
|
16.8
|
%
|
|
9.404
|
|
|
8.642
|
|
|
8.8
|
%
|
||||
Net sales
|
$
|
999.4
|
|
|
$
|
933.6
|
|
|
7.0
|
%
|
|
1,690.8
|
|
|
$
|
1,624.0
|
|
|
4.1
|
%
|
|
Net income attributable to MCBC from continuing operations
|
$
|
104.3
|
|
|
$
|
224.3
|
|
|
(53.5
|
)%
|
|
$
|
183.7
|
|
|
$
|
306.9
|
|
|
(40.1
|
)%
|
Adjustments:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Special items(1)
|
21.2
|
|
|
11.0
|
|
|
92.7
|
%
|
|
22.7
|
|
|
11.0
|
|
|
106.4
|
%
|
||||
42% of MillerCoors specials, net of tax(2)
|
(1.0
|
)
|
|
0.4
|
|
|
N/M
|
|
|
(1.0
|
)
|
|
1.0
|
|
|
N/M
|
|
||||
Acquisition non-financing-related costs(3)
|
25.3
|
|
|
—
|
|
|
N/M
|
|
|
31.4
|
|
|
—
|
|
|
N/M
|
|
||||
Acquisition financing-related costs(4)
|
62.9
|
|
|
—
|
|
|
N/M
|
|
|
62.9
|
|
|
—
|
|
|
N/M
|
|
||||
Acquisition-related inventory step-up(5)
|
8.6
|
|
|
—
|
|
|
N/M
|
|
|
8.6
|
|
|
—
|
|
|
N/M
|
|
||||
Euro currency purchase loss(6)
|
57.9
|
|
|
—
|
|
|
N/M
|
|
|
57.9
|
|
|
—
|
|
|
N/M
|
|
||||
Unrealized loss on convertible note(7)
|
5.6
|
|
|
—
|
|
|
N/M
|
|
|
5.6
|
|
|
—
|
|
|
N/M
|
|
||||
Unrealized foreign exchange gain on Acquisition financing instruments(8)
|
(0.6
|
)
|
|
—
|
|
|
N/M
|
|
|
(0.6
|
)
|
|
—
|
|
|
N/M
|
|
||||
Unrealized gain on commodity swaps(9)
|
(1.5
|
)
|
|
—
|
|
|
N/M
|
|
|
(2.0
|
)
|
|
—
|
|
|
N/M
|
|
||||
Molson Coors Si'hai acquisition-related costs(10)
|
0.5
|
|
|
—
|
|
|
N/M
|
|
|
0.5
|
|
|
—
|
|
|
N/M
|
|
||||
Employee related expense(11)
|
—
|
|
|
—
|
|
|
N/M
|
|
|
(0.7
|
)
|
|
—
|
|
|
N/M
|
|
||||
Foster's total return swap(12)
|
—
|
|
|
—
|
|
|
N/M
|
|
|
—
|
|
|
(0.8
|
)
|
|
N/M
|
|
||||
Changes to environmental litigation provisions(13)
|
—
|
|
|
(0.1
|
)
|
|
N/M
|
|
|
—
|
|
|
0.1
|
|
|
N/M
|
|
||||
Noncontrolling interest effect on special items(14)
|
(5.1
|
)
|
|
—
|
|
|
N/M
|
|
|
(5.1
|
)
|
|
—
|
|
|
N/M
|
|
||||
Tax effect on special items(15)
|
(28.0
|
)
|
|
(4.0
|
)
|
|
N/M
|
|
|
(28.4
|
)
|
|
(5.0
|
)
|
|
N/M
|
|
||||
Non-GAAP: Underlying income attributable to MCBC from continuing operations, net of tax
|
$
|
250.1
|
|
|
$
|
231.6
|
|
|
8.0
|
%
|
|
$
|
335.5
|
|
|
$
|
313.2
|
|
|
7.1
|
%
|
Income attributable to MCBC per diluted share from continuing operations
|
$
|
0.57
|
|
|
$
|
1.19
|
|
|
(52.1
|
)%
|
|
$
|
1.01
|
|
|
$
|
1.63
|
|
|
(38.0
|
)%
|
Non-GAAP: Underlying income attributable to MCBC per diluted share from continuing operations
|
$
|
1.38
|
|
|
$
|
1.23
|
|
|
12.2
|
%
|
|
$
|
1.85
|
|
|
$
|
1.66
|
|
|
11.4
|
%
|
(1)
|
See Part I—Item 1. Financial Statements, Note 7 "Special Items" of the unaudited condensed consolidated financial statements for additional information.
|
(2)
|
See "Results of Operations", "United States Segment" under the sub-heading "Special Items" for additional information. The tax effect related to our share of MillerCoors special items was zero for the 13 and 26 weeks ended June 30, 2012, and zero for the 13 and 26 weeks ended June 25, 2011. The effect of taxes on the adjustments used to arrive at underlying income, a non-GAAP measure, is calculated based on the statutory tax rate applicable to the item being adjusted for the jurisdiction from which each adjustment arises.
|
(3)
|
On June 15, 2012, we completed the Acquisition. Related to this transaction, we recognized acquisition-related charges, primarily consulting and legal fees.
|
(4)
|
Concurrent with the announcement of the Acquisition, we entered into a bridge loan agreement, which we terminated upon the closing of our issuance of the
$1.9 billion
senior notes. In connection with the issuance and subsequent termination of the bridge loan, we incurred debt fees of
$13.0 million
recorded as Other expense. Additionally, in advance of our issuance of the
$1.9 billion
senior notes, we systematically removed a portion of our interest rate market risk by entering into standard pre-issuance U.S. Treasury interest rate hedges ("Treasury Locks"). This resulted in an increase in the certainty of our yield to maturity when issuing the notes. In the second quarter of 2012, we recognized a cash loss of
$39.2 million
on settlement of theTreasury Locks recorded as interest expense. Finally, we recognized $10.7 million of interest expense on our
$1.9 billion
senior notes prior to the closing of the Acquisition. See Part I—Item 1. Financial Statements, Note 8 "Other Income and Expense" and Note 13 "Debt" of the unaudited condensed consolidated financial statements for additional information.
|
(5)
|
As part of the allocation of the consideration transferred for the Acquisition, MCCE's inventory value was increased to fair value in accordance with U.S. GAAP. This resulted in a significant decline in MCCE's gross profit after the Acquisition date of June 15, 2012. All of this inventory was subsequently sold by MCCE in the second quarter of 2012.
|
(6)
|
In connection with the Acquisition, we used the proceeds from our issuance of the
$1.9 billion
senior notes to purchase Euros. As a result of a negative foreign exchange movement between the Euro and USD prior to using these proceeds to fund the Acquisition, we realized a foreign exchange loss on our Euro cash holdings. See Part I—Item 1. Financial Statements, Note 8 "Other Income and Expense" of the unaudited condensed consolidated financial statements for additional information.
|
(7)
|
We issued a €500 million
Zero
Coupon Senior Unsecured Convertible Note ("Convertible Note") to the Seller in conjunction with the closing of the Acquisition. The Convertible Note's embedded conversion feature was determined to meet the definition of a derivative required to be bifurcated and separately accounted for at fair value with changes in fair value recorded in earnings. In the second quarter, we recognized an unrealized loss of
$5.6 million
recorded in interest expense related to changes in the fair value of the conversion feature. See Part I—Item 1. Financial Statements, Note 13 "Debt" and Note 14 "Derivative Instruments and Hedging Activities" of the unaudited condensed consolidated financial statements for additional information.
|
(8)
|
We recognized a foreign exchange gain related to financing instruments entered into in conjunction with the closing of the Acquisition. This gain consists of a $3.8 million gain in Central Europe related to unrealized foreign currency movements and a $3.2 million loss in Corporate related to foreign exchange movements on our newly issued Euro-denominated Convertible Note and €120 million Term Loan. See Part I—Item 1. Financial Statements, Note 13 "Debt" of the unaudited condensed consolidated financial statements for additional information.
|
(9)
|
The unrealized gain related to changes in fair value on aluminum and diesel swaps are recorded in cost of goods sold within our Corporate business activities. As the exposure we are managing is realized, we reclassify the gain or loss to the operating segment, allowing our operating segments to realize the economic effects of the derivative without the resulting unrealized mark-to-market volatility. Unlike the majority of our derivative contracts, these swaps are not designated in a hedge accounting relationship.
|
(10)
|
We recognized costs in connection with us entering into an agreement to acquire the Molson Coors Si'hai joint venture's 49% noncontrolling interest.
|
(11)
|
Under governmental pension arrangements in the U.K., we received tax rebates from 2003 to 2009. Following the identification that some of these rebates for which we previously recognized expense were not related to former employees, we recognized an adjustment. This has resulted in a benefit to employee related expenses of $0.3 million in cost of goods sold and $0.4 million in marketing, general and administrative expenses.
|
(12)
|
See Part I—Item 1. Financial Statements, Note 8 "Other Income and Expense" of the unaudited condensed consolidated financial statements for additional information.
|
(13)
|
See Part I—Item 1. Financial Statements, Note 16 "Commitments and Contingencies" of the unaudited condensed consolidated financial statements under the sub-heading "Environmental" for additional information.
|
(14)
|
The effect of noncontrolling interest on the adjustments used to arrive at underlying income, a non-GAAP measure, is calculated based on our ownership percentage of our subsidiaries from which each adjustment arises. This adjustment relates primarily to the goodwill impairment charge in our Molson Coors Si'hai joint venture. See Part I—Item 1. Financial Statements, Note 12 "Goodwill and Intangible Assets" of the unaudited condensed consolidated financial statements for additional information.
|
(15)
|
The effect of taxes on the adjustments used to arrive at underlying income, a non-GAAP measure, is calculated based on the statutory tax rate applicable to the item being adjusted for the jurisdiction from which each adjustment arises.
|
|
Thirteen Weeks Ended June 30, 2012
|
||||||||||||||||||||||||||||||
|
U.S. GAAP
|
% Change vs. prior year
|
% Change per hectoliter
|
|
% of Net sales
|
Non-GAAP 42% Share of MillerCoors
|
% Change vs. prior year
|
% of Net sales
|
|
Adjust-ments
|
|
Non-GAAP
|
% Change vs. prior year
|
% Change per hectoliter
|
% of Net sales
|
||||||||||||||||
|
(In millions, except percentages)
|
||||||||||||||||||||||||||||||
Volumes in hectoliters
|
5.799
|
|
16.8
|
%
|
|
|
|
9.113
|
|
0.9
|
%
|
|
|
|
|
14.912
|
|
6.6
|
%
|
|
|
||||||||||
Net sales
|
$
|
999.4
|
|
7.0
|
%
|
(8.4
|
)%
|
|
|
$
|
934.1
|
|
4.3
|
%
|
|
|
|
|
$
|
1,933.5
|
|
5.7
|
%
|
(0.8
|
)%
|
|
|||||
Cost of goods sold
|
(580.1
|
)
|
10.7
|
%
|
(5.2
|
)%
|
|
|
(551.0
|
)
|
3.4
|
%
|
|
|
|
|
(1,131.1
|
)
|
7.0
|
%
|
0.4
|
%
|
|
||||||||
Gross profit
|
419.3
|
|
2.3
|
%
|
(12.4
|
)%
|
|
42.0
|
%
|
383.1
|
|
5.6
|
%
|
41.0
|
%
|
|
|
|
802.4
|
|
3.9
|
%
|
(2.5
|
)%
|
41.5
|
%
|
|||||
Marketing, general and administrative expenses
|
(304.8
|
)
|
11.9
|
%
|
|
|
|
(197.4
|
)
|
3.0
|
%
|
|
|
|
|
(502.2
|
)
|
8.2
|
%
|
|
|
||||||||||
Specials
|
(21.2
|
)
|
|
|
|
|
1.0
|
|
|
|
|
|
|
(20.2
|
)
|
|
|
|
|||||||||||||
Equity income in MillerCoors
|
185.6
|
|
8.0
|
%
|
|
|
|
—
|
|
|
|
|
(186.7
|
)
|
|
(1.1
|
)
|
|
|
|
|||||||||||
Operating income
|
$
|
278.9
|
|
(6.4
|
)%
|
|
|
27.9
|
%
|
$
|
186.7
|
|
9.4
|
%
|
20.0
|
%
|
|
$
|
(186.7
|
)
|
|
$
|
278.9
|
|
(6.4
|
)%
|
|
14.4
|
%
|
||
Pretax special items - net
|
21.2
|
|
|
|
|
|
—
|
|
|
|
|
|
|
21.2
|
|
|
|
|
|||||||||||||
42% of MillerCoors specials, net of tax
|
(1.0
|
)
|
|
|
|
|
(1.0
|
)
|
|
|
|
1.0
|
|
|
(1.0
|
)
|
|
|
|
||||||||||||
Acquisition non-financing-related costs
|
25.3
|
|
|
|
|
|
|
|
|
|
|
|
25.3
|
|
|
|
|
||||||||||||||
Acquisition-related inventory step-up
|
8.6
|
|
|
|
|
|
|
|
|
|
|
|
8.6
|
|
|
|
|
||||||||||||||
Unrealized gain on commodity swaps
|
(1.5
|
)
|
|
|
|
|
—
|
|
|
|
|
|
|
(1.5
|
)
|
|
|
|
|||||||||||||
Integration costs related to Molson Coors Si'hai
|
0.5
|
|
|
|
|
|
—
|
|
|
|
|
|
|
0.5
|
|
|
|
|
|||||||||||||
Underlying operating income
|
$
|
332.0
|
|
7.3
|
%
|
|
|
33.2
|
%
|
$
|
185.7
|
|
8.5
|
%
|
19.9
|
%
|
|
$
|
(185.7
|
)
|
|
$
|
332.0
|
|
7.3
|
%
|
|
17.2
|
%
|
|
Thirteen Weeks Ended June 25, 2011
|
||||||||||||||||||||
|
U.S. GAAP
|
% of Net sales
|
|
Non-GAAP 42% Share of MillerCoors
|
% of Net sales
|
|
Adjust-ments
|
|
Non-GAAP
|
% of Net sales
|
|||||||||||
|
(In millions, except percentages)
|
||||||||||||||||||||
Volumes in hectoliters
|
4.964
|
|
|
|
9.031
|
|
|
|
|
|
13.995
|
|
|
||||||||
Net sales
|
$
|
933.6
|
|
|
|
$
|
895.6
|
|
|
|
|
|
$
|
1,829.2
|
|
|
|||||
Cost of goods sold
|
(523.9
|
)
|
|
|
(532.9
|
)
|
|
|
|
|
(1,056.8
|
)
|
|
||||||||
Gross profit
|
409.7
|
|
43.9
|
%
|
|
362.7
|
|
40.5
|
%
|
|
|
|
772.4
|
|
42.2
|
%
|
|||||
Marketing, general and administrative expenses
|
(272.5
|
)
|
|
|
(191.6
|
)
|
|
|
|
|
(464.1
|
)
|
|
||||||||
Specials
|
(11.0
|
)
|
|
|
(0.4
|
)
|
|
|
|
|
(11.4
|
)
|
|
||||||||
Equity income in MillerCoors
|
171.8
|
|
|
|
—
|
|
|
|
(170.7
|
)
|
|
1.1
|
|
|
|||||||
Operating income
|
$
|
298.0
|
|
31.9
|
%
|
|
$
|
170.7
|
|
19.1
|
%
|
|
$
|
(170.7
|
)
|
|
$
|
298.0
|
|
16.3
|
%
|
Pretax special items - net
|
11.0
|
|
|
|
—
|
|
|
|
|
|
11.0
|
|
|
||||||||
42% of MillerCoors specials, net of tax
|
0.4
|
|
|
|
0.4
|
|
|
|
(0.4
|
)
|
|
0.4
|
|
|
|||||||
Underlying operating income
|
$
|
309.4
|
|
33.1
|
%
|
|
$
|
171.1
|
|
19.1
|
%
|
|
$
|
(171.1
|
)
|
|
$
|
309.4
|
|
16.9
|
%
|
|
Thirteen Weeks Ended
|
|
Twenty-Six Weeks Ended
|
||||||||||||||
|
June 30, 2012
|
|
June 25, 2011
|
|
% change
|
|
June 30, 2012
|
|
June 25, 2011
|
|
% change
|
||||||
|
(In millions, except percentages)
|
||||||||||||||||
Volume in hectoliters:
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Financial volume
|
5.799
|
|
|
4.964
|
|
|
16.8
|
%
|
|
9.404
|
|
|
8.642
|
|
|
8.8
|
%
|
Royalty volume(1)
|
0.203
|
|
|
0.099
|
|
|
105.1
|
%
|
|
0.303
|
|
|
0.167
|
|
|
81.4
|
%
|
Owned volume
|
6.002
|
|
|
5.063
|
|
|
18.5
|
%
|
|
9.707
|
|
|
8.809
|
|
|
10.2
|
%
|
Proportionate share of equity investment sales-to-retail(2)
|
7.904
|
|
|
8.002
|
|
|
(1.2
|
)%
|
|
14.120
|
|
|
14.217
|
|
|
(0.7
|
)%
|
Total worldwide beer volume
|
13.906
|
|
|
13.065
|
|
|
6.4
|
%
|
|
23.827
|
|
|
23.026
|
|
|
3.5
|
%
|
(1)
|
Includes our Central Europe segment volume in Russia and Ukraine, U.K. segment volume in Ireland and our MCI segment volume in Mexico, Ukraine, Spain, Russia, Vietnam and Philippines.
|
(2)
|
Reflects the addition of our proportionate share of equity method investments sales-to-retail for the periods presented.
|
|
For the Thirteen Weeks Ended
|
||||
|
June 30, 2012
|
|
June 25, 2011
|
||
Effective tax rate
|
21
|
%
|
|
16
|
%
|
Adjustments:
|
|
|
|
||
Impairment of China reporting unit
|
(2
|
)%
|
|
—
|
|
Non-core items
|
(1
|
)%
|
|
—
|
|
Canada special items
|
—
|
|
|
1
|
%
|
Non-GAAP: Underlying effective tax rate
|
18
|
%
|
|
17
|
%
|
|
Thirteen Weeks Ended
|
|
Twenty-Six Weeks Ended
|
||||||||||||||||||
|
June 30, 2012
|
|
June 25, 2011
|
|
% change
|
|
June 30, 2012
|
|
June 25, 2011
|
|
% change
|
||||||||||
|
(In millions, except percentages)
|
||||||||||||||||||||
Volume in hectoliters
|
2.411
|
|
|
2.368
|
|
|
1.8
|
%
|
|
4.097
|
|
|
4.081
|
|
|
0.4
|
%
|
||||
Net sales
|
$
|
582.9
|
|
|
$
|
564.7
|
|
|
3.2
|
%
|
|
$
|
985.2
|
|
|
$
|
958.5
|
|
|
2.8
|
%
|
Cost of goods sold
|
(301.9
|
)
|
|
(291.1
|
)
|
|
3.7
|
%
|
|
(544.3
|
)
|
|
(516.2
|
)
|
|
5.4
|
%
|
||||
Gross profit
|
281.0
|
|
|
273.6
|
|
|
2.7
|
%
|
|
440.9
|
|
|
442.3
|
|
|
(0.3
|
)%
|
||||
Marketing, general and administrative expenses
|
(141.4
|
)
|
|
(130.8
|
)
|
|
8.1
|
%
|
|
(254.4
|
)
|
|
(243.3
|
)
|
|
4.6
|
%
|
||||
Special items, net
|
0.9
|
|
|
(8.1
|
)
|
|
(111.1
|
)%
|
|
(1.2
|
)
|
|
(10.3
|
)
|
|
(88.3
|
)%
|
||||
Operating income
|
140.5
|
|
|
134.7
|
|
|
4.3
|
%
|
|
185.3
|
|
|
188.7
|
|
|
(1.8
|
)%
|
||||
Other income (expense), net
|
(0.6
|
)
|
|
(2.9
|
)
|
|
(79.3
|
)%
|
|
(1.5
|
)
|
|
(4.7
|
)
|
|
(68.1
|
)%
|
||||
Income (loss) from continuing operations before income taxes
|
$
|
139.9
|
|
|
$
|
131.8
|
|
|
6.1
|
%
|
|
$
|
183.8
|
|
|
$
|
184.0
|
|
|
(0.1
|
)%
|
Adjusting items:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Special items
|
(0.9
|
)
|
|
8.1
|
|
|
N/M
|
|
|
1.2
|
|
|
10.3
|
|
|
N/M
|
|
||||
Non-GAAP: Underlying pretax income
|
$
|
139.0
|
|
|
$
|
139.9
|
|
|
(0.6
|
)%
|
|
$
|
185.0
|
|
|
$
|
194.3
|
|
|
(4.8
|
)%
|
|
For the Three Months Ended
|
|
For the Six Months Ended
|
||||||||||||||||||
|
June 30, 2012
|
|
June 30, 2011
|
|
% change
|
|
June 30, 2012
|
|
June 30, 2011
|
|
% change
|
||||||||||
|
(In millions, except percentages)
|
||||||||||||||||||||
Volumes in hectoliters
|
21.697
|
|
|
21.504
|
|
|
0.9
|
%
|
|
39.056
|
|
|
38.905
|
|
|
0.4
|
%
|
||||
Sales
|
$
|
2,567.2
|
|
|
$
|
2,473.1
|
|
|
3.8
|
%
|
|
$
|
4,601.8
|
|
|
$
|
4,448.4
|
|
|
3.4
|
%
|
Excise taxes
|
(343.2
|
)
|
|
(340.8
|
)
|
|
0.7
|
%
|
|
(618.0
|
)
|
|
(617.0
|
)
|
|
0.2
|
%
|
||||
Net sales
|
2,224.0
|
|
|
2,132.3
|
|
|
4.3
|
%
|
|
3,983.8
|
|
|
3,831.4
|
|
|
4.0
|
%
|
||||
Cost of goods sold
|
(1,311.8
|
)
|
|
(1,268.8
|
)
|
|
3.4
|
%
|
|
(2,381.8
|
)
|
|
(2,331.8
|
)
|
|
2.1
|
%
|
||||
Gross profit
|
912.2
|
|
|
863.5
|
|
|
5.6
|
%
|
|
1,602.0
|
|
|
1,499.6
|
|
|
6.8
|
%
|
||||
Marketing, general and administrative expenses
|
(470.1
|
)
|
|
(456.0
|
)
|
|
3.1
|
%
|
|
(880.9
|
)
|
|
(852.0
|
)
|
|
3.4
|
%
|
||||
Special items, net
|
2.3
|
|
|
(1.1
|
)
|
|
N/M
|
|
|
2.3
|
|
|
(2.5
|
)
|
|
N/M
|
|
||||
Operating income
|
444.4
|
|
|
406.4
|
|
|
9.4
|
%
|
|
723.4
|
|
|
645.1
|
|
|
12.1
|
%
|
||||
Other income (expense), net
|
1.1
|
|
|
(1.5
|
)
|
|
N/M
|
|
|
2.4
|
|
|
(1.9
|
)
|
|
N/M
|
|
||||
Income from continuing operations before income taxes and noncontrolling interests
|
445.5
|
|
|
404.9
|
|
|
10.0
|
%
|
|
725.8
|
|
|
643.2
|
|
|
12.8
|
%
|
||||
Income tax expense
|
(1.8
|
)
|
|
(2.9
|
)
|
|
(37.9
|
)%
|
|
(2.5
|
)
|
|
(4.4
|
)
|
|
(43.2
|
)%
|
||||
Income from continuing operations
|
443.7
|
|
|
402.0
|
|
|
10.4
|
%
|
|
723.3
|
|
|
638.8
|
|
|
13.2
|
%
|
||||
Less: Net income attributable to noncontrolling interests
|
(5.4
|
)
|
|
(3.3
|
)
|
|
63.6
|
%
|
|
(9.7
|
)
|
|
(5.4
|
)
|
|
79.6
|
%
|
||||
Net income attributable to MillerCoors
|
$
|
438.3
|
|
|
$
|
398.7
|
|
|
9.9
|
%
|
|
$
|
713.6
|
|
|
$
|
633.4
|
|
|
12.7
|
%
|
Adjusting items:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Special items, net
|
(2.3
|
)
|
|
1.1
|
|
|
N/M
|
|
|
(2.3
|
)
|
|
2.5
|
|
|
N/M
|
|
||||
Non-GAAP: Underlying net income attributable to MillerCoors
|
$
|
436.0
|
|
|
$
|
399.8
|
|
|
9.1
|
%
|
|
$
|
711.3
|
|
|
$
|
635.9
|
|
|
11.9
|
%
|
|
Thirteen Weeks Ended
|
|
Twenty-Six Weeks Ended
|
||||||||||||||||||
|
June 30, 2012
|
|
June 25, 2011
|
|
% change
|
|
June 30, 2012
|
|
June 25, 2011
|
|
% change
|
||||||||||
|
(In millions, except percentages)
|
||||||||||||||||||||
Net income attributable to MillerCoors
|
$
|
438.3
|
|
|
$
|
398.7
|
|
|
9.9
|
%
|
|
$
|
713.6
|
|
|
$
|
633.4
|
|
|
12.7
|
%
|
MCBC economic interest
|
42
|
%
|
|
42
|
%
|
|
|
|
|
42
|
%
|
|
42
|
%
|
|
|
|
||||
MCBC proportionate share of MillerCoors net income
|
184.1
|
|
|
167.4
|
|
|
10.0
|
%
|
|
299.7
|
|
|
266.0
|
|
|
12.7
|
%
|
||||
Amortization of the difference between MCBC contributed cost basis and proportional share of the underlying equity in net assets of MillerCoors(1)
|
1.5
|
|
|
2.5
|
|
|
(40.0
|
)%
|
|
1.9
|
|
|
4.9
|
|
|
(61.2
|
)%
|
||||
Share-based compensation adjustment(1)
|
—
|
|
|
1.9
|
|
|
(100.0
|
)%
|
|
2.9
|
|
|
2.1
|
|
|
38.1
|
%
|
||||
Equity income in MillerCoors
|
$
|
185.6
|
|
|
$
|
171.8
|
|
|
8.0
|
%
|
|
$
|
304.5
|
|
|
$
|
273.0
|
|
|
11.5
|
%
|
Adjusting items:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
MCBC proportionate share of MillerCoors special items
|
(1.0
|
)
|
|
0.4
|
|
|
N/M
|
|
|
(1.0
|
)
|
|
1.0
|
|
|
N/M
|
|
||||
Non-GAAP: Underlying net income attributable to MillerCoors
|
$
|
184.6
|
|
|
$
|
172.2
|
|
|
7.2
|
%
|
|
$
|
303.5
|
|
|
$
|
274.0
|
|
|
10.8
|
%
|
(1)
|
See Part I—Item 1. Financial Statements, Note 5 "Investments" to the unaudited condensed consolidated financial statements for a detailed discussion of these equity method adjustments.
|
|
Thirteen Weeks Ended
|
|
Twenty-Six Weeks Ended
|
||||||||||||||||
|
June 30, 2012(1)
|
|
June 30, 2011
|
|
% change
|
|
June 30, 2012(1)
|
|
June 30, 2011
|
|
% change
|
||||||||
|
(In millions, except percentages)
|
||||||||||||||||||
Volume in hectoliters
|
0.911
|
|
|
—
|
|
|
N/M
|
|
0.911
|
|
|
—
|
|
|
N/M
|
||||
Net sales
|
$
|
57.3
|
|
|
$
|
—
|
|
|
N/M
|
|
$
|
57.3
|
|
|
$
|
—
|
|
|
N/M
|
Cost of goods sold
|
(37.0
|
)
|
|
—
|
|
|
N/M
|
|
(37.0
|
)
|
|
—
|
|
|
N/M
|
||||
Gross profit
|
20.3
|
|
|
—
|
|
|
N/M
|
|
20.3
|
|
|
—
|
|
|
N/M
|
||||
Marketing, general and administrative expenses
|
(12.3
|
)
|
|
—
|
|
|
N/M
|
|
(12.3
|
)
|
|
—
|
|
|
N/M
|
||||
Special items, net
|
—
|
|
|
—
|
|
|
N/M
|
|
—
|
|
|
—
|
|
|
N/M
|
||||
Operating income
|
8.0
|
|
|
—
|
|
|
N/M
|
|
8.0
|
|
|
—
|
|
|
N/M
|
||||
Other income (expense), net
|
4.4
|
|
|
—
|
|
|
N/M
|
|
4.4
|
|
|
—
|
|
|
N/M
|
||||
Income (loss) from continuing operations before income taxes
|
$
|
12.4
|
|
|
$
|
—
|
|
|
N/M
|
|
$
|
12.4
|
|
|
$
|
—
|
|
|
N/M
|
Adjusting items:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Acquisition-related inventory step-up
|
8.6
|
|
|
—
|
|
|
N/M
|
|
8.6
|
|
|
—
|
|
|
N/M
|
||||
Acquisition non-financing-related costs
|
2.5
|
|
|
—
|
|
|
N/M
|
|
$
|
2.5
|
|
|
|
|
N/M
|
||||
Unrealized foreign exchange gain on Acquisition financing instruments
|
(3.8
|
)
|
|
—
|
|
|
N/M
|
|
(3.8
|
)
|
|
|
|
N/M
|
|||||
Non-GAAP: Underlying pretax income
|
$
|
19.7
|
|
|
$
|
—
|
|
|
N/M
|
|
$
|
19.7
|
|
|
$
|
—
|
|
|
N/M
|
(1)
|
Represents Central Europe results from the Acquisition date of June 15, 2012 through June 30, 2012.
|
|
Thirteen Weeks Ended
|
|
Twenty-Six Weeks Ended
|
||||||||||||||||||
|
June 30, 2012
|
|
June 25, 2011
|
|
% change
|
|
June 30, 2012
|
|
June 25, 2011
|
|
% change
|
||||||||||
|
(In millions, except percentages)
|
||||||||||||||||||||
Volume in hectoliters(1)
|
2.220
|
|
|
2.371
|
|
|
(6.4
|
)%
|
|
3.959
|
|
|
4.142
|
|
|
(4.4
|
)%
|
||||
Net sales(1)
|
$
|
326.2
|
|
|
$
|
341.7
|
|
|
(4.5
|
)%
|
|
$
|
589.6
|
|
|
$
|
616.4
|
|
|
(4.3
|
)%
|
Cost of goods sold
|
(220.9
|
)
|
|
(215.5
|
)
|
|
2.5
|
%
|
|
(401.9
|
)
|
|
(403.5
|
)
|
|
(0.4
|
)%
|
||||
Gross profit
|
105.3
|
|
|
126.2
|
|
|
(16.6
|
)%
|
|
187.7
|
|
|
212.9
|
|
|
(11.8
|
)%
|
||||
Marketing, general and administrative expenses
|
(78.2
|
)
|
|
(93.2
|
)
|
|
(16.1
|
)%
|
|
(162.0
|
)
|
|
(175.6
|
)
|
|
(7.7
|
)%
|
||||
Special items, net
|
(11.7
|
)
|
|
(2.4
|
)
|
|
N/M
|
|
|
(10.0
|
)
|
|
(0.2
|
)
|
|
N/M
|
|
||||
Operating income
|
15.4
|
|
|
30.6
|
|
|
(49.7
|
)%
|
|
15.7
|
|
|
37.1
|
|
|
(57.7
|
)%
|
||||
Interest income(2)
|
1.4
|
|
|
1.4
|
|
|
—
|
%
|
|
2.9
|
|
|
2.9
|
|
|
—
|
%
|
||||
Other income (expense), net
|
(0.5
|
)
|
|
0.3
|
|
|
N/M
|
|
|
(1.0
|
)
|
|
(0.9
|
)
|
|
11.1
|
%
|
||||
Income (loss) from continuing operations before income taxes
|
$
|
16.3
|
|
|
$
|
32.3
|
|
|
(49.5
|
)%
|
|
$
|
17.6
|
|
|
$
|
39.1
|
|
|
(55.0
|
)%
|
Adjusting items:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Special items
|
11.7
|
|
|
2.4
|
|
|
N/M
|
|
|
10.0
|
|
|
0.2
|
|
|
N/M
|
|
||||
Employee related expense adjustment
|
—
|
|
|
—
|
|
|
N/M
|
|
|
(0.7
|
)
|
|
—
|
|
|
N/M
|
|
||||
Non-GAAP: Underlying pretax income (loss)
|
$
|
28.0
|
|
|
$
|
34.7
|
|
|
(19.3
|
)%
|
|
$
|
26.9
|
|
|
$
|
39.3
|
|
|
(31.6
|
)%
|
(1)
|
Reflects gross segment sales and for the
second
quarter of 2012 includes intercompany sales to MCI of 0.067 million hectoliters and $4.5 million of net sales. The
first half
of
2012
includes intercompany sales to MCI of 0.111 million hectoliters and $7.2 million of net sales. The
first half
of 2011 includes intercompany sales to MCI of 0.020 million hectoliters and $1.3 million of net sales. The offset is included within MCI cost of goods sold. These amounts are eliminated in the consolidated totals.
|
(2)
|
Interest income is earned on trade loans to U.K. on-premise customers and is typically driven by note receivable balances outstanding from period-to-period.
|
|
Thirteen Weeks Ended
|
|
Twenty-Six Weeks Ended
|
||||||||||||||||||
|
June 30, 2012
|
|
June 25, 2011
|
|
% change
|
|
June 30, 2012
|
|
June 25, 2011
|
|
% change
|
||||||||||
|
(In millions, except percentages)
|
||||||||||||||||||||
Volume in hectoliters(1)
|
0.324
|
|
|
0.245
|
|
|
32.2
|
%
|
|
0.548
|
|
|
0.439
|
|
|
24.8
|
%
|
||||
Net sales
|
$
|
37.1
|
|
|
$
|
28.2
|
|
|
31.6
|
%
|
|
$
|
65.2
|
|
|
$
|
49.8
|
|
|
30.9
|
%
|
Cost of goods sold(2)
|
(25.8
|
)
|
|
(18.1
|
)
|
|
42.5
|
%
|
|
(44.3
|
)
|
|
(32.0
|
)
|
|
38.4
|
%
|
||||
Gross profit
|
11.3
|
|
|
10.1
|
|
|
11.9
|
%
|
|
20.9
|
|
|
17.8
|
|
|
17.4
|
%
|
||||
Marketing, general and administrative expenses
|
(25.4
|
)
|
|
(20.2
|
)
|
|
25.7
|
%
|
|
(43.7
|
)
|
|
(35.4
|
)
|
|
23.4
|
%
|
||||
Special items, net
|
(10.4
|
)
|
|
(0.5
|
)
|
|
N/M
|
|
|
(10.4
|
)
|
|
(0.5
|
)
|
|
N/M
|
|
||||
Operating loss
|
(24.5
|
)
|
|
(10.6
|
)
|
|
131.1
|
%
|
|
(33.2
|
)
|
|
(18.1
|
)
|
|
83.4
|
%
|
||||
Other income (expense), net
|
0.2
|
|
|
—
|
|
|
N/M
|
|
|
0.3
|
|
|
0.1
|
|
|
N/M
|
|
||||
Income (loss) from continuing operations before income taxes
|
$
|
(24.3
|
)
|
|
$
|
(10.6
|
)
|
|
129.2
|
%
|
|
$
|
(32.9
|
)
|
|
$
|
(18.0
|
)
|
|
82.8
|
%
|
Adjusting items:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Special items
|
10.4
|
|
|
0.5
|
|
|
N/M
|
|
|
10.4
|
|
|
0.5
|
|
|
N/M
|
|
||||
Molson Coors Si'hai acquisition-related costs
|
$
|
0.5
|
|
|
$
|
—
|
|
|
—
|
%
|
|
0.5
|
|
|
—
|
|
|
—
|
%
|
||
Non-GAAP: Underlying pretax loss(3)
|
$
|
(13.4
|
)
|
|
$
|
(10.1
|
)
|
|
32.7
|
%
|
|
(22.0
|
)
|
|
(17.5
|
)
|
|
25.7
|
%
|
(1)
|
Excludes royalty volume of 0.102 million hectoliters and 0.060 million hectoliters in the
second
quarters
2012
and
2011
, respectively, and excludes royalty volume of 0.169 million hectoliters and 0.101 million hectoliters in the first halves of
2012
and
2011
, respectively.
|
(2)
|
Reflects gross segment amounts and for the
second
quarter of 2012 includes intercompany cost of goods sold from the U.K. of $4.5 million. The
first half
of
2012
includes intercompany cost of goods sold from the U.K. of $7.2 million. The
first half
of 2011 includes intercompany cost of goods sold from the U.K. of $1.3 million. The offset is included within U.K. net sales. These amounts are eliminated in the consolidated totals.
|
(3)
|
Includes loss attributable to noncontrolling interest of $7.5 million and $0.8 million in the
second
quarters
2012
and
2011
, respectively, and includes loss attributable to noncontrolling interest of $8.0 million and $1.7 million in the first halves
2012
and
2011
, respectively.
|
|
Thirteen Weeks Ended
|
|
Twenty-Six Weeks Ended
|
||||||||||||||||||
|
June 30, 2012
|
|
June 25, 2011
|
|
% change
|
|
June 30, 2012
|
|
June 25, 2011
|
|
% change
|
||||||||||
|
(In millions, except percentages)
|
||||||||||||||||||||
Volume in hectoliters
|
—
|
|
|
—
|
|
|
—
|
%
|
|
—
|
|
|
—
|
|
|
—
|
%
|
||||
Net sales
|
$
|
0.4
|
|
|
$
|
0.3
|
|
|
33.3
|
%
|
|
$
|
0.7
|
|
|
$
|
0.6
|
|
|
16.7
|
%
|
Cost of goods sold
|
1.0
|
|
|
(0.5
|
)
|
|
N/M
|
|
|
1.4
|
|
|
(0.7
|
)
|
|
N/M
|
|
||||
Gross profit
|
1.4
|
|
|
(0.2
|
)
|
|
N/M
|
|
|
2.1
|
|
|
(0.1
|
)
|
|
N/M
|
|
||||
Marketing, general and administrative expenses
|
(47.5
|
)
|
|
(28.3
|
)
|
|
67.8
|
%
|
|
(80.6
|
)
|
|
(56.6
|
)
|
|
42.4
|
%
|
||||
Special items, net
|
—
|
|
|
—
|
|
|
—
|
%
|
|
(1.1
|
)
|
|
—
|
|
|
—
|
%
|
||||
Operating loss
|
(46.1
|
)
|
|
(28.5
|
)
|
|
61.8
|
%
|
|
(79.6
|
)
|
|
(56.7
|
)
|
|
40.4
|
%
|
||||
Interest expense, net
|
(86.0
|
)
|
|
(29.1
|
)
|
|
195.5
|
%
|
|
(111.3
|
)
|
|
(57.4
|
)
|
|
93.9
|
%
|
||||
Other income (expense), net
|
(74.0
|
)
|
|
0.8
|
|
|
N/M
|
|
|
(74.1
|
)
|
|
3.0
|
|
|
N/M
|
|
||||
Income (loss) from continuing operations before income taxes
|
$
|
(206.1
|
)
|
|
$
|
(56.8
|
)
|
|
262.9
|
%
|
|
$
|
(265.0
|
)
|
|
$
|
(111.1
|
)
|
|
138.5
|
%
|
Adjusting items:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Special items
|
—
|
|
|
—
|
|
|
—
|
%
|
|
1.1
|
|
|
—
|
|
|
N/M
|
|
||||
Acquisition non-financing-related costs
|
22.8
|
|
|
—
|
|
|
N/M
|
|
|
28.9
|
|
|
—
|
|
|
N/M
|
|
||||
Acquisition financing-related costs
|
62.9
|
|
|
—
|
|
|
N/M
|
|
|
62.9
|
|
|
—
|
|
|
N/M
|
|
||||
Euro currency purchase loss
|
57.9
|
|
|
—
|
|
|
N/M
|
|
|
57.9
|
|
|
—
|
|
|
N/M
|
|
||||
Unrealized loss on convertible note
|
5.6
|
|
|
—
|
|
|
N/M
|
|
|
5.6
|
|
|
—
|
|
|
N/M
|
|
||||
Unrealized foreign exchange loss on Acquisition financing instruments
|
3.2
|
|
|
—
|
|
|
N/M
|
|
|
3.2
|
|
|
—
|
|
|
N/M
|
|
||||
Unrealized gain on commodity swaps
|
(1.5
|
)
|
|
—
|
|
|
N/M
|
|
|
(2.0
|
)
|
|
0.1
|
|
|
N/M
|
|
||||
Foster's total return swap
|
—
|
|
|
—
|
|
|
N/M
|
|
|
—
|
|
|
(0.8
|
)
|
|
N/M
|
|
||||
Changes to environmental litigation provisions
|
—
|
|
|
(0.1
|
)
|
|
N/M
|
|
|
—
|
|
|
—
|
|
|
—
|
%
|
||||
Non-GAAP: Underlying pretax loss
|
$
|
(55.2
|
)
|
|
$
|
(56.9
|
)
|
|
(3.0
|
)%
|
|
(107.4
|
)
|
|
(111.8
|
)
|
|
(3.9
|
)%
|
|
As of
|
||||||||||
|
June 30, 2012
|
|
December 31, 2011
|
|
June 25, 2011
|
||||||
Current assets
|
$
|
1,833.6
|
|
|
$
|
2,118.0
|
|
|
$
|
2,364.7
|
|
Less: Current liabilities
|
(2,286.1
|
)
|
|
(1,277.2
|
)
|
|
(1,847.8
|
)
|
|||
Add: Current portion of long-term debt and short-term borrowings
|
802.5
|
|
|
46.9
|
|
|
50.4
|
|
|||
Net working capital
|
$
|
350.0
|
|
|
$
|
887.7
|
|
|
$
|
567.3
|
|
•
|
Net income for the first half of
2012
including noncontrolling interest was lower by $128.4 million driven by financing and acquisition-related costs, input inflation and higher pension costs in Canada and the U.K., partially offset by higher equity income in the U.S., higher amortization of debt issuance costs and higher impairment charges.
|
•
|
This decrease was offset by improved working capital of $234.2 million, which includes the impact of 15 days of Central Europe working capital post-acquisition. This is primarily driven by lower accounts receivable balances in the U.K. and timing of accounts payable and accrued liability balances in the U.K., Central Europe, Canada and Corporate.
|
•
|
Higher net cash used in investing activities was driven by the Acquisition of $2,257.4 million, net of cash acquired compared to the $29.4 million acquisition of Sharp's Brewery Ltd. and the $10.3 million acquisition of a controlling stake of Molson Coors Cobra India in the first half of 2011.
|
•
|
Higher net cash used in investing activities further relates to the $110.6 million settlement in the first quarter of 2012 of approximately 33% of our remaining cross currency swaps designated as a net investment hedge. See Part I—Item 1. Financial Statements, Note 14 "Derivative Instruments and Hedging Activities" to the unaudited condensed consolidated financial statements.
|
•
|
Higher net cash provided by financing activities was driven by proceeds from issuances of long-term debt of $2,195.4 million related to the Acquisition, partially offset by $37.0 million higher debt issuance costs in the first half of 2012.
|
•
|
Higher net cash provided by financing activities also increased by $14.5 million related to the exercise of stock options. The number of options exercised increased by 0.5 million shares and was driven by a significant number of awards nearing expiration.
|
•
|
This was partially offset by the $424.3 million repayment of the Subordinated Deferred Payment Obligation in the first half of 2012, which we assumed as part of the Acquisition. Additionally, in the first half of 2012, we repaid the remaining $44.8 million outstanding of our
$850 million
6.375%
10-year notes that were due in May 2012.
|
|
|
For the Twenty-Six
Weeks Ended
|
||||||
|
|
June 30, 2012
|
|
June 25, 2011
|
||||
|
|
(In millions)
|
||||||
U.S. GAAP:
|
Net Cash Provided by Operating Activities(1)
|
$
|
397.4
|
|
|
$
|
271.8
|
|
Less:
|
Additions to properties(1)
|
(81.4
|
)
|
|
(72.5
|
)
|
||
Less:
|
Investment in MillerCoors(1)
|
(565.7
|
)
|
|
(470.4
|
)
|
||
Add:
|
Return of capital from MillerCoors(1)
|
459.9
|
|
|
376.4
|
|
||
Add:
|
Proceeds from sale of assets and businesses(1)
|
1.3
|
|
|
1.2
|
|
||
Add:
|
Loss related to settlement of Treasury Locks(2)
|
39.2
|
|
|
—
|
|
||
Add:
|
Euro currency purchase loss(2)
|
57.9
|
|
|
—
|
|
||
Add:
|
Acquisition non-financing related costs(2)
|
12.2
|
|
|
—
|
|
||
Add:
|
MillerCoors investments in businesses(3)
|
14.4
|
|
|
—
|
|
||
Add:
|
Proceeds from settlements of derivative instruments(1)
|
—
|
|
|
15.4
|
|
||
Non-GAAP:
|
Underlying Free Cash Flow (adjusted for special cash sources/uses at MillerCoors)
|
$
|
335.2
|
|
|
$
|
121.9
|
|
(1)
|
Included in net cash used in investing activities.
|
(2)
|
Costs related to the Acquisition, included in net cash provided by operating activities.
|
(3)
|
Amounts represent our proportionate 42% share of the cash flow impacts, as determined by management. These items adjust operating cash flow to arrive at our underlying free cash flow for the first two quarters of the year and the comparable prior-year period.
|
|
Payments due by period
|
||||||||||||||||||
|
Total
|
|
Less than 1 year
|
|
1-3 years
|
|
3-5 years
|
|
More than 5 years
|
||||||||||
|
(In millions)
|
||||||||||||||||||
Debt obligations
|
$
|
4,907.1
|
|
|
$
|
783.5
|
|
|
$
|
635.3
|
|
|
$
|
1,396.5
|
|
|
$
|
2,091.8
|
|
Interest payments on debt obligations
|
2,134.4
|
|
|
161.8
|
|
|
294.4
|
|
|
210.5
|
|
|
1,467.7
|
|
|||||
Derivative payments
|
237.0
|
|
|
27.2
|
|
|
209.8
|
|
|
—
|
|
|
—
|
|
|||||
Retirement plan expenditures
|
132.9
|
|
|
45.2
|
|
|
16.8
|
|
|
18.9
|
|
|
52.0
|
|
|||||
Operating leases
|
123.4
|
|
|
33.4
|
|
|
47.6
|
|
|
22.6
|
|
|
19.8
|
|
|||||
Capital leases
|
1.6
|
|
|
0.5
|
|
|
1.0
|
|
|
0.1
|
|
|
—
|
|
|||||
Other long-term obligations
|
2,995.5
|
|
|
894.4
|
|
|
974.8
|
|
|
680.8
|
|
|
445.5
|
|
|||||
Total obligations
|
$
|
10,531.9
|
|
|
$
|
1,946.0
|
|
|
$
|
2,179.7
|
|
|
$
|
2,329.4
|
|
|
$
|
4,076.8
|
|
|
Amount of commitment expiration per period
|
||||||||||||||||||
|
Total amounts
committed
|
|
Less than 1
year
|
|
1 - 3 years
|
|
3 - 5 years
|
|
More than 5
years
|
||||||||||
|
(In millions)
|
||||||||||||||||||
Standby letters of credit
|
$
|
37.0
|
|
|
$
|
37.0
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
Total
|
|
Less than
1 year
|
|
1 - 3 years
|
|
3 - 5 years
|
|
More than
5 years
|
||||||||
(In millions)
|
||||||||||||||||
$(229.8)
|
|
$
|
(24.1
|
)
|
|
$
|
(205.7
|
)
|
|
$
|
—
|
|
|
$
|
—
|
|
|
As of
|
||||||
Estimated fair value volatility
|
June 30, 2012
|
|
December 31, 2011
|
||||
|
(In millions)
|
||||||
Foreign currency risk:
|
|
|
|
||||
Forwards
|
$
|
(69.6
|
)
|
|
$
|
(72.6
|
)
|
Swaps
|
$
|
(56.8
|
)
|
|
$
|
(46.4
|
)
|
Foreign currency denominated debt
|
$
|
(187.5
|
)
|
|
$
|
(106.7
|
)
|
Equity conversion feature of debt
|
$
|
(9.8
|
)
|
|
$
|
—
|
|
Interest rate risk:
|
|
|
|
||||
Debt
|
$
|
(122.5
|
)
|
|
$
|
(17.5
|
)
|
Swaps
|
$
|
(32.7
|
)
|
|
$
|
(44.4
|
)
|
Commodity price risk:
|
|
|
|
||||
Swaps
|
$
|
(1.5
|
)
|
|
$
|
(2.7
|
)
|
Equity price risk:
|
|
|
|
||||
Equity conversion feature of debt
|
$
|
(18.0
|
)
|
|
$
|
—
|
|
•
|
failure to implement our business plan for the combined business;
|
•
|
unanticipated issues in integrating manufacturing, logistics, information, communications and other systems;
|
•
|
possible inconsistencies in standards, controls, procedures and policies, and compensation structures between
|
•
|
failure to retain key customers and suppliers;
|
•
|
unanticipated changes in applicable laws and regulations;
|
•
|
failure to retain key employees;
|
•
|
operating risks inherent in MCCEs business and our business;
|
•
|
unanticipated issues, expenses and liabilities;
|
•
|
unfamiliarity with operating in Central Europe; and
|
•
|
disputes with minority shareholders of MCCE's subsidiary, Trebjesa AD, that may disrupt our integration efforts or cause us to need to buy out their interests.
|
Exhibit
Number
|
|
Document Description
|
|
2.1
|
|
Agreement, dated as of April 3, 2012, by and among Molson Coors Brewing Company, Molson Coors Holdco - 2 Inc. and Starbev L.P. (incorporated by reference to Exhibit 2.1 to our Current Report on Form 8-K filed on April 3, 2012).
|
|
2.2
|
|
Amendment and Novation Agreement, dated as of June 14, 2012, by and between Molson Coors Holdco 2 LLC, Molson Coors Netherlands B.V., Molson Coors Brewing Company, Starbev L.P. and the other individuals party thereto (incorporated by reference to Exhibit 10.4 to our Current Report on Form 8-K filed on June 18, 2012).
|
|
2.3
|
|
Management Warranty Deed, dated as of April 3, 2012, by and among the management warrantors named therein, Starbev L.P. and Molson Coors Holdco - 2 Inc. (incorporated by reference to Exhibit 2.2 to our Current Report on Form 8-K filed on April 3, 2012).
|
|
4.1
|
|
Indenture, dated as of May 3, 2012, by and among Molson Coors Brewing Company, the Guarantors party thereto and Deutsche Bank Trust Company Americas, as Trustee (incorporated by reference to Exhibit 4.1 to our Current Report on Form 8-K filed on May 3, 2012).
|
|
4.2
|
|
First Supplemental Indenture, dated as of May 3, 2012, to the Indenture dated May 3, 2012, by and among Molson Coors Brewing Company, the Guarantors party thereto and Deutsche Bank Trust Company Americas, as Trustee (incorporated by reference to Exhibit 4.2 to our Current Report on Form 8-K filed on May 3, 2012).
|
|
4.3
|
|
Registration Rights Agreement, dated as of June 15, 2012, among Molson Coors Brewing Company, Molson Coors Holdco Inc. and Starbev L.P. (incorporated by reference to Exhibit 10.2 to our Current Report on Form 8-K filed on June 18, 2012).
|
|
4.4
|
|
€500,000,000 Zero-Coupon Senior Unsecured Convertible Bond due 2013 (incorporated by reference to Exhibit 10.1 to our Current Report on Form 8-K filed on June 18, 2012).
|
|
4.5
|
|
Twelfth Supplemental Indenture, dated as of June 15, 2012, to the Indenture dated September 22, 2005, by and among Molson Coors Capital Finance, the Guarantors party thereto and Computershare Trust Company of Canada, as Canadian, as Trustee.
|
|
4.6
|
|
Eleventh Supplemental Indenture, dated as of June 15, 2012, to the Indenture dated June 15, 2007, by and among Molson Coors Brewing Company, the Guarantors party thereto, and Deutsche Bank Trust Company Americas, as Trustee.
|
|
4.7
|
|
Sixth Supplemental Indenture, dated as of June 15, 2012, to the Indenture dated October 6, 2010, by and among Molson Coors International LP, the Guarantors party thereto, and Computershare Trust Company of Canada, as Trustee.
|
|
4.8
|
|
Second Supplemental Indenture, dated as of June 15, 2012, to the Indenture dated May, 3, 2012, by and among Molson Coors BREWING Company, the Guarantors party thereto, and Deutsche Bank Trust Company Americas, as Trustee.
|
|
10.1
|
|
Term Loan Agreement, dated as of April 3, 2012, by and among Molson Coors Brewing Company, the Lenders party thereto, and Deutsche Bank AG New York Branch, as Administrative Agent (incorporated by reference to Exhibit 10.1 to our Current Report on Form 8-K filed on April 3, 2012).
|
|
|
|
|
|
MOLSON COORS BREWING COMPANY
|
||
|
By:
|
|
/s/ ZAHIR IBRAHIM
|
|
|
|
Zahir Ibrahim
Vice President and Controller
(Chief Accounting Officer)
August 7, 2012
|
|
MOLSON COORS CAPITAL FINANCE ULC
|
|
|
By:
|
/s/ Julio Ramirez
|
|
|
Name: Julio Ramirez
|
|
|
Title: Treasurer
|
|
|
|
GUARANTORS:
|
COORS BREWING COMPANY
|
|
|
By:
|
/s/ Julio Ramirez
|
|
|
Name: Julio Ramirez
|
|
|
Title: Vice President – Taxation and Treasurer
|
|
|
|
|
MOLSON COORS BREWING COMPANY
|
|
|
By:
|
/s/ Julio Ramirez
|
|
|
Name: Julio Ramirez
|
|
|
Title: Vice President ,Treasurer, Tax & Strategic Finance
|
|
|
|
|
CBC HOLDCO LLC
|
|
|
By:
|
CBC HOLDCO 2 LLC,
Managing Member |
|
By:
|
/s/ Julio Ramirez
|
|
|
Name: Julio Ramirez
|
|
|
Title: Vice President – Taxation and Treasurer
|
|
MOLSON COORS INTERNATIONAL LP
|
|
|
By:
|
MOLSON COORS INTERNATIONAL GENERAL, ULC, Its General Partner
|
|
By:
|
/s/ Julio Ramirez
|
|
|
Name: Julio Ramirez
|
|
|
Title: Vice President – Taxation and Treasurer
|
|
|
|
|
MOLSON COORS INTERNATIONAL GENERAL, ULC
|
|
|
By:
|
/s/ Julio Ramirez
|
|
|
Name: Julio Ramirez
|
|
|
Title: Treasurer
|
|
|
|
|
COORS INTERNATIONAL HOLDCO, ULC
|
|
|
By:
|
/s/ Julio Ramirez
|
|
|
Name: Julio Ramirez
|
|
|
Title: Treasurer
|
|
|
|
|
MOLSON COORS CALLCO ULC
|
|
|
By:
|
/s/ Julio Ramirez
|
|
|
Name: Julio Ramirez
|
|
|
Title: Treasurer
|
|
|
|
|
MOLSON CANADA 2005
|
|
|
By:
|
/s/ Kelly L. Brown
|
|
|
Name: Kelly L. Brown
|
|
|
Title: Chief Legal Officer
|
|
MC HOLDING COMPANY LLC
|
|
|
By:
|
/s/ Julio Ramirez
|
|
|
Name: Julio Ramirez
|
|
|
Title: Vice President – Taxation and Treasurer
|
|
|
|
|
CBC HOLDCO 2 LLC
|
|
|
By:
|
COORS BREWING COMPANY,
Managing Member |
|
By:
|
/s/ Julio Ramirez
|
|
|
Name: Julio Ramirez
|
|
|
Title: Vice President – Taxation and Treasurer
|
|
|
|
|
NEWCO3, INC.
|
|
|
By:
|
/s/ Julio Ramirez
|
|
|
Name: Julio Ramirez
|
|
|
Title: Treasurer
|
|
|
|
|
MOLSON COORS HOLDCO INC.
|
|
|
By:
|
/s/ Julio Ramirez
|
|
|
Name: Julio Ramirez
|
|
|
Title: Treasurer
|
|
|
|
|
MOLSON COORS BREWING COMPANY (UK) LIMITED
|
|
|
By:
|
/s/ Susan Albion
|
|
|
Name: Susan Albion
|
|
|
Title: Legal Director
|
|
|
|
|
MOLSON COORS HOLDINGS LIMITED
|
|
|
By:
|
/s/ Susan Albion
|
|
|
Name: Susan Albion
|
|
|
Title: Legal Director
|
|
|
|
|
GOLDEN ACQUISITION
|
|
|
By:
|
/s/ Susan Albion
|
|
|
Name: Susan Albion
|
|
|
Title: Legal Director
|
|
|
|
CANADIAN TRUSTEE:
|
COMPUTERSHARE TRUST COMPANY OF CANADA, as Canadian Trustee
|
|
|
By:
|
|
|
|
Name:
|
|
|
Title:
|
|
|
|
|
By:
|
|
|
|
Name:
|
|
|
Title:
|
|
MOLSON COORS BREWING COMPANY
|
|
|
By:
|
/s/ Julio Ramirez
|
|
|
Name: Julio Ramirez
|
|
|
Title: Vice President, Treasurer, and Tax & Strategic Finance
|
|
|
|
GUARANTORS:
|
MOLSON COORS CAPITAL FINANCE ULC
|
|
|
By:
|
/s/ Julio Ramirez
|
|
|
Name: Julio Ramirez
|
|
|
Title: Treasurer
|
|
|
|
|
COORS BREWING COMPANY
|
|
|
By:
|
/s/ Julio Ramirez
|
|
|
Name: Julio Ramirez
|
|
|
Title: Vice President – Taxation and Treasurer
|
|
|
|
|
CBC HOLDCO LLC
|
|
|
By:
|
CBC HOLDCO 2 LLC,
Managing Member |
|
By:
|
/s/ Julio Ramirez
|
|
|
Name: Julio Ramirez
|
|
|
Title: Vice President – Taxation and Treasurer
|
|
MOLSON COORS INTERNATIONAL LP
|
|
|
By:
|
MOLSON COORS INTERNATIONAL GENERAL, ULC, Its General Partner
|
|
By:
|
/s/ Julio Ramirez
|
|
|
Name: Julio Ramirez
|
|
|
Title: Vice President – Taxation and Treasurer
|
|
|
|
|
MOLSON COORS INTERNATIONAL GENERAL, ULC
|
|
|
By:
|
/s/ Julio Ramirez
|
|
|
Name: Julio Ramirez
|
|
|
Title: Treasurer
|
|
|
|
|
COORS INTERNATIONAL HOLDCO, ULC
|
|
|
By:
|
/s/ Julio Ramirez
|
|
|
Name: Julio Ramirez
|
|
|
Title: Treasurer
|
|
|
|
MOLSON COORS CALLCO ULC
|
|
|
By:
|
/s/ Julio Ramirez
|
|
|
Name: Julio Ramirez
|
|
|
Title: Treasurer
|
|
|
|
|
MOLSON CANADA 2005
|
|
|
By:
|
/s/ Kelly L. Brown
|
|
|
Name: Kelly L. Brown
|
|
|
Title: Chief Legal Officer
|
|
|
|
|
MC HOLDING COMPANY LLC
|
|
|
By:
|
/s/ Julio Ramirez
|
|
|
Name: Julio Ramirez
|
|
|
Title: Vice President – Taxation and Treasurer
|
|
|
|
|
CBC HOLDCO 2 LLC
|
|
|
By:
|
COORS BREWING COMPANY,
Managing Member |
|
By:
|
/s/ Julio Ramirez
|
|
|
Name: Julio Ramirez
|
|
|
Title: Vice President – Taxation and Treasurer
|
|
|
|
|
NEWCO3, INC.
|
|
|
By:
|
/s/ Julio Ramirez
|
|
|
Name: Julio Ramirez
|
|
|
Title: Treasurer
|
|
|
|
|
MOLSON COORS HOLDCO INC.
|
|
|
By:
|
/s/ Julio Ramirez
|
|
|
Name: Julio Ramirez
|
|
|
Title: Treasurer
|
|
|
|
|
MOLSON COORS BREWING COMPANY (UK) LIMITED
|
|
|
By:
|
/s/ Susan Albion
|
|
|
Name: Susan Albion
|
|
|
Title: Legal Director
|
|
MOLSON COORS HOLDINGS LIMITED
|
|
|
By:
|
/s/ Susan Albion
|
|
|
Name: Susan Albion
|
|
|
Title: Legal Director
|
|
|
|
|
GOLDEN ACQUISITION
|
|
|
By:
|
/s/ Susan Albion
|
|
|
Name: Susan Albion
|
|
|
Title: Legal Director
|
|
|
|
|
DEUTSCHE BANK TRUST COMPANY AMERICAS by DEUTSCHE BANK NATIONAL TRUST COMPANY, as Trustee
|
|
|
By:
|
|
|
|
Name:
|
|
|
Title:
|
|
|
|
|
By:
|
|
|
|
Name:
|
|
|
Title:
|
|
MOLSON COORS INTERNATIONAL LP
|
|
|
By:
|
MOLSON COORS INTERNATIONAL GENERAL, ULC, Its General Partner
|
|
By:
|
/s/ Julio Ramirez
|
|
|
Name: Julio Ramirez
|
|
|
Title: Treasurer
|
|
|
|
GUARANTORS:
|
MOLSON COORS BREWING COMPANY
|
|
|
By:
|
/s/ Julio Ramirez
|
|
|
Name: Julio Ramirez
|
|
|
Title: Vice President, Treasurer, Tax & Strategic Finance
|
|
|
|
|
COORS BREWING COMPANY
|
|
|
By:
|
/s/ Julio Ramirez
|
|
|
Name: Julio Ramirez
|
|
|
Title: Vice President – Taxation and Treasurer
|
|
|
|
|
MOLSON CANADA 2005
|
|
|
By:
|
/s/ Kelly L. Brown
|
|
|
Name: Kelly L. Brown
|
|
|
Title: Chief Legal Officer
|
|
CBC HOLDCO LLC
|
|
|
By:
|
COORS BREWING COMPANY,
Managing Member |
|
By:
|
/s/ Julio Ramirez
|
|
|
Name: Julio Ramirez
|
|
|
Title: Vice President – Taxation and Treasurer
|
|
|
|
|
COORS INTERNATIONAL HOLDCO, ULC
|
|
|
By:
|
/s/ Julio Ramirez
|
|
|
Name: Julio Ramirez
|
|
|
Title: Treasurer
|
|
|
|
|
MOLSON COORS CALLCO ULC
|
|
|
By:
|
/s/ Julio Ramirez
|
|
|
Name: Julio Ramirez
|
|
|
Title: Treasurer
|
|
|
|
|
MOLSON COORS INTERNATIONAL GENERAL, ULC
|
|
|
By:
|
/s/ Julio Ramirez
|
|
|
Name: Julio Ramirez
|
|
|
Title: Treasurer
|
|
|
|
|
MOLSON COORS CAPITAL FINANCE ULC
|
|
|
By:
|
/s/ Julio Ramirez
|
|
|
Name: Julio Ramirez
|
|
|
Title: Treasurer
|
|
MC HOLDING COMPANY LLC
|
|
|
By:
|
/s/ Julio Ramirez
|
|
|
Name: Julio Ramirez
|
|
|
Title: Vice President – Taxation and Treasurer
|
|
|
|
|
CBC HOLDCO 2 LLC
|
|
|
By:
|
COORS BREWING COMPANY,
Managing Member |
|
By:
|
/s/ Julio Ramirez
|
|
|
Name: Julio Ramirez
|
|
|
Title: Vice President – Taxation and Treasurer
|
|
|
|
|
NEWCO3, INC.
|
|
By:
|
/s/ Julio Ramirez
|
|
|
Name: Julio Ramirez
|
|
|
Title: Treasurer
|
|
|
|
|
MOLSON COORS HOLDCO INC.
|
|
|
By:
|
/s/ Julio Ramirez
|
|
|
Name: Julio Ramirez
|
|
|
Title: Treasurer
|
|
|
|
|
MOLSON COORS BREWING COMPANY (UK)
LIMITED
|
|
|
By:
|
/s/ Susan Albion
|
|
|
Name: Susan Albion
|
|
|
Title: Legal Director
|
|
|
|
|
MOLSON COORS HOLDINGS LIMITED
|
|
|
By:
|
/s/ Susan Albion
|
|
|
Name: Susan Albion
|
|
|
Title: Legal Director
|
|
|
|
|
GOLDEN ACQUISITION
|
|
|
By:
|
/s/ Susan Albion
|
|
|
Name: Susan Albion
|
|
|
Title: Legal Director
|
|
|
|
|
COMPUTERSHARE TRUST COMPANY OF CANADA, as Canadian Trustee
|
|
|
By:
|
|
|
|
Name:
|
|
|
Title:
|
|
|
|
|
By:
|
|
|
|
Name:
|
|
|
Title:
|
|
MOLSON COORS BREWING COMPANY
|
|
|
By:
|
/s/ Julio Ramirez
|
|
|
Name: Julio Ramirez
|
|
|
Title: Vice President, Treasurer, Tax & Strategic Finance
|
|
|
|
GUARANTORS:
|
MOLSON COORS CAPITAL FINANCE ULC
|
|
By:
|
/s/ Julio Ramirez
|
|
|
Name: Julio Ramirez
|
|
|
Title: Treasurer
|
|
|
|
|
COORS BREWING COMPANY
|
|
|
By:
|
/s/ Julio Ramirez
|
|
|
Name: Julio Ramirez
|
|
|
Title: Vice President – Taxation and Treasurer
|
|
|
|
|
CBC HOLDCO LLC
|
|
|
By:
|
CBC HOLDCO 2 LLC,
Managing Member |
|
By:
|
/s/ Julio Ramirez
|
|
|
Name: Julio Ramirez
|
|
|
Title: Vice President – Taxation and Treasurer
|
|
|
|
|
MOLSON COORS INTERNATIONAL LP
|
|
|
By:
|
MOLSON COORS INTERNATIONAL GENERAL, ULC, Its General Partner
|
|
By:
|
/s/ Julio Ramirez
|
|
|
Name: Julio Ramirez
|
|
|
Title: Vice President – Taxation and Treasurer
|
|
|
|
|
MOLSON COORS INTERNATIONAL GENERAL, ULC
|
|
|
By:
|
/s/ Julio Ramirez
|
|
|
Name: Julio Ramirez
|
|
|
Title: Treasurer
|
|
|
|
|
COORS INTERNATIONAL HOLDCO, ULC
|
|
|
By:
|
/s/ Julio Ramirez
|
|
|
Name: Julio Ramirez
|
|
|
Title: Treasurer
|
|
|
|
|
MOLSON COORS CALLCO ULC
|
|
|
By:
|
/s/ Julio Ramirez
|
|
|
Name: Julio Ramirez
|
|
|
Title: Treasurer
|
|
|
|
|
MOLSON CANADA 2005
|
|
|
By:
|
/s/ Kelly L. Brown
|
|
|
Name: Kelly L. Brown
|
|
|
Title: Chief Legal Officer
|
|
|
|
|
MC HOLDING COMPANY LLC
|
|
|
By:
|
/s/ Julio Ramirez
|
|
|
Name: Julio Ramirez
|
|
|
Title: Vice President – Taxation and Treasurer
|
|
|
|
|
CBC HOLDCO 2 LLC
|
|
|
By:
|
COORS BREWING COMPANY,
Managing Member |
|
By:
|
/s/ Julio Ramirez
|
|
|
Name: Julio Ramirez
|
|
|
Title: Vice President – Taxation and Treasurer
|
|
|
|
|
NEWCO3, INC.
|
|
|
By:
|
/s/ Julio Ramirez
|
|
|
Name: Julio Ramirez
|
|
|
Title: Treasurer
|
|
|
|
|
MOLSON COORS HOLDCO, INC.
|
|
|
By:
|
/s/ Julio Ramirez
|
|
|
Name: Julio Ramirez
|
|
|
Title: Treasurer
|
|
|
|
|
MOLSON COORS BREWING COMPANY (UK) LIMITED
|
|
|
By:
|
/s/ Susan Albion
|
|
|
Name: Susan Albion
|
|
|
Title: Legal Director
|
|
|
|
|
MOLSON COORS HOLDINGS LIMITED
|
|
|
By:
|
/s/ Susan Albion
|
|
|
Name: Susan Albion
|
|
|
Title: Legal Director
|
|
|
|
|
GOLDEN ACQUISITION
|
|
|
By:
|
/s/ Susan Albion
|
|
|
Name: Susan Albion
|
|
|
Title: Legal Director
|
|
|
|
DEUTSCHE BANK TRUST COMPANY AMERICAS by DEUTSCHE BANK NATIONAL TRUST COMPANY, as Trustee
|
|
|
By:
|
|
|
|
Name:
|
|
|
Title:
|
|
|
|
|
By:
|
|
|
|
Name:
|
|
|
Title:
|
•
|
The National Labor Relations Act, as amended;
|
•
|
Title VII of the Civil Rights Act of 1964, as amended;
|
•
|
The Civil Rights Act of 1991;
|
•
|
Sections 1981 through 1988 of Title 42 of the United States Code, as amended;
|
•
|
The Employee Retirement Income Security Act of 1974, as amended;
|
•
|
The Immigration Reform and Control Act, as amended;
|
•
|
The Americans with Disabilities Act of 1990, as amended;
|
•
|
The Age Discrimination in Employment Act of 1967, as amended;
|
•
|
The Older Workers Benefit Protection Act of 1990;
|
•
|
The Worker Adjustment and Retraining Notification Act, as amended;
|
•
|
The Occupational Safety and Health Act, as amended;
|
•
|
The Family and Medical Leave Act of 1993;
|
•
|
Any other federal, state or local civil or human rights law or any other local, state or federal law, regulation or ordinance; or
|
•
|
Any public policy, contract, tort, or common law.
|
Date:
|
[Participant’s Name] |
MOLSON COORS BREWING COMPANY (UK) LIMITED By |
/s/ Susan Albion
Name: Susan Albion |
|
ADMINISTRATIVE AGENT:
DEUTSCHE BANK AG NEW YORK BRANCH, as Administrative Agent
By: /s/ Heidi Sandquist
Title: Director
By:
Title: |
MOLSON COORS BREWING COMPANY (UK) LIMITED By |
/s/ Susan Albion
Name: Susan Albion |
•
|
Your base salary as well as your short- and long-term incentive targets will continue at their current level.
|
◦
|
The individual and business unit components of your annual MCIP award will be based on criteria to be agreed between you and me.
|
•
|
On the first trading day of the month following the commencement of this assignment, you will be granted Molson Coors restricted stock units in the amount of $300,000, vesting in two equal installments on the first and second anniversary of the grant date.
|
•
|
This assignment is located in Burton-on-Trent, and will be subject to the terms of the Molson Coors Short-Term International Assignment Policy with certain enhancements, including but not limited to the following:
|
o
|
Continued participation in all US benefits and perquisites;
|
o
|
A housing and utilities allowance based on a furnished, executive-quality three bedroom home in the assignment location;
|
o
|
A cost of living allowance or per diem;
|
o
|
A car in the assignment location; and
|
o
|
Tax return preparation and tax equalization for the duration of the assignment and
|
•
|
A grant valued at $250,000, consisting of one-half Molson Coors restricted stock units and one-half Molson Coors stock options (based on the grant date Black-Scholes value), vesting in two equal annual installments on the first and second anniversaries of the grant date; and
|
•
|
A grant valued at $500,000, consisting of one-half Molson Coors restricted stock units and one-half Molson Coors stock options (based on the grant date Black-Scholes value), where the RSUs vest in full on the third anniversary of the grant date, and the stock options vest in three equal annual installments on the first, second and third anniversaries of the grant date.
|
1.
|
I have reviewed this quarterly report on Form 10-Q of Molson Coors Brewing Company;
|
2.
|
Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;
|
3.
|
Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;
|
4.
|
The registrant's other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:
|
a.
|
Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;
|
b.
|
Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;
|
c.
|
Evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and
|
d.
|
Disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the registrant's most recent fiscal quarter (the registrant's fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting.
|
5.
|
The registrant's other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant's auditors and the audit committee of the registrant's board of directors:
|
a.
|
All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize and report financial information; and
|
b.
|
Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting.
|
|
|
/s/ PETER SWINBURN
|
|
|
Peter Swinburn
President and Chief Executive Officer
(Principal Executive Officer)
|
|
|
August 7, 2012
|
1.
|
I have reviewed this quarterly report on Form 10-Q of Molson Coors Brewing Company;
|
2.
|
Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;
|
3.
|
Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;
|
4.
|
The registrant's other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:
|
a.
|
Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;
|
b.
|
Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;
|
c.
|
Evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and
|
d.
|
Disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the registrant's most recent fiscal quarter (the registrant's fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting.
|
5.
|
The registrant's other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant's auditors and the audit committee of the registrant's board of directors:
|
a.
|
All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize and report financial information; and
|
b.
|
Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting.
|
|
|
/s/ GAVIN HATTERSLEY
|
|
|
Gavin Hattersley
Chief Financial Officer
(Principal Financial Officer)
|
|
|
August 7, 2012
|
(a)
|
the Quarterly Report on Form 10-Q of the Company for the quarterly period ended
June 30, 2012
filed on the date hereof with the Securities and Exchange Commission (the "Report") fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934; and
|
(b)
|
Information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.
|
|
|
/s/ PETER SWINBURN
|
|
|
Peter Swinburn
President and Chief Executive Officer
(Principal Executive Officer)
|
|
|
August 7, 2012
|
|
|
|
|
|
/s/ GAVIN HATTERSLEY
|
|
|
Stewart Hattersley
Chief Financial Officer
(Principal Financial Officer)
|
|
|
August 7, 2012
|