Investments

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

Equity Investments

Investment in MillerCoors

Summarized financial information for MillerCoors is as follows:

Condensed Balance Sheets



	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

Results of Operations



	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

The following represents MCBC's proportional share in net income attributable to MillerCoors reported under the equity method:



	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.

During the second quarter of 2012, we had $5.3 million of beer sales to MillerCoors and $3.1 million of beer purchases from MillerCoors. During the second quarter of 2011, we had $9.5 million of beer sales to MillerCoors and $2.2 million of beer purchases from MillerCoors. During the first half of 2012, we had $10.2 million of beer sales to MillerCoors and $5.4 million of beer purchases from MillerCoors. During the first half of 2011, we had $17.5 million of beer sales to MillerCoors and $4.7 million of beer purchases from MillerCoors.

For the second quarter of 2012, we recorded $0.9 million of service agreement costs and other charges to MillerCoors and $0.4 million of service agreement costs from MillerCoors. For the second quarter of 2011, we recorded $2.0 million of service agreement costs and other charges to MillerCoors and $1.9 million of service agreement costs from MillerCoors. For the first half of 2012, we recorded $2.0 million of service agreement costs and other charges to MillerCoors and $0.6 million of service agreement costs from MillerCoors. For the first half of 2011, we recorded $3.4 million of service agreement costs and other charges to MillerCoors and $2.1 million of service agreement costs from MillerCoors.

As of June 30, 2012, and December 31, 2011, we had $1.4 million of net payables due to MillerCoors and $2.0 million of net receivables due from MillerCoors, respectively.

Consolidated Investments

The following summarizes the assets of our consolidated VIEs, including noncontrolling interests. None of our consolidated VIEs held debt as of June 30, 2012, or December 31, 2011.



	As of
	June 30, 2012		December 31, 2011
	Total assets
	(In millions)
Grolsch	$	16.3	$	20.4
Cobra U.K.	$	29.8	$	31.6

The following summarizes the results of operations of our consolidated VIEs (including noncontrolling interests).



	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.