Segment Reporting

Our reporting segments are based on the key geographic regions in which we operate, which are the basis on which our chief operating decision maker evaluates the performance of the business.

Reporting Segments

Canada

The Canada segment consists of our production, marketing and sales of the Molson family of brands, Coors Light, Rickard's, Carling, and other owned and licensed brands in Canada. Also included in the Canada segment is MMI, our joint venture with Grupo Modelo S.A.B. de C.V. ("Modelo"), established to import, distribute, and market the Modelo beer brand portfolio across all Canadian provinces and territories. MMI is accounted for under the equity method. In addition, the Canada segment includes BRI, our joint venture arrangement related to the distribution and retail sale of beer in Ontario, and BDL, our joint venture arrangement related to the distribution of beer in the western provinces. Both BRI and BDL are accounted for as equity method investments.

We have an agreement with Heineken N.V. ("Heineken") that grants us the right to import, market, distribute and sell Heineken products and with SABMiller plc ("SABMiller") that grants us the right to brew or import, market, distribute and sell several SABMiller brands. We also contract brew and package Labatt Blue and Asahi for the U.S. market.

United States (U.S.)

The U.S. segment consists of our interest, and results from our interest, in MillerCoors, our joint venture with SABMiller for all U.S. operations. MillerCoors produces, markets, and sells beer brands in the U.S. and Puerto Rico. Its major brands include Coors Light, Miller Lite, Miller High Life, Keystone Light, Blue Moon, Leinenkugel's, Coors Banquet and Miller Genuine Draft. Our interest in MillerCoors is accounted for under the equity method of accounting. See Note 5, "Investments" for further discussion.

Central Europe

As a result of the Acquisition, our Central Europe segment consists of our production, marketing and sales of our brands principally in Czech Republic, Serbia, Croatia, Romania, Bulgaria, Hungary and Montenegro and also sells our brands in Bosnia-Herzegovina and Slovakia. Our brand portfolio includes Jelen, Staropramen, Ozujsko, Bergenbier, Kamenitza, and Branik. We also brew and distribute Stella Artois, Beck's, Lowenbrau and Spaten under license agreements with Anheuser-Busch InBev ("ABI") companies. See Note 3, "Acquisition of StarBev" for further discussion.

United Kingdom (U.K.)

The U.K. segment consists of our production, marketing and sales of our brands (the largest of which is Carling) principally in the U.K. and the Republic of Ireland; our consolidated joint venture relating to the production and distribution of the Grolsch brands in the U.K. and the Republic of Ireland; our consolidated joint venture to produce and distribute the Cobra brands in the U.K. and the Republic of Ireland; factored brand sales (beverage brands owned by other companies, but sold and delivered to retail by us), in the U.K.; and our joint venture arrangement, Tradeteam, with DHL for the distribution of products throughout the U.K. accounted for under the equity method. We also distribute the Modelo brands, including Corona, pursuant to a distribution agreement with Modelo. In addition, we contract manufacture for Heineken U.K. and Carlsberg U.K.

Molson Coors International (MCI)

The MCI segment is focused on growing our business and brand portfolios in key emerging and growth markets outside of the U.S., U.K., Canada and Central Europe, including Asia, continental Europe (outside of Central Europe), Mexico, Latin America and the Caribbean. This segment includes our Molson Coors Cobra India joint venture, our agreement in India with Cobra India. Beginning July 1, 2012, our Central Europe export and license business, added as part of the Acquisition, which includes the licensing arrangements with ABI to brew and distribute our products in Russia and Ukraine, export arrangements with Carlsberg in the U.K. and Sweden and with ABI in Germany, Canada and Italy, and other export arrangements in various other countries, is being reported in our MCI segment. The impact of our Central Europe export and license business for the period from Acquisition through the end of the second quarter 2012 was immaterial and therefore, have not been recast to be included in MCI results.

Corporate

Corporate is not a segment and includes interest and certain other general and administrative costs that are not allocated to any of the operating segments. The majority of these corporate costs relate to worldwide administrative functions, such as corporate affairs, legal, human resources, finance and accounting, treasury, insurance and risk management. Additionally, the results of our water resources and energy operations in the state of Colorado are included in Corporate. Corporate also includes certain royalty income and administrative costs related to the management of intellectual property.

Summarized Financial Information

No single customer accounted for more than 10% of our consolidated or segmented sales in 2012, 2011 or 2010. Net sales represent sales to third-party external customers. Inter-segment sales revenues other than sales to MillerCoors are insignificant and eliminated in consolidation.

The following tables represent consolidated net sales, consolidated interest expense, consolidated interest income, and reconciliations of amount shown as income (loss) from continuing operations before income taxes to income from continuing operations attributable to MCBC:



	Year ended December 29, 2012
	Canada		U.S.		Central Europe(1)		U.K.		MCI			Corporate			Eliminations(2)			Consolidated
	(In millions)
Net sales	$	2,036.8	$	—	$	481.2	$	1,266.3	$	147.0		$	1.2		$	(16.0	)	$	3,916.5
Interest expense	—		—		—		—		—			(196.3		)	—			(196.3		)
Interest income	—		—		—		5.7		—			5.6			—			11.3
Income (loss) from continuing operations before income taxes	$	423.0	$	510.9	$	97.4	$	38.8	$	(72.1	)	$	(405.9	)	$	—		$	592.1
Income tax benefit (expense)																		(154.5		)
Net income (loss) from continuing operations																		437.6
Less: Net (income) loss attributable to noncontrolling interests																		3.9
Net income (loss) from continuing operations attributable to MCBC																		$	441.5


(1)	Represents activity from the Acquisition date of June 15, 2012.


(2)	Represents inter-segment sales from the U.K. segment to the MCI segment.



	Year ended December 31, 2011
	Canada		U.S.		U.K.		MCI			Corporate			Eliminations(1)			Consolidated
	(In millions)
Net sales	$	2,067.3	$	—	$	1,333.5	$	122.6		$	1.3		$	(9.0	)	$	3,515.7
Interest expense	—		—		—		—			(118.7		)	—			(118.7		)
Interest income	—		—		6.3		—			4.4			—			10.7
Income (loss) from continuing operations before income taxes	$	474.9	$	457.9	$	99.3	$	(33.3	)	$	(224.6	)	$	—		$	774.2
Income tax benefit (expense)																(99.4		)
Net income (loss) from continuing operations																674.8
Less: Net (income) loss attributable to noncontrolling interests																(0.8		)
Net income (loss) from continuing operations attributable to MCBC																$	674.0


(1)	Represents inter-segment sales from the U.K. segment to the MCI segment.



	Year ended December 25, 2010
	Canada		U.S.		U.K.		MCI			Corporate			Consolidated
	(In millions)
Net sales	$	1,938.2	$	—	$	1,234.9	$	80.0		$	1.3		$	3,254.4
Interest expense	—		—		—		—			(110.2		)	(110.2		)
Interest income	—		—		6.7		—			4.1			10.8
Income (loss) from continuing operations before income taxes	$	454.0	$	456.1	$	95.3	$	(25.7	)	$	(170.7	)	$	809.0
Income tax benefit (expense)													(138.7		)
Net income (loss) from continuing operations													670.3
Less: Net (income) loss attributable to noncontrolling interests													(2.2		)
Net income (loss) from continuing operations attributable to MCBC													$	668.1

The following table presents total assets by segment:



	As of
	December 29, 2012		December 31, 2011
	(In millions)
Canada	$	6,547.1	$	6,541.6
U.S.	2,431.8		2,487.9
Central Europe	4,324.8		—
U.K.	2,417.6		2,293.4
MCI	92.0		151.7
Corporate	398.9		948.9
Discontinued operations	—		0.3
Consolidated total assets	$	16,212.2	$	12,423.8

The following table presents select cash flow information by segment:



	For the years ended
	December 29, 2012		December 31, 2011		December 25, 2010
			(In millions)
Depreciation and amortization(1):
Canada	$	128.2	$	125.0	$	122.3
Central Europe	58.9		—		—
United Kingdom	72.7		75.6		67.5
MCI	3.4		3.2		0.8
Corporate	9.5		13.3		11.7
Consolidated depreciation and amortization	$	272.7	$	217.1	$	202.3
Capital expenditures(2):
Canada	$	98.8	$	138.8	$	97.8
Central Europe	34.5		—		—
United Kingdom	76.2		80.3		70.0
MCI	5.8		12.4		4.2
Corporate	7.0		3.9		5.9
Consolidated capital expenditures	$	222.3	$	235.4	$	177.9


(1)	Depreciation and amortization amounts do not reflect amortization of bond discounts, fees, or other debt-related items.


(2)	Capital expenditures decreased in 2012 as the impact of including the results of our Central Europe operations was more than offset by the decrease due to cycling the 2011 Canada capital spending on the high-speed can line in our Montréal brewery.

The following table presents net sales by geography, based on the location of the customer:



	For the years ended
	December 29, 2012		December 31, 2011		December 25, 2010
	(In millions)
Net sales to unaffiliated customers:
Canada	$	1,930.7	$	1,987.4	$	1,894.9
United States and its territories	107.3		81.3		44.6
United Kingdom	1,218.4		1,313.9		1,217.7
Other foreign countries(1)	660.1		133.1		97.2
Consolidated net sales	$	3,916.5	$	3,515.7	$	3,254.4


(1)	Reflects the addition of our Central Europe segment, which operates in nine countries and for which no individual country has total net sales exceeding 10% of the total consolidated net sales.

The following table presents net properties by geographic location:



	As of
	December 29, 2012		December 31, 2011
	(In millions)
Net properties:
Canada	$	893.8	$	877.5
United States and its territories	33.1		35.7
United Kingdom	474.7		456.3
Other foreign countries(1)	594.3		60.6
Consolidated net properties	$	1,995.9	$	1,430.1


(1)	Reflects the addition of our Central Europe segment, which operates in nine countries and for which no individual country has total net properties exceeding 10% of the total consolidated net properties.