Investments (Tables)

12 Months Ended

Dec. 29, 2012

Equity Method Investments and Joint Ventures [Abstract]

MCBC's proportional share in MillerCoors of net income reported under the equity method

Summarized financial information for MillerCoors is as follows (in millions):

Condensed Balance Sheet

	As of
	December 31, 2012		December 31, 2011
Current assets	$	841.4	$	810.9
Non-current assets	8,949.9		8,861.7
Total assets	$	9,791.3	$	9,672.6
Current liabilities	$	958.5	$	922.7
Non-current liabilities	1,537.5		1,471.3
Total liabilities	2,496.0		2,394.0
Noncontrolling interests	28.4		36.7
Owners' equity	7,266.9		7,241.9
Total liabilities and equity	$	9,791.3	$	9,672.6

Results of Operations

	For the years ended
	December 31, 2012			December 31, 2011			December 31, 2010
Net sales	$	7,761.1		$	7,550.2		$	7,570.6
Cost of goods sold	(4,689.7		)	(4,647.9		)	(4,686.3		)
Gross profit	$	3,071.4		$	2,902.3		$	2,884.3
Operating income(1)	$	1,211.1		$	1,020.3		$	1,078.9
Net income attributable to MillerCoors(1)	$	1,190.9		$	1,003.8		$	1,057.0

(1) Fiscal year 2012 includes special charges of $31.8 million primarily due to the write-down of assets related to discontinuing the production of the Home Draft package in the U.S. and the write-down of information systems assets related to the business transformation project. Fiscal year 2011 includes special charges of $60.0 million for a write-down in the value of the Sparks brand and a $50.9 million charge resulting from the planned assumption of the Milwaukee Brewery Worker's Pension Plan, an under-funded multi-employer pension plan. Fiscal year 2010 includes special charges of $30.3 million primarily driven by pension curtailment losses and integration costs, including severance and relocation costs resulting from the sales office reorganization.

The following represents our proportional share in MillerCoors' net income, reported under the equity method (in millions):

	For the years ended
	December 29, 2012			December 31, 2011			December 25, 2010
Net income attributable to MillerCoors	$	1,190.9		$	1,003.8		$	1,057.0
MCBC economic interest	42		%	42		%	42		%
MCBC proportionate share of MillerCoors net income	500.2			421.6			443.9
Amortization of the difference between MCBC contributed cost basis and proportional share of the underlying equity in net assets of MillerCoors(1)	4.9			35.4			6.9
Share-based compensation adjustment(2)	5.8			0.9			5.3
Equity income in MillerCoors	$	510.9		$	457.9		$	456.1

(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 $576 million as of December 29, 2012. This basis difference, with the exception of certain non-amortizing items (goodwill, land, etc.) is being amortized as additional equity income over the remaining useful lives of the contributed long-lived amortizing assets. During the fourth quarter of 2012, MillerCoors acquired the remaining noncontrolling interest in a consolidated subsidiary for an amount in excess of its carrying value, resulting in a decrease to owners' equity of $18.5 million. This created an additional basis difference of approximately $7.8 million as the transaction did not have a corresponding impact to our investment in the fourth quarter of 2012. This amount is included in the approximate $576 million difference noted above and will be amortized as part of the basis difference generated upon formation of the joint venture. Additionally, during the fourth quarter of 2012, we also reclassified approximately $95 million from the investment in MillerCoors to AOCI primarily reflecting our proportional share of MillerCoors AOCI at formation, which was previously not recognized in MCBC's ownership share of MillerCoors' OCI. We made this reclassification as we believe the new presentation provides improved transparency of our share of MillerCoors AOCI. This reclassification was not made to prior periods as the impact is immaterial. See Note 16, “Accumulated Other Comprehensive Income (Loss)” for inclusion of this reclassification under the caption "Equity Method Investments" for the year-ended December 29, 2012. During the third quarter of 2011, MillerCoors recognized an impairment charge of $60.0 million associated with its Sparks brand intangible asset. Our portion, $25.2 million, or 42% of the charge, is offset by an adjustment to our basis amortization above. This adjustment represents accelerated amortization attributable to our proportionate share of the underlying basis of the asset class in which Sparks was contributed. The total current basis difference including the AOCI reclassification described above less the $35.0 million recorded in 2008 and 2009 related to differences resulting from accounting policy elections, as well as a distribution timing difference of $15.5 million received in fiscal 2013 for MCBC must be subtracted from our 42% of MillerCoors' owners' equity to reconcile 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 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 equity awards, which represent the amounts recorded in 2012.

Summary of Transactions with MillerCoors

The following table summarizes our transactions with MillerCoors (in millions):

	For the years ended
	December 29, 2012		December 31, 2011		December 25, 2010
Beer sales to MillerCoors	$	18.9	$	28.2	$	35.1
Beer purchases from MillerCoors	$	13.1	$	11.5	$	9.3
Service agreement costs and other charges to MillerCoors	$	3.7	$	6.0	$	4.1
Service agreement costs and other charges from MillerCoors	$	1.2	$	1.3	$	1.2

Financial Commitments Under The Distribution Contract With Tradeteam

Our approximate financial commitments under the distribution contract with Tradeteam based on foreign exchange rates as of December 29, 2012, are as follows:

Fiscal year	Amount
	(In millions)
2013	$	132.6
2014	132.3
2015	112.0
2016	95.5
2017	97.4
Thereafter	73.1
Total	$	642.9

Assets and Results of Operation of Consolidated Investments

The following summarizes the assets and liabilities of our consolidated VIEs (including noncontrolling interests).

	As of
	December 29, 2012				December 31, 2011
	Total Assets		Total Liabilities		Total Assets		Total Liabilities
	(In millions)
Grolsch	$	10.0	$	5.6	$	20.4	$	12.9
Cobra U.K.	$	33.2	$	3.3	$	31.6	$	3.0