Derivative Instruments and Hedging Activities (Tables)

12 Months Ended

Dec. 29, 2012

Derivative Instruments and Hedging Activities Disclosure [Abstract]

Schedule of derivative assets and liabilities measured at fair value

The table below summarizes our derivative assets and liabilities that were measured at fair value as of December 29, 2012 and December 31, 2011. See Note 1 "Basis of Presentation and Summary of Significant Accounting Policies" for further discussion related to measuring fair value derivative instruments.

				Fair Value Measurements at December 29, 2012 Using
	Total at December 29, 2012			Quoted prices in active markets (Level 1)		Significant Other Observable Inputs (Level 2)			Significant Unobservable Inputs (Level 3)
	(In millions)
Cross currency swaps	$	(220.4	)	$	—	$	(220.4	)	$	—
Foreign currency forwards	(1.7		)	—		(1.7		)	—
Commodity swaps	(2.5		)	—		(2.5		)	—
Equity conversion feature of debt	(7.9		)	—		—			(7.9		)
Total	$	(232.5	)	$	—	$	(224.6	)	$	(7.9	)

				Fair Value Measurements at December 31, 2011 Using
	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	)	$	—

Summarizes derivative valuation activity using significant unobservable inputs (Level 3)

The table below summarizes derivative valuation activity using significant unobservable inputs (Level 3) (In millions):

	Rollforward of Level 3 Inputs
Balance at December 25, 2010	$	2.9
Total gains or losses (realized/unrealized)
Included in earnings (or change in net assets)	1.5
Included in AOCI	—
Purchases, issuances and settlements	(4.4		)
Transfers In/Out of Level 3	—
Balance at December 31, 2011	$	—
Total gains or losses (realized/unrealized)
Included in earnings (or change in net assets)	7.3
Included in AOCI	—
Issuances(1)	(15.2		)
Settlements	—
Transfers In/Out of Level 3	—
Balance at December 29, 2012	$	(7.9	)
Unrealized gains or losses for Level 3 assets/liabilities outstanding at December 29, 2012(1)	$	7.3

(1)    At issuance, we recorded a liability of $15.2 million related to the Convertible Note's embedded conversion feature.

As of December 29, 2012, the conversion feature related to the Convertible Note is classified as a Level 3 derivative due to valuations based upon significant unobservable inputs. As of December 31, 2011, we did not hold derivatives classified as Level 3, as we settled all of our option contracts that were classified as Level 3 at December 25, 2010, during the first quarter of 2011. We did not have any significant transfers between Level 1 and Level 2 during 2012 or 2011. New derivative contracts transacted during fiscal year 2011 are all included in Level 2.

Quantitative information regarding significant unobservable inputs used for recurring Level 3 fair value measurements of financial instruments carried at fair value, were as follows (in millions):

	Balance at December 29, 2012			Valuation Technique	Significant Unobservable Input(s)/Sensitivity of the Fair Value to Changes in the Unobservable Inputs	Range
Equity conversion feature of debt	$	(7.9	)	Option model	Implied volatility(1)	21-25%

(1) Significant increase (decrease) in the unobservable input in isolation would result in a significantly higher (lower) fair value measurement.

Fair Value of Derivative Instruments in the Condensed Consolidated Balance Sheets

Fair Value of Derivative Instruments in the Consolidated Balance Sheets (in millions, except for certain commodity swaps with notional amounts measured in Metric Tonnes, as noted)

	As of December 29, 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 non-current assets	—		Non-current derivative hedging instruments	(220.4		)
Foreign currency forwards	USD	507.3	Other current assets	2.0		Current derivative hedging instruments	(3.4		)
			Other non-current assets	1.4		Non-current derivative hedging instruments	(1.7		)
Commodity swaps	kWh	486.1	Other current assets	—		Current derivative hedging instruments	(1.0		)
			Other non-current assets	0.2		Non-current derivative hedging instruments	(0.1		)
Total derivatives designated as hedging instruments				$	3.6		$	(226.6	)
Derivatives not designated as hedging instruments:
Equity conversion feature of debt	EUR	500.0				Current portion of long-term debt and short-term borrowings	$	(7.9	)
Aluminum swaps	Metric tonnes (actual)	2,850	Other current assets	—		Current derivative hedging instruments	(1.4		)
Diesel swaps	Metric tonnes (actual)	5,493	Other current assets	—		Current derivative hedging instruments	(0.2		)
Total derivatives not designated as hedging instruments				$	—		$	(9.5	)
Non-derivative financial instruments in net investment hedge relationships:
€120 million term loan due 2016	EUR	93.7				Long-term debt	$	(123.9	)
Total non-derivative financial instruments in net investment hedge relationships							$	(123.9	)

	As of 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 non-current assets	—		Non-current derivative hedging instruments	(208.7		)
Foreign currency forwards	USD	464.6	Other current assets	—		Current derivative hedging instruments	(1.3		)
			Other non-current assets	3.4		Non-current derivative hedging instruments	—
Commodity swaps	kWh	611.1	Other current assets	—		Current derivative hedging instruments	(1.8		)
			Other non-current assets	—		Non-current 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	Other current assets	$	—	Current derivative hedging instruments	$	(1.3	)
			Other non-current assets	—		Non-current derivative hedging instruments	(3.3		)
Diesel swaps	Metric tonnes (actual)	9,668	Other current assets	0.1		Current derivative hedging instruments	—
Total derivatives not designated as hedging instruments				$	0.1		$	(4.6	)

MCBC allocates the current and non-current portion of each contract to the corresponding derivative account above.

The Effect of Derivative Instruments on the Condensed Consolidated Statements of Operations

During the period, we recorded no significant ineffectiveness related to these cash flow and net investment hedges.

For the year ended December 31, 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)	$	0.2	Other income (expense), net	$	3.0		Other income (expense), net	$	—
Forward starting interest rate swaps	—		Interest expense, net	(1.6		)	Interest expense, net	—
Foreign currency forwards	0.4		Other income (expense), net	(6.7		)	Other income (expense), net	—
			Cost of goods sold	(9.6		)	Cost of goods sold	—
Commodity swaps	0.1		Cost of goods sold	—			Cost of goods sold	—
Total	$	0.7		$	(14.9	)		$	—

(1) As cash flow hedges, the foreign exchange gain (loss) component of these cross currency swaps was offset by the corresponding gain (loss) on the hedged forecasted transactions in other income (expense), net and interest expense, net. In the fourth quarter of 2011, the cross currency swaps were dedesignated as cash flow hedges and redesignated as net investment hedges.

For the year ended December 31, 2011
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 swaps	$	(0.3	)	Other income (expense), net	$	—	Other income (expense), net	$	—
Total	$	(0.3	)		$	—		$	—

Note: Amounts recognized in AOCI related to cash flow and net investment hedges are presented gross of taxes

During the period, we recorded no significant ineffectiveness related to these cash flow hedges.

For the year ended December 25, 2010
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)	$	(9.9	)	Other income (expense), net	$	(39.9	)	Other income (expense), net	$	—
				Interest expense	(12.1		)	Interest expense	—
Forward starting interest rate swaps	13.9			Interest expense	(0.2		)	Interest expense	—
Foreign currency forwards	6.3			Other income (expense), net	(5.0		)	Other income (expense), net	—
				Cost of goods sold	(1.7		)	Cost of goods sold	—
				Marketing, general and administrative expenses	0.1			Marketing, general and administrative expenses	—
Commodity swaps	1.2			Cost of goods sold	(1.7		)	Cost of goods sold	—
Total	$	11.5			$	(60.5	)		$	—

Note: Amounts recognized in AOCI are presented gross of taxes

(1) The foreign exchange gain (loss) component of these cross currency swaps is offset by the corresponding gain (loss) on the hedged forecasted transactions in other income (expense), net and interest expense, net.

The Effect of Derivative Instruments on the Consolidated Statements of Operations(in millions)

For the year ended December 29, 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	$	(1.6	)	Interest expense, net	$	—
Foreign currency forwards	(10.3		)	Other income (expense), net	(2.3		)	Other income (expense), net	—
				Cost of goods sold	(4.9		)	Cost of goods sold	—
Commodity swaps	0.1			Cost of goods sold	(1.4		)	Cost of goods sold	—
Total	$	(10.2	)		$	(10.2	)		$	—

For the year ended December 29, 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 swaps	$	(27.5	)	Other income (expense), net	$	—	Other income (expense), net	$	—
€120 million term loan due 2016	(8.1		)	Other income (expense), net	—		Other income (expense), net	—
Total	$	(35.6	)		$	—		$	—

Note: Amounts recognized in AOCI related to cash flow and net investment hedges are presented gross of taxes

Other Derivatives

Other Derivatives(in millions)

For the year ended December 29, 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	$	8.0
	Other income (expense), net	(0.7		)
Commodity swaps	Cost of goods sold	(0.5		)
Total		$	6.8

For the year ended December 31, 2011
Derivatives not in hedging relationship	Location of gain (loss) recognized in income on derivative	Amount of gain (loss) recognized in income on derivative
Commodity swaps	Cost of goods sold	$	(4.7	)
Cash settled total return swap	Other income (expense), net	(0.6		)
Option contracts	Other income (expense), net	1.5
Foreign currency forwards	Other income (expense), net	(0.1		)
Total		$	(3.9	)

For the year ended December 25, 2010
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 swap	Other income (expense), net	$	28.3
Option contracts	Other income (expense), net	21.7
Foreign currency forwards	Other income (expense), net	(6.0		)
Total		$	44.0