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 VIEs" below are those for which we have concluded that we are the primary beneficiary and accordingly, consolidate these entities. None of our consolidated VIEs held debt as of March 30, 2013, or December 29, 2012. We have not provided any financial support to any of our VIEs during the quarter that we were not previously contractually obligated to provide. Amounts due to and due from our equity method investments are recorded as affiliate accounts payable and affiliate accounts receivable.

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. As of March 30, 2013, and December 29, 2012, our consolidated VIEs are Cobra Beer Partnership, Ltd. ("Cobra U.K.") and Grolsch and our unconsolidated VIEs are Brewers' Retail Inc. ("BRI"), Brewers' Distributor Ltd. ("BDL") and Modelo Molson Imports, L.P. ("MMI"). Tradeteam is an equity method investment but is not considered a VIE.

Equity Investments

Investment in MillerCoors

Summarized financial information for MillerCoors is as follows:

Condensed Balance Sheets



	As of
	March 31, 2013		December 31, 2012
	(In millions)
Current assets	$	1,026.9	$	841.4
Non-current assets	8,931.4		8,949.9
Total assets	$	9,958.3	$	9,791.3
Current liabilities	$	870.3	$	958.5
Non-current liabilities	1,522.5		1,537.5
Total liabilities	2,392.8		2,496.0
Noncontrolling interests	29.7		28.4
Owners' equity	7,535.8		7,266.9
Total liabilities and equity	$	9,958.3	$	9,791.3

The following represents our proportional share in MillerCoors' equity:



	As of
	March 31, 2013			December 31, 2012
	(In millions, except percentages)
MillerCoors owners' equity	$	7,535.8		$	7,266.9
MCBC economic interest	42		%	42		%
MCBC proportionate share in MillerCoors' equity	3,165.0			3,052.1
Difference between MCBC contributed cost basis and proportional share of the underlying equity in net assets of MillerCoors(1)	(669.6		)	(670.8		)
Accounting policy elections	35.0			35.0
Timing differences of cash contributions and distributions as a result of different fiscal periods	—			15.5
Investment in MillerCoors	$	2,530.4		$	2,431.8

(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")). 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.

Results of Operations



	Three Months Ended
	March 31, 2013			March 31, 2012
	(In millions)
Net sales	$	1,788.3		$	1,759.8
Cost of goods sold	(1,088.7		)	(1,070.0		)
Gross profit	$	699.6		$	689.8
Operating income	$	274.5		$	279.0
Net income attributable to MillerCoors	$	271.9		$	275.3

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



	Thirteen Weeks Ended
	March 30, 2013			March 31, 2012
	(In millions, except percentages)
Net income attributable to MillerCoors	$	271.9		$	275.3
MCBC economic interest	42		%	42		%
MCBC proportionate share of MillerCoors net income	114.2			115.6
Amortization of the difference between MCBC contributed cost basis and proportional share of the underlying equity in net assets of MillerCoors	1.2			0.4
Share-based compensation adjustment(1)	2.0			2.9
Equity income in MillerCoors	$	117.4		$	118.9


(1)	The net adjustment is to eliminate all share-based compensation impacts related to pre-existing SABMiller plc equity awards held by former Miller employees now employed by MillerCoors.

The following table summarizes our transactions with MillerCoors:



	Thirteen Weeks Ended
	March 30, 2013		March 31, 2012
	(In millions)
Beer sales to MillerCoors	$	4.4	$	4.9
Beer purchases from MillerCoors	$	3.1	$	2.3
Service agreement costs and other charges to MillerCoors	$	0.6	$	1.1
Service agreement costs and other charges from MillerCoors	$	0.2	$	0.2

As of March 30, 2013, and December 29, 2012, we had $0.4 million and $0.8 million of net payables due to MillerCoors, respectively.

Consolidated VIEs

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



	As of
	March 30, 2013				December 29, 2012
	Total Assets		Total Liabilities		Total Assets		Total Liabilities
	(In millions)
Grolsch	$	6.4	$	2.0	$	10.0	$	5.6
Cobra U.K.	$	32.5	$	2.4	$	33.2	$	3.3