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 brand family, Coors Light, Coors Banquet, 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 November 2013, Anheuser-Busch InBev ("ABI") and MCBC entered into an agreement providing for the accelerated termination of the MMI joint venture. See Note 5, "Investments" for further discussion. 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 brands 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.

Europe

The Europe segment consists of our production, marketing and sales of our brands, including Carling, Ozujsko, Jelen, Staropramen, Coors Light, Kamenitza, Niksicko, Bergenbier, Branik, Worthington's, Sharp's Doom Bar, Borsodi, Ostravar, Noroc, Astika, Apatinsko and Blue Moon, as well as a number of smaller regional ale brands in the U.K., Ireland and Central Europe. The European business has licensing agreements with various other brewers through which it also brews or distributes the Stella Artois, Hoegaarden, Leffe, Beck's, Lowenbrau, Spaten, Löwenweisse and Belle-Vue Kriek brands in certain Central European countries; our consolidated joint venture arrangements to produce, import and distribute the Grolsch and Cobra brands in the U.K. and the Republic of Ireland; and factored brand sales (beverage brands owned by other companies, but sold and delivered to retail by MCBC) in the U.K. Additionally, our previous joint venture arrangement with DHL ("Tradeteam") provided for the distribution of products throughout the U.K. and was accounted for under the equity method of accounting. In December 2013, we terminated our existing distribution agreements with Tradeteam and concurrently entered into new agreements for the continued distribution of our products in the U.K. through 2023. Subsequent to the execution of the new distribution agreements, we executed a sale and purchase agreement for the termination of the joint venture and sale of our interest in Tradeteam to DHL. See Note 5, "Investments" for further discussion. We also distribute the Modelo brands, including Corona, in the U.K. pursuant to a distribution agreement with Modelo and we contract manufacture for Heineken U.K. and Carlsberg U.K. In conjunction with negotiations in November 2013 with ABI around our Modelo distribution agreements, we agreed with ABI to continue to represent the Modelo brands in the U.K. through the end of 2014. See Note 5, "Investments" for further discussion. Additionally, in December 2013, we entered into an agreement with Heineken to early terminate the contract brewing arrangement, whereby we produce and package Heineken products. As a result of the termination, Heineken has agreed to pay us an aggregate early termination payment of GBP 13 million during and through the end of the transition period, concluding on April 30, 2015.

Molson Coors International (MCI)

The objective of MCI is to grow and expand our business and brand portfolio in markets, including emerging markets, outside the U.S., Canada, U.K. and Central Europe, comprising our standalone businesses in India (consisting of the Molson Coors Cobra India joint venture), Japan and China; our export business, which is expanding the reach of our international brands, in Latin America, the Caribbean, Western Europe, and Australia; and our license business, which builds long term licensing partnerships with leading global brewers to market and grow our international brands in markets which typically have a greater barrier to entry, in Ukraine, Russia, Mexico and Spain. In addition to Staropramen, Coors Light, Carling, Cobra, Blue Moon and Corona, brands unique to these international markets include Zima, Iceberg 9000, King Cobra, Coors, Coors Gold, and Coors Extra. Beginning July 1, 2012, our Central Europe export and license business is being reported in our MCI segment.

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, tax, internal audit, 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 2013, 2012 or 2011. Net sales represent sales to third-party external customers. Inter-segment sales and income (loss) from continuing operations before income taxes, 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 (loss) from continuing operations attributable to MCBC:



	Year ended December 31, 2013
	Canada		U.S.		Europe(1)		MCI			Corporate			Eliminations(2)			Consolidated
	(In millions)
Net sales	$	1,943.8	$	—	$	2,128.3	$	137.6		$	1.2		$	(4.8	)	$	4,206.1
Interest expense	—		—		—		—			(183.8		)	—			(183.8		)
Interest income	—		—		4.9		—			8.8			—			13.7
Income (loss) from continuing operations before income taxes	$	363.3	$	539.0	$	34.3	$	(11.8	)	$	(270.3	)	$	—		$	654.5
Income tax benefit (expense)																(84.0		)
Net income (loss) from continuing operations																570.5
Less: Net (income) loss attributable to noncontrolling interests																(5.2		)
Net income (loss) from continuing operations attributable to MCBC																$	565.3


(1)	Income from continuing operations for the fiscal year ended December 31, 2013 includes a $150.9 million non-cash impairment charge related to two indefinite-lived brand intangibles assumed in the Acquisition. See Note 12, "Goodwill and Intangible Assets" for further discussion.


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



	Year ended December 29, 2012
	Canada		U.S.		Europe(1)		MCI			Corporate			Eliminations(2)			Consolidated
	(In millions)
Net sales	$	2,036.8	$	—	$	1,747.5	$	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	$	136.2	$	(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)	Includes results from our Central Europe operations from the Acquisition date of June 15, 2012.


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



	Year ended December 31, 2011
	Canada		U.S.		Europe(1)		MCI			Corporate			Eliminations(2)		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)	Europe amounts reflect results from our U.K. operations only, as our Central Europe business was acquired in 2012.


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

The following table presents total assets by segment:



	As of
	December 31, 2013		December 29, 2012
	(In millions)
Canada	$	6,103.2	$	6,547.1
U.S.	2,506.5		2,431.8
Europe	6,547.7		6,742.4
MCI	83.3		92.0
Corporate	339.4		398.9
Consolidated total assets	$	15,580.1	$	16,212.2

The following table presents select cash flow information by segment:



	For the years ended
	December 31, 2013		December 29, 2012		December 31, 2011
			(In millions)
Depreciation and amortization(1):
Canada	$	122.8	$	128.2	$	125.0
Europe	185.0		131.6		75.6
MCI	2.9		3.4		3.2
Corporate	9.8		9.5		13.3
Consolidated depreciation and amortization	$	320.5	$	272.7	$	217.1
Capital expenditures(2):
Canada	$	75.7	$	98.8	$	138.8
Europe	204.6		110.7		80.3
MCI	1.6		5.8		12.4
Corporate	12.0		7.0		3.9
Consolidated capital expenditures	$	293.9	$	222.3	$	235.4


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


(2)	Capital expenditures increased in 2013 due to including the results of our Central Europe operations for a full year. 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 31, 2013		December 29, 2012		December 31, 2011
	(In millions)
Net sales to unaffiliated customers:
Canada	$	1,839.8	$	1,930.7	$	1,987.4
United States and its territories	105.2		107.3		81.3
United Kingdom	1,261.6		1,218.4		1,313.9
Other foreign countries(1)	999.5		660.1		133.1
Consolidated net sales	$	4,206.1	$	3,916.5	$	3,515.7


(1)	Reflects net sales from the individual countries within our Central European operations (included in our Europe segment), as well as our MCI segment, 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 31, 2013		December 29, 2012
	(In millions)
Net properties:
Canada	$	814.8	$	893.8
United States and its territories	38.6		33.1
United Kingdom	503.4		474.7
Other foreign countries(1)	613.3		594.3
Consolidated net properties	$	1,970.1	$	1,995.9


(1)	Reflects net properties within the individual countries included in our Central European operations (included in our Europe segment), as well as our MCI segment, for which no individual country has total net properties exceeding 10% of the total consolidated net properties.