Acquisition and Investments (Tables)

6 Months Ended

Jun. 30, 2017

Equity Method Investments and Joint Ventures [Abstract]

Business Acquisition, Pro Forma Information [Table Text Block]

The unaudited pro forma financial information below does not reflect the realization of any expected ongoing synergies relating to the integration of MillerCoors. Further, the unaudited pro forma financial information should not be considered indicative of the results that would have occurred if the Acquisition and related financing had been consummated on January 1, 2016, nor are they indicative of future results.



	Three Months Ended		Six Months Ended
	June 30, 2016
	(in millions)
Net sales	$	3,109.2	$	5,570.6
Net income from continuing operations attributable to MCBC	$	309.3	$	566.7
Net income attributable to MCBC	$	307.5	$	564.4
Net income from continuing operations attributable to MCBC per share:
Basic	$	1.44	$	2.64
Diluted	$	1.43	$	2.62

For the three and six months ended June 30, 2016, the following non-recurring charges (benefits) directly attributable to the Acquisition were made as adjustments to our pro forma results to remove the impact from our historical operating results within the below noted line items.



	Three Months Ended			Six Months Ended
	June 30, 2016
	(In millions)
Non-recurring charges (benefits)							Location
Other transaction-related costs	$	19.6		$	34.5		Marketing, general and administrative expenses
Bridge loan - amortization of financing costs	$	20.2		$	38.6		Other income (expense)
Foreign currency forwards and transactional foreign currency loss	$	11.6		$	11.6		Other income (expense)
Term loan - commitment fee	$	1.3		$	2.5		Interest expense, net
Swaption - unrealized loss	$	15.3		$	36.4		Interest expense, net
Interest income earned on money market and fixed rate deposit accounts	$	(3.9	)	$	(6.4	)	Interest income, net

Summarized financial information of MillerCoors

Results of Operations



	Three Months Ended			Six Months Ended
	June 30, 2016
	(in millions)
Net sales	$	2,126.7		$	3,942.8
Cost of goods sold	(1,174.5		)	(2,207.5		)
Gross profit	$	952.2		$	1,735.3
Operating income⁽¹⁾	$	435.7		$	772.2
Net income attributable to MillerCoors⁽¹⁾	$	429.5		$	764.8


(1)	Results include special charges related to the closure of the Eden, North Carolina, brewery of $39.4 million and $76.3 million for the three and six months ended June 30, 2016, respectively, including $33.0 million and $68.9 million of accelerated depreciation in excess of normal depreciation associated with the brewery and $6.4 million and $7.4 million of other charges, respectively.

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

The following represents our proportionate share in net income attributable to MillerCoors reported under the equity method of accounting prior to the Acquisition:



	Three Months Ended			Six Months Ended
	June 30, 2016
	(in millions, except percentages)
Net income attributable to MillerCoors	$	429.5		$	764.8
MCBC's economic interest	42		%	42		%
MCBC's proportionate share of MillerCoors' net income	180.4			321.2
Amortization of the difference between MCBC's contributed cost basis and proportionate share of the underlying equity in net assets of MillerCoors	1.1			2.2
Share-based compensation adjustment⁽¹⁾	(0.7		)	(0.2		)
U.S. import tax benefit⁽²⁾	11.1			11.1
Equity income in MillerCoors	$	191.9		$	334.3


(1)	The net adjustment is to eliminate all share-based compensation impacts related to pre-existing SABMiller equity awards held by former Miller Brewing Company employees employed by MillerCoors, as well as to add back all share-based compensation impacts related to pre-existing MCBC equity awards held by former MCBC employees who transferred to MillerCoors.

Summary of transactions with MillerCoors

The following table summarizes our transactions with MillerCoors prior to the Acquisition when it was accounted for under the equity method of accounting:



	Three Months Ended		Six Months Ended
	June 30, 2016
	(In millions)
Beer sales to MillerCoors	$	2.6	$	4.6
Beer purchases from MillerCoors	$	12.2	$	22.1
Service agreement costs and other charges to MillerCoors	$	0.6	$	1.3
Service agreement costs and other charges from MillerCoors	$	0.1	$	0.2

Schedules of Consolidated Investments

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



	As of
	June 30, 2017				December 31, 2016
	Total Assets		Total Liabilities		Total Assets		Total Liabilities
	(In millions)
Grolsch	$	4.7	$	0.3	$	4.4	$	0.5
Cobra U.K.	$	17.5	$	0.7	$	14.2	$	1.1
RMMC	$	77.3	$	3.9	$	70.2	$	3.5
RMBC	$	54.7	$	2.0	$	53.1	$	2.5

- Definition

Tabular disclosure of the significant judgments and assumptions made in determining whether a variable interest (as defined) held by the entity requires the variable interest entity (VIE) (as defined) to be consolidated and (or) disclose information about its involvement with the VIE, individually or in aggregate (as applicable); the nature of restrictions, if any, on the consolidated VIE's assets and on the settlement of its liabilities reported by an entity in its statement of financial position, including the carrying amounts of such assets and liabilities; the nature of, and changes in, the risks associated with involvement in the VIE; how involvement with the VIE affects the entity's financial position, financial performance, and cash flows; the lack of recourse if creditors (or beneficial interest holders) of the consolidated VIE have no recourse to the general credit of the primary beneficiary (if applicable); the terms of arrangements, giving consideration to both explicit arrangements and implicit variable interests, if any, that could require the entity to provide financial support to the VIE, including events or circumstances that could expose the entity to a loss; the methodology used by the entity for determining whether or not it is the primary beneficiary of the variable interest entity; the significant factors considered and judgments made in determining that the power to direct the activities of a VIE that most significantly impact the VIE's economic performance are shared (as defined); the carrying amounts and classification of assets and liabilities of the VIE included in the statement of financial position; the entity's maximum exposure to loss, if any, as a result of its involvement with the VIE, including how the maximum exposure is determined and significant sources of the entity's exposure to the VIE; a comparison of the carrying amounts of the assets and liabilities and the entity's maximum exposure to loss; information about any liquidity arrangements, guarantees, and (or) other commitments by third parties that may affect the fair value or risk of the entity's variable interest in the VIE; whether or not the entity has provided financial support or other support (explicitly or implicitly) to the VIE that it was not previously contractually required to provide or whether the entity intends to provide that support, including the type and amount of the support and the primary reasons for providing the support; and supplemental information the entity determines necessary to provide.

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