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. Our reporting segments consist of the U.S., Canada, Europe and International. Corporate is not a segment and primarily includes interest and certain other general and administrative costs that are not allocated to any of the operating segments as well as the unrealized changes in fair value on our commodity swaps not designated in hedging relationships recorded within cost of goods sold, which are later reclassified when realized to the segment in which the underlying exposure resides. Additionally, only the service cost component of net periodic pension and OPEB cost are now reported within each operating segment, as discussed in Note 2, "New Accounting Pronouncements", and all other components are reported, retrospectively and prospectively, within the Corporate segment in accordance with how our chief operating decision maker evaluates the performance of our business.

No single customer accounted for more than 10% of our consolidated sales for the three and six months ended June 30, 2018, or June 30, 2017. Consolidated net sales represent sales to third-party external customers less excise taxes. Inter-segment transactions impacting net sales revenues and income (loss) before income taxes eliminate in consolidation and are primarily related to U.S. segment sales to the other segments.

The following tables present net sales, income (loss) before income taxes and total assets by segment:



	Three Months Ended						Six Months Ended
	June 30, 2018			June 30, 2017			June 30, 2018			June 30, 2017
	(In millions)
U.S.	$	2,072.5		$	2,138.9		$	3,720.3		$	3,888.8
Canada	397.4			407.6			681.2			698.7
Europe	586.1			524.7			960.4			906.3
International	67.9			65.1			125.4			126.9
Corporate	0.3			0.3			0.5			0.6
Inter-segment net sales eliminations	(39.0		)	(45.3		)	(71.1		)	(81.3		)
Consolidated net sales	$	3,085.2		$	3,091.3		$	5,416.7		$	5,540.0



	Three Months Ended						Six Months Ended
	June 30, 2018			June 30, 2017⁽¹⁾			June 30, 2018		June 30, 2017⁽¹⁾
	(In millions)
U.S.	$	445.5		$	486.5		$	707.2	$	803.1
Canada⁽²⁾	61.3			69.7			70.4		90.6
Europe⁽³⁾	86.8			69.9			56.9		96.9
International	1.3			(7.7		)	5.0		(6.2		)
Corporate⁽⁴⁾	(71.9		)	(158.2		)	40.9		(243.3		)
Consolidated income (loss) before income taxes	$	523.0		$	460.2		$	880.4	$	741.1


(1)	Segment results for the three and six months ended June 30, 2017, have been adjusted to reflect the adoption of the new accounting pronouncement for pension and other postretirement benefit costs as well as the reclassification of all non-service cost components of pension and other postretirement costs to Corporate. See Note 2, "New Accounting Pronouncements" for further details.


(2)	During the first quarter of 2017, we received payment and recorded a gain of CAD 10.6 million, or $8.1 million, resulting from a purchase price adjustment related to the historical sale of Molson Inc.’s ownership interest in the Montreal Canadiens, which is considered an affiliate of MCBC.

(3)

During the three months ended March 31, 2017, we recorded a provision for an estimate of uncollectible receivables of approximately $11 million related to Agrokor, a large customer in Croatia. We have subsequently reduced this exposure and as of June 30, 2018, our estimated provision of uncollectible receivables from Agrokor totals approximately $4 million. The settlement plan related to this matter was announced in July 2018. We are currently evaluating the implications of the settlement plan, and do not expect it to have a significant impact on our financial statements upon finalization. Separately, during the first quarter of 2017, we released an indirect tax loss contingency, which was initially recorded in the fourth quarter of 2016, for a benefit of approximately $50 million. See Note 14, "Commitments and Contingencies" for details.

(4)

During the three months ended March 31, 2018, we recorded a gain of $328.0 million related to the Adjustment Amount as defined and further discussed in Note 6, "Special Items". Additionally, related to the unrealized mark-to-market valuation on our commodity hedge positions, we recorded an unrealized gain of $45.1 million and an unrealized loss of $39.6 million during the three and six months ended June 30, 2018, respectively, compared to an unrealized loss of $23.4 million and an unrealized gain of $39.7 million during the three and six months ended June 30, 2017, respectively.

Income (loss) before income taxes includes the impact of special items. Refer to Note 6, "Special Items" for further discussion.



	As of
	June 30, 2018		December 31, 2017
	(In millions)
U.S.	$	19,318.7	$	19,353.6
Canada	4,731.5		4,835.7
Europe	5,619.5		5,522.0
International	279.4		294.8
Corporate	611.8		240.8
Consolidated total assets	$	30,560.9	$	30,246.9