Goodwill and Intangible Assets

9 Months Ended

Sep. 24, 2011

Goodwill and Intangible Assets Disclosure [Abstract]

The following summarizes the change in goodwill for the first three quarters of 2011 (in millions):



Balance at December 25, 2010	$	1,489.1
Business acquisitions	19.3
Foreign currency translation	(15.0		)
Historical correction to adjust Properties, net	6.3
Balance at September 24, 2011	$	1,499.7

Goodwill was attributed to our segments as follows:



	As of
	September 24, 2011		December 25, 2010
	(In millions)
Canada	$	740.3	$	748.6
United Kingdom	741.6		731.4
MCI	17.8		9.1
Consolidated	$	1,499.7	$	1,489.1

The following table presents details of our intangible assets, other than goodwill, as of September 24, 2011:



	Useful life	Gross		Accumulated amortization			Net
	(Years)	(In millions)
Intangible assets subject to amortization:
Brands	3 - 40	$	315.0	$	(172.6	)	$	142.4
Distribution rights	2 - 23	339.7		(228.6		)	111.1
Patents and technology and distribution channels	3 - 10	34.7		(28.0		)	6.7
Land use rights and other	2 - 42	6.4		(0.7		)	5.7
Intangible assets not subject to amortization:
Brands	Indefinite	3,300.6		—			3,300.6
Distribution networks	Indefinite	984.0		—			984.0
Other	Indefinite	15.5		—			15.5
Total		$	4,995.9	$	(429.9	)	$	4,566.0

The following table presents details of our intangible assets, other than goodwill, as of December 25, 2010:



	Useful life	Gross		Accumulated amortization			Net
	(Years)	(In millions)
Intangible assets subject to amortization:
Brands	3 - 40	$	297.3	$	(159.6	)	$	137.7
Distribution rights	2 - 23	345.8		(221.6		)	124.2
Patents and technology and distribution channels	3 - 10	34.6		(25.5		)	9.1
Land use rights and other	2 - 42	6.2		(0.1		)	6.1
Intangible assets not subject to amortization:
Brands	Indefinite	3,359.2		—			3,359.2
Distribution networks	Indefinite	1,003.3		—			1,003.3
Other	Indefinite	15.5		—			15.5
Total		$	5,061.9	$	(406.8	)	$	4,655.1

The changes in the gross carrying amounts of intangibles from December 25, 2010 to September 24, 2011 are due to the impact of foreign exchange rates, as a significant amount of intangibles are denominated in foreign currencies, and the first quarter acquisition of Sharp's Brewery Ltd. in the U.K. (approximately $20.4 million).

Based on foreign exchange rates as of September 24, 2011, the following is our estimated amortization expense related to intangible assets for the next five years:



		Amount
		(In millions)
2011	- remaining	$	9.9
2012		$	34.6
2013		$	33.7
2014		$	33.6
2015		$	31.1

Amortization expense of intangible assets was $9.7 million and $30.0 million for the third quarter and first three quarters of 2011, respectively, and $10.9 million and $32.9 million for the third quarter and first three quarters of 2010, respectively.

We are required to perform goodwill and indefinite-lived intangible asset impairment tests on at least an annual basis and more frequently in certain circumstances. We performed the required annual impairment testing as of June 26, 2011, and determined that there were no impairments of goodwill or other indefinite-lived intangible assets.

Through our annual impairment testing, it was determined that the fair value of our China reporting unit was not significantly in excess of its carrying value (of which $9.5 million is goodwill as of September 24, 2011). In its first year of operation, the performance of the Molson Coors Si'hai Brewing venture (included in our China reporting unit) did not meet our expectations due to delays in executing our business plans. While we continue to work at resolving the delays, no guarantee can be made that our efforts will be successful. As a consequence, a future goodwill impairment charge related to the China reporting unit may be required.

Regarding definite-lived intangibles, we continuously monitor the performance of the underlying asset for potential triggering events suggesting an impairment review should be performed. No such triggering events were identified in the first three quarters of 2011.

- Definition

The entire disclosure for the aggregate amount of goodwill and a description of intangible assets, which may include (a) for amortizable intangible assets (also referred to as finite-lived intangible assets), the carrying amount, the amount of any significant residual value, and the weighted-average amortization period, (b) for intangible assets not subject to amortization (also referred to as indefinite-lived intangible assets), the carrying amount, and (c) the amount of research and development assets acquired and written off in the period, including the line item in the income statement in which the amounts written off are aggregated, if not readily apparent from the income statement. Also discloses (a) for amortizable intangibles assets in total and by major class, the gross carrying amount and accumulated amortization, the total amortization expense for the period, and the estimated aggregate amortization expense for each of the five succeeding fiscal years, (b) for intangible assets not subject to amortization the carrying amount in total and by major class, and (c) for goodwill, in total and for each reportable segment, the changes in the carrying amount of goodwill during the period (including the aggregate amount of goodwill acquired, the aggregate amount of impairment losses recognized, and the amount of goodwill included in the gain (loss) on disposal of a reporting unit). If any part of goodwill has not been allocated to a reportable segment, discloses the unallocated amount and the reasons for not allocating. For each impairment loss recognized related to an intangible asset (excluding goodwill), discloses: (a) a description of the impaired intangible asset and the facts and circumstances leading to the impairment, (b) the amount of the impairment loss and the method for determining fair value, (c) the caption in the income statement or the statement of activities in which the impairment loss is aggregated, and (d) the segment in which the impaired intangible asset is reported. For each goodwill impairment loss recognized, discloses: (a) a description of the facts and circumstances leading to the impairment, (b) the amount of the impairment loss and the method of determining the fair value of the associated reporting unit, and (c) if a recognized impairment loss is an estimate not finalized and the reasons why the estimate is not final. May also disclose the nature and amount of any significant adjustments made to a previous estimate of an impairment loss.

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