Basis of Presentation and Summary of Significant Accounting Policies

Unless otherwise noted in this report, any description of "we", "us" or "our" includes Molson Coors Brewing Company ("MCBC" or the "Company"), principally a holding company, and its operating subsidiaries: MillerCoors LLC ("MillerCoors") which is accounted for by us under the equity method of accounting, Molson Coors Brewing Company (UK) Limited ("MCBC-UK"), Molson Coors Canada ("MCC") and our other operating entities as further described in Note 1 of the Notes to the Audited Consolidated Financial Statements included in our Annual Report on Form 10-K for the year ended December 25, 2010 ("Annual Report").

Unless otherwise indicated, information in this report is presented in U.S. dollars ("USD" or "$").

The accompanying unaudited condensed consolidated interim financial statements reflect all adjustments which are necessary for a fair statement of the financial position, results of operations and cash flows for the periods presented in accordance with accounting principles generally accepted in the United States of America ("U.S. GAAP"). Such unaudited interim financial statements have been prepared in accordance with the instructions to Form 10-Q pursuant to the rules and regulations of the Securities and Exchange Commission ("SEC"). Certain information and footnote disclosures normally included in financial statements prepared in accordance with U.S. GAAP have been condensed or omitted pursuant to such rules and regulations.

These unaudited condensed consolidated interim financial statements should be read in conjunction with our Annual Report and have been prepared on a consistent basis with the accounting policies described in Note 1 of the Notes. The results of operations for the 13 and 39 week periods ended September 24, 2011, are not necessarily indicative of the results that may be achieved for the full fiscal year.

During the fourth quarter of 2010, we changed the classification of returnable bottles and pallets to non-current assets within Properties, net which were previously classified as current assets within Inventories—Packaging Materials, and have applied the classification change retrospectively in accordance with U.S. GAAP. This impacted the condensed consolidated statements of cash flows for the 39 weeks ended September 25, 2010, as discussed in Note 22 of the Notes to the Audited Consolidated Financial Statements in our Annual Report.

We follow a 52/53 week fiscal reporting calendar. The third fiscal quarter of 2011 and 2010 consisted of 13 weeks ended on September 24, 2011, and September 25, 2010, respectively. The first three quarters of 2011 and 2012 consisted of 39 weeks ended on September 24, 2011, and September 25, 2010, respectively. Fiscal year 2011 consists of 53 weeks ending on December 31, 2011, and fiscal year 2010 consisted of the 52 weeks ended December 25, 2010.

Unless otherwise indicated, third quarter refers to the 13 week periods ended September 24, 2011, and September 25, 2010, and first three quarters refers to the 39 week periods ended on September 24, 2011, and September 25, 2010.

MillerCoors follows a monthly reporting calendar. The third quarter and first three quarters of 2011 and 2010 consisted of three months and nine months ended September 30, 2011, and September 30, 2010, respectively.

Our significant accounting policies are presented in Note 1 of the Notes to the Audited Consolidated Financial Statements in our Annual Report and did not significantly change in the third quarter or first three quarters of 2011.

Consistent with the disclosure in the Annual Report, these significant accounting policies include our treatment of the allowance for credit losses on our MCBC-UK trade loan portfolio. This allowance is maintained to provide for loan losses deemed to be probable related to specifically identified loans and for losses in the loan portfolio that have been incurred at the balance sheet date. We establish our allowance through a provision for loan losses charged against earnings and recorded in marketing, general & administrative expenses. Loan balances that are written off are recorded against the allowance as a write-off. A rollforward of the allowance for the first three quarters ended September 24, 2011, is as follows (in millions):



Balance at December 25, 2010	$	9.1
Provision for loan loss	(0.8		)
Write-offs	(1.1		)
Foreign currency and other adjustments	0.1
Balance at September 24, 2011	$	7.3