Share-Based Payments

3 Months Ended

Mar. 31, 2012

Disclosure of Compensation Related Costs, Share-based Payments [Abstract]

Share-Based Payments

Share-Based Payments

During the first quarters of 2012 and 2011, we recognized share-based compensation expense related to the following Class B common stock awards to certain directors, officers and other eligible employees, pursuant to the Molson Coors Brewing Company Incentive Compensation Plan ("Incentive Compensation Plan"): restricted stock units ("RSU"), deferred stock units ("DSU"), performance units ("PU"), stock options and stock-only stock appreciation rights ("SOSAR").

The following table summarizes components of the share-based compensation expense:

	Thirteen Weeks Ended
	March 31, 2012			March 26, 2011
	(In millions)
Stock options and SOSARs
Pre-tax compensation expense	$	1.8		$	2.8
Tax benefit	(0.5		)	(0.8		)
After-tax compensation expense	$	1.3		$	2.0
RSUs and DSUs
Pre-tax compensation expense	$	2.0		$	2.3
Tax benefit	(0.6		)	(0.5		)
After-tax compensation expense	$	1.4		$	1.8
PUs
Pre-tax compensation expense	$	1.0		$	3.0
Tax benefit	(0.4		)	(0.9		)
After-tax compensation expense	$	0.6		$	2.1
Total after-tax compensation expense	$	3.3		$	5.9

During the first quarter of2012, we granted 0.2 million stock options, 0.3 million RSUs and 0.7 million PUs, all of which were outstanding, other than an insignificant amount of cancellations, as of March 31, 2012.

The mark-to-market share-based compensation expense before tax, related to our share-based awards granted to former CBC employees now employed by MillerCoors, recorded during the first quarter of2011, was a benefit of $0.2 million. We did not record an adjustment in the first quarter of2012 as these awards were fully vested as of the end of the second quarter of 2011. No further adjustments will be recorded related to these awards. These amounts are included in the table above.

As of March 31, 2012, there was $34.5 million of total unrecognized pre-tax compensation expense related to non-vested shares from share-based compensation arrangements granted under the Incentive Compensation Plan. This compensation expense is expected to be recognized over a weighted-average period of approximately 1.6 years.

The following table represents the summary of stock options and SOSARs outstanding as of March 31, 2012, and the activity during the first quarter of2012:

	Outstanding options	Weighted-average exercise price per share	Weighted-average remaining contractual life (years)	Aggregate intrinsic value
	(In millions, except per share amounts and years)
Outstanding as of December 31, 2011	7.1	$38.69	4.31	$	43.1
Granted	0.2	$42.80
Exercised	(0.7)	$29.80
Forfeited	—	$43.53
Outstanding as of March 31, 2012	6.6	$39.70	4.59	$	42.8
Exercisable at March 31, 2012	5.6	$39.09	3.96	$	41.0

The total intrinsic value of options exercised during the first quarter of2012 and 2011 was $9.4 million and $1.5 million, respectively. During the first quarter of2012, cash received from stock option exercises was $19.7 million and the total net tax benefit to be realized for the tax deductions from these option exercises was $3.3 million.

The following table represents non-vested RSUs, DSUs and PUs as of March 31, 2012, and the activity during the first quarter of2012:

	RSUs and DSUs		PUs
	Units	Weighted-average grant date fair value per unit	Units		Weighted-average grant date fair value per unit
	(In millions, except per unit amounts)		(In millions, except per unit amounts)
Non-vested as of December 31, 2011	0.6	$43.35	2.0		$11.67
Granted	0.3	$42.80	0.7		$14.35
Vested	—	$43.31	—		$—
Forfeited	—	$43.26	(0.1	)	$11.05
Non-vested as of March 31, 2012	0.9	$43.19	2.6		$11.03

The fair value of each option granted in the first quarter of2012 and 2011, respectively, was determined on the date of grant using the Black-Scholes option-pricing model with the following weighted-average assumptions:

	Thirteen Weeks Ended
	March 31, 2012	March 26, 2011
Risk-free interest rate	1.56%	2.55%
Dividend yield	2.98%	2.52%
Volatility range	25.80%-27.56%	25.26%-28.11%
Weighted-average volatility	25.84%	26.37%
Expected term (years)	4.0-7.7	4.0-7.7
Weighted-average fair market value	$8.18	$9.66

The risk-free interest rates utilized for periods throughout the contractual life of the options are based on a zero-coupon U.S. Treasury security yield at the time of grant. Expected volatility is based on historical volatility of our stock. The expected term of options is estimated based upon observations of historical employee option exercise patterns and trends. The range on the expected term results from separate groups of employees who exhibit different historical exercise behavior.

As of March 31, 2012, there were 3.2 million shares of our Class B common stock available for the issuance of stock options, SOSARs, RSUs, DSUs, PUs and performance share units under the Incentive Compensation Plan.