Molson Coors Brewing Company (NYSE: TAP; TSX: TPX) today reported a 7.9
percent increase in underlying after-tax income for the second quarter
2014, driven by improved performance from MillerCoors and Europe, along
with lower interest expense versus a year ago. Worldwide beer volume
decreased 0.9 percent, but net sales increased 0.9 percent in the second
quarter of 2014.
Molson Coors president and chief executive officer Peter Swinburn said,
“In the second quarter, Molson Coors increased underlying after-tax
income nearly 8 percent, grew underlying EBITDA 4 percent, and expanded
gross, operating and after-tax margins. Underlying earnings per share
increased nearly 7 percent, and U.S. GAAP after-tax earnings increased
9.5 percent versus a year ago. We continued to build a bigger and
stronger brand portfolio that is delivering value-added innovation;
continued investment in our core brands; and increased our share in
above premium. As a result, we achieved positive pricing and mix,
resulting in higher net sales in the quarter. We also continued to
improve our operations by reducing costs, implementing common processes,
and focusing on Profit After Capital Charge, or PACC, as the key driver
for our cash and capital allocation strategy.”
Swinburn added, “In the second half of 2014, we will manage through the
aftermath of the flooding in Central Europe and the loss of the Modelo
brands in Canada. We also expect higher brand investments in all of our
businesses, which is part of our strong and consistent execution of our
brand-led profit growth strategy as a driver of total shareholder
return. This strategy is generating steady, growing pretax profit; a
strong and increasing EBITDA; and strong cash returns to shareholders
and will have an even greater impact as market conditions continue to
improve.”
Underlying EBITDA and Free Cash Flow
Underlying EBITDA reached $476.2 million in the second quarter, a 4.0
percent increase from a year ago.
Underlying free cash flow in the first half of 2014 was $331.7 million.
This represents a decrease of $34.1 million from the prior year, driven
by higher working capital this year, partially offset by higher net
income.
Foreign Exchange
The Company’s second quarter underlying consolidated pretax income
includes the effect of foreign currency movements that were $4.9 million
positive in Europe and $6.3 million negative in Canada.
Effective Income Tax Rates
The Company’s second quarter effective income tax rate was 11 percent on
a reported and underlying basis, up from 10 percent a year earlier.
Debt
Total debt at the end of the second quarter was $3.66 billion, and cash
and cash equivalents totaled $506.0 million, resulting in net debt of
$3.15 billion, which is $612 million lower than the prior year.
Second Quarter Business Segment Results
The following are the Company’s second quarter 2014 results by business
segment:
United States Business (MillerCoors)(2)
Molson Coors underlying U.S. segment equity income increased 10.3
percent to $190.3 million in the quarter.
MillerCoors Operating and Financial Highlights
MillerCoors underlying net income for the quarter increased 8.0 percent
to $445.7 million, driven by positive pricing, sales mix and cost
savings.
MillerCoors domestic sales to retailers (STRs) declined 1.2 percent for
the quarter. Domestic sales to wholesalers (STWs) decreased 1.7 percent.
Domestic net revenue per hectoliter, which excludes contract brewing and
company-owned-distributor sales, grew 3.6 percent primarily due to
favorable net pricing and positive brand mix. Total company net revenue
per hectoliter, including contract brewing and company-owned distributor
sales, increased 3.1 percent. Contract brewing volumes increased 6.4
percent.
Cost of goods sold (COGS) per hectoliter increased 1.9 percent, driven
by brand mix, as cost savings offset inflation. Marketing, general and
administrative (MG&A) expense increased 0.6 percent, driven primarily by
higher media investment and employee-related expenses.
Depreciation and amortization expenses for MillerCoors in the second
quarter were $77.4 million, and additions to tangible and intangible
assets totaled $70.0 million.
Canada Business
Canada underlying pretax income decreased 6.5 percent to $120.9 million
in the quarter and decreased 1.6 percent on a constant currency basis.
The loss of the Modelo brands this year and unfavorable foreign currency
drove all of the decline in U.S. dollar income. Our results for second
quarter 2013 benefited from $6.6 million of equity earnings and
administrative cost recoveries related to the Modelo brands joint
venture, which was terminated at the end of February 2014. A decrease in
the Canadian dollar versus the U.S. dollar resulted in a $6.3 million
negative foreign exchange impact on underlying pretax income in the
quarter. These factors were partially offset by cost savings in the
quarter.
STRs decreased 3.1 percent on a reported basis in the second quarter,
entirely due to our sale of the distribution rights to the Modelo brands
earlier this year. Our market share(3) declined approximately
one-half point. Molson Coors Canada sales volume decreased 2.0 percent
in the second quarter. Net sales per hectoliter increased 0.5 percent in
local currency, driven by positive net pricing and mix.
COGS per hectoliter increased 0.5 percent in local currency, driven by
the loss of the Modelo brands this year and brewing and material
inflation, partially offset by cost savings. MG&A expense decreased 1.0
percent in local currency, driven by lower marketing spending.
Europe Business
Europe underlying pretax income increased 13.3 percent to $86.8 million
in the quarter and increased 6.9 percent on a constant currency basis.
The increase was driven by cost savings and positive geographic mix,
along with a $4.9 million benefit from favorable foreign currency
movements.
Europe sales volume decreased 1.3 percent, as the region was negatively
impacted by devastating flooding in parts of Serbia, Bosnia, Croatia and
Bulgaria. Consumer demand was also weak in Romania due to poor weather
in the quarter. Lower volume in these markets was partially offset by
strong growth in the U.K., Hungary and Czech Republic. Europe net sales
per hectoliter increased 1.9 percent in local currency driven by
positive geographic mix, primarily related to higher sales in the U.K.
COGS per hectoliter decreased 0.3 percent in local currency as a result
of cost savings and lower logistics expense.
MG&A expense increased 2.3 percent in local currency, due to higher
marketing and sales investments, partially offset by cost savings.
International Business
The International segment posted an underlying pretax loss of $3.7
million in the second quarter, versus a loss of $3.1 million a year ago,
due to higher marketing investments, which drove strong double-digit
top-line growth.
Total International sales volume, including royalty volume, increased
21.6 percent, primarily due to strong Coors Light growth in Mexico and
Latin America and significant growth in India, partially offset by
continued industry weakness in our Ukraine and Russia license markets.
Net sales per hectoliter decreased 6.7 percent, driven by geographic mix
and foreign currency movements.
COGS per hectoliter decreased 6.5 percent, due to fixed-cost leverage in
India from higher volumes, along with foreign currency movements.
International MG&A expense increased 23.5 percent, driven by higher
marketing investments.
Corporate
Underlying Corporate pretax expense totaled $63.5 million for the second
quarter, a $7.4 million improvement versus the prior year driven by
lower interest expense, partially offset by higher incentive
compensation.
Change in Interim Period Accounting for
Advertising Expenses
Effective the first quarter of 2014, we changed our policy for
recognizing advertising expenses during interim periods and have applied
this change retrospectively. The change in interim accounting affects
the timing of advertising expenses over interim periods but has no
impact on full year results. We have provided the impact to fiscal year
2013 quarterly results on our investor relations website.
Special and Other Non-Core Items
The following special and other non-core items have been excluded from
underlying pretax earnings.
During the quarter, Molson Coors recognized special items of $2.7
million on a pretax basis. This charge was largely driven by $1.8
million in costs related to the significant flooding in Serbia, Bosnia
and Croatia and $0.9 million of restructuring costs incurred during the
quarter.
MillerCoors reported $0.5 million in special charges for restructuring.
Our portion of these charges is $0.2 million at our 42 percent economic
ownership share.
Other non-core items resulted in $1.4 million of pretax income, which
was driven by unrealized mark-to-market net gains on commodity hedges.
2014 Second Quarter Conference Call
Molson Coors Brewing Company will conduct an earnings conference call
with financial analysts and investors at 11:00 a.m. Eastern Time today
to discuss the Company’s 2014 second quarter results. The Company will
provide a live webcast of the earnings call.
The Company will also host an online, real-time webcast of an Investor
Relations Follow-up Session with financial analysts and institutional
investors at 2:00 p.m. Eastern Time. Both webcasts will be accessible
via the Company’s website, www.molsoncoors.com.
Online replays of the webcasts will be available until 11:59 p.m.
Eastern Time on November 6, 2014. The Company will post this release and
related financial statements on its website today.
Upcoming Investor Event
The Company will host an online, real-time webcast in September at the
following event:
Peter Swinburn and Gavin Hattersley, Molson Coors Chief Financial
Officer, will present at the Barclays Back-to-School Conference in
Boston on Thursday, September 4, 2014, at 9:00 a.m. Eastern Time.
A live webcast will be accessible via the Molson Coors Brewing Company
website, on the Investors page. Additionally, an online replay of the
presentation webcast will be available within two hours after the
presentations.
Footnotes:
(1) The Company calculates non-GAAP underlying after-tax
income, underlying EBITDA, underlying free cash flow and constant
currency results by excluding special and other non-core items from the
nearest U.S. GAAP performance measure, which is net income from
continuing operations attributable to MCBC for both underlying after-tax
income and underlying EBITDA and net cash provided by operating
activities for underlying free cash flow. For further details regarding
these adjustments, please see the section “Special and Other Non-Core
Items,” along with tables for reconciliations to the nearest U.S. GAAP
measures. Unless otherwise indicated, all $ amounts are in U.S. Dollars
and all quarterly comparative results are for the Company’s fiscal
second quarter ended June 30, 2014, compared to the fiscal second
quarter ended June 29, 2013. Additionally, all per-hectoliter
calculations exclude contract brewing and non-owned factored beverage
volume in the denominator but include the financial impact of these
sales in the numerator, unless otherwise indicated.
(2) MillerCoors, a U.S. joint venture of Molson Coors Brewing
Company and SABMiller plc, was launched on July 1, 2008. Molson Coors
has a 42 percent economic interest in MillerCoors, which is accounted
for using the equity method. Molson Coors’ interest in MillerCoors
results, along with certain adjustments under U.S. GAAP, is reflected in
“Equity Income in MillerCoors.” This release includes reconciliation
from MillerCoors Net Income to Molson Coors Brewing Company Equity
Income in MillerCoors and Non-GAAP U.S. Segment Underlying Pretax Income
(see Table 6).
(3) Excludes the Modelo brands from our Canada STR results in
second quarter 2013. The Company terminated on February 28, 2014, its
joint venture that sold the Modelo brands in Canada, and control of the
brands reverted to Anheuser-Busch InBev.
Overview of Molson Coors
Molson Coors Brewing Company is one of the world’s largest brewers. The
Company’s operating segments include Canada, the United States, Europe,
and Molson Coors International (MCI). The Company has a diverse
portfolio of owned and partner brands, including signature brands
Carling, Coors Light, Molson Canadian and Staropramen. Molson Coors is
listed as the beverage industry sector leader on the 2013/2014 Dow Jones
Sustainability World Index (W1SGITRD), the most recognized global
benchmark of sustainability among global corporations. For more
information on Molson Coors Brewing Company, visit the company’s
website, www.molsoncoors.com.
About Molson Coors Canada Inc.
Molson Coors Canada Inc. (MCCI) is a subsidiary of Molson Coors Brewing
Company. MCCI Class A and Class B exchangeable shares offer
substantially the same economic and voting rights as the respective
classes of common shares of MCBC, as described in MCBC’s annual proxy
statement and Form 10-K filings with the U.S. Securities and Exchange
Commission. The trustee holder of the special Class A voting stock and
the special Class B voting stock has the right to cast a number of votes
equal to the number of then outstanding Class A exchangeable shares and
Class B exchangeable shares, respectively.
Forward-Looking Statements
This press release includes estimates or projections that constitute
“forward-looking statements” within the meaning of the U.S. federal
securities laws. Generally, the words “believe,” "expect,”
"intend,” "anticipate,” “project,” “will,” and similar expressions
identify forward-looking statements, which generally are not historic in
nature. Although the Company believes that the assumptions upon
which its forward-looking statements are based are reasonable, it can
give no assurance that these assumptions will prove to be correct.
Important factors that could cause actual results to differ materially
from the Company’s historical experience, and present projections and
expectations are disclosed in the Company’s filings with the Securities
and Exchange Commission (“SEC”). These factors include, among
others, impact of competitive pricing and product pressures; health of
the beer industry and our brands in our markets; economic conditions in
our markets; pension plan costs; availability or increase in the cost of
packaging materials; our ability to maintain manufacturer/distribution
agreements; our ability to implement our strategic initiatives,
including executing and realizing cost savings; our ability to
successfully integrate our Central Europe business; changes in legal and
regulatory requirements, including the regulation of distribution
systems; increase in the cost of commodities used in the business; our
ability to maintain brand image, reputation and product quality; our
ability to maintain good labor relations; changes in our supply chain
system; additional impairment charges; the impact of climate change and
the availability and quality of water; risks relating to operations
outside North America; success of our joint ventures; lack of
full-control over the operations of MillerCoors; and other risks
discussed in our filings with the SEC, including our Annual Report on
Form 10-K for the year-ended December 31, 2013, which are available from
the SEC. All forward-looking statements in this press release are
expressly qualified by such cautionary statements and by reference to
the underlying assumptions. You should not place undue reliance on
forward-looking statements, which speak only as of the date they are
made. We do not undertake to update forward-looking statements,
whether as a result of new information, future events or otherwise.
Use of Non-GAAP Measures
In addition to financial measures presented on the basis of accounting
principles generally accepted in the United States of America
("U.S. GAAP"), we also present pretax and after-tax "underlying income,"
"underlying effective tax rate," "underlying free cash flow," and
"constant currency," which are non-GAAP measures and should be viewed as
supplements to (not substitutes for) our results of operations presented
under U.S. GAAP. We also present underlying earnings before interest,
taxes, depreciation, and amortization ("underlying EBITDA") as a
non-GAAP measure. Our management uses underlying income, underlying
EBITDA, underlying effective tax rate, underlying free cash flow and
constant currency as measures of operating performance to assist in
comparing performance from period to period on a consistent basis; as a
measure for planning and forecasting overall expectations and for
evaluating actual results against such expectations; in communications
with the board of directors, stockholders, analysts and investors
concerning our financial performance; as useful comparisons to the
performance of our competitors; and as metrics of certain management
incentive compensation calculations. We believe that underlying income,
underlying EBITDA, underlying effective tax rate, underlying free cash
flow and constant currency performance are used by and are useful to
investors and other users of our financial statements in evaluating our
operating performance because they provide an additional tool to
evaluate our performance without regard to special and non-core items,
which can vary substantially from company to company depending upon
accounting methods and book value of assets and capital structure. We
have provided reconciliations of all non-GAAP measures to their nearest
U.S. GAAP measures and have consistently applied the adjustments within
our reconciliations in arriving at each non-GAAP measure. These
adjustments consist of special items from our U.S. GAAP financial
statements as well as other non-core items, such as acquisition and
integration related costs, unrealized mark-to-market gains and losses,
and gains and losses on sales of non-operating assets, included in our
U.S. GAAP results that warrant adjustment to arrive at non-GAAP results.
We consider these items to be necessary adjustments for purposes of
evaluating our ongoing business performance and are often considered
non-recurring. Such adjustments are subjective and involve significant
management judgment.
|
|
|
Reconciliations to Nearest U.S. GAAP Measure
|
|
|
|
Molson Coors Brewing Company and Subsidiaries
|
Table 1: Underlying After-Tax Income
|
($ In millions, except per share data)
|
(Unaudited)
|
|
|
|
|
|
Three Months Ended
|
|
|
June 30, 2014
|
|
|
June 29, 2013(1)
|
U.S. GAAP: Net income
attributable to MCBC from continuing operations
|
|
$
|
290.7
|
|
|
|
$
|
265.6
|
|
Per diluted share
|
|
$
|
1.56
|
|
|
|
$
|
1.44
|
|
Add/(less):
|
|
|
|
|
|
|
|
Special items, net
|
|
2.7
|
|
|
|
1.3
|
|
42% of MillerCoors special items, net of tax(2)
|
|
0.2
|
|
|
|
—
|
|
Acquisition and integration related costs(3)
|
|
—
|
|
|
|
2.1
|
|
Unrealized mark-to-market (gains) and losses(4)
|
|
(1.4
|
)
|
|
|
3.9
|
|
Tax effects on non-GAAP items
|
|
0.5
|
|
|
|
(1.6
|
)
|
Non-GAAP: Underlying
after-tax income
|
|
$
|
292.7
|
|
|
|
$
|
271.3
|
|
Per diluted share
|
|
$
|
1.57
|
|
|
|
$
|
1.47
|
|
|
(1)
|
|
|
Amounts have been adjusted to reflect the change in interim
accounting for advertising expenses.
|
|
|
|
|
|
|
(2)
|
|
|
Included in Equity Income in MillerCoors.
|
|
|
|
|
|
|
(3)
|
|
|
Included in Marketing, General and Administrative Expenses, of which
$0.5 million was recorded as depreciation expense for the three
months ended June 29, 2013.
|
|
|
|
|
|
|
(4)
|
|
|
In Q2 2014, $1.4 million gain included in Cost of Goods Sold. In Q2
2013, $0.9 million loss included in Cost of Goods Sold, $3.2 million
gain included in Interest Expense and $6.2 million loss included in
Other Income (Expense), net.
|
|
|
|
|
|
|
Molson Coors Brewing Company and Subsidiaries
|
Table 2: Underlying Pretax Income (Loss)
|
($ In millions)
|
(Unaudited)
|
|
|
|
|
|
|
|
Business
|
|
Total
|
|
|
Canada
|
|
U.S.
|
|
Europe
|
|
MCI
|
|
Corporate
|
|
Consolidated
|
U.S. GAAP: 2014 2nd Q
income (loss) from continuing operations before income taxes
|
|
$
|
120.8
|
|
|
$
|
190.1
|
|
|
$
|
84.5
|
|
|
$
|
(3.7
|
)
|
|
$
|
(62.4
|
)
|
|
$
|
329.3
|
|
Add/(less):
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Special items, net
|
|
0.1
|
|
|
—
|
|
|
2.3
|
|
|
—
|
|
|
0.3
|
|
|
2.7
|
|
42% of MillerCoors special items, net of tax(1)
|
|
—
|
|
|
0.2
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
0.2
|
|
Unrealized mark-to-market (gains) and losses(2)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(1.4
|
)
|
|
(1.4
|
)
|
Non-GAAP: 2014 2nd Q
underlying pretax income (loss)
|
|
$
|
120.9
|
|
|
$
|
190.3
|
|
|
$
|
86.8
|
|
|
$
|
(3.7
|
)
|
|
$
|
(63.5
|
)
|
|
$
|
330.8
|
|
Percent change 2014 2nd Q vs. 2013 2nd Q underlying pretax income
(loss)
|
|
(6.5)%
|
|
10.3%
|
|
13.3%
|
|
(19.4)%
|
|
10.4%
|
|
8.6%
|
U.S. GAAP: 2013 2nd Q
income (loss) from continuing operations before income taxes(3)
|
|
$
|
128.6
|
|
|
$
|
172.6
|
|
|
$
|
75.8
|
|
|
$
|
(4.0
|
)
|
|
$
|
(75.8
|
)
|
|
$
|
297.2
|
|
Add/(less):
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Special items, net
|
|
0.7
|
|
|
—
|
|
|
(0.3
|
)
|
|
0.9
|
|
|
—
|
|
|
1.3
|
|
Acquisition and integration related costs(4)
|
|
—
|
|
|
—
|
|
|
1.1
|
|
|
—
|
|
|
1.0
|
|
|
2.1
|
|
Unrealized mark-to-market (gains) and losses(2)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
3.9
|
|
|
3.9
|
|
Non-GAAP: 2013 2nd Q
underlying pretax income (loss)
|
|
$
|
129.3
|
|
|
$
|
172.6
|
|
|
$
|
76.6
|
|
|
$
|
(3.1
|
)
|
|
$
|
(70.9
|
)
|
|
$
|
304.5
|
|
|
(1)
|
|
|
Included in Equity Income in MillerCoors.
|
|
|
|
|
|
|
(2)
|
|
|
In Q2 2014, $1.4 million gain included in Cost of Goods Sold. In Q2
2013, $0.9 million loss included in Cost of Goods Sold, $3.2 million
gain included in Interest Expense and $6.2 million loss included in
Other Income (Expense), net.
|
|
|
|
|
|
|
(3)
|
|
|
Amounts have been adjusted to reflect the change in interim
accounting for advertising expenses.
|
|
|
|
|
|
|
(4)
|
|
|
Included in Marketing, General and Administrative Expenses, of which
$0.5 million was recorded as depreciation expense for the three
months ended June 29, 2013.
|
|
|
|
|
|
|
Molson Coors Brewing Company and Subsidiaries
|
Table 3: Underlying EBITDA
|
($ In millions)
|
(Unaudited)
|
|
|
|
|
|
|
|
Three Months Ended
|
|
Six Months Ended
|
|
|
June 30, 2014
|
|
June 29, 2013(1)
|
|
% change
|
|
June 30, 2014
|
|
June 29, 2013(1)
|
|
% change
|
U.S. GAAP: Net income
attributable to MCBC from continuing operations
|
|
$
|
290.7
|
|
|
$
|
265.6
|
|
|
9.5
|
%
|
|
$
|
456.0
|
|
|
$
|
295.0
|
|
|
54.6%
|
Add: Net income (loss) attributable to noncontrolling
interests
|
|
2.2
|
|
|
1.6
|
|
|
37.5
|
%
|
|
1.7
|
|
|
3.0
|
|
|
(43.3)%
|
U.S. GAAP: Net income
(loss) from continuing operations
|
|
$
|
292.9
|
|
|
$
|
267.2
|
|
|
9.6
|
%
|
|
$
|
457.7
|
|
|
$
|
298.0
|
|
|
53.6%
|
Add: Interest expense (income), net
|
|
36.2
|
|
|
41.2
|
|
|
(12.1
|
)%
|
|
71.6
|
|
|
116.1
|
|
|
(38.3)%
|
Add: Income tax expense (benefit)
|
|
36.4
|
|
|
30.0
|
|
|
21.3
|
%
|
|
41.2
|
|
|
32.0
|
|
|
28.8%
|
Add: Depreciation and amortization
|
|
77.2
|
|
|
80.7
|
|
|
(4.3
|
)%
|
|
158.4
|
|
|
160.9
|
|
|
(1.6)%
|
Adjustments included in underlying income(2)
|
|
1.3
|
|
|
7.3
|
|
|
(82.2
|
)%
|
|
(62.1
|
)
|
|
29.2
|
|
|
N/M
|
Adjustments to arrive at underlying EBITDA(3)
|
|
—
|
|
|
2.7
|
|
|
(100.0
|
)%
|
|
(4.9
|
)
|
|
(27.0
|
)
|
|
(81.9)%
|
Adjustments to arrive at underlying EBITDA related to our investment
in MillerCoors(4)
|
|
32.2
|
|
|
28.9
|
|
|
11.4
|
%
|
|
65.5
|
|
|
57.4
|
|
|
14.1%
|
Non-GAAP: Underlying EBITDA
|
|
$
|
476.2
|
|
|
$
|
458.0
|
|
|
4.0
|
%
|
|
$
|
727.4
|
|
|
$
|
666.6
|
|
|
9.1%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
N/M = Not meaningful
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1)
|
|
|
Amounts have been adjusted to reflect the change in interim
accounting for advertising expenses.
|
|
|
|
|
|
|
(2)
|
|
|
Includes adjustments to non-GAAP underlying income within the table
above related to special and non-core items.
|
|
|
|
|
|
|
(3)
|
|
|
Represents adjustments to remove amounts related to interest,
depreciation and amortization included in the adjustments to
non-GAAP underlying income above, as these items are added back
adjustments to net income attributable to MCBC from continuing
operations.
|
|
|
|
|
|
|
(4)
|
|
|
Adjustments to our equity income from MillerCoors, which include our
proportionate share of MillerCoors' interest, income tax,
depreciation and amortization, specials, and amortization of the
difference between the MCBC contributed cost basis and proportionate
share of the underlying equity in net assets of MillerCoors.
|
|
|
|
|
|
|
Molson Coors Brewing Company and Subsidiaries
|
Table 4: Underlying Free Cash Flow
|
($ In millions)
|
(Unaudited)
|
|
|
|
|
|
|
|
|
|
Six Months Ended
|
|
|
|
|
June 30, 2014
|
|
|
June 29, 2013
|
U.S. GAAP:
|
|
Net Cash Provided by Operating Activities
|
|
$
|
576.0
|
|
|
|
$
|
591.0
|
|
Less:
|
|
Additions to properties(1)
|
|
(126.4
|
)
|
|
|
(149.7
|
)
|
Less:
|
|
Investment in MillerCoors(1)
|
|
(764.4
|
)
|
|
|
(615.3
|
)
|
Add:
|
|
Return of capital from MillerCoors(1)
|
|
691.9
|
|
|
|
515.2
|
|
Add/(Less):
|
|
Cash impact of Special items(2)
|
|
(49.7
|
)
|
|
|
17.7
|
|
Add:
|
|
Costs related to the Acquisition(3)
|
|
—
|
|
|
|
6.9
|
|
Add:
|
|
MillerCoors investments in businesses(4)
|
|
1.3
|
|
|
|
—
|
|
Add:
|
|
MillerCoors cash impact of Special items(4)
|
|
3.0
|
|
|
|
—
|
|
Non-GAAP:
|
|
Underlying Free Cash Flow
|
|
$
|
331.7
|
|
|
|
$
|
365.8
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1)
|
|
|
Included in net cash used in investing activities.
|
|
|
|
|
|
|
(2)
|
|
|
Included in net cash provided by operating activities and primarily
reflects cash received for the early termination of MMI, as well as
costs paid for restructuring activities.
|
|
|
|
|
|
|
(3)
|
|
|
Included in net cash provided by operating activities and reflects
acquisition and integration costs paid.
|
|
|
|
|
|
|
(4)
|
|
|
Amounts represent our proportionate 42% share of the cash flow
impacts.
|
|
|
|
|
|
|
MillerCoors LLC
|
Table 5: Underlying Net Income Attributable to
MillerCoors
|
($ In millions)
|
(Unaudited)
|
|
|
|
|
|
|
|
|
Three Months Ended
|
|
|
Six Months Ended
|
|
|
June 30, 2014
|
|
|
June 30, 2013
|
|
|
June 30, 2014
|
|
|
June 30, 2013
|
U.S. GAAP: Net income
attributable to MillerCoors
|
|
$
|
445.2
|
|
|
|
$
|
412.7
|
|
|
|
$
|
736.4
|
|
|
|
$
|
684.6
|
Add: Special items, net of tax
|
|
0.5
|
|
|
|
—
|
|
|
|
1.2
|
|
|
|
—
|
Non-GAAP: Underlying net
income attributable to MillerCoors
|
|
$
|
445.7
|
|
|
|
$
|
412.7
|
|
|
|
$
|
737.6
|
|
|
|
$
|
684.6
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Molson Coors Brewing Company and Subsidiaries
|
Table 6: Underlying Equity Income in MillerCoors
|
($ In millions)
|
(Unaudited)
|
|
|
|
|
|
|
|
|
Three Months Ended
|
|
|
Six Months Ended
|
|
|
June 30, 2014
|
|
|
June 29, 2013
|
|
|
June 30, 2014
|
|
|
June 29, 2013
|
U.S. GAAP: Net Income
Attributable to MillerCoors
|
|
$
|
445.2
|
|
|
|
$
|
412.7
|
|
|
|
$
|
736.4
|
|
|
|
$
|
684.6
|
|
Multiply: MCBC economic interest
|
|
42
|
%
|
|
|
42
|
%
|
|
|
42
|
%
|
|
|
42
|
%
|
MCBC proportionate share of MillerCoors net income
|
|
$
|
187.0
|
|
|
|
$
|
173.3
|
|
|
|
$
|
309.3
|
|
|
|
$
|
287.5
|
|
Add: Amortization of the difference between MCBC contributed
cost basis and proportionate share of the underlying equity in net
assets of MillerCoors(1)
|
|
1.2
|
|
|
|
1.0
|
|
|
|
2.3
|
|
|
|
2.2
|
|
Add: Share-based compensation adjustment(2)
|
|
1.9
|
|
|
|
(1.7
|
)
|
|
|
1.3
|
|
|
|
0.3
|
|
U.S. GAAP: Equity Income in
MillerCoors
|
|
$
|
190.1
|
|
|
|
$
|
172.6
|
|
|
|
$
|
312.9
|
|
|
|
$
|
290.0
|
|
Add: MCBC proportionate share of MillerCoors special items,
net of tax
|
|
0.2
|
|
|
|
—
|
|
|
|
0.5
|
|
|
|
—
|
|
Non-GAAP: Underlying Equity
Income in MillerCoors
|
|
$
|
190.3
|
|
|
|
$
|
172.6
|
|
|
|
$
|
313.4
|
|
|
|
$
|
290.0
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1)
|
|
|
Our net investment in MillerCoors is based on the carrying values of
the net assets contributed to the joint venture, which is less than
our proportionate share of underlying equity (42%) of MillerCoors
(contributed by both Coors Brewing Company and Miller Brewing
Company) by $663.9 million as of June 30, 2014. This basis
difference, with the exception of certain non-amortizing items
(goodwill, land, etc.), is being amortized as additional equity
income over the remaining useful lives of the contributed long-lived
amortizing assets.
|
|
|
|
|
|
|
(2)
|
|
|
The net adjustment is to eliminate all share-based compensation
impacts related to pre-existing SABMiller plc equity awards held by
former Miller Brewing Company employees employed by MillerCoors.
|
|
|
|
|
|
|
Molson Coors Brewing Company and Subsidiaries
|
Table 7: Constant Currency Results: Constant
Currency Reporting Net Sales, U.S. GAAP Pretax
|
Income and Underlying Pretax Income
|
|
U.S. GAAP: Net Sales (In millions)
|
|
|
|
|
|
Three Months Ended
|
|
|
|
|
|
|
|
|
Reported %
|
|
|
Foreign
|
|
|
Constant Currency
|
|
|
|
|
|
|
|
|
Increase
|
|
|
Exchange
|
|
|
% Increase
|
|
|
June 30, 2014
|
|
|
June 29, 2013
|
|
|
(Decrease)
|
|
|
Impact ($)
|
|
|
(Decrease)
|
Canada
|
|
$
|
516.5
|
|
|
|
$
|
558.2
|
|
|
|
(7.5
|
)%
|
|
|
$
|
(33.8
|
)
|
|
|
(1.4
|
)%
|
Europe
|
|
629.4
|
|
|
|
586.2
|
|
|
|
7.4
|
%
|
|
|
39.7
|
|
|
|
0.6
|
%
|
MCI
|
|
43.7
|
|
|
|
34.7
|
|
|
|
25.9
|
%
|
|
|
(0.9
|
)
|
|
|
28.5
|
%
|
Corporate
|
|
0.4
|
|
|
|
0.3
|
|
|
|
33.3
|
%
|
|
|
—
|
|
|
|
33.3
|
%
|
Eliminations(1)
|
|
(1.5
|
)
|
|
|
(1.4
|
)
|
|
|
(7.1
|
)%
|
|
|
—
|
|
|
|
(7.1
|
)%
|
Molson Coors Consolidated Total
|
|
$
|
1,188.5
|
|
|
|
$
|
1,178.0
|
|
|
|
0.9
|
%
|
|
|
$
|
5.0
|
|
|
|
0.5
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1)
|
|
|
Reflects intercompany sales from Europe to MCI, and the offset is
included within MCI cost of goods sold. These amounts are eliminated
in the consolidated totals.
|
|
|
|
U.S. GAAP: Pretax Income (In millions)
|
|
|
|
|
|
Three Months Ended
|
|
|
|
|
|
|
|
|
Reported %
|
|
|
Foreign
|
|
|
Constant Currency
|
|
|
|
|
|
|
|
|
Increase
|
|
|
Exchange
|
|
|
% Increase
|
|
|
June 30, 2014
|
|
|
June 29, 2013(1)
|
|
|
(Decrease)
|
|
|
Impact ($)
|
|
|
(Decrease)
|
MillerCoors (42% portion)
|
|
$
|
190.1
|
|
|
|
$
|
172.6
|
|
|
|
10.1
|
%
|
|
|
$
|
—
|
|
|
|
10.1
|
%
|
Canada
|
|
120.8
|
|
|
|
128.6
|
|
|
|
(6.1
|
)%
|
|
|
(6.3
|
)
|
|
|
(1.2
|
)%
|
Europe
|
|
84.5
|
|
|
|
75.8
|
|
|
|
11.5
|
%
|
|
|
4.8
|
|
|
|
5.1
|
%
|
MCI
|
|
(3.7
|
)
|
|
|
(4.0
|
)
|
|
|
7.5
|
%
|
|
|
0.1
|
|
|
|
5.0
|
%
|
Corp
|
|
(62.4
|
)
|
|
|
(75.8
|
)
|
|
|
17.7
|
%
|
|
|
0.5
|
|
|
|
17.0
|
%
|
Molson Coors Consolidated Total
|
|
$
|
329.3
|
|
|
|
$
|
297.2
|
|
|
|
10.8
|
%
|
|
|
$
|
(0.9
|
)
|
|
|
11.1
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1)
|
|
|
Amounts have been adjusted to reflect the change in interim
accounting for advertising expenses.
|
|
|
|
Non-GAAP: Underlying Pretax Income (In millions)
|
|
|
|
|
|
Three Months Ended
|
|
|
|
|
|
|
|
|
Reported %
|
|
|
Foreign
|
|
|
Constant Currency
|
|
|
|
|
|
|
|
|
Increase
|
|
|
Exchange
|
|
|
% Increase
|
|
|
June 30, 2014
|
|
|
June 29, 2013(1)
|
|
|
(Decrease)
|
|
|
Impact ($)
|
|
|
(Decrease)
|
MillerCoors (42% portion)
|
|
$
|
190.3
|
|
|
|
$
|
172.6
|
|
|
|
10.3
|
%
|
|
|
$
|
—
|
|
|
|
10.3
|
%
|
Canada
|
|
120.9
|
|
|
|
129.3
|
|
|
|
(6.5
|
)%
|
|
|
(6.3
|
)
|
|
|
(1.6
|
)%
|
Europe
|
|
86.8
|
|
|
|
76.6
|
|
|
|
13.3
|
%
|
|
|
4.9
|
|
|
|
6.9
|
%
|
MCI
|
|
(3.7
|
)
|
|
|
(3.1
|
)
|
|
|
(19.4
|
)%
|
|
|
0.1
|
|
|
|
(22.6
|
)%
|
Corp
|
|
(63.5
|
)
|
|
|
(70.9
|
)
|
|
|
10.4
|
%
|
|
|
0.5
|
|
|
|
9.7
|
%
|
Molson Coors Consolidated Total
|
|
$
|
330.8
|
|
|
|
$
|
304.5
|
|
|
|
8.6
|
%
|
|
|
$
|
(0.8
|
)
|
|
|
8.9
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1)
|
|
|
Amounts have been adjusted to reflect the change in interim
accounting for advertising expenses.
|
|
|
|
U.S. GAAP: Net Sales (In millions)
|
|
|
|
|
|
Six Months Ended
|
|
|
|
|
|
|
|
|
Reported %
|
|
|
Foreign
|
|
|
Constant Currency
|
|
|
|
|
|
|
|
|
Increase
|
|
|
Exchange
|
|
|
% Increase
|
|
|
June 30, 2014
|
|
|
June 29, 2013
|
|
|
(Decrease)
|
|
|
Impact ($)
|
|
|
(Decrease)
|
Canada
|
|
$
|
863.6
|
|
|
|
$
|
953.8
|
|
|
|
(9.5
|
)%
|
|
|
$
|
(67.0
|
)
|
|
|
(2.4
|
)%
|
Europe
|
|
1,067.0
|
|
|
|
992.6
|
|
|
|
7.5
|
%
|
|
|
59.1
|
|
|
|
1.5
|
%
|
MCI
|
|
75.9
|
|
|
|
61.7
|
|
|
|
23.0
|
%
|
|
|
(2.0
|
)
|
|
|
26.3
|
%
|
Corporate
|
|
0.7
|
|
|
|
0.6
|
|
|
|
16.7
|
%
|
|
|
—
|
|
|
|
16.7
|
%
|
Eliminations(1)
|
|
(2.7
|
)
|
|
|
(2.2
|
)
|
|
|
(22.7
|
)%
|
|
|
—
|
|
|
|
(22.7
|
)%
|
Molson Coors Consolidated Total
|
|
$
|
2,004.5
|
|
|
|
$
|
2,006.5
|
|
|
|
(0.1
|
)%
|
|
|
$
|
(9.9
|
)
|
|
|
0.4
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1)
|
|
|
Reflects intercompany sales from Europe to MCI, and the offset is
included within MCI cost of goods sold. These amounts are eliminated
in the consolidated totals.
|
|
|
|
U.S. GAAP: Pretax Income (In millions)
|
|
|
|
|
|
Six Months Ended
|
|
|
|
|
|
|
|
|
Reported %
|
|
|
Foreign
|
|
|
Constant Currency
|
|
|
|
|
|
|
|
|
Increase
|
|
|
Exchange
|
|
|
% Increase
|
|
|
June 30, 2014
|
|
|
June 29, 2013(1)
|
|
|
(Decrease)
|
|
|
Impact ($)
|
|
|
(Decrease)
|
MillerCoors (42% portion)
|
|
$
|
312.9
|
|
|
|
$
|
290.0
|
|
|
|
7.9
|
%
|
|
|
$
|
—
|
|
|
|
7.9
|
%
|
Canada
|
|
209.1
|
|
|
|
157.0
|
|
|
|
33.2
|
%
|
|
|
(14.2
|
)
|
|
|
42.2
|
%
|
Europe
|
|
111.5
|
|
|
|
70.6
|
|
|
|
57.9
|
%
|
|
|
8.0
|
|
|
|
46.6
|
%
|
MCI
|
|
(6.7
|
)
|
|
|
(9.2
|
)
|
|
|
27.2
|
%
|
|
|
0.2
|
|
|
|
25.0
|
%
|
Corp
|
|
(127.9
|
)
|
|
|
(178.4
|
)
|
|
|
28.3
|
%
|
|
|
0.8
|
|
|
|
27.9
|
%
|
Molson Coors Consolidated Total
|
|
$
|
498.9
|
|
|
|
$
|
330.0
|
|
|
|
51.2
|
%
|
|
|
$
|
(5.2
|
)
|
|
|
52.8
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1)
|
|
|
Amounts have been adjusted to reflect the change in interim
accounting for advertising expenses.
|
|
|
|
Non-GAAP: Underlying Pretax Income (In millions)
|
|
|
|
|
|
Six Months Ended
|
|
|
|
|
|
|
|
|
Reported %
|
|
|
Foreign
|
|
|
Constant Currency
|
|
|
|
|
|
|
|
|
Increase
|
|
|
Exchange
|
|
|
% Increase
|
|
|
June 30, 2014
|
|
|
June 29, 2013(1)
|
|
|
(Decrease)
|
|
|
Impact ($)
|
|
|
(Decrease)
|
MillerCoors (42% portion)
|
|
$
|
313.4
|
|
|
|
$
|
290.0
|
|
|
|
8.1
|
%
|
|
|
$
|
—
|
|
|
|
8.1
|
%
|
Canada
|
|
156.2
|
|
|
|
158.6
|
|
|
|
(1.5
|
)%
|
|
|
(8.7
|
)
|
|
|
4.0
|
%
|
Europe
|
|
103.0
|
|
|
|
71.3
|
|
|
|
44.5
|
%
|
|
|
7.7
|
|
|
|
33.7
|
%
|
MCI
|
|
(6.7
|
)
|
|
|
(8.3
|
)
|
|
|
19.3
|
%
|
|
|
0.2
|
|
|
|
16.9
|
%
|
Corp
|
|
(128.6
|
)
|
|
|
(152.4
|
)
|
|
|
15.6
|
%
|
|
|
0.4
|
|
|
|
15.4
|
%
|
Molson Coors Consolidated Total
|
|
$
|
437.3
|
|
|
|
$
|
359.2
|
|
|
|
21.7
|
%
|
|
|
$
|
(0.4
|
)
|
|
|
21.9
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1)
|
|
|
Amounts have been adjusted to reflect the change in interim
accounting for advertising expenses.
|
Constant currency is a non-GAAP measure utilized by Molson Coors
management to measure performance, excluding the impact of foreign
currency movements. As we operate in various foreign countries where the
local currency may strengthen or weaken significantly versus the U.S.
dollar or other currencies used in operations, we utilize a constant
currency measure as an additional metric to evaluate the underlying
performance of each business without consideration of foreign currency
movements. This information is non-GAAP and should be viewed as a
supplement to (not a substitute for) our reported results of operations
under U.S. GAAP. We calculate the impact of foreign exchange on net
sales, pretax income and non-GAAP underlying pretax income using the
following steps:
|
1.
|
|
|
Multiply our current period local currency operating results (that
also include the impact of the comparable prior-period currency
hedging activities) by the weighted average foreign exchange rates
used to translate the financial statements in the comparable prior
year period. The result is the current-period operating results in
U.S. dollars, as if foreign exchange rates had not changed from the
prior-year period.
|
|
|
|
|
|
|
2.
|
|
|
Subtract the result in #1 from the unadjusted current-period
reported operating result in U.S. dollars (U.S. GAAP measure). This
difference reflects the impact of foreign currency translational
gains/losses included in the current-period results.
|
|
|
|
|
|
|
3.
|
|
|
Determine the amount of actual non-operating foreign currency
gains/losses realized as a result of hedging activities and
activities transacted in a currency other than the functional
currency of each legal entity.
|
|
|
|
|
|
|
4.
|
|
|
Add the results of steps 2 and 3 above. This sum equals the total
impact of foreign currency translational gains/losses and realized
gains/losses from foreign currency transactions. This is the value
shown in the “Foreign Exchange $ Impact” column within the table
above.
|
|
|
|
|
|
|
|
|
|
|
|
|
Worldwide Beer Volume
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Molson Coors Brewing Company and Subsidiaries
|
|
|
|
|
|
|
Table 8: Worldwide Beer Volume
|
|
|
|
|
|
|
(In millions of hectoliters)
|
|
|
|
|
|
|
(Unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended
|
|
|
|
|
|
|
June 30, 2014
|
|
|
June 29, 2013
|
|
|
% Change
|
Financial Volume
|
|
8.726
|
|
|
|
8.751
|
|
|
|
(0.3
|
)%
|
Royalty Volume
|
|
0.464
|
|
|
|
0.412
|
|
|
|
12.6
|
%
|
Owned Volume
|
|
9.190
|
|
|
|
9.163
|
|
|
|
0.3
|
%
|
Proportionate Share of Equity Investment Sales to Retail(1)
|
|
7.384
|
|
|
|
7.557
|
|
|
|
(2.3
|
)%
|
Total Worldwide Beer Volume
|
|
16.574
|
|
|
|
16.720
|
|
|
|
(0.9
|
)%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1)
|
|
|
Reflects the addition of Molson Coors Brewing Company's
proportionate share of equity method investments (MillerCoors and
Modelo Molson) sales to retail for the periods presented.
|
|
|
|
|
|
|
|
|
|
|
|
U.S. GAAP Measures
|
|
Molson Coors Brewing Company and Subsidiaries
|
Table 9: Condensed Consolidated Statements of
Operations
|
($ In millions, except per share data)
|
(Unaudited)
|
|
|
|
|
|
|
|
|
Three Months Ended
|
|
|
Six Months Ended
|
|
|
June 30, 2014
|
|
|
June 29, 2013(1)
|
|
|
June 30, 2014
|
|
|
June 29, 2013(1)
|
Volume in hectoliters
|
|
8.726
|
|
|
|
8.751
|
|
|
|
14.639
|
|
|
|
14.501
|
|
Sales
|
|
$
|
1,685.9
|
|
|
|
$
|
1,659.7
|
|
|
|
$
|
2,864.2
|
|
|
|
$
|
2,844.5
|
|
Excise taxes
|
|
(497.4
|
)
|
|
|
(481.7
|
)
|
|
|
(859.7
|
)
|
|
|
(838.0
|
)
|
Net sales
|
|
1,188.5
|
|
|
|
1,178.0
|
|
|
|
2,004.5
|
|
|
|
2,006.5
|
|
Cost of goods sold
|
|
(683.3
|
)
|
|
|
(684.1
|
)
|
|
|
(1,206.5
|
)
|
|
|
(1,231.2
|
)
|
Gross profit
|
|
505.2
|
|
|
|
493.9
|
|
|
|
798.0
|
|
|
|
775.3
|
|
Marketing, general and administrative expenses
|
|
(327.8
|
)
|
|
|
(319.5
|
)
|
|
|
(591.7
|
)
|
|
|
(613.4
|
)
|
Special items, net
|
|
(2.7
|
)
|
|
|
(1.3
|
)
|
|
|
49.8
|
|
|
|
(2.8
|
)
|
Equity income in MillerCoors
|
|
190.1
|
|
|
|
172.6
|
|
|
|
312.9
|
|
|
|
290.0
|
|
Operating income (loss)
|
|
364.8
|
|
|
|
345.7
|
|
|
|
569.0
|
|
|
|
449.1
|
|
Interest income (expense), net
|
|
(36.2
|
)
|
|
|
(41.2
|
)
|
|
|
(71.6
|
)
|
|
|
(116.1
|
)
|
Other income (expense), net
|
|
0.7
|
|
|
|
(7.3
|
)
|
|
|
1.5
|
|
|
|
(3.0
|
)
|
Income (loss) from continuing operations before income taxes
|
|
329.3
|
|
|
|
297.2
|
|
|
|
498.9
|
|
|
|
330.0
|
|
Income tax expense
|
|
(36.4
|
)
|
|
|
(30.0
|
)
|
|
|
(41.2
|
)
|
|
|
(32.0
|
)
|
Net Income (loss) from continuing operations
|
|
292.9
|
|
|
|
267.2
|
|
|
|
457.7
|
|
|
|
298.0
|
|
Income (loss) from discontinued operations, net of tax
|
|
0.2
|
|
|
|
1.7
|
|
|
|
(1.7
|
)
|
|
|
0.8
|
|
Net income (loss) including noncontrolling interests
|
|
293.1
|
|
|
|
268.9
|
|
|
|
456.0
|
|
|
|
298.8
|
|
Net (income) loss attributable to noncontrolling interests
|
|
(2.2
|
)
|
|
|
(1.6
|
)
|
|
|
(1.7
|
)
|
|
|
(3.0
|
)
|
Net income (loss) attributable to MCBC
|
|
$
|
290.9
|
|
|
|
$
|
267.3
|
|
|
|
$
|
454.3
|
|
|
|
$
|
295.8
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic net income (loss) attributable to MCBC per share:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
From continuing operations
|
|
$
|
1.57
|
|
|
|
$
|
1.45
|
|
|
|
$
|
2.47
|
|
|
|
$
|
1.62
|
|
From discontinued operations
|
|
—
|
|
|
|
0.01
|
|
|
|
(0.01
|
)
|
|
|
—
|
|
Basic net income per share
|
|
$
|
1.57
|
|
|
|
$
|
1.46
|
|
|
|
$
|
2.46
|
|
|
|
$
|
1.62
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Diluted net income (loss) attributable to MCBC per share:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
From continuing operations
|
|
$
|
1.56
|
|
|
|
$
|
1.44
|
|
|
|
$
|
2.46
|
|
|
|
$
|
1.61
|
|
From discontinued operations
|
|
—
|
|
|
|
0.01
|
|
|
|
(0.01
|
)
|
|
|
—
|
|
Diluted net income per share
|
|
$
|
1.56
|
|
|
|
$
|
1.45
|
|
|
|
$
|
2.45
|
|
|
|
$
|
1.61
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted average shares - basic
|
|
184.8
|
|
|
|
182.9
|
|
|
|
184.5
|
|
|
|
182.3
|
|
Weighted average shares - diluted
|
|
185.9
|
|
|
|
184.1
|
|
|
|
185.7
|
|
|
|
183.5
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Dividends per share
|
|
$
|
0.37
|
|
|
|
$
|
0.32
|
|
|
|
$
|
0.74
|
|
|
|
$
|
0.64
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Amounts attributable to MCBC
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income (loss) from continuing operations, net of tax
|
|
$
|
290.7
|
|
|
|
$
|
265.6
|
|
|
|
$
|
456.0
|
|
|
|
$
|
295.0
|
|
Income (loss) from discontinued operations, net of tax
|
|
0.2
|
|
|
|
1.7
|
|
|
|
(1.7
|
)
|
|
|
0.8
|
|
Net income (loss) attributable to MCBC
|
|
$
|
290.9
|
|
|
|
$
|
267.3
|
|
|
|
$
|
454.3
|
|
|
|
$
|
295.8
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1)
|
|
|
Amounts have been adjusted to reflect the change in interim
accounting for advertising expenses.
|
|
|
|
|
|
|
|
|
|
|
|
Molson Coors Brewing Company and Subsidiaries
|
Table 10: Canada Segment Results of Operations
|
($ In millions)
|
(Unaudited)
|
|
|
|
|
|
|
|
|
Three Months Ended
|
|
|
Six Months Ended
|
|
|
June 30, 2014
|
|
|
June 29, 2013(1)
|
|
|
June 30, 2014
|
|
|
June 29, 2013(1)
|
Volume in hectoliters
|
|
2.303
|
|
|
|
2.349
|
|
|
|
3.866
|
|
|
|
4.003
|
|
Sales
|
|
$
|
677.1
|
|
|
|
$
|
735.8
|
|
|
|
$
|
1,132.7
|
|
|
|
$
|
1,257.8
|
|
Excise taxes
|
|
(160.6
|
)
|
|
|
(177.6
|
)
|
|
|
(269.1
|
)
|
|
|
(304.0
|
)
|
Net sales
|
|
516.5
|
|
|
|
558.2
|
|
|
|
863.6
|
|
|
|
953.8
|
|
Cost of goods sold
|
|
(285.2
|
)
|
|
|
(308.4
|
)
|
|
|
(501.9
|
)
|
|
|
(557.5
|
)
|
Gross profit
|
|
231.3
|
|
|
|
249.8
|
|
|
|
361.7
|
|
|
|
396.3
|
|
Marketing, general and administrative expenses
|
|
(111.9
|
)
|
|
|
(120.5
|
)
|
|
|
(207.9
|
)
|
|
|
(237.5
|
)
|
Special items, net
|
|
(0.1
|
)
|
|
|
(0.7
|
)
|
|
|
52.9
|
|
|
|
(2.8
|
)
|
Operating income (loss)
|
|
119.3
|
|
|
|
128.6
|
|
|
|
206.7
|
|
|
|
156.0
|
|
Other income (expense), net
|
|
1.5
|
|
|
|
—
|
|
|
|
2.4
|
|
|
|
1.0
|
|
Income (loss) from continuing operations before income taxes
|
|
$
|
120.8
|
|
|
|
$
|
128.6
|
|
|
|
$
|
209.1
|
|
|
|
$
|
157.0
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1)
|
|
|
Amounts have been adjusted to reflect the change in interim
accounting for advertising expenses.
|
|
|
|
|
|
|
|
|
|
|
|
Molson Coors Brewing Company and Subsidiaries
|
Table 11: Europe Results of Operations
|
($ In millions)
|
(Unaudited)
|
|
|
|
|
|
|
|
|
Three Months Ended
|
|
|
Six Months Ended
|
|
|
June 30, 2014
|
|
|
June 29, 2013(1)
|
|
|
June 30, 2014
|
|
|
June 29, 2013(1)
|
Volume in hectoliters(2)
|
|
6.061
|
|
|
|
6.138
|
|
|
|
10.146
|
|
|
|
10.006
|
|
Sales(2)
|
|
$
|
956.4
|
|
|
|
$
|
882.3
|
|
|
|
$
|
1,642.2
|
|
|
|
$
|
1,514.7
|
|
Excise taxes
|
|
(327.0
|
)
|
|
|
(296.1
|
)
|
|
|
(575.2
|
)
|
|
|
(522.1
|
)
|
Net sales(2)
|
|
629.4
|
|
|
|
586.2
|
|
|
|
1,067.0
|
|
|
|
992.6
|
|
Cost of goods sold
|
|
(373.5
|
)
|
|
|
(354.6
|
)
|
|
|
(659.5
|
)
|
|
|
(635.8
|
)
|
Gross profit
|
|
255.9
|
|
|
|
231.6
|
|
|
|
407.5
|
|
|
|
356.8
|
|
Marketing, general and administrative expenses
|
|
(169.6
|
)
|
|
|
(156.0
|
)
|
|
|
(295.8
|
)
|
|
|
(286.2
|
)
|
Special items, net
|
|
(2.3
|
)
|
|
|
0.3
|
|
|
|
(2.8
|
)
|
|
|
1.2
|
|
Operating income (loss)
|
|
84.0
|
|
|
|
75.9
|
|
|
|
108.9
|
|
|
|
71.8
|
|
Interest income, net
|
|
1.2
|
|
|
|
1.2
|
|
|
|
2.3
|
|
|
|
2.4
|
|
Other income (expense), net
|
|
(0.7
|
)
|
|
|
(1.3
|
)
|
|
|
0.3
|
|
|
|
(3.6
|
)
|
Income (loss) from continuing operations before income taxes
|
|
$
|
84.5
|
|
|
|
$
|
75.8
|
|
|
|
$
|
111.5
|
|
|
|
$
|
70.6
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1)
|
|
|
Amounts have been adjusted to reflect the change in interim
accounting for advertising expenses.
|
|
|
|
|
|
|
(2)
|
|
|
Reflects gross segment sales and for Q2 2014 includes intercompany
sales to MCI of 0.016 million hectoliters and $1.5 million of net
sales. Q2 2013 includes intercompany sales to MCI of 0.016 million
hectoliters and $1.4 million of net sales. The first half of 2014
includes intercompany sales to MCI of 0.029 million hectoliters and
$2.7 million of net sales. The first half of 2013 includes
intercompany sales to MCI of 0.037 million hectoliters and $2.2
million of net sales. The offset is included within MCI cost of
goods sold. These amounts are eliminated in the consolidated totals.
|
|
|
|
|
|
|
|
|
|
|
|
Molson Coors Brewing Company and Subsidiaries
|
Table 12: Molson Coors International Results of
Operations
|
($ In millions)
|
(Unaudited)
|
|
|
|
|
|
|
|
|
Three Months Ended
|
|
|
Six Months Ended
|
|
|
June 30, 2014
|
|
|
June 29, 2013(1)
|
|
|
June 30, 2014
|
|
|
June 29, 2013(1)
|
Volume in hectoliters
|
|
0.378
|
|
|
|
0.280
|
|
|
|
0.656
|
|
|
|
0.529
|
|
Sales
|
|
$
|
53.5
|
|
|
|
$
|
42.7
|
|
|
|
$
|
91.3
|
|
|
|
$
|
73.6
|
|
Excise taxes
|
|
(9.8
|
)
|
|
|
(8.0
|
)
|
|
|
(15.4
|
)
|
|
|
(11.9
|
)
|
Net sales
|
|
43.7
|
|
|
|
34.7
|
|
|
|
75.9
|
|
|
|
61.7
|
|
Cost of goods sold(2)
|
|
(27.4
|
)
|
|
|
(21.7
|
)
|
|
|
(48.2
|
)
|
|
|
(39.2
|
)
|
Gross profit
|
|
16.3
|
|
|
|
13.0
|
|
|
|
27.7
|
|
|
|
22.5
|
|
Marketing, general and administrative expenses
|
|
(20.0
|
)
|
|
|
(16.2
|
)
|
|
|
(34.4
|
)
|
|
|
(30.9
|
)
|
Special items, net
|
|
—
|
|
|
|
(0.9
|
)
|
|
|
—
|
|
|
|
(0.9
|
)
|
Operating income (loss)
|
|
(3.7
|
)
|
|
|
(4.1
|
)
|
|
|
(6.7
|
)
|
|
|
(9.3
|
)
|
Other income (expense), net
|
|
—
|
|
|
|
0.1
|
|
|
|
—
|
|
|
|
0.1
|
|
Income (loss) from continuing operations before income taxes
|
|
$
|
(3.7
|
)
|
|
|
$
|
(4.0
|
)
|
|
|
$
|
(6.7
|
)
|
|
|
$
|
(9.2
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1)
|
|
|
Amounts have been adjusted to reflect the change in interim
accounting for advertising expenses.
|
|
|
|
|
|
|
(2)
|
|
|
Reflects gross segment amounts and for Q2 2014 and Q2 2013 includes
intercompany cost of goods sold from Europe of $1.5 million and $1.4
million, respectively. The first half of 2014 and 2013 includes
intercompany cost of goods sold from Europe of $2.7 million and $2.2
million, respectively. The offset is included within Europe net
sales. These amounts are eliminated in the consolidated totals.
|
|
|
|
|
|
|
|
|
|
|
|
Molson Coors Brewing Company and Subsidiaries
|
Table 13: Corporate Results of Operations
|
($ In millions)
|
(Unaudited)
|
|
|
|
|
|
|
|
|
Three Months Ended
|
|
|
Six Months Ended
|
|
|
June 30, 2014
|
|
|
June 29, 2013
|
|
|
June 30, 2014
|
|
|
June 29, 2013
|
Volume in hectoliters
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
Sales
|
|
$
|
0.4
|
|
|
|
$
|
0.3
|
|
|
|
$
|
0.7
|
|
|
|
$
|
0.6
|
|
Excise taxes
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
Net sales
|
|
0.4
|
|
|
|
0.3
|
|
|
|
0.7
|
|
|
|
0.6
|
|
Cost of goods sold
|
|
1.3
|
|
|
|
(0.8
|
)
|
|
|
0.4
|
|
|
|
(0.9
|
)
|
Gross profit
|
|
1.7
|
|
|
|
(0.5
|
)
|
|
|
1.1
|
|
|
|
(0.3
|
)
|
Marketing, general and administrative expenses
|
|
(26.3
|
)
|
|
|
(26.8
|
)
|
|
|
(53.6
|
)
|
|
|
(58.8
|
)
|
Special items, net
|
|
(0.3
|
)
|
|
|
—
|
|
|
|
(0.3
|
)
|
|
|
(0.3
|
)
|
Operating income (loss)
|
|
(24.9
|
)
|
|
|
(27.3
|
)
|
|
|
(52.8
|
)
|
|
|
(59.4
|
)
|
Interest expense, net
|
|
(37.4
|
)
|
|
|
(42.4
|
)
|
|
|
(73.9
|
)
|
|
|
(118.5
|
)
|
Other income (expense), net
|
|
(0.1
|
)
|
|
|
(6.1
|
)
|
|
|
(1.2
|
)
|
|
|
(0.5
|
)
|
Income (loss) from continuing operations before income taxes
|
|
$
|
(62.4
|
)
|
|
|
$
|
(75.8
|
)
|
|
|
$
|
(127.9
|
)
|
|
|
$
|
(178.4
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
MillerCoors LLC(1)
|
Table 14: Results of Operations
|
($ In millions)
|
(Unaudited)
|
|
|
|
|
|
|
|
|
Three Months Ended
|
|
|
Six Months Ended
|
|
|
June 30, 2014
|
|
|
June 30, 2013
|
|
|
June 30, 2014
|
|
|
June 30, 2013
|
Volume in hectoliters(2)
|
|
20.327
|
|
|
|
20.512
|
|
|
|
36.815
|
|
|
|
37.544
|
|
Sales
|
|
$
|
2,526.9
|
|
|
|
$
|
2,484.4
|
|
|
|
$
|
4,577.0
|
|
|
|
$
|
4,541.1
|
|
Excise taxes
|
|
(320.2
|
)
|
|
|
(325.4
|
)
|
|
|
(579.9
|
)
|
|
|
(593.8
|
)
|
Net sales
|
|
2,206.7
|
|
|
|
2,159.0
|
|
|
|
3,997.1
|
|
|
|
3,947.3
|
|
Cost of goods sold
|
|
(1,282.4
|
)
|
|
|
(1,270.1
|
)
|
|
|
(2,376.5
|
)
|
|
|
(2,358.8
|
)
|
Gross profit
|
|
924.3
|
|
|
|
888.9
|
|
|
|
1,620.6
|
|
|
|
1,588.5
|
|
Marketing, general and administrative expenses
|
|
(474.0
|
)
|
|
|
(471.0
|
)
|
|
|
(872.1
|
)
|
|
|
(896.1
|
)
|
Special items, net
|
|
(0.5
|
)
|
|
|
—
|
|
|
|
(1.2
|
)
|
|
|
—
|
|
Operating income
|
|
449.8
|
|
|
|
417.9
|
|
|
|
747.3
|
|
|
|
692.4
|
|
Interest income (expense), net
|
|
(0.3
|
)
|
|
|
(0.4
|
)
|
|
|
(0.6
|
)
|
|
|
(0.9
|
)
|
Other income (expense), net
|
|
2.9
|
|
|
|
0.5
|
|
|
|
3.2
|
|
|
|
1.3
|
|
Income before income taxes
|
|
452.4
|
|
|
|
418.0
|
|
|
|
749.9
|
|
|
|
692.8
|
|
Income tax expense
|
|
(1.4
|
)
|
|
|
(1.3
|
)
|
|
|
(3.3
|
)
|
|
|
(1.7
|
)
|
Net income
|
|
451.0
|
|
|
|
416.7
|
|
|
|
746.6
|
|
|
|
691.1
|
|
Less: Net income attributable to noncontrolling interests
|
|
(5.8
|
)
|
|
|
(4.0
|
)
|
|
|
(10.2
|
)
|
|
|
(6.5
|
)
|
Net income attributable to MillerCoors
|
|
$
|
445.2
|
|
|
|
$
|
412.7
|
|
|
|
$
|
736.4
|
|
|
|
$
|
684.6
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1)
|
|
|
Economic ownership of MillerCoors is 58% held by SABMiller and 42%
held by Molson Coors. See Table 6 for a reconciliation from Net
Income Attributable to MillerCoors to Molson Coors Equity Income in
MillerCoors, and to U.S. Segment Underlying Pretax Income (Non-GAAP).
|
|
|
|
|
|
|
(2)
|
|
|
Includes contract brewing and company-owned-distributor sales, which
are excluded from our worldwide beer volume calculation.
|
|
|
|
|
|
|
|
|
Molson Coors Brewing Company and Subsidiaries
|
Table 15: Condensed Consolidated Balance Sheets
|
($ In millions, except par value)
|
(Unaudited)
|
|
|
|
|
|
As of
|
|
|
June 30, 2014
|
|
|
December 31, 2013
|
Assets
|
|
|
|
|
|
|
|
Current assets:
|
|
|
|
|
|
|
|
Cash and cash equivalents
|
|
$
|
506.0
|
|
|
|
$
|
442.3
|
|
Accounts receivable, net
|
|
730.9
|
|
|
|
603.6
|
|
Other receivables, net
|
|
141.5
|
|
|
|
124.4
|
|
Inventories:
|
|
|
|
|
|
|
|
Finished
|
|
189.0
|
|
|
|
133.2
|
|
In process
|
|
28.2
|
|
|
|
23.3
|
|
Raw materials
|
|
42.4
|
|
|
|
36.9
|
|
Packaging materials
|
|
17.7
|
|
|
|
11.9
|
|
Total inventories
|
|
277.3
|
|
|
|
205.3
|
|
Other current assets, net
|
|
119.3
|
|
|
|
111.7
|
|
Deferred tax assets
|
|
25.3
|
|
|
|
50.4
|
|
Total current assets
|
|
1,800.3
|
|
|
|
1,537.7
|
|
Properties, net
|
|
1,974.0
|
|
|
|
1,970.1
|
|
Goodwill
|
|
2,440.7
|
|
|
|
2,418.7
|
|
Other intangibles, net
|
|
6,777.2
|
|
|
|
6,825.1
|
|
Investment in MillerCoors
|
|
2,598.6
|
|
|
|
2,506.5
|
|
Deferred tax assets
|
|
16.5
|
|
|
|
38.3
|
|
Notes receivable, net
|
|
23.9
|
|
|
|
23.6
|
|
Other assets
|
|
241.8
|
|
|
|
260.1
|
|
Total assets
|
|
$
|
15,873.0
|
|
|
|
$
|
15,580.1
|
|
Liabilities and equity
|
|
|
|
|
|
|
|
Current liabilities:
|
|
|
|
|
|
|
|
Accounts payable and other current liabilities
|
|
$
|
1,514.7
|
|
|
|
$
|
1,429.6
|
|
Deferred tax liabilities
|
|
138.1
|
|
|
|
138.1
|
|
Current portion of long-term debt and short-term borrowings
|
|
451.6
|
|
|
|
586.9
|
|
Discontinued operations
|
|
7.3
|
|
|
|
6.8
|
|
Total current liabilities
|
|
2,111.7
|
|
|
|
2,161.4
|
|
Long-term debt
|
|
3,208.6
|
|
|
|
3,213.0
|
|
Pension and post-retirement benefits
|
|
443.3
|
|
|
|
462.6
|
|
Deferred tax liabilities
|
|
977.4
|
|
|
|
911.4
|
|
Unrecognized tax benefits
|
|
61.7
|
|
|
|
107.1
|
|
Other liabilities
|
|
66.7
|
|
|
|
77.2
|
|
Discontinued operations
|
|
18.5
|
|
|
|
17.3
|
|
Total liabilities
|
|
6,887.9
|
|
|
|
6,950.0
|
|
Molson Coors Brewing Company stockholders' equity
|
|
|
|
|
|
|
|
Capital stock:
|
|
|
|
|
|
|
|
Preferred stock, no par value (authorized: 25.0 shares; none issued)
|
|
—
|
|
|
|
—
|
|
Class A common stock, $0.01 par value per share (authorized: 500.0
shares; issued and outstanding: 2.6 shares and 2.6 shares,
respectively)
|
|
—
|
|
|
|
—
|
|
Class B common stock, $0.01 par value per share (authorized: 500.0
shares; issued: 168.2 shares and 167.2 shares, respectively)
|
|
1.7
|
|
|
|
1.7
|
|
Class A exchangeable shares, no par value (issued and outstanding:
2.9 shares and 2.9 shares, respectively)
|
|
108.5
|
|
|
|
108.5
|
|
Class B exchangeable shares, no par value (issued and outstanding:
18.8 shares and 19.0 shares, respectively)
|
|
709.6
|
|
|
|
714.1
|
|
Paid-in capital
|
|
3,790.3
|
|
|
|
3,747.6
|
|
Retained earnings
|
|
4,517.1
|
|
|
|
4,199.5
|
|
Accumulated other comprehensive income (loss)
|
|
155.9
|
|
|
|
154.9
|
|
Class B common stock held in treasury at cost (7.5 shares and 7.5
shares, respectively)
|
|
(321.1
|
)
|
|
|
(321.1
|
)
|
Total Molson Coors Brewing Company stockholders' equity
|
|
8,962.0
|
|
|
|
8,605.2
|
|
Noncontrolling interests
|
|
23.1
|
|
|
|
24.9
|
|
Total equity
|
|
8,985.1
|
|
|
|
8,630.1
|
|
Total liabilities and equity
|
|
$
|
15,873.0
|
|
|
|
$
|
15,580.1
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Molson Coors Brewing Company and Subsidiaries
|
Table 16: Condensed Consolidated Statements of
Cash Flows
|
($ In millions)
|
(Unaudited)
|
|
|
|
|
|
Six Months Ended
|
|
|
June 30, 2014
|
|
|
June 29, 2013
|
Cash flows from operating activities:
|
|
|
|
|
|
|
|
Net income (loss) including noncontrolling interests
|
|
$
|
456.0
|
|
|
|
$
|
298.8
|
|
Adjustments to reconcile net income to net cash provided by
operating activities:
|
|
|
|
|
|
|
|
Depreciation and amortization
|
|
158.4
|
|
|
|
160.9
|
|
Amortization of debt issuance costs and discounts
|
|
4.2
|
|
|
|
14.2
|
|
Share-based compensation
|
|
12.1
|
|
|
|
15.4
|
|
Loss (gain) on sale or impairment of properties and other assets, net
|
|
3.0
|
|
|
|
6.3
|
|
Deferred income taxes
|
|
9.8
|
|
|
|
13.1
|
|
Equity income in MillerCoors
|
|
(312.9
|
)
|
|
|
(290.0
|
)
|
Distributions from MillerCoors
|
|
312.9
|
|
|
|
290.0
|
|
Equity in net income of other unconsolidated affiliates
|
|
(2.7
|
)
|
|
|
(7.8
|
)
|
Distributions from other unconsolidated affiliates
|
|
11.1
|
|
|
|
13.0
|
|
Excess tax benefits from share-based compensation
|
|
(3.2
|
)
|
|
|
(5.4
|
)
|
Unrealized (gain) loss on foreign currency fluctuations and
derivative instruments, net
|
|
(3.2
|
)
|
|
|
28.9
|
|
Change in current assets and liabilities and other
|
|
(71.2
|
)
|
|
|
54.4
|
|
(Gain) loss from discontinued operations
|
|
1.7
|
|
|
|
(0.8
|
)
|
Net cash provided by operating activities
|
|
576.0
|
|
|
|
591.0
|
|
Cash flows from investing activities:
|
|
|
|
|
|
|
|
Additions to properties
|
|
(126.4
|
)
|
|
|
(149.7
|
)
|
Proceeds from sales of properties and other assets
|
|
4.1
|
|
|
|
4.9
|
|
Proceeds from sale of business
|
|
—
|
|
|
|
2.0
|
|
Investment in MillerCoors
|
|
(764.4
|
)
|
|
|
(615.3
|
)
|
Return of capital from MillerCoors
|
|
691.9
|
|
|
|
515.2
|
|
Investment in and advances to an unconsolidated affiliate
|
|
—
|
|
|
|
(2.8
|
)
|
Loan repayments
|
|
4.0
|
|
|
|
4.5
|
|
Loan advances
|
|
(3.3
|
)
|
|
|
(3.7
|
)
|
Net cash used in investing activities
|
|
(194.1
|
)
|
|
|
(244.9
|
)
|
Cash flows from financing activities:
|
|
|
|
|
|
|
|
Exercise of stock options under equity compensation plans
|
|
27.7
|
|
|
|
63.1
|
|
Excess tax benefits from share-based compensation
|
|
3.2
|
|
|
|
5.4
|
|
Dividends paid
|
|
(136.7
|
)
|
|
|
(116.8
|
)
|
Dividends paid to noncontrolling interests holders
|
|
(2.4
|
)
|
|
|
(1.2
|
)
|
Payments for purchase of noncontrolling interest
|
|
(0.4
|
)
|
|
|
(0.2
|
)
|
Debt issuance costs
|
|
(1.8
|
)
|
|
|
(0.2
|
)
|
Payments on long-term debt and capital lease obligations
|
|
(62.2
|
)
|
|
|
(52.4
|
)
|
Proceeds from short-term borrowings
|
|
20.9
|
|
|
|
9.3
|
|
Payments on short-term borrowings
|
|
(23.3
|
)
|
|
|
(15.1
|
)
|
Payments on settlement of derivative instruments
|
|
(65.2
|
)
|
|
|
(35.1
|
)
|
Net proceeds from (payments on) revolving credit facilities and
commercial paper
|
|
(214.3
|
)
|
|
|
(2.9
|
)
|
Change in overdraft balances and other
|
|
131.4
|
|
|
|
2.0
|
|
Net cash used in financing activities
|
|
(323.1
|
)
|
|
|
(144.1
|
)
|
Cash and cash equivalents:
|
|
|
|
|
|
|
|
Net increase (decrease) in cash and cash equivalents
|
|
58.8
|
|
|
|
202.0
|
|
Effect of foreign exchange rate changes on cash and cash equivalents
|
|
4.9
|
|
|
|
(24.4
|
)
|
Balance at beginning of year
|
|
442.3
|
|
|
|
624.0
|
|
Balance at end of period
|
|
$
|
506.0
|
|
|
|
$
|
801.6
|
|
|
|
|
|
|
|
|
|
|
|
Copyright Business Wire 2014