MOLSON COORS BREWING CO | 2013 | FY | 3

Accumulated Other Comprehensive Income (Loss)
 
MCBC shareholders
 
Foreign
currency
translation
adjustments
 
Gain (loss) on
derivative
instruments
 
Pension and
Postretirement
Benefit
adjustments
 
Equity Method
Investments
 
Accumulated
other
comprehensive
income (loss)
 
(In millions)
As of December 25, 2010
$
906.3

 
$
(11.6
)
 
$
(497.4
)
 
$
(226.2
)
 
$
171.1

Foreign currency translation adjustments
(49.6
)
 
—

 
—

 
—

 
(49.6
)
Unrealized gain (loss) on derivative instruments
—

 
(2.0
)
 
—

 
—

 
(2.0
)
Reclassification of derivative losses to income(1)
—

 
14.9

 
—

 
—

 
14.9

Pension and other postretirement benefit adjustments
—

 
—

 
(255.8
)
 
—

 
(255.8
)
Amortization of net prior service costs and net actuarial losses to income(1)
—

 
—

 
13.8

 
—

 
13.8

Ownership share of unconsolidated subsidiaries' other comprehensive income (loss)
—

 
—

 
—

 
(106.2
)
 
(106.2
)
Tax benefit (expense)
(18.1
)
 
0.4

 
62.6

 
39.2

 
84.1

As of December 31, 2011
$
838.6

 
$
1.7

 
$
(676.8
)
 
$
(293.2
)
 
$
(129.7
)
Foreign currency translation adjustments
340.3

 
(1.6
)
 
(2.4
)
 
—

 
336.3

Unrealized gain (loss) on derivative instruments
—

 
(37.7
)
 
—

 
—

 
(37.7
)
Reclassification of derivative losses to income(1)
—

 
10.2

 
—

 
—

 
10.2

Pension and other postretirement benefit adjustments
—

 
—

 
(176.5
)
 
—

 
(176.5
)
Amortization of net prior service costs and net actuarial losses to income(1)
—

 
—

 
36.3

 
—

 
36.3

Ownership share of unconsolidated subsidiaries' other comprehensive income (loss)
—

 
—

 
—

 
(79.5
)
 
(79.5
)
Reclassification from investment in MillerCoors(2)
—

 
—

 
—

 
(97.9
)
 
(97.9
)
Tax benefit (expense)
8.6

 
9.7

 
(24.7
)
 
72.6

 
66.2

As of December 29, 2012
$
1,187.5

 
$
(17.7
)
 
$
(844.1
)
 
$
(398.0
)
 
$
(72.3
)
Foreign currency translation adjustments
(177.7
)
 
—

 
0.7

 
—

 
(177.0
)
Unrealized gain (loss) on derivative instruments
—

 
58.6

 
—

 
—

 
58.6

Reclassification of derivative losses to income(1)
—

 
(5.5
)
 
—

 
—

 
(5.5
)
Pension and other postretirement benefit adjustments
—

 
—

 
278.0

 
—

 
278.0

Amortization of net prior service costs and net actuarial losses to income(1)
—

 
—

 
53.7

 
—

 
53.7

Ownership share of unconsolidated subsidiaries' other comprehensive income (loss)
—

 
—

 
—

 
114.5

 
114.5

Reclassification from investment in MillerCoors(2)
—

 
—

 
—

 
34.3

 
34.3

Tax benefit (expense)
(30.7
)
 
(20.8
)
 
(44.6
)
 
(33.3
)
 
(129.4
)
As of December 31, 2013
$
979.1

 
$
14.6

 
$
(556.3
)
 
$
(282.5
)
 
$
154.9

(1)
The tax benefit (expense) recognized on reclassification of derivative gains and losses to income was $(2.3) million, $1.6 million and $4.5 million for the fiscal years 2013, 2012 and 2011, respectively. The tax benefit recognized on reclassification of net prior service costs and net actuarial gains and losses to income was $7.3 million, $5.4 million and $3.6 million for the fiscal years 2013, 2012 and 2011, respectively.
(2)
During the first quarter of 2013, we recorded a tax adjustment related to the reclassification of amounts from the investment in MillerCoors to AOCI that was recorded in the fourth quarter of 2012 to reflect our proportional share of MillerCoors AOCI at formation. We made this reclassification in 2012 as we believe the new presentation provides improved transparency of our share of MillerCoors AOCI. This tax adjustment, which should have been made in 2012 with the reclassification, was not material to either the current or prior period financial statements taken as a whole and therefore the adjustment was recorded in 2013 and prior periods do not reflect the adjustment.
We have significant levels of net assets denominated in currencies other than the USD due to our operations in foreign countries, and therefore recognize OCI gains and/or losses when those items are translated to USD. The foreign currency translation losses recognized during 2013 are largely due to the weakening of the CAD slightly offset by the strengthening of the GBP and certain currencies of our Central Europe operations versus the USD, compared to the strengthening of the CAD, GBP and currencies of our Central European operations in 2012, and the weakening of both the CAD and GBP in 2011. OCI gains/losses related to our pension and OPEB plans are due to changes in our plan obligations, driven by actuarial gains/losses related to fluctuations in discount rate and other actuarial assumptions. OCI associated with our equity method investments is primarily related to our 42% share of the MillerCoors OCI activity (unrealized gains and losses on derivative instruments and pension obligations) and changes to BRI and BDL pension obligations.
Reclassifications from AOCI to income:
 
 
For the year ended
 
 
 
 
December 31, 2013
 
 
 
 
Reclassifications from AOCI
 
Location of gain (loss)
recognized in income
 
 
(In millions)
 
 
Gain/(loss) on cash flow hedges:
 
 
 
 
Forward starting interest rate swaps
 
$
(1.6
)
 
Interest expense, net
Foreign currency forwards
 
2.2

 
Other income (expense), net
Foreign currency forwards
 
5.2

 
Cost of goods sold
Commodity swaps
 
(0.3
)
 
Cost of goods sold
Total income (loss) reclassified, before tax
 
5.5

 
 
Income tax benefit (expense)
 
(2.3
)
 
 
Net income (loss) reclassified, net of tax
 
$
3.2

 
 
 
 
 
 
 
Amortization of defined benefit pension and other postretirement benefit plan items:
 
 
 
 
Prior service benefit (cost)
 
$
2.8

 
(1)
Net actuarial gain (loss)
 
(56.5
)
 
(1)
Total income (loss) reclassified, before tax
 
(53.7
)
 
 
Income tax benefit (expense)
 
7.3

 
 
Net income (loss) reclassified, net of tax
 
$
(46.4
)
 
 
 
 
 
 
 
Total income (loss) reclassified, net of tax
 
$
(43.2
)
 
 
(1)
These components of AOCI are included in the computation of net periodic pension and other postretirement benefit cost. See Note 16, "Employee Retirement Plans and Postretirement Benefits" for additional details.

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