strategic-management

224 AMIT J. SHAH
EXHIBIT 2 Molson Coors Income Statement (in millions, except for share data)
December 28,
For the Years Ended
December 30, December 31,
2008 2007 2006
Sales $ 6,651.8 $ 8,319.7 $ 7,901.6
Excise taxes (1,877.5) (2,129.1) (2,056.6)
Net sales 4,774.3 6,190.6 5,845.0
Cost of goods sold (2,840.8) (3,702.9) (3,481.1)
Gross profit 1,933.5 2,487.7 2,363.9
Marketing, general and administrative expenses (1,333.2) (1,734.4) (1,705.4)
Special items, net (133.9) (112.2) (77.4)
Equity income in MillerCoors 155.6 — —
Operating income
Other (expense) income, net
622.0 641.1 581.1
Interest expense (103.3) (126.5) (143.0)
Interest income 17.3 26.6 16.3
Debt extinguishment costs (12.4) (24.5) —
Other (expense) income, net (8.4) 17.7 17.7
Total other expense
Income from continuing operations before income
(106.8) (106.7) (109.0)
taxes and minority interests 515.2 534.4 472.1
Income tax expense
Income from continuing operations before
(102.9) (4.2) (82.4)
minority interests 412.3 530.2 389.7
Minority interests in net income of consolidated entities (12.2) (15.3) (16.1)
Income from continuing operations 400.1 514.9 373.6
Loss from discontinued operations, net of tax (12.1) (17.7) (12.6)
Net income
Other comprehensive (loss) income, net of tax:
$ 388.0 $ 497.2 $ 361.0
Foreign currency translation adjustments (1,281.0) 795.0 157.2
Unrealized gain (loss) on derivative instruments 49.0 (3.4) 18.4
Realized gain (loss) reclassified to net income 3.9 2.9 (4.6)
Ownership share of MillerCoors other comprehensive loss (211.2) — —
Pension and other postretirement benefit adjustments (196.9) (6.6) 131.1
Comprehensive (loss) income $ (1,248.2) $ 1,285.1 $ 63.1
Diluted net income per share $ 2.09 $ 2.74 $ 2.08
Weighted average shares—basic 182.6 178.7 172.2
Weighted average shares—diluted 185.5 181.4 173.3
Source: Molson Coors, Annual Report (2009).
The executive offices and headquarters of Molson Coors are located in the metropolitan
areas of Denver, Colorado, and Montreal, Quebec. The Canadian operational headquarters
will be in Toronto, Ontario, and the UK headquarters are in Burton-on-Trent, Staffordshire.
Financial Issues
Exhibits 2 and 3 present Molson Coors’ annual financial statements. Note in Exhibit 2 the
dramatic revenue and profit decline in 2008 versus 2007. On the 2008 balance sheet in
Exhibit 3, note the company still carries over $1.8 billion in long-term debt.