Earnings Per Share

Basic earnings per share ("EPS") was computed using the weighted-average number of shares of common stock outstanding during the period. Diluted EPS includes the additional dilutive effect of our potentially dilutive securities, which includes stock options, SOSARs, RSUs, PUs, PSUs and DSUs. The dilutive effects of our potentially dilutive securities are calculated using the treasury stock method. The following summarizes the effect of dilutive securities on diluted EPS:



	Three Months Ended					Nine Months Ended
	September 30, 2014			September 28, 2013⁽¹⁾		September 30, 2014			September 28, 2013⁽¹⁾
	(In millions, except per share amounts)
Amounts attributable to MCBC
Net income (loss) from continuing operations	$	(35.7	)	$	133.4	$	420.3		$	428.4
Income (loss) from discontinued operations, net of tax	1.3			0.9		(0.4		)	1.7
Net income (loss) attributable to Molson Coors Brewing Company	$	(34.4	)	$	134.3	$	419.9		$	430.1
Weighted-average shares for basic EPS	185.1			183.5		184.7			182.7
Effect of dilutive securities:
Stock options and SOSARs	—			0.6		0.7			0.7
RSUs, PSUs, PUs and DSUs	—			0.5		0.5			0.5
Weighted-average shares for diluted EPS	185.1			184.6		185.9			183.9
Basic net income (loss) attributable to Molson Coors Brewing Company per share⁽²⁾:
From continuing operations	$	(0.20	)	$	0.73	$	2.27		$	2.34
From discontinued operations	0.01			0.01		—			0.01
Basic net income (loss) attributable to Molson Coors Brewing Company per share	$	(0.19	)	$	0.74	$	2.27		$	2.35
Diluted net income (loss) attributable to Molson Coors Brewing Company per share⁽²⁾:
From continuing operations	$	(0.20	)	$	0.72	$	2.26		$	2.33
From discontinued operations	0.01			0.01		—			0.01
Diluted net income (loss) attributable to Molson Coors Brewing Company per share	$	(0.19	)	$	0.73	$	2.26		$	2.34
Dividends declared and paid per share	$	0.37		$	0.32	$	1.11		$	0.96


(1)	Amounts have been adjusted to reflect the change in interim accounting for advertising expenses. See Note 1, "Basis of Presentation and Summary of Significant Accounting Policies" for further discussion.

(2)

Due to the anti-dilutive effect resulting from the reported net loss from continuing operations, the impact of potentially dilutive securities has been omitted from the quarterly calculation of weighted-average shares for diluted EPS for the third quarter of 2014. The impact of these potentially dilutive securities has been included in the calculation of weighted-average shares for diluted EPS for the nine months ended September 30, 2014.

Additionally, the sum of the quarterly net income per share amounts may not agree to the full year net income per share amounts. We calculate net income per share based on the weighted average number of outstanding shares during the period for each reporting period presented. The average number of shares fluctuates throughout the year and can therefore produce a full year result that does not agree to the sum of the individual quarters.

The following anti-dilutive securities were excluded from the computation of the effect of dilutive securities on diluted earnings per share:



	Three Months Ended		Nine Months Ended
	September 30, 2014	September 28, 2013	September 30, 2014	September 28, 2013
	(In millions)
Stock options, SOSARs and RSUs	1.2	0.1	0.1	0.2
Total weighted-average anti-dilutive securities	1.2	0.1	0.1	0.2

Convertible Notes

In June 2007, we issued $575 million Convertible Senior Notes ("$575 million convertible bonds") due July 2013. On July 30, 2013, these notes matured and were repaid for their face value of $575 million. The required premium payment was settled in cash and entirely offset by the cash proceeds received from the settlement of the call options we purchased in 2007 related to these notes. As a result, these notes and related call options did not impact our shares outstanding. Additionally, the potential impacts of these notes and related call options had no impact on diluted income per share for any period in which they were outstanding. Simultaneously with the issuance of these notes, we issued warrants which began expiring in December 2013 and the final warrants expired February 6, 2014, all of which were out-of-the-money upon settlement. The potential impacts of these warrants had no impact on diluted income per share and were excluded from the computation of the effect of dilutive securities on diluted earnings per share for all periods during which they were outstanding.

In June 2012, we issued a €500 million Zero Coupon Senior Unsecured Convertible Note ("€500 million convertible note"). On August 13, 2013, the embedded put option was exercised and we subsequently settled the note using cash. See Note 11, "Debt" for further discussion. As a result, the €500 million convertible note did not impact our shares outstanding and was excluded from the computation of the effect of diluted securities on diluted earnings per share for all periods presented.