Table of Contents International Segment During the first half of 2018, we decided to formally exit our business in China and, as such, have incurred special charges. See Part II—Item 8 Financial Statements and Supplementary Data,  Note 7, "Special Items"  of the Notes for further detail. As a result of the Acquisition, the  Miller  brands were added to our International segment's portfolio beginning October 11, 2016. Additionally, as a result of the Acquisition, effective January 1, 2017, European markets including Sweden, Spain, Germany, Ukraine and Russia, which were previously reported as part of our International segment, are reported within our Europe segment while the results of the MillerCoors Puerto Rico business, which were previously included as part of the U.S. segment, are reported within the International segment. On April 5, 2016, the government of the state of Bihar implemented a complete prohibition of the sale and consumption of all forms of alcohol. As a result of this ban, our Molson Coors Cobra India business is currently not operating. This ban does not impact the rest of our business in India outside of the state of Bihar. As a result, we recorded an aggregate impairment charge of $30.8 million within special items during the second quarter of 2016. We continue to monitor legal proceedings impacting the regulatory environment as it relates to our ability to resume operations in the state. Our International segment operates in numerous countries around the world and each country's operations utilize distinct currencies. Foreign currency movements unfavorably impacted our International USD loss before income taxes by $3.2 million for 2018 and favorably impacted our International USD loss before income taxes by $0.2 million for 2017. Included in these amounts are both translational and transactional impacts of changes in foreign exchange rates. The impact of transactional foreign currency gains and losses is recorded within other income (expense) in our consolidated statements of operations. Our International brand volume increased 2.2% in 2018 compared to 2017, driven by organic volume growth in many of our focus markets, partially offset by lower volumes in Mexico due to higher net pricing and the loss of the  Modelo  contract in 52 For the years ended December 31, 2018 Change December 31, 2017 Change December 31, 2016 (In millions, except percentages) Financial volume in hectoliters (1)(2) 2.214 (7.5 )% 2.394 60.1  % 1.495 Sales $ 299.5 (0.5)% $ 300.9 57.5 % $ 191.0 Excise taxes (49.4 ) 33.9  % (36.9 ) 34.7  % (27.4 ) Net sales 250.1 (5.3)% 264.0 61.4 % 163.6 Cost of goods sold (3) (160.4 ) (11.1 )% (180.5 ) 68.5  % (107.1 ) Gross profit 89.7 7.4 % 83.5 47.8 % 56.5 Marketing, general and administrative expenses (81.6 ) (19.8 )% (101.7 ) 56.0  % (65.2 ) Special items, net (4) (9.3) N/M (1.6) (94.9)% (31.1) Operating income (loss) (1.2 ) (93.9 )% (19.8 ) (50.3 )% (39.8 ) Other income (expense), net (1.5) N/M 0.1 (50.0)% 0.2 Income (loss) before income taxes $ (2.7 ) (86.3 )% $ (19.7 ) (50.3 )% $ (39.6 ) N/M = Not meaningful (2) Excludes royalty volume of 2.267 million hectoliters, 1.991 million hectoliters and 1.908 million hectoliters in 2018, 2017 and 2016, respectively. (1) Financial volumes for the year ended December 31, 2016, were recast to reflect the impacts of aligning policies on reporting financial volumes as a result of the Acquisition. (3) Includes gross inter-segment purchases, which are eliminated in the consolidated totals. (4) See Part II—Item 8 Financial Statements and Supplementary Data,  Note 7, "Special Items"  of the Notes for detail of special items. Significant events Foreign currency impact on results Volume and net sales