x
|
QUARTERLY
REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE
ACT OF
1934
|
o
|
TRANSITION
REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE
ACT OF
1934
|
CONSTELLATION
BRANDS, INC.
|
(Exact
name of registrant as specified in its charter)
|
Delaware
|
16-0716709
|
|
(State
or other jurisdiction of
incorporation
or organization)
|
(I.R.S.
Employer
Identification
No.)
|
370
Woodcliff Drive, Suite 300, Fairport, New York
|
14450
|
(Address
of principal executive offices)
|
(Zip
Code)
|
(585)
218-3600
|
(Registrant’s
telephone number, including area code)
|
(Former
name, former address and former fiscal year, if changed since last
report)
|
Class
|
Number
of Shares Outstanding
|
|
Class
A Common Stock, Par Value $.01 Per Share
|
197,159,532
|
|
Class
B Common Stock, Par Value $.01 Per Share
|
23,888,038
|
CONSTELLATION
BRANDS, INC. AND SUBSIDIARIES
|
|||||||||||||
CONSOLIDATED
STATEMENTS OF INCOME
|
|||||||||||||
(in
thousands, except per share data)
|
|||||||||||||
(unaudited)
|
|||||||||||||
For
the Six Months Ended August 31,
|
For
the Three Months Ended August 31,
|
||||||||||||
2005
|
2004
|
2005
|
2004
|
||||||||||
SALES
|
$
|
2,834,974
|
$
|
2,474,557
|
$
|
1,468,665
|
$
|
1,300,242
|
|||||
Less
- Excise taxes
|
(546,480
|
)
|
(510,311
|
)
|
(276,706
|
)
|
(263,301
|
)
|
|||||
Net
sales
|
2,288,494
|
1,964,246
|
1,191,959
|
1,036,941
|
|||||||||
COST
OF PRODUCT SOLD
|
(1,634,488
|
)
|
(1,424,101
|
)
|
(843,959
|
)
|
(747,258
|
)
|
|||||
Gross
profit
|
654,006
|
540,145
|
348,000
|
289,683
|
|||||||||
SELLING,
GENERAL AND ADMINISTRATIVE
EXPENSES
|
(321,581
|
)
|
(270,783
|
)
|
(163,717
|
)
|
(132,355
|
)
|
|||||
ACQUISITION-RELATED
INTEGRATION COSTS
|
(14,263
|
)
|
-
|
(7,824
|
)
|
-
|
|||||||
RESTRUCTURING
AND RELATED CHARGES
|
(4,142
|
)
|
(2,782
|
)
|
(2,262
|
)
|
(1,169
|
)
|
|||||
Operating
income
|
314,020
|
266,580
|
174,197
|
156,159
|
|||||||||
EQUITY
IN (LOSS) EARNINGS OF EQUITY
METHOD
INVESTEES
|
(796
|
)
|
262
|
(254
|
)
|
200
|
|||||||
INTEREST
EXPENSE, net
|
(94,180
|
)
|
(60,681
|
)
|
(46,885
|
)
|
(30,400
|
)
|
|||||
Income
before income taxes
|
219,044
|
206,161
|
127,058
|
125,959
|
|||||||||
PROVISION
FOR INCOME TAXES
|
(60,925
|
)
|
(74,218
|
)
|
(44,638
|
)
|
(45,345
|
)
|
|||||
NET
INCOME
|
158,119
|
131,943
|
82,420
|
80,614
|
|||||||||
Dividends
on preferred stock
|
(4,902
|
)
|
(4,902
|
)
|
(2,451
|
)
|
(2,451
|
)
|
|||||
INCOME
AVAILABLE TO COMMON
STOCKHOLDERS
|
$
|
153,217
|
$
|
127,041
|
$
|
79,969
|
$
|
78,163
|
|||||
SHARE
DATA:
|
|||||||||||||
Earnings
per common share:
|
|||||||||||||
Basic
- Class A Common Stock
|
$
|
0.70
|
$
|
0.60
|
$
|
0.37
|
$
|
0.37
|
|||||
Basic
- Class B Common Stock
|
$
|
0.64
|
$
|
0.54
|
$
|
0.33
|
$
|
0.33
|
|||||
Diluted
|
$
|
0.66
|
$
|
0.57
|
$
|
0.34
|
$
|
0.35
|
|||||
Weighted
average common shares outstanding:
|
|||||||||||||
Basic
- Class A Common Stock
|
196,042
|
190,171
|
196,520
|
190,902
|
|||||||||
Basic
- Class B Common Stock
|
23,930
|
24,107
|
23,905
|
24,098
|
|||||||||
Diluted
|
238,611
|
231,176
|
239,071
|
232,293
|
|||||||||
The
accompanying notes are an integral part of these statements.
|
CONSTELLATION
BRANDS, INC. AND SUBSIDIARIES
|
|||||||
CONSOLIDATED
STATEMENTS OF CASH FLOWS
|
|||||||
(in
thousands)
|
|||||||
(unaudited)
|
|||||||
For
the Six Months Ended August 31,
|
|||||||
2005
|
2004
|
||||||
CASH
FLOWS FROM OPERATING ACTIVITIES:
|
|||||||
Net
income
|
$
|
158,119
|
$
|
131,943
|
|||
Adjustments
to reconcile net income to net cash provided by
operating
activities:
|
|||||||
Depreciation
of property, plant and equipment
|
54,087
|
43,311
|
|||||
Deferred
tax provision
|
33,301
|
14,884
|
|||||
Proceeds
from settlement of interest rate swap contracts
|
30,269
|
-
|
|||||
Amortization
of intangible and other assets
|
4,051
|
5,756
|
|||||
Loss
on disposal of assets
|
1,737
|
2,813
|
|||||
Equity
in loss (earnings) of equity method investees
|
796
|
(262
|
)
|
||||
Stock-based
compensation expense
|
67
|
53
|
|||||
Amortization
of discount on long-term debt
|
39
|
35
|
|||||
Noncash
portion of loss on extinguishment of debt
|
-
|
1,799
|
|||||
Change
in operating assets and liabilities, net of effects
from
sales of businesses:
|
|||||||
Accounts
receivable, net
|
(66,083
|
)
|
(169,792
|
)
|
|||
Inventories
|
(74,478
|
)
|
(119,808
|
)
|
|||
Prepaid
expenses and other current assets
|
(5,526
|
)
|
(36,251
|
)
|
|||
Accounts
payable
|
44,561
|
145,195
|
|||||
Accrued
excise taxes
|
(2,221
|
)
|
22,085
|
||||
Other
accrued expenses and liabilities
|
(3,928
|
)
|
20,502
|
||||
Other,
net
|
(669
|
)
|
(8,113
|
)
|
|||
Total
adjustments
|
16,003
|
(77,793
|
)
|
||||
Net
cash provided by operating activities
|
174,122
|
54,150
|
|||||
CASH
FLOWS FROM INVESTING ACTIVITIES:
|
|||||||
Proceeds
from sale of assets
|
111,963
|
1,024
|
|||||
Proceeds
from sale of equity method investment
|
35,953
|
-
|
|||||
Proceeds
from sale of businesses
|
17,861
|
-
|
|||||
Purchases
of property, plant and equipment
|
(62,962
|
)
|
(50,910
|
)
|
|||
Investment
in equity method investee
|
(2,286
|
)
|
-
|
||||
Payment
of accrued earn-out amount
|
(1,648
|
)
|
(1,339
|
)
|
|||
Other
investing activities
|
(5,008
|
)
|
-
|
||||
Net
cash provided by (used in) investing activities
|
93,873
|
(51,225
|
)
|
||||
CASH
FLOWS FROM FINANCING ACTIVITIES:
|
|||||||
Principal
payments of long-term debt
|
(336,677
|
)
|
(234,676
|
)
|
|||
Payment
of preferred stock dividends
|
(4,902
|
)
|
(4,902
|
)
|
|||
Net
proceeds from notes payable
|
55,050
|
192,472
|
|||||
Exercise
of employee stock options
|
17,334
|
17,351
|
|||||
Proceeds
from employee stock purchases
|
3,044
|
2,432
|
|||||
Payment
of issuance costs of long-term debt
|
-
|
(901
|
)
|
||||
Net
cash used in financing activities
|
(266,151
|
)
|
(28,224
|
)
|
|||
Effect
of exchange rate changes on cash and cash investments
|
(812
|
)
|
(2,069
|
)
|
|||
NET
INCREASE (DECREASE) IN CASH AND CASH INVESTMENTS
|
1,032
|
(27,368
|
)
|
||||
CASH
AND CASH INVESTMENTS, beginning of period
|
17,635
|
37,136
|
|||||
CASH
AND CASH INVESTMENTS, end of period
|
$
|
18,667
|
$
|
9,768
|
|||
The
accompanying notes are an integral part of these statements.
|
1)
|
MANAGEMENT’S
REPRESENTATIONS:
|
(in
thousands)
|
||||
Current
assets
|
$
|
508,461
|
||
Property,
plant and equipment
|
438,660
|
|||
Other
assets
|
129,329
|
|||
Trademarks
|
138,000
|
|||
Goodwill
|
630,687
|
|||
Total
assets acquired
|
1,845,137
|
|||
Current
liabilities
|
305,373
|
|||
Long-term
liabilities
|
497,903
|
|||
Total
liabilities assumed
|
803,276
|
|||
Net
assets acquired
|
$
|
1,041,861
|
For
the Six Months
Ended
August 31,
|
For
the Three Months
Ended
August 31,
|
||||||||||||
2005
|
2004
|
2005
|
2004
|
||||||||||
(in
thousands, except per share data)
|
|||||||||||||
Net
sales
|
$
|
2,288,494
|
$
|
2,183,614
|
$
|
1,191,959
|
$
|
1,140,696
|
|||||
Income
before income taxes
|
$
|
219,044
|
$
|
234,701
|
$
|
127,058
|
$
|
141,302
|
|||||
Net
income
|
$
|
158,119
|
$
|
150,398
|
$
|
82,420
|
$
|
90,508
|
|||||
Income
available to common stockholders
|
$
|
153,217
|
$
|
145,496
|
$
|
79,969
|
$
|
88,057
|
|||||
Earnings
per common share - basic:
|
|||||||||||||
Class
A Common Stock
|
$
|
0.70
|
$
|
0.69
|
$
|
0.37
|
$
|
0.41
|
|||||
Class
B Common Stock
|
$
|
0.64
|
$
|
0.62
|
$
|
0.33
|
$
|
0.38
|
|||||
Earnings
per common share - diluted
|
$
|
0.66
|
$
|
0.65
|
$
|
0.34
|
$
|
0.39
|
|||||
Weighted
average common shares
outstanding
- basic:
|
|||||||||||||
Class
A Common Stock
|
196,042
|
190,171
|
196,520
|
190,902
|
|||||||||
Class
B Common Stock
|
23,930
|
24,107
|
23,905
|
24,098
|
|||||||||
Weighted
average common shares
outstanding
- diluted
|
238,611
|
231,176
|
239,071
|
232,293
|
4)
|
INVENTORIES:
|
August
31,
2005
|
February
28,
2005
|
||||||
(in
thousands)
|
|||||||
Raw
materials and supplies
|
$
|
78,535
|
$
|
71,562
|
|||
In-process
inventories
|
901,900
|
957,567
|
|||||
Finished
case goods
|
635,136
|
578,606
|
|||||
$
|
1,615,571
|
$
|
1,607,735
|
5)
|
GOODWILL:
|
Constellation
Wines
|
Constellation
Beers
and
Spirits
|
Consolidated
|
||||||||
(in
thousands)
|
||||||||||
Balance,
February 28, 2005
|
$
|
2,031,244
|
$
|
151,425
|
$
|
2,182,669
|
||||
Purchase
accounting allocations
|
40,228
|
15
|
40,243
|
|||||||
Foreign
currency translation adjustments
|
(50,675
|
)
|
550
|
(50,125
|
)
|
|||||
Purchase
price earn-out
|
1,438
|
-
|
1,438
|
|||||||
Balance,
August 31, 2005
|
$
|
2,022,235
|
$
|
151,990
|
$
|
2,174,225
|
6)
|
INTANGIBLE
ASSETS:
|
August
31, 2005
|
February
28, 2005
|
||||||||||||
Gross
Carrying
Amount
|
Net
Carrying
Amount
|
Gross
Carrying
Amount
|
Net
Carrying
Amount
|
||||||||||
(in
thousands)
|
|||||||||||||
Amortizable
intangible assets:
|
|||||||||||||
Distributor
relationships
|
$
|
3,700
|
$
|
3,618
|
$
|
3,700
|
$
|
3,679
|
|||||
Distribution
agreements
|
18,882
|
8,002
|
12,884
|
1,666
|
|||||||||
Other
|
2,214
|
1,223
|
5,230
|
1,229
|
|||||||||
Total
|
$
|
24,796
|
12,843
|
$
|
21,814
|
6,574
|
|||||||
Nonamortizable
intangible assets:
|
|||||||||||||
Trademarks
|
855,728
|
920,664
|
|||||||||||
Agency
relationships
|
18,412
|
18,412
|
|||||||||||
Total
|
874,140
|
939,076
|
|||||||||||
Total
intangible assets
|
$
|
886,983
|
$
|
945,650
|
(in
thousands)
|
||||
2006
|
$
|
1,296
|
||
2007
|
$
|
1,417
|
||
2008
|
$
|
1,101
|
||
2009
|
$
|
1,088
|
||
2010
|
$
|
1,066
|
||
2011
|
$
|
827
|
||
Thereafter
|
$
|
6,048
|
7)
|
BORROWINGS:
|
Tranche
A
Term
Loan
|
Tranche
B
Term
Loan
|
Total
|
||||||||
(in
thousands)
|
||||||||||
2006
|
$
|
-
|
$
|
-
|
$
|
-
|
||||
2007
|
33,382
|
-
|
33,382
|
|||||||
2008
|
89,853
|
15,299
|
105,152
|
|||||||
2009
|
110,588
|
15,299
|
125,887
|
|||||||
2010
|
117,500
|
15,299
|
132,799
|
|||||||
Thereafter
|
103,677
|
1,449,603
|
1,553,280
|
|||||||
$
|
455,000
|
$
|
1,495,500
|
$
|
1,950,500
|
8)
|
INCOME
TAXES:
|
9)
|
RETIREMENT
SAVINGS PLANS AND POSTRETIREMENT BENEFIT
PLANS:
|
For
the Six Months
Ended
August 31,
|
For
the Three Months
Ended
August 31,
|
||||||||||||
2005
|
2004
|
2005
|
2004
|
||||||||||
(in
thousands)
|
|||||||||||||
Service
cost
|
$
|
1,074
|
$
|
1,074
|
$
|
534
|
$
|
531
|
|||||
Interest
cost
|
9,027
|
8,008
|
4,445
|
4,033
|
|||||||||
Expected
return on plan assets
|
(8,683
|
)
|
(8,458
|
)
|
(4,276
|
)
|
(4,257
|
)
|
|||||
Amortization
of prior service cost
|
96
|
5
|
48
|
3
|
|||||||||
Recognized
net actuarial loss
|
1,468
|
1,251
|
722
|
630
|
|||||||||
Net
periodic benefit cost
|
$
|
2,982
|
$
|
1,880
|
$
|
1,473
|
$
|
940
|
For
the Six Months
Ended
August 31,
|
For
the Three Months
Ended
August 31,
|
||||||||||||
2005
|
2004
|
2005
|
2004
|
||||||||||
(in
thousands)
|
|||||||||||||
Service
cost
|
$
|
107
|
$
|
103
|
$
|
54
|
$
|
51
|
|||||
Interest
cost
|
151
|
166
|
75
|
83
|
|||||||||
Amortization
of prior service cost
|
(27
|
)
|
4
|
(13
|
)
|
2
|
|||||||
Recognized
net actuarial loss
|
12
|
11
|
6
|
6
|
|||||||||
Net
periodic benefit cost
|
$
|
243
|
$
|
284
|
$
|
122
|
$
|
142
|
11)
|
EARNINGS
PER COMMON SHARE:
|
For
the Six Months
Ended
August 31,
|
For
the Three Months
Ended
August 31,
|
||||||||||||
2005
|
2004
|
2005
|
2004
|
||||||||||
(in
thousands, except per share data)
|
|||||||||||||
Net
income
|
$
|
158,119
|
$
|
131,943
|
$
|
82,420
|
$
|
80,614
|
|||||
Dividends
on preferred stock
|
(4,902
|
)
|
(4,902
|
)
|
(2,451
|
)
|
(2,451
|
)
|
|||||
Income
available to common stockholders
|
$
|
153,217
|
$
|
127,041
|
$
|
79,969
|
$
|
78,163
|
|||||
Weighted
average common shares outstanding - basic:
|
|||||||||||||
Class
A Common Stock
|
196,042
|
190,171
|
196,520
|
190,902
|
|||||||||
Class
B Convertible Common Stock
|
23,930
|
24,107
|
23,905
|
24,098
|
|||||||||
Total
weighted average common shares outstanding - basic
|
219,972
|
214,278
|
220,425
|
215,000
|
|||||||||
Stock
options
|
8,656
|
6,915
|
8,663
|
7,310
|
|||||||||
Preferred
stock
|
9,983
|
9,983
|
9,983
|
9,983
|
|||||||||
Weighted
average common shares outstanding - diluted
|
238,611
|
231,176
|
239,071
|
232,293
|
|||||||||
Earnings
per common share - basic:
|
|||||||||||||
Class
A Common Stock
|
$
|
0.70
|
$
|
0.60
|
$
|
0.37
|
$
|
0.37
|
|||||
Class
B Convertible Common Stock
|
$
|
0.64
|
$
|
0.54
|
$
|
0.33
|
$
|
0.33
|
|||||
Earnings
per common share - diluted
|
$
|
0.66
|
$
|
0.57
|
$
|
0.34
|
$
|
0.35
|
12)
|
STOCK-BASED
COMPENSATION:
|
For
the Six Months
Ended
August 31,
|
For
the Three Months
Ended
August 31,
|
||||||||||||
2005
|
2004
|
2005
|
2004
|
||||||||||
(in
thousands, except per share data)
|
|||||||||||||
Net
income, as reported
|
$
|
158,119
|
$
|
131,943
|
$
|
82,420
|
$
|
80,614
|
|||||
Add:
Stock-based employee compensation
expense
included in reported net income, net of related tax
effects
|
34
|
32
|
27
|
17
|
|||||||||
Deduct:
Total stock-based employee
compensation
expense determined under fair value based method for all awards,
net of
related tax effects
|
(5,333
|
)
|
(10,476
|
)
|
(2,005
|
)
|
(7,842
|
)
|
|||||
Pro
forma net income
|
$
|
152,820
|
$
|
121,499
|
$
|
80,442
|
$
|
72,789
|
|||||
Earnings
per common share - basic:
|
|||||||||||||
Class
A Common Stock, as reported
|
$
|
0.70
|
$
|
0.60
|
$
|
0.37
|
$
|
0.37
|
|||||
Class
B Convertible Common Stock, as reported
|
$
|
0.64
|
$
|
0.54
|
$
|
0.33
|
$
|
0.33
|
|||||
Class
A Common Stock, pro forma
|
$
|
0.68
|
$
|
0.55
|
$
|
0.36
|
$
|
0.33
|
|||||
Class
B Convertible Common Stock, pro forma
|
$
|
0.62
|
$
|
0.50
|
$
|
0.32
|
$
|
0.30
|
|||||
Earnings
per common share - diluted, as reported
|
$
|
0.66
|
$
|
0.57
|
$
|
0.34
|
$
|
0.35
|
|||||
Earnings
per common share - diluted, pro forma
|
$
|
0.64
|
$
|
0.52
|
$
|
0.34
|
$
|
0.31
|
13)
|
COMPREHENSIVE
INCOME (LOSS):
|
For
the Six Months
Ended
August 31,
|
For
the Three Months
Ended
August 31,
|
||||||||||||
2005
|
2004
|
2005
|
2004
|
||||||||||
(in
thousands)
|
|||||||||||||
Net
income
|
$
|
158,119
|
$
|
131,943
|
$
|
82,420
|
$
|
80,614
|
|||||
Other
comprehensive income, net of tax:
|
|||||||||||||
Foreign
currency translation adjustments, net of tax
benefit
(expense) of $7,414, ($21,295), $744 and $1,458,
respectively
|
(115,262
|
)
|
(124,245
|
)
|
(1,838
|
)
|
(19,500
|
)
|
|||||
Cash
flow hedges:
|
|||||||||||||
Net
derivative losses, net of tax benefit of $7,775,
$9,948,
$448 and $484, respectively
|
(14,307
|
)
|
(23,097
|
)
|
(1,647
|
)
|
(1,201
|
)
|
|||||
Reclassification
adjustments, net of tax benefit
(expense)
of $1,778, ($659), $692 and $844, respectively
|
(3,109
|
)
|
1,434
|
(856
|
)
|
(1,977
|
)
|
||||||
Net
cash flow hedges
|
(17,416
|
)
|
(21,663
|
)
|
(2,503
|
)
|
(3,178
|
)
|
|||||
Unrealized
gains (losses) on marketable equity
securities,
net of tax (expense) benefit of ($17) and $62,
respectively
|
-
|
39
|
-
|
(143
|
)
|
||||||||
Minimum
pension liability adjustment, net of tax
expense
of ($1,927), ($813), ($135) and ($316), respectively
|
4,511
|
1,921
|
336
|
790
|
|||||||||
Total
comprehensive income
|
$
|
29,952
|
$
|
(12,005
|
)
|
$
|
78,415
|
$
|
58,583
|
Foreign
Currency
Translation
Adjustments
|
Net
Unrealized
Gains
on
Derivatives
|
Unrealized
Gain
(Loss)
on
Marketable
Equity
Securities
|
Minimum
Pension
Liability
Adjustment
|
Accumulated
Other
Comprehensive
Income
(Loss)
|
||||||||||||
(in
thousands)
|
||||||||||||||||
Balance,
February 28, 2005
|
$
|
473,949
|
$
|
37,316
|
$
|
-
|
$
|
(79,422
|
)
|
$
|
431,843
|
|||||
Current
period change
|
(115,262
|
)
|
(17,416
|
)
|
-
|
4,511
|
(128,167
|
)
|
||||||||
Balance,
August 31, 2005
|
$
|
358,687
|
$
|
19,900
|
$
|
-
|
$
|
(74,911
|
)
|
$
|
303,676
|
15)
|
RESTRUCTURING
AND RELATED CHARGES:
|
Employee
Termination
Benefit
Costs
|
Contract
Termination
Costs
|
Facility
Consolidation/
Relocation
Costs
|
Total
|
||||||||||
(in
thousands)
|
|||||||||||||
Balance,
February 28, 2005
|
$
|
15,270
|
$
|
23,204
|
$
|
743
|
$
|
39,217
|
|||||
Robert
Mondavi acquisition
|
635
|
658
|
459
|
1,752
|
|||||||||
Restructuring
charges
|
1,176
|
-
|
704
|
1,880
|
|||||||||
Cash
expenditures
|
(9,506
|
)
|
(5,016
|
)
|
(161
|
)
|
(14,683
|
)
|
|||||
Foreign
currency adjustments
|
(36
|
)
|
(115
|
)
|
(42
|
)
|
(193
|
)
|
|||||
Balance,
May 31, 2005
|
7,539
|
18,731
|
1,703
|
27,973
|
|||||||||
Robert
Mondavi acquisition
|
1,889
|
2,038
|
(787
|
)
|
3,140
|
||||||||
Restructuring
charges
|
1,025
|
629
|
608
|
2,262
|
|||||||||
Cash
expenditures
|
(5,391
|
)
|
(11,304
|
)
|
(817
|
)
|
(17,512
|
)
|
|||||
Foreign
currency adjustments
|
(19
|
)
|
(52
|
)
|
(1
|
)
|
(72
|
)
|
|||||
Balance,
August 31, 2005
|
$
|
5,043
|
$
|
10,042
|
$
|
706
|
$
|
15,791
|
16)
|
CONDENSED
CONSOLIDATING FINANCIAL
INFORMATION:
|
Parent
Company
|
Subsidiary
Guarantors
|
Subsidiary
Nonguarantors
|
Eliminations
|
Consolidated
|
||||||||||||
(in
thousands)
|
||||||||||||||||
Condensed
Consolidating Balance Sheet at August 31, 2005
|
||||||||||||||||
Current
assets:
|
||||||||||||||||
Cash
and cash investments
|
$
|
3,736
|
$
|
7,928
|
$
|
7,003
|
$
|
-
|
$
|
18,667
|
||||||
Accounts
receivable, net
|
169,022
|
260,592
|
461,025
|
-
|
890,639
|
|||||||||||
Inventories
|
35,726
|
876,988
|
722,229
|
(19,372
|
)
|
1,615,571
|
||||||||||
Prepaid
expenses and other
current
assets
|
1,034
|
163,866
|
44,729
|
-
|
209,629
|
|||||||||||
Intercompany
receivable (payable)
|
118,898
|
(786,211
|
)
|
667,313
|
-
|
-
|
||||||||||
Total
current assets
|
328,416
|
523,163
|
1,902,299
|
(19,372
|
)
|
2,734,506
|
||||||||||
Property,
plant and equipment, net
|
38,376
|
747,947
|
653,412
|
-
|
1,439,735
|
|||||||||||
Investments
in subsidiaries
|
5,140,900
|
1,867,962
|
-
|
(7,008,862
|
)
|
-
|
||||||||||
Goodwill
|
-
|
1,283,777
|
890,448
|
-
|
2,174,225
|
|||||||||||
Intangible
assets, net
|
-
|
545,345
|
341,638
|
-
|
886,983
|
|||||||||||
Other
assets, net
|
30,036
|
127,007
|
70,881
|
-
|
227,924
|
|||||||||||
Total
assets
|
$
|
5,537,728
|
$
|
5,095,201
|
$
|
3,858,678
|
$
|
(7,028,234
|
)
|
$
|
7,463,373
|
|||||
Current
liabilities:
|
||||||||||||||||
Notes
payable to banks
|
$
|
42,500
|
$
|
-
|
$
|
29,009
|
$
|
-
|
$
|
71,509
|
||||||
Current
maturities of long-term debt
|
200,071
|
3,874
|
9,413
|
-
|
213,358
|
|||||||||||
Accounts
payable
|
4,093
|
135,081
|
222,910
|
-
|
362,084
|
|||||||||||
Accrued
excise taxes
|
9,769
|
33,575
|
27,358
|
-
|
70,702
|
|||||||||||
Other
accrued expenses and liabilities
|
104,368
|
204,613
|
286,270
|
(5,966
|
)
|
589,285
|
||||||||||
Total
current liabilities
|
360,801
|
377,143
|
574,960
|
(5,966
|
)
|
1,306,938
|
||||||||||
Long-term
debt, less current maturities
|
2,679,762
|
5,634
|
19,071
|
-
|
2,704,467
|
|||||||||||
Deferred
income taxes
|
(4,622
|
)
|
327,868
|
32,992
|
-
|
356,238
|
||||||||||
Other
liabilities
|
5,671
|
116,069
|
139,971
|
-
|
261,711
|
Parent
Company
|
Subsidiary
Guarantors
|
Subsidiary
Nonguarantors
|
Eliminations
|
Consolidated
|
||||||||||||
(in
thousands)
|
||||||||||||||||
Stockholders’
equity:
|
||||||||||||||||
Preferred
stock
|
2
|
-
|
-
|
-
|
2
|
|||||||||||
Class
A and Class B common stock
|
2,306
|
6,443
|
141,583
|
(148,026
|
)
|
2,306
|
||||||||||
Additional
paid-in capital
|
1,125,219
|
2,301,961
|
2,498,737
|
(4,800,698
|
)
|
1,125,219
|
||||||||||
Retained
earnings
|
1,446,719
|
1,815,292
|
244,846
|
(2,076,787
|
)
|
1,430,070
|
||||||||||
Accumulated
other comprehensive
(loss)
income
|
(50,876
|
)
|
144,791
|
206,518
|
3,243
|
303,676
|
||||||||||
Treasury
stock and other
|
(27,254
|
)
|
-
|
-
|
-
|
(27,254
|
)
|
|||||||||
Total
stockholders’ equity
|
2,496,116
|
4,268,487
|
3,091,684
|
(7,022,268
|
)
|
2,834,019
|
||||||||||
Total
liabilities and
stockholders’
equity
|
$
|
5,537,728
|
$
|
5,095,201
|
$
|
3,858,678
|
$
|
(7,028,234
|
)
|
$
|
7,463,373
|
|||||
Condensed
Consolidating Balance Sheet at February 28, 2005
|
||||||||||||||||
Current
assets:
|
||||||||||||||||
Cash
and cash investments
|
$
|
-
|
$
|
10,095
|
$
|
7,540
|
$
|
-
|
$
|
17,635
|
||||||
Accounts
receivable, net
|
132,997
|
293,588
|
423,057
|
-
|
849,642
|
|||||||||||
Inventories
|
35,719
|
943,711
|
637,556
|
(9,251
|
)
|
1,607,735
|
||||||||||
Prepaid
expenses and other
current
assets
|
41,515
|
163,910
|
53,598
|
-
|
259,023
|
|||||||||||
Intercompany
receivable (payable)
|
450,781
|
(1,111,951
|
)
|
661,170
|
-
|
-
|
||||||||||
Total
current assets
|
661,012
|
299,353
|
1,782,921
|
(9,251
|
)
|
2,734,035
|
||||||||||
Property,
plant and equipment, net
|
37,476
|
884,690
|
674,201
|
-
|
1,596,367
|
|||||||||||
Investments
in subsidiaries
|
4,961,521
|
1,844,354
|
-
|
(6,805,875
|
)
|
-
|
||||||||||
Goodwill
|
-
|
1,242,132
|
940,537
|
-
|
2,182,669
|
|||||||||||
Intangible
assets, net
|
-
|
587,075
|
358,575
|
-
|
945,650
|
|||||||||||
Other
assets, net
|
28,559
|
221,642
|
95,250
|
-
|
345,451
|
|||||||||||
Total
assets
|
$
|
5,688,568
|
$
|
5,079,246
|
$
|
3,851,484
|
$
|
(6,815,126
|
)
|
$
|
7,804,172
|
|||||
Current
liabilities:
|
||||||||||||||||
Notes
payable to banks
|
$
|
14,000
|
$
|
-
|
$
|
2,475
|
$
|
-
|
$
|
16,475
|
||||||
Current
maturities of long-term debt
|
60,068
|
4,307
|
3,719
|
-
|
68,094
|
|||||||||||
Accounts
payable
|
4,237
|
146,116
|
194,901
|
-
|
345,254
|
|||||||||||
Accrued
excise taxes
|
13,633
|
41,070
|
19,653
|
-
|
74,356
|
|||||||||||
Other
accrued expenses and liabilities
|
146,837
|
191,438
|
298,529
|
(2,896
|
)
|
633,908
|
||||||||||
Total
current liabilities
|
238,775
|
382,931
|
519,277
|
(2,896
|
)
|
1,138,087
|
||||||||||
Long-term
debt, less current maturities
|
3,167,852
|
9,089
|
27,766
|
-
|
3,204,707
|
|||||||||||
Deferred
income taxes
|
(17,255
|
)
|
377,423
|
29,718
|
-
|
389,886
|
||||||||||
Other
liabilities
|
1,101
|
126,173
|
164,305
|
-
|
291,579
|
|||||||||||
Stockholders’
equity:
|
||||||||||||||||
Preferred
stock
|
2
|
-
|
-
|
-
|
2
|
|||||||||||
Class
A and Class B common stock
|
2,288
|
6,443
|