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
|
200,489,240
|
|
Class
B Common Stock, Par Value $.01 Per Share
|
23,844,838
|
CONSOLIDATED
STATEMENTS OF INCOME
|
|||||||
(in
millions, except per share data)
|
|||||||
(unaudited)
|
|||||||
For
the Three Months Ended May 31,
|
|||||||
2006
|
2005
|
||||||
SALES
|
$
|
1,430.2
|
$
|
1,366.3
|
|||
Less
- Excise taxes
|
(274.3
|
)
|
(269.8
|
)
|
|||
Net
sales
|
1,155.9
|
1,096.5
|
|||||
COST
OF PRODUCT SOLD
|
(837.3
|
)
|
(790.5
|
)
|
|||
Gross
profit
|
318.6
|
306.0
|
|||||
SELLING,
GENERAL AND ADMINISTRATIVE
EXPENSES
|
(172.6
|
)
|
(157.9
|
)
|
|||
RESTRUCTURING AND RELATED CHARGES | (2.3 | ) | (1.9 | ) | |||
ACQUISITION-RELATED
INTEGRATION COSTS
|
(0.7
|
)
|
(6.4
|
)
|
|||
Operating
income
|
143.0
|
139.8
|
|||||
EQUITY
IN EARNINGS (LOSS) OF EQUITY
METHOD
INVESTEES
|
0.1
|
(0.5
|
)
|
||||
GAIN
ON CHANGE IN FAIR VALUE OF
DERIVATIVE
INSTRUMENT
|
52.5
|
-
|
|||||
INTEREST
EXPENSE, net
|
(48.7
|
)
|
(47.3
|
)
|
|||
Income
before income taxes
|
146.9
|
92.0
|
|||||
PROVISION
FOR INCOME TAXES
|
(61.4
|
)
|
(16.3
|
)
|
|||
NET
INCOME
|
85.5
|
75.7
|
|||||
Dividends
on preferred stock
|
(2.5
|
)
|
(2.5
|
)
|
|||
INCOME
AVAILABLE TO COMMON
STOCKHOLDERS
|
$
|
83.0
|
$
|
73.2
|
|||
SHARE
DATA:
|
|||||||
Earnings
per common share:
|
|||||||
Basic
- Class A Common Stock
|
$
|
0.38
|
$
|
0.34
|
|||
Basic
- Class B Common Stock
|
$
|
0.34
|
$
|
0.31
|
|||
Diluted
|
$
|
0.36
|
$
|
0.32
|
|||
Weighted
average common shares outstanding:
|
|||||||
Basic
- Class A Common Stock
|
199.571
|
195.564
|
|||||
Basic
- Class B Common Stock
|
23.853
|
23.955
|
|||||
Diluted
|
240.100
|
238.178
|
|||||
The
accompanying notes are an integral part of these
statements.
|
CONSTELLATION
BRANDS, INC. AND SUBSIDIARIES
|
|||||||
CONSOLIDATED
STATEMENTS OF CASH FLOWS
|
|||||||
(in
millions)
|
|||||||
(unaudited)
|
|||||||
For
the Three Months Ended May 31,
|
|||||||
2006
|
2005
|
||||||
CASH
FLOWS FROM OPERATING ACTIVITIES:
|
|||||||
Net
income
|
$
|
85.5
|
$
|
75.7
|
|||
Adjustments
to reconcile net income to net cash provided by
operating
activities:
|
|||||||
Depreciation
of property, plant and equipment
|
26.7
|
27.5
|
|||||
Loss
on disposal of business
|
17.3
|
-
|
|||||
Deferred
tax provision
|
15.6
|
13.5
|
|||||
Stock-based
compensation expense
|
3.6
|
-
|
|||||
Amortization
of intangible and other assets
|
2.0
|
1.8
|
|||||
Loss
on disposal of assets
|
0.3
|
1.4
|
|||||
Gain
on change in fair vlaue of derivative instrument
|
(52.5
|
)
|
-
|
||||
Equity
in (earnings) loss of equity method investees
|
(0.1
|
)
|
0.5
|
||||
Proceeds
from early termination of derivative instruments
|
-
|
30.3
|
|||||
Change
in operating assets and liabilities, net of effects
from
purchases and sales of businesses:
|
|||||||
Accounts
receivable, net
|
(66.4
|
)
|
8.5
|
||||
Inventories
|
(31.3
|
)
|
(113.0
|
)
|
|||
Prepaid
expenses and other current assets
|
(10.9
|
)
|
(3.6
|
)
|
|||
Accounts
payable
|
45.4
|
70.1
|
|||||
Accrued
excise taxes
|
(9.7
|
)
|
(14.0
|
)
|
|||
Other
accrued expenses and liabilities
|
(11.1
|
)
|
(35.7
|
)
|
|||
Other,
net
|
(7.7
|
)
|
(3.0
|
)
|
|||
Total
adjustments
|
(78.8
|
)
|
(15.7
|
)
|
|||
Net
cash provided by operating activities
|
6.7
|
60.0
|
|||||
CASH
FLOWS FROM INVESTING ACTIVITIES:
|
|||||||
Purchases
of property, plant and equipment
|
(45.1
|
)
|
(31.8
|
)
|
|||
Payment
of accrued earn-out amount
|
(1.1
|
)
|
(1.6
|
)
|
|||
Proceeds
from sales of businesses
|
28.0
|
17.8
|
|||||
Proceeds
from sales of assets
|
0.7
|
92.8
|
|||||
Proceeds
from sales of equity method investments
|
-
|
35.2
|
|||||
Investment
in equity method investee
|
-
|
(2.3
|
)
|
||||
Other
investing activities
|
(2.1
|
)
|
-
|
||||
Net
cash (used in) provided by investing activities
|
(19.6
|
)
|
110.1
|
||||
CASH
FLOWS FROM FINANCING ACTIVITIES:
|
|||||||
Net
proceeds from notes payable
|
83.9
|
46.3
|
|||||
Exercise
of employee stock options
|
8.6
|
8.7
|
|||||
Excess
tax benefits from share-based payment awards
|
1.7
|
-
|
|||||
Principal
payments of long-term debt
|
(52.6
|
)
|
(219.5
|
)
|
|||
Payment
of preferred stock dividends
|
(2.5
|
)
|
(2.5
|
)
|
|||
Net
cash provided by (used in) financing activities
|
39.1
|
(167.0
|
)
|
||||
Effect
of exchange rate changes on cash and cash investments
|
0.4
|
(1.5
|
)
|
||||
NET
INCREASE IN CASH AND CASH INVESTMENTS
|
26.6
|
1.6
|
|||||
CASH
AND CASH INVESTMENTS, beginning of period
|
10.9
|
17.6
|
|||||
CASH
AND CASH INVESTMENTS, end of period
|
$
|
37.5
|
$
|
19.2
|
|||
The
accompanying notes are an integral part of these
statements.
|
1)
|
MANAGEMENT’S
REPRESENTATIONS:
|
2)
|
RECENTLY
ADOPTED ACCOUNTING
PRONOUNCEMENTS:
|
3)
|
INVENTORIES:
|
May
31,
2006
|
February
28,
2006
|
||||||
(in
millions)
|
|||||||
Raw
materials and supplies
|
$
|
86.6
|
$
|
82.4
|
|||
In-process
inventories
|
1,103.0
|
1,081.3
|
|||||
Finished
case goods
|
561.5
|
540.7
|
|||||
$
|
1,751.1
|
$
|
1,704.4
|
4)
|
GOODWILL:
|
Constellation
Wines
|
Constellation
Beers
and
Spirits
|
Consolidated
|
||||||||
(in
millions)
|
||||||||||
Balance,
February 28, 2006
|
$
|
2,034.9
|
$
|
158.7
|
$
|
2,193.6
|
||||
Foreign
currency translation adjustments
|
35.2
|
0.5
|
35.7
|
|||||||
Purchase
price earn-out
|
0.7
|
-
|
0.7
|
|||||||
Disposal
of
business
|
(25.9
|
)
|
-
|
(25.9
|
)
|
|||||
Balance,
May 31, 2006
|
$
|
2,044.9
|
$
|
159.2
|
$
|
2,204.1
|
5)
|
INTANGIBLE
ASSETS:
|
May
31, 2006
|
February
28, 2006
|
||||||||||||
Gross
Carrying
Amount
|
Net
Carrying
Amount
|
Gross
Carrying
Amount
|
Net
Carrying
Amount
|
||||||||||
(in
millions)
|
|||||||||||||
Amortizable
intangible assets:
|
|||||||||||||
Distributor
relationships
|
$
|
3.7
|
$
|
3.5
|
$
|
3.7
|
$
|
3.6
|
|||||
Distribution
agreements
|
18.9
|
6.5
|
18.9
|
7.0
|
|||||||||
Other
|
2.4
|
1.3
|
2.4
|
1.3
|
|||||||||
Total
|
$
|
25.0
|
11.3
|
$
|
25.0
|
11.9
|
|||||||
Nonamortizable
intangible assets:
|
|||||||||||||
Trademarks
|
857.2
|
853.6
|
|||||||||||
Agency
relationships
|
18.4
|
18.4
|
|||||||||||
Total
|
875.6
|
872.0
|
|||||||||||
Total
intangible assets
|
$
|
886.9
|
$
|
883.9
|
(in
millions)
|
||||
2007
|
$
|
0.9
|
||
2008
|
$
|
1.2
|
||
2009
|
$
|
1.2
|
||
2010
|
$
|
1.1
|
||
2011
|
$
|
0.9
|
||
2012
|
$
|
0.8
|
||
Thereafter
|
$
|
5.2
|
6)
|
BORROWINGS:
|
Tranche
A
Term
Loan
|
|
Tranche
B
Term
Loan
|
|
Total
|
||||||
(in
millions)
|
||||||||||
2007
|
$
|
-
|
$
|
-
|
$
|
-
|
||||
2008
|
-
|
-
|
-
|
|||||||
2009
|
101.7
|
14.6
|
116.3
|
|||||||
2010
|
108.0
|
14.6
|
122.6
|
|||||||
2011
|
95.3
|
353.1
|
448.4
|
|||||||
2012
|
-
|
1,026.7
|
1,026.7
|
|||||||
$
|
305.0
|
$
|
1,409.0
|
$
|
1,714.0
|
7)
|
INCOME
TAXES:
|
8)
|
RETIREMENT
SAVINGS PLANS AND POSTRETIREMENT BENEFIT
PLANS:
|
For
the Three
Months
Ended
May 31,
|
|||||||
2006
|
|
2005
|
|||||
(in
millions)
|
|||||||
Service
cost
|
$
|
0.6
|
$
|
0.5
|
|||
Interest
cost
|
4.8
|
4.6
|
|||||
Expected
return on plan assets
|
(5.4
|
)
|
(4.4
|
)
|
|||
Amortization
of prior service cost
|
0.4
|
-
|
|||||
Recognized
net actuarial loss
|
0.1
|
0.8
|
|||||
Net
periodic benefit cost
|
$
|
0.5
|
$
|
1.5
|
For
the Three
Months
Ended
May 31,
|
|||||||
2006
|
|
2005
|
|||||
(in
millions)
|
|||||||
Service
cost
|
$
|
-
|
$
|
-
|
|||
Interest
cost
|
0.1
|
0.1
|
|||||
Amortization
of prior service cost
|
-
|
-
|
|||||
Recognized
net actuarial loss
|
-
|
-
|
|||||
Net
periodic benefit cost
|
$
|
0.1
|
$
|
0.1
|
9)
|
EARNINGS
PER COMMON SHARE:
|
For
the Three Months
Ended
May 31,
|
|||||||
2006
|
2005
|
||||||
(in
millions, except per share data)
|
|||||||
Net
income
|
$
|
85.5
|
$
|
75.7
|
|||
Dividends
on preferred stock
|
(2.5
|
)
|
(2.5
|
)
|
|||
Income
available to common stockholders
|
$
|
83.0
|
$
|
73.2
|
|||
Weighted
average common shares outstanding - basic:
|
|||||||
Class
A Common Stock
|
199.571
|
195.564
|
|||||
Class
B Common Stock
|
23.853
|
23.955
|
|||||
Total
weighted average common shares outstanding - basic
|
223.424
|
219.519
|
|||||
Stock
options
|
6.693
|
8.676
|
|||||
Preferred
stock
|
9.983
|
9.983
|
|||||
Weighted
average common shares outstanding - diluted
|
240.100
|
238.178
|
|||||
Earnings
per common share - basic:
|
|||||||
Class
A Common Stock
|
$
|
0.38
|
$
|
0.34
|
|||
Class
B Common Stock
|
$
|
0.34
|
$
|
0.31
|
|||
Earnings
per common share - diluted
|
$
|
0.36
|
$
|
0.32
|
10)
|
STOCK-BASED
COMPENSATION:
|
For
the Three Months
Ended
May 31, 2006
|
|||||||
As
Reported
|
|
Under
APB
No. 25
|
|||||
(in
millions, except per share data)
|
|||||||
Income
before income taxes
|
$
|
146.9
|
$
|
150.5
|
|||
Net
income
|
$
|
85.5
|
$
|
88.2
|
|||
Cash
flows from operating activities
|
$
|
6.7
|
$
|
8.4
|
|||
Cash
flows from financing activities
|
$
|
39.1
|
$
|
37.4
|
|||
Earnings
per common share - basic:
|
|||||||
Class
A Common Stock
|
$
|
0.38
|
$
|
0.39
|
|||
Class
B Common Stock
|
$
|
0.34
|
$
|
0.35
|
|||
Earnings
per common share - diluted
|
$
|
0.36
|
$
|
0.37
|
For
the Three
Months
Ended
May
31, 2005
|
||||
(in
millions, except per share data)
|
||||
Net
income, as reported
|
$
|
75.7
|
||
Add:
Stock-based employee compensation expense included in reported
net income,
net of related tax effects
|
-
|
|||
Deduct:
Total stock-based employee compensation expense determined under
fair
value based method for all awards, net of related tax
effects
|
(3.3
|
)
|
||
Pro
forma net income
|
$
|
72.4
|
||
Earnings
per common share - basic:
|
||||
Class
A Common Stock, as reported
|
$
|
0.34
|
||
Class
B Common Stock, as reported
|
$
|
0.31
|
||
Class
A Common Stock, pro forma
|
$
|
0.32
|
||
Class
B Common Stock, pro forma
|
$
|
0.29
|
||
Earnings
per common share - diluted, as reported
|
$
|
0.32
|
||
Earnings
per common share - diluted, pro forma
|
$
|
0.30
|
Number
of
Options
|
|
Weighted
Average
Exercise
Price
|
|
Weighted
Average
Remaining
Contractual
Life
|
|
Aggregate
Intrinsic
Value
|
|||||||
Options
outstanding, February 28, 2006
|
23,652,958
|
$
|
14.43
|
6.5
years
|
|||||||||
Granted
|
5,144,151
|
$
|
25.88
|
9.9
years
|
|||||||||
Exercised
|
(732,257
|
)
|
$
|
11.64
|
5.5
years
|
||||||||
Forfeited
|
(149,122
|
)
|
$
|
26.12
|
8.8
years
|
||||||||
Options
outstanding, May 31, 2006
|
27,915,730
|
$
|
16.55
|
6.9
years
|
$
|
242,783,907
|
|||||||
Options
exercisable, May 31, 2006
|
22,474,129
|
$
|
14.44
|
6.3
years
|
$
|
239,893,776
|
For
the Three Months
Ended
May 31,
|
|||||||
2006
|
|
2005
|
|||||
Weighted
average grant-date fair value of stock options granted
|
$
|
10.00
|
$
|
9.55
|
|||
Total
fair value of stock options vested
|
$
|
972,275
|
$
|
667,511
|
|||
Total
intrinsic value of stock options exercised
|
$
|
10,057,737
|
$
|
13,108,817
|
For
the Three Months
Ended
May 31,
|
|||||||
2006
|
|
2005
|
|||||
Expected
life
|
5.5
years
|
5.0
years
|
|||||
Expected
volatility
|
31.7
|
%
|
31.3
|
%
|
|||
Risk-free
interest rate
|
4.8
|
%
|
4.1
|
%
|
|||
Expected
dividend yield
|
0.0
|
%
|
0.0
|
%
|
11)
|
COMPREHENSIVE
INCOME (LOSS):
|
For
the Three Months
Ended
May 31,
|
|||||||
2006
|
|
2005
|
|||||
(in
millions)
|
|||||||
Net
income
|
$
|
85.5
|
$
|
75.7
|
|||
Other
comprehensive income (loss), net of tax:
|
|||||||
Foreign
currency translation adjustments, net of tax (expense) benefit
of ($7.6)
and $6.7, respectively
|
61.4
|
(113.4
|
)
|
||||
Cash
flow hedges:
|
|||||||
Net
derivative gains, net of tax benefit of $1.1 and $7.3,
respectively
|
(5.6
|
)
|
(12.7
|
)
|
|||
Reclassification
adjustments, net of tax benefit of $1.5 and $1.1,
respectively
|
(3.2
|
)
|
(2.2
|
)
|
|||
Net
cash flow hedges
|
(8.8
|
)
|
(14.9
|
)
|
|||
Minimum
pension liability adjustment, net of tax benefit (expense) of $2.7
and
($1.8), respectively
|
(6.3
|
)
|
4.1
|
||||
Total
comprehensive income (loss)
|
$
|
131.8
|
$
|
(48.5
|
)
|
Foreign
Currency
Translation
Adjustments
|
|
Net
Unrealized
Gains
on
Derivatives
|
|
Minimum
Pension
Liability
Adjustment
|
|
Accumulated
Other
Comprehensive
Income
(Loss)
|
|||||||
(in
millions)
|
|||||||||||||
Balance,
February
28, 2006
|
$
|
314.7
|
$
|
31.0
|
$
|
(98.3
|
)
|
$
|
247.4
|
||||
Current
period change
|
61.4
|
(8.8
|
)
|
(6.3
|
)
|
46.3
|
|||||||
Balance,
May 31, 2006
|
$
|
376.1
|
$
|
22.2
|
$
|
(104.6
|
)
|
$
|
293.7
|
12)
|
RESTRUCTURING
AND RELATED CHARGES:
|
Employee
Termination
Benefit
Costs
|
|
Contract
Termination
Costs
|
|
Facility
Consolidation/
Relocation
Costs
|
|
Total
|
|||||||
(in
millions)
|
|||||||||||||
Balance,
February 28, 2006
|
$
|
16.7
|
$
|
8.1
|
$
|
0.5
|
$
|
25.3
|
|||||
Restructuring
charges
|
2.5
|
(0.2
|
)
|
-
|
2.3
|
||||||||
Cash
expenditures
|
(4.3
|
)
|
(1.2
|
)
|
(0.1
|
)
|
(5.6
|
)
|
|||||
Foreign
currency adjustments
|
0.3
|
-
|
-
|
0.3
|
|||||||||
Balance,
May 31, 2006
|
$
|
15.2
|
$
|
6.7
|
$
|
0.4
|
$
|
22.3
|
13)
|
ACQUISITION-RELATED
INTEGRATION COSTS:
|
14)
|
CONDENSED
CONSOLIDATING FINANCIAL
INFORMATION:
|
Parent
Company
|
|
Subsidiary
Guarantors
|
|
Subsidiary
Nonguarantors
|
|
Eliminations
|
|
Consolidated
|
||||||||
(in
millions)
|
||||||||||||||||
Condensed
Consolidating Balance Sheet at May 31, 2006
|
||||||||||||||||
Current
assets:
|
||||||||||||||||
Cash
and cash investments
|
$
|
1.1
|
$
|
3.5
|
$
|
32.9
|
$
|
-
|
$
|
37.5
|
||||||
Accounts
receivable, net
|
207.5
|
214.1
|
432.6
|
-
|
854.2
|
|||||||||||
Inventories
|
37.5
|
999.7
|
726.6
|
(12.7
|
)
|
1,751.1
|
||||||||||
Prepaid
expenses and other
|
14.3
|
215.0
|
49.4
|
- |
278.7
|
|||||||||||
Intercompany
receivable (payable)
|
158.3
|
(729.9
|
)
|
571.6
|
-
|
-
|
||||||||||
Total
current assets
|
418.7
|
702.4
|
1,813.1
|
(12.7
|
)
|
2,921.5
|
||||||||||
Property,
plant and equipment, net
|
34.8
|
733.2
|
674.7
|
-
|
1,442.7
|
|||||||||||
Investments
in subsidiaries
|
5,223.1
|
1,781.8
|
-
|
(7,004.9
|
)
|
-
|
||||||||||
Goodwill
|
-
|
1,326.6
|
877.5
|
-
|
2,204.1
|
|||||||||||
Intangible
assets, net
|
-
|
548.4
|
338.5
|
-
|
886.9
|
|||||||||||
Other
assets, net
|
28.6
|
132.7
|
55.0
|
-
|
216.3
|
|||||||||||
Total
assets
|
$
|
5,705.2
|
$
|
5,225.1
|
$
|
3,758.8
|
$
|
(7,017.6
|
)
|
$
|
7,671.5
|
|||||
Current
liabilities:
|
||||||||||||||||
Notes
payable to banks
|
$
|
62.0
|
$
|
-
|
$
|
102.3
|
$
|
-
|
$
|
164.3
|
||||||
Current
maturities of long-term debt
|
200.0
|
4.4
|
9.9
|
-
|
214.3
|
|||||||||||
Accounts
payable
|
6.0
|
100.2
|
258.8
|
-
|
365.0
|
|||||||||||
Accrued
excise taxes
|
10.0
|
30.4
|
27.8
|
-
|
68.2
|
|||||||||||
Other
accrued expenses and liabilities
|
204.4
|
212.9
|
211.8
|
(3.8
|
)
|
625.3
|
||||||||||
Total
current liabilities
|
482.4
|
347.9
|
610.6
|
(3.8
|
)
|
1,437.1
|
||||||||||
Long-term
debt, less current maturities
|
2,453.5
|
11.9
|
16.4
|
-
|
2,481.8
|
|||||||||||
Deferred
income taxes
|
(17.3
|
)
|
368.3
|
22.6
|
-
|
373.6
|
||||||||||
Other
liabilities
|
4.7
|
81.6
|
172.7
|
-
|
259.0
|
Parent
Company
|
|
Subsidiary
Guarantors
|
|
Subsidiary
Nonguarantors
|
|
Eliminations
|
|
Consolidated
|
||||||||
(in
millions)
|
||||||||||||||||
Stockholders’
equity:
|
||||||||||||||||
Preferred
stock
|
-
|
-
|
-
|
-
|
- | |||||||||||
Class
A and Class B common stock
|
2.3
|
6.4
|
141.6
|
(148.0
|
)
|
2.3
|
||||||||||
Additional
paid-in capital
|
1,174.9
|
2,295.2
|
2,573.7
|
(4,868.9
|
)
|
1,174.9
|
||||||||||
Retained
earnings
|
1,686.4
|
1,940.2
|
47.8
|
(1,999.1
|
)
|
1,675.3
|
||||||||||
Accumulated
other comprehensive
(loss)
income
|
(55.5
|
)
|
173.6
|
173.4
|
2.2
|
293.7
|
||||||||||
Treasury
stock
|
(26.2
|
)
|
-
|
-
|
-
|
(26.2
|
)
|
|||||||||
Total
stockholders’ equity
|
2,781.9
|
4,415.4
|
2,936.5
|
(7,013.8
|
)
|
3,120.0
|
||||||||||
Total
liabilities and
stockholders’
equity
|
$
|
5,705.2
|
$
|
5,225.1
|
$
|
3,758.8
|
$
|
(7,017.6
|
)
|
$
|
7,671.5
|
|||||
Condensed
Consolidating Balance Sheet at February 28, 2006
|
||||||||||||||||
Current
assets:
|
||||||||||||||||
Cash
and cash investments
|
$
|
0.9
|
$
|
3.0
|
$
|
7.0
|
$
|
-
|
$
|
10.9
|
||||||
Accounts
receivable, net
|
233.0
|
196.1
|
342.8
|
-
|
771.9
|
|||||||||||
Inventories
|
38.6
|
1,033.3
|
647.4
|
(14.9
|
)
|
1,704.4
|
||||||||||
Prepaid
expenses and other
|
13.6
|
150.0
|
45.6
|
4.5
|
213.7
|
|||||||||||
Intercompany
receivable (payable)
|
136.4
|
(709.4
|
)
|
573.0
|
-
|
-
|
||||||||||
Total
current assets
|
422.5
|
673.0
|
1,615.8
|
(10.4
|
)
|
2,700.9
|
||||||||||
Property,
plant and equipment, net
|
35.6
|
729.6
|
660.1
|
-
|
1,425.3
|
|||||||||||
Investments
in subsidiaries
|
5,197.1
|
1,785.3
|
-
|
(6,982.4
|
)
|
-
|
||||||||||
Goodwill
|
-
|
1,325.1
|
868.5
|
-
|
2,193.6
|
|||||||||||
Intangible
assets, net
|
-
|
549.8
|
334.1
|
-
|
883.9
|
|||||||||||
Other
assets, net
|
24.9
|
118.2
|
53.8
|
-
|
196.9
|
|||||||||||
Total
assets
|
$
|
5,680.1
|
$
|
5,181.0
|
$
|
3,532.3
|
$
|
(6,992.8
|
)
|
$
|
7,400.6
|
|||||
Current
liabilities:
|
||||||||||||||||
Notes
payable to banks
|
$
|
54.5
|
$
|
-
|
$
|
25.4
|
$
|
-
|
$
|
79.9
|
||||||
Current
maturities of long-term debt
|
200.1
|
4.6
|
9.4
|
-
|
214.1
|
|||||||||||
Accounts
payable
|
4.4
|
123.6
|
184.8
|
-
|
312.8
|
|||||||||||
Accrued
excise taxes
|
15.6
|
42.8
|
18.3
|
-
|
76.7
|
|||||||||||
Other
accrued expenses and liabilities
|
230.6
|
163.9
|
220.4
|
(0.3
|
)
|
614.6
|
||||||||||
Total
current liabilities
|
505.2
|
334.9
|
458.3
|
(0.3
|
)
|
1,298.1
|
||||||||||
Long-term
debt, less current maturities
|
2,485.5
|
12.8
|
17.5
|
-
|
2,515.8
|
|||||||||||
Deferred
income taxes
|
(12.8
|
)
|
359.9
|
24.1
|
-
|
371.2
|
||||||||||
Other
liabilities
|
5.4
|
70.3
|
164.6
|
-
|
240.3
|
|||||||||||
Stockholders’
equity:
|
||||||||||||||||
Preferred
stock
|
-
|
-
|
-
|
-
|
-
|
|||||||||||
Class
A and Class B common stock
|
2.3
|
6.4
|
141.6
|
(148.0
|
)
|
2.3
|
||||||||||
Additional
paid-in capital
|
1,159.4
|
2,302.0
|
2,498.7
|
(4,800.7
|
)
|
1,159.4
|
||||||||||
Retained
earnings
|
1,606.0
|
1,934.9
|
98.7
|
(2,047.3
|
)
|
1,592.3
|
||||||||||
Accumulated
other comprehensive
(loss)
income
|
(44.7
|
)
|
159.8
|
128.8
|
3.5
|
247.4
|
||||||||||
Treasury
stock
|
(26.2
|
)
|
-
|
-
|
-
|
(26.2
|
)
|
|||||||||
Total
stockholders’ equity
|
2,696.8
|
4,403.1
|
2,867.8
|
(6,992.5
|
)
|
2,975.2
|
||||||||||
Total
liabilities and
stockholders’
equity
|
$
|
5,680.1
|
$
|
5,181.0
|
$
|
3,532.3
|
$
|
(6,992.8
|
)
|
$
|
7,400.6
|
|||||
Parent
Company
|
|
Subsidiary
Guarantors
|
|
Subsidiary
Nonguarantors
|
|
Eliminations
|
|
Consolidated
|
||||||||
(in
millions)
|
||||||||||||||||
Condensed
Consolidating Statement of Income for the Three Months Ended
May 31,
2006
|
||||||||||||||||
Sales
|
$
|
319.7
|
$
|
746.8
|
$
|
634.5
|
$
|
(270.8
|
)
|
$
|
1,430.2
|
|||||
Less
- excise taxes
|
(37.2
|
)
|
(112.8
|
)
|
(124.3
|
)
|
-
|
(274.3
|
)
|
|||||||
Net
sales
|
282.5
|
634.0
|
510.2
|
(270.8
|
)
|
1,155.9
|
||||||||||
Cost
of product sold
|
(219.0
|
)
|
(457.5
|
)
|
(435.5
|
)
|
274.7
|
(837.3
|
)
|
|||||||
Gross
profit
|
63.5
|
176.5
|
74.7
|
3.9
|
|
318.6
|
||||||||||
Selling,
general and administrative
expenses
|
(46.2
|
)
|
(62.8
|
)
|
(63.6
|
)
|
-
|
(172.6
|
)
|
|||||||
Restructuring and related charges | - | (2.3 | ) | - | - | (2.3 | ) | |||||||||
Acquisition-related
integration costs
|
-
|
(0.7
|
)
|
-
|
-
|
(0.7
|
)
|
|||||||||
Operating
income
|
17.3
|
110.7
|
11.1
|
3.9
|
143.0
|
|||||||||||
Equity
in earnings (loss) of equity
|