Quarterly report pursuant to Section 13 or 15(d)

Condensed Consolidating Financial Information

v3.8.0.1
Condensed Consolidating Financial Information
9 Months Ended
Nov. 30, 2017
Condensed Financial Information of Parent Company Only Disclosure [Abstract]  
CONDENSED CONSOLIDATING FINANCIAL INFORMATION
CONDENSED CONSOLIDATING FINANCIAL INFORMATION:

In July 2017, certain subsidiaries of the Company which were previously included as Subsidiary Guarantors (as defined below) became Subsidiary Nonguarantors (as defined below) under the Company’s existing indentures. The following information sets forth the condensed consolidating balance sheets as of November 30, 2017, and February 28, 2017, the condensed consolidating statements of comprehensive income for the nine months and three months ended November 30, 2017, and November 30, 2016, and the condensed consolidating statements of cash flows for the nine months ended November 30, 2017, and November 30, 2016, for the parent company, our combined subsidiaries which guarantee our senior notes (“Subsidiary Guarantors”), our combined subsidiaries which are not Subsidiary Guarantors (primarily foreign subsidiaries) (“Subsidiary Nonguarantors”) and the Company, as if the new Subsidiary Guarantors and the new Subsidiary Nonguarantors had been in place as of and for all periods presented. The Subsidiary Guarantors are 100% owned, directly or indirectly, by the parent company and the guarantees are joint and several obligations of each of the Subsidiary Guarantors. The guarantees are full and unconditional, as those terms are used in Rule 3-10 of Regulation S-X, except that a Subsidiary Guarantor can be automatically released and relieved of its obligations under certain customary circumstances contained in the indentures governing our senior notes. These customary circumstances include, so long as other applicable provisions of the indentures are adhered to, the termination or release of a Subsidiary Guarantor’s guarantee of other indebtedness or upon the legal defeasance or covenant defeasance or satisfaction and discharge of our senior notes. Separate financial information for our Subsidiary Guarantors is not presented because we have determined that such financial information would not be material to investors. The accounting policies of the parent company, the Subsidiary Guarantors and the Subsidiary Nonguarantors are the same as those described for the Company in Note 1 of our consolidated financial statements included in our 2017 Annual Report, and include the recently adopted accounting guidance described in Note 2 herein. There are no restrictions on the ability of the Subsidiary Guarantors to transfer funds to us in the form of cash dividends, loans or advances.

 
Parent
Company
 
Subsidiary
Guarantors
 
Subsidiary
Nonguarantors
 
Eliminations
 
Consolidated
(in millions)
 
 
 
 
 
 
 
 
 
Condensed Consolidating Balance Sheet at November 30, 2017
Current assets:
 
 
 
 
 
 
 
 
 
Cash and cash equivalents
$
25.8

 
$
2.7

 
$
126.0

 
$

 
$
154.5

Accounts receivable
2.3

 
9.7

 
767.5

 

 
779.5

Inventories
184.9

 
1,589.2

 
536.1

 
(142.6
)
 
2,167.6

Intercompany receivable
26,244.6

 
36,443.5

 
17,989.2

 
(80,677.3
)
 

Prepaid expenses and other
103.2

 
56.3

 
355.4

 
(70.9
)
 
444.0

Total current assets
26,560.8

 
38,101.4

 
19,774.2

 
(80,890.8
)
 
3,545.6

Property, plant and equipment
74.0

 
728.5

 
3,748.5

 

 
4,551.0

Investments in subsidiaries
19,971.6

 
424.1

 
5,703.3

 
(26,099.0
)
 

Goodwill

 
6,185.5

 
1,900.2

 

 
8,085.7

Intangible assets

 
719.5

 
2,584.3

 

 
3,303.8

Intercompany notes receivable
5,984.9

 
2,412.5

 

 
(8,397.4
)
 

Other assets
16.9

 
4.3

 
599.8

 

 
621.0

Total assets
$
52,608.2

 
$
48,575.8

 
$
34,310.3

 
$
(115,387.2
)
 
$
20,107.1

 
 
 
 
 
 
 
 
 
 
Current liabilities:
 
 
 
 
 
 
 
 
 
Short-term borrowings
$
470.4

 
$

 
$
742.4

 
$

 
$
1,212.8

Current maturities of long-term debt
7.1

 
15.9

 
0.2

 

 
23.2

Accounts payable
46.0

 
288.4

 
407.8

 

 
742.2

Intercompany payable
35,929.2

 
28,537.0

 
16,211.1

 
(80,677.3
)
 

Other accrued expenses and liabilities
236.4

 
248.8

 
162.7

 
(90.2
)
 
557.7

Total current liabilities
36,689.1

 
29,090.1

 
17,524.2

 
(80,767.5
)
 
2,535.9

Long-term debt, less current maturities
7,880.6

 
11.5

 
222.1

 

 
8,114.2

Deferred income taxes
14.1

 
720.8

 
498.7

 

 
1,233.6

Intercompany notes payable

 
4,985.1

 
3,412.3

 
(8,397.4
)
 

Other liabilities
30.5

 
15.1

 
168.7

 

 
214.3

Total liabilities
44,614.3

 
34,822.6

 
21,826.0

 
(89,164.9
)
 
12,098.0

Total CBI stockholders’ equity
7,993.9

 
13,753.2

 
12,469.1

 
(26,222.3
)
 
7,993.9

Noncontrolling interests

 

 
15.2

 

 
15.2

Total stockholders’ equity
7,993.9

 
13,753.2

 
12,484.3

 
(26,222.3
)
 
8,009.1

Total liabilities and stockholders’ equity
$
52,608.2

 
$
48,575.8

 
$
34,310.3

 
$
(115,387.2
)
 
$
20,107.1

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Parent
Company
 
Subsidiary
Guarantors
 
Subsidiary
Nonguarantors
 
Eliminations
 
Consolidated
(in millions)
 
 
 
 
 
 
 
 
 
Condensed Consolidating Balance Sheet at February 28, 2017
Current assets:
 
 
 
 
 
 
 
 
 
Cash and cash equivalents
$
9.6

 
$
5.3

 
$
162.5

 
$

 
$
177.4

Accounts receivable
2.4

 
18.1

 
716.5

 

 
737.0

Inventories
162.3

 
1,456.6

 
502.8

 
(166.6
)
 
1,955.1

Intercompany receivable
21,894.2

 
30,298.2

 
14,985.4

 
(67,177.8
)
 

Prepaid expenses and other
40.4

 
69.1

 
235.2

 
15.8

 
360.5

Total current assets
22,108.9

 
31,847.3

 
16,602.4

 
(67,328.6
)
 
3,230.0

Property, plant and equipment
69.5

 
680.1

 
3,183.2

 

 
3,932.8

Investments in subsidiaries
16,965.2

 
267.2

 
5,370.3

 
(22,602.7
)
 

Goodwill

 
6,185.5

 
1,735.0

 

 
7,920.5

Intangible assets

 
810.2

 
2,567.5

 

 
3,377.7

Intercompany notes receivable
5,074.5

 
2,155.5

 

 
(7,230.0
)
 

Other assets
17.9

 
4.5

 
119.0

 

 
141.4

Total assets
$
44,236.0

 
$
41,950.3

 
$
29,577.4

 
$
(97,161.3
)
 
$
18,602.4

 
 
 
 
 
 
 
 
 
 
Current liabilities:
 
 
 
 
 
 
 
 
 
Short-term borrowings
$
231.0

 
$

 
$
375.5

 
$

 
$
606.5

Current maturities of long-term debt
767.9

 
16.2

 
126.8

 

 
910.9

Accounts payable
47.6

 
57.5

 
454.7

 

 
559.8

Intercompany payable
30,722.8

 
23,203.3

 
13,251.7

 
(67,177.8
)
 

Other accrued expenses and liabilities
270.2

 
203.5

 
175.6

 
(28.9
)
 
620.4

Total current liabilities
32,039.5

 
23,480.5

 
14,384.3

 
(67,206.7
)
 
2,697.6

Long-term debt, less current maturities
5,260.2

 
11.8

 
2,448.7

 

 
7,720.7

Deferred income taxes
13.3

 
698.0

 
422.3

 

 
1,133.6

Intercompany notes payable

 
4,639.4

 
2,590.6

 
(7,230.0
)
 

Other liabilities
31.8

 
8.9

 
125.0

 

 
165.7

Total liabilities
37,344.8

 
28,838.6

 
19,970.9

 
(74,436.7
)
 
11,717.6

Total CBI stockholders’ equity
6,891.2

 
13,111.7

 
9,612.9

 
(22,724.6
)
 
6,891.2

Noncontrolling interests

 

 
(6.4
)
 

 
(6.4
)
Total stockholders’ equity
6,891.2

 
13,111.7

 
9,606.5

 
(22,724.6
)
 
6,884.8

Total liabilities and stockholders’ equity
$
44,236.0

 
$
41,950.3

 
$
29,577.4

 
$
(97,161.3
)
 
$
18,602.4



 
Parent
Company
 
Subsidiary
Guarantors
 
Subsidiary
Nonguarantors
 
Eliminations
 
Consolidated
(in millions)
 
 
 
 
 
 
 
 
 
Condensed Consolidating Statement of Comprehensive Income for the Nine Months Ended November 30, 2017
Sales
$
2,174.3

 
$
5,277.5

 
$
2,638.1

 
$
(3,698.5
)
 
$
6,391.4

Excise taxes
(263.2
)
 
(299.7
)
 
(9.4
)
 

 
(572.3
)
Net sales
1,911.1

 
4,977.8

 
2,628.7

 
(3,698.5
)
 
5,819.1

Cost of product sold
(1,524.4
)
 
(3,686.0
)
 
(1,350.6
)
 
3,710.0

 
(2,851.0
)
Gross profit
386.7

 
1,291.8

 
1,278.1

 
11.5

 
2,968.1

Selling, general and administrative expenses
(347.1
)
 
(661.0
)
 
(202.1
)
 
10.9

 
(1,199.3
)
Operating income
39.6

 
630.8

 
1,076.0

 
22.4

 
1,768.8

Equity in earnings (losses) of equity method investees and subsidiaries
1,523.5

 
(14.6
)
 
365.4

 
(1,841.4
)
 
32.9

Unrealized gain on equity securities

 

 
216.8

 

 
216.8

Interest income
0.1

 

 
0.3

 

 
0.4

Intercompany interest income
177.1

 
365.2

 
3.3

 
(545.6
)
 

Interest expense
(198.6
)
 
(0.9
)
 
(46.0
)
 

 
(245.5
)
Intercompany interest expense
(293.1
)
 
(147.2
)
 
(105.3
)
 
545.6

 

Loss on write-off of debt issuance costs
(7.0
)
 

 
(12.1
)
 

 
(19.1
)
Income before income taxes
1,241.6

 
833.3

 
1,498.4

 
(1,819.0
)
 
1,754.3

(Provision for) benefit from income taxes
151.8

 
(291.2
)
 
(188.1
)
 
(24.8
)
 
(352.3
)
Net income
1,393.4


542.1

 
1,310.3

 
(1,843.8
)
 
1,402.0

Net income attributable to noncontrolling interests

 

 
(8.6
)
 

 
(8.6
)
Net income attributable to CBI
$
1,393.4

 
$
542.1

 
$
1,301.7

 
$
(1,843.8
)
 
$
1,393.4

 
 
 
 
 
 
 
 
 
 
Comprehensive income attributable to CBI
$
1,584.2

 
$
541.9

 
$
1,496.7

 
$
(2,038.6
)
 
$
1,584.2

 
 
 
 
 
 
 
 
 
 
Condensed Consolidating Statement of Comprehensive Income for the Nine Months Ended November 30, 2016
Sales
$
2,070.2

 
$
4,911.8

 
$
2,736.3

 
$
(3,449.8
)
 
$
6,268.5

Excise taxes
(260.0
)
 
(254.0
)
 
(51.0
)
 

 
(565.0
)
Net sales
1,810.2

 
4,657.8

 
2,685.3

 
(3,449.8
)
 
5,703.5

Cost of product sold
(1,472.9
)
 
(3,398.8
)
 
(1,529.4
)
 
3,439.3

 
(2,961.8
)
Gross profit
337.3

 
1,259.0

 
1,155.9

 
(10.5
)
 
2,741.7

Selling, general and administrative expenses
(310.4
)
 
(531.0
)
 
(224.2
)
 
21.5

 
(1,044.1
)
Operating income
26.9

 
728.0

 
931.7

 
11.0

 
1,697.6

Equity in earnings (losses) of equity method investees and subsidiaries
1,207.6

 
(19.9
)
 
325.1

 
(1,484.6
)
 
28.2

Interest income
0.4

 

 
0.9

 

 
1.3

Intercompany interest income
170.9

 
297.7

 
2.6

 
(471.2
)
 

Interest expense
(212.6
)
 
(1.2
)
 
(43.8
)
 

 
(257.6
)
Intercompany interest expense
(229.2
)
 
(149.2
)
 
(92.8
)
 
471.2

 

Income before income taxes
964.0

 
855.4

 
1,123.7

 
(1,473.6
)
 
1,469.5

(Provision for) benefit from income taxes
119.1

 
(322.3
)
 
(184.7
)
 
(4.3
)
 
(392.2
)
Net income
1,083.1

 
533.1

 
939.0

 
(1,477.9
)
 
1,077.3

Net loss attributable to noncontrolling interests

 

 
5.8

 

 
5.8

Net income attributable to CBI
$
1,083.1

 
$
533.1

 
$
944.8

 
$
(1,477.9
)
 
$
1,083.1

 
 
 
 
 
 
 
 
 
 
Comprehensive income attributable to CBI
$
938.9

 
$
533.2

 
$
792.1

 
$
(1,325.3
)
 
$
938.9

 
 
 
 
 
 
 
 
 
 
 
Parent
Company
 
Subsidiary
Guarantors
 
Subsidiary
Nonguarantors
 
Eliminations
 
Consolidated
(in millions)
 
 
 
 
 
 
 
 
 
Condensed Consolidating Statement of Comprehensive Income for the Three Months Ended November 30, 2017
Sales
$
755.9

 
$
1,583.4

 
$
795.6

 
$
(1,156.0
)
 
$
1,978.9

Excise taxes
(89.2
)
 
(87.1
)
 
(3.5
)
 

 
(179.8
)
Net sales
666.7

 
1,496.3

 
792.1

 
(1,156.0
)
 
1,799.1

Cost of product sold
(537.9
)
 
(1,111.3
)
 
(397.4
)
 
1,155.0

 
(891.6
)
Gross profit
128.8

 
385.0

 
394.7

 
(1.0
)
 
907.5

Selling, general and administrative expenses
(130.8
)
 
(186.9
)
 
(108.1
)
 
5.1

 
(420.7
)
Operating income (loss)
(2.0
)
 
198.1

 
286.6

 
4.1

 
486.8

Equity in earnings of equity method investees and subsidiaries
550.2

 
8.8

 
120.7

 
(647.4
)
 
32.3

Unrealized gain on equity securities

 

 
216.8

 

 
216.8

Interest income
0.1

 

 
0.1

 

 
0.2

Intercompany interest income
60.3

 
125.2

 
0.9

 
(186.4
)
 

Interest expense
(69.5
)
 
(0.4
)
 
(11.7
)
 

 
(81.6
)
Intercompany interest expense
(101.4
)
 
(48.7
)
 
(36.3
)
 
186.4

 

Loss on write-off of debt issuance costs

 

 
(10.3
)
 

 
(10.3
)
Income before income taxes
437.7

 
283.0

 
566.8

 
(643.3
)
 
644.2

(Provision for) benefit from income taxes
53.4

 
(98.1
)
 
(102.8
)
 
(2.0
)
 
(149.5
)
Net income
491.1

 
184.9

 
464.0

 
(645.3
)
 
494.7

Net income attributable to noncontrolling interests

 

 
(3.6
)
 

 
(3.6
)
Net income attributable to CBI
$
491.1

 
$
184.9

 
$
460.4

 
$
(645.3
)
 
$
491.1

 
 
 
 
 
 
 
 
 
 
Comprehensive income attributable to CBI
$
369.5

 
$
186.7

 
$
337.1

 
$
(523.8
)
 
$
369.5

 
 
 
 
 
 
 
 
 
 
Condensed Consolidating Statement of Comprehensive Income for the Three Months Ended November 30, 2016
Sales
$
734.7

 
$
1,510.4

 
$
862.0

 
$
(1,114.4
)
 
$
1,992.7

Excise taxes
(89.9
)
 
(73.7
)
 
(18.6
)
 

 
(182.2
)
Net sales
644.8

 
1,436.7

 
843.4

 
(1,114.4
)
 
1,810.5

Cost of product sold
(522.4
)
 
(1,032.5
)
 
(471.1
)
 
1,106.9

 
(919.1
)
Gross profit
122.4

 
404.2

 
372.3

 
(7.5
)
 
891.4

Selling, general and administrative expenses
(109.8
)
 
(174.7
)
 
(83.7
)
 
10.8

 
(357.4
)
Operating income
12.6

 
229.5

 
288.6

 
3.3

 
534.0

Equity in earnings of equity method investees and subsidiaries
431.2

 
3.3

 
116.2

 
(523.2
)
 
27.5

Interest income

 

 
0.3

 

 
0.3

Intercompany interest income
56.2

 
103.1

 
0.8

 
(160.1
)
 

Interest expense
(61.5
)
 
(0.4
)
 
(16.0
)
 

 
(77.9
)
Intercompany interest expense
(80.2
)
 
(48.2
)
 
(31.7
)
 
160.1

 

Income before income taxes
358.3

 
287.3

 
358.2

 
(519.9
)
 
483.9

(Provision for) benefit from income taxes
47.6

 
(105.1
)
 
(21.3
)
 
(0.1
)
 
(78.9
)
Net income
405.9

 
182.2

 
336.9

 
(520.0
)
 
405.0

Net loss attributable to noncontrolling interests

 

 
0.9

 

 
0.9

Net income attributable to CBI
$
405.9

 
$
182.2

 
$
337.8

 
$
(520.0
)
 
$
405.9

 
 
 
 
 
 
 
 
 
 
Comprehensive income attributable to CBI
$
252.3

 
$
183.0

 
$
176.6

 
$
(359.6
)
 
$
252.3



 
Parent
Company
 
Subsidiary
Guarantors
 
Subsidiary
Nonguarantors
 
Eliminations
 
Consolidated
(in millions)
 
 
 
 
 
 
 
 
 
Condensed Consolidating Statement of Cash Flows for the Nine Months Ended November 30, 2017
Net cash provided by (used in) operating activities
$
(315.2
)
 
$
1,060.7

 
$
722.9

 
$

 
$
1,468.4

 
 
 
 
 
 
 
 
 
 
Cash flows from investing activities:
 
 
 
 
 
 
 
 
 
Purchases of property, plant and equipment
(15.4
)
 
(83.9
)
 
(606.3
)
 

 
(705.6
)
Investment in equity securities

 

 
(191.3
)
 

 
(191.3
)
Purchases of businesses, net of cash acquired

 
(70.9
)
 
(61.0
)
 

 
(131.9
)
Payments related to sale of business

 

 
(5.0
)
 

 
(5.0
)
Net proceeds from intercompany notes
134.5

 

 
2.8

 
(137.3
)
 

Net investments in equity affiliates
(1,350.6
)
 

 

 
1,350.6

 

Other investing activities
(6.2
)
 

 
1.7

 

 
(4.5
)
Net cash used in investing activities
(1,237.7
)
 
(154.8
)
 
(859.1
)
 
1,213.3

 
(1,038.3
)
 
 
 
 
 
 
 
 
 
 
Cash flows from financing activities:
 
 
 
 
 
 
 
 
 
Dividends paid to parent company

 

 
(33.0
)
 
33.0

 

Net contributions from (returns of capital to) equity affiliates


 
(0.2
)
 
1,383.8

 
(1,383.6
)
 

Net proceeds from (repayments of) intercompany notes
(11.6
)
 
(871.9
)
 
746.2

 
137.3

 

Principal payments of long-term debt
(2,116.6
)
 
(14.5
)
 
(4,391.7
)
 

 
(6,522.8
)
Dividends paid
(301.1
)
 

 

 

 
(301.1
)
Purchases of treasury stock
(239.2
)
 

 

 

 
(239.2
)
Payments of debt issuance costs
(28.9
)
 

 
(3.5
)
 

 
(32.4
)
Payments of minimum tax withholdings on stock-based payment awards

 
(21.9
)
 
(1.0
)
 

 
(22.9
)
Proceeds from issuance of long-term debt
3,990.4

 

 
2,027.5

 

 
6,017.9

Net proceeds from short-term borrowings
238.6

 

 
366.3

 

 
604.9

Proceeds from shares issued under equity compensation plans
37.5

 

 

 

 
37.5

Net cash provided by (used in) financing activities
1,569.1

 
(908.5
)
 
94.6

 
(1,213.3
)
 
(458.1
)
 
 
 
 
 
 
 
 
 
 
Effect of exchange rate changes on cash and cash equivalents

 

 
5.1

 

 
5.1

 
 
 
 
 
 
 
 
 
 
Net increase (decrease) in cash and cash equivalents
16.2

 
(2.6
)
 
(36.5
)
 

 
(22.9
)
Cash and cash equivalents, beginning of period
9.6

 
5.3

 
162.5

 

 
177.4

Cash and cash equivalents, end of period
$
25.8

 
$
2.7

 
$
126.0

 
$

 
$
154.5

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Parent
Company
 
Subsidiary
Guarantors
 
Subsidiary
Nonguarantors
 
Eliminations
 
Consolidated
(in millions)
 
 
 
 
 
 
 
 
 
Condensed Consolidating Statement of Cash Flows for the Nine Months Ended November 30, 2016
Net cash provided by operating activities
$
360.3

 
$
773.3

 
$
937.5

 
$
(655.4
)
 
$
1,415.7

 
 
 
 
 
 
 
 
 
 
Cash flows from investing activities:
 
 
 
 
 
 
 
 
 
Purchases of property, plant and equipment
(6.3
)
 
(51.9
)
 
(533.4
)
 

 
(591.6
)
Purchase of businesses, net of cash acquired

 

 
(542.2
)
 

 
(542.2
)
Net proceeds from (repayments of) intercompany notes
259.1

 

 
(2.6
)
 
(256.5
)
 

Net returns of capital from equity affiliates
198.3

 

 

 
(198.3
)
 

Other investing activities
0.2

 
0.2

 
(15.7
)
 

 
(15.3
)
Net cash provided by (used in) investing activities
451.3

 
(51.7
)

(1,093.9
)

(454.8
)

(1,149.1
)
 
 
 
 
 
 
 
 
 
 
Cash flows from financing activities:
 
 
 
 
 
 
 
 
 
Dividends paid to parent company

 

 
(850.4
)
 
850.4

 

Net contributions from (returns of capital to) equity affiliates

 
(8.6
)
 
5.3

 
3.3

 

Net proceeds from (repayments of) intercompany notes
186.3

 
(631.9
)
 
189.1

 
256.5

 

Principal payments of long-term debt
(751.2
)
 
(15.8
)
 
(140.7
)
 

 
(907.7
)
Dividends paid
(238.3
)
 

 

 

 
(238.3
)
Purchases of treasury stock
(372.6
)
 

 

 

 
(372.6
)
Payments of debt issuance costs

 

 
(6.6
)
 

 
(6.6
)
Payments of minimum tax withholdings on stock-based payment awards

 
(61.7
)
 
(5.2
)
 

 
(66.9
)
Proceeds from issuance of long-term debt

 

 
1,350.1

 

 
1,350.1

Net proceeds from (repayments of) short-term borrowings
220.0

 

 
(275.9
)
 

 
(55.9
)
Proceeds from shares issued under equity compensation plans
39.3

 

 

 

 
39.3

Excess tax benefits from stock-based payment awards
112.2

 

 

 

 
112.2

Net cash provided by (used in) financing activities
(804.3
)
 
(718.0
)
 
265.7

 
1,110.2

 
(146.4
)
 
 
 
 
 
 
 
 
 
 
Effect of exchange rate changes on cash
and cash equivalents

 

 
(6.0
)
 

 
(6.0
)
 
 
 
 
 
 
 
 
 
 
Net increase in cash and cash equivalents
7.3

 
3.6

 
103.3

 

 
114.2

Cash and cash equivalents, beginning of period
6.0

 
3.6

 
73.5

 

 
83.1

Cash and cash equivalents, end of period
$
13.3

 
$
7.2

 
$
176.8

 
$

 
$
197.3