| Comparable adjustments |
Comparable Adjustments that impacted comparability in our segment operating income (loss) for each period are as follows:
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For the Nine Months Ended November 30, |
|
For the Three Months Ended November 30, |
|
2017 |
|
2016 |
|
2017 |
|
2016 |
(in millions) |
|
|
|
|
|
|
|
Cost of product sold |
|
|
|
|
|
|
|
Flow through of inventory step-up |
$ |
(17.0 |
) |
|
$ |
(16.4 |
) |
|
$ |
(7.2 |
) |
|
$ |
(4.9 |
) |
Settlements of undesignated commodity derivative contracts |
4.6 |
|
|
20.3 |
|
|
(0.1 |
) |
|
5.2 |
|
Net gain on undesignated commodity derivative contracts |
4.3 |
|
|
14.4 |
|
|
3.5 |
|
|
6.7 |
|
Amortization of favorable interim supply agreement |
— |
|
|
(2.2 |
) |
|
— |
|
|
— |
|
Total cost of product sold |
(8.1 |
) |
|
16.1 |
|
|
(3.8 |
) |
|
7.0 |
|
|
|
|
|
|
|
|
|
Selling, general and administrative expenses |
|
|
|
|
|
|
|
Impairment of intangible assets |
(86.8 |
) |
|
— |
|
|
— |
|
|
— |
|
Loss on contract termination (1)
|
(59.0 |
) |
|
— |
|
|
(59.0 |
) |
|
— |
|
Transaction, integration and other acquisition-related costs |
(6.8 |
) |
|
(11.0 |
) |
|
(4.5 |
) |
|
(5.7 |
) |
Net gain (costs) associated with the Canadian Divestiture and related activities |
(3.2 |
) |
|
(4.5 |
) |
|
— |
|
|
3.6 |
|
Other gains (losses) (2)
|
4.0 |
|
|
(3.5 |
) |
|
4.0 |
|
|
(2.5 |
) |
Total selling, general and administrative expenses |
(151.8 |
) |
|
(19.0 |
) |
|
(59.5 |
) |
|
(4.6 |
) |
Comparable Adjustments, Operating income (loss) |
$ |
(159.9 |
) |
|
$ |
(2.9 |
) |
|
$ |
(63.3 |
) |
|
$ |
2.4 |
|
|
|
(1) |
Represents a loss incurred in connection with the early termination of a beer glass supply contract with Owens-Illinois, a related-party entity with which we have an equally-owned joint venture which owns and operates a glass production plant located adjacent to our brewery located in Nava, Coahuila, Mexico (the “Nava Brewery”). |
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(2) |
Includes a gain of $8.1 million for the nine months and three months ended November 30, 2017, in connection with the reduction in estimated fair value of a contingent liability associated with a prior period acquisition.
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| Segment information |
Segment information is as follows:
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For the Nine Months Ended November 30, |
|
For the Three Months Ended November 30, |
|
2017 |
|
2016 |
|
2017 |
|
2016 |
(in millions) |
|
|
|
|
|
|
|
Beer |
|
|
|
|
|
|
|
Net sales |
$ |
3,661.3 |
|
|
$ |
3,338.1 |
|
|
$ |
1,040.1 |
|
|
$ |
964.6 |
|
Segment operating income |
$ |
1,459.2 |
|
|
$ |
1,195.7 |
|
|
$ |
392.4 |
|
|
$ |
335.7 |
|
Long-lived tangible assets |
$ |
3,410.7 |
|
|
$ |
2,506.6 |
|
|
$ |
3,410.7 |
|
|
$ |
2,506.6 |
|
Total assets |
$ |
12,025.3 |
|
|
$ |
10,351.5 |
|
|
$ |
12,025.3 |
|
|
$ |
10,351.5 |
|
Capital expenditures |
$ |
593.7 |
|
|
$ |
494.9 |
|
|
$ |
160.6 |
|
|
$ |
191.0 |
|
Depreciation and amortization |
$ |
121.6 |
|
|
$ |
82.7 |
|
|
$ |
41.7 |
|
|
$ |
29.5 |
|
|
|
|
|
|
|
|
|
Wine and Spirits |
|
|
|
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|
|
|
Net sales: |
|
|
|
|
|
|
|
Wine |
$ |
1,882.3 |
|
|
$ |
2,102.8 |
|
|
$ |
666.6 |
|
|
$ |
754.3 |
|
Spirits |
275.5 |
|
|
262.6 |
|
|
92.4 |
|
|
91.6 |
|
Net sales |
$ |
2,157.8 |
|
|
$ |
2,365.4 |
|
|
$ |
759.0 |
|
|
$ |
845.9 |
|
Segment operating income |
$ |
589.7 |
|
|
$ |
604.7 |
|
|
$ |
199.0 |
|
|
$ |
231.0 |
|
Income from unconsolidated investments |
$ |
32.3 |
|
|
$ |
28.4 |
|
|
$ |
32.1 |
|
|
$ |
27.7 |
|
Long-lived tangible assets |
$ |
1,024.7 |
|
|
$ |
1,069.7 |
|
|
$ |
1,024.7 |
|
|
$ |
1,069.7 |
|
Investments in equity method investees |
$ |
97.3 |
|
|
$ |
92.9 |
|
|
$ |
97.3 |
|
|
$ |
92.9 |
|
Total assets |
$ |
7,268.7 |
|
|
$ |
7,616.3 |
|
|
$ |
7,268.7 |
|
|
$ |
7,616.3 |
|
Capital expenditures |
$ |
98.2 |
|
|
$ |
55.3 |
|
|
$ |
35.2 |
|
|
$ |
25.7 |
|
Depreciation and amortization |
$ |
69.9 |
|
|
$ |
76.0 |
|
|
$ |
24.1 |
|
|
$ |
25.8 |
|
|
|
|
|
|
|
|
|
Corporate Operations and Other |
|
|
|
|
|
|
|
Segment operating loss |
$ |
(120.2 |
) |
|
$ |
(99.9 |
) |
|
$ |
(41.3 |
) |
|
$ |
(35.1 |
) |
Income (loss) from unconsolidated investments |
$ |
0.5 |
|
|
$ |
(0.2 |
) |
|
$ |
0.1 |
|
|
$ |
(0.2 |
) |
Long-lived tangible assets |
$ |
115.6 |
|
|
$ |
131.7 |
|
|
$ |
115.6 |
|
|
$ |
131.7 |
|
Investments in equity method investees |
$ |
21.6 |
|
|
$ |
22.8 |
|
|
$ |
21.6 |
|
|
$ |
22.8 |
|
Total assets |
$ |
813.1 |
|
|
$ |
352.3 |
|
|
$ |
813.1 |
|
|
$ |
352.3 |
|
Capital expenditures |
$ |
13.7 |
|
|
$ |
41.4 |
|
|
$ |
4.7 |
|
|
$ |
6.3 |
|
Depreciation and amortization |
$ |
27.3 |
|
|
$ |
22.8 |
|
|
$ |
9.2 |
|
|
$ |
8.2 |
|
|
|
|
|
|
|
|
|
Comparable Adjustments |
|
|
|
|
|
|
|
Operating income (loss) |
$ |
(159.9 |
) |
|
$ |
(2.9 |
) |
|
$ |
(63.3 |
) |
|
$ |
2.4 |
|
Income from unconsolidated investments |
$ |
216.9 |
|
|
$ |
— |
|
|
$ |
216.9 |
|
|
$ |
— |
|
Depreciation and amortization |
$ |
— |
|
|
$ |
2.2 |
|
|
$ |
— |
|
|
$ |
— |
|
|
|
|
|
|
|
|
|
Consolidated |
|
|
|
|
|
|
|
Net sales |
$ |
5,819.1 |
|
|
$ |
5,703.5 |
|
|
$ |
1,799.1 |
|
|
$ |
1,810.5 |
|
Operating income |
$ |
1,768.8 |
|
|
$ |
1,697.6 |
|
|
$ |
486.8 |
|
|
$ |
534.0 |
|
Income from unconsolidated investments |
$ |
249.7 |
|
|
$ |
28.2 |
|
|
$ |
249.1 |
|
|
$ |
27.5 |
|
Long-lived tangible assets |
$ |
4,551.0 |
|
|
$ |
3,708.0 |
|
|
$ |
4,551.0 |
|
|
$ |
3,708.0 |
|
Investments in equity method investees |
$ |
118.9 |
|
|
$ |
115.7 |
|
|
$ |
118.9 |
|
|
$ |
115.7 |
|
Total assets |
$ |
20,107.1 |
|
|
$ |
18,320.1 |
|
|
$ |
20,107.1 |
|
|
$ |
18,320.1 |
|
Capital expenditures |
$ |
705.6 |
|
|
$ |
591.6 |
|
|
$ |
200.5 |
|
|
$ |
223.0 |
|
Depreciation and amortization |
$ |
218.8 |
|
|
$ |
183.7 |
|
|
$ |
75.0 |
|
|
$ |
63.5 |
|
|