Quarterly report pursuant to Section 13 or 15(d)

Condensed Consolidating Financial Information

v3.8.0.1
Condensed Consolidating Financial Information
3 Months Ended
May 31, 2018
Condensed Financial Information of Parent Company Only Disclosure [Abstract]  
CONDENSED CONSOLIDATING FINANCIAL INFORMATION
CONDENSED CONSOLIDATING FINANCIAL INFORMATION:

The following information sets forth the condensed consolidating balance sheets as of May 31, 2018, and February 28, 2018, the condensed consolidating statements of comprehensive income for the three months ended May 31, 2018, and May 31, 2017, and the condensed consolidating statements of cash flows for the three months ended May 31, 2018, and May 31, 2017, 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. 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 2018 Annual Report, and include the accounting policies and the recently adopted accounting guidance described in Note 1 and 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 May 31, 2018
Current assets:
 
 
 
 
 
 
 
 
 
Cash and cash equivalents
$
5.3

 
$
2.8

 
$
201.9

 
$

 
$
210.0

Accounts receivable
0.7

 
20.4

 
806.8

 

 
827.9

Inventories
188.9

 
1,514.6

 
575.5

 
(210.6
)
 
2,068.4

Intercompany receivable
27,854.8

 
37,920.3

 
19,261.5

 
(85,036.6
)
 

Prepaid expenses and other
98.8

 
71.0

 
378.5

 
(49.8
)
 
498.5

Total current assets
28,148.5

 
39,529.1

 
21,224.2

 
(85,297.0
)
 
3,604.8

Property, plant and equipment
81.3

 
790.8

 
3,943.7

 

 
4,815.8

Investments in subsidiaries
23,892.2

 
447.7

 
6,017.9

 
(30,357.8
)
 

Goodwill

 
6,185.5

 
1,865.0

 

 
8,050.5

Intangible assets

 
716.9

 
2,584.7

 

 
3,301.6

Intercompany notes receivable
6,082.7

 
2,271.0

 

 
(8,353.7
)
 

Other assets
37.3

 
3.3

 
3,304.3

 
(20.9
)
 
3,324.0

Total assets
$
58,242.0

 
$
49,944.3

 
$
38,939.8

 
$
(124,029.4
)
 
$
23,096.7

 
 
 
 
 
 
 
 
 
 
Current liabilities:
 
 
 
 
 
 
 
 
 
Short-term borrowings
$
239.7

 
$

 
$
430.0

 
$

 
$
669.7

Current maturities of long-term debt
7.1

 
13.6

 
0.2

 

 
20.9

Accounts payable
55.2

 
106.0

 
489.1

 

 
650.3

Intercompany payable
37,872.8

 
29,665.1

 
17,498.7

 
(85,036.6
)
 

Other accrued expenses and liabilities
312.5

 
285.8

 
138.7

 
(87.4
)
 
649.6

Total current liabilities
38,487.3

 
30,070.5

 
18,556.7

 
(85,124.0
)
 
1,990.5

Long-term debt, less current maturities
9,168.9

 
16.6

 
230.9

 

 
9,416.4

Intercompany notes payable

 
4,886.6

 
3,467.1

 
(8,353.7
)
 

Other liabilities
29.4

 
513.1

 
602.4

 
(20.9
)
 
1,124.0

Total liabilities
47,685.6

 
35,486.8

 
22,857.1

 
(93,498.6
)
 
12,530.9

Total CBI stockholders’ equity
10,556.4

 
14,457.5

 
16,073.3

 
(30,530.8
)
 
10,556.4

Noncontrolling interests

 

 
9.4

 

 
9.4

Total stockholders’ equity
10,556.4

 
14,457.5

 
16,082.7

 
(30,530.8
)
 
10,565.8

Total liabilities and stockholders’ equity
$
58,242.0

 
$
49,944.3

 
$
38,939.8

 
$
(124,029.4
)
 
$
23,096.7

 
 
 
 
 
 
 
 
 
 
 
Parent
Company
 
Subsidiary
Guarantors
 
Subsidiary
Nonguarantors
 
Eliminations
 
Consolidated
(in millions)
 
 
 
 
 
 
 
 
 
Condensed Consolidating Balance Sheet at February 28, 2018
Current assets:
 
 
 
 
 
 
 
 
 
Cash and cash equivalents
$
4.6

 
$
4.4

 
$
81.3

 
$

 
$
90.3

Accounts receivable
2.0

 
12.6

 
761.6

 

 
776.2

Inventories
184.3

 
1,537.5

 
546.6

 
(184.4
)
 
2,084.0

Intercompany receivable
27,680.0

 
37,937.5

 
18,940.8

 
(84,558.3
)
 

Prepaid expenses and other
138.4

 
77.7

 
311.0

 
(3.6
)
 
523.5

Total current assets
28,009.3

 
39,569.7

 
20,641.3

 
(84,746.3
)
 
3,474.0

Property, plant and equipment
76.2

 
775.7

 
3,937.8

 

 
4,789.7

Investments in subsidiaries
20,948.7

 
442.0

 
5,876.9

 
(27,267.6
)
 

Goodwill

 
6,185.5

 
1,897.6

 

 
8,083.1

Intangible assets

 
718.2

 
2,586.6

 

 
3,304.8

Intercompany notes receivable
6,236.4

 
2,435.4

 

 
(8,671.8
)
 

Other assets
33.1

 
4.7

 
866.7

 
(17.4
)
 
887.1

Total assets
$
55,303.7

 
$
50,131.2

 
$
35,806.9

 
$
(120,703.1
)
 
$
20,538.7

 
 
 
 
 
 
 
 
 
 
Current liabilities:
 
 
 
 
 
 
 
 
 
Short-term borrowings
$
266.9

 
$

 
$
479.9

 
$

 
$
746.8

Current maturities of long-term debt
7.1

 
15.0

 
0.2

 

 
22.3

Accounts payable
63.4

 
128.3

 
400.5

 

 
592.2

Intercompany payable
37,408.2

 
30,029.7

 
17,120.4

 
(84,558.3
)
 

Other accrued expenses and liabilities
356.2

 
199.3

 
150.5

 
(27.7
)
 
678.3

Total current liabilities
38,101.8

 
30,372.3

 
18,151.5

 
(84,586.0
)
 
2,039.6

Long-term debt, less current maturities
9,166.9

 
9.1

 
241.6

 

 
9,417.6

Intercompany notes payable

 
5,029.2

 
3,642.6

 
(8,671.8
)
 

Other liabilities
59.9

 
493.5

 
553.8

 
(17.4
)
 
1,089.8

Total liabilities
47,328.6

 
35,904.1

 
22,589.5

 
(93,275.2
)
 
12,547.0

Total CBI stockholders’ equity
7,975.1

 
14,227.1

 
13,200.8

 
(27,427.9
)
 
7,975.1

Noncontrolling interests

 

 
16.6

 

 
16.6

Total stockholders’ equity
7,975.1

 
14,227.1

 
13,217.4

 
(27,427.9
)
 
7,991.7

Total liabilities and stockholders’ equity
$
55,303.7

 
$
50,131.2

 
$
35,806.9

 
$
(120,703.1
)
 
$
20,538.7



 
Parent
Company
 
Subsidiary
Guarantors
 
Subsidiary
Nonguarantors
 
Eliminations
 
Consolidated
(in millions)
 
 
 
 
 
 
 
 
 
Condensed Consolidating Statement of Comprehensive Income for the Three Months Ended May 31, 2018
Sales
$
682.6

 
$
1,881.2

 
$
1,007.6

 
$
(1,341.4
)
 
$
2,230.0

Excise taxes
(78.8
)
 
(100.9
)
 
(3.2
)
 

 
(182.9
)
Net sales
603.8

 
1,780.3

 
1,004.4

 
(1,341.4
)
 
2,047.1

Cost of product sold
(486.8
)
 
(1,322.1
)
 
(498.3
)
 
1,308.7

 
(998.5
)
Gross profit
117.0

 
458.2

 
506.1

 
(32.7
)
 
1,048.6

Selling, general and administrative expenses
(141.3
)
 
(238.7
)
 
(49.5
)
 
6.3

 
(423.2
)
Operating income (loss)
(24.3
)
 
219.5

 
456.6

 
(26.4
)
 
625.4

Equity in earnings (losses) of equity method investees and subsidiaries
910.6

 
(12.5
)
 
147.2

 
(1,040.6
)
 
4.7

Unrealized gain on equity securities

 

 
258.3

 

 
258.3

Net gain on sale of unconsolidated investment

 

 
101.4

 

 
101.4

Interest income

 

 
0.4

 

 
0.4

Intercompany interest income
67.6

 
158.8

 
0.9

 
(227.3
)
 

Interest expense
(80.3
)
 
(0.3
)
 
(7.6
)
 

 
(88.2
)
Intercompany interest expense
(133.6
)
 
(49.5
)
 
(44.2
)
 
227.3

 

Income before income taxes
740.0

 
316.0

 
913.0

 
(1,067.0
)
 
902.0

(Provision for) benefit from income taxes
3.8

 
(76.9
)
 
(96.1
)
 
13.5

 
(155.7
)
Net income
743.8


239.1

 
816.9

 
(1,053.5
)
 
746.3

Net income attributable to noncontrolling interests

 

 
(2.5
)
 

 
(2.5
)
Net income attributable to CBI
$
743.8

 
$
239.1

 
$
814.4

 
$
(1,053.5
)
 
$
743.8

 
 
 
 
 
 
 
 
 
 
Comprehensive income attributable to CBI
$
568.1

 
$
238.5

 
$
638.2

 
$
(876.7
)
 
$
568.1

 
 
 
 
 
 
 
 
 
 
Condensed Consolidating Statement of Comprehensive Income for the Three Months Ended May 31, 2017
Sales
$
694.9

 
$
1,750.1

 
$
903.3

 
$
(1,240.0
)
 
$
2,108.3

Excise taxes
(83.6
)
 
(93.4
)
 
(2.8
)
 

 
(179.8
)
Net sales
611.3

 
1,656.7

 
900.5

 
(1,240.0
)
 
1,928.5

Cost of product sold
(477.2
)
 
(1,214.6
)
 
(470.3
)
 
1,221.9

 
(940.2
)
Gross profit
134.1

 
442.1

 
430.2

 
(18.1
)
 
988.3

Selling, general and administrative expenses
(105.0
)
 
(281.5
)
 
(43.5
)
 
2.8

 
(427.2
)
Operating income
29.1

 
160.6

 
386.7

 
(15.3
)
 
561.1

Equity in earnings (losses) of equity method investees and subsidiaries
431.6

 
(11.5
)
 
114.3

 
(534.0
)
 
0.4

Interest income

 

 
0.1

 

 
0.1

Intercompany interest income
57.9

 
117.4

 
1.2

 
(176.5
)
 

Interest expense
(65.2
)
 
(0.3
)
 
(17.0
)
 

 
(82.5
)
Intercompany interest expense
(93.3
)
 
(49.3
)
 
(33.9
)
 
176.5

 

Loss on extinguishment of debt
(6.7
)
 

 

 

 
(6.7
)
Income before income taxes
353.4

 
216.9

 
451.4

 
(549.3
)
 
472.4

(Provision for) benefit from income taxes
45.1

 
(68.4
)
 
(31.9
)
 
(16.2
)
 
(71.4
)
Net income
398.5

 
148.5

 
419.5

 
(565.5
)
 
401.0

Net income attributable to noncontrolling interests

 

 
(2.5
)
 

 
(2.5
)
Net income attributable to CBI
$
398.5

 
$
148.5

 
$
417.0

 
$
(565.5
)
 
$
398.5

 
 
 
 
 
 
 
 
 
 
Comprehensive income attributable to CBI
$
586.0

 
$
149.4

 
$
605.7

 
$
(755.1
)
 
$
586.0

 
 
 
 
 
 
 
 
 
 


 
Parent
Company
 
Subsidiary
Guarantors
 
Subsidiary
Nonguarantors
 
Eliminations
 
Consolidated
(in millions)
 
 
 
 
 
 
 
 
 
Condensed Consolidating Statement of Cash Flows for the Three Months Ended May 31, 2018
Net cash provided by (used in) operating activities
$
(133.6
)
 
$
329.1

 
$
308.5

 
$

 
$
504.0

 
 
 
 
 
 
 
 
 
 
Cash flows from investing activities:
 
 
 
 
 
 
 
 
 
Purchases of property, plant and equipment
(3.9
)
 
(26.8
)
 
(137.5
)
 

 
(168.2
)
Proceeds from sale of unconsolidated investment

 

 
110.2

 

 
110.2

Net proceeds from intercompany notes
265.3

 
80.5

 
1.3

 
(347.1
)
 

Net returns of capital from equity affiliates
2.1

 

 

 
(2.1
)
 

Other investing activities
0.3

 
0.5

 
3.7

 

 
4.5

Net cash provided by (used in) investing activities
263.8

 
54.2

 
(22.3
)
 
(349.2
)
 
(53.5
)
 
 
 
 
 
 
 
 
 
 
Cash flows from financing activities:
 
 
 
 
 
 
 
 
 
Dividends paid to parent company

 

 
(17.0
)
 
17.0

 

Net contributions from equity affiliates

 
6.8

 
8.1

 
(14.9
)
 

Net proceeds from (repayments of) intercompany notes
132.3

 
(374.8
)
 
(104.6
)
 
347.1

 

Dividends paid
(140.5
)
 

 

 

 
(140.5
)
Purchases of treasury stock
(100.0
)
 

 

 

 
(100.0
)
Net repayments of short-term borrowings
(27.7
)
 

 
(49.8
)
 

 
(77.5
)
Payments of minimum tax withholdings on stock-based payment awards

 
(12.3
)
 
(0.6
)
 

 
(12.9
)
Principal payments of long-term debt
(1.2
)
 
(4.6
)
 
(0.1
)
 

 
(5.9
)
Proceeds from shares issued under equity compensation plans
7.6

 

 

 

 
7.6

Net cash used in financing activities
(129.5
)
 
(384.9
)
 
(164.0
)
 
349.2

 
(329.2
)
 
 
 
 
 
 
 
 
 
 
Effect of exchange rate changes on cash and cash equivalents

 

 
(1.6
)
 

 
(1.6
)
 
 
 
 
 
 
 
 
 
 
Net increase (decrease) in cash and cash equivalents
0.7

 
(1.6
)
 
120.6

 

 
119.7

Cash and cash equivalents, beginning of period
4.6

 
4.4

 
81.3

 

 
90.3

Cash and cash equivalents, end of period
$
5.3

 
$
2.8

 
$
201.9

 
$

 
$
210.0

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Parent
Company
 
Subsidiary
Guarantors
 
Subsidiary
Nonguarantors
 
Eliminations
 
Consolidated
(in millions)
 
 
 
 
 
 
 
 
 
Condensed Consolidating Statement of Cash Flows for the Three Months Ended May 31, 2017
Net cash provided by (used in) operating activities
$
(161.0
)
 
$
488.9

 
$
53.7

 
$

 
$
381.6

 
 
 
 
 
 
 
 
 
 
Cash flows from investing activities:
 
 
 
 
 
 
 
 
 
Purchases of property, plant and equipment
(4.8
)
 
(21.9
)
 
(190.4
)
 

 
(217.1
)
Net proceeds from intercompany notes
419.3

 

 
0.9

 
(420.2
)
 

Net investments in equity affiliates
(5.8
)
 

 

 
5.8

 

Other investing activities

 

 
(4.2
)
 

 
(4.2
)
Net cash provided by (used in) investing activities
408.7

 
(21.9
)

(193.7
)

(414.4
)

(221.3
)
 
 
 
 
 
 
 
 
 
 
Cash flows from financing activities:
 
 
 
 
 
 
 
 
 
Dividends paid to parent company

 

 
(8.0
)
 
8.0

 

Net contributions from equity affiliates

 
11.3

 
2.5

 
(13.8
)
 

Net proceeds from (repayments of) intercompany notes
(1.7
)
 
(450.9
)
 
32.4

 
420.2

 

Dividends paid
(100.5
)
 

 

 

 
(100.5
)
Net proceeds from short-term borrowings
254.0

 

 
127.3

 

 
381.3

Payments of minimum tax withholdings on stock-based payment awards

 
(21.4
)
 
(0.9
)
 

 
(22.3
)
Principal payments of long-term debt
(1,876.8
)
 
(4.9
)
 
(31.7
)
 

 
(1,913.4
)
Proceeds from shares issued under equity compensation plans
16.6

 

 

 

 
16.6

Payments of debt issuance costs
(11.8
)
 

 

 

 
(11.8
)
Proceeds from issuance of long-term debt
1,495.5

 

 
13.0

 

 
1,508.5

Net cash provided by (used in) financing activities
(224.7
)
 
(465.9
)
 
134.6

 
414.4

 
(141.6
)
 
 
 
 
 
 
 
 
 
 
Effect of exchange rate changes on cash
and cash equivalents

 

 
3.0

 

 
3.0

 
 
 
 
 
 
 
 
 
 
Net increase (decrease) in cash and cash equivalents
23.0

 
1.1

 
(2.4
)
 

 
21.7

Cash and cash equivalents, beginning of period
9.6

 
5.3

 
162.5

 

 
177.4

Cash and cash equivalents, end of period
$
32.6

 
$
6.4

 
$
160.1

 
$

 
$
199.1