| Comparable adjustments |
Comparable Adjustments that impacted comparability in our segment operating income (loss) for each period are as follows:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
For the Nine Months Ended November 30, |
|
For the Three Months Ended November 30, |
|
2018 |
|
2017 |
|
2018 |
|
2017 |
(in millions) |
|
|
|
|
|
|
|
Cost of product sold |
|
|
|
|
|
|
|
Settlements of undesignated commodity derivative contracts |
$ |
(7.3 |
) |
|
$ |
4.6 |
|
|
$ |
(2.2 |
) |
|
$ |
(0.1 |
) |
Accelerated depreciation |
(6.5 |
) |
|
— |
|
|
(1.5 |
) |
|
— |
|
Net gain (loss) on undesignated commodity derivative contracts |
(5.1 |
) |
|
4.3 |
|
|
(14.7 |
) |
|
3.5 |
|
Flow through of inventory step-up |
(3.6 |
) |
|
(17.0 |
) |
|
(2.2 |
) |
|
(7.2 |
) |
Loss on inventory write-down |
(2.8 |
) |
|
— |
|
|
(1.3 |
) |
|
— |
|
Total cost of product sold |
(25.3 |
) |
|
(8.1 |
) |
|
(21.9 |
) |
|
(3.8 |
) |
|
|
|
|
|
|
|
|
Selling, general and administrative expenses |
|
|
|
|
|
|
|
Net loss on foreign currency derivative contracts associated with acquisition of investment |
(32.6 |
) |
|
— |
|
|
(25.5 |
) |
|
— |
|
Deferred compensation |
(16.3 |
) |
|
— |
|
|
— |
|
|
— |
|
Restructuring and other strategic business development costs |
(10.9 |
) |
|
(7.5 |
) |
|
(2.3 |
) |
|
(4.1 |
) |
Transaction, integration and other acquisition-related costs |
(9.1 |
) |
|
(6.8 |
) |
|
(8.1 |
) |
|
(4.5 |
) |
Impairment of intangible assets |
— |
|
|
(86.8 |
) |
|
— |
|
|
— |
|
Loss on contract termination (1)
|
— |
|
|
(59.0 |
) |
|
— |
|
|
(59.0 |
) |
Costs associated with the sale of the Canadian wine business and related activities |
— |
|
|
(3.2 |
) |
|
— |
|
|
— |
|
Other gains (2)
|
10.9 |
|
|
11.5 |
|
|
2.4 |
|
|
8.1 |
|
Total selling, general and administrative expenses |
(58.0 |
) |
|
(151.8 |
) |
|
(33.5 |
) |
|
(59.5 |
) |
Comparable Adjustments, Operating loss |
$ |
(83.3 |
) |
|
$ |
(159.9 |
) |
|
$ |
(55.4 |
) |
|
$ |
(63.3 |
) |
|
|
(1) |
Represents a loss incurred in connection with the early termination of a beer glass supply contract with Owens-Illinois. |
|
|
(2) |
Includes a gain of $8.5 million for the nine months ended November 30, 2018, in connection with the sale of certain non-core assets and 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.
|
|
| 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, |
|
2018 |
|
2017 |
|
2018 |
|
2017 |
(in millions) |
|
|
|
|
|
|
|
Beer |
|
|
|
|
|
|
|
Net sales |
$ |
4,112.0 |
|
|
$ |
3,663.4 |
|
|
$ |
1,209.8 |
|
|
$ |
1,042.5 |
|
Segment operating income |
$ |
1,601.5 |
|
|
$ |
1,461.3 |
|
|
$ |
450.9 |
|
|
$ |
394.8 |
|
Long-lived tangible assets |
$ |
3,810.1 |
|
|
$ |
3,410.7 |
|
|
$ |
3,810.1 |
|
|
$ |
3,410.7 |
|
Total assets |
$ |
14,654.6 |
|
|
$ |
12,025.3 |
|
|
$ |
14,654.6 |
|
|
$ |
12,025.3 |
|
Capital expenditures |
$ |
507.3 |
|
|
$ |
593.7 |
|
|
$ |
211.0 |
|
|
$ |
160.6 |
|
Depreciation and amortization |
$ |
152.0 |
|
|
$ |
121.6 |
|
|
$ |
51.5 |
|
|
$ |
41.7 |
|
|
|
|
|
|
|
|
|
Wine and Spirits |
|
|
|
|
|
|
|
Net sales: |
|
|
|
|
|
|
|
Wine |
$ |
1,933.1 |
|
|
$ |
1,882.7 |
|
|
$ |
670.3 |
|
|
$ |
666.6 |
|
Spirits |
273.7 |
|
|
272.2 |
|
|
92.5 |
|
|
92.8 |
|
Net sales |
$ |
2,206.8 |
|
|
$ |
2,154.9 |
|
|
$ |
762.8 |
|
|
$ |
759.4 |
|
Segment operating income |
$ |
575.2 |
|
|
$ |
586.8 |
|
|
$ |
206.0 |
|
|
$ |
199.4 |
|
Income from unconsolidated investments |
$ |
32.2 |
|
|
$ |
32.3 |
|
|
$ |
28.4 |
|
|
$ |
32.1 |
|
Long-lived tangible assets |
$ |
1,093.5 |
|
|
$ |
1,024.7 |
|
|
$ |
1,093.5 |
|
|
$ |
1,024.7 |
|
Equity method investments |
$ |
97.8 |
|
|
$ |
97.3 |
|
|
$ |
97.8 |
|
|
$ |
97.3 |
|
Total assets |
$ |
7,366.0 |
|
|
$ |
7,268.7 |
|
|
$ |
7,366.0 |
|
|
$ |
7,268.7 |
|
Capital expenditures |
$ |
91.1 |
|
|
$ |
98.2 |
|
|
$ |
32.3 |
|
|
$ |
35.2 |
|
Depreciation and amortization |
$ |
73.4 |
|
|
$ |
69.9 |
|
|
$ |
24.2 |
|
|
$ |
24.1 |
|
|
|
|
|
|
|
|
|
Corporate Operations and Other |
|
|
|
|
|
|
|
Segment operating loss |
$ |
(146.5 |
) |
|
$ |
(120.2 |
) |
|
$ |
(45.0 |
) |
|
$ |
(41.3 |
) |
Income (loss) from unconsolidated investments |
$ |
(0.3 |
) |
|
$ |
0.5 |
|
|
$ |
0.9 |
|
|
$ |
0.1 |
|
Long-lived tangible assets |
$ |
82.7 |
|
|
$ |
115.6 |
|
|
$ |
82.7 |
|
|
$ |
115.6 |
|
Equity method investments |
$ |
3,485.2 |
|
|
$ |
21.6 |
|
|
$ |
3,485.2 |
|
|
$ |
21.6 |
|
Total assets |
$ |
5,869.8 |
|
|
$ |
813.1 |
|
|
$ |
5,869.8 |
|
|
$ |
813.1 |
|
Capital expenditures |
$ |
21.9 |
|
|
$ |
13.7 |
|
|
$ |
6.4 |
|
|
$ |
4.7 |
|
Depreciation and amortization |
$ |
22.7 |
|
|
$ |
27.3 |
|
|
$ |
5.6 |
|
|
$ |
9.2 |
|
|
|
|
|
|
|
|
|
Comparable Adjustments |
|
|
|
|
|
|
|
Operating loss |
$ |
(83.3 |
) |
|
$ |
(159.9 |
) |
|
$ |
(55.4 |
) |
|
$ |
(63.3 |
) |
Income (loss) from unconsolidated investments |
$ |
886.3 |
|
|
$ |
216.9 |
|
|
$ |
(163.9 |
) |
|
$ |
216.9 |
|
Depreciation and amortization |
$ |
6.5 |
|
|
$ |
— |
|
|
$ |
1.5 |
|
|
$ |
— |
|
|
|
|
|
|
|
|
|
Consolidated |
|
|
|
|
|
|
|
Net sales |
$ |
6,318.8 |
|
|
$ |
5,818.3 |
|
|
$ |
1,972.6 |
|
|
$ |
1,801.9 |
|
Operating income |
$ |
1,946.9 |
|
|
$ |
1,768.0 |
|
|
$ |
556.5 |
|
|
$ |
489.6 |
|
Income (loss) from unconsolidated investments (1)
|
$ |
918.2 |
|
|
$ |
249.7 |
|
|
$ |
(134.6 |
) |
|
$ |
249.1 |
|
Long-lived tangible assets |
$ |
4,986.3 |
|
|
$ |
4,551.0 |
|
|
$ |
4,986.3 |
|
|
$ |
4,551.0 |
|
Equity method investments |
$ |
3,583.0 |
|
|
$ |
118.9 |
|
|
$ |
3,583.0 |
|
|
$ |
118.9 |
|
Total assets |
$ |
27,890.4 |
|
|
$ |
20,107.1 |
|
|
$ |
27,890.4 |
|
|
$ |
20,107.1 |
|
Capital expenditures |
$ |
620.3 |
|
|
$ |
705.6 |
|
|
$ |
249.7 |
|
|
$ |
200.5 |
|
Depreciation and amortization |
$ |
254.6 |
|
|
$ |
218.8 |
|
|
$ |
82.8 |
|
|
$ |
75.0 |
|
(1) Income (loss) from unconsolidated investments consists of:
|
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|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
For the Nine Months Ended |
|
For the Three Months Ended |
|
November 30,
2018 |
|
November 30,
2017 |
|
November 30,
2018 |
|
November 30,
2017 |
(in millions) |
|
|
|
|
|
|
|
Unrealized net gain (loss) on securities measured at fair value and related activities |
$ |
786.5 |
|
|
$ |
216.8 |
|
|
$ |
(163.9 |
) |
|
$ |
216.8 |
|
Net gain on sale of unconsolidated investment |
99.8 |
|
|
— |
|
|
— |
|
|
— |
|
Equity in earnings from equity method investees |
31.9 |
|
|
32.8 |
|
|
29.3 |
|
|
32.2 |
|
Net gain on foreign currency derivative contracts associated with November 2017 Canopy securities measured at fair value |
— |
|
|
0.1 |
|
|
— |
|
|
0.1 |
|
|
$ |
918.2 |
|
|
$ |
249.7 |
|
|
$ |
(134.6 |
) |
|
$ |
249.1 |
|
|