| Comparable adjustments |
Comparable Adjustments that impacted comparability in our segment operating income (loss) for each period are as follows:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
For the Years Ended |
|
February 28,
2019 |
|
February 28,
2018 |
|
February 28,
2017 |
(in millions) |
|
|
|
|
|
Cost of product sold |
|
|
|
|
|
Accelerated depreciation |
$ |
(8.9 |
) |
|
$ |
— |
|
|
$ |
— |
|
Settlements of undesignated commodity derivative contracts |
(8.6 |
) |
|
2.3 |
|
|
23.4 |
|
Flow through of inventory step-up |
(4.9 |
) |
|
(18.7 |
) |
|
(20.1 |
) |
Loss on inventory write-down |
(3.3 |
) |
|
(19.1 |
) |
|
— |
|
Net gain on undesignated commodity derivative contracts |
1.8 |
|
|
7.4 |
|
|
16.3 |
|
Other losses |
(6.0 |
) |
|
— |
|
|
(2.2 |
) |
Total cost of product sold |
(29.9 |
) |
|
(28.1 |
) |
|
17.4 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
For the Years Ended |
|
February 28,
2019 |
|
February 28,
2018 |
|
February 28,
2017 |
(in millions) |
|
|
|
|
|
Selling, general and administrative expenses |
|
|
|
|
|
Impairment of intangible assets |
(108.0 |
) |
|
(86.8 |
) |
|
(37.6 |
) |
Net loss on foreign currency derivative contracts associated with acquisition of investment |
(32.6 |
) |
|
— |
|
|
— |
|
Restructuring and other strategic business development costs |
(17.1 |
) |
|
(14.0 |
) |
|
(0.9 |
) |
Deferred compensation |
(16.3 |
) |
|
— |
|
|
— |
|
Transaction, integration and other acquisition-related costs |
(10.2 |
) |
|
(8.1 |
) |
|
(14.2 |
) |
Loss on contract termination (1)
|
— |
|
|
(59.0 |
) |
|
— |
|
Costs associated with the Canadian Divestiture and related activities |
— |
|
|
(3.2 |
) |
|
(20.4 |
) |
Other gains (losses) (2)
|
10.1 |
|
|
10.5 |
|
|
(2.6 |
) |
Total selling, general and administrative expenses |
(174.1 |
) |
|
(160.6 |
) |
|
(75.7 |
) |
|
|
|
|
|
|
Gain on sale of business |
— |
|
|
— |
|
|
262.4 |
|
|
|
|
|
|
|
Comparable Adjustments, Operating income (loss) |
$ |
(204.0 |
) |
|
$ |
(188.7 |
) |
|
$ |
204.1 |
|
|
|
(1) |
Represents a loss incurred in connection with the early termination of a beer glass supply contract with an affiliate of Owens-Illinois. |
|
|
(2) |
Includes a gain of $8.5 million for the year ended February 28, 2019, in connection with the sale of certain non-core assets and a gain of $8.1 million for the year ended February 28, 2018, 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:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
For the Years Ended |
|
February 28,
2019 |
|
February 28,
2018 |
|
February 28,
2017 |
(in millions) |
|
|
|
|
|
Beer |
|
|
|
|
|
Net sales |
$ |
5,202.1 |
|
|
$ |
4,660.4 |
|
|
$ |
4,227.3 |
|
Segment operating income |
$ |
2,042.9 |
|
|
$ |
1,840.2 |
|
|
$ |
1,532.4 |
|
Long-lived tangible assets |
$ |
4,050.1 |
|
|
$ |
3,611.6 |
|
|
$ |
2,810.0 |
|
Total assets |
$ |
15,044.1 |
|
|
$ |
12,325.2 |
|
|
$ |
11,325.3 |
|
Capital expenditures |
$ |
720.0 |
|
|
$ |
882.6 |
|
|
$ |
759.2 |
|
Depreciation and amortization |
$ |
203.5 |
|
|
$ |
168.8 |
|
|
$ |
114.9 |
|
|
|
|
|
|
|
Wine and Spirits |
|
|
|
|
|
Net sales: |
|
|
|
|
|
Wine |
$ |
2,532.5 |
|
|
$ |
2,556.3 |
|
|
$ |
2,732.7 |
|
Spirits |
381.4 |
|
|
363.6 |
|
|
361.1 |
|
Net sales |
$ |
2,913.9 |
|
|
$ |
2,919.9 |
|
|
$ |
3,093.8 |
|
Segment operating income |
$ |
771.2 |
|
|
$ |
794.1 |
|
|
$ |
792.4 |
|
Income from unconsolidated investments |
$ |
33.4 |
|
|
$ |
34.4 |
|
|
$ |
29.2 |
|
Long-lived tangible assets |
$ |
1,125.5 |
|
|
$ |
1,080.7 |
|
|
$ |
992.9 |
|
Equity method investments |
$ |
79.7 |
|
|
$ |
80.7 |
|
|
$ |
77.6 |
|
Total assets |
$ |
7,305.7 |
|
|
$ |
7,217.4 |
|
|
$ |
6,976.6 |
|
Capital expenditures |
$ |
129.5 |
|
|
$ |
151.1 |
|
|
$ |
100.0 |
|
Depreciation and amortization |
$ |
98.4 |
|
|
$ |
94.0 |
|
|
$ |
99.4 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
For the Years Ended |
|
February 28,
2019 |
|
February 28,
2018 |
|
February 28,
2017 |
(in millions) |
|
|
|
|
|
Corporate Operations and Other |
|
|
|
|
|
Segment operating loss |
$ |
(197.9 |
) |
|
$ |
(165.8 |
) |
|
$ |
(139.9 |
) |
Income (loss) from unconsolidated investments |
$ |
(16.7 |
) |
|
$ |
0.2 |
|
|
$ |
(0.2 |
) |
Long-lived tangible assets |
$ |
91.7 |
|
|
$ |
97.4 |
|
|
$ |
129.9 |
|
Equity method investments |
$ |
3,385.9 |
|
|
$ |
40.8 |
|
|
$ |
21.1 |
|
Total assets |
$ |
6,881.7 |
|
|
$ |
996.1 |
|
|
$ |
300.5 |
|
Capital expenditures |
$ |
36.8 |
|
|
$ |
23.9 |
|
|
$ |
48.2 |
|
Depreciation and amortization |
$ |
28.3 |
|
|
$ |
36.9 |
|
|
$ |
31.4 |
|
|
|
|
|
|
|
Comparable Adjustments |
|
|
|
|
|
Operating income (loss) |
$ |
(204.0 |
) |
|
$ |
(188.7 |
) |
|
$ |
204.1 |
|
Income (loss) from unconsolidated investments |
$ |
2,084.9 |
|
|
$ |
452.6 |
|
|
$ |
(1.7 |
) |
Depreciation and amortization |
$ |
8.9 |
|
|
$ |
— |
|
|
$ |
2.2 |
|
|
|
|
|
|
|
Consolidated |
|
|
|
|
|
Net sales |
$ |
8,116.0 |
|
|
$ |
7,580.3 |
|
|
$ |
7,321.1 |
|
Operating income |
$ |
2,412.2 |
|
|
$ |
2,279.8 |
|
|
$ |
2,389.0 |
|
Income from unconsolidated investments (1)
|
$ |
2,101.6 |
|
|
$ |
487.2 |
|
|
$ |
27.3 |
|
Long-lived tangible assets |
$ |
5,267.3 |
|
|
$ |
4,789.7 |
|
|
$ |
3,932.8 |
|
Equity method investments |
$ |
3,465.6 |
|
|
$ |
121.5 |
|
|
$ |
98.7 |
|
Total assets |
$ |
29,231.5 |
|
|
$ |
20,538.7 |
|
|
$ |
18,602.4 |
|
Capital expenditures |
$ |
886.3 |
|
|
$ |
1,057.6 |
|
|
$ |
907.4 |
|
Depreciation and amortization |
$ |
339.1 |
|
|
$ |
299.7 |
|
|
$ |
247.9 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) |
Income from unconsolidated investments consists of: |
For the Years Ended |
|
|
February 28,
2019 |
|
February 28,
2018 |
|
February 28,
2017 |
|
(in millions) |
|
|
|
|
|
|
Unrealized net gain on securities measured at fair value |
$ |
1,971.2 |
|
|
$ |
464.3 |
|
|
$ |
— |
|
|
Net gain on sale of unconsolidated investment |
99.8 |
|
|
— |
|
|
— |
|
|
Equity in earnings from equity method investees and related activities |
30.6 |
|
|
34.6 |
|
|
27.3 |
|
|
Other (i)
|
— |
|
|
(11.7 |
) |
|
— |
|
|
|
|
$ |
2,101.6 |
|
|
$ |
487.2 |
|
|
$ |
27.3 |
|
|
(i) |
Net loss on foreign currency derivative contracts associated with November 2017 Canopy securities measured at fair value |
|
| Geographic data |
Geographic data is as follows:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
For the Years Ended |
|
February 28,
2019 |
|
February 28,
2018 |
|
February 28,
2017 |
(in millions) |
|
|
|
|
|
Net sales |
|
|
|
|
|
U.S. |
$ |
7,894.8 |
|
|
$ |
7,325.4 |
|
|
$ |
6,797.3 |
|
Non-U.S. (primarily Canada) |
221.2 |
|
|
254.9 |
|
|
523.8 |
|
|
$ |
8,116.0 |
|
|
$ |
7,580.3 |
|
|
$ |
7,321.1 |
|
|
|
|
|
|
|
|
|
|
|
February 28,
2019 |
|
February 28,
2018 |
(in millions) |
|
|
|
Long-lived tangible assets |
|
|
|
U.S. |
$ |
1,127.7 |
|
|
$ |
1,124.5 |
|
Non-U.S. (primarily Mexico) |
4,139.6 |
|
|
3,665.2 |
|
|
$ |
5,267.3 |
|
|
$ |
4,789.7 |
|
|