Quarterly report pursuant to Section 13 or 15(d)

Business Segment Information (Tables)

v3.19.2
Business Segment Information (Tables)
 3 Months Ended
May 31, 2019
Segment Reporting [Abstract]  
Comparable adjustments Comparable Adjustments that impacted comparability in our segment operating income (loss) for each period are as follows:
 
For the Three Months Ended May 31,
 
2019
 
2018
(in millions)
 
 
 
Cost of product sold
 
 
 
Strategic business development costs
$
(44.5
)
 
$
—

Settlements of undesignated commodity derivative contracts
(30.0
)
 
(1.5
)
Accelerated depreciation
(3.5
)
 
(3.4
)
Flow through of inventory step-up
(0.4
)
 
(0.6
)
Net gain (loss) on undesignated commodity derivative contracts
15.9

 
15.4

Loss on inventory write-down
—

 
(1.5
)
Total cost of product sold
(62.5
)
 
8.4

 
 
 
 
Selling, general, and administrative expenses
 
 
 
Restructuring and other strategic business development costs
(23.6
)
 
(4.3
)
Transaction, integration, and other acquisition-related costs
(2.3
)
 
—

Deferred compensation
—

 
(16.3
)
Other gains (losses) (1)
13.4

 
—

Total selling, general, and administrative expenses
(12.5
)

(20.6
)
Comparable Adjustments, Operating income (loss)
$
(75.0
)
 
$
(12.2
)

(1) 
Includes a gain of $11.8 million for the three months ended May 31, 2019, in connection with the increase in our ownership interest in Nelson’s Green Brier.
Segment information Segment information is as follows:
 
For the Three Months Ended May 31,
 
2019
 
2018
(in millions)
 
 
 
Beer
 
 
 
Net sales
$
1,477.4

 
$
1,375.1

Segment operating income (loss)
$
580.6

 
$
520.0

Capital expenditures
$
102.1

 
$
136.5

Depreciation and amortization
$
54.3

 
$
49.5

 
 
 
 
Wine and Spirits
 
 
 
Net sales:
 
 
 
Wine
$
535.0

 
$
591.8

Spirits
84.8

 
80.2

Net sales
$
619.8

 
$
672.0

Segment operating income (loss)
$
160.8

 
$
167.8

Income (loss) from unconsolidated investments
$
4.0

 
$
4.8

Equity method investments
$
82.7

 
$
85.0

Capital expenditures
$
26.9

 
$
27.8

Depreciation and amortization
$
25.0

 
$
24.4

 
 
 
 
Corporate Operations and Other
 
 
 
Segment operating income (loss)
$
(43.7
)
 
$
(50.2
)
Income (loss) from unconsolidated investments
$
(1.1
)
 
$
(0.1
)
Equity method investments
$
68.4

 
$
42.2

Capital expenditures
$
26.7

 
$
3.9

Depreciation and amortization
$
5.3

 
$
8.4

 
 
 
 
Canopy
 
 
 
Net sales
$
70.7

 
NA

Segment operating income (loss)
$
(170.0
)
 
NA

Capital expenditures
$
112.2

 
NA

Depreciation and amortization
$
17.6

 
NA

 
 
 
 
Consolidation and Eliminations
 
 
 
Net sales
$
(70.7
)
 
$
—

Operating income (loss)
$
170.0

 
$
—

Income (loss) from unconsolidated investments
$
(54.4
)
 
$
—

Equity method investments
$
3,279.3

 
$
—

Capital expenditures
$
(112.2
)
 
$
—

Depreciation and amortization
$
(17.6
)
 
$
—

 
 
 
 

 
For the Three Months Ended May 31,
 
2019
 
2018
(in millions)
 
 
 
Comparable Adjustments
 
 
 
Operating income (loss)
$
(75.0
)
 
$
(12.2
)
Income (loss) from unconsolidated investments
$
(879.1
)
 
$
359.7

Depreciation and amortization
$
3.5

 
$
3.4

 
 
 
 
Consolidated
 
 
 
Net sales
$
2,097.2

 
$
2,047.1

Operating income (loss)
$
622.7

 
$
625.4

Income (loss) from unconsolidated investments (1)
$
(930.6
)
 
$
364.4

Equity method investments
$
3,430.4

 
$
127.2

Capital expenditures
$
155.7

 
$
168.2

Depreciation and amortization
$
88.1

 
$
85.7


(1) 
Income (loss) from unconsolidated investments consists of:
 
 
 
 
 
 
For the Three Months Ended
 
 
 
May 31,
2019
 
May 31,
2018
 
 
(in millions)
 
 
 
 
 
Unrealized net gain (loss) on securities measured at fair value
$
(827.5
)
 
$
258.3

 
 
Net gain (loss) on sale of unconsolidated investment (i)
(0.1
)
 
101.4

 
 
Equity in earnings (losses) from equity method investees
(103.0
)
 
4.7

 
 
 
$
(930.6
)
 
$
364.4

 
 
 
 
 
 
 
(i) 
In May 2018, we completed the sale of our remaining interest in our previously-owned Australian and European business (the “Accolade Wine Investment”) for A$149.1 million, or $113.6 million, subject to closing adjustments. We received cash proceeds, net of direct costs to sell, of $110.2 million and a note receivable of $3.4 million. This interest consisted of an investment accounted for under the cost method and available-for-sale debt securities.