Quarterly report pursuant to Section 13 or 15(d)

Business Segment Information (Tables)

v3.19.3
Business Segment Information (Tables)
6 Months Ended
Aug. 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 Six Months Ended August 31,
 
For the Three Months Ended August 31,
 
2019
 
2018
 
2019
 
2018
(in millions)
 
 
 
 
 
 
 
Cost of product sold
 
 
 
 
 
 
 
Strategic business development costs
$
(62.5
)
 
$

 
$
(18.0
)
 
$

Settlements of undesignated commodity derivative contracts
(48.4
)
 
(5.1
)
 
(18.4
)
 
(3.6
)
Accelerated depreciation
(5.3
)
 
(5.0
)
 
(1.8
)
 
(1.6
)
Flow through of inventory step-up
(1.2
)
 
(1.4
)
 
(0.8
)
 
(0.8
)
Net gain (loss) on undesignated commodity derivative contracts
26.8

 
9.6

 
10.9

 
(5.8
)
Recovery of (loss on) inventory write-down
8.6

 
(1.5
)
 
8.6

 

Total cost of product sold
(82.0
)
 
(3.4
)
 
(19.5
)
 
(11.8
)
 
 
 
 
 
 
 
 
Selling, general, and administrative expenses
 
 
 
 
 
 
 
Net gain (loss) on foreign currency derivative contracts associated with acquisition of investment

 
(7.1
)
 

 
(7.1
)
Restructuring and other strategic business development costs
(50.1
)
 
(8.6
)
 
(26.5
)
 
(4.3
)
Transaction, integration, and other acquisition-related costs
(5.5
)
 
(1.0
)
 
(3.2
)
 
(1.0
)
Impairment of intangible assets
(11.0
)
 

 
(11.0
)
 

Deferred compensation

 
(16.3
)
 

 

Other gains (losses) (1)
1.1

 
8.5

 
(12.3
)
 
8.5

Total selling, general, and administrative expenses
(65.5
)

(24.5
)
 
(53.0
)
 
(3.9
)
Comparable Adjustments, Operating income (loss)
$
(147.5
)
 
$
(27.9
)
 
$
(72.5
)
 
$
(15.7
)

(1) 
Includes a gain of $11.8 million for the six months ended August 31, 2019, in connection with the increase in our ownership interest in Nelson’s Green Brier and a loss of $11.4 million and $13.3 million for the six months and three months ended August 31, 2019, respectively, in connection with an increase in estimated fair value of a contingent liability associated with a prior period acquisition.
Segment information Segment information is as follows:
 
For the Six Months Ended August 31,
 
For the Three Months Ended August 31,
 
2019
 
2018
 
2019
 
2018
(in millions)
 
 
 
 
 
 
 
Beer
 
 
 
 
 
 
 
Net sales
$
3,117.8

 
$
2,902.2

 
$
1,640.4

 
$
1,527.1

Segment operating income (loss)
$
1,265.9

 
$
1,150.6

 
$
685.3

 
$
630.6

Capital expenditures
$
272.8

 
$
296.3

 
$
170.7

 
$
159.8

Depreciation and amortization
$
106.2

 
$
100.5

 
$
51.9

 
$
51.0

 
 
 
 
 
 
 
 
Wine and Spirits
 
 
 
 
 
 
 
Net sales:
 
 
 
 
 
 
 
Wine
$
1,146.1

 
$
1,262.8

 
$
611.1

 
$
671.0

Spirits
177.3

 
181.2

 
92.5

 
101.0

Net sales
$
1,323.4

 
$
1,444.0

 
$
703.6

 
$
772.0

Segment operating income (loss)
$
321.2

 
$
369.2

 
$
160.4

 
$
201.4

Income (loss) from unconsolidated investments
$
3.0

 
$
3.8

 
$
(1.0
)
 
$
(1.0
)
Equity method investments
$
76.8

 
$
79.1

 
$
76.8

 
$
79.1

Capital expenditures
$
43.1

 
$
58.8

 
$
16.2

 
$
31.0

Depreciation and amortization
$
50.0

 
$
49.2

 
$
25.0

 
$
24.8

 
 
 
 
 
 
 
 
Corporate Operations and Other
 
 
 
 
 
 
 
Segment operating income (loss)
$
(97.4
)
 
$
(101.5
)
 
$
(53.7
)
 
$
(51.3
)
Income (loss) from unconsolidated investments
$
(1.3
)
 
$
(1.2
)
 
$
(0.2
)
 
$
(1.1
)
Equity method investments
$
81.0

 
$
41.2

 
$
81.0

 
$
41.2

Capital expenditures
$
39.3

 
$
15.5

 
$
12.6

 
$
11.6

Depreciation and amortization
$
10.5

 
$
17.1

 
$
5.2

 
$
8.7

 
 
 
 
 
 
 
 
Canopy
 
 
 
 
 
 
 
Net sales
$
138.4

 
NA

 
$
67.7

 
NA

Segment operating income (loss)
$
(330.5
)
 
NA

 
$
(160.5
)
 
NA

Capital expenditures
$
270.6

 
NA

 
$
158.4

 
NA

Depreciation and amortization
$
35.0

 
NA

 
$
17.4

 
NA

 
 
 
 
 
 
 
 
Consolidation and Eliminations
 
 
 
 
 
 
 
Net sales
$
(138.4
)
 
$

 
$
(67.7
)
 
$

Operating income (loss)
$
330.5

 
$

 
$
160.5

 
$

Income (loss) from unconsolidated investments
$
(109.1
)
 
$

 
$
(54.7
)
 
$

Equity method investments
$
2,846.0

 
$

 
$
2,846.0

 
$

Capital expenditures
$
(270.6
)
 
$

 
$
(158.4
)
 
$

Depreciation and amortization
$
(35.0
)
 
$

 
$
(17.4
)
 
$

 
 
 
 
 
 
 
 

 
For the Six Months Ended August 31,
 
For the Three Months Ended August 31,
 
2019
 
2018
 
2019
 
2018
(in millions)
 
 
 
 
 
 
 
Comparable Adjustments
 
 
 
 
 
 
 
Operating income (loss)
$
(147.5
)
 
$
(27.9
)
 
$
(72.5
)
 
$
(15.7
)
Income (loss) from unconsolidated investments
$
(2,147.9
)
 
$
1,050.2

 
$
(1,268.8
)
 
$
690.5

Depreciation and amortization
$
5.3

 
$
5.0

 
$
1.8

 
$
1.6

 
 
 
 
 
 
 
 
Consolidated
 
 
 
 
 
 
 
Net sales
$
4,441.2

 
$
4,346.2

 
$
2,344.0

 
$
2,299.1

Operating income (loss)
$
1,342.2

 
$
1,390.4

 
$
719.5

 
$
765.0

Income (loss) from unconsolidated investments (1)
$
(2,255.3
)
 
$
1,052.8

 
$
(1,324.7
)
 
$
688.4

Equity method investments
$
3,003.8

 
$
120.3

 
$
3,003.8

 
$
120.3

Capital expenditures
$
355.2

 
$
370.6

 
$
199.5

 
$
202.4

Depreciation and amortization
$
172.0

 
$
171.8

 
$
83.9

 
$
86.1


(1) 
Income (loss) from unconsolidated investments consists of:
 
 
 
For the Six Months Ended
 
For the Three Months Ended
 
 
 
August 31,
2019
 
August 31,
2018
 
August 31,
2019
 
August 31,
2018
 
 
(in millions)
 
 
 
 
 
 
 
 
 
Unrealized net gain (loss) on securities measured at fair value
$
(1,666.6
)
 
$
950.4

 
$
(839.1
)
 
$
692.1

 
 
Net gain (loss) on sale of unconsolidated investment (i)
(0.1
)
 
99.8

 

 
(1.6
)
 
 
Equity in earnings (losses) of equity method investees and related activities (ii)
(588.6
)
 
2.6

 
(485.6
)
 
(2.1
)
 
 
 
$
(2,255.3
)
 
$
1,052.8

 
$
(1,324.7
)
 
$
688.4

 
 
 
 
 
 
 
 
 
 
 
(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.
 
(ii) 
Includes the June 2019 Warrant Modification Loss.