| Comparable adjustments |
Comparable Adjustments that impacted comparability in our segment operating income (loss) for each period are as follows:
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For the Nine Months Ended November 30, |
|
For the Three Months Ended November 30, |
|
2019 |
|
2018 |
|
2019 |
|
2018 |
(in millions) |
|
|
|
|
|
|
|
Cost of product sold |
|
|
|
|
|
|
|
Strategic business development costs |
$ |
(124.2 |
) |
|
$ |
— |
|
|
$ |
(61.7 |
) |
|
$ |
— |
|
Net gain (loss) on undesignated commodity derivative contracts |
(23.7 |
) |
|
(5.1 |
) |
|
3.1 |
|
|
(14.7 |
) |
Accelerated depreciation |
(7.1 |
) |
|
(6.5 |
) |
|
(1.8 |
) |
|
(1.5 |
) |
Flow through of inventory step-up |
(1.5 |
) |
|
(3.6 |
) |
|
(0.3 |
) |
|
(2.2 |
) |
Recovery of (loss on) inventory write-down |
8.6 |
|
|
(2.8 |
) |
|
— |
|
|
(1.3 |
) |
Settlements of undesignated commodity derivative contracts |
7.5 |
|
|
(7.3 |
) |
|
2.3 |
|
|
(2.2 |
) |
Total cost of product sold |
(140.4 |
) |
|
(25.3 |
) |
|
(58.4 |
) |
|
(21.9 |
) |
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For the Nine Months Ended November 30, |
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For the Three Months Ended November 30, |
|
2019 |
|
2018 |
|
2019 |
|
2018 |
Selling, general, and administrative expenses |
|
|
|
|
|
|
|
Restructuring and other strategic business development costs |
(25.5 |
) |
|
(10.9 |
) |
|
(2.4 |
) |
|
(2.3 |
) |
Impairment of intangible assets |
(11.0 |
) |
|
— |
|
|
— |
|
|
— |
|
Transaction, integration, and other acquisition-related costs |
(6.7 |
) |
|
(9.1 |
) |
|
(1.2 |
) |
|
(8.1 |
) |
Net gain (loss) on foreign currency derivative contracts associated with acquisition of investment |
— |
|
|
(32.6 |
) |
|
— |
|
|
(25.5 |
) |
Deferred compensation |
— |
|
|
(16.3 |
) |
|
— |
|
|
— |
|
Other gains (losses) (1)
|
0.3 |
|
|
10.9 |
|
|
(0.8 |
) |
|
2.4 |
|
Total selling, general, and administrative expenses |
(42.9 |
) |
|
(58.0 |
) |
|
(4.4 |
) |
|
(33.5 |
) |
|
|
|
|
|
|
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Impairment of assets held for sale |
(417.0 |
) |
|
— |
|
|
(390.0 |
) |
|
— |
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|
|
|
|
|
|
|
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Gain (loss) on sale of business |
76.0 |
|
|
— |
|
|
76.0 |
|
|
— |
|
Comparable Adjustments, Operating income (loss) |
$ |
(524.3 |
) |
|
$ |
(83.3 |
) |
|
$ |
(376.8 |
) |
|
$ |
(55.4 |
) |
(1)
The nine months ended November 30, 2019, includes a gain of $11.8 million in connection with the increase in our ownership interest in Nelson’s Green Brier and a loss of $11.4 million in connection with an increase in estimated fair value of a contingent liability associated with a prior period acquisition. The nine months ended November 30, 2018, includes a gain of $8.5 million in connection with the sale of certain non-core assets.
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| 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, |
|
2019 |
|
2018 |
|
2019 |
|
2018 |
(in millions) |
|
|
|
|
|
|
|
Beer |
|
|
|
|
|
|
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Net sales |
$ |
4,428.4 |
|
|
$ |
4,112.0 |
|
|
$ |
1,310.6 |
|
|
$ |
1,209.8 |
|
Segment operating income (loss) |
$ |
1,780.8 |
|
|
$ |
1,601.5 |
|
|
$ |
514.9 |
|
|
$ |
450.9 |
|
Capital expenditures |
$ |
427.6 |
|
|
$ |
507.3 |
|
|
$ |
154.8 |
|
|
$ |
211.0 |
|
Depreciation and amortization |
$ |
155.7 |
|
|
$ |
152.0 |
|
|
$ |
49.5 |
|
|
$ |
51.5 |
|
|
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|
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|
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|
|
|
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|
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|
|
|
|
|
|
For the Nine Months Ended November 30, |
|
For the Three Months Ended November 30, |
|
2019 |
|
2018 |
|
2019 |
|
2018 |
(in millions) |
|
|
|
|
|
|
|
Wine and Spirits |
|
|
|
|
|
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Net sales: |
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|
|
|
|
|
|
Wine |
$ |
1,747.3 |
|
|
$ |
1,933.1 |
|
|
$ |
601.2 |
|
|
$ |
670.3 |
|
Spirits |
264.9 |
|
|
273.7 |
|
|
87.6 |
|
|
92.5 |
|
Net sales |
$ |
2,012.2 |
|
|
$ |
2,206.8 |
|
|
$ |
688.8 |
|
|
$ |
762.8 |
|
Segment operating income (loss) |
$ |
501.6 |
|
|
$ |
575.2 |
|
|
$ |
180.4 |
|
|
$ |
206.0 |
|
Income (loss) from unconsolidated investments |
$ |
34.6 |
|
|
$ |
32.2 |
|
|
$ |
31.6 |
|
|
$ |
28.4 |
|
Equity method investments |
$ |
97.9 |
|
|
$ |
97.8 |
|
|
$ |
97.9 |
|
|
$ |
97.8 |
|
Capital expenditures |
$ |
58.5 |
|
|
$ |
91.1 |
|
|
$ |
15.4 |
|
|
$ |
32.3 |
|
Depreciation and amortization |
$ |
75.2 |
|
|
$ |
73.4 |
|
|
$ |
25.2 |
|
|
$ |
24.2 |
|
|
|
|
|
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Corporate Operations and Other |
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Segment operating income (loss) |
$ |
(148.7 |
) |
|
$ |
(146.5 |
) |
|
$ |
(51.3 |
) |
|
$ |
(45.0 |
) |
Income (loss) from unconsolidated investments |
$ |
(1.8 |
) |
|
$ |
(0.3 |
) |
|
$ |
(0.5 |
) |
|
$ |
0.9 |
|
Equity method investments |
$ |
81.4 |
|
|
$ |
50.0 |
|
|
$ |
81.4 |
|
|
$ |
50.0 |
|
Capital expenditures |
$ |
52.2 |
|
|
$ |
21.9 |
|
|
$ |
12.9 |
|
|
$ |
6.4 |
|
Depreciation and amortization |
$ |
15.2 |
|
|
$ |
22.7 |
|
|
$ |
4.7 |
|
|
$ |
5.6 |
|
|
|
|
|
|
|
|
|
Canopy |
|
|
|
|
|
|
|
Net sales |
$ |
196.4 |
|
|
NA |
|
|
$ |
58.0 |
|
|
NA |
|
Segment operating income (loss) |
$ |
(541.3 |
) |
|
NA |
|
|
$ |
(210.8 |
) |
|
NA |
|
Capital expenditures |
$ |
443.5 |
|
|
NA |
|
|
$ |
172.9 |
|
|
NA |
|
Depreciation and amortization |
$ |
56.2 |
|
|
NA |
|
|
$ |
21.2 |
|
|
NA |
|
|
|
|
|
|
|
|
|
Consolidation and Eliminations |
|
|
|
|
|
|
|
Net sales |
$ |
(196.4 |
) |
|
$ |
— |
|
|
$ |
(58.0 |
) |
|
$ |
— |
|
Operating income (loss) |
$ |
541.3 |
|
|
$ |
— |
|
|
$ |
210.8 |
|
|
$ |
— |
|
Income (loss) from unconsolidated investments |
$ |
(180.2 |
) |
|
$ |
— |
|
|
$ |
(71.1 |
) |
|
$ |
— |
|
Equity method investments |
$ |
2,879.4 |
|
|
$ |
3,435.2 |
|
|
$ |
2,879.4 |
|
|
$ |
3,435.2 |
|
Capital expenditures |
$ |
(443.5 |
) |
|
$ |
— |
|
|
$ |
(172.9 |
) |
|
$ |
— |
|
Depreciation and amortization |
$ |
(56.2 |
) |
|
$ |
— |
|
|
$ |
(21.2 |
) |
|
$ |
— |
|
|
|
|
|
|
|
|
|
Comparable Adjustments |
|
|
|
|
|
|
|
Operating income (loss) |
$ |
(524.3 |
) |
|
$ |
(83.3 |
) |
|
$ |
(376.8 |
) |
|
$ |
(55.4 |
) |
Income (loss) from unconsolidated investments |
$ |
(2,564.4 |
) |
|
$ |
886.3 |
|
|
$ |
(416.5 |
) |
|
$ |
(163.9 |
) |
Depreciation and amortization |
$ |
7.1 |
|
|
$ |
6.5 |
|
|
$ |
1.8 |
|
|
$ |
1.5 |
|
|
|
|
|
|
|
|
|
Consolidated |
|
|
|
|
|
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|
Net sales |
$ |
6,440.6 |
|
|
$ |
6,318.8 |
|
|
$ |
1,999.4 |
|
|
$ |
1,972.6 |
|
Operating income (loss) |
$ |
1,609.4 |
|
|
$ |
1,946.9 |
|
|
$ |
267.2 |
|
|
$ |
556.5 |
|
Income (loss) from unconsolidated investments (1)
|
$ |
(2,711.8 |
) |
|
$ |
918.2 |
|
|
$ |
(456.5 |
) |
|
$ |
(134.6 |
) |
Equity method investments |
$ |
3,058.7 |
|
|
$ |
3,583.0 |
|
|
$ |
3,058.7 |
|
|
$ |
3,583.0 |
|
Capital expenditures |
$ |
538.3 |
|
|
$ |
620.3 |
|
|
$ |
183.1 |
|
|
$ |
249.7 |
|
Depreciation and amortization |
$ |
253.2 |
|
|
$ |
254.6 |
|
|
$ |
81.2 |
|
|
$ |
82.8 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) |
Income (loss) from unconsolidated investments consists of: |
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|
|
For the Nine Months Ended |
|
For the Three Months Ended |
|
|
|
November 30,
2019 |
|
November 30,
2018 |
|
November 30,
2019 |
|
November 30,
2018 |
|
|
(in millions) |
|
|
|
|
|
|
|
|
|
Unrealized net gain (loss) on securities measured at fair value |
$ |
(2,200.9 |
) |
|
$ |
786.5 |
|
|
$ |
(534.3 |
) |
|
$ |
(163.9 |
) |
|
|
Net gain (loss) on sale of unconsolidated investment (i)
|
0.4 |
|
|
99.8 |
|
|
0.5 |
|
|
— |
|
|
|
Equity in earnings (losses) of equity method investees and related activities (ii)
|
(511.3 |
) |
|
31.9 |
|
|
77.3 |
|
|
29.3 |
|
|
|
|
$ |
(2,711.8 |
) |
|
$ |
918.2 |
|
|
$ |
(456.5 |
) |
|
$ |
(134.6 |
) |
|
|
|
|
|
|
|
|
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(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. |
|