| Comparable adjustments |
Comparable Adjustments that impacted comparability in our segment operating income (loss) for each period are as follows:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
For the Years Ended |
|
February 29,
2020 |
|
February 28,
2019 |
|
February 28,
2018 |
(in millions) |
|
|
|
|
|
Cost of product sold |
|
|
|
|
|
Strategic business development costs |
$ |
(124.5 |
) |
|
$ |
(6.0 |
) |
|
$ |
— |
|
Net gain (loss) on undesignated commodity derivative contracts |
(49.0 |
) |
|
1.8 |
|
|
7.4 |
|
Accelerated depreciation |
(7.6 |
) |
|
(8.9 |
) |
|
— |
|
Flow through of inventory step-up |
(1.5 |
) |
|
(4.9 |
) |
|
(18.7 |
) |
Settlements of undesignated commodity derivative contracts |
11.7 |
|
|
(8.6 |
) |
|
2.3 |
|
Recovery of (loss on) on inventory write-down |
8.6 |
|
|
(3.3 |
) |
|
(19.1 |
) |
Total cost of product sold |
(162.3 |
) |
|
(29.9 |
) |
|
(28.1 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
Selling, general, and administrative expenses |
|
|
|
|
|
Restructuring and other strategic business development costs |
(25.3 |
) |
|
(17.1 |
) |
|
(14.0 |
) |
Impairment of intangible assets |
(11.0 |
) |
|
(108.0 |
) |
|
(86.8 |
) |
Transaction, integration, and other acquisition-related costs |
(9.2 |
) |
|
(10.2 |
) |
|
(11.3 |
) |
Net gain (loss) on foreign currency derivative contracts associated with acquisition of investment |
— |
|
|
(32.6 |
) |
|
— |
|
Deferred compensation |
— |
|
|
(16.3 |
) |
|
— |
|
Loss on contract termination (1)
|
— |
|
|
— |
|
|
(59.0 |
) |
Other gains (losses) (2)
|
5.5 |
|
|
10.1 |
|
|
10.5 |
|
Total selling, general, and administrative expenses |
(40.0 |
) |
|
(174.1 |
) |
|
(160.6 |
) |
|
|
|
|
|
|
Impairment of assets held for sale |
(449.7 |
) |
|
— |
|
|
— |
|
|
|
|
|
|
|
Gain (loss) on sale of business |
74.1 |
|
|
— |
|
|
— |
|
Comparable Adjustments, Operating income (loss) |
$ |
(577.9 |
) |
|
$ |
(204.0 |
) |
|
$ |
(188.7 |
) |
|
|
|
|
|
|
|
|
|
|
|
(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 the following: |
For the Years Ended |
|
|
February 29,
2020 |
|
February 28,
2019 |
|
February 28,
2018 |
|
Increase in our ownership interest in Nelson’s Green Brier |
11.8 |
|
|
— |
|
|
— |
|
|
Recognition of previously deferred gain upon release of a related guarantee |
6.2 |
|
|
— |
|
|
— |
|
|
(Increase) reduction in estimated fair value of a contingent liability associated with a prior period acquisition |
(11.4 |
) |
|
— |
|
|
8.1 |
|
|
Sale of certain non-core assets |
(0.3 |
) |
|
8.5 |
|
|
— |
|
|
| Segment information |
Segment information is as
follows:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
For the Years Ended |
|
February 29,
2020 |
|
February 28,
2019 |
|
February 28,
2018 |
(in millions) |
|
|
|
|
|
Beer |
|
|
|
|
|
Net sales |
$ |
5,615.9 |
|
|
$ |
5,202.1 |
|
|
$ |
4,660.4 |
|
Segment operating income (loss) |
$ |
2,247.9 |
|
|
$ |
2,042.9 |
|
|
$ |
1,840.2 |
|
Capital expenditures |
$ |
571.7 |
|
|
$ |
720.0 |
|
|
$ |
882.6 |
|
Depreciation and amortization |
$ |
204.3 |
|
|
$ |
203.5 |
|
|
$ |
168.8 |
|
|
|
|
|
|
|
Wine and Spirits |
|
|
|
|
|
Net sales: |
|
|
|
|
|
Wine |
$ |
2,367.5 |
|
|
$ |
2,532.5 |
|
|
$ |
2,556.3 |
|
Spirits |
360.1 |
|
|
381.4 |
|
|
363.6 |
|
Net sales |
$ |
2,727.6 |
|
|
$ |
2,913.9 |
|
|
$ |
2,919.9 |
|
Segment operating income (loss) |
$ |
708.4 |
|
|
$ |
771.2 |
|
|
$ |
794.1 |
|
Income (loss) from unconsolidated investments |
$ |
36.4 |
|
|
$ |
33.4 |
|
|
$ |
34.4 |
|
Equity method investments (1)
|
$ |
87.7 |
|
|
$ |
79.7 |
|
|
$ |
80.7 |
|
Capital expenditures |
$ |
92.7 |
|
|
$ |
129.5 |
|
|
$ |
151.1 |
|
Depreciation and amortization |
$ |
98.7 |
|
|
$ |
98.4 |
|
|
$ |
94.0 |
|
|
|
|
|
|
|
Corporate Operations and Other |
|
|
|
|
|
Segment operating income (loss) |
$ |
(223.9 |
) |
|
$ |
(197.9 |
) |
|
$ |
(165.8 |
) |
Income (loss) from unconsolidated investments |
$ |
(3.2 |
) |
|
$ |
(0.2 |
) |
|
$ |
0.2 |
|
Equity method investments |
$ |
94.5 |
|
|
$ |
53.8 |
|
|
$ |
40.8 |
|
Capital expenditures |
$ |
62.1 |
|
|
$ |
36.8 |
|
|
$ |
23.9 |
|
Depreciation and amortization |
$ |
21.6 |
|
|
$ |
28.3 |
|
|
$ |
36.9 |
|
|
|
|
|
|
|
Canopy |
|
|
|
|
|
Net sales |
$ |
290.2 |
|
|
$ |
48.6 |
|
|
NA |
|
Segment operating income (loss) |
$ |
(685.8 |
) |
|
$ |
(82.7 |
) |
|
NA |
|
Capital expenditures |
$ |
572.8 |
|
|
$ |
449.8 |
|
|
NA |
|
Depreciation and amortization |
$ |
81.4 |
|
|
$ |
21.9 |
|
|
NA |
|
|
|
|
|
|
|
Consolidation and Eliminations |
|
|
|
|
|
Net sales |
$ |
(290.2 |
) |
|
$ |
(48.6 |
) |
|
$ |
— |
|
Operating income (loss) |
$ |
685.8 |
|
|
$ |
82.7 |
|
|
$ |
— |
|
Income (loss) from unconsolidated investments |
$ |
(221.7 |
) |
|
$ |
(16.5 |
) |
|
$ |
— |
|
Equity method investments |
$ |
2,911.7 |
|
|
$ |
3,332.1 |
|
|
$ |
— |
|
Capital expenditures |
$ |
(572.8 |
) |
|
$ |
(449.8 |
) |
|
$ |
— |
|
Depreciation and amortization |
$ |
(81.4 |
) |
|
$ |
(21.9 |
) |
|
$ |
— |
|
|
|
|
|
|
|
Comparable Adjustments |
|
|
|
|
|
Operating income (loss) |
$ |
(577.9 |
) |
|
$ |
(204.0 |
) |
|
$ |
(188.7 |
) |
Income (loss) from unconsolidated investments |
$ |
(2,480.1 |
) |
|
$ |
2,084.9 |
|
|
$ |
452.6 |
|
Depreciation and amortization |
$ |
7.6 |
|
|
$ |
8.9 |
|
|
$ |
— |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
For the Years Ended |
|
February 29,
2020 |
|
February 28,
2019 |
|
February 28,
2018 |
(in millions) |
|
|
|
|
|
Consolidated |
|
|
|
|
|
Net sales |
$ |
8,343.5 |
|
|
$ |
8,116.0 |
|
|
$ |
7,580.3 |
|
Operating income (loss) |
$ |
2,154.5 |
|
|
$ |
2,412.2 |
|
|
$ |
2,279.8 |
|
Income (loss) from unconsolidated investments (2)
|
$ |
(2,668.6 |
) |
|
$ |
2,101.6 |
|
|
$ |
487.2 |
|
Equity method investments (1)
|
$ |
3,093.9 |
|
|
$ |
3,465.6 |
|
|
$ |
121.5 |
|
Capital expenditures |
$ |
726.5 |
|
|
$ |
886.3 |
|
|
$ |
1,057.6 |
|
Depreciation and amortization |
$ |
332.2 |
|
|
$ |
339.1 |
|
|
$ |
299.7 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) |
Equity method investments balance at February 29, 2020, excludes amounts reclassified to assets held for sale. |
(2) |
Income (loss) from unconsolidated investments consists of: |
For the Years Ended |
|
|
February 29,
2020 |
|
February 28,
2019 |
|
February 28,
2018 |
|
(in millions) |
|
|
|
|
|
|
Unrealized net gain (loss) on securities measured at fair value |
$ |
(2,126.4 |
) |
|
$ |
1,971.2 |
|
|
$ |
464.3 |
|
|
Net gain (loss) on sale of unconsolidated investment |
0.4 |
|
|
99.8 |
|
|
— |
|
|
Equity in earnings (losses) from Canopy and related activities (i)
|
(575.9 |
) |
|
(2.6 |
) |
|
— |
|
|
Equity in earnings (losses) from other equity method investees |
33.3 |
|
|
33.2 |
|
|
34.6 |
|
|
Other (ii)
|
— |
|
|
— |
|
|
(11.7 |
) |
|
|
|
$ |
(2,668.6 |
) |
|
$ |
2,101.6 |
|
|
$ |
487.2 |
|
|
|
|
|
|
|
|
|
|
(i) |
Includes the June 2019 Modification Loss |
|
(ii) |
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 29,
2020 |
|
February 28,
2019 |
|
February 28,
2018 |
(in millions) |
|
|
|
|
|
Net sales |
|
|
|
|
|
U.S. |
$ |
8,116.2 |
|
|
$ |
7,894.8 |
|
|
$ |
7,325.4 |
|
Non-U.S. (primarily Canada) |
227.3 |
|
|
221.2 |
|
|
254.9 |
|
|
$ |
8,343.5 |
|
|
$ |
8,116.0 |
|
|
$ |
7,580.3 |
|
|
|
|
|
|
|
|
|
|
|
February 29,
2020 |
|
February 28,
2019 |
(in millions) |
|
|
|
Long-lived tangible assets (1)
|
|
|
|
U.S. |
$ |
897.7 |
|
|
$ |
1,127.7 |
|
Non-U.S. (primarily Mexico) |
4,435.3 |
|
|
4,139.6 |
|
|
$ |
5,333.0 |
|
|
$ |
5,267.3 |
|
(1)
Long-lived tangible assets balance at February 29, 2020, excludes amounts reclassified to assets held for sale.
|