Quarterly report pursuant to Section 13 or 15(d)

Business Segment Information (Tables)

v3.20.2
Business Segment Information (Tables)
 3 Months Ended
May 31, 2020
Segment Reporting [Abstract]  
Comparable adjustments
We evaluate segment operating performance based on operating income (loss) of the respective business units. Comparable Adjustments that impacted comparability in our segment operating income (loss) for each period are as follows:
For the Three Months
Ended May 31,
2020 2019
(in millions)
Cost of product sold
Strategic business development costs $ (24.3)   $ (44.5)  
Net gain (loss) on undesignated commodity derivative contracts (26.8)   (15.9)  
COVID-19 incremental costs (4.6)   —   
Settlements of undesignated commodity derivative contracts 10.4    1.8   
Accelerated depreciation —    (3.5)  
Flow through of inventory step-up —    (0.4)  
Total cost of product sold (45.3)   (62.5)  
For the Three Months
Ended May 31,
2020 2019
Selling, general, and administrative expenses
Net gain (loss) on foreign currency derivative contracts (8.0)   —   
COVID-19 incremental costs (6.5)   —   
Restructuring and other strategic business development costs (3.1)   (23.6)  
Transaction, integration, and other acquisition-related costs (0.8)   (2.3)  
Other gains (losses) (1)
7.4    13.4   
Total selling, general, and administrative expenses (11.0)   (12.5)  
Impairment of assets held for sale (25.0)   —   
Comparable Adjustments, Operating income (loss) $ (81.3)   $ (75.0)  
(1)The three months ended May 31, 2020, includes a gain of $8.8 million in connection with a vineyard sale. The three months ended May 31, 2019, includes a gain of $11.8 million 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,
2020 2019
(in millions)
Beer
Net sales $ 1,384.1    $ 1,477.4   
Segment operating income (loss) $ 577.8    $ 580.6   
Capital expenditures $ 108.3    $ 102.1   
Depreciation and amortization $ 44.3    $ 54.3   
Wine and Spirits
Net sales:
Wine $ 499.6    $ 535.0   
Spirits 79.7    84.8   
Net sales $ 579.3    $ 619.8   
Segment operating income (loss) $ 164.0    $ 160.8   
Income (loss) from unconsolidated investments $ 3.5    $ 4.0   
Equity method investments (1)
$ 121.9    $ 82.7   
Capital expenditures $ 9.5    $ 26.9   
Depreciation and amortization $ 22.5    $ 25.0   
For the Three Months
Ended May 31,
2020 2019
(in millions)
Corporate Operations and Other
Segment operating income (loss) $ (50.5)   $ (43.7)  
Income (loss) from unconsolidated investments $ 0.2    $ (1.1)  
Equity method investments $ 96.3    $ 68.4   
Capital expenditures $ 26.4    $ 26.7   
Depreciation and amortization $ 5.6    $ 5.3   
Canopy
Net sales $ 80.3    $ 70.7   
Segment operating income (loss) $ (733.2)   $ (170.0)  
Capital expenditures $ 70.0    $ 112.2   
Depreciation and amortization $ 30.1    $ 17.6   
Consolidation and Eliminations
Net sales $ (80.3)   $ (70.7)  
Operating income (loss) $ 733.2    $ 170.0   
Income (loss) from unconsolidated investments $ (31.7)   $ (54.4)  
Equity method investments $ 2,667.5    $ 3,279.3   
Capital expenditures $ (70.0)   $ (112.2)  
Depreciation and amortization $ (30.1)   $ (17.6)  
Comparable Adjustments
Operating income (loss) $ (81.3)   $ (75.0)  
Income (loss) from unconsolidated investments $ (543.2)   $ (879.1)  
Depreciation and amortization $ —    $ 3.5   
Consolidated
Net sales $ 1,963.4    $ 2,097.2   
Operating income (loss) $ 610.0    $ 622.7   
Income (loss) from unconsolidated investments (2)
$ (571.2)   $ (930.6)  
Equity method investments (1)
$ 2,885.7    $ 3,430.4   
Capital expenditures $ 144.2    $ 155.7   
Depreciation and amortization $ 72.4    $ 88.1   
(1)
Equity method investments balance at May 31, 2020, exclude amounts reclassified to assets held for sale.
(2)
 Income (loss) from unconsolidated investments consists of:
For the Three Months
Ended May 31,
2020 2019
(in millions)
Unrealized net gain (loss) on securities measured at fair value $ (197.3)   $ (827.5)  
Equity in earnings (losses) from Canopy and related activities (377.6)   (106.0)  
Equity in earnings (losses) from other equity method investees 3.7    3.0   
Net gain (loss) on sale of unconsolidated investment —    (0.1)  
$ (571.2)   $ (930.6)