Equity Method Investments (Tables)
|6 Months Ended|
Aug. 31, 2020
|Equity Method Investments and Joint Ventures [Abstract]|
|Equity method investments||
Our equity method investments are as follows:
(1)Reflects our ownership interest in Canopy on a prorated basis for the May 2020 Canopy Investment, see defined term below.
(2)The other equity method investments balance at August 31, 2020, and February 29, 2020, excludes investments reclassified to assets held for sale.Equity in earnings (losses) from the Canopy Equity Method Investment and related activities (see table below) include, among other items, restructuring and other strategic business development costs, the amortization of the fair value adjustments associated with the definite-lived intangible assets over their estimated useful lives, the flow through of inventory step-up, unrealized gains (losses) associated with changes in our Canopy ownership percentage resulting from periodic equity issuances made by Canopy, and our share of Canopy’s additional loss resulting from the June 2019 Warrant Modification (as defined below) of $409.0 million (the “June 2019 Warrant Modification Loss”).
Amounts included in our consolidated results of operations for each period are as follows:
The following table presents summarized financial information for Canopy presented in accordance with U.S. GAAP. We recognize our equity in earnings (losses) for Canopy on a two-month lag. Accordingly, we recognized our share of Canopy’s earnings (losses) for the periods January through June 2020 and January through June 2019 in our six months ended August 31, 2020, and August 31, 2019, results, respectively. We recognized our share of Canopy’s earnings (losses) for the periods April through June 2020 and April through June 2019 in our three months ended August 31, 2020, and August 31, 2019, results, respectively. The amounts shown represent 100% of Canopy’s results of operations for the respective periods, however, the results of operations for the six months and three months ended August 31, 2019, exclude the impact of the June 2019 Warrant Modification Loss because it was recorded by Canopy within equity. The six months and three months ended August 31, 2020, includes costs designed to improve Canopy’s organizational focus, streamline operations, and align production capability with projected demand.
Tabular disclosure of equity method investments including, but not limited to, name of each investee or group of investments, percentage ownership, difference between recorded amount of an investment and the value of the underlying equity in the net assets, and summarized financial information.
Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef