Quarterly report pursuant to Section 13 or 15(d)

Equity Method Investments

Equity Method Investments
3 Months Ended
May 31, 2021
Equity Method Investments and Joint Ventures [Abstract]  
Our equity method investments are as follows:
May 31, 2021 February 28, 2021
Carrying Value Ownership Percentage Carrying Value Ownership Percentage
(in millions)
Canopy Equity Method Investment (1) (2)
$ 2,436.8  37.2  % $ 2,578.8  38.1  %
Other equity method investments 219.9 
$ 2,656.7  $ 2,788.4 
(1)The fair value based on the closing price of the underlying equity security as of May 31, 2021, and February 28, 2021, was $3,566.9 million and $4,679.3 million, respectively.
(2)Includes the following:
Common Shares Purchase Price
(in millions)
November 2017 Canopy Investment
18.9  $ 130.1 
November 2018 Canopy Investment 104.5  2,740.3 
May 2020 Canopy Investment
18.9  173.9 
142.3  $ 3,044.3 

Canopy Equity Method Investment
We complement our beverage alcohol strategy with our investment in Canopy, an Ontario, Canada-based public company and leading provider of medicinal and recreational cannabis products. 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, and unrealized gains (losses) associated with changes in our Canopy ownership percentage resulting from periodic equity issuances made by Canopy. Amounts included in our consolidated results of operations for each period are as follows:
For the Three Months
Ended May 31,
2021 2020
(in millions)
Equity in earnings (losses) from Canopy and related activities $ (155.8) $ (377.6)

Canopy has various equity and convertible debt securities outstanding, including primarily equity awards granted to its employees, and options and warrants issued to various third parties, including our November 2018 Canopy Warrants, Canopy Debt Securities, and the Acreage Financial Instrument. As of May 31, 2021, the exercise and/or conversion of certain of these outstanding securities could have a significant effect on our share of Canopy’s reported earnings or losses and our ownership interest in Canopy.

The following table presents summarized financial information for Canopy prepared 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 March 2021 and January
through March 2020 in our three months ended May 31, 2021, and May 31, 2020, results, respectively. The amounts shown represent 100% of Canopy’s results of operations for the respective periods.
For the Three Months
Ended May 31,
2021 2020
(in millions)
Net sales $ 117.3  $ 80.3 
Gross profit (loss) $ 7.7  $ (57.3)
Net income (loss) $ (487.1) $ (973.6)
Net income (loss) attributable to Canopy $ (552.9) $ (953.4)

Other equity method investment
Booker Vineyard
In April 2020, we invested in My Favorite Neighbor, LLC, also known as Booker Vineyard, a super-luxury, direct-to-consumer focused wine business which we account for under the equity method. We recognize our share of their equity in earnings (losses) in our consolidated financial statements in the Wine and Spirits segment.