Income Taxes |
6 Months Ended |
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Aug. 31, 2021 | |
| Income Tax Disclosure [Abstract] | |
| INCOME TAXES | INCOME TAXES Our effective tax rate for the six months ended August 31, 2021, and August 31, 2020, was (15.3)% and 40.7%, respectively. Our effective tax rate for the three months ended August 31, 2021, and August 31, 2020, was 91.7% and 20.6%, respectively.
For the six months ended August 31, 2021, our effective tax rate was lower than the federal statutory rate of 21% primarily due to:
•valuation allowances on a portion of the unrealized net loss from changes in fair value of our investment in Canopy and Canopy equity in earnings (losses), and
•the impact of the long-lived asset impairment of brewery construction in progress.
For the three months ended August 31, 2021, our effective tax rate was higher than the federal statutory rate of 21% primarily due to:
•valuation allowances on the unrealized net loss from changes in fair value of our investment in Canopy and Canopy equity in earnings (losses); partially offset by
•the benefit of lower effective tax rates applicable to our foreign businesses.
For the six months ended August 31, 2020, our effective tax rate was higher than the federal statutory rate of 21% primarily due to:
•valuation allowances on the unrealized net loss from changes in fair value of our investment in Canopy and Canopy equity in earnings (losses), and
•valuation allowances on existing capital loss carryforwards; partially offset by
•the recognition of a net income tax benefit from stock-based compensation award activity.
For the three months ended August 31, 2020, our effective tax rate approximated the federal statutory rate of 21% as the recognition of a net income tax benefit from stock-based compensation award activity was largely offset by (i) valuation allowances on the unrealized net loss from the changes in fair value of our investment in Canopy and Canopy equity in earnings (losses) and (ii) higher effective tax rates from our foreign businesses.
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