Quarterly report pursuant to Section 13 or 15(d)

Business Segment Information (Tables)

v3.22.2.2
Business Segment Information (Tables)
 6 Months Ended
Aug. 31, 2022
Segment Reporting [Abstract]  
Comparable adjustments Comparable Adjustments that impacted comparability in our segment operating income (loss) for each period are as follows:
For the Six Months
Ended August 31,		 For the Three Months
Ended August 31,
2022 2021 2022 2021
(in millions)
Cost of product sold
Settlements of undesignated commodity derivative contracts $ (54.6) $ (12.3) $ (31.3) $ (8.9)
Flow through of inventory step-up (1.9) 0.1  (0.9) 0.1 
Net gain (loss) on undesignated commodity derivative contracts 33.1  48.1  (15.4) 24.0 
Net flow through of reserved inventory 1.2  —  1.2  — 
Recovery of inventory write-down 0.2  —  —  — 
Strategic business development costs —  (2.6) —  — 
Total cost of product sold (22.0) 33.3  (46.4) 15.2 
Selling, general, and administrative expenses
Costs associated with the Reclassification (21.3) —  (20.6) — 
Transition services agreements activity (7.9) (7.2) (4.5) (4.9)
Restructuring and other strategic business development costs (2.6) (0.1) (1.2) 0.8 
Transaction, integration, and other acquisition-related costs (0.7) —  (0.5) — 
Other gains (losses) (1)
8.8  1.1  3.6  (2.2)
Total selling, general, and administrative expenses (23.7) (6.2) (23.2) (6.3)
Impairment of brewery construction in progress —  (665.9) —  — 
Comparable Adjustments, Operating income (loss) $ (45.7) $ (638.8) $ (69.6) $ 8.9 
(1)
 Primarily includes the following:
For the Six Months
Ended August 31,		 For the Three Months
Ended August 31,
2022 2021 2022 2021
(in millions)
Gain from remeasurement of previously held equity method investment $ 5.2  $ —  $ —  $ — 
Decrease in estimated fair value of a contingent liability associated with a prior period acquisition $ 4.4  $ —  $ 4.4  $ — 
Segment information Segment information is as follows:
For the Six Months
Ended August 31,		 For the Three Months
Ended August 31,
2022 2021 2022 2021
(in millions)
Beer
Net sales $ 4,037.5  $ 3,433.3  $ 2,139.3  $ 1,861.3 
Segment operating income (loss) $ 1,628.4  $ 1,366.1  $ 865.6  $ 693.0 
Capital expenditures $ 357.8  $ 295.8  $ 196.0  $ 210.0 
Depreciation and amortization $ 135.2  $ 118.5  $ 67.0  $ 64.5 
Wine and Spirits
Net sales:
Wine $ 846.1  $ 844.9  $ 442.0  $ 447.2 
Spirits 134.7  119.4  73.8  62.6 
Net sales $ 980.8  $ 964.3  $ 515.8  $ 509.8 
Segment operating income (loss) $ 190.4  $ 204.4  $ 99.4  $ 100.2 
Income (loss) from unconsolidated investments $ 4.9  $ 0.2  $ 3.4  $ (1.1)
Equity method investments $ 100.5  $ 126.7  $ 100.5  $ 126.7 
Capital expenditures $ 51.6  $ 54.0  $ 21.8  $ 28.3 
Depreciation and amortization $ 43.3  $ 39.6  $ 21.0  $ 19.7 
Corporate Operations and Other
Segment operating income (loss) $ (143.6) $ (117.4) $ (82.3) $ (62.9)
Income (loss) from unconsolidated investments $ (4.3) $ (0.8) $ (2.3) $ (0.2)
Equity method investments $ 98.1  $ 112.1  $ 98.1  $ 112.1 
Capital expenditures $ 25.6  $ 3.6  $ 20.6  $ 1.2 
Depreciation and amortization $ 6.9  $ 6.5  $ 3.7  $ 3.2 
Canopy
Net sales $ 174.5  $ 228.1  $ 86.3  $ 110.8 
Segment operating income (loss) $ (1,858.0) $ (337.0) $ (1,439.8) $ (152.8)
Capital expenditures $ 1.8  $ 37.5  $ 1.7  $ 16.5 
Depreciation and amortization $ 41.2  $ 43.3  $ 17.1  $ 20.4 
For the Six Months
Ended August 31,		 For the Three Months
Ended August 31,
2022 2021 2022 2021
(in millions)
Consolidation and Eliminations
Net sales $ (174.5) $ (228.1) $ (86.3) $ (110.8)
Operating income (loss) $ 1,858.0  $ 337.0  $ 1,439.8  $ 152.8 
Income (loss) from unconsolidated investments $ (86.7) $ (74.2) $ (34.7) $ (29.9)
Equity method investments $ 634.8  $ 2,580.2  $ 634.8  $ 2,580.2 
Capital expenditures $ (1.8) $ (37.5) $ (1.7) $ (16.5)
Depreciation and amortization $ (41.2) $ (43.3) $ (17.1) $ (20.4)
Comparable Adjustments
Operating income (loss) $ (45.7) $ (638.8) $ (69.6) $ 8.9 
Income (loss) from unconsolidated investments $ (1,820.9) $ (1,295.2) $ (1,685.5) $ (439.6)
Consolidated
Net sales $ 5,018.3  $ 4,397.6  $ 2,655.1  $ 2,371.1 
Operating income (loss) $ 1,629.5  $ 814.3  $ 813.1  $ 739.2 
Income (loss) from unconsolidated investments (1)
$ (1,907.0) $ (1,370.0) $ (1,719.1) $ (470.8)
Equity method investments $ 833.4  $ 2,819.0  $ 833.4  $ 2,819.0 
Capital expenditures $ 435.0  $ 353.4  $ 238.4  $ 239.5 
Depreciation and amortization $ 185.4  $ 164.6  $ 91.7  $ 87.4 
(1)
 Income (loss) from unconsolidated investments consists of:
For the Six Months
Ended August 31,		 For the Three Months
Ended August 31,
2022 2021 2022 2021
(in millions)
Impairment of Canopy Equity Method Investment $ (1,060.3) $ —  $ (1,060.3) $ — 
Unrealized net gain (loss) on securities measured at fair value (31.7) (1,335.1) (9.3) (590.0)
Equity in earnings (losses) from Canopy and related activities (815.7) (35.3) (650.7) 120.5 
Equity in earnings (losses) from other equity method investees 0.7  0.4  1.2  (1.3)
$ (1,907.0) $ (1,370.0) $ (1,719.1) $ (470.8)