Quarterly report pursuant to Section 13 or 15(d)

Other Assets

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Other Assets
 6 Months Ended
Aug. 31, 2024
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract]  
OTHER ASSETS OTHER ASSETS
The major components of other assets are as follows:
August 31,
2024		 February 29,
2024
(in millions)
Operating lease right-of-use asset $ 579.5  $ 615.3 
Equity method investments 128.7  170.6 
Exchangeable Shares 97.3  — 
Other investments in debt and equity securities
 90.5  73.0 
Derivative assets 67.9  154.9 
Assets held for sale
 —  25.7 
Other 127.3  100.5 
$ 1,091.2  $ 1,140.0 

Equity method investments
The carrying value of our equity method investments are as follows:
August 31,
2024		 February 29,
2024
(in millions)
Canopy Equity Method Investment (1)
$ —  $ 42.5 
Other equity method investments 128.7  128.1 
$ 128.7  $ 170.6 
(1)Following the April 2024 conversion to Exchangeable Shares we no longer apply the equity method.

Exchangeable Shares
In April 2024, we elected to convert our 17.1 million Canopy common shares into Exchangeable Shares on a one-for-one basis. Additionally, in April 2024, we exchanged C$81.2 million of the principal amount of the C$100.0 million 4.25% promissory note issued to us by Canopy for 9.1 million Exchangeable Shares and forgave all accrued but unpaid interest together with the remaining principal amount of the note. As a result of these transactions, we (i) have 26.3 million Exchangeable Shares and (ii) recognized an $83.3 million net gain in income (loss) from unconsolidated investments within our consolidated results of operations for the six months ended August 31, 2024. The fair value of Exchangeable Shares on the date of the conversion and exchange was estimated using a valuation model based primarily on the following inputs: (i) Canopy’s common share price, (ii) the expected volatility of Canopy’s common shares, and (iii) the probability and timing of U.S. federal legalization of recreational cannabis. As the Exchangeable Shares are an equity security without a readily determinable fair value, we elected to account for the Exchangeable Shares under the measurement alternative method. Future impairments, if any, will also be reported in income (loss) from unconsolidated investments within our consolidated results.
Other investments in debt and equity securities
We have multiple investments through our corporate venture capital function in debt and equity securities.

Assets held for sale
Mexicali Brewery
In July 2024, we sold the remaining assets classified as held for sale at the canceled Mexicali Brewery. These net assets had met held for sale criteria as of February 29, 2024, and through the date of sale.