Quarterly report pursuant to Section 13 or 15(d)

Other Assets

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Other Assets
 9 Months Ended
Nov. 30, 2024
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract]  
OTHER ASSETS OTHER ASSETS
The major components of other assets are as follows:
November 30,
2024		 February 29,
2024
(in millions)
Operating lease right-of-use asset $ 545.0  $ 615.3 
Equity method investments 151.0  170.6 
Assets held for sale
 110.5  25.7 
Other investments in debt and equity securities
 100.9  73.0 
Exchangeable Shares 58.7  — 
Derivative assets 46.6  154.9 
Other 133.4  100.5 
$ 1,146.1  $ 1,140.0 

Equity method investments
The carrying value of our equity method investments are as follows:
November 30,
2024		 February 29,
2024
(in millions)
Canopy Equity Method Investment (1)
$ —  $ 42.5 
Other equity method investments 151.0  128.1 
$ 151.0  $ 170.6 
(1)Following the April 2024 conversion to Exchangeable Shares we no longer apply the equity method.

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.

SVEDKA Divestiture
In January 2025, we completed the SVEDKA Divestiture and sold the related assets classified as held for sale. The SVEDKA net assets had met held for sale criteria as of November 30, 2024, and through the date of sale.

Other investments in debt and equity securities
We have multiple investments through our corporate venture capital function in debt and equity securities.

Exchangeable Shares
As of November 30, 2024, we evaluated the Exchangeable Shares for impairment primarily due to the business and industry factors that led to the decline in Canopy’s common share price since the date of conversion and exchange. We concluded that an impairment did exist, and accordingly, the Exchangeable Shares with a $97.3 million carrying value were written down to $58.7 million, their estimated fair value, resulting in a $38.6 million impairment. The estimated fair value was determined using the same valuation model as of the date of conversion and exchange as noted below. This loss from impairment was included in income (loss) from unconsolidated investments within our consolidated results for the nine months and three months ended November 30, 2024. Future impairments, if any, will also be reported in income (loss) from unconsolidated investments within our consolidated results.
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 for the nine months ended November 30, 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.