Annual report [Section 13 and 15(d), not S-K Item 405]

Other Assets

v3.25.1
Other Assets
 12 Months Ended
Feb. 28, 2025
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract]  
OTHER ASSETS OTHER ASSETS
The major components of other assets are as follows:
February 28,
2025		 February 29,
2024
(in millions)
Operating lease right-of-use asset $ 545.7  $ 615.3 
Income taxes receivable
 135.5  — 
Equity method investments 124.5  170.6 
Other investments in debt and equity securities
 60.3  73.0 
Derivative assets 41.6  154.9 
Exchangeable Shares 21.2  — 
Other 132.9  126.2 
$ 1,061.7  $ 1,140.0 
Equity method investments
The carrying value of our equity method investments are as follows:
February 28,
2025		 February 29,
2024
(in millions)
Canopy Equity Method Investment (1)
$ —  $ 42.5 
Other equity method investments 124.5  128.1 
$ 124.5  $ 170.6 
(1)Following the April 2024 conversion to Exchangeable Shares we no longer apply the equity method.

Other investments in debt and equity securities
We have multiple investments through our corporate venture capital function in debt and equity securities. As of February 28, 2025, we evaluated certain investments, primarily driven by business underperformance and solvency concerns, and concluded they should be written down to zero resulting in a loss of $47.9 million. This loss on securities measured at fair value was included in income (loss) from unconsolidated investments within our consolidated results for the year ended February 28, 2025.

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 wrote down the Exchangeable Shares to their estimated fair value. Due to the continued decline in Canopy’s common share price, as of February 28, 2025, we evaluated the Exchangeable Shares for an additional impairment. We concluded an impairment did exist, and accordingly, the Exchangeable Shares with a $97.3 million carrying value at the April 2024 date of conversion and exchange were written down to $21.2 million, their estimated fair value as of February 28, 2025, resulting in a $76.1 million total impairment. The estimated fair values were determined using the same valuation model as of the date of conversion and exchange as noted below. This total loss from impairment was included in income (loss) from unconsolidated investments within our consolidated results for the year ended February 28, 2025. 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 year ended February 28, 2025. 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.