| Segment Information |
Segment information is as follows:
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Beer |
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Wine and
Spirits
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Corporate
Operations
and Other
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Consolidated |
(in millions) |
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| For the Year Ended February 28, 2025 |
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Net sales |
$ |
8,539.8 |
|
$ |
1,668.9 |
|
$ |
— |
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$ |
10,208.7 |
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Cost of product sold (1)
|
(3,973.7) |
|
(926.6) |
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— |
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| Marketing |
(769.0) |
|
(162.2) |
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— |
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| % Net sales |
9.0 |
% |
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9.7 |
% |
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General and administrative expenses (1)
|
(402.7) |
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(255.0) |
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(244.6) |
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Comparable operating income (loss) (1)
|
$ |
3,394.4 |
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$ |
325.1 |
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$ |
(244.6) |
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3,474.9 |
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Operating margin |
39.7 |
% |
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19.5 |
% |
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Comparable adjustments (2)
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(3,120.0) |
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Operating income (loss) |
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354.9 |
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Income (loss) from unconsolidated investments (3)
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(26.3) |
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Interest expense, net (4)
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(411.4) |
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Income (loss) before income taxes |
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$ |
(82.8) |
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| Capital expenditures |
$ |
991.5 |
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$ |
177.0 |
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$ |
45.6 |
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$ |
1,214.1 |
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| Depreciation and amortization |
$ |
341.1 |
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$ |
84.2 |
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$ |
21.7 |
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$ |
447.0 |
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| % Net sales |
4.0 |
% |
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5.0 |
% |
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| For the Year Ended February 29, 2024 |
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| Net sales |
$ |
8,162.6 |
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$ |
1,799.2 |
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$ |
— |
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$ |
9,961.8 |
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Cost of product sold (1)
|
(3,948.4) |
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|
(963.1) |
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— |
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| Marketing |
(688.5) |
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|
(165.0) |
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— |
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| % Net sales |
8.4 |
% |
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9.2 |
% |
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General and administrative expenses (1)
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(431.3) |
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(272.4) |
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(247.6) |
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Comparable operating income (loss) (1)
|
$ |
3,094.4 |
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$ |
398.7 |
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$ |
(247.6) |
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3,245.5 |
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Operating margin |
37.9 |
% |
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22.2 |
% |
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Comparable adjustments (2)
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(75.8) |
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| Operating income (loss) |
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3,169.7 |
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Income (loss) from unconsolidated investments (3)
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(511.8) |
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Interest expense, net (4)
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(436.1) |
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| Income (loss) before income taxes |
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$ |
2,221.8 |
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| Capital expenditures |
$ |
947.9 |
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$ |
185.6 |
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$ |
135.6 |
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$ |
1,269.1 |
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| Depreciation and amortization |
$ |
323.9 |
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$ |
88.8 |
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$ |
16.5 |
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$ |
429.2 |
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| % Net sales |
4.0 |
% |
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4.9 |
% |
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| For the Year Ended February 28, 2023 |
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| Net sales |
$ |
7,465.0 |
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$ |
1,987.6 |
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$ |
— |
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$ |
9,452.6 |
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Cost of product sold (1)
|
(3,527.2) |
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|
(1,060.4) |
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— |
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| Marketing |
(676.8) |
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(184.0) |
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— |
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| % Net sales |
9.1 |
% |
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9.3 |
% |
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General and administrative expenses (1)
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(399.6) |
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(290.1) |
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(277.9) |
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Comparable operating income (loss) (1)
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$ |
2,861.5 |
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$ |
453.1 |
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$ |
(277.9) |
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3,036.7 |
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Operating margin |
38.3 |
% |
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22.8 |
% |
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Comparable adjustments (2)
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(193.8) |
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| Operating income (loss) |
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2,842.9 |
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Income (loss) from unconsolidated investments (3)
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(2,036.4) |
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Interest expense, net (4)
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(422.9) |
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| Income (loss) before income taxes |
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$ |
383.6 |
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| Capital expenditures |
$ |
813.9 |
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$ |
151.8 |
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$ |
69.7 |
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$ |
1,035.4 |
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| Depreciation and amortization |
$ |
285.4 |
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$ |
83.2 |
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$ |
18.4 |
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$ |
387.0 |
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| % Net sales |
3.8 |
% |
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4.2 |
% |
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(1)Amounts are determined and presented on a non-GAAP basis and are intended to reflect our core operations.
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(3) |
Income (loss) from unconsolidated investments consists of: |
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For the Years Ended |
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February 28,
2025 |
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February 29,
2024 |
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February 28,
2023 |
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(in millions) |
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Unrealized net gain (loss) on securities measured at fair value (ii)
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$ |
(47.9) |
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$ |
(85.4) |
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$ |
(45.9) |
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Equity method investments impairment |
(8.7) |
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(136.1) |
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(1,060.3) |
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Equity in earnings (losses) from other equity method investees and related activities |
23.1 |
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31.0 |
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19.1 |
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Net gain in connection with Exchangeable Shares (ii)
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7.2 |
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— |
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— |
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Equity in earnings (losses) from Canopy and related activities |
— |
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(321.3) |
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(949.3) |
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$ |
(26.3) |
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$ |
(511.8) |
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$ |
(2,036.4) |
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(ii) |
Effective as of May 31, 2023, we determined that the 2023 Canopy Promissory Note did not have future economic value given the substantial doubt about Canopy’s ability to continue as a going concern, as disclosed by Canopy, prior to the maturity of the note. Accordingly, the fair value of the remaining balance for this instrument was determined to be zero. In April 2024, we exchanged the 2023 Canopy Promissory Note for Exchangeable Shares. Additionally, as of November 30, 2024 and February 28, 2025, we impaired our Exchangeable Shares. |
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(4) |
Interest expense, net consists of: |
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For the Years Ended |
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February 28, 2025 |
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February 29, 2024 |
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February 28, 2023 |
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(in millions) |
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Interest expense |
$ |
(418.4) |
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$ |
(443.6) |
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$ |
(415.9) |
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Interest income |
7.0 |
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8.2 |
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17.2 |
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Loss on extinguishment of debt |
— |
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(0.7) |
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(24.2) |
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$ |
(411.4) |
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$ |
(436.1) |
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$ |
(422.9) |
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| Comparable Adjustments |
Comparable Adjustments that impacted comparability in our segment operating income (loss) for each period are as follows:
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For the Years Ended |
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February 28,
2025 |
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February 29,
2024 |
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February 28,
2023 |
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(in millions) |
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Cost of product sold |
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Strategic business reconfiguration costs |
$ |
(10.7) |
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$ |
— |
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$ |
(1.2) |
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Flow through of inventory step-up |
(10.2) |
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(3.6) |
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(4.5) |
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Net gain (loss) on undesignated commodity derivative contracts |
(0.3) |
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(44.2) |
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(15.0) |
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Settlements of undesignated commodity derivative contracts |
26.8 |
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15.0 |
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(76.7) |
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Other gains (losses) |
0.6 |
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— |
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1.4 |
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Comparable Adjustments, Cost of product sold |
6.2 |
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(32.8) |
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(96.0) |
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Selling, general, and administrative expenses |
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Restructuring and other strategic business reconfiguration costs |
(79.3) |
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(46.3) |
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(9.9) |
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Transition services agreements activity |
(22.6) |
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(24.9) |
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(20.5) |
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Transaction, integration, and other acquisition-related costs |
(1.2) |
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(0.6) |
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(1.4) |
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Insurance recoveries |
— |
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55.1 |
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5.2 |
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Long-lived assets impairment |
— |
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— |
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(53.5) |
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Other gains (losses) (i)
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(13.4) |
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(11.2) |
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(19.7) |
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Comparable Adjustments, selling, general, and administrative expenses |
(116.5) |
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(27.9) |
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(99.8) |
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Goodwill and intangible assets impairment |
(2,797.7) |
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— |
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(13.0) |
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Assets held for sale impairment |
(478.0) |
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— |
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— |
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Gain (loss) on sale of business |
266.0 |
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(15.1) |
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15.0 |
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Comparable Adjustments, Operating income (loss) |
$ |
(3,120.0) |
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$ |
(75.8) |
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$ |
(193.8) |
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(i) |
Primarily includes the following: |
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For the Years Ended |
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February 28,
2025 |
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February 29,
2024 |
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February 28,
2023 |
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(in millions) |
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Net loss on foreign currency as a result of the resolution of various tax examinations and assessments |
$ |
(20.7) |
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$ |
— |
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$ |
— |
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Decreases in estimated fair values of contingent liabilities associated with prior period acquisitions |
$ |
7.0 |
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$ |
2.0 |
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$ |
12.9 |
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Net loss from changes in the indemnification of liabilities associated with prior period divestitures |
$ |
— |
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$ |
(12.7) |
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$ |
— |
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Costs associated with the Reclassification |
$ |
— |
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$ |
0.2 |
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$ |
(37.8) |
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Gain from remeasurement of previously held equity method investments |
$ |
— |
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$ |
— |
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$ |
5.2 |
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| Geographic Data |
Geographic data is as follows:
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For the Years Ended |
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February 28,
2025 |
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February 29,
2024 |
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February 28,
2023 |
| (in millions) |
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| Net sales |
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| U.S. |
$ |
10,016.4 |
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$ |
9,748.1 |
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$ |
9,194.5 |
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Non-U.S. (1)
|
192.3 |
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|
213.7 |
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|
258.1 |
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$ |
10,208.7 |
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$ |
9,961.8 |
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$ |
9,452.6 |
|
(1)Consists primarily of Canada and Italy for the year ended February 28, 2025, and primarily of Canada and New Zealand for the years ended February 29, 2024, and February 28, 2023.
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February 28,
2025 |
|
February 29,
2024 |
| (in millions) |
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Long-lived tangible assets (1)
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| U.S. |
$ |
898.9 |
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$ |
1,304.6 |
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| Non-U.S. (primarily Mexico) |
6,510.9 |
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|
6,750.6 |
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$ |
7,409.8 |
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$ |
8,055.2 |
|
(1)Long-lived tangible assets balance at February 28, 2025, and February 29, 2024, excludes amounts reclassified to assets held for sale.
|