Quarterly report pursuant to Section 13 or 15(d)

Condensed Consolidating Financial Information

v2.4.0.6
Condensed Consolidating Financial Information
9 Months Ended
Nov. 30, 2012
Condensed Financial Information of Parent Company Only Disclosure [Abstract]  
CONDENSED CONSOLIDATING FINANCIAL INFORMATION
    CONDENSED CONSOLIDATING FINANCIAL INFORMATION:

The following information sets forth the condensed consolidating balance sheets as of November 30, 2012, and February 29, 2012, the condensed consolidating statements of comprehensive income for the nine months and three months ended November 30, 2012, and November 30, 2011, and the condensed consolidating statements of cash flows for the nine months ended November 30, 2012, and November 30, 2011, for the Company, the parent company, the combined subsidiaries of the Company which guarantee the Company’s senior notes (“Subsidiary Guarantors”) and the combined subsidiaries of the Company which are not Subsidiary Guarantors (primarily foreign subsidiaries) (“Subsidiary Nonguarantors”). The Subsidiary Guarantors are 100% owned, directly or indirectly, by the parent company and the guarantees are joint and several obligations of each of the Subsidiary Guarantors. The guarantees are full and unconditional, as those terms are used in Rule 3-10 of Regulation S-X, except that a Subsidiary Guarantor can be automatically released and relieved of its obligations under certain customary circumstances contained in the indentures governing the Company’s senior notes. These customary circumstances include, so long as other applicable provisions of the indentures are adhered to, the termination or release of a Subsidiary Guarantor’s guarantee of other indebtedness or upon the legal defeasance or covenant defeasance or satisfaction and discharge of the Company’s senior notes. Separate financial statements for the Subsidiary Guarantors of the Company are not presented because the Company has determined that such financial statements would not be material to investors. The accounting policies of the parent company, the Subsidiary Guarantors and the Subsidiary Nonguarantors are the same as those described for the Company in the Summary of Significant Accounting Policies in Note 1 to the Company’s consolidated financial statements included in the Company’s Annual Report on Form 10-K for the fiscal year ended February 29, 2012, and include the recently adopted accounting guidance described in Note 2 herein. There are no restrictions on the ability of the Subsidiary Guarantors to transfer funds to the Company in the form of cash dividends, loans or advances.

 
Parent
Company
 
Subsidiary
Guarantors
 
Subsidiary
Nonguarantors
 
Eliminations
 
Consolidated
(in millions)
 
 
 
 
 
 
 
 
 
Condensed Consolidating Balance Sheet at November 30, 2012
Current assets:
 
 
 
 
 
 
 
 
 
Cash and cash investments
$
89.3

 
$
2.2

 
$
109.0

 
$

 
$
200.5

Accounts receivable, net
373.7

 
77.5

 
87.9

 

 
539.1

Inventories
157.1

 
1,102.8

 
342.8

 
(6.4
)
 
1,596.3

Prepaid expenses and other
20.0

 
122.5

 
430.1

 
(427.9
)
 
144.7

Intercompany (payable) receivable
(1,194.0
)
 
1,107.8

 
86.2

 

 

Total current assets
(553.9
)
 
2,412.8

 
1,056.0

 
(434.3
)
 
2,480.6

 
Parent
Company
 
Subsidiary
Guarantors
 
Subsidiary
Nonguarantors
 
Eliminations
 
Consolidated
(in millions)
 
 
 
 
 
 
 
 
 
Property, plant and equipment, net
50.1

 
824.7

 
361.9

 

 
1,236.7

Investments in subsidiaries
7,117.4

 
174.0

 

 
(7,291.4
)
 

Goodwill

 
2,098.0

 
640.4

 

 
2,738.4

Intangible assets, net

 
687.2

 
189.4

 

 
876.6

Restricted cash
650.3

 

 

 

 
650.3

Other assets, net
58.6

 
241.1

 
59.4

 
(19.0
)
 
340.1

Total assets
$
7,322.5

 
$
6,437.8

 
$
2,307.1

 
$
(7,744.7
)
 
$
8,322.7

 
 
 
 
 
 
 
 
 
 
Current liabilities:
 
 
 
 
 
 
 
 
 
Notes payable to banks
$

 
$

 
$
16.6

 
$

 
$
16.6

Current maturities of long-term debt
34.3

 
15.5

 
0.1

 

 
49.9

Accounts payable
21.4

 
233.5

 
45.5

 

 
300.4

Accrued excise taxes
9.0

 
4.1

 
5.0

 

 
18.1

Other accrued expenses and liabilities
537.5

 
210.8

 
84.0

 
(429.5
)
 
402.8

Total current liabilities
602.2

 
463.9

 
151.2

 
(429.5
)
 
787.8

Long-term debt, less current maturities
3,908.2

 
20.7

 

 

 
3,928.9

Deferred income taxes
10.3

 
545.1

 
81.9

 
(18.9
)
 
618.4

Other liabilities
26.5

 
60.1

 
125.7

 

 
212.3

Stockholders’ equity
2,775.3

 
5,348.0

 
1,948.3

 
(7,296.3
)
 
2,775.3

Total liabilities and stockholders’ equity
$
7,322.5

 
$
6,437.8

 
$
2,307.1

 
$
(7,744.7
)
 
$
8,322.7

 
 
 
 
 
 
 
 
 
 
Condensed Consolidating Balance Sheet at February 29, 2012
Current assets:
 
 
 
 
 
 
 
 
 
Cash and cash investments
$
0.5

 
$
0.6

 
$
84.7

 
$

 
$
85.8

Accounts receivable, net
293.2

 
71.6

 
72.8

 

 
437.6

Inventories
143.0

 
916.8

 
322.0

 
(7.3
)
 
1,374.5

Prepaid expenses and other
22.5

 
116.5

 
398.6

 
(401.2
)
 
136.4

Intercompany (payable) receivable
(945.6
)
 
849.7

 
95.9

 

 

Total current assets
(486.4
)
 
1,955.2

 
974.0

 
(408.5
)
 
2,034.3

Property, plant and equipment, net
56.9

 
819.3

 
379.6

 

 
1,255.8

Investments in subsidiaries
6,704.7

 
166.6

 

 
(6,871.3
)
 

Goodwill

 
1,987.4

 
645.5

 

 
2,632.9

Intangible assets, net

 
673.4

 
193.0

 

 
866.4

Restricted cash

 

 

 

 

Other assets, net
20.7

 
263.3

 
60.2

 
(23.7
)
 
320.5

Total assets
$
6,295.9

 
$
5,865.2

 
$
2,252.3

 
$
(7,303.5
)
 
$
7,109.9

 
 
 
 
 
 
 
 
 
 
Current liabilities:
 
 
 
 
 
 
 
 
 
Notes payable to banks
$
297.9

 
$

 
$
80.0

 
$

 
$
377.9

Current maturities of long-term debt
324.3

 
5.7

 
0.2

 

 
330.2

Accounts payable
23.8

 
75.7

 
31.0

 

 
130.5

Accrued excise taxes
14.4

 
6.3

 
4.1

 

 
24.8

Other accrued expenses and liabilities
518.2

 
138.5

 
82.5

 
(403.0
)
 
336.2

Total current liabilities
1,178.6

 
226.2

 
197.8

 
(403.0
)
 
1,199.6

 
Parent
Company
 
Subsidiary
Guarantors
 
Subsidiary
Nonguarantors
 
Eliminations
 
Consolidated
(in millions)
 
 
 
 
 
 
 
 
 
Long-term debt, less current maturities
2,407.3

 
14.1

 

 

 
2,421.4

Deferred income taxes
2.7

 
534.5

 
95.1

 
(23.6
)
 
608.7

Other liabilities
31.3

 
53.5

 
119.4

 

 
204.2

Stockholders’ equity
2,676.0

 
5,036.9

 
1,840.0

 
(6,876.9
)
 
2,676.0

Total liabilities and stockholders’ equity
$
6,295.9

 
$
5,865.2

 
$
2,252.3

 
$
(7,303.5
)
 
$
7,109.9



 
Parent
Company
 
Subsidiary
Guarantors
 
Subsidiary
Nonguarantors
 
Eliminations
 
Consolidated
(in millions)
 
 
 
 
 
 
 
 
 
Condensed Consolidating Statement of Comprehensive Income for the Nine Months Ended November 30, 2012
Sales
$
1,536.7

 
$
1,283.5

 
$
623.7

 
$
(1,060.5
)
 
$
2,383.4

Less – excise taxes
(158.8
)
 
(74.8
)
 
(49.6
)
 

 
(283.2
)
Net sales
1,377.9

 
1,208.7

 
574.1

 
(1,060.5
)
 
2,100.2

Cost of product sold
(1,105.0
)
 
(857.5
)
 
(344.1
)
 
1,052.9

 
(1,253.7
)
Gross profit
272.9

 
351.2

 
230.0

 
(7.6
)
 
846.5

Selling, general and administrative expenses
(250.3
)
 
(80.5
)
 
(129.0
)
 
9.8

 
(450.0
)
Restructuring charges
1.1

 
(0.5
)
 
(1.7
)
 
0.1

 
(1.0
)
Operating income
23.7

 
270.2

 
99.3

 
2.3

 
395.5

Equity in earnings of equity method investees and subsidiaries
430.0

 
183.5

 
0.4

 
(430.3
)
 
183.6

Interest (expense) income, net
(256.5
)
 
86.2

 
3.6

 

 
(166.7
)
Loss on write-off of financing costs
(2.8
)
 

 

 

 
(2.8
)
Income before income taxes
194.4

 
539.9

 
103.3

 
(428.0
)
 
409.6

Benefit from (provision for) income taxes
111.7

 
(227.1
)
 
12.4

 
(0.5
)
 
(103.5
)
Net income
$
306.1

 
$
312.8

 
$
115.7

 
$
(428.5
)
 
$
306.1

Comprehensive income
$
297.7

 
$
311.7

 
$
108.6

 
$
(420.3
)
 
$
297.7

 
 
 
 
 
 
 
 
 
 
Condensed Consolidating Statement of Comprehensive Income for the Nine Months Ended November 30, 2011
Sales
$
850.3

 
$
1,345.8

 
$
528.0

 
$
(454.0
)
 
$
2,270.1

Less – excise taxes
(120.4
)
 
(75.1
)
 
(48.4
)
 

 
(243.9
)
Net sales
729.9

 
1,270.7

 
479.6

 
(454.0
)
 
2,026.2

Cost of product sold
(516.9
)
 
(809.1
)
 
(287.4
)
 
404.1

 
(1,209.3
)
Gross profit
213.0

 
461.6

 
192.2

 
(49.9
)
 
816.9

Selling, general and administrative expenses
(209.2
)
 
(153.2
)
 
(86.3
)
 
50.5

 
(398.2
)
Restructuring charges
(4.3
)
 
(4.2
)
 
(3.1
)
 

 
(11.6
)
Operating (loss) income
(0.5
)
 
304.2

 
102.8

 
0.6

 
407.1

Equity in earnings of equity method investees and subsidiaries
530.7

 
181.2

 
4.2

 
(536.6
)
 
179.5

Interest (expense) income, net
(187.9
)
 
50.0

 
4.8

 

 
(133.1
)
Loss on write-off of financing costs

 

 

 

 

Income before income taxes
342.3

 
535.4

 
111.8

 
(536.0
)
 
453.5

Provision for income taxes
(0.3
)
 
(98.3
)
 
(13.0
)
 
0.1

 
(111.5
)
Net income
$
342.0

 
$
437.1

 
$
98.8

 
$
(535.9
)
 
$
342.0

Comprehensive income
$
281.0

 
$
409.8

 
$
57.8

 
$
(467.6
)
 
$
281.0

 
 
 
 
 
 
 
 
 
 
 
Parent
Company
 
Subsidiary
Guarantors
 
Subsidiary
Nonguarantors
 
Eliminations
 
Consolidated
(in millions)
 
 
 
 
 
 
 
 
 
Condensed Consolidating Statement of Comprehensive Income for the Three Months Ended November 30, 2012
Sales
$
570.1

 
$
483.1

 
$
223.5

 
$
(416.3
)
 
$
860.4

Less – excise taxes
(55.4
)
 
(20.2
)
 
(17.9
)
 

 
(93.5
)
Net sales
514.7

 
462.9

 
205.6

 
(416.3
)
 
766.9

Cost of product sold
(424.3
)
 
(320.0
)
 
(124.8
)
 
413.0

 
(456.1
)
Gross profit
90.4

 
142.9

 
80.8

 
(3.3
)
 
310.8

Selling, general and administrative expenses
(82.8
)
 
(28.6
)
 
(44.3
)
 
4.0

 
(151.7
)
Restructuring charges
0.2

 
(0.1
)
 
(0.5
)
 
0.1

 
(0.3
)
Operating income
7.8

 
114.2

 
36.0

 
0.8

 
158.8

Equity in earnings of equity method investees and subsidiaries
141.4

 
53.9

 
0.2

 
(143.0
)
 
52.5

Interest (expense) income, net
(91.6
)
 
28.6

 
1.6

 

 
(61.4
)
Loss on write-off of financing costs

 

 

 

 

Income before income taxes
57.6

 
196.7

 
37.8

 
(142.2
)
 
149.9

Benefit from (provision for) income taxes
51.9

 
(96.1
)
 
4.0

 
(0.2
)
 
(40.4
)
Net income
$
109.5

 
$
100.6

 
$
41.8

 
$
(142.4
)
 
$
109.5

Comprehensive income
$
117.1

 
$
101.0

 
$
47.3

 
$
(148.3
)
 
$
117.1

 
 
 
 
 
 
 
 
 
 
Condensed Consolidating Statement of Comprehensive Income for the Three Months Ended November 30, 2011
Sales
$
513.6

 
$
426.5

 
$
182.0

 
$
(333.1
)
 
$
789.0

Less – excise taxes
(59.0
)
 
(12.5
)
 
(16.8
)
 

 
(88.3
)
Net sales
454.6

 
414.0

 
165.2

 
(333.1
)
 
700.7

Cost of product sold
(374.7
)
 
(279.2
)
 
(96.3
)
 
332.4

 
(417.8
)
Gross profit
79.9

 
134.8

 
68.9

 
(0.7
)
 
282.9

Selling, general and administrative expenses
(73.0
)
 
(32.7
)
 
(16.1
)
 

 
(121.8
)
Restructuring charges
1.2

 
(0.8
)
 
(1.2
)
 

 
(0.8
)
Operating income
8.1

 
101.3

 
51.6

 
(0.7
)
 
160.3

Equity in earnings of equity method investees and subsidiaries
248.9

 
54.5

 
1.6

 
(251.7
)
 
53.3

Interest (expense) income, net
(69.7
)
 
21.8

 
1.6

 

 
(46.3
)
Loss on write-off of financing costs

 

 

 

 

Income before income taxes
187.3

 
177.6

 
54.8

 
(252.4
)
 
167.3

(Provision for) benefit from income taxes
(82.5
)
 
26.2

 
(6.3
)
 
0.1

 
(62.5
)
Net income
$
104.8

 
$
203.8

 
$
48.5

 
$
(252.3
)
 
$
104.8

Comprehensive income (loss)
$
15.8

 
$
199.6

 
$
(42.2
)
 
$
(157.4
)
 
$
15.8



 
Parent
Company
 
Subsidiary
Guarantors
 
Subsidiary
Nonguarantors
 
Eliminations
 
Consolidated
(in millions)
 
 
 
 
 
 
 
 
 
Condensed Consolidating Statement of Cash Flows for the Nine Months Ended November 30, 2012
Net cash provided by (used in) operating activities
$
885.3

 
$
(546.2
)
 
$
49.9

 
$

 
$
389.0

 
 
 
 
 
 
 
 
 
 
Cash flows from investing activities:
 
 
 
 
 
 
 
 
 
Purchase of business, net of cash acquired

 
(159.3
)
 

 

 
(159.3
)
Purchases of property, plant and equipment
4.4

 
(45.7
)
 
(10.9
)
 

 
(52.2
)
Payments related to sale of business
(0.5
)
 

 

 

 
(0.5
)
Proceeds from sales of assets

 
4.9

 
3.1

 

 
8.0

Proceeds from notes receivable
1.2

 
3.4

 

 

 
4.6

Proceeds from redemption of available-for-sale debt securities

 

 

 

 

Other investing activities

 
0.2

 
(1.0
)
 

 
(0.8
)
Net cash provided by (used in) investing activities
5.1

 
(196.5
)
 
(8.8
)
 

 
(200.2
)
 
 
 
 
 
 
 
 
 
 
Cash flows from financing activities:
 
 
 
 
 
 
 
 
 
Intercompany financings, net
(793.3
)
 
749.5

 
43.8

 

 

Principal payments of long-term debt
(846.4
)
 
(5.2
)
 

 

 
(851.6
)
Payment of restricted cash upon issuance of long-term debt
(650.0
)
 

 

 

 
(650.0
)
Purchases of treasury stock
(383.0
)
 

 

 

 
(383.0
)
Net repayment of notes payable
(298.0
)
 

 
(58.0
)
 

 
(356.0
)
Payment of financing costs of long-term debt
(35.2
)
 

 

 

 
(35.2
)
Payment of minimum tax withholdings on stock-based payment awards

 

 
(0.5
)
 

 
(0.5
)
Proceeds from issuance of long-term debt
2,050.0

 

 

 

 
2,050.0

Proceeds from exercises of employee stock options
135.0

 

 

 

 
135.0

Excess tax benefits from stock-based payment awards
17.2

 

 

 

 
17.2

Proceeds from employee stock purchases
2.1

 

 

 

 
2.1

Net cash (used in) provided by financing activities
(801.6
)
 
744.3

 
(14.7
)
 

 
(72.0
)
 
 
 
 
 
 
 
 
 
 
Effect of exchange rate changes on cash and cash investments

 

 
(2.1
)
 

 
(2.1
)
 
 
 
 
 
 
 
 
 
 
Net increase in cash and cash investments
88.8

 
1.6

 
24.3

 

 
114.7

Cash and cash investments, beginning of period
0.5

 
0.6

 
84.7

 

 
85.8

Cash and cash investments, end of period
$
89.3

 
$
2.2

 
$
109.0

 
$

 
$
200.5

 
 
 
 
 
 
 
 
 
 
 
Parent
Company
 
Subsidiary
Guarantors
 
Subsidiary
Nonguarantors
 
Eliminations
 
Consolidated
(in millions)
 
 
 
 
 
 
 
 
 
Condensed Consolidating Statement of Cash Flows for the Nine Months Ended November 30, 2011
Net cash provided by operating activities
$
10.6

 
$
473.6

 
$
156.6

 
$

 
$
640.8

 
 
 
 
 
 
 
 
 
 
Cash flows from investing activities:
 
 
 
 
 
 
 
 
 
Purchase of business, net of cash acquired

 

 
(51.5
)
 

 
(51.5
)
Purchases of property, plant and equipment
(18.7
)
 
(26.0
)
 
(9.4
)
 

 
(54.1
)
Payments related to sale of business
(9.1
)
 

 
(17.8
)
 

 
(26.9
)
Proceeds from sales of assets

 
0.3

 
0.3

 

 
0.6

Proceeds from notes receivable
1.0

 

 

 

 
1.0

Proceeds from redemption of available-for-sale debt securities

 

 
20.2

 

 
20.2

Other investing activities

 
(6.1
)
 
(1.9
)
 

 
(8.0
)
Net cash used in investing activities
(26.8
)
 
(31.8
)

(60.1
)



(118.7
)
 
 
 
 
 
 
 
 
 
 
Cash flows from financing activities:
 
 
 
 
 
 
 
 
 
Intercompany financings, net
479.8

 
(423.7
)
 
(56.1
)
 

 

Principal payments of long-term debt
(410.2
)
 
(15.6
)
 
(44.7
)
 

 
(470.5
)
Payment of restricted cash upon issuance of long-term debt

 

 

 

 

Purchases of treasury stock
(281.3
)
 

 

 

 
(281.3
)
Net proceeds from notes payable
172.1

 

 
51.1

 

 
223.2

Payment of financing costs of long-term debt

 

 

 

 

Payment of minimum tax withholdings on stock-based payment awards

 
(1.7
)
 
(0.5
)
 

 
(2.2
)
Proceeds from issuance of long-term debt

 

 

 

 

Proceeds from exercises of employee stock options
42.3

 

 

 

 
42.3

Excess tax benefits from stock-based payment awards
11.1

 

 

 

 
11.1

Proceeds from employee stock purchases
2.4

 

 

 

 
2.4

Net cash provided by (used in) financing activities
16.2

 
(441.0
)
 
(50.2
)
 

 
(475.0
)
 
 
 
 
 
 
 
 
 
 
Effect of exchange rate changes on cash
and cash investments

 

 
(0.5
)
 

 
(0.5
)
 
 
 
 
 
 
 
 
 
 
Net increase in cash and cash investments

 
0.8

 
45.8

 

 
46.6

Cash and cash investments, beginning
of period
0.7

 
0.9

 
7.6

 

 
9.2

Cash and cash investments, end of
period
$
0.7

 
$
1.7

 
$
53.4

 
$

 
$
55.8