Quarterly report pursuant to Section 13 or 15(d)

Condensed Consolidating Financial Information

v2.4.0.6
Condensed Consolidating Financial Information
3 Months Ended
May 31, 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 May 31, 2012, and February 29, 2012, the condensed consolidating statements of comprehensive (loss) income for the three months ended May 31, 2012, and May 31, 2011, and the condensed consolidating statements of cash flows for the three months ended May 31, 2012, and May 31, 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 wholly-owned 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 May 31, 2012
Current assets:
 
 
 
 
 
 
 
 
 
Cash and cash investments
$
0.2

 
$
2.4

 
$
66.5

 
$

 
$
69.1

Accounts receivable, net
291.7

 
87.5

 
78.6

 

 
457.8

Inventories
150.2

 
864.6

 
318.5

 
(8.1
)
 
1,325.2

Prepaid expenses and other
22.2

 
113.4

 
398.1

 
(414.4
)
 
119.3

Intercompany (payable) receivable
(1,122.4
)
 
997.7

 
124.7

 

 

Total current assets
(658.1
)
 
2,065.6

 
986.4

 
(422.5
)
 
1,971.4

Property, plant and equipment, net
60.9

 
810.5

 
347.7

 

 
1,219.1

Investments in subsidiaries
6,755.2

 
164.4

 

 
(6,919.6
)
 

Goodwill

 
1,987.4

 
611.8

 

 
2,599.2

Intangible assets, net

 
672.5

 
182.2

 

 
854.7

Other assets, net
39.2

 
290.7

 
56.3

 
(22.4
)
 
363.8

Total assets
$
6,197.2

 
$
5,991.1

 
$
2,184.4

 
$
(7,364.5
)
 
$
7,008.2

 
 
 
 
 
 
 
 
 
 
Current liabilities:
 
 
 
 
 
 
 
 
 
Notes payable to banks
$
26.2

 
$

 
$
71.7

 
$

 
$
97.9

Current maturities of long-term debt
31.8

 
5.8

 
0.1

 

 
37.7

Accounts payable
18.5

 
56.1

 
42.6

 

 
117.2

Accrued excise taxes
13.5

 
5.8

 
4.1

 

 
23.4

Other accrued expenses and liabilities
496.6

 
160.3

 
71.2

 
(416.4
)
 
311.7

Total current liabilities
586.6

 
228.0

 
189.7

 
(416.4
)
 
587.9

Long-term debt, less current maturities
3,272.5

 
12.9

 

 

 
3,285.4

Deferred income taxes
4.2

 
540.2

 
85.1

 
(22.4
)
 
607.1

Other liabilities
34.1

 
69.9

 
124.0

 

 
228.0

Stockholders’ equity:
 
 
 
 
 
 
 
 
 
Preferred stock

 
9.0

 
1,180.8

 
(1,189.8
)
 

Class A and Class B Convertible Common Stock
2.6

 
100.7

 
27.0

 
(127.7
)
 
2.6

Additional paid-in capital
1,716.7

 
1,394.6

 
1,628.8

 
(3,023.4
)
 
1,716.7

Retained earnings (deficit)
2,179.3

 
3,630.1

 
(1,182.6
)
 
(2,447.5
)
 
2,179.3

Accumulated other comprehensive income
83.1

 
5.7

 
131.6

 
(137.3
)
 
83.1

Treasury stock
(1,681.9
)
 

 

 

 
(1,681.9
)
Total stockholders’ equity
2,299.8

 
5,140.1

 
1,785.6

 
(6,925.7
)
 
2,299.8

Total liabilities and stockholders’ equity
$
6,197.2

 
$
5,991.1

 
$
2,184.4

 
$
(7,364.5
)
 
$
7,008.2


 
Parent
Company
 
Subsidiary
Guarantors
 
Subsidiary
Nonguarantors
 
Eliminations
 
Consolidated
(in millions)
 
 
 
 
 
 
 
 
 
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

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

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:
 
 
 
 
 
 
 
 
 
Preferred stock

 
9.0

 
1,180.8

 
(1,189.8
)
 

Class A and Class B Convertible Common Stock
2.6

 
100.7

 
27.0

 
(127.7
)
 
2.6

Additional paid-in capital
1,691.4

 
1,394.6

 
1,621.2

 
(3,015.8
)
 
1,691.4

Retained earnings (deficit)
2,107.3

 
3,519.1

 
(1,209.2
)
 
(2,309.9
)
 
2,107.3

Accumulated other comprehensive income
173.7

 
13.5

 
220.2

 
(233.7
)
 
173.7

Treasury stock
(1,299.0
)
 

 

 

 
(1,299.0
)
Total 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 (Loss) Income for the Three Months Ended May 31, 2012
Sales
$
455.3

 
$
401.1

 
$
179.7

 
$
(310.8
)
 
$
725.3

Less – excise taxes
(48.6
)
 
(26.5
)
 
(15.4
)
 

 
(90.5
)
Net sales
406.7

 
374.6

 
164.3

 
(310.8
)
 
634.8

Cost of product sold
(338.2
)
 
(260.9
)
 
(92.3
)
 
307.2

 
(384.2
)
Gross profit
68.5

 
113.7

 
72.0

 
(3.6
)
 
250.6

Selling, general and administrative expenses
(82.6
)
 
(18.7
)
 
(47.7
)
 
5.0

 
(144.0
)
Restructuring charges
0.2

 
(0.4
)
 
(0.3
)
 

 
(0.5
)
Operating (loss) income
(13.9
)
 
94.6

 
24.0

 
1.4

 
106.1

Equity in earnings of equity method investees and subsidiaries
141.7

 
57.4

 
0.1

 
(138.6
)
 
60.6

Interest (expense) income, net
(80.3
)
 
28.7

 
0.9

 

 
(50.7
)
Loss on write-off of financing costs
(2.8
)
 

 

 

 
(2.8
)
Income before income taxes
44.7

 
180.7

 
25.0

 
(137.2
)
 
113.2

Benefit from (provision for) income taxes
27.3

 
(69.0
)
 
1.0

 
(0.5
)
 
(41.2
)
Net income
$
72.0

 
$
111.7

 
$
26.0

 
$
(137.7
)
 
$
72.0

Comprehensive (loss) income
$
(18.6
)
 
$
103.9

 
$
(62.6
)
 
$
(41.3
)
 
$
(18.6
)
 
 
 
 
 
 
 
 
 
 
Condensed Consolidating Statement of Comprehensive (Loss) Income for the Three Months Ended May 31, 2011
Sales
$
154.3

 
$
448.4

 
$
157.8

 
$
(49.8
)
 
$
710.7

Less – excise taxes
(30.0
)
 
(30.4
)
 
(15.0
)
 

 
(75.4
)
Net sales
124.3

 
418.0

 
142.8

 
(49.8
)
 
635.3

Cost of product sold
(62.9
)
 
(259.2
)
 
(87.4
)
 
25.2

 
(384.3
)
Gross profit
61.4

 
158.8

 
55.4

 
(24.6
)
 
251.0

Selling, general and administrative expenses
(68.2
)
 
(61.0
)
 
(34.8
)
 
25.8

 
(138.2
)
Restructuring charges
(5.5
)
 
(3.5
)
 
(2.1
)
 

 
(11.1
)
Operating (loss) income
(12.3
)
 
94.3

 
18.5

 
1.2

 
101.7

Equity in earnings of equity method investees and subsidiaries
132.1

 
61.7

 
1.6

 
(133.2
)
 
62.2

Interest (expense) income, net
(57.2
)
 
11.4

 
1.5

 

 
(44.3
)
Loss on write-off of financing costs

 

 

 

 

Income before income taxes
62.6

 
167.4

 
21.6

 
(132.0
)
 
119.6

Benefit from (provision for) income taxes
11.9

 
(55.0
)
 
(2.0
)
 

 
(45.1
)
Net income
$
74.5

 
$
112.4

 
$
19.6

 
$
(132.0
)
 
$
74.5

Comprehensive income
$
109.4

 
$
103.3

 
$
63.8

 
$
(167.1
)
 
$
109.4


 
Parent
Company
 
Subsidiary
Guarantors
 
Subsidiary
Nonguarantors
 
Eliminations
 
Consolidated
(in millions)
 
 
 
 
 
 
 
 
 
Condensed Consolidating Statement of Cash Flows for the Three Months Ended May 31, 2012
Net cash provided by (used in) operating activities
$
56.1

 
$
74.0

 
$
(33.7
)
 
$

 
$
96.4

 
 
 
 
 
 
 
 
 
 
Cash flows from investing activities:
 
 
 
 
 
 
 
 
 
Purchases of property, plant and equipment
(4.7
)
 
(11.9
)
 
(3.0
)
 

 
(19.6
)
Proceeds from sales of assets

 
4.8

 
2.9

 

 
7.7

Proceeds from notes receivable
1.2

 
0.5

 

 

 
1.7

Payments related to sale of business

 

 

 

 

Other investing activities

 
(0.8
)
 
(0.1
)
 

 
(0.9
)
Net cash used in investing activities
(3.5
)
 
(7.4
)
 
(0.2
)
 

 
(11.1
)
 
 
 
 
 
 
 
 
 
 
Cash flows from financing activities:
 
 
 
 
 
 
 
 
 
Intercompany financings, net
40.5

 
(63.3
)
 
22.8

 

 

Principal payments of long-term debt
(830.8
)
 
(1.4
)
 

 

 
(832.2
)
Purchases of treasury stock
(383.0
)
 

 

 

 
(383.0
)
Net repayment of notes payable
(271.8
)
 

 
(2.6
)
 

 
(274.4
)
Payment of financing costs of long-term debt
(22.8
)
 

 

 

 
(22.8
)
Payment of minimum tax withholdings on stock-based payment awards

 
(0.1
)
 
(0.4
)
 

 
(0.5
)
Proceeds from issuance of long-term debt
1,400.0

 

 

 

 
1,400.0

Proceeds from exercises of employee stock options
12.4

 

 

 

 
12.4

Proceeds from excess tax benefits from stock-based payment awards
2.6

 

 

 

 
2.6

Net cash (used in) provided by financing activities
(52.9
)
 
(64.8
)
 
19.8

 

 
(97.9
)
 
 
 
 
 
 
 
 
 
 
Effect of exchange rate changes on cash and cash investments

 

 
(4.1
)
 

 
(4.1
)
 
 
 
 
 
 
 
 
 
 
Net (decrease) increase in cash and cash investments
(0.3
)
 
1.8

 
(18.2
)
 

 
(16.7
)
Cash and cash investments, beginning of period
0.5

 
0.6

 
84.7

 

 
85.8

Cash and cash investments, end of period
$
0.2

 
$
2.4

 
$
66.5

 
$

 
$
69.1

 
Parent
Company
 
Subsidiary
Guarantors
 
Subsidiary
Nonguarantors
 
Eliminations
 
Consolidated
(in millions)
 
 
 
 
 
 
 
 
 
Condensed Consolidating Statement of Cash Flows for the Three Months Ended May 31, 2011
Net cash provided by operating activities
$
21.8

 
$
206.9

 
$
12.6

 
$

 
$
241.3

 
 
 
 
 
 
 
 
 
 
Cash flows from investing activities:
 
 
 
 
 
 
 
 
 
Purchases of property, plant and equipment
(8.2
)
 
(10.2
)
 
(2.6
)
 

 
(21.0
)
Proceeds from sales of assets

 

 
0.1

 

 
0.1

Proceeds from notes receivable
1.0

 

 

 

 
1.0

Payments related to sale of business
(7.5
)
 

 

 

 
(7.5
)
Other investing activities

 
(5.0
)
 
(1.4
)
 

 
(6.4
)
Net cash used in investing activities
(14.7
)
 
(15.2
)
 
(3.9
)
 

 
(33.8
)
 
 
 
 
 
 
 
 
 
 
Cash flows from financing activities:
 
 
 
 
 
 
 
 
 
Intercompany financings, net
200.1

 
(176.2
)
 
(23.9
)
 

 

Principal payments of long-term debt
(403.6
)
 
(13.7
)
 

 

 
(417.3
)
Purchases of treasury stock

 

 

 

 

Net proceeds from notes payable
149.8

 

 
18.7

 

 
168.5

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
36.5

 

 

 

 
36.5

Proceeds from excess tax benefits
from stock-based payment awards
9.9

 

 

 

 
9.9

Net cash used in financing activities
(7.3
)
 
(191.6
)
 
(5.7
)
 

 
(204.6
)
 
 
 
 
 
 
 
 
 
 
Effect of exchange rate changes on cash
and cash investments

 

 
1.3

 

 
1.3

 
 
 
 
 
 
 
 
 
 
Net (decrease) increase in cash and cash
investments
(0.2
)
 
0.1

 
4.3

 

 
4.2

Cash and cash investments, beginning
of period
0.7

 
0.9

 
7.6

 

 
9.2

Cash and cash investments, end of
period
$
0.5

 
$
1.0

 
$
11.9

 
$

 
$
13.4