Cover Page
Cover Page - shares | 6 Months Ended | |
Aug. 31, 2019 | Sep. 30, 2019 | |
Entity Central Index Key | 0000016918 | |
Amendment Flag | false | |
Document Fiscal Year Focus | 2020 | |
Document Fiscal Period Focus | Q2 | |
Current Fiscal Year End Date | --02-29 | |
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Aug. 31, 2019 | |
Document Transition Report | false | |
Entity File Number | 001-08495 | |
Entity Registrant Name | CONSTELLATION BRANDS, INC. | |
Entity Incorporation, State or Country Code | DE | |
Entity Tax Identification Number | 16-0716709 | |
Entity Address, Address Line One | 207 High Point Drive | |
Entity Address, Address Line Two | Building 100 | |
Entity Address, City or Town | Victor | |
Entity Address, State or Province | NY | |
Entity Address, Postal Zip Code | 14564 | |
City Area Code | 585 | |
Local Phone Number | 678-7100 | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Large Accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Class A Common Stock [Member] | ||
Title of 12(b) Security | Class A Common Stock | |
Trading Symbol | STZ | |
Security Exchange Name | NYSE | |
Entity Common Stock, Shares Outstanding | 167,498,276 | |
Class B Common Stock [Member] | ||
Title of 12(b) Security | Class B Common Stock | |
Trading Symbol | STZ.B | |
Security Exchange Name | NYSE | |
Entity Common Stock, Shares Outstanding | 23,314,407 | |
Class 1 Common Stock [Member] | ||
Entity Common Stock, Shares Outstanding | 823,377 |
Consolidated Balance Sheets (Un
Consolidated Balance Sheets (Unaudited) - USD ($) $ in Millions | Aug. 31, 2019 | Feb. 28, 2019 |
Current assets: | ||
Cash and cash equivalents | $ 81.3 | $ 93.6 |
Accounts receivable | 953.7 | 846.9 |
Inventories | 1,311.4 | 2,130.4 |
Prepaid expenses and other | 525.1 | 613.1 |
Assets held for sale - current | 666 | 0 |
Total current assets | 3,537.5 | 3,684 |
Property, plant, and equipment | 5,141.6 | 5,267.3 |
Goodwill | 7,696.7 | 8,088.8 |
Intangible assets | 2,787 | 3,198.1 |
Equity method investments | 3,003.8 | 3,465.6 |
Securities measured at fair value | 1,572.2 | 3,234.7 |
Deferred income taxes | 2,146.8 | 2,183.3 |
Assets held for sale | 1,019.1 | 0 |
Other assets | 650.4 | 109.7 |
Total assets | 27,555.1 | 29,231.5 |
Current liabilities: | ||
Short-term borrowings | 150.9 | 791.5 |
Current maturities of long-term debt | 636.1 | 1,065.2 |
Accounts payable | 608.6 | 616.7 |
Other accrued expenses and liabilities | 800.3 | 690.4 |
Total current liabilities | 2,195.9 | 3,163.8 |
Long-term debt, less current maturities | 12,159.8 | 11,759.8 |
Deferred income taxes and other liabilities | 1,508.4 | 1,470.7 |
Total liabilities | 15,864.1 | 16,394.3 |
Commitments and contingencies | ||
CBI stockholders’ equity: | ||
Additional paid-in capital | 1,452.1 | 1,410.8 |
Retained earnings | 13,221.4 | 14,276.2 |
Accumulated other comprehensive income (loss) | (476.6) | (353.9) |
Total stockholders’ equity before treasury stock adjustments | 14,199.1 | 15,335.3 |
Less: Treasury stock – | (2,821.6) | (2,784.3) |
Total CBI stockholders’ equity | 11,377.5 | 12,551 |
Noncontrolling interests | 313.5 | 286.2 |
Total stockholders’ equity | 11,691 | 12,837.2 |
Total liabilities and stockholders’ equity | 27,555.1 | 29,231.5 |
Class A Common Stock [Member] | ||
CBI stockholders’ equity: | ||
Common stock, value | 1.9 | 1.9 |
Less: Treasury stock – | (2,819.4) | (2,782.1) |
Class B Convertible Common Stock [Member] | ||
CBI stockholders’ equity: | ||
Common stock, value | 0.3 | 0.3 |
Less: Treasury stock – | $ (2.2) | $ (2.2) |
Consolidated Balance Sheets (_2
Consolidated Balance Sheets (Unaudited) (Parenthetical) - $ / shares | Aug. 31, 2019 | Feb. 28, 2019 |
Class A Common Stock [Member] | ||
Common stock, par value | $ 0.01 | $ 0.01 |
Common stock, shares authorized | 322,000,000 | 322,000,000 |
Common stock, shares issued | 185,880,112 | 185,740,178 |
Treasury stock, shares at cost | 18,604,964 | 18,927,966 |
Class B Convertible Common Stock [Member] | ||
Common stock, par value | $ 0.01 | $ 0.01 |
Common stock, shares authorized | 30,000,000 | 30,000,000 |
Common stock, shares issued | 28,321,821 | 28,322,419 |
Treasury stock, shares at cost | 5,005,800 | 5,005,800 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income (Loss) (Unaudited) - USD ($) shares in Thousands, $ in Millions | 3 Months Ended | 6 Months Ended | ||
Aug. 31, 2019 | Aug. 31, 2018 | Aug. 31, 2019 | Aug. 31, 2018 | |
Sales | $ 2,573.4 | $ 2,525.7 | $ 4,855.9 | $ 4,755.7 |
Excise taxes | (229.4) | (226.6) | (414.7) | (409.5) |
Net sales | 2,344 | 2,299.1 | 4,441.2 | 4,346.2 |
Cost of product sold | (1,158.1) | (1,130.9) | (2,226.6) | (2,129.4) |
Gross profit | 1,185.9 | 1,168.2 | 2,214.6 | 2,216.8 |
Selling, general, and administrative expenses | (466.4) | (403.2) | (872.4) | (826.4) |
Operating income (loss) | 719.5 | 765 | 1,342.2 | 1,390.4 |
Income (loss) from unconsolidated investments | (1,324.7) | 688.4 | (2,255.3) | 1,052.8 |
Interest expense | (111.6) | (88) | (226.2) | (175.8) |
Loss on extinguishment of debt | (2.4) | 0 | (2.4) | 0 |
Income (loss) before income taxes | (719.2) | 1,365.4 | (1,141.7) | 2,267.4 |
(Provision for) benefit from income taxes | 202.2 | (214.1) | 387.6 | (369.8) |
Net income (loss) | (517) | 1,151.3 | (754.1) | 1,897.6 |
Net income (loss) attributable to noncontrolling interests | (8.2) | (1.8) | (16.5) | (4.3) |
Net income (loss) attributable to CBI | (525.2) | 1,149.5 | (770.6) | 1,893.3 |
Comprehensive income (loss) | (646.4) | 1,232.6 | (886.2) | 1,793.5 |
Comprehensive (income) loss attributable to noncontrolling interests | 0.1 | (9.1) | (7.1) | (1.9) |
Comprehensive income (loss) attributable to CBI | (646.3) | 1,223.5 | (893.3) | 1,791.6 |
Class A Common Stock [Member] | ||||
Net income (loss) attributable to CBI | $ (466.4) | $ 1,020 | $ (684.1) | $ 1,680.7 |
Net income (loss) per common share attributable to CBI: | ||||
Net income (loss) per common share attributable to CBI, basic (in dollars per share) | $ (2.77) | $ 6.11 | $ (4.08) | $ 10.03 |
Net income (loss) per common share attributable to CBI, diluted (in dollars per share) | $ (2.77) | $ 5.87 | $ (4.08) | $ 9.64 |
Weighted average common shares outstanding: | ||||
Weighted average common shares outstanding, basic | 168,310 | 167,172 | 168,215 | 167,617 |
Weighted average common shares outstanding, diluted | 168,310 | 195,907 | 168,215 | 196,468 |
Cash dividends declared per common share: | ||||
Cash dividends declared per common share | $ 0.75 | $ 0.74 | $ 1.50 | $ 1.48 |
Class B Convertible Common Stock [Member] | ||||
Net income (loss) attributable to CBI | $ (58.8) | $ 129.5 | $ (86.5) | $ 212.6 |
Net income (loss) per common share attributable to CBI: | ||||
Net income (loss) per common share attributable to CBI, basic (in dollars per share) | $ (2.52) | $ 5.55 | $ (3.71) | $ 9.11 |
Net income (loss) per common share attributable to CBI, diluted (in dollars per share) | $ (2.52) | $ 5.41 | $ (3.71) | $ 8.89 |
Weighted average common shares outstanding: | ||||
Weighted average common shares outstanding, basic | 23,316 | 23,323 | 23,316 | 23,325 |
Weighted average common shares outstanding, diluted | 23,316 | 23,323 | 23,316 | 23,325 |
Cash dividends declared per common share: | ||||
Cash dividends declared per common share | $ 0.68 | $ 0.67 | $ 1.36 | $ 1.34 |
Consolidated Statements of Chan
Consolidated Statements of Changes in Stockholders' Equity (Unaudited) - USD ($) $ in Millions | Total | Parent [Member] | Common Stock [Member]Class A Common Stock [Member] | Common Stock [Member]Class B Convertible Common Stock [Member] | Additional Paid-in Capital [Member] | Retained Earnings [Member] | Accumulated Other Comprehensive Income (Loss) [Member] | Treasury Stock [Member] | Noncontrolling Interest [Member] |
Stockholders' equity, beginning of period at Feb. 28, 2018 | $ 7,991.7 | $ 2.6 | $ 0.3 | $ 2,825.3 | $ 9,157.2 | $ (202.9) | $ (3,807.4) | $ 16.6 | |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||
Net income (loss) | 746.3 | 0 | 0 | 0 | 743.8 | 0 | 0 | 2.5 | |
Other comprehensive income (loss), net of income tax effect | (185.4) | 0 | 0 | 0 | 0 | (175.7) | 0 | (9.7) | |
Comprehensive income (loss) | 560.9 | ||||||||
Dividends declared | (140.6) | 0 | 0 | 0 | (140.6) | 0 | 0 | 0 | |
Shares issued under equity compensation plans | (5.4) | 0 | 0 | (7.7) | 0 | 0 | 2.3 | 0 | |
Stock-based compensation | 17.2 | 0 | 0 | 17.2 | 0 | 0 | 0 | 0 | |
Stockholders' equity, end of period at May. 31, 2018 | 10,565.8 | 2.6 | 0.3 | 2,834.8 | 12,002.4 | (378.6) | (3,905.1) | 9.4 | |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||
Repurchase of shares | (100) | 0 | 0 | 0 | 0 | 0 | (100) | 0 | |
Stockholders' equity, beginning of period at Feb. 28, 2018 | 7,991.7 | 2.6 | 0.3 | 2,825.3 | 9,157.2 | (202.9) | (3,807.4) | 16.6 | |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||
Net income (loss) | 1,897.6 | $ 1,893.3 | |||||||
Other comprehensive income (loss), net of income tax effect | (101.7) | ||||||||
Comprehensive income (loss) | 1,793.5 | ||||||||
Stockholders' equity, end of period at Aug. 31, 2018 | 11,535.2 | 2.6 | 0.3 | 2,865.3 | 13,012.9 | (304.6) | (4,308.2) | 266.9 | |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||
Conversion of long-term debt to noncontrolling equity interest | 248.4 | ||||||||
Stockholders' equity, beginning of period at May. 31, 2018 | 10,565.8 | 2.6 | 0.3 | 2,834.8 | 12,002.4 | (378.6) | (3,905.1) | 9.4 | |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||
Net income (loss) | 1,151.3 | 1,149.5 | 0 | 0 | 0 | 1,149.5 | 0 | 0 | 1.8 |
Other comprehensive income (loss), net of income tax effect | 81.3 | 0 | 0 | 0 | 0 | 74 | 0 | 7.3 | |
Comprehensive income (loss) | 1,232.6 | ||||||||
Dividends declared | (139) | 0 | 0 | 0 | (139) | 0 | 0 | 0 | |
Shares issued under equity compensation plans | 13.5 | 0 | 0 | 12.3 | 0 | 0 | 1.2 | 0 | |
Stock-based compensation | 18.2 | 0 | 0 | 18.2 | 0 | 0 | 0 | 0 | |
Stockholders' equity, end of period at Aug. 31, 2018 | 11,535.2 | 2.6 | 0.3 | 2,865.3 | 13,012.9 | (304.6) | (4,308.2) | 266.9 | |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||
Repurchase of shares | (404.3) | 0 | 0 | 0 | 0 | 0 | (404.3) | 0 | |
Conversion of long-term debt to noncontrolling equity interest | 248.4 | 0 | 0 | 0 | 0 | 0 | 0 | 248.4 | |
Stockholders' equity, beginning of period at Feb. 28, 2019 | 12,837.2 | 1.9 | 0.3 | 1,410.8 | 14,276.2 | (353.9) | (2,784.3) | 286.2 | |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||
Net income (loss) | (237.1) | 0 | 0 | 0 | (245.4) | 0 | 0 | 8.3 | |
Other comprehensive income (loss), net of income tax effect | (2.7) | 0 | 0 | 0 | 0 | (1.6) | 0 | (1.1) | |
Comprehensive income (loss) | (239.8) | ||||||||
Dividends declared | (141.9) | 0 | 0 | 0 | (141.9) | 0 | 0 | 0 | |
Initial recognition of non-controlling interest | 20.2 | 0 | 0 | 0 | 0 | 0 | 0 | 20.2 | |
Shares issued under equity compensation plans | (3) | 0 | 0 | (9.3) | 0 | 0 | 6.3 | 0 | |
Stock-based compensation | 15.5 | 0 | 0 | 15.5 | 0 | 0 | 0 | 0 | |
Stockholders' equity, end of period at May. 31, 2019 | 12,488.2 | 1.9 | 0.3 | 1,417 | 13,888.9 | (355.5) | (2,778) | 313.6 | |
Stockholders' equity, beginning of period at Feb. 28, 2019 | 12,837.2 | 1.9 | 0.3 | 1,410.8 | 14,276.2 | (353.9) | (2,784.3) | 286.2 | |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||
Net income (loss) | (754.1) | (770.6) | |||||||
Other comprehensive income (loss), net of income tax effect | (122.7) | ||||||||
Comprehensive income (loss) | (886.2) | ||||||||
Stockholders' equity, end of period at Aug. 31, 2019 | 11,691 | 1.9 | 0.3 | 1,452.1 | 13,221.4 | (476.6) | (2,821.6) | 313.5 | |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||
Conversion of long-term debt to noncontrolling equity interest | 0 | ||||||||
Stockholders' equity, beginning of period at May. 31, 2019 | 12,488.2 | 1.9 | 0.3 | 1,417 | 13,888.9 | (355.5) | (2,778) | 313.6 | |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||
Net income (loss) | (517) | $ (525.2) | 0 | 0 | 0 | (525.2) | 0 | 0 | 8.2 |
Other comprehensive income (loss), net of income tax effect | (129.4) | 0 | 0 | 0 | 0 | (121.1) | 0 | (8.3) | |
Comprehensive income (loss) | (646.4) | ||||||||
Dividends declared | (142.3) | 0 | 0 | 0 | (142.3) | 0 | 0 | 0 | |
Shares issued under equity compensation plans | 23.8 | 0 | 0 | 17.4 | 0 | 0 | 6.4 | 0 | |
Stock-based compensation | 17.7 | 0 | 0 | 17.7 | 0 | 0 | 0 | 0 | |
Stockholders' equity, end of period at Aug. 31, 2019 | 11,691 | 1.9 | 0.3 | 1,452.1 | 13,221.4 | (476.6) | (2,821.6) | 313.5 | |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||
Repurchase of shares | $ (50) | $ 0 | $ 0 | $ 0 | $ 0 | $ 0 | $ (50) | $ 0 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows (Unaudited) - USD ($) $ in Millions | 6 Months Ended | |
Aug. 31, 2019 | Aug. 31, 2018 | |
CASH FLOWS FROM OPERATING ACTIVITIES | ||
Net income (loss) | $ (754.1) | $ 1,897.6 |
Adjustments to reconcile net income (loss) to net cash provided by operating activities: | ||
Unrealized net (gain) loss on securities measured at fair value | 1,666.6 | (950.4) |
Equity in (earnings) losses of equity method investees and related activities, net of distributed (earnings) losses | 580.3 | 2.1 |
Depreciation | 169.1 | 168.8 |
Loss on inventory and related contracts | 61 | 0 |
(Gain) loss on sale of business and assets held for sale | 36 | (6.2) |
Stock-based compensation | 33.6 | 35.9 |
Impairment and amortization of intangible assets | 13.9 | 3 |
Amortization of debt issuance costs and loss on extinguishment of debt | 9.7 | 8.9 |
Net (gain) loss on sale of unconsolidated investment | 0.1 | (99.8) |
Deferred tax provision (benefit) | (452.7) | 202.3 |
Change in operating assets and liabilities, net of effects from purchases of businesses: | ||
Accounts receivable | (106.2) | (173.8) |
Inventories | 92.7 | 123.8 |
Prepaid expenses and other current assets | 32.2 | (49) |
Accounts payable | 3.9 | 111 |
Deferred revenue | 34 | 35.6 |
Other accrued expenses and liabilities | (61) | 15.6 |
Other | 60.3 | 13.1 |
Total adjustments | 2,173.5 | (559.1) |
Net cash provided by (used in) operating activities | 1,419.4 | 1,338.5 |
CASH FLOWS FROM INVESTING ACTIVITIES | ||
Purchases of property, plant, and equipment | (355.2) | (370.6) |
Purchases of businesses, net of cash acquired | (36.2) | (20.2) |
Investments in equity method investees and securities | (33) | (152.1) |
Proceeds from sale of unconsolidated investment | 0 | 110.2 |
Proceeds from sales of assets | 0 | 44.7 |
Other investing activities | (1.3) | (0.8) |
Net cash provided by (used in) investing activities | (425.7) | (388.8) |
CASH FLOWS FROM FINANCING ACTIVITIES | ||
Principal payments of long-term debt | (1,331.5) | (23.5) |
Net proceeds from (repayments of) short-term borrowings | (640.5) | (32.4) |
Dividends paid | (285) | (279.1) |
Purchases of treasury stock | (50) | (504.3) |
Payments of minimum tax withholdings on stock-based payment awards | (14.2) | (13.5) |
Payments of debt issuance costs | (8) | (13.6) |
Proceeds from issuance of long-term debt | 1,291.3 | 12 |
Proceeds from shares issued under equity compensation plans | 32.9 | 21.5 |
Net cash provided by (used in) financing activities | (1,005) | (832.9) |
Effect of exchange rate changes on cash and cash equivalents | (1) | (1) |
Net increase (decrease) in cash and cash equivalents | (12.3) | 115.8 |
Cash and cash equivalents, beginning of period | 93.6 | 90.3 |
Cash and cash equivalents, end of period | 81.3 | 206.1 |
Supplemental disclosures of noncash investing and financing activities | ||
Additions to property, plant, and equipment | 74.4 | 147.2 |
Conversion of long-term debt to noncontrolling equity interest | $ 0 | $ 248.4 |
Basis of Presentation
Basis of Presentation | 6 Months Ended |
Aug. 31, 2019 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
BASIS OF PRESENTATION | BASIS OF PRESENTATION Unless the context otherwise requires, the terms “Company,” “CBI,” “we,” “our,” or “us” refer to Constellation Brands, Inc. and its subsidiaries. We have prepared the consolidated financial statements included herein, without audit, pursuant to the rules and regulations of the Securities and Exchange Commission applicable to quarterly reporting on Form 10-Q and reflect, in our opinion, all adjustments necessary to present fairly our financial information. All such adjustments are of a normal recurring nature. Certain information and footnote disclosures normally included in financial statements, prepared in accordance with generally accepted accounting principles, have been condensed or omitted as permitted by such rules and regulations. These consolidated financial statements and related notes should be read in conjunction with the consolidated financial statements and related notes included in our Annual Report on Form 10-K for the fiscal year ended February 28, 2019 (the “2019 Annual Report”), and include the recently adopted accounting guidance described in Note 2 and Note 14 herein. Results of operations for interim periods are not necessarily indicative of annual results. |
Accounting Guidance
Accounting Guidance | 6 Months Ended |
Aug. 31, 2019 | |
New Accounting Pronouncements and Changes in Accounting Principles [Abstract] | |
ACCOUNTING GUIDANCE | ACCOUNTING GUIDANCE Recently adopted accounting guidance In February 2016, the FASB issued guidance for the accounting for leases. Under this guidance, a lessee recognizes assets and liabilities on its balance sheet for most leases. Lease expense continues to be consistent with previous guidance. Additionally, this guidance requires enhanced disclosures regarding the amount, timing, and uncertainty of cash flows arising from leasing arrangements. We adopted the guidance on March 1, 2019, using the modified retrospective approach, accordingly, prior period balances and disclosures have not been restated. We elected the package of transition practical expedients for expired or existing contracts, which retains prior conclusions reached on lease identification, classification, and initial direct costs incurred. We finalized the implementation of changes to our accounting policies, systems and controls, including a new leasing software to capture the required data for accounting and disclosure. The adoption of this guidance resulted in the recognition of operating lease right-of-use assets of $585.4 million and operating lease liabilities of $619.7 million as of March 1, 2019, and did not have a material impact on our results of operations or liquidity. For additional information on leases, refer to Note 14 . |
Inventories
Inventories | 6 Months Ended |
Aug. 31, 2019 | |
Inventory Disclosure [Abstract] | |
INVENTORIES | INVENTORIES Inventories are stated at the lower of cost (primarily computed in accordance with the first-in, first-out method) or net realizable value. Elements of cost include materials, labor, and overhead and consist of the following: August 31, 2019 (1) February 28, (in millions) Raw materials and supplies $ 147.0 $ 182.6 In-process inventories 792.2 1,480.5 Finished case goods 372.2 467.3 $ 1,311.4 $ 2,130.4 (1) The inventory balance at August 31, 2019 , excludes amounts reclassified to assets held for sale (see Note 4 ). Related party transactions and arrangements We have an equally-owned glass production plant joint venture with Owens-Illinois. We have entered into various contractual arrangements with affiliates of Owens-Illinois primarily for the purchase of glass bottles used largely in our imported and craft beer portfolios. Amounts purchased under these arrangements were $126.4 million and $123.7 million for the six months ended August 31, 2019 , and August 31, 2018 , respectively, and $37.9 million and $54.7 million for the three months ended August 31, 2019 , and August 31, 2018 , respectively. |
Wine and Spirits Transformation
Wine and Spirits Transformation | 6 Months Ended |
Aug. 31, 2019 | |
Text Block [Abstract] | |
WINE AND SPIRITS TRANSFORMATION | WINE AND SPIRITS TRANSFORMATION Wine and Spirits Transaction In April 2019, we entered into a definitive agreement to sell a portion of our wine and spirits business, including approximately 30 lower-margin, lower-growth wine and spirits brands, wineries, vineyards, offices, and facilities, for approximately $1.7 billion , subject to certain adjustments (the “Wine and Spirits Transaction”). The Wine and Spirits Transaction is subject to the satisfaction of certain closing conditions, including receipt of required regulatory approval, and is expected to close by the end of Fiscal 2020. We expect to use the net cash proceeds from the Wine and Spirits Transaction primarily to reduce outstanding borrowings. Subsequent event We now believe it is likely that a portion of the Wine and Spirits Transaction purchase price may be revised to take the form of contingent consideration, receivable based on future brand performance. We record contingent consideration when it is determined to be realizable. Therefore, we now expect to recognize an additional loss of approximately $300 million on the write-down of assets held for sale during the three months ended November 30, 2019. Black Velvet Transaction In August 2019, we entered into a definitive agreement to sell Black Velvet Canadian Whisky and the brand’s associated production facility, along with a subset of Canadian whisky brands produced at that facility, for approximately $266 million , subject to certain adjustments (the “Black Velvet Transaction”). We expect to recognize a gain of approximately $70 million to $80 million upon closing. The Black Velvet Transaction is subject to the satisfaction of certain closing conditions, including receipt of required regulatory approvals, and is expected to close in the fourth quarter of calendar 2019. We expect to use the net cash proceeds from the Black Velvet Transaction primarily to reduce outstanding borrowings. Assets Held for Sale In connection with the Wine and Spirits Transaction and Black Velvet Transaction, certain Wine and Spirits segment net assets have met the held for sale criteria as of August 31, 2019 . For the six months and three months ended August 31, 2019 , a long-lived asset impairment of $27.0 million was recognized. For additional information refer to Note 6 . The carrying value of assets held for sale consists of the following: August 31, 2019 Wine and Spirits Transaction Black Velvet Transaction Total (in millions) Assets Inventories $ 593.7 $ 63.3 $ 657.0 Prepaid expenses and other 9.0 — 9.0 Assets held for sale - current 602.7 63.3 666.0 Property, plant, and equipment 175.8 18.2 194.0 Goodwill 353.2 62.6 415.8 Intangible assets 347.2 59.8 407.0 Equity method investments 1.1 — 1.1 Other assets 0.3 0.9 1.2 Assets held for sale 877.6 141.5 1,019.1 Liabilities Accounts payable 4.7 — 4.7 Other accrued expenses and liabilities 31.1 1.6 32.7 Deferred income taxes and other liabilities 0.1 2.1 2.2 Liabilities held for sale (1) 35.9 3.7 39.6 Net assets held for sale $ 1,444.4 $ 201.1 $ 1,645.5 (1) Liabilities held for sale are included in the Consolidated Balance Sheet as of August 31, 2019 , within the respective liability line items noted above. Wine and Spirits Optimization We recognized charges in connection with our ongoing efforts to gain efficiencies and reduce our cost structure within the Wine and Spirits segment as follows: Results of Operations Location For the Six Months Ended August 31, 2019 For the Three Months Ended August 31, 2019 (in millions) Loss on inventory write-downs Cost of product sold $ 40.9 $ 13.7 Contract termination costs Cost of product sold 20.1 4.3 Employee termination costs Selling, general, and administrative expenses 12.1 0.2 Impairment of long-lived assets Selling, general, and administrative expenses 27.0 27.0 Other costs Selling, general, and administrative expenses 6.3 — $ 106.4 $ 45.2 |
Derivative Instruments
Derivative Instruments | 6 Months Ended |
Aug. 31, 2019 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
DERIVATIVE INSTRUMENTS | DERIVATIVE INSTRUMENTS Overview Our risk management and derivative accounting policies are presented in Notes 1 and 6 of our consolidated financial statements included in our 2019 Annual Report and have not changed significantly for the six months and three months ended August 31, 2019 . We have investments in certain equity securities and other rights which provide us with the option to purchase an additional ownership interest in the equity securities of Canopy (see Note 9 ). These investments are included in securities measured at fair value and are accounted for at fair value, with the net gain (loss) from the changes in fair value of these investments recognized in income (loss) from unconsolidated investments (see Note 6 ). The aggregate notional value of outstanding derivative instruments is as follows: August 31, February 28, (in millions) Derivative instruments designated as hedging instruments Foreign currency contracts $ 1,959.9 $ 1,579.3 Interest rate swap contracts $ 375.0 $ — Derivative instruments not designated as hedging instruments Foreign currency contracts $ 781.2 $ 460.3 Commodity derivative contracts $ 265.1 $ 284.7 Credit risk We are exposed to credit-related losses if the counterparties to our derivative contracts default. This credit risk is limited to the fair value of the derivative contracts. To manage this risk, we contract only with major financial institutions that have earned investment-grade credit ratings and with whom we have standard International Swaps and Derivatives Association agreements which allow for net settlement of the derivative contracts. We have also established counterparty credit guidelines that are regularly monitored. Because of these safeguards, we believe the risk of loss from counterparty default to be immaterial. In addition, our derivative instruments are not subject to credit rating contingencies or collateral requirements. As of August 31, 2019 , the estimated fair value of derivative instruments in a net liability position due to counterparties was $53.4 million . If we were required to settle the net liability position under these derivative instruments on August 31, 2019 , we would have had sufficient available liquidity on hand to satisfy this obligation. Results of period derivative activity The estimated fair value and location of our derivative instruments on our balance sheets are as follows (see Note 6 ): Assets Liabilities August 31, February 28, August 31, February 28, (in millions) Derivative instruments designated as hedging instruments Foreign currency contracts: Prepaid expenses and other $ 9.6 $ 14.1 Other accrued expenses and liabilities $ 24.0 $ 8.8 Other assets $ 11.6 $ 22.1 Deferred income taxes and other liabilities $ 18.6 $ 6.3 Interest rate swap contracts: Prepaid expenses and other $ 0.1 $ — Other accrued expenses and liabilities $ 0.8 $ — Derivative instruments not designated as hedging instruments Foreign currency contracts: Prepaid expenses and other $ 4.5 $ 2.0 Other accrued expenses and liabilities $ 11.0 $ 0.6 Commodity derivative contracts: Prepaid expenses and other $ 1.2 $ 6.1 Other accrued expenses and liabilities $ 15.6 $ 6.1 Other assets $ 0.3 $ 2.6 Deferred income taxes and other liabilities $ 10.7 $ 5.5 The principal effect of our derivative instruments designated in cash flow hedging relationships on our results of operations, as well as Other Comprehensive Income (Loss) (“OCI”), net of income tax effect, is as follows: Derivative Instruments in Designated Cash Flow Hedging Relationships Net Gain (Loss) Recognized in OCI Location of Net Gain (Loss) Reclassified from AOCI to Income (Loss) Net Gain (Loss) Reclassified from AOCI to Income (Loss) (in millions) For the Six Months Ended August 31, 2019 Foreign currency contracts $ (35.6 ) Sales $ — Cost of product sold 7.8 Interest rate swap contracts (0.6 ) Interest expense — $ (36.2 ) $ 7.8 For the Six Months Ended August 31, 2018 Foreign currency contracts $ (7.0 ) Sales $ 0.1 Cost of product sold 4.7 $ (7.0 ) $ 4.8 Derivative Instruments in Designated Cash Flow Hedging Relationships Net Gain (Loss) Recognized in OCI Location of Net Gain (Loss) Reclassified from AOCI to Income (Loss) Net Gain (Loss) Reclassified from AOCI to Income (Loss) (in millions) For the Three Months Ended August 31, 2019 Foreign currency contracts $ (33.2 ) Sales $ — Cost of product sold 4.2 Interest rate swap contracts (0.6 ) Interest expense — $ (33.8 ) $ 4.2 For the Three Months Ended August 31, 2018 Foreign currency contracts $ 37.9 Sales $ — Cost of product sold 0.6 $ 37.9 $ 0.6 We expect $6.8 million of net losses, net of income tax effect, to be reclassified from accumulated other comprehensive income (loss) (“AOCI”) to our results of operations within the next 12 months. The effect of our undesignated derivative instruments on our results of operations is as follows: Derivative Instruments Not Designated as Hedging Instruments Location of Net Gain (Loss) Recognized in Income (Loss) Net Gain (Loss) Recognized in Income (Loss) (in millions) For the Six Months Ended August 31, 2019 Commodity derivative contracts Cost of product sold $ (26.8 ) Foreign currency contracts Selling, general, and administrative expenses (8.9 ) $ (35.7 ) For the Six Months Ended August 31, 2018 Commodity derivative contracts Cost of product sold $ 9.6 Foreign currency contracts Selling, general, and administrative expenses (28.1 ) Interest rate swap contracts Interest expense 2.7 $ (15.8 ) For the Three Months Ended August 31, 2019 Commodity derivative contracts Cost of product sold $ (10.9 ) Foreign currency contracts Selling, general and administrative expenses (5.1 ) $ (16.0 ) For the Three Months Ended August 31, 2018 Commodity derivative contracts Cost of product sold $ (5.8 ) Foreign currency contracts Selling, general and administrative expenses (26.2 ) Interest rate swap contracts Interest expense 2.7 $ (29.3 ) |
Fair Value of Financial Instrum
Fair Value of Financial Instruments | 6 Months Ended |
Aug. 31, 2019 | |
Fair Value Disclosures [Abstract] | |
FAIR VALUE OF FINANCIAL INSTRUMENTS | FAIR VALUE OF FINANCIAL INSTRUMENTS Authoritative guidance establishes a framework for measuring fair value, including a hierarchy for inputs used in measuring fair value that maximizes the use of observable inputs and minimizes the use of unobservable inputs by requiring that the most observable inputs be used when available. The hierarchy includes three levels: • Level 1 inputs are quoted prices in active markets for identical assets or liabilities; • Level 2 inputs include data points that are observable such as quoted prices for similar assets or liabilities in active markets, quoted prices for identical assets or similar assets or liabilities in markets that are not active, and inputs (other than quoted prices) such as volatility, interest rates, and yield curves that are observable for the asset and liability, either directly or indirectly; and • Level 3 inputs are unobservable data points for the asset or liability, and include situations where there is little, if any, market activity for the asset or liability. Fair value methodology The following methods and assumptions are used to estimate the fair value for each class of our financial instruments: Foreign currency and commodity derivative contracts The fair value is estimated using market-based inputs, obtained from independent pricing services, entered into valuation models. These valuation models require various inputs, including contractual terms, market foreign exchange prices, market commodity prices, interest-rate yield curves, and currency volatilities, as applicable (Level 2 fair value measurement). Interest rate swap contracts The fair value is estimated based on quoted market prices from respective counterparties. Quotes are corroborated by using discounted cash flow calculations based upon forward interest-rate yield curves, which are obtained from independent pricing services (Level 2 fair value measurement). Canopy investments Equity securities, Warrants – The terms of the November 2018 Canopy Warrants were modified in June 2019 and now consist of three tranches of warrants: New Tranche A Warrants, New Tranche B Warrants, and New Tranche C Warrants. The exercise price for the New Tranche C Warrants is based on the volume-weighted average of the closing market price of Canopy’s common shares on the TSX for the five trading days immediately preceding the exercise date (“VWAP Exercise Price”), accordingly, no fair value is assigned. For additional information on the November 2018 Canopy Warrants and the related modification, refer to Note 9 . The inputs used to estimate the fair value of the Canopy warrants (all as defined in Note 9 ) are as follows: August 31, 2019 (1) February 28, 2019 New Tranche A Warrants (2) New Tranche B Warrants (3) November 2017 Canopy Warrants (2) November (2) November 2017 Canopy Warrants (2) Exercise price (4) C$ 50.40 C$ 76.68 C$ 12.98 C$ 50.40 C$ 12.98 Valuation date stock price (5) C$ 31.46 C$ 31.46 C$ 31.46 C$ 62.38 C$ 62.38 Expected life (6) 4.2 years 7.2 years 0.7 years 2.7 years 1.2 years Expected volatility (7) 65.0 % 65.0 % 69.6 % 79.3 % 87.8 % Risk-free interest rate (8) 1.2 % 1.2 % 1.6 % 1.8 % 1.8 % Expected dividend yield (9) 0.0 % 0.0 % 0.0 % 0.0 % 0.0 % (1) New Tranche C Warrants are not included in the table as there is no fair value assigned. (2) The fair value is estimated using the Black-Scholes option-pricing model (Level 2 fair value measurement). (3) The fair value is estimated using Monte Carlo simulations (Level 2 fair value measurement). (4) Based on the exercise price from the applicable underlying agreements. (5) Based on the closing market price for Canopy common stock on the Toronto Stock Exchange (“TSX”) as of the applicable date. (6) Based on the expiration date of the warrants. (7) Based on consideration of historical and/or implied volatility levels of the underlying equity security and limited consideration of historical peer group volatility levels. (8) Based on the implied yield currently available on Canadian Treasury zero coupon issues with a remaining term equal to the expected life. (9) Based on historical dividend levels. Debt securities, Convertible – In June 2018, we acquired convertible debt securities issued by Canopy for C$200.0 million , or $150.5 million (the “Canopy Debt Securities”). We have elected the fair value option to account for the Canopy Debt Securities, which at that time, provided the greatest level of consistency with the accounting treatment for the November 2017 Canopy Warrants. Interest income on the Canopy Debt Securities is calculated using the effective interest method and is recognized separately from the changes in fair value in interest expense. The Canopy Debt Securities have a contractual maturity of five years from the date of issuance but may be converted prior to maturity by either party upon the occurrence of certain events. At settlement, the Canopy Debt Securities can be settled at the option of the issuer, in cash, equity shares of the issuer, or a combination thereof. The fair value is estimated using a binomial lattice option-pricing model (Level 2 fair value measurement), which includes an estimate of the credit spread based on the implied spread as of the issuance date of the notes. The inputs used to estimate the fair value of the Canopy Debt Securities are as follows: August 31, February 28, Conversion price (1) C$ 48.17 C$ 48.17 Valuation date stock price (2) C$ 31.46 C$ 62.38 Remaining term (3) 3.9 years 4.4 years Expected volatility (4) 49.0 % 45.9 % Risk-free interest rate (5) 1.3 % 1.8 % Expected dividend yield (6) 0.0 % 0.0 % (1) Based on the rate which the Canopy Debt Securities may be converted into equity shares, or the equivalent amount of cash, at the option of the issuer. (2) Based on the closing market price for Canopy common stock on the TSX as of the applicable date. (3) Based on the contractual maturity date of the notes. (4) Based on historical volatility levels of the underlying equity security reduced to account for certain risks not incorporated into the option-pricing model. (5) Based on the implied yield currently available on Canadian Treasury zero coupon issues with a term equal to the remaining contractual term of the debt securities. (6) Based on historical dividend levels. Short-term borrowings The revolving credit facility under our senior credit facility is a variable interest rate bearing note which includes a fixed margin which is adjustable based upon our debt rating (as defined in our senior credit facility). Its fair value is estimated by discounting cash flows using LIBOR plus a margin reflecting current market conditions obtained from participating member financial institutions (Level 2 fair value measurement). The remaining instruments, including our commercial paper, are variable interest rate bearing notes for which the carrying value approximates the fair value. Long-term debt The term loans under our Term Credit Agreement and 2019 Term Credit Agreement (both as defined in Note 11 ) are variable interest rate bearing notes which include a fixed margin which is adjustable based upon our debt rating. The senior floating rate notes are variable interest rate bearing notes which include a fixed margin. The fair value of the term loans and the senior floating rate notes are estimated by discounting cash flows using LIBOR plus a margin reflecting current market conditions obtained from participating member financial institutions (Level 2 fair value measurement). The fair value of the remaining long-term debt, which is primarily fixed interest rate, is estimated by discounting cash flows using interest rates currently available for debt with similar terms and maturities (Level 2 fair value measurement). The carrying amounts of certain of our financial instruments, including cash and cash equivalents, accounts receivable, accounts payable, and short-term borrowings, approximate fair value as of August 31, 2019 , and February 28, 2019 , due to the relatively short maturity of these instruments. As of August 31, 2019 , the carrying amount of long-term debt, including the current portion, was $12,795.9 million , compared with an estimated fair value of $13,677.2 million . As of February 28, 2019 , the carrying amount of long-term debt, including the current portion, was $12,825.0 million , compared with an estimated fair value of $12,768.5 million . Recurring basis measurements The following table presents our financial assets and liabilities measured at estimated fair value on a recurring basis: Fair Value Measurements Using Quoted Prices in Active Markets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Total (in millions) August 31, 2019 Assets: Foreign currency contracts $ — $ 25.7 $ — $ 25.7 Commodity derivative contracts $ — $ 1.5 $ — $ 1.5 Interest rate swap contracts $ — $ 0.1 $ — $ 0.1 Equity securities (1) $ — $ 1,438.0 $ — $ 1,438.0 Canopy Debt Securities (1) $ — $ 134.2 $ — $ 134.2 Liabilities: Foreign currency contracts $ — $ 53.6 $ — $ 53.6 Commodity derivative contracts $ — $ 26.3 $ — $ 26.3 Interest rate swap contracts $ — $ 0.8 $ — $ 0.8 February 28, 2019 Assets: Foreign currency contracts $ — $ 38.2 $ — $ 38.2 Commodity derivative contracts $ — $ 8.7 $ — $ 8.7 Equity securities (1) $ — $ 3,023.2 $ — $ 3,023.2 Canopy Debt Securities (1) $ — $ 211.5 $ — $ 211.5 Liabilities: Foreign currency contracts $ — $ 15.7 $ — $ 15.7 Commodity derivative contracts $ — $ 11.6 $ — $ 11.6 (1) Unrealized net gain (loss) from the changes in fair value of our securities measured at fair value recognized in income (loss) from unconsolidated investments are as follows: For the Six Months Ended For the Three Months Ended August 31, 2019 August 31, 2018 August 31, 2019 August 31, 2018 (in millions) November 2017 Canopy Investment (i) $ — $ 461.0 $ — $ 328.1 November 2017 Canopy Warrants (450.8 ) 435.9 (316.7 ) 310.5 November 2018 Canopy Warrants (ii) (1,134.4 ) — (473.6 ) — Canopy Debt Securities (81.4 ) 53.5 (48.8 ) 53.5 $ (1,666.6 ) $ 950.4 $ (839.1 ) $ 692.1 (i) Accounted for at fair value from the date of investment in November 2017 through October 31, 2018. Accounted for under the equity method from November 1, 2018. For additional information on the November 2017 Canopy Investment, refer to Note 9. (ii) The terms of the November 2018 Canopy Warrants were modified in June 2019. For additional information on the November 2018 Canopy Warrants and the related modification, refer to Note 9. The amounts are net of a $1,176.0 million unrealized gain resulting from the June 2019 Warrant Modification for the six months and three months ended August 31, 2019. Nonrecurring basis measurements The following table presents our assets and liabilities measured at estimated fair value on a nonrecurring basis for which an impairment assessment was performed for the period presented: Fair Value Measurements Using Quoted Prices in Active Markets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Total Losses (in millions) For the Six Months Ended August 31, 2019 Long-lived assets held for sale $ — $ — $ 1,444.4 $ 27.0 Trademarks $ — $ — $ 17.0 $ 11.0 Total $ — $ — $ 1,461.4 $ 38.0 Long-lived assets held for sale For the six months and three months ended August 31, 2019 , in connection with the Wine and Spirits Transaction (as defined in Note 4 ), long-lived assets held for sale with a carrying value of $1,471.4 million were written down to their estimated fair value of $1,444.4 million , less cost to sell, resulting in a loss of $27.0 million . These losses are included in selling, general, and administrative expenses. These assets consisted primarily of goodwill, intangible assets, and certain winery and vineyard assets which had satisfied the conditions necessary to be classified as held for sale. As such, these assets were written down to a value based on our estimate of fair value less cost to sell. Our estimate of fair value was determined based on the expected proceeds from the Wine and Spirits Transaction as of August 31, 2019 . Trademarks For the six months and three months ended August 31, 2019 , certain continuing negative trends within our Beer segment’s Ballast Point craft beer portfolio, including increased rate of revenue decline and increased competition, indicated that it was more likely than not that the fair value of our indefinite-lived intangible asset associated with the Ballast Point craft beer trademark might be below its carrying value. Accordingly, we performed a quantitative assessment for impairment. As a result of this assessment, the Ballast Point craft beer trademark asset with a carrying value of $28.0 million was written down to its estimated fair value of $17.0 million , resulting in an impairment of $11.0 million . This impairment is included in selling, general, and administrative expenses. |
Goodwill
Goodwill | 6 Months Ended |
Aug. 31, 2019 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
GOODWILL | GOODWILL The changes in the carrying amount of goodwill are as follows: Beer Wine and Spirits Consolidated (in millions) Balance, February 28, 2018 $ 5,157.6 $ 2,925.5 $ 8,083.1 Purchase accounting allocations (1) 22.3 2.7 25.0 Foreign currency translation adjustments (12.0 ) (7.3 ) (19.3 ) Balance, February 28, 2019 5,167.9 2,920.9 8,088.8 Purchase accounting allocations (2) — 58.8 58.8 Foreign currency translation adjustments (26.0 ) (9.1 ) (35.1 ) Reclassified to assets held for sale (3) — (415.8 ) (415.8 ) Balance, August 31, 2019 $ 5,141.9 $ 2,554.8 $ 7,696.7 (1) Purchase accounting allocations associated primarily with the acquisition of F our Corners (Beer). See defined acquisition term below. (2) Preliminary purchase accounting allocations associated primarily with the acquisition of Nelson’s Green Brier (Wine and Spirits). See defined acquisition term below. (3) In connection with the Wine and Spirits Transaction and the Black Velvet Transaction, goodwill associated with the businesses being sold were reclassified to assets held for sale based on the relative fair values of the portion of the business being sold and the remaining wine and spirits portfolio. The relative fair values were determined using the income approach based on assumptions, including projected revenue growth rates, terminal growth rate, and discount rate and other projected financial information. Acquisitions Nelson’s Green Brier In May 2019, we increased our ownership interest in Nelson’s Green Brier Distillery, LLC (“Nelson’s Green Brier”) to 75% , resulting in consolidation of the business and recognition of a noncontrolling interest. This acquisition included a portfolio of award-winning, Tennessee-based craft bourbon and whiskey products. The preliminary fair value of the business combination was allocated primarily to goodwill, trademarks, inventory, and property, plant, and equipment. The results of operations of Nelson’s Green Brier are reported in the Wine and Spirits segment and have been included in our consolidated results of operations from the date of acquisition. We recognized a gain of $11.8 million for the six months ended August 31, 2019 , related to the remeasurement of our previously held 20% equity interest in Nelson’s Green Brier to the acquisition-date fair value. This gain is included in selling, general, and administrative expenses within our consolidated results of operations. Four Corners In July 2018, we acquired Four Corners Brewing Company LLC, which included a portfolio of high-quality, dynamic, and bicultural, Texas-based craft beers (“Four Corners”). The purchase price was primarily allocated to goodwill, property, plant, and equipment, and trademarks, plus an earn-out over five years based on the performance of the brands. The results of operations of Four Corners are reported in the Beer segment and have been included in our consolidated results of operations from the date of acquisition. |
Intangible Assets
Intangible Assets | 6 Months Ended |
Aug. 31, 2019 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
INTANGIBLE ASSETS | INTANGIBLE ASSETS The major components of intangible assets are as follows: August 31, 2019 February 28, 2019 Gross Carrying Amount Net Carrying Amount Gross Carrying Amount Net Carrying Amount (in millions) Amortizable intangible assets Customer relationships $ 89.9 $ 36.4 $ 89.9 $ 39.1 Other 20.4 0.6 20.5 0.9 Total $ 110.3 37.0 $ 110.4 40.0 Nonamortizable intangible assets Trademarks (1) 2,750.0 3,158.1 Total intangible assets $ 2,787.0 $ 3,198.1 (1) The intangible assets balance at August 31, 2019 , excludes trademarks reclassified to assets held for sale (see Note 4 ). We did not incur costs to renew or extend the term of acquired intangible assets for the six months and three months ended August 31, 2019 , and August 31, 2018 . Net carrying amount represents the gross carrying value net of accumulated amortization. |
Equity Method Invesments
Equity Method Invesments | 6 Months Ended |
Aug. 31, 2019 | |
Equity Method Investments and Joint Ventures [Abstract] | |
EQUITY METHOD INVESTMENTS | EQUITY METHOD INVESTMENTS Our equity method investments are as follows: August 31, 2019 February 28, 2019 Carrying Value Ownership Percentage Carrying Value Ownership Percentage (in millions) Canopy Equity Method Investment $ 2,846.0 35.6 % $ 3,332.1 36.0 % Other equity method investments 157.8 20%-50% 133.5 20%-50% $ 3,003.8 $ 3,465.6 In November 2017, we acquired 18.9 million common shares, which represented a 9.9% ownership interest in Ontario, Canada-based Canopy Growth Corporation (the “November 2017 Canopy Investment”), a public company and leading provider of medicinal and recreational cannabis products (“Canopy”), plus warrants which give us the option to purchase an additional 18.9 million common shares of Canopy (the “November 2017 Canopy Warrants”) for C$245.0 million , or $191.3 million . The November 2017 Canopy Warrants were issued with an exercise price of C$12.98 per warrant share and are exercisable as of August 31, 2019 . These warrants expire in May 2020 . The November 2017 Canopy Investment was accounted for at fair value from the date of investment through October 31, 2018. From November 1, 2018, the November 2017 Canopy Investment has been accounted for under the equity method (see “Canopy Equity Method Investment” below). The November 2017 Canopy Warrants have been accounted for at fair value from the date of investment. On November 1, 2018, we increased our ownership interest in Canopy by acquiring an additional 104.5 million common shares (the “November 2018 Canopy Investment”) (see Canopy Equity Method Investment below), plus warrants which give us the option to purchase an additional 139.7 million common shares of Canopy (the “November 2018 Canopy Warrants”, and together with the November 2018 Canopy Investment, the “November 2018 Canopy Transaction”) for C$5,078.7 million , or $3,869.9 million . On November 1, 2018, our ownership interest in Canopy increased to 36.6% which allows us to exercise significant influence, but not control, over Canopy. Therefore, we account for the November 2017 Canopy Investment and the November 2018 Canopy Investment, each of which represents an investment in common shares of Canopy, collectively, under the equity method (the “Canopy Equity Method Investment”). We recognize equity in earnings (losses) and related activities for this investment on a two-month lag. Accordingly, we recognized equity in earnings (losses) and related activities of $(590.4) million for the period January 1, 2019, through June 30, 2019, in our consolidated financial statements for the six months ended August 31, 2019 , and $(484.4) million for the period April 1, 2019, through June 30, 2019, in our consolidated financial statements for the three months ended August 31, 2019 . Equity in earnings (losses) from the Canopy Equity Method Investment and related activities include, among other items, our share of the additional loss resulting from the June 2019 Warrant Modification (as defined below) of $(409.0) million (the “June 2019 Warrant Modification Loss”), the amortization of the fair value adjustments associated with the definite-lived intangible assets over their estimated useful lives, the flow through of inventory step-up, and unrealized gains (losses) associated with changes in our Canopy ownership percentage resulting from periodic equity issuances made by Canopy. The November 2018 Canopy Warrants originally consisted of 88.5 million warrants (the “Tranche A Warrants”) and 51.2 million warrants (the “Tranche B Warrants”). The Tranche A Warrants were immediately exercisable at an exercise price of C$50.40 per warrant share. The Tranche B Warrants were exercisable upon the exercise, in full, of the Tranche A Warrants and at an exercise price based on the volume-weighted average of the closing market price of Canopy’s common shares on the TSX for the five trading days immediately preceding the exercise date. The November 2018 Canopy Warrants originally expired in November 2021 and have been accounted for at fair value from the date of investment. In June 2019, the Canopy shareholders approved the modification of the terms of the November 2018 Canopy Warrants and certain other rights (the “June 2019 Warrant Modification”), and the other required approvals necessary for the modifications to be effective were granted. These changes are the result of Canopy’s intention to acquire Acreage Holdings, Inc. (“Acreage”) upon U.S. Federal cannabis legalization, subject to certain conditions (the “Acreage Transaction”). As a result of the modifications, we continue to have the option to purchase an additional 139.7 million common shares of Canopy upon exercise of the warrants originally received in November 2018; however, this option now consists of three tranches of warrants, including 88.5 million warrants (the “New Tranche A Warrants”), 38.4 million warrants (the “New Tranche B Warrants”), and 12.8 million warrants (the “New Tranche C Warrants”, and collectively with the New Tranche A Warrants and the New Tranche B Warrants, the “New November 2018 Canopy Warrants”). The New Tranche A Warrants have an exercise price of C$50.40 per warrant share and are currently exercisable, but now expire November 1, 2023. The New Tranche B Warrants now have an exercise price of C$76.68 per warrant share and the New Tranche C Warrants have a VWAP Exercise Price. The New Tranche B Warrants and the New Tranche C Warrants now have an expiration date of November 1, 2026. The other rights obtained in June 2019 in connection with the Acreage Transaction include a share repurchase credit and the ability to purchase Canopy common shares on the open market or in private agreement transactions. If for any reason Canopy has not purchased the lesser of 27,378,866 Canopy common shares or C$1,583.0 million worth of Canopy common shares for cancellation by the end of the two-year period beginning upon full exercise of the New Tranche A Warrants, we will be credited an amount that will reduce the aggregate exercise price otherwise payable upon each exercise of the New Tranche B Warrants and New Tranche C Warrants. The credit will be an amount equal to the difference between C$1,583.0 million and the actual price paid by Canopy in purchasing its common shares for cancellation. If we choose to purchase Canopy common shares on the open market or in private agreement with existing holders, the number of New Tranche B Warrants or New Tranche C Warrants shall be decreased by one for each Canopy common share acquired, up to an aggregate maximum reduction of 20 million warrants. The likelihood of receiving the share repurchase credit if we were to fully exercise the New Tranche A Warrants is remote, therefore, no fair value has been assigned. The inputs used to estimate the fair value of the New November 2018 Canopy Warrants as of the June 27, 2019 modification date, are as follows: New Tranche A Warrants (1) New Tranche B Warrants (1) Exercise price C$ 50.40 C$ 76.68 Valuation date stock price C$ 53.36 C$ 53.36 Expected life 4.3 years 7.3 years Expected volatility 66.7 % 66.7 % Risk-free interest rate 1.4 % 1.4 % Expected dividend yield 0.0 % 0.0 % (1) Refer to Note 6 for input descriptions. Accordingly, we have recognized a $1,176.0 million unrealized gain from unconsolidated investments in the second quarter of fiscal 2020 from the June 2019 Warrant Modification. Approximately $322.5 million of the unrealized gain was associated with the New Tranche A Warrants and $853.5 million was associated with the New Tranche B Warrants. No value was associated with the New Tranche C Warrants as they have a VWAP Exercise Price. As the expiration dates of the New Tranche A Warrants and New Tranche B Warrants were extended, we now utilize a blend of Canopy’s historical volatility, implied volatility, and limited consideration of historical peer group volatility in our valuations to supplement the limited trading history. Canopy has various convertible equity securities outstanding, including primarily equity awards granted to its employees, and options and warrants issued to various third parties, including our November 2017 Canopy Warrants and New November 2018 Canopy Warrants. As of August 31, 2019 , the conversion of Canopy equity securities held by its employees and/or held by other third parties would not have a significant effect on our share of Canopy’s reported earnings or losses. Additionally, under an amended and restated investor rights agreement, we have the option to purchase additional common shares of Canopy at the then-current price of the underlying equity security to allow us to maintain our relative ownership interest. If Canopy exercises its right to acquire the shares of Acreage and we were to exercise all of our outstanding November 2017 Canopy Warrants and the New November 2018 Canopy Warrants, our ownership interest in Canopy would not be expected to be greater than 50 percent. As of August 31, 2019 , the exercise of all Canopy warrants held by us would have required a cash outflow of approximately $6.1 billion based on the terms of the November 2017 Canopy Warrants and the New November 2018 Canopy Warrants. Additionally, as of August 31, 2019 , the fair value of the Canopy Equity Method Investment was $2,916.0 million based on the closing price of the underlying equity security as of that date. The following table presents summarized financial information for Canopy presented in accordance with U.S. GAAP. We recognize our equity in earnings (losses) for Canopy on a two-month lag. Accordingly, we recognized our share of Canopy’s fourth quarter fiscal 2019 and first quarter fiscal 2020 earnings (losses) for the period January through June 2019 in our six months ended August 31, 2019 . We recognized our share of Canopy’s first quarter fiscal 2020 earnings (losses) for the period April through June 2019, in our three months ended August 31, 2019 results. The amounts shown represent 100% of Canopy’s results of operations for the respective periods. However, they exclude the impact the June 2019 Warrant Modification Loss because it was recorded within equity. For the Six Months Ended August 31, For the Three Months Ended August 31, 2019 2018 2019 2018 (in millions) Net sales $ 138.4 NA $ 67.7 NA Gross profit $ 21.1 NA $ 9.8 NA Net gain (loss) $ (418.6 ) NA $ (149.7 ) NA Net gain (loss) attributable to Canopy $ (430.4 ) NA $ (146.3 ) NA NA = Not Applicable |
Other Assets
Other Assets | 6 Months Ended |
Aug. 31, 2019 | |
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] | |
OTHER ASSETS | OTHER ASSETS The major components of other assets are as follows: August 31, February 28, (in millions) Operating lease right-of-use asset $ 552.8 $ — Other 97.6 109.7 $ 650.4 $ 109.7 |
Borrowings
Borrowings | 6 Months Ended |
Aug. 31, 2019 | |
Debt Disclosure [Abstract] | |
BORROWINGS | BORROWINGS Borrowings consist of the following: August 31, 2019 February 28, Current Long-term Total Total (in millions) Short-term borrowings Senior credit facility, Revolving credit loan $ — $ 59.0 Commercial paper 150.9 732.5 $ 150.9 $ 791.5 Long-term debt Senior credit facility, Term loan $ — $ — $ — $ 492.8 Term loan credit facilities 24.6 1,528.3 1,552.9 1,486.4 Senior notes 599.6 10,618.2 11,217.8 10,816.9 Other 11.9 13.3 25.2 28.9 $ 636.1 $ 12,159.8 $ 12,795.9 $ 12,825.0 Senior credit facility The Company, CB International Finance S.à r.l., a wholly-owned subsidiary of ours (“CB International”), certain of the Company’s subsidiaries as guarantors, Bank of America, N.A., as administrative agent (the “Administrative Agent”), and certain other lenders are parties to a credit agreement, as amended and restated (the “2018 Credit Agreement”). The 2018 Credit Agreement provides for aggregate credit facilities of $2.0 billion . Term Credit Agreement The Company, the Administrative Agent, and certain other lenders are parties to a term loan credit agreement (the “Term Credit Agreement”). The Term Credit Agreement provides for aggregate credit facilities of $1.5 billion , consisting of a $500.0 million three-year term loan facility (the “Three-Year Term Facility”) and a $1.0 billion five-year term loan facility (the “Five-Year Term Facility”). 2019 Term Credit Agreement In June 2019, the Company and Bank of America, N.A., as Administrative Agent and lender (the “Lender”) entered into a term loan credit agreement (the “2019 Term Credit Agreement”). The 2019 Term Credit Agreement provides for the creation of a $491.3 million five-year term loan facility (the “2019 Five-Year Term Facility”). The 2019 Five-Year Term Facility will be repaid in quarterly payments of principal equal to 1.25% of the original aggregate principal amount of the 2019 Five-Year Term Facility, with the balance due and payable at maturity. The proceeds from borrowings under the 2019 Term Credit Agreement were used to repay in full the U.S. Term A-1 Facility under the 2018 Credit Agreement. The obligations under the 2019 Term Credit Agreement are guaranteed by certain subsidiaries of the Company. The guarantors under the 2019 Term Credit Agreement are the same subsidiary guarantors as under the 2018 Credit Agreement and the Term Credit Agreement. We and our subsidiaries are subject to covenants that are contained in the 2019 Term Credit Agreement, including those restricting the incurrence of additional indebtedness (including guarantees of indebtedness), additional liens, mergers and consolidations, transactions with affiliates, and sale and leaseback transactions, in each case subject to numerous conditions, exceptions and thresholds. The financial covenants are limited to a minimum interest coverage ratio and a maximum net leverage ratio. As of August 31, 2019 , aggregate credit facilities under the 2018 Credit Agreement, the Term Credit Agreement, and the 2019 Term Credit Agreement consist of the following: Amount Maturity (in millions) 2018 Credit Agreement Revolving Credit Facility (1) (2) $ 2,000.0 Sept 14, 2023 Term Credit Agreement Three-Year Term Facility (1) (3) $ 500.0 Nov 1, 2021 Five-Year Term Facility (1) (3) $ 1,000.0 Nov 1, 2023 $ 1,500.0 2019 Term Credit Agreement 2019 Five-Year Term Facility (1) (3) $ 491.3 Jun 28, 2024 (1) Contractual interest rate varies based on our debt rating (as defined in the respective agreement) and is a function of LIBOR plus a margin, or the base rate plus a margin, or, in certain circumstances where LIBOR cannot be adequately ascertained or available, an alternative benchmark rate plus a margin. (2) We and/or CB International are the borrower under the $2,000.0 million Revolving Credit Facility. Includes a sub-facility for letters of credit of up to $200.0 million . (3) We are the borrower under the Three-Year Term Facility, the Five-Year Term Facility, and the 2019 Five-Year Term Facility. As of August 31, 2019 , information with respect to borrowings under the 2018 Credit Agreement, the Term Credit Agreement, and the 2019 Term Credit Agreement is as follows: 2018 Credit Agreement Term Credit Agreement 2019 Term Credit Agreement Revolving Credit Facility Three-Year Term Facility (1) Five-Year Term Facility (1) (2) 2019 Five-Year Term Facility (1) (in millions) Outstanding borrowings $ — $ 499.6 $ 562.0 $ 491.3 Interest rate — % 3.4 % 3.5 % 3.1 % LIBOR margin 1.13 % 1.13 % 1.25 % 0.88 % Outstanding letters of credit $ 12.2 Remaining borrowing capacity (3) $ 1,836.8 (1) Outstanding term loan facilities borrowings are net of unamortized debt issuance costs. (2) Outstanding borrowings reflect a $400.0 million partial repayment of the Five-Year Term Facility under our Term Credit Agreement. (3) Net of outstanding revolving credit facility borrowings and outstanding letters of credit under the 2018 Credit Agreement and outstanding borrowings under our commercial paper program of $151.0 million (excluding unamortized discount) (see “Commercial paper program”). Commercial paper program We have a commercial paper program which provides for the issuance of up to an aggregate principal amount of $2.0 billion of commercial paper. Our commercial paper program is backed by unused commitments under our revolving credit facility under our 2018 Credit Agreement. Accordingly, outstanding borrowings under our commercial paper program reduce the amount available under our revolving credit facility under our 2018 Credit Agreement. As of August 31, 2019 , we had $150.9 million of outstanding borrowings, net of unamortized discount, under our commercial paper program with a weighted average annual interest rate of 2.4% and a weighted average remaining term of 9 days . Interest rate swap contracts In June 2019, we entered into interest rate swap agreements, which are designated as cash flow hedges for $375.0 million of our floating LIBOR rate debt. As a result of these hedges, we have fixed our interest rates on $375.0 million of our floating LIBOR rate debt at an average rate of 1.9% (exclusive of borrowing margins) from July 1, 2019, through July 1, 2020. Senior Notes In July 2019, we issued $800.0 million aggregate principal amount of 3.15% Senior Notes due August 2029 (the “July 2019 Senior Notes”). Proceeds from this offering, net of discount and debt issuance costs, were $793.0 million . Interest on the July 2019 Senior Notes is payable semiannually on February 1 and August 1 of each year, beginning February 1, 2020. The July 2019 Senior Notes are redeemable, in whole or in part, at our option at any time prior to May 1, 2029, at a redemption price equal to 100% of the outstanding principal amount, plus accrued and unpaid interest and a make-whole payment based on the present value of the future payments at the applicable Treasury Rate plus 20 basis points. On or after May 1, 2029, we may redeem the July 2019 Senior Notes, in whole or in part, at our option at any time at a redemption price equal to 100% of the outstanding principal amount, plus accrued and unpaid interest. The July 2019 Senior Notes are senior unsecured obligations which rank equally in right of payment to all of our existing and future senior unsecured indebtedness. Certain of our U.S. subsidiaries guarantee the July 2019 Senior Notes on a senior unsecured basis. In November 2014, we issued $400.0 million aggregate principal amount of 3.875% Senior Notes due November 2019 (the “3.875% November 2014 Senior Notes”). On August 28, 2019, we repaid the 3.875% November 2014 Senior Notes with proceeds from the July 2019 Senior Notes. Debt payments As of August 31, 2019 , the required principal repayments under long-term debt obligations (excluding unamortized debt issuance costs and unamortized discounts of $68.4 million and $14.7 million , respectively) for the remaining six months of fiscal 2020 and for each of the five succeeding fiscal years and thereafter are as follows: (in millions) 2020 $ 618.4 2021 734.6 2022 1,680.6 2023 1,827.2 2024 1,637.5 2025 780.7 Thereafter 5,600.0 $ 12,879.0 |
Income Taxes
Income Taxes | 6 Months Ended |
Aug. 31, 2019 | |
Income Tax Disclosure [Abstract] | |
INCOME TAXES | INCOME TAXES Our effective tax rate for the six months ended August 31, 2019 was 33.9% of tax benefit as compared with 16.3% of tax expense for the six months ended August 31, 2018 . Our effective tax rate for the three months ended August 31, 2019 was 28.1% of tax benefit as compared with 15.7% of tax expense for the three months ended August 31, 2018 . For the six months and three months ended August 31, 2019 , our effective tax rate was higher than the federal statutory rate of 21% primarily due to the net unrealized loss from the changes in fair value of our investments in Canopy, which have resulted in an overall net loss for the six months and three months ended August 31, 2019 . Our effective tax rate benefited from the following: • a higher effective rate of tax benefit from our foreign businesses including the tax benefits recorded on the net unrealized loss from the changes in fair value of our investments in Canopy and the tax benefits recorded on the Canopy equity in earnings (losses) and related activities; • the recognition of a net income tax benefit from stock-based compensation award activity; and • for the six months ended August 31, 2019 , our effective tax rate also benefited from the reversal of valuation allowances for capital loss carryforwards in connection with the Wine and Spirits Transaction. For the six months and three months ended August 31, 2018 , our effective tax rate was lower than the federal statutory rate of 21% primarily due to: • lower effective tax rates applicable to our foreign businesses; • the recognition of a net income tax benefit from stock-based compensation award activity; and • for the six months ended August 31, 2018 , our effective tax rate also benefited from the reversal of valuation allowances in connection with the sale of our Accolade Wine Investment (see Note 19 ). Subsequent Event As a result of certain foreign tax reform that was enacted in September 2019, we are estimating a one-time benefit to our deferred tax assets of approximately $500 million to $550 million to be recognized during the three months ended November 30, 2019. |
Deferred Income Taxes and Other
Deferred Income Taxes and Other Liabilities | 6 Months Ended |
Aug. 31, 2019 | |
Other Liabilities Disclosure [Abstract] | |
DEFERRED INCOME TAXES AND OTHER LIABILITIES | DEFERRED INCOME TAXES AND OTHER LIABILITIES The major components of deferred income taxes and other liabilities are as follows: August 31, February 28, (in millions) Deferred income taxes $ 561.3 $ 1,029.7 Operating lease liability 511.9 — Unrecognized tax benefit liabilities 249.8 239.0 Long-term income tax payable 95.4 95.4 Other 90.0 106.6 $ 1,508.4 $ 1,470.7 |
Leases
Leases | 6 Months Ended |
Aug. 31, 2019 | |
Leases [Abstract] | |
LEASES | LEASES General We primarily lease certain vineyards, office and production facilities, warehouses, production equipment, and vehicles. We assess service arrangements to determine if an asset is explicitly or implicitly specified in the agreement and if we have the right to control the use of the identified asset. We have concluded that certain grape purchasing arrangements associated with the purchase of grape production yielded from a specified block of a vineyard and certain third-party logistics arrangements contain a lease. The right-of-use asset is initially measured at cost, which is primarily comprised of the initial amount of the lease liability, plus initial direct costs and lease payments at or before the lease commencement date, less any lease incentives received, and is amortized on a straight-line basis over the remaining lease term. All right-of-use assets are reviewed periodically for impairment. The lease liability is initially measured at the present value of lease payments, discounted using the interest rate implicit in the lease or, if that rate cannot be readily determined, our secured incremental borrowing rate. The incremental borrowing rates are determined using a portfolio approach based on publicly available information in connection with our unsecured borrowing rates adjusted for items including collateral, currency, and the timing in which lease payments are made. We elected to recognize expenses for leases with a term of 12 months or less on a straight-line basis over the lease term and not to recognize these short-term leases on the balance sheet. Our leases have varying terms with remaining lease terms of up to approximately 30 years . Certain of our lease arrangements provide us with the option to extend or to terminate the lease early. The right-of-use asset and lease liability are calculated including options to extend or to terminate the lease when we determine that it is reasonably certain that we will exercise those options. In making that determination, we consider various existing economic and market factors, business strategies as well as the nature, length, and terms of the agreement. Based on our evaluation using these factors, we concluded that the exercise of renewal options or early termination options would not be reasonably certain in determining the lease term at commencement for leases we currently have in place. Assumptions made at the commencement date are re-evaluated upon occurrence of certain events such as a lease modification. Certain of our contractual arrangements may contain both lease and non-lease components. Non-lease components are distinct elements of a contract that are not related to securing the use of the leased asset, such as raw materials, common area maintenance and other management costs. We elected to measure the lease liability by combining the lease and non-lease components as a single lease component for all asset classes. Certain of our leases include variable lease payments, including payments that depend on an index or rate, as well as variable payments for items such as raw materials, labor, property taxes, insurance, maintenance, and other operating expenses associated with leased assets. Certain grape purchasing arrangements include variable payments that will vary depending on certain factors, including weather, time of harvest, overall market conditions, and the agricultural practices and location of the vineyard. In addition, certain third-party logistics arrangements include variable payments that vary depending on throughput. Such variable lease payments are excluded from the calculation of the right-of-use asset and are recognized in the period in which the obligation is incurred. Balance sheet location A summary of lease right-of-use assets and liabilities are as follows: Balance Sheet Classification August 31, (in millions) Assets Operating lease Other assets $ 552.8 Finance lease Property, plant, and equipment 26.4 Total right-of-use assets $ 579.2 Liabilities Current: Operating lease Other accrued expenses and liabilities $ 76.7 Finance lease Current maturities of long-term debt 11.9 Non-Current: Operating lease Deferred income taxes and other liabilities 511.9 Finance lease Long-term debt, less current maturities 13.3 Total lease liabilities $ 613.8 Lease costs The components of total lease cost are as follows: For the Six Months Ended August 31, 2019 For the Three Months Ended August 31, 2019 (in millions) Operating lease cost $ 46.5 $ 23.1 Finance lease cost: Amortization of right-of-use assets 5.6 2.8 Interest on lease liabilities 0.3 0.1 Short-term lease cost 4.2 1.9 Variable lease cost 95.4 51.5 Total lease cost $ 152.0 $ 79.4 Lease maturities (1) As of August 31, 2019 , minimum payments due for lease liabilities for the remaining six months of fiscal 2020 and for each of the five succeeding fiscal years and thereafter are as follows: Operating Leases Finance Leases (in millions) 2020 $ 51.8 $ 6.4 2021 94.3 10.4 2022 81.6 6.2 2023 69.9 2.6 2024 63.5 0.5 2025 53.6 — Thereafter 310.9 — Total lease payments 725.6 26.1 Less: Interest (137.0 ) (0.9 ) Total lease liabilities $ 588.6 $ 25.2 As of February 28, 2019 , future payments were expected to be as follows: Operating Leases (in millions) 2020 $ 59.0 2021 58.2 2022 51.1 2023 47.9 2024 41.2 Thereafter 302.1 Total lease payments $ 559.5 (1) F or leases with terms in excess of 12 months at inception. Supplemental information For the Six Months Ended August 31, 2019 (in millions) Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows from operating leases $ 46.6 Operating cash flows from finance leases $ 0.3 Financing cash flows from finance leases $ 7.3 Right-of-use assets obtained in exchange for new lease liabilities: Operating leases $ 17.3 Finance leases $ 4.0 Weighted-average remaining lease term: Operating leases 11.9 years Finance leases 3.4 years Weighted-average discount rate: Operating leases 3.7 % Finance leases 2.7 % |
Stockholders' Equity
Stockholders' Equity | 6 Months Ended |
Aug. 31, 2019 | |
Equity [Abstract] | |
STOCKHOLDERS' EQUITY | STOCKHOLDERS’ EQUITY Common stock The number of shares of common stock issued and treasury stock, and associated share activity, are as follows: Common Stock Treasury Stock Class A Class B Class 1 Class A Class B Balance at February 28, 2019 185,740,178 28,322,419 1,149,624 18,927,966 5,005,800 Conversion of shares 133,667 (55 ) (133,612 ) — — Exercise of stock options (1) — — 2,107 (173,725 ) — Vesting of restricted stock units (2) — — — (88,683 ) — Vesting of performance share units (2) — — — (29,015 ) — Cancellation of restricted shares — — — 444 — Balance at May 31, 2019 185,873,845 28,322,364 1,018,119 18,636,987 5,005,800 Share repurchases — — — 265,593 — Conversion of shares 6,267 (543 ) (5,724 ) — — Exercise of stock options (1) — — — (258,628 ) — Employee stock purchases — — — (36,840 ) — Vesting of restricted stock units (2) — — — (2,148 ) — Balance at August 31, 2019 185,880,112 28,321,821 1,012,395 18,604,964 5,005,800 Balance at February 28, 2018 258,718,356 28,335,387 1,970 90,743,239 5,005,800 Share repurchases — — — 450,508 — Conversion of shares 5,144 (5,144 ) — — — Exercise of stock options 216,946 — 5,118 — — Vesting of restricted stock units (2) — — — (20,392 ) — Vesting of performance share units (2) — — — (62,352 ) — Balance at May 31, 2018 258,940,446 28,330,243 7,088 91,111,003 5,005,800 Share repurchases — — — 1,901,637 — Conversion of shares 2,500 (2,500 ) — — — Exercise of stock options 137,219 — 2,325 — — Employee stock purchases — — — (34,203 ) — Grant of restricted stock awards — — — (3,552 ) — Vesting of restricted stock units (2) — — — (3,074 ) — Balance at August 31, 2018 259,080,165 28,327,743 9,413 92,971,811 5,005,800 (1) Includes use of Class A Treasury Stock associated with stock option exercises beginning March 1, 2019. (2) Net of the following shares withheld to satisfy tax withholding requirements: For the Three Months Ended For the Three Months Ended For the Six 2019 Restricted Stock Units 48,562 1,176 49,738 Performance Share Units 17,439 — 17,439 2018 Restricted Stock Units 12,743 2,211 14,954 Performance Share Units 44,016 — 44,016 Stock repurchases In January 2018, our Board of Directors authorized the repurchase of up to $3.0 billion of our Class A Common Stock and Class B Convertible Common Stock (the “2018 Authorization”). The Board of Directors did not specify a date upon which this authorization would expire. Shares repurchased under the 2018 Authorization have become treasury shares. For the six months ended August 31, 2019 , we repurchased 265,593 shares of Class A Common Stock pursuant to the 2018 Authorization at an aggregate cost of $50.0 million through open market transactions. As of August 31, 2019 , total shares repurchased under the 2018 Authorizations are as follows: Class A Common Shares Repurchase Authorization Dollar Value of Shares Repurchased Number of Shares Repurchased (in millions, except share data) 2018 Authorization $ 3,000.0 $ 1,045.9 4,897,605 |
Net Income (Loss) Per Common Sh
Net Income (Loss) Per Common Share Attributable to CBI | 6 Months Ended |
Aug. 31, 2019 | |
Earnings Per Share [Abstract] | |
NET INCOME (LOSS) PER COMMON SHARE ATTRIBUTABLE TO CBI | NET INCOME (LOSS) PER COMMON SHARE ATTRIBUTABLE TO CBI For the six months and three months ended August 31, 2018 , net income (loss) per common share – diluted for Class A Common Stock has been computed using the if-converted method and assumes the exercise of stock options using the treasury stock method and the conversion of Class B Convertible Common Stock as this method is more dilutive than the two-class method. For the six months and three months ended August 31, 2018 , net income (loss) per common share – diluted for Class B Convertible Common Stock has been computed using the two-class method and does not assume conversion of Class B Convertible Common Stock into shares of Class A Common Stock. We have excluded 23,316,505 and 23,316,411 of Class B Convertible Common Stock and 3,367,943 and 3,304,955 of shares issuable under the assumed exercise of stock options using the treasury stock method from the calculation of diluted net income (loss) per share for the six months and three months ended August 31, 2019 , respectively, as the effect of including these would have been anti-dilutive. The computation of basic and diluted net income (loss) per common share is as follows: For the Six Months Ended August 31, 2019 August 31, 2018 Common Stock Common Stock Class A Class B Class A Class B (in millions, except per share data) Net income (loss) attributable to CBI allocated – basic $ (684.1 ) $ (86.5 ) $ 1,680.7 $ 212.6 Conversion of Class B common shares into Class A common shares — — 212.6 — Effect of stock-based awards on allocated net income (loss) — — — (5.2 ) Net income (loss) attributable to CBI allocated – diluted $ (684.1 ) $ (86.5 ) $ 1,893.3 $ 207.4 Weighted average common shares outstanding – basic 168.215 23.316 167.617 23.325 Conversion of Class B common shares into Class A common shares — — 23.325 — Stock-based awards, primarily stock options — — 5.526 — Weighted average common shares outstanding – diluted 168.215 23.316 196.468 23.325 Net income (loss) per common share attributable to CBI – basic $ (4.08 ) $ (3.71 ) $ 10.03 $ 9.11 Net income (loss) per common share attributable to CBI – diluted $ (4.08 ) $ (3.71 ) $ 9.64 $ 8.89 For the Three Months Ended August 31, 2019 August 31, 2018 Common Stock Common Stock Class A Class B Class A Class B (in millions, except per share data) Net income (loss) attributable to CBI allocated – basic $ (466.4 ) $ (58.8 ) $ 1,020.0 $ 129.5 Conversion of Class B common shares into Class A common shares — — 129.5 — Effect of stock-based awards on allocated net income (loss) — — — (3.2 ) Net income (loss) attributable to CBI allocated – diluted $ (466.4 ) $ (58.8 ) $ 1,149.5 $ 126.3 Weighted average common shares outstanding – basic 168.310 23.316 167.172 23.323 Conversion of Class B common shares into Class A common shares — — 23.323 — Stock-based awards, primarily stock options — — 5.412 — Weighted average common shares outstanding – diluted 168.310 23.316 195.907 23.323 Net income (loss) per common share attributable to CBI – basic $ (2.77 ) $ (2.52 ) $ 6.11 $ 5.55 Net income (loss) per common share attributable to CBI – diluted $ (2.77 ) $ (2.52 ) $ 5.87 $ 5.41 |
Comprehensive Income (Loss) Att
Comprehensive Income (Loss) Attributable to CBI | 6 Months Ended |
Aug. 31, 2019 | |
Equity [Abstract] | |
COMPREHENSIVE INCOME (LOSS) ATTRIBUTABLE TO CBI | COMPREHENSIVE INCOME (LOSS) ATTRIBUTABLE TO CBI Comprehensive income (loss) consists of net income (loss), foreign currency translation adjustments, net unrealized gain (loss) on derivative instruments, net unrealized gain (loss) on available-for-sale (“AFS”) debt securities, pension/postretirement adjustments, and our share of OCI of equity method investments. The reconciliation of net income (loss) attributable to CBI to comprehensive income (loss) attributable to CBI is as follows: Before Tax Amount Tax (Expense) Benefit Net of Tax Amount (in millions) For the Six Months Ended August 31, 2019 Net income (loss) attributable to CBI $ (770.6 ) Other comprehensive income (loss) attributable to CBI: Foreign currency translation adjustments: Net gain (loss) $ (58.2 ) $ — (58.2 ) Reclassification adjustments — — — Net gain (loss) recognized in other comprehensive income (loss) (58.2 ) — (58.2 ) Unrealized gain (loss) on cash flow hedges: Net derivative gain (loss) (38.4 ) 3.8 (34.6 ) Reclassification adjustments (6.0 ) (0.6 ) (6.6 ) Net gain (loss) recognized in other comprehensive income (loss) (44.4 ) 3.2 (41.2 ) Pension/postretirement adjustments: Net actuarial gain (loss) — — — Reclassification adjustments 0.1 — 0.1 Net gain (loss) recognized in other comprehensive income (loss) 0.1 — 0.1 Share of OCI of equity method investments Net gain (loss) (30.6 ) 7.2 (23.4 ) Reclassification adjustments — — — Net gain (loss) recognized in other comprehensive income (loss) (30.6 ) 7.2 (23.4 ) Other comprehensive income (loss) attributable to CBI $ (133.1 ) $ 10.4 (122.7 ) Comprehensive income (loss) attributable to CBI $ (893.3 ) For the Six Months Ended August 31, 2018 Net income (loss) attributable to CBI $ 1,893.3 Other comprehensive income (loss) attributable to CBI: Foreign currency translation adjustments: Net gain (loss) $ (92.5 ) $ — (92.5 ) Reclassification adjustments — — — Net gain (loss) recognized in other comprehensive income (loss) (92.5 ) — (92.5 ) Unrealized gain (loss) on cash flow hedges: Net derivative gain (loss) (9.2 ) 1.0 (8.2 ) Reclassification adjustments (4.7 ) 1.0 (3.7 ) Net gain (loss) recognized in other comprehensive income (loss) (13.9 ) 2.0 (11.9 ) Unrealized gain (loss) on AFS debt securities: Net AFS debt securities gain (loss) (0.4 ) 0.1 (0.3 ) Reclassification adjustments 1.9 0.9 2.8 Net gain (loss) recognized in other comprehensive income (loss) 1.5 1.0 2.5 Pension/postretirement adjustments: Net actuarial gain (loss) — — — Reclassification adjustments 0.3 (0.1 ) 0.2 Net gain (loss) recognized in other comprehensive income (loss) 0.3 (0.1 ) 0.2 Other comprehensive income (loss) attributable to CBI $ (104.6 ) $ 2.9 (101.7 ) Comprehensive income (loss) attributable to CBI $ 1,791.6 Before Tax Amount Tax (Expense) Benefit Net of Tax Amount (in millions) For the Three Months Ended August 31, 2019 Net income (loss) attributable to CBI $ (525.2 ) Other comprehensive income (loss) attributable to CBI: Foreign currency translation adjustments: Net gain (loss) $ (76.5 ) $ — (76.5 ) Reclassification adjustments — — — Net gain (loss) recognized in other comprehensive income (loss) (76.5 ) — (76.5 ) Unrealized gain (loss) on cash flow hedges: Net derivative gain (loss) (34.0 ) 2.1 (31.9 ) Reclassification adjustments (3.7 ) — (3.7 ) Net gain (loss) recognized in other comprehensive income (loss) (37.7 ) 2.1 (35.6 ) Pension/postretirement adjustments: Net actuarial gain (loss) (0.1 ) — (0.1 ) Reclassification adjustments 0.1 — 0.1 Net gain (loss) recognized in other comprehensive income (loss) — — — Share of OCI of equity method investments Net gain (loss) (11.8 ) 2.8 (9.0 ) Reclassification adjustments — — — Net gain (loss) recognized in other comprehensive income (loss) (11.8 ) 2.8 (9.0 ) Other comprehensive income (loss) attributable to CBI $ (126.0 ) $ 4.9 (121.1 ) Comprehensive income (loss) attributable to CBI $ (646.3 ) For the Three Months Ended August 31, 2018 Net income (loss) attributable to CBI $ 1,149.5 Other comprehensive income (loss) attributable to CBI: Foreign currency translation adjustments: Net gain (loss) $ 39.8 $ — 39.8 Reclassification adjustments — — — Net gain (loss) recognized in other comprehensive income (loss) 39.8 — 39.8 Unrealized gain (loss) on cash flow hedges: Net derivative gain (loss) 49.9 (15.6 ) 34.3 Reclassification adjustments 0.2 (0.3 ) (0.1 ) Net gain (loss) recognized in other comprehensive income (loss) 50.1 (15.9 ) 34.2 Other comprehensive income (loss) attributable to CBI $ 89.9 $ (15.9 ) 74.0 Comprehensive income (loss) attributable to CBI $ 1,223.5 Accumulated other comprehensive income (loss), net of income tax effect, includes the following components: Foreign Currency Translation Adjustments Net Unrealized Gain (Loss) on Derivative Instruments Pension/ Postretirement Adjustments Share of OCI of Equity Method Investments Accumulated Other Comprehensive Income (Loss) (in millions) Balance, February 28, 2019 $ (406.5 ) $ 25.1 $ (2.1 ) $ 29.6 $ (353.9 ) Other comprehensive income (loss): Other comprehensive income (loss) before reclassification adjustments (58.2 ) (34.6 ) — (23.4 ) (116.2 ) Amounts reclassified from accumulated other comprehensive income (loss) — (6.6 ) 0.1 — (6.5 ) Other comprehensive income (loss) (58.2 ) (41.2 ) 0.1 (23.4 ) (122.7 ) Balance, August 31, 2019 $ (464.7 ) $ (16.1 ) $ (2.0 ) $ 6.2 $ (476.6 ) |
Condensed Consolidating Financi
Condensed Consolidating Financial Information | 6 Months Ended |
Aug. 31, 2019 | |
Condensed Financial Information Disclosure [Abstract] | |
CONDENSED CONSOLIDATING FINANCIAL INFORMATION | CONDENSED CONSOLIDATING FINANCIAL INFORMATION The following information sets forth the condensed consolidating balance sheets as of August 31, 2019 , and February 28, 2019 , the condensed consolidating statements of comprehensive income (loss) for the six months and three months ended August 31, 2019 , and August 31, 2018 , and the condensed consolidating statements of cash flows for the six months ended August 31, 2019 , and August 31, 2018 , for the parent company, our combined subsidiaries which guarantee our senior notes (“Subsidiary Guarantors”), our combined subsidiaries which are not Subsidiary Guarantors (primarily foreign subsidiaries) (“Subsidiary Nonguarantors”) and the Company. 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 our 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 our senior notes. Separate financial information for our Subsidiary Guarantors are not presented because we have determined that such financial information 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 Note 1 of our consolidated financial statements included in our 2019 Annual Report, and include the recently adopted accounting guidance described in Note 2 and Note 14 herein. There are no restrictions on the ability of the Subsidiary Guarantors to transfer funds to us in the form of cash dividends, loans, or advances. Parent Company Subsidiary Guarantors Subsidiary Nonguarantors Eliminations Consolidated (in millions) Condensed Consolidating Balance Sheet at August 31, 2019 Current assets: Cash and cash equivalents $ 4.0 $ 3.9 $ 73.4 $ — $ 81.3 Accounts receivable 488.0 409.6 56.1 — 953.7 Inventories 56.2 1,024.3 420.4 (189.5 ) 1,311.4 Intercompany receivable 29,836.0 35,676.9 20,272.7 (85,785.6 ) — Prepaid expenses and other 122.1 61.7 363.0 (21.7 ) 525.1 Assets held for sale - current 158.7 381.2 126.1 — 666.0 Total current assets 30,665.0 37,557.6 21,311.7 (85,996.8 ) 3,537.5 Property, plant, and equipment 66.9 633.2 4,441.5 — 5,141.6 Investments in subsidiaries 26,237.5 1,605.4 3,218.1 (31,061.0 ) — Goodwill — 5,782.5 1,914.2 — 7,696.7 Intangible assets — 271.2 2,515.8 — 2,787.0 Intercompany notes receivable 2,764.6 — 559.0 (3,323.6 ) — Equity method investments — 0.5 3,003.3 — 3,003.8 Securities measured at fair value — — 1,572.2 — 1,572.2 Deferred income taxes 64.6 — 2,191.6 (109.4 ) 2,146.8 Assets held for sale 30.2 859.6 129.3 — 1,019.1 Other assets 29.3 340.7 280.4 — 650.4 Total assets $ 59,858.1 $ 47,050.7 $ 41,137.1 $ (120,490.8 ) $ 27,555.1 Current liabilities: Short-term borrowings $ 150.9 $ — $ — $ — $ 150.9 Current maturities of long-term debt 624.2 11.7 0.2 — 636.1 Accounts payable 47.3 212.3 349.0 — 608.6 Intercompany payable 34,441.2 32,851.1 18,493.3 (85,785.6 ) — Other accrued expenses and liabilities 376.2 300.4 172.7 (49.0 ) 800.3 Total current liabilities 35,639.8 33,375.5 19,015.2 (85,834.6 ) 2,195.9 Long-term debt, less current maturities 12,146.5 12.9 0.4 — 12,159.8 Intercompany notes payable 653.0 2,241.9 428.7 (3,323.6 ) — Deferred income taxes and other liabilities 41.3 848.4 728.1 (109.4 ) 1,508.4 Total liabilities 48,480.6 36,478.7 20,172.4 (89,267.6 ) 15,864.1 CBI stockholders’ equity 11,377.5 10,572.0 20,651.2 (31,223.2 ) 11,377.5 Noncontrolling interests — — 313.5 — 313.5 Total stockholders’ equity 11,377.5 10,572.0 20,964.7 (31,223.2 ) 11,691.0 Total liabilities and stockholders’ equity $ 59,858.1 $ 47,050.7 $ 41,137.1 $ (120,490.8 ) $ 27,555.1 Parent Company Subsidiary Guarantors Subsidiary Nonguarantors Eliminations Consolidated (in millions) Condensed Consolidating Balance Sheet at February 28, 2019 Current assets: Cash and cash equivalents $ 11.0 $ 2.6 $ 80.0 $ — $ 93.6 Accounts receivable 435.6 370.6 40.7 — 846.9 Inventories 197.7 1,485.4 609.9 (162.6 ) 2,130.4 Intercompany receivable 29,712.5 33,775.4 20,050.6 (83,538.5 ) — Prepaid expenses and other 89.9 78.1 446.7 (1.6 ) 613.1 Total current assets 30,446.7 35,712.1 21,227.9 (83,702.7 ) 3,684.0 Property, plant, and equipment 85.3 786.8 4,395.2 — 5,267.3 Investments in subsidiaries 26,533.8 1,599.6 2,982.1 (31,115.5 ) — Goodwill — 6,185.5 1,903.3 — 8,088.8 Intangible assets — 605.0 2,593.1 — 3,198.1 Intercompany notes receivable 3,218.6 — 38.6 (3,257.2 ) — Equity method investments — 1.7 3,463.9 — 3,465.6 Securities measured at fair value — — 3,234.7 — 3,234.7 Deferred income taxes 69.2 — 2,183.3 (69.2 ) 2,183.3 Other assets 17.3 1.1 91.3 — 109.7 Total assets $ 60,370.9 $ 44,891.8 $ 42,113.4 $ (118,144.6 ) $ 29,231.5 Current liabilities: Short-term borrowings $ 732.5 $ — $ 59.0 $ — $ 791.5 Current maturities of long-term debt 1,052.8 12.2 0.2 — 1,065.2 Accounts payable 59.6 141.3 415.8 — 616.7 Intercompany payable 33,787.6 31,428.9 18,322.0 (83,538.5 ) — Other accrued expenses and liabilities 374.3 184.0 156.6 (24.5 ) 690.4 Total current liabilities 36,006.8 31,766.4 18,953.6 (83,563.0 ) 3,163.8 Long-term debt, less current maturities 11,743.4 16.0 0.4 — 11,759.8 Intercompany notes payable 38.5 2,694.4 524.3 (3,257.2 ) — Deferred income taxes and other liabilities 31.2 540.5 955.9 (56.9 ) 1,470.7 Total liabilities 47,819.9 35,017.3 20,434.2 (86,877.1 ) 16,394.3 CBI stockholders’ equity 12,551.0 9,874.5 21,393.0 (31,267.5 ) 12,551.0 Noncontrolling interests — — 286.2 — 286.2 Total stockholders’ equity 12,551.0 9,874.5 21,679.2 (31,267.5 ) 12,837.2 Total liabilities and stockholders’ equity $ 60,370.9 $ 44,891.8 $ 42,113.4 $ (118,144.6 ) $ 29,231.5 Parent Company Subsidiary Guarantors Subsidiary Nonguarantors Eliminations Consolidated (in millions) Condensed Consolidating Statement of Comprehensive Income (Loss) for the Six Months Ended August 31, 2019 Sales $ 1,366.7 $ 4,126.1 $ 2,307.3 $ (2,944.2 ) $ 4,855.9 Excise taxes (168.4 ) (240.3 ) (6.0 ) — (414.7 ) Net sales 1,198.3 3,885.8 2,301.3 (2,944.2 ) 4,441.2 Cost of product sold (934.4 ) (3,057.4 ) (1,143.2 ) 2,908.4 (2,226.6 ) Gross profit 263.9 828.4 1,158.1 (35.8 ) 2,214.6 Selling, general, and administrative expenses (235.3 ) (535.8 ) (110.9 ) 9.6 (872.4 ) Operating income (loss) 28.6 292.6 1,047.2 (26.2 ) 1,342.2 Equity in earnings (losses) of equity method investees and subsidiaries and related activities (541.2 ) 5.3 (352.0 ) 299.3 (588.6 ) Unrealized net gain (loss) on securities measured at fair value — — (1,666.6 ) — (1,666.6 ) Net gain (loss) on sale of unconsolidated investment — — (0.1 ) — (0.1 ) Interest income 0.5 0.3 8.4 — 9.2 Intercompany interest income 109.2 185.7 170.8 (465.7 ) — Interest expense (233.9 ) (0.5 ) (1.0 ) — (235.4 ) Intercompany interest expense (219.1 ) (48.6 ) (198.0 ) 465.7 — Loss on extinguishment of debt (2.4 ) — — — (2.4 ) Income (loss) before income taxes (858.3 ) 434.8 (991.3 ) 273.1 (1,141.7 ) (Provision for) benefit from income taxes 87.7 (100.4 ) 396.1 4.2 387.6 Net income (loss) (770.6 ) 334.4 (595.2 ) 277.3 (754.1 ) Net income (loss) attributable to noncontrolling interests — — (16.5 ) — (16.5 ) Net income (loss) attributable to CBI $ (770.6 ) $ 334.4 $ (611.7 ) $ 277.3 $ (770.6 ) Comprehensive income (loss) attributable to CBI $ (893.3 ) $ 333.7 $ (742.5 ) $ 408.8 $ (893.3 ) Condensed Consolidating Statement of Comprehensive Income (Loss) for the Six Months Ended August 31, 2018 Sales $ 1,491.2 $ 3,993.9 $ 2,004.7 $ (2,734.1 ) $ 4,755.7 Excise taxes (179.7 ) (223.6 ) (6.2 ) — (409.5 ) Net sales 1,311.5 3,770.3 1,998.5 (2,734.1 ) 4,346.2 Cost of product sold (1,034.8 ) (2,820.2 ) (1,015.1 ) 2,740.7 (2,129.4 ) Gross profit 276.7 950.1 983.4 6.6 2,216.8 Selling, general, and administrative expenses (271.6 ) (452.1 ) (114.2 ) 11.5 (826.4 ) Operating income (loss) 5.1 498.0 869.2 18.1 1,390.4 Equity in earnings (losses) of equity method investees and subsidiaries and related activities 2,145.9 (26.0 ) 326.7 (2,444.0 ) 2.6 Unrealized net gain (loss) on securities measured at fair value — — 950.4 — 950.4 Net gain (loss) on sale of unconsolidated investment — — 99.8 — 99.8 Interest income 0.1 — 3.4 — 3.5 Intercompany interest income 135.3 321.5 2.4 (459.2 ) — Interest expense (164.6 ) (0.5 ) (14.2 ) — (179.3 ) Intercompany interest expense (271.0 ) (99.0 ) (89.2 ) 459.2 — Income (loss) before income taxes 1,850.8 694.0 2,148.5 (2,425.9 ) 2,267.4 (Provision for) benefit from income taxes 42.5 (167.9 ) (246.4 ) 2.0 (369.8 ) Net income (loss) 1,893.3 526.1 1,902.1 (2,423.9 ) 1,897.6 Net income (loss) attributable to noncontrolling interests — — (4.3 ) — (4.3 ) Net income (loss) attributable to CBI $ 1,893.3 $ 526.1 $ 1,897.8 $ (2,423.9 ) $ 1,893.3 Comprehensive income (loss) attributable to CBI $ 1,791.6 $ 525.5 $ 1,796.3 $ (2,321.8 ) $ 1,791.6 Parent Company Subsidiary Guarantors Subsidiary Nonguarantors Eliminations Consolidated (in millions) Condensed Consolidating Statement of Comprehensive Income (Loss) for the Three Months Ended August 31, 2019 Sales $ 737.5 $ 2,194.2 $ 1,121.4 $ (1,479.7 ) $ 2,573.4 Excise taxes (91.5 ) (134.9 ) (3.0 ) — (229.4 ) Net sales 646.0 2,059.3 1,118.4 (1,479.7 ) 2,344.0 Cost of product sold (513.8 ) (1,606.7 ) (557.1 ) 1,519.5 (1,158.1 ) Gross profit 132.2 452.6 561.3 39.8 1,185.9 Selling, general, and administrative expenses (122.2 ) (272.1 ) (77.0 ) 4.9 (466.4 ) Operating income (loss) 10.0 180.5 484.3 44.7 719.5 Equity in earnings (losses) of equity method investees and subsidiaries and related activities (401.9 ) 0.2 (350.7 ) 266.8 (485.6 ) Unrealized net gain (loss) on securities measured at fair value — — (839.1 ) — (839.1 ) Interest income 0.5 0.3 4.1 — 4.9 Intercompany interest income 70.3 94.8 168.8 (333.9 ) — Interest expense (115.9 ) (0.2 ) (0.4 ) — (116.5 ) Intercompany interest expense (130.5 ) (22.2 ) (181.2 ) 333.9 — Loss on extinguishment of debt (2.4 ) — — — (2.4 ) Income (loss) before income taxes (569.9 ) 253.4 (714.2 ) 311.5 (719.2 ) (Provision for) benefit from income taxes 44.7 (60.1 ) 226.4 (8.8 ) 202.2 Net income (loss) (525.2 ) 193.3 (487.8 ) 302.7 (517.0 ) Net income (loss) attributable to noncontrolling interests — — (8.2 ) — (8.2 ) Net income (loss) attributable to CBI $ (525.2 ) $ 193.3 $ (496.0 ) $ 302.7 $ (525.2 ) Comprehensive income (loss) attributable to CBI $ (646.3 ) $ 192.9 $ (616.2 ) $ 423.3 $ (646.3 ) Condensed Consolidating Statement of Comprehensive Income (Loss) for the Three Months Ended August 31, 2018 Sales $ 808.6 $ 2,112.7 $ 997.1 $ (1,392.7 ) $ 2,525.7 Excise taxes (100.9 ) (122.7 ) (3.0 ) — (226.6 ) Net sales 707.7 1,990.0 994.1 (1,392.7 ) 2,299.1 Cost of product sold (548.0 ) (1,498.1 ) (516.8 ) 1,432.0 (1,130.9 ) Gross profit 159.7 491.9 477.3 39.3 1,168.2 Selling, general, and administrative expenses (130.3 ) (213.4 ) (64.7 ) 5.2 (403.2 ) Operating income (loss) 29.4 278.5 412.6 44.5 765.0 Equity in earnings (losses) of equity method investees and subsidiaries and related activities 1,235.3 (13.5 ) 179.5 (1,403.4 ) (2.1 ) Unrealized net gain (loss) on securities measured at fair value — — 692.1 — 692.1 Net gain (loss) on sale of unconsolidated investment — — (1.6 ) — (1.6 ) Interest income 0.1 — 3.0 — 3.1 Intercompany interest income 67.7 162.7 1.5 (231.9 ) — Interest expense (84.3 ) (0.2 ) (6.6 ) — (91.1 ) Intercompany interest expense (137.4 ) (49.5 ) (45.0 ) 231.9 — Income (loss) before income taxes 1,110.8 378.0 1,235.5 (1,358.9 ) 1,365.4 (Provision for) benefit from income taxes 38.7 (91.0 ) (150.3 ) (11.5 ) (214.1 ) Net income (loss) 1,149.5 287.0 1,085.2 (1,370.4 ) 1,151.3 Net income (loss) attributable to noncontrolling interests — — (1.8 ) — (1.8 ) Net income (loss) attributable to CBI $ 1,149.5 $ 287.0 $ 1,083.4 $ (1,370.4 ) $ 1,149.5 Comprehensive income (loss) attributable to CBI $ 1,223.5 $ 287.0 $ 1,158.1 $ (1,445.1 ) $ 1,223.5 Parent Company Subsidiary Guarantors Subsidiary Nonguarantors Eliminations Consolidated (in millions) Condensed Consolidating Statement of Cash Flows for the Six Months Ended August 31, 2019 Net cash provided by (used in) operating activities $ 430.0 $ 9.8 $ 1,062.8 $ (83.2 ) $ 1,419.4 Cash flows from investing activities: Purchases of property, plant, and equipment (24.9 ) (34.8 ) (295.5 ) — (355.2 ) Purchases of businesses, net of cash acquired — — (36.2 ) — (36.2 ) Investments in equity method investees and securities — — (33.0 ) — (33.0 ) Net proceeds from (repayments of) intercompany notes (309.2 ) — — 309.2 — Net contributions from (investment in) equity affiliates (85.4 ) — — 85.4 — Other investing activities 0.2 0.1 (1.6 ) — (1.3 ) Net cash provided by (used in) investing activities (419.3 ) (34.7 ) (366.3 ) 394.6 (425.7 ) Cash flows from financing activities: Dividends paid to parent company — — (109.7 ) 109.7 — Net contributions from (investment in) equity affiliates — — 111.9 (111.9 ) — Net proceeds from (repayments of) intercompany notes 901.4 47.5 (639.7 ) (309.2 ) — Principal payments of long-term debt (1,318.8 ) (7.6 ) (5.1 ) — (1,331.5 ) Net proceeds from (repayments of) short-term borrowings (581.5 ) — (59.0 ) — (640.5 ) Dividends paid (285.0 ) — — — (285.0 ) Purchases of treasury stock (50.0 ) — — — (50.0 ) Payments of minimum tax withholdings on stock-based payment awards — (13.7 ) (0.5 ) — (14.2 ) Payments of debt issuance costs (8.0 ) — — — (8.0 ) Proceeds from issuance of long-term debt 1,291.3 — — — 1,291.3 Proceeds from shares issued under equity compensation plans 32.9 — — — 32.9 Net cash provided by (used in) financing activities (17.7 ) 26.2 (702.1 ) (311.4 ) (1,005.0 ) Effect of exchange rate changes on cash and cash equivalents — — (1.0 ) — (1.0 ) Net increase (decrease) in cash and cash equivalents (7.0 ) 1.3 (6.6 ) — (12.3 ) Cash and cash equivalents, beginning of period 11.0 2.6 80.0 — 93.6 Cash and cash equivalents, end of period $ 4.0 $ 3.9 $ 73.4 $ — $ 81.3 Parent Company Subsidiary Guarantors Subsidiary Nonguarantors Eliminations Consolidated (in millions) Condensed Consolidating Statement of Cash Flows for the Six Months Ended August 31, 2018 Net cash provided by (used in) operating activities $ (84.4 ) $ 778.1 $ 644.8 $ — $ 1,338.5 Cash flows from investing activities: Purchases of property, plant, and equipment (15.5 ) (58.2 ) (296.9 ) — (370.6 ) Purchases of businesses, net of cash acquired — (19.5 ) (0.7 ) — (20.2 ) Investments in equity method investees and securities — — (152.1 ) — (152.1 ) Proceeds from sale of unconsolidated investment — — 110.2 — 110.2 Proceeds from sales of assets 0.3 38.3 6.1 — 44.7 Net proceeds from (repayments of) intercompany notes 456.5 — — (456.5 ) — Net contributions from (investment in) equity affiliates (15.8 ) (11.1 ) — 26.9 — Other investing activities — — (0.8 ) — (0.8 ) Net cash provided by (used in) investing activities 425.5 (50.5 ) (334.2 ) (429.6 ) (388.8 ) Cash flows from financing activities: Dividends paid to parent company — — (29.5 ) 29.5 — Net contributions from (investment in) equity affiliates — 32.7 23.7 (56.4 ) — Net proceeds from (repayments of) intercompany notes 57.6 (740.3 ) 226.2 456.5 — Principal payments of long-term debt (4.5 ) (8.5 ) (10.5 ) — (23.5 ) Net proceeds from (repayments of) short-term borrowings 381.7 — (414.1 ) — (32.4 ) Dividends paid (279.1 ) — — — (279.1 ) Purchases of treasury stock (504.3 ) — — — (504.3 ) Payments of minimum tax withholdings on stock-based payment awards — (12.7 ) (0.8 ) — (13.5 ) Payments of debt issuance costs (13.6 ) — — — (13.6 ) Proceeds from issuance of long-term debt — — 12.0 — 12.0 Proceeds from shares issued under equity compensation plans 21.5 — — — 21.5 Net cash provided by (used in) financing activities (340.7 ) (728.8 ) (193.0 ) 429.6 (832.9 ) Effect of exchange rate changes on cash and cash equivalents — — (1.0 ) — (1.0 ) Net increase (decrease) in cash and cash equivalents 0.4 (1.2 ) 116.6 — 115.8 Cash and cash equivalents, beginning of period 4.6 4.4 81.3 — 90.3 Cash and cash equivalents, end of period $ 5.0 $ 3.2 $ 197.9 $ — $ 206.1 |
Business Segment Information
Business Segment Information | 6 Months Ended |
Aug. 31, 2019 | |
Segment Reporting [Abstract] | |
BUSINESS SEGMENT INFORMATION | BUSINESS SEGMENT INFORMATION Through February 28, 2019, our internal management financial reporting consisted of two business divisions: (i) Beer and (ii) Wine and Spirits. Beginning March 1, 2019, as a result of our November 2018 Canopy Investment and a change in our chief operating decision maker (“CODM”) on March 1, 2019, we have changed our internal management financial reporting to consist of three business divisions: (i) Beer, (ii) Wine and Spirits, and (iii) Canopy. Consequently, beginning with the first quarter of fiscal 2020, we report our operating results in four segments: (i) Beer, (ii) Wine and Spirits, (iii) Corporate Operations and Other, and (iv) Canopy. The Canopy Equity Method Investment makes up the Canopy segment. In the Beer segment, our portfolio consists of high-end imported and craft beer brands. We have an exclusive perpetual brand license to import, market, and sell in the U.S. our Mexican beer portfolio. In the Wine and Spirits segment, we sell a portfolio that includes higher-margin, higher-growth wine brands complemented by certain higher-end spirits brands. Amounts included in the Corporate Operations and Other segment consist of costs of executive management, corporate development, corporate finance, corporate growth and strategy, human resources, internal audit, investor relations, legal, public relations, and information technology, as well as our investments made through our corporate venture capital function . All costs included in the Corporate Operations and Other segment are general costs that are applicable to the consolidated group and are therefore not allocated to the other reportable segments. All costs reported within the Corporate Operations and Other segment are not included in our CODM’s evaluation of the operating income (loss) performance of the other reportable segments. The business segments reflect how our operations are managed, how resources are allocated, how operating performance is evaluated by senior management, and the structure of our internal financial reporting. Long-lived tangible assets and total asset information by segment is not provided to, or reviewed by, our CODM as it is not used to make strategic decisions, allocate resources, or assess performance. In addition, management excludes items that affect comparability (“Comparable Adjustments”) from its evaluation of the results of each operating segment as these Comparable Adjustments are not reflective of core operations of the segments. Segment operating performance and segment management compensation are evaluated based upon core segment operating income (loss). As such, the performance measures for incentive compensation purposes for segment management do not include the impact of these Comparable Adjustments. We evaluate segment operating performance based on operating income (loss) of the respective business units. Comparable Adjustments that impacted comparability in our segment operating income (loss) for each period are as follows: For the Six Months Ended August 31, For the Three Months Ended August 31, 2019 2018 2019 2018 (in millions) Cost of product sold Strategic business development costs $ (62.5 ) $ — $ (18.0 ) $ — Settlements of undesignated commodity derivative contracts (48.4 ) (5.1 ) (18.4 ) (3.6 ) Accelerated depreciation (5.3 ) (5.0 ) (1.8 ) (1.6 ) Flow through of inventory step-up (1.2 ) (1.4 ) (0.8 ) (0.8 ) Net gain (loss) on undesignated commodity derivative contracts 26.8 9.6 10.9 (5.8 ) Recovery of (loss on) inventory write-down 8.6 (1.5 ) 8.6 — Total cost of product sold (82.0 ) (3.4 ) (19.5 ) (11.8 ) Selling, general, and administrative expenses Net gain (loss) on foreign currency derivative contracts associated with acquisition of investment — (7.1 ) — (7.1 ) Restructuring and other strategic business development costs (50.1 ) (8.6 ) (26.5 ) (4.3 ) Transaction, integration, and other acquisition-related costs (5.5 ) (1.0 ) (3.2 ) (1.0 ) Impairment of intangible assets (11.0 ) — (11.0 ) — Deferred compensation — (16.3 ) — — Other gains (losses) (1) 1.1 8.5 (12.3 ) 8.5 Total selling, general, and administrative expenses (65.5 ) (24.5 ) (53.0 ) (3.9 ) Comparable Adjustments, Operating income (loss) $ (147.5 ) $ (27.9 ) $ (72.5 ) $ (15.7 ) (1) Includes a gain of $11.8 million for the six months ended August 31, 2019 , in connection with the increase in our ownership interest in Nelson’s Green Brier and a loss of $11.4 million and $13.3 million for the six months and three months ended August 31, 2019 , respectively, in connection with an increase in estimated fair value of a contingent liability associated with a prior period acquisition. The accounting policies of the segments are the same as those described for the Company in Note 1 of our consolidated financial statements included in our 2019 Annual Report, and include the recently adopted accounting guidance described in Note 2 and Note 14 herein. Amounts included below for the Canopy segment represent 100% of Canopy’s reported results on a two-month lag, prepared in accordance with U.S. GAAP , and converted from Canadian dollars to U.S. dollars. Although we own less than 100% of the outstanding shares of Canopy, 100% of the Canopy results are included in the information below and subsequently eliminated in order to reconcile to our consolidated financial statements . Segment information is as follows: For the Six Months Ended August 31, For the Three Months Ended August 31, 2019 2018 2019 2018 (in millions) Beer Net sales $ 3,117.8 $ 2,902.2 $ 1,640.4 $ 1,527.1 Segment operating income (loss) $ 1,265.9 $ 1,150.6 $ 685.3 $ 630.6 Capital expenditures $ 272.8 $ 296.3 $ 170.7 $ 159.8 Depreciation and amortization $ 106.2 $ 100.5 $ 51.9 $ 51.0 Wine and Spirits Net sales: Wine $ 1,146.1 $ 1,262.8 $ 611.1 $ 671.0 Spirits 177.3 181.2 92.5 101.0 Net sales $ 1,323.4 $ 1,444.0 $ 703.6 $ 772.0 Segment operating income (loss) $ 321.2 $ 369.2 $ 160.4 $ 201.4 Income (loss) from unconsolidated investments $ 3.0 $ 3.8 $ (1.0 ) $ (1.0 ) Equity method investments $ 76.8 $ 79.1 $ 76.8 $ 79.1 Capital expenditures $ 43.1 $ 58.8 $ 16.2 $ 31.0 Depreciation and amortization $ 50.0 $ 49.2 $ 25.0 $ 24.8 Corporate Operations and Other Segment operating income (loss) $ (97.4 ) $ (101.5 ) $ (53.7 ) $ (51.3 ) Income (loss) from unconsolidated investments $ (1.3 ) $ (1.2 ) $ (0.2 ) $ (1.1 ) Equity method investments $ 81.0 $ 41.2 $ 81.0 $ 41.2 Capital expenditures $ 39.3 $ 15.5 $ 12.6 $ 11.6 Depreciation and amortization $ 10.5 $ 17.1 $ 5.2 $ 8.7 Canopy Net sales $ 138.4 NA $ 67.7 NA Segment operating income (loss) $ (330.5 ) NA $ (160.5 ) NA Capital expenditures $ 270.6 NA $ 158.4 NA Depreciation and amortization $ 35.0 NA $ 17.4 NA Consolidation and Eliminations Net sales $ (138.4 ) $ — $ (67.7 ) $ — Operating income (loss) $ 330.5 $ — $ 160.5 $ — Income (loss) from unconsolidated investments $ (109.1 ) $ — $ (54.7 ) $ — Equity method investments $ 2,846.0 $ — $ 2,846.0 $ — Capital expenditures $ (270.6 ) $ — $ (158.4 ) $ — Depreciation and amortization $ (35.0 ) $ — $ (17.4 ) $ — For the Six Months Ended August 31, For the Three Months Ended August 31, 2019 2018 2019 2018 (in millions) Comparable Adjustments Operating income (loss) $ (147.5 ) $ (27.9 ) $ (72.5 ) $ (15.7 ) Income (loss) from unconsolidated investments $ (2,147.9 ) $ 1,050.2 $ (1,268.8 ) $ 690.5 Depreciation and amortization $ 5.3 $ 5.0 $ 1.8 $ 1.6 Consolidated Net sales $ 4,441.2 $ 4,346.2 $ 2,344.0 $ 2,299.1 Operating income (loss) $ 1,342.2 $ 1,390.4 $ 719.5 $ 765.0 Income (loss) from unconsolidated investments (1) $ (2,255.3 ) $ 1,052.8 $ (1,324.7 ) $ 688.4 Equity method investments $ 3,003.8 $ 120.3 $ 3,003.8 $ 120.3 Capital expenditures $ 355.2 $ 370.6 $ 199.5 $ 202.4 Depreciation and amortization $ 172.0 $ 171.8 $ 83.9 $ 86.1 (1) Income (loss) from unconsolidated investments consists of: For the Six Months Ended For the Three Months Ended August 31, August 31, August 31, August 31, (in millions) Unrealized net gain (loss) on securities measured at fair value $ (1,666.6 ) $ 950.4 $ (839.1 ) $ 692.1 Net gain (loss) on sale of unconsolidated investment (i) (0.1 ) 99.8 — (1.6 ) Equity in earnings (losses) of equity method investees and related activities (ii) (588.6 ) 2.6 (485.6 ) (2.1 ) $ (2,255.3 ) $ 1,052.8 $ (1,324.7 ) $ 688.4 (i) In May 2018, we completed the sale of our remaining interest in our previously-owned Australian and European business (the “Accolade Wine Investment”) for A$149.1 million, or $113.6 million, subject to closing adjustments. We received cash proceeds, net of direct costs to sell, of $110.2 million and a note receivable of $3.4 million. This interest consisted of an investment accounted for under the cost method and available-for-sale debt securities. (ii) Includes the June 2019 Warrant Modification Loss. |
Basis of Presentation (Policies
Basis of Presentation (Policies) | 6 Months Ended |
Aug. 31, 2019 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Basis of presentation | Unless the context otherwise requires, the terms “Company,” “CBI,” “we,” “our,” or “us” refer to Constellation Brands, Inc. and its subsidiaries. We have prepared the consolidated financial statements included herein, without audit, pursuant to the rules and regulations of the Securities and Exchange Commission applicable to quarterly reporting on Form 10-Q and reflect, in our opinion, all adjustments necessary to present fairly our financial information. All such adjustments are of a normal recurring nature. Certain information and footnote disclosures normally included in financial statements, prepared in accordance with generally accepted accounting principles, have been condensed or omitted as permitted by such rules and regulations. These consolidated financial statements and related notes should be read in conjunction with the consolidated financial statements and related notes included in our Annual Report on Form 10-K for the fiscal year ended February 28, 2019 (the “2019 Annual Report”), and include the recently adopted accounting guidance described in Note 2 and Note 14 herein. Results of operations for interim periods are not necessarily indicative of annual results. |
Accounting Guidance (Policies)
Accounting Guidance (Policies) | 6 Months Ended |
Aug. 31, 2019 | |
New Accounting Pronouncements and Changes in Accounting Principles [Abstract] | |
Leases | Recently adopted accounting guidance In February 2016, the FASB issued guidance for the accounting for leases. Under this guidance, a lessee recognizes assets and liabilities on its balance sheet for most leases. Lease expense continues to be consistent with previous guidance. Additionally, this guidance requires enhanced disclosures regarding the amount, timing, and uncertainty of cash flows arising from leasing arrangements. We adopted the guidance on March 1, 2019, using the modified retrospective approach, accordingly, prior period balances and disclosures have not been restated. We elected the package of transition practical expedients for expired or existing contracts, which retains prior conclusions reached on lease identification, classification, and initial direct costs incurred. We finalized the implementation of changes to our accounting policies, systems and controls, including a new leasing software to capture the required data for accounting and disclosure. The adoption of this guidance resulted in the recognition of operating lease right-of-use assets of $585.4 million and operating lease liabilities of $619.7 million as of March 1, 2019, and did not have a material impact on our results of operations or liquidity. For additional information on leases, refer to Note 14 . |
Inventories (Tables)
Inventories (Tables) | 6 Months Ended |
Aug. 31, 2019 | |
Inventory Disclosure [Abstract] | |
Components of inventories | Elements of cost include materials, labor, and overhead and consist of the following: August 31, 2019 (1) February 28, (in millions) Raw materials and supplies $ 147.0 $ 182.6 In-process inventories 792.2 1,480.5 Finished case goods 372.2 467.3 $ 1,311.4 $ 2,130.4 (1) The inventory balance at August 31, 2019 , excludes amounts reclassified to assets held for sale (see Note 4 ). |
Wine and Spirits Transformati_2
Wine and Spirits Transformation (Tables) | 6 Months Ended |
Aug. 31, 2019 | |
Text Block [Abstract] | |
Components of assets held for sale | The carrying value of assets held for sale consists of the following: August 31, 2019 Wine and Spirits Transaction Black Velvet Transaction Total (in millions) Assets Inventories $ 593.7 $ 63.3 $ 657.0 Prepaid expenses and other 9.0 — 9.0 Assets held for sale - current 602.7 63.3 666.0 Property, plant, and equipment 175.8 18.2 194.0 Goodwill 353.2 62.6 415.8 Intangible assets 347.2 59.8 407.0 Equity method investments 1.1 — 1.1 Other assets 0.3 0.9 1.2 Assets held for sale 877.6 141.5 1,019.1 Liabilities Accounts payable 4.7 — 4.7 Other accrued expenses and liabilities 31.1 1.6 32.7 Deferred income taxes and other liabilities 0.1 2.1 2.2 Liabilities held for sale (1) 35.9 3.7 39.6 Net assets held for sale $ 1,444.4 $ 201.1 $ 1,645.5 (1) Liabilities held for sale are included in the Consolidated Balance Sheet as of August 31, 2019 , within the respective liability line items noted above. |
Components of restructuring charges | We recognized charges in connection with our ongoing efforts to gain efficiencies and reduce our cost structure within the Wine and Spirits segment as follows: Results of Operations Location For the Six Months Ended August 31, 2019 For the Three Months Ended August 31, 2019 (in millions) Loss on inventory write-downs Cost of product sold $ 40.9 $ 13.7 Contract termination costs Cost of product sold 20.1 4.3 Employee termination costs Selling, general, and administrative expenses 12.1 0.2 Impairment of long-lived assets Selling, general, and administrative expenses 27.0 27.0 Other costs Selling, general, and administrative expenses 6.3 — $ 106.4 $ 45.2 |
Derivative Instruments (Tables)
Derivative Instruments (Tables) | 6 Months Ended |
Aug. 31, 2019 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Aggregate notional value of outstanding derivative instruments | The aggregate notional value of outstanding derivative instruments is as follows: August 31, February 28, (in millions) Derivative instruments designated as hedging instruments Foreign currency contracts $ 1,959.9 $ 1,579.3 Interest rate swap contracts $ 375.0 $ — Derivative instruments not designated as hedging instruments Foreign currency contracts $ 781.2 $ 460.3 Commodity derivative contracts $ 265.1 $ 284.7 |
Fair value and location of derivative instruments on our balance sheets | The estimated fair value and location of our derivative instruments on our balance sheets are as follows (see Note 6 ): Assets Liabilities August 31, February 28, August 31, February 28, (in millions) Derivative instruments designated as hedging instruments Foreign currency contracts: Prepaid expenses and other $ 9.6 $ 14.1 Other accrued expenses and liabilities $ 24.0 $ 8.8 Other assets $ 11.6 $ 22.1 Deferred income taxes and other liabilities $ 18.6 $ 6.3 Interest rate swap contracts: Prepaid expenses and other $ 0.1 $ — Other accrued expenses and liabilities $ 0.8 $ — Derivative instruments not designated as hedging instruments Foreign currency contracts: Prepaid expenses and other $ 4.5 $ 2.0 Other accrued expenses and liabilities $ 11.0 $ 0.6 Commodity derivative contracts: Prepaid expenses and other $ 1.2 $ 6.1 Other accrued expenses and liabilities $ 15.6 $ 6.1 Other assets $ 0.3 $ 2.6 Deferred income taxes and other liabilities $ 10.7 $ 5.5 |
Effect of derivative instruments on our results of operations | The effect of our undesignated derivative instruments on our results of operations is as follows: Derivative Instruments Not Designated as Hedging Instruments Location of Net Gain (Loss) Recognized in Income (Loss) Net Gain (Loss) Recognized in Income (Loss) (in millions) For the Six Months Ended August 31, 2019 Commodity derivative contracts Cost of product sold $ (26.8 ) Foreign currency contracts Selling, general, and administrative expenses (8.9 ) $ (35.7 ) For the Six Months Ended August 31, 2018 Commodity derivative contracts Cost of product sold $ 9.6 Foreign currency contracts Selling, general, and administrative expenses (28.1 ) Interest rate swap contracts Interest expense 2.7 $ (15.8 ) For the Three Months Ended August 31, 2019 Commodity derivative contracts Cost of product sold $ (10.9 ) Foreign currency contracts Selling, general and administrative expenses (5.1 ) $ (16.0 ) For the Three Months Ended August 31, 2018 Commodity derivative contracts Cost of product sold $ (5.8 ) Foreign currency contracts Selling, general and administrative expenses (26.2 ) Interest rate swap contracts Interest expense 2.7 $ (29.3 ) The principal effect of our derivative instruments designated in cash flow hedging relationships on our results of operations, as well as Other Comprehensive Income (Loss) (“OCI”), net of income tax effect, is as follows: Derivative Instruments in Designated Cash Flow Hedging Relationships Net Gain (Loss) Recognized in OCI Location of Net Gain (Loss) Reclassified from AOCI to Income (Loss) Net Gain (Loss) Reclassified from AOCI to Income (Loss) (in millions) For the Six Months Ended August 31, 2019 Foreign currency contracts $ (35.6 ) Sales $ — Cost of product sold 7.8 Interest rate swap contracts (0.6 ) Interest expense — $ (36.2 ) $ 7.8 For the Six Months Ended August 31, 2018 Foreign currency contracts $ (7.0 ) Sales $ 0.1 Cost of product sold 4.7 $ (7.0 ) $ 4.8 Derivative Instruments in Designated Cash Flow Hedging Relationships Net Gain (Loss) Recognized in OCI Location of Net Gain (Loss) Reclassified from AOCI to Income (Loss) Net Gain (Loss) Reclassified from AOCI to Income (Loss) (in millions) For the Three Months Ended August 31, 2019 Foreign currency contracts $ (33.2 ) Sales $ — Cost of product sold 4.2 Interest rate swap contracts (0.6 ) Interest expense — $ (33.8 ) $ 4.2 For the Three Months Ended August 31, 2018 Foreign currency contracts $ 37.9 Sales $ — Cost of product sold 0.6 $ 37.9 $ 0.6 |
Fair Value of Financial Instr_2
Fair Value of Financial Instruments (Tables) | 6 Months Ended |
Aug. 31, 2019 | |
Fair Value Disclosures [Abstract] | |
Fair value measurement inputs | The inputs used to estimate the fair value of the Canopy warrants (all as defined in Note 9 ) are as follows: August 31, 2019 (1) February 28, 2019 New Tranche A Warrants (2) New Tranche B Warrants (3) November 2017 Canopy Warrants (2) November (2) November 2017 Canopy Warrants (2) Exercise price (4) C$ 50.40 C$ 76.68 C$ 12.98 C$ 50.40 C$ 12.98 Valuation date stock price (5) C$ 31.46 C$ 31.46 C$ 31.46 C$ 62.38 C$ 62.38 Expected life (6) 4.2 years 7.2 years 0.7 years 2.7 years 1.2 years Expected volatility (7) 65.0 % 65.0 % 69.6 % 79.3 % 87.8 % Risk-free interest rate (8) 1.2 % 1.2 % 1.6 % 1.8 % 1.8 % Expected dividend yield (9) 0.0 % 0.0 % 0.0 % 0.0 % 0.0 % (1) New Tranche C Warrants are not included in the table as there is no fair value assigned. (2) The fair value is estimated using the Black-Scholes option-pricing model (Level 2 fair value measurement). (3) The fair value is estimated using Monte Carlo simulations (Level 2 fair value measurement). (4) Based on the exercise price from the applicable underlying agreements. (5) Based on the closing market price for Canopy common stock on the Toronto Stock Exchange (“TSX”) as of the applicable date. (6) Based on the expiration date of the warrants. (7) Based on consideration of historical and/or implied volatility levels of the underlying equity security and limited consideration of historical peer group volatility levels. (8) Based on the implied yield currently available on Canadian Treasury zero coupon issues with a remaining term equal to the expected life. (9) Based on historical dividend levels. The inputs used to estimate the fair value of the Canopy Debt Securities are as follows: August 31, February 28, Conversion price (1) C$ 48.17 C$ 48.17 Valuation date stock price (2) C$ 31.46 C$ 62.38 Remaining term (3) 3.9 years 4.4 years Expected volatility (4) 49.0 % 45.9 % Risk-free interest rate (5) 1.3 % 1.8 % Expected dividend yield (6) 0.0 % 0.0 % (1) Based on the rate which the Canopy Debt Securities may be converted into equity shares, or the equivalent amount of cash, at the option of the issuer. (2) Based on the closing market price for Canopy common stock on the TSX as of the applicable date. (3) Based on the contractual maturity date of the notes. (4) Based on historical volatility levels of the underlying equity security reduced to account for certain risks not incorporated into the option-pricing model. (5) Based on the implied yield currently available on Canadian Treasury zero coupon issues with a term equal to the remaining contractual term of the debt securities. (6) Based on historical dividend levels. The inputs used to estimate the fair value of the New November 2018 Canopy Warrants as of the June 27, 2019 modification date, are as follows: New Tranche A Warrants (1) New Tranche B Warrants (1) Exercise price C$ 50.40 C$ 76.68 Valuation date stock price C$ 53.36 C$ 53.36 Expected life 4.3 years 7.3 years Expected volatility 66.7 % 66.7 % Risk-free interest rate 1.4 % 1.4 % Expected dividend yield 0.0 % 0.0 % |
Financial assets and liabilities measured at estimated fair value on a recurring basis | The following table presents our financial assets and liabilities measured at estimated fair value on a recurring basis: Fair Value Measurements Using Quoted Prices in Active Markets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Total (in millions) August 31, 2019 Assets: Foreign currency contracts $ — $ 25.7 $ — $ 25.7 Commodity derivative contracts $ — $ 1.5 $ — $ 1.5 Interest rate swap contracts $ — $ 0.1 $ — $ 0.1 Equity securities (1) $ — $ 1,438.0 $ — $ 1,438.0 Canopy Debt Securities (1) $ — $ 134.2 $ — $ 134.2 Liabilities: Foreign currency contracts $ — $ 53.6 $ — $ 53.6 Commodity derivative contracts $ — $ 26.3 $ — $ 26.3 Interest rate swap contracts $ — $ 0.8 $ — $ 0.8 February 28, 2019 Assets: Foreign currency contracts $ — $ 38.2 $ — $ 38.2 Commodity derivative contracts $ — $ 8.7 $ — $ 8.7 Equity securities (1) $ — $ 3,023.2 $ — $ 3,023.2 Canopy Debt Securities (1) $ — $ 211.5 $ — $ 211.5 Liabilities: Foreign currency contracts $ — $ 15.7 $ — $ 15.7 Commodity derivative contracts $ — $ 11.6 $ — $ 11.6 (1) Unrealized net gain (loss) from the changes in fair value of our securities measured at fair value recognized in income (loss) from unconsolidated investments are as follows: For the Six Months Ended For the Three Months Ended August 31, 2019 August 31, 2018 August 31, 2019 August 31, 2018 (in millions) November 2017 Canopy Investment (i) $ — $ 461.0 $ — $ 328.1 November 2017 Canopy Warrants (450.8 ) 435.9 (316.7 ) 310.5 November 2018 Canopy Warrants (ii) (1,134.4 ) — (473.6 ) — Canopy Debt Securities (81.4 ) 53.5 (48.8 ) 53.5 $ (1,666.6 ) $ 950.4 $ (839.1 ) $ 692.1 (i) Accounted for at fair value from the date of investment in November 2017 through October 31, 2018. Accounted for under the equity method from November 1, 2018. For additional information on the November 2017 Canopy Investment, refer to Note 9. (ii) The terms of the November 2018 Canopy Warrants were modified in June 2019. For additional information on the November 2018 Canopy Warrants and the related modification, refer to Note 9. The amounts are net of a $1,176.0 million unrealized gain resulting from the June 2019 Warrant Modification for the six months and three months ended August 31, 2019. |
Assets and liabilities measured at fair value on a nonrecurring basis | The following table presents our assets and liabilities measured at estimated fair value on a nonrecurring basis for which an impairment assessment was performed for the period presented: Fair Value Measurements Using Quoted Prices in Active Markets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Total Losses (in millions) For the Six Months Ended August 31, 2019 Long-lived assets held for sale $ — $ — $ 1,444.4 $ 27.0 Trademarks $ — $ — $ 17.0 $ 11.0 Total $ — $ — $ 1,461.4 $ 38.0 |
Goodwill (Tables)
Goodwill (Tables) | 6 Months Ended |
Aug. 31, 2019 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Changes in the carrying amount of goodwill | The changes in the carrying amount of goodwill are as follows: Beer Wine and Spirits Consolidated (in millions) Balance, February 28, 2018 $ 5,157.6 $ 2,925.5 $ 8,083.1 Purchase accounting allocations (1) 22.3 2.7 25.0 Foreign currency translation adjustments (12.0 ) (7.3 ) (19.3 ) Balance, February 28, 2019 5,167.9 2,920.9 8,088.8 Purchase accounting allocations (2) — 58.8 58.8 Foreign currency translation adjustments (26.0 ) (9.1 ) (35.1 ) Reclassified to assets held for sale (3) — (415.8 ) (415.8 ) Balance, August 31, 2019 $ 5,141.9 $ 2,554.8 $ 7,696.7 (1) Purchase accounting allocations associated primarily with the acquisition of F our Corners (Beer). See defined acquisition term below. (2) Preliminary purchase accounting allocations associated primarily with the acquisition of Nelson’s Green Brier (Wine and Spirits). See defined acquisition term below. (3) In connection with the Wine and Spirits Transaction and the Black Velvet Transaction, goodwill associated with the businesses being sold were reclassified to assets held for sale based on the relative fair values of the portion of the business being sold and the remaining wine and spirits portfolio. The relative fair values were determined using the income approach based on assumptions, including projected revenue growth rates, terminal growth rate, and discount rate and other projected financial information. |
Intangible Assets (Tables)
Intangible Assets (Tables) | 6 Months Ended |
Aug. 31, 2019 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Major components of intangible assets, Amortizable intangible assets | The major components of intangible assets are as follows: August 31, 2019 February 28, 2019 Gross Carrying Amount Net Carrying Amount Gross Carrying Amount Net Carrying Amount (in millions) Amortizable intangible assets Customer relationships $ 89.9 $ 36.4 $ 89.9 $ 39.1 Other 20.4 0.6 20.5 0.9 Total $ 110.3 37.0 $ 110.4 40.0 Nonamortizable intangible assets Trademarks (1) 2,750.0 3,158.1 Total intangible assets $ 2,787.0 $ 3,198.1 (1) The intangible assets balance at August 31, 2019 , excludes trademarks reclassified to assets held for sale (see Note 4 ). |
Major components of intangible assets, Nonamortizable intangible assets | The major components of intangible assets are as follows: August 31, 2019 February 28, 2019 Gross Carrying Amount Net Carrying Amount Gross Carrying Amount Net Carrying Amount (in millions) Amortizable intangible assets Customer relationships $ 89.9 $ 36.4 $ 89.9 $ 39.1 Other 20.4 0.6 20.5 0.9 Total $ 110.3 37.0 $ 110.4 40.0 Nonamortizable intangible assets Trademarks (1) 2,750.0 3,158.1 Total intangible assets $ 2,787.0 $ 3,198.1 (1) The intangible assets balance at August 31, 2019 , excludes trademarks reclassified to assets held for sale (see Note 4 ). |
Equity Method Investments (Tabl
Equity Method Investments (Tables) | 6 Months Ended |
Aug. 31, 2019 | |
Equity Method Investments and Joint Ventures [Abstract] | |
Equity method investments | The following table presents summarized financial information for Canopy presented in accordance with U.S. GAAP. We recognize our equity in earnings (losses) for Canopy on a two-month lag. Accordingly, we recognized our share of Canopy’s fourth quarter fiscal 2019 and first quarter fiscal 2020 earnings (losses) for the period January through June 2019 in our six months ended August 31, 2019 . We recognized our share of Canopy’s first quarter fiscal 2020 earnings (losses) for the period April through June 2019, in our three months ended August 31, 2019 results. The amounts shown represent 100% of Canopy’s results of operations for the respective periods. However, they exclude the impact the June 2019 Warrant Modification Loss because it was recorded within equity. For the Six Months Ended August 31, For the Three Months Ended August 31, 2019 2018 2019 2018 (in millions) Net sales $ 138.4 NA $ 67.7 NA Gross profit $ 21.1 NA $ 9.8 NA Net gain (loss) $ (418.6 ) NA $ (149.7 ) NA Net gain (loss) attributable to Canopy $ (430.4 ) NA $ (146.3 ) NA NA = Not Applicable Our equity method investments are as follows: August 31, 2019 February 28, 2019 Carrying Value Ownership Percentage Carrying Value Ownership Percentage (in millions) Canopy Equity Method Investment $ 2,846.0 35.6 % $ 3,332.1 36.0 % Other equity method investments 157.8 20%-50% 133.5 20%-50% $ 3,003.8 $ 3,465.6 |
Fair value measurement inputs | The inputs used to estimate the fair value of the Canopy warrants (all as defined in Note 9 ) are as follows: August 31, 2019 (1) February 28, 2019 New Tranche A Warrants (2) New Tranche B Warrants (3) November 2017 Canopy Warrants (2) November (2) November 2017 Canopy Warrants (2) Exercise price (4) C$ 50.40 C$ 76.68 C$ 12.98 C$ 50.40 C$ 12.98 Valuation date stock price (5) C$ 31.46 C$ 31.46 C$ 31.46 C$ 62.38 C$ 62.38 Expected life (6) 4.2 years 7.2 years 0.7 years 2.7 years 1.2 years Expected volatility (7) 65.0 % 65.0 % 69.6 % 79.3 % 87.8 % Risk-free interest rate (8) 1.2 % 1.2 % 1.6 % 1.8 % 1.8 % Expected dividend yield (9) 0.0 % 0.0 % 0.0 % 0.0 % 0.0 % (1) New Tranche C Warrants are not included in the table as there is no fair value assigned. (2) The fair value is estimated using the Black-Scholes option-pricing model (Level 2 fair value measurement). (3) The fair value is estimated using Monte Carlo simulations (Level 2 fair value measurement). (4) Based on the exercise price from the applicable underlying agreements. (5) Based on the closing market price for Canopy common stock on the Toronto Stock Exchange (“TSX”) as of the applicable date. (6) Based on the expiration date of the warrants. (7) Based on consideration of historical and/or implied volatility levels of the underlying equity security and limited consideration of historical peer group volatility levels. (8) Based on the implied yield currently available on Canadian Treasury zero coupon issues with a remaining term equal to the expected life. (9) Based on historical dividend levels. The inputs used to estimate the fair value of the Canopy Debt Securities are as follows: August 31, February 28, Conversion price (1) C$ 48.17 C$ 48.17 Valuation date stock price (2) C$ 31.46 C$ 62.38 Remaining term (3) 3.9 years 4.4 years Expected volatility (4) 49.0 % 45.9 % Risk-free interest rate (5) 1.3 % 1.8 % Expected dividend yield (6) 0.0 % 0.0 % (1) Based on the rate which the Canopy Debt Securities may be converted into equity shares, or the equivalent amount of cash, at the option of the issuer. (2) Based on the closing market price for Canopy common stock on the TSX as of the applicable date. (3) Based on the contractual maturity date of the notes. (4) Based on historical volatility levels of the underlying equity security reduced to account for certain risks not incorporated into the option-pricing model. (5) Based on the implied yield currently available on Canadian Treasury zero coupon issues with a term equal to the remaining contractual term of the debt securities. (6) Based on historical dividend levels. The inputs used to estimate the fair value of the New November 2018 Canopy Warrants as of the June 27, 2019 modification date, are as follows: New Tranche A Warrants (1) New Tranche B Warrants (1) Exercise price C$ 50.40 C$ 76.68 Valuation date stock price C$ 53.36 C$ 53.36 Expected life 4.3 years 7.3 years Expected volatility 66.7 % 66.7 % Risk-free interest rate 1.4 % 1.4 % Expected dividend yield 0.0 % 0.0 % |
Other Assets (Tables)
Other Assets (Tables) | 6 Months Ended |
Aug. 31, 2019 | |
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] | |
Components of other assets | The major components of other assets are as follows: August 31, February 28, (in millions) Operating lease right-of-use asset $ 552.8 $ — Other 97.6 109.7 $ 650.4 $ 109.7 |
Borrowings (Tables)
Borrowings (Tables) | 6 Months Ended |
Aug. 31, 2019 | |
Debt Disclosure [Abstract] | |
Borrowings | As of August 31, 2019 , information with respect to borrowings under the 2018 Credit Agreement, the Term Credit Agreement, and the 2019 Term Credit Agreement is as follows: 2018 Credit Agreement Term Credit Agreement 2019 Term Credit Agreement Revolving Credit Facility Three-Year Term Facility (1) Five-Year Term Facility (1) (2) 2019 Five-Year Term Facility (1) (in millions) Outstanding borrowings $ — $ 499.6 $ 562.0 $ 491.3 Interest rate — % 3.4 % 3.5 % 3.1 % LIBOR margin 1.13 % 1.13 % 1.25 % 0.88 % Outstanding letters of credit $ 12.2 Remaining borrowing capacity (3) $ 1,836.8 (1) Outstanding term loan facilities borrowings are net of unamortized debt issuance costs. (2) Outstanding borrowings reflect a $400.0 million partial repayment of the Five-Year Term Facility under our Term Credit Agreement. (3) Net of outstanding revolving credit facility borrowings and outstanding letters of credit under the 2018 Credit Agreement and outstanding borrowings under our commercial paper program of $151.0 million (excluding unamortized discount) (see “Commercial paper program”). As of August 31, 2019 , aggregate credit facilities under the 2018 Credit Agreement, the Term Credit Agreement, and the 2019 Term Credit Agreement consist of the following: Amount Maturity (in millions) 2018 Credit Agreement Revolving Credit Facility (1) (2) $ 2,000.0 Sept 14, 2023 Term Credit Agreement Three-Year Term Facility (1) (3) $ 500.0 Nov 1, 2021 Five-Year Term Facility (1) (3) $ 1,000.0 Nov 1, 2023 $ 1,500.0 2019 Term Credit Agreement 2019 Five-Year Term Facility (1) (3) $ 491.3 Jun 28, 2024 (1) Contractual interest rate varies based on our debt rating (as defined in the respective agreement) and is a function of LIBOR plus a margin, or the base rate plus a margin, or, in certain circumstances where LIBOR cannot be adequately ascertained or available, an alternative benchmark rate plus a margin. (2) We and/or CB International are the borrower under the $2,000.0 million Revolving Credit Facility. Includes a sub-facility for letters of credit of up to $200.0 million . (3) We are the borrower under the Three-Year Term Facility, the Five-Year Term Facility, and the 2019 Five-Year Term Facility. Borrowings consist of the following: August 31, 2019 February 28, Current Long-term Total Total (in millions) Short-term borrowings Senior credit facility, Revolving credit loan $ — $ 59.0 Commercial paper 150.9 732.5 $ 150.9 $ 791.5 Long-term debt Senior credit facility, Term loan $ — $ — $ — $ 492.8 Term loan credit facilities 24.6 1,528.3 1,552.9 1,486.4 Senior notes 599.6 10,618.2 11,217.8 10,816.9 Other 11.9 13.3 25.2 28.9 $ 636.1 $ 12,159.8 $ 12,795.9 $ 12,825.0 |
Schedule of Maturities of Long-term Debt [Table Text Block] | As of August 31, 2019 , the required principal repayments under long-term debt obligations (excluding unamortized debt issuance costs and unamortized discounts of $68.4 million and $14.7 million , respectively) for the remaining six months of fiscal 2020 and for each of the five succeeding fiscal years and thereafter are as follows: (in millions) 2020 $ 618.4 2021 734.6 2022 1,680.6 2023 1,827.2 2024 1,637.5 2025 780.7 Thereafter 5,600.0 $ 12,879.0 |
Deferred Income Taxes and Oth_2
Deferred Income Taxes and Other Liabilities (Tables) | 6 Months Ended |
Aug. 31, 2019 | |
Other Liabilities Disclosure [Abstract] | |
Components of deferred income taxes and other liabilities | The major components of deferred income taxes and other liabilities are as follows: August 31, February 28, (in millions) Deferred income taxes $ 561.3 $ 1,029.7 Operating lease liability 511.9 — Unrecognized tax benefit liabilities 249.8 239.0 Long-term income tax payable 95.4 95.4 Other 90.0 106.6 $ 1,508.4 $ 1,470.7 |
Leases (Tables)
Leases (Tables) | 6 Months Ended |
Aug. 31, 2019 | |
Leases [Abstract] | |
Summary of lease right-of-use assets and liabilities | A summary of lease right-of-use assets and liabilities are as follows: Balance Sheet Classification August 31, (in millions) Assets Operating lease Other assets $ 552.8 Finance lease Property, plant, and equipment 26.4 Total right-of-use assets $ 579.2 Liabilities Current: Operating lease Other accrued expenses and liabilities $ 76.7 Finance lease Current maturities of long-term debt 11.9 Non-Current: Operating lease Deferred income taxes and other liabilities 511.9 Finance lease Long-term debt, less current maturities 13.3 Total lease liabilities $ 613.8 |
Lease cost components | The components of total lease cost are as follows: For the Six Months Ended August 31, 2019 For the Three Months Ended August 31, 2019 (in millions) Operating lease cost $ 46.5 $ 23.1 Finance lease cost: Amortization of right-of-use assets 5.6 2.8 Interest on lease liabilities 0.3 0.1 Short-term lease cost 4.2 1.9 Variable lease cost 95.4 51.5 Total lease cost $ 152.0 $ 79.4 |
Operating lease maturities | As of August 31, 2019 , minimum payments due for lease liabilities for the remaining six months of fiscal 2020 and for each of the five succeeding fiscal years and thereafter are as follows: Operating Leases Finance Leases (in millions) 2020 $ 51.8 $ 6.4 2021 94.3 10.4 2022 81.6 6.2 2023 69.9 2.6 2024 63.5 0.5 2025 53.6 — Thereafter 310.9 — Total lease payments 725.6 26.1 Less: Interest (137.0 ) (0.9 ) Total lease liabilities $ 588.6 $ 25.2 |
Finance lease maturities | As of August 31, 2019 , minimum payments due for lease liabilities for the remaining six months of fiscal 2020 and for each of the five succeeding fiscal years and thereafter are as follows: Operating Leases Finance Leases (in millions) 2020 $ 51.8 $ 6.4 2021 94.3 10.4 2022 81.6 6.2 2023 69.9 2.6 2024 63.5 0.5 2025 53.6 — Thereafter 310.9 — Total lease payments 725.6 26.1 Less: Interest (137.0 ) (0.9 ) Total lease liabilities $ 588.6 $ 25.2 |
Future payments of noncancelable operating lease | As of February 28, 2019 , future payments were expected to be as follows: Operating Leases (in millions) 2020 $ 59.0 2021 58.2 2022 51.1 2023 47.9 2024 41.2 Thereafter 302.1 Total lease payments $ 559.5 (1) F or leases with terms in excess of 12 months at inception. |
Supplemental cash flow information | Supplemental information For the Six Months Ended August 31, 2019 (in millions) Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows from operating leases $ 46.6 Operating cash flows from finance leases $ 0.3 Financing cash flows from finance leases $ 7.3 Right-of-use assets obtained in exchange for new lease liabilities: Operating leases $ 17.3 Finance leases $ 4.0 Weighted-average remaining lease term: Operating leases 11.9 years Finance leases 3.4 years Weighted-average discount rate: Operating leases 3.7 % Finance leases 2.7 % |
Stockholders' Equity (Tables)
Stockholders' Equity (Tables) | 6 Months Ended |
Aug. 31, 2019 | |
Equity [Abstract] | |
Number of shares of common stock issued and treasury stock, and associated share activity | The number of shares of common stock issued and treasury stock, and associated share activity, are as follows: Common Stock Treasury Stock Class A Class B Class 1 Class A Class B Balance at February 28, 2019 185,740,178 28,322,419 1,149,624 18,927,966 5,005,800 Conversion of shares 133,667 (55 ) (133,612 ) — — Exercise of stock options (1) — — 2,107 (173,725 ) — Vesting of restricted stock units (2) — — — (88,683 ) — Vesting of performance share units (2) — — — (29,015 ) — Cancellation of restricted shares — — — 444 — Balance at May 31, 2019 185,873,845 28,322,364 1,018,119 18,636,987 5,005,800 Share repurchases — — — 265,593 — Conversion of shares 6,267 (543 ) (5,724 ) — — Exercise of stock options (1) — — — (258,628 ) — Employee stock purchases — — — (36,840 ) — Vesting of restricted stock units (2) — — — (2,148 ) — Balance at August 31, 2019 185,880,112 28,321,821 1,012,395 18,604,964 5,005,800 Balance at February 28, 2018 258,718,356 28,335,387 1,970 90,743,239 5,005,800 Share repurchases — — — 450,508 — Conversion of shares 5,144 (5,144 ) — — — Exercise of stock options 216,946 — 5,118 — — Vesting of restricted stock units (2) — — — (20,392 ) — Vesting of performance share units (2) — — — (62,352 ) — Balance at May 31, 2018 258,940,446 28,330,243 7,088 91,111,003 5,005,800 Share repurchases — — — 1,901,637 — Conversion of shares 2,500 (2,500 ) — — — Exercise of stock options 137,219 — 2,325 — — Employee stock purchases — — — (34,203 ) — Grant of restricted stock awards — — — (3,552 ) — Vesting of restricted stock units (2) — — — (3,074 ) — Balance at August 31, 2018 259,080,165 28,327,743 9,413 92,971,811 5,005,800 (1) Includes use of Class A Treasury Stock associated with stock option exercises beginning March 1, 2019. (2) Net of the following shares withheld to satisfy tax withholding requirements: For the Three Months Ended For the Three Months Ended For the Six 2019 Restricted Stock Units 48,562 1,176 49,738 Performance Share Units 17,439 — 17,439 2018 Restricted Stock Units 12,743 2,211 14,954 Performance Share Units 44,016 — 44,016 |
Summary of share repurchase activity | As of August 31, 2019 , total shares repurchased under the 2018 Authorizations are as follows: Class A Common Shares Repurchase Authorization Dollar Value of Shares Repurchased Number of Shares Repurchased (in millions, except share data) 2018 Authorization $ 3,000.0 $ 1,045.9 4,897,605 |
Net Income (Loss) Per Common _2
Net Income (Loss) Per Common Share Attributable to CBI (Tables) | 6 Months Ended |
Aug. 31, 2019 | |
Earnings Per Share [Abstract] | |
Basic and diluted net income (loss) per common share attributable to CBI | The computation of basic and diluted net income (loss) per common share is as follows: For the Six Months Ended August 31, 2019 August 31, 2018 Common Stock Common Stock Class A Class B Class A Class B (in millions, except per share data) Net income (loss) attributable to CBI allocated – basic $ (684.1 ) $ (86.5 ) $ 1,680.7 $ 212.6 Conversion of Class B common shares into Class A common shares — — 212.6 — Effect of stock-based awards on allocated net income (loss) — — — (5.2 ) Net income (loss) attributable to CBI allocated – diluted $ (684.1 ) $ (86.5 ) $ 1,893.3 $ 207.4 Weighted average common shares outstanding – basic 168.215 23.316 167.617 23.325 Conversion of Class B common shares into Class A common shares — — 23.325 — Stock-based awards, primarily stock options — — 5.526 — Weighted average common shares outstanding – diluted 168.215 23.316 196.468 23.325 Net income (loss) per common share attributable to CBI – basic $ (4.08 ) $ (3.71 ) $ 10.03 $ 9.11 Net income (loss) per common share attributable to CBI – diluted $ (4.08 ) $ (3.71 ) $ 9.64 $ 8.89 For the Three Months Ended August 31, 2019 August 31, 2018 Common Stock Common Stock Class A Class B Class A Class B (in millions, except per share data) Net income (loss) attributable to CBI allocated – basic $ (466.4 ) $ (58.8 ) $ 1,020.0 $ 129.5 Conversion of Class B common shares into Class A common shares — — 129.5 — Effect of stock-based awards on allocated net income (loss) — — — (3.2 ) Net income (loss) attributable to CBI allocated – diluted $ (466.4 ) $ (58.8 ) $ 1,149.5 $ 126.3 Weighted average common shares outstanding – basic 168.310 23.316 167.172 23.323 Conversion of Class B common shares into Class A common shares — — 23.323 — Stock-based awards, primarily stock options — — 5.412 — Weighted average common shares outstanding – diluted 168.310 23.316 195.907 23.323 Net income (loss) per common share attributable to CBI – basic $ (2.77 ) $ (2.52 ) $ 6.11 $ 5.55 Net income (loss) per common share attributable to CBI – diluted $ (2.77 ) $ (2.52 ) $ 5.87 $ 5.41 |
Comprehensive Income (Loss) A_2
Comprehensive Income (Loss) Attributable to CBI (Tables) | 6 Months Ended |
Aug. 31, 2019 | |
Equity [Abstract] | |
Reconciliation of net income (loss) attributable to CBI to comprehensive income (loss) attributable to CBI | The reconciliation of net income (loss) attributable to CBI to comprehensive income (loss) attributable to CBI is as follows: Before Tax Amount Tax (Expense) Benefit Net of Tax Amount (in millions) For the Six Months Ended August 31, 2019 Net income (loss) attributable to CBI $ (770.6 ) Other comprehensive income (loss) attributable to CBI: Foreign currency translation adjustments: Net gain (loss) $ (58.2 ) $ — (58.2 ) Reclassification adjustments — — — Net gain (loss) recognized in other comprehensive income (loss) (58.2 ) — (58.2 ) Unrealized gain (loss) on cash flow hedges: Net derivative gain (loss) (38.4 ) 3.8 (34.6 ) Reclassification adjustments (6.0 ) (0.6 ) (6.6 ) Net gain (loss) recognized in other comprehensive income (loss) (44.4 ) 3.2 (41.2 ) Pension/postretirement adjustments: Net actuarial gain (loss) — — — Reclassification adjustments 0.1 — 0.1 Net gain (loss) recognized in other comprehensive income (loss) 0.1 — 0.1 Share of OCI of equity method investments Net gain (loss) (30.6 ) 7.2 (23.4 ) Reclassification adjustments — — — Net gain (loss) recognized in other comprehensive income (loss) (30.6 ) 7.2 (23.4 ) Other comprehensive income (loss) attributable to CBI $ (133.1 ) $ 10.4 (122.7 ) Comprehensive income (loss) attributable to CBI $ (893.3 ) For the Six Months Ended August 31, 2018 Net income (loss) attributable to CBI $ 1,893.3 Other comprehensive income (loss) attributable to CBI: Foreign currency translation adjustments: Net gain (loss) $ (92.5 ) $ — (92.5 ) Reclassification adjustments — — — Net gain (loss) recognized in other comprehensive income (loss) (92.5 ) — (92.5 ) Unrealized gain (loss) on cash flow hedges: Net derivative gain (loss) (9.2 ) 1.0 (8.2 ) Reclassification adjustments (4.7 ) 1.0 (3.7 ) Net gain (loss) recognized in other comprehensive income (loss) (13.9 ) 2.0 (11.9 ) Unrealized gain (loss) on AFS debt securities: Net AFS debt securities gain (loss) (0.4 ) 0.1 (0.3 ) Reclassification adjustments 1.9 0.9 2.8 Net gain (loss) recognized in other comprehensive income (loss) 1.5 1.0 2.5 Pension/postretirement adjustments: Net actuarial gain (loss) — — — Reclassification adjustments 0.3 (0.1 ) 0.2 Net gain (loss) recognized in other comprehensive income (loss) 0.3 (0.1 ) 0.2 Other comprehensive income (loss) attributable to CBI $ (104.6 ) $ 2.9 (101.7 ) Comprehensive income (loss) attributable to CBI $ 1,791.6 Before Tax Amount Tax (Expense) Benefit Net of Tax Amount (in millions) For the Three Months Ended August 31, 2019 Net income (loss) attributable to CBI $ (525.2 ) Other comprehensive income (loss) attributable to CBI: Foreign currency translation adjustments: Net gain (loss) $ (76.5 ) $ — (76.5 ) Reclassification adjustments — — — Net gain (loss) recognized in other comprehensive income (loss) (76.5 ) — (76.5 ) Unrealized gain (loss) on cash flow hedges: Net derivative gain (loss) (34.0 ) 2.1 (31.9 ) Reclassification adjustments (3.7 ) — (3.7 ) Net gain (loss) recognized in other comprehensive income (loss) (37.7 ) 2.1 (35.6 ) Pension/postretirement adjustments: Net actuarial gain (loss) (0.1 ) — (0.1 ) Reclassification adjustments 0.1 — 0.1 Net gain (loss) recognized in other comprehensive income (loss) — — — Share of OCI of equity method investments Net gain (loss) (11.8 ) 2.8 (9.0 ) Reclassification adjustments — — — Net gain (loss) recognized in other comprehensive income (loss) (11.8 ) 2.8 (9.0 ) Other comprehensive income (loss) attributable to CBI $ (126.0 ) $ 4.9 (121.1 ) Comprehensive income (loss) attributable to CBI $ (646.3 ) For the Three Months Ended August 31, 2018 Net income (loss) attributable to CBI $ 1,149.5 Other comprehensive income (loss) attributable to CBI: Foreign currency translation adjustments: Net gain (loss) $ 39.8 $ — 39.8 Reclassification adjustments — — — Net gain (loss) recognized in other comprehensive income (loss) 39.8 — 39.8 Unrealized gain (loss) on cash flow hedges: Net derivative gain (loss) 49.9 (15.6 ) 34.3 Reclassification adjustments 0.2 (0.3 ) (0.1 ) Net gain (loss) recognized in other comprehensive income (loss) 50.1 (15.9 ) 34.2 Other comprehensive income (loss) attributable to CBI $ 89.9 $ (15.9 ) 74.0 Comprehensive income (loss) attributable to CBI $ 1,223.5 |
Accumulated other comprehensive income (loss), net of income tax effect | Accumulated other comprehensive income (loss), net of income tax effect, includes the following components: Foreign Currency Translation Adjustments Net Unrealized Gain (Loss) on Derivative Instruments Pension/ Postretirement Adjustments Share of OCI of Equity Method Investments Accumulated Other Comprehensive Income (Loss) (in millions) Balance, February 28, 2019 $ (406.5 ) $ 25.1 $ (2.1 ) $ 29.6 $ (353.9 ) Other comprehensive income (loss): Other comprehensive income (loss) before reclassification adjustments (58.2 ) (34.6 ) — (23.4 ) (116.2 ) Amounts reclassified from accumulated other comprehensive income (loss) — (6.6 ) 0.1 — (6.5 ) Other comprehensive income (loss) (58.2 ) (41.2 ) 0.1 (23.4 ) (122.7 ) Balance, August 31, 2019 $ (464.7 ) $ (16.1 ) $ (2.0 ) $ 6.2 $ (476.6 ) |
Condensed Consolidating Finan_2
Condensed Consolidating Financial Information (Tables) | 6 Months Ended |
Aug. 31, 2019 | |
Condensed Financial Information Disclosure [Abstract] | |
Condensed Consolidating Balance Sheet | Parent Company Subsidiary Guarantors Subsidiary Nonguarantors Eliminations Consolidated (in millions) Condensed Consolidating Balance Sheet at August 31, 2019 Current assets: Cash and cash equivalents $ 4.0 $ 3.9 $ 73.4 $ — $ 81.3 Accounts receivable 488.0 409.6 56.1 — 953.7 Inventories 56.2 1,024.3 420.4 (189.5 ) 1,311.4 Intercompany receivable 29,836.0 35,676.9 20,272.7 (85,785.6 ) — Prepaid expenses and other 122.1 61.7 363.0 (21.7 ) 525.1 Assets held for sale - current 158.7 381.2 126.1 — 666.0 Total current assets 30,665.0 37,557.6 21,311.7 (85,996.8 ) 3,537.5 Property, plant, and equipment 66.9 633.2 4,441.5 — 5,141.6 Investments in subsidiaries 26,237.5 1,605.4 3,218.1 (31,061.0 ) — Goodwill — 5,782.5 1,914.2 — 7,696.7 Intangible assets — 271.2 2,515.8 — 2,787.0 Intercompany notes receivable 2,764.6 — 559.0 (3,323.6 ) — Equity method investments — 0.5 3,003.3 — 3,003.8 Securities measured at fair value — — 1,572.2 — 1,572.2 Deferred income taxes 64.6 — 2,191.6 (109.4 ) 2,146.8 Assets held for sale 30.2 859.6 129.3 — 1,019.1 Other assets 29.3 340.7 280.4 — 650.4 Total assets $ 59,858.1 $ 47,050.7 $ 41,137.1 $ (120,490.8 ) $ 27,555.1 Current liabilities: Short-term borrowings $ 150.9 $ — $ — $ — $ 150.9 Current maturities of long-term debt 624.2 11.7 0.2 — 636.1 Accounts payable 47.3 212.3 349.0 — 608.6 Intercompany payable 34,441.2 32,851.1 18,493.3 (85,785.6 ) — Other accrued expenses and liabilities 376.2 300.4 172.7 (49.0 ) 800.3 Total current liabilities 35,639.8 33,375.5 19,015.2 (85,834.6 ) 2,195.9 Long-term debt, less current maturities 12,146.5 12.9 0.4 — 12,159.8 Intercompany notes payable 653.0 2,241.9 428.7 (3,323.6 ) — Deferred income taxes and other liabilities 41.3 848.4 728.1 (109.4 ) 1,508.4 Total liabilities 48,480.6 36,478.7 20,172.4 (89,267.6 ) 15,864.1 CBI stockholders’ equity 11,377.5 10,572.0 20,651.2 (31,223.2 ) 11,377.5 Noncontrolling interests — — 313.5 — 313.5 Total stockholders’ equity 11,377.5 10,572.0 20,964.7 (31,223.2 ) 11,691.0 Total liabilities and stockholders’ equity $ 59,858.1 $ 47,050.7 $ 41,137.1 $ (120,490.8 ) $ 27,555.1 Parent Company Subsidiary Guarantors Subsidiary Nonguarantors Eliminations Consolidated (in millions) Condensed Consolidating Balance Sheet at February 28, 2019 Current assets: Cash and cash equivalents $ 11.0 $ 2.6 $ 80.0 $ — $ 93.6 Accounts receivable 435.6 370.6 40.7 — 846.9 Inventories 197.7 1,485.4 609.9 (162.6 ) 2,130.4 Intercompany receivable 29,712.5 33,775.4 20,050.6 (83,538.5 ) — Prepaid expenses and other 89.9 78.1 446.7 (1.6 ) 613.1 Total current assets 30,446.7 35,712.1 21,227.9 (83,702.7 ) 3,684.0 Property, plant, and equipment 85.3 786.8 4,395.2 — 5,267.3 Investments in subsidiaries 26,533.8 1,599.6 2,982.1 (31,115.5 ) — Goodwill — 6,185.5 1,903.3 — 8,088.8 Intangible assets — 605.0 2,593.1 — 3,198.1 Intercompany notes receivable 3,218.6 — 38.6 (3,257.2 ) — Equity method investments — 1.7 3,463.9 — 3,465.6 Securities measured at fair value — — 3,234.7 — 3,234.7 Deferred income taxes 69.2 — 2,183.3 (69.2 ) 2,183.3 Other assets 17.3 1.1 91.3 — 109.7 Total assets $ 60,370.9 $ 44,891.8 $ 42,113.4 $ (118,144.6 ) $ 29,231.5 Current liabilities: Short-term borrowings $ 732.5 $ — $ 59.0 $ — $ 791.5 Current maturities of long-term debt 1,052.8 12.2 0.2 — 1,065.2 Accounts payable 59.6 141.3 415.8 — 616.7 Intercompany payable 33,787.6 31,428.9 18,322.0 (83,538.5 ) — Other accrued expenses and liabilities 374.3 184.0 156.6 (24.5 ) 690.4 Total current liabilities 36,006.8 31,766.4 18,953.6 (83,563.0 ) 3,163.8 Long-term debt, less current maturities 11,743.4 16.0 0.4 — 11,759.8 Intercompany notes payable 38.5 2,694.4 524.3 (3,257.2 ) — Deferred income taxes and other liabilities 31.2 540.5 955.9 (56.9 ) 1,470.7 Total liabilities 47,819.9 35,017.3 20,434.2 (86,877.1 ) 16,394.3 CBI stockholders’ equity 12,551.0 9,874.5 21,393.0 (31,267.5 ) 12,551.0 Noncontrolling interests — — 286.2 — 286.2 Total stockholders’ equity 12,551.0 9,874.5 21,679.2 (31,267.5 ) 12,837.2 Total liabilities and stockholders’ equity $ 60,370.9 $ 44,891.8 $ 42,113.4 $ (118,144.6 ) $ 29,231.5 |
Condensed Consolidating Statement of Comprehensive Income (Loss) | Parent Company Subsidiary Guarantors Subsidiary Nonguarantors Eliminations Consolidated (in millions) Condensed Consolidating Statement of Comprehensive Income (Loss) for the Six Months Ended August 31, 2019 Sales $ 1,366.7 $ 4,126.1 $ 2,307.3 $ (2,944.2 ) $ 4,855.9 Excise taxes (168.4 ) (240.3 ) (6.0 ) — (414.7 ) Net sales 1,198.3 3,885.8 2,301.3 (2,944.2 ) 4,441.2 Cost of product sold (934.4 ) (3,057.4 ) (1,143.2 ) 2,908.4 (2,226.6 ) Gross profit 263.9 828.4 1,158.1 (35.8 ) 2,214.6 Selling, general, and administrative expenses (235.3 ) (535.8 ) (110.9 ) 9.6 (872.4 ) Operating income (loss) 28.6 292.6 1,047.2 (26.2 ) 1,342.2 Equity in earnings (losses) of equity method investees and subsidiaries and related activities (541.2 ) 5.3 (352.0 ) 299.3 (588.6 ) Unrealized net gain (loss) on securities measured at fair value — — (1,666.6 ) — (1,666.6 ) Net gain (loss) on sale of unconsolidated investment — — (0.1 ) — (0.1 ) Interest income 0.5 0.3 8.4 — 9.2 Intercompany interest income 109.2 185.7 170.8 (465.7 ) — Interest expense (233.9 ) (0.5 ) (1.0 ) — (235.4 ) Intercompany interest expense (219.1 ) (48.6 ) (198.0 ) 465.7 — Loss on extinguishment of debt (2.4 ) — — — (2.4 ) Income (loss) before income taxes (858.3 ) 434.8 (991.3 ) 273.1 (1,141.7 ) (Provision for) benefit from income taxes 87.7 (100.4 ) 396.1 4.2 387.6 Net income (loss) (770.6 ) 334.4 (595.2 ) 277.3 (754.1 ) Net income (loss) attributable to noncontrolling interests — — (16.5 ) — (16.5 ) Net income (loss) attributable to CBI $ (770.6 ) $ 334.4 $ (611.7 ) $ 277.3 $ (770.6 ) Comprehensive income (loss) attributable to CBI $ (893.3 ) $ 333.7 $ (742.5 ) $ 408.8 $ (893.3 ) Condensed Consolidating Statement of Comprehensive Income (Loss) for the Six Months Ended August 31, 2018 Sales $ 1,491.2 $ 3,993.9 $ 2,004.7 $ (2,734.1 ) $ 4,755.7 Excise taxes (179.7 ) (223.6 ) (6.2 ) — (409.5 ) Net sales 1,311.5 3,770.3 1,998.5 (2,734.1 ) 4,346.2 Cost of product sold (1,034.8 ) (2,820.2 ) (1,015.1 ) 2,740.7 (2,129.4 ) Gross profit 276.7 950.1 983.4 6.6 2,216.8 Selling, general, and administrative expenses (271.6 ) (452.1 ) (114.2 ) 11.5 (826.4 ) Operating income (loss) 5.1 498.0 869.2 18.1 1,390.4 Equity in earnings (losses) of equity method investees and subsidiaries and related activities 2,145.9 (26.0 ) 326.7 (2,444.0 ) 2.6 Unrealized net gain (loss) on securities measured at fair value — — 950.4 — 950.4 Net gain (loss) on sale of unconsolidated investment — — 99.8 — 99.8 Interest income 0.1 — 3.4 — 3.5 Intercompany interest income 135.3 321.5 2.4 (459.2 ) — Interest expense (164.6 ) (0.5 ) (14.2 ) — (179.3 ) Intercompany interest expense (271.0 ) (99.0 ) (89.2 ) 459.2 — Income (loss) before income taxes 1,850.8 694.0 2,148.5 (2,425.9 ) 2,267.4 (Provision for) benefit from income taxes 42.5 (167.9 ) (246.4 ) 2.0 (369.8 ) Net income (loss) 1,893.3 526.1 1,902.1 (2,423.9 ) 1,897.6 Net income (loss) attributable to noncontrolling interests — — (4.3 ) — (4.3 ) Net income (loss) attributable to CBI $ 1,893.3 $ 526.1 $ 1,897.8 $ (2,423.9 ) $ 1,893.3 Comprehensive income (loss) attributable to CBI $ 1,791.6 $ 525.5 $ 1,796.3 $ (2,321.8 ) $ 1,791.6 Parent Company Subsidiary Guarantors Subsidiary Nonguarantors Eliminations Consolidated (in millions) Condensed Consolidating Statement of Comprehensive Income (Loss) for the Three Months Ended August 31, 2019 Sales $ 737.5 $ 2,194.2 $ 1,121.4 $ (1,479.7 ) $ 2,573.4 Excise taxes (91.5 ) (134.9 ) (3.0 ) — (229.4 ) Net sales 646.0 2,059.3 1,118.4 (1,479.7 ) 2,344.0 Cost of product sold (513.8 ) (1,606.7 ) (557.1 ) 1,519.5 (1,158.1 ) Gross profit 132.2 452.6 561.3 39.8 1,185.9 Selling, general, and administrative expenses (122.2 ) (272.1 ) (77.0 ) 4.9 (466.4 ) Operating income (loss) 10.0 180.5 484.3 44.7 719.5 Equity in earnings (losses) of equity method investees and subsidiaries and related activities (401.9 ) 0.2 (350.7 ) 266.8 (485.6 ) Unrealized net gain (loss) on securities measured at fair value — — (839.1 ) — (839.1 ) Interest income 0.5 0.3 4.1 — 4.9 Intercompany interest income 70.3 94.8 168.8 (333.9 ) — Interest expense (115.9 ) (0.2 ) (0.4 ) — (116.5 ) Intercompany interest expense (130.5 ) (22.2 ) (181.2 ) 333.9 — Loss on extinguishment of debt (2.4 ) — — — (2.4 ) Income (loss) before income taxes (569.9 ) 253.4 (714.2 ) 311.5 (719.2 ) (Provision for) benefit from income taxes 44.7 (60.1 ) 226.4 (8.8 ) 202.2 Net income (loss) (525.2 ) 193.3 (487.8 ) 302.7 (517.0 ) Net income (loss) attributable to noncontrolling interests — — (8.2 ) — (8.2 ) Net income (loss) attributable to CBI $ (525.2 ) $ 193.3 $ (496.0 ) $ 302.7 $ (525.2 ) Comprehensive income (loss) attributable to CBI $ (646.3 ) $ 192.9 $ (616.2 ) $ 423.3 $ (646.3 ) Condensed Consolidating Statement of Comprehensive Income (Loss) for the Three Months Ended August 31, 2018 Sales $ 808.6 $ 2,112.7 $ 997.1 $ (1,392.7 ) $ 2,525.7 Excise taxes (100.9 ) (122.7 ) (3.0 ) — (226.6 ) Net sales 707.7 1,990.0 994.1 (1,392.7 ) 2,299.1 Cost of product sold (548.0 ) (1,498.1 ) (516.8 ) 1,432.0 (1,130.9 ) Gross profit 159.7 491.9 477.3 39.3 1,168.2 Selling, general, and administrative expenses (130.3 ) (213.4 ) (64.7 ) 5.2 (403.2 ) Operating income (loss) 29.4 278.5 412.6 44.5 765.0 Equity in earnings (losses) of equity method investees and subsidiaries and related activities 1,235.3 (13.5 ) 179.5 (1,403.4 ) (2.1 ) Unrealized net gain (loss) on securities measured at fair value — — 692.1 — 692.1 Net gain (loss) on sale of unconsolidated investment — — (1.6 ) — (1.6 ) Interest income 0.1 — 3.0 — 3.1 Intercompany interest income 67.7 162.7 1.5 (231.9 ) — Interest expense (84.3 ) (0.2 ) (6.6 ) — (91.1 ) Intercompany interest expense (137.4 ) (49.5 ) (45.0 ) 231.9 — Income (loss) before income taxes 1,110.8 378.0 1,235.5 (1,358.9 ) 1,365.4 (Provision for) benefit from income taxes 38.7 (91.0 ) (150.3 ) (11.5 ) (214.1 ) Net income (loss) 1,149.5 287.0 1,085.2 (1,370.4 ) 1,151.3 Net income (loss) attributable to noncontrolling interests — — (1.8 ) — (1.8 ) Net income (loss) attributable to CBI $ 1,149.5 $ 287.0 $ 1,083.4 $ (1,370.4 ) $ 1,149.5 Comprehensive income (loss) attributable to CBI $ 1,223.5 $ 287.0 $ 1,158.1 $ (1,445.1 ) $ 1,223.5 |
Condensed Consolidating Statement of Cash Flows | Parent Company Subsidiary Guarantors Subsidiary Nonguarantors Eliminations Consolidated (in millions) Condensed Consolidating Statement of Cash Flows for the Six Months Ended August 31, 2019 Net cash provided by (used in) operating activities $ 430.0 $ 9.8 $ 1,062.8 $ (83.2 ) $ 1,419.4 Cash flows from investing activities: Purchases of property, plant, and equipment (24.9 ) (34.8 ) (295.5 ) — (355.2 ) Purchases of businesses, net of cash acquired — — (36.2 ) — (36.2 ) Investments in equity method investees and securities — — (33.0 ) — (33.0 ) Net proceeds from (repayments of) intercompany notes (309.2 ) — — 309.2 — Net contributions from (investment in) equity affiliates (85.4 ) — — 85.4 — Other investing activities 0.2 0.1 (1.6 ) — (1.3 ) Net cash provided by (used in) investing activities (419.3 ) (34.7 ) (366.3 ) 394.6 (425.7 ) Cash flows from financing activities: Dividends paid to parent company — — (109.7 ) 109.7 — Net contributions from (investment in) equity affiliates — — 111.9 (111.9 ) — Net proceeds from (repayments of) intercompany notes 901.4 47.5 (639.7 ) (309.2 ) — Principal payments of long-term debt (1,318.8 ) (7.6 ) (5.1 ) — (1,331.5 ) Net proceeds from (repayments of) short-term borrowings (581.5 ) — (59.0 ) — (640.5 ) Dividends paid (285.0 ) — — — (285.0 ) Purchases of treasury stock (50.0 ) — — — (50.0 ) Payments of minimum tax withholdings on stock-based payment awards — (13.7 ) (0.5 ) — (14.2 ) Payments of debt issuance costs (8.0 ) — — — (8.0 ) Proceeds from issuance of long-term debt 1,291.3 — — — 1,291.3 Proceeds from shares issued under equity compensation plans 32.9 — — — 32.9 Net cash provided by (used in) financing activities (17.7 ) 26.2 (702.1 ) (311.4 ) (1,005.0 ) Effect of exchange rate changes on cash and cash equivalents — — (1.0 ) — (1.0 ) Net increase (decrease) in cash and cash equivalents (7.0 ) 1.3 (6.6 ) — (12.3 ) Cash and cash equivalents, beginning of period 11.0 2.6 80.0 — 93.6 Cash and cash equivalents, end of period $ 4.0 $ 3.9 $ 73.4 $ — $ 81.3 Parent Company Subsidiary Guarantors Subsidiary Nonguarantors Eliminations Consolidated (in millions) Condensed Consolidating Statement of Cash Flows for the Six Months Ended August 31, 2018 Net cash provided by (used in) operating activities $ (84.4 ) $ 778.1 $ 644.8 $ — $ 1,338.5 Cash flows from investing activities: Purchases of property, plant, and equipment (15.5 ) (58.2 ) (296.9 ) — (370.6 ) Purchases of businesses, net of cash acquired — (19.5 ) (0.7 ) — (20.2 ) Investments in equity method investees and securities — — (152.1 ) — (152.1 ) Proceeds from sale of unconsolidated investment — — 110.2 — 110.2 Proceeds from sales of assets 0.3 38.3 6.1 — 44.7 Net proceeds from (repayments of) intercompany notes 456.5 — — (456.5 ) — Net contributions from (investment in) equity affiliates (15.8 ) (11.1 ) — 26.9 — Other investing activities — — (0.8 ) — (0.8 ) Net cash provided by (used in) investing activities 425.5 (50.5 ) (334.2 ) (429.6 ) (388.8 ) Cash flows from financing activities: Dividends paid to parent company — — (29.5 ) 29.5 — Net contributions from (investment in) equity affiliates — 32.7 23.7 (56.4 ) — Net proceeds from (repayments of) intercompany notes 57.6 (740.3 ) 226.2 456.5 — Principal payments of long-term debt (4.5 ) (8.5 ) (10.5 ) — (23.5 ) Net proceeds from (repayments of) short-term borrowings 381.7 — (414.1 ) — (32.4 ) Dividends paid (279.1 ) — — — (279.1 ) Purchases of treasury stock (504.3 ) — — — (504.3 ) Payments of minimum tax withholdings on stock-based payment awards — (12.7 ) (0.8 ) — (13.5 ) Payments of debt issuance costs (13.6 ) — — — (13.6 ) Proceeds from issuance of long-term debt — — 12.0 — 12.0 Proceeds from shares issued under equity compensation plans 21.5 — — — 21.5 Net cash provided by (used in) financing activities (340.7 ) (728.8 ) (193.0 ) 429.6 (832.9 ) Effect of exchange rate changes on cash and cash equivalents — — (1.0 ) — (1.0 ) Net increase (decrease) in cash and cash equivalents 0.4 (1.2 ) 116.6 — 115.8 Cash and cash equivalents, beginning of period 4.6 4.4 81.3 — 90.3 Cash and cash equivalents, end of period $ 5.0 $ 3.2 $ 197.9 $ — $ 206.1 |
Business Segment Information (T
Business Segment Information (Tables) | 6 Months Ended |
Aug. 31, 2019 | |
Segment Reporting [Abstract] | |
Comparable adjustments | Comparable Adjustments that impacted comparability in our segment operating income (loss) for each period are as follows: For the Six Months Ended August 31, For the Three Months Ended August 31, 2019 2018 2019 2018 (in millions) Cost of product sold Strategic business development costs $ (62.5 ) $ — $ (18.0 ) $ — Settlements of undesignated commodity derivative contracts (48.4 ) (5.1 ) (18.4 ) (3.6 ) Accelerated depreciation (5.3 ) (5.0 ) (1.8 ) (1.6 ) Flow through of inventory step-up (1.2 ) (1.4 ) (0.8 ) (0.8 ) Net gain (loss) on undesignated commodity derivative contracts 26.8 9.6 10.9 (5.8 ) Recovery of (loss on) inventory write-down 8.6 (1.5 ) 8.6 — Total cost of product sold (82.0 ) (3.4 ) (19.5 ) (11.8 ) Selling, general, and administrative expenses Net gain (loss) on foreign currency derivative contracts associated with acquisition of investment — (7.1 ) — (7.1 ) Restructuring and other strategic business development costs (50.1 ) (8.6 ) (26.5 ) (4.3 ) Transaction, integration, and other acquisition-related costs (5.5 ) (1.0 ) (3.2 ) (1.0 ) Impairment of intangible assets (11.0 ) — (11.0 ) — Deferred compensation — (16.3 ) — — Other gains (losses) (1) 1.1 8.5 (12.3 ) 8.5 Total selling, general, and administrative expenses (65.5 ) (24.5 ) (53.0 ) (3.9 ) Comparable Adjustments, Operating income (loss) $ (147.5 ) $ (27.9 ) $ (72.5 ) $ (15.7 ) (1) Includes a gain of $11.8 million for the six months ended August 31, 2019 , in connection with the increase in our ownership interest in Nelson’s Green Brier and a loss of $11.4 million and $13.3 million for the six months and three months ended August 31, 2019 , respectively, in connection with an increase in estimated fair value of a contingent liability associated with a prior period acquisition. |
Segment information | Segment information is as follows: For the Six Months Ended August 31, For the Three Months Ended August 31, 2019 2018 2019 2018 (in millions) Beer Net sales $ 3,117.8 $ 2,902.2 $ 1,640.4 $ 1,527.1 Segment operating income (loss) $ 1,265.9 $ 1,150.6 $ 685.3 $ 630.6 Capital expenditures $ 272.8 $ 296.3 $ 170.7 $ 159.8 Depreciation and amortization $ 106.2 $ 100.5 $ 51.9 $ 51.0 Wine and Spirits Net sales: Wine $ 1,146.1 $ 1,262.8 $ 611.1 $ 671.0 Spirits 177.3 181.2 92.5 101.0 Net sales $ 1,323.4 $ 1,444.0 $ 703.6 $ 772.0 Segment operating income (loss) $ 321.2 $ 369.2 $ 160.4 $ 201.4 Income (loss) from unconsolidated investments $ 3.0 $ 3.8 $ (1.0 ) $ (1.0 ) Equity method investments $ 76.8 $ 79.1 $ 76.8 $ 79.1 Capital expenditures $ 43.1 $ 58.8 $ 16.2 $ 31.0 Depreciation and amortization $ 50.0 $ 49.2 $ 25.0 $ 24.8 Corporate Operations and Other Segment operating income (loss) $ (97.4 ) $ (101.5 ) $ (53.7 ) $ (51.3 ) Income (loss) from unconsolidated investments $ (1.3 ) $ (1.2 ) $ (0.2 ) $ (1.1 ) Equity method investments $ 81.0 $ 41.2 $ 81.0 $ 41.2 Capital expenditures $ 39.3 $ 15.5 $ 12.6 $ 11.6 Depreciation and amortization $ 10.5 $ 17.1 $ 5.2 $ 8.7 Canopy Net sales $ 138.4 NA $ 67.7 NA Segment operating income (loss) $ (330.5 ) NA $ (160.5 ) NA Capital expenditures $ 270.6 NA $ 158.4 NA Depreciation and amortization $ 35.0 NA $ 17.4 NA Consolidation and Eliminations Net sales $ (138.4 ) $ — $ (67.7 ) $ — Operating income (loss) $ 330.5 $ — $ 160.5 $ — Income (loss) from unconsolidated investments $ (109.1 ) $ — $ (54.7 ) $ — Equity method investments $ 2,846.0 $ — $ 2,846.0 $ — Capital expenditures $ (270.6 ) $ — $ (158.4 ) $ — Depreciation and amortization $ (35.0 ) $ — $ (17.4 ) $ — For the Six Months Ended August 31, For the Three Months Ended August 31, 2019 2018 2019 2018 (in millions) Comparable Adjustments Operating income (loss) $ (147.5 ) $ (27.9 ) $ (72.5 ) $ (15.7 ) Income (loss) from unconsolidated investments $ (2,147.9 ) $ 1,050.2 $ (1,268.8 ) $ 690.5 Depreciation and amortization $ 5.3 $ 5.0 $ 1.8 $ 1.6 Consolidated Net sales $ 4,441.2 $ 4,346.2 $ 2,344.0 $ 2,299.1 Operating income (loss) $ 1,342.2 $ 1,390.4 $ 719.5 $ 765.0 Income (loss) from unconsolidated investments (1) $ (2,255.3 ) $ 1,052.8 $ (1,324.7 ) $ 688.4 Equity method investments $ 3,003.8 $ 120.3 $ 3,003.8 $ 120.3 Capital expenditures $ 355.2 $ 370.6 $ 199.5 $ 202.4 Depreciation and amortization $ 172.0 $ 171.8 $ 83.9 $ 86.1 (1) Income (loss) from unconsolidated investments consists of: For the Six Months Ended For the Three Months Ended August 31, August 31, August 31, August 31, (in millions) Unrealized net gain (loss) on securities measured at fair value $ (1,666.6 ) $ 950.4 $ (839.1 ) $ 692.1 Net gain (loss) on sale of unconsolidated investment (i) (0.1 ) 99.8 — (1.6 ) Equity in earnings (losses) of equity method investees and related activities (ii) (588.6 ) 2.6 (485.6 ) (2.1 ) $ (2,255.3 ) $ 1,052.8 $ (1,324.7 ) $ 688.4 (i) In May 2018, we completed the sale of our remaining interest in our previously-owned Australian and European business (the “Accolade Wine Investment”) for A$149.1 million, or $113.6 million, subject to closing adjustments. We received cash proceeds, net of direct costs to sell, of $110.2 million and a note receivable of $3.4 million. This interest consisted of an investment accounted for under the cost method and available-for-sale debt securities. (ii) Includes the June 2019 Warrant Modification Loss. |
Accounting Guidance (Details)
Accounting Guidance (Details) - USD ($) $ in Millions | Aug. 31, 2019 | Mar. 01, 2019 | Feb. 28, 2019 |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||
Operating lease right-of-use asset | $ 552.8 | $ 0 | |
Operating lease liability | $ 588.6 | ||
Accounting Standards Update 2016-02, Leases [Member] | |||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||
Operating lease right-of-use asset | $ 585.4 | ||
Operating lease liability | $ 619.7 |
Inventories (Details)
Inventories (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | |||
Aug. 31, 2019 | Aug. 31, 2018 | Aug. 31, 2019 | Aug. 31, 2018 | Feb. 28, 2019 | |
Inventory Disclosure [Abstract] | |||||
Raw materials and supplies | $ 147 | $ 147 | $ 182.6 | ||
In-process inventories | 792.2 | 792.2 | 1,480.5 | ||
Finished case goods | 372.2 | 372.2 | 467.3 | ||
Inventories, Total | 1,311.4 | 1,311.4 | $ 2,130.4 | ||
Amounts purchased under related party arrangements | $ 37.9 | $ 54.7 | $ 126.4 | $ 123.7 |
Wine and Spirits Transformati_3
Wine and Spirits Transformation (Details) $ in Millions, $ in Millions | Oct. 03, 2019USD ($) | Aug. 31, 2019USD ($) | Feb. 28, 2019USD ($) | Aug. 31, 2018USD ($) | Aug. 31, 2018AUD ($) |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||||
Assets held for sale - current | $ 666 | $ 0 | |||
Assets held for sale | 1,019.1 | $ 0 | |||
Transaction value of divestiture | $ 113.6 | $ 149.1 | |||
Wine and Spirits Transaction [Member] | Disposal Group, Not Discontinued Operations [Member] | Subsequent Event [Member] | |||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||||
Transaction value of divestiture | $ 1,700 | ||||
Black Velvet Transaction [Member] | Disposal Group, Not Discontinued Operations [Member] | Subsequent Event [Member] | |||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||||
Transaction value of divestiture | 266 | ||||
Black Velvet Transaction [Member] | Disposal Group, Not Discontinued Operations [Member] | Subsequent Event [Member] | Minimum [Member] | |||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||||
Gain on divestiture | 70 | ||||
Black Velvet Transaction [Member] | Disposal Group, Not Discontinued Operations [Member] | Subsequent Event [Member] | Maximum [Member] | |||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||||
Gain on divestiture | 80 | ||||
Operating Segments [Member] | Wine and Spirits [Member] | Disposal Group, Not Discontinued Operations [Member] | |||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||||
Inventories | 657 | ||||
Prepaid expenses and other | 9 | ||||
Assets held for sale - current | 666 | ||||
Property, plant, and equipment | 194 | ||||
Goodwill | 415.8 | ||||
Intangible assets | 407 | ||||
Equity method investments | 1.1 | ||||
Other assets | 1.2 | ||||
Assets held for sale | 1,019.1 | ||||
Accounts payable | 4.7 | ||||
Other accrued expenses and liabilities | 32.7 | ||||
Deferred income taxes and other liabilities | 2.2 | ||||
Liabilities held for sale | 39.6 | ||||
Net assets held for sale | 1,645.5 | ||||
Operating Segments [Member] | Wine and Spirits [Member] | Wine and Spirits Transaction [Member] | Disposal Group, Not Discontinued Operations [Member] | |||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||||
Inventories | 593.7 | ||||
Prepaid expenses and other | 9 | ||||
Assets held for sale - current | 602.7 | ||||
Property, plant, and equipment | 175.8 | ||||
Goodwill | 353.2 | ||||
Intangible assets | 347.2 | ||||
Equity method investments | 1.1 | ||||
Other assets | 0.3 | ||||
Assets held for sale | 877.6 | ||||
Accounts payable | 4.7 | ||||
Other accrued expenses and liabilities | 31.1 | ||||
Deferred income taxes and other liabilities | 0.1 | ||||
Liabilities held for sale | 35.9 | ||||
Net assets held for sale | 1,444.4 | ||||
Impairment of long-lived assets held for sale | 27 | ||||
Operating Segments [Member] | Wine and Spirits [Member] | Wine and Spirits Transaction [Member] | Disposal Group, Not Discontinued Operations [Member] | Subsequent Event [Member] | |||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||||
Impairment of long-lived assets held for sale | $ 300 | ||||
Operating Segments [Member] | Wine and Spirits [Member] | Black Velvet Transaction [Member] | Disposal Group, Not Discontinued Operations [Member] | |||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||||
Inventories | 63.3 | ||||
Prepaid expenses and other | 0 | ||||
Assets held for sale - current | 63.3 | ||||
Property, plant, and equipment | 18.2 | ||||
Goodwill | 62.6 | ||||
Intangible assets | 59.8 | ||||
Equity method investments | 0 | ||||
Other assets | 0.9 | ||||
Assets held for sale | 141.5 | ||||
Accounts payable | 0 | ||||
Other accrued expenses and liabilities | 1.6 | ||||
Deferred income taxes and other liabilities | 2.1 | ||||
Liabilities held for sale | 3.7 | ||||
Net assets held for sale | $ 201.1 |
Wine and Spirits Transformati_4
Wine and Spirits Transformation (Details 1) - Operating Segments [Member] - Wine and Spirits [Member] - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended |
Aug. 31, 2019 | Aug. 31, 2019 | |
Restructuring Cost and Reserve [Line Items] | ||
Restructuring charges | $ 45.2 | $ 106.4 |
Cost of product sold [Member] | Loss on inventory write-downs [Member] | ||
Restructuring Cost and Reserve [Line Items] | ||
Restructuring charges | 13.7 | 40.9 |
Cost of product sold [Member] | Contract termination costs [Member] | ||
Restructuring Cost and Reserve [Line Items] | ||
Restructuring charges | 4.3 | 20.1 |
Selling, general, and administrative expenses [Member] | Employee termination costs [Member] | ||
Restructuring Cost and Reserve [Line Items] | ||
Restructuring charges | 0.2 | 12.1 |
Selling, general, and administrative expenses [Member] | Impairment of long-lived [Member] | ||
Restructuring Cost and Reserve [Line Items] | ||
Restructuring charges | 27 | 27 |
Selling, general, and administrative expenses [Member] | Other costs [Member] | ||
Restructuring Cost and Reserve [Line Items] | ||
Restructuring charges | $ 0 | $ 6.3 |
Derivative Instruments (Details
Derivative Instruments (Details) - USD ($) $ in Millions | Aug. 31, 2019 | Jun. 30, 2019 | Feb. 28, 2019 |
Designated as hedging instrument [Member] | Foreign currency contracts [Member] | |||
Derivative [Line Items] | |||
Aggregate notional value of derivative instruments | $ 1,959.9 | $ 1,579.3 | |
Designated as hedging instrument [Member] | Interest rate swap contracts [Member] | |||
Derivative [Line Items] | |||
Aggregate notional value of derivative instruments | 375 | $ 375 | 0 |
Not designated as hedging instrument [Member] | Foreign currency contracts [Member] | |||
Derivative [Line Items] | |||
Aggregate notional value of derivative instruments | 781.2 | 460.3 | |
Not designated as hedging instrument [Member] | Commodity derivative contracts [Member] | |||
Derivative [Line Items] | |||
Aggregate notional value of derivative instruments | $ 265.1 | $ 284.7 |
Derivative Instruments (Detai_2
Derivative Instruments (Details 1) - USD ($) $ in Millions | Aug. 31, 2019 | Feb. 28, 2019 |
Designated as hedging instrument [Member] | Foreign currency contracts [Member] | Prepaid expenses and other [Member] | ||
Fair value and location of our derivative instruments on our balance sheets | ||
Foreign currency contracts, Assets | $ 9.6 | $ 14.1 |
Designated as hedging instrument [Member] | Foreign currency contracts [Member] | Other accrued expenses and liabilities | ||
Fair value and location of our derivative instruments on our balance sheets | ||
Foreign currency contracts, Liabilities | 24 | 8.8 |
Designated as hedging instrument [Member] | Foreign currency contracts [Member] | Other assets | ||
Fair value and location of our derivative instruments on our balance sheets | ||
Foreign currency contracts, Assets | 11.6 | 22.1 |
Designated as hedging instrument [Member] | Foreign currency contracts [Member] | Deferred income taxes and other liabilities | ||
Fair value and location of our derivative instruments on our balance sheets | ||
Foreign currency contracts, Liabilities | 18.6 | 6.3 |
Designated as hedging instrument [Member] | Interest rate swap contracts [Member] | Prepaid expenses and other [Member] | ||
Fair value and location of our derivative instruments on our balance sheets | ||
Interest rate swap contracts, Assets | 0.1 | 0 |
Designated as hedging instrument [Member] | Interest rate swap contracts [Member] | Other accrued expenses and liabilities | ||
Fair value and location of our derivative instruments on our balance sheets | ||
Interest rate swap contracts, Liabilities | 0.8 | 0 |
Not designated as hedging instrument [Member] | Foreign currency contracts [Member] | Prepaid expenses and other [Member] | ||
Fair value and location of our derivative instruments on our balance sheets | ||
Foreign currency contracts, Assets | 4.5 | 2 |
Not designated as hedging instrument [Member] | Foreign currency contracts [Member] | Other accrued expenses and liabilities | ||
Fair value and location of our derivative instruments on our balance sheets | ||
Foreign currency contracts, Liabilities | 11 | 0.6 |
Not designated as hedging instrument [Member] | Commodity derivative contracts [Member] | Prepaid expenses and other [Member] | ||
Fair value and location of our derivative instruments on our balance sheets | ||
Commodity derivative contracts, Assets | 1.2 | 6.1 |
Not designated as hedging instrument [Member] | Commodity derivative contracts [Member] | Other accrued expenses and liabilities | ||
Fair value and location of our derivative instruments on our balance sheets | ||
Commodity derivative contracts, Liabilities | 15.6 | 6.1 |
Not designated as hedging instrument [Member] | Commodity derivative contracts [Member] | Other assets | ||
Fair value and location of our derivative instruments on our balance sheets | ||
Commodity derivative contracts, Assets | 0.3 | 2.6 |
Not designated as hedging instrument [Member] | Commodity derivative contracts [Member] | Deferred income taxes and other liabilities | ||
Fair value and location of our derivative instruments on our balance sheets | ||
Commodity derivative contracts, Liabilities | $ 10.7 | $ 5.5 |
Derivative Instruments (Detai_3
Derivative Instruments (Details 2) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Aug. 31, 2019 | Aug. 31, 2018 | Aug. 31, 2019 | Aug. 31, 2018 | |
Effect of our undesignated derivative instruments on our results of operations | ||||
Net Gain (Loss) Recognized in Income (Loss) | $ (16) | $ (29.3) | $ (35.7) | $ (15.8) |
Foreign currency contracts [Member] | Selling, general, and administrative expenses [Member] | ||||
Effect of our undesignated derivative instruments on our results of operations | ||||
Net Gain (Loss) Recognized in Income (Loss) | (5.1) | (26.2) | (8.9) | (28.1) |
Interest rate swap contracts [Member] | Interest expense [Member] | ||||
Effect of our undesignated derivative instruments on our results of operations | ||||
Net Gain (Loss) Recognized in Income (Loss) | 2.7 | 2.7 | ||
Commodity derivative contracts [Member] | Cost of product sold [Member] | ||||
Effect of our undesignated derivative instruments on our results of operations | ||||
Net Gain (Loss) Recognized in Income (Loss) | (10.9) | (5.8) | (26.8) | 9.6 |
Cash flow hedging [Member] | ||||
Effect of our derivative instruments designated in cash flow hedging relationships on our results of operations, net of income tax effect | ||||
Net Gain (Loss) Recognized in OCI | (33.8) | 37.9 | (36.2) | (7) |
Net Gain (Loss) Reclassified from AOCI to Income (Loss) | 4.2 | 0.6 | 7.8 | 4.8 |
Cash flow hedging [Member] | Foreign currency contracts [Member] | ||||
Effect of our derivative instruments designated in cash flow hedging relationships on our results of operations, net of income tax effect | ||||
Net Gain (Loss) Recognized in OCI | (33.2) | 37.9 | (35.6) | (7) |
Cash flow hedging [Member] | Foreign currency contracts [Member] | Sales [Member] | ||||
Effect of our derivative instruments designated in cash flow hedging relationships on our results of operations, net of income tax effect | ||||
Net Gain (Loss) Reclassified from AOCI to Income (Loss) | 0 | 0 | 0 | 0.1 |
Cash flow hedging [Member] | Foreign currency contracts [Member] | Cost of product sold [Member] | ||||
Effect of our derivative instruments designated in cash flow hedging relationships on our results of operations, net of income tax effect | ||||
Net Gain (Loss) Reclassified from AOCI to Income (Loss) | 4.2 | $ 0.6 | 7.8 | $ 4.7 |
Cash flow hedging [Member] | Interest rate swap contracts [Member] | ||||
Effect of our derivative instruments designated in cash flow hedging relationships on our results of operations, net of income tax effect | ||||
Net Gain (Loss) Recognized in OCI | (0.6) | (0.6) | ||
Cash flow hedging [Member] | Interest rate swap contracts [Member] | Interest expense [Member] | ||||
Effect of our derivative instruments designated in cash flow hedging relationships on our results of operations, net of income tax effect | ||||
Net Gain (Loss) Reclassified from AOCI to Income (Loss) | $ 0 | $ 0 |
Derivative Instruments (Detai_4
Derivative Instruments (Details Textual) $ in Millions | 6 Months Ended |
Aug. 31, 2019USD ($) | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Fair value of derivative instruments in a net liability position due to counterparties | $ 53.4 |
Amount of net gains (losses), net of income tax effect, to be reclassified from AOCI to earnings within the next 12 months | $ (6.8) |
Fair Value of Financial Instr_3
Fair Value of Financial Instruments (Details) - Significant Other Observable Inputs (Level 2) [Member] | Aug. 31, 2019$ / shares | Feb. 28, 2019$ / shares | Jun. 27, 2019$ / shares |
Warrant [Member] | New Tranche A Warrants [Member] | Issue date exercise price [Member] | |||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |||
Warrants outstanding, measurement input, C$ per share | $ 50.40 | $ 50.40 | |
Warrant [Member] | New Tranche A Warrants [Member] | Valuation date stock price [Member] | |||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |||
Warrants outstanding, measurement input, C$ per share | $ 31.46 | $ 53.36 | |
Warrant [Member] | New Tranche A Warrants [Member] | Expected life (in years) [Member] | |||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |||
Warrants outstanding, term | 4 years 2 months 12 days | 4 years 3 months 18 days | |
Warrant [Member] | New Tranche A Warrants [Member] | Expected volatility [Member] | |||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |||
Warrants outstanding, measurement input, decimal | 0.650 | 0.667 | |
Warrant [Member] | New Tranche A Warrants [Member] | Risk-free interest rate [Member] | |||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |||
Warrants outstanding, measurement input, decimal | 0.012 | 0.014 | |
Warrant [Member] | New Tranche A Warrants [Member] | Expected dividend yield [Member] | |||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |||
Warrants outstanding, measurement input, decimal | 0 | 0 | |
Warrant [Member] | New Tranche B Warrants [Member] | Issue date exercise price [Member] | |||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |||
Warrants outstanding, measurement input, C$ per share | $ 76.68 | $ 76.68 | |
Warrant [Member] | New Tranche B Warrants [Member] | Valuation date stock price [Member] | |||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |||
Warrants outstanding, measurement input, C$ per share | $ 31.46 | $ 53.36 | |
Warrant [Member] | New Tranche B Warrants [Member] | Expected life (in years) [Member] | |||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |||
Warrants outstanding, term | 7 years 2 months 12 days | 7 years 3 months 18 days | |
Warrant [Member] | New Tranche B Warrants [Member] | Expected volatility [Member] | |||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |||
Warrants outstanding, measurement input, decimal | 0.650 | 0.667 | |
Warrant [Member] | New Tranche B Warrants [Member] | Risk-free interest rate [Member] | |||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |||
Warrants outstanding, measurement input, decimal | 0.012 | 0.014 | |
Warrant [Member] | New Tranche B Warrants [Member] | Expected dividend yield [Member] | |||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |||
Warrants outstanding, measurement input, decimal | 0 | 0 | |
Warrant [Member] | November 2017 Canopy Warrants [Member] | Issue date exercise price [Member] | |||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |||
Warrants outstanding, measurement input, C$ per share | $ 12.98 | $ 12.98 | |
Warrant [Member] | November 2017 Canopy Warrants [Member] | Valuation date stock price [Member] | |||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |||
Warrants outstanding, measurement input, C$ per share | $ 31.46 | $ 62.38 | |
Warrant [Member] | November 2017 Canopy Warrants [Member] | Expected life (in years) [Member] | |||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |||
Warrants outstanding, term | 8 months 12 days | 1 year 2 months 12 days | |
Warrant [Member] | November 2017 Canopy Warrants [Member] | Expected volatility [Member] | |||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |||
Warrants outstanding, measurement input, decimal | 0.696 | 0.878 | |
Warrant [Member] | November 2017 Canopy Warrants [Member] | Risk-free interest rate [Member] | |||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |||
Warrants outstanding, measurement input, decimal | 0.016 | 0.018 | |
Warrant [Member] | November 2017 Canopy Warrants [Member] | Expected dividend yield [Member] | |||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |||
Warrants outstanding, measurement input, decimal | 0 | 0 | |
Warrant [Member] | November 2018 Canopy Warrants [Member] | Issue date exercise price [Member] | |||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |||
Warrants outstanding, measurement input, C$ per share | $ 50.40 | ||
Warrant [Member] | November 2018 Canopy Warrants [Member] | Valuation date stock price [Member] | |||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |||
Warrants outstanding, measurement input, C$ per share | $ 62.38 | ||
Warrant [Member] | November 2018 Canopy Warrants [Member] | Expected life (in years) [Member] | |||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |||
Warrants outstanding, term | 2 years 8 months 12 days | ||
Warrant [Member] | November 2018 Canopy Warrants [Member] | Expected volatility [Member] | |||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |||
Warrants outstanding, measurement input, decimal | 0.793 | ||
Warrant [Member] | November 2018 Canopy Warrants [Member] | Risk-free interest rate [Member] | |||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |||
Warrants outstanding, measurement input, decimal | 0.018 | ||
Warrant [Member] | November 2018 Canopy Warrants [Member] | Expected dividend yield [Member] | |||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |||
Warrants outstanding, measurement input, decimal | 0 | ||
Convertible debt securities [Member] | Valuation date stock price [Member] | |||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |||
Debt instrument, measurement input, C$ per share | $ 31.46 | $ 62.38 | |
Convertible debt securities [Member] | Expected life (in years) [Member] | |||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |||
Debt securities, term | 3 years 10 months 24 days | 4 years 4 months 24 days | |
Convertible debt securities [Member] | Expected volatility [Member] | |||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |||
Debt Instrument, measurement input, decimal | 0.490 | 0.459 | |
Convertible debt securities [Member] | Risk-free interest rate [Member] | |||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |||
Debt Instrument, measurement input, decimal | 0.013 | 0.018 | |
Convertible debt securities [Member] | Expected dividend yield [Member] | |||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |||
Debt Instrument, measurement input, decimal | 0 | 0 | |
Convertible debt securities [Member] | Conversion price [Member] | |||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |||
Debt instrument, measurement input, C$ per share | $ 48.17 | $ 48.17 |
Fair Value of Financial Instr_4
Fair Value of Financial Instruments (Details 1) - USD ($) $ in Millions | Jun. 27, 2019 | Aug. 31, 2019 | Aug. 31, 2018 | Aug. 31, 2019 | Aug. 31, 2018 | Feb. 28, 2019 |
Fair Value, Net Asset (Liability) [Abstract] | ||||||
Debt securities | $ 1,572.2 | $ 1,572.2 | $ 3,234.7 | |||
Debt and Equity Securities, Unrealized Gain (Loss), Excluding Other-than-temporary Impairment [Abstract] | ||||||
Unrealized net gain (loss) on securities measured at fair value | (839.1) | $ 692.1 | (1,666.6) | $ 950.4 | ||
Equity securities [Member] | November 2017 Canopy Investment [Member] | ||||||
Debt and Equity Securities, Unrealized Gain (Loss), Excluding Other-than-temporary Impairment [Abstract] | ||||||
Unrealized net gain (loss) on securities measured at fair value | 0 | 328.1 | 0 | 461 | ||
Warrant [Member] | November 2017 Canopy Warrants [Member] | ||||||
Debt and Equity Securities, Unrealized Gain (Loss), Excluding Other-than-temporary Impairment [Abstract] | ||||||
Unrealized net gain (loss) on securities measured at fair value | (316.7) | 310.5 | (450.8) | 435.9 | ||
Warrant [Member] | New November 2018 Canopy Warrants [Member] | ||||||
Debt and Equity Securities, Unrealized Gain (Loss), Excluding Other-than-temporary Impairment [Abstract] | ||||||
Unrealized net gain (loss) on securities measured at fair value | $ 1,176 | (473.6) | (1,134.4) | |||
Warrant [Member] | November 2018 Canopy Warrants [Member] | ||||||
Debt and Equity Securities, Unrealized Gain (Loss), Excluding Other-than-temporary Impairment [Abstract] | ||||||
Unrealized net gain (loss) on securities measured at fair value | 0 | 0 | ||||
Convertible debt securities [Member] | ||||||
Debt and Equity Securities, Unrealized Gain (Loss), Excluding Other-than-temporary Impairment [Abstract] | ||||||
Unrealized net gain (loss) on securities measured at fair value | (48.8) | $ 53.5 | (81.4) | $ 53.5 | ||
Recurring [Member] | Foreign currency contracts [Member] | ||||||
Fair Value, Net Asset (Liability) [Abstract] | ||||||
Derivative asset | 25.7 | 25.7 | 38.2 | |||
Derivative liability | 53.6 | 53.6 | 15.7 | |||
Recurring [Member] | Commodity derivative contracts [Member] | ||||||
Fair Value, Net Asset (Liability) [Abstract] | ||||||
Derivative asset | 1.5 | 1.5 | 8.7 | |||
Derivative liability | 26.3 | 26.3 | 11.6 | |||
Recurring [Member] | Interest rate swap contracts [Member] | ||||||
Fair Value, Net Asset (Liability) [Abstract] | ||||||
Derivative asset | 0.1 | 0.1 | ||||
Derivative liability | 0.8 | 0.8 | ||||
Recurring [Member] | Equity securities [Member] | ||||||
Fair Value, Net Asset (Liability) [Abstract] | ||||||
Equity securities | 1,438 | 1,438 | 3,023.2 | |||
Recurring [Member] | Convertible debt securities [Member] | ||||||
Fair Value, Net Asset (Liability) [Abstract] | ||||||
Debt securities | 134.2 | 134.2 | 211.5 | |||
Recurring [Member] | Quoted Prices in Active Markets (Level 1) [Member] | Foreign currency contracts [Member] | ||||||
Fair Value, Net Asset (Liability) [Abstract] | ||||||
Derivative asset | 0 | 0 | 0 | |||
Derivative liability | 0 | 0 | 0 | |||
Recurring [Member] | Quoted Prices in Active Markets (Level 1) [Member] | Commodity derivative contracts [Member] | ||||||
Fair Value, Net Asset (Liability) [Abstract] | ||||||
Derivative asset | 0 | 0 | 0 | |||
Derivative liability | 0 | 0 | 0 | |||
Recurring [Member] | Quoted Prices in Active Markets (Level 1) [Member] | Interest rate swap contracts [Member] | ||||||
Fair Value, Net Asset (Liability) [Abstract] | ||||||
Derivative asset | 0 | 0 | ||||
Derivative liability | 0 | 0 | ||||
Recurring [Member] | Quoted Prices in Active Markets (Level 1) [Member] | Equity securities [Member] | ||||||
Fair Value, Net Asset (Liability) [Abstract] | ||||||
Equity securities | 0 | 0 | 0 | |||
Recurring [Member] | Quoted Prices in Active Markets (Level 1) [Member] | Convertible debt securities [Member] | ||||||
Fair Value, Net Asset (Liability) [Abstract] | ||||||
Debt securities | 0 | 0 | 0 | |||
Recurring [Member] | Significant Other Observable Inputs (Level 2) [Member] | Foreign currency contracts [Member] | ||||||
Fair Value, Net Asset (Liability) [Abstract] | ||||||
Derivative asset | 25.7 | 25.7 | 38.2 | |||
Derivative liability | 53.6 | 53.6 | 15.7 | |||
Recurring [Member] | Significant Other Observable Inputs (Level 2) [Member] | Commodity derivative contracts [Member] | ||||||
Fair Value, Net Asset (Liability) [Abstract] | ||||||
Derivative asset | 1.5 | 1.5 | 8.7 | |||
Derivative liability | 26.3 | 26.3 | 11.6 | |||
Recurring [Member] | Significant Other Observable Inputs (Level 2) [Member] | Interest rate swap contracts [Member] | ||||||
Fair Value, Net Asset (Liability) [Abstract] | ||||||
Derivative asset | 0.1 | 0.1 | ||||
Derivative liability | 0.8 | 0.8 | ||||
Recurring [Member] | Significant Other Observable Inputs (Level 2) [Member] | Equity securities [Member] | ||||||
Fair Value, Net Asset (Liability) [Abstract] | ||||||
Equity securities | 1,438 | 1,438 | 3,023.2 | |||
Recurring [Member] | Significant Other Observable Inputs (Level 2) [Member] | Convertible debt securities [Member] | ||||||
Fair Value, Net Asset (Liability) [Abstract] | ||||||
Debt securities | 134.2 | 134.2 | 211.5 | |||
Recurring [Member] | Significant Unobservable Inputs (Level 3) [Member] | Foreign currency contracts [Member] | ||||||
Fair Value, Net Asset (Liability) [Abstract] | ||||||
Derivative asset | 0 | 0 | 0 | |||
Derivative liability | 0 | 0 | 0 | |||
Recurring [Member] | Significant Unobservable Inputs (Level 3) [Member] | Commodity derivative contracts [Member] | ||||||
Fair Value, Net Asset (Liability) [Abstract] | ||||||
Derivative asset | 0 | 0 | 0 | |||
Derivative liability | 0 | 0 | 0 | |||
Recurring [Member] | Significant Unobservable Inputs (Level 3) [Member] | Interest rate swap contracts [Member] | ||||||
Fair Value, Net Asset (Liability) [Abstract] | ||||||
Derivative asset | 0 | 0 | ||||
Derivative liability | 0 | 0 | ||||
Recurring [Member] | Significant Unobservable Inputs (Level 3) [Member] | Equity securities [Member] | ||||||
Fair Value, Net Asset (Liability) [Abstract] | ||||||
Equity securities | 0 | 0 | 0 | |||
Recurring [Member] | Significant Unobservable Inputs (Level 3) [Member] | Convertible debt securities [Member] | ||||||
Fair Value, Net Asset (Liability) [Abstract] | ||||||
Debt securities | $ 0 | $ 0 | $ 0 |
Fair Value of Financial Instr_5
Fair Value of Financial Instruments (Details 2) - Nonrecurring [Member] $ in Millions | 6 Months Ended |
Aug. 31, 2019USD ($) | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |
Long-lived assets held for sale, Total Losses | $ 27 |
Asset impairment, Total Losses | 38 |
Trademarks [Member] | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |
Trademarks, Total Losses | 11 |
Quoted Prices in Active Markets (Level 1) [Member] | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |
Long-lived assets held for sale | 0 |
Assets, fair value | 0 |
Quoted Prices in Active Markets (Level 1) [Member] | Trademarks [Member] | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |
Trademarks | 0 |
Significant Other Observable Inputs (Level 2) [Member] | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |
Long-lived assets held for sale | 0 |
Assets, fair value | 0 |
Significant Other Observable Inputs (Level 2) [Member] | Trademarks [Member] | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |
Trademarks | 0 |
Significant Unobservable Inputs (Level 3) [Member] | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |
Long-lived assets held for sale | 1,444.4 |
Assets, fair value | 1,461.4 |
Significant Unobservable Inputs (Level 3) [Member] | Trademarks [Member] | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |
Trademarks | $ 17 |
Fair Value of Financial Instr_6
Fair Value of Financial Instruments (Details Textual) $ in Millions, $ in Millions | Jun. 30, 2018USD ($) | Jun. 30, 2018CAD ($) | Aug. 31, 2019USD ($) | Aug. 31, 2018USD ($) | Feb. 28, 2019USD ($) |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||||
Payments to acquire investments | $ 33 | $ 152.1 | |||
Long-term debt, including current portion | 12,795.9 | $ 12,825 | |||
Carrying amount [Member] | |||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||||
Long-term debt, including current portion | 12,795.9 | 12,825 | |||
Fair value [Member] | |||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||||
Long-term debt, including current portion | $ 13,677.2 | $ 12,768.5 | |||
Convertible debt securities [Member] | |||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||||
Payments to acquire investments | $ 150.5 | $ 200 |
Fair Value of Financial Instr_7
Fair Value of Financial Instruments (Details Textual 1) - USD ($) $ in Millions | 6 Months Ended | |
Aug. 31, 2019 | Feb. 28, 2019 | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets held for sale, carrying value | $ 1,019.1 | $ 0 |
Trademarks, carrying value | 2,787 | $ 3,198.1 |
Operating Segments [Member] | Wine and Spirits [Member] | Disposal Group, Not Discontinued Operations [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets held for sale, carrying value | 1,019.1 | |
Operating Segments [Member] | Wine and Spirits [Member] | Wine and Spirits Transaction [Member] | Disposal Group, Not Discontinued Operations [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets held for sale, carrying value | 877.6 | |
Impairment of long-lived assets held for sale | 27 | |
Nonrecurring [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Impairment of long-lived assets held for sale | 27 | |
Nonrecurring [Member] | Trademarks [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Impairment of trademarks | 11 | |
Nonrecurring [Member] | Operating Segments [Member] | Wine and Spirits [Member] | Wine and Spirits Transaction [Member] | Disposal Group, Not Discontinued Operations [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets held for sale, carrying value | 1,471.4 | |
Assets held for sale, estimated fair value | 1,444.4 | |
Impairment of long-lived assets held for sale | 27 | |
Nonrecurring [Member] | Operating Segments [Member] | Beer [Member] | Trademarks [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Trademarks, carrying value | 28 | |
Trademarks, estimated fair value | 17 | |
Impairment of trademarks | $ 11 |
Goodwill (Details)
Goodwill (Details) - USD ($) $ in Millions | 6 Months Ended | 12 Months Ended |
Aug. 31, 2019 | Feb. 28, 2019 | |
Changes in the carrying amount of goodwill [Roll Forward] | ||
Goodwill, beginning of period | $ 8,088.8 | $ 8,083.1 |
Purchase accounting allocations | 58.8 | 25 |
Foreign currency translation adjustments | (35.1) | (19.3) |
Goodwill, end of period | 7,696.7 | 8,088.8 |
Reclassified to assets held for sale | (415.8) | |
Operating Segments [Member] | Beer [Member] | ||
Changes in the carrying amount of goodwill [Roll Forward] | ||
Goodwill, beginning of period | 5,167.9 | 5,157.6 |
Purchase accounting allocations | 0 | 22.3 |
Foreign currency translation adjustments | (26) | (12) |
Goodwill, end of period | 5,141.9 | 5,167.9 |
Reclassified to assets held for sale | 0 | |
Operating Segments [Member] | Wine and Spirits [Member] | ||
Changes in the carrying amount of goodwill [Roll Forward] | ||
Goodwill, beginning of period | 2,920.9 | 2,925.5 |
Purchase accounting allocations | 58.8 | 2.7 |
Foreign currency translation adjustments | (9.1) | (7.3) |
Goodwill, end of period | 2,554.8 | $ 2,920.9 |
Reclassified to assets held for sale | $ (415.8) |
Goodwill (Details Textual)
Goodwill (Details Textual) $ in Millions | 6 Months Ended |
Aug. 31, 2019USD ($) | |
Goodwill [Line Items] | |
Preexisting equity interest | 20.00% |
Operating Segments [Member] | Wine and Spirits [Member] | |
Goodwill [Line Items] | |
Equity interest | 75.00% |
Gain on remeasurement of equity interest | $ 11.8 |
Intangible Assets (Details)
Intangible Assets (Details) - USD ($) $ in Millions | Aug. 31, 2019 | Feb. 28, 2019 |
Finite-Lived Intangible Assets [Line Items] | ||
Amortizable intangible assets, Gross Carrying Amount | $ 110.3 | $ 110.4 |
Amortizable intangible assets, Net Carrying Amount | 37 | 40 |
Indefinite-lived Intangible Assets [Line Items] | ||
Intangible assets | 2,787 | 3,198.1 |
Trademarks [Member] | ||
Indefinite-lived Intangible Assets [Line Items] | ||
Nonamortizable intangible assets, Net Carrying Amount | 2,750 | 3,158.1 |
Customer relationships [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Amortizable intangible assets, Gross Carrying Amount | 89.9 | 89.9 |
Amortizable intangible assets, Net Carrying Amount | 36.4 | 39.1 |
Other [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Amortizable intangible assets, Gross Carrying Amount | 20.4 | 20.5 |
Amortizable intangible assets, Net Carrying Amount | $ 0.6 | $ 0.9 |
Equity Method Investments (Deta
Equity Method Investments (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | |||
Aug. 31, 2019 | Aug. 31, 2019 | Feb. 28, 2019 | Nov. 01, 2018 | Aug. 31, 2018 | |
Schedule of Equity Method Investments [Line Items] | |||||
Equity method investments | $ 3,003.8 | $ 3,003.8 | $ 3,465.6 | $ 120.3 | |
Canopy Equity Method Investment [Member] | |||||
Schedule of Equity Method Investments [Line Items] | |||||
Equity method investments | $ 2,846 | $ 2,846 | $ 3,332.1 | ||
Equity method investment, ownership percentage | 35.60% | 35.60% | 36.00% | 36.60% | |
Net sales | $ 67.7 | $ 138.4 | |||
Gross profit | 9.8 | 21.1 | |||
Net gain (loss) | (149.7) | (418.6) | |||
Net gain (loss) attributable to Canopy | (146.3) | (430.4) | |||
Other equity method investments [Member] | |||||
Schedule of Equity Method Investments [Line Items] | |||||
Equity method investments | $ 157.8 | $ 157.8 | $ 133.5 | ||
Other equity method investments [Member] | Minimum [Member] | |||||
Schedule of Equity Method Investments [Line Items] | |||||
Equity method investment, ownership percentage | 20.00% | 20.00% | 20.00% | ||
Other equity method investments [Member] | Maximum [Member] | |||||
Schedule of Equity Method Investments [Line Items] | |||||
Equity method investment, ownership percentage | 50.00% | 50.00% | 50.00% |
Equity Method Investments (De_2
Equity Method Investments (Details 1) - Significant Other Observable Inputs (Level 2) [Member] - Warrant [Member] | Aug. 31, 2019$ / shares | Jun. 27, 2019$ / shares |
New Tranche A Warrants [Member] | Issue date exercise price [Member] | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Warrants outstanding, measurement input, C$ per share | $ 50.40 | $ 50.40 |
New Tranche A Warrants [Member] | Valuation date stock price [Member] | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Warrants outstanding, measurement input, C$ per share | $ 31.46 | $ 53.36 |
New Tranche A Warrants [Member] | Expected life (in years) [Member] | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Warrants outstanding, term | 4 years 2 months 12 days | 4 years 3 months 18 days |
New Tranche A Warrants [Member] | Expected volatility [Member] | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Warrants outstanding, measurement input, decimal | 0.650 | 0.667 |
New Tranche A Warrants [Member] | Risk-free interest rate [Member] | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Warrants outstanding, measurement input, decimal | 0.012 | 0.014 |
New Tranche A Warrants [Member] | Expected dividend yield [Member] | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Warrants outstanding, measurement input, decimal | 0 | 0 |
New Tranche B Warrants [Member] | Issue date exercise price [Member] | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Warrants outstanding, measurement input, C$ per share | $ 76.68 | $ 76.68 |
New Tranche B Warrants [Member] | Valuation date stock price [Member] | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Warrants outstanding, measurement input, C$ per share | $ 31.46 | $ 53.36 |
New Tranche B Warrants [Member] | Expected life (in years) [Member] | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Warrants outstanding, term | 7 years 2 months 12 days | 7 years 3 months 18 days |
New Tranche B Warrants [Member] | Expected volatility [Member] | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Warrants outstanding, measurement input, decimal | 0.650 | 0.667 |
New Tranche B Warrants [Member] | Risk-free interest rate [Member] | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Warrants outstanding, measurement input, decimal | 0.012 | 0.014 |
New Tranche B Warrants [Member] | Expected dividend yield [Member] | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Warrants outstanding, measurement input, decimal | 0 | 0 |
Equity Method Investments (De_3
Equity Method Investments (Details Textual) $ / shares in Units, $ in Millions, $ in Millions | Aug. 31, 2019USD ($) | Jun. 27, 2019USD ($)shares | Jun. 27, 2019CAD ($)$ / sharesshares | Nov. 01, 2018USD ($) | Nov. 01, 2018CAD ($)$ / sharesshares | Nov. 30, 2017USD ($) | Nov. 30, 2017CAD ($)$ / sharesshares | Aug. 31, 2019USD ($) | Aug. 31, 2018USD ($) | Aug. 31, 2019USD ($) | Aug. 31, 2018USD ($) | Feb. 28, 2019 |
Schedule of Equity Method Investments [Line Items] | ||||||||||||
Payments to acquire investments | $ 33 | $ 152.1 | ||||||||||
Equity in earnings (losses) of equity method investees | $ (485.6) | $ (2.1) | (588.6) | 2.6 | ||||||||
Common shares to be repurchased for cancellation under share repurchase credit feature | shares | 27,378,866 | 27,378,866 | ||||||||||
Unrealized net gain (loss) on securities measured at fair value | $ (839.1) | 692.1 | $ (1,666.6) | 950.4 | ||||||||
Canopy Equity Method Investment [Member] | ||||||||||||
Schedule of Equity Method Investments [Line Items] | ||||||||||||
Equity method investment, ownership percentage | 35.60% | 36.60% | 35.60% | 35.60% | 36.00% | |||||||
Equity in earnings (losses) of equity method investees | $ (484.4) | $ (590.4) | ||||||||||
Fair value of equity method investment | $ 2,916 | 2,916 | 2,916 | |||||||||
New November 2018 Canopy Warrants [Member] | ||||||||||||
Schedule of Equity Method Investments [Line Items] | ||||||||||||
Equity in earnings (losses) of equity method investees | $ (409) | |||||||||||
New Tranche B Warrants and New Tranche C Warrants [Member] | ||||||||||||
Schedule of Equity Method Investments [Line Items] | ||||||||||||
Warrant reduction due to open market or private agreement purchases | shares | 20,000,000 | 20,000,000 | ||||||||||
New Tranche B Warrants and New Tranche C Warrants [Member] | Maximum [Member] | ||||||||||||
Schedule of Equity Method Investments [Line Items] | ||||||||||||
Dollar value of common shares to be repurchased for cancellation under share repurchase credit feature | $ 1,583 | |||||||||||
November 2017 Canopy Investment [Member] | ||||||||||||
Schedule of Equity Method Investments [Line Items] | ||||||||||||
Cost method investment, ownership percentage | 9.90% | |||||||||||
Equity securities [Member] | ||||||||||||
Schedule of Equity Method Investments [Line Items] | ||||||||||||
Payments to acquire investments | $ 3,869.9 | $ 5,078.7 | $ 191.3 | $ 245 | ||||||||
Equity securities [Member] | November 2017 Canopy Investment [Member] | ||||||||||||
Schedule of Equity Method Investments [Line Items] | ||||||||||||
Unrealized net gain (loss) on securities measured at fair value | 0 | 328.1 | 0 | 461 | ||||||||
Common Stock [Member] | November 2018 Canopy Investment [Member] | ||||||||||||
Schedule of Equity Method Investments [Line Items] | ||||||||||||
Number of common shares acquired | shares | 104,500,000 | |||||||||||
Common Stock [Member] | November 2017 Canopy Investment [Member] | ||||||||||||
Schedule of Equity Method Investments [Line Items] | ||||||||||||
Number of common shares acquired | shares | 18,900,000 | |||||||||||
Warrant [Member] | Canopy Warrants [Member] | ||||||||||||
Schedule of Equity Method Investments [Line Items] | ||||||||||||
Payments to acquire investments | $ 6,100 | |||||||||||
Warrant [Member] | November 2017 Canopy Warrants [Member] | ||||||||||||
Schedule of Equity Method Investments [Line Items] | ||||||||||||
Number of common shares to be acquired upon exercise of warrants | shares | 18,900,000 | |||||||||||
Exercise price of warrants, C$ per share | $ / shares | $ 12.98 | |||||||||||
Unrealized net gain (loss) on securities measured at fair value | (316.7) | 310.5 | (450.8) | 435.9 | ||||||||
Warrant [Member] | November 2018 Canopy Warrants [Member] | ||||||||||||
Schedule of Equity Method Investments [Line Items] | ||||||||||||
Number of common shares to be acquired upon exercise of warrants | shares | 139,700,000 | |||||||||||
Unrealized net gain (loss) on securities measured at fair value | $ 0 | $ 0 | ||||||||||
Warrant [Member] | Tranche A Warrants [Member] | ||||||||||||
Schedule of Equity Method Investments [Line Items] | ||||||||||||
Number of common shares to be acquired upon exercise of warrants | shares | 88,500,000 | |||||||||||
Exercise price of warrants, C$ per share | $ / shares | $ 50.40 | |||||||||||
Warrant [Member] | Tranche B Warrants [Member] | ||||||||||||
Schedule of Equity Method Investments [Line Items] | ||||||||||||
Number of common shares to be acquired upon exercise of warrants | shares | 51,200,000 | |||||||||||
Warrant [Member] | New November 2018 Canopy Warrants [Member] | ||||||||||||
Schedule of Equity Method Investments [Line Items] | ||||||||||||
Number of common shares to be acquired upon exercise of warrants | shares | 139,700,000 | |||||||||||
Unrealized net gain (loss) on securities measured at fair value | $ 1,176 | $ (473.6) | $ (1,134.4) | |||||||||
Warrant [Member] | New Tranche A Warrants [Member] | ||||||||||||
Schedule of Equity Method Investments [Line Items] | ||||||||||||
Number of common shares to be acquired upon exercise of warrants | shares | 88,500,000 | |||||||||||
Exercise price of warrants, C$ per share | $ / shares | $ 50.40 | |||||||||||
Unrealized net gain (loss) on securities measured at fair value | 322.5 | |||||||||||
Warrant [Member] | New Tranche B Warrants [Member] | ||||||||||||
Schedule of Equity Method Investments [Line Items] | ||||||||||||
Number of common shares to be acquired upon exercise of warrants | shares | 38,400,000 | |||||||||||
Exercise price of warrants, C$ per share | $ / shares | $ 76.68 | |||||||||||
Unrealized net gain (loss) on securities measured at fair value | $ 853.5 | |||||||||||
Warrant [Member] | New Tranche C Warrants [Member] | ||||||||||||
Schedule of Equity Method Investments [Line Items] | ||||||||||||
Number of common shares to be acquired upon exercise of warrants | shares | 12,800,000 |
Other Assets (Details)
Other Assets (Details) - USD ($) $ in Millions | Aug. 31, 2019 | Feb. 28, 2019 |
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] | ||
Operating lease right-of-use asset | $ 552.8 | $ 0 |
Other | 97.6 | 109.7 |
Other assets, net | $ 650.4 | $ 109.7 |
Borrowings (Details)
Borrowings (Details) - USD ($) | 6 Months Ended | ||||
Aug. 31, 2019 | Aug. 31, 2018 | Jun. 30, 2019 | Feb. 28, 2019 | Sep. 30, 2018 | |
Short-term Debt | |||||
Short-term borrowings | $ 150,900,000 | $ 791,500,000 | |||
Long-term Debt | |||||
Other, Current | 11,900,000 | ||||
Other, Long-term | 13,300,000 | ||||
Other, Total | 25,200,000 | 28,900,000 | |||
Long-term debt, Current | 636,100,000 | 1,065,200,000 | |||
Long-term debt, Long-term | 12,159,800,000 | 11,759,800,000 | |||
Long-term debt, Total | 12,795,900,000 | 12,825,000,000 | |||
Debt instrument, face amount | $ 2,000,000,000 | ||||
Partial repayment Five-Year Term Facility | 1,331,500,000 | $ 23,500,000 | |||
Unsecured debt [Member] | Senior credit facility, Term loan [Member] | |||||
Long-term Debt | |||||
Unsecured debt, Current | 0 | ||||
Unsecured debt, Long-term | 0 | ||||
Unsecured debt, Total | 0 | 492,800,000 | |||
Unsecured debt [Member] | Term Loan Credit Facilities [Member] | |||||
Long-term Debt | |||||
Unsecured debt, Current | 24,600,000 | ||||
Unsecured debt, Long-term | 1,528,300,000 | ||||
Unsecured debt, Total | 1,552,900,000 | 1,486,400,000 | |||
Unsecured debt [Member] | Senior notes [Member] | |||||
Long-term Debt | |||||
Unsecured debt, Current | 599,600,000 | ||||
Unsecured debt, Long-term | 10,618,200,000 | ||||
Unsecured debt, Total | 11,217,800,000 | 10,816,900,000 | |||
Unsecured debt [Member] | Three-Year Term Facility [Member] | |||||
Long-term Debt | |||||
Unsecured debt, Total | 499,600,000 | ||||
Debt instrument, face amount | $ 500,000,000 | 500,000,000 | |||
Interest rate | 3.40% | ||||
LIBOR margin | 1.13% | ||||
Unsecured debt [Member] | Five-Year Term Facility [Member] | |||||
Long-term Debt | |||||
Unsecured debt, Total | $ 562,000,000 | ||||
Debt instrument, face amount | $ 1,000,000,000 | 1,000,000,000 | |||
Interest rate | 3.50% | ||||
LIBOR margin | 1.25% | ||||
Partial repayment Five-Year Term Facility | $ 400,000,000 | ||||
Unsecured debt [Member] | Term Credit Agreement [Member] | |||||
Long-term Debt | |||||
Debt instrument, face amount | 1,500,000,000 | $ 1,500,000,000 | |||
Unsecured debt [Member] | 2019 Five-Year Term Facility [Member] | |||||
Long-term Debt | |||||
Unsecured debt, Total | 491,300,000 | ||||
Debt instrument, face amount | $ 491,300,000 | $ 491,300,000 | |||
Interest rate | 3.10% | ||||
LIBOR margin | 0.88% | ||||
Senior credit facility, Revolving credit loans [Member] | |||||
Short-term Debt | |||||
Short-term borrowings | $ 0 | 59,000,000 | |||
Long-term Debt | |||||
Debt instrument, face amount | $ 2,000,000,000 | ||||
Interest rate | 0.00% | ||||
LIBOR margin | 1.13% | ||||
Remaining borrowing capacity | $ 1,836,800,000 | ||||
Letters of credit [Member] | |||||
Long-term Debt | |||||
Debt instrument, face amount | 200,000,000 | ||||
Outstanding letters of credit | 12,200,000 | ||||
Commercial paper [Member] | |||||
Short-term Debt | |||||
Short-term borrowings | 150,900,000 | $ 732,500,000 | |||
Long-term Debt | |||||
Debt instrument, face amount | $ 151,000,000 | ||||
Interest rate | 2.40% |
Borrowings (Details 1)
Borrowings (Details 1) $ in Millions | Aug. 31, 2019USD ($) |
Long-term Debt, Fiscal Year Maturity [Abstract] | |
2020 | $ 618.4 |
2021 | 734.6 |
2022 | 1,680.6 |
2023 | 1,827.2 |
2024 | 1,637.5 |
2025 | 780.7 |
Thereafter | 5,600 |
Long-term Debt, Gross | $ 12,879 |
Borrowings (Details Textual)
Borrowings (Details Textual) - USD ($) | Aug. 31, 2019 | Jul. 31, 2019 | Jun. 30, 2019 | Feb. 28, 2019 | Oct. 31, 2018 | Sep. 30, 2018 | Nov. 30, 2014 |
Schedule of Debt [Line Items] | |||||||
Debt instrument, face amount | $ 2,000,000,000 | ||||||
Short-term borrowings | $ 150,900,000 | $ 791,500,000 | |||||
Unamortized debt issuance costs, long-term debt obligations | 68,400,000 | ||||||
Unamortized discount, long-term debt obligations | 14,700,000 | ||||||
Designated as hedging instrument [Member] | Interest rate swap contracts [Member] | |||||||
Schedule of Debt [Line Items] | |||||||
Aggregate notional value of derivative instruments | 375,000,000 | $ 375,000,000 | 0 | ||||
Average fixed interest rate, interest rate swap contracts | 1.90% | ||||||
Commercial paper [Member] | |||||||
Schedule of Debt [Line Items] | |||||||
Debt instrument, face amount | 151,000,000 | ||||||
Short-term borrowings | $ 150,900,000 | $ 732,500,000 | |||||
Interest rate | 2.40% | ||||||
Commercial paper [Member] | Maximum [Member] | |||||||
Schedule of Debt [Line Items] | |||||||
Debt instrument, face amount | $ 2,000,000,000 | ||||||
Unsecured debt [Member] | Term Credit Agreement [Member] | |||||||
Schedule of Debt [Line Items] | |||||||
Debt instrument, face amount | $ 1,500,000,000 | 1,500,000,000 | |||||
Unsecured debt [Member] | Three-Year Term Facility [Member] | |||||||
Schedule of Debt [Line Items] | |||||||
Debt instrument, face amount | $ 500,000,000 | 500,000,000 | |||||
Interest rate | 3.40% | ||||||
Unsecured debt [Member] | Five-Year Term Facility [Member] | |||||||
Schedule of Debt [Line Items] | |||||||
Debt instrument, face amount | $ 1,000,000,000 | $ 1,000,000,000 | |||||
Interest rate | 3.50% | ||||||
Unsecured debt [Member] | 2019 Five-Year Term Facility [Member] | |||||||
Schedule of Debt [Line Items] | |||||||
Debt instrument, face amount | $ 491,300,000 | $ 491,300,000 | |||||
Interest rate | 3.10% | ||||||
Unsecured debt [Member] | July 2019 Senior Notes [Member] | |||||||
Schedule of Debt [Line Items] | |||||||
Debt instrument, face amount | $ 800,000,000 | ||||||
Coupon rates of notes | 3.15% | ||||||
Proceeds from issuance of long-term debt, net of discount and debt issuance costs | $ 793,000,000 | ||||||
Percentage of outstanding principal amount as redemption price | 100.00% | ||||||
Basis points above adjusted treasury rate | 20.00% | ||||||
Unsecured debt [Member] | November 2014 Senior Notes [Member] | |||||||
Schedule of Debt [Line Items] | |||||||
Debt instrument, face amount | $ 400,000,000 | ||||||
Coupon rates of notes | 3.875% |
Income Taxes (Details Textual)
Income Taxes (Details Textual) | 3 Months Ended | 6 Months Ended | ||
Aug. 31, 2019 | Aug. 31, 2018 | Aug. 31, 2019 | Aug. 31, 2018 | |
Income Tax Disclosure [Abstract] | ||||
Effective tax rate | 28.10% | 15.70% | 33.90% | 16.30% |
Income Taxes (Details Textual 1
Income Taxes (Details Textual 1) - Subsequent Event [Member] $ in Millions | Oct. 03, 2019USD ($) |
Minimum [Member] | |
Subsequent Event [Line Items] | |
Estimated benefit to deferred tax assets | $ 500 |
Maximum [Member] | |
Subsequent Event [Line Items] | |
Estimated benefit to deferred tax assets | $ 550 |
Deferred Income Taxes and Oth_3
Deferred Income Taxes and Other Liabilities (Details) - USD ($) $ in Millions | Aug. 31, 2019 | Feb. 28, 2019 |
Other Liabilities Disclosure [Abstract] | ||
Deferred income taxes | $ 561.3 | $ 1,029.7 |
Operating lease liability | 511.9 | 0 |
Unrecognized tax benefit liabilities | 249.8 | 239 |
Long-term income tax payable | 95.4 | 95.4 |
Other | 90 | 106.6 |
Deferred income taxes and other liabilities, Total | $ 1,508.4 | $ 1,470.7 |
Leases (Details)
Leases (Details) - USD ($) $ in Millions | Aug. 31, 2019 | Feb. 28, 2019 |
Lessee, Lease, Description [Line Items] | ||
Operating lease right-of-use asset | $ 552.8 | $ 0 |
Total lease assets | 579.2 | |
Operating lease liability | 511.9 | $ 0 |
Total lease liabilities | 613.8 | |
Other assets | ||
Lessee, Lease, Description [Line Items] | ||
Operating lease right-of-use asset | 552.8 | |
Property, plant, and equipment | ||
Lessee, Lease, Description [Line Items] | ||
Finance lease assets | 26.4 | |
Other accrued expenses and liabilities | ||
Lessee, Lease, Description [Line Items] | ||
Operating lease liability | 76.7 | |
Current maturities of long-term debt | ||
Lessee, Lease, Description [Line Items] | ||
Current lease liability, finance leases | 11.9 | |
Deferred income taxes and other liabilities | ||
Lessee, Lease, Description [Line Items] | ||
Operating lease liability | 511.9 | |
Long-term debt, less current maturities | ||
Lessee, Lease, Description [Line Items] | ||
Long-term lease liability, finance leases | $ 13.3 |
Leases (Details 1)
Leases (Details 1) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended |
Aug. 31, 2019 | Aug. 31, 2019 | |
Lease, Cost [Abstract] | ||
Operating lease cost | $ 23.1 | $ 46.5 |
Finance lease cost, Amortization of right-of-use assets | 2.8 | 5.6 |
Finance lease cost, Interest on lease liabilities | 0.1 | 0.3 |
Short-term lease cost | 1.9 | 4.2 |
Variable lease cost | 51.5 | 95.4 |
Total lease cost | $ 79.4 | $ 152 |
Leases (Details 2)
Leases (Details 2) $ in Millions | Aug. 31, 2019USD ($) |
Operating Lease Liabilities, Payments Due [Abstract] | |
2020 | $ 51.8 |
2021 | 94.3 |
2022 | 81.6 |
2023 | 69.9 |
2024 | 63.5 |
2025 | 53.6 |
Thereafter | 310.9 |
Total lease payments | 725.6 |
Interest | (137) |
Total lease liabilities | 588.6 |
Finance Lease Liabilities, Payments, Due [Abstract] | |
2020 | 6.4 |
2021 | 10.4 |
2022 | 6.2 |
2023 | 2.6 |
2024 | 0.5 |
2025 | 0 |
Thereafter | 0 |
Total lease payments | 26.1 |
Interest | (0.9) |
Total lease liabilities | $ 25.2 |
Leases (Details 3)
Leases (Details 3) $ in Millions | Feb. 28, 2019USD ($) |
Operating Leases, Future Minimum Payments Due, Fiscal Year Maturity [Abstract] | |
2020 | $ 59 |
2021 | 58.2 |
2022 | 51.1 |
2023 | 47.9 |
2024 | 41.2 |
Thereafter | 302.1 |
Future payments under noncancelable operating leases, Total | $ 559.5 |
Leases (Details 4)
Leases (Details 4) $ in Millions | 6 Months Ended |
Aug. 31, 2019USD ($) | |
Leases [Abstract] | |
Operating cash flows included in the measurement of lease liabilities, Operating leases | $ 46.6 |
Operating cash flows included in the measurement of lease liabilities, Finance leases | 0.3 |
Financing cash flows included in the measurement of lease liabilities, Finance leases | 7.3 |
Right-of-use-assets obtained in exchange for new lease liabilities, Operating leases | 17.3 |
Right-of-use-assets obtained in exchange for new lease liabilities, Finance leases | $ 4 |
Remaining lease term, Operating leases | 11 years 10 months 24 days |
Remaining lease term, Finance leases | 3 years 4 months 24 days |
Discount rate, Operating leases | 3.70% |
Discount rate, Finance leases | 2.70% |
Leases (Details Textual)
Leases (Details Textual) | Aug. 31, 2019 |
Leases [Abstract] | |
Remaining lease term | 30 years |
Stockholders' Equity (Details)
Stockholders' Equity (Details) - shares | 3 Months Ended | 6 Months Ended | ||||
Aug. 31, 2019 | May 31, 2019 | Aug. 31, 2018 | May 31, 2018 | Aug. 31, 2019 | Aug. 31, 2018 | |
Class A Common Stock [Member] | ||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Common Stock, beginning of period | 185,740,178 | 185,740,178 | ||||
Treasury Stock, beginning of period | 18,927,966 | 18,927,966 | ||||
Common Stock, end of period | 185,880,112 | 185,880,112 | ||||
Treasury Stock, end of period | 18,604,964 | 18,604,964 | ||||
Class B Convertible Common Stock [Member] | ||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Common Stock, beginning of period | 28,322,419 | 28,322,419 | ||||
Treasury Stock, beginning of period | 5,005,800 | 5,005,800 | ||||
Common Stock, end of period | 28,321,821 | 28,321,821 | ||||
Treasury Stock, end of period | 5,005,800 | 5,005,800 | ||||
Common Stock [Member] | Class A Common Stock [Member] | ||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Common Stock, beginning of period | 185,873,845 | 185,740,178 | 258,940,446 | 258,718,356 | 185,740,178 | 258,718,356 |
Conversion of shares | 6,267 | 133,667 | 2,500 | 5,144 | ||
Exercise of stock options | 0 | 0 | 137,219 | 216,946 | ||
Common Stock, end of period | 185,880,112 | 185,873,845 | 259,080,165 | 258,940,446 | 185,880,112 | 259,080,165 |
Share repurchases | 0 | 0 | 0 | |||
Employee stock purchases | 0 | 0 | ||||
Grant of restricted stock awards | 0 | |||||
Common Stock [Member] | Class A Common Stock [Member] | Restricted stock units [Member] | ||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Vesting of stock units | 0 | 0 | 0 | 0 | ||
Common Stock [Member] | Class A Common Stock [Member] | Performance share units [Member] | ||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Vesting of stock units | 0 | 0 | ||||
Common Stock [Member] | Class A Common Stock [Member] | Restricted shares [Member] | ||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Cancellation of restricted shares | 0 | |||||
Common Stock [Member] | Class B Convertible Common Stock [Member] | ||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Common Stock, beginning of period | 28,322,364 | 28,322,419 | 28,330,243 | 28,335,387 | 28,322,419 | 28,335,387 |
Conversion of shares | (543) | (55) | (2,500) | (5,144) | ||
Exercise of stock options | 0 | 0 | 0 | 0 | ||
Common Stock, end of period | 28,321,821 | 28,322,364 | 28,327,743 | 28,330,243 | 28,321,821 | 28,327,743 |
Share repurchases | 0 | 0 | 0 | |||
Employee stock purchases | 0 | 0 | ||||
Grant of restricted stock awards | 0 | |||||
Common Stock [Member] | Class B Convertible Common Stock [Member] | Restricted stock units [Member] | ||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Vesting of stock units | 0 | 0 | 0 | 0 | ||
Common Stock [Member] | Class B Convertible Common Stock [Member] | Performance share units [Member] | ||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Vesting of stock units | 0 | 0 | ||||
Common Stock [Member] | Class B Convertible Common Stock [Member] | Restricted shares [Member] | ||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Cancellation of restricted shares | 0 | |||||
Common Stock [Member] | Class 1 Common Stock [Member] | ||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Common Stock, beginning of period | 1,018,119 | 1,149,624 | 7,088 | 1,970 | 1,149,624 | 1,970 |
Conversion of shares | (5,724) | (133,612) | 0 | 0 | ||
Exercise of stock options | 0 | 2,107 | 2,325 | 5,118 | ||
Common Stock, end of period | 1,012,395 | 1,018,119 | 9,413 | 7,088 | 1,012,395 | 9,413 |
Share repurchases | 0 | 0 | 0 | |||
Employee stock purchases | 0 | 0 | ||||
Grant of restricted stock awards | 0 | |||||
Common Stock [Member] | Class 1 Common Stock [Member] | Restricted stock units [Member] | ||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Vesting of stock units | 0 | 0 | 0 | 0 | ||
Common Stock [Member] | Class 1 Common Stock [Member] | Performance share units [Member] | ||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Vesting of stock units | 0 | 0 | ||||
Common Stock [Member] | Class 1 Common Stock [Member] | Restricted shares [Member] | ||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Cancellation of restricted shares | 0 | |||||
Treasury Stock [Member] | Class A Common Stock [Member] | ||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Treasury Stock, beginning of period | 18,636,987 | 18,927,966 | 91,111,003 | 90,743,239 | 18,927,966 | 90,743,239 |
Conversion of shares | 0 | 0 | 0 | 0 | ||
Exercise of stock options | (258,628) | (173,725) | 0 | 0 | ||
Treasury Stock, end of period | 18,604,964 | 18,636,987 | 92,971,811 | 91,111,003 | 18,604,964 | 92,971,811 |
Share repurchases | 265,593 | 1,901,637 | 450,508 | |||
Employee stock purchases | (36,840) | (34,203) | ||||
Grant of restricted stock awards | (3,552) | |||||
Treasury Stock [Member] | Class A Common Stock [Member] | Restricted stock units [Member] | ||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Vesting of stock units | (2,148) | (88,683) | (3,074) | (20,392) | ||
Shares withheld to satisfy tax withholding requirements | 1,176 | 48,562 | 2,211 | 12,743 | 49,738 | 14,954 |
Treasury Stock [Member] | Class A Common Stock [Member] | Performance share units [Member] | ||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Vesting of stock units | (29,015) | (62,352) | ||||
Shares withheld to satisfy tax withholding requirements | 0 | 17,439 | 0 | 44,016 | 17,439 | 44,016 |
Treasury Stock [Member] | Class A Common Stock [Member] | Restricted shares [Member] | ||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Cancellation of restricted shares | 444 | |||||
Treasury Stock [Member] | Class B Convertible Common Stock [Member] | ||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Treasury Stock, beginning of period | 5,005,800 | 5,005,800 | 5,005,800 | 5,005,800 | 5,005,800 | 5,005,800 |
Conversion of shares | 0 | 0 | 0 | 0 | ||
Exercise of stock options | 0 | 0 | 0 | 0 | ||
Treasury Stock, end of period | 5,005,800 | 5,005,800 | 5,005,800 | 5,005,800 | 5,005,800 | 5,005,800 |
Share repurchases | 0 | 0 | 0 | |||
Employee stock purchases | 0 | 0 | ||||
Grant of restricted stock awards | 0 | |||||
Treasury Stock [Member] | Class B Convertible Common Stock [Member] | Restricted stock units [Member] | ||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Vesting of stock units | 0 | 0 | 0 | 0 | ||
Treasury Stock [Member] | Class B Convertible Common Stock [Member] | Performance share units [Member] | ||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Vesting of stock units | 0 | 0 | ||||
Treasury Stock [Member] | Class B Convertible Common Stock [Member] | Restricted shares [Member] | ||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Cancellation of restricted shares | 0 |
Stockholders' Equity (Details 1
Stockholders' Equity (Details 1) - USD ($) | Aug. 31, 2019 | Aug. 31, 2019 | Aug. 31, 2018 | May 31, 2018 | Aug. 31, 2019 | Jan. 31, 2018 |
Equity, Class of Treasury Stock [Line Items] | ||||||
Dollar Value of Shares Repurchased | $ 50,000,000 | $ 404,300,000 | $ 100,000,000 | |||
Class A and Class B [Member] | 2018 Authorization [Member] | ||||||
Equity, Class of Treasury Stock [Line Items] | ||||||
Repurchase Authorization | $ 3,000,000,000 | |||||
Class A Common Stock [Member] | 2018 Authorization [Member] | ||||||
Equity, Class of Treasury Stock [Line Items] | ||||||
Dollar Value of Shares Repurchased | $ 1,045,900,000 | $ 50,000,000 | ||||
Number of Shares Repurchased | 4,897,605 | 265,593 |
Stockholders' Equity (Details T
Stockholders' Equity (Details Textual) - USD ($) | Aug. 31, 2019 | Aug. 31, 2019 | Aug. 31, 2018 | May 31, 2018 | Aug. 31, 2019 | Jan. 31, 2018 |
Equity, Class of Treasury Stock [Line Items] | ||||||
Dollar value of shares repurchased | $ 50,000,000 | $ 404,300,000 | $ 100,000,000 | |||
Class A and Class B [Member] | 2018 Authorization [Member] | ||||||
Equity, Class of Treasury Stock [Line Items] | ||||||
Repurchase authorization | $ 3,000,000,000 | |||||
Class A Common Stock [Member] | 2018 Authorization [Member] | ||||||
Equity, Class of Treasury Stock [Line Items] | ||||||
Share repurchases | 4,897,605 | 265,593 | ||||
Dollar value of shares repurchased | $ 1,045,900,000 | $ 50,000,000 |
Net Income (Loss) Per Common _3
Net Income (Loss) Per Common Share Attributable to CBI (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Millions | 3 Months Ended | 6 Months Ended | ||
Aug. 31, 2019 | Aug. 31, 2018 | Aug. 31, 2019 | Aug. 31, 2018 | |
Earnings per share reconciliation | ||||
Net income (loss) attributable to CBI allocated – basic | $ (525.2) | $ 1,149.5 | $ (770.6) | $ 1,893.3 |
Class A Common Stock [Member] | ||||
Earnings per share reconciliation | ||||
Net income (loss) attributable to CBI allocated – basic | (466.4) | 1,020 | (684.1) | 1,680.7 |
Conversion of Class B common shares into Class A common shares | 0 | 129.5 | 0 | 212.6 |
Effect of stock-based awards on allocated net income (loss) | 0 | 0 | 0 | 0 |
Net income (loss) attributable to CBI allocated – diluted | $ (466.4) | $ 1,149.5 | $ (684.1) | $ 1,893.3 |
Weighted average number of shares outstanding reconciliation | ||||
Weighted average common shares outstanding – basic | 168,310 | 167,172 | 168,215 | 167,617 |
Conversion of Class B common shares into Class A common shares | 0 | 23,323 | 0 | 23,325 |
Stock-based awards, primarily stock options | 0 | 5,412 | 0 | 5,526 |
Weighted average common shares outstanding – diluted | 168,310 | 195,907 | 168,215 | 196,468 |
Basic and diluted net income (loss) per common share attributable to CBI | ||||
Net income (loss) per common share attributable to CBI – basic | $ (2.77) | $ 6.11 | $ (4.08) | $ 10.03 |
Net income (loss) per common share attributable to CBI – diluted | $ (2.77) | $ 5.87 | $ (4.08) | $ 9.64 |
Class B Convertible Common Stock [Member] | ||||
Earnings per share reconciliation | ||||
Net income (loss) attributable to CBI allocated – basic | $ (58.8) | $ 129.5 | $ (86.5) | $ 212.6 |
Conversion of Class B common shares into Class A common shares | 0 | 0 | 0 | 0 |
Effect of stock-based awards on allocated net income (loss) | 0 | (3.2) | 0 | (5.2) |
Net income (loss) attributable to CBI allocated – diluted | $ (58.8) | $ 126.3 | $ (86.5) | $ 207.4 |
Weighted average number of shares outstanding reconciliation | ||||
Weighted average common shares outstanding – basic | 23,316 | 23,323 | 23,316 | 23,325 |
Conversion of Class B common shares into Class A common shares | 0 | 0 | 0 | 0 |
Stock-based awards, primarily stock options | 0 | 0 | 0 | 0 |
Weighted average common shares outstanding – diluted | 23,316 | 23,323 | 23,316 | 23,325 |
Basic and diluted net income (loss) per common share attributable to CBI | ||||
Net income (loss) per common share attributable to CBI – basic | $ (2.52) | $ 5.55 | $ (3.71) | $ 9.11 |
Net income (loss) per common share attributable to CBI – diluted | $ (2.52) | $ 5.41 | $ (3.71) | $ 8.89 |
Net Income (Loss) Per Common _4
Net Income (Loss) Per Common Share Attributable to CBI (Details Textual) - shares | 3 Months Ended | 6 Months Ended |
Aug. 31, 2019 | Aug. 31, 2019 | |
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Antidilutive shares | 3,304,955 | 3,367,943 |
Class B Convertible Common Stock [Member] | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Antidilutive shares | 23,316,411 | 23,316,505 |
Comprehensive Income (Loss) A_3
Comprehensive Income (Loss) Attributable to CBI (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||||
Aug. 31, 2019 | May 31, 2019 | Aug. 31, 2018 | May 31, 2018 | Aug. 31, 2019 | Aug. 31, 2018 | |
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||||
Net income (loss) attributable to CBI | $ (517) | $ (237.1) | $ 1,151.3 | $ 746.3 | $ (754.1) | $ 1,897.6 |
Other comprehensive income (loss) attributable to CBI | ||||||
Other comprehensive income (loss) attributable to CBI, Net of Tax Amount | (129.4) | (2.7) | 81.3 | (185.4) | ||
Comprehensive income (loss) attributable to CBI | (646.3) | 1,223.5 | (893.3) | 1,791.6 | ||
Share of other comprehensive income (loss) of equity method investments [Member] | ||||||
Other comprehensive income (loss) attributable to CBI | ||||||
Net gain (loss), Before Tax Amount | (11.8) | (30.6) | ||||
Net gain (loss), Tax (Expense) Benefit | 2.8 | 7.2 | ||||
Net gain (loss), Net of Tax Amount | (9) | (23.4) | ||||
Reclassification adjustments, Before Tax Amount | 0 | 0 | ||||
Reclassification adjustments, Tax (Expense) Benefit | 0 | 0 | ||||
Reclassification adjustments, Net of Tax Amount | 0 | 0 | ||||
Other comprehensive income (loss) attributable to CBI, Before Tax Amount | (11.8) | (30.6) | ||||
Other comprehensive income (loss) attributable to CBI, Tax (Expense) Benefit | 2.8 | 7.2 | ||||
Other comprehensive income (loss) attributable to CBI, Net of Tax Amount | (9) | (23.4) | ||||
Parent [Member] | ||||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||||
Net income (loss) attributable to CBI | (525.2) | 1,149.5 | (770.6) | 1,893.3 | ||
Other comprehensive income (loss) attributable to CBI | ||||||
Comprehensive income (loss) attributable to CBI | (646.3) | 1,223.5 | (893.3) | 1,791.6 | ||
Accumulated Other Comprehensive Income (Loss) [Member] | ||||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||||
Net income (loss) attributable to CBI | 0 | 0 | 0 | 0 | ||
Other comprehensive income (loss) attributable to CBI | ||||||
Net gain (loss), Net of Tax Amount | (116.2) | |||||
Reclassification adjustments, Net of Tax Amount | (6.5) | |||||
Other comprehensive income (loss) attributable to CBI, Before Tax Amount | (126) | 89.9 | (133.1) | (104.6) | ||
Other comprehensive income (loss) attributable to CBI, Tax (Expense) Benefit | 4.9 | (15.9) | 10.4 | 2.9 | ||
Other comprehensive income (loss) attributable to CBI, Net of Tax Amount | (121.1) | $ (1.6) | 74 | $ (175.7) | (122.7) | (101.7) |
Foreign currency translation adjustments [Member] | ||||||
Other comprehensive income (loss) attributable to CBI | ||||||
Net gain (loss), Before Tax Amount | (76.5) | 39.8 | (58.2) | (92.5) | ||
Net gain (loss), Tax (Expense) Benefit | 0 | 0 | 0 | 0 | ||
Net gain (loss), Net of Tax Amount | (76.5) | 39.8 | (58.2) | (92.5) | ||
Reclassification adjustments, Before Tax Amount | 0 | 0 | 0 | 0 | ||
Reclassification adjustments, Tax (Expense) Benefit | 0 | 0 | 0 | 0 | ||
Reclassification adjustments, Net of Tax Amount | 0 | 0 | 0 | 0 | ||
Other comprehensive income (loss) attributable to CBI, Before Tax Amount | (76.5) | 39.8 | (58.2) | (92.5) | ||
Other comprehensive income (loss) attributable to CBI, Tax (Expense) Benefit | 0 | 0 | 0 | 0 | ||
Other comprehensive income (loss) attributable to CBI, Net of Tax Amount | (76.5) | 39.8 | (58.2) | (92.5) | ||
Net unrealized gain (loss) on derivative instruments [Member] | ||||||
Other comprehensive income (loss) attributable to CBI | ||||||
Net gain (loss), Before Tax Amount | (34) | 49.9 | (38.4) | (9.2) | ||
Net gain (loss), Tax (Expense) Benefit | 2.1 | (15.6) | 3.8 | 1 | ||
Net gain (loss), Net of Tax Amount | (31.9) | 34.3 | (34.6) | (8.2) | ||
Reclassification adjustments, Before Tax Amount | (3.7) | 0.2 | (6) | (4.7) | ||
Reclassification adjustments, Tax (Expense) Benefit | 0 | (0.3) | (0.6) | 1 | ||
Reclassification adjustments, Net of Tax Amount | (3.7) | (0.1) | (6.6) | (3.7) | ||
Other comprehensive income (loss) attributable to CBI, Before Tax Amount | (37.7) | 50.1 | (44.4) | (13.9) | ||
Other comprehensive income (loss) attributable to CBI, Tax (Expense) Benefit | 2.1 | (15.9) | 3.2 | 2 | ||
Other comprehensive income (loss) attributable to CBI, Net of Tax Amount | (35.6) | $ 34.2 | (41.2) | (11.9) | ||
Pension/ postretirement adjustments [Member] | ||||||
Other comprehensive income (loss) attributable to CBI | ||||||
Net gain (loss), Before Tax Amount | (0.1) | 0 | 0 | |||
Net gain (loss), Tax (Expense) Benefit | 0 | 0 | 0 | |||
Net gain (loss), Net of Tax Amount | (0.1) | 0 | 0 | |||
Reclassification adjustments, Before Tax Amount | 0.1 | 0.1 | 0.3 | |||
Reclassification adjustments, Tax (Expense) Benefit | 0 | 0 | (0.1) | |||
Reclassification adjustments, Net of Tax Amount | 0.1 | 0.1 | 0.2 | |||
Other comprehensive income (loss) attributable to CBI, Before Tax Amount | 0 | 0.1 | 0.3 | |||
Other comprehensive income (loss) attributable to CBI, Tax (Expense) Benefit | 0 | 0 | (0.1) | |||
Other comprehensive income (loss) attributable to CBI, Net of Tax Amount | $ 0 | $ 0.1 | 0.2 | |||
Net unrealized gain (loss) on AFS debt securities [Member] | ||||||
Other comprehensive income (loss) attributable to CBI | ||||||
Net gain (loss), Before Tax Amount | (0.4) | |||||
Net gain (loss), Tax (Expense) Benefit | 0.1 | |||||
Net gain (loss), Net of Tax Amount | (0.3) | |||||
Reclassification adjustments, Before Tax Amount | 1.9 | |||||
Reclassification adjustments, Tax (Expense) Benefit | 0.9 | |||||
Reclassification adjustments, Net of Tax Amount | 2.8 | |||||
Other comprehensive income (loss) attributable to CBI, Before Tax Amount | 1.5 | |||||
Other comprehensive income (loss) attributable to CBI, Tax (Expense) Benefit | 1 | |||||
Other comprehensive income (loss) attributable to CBI, Net of Tax Amount | $ 2.5 |
Comprehensive Income (Loss) A_4
Comprehensive Income (Loss) Attributable to CBI (Details 1) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||||
Aug. 31, 2019 | May 31, 2019 | Aug. 31, 2018 | May 31, 2018 | Aug. 31, 2019 | Aug. 31, 2018 | |
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||||
Stockholders' equity, beginning of period | $ 12,551 | $ 12,551 | ||||
Other Comprehensive Income (Loss), Net of Tax, Portion Attributable to Parent [Abstract] | ||||||
Other comprehensive income (loss) attributable to CBI, Net of Tax Amount | $ (129.4) | (2.7) | $ 81.3 | $ (185.4) | ||
Stockholders' equity, period end | 11,377.5 | 11,377.5 | ||||
Share of other comprehensive income (loss) of equity method investments [Member] | ||||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||||
Stockholders' equity, beginning of period | 29.6 | 29.6 | ||||
Other Comprehensive Income (Loss), Net of Tax, Portion Attributable to Parent [Abstract] | ||||||
Other comprehensive income (loss) before reclassification adjustments | (9) | (23.4) | ||||
Amounts reclassified from accumulated other comprehensive income (loss) | 0 | 0 | ||||
Other comprehensive income (loss) attributable to CBI, Net of Tax Amount | (9) | (23.4) | ||||
Stockholders' equity, period end | 6.2 | 6.2 | ||||
Accumulated Other Comprehensive Income (Loss) [Member] | ||||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||||
Stockholders' equity, beginning of period | (353.9) | (353.9) | ||||
Other Comprehensive Income (Loss), Net of Tax, Portion Attributable to Parent [Abstract] | ||||||
Other comprehensive income (loss) before reclassification adjustments | (116.2) | |||||
Amounts reclassified from accumulated other comprehensive income (loss) | (6.5) | |||||
Other comprehensive income (loss) attributable to CBI, Net of Tax Amount | (121.1) | (1.6) | 74 | $ (175.7) | (122.7) | $ (101.7) |
Stockholders' equity, period end | (476.6) | (476.6) | ||||
Foreign currency translation adjustments [Member] | ||||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||||
Stockholders' equity, beginning of period | (406.5) | (406.5) | ||||
Other Comprehensive Income (Loss), Net of Tax, Portion Attributable to Parent [Abstract] | ||||||
Other comprehensive income (loss) before reclassification adjustments | (76.5) | 39.8 | (58.2) | (92.5) | ||
Amounts reclassified from accumulated other comprehensive income (loss) | 0 | 0 | 0 | 0 | ||
Other comprehensive income (loss) attributable to CBI, Net of Tax Amount | (76.5) | 39.8 | (58.2) | (92.5) | ||
Stockholders' equity, period end | (464.7) | (464.7) | ||||
Net unrealized gain (loss) on derivative instruments [Member] | ||||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||||
Stockholders' equity, beginning of period | 25.1 | 25.1 | ||||
Other Comprehensive Income (Loss), Net of Tax, Portion Attributable to Parent [Abstract] | ||||||
Other comprehensive income (loss) before reclassification adjustments | (31.9) | 34.3 | (34.6) | (8.2) | ||
Amounts reclassified from accumulated other comprehensive income (loss) | (3.7) | (0.1) | (6.6) | (3.7) | ||
Other comprehensive income (loss) attributable to CBI, Net of Tax Amount | (35.6) | $ 34.2 | (41.2) | (11.9) | ||
Stockholders' equity, period end | (16.1) | (16.1) | ||||
Pension/ postretirement adjustments [Member] | ||||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||||
Stockholders' equity, beginning of period | $ (2.1) | (2.1) | ||||
Other Comprehensive Income (Loss), Net of Tax, Portion Attributable to Parent [Abstract] | ||||||
Other comprehensive income (loss) before reclassification adjustments | (0.1) | 0 | 0 | |||
Amounts reclassified from accumulated other comprehensive income (loss) | 0.1 | 0.1 | 0.2 | |||
Other comprehensive income (loss) attributable to CBI, Net of Tax Amount | 0 | 0.1 | $ 0.2 | |||
Stockholders' equity, period end | $ (2) | $ (2) |
Condensed Consolidating Finan_3
Condensed Consolidating Financial Information (Details) - USD ($) $ in Millions | Aug. 31, 2019 | May 31, 2019 | Feb. 28, 2019 | Aug. 31, 2018 | May 31, 2018 | Feb. 28, 2018 |
Condensed Financial Statements, Captions [Line Items] | ||||||
Percentage of parent ownership of subsidiary guarantors | 100.00% | |||||
Current assets: | ||||||
Cash and cash equivalents | $ 81.3 | $ 93.6 | $ 206.1 | $ 90.3 | ||
Accounts receivable | 953.7 | 846.9 | ||||
Inventories | 1,311.4 | 2,130.4 | ||||
Intercompany receivable | 0 | 0 | ||||
Prepaid expenses and other | 525.1 | 613.1 | ||||
Assets held for sale - current | 666 | 0 | ||||
Total current assets | 3,537.5 | 3,684 | ||||
Property, plant, and equipment | 5,141.6 | 5,267.3 | ||||
Investments in subsidiaries | 0 | 0 | ||||
Goodwill | 7,696.7 | 8,088.8 | 8,083.1 | |||
Intangible assets | 2,787 | 3,198.1 | ||||
Intercompany notes receivable | 0 | 0 | ||||
Equity method investments | 3,003.8 | 3,465.6 | 120.3 | |||
Securities measured at fair value | 1,572.2 | 3,234.7 | ||||
Deferred income taxes | 2,146.8 | 2,183.3 | ||||
Assets held for sale | 1,019.1 | 0 | ||||
Other assets | 650.4 | 109.7 | ||||
Total assets | 27,555.1 | 29,231.5 | ||||
Current liabilities: | ||||||
Short-term borrowings | 150.9 | 791.5 | ||||
Current maturities of long-term debt | 636.1 | 1,065.2 | ||||
Accounts payable | 608.6 | 616.7 | ||||
Intercompany payable | 0 | 0 | ||||
Other accrued expenses and liabilities | 800.3 | 690.4 | ||||
Total current liabilities | 2,195.9 | 3,163.8 | ||||
Long-term debt, less current maturities | 12,159.8 | 11,759.8 | ||||
Intercompany notes payable | 0 | 0 | ||||
Deferred income taxes and other liabilities | 1,508.4 | 1,470.7 | ||||
Total liabilities | 15,864.1 | 16,394.3 | ||||
CBI stockholders’ equity | 11,377.5 | 12,551 | ||||
Noncontrolling interests | 313.5 | 286.2 | ||||
Total stockholders’ equity | 11,691 | $ 12,488.2 | 12,837.2 | 11,535.2 | $ 10,565.8 | 7,991.7 |
Total liabilities and stockholders’ equity | 27,555.1 | 29,231.5 | ||||
Eliminations [Member] | ||||||
Current assets: | ||||||
Cash and cash equivalents | 0 | 0 | 0 | 0 | ||
Accounts receivable | 0 | 0 | ||||
Inventories | (189.5) | (162.6) | ||||
Intercompany receivable | (85,785.6) | (83,538.5) | ||||
Prepaid expenses and other | (21.7) | (1.6) | ||||
Assets held for sale - current | 0 | |||||
Total current assets | (85,996.8) | (83,702.7) | ||||
Property, plant, and equipment | 0 | 0 | ||||
Investments in subsidiaries | (31,061) | (31,115.5) | ||||
Goodwill | 0 | 0 | ||||
Intangible assets | 0 | 0 | ||||
Intercompany notes receivable | (3,323.6) | (3,257.2) | ||||
Equity method investments | 0 | 0 | ||||
Securities measured at fair value | 0 | 0 | ||||
Deferred income taxes | (109.4) | (69.2) | ||||
Assets held for sale | 0 | |||||
Other assets | 0 | 0 | ||||
Total assets | (120,490.8) | (118,144.6) | ||||
Current liabilities: | ||||||
Short-term borrowings | 0 | 0 | ||||
Current maturities of long-term debt | 0 | 0 | ||||
Accounts payable | 0 | 0 | ||||
Intercompany payable | (85,785.6) | (83,538.5) | ||||
Other accrued expenses and liabilities | (49) | (24.5) | ||||
Total current liabilities | (85,834.6) | (83,563) | ||||
Long-term debt, less current maturities | 0 | 0 | ||||
Intercompany notes payable | (3,323.6) | (3,257.2) | ||||
Deferred income taxes and other liabilities | (109.4) | (56.9) | ||||
Total liabilities | (89,267.6) | (86,877.1) | ||||
CBI stockholders’ equity | (31,223.2) | (31,267.5) | ||||
Noncontrolling interests | 0 | 0 | ||||
Total stockholders’ equity | (31,223.2) | (31,267.5) | ||||
Total liabilities and stockholders’ equity | (120,490.8) | (118,144.6) | ||||
Parent Company [Member] | ||||||
Current assets: | ||||||
Cash and cash equivalents | 4 | 11 | 5 | 4.6 | ||
Accounts receivable | 488 | 435.6 | ||||
Inventories | 56.2 | 197.7 | ||||
Intercompany receivable | 29,836 | 29,712.5 | ||||
Prepaid expenses and other | 122.1 | 89.9 | ||||
Assets held for sale - current | 158.7 | |||||
Total current assets | 30,665 | 30,446.7 | ||||
Property, plant, and equipment | 66.9 | 85.3 | ||||
Investments in subsidiaries | 26,237.5 | 26,533.8 | ||||
Goodwill | 0 | 0 | ||||
Intangible assets | 0 | 0 | ||||
Intercompany notes receivable | 2,764.6 | 3,218.6 | ||||
Equity method investments | 0 | 0 | ||||
Securities measured at fair value | 0 | 0 | ||||
Deferred income taxes | 64.6 | 69.2 | ||||
Assets held for sale | 30.2 | |||||
Other assets | 29.3 | 17.3 | ||||
Total assets | 59,858.1 | 60,370.9 | ||||
Current liabilities: | ||||||
Short-term borrowings | 150.9 | 732.5 | ||||
Current maturities of long-term debt | 624.2 | 1,052.8 | ||||
Accounts payable | 47.3 | 59.6 | ||||
Intercompany payable | 34,441.2 | 33,787.6 | ||||
Other accrued expenses and liabilities | 376.2 | 374.3 | ||||
Total current liabilities | 35,639.8 | 36,006.8 | ||||
Long-term debt, less current maturities | 12,146.5 | 11,743.4 | ||||
Intercompany notes payable | 653 | 38.5 | ||||
Deferred income taxes and other liabilities | 41.3 | 31.2 | ||||
Total liabilities | 48,480.6 | 47,819.9 | ||||
CBI stockholders’ equity | 11,377.5 | 12,551 | ||||
Noncontrolling interests | 0 | 0 | ||||
Total stockholders’ equity | 11,377.5 | 12,551 | ||||
Total liabilities and stockholders’ equity | 59,858.1 | 60,370.9 | ||||
Subsidiary Guarantors [Member] | ||||||
Current assets: | ||||||
Cash and cash equivalents | 3.9 | 2.6 | 3.2 | 4.4 | ||
Accounts receivable | 409.6 | 370.6 | ||||
Inventories | 1,024.3 | 1,485.4 | ||||
Intercompany receivable | 35,676.9 | 33,775.4 | ||||
Prepaid expenses and other | 61.7 | 78.1 | ||||
Assets held for sale - current | 381.2 | |||||
Total current assets | 37,557.6 | 35,712.1 | ||||
Property, plant, and equipment | 633.2 | 786.8 | ||||
Investments in subsidiaries | 1,605.4 | 1,599.6 | ||||
Goodwill | 5,782.5 | 6,185.5 | ||||
Intangible assets | 271.2 | 605 | ||||
Intercompany notes receivable | 0 | 0 | ||||
Equity method investments | 0.5 | 1.7 | ||||
Securities measured at fair value | 0 | 0 | ||||
Deferred income taxes | 0 | 0 | ||||
Assets held for sale | 859.6 | |||||
Other assets | 340.7 | 1.1 | ||||
Total assets | 47,050.7 | 44,891.8 | ||||
Current liabilities: | ||||||
Short-term borrowings | 0 | 0 | ||||
Current maturities of long-term debt | 11.7 | 12.2 | ||||
Accounts payable | 212.3 | 141.3 | ||||
Intercompany payable | 32,851.1 | 31,428.9 | ||||
Other accrued expenses and liabilities | 300.4 | 184 | ||||
Total current liabilities | 33,375.5 | 31,766.4 | ||||
Long-term debt, less current maturities | 12.9 | 16 | ||||
Intercompany notes payable | 2,241.9 | 2,694.4 | ||||
Deferred income taxes and other liabilities | 848.4 | 540.5 | ||||
Total liabilities | 36,478.7 | 35,017.3 | ||||
CBI stockholders’ equity | 10,572 | 9,874.5 | ||||
Noncontrolling interests | 0 | 0 | ||||
Total stockholders’ equity | 10,572 | 9,874.5 | ||||
Total liabilities and stockholders’ equity | 47,050.7 | 44,891.8 | ||||
Subsidiary Nonguarantors [Member] | ||||||
Current assets: | ||||||
Cash and cash equivalents | 73.4 | 80 | $ 197.9 | $ 81.3 | ||
Accounts receivable | 56.1 | 40.7 | ||||
Inventories | 420.4 | 609.9 | ||||
Intercompany receivable | 20,272.7 | 20,050.6 | ||||
Prepaid expenses and other | 363 | 446.7 | ||||
Assets held for sale - current | 126.1 | |||||
Total current assets | 21,311.7 | 21,227.9 | ||||
Property, plant, and equipment | 4,441.5 | 4,395.2 | ||||
Investments in subsidiaries | 3,218.1 | 2,982.1 | ||||
Goodwill | 1,914.2 | 1,903.3 | ||||
Intangible assets | 2,515.8 | 2,593.1 | ||||
Intercompany notes receivable | 559 | 38.6 | ||||
Equity method investments | 3,003.3 | 3,463.9 | ||||
Securities measured at fair value | 1,572.2 | 3,234.7 | ||||
Deferred income taxes | 2,191.6 | 2,183.3 | ||||
Assets held for sale | 129.3 | |||||
Other assets | 280.4 | 91.3 | ||||
Total assets | 41,137.1 | 42,113.4 | ||||
Current liabilities: | ||||||
Short-term borrowings | 0 | 59 | ||||
Current maturities of long-term debt | 0.2 | 0.2 | ||||
Accounts payable | 349 | 415.8 | ||||
Intercompany payable | 18,493.3 | 18,322 | ||||
Other accrued expenses and liabilities | 172.7 | 156.6 | ||||
Total current liabilities | 19,015.2 | 18,953.6 | ||||
Long-term debt, less current maturities | 0.4 | 0.4 | ||||
Intercompany notes payable | 428.7 | 524.3 | ||||
Deferred income taxes and other liabilities | 728.1 | 955.9 | ||||
Total liabilities | 20,172.4 | 20,434.2 | ||||
CBI stockholders’ equity | 20,651.2 | 21,393 | ||||
Noncontrolling interests | 313.5 | 286.2 | ||||
Total stockholders’ equity | 20,964.7 | 21,679.2 | ||||
Total liabilities and stockholders’ equity | $ 41,137.1 | $ 42,113.4 |
Condensed Consolidating Finan_4
Condensed Consolidating Financial Information (Details 1) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||||
Aug. 31, 2019 | May 31, 2019 | Aug. 31, 2018 | May 31, 2018 | Aug. 31, 2019 | Aug. 31, 2018 | |
Condensed Consolidating Statement of Comprehensive Income | ||||||
Sales | $ 2,573.4 | $ 2,525.7 | $ 4,855.9 | $ 4,755.7 | ||
Excise taxes | (229.4) | (226.6) | (414.7) | (409.5) | ||
Net sales | 2,344 | 2,299.1 | 4,441.2 | 4,346.2 | ||
Cost of product sold | (1,158.1) | (1,130.9) | (2,226.6) | (2,129.4) | ||
Gross profit | 1,185.9 | 1,168.2 | 2,214.6 | 2,216.8 | ||
Selling, general, and administrative expenses | (466.4) | (403.2) | (872.4) | (826.4) | ||
Operating income (loss) | 719.5 | 765 | 1,342.2 | 1,390.4 | ||
Equity in earnings (losses) of equity method investees and subsidiaries | (485.6) | (2.1) | (588.6) | 2.6 | ||
Unrealized net gain (loss) on securities measured at fair value | (839.1) | 692.1 | (1,666.6) | 950.4 | ||
Net gain (loss) on sale of unconsolidated investment | 0 | (1.6) | (0.1) | 99.8 | ||
Interest income | 4.9 | 3.1 | 9.2 | 3.5 | ||
Intercompany interest income | 0 | 0 | 0 | 0 | ||
Interest expense | (116.5) | (91.1) | (235.4) | (179.3) | ||
Intercompany interest expense | 0 | 0 | 0 | 0 | ||
Loss on extinguishment of debt | (2.4) | 0 | (2.4) | 0 | ||
Income (loss) before income taxes | (719.2) | 1,365.4 | (1,141.7) | 2,267.4 | ||
(Provision for) benefit from income taxes | 202.2 | (214.1) | 387.6 | (369.8) | ||
Net income (loss) | (517) | $ (237.1) | 1,151.3 | $ 746.3 | (754.1) | 1,897.6 |
Net income (loss) attributable to noncontrolling interests | (8.2) | (1.8) | (16.5) | (4.3) | ||
Net income (loss) attributable to CBI | (525.2) | 1,149.5 | (770.6) | 1,893.3 | ||
Comprehensive income (loss) attributable to CBI | (646.3) | 1,223.5 | (893.3) | 1,791.6 | ||
Eliminations [Member] | ||||||
Condensed Consolidating Statement of Comprehensive Income | ||||||
Sales | (1,479.7) | (1,392.7) | (2,944.2) | (2,734.1) | ||
Excise taxes | 0 | 0 | 0 | 0 | ||
Net sales | (1,479.7) | (1,392.7) | (2,944.2) | (2,734.1) | ||
Cost of product sold | 1,519.5 | 1,432 | 2,908.4 | 2,740.7 | ||
Gross profit | 39.8 | 39.3 | (35.8) | 6.6 | ||
Selling, general, and administrative expenses | 4.9 | 5.2 | 9.6 | 11.5 | ||
Operating income (loss) | 44.7 | 44.5 | (26.2) | 18.1 | ||
Equity in earnings (losses) of equity method investees and subsidiaries | 266.8 | (1,403.4) | 299.3 | (2,444) | ||
Unrealized net gain (loss) on securities measured at fair value | 0 | 0 | 0 | 0 | ||
Net gain (loss) on sale of unconsolidated investment | 0 | 0 | 0 | |||
Interest income | 0 | 0 | 0 | 0 | ||
Intercompany interest income | (333.9) | (231.9) | (465.7) | (459.2) | ||
Interest expense | 0 | 0 | 0 | 0 | ||
Intercompany interest expense | 333.9 | 231.9 | 465.7 | 459.2 | ||
Loss on extinguishment of debt | 0 | 0 | ||||
Income (loss) before income taxes | 311.5 | (1,358.9) | 273.1 | (2,425.9) | ||
(Provision for) benefit from income taxes | (8.8) | (11.5) | 4.2 | 2 | ||
Net income (loss) | 302.7 | (1,370.4) | 277.3 | (2,423.9) | ||
Net income (loss) attributable to noncontrolling interests | 0 | 0 | 0 | 0 | ||
Net income (loss) attributable to CBI | 302.7 | (1,370.4) | 277.3 | (2,423.9) | ||
Comprehensive income (loss) attributable to CBI | 423.3 | (1,445.1) | 408.8 | (2,321.8) | ||
Parent Company [Member] | ||||||
Condensed Consolidating Statement of Comprehensive Income | ||||||
Sales | 737.5 | 808.6 | 1,366.7 | 1,491.2 | ||
Excise taxes | (91.5) | (100.9) | (168.4) | (179.7) | ||
Net sales | 646 | 707.7 | 1,198.3 | 1,311.5 | ||
Cost of product sold | (513.8) | (548) | (934.4) | (1,034.8) | ||
Gross profit | 132.2 | 159.7 | 263.9 | 276.7 | ||
Selling, general, and administrative expenses | (122.2) | (130.3) | (235.3) | (271.6) | ||
Operating income (loss) | 10 | 29.4 | 28.6 | 5.1 | ||
Equity in earnings (losses) of equity method investees and subsidiaries | (401.9) | 1,235.3 | (541.2) | 2,145.9 | ||
Unrealized net gain (loss) on securities measured at fair value | 0 | 0 | 0 | 0 | ||
Net gain (loss) on sale of unconsolidated investment | 0 | 0 | 0 | |||
Interest income | 0.5 | 0.1 | 0.5 | 0.1 | ||
Intercompany interest income | 70.3 | 67.7 | 109.2 | 135.3 | ||
Interest expense | (115.9) | (84.3) | (233.9) | (164.6) | ||
Intercompany interest expense | (130.5) | (137.4) | (219.1) | (271) | ||
Loss on extinguishment of debt | (2.4) | (2.4) | ||||
Income (loss) before income taxes | (569.9) | 1,110.8 | (858.3) | 1,850.8 | ||
(Provision for) benefit from income taxes | 44.7 | 38.7 | 87.7 | 42.5 | ||
Net income (loss) | (525.2) | 1,149.5 | (770.6) | 1,893.3 | ||
Net income (loss) attributable to noncontrolling interests | 0 | 0 | 0 | 0 | ||
Net income (loss) attributable to CBI | (525.2) | 1,149.5 | (770.6) | 1,893.3 | ||
Comprehensive income (loss) attributable to CBI | (646.3) | 1,223.5 | (893.3) | 1,791.6 | ||
Subsidiary Guarantors [Member] | ||||||
Condensed Consolidating Statement of Comprehensive Income | ||||||
Sales | 2,194.2 | 2,112.7 | 4,126.1 | 3,993.9 | ||
Excise taxes | (134.9) | (122.7) | (240.3) | (223.6) | ||
Net sales | 2,059.3 | 1,990 | 3,885.8 | 3,770.3 | ||
Cost of product sold | (1,606.7) | (1,498.1) | (3,057.4) | (2,820.2) | ||
Gross profit | 452.6 | 491.9 | 828.4 | 950.1 | ||
Selling, general, and administrative expenses | (272.1) | (213.4) | (535.8) | (452.1) | ||
Operating income (loss) | 180.5 | 278.5 | 292.6 | 498 | ||
Equity in earnings (losses) of equity method investees and subsidiaries | 0.2 | (13.5) | 5.3 | (26) | ||
Unrealized net gain (loss) on securities measured at fair value | 0 | 0 | 0 | 0 | ||
Net gain (loss) on sale of unconsolidated investment | 0 | 0 | 0 | |||
Interest income | 0.3 | 0 | 0.3 | 0 | ||
Intercompany interest income | 94.8 | 162.7 | 185.7 | 321.5 | ||
Interest expense | (0.2) | (0.2) | (0.5) | (0.5) | ||
Intercompany interest expense | (22.2) | (49.5) | (48.6) | (99) | ||
Loss on extinguishment of debt | 0 | 0 | ||||
Income (loss) before income taxes | 253.4 | 378 | 434.8 | 694 | ||
(Provision for) benefit from income taxes | (60.1) | (91) | (100.4) | (167.9) | ||
Net income (loss) | 193.3 | 287 | 334.4 | 526.1 | ||
Net income (loss) attributable to noncontrolling interests | 0 | 0 | 0 | 0 | ||
Net income (loss) attributable to CBI | 193.3 | 287 | 334.4 | 526.1 | ||
Comprehensive income (loss) attributable to CBI | 192.9 | 287 | 333.7 | 525.5 | ||
Subsidiary Nonguarantors [Member] | ||||||
Condensed Consolidating Statement of Comprehensive Income | ||||||
Sales | 1,121.4 | 997.1 | 2,307.3 | 2,004.7 | ||
Excise taxes | (3) | (3) | (6) | (6.2) | ||
Net sales | 1,118.4 | 994.1 | 2,301.3 | 1,998.5 | ||
Cost of product sold | (557.1) | (516.8) | (1,143.2) | (1,015.1) | ||
Gross profit | 561.3 | 477.3 | 1,158.1 | 983.4 | ||
Selling, general, and administrative expenses | (77) | (64.7) | (110.9) | (114.2) | ||
Operating income (loss) | 484.3 | 412.6 | 1,047.2 | 869.2 | ||
Equity in earnings (losses) of equity method investees and subsidiaries | (350.7) | 179.5 | (352) | 326.7 | ||
Unrealized net gain (loss) on securities measured at fair value | (839.1) | 692.1 | (1,666.6) | 950.4 | ||
Net gain (loss) on sale of unconsolidated investment | (1.6) | (0.1) | 99.8 | |||
Interest income | 4.1 | 3 | 8.4 | 3.4 | ||
Intercompany interest income | 168.8 | 1.5 | 170.8 | 2.4 | ||
Interest expense | (0.4) | (6.6) | (1) | (14.2) | ||
Intercompany interest expense | (181.2) | (45) | (198) | (89.2) | ||
Loss on extinguishment of debt | 0 | 0 | ||||
Income (loss) before income taxes | (714.2) | 1,235.5 | (991.3) | 2,148.5 | ||
(Provision for) benefit from income taxes | 226.4 | (150.3) | 396.1 | (246.4) | ||
Net income (loss) | (487.8) | 1,085.2 | (595.2) | 1,902.1 | ||
Net income (loss) attributable to noncontrolling interests | (8.2) | (1.8) | (16.5) | (4.3) | ||
Net income (loss) attributable to CBI | (496) | 1,083.4 | (611.7) | 1,897.8 | ||
Comprehensive income (loss) attributable to CBI | $ (616.2) | $ 1,158.1 | $ (742.5) | $ 1,796.3 |
Condensed Consolidating Finan_5
Condensed Consolidating Financial Information (Details 2) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Aug. 31, 2019 | Aug. 31, 2018 | Aug. 31, 2019 | Aug. 31, 2018 | |
Condensed Financial Statements, Captions [Line Items] | ||||
Net cash provided by (used in) operating activities | $ 1,419.4 | $ 1,338.5 | ||
CASH FLOWS FROM INVESTING ACTIVITIES | ||||
Purchases of property, plant, and equipment | $ (199.5) | $ (202.4) | (355.2) | (370.6) |
Purchases of businesses, net of cash acquired | (36.2) | (20.2) | ||
Investments in equity method investees and securities | (33) | (152.1) | ||
Net proceeds from (repayments of) intercompany notes | 0 | 0 | ||
Net contributions from (investment in) equity affiliates | 0 | 0 | ||
Other investing activities | (1.3) | (0.8) | ||
Net cash provided by (used in) investing activities | (425.7) | (388.8) | ||
Proceeds from sale of unconsolidated investment | 0 | 110.2 | ||
Proceeds from sales of assets | 0 | 44.7 | ||
CASH FLOWS FROM FINANCING ACTIVITIES | ||||
Dividends paid to parent company | 0 | 0 | ||
Net contributions from (investment in) equity affiliates | 0 | 0 | ||
Net proceeds from (repayments of) intercompany notes | 0 | 0 | ||
Principal payments of long-term debt | (1,331.5) | (23.5) | ||
Net proceeds from (repayments of) short-term borrowings | (640.5) | (32.4) | ||
Dividends paid | (285) | (279.1) | ||
Purchases of treasury stock | (50) | (504.3) | ||
Payments of minimum tax withholdings on stock-based payment awards | (14.2) | (13.5) | ||
Payments of debt issuance costs | (8) | (13.6) | ||
Proceeds from issuance of long-term debt | 1,291.3 | 12 | ||
Proceeds from shares issued under equity compensation plans | 32.9 | 21.5 | ||
Net cash provided by (used in) financing activities | (1,005) | (832.9) | ||
Effect of exchange rate changes on cash and cash equivalents | (1) | (1) | ||
Net increase (decrease) in cash and cash equivalents | (12.3) | 115.8 | ||
Cash and cash equivalents, beginning of period | 93.6 | 90.3 | ||
Cash and cash equivalents, end of period | 81.3 | 206.1 | 81.3 | 206.1 |
Eliminations [Member] | ||||
Condensed Financial Statements, Captions [Line Items] | ||||
Net cash provided by (used in) operating activities | (83.2) | 0 | ||
CASH FLOWS FROM INVESTING ACTIVITIES | ||||
Purchases of property, plant, and equipment | 0 | 0 | ||
Purchases of businesses, net of cash acquired | 0 | 0 | ||
Investments in equity method investees and securities | 0 | 0 | ||
Net proceeds from (repayments of) intercompany notes | 309.2 | (456.5) | ||
Net contributions from (investment in) equity affiliates | 85.4 | 26.9 | ||
Other investing activities | 0 | 0 | ||
Net cash provided by (used in) investing activities | 394.6 | (429.6) | ||
Proceeds from sale of unconsolidated investment | 0 | |||
Proceeds from sales of assets | 0 | |||
CASH FLOWS FROM FINANCING ACTIVITIES | ||||
Dividends paid to parent company | 109.7 | 29.5 | ||
Net contributions from (investment in) equity affiliates | (111.9) | (56.4) | ||
Net proceeds from (repayments of) intercompany notes | (309.2) | 456.5 | ||
Principal payments of long-term debt | 0 | 0 | ||
Net proceeds from (repayments of) short-term borrowings | 0 | 0 | ||
Dividends paid | 0 | 0 | ||
Purchases of treasury stock | 0 | 0 | ||
Payments of minimum tax withholdings on stock-based payment awards | 0 | 0 | ||
Payments of debt issuance costs | 0 | 0 | ||
Proceeds from issuance of long-term debt | 0 | 0 | ||
Proceeds from shares issued under equity compensation plans | 0 | 0 | ||
Net cash provided by (used in) financing activities | (311.4) | 429.6 | ||
Effect of exchange rate changes on cash and cash equivalents | 0 | 0 | ||
Net increase (decrease) in cash and cash equivalents | 0 | 0 | ||
Cash and cash equivalents, beginning of period | 0 | 0 | ||
Cash and cash equivalents, end of period | 0 | 0 | 0 | 0 |
Parent Company [Member] | ||||
Condensed Financial Statements, Captions [Line Items] | ||||
Net cash provided by (used in) operating activities | 430 | (84.4) | ||
CASH FLOWS FROM INVESTING ACTIVITIES | ||||
Purchases of property, plant, and equipment | (24.9) | (15.5) | ||
Purchases of businesses, net of cash acquired | 0 | 0 | ||
Investments in equity method investees and securities | 0 | 0 | ||
Net proceeds from (repayments of) intercompany notes | (309.2) | 456.5 | ||
Net contributions from (investment in) equity affiliates | (85.4) | (15.8) | ||
Other investing activities | 0.2 | 0 | ||
Net cash provided by (used in) investing activities | (419.3) | 425.5 | ||
Proceeds from sale of unconsolidated investment | 0 | |||
Proceeds from sales of assets | 0.3 | |||
CASH FLOWS FROM FINANCING ACTIVITIES | ||||
Dividends paid to parent company | 0 | 0 | ||
Net contributions from (investment in) equity affiliates | 0 | 0 | ||
Net proceeds from (repayments of) intercompany notes | 901.4 | 57.6 | ||
Principal payments of long-term debt | (1,318.8) | (4.5) | ||
Net proceeds from (repayments of) short-term borrowings | (581.5) | 381.7 | ||
Dividends paid | (285) | (279.1) | ||
Purchases of treasury stock | (50) | (504.3) | ||
Payments of minimum tax withholdings on stock-based payment awards | 0 | 0 | ||
Payments of debt issuance costs | (8) | (13.6) | ||
Proceeds from issuance of long-term debt | 1,291.3 | 0 | ||
Proceeds from shares issued under equity compensation plans | 32.9 | 21.5 | ||
Net cash provided by (used in) financing activities | (17.7) | (340.7) | ||
Effect of exchange rate changes on cash and cash equivalents | 0 | 0 | ||
Net increase (decrease) in cash and cash equivalents | (7) | 0.4 | ||
Cash and cash equivalents, beginning of period | 11 | 4.6 | ||
Cash and cash equivalents, end of period | 4 | 5 | 4 | 5 |
Subsidiaries Guarantors [Member] | ||||
Condensed Financial Statements, Captions [Line Items] | ||||
Net cash provided by (used in) operating activities | 9.8 | 778.1 | ||
CASH FLOWS FROM INVESTING ACTIVITIES | ||||
Purchases of property, plant, and equipment | (34.8) | (58.2) | ||
Purchases of businesses, net of cash acquired | 0 | (19.5) | ||
Investments in equity method investees and securities | 0 | 0 | ||
Net proceeds from (repayments of) intercompany notes | 0 | 0 | ||
Net contributions from (investment in) equity affiliates | 0 | (11.1) | ||
Other investing activities | 0.1 | 0 | ||
Net cash provided by (used in) investing activities | (34.7) | (50.5) | ||
Proceeds from sale of unconsolidated investment | 0 | |||
Proceeds from sales of assets | 38.3 | |||
CASH FLOWS FROM FINANCING ACTIVITIES | ||||
Dividends paid to parent company | 0 | 0 | ||
Net contributions from (investment in) equity affiliates | 0 | 32.7 | ||
Net proceeds from (repayments of) intercompany notes | 47.5 | (740.3) | ||
Principal payments of long-term debt | (7.6) | (8.5) | ||
Net proceeds from (repayments of) short-term borrowings | 0 | 0 | ||
Dividends paid | 0 | 0 | ||
Purchases of treasury stock | 0 | 0 | ||
Payments of minimum tax withholdings on stock-based payment awards | (13.7) | (12.7) | ||
Payments of debt issuance costs | 0 | 0 | ||
Proceeds from issuance of long-term debt | 0 | 0 | ||
Proceeds from shares issued under equity compensation plans | 0 | 0 | ||
Net cash provided by (used in) financing activities | 26.2 | (728.8) | ||
Effect of exchange rate changes on cash and cash equivalents | 0 | 0 | ||
Net increase (decrease) in cash and cash equivalents | 1.3 | (1.2) | ||
Cash and cash equivalents, beginning of period | 2.6 | 4.4 | ||
Cash and cash equivalents, end of period | 3.9 | 3.2 | 3.9 | 3.2 |
Subsidiary Nonguarantors [Member] | ||||
Condensed Financial Statements, Captions [Line Items] | ||||
Net cash provided by (used in) operating activities | 1,062.8 | 644.8 | ||
CASH FLOWS FROM INVESTING ACTIVITIES | ||||
Purchases of property, plant, and equipment | (295.5) | (296.9) | ||
Purchases of businesses, net of cash acquired | (36.2) | (0.7) | ||
Investments in equity method investees and securities | (33) | (152.1) | ||
Net proceeds from (repayments of) intercompany notes | 0 | 0 | ||
Net contributions from (investment in) equity affiliates | 0 | 0 | ||
Other investing activities | (1.6) | (0.8) | ||
Net cash provided by (used in) investing activities | (366.3) | (334.2) | ||
Proceeds from sale of unconsolidated investment | 110.2 | |||
Proceeds from sales of assets | 6.1 | |||
CASH FLOWS FROM FINANCING ACTIVITIES | ||||
Dividends paid to parent company | (109.7) | (29.5) | ||
Net contributions from (investment in) equity affiliates | 111.9 | 23.7 | ||
Net proceeds from (repayments of) intercompany notes | (639.7) | 226.2 | ||
Principal payments of long-term debt | (5.1) | (10.5) | ||
Net proceeds from (repayments of) short-term borrowings | (59) | (414.1) | ||
Dividends paid | 0 | 0 | ||
Purchases of treasury stock | 0 | 0 | ||
Payments of minimum tax withholdings on stock-based payment awards | (0.5) | (0.8) | ||
Payments of debt issuance costs | 0 | 0 | ||
Proceeds from issuance of long-term debt | 0 | 12 | ||
Proceeds from shares issued under equity compensation plans | 0 | 0 | ||
Net cash provided by (used in) financing activities | (702.1) | (193) | ||
Effect of exchange rate changes on cash and cash equivalents | (1) | (1) | ||
Net increase (decrease) in cash and cash equivalents | (6.6) | 116.6 | ||
Cash and cash equivalents, beginning of period | 80 | 81.3 | ||
Cash and cash equivalents, end of period | $ 73.4 | $ 197.9 | $ 73.4 | $ 197.9 |
Business Segment Information (D
Business Segment Information (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Aug. 31, 2019 | Aug. 31, 2018 | Aug. 31, 2019 | Aug. 31, 2018 | |
Cost of product sold | ||||
Net gain (loss) on undesignated derivative contracts | $ (16) | $ (29.3) | $ (35.7) | $ (15.8) |
Total cost of product sold | (1,158.1) | (1,130.9) | (2,226.6) | (2,129.4) |
Selling, general, and administrative expenses | ||||
Net gain (loss) on undesignated derivative contracts | (16) | (29.3) | (35.7) | (15.8) |
Total selling, general, and administrative expenses | (466.4) | (403.2) | (872.4) | (826.4) |
Comparable Adjustments [Member] | ||||
Cost of product sold | ||||
Strategic business development costs | (18) | 0 | (62.5) | 0 |
Accelerated depreciation | (1.8) | (1.6) | (5.3) | (5) |
Flow through of inventory step-up | (0.8) | (0.8) | (1.2) | (1.4) |
Recovery of (loss on) inventory write-down | 8.6 | 0 | 8.6 | (1.5) |
Total cost of product sold | (19.5) | (11.8) | (82) | (3.4) |
Selling, general, and administrative expenses | ||||
Restructuring and other strategic business development costs | (26.5) | (4.3) | (50.1) | (8.6) |
Transaction, integration, and other acquisition-related costs | (3.2) | (1) | (5.5) | (1) |
Impairment of intangible assets | (11) | 0 | (11) | 0 |
Deferred compensation | 0 | 0 | 0 | (16.3) |
Other gains (losses) | (12.3) | 8.5 | 1.1 | 8.5 |
Total selling, general, and administrative expenses | (53) | (3.9) | (65.5) | (24.5) |
Comparable Adjustments, Operating income (loss) | (72.5) | (15.7) | (147.5) | (27.9) |
Comparable Adjustments [Member] | Commodity derivative contracts [Member] | ||||
Cost of product sold | ||||
Settlements of undesignated commodity derivative contracts | (18.4) | (3.6) | (48.4) | (5.1) |
Net gain (loss) on undesignated derivative contracts | 10.9 | (5.8) | 26.8 | 9.6 |
Selling, general, and administrative expenses | ||||
Net gain (loss) on undesignated derivative contracts | 10.9 | (5.8) | 26.8 | 9.6 |
Comparable Adjustments [Member] | Foreign currency contracts [Member] | ||||
Cost of product sold | ||||
Net gain (loss) on undesignated derivative contracts | 0 | (7.1) | 0 | (7.1) |
Selling, general, and administrative expenses | ||||
Net gain (loss) on undesignated derivative contracts | 0 | $ (7.1) | 0 | $ (7.1) |
Operating Segments [Member] | Wine and Spirits [Member] | ||||
Selling, general, and administrative expenses | ||||
Restructuring and other strategic business development costs | (45.2) | (106.4) | ||
Gain on remeasurement of equity interest | 11.8 | |||
Increase in estimated fair value of contingent liability | $ (13.3) | $ (11.4) |
Business Segment Information _2
Business Segment Information (Details 1) $ in Millions, $ in Millions | 3 Months Ended | 6 Months Ended | ||||
Aug. 31, 2019USD ($) | Aug. 31, 2018USD ($) | Aug. 31, 2019USD ($) | Aug. 31, 2018USD ($) | Feb. 28, 2019USD ($) | Aug. 31, 2018AUD ($) | |
Segment Reporting Information [Line Items] | ||||||
Net sales | $ 2,344 | $ 2,299.1 | $ 4,441.2 | $ 4,346.2 | ||
Operating income (loss) | 719.5 | 765 | 1,342.2 | 1,390.4 | ||
Capital expenditures | 199.5 | 202.4 | 355.2 | 370.6 | ||
Depreciation and amortization | 83.9 | 86.1 | 172 | 171.8 | ||
Income (loss) from unconsolidated investments | (1,324.7) | 688.4 | (2,255.3) | 1,052.8 | ||
Equity method investments | 3,003.8 | 120.3 | 3,003.8 | 120.3 | $ 3,465.6 | |
Gain (Loss) on Investments, Excluding Other than Temporary Impairments [Abstract] | ||||||
Unrealized net gain (loss) on securities measured at fair value | (839.1) | 692.1 | (1,666.6) | 950.4 | ||
Net gain (loss) on sale of unconsolidated investment | 0 | (1.6) | (0.1) | 99.8 | ||
Equity in earnings (losses) of equity method investees | (485.6) | (2.1) | (588.6) | 2.6 | ||
Income (loss) from unconsolidated investments | (1,324.7) | 688.4 | (2,255.3) | 1,052.8 | ||
Transaction value of sale of Accolade Wine Investment | 113.6 | 113.6 | $ 149.1 | |||
Proceeds from sale of unconsolidated investment | 0 | 110.2 | ||||
Note receivable | 3.4 | 3.4 | ||||
Operating Segments [Member] | Beer [Member] | ||||||
Segment Reporting Information [Line Items] | ||||||
Net sales | 1,640.4 | 1,527.1 | 3,117.8 | 2,902.2 | ||
Operating income (loss) | 685.3 | 630.6 | 1,265.9 | 1,150.6 | ||
Capital expenditures | 170.7 | 159.8 | 272.8 | 296.3 | ||
Depreciation and amortization | 51.9 | 51 | 106.2 | 100.5 | ||
Operating Segments [Member] | Wine and Spirits [Member] | ||||||
Segment Reporting Information [Line Items] | ||||||
Net sales | 703.6 | 772 | 1,323.4 | 1,444 | ||
Operating income (loss) | 160.4 | 201.4 | 321.2 | 369.2 | ||
Capital expenditures | 16.2 | 31 | 43.1 | 58.8 | ||
Depreciation and amortization | 25 | 24.8 | 50 | 49.2 | ||
Income (loss) from unconsolidated investments | (1) | (1) | 3 | 3.8 | ||
Equity method investments | 76.8 | 79.1 | 76.8 | 79.1 | ||
Gain (Loss) on Investments, Excluding Other than Temporary Impairments [Abstract] | ||||||
Income (loss) from unconsolidated investments | (1) | (1) | 3 | 3.8 | ||
Operating Segments [Member] | Wine and Spirits [Member] | Wine [Member] | ||||||
Segment Reporting Information [Line Items] | ||||||
Net sales | 611.1 | 671 | 1,146.1 | 1,262.8 | ||
Operating Segments [Member] | Wine and Spirits [Member] | Spirits [Member] | ||||||
Segment Reporting Information [Line Items] | ||||||
Net sales | 92.5 | 101 | 177.3 | 181.2 | ||
Operating Segments [Member] | Corporate Operations and Other [Member] | ||||||
Segment Reporting Information [Line Items] | ||||||
Operating income (loss) | (53.7) | (51.3) | (97.4) | (101.5) | ||
Capital expenditures | 12.6 | 11.6 | 39.3 | 15.5 | ||
Depreciation and amortization | 5.2 | 8.7 | 10.5 | 17.1 | ||
Income (loss) from unconsolidated investments | (0.2) | (1.1) | (1.3) | (1.2) | ||
Equity method investments | 81 | 41.2 | 81 | 41.2 | ||
Gain (Loss) on Investments, Excluding Other than Temporary Impairments [Abstract] | ||||||
Income (loss) from unconsolidated investments | (0.2) | (1.1) | (1.3) | (1.2) | ||
Operating Segments [Member] | Canopy [Member] | ||||||
Segment Reporting Information [Line Items] | ||||||
Net sales | 67.7 | 138.4 | ||||
Operating income (loss) | (160.5) | (330.5) | ||||
Capital expenditures | 158.4 | 270.6 | ||||
Depreciation and amortization | 17.4 | 35 | ||||
Consolidation and Eliminations [Member] | ||||||
Segment Reporting Information [Line Items] | ||||||
Net sales | (67.7) | 0 | (138.4) | 0 | ||
Operating income (loss) | 160.5 | 0 | 330.5 | 0 | ||
Capital expenditures | (158.4) | 0 | (270.6) | 0 | ||
Depreciation and amortization | (17.4) | 0 | (35) | 0 | ||
Income (loss) from unconsolidated investments | (54.7) | 0 | (109.1) | 0 | ||
Equity method investments | 2,846 | 0 | 2,846 | 0 | ||
Gain (Loss) on Investments, Excluding Other than Temporary Impairments [Abstract] | ||||||
Income (loss) from unconsolidated investments | (54.7) | 0 | (109.1) | 0 | ||
Comparable Adjustments [Member] | ||||||
Segment Reporting Information [Line Items] | ||||||
Operating income (loss) | (72.5) | (15.7) | (147.5) | (27.9) | ||
Depreciation and amortization | 1.8 | 1.6 | 5.3 | 5 | ||
Income (loss) from unconsolidated investments | (1,268.8) | 690.5 | (2,147.9) | 1,050.2 | ||
Gain (Loss) on Investments, Excluding Other than Temporary Impairments [Abstract] | ||||||
Income (loss) from unconsolidated investments | $ (1,268.8) | $ 690.5 | $ (2,147.9) | $ 1,050.2 |
Business Segment Information _3
Business Segment Information (Details Textual) | 6 Months Ended |
Aug. 31, 2019divisionsegment | |
Segment Reporting [Abstract] | |
Number of business divisions | division | 3 |
Number of reportable operating segments | segment | 4 |
Uncategorized Items - stz831201
Label | Element | Value |
Accounting Standards Update 2016-16 [Member] | ||
New Accounting Pronouncement or Change in Accounting Principle, Cumulative Effect of Change on Equity or Net Assets | us-gaap_NewAccountingPronouncementOrChangeInAccountingPrincipleCumulativeEffectOfChangeOnEquityOrNetAssets1 | $ 2,242,000,000 |
Accounting Standards Update 2016-16 [Member] | Treasury Stock [Member] | ||
New Accounting Pronouncement or Change in Accounting Principle, Cumulative Effect of Change on Equity or Net Assets | us-gaap_NewAccountingPronouncementOrChangeInAccountingPrincipleCumulativeEffectOfChangeOnEquityOrNetAssets1 | 0 |
Accounting Standards Update 2016-16 [Member] | AOCI Attributable to Parent [Member] | ||
New Accounting Pronouncement or Change in Accounting Principle, Cumulative Effect of Change on Equity or Net Assets | us-gaap_NewAccountingPronouncementOrChangeInAccountingPrincipleCumulativeEffectOfChangeOnEquityOrNetAssets1 | 0 |
Accounting Standards Update 2016-16 [Member] | Retained Earnings [Member] | ||
New Accounting Pronouncement or Change in Accounting Principle, Cumulative Effect of Change on Equity or Net Assets | us-gaap_NewAccountingPronouncementOrChangeInAccountingPrincipleCumulativeEffectOfChangeOnEquityOrNetAssets1 | 2,242,000,000 |
Accounting Standards Update 2016-16 [Member] | Noncontrolling Interest [Member] | ||
New Accounting Pronouncement or Change in Accounting Principle, Cumulative Effect of Change on Equity or Net Assets | us-gaap_NewAccountingPronouncementOrChangeInAccountingPrincipleCumulativeEffectOfChangeOnEquityOrNetAssets1 | 0 |
Accounting Standards Update 2016-16 [Member] | Additional Paid-in Capital [Member] | ||
New Accounting Pronouncement or Change in Accounting Principle, Cumulative Effect of Change on Equity or Net Assets | us-gaap_NewAccountingPronouncementOrChangeInAccountingPrincipleCumulativeEffectOfChangeOnEquityOrNetAssets1 | 0 |
Accounting Standards Update 2016-16 [Member] | Common Class B [Member] | Common Stock [Member] | ||
New Accounting Pronouncement or Change in Accounting Principle, Cumulative Effect of Change on Equity or Net Assets | us-gaap_NewAccountingPronouncementOrChangeInAccountingPrincipleCumulativeEffectOfChangeOnEquityOrNetAssets1 | 0 |
Accounting Standards Update 2016-16 [Member] | Common Class A [Member] | Common Stock [Member] | ||
New Accounting Pronouncement or Change in Accounting Principle, Cumulative Effect of Change on Equity or Net Assets | us-gaap_NewAccountingPronouncementOrChangeInAccountingPrincipleCumulativeEffectOfChangeOnEquityOrNetAssets1 | $ 0 |