Business Segment Information (Tables)

6 Months Ended

Aug. 31, 2021

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,
	2021		2020		2021		2020
(in millions)
Cost of product sold

Net gain (loss) on undesignated commodity derivative contracts	$	48.1	$	(9.4)	$	24.0	$	17.4
Flow through of inventory step-up	0.1		(0.1)		0.1		(0.1)
Settlements of undesignated commodity derivative contracts	(12.3)		23.6		(8.9)		13.2
Strategic business development costs	(2.6)		(25.1)		—		(0.8)
COVID-19 incremental costs	—		(5.5)		—		(0.9)


Total cost of product sold	33.3		(16.5)		15.2		28.8

Selling, general, and administrative expenses
Restructuring and other strategic business development costs	(0.1)		(8.9)		0.8		(5.8)
Net gain (loss) on foreign currency derivative contracts	—		(8.0)		—		—
COVID-19 incremental costs	—		(4.6)		—		1.9
Transaction, integration, and other acquisition-related costs	—		(3.9)		—		(3.1)


Other gains (losses) (1)	(6.1)		4.5		(7.1)		(2.9)
Total selling, general, and administrative expenses	(6.2)		(20.9)		(6.3)		(9.9)

Impairment of brewery construction in progress	(665.9)		—		—		—
Impairment of assets held for sale	—		(3.0)		—		22.0


Comparable Adjustments, Operating income (loss)	$	(638.8)	$	(40.4)	$	8.9	$	40.9


(1)	Includes the following:
		For the Six Months Ended August 31,				For the Three Months Ended August 31,
		2021		2020		2021		2020
	Transition services agreements activity	$	(7.2)	$	—	$	(4.9)	$	—
	Gain on vineyard sale	$	—	$	8.8	$	—	$	—
	Gain (loss) on sale of the Black Velvet Canadian Whisky business	$	—	$	(3.6)	$	—	$	(3.0)

Segment information

Segment information is as follows:


	For the Six Months Ended August 31,				For the Three Months Ended August 31,
	2021		2020		2021		2020
(in millions)
Beer
Net sales	$	3,433.3	$	3,020.0	$	1,861.3	$	1,635.9
Segment operating income (loss)	$	1,366.1	$	1,273.5	$	693.0	$	695.7


Capital expenditures	$	295.8	$	198.5	$	210.0	$	90.2
Depreciation and amortization	$	118.5	$	92.9	$	64.5	$	48.6

Wine and Spirits
Net sales:
Wine	$	844.9	$	1,044.5	$	447.2	$	544.9
Spirits	119.4		159.3		62.6		79.6
Net sales	$	964.3	$	1,203.8	$	509.8	$	624.5
Segment operating income (loss)	$	204.4	$	325.5	$	100.2	$	161.5
Income (loss) from unconsolidated investments	$	0.2	$	1.1	$	(1.1)	$	(2.4)

Equity method investments (1)	$	126.7	$	119.2	$	126.7	$	119.2

Capital expenditures	$	54.0	$	37.4	$	28.3	$	27.9
Depreciation and amortization	$	39.6	$	45.3	$	19.7	$	22.8

Corporate Operations and Other
Segment operating income (loss)	$	(117.4)	$	(109.9)	$	(62.9)	$	(59.4)
Income (loss) from unconsolidated investments	$	(0.8)	$	0.5	$	(0.2)	$	0.3

Equity method investments	$	112.1	$	99.6	$	112.1	$	99.6

Capital expenditures	$	3.6	$	41.9	$	1.2	$	15.5
Depreciation and amortization	$	6.5	$	7.2	$	3.2	$	1.6

Canopy
Net sales	$	228.1	$	160.0	$	110.8	$	79.7
Segment operating income (loss)	$	(337.0)	$	(857.6)	$	(152.8)	$	(124.4)


Capital expenditures	$	37.5	$	114.4	$	16.5	$	44.4
Depreciation and amortization	$	43.3	$	54.6	$	20.4	$	24.5

Consolidation and Eliminations
Net sales	$	(228.1)	$	(160.0)	$	(110.8)	$	(79.7)
Operating income (loss)	$	337.0	$	857.6	$	152.8	$	124.4
Income (loss) from unconsolidated investments	$	(74.2)	$	(65.8)	$	(29.9)	$	(34.1)

Equity method investments	$	2,580.2	$	2,713.1	$	2,580.2	$	2,713.1

Capital expenditures	$	(37.5)	$	(114.4)	$	(16.5)	$	(44.4)
Depreciation and amortization	$	(43.3)	$	(54.6)	$	(20.4)	$	(24.5)

Comparable Adjustments

Operating income (loss)	$	(638.8)	$	(40.4)	$	8.9	$	40.9
Income (loss) from unconsolidated investments	$	(1,295.2)	$	(587.7)	$	(439.6)	$	(44.5)


	For the Six Months Ended August 31,				For the Three Months Ended August 31,
	2021		2020		2021		2020
(in millions)
Consolidated
Net sales	$	4,397.6	$	4,223.8	$	2,371.1	$	2,260.4
Operating income (loss)	$	814.3	$	1,448.7	$	739.2	$	838.7
Income (loss) from unconsolidated investments (2)	$	(1,370.0)	$	(651.9)	$	(470.8)	$	(80.7)

Equity method investments (1)	$	2,819.0	$	2,931.9	$	2,819.0	$	2,931.9

Capital expenditures	$	353.4	$	277.8	$	239.5	$	133.6
Depreciation and amortization	$	164.6	$	145.4	$	87.4	$	73.0


(1)	Equity method investments balance at August 31, 2020, exclude amounts reclassified to assets held for sale.
(2)	Income (loss) from unconsolidated investments consists of:
			For the Six Months Ended August 31,				For the Three Months Ended August 31,
			2021		2020		2021		2020
		(in millions)
		Unrealized net gain (loss) on securities measured at fair value	$	(1,335.1)	$	(244.9)	$	(590.0)	$	(47.6)
		Equity in earnings (losses) from Canopy and related activities	(35.3)		(408.6)		120.5		(31.0)
		Equity in earnings (losses) from other equity method investees	0.4		1.6		(1.3)		(2.1)


			$	(1,370.0)	$	(651.9)	$	(470.8)	$	(80.7)