Business Segment Information

3 Months Ended

May 31, 2025

Segment Reporting [Abstract]

BUSINESS SEGMENT INFORMATION

BUSINESS SEGMENT INFORMATION

Our internal management financial reporting consists of two business divisions: (i) Beer and (ii) Wine and Spirits and we report our operating results in three segments: (i) Beer, (ii) Wine and Spirits, and (iii) Corporate Operations and Other. In the Beer segment, our portfolio consists of high-end imported beer brands and ABAs. We have an exclusive perpetual brand license to produce our Mexican beer portfolio and to import, market, and sell such portfolio in the U.S. In the Wine and Spirits segment, we sell a portfolio comprised of exclusively higher-end wine and spirits brands. Amounts included in the Corporate Operations and Other segment consist of costs of corporate communications, corporate development, corporate finance, corporate strategy and growth, executive management, human resources, internal audit, investor relations, IT, legal, and public affairs, as well as our investments such as those 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. Our CODM is our President and Chief Executive Officer. 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. Our CODM utilizes segment comparable operating income (loss) performance in deciding how to deploy capital in line with disciplined and balanced priorities. These priorities largely include investing in our people and our brands, making capital investments and strategic acquisitions, providing a cash dividend program, and from time-time time, repurchasing shares of our common stock. Our CODM also monitors budgeted versus actual results in assessing segment operating performance and understanding underlying business trends.

Management excludes 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 the incentive compensation of segment management are evaluated based on core segment operating income (loss) which does not include the impact of these Comparable Adjustments, collectively referred to as comparable operating income (loss). We evaluate segment operating performance based on comparable operating income (loss) of the respective business units.

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 2025 Annual Report. Segment information is as follows:

	Beer			Wine and Spirits			Corporate Operations and Other		Consolidated
(in millions)
For the Three Months Ended May 31, 2025
Net sales	$	2,234.5		$	280.5		$	—	$	2,515.0
Cost of product sold (1)	(1,047.5)			(184.4)			—
Marketing	(200.5)			(34.9)			—
% Net sales	9.0		%	12.4		%
General and administrative expenses (1)	(113.1)			(67.2)			(57.5)
Comparable operating income (loss) (1)	873.4			(6.0)			(57.5)		809.9
Operating margin	39.1		%	(2.1)		%
Comparable adjustments (2)									(96.1)
Operating income (loss)									713.8
Income (loss) from unconsolidated investments (3)									(3.5)
Interest expense, net (4)									(98.9)
Income (loss) before income taxes									$	611.4

	Beer			Wine and Spirits			Corporate Operations and Other		Consolidated
(in millions)
Capital expenditures	$	173.2		$	18.0		$	1.6	$	192.8
Depreciation and amortization	$	76.8		$	22.2		$	6.5	$	105.5
% Net sales	3.4		%	7.9		%
For the Three Months Ended May 31, 2024
Net sales	$	2,272.8		$	389.0		$	—	$	2,661.8
Cost of product sold (1)	(1,059.7)			(220.3)			—
Marketing	(190.3)			(40.9)			—
% Net sales	8.4		%	10.5		%
General and administrative expenses (1)	(99.8)			(68.1)			(58.7)
Comparable operating income (loss) (1)	923.0			59.7			(58.7)		924.0
Operating margin	40.6		%	15.3		%
Comparable adjustments (2)									17.6
Operating income (loss)									941.6
Income (loss) from unconsolidated investments (3)									82.0
Interest expense, net (4)									(102.8)
Income (loss) before income taxes									$	920.8
Capital expenditures	$	314.4		$	49.6		$	11.3	$	375.3
Depreciation and amortization	$	86.4		$	21.3		$	4.2	$	111.9
% Net sales	3.8		%	5.5		%

(1)Amounts are determined and presented on a non-GAAP basis and are intended to reflect our core operations.

(2)Comparable Adjustments that impacted comparability in our segment operating income (loss) for each period are as follows:

	For the Three Months Ended May 31,
	2025		2024
(in millions)
Cost of product sold
Net gain (loss) on undesignated commodity derivative contracts	$	(17.7)	$	14.6
Flow through of inventory step-up	(0.9)		(1.1)
Strategic business development costs	(0.4)		—
Settlements of undesignated commodity derivative contracts	2.5		8.5
Comparable Adjustments, Cost of product sold	(16.5)		22.0
Selling, general, and administrative expenses
2025 Restructuring Initiative	(13.3)		—
Transition services agreements activity	(5.5)		(2.8)
Strategic business reconfiguration costs	(5.2)		(1.8)
Transaction, integration, and other acquisition-related costs	(2.1)		(0.2)
Other gains (losses) (i)	(1.4)		0.4
Comparable Adjustments, selling, general, and administrative expenses	(27.5)		(4.4)
Assets held for sale impairment and related expenses	(52.1)		—
Comparable Adjustments, Operating income (loss)	$	(96.1)	$	17.6

(i)	Primarily includes the following:
		For the Three Months Ended May 31,
		2025		2024
	(in millions)
	Gain (loss) on sale of business	$	(1.4)	$	—

(3)	Income (loss) from unconsolidated investments consists of:
			For the Three Months Ended May 31,
			2025		2024
		(in millions)
		Equity in earnings (losses) from equity method investees and related activities	$	(3.5)	$	(1.3)
		Net gain in connection with Exchangeable Shares	—		83.3
			$	(3.5)	$	82.0
(4)	Interest expense, net consists of:
			For the Three Months Ended May 31,
			2025		2024
		(in millions)
		Interest expense	$	(100.6)	$	(104.8)
		Interest income	1.7		2.0
			$	(98.9)	$	(102.8)