Delaware
|
001-08495
|
16-0716709
|
(State or other jurisdiction
of incorporation)
|
(Commission
File Number)
|
(IRS Employer
Identification No.)
|
Not Applicable
|
(Former name or former address, if changed since last report.)
|
o
|
Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
|
o
|
Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
|
o
|
Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
|
o
|
Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))
|
Item 2.02
|
Results of Operations and Financial Condition.
|
Item 7.01
|
Regulation FD Disclosure.
|
Item 8.01
|
Other Events.
|
Item 9.01
|
Financial Statements and Exhibits.
|
(a)
|
Financial statements of businesses acquired
.
|
(b)
|
Pro forma financial information
.
|
(c)
|
Shell company transactions
.
|
(d)
|
Exhibits
.
|
Exhibit No.
|
Description
|
99.1
|
News Release of Constellation Brands, Inc. dated April 6, 2017.
|
Date: April 6, 2017
|
CONSTELLATION BRANDS, INC.
|
|
|
|
|
|
By:
|
/s/ David Klein
|
|
|
David Klein
|
|
|
Executive Vice President and
Chief Financial Officer
|
CONTACTS
|
|
|
Media
Mike McGrew: 773-251-4934
Amy Martin: 585-678-7141
|
|
Investor Relations
Patty Yahn-Urlaub: 585-678-7483
Bob Czudak: 585-678-7170
|
•
|
Achieves
fiscal 2017
reported basis EPS of
$7.52
and record comparable basis EPS of
$6.76
|
•
|
Generates record
$1.7 billion
of operating cash flow and
$789 million
of free cash flow for
fiscal 2017
|
•
|
Provides
fiscal 2018
outlook; expects reported basis EPS of
$7.65 - $7.95
and comparable basis EPS of
$7.70 - $8.00
|
•
|
Projects operating cash flow target of approximately
$2.0 billion
, total capital expenditure estimate of
$1.175
-
$1.275 billion
and free cash flow of
$725
-
$825 million
for
fiscal 2018
|
•
|
Completes expansion to 25 million hectoliters ahead of schedule at Nava Brewery
|
•
|
Declares quarterly dividend of
$0.52
per share Class A and
$0.47
per share Class B common stock, an increase of approximately
30%
|
•
|
Repurchases approximately
7.4 million
shares of common stock for
$1.1 billion
during
fiscal 2017
at an average price of
$151.57
per share
|
Fiscal 2017 Financial Highlights*
|
|
|
|
|
|
|
|
(in millions, except per share data)
|
|
|
|
|
|
|
|
|
Reported
|
|
% Change
|
|
Comparable
|
|
% Change
|
Net sales
|
$7,332
|
|
12%
|
|
$7,332
|
|
12%
|
|
|
|
|
|
|
|
|
Operating income
|
$2,399
|
|
36%
|
|
$2,195
|
|
18%
|
|
|
|
|
|
|
|
|
Operating margin
|
32.7%
|
|
+570 bps
|
|
29.9%
|
|
+140 bps
|
|
|
|
|
|
|
|
|
Earnings before interest and taxes (EBIT)
|
NA
|
|
NA
|
|
$2,224
|
|
18%
|
|
|
|
|
|
|
|
|
Net income attributable to CBI
|
$1,535
|
|
46%
|
|
$1,381
|
|
25%
|
|
|
|
|
|
|
|
|
Diluted net income per share attributable to CBI (EPS)
|
$7.52
|
|
45%
|
|
$6.76
|
|
24%
|
|
Reported Basis
|
Comparable Basis
|
||||||
|
FY18
Estimate |
FY17
Actual |
FY18
Estimate |
FY17
Actual |
||||
Fiscal Year Ending Feb. 28
|
$7.65 - $7.95
|
|
$7.52
|
|
$7.70 - $8.00
|
|
$6.76
|
|
•
|
Interest expense: approximately $340 - $350 million
|
•
|
Tax rate: approximately 22 percent
|
•
|
Weighted average diluted shares outstanding: approximately 201 million
|
•
|
Operating cash flow: approximately
$1.9
-
$2.1 billion
|
•
|
Capital expenditures: approximately
$1.175
-
$1.275 billion
, including approximately
$1.0 billion
targeted for Mexico beer operations expansion activities
|
•
|
Free cash flow: approximately
$725
-
$825 million
|
•
|
beer operations expansion activities, including construction, expansion and optimization activities at our Mexican breweries and joint venture glass plant, take place with expected scope, on expected terms and timetables, and with receipt of any necessary permits and regulatory approvals;
|
•
|
accuracy of supply projections, including those relating to construction, expansion and optimization of our Mexican breweries and joint venture glass plant, and glass sourcing;
|
•
|
timeframe and actual costs associated with beer supply; construction, expansion and optimization activities at our Mexican breweries and joint venture glass plant; and glass sourcing may vary from
|
•
|
net sales, operating income, operating cash flow, free cash flow, effective tax rate and capital expenditures to support long-term growth may vary from management’s current estimates;
|
•
|
timing and volume amount of product shipments to wholesalers may vary from current expectations due to actual consumer demand;
|
•
|
accuracy of projections associated with the acquisitions of the Meiomi wine brand, Ballast Point, The Prisoner Wine Company brand portfolio, High West, the Charles Smith Wine Collection, and the Obregon brewery, and the projections associated with the sale of the Canadian wine business;
|
•
|
the impact of and the ability to realize the anticipated benefits of acquisitions, including as a result of difficulty in integrating the businesses of the companies involved;
|
•
|
the exact duration of the share repurchase implementation and the amount, timing and source of funds of any additional share repurchases;
|
•
|
amount and timing of future dividends are subject to the determination and discretion of the Board of Directors;
|
•
|
ability to use cash flow to fund dividends and acquisitions could be affected by unanticipated increases in net total debt, inability to generate cash flow at the levels anticipated, and failure to generate expected earnings;
|
•
|
raw material and water supply, production or shipment difficulties could adversely affect the company’s ability to supply its customers;
|
•
|
increased competitive activities in the form of pricing, advertising and promotions could adversely impact consumer demand for the company’s products and/or result in lower than expected sales or higher than expected expenses;
|
•
|
general economic, geo-political, domestic, international and regulatory conditions, instability in world financial markets, or unanticipated environmental liabilities and costs;
|
•
|
changes to international trade agreements and tariffs, accounting standards and tax laws, and other factors which could impact the company’s reported financial position, results of operations or effective tax rate;
|
•
|
changes in interest rates and the inherent unpredictability of currency fluctuations, commodity prices and raw material costs;
|
•
|
accuracy of the bases for forecasts relating to joint ventures and associated costs, losses, purchase obligations and capital investment requirements; and
|
•
|
other factors and uncertainties disclosed in the company’s filings with the Securities and Exchange Commission, including its Annual Report on Form 10-K for the fiscal year ended Feb. 29, 2016, which could cause actual future performance to differ from current expectations.
|
Constellation Brands, Inc. and Subsidiaries
CONDENSED CONSOLIDATED BALANCE SHEETS
(in millions)
(unaudited)
|
|||||||
|
February 28,
2017 |
|
February 29,
2016 |
||||
Assets
|
|
|
|
||||
|
|
|
|
||||
Current assets:
|
|
|
|
||||
Cash and cash equivalents
|
$
|
177.4
|
|
|
$
|
83.1
|
|
Accounts receivable
|
737.0
|
|
|
732.5
|
|
||
Inventories
|
1,955.1
|
|
|
1,851.6
|
|
||
Prepaid expenses and other
|
360.5
|
|
|
310.4
|
|
||
|
|
|
|
||||
Total current assets
|
3,230.0
|
|
|
2,977.6
|
|
||
|
|
|
|
||||
Property, plant and equipment
|
3,932.8
|
|
|
3,333.4
|
|
||
Goodwill
|
7,920.5
|
|
|
7,138.6
|
|
||
Intangible assets
|
3,377.7
|
|
|
3,403.8
|
|
||
Other assets
|
141.4
|
|
|
111.6
|
|
||
|
|
|
|
||||
Total assets
|
$
|
18,602.4
|
|
|
$
|
16,965.0
|
|
|
|
|
|
||||
Liabilities and stockholders’ equity
|
|
|
|
||||
|
|
|
|
||||
Current liabilities:
|
|
|
|
||||
Notes payable to banks
|
$
|
606.5
|
|
|
$
|
408.3
|
|
Current maturities of long-term debt
|
910.9
|
|
|
856.7
|
|
||
Accounts payable
|
559.8
|
|
|
429.3
|
|
||
Accrued excise taxes
|
44.6
|
|
|
33.6
|
|
||
Other accrued expenses and liabilities
|
575.8
|
|
|
544.4
|
|
||
|
|
|
|
||||
Total current liabilities
|
2,697.6
|
|
|
2,272.3
|
|
||
|
|
|
|
||||
Long-term debt, less current maturities
|
7,720.7
|
|
|
6,816.2
|
|
||
Deferred income taxes
|
1,133.6
|
|
|
1,022.2
|
|
||
Other liabilities
|
165.7
|
|
|
162.5
|
|
||
|
|
|
|
||||
Total liabilities
|
11,717.6
|
|
|
10,273.2
|
|
||
|
|
|
|
||||
CBI stockholders’ equity
|
6,891.2
|
|
|
6,559.6
|
|
||
Noncontrolling interests
|
(6.4
|
)
|
|
132.2
|
|
||
|
|
|
|
|
|||
Total stockholders’ equity
|
6,884.8
|
|
|
6,691.8
|
|
||
|
|
|
|
||||
Total liabilities and stockholders’ equity
|
$
|
18,602.4
|
|
|
$
|
16,965.0
|
|
Constellation Brands, Inc. and Subsidiaries
CONSOLIDATED STATEMENTS OF OPERATIONS
(in millions, except per share data)
(unaudited)
|
|||||||||||||||
|
Three Months Ended
|
|
Years Ended
|
||||||||||||
|
February 28,
2017 |
|
February 29,
2016 |
|
February 28,
2017 |
|
February 29,
2016 |
||||||||
Sales
|
$
|
1,793.1
|
|
|
$
|
1,700.5
|
|
|
$
|
8,061.6
|
|
|
$
|
7,223.8
|
|
Excise taxes
|
(165.1
|
)
|
|
(157.3
|
)
|
|
(730.1
|
)
|
|
(675.4
|
)
|
||||
Net sales
|
1,628.0
|
|
|
1,543.2
|
|
|
7,331.5
|
|
|
6,548.4
|
|
||||
|
|
|
|
|
|
|
|
||||||||
Cost of product sold
|
(840.3
|
)
|
|
(847.1
|
)
|
|
(3,802.1
|
)
|
|
(3,606.1
|
)
|
||||
Gross profit
|
787.7
|
|
|
696.1
|
|
|
3,529.4
|
|
|
2,942.3
|
|
||||
|
|
|
|
|
|
|
|
||||||||
Selling, general and administrative expenses
|
(348.3
|
)
|
|
(285.0
|
)
|
|
(1,392.4
|
)
|
|
(1,177.2
|
)
|
||||
Gain on sale of business
|
262.4
|
|
|
—
|
|
|
262.4
|
|
|
—
|
|
||||
Operating income
|
701.8
|
|
|
411.1
|
|
|
2,399.4
|
|
|
1,765.1
|
|
||||
|
|
|
|
|
|
|
|
||||||||
Earnings (losses) from unconsolidated investments
|
(0.9
|
)
|
|
22.6
|
|
|
27.3
|
|
|
51.1
|
|
||||
Interest expense
|
(77.0
|
)
|
|
(83.5
|
)
|
|
(333.3
|
)
|
|
(313.9
|
)
|
||||
Loss on write-off of debt issuance costs
|
—
|
|
|
—
|
|
|
—
|
|
|
(1.1
|
)
|
||||
Income before income taxes
|
623.9
|
|
|
350.2
|
|
|
2,093.4
|
|
|
1,501.2
|
|
||||
|
|
|
|
|
|
|
|
||||||||
Provision for income taxes
|
(162.0
|
)
|
|
(104.9
|
)
|
|
(554.2
|
)
|
|
(440.6
|
)
|
||||
Net income
|
461.9
|
|
|
245.3
|
|
|
1,539.2
|
|
|
1,060.6
|
|
||||
Net income attributable to noncontrolling interests
|
(9.9
|
)
|
|
(1.9
|
)
|
|
(4.1
|
)
|
|
(5.7
|
)
|
||||
Net income attributable to CBI
|
$
|
452.0
|
|
|
$
|
243.4
|
|
|
$
|
1,535.1
|
|
|
$
|
1,054.9
|
|
|
|
|
|
|
|
|
|
||||||||
Net income per common share attributable to CBI:
|
|
|
|
|
|
|
|
||||||||
Basic – Class A Common Stock
|
$
|
2.34
|
|
|
$
|
1.23
|
|
|
$
|
7.79
|
|
|
$
|
5.42
|
|
Basic – Class B Convertible Common Stock
|
$
|
2.12
|
|
|
$
|
1.12
|
|
|
$
|
7.07
|
|
|
$
|
4.92
|
|
|
|
|
|
|
|
|
|
||||||||
Diluted – Class A Common Stock
|
$
|
2.26
|
|
|
$
|
1.19
|
|
|
$
|
7.52
|
|
|
$
|
5.18
|
|
Diluted – Class B Convertible Common Stock
|
$
|
2.09
|
|
|
$
|
1.10
|
|
|
$
|
6.93
|
|
|
$
|
4.79
|
|
|
|
|
|
|
|
|
|
||||||||
Weighted average common shares outstanding:
|
|
|
|
|
|
|
|
||||||||
Basic – Class A Common Stock
|
172.155
|
|
|
176.024
|
|
|
175.934
|
|
|
173.383
|
|
||||
Basic – Class B Convertible Common Stock
|
23.353
|
|
|
23.353
|
|
|
23.353
|
|
|
23.363
|
|
||||
|
|
|
|
|
|
|
|
||||||||
Diluted – Class A Common Stock
|
199.868
|
|
|
205.191
|
|
|
204.099
|
|
|
203.821
|
|
||||
Diluted – Class B Convertible Common Stock
|
23.353
|
|
|
23.353
|
|
|
23.353
|
|
|
23.363
|
|
||||
|
|
|
|
|
|
|
|
||||||||
Cash dividends declared per common share:
|
|
|
|
|
|
|
|
||||||||
Class A Common Stock
|
$
|
0.40
|
|
|
$
|
0.31
|
|
|
$
|
1.60
|
|
|
$
|
1.24
|
|
Class B Convertible Common Stock
|
$
|
0.36
|
|
|
$
|
0.28
|
|
|
$
|
1.44
|
|
|
$
|
1.12
|
|
Constellation Brands, Inc. and Subsidiaries
CONSOLIDATED STATEMENTS OF CASH FLOWS
(in millions)
(unaudited)
|
|||||||
|
Years Ended
|
||||||
|
February 28,
2017 |
|
February 29,
2016 |
||||
Cash flows from operating activities
|
|
|
|
||||
Net income
|
$
|
1,539.2
|
|
|
$
|
1,060.6
|
|
Adjustments to reconcile net income to net cash provided by operating activities:
|
|
|
|
||||
Depreciation
|
237.5
|
|
|
180.3
|
|
||
Deferred tax provision
|
128.7
|
|
|
251.0
|
|
||
Amortization and impairment of intangible assets
|
56.4
|
|
|
40.7
|
|
||
Stock-based compensation
|
56.1
|
|
|
54.0
|
|
||
Amortization of debt issuance costs
|
12.7
|
|
|
12.0
|
|
||
Gain on sale of business
|
(262.4
|
)
|
|
—
|
|
||
Change in operating assets and liabilities, net of effects from purchases of businesses:
|
|
|
|
||||
Accounts receivable
|
(49.4
|
)
|
|
(129.8
|
)
|
||
Inventories
|
(151.0
|
)
|
|
10.1
|
|
||
Prepaid expenses and other current assets
|
(71.6
|
)
|
|
45.9
|
|
||
Accounts payable
|
115.9
|
|
|
24.7
|
|
||
Accrued excise taxes
|
16.2
|
|
|
5.1
|
|
||
Other accrued expenses and liabilities
|
106.0
|
|
|
(116.8
|
)
|
||
Other
|
(38.3
|
)
|
|
(24.1
|
)
|
||
Total adjustments
|
156.8
|
|
|
353.1
|
|
||
Net cash provided by operating activities
|
1,696.0
|
|
|
1,413.7
|
|
||
|
|
|
|
||||
Cash flows from investing activities
|
|
|
|
||||
Purchases of businesses, net of cash acquired
|
(1,111.0
|
)
|
|
(1,316.4
|
)
|
||
Purchases of property, plant and equipment
|
(907.4
|
)
|
|
(891.3
|
)
|
||
Proceeds from sale of business
|
575.3
|
|
|
—
|
|
||
Other investing activities
|
(18.7
|
)
|
|
0.3
|
|
||
Net cash used in investing activities
|
(1,461.8
|
)
|
|
(2,207.4
|
)
|
||
|
|
|
|
||||
Cash flows from financing activities
|
|
|
|
||||
Purchases of treasury stock
|
(1,122.7
|
)
|
|
(33.8
|
)
|
||
Principal payments of long-term debt
|
(971.8
|
)
|
|
(208.7
|
)
|
||
Dividends paid
|
(315.1
|
)
|
|
(241.6
|
)
|
||
Payments of minimum tax withholdings on stock-based payment awards
|
(64.9
|
)
|
|
(38.6
|
)
|
||
Payments of debt issuance and other financing costs
|
(14.1
|
)
|
|
(13.3
|
)
|
||
Proceeds from issuance of long-term debt
|
1,965.6
|
|
|
610.0
|
|
||
Net proceeds from notes payable
|
197.1
|
|
|
360.6
|
|
||
Excess tax benefits from stock-based payment awards
|
131.4
|
|
|
203.4
|
|
||
Proceeds from shares issued under equity compensation plans
|
59.7
|
|
|
113.0
|
|
||
Proceeds from noncontrolling interests
|
—
|
|
|
25.0
|
|
||
Net cash provided by (used in) financing activities
|
(134.8
|
)
|
|
776.0
|
|
||
|
|
|
|
||||
Effect of exchange rate changes on cash and cash equivalents
|
(5.1
|
)
|
|
(9.3
|
)
|
||
|
|
|
|
||||
Net increase (decrease) in cash and cash equivalents
|
94.3
|
|
|
(27.0
|
)
|
||
Cash and cash equivalents, beginning of year
|
83.1
|
|
|
110.1
|
|
||
Cash and cash equivalents, end of year
|
$
|
177.4
|
|
|
$
|
83.1
|
|
|
Three Months Ended
|
|
|
|
|
|
Constant
Currency Percent Change (1) |
|
Years Ended
|
|
|
|
|
|
Constant
Currency Percent Change (1) |
||||||||||||||||||
|
February 28,
2017 |
|
February 29,
2016 |
|
Percent
Change
|
|
Currency
Impact
|
|
|
February 28,
2017 |
|
February 29,
2016 |
|
Percent
Change
|
|
Currency
Impact
|
|
||||||||||||||||
Consolidated net sales
|
$
|
1,628.0
|
|
|
$
|
1,543.2
|
|
|
5
|
%
|
|
—
|
%
|
|
5
|
%
|
|
$
|
7,331.5
|
|
|
$
|
6,548.4
|
|
|
12
|
%
|
|
—
|
%
|
|
12
|
%
|
Less: Meiomi
(2)
|
—
|
|
|
—
|
|
|
|
|
|
|
|
|
(52.5
|
)
|
|
—
|
|
|
|
|
|
|
|
||||||||||
Less: Ballast Point
(3)
|
(4.7
|
)
|
|
—
|
|
|
|
|
|
|
|
|
(124.9
|
)
|
|
—
|
|
|
|
|
|
|
|
||||||||||
Less: Prisoner
(4)
|
(13.5
|
)
|
|
—
|
|
|
|
|
|
|
|
|
(47.3
|
)
|
|
—
|
|
|
|
|
|
|
|
||||||||||
Less: October Wine and Spirits Acquisitions
(5)
|
(18.8
|
)
|
|
—
|
|
|
|
|
|
|
|
|
(24.2
|
)
|
|
—
|
|
|
|
|
|
|
|
||||||||||
Less: Canadian Divestiture
(6)
|
—
|
|
|
(62.6
|
)
|
|
|
|
|
|
|
|
—
|
|
|
(62.6
|
)
|
|
|
|
|
|
|
||||||||||
Consolidated organic net sales
|
$
|
1,591.0
|
|
|
$
|
1,480.6
|
|
|
7
|
%
|
|
—
|
%
|
|
7
|
%
|
|
$
|
7,082.6
|
|
|
$
|
6,485.8
|
|
|
9
|
%
|
|
—
|
%
|
|
9
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Beer net sales
|
$
|
891.2
|
|
|
$
|
806.0
|
|
|
11
|
%
|
|
—
|
%
|
|
11
|
%
|
|
$
|
4,229.3
|
|
|
$
|
3,622.6
|
|
|
17
|
%
|
|
—
|
%
|
|
17
|
%
|
Less: Ballast Point
(3)
|
(4.7
|
)
|
|
—
|
|
|
|
|
|
|
|
|
(124.9
|
)
|
|
—
|
|
|
|
|
|
|
|
||||||||||
Beer organic net sales
|
$
|
886.5
|
|
|
$
|
806.0
|
|
|
10
|
%
|
|
—
|
%
|
|
10
|
%
|
|
$
|
4,104.4
|
|
|
$
|
3,622.6
|
|
|
13
|
%
|
|
—
|
%
|
|
13
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Wine and Spirits net sales
|
$
|
736.8
|
|
|
$
|
737.2
|
|
|
—
|
%
|
|
—
|
%
|
|
—
|
%
|
|
$
|
3,102.2
|
|
|
$
|
2,925.8
|
|
|
6
|
%
|
|
—
|
%
|
|
6
|
%
|
Less: Meiomi
(2)
|
—
|
|
|
—
|
|
|
|
|
|
|
|
|
(52.5
|
)
|
|
—
|
|
|
|
|
|
|
|
||||||||||
Less: Prisoner
(4)
|
(13.5
|
)
|
|
—
|
|
|
|
|
|
|
|
|
(47.3
|
)
|
|
—
|
|
|
|
|
|
|
|
||||||||||
Less: October Wine and Spirits Acquisitions
(5)
|
(18.8
|
)
|
|
—
|
|
|
|
|
|
|
|
|
(24.2
|
)
|
|
—
|
|
|
|
|
|
|
|
||||||||||
Less: Canadian Divestiture
(6)
|
—
|
|
|
(62.6
|
)
|
|
|
|
|
|
|
|
—
|
|
|
(62.6
|
)
|
|
|
|
|
|
|
||||||||||
Wine and Spirits organic net sales
|
$
|
704.5
|
|
|
$
|
674.6
|
|
|
4
|
%
|
|
—
|
%
|
|
4
|
%
|
|
$
|
2,978.2
|
|
|
$
|
2,863.2
|
|
|
4
|
%
|
|
—
|
%
|
|
4
|
%
|
(1)
|
May not sum due to rounding as each item is computed independently.
|
(2)
|
For the period March 1, 2016, through August 2, 2016, included in the year ended February 28, 2017.
|
(3)
|
For the periods December 1, 2016, through December 15, 2016, and March 1, 2016, through December 15, 2016, included in the three months and year ended February 28, 2017, respectively.
|
(4)
|
For the periods December 1, 2016, through February 28, 2017, and April 29, 2016, through February 28, 2017, included in the three months and year ended February 28, 2017, respectively.
|
(5)
|
For the period December 1, 2016, through February 28, 2017, and the applicable periods for October 2016 through February 28, 2017, included in the three months and year ended February 28, 2017, respectively.
|
(6)
|
For the period December 17, 2015, through February 29, 2016, included in the three months and year ended February 29, 2016.
|
(1)
|
Previously reported Beer shipment and depletion volumes were restated in the fourth quarter of fiscal 2017 for an immaterial error associated with the conversion of 7-ounce Coronita case equivalents to 12-ounce case equivalents.
|
(2)
|
Includes an adjustment to remove Ballast Point shipment volumes for the periods December 1, 2016, through December 15, 2016, and March 1, 2016, through December 15, 2016, for the three months and year ended February 28, 2017, respectively.
|
(3)
|
Depletions represent distributor shipments of our respective branded products to retail customers, based on third-party data.
|
(4)
|
Includes depletion of Ballast Point products for the prior comparable periods of December 1, 2015, through December 15, 2015, and March 1, 2015, through December 15, 2015, for the three months and year ended February 29, 2016, respectively.
|
(5)
|
Includes an adjustment to remove:
|
•
|
Meiomi shipment volumes for the period March 1, 2016, through August 2, 2016, for the year ended February 28, 2017; and
|
•
|
Prisoner shipment volumes for the periods December 1, 2016, through February 28, 2017, and April 29, 2016, through February 28, 2017, for the three months and year ended February 28, 2017, respectively.
|
(6)
|
Includes an adjustment to remove High West and Charles Smith shipment volumes for the period December 1, 2016, through February 28, 2017, and the applicable periods for October 2016 through February 28, 2017, for the three months and year ended February 28, 2017, respectively.
|
(7)
|
Includes an adjustment to remove shipment volumes associated with the business sold in connection with the Canadian Divestiture for the period December 17, 2015, through February 29, 2016, for the three months and year ended February 29, 2016.
|
(8)
|
U.S. Domestic Focus Brands include the following brands: Black Box, Clos du Bois, Estancia, Franciscan Estate, Inniskillin, Kim Crawford, Mark West, Meiomi, Mount Veeder, Nobilo, Robert Mondavi, Ruffino, Saved, Simi, SVEDKA Vodka, The Dreaming Tree, The Prisoner Brands and Wild Horse.
|
(9)
|
Includes depletion of:
|
•
|
Meiomi products for the prior comparable period of March 1, 2015, through August 2, 2015, for the year ended February 29, 2016; and
|
•
|
Prisoner products for the prior comparable periods of December 1, 2015, through February 29, 2016, and April 29, 2015, through February 29, 2016, for the three months and year ended February 29, 2016, respectively.
|
(10)
|
Includes depletion of High West and Charles Smith products for the prior comparable period of December 1, 2015, through February 29, 2016, and the applicable prior comparable periods for October 2015 through February 29, 2016, for the three months and year ended February 29, 2016, respectively.
|
Constellation Brands, Inc. and Subsidiaries
SUMMARIZED SEGMENT AND EARNINGS FROM UNCONSOLIDATED INVESTMENTS INFORMATION
(in millions)
(unaudited)
|
|||||||||||||||||||||
|
Three Months Ended
|
|
|
|
Years Ended
|
|
|
||||||||||||||
|
February 28,
2017 |
|
February 29,
2016 |
|
Percent
Change
|
|
February 28,
2017 |
|
February 29,
2016 |
|
Percent
Change
|
||||||||||
Beer
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Segment net sales
|
$
|
891.2
|
|
|
$
|
806.0
|
|
|
11
|
%
|
|
$
|
4,229.3
|
|
|
$
|
3,622.6
|
|
|
17
|
%
|
Segment gross profit
|
$
|
464.2
|
|
|
$
|
401.7
|
|
|
16
|
%
|
|
$
|
2,151.3
|
|
|
$
|
1,776.0
|
|
|
21
|
%
|
% Net sales
|
52.1
|
%
|
|
49.8
|
%
|
|
|
|
50.9
|
%
|
|
49.0
|
%
|
|
|
||||||
Segment operating income
|
$
|
338.7
|
|
|
$
|
280.1
|
|
|
21
|
%
|
|
$
|
1,534.4
|
|
|
$
|
1,264.1
|
|
|
21
|
%
|
% Net sales
|
38.0
|
%
|
|
34.8
|
%
|
|
|
|
36.3
|
%
|
|
34.9
|
%
|
|
|
||||||
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Wine and Spirits
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Wine net sales
|
$
|
636.5
|
|
|
$
|
659.9
|
|
|
(4
|
%)
|
|
$
|
2,739.3
|
|
|
$
|
2,591.4
|
|
|
6
|
%
|
Spirits net sales
|
100.3
|
|
|
77.3
|
|
|
30
|
%
|
|
362.9
|
|
|
334.4
|
|
|
9
|
%
|
||||
Segment net sales
|
$
|
736.8
|
|
|
$
|
737.2
|
|
|
—
|
%
|
|
$
|
3,102.2
|
|
|
$
|
2,925.8
|
|
|
6
|
%
|
Segment gross profit
|
$
|
322.2
|
|
|
$
|
313.9
|
|
|
3
|
%
|
|
$
|
1,360.7
|
|
|
$
|
1,235.0
|
|
|
10
|
%
|
% Net sales
|
43.7
|
%
|
|
42.6
|
%
|
|
|
|
43.9
|
%
|
|
42.2
|
%
|
|
|
||||||
Segment operating income
|
$
|
196.1
|
|
|
$
|
184.2
|
|
|
6
|
%
|
|
$
|
800.8
|
|
|
$
|
727.0
|
|
|
10
|
%
|
% Net sales
|
26.6
|
%
|
|
25.0
|
%
|
|
|
|
|
25.8
|
%
|
|
24.8
|
%
|
|
|
|||||
Segment earnings (losses) from unconsolidated investments
|
$
|
0.8
|
|
|
$
|
(1.9
|
)
|
|
NM
|
|
|
$
|
29.2
|
|
|
$
|
26.6
|
|
|
10
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Corporate Operations and Other
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Segment operating loss
|
$
|
(40.0
|
)
|
|
$
|
(29.6
|
)
|
|
35
|
%
|
|
$
|
(139.9
|
)
|
|
$
|
(125.5
|
)
|
|
11
|
%
|
Segment losses from unconsolidated investments
|
$
|
—
|
|
|
$
|
—
|
|
|
NA
|
|
|
$
|
(0.2
|
)
|
|
$
|
—
|
|
|
NA
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Consolidated operating income
|
$
|
701.8
|
|
|
$
|
411.1
|
|
|
|
|
$
|
2,399.4
|
|
|
$
|
1,765.1
|
|
|
|
||
Comparable Adjustments
|
(207.0
|
)
|
|
23.6
|
|
|
|
|
(204.1
|
)
|
|
100.5
|
|
|
|
||||||
Comparable operating income
|
$
|
494.8
|
|
|
$
|
434.7
|
|
|
|
|
$
|
2,195.3
|
|
|
$
|
1,865.6
|
|
|
|
||
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Consolidated earnings (losses) from unconsolidated investments
|
$
|
(0.9
|
)
|
|
$
|
22.6
|
|
|
|
|
$
|
27.3
|
|
|
$
|
51.1
|
|
|
|
||
Comparable Adjustments
|
1.7
|
|
|
(24.5
|
)
|
|
|
|
1.7
|
|
|
(24.5
|
)
|
|
|
||||||
Comparable earnings (losses) from unconsolidated investments
|
$
|
0.8
|
|
|
$
|
(1.9
|
)
|
|
|
|
$
|
29.0
|
|
|
$
|
26.6
|
|
|
|
||
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Consolidated EBIT
|
$
|
495.6
|
|
|
$
|
432.8
|
|
|
|
|
$
|
2,224.3
|
|
|
$
|
1,892.2
|
|
|
|
|
Three Months Ended February 28, 2017
|
|
Three Months Ended February 29, 2016
|
|
Percent
Change -
Reported
Basis
(GAAP)
|
|
Percent
Change -
Comparable
Basis
(Non-GAAP)
|
||||||||||||||||||
|
Reported
Basis
(GAAP)
|
Comparable
Adjustments |
Comparable
Basis
(Non-GAAP)
|
|
Reported
Basis
(GAAP)
|
Comparable
Adjustments |
Comparable
Basis
(Non-GAAP)
|
|
|||||||||||||||||
Net sales
|
$
|
1,628.0
|
|
|
$
|
1,628.0
|
|
|
$
|
1,543.2
|
|
|
$
|
1,543.2
|
|
|
5
|
%
|
|
5
|
%
|
||||
Cost of product sold
|
(840.3
|
)
|
$
|
(1.3
|
)
|
|
|
(847.1
|
)
|
$
|
19.5
|
|
|
|
|
|
|
||||||||
Gross profit
|
787.7
|
|
(1.3
|
)
|
$
|
786.4
|
|
|
696.1
|
|
19.5
|
|
$
|
715.6
|
|
|
13
|
%
|
|
10
|
%
|
||||
Selling, general and administrative expenses
|
(348.3
|
)
|
56.7
|
|
|
|
(285.0
|
)
|
4.1
|
|
|
|
|
|
|
||||||||||
Gain on sale of business
|
262.4
|
|
(262.4
|
)
|
|
|
—
|
|
|
|
|
|
|
|
|||||||||||
Operating income
|
701.8
|
|
(207.0
|
)
|
$
|
494.8
|
|
|
411.1
|
|
23.6
|
|
$
|
434.7
|
|
|
71
|
%
|
|
14
|
%
|
||||
Earnings (losses) from unconsolidated investments
|
(0.9
|
)
|
1.7
|
|
|
|
22.6
|
|
(24.5
|
)
|
|
|
|
|
|
||||||||||
EBIT
|
|
|
$
|
495.6
|
|
|
|
|
$
|
432.8
|
|
|
NA
|
|
|
15
|
%
|
||||||||
Interest expense
|
(77.0
|
)
|
|
|
|
(83.5
|
)
|
|
|
|
|
|
|
||||||||||||
Income before income taxes
|
623.9
|
|
(205.3
|
)
|
$
|
418.6
|
|
|
350.2
|
|
(0.9
|
)
|
$
|
349.3
|
|
|
78
|
%
|
|
20
|
%
|
||||
Provision for income taxes
|
(162.0
|
)
|
49.3
|
|
|
|
(104.9
|
)
|
0.9
|
|
|
|
|
|
|
||||||||||
Net income
|
461.9
|
|
(156.0
|
)
|
|
|
|
245.3
|
|
—
|
|
|
|
|
|
|
|
|
|
||||||
Net income attributable to noncontrolling interests
|
(9.9
|
)
|
|
|
|
(1.9
|
)
|
|
|
|
|
|
|
||||||||||||
Net income attributable to CBI
|
$
|
452.0
|
|
$
|
(156.0
|
)
|
$
|
296.0
|
|
|
$
|
243.4
|
|
$
|
—
|
|
$
|
243.4
|
|
|
86
|
%
|
|
22
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
EPS
(1)
|
$
|
2.26
|
|
$
|
(0.78
|
)
|
$
|
1.48
|
|
|
$
|
1.19
|
|
$
|
—
|
|
$
|
1.19
|
|
|
90
|
%
|
|
24
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Weighted average common shares
outstanding – diluted
|
199.868
|
|
|
199.868
|
|
|
205.191
|
|
|
205.191
|
|
|
|
|
|
||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Gross margin
|
48.4
|
%
|
|
48.3
|
%
|
|
45.1
|
%
|
|
46.4
|
%
|
|
|
|
|
||||||||||
Operating margin
|
43.1
|
%
|
|
30.4
|
%
|
|
26.6
|
%
|
|
28.2
|
%
|
|
|
|
|
||||||||||
Effective tax rate
|
26.0
|
%
|
|
26.9
|
%
|
|
30.0
|
%
|
|
29.8
|
%
|
|
|
|
|
|
Three Months Ended February 28, 2017
|
|
Three Months Ended February 29, 2016
|
|||||||||||||||||||
Comparable Adjustments
|
Acquisitions,
Divestitures and Related Costs
(2)
|
Other
(3)
|
Total
|
|
Acquisitions,
Divestitures and Related Costs
(2)
|
Restructuring and Related Charges
|
Other
(3)
|
Total
|
||||||||||||||
Cost of product sold
|
$
|
(3.7
|
)
|
$
|
5.0
|
|
$
|
1.3
|
|
|
$
|
(15.0
|
)
|
$
|
—
|
|
$
|
(4.5
|
)
|
$
|
(19.5
|
)
|
Selling, general and administrative expenses
|
$
|
(19.1
|
)
|
$
|
(37.6
|
)
|
$
|
(56.7
|
)
|
|
$
|
(2.7
|
)
|
$
|
(1.4
|
)
|
$
|
—
|
|
$
|
(4.1
|
)
|
Gain on sale of business
|
$
|
262.4
|
|
$
|
—
|
|
$
|
262.4
|
|
|
$
|
—
|
|
$
|
—
|
|
$
|
—
|
|
$
|
—
|
|
Operating income (loss)
|
$
|
239.6
|
|
$
|
(32.6
|
)
|
$
|
207.0
|
|
|
$
|
(17.7
|
)
|
$
|
(1.4
|
)
|
$
|
(4.5
|
)
|
$
|
(23.6
|
)
|
Earnings (losses) from unconsolidated investments
|
$
|
—
|
|
$
|
(1.7
|
)
|
$
|
(1.7
|
)
|
|
$
|
—
|
|
$
|
—
|
|
$
|
24.5
|
|
$
|
24.5
|
|
(Provision for) benefit from income taxes
|
$
|
(62.2
|
)
|
$
|
12.9
|
|
$
|
(49.3
|
)
|
|
$
|
6.1
|
|
$
|
0.5
|
|
$
|
(7.5
|
)
|
$
|
(0.9
|
)
|
Net income (loss) attributable to CBI
|
$
|
177.4
|
|
$
|
(21.4
|
)
|
$
|
156.0
|
|
|
$
|
(11.6
|
)
|
$
|
(0.9
|
)
|
$
|
12.5
|
|
$
|
—
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
EPS
(1)
|
$
|
0.89
|
|
$
|
(0.11
|
)
|
$
|
0.78
|
|
|
$
|
(0.06
|
)
|
$
|
—
|
|
$
|
0.06
|
|
$
|
—
|
|
(1)
|
May not sum due to rounding as each item is computed independently.
|
(2)
|
For the
three months ended
February 28, 2017
, acquisitions, divestitures and related costs consist of a net gain recognized in connection with the Canadian Divestiture and related activities, partially offset by transaction, integration and other acquisition-related costs recognized primarily in connection with the acquisitions of Charles Smith, the June 2013 beer business and Prisoner. For the
three months ended
February 29, 2016
, acquisitions, divestitures and related costs consist of transaction, integration and other acquisition-related costs recognized primarily in connection with the June 2013 beer business and December 2014 glass production plant acquisitions, and Meiomi.
|
(3)
|
For the
three months ended
February 28, 2017
, other consists primarily of impairment of certain intangible assets. For the
three months ended
February 29, 2016
, other consists of dividend income from a retained interest in a previously divested business, partially offset by a net loss from the mark to fair value of undesignated commodity derivative contracts.
|
|
Year Ended February 28, 2017
|
|
Year Ended February 29, 2016
|
|
Percent
Change -
Reported
Basis
(GAAP)
|
|
Percent
Change -
Comparable
Basis
(Non-GAAP)
|
||||||||||||||||||
|
Reported
Basis
(GAAP)
|
Comparable
Adjustments
|
Comparable
Basis
(Non-GAAP)
|
|
Reported
Basis
(GAAP)
|
Comparable
Adjustments |
Comparable
Basis
(Non-GAAP)
|
|
|||||||||||||||||
Net sales
|
$
|
7,331.5
|
|
|
$
|
7,331.5
|
|
|
$
|
6,548.4
|
|
|
$
|
6,548.4
|
|
|
12
|
%
|
|
12
|
%
|
||||
Cost of product sold
|
(3,802.1
|
)
|
$
|
(17.4
|
)
|
|
|
(3,606.1
|
)
|
$
|
68.7
|
|
|
|
|
|
|
||||||||
Gross profit
|
3,529.4
|
|
(17.4
|
)
|
$
|
3,512.0
|
|
|
2,942.3
|
|
68.7
|
|
$
|
3,011.0
|
|
|
20
|
%
|
|
17
|
%
|
||||
Selling, general and administrative expenses
|
(1,392.4
|
)
|
75.7
|
|
|
|
(1,177.2
|
)
|
31.8
|
|
|
|
|
|
|
||||||||||
Gain on sale of business
|
262.4
|
|
(262.4
|
)
|
|
|
—
|
|
|
|
|
|
|
|
|||||||||||
Operating income
|
2,399.4
|
|
(204.1
|
)
|
$
|
2,195.3
|
|
|
1,765.1
|
|
100.5
|
|
$
|
1,865.6
|
|
|
36
|
%
|
|
18
|
%
|
||||
Earnings from unconsolidated investments
|
27.3
|
|
1.7
|
|
|
|
51.1
|
|
(24.5
|
)
|
|
|
|
|
|
||||||||||
EBIT
|
|
|
$
|
2,224.3
|
|
|
|
|
$
|
1,892.2
|
|
|
NA
|
|
|
18
|
%
|
||||||||
Interest expense
|
(333.3
|
)
|
|
|
|
(313.9
|
)
|
|
|
|
|
|
|
||||||||||||
Loss on write-off of debt issuance costs
|
—
|
|
|
|
|
(1.1
|
)
|
1.1
|
|
|
|
|
|
|
|||||||||||
Income before income taxes
|
2,093.4
|
|
(202.4
|
)
|
$
|
1,891.0
|
|
|
1,501.2
|
|
77.1
|
|
$
|
1,578.3
|
|
|
39
|
%
|
|
20
|
%
|
||||
Provision for income taxes
|
(554.2
|
)
|
48.0
|
|
|
|
(440.6
|
)
|
(25.8
|
)
|
|
|
|
|
|
||||||||||
Net income
|
1,539.2
|
|
(154.4
|
)
|
|
|
1,060.6
|
|
51.3
|
|
|
|
|
|
|
||||||||||
Net income attributable to noncontrolling interests
|
(4.1
|
)
|
|
|
|
(5.7
|
)
|
0.3
|
|
|
|
|
|
|
|||||||||||
Net income attributable to CBI
|
$
|
1,535.1
|
|
$
|
(154.4
|
)
|
$
|
1,380.7
|
|
|
$
|
1,054.9
|
|
$
|
51.6
|
|
$
|
1,106.5
|
|
|
46
|
%
|
|
25
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
EPS
(1)
|
$
|
7.52
|
|
$
|
(0.76
|
)
|
$
|
6.76
|
|
|
$
|
5.18
|
|
$
|
0.25
|
|
$
|
5.43
|
|
|
45
|
%
|
|
24
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Weighted average common shares
outstanding – diluted |
204.099
|
|
|
204.099
|
|
|
203.821
|
|
|
203.821
|
|
|
|
|
|
||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Gross margin
|
48.1
|
%
|
|
47.9
|
%
|
|
44.9
|
%
|
|
46.0
|
%
|
|
|
|
|
||||||||||
Operating margin
|
32.7
|
%
|
|
29.9
|
%
|
|
27.0
|
%
|
|
28.5
|
%
|
|
|
|
|
||||||||||
Effective tax rate
|
26.5
|
%
|
|
26.8
|
%
|
|
29.3
|
%
|
|
29.6
|
%
|
|
|
|
|
|
Year Ended February 28, 2017
|
|
Year Ended February 29, 2016
|
||||||||||||||||||||||
Comparable Adjustments
|
Acquisitions, Divestitures and Related Costs
(4)
|
Restructuring and Related Charges
(5)
|
Other
(6)
|
Total
|
|
Acquisitions, Divestitures and Related Costs
(4)
|
Restructuring and Related Charges
(5)
|
Other
(6)
|
Total
|
||||||||||||||||
Cost of product sold
|
$
|
(22.3
|
)
|
$
|
—
|
|
$
|
39.7
|
|
$
|
17.4
|
|
|
$
|
(50.1
|
)
|
$
|
—
|
|
$
|
(18.6
|
)
|
$
|
(68.7
|
)
|
Selling, general and administrative expenses
|
$
|
(34.6
|
)
|
$
|
(0.9
|
)
|
$
|
(40.2
|
)
|
$
|
(75.7
|
)
|
|
$
|
(15.4
|
)
|
$
|
(16.4
|
)
|
$
|
—
|
|
$
|
(31.8
|
)
|
Gain on sale of business
|
$
|
262.4
|
|
$
|
—
|
|
$
|
—
|
|
$
|
262.4
|
|
|
$
|
—
|
|
$
|
—
|
|
$
|
—
|
|
$
|
—
|
|
Operating income (loss)
|
$
|
205.5
|
|
$
|
(0.9
|
)
|
$
|
(0.5
|
)
|
$
|
204.1
|
|
|
$
|
(65.5
|
)
|
$
|
(16.4
|
)
|
$
|
(18.6
|
)
|
$
|
(100.5
|
)
|
Earnings (losses) from unconsolidated investments
|
$
|
—
|
|
$
|
—
|
|
$
|
(1.7
|
)
|
$
|
(1.7
|
)
|
|
$
|
—
|
|
$
|
—
|
|
$
|
24.5
|
|
$
|
24.5
|
|
Loss on write-off of debt issuance costs
|
$
|
—
|
|
$
|
—
|
|
$
|
—
|
|
$
|
—
|
|
|
$
|
—
|
|
$
|
—
|
|
$
|
(1.1
|
)
|
$
|
(1.1
|
)
|
(Provision for) benefit from income taxes
|
$
|
(48.9
|
)
|
$
|
0.3
|
|
$
|
0.6
|
|
$
|
(48.0
|
)
|
|
$
|
21.8
|
|
$
|
6.0
|
|
$
|
(2.0
|
)
|
$
|
25.8
|
|
Net loss attributable to noncontrolling interests
|
$
|
—
|
|
$
|
—
|
|
$
|
—
|
|
$
|
—
|
|
|
$
|
(0.3
|
)
|
$
|
—
|
|
$
|
—
|
|
$
|
(0.3
|
)
|
Net income (loss) attributable to CBI
|
$
|
156.6
|
|
$
|
(0.6
|
)
|
$
|
(1.6
|
)
|
$
|
154.4
|
|
|
$
|
(44.0
|
)
|
$
|
(10.4
|
)
|
$
|
2.8
|
|
$
|
(51.6
|
)
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
EPS
(1)
|
$
|
0.77
|
|
$
|
—
|
|
$
|
(0.01
|
)
|
$
|
0.76
|
|
|
$
|
(0.22
|
)
|
$
|
(0.05
|
)
|
$
|
0.01
|
|
$
|
(0.25
|
)
|
(4)
|
For the
year ended
February 28, 2017
, acquisitions, divestitures and related costs consist of a net gain recognized in connection with the Canadian Divestiture and related activities, partially offset by transaction, integration and other acquisition-related costs recognized primarily in connection with the acquisitions of Prisoner, the June 2013 beer business and Meiomi. For the
year ended
February 29, 2016
, acquisitions, divestitures and related costs consist of transaction, integration and other acquisition-related costs recognized primarily in connection with the June 2013 beer business and December 2014 glass production plant acquisitions, and Meiomi.
|
(5)
|
For the
year ended
February 28, 2017
, and
February 29, 2016
, restructuring and related charges consist of costs recognized in connection with the company’s plan initiated in May 2015 to streamline and simplify processes, and shift resources and investment to long-term, profitable growth opportunities across the business (the “Fiscal 2016 Plan”).
|
(6)
|
For the
year ended
February 28, 2017
, other consists primarily of a net gain from the mark to fair value of undesignated commodity derivative contracts, partially offset by an impairment of certain intangible assets. For the
year ended
February 29, 2016
, other consists primarily of dividend income from a retained interest in a previously divested business, partially offset by a net loss from the mark to fair value of undesignated commodity derivative contracts.
|
|
Range for the Year
Ending February 28, 2018
|
||||||
Forecasted EPS - reported basis (GAAP)
|
$
|
7.65
|
|
|
$
|
7.95
|
|
Acquisitions, divestitures and related costs
(1)
|
0.05
|
|
|
0.05
|
|
||
Forecasted EPS - comparable basis (Non-GAAP)
(2)
|
$
|
7.70
|
|
|
$
|
8.00
|
|
|
Actual for the
Year Ended
February 28, 2017
|
||
EPS - reported basis (GAAP)
|
$
|
7.52
|
|
Acquisitions, divestitures and related costs
(1)
|
(0.77
|
)
|
|
Other
(3)
|
0.01
|
|
|
EPS - comparable basis (Non-GAAP)
(2)
|
$
|
6.76
|
|
(1)
|
Includes an estimated
$0.02
;
$0.01
;
$0.01
and
$0.01
EPS for the year ending February 28, 2018, associated primarily with integration and other acquisition-related costs in connection with the Prisoner acquisition; the beer acquisitions, including the acquisitions of the June 2013 beer business and the Obregon brewery; the Charles Smith acquisition and the High West acquisition, respectively. Includes
($0.88)
EPS for the year ended February 28, 2017, associated with a net gain in connection with the Canadian divestiture and related activities, partially offset by
$0.03
,
$0.03
,
$0.02
,
$0.01
and
$0.01
EPS for the year ended February 28, 2017, associated with transaction, integration and other acquisition-related costs in connection with the acquisitions of Prisoner, the June 2013 beer business, Meiomi, High West and other acquisitions, respectively.
|
(2)
|
May not sum due to rounding as each item is computed independently.
|
(3)
|
Includes
($0.12)
EPS for the year ended February 28, 2017, associated with a net gain from the mark to fair value of undesignated commodity derivative contracts, partially offset by
$0.12
EPS impairment of certain intangible assets.
(2)
|
|
Range for the Year
Ending February 28, 2018
|
||||||
Net cash provided by operating activities (GAAP)
|
$
|
1,900.0
|
|
|
$
|
2,100.0
|
|
Purchases of property, plant and equipment
|
(1,175.0
|
)
|
|
(1,275.0
|
)
|
||
Free cash flow (Non-GAAP)
|
$
|
725.0
|
|
|
$
|
825.0
|
|
|
Actual for the
Year Ended February 28, 2017 |
|
Actual for the
Year Ended February 29, 2016 |
||||
Net cash provided by operating activities (GAAP)
|
$
|
1,696.0
|
|
|
$
|
1,413.7
|
|
Purchases of property, plant and equipment
|
(907.4
|
)
|
|
(891.3
|
)
|
||
Free cash flow (Non-GAAP)
|
$
|
788.6
|
|
|
$
|
522.4
|
|