ý | QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
¨ | TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
Delaware | 16-0716709 |
(State or other jurisdiction of incorporation or organization) | (I.R.S. Employer Identification No.) |
207 High Point Drive, Building 100, Victor, New York | 14564 | |
(Address of principal executive offices) | (Zip Code) | |
(585) 678-7100 | ||
(Registrant’s telephone number, including area code) | ||
Not Applicable | ||
(Former name, former address and former fiscal year, if changed since last report) |
Large accelerated filer | ý | Accelerated filer | ¨ |
Non-accelerated filer | ¨ (Do not check if a smaller reporting company) | Smaller reporting company | ¨ |
Class | Number of Shares Outstanding | |
Class A Common Stock, par value $.01 per share | 175,886,829 | |
Class B Common Stock, par value $.01 per share | 23,352,754 | |
Class 1 Common Stock, par value $.01 per share | 2,000 |
Item 1. | Financial Statements. |
CONSTELLATION BRANDS, INC. AND SUBSIDIARIES CONSOLIDATED BALANCE SHEETS (in millions, except share and per share data) (unaudited) | |||||||
November 30, 2015 | February 28, 2015 | ||||||
ASSETS | |||||||
Current assets: | |||||||
Cash and cash equivalents | $ | 491.3 | $ | 110.1 | |||
Accounts receivable | 714.7 | 598.9 | |||||
Inventories | 1,884.6 | 1,827.2 | |||||
Prepaid expenses and other | 370.3 | 374.6 | |||||
Total current assets | 3,460.9 | 2,910.8 | |||||
Property, plant and equipment | 2,949.0 | 2,681.6 | |||||
Goodwill | 6,381.8 | 6,208.2 | |||||
Intangible assets | 3,187.8 | 3,181.0 | |||||
Other assets | 177.1 | 162.9 | |||||
Total assets | $ | 16,156.6 | $ | 15,144.5 | |||
LIABILITIES AND STOCKHOLDERS’ EQUITY | |||||||
Current liabilities: | |||||||
Notes payable to banks | $ | 31.1 | $ | 52.4 | |||
Current maturities of long-term debt | 856.9 | 158.1 | |||||
Accounts payable | 420.9 | 285.8 | |||||
Accrued excise taxes | 32.5 | 28.7 | |||||
Other accrued expenses and liabilities | 579.4 | 605.7 | |||||
Total current liabilities | 1,920.8 | 1,130.7 | |||||
Long-term debt, less current maturities | 6,515.0 | 7,137.5 | |||||
Deferred income taxes | 986.4 | 818.9 | |||||
Other liabilities | 137.7 | 176.1 | |||||
Total liabilities | 9,559.9 | 9,263.2 | |||||
Commitments and contingencies | |||||||
CBI stockholders’ equity: | |||||||
Class A Common Stock, $.01 par value- Authorized, 322,000,000 shares; Issued, 255,125,596 shares and 250,839,359 shares, respectively | 2.6 | 2.5 | |||||
Class B Convertible Common Stock, $.01 par value- Authorized, 30,000,000 shares; Issued, 28,358,554 shares and 28,389,608 shares, respectively | 0.3 | 0.3 | |||||
Additional paid-in capital | 2,563.7 | 2,269.8 | |||||
Retained earnings | 5,908.4 | 5,277.5 | |||||
Accumulated other comprehensive loss | (344.9 | ) | (130.9 | ) | |||
8,130.1 | 7,419.2 | ||||||
Less: Treasury stock – | |||||||
Class A Common Stock, at cost, 79,253,678 shares and 79,681,859 shares, respectively | (1,635.5 | ) | (1,646.3 | ) | |||
Class B Convertible Common Stock, at cost, 5,005,800 shares | (2.2 | ) | (2.2 | ) | |||
(1,637.7 | ) | (1,648.5 | ) | ||||
Total CBI stockholders’ equity | 6,492.4 | 5,770.7 | |||||
Noncontrolling interests | 104.3 | 110.6 | |||||
Total stockholders’ equity | 6,596.7 | 5,881.3 | |||||
Total liabilities and stockholders’ equity | $ | 16,156.6 | $ | 15,144.5 |
CONSTELLATION BRANDS, INC. AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (in millions, except per share data) (unaudited) | |||||||||||||||
For the Nine Months Ended November 30, | For the Three Months Ended November 30, | ||||||||||||||
2015 | 2014 | 2015 | 2014 | ||||||||||||
Sales | $ | 5,523.3 | $ | 5,165.7 | $ | 1,812.4 | $ | 1,708.6 | |||||||
Less – excise taxes | (518.1 | ) | (493.9 | ) | (171.9 | ) | (166.9 | ) | |||||||
Net sales | 5,005.2 | 4,671.8 | 1,640.5 | 1,541.7 | |||||||||||
Cost of product sold | (2,759.0 | ) | (2,690.8 | ) | (907.0 | ) | (902.8 | ) | |||||||
Gross profit | 2,246.2 | 1,981.0 | 733.5 | 638.9 | |||||||||||
Selling, general and administrative expenses | (892.2 | ) | (834.5 | ) | (286.2 | ) | (263.3 | ) | |||||||
Operating income | 1,354.0 | 1,146.5 | 447.3 | 375.6 | |||||||||||
Equity in earnings of equity method investees | 28.5 | 21.1 | 27.3 | 21.2 | |||||||||||
Interest expense | (230.4 | ) | (257.4 | ) | (75.6 | ) | (86.0 | ) | |||||||
Loss on write-off of financing costs | (1.1 | ) | (4.4 | ) | — | — | |||||||||
Income before income taxes | 1,151.0 | 905.8 | 399.0 | 310.8 | |||||||||||
Provision for income taxes | (335.7 | ) | (281.1 | ) | (128.0 | ) | (88.6 | ) | |||||||
Net income | 815.3 | 624.7 | 271.0 | 222.2 | |||||||||||
Net income attributable to noncontrolling interests | (3.8 | ) | — | (0.5 | ) | — | |||||||||
Net income attributable to CBI | $ | 811.5 | $ | 624.7 | $ | 270.5 | $ | 222.2 | |||||||
Comprehensive income | $ | 591.2 | $ | 530.1 | $ | 297.9 | $ | 108.8 | |||||||
Comprehensive (income) loss attributable to noncontrolling interests | 6.3 | — | (2.1 | ) | — | ||||||||||
Comprehensive income attributable to CBI | $ | 597.5 | $ | 530.1 | $ | 295.8 | $ | 108.8 | |||||||
Net income per common share attributable to CBI: | |||||||||||||||
Basic – Class A Common Stock | $ | 4.19 | $ | 3.28 | $ | 1.39 | $ | 1.16 | |||||||
Basic – Class B Convertible Common Stock | $ | 3.80 | $ | 2.99 | $ | 1.26 | $ | 1.06 | |||||||
Diluted – Class A Common Stock | $ | 3.99 | $ | 3.11 | $ | 1.33 | $ | 1.10 | |||||||
Diluted – Class B Convertible Common Stock | $ | 3.69 | $ | 2.86 | $ | 1.22 | $ | 1.01 | |||||||
Weighted average common shares outstanding: | |||||||||||||||
Basic – Class A Common Stock | 172.509 | 168.968 | 173.933 | 169.585 | |||||||||||
Basic – Class B Convertible Common Stock | 23.366 | 23.401 | 23.358 | 23.387 | |||||||||||
Diluted – Class A Common Stock | 203.356 | 200.843 | 204.096 | 201.276 | |||||||||||
Diluted – Class B Convertible Common Stock | 23.366 | 23.401 | 23.358 | 23.387 | |||||||||||
Cash dividends declared per common share: | |||||||||||||||
Class A Common Stock | $ | 0.93 | $ | — | $ | 0.31 | $ | — | |||||||
Class B Convertible Common Stock | $ | 0.84 | $ | — | $ | 0.28 | $ | — |
CONSTELLATION BRANDS, INC. AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF CASH FLOWS (in millions) (unaudited) | |||||||
For the Nine Months Ended November 30, | |||||||
2015 | 2014 | ||||||
Cash flows from operating activities: | |||||||
Net income | $ | 815.3 | $ | 624.7 | |||
Adjustments to reconcile net income to net cash provided by operating activities: | |||||||
Deferred tax provision | 192.5 | 80.3 | |||||
Depreciation | 130.5 | 118.4 | |||||
Stock-based compensation | 40.5 | 42.1 | |||||
Amortization of intangible assets | 32.2 | 36.2 | |||||
Amortization of deferred financing costs | 9.0 | 9.0 | |||||
Noncash portion of loss on write-off of financing costs | 1.1 | 3.3 | |||||
Equity in earnings of equity method investees, net of distributed earnings | (18.7 | ) | (12.7 | ) | |||
Change in operating assets and liabilities, net of effects from purchase of business: | |||||||
Accounts receivable | (121.5 | ) | (80.8 | ) | |||
Inventories | (25.0 | ) | (205.6 | ) | |||
Prepaid expenses and other current assets | 46.8 | (68.4 | ) | ||||
Accounts payable | 136.8 | 132.6 | |||||
Accrued excise taxes | 4.3 | (2.5 | ) | ||||
Other accrued expenses and liabilities | (128.1 | ) | 65.4 | ||||
Other | (24.1 | ) | 8.1 | ||||
Total adjustments | 276.3 | 125.4 | |||||
Net cash provided by operating activities | 1,091.6 | 750.1 | |||||
Cash flows from investing activities: | |||||||
Purchases of property, plant and equipment | (513.8 | ) | (541.3 | ) | |||
Purchase of business | (317.9 | ) | (21.4 | ) | |||
Other investing activities | 4.0 | 3.0 | |||||
Net cash used in investing activities | (827.7 | ) | (559.7 | ) | |||
Cash flows from financing activities: | |||||||
Proceeds from issuance of long-term debt | 210.0 | 800.0 | |||||
Excess tax benefits from stock-based payment awards | 204.2 | 76.0 | |||||
Proceeds from shares issued under equity compensation plans | 98.9 | 34.2 | |||||
Dividends paid | (180.4 | ) | — | ||||
Principal payments of long-term debt | (148.3 | ) | (565.3 | ) | |||
Payments of minimum tax withholdings on stock-based payment awards | (38.4 | ) | (28.4 | ) | |||
Net proceeds from (repayments of) notes payable | (15.9 | ) | 50.6 | ||||
Payments of financing costs of long-term debt | (7.9 | ) | (13.3 | ) | |||
Payment of delayed purchase price arrangement | — | (543.3 | ) | ||||
Net cash provided by (used in) financing activities | 122.2 | (189.5 | ) | ||||
Effect of exchange rate changes on cash and cash equivalents | (4.9 | ) | 2.5 | ||||
Net increase in cash and cash equivalents | 381.2 | 3.4 | |||||
Cash and cash equivalents, beginning of period | 110.1 | 63.9 | |||||
Cash and cash equivalents, end of period | $ | 491.3 | $ | 67.3 | |||
CONSTELLATION BRANDS, INC. AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF CASH FLOWS (in millions) (unaudited) | |||||||
For the Nine Months Ended November 30, | |||||||
2015 | 2014 | ||||||
Supplemental disclosures of noncash investing and financing activities: | |||||||
Purchase of business | |||||||
Fair value of assets acquired | $ | 321.2 | $ | 34.8 | |||
Liabilities assumed | (5.0 | ) | — | ||||
Net assets acquired | 316.2 | 34.8 | |||||
Plus – payment of purchase price adjustments | 1.7 | — | |||||
Less – contingent consideration not yet paid | — | (13.4 | ) | ||||
Cash paid for purchase of business | $ | 317.9 | $ | 21.4 |
November 30, 2015 | February 28, 2015 | ||||||
(in millions) | |||||||
Raw materials and supplies | $ | 91.1 | $ | 106.0 | |||
In-process inventories | 1,289.1 | 1,244.0 | |||||
Finished case goods | 504.4 | 477.2 | |||||
$ | 1,884.6 | $ | 1,827.2 |
November 30, 2015 | February 28, 2015 | ||||||
(in millions) | |||||||
Derivative instruments designated as hedging instruments | |||||||
Foreign currency contracts | $ | 611.2 | $ | 454.8 | |||
Interest rate swap contracts | $ | 500.0 | $ | 500.0 | |||
Derivative instruments not designated as hedging instruments | |||||||
Foreign currency contracts | $ | 962.4 | $ | 1,548.5 | |||
Commodity derivative contracts | $ | 213.6 | $ | 190.8 | |||
Interest rate swap contracts | $ | 1,000.0 | $ | 1,000.0 |
Assets | Liabilities | |||||||||||||||
November 30, 2015 | February 28, 2015 | November 30, 2015 | February 28, 2015 | |||||||||||||
(in millions) | ||||||||||||||||
Derivative instruments designated as hedging instruments | ||||||||||||||||
Foreign currency contracts: | ||||||||||||||||
Prepaid expenses and other | $ | 4.8 | $ | 5.3 | Other accrued expenses and liabilities | $ | 28.9 | $ | 23.1 | |||||||
Other assets | $ | 0.8 | $ | 2.0 | Other liabilities | $ | 12.9 | $ | 9.5 | |||||||
Interest rate swap contracts: | ||||||||||||||||
Other assets | $ | — | $ | 0.2 | Other accrued expenses and liabilities | $ | 1.6 | $ | 2.7 | |||||||
Derivative instruments not designated as hedging instruments | ||||||||||||||||
Foreign currency contracts: | ||||||||||||||||
Prepaid expenses and other | $ | 2.4 | $ | 27.3 | Other accrued expenses and liabilities | $ | 3.2 | $ | 26.4 | |||||||
Commodity derivative contracts: | ||||||||||||||||
Prepaid expenses and other | $ | 0.6 | $ | 0.5 | Other accrued expenses and liabilities | $ | 26.9 | $ | 18.0 | |||||||
Other assets | $ | 0.2 | $ | 0.2 | Other liabilities | $ | 14.8 | $ | 9.4 | |||||||
Interest rate swap contracts: | ||||||||||||||||
Prepaid expenses and other | $ | 2.2 | $ | 3.3 | Other accrued expenses and liabilities | $ | 12.0 | $ | 15.6 | |||||||
Other liabilities | $ | — | $ | 4.9 |
Derivative Instruments in Designated Cash Flow Hedging Relationships | Net Gain (Loss) Recognized in OCI (Effective portion) | Location of Net Gain (Loss) Reclassified from AOCI to Income (Effective portion) | Net Gain (Loss) Reclassified from AOCI to Income (Effective portion) | |||||||
(in millions) | ||||||||||
For the Nine Months Ended November 30, 2015 | ||||||||||
Foreign currency contracts | $ | (25.5 | ) | Sales | $ | 1.6 | ||||
Cost of product sold | (14.1 | ) | ||||||||
Interest rate swap contracts | (1.0 | ) | Interest expense | (6.2 | ) | |||||
$ | (26.5 | ) | $ | (18.7 | ) | |||||
For the Nine Months Ended November 30, 2014 | ||||||||||
Foreign currency contracts | $ | (9.2 | ) | Sales | $ | 5.3 | ||||
Cost of product sold | 0.7 | |||||||||
Interest rate swap contracts | (1.2 | ) | Interest expense | (6.2 | ) | |||||
$ | (10.4 | ) | $ | (0.2 | ) | |||||
For the Three Months Ended November 30, 2015 | ||||||||||
Foreign currency contracts | $ | 9.4 | Sales | $ | 0.7 | |||||
Cost of product sold | (6.3 | ) | ||||||||
Interest rate swap contracts | — | Interest expense | (2.0 | ) | ||||||
$ | 9.4 | $ | (7.6 | ) | ||||||
For the Three Months Ended November 30, 2014 | ||||||||||
Foreign currency contracts | $ | (14.2 | ) | Sales | $ | 1.1 | ||||
Cost of product sold | 0.2 | |||||||||
Interest rate swap contracts | (1.0 | ) | Interest expense | (2.0 | ) | |||||
$ | (15.2 | ) | $ | (0.7 | ) |
Derivative Instruments in Designated Cash Flow Hedging Relationships | Location of Net Gain (Loss) Recognized in Income (Ineffective portion) | Net Gain (Loss) Recognized in Income (Ineffective portion) | ||||||
(in millions) | ||||||||
For the Nine Months Ended November 30, 2015 | ||||||||
Foreign currency contracts | Selling, general and administrative expenses | $ | (0.2 | ) | ||||
For the Nine Months Ended November 30, 2014 | ||||||||
Foreign currency contracts | Selling, general and administrative expenses | $ | 0.1 | |||||
For the Three Months Ended November 30, 2015 | ||||||||
Foreign currency contracts | Selling, general and administrative expenses | $ | (0.1 | ) | ||||
For the Three Months Ended November 30, 2014 | ||||||||
Foreign currency contracts | Selling, general and administrative expenses | $ | (0.1 | ) |
Derivative Instruments Not Designated as Hedging Instruments | Location of Net Gain (Loss) Recognized in Income | Net Gain (Loss) Recognized in Income | ||||||
(in millions) | ||||||||
For the Nine Months Ended November 30, 2015 | ||||||||
Commodity derivative contracts | Cost of product sold | $ | (34.5 | ) | ||||
Foreign currency contracts | Selling, general and administrative expenses | (18.9 | ) | |||||
$ | (53.4 | ) | ||||||
For the Nine Months Ended November 30, 2014 | ||||||||
Commodity derivative contracts | Cost of product sold | $ | (24.2 | ) | ||||
Foreign currency contracts | Selling, general and administrative expenses | (4.1 | ) | |||||
Interest rate swap contracts | Interest expense | (0.1 | ) | |||||
$ | (28.4 | ) | ||||||
For the Three Months Ended November 30, 2015 | ||||||||
Commodity derivative contracts | Cost of product sold | $ | (18.1 | ) | ||||
Foreign currency contracts | Selling, general and administrative expenses | (3.8 | ) | |||||
$ | (21.9 | ) | ||||||
For the Three Months Ended November 30, 2014 | ||||||||
Commodity derivative contracts | Cost of product sold | $ | (21.5 | ) | ||||
Foreign currency contracts | Selling, general and administrative expenses | 3.0 | ||||||
Interest rate swap contracts | Interest expense | (0.1 | ) | |||||
$ | (18.6 | ) |
• | 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 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 Measurements Using | |||||||||||||||
Quoted Prices in Active Markets (Level 1) | Significant Other Observable Inputs (Level 2) | Significant Unobservable Inputs (Level 3) | Total | ||||||||||||
(in millions) | |||||||||||||||
November 30, 2015 | |||||||||||||||
Assets: | |||||||||||||||
Foreign currency contracts | $ | — | $ | 8.0 | $ | — | $ | 8.0 | |||||||
Commodity derivative contracts | $ | — | $ | 0.8 | $ | — | $ | 0.8 | |||||||
Interest rate swap contracts | $ | — | $ | 2.2 | $ | — | $ | 2.2 | |||||||
Available-for-sale (“AFS”) debt securities | $ | — | $ | — | $ | 7.4 | $ | 7.4 | |||||||
Liabilities: | |||||||||||||||
Foreign currency contracts | $ | — | $ | 45.0 | $ | — | $ | 45.0 | |||||||
Commodity derivative contracts | $ | — | $ | 41.7 | $ | — | $ | 41.7 | |||||||
Interest rate swap contracts | $ | — | $ | 13.6 | $ | — | $ | 13.6 | |||||||
February 28, 2015 | |||||||||||||||
Assets: | |||||||||||||||
Foreign currency contracts | $ | — | $ | 34.6 | $ | — | $ | 34.6 | |||||||
Commodity derivative contracts | $ | — | $ | 0.7 | $ | — | $ | 0.7 | |||||||
Interest rate swap contracts | $ | — | $ | 3.5 | $ | — | $ | 3.5 | |||||||
AFS debt securities | $ | — | $ | — | $ | 7.8 | $ | 7.8 | |||||||
Liabilities: | |||||||||||||||
Foreign currency contracts | $ | — | $ | 59.0 | $ | — | $ | 59.0 | |||||||
Commodity derivative contracts | $ | — | $ | 27.4 | $ | — | $ | 27.4 | |||||||
Interest rate swap contracts | $ | — | $ | 23.2 | $ | — | $ | 23.2 |
Beer | Wine and Spirits | Consolidated | |||||||||
(in millions) | |||||||||||
Balance, February 28, 2014 | $ | 3,714.6 | $ | 2,432.2 | $ | 6,146.8 | |||||
Purchase accounting allocations (1) | 66.7 | 34.0 | 100.7 | ||||||||
Foreign currency translation adjustments | (5.1 | ) | (34.2 | ) | (39.3 | ) | |||||
Balance, February 28, 2015 | 3,776.2 | 2,432.0 | 6,208.2 | ||||||||
Purchase accounting allocations (2) | — | 203.3 | 203.3 | ||||||||
Foreign currency translation adjustments | (4.4 | ) | (25.3 | ) | (29.7 | ) | |||||
Balance, November 30, 2015 | $ | 3,771.8 | $ | 2,610.0 | $ | 6,381.8 |
(1) | Purchase accounting allocations associated with acquisitions of a glass production plant (Beer) and a super-premium tequila brand (Wine and Spirits). |
(2) | Preliminary purchase accounting allocations associated with the acquisition of Meiomi (as defined below). |
November 30, 2015 | February 28, 2015 | ||||||||||||||
Gross Carrying Amount | Net Carrying Amount | Gross Carrying Amount | Net Carrying Amount | ||||||||||||
(in millions) | |||||||||||||||
Amortizable intangible assets | |||||||||||||||
Customer relationships | $ | 100.5 | $ | 59.5 | $ | 100.9 | $ | 63.3 | |||||||
Favorable interim supply agreement | 68.3 | 8.6 | 68.3 | 33.9 | |||||||||||
Other | 22.3 | 4.2 | 21.0 | 5.5 | |||||||||||
Total | $ | 191.1 | 72.3 | $ | 190.2 | 102.7 | |||||||||
Nonamortizable intangible assets | |||||||||||||||
Trademarks | 3,111.4 | 3,073.9 | |||||||||||||
Other | 4.1 | 4.4 | |||||||||||||
Total | 3,115.5 | 3,078.3 | |||||||||||||
Total intangible assets | $ | 3,187.8 | $ | 3,181.0 |
(in millions) | |||
2016 | $ | 8.0 | |
2017 | $ | 10.7 | |
2018 | $ | 5.8 | |
2019 | $ | 5.8 | |
2020 | $ | 5.6 | |
2021 | $ | 5.4 | |
Thereafter | $ | 31.0 |
November 30, 2015 | February 28, 2015 | ||||||||||||||
Current | Long-term | Total | Total | ||||||||||||
(in millions) | |||||||||||||||
Notes payable to banks | |||||||||||||||
Senior Credit Facility – Revolving Credit Loans | $ | — | $ | — | $ | — | $ | — | |||||||
Other | 31.1 | — | 31.1 | 52.4 | |||||||||||
$ | 31.1 | $ | — | $ | 31.1 | $ | 52.4 | ||||||||
Long-term debt | |||||||||||||||
Senior Credit Facility – Term Loans | $ | 137.5 | $ | 2,771.7 | $ | 2,909.2 | $ | 2,792.1 | |||||||
Senior Notes | 699.3 | 3,650.0 | 4,349.3 | 4,348.6 | |||||||||||
Other | 20.1 | 93.3 | 113.4 | 154.9 | |||||||||||
$ | 856.9 | $ | 6,515.0 | $ | 7,371.9 | $ | 7,295.6 |
Amount | Maturity | ||||
(in millions) | |||||
Revolving Credit Facility (1)(2) | $ | 1,150.0 | July 16, 2020 | ||
U.S. Term A Facility (1)(3) | 1,271.6 | July 16, 2020 | |||
U.S. Term A-1 Facility (1)(3) | 241.9 | July 16, 2021 | |||
European Term A Facility (1)(3) | 1,430.1 | July 16, 2020 | |||
$ | 4,093.6 |
(1) | Contractual interest rate varies based on our debt ratio (as defined in the 2015 Credit Agreement) and is a function of LIBOR plus a margin, or the base rate plus a margin. |
(2) | Provides for credit facilities consisting of a $575.0 million U.S. Revolving Credit Facility and a $575.0 million European Revolving Credit Facility. Includes two sub-facilities for letters of credit of up to $200.0 million in the aggregate. We are the borrower under the U.S. Revolving Credit Facility and we and/or CIH are the borrowers under the European Revolving Credit Facility. |
(3) | We are the borrower under the U.S. Term A and the U.S. Term A-1 loan facilities. CIH is the borrower under the European Term A loan facility. |
Revolving Credit Facility | U.S. Term A Facility | U.S. Term A-1 Facility | European Term A Facility | ||||||||||||
(in millions, except percentage data) | |||||||||||||||
Outstanding borrowings | $ | — | $ | 1,255.7 | $ | 241.3 | $ | 1,412.2 | |||||||
Interest rate | — | % | 1.7 | % | 1.9 | % | 1.7 | % | |||||||
Libor margin | 1.5 | % | 1.5 | % | 1.75 | % | 1.5 | % | |||||||
Outstanding letters of credit | $ | 15.9 | |||||||||||||
Remaining borrowing capacity | $ | 1,134.1 |
U.S. Term A Facility | U.S. Term A-1 Facility | European Term A Facility | Total | ||||||||||||
(in millions) | |||||||||||||||
2016 | $ | 15.9 | $ | 0.6 | $ | 17.9 | $ | 34.4 | |||||||
2017 | 63.6 | 2.4 | 71.5 | 137.5 | |||||||||||
2018 | 63.6 | 2.4 | 71.5 | 137.5 | |||||||||||
2019 | 63.6 | 2.4 | 71.5 | 137.5 | |||||||||||
2020 | 63.5 | 2.5 | 71.5 | 137.5 | |||||||||||
2021 | 985.5 | 2.4 | 1,108.3 | 2,096.2 | |||||||||||
Thereafter | — | 228.6 | — | 228.6 | |||||||||||
$ | 1,255.7 | $ | 241.3 | $ | 1,412.2 | $ | 2,909.2 |
Outstanding Borrowings | Weighted Average Interest Rate | Remaining Borrowing Capacity | ||||||||
(in millions) | ||||||||||
CBI Facility | $ | — | — | % | $ | 305.0 | ||||
Crown Facility | $ | — | — | % | $ | 135.0 |
For the Nine Months Ended | |||||||||||||||
November 30, 2015 | November 30, 2014 | ||||||||||||||
Common Stock | Common Stock | ||||||||||||||
Class A | Class B | Class A | Class B | ||||||||||||
(in millions, except per share data) | |||||||||||||||
Net income attributable to CBI allocated – basic | $ | 722.7 | $ | 88.8 | $ | 554.9 | $ | 69.8 | |||||||
Conversion of Class B common shares into Class A common shares | 88.8 | — | 69.8 | — | |||||||||||
Effect of stock-based awards on allocated net income | — | (2.6 | ) | — | (2.9 | ) | |||||||||
Net income attributable to CBI allocated – diluted | $ | 811.5 | $ | 86.2 | $ | 624.7 | $ | 66.9 | |||||||
Weighted average common shares outstanding – basic | 172.509 | 23.366 | 168.968 | 23.401 | |||||||||||
Conversion of Class B common shares into Class A common shares | 23.366 | — | 23.401 | — | |||||||||||
Stock-based awards, primarily stock options | 7.481 | — | 8.474 | — | |||||||||||
Weighted average common shares outstanding – diluted | 203.356 | 23.366 | 200.843 | 23.401 | |||||||||||
Net income per common share attributable to CBI – basic | $ | 4.19 | $ | 3.80 | $ | 3.28 | $ | 2.99 | |||||||
Net income per common share attributable to CBI – diluted | $ | 3.99 | $ | 3.69 | $ | 3.11 | $ | 2.86 | |||||||
For the Three Months Ended | |||||||||||||||
November 30, 2015 | November 30, 2014 | ||||||||||||||
Common Stock | Common Stock | ||||||||||||||
Class A | Class B | Class A | Class B | ||||||||||||
(in millions, except per share data) | |||||||||||||||
Net income attributable to CBI allocated – basic | $ | 241.1 | $ | 29.4 | $ | 197.5 | $ | 24.7 | |||||||
Conversion of Class B common shares into Class A common shares | 29.4 | — | 24.7 | — | |||||||||||
Effect of stock-based awards on allocated net income | — | (0.8 | ) | — | (1.0 | ) | |||||||||
Net income attributable to CBI allocated – diluted | $ | 270.5 | $ | 28.6 | $ | 222.2 | $ | 23.7 | |||||||
Weighted average common shares outstanding – basic | 173.933 | 23.358 | 169.585 | 23.387 | |||||||||||
Conversion of Class B common shares into Class A common shares | 23.358 | — | 23.387 | — | |||||||||||
Stock-based awards, primarily stock options | 6.805 | — | 8.304 | — | |||||||||||
Weighted average common shares outstanding – diluted | 204.096 | 23.358 | 201.276 | 23.387 | |||||||||||
Net income per common share attributable to CBI – basic | $ | 1.39 | $ | 1.26 | $ | 1.16 | $ | 1.06 | |||||||
Net income per common share attributable to CBI – diluted | $ | 1.33 | $ | 1.22 | $ | 1.10 | $ | 1.01 |
Before Tax Amount | Tax (Expense) Benefit | Net of Tax Amount | |||||||||
(in millions) | |||||||||||
For the Nine Months Ended November 30, 2015 | |||||||||||
Net income attributable to CBI | $ | 811.5 | |||||||||
Other comprehensive loss: | |||||||||||
Foreign currency translation adjustments: | |||||||||||
Net losses | $ | (209.7 | ) | $ | 2.7 | (207.0 | ) | ||||
Reclassification adjustments | — | — | — | ||||||||
Net loss recognized in other comprehensive loss | (209.7 | ) | 2.7 | (207.0 | ) | ||||||
Unrealized loss on cash flow hedges: | |||||||||||
Net derivative losses | (36.2 | ) | 9.7 | (26.5 | ) | ||||||
Reclassification adjustments | 27.1 | (8.2 | ) | 18.9 | |||||||
Net loss recognized in other comprehensive loss | (9.1 | ) | 1.5 | (7.6 | ) | ||||||
Unrealized loss on AFS debt securities: | |||||||||||
Net AFS debt securities losses | (0.4 | ) | — | (0.4 | ) | ||||||
Reclassification adjustments | — | — | — | ||||||||
Net loss recognized in other comprehensive loss | (0.4 | ) | — | (0.4 | ) | ||||||
Pension/postretirement adjustments: | |||||||||||
Net actuarial gains | 1.2 | (0.3 | ) | 0.9 | |||||||
Reclassification adjustments | 0.3 | (0.2 | ) | 0.1 | |||||||
Net gain recognized in other comprehensive loss | 1.5 | (0.5 | ) | 1.0 | |||||||
Other comprehensive loss attributable to CBI | $ | (217.7 | ) | $ | 3.7 | (214.0 | ) | ||||
Comprehensive income attributable to CBI | $ | 597.5 | |||||||||
Before Tax Amount | Tax (Expense) Benefit | Net of Tax Amount | |||||||||
(in millions) | |||||||||||
For the Nine Months Ended November 30, 2014 | |||||||||||
Net income attributable to CBI | $ | 624.7 | |||||||||
Other comprehensive loss: | |||||||||||
Foreign currency translation adjustments: | |||||||||||
Net losses | $ | (82.1 | ) | $ | (2.0 | ) | (84.1 | ) | |||
Reclassification adjustments | — | — | — | ||||||||
Net loss recognized in other comprehensive loss | (82.1 | ) | (2.0 | ) | (84.1 | ) | |||||
Unrealized loss on cash flow hedges: | |||||||||||
Net derivative losses | (14.7 | ) | 4.3 | (10.4 | ) | ||||||
Reclassification adjustments | 1.4 | (1.3 | ) | 0.1 | |||||||
Net loss recognized in other comprehensive loss | (13.3 | ) | 3.0 | (10.3 | ) | ||||||
Unrealized loss on AFS debt securities: | |||||||||||
Net AFS debt securities losses | (0.5 | ) | — | (0.5 | ) | ||||||
Reclassification adjustments | — | — | — | ||||||||
Net loss recognized in other comprehensive loss | (0.5 | ) | — | (0.5 | ) | ||||||
Pension/postretirement adjustments: | |||||||||||
Net actuarial gains | 0.5 | (0.2 | ) | 0.3 | |||||||
Reclassification adjustments | — | — | — | ||||||||
Net gain recognized in other comprehensive loss | 0.5 | (0.2 | ) | 0.3 | |||||||
Other comprehensive loss attributable to CBI | $ | (95.4 | ) | $ | 0.8 | (94.6 | ) | ||||
Comprehensive income attributable to CBI | $ | 530.1 | |||||||||
For the Three Months Ended November 30, 2015 | |||||||||||
Net income attributable to CBI | $ | 270.5 | |||||||||
Other comprehensive income: | |||||||||||
Foreign currency translation adjustments: | |||||||||||
Net gains | $ | 8.1 | $ | (0.1 | ) | 8.0 | |||||
Reclassification adjustments | — | — | — | ||||||||
Net gain recognized in other comprehensive income | 8.1 | (0.1 | ) | 8.0 | |||||||
Unrealized gain on cash flow hedges: | |||||||||||
Net derivative gains | 12.7 | (3.3 | ) | 9.4 | |||||||
Reclassification adjustments | 10.8 | (3.1 | ) | 7.7 | |||||||
Net gain recognized in other comprehensive income | 23.5 | (6.4 | ) | 17.1 | |||||||
Pension/postretirement adjustments: | |||||||||||
Net actuarial gains | 0.3 | — | 0.3 | ||||||||
Reclassification adjustments | 0.1 | (0.2 | ) | (0.1 | ) | ||||||
Net gain recognized in other comprehensive income | 0.4 | (0.2 | ) | 0.2 | |||||||
Other comprehensive income attributable to CBI | $ | 32.0 | $ | (6.7 | ) | 25.3 | |||||
Comprehensive income attributable to CBI | $ | 295.8 | |||||||||
Before Tax Amount | Tax (Expense) Benefit | Net of Tax Amount | |||||||||
(in millions) | |||||||||||
For the Three Months Ended November 30, 2014 | |||||||||||
Net income attributable to CBI | $ | 222.2 | |||||||||
Other comprehensive loss: | |||||||||||
Foreign currency translation adjustments: | |||||||||||
Net losses | $ | (97.9 | ) | $ | (0.8 | ) | (98.7 | ) | |||
Reclassification adjustments | — | — | — | ||||||||
Net loss recognized in other comprehensive loss | (97.9 | ) | (0.8 | ) | (98.7 | ) | |||||
Unrealized loss on cash flow hedges: | |||||||||||
Net derivative losses | (21.1 | ) | 5.9 | (15.2 | ) | ||||||
Reclassification adjustments | 1.5 | (0.7 | ) | 0.8 | |||||||
Net loss recognized in other comprehensive loss | (19.6 | ) | 5.2 | (14.4 | ) | ||||||
Unrealized loss on AFS debt securities: | |||||||||||
Net AFS debt securities losses | (0.7 | ) | 0.1 | (0.6 | ) | ||||||
Reclassification adjustments | — | — | — | ||||||||
Net loss recognized in other comprehensive loss | (0.7 | ) | 0.1 | (0.6 | ) | ||||||
Pension/postretirement adjustments: | |||||||||||
Net actuarial gains | 0.5 | (0.2 | ) | 0.3 | |||||||
Reclassification adjustments | — | — | — | ||||||||
Net gain recognized in other comprehensive loss | 0.5 | (0.2 | ) | 0.3 | |||||||
Other comprehensive loss attributable to CBI | $ | (117.7 | ) | $ | 4.3 | (113.4 | ) | ||||
Comprehensive income attributable to CBI | $ | 108.8 |
Foreign Currency Translation Adjustments | Net Unrealized Losses on Derivative Instruments | Net Unrealized Losses on AFS Debt Securities | Pension/ Postretirement Adjustments | Accumulated Other Comprehensive Loss | |||||||||||||||
(in millions) | |||||||||||||||||||
Balance, February 28, 2015 | $ | (86.1 | ) | $ | (29.1 | ) | $ | (2.5 | ) | $ | (13.2 | ) | $ | (130.9 | ) | ||||
Other comprehensive income (loss): | |||||||||||||||||||
Other comprehensive income (loss) before reclassification adjustments | (207.0 | ) | (26.5 | ) | (0.4 | ) | 0.9 | (233.0 | ) | ||||||||||
Amounts reclassified from accumulated other comprehensive loss | — | 18.9 | — | 0.1 | 19.0 | ||||||||||||||
Other comprehensive income (loss) | (207.0 | ) | (7.6 | ) | (0.4 | ) | 1.0 | (214.0 | ) | ||||||||||
Balance, November 30, 2015 | $ | (293.1 | ) | $ | (36.7 | ) | $ | (2.9 | ) | $ | (12.2 | ) | $ | (344.9 | ) |
Parent Company | Subsidiary Guarantors | Subsidiary Nonguarantors | Eliminations | Consolidated | |||||||||||||||
(in millions) |