Table of Contents For the Year Ended February 28, 2018 For the Year Ended February 28, 2017 As Previously Reported Revenue Recognition Adjustments As Adjusted As Previously Reported Revenue Recognition Adjustments As Adjusted (in millions, except per share data ) Consolidated Statements of Comprehensive Income Sales $ 8,326.8 $ (4.7) $ 8,322.1 $ 8,061.6 $ (10.4) $ 8,051.2 Net sales $ 7,585.0 $ (4.7 ) $ 7,580.3 $ 7,331.5 $ (10.4 ) $ 7,321.1 Gross profit $ 3,817.2 $ (4.7) $ 3,812.5 $ 3,529.4 $ (10.4) $ 3,519.0 Operating income $ 2,284.5 $ (4.7 ) $ 2,279.8 $ 2,399.4 $ (10.4 ) $ 2,389.0 Income before income taxes $ 2,342.7 $ (4.7) $ 2,338.0 $ 2,093.4 $ (10.4) $ 2,083.0 Provision for income taxes $ (11.9 ) $ (10.8 ) $ (22.7 ) $ (554.2 ) $ 3.9 $ (550.3 ) Net income $ 2,330.8 $ (15.5) $ 2,315.3 $ 1,539.2 $ (6.5) $ 1,532.7 Net income attributable to CBI $ 2,318.9 $ (15.5 ) $ 2,303.4 $ 1,535.1 $ (6.5 ) $ 1,528.6 Comprehensive income attributable to CBI $ 2,515.8 $ (15.5) $ 2,500.3 $ 1,587.8 $ (6.5) $ 1,581.3 Net income per common share attributable to CBI: Basic – Class A Common Stock $ 12.04 $ (0.08 ) $ 11.96 $ 7.79 $ (0.03 ) $ 7.76 Basic – Class B Convertible Common Stock $ 10.93 $ (0.07) $ 10.86 $ 7.07 $ (0.03) $ 7.04 Diluted – Class A Common Stock $ 11.55 $ (0.08) $ 11.47 $ 7.52 $ (0.03) $ 7.49 Diluted – Class B Convertible Common Stock $ 10.66 $ (0.07 ) $ 10.59 $ 6.93 $ (0.03 ) $ 6.90 The adoption of the revenue recognition guidance had no impact to cash flows from operating, financing or investing activities in our consolidated statements of cash flows for the years ended February 28, 2018, and February 28, 2017. In October 2016, the FASB issued guidance that simplifies the accounting for the income tax consequences of intra-entity transfers of assets other than inventory. Under this guidance, an entity is required to recognize the income tax consequences of an intra-entity transfer of an asset other than inventory when the transfer occurs. Prior guidance prohibited the recognition in earnings of current and deferred income taxes for an intra-entity asset transfer until the asset had been sold to an outside party or recovered through use. Income taxes: We adopted this guidance on March 1, 2018, using the modified retrospective basis, which requires a cumulative effect adjustment to retained earnings as of the beginning of the period of adoption. Based on our assessment of intra-entity asset transfers that are in scope and the related deferred income taxes, we recognized the cumulative effect of adopting this guidance in the first quarter of fiscal 2019 with a net increase to our March 1, 2018, opening retained earnings and deferred tax assets of approximately $2.2 billion, primarily in connection with the intra-entity transfer of certain intellectual property related to our imported beer business for the year ended February 28, 2018. In connection with a change in forecast within that business for the fourth quarter of fiscal 2019, we recognized a tax benefit of $50.1 million from the reversal of a valuation allowance established in connection with the adoption of this guidance on March 1, 2018. Accounting guidance not yet adopted – Leases: In February 2016, the FASB issued guidance for the accounting for leases. Under this guidance, a lessee will recognize assets and liabilities on its balance sheet for most leases, but will recognize expense similar to current lease accounting guidance. Additionally, this guidance requires enhanced disclosures regarding the amount, timing and uncertainty of cash flows arising from leasing arrangements. We adopted this guidance on March 1, 2019, using the modified retrospective approach. We will apply the transition method which does not require adjustments to comparative periods or require modified disclosures for those comparative periods for Fiscal 2020. The guidance provides a number of optional practical expedients in 66