Revenue recognition: Effective March 1, 2018, we adopted the FASB amended guidance regarding the recognition of revenue from contracts with customers using the retrospective application method (see Note 2 for impacts of adoption). Our revenue (referred to in our financial statements as sales) consists primarily of the sale of beer, wine and spirits domestically in the U.S. Sales of products are for cash or otherwise agreed-upon credit terms. Our payment terms vary by location and customer, however, the time period between when revenue is recognized and when payment is due is not significant. Our customers consist primarily of wholesale distributors. Our revenue generating activities have a single performance obligation and are recognized at the point in time when control transfers and our obligation has been fulfilled, which is when the related goods are shipped or delivered to the customer, depending upon the method of distribution and shipping terms. Revenue is measured as the amount of consideration we expect to receive in exchange for the sale of our product. Our sales terms do not allow for a right of return except for matters related to any manufacturing defects on our part. Amounts billed to customers for shipping and handling are included in sales. As noted, the majority of our revenues are generated from the domestic sale of beer, wine and spirits to wholesale distributors in the U.S. Our other revenue generating activities include the export of certain of our products to select international markets, as well as the sale of our products through state alcohol beverage control agencies and on-premise, retail locations in certain markets. We have evaluated these other revenue generating activities under the disaggregation disclosure criteria outlined within the amended guidance and concluded that these other revenue generating activities are immaterial for separate disclosure. See Note 15 for disclosure of net sales by product type. Sales reflect reductions attributable to consideration given to customers in various customer incentive programs, including pricing discounts on single transactions, volume discounts, promotional and advertising allowances, coupons and rebates. This variable consideration is recorded as a reduction of the transaction price based upon expected amounts at the time revenue for the corresponding product sale is recognized. For example, customer promotional discount programs are entered into with certain distributors for certain periods of time. The amount ultimately reimbursed to distributors is determined based upon agreed-upon promotional discounts which are applied to distributors sales to retailers. Other common forms of variable consideration include volume rebates for meeting established sales targets, and coupons and mail-in rebates offered to the end consumer. The determination of the reduction of the transaction price for variable consideration requires that we make certain estimates and assumptions that affect the timing and amounts of revenue and liabilities recorded. We estimate this variable consideration by taking into account factors such as the nature of the promotional activity, historical information and current trends, availability of actual results, and expectations of customer and consumer behavior. Excise taxes remitted to tax authorities are government-imposed excise taxes on our beverage alcohol products. Excise taxes are shown on a separate line item as a reduction of sales. Excise taxes are recognized as a current liability within other accrued expenses and liabilities, with the liability subsequently reduced when the taxes are remitted to the tax authority. Revenue recognition: In May 2014, the FASB issued guidance regarding the recognition of revenue from contracts with customers. Under this guidance, an entity will recognize revenue to depict the transfer of goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. Additionally, this guidance requires improved disclosures regarding the nature, amount, timing and uncertainty of revenue and cash flows arising from contracts with customers. We adopted this guidance on March 1, 2018, using the retrospective application method to allow for comparable reporting in all periods throughout the year ending February 28, 2019. Based on our analysis, we concluded that the adoption of the amended guidance did not have a material impact on our net sales recognition. However, the broad definition of variable consideration under this guidance requires us to estimate and record certain variable payments resulting from various sales incentives earlier than we have historically recorded them. This change in the timing of when we recognize sales incentive expenses resulted in a shift in net sales recognition primarily between our fiscal quarters. Under the retrospective application method, we recognized the cumulative impact of adopting this guidance in the first quarter of fiscal 2019 with a reduction to our March 1, 2016, opening retained earnings of $49.0 million , net of income tax effect, with an offsetting increase to current accrued promotion expense and the recognition of a deferred tax asset to align the timing of when we recognize sales incentive expense and when we recognize revenue. The effects of the retrospective application method on our consolidated financial statements for the periods presented in this report were as follows: As Previously Reported Revenue Recognition Adjustments As Adjusted (in millions, except per share data ) Consolidated Balance Sheet at February 28, 2018 Other accrued expenses and liabilities $ 583.4 $ 94.9 $ 678.3 Total current liabilities $ 1,944.7 $ 94.9 $ 2,039.6 Other liabilities (including deferred income taxes  as previously reported, $718.3 million; as adjusted, $694.4 million) $ 1,113.7 $ (23.9 ) $ 1,089.8 Total liabilities $ 12,476.0 $ 71.0 $ 12,547.0 Retained earnings $ 9,228.2 $ (71.0 ) $ 9,157.2 Total stockholders equity $ 8,062.7 $ (71.0 ) $ 7,991.7 As Previously Reported Revenue Recognition Adjustments As Adjusted (in millions, except per share data ) Consolidated Statement of Comprehensive Income for the Six Months Ended August 31, 2017 Sales $ 4,412.5 $ (3.6 ) $ 4,408.9 Net sales $ 4,020.0 $ (3.6 ) $ 4,016.4 Gross profit $ 2,060.6 $ (3.6 ) $ 2,057.0 Operating income $ 1,282.0 $ (3.6 ) $ 1,278.4 Income before income taxes $ 1,110.1 $ (3.6 ) $ 1,106.5 Provision for income taxes $ (202.8 ) $ 1.4 $ (201.4 ) Net income $ 907.3 $ (2.2 ) $ 905.1 Net income attributable to CBI $ 902.3 $ (2.2 ) $ 900.1 Comprehensive income attributable to CBI $ 1,214.7 $ (2.2 ) $ 1,212.5 Net income per common share attributable to CBI: Basic  Class A Common Stock $ 4.67 $ (0.01 ) $ 4.66 Basic  Class B Convertible Common Stock $ 4.24 $ (0.01 ) $ 4.23 Diluted  Class A Common Stock $ 4.48 $ (0.01 ) $ 4.47 Diluted  Class B Convertible Common Stock $ 4.14 $ (0.01 ) $ 4.13 Consolidated Statement of Comprehensive Income for the Three Months Ended August 31, 2017 Sales $ 2,297.2 $ 3.4 $ 2,300.6 Net sales $ 2,084.5 $ 3.4 $ 2,087.9 Gross profit $ 1,065.3 $ 3.4 $ 1,068.7 Operating income $ 713.9 $ 3.4 $ 717.3 Income before income taxes $ 630.7 $ 3.4 $ 634.1 Provision for income taxes $ (128.7 ) $ (1.3 ) $ (130.0 ) Net income $ 502.0 $ 2.1 $ 504.1 Net income attributable to CBI $ 499.5 $ 2.1 $ 501.6 Comprehensive income attributable to CBI $ 624.4 $ 2.1 $ 626.5 Net income per common share attributable to CBI: Basic  Class A Common Stock $ 2.58 $ 0.01 $ 2.59 Basic  Class B Convertible Common Stock $ 2.35 $ 0.01 $ 2.36 Diluted  Class A Common Stock $ 2.48 $ 0.01 $ 2.49 Diluted  Class B Convertible Common Stock $ 2.29 $ 0.01 $ 2.30 The adoption of the revenue recognition guidance had no impact to cash flows from operating, financing or investing activities in our consolidated statement of cash flows for the six months ended August 31, 2017.