Acquisitions, Divestitures, and Business Transformation (Tables)

9 Months Ended

Nov. 30, 2020

Business Combinations [Abstract]

Components of gain on sale of business and assets held for sale

The following table summarizes the net gain recognized in connection with this divestiture:

(in millions)
Cash received from buyer, net of post-closing adjustments paid	$	266.7
Net assets sold	(213.3)
AOCI reclassification adjustments, primarily foreign currency translation	20.9
Direct costs to sell	(3.8)
Gain on sale of business	$	70.5

The carrying value of assets held for sale consist of the following:

	November 30, 2020		February 29, 2020
	Wine and Spirits		Beer (1)		Wine and Spirits		Consolidated
(in millions)
Assets
Accounts receivable	$	—	$	2.4	$	—	$	2.4
Inventories	526.7		13.7		576.9		590.6
Prepaid expenses and other	19.7		2.8		32.7		35.5
Assets held for sale - current	546.4		18.9		609.6		628.5
Property, plant, and equipment	134.0		55.9		172.6		228.5
Goodwill	274.0		4.7		304.3		309.0
Intangible assets	378.9		28.2		384.0		412.2
Equity method investments	0.3		—		1.0		1.0
Other assets	29.3		24.8		26.3		51.1
Less: Reserve for assets held for sale	(431.0)		(42.7)		(407.0)		(449.7)
Assets held for sale	385.5		70.9		481.2		552.1
Liabilities
Accounts payable	0.1		0.2		0.6		0.8
Other accrued expenses and liabilities	20.0		11.0		17.8		28.8
Deferred income taxes and other liabilities	1.1		33.3		—		33.3
Liabilities held for sale (2)	21.2		44.5		18.4		62.9
Net assets held for sale	$	910.7	$	45.3	$	1,072.4	$	1,117.7

(1)In March 2020, we completed the Ballast Point Divestiture.

(2)Liabilities held for sale are included in the Consolidated Balance Sheets at November 30, 2020, and February 29, 2020, within the respective liability line items noted above.

Components of wine and spirits optimization

We recognized charges in connection with our business transformation strategy which aligns our portfolio with consumer-led premiumization trends within the Wine and Spirits segment as follows:

		For the Nine Months Ended November 30,				For the Three Months Ended November 30,
	Results of Operations Location	2020		2019		2020		2019
(in millions)
Loss on inventory write-downs	Cost of product sold	$	4.7	$	102.6	$	0.7	$	61.7
Contract termination costs	Cost of product sold	16.9		20.1		—		—
Employee termination costs	Selling, general, and administrative expenses	3.5		12.3		1.0		0.2
Other costs	Selling, general, and administrative expenses	9.7		8.0		8.7		1.7
Impairment of long-lived assets	Impairment of assets held for sale	24.0		367.0		21.0		340.0
		$	58.8	$	510.0	$	31.4	$	403.6