Leases

12 Months Ended

Feb. 28, 2021

Leases [Abstract]

LEASES, OPERATING

LEASES

General

We primarily lease certain vineyards, office and production facilities, warehouses, production equipment, and vehicles. We have concluded that certain grape purchasing arrangements associated with the purchase of grape production yielded from a specified block of a vineyard and certain third-party logistics arrangements contain a lease.

Balance sheet location

A summary of lease right-of-use assets and liabilities are as follows:

	Balance Sheet Classification	February 28, 2021		February 29, 2020
(in millions)
Assets
Operating lease	Other assets	$	477.9	$	481.4
Finance lease	Property, plant, and equipment	17.0		26.6
Total right-of-use assets		$	494.9	$	508.0
Liabilities
Current:
Operating lease	Other accrued expenses and liabilities	$	68.8	$	76.6
Finance lease	Current maturities of long-term debt	4.6		11.7
Non-current:
Operating lease	Deferred income taxes and other liabilities	471.1		483.6
Finance lease	Long-term debt, less current maturities	10.9		13.6
Total lease liabilities		$	555.4	$	585.5

Lease cost

The components of total lease cost are as follows:

	For the Years Ended
	February 28, 2021		February 29, 2020
(in millions)
Operating lease cost	$	93.4	$	98.9
Finance lease cost:
Amortization of right-of-use assets	11.0		12.2
Interest on lease liabilities	0.5		0.7
Short-term lease cost	9.2		8.6
Variable lease cost (1)	216.5		403.3
Total lease cost	$	330.6	$	523.7

(1)The decrease for the year ended February 28, 2021, was primarily due to (i) transfers of grape purchasing agreements largely in connection with our Wine and Spirits Divestitures and (ii) reduced grape supply availability due to the 2020 U.S. wildfires (see Note 16).

Lease maturities (1)

As of February 28, 2021, minimum payments due for lease liabilities for each of the five succeeding fiscal years and thereafter are as follows:

	Operating Leases		Finance Leases
(in millions)
2022	$	84.6	$	4.8
2023	73.3		4.7
2024	66.7		4.2
2025	54.6		2.1
2026	44.1		—
Thereafter	336.0		—
Total lease payments	659.3		15.8
Less: Interest	(119.4)		(0.3)
Total lease liabilities	$	539.9	$	15.5

(1)For leases with terms in excess of 12 months at inception.

Supplemental information

	For the Years Ended
	February 28, 2021			February 29, 2020
(in millions)
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows from operating leases	$	93.9		$	100.7
Operating cash flows from finance leases	$	0.5		$	0.7
Financing cash flows from finance leases	$	10.5		$	13.8
Right-of-use assets obtained in exchange for new lease liabilities:
Operating leases	$	66.3		$	34.3
Finance leases	$	11.6		$	10.7
	February 28, 2021			February 29, 2020
Weighted-average remaining lease term: (1)
Operating leases	12.8 years			11.7 years
Finance leases	2.9 years			3.2 years
Weighted-average discount rate:
Operating leases	3.2		%	3.5		%
Finance leases	1.2		%	2.6		%

(1)Our leases have varying terms with remaining lease terms of up to approximately 30 years. Certain of our lease arrangements provide us with the option to extend or to terminate the lease early.

LEASES, FINANCE

LEASES

General

We primarily lease certain vineyards, office and production facilities, warehouses, production equipment, and vehicles. We have concluded that certain grape purchasing arrangements associated with the purchase of grape production yielded from a specified block of a vineyard and certain third-party logistics arrangements contain a lease.

Balance sheet location

A summary of lease right-of-use assets and liabilities are as follows:

	Balance Sheet Classification	February 28, 2021		February 29, 2020
(in millions)
Assets
Operating lease	Other assets	$	477.9	$	481.4
Finance lease	Property, plant, and equipment	17.0		26.6
Total right-of-use assets		$	494.9	$	508.0
Liabilities
Current:
Operating lease	Other accrued expenses and liabilities	$	68.8	$	76.6
Finance lease	Current maturities of long-term debt	4.6		11.7
Non-current:
Operating lease	Deferred income taxes and other liabilities	471.1		483.6
Finance lease	Long-term debt, less current maturities	10.9		13.6
Total lease liabilities		$	555.4	$	585.5

Lease cost

The components of total lease cost are as follows:

	For the Years Ended
	February 28, 2021		February 29, 2020
(in millions)
Operating lease cost	$	93.4	$	98.9
Finance lease cost:
Amortization of right-of-use assets	11.0		12.2
Interest on lease liabilities	0.5		0.7
Short-term lease cost	9.2		8.6
Variable lease cost (1)	216.5		403.3
Total lease cost	$	330.6	$	523.7

(1)The decrease for the year ended February 28, 2021, was primarily due to (i) transfers of grape purchasing agreements largely in connection with our Wine and Spirits Divestitures and (ii) reduced grape supply availability due to the 2020 U.S. wildfires (see Note 16).

Lease maturities (1)

As of February 28, 2021, minimum payments due for lease liabilities for each of the five succeeding fiscal years and thereafter are as follows:

	Operating Leases		Finance Leases
(in millions)
2022	$	84.6	$	4.8
2023	73.3		4.7
2024	66.7		4.2
2025	54.6		2.1
2026	44.1		—
Thereafter	336.0		—
Total lease payments	659.3		15.8
Less: Interest	(119.4)		(0.3)
Total lease liabilities	$	539.9	$	15.5

(1)For leases with terms in excess of 12 months at inception.

Supplemental information

	For the Years Ended
	February 28, 2021			February 29, 2020
(in millions)
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows from operating leases	$	93.9		$	100.7
Operating cash flows from finance leases	$	0.5		$	0.7
Financing cash flows from finance leases	$	10.5		$	13.8
Right-of-use assets obtained in exchange for new lease liabilities:
Operating leases	$	66.3		$	34.3
Finance leases	$	11.6		$	10.7
	February 28, 2021			February 29, 2020
Weighted-average remaining lease term: (1)
Operating leases	12.8 years			11.7 years
Finance leases	2.9 years			3.2 years
Weighted-average discount rate:
Operating leases	3.2		%	3.5		%
Finance leases	1.2		%	2.6		%

(1)Our leases have varying terms with remaining lease terms of up to approximately 30 years. Certain of our lease arrangements provide us with the option to extend or to terminate the lease early.