Acquisitions, Divestitures, and Business Transformation (Tables)

6 Months Ended

Aug. 31, 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	$	269.7
Net assets sold	(213.3)
AOCI reclassification adjustments, primarily foreign currency translation	20.9
Direct costs to sell	(3.8)
Working capital adjustments to be paid	(3.0)
Gain on sale of business	$	70.5

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

	August 31, 2020		February 29, 2020
	Wine and Spirits		Beer (1)		Wine and Spirits		Consolidated
(in millions)
Assets
Accounts receivable	$	—	$	2.4	$	—	$	2.4
Inventories	563.9		13.7		576.9		590.6
Prepaid expenses and other	16.9		2.8		32.7		35.5
Assets held for sale - current	580.8		18.9		609.6		628.5
Property, plant, and equipment	133.2		55.9		172.6		228.5
Goodwill	287.2		4.7		304.3		309.0
Intangible assets	377.6		28.2		384.0		412.2
Equity method investments	0.4		—		1.0		1.0
Other assets	28.2		24.8		26.3		51.1
Less: Reserve for assets held for sale	(410.0)		(42.7)		(407.0)		(449.7)
Assets held for sale	416.6		70.9		481.2		552.1
Liabilities
Accounts payable	1.5		0.2		0.6		0.8
Other accrued expenses and liabilities	13.8		11.0		17.8		28.8
Deferred income taxes and other liabilities	—		33.3		—		33.3
Liabilities held for sale (2)	15.3		44.5		18.4		62.9
Net assets held for sale	$	982.1	$	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 August 31, 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 Six Months Ended August 31,				For the Three Months Ended August 31,
	Results of Operations Location	2020		2019		2020		2019
(in millions)
Loss on inventory write-downs	Cost of product sold	$	4.0	$	40.9	$	(0.1)	$	13.7
Contract termination costs	Cost of product sold	16.9		20.1		—		4.3
Employee termination costs	Selling, general, and administrative expenses	2.5		12.1		3.8		0.2
Other costs	Selling, general, and administrative expenses	1.0		6.3		1.0		—
Impairment of long-lived assets	Impairment of assets held for sale	3.0		27.0		(22.0)		27.0
		$	27.4	$	106.4	$	(17.3)	$	45.2