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Leases

12 Months Ended

Feb. 28, 2022

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, 2022		February 28, 2021
(in millions)
Assets
Operating lease	Other assets	$	478.9	$	477.9
Finance lease	Property, plant, and equipment	21.8		17.0
Total right-of-use assets		$	500.7	$	494.9

Liabilities
Current:
Operating lease	Other accrued expenses and liabilities	$	80.4	$	68.8
Finance lease	Current maturities of long-term debt	6.3		4.6
Non-current:
Operating lease	Deferred income taxes and other liabilities	457.3		471.1
Finance lease	Long-term debt, less current maturities	13.6		10.9
Total lease liabilities		$	557.6	$	555.4

Lease cost

The components of total lease cost are as follows:


	For the Years Ended
	February 28, 2022		February 28, 2021		February 29, 2020
(in millions)
Operating lease cost	$	89.5	$	93.4	$	98.9
Finance lease cost:
Amortization of right-of-use assets	5.8		11.0		12.2
Interest on lease liabilities	0.5		0.5		0.7
Short-term lease cost	8.4		9.2		8.6
Variable lease cost (1)	202.5		216.5		403.3
Total lease cost	$	306.7	$	330.6	$	523.7

(1)Higher variable lease costs for the year ended February 29, 2020, was primarily driven by the transfer of grape purchasing agreements in connection with our Wine and Spirits Divestitures.

Lease maturities

As of February 28, 2022, 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)
Fiscal 2023	$	95.1	$	7.3
Fiscal 2024	89.1		6.6
Fiscal 2025	73.3		4.2
Fiscal 2026	50.5		2.1
Fiscal 2027	43.0		0.9
Thereafter	290.6		0.1
Total lease payments	641.6		21.2
Less: Interest	(103.9)		(1.3)
Total lease liabilities	$	537.7	$	19.9

Related party transaction

We have entered into a lease for office space with an affiliate of an executive officer and director that has not yet commenced. As of February 28, 2022, the aggregate minimum payments for this operating lease totaled $38.4 million on an undiscounted basis.

Supplemental information


	For the Years Ended
	February 28, 2022			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	$	92.7		$	93.9		$	100.7
Operating cash flows from finance leases	$	0.5		$	0.5		$	0.7
Financing cash flows from finance leases	$	5.9		$	10.5		$	13.8



Right-of-use assets obtained in exchange for new lease liabilities:
Operating leases	$	93.8		$	66.3		$	34.3
Finance leases	$	10.5		$	11.6		$	10.7

	February 28, 2022			February 28, 2021			February 29, 2020
Weighted-average remaining lease term: (1)
Operating leases	12.1 years			12.8 years			11.7 years
Finance leases	3.3 years			2.9 years			3.2 years

Weighted-average discount rate:
Operating leases	3.0		%	3.2		%	3.5		%
Finance leases	3.4		%	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