Acquisitions and Divestitures

3 Months Ended

May 31, 2025

Business Combinations [Abstract]

Mergers, Acquisitions and Dispositions Disclosures

ACQUISITIONS AND DIVESTITURES

ACQUISITION

Sea Smoke

In June 2024, we acquired the Sea Smoke business, including a California-based luxury wine brand, vineyards, and a production facility. This transaction also included the acquisition of goodwill, inventory, and a trademark. The results of operations of Sea Smoke are reported in the Wine and Spirits segment and have been included in our consolidated results of operations from the date of acquisition.

DIVESTITURES

SVEDKA Divestiture

On January 6, 2025, we sold the SVEDKA brand and related assets, primarily including inventory and equipment. The net cash proceeds from the SVEDKA Divestiture were used for general corporate purposes, including funding share repurchases, capital expenditures, and repayment of debt. Prior to the SVEDKA Divestiture, we recorded the results of operations of the SVEDKA brand in the Wine and Spirits segment.

Mexicali Brewery sale

In July 2024, we sold the remaining assets classified as held for sale at the canceled Mexicali Brewery.

Assets held for sale

Certain wine and spirits net assets have met the held for sale criteria largely in connection with the 2025 Wine Divestitures (see below). The carrying values of these assets held for sale consist of the following:

	May 31, 2025		February 28, 2025
(in millions)
ASSETS
Inventories	$	760.1	$	788.7
Prepaid expenses and other	2.7		0.5
Property, plant, and equipment	457.7		474.4
Intangible assets	127.9		127.9
Other assets	71.9		—
Less: Assets held for sale impairment	(406.2)		(478.0)
Assets held for sale	1,014.1		913.5

	May 31, 2025		February 28, 2025
(in millions)
LIABILITIES
Other accrued expenses and liabilities	33.6		33.7
Deferred income taxes and other liabilities	82.8		—
Liabilities held for sale (1)	116.4		33.7
Net assets held for sale	$	897.7	$	879.8

(1)Liabilities held for sale are included in the consolidated balance sheets within the respective liability line items noted above.

SUBSEQUENT EVENT

2025 Wine Divestitures

On June 2, 2025, we sold and, in certain instances, exclusively licensed the trademarks of a portion of our wine and spirits business, primarily centered around our mainstream wine brands and associated inventory, wineries, vineyards, offices, and facilities. We received $857.6 million of net cash proceeds, subject to certain post-closing adjustments. The net cash proceeds from the 2025 Wine Divestitures were used for repayment of debt (see Note 10). Prior to the completion of the 2025 Wine Divestitures, we recorded the results of operations of the divested and exclusively licensed brands in the Wine and Spirits segment.