Quarterly report pursuant to Section 13 or 15(d)

Goodwill

v3.5.0.1
Goodwill
 3 Months Ended
May 31, 2016
Goodwill and Intangible Assets Disclosure [Abstract]  
GOODWILL
GOODWILL:

The changes in the carrying amount of goodwill are as follows:
 
Beer
 
Wine and Spirits
 
Consolidated
(in millions)
 
 
 
 
 
Balance, February 28, 2015
$
3,776.2

 
$
2,432.0

 
$
6,208.2

Purchase accounting allocations (1)
761.8

 
203.3

 
965.1

Foreign currency translation adjustments
(7.9
)
 
(26.8
)
 
(34.7
)
Balance, February 29, 2016
4,530.1

 
2,608.5

 
7,138.6

Purchase accounting allocations (2)
(0.1
)
 
204.8

 
204.7

Foreign currency translation adjustments
(0.7
)
 
7.6

 
6.9

Balance, May 31, 2016
$
4,529.3

 
$
2,820.9

 
$
7,350.2


(1) 
Purchase accounting allocations associated with the acquisitions of Ballast Point (as defined below) (Beer) and Meiomi (as defined below) (Wine and Spirits).
(2) 
Preliminary purchase accounting allocations associated primarily with the acquisition of Prisoner (as defined below) (Wine and Spirits).

As of May 31, 2016, and February 29, 2016, we have accumulated impairment losses of $220.8 million and $213.5 million, respectively, within our Wine and Spirits segment. The change between periods is due to foreign currency translation adjustments.

Prisoner –
In April 2016, we acquired The Prisoner Wine Company business, consisting primarily of trademarks, related inventories and certain grape supply contracts, for $284.9 million (“Prisoner”). The results of operations of Prisoner are reported in the Wine and Spirits segment and have been included in our results of operations from the date of acquisition.

Ballast Point –
In December 2015, we acquired all of the issued and outstanding common and preferred stock of Home Brew Mart, Inc. d/b/a/ Ballast Point Brewing & Spirits (“Ballast Point”). The following table summarizes the allocation of the estimated fair value for the significant assets acquired:
(in millions)
 
Goodwill
$
761.7

Trademarks
222.8

Other
15.5

Total estimated fair value
1,000.0

Less – cash acquired
(1.5
)
Purchase price
$
998.5



Goodwill associated with the acquisition is primarily attributable to the future growth opportunities associated with the acquisition of a high-growth premium platform that will enable us to compete in the fast-growing craft beer category, further strengthening our position in the high-end U.S. beer market. None of the goodwill recognized is expected to be deductible for income tax purposes. The results of operations of Ballast Point are reported in the Beer segment and have been included in our consolidated results of operations from the date of acquisition.

Meiomi –
In August 2015, we acquired the Meiomi wine business, consisting primarily of the trademark, related inventories and certain grape supply contracts, for $316.2 million (“Meiomi”). The results of operations of Meiomi are reported in the Wine and Spirits segment and have been included in our consolidated results of operations from the date of acquisition.