Quarterly report pursuant to Section 13 or 15(d)

Goodwill

v3.10.0.1
Goodwill
 6 Months Ended
Aug. 31, 2018
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, 2017
$
5,053.0

 
$
2,867.5

 
$
7,920.5

Purchase accounting allocations (1)
63.9

 
56.2

 
120.1

Foreign currency translation adjustments
40.7

 
1.8

 
42.5

Balance, February 28, 2018
5,157.6

 
2,925.5

 
8,083.1

Purchase accounting allocations (2)
19.7

 
0.5

 
20.2

Foreign currency translation adjustments
(10.8
)
 
(9.9
)
 
(20.7
)
Balance, August 31, 2018
$
5,166.5

 
$
2,916.1

 
$
8,082.6


(1) 
Purchase accounting allocations associated primarily with the acquisitions of a brewery operation business in Obregon, Sonora, Mexico (the “Obregon Brewery”) ($13.8 million) and Funky Buddha (Beer), and Schrader Cellars (Wine and Spirits). See defined acquisition terms below.
(2) 
Preliminary purchase accounting allocations associated primarily with the acquisition of Four Corners (Beer). See defined acquisition term below.
Acquisitions –
Four Corners:
In July 2018, we acquired the Four Corners Brewing Company LLC business, a portfolio of high-performing, dynamic and bicultural, Texas-based craft beers (“Four Corners”). This transaction primarily included the acquisition of operations, goodwill, property, plant and equipment, and trademarks, plus an earn-out over five years based on the performance of the brands. The results of operations of Four Corners are reported in the Beer segment and have been included in our consolidated results of operations from the date of acquisition.
Other:
During the year ended February 28, 2018, we completed the acquisitions of other businesses, including the Funky Buddha Brewery LLC business, which included a portfolio of high-quality, Florida-based craft beers (“Funky Buddha”), and the Schrader Cellars, LLC business, which included a collection of highly-rated, limited-production fine wines (“Schrader Cellars”). The total combined purchase price for these acquisitions was $149.8 million. The purchase price for each acquisition was primarily allocated to goodwill and trademarks. In addition, the purchase price for Funky Buddha includes an earn-out over five years based on the performance of the brands. The results of operations of these acquired brands are reported in the respective segment and have been included in our consolidated results of operations from their respective date of acquisition.

Subsequent event:
Subsequent to August 31, 2018, we acquired a business in Italy, consisting primarily of a production facility, vineyards and inventory, to provide for additional processing and sourcing capabilities for our Italian wine portfolio.