Quarterly report pursuant to Section 13 or 15(d)

Business Transformation (Tables)

v3.19.3.a.u2
Business Transformation (Tables)
 9 Months Ended
Nov. 30, 2019
Text Block [Abstract]  
Components of gain on sale of business and assets held for sale
The carrying value of assets held for sale consists of the following:
 
November 30, 2019
 
Beer
 
Wine and Spirits
 
Total
(in millions)
 
 
 
 
 
Assets
 
 
 
 
 
Inventories
$
14.7

 
$
699.1

 
$
713.8

Prepaid expenses and other
1.3

 
9.7

 
11.0

Assets held for sale - current
16.0

 
708.8

 
724.8

 
 
 
 
 
 
 
November 30, 2019
 
Beer
 
Wine and Spirits
 
Total
(in millions)
 
 
 
 
 
Property, plant, and equipment
58.6

 
171.0

 
229.6

Goodwill
4.5

 
280.2

 
284.7

Intangible assets
28.2

 
384.0

 
412.2

Equity method investments
—

 
1.0

 
1.0

Other assets
25.6

 
26.4

 
52.0

Less: Reserve for assets held for sale
(50.0
)
 
(367.0
)
 
(417.0
)
Assets held for sale
66.9

 
495.6

 
562.5

 
 
 
 
 
 
Liabilities
 
 
 
 
 
Other accrued expenses and liabilities
9.3

 
26.8

 
36.1

Deferred income taxes and other liabilities
31.5

 
0.4

 
31.9

Liabilities held for sale (1)
40.8

 
27.2

 
68.0

Net assets held for sale
$
42.1

 
$
1,177.2

 
$
1,219.3

(1) 
Liabilities held for sale are included in the Consolidated Balance Sheet as of November 30, 2019, within the respective liability line items noted above.
The following table summarizes the net gain recognized in connection with this transaction for the nine months and three months ended November 30, 2019:
 
 
 
(in millions)
 
 
Cash received from buyer
 
$
269.7

Net assets sold
 
(211.5
)
AOCI reclassification adjustments, primarily foreign currency translation
 
21.0

Direct costs to sell
 
(3.2
)
Gain on sale of business
 
$
76.0


Components of wine and spirits optimization
We recognized charges in connection with our ongoing efforts to gain efficiencies and reduce our cost structure within the Wine and Spirits segment as follows:
 
Results of Operations Location
 
For the Nine Months Ended November 30, 2019
 
For the Three Months Ended November 30, 2019
(in millions)
 
 
 
 
 
Loss on inventory write-downs
Cost of product sold
 
$
102.6

 
$
61.7

Contract termination costs
Cost of product sold
 
20.1

 
—

Employee termination costs
Selling, general, and administrative expenses
 
12.3

 
0.2

Other costs
Selling, general, and administrative expenses
 
8.0

 
1.7

Impairment of long-lived assets
Impairment of assets held for sale
 
367.0

 
340.0

 
 
 
$
510.0

 
$
403.6