Annual report pursuant to Section 13 and 15(d)

Property, Plant, and Equipment

v3.20.1
Property, Plant, and Equipment
 12 Months Ended
Feb. 29, 2020
Property, Plant and Equipment [Abstract]  
PROPERTY, PLANT, AND EQUIPMENT PROPERTY, PLANT, AND EQUIPMENT

The major components of property, plant, and equipment are as follows:
 
February 29, 2020 (1)
 
February 28,
2019
(in millions)
 
 
 
Land and land improvements
$
440.2

 
$
456.7

Vineyards
215.8

 
221.3

Buildings and improvements
975.1

 
1,067.3

Machinery and equipment
3,627.9

 
3,931.1

Motor vehicles
109.5

 
81.8

Construction in progress (2)
1,422.7

 
1,214.3

 
6,791.2

 
6,972.5

Less – Accumulated depreciation
(1,458.2
)
 
(1,705.2
)
 
$
5,333.0

 
$
5,267.3


(1) 
The property, plant, and equipment balance at February 29, 2020, excludes amounts reclassified to assets held for sale.
(2) 
Interest costs incurred during the expansion, construction, and optimization of facilities are capitalized to construction in progress. We capitalized interest costs of $37.2 million, $23.1 million, and $17.4 million for the years ended February 29, 2020, February 28, 2019, and February 28, 2018, respectively, primarily due to the Mexico Beer Expansion Projects.

Subsequent event
Mexicali Brewery
In fiscal 2017, we began construction of a new, state-of-the-art brewery located in Mexicali, Baja California, Mexico (the “Mexicali Brewery”). In March 2020, a public consultation was held on the construction of the Mexicali Brewery. We have initiated early stage discussions with government officials in Mexico regarding next steps for our brewery construction project and options elsewhere in the country following the result of the public consultation. These discussions have been positive and we will continue working with government officials to mutually agree upon a path forward. In the medium-term, we have ample capacity, based on current growth forecasts and production capabilities at the Nava and Obregon breweries, to meet consumer needs. As of February 29, 2020, we recognized approximately $700 million of capital expenditures for construction in progress and had an additional $275 million of committed costs, a portion of which are included in purchase commitments as they have a remaining contract term greater than one year (see Note 17).