Annual report pursuant to Section 13 and 15(d)

Acquisitions, Divestitures, and Business Transformation (Tables)

v3.20.1
Acquisitions, Divestitures, and Business Transformation (Tables)
 12 Months Ended
Feb. 29, 2020
Business Combinations [Abstract]  
Components of gain on sale of businesses and assets held for sale The following table summarizes the net gain recognized in connection with this divestiture:
(in millions)
 
Cash received from buyer
$
269.7

Net assets sold
(213.3
)
AOCI reclassification adjustments, primarily foreign currency translation
20.9

Direct costs to sell
(3.2
)
Gain on sale of business
$
74.1


The carrying value of assets held for sale consists of the following:
 
February 29, 2020
 
Beer
 
Wine and Spirits
 
Consolidated
(in millions)
 
 
 
 
 
Assets
 
 
 
 
 
Accounts receivable
$
2.4

 
$
—

 
$
2.4

Inventories
13.7

 
576.9

 
590.6

Prepaid expenses and other
2.8

 
32.7

 
35.5

Assets held for sale - current
18.9

 
609.6

 
628.5

 
 
 
 
 
 
Property, plant, and equipment
55.9

 
172.6

 
228.5

Goodwill
4.7

 
304.3

 
309.0

Intangible assets
28.2

 
384.0

 
412.2

Equity method investments
—

 
1.0

 
1.0

Other assets
24.8

 
26.3

 
51.1

Less: Reserve for assets held for sale
(42.7
)
 
(407.0
)
 
(449.7
)
Assets held for sale
70.9

 
481.2

 
552.1

 
 
 
 
 
 
Liabilities
 
 
 
 
 
Other accrued expenses and liabilities
11.2

 
18.4

 
29.6

Deferred income taxes and other liabilities
33.3

 
—

 
33.3

Liabilities held for sale (1)
44.5

 
18.4

 
62.9

Net assets held for sale
$
45.3

 
$
1,072.4

 
$
1,117.7

(1) 
Liabilities held for sale are included in the Consolidated Balance Sheet as of February 29, 2020, within the respective liability line items noted above.

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 Year Ended February 29, 2020
(in millions)
 
 
 
Loss on inventory write-downs
Cost of product sold
 
$
102.9

Contract termination costs
Cost of product sold
 
20.1

Employee termination costs
Selling, general, and administrative expenses
 
12.5

Other costs
Selling, general, and administrative expenses
 
8.4

Impairment of long-lived assets
Impairment of assets held for sale
 
407.0

 
 
 
$
550.9