Quarterly report pursuant to Section 13 or 15(d)

Acquisitions, Divestitures, and Business Transformation (Tables)

v3.20.2
Acquisitions, Divestitures, and Business Transformation (Tables)
 3 Months Ended
May 31, 2020
Business Combinations [Abstract]  
Components of gain on sale of business 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 (3.8)  
Gain on sale of business $ 73.5   
The carrying value of assets held for sale consist of the following:
May 31,
2020		 February 29, 2020
Wine and Spirits
Beer (1)
Wine and Spirits Consolidated
(in millions)
Assets
Accounts receivable $ —    $ 2.4    $ —    $ 2.4   
Inventories 570.2    13.7    576.9    590.6   
Prepaid expenses and other 20.0    2.8    32.7    35.5   
Assets held for sale - current 590.2    18.9    609.6    628.5   
Property, plant, and equipment 115.9    55.9    172.6    228.5   
Goodwill 290.6    4.7    304.3    309.0   
Intangible assets 375.2    28.2    384.0    412.2   
Equity method investments 0.4    —    1.0    1.0   
Other assets 26.3    24.8    26.3    51.1   
Less: Reserve for assets held for sale (432.0)   (42.7)   (407.0)   (449.7)  
Assets held for sale 376.4    70.9    481.2    552.1   
Liabilities
Accounts payable 6.9    0.2    0.6    0.8   
Other accrued expenses and liabilities 13.5    11.0    17.8    28.8   
Deferred income taxes and other liabilities —    33.3    —    33.3   
Liabilities held for sale (2)
20.4    44.5    18.4    62.9   
Net assets held for sale $ 946.2    $ 45.3    $ 1,072.4    $ 1,117.7   
(1)In March 2020, we completed the Ballast Point Divestiture.
(2)Liabilities held for sale are included in the Consolidated Balance Sheets at May 31, 2020, and February 29, 2020, within the respective liability line items noted above.
Components of wine and spirits optimization
We recognized charges in connection with our business transformation strategy which aligns our portfolio with consumer-led premiumization trends within the Wine and Spirits segment as follows:
For the Three Months
Ended May 31,
Results of Operations Location 2020 2019
(in millions)
Loss on inventory write-downs Cost of product sold $ 4.1    $ 27.2   
Contract termination costs Cost of product sold 16.9    15.8   
Employee termination costs Selling, general, and administrative expenses (1.3)   11.9   
Other costs Selling, general, and administrative expenses —    6.3   
Impairment of long-lived assets Impairment of assets held for sale 25.0    —   
$ 44.7    $ 61.2