Annual report pursuant to Section 13 and 15(d)

Leases

v3.21.1
Leases
 12 Months Ended
Feb. 28, 2021
Leases [Abstract]  
LEASES, OPERATING LEASES
General
We primarily lease certain vineyards, office and production facilities, warehouses, production equipment, and vehicles. We have concluded that certain grape purchasing arrangements associated with the purchase of grape production yielded from a specified block of a vineyard and certain third-party logistics arrangements contain a lease.

Balance sheet location
A summary of lease right-of-use assets and liabilities are as follows:
Balance Sheet Classification February 28,
2021		 February 29,
2020
(in millions)
Assets
Operating lease Other assets $ 477.9  $ 481.4 
Finance lease Property, plant, and equipment 17.0  26.6 
Total right-of-use assets $ 494.9  $ 508.0 
Liabilities
Current:
Operating lease Other accrued expenses and liabilities $ 68.8  $ 76.6 
Finance lease Current maturities of long-term debt 4.6  11.7 
Non-current:
Operating lease Deferred income taxes and other liabilities 471.1  483.6 
Finance lease Long-term debt, less current maturities 10.9  13.6 
Total lease liabilities $ 555.4  $ 585.5 

Lease cost
The components of total lease cost are as follows:
For the Years Ended

February 28,
2021		 February 29,
2020
(in millions)
Operating lease cost $ 93.4  $ 98.9 
Finance lease cost:
Amortization of right-of-use assets 11.0  12.2 
Interest on lease liabilities 0.5  0.7 
Short-term lease cost 9.2  8.6 
Variable lease cost (1)
216.5  403.3 
Total lease cost $ 330.6  $ 523.7 
(1)The decrease for the year ended February 28, 2021, was primarily due to (i) transfers of grape purchasing agreements largely in connection with our Wine and Spirits Divestitures and (ii) reduced grape supply availability due to the 2020 U.S. wildfires (see Note 16).
Lease maturities (1)
As of February 28, 2021, minimum payments due for lease liabilities for each of the five succeeding fiscal years and thereafter are as follows:
Operating Leases Finance Leases
(in millions)
2022 $ 84.6  $ 4.8 
2023 73.3  4.7 
2024 66.7  4.2 
2025 54.6  2.1 
2026 44.1  — 
Thereafter 336.0  — 
Total lease payments 659.3  15.8 
Less: Interest (119.4) (0.3)
Total lease liabilities $ 539.9  $ 15.5 
(1)For leases with terms in excess of 12 months at inception.

Supplemental information

 For the Years Ended
February 28,
2021		 February 29,
2020
(in millions)
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows from operating leases $ 93.9  $ 100.7 
Operating cash flows from finance leases $ 0.5  $ 0.7 
Financing cash flows from finance leases $ 10.5  $ 13.8 
Right-of-use assets obtained in exchange for new lease liabilities:
Operating leases $ 66.3  $ 34.3 
Finance leases $ 11.6  $ 10.7 
February 28, 2021 February 29, 2020
Weighted-average remaining lease term: (1)
Operating leases 12.8 years 11.7 years
Finance leases 2.9 years 3.2 years
Weighted-average discount rate:
Operating leases 3.2  % 3.5  %
Finance leases 1.2  % 2.6  %
(1)Our leases have varying terms with remaining lease terms of up to approximately 30 years. Certain of our lease arrangements provide us with the option to extend or to terminate the lease early.
LEASES, FINANCE LEASES
General
We primarily lease certain vineyards, office and production facilities, warehouses, production equipment, and vehicles. We have concluded that certain grape purchasing arrangements associated with the purchase of grape production yielded from a specified block of a vineyard and certain third-party logistics arrangements contain a lease.

Balance sheet location
A summary of lease right-of-use assets and liabilities are as follows:
Balance Sheet Classification February 28,
2021		 February 29,
2020
(in millions)
Assets
Operating lease Other assets $ 477.9  $ 481.4 
Finance lease Property, plant, and equipment 17.0  26.6 
Total right-of-use assets $ 494.9  $ 508.0 
Liabilities
Current:
Operating lease Other accrued expenses and liabilities $ 68.8  $ 76.6 
Finance lease Current maturities of long-term debt 4.6  11.7 
Non-current:
Operating lease Deferred income taxes and other liabilities 471.1  483.6 
Finance lease Long-term debt, less current maturities 10.9  13.6 
Total lease liabilities $ 555.4  $ 585.5 

Lease cost
The components of total lease cost are as follows:
For the Years Ended

February 28,
2021		 February 29,
2020
(in millions)
Operating lease cost $ 93.4  $ 98.9 
Finance lease cost:
Amortization of right-of-use assets 11.0  12.2 
Interest on lease liabilities 0.5  0.7 
Short-term lease cost 9.2  8.6 
Variable lease cost (1)
216.5  403.3 
Total lease cost $ 330.6  $ 523.7 
(1)The decrease for the year ended February 28, 2021, was primarily due to (i) transfers of grape purchasing agreements largely in connection with our Wine and Spirits Divestitures and (ii) reduced grape supply availability due to the 2020 U.S. wildfires (see Note 16).
Lease maturities (1)
As of February 28, 2021, minimum payments due for lease liabilities for each of the five succeeding fiscal years and thereafter are as follows:
Operating Leases Finance Leases
(in millions)
2022 $ 84.6  $ 4.8 
2023 73.3  4.7 
2024 66.7  4.2 
2025 54.6  2.1 
2026 44.1  — 
Thereafter 336.0  — 
Total lease payments 659.3  15.8 
Less: Interest (119.4) (0.3)
Total lease liabilities $ 539.9  $ 15.5 
(1)For leases with terms in excess of 12 months at inception.

Supplemental information

 For the Years Ended
February 28,
2021		 February 29,
2020
(in millions)
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows from operating leases $ 93.9  $ 100.7 
Operating cash flows from finance leases $ 0.5  $ 0.7 
Financing cash flows from finance leases $ 10.5  $ 13.8 
Right-of-use assets obtained in exchange for new lease liabilities:
Operating leases $ 66.3  $ 34.3 
Finance leases $ 11.6  $ 10.7 
February 28, 2021 February 29, 2020
Weighted-average remaining lease term: (1)
Operating leases 12.8 years 11.7 years
Finance leases 2.9 years 3.2 years
Weighted-average discount rate:
Operating leases 3.2  % 3.5  %
Finance leases 1.2  % 2.6  %
(1)Our leases have varying terms with remaining lease terms of up to approximately 30 years. Certain of our lease arrangements provide us with the option to extend or to terminate the lease early.