Annual report pursuant to Section 13 and 15(d)

Leases

v3.23.1
Leases
 12 Months Ended
Feb. 28, 2023
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,
2023		 February 28,
2022
(in millions)
Assets
Operating lease Other assets $ 442.5  $ 478.9 
Finance lease Property, plant, and equipment 26.9  21.8 
Total right-of-use assets $ 469.4  $ 500.7 
Liabilities
Current:
Operating lease Other accrued expenses and liabilities $ 81.4  $ 80.4 
Finance lease Current maturities of long-term debt 9.5  6.3 
Non-current:
Operating lease Deferred income taxes and other liabilities 417.4  457.3 
Finance lease Long-term debt, less current maturities 16.7  13.6 
Total lease liabilities $ 525.0  $ 557.6 
Lease cost
The components of total lease cost are as follows:
For the Years Ended

February 28,
2023		 February 28,
2022		 February 28,
2021
(in millions)
Operating lease cost $ 96.2  $ 89.5  $ 93.4 
Finance lease cost:
Amortization of right-of-use assets 9.2  5.8  11.0 
Interest on lease liabilities 1.1  0.5  0.5 
Short-term lease cost 6.6  8.4  9.2 
Variable lease cost 176.5  202.5  216.5 
Total lease cost $ 289.6  $ 306.7  $ 330.6 

Lease maturities
As of February 28, 2023, 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)
Fiscal 2024 $ 96.3  $ 10.9 
Fiscal 2025 83.1  8.1 
Fiscal 2026 58.8  5.2 
Fiscal 2027 48.2  3.8 
Fiscal 2028 40.5  1.4 
Thereafter 272.8  0.1 
Total lease payments (1)
599.7  29.5 
Less: Interest (100.9) (3.3)
Total lease liabilities $ 498.8  $ 26.2 
(1)Excludes $282.2 million of lease payments, primarily for a warehouse lease, that has been signed but not yet commenced as of February 28, 2023.

Related party transaction
We have a lease for office space with an affiliate of a director.

Supplemental information

 For the Years Ended
February 28,
2023		 February 28,
2022		 February 28,
2021
(in millions)
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows from operating leases $ 99.7  $ 92.7  $ 93.9 
Operating cash flows from finance leases $ 1.1  $ 0.5  $ 0.5 
Financing cash flows from finance leases $ 8.8  $ 5.9  $ 10.5 

For the Years Ended
February 28,
2023		 February 28,
2022		 February 28,
2021
(in millions)
Right-of-use assets obtained in exchange for new lease liabilities:
Operating leases $ 63.2  $ 93.8  $ 66.3 
Finance leases $ 10.1  $ 10.5  $ 11.6 
February 28,
2023		 February 28,
2022		 February 28,
2021
Weighted-average remaining lease term: (1)
Operating leases 11.8 years 12.1 years 12.8 years
Finance leases 3.3 years 3.3 years 2.9 years
Weighted-average discount rate:
Operating leases 3.3  % 3.0  % 3.2  %
Finance leases 6.3  % 3.4  % 1.2  %
(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,
2023		 February 28,
2022
(in millions)
Assets
Operating lease Other assets $ 442.5  $ 478.9 
Finance lease Property, plant, and equipment 26.9  21.8 
Total right-of-use assets $ 469.4  $ 500.7 
Liabilities
Current:
Operating lease Other accrued expenses and liabilities $ 81.4  $ 80.4 
Finance lease Current maturities of long-term debt 9.5  6.3 
Non-current:
Operating lease Deferred income taxes and other liabilities 417.4  457.3 
Finance lease Long-term debt, less current maturities 16.7  13.6 
Total lease liabilities $ 525.0  $ 557.6 
Lease cost
The components of total lease cost are as follows:
For the Years Ended

February 28,
2023		 February 28,
2022		 February 28,
2021
(in millions)
Operating lease cost $ 96.2  $ 89.5  $ 93.4 
Finance lease cost:
Amortization of right-of-use assets 9.2  5.8  11.0 
Interest on lease liabilities 1.1  0.5  0.5 
Short-term lease cost 6.6  8.4  9.2 
Variable lease cost 176.5  202.5  216.5 
Total lease cost $ 289.6  $ 306.7  $ 330.6 

Lease maturities
As of February 28, 2023, 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)
Fiscal 2024 $ 96.3  $ 10.9 
Fiscal 2025 83.1  8.1 
Fiscal 2026 58.8  5.2 
Fiscal 2027 48.2  3.8 
Fiscal 2028 40.5  1.4 
Thereafter 272.8  0.1 
Total lease payments (1)
599.7  29.5 
Less: Interest (100.9) (3.3)
Total lease liabilities $ 498.8  $ 26.2 
(1)Excludes $282.2 million of lease payments, primarily for a warehouse lease, that has been signed but not yet commenced as of February 28, 2023.

Related party transaction
We have a lease for office space with an affiliate of a director.

Supplemental information

 For the Years Ended
February 28,
2023		 February 28,
2022		 February 28,
2021
(in millions)
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows from operating leases $ 99.7  $ 92.7  $ 93.9 
Operating cash flows from finance leases $ 1.1  $ 0.5  $ 0.5 
Financing cash flows from finance leases $ 8.8  $ 5.9  $ 10.5 

For the Years Ended
February 28,
2023		 February 28,
2022		 February 28,
2021
(in millions)
Right-of-use assets obtained in exchange for new lease liabilities:
Operating leases $ 63.2  $ 93.8  $ 66.3 
Finance leases $ 10.1  $ 10.5  $ 11.6 
February 28,
2023		 February 28,
2022		 February 28,
2021
Weighted-average remaining lease term: (1)
Operating leases 11.8 years 12.1 years 12.8 years
Finance leases 3.3 years 3.3 years 2.9 years
Weighted-average discount rate:
Operating leases 3.3  % 3.0  % 3.2  %
Finance leases 6.3  % 3.4  % 1.2  %
(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.