Quarterly report pursuant to Section 13 or 15(d)

Goodwill

v3.23.2
Goodwill
 3 Months Ended
May 31, 2023
Goodwill and Intangible Assets Disclosure [Abstract]  
GOODWILL GOODWILL
The changes in the carrying amount of goodwill are as follows:
Beer Wine and Spirits Consolidated
(in millions)
Balance, February 28, 2022 $ 5,120.7  $ 2,741.7  $ 7,862.4 
Purchase accounting allocations (1)
—  26.3  26.3 
Wine Divestiture —  (24.5) (24.5)
Foreign currency translation adjustments 68.2  (7.0) 61.2 
Balance, February 28, 2023 5,188.9  2,736.5  7,925.4 
Foreign currency translation adjustments 30.1  (1.6) 28.5 
Balance, May 31, 2023 $ 5,219.0  $ 2,734.9  $ 7,953.9 
(1)Purchase accounting allocations associated with the acquisitions of Austin Cocktails, Lingua Franca, and My Favorite Neighbor, LLC.

Divestiture
Wine Divestiture
On October 6, 2022, we sold certain of our mainstream and premium wine brands and related inventory. The net cash proceeds from the Wine Divestiture were utilized primarily to reduce outstanding borrowings. Prior to the Wine Divestiture, we recorded the results of operations of these brands in the Wine and Spirits segment.

Acquisitions
Austin Cocktails
In April 2022, we acquired the remaining 73% ownership interest in Austin Cocktails, which included a portfolio of small batch, RTD cocktails. This transaction primarily included the acquisition of goodwill and a trademark. In addition, the purchase price for Austin Cocktails includes an earn-out over five years based on performance. The results of operations of Austin Cocktails are reported in the Wine and Spirits segment and have been included in our consolidated results of operations from the date of acquisition.

Lingua Franca
In March 2022, we acquired the Lingua Franca business, including a collection of Oregon-based luxury wines, a vineyard, and a production facility. This transaction also included the acquisition of a trademark and inventory. In addition, the purchase price for Lingua Franca includes an earn-out over seven years based on performance. The results of operations of Lingua Franca are reported in the Wine and Spirits segment and have been included in our consolidated results of operations from the date of acquisition.

Subsequent event
Craft Beer Divestitures
In June 2023, we completed the Craft Beer Divestitures. The Craft Beer Divestitures are consistent with our strategic focus on continuing to grow our high-end imported beer brands through maintenance of leading margins and enhancements to our results of operations.