Quarterly report pursuant to Section 13 or 15(d)

Goodwill

v3.23.3
Goodwill
 6 Months Ended
Aug. 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 
Purchase accounting allocations (2)
—  4.2  4.2 
Foreign currency translation adjustments 58.1  (2.1) 56.0 
Balance, August 31, 2023 $ 5,247.0  $ 2,738.6  $ 7,985.6 
(1)Purchase accounting allocations associated with the acquisitions of Austin Cocktails, Lingua Franca, and My Favorite Neighbor, LLC.
(2)Preliminary purchase accounting allocation associated with the June 2023 acquisition of the Domaine Curry wine brand.

Divestitures
Craft Beer Divestitures
In June 2023, we completed the Craft Beer Divestitures. Prior to the Craft Beer Divestitures, we recorded the results of operations of such craft beer brands in the Beer segment.

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.