Annual report pursuant to Section 13 and 15(d)

Acquisitions, Divestitures, and Business Transformation (Tables)

v3.21.1
Acquisitions, Divestitures, and Business Transformation (Tables)
 12 Months Ended
Feb. 28, 2021
Business Combinations [Abstract]  
Components of gain (loss) on sale of businesses and assets held for sale The following table summarizes the net gain recognized in connection with this divestiture for the year ended February 28, 2021:
(in millions)
Cash received from buyer $ 267.4 
Net assets sold (201.3)
Contract termination (4.0)
Direct costs to sell (3.2)
Gain on sale of business $ 58.9 
The following table summarizes the net loss recognized in connection with these divestitures for the year ended February 28, 2021:
(in millions)
Cash received from buyer $ 667.4 
Net assets sold (671.7)
Transition services agreements (13.0)
Direct costs to sell (8.1)
AOCI reclassification adjustments, primarily foreign currency translation (5.1)
Other (5.2)
Loss on sale of business $ (35.7)
The following table summarizes the net gain recognized in connection with this divestiture:
(in millions)
Cash received from buyer $ 266.7 
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 $ 70.5 
The carrying value of assets held for sale consisted of the following:
February 29, 2020
Beer Wine and Spirits Consolidated
(in millions)
Assets
Accounts receivable $ 2.4  $ —  $ 2.4 
Inventories 13.7  576.9  590.6 
Prepaid expenses and other 2.8  32.7  35.5 
Assets held for sale - current 18.9  609.6  628.5 
February 29, 2020
Beer Wine and Spirits Consolidated
(in millions)
Property, plant, and equipment 55.9  172.6  228.5 
Goodwill 4.7  304.3  309.0 
Intangible assets 28.2  384.0  412.2 
Equity method investments —  1.0  1.0 
Other assets 24.8  26.3  51.1 
Less: Reserve for assets held for sale (42.7) (407.0) (449.7)
Assets held for sale 70.9  481.2  552.1 
Liabilities
Accounts payable 0.2  0.6  0.8 
Other accrued expenses and liabilities 11.0  17.8  28.8 
Deferred income taxes and other liabilities 33.3  —  33.3 
Liabilities held for sale (1)
44.5  18.4  62.9 
Net assets held for sale $ 45.3  $ 1,072.4  $ 1,117.7 
(1)Liabilities held for sale are included in the Consolidated Balance Sheet as of February 29, 2020, within the respective liability line items noted above.
Components of wine and spirits optimization
We recognized restructuring and other strategic business development costs 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 Years Ended
Results of Operations Location February 28,
2021		 February 29, 2020
(in millions)
Contract termination costs Cost of product sold $ 20.9  $ 20.1 
Loss on inventory write-downs Cost of product sold 4.7  102.9 
Employee termination costs Selling, general, and administrative expenses 4.1  12.5 
Other costs Selling, general, and administrative expenses 9.7  8.4 
Impairment of long-lived assets Impairment of assets held for sale 24.0  407.0 
$ 63.4  $ 550.9