Commitments and Contingencies

v2.4.1.9

Commitments and Contingencies	12 Months Ended
	Feb. 28, 2015
Commitments and Contingencies Disclosure [Abstract]
COMMITMENTS AND CONTINGENCIES	COMMITMENTS AND CONTINGENCIES: Operating leases – The minimum lease payments for our operating leases are recognized on a straight-line basis over the minimum lease term. Step rent provisions, escalation clauses, capital improvement funding and other lease concessions, when present in our leases, are taken into account in computing the minimum lease payments. Future payments under noncancelable operating leases having initial or remaining terms of one year or more are as follows for each of the five succeeding fiscal years and thereafter: (in millions)   2016 $ 48.4 2017 42.7 2018 36.7 2019 33.4 2020 29.2 Thereafter 202.1   $ 392.5 Rental expense was $58.9 million, $65.1 million and $60.4 million for the years ended February 28, 2015, February 28, 2014, and February 28, 2013, respectively. Purchase commitments and contingencies – We have entered into various long-term contracts in the normal course of business for the purchase of (i)  certain inventory components, (ii)  property, plant and equipment and related contractor and manufacturing services, (iii)  processing and warehousing services and (iv)  certain energy requirements. As of February 28, 2015, the estimated aggregate minimum purchase obligations under these contracts are as follows:   Type   Length of Commitment   Amount (in millions)           Raw materials and supplies (1) Grapes, packaging and other raw materials   through December 2027   $ 5,377.3 In-process inventories Bulk wine   through December 2016   29.7 Finished case goods (2) Beer   through December 2015   469.0 Capital expenditures (3) Property, plant and equipment, and contractor and manufacturing services   through February 2018   1,463.7 Other (4) Processing and warehousing services, energy contracts   through December 2027   168.1           $ 7,507.8 (1)  Grape purchase contracts require the purchase of grape production yielded from a specified number of acres. The actual tonnage and price of grapes that we must purchase will vary each year depending on certain factors, including weather, time of harvest, overall market conditions and the agricultural practices and location of the growers and suppliers under contract. (2)  Consists of a minimum purchase obligation under the interim supply agreement for finished goods entered into in connection with the Beer Business Acquisition. (3)  Consists of purchase commitments entered into primarily in connection with the Brewery and glass production plant expansions. (4)  Includes commitments to utilize outside services to process, package and/or store a minimum volume quantity, as well as for the purchase of certain energy requirements. Indemnification liabilities – In connection with a prior divestiture, we indemnified respective parties against certain liabilities that may arise related to certain contracts with certain investees of the divested business, a certain facility in the U.K. and certain income tax matters. During the year ended February 28, 2015, we were released from one of our guarantees, resulting in a gain of $7.5 million. This gain is included in selling, general and administrative expenses. As of February 28, 2015, and February 28, 2014, the carrying amount of these indemnification liabilities was $3.7 million and $11.6 million, respectively, and is included in other liabilities. If the indemnified party were to incur a liability, pursuant to the terms of the indemnification, we would be required to reimburse the indemnified party. As of February 28, 2015, we estimate that these indemnifications could require us to make potential future payments of up to $71.2 million under these indemnifications with $57.6 million of this amount able to be recovered by us from third parties under recourse provisions. We do not expect to be required to make material payments under the indemnifications and we believe that the likelihood is remote that the indemnifications could have a material adverse effect on our financial position, results of operations, cash flows or liquidity. Employment contracts – We have employment contracts with our executive officers and certain other management personnel with either automatic one year renewals after an initial term or an indefinite term of employment unless terminated by either party. These employment contracts provide for minimum salaries, as adjusted for annual increases, and may include incentive bonuses based upon attainment of specified goals. These employment contracts may also provide for severance payments in the event of specified termination of employment. In addition, we have employment arrangements with certain other management personnel which provide for severance payments in the event of specified termination of employment. As of February 28, 2015, the aggregate commitment for potential future compensation and severance, excluding incentive bonuses, was $40.4 million, of which $9.6 million was accrued. Employees covered by collective bargaining agreements – Approximately 14% of our employees are covered by collective bargaining agreements at February 28, 2015. Agreements expiring within one year cover approximately 7% of our employees. Legal matters – In the course of its business, we are subject to litigation from time to time. Although the amount of any liability with respect to such litigation cannot be determined, in the opinion of management, such liability will not have a material adverse effect on our financial condition, results of operations or cash flows.