7.        GOODWILL:

          The changes in the carrying amount of goodwill are as follows:

		Constellation				Constellation
		Wines				Wines
		North				Australia and				Crown				Consolidations
		America				Europe				Imports				and
		(“CWNA”)				(“CWAE”)				LLC				Eliminations				Consolidated
(in millions)
Balance, February 28, 2010
Goodwill		$	2,570.6			$	852.6			$	13.0			$	(13.0	)		$	3,423.2
Accumulated impairment losses			-				(852.6	)			-				-				(852.6	)
			2,570.6				-				13.0				(13.0	)			2,570.6
Foreign currency translation adjustments			49.2				-				-				-				49.2
Divestiture of business
Goodwill			-				(852.6	)			-				-				(852.6	)
Accumulated impairment losses			-				852.6				-				-				852.6
Balance, February 28, 2011
Goodwill			2,619.8				-				13.0				(13.0	)			2,619.8
Accumulated impairment losses			-				-				-				-				-
			2,619.8				-				13.0				(13.0	)			2,619.8
Foreign currency translation adjustments			12.9				-				-				-				12.9
Balance, August 31, 2011
Goodwill			2,632.7				-				13.0				(13.0	)			2,632.7
Accumulated impairment losses			-				-				-				-				-
		$	2,632.7			$	-			$	13.0			$	(13.0	)		$	2,632.7

          Divestiture of the Australian and U.K. Business –

          In January 2011, the Company sold 80.1% of its Australian and U.K. business (the “CWAE Divestiture”) at a transaction value of $266.2 million. As of August 31, 2011, the Company has received cash proceeds of $192.5 million, net of cash divested of $15.8 million, direct costs paid of $11.2 million and post-closing adjustments paid of $19.9 million. The Company has retained a less than 20% interest in its previously owned Australian and U.K. business, Accolade Wines (“Accolade”) (see Note 9). The following table summarizes the net gain recognized and the net cash proceeds received in connection with this divestiture.

(in millions)
Net assets sold		$	(734.1	)
Cash received from buyer, net of cash divested and post-closing adjustments paid			203.7
Retained interest in Accolade			48.2
Foreign currency reclassification			678.8
Indemnification liabilities (see Note 12)			(25.4	)
Direct costs to sell, paid and accrued			(13.2	)
Other			7.9
Net gain on sale			165.9
Loss on settlement of pension			(109.9	)
Net gain		$	56.0

          Of the $56.0 million net gain, $55.2 million was recognized for the fourth quarter of fiscal 2011. The Company recognized an $0.8 million net gain and a $0.6 million net loss for the six months and three months ended August 31, 2011, respectively. In addition, the Company’s CWAE segment recorded an additional net gain of $28.5 million for the fourth quarter of fiscal 2011, primarily associated with a net gain on derivative instruments of $20.8 million, related to this divestiture. For the six months and three months ended August 31, 2011, the Company recorded an additional net loss of $0.7 million and $0.1 million, respectively, related to this divestiture. Total net gains associated with this divestiture of $83.8 million are included in selling, general and administrative expenses on the Company’s Consolidated Statements of Operations. Of this amount, $83.7 million of net gains was recognized for the year ended February 28, 2011, $0.1 million of net gains was recognized for the six months ended August 31, 2011, and $0.7 million of net losses was recognized for the three months ended August 31, 2011.