Quarterly report pursuant to Section 13 or 15(d)

Goodwill

v2.4.0.6
Goodwill
6 Months Ended
Aug. 31, 2012
Goodwill and Intangible Assets Disclosure [Abstract]  
GOODWILL
GOODWILL:

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

 
Constellation
Wines
and Spirits
 
Crown
Imports
LLC
 
Consolidations
and
Eliminations
 
Consolidated
(in millions)
 
 
 
 
 
 
 
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

Purchase accounting allocations
9.3

 

 

 
9.3

Foreign currency translation adjustments
3.8

 

 

 
3.8

Balance, February 29, 2012
 
 
 
 
 
 
 
Goodwill
2,632.9

 
13.0

 
(13.0
)
 
2,632.9

Accumulated impairment losses

 

 

 

 
2,632.9

 
13.0

 
(13.0
)
 
2,632.9

Purchase accounting allocations
110.0

 

 

 
110.0

Foreign currency translation adjustments
(3.6
)
 

 

 
(3.6
)
Balance, August 31, 2012
 
 
 
 
 
 
 
Goodwill
2,739.3

 
13.0

 
(13.0
)
 
2,739.3

Accumulated impairment losses

 

 

 

 
$
2,739.3

 
$
13.0

 
$
(13.0
)
 
$
2,739.3



Ruffino –
For the year ended February 29, 2012, purchase accounting allocations of $9.3 million in the Constellation Wines and Spirits segment (formerly known as the Constellation Wines North America segment) consist of purchase accounting allocations associated with the acquisition of Ruffino S.r.l. (“Ruffino”) (see Note 9).

Mark West –
For the six months ended August 31, 2012, purchase accounting allocations of $110.0 million in the Constellation Wines and Spirits segment consist primarily of purchase accounting allocations associated with the acquisition of Mark West (as defined below). In July 2012, the Company acquired Mark West for $159.7 million, subject to post-closing adjustments. The transaction primarily includes the acquisition of the Mark West trademark, related inventories and certain grape supply contracts (“Mark West”). The purchase price was financed with revolver borrowings under the May 2012 Credit Agreement (as defined in Note 10). In accordance with the acquisition method of accounting, the identifiable assets acquired and the liabilities assumed have been measured at their acquisition-date fair values. The acquisition of Mark West was not material for purposes of supplemental disclosure per the FASB guidance on business combinations. The results of operations of Mark West are reported in the Constellation Wines and Spirits segment and are included in the consolidated results of operations of the Company from the date of acquisition.