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v3.26.1

Income Taxes (Tables) | 12 Months Ended
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Feb. 28, 2026
Income Tax Disclosure [Abstract] |
Income (loss) before income taxes | Income (loss) before income taxes was generated as follows:
| For the Years Ended
| February 28, 2026 |  | February 28, 2025 |  | February 29, 2024
(in millions) |  |  |  |  |
Domestic | $ | (83.9) |  |  | $ | (2,633.0) |  |  | $ | (140.2) |
Foreign | 2,461.7 |  |  | 2,550.2 |  |  | 2,362.0 |
| $ | 2,377.8 |  |  | $ | (82.8) |  |  | $ | 2,221.8 |
Components of income tax provision (benefit) | The income tax provision (benefit) consisted of the following:
| For the Years Ended
| February 28, 2026 |  | February 28, 2025 |  | February 29, 2024
(in millions) |  |  |  |  |
Current |  |  |  |  |
Federal | $ | 161.7 |  |  | $ | 16.7 |  |  | $ | 152.6 |
State | 15.9 |  |  | 25.9 |  |  | 16.4 |
Foreign | (67.1) |  |  | 116.0 |  |  | 139.7 |
Total current | 110.5 |  |  | 158.6 |  |  | 308.7 |
Deferred |  |  |  |  |
Federal | 94.9 |  |  | (436.4) |  |  | 27.7 |
State | 19.2 |  |  | (73.1) |  |  | (19.0) |
Foreign | 396.4 |  |  | 299.2 |  |  | 139.2 |
Total deferred | 510.5 |  |  | (210.3) |  |  | 147.9 |
Income tax provision (benefit) | $ | 621.0 |  |  | $ | (51.7) |  |  | $ | 456.6 |
Effective income tax rate reconciliation | A reconciliation of the total tax provision (benefit) to the amount computed by applying the statutory U.S. federal income tax rate to income before provision for (benefit from) income taxes for the year ended February 28, 2026, is as follows:
| Amount |  | % of Pretax Income (Loss)
(in millions, except % of pretax income (loss) data) |  |
Income tax provision (benefit) at statutory rate | $ | 499.3 |  | 21.0%
State and local income taxes, net of federal income tax provision (benefit) (1) | 24.9 |  | 1.0%
Earnings taxed at other than U.S. statutory rate: |  |  |
Switzerland |  |  |
Statutory income tax difference between Switzerland and U.S. | (62.5) |  | (2.6%)
Canton income tax | 81.0 |  | 3.4%
Changes in valuation allowances | 184.7 |  | 7.8%
Other | (14.0) |  | (0.6%)
Malta |  |  |
Statutory income tax difference between Malta and U.S. | 121.6 |  | 5.1%
Changes in valuation allowances | 353.6 |  | 14.9%
Interest limitation | (353.6) |  | (14.9%)
Nontaxable or nondeductible items, net | (297.2) |  | (12.5%)
| Amount |  | % of Pretax Income (Loss)
(in millions, except % of pretax income (loss) data) |  |
Other foreign jurisdictions |  |  |
Other | (21.3) |  | (0.9%)
Effect of cross-border tax laws: |  |  |
Global intangible low-taxed income | 187.8 |  | 7.9%
Other | 53.9 |  | 2.3%
Tax credits | (3.4) |  | (0.1%)
Changes in valuation allowances | 51.0 |  | 2.1%
Nontaxable or nondeductible items, net | 60.6 |  | 2.5%
Changes in unrecognized tax benefits | (245.4) |  | (10.3%)
Income tax provision (benefit) at effective rate | $ | 621.0 |  | 26.1%
(1)State taxes in California, New York, and Illinois are attributable to greater than 50% of the net income tax provision (benefit) for the year ended February 28, 2026. A reconciliation of the total tax provision (benefit) to the amount computed by applying the statutory U.S. federal income tax rate to income before provision for (benefit from) income taxes is as follows:
| February 28, 2025 |  | February 29, 2024
| Amount |  | % of Pretax Income (Loss) |  | Amount |  | % of Pretax Income (Loss)
(in millions, except % of pretax income (loss) data) |  |  |  |  |  |  |
Income tax provision (benefit) at statutory rate | $ | (17.4) |  |  | 21.0 | % |  | $ | 466.6 |  |  | 21.0 | %
State and local income taxes, net of federal income tax provision (benefit) (1) | (31.2) |  |  | 37.7 | % |  | 35.9 |  |  | 1.6 | %
Net income tax benefit from a tax entity classification change | — |  |  | — | % |  | (31.2) |  |  | (1.4 | %)
Earnings taxed at other than U.S. statutory rate (2) | (241.0) |  |  | 291.1 | % |  | (75.9) |  |  | (3.4 | %)
Net income tax provision (benefit) from legislative changes (3) | — |  |  | — | % |  | (9.6) |  |  | (0.4 | %)
Wine and Spirits-related impairments including the non-deductible portion of the wine and spirits goodwill impairment | 253.3 |  |  | (306.0 | %) |  | — |  |  | — | %
Excess tax benefits from stock-based compensation awards (4) | (5.3) |  |  | 6.4 | % |  | (8.0) |  |  | (0.4 | %)
Net income tax provision (benefit) recognized for adjustment to valuation allowance (5) | 24.1 |  |  | (29.1 | %) |  | 86.2 |  |  | 3.9 | %
Net income tax provision (benefit) in connection with sale of the remaining assets at the canceled Mexicali Brewery | (22.2) |  |  | 26.8 | % |  | — |  |  | — | %
Net income tax provision (benefit) for various U.S. income tax credits | (14.1) |  |  | 17.0 | % |  | — |  |  | — | %
Net income tax provision (benefit) in connection with the SVEDKA Divestiture | 6.0 |  |  | (7.2 | %) |  | — |  |  | — | %
Miscellaneous items, net | (3.9) |  |  | 4.7 | % |  | (7.4) |  |  | (0.3 | %)
Income tax provision (benefit) at effective rate | $ | (51.7) |  |  | 62.4 | % |  | $ | 456.6 |  |  | 20.6 | %
(1)Includes differences resulting from adjustments to the current and deferred state effective tax rates. (2)Consists of the following (i) difference between the U.S. statutory rate and local jurisdiction tax rates, (ii) the provision for incremental U.S. taxes on earnings of certain foreign subsidiaries offset by foreign tax credits, (iii) the non-U.S. portion of tax provision (benefit) recorded on the unrealized net gain (loss) from the changes in fair value of our investment in Canopy, and (iv) the non-U.S. portion of tax benefits recorded on the Canopy equity in earnings (losses) and related activities. (3)The year ended February 29, 2024, represents a net income tax benefit resulting from the remeasurement of our deferred tax assets in connection with a legislative update in Switzerland. (4)Represents the recognition of the income tax effect of stock-based compensation awards in the income statement when the awards vest or are settled. (5)The year ended February 28, 2025, consists primarily of valuation allowances related to net operating losses and the year ended February 29, 2024, consists primarily of valuation allowances related to our investment in Canopy.
Schedule of Unrecognized Tax Benefits Roll Forward | The liability for income taxes associated with uncertain tax positions, excluding interest and penalties, and a reconciliation of the beginning and ending unrecognized tax benefit liabilities is as follows:
| For the Years Ended
| February 28, 2026 |  | February 28, 2025 |  | February 29, 2024
(in millions) |  |  |  |  |
Balance as of March 1 | $ | 318.9 |  |  | $ | 416.1 |  |  | $ | 344.3 |
Increases as a result of tax positions taken during a prior period | 46.9 |  |  | 51.8 |  |  | 48.1 |
Decreases as a result of tax positions taken during a prior period | (102.2) |  |  | (124.7) |  |  | (2.5) |
Increases as a result of tax positions taken during the current period | 50.6 |  |  | 28.0 |  |  | 31.5 |
Decreases related to settlements with tax authorities | (46.3) |  |  | (43.9) |  |  | (2.8) |
Decreases related to lapse of applicable statute of limitations | (13.8) |  |  | (8.4) |  |  | (2.5) |
Balance as of last day of February | $ | 254.1 |  |  | $ | 318.9 |  |  | $ | 416.1 |
Schedule of Cash Flow, Supplemental Disclosures | A summary income taxes paid (net of refunds) for the year ended February 28, 2026 is as follows:
(in millions) |
U.S. federal | $ | 78.1
U.S. state and local (1) | 16.4
Foreign |
Mexico | 66.7
Other | 12.4
Total foreign | 79.1
Total | $ | 173.6
(1)No single U.S. state or local jurisdiction accounts for more than 5% of total income taxes paid.
Significant components of deferred tax assets (liabilities) | Significant components of deferred tax assets (liabilities) consist of the following:
| February 28, 2026 |  | February 28, 2025
(in millions) |  |  |
Deferred tax assets |  |  |
Intangible assets | $ | 1,540.2 |  |  | $ | 1,716.1 |
Loss carryforwards | 676.9 |  |  | 619.3 |
Interest limitation | 432.4 |  |  | 121.7 |
Lease liabilities | 104.0 |  |  | 102.3 |
Investments in unconsolidated investees | 635.0 |  |  | 652.2 |
Other accruals | 286.3 |  |  | 212.2 |
Gross deferred tax assets | 3,674.8 |  |  | 3,423.8 |
Valuation allowances | (1,860.8) |  |  | (1,170.0) |
Deferred tax assets, net | 1,814.0 |  |  | 2,253.8 |
Deferred tax liabilities |  |  |
Intangible assets | (337.5) |  |  | (264.9) |
Property, plant, and equipment | (122.7) |  |  | (122.7) |
Right-of-use assets | (92.6) |  |  | (88.3) |
Derivative instruments | (43.3) |  |  | (6.9) |
Other accruals | (51.5) |  |  | (58.3) |
Total deferred tax liabilities | (647.6) |  |  | (541.1) |
Deferred tax assets (liabilities), net | $ | 1,166.4 |  |  | $ | 1,712.7 |

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