Commitments and Contingencies

12 Months Ended

Feb. 28, 2026

Commitments and Contingencies Disclosure [Abstract]

Purchase commitments and contingencies

We have entered into various long-term contracts in the normal course of business. As of February 28, 2026, the estimated aggregate minimum purchase commitments under these contracts through the date of the last contractual commitment are as follows:


	Type	Commitment Date	Amount
(in millions)
Raw materials and supplies	Packaging, corn, malt, and grapes	December 2037	$	4,340.3

Contract services	Transportation, marketing, IT, warehousing and bottling, energy contract services, and consumer and market insights	January 2032	574.6
Capital expenditures (1)	Property, plant, and equipment and contractor and manufacturing services	February 2029	70.2
In-process and finished goods inventories	Bulk wine and spirits and related contracts	December 2028	21.9

			$	5,007.0

(1)Consists of purchase commitments entered into primarily in connection with the Brewery Projects.

Indemnification liabilities

In connection with prior divestitures, we have indemnified respective parties against certain liabilities that may arise subsequent to the divestiture. As of February 28, 2026, and February 28, 2025, these liabilities consist primarily of indemnifications related to certain income tax matters and lease contracts. As of February 28, 2026, and February 28, 2025, the carrying amount of our indemnification liabilities was $12.2 million and $18.4 million, respectively, and are included in other accrued expenses and liabilities and deferred income taxes and other liabilities. 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 business, liquidity, financial condition, and/or results of operations.

Supply chain finance program

We have an agreement with a financial institution for payment services and facilitate a voluntary supply chain finance program through this participating financial institution. The program is available to certain of our suppliers allowing them the option to manage their cash flow. We are not a party to the agreements between the participating financial institution and the suppliers in connection with the program. Our rights and obligations to our suppliers, including amounts due and scheduled payment terms, are not impacted. We account for payments made under the supply

chain finance program the same as our other accounts payable, as a reduction to our cash flow from operating activities.

The changes in outstanding obligations under our supply chain finance program are as follows:


(in millions)
Balance, February 29, 2024	$	11.5
Additions	190.5
Settlements (1)	(162.6)
Balance, February 28, 2025 (2)	39.4
Additions	266.0
Settlements (1)	(254.7)
Balance, February 28, 2026 (2)	$	50.7

(1)Reflects amounts settled through the supply chain finance program and paid to the financial institution.

(2)Reflects amount payable to the participating financial institution for suppliers who voluntarily participated in the supply chain finance program and was included in accounts payable within our consolidated balance sheets.

Legal matters

In the ordinary course of our business, we are subject to lawsuits, arbitration, claims, and other legal proceedings in connection with our business. Some of the legal actions include claims for substantial or unspecified compensatory and/or punitive damages and/or injunctive relief. A substantial adverse judgment or other unfavorable resolution of these matters could have a material adverse effect on our financial condition, results of operations, or cash flows. Management believes that we have adequate legal defenses with respect to the legal proceedings to which it is a defendant or respondent and that the outcome of these pending proceedings is not likely to have a material adverse effect on our financial condition, results of operations, and/or cash flows. However, we are unable to predict the outcome of these matters.

Regulatory matters

We are in discussions with various governmental agencies concerning matters raised during regulatory examinations or otherwise subject to such agencies’ inquiry. These matters could result in censures, fines, or other sanctions. Management believes the outcome of any pending regulatory matters will not have a material adverse effect on our financial condition, results of operations, and/or cash flows. However, we are unable to predict the outcome of these matters.

Insurance recoveries

During the year ended February 29, 2024, we recorded $56.3 million of business interruption and other recoveries from our insurance carriers. These recoveries related to an outage at our Nava Brewery due to severe winter weather events in early 2021. These proceeds are included in our consolidated results of operations for the year ended February 29, 2024.