LEASES
General
We primarily lease certain vineyards, office and production facilities, warehouses, production equipment, and vehicles. We have concluded that certain grape purchasing arrangements associated with the purchase of grape production yielded from a specified block of a vineyard and certain third-party logistics arrangements contain a lease.

Balance sheet location
A summary of lease right-of-use assets and liabilities are as follows:
Balance Sheet ClassificationFebruary 28,
2026
February 28,
2025
(in millions)
Assets
Operating leaseOther assets$582.4$545.7
Finance lease
Property, plant, and equipment, net
10.518.2
Total right-of-use assets$592.9$563.9
Liabilities
Current:
Operating leaseOther accrued expenses and liabilities$101.9$76.7
Finance leaseCurrent maturities of long-term debt4.14.1
Non-current:
Operating leaseDeferred income taxes and other liabilities532.2539.1
Finance leaseLong-term debt, less current maturities7.14.6
Total lease liabilities$645.3$624.5
Lease cost
The components of total lease cost are as follows:
For the Years Ended

February 28,
2026
February 28,
2025
February 29,
2024
(in millions)
Operating lease cost$126.8 $112.6 $98.2 
Finance lease cost:
Amortization of right-of-use assets5.4 7.2 9.4 
Interest on lease liabilities0.7 1.0 1.4 
Short-term lease cost9.2 11.5 10.5 
Variable lease cost47.0 135.2 182.1 
Total lease cost$189.1 $267.5 $301.6 

Lease maturities
As of February 28, 2026, minimum payments due for lease liabilities for each of the five succeeding fiscal years and thereafter are as follows:
Operating LeasesFinance Leases
(in millions)
Fiscal 2027$128.6 $5.0 
Fiscal 2028109.4 3.0 
Fiscal 202985.5 1.6 
Fiscal 203077.6 1.5 
Fiscal 203167.6 1.5 
Thereafter317.4 0.7 
Total lease payments786.1 13.3 
Less: Interest(152.0)(2.1)
Total lease liabilities$634.1 $11.2 

Related party transaction
We have a long-term lease for office space with an affiliate of a director.

Supplemental information
For the Years Ended
February 28,
2026
February 28,
2025
February 29,
2024
(in millions)
Cash paid for amounts included in the measurement of lease liabilities
Operating cash flows from operating leases$132.3$114.8$99.5
Operating cash flows from finance leases$0.7$1.0$1.4
Financing cash flows from finance leases$4.4$7.0$9.7
Right-of-use assets obtained in exchange for new lease liabilities
Operating leases$188.3$63.0$268.5
Finance leases$5.7$$
For the Years Ended
February 28,
2026
February 28,
2025
February 29,
2024
(in millions)
Weighted-average remaining lease term (1)
Operating leases10.2 years11.6 years10.7 years
Finance leases4.0 years2.3 years2.8 years
Weighted-average discount rate
Operating leases4.5%4.2%4.3%
Finance leases9.5%8.8%7.5%
(1)Our leases have varying terms with remaining lease terms of up to approximately 29 years. Certain of our lease arrangements provide us with the option to extend or to terminate the lease early.

Historical Timeline

Fiscal YearFiled
2026Apr 22, 2026Showing above
2025Apr 23, 2025
2024Apr 23, 2024
2023Apr 20, 2023
2022Apr 21, 2022
2021Apr 20, 2021
2020Apr 21, 2020

About Leases Disclosures

Lease disclosures under ASC 842 provide a comprehensive view of a company's leased asset portfolio, including the split between operating and finance leases, discount rates used to present-value future payments, and the maturity schedule of lease obligations. This section reveals a significant source of off-balance-sheet commitments that were largely hidden before the current standard.

Key signals: the weighted-average discount rate affects the size of recorded lease liabilities — a higher rate reduces the reported obligation, so compare the chosen rate against the company's incremental borrowing rate. The operating versus finance lease mix affects both EBITDA and operating income presentation. Watch the maturity table for concentration risk: large payment cliffs in specific years may create cash flow pressure. Variable lease payments excluded from the liability measurement represent real obligations that do not appear on the balance sheet. Compare total lease costs against prior-year operating lease expense to assess the true economic burden.