Exhibit 12 CONSTELLATION BRANDS, INC. AND SUBSIDIARIES STATEMENT OF COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES AND EARNINGS TO COMBINED FIXED CHARGES AND PREFERRED STOCK DIVIDENDS (in millions of dollars)
For the Three Months Ended For the Fiscal For the Fiscal Years Ended For the Fiscal May 31, Year Ended February 28, Year Ended 2004 2003 February 29, 2004 2003 2002 2001 February 29, 2000 ---- ---- ----------------- ---- ---- ---- ----------------- Earnings: (a) Income before provision for income taxes $ 80.2 $ 61.2 $ 344.4 $ 334.9 $ 227.4 $ 162.2 $ 129.0 Add fixed charges 33.9 46.8 169.6 112.9 123.0 116.2 114.0 Earnings, as adjusted $ 114.1 $ 108.0 $ 514.0 $ 447.8 $ 350.4 $ 278.4 $ 243.0 Fixed Charges: Interest on debt and capitalized leases $ 31.0 $ 40.6 $ 150.3 $ 107.0 $ 116.5 $ 111.0 $ 110.0 Amortization of direct financing costs 2.2 5.5 16.1 3.7 4.1 3.1 2.2 Amortization of discount on debt -- -- 0.1 0.1 0.5 0.5 0.4 Interest element of rentals 0.7 0.7 3.1 2.1 1.9 1.6 1.4 Total fixed charges 33.9 46.8 169.6 112.9 123.0 116.2 114.0 Preferred stock dividends, adjusted to a pretax equivalent basis 3.9 -- 9.0 -- -- -- -- Combined fixed charges and preferred stock dividends $ 37.8 $ 46.8 $ 178.6 $ 112.9 $ 123.0 $ 116.2 $ 114.0 Ratio of Earnings to Fixed Charges 3.4x 2.3x 3.0x 4.0x 2.8x 2.4x 2.1x Ratio of Earnings to Combined Fixed Charges and Preferred Stock Dividend 3.0x 2.3x 2.9x 4.0x 2.8x 2.4x 2.1x (a) For the purpose of calculating the ratio of earnings to fixed charges, "earnings" represent income before provision for income taxes plus fixed charges. "Fixed charges" consist of interest expensed and capitalized, amortization of debt issuance costs, amortization of discount on debt, and the portion of rental expense which management believes is representative of the interest component of lease expense. "Preferred stock dividends" consist of income before taxes that is required to pay the dividends on our outstanding Series A mandatory convertible preferred stock.