Constellation Brands, Inc. Quarterly report pursuant to Section 13 or 15(d)

Quarterly report pursuant to Section 13 or 15(d)

Restructuring Charges (Tables)

Restructuring Charges (Tables)

6 Months Ended

Aug. 31, 2012

Restructuring and Related Activities [Abstract]

Details of restructuring liability by plan

Details of this plan for which the Company expects to incur additional costs are presented separately in the following table. Plans for which exit activities were substantially complete prior to March 1, 2012, are reported below under “Other Plans.”



	Fiscal 2012 Initiative			Other Plans			Total
(in millions)
Restructuring liability, February 29, 2012	$	8.0		$	6.8		$	14.8

Restructuring charges:
Employee termination benefit costs	0.4			—			0.4
Contract termination costs	—			—			—
Facility consolidation/relocation costs	—			0.1			0.1
Restructuring charges, May 31, 2012	0.4			0.1			0.5

Employee termination benefit costs	0.2			—			0.2
Contract termination costs	—			—			—
Facility consolidation/relocation costs	—			—			—
Restructuring charges, August 31, 2012	0.2			—			0.2
Total restructuring charges	0.6			0.1			0.7

Cash expenditures	(4.9		)	(2.0		)	(6.9		)

Foreign currency translation and other noncash adjustments	—			(0.1		)	(0.1		)
Restructuring liability, August 31, 2012	$	3.7		$	4.8		$	8.5

Summary of restructuring charges and other costs incurred

The following table presents a summary of restructuring charges and other costs incurred, including a summary of amounts incurred by each of the Company’s reportable segments, in connection with the Company’s restructuring plans noted above.



	Fiscal 2012 Initiative		Other Plans		Total
(in millions)
For the Six Months Ended August 31, 2012
Restructuring charges	$	0.6	$	0.1	$	0.7
Other costs:
Accelerated depreciation (cost of product sold)	—		—		—
Other costs (selling, general and administrative expenses)	5.4		—		5.4
Total other costs	5.4		—		5.4
Total costs	$	6.0	$	0.1	$	6.1

Total Costs by Reportable Segment:
Constellation Wines and Spirits
Restructuring charges	$	1.5	$	0.1	$	1.6
Other costs	2.5		—		2.5
Total Constellation Wines and Spirits	$	4.0	$	0.1	$	4.1



	Fiscal 2012 Initiative			Other Plans		Total
(in millions)
Corporate Operations and Other
Restructuring charges	$	(0.9	)	$	—	$	(0.9	)
Other costs	2.9			—		2.9
Total Corporate Operations and Other	$	2.0		$	—	$	2.0

For the Six Months Ended August 31, 2011
Restructuring charges	$	10.8		$	—	$	10.8
Other costs:
Accelerated depreciation (cost of product sold)	—			0.3		0.3
Other costs (selling, general and administrative expenses)	3.5			0.7		4.2
Total other costs	3.5			1.0		4.5
Total costs	$	14.3		$	1.0	$	15.3

Total Costs by Reportable Segment:
Constellation Wines and Spirits
Restructuring charges	$	5.3		$	—	$	5.3
Other costs	2.5			1.0		3.5
Total Constellation Wines and Spirits	$	7.8		$	1.0	$	8.8

Corporate Operations and Other
Restructuring charges	$	5.5		$	—	$	5.5
Other costs	1.0			—		1.0
Total Corporate Operations and Other	$	6.5		$	—	$	6.5

For the Three Months Ended August 31, 2012
Restructuring charges	$	0.2		$	—	$	0.2
Other costs:
Accelerated depreciation (cost of product sold)	—			—		—
Other costs (selling, general and administrative expenses)	2.7			—		2.7
Total other costs	2.7			—		2.7
Total costs	$	2.9		$	—	$	2.9

Total Costs by Reportable Segment:
Constellation Wines and Spirits
Restructuring charges	$	0.9		$	—	$	0.9
Other costs	0.9			—		0.9
Total Constellation Wines and Spirits	$	1.8		$	—	$	1.8

Corporate Operations and Other
Restructuring charges	$	(0.7	)	$	—	$	(0.7	)
Other costs	1.8			—		1.8
Total Corporate Operations and Other	$	1.1		$	—	$	1.1



	Fiscal 2012 Initiative			Other Plans			Total
(in millions)
For the Three Months Ended August 31, 2011
Restructuring charges	$	(0.2	)	$	(0.1	)	$	(0.3	)
Other costs:
Accelerated depreciation (cost of product sold)	—			0.1			0.1
Other costs (selling, general and administrative expenses)	2.5			0.6			3.1
Total other costs	2.5			0.7			3.2
Total costs	$	2.3		$	0.6		$	2.9

Total Costs by Reportable Segment:
Constellation Wines and Spirits
Restructuring charges	$	(0.2	)	$	(0.1	)	$	(0.3	)
Other costs	2.4			0.7			3.1
Total Constellation Wines and Spirits	$	2.2		$	0.6		$	2.8

Corporate Operations and Other
Restructuring charges	$	—		$	—		$	—
Other costs	0.1			—			0.1
Total Corporate Operations and Other	$	0.1		$	—		$	0.1

Summary of restructuring charges and other costs incurred since inception and total expected costs for each plan

A summary of restructuring charges and other costs incurred since inception for the Company’s significant restructuring plan with current activity, as well as total expected costs for such plan, is presented in the following table.



	Fiscal 2012 Initiative
(in millions)
Costs Incurred to Date
Restructuring charges:
Employee termination benefit costs	$	12.8
Contract termination costs	—
Facility consolidation/relocation costs	—
Total restructuring charges	12.8
Other costs:
Accelerated depreciation (cost of product sold)	—
Other costs (selling, general and administrative expenses)	12.7
Total other costs	12.7
Total costs incurred to date	$	25.5

Total Costs Incurred to Date by Reportable Segment:
Constellation Wines and Spirits
Restructuring charges	$	9.4
Other costs	7.7
Total Constellation Wines and Spirits	$	17.1



	Fiscal 2012 Initiative
(in millions)
Corporate Operations and Other
Restructuring charges	$	3.4
Other costs	5.0
Total Corporate Operations and Other	$	8.4

Total Expected Costs
Restructuring charges:
Employee termination benefit costs	$	13.0
Contract termination costs	0.4
Facility consolidation/relocation costs	—
Total restructuring charges	13.4
Other costs:
Accelerated depreciation (cost of product sold)	—
Other costs (selling, general and administrative expenses)	16.6
Total other costs	16.6
Total expected costs	$	30.0

Total Expected Costs by Reportable Segment:
Constellation Wines and Spirits
Restructuring charges	$	9.8
Other costs	10.0
Total Constellation Wines and Spirits	$	19.8

Corporate Operations and Other
Restructuring charges	$	3.6
Other costs	6.6
Total Corporate Operations and Other	$	10.2

- Definition

Tabular disclosure of restructuring and related costs by type of restructuring including the description of the restructuring costs, such as the expected cost; the costs incurred during the period; the cumulative costs incurred as of the balance sheet date; the income statement caption within which the restructuring charges recognized for the period are included; and changes to an entity's restructuring reserve that occurred during the period associated with the exit from or disposal of business activities or restructurings for each major type of cost.

+ References + Details

- Definition

Tabular disclosure of an entity's restructuring reserve that occurred during the period associated with the exit from or disposal of business activities or restructurings for each major type of cost. This element may also include a description of any reversal and other adjustment made during the period to the amount of an accrued liability for restructuring activities. This element may be used to encapsulate the roll forward presentations of an entity's restructuring reserve by type of cost and in total, and explanation of changes that occurred in the period.

+ References + Details