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

Quarterly report pursuant to Section 13 or 15(d)

Leases (Tables)

Leases (Tables)

3 Months Ended

May 31, 2019

Summary of lease right-of-use assets and liabilities

A summary of lease right-of-use assets and liabilities are as follows:



	Balance Sheet Classification	May 31, 2019
(in millions)
Assets
Operating lease	Other assets	$	575.3
Finance lease	Property, plant, and equipment	30.3
Total right-of-use assets		$	605.6

Liabilities
Current:
Operating lease	Other accrued expenses and liabilities	$	75.6
Finance lease	Current maturities of long-term debt	11.8
Non-Current:
Operating lease	Deferred income taxes and other liabilities	527.0
Finance lease	Long-term debt, less current maturities	13.0
Total lease liabilities		$	627.4

Lease cost components

The components of total lease cost are as follows:



	For the Three Months Ended May 31, 2019
(in millions)
Operating lease cost	$	23.4
Finance lease cost:
Amortization of right-of-use assets	2.8
Interest on lease liabilities	0.2
Short-term lease cost	3.2
Variable lease cost	42.6
Total lease cost	$	72.2

Operating lease maturities

As of May 31, 2019, minimum payments due for lease liabilities for the remaining nine months of fiscal 2020 and for each of the five succeeding fiscal years and thereafter are as follows:



	Operating Leases			Finance Leases
(in millions)
2020	$	74.5		$	9.6
2021	93.7			9.4
2022	81.0			5.1
2023	69.4			1.6
2024	63.0			—
2025	53.2			—
Thereafter	310.5			—
Total lease payments	745.3			25.7
Less: Interest	(142.7		)	(0.9		)
Total lease liabilities	$	602.6		$	24.8

Finance lease maturities

As of May 31, 2019, minimum payments due for lease liabilities for the remaining nine months of fiscal 2020 and for each of the five succeeding fiscal years and thereafter are as follows:



	Operating Leases			Finance Leases
(in millions)
2020	$	74.5		$	9.6
2021	93.7			9.4
2022	81.0			5.1
2023	69.4			1.6
2024	63.0			—
2025	53.2			—
Thereafter	310.5			—
Total lease payments	745.3			25.7
Less: Interest	(142.7		)	(0.9		)
Total lease liabilities	$	602.6		$	24.8

Future payments of noncancelable operating lease

As of February 28, 2019, future payments were expected to be as follows:



	Operating Leases
(in millions)
2020	$	59.0
2021	58.2
2022	51.1
2023	47.9
2024	41.2
Thereafter	302.1
Total lease payments	$	559.5

⁽¹⁾ For leases with terms in excess of 12 months at inception.

Supplemental cash flow information



Supplemental information	For the Three Months Ended May 31, 2019
(in millions)
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows from operating leases	$	22.5
Operating cash flows from finance leases	$	0.2
Financing cash flows from finance leases	$	3.6

Right-of-use assets obtained in exchange for new lease liabilities:
Operating leases	$	8.0
Finance leases	$	—

Weighted-average remaining lease term:
Operating leases	12.0 years
Finance leases	3.4 years

Weighted-average discount rate:
Operating leases	3.7		%
Finance leases	2.7		%