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

Quarterly report pursuant to Section 13 or 15(d)

Inventories

Inventories

9 Months Ended

Nov. 30, 2019

Inventories are stated at the lower of cost (primarily computed in accordance with the first-in, first-out method) or net realizable value. Elements of cost include materials, labor, and overhead and consist of the following:



	November 30, 2019 ⁽¹⁾		February 28, 2019
(in millions)
Raw materials and supplies	$	131.7	$	182.6
In-process inventories	832.5		1,480.5
Finished case goods	394.6		467.3
	$	1,358.8	$	2,130.4


⁽¹⁾	The inventory balance at November 30, 2019, excludes amounts reclassified to assets held for sale (see Note 4).

Related party transactions and arrangements

We have an equally-owned glass production plant joint venture with Owens-Illinois. We have entered into various contractual arrangements with affiliates of Owens-Illinois primarily for the purchase of glass bottles used largely in our imported and craft beer portfolios. Amounts purchased under these arrangements were $155.2 million and $172.4 million for the nine months ended November 30, 2019, and November 30, 2018, respectively, and $28.8 million and $48.7 million for the three months ended November 30, 2019, and November 30, 2018, respectively.