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

Quarterly report pursuant to Section 13 or 15(d)

Derivative Instruments (Tables)

Derivative Instruments (Tables)

3 Months Ended

May 31, 2021

Derivative Instruments and Hedging Activities Disclosure [Abstract]

Aggregate notional value of outstanding derivative instruments

The aggregate notional value of outstanding derivative instruments is as follows:


	May 31, 2021		February 28, 2021
(in millions)
Derivative instruments designated as hedging instruments
Foreign currency contracts	$	1,434.5	$	1,558.0




Derivative instruments not designated as hedging instruments
Foreign currency contracts	$	457.3	$	704.7
Commodity derivative contracts	$	212.2	$	221.6

Fair value and location of derivative instruments on our balance sheets

The estimated fair value and location of our derivative instruments on our balance sheets are as follows (see Note 5):


Assets					Liabilities
	May 31, 2021		February 28, 2021			May 31, 2021		February 28, 2021
(in millions)
Derivative instruments designated as hedging instruments
Foreign currency contracts:
Prepaid expenses and other	$	47.9	$	32.0	Other accrued expenses and liabilities	$	3.2	$	3.5
Other assets	$	44.9	$	41.3	Deferred income taxes and other liabilities	$	2.7	$	2.7









Derivative instruments not designated as hedging instruments
Foreign currency contracts:
Prepaid expenses and other	$	1.8	$	3.3	Other accrued expenses and liabilities	$	1.9	$	3.5
Commodity derivative contracts:
Prepaid expenses and other	$	24.7	$	13.4	Other accrued expenses and liabilities	$	1.2	$	3.9
Other assets	$	14.9	$	7.8	Deferred income taxes and other liabilities	$	0.4	$	1.4

Effect of derivative instruments on our results of operations and OCI

The principal effect of our derivative instruments designated in cash flow hedging relationships on our results of operations, as well as OCI, net of income tax effect, is as follows:


Derivative Instruments in Designated Cash Flow Hedging Relationships	Net Gain (Loss) Recognized in OCI		Location of Net Gain (Loss) Reclassified from AOCI to Income (Loss)	Net Gain (Loss) Reclassified from AOCI to Income (Loss)
(in millions)
For the Three Months Ended May 31, 2021
Foreign currency contracts	$	19.3	Sales	$	(0.2)
			Cost of product sold	9.0


Treasury lock contracts	—		Interest expense	(0.6)
	$	19.3		$	8.2

For the Three Months Ended May 31, 2020
Foreign currency contracts	$	(193.4)	Sales	$	0.4
			Cost of product sold	(8.5)
Interest rate swap contracts	(0.3)		Interest expense	(0.4)
Treasury lock contracts	(16.1)		Interest expense	—
	$	(209.8)		$	(8.5)

The effect of our undesignated derivative instruments on our results of operations is as follows:


Derivative Instruments Not Designated as Hedging Instruments	Location of Net Gain (Loss) Recognized in Income (Loss)	Net Gain (Loss) Recognized in Income (Loss)
(in millions)
For the Three Months Ended May 31, 2021
Commodity derivative contracts	Cost of product sold	$	24.1
Foreign currency contracts	Selling, general, and administrative expenses	(2.2)

		$	21.9

For the Three Months Ended May 31, 2020
Commodity derivative contracts	Cost of product sold	$	(26.8)
Foreign currency contracts	Selling, general, and administrative expenses	(25.9)

		$	(52.7)