Constellation Brands, Inc. Annual report pursuant to Section 13 and 15(d)

Annual report pursuant to Section 13 and 15(d)

Fair Value of Financial Instruments (Tables)

Fair Value of Financial Instruments (Tables)

12 Months Ended

Feb. 29, 2012

Fair Value of Financial Instruments [Abstract]

Carrying amount and estimated fair value of financial instruments


	February 29, 2012				February 28, 2011
	Carrying Amount		Fair Value		Carrying Amount		Fair Value
(in millions)
Assets:
Cash and cash investments	$	85.8	$	85.8	$	9.2	$	9.2
Accounts receivable	$	436.0	$	436.0	$	416.2	$	416.2
AFS debt securities	$	28.5	$	28.5	$	40.8	$	40.8
Foreign currency contracts	$	13.2	$	13.2	$	17.0	$	17.0
Interest rate swap contracts	$	—	$	—	$	1.7	$	1.7
Notes receivable	$	1.6	$	1.6	$	6.0	$	6.0

Liabilities:
Notes payable to banks	$	377.9	$	377.6	$	83.7	$	83.8
Accounts payable	$	130.5	$	130.5	$	129.2	$	129.2
Long-term debt, including current portion	$	2,751.6	$	3,007.9	$	3,152.6	$	3,298.2
Foreign currency contracts	$	6.4	$	6.4	$	5.3	$	5.3
Interest rate swap contracts	$	45.7	$	45.7	$	6.1	$	6.1

Financial assets and liabilities measured at fair value on a recurring basis


	Quoted Prices in Active Markets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)		Total
(in millions)
February 29, 2012
Assets:
AFS debt securities	$	—	$	—	$	28.5	$	28.5
Foreign currency contracts	$	—	$	13.2	$	—	$	13.2
Liabilities:
Foreign currency contracts	$	—	$	6.4	$	—	$	6.4
Interest rate swap contracts	$	—	$	45.7	$	—	$	45.7
February 28, 2011
Assets:
AFS debt securities	$	—	$	—	$	40.8	$	40.8
Foreign currency contracts	$	—	$	17.0	$	—	$	17.0
Interest rate swap contracts	$	—	$	1.7	$	—	$	1.7
Liabilities:
Foreign currency contracts	$	—	$	5.3	$	—	$	5.3
Interest rate swap contracts	$	—	$	6.1	$	—	$	6.1

Reconciliation of changes in fair value of financial instruments measured at fair value on a recurring basis using significant unobservable inputs


	February 29, 2012			February 28, 2011
(in millions)
AFS Debt Securities
Balance as of March 1	$	40.8		$	—
Retained interest in Accolade (see Note 7)		—			39.6
Total net gains:
Included in earnings (interest expense, net)		5.5			0.4
Included in other comprehensive income (net unrealized gains on AFS debt securities)		3.9			0.8

Total net gains		9.4			1.2
Settlements		(21.7	)		—
Transfers in and/or out of Level 3		—			—

Balance as of the last day of February	$	28.5		$	40.8

Assets and liabilities measured at fair value on a nonrecurring basis


	Fair Value Measurements Using
	Quoted Prices in Active Markets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)		Total Losses
(in millions)
For the Year Ended February 29, 2012
Trademarks	$	—	$	—	$	96.0	$	38.1

For the Year Ended February 28, 2011
Long-lived assets held for sale	$	—	$	—	$	4.1	$	5.8
Trademarks		—		—		136.9		23.6

Total	$	—	$	—	$	141.0	$	29.4

For the Year Ended February 28, 2010
Long-lived assets held for sale	$	—	$	—	$	21.9	$	13.4
Trademarks		—		—		162.7		103.2
Investment in equity method investee		—		—		4.2		25.4

Total	$	—	$	—	$	188.8	$	142.0

- Definition

Tabular disclosure of assets and liabilities by class, including [financial] instruments measured at fair value that are classified in stockholders' equity, if any, that are measured at fair value on a nonrecurring basis in periods after initial recognition (for example, impaired assets). The disclosures that may be required or desired include: (a) the fair value measurements recorded during the period and the reasons for the measurements and (b) the level within the fair value hierarchy in which the fair value measurements in their entirety fall, segregating fair value measurements using quoted prices in active markets for identical assets or liabilities (Level 1), significant other observable inputs (Level 2), and significant unobservable inputs (Level 3). Where the quoted price in an active market for the identical liability is not available, the Level 1 input is the quoted price of an identical liability when traded as an asset.

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- Definition

Tabular disclosure of the fair value measurement of assets using significant unobservable inputs (Level 3), a reconciliation of the beginning and ending balances, separately presenting changes during the period attributable to the following: (1) total gains or losses for the period (realized and unrealized), segregating those gains or losses included in earnings (or changes in net assets) and gains or losses recognized in other comprehensive income, and a description of where those gains or losses included in earnings (or changes in net assets) are reported in the statement of income (or activities); (2) purchases, sales, issuances, and settlements (each type disclosed separately); and (3) transfers in and transfers out of Level 3 (for example, transfers due to changes in the observability of significant inputs), by class of asset.

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- Definition

Tabular disclosure of the fair value of financial instruments (as defined), including financial assets and financial liabilities (collectively, as defined), and the measurements of those instruments, assets, and liabilities. Such certain disclosures about the financial instruments, assets, and liabilities include: (1) the fair value of the required items together with their carrying amounts (as appropriate) and (2) the methodology and assumptions used in developing such estimates of fair value.

+ References

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