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

Quarterly report pursuant to Section 13 or 15(d)

Net Income (Loss) Per Common Share Attributable to CBI

Net Income (Loss) Per Common Share Attributable to CBI

3 Months Ended

May 31, 2023

NET INCOME (LOSS) PER COMMON SHARE ATTRIBUTABLE TO CBI

NET INCOME (LOSS) PER COMMON SHARE ATTRIBUTABLE TO CBIFor the three months ended May 31, 2023, net income (loss) per common share – basic for Class A Stock has been computed based on the weighted average shares of common stock outstanding during the period. Net income (loss) per common share – diluted for Class A Stock reflects the weighted average shares of common stock

plus the effect of dilutive securities outstanding during the period using the treasury stock method. The effect of dilutive securities includes the impact of outstanding stock-based awards. The dilutive computation does not assume conversion, exercise, or contingent issuance of securities that would have an anti-dilutive effect on the net income (loss) per common share attributable to CBI. The computation of basic and diluted net income (loss) per common share for Class A Stock are as follows:


	For the Three Months Ended May 31, 2023
(in millions, except per share data)
Net income (loss) attributable to CBI	$	135.9

Weighted average common shares outstanding – basic	183.270
Stock-based awards, primarily stock options	0.593
Weighted average common shares outstanding – diluted	183.863

Net income (loss) per common share attributable to CBI – basic	$	0.74
Net income (loss) per common share attributable to CBI – diluted	$	0.74

For the three months ended May 31, 2022, net income (loss) per common share – diluted for Class A Stock has been computed using the if-converted method and assumes the exercise of stock options using the treasury stock method and the conversion of Class B Stock as this method is more dilutive than the two-class method. For the three months ended May 31, 2022, net income (loss) per common share – diluted for Class B Stock has been computed using the two-class method and does not assume conversion of Class B Stock into shares of Class A Stock. The computation of basic and diluted net income (loss) per common share are as follows:


	For the Three Months Ended May 31, 2022
	Class A Stock		Class B Stock
(in millions, except per share data)
Net income (loss) attributable to CBI allocated – basic	$	345.6	$	43.9
Conversion of Class B common shares into Class A common shares	43.9		—
Effect of stock-based awards on allocated net income (loss)	—		(0.1)
Net income (loss) attributable to CBI allocated – diluted	$	389.5	$	43.8

Weighted average common shares outstanding – basic	165.335		23.206
Conversion of Class B common shares into Class A common shares	23.206		—
Stock-based awards, primarily stock options	0.792		—
Weighted average common shares outstanding – diluted	189.333		23.206

Net income (loss) per common share attributable to CBI – basic	$	2.09	$	1.89
Net income (loss) per common share attributable to CBI – diluted	$	2.06	$	1.89