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

Business Segment Information (Tables)

3 Months Ended

May 31, 2023

Comparable Adjustments that impacted comparability in our segment operating income (loss) for each period are as follows:


	For the Three Months Ended May 31,
	2023		2022
(in millions)
Cost of product sold
Net gain (loss) on undesignated commodity derivative contracts	$	(34.7)	$	48.5
Flow through of inventory step-up	(0.7)		(1.0)
Settlements of undesignated commodity derivative contracts	0.6		(23.3)


Recovery of (loss on) inventory write-down	—		0.2



Comparable Adjustments, Cost of product sold	(34.8)		24.4

Selling, general, and administrative expenses

Restructuring and other strategic business development costs	(14.9)		(1.4)
Transition services agreements activity	(5.7)		(3.4)
Transaction, integration, and other acquisition-related costs	(0.3)		(0.2)





Other gains (losses) (1)	(6.8)		4.5
Comparable Adjustments, Selling, general, and administrative expenses	(27.7)		(0.5)





Comparable Adjustments, Operating income (loss)	$	(62.5)	$	23.9


(1)	Primarily includes the following:
		For the Three Months Ended May 31,
		2023		2022
	(in millions)
	Gain (loss) on sale of business	$	(7.0)	$	—
	Gain from remeasurement of previously held equity method investments	$	—	$	5.2

Segment information is as follows:


	For the Three Months Ended May 31,
	2023		2022
(in millions)
Beer
Net sales	$	2,098.6	$	1,898.2
Segment operating income (loss)	$	797.8	$	762.8


Capital expenditures	$	205.6	$	161.8
Depreciation and amortization	$	78.8	$	68.2


	For the Three Months Ended May 31,
	2023		2022
(in millions)
Wine and Spirits
Net sales:
Wine	$	361.0	$	404.1
Spirits	55.3		60.9
Net sales	$	416.3	$	465.0
Segment operating income (loss)	$	79.3	$	91.0
Income (loss) from unconsolidated investments	$	2.3	$	1.5

Equity method investments	$	96.8	$	98.0

Capital expenditures	$	38.6	$	29.8
Depreciation and amortization	$	22.5	$	22.3

Corporate Operations and Other
Segment operating income (loss)	$	(49.9)	$	(61.3)
Income (loss) from unconsolidated investments	$	(33.3)	$	(54.0)

Equity method investments	$	194.5	$	2,436.0

Capital expenditures	$	32.8	$	5.0
Depreciation and amortization	$	4.4	$	3.2



















Comparable Adjustments

Operating income (loss)	$	(62.5)	$	23.9
Income (loss) from unconsolidated investments	$	(384.4)	$	(135.4)


Consolidated
Net sales	$	2,514.9	$	2,363.2
Operating income (loss)	$	764.7	$	816.4
Income (loss) from unconsolidated investments (1)	$	(415.4)	$	(187.9)

Equity method investments	$	291.3	$	2,534.0

Capital expenditures	$	277.0	$	196.6
Depreciation and amortization	$	105.7	$	93.7


(1)	Income (loss) from unconsolidated investments consists of:
			For the Three Months Ended May 31,
			2023		2022
		(in millions)
		Impairment of Canopy Equity Method Investment	$	(123.5)	$	—
		Unrealized net gain (loss) on securities measured at fair value	(71.8)		(22.4)
		Equity in earnings (losses) from Canopy and related activities	(219.8)		(165.0)
		Equity in earnings (losses) from other equity method investees and related activities	(0.3)		(0.5)


			$	(415.4)	$	(187.9)