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

Business Segment Information (Tables)

12 Months Ended

Feb. 29, 2024

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


	For the Years Ended
	February 29, 2024		February 28, 2023		February 28, 2022
(in millions)
Cost of product sold
Net gain (loss) on undesignated commodity derivative contracts	$	(44.2)	$	(15.0)	$	109.9
Flow through of inventory step-up	(3.6)		(4.5)		(0.1)
Settlements of undesignated commodity derivative contracts	15.0		(76.7)		(35.9)
Strategic business development costs	—		(1.2)		(2.6)
Net flow through of reserved inventory	—		1.2		12.1
Recovery of (loss on) inventory write-down	—		0.2		(1.0)



Comparable Adjustments, Cost of product sold	(32.8)		(96.0)		82.4


	For the Years Ended
	February 29, 2024		February 28, 2023		February 28, 2022
(in millions)
Selling, general, and administrative expenses
Restructuring and other strategic business development costs	(46.3)		(9.9)		0.6
Transition services agreements activity	(24.9)		(20.5)		(19.2)
Gain (loss) on sale of business	(15.1)		15.0		1.7
Transaction, integration, and other acquisition-related costs	(0.6)		(1.4)		(1.4)
Insurance recoveries	55.1		5.2		—
Costs associated with the Reclassification	0.2		(37.8)		—
Impairment of assets	—		(66.5)		—







Other gains (losses) (1)	(11.4)		18.1		(2.3)
Comparable Adjustments, Selling, general, and administrative expenses	(43.0)		(97.8)		(20.6)

Impairment of brewery construction in progress	—		—		(665.9)

Comparable Adjustments, Operating income (loss)	$	(75.8)	$	(193.8)	$	(604.1)


(1)	Primarily includes the following:
		For the Years Ended
		February 29, 2024		February 28, 2023		February 28, 2022
	(in millions)
	Net loss from changes in the indemnification of liabilities associated with prior period divestitures	$	(12.7)	$	—	$	—
	Decreases (increases) in estimated fair values of contingent liabilities associated with prior period acquisitions	$	2.0	$	12.9	$	(9.6)
	Gain from remeasurement of previously held equity method investments	$	—	$	5.2	$	13.5

	Property tax settlement	$	—	$	—	$	10.4
	Adjustment to understated excise tax accruals primarily related to a prior period acquisition	$	—	$	—	$	(13.3)

Segment information is as follows:


	For the Years Ended
	February 29, 2024		February 28, 2023		February 28, 2022
(in millions)
Beer
Net sales	$	8,162.6	$	7,465.0	$	6,751.6
Segment operating income (loss)	$	3,094.4	$	2,861.5	$	2,703.3


Capital expenditures	$	947.9	$	813.9	$	849.5
Depreciation and amortization	$	323.9	$	285.4	$	248.7

Wine and Spirits
Net sales:
Wine	$	1,552.1	$	1,722.7	$	1,819.3
Spirits	247.1		264.9		249.8
Net sales	$	1,799.2	$	1,987.6	$	2,069.1


	For the Years Ended
	February 29, 2024		February 28, 2023		February 28, 2022
(in millions)
Segment operating income (loss)	$	398.7	$	453.1	$	470.7
Income (loss) from unconsolidated investments	$	38.7	$	41.6	$	34.4

Equity method investments	$	100.8	$	95.4	$	97.2

Capital expenditures	$	185.6	$	151.8	$	154.7
Depreciation and amortization	$	88.8	$	83.2	$	80.7

Corporate Operations and Other

Segment operating income (loss)	$	(247.6)	$	(277.9)	$	(238.2)
Income (loss) from unconsolidated investments	$	(72.5)	$	(170.3)	$	(181.7)

Equity method investments	$	69.8	$	567.9	$	2,591.5

Capital expenditures	$	135.6	$	69.7	$	22.6
Depreciation and amortization	$	16.5	$	18.4	$	13.0

Comparable Adjustments

Operating income (loss)	$	(75.8)	$	(193.8)	$	(604.1)
Income (loss) from unconsolidated investments	$	(478.0)	$	(1,907.7)	$	(1,488.2)


Consolidated
Net sales	$	9,961.8	$	9,452.6	$	8,820.7
Operating income (loss)	$	3,169.7	$	2,842.9	$	2,331.7
Income (loss) from unconsolidated investments (1)	$	(511.8)	$	(2,036.4)	$	(1,635.5)

Equity method investments	$	170.6	$	663.3	$	2,688.7

Capital expenditures	$	1,269.1	$	1,035.4	$	1,026.8
Depreciation and amortization	$	429.2	$	387.0	$	342.4


(1)	Income (loss) from unconsolidated investments consists of:
		For the Years Ended
		February 29, 2024		February 28, 2023		February 28, 2022
	(in millions)
	Impairment of equity method investments	$	(136.1)	$	(1,060.3)	$	—
	Unrealized net gain (loss) on securities measured at fair value	(85.4)		(45.9)		(1,644.7)
	Equity in earnings (losses) from Canopy and related activities	(321.3)		(949.3)		(73.6)
	Equity in earnings (losses) from other equity method investees and related activities	30.7		19.1		31.8
	Net gain (loss) on sale of unconsolidated investment	0.3		—		51.0

		$	(511.8)	$	(2,036.4)	$	(1,635.5)

Geographic data is as follows:


	For the Years Ended
	February 29, 2024		February 28, 2023		February 28, 2022
(in millions)
Net sales
U.S.	$	9,748.1	$	9,194.5	$	8,585.8
Non-U.S. (primarily Canada and New Zealand)	213.7		258.1		234.9
	$	9,961.8	$	9,452.6	$	8,820.7