10-Q 1 stz-20240531.htm 10-Q stz-20240531
0000016918FALSE2025Q1February 28xbrli:sharesiso4217:USDiso4217:USDxbrli:sharesiso4217:CADxbrli:purestz:divisionstz:segment00000169182024-03-012024-05-310000016918us-gaap:CommonClassAMember2024-06-280000016918us-gaap:ConvertibleCommonStockMember2024-06-2800000169182024-05-3100000169182024-02-290000016918us-gaap:CommonClassAMember2024-05-310000016918us-gaap:CommonClassAMember2024-02-2900000169182023-03-012023-05-310000016918us-gaap:CommonClassAMember2024-03-012024-05-310000016918us-gaap:CommonClassAMember2023-03-012023-05-310000016918us-gaap:CommonStockMemberus-gaap:CommonClassAMember2024-02-290000016918us-gaap:AdditionalPaidInCapitalMember2024-02-290000016918us-gaap:RetainedEarningsMember2024-02-290000016918us-gaap:AccumulatedOtherComprehensiveIncomeMember2024-02-290000016918us-gaap:TreasuryStockCommonMember2024-02-290000016918us-gaap:NoncontrollingInterestMember2024-02-290000016918us-gaap:RetainedEarningsMember2024-03-012024-05-310000016918us-gaap:NoncontrollingInterestMember2024-03-012024-05-310000016918us-gaap:AccumulatedOtherComprehensiveIncomeMember2024-03-012024-05-310000016918us-gaap:TreasuryStockCommonMember2024-03-012024-05-310000016918us-gaap:AdditionalPaidInCapitalMember2024-03-012024-05-310000016918us-gaap:CommonStockMemberus-gaap:CommonClassAMember2024-05-310000016918us-gaap:AdditionalPaidInCapitalMember2024-05-310000016918us-gaap:RetainedEarningsMember2024-05-310000016918us-gaap:AccumulatedOtherComprehensiveIncomeMember2024-05-310000016918us-gaap:TreasuryStockCommonMember2024-05-310000016918us-gaap:NoncontrollingInterestMember2024-05-310000016918us-gaap:CommonStockMemberus-gaap:CommonClassAMember2023-02-280000016918us-gaap:AdditionalPaidInCapitalMember2023-02-280000016918us-gaap:RetainedEarningsMember2023-02-280000016918us-gaap:AccumulatedOtherComprehensiveIncomeMember2023-02-280000016918us-gaap:TreasuryStockCommonMember2023-02-280000016918us-gaap:NoncontrollingInterestMember2023-02-2800000169182023-02-280000016918us-gaap:RetainedEarningsMember2023-03-012023-05-310000016918us-gaap:NoncontrollingInterestMember2023-03-012023-05-310000016918us-gaap:AccumulatedOtherComprehensiveIncomeMember2023-03-012023-05-310000016918us-gaap:TreasuryStockCommonMember2023-03-012023-05-310000016918us-gaap:AdditionalPaidInCapitalMember2023-03-012023-05-310000016918us-gaap:CommonStockMemberus-gaap:CommonClassAMember2023-05-310000016918us-gaap:AdditionalPaidInCapitalMember2023-05-310000016918us-gaap:RetainedEarningsMember2023-05-310000016918us-gaap:AccumulatedOtherComprehensiveIncomeMember2023-05-310000016918us-gaap:TreasuryStockCommonMember2023-05-310000016918us-gaap:NoncontrollingInterestMember2023-05-3100000169182023-05-310000016918us-gaap:ForeignExchangeContractMemberus-gaap:DesignatedAsHedgingInstrumentMember2024-05-310000016918us-gaap:ForeignExchangeContractMemberus-gaap:DesignatedAsHedgingInstrumentMember2024-02-290000016918us-gaap:ForeignExchangeContractMemberus-gaap:NondesignatedMember2024-05-310000016918us-gaap:ForeignExchangeContractMemberus-gaap:NondesignatedMember2024-02-290000016918us-gaap:CommodityContractMemberus-gaap:NondesignatedMember2024-05-310000016918us-gaap:CommodityContractMemberus-gaap:NondesignatedMember2024-02-290000016918us-gaap:ForeignExchangeContractMemberus-gaap:OtherCurrentAssetsMemberus-gaap:DesignatedAsHedgingInstrumentMember2024-05-310000016918us-gaap:ForeignExchangeContractMemberus-gaap:OtherCurrentAssetsMemberus-gaap:DesignatedAsHedgingInstrumentMember2024-02-290000016918us-gaap:ForeignExchangeContractMemberus-gaap:DesignatedAsHedgingInstrumentMemberus-gaap:OtherCurrentLiabilitiesMember2024-05-310000016918us-gaap:ForeignExchangeContractMemberus-gaap:DesignatedAsHedgingInstrumentMemberus-gaap:OtherCurrentLiabilitiesMember2024-02-290000016918us-gaap:ForeignExchangeContractMemberus-gaap:OtherNoncurrentAssetsMemberus-gaap:DesignatedAsHedgingInstrumentMember2024-05-310000016918us-gaap:ForeignExchangeContractMemberus-gaap:OtherNoncurrentAssetsMemberus-gaap:DesignatedAsHedgingInstrumentMember2024-02-290000016918us-gaap:ForeignExchangeContractMemberus-gaap:OtherNoncurrentLiabilitiesMemberus-gaap:DesignatedAsHedgingInstrumentMember2024-05-310000016918us-gaap:ForeignExchangeContractMemberus-gaap:OtherNoncurrentLiabilitiesMemberus-gaap:DesignatedAsHedgingInstrumentMember2024-02-290000016918us-gaap:ForeignExchangeContractMemberus-gaap:NondesignatedMemberus-gaap:OtherCurrentAssetsMember2024-05-310000016918us-gaap:ForeignExchangeContractMemberus-gaap:NondesignatedMemberus-gaap:OtherCurrentAssetsMember2024-02-290000016918us-gaap:ForeignExchangeContractMemberus-gaap:NondesignatedMemberus-gaap:OtherCurrentLiabilitiesMember2024-05-310000016918us-gaap:ForeignExchangeContractMemberus-gaap:NondesignatedMemberus-gaap:OtherCurrentLiabilitiesMember2024-02-290000016918us-gaap:CommodityContractMemberus-gaap:NondesignatedMemberus-gaap:OtherCurrentAssetsMember2024-05-310000016918us-gaap:CommodityContractMemberus-gaap:NondesignatedMemberus-gaap:OtherCurrentAssetsMember2024-02-290000016918us-gaap:CommodityContractMemberus-gaap:NondesignatedMemberus-gaap:OtherCurrentLiabilitiesMember2024-05-310000016918us-gaap:CommodityContractMemberus-gaap:NondesignatedMemberus-gaap:OtherCurrentLiabilitiesMember2024-02-290000016918us-gaap:CommodityContractMemberus-gaap:OtherNoncurrentAssetsMemberus-gaap:NondesignatedMember2024-05-310000016918us-gaap:CommodityContractMemberus-gaap:OtherNoncurrentAssetsMemberus-gaap:NondesignatedMember2024-02-290000016918us-gaap:CommodityContractMemberus-gaap:OtherNoncurrentLiabilitiesMemberus-gaap:NondesignatedMember2024-05-310000016918us-gaap:CommodityContractMemberus-gaap:OtherNoncurrentLiabilitiesMemberus-gaap:NondesignatedMember2024-02-290000016918us-gaap:ForeignExchangeContractMemberus-gaap:CashFlowHedgingMember2024-03-012024-05-310000016918us-gaap:ForeignExchangeContractMemberus-gaap:SalesMemberus-gaap:CashFlowHedgingMember2024-03-012024-05-310000016918us-gaap:ForeignExchangeContractMemberus-gaap:CashFlowHedgingMemberus-gaap:CostOfSalesMember2024-03-012024-05-310000016918us-gaap:CashFlowHedgingMember2024-03-012024-05-310000016918us-gaap:ForeignExchangeContractMemberus-gaap:CashFlowHedgingMember2023-03-012023-05-310000016918us-gaap:ForeignExchangeContractMemberus-gaap:SalesMemberus-gaap:CashFlowHedgingMember2023-03-012023-05-310000016918us-gaap:ForeignExchangeContractMemberus-gaap:CashFlowHedgingMemberus-gaap:CostOfSalesMember2023-03-012023-05-310000016918stz:PreIssuanceHedgeContractMemberus-gaap:CashFlowHedgingMember2023-03-012023-05-310000016918stz:PreIssuanceHedgeContractMemberus-gaap:InterestExpenseMemberus-gaap:CashFlowHedgingMember2023-03-012023-05-310000016918us-gaap:CashFlowHedgingMember2023-03-012023-05-310000016918us-gaap:CommodityContractMemberus-gaap:CostOfSalesMember2024-03-012024-05-310000016918us-gaap:ForeignExchangeContractMemberus-gaap:SellingGeneralAndAdministrativeExpensesMember2024-03-012024-05-310000016918us-gaap:CommodityContractMemberus-gaap:CostOfSalesMember2023-03-012023-05-310000016918us-gaap:ForeignExchangeContractMemberus-gaap:SellingGeneralAndAdministrativeExpensesMember2023-03-012023-05-310000016918us-gaap:CarryingReportedAmountFairValueDisclosureMember2024-05-310000016918us-gaap:EstimateOfFairValueFairValueDisclosureMember2024-05-310000016918us-gaap:CarryingReportedAmountFairValueDisclosureMember2024-02-290000016918us-gaap:EstimateOfFairValueFairValueDisclosureMember2024-02-290000016918us-gaap:FairValueInputsLevel1Memberus-gaap:FairValueMeasurementsRecurringMemberus-gaap:ForeignExchangeContractMember2024-05-310000016918us-gaap:FairValueMeasurementsRecurringMemberus-gaap:ForeignExchangeContractMemberus-gaap:FairValueInputsLevel2Member2024-05-310000016918us-gaap:FairValueMeasurementsRecurringMemberus-gaap:FairValueInputsLevel3Memberus-gaap:ForeignExchangeContractMember2024-05-310000016918us-gaap:FairValueMeasurementsRecurringMemberus-gaap:ForeignExchangeContractMember2024-05-310000016918us-gaap:FairValueInputsLevel1Memberus-gaap:FairValueMeasurementsRecurringMemberus-gaap:CommodityContractMember2024-05-310000016918us-gaap:FairValueMeasurementsRecurringMemberus-gaap:CommodityContractMemberus-gaap:FairValueInputsLevel2Member2024-05-310000016918us-gaap:FairValueMeasurementsRecurringMemberus-gaap:CommodityContractMemberus-gaap:FairValueInputsLevel3Member2024-05-310000016918us-gaap:FairValueMeasurementsRecurringMemberus-gaap:CommodityContractMember2024-05-310000016918us-gaap:FairValueInputsLevel1Memberus-gaap:FairValueMeasurementsRecurringMemberus-gaap:ForeignExchangeContractMember2024-02-290000016918us-gaap:FairValueMeasurementsRecurringMemberus-gaap:ForeignExchangeContractMemberus-gaap:FairValueInputsLevel2Member2024-02-290000016918us-gaap:FairValueMeasurementsRecurringMemberus-gaap:FairValueInputsLevel3Memberus-gaap:ForeignExchangeContractMember2024-02-290000016918us-gaap:FairValueMeasurementsRecurringMemberus-gaap:ForeignExchangeContractMember2024-02-290000016918us-gaap:FairValueInputsLevel1Memberus-gaap:FairValueMeasurementsRecurringMemberus-gaap:CommodityContractMember2024-02-290000016918us-gaap:FairValueMeasurementsRecurringMemberus-gaap:CommodityContractMemberus-gaap:FairValueInputsLevel2Member2024-02-290000016918us-gaap:FairValueMeasurementsRecurringMemberus-gaap:CommodityContractMemberus-gaap:FairValueInputsLevel3Member2024-02-290000016918us-gaap:FairValueMeasurementsRecurringMemberus-gaap:CommodityContractMember2024-02-290000016918us-gaap:FairValueInputsLevel1Memberus-gaap:FairValueMeasurementsNonrecurringMember2023-05-310000016918us-gaap:FairValueMeasurementsNonrecurringMemberus-gaap:FairValueInputsLevel2Member2023-05-310000016918us-gaap:FairValueMeasurementsNonrecurringMemberus-gaap:FairValueInputsLevel3Member2023-05-310000016918us-gaap:FairValueMeasurementsNonrecurringMember2023-03-012023-05-310000016918stz:CanopyEquityMethodInvestmentMember2023-05-310000016918stz:CanopyEquityMethodInvestmentMember2023-03-012023-05-310000016918stz:BeerMemberus-gaap:OperatingSegmentsMember2023-02-280000016918stz:ConstellationWinesAndSpiritsMemberus-gaap:OperatingSegmentsMember2023-02-280000016918stz:BeerMemberus-gaap:OperatingSegmentsMember2023-03-012024-02-290000016918stz:ConstellationWinesAndSpiritsMemberus-gaap:OperatingSegmentsMember2023-03-012024-02-2900000169182023-03-012024-02-290000016918stz:BeerMemberus-gaap:OperatingSegmentsMember2024-02-290000016918stz:ConstellationWinesAndSpiritsMemberus-gaap:OperatingSegmentsMember2024-02-290000016918stz:BeerMemberus-gaap:OperatingSegmentsMember2024-03-012024-05-310000016918stz:ConstellationWinesAndSpiritsMemberus-gaap:OperatingSegmentsMember2024-03-012024-05-310000016918stz:BeerMemberus-gaap:OperatingSegmentsMember2024-05-310000016918stz:ConstellationWinesAndSpiritsMemberus-gaap:OperatingSegmentsMember2024-05-310000016918us-gaap:SubsequentEventMemberstz:SeaSmokeBusinessAcquisitionMemberstz:ConstellationWinesAndSpiritsMemberus-gaap:OperatingSegmentsMember2024-06-012024-06-300000016918us-gaap:CustomerRelationshipsMember2024-05-310000016918us-gaap:CustomerRelationshipsMember2024-02-290000016918us-gaap:OtherIntangibleAssetsMember2024-05-310000016918us-gaap:OtherIntangibleAssetsMember2024-02-290000016918us-gaap:TrademarksMember2024-05-310000016918us-gaap:TrademarksMember2024-02-290000016918stz:CanopyEquityMethodInvestmentMember2024-05-310000016918stz:CanopyEquityMethodInvestmentMember2024-02-290000016918stz:OtherEquityMethodInvestmentsMember2024-05-310000016918stz:OtherEquityMethodInvestmentsMember2024-02-290000016918stz:CanopyEquityMethodInvestmentMember2024-04-010000016918us-gaap:UnsecuredDebtMemberstz:A2023CanopyPromissoryNoteMember2024-04-012024-04-300000016918us-gaap:UnsecuredDebtMemberstz:A2023CanopyPromissoryNoteMember2023-04-300000016918stz:CanopyMember2024-04-012024-04-300000016918stz:CanopyMember2024-05-310000016918stz:CanopyMember2024-03-012024-05-310000016918us-gaap:CommercialPaperMember2024-05-310000016918us-gaap:CommercialPaperMember2024-02-290000016918us-gaap:UnsecuredDebtMemberstz:UnsecuredSeniorNotesMember2024-05-310000016918us-gaap:UnsecuredDebtMemberstz:UnsecuredSeniorNotesMember2024-02-290000016918us-gaap:RevolvingCreditFacilityMember2024-05-310000016918us-gaap:RevolvingCreditFacilityMemberstz:SecuredOvernightFinancingRateMember2024-05-310000016918us-gaap:FinancialStandbyLetterOfCreditMember2024-05-310000016918us-gaap:RevolvingCreditFacilityMember2024-02-290000016918us-gaap:RevolvingCreditFacilityMemberstz:SecuredOvernightFinancingRateMember2024-02-290000016918us-gaap:FinancialStandbyLetterOfCreditMember2024-02-290000016918us-gaap:CommercialPaperMember2024-03-012024-05-310000016918us-gaap:CommercialPaperMember2023-03-012024-02-290000016918us-gaap:CommonStockMemberus-gaap:ConvertibleCommonStockMember2024-02-290000016918us-gaap:TreasuryStockCommonMemberus-gaap:CommonClassAMember2024-02-290000016918us-gaap:TreasuryStockCommonMemberus-gaap:CommonClassAMember2024-03-012024-05-310000016918us-gaap:CommonStockMemberus-gaap:ConvertibleCommonStockMember2024-03-012024-05-310000016918us-gaap:RestrictedStockUnitsRSUMemberus-gaap:TreasuryStockCommonMemberus-gaap:CommonClassAMember2024-03-012024-05-310000016918us-gaap:TreasuryStockCommonMemberus-gaap:CommonClassAMemberus-gaap:PerformanceSharesMember2024-03-012024-05-310000016918us-gaap:CommonStockMemberus-gaap:ConvertibleCommonStockMember2024-05-310000016918us-gaap:TreasuryStockCommonMemberus-gaap:CommonClassAMember2024-05-310000016918us-gaap:CommonStockMemberus-gaap:ConvertibleCommonStockMember2023-02-280000016918us-gaap:TreasuryStockCommonMemberus-gaap:CommonClassAMember2023-02-280000016918us-gaap:TreasuryStockCommonMemberus-gaap:CommonClassAMember2023-03-012023-05-310000016918us-gaap:CommonStockMemberus-gaap:CommonClassAMember2023-03-012023-05-310000016918us-gaap:CommonStockMemberus-gaap:ConvertibleCommonStockMember2023-03-012023-05-310000016918us-gaap:RestrictedStockUnitsRSUMemberus-gaap:TreasuryStockCommonMemberus-gaap:CommonClassAMember2023-03-012023-05-310000016918us-gaap:TreasuryStockCommonMemberus-gaap:CommonClassAMemberus-gaap:PerformanceSharesMember2023-03-012023-05-310000016918us-gaap:CommonStockMemberus-gaap:ConvertibleCommonStockMember2023-05-310000016918us-gaap:TreasuryStockCommonMemberus-gaap:CommonClassAMember2023-05-310000016918stz:A2021ShareRepurchaseProgramMember2021-01-310000016918stz:A2023ShareRepurchaseAuthorizationMember2023-11-300000016918us-gaap:SubsequentEventMemberstz:A2021ShareRepurchaseProgramMemberus-gaap:CommonClassAMember2024-06-012024-07-030000016918us-gaap:SubsequentEventMemberstz:A2021ShareRepurchaseProgramMemberus-gaap:CommonClassAMember2021-01-012024-07-030000016918us-gaap:SubsequentEventMemberus-gaap:CommonClassAMemberstz:A2023ShareRepurchaseAuthorizationMember2023-11-012024-07-030000016918us-gaap:SubsequentEventMemberus-gaap:CommonClassAMember2024-07-030000016918us-gaap:AccumulatedTranslationAdjustmentMember2024-03-012024-05-310000016918us-gaap:AccumulatedGainLossNetCashFlowHedgeParentMember2024-03-012024-05-310000016918us-gaap:EquityMethodInvestmentsMemberus-gaap:AccumulatedOtherComprehensiveIncomeMember2024-03-012024-05-310000016918us-gaap:AccumulatedTranslationAdjustmentMember2023-03-012023-05-310000016918us-gaap:AccumulatedGainLossNetCashFlowHedgeParentMember2023-03-012023-05-310000016918us-gaap:AccumulatedDefinedBenefitPlansAdjustmentMember2023-03-012023-05-310000016918us-gaap:EquityMethodInvestmentsMemberus-gaap:AccumulatedOtherComprehensiveIncomeMember2023-03-012023-05-310000016918us-gaap:AccumulatedTranslationAdjustmentMember2024-02-290000016918us-gaap:AccumulatedGainLossNetCashFlowHedgeParentMember2024-02-290000016918us-gaap:AccumulatedDefinedBenefitPlansAdjustmentMember2024-02-290000016918us-gaap:EquityMethodInvestmentsMemberus-gaap:AccumulatedOtherComprehensiveIncomeMember2024-02-290000016918us-gaap:AccumulatedDefinedBenefitPlansAdjustmentMember2024-03-012024-05-310000016918us-gaap:AccumulatedTranslationAdjustmentMember2024-05-310000016918us-gaap:AccumulatedGainLossNetCashFlowHedgeParentMember2024-05-310000016918us-gaap:AccumulatedDefinedBenefitPlansAdjustmentMember2024-05-310000016918us-gaap:EquityMethodInvestmentsMemberus-gaap:AccumulatedOtherComprehensiveIncomeMember2024-05-310000016918us-gaap:MaterialReconcilingItemsMemberus-gaap:CommodityContractMember2024-03-012024-05-310000016918us-gaap:MaterialReconcilingItemsMemberus-gaap:CommodityContractMember2023-03-012023-05-310000016918us-gaap:MaterialReconcilingItemsMember2024-03-012024-05-310000016918us-gaap:MaterialReconcilingItemsMember2023-03-012023-05-310000016918stz:BeerMemberus-gaap:OperatingSegmentsMember2023-03-012023-05-310000016918stz:WineMemberstz:ConstellationWinesAndSpiritsMemberus-gaap:OperatingSegmentsMember2024-03-012024-05-310000016918stz:WineMemberstz:ConstellationWinesAndSpiritsMemberus-gaap:OperatingSegmentsMember2023-03-012023-05-310000016918stz:SpiritsMemberstz:ConstellationWinesAndSpiritsMemberus-gaap:OperatingSegmentsMember2024-03-012024-05-310000016918stz:SpiritsMemberstz:ConstellationWinesAndSpiritsMemberus-gaap:OperatingSegmentsMember2023-03-012023-05-310000016918stz:ConstellationWinesAndSpiritsMemberus-gaap:OperatingSegmentsMember2023-03-012023-05-310000016918stz:ConstellationWinesAndSpiritsMemberus-gaap:OperatingSegmentsMember2023-05-310000016918us-gaap:OperatingSegmentsMemberus-gaap:CorporateAndOtherMember2024-03-012024-05-310000016918us-gaap:OperatingSegmentsMemberus-gaap:CorporateAndOtherMember2023-03-012023-05-310000016918us-gaap:OperatingSegmentsMemberus-gaap:CorporateAndOtherMember2024-05-310000016918us-gaap:OperatingSegmentsMemberus-gaap:CorporateAndOtherMember2023-05-310000016918stz:CanopyMember2023-03-012023-05-310000016918stz:OtherEquityMethodInvestmentsMember2024-03-012024-05-310000016918stz:OtherEquityMethodInvestmentsMember2023-03-012023-05-310000016918stz:CanopyEquityMethodInvestmentMember2024-03-012024-05-310000016918stz:A2023CanopyPromissoryNoteMember2023-05-31
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 10-Q
(Mark One)
QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
For the quarterly period ended May 31, 2024
or
TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
For the transition period from                      to                     

Commission File Number: 001-08495
image_color.jpg
CONSTELLATION BRANDS, INC.
(Exact name of registrant as specified in its charter)
Delaware16-0716709
(State or other jurisdiction of incorporation or organization)(I.R.S. Employer Identification No.)
50 East Broad Street, Rochester, New York 14614
(Address of principal executive offices) (Zip code)
(585) 678-7100
(Registrant’s telephone number, including area code)
Not Applicable
(Former name, former address and former fiscal year, if changed since last report)
Securities registered pursuant to Section 12(b) of the Act:
Title of Each ClassTrading Symbol(s)Name of Each Exchange on Which Registered
Class A Common StockSTZNew York Stock Exchange
Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.  ☒  Yes    ☐  No
Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files).  ☒  Yes    ☐  No
Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and “emerging growth company” in Rule 12b-2 of the Exchange Act.
Large accelerated filerAccelerated filer
Non-accelerated filerSmaller reporting company
Emerging growth company
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act.   ☐
Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).
Yes    No  ☒
There were 182,192,431 shares of Class A Common Stock and 25,541 shares of Class 1 Common Stock outstanding as of June 28, 2024.


TABLE OF CONTENTS
Page
DEFINED TERMS
PART I – FINANCIAL INFORMATION
Item 1. Financial Statements
Consolidated Balance Sheets
Consolidated Statements of Comprehensive Income (Loss)
Consolidated Statements of Changes in Stockholders’ Equity
Consolidated Statements of Cash Flows
Notes to Consolidated Financial Statements
1. Basis of Presentation
2. Inventories
3. Derivative Instruments
4. Fair Value of Financial Instruments
5. Goodwill
6. Intangible Assets
7. Other Assets
8. Borrowings
9. Income Taxes
10. Stockholders' Equity
11. Net Income (Loss) Per Common Share Attributable to CBI
12. Comprehensive Income (Loss) Attributable to CBI
13. Business Segment Information
14. Accounting Guidance Not Yet Adopted
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations
Item 3. Quantitative and Qualitative Disclosures About Market Risk
Item 4. Controls and Procedures
PART II – OTHER INFORMATION
Item 2. Unregistered Sales of Equity Securities and Use of Proceeds
Item 5. Other Information
Item 6. Exhibits
SIGNATURES








This Form 10-Q contains “forward-looking statements” within the meaning of Section 27A of the Securities Act and Section 21E of the Exchange Act. These forward-looking statements are subject to a number of risks and uncertainties, many of which are beyond our control, which could cause actual results to differ materially from those set forth in, or implied by, such forward-looking statements. For further information regarding such forward-looking statements, risks, and uncertainties, please see “Information Regarding Forward-Looking Statements” under MD&A.


Defined Terms

Unless the context otherwise requires, the terms “Company,” “CBI,” “we,” “our,” or “us” refer to Constellation Brands, Inc. and its subsidiaries. We use terms in this Form 10-Q and in our Notes that are specific to us or are abbreviations that may not be commonly known or used.
TermMeaning
$U.S. dollars
2021 Authorizationauthorization to repurchase up to $2.0 billion of our publicly traded common stock, approved by our Board of Directors in January 2021
2022 Credit Agreementtenth amended and restated credit agreement, dated as of April 14, 2022, that provides for an aggregate revolving credit facility of $2.25 billion, inclusive of October 2022 Credit Agreement Amendment
2023 Authorizationauthorization to repurchase up to $2.0 billion of our publicly traded common stock, approved by our Board of Directors in November 2023
2023 Canopy Promissory NoteC$100.0 million principal amount of 4.25% promissory note issued to us by Canopy in April 2023, exchanged, in part, for Exchangeable Shares in April 2024
2024 Annual Report
our Annual Report on Form 10-K for the fiscal year ended February 29, 2024
3.60% May 2022 Senior Notes
$550.0 million principal amount of 3.60% senior notes issued in May 2022, now repaid in full
3-tier
distribution channel where products are sold to a distributor (wholesaler) who then sells to a retailer; the retailer sells the products to a consumer
3-tier eCommercedigital commerce experience for consumers to purchase beverage alcohol from retailers
ABAalternative beverage alcohol
Administrative AgentBank of America, N.A., as administrative agent for the senior credit facility
Amended and Restated By-Lawsour amended and restated by-laws
AOCIaccumulated other comprehensive income (loss)
C$Canadian dollars
Canopy
Canopy Growth Corporation, an Ontario, Canada-based public company in which we have an investment
Canopy Debt Securitiesdebt securities issued by Canopy in June 2018, no longer outstanding
Canopy Equity Method Investmentan investment in Canopy common shares, no longer applicable following conversion of Canopy common shares into Exchangeable Shares in April 2024
CB International
CB International Finance S.à r.l., a wholly-owned subsidiary of ours
Class 1 Stockour Class 1 Convertible Common Stock, par value $0.01 per share
Class A Stockour Class A Common Stock, par value $0.01 per share
CODMchief operating decision maker, our President and Chief Executive Officer
Comparable Adjustmentscertain items affecting comparability that have been excluded by management
CPGconsumer packaged goods
Craft Beer Divestituresthe Four Corners Divestiture and the Funky Buddha Divestiture, collectively
Daleville Facilityproduction facility located in Roanoke, Virginia, sold in May 2023
Depletions
represent U.S. distributor shipments of our respective branded products to retail customers, based on third-party data
Digital Business Accelerationa multi-year initiative by the Company to create a cohesive digital strategy and build an advanced digital business
DTCdirect-to-consumer inclusive of (i) a digital commerce experience for consumers to purchase directly from brand websites with inventory coming straight from the supplier and (ii) consumer purchases at hospitality locations (tasting rooms and tap rooms) from the supplier
ESGenvironmental, social, and governance
Constellation Brands, Inc. Q1 FY 2025 Form 10-Q
#WORTHREACHINGFOR    I    i

TermMeaning
Exchangeable Sharesnew class of non-voting and non-participating exchangeable shares in Canopy which are convertible into common shares of Canopy on a one-for-one basis
Exchange ActSecurities Exchange Act of 1934, as amended
FASBFinancial Accounting Standards Board
Financial Statements
our consolidated financial statements and notes thereto included herein
First Quarter 2024
the Company’s three months ended May 31, 2023
First Quarter 2025
the Company’s three months ended May 31, 2024
Fiscal 2024the Company’s fiscal year ended February 29, 2024
Fiscal 2025the Company’s fiscal year ending February 28, 2025
Fiscal 2026the Company’s fiscal year ending February 28, 2026
Fiscal 2027the Company’s fiscal year ending February 28, 2027
Fiscal 2028the Company’s fiscal year ending February 29, 2028
Fiscal 2029the Company’s fiscal year ending February 28, 2029
Fiscal 2030
the Company’s fiscal year ending February 28, 2030
Form 10-Q
this Quarterly Report on Form 10-Q for the quarterly period ended May 31, 2024, unless otherwise specified
Four Corners Divestituresale of the Four Corners craft beer business
Funky Buddha Divestituresale of the Funky Buddha craft beer business
GHGgreenhouse gas
IRAInflation Reduction Act of 2022
ITinformation technology
MD&A
Management’s Discussion and Analysis of Financial Condition and Results of Operations under Part I Item 2. of this Form 10-Q
Mexicali Brewery
canceled brewery construction project located in Mexicali, Baja California, Mexico, closed on the sale of the remaining assets classified as held for sale in July 2024
Mexico Beer Projectsexpansion, optimization, and/or construction activities at the Obregón Brewery, Nava Brewery, and Veracruz Brewery
M&TManufacturers and Traders Trust Company
NAnot applicable
NavaNava, Coahuila, Mexico
Nava Brewerybrewery located in Nava
Net salesgross sales less promotions, returns and allowances, and excise taxes
NMnot meaningful
Note(s)notes to the consolidated financial statements
Obregón
Obregón, Sonora, Mexico
Obregón Brewery
brewery located in Obregón
OCIother comprehensive income (loss)
October 2022 Credit Agreement Amendmentamendment dated as of October 18, 2022, to the 2022 Credit Agreement, effective in April 2024
Pre-issuance hedge contractstreasury lock and/or swap lock contracts designated as cash flow hedges entered into to hedge treasury rate volatility on future debt issuances
Constellation Brands, Inc. Q1 FY 2025 Form 10-Q
#WORTHREACHINGFOR    I    ii

TermMeaning
Sands Family Stockholders
RES Master LLC, RES Business Holdings LP, SER Business Holdings LP, RHT 2015 Business Holdings LP, RSS Master LLC, RSS Business Holdings LP, SSR Business Holdings LP, RSS 2015 Business Holdings LP, RCT 2015 Business Holdings LP, RCT 2020 Investments LLC, NSDT 2009 STZ LLC, NSDT 2011 STZ LLC, RSS Business Management LLC, SSR Business Management LLC, LES Lauren Holdings LLC, MES Mackenzie Holdings LLC, Abigail Bennett, Zachary Stern, A&Z 2015 Business Holdings LP (subsequently liquidated), Marilyn Sands Master Trust, MAS Business Holdings LP, Sands Family Foundation, Richard Sands, Robert Sands, WildStar Partners LLC, Astra Legacy LLC, AJB Business Holdings LP, and ZMSS Business Holdings LP
Sea Smoke
Sea Smoke wine business, acquired by us
SECSecurities and Exchange Commission
Securities ActSecurities Act of 1933, as amended
SOFRsecured overnight financing rate administered by the Federal Reserve Bank of New York
U.S.United States of America
VeracruzHeroica Veracruz, Veracruz, Mexico
Veracruz Brewerya new brewery being constructed in Veracruz
Constellation Brands, Inc. Q1 FY 2025 Form 10-Q
#WORTHREACHINGFOR    I    iii

FINANCIAL STATEMENTS
PART I – FINANCIAL INFORMATION
Item 1.    Financial Statements.
CONSTELLATION BRANDS, INC. AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
(in millions, except share and per share data)
(unaudited)
May 31,
2024
February 29,
2024
ASSETS
Current assets:
Cash and cash equivalents$73.8 $152.4 
Accounts receivable893.9 832.8 
Inventories2,127.0 2,078.3 
Prepaid expenses and other733.7 666.0 
Total current assets3,828.4 3,729.5 
Property, plant, and equipment8,298.0 8,055.2 
Goodwill7,985.4 7,980.3 
Intangible assets2,731.5 2,731.7 
Deferred income taxes2,020.3 2,055.0 
Other assets1,196.5 1,140.0 
Total assets$26,060.1 $25,691.7 
LIABILITIES AND STOCKHOLDERS’ EQUITY
Current liabilities:
Short-term borrowings$793.2 $241.4 
Current maturities of long-term debt406.2 956.8 
Accounts payable1,139.3 1,107.1 
Other accrued expenses and liabilities783.5 836.4 
Total current liabilities3,122.2 3,141.7 
Long-term debt, less current maturities10,682.9 10,681.1 
Deferred income taxes and other liabilities1,683.1 1,804.3 
Total liabilities15,488.2 15,627.1 
Commitments and contingencies
CBI stockholders’ equity:
Class A Stock, $0.01 par value – Authorized, 322,000,000 shares;
Issued, 212,698,298 shares and 212,698,298 shares, respectively
2.1 2.1 
Additional paid-in capital2,070.3 2,047.3 
Retained earnings14,109.5 13,417.2 
Accumulated other comprehensive income (loss)367.8 376.8 
Class A Stock in treasury, at cost, 30,341,484 shares and 29,809,881 shares, respectively
(6,297.9)(6,100.3)
Total CBI stockholders’ equity10,251.8 9,743.1 
Noncontrolling interests320.1 321.5 
Total stockholders’ equity10,571.9 10,064.6 
Total liabilities and stockholders’ equity$26,060.1 $25,691.7 

The accompanying notes are an integral part of these statements.
Constellation Brands, Inc. Q1 FY 2025 Form 10-Q
#WORTHREACHINGFOR    I    1

FINANCIAL STATEMENTS
CONSTELLATION BRANDS, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS)
(in millions, except per share data)
(unaudited)
For the Three Months
Ended May 31,
20242023
Sales$2,860.7 $2,699.5 
Excise taxes(198.9)(184.6)
Net sales2,661.8 2,514.9 
Cost of product sold(1,258.0)(1,257.1)
Gross profit1,403.8 1,257.8 
Selling, general, and administrative expenses(462.2)(493.1)
Operating income (loss)941.6 764.7 
Income (loss) from unconsolidated investments82.0 (415.4)
Interest expense, net
(102.8)(118.9)
Income (loss) before income taxes920.8 230.4 
(Provision for) benefit from income taxes(28.0)(91.2)
Net income (loss)892.8 139.2 
Net (income) loss attributable to noncontrolling interests(15.8)(3.3)
Net income (loss) attributable to CBI$877.0 $135.9 
Comprehensive income (loss)$884.1 $364.5 
Comprehensive (income) loss attributable to noncontrolling interests(16.1)(14.2)
Comprehensive income (loss) attributable to CBI$868.0 $350.3 
Class A Stock:
Net income (loss) per common share attributable to CBI – basic
$4.80 $0.74 
Net income (loss) per common share attributable to CBI – diluted
$4.78 $0.74 
Weighted average common shares outstanding – basic
182.766 183.270 
Weighted average common shares outstanding – diluted
183.461 183.863 
Cash dividends declared per common share
$1.01 $0.89 

The accompanying notes are an integral part of these statements.

Constellation Brands, Inc. Q1 FY 2025 Form 10-Q
#WORTHREACHINGFOR    I    2

FINANCIAL STATEMENTS
CONSTELLATION BRANDS, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS’ EQUITY
(in millions)
(unaudited)
Class A
Stock
Additional
Paid-in
Capital
Retained
Earnings
Accumulated
Other
Comprehensive
Income (Loss)
Treasury
Stock
Non-controlling
Interests
Total
Balance at February 29, 2024
$2.1 $2,047.3 $13,417.2 $376.8 $(6,100.3)$321.5 $10,064.6 
Comprehensive income (loss):
Net income (loss)  877.0   15.8 892.8 
Other comprehensive income (loss), net of income tax effect   (9.0) 0.3 (8.7)
Comprehensive income (loss)884.1 
Repurchase of shares    (200.0) (200.0)
Dividends declared  (184.7)   (184.7)
Non-controlling interest distributions     (17.5)(17.5)
Shares issued under equity compensation plans 5.7   2.4  8.1 
Stock-based compensation 17.3     17.3 
Balance at May 31, 2024
$2.1 $2,070.3 $14,109.5 $367.8 $(6,297.9)$320.1 $10,571.9 
Balance at February 28, 2023$2.1 $1,903.0 $12,343.9 $28.5 $(5,863.9)$320.3 $8,733.9 
Comprehensive income (loss):
Net income (loss)— — 135.9 — — 3.3 139.2 
Other comprehensive income (loss), net of income tax effect— — — 214.4 — 10.9 225.3 
Comprehensive income (loss)364.5 
Repurchase of shares— — — — (35.0)— (35.0)
Dividends declared— — (163.1)— — — (163.1)
Noncontrolling interest distributions— — — — — (11.3)(11.3)
Shares issued under equity compensation plans— 0.6 — — 4.1 — 4.7 
Stock-based compensation— 14.5 — — — — 14.5 
Balance at May 31, 2023$2.1 $1,918.1 $12,316.7 $242.9 $(5,894.8)$323.2 $8,908.2 

The accompanying notes are an integral part of these statements.
Constellation Brands, Inc. Q1 FY 2025 Form 10-Q
#WORTHREACHINGFOR    I    3

FINANCIAL STATEMENTS
CONSTELLATION BRANDS, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CASH FLOWS
(in millions)
(unaudited)
For the Three Months
Ended May 31,
20242023
CASH FLOWS FROM OPERATING ACTIVITIES
Net income (loss)$892.8 $139.2 
Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities:
Unrealized net (gain) loss on securities measured at fair value 71.8 
Deferred tax provision (benefit)25.0 (0.3)
Depreciation111.6 105.3 
Stock-based compensation17.3 14.5 
Equity in (earnings) losses of equity method investees and related activities, net of distributed earnings1.3 220.6 
Noncash lease expense29.1 22.0 
Impairment of equity method investments
 123.5 
Net gain on conversion and exchange to Exchangeable Shares
(83.3) 
Change in operating assets and liabilities, net of effects from purchase and sale of business:
Accounts receivable(63.4)(31.5)
Inventories(47.3)(57.6)
Prepaid expenses and other current assets(61.4)(17.9)
Accounts payable62.7 34.2 
Deferred revenue15.6 24.3 
Other accrued expenses and liabilities(97.7)(73.2)
Other(111.8)90.5 
Total adjustments(202.3)526.2 
Net cash provided by (used in) operating activities690.5 665.4 
CASH FLOWS FROM INVESTING ACTIVITIES
Purchase of property, plant, and equipment(375.3)(277.0)
Investments in equity method investees and securities(13.0)(21.6)
Proceeds from sale of assets12.9  
Proceeds from sale of business 6.7 
Other investing activities(2.0) 
Net cash provided by (used in) investing activities(377.4)(291.9)
Constellation Brands, Inc. Q1 FY 2025 Form 10-Q
#WORTHREACHINGFOR    I    4

FINANCIAL STATEMENTS
CONSTELLATION BRANDS, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CASH FLOWS
(in millions)
(unaudited)
For the Three Months
Ended May 31,
20242023
CASH FLOWS FROM FINANCING ACTIVITIES
Proceeds from issuance of long-term debt 744.8 
Principal payments of long-term debt(552.2)(502.5)
Net proceeds from (repayments of) short-term borrowings551.8 (346.3)
Dividends paid(185.3)(164.1)
Purchases of treasury stock(200.0)(35.0)
Proceeds from shares issued under equity compensation plans24.7 15.9 
Payments of minimum tax withholdings on stock-based payment awards(13.8)(11.2)
Payments of debt issuance, debt extinguishment, and other financing costs (5.0)
Distributions to noncontrolling interests(17.5)(11.3)
Payment of contingent consideration
(0.7) 
Net cash provided by (used in) financing activities(393.0)(314.7)
Effect of exchange rate changes on cash and cash equivalents1.3 0.2 
Net increase (decrease) in cash and cash equivalents(78.6)59.0 
Cash and cash equivalents, beginning of period152.4 133.5 
Cash and cash equivalents, end of period$73.8 $192.5 
Supplemental disclosures of noncash investing and financing activities
Additions to property, plant, and equipment$195.2 $142.2 

The accompanying notes are an integral part of these statements.
Constellation Brands, Inc. Q1 FY 2025 Form 10-Q
#WORTHREACHINGFOR    I    5

FINANCIAL STATEMENTSNOTES TO CONSOLIDATED FINANCIAL STATEMENTS
CONSTELLATION BRANDS, INC. AND SUBSIDIARIES
MAY 31, 2024
(unaudited)

1.    BASIS OF PRESENTATION

We have prepared the Financial Statements, without audit, pursuant to the rules and regulations of the SEC applicable to quarterly reporting on Form 10-Q and reflect, in our opinion, all adjustments necessary to present fairly our financial information. All such adjustments are of a normal recurring nature. Certain information and footnote disclosures normally included in financial statements, prepared in accordance with generally accepted accounting principles, have been condensed or omitted as permitted by such rules and regulations. These Financial Statements should be read in conjunction with the consolidated financial statements and related notes included in the 2024 Annual Report. Results of operations for interim periods are not necessarily indicative of annual results.

Reclassification
We reclassified equity method investments to other assets on our consolidated balance sheet as of February 29, 2024, to conform with current year presentation.

2.    INVENTORIES

Inventories are stated at the lower of cost (primarily computed in accordance with the first-in, first-out method) or net realizable value. Elements of cost include materials, labor, and overhead and consist of the following:
May 31,
2024
February 29,
2024
(in millions)
Raw materials and supplies$244.1 $254.1 
In-process inventories1,109.5 1,096.0 
Finished case goods773.4 728.2 
$2,127.0 $2,078.3 

3.    DERIVATIVE INSTRUMENTS

Overview
Our risk management and derivative accounting policies are presented in Notes 1 and 6 of our consolidated financial statements included in our 2024 Annual Report and have not changed significantly for the three months ended May 31, 2024.

The aggregate notional value of outstanding derivative instruments is as follows:
May 31,
2024
February 29,
2024
(in millions)
Derivative instruments designated as hedging instruments
Foreign currency contracts$2,083.1 $2,045.6 
Derivative instruments not designated as hedging instruments
Foreign currency contracts$829.5 $735.9 
Commodity derivative contracts$351.5 $397.5 

Credit risk
We are exposed to credit-related losses if the counterparties to our derivative contracts default. This credit risk is limited to the fair value of the derivative contracts. To manage this risk, we contract only with major
Constellation Brands, Inc. Q1 FY 2025 Form 10-Q
#WORTHREACHINGFOR    I    6

FINANCIAL STATEMENTSNOTES TO CONSOLIDATED FINANCIAL STATEMENTS
financial institutions that have earned investment-grade credit ratings and with whom we have standard International Swaps and Derivatives Association agreements which allow for net settlement of the derivative contracts. We have also established counterparty credit guidelines that are regularly monitored. Because of these safeguards, we believe the risk of loss from counterparty default to be immaterial.

In addition, our derivative instruments are not subject to credit rating contingencies or collateral requirements. As of May 31, 2024, the estimated fair value of derivative instruments in a net liability position due to counterparties was $2.2 million. If we were required to settle the net liability position under these derivative instruments on May 31, 2024, we would have had sufficient available liquidity on hand to satisfy this obligation.

Results of period derivative activity
The estimated fair value and location of our derivative instruments on our balance sheets are as follows (see Note 4):
AssetsLiabilities
May 31,
2024
February 29,
2024
May 31,
2024
February 29,
2024
(in millions)
Derivative instruments designated as hedging instruments
Foreign currency contracts:
Prepaid expenses and other$148.0 $154.1 Other accrued expenses and liabilities$2.5 $3.5 
Other assets$141.0 $153.5 Deferred income taxes and other liabilities$0.5 $0.2 
Derivative instruments not designated as hedging instruments
Foreign currency contracts:
Prepaid expenses and other$2.7 $3.6 Other accrued expenses and liabilities$3.8 $1.7 
Commodity derivative contracts:
Prepaid expenses and other$11.2 $4.8 Other accrued expenses and liabilities$19.1 $27.9 
Other assets$5.7 $1.4 Deferred income taxes and other liabilities$4.5 $8.1 

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, 2024
Foreign currency contracts$26.1 Sales$0.1 
Cost of product sold39.1 
$26.1 $39.2 
For the Three Months Ended May 31, 2023
Foreign currency contracts$79.3 Sales$ 
Cost of product sold26.4 
Pre-issuance hedge contracts0.6 
Interest expense, net
(0.2)
$79.9 $26.2 
Constellation Brands, Inc. Q1 FY 2025 Form 10-Q
#WORTHREACHINGFOR    I    7

FINANCIAL STATEMENTSNOTES TO CONSOLIDATED FINANCIAL STATEMENTS
We expect $128.3 million of net gains, net of income tax effect, to be reclassified from AOCI to our results of operations within the next 12 months.

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, 2024
Commodity derivative contractsCost of product sold$14.6 
Foreign currency contractsSelling, general, and administrative expenses4.0 
$18.6 
For the Three Months Ended May 31, 2023
Commodity derivative contractsCost of product sold$(34.7)
Foreign currency contractsSelling, general, and administrative expenses12.7 
$(22.0)

4.    FAIR VALUE OF FINANCIAL INSTRUMENTS

Authoritative guidance establishes a framework for measuring fair value, including a hierarchy for inputs used in measuring fair value that maximizes the use of observable inputs and minimizes the use of unobservable inputs by requiring that the most observable inputs be used when available. The hierarchy includes three levels:

Level 1 inputs are quoted prices in active markets for identical assets or liabilities;
Level 2 inputs include data points that are observable such as quoted prices for similar assets or liabilities in active markets, quoted prices for identical assets or similar assets or liabilities in markets that are not active, and inputs (other than quoted prices) such as volatility, interest rates, and yield curves that are observable for the asset or liability, either directly or indirectly; and
Level 3 inputs are unobservable data points for the asset or liability, and include situations where there is little, if any, market activity for the asset or liability.

Fair value methodology
The following methods and assumptions are used to estimate the fair value of our financial instruments:

Foreign currency and commodity derivative contracts
The fair value is estimated using market-based inputs, obtained from independent pricing services, entered into valuation models. These valuation models require various inputs, including contractual terms, market foreign exchange prices, market commodity prices, interest-rate yield curves, and currency volatilities, as applicable (Level 2 fair value measurement).

Short-term borrowings
Our short-term borrowings consist of our commercial paper program and the revolving credit facility under our senior credit facility. The revolving credit facility is a variable interest rate bearing note with a fixed margin, adjustable based upon our debt rating (as defined in our senior credit facility). For these short-term borrowings, the carrying value approximates the fair value.

Long-term debt
The fair value of our fixed interest rate long-term debt is estimated by discounting cash flows using interest rates currently available for debt with similar terms and maturities (Level 2 fair value measurement). As of May 31, 2024, the carrying amount of long-term debt, including the current portion, was $11,089.1 million, compared with an estimated fair value of $10,176.1 million. As of February 29, 2024, the carrying amount of long-
Constellation Brands, Inc. Q1 FY 2025 Form 10-Q
#WORTHREACHINGFOR    I    8

FINANCIAL STATEMENTSNOTES TO CONSOLIDATED FINANCIAL STATEMENTS
term debt, including the current portion, was $11,637.9 million, compared with an estimated fair value of $10,775.8 million.

The carrying amounts of certain of our financial instruments, including cash and cash equivalents, accounts receivable, and accounts payable, approximate fair value as of May 31, 2024, and February 29, 2024, due to the relatively short maturity of these instruments.

Recurring basis measurements
The following table presents our financial assets and liabilities measured at estimated fair value on a recurring basis:
Fair Value Measurements Using
Quoted
Prices in
Active
Markets
(Level 1)
Significant
Other
Observable
Inputs
(Level 2)
Significant
Unobservable
Inputs
(Level 3)
Total
(in millions)
May 31, 2024
Assets:
Foreign currency contracts$ $291.7 $ $291.7 
Commodity derivative contracts$ $16.9 $ $16.9 
Liabilities:
Foreign currency contracts$ $6.8 $ $6.8 
Commodity derivative contracts$ $23.6 $ $23.6 
February 29, 2024
Assets:
Foreign currency contracts$ $311.2 $ $311.2 
Commodity derivative contracts$ $6.2 $ $6.2 
Liabilities:
Foreign currency contracts$ $5.4 $ $5.4 
Commodity derivative contracts$ $36.0 $ $36.0 

Nonrecurring basis measurements
The following table presents our assets and liabilities measured at estimated fair value on a nonrecurring basis for which an impairment assessment was performed for the periods presented:
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 Three Months Ended May 31, 2023
Equity method investments$142.7 $ $ $123.5 

Equity method investments
We evaluated the Canopy Equity Method Investment as of May 31, 2023, and determined there was an other-than-temporary impairment. Our conclusion was based on several contributing factors, including: (i) the fair value being less than the carrying value and the uncertainty surrounding Canopy’s stock price recovering in the near-term, (ii) Canopy recorded significant costs in its fourth quarter of fiscal 2023 results designed to align its
Constellation Brands, Inc. Q1 FY 2025 Form 10-Q
#WORTHREACHINGFOR    I    9

FINANCIAL STATEMENTSNOTES TO CONSOLIDATED FINANCIAL STATEMENTS
Canadian cannabis operations and resources in response to continued unfavorable market trends, (iii) the substantial doubt about Canopy’s ability to continue as a going concern, as disclosed by Canopy, and (iv) Canopy’s identification of material misstatements in certain of its previously reported financial results related to sales in its BioSteel Sports Nutrition Inc. reporting unit that were accounted for incorrectly, including the recording of a goodwill impairment during its restated second quarter of fiscal 2023. As a result, the Canopy Equity Method Investment with a carrying value of $266.2 million was written down to its estimated fair value of $142.7 million, resulting in an impairment of $123.5 million. This loss from impairment was included in income (loss) from unconsolidated investments within our consolidated results for the three months ended May 31, 2023. The estimated fair value was determined based on the closing price of the underlying equity security as of May 31, 2023. We no longer apply the equity method to our investment in Canopy following the April 2024 conversion of our Canopy common shares to Exchangeable Shares. See Note 7 for further discussion.

5.    GOODWILL

The changes in the carrying amount of goodwill are as follows:
BeerWine and SpiritsConsolidated
(in millions)
Balance, February 28, 2023$5,188.9 $2,736.5 $7,925.4 
Purchase accounting allocations (1)
 6.5 6.5 
Foreign currency translation adjustments49.3 (0.9)48.4 
Balance, February 29, 20245,238.2 2,742.1 7,980.3 
Foreign currency translation adjustments4.4 0.7 5.1 
Balance, May 31, 2024$5,242.6 $2,742.8 $7,985.4 
(1)Purchase accounting allocations associated with the June 2023 acquisition of the Domaine Curry wine business.

If broader industry and market conditions decline and/or our expectations of future performance as reflected in our current strategic operating plans are not fully realized, a future impairment of Wine and Spirits goodwill is reasonably possible.

Subsequent event
Sea Smoke acquisition
In June 2024, we acquired the Sea Smoke business, including a California-based luxury wine brand, vineyards, and a production facility for $170.0 million, subject to adjustments. This transaction also included the acquisition of a trademark, inventory, and goodwill. The results of operations of Sea Smoke will be reported in the Wine and Spirits segment and will be included in our consolidated results of operations from the date of acquisition.

Constellation Brands, Inc. Q1 FY 2025 Form 10-Q
#WORTHREACHINGFOR    I    10

FINANCIAL STATEMENTSNOTES TO CONSOLIDATED FINANCIAL STATEMENTS
6.    INTANGIBLE ASSETS

The major components of intangible assets are as follows:
May 31, 2024February 29, 2024
Gross
Carrying
Amount
Net
Carrying
Amount
Gross
Carrying
Amount
Net
Carrying
Amount
(in millions)
Amortizable intangible assets
Customer relationships$85.4 $15.8 $85.3 $16.2 
Other20.8 0.3 20.8 0.3 
Total$106.2 16.1 $106.1 16.5 
Nonamortizable intangible assets
Trademarks 2,715.4 2,715.2 
Total intangible assets$2,731.5 $2,731.7 

We did not incur costs to renew or extend the term of acquired intangible assets for the three months ended May 31, 2024, and May 31, 2023. Net carrying amount represents the gross carrying value net of accumulated amortization.

7.    OTHER ASSETS

The major components of other assets are as follows:
May 31,
2024
February 29,
2024
(in millions)
Operating lease right-of-use asset$606.2 $615.3 
Derivative assets146.7 154.9 
Equity method investments126.9 170.6 
Exchangeable Shares97.3  
Other investments in debt and equity securities
86.0 73.0 
Assets held for sale
26.1 25.7 
Other107.3 100.5 
$1,196.5 $1,140.0 

Equity method investments
The carrying value of our equity method investments are as follows:
May 31,
2024
February 29,
2024
(in millions)
Canopy Equity Method Investment (1)
$ $42.5 
Other equity method investments126.9 128.1 
$126.9 $170.6 
(1)Following the April 2024 conversion to Exchangeable Shares we no longer apply the equity method.

Constellation Brands, Inc. Q1 FY 2025 Form 10-Q
#WORTHREACHINGFOR    I    11

FINANCIAL STATEMENTSNOTES TO CONSOLIDATED FINANCIAL STATEMENTS
Exchangeable Shares
In April 2024, we elected to convert our 17.1 million Canopy common shares into Exchangeable Shares on a one-for-one basis. Additionally, in April 2024, we exchanged C$81.2 million of the principal amount of the C$100.0 million 4.25% promissory note issued to us by Canopy for 9.1 million Exchangeable Shares and forgave all accrued but unpaid interest together with the remaining principal amount of the note. As a result of these transactions, we (i) have 26.3 million Exchangeable Shares and (ii) recognized an $83.3 million net gain in income (loss) from unconsolidated investments within our consolidated results of operations for the three months ended May 31, 2024. The fair value of Exchangeable Shares on the date of the conversion and exchange was estimated using a valuation model based primarily on the following inputs: (i) Canopy’s common share price, (ii) the expected volatility of Canopy’s common shares, and (iii) the probability and timing of U.S. federal legalization of recreational cannabis. As the Exchangeable Shares are an equity security without a readily determinable fair value, we elected to account for the Exchangeable Shares under the measurement alternative method. Future impairments, if any, will also be reported in income (loss) from unconsolidated investments within our consolidated results.

Other investments in debt and equity securities
We have multiple investments through our corporate venture capital function in debt and equity securities.

Subsequent event
Mexicali Brewery
In July 2024, we closed on the sale of the remaining assets classified as held for sale at the canceled Mexicali Brewery. These net assets had met held for sale criteria as of May 31, 2024, and February 29, 2024.

8.    BORROWINGS

Borrowings consist of the following:
May 31, 2024February 29,
2024
CurrentLong-termTotalTotal
(in millions)
Short-term borrowings
Commercial paper$793.2 $241.4 
$793.2 $241.4 
Long-term debt
Senior notes$399.7 $10,673.7 $11,073.4 $11,620.1 
Other6.5 9.2 15.7 17.8 
$406.2 $10,682.9 $11,089.1 $11,637.9 

Bank facilities
The Company, CB International, the Administrative Agent, and certain other lenders are parties to the 2022 Credit Agreement. The October 2022 Credit Agreement Amendment revised certain defined terms and covenants in the 2022 Credit Agreement and became effective in April 2024 following (i) the amendment by Canopy of its Articles of Incorporation, (ii) the conversion of our Canopy common shares into Exchangeable Shares, and (iii) the resignation of our nominees from the board of directors of Canopy.

Constellation Brands, Inc. Q1 FY 2025 Form 10-Q
#WORTHREACHINGFOR    I    12

FINANCIAL STATEMENTSNOTES TO CONSOLIDATED FINANCIAL STATEMENTS
Information with respect to borrowings under the 2022 Credit Agreement is as follows:
Outstanding
borrowings
Interest
rate
SOFR
margin
Outstanding
letters of
credit
Remaining
borrowing
capacity (1)
(in millions)
May 31, 2024
Revolving credit facility (2) (3)
$  % %$11.4 $1,443.1 
February 29, 2024
Revolving credit facility (2) (3)
$  % %$11.5 $1,997.0 
(1)Net of outstanding revolving credit facility borrowings and outstanding letters of credit under the 2022 Credit Agreement and outstanding borrowings under our commercial paper program of $795.5 million and $241.5 million (excluding unamortized discount) as of May 31, 2024 and February 29, 2024, respectively (see “Commercial paper program” below).
(2)Contractual interest rate varies based on our debt rating (as defined in the agreement) and is a function of SOFR plus a margin and a credit spread adjustment, or the base rate plus a margin, or, in certain circumstances where SOFR cannot be adequately ascertained or available, an alternative benchmark rate plus a margin.
(3)We and/or CB International are the borrower under the $2,250.0 million revolving credit facility with a maturity date of April 14, 2027. Includes a sub-facility for letters of credit of up to $200.0 million.

We and our subsidiaries are subject to covenants that are contained in the 2022 Credit Agreement, including those restricting the incurrence of additional subsidiary indebtedness, additional liens, mergers and consolidations, transactions with affiliates, and sale and leaseback transactions, in each case subject to numerous conditions, exceptions, and thresholds. The financial covenants are limited to a minimum interest coverage ratio and a maximum net leverage ratio.

Commercial paper program
We have a commercial paper program which provides for the issuance of up to an aggregate principal amount of $2.25 billion of commercial paper. Our commercial paper program is backed by unused commitments under our revolving credit facility under our 2022 Credit Agreement. Accordingly, outstanding borrowings under our commercial paper program reduce the amount available under our revolving credit facility. Information with respect to our outstanding commercial paper borrowings is as follows:
May 31,
2024
February 29,
2024
(in millions)
Outstanding borrowings (1)
$793.2 $241.4 
Weighted average annual interest rate5.7 %5.7 %
Weighted average remaining term20 days4 days
(1)Outstanding commercial paper borrowings are net of unamortized discount.

Constellation Brands, Inc. Q1 FY 2025 Form 10-Q
#WORTHREACHINGFOR    I    13

FINANCIAL STATEMENTSNOTES TO CONSOLIDATED FINANCIAL STATEMENTS
Debt payments
As of May 31, 2024, the required principal repayments under long-term debt obligations (excluding unamortized debt issuance costs and unamortized discounts of $53.8 million and $22.8 million, respectively) for the remaining nine months of Fiscal 2025 and for each of the five succeeding fiscal years and thereafter are as follows:
(in millions)
Fiscal 2025$405.3 
Fiscal 20261,404.9 
Fiscal 2027603.8 
Fiscal 20281,801.5 
Fiscal 2029900.1 
Fiscal 2030
800.0 
Thereafter5,250.1 
$11,165.7 

9.    INCOME TAXES

Our effective tax rate for the three months ended May 31, 2024, and May 31, 2023, was 3.0% and 39.6%, respectively.

For the three months ended May 31, 2024, our effective tax rate was lower than the federal statutory rate of 21% primarily due to (i) a net income tax benefit recognized as a result of the resolution of various tax examinations and assessments related to prior periods, (ii) the benefit of lower effective tax rates applicable to our foreign businesses, and (iii) a decrease in the valuation allowance related to our investment in Canopy.

For the three months ended May 31, 2023, our effective tax rate was higher than the federal statutory rate of 21% primarily due to an increase in the valuation allowance related to our investment in Canopy, partially offset by (i) a net income tax benefit recognized as a result of a change in tax entity classification and (ii) the benefit of lower effective tax rates applicable to our foreign businesses.

The Organization for Economic Cooperation and Development introduced a framework under Pillar Two which includes a global minimum tax rate of 15%. Many jurisdictions in which we do business have started to enact laws implementing Pillar Two. We are monitoring these developments and currently do not believe these rules will have a material impact on our financial condition and/or consolidated results.

10.    STOCKHOLDERS’ EQUITY

Common stock
The number of shares of common stock issued and treasury stock, and associated share activity, are as follows:
Class A
Stock
Class 1
Stock
Class A
Stock in
Treasury
Balance at February 29, 2024
212,698,298 23,661 29,809,881 
Share repurchases— — 775,334 
Exercise of stock options— 1,880 (149,324)
Vesting of restricted stock units (1)
— — (85,650)
Vesting of performance share units (1)
— — (8,757)
Balance at May 31, 2024
212,698,298 25,541 30,341,484 
Constellation Brands, Inc. Q1 FY 2025 Form 10-Q
#WORTHREACHINGFOR    I    14

FINANCIAL STATEMENTSNOTES TO CONSOLIDATED FINANCIAL STATEMENTS
Class A
Stock
Class 1
Stock
Class A
Stock in
Treasury
Balance at February 28, 2023
212,697,428 22,705 29,498,426 
Share repurchases— — 153,937 
Conversion of shares80 (80)— 
Exercise of stock options— 800 (129,595)
Vesting of restricted stock units (1)
— — (71,189)
Vesting of performance share units (1)
— — (13,113)
Balance at May 31, 2023
212,697,508 23,425 29,438,466 
(1)Net of the following shares withheld to satisfy tax withholding requirements:
For the Three
Months Ended
May 31,
2024
Restricted Stock Units48,501 
Performance Share Units5,728 
2023
Restricted Stock Units39,839 
Performance Share Units8,735 

Stock repurchases
In each of January 2021 and November 2023, our Board of Directors authorized the repurchase of up to $2.0 billion of our publicly traded common stock. The Board of Directors did not specify a date upon which these authorizations would expire. Shares repurchased under these authorizations become treasury shares.

For the three months ended May 31, 2024, we repurchased 775,334 shares of Class A Stock pursuant to the 2021 Authorization through open market transactions at an aggregate cost of $200.0 million. Beginning May 31, 2024, we repurchased 187,843 shares of Class A Stock pursuant to the 2021 Authorization at an aggregate cost of $47.0 million through open market transactions made pursuant to a Rule 10b5-1 trading plan.

As of July 3, 2024, total shares repurchased under our board authorizations are as follows:
Class A Stock
Repurchase
Authorization
Dollar Value
of Shares
Repurchased
Number of
Shares
Repurchased
(in millions, except share data)
2021 Authorization (1)
$2,000.0 $1,633.3 6,838,453
2023 Authorization (1)
$2,000.0 $ 
(1)As of July 3, 2024, $2,366.7 million remains available for future share repurchases, excluding the impact of Federal excise tax owed pursuant to the IRA.

11.    NET INCOME (LOSS) PER COMMON SHARE ATTRIBUTABLE TO CBI

For the three months ended May 31, 2024, and 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.
Constellation Brands, Inc. Q1 FY 2025 Form 10-Q
#WORTHREACHINGFOR    I    15

FINANCIAL STATEMENTSNOTES TO CONSOLIDATED FINANCIAL STATEMENTS
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,
20242023
(in millions, except per share data)
Net income (loss) attributable to CBI$877.0 $135.9 
Weighted average common shares outstanding – basic182.766 183.270 
Stock-based awards, primarily stock options0.695 0.593 
Weighted average common shares outstanding – diluted183.461 183.863 
Net income (loss) per common share attributable to CBI – basic$4.80 $0.74 
Net income (loss) per common share attributable to CBI – diluted$4.78 $0.74 

12.    COMPREHENSIVE INCOME (LOSS) ATTRIBUTABLE TO CBI

Comprehensive income (loss) consists of net income (loss), foreign currency translation adjustments, unrealized net gain (loss) on derivative instruments, pension/postretirement adjustments, and our share of OCI of equity method investments. The reconciliation of net income (loss) attributable to CBI to comprehensive income (loss) attributable to CBI is as follows:
Before Tax
Amount
Tax (Expense)
Benefit
Net of Tax
Amount
(in millions)
For the Three Months Ended May 31, 2024
Net income (loss) attributable to CBI$877.0 
Other comprehensive income (loss) attributable to CBI:
Foreign currency translation adjustments:
Net gain (loss)$13.5 $ 13.5 
Amounts reclassified   
Net gain (loss) recognized in other comprehensive income (loss)13.5  13.5 
Unrealized gain (loss) on cash flow hedges:
Net derivative gain (loss)28.2 (3.3)24.9 
Amounts reclassified(42.1)5.0 (37.1)
Net gain (loss) recognized in other comprehensive income (loss)(13.9)1.7 (12.2)
Share of OCI of equity method investments
Net gain (loss)   
Amounts reclassified(10.3) (10.3)
Net gain (loss) recognized in other comprehensive income (loss)(10.3) (10.3)
Other comprehensive income (loss) attributable to CBI$(10.7)$1.7 (9.0)
Comprehensive income (loss) attributable to CBI$868.0 
Constellation Brands, Inc. Q1 FY 2025 Form 10-Q
#WORTHREACHINGFOR    I    16

FINANCIAL STATEMENTSNOTES TO CONSOLIDATED FINANCIAL STATEMENTS
Before Tax
Amount
Tax (Expense)
Benefit
Net of Tax
Amount
(in millions)
For the Three Months Ended May 31, 2023
Net income (loss) attributable to CBI$135.9 
Other comprehensive income (loss) attributable to CBI:
Foreign currency translation adjustments:
Net gain (loss)$163.4 $ 163.4 
Amounts reclassified   
Net gain (loss) recognized in other comprehensive income (loss)163.4  163.4 
Unrealized gain (loss) on cash flow hedges:
Net derivative gain (loss)86.4 (10.4)76.0 
Amounts reclassified(27.8)3.2 (24.6)
Net gain (loss) recognized in other comprehensive income (loss)58.6 (7.2)51.4 
Pension/postretirement adjustments:
Net actuarial gain (loss)(0.3)0.1 (0.2)
Amounts reclassified   
Net gain (loss) recognized in other comprehensive income (loss)(0.3)0.1 (0.2)
Share of OCI of equity method investments
Net gain (loss)(0.3)0.1 (0.2)
Amounts reclassified   
Net gain (loss) recognized in other comprehensive income (loss)(0.3)0.1 (0.2)
Other comprehensive income (loss) attributable to CBI$221.4 $(7.0)214.4 
Comprehensive income (loss) attributable to CBI$350.3 

Accumulated other comprehensive income (loss), net of income tax effect, includes the following components:
Foreign
Currency
Translation
Adjustments
Unrealized Net
Gain (Loss)
on Derivative
Instruments
Pension/
Postretirement
Adjustments
Share of OCI
of Equity
Method
Investments
Accumulated
Other
Comprehensive
Income (Loss)
(in millions)
Balance, February 29, 2024$102.9 $266.2 $(2.6)$10.3 $376.8 
Other comprehensive income (loss):
Other comprehensive income (loss) before reclassification adjustments13.5 24.9   38.4 
Amounts reclassified from accumulated other comprehensive income (loss) (37.1) (10.3)(47.4)
Other comprehensive income (loss)13.5 (12.2) (10.3)(9.0)
Balance, May 31, 2024$116.4 $254.0 $(2.6)$ $367.8 

13.    BUSINESS SEGMENT INFORMATION

Our internal management financial reporting consists of two business divisions: (i) Beer and (ii) Wine and Spirits and we report our operating results in three segments: (i) Beer, (ii) Wine and Spirits, and (iii) Corporate Operations and Other. In the Beer segment, our portfolio consists of high-end imported beer brands and ABAs. We have an exclusive perpetual brand license to produce our Mexican beer portfolio and to import, market, and sell such portfolio in the U.S. In the Wine and Spirits segment, we sell a portfolio that includes higher-end wine brands
Constellation Brands, Inc. Q1 FY 2025 Form 10-Q
#WORTHREACHINGFOR    I    17

FINANCIAL STATEMENTSNOTES TO CONSOLIDATED FINANCIAL STATEMENTS
complemented by certain higher-end spirits brands. Amounts included in the Corporate Operations and Other segment consist of costs of corporate development, corporate finance, corporate strategy, executive management, growth, human resources, internal audit, investor relations, IT, legal, and public relations, as well as our Canopy investment and investments made through our corporate venture capital function. All costs included in the Corporate Operations and Other segment are general costs that are applicable to the consolidated group and are, therefore, not allocated to the other reportable segments. All costs reported within the Corporate Operations and Other segment are not included in our CODM’s evaluation of the operating income (loss) performance of the other reportable segments. The business segments reflect how our operations are managed, how resources are allocated, how operating performance is evaluated by senior management, and the structure of our internal financial reporting. Long-lived tangible assets and total asset information by segment is not provided to, or reviewed by, our CODM as it is not used to make strategic decisions, allocate resources, or assess performance.

In addition, management excludes Comparable Adjustments from its evaluation of the results of each operating segment as these Comparable Adjustments are not reflective of core operations of the segments. Segment operating performance and the incentive compensation of segment management are evaluated based on core segment operating income (loss) which does not include the impact of these Comparable Adjustments.

We evaluate segment operating performance based on operating income (loss) of the respective business units. Comparable Adjustments that impacted comparability in our segment operating income (loss) for each period are as follows:
For the Three Months
Ended May 31,
20242023
(in millions)
Cost of product sold
Net gain (loss) on undesignated commodity derivative contracts$14.6 $(34.7)
Settlements of undesignated commodity derivative contracts8.5 0.6 
Flow through of inventory step-up(1.1)(0.7)
Comparable Adjustments, Cost of product sold22.0 (34.8)
Selling, general, and administrative expenses
Transition services agreements activity(2.8)(5.7)
Restructuring and other strategic business development costs(1.8)(14.9)
Transaction, integration, and other acquisition-related costs(0.2)(0.3)
Other gains (losses) (1)
0.4 (6.8)
Comparable Adjustments, Selling, general, and administrative expenses(4.4)(27.7)
Comparable Adjustments, Operating income (loss)$17.6 $(62.5)
(1)
Primarily includes the following:
For the Three Months
Ended May 31,
20242023
(in millions)
Gain (loss) on sale of business$ $(7.0)

Constellation Brands, Inc. Q1 FY 2025 Form 10-Q
#WORTHREACHINGFOR    I    18

FINANCIAL STATEMENTSNOTES TO CONSOLIDATED FINANCIAL STATEMENTS
The accounting policies of the segments are the same as those described for the Company in Note 1 of our consolidated financial statements included in our 2024 Annual Report. Segment information is as follows:
For the Three Months
Ended May 31,
20242023
(in millions)
Beer
Net sales$2,272.8 $2,098.6 
Segment operating income (loss)$923.0 $797.8 
Capital expenditures$314.4 $205.6 
Depreciation and amortization$86.4 $78.8 
Wine and Spirits
Net sales:
Wine$329.3 $361.0 
Spirits59.7 55.3 
Net sales$389.0 $416.3 
Segment operating income (loss)$59.7 $79.3 
Income (loss) from unconsolidated investments$0.4 $2.3 
Equity method investments$101.2 $96.8 
Capital expenditures$49.6 $38.6 
Depreciation and amortization$21.3 $22.5 
Corporate Operations and Other
Segment operating income (loss)$(58.7)$(49.9)
Income (loss) from unconsolidated investments$(1.7)$(33.3)
Equity method investments$25.7 $194.5 
Capital expenditures$11.3 $32.8 
Depreciation and amortization$4.2 $4.4 
Comparable Adjustments
Operating income (loss)$17.6 $(62.5)
Income (loss) from unconsolidated investments$83.3 $(384.4)
Consolidated
Net sales$2,661.8 $2,514.9 
Operating income (loss)$941.6 $764.7 
Income (loss) from unconsolidated investments (1)
$82.0 $(415.4)
Equity method investments$126.9 $291.3 
Capital expenditures$375.3 $277.0 
Depreciation and amortization$111.9 $105.7