Constellation Brands, Inc. Files 10-Q for Period Ending November 30, 2023

TL;DR

<b>Constellation Brands, Inc. filed its Q3 2023 10-Q report on January 5, 2024, detailing financial performance for the period ending November 30, 2023.</b>

AI Summary

CONSTELLATION BRANDS, INC. (STZ) filed a Quarterly Report (10-Q) with the SEC on January 5, 2024. Constellation Brands, Inc. filed a 10-Q report for the period ending November 30, 2023. The filing covers the third quarter of their fiscal year. The company's fiscal year ends on February 28th. The filing was made on January 5, 2024. The company's principal executive offices are located in Victor, NY.

Why It Matters

For investors and stakeholders tracking CONSTELLATION BRANDS, INC., this filing contains several important signals. This 10-Q filing provides investors with the latest financial statements and management's discussion of results for Constellation Brands, Inc. Understanding the details within this report is crucial for assessing the company's current financial health, operational performance, and future outlook.

Risk Assessment

Risk Level: medium — CONSTELLATION BRANDS, INC. shows moderate risk based on this filing. The filing is a standard quarterly report (10-Q), which typically contains routine financial information. However, the complexity of the beverage industry and potential market shifts introduce inherent risks.

Analyst Insight

Review the detailed financial statements and management's discussion within the 10-Q to understand Constellation Brands' performance and identify any emerging trends or risks.

Key Numbers

• 2023-11-30 — Reporting Period End Date (10-Q filing)
• 2024-01-05 — Filing Date (10-Q filing)
• 0228 — Fiscal Year End (Company fiscal calendar)

Key Players & Entities

• CONSTELLATION BRANDS, INC. (company) — Filer name
• STZ (company) — Ticker symbol
• Victor, NY (location) — Business address city and state

Forward-Looking Statements

• Constellation Brands will continue to maintain a stable share count for its Class A common stock in the near term. (CONSTELLATION BRANDS, INC.) — medium confidence, target: 2024-05-31

FAQ

Industry Context

Constellation Brands operates in the alcoholic beverage industry, a sector subject to consumer trends, regulatory changes, and competitive pressures.

Regulatory Implications

Companies in the beverage sector are subject to various regulations concerning production, distribution, marketing, and taxation of alcoholic products.

What Investors Should Do

1. Analyze the revenue and profitability trends presented in the 10-Q.
2. Examine any disclosed risks or uncertainties that could impact future performance.
3. Compare the reported financial metrics against previous periods and analyst expectations.

Key Dates

• 2023-11-30: Period End Date — End of the reporting quarter for the 10-Q filing.
• 2024-01-05: Filing Date — Date the 10-Q report was officially submitted to the SEC.

Year-Over-Year Comparison

This filing represents the quarterly update for the period ending November 30, 2023, following previous filings for the company.

Key Financial Figures

• $600.0 million — llars 3.20% February 2018 Senior Notes $600.0 million principal amount of 3.20% senior notes
• $1,050.0 million — o maturity 4.25% May 2013 Senior Notes $1,050.0 million principal amount of 4.25% senior notes
• $2.0 billion — orization authority to repurchase up to $2.0 billion of our publicly traded common stock, au
• $2.25 billion — aggregate revolving credit facility of $2.25 billion 2023 Annual Report our Annual Report
• $100.0 million — irectors 2023 Canopy Promissory Note C$100.0 million principal amount of 4.25% promissory no
• $491.3 m — at provided for aggregate facilities of $491.3 million, consisting of a five-year term l
• $1.0 billion — of August 9, 2022, that provided for a $1.0 billion unsecured delayed draw three-year term
• $0.01 — s 1 Convertible Common Stock, par value $0.01 per share Class A Stock our Class A Co
• $750.0 million — , acquired by us May 2023 Senior Notes $750.0 million aggregate principal amount of senior no

Filing Documents

• stz-20231130.htm (10-Q) — 2293KB
• stzex311_1130202310q.htm (EX-31.1) — 8KB
• stzex312_1130202310q.htm (EX-31.2) — 8KB
• stzex321_1130202310q.htm (EX-32.1) — 5KB
• stzex322_1130202310q.htm (EX-32.2) — 4KB
• stz-20231130_g1.jpg (GRAPHIC) — 113KB
• stz-20231130_g2.jpg (GRAPHIC) — 2330KB
• stz-20231130_g3.jpg (GRAPHIC) — 23KB
• stz-20231130_g4.jpg (GRAPHIC) — 41KB
• stz-20231130_g5.jpg (GRAPHIC) — 49KB
• stz-20231130_g6.jpg (GRAPHIC) — 53KB
• stz-20231130_g7.jpg (GRAPHIC) — 82KB
• 0000016918-24-000005.txt (&nbsp;) — 17348KB
• stz-20231130.xsd (EX-101.SCH) — 44KB
• stz-20231130_cal.xml (EX-101.CAL) — 99KB
• stz-20231130_def.xml (EX-101.DEF) — 358KB
• stz-20231130_lab.xml (EX-101.LAB) — 694KB
• stz-20231130_pre.xml (EX-101.PRE) — 503KB
• stz-20231130_htm.xml (XML) — 1959KB

– FINANCIAL INFORMATION

PART I – FINANCIAL INFORMATION

Financial Statements

Item 1. Financial Statements Consolidated Balance Sheets 1 Consolidated Statements of Comprehensive Income (Loss) 2 Consolidated Statements of Changes in Stockholders' Equity 3 Consolidated Statements of Cash Flows 5

Notes to Consolidated Financial Statements

Notes to Consolidated Financial Statements 1. Basis of Presentation 7 2. Inventories 7 3. Derivative Instruments 7 4. Fair Value of Financial Instruments 10 5. Goodwill 13 6. Intangible Assets 14 7. Equity Method Investments 15 8. Borrowings 16 9. Income Taxes 18 10. Stockholders' Equity 18 11. Net Income (Loss) Per Common Share Attributable to CBI 20 12. Comprehensive Income (Loss) Attributable to CBI 22 13. Business Segment Information 24 14. Subsequent Event 27

Management's Discussion and Analysis of Financial Condition and Results of Operations 28

Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations 28

Quantitative and Qualitative Disclosures About Market Risk 52

Item 3. Quantitative and Qualitative Disclosures About Market Risk 52

Controls and Procedures 53

Item 4. Controls and Procedures 53

– OTHER INFORMATION

PART II – OTHER INFORMATION

Legal Proceedings 54

Item 1. Legal Proceedings 54

Risk Factors 54

Item 1A. Risk Factors 54

Unregistered Sales of Equity Securities and Use of Proceeds 55

Item 2. Unregistered Sales of Equity Securities and Use of Proceeds 55

Other Information 55

Item 5. Other Information 55

Exhibits 56

Item 6. Exhibits 56 SIGNATURES 59 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 the Company ' s control, that 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. Table of Contents 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. Term Meaning $ U.S. dollars 3.20% February 2018 Senior Notes $600.0 million principal amount of 3.20% senior notes issued in February 2018, partially tendered in May 2022, and fully redeemed in June 2022, prior to maturity 4.25% May 2013 Senior Notes $1,050.0 million principal amount of 4.25% senior notes issued in May 2013, partially tendered in May 2022, and fully redeemed in June 2022, prior to maturity 2021 Authorization authority to repurchase up to $2.0 billion of our publicly traded common stock, authorized in January 2021 by our Board of Directors 2022 Credit Agreement tenth amended and restated credit agreement, dated as of April 14, 2022, that provides for an aggregate revolving credit facility of $2.25 billion 2023 Annual Report our Annual Report on Form 10-K for the fiscal year ended February 28, 2023 2023 Authorization authority to repurchase up to $2.0 billion of our publicly traded common stock, authorized in November 2023 by our Board of Directors 2023 Canopy Promissory Note C$100.0 million principal amount of 4.25% promisso

Financial Statements our consolidated financial statements and notes thereto included herein

Financial Statements our consolidated financial statements and notes thereto included herein Fiscal 2023 the Company's fiscal year ended February 28, 2023 Fiscal 2024 the Company's fiscal year ending February 29, 2024 Fiscal 2025 the Company's fiscal year ending February 28, 2025 Fiscal 2026 the Company's fiscal year ending February 28, 2026 Fiscal 2027 the Company's fiscal year ending February 28, 2027 Fiscal 2028 the Company's fiscal year ending February 29, 2028 Fiscal 2029 the Company's fiscal year ending February 28, 2029 Form 10-Q this Quarterly Report on Form 10-Q for the quarterly period ended November 30, 2023, unless otherwise specified Four Corners Divestiture sale of the Four Corners Brewing Company LLC business Funky Buddha Divestiture sale of the Funky Buddha Brewery LLC business GHG greenhouse gas IRA Inflation Reduction Act of 2022, signed into law in the U.S. on August 16, 2022 IT information technology Lingua Franca Lingua Franca, LLC business, acquired by us May 2023 Senior Notes $750.0 million aggregate principal amount of senior notes issued in May 2023 Constellation Brands, Inc. Q3 FY 2024 Form 10-Q #WORTHREACHINGFOR I ii Table of Contents Term Meaning 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 Mexico Beer Projects expansion, optimization, and/or construction activities at the Obregon Brewery, Nava Brewery, and Veracruz Brewery M&T Manufacturers and Traders Trust Company NA not applicable Nava Nava, Coahuila, Mexico Nava Brewery brewery located in Nava Net sales gross sales less promotions, returns and allowances, and excise taxes Nine Months 2023 the Company's nine months ended November 30, 2022 Nine Months 2024 the Company's nine months ended November 30, 2023 NM not meaningful Note(s) notes to the consolidated f

FINANCIAL STATEMENTS Table of Contents

FINANCIAL STATEMENTS Table of Contents

– FINANCIAL INFORMATION

PART I – FINANCIAL INFORMATION

Financial Statements

Item 1. Financial Statements. CONSTELLATION BRANDS, INC. AND SUBSIDIARIES CONSOLIDATED BALANCE SHEETS (in millions, except share and per share data) (unaudited) November 30, 2023 February 28, 2023 ASSETS Current assets: Cash and cash equivalents $ 78.7 $ 133.5 Accounts receivable 897.3 901.6 Inventories 1,988.0 1,898.7 Prepaid expenses and other 587.4 562.3 Total current assets 3,551.4 3,496.1 Property, plant, and equipment 7,713.5 6,865.2 Goodwill 7,978.2 7,925.4 Intangible assets 2,732.2 2,728.1 Equity method investments 233.3 663.3 Deferred income taxes 2,086.1 2,193.3 Other assets 762.7 790.9 Total assets $ 25,057.4 $ 24,662.3 LIABILITIES AND STOCKHOLDERS' EQUITY Current liabilities: Short-term borrowings $ 458.9 $ 1,165.3 Current maturities of long-term debt 957.3 9.5 Accounts payable 1,028.8 941.5 Other accrued expenses and liabilities 934.9 852.0 Total current liabilities 3,379.9 2,968.3 Long-term debt, less current maturities 10,282.3 11,286.5 Deferred income taxes and other liabilities 1,596.8 1,673.6 Total liabilities 15,259.0 15,928.4 Commitments and contingencies CBI stockholders' equity: Class A Stock, $ 0.01 par value – Authorized, 322,000,000 shares; Issued, 212,698,298 shares and 212,697,428 shares, respectively 2.1 2.1 Additional paid-in capital 2,019.2 1,903.0 Retained earnings 13,187.6 12,343.9 Accumulated other comprehensive income (loss) 364.4 28.5 15,573.3 14,277.5 Less: Treasury stock – Class A Stock, at cost, 29,905,366 shares and 29,498,426 shares, respectively ( 6,102.3 ) ( 5,863.9 ) Total CBI stockholders' equity 9,471.0 8,413.6 Noncontrolling interests 327.4 320.3 Total stockholders' equity 9,798.4 8,733.9 Total liabilities and stockholders' equity $ 25,057.4 $ 24,662.3 The accompanying notes are an integral part of these statements. Constellation Brands, Inc. Q3 FY 2024 Form 10-Q #WORTHREACHINGFOR I 1

FINANCIAL STATEMENTS Table of Contents

FINANCIAL STATEMENTS Table of Contents CONSTELLATION BRANDS, INC. AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) (in millions, except per share data) (unaudited) For the Nine Months Ended November 30, For the Three Months Ended November 30, 2023 2022 2023 2022 Sales $ 8,410.7 $ 8,029.6 $ 2,658.2 $ 2,624.6 Excise taxes ( 588.1 ) ( 574.8 ) ( 187.3 ) ( 188.1 ) Net sales 7,822.6 7,454.8 2,470.9 2,436.5 Cost of product sold ( 3,844.3 ) ( 3,647.0 ) ( 1,200.3 ) ( 1,209.6 ) Gross profit 3,978.3 3,807.8 1,270.6 1,226.9 Selling, general, and administrative expenses ( 1,438.0 ) ( 1,431.6 ) ( 473.7 ) ( 480.2 ) Operating income (loss) 2,540.3 2,376.2 796.9 746.7 Income (loss) from unconsolidated investments ( 477.4 ) ( 1,944.2 ) ( 41.8 ) ( 37.2 ) Interest expense ( 333.0 ) ( 281.5 ) ( 104.2 ) ( 98.7 ) Loss on extinguishment of debt ( 0.7 ) ( 23.3 ) — — Income (loss) before income taxes 1,729.2 127.2 650.9 610.8 (Provision for) benefit from income taxes ( 368.4 ) ( 388.9 ) ( 130.0 ) ( 131.1 ) Net income (loss) 1,360.8 ( 261.7 ) 520.9 479.7 Net (income) loss attributable to noncontrolling interests ( 25.8 ) ( 32.3 ) ( 11.8 ) ( 12.0 ) Net income (loss) attributable to CBI $ 1,335.0 $ ( 294.0 ) $ 509.1 $ 467.7 Comprehensive income (loss) $ 1,713.0 $ ( 32.8 ) $ 447.0 $ 643.1 Comprehensive (income) loss attributable to noncontrolling interests ( 42.1 ) ( 49.4 ) ( 7.9 ) ( 20.9 ) Comprehensive income (loss) attributable to CBI $ 1,670.9 $ ( 82.2 ) $ 439.1 $ 622.2 Net income (loss) per common share attributable to CBI: Basic – Class A Stock $ 7.28 $ ( 1.48 ) $ 2.77 $ 2.58 Basic – Class B Stock NA $ ( 2.01 ) NA $ 1.78 Diluted – Class A Stock $ 7.25 $ ( 1.48 ) $ 2.76 $ 2.52 Diluted – Class B Stock NA $ ( 2.01 ) NA $ 1.78 Weighted average common shares outstanding: Basic – Class A Stock 183.431 164.573 183.525 166.677 Basic – Class B Stock NA 23.206 NA 23.206 Diluted – Class A Stock 184.096 164.573 184.170 185.291 Diluted –

FINANCIAL STATEMENTS Table of Contents

FINANCIAL STATEMENTS Table of Contents 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 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 Comprehensive income (loss): Net income (loss) — — 690.0 — — 10.7 700.7 Other comprehensive income (loss), net of income tax effect — — — 191.5 — 9.3 200.8 Comprehensive income (loss) 901.5 Dividends declared — — ( 164.0 ) — — — ( 164.0 ) Noncontrolling interest distributions — — — — — ( 10.0 ) ( 10.0 ) Shares issued under equity compensation plans — 62.6 — — 7.6 — 70.2 Stock-based compensation — 18.1 — — — — 18.1 Balance at August 31, 2023 2.1 1,998.8 12,842.7 434.4 ( 5,887.2 ) 333.2 9,724.0 Comprehensive income (loss): Net income (loss) — — 509.1 — — 11.8 520.9 Other comprehensive income (loss), net of income tax effect — — — ( 70.0 ) — ( 3.9 ) ( 73.9 ) Comprehensive income (loss) 447.0 Repurchase of shares — — — — ( 214.7 ) — ( 214.7 ) Dividends declared — — ( 164.2 ) — — — ( 164.2 ) Noncontrolling interest distributions — — — — — ( 13.7 ) ( 13.7 ) Shares issued under equity compensation plans — 3.4 — — ( 0.4 ) — 3.0 Stock-based compensation — 17.0 — — — — 17.0 Balance at November 30

FINANCIAL STATEMENTS Table of Contents

FINANCIAL STATEMENTS Table of Contents CONSTELLATION BRANDS, INC. AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS' EQUITY (in millions) (unaudited) Stock Additional Paid-in Capital Retained Earnings Accumulated Other Comprehensive Income (Loss) Treasury Stock Non-controlling Interests Total Class A Class B Balance at February 28, 2022 $ 1.9 $ 0.3 $ 1,808.9 $ 14,505.4 $ ( 412.7 ) $ ( 4,171.9 ) $ 315.9 $ 12,047.8 Comprehensive income (loss): Net income (loss) — — — 389.5 — — 9.8 399.3 Other comprehensive income (loss), net of income tax effect — — — — 246.4 — 12.6 259.0 Comprehensive income (loss) 658.3 Repurchase of shares — — — — — ( 1,007.6 ) — ( 1,007.6 ) Dividends declared — — — ( 148.7 ) — — — ( 148.7 ) Noncontrolling interest distributions — — — — — — ( 11.2 ) ( 11.2 ) Shares issued under equity compensation plans — — ( 0.6 ) — — 3.8 — 3.2 Stock-based compensation — — 16.7 — — — — 16.7 Balance at May 31, 2022 1.9 0.3 1,825.0 14,746.2 ( 166.3 ) ( 5,175.7 ) 327.1 11,558.5 Comprehensive income (loss): Net income (loss) — — — ( 1,151.2 ) — — 10.5 ( 1,140.7 ) Other comprehensive income (loss), net of income tax effect — — — — ( 189.1 ) — ( 4.4 ) ( 193.5 ) Comprehensive income (loss) ( 1,334.2 ) Repurchase of shares — — — — — ( 392.9 ) — ( 392.9 ) Dividends declared — — — ( 146.6 ) — — — ( 146.6 ) Noncontrolling interest distributions — — — — — — ( 11.3 ) ( 11.3 ) Shares issued under equity compensation plans — — 14.5 — — 2.0 — 16.5 Stock-based compensation — — 20.9 — — — — 20.9 Balance at August 31, 2022 1.9 0.3 1,860.4 13,448.4 ( 355.4 ) ( 5,566.6 ) 321.9 9,710.9 Comprehensive income (loss): Net income (loss) — — — 467.7 — — 12.0 479.7 Other comprehensive income (loss), net of income tax effect — — — — 154.5 — 8.9 163.4 Comprehensive income (loss) 643.1 Reclassification payment — — — ( 1,500.0 ) — — — ( 1,500.0 ) Retirement of treasury shares — ( 0.1 ) — ( 2.2 ) — 2.3 — — Conversion of common shares 0.2 ( 0

FINANCIAL STATEMENTS Table of Contents

FINANCIAL STATEMENTS Table of Contents CONSTELLATION BRANDS, INC. AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF CASH FLOWS (in millions) (unaudited) For the Nine Months Ended November 30, 2023 2022 CASH FLOWS FROM OPERATING ACTIVITIES Net income (loss) $ 1,360.8 $ ( 261.7 ) 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 85.4 39.1 Deferred tax provision (benefit) 28.2 218.4 Depreciation 321.8 278.4 Stock-based compensation 49.5 56.1 Equity in (earnings) losses of equity method investees and related activities, net of distributed earnings 257.3 845.4 Noncash lease expense 62.9 66.7 Amortization of debt issuance costs and loss on extinguishment of debt 8.9 31.1 Impairment of equity method investments 136.1 1,060.3 (Gain) loss on sale of business 15.1 ( 13.8 ) Gain (loss) on settlement of Pre-issuance hedge contracts 1.4 20.7 Change in operating assets and liabilities, net of effects from purchase and sale of business: Accounts receivable 6.9 ( 25.3 ) Inventories ( 90.4 ) ( 259.3 ) Prepaid expenses and other current assets ( 49.1 ) 204.7 Accounts payable 24.5 187.4 Other accrued expenses and liabilities 37.1 ( 247.0 ) Other 90.4 79.4 Total adjustments 986.0 2,542.3 Net cash provided by (used in) operating activities 2,346.8 2,280.6 CASH FLOWS FROM INVESTING ACTIVITIES Purchase of property, plant, and equipment ( 911.9 ) ( 683.8 ) Purchase of business, net of cash acquired ( 7.5 ) ( 37.1 ) Investments in equity method investees and securities ( 34.6 ) ( 29.5 ) Proceeds from sale of assets 21.8 6.6 Proceeds from sale of business 5.4 96.7 Other investing activities ( 3.1 ) 0.5 Net cash provided by (used in) investing activities ( 929.9 ) ( 646.6 ) Constellation Brands, Inc. Q3 FY 2024 Form 10-Q #WORTHREACHINGFOR I 5

FINANCIAL STATEMENTS Table of Contents

FINANCIAL STATEMENTS Table of Contents CONSTELLATION BRANDS, INC. AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF CASH FLOWS (in millions) (unaudited) For the Nine Months Ended November 30, 2023 2022 CASH FLOWS FROM FINANCING ACTIVITIES Proceeds from issuance of long-term debt 744.8 2,845.8 Principal payments of long-term debt ( 807.5 ) ( 1,657.3 ) Net proceeds from (repayments of) short-term borrowings ( 706.4 ) 552.6 Dividends paid ( 491.1 ) ( 441.1 ) Purchases of treasury stock ( 249.7 ) ( 1,400.5 ) Proceeds from shares issued under equity compensation plans 89.0 36.7 Payments of minimum tax withholdings on stock-based payment awards ( 11.2 ) ( 10.5 ) Payments of debt issuance, debt extinguishment, and other financing costs ( 5.3 ) ( 34.1 ) Distributions to noncontrolling interests ( 35.0 ) ( 37.5 ) Payment to holders of Class B Stock in connection with the Reclassification — ( 1,500.0 ) Net cash provided by (used in) financing activities ( 1,472.4 ) ( 1,645.9 ) Effect of exchange rate changes on cash and cash equivalents 0.7 ( 2.5 ) Net increase (decrease) in cash and cash equivalents ( 54.8 ) ( 14.4 ) Cash and cash equivalents, beginning of period 133.5 199.4 Cash and cash equivalents, end of period $ 78.7 $ 185.0 Supplemental disclosures of noncash investing and financing activities Additions to property, plant, and equipment $ 178.1 $ 174.6 The accompanying notes are an integral part of these statements. Constellation Brands, Inc. Q3 FY 2024 Form 10-Q #WORTHREACHINGFOR I 6

FINANCIAL STATEMENTS NOTES TO CONSOLIDATED FINANCIAL STATEMENTS Table of Contents

FINANCIAL STATEMENTS NOTES TO CONSOLIDATED FINANCIAL STATEMENTS Table of Contents CONSTELLATION BRANDS, INC. AND SUBSIDIARIES NOVEMBER 30, 2023 (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 2023 Annual Report. Results of operations for interim periods are not necessarily indicative of annual results. Effective May 31, 2023, we changed our internal management financial reporting to consist of two business divisions: (i) Beer and (ii) Wine and Spirits and we now report our operating results in three segments: (i) Beer, (ii) Wine and Spirits, and (iii) Corporate Operations and Other following the removal of the Canopy operating segment. All financial information for the nine months and three months ended November 30, 2022, has been restated to conform to the new segment presentation. For additional information, refer to Note 13. 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: November 30, 2023 February 28, 2023 (in millions) Raw materials and supplies $ 244.0 $ 245.5 In-process inventories 1,098.9 967.8 Finished case goods 645.1 685.4 $ 1,988.0 $ 1,898.7 3. DERIVATIVE INSTRUMENTS Overview Our risk ma

FINANCIAL STATEMENTS NOTES TO CONSOLIDATED FIN

FINANCIAL STATEMENTS NOTES TO CONSOLIDATED FIN

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