Constellation Brands, Inc. 10-Q Filing

FAQ

Key Financial Figures

• $2.0 billion — ation authorization to repurchase up to $2.0 billion of our publicly traded common stock, ap
• $2.25 b — aggregate revolving credit facility of $2.25 billion, inclusive of October 2022 Credit
• $100.0 million — mber 2023 2023 Canopy Promissory Note C$100.0 million principal amount of 4.25% promissory no
• $550.0 million — 29, 2024 3.60% May 2022 Senior Notes $550.0 million principal amount of 3.60% senior notes
• $400.0 million — lers 4.75% November 2014 Senior Notes $400.0 million principal amount of 4.75% senior notes
• $0.01 — s 1 Convertible Common Stock, par value $0.01 per share Class A Stock our Class A Co

Filing Documents

• stz-20241130.htm (10-Q) — 2061KB
• stzex101_1130202410q.htm (EX-10.1) — 83KB
• stzex311_1130202410q.htm (EX-31.1) — 8KB
• stzex312_1130202410q.htm (EX-31.2) — 8KB
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– 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. Other Assets 15 8. Borrowings 16 9. Income Taxes 17 10. Deferred Income Taxes and Other Liabilities 18 11. Stockholders' Equity 18 12. Net Income (Loss) Per Common Share Attributable to CBI 20 13. Comprehensive Income (Loss) Attributable to CBI 21 14. Business Segment Information 23 15. Accounting Guidance Not Yet Adopted 26

Management's Discussion and Analysis of Financial Condition and Results of Operations 27

Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations 27

Quantitative and Qualitative Disclosures About Market Risk 49

Item 3. Quantitative and Qualitative Disclosures About Market Risk 49

Controls and Procedures 50

Item 4. Controls and Procedures 50

– OTHER INFORMATION

PART II – OTHER INFORMATION

Legal Proceedings 51

Item 1. Legal Proceedings 51

Risk Factors 51

Item 1A. Risk Factors 51

Unregistered Sales of Equity Securities and Use of Proceeds 52

Item 2. Unregistered Sales of Equity Securities and Use of Proceeds 52

Other Information 52

Item 5. Other Information 52

Exhibits 53

Item 6. Exhibits 53 SIGNATURES 56 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. 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 10b5-1 Trading Plan a pre-arranged trading plan intended to satisfy the affirmative defense conditions of Rule 10b5-1(c) of the Exchange Act 2021 Authorization authorization to repurchase up to $2.0 billion of our publicly traded common stock, approved by our Board of Directors in January 2021 and fully utilized in November 2024 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, inclusive of October 2022 Credit Agreement Amendment 2023 Authorization authorization 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 Note C$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 amo

Financial Statements our consolidated financial statements and notes thereto included herein

Financial Statements our consolidated financial statements and notes thereto included herein Fiscal 2024 the Company's fiscal year ended 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 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 November 30, 2024, unless otherwise specified Four Corners Divestiture sale of the Four Corners craft beer business Funky Buddha Divestiture sale of the Funky Buddha craft beer business GHG greenhouse gas IRA Inflation Reduction Act of 2022 IT information 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, sold the remaining assets classified as held for sale in July 2024 Mexico Beer Projects expansion, optimization, and/or construction activities at the Obregn Brewery, Nava Brewery, and Veracruz Brewery M&T Manufacturers and Traders Trust Company Nava Nava, Coahuila, Mexico Nava Brewery brewery located in Nava Nelson's Green Brier Nelson's Green Brier craft spirits business, fully owned by us Net sales gross sales less promotions, returns and allowances, and excise taxes Net Shares Received the quantity of Class A Stock received by an individual net of shares withheld by us to satisfy taxes in connection with the net settlement of equity awards Nine Months 2024 the Company's nine months ended November 30, 2023 Nine Months 2025 the Company's nine months ended November 30, 2024 NM not meaningful Note(s) notes to the consolidated financial sta

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, 2024 February 29, 2024 ASSETS Current assets: Cash and cash equivalents $ 73.7 $ 152.4 Accounts receivable 836.2 832.8 Inventories 2,129.6 2,078.3 Prepaid expenses and other 590.0 666.0 Total current assets 3,629.5 3,729.5 Property, plant, and equipment 7,785.3 8,055.2 Goodwill 5,612.4 7,980.3 Intangible assets 2,718.2 2,731.7 Deferred income taxes 1,914.7 2,055.0 Other assets 1,146.1 1,140.0 Total assets $ 22,806.2 $ 25,691.7 LIABILITIES AND STOCKHOLDERS' EQUITY Current liabilities: Short-term borrowings $ 890.1 $ 241.4 Current maturities of long-term debt 503.3 956.8 Accounts payable 1,055.9 1,107.1 Other accrued expenses and liabilities 839.7 836.4 Total current liabilities 3,289.0 3,141.7 Long-term debt, less current maturities 10,185.7 10,681.1 Deferred income taxes and other liabilities 1,259.8 1,804.3 Total liabilities 14,734.5 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 capital 2,132.7 2,047.3 Retained earnings 13,159.7 13,417.2 Accumulated other comprehensive income (loss) ( 724.7 ) 376.8 Class A Stock in treasury, at cost, 31,994,945 shares and 29,809,881 shares, respectively ( 6,752.0 ) ( 6,100.3 ) Total CBI stockholders' equity 7,817.8 9,743.1 Noncontrolling interests 253.9 321.5 Total stockholders' equity 8,071.7 10,064.6 Total liabilities and stockholders' equity $ 22,806.2 $ 25,691.7 The accompanying notes are an integral part of these statements. Constellation Brands, Inc. Q3 FY 2025 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, 2024 2023 2024 2023 Sales $ 8,644.2 $ 8,410.7 $ 2,644.4 $ 2,658.2 Excise taxes ( 599.7 ) ( 588.1 ) ( 180.6 ) ( 187.3 ) Net sales 8,044.5 7,822.6 2,463.8 2,470.9 Cost of product sold ( 3,844.6 ) ( 3,844.3 ) ( 1,179.5 ) ( 1,200.3 ) Gross profit 4,199.9 3,978.3 1,284.3 1,270.6 Selling, general, and administrative expenses ( 1,444.7 ) ( 1,438.0 ) ( 491.3 ) ( 473.7 ) Goodwill impairment ( 2,250.0 ) — — — Operating income (loss) 505.2 2,540.3 793.0 796.9 Income (loss) from unconsolidated investments 65.8 ( 477.4 ) ( 15.0 ) ( 41.8 ) Interest expense, net ( 311.2 ) ( 333.7 ) ( 104.4 ) ( 104.2 ) Income (loss) before income taxes 259.8 1,729.2 673.6 650.9 (Provision for) benefit from income taxes 79.7 ( 368.4 ) ( 44.5 ) ( 130.0 ) Net income (loss) 339.5 1,360.8 629.1 520.9 Net (income) loss attributable to noncontrolling interests ( 45.6 ) ( 25.8 ) ( 13.2 ) ( 11.8 ) Net income (loss) attributable to CBI $ 293.9 $ 1,335.0 $ 615.9 $ 509.1 Comprehensive income (loss) $ ( 810.4 ) $ 1,713.0 $ 319.3 $ 447.0 Comprehensive (income) loss attributable to noncontrolling interests 2.8 ( 42.1 ) ( 1.1 ) ( 7.9 ) Comprehensive income (loss) attributable to CBI $ ( 807.6 ) $ 1,670.9 $ 318.2 $ 439.1 Class A Stock: Net income (loss) per common share attributable to CBI – basic $ 1.61 $ 7.28 $ 3.40 $ 2.77 Net income (loss) per common share attributable to CBI – diluted $ 1.61 $ 7.25 $ 3.39 $ 2.76 Weighted average common shares outstanding – basic 181.988 183.431 181.243 183.525 Weighted average common shares outstanding – diluted 182.555 184.096 181.753 184.170 Cash dividends declared per common share $ 3.03 $ 2.67 $ 1.01 $ 0.89 The accompanying notes are an integral part of these statem

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 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 ) Noncontrolling 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 Comprehensive income (loss): Net income (loss) — — ( 1,199.0 ) — — 16.6 ( 1,182.4 ) Other comprehensive income (loss), net of income tax effect — — — ( 794.8 ) — ( 36.6 ) ( 831.4 ) Comprehensive income (loss) ( 2,013.8 ) Repurchase of shares — — — — ( 249.2 ) — ( 249.2 ) Dividends declared — — ( 183.3 ) — — — ( 183.3 ) Noncontrolling interest distributions — — — — — ( 15.0 ) ( 15.0 ) Shares issued under equity compensation plans — 21.2 — — 0.4 — 21.6 Stock-based compensation — 23.7 — — — — 23.7 Balance at August 31, 2024 2.1 2,115.2 12,727.2 ( 427.0 ) ( 6,546.7 ) 285.1 8,155.9 Comprehensive income (loss): Net income (loss) — — 615.9 — — 13.2 629.1 Other comprehensive income (loss), net of income tax effect — — — ( 297.7 ) — ( 12.1 ) ( 309.8 ) Comprehensive income (loss) 319.3 Repurchase of shares — — — — ( 218.9 ) — ( 218.9 ) Dividends declared — — ( 183.4 ) — — — ( 183.4 ) Noncontrolling interest distributions — — — — — ( 15.0 ) ( 15.0 ) Shares issued under equity compensati

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 CASH FLOWS (in millions) (unaudited) For the Nine Months Ended November 30, 2024 2023 CASH FLOWS FROM OPERATING ACTIVITIES Net income (loss) $ 339.5 $ 1,360.8 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 2.5 85.4 Deferred tax provision (benefit) ( 184.2 ) 28.2 Depreciation 339.8 321.8 Stock-based compensation 60.7 49.5 Equity in (earnings) losses of equity method investees and related activities, net of distributed earnings ( 25.8 ) 257.3 Noncash lease expense 85.2 62.9 Impairment of equity method investments 2.4 136.1 Net gain in connection with Exchangeable Shares ( 44.7 ) — Goodwill impairment 2,250.0 — Change in operating assets and liabilities, net of effects from purchase and sale of business: Accounts receivable ( 7.7 ) 6.9 Inventories ( 54.2 ) ( 90.4 ) Prepaid expenses and other current assets ( 47.2 ) ( 49.1 ) Accounts payable 117.4 24.5 Other accrued expenses and liabilities ( 117.4 ) 37.1 Other ( 158.8 ) 115.8 Total adjustments 2,218.0 986.0 Net cash provided by (used in) operating activities 2,557.5 2,346.8 CASH FLOWS FROM INVESTING ACTIVITIES Purchase of property, plant, and equipment ( 931.5 ) ( 911.9 ) Purchase of business, net of cash acquired ( 158.7 ) ( 7.5 ) Investments in equity method investees and securities ( 31.1 ) ( 34.6 ) Proceeds from sale of assets 34.8 21.8 Proceeds from sale of business — 5.4 Other investing activities ( 11.7 ) ( 3.1 ) Net cash provided by (used in) investing activities ( 1,098.2 ) ( 929.9 ) Constellation Brands, Inc. Q3 FY 2025 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, 2024 2023 CASH FLOWS FROM FINANCING ACTIVITIES Proceeds from issuance of long-term debt — 744.8 Principal payments of long-term debt ( 956.0 ) ( 807.5 ) Net proceeds from (repayments of) short-term borrowings 648.7 ( 706.4 ) Dividends paid ( 551.3 ) ( 491.1 ) Purchases of treasury stock ( 668.1 ) ( 249.7 ) Proceeds from shares issued under equity compensation plans 66.2 89.0 Payments of minimum tax withholdings on stock-based payment awards ( 13.8 ) ( 11.2 ) Payments of debt issuance, debt extinguishment, and other financing costs ( 0.1 ) ( 5.3 ) Distributions to noncontrolling interests ( 47.5 ) ( 35.0 ) Payment of contingent consideration ( 0.7 ) — Purchase of noncontrolling interest ( 16.2 ) — Net cash provided by (used in) financing activities ( 1,538.8 ) ( 1,472.4 ) Effect of exchange rate changes on cash and cash equivalents 0.8 0.7 Net increase (decrease) in cash and cash equivalents ( 78.7 ) ( 54.8 ) Cash and cash equivalents, beginning of period 152.4 133.5 Cash and cash equivalents, end of period $ 73.7 $ 78.7 Supplemental disclosures of noncash investing and financing activities Additions to property, plant, and equipment $ 111.3 $ 178.1 Purchase of noncontrolling interest $ 9.2 $ — The accompanying notes are an integral part of these statements. Constellation Brands, Inc. Q3 FY 2025 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, 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: November 30, 2024 February 29, 2024 (in millions) Raw materials and supplies $ 244.8 $ 254.1 In-process inventories 1,198.9 1,096.0 Finished case goods 685.9 728.2 $ 2,129.6 $ 2,078.3 The inventories balance at November 30, 2024, exclude amounts reclassified to assets held for sale. See Notes 5 and 7 for further discussion. 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 nine months and th

FINANCIAL STATEMENTS NOTES TO CONSOLIDATED FINANCIAL STATEMENTS Table of Contents

FINANCIAL STATEMENTS NOTES TO CONSOLIDATED FINANCIAL STATEMENTS Table of Contents The aggregate notional value of outstanding derivative instruments is as follows: November 30, 2024 February 29, 2024 (in millions) Derivative instruments designated as hedging instruments Foreign currency contracts $ 2,854.4 $ 2,045.6 Pre-issuance hedge contracts $ 75.0 $ — Derivative instruments not designated as hedging instruments Foreign currency contracts $ 448.9 $ 735.9 Commodity derivative contracts $ 337.9 $ 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 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 November 30, 2024, the estimated fair value of derivative instruments in a net liability position due to counterparties was $ 60.1 million. If we were required to settle the net liability position under these derivative instruments on November 30, 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): Assets Liabilities November 30, 2024 February 29, 2024 November 30, 2024 February 29, 2024 (in millions) Derivative instruments designated as hedging instruments Foreign currency contracts: Prepaid expe

FINANCIAL STATEMENTS NOTES TO CONSOLIDATED FINANCIAL STATEMENTS Table of Contents

FINANCIAL STATEMENTS NOTES TO CONSOLIDATED FINANCIAL STATEMENTS Table of Contents Assets Liabilities November 30, 2024 February 29, 2024 November 30, 2024 February 29, 2024 (in millions) Derivative instruments not designated as hedging instruments Foreign currency contracts: Prepaid expenses and other $ 1.0 $ 3.6 Other accrued expenses and liabilities $ 0.9 $ 1.7 Commodity derivative contracts: Prepaid expenses and other $ 5.7 $ 4.8 Other accrued expenses and liabilities $ 18.7 $ 27.9 Other assets $ 3.2 $ 1.4 Deferred income taxes and other liabilities $ 6.1 $ 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 Gai

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