(Mark One) | |||||
☒ | ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
☐ | TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
Delaware | 16-0716709 | ||||
(State or other jurisdiction of incorporation or organization) | (I.R.S. Employer Identification No.) |
Title of Each Class | Trading Symbol(s) | Name of Each Exchange on Which Registered | ||||||
Class A Common Stock | STZ | New York Stock Exchange | ||||||
Class B Common Stock | STZ.B | New York Stock Exchange |
Large Accelerated Filer | ☒ | Accelerated filer |
☐
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Non-accelerated filer |
☐
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Smaller reporting company |
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Emerging growth company |
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Page | ||||||||
FORWARD-LOOKING STATEMENTS | ||||||||
DEFINED TERMS | ||||||||
PART I | ||||||||
Item 1. | Business | |||||||
Item 1A. | Risk Factors | |||||||
Item 1B. | Unresolved Staff Comments | NA | ||||||
Item 2. | Properties | |||||||
Item 3. | Legal Proceedings | |||||||
Item 4. | Mine Safety Disclosures | NA | ||||||
PART II | ||||||||
Item 5. | Market for Registrant’s Common Equity, Related Stockholder Matters, and Issuer Purchases of Equity Securities | |||||||
Item 6. | Selected Financial Data | NA | ||||||
Item 7. | Management’s Discussion and Analysis of Financial Condition and Results of Operations | |||||||
Item 7A. | Quantitative and Qualitative Disclosures About Market Risk | |||||||
Item 8. | Financial Statements and Supplementary Data | |||||||
Item 9. | Changes in and Disagreements With Accountants on Accounting and Financial Disclosure | NA | ||||||
Item 9A. | Controls and Procedures | |||||||
Item 9B. | Other Information | NA | ||||||
PART III | ||||||||
Item 10. | Directors, Executive Officers, and Corporate Governance | |||||||
Item 11. | Executive Compensation | |||||||
Item 12. | Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters | |||||||
Item 13. | Certain Relationships and Related Transactions, and Director Independence | |||||||
Item 14. | Principal Accounting Fees and Services | |||||||
PART IV | ||||||||
Item 15. | Exhibits, Financial Statement Schedules | |||||||
Item 16. | Form 10-K Summary | |||||||
SIGNATURES |
Constellation Brands, Inc. FY 2021 Form 10-K |
#WORTHREACHINGFOR I i
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Constellation Brands, Inc. FY 2021 Form 10-K |
#WORTHREACHINGFOR I ii
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Term | Meaning | |||||||
$ | U.S. dollars | |||||||
2018 Authorization | authority to repurchase up to $3.0 billion of our Class A Common Stock and Class B Convertible Common Stock, authorized in January 2018 by our Board of Directors | |||||||
2018 Credit Agreement | eighth amended and restated credit agreement, dated as of September 14, 2018, now superseded by the 2020 Credit Agreement | |||||||
2018 Restatement Agreement | restatement agreement, dated as of September 14, 2018, that amended and restated the August 2018 Credit Agreement | |||||||
2019 Five-Year Term Facility | a $491.3 million, five-year term loan facility under the March 2020 Term Credit Agreement, originally entered into in June 2019 | |||||||
2019 Term Credit Agreement | a term loan credit agreement, dated as of June 28, 2019, that provided for aggregate facilities of $491.3 million, consisting of the 2019 Five-Year Term Facility | |||||||
2020 Credit Agreement | ninth amended and restated credit agreement, dated as of March 26, 2020, provides for an aggregate revolving credit facility of $2.0 billion | |||||||
2020 Restatement Agreement | restatement agreement, dated as of March 26, 2020, that amended and restated the 2018 Credit Agreement | |||||||
2020 Term Credit Agreement | amended and restated Term Credit Agreement, dated as of March 26, 2020 | |||||||
2020 Term Loan Restatement Agreement | restatement agreement, dated March 26, 2020, that amended and restated the 2019 Term Credit Agreement, resulting in the March 2020 Term Credit Agreement | |||||||
2020 U.S. wildfires | significant wildfires that broke out in California, Oregon, and Washington states which affected the 2020 U.S. grape harvest | |||||||
2021 Authorization | authority to repurchase up to $2.0 billion of our Class A Common Stock and Class B Convertible Common Stock, authorized in January 2021 by our Board of Directors | |||||||
ABA | alternative beverage alcohol | |||||||
Accolade Wine Investment | our remaining interest in our previously-owned Australian and European business | |||||||
Acreage | Acreage Holdings, Inc. | |||||||
Acreage Financial Instrument | a call option for Canopy Growth Corporation to acquire 100% of the shares of Acreage Holdings Inc., superseded by the New Acreage Financial Instrument | |||||||
Acreage Transaction | Canopy Growth Corporation’s intention to acquire Acreage Holdings, Inc. upon U.S. federal cannabis legalization, subject to certain conditions | |||||||
Administrative Agent | Bank of America, N.A., as administrative agent for applicable senior credit facilities and term credit agreements | |||||||
AFS | available-for-sale | |||||||
AOCI | accumulated other comprehensive income (loss) | |||||||
August 2018 Credit Agreement | seventh amended and restated credit agreement, dated as of August 10, 2018, now superseded by the 2018 Credit Agreement and the 2020 Credit Agreement | |||||||
August 2018 Restatement Agreement | restatement agreement, dated as of August 10, 2018, that amended and restated our sixth amended and restated credit agreement, dated as of July 14, 2017, which was our then-existing senior credit facility | |||||||
Ballast Point Divestiture | sale of Ballast Point craft beer business, including a number of its associated production facilities and brewpubs |
Constellation Brands, Inc. FY 2021 Form 10-K |
#WORTHREACHINGFOR I iii
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Term | Meaning | |||||||
Black Velvet Divestiture
|
sale of Black Velvet Canadian Whisky business and the brand’s associated production facility, along with a subset of Canadian whisky brands produced at that facility, and related inventory
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Booker Vineyard | My Favorite Neighbor, LLC, also known as Booker Vineyard, a super-luxury, direct-to-consumer focused wine business, we made an investment in My Favorite Neighbor, LLC | |||||||
BRGs | business resource groups | |||||||
C$ | Canadian dollars | |||||||
Canopy |
Canopy Growth Corporation
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Canopy Debt Securities | convertible debt securities issued by Canopy Growth Corporation | |||||||
Canopy Equity Method Investment |
November 2017 Canopy Investment, November 2018 Canopy Investment, and May 2020 Canopy Investment, collectively
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CARES Act | Coronavirus Aid, Relief, and Economic Security Act | |||||||
CB International
|
CB International Finance S.à r.l., a wholly-owned subsidiary of ours
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CDC | Centers for Disease Control | |||||||
CIH
|
CIH International S.à r.l., a wholly-owned subsidiary of ours
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CODM | chief operating decision maker | |||||||
Comparable Adjustments | certain items affecting comparability that have been excluded by management | |||||||
Concentrate Business Divestiture
|
sale of certain brands used in our concentrates and high-color concentrate business, and certain intellectual property, inventory, goodwill, interests in certain contracts, and assets of our concentrates and high-color concentrate business
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Copper & Kings |
Copper & Kings American Brandy Company, acquired by us
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CPG | consumer packaged goods | |||||||
Crown | Crown Imports LLC, a wholly-owned subsidiary of ours | |||||||
CSR | corporate social responsibility | |||||||
DE&I | diversity, equity, and inclusion | |||||||
Gallo | E. & J. Gallo Winery | |||||||
EHS | Environmental, Health, & Safety | |||||||
Empathy Wines |
Empathy Wines business, including a digitally-native wine brand, acquired by us
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Employee Stock Purchase Plan | the Company’s employee stock purchase plan, established in 1989, under which 9,000,000 shares of Class A Common Stock may be issued | |||||||
ERP | enterprise resource planning system | |||||||
ESG | environmental, social, and governance | |||||||
FASB | Financial Accounting Standards Board | |||||||
Fiscal 2019 |
the Company’s fiscal year ended February 28, 2019
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Fiscal 2020 |
the Company’s fiscal year ended February 29, 2020
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Fiscal 2021 |
the Company’s fiscal year ended February 28, 2021
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Fiscal 2022 |
the Company’s fiscal year ending February 28, 2022
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Fiscal 2023 | the Company’s fiscal year ending 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 | |||||||
Five-Year Term Facility | a $1.0 billion five-year term loan facility, now under the 2020 Term Credit Agreement | |||||||
Form 10-K |
this Annual Report on Form 10-K for the fiscal year ended February 28, 2021 unless otherwise specified
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Four Corners | Four Corners Brewing Company LLC | |||||||
GILTI | global intangible low-taxed income |
Constellation Brands, Inc. FY 2021 Form 10-K |
#WORTHREACHINGFOR I iv
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Term | Meaning | |||||||
Incremental Facilities | one or more tranches of additional term loans under our senior credit facility | |||||||
June 2019 Warrant Modification | June 2019 modification of the terms of the warrants and certain other rights originally obtained in November 2018 which gave us the option to purchase 139.7 million common shares of Canopy Growth Corporation | |||||||
June 2019 Warrant Modification Loss | our share of Canopy Growth Corporation’s additional loss resulting from the June 2019 Warrant Modification | |||||||
Lender | Bank of America, N.A., as lender for each applicable term credit agreement | |||||||
LIBOR | London Interbank Offered Rate | |||||||
Long-Term Stock Incentive Plan | a stockholder-approved omnibus incentive plan that provides the ability to grant various types of equity and cash awards to eligible plan participants | |||||||
March 2020 Term Credit Agreement | amended and restated 2019 Term Credit Agreement, dated as of March 26, 2020 | |||||||
May 2020 Canopy Investment | May 2020 exercise of the November 2017 Canopy Warrants at an exercise price of C$12.98 per warrant share | |||||||
MD&A | Management’s Discussion and Analysis of Financial Condition and Results of Operations under Item 7. of this Annual Report on Form 10-K | |||||||
Mexicali Brewery
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brewery located in Mexicali, Baja California, Mexico
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Mexico Beer Projects | expansion activities at the Obregon Brewery and Nava Brewery | |||||||
Mission Bell |
Mission Bell Winery in Madera, California
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NA | not applicable | |||||||
Nasdaq | The Nasdaq Global Select Market | |||||||
Nava Brewery | brewery located in Nava, Coahuila, Mexico | |||||||
Nelson’s Green Brier | Nelson’s Green Brier Distillery, LLC, acquired by us | |||||||
Net sales | gross sales less promotions, returns and allowances, and excise taxes | |||||||
New Acreage Agreement | modification of the Acreage Transaction and related Acreage Financial Instrument | |||||||
New Acreage Financial Instrument | a call option for Canopy Growth Corporation to acquire 70% of the shares of Acreage Holdings Inc. at a fixed exchange ratio and 30% at a floating exchange ratio | |||||||
NM | not meaningful | |||||||
Nobilo Wine Divestiture |
sale of New Zealand-based Nobilo Wine brand and certain related assets
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Note(s) | Notes to the Consolidated Financial Statements under Item 8 of this Annual Report on Form 10-K | |||||||
November 2017 Canopy Investment | our initial investment for 18.9 million common shares of Canopy Growth Corporation | |||||||
November 2017 Canopy Warrants | warrants which gave us the option to purchase 18.9 million common shares of Canopy Growth Corporation, exercised May 1, 2020 | |||||||
November 2018 Canopy Investment | our incremental investment for 104.5 million common shares of Canopy Growth Corporation | |||||||
November 2018 Canopy Transaction |
November 2018 Canopy Investment and the purchase by us of the November 2018 Canopy Warrants, collectively
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November 2018 Canopy Warrants | Tranche A Warrants, Tranche B Warrants, and Tranche C Warrants, collectively | |||||||
NPD | new product development | |||||||
NYSE |
New York Stock Exchange®
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Obregon Brewery
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brewery located in Obregon, Sonora, Mexico
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OCI | other comprehensive income (loss) | |||||||
Owens-Illinois | the company with which we have an equally-owned joint venture to operate a glass plant in Nava, Coahuila, Mexico | |||||||
Paul Masson Divestiture |
sale of Paul Masson Grande Amber Brandy brand, related inventory, and interests in certain contracts
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Constellation Brands, Inc. FY 2021 Form 10-K |
#WORTHREACHINGFOR I v
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Term | Meaning | |||||||
PET | polyethylene terephthalate | |||||||
RIV Capital
|
RIV Capital Inc. (formerly Canopy Rivers Inc.)
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RIV Capital Divestiture
|
Canopy Growth Corporation sold its ownership interest in RIV Capital | |||||||
SEC | Securities and Exchange Commission | |||||||
SKU | stock-keeping unit, is a scannable bar code, most often seen printed on product labels in a retail store | |||||||
SOFR
|
secured overnight financing rate administered by the Federal Reserve Bank of New York
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SOX | Section 404 of the Sarbanes-Oxley Act of 2002 | |||||||
TCJ Act | Tax Cuts and Jobs Act | |||||||
Term Credit Agreement | a term loan credit agreement, dated as of September 14, 2018, that provided for aggregate facilities of $1.5 billion, consisting of the Three-Year Term Facility and the Five-Year Term Facility, now superseded by the 2020 Term Credit Agreement | |||||||
Term Loan Restatement Agreement | restatement agreement, dated as of March 26, 2020, that amended and restated the Term Credit Agreement, resulting in the 2020 Term Credit Agreement | |||||||
Three-Year Term Facility | a $500.0 million five-year term loan facility, now under the 2020 Term Credit Agreement | |||||||
Tranche A Warrants | warrants which gave us the option to purchase 88.5 million common shares of Canopy Growth Corporation expiring November 1, 2023 | |||||||
Tranche B Warrants | warrants which gave us the option to purchase 38.4 million common shares of Canopy Growth Corporation expiring November 1, 2026 | |||||||
Tranche C Warrants | warrants which gave us the option to purchase 12.8 million common shares of Canopy Growth Corporation expiring November 1, 2026 | |||||||
TSX
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Toronto Stock Exchange
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U.S. | United States of America | |||||||
VWAP Exercise Price
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volume-weighted average of the closing market price of Canopy’s common shares on the Toronto Stock Exchange for the five trading days immediately preceding the exercise date
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WHO | World Health Organization | |||||||
Wine and Spirits Divestiture
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sale of a portion of our wine and spirits business, including lower-margin, lower growth wine and spirits brands, related inventory, interests in certain contracts, wineries, vineyards, offices, and facilities
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Wine and Spirits Divestitures
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Wine and Spirits Divestiture and the Nobilo Wine Divestiture, collectively
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Constellation Brands, Inc. FY 2021 Form 10-K |
#WORTHREACHINGFOR I vi
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PART I | ITEM 1. BUSINESS |
Table of Contents
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Constellation Brands, Inc. FY 2021 Form 10-K |
#WORTHREACHINGFOR I 1
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PART I | ITEM 1. BUSINESS |
Table of Contents
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Date | Strategic Contribution | ||||||||||||||||
Beer segment | |||||||||||||||||
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Ballast Point Divestiture |
March
2020 |
Divestiture of the Ballast Point craft beer business, including a number of its production facilities and brewpubs; consistent with our strategic focus on our high-performing import portfolio. | ||||||||||||||
Wine and Spirits segment | |||||||||||||||||
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Paul Masson Divestiture |
January
2021 |
Divestiture of Paul Masson Grande Amber Brandy brand and related inventory; consistent with our increased focus on consumer-led premiumization trends. | ||||||||||||||
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Wine and Spirits Divestitures |
January
2021 |
Divestiture of lower-margin, lower-growth wine and spirits brands, wineries, vineyards, offices, and facilities; consistent with our focus on consumer-led premiumization trends. | ||||||||||||||
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Concentrate Business Divestiture |
December
2020 |
Divestiture of certain brands used in our concentrates and high-color concentrates business; consistent with our focus on consumer-led premiumization trends. | ||||||||||||||
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Copper & Kings |
September
2020 |
Acquisition of a collection of traditional and craft-batch distilled American brandies and other select spirits; supported our strategic focus to build an industry-leading portfolio of higher-end spirits brands. |
Constellation Brands, Inc. FY 2021 Form 10-K |
#WORTHREACHINGFOR I 2
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PART I | ITEM 1. BUSINESS |
Table of Contents
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Date | Strategic Contribution | ||||||||||||||||
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Empathy Wines |
June
2020 |
Acquisition of a digitally-native wine brand, strengthened our position in the direct-to-consumer and eCommerce markets; supported our focus on meeting the evolving needs of our consumers. | ||||||||||||||
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Booker Vineyard |
April
2020 |
Investment in super-luxury, direct-to-consumer focused wine business; supported our focus on consumer-led premiumization trends and meeting the evolving needs of our consumers. | ||||||||||||||
Canopy segment | |||||||||||||||||
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May 2020 Canopy Investment |
May
2020 |
Incremental investment in Canopy; expanded our strategic relationship. |
For the Years Ended | |||||||||||||||||||||||||||||||||||
February 28,
2021 |
February 29,
2020 |
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(in millions) | |||||||||||||||||||||||||||||||||||
Beer | $ | 6,074.6 | $ | 5,615.9 | |||||||||||||||||||||||||||||||
Wine and Spirits: | |||||||||||||||||||||||||||||||||||
Wine | 2,208.4 | 2,367.5 | |||||||||||||||||||||||||||||||||
Spirits | 331.9 | 360.1 | |||||||||||||||||||||||||||||||||
Total Wine and Spirits | 2,540.3 | 2,727.6 | |||||||||||||||||||||||||||||||||
Canopy | 378.6 | 290.2 | |||||||||||||||||||||||||||||||||
Consolidation and Eliminations | (378.6) | (290.2) | |||||||||||||||||||||||||||||||||
Consolidated Net Sales | $ | 8,614.9 | $ | 8,343.5 |
Constellation Brands, Inc. FY 2021 Form 10-K |
#WORTHREACHINGFOR I 3
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PART I | ITEM 1. BUSINESS |
Table of Contents
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Corona Brand Family | Modelo Brand Family | Other Import Brands | |||||||||||||||
Corona Extra
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Corona Light |
Modelo Especial
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Pacifico
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Corona Premier
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Corona Refresca
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Modelo Negra |
Victoria
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Corona Familiar
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Corona Hard Seltzer
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Modelo Chelada
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Constellation Brands, Inc. FY 2021 Form 10-K |
#WORTHREACHINGFOR I 4
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PART I | ITEM 1. BUSINESS |
Table of Contents
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Wine Brands | Wine Portfolio of Brands | Spirits Brands | |||||||||||||||
7 Moons
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Meiomi
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Charles Smith
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Casa Noble
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Cook’s California Champagne
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Mount Veeder
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Prisoner
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High West
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Cooper & Thief
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Ruffino
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Robert Mondavi
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Mi CAMPO
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Crafters Union
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SIMI
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Schrader
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Nelson’s Green Brier
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Kim Crawford
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The Dreaming Tree
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SVEDKA
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Constellation Brands, Inc. FY 2021 Form 10-K |
#WORTHREACHINGFOR I 5
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PART I | ITEM 1. BUSINESS |
Table of Contents
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Beer | Anheuser-Busch InBev, Molson Coors, Heineken, The Boston Beer Company, Mark Anthony | ||||
Wine | E. & J. Gallo Winery, The Wine Group, Trinchero Family Estates, Deutsch Family Wine & Spirits, Treasury Wine Estates, Ste. Michelle Wine Estates | ||||
Spirits | Diageo, Sazerac Company, Beam Suntory, Pernod Ricard, Bacardi USA, Brown-Forman, Fifth Generation |
Constellation Brands, Inc. FY 2021 Form 10-K |
#WORTHREACHINGFOR I 6
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PART I | ITEM 1. BUSINESS |
Table of Contents
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Constellation Brands, Inc. FY 2021 Form 10-K |
#WORTHREACHINGFOR I 7
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PART I | ITEM 1. BUSINESS |
Table of Contents
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Constellation Brands, Inc. FY 2021 Form 10-K |
#WORTHREACHINGFOR I 8
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PART I | ITEM 1. BUSINESS |
Table of Contents
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Constellation Brands, Inc. FY 2021 Form 10-K |
#WORTHREACHINGFOR I 9
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PART I | ITEM 1. BUSINESS |
Table of Contents
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For the Years Ended | |||||||||||||||||
February 28,
2021 |
February 29, 2020 |
Percent
Change |
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Recordable incident rate (1)
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0.95 | 1.45 | (34%) | ||||||||||||||
Industry average (2)
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3.50 | 3.35 |
Constellation Brands, Inc. FY 2021 Form 10-K |
#WORTHREACHINGFOR I 10
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PART I | ITEM 1. BUSINESS |
Table of Contents
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$6.4 million | ||
Fiscal 2021 corporate charitable contributions, including company match of employee donations |
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William A. Newlands, age 62, is the President and Chief Executive Officer of the Company. He has served as Chief Executive Officer of the Company and as a director since March 2019 and as President since February 2018. He served as Chief Operating Officer from January 2017 through February 2019 and as Executive Vice President of the Company from January 2015 until February 2018. From January 2016 to January 2017 he performed the role of President, Wine & Spirits Division and from January 2015 through January 2016 he performed the role of Chief Growth Officer. Mr. Newlands joined the Company in January 2015. Prior to that he served from October 2011 until August 2014 as Senior Vice President and President, North America of
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Beam Inc., as Senior Vice President and President, North America of Beam Global Spirits & Wine, Inc., from December 2010 to October 2011, and as Senior Vice President and President, USA of Beam Global Spirits & Wine, Inc. from February 2008 to December 2010. Beam Inc., a producer and seller of branded distilled spirits products, merged with a subsidiary of Suntory Holding Limited, a Japanese company, in 2014. Prior to October 2011, Beam Global Spirits & Wine, Inc. was the spirits operating segment of Fortune Brands, Inc., which was a leading consumer products company that made and sold branded consumer products worldwide in the distilled spirits, home and security, and golf markets.
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Constellation Brands, Inc. FY 2021 Form 10-K |
#WORTHREACHINGFOR I 11
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PART I | ITEM 1. BUSINESS |
Table of Contents
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Robert Sands, age 62, is the Executive Chairman of the Board of the Company, having served in the role since March 2019 and as a director since January 1990. Previously, he served as Chief Executive Officer of the Company from July 2007 through February 2019. Mr. Sands also served as President from December 2002 to February 2018, as Chief Operating Officer from December 2002 to July 2007, as Group President from April 2000 through December 2002, as Chief Executive Officer, International from December 1998 through April 2000, as Executive Vice President from October 1993 through April 2000, as General Counsel from June 1986 through May 2000, and as Vice President from June 1990 through October 1993. He is the brother of Richard Sands.
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Richard Sands, Ph.D., age 70, is the Executive Vice Chairman of the Board of the Company, having served in the role since March 2019. He previously served as Chairman of the Board from September 1999 through February 2019. He has been employed by the Company in various capacities since 1979. He has served as a director since 1982. He served as Chief Executive Officer from October 1993 to July 2007, as Executive Vice President from 1982 to May 1986, as President from May 1986 to December 2002, and as Chief Operating Officer from May 1986 to October 1993. He is the brother of Robert Sands.
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James O. Bourdeau, age 56, is the Executive Vice President and Chief Legal Officer of the Company, having served in the role since December 2017 and as the Company’s Secretary since April 2017. Prior to that, he served as the Company’s Senior Vice President and General Counsel, Corporate Development, having performed that role from September 2014 until December 2017. Before joining the Company in September 2014, Mr. Bourdeau was an attorney with the law firm of Nixon Peabody LLP from July 2000 through September 2014, and a partner from February 2005 through September 2014. Mr. Bourdeau was associated with another law firm from 1995 to 2000.
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BRG sponsorship - STELLAR PRIDE supporting our LGBTQ community
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Constellation Brands, Inc. FY 2021 Form 10-K |
#WORTHREACHINGFOR I 12
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PART I | ITEM 1. BUSINESS |
Table of Contents
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F. Paul Hetterich, age 58, is the Company’s Executive Vice President and President, Beer Division as well as President of Crown having performed these roles since January 2016. He has been an Executive Vice President of the Company since June 2003. From January 2015 through January 2016 he performed the role of Executive Vice President, Corporate Development & Beer Operations. From June 2011 until January 2015 he served as Executive Vice President, Business Development and Corporate Strategy, from July 2009 until June 2011 he served as Executive Vice President, Business Development, Corporate Strategy and International, and from June 2003 until July 2009 he served as Executive Vice President, Business Development and Corporate
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Strategy. From April 2001 to June 2003 Mr. Hetterich served as the Company’s Senior Vice President, Corporate Development. Prior to that, Mr. Hetterich held several increasingly senior positions in the Company’s marketing and business development groups. Mr. Hetterich has been with the Company since 1986.
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BRG sponsorship - Supporting and Attracting Latinos United for Diversity and Development
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Constellation Brands, Inc. FY 2021 Form 10-K |
#WORTHREACHINGFOR I 13
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PART I | ITEM 1. BUSINESS |
Table of Contents
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James A. Sabia, Jr., age 59, has been an Executive Vice President of the Company since May 2018. Beginning March 2021, Mr. Sabia has performed the role of Executive Vice President, Managing Director, Beer Division. From May 2018 through March 2021 he performed the role of Executive Vice President, Chief Marketing Officer. He joined the Company in August 2007 as Vice President, Marketing for the Company’s spirits business. Since then, he has served in roles of increasing responsibility with the Company. Since 2009, he has served as the Chief Marketing Officer of the Company’s Beer Division. From 2009 to June 2013, Mr. Sabia was employed by Crown, of which the Company owned a 50% interest and was the Company’s beer business
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during that period. In June 2013, the Company acquired the remaining 50% of Crown, which became a wholly-owned indirect subsidiary of the Company on that date. Prior to joining the Company, Mr. Sabia was with Molson Coors Brewing Company for 17 years.
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BRG sponsorship - African Americans Strengthening Constellation’s Engagement, Networking, & Development
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Constellation Brands, Inc. FY 2021 Form 10-K |
#WORTHREACHINGFOR I 14
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PART I | ITEM 1A. RISK FACTORS |
Table of Contents
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Constellation Brands, Inc. FY 2021 Form 10-K |
#WORTHREACHINGFOR I 15
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PART I | ITEM 1A. RISK FACTORS |
Table of Contents
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Constellation Brands, Inc. FY 2021 Form 10-K |
#WORTHREACHINGFOR I 16
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PART I | ITEM 1A. RISK FACTORS |
Table of Contents
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Constellation Brands, Inc. FY 2021 Form 10-K |
#WORTHREACHINGFOR I 17
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PART I | ITEM 1A. RISK FACTORS |
Table of Contents
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Constellation Brands, Inc. FY 2021 Form 10-K |
#WORTHREACHINGFOR I 18
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PART I | ITEM 1A. RISK FACTORS |
Table of Contents
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Constellation Brands, Inc. FY 2021 Form 10-K |
#WORTHREACHINGFOR I 19
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PART I | ITEM 1A. RISK FACTORS |
Table of Contents
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Constellation Brands, Inc. FY 2021 Form 10-K |
#WORTHREACHINGFOR I 20
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PART I | ITEM 1A. RISK FACTORS |
Table of Contents
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Constellation Brands, Inc. FY 2021 Form 10-K |
#WORTHREACHINGFOR I 21
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PART I | ITEM 1A. RISK FACTORS |
Table of Contents
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Constellation Brands, Inc. FY 2021 Form 10-K |
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PART I | ITEM 1A. RISK FACTORS |
Table of Contents
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Constellation Brands, Inc. FY 2021 Form 10-K |
#WORTHREACHINGFOR I 23
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PART I | ITEM 1A. RISK FACTORS |
Table of Contents
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Constellation Brands, Inc. FY 2021 Form 10-K |
#WORTHREACHINGFOR I 24
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PART I | ITEM 1A. RISK FACTORS |
Table of Contents
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Constellation Brands, Inc. FY 2021 Form 10-K |
#WORTHREACHINGFOR I 25
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PART I | ITEM 1A. RISK FACTORS |
Table of Contents
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Constellation Brands, Inc. FY 2021 Form 10-K |
#WORTHREACHINGFOR I 26
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PART I | ITEM 1A. RISK FACTORS |
Table of Contents
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Constellation Brands, Inc. FY 2021 Form 10-K |
#WORTHREACHINGFOR I 27
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PART I | OTHER KEY INFORMATION |
Table of Contents
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Beer |
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Wine and Spirits | |||||||||||
Breweries
● Compañía Cervecera de Coahuila in Nava, Coahuila, Mexico
● Compañía Cervecera de Obregón in Obregon, Sonora, Mexico
Glass production plant
● Industria Vidriera de Coahuila in Nava, Coahuila, Mexico (1)
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Wineries
● Gonzales Winery in Gonzales, California, U.S.
● Mission Bell Winery in Madera, California, U.S.
● Woodbridge Winery in Acampo, California, U.S.
● Drylands Winery in Marlborough, South Island, New Zealand
Warehouse, distribution, and other production facilities
● Lodi Distribution Center in Lodi, California, U.S. (2)
● Pontassieve Winery in Florence, Italy
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Constellation Brands, Inc. FY 2021 Form 10-K |
#WORTHREACHINGFOR I 28
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PART II | OTHER KEY INFORMATION |
Table of Contents
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Constellation Brands, Inc. FY 2021 Form 10-K |
#WORTHREACHINGFOR I 29
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PART II | ITEM 7. MD&A |
Table of Contents
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Constellation Brands, Inc. FY 2021 Form 10-K |
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PART II | ITEM 7. MD&A |
Table of Contents
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Constellation Brands, Inc. FY 2021 Form 10-K |
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PART II | ITEM 7. MD&A |
Table of Contents
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Constellation Brands, Inc. FY 2021 Form 10-K |
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PART II | ITEM 7. MD&A |
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Fiscal 2021 | Fiscal 2020 | ||||||||||
(in millions) | |||||||||||
Net sales | $ | 642.3 | $ | 868.2 | |||||||
Gross profit | $ | 252.9 | $ | 330.5 | |||||||
Marketing (1)
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$ | 14.5 | $ | 17.8 | |||||||
Constellation Brands, Inc. FY 2021 Form 10-K |
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PART II | ITEM 7. MD&A |
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Constellation Brands, Inc. FY 2021 Form 10-K |
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PART II | ITEM 7. MD&A |
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Fiscal 2021 | Fiscal 2020 | ||||||||||||||||
(in millions) | |||||||||||||||||
Cost of product sold | |||||||||||||||||
Recovery of (loss on) inventory write-down | $ | (70.4) | $ | 8.6 | |||||||||||||
Strategic business development costs | (29.8) | (124.5) | |||||||||||||||
COVID-19 incremental costs | (7.6) | — | |||||||||||||||
Flow through of inventory step-up | (0.4) | (1.5) | |||||||||||||||
Accelerated depreciation | (0.1) | (7.6) | |||||||||||||||
Settlements of undesignated commodity derivative contracts | 31.6 | 11.7 | |||||||||||||||
Net gain (loss) on undesignated commodity derivative contracts
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25.1 | (49.0) | |||||||||||||||
Total cost of product sold | (51.6) | (162.3) | |||||||||||||||
Selling, general, and administrative expenses | |||||||||||||||||
Restructuring and other strategic business development costs
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(23.9) | (25.3) | |||||||||||||||
Net gain (loss) on foreign currency derivative contracts | (8.0) | (1.8) | |||||||||||||||
Transaction, integration, and other acquisition-related costs | (7.6) | (9.2) | |||||||||||||||
Impairment of intangible assets
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(6.0) | (11.0) | |||||||||||||||
COVID-19 incremental costs | (4.8) | — | |||||||||||||||
Other gains (losses)
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14.7 | 7.3 | |||||||||||||||
Total selling, general, and administrative expenses | (35.6) | (40.0) | |||||||||||||||
Impairment of assets held for sale | (24.0) | (449.7) | |||||||||||||||
Gain (loss) on sale of business | 14.2 | 74.1 | |||||||||||||||
Comparable Adjustments, Operating income (loss) | $ | (97.0) | $ | (577.9) | |||||||||||||
Income (loss) from unconsolidated investments
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$ | 265.2 | $ | (2,480.1) |
Constellation Brands, Inc. FY 2021 Form 10-K |
#WORTHREACHINGFOR I 35
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PART II | ITEM 7. MD&A |
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Constellation Brands, Inc. FY 2021 Form 10-K |
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PART II | ITEM 7. MD&A |
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Fiscal 2021 | Fiscal 2020 |
Dollar
Change |
Percent
Change |
||||||||||||||||||||
(in millions) | |||||||||||||||||||||||
Beer | $ | 6,074.6 | $ | 5,615.9 | $ | 458.7 | 8 | % | |||||||||||||||
Wine and Spirits: | |||||||||||||||||||||||
Wine | 2,208.4 | 2,367.5 | (159.1) | (7 | %) | ||||||||||||||||||
Spirits | 331.9 | 360.1 | (28.2) | (8 | %) | ||||||||||||||||||
Total Wine and Spirits | 2,540.3 | 2,727.6 | (187.3) | (7 | %) | ||||||||||||||||||
Canopy | 378.6 | 290.2 | 88.4 | 30 | % | ||||||||||||||||||
Consolidation and Eliminations | (378.6) | (290.2) | (88.4) | (30 | %) | ||||||||||||||||||
Consolidated net sales | $ | 8,614.9 | $ | 8,343.5 | $ | 271.4 | 3 | % |
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Beer segment | |||||||||||||||||||||||||
Fiscal 2021 | Fiscal 2020 |
Dollar
Change |
Percent
Change |
|||||||||||||||||||||||
(in millions, branded product, 24-pack, 12-ounce case equivalents) | ||||||||||||||||||||||||||
Net sales | $ | 6,074.6 | $ | 5,615.9 | $ | 458.7 | 8 | % | ||||||||||||||||||
Shipment volume | ||||||||||||||||||||||||||
Total | 334.6 | 311.9 | 7.3 | % | ||||||||||||||||||||||
Organic (1)
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334.6 | 309.4 | 8.1 | % | ||||||||||||||||||||||
Depletion volume (1) (2)
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7.1 | % |
Constellation Brands, Inc. FY 2021 Form 10-K |
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PART II | ITEM 7. MD&A |
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Wine and Spirits segment | |||||||||||||||||||||||||
Fiscal 2021 | Fiscal 2020 |
Dollar
Change |
Percent
Change |
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(in millions, branded product, 9-liter case equivalents) | ||||||||||||||||||||||||||
Net sales | $ | 2,540.3 | $ | 2,727.6 | $ | (187.3) | (7 | %) | ||||||||||||||||||
Shipment volume | ||||||||||||||||||||||||||
Total
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45.0 | 53.6 | (16.0 | %) | ||||||||||||||||||||||
Organic (3) (4) (5)
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45.0 | 47.3 | (4.9 | %) | ||||||||||||||||||||||
U.S. Domestic
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41.5 | 49.5 | (16.2 | %) | ||||||||||||||||||||||
Organic U.S. Domestic (3) (4) (5)
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41.5 | 43.4 | (4.4 | %) | ||||||||||||||||||||||
U.S. Domestic depletion volume (2) (3) (4) (5)
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(2.8 | %) |
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Canopy segment
Our ownership interest in Canopy allows us to exercise significant influence, but not control, and, therefore, we account for our investment in Canopy under the equity method. Amounts included for the Canopy segment represent 100% of Canopy’s reported results on a two-month lag. Accordingly, we recognized our share of Canopy’s earnings (losses) from January through December 2020, in our Fiscal 2021 results and January through December 2019, in our Fiscal 2020 results. Although we own less than 100% of the outstanding shares of Canopy, 100% of the Canopy results are included and subsequently eliminated to reconcile to our consolidated financial statements. See “Income (loss) from unconsolidated investments” below for a discussion of Canopy’s net sales, gross profit (loss), selling, general, and administrative expenses, and operating income (loss).
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Fiscal 2021 | Fiscal 2020 |
Dollar
Change |
Percent
Change |
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(in millions) | |||||||||||||||||||||||
Beer | $ | 3,402.4 | $ | 3,125.2 | $ | 277.2 | 9 | % | |||||||||||||||
Wine and Spirits | 1,115.2 | 1,189.0 | (73.8) | (6 | %) | ||||||||||||||||||
Canopy | (14.1) | 45.4 | (59.5) | NM | |||||||||||||||||||
Consolidation and Eliminations | 14.1 | (45.4) | 59.5 | NM | |||||||||||||||||||
Comparable Adjustments | (51.6) | (162.3) | 110.7 | 68 | % | ||||||||||||||||||
Consolidated gross profit | $ | 4,466.0 | $ | 4,151.9 | $ | 314.1 | 8 | % |
Constellation Brands, Inc. FY 2021 Form 10-K |
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PART II | ITEM 7. MD&A |
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The increase in Beer is primarily due to $259.3 million of volume growth and the $69.7 million favorable impact from pricing, partially offset by $19.9 million of higher cost of product sold, $18.5 million decrease in gross profit due to the Ballast Point Divestiture, and $9.4 million of unfavorable product mix shift. The higher cost of product sold is largely due to $39.6 million increased operational costs and $3.8 million increased logistics costs, partially offset by $23.5 million of foreign currency transactional benefits. The increase in operational costs primarily consisted of (i) $32.3 million of higher material costs, largely attributable to glass, and (ii) $15.7 million of inflation and increased brewery compensation and benefits, partially offset by $20.4 million of favorable fixed cost absorption related to increased production in Fiscal 2021. The increase in logistics costs primarily consisted of $14.5 million increased transportation costs, partially offset by $11.8 million of decreased obsolescence driven by lower inventory levels as we replenished our distribution channels. Unfavorable product mix shift primarily resulted from increased sales of Corona Hard Seltzer, partially offset by a reduction in on-premise keg sales.
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The decrease in Wine and Spirits is largely due to a decrease of $90.0 million in gross profit due to the recent divestitures, $66.5 million higher cost of product sold, and $33.1 million of decline in branded wine and spirits volume, driven by the brands divested in January 2021, partially offset by $71.5 million of favorable product mix shift and the $51.1 million from favorable pricing. Higher cost of product sold was largely attributable to unfavorable fixed cost absorption including $28.6 million from decreased production levels at certain facilities in the second half of fiscal 2021 as a result of the 2020 U.S. wildfires, certain spirits packaging size obsolescence, increased winery compensation and benefits, as well as increased packaging costs, including glass and labels, partially offset by lower grape raw material costs.
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Fiscal 2021 | Fiscal 2020 |
Dollar
Change |
Percent
Change |
||||||||||||||||||||
(in millions) | |||||||||||||||||||||||
Beer | $ | 908.1 | $ | 877.3 | $ | 30.8 | 4 | % | |||||||||||||||
Wine and Spirits | 492.8 | 480.6 | 12.2 | 3 | % | ||||||||||||||||||
Corporate Operations and Other | 228.6 | 223.9 | 4.7 | 2 | % | ||||||||||||||||||
Canopy | 1,481.9 | 731.2 | 750.7 | NM | |||||||||||||||||||
Consolidation and Eliminations | (1,481.9) | (731.2) | (750.7) | NM | |||||||||||||||||||
Comparable Adjustments | 35.6 | 40.0 | (4.4) | (11 | %) | ||||||||||||||||||
Consolidated selling, general, and administrative expenses | $ | 1,665.1 | $ | 1,621.8 | $ | 43.3 | 3 | % |
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The increase in Beer is primarily due to an increase of $26.9 million in marketing spend that was largely driven by increased advertising resulting from planned investments to support the growth of our Mexican beer portfolio predominantly in the fourth quarter of Fiscal 2021.
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The increase in Wine and Spirits is primarily due to an increase of $8.6 million in marketing spend that was largely driven by an increased focus on eCommerce and digital marketing placement for our higher-end, higher-margin brands and a $5.9 million increase in general and administrative expenses. The increase in general and administrative expenses is driven by increased compensation and benefits, partially offset by a favorable impact from reduced travel driven by COVID-19 containment measures and certain cost saving initiatives.
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Constellation Brands, Inc. FY 2021 Form 10-K |
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PART II | ITEM 7. MD&A |
Table of Contents
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The increase in Corporate Operations and Other is largely due to approximately a $15 million increase in compensation and benefits, $6 million of unfavorable foreign currency losses, and an increase of $2 million in charitable contributions, primarily driven by COVID-19 support efforts, partially offset by decreased insurance related costs of $17 million and $6 million of favorable impact from reduced travel driven by COVID-19 containment measures.
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Fiscal 2021 | Fiscal 2020 |
Dollar
Change |
Percent
Change |
||||||||||||||||||||
(in millions) | |||||||||||||||||||||||
Beer | $ | 2,494.3 | $ | 2,247.9 | $ | 246.4 | 11 | % | |||||||||||||||
Wine and Spirits | 622.4 | 708.4 | (86.0) | (12 | %) | ||||||||||||||||||
Corporate Operations and Other | (228.6) | (223.9) | (4.7) | (2 | %) | ||||||||||||||||||
Canopy | (1,496.0) | (685.8) | (810.2) | NM | |||||||||||||||||||
Consolidation and Eliminations | 1,496.0 | 685.8 | 810.2 | NM | |||||||||||||||||||
Comparable Adjustments | (97.0) | (577.9) | 480.9 | 83 | % | ||||||||||||||||||
Consolidated operating income (loss) | $ | 2,791.1 | $ | 2,154.5 | $ | 636.6 | 30 | % |
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The increase in Beer is primarily attributable to the strong volume growth within our Mexican beer portfolio and favorable pricing impact, partially offset by the increased marketing spend and higher cost of product sold.
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The decrease in Wine and Spirits was driven largely by the recent divestitures, the higher cost of product sold, and the decline in branded wine and spirits volume, partially offset by favorable impacts from product mix shift and pricing.
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As previously discussed, the Corporate Operations and Other increase in operating loss is due largely to the increase in compensation and benefits, unfavorable foreign currency losses, and increased charitable contributions, partially offset by decreased insurance related costs and the favorable impact from reduced travel.
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Fiscal 2021 | Fiscal 2020 |
Dollar
Change |
Percent
Change |
||||||||||||||||||||
(in millions) | |||||||||||||||||||||||
Unrealized net gain (loss) on securities measured at fair value (1)
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$ | 802.0 | $ | (2,126.4) | $ | 2,928.4 | 138 | % | |||||||||||||||
Equity in earnings (losses) from Canopy and related activities (2)
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(679.0) | (575.9) | (103.1) | (18) | % | ||||||||||||||||||
Equity in earnings (losses) from other equity method investees | 27.3 | 33.3 | (6.0) | (18 | %) | ||||||||||||||||||
Net gain (loss) on sale of unconsolidated investment | — | 0.4 | (0.4) | NM | |||||||||||||||||||
$ | 150.3 | $ | (2,668.6) | $ | 2,818.9 | 106 | % |
Constellation Brands, Inc. FY 2021 Form 10-K |
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PART II | ITEM 7. MD&A |
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Canopy segment
Canopy net sales increased to $378.6 million for Fiscal 2021 from $290.2 million for Fiscal 2020. This increase of $88.4 million, or 30% is primarily attributable to an increase in other product offering sales and international medical sales, as well as additional Canadian recreational sales. The increase in other sales resulted from (i) the expansion of their U.S. distribution network for vaporizers sold by Storz & Bickel GmbH & Co. KG, (ii) beauty, skincare, wellness, and sleep product sales from their May 2019 acquisition of This Works Products Limited, and (iii) sales of sports nutrition beverages, mixes, protein, gum, and mints from their October 2019 acquisition of BioSteel. The increase in international medical sales largely resulted from Canopy’s April 2019 acquisition of C3. Canadian recreational sales benefited from the introductions of retail stores across Canada and cannabis-infused beverages. Canopy gross profit (loss) decreased to $(14.1) million for Fiscal 2021 from $45.4 million for Fiscal 2020. This decrease of $59.5 million is primarily driven by inventory write-downs related to its organizational and strategic review of their business and detailed evaluation of inventory. Canopy selling, general, and administrative expenses increased $750.7 million primarily from (i) their decision to close greenhouse facilities as well as other changes related to its organizational and strategic review of their business and (ii) expected credit losses on financial assets and related charges, partially offset by a reduction in stock-based compensation expense. The combination of these factors were the main contributors to the increase in operating loss of $810.2 million.
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Constellation Brands, Inc. FY 2021 Form 10-K |
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PART II | ITEM 7. MD&A |
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Fiscal 2021 | Fiscal 2020 |
Dollar
Change |
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(in millions) | |||||||||||||||||||||||
Net cash provided by (used in): | |||||||||||||||||||||||
Operating activities | $ | 2,806.5 | $ | 2,551.1 | $ | 255.4 | |||||||||||||||||
Investing activities | (87.9) | (531.0) | 443.1 | ||||||||||||||||||||
Financing activities | (2,346.6) | (2,031.4) | (315.2) | ||||||||||||||||||||
Effect of exchange rate changes on cash and cash equivalents | 7.2 | (0.9) | 8.1 | ||||||||||||||||||||
Net increase (decrease) in cash and cash equivalents | $ | 379.2 | $ | (12.2) | $ | 391.4 |
Constellation Brands, Inc. FY 2021 Form 10-K |
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PART II | ITEM 7. MD&A |
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Investments | Acquisitions | Divestitures | ||||||||||||||||||
Fiscal 2021 | ||||||||||||||||||||
● May 2020 Canopy Investment
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● Copper & Kings
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● Paul Masson Grande Amber Brandy
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● Booker Vineyard
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● Empathy Wines
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● Wine and Spirits Divestiture
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● Nobilo Wine
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● Concentrates and high-color concentrates
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● Ballast Point
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Fiscal 2020 | ||||||||||||||||||||
● Nelson’s Green Brier
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● Black Velvet Canadian Whisky
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Fiscal 2021 | Fiscal 2020 |
Dollar
Change |
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(in millions) | |||||||||||||||||
Net proceeds from (payments of) debt, current and long-term, and related activities | $ | (1,787.8) | $ | (1,464.8) | $ | (323.0) | |||||||||||
Dividends paid | (575.0) | (569.2) | (5.8) | ||||||||||||||
Purchases of treasury stock | — | (50.0) | 50.0 | ||||||||||||||
Net cash provided by stock-based compensation activities | 51.2 | 63.9 | (12.7) | ||||||||||||||
Distributions to noncontrolling interests | (35.0) | — | (35.0) | ||||||||||||||
Payment of contingent consideration | — | (11.3) | 11.3 | ||||||||||||||
Net cash provided by (used in) financing activities | $ | (2,346.6) | $ | (2,031.4) | $ | (315.2) |
Constellation Brands, Inc. FY 2021 Form 10-K |
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Debt repayment | Debt issuance |
Constellation Brands, Inc. FY 2021 Form 10-K |
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Remaining Borrowing Capacity | |||||||||||
February 28,
2021 |
April 14,
2021 |
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(in millions) | |||||||||||
Revolving credit facility (1)
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$ | 1,988.3 | $ | 1,988.4 |
Constellation Brands, Inc. FY 2021 Form 10-K |
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PART II | ITEM 7. MD&A |
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Class A Common Shares | |||||||||||||||||||||||
Repurchase Authorization | Dollar Value of Shares Repurchased | Number of Shares Repurchased | |||||||||||||||||||||
(in millions, except share data) | |||||||||||||||||||||||
2018 Authorization | $ | 3,000.0 | $ | 1,045.9 | 4,897,605 | ||||||||||||||||||
2021 Authorization | $ | 2,000.0 | $ | — | — |
Constellation Brands, Inc. FY 2021 Form 10-K |
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Short-term payments | Long-term payments | Total | |||||||||||||||
(in millions) | |||||||||||||||||
Contractual obligations: | |||||||||||||||||
Long-term debt (excluding unamortized debt issuance costs and unamortized discounts) | $ | 29.2 | $ | 10,490.7 | $ | 10,519.9 | |||||||||||
Interest payments on long-term debt (1)
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$ | 386.7 | $ | 3,707.6 | $ | 4,094.3 | |||||||||||
Operating leases | $ | 84.6 | $ | 574.7 | $ | 659.3 | |||||||||||
Other long-term liabilities (2)
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$ | 49.0 | $ | 207.7 | $ | 256.7 | |||||||||||
Purchase obligations | |||||||||||||||||
Raw materials and supplies | $ | 994.0 | $ | 3,069.8 | $ | 4,063.8 | |||||||||||
Contract services | $ | 189.1 | $ | 627.4 | $ | 816.5 | |||||||||||
Capital expenditures (3)
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$ | 140.0 | $ | 103.7 | $ | 243.7 | |||||||||||
In-process inventories | $ | 30.9 | $ | 44.4 | $ | 75.3 | |||||||||||
Other purchase obligations | $ | 8.4 | $ | 18.0 | $ | 26.4 | |||||||||||
Other: | |||||||||||||||||
Return value to shareholders (4)
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$ | 580.0 | $ | 3,225.8 | $ | 3,805.8 | |||||||||||
Investments in businesses (5)
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$ | 2.0 | $ | 165.3 | $ | 167.3 |
Constellation Brands, Inc. FY 2021 Form 10-K |
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Constellation Brands, Inc. FY 2021 Form 10-K |
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PART II | ITEM 7. MD&A |
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Constellation Brands, Inc. FY 2021 Form 10-K |
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PART II | ITEM 7. MD&A |
Table of Contents
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Constellation Brands, Inc. FY 2021 Form 10-K |
#WORTHREACHINGFOR I 50
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PART II | ITEM 7. MD&A |
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Constellation Brands, Inc. FY 2021 Form 10-K |
#WORTHREACHINGFOR I 51
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PART II | ITEM 7A. QUANTITATIVE AND QUALITATIVE DISCLOSURES |
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Aggregate
Notional Value |
Fair Value,
Net Asset (Liability) |
Increase (Decrease)
in Fair Value – Hypothetical 10% Adverse Change |
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February 28,
2021 |
February 29,
2020 |
February 28,
2021 |
February 29,
2020 |
February 28,
2021 |
February 29,
2020 |
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(in millions) | |||||||||||||||||||||||||||||||||||
Foreign currency contracts | $ | 2,262.7 | $ | 3,011.2 | $ | 66.9 | $ | 61.9 | $ | (129.7) | $ | (193.3) | |||||||||||||||||||||||
Commodity derivative contracts | $ | 221.6 | $ | 282.8 | $ | 15.9 | $ | (40.3) | $ | (22.5) | $ | 21.7 |
Constellation Brands, Inc. FY 2021 Form 10-K |
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Aggregate
Notional Value |
Fair Value
Net Asset (Liability) |
Increase (Decrease)
in Fair Value – Hypothetical 1% Rate Increase |
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February 28,
2021 |
February 29,
2020 |
February 28,
2021 |
February 29,
2020 |
February 28,
2021 |
February 29,
2020 |
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(in millions) | |||||||||||||||||||||||||||||||||||
Fixed interest rate debt | $ | 10,065.5 | $ | 10,075.3 | $ | (11,126.5) | $ | (10,942.8) | $ | (805.3) | $ | (708.4) | |||||||||||||||||||||||
Interest rate swap contracts | $ | — | $ | 375.0 | $ | — | $ | (0.8) | $ | — | $ | (0.3) | |||||||||||||||||||||||
Treasury lock contracts | $ | — | $ | 300.0 | $ | — | $ | (7.6) | $ | — | $ | (9.7) |
Constellation Brands, Inc. FY 2021 Form 10-K |
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Page | |||||||||||
Management’s Annual Report on Internal Control Over Financial Reporting | |||||||||||
Reports of Independent Registered Public Accounting Firm – KPMG LLP | |||||||||||
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. | Description of Business, Basis of Presentation, and Summary of Significant Accounting Policies | ||||||||||
2. | Acquisitions, Divestitures, and Business Transformation | ||||||||||
3. | Inventories | ||||||||||
4. | Prepaid Expenses and Other | ||||||||||
5. | Property, Plant, and Equipment | ||||||||||
6. | Derivative Instruments | ||||||||||
7. | Fair Value of Financial Instruments | ||||||||||
8. | Goodwill | ||||||||||
9. | Intangible Assets | ||||||||||
10. | Equity Method Investments | ||||||||||
11. | Other Accrued Expenses and Liabilities | ||||||||||
12. | Borrowings | ||||||||||
13. | Income Taxes | ||||||||||
14. | Deferred Income Taxes and Other Liabilities | ||||||||||
15. | Leases | ||||||||||
16. | Commitments and Contingencies | ||||||||||
17. | Stockholders' Equity | ||||||||||
18. | Stock-Based Employee Compensation | ||||||||||
19. | Net Income (Loss) Per Common Share Attributable to CBI | ||||||||||
20. | Accumulated Other Comprehensive Income (Loss) | ||||||||||
21. | Significant Customers and Concentration of Credit Risk | ||||||||||
22. | Business Segment Information | ||||||||||
23. | Subsequent Event | ||||||||||
24. | Selected Quarterly Financial Information (unaudited) |
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February 28,
2021 |
February 29,
2020 |
||||||||||
ASSETS | |||||||||||
Current assets: | |||||||||||
Cash and cash equivalents | $ | 460.6 | $ | 81.4 | |||||||
Accounts receivable | 785.3 | 864.8 | |||||||||
Inventories | 1,291.1 | 1,373.6 | |||||||||
Prepaid expenses and other | 507.5 | 535.8 | |||||||||
Assets held for sale - current | — | 628.5 | |||||||||
Total current assets | 3,044.5 | 3,484.1 | |||||||||
Property, plant, and equipment | 5,821.6 | 5,333.0 | |||||||||
Goodwill | 7,793.5 | 7,757.1 | |||||||||
Intangible assets | 2,732.1 | 2,718.9 | |||||||||
Equity method investments | 2,788.4 | 3,093.9 | |||||||||
Securities measured at fair value | 1,818.1 | 1,117.1 | |||||||||
Deferred income taxes | 2,492.5 | 2,656.3 | |||||||||
Assets held for sale | — | 552.1 | |||||||||
Other assets | 614.1 | 610.7 | |||||||||
Total assets | $ | 27,104.8 | $ | 27,323.2 | |||||||
LIABILITIES AND STOCKHOLDERS’ EQUITY | |||||||||||
Current liabilities: | |||||||||||
Short-term borrowings | $ | — | $ | 238.9 | |||||||
Current maturities of long-term debt | 29.2 | 734.9 | |||||||||
Accounts payable | 460.0 | 557.6 | |||||||||
Other accrued expenses and liabilities | 779.9 | 780.4 | |||||||||
Total current liabilities | 1,269.1 | 2,311.8 | |||||||||
Long-term debt, less current maturities | 10,413.1 | 11,210.8 | |||||||||
Deferred income taxes and other liabilities | 1,493.5 | 1,326.3 | |||||||||
Total liabilities | 13,175.7 | 14,848.9 | |||||||||
Commitments and contingencies (Note 17)
|
|||||||||||
CBI stockholders’ equity: | |||||||||||
Preferred Stock, $0.01 par value – Authorized, 1,000,000 shares; Issued, none
|
— | — | |||||||||
Class A Common Stock, $0.01 par value – Authorized, 322,000,000 shares; Issued, 187,204,280 shares and 186,090,745 shares, respectively
|
1.9 | 1.9 | |||||||||
Class B Convertible Common Stock, $0.01 par value – Authorized, 30,000,000 shares; Issued, 28,270,288 shares and 28,300,206 shares, respectively
|
0.3 | 0.3 | |||||||||
Class 1 Common Stock, $0.01 par value – Authorized, 25,000,000 shares; Issued, 612,936 shares and 1,692,227 shares, respectively
|
— | — | |||||||||
Additional paid-in capital | 1,604.2 | 1,514.6 | |||||||||
Retained earnings | 15,117.8 | 13,695.3 | |||||||||
Accumulated other comprehensive income (loss) | (335.5) | (266.3) | |||||||||
16,388.7 | 14,945.8 | ||||||||||
Less: Treasury stock – | |||||||||||
Class A Common Stock, at cost, 17,070,550 shares and 18,256,826 shares, respectively
|
(2,787.6) | (2,811.8) | |||||||||
Class B Convertible Common Stock, at cost, 5,005,800 shares
|
(2.2) | (2.2) | |||||||||
(2,789.8) | (2,814.0) | ||||||||||
Total CBI stockholders’ equity | 13,598.9 | 12,131.8 | |||||||||
Noncontrolling interests | 330.2 | 342.5 | |||||||||
Total stockholders’ equity | 13,929.1 | 12,474.3 | |||||||||
Total liabilities and stockholders’ equity | $ | 27,104.8 | $ | 27,323.2 |
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For the Years Ended | |||||||||||||||||
February 28,
2021 |
February 29,
2020 |
February 28,
2019 |
|||||||||||||||
Sales | $ | 9,355.7 | $ | 9,113.0 | $ | 8,884.3 | |||||||||||
Excise taxes | (740.8) | (769.5) | (768.3) | ||||||||||||||
Net sales | 8,614.9 | 8,343.5 | 8,116.0 | ||||||||||||||
Cost of product sold | (4,148.9) | (4,191.6) | (4,035.7) | ||||||||||||||
Gross profit | 4,466.0 | 4,151.9 | 4,080.3 | ||||||||||||||
Selling, general, and administrative expenses | (1,665.1) | (1,621.8) | (1,668.1) | ||||||||||||||
Impairment of assets held for sale | (24.0) | (449.7) | — | ||||||||||||||
Gain (loss) on sale of business | 14.2 | 74.1 | — | ||||||||||||||
Operating income (loss) | 2,791.1 | 2,154.5 | 2,412.2 | ||||||||||||||
Income (loss) from unconsolidated investments | 150.3 | (2,668.6) | 2,101.6 | ||||||||||||||
Interest expense | (385.7) | (428.7) | (367.1) | ||||||||||||||
Loss on extinguishment of debt | (12.8) | (2.4) | (1.7) | ||||||||||||||
Income (loss) before income taxes | 2,542.9 | (945.2) | 4,145.0 | ||||||||||||||
(Provision for) benefit from income taxes | (511.1) | 966.6 | (685.9) | ||||||||||||||
Net income (loss) | 2,031.8 | 21.4 | 3,459.1 | ||||||||||||||
Net income (loss) attributable to noncontrolling interests | (33.8) | (33.2) | (23.2) | ||||||||||||||
Net income (loss) attributable to CBI | $ | 1,998.0 | $ | (11.8) | $ | 3,435.9 | |||||||||||
Net income (loss) per common share attributable to CBI: | |||||||||||||||||
Basic – Class A Common Stock | $ | 10.44 | $ | (0.07) | $ | 18.24 | |||||||||||
Basic – Class B Convertible Common Stock | $ | 9.48 | $ | (0.07) | $ | 16.57 | |||||||||||
Diluted – Class A Common Stock | $ | 10.23 | $ | (0.07) | $ | 17.57 | |||||||||||
Diluted – Class B Convertible Common Stock | $ | 9.42 | $ | (0.07) | $ | 16.21 | |||||||||||
Weighted average common shares outstanding: | |||||||||||||||||
Basic – Class A Common Stock | 170.239 | 168.329 | 167.249 | ||||||||||||||
Basic – Class B Convertible Common Stock | 23.280 | 23.313 | 23.321 | ||||||||||||||
Diluted – Class A Common Stock | 195.308 | 168.329 | 195.532 | ||||||||||||||
Diluted – Class B Convertible Common Stock | 23.280 | 23.313 | 23.321 | ||||||||||||||
Cash dividends declared per common share: | |||||||||||||||||
Class A Common Stock | $ | 3.00 | $ | 3.00 | $ | 2.96 | |||||||||||
Class B Convertible Common Stock | $ | 2.72 | $ | 2.72 | $ | 2.68 |
Comprehensive income (loss): | |||||||||||||||||
Net income (loss) | $ | 2,031.8 | $ | 21.4 | $ | 3,459.1 | |||||||||||
Other comprehensive income (loss), net of income tax effect: | |||||||||||||||||
Foreign currency translation adjustments | (56.0) | 60.8 | (196.8) | ||||||||||||||
Unrealized gain (loss) on cash flow hedges | (20.9) | 40.4 | 11.4 | ||||||||||||||
Unrealized gain (loss) on available-for-sale debt securities | — | — | 2.5 | ||||||||||||||
Pension/postretirement adjustments | (1.6) | (0.6) | 0.5 | ||||||||||||||
Share of other comprehensive income (loss) of equity method investments | (1.8) | (10.1) | 29.6 | ||||||||||||||
Other comprehensive income (loss), net of income tax effect | (80.3) | 90.5 | (152.8) | ||||||||||||||
Comprehensive income (loss) | 1,951.5 | 111.9 | 3,306.3 | ||||||||||||||
Comprehensive (income) loss attributable to noncontrolling interests | (22.7) | (36.1) | (21.4) | ||||||||||||||
Comprehensive income (loss) attributable to CBI | $ | 1,928.8 | $ | 75.8 | $ | 3,284.9 |
Constellation Brands, Inc. FY 2021 Form 10-K |
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Common 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, 2018 | $ | 2.6 | $ | 0.3 | $ | 2,825.3 | $ | 9,157.2 | $ | (202.9) | $ | (3,807.4) | $ | 16.6 | $ | 7,991.7 | |||||||||||||||||||||||||||||||
Cumulative effect of change in accounting principle | — | — | — | 2,242.0 | — | — | — | 2,242.0 | |||||||||||||||||||||||||||||||||||||||
Comprehensive income (loss): | |||||||||||||||||||||||||||||||||||||||||||||||
Net income (loss) | — | — | — | 3,435.9 | — | — | 23.2 | 3,459.1 | |||||||||||||||||||||||||||||||||||||||
Other comprehensive income (loss), net of income tax effect | — | — | — | — | (151.0) | — | (1.8) | (152.8) | |||||||||||||||||||||||||||||||||||||||
Comprehensive income (loss) | 3,306.3 | ||||||||||||||||||||||||||||||||||||||||||||||
Retirement of treasury shares | (0.7) | — | (1,522.3) | — | — | 1,523.0 | — | — | |||||||||||||||||||||||||||||||||||||||
Repurchase of shares | — | — | — | — | — | (504.3) | — | (504.3) | |||||||||||||||||||||||||||||||||||||||
Dividends declared | — | — | — | (558.9) | — | — | — | (558.9) | |||||||||||||||||||||||||||||||||||||||
Conversion of long-term debt to noncontrolling equity interest | — | — | — | — | — | — | 248.2 | 248.2 | |||||||||||||||||||||||||||||||||||||||
Shares issued under equity compensation plans | — | — | 45.2 | — | — | 4.4 | — | 49.6 | |||||||||||||||||||||||||||||||||||||||
Stock-based compensation | — | — | 62.6 | — | — | — | — | 62.6 | |||||||||||||||||||||||||||||||||||||||
Balance at February 28, 2019 | 1.9 | 0.3 | 1,410.8 | 14,276.2 | (353.9) | (2,784.3) | 286.2 | 12,837.2 | |||||||||||||||||||||||||||||||||||||||
Comprehensive income (loss): | |||||||||||||||||||||||||||||||||||||||||||||||
Net income (loss) | — | — | — | (11.8) | — | — | 33.2 | 21.4 | |||||||||||||||||||||||||||||||||||||||
Other comprehensive income (loss), net of income tax effect | — | — | — | — | 87.6 | — | 2.9 | 90.5 | |||||||||||||||||||||||||||||||||||||||
Comprehensive income (loss) | 111.9 | ||||||||||||||||||||||||||||||||||||||||||||||
Repurchase of shares | — | — | — | — | — | (50.0) | — | (50.0) | |||||||||||||||||||||||||||||||||||||||
Dividends declared | — | — | — | (569.1) | — | — | — | (569.1) | |||||||||||||||||||||||||||||||||||||||
Initial recognition of non-controlling interest | — | — | — | — | — | — | 20.2 | 20.2 | |||||||||||||||||||||||||||||||||||||||
Shares issued under equity compensation plans | — | — | 43.8 | — | — | 20.3 | — | 64.1 | |||||||||||||||||||||||||||||||||||||||
Stock-based compensation | — | — | 60.0 | — | — | — | — | 60.0 | |||||||||||||||||||||||||||||||||||||||
Balance at February 29, 2020 | 1.9 | 0.3 | 1,514.6 | 13,695.3 | (266.3) | (2,814.0) | 342.5 | 12,474.3 | |||||||||||||||||||||||||||||||||||||||
Comprehensive income (loss): | |||||||||||||||||||||||||||||||||||||||||||||||
Net income (loss) | — | — | — | 1,998.0 | — | — | 33.8 | 2,031.8 | |||||||||||||||||||||||||||||||||||||||
Other comprehensive income (loss), net of income tax effect | — | — | — | — | (69.2) | — | (11.1) | (80.3) | |||||||||||||||||||||||||||||||||||||||
Comprehensive income (loss) | 1,951.5 | ||||||||||||||||||||||||||||||||||||||||||||||
Dividends declared | — | — | — | (575.5) | — | — | — | (575.5) | |||||||||||||||||||||||||||||||||||||||
Noncontrolling interest distributions | — | — | — | — | — | — | (35.0) | (35.0) | |||||||||||||||||||||||||||||||||||||||
Shares issued under equity compensation plans | — | — | 27.0 | — | — | 24.2 | — | 51.2 | |||||||||||||||||||||||||||||||||||||||
Stock-based compensation | — | — | 62.6 | — | — | — | — | 62.6 | |||||||||||||||||||||||||||||||||||||||
Balance at February 28, 2021 | $ | 1.9 | $ | 0.3 | $ | 1,604.2 | $ | 15,117.8 | $ | (335.5) | $ | (2,789.8) | $ | 330.2 | $ | 13,929.1 |
Constellation Brands, Inc. FY 2021 Form 10-K |
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CONSTELLATION BRANDS, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CASH FLOWS
(in millions)
|
|||||||||||||||||
For the Years Ended | |||||||||||||||||
February 28,
2021 |
February 29,
2020 |
February 28,
2019 |
|||||||||||||||
CASH FLOWS FROM OPERATING ACTIVITIES | |||||||||||||||||
Net income (loss) | $ | 2,031.8 | $ | 21.4 | $ | 3,459.1 | |||||||||||
Adjustments to reconcile net income (loss) to net cash provided by operating activities: | |||||||||||||||||
Unrealized net (gain) loss on securities measured at fair value | (802.0) | 2,126.4 | (1,971.2) | ||||||||||||||
Deferred tax provision (benefit) | 336.4 | (1,153.7) | 426.9 | ||||||||||||||
Depreciation | 293.8 | 326.5 | 333.1 | ||||||||||||||
Stock-based compensation | 63.0 | 60.4 | 64.1 | ||||||||||||||
Equity in (earnings) losses of equity method investees and related activities, net of distributed earnings | 673.4 | 560.8 | 13.5 | ||||||||||||||
Noncash lease expense | 83.3 | 88.3 | — | ||||||||||||||
Impairment and amortization of intangible assets | 11.3 | 16.7 | 114.0 | ||||||||||||||
Amortization of debt issuance costs and loss on extinguishment of debt | 24.3 | 16.1 | 29.4 | ||||||||||||||
Net (gain) loss on sale of unconsolidated investment | — | (0.4) | (99.8) | ||||||||||||||
Impairment of assets held for sale | 24.0 | 449.7 | — | ||||||||||||||
(Gain) loss on sale of business | (14.2) | (74.1) | — | ||||||||||||||
Loss on inventory and related contracts associated with business optimization | 25.8 | 123.0 | — | ||||||||||||||
Loss on settlement of treasury lock contracts | (29.3) | — | — | ||||||||||||||
Net income tax benefit related to the Tax Cuts and Jobs Act | — | — | (37.6) | ||||||||||||||
Change in operating assets and liabilities, net of effects from purchase and sale of business: | |||||||||||||||||
Accounts receivable | 59.6 | (22.0) | (71.9) | ||||||||||||||
Inventories | 193.7 | (29.5) | (61.9) | ||||||||||||||
Prepaid expenses and other current assets | 65.7 | 8.1 | (103.0) | ||||||||||||||
Accounts payable | (95.7) | 16.8 | 21.4 | ||||||||||||||
Other accrued expenses and liabilities | (75.0) | (58.5) | (22.1) | ||||||||||||||
Other | (63.4) | 75.1 | 152.3 | ||||||||||||||
Total adjustments | 774.7 | 2,529.7 | (1,212.8) | ||||||||||||||
Net cash provided by (used in) operating activities | 2,806.5 | 2,551.1 | 2,246.3 | ||||||||||||||
CASH FLOWS FROM INVESTING ACTIVITIES | |||||||||||||||||
Purchase of property, plant, and equipment | (864.6) | (726.5) | (886.3) | ||||||||||||||
Purchase of business, net of cash acquired | (19.9) | (36.2) | (45.6) | ||||||||||||||
Investments in equity method investees and securities | (222.4) | (48.2) | (4,081.5) | ||||||||||||||
Proceeds from sale of assets | 18.9 | 8.3 | 72.3 | ||||||||||||||
Proceeds from sale of unconsolidated investment | — | 1.5 | 110.2 | ||||||||||||||
Proceeds from sale of business | 999.5 | 269.7 | — | ||||||||||||||
Other investing activities | 0.6 | 0.4 | (0.9) | ||||||||||||||
Net cash provided by (used in) investing activities | (87.9) | (531.0) | (4,831.8) |
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CONSTELLATION BRANDS, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CASH FLOWS
(in millions)
|
|||||||||||||||||
For the Years Ended | |||||||||||||||||
February 28,
2021 |
February 29,
2020 |
February 28,
2019 |
|||||||||||||||
CASH FLOWS FROM FINANCING ACTIVITIES | |||||||||||||||||
Proceeds from issuance of long-term debt | 1,194.7 | 1,291.3 | 3,657.6 | ||||||||||||||
Principal payments of long-term debt | (2,721.3) | (2,195.3) | (62.8) | ||||||||||||||
Net proceeds from (repayments of) short-term borrowings | (238.9) | (552.6) | 45.5 | ||||||||||||||
Dividends paid | (575.0) | (569.2) | (557.7) | ||||||||||||||
Purchase of treasury stock | — | (50.0) | (504.3) | ||||||||||||||
Proceeds from shares issued under equity compensation plans | 58.9 | 78.2 | 63.2 | ||||||||||||||
Payments of minimum tax withholdings on stock-based payment awards | (7.7) | (14.3) | (13.6) | ||||||||||||||
Payments of debt issuance, debt extinguishment, and other financing costs | (22.3) | (8.2) | (34.6) | ||||||||||||||
Distributions to noncontrolling interests | (35.0) | — | — | ||||||||||||||
Payment of contingent consideration | — | (11.3) | — | ||||||||||||||
Net cash provided by (used in) financing activities | (2,346.6) | (2,031.4) | 2,593.3 | ||||||||||||||
Effect of exchange rate changes on cash and cash equivalents | 7.2 | (0.9) | (4.5) | ||||||||||||||
Net increase (decrease) in cash and cash equivalents | 379.2 | (12.2) | 3.3 | ||||||||||||||
Cash and cash equivalents, beginning of year | 81.4 | 93.6 | 90.3 | ||||||||||||||
Cash and cash equivalents, end of year | $ | 460.6 | $ | 81.4 | $ | 93.6 | |||||||||||
SUPPLEMENTAL DISCLOSURES OF CASH FLOW INFORMATION | |||||||||||||||||
Cash paid during the year | |||||||||||||||||
Interest, net of interest capitalized | $ | 418.5 | $ | 448.9 | $ | 324.8 | |||||||||||
Income taxes, net of refunds received | $ | 189.7 | $ | 85.3 | $ | 186.2 | |||||||||||
Noncash investing and financing activities | |||||||||||||||||
Additions to property, plant, and equipment | $ | 101.1 | $ | 70.4 | $ | 141.7 | |||||||||||
Conversion of long-term debt to noncontrolling equity interest | $ | — | $ | — | $ | 248.2 | |||||||||||
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Years | |||||
Land improvements |
15 to 32
|
||||
Vineyards |
16 to 26
|
||||
Buildings and improvements |
10 to 50
|
||||
Machinery and equipment |
3 to 35
|
||||
Motor vehicles |
3 to 8
|
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(in millions) | |||||
Cash received from buyer | $ | 267.4 | |||
Net assets sold | (201.3) | ||||
Contract termination | (4.0) | ||||
Direct costs to sell | (3.2) | ||||
Gain on sale of business | $ | 58.9 |
(in millions) | |||||
Cash received from buyer | $ | 667.4 | |||
Net assets sold | (671.7) | ||||
Transition services agreements | (13.0) | ||||
Direct costs to sell | (8.1) | ||||
AOCI reclassification adjustments, primarily foreign currency translation | (5.1) | ||||
Other | (5.2) | ||||
Loss on sale of business | $ | (35.7) |
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(in millions) | |||||
Cash received from buyer | $ | 266.7 | |||
Net assets sold | (213.3) | ||||
AOCI reclassification adjustments, primarily foreign currency translation | 20.9 | ||||
Direct costs to sell | (3.8) | ||||
Gain on sale of business | $ | 70.5 |
February 29, 2020 | |||||||||||||||||
Beer | Wine and Spirits | Consolidated | |||||||||||||||
(in millions) | |||||||||||||||||
Assets | |||||||||||||||||
Accounts receivable | $ | 2.4 | $ | — | $ | 2.4 | |||||||||||
Inventories | 13.7 | 576.9 | 590.6 | ||||||||||||||
Prepaid expenses and other | 2.8 | 32.7 | 35.5 | ||||||||||||||
Assets held for sale - current | 18.9 | 609.6 | 628.5 | ||||||||||||||
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February 29, 2020 | |||||||||||||||||
Beer | Wine and Spirits | Consolidated | |||||||||||||||
(in millions) | |||||||||||||||||
Property, plant, and equipment | 55.9 | 172.6 | 228.5 | ||||||||||||||
Goodwill | 4.7 | 304.3 | 309.0 | ||||||||||||||
Intangible assets | 28.2 | 384.0 | 412.2 | ||||||||||||||
Equity method investments | — | 1.0 | 1.0 | ||||||||||||||
Other assets | 24.8 | 26.3 | 51.1 | ||||||||||||||
Less: Reserve for assets held for sale | (42.7) | (407.0) | (449.7) | ||||||||||||||
Assets held for sale | 70.9 | 481.2 | 552.1 | ||||||||||||||
Liabilities | |||||||||||||||||
Accounts payable | 0.2 | 0.6 | 0.8 | ||||||||||||||
Other accrued expenses and liabilities | 11.0 | 17.8 | 28.8 | ||||||||||||||
Deferred income taxes and other liabilities | 33.3 | — | 33.3 | ||||||||||||||
Liabilities held for sale (1)
|
44.5 | 18.4 | 62.9 | ||||||||||||||
Net assets held for sale | $ | 45.3 | $ | 1,072.4 | $ | 1,117.7 |
For the Years Ended | ||||||||||||||||||||
Results of Operations Location |
February 28,
2021 |
February 29, 2020 | ||||||||||||||||||
(in millions) | ||||||||||||||||||||
Contract termination costs | Cost of product sold | $ | 20.9 | $ | 20.1 | |||||||||||||||
Loss on inventory write-downs | Cost of product sold | 4.7 | 102.9 | |||||||||||||||||
Employee termination costs | Selling, general, and administrative expenses | 4.1 | 12.5 | |||||||||||||||||
Other costs | Selling, general, and administrative expenses | 9.7 | 8.4 | |||||||||||||||||
Impairment of long-lived assets | Impairment of assets held for sale | 24.0 | 407.0 | |||||||||||||||||
$ | 63.4 | $ | 550.9 |
February 28,
2021 |
February 29, 2020 (1)
|
||||||||||
(in millions) | |||||||||||
Raw materials and supplies | $ | 151.1 | $ | 171.7 | |||||||
In-process inventories | 735.9 | 814.7 | |||||||||
Finished case goods | 404.1 | 387.2 | |||||||||
$ | 1,291.1 | $ | 1,373.6 |
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February 28,
2021 |
February 29, 2020 (1)
|
||||||||||
(in millions) | |||||||||||
Value added taxes receivable | $ | 257.8 | $ | 315.2 | |||||||
Derivative assets | 48.7 | 57.3 | |||||||||
Income taxes receivable | 45.4 | 35.2 | |||||||||
Prepaid excise and sales taxes | 40.9 | 38.8 | |||||||||
Other | 114.7 | 89.3 | |||||||||
$ | 507.5 | $ | 535.8 |
February 28,
2021 |
February 29, 2020 (1)
|
||||||||||
(in millions) | |||||||||||
Land and land improvements | $ | 434.0 | $ | 440.2 | |||||||
Vineyards | 226.0 | 215.8 | |||||||||
Buildings and improvements | 983.4 | 975.1 | |||||||||
Machinery and equipment | 3,696.9 | 3,627.9 | |||||||||
Motor vehicles | 131.3 | 109.5 | |||||||||
Construction in progress (2)
|
2,084.2 | 1,422.7 | |||||||||
7,555.8 | 6,791.2 | ||||||||||
Less – Accumulated depreciation | (1,734.2) | (1,458.2) | |||||||||
$ | 5,821.6 | $ | 5,333.0 |
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February 28,
2021 |
February 29,
2020 |
||||||||||
(in millions) | |||||||||||
Derivative instruments designated as hedging instruments | |||||||||||
Foreign currency contracts | $ | 1,558.0 | $ | 1,831.0 | |||||||
Interest rate swap contracts | $ | — | $ | 375.0 | |||||||
Treasury lock contracts | $ | — | $ | 300.0 | |||||||
Derivative instruments not designated as hedging instruments | |||||||||||
Foreign currency contracts | $ | 704.7 | $ | 1,180.2 | |||||||
Commodity derivative contracts | $ | 221.6 | $ | 282.8 |
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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 Year Ended February 28, 2021 | ||||||||||||||||||||
Foreign currency contracts | $ | (31.1) | Sales | $ | 1.4 | |||||||||||||||
Cost of product sold | (25.4) | |||||||||||||||||||
Interest rate swap contracts | (0.6) | Interest expense | (1.1) | |||||||||||||||||
Treasury lock contracts | (16.1) | Interest expense | (1.8) | |||||||||||||||||
$ | (47.8) | $ | (26.9) | |||||||||||||||||
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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 Year Ended February 29, 2020 | ||||||||||||||||||||
Foreign currency contracts | $ | 66.8 | Sales | $ | — | |||||||||||||||
Cost of product sold | 20.2 | |||||||||||||||||||
Interest rate swap contracts | (0.5) | Interest expense | — | |||||||||||||||||
Treasury lock contracts | (5.7) | Interest expense | — | |||||||||||||||||
$ | 60.6 | $ | 20.2 | |||||||||||||||||
For the Year Ended February 28, 2019 | ||||||||||||||||||||
Foreign currency contracts | $ | 15.9 | Sales | $ | 0.4 | |||||||||||||||
Cost of product sold | 4.1 | |||||||||||||||||||
$ | 15.9 | $ | 4.5 |
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 Year Ended February 28, 2021 | ||||||||||||||||||||
Commodity derivative contracts | Cost of product sold | $ | 25.1 | |||||||||||||||||
Foreign currency contracts | Selling, general, and administrative expenses | (17.4) | ||||||||||||||||||
$ | 7.7 | |||||||||||||||||||
For the Year Ended February 29, 2020 | ||||||||||||||||||||
Commodity derivative contracts | Cost of product sold | $ | (49.0) | |||||||||||||||||
Foreign currency contracts | Selling, general, and administrative expenses | (7.8) | ||||||||||||||||||
$ | (56.8) | |||||||||||||||||||
For the Year Ended February 28, 2019 | ||||||||||||||||||||
Commodity derivative contracts | Cost of product sold | $ | 1.8 | |||||||||||||||||
Foreign currency contracts | Selling, general, and administrative expenses | (60.8) | ||||||||||||||||||
Interest rate swap contracts | Interest expense | 35.0 | ||||||||||||||||||
$ | (24.0) |
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February 28, 2021 (1)(2)
|
February 29, 2020 (2)
|
||||||||||||||||||||||||||||
Tranche A Warrants (3)
|
Tranche B Warrants (4)
|
Tranche A Warrants (3)
|
Tranche B Warrants (4)
|
November
2017 Canopy
Warrants (3)
|
|||||||||||||||||||||||||
Exercise price (5)
|
C$ | 50.40 | C$ | 76.68 | C$ | 50.40 | C$ | 76.68 | C$ | 12.98 | |||||||||||||||||||
Valuation date stock price (6)
|
C$ | 41.90 | C$ | 41.90 | C$ | 25.17 | C$ | 25.17 | C$ | 25.17 | |||||||||||||||||||
Remaining contractual term (7)
|
2.7 years | 5.7 years | 3.7 years | 6.7 years | 0.2 years | ||||||||||||||||||||||||
Expected volatility (8)
|
70.0 | % | 70.0 | % | 70.0 | % | 70.0 | % | 105.3 | % | |||||||||||||||||||
Risk-free interest rate (9)
|
0.5 | % | 1.1 | % | 1.1 | % | 1.1 | % | 1.5 | % | |||||||||||||||||||
Expected dividend yield (10)
|
0.0 | % | 0.0 | % | 0.0 | % | 0.0 | % | 0.0 | % |
November 2017 Canopy Warrants | May 1, 2020 | |||||||
Tranche A Warrants | November 1, 2023 | |||||||
Tranche B Warrants | November 1, 2026 | |||||||
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February 28,
2021 |
February 29,
2020 |
||||||||||
Conversion price (1)
|
C$ | 48.17 | C$ | 48.17 | |||||||
Valuation date stock price (2)
|
C$ | 41.90 | C$ | 25.17 | |||||||
Remaining term (3)
|
2.4 years | 3.4 years | |||||||||
Expected volatility (4)
|
57.6 | % | 58.2 | % | |||||||
Risk-free interest rate (5)
|
0.4 | % | 1.1 | % | |||||||
Expected dividend yield (6)
|
0.0 | % | 0.0 | % |
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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) | |||||||||||||||||||||||
February 28, 2021 | |||||||||||||||||||||||
Assets: | |||||||||||||||||||||||
Foreign currency contracts | $ | — | $ | 76.6 | $ | — | $ | 76.6 | |||||||||||||||
Commodity derivative contracts | $ | — | $ | 21.2 | $ | — | $ | 21.2 | |||||||||||||||
Equity securities (1)
|
$ | — | $ | 1,639.7 | $ | — | $ | 1,639.7 | |||||||||||||||
Canopy Debt Securities (1)
|
$ | — | $ | 176.3 | $ | — | $ | 176.3 | |||||||||||||||
Liabilities: | |||||||||||||||||||||||
Foreign currency contracts | $ | — | $ | 9.7 | $ | — | $ | 9.7 | |||||||||||||||
Commodity derivative contracts | $ | — | $ | 5.3 | $ | — | $ | 5.3 | |||||||||||||||
February 29, 2020 | |||||||||||||||||||||||
Assets: | |||||||||||||||||||||||
Foreign currency contracts | $ | — | $ | 96.3 | $ | — | $ | 96.3 | |||||||||||||||
Commodity derivative contracts | $ | — | $ | 0.6 | $ | — | $ | 0.6 | |||||||||||||||
Equity securities (1)
|
$ | — | $ | 991.5 | $ | — | $ | 991.5 | |||||||||||||||
Canopy Debt Securities (1)
|
$ | — | $ | 125.6 | $ | — | $ | 125.6 | |||||||||||||||
Liabilities: | |||||||||||||||||||||||
Foreign currency contracts | $ | — | $ | 34.4 | $ | — | $ | 34.4 | |||||||||||||||
Commodity derivative contracts | $ | — | $ | 40.9 | $ | — | $ | 40.9 | |||||||||||||||
Interest rate swap contracts | $ | — | $ | 0.8 | $ | — | $ | 0.8 | |||||||||||||||
Treasury lock contracts | $ | — | $ | 7.6 | $ | — | $ | 7.6 |
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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 Year Ended February 28, 2021 | |||||||||||||||||||||||
Long-lived assets held for sale | $ | — | $ | — | $ | — | $ | 24.0 | |||||||||||||||
Trademarks | — | — | 4.0 | 6.0 | |||||||||||||||||||
$ | — | $ | — | $ | 4.0 | $ | 30.0 | ||||||||||||||||
For the Year Ended February 29, 2020 | |||||||||||||||||||||||
Long-lived assets held for sale | $ | — | $ | — | $ | 949.3 | $ | 449.7 | |||||||||||||||
Trademarks (1)
|
— | — | — | 11.0 | |||||||||||||||||||
$ | — | $ | — | $ | 949.3 | $ | 460.7 | ||||||||||||||||
For the Year Ended February 28, 2019 | |||||||||||||||||||||||
Trademarks | $ | — | $ | — | $ | 28.0 | $ | 108.0 |
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Beer | Wine and Spirits | Consolidated | |||||||||||||||||||||
(in millions) | |||||||||||||||||||||||
Balance, February 28, 2019 | $ | 5,167.9 | $ | 2,920.9 | $ | 8,088.8 | |||||||||||||||||
Purchase accounting allocations (1)
|
— | 58.8 | 58.8 | ||||||||||||||||||||
Black Velvet Divestiture | — | (72.2) | (72.2) | ||||||||||||||||||||
Foreign currency translation adjustments | 0.2 | (9.5) | (9.3) | ||||||||||||||||||||
Reclassified (to) from assets held for sale (2)
|
(4.7) | (304.3) | (309.0) | ||||||||||||||||||||
Balance, February 29, 2020 | 5,163.4 | 2,593.7 | 7,757.1 | ||||||||||||||||||||
Purchase accounting allocations (3)
|
— | 14.3 | 14.3 | ||||||||||||||||||||
Foreign currency translation adjustments | (38.7) | 15.9 | (22.8) | ||||||||||||||||||||
Reclassified (to) from assets held for sale (2)
|
0.9 | 44.0 | 44.9 | ||||||||||||||||||||
Balance, February 28, 2021 | $ | 5,125.6 | $ | 2,667.9 | $ | 7,793.5 |
February 28, 2021 | February 29, 2020 | ||||||||||||||||||||||
Gross
Carrying Amount |
Net
Carrying Amount |
Gross
Carrying Amount |
Net
Carrying Amount |
||||||||||||||||||||
(in millions) | |||||||||||||||||||||||
Amortizable intangible assets | |||||||||||||||||||||||
Customer relationships | $ | 87.2 | $ | 26.3 | $ | 87.4 | $ | 31.8 | |||||||||||||||
Other | 21.1 | 0.2 | 20.2 | 0.3 | |||||||||||||||||||
Total | $ | 108.3 | 26.5 | $ | 107.6 | 32.1 | |||||||||||||||||
Nonamortizable intangible assets | |||||||||||||||||||||||
Trademarks | 2,705.6 | 2,686.8 | |||||||||||||||||||||
Total intangible assets | $ | 2,732.1 | $ | 2,718.9 |
Constellation Brands, Inc. FY 2021 Form 10-K |
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(in millions) | |||||
2022 | $ | 5.1 | |||
2023 | $ | 3.2 | |||
2024 | $ | 1.4 | |||
2025 | $ | 1.4 | |||
2026 | $ | 1.4 | |||
Thereafter | $ | 14.0 |
February 28, 2021 | February 29, 2020 | ||||||||||||||||||||||
Carrying Value | Ownership Percentage | Carrying Value | Ownership Percentage | ||||||||||||||||||||
(in millions) | |||||||||||||||||||||||
Canopy Equity Method Investment | $ | 2,578.8 | 38.1 | % | $ | 2,911.7 | 35.3 | % | |||||||||||||||
Other equity method investments (1)
|
209.6 |
20%-50%
|
182.2 |
20%-50%
|
|||||||||||||||||||
$ | 2,788.4 | $ | 3,093.9 |
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For the Years Ended | |||||||||||||||||
February 28,
2021 |
February 29,
2020 |
February 28,
2019 |
|||||||||||||||
(in millions) | |||||||||||||||||
Equity in earnings (losses) from Canopy and related activities | $ | (679.0) | $ | (575.9) | $ | (2.6) |
Tranche A Warrants (1)
|
Tranche B Warrants (1)
|
||||||||||
Exercise price | $ | 50.40 | $ | 76.68 | |||||||
Valuation date stock price | $ | 53.36 | $ | 53.36 | |||||||
Remaining contractual term | 4.3 years | 7.3 years | |||||||||
Expected volatility | 66.7 | % | 66.7 | % | |||||||
Risk-free interest rate | 1.4 | % | 1.4 | % | |||||||
Expected dividend yield | 0.0 | % | 0.0 | % |
Constellation Brands, Inc. FY 2021 Form 10-K |
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February 28, 2021 | February 29, 2020 | ||||||||||
(in millions) | |||||||||||
Current assets | $ | 1,706.6 | $ | 2,232.9 | |||||||
Noncurrent assets | $ | 3,251.5 | $ | 3,751.6 | |||||||
Current liabilities | $ | 273.7 | $ | 322.0 | |||||||
Noncurrent liabilities | $ | 1,308.8 | $ | 867.9 | |||||||
Noncontrolling interests | $ | 179.0 | $ | 210.5 |
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For the Years Ended | |||||||||||||||||
February 28, 2021 | February 29, 2020 |
February 28, 2019 (1)
|
|||||||||||||||
(in millions) | |||||||||||||||||
Net sales | $ | 378.6 | $ | 290.2 | $ | 48.6 | |||||||||||
Gross profit (loss) | $ | (14.1) | $ | 45.4 | $ | 11.2 | |||||||||||
Net income (loss) | $ | (1,775.3) | $ | (327.0) | $ | (39.6) | |||||||||||
Net income (loss) attributable to Canopy | $ | (1,750.0) | $ | (312.6) | $ | (27.8) |
February 28,
2021 |
February 29,
2020 |
||||||||||
(in millions) | |||||||||||
Salaries, commissions, and payroll benefits and withholdings | $ | 232.1 | $ | 182.2 | |||||||
Promotions and advertising | 159.9 | 191.7 | |||||||||
Accrued interest | 93.4 | 94.3 | |||||||||
Operating lease liability | 68.8 | 76.6 | |||||||||
Income taxes payable | 24.7 | 24.9 | |||||||||
Derivative liabilities | 10.9 | 61.1 | |||||||||
Other | 190.1 | 149.6 | |||||||||
$ | 779.9 | $ | 780.4 |
February 28, 2021 |
February 29,
2020 |
||||||||||||||||||||||
Current | Long-term | Total | Total | ||||||||||||||||||||
(in millions) | |||||||||||||||||||||||
Short-term borrowings | |||||||||||||||||||||||
Commercial paper | $ | — | $ | 238.9 | |||||||||||||||||||
$ | — | $ | 238.9 | ||||||||||||||||||||
Long-term debt | |||||||||||||||||||||||
Term loan credit facilities | $ | 24.6 | $ | 429.8 | $ | 454.4 | $ | 1,295.7 | |||||||||||||||
Senior notes | — | 9,972.4 | 9,972.4 | 10,624.7 | |||||||||||||||||||
Other | 4.6 | 10.9 | 15.5 | 25.3 | |||||||||||||||||||
$ | 29.2 | $ | 10,413.1 | $ | 10,442.3 | $ | 11,945.7 |
Constellation Brands, Inc. FY 2021 Form 10-K |
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Constellation Brands, Inc. FY 2021 Form 10-K |
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Amount | Maturity | ||||||||||
(in millions) | |||||||||||
2020 Credit Agreement | |||||||||||
Revolving credit facility (1) (2)
|
$ | 2,000.0 | Sept 14, 2023 | ||||||||
March 2020 Term Credit Agreement | |||||||||||
2019 Five-Year Term Facility (1) (3)
|
$ | 491.3 | Jun 28, 2024 |
Constellation Brands, Inc. FY 2021 Form 10-K |
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2020 Credit Agreement | March 2020 Term Credit Agreement | ||||||||||||||||||||||
Revolving
credit facility |
2019 Five-Year Term Facility (1)
|
||||||||||||||||||||||
(in millions) | |||||||||||||||||||||||
Outstanding borrowings | $ | — | $ | 454.4 | |||||||||||||||||||
Interest rate | — | % | 1.0 | % | |||||||||||||||||||
LIBOR margin | — | % | 0.88 | % | |||||||||||||||||||
Outstanding letters of credit | $ | 11.7 | |||||||||||||||||||||
Remaining borrowing capacity (2)
|
$ | 1,988.3 |
(in millions) | |||||||||||
Outstanding borrowings (1)
|
$ | 238.9 | |||||||||
Weighted average annual interest rate | 1.9 | % | |||||||||
Weighted average remaining term | 8 days |
Constellation Brands, Inc. FY 2021 Form 10-K |
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Date of |
Outstanding Balance (1)
|
||||||||||||||||||||||||||||||||||
Principal | Issuance | Maturity |
Interest
Payments |
February 28,
2021 |
February 29,
2020 |
||||||||||||||||||||||||||||||
(in millions) | |||||||||||||||||||||||||||||||||||
3.75% Senior Notes (2) (3)
|
$ | 500.0 | May 2013 | May 2021 | May/Nov | $ | — | $ | 499.2 | ||||||||||||||||||||||||||
4.25% Senior Notes (2) (4)
|
$ | 1,050.0 | May 2013 | May 2023 | May/Nov | 1,047.5 | 1,046.4 | ||||||||||||||||||||||||||||
4.75% Senior Notes (2) (4)
|
$ | 400.0 | Nov 2014 | Nov 2024 | May/Nov | 397.6 | 397.0 | ||||||||||||||||||||||||||||
4.75% Senior Notes (2) (4)
|
$ | 400.0 | Dec 2015 | Dec 2025 | Jun/Dec | 396.9 | 396.3 | ||||||||||||||||||||||||||||
3.70% Senior Notes (2) (5)
|
$ | 600.0 | Dec 2016 | Dec 2026 | Jun/Dec | 596.5 | 595.9 | ||||||||||||||||||||||||||||
2.70% Senior Notes (2) (5)
|
$ | 500.0 | May 2017 | May 2022 | May/Nov | 498.8 | 497.8 | ||||||||||||||||||||||||||||
3.50% Senior Notes (2) (5)
|
$ | 500.0 | May 2017 | May 2027 | May/Nov | 496.5 | 496.1 | ||||||||||||||||||||||||||||
4.50% Senior Notes (2) (5)
|
$ | 500.0 | May 2017 | May 2047 | May/Nov | 493.1 | 493.0 | ||||||||||||||||||||||||||||
2.25% Senior Notes (2) (6)
|
$ | 700.0 | Nov 2017 | Nov 2020 | May/Nov | — | 698.7 | ||||||||||||||||||||||||||||
2.65% Senior Notes (2) (5)
|
$ | 700.0 | Nov 2017 | Nov 2022 | May/Nov | 697.1 | 695.5 | ||||||||||||||||||||||||||||
3.20% Senior Notes (2) (5)
|
$ | 600.0 | Feb 2018 | Feb 2023 | Feb/Aug | 598.0 | 597.0 | ||||||||||||||||||||||||||||
3.60% Senior Notes (2) (5)
|
$ | 700.0 | Feb 2018 | Feb 2028 | Feb/Aug | 695.0 | 694.3 | ||||||||||||||||||||||||||||
4.10% Senior Notes (2) (5)
|
$ | 600.0 | Feb 2018 | Feb 2048 | Feb/Aug | 592.3 | 592.1 | ||||||||||||||||||||||||||||
Senior Floating Rate Notes (2) (7)
|
$ | 650.0 | Oct 2018 | Nov 2021 | Quarterly | — | 647.9 | ||||||||||||||||||||||||||||
4.40% Senior Notes (2) (5)
|
$ | 500.0 | Oct 2018 | Nov 2025 | May/Nov | 496.6 | 496.0 | ||||||||||||||||||||||||||||
4.65% Senior Notes (2) (5)
|
$ | 500.0 | Oct 2018 | Nov 2028 | May/Nov | 495.6 | 495.2 | ||||||||||||||||||||||||||||
5.25% Senior Notes (2) (5)
|
$ | 500.0 | Oct 2018 | Nov 2048 | May/Nov | 493.1 | 493.0 | ||||||||||||||||||||||||||||
3.15% Senior Notes (2) (5)
|
$ | 800.0 | Jul 2019 | Aug 2029 | Feb/Aug | 793.9 | 793.3 | ||||||||||||||||||||||||||||
2.875% Senior Notes (2) (5)
|
$ | 600.0 | Apr 2020 | May 2030 | May/Nov | 594.3 | — | ||||||||||||||||||||||||||||
3.75% Senior Notes (2) (5)
|
$ | 600.0 | Apr 2020 | May 2050 | May/Nov | 589.6 | — | ||||||||||||||||||||||||||||
$ | 9,972.4 | $ | 10,624.7 |
Redemption | |||||||||||
Stated
Redemption Date |
Stated
Basis Points |
||||||||||
3.70% Senior Notes due December 2026 | Sept 2026 | 25 | |||||||||
2.70% Senior Notes due May 2022 | Apr 2022 | 15 |
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3.50% Senior Notes due May 2027 | Feb 2027 | 20 | |||||||||
4.50% Senior Notes due May 2047 | Nov 2046 | 25 | |||||||||
2.65% Senior Notes due November 2022 | Oct 2022 | 15 | |||||||||
3.20% Senior Notes due February 2023 | Jan 2023 | 13 | |||||||||
3.60% Senior Notes due February 2028 | Nov 2027 | 15 | |||||||||
4.10% Senior Notes due February 2048 | Aug 2047 | 20 | |||||||||
4.40% Senior Notes due November 2025 | Sept 2025 | 20 | |||||||||
4.65% Senior Notes due November 2028 | Aug 2028 | 25 | |||||||||
5.25% Senior Notes due November 2048 | May 2048 | 30 | |||||||||
3.15% Senior Notes due August 2029 | May 2029 | 20 | |||||||||
2.875% Senior Notes due May 2030 | Feb 2030 | 35 | |||||||||
3.75% Senior Notes due May 2050 | Nov 2049 | 40 |
(in millions) | |||||
2022 | $ | 29.2 | |||
2023 | 1,829.2 | ||||
2024 | 1,078.7 | ||||
2025 | 782.8 | ||||
2026 | 900.0 | ||||
Thereafter | 5,900.0 | ||||
$ | 10,519.9 |
Constellation Brands, Inc. FY 2021 Form 10-K |
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For the Years Ended | |||||||||||||||||
February 28,
2021 |
February 29,
2020 |
February 28,
2019 |
|||||||||||||||
(in millions) | |||||||||||||||||
Domestic | $ | 495.2 | $ | (2,230.1) | $ | 1,615.9 | |||||||||||
Foreign | 2,047.7 | 1,284.9 | 2,529.1 | ||||||||||||||
$ | 2,542.9 | $ | (945.2) | $ | 4,145.0 |
For the Years Ended | |||||||||||||||||
February 28,
2021 |
February 29,
2020 |
February 28,
2019 |
|||||||||||||||
(in millions) | |||||||||||||||||
Current | |||||||||||||||||
Federal | $ | 74.0 | $ | 66.5 | $ | 4.1 | |||||||||||
State | 19.1 | 12.1 | 15.7 | ||||||||||||||
Foreign | 81.6 | 108.5 | 239.2 | ||||||||||||||
Total current | 174.7 | 187.1 | 259.0 | ||||||||||||||
Deferred | |||||||||||||||||
Federal | 152.8 | (459.9) | 223.9 | ||||||||||||||
State | 28.3 | (118.3) | 75.0 | ||||||||||||||
Foreign | 155.3 | (575.5) | 128.0 | ||||||||||||||
Total deferred | 336.4 | (1,153.7) | 426.9 | ||||||||||||||
Income tax provision (benefit) | $ | 511.1 | $ | (966.6) | $ | 685.9 |
Constellation Brands, Inc. FY 2021 Form 10-K |
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For the Years Ended | |||||||||||||||||||||||||||||||||||
February 28, 2021 | February 29, 2020 | February 28, 2019 | |||||||||||||||||||||||||||||||||
Amount |
% of
Pretax Income (Loss) |
Amount |
% of
Pretax Income (Loss) |
Amount |
% of
Pretax Income (Loss) |
||||||||||||||||||||||||||||||
(in millions, except % of pretax income (loss) data) | |||||||||||||||||||||||||||||||||||
Income tax provision (benefit) at statutory rate | $ | 534.0 | 21.0 | % | $ | (198.5) | 21.0 | % | $ | 870.5 | 21.0 | % | |||||||||||||||||||||||
State and local income taxes, net of federal income tax benefit (1)
|
39.0 | 1.5 | % | (82.3) | 8.7 | % | 81.3 | 2.0 | % | ||||||||||||||||||||||||||
Net income tax provision (benefit) from legislative changes (2)
|
10.9 | 0.4 | % | (547.4) | 57.9 | % | (37.6) | (0.9 | %) | ||||||||||||||||||||||||||
Earnings taxed at other than U.S. statutory rate (3)
|
(84.4) | (3.2 | %) | (46.5) | 5.0 | % | (81.0) | (1.9 | %) | ||||||||||||||||||||||||||
Excess tax benefits from stock-based compensation awards (4)
|
(29.4) | (1.2 | %) | (56.2) | 5.9 | % | (82.9) | (2.0 | %) | ||||||||||||||||||||||||||
Net income tax provision (benefit) recognized for adjustment to valuation allowance | 27.1 | 1.1 | % | (32.8) | 3.5 | % | (74.1) | (1.8 | %) | ||||||||||||||||||||||||||
Miscellaneous items, net | 13.9 | 0.5 | % | (2.9) | 0.3 | % | 9.7 | 0.1 | % | ||||||||||||||||||||||||||
Income tax provision (benefit) at effective rate | $ | 511.1 | 20.1 | % | $ | (966.6) | 102.3 | % | $ | 685.9 | 16.5 | % |
Constellation Brands, Inc. FY 2021 Form 10-K |
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February 28,
2021 |
February 29,
2020 |
||||||||||
(in millions) | |||||||||||
Deferred tax assets | |||||||||||
Intangible assets | $ | 1,852.0 | $ | 2,045.8 | |||||||
Loss carryforwards | 233.1 | 225.9 | |||||||||
Stock-based compensation | 30.1 | 75.6 | |||||||||
Lease liabilities | 83.1 | 89.2 | |||||||||
Inventory | 26.6 | 32.4 | |||||||||
Investments in unconsolidated investees | 36.7 | 106.1 | |||||||||
Other accruals | 33.7 | 35.0 | |||||||||
Gross deferred tax assets | 2,295.3 | 2,610.0 | |||||||||
Valuation allowances | (78.6) | (54.1) | |||||||||
Deferred tax assets, net | 2,216.7 | 2,555.9 | |||||||||
Deferred tax liabilities | |||||||||||
Property, plant, and equipment | (200.3) | (175.5) | |||||||||
Provision for unremitted earnings | (23.0) | (27.5) | |||||||||
Right-of-use assets | (70.6) | (80.5) | |||||||||
Total deferred tax liabilities | (293.9) | (283.5) | |||||||||
Deferred tax assets (liabilities), net | $ | 1,922.8 | $ | 2,272.4 |
Constellation Brands, Inc. FY 2021 Form 10-K |
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For the Years Ended | |||||||||||||||||
February 28,
2021 |
February 29,
2020 |
February 28,
2019 |
|||||||||||||||
(in millions) | |||||||||||||||||
Balance as of March 1 | $ | 249.4 | $ | 224.3 | $ | 89.3 | |||||||||||
Increases as a result of tax positions taken during a prior period | 3.1 | 11.4 | 56.4 | ||||||||||||||
Decreases as a result of tax positions taken during a prior period | (15.4) | (14.8) | (1.4) | ||||||||||||||
Increases as a result of tax positions taken during the current period | 15.2 | 29.0 | 88.8 | ||||||||||||||
Decreases related to settlements with tax authorities | (10.2) | (0.1) | (0.8) | ||||||||||||||
Decreases related to lapse of applicable statute of limitations | (6.0) | (0.4) | (8.0) | ||||||||||||||
Balance as of last day of February | $ | 236.1 | $ | 249.4 | $ | 224.3 |
February 28,
2021 |
February 29,
2020 |
||||||||||
(in millions) | |||||||||||
Deferred income taxes | $ | 569.7 | $ | 384.0 | |||||||
Operating lease liability | 471.1 | 483.6 | |||||||||
Unrecognized tax benefit liabilities | 268.9 | 276.2 | |||||||||
Long-term income tax payable | 86.1 | 96.2 | |||||||||
Other | 97.7 | 86.3 | |||||||||
$ | 1,493.5 | $ | 1,326.3 |
Constellation Brands, Inc. FY 2021 Form 10-K |
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Balance Sheet Classification |
February 28,
2021 |
February 29,
2020 |
||||||||||||
(in millions) | ||||||||||||||
Assets | ||||||||||||||
Operating lease | Other assets | $ | 477.9 | $ | 481.4 | |||||||||
Finance lease | Property, plant, and equipment | 17.0 | 26.6 | |||||||||||
Total right-of-use assets | $ | 494.9 | $ | 508.0 | ||||||||||
Liabilities | ||||||||||||||
Current: | ||||||||||||||
Operating lease | Other accrued expenses and liabilities | $ | 68.8 | $ | 76.6 | |||||||||
Finance lease | Current maturities of long-term debt | 4.6 | 11.7 | |||||||||||
Non-current: | ||||||||||||||
Operating lease | Deferred income taxes and other liabilities | 471.1 | 483.6 | |||||||||||
Finance lease | Long-term debt, less current maturities | 10.9 | 13.6 | |||||||||||
Total lease liabilities | $ | 555.4 | $ | 585.5 |
For the Years Ended | |||||||||||
|
February 28,
2021 |
February 29,
2020 |
|||||||||
(in millions) | |||||||||||
Operating lease cost | $ | 93.4 | $ | 98.9 | |||||||
Finance lease cost: | |||||||||||
Amortization of right-of-use assets | 11.0 | 12.2 | |||||||||
Interest on lease liabilities | 0.5 | 0.7 | |||||||||
Short-term lease cost | 9.2 | 8.6 | |||||||||
Variable lease cost (1)
|
216.5 | 403.3 | |||||||||
Total lease cost | $ | 330.6 | $ | 523.7 |
Constellation Brands, Inc. FY 2021 Form 10-K |
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Operating Leases | Finance Leases | ||||||||||||||||
(in millions) | |||||||||||||||||
2022 | $ | 84.6 | $ | 4.8 | |||||||||||||
2023 | 73.3 | 4.7 | |||||||||||||||
2024 | 66.7 | 4.2 | |||||||||||||||
2025 | 54.6 | 2.1 | |||||||||||||||
2026 | 44.1 | — | |||||||||||||||
Thereafter | 336.0 | — | |||||||||||||||
Total lease payments | 659.3 | 15.8 | |||||||||||||||
Less: Interest | (119.4) | (0.3) | |||||||||||||||
Total lease liabilities | $ | 539.9 | $ | 15.5 |
|
For the Years Ended | ||||||||||
February 28,
2021 |
February 29,
2020 |
||||||||||
(in millions) | |||||||||||
Cash paid for amounts included in the measurement of lease liabilities: | |||||||||||
Operating cash flows from operating leases | $ | 93.9 | $ | 100.7 | |||||||
Operating cash flows from finance leases | $ | 0.5 | $ | 0.7 | |||||||
Financing cash flows from finance leases | $ | 10.5 | $ | 13.8 | |||||||
Right-of-use assets obtained in exchange for new lease liabilities: | |||||||||||
Operating leases | $ | 66.3 | $ | 34.3 | |||||||
Finance leases | $ | 11.6 | $ | 10.7 | |||||||
February 28, 2021 | February 29, 2020 | ||||||||||
Weighted-average remaining lease term: (1)
|
|||||||||||
Operating leases | 12.8 years | 11.7 years | |||||||||
Finance leases | 2.9 years | 3.2 years | |||||||||
Weighted-average discount rate: | |||||||||||
Operating leases | 3.2 | % | 3.5 | % | |||||||
Finance leases | 1.2 | % | 2.6 | % |
Constellation Brands, Inc. FY 2021 Form 10-K |
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Type | Length of Commitment | Amount | |||||||||
(in millions) | |||||||||||
Raw materials and supplies (1)
|
Packaging, grapes, malts, corn, and hops | through December 2037 | $ | 4,063.8 | |||||||
Contract services | Transportation, marketing, and warehousing services, and IT and energy contracts | through December 2030 | 816.5 | ||||||||
Capital expenditures (2)
|
Property, plant, and equipment and contractor and manufacturing services | through January 2024 | 243.7 | ||||||||
In-process inventories | Bulk wine and spirits | through April 2025 | 75.3 | ||||||||
Other | Finished wine case goods | through May 2029 | 26.4 | ||||||||
$ | 5,225.7 |
Constellation Brands, Inc. FY 2021 Form 10-K |
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Constellation Brands, Inc. FY 2021 Form 10-K |
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Common Stock | Treasury Stock | ||||||||||||||||||||||||||||
Class A | Class B | Class 1 | Class A | Class B | |||||||||||||||||||||||||
Balance at February 28, 2018 | 258,718,356 | 28,335,387 | 1,970 | 90,743,239 | 5,005,800 | ||||||||||||||||||||||||
Retirement of treasury shares (1)
|
(74,000,000) | — | — | (74,000,000) | — | ||||||||||||||||||||||||
Share repurchases | — | — | — | 2,352,145 | — | ||||||||||||||||||||||||
Conversion of shares | 12,968 | (12,968) | — | — | — | ||||||||||||||||||||||||
Exercise of stock options | 1,008,854 | — | 1,147,654 | — | — | ||||||||||||||||||||||||
Employee stock purchases | — | — | — | (76,844) | — | ||||||||||||||||||||||||
Grant of restricted stock awards | — | — | — | (3,914) | — | ||||||||||||||||||||||||
Vesting of restricted stock units (2)
|
— | — | — | (24,308) | — | ||||||||||||||||||||||||
Vesting of performance share units (2)
|
— | — | — | (62,352) | — | ||||||||||||||||||||||||
Balance at February 28, 2019 | 185,740,178 | 28,322,419 | 1,149,624 | 18,927,966 | 5,005,800 | ||||||||||||||||||||||||
Share repurchases | — | — | — | 265,593 | — | ||||||||||||||||||||||||
Conversion of shares | 350,567 | (22,213) | (328,354) | — | — | ||||||||||||||||||||||||
Exercise of stock options (3)
|
— | — | 870,957 | (747,527) | — | ||||||||||||||||||||||||
Employee stock purchases | — | — | — | (69,324) | — | ||||||||||||||||||||||||
Vesting of restricted stock units (2)
|
— | — | — | (91,311) | — | ||||||||||||||||||||||||
Vesting of performance share units (2)
|
— | — | — | (29,015) | — | ||||||||||||||||||||||||
Cancellation of restricted shares | — | — | — | 444 | — | ||||||||||||||||||||||||
Balance at February 29, 2020 | 186,090,745 | 28,300,206 | 1,692,227 | 18,256,826 | 5,005,800 | ||||||||||||||||||||||||
Conversion of shares | 1,113,535 | (29,918) | (1,083,617) | — | — | ||||||||||||||||||||||||
Exercise of stock options (3)
|
— | — | 4,326 | (1,020,853) | — | ||||||||||||||||||||||||
Employee stock purchases | — | — | — | (67,801) | — | ||||||||||||||||||||||||
Vesting of restricted stock units (2)
|
— | — | — | (80,287) | — | ||||||||||||||||||||||||
Vesting of performance share units (2)
|
— | — | — | (17,335) | — | ||||||||||||||||||||||||
Balance at February 28, 2021 | 187,204,280 | 28,270,288 | 612,936 | 17,070,550 | 5,005,800 |
For the Years Ended | |||||||||||||||||
February 28,
2021 |
February 29,
2020 |
February 28,
2019 |
|||||||||||||||
Restricted Stock Units | 37,933 | 49,900 | 15,409 | ||||||||||||||
Performance Share Units | 9,433 | 17,439 | 44,016 |
Constellation Brands, Inc. FY 2021 Form 10-K |
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Class A Common Shares Repurchased | |||||||||||||||||||||||||||||||||||||||||||||||
Repurchase
Authorization |
For the Year Ended
February 28, 2021 |
For the Year Ended
February 29, 2020 |
For the Year Ended
February 28, 2019 |
||||||||||||||||||||||||||||||||||||||||||||
Date |
Amount
Authorized |
Dollar
Value |
Number of
Shares |
Dollar
Value |
Number of
Shares |
Dollar
Value |
Number of
Shares |
||||||||||||||||||||||||||||||||||||||||
(in millions, except share data) | |||||||||||||||||||||||||||||||||||||||||||||||
2018 Authorization (1)
|
Jan 2018 | $3,000.0 | $ | — | — | $ | 50.0 | 265,593 | $ | 504.3 | 2,352,145 | ||||||||||||||||||||||||||||||||||||
2021 Authorization (2)
|
Jan 2021 | $2,000.0 | — | — | — | — | — | — | |||||||||||||||||||||||||||||||||||||||
$ | — | — | $ | 50.0 | 265,593 | $ | 504.3 | 2,352,145 |
For the Years Ended | |||||||||||||||||
February 28,
2021 |
February 29,
2020 |
February 28,
2019 |
|||||||||||||||
(in millions) | |||||||||||||||||
Total compensation cost recognized in our results of operations | $ | 63.0 | $ | 60.4 | $ | 64.1 | |||||||||||
Income tax benefit related thereto recognized in our results of operations | $ | 9.2 | $ | 9.5 | $ | 11.6 |
Constellation Brands, Inc. FY 2021 Form 10-K |
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For the Years Ended | |||||||||||||||||||||||||||||||||||
February 28, 2021 | February 29, 2020 | February 28, 2019 | |||||||||||||||||||||||||||||||||
Number
of Options |
Weighted
Average Exercise Price |
Number
of Options |
Weighted
Average Exercise Price |
Number
of Options |
Weighted
Average Exercise Price |
||||||||||||||||||||||||||||||
Outstanding as of March 1 | 4,525,418 | $ | 108.87 | 5,691,219 | $ | 81.87 | 7,444,701 | $ | 56.33 | ||||||||||||||||||||||||||
Granted | 973,286 | $ | 154.62 | 639,957 | $ | 206.76 | 540,640 | $ | 227.91 | ||||||||||||||||||||||||||
Exercised | (1,025,179) | $ | 47.42 | (1,618,484) | $ | 41.77 | (2,156,508) | $ | 23.55 | ||||||||||||||||||||||||||
Forfeited | (56,897) | $ | 185.59 | (175,917) | $ | 201.44 | (133,250) | $ | 187.84 | ||||||||||||||||||||||||||
Expired | (16,821) | $ | 221.16 | (11,357) | $ | 224.07 | (4,364) | $ | 175.86 | ||||||||||||||||||||||||||
Outstanding as of last day of February | 4,399,807 | $ | 131.89 | 4,525,418 | $ | 108.87 | 5,691,219 | $ | 81.87 | ||||||||||||||||||||||||||
Exercisable | 2,754,888 | $ | 104.94 | 3,330,164 | $ | 75.61 | 4,456,486 | $ | 53.18 |
For the Years Ended | |||||||||||||||||
February 28,
2021 |
February 29,
2020 |
February 28,
2019 |
|||||||||||||||
(in millions) | |||||||||||||||||
Fair value of stock options vested | $ | 21.1 | $ | 21.1 | $ | 22.8 | |||||||||||
Intrinsic value of stock options exercised | $ | 142.1 | $ | 255.0 | $ | 348.5 | |||||||||||
Tax benefit realized from stock options exercised | $ | 33.9 | $ | 60.4 | $ | 82.6 |
For the Years Ended | |||||||||||||||||
February 28,
2021 |
February 29,
2020 |
February 28,
2019 |
|||||||||||||||
Grant-date fair value | $ | 31.26 | $ | 44.90 | $ | 53.06 | |||||||||||
Expected life (1)
|
6.3 years | 6.0 years | 5.9 years | ||||||||||||||
Expected volatility (2)
|
26.6 | % | 22.1 | % | 22.3 | % | |||||||||||
Risk-free interest rate (3)
|
0.5 | % | 2.5 | % | 2.9 | % | |||||||||||
Expected dividend yield (4)
|
1.9 | % | 1.5 | % | 1.3 | % |
Constellation Brands, Inc. FY 2021 Form 10-K |
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Constellation Brands, Inc. FY 2021 Form 10-K |
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For the Years Ended | |||||||||||||||||
February 28,
2021 |
February 29,
2020 |
February 28,
2019 |
|||||||||||||||
(in millions) | |||||||||||||||||
Restricted stock awards | $ | — | $ | 0.7 | $ | 0.8 | |||||||||||
Restricted stock units | $ | 19.2 | $ | 29.9 | $ | 9.0 | |||||||||||
Performance share units | $ | 4.3 | $ | 9.9 | $ | 24.4 |
For the Years Ended | |||||||||||||||||
February 28,
2021 |
February 29,
2020 |
February 28,
2019 |
|||||||||||||||
Grant-date fair value | $ | 202.53 | $ | 319.56 | $ | 322.42 | |||||||||||
Grant-date price | $ | 153.02 | $ | 205.46 | $ | 228.26 | |||||||||||
Performance period | 2.9 years | 2.8 years | 2.9 years | ||||||||||||||
Expected volatility (1)
|
31.7 | % | 23.1 | % | 20.7 | % | |||||||||||
Risk-free interest rate (2)
|
0.2 | % | 2.3 | % | 2.6 | % | |||||||||||
Expected dividend yield (3)
|
0.0 | % | 0.0 | % | 0.0 | % |
Constellation Brands, Inc. FY 2021 Form 10-K |
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For the Years Ended | |||||||||||||||||||||||||||||||||||
February 28, 2021 | February 29, 2020 | February 28, 2019 | |||||||||||||||||||||||||||||||||
Common Stock | Common Stock | Common Stock | |||||||||||||||||||||||||||||||||
Class A | Class B | Class A | Class B | Class A | Class B | ||||||||||||||||||||||||||||||
(in millions, except per share data) | |||||||||||||||||||||||||||||||||||
Net income (loss) attributable to CBI allocated – basic | $ | 1,777.2 | $ | 220.8 | $ | (10.2) | $ | (1.6) | $ | 3,049.5 | $ | 386.4 | |||||||||||||||||||||||
Conversion of Class B common shares into Class A common shares | 220.8 | — | — | — | 386.4 | — | |||||||||||||||||||||||||||||
Effect of stock-based awards on allocated net income (loss) | — | (1.5) | — | — | — | (8.3) | |||||||||||||||||||||||||||||
Net income (loss) attributable to CBI allocated – diluted | $ | 1,998.0 | $ | 219.3 | $ | (10.2) | $ | (1.6) | $ | 3,435.9 | $ | 378.1 | |||||||||||||||||||||||
Weighted average common shares outstanding – basic | 170.239 | 23.280 | 168.329 | 23.313 | 167.249 | 23.321 | |||||||||||||||||||||||||||||
Conversion of Class B common shares into Class A common shares (1)
|
23.280 | — | — | — | 23.321 | — | |||||||||||||||||||||||||||||
Stock-based awards, primarily stock options (1)
|
1.789 | — | — | — | 4.962 | — | |||||||||||||||||||||||||||||
Weighted average common shares outstanding – diluted | 195.308 | 23.280 | 168.329 | 23.313 | 195.532 | 23.321 | |||||||||||||||||||||||||||||
Net income (loss) per common share attributable to CBI – basic | $ | 10.44 | $ | 9.48 | $ | (0.07) | $ | (0.07) | $ | 18.24 | $ | 16.57 | |||||||||||||||||||||||
Net income (loss) per common share attributable to CBI – diluted | $ | 10.23 | $ | 9.42 | $ | (0.07) | $ | (0.07) | $ | 17.57 | $ | 16.21 |
Constellation Brands, Inc. FY 2021 Form 10-K |
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Before Tax
Amount |
Tax (Expense)
Benefit |
Net of Tax
Amount |
|||||||||||||||
(in millions) | |||||||||||||||||
For the Year Ended February 28, 2019 | |||||||||||||||||
Other comprehensive income (loss) attributable to CBI: | |||||||||||||||||
Foreign currency translation adjustments: | |||||||||||||||||
Net gain (loss) | $ | (194.2) | $ | — | $ | (194.2) | |||||||||||
Reclassification adjustments | — | — | — | ||||||||||||||
Net gain (loss) recognized in other comprehensive income (loss) | (194.2) | — | (194.2) | ||||||||||||||
Unrealized gain (loss) on cash flow hedges: | |||||||||||||||||
Net derivative gain (loss) | 8.3 | 5.0 | 13.3 | ||||||||||||||
Reclassification adjustments | (3.6) | 0.9 | (2.7) | ||||||||||||||
Net gain (loss) recognized in other comprehensive income (loss) | 4.7 | 5.9 | 10.6 | ||||||||||||||
Unrealized gain (loss) on AFS debt securities: | |||||||||||||||||
Net AFS debt securities gain (loss) | (0.4) | 0.1 | (0.3) | ||||||||||||||
Reclassification adjustments | 1.9 | 0.9 | 2.8 | ||||||||||||||
Net gain (loss) recognized in other comprehensive income (loss) | 1.5 | 1.0 | 2.5 | ||||||||||||||
Pension/postretirement adjustments: | |||||||||||||||||
Net actuarial gain (loss) | 0.4 | (0.1) | 0.3 | ||||||||||||||
Reclassification adjustments | 0.3 | (0.1) | 0.2 | ||||||||||||||
Net gain (loss) recognized in other comprehensive income (loss) | 0.7 | (0.2) | 0.5 | ||||||||||||||
Share of OCI of equity method investments: | |||||||||||||||||
Net gain (loss) | 38.7 | (9.1) | 29.6 | ||||||||||||||
Reclassification adjustments | — | — | — | ||||||||||||||
Net gain (loss) recognized in other comprehensive income (loss) | 38.7 | (9.1) | 29.6 | ||||||||||||||
Other comprehensive income (loss) attributable to CBI | $ | (148.6) | $ | (2.4) | $ | (151.0) | |||||||||||
For the Year Ended February 29, 2020 | |||||||||||||||||
Other comprehensive income (loss) attributable to CBI: | |||||||||||||||||
Foreign currency translation adjustments: | |||||||||||||||||
Net gain (loss) | $ | 83.4 | $ | — | $ | 83.4 | |||||||||||
Reclassification adjustments | (22.6) | — | (22.6) | ||||||||||||||
Net gain (loss) recognized in other comprehensive income (loss) | 60.8 | — | 60.8 | ||||||||||||||
Unrealized gain (loss) on cash flow hedges: | |||||||||||||||||
Net derivative gain (loss) | 48.0 | 6.4 | 54.4 | ||||||||||||||
Reclassification adjustments | (15.3) | (1.7) | (17.0) | ||||||||||||||
Net gain (loss) recognized in other comprehensive income (loss) | 32.7 | 4.7 | 37.4 | ||||||||||||||
Pension/postretirement adjustments: | |||||||||||||||||
Net actuarial gain (loss) | (3.1) | 0.9 | (2.2) | ||||||||||||||
Reclassification adjustments | 1.8 | (0.1) | 1.7 | ||||||||||||||
Net gain (loss) recognized in other comprehensive income (loss) | (1.3) | 0.8 | (0.5) | ||||||||||||||
Share of OCI of equity method investments: | |||||||||||||||||
Net gain (loss) | (13.3) | 3.2 | (10.1) | ||||||||||||||
Reclassification adjustments | — | — | — | ||||||||||||||
Net gain (loss) recognized in other comprehensive income (loss) | (13.3) | 3.2 | (10.1) | ||||||||||||||
Other comprehensive income (loss) attributable to CBI | $ | 78.9 | $ | 8.7 | $ | 87.6 | |||||||||||
Constellation Brands, Inc. FY 2021 Form 10-K |
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Before Tax
Amount |
Tax (Expense)
Benefit |
Net of Tax
Amount |
|||||||||||||||
(in millions) | |||||||||||||||||
For the Year Ended February 28, 2021 | |||||||||||||||||
Other comprehensive income (loss) attributable to CBI: | |||||||||||||||||
Foreign currency translation adjustments: | |||||||||||||||||
Net gain (loss) | $ | (51.9) | $ | — | $ | (51.9) | |||||||||||
Reclassification adjustments | 5.1 | — | 5.1 | ||||||||||||||
Net gain (loss) recognized in other comprehensive income (loss) | (46.8) | — | (46.8) | ||||||||||||||
Unrealized gain (loss) on cash flow hedges: | |||||||||||||||||
Net derivative gain (loss) | (48.1) | 3.2 | (44.9) | ||||||||||||||
Reclassification adjustments | 28.8 | (2.9) | 25.9 | ||||||||||||||
Net gain (loss) recognized in other comprehensive income (loss) | (19.3) | 0.3 | (19.0) | ||||||||||||||
Pension/postretirement adjustments: | |||||||||||||||||
Net actuarial gain (loss) | (2.3) | 0.7 | (1.6) | ||||||||||||||
Reclassification adjustments | — | — | — | ||||||||||||||
Net gain (loss) recognized in other comprehensive income (loss) | (2.3) | 0.7 | (1.6) | ||||||||||||||
Share of OCI of equity method investments: | |||||||||||||||||
Net gain (loss) | (1.6) | (0.2) | (1.8) | ||||||||||||||
Reclassification adjustments | — | — | — | ||||||||||||||
Net gain (loss) recognized in other comprehensive income (loss) | (1.6) | (0.2) | (1.8) | ||||||||||||||
Other comprehensive income (loss) attributable to CBI | $ | (70.0) | $ | 0.8 | $ | (69.2) |
Foreign
Currency Translation Adjustments |
Net
Unrealized 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, 2020 | $ | (345.7) | $ | 62.5 | $ | (2.6) | $ | 19.5 | $ | (266.3) | |||||||||||||||||||||||||
Other comprehensive income (loss): | |||||||||||||||||||||||||||||||||||
Other comprehensive income (loss) before reclassification adjustments | (51.9) | (44.9) | (1.6) | (1.8) | (100.2) | ||||||||||||||||||||||||||||||
Amounts reclassified from accumulated other comprehensive income (loss) | 5.1 | 25.9 | — | — | 31.0 | ||||||||||||||||||||||||||||||
Other comprehensive income (loss) | (46.8) | (19.0) | (1.6) | (1.8) | (69.2) | ||||||||||||||||||||||||||||||
Balance, February 28, 2021 | $ | (392.5) | $ | 43.5 | $ | (4.2) | $ | 17.7 | $ | (335.5) |
For the Years Ended | |||||||||||||||||
February 28,
2021 |
February 29,
2020 |
February 28,
2019 |
|||||||||||||||
Southern Glazer’s Wine and Spirits | |||||||||||||||||
Net sales | 10.5 | % | 10.5 | % | 12.9 | % | |||||||||||
Accounts receivable | 28.7 | % | 27.2 | % | 30.8 | % |
Constellation Brands, Inc. FY 2021 Form 10-K |
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Constellation Brands, Inc. FY 2021 Form 10-K |
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For the Years Ended | |||||||||||||||||
February 28,
2021 |
February 29,
2020 |
February 28,
2019 |
|||||||||||||||
(in millions) | |||||||||||||||||
Cost of product sold | |||||||||||||||||
Recovery of (loss on) inventory write-down | $ | (70.4) | $ | 8.6 | $ | (3.3) | |||||||||||
Strategic business development costs | (29.8) | (124.5) | (6.0) | ||||||||||||||
COVID-19 incremental costs | (7.6) | — | — | ||||||||||||||
Flow through of inventory step-up | (0.4) | (1.5) | (4.9) | ||||||||||||||
Accelerated depreciation | (0.1) | (7.6) | (8.9) | ||||||||||||||
Settlements of undesignated commodity derivative contracts | 31.6 | 11.7 | (8.6) | ||||||||||||||
Net gain (loss) on undesignated commodity derivative contracts | 25.1 | (49.0) | 1.8 | ||||||||||||||
Total cost of product sold | (51.6) | (162.3) | (29.9) | ||||||||||||||
Selling, general, and administrative expenses | |||||||||||||||||
Restructuring and other strategic business development costs | (23.9) | (25.3) | (17.1) | ||||||||||||||
Net gain (loss) on foreign currency derivative contracts | (8.0) | (1.8) | (32.6) | ||||||||||||||
Transaction, integration, and other acquisition-related costs | (7.6) | (9.2) | (10.2) | ||||||||||||||
Impairment of intangible assets | (6.0) | (11.0) | (108.0) | ||||||||||||||
COVID-19 incremental costs | (4.8) | — | — | ||||||||||||||
Deferred compensation | — | — | (16.3) | ||||||||||||||
Other gains (losses) (1)
|
14.7 | 7.3 | 10.1 | ||||||||||||||
Total selling, general, and administrative expenses | (35.6) | (40.0) | (174.1) | ||||||||||||||
Impairment of assets held for sale | (24.0) | (449.7) | — | ||||||||||||||
Gain (loss) on sale of business | 14.2 | 74.1 | — | ||||||||||||||
Comparable Adjustments, Operating income (loss) | $ | (97.0) | $ | (577.9) | $ | (204.0) |
Constellation Brands, Inc. FY 2021 Form 10-K |
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For the Years Ended | |||||||||||||||||
February 28,
2021 |
February 29,
2020 |
February 28,
2019 |
|||||||||||||||
(in millions) | |||||||||||||||||
Beer | |||||||||||||||||
Net sales | $ | 6,074.6 | $ | 5,615.9 | $ | 5,202.1 | |||||||||||
Segment operating income (loss) | $ | 2,494.3 | $ | 2,247.9 | $ | 2,042.9 | |||||||||||
Capital expenditures | $ | 693.9 | $ | 571.7 | $ | 720.0 | |||||||||||
Depreciation and amortization | $ | 194.7 | $ | 204.3 | $ | 203.5 | |||||||||||
Wine and Spirits | |||||||||||||||||
Net sales: | |||||||||||||||||
Wine | $ | 2,208.4 | $ | 2,367.5 | $ | 2,532.5 | |||||||||||
Spirits | 331.9 | 360.1 | 381.4 | ||||||||||||||
Net sales | $ | 2,540.3 | $ | 2,727.6 | $ | 2,913.9 | |||||||||||
Segment operating income (loss) | $ | 622.4 | $ | 708.4 | $ | 771.2 | |||||||||||
Income (loss) from unconsolidated investments | $ | 31.7 | $ | 36.4 | $ | 33.4 | |||||||||||
Equity method investments (1)
|
$ | 125.7 | $ | 87.7 | $ | 79.7 | |||||||||||
Capital expenditures | $ | 107.5 | $ | 92.7 | $ | 129.5 | |||||||||||
Depreciation and amortization | $ | 89.9 | $ | 98.7 | $ | 98.4 | |||||||||||
Corporate Operations and Other | |||||||||||||||||
Segment operating income (loss) | $ | (228.6) | $ | (223.9) | $ | (197.9) | |||||||||||
Income (loss) from unconsolidated investments | $ | (0.4) | $ | (3.2) | $ | (0.2) | |||||||||||
Equity method investments | $ | 83.9 | $ | 94.5 | $ | 53.8 | |||||||||||
Capital expenditures | $ | 63.2 | $ | 62.1 | $ | 36.8 | |||||||||||
Depreciation and amortization | $ | 14.4 | $ | 21.6 | $ | 28.3 | |||||||||||
Canopy | |||||||||||||||||
Net sales | $ | 378.6 | $ | 290.2 | $ | 48.6 | |||||||||||
Segment operating income (loss) | $ | (1,496.0) | $ | (685.8) | $ | (82.7) | |||||||||||
Capital expenditures | $ | 172.6 | $ | 572.8 | $ | 449.8 | |||||||||||
Depreciation and amortization | $ | 103.3 | $ | 81.4 | $ | 21.9 | |||||||||||
Consolidation and Eliminations | |||||||||||||||||
Net sales | $ | (378.6) | $ | (290.2) | $ | (48.6) | |||||||||||
Operating income (loss) | $ | 1,496.0 | $ | 685.8 | $ | 82.7 | |||||||||||
Income (loss) from unconsolidated investments | $ | (146.2) | $ | (221.7) | $ | (16.5) | |||||||||||
Equity method investments | $ | 2,578.8 | $ | 2,911.7 | $ | 3,332.1 | |||||||||||
Capital expenditures | $ | (172.6) | $ | (572.8) | $ | (449.8) | |||||||||||
Depreciation and amortization | $ | (103.3) | $ | (81.4) | $ | (21.9) | |||||||||||
Comparable Adjustments | |||||||||||||||||
Operating income (loss) | $ | (97.0) | $ | (577.9) | $ | (204.0) | |||||||||||
Income (loss) from unconsolidated investments | $ | 265.2 | $ | (2,480.1) | $ | 2,084.9 | |||||||||||
Depreciation and amortization | $ | 0.1 | $ | 7.6 | $ | 8.9 | |||||||||||
Constellation Brands, Inc. FY 2021 Form 10-K |
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For the Years Ended | |||||||||||||||||
February 28,
2021 |
February 29,
2020 |
February 28,
2019 |
|||||||||||||||
(in millions) | |||||||||||||||||
Consolidated | |||||||||||||||||
Net sales | $ | 8,614.9 | $ | 8,343.5 | $ | 8,116.0 | |||||||||||
Operating income (loss) | $ | 2,791.1 | $ | 2,154.5 | $ | 2,412.2 | |||||||||||
Income (loss) from unconsolidated investments (2)
|
$ | 150.3 | $ | (2,668.6) | $ | 2,101.6 | |||||||||||
Equity method investments (1)
|
$ | 2,788.4 | $ | 3,093.9 | $ | 3,465.6 | |||||||||||
Capital expenditures | $ | 864.6 | $ | 726.5 | $ | 886.3 | |||||||||||
Depreciation and amortization | $ | 299.1 | $ | 332.2 | $ | 339.1 |
For the Years Ended | |||||||||||||||||
February 28,
2021 |
February 29,
2020 |
February 28,
2019 |
|||||||||||||||
(in millions) | |||||||||||||||||
Net sales | |||||||||||||||||
U.S. | $ | 8,396.5 | $ | 8,116.2 | $ | 7,894.8 | |||||||||||
Non-U.S. (primarily Canada) | 218.4 | 227.3 | 221.2 | ||||||||||||||
$ | 8,614.9 | $ | 8,343.5 | $ | 8,116.0 |
February 28,
2021 |
February 29,
2020 |
||||||||||
(in millions) | |||||||||||
Long-lived tangible assets (1)
|
|||||||||||
U.S. | $ | 1,005.3 | $ | 897.7 | |||||||
Non-U.S. (primarily Mexico) | 4,816.3 | 4,435.3 | |||||||||
$ | 5,821.6 | $ | 5,333.0 |
Constellation Brands, Inc. FY 2021 Form 10-K |
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For the Three Months Ended | |||||||||||
February 28,
2021 |
February 29,
2020 |
||||||||||
(in millions, except per share data) | |||||||||||
Net sales | $ | 1,953.0 | $ | 1,902.9 | |||||||
Gross profit | $ | 993.7 | $ | 949.8 | |||||||
Net income (loss) attributable to CBI (1)
|
$ | 382.9 | $ | 398.4 | |||||||
Net income (loss) per common share attributable to CBI (1):
|
|||||||||||
Basic – Class A Common Stock | $ | 2.00 | $ | 2.10 | |||||||
Basic – Class B Convertible Common Stock | $ | 1.81 | $ | 1.91 | |||||||
Diluted – Class A Common Stock | $ | 1.95 | $ | 2.04 | |||||||
Diluted – Class B Convertible Common Stock | $ | 1.80 | $ | 1.89 |
Constellation Brands, Inc. FY 2021 Form 10-K |
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Constellation Brands, Inc. FY 2021 Form 10-K |
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Constellation Brands, Inc. FY 2021 Form 10-K |
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Plan Category | Number of securities to be issued upon exercise of outstanding options, warrants, and rights | Weighted average exercise price of outstanding options, warrants, and rights | Number of securities remaining available for future issuance under equity compensation plans (excluding securities reflected in first column) | ||||||||||||||||||||
Equity compensation plans approved by security holders | 5,100,654 |
(1)
|
$ | 131.89 |
(2)
|
11,586,519 |
(3)
|
||||||||||||||||
Equity compensation plans not approved by security holders | — | $ | — | — | |||||||||||||||||||
Total | 5,100,654 | $ | 131.89 | 11,586,519 |
Constellation Brands, Inc. FY 2021 Form 10-K |
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PART IV | OTHER KEY INFORMATION |
Table of Contents
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Constellation Brands, Inc. FY 2021 Form 10-K |
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Constellation Brands, Inc. FY 2021 Form 10-K |
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10.2 | ||||||||
10.3 | ||||||||
10.4 | ||||||||
10.5 | ||||||||
10.6 | ||||||||
10.7 | ||||||||
10.8 | ||||||||
10.9 |
Form of Terms and Conditions Memorandum for Employees with respect to grants of options to purchase Class 1 Stock pursuant to the Company’s Long-Term Stock Incentive Plant (grants on and after April 21, 2020) (filed as Exhibit 10.5 to the Company's Quarterly Report on Form 10-Q for the fiscal quarter ended May 31, 2020 and incorporated herein by reference). *
|
|||||||
10.10 | ||||||||
10.11 | ||||||||
10.12 | ||||||||
10.13 | ||||||||
10.14 | ||||||||
10.15 | ||||||||
10.16 | ||||||||
10.17 |
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10.34 | ||||||||
10.35 | ||||||||
10.36 | ||||||||
10.37 | ||||||||
10.38 | ||||||||
10.39 | ||||||||
10.40 | ||||||||
10.41 | ||||||||
10.42 | ||||||||
10.43 | ||||||||
10.44 | ||||||||
10.45 | ||||||||
10.46 | ||||||||
10.47 | ||||||||
10.48 | ||||||||
10.49 | ||||||||
10.50 | ||||||||
10.51 | ||||||||
21.1 | ||||||||
23.1 | ||||||||
31.1 | ||||||||
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31.2 | ||||||||
32.1 | ||||||||
32.2 | ||||||||
99.1 | ||||||||
99.2 | ||||||||
99.3 | ||||||||
99.4 | ||||||||
99.5 | ||||||||
101.INS | XBRL Instance Document - the instance document does not appear in the Interactive Data File because its XBRL tags are embedded within the Inline XBRL document (filed herewith). | |||||||
101.SCH | XBRL Taxonomy Extension Schema Document (filed herewith). | |||||||
101.CAL | XBRL Taxonomy Extension Calculation Linkbase Document (filed herewith). | |||||||
101.DEF | XBRL Taxonomy Extension Definition Linkbase Document (filed herewith). | |||||||
101.LAB | XBRL Taxonomy Extension Labels Linkbase Document (filed herewith). | |||||||
101.PRE | XBRL Taxonomy Extension Presentation Linkbase Document (filed herewith). | |||||||
104 | Cover Page Interactive Data File (formatted as Inline XBRL and contained in Exhibit 101). |
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CONSTELLATION BRANDS, INC. | ||||||||
By: |
/s/ William A. Newlands |
|||||||
April 20, 2021 | ||||||||
William A. Newlands
President and Chief Executive Officer |
/s/ William A. Newlands |
/s/ Garth Hankinson | |||||||
April 20, 2021 | April 20, 2021 | |||||||
William A. Newlands, Director, President
and Chief Executive Officer (principal executive officer) |
Garth Hankinson, Executive Vice
President and Chief Financial Officer (principal financial officer and principal accounting officer) |
|||||||
/s/ Robert Sands | /s/ Richard Sands | |||||||
April 20, 2021 | April 20, 2021 | |||||||
Robert Sands, Director and
Executive Chairman of the Board |
Richard Sands, Director and
Executive Vice Chairman of the Board |
|||||||
/s/ Christy Clark | /s/ Jennifer M. Daniels | |||||||
April 20, 2021 | April 20, 2021 | |||||||
Christy Clark, Director | Jennifer M. Daniels, Director | |||||||
/s/ Nicholas I. Fink | /s/ Jerry Fowden | |||||||
April 20, 2021 | April 20, 2021 | |||||||
Nicholas Fink, Director | Jerry Fowden, Director | |||||||
Constellation Brands, Inc. FY 2021 Form 10-K |
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/s/ Ernesto M. Hernández | /s/ Susan Somersille Johnson | |||||||
April 20, 2021 | April 20, 2021 | |||||||
Ernesto M. Hernández, Director | Susan Somersille Johnson, Director | |||||||
/s/ James A. Locke III | /s/ Jose Manuel Madero Garza | |||||||
April 20, 2021 | April 20, 2021 | |||||||
James A. Locke III, Director | Jose Manuel Madero Garza, Director | |||||||
/s/ Daniel J. McCarthy | /s/ Judy A. Schmeling | |||||||
April 20, 2021 | April 20, 2021 | |||||||
Daniel J. McCarthy, Director | Judy A. Schmeling, Director | |||||||
Constellation Brands, Inc. FY 2021 Form 10-K |
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● | if we were to seek to amend our certificate of incorporation to increase the authorized number of shares of a class of stock, or to increase or decrease the par value of a class of stock, then that class may be required to vote separately to approve the proposed amendment; and |
● | if we were to seek to amend our certificate of incorporation to alter or change the powers, preferences, or special rights of a class of stock in a manner that affected its holders adversely, then that class may be required to vote separately to approve the proposed amendment. |
● | prior to the time the interested stockholder becomes an interested stockholder, the board of directors approved either the business combination or the transaction which resulted in the stockholder becoming an interested stockholder; |
● | upon consummation of the transaction which resulted in the stockholder becoming an interested stockholder, the interested stockholder owns at least 85% of the outstanding voting stock; or |
● | at or subsequent to the time the interested stockholder became an interested stockholder, the business combination is approved by the board of directors and authorized at a meeting of the corporation’s stockholders by the affirmative vote of at least two-thirds of the outstanding voting stock that is not owned by the interested stockholder. |
SUBSIDIARIES OF CONSTELLATION BRANDS, INC. | |||||
As of March 1, 2021 | |||||
PLACE OF | |||||
SUBSIDIARY | INCORPORATION/FORMATION | ||||
24Ligne LLC1
|
New York | ||||
Tradename: | |||||
Black Button Distillery
|
|||||
ALCOFI Inc. | New York | ||||
Allberry, Inc. | California | ||||
Austin Cocktails Enterprises, LLC4
|
Texas | ||||
Austin Cocktails Investments, LLC1
|
Texas | ||||
Austin Cocktails Management, LLC4
|
Texas | ||||
BC Tenedora Inmobiliaria, S. de R.L. de C.V. | Mexico | ||||
Bebidas Espirituosas Constellation Mexico, S. de R.L. de C.V. | Mexico | ||||
Canandaigua B.V. | Netherlands | ||||
Canandaigua Limited | England and Wales | ||||
Canopy Growth Corporation1
|
Canada | ||||
Catoctin Creek Distilling Company LLC1
|
Virginia | ||||
CB Blue Holdings LLC | Delaware | ||||
CB Brand Strategies, LLC | Delaware | ||||
CB Brand Strategies II, LLC | Delaware | ||||
CB Brandy, LLC | Delaware | ||||
CB Cerveza Holdings S.à r.l. | Luxembourg | ||||
CB Cerveza Operations, S. de R.L. de C.V. | Mexico | ||||
CB Distilled Spirits LLC | Delaware | ||||
CBGE LLC | Delaware | ||||
CB Glass Holdings GmbH | Switzerland | ||||
CB International Finance S.à r.l. | Luxembourg | ||||
CB Procurement LLC | Delaware | ||||
CB Spirits Canada, Inc. | British Columbia | ||||
CBG Holdings LLC | Delaware | ||||
CBMXL Servicios de Baja, S. de R.L. de C.V. | Mexico | ||||
CBNZ Vintners Limited | New Zealand | ||||
CBrands Mexico SA de CV | Mexico | ||||
CBUS Crew Holdings, Inc. | Delaware | ||||
CBV Ventures LLC | Delaware | ||||
CBW LLC | Delaware | ||||
CBZ LLC | Delaware | ||||
Cerveza Holdings LLC | Delaware | ||||
CIC Holdings S.à r.l. | Luxembourg | ||||
CI Cerveza GmbH | Switzerland | ||||
CIH Holdings Mexico, S. de R.L. de C.V. | Mexico | ||||
CIH International S.à r.l. a/k/a CIH International GmbH | Switzerland | ||||
Clarion Spirits, LLC1
|
Kentucky | ||||
Cloud Peak Corporation | California |
CO Vidriera S.à r.l. a/k/a Co Vidriera GmbH2
|
Switzerland | ||||
Compañia Cervecera BC, S. de R.L. de C.V. | Mexico | ||||
Compañía Cervecera de Coahuila, S. de R.L. de C.V. | Mexico | ||||
Tradenames: | |||||
Cerveceria de Coahuila | |||||
Cerveceria Modelo | |||||
Compañía Cervecera de Obregón, S. de R.L. de C.V. | Mexico | ||||
Tradenames: | |||||
Cerveceria de Coahuila | |||||
Cerveceria Modelo | |||||
Constellation Beers Ltd. | Maryland | ||||
Constellation Brands (Shanghai) Business Consulting Co., Ltd. | Shanghai, China | ||||
Constellation Brands Beach Holdings, Inc. | Delaware | ||||
Constellation Brands Canada Holdings ULC | Nova Scotia | ||||
Constellation Brands España, S.L.U. | Spain | ||||
Constellation Brands Europe Trading SRL | Italy | ||||
Constellation Brands Hong Kong Limited | Hong Kong | ||||
Constellation Brands International IBC, Inc. | Barbados | ||||
Constellation Brands International SRL | Barbados | ||||
Constellation Brands New Zealand Limited | New Zealand | ||||
Tradenames: | |||||
Constellation Brands | |||||
Crafters Union Wine | |||||
Drylands Wines | |||||
Kim Crawford Wines | |||||
Monkey Bay Wines | |||||
Round Theory Wines | |||||
Selaks Wines | |||||
Sweatshed Wines | |||||
The Group Collective Wines | |||||
Young & Co Wines | |||||
Constellation Brands Sales Finance LLC | Delaware | ||||
Constellation Brands SMO, LLC | Delaware | ||||
Tradenames: | |||||
Spirits Marque One | |||||
Svedka Beverage Company | |||||
Constellation Brands U.S. Operations, Inc. | New York | ||||
Tradenames: | |||||
240 Days Winery | |||||
3 Blind Moose Cellars | |||||
7 Moons Wine Co. | |||||
Alice White | |||||
Alice White Vineyards | |||||
Alice White Winery | |||||
Almaden Brandies | |||||
Almaden Imports | |||||
Almaden Vineyards |
Ariesse Champagne Cellars | |||||
Auros Wines | |||||
Axia Wine Company | |||||
Bear Cliff Cellars | |||||
Bear Cliff Vineyards | |||||
Belaire Creek Cellars | |||||
Blossom Hill Collection | |||||
Blossom Hill Vineyards | |||||
Blossom Hill Winery | |||||
Bota Box Vineyards | |||||
Braidenwood Estates | |||||
Callie Collection | |||||
CB Vineyards | |||||
Centerra Wine Company | |||||
Charlemont Vineyards | |||||
Charles Smith Wines | |||||
Chase-Limogere | |||||
Chateau LaSalle | |||||
Cheval Sauvage | |||||
Club Cellars | |||||
Club Import | |||||
Coalbanks Whiskey | |||||
Coastal Vintners | |||||
Cooks’ Cellars | |||||
Cooper & Thief Cellarmasters | |||||
Crafters Union | |||||
CWUS Imports | |||||
Deer Valley Vineyards | |||||
Dunnewood Vineyards | |||||
Dunnewood Vineyards and Winery | |||||
EC Vineyards | |||||
Echo Falls Vineyards | |||||
Echo Falls Winery | |||||
Echo Grove Cellars | |||||
Estate Cellars | |||||
Excelsior Wine & Spirits | |||||
Farallon Vineyards | |||||
Forsythe Vineyards | |||||
Galleria Champagne Cellars | |||||
Hartley Cellars | |||||
Hayman & Hill | |||||
Hayman & Hill Vineyards | |||||
Hayman & Hill Wines | |||||
Heritage Village Cellars | |||||
Heritage Vineyards | |||||
Heublein | |||||
Heublein Cellars |
Heublein Wines | |||||
Inglenook - Napa Valley | |||||
Inglenook Champagne Cellars | |||||
Inglenook Estate Cellars | |||||
Inglenook Vineyard Co. | |||||
Inglenook Vineyards Co. | |||||
Inglenook-Napa Valley | |||||
Inside Out Wines | |||||
International Cellars | |||||
K. Cider Co. | |||||
King’s Pass | |||||
Lodi Distribution Center | |||||
Longhorn Vineyards | |||||
Marcus James | |||||
Marcus James Vineyards | |||||
Marcus James Winery | |||||
Medallion Imports | |||||
Meiomi Wines | |||||
Mendocino Vineyards | |||||
Mission Bell Wines | |||||
Monkey Bay | |||||
Motif Champagne Cellars | |||||
Nathanson Creek Cellars | |||||
Nathanson Creek Wine Cellar | |||||
Nathanson Creek Winery | |||||
Night Harvest Cellars | |||||
North Lake Wines | |||||
Notable Wine Co. | |||||
Oakville Cellars | |||||
Oakville Vineyards | |||||
Ooh La La Wines | |||||
Paso Creek | |||||
Popcrush Wines | |||||
Prospect Peak Cellars | |||||
PWP | |||||
R.H. Phillips | |||||
R.M.E., Inc. | |||||
Ravage Wines | |||||
Red Guitar Winery | |||||
Rev Winery | |||||
Rio Vaca Vineyard | |||||
Rio Vaca Vineyards | |||||
River Oaks | |||||
River Oaks Estates Vineyards | |||||
River Oaks Estates Wines | |||||
River Oaks Vineyards | |||||
River Oaks Vineyards & Winery |
River Oaks Vintners | |||||
River Oaks Wine Merchants | |||||
River Oaks Winery | |||||
River Oaks Winery & Vineyards | |||||
River Oaks Wines | |||||
Robert Mondavi | |||||
Robert Mondavi Coastal | |||||
Robert Mondavi Coastal Winery | |||||
Robert Mondavi Winery | |||||
Robert Mondavi Winery – Woodbridge | |||||
Robert Mondavi Woodbridge | |||||
Rusty Cage Wines | |||||
Rutherford Estate Cellars | |||||
Saint Regis Vineyards | |||||
Sangria Mas Wines | |||||
Santa Lucia | |||||
Santa Lucia Cellars | |||||
Santa Lucia Co. | |||||
Santa Lucia Company | |||||
Santa Lucia Orchard | |||||
Santa Lucia Vineyard | |||||
Santa Lucia Vineyards | |||||
Santa Lucia Wine | |||||
Santa Lucia Wine Cellars | |||||
Santa Lucia Winery | |||||
Santa Lucia Wines | |||||
Sante Vineyards | |||||
Saved Wines | |||||
Shewan Jones | |||||
Skyrocket Wines | |||||
Soul Catcher Cellars | |||||
Spoken Barrell | |||||
St. Regis | |||||
St. Regis Cellars | |||||
St. Regis Vineyards | |||||
T.J. Swann Wines | |||||
T.K. Wine Co. | |||||
Taco Diamonte | |||||
Talus | |||||
Talus Cellars | |||||
Talus Collection | |||||
Talus Vineyards | |||||
Talus Winery | |||||
The Dreaming Tree | |||||
The Jibe | |||||
The Jibe Wine Company | |||||
The R.H. Phillips Cellars |
The R.H. Phillips Vineyard | |||||
To Kalon Vineyard Company | |||||
Tom Gore Vineyards | |||||
Twin Fin | |||||
Twin Fin Wines | |||||
Vaca Rio Olivos Vineyards | |||||
Via Firenze Vineyards | |||||
Vincor USA | |||||
W.W. Imports | |||||
Widmer California Vineyards | |||||
Woodbridge Vineyards | |||||
Woodbridge Winery | |||||
Woodbridge Wines | |||||
Y & Co Cellars | |||||
Zen of Zin Winery | |||||
Constellation Capital LLC | Delaware | ||||
Constellation Europe (Holdings) Limited | England and Wales | ||||
Constellation International Holdings Limited | New York | ||||
Constellation Leasing, LLC | New York | ||||
Constellation Marketing Services, Inc. | Delaware | ||||
Constellation NZ Holdings | New Zealand | ||||
Constellation Services LLC | Delaware | ||||
Constellation Trading Company, Inc. | New York | ||||
Copper & Kings American Brandy Company | Kentucky | ||||
Tradename: | |||||
A.S. Buckingham | |||||
Bear Valley | |||||
Brewskey | |||||
Butchertown | |||||
Copper & Kings American Brandy | |||||
Cr&ftwerk | |||||
Destillare | |||||
Floodwall | |||||
John Wolf & Co. | |||||
T.H. Sherley & Co. | |||||
T.H. Sherley & Company | |||||
Ursus | |||||
Vin Brulee | |||||
Corkteam, LLC1
|
Illinois | ||||
Tradename: | |||||
Winestyr | |||||
Cristie Kerr Wines LLC1
|
Delaware | ||||
Crown Imports LLC | Delaware | ||||
Tradenames: | |||||
Crown Imports | |||||
Monarch Import Company | |||||
Crown Sales Finance LLC | Delaware |
CWI Holdings LLC | New York | ||||
Declan Distillers, LLC4
|
Texas | ||||
Tradename: | |||||
Austin Cocktails | |||||
Durham Distillery LLC1
|
North Carolina | ||||
El Silencio Holdings, Inc.1
|
Delaware | ||||
Four Corners Brewing Company LLC | Texas | ||||
Tradenames: | |||||
Four Corners Brewing Co. | |||||
Four Corners Brewing Company | |||||
Funky Buddha Brewery LLC | Florida | ||||
Tradename: | |||||
Funky Buddha Brewery | |||||
GJS Sales, Inc.4
|
Illinois | ||||
Goose Egg, LLC | Delaware | ||||
Tradenames: | |||||
Empathy Red | |||||
Empathy Rose | |||||
Empathy White | |||||
Empathy Wines | |||||
Greenstar Canada Investment Corporation | British Columbia | ||||
Greenstar Canada Investment Limited Partnership | British Columbia | ||||
Greenstar II Holdings LLC | Delaware | ||||
Greenstar II LLC | Delaware | ||||
HBMB, Inc. | Delware | ||||
High West Distillery, LLC | Utah | ||||
Tradename: | |||||
Western Standard Brewing Company | |||||
High West Holdings, LLC | Delaware | ||||
High West Properties, LLC | Utah | ||||
High West Saloon, LLC | Utah | ||||
Home Brew Mart, Inc. | California | ||||
Tradenames: | |||||
Blue Crown Brewing | |||||
Star Catcher Beverages | |||||
Industria Vidriera de Coahuila, S. de R.L. de C.V.3
|
Mexico | ||||
Karma Beverage Company LLC4
|
New York | ||||
Karma Cap Company LLC4
|
New York | ||||
Karma Culture LLC1
|
New York | ||||
Kikowhero Partnership1
|
New Zealand | ||||
Kim Crawford Wines Limited | New Zealand | ||||
Kingstreet GmbH | Switzerland | ||||
Manor Park Cellars Limited | England and Wales | ||||
Mezcal El Silencio Mexico S. de R.L. de C.V4
|
Mexico | ||||
Mezcal El Silencio Raices, S. de R.L. de C.V.4
|
Mexico | ||||
Montanya Distillers, LLC1
|
Colorado | ||||
MXL H2O, S. de R.L. de C.V. | Mexico |
My Favorite Neighbor, LLC1
|
California | ||||
Nelson’s Green Brier Distillery, LLC2
|
Delaware | ||||
Tradenames: | |||||
Belle Meade Distillery | |||||
Green Brier Distillery Co. | |||||
Music City Whiskey | |||||
Nelson's Distillery Co. | |||||
Nelson's Green Brier | |||||
Tennessee Whiskey Company | |||||
Whiskey 615 | |||||
NZCB Pacific Limited | New Zealand | ||||
Old Line Spirits, LLC1
|
Maryland | ||||
Operadora El Silencio, S. de R.L. de C.V.4
|
Mexico | ||||
Opus One Winery LLC1
|
Delaware | ||||
Poderi Ducali Ruffino S.r.l. Società Agricola | Italy | ||||
Real McCoy Spirits, Corp.1
|
Delaware | ||||
RMD Acquisition Corp. | Delaware | ||||
Robert Mondavi Europe GmbH | Germany | ||||
Robert Mondavi Investments | California | ||||
Rocco Holdings, S.A. de C.V.4
|
Mexico | ||||
Ruffino S.r.l. | Italy | ||||
Tradenames: | |||||
I.L. Ruffino 1877 Srl | |||||
Chianti Ruffino Srl | |||||
Toscovini Srl | |||||
Schrader Cellars, LLC | California | ||||
Tradename: | |||||
Schrader Cellars | |||||
Selaks Wines Limited | New Zealand | ||||
Servicios Modelo de Coahuila, S. de R.L. de C.V. | Mexico | ||||
Springfield Partnership1
|
New Zealand | ||||
Star Catcher LLC | Delaware | ||||
STZ Lucky Stars LLC | Delaware | ||||
Tenute Ruffino S.r.l. Società Agricola | Italy | ||||
Tradenames: | |||||
Ruffino Estates Srl | |||||
Tenimenti Ruffino Srl | |||||
Tenute Ruffino S.r.l. | |||||
Tenute Agricole Ruffino S.r.l. | |||||
The Bardstown Bourbon Company, LLC4
|
Kentucky | ||||
The Robert Mondavi Company II LLC | Delaware | ||||
The Robert Mondavi Corporation | California | ||||
TPWC, Inc. | Delaware | ||||
Tradenames: | |||||
California Coast Winery | |||||
Chantree | |||||
Cuttings Wharf Vineyards |
Cuvee Sauvage | |||||
Dreamboat Cellars | |||||
Dreamboat Vineyards | |||||
Dreamboat Winery | |||||
Drylands Wines | |||||
Duetto | |||||
Friars’ Table | |||||
FV Reserve | |||||
Goldfields | |||||
Icon Estates | |||||
Kim Crawford Wines | |||||
Michael’s | |||||
Moltepulciano | |||||
Mount Veeder Winery | |||||
Mt. Veeder Winegrowers | |||||
Mt. Veeder Winery | |||||
Nap Val Winery | |||||
Pickle Canyon Vineyards | |||||
Quarry Lake Winery, Sonoma | |||||
Redwood Coast Winery | |||||
Ruffino Import Company | |||||
Ruffino Imports | |||||
Silver Oak Cellars | |||||
Simi Winery | |||||
Simi Winescapes | |||||
Stonewall Canyon | |||||
Stonewall Canyon Cellars | |||||
Stonewall Canyon Creek | |||||
Stonewall Canyon Vineyards | |||||
Stonewall Canyon Winery | |||||
Stonewell Canyon | |||||
Stonewell Canyon Cellars | |||||
Stonewell Canyon Creek | |||||
Stonewell Canyon Vineyards | |||||
Stonewell Canyon Winery | |||||
The Prisoner Wine Company | |||||
Vina Caliterra | |||||
VineOne | |||||
Vintage Ink | |||||
Winescapes | |||||
Valleyfield Vineyard Partnership5
|
New Zealand | ||||
Vidriera Holdings S.à r.l. a/k/a Vidriera Holdings GmbH3
|
Switzerland | ||||
Vincor Finance, LLC | Delaware | ||||
Vivify Beverages, LLC1
|
Delaware | ||||
Washington State Wine Company, Inc. | |||||
Tradenames: | |||||
Horse Heaven Hills Wine |
K.C. Arey & Co. | |||||
King Solomon Wine Co. | |||||
Kings Wine Co. | |||||
La Domaine | |||||
La Petite Wine Cellars | |||||
Lake Island Champagne Cellars | |||||
Marcus James Winery | |||||
Margo Vintners | |||||
Marvino Wine Company | |||||
Masada Wine Company | |||||
Melody Hill Vintners | |||||
Monarch Wine Co. | |||||
Monarch Wine Imports | |||||
Monte Carlo Champagne Cellars | |||||
Moselweinhaus Import Company | |||||
Mother Vineyard Wine Co. | |||||
Moulin Rouge Champagne Cellars | |||||
M-R Champagne Co. | |||||
New York State Wine Company | |||||
Pol D’Argent Import Company | |||||
Premium Champagne Company | |||||
Reserve Du Domaine Vineyard | |||||
Richards Champagne Cellars | |||||
Richards Fils Et Cie Wineries | |||||
Richards Wine Company | |||||
Rosatello Wines | |||||
Satin Rose Wine Co. | |||||
Schenley Distributors | |||||
Sky Rocket Wines | |||||
Southland Wine Co. | |||||
Sun Country Cellars | |||||
The California Cellars of Chase-Limogere | |||||
The Great Western Winery | |||||
Tiger Wine Co. | |||||
Trance Winery | |||||
Upper Bay Wine Cellars | |||||
Vine Valley Winery | |||||
Vineyard to Wine Cellar | |||||
Vineyard to Wine Cellars | |||||
Virginia Dare Wine Company | |||||
Wheeler Wine Cellars | |||||
Wilen Brothers Co. | |||||
Wilen Wine Co. | |||||
Winedale Vineyards |
/s/ William A. Newlands | ||
William A. Newlands | ||
President and
Chief Executive Officer |
/s/ Garth Hankinson | ||
Garth Hankinson | ||
Executive Vice President and | ||
Chief Financial Officer |
Dated: | April 20, 2021 |
/s/ William A. Newlands
|
||||||
William A. Newlands,
President and Chief Executive Officer
|
Dated: | April 20, 2021 |
/s/ Garth Hankinson
|
||||||
Garth Hankinson,
Executive Vice President and
Chief Financial Officer
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