3Q24 Investor Update
CONSTELLATION BRANDS, INC. AND SUBSIDIARIES
RECONCILIATIONS OF GAAP TO NON-GAAP FINANCIAL MEASURES (continued)
(in millions, except per share data)
(unaudited)
The comparable adjustments that impacted comparability in our results for each period are as follows:
Three Months Ended
Net gain (loss) on undesignated commodity derivative
contracts
Flow through of inventory step-up
Settlements of undesignated commodity derivative
contracts
Strategic business development costs
Net flow through of reserved inventory
Recovery of (loss on) inventory write-down
Comparable adjustments, Gross profit
Restructuring and other strategic business development
costs
Transition services agreements activity
Gain (loss) on sale of business
Transaction, integration, and other acquisition-related
costs
Costs associated with the Reclassification
Other gains (losses)
Comparable adjustments, Operating income (loss)
Comparable adjustments, Income (loss) from
unconsolidated investments
Comparable adjustments, Adjusted EBIT
Comparable adjustments, Interest expense
Comparable adjustments, Loss on extinguishment of debt
Comparable adjustments, (Provision for) benefit from
income taxes
Comparable adjustments, Net income (loss) attributable
to CBI
November 30, November 30,
2023
2022
$
(13.3) $
(1.2)
2.3
-
N|||
(12.2)
(5.3)
(5.2)
(0.2)
| | || 9
(22.9)
(61.0)
(83.9)
(1.0)
|
5.6
(79.3) $
(7.8) $
(2.1)
(14.2)
(1.1)
(25.2)
(0.2)
(3.5)
13.8
(0.5)
(10.2)
2.8
(23.0)
(31.5)
(54.5)
Nine Months Ended
November 30, November 30,
2023
2022
(2.5)
(57.0) $
(28.9) $
(2.7)
8.5
(23.1)
Net flow through of reserved inventory
We sold reserved inventory previously written down following the 2020 U.S. West Coast wildfires.
(23.6)
(17.9)
(15.1)
(0.6)
0.2
5.6
(74.5)
(452.8)
(527.3)
(1.0)
(0.7)
59.3
(469.7) $
25.3
(4.0)
(68.8)
(1.1)
1.2
0.2
(47.2)
(2.8)
(11.4)
13.8
(1.2)
(31.5)
11.6
(68.7)
(1,852.4)
(1,921.1)
(23.3)
33.2
(1,911.2)
Undesignated commodity derivative contracts
Net gain (loss) on undesignated commodity derivative contracts represents a net gain (loss) from the changes in fair value of
undesignated commodity derivative contracts. The net gain (loss) is reported outside of segment operating results until such
time that the underlying exposure is recognized in the segment operating results. At settlement, the net gain (loss) from the
changes in fair value of the undesignated commodity derivative contracts is reported in the appropriate operating segment,
allowing the results of our operating segments to reflect the economic effects of the commodity derivative contracts without
the resulting unrealized mark to fair value volatility.
Flow through of inventory step-up
In connection with acquisitions, the allocation of purchase price in excess of book value for certain inventories on hand at the
date of acquisition is referred to as inventory step-up. Inventory step-up represents an assumed manufacturing profit
attributable to the acquired business prior to acquisition.
Strategic business development costs/Restructuring and other strategic business development costs
We recognized costs in connection with certain activities which are intended to streamline, increase efficiencies, and reduce our
cost structure primarily within the Wine and Spirits segment.View entire presentation