3Q24 Investor Update
CONSTELLATION BRANDS, INC. AND SUBSIDIARIES
RECONCILIATIONS OF GAAP TO NON-GAAP FINANCIAL MEASURES (continued)
(in millions, except per share data)
(unaudited)
Recovery of (loss on) inventory write-down
We recognized a gain from a change in estimate on reserved bulk wine inventory and certain grapes as a result of smoke
damage sustained during the 2020 U.S. West Coast wildfires.
Transition services agreements activity
We recognized costs in connection with transition services agreements related to the previous sale of a portion of our wine and
spirits business.
Gain (loss) on sale of business
We recognized a net gain (loss) primarily from (i) the 2022 Wine Divestiture (three months and nine months ended November
30, 2022) and (ii) the divestitures related to the craft beer business (three months and nine months ended November 30, 2023).
Transaction, integration, and other acquisition-related costs
We recognized transaction, integration, and other acquisition-related costs in connection with our investments, acquisitions,
and divestitures.
Costs associated with the Reclassification
We recognized costs primarily related to professional and consulting fees, printing and mailing the associated proxy statement/
prospectus, and all filing and other fees paid to the Securities and Exchange Commission in connection with the Reclassification.
Other gains (losses)
Primarily includes the following:
Recognition of a previously deferred gain upon release of a related
indemnity
Decreases (increases) in estimated fair values of contingent
liabilities associated with prior period acquisitions
Gain from remeasurement of previously held equity method
investments
Impairment of equity method investments
Unrealized gain (loss) from the changes in fair value of our
securities measured at fair value
Comparable adjustments to Canopy EIE (see slide 33 for further
information)
Net gain (loss) on sale of unconsolidated investment
Comparable adjustments, Income (loss) from unconsolidated investments
Primarily includes the following:
Net income tax benefit recognized as a result of a change in tax
entity classification
Net income tax benefit recognized as a result of a legislative
update in Switzerland
Net income tax benefit related to a prior period divestiture
S
$
Net income tax (provision) benefit recognized for adjustments to
valuation allowances
Three Months Ended
November 30, November 30,
2023
2022
$
Ś
$
I
$
I
$
S
$
$
Three Months Ended
November 30, November 30,
2023
2022
$
$
(0.3) $
(11.0) $
(50.0) $
0.3 $
T
Three Months Ended
November 30, November 30,
2023
2022
$
ins
1.5 S
$
$
$
$
$
(7.4) S
(24.1) S
$
Nine Months Ended
November 30, November 30,
2023
2022
$
Comparable adjustments, Interest expense
We recognized a loss of interest income on the write-off of a convertible note issued to an equity method investment.
Comparable adjustments, Loss on extinguishment of debt
We recognized losses primarily from a premium payment and the write-off of debt issuance costs in connection with tender
offers of certain senior notes and make-whole payments resulting from the early redemption of certain senior notes.
Comparable adjustments, (Provision for) benefit from income taxes
The effective tax rate applied to each comparable adjustment amount is generally based upon the jurisdiction in which the
comparable adjustment was recognized. Comparable adjustments, (Provision for) benefit from income taxes also include items
solely impacting income taxes and consist of the following:
I
5.6 $
November 30,
2023
S
$
(6.7) $
I
$
S
Nine Months Ended
(136.1) $
(85.4) $
(231.5) $
0.3 $
S
I
November 30,
2022
Nine Months Ended
November 30, November 30,
2023
2022
31.2 S
4.7 $
$
5.9
I
5.2
$
(1,060.3)
(39.1)
(753.0)
143.7
(192.0)View entire presentation