CONSTELLATION BRANDS, INC.STZ
CONSTELLATION BRANDS, INC. Segments Disclosure
BUSINESS SEGMENT INFORMATION
Our internal management financial reporting consists of two business divisions: (i) Beer and (ii) Wine and Spirits and we report our operating results in three segments: (i) Beer, (ii) Wine and Spirits, and (iii) Corporate Operations and Other. In the Beer segment, our portfolio consists of high-end imported beer brands and ABAs. We have an exclusive perpetual brand license to produce our beer portfolio and to import, market, and sell such portfolio in the U.S. In the Wine and Spirits segment, we sell a portfolio comprised of exclusively higher-end wine and spirits brands. Amounts included in the Corporate Operations and Other segment consist of costs of corporate communications, corporate development, corporate finance, corporate strategy, executive management, human resources, internal audit, investor relations, IT, legal, and public affairs, as well as our investments such as those made through our corporate venture capital function. All costs included in the Corporate Operations and Other segment are general costs that are applicable to the consolidated group and are, therefore, not allocated to the other reportable segments. All costs reported within the Corporate Operations and Other segment are not included in our CODM’s evaluation of the operating income (loss) performance of the other reportable segments. Our CODM is our President and Chief Executive Officer. The business segments reflect how our operations are managed, how resources are allocated, how operating performance is evaluated by senior management, and the structure of our internal financial reporting. Long-lived tangible assets and total asset information by segment is not provided to, or reviewed by, our CODM as it is not used to make strategic decisions, allocate resources, or assess performance. Our CODM utilizes segment comparable operating income (loss) performance in deciding how to deploy capital in line with disciplined and balanced priorities. These priorities largely include investing in our people and our brands, making capital investments and strategic acquisitions, providing a cash dividend program, and from time-to-time, repurchasing shares of our common stock. Our CODM also monitors budgeted versus actual results in assessing segment operating performance and understanding underlying business trends.
Management excludes Comparable Adjustments from its evaluation of the results of each operating segment as these Comparable Adjustments are not reflective of core operations of the segments. Segment operating
performance and the incentive compensation of segment management are evaluated based on core segment operating income (loss) which does not include the impact of these Comparable Adjustments, collectively referred to as comparable operating income (loss). We evaluate segment operating performance based on comparable operating income (loss) of the respective business units.
The accounting policies of the segments are the same as those described for the Company in the Summary of Significant Accounting Policies in Note 1. Segment information is as follows:
| Beer | Wine and Spirits | Corporate Operations and Other | Consolidated | ||||||||||||||||||||
| (in millions) | |||||||||||||||||||||||
| For the Year Ended February 28, 2026 | |||||||||||||||||||||||
| Net sales | $ | 8,315.2 | $ | 823.8 | $ | — | $ | 9,139.0 | |||||||||||||||
Cost of product sold (1) | (3,953.7) | (491.9) | — | ||||||||||||||||||||
| Marketing | (774.9) | (92.5) | — | ||||||||||||||||||||
| % Net sales | 9.3 | % | 11.2 | % | |||||||||||||||||||
General and administrative expenses (1) | (425.6) | (228.9) | (228.3) | ||||||||||||||||||||
Comparable operating income (loss) (1) | 3,161.0 | 10.5 | (228.3) | 2,943.2 | |||||||||||||||||||
| Operating margin | 38.0 | % | 1.3 | % | |||||||||||||||||||
Comparable adjustments (2) | (221.8) | ||||||||||||||||||||||
| Operating income (loss) | 2,721.4 | ||||||||||||||||||||||
Income (loss) from unconsolidated investments (3) | 9.0 | ||||||||||||||||||||||
Interest expense, net (4) | (352.6) | ||||||||||||||||||||||
| Income (loss) before income taxes | $ | 2,377.8 | |||||||||||||||||||||
| Capital expenditures | $ | 762.4 | $ | 107.4 | $ | 5.2 | $ | 875.0 | |||||||||||||||
| Depreciation and amortization | $ | 330.9 | $ | 67.1 | $ | 22.0 | $ | 420.0 | |||||||||||||||
| % Net sales | 4.0 | % | 8.1 | % | |||||||||||||||||||
| For the Year Ended February 28, 2025 | |||||||||||||||||||||||
| Net sales | $ | 8,539.8 | $ | 1,668.9 | $ | — | $ | 10,208.7 | |||||||||||||||
Cost of product sold (1) | (3,973.7) | (926.6) | — | ||||||||||||||||||||
| Marketing | (769.0) | (162.2) | — | ||||||||||||||||||||
| % Net sales | 9.0 | % | 9.7 | % | |||||||||||||||||||
General and administrative expenses (1) | (402.7) | (255.0) | (244.6) | ||||||||||||||||||||
Comparable operating income (loss) (1) | 3,394.4 | 325.1 | (244.6) | 3,474.9 | |||||||||||||||||||
| Operating margin | 39.7 | % | 19.5 | % | |||||||||||||||||||
Comparable adjustments (2) | (3,120.0) | ||||||||||||||||||||||
| Operating income (loss) | 354.9 | ||||||||||||||||||||||
Income (loss) from unconsolidated investments (3) | (26.3) | ||||||||||||||||||||||
Interest expense, net (4) | (411.4) | ||||||||||||||||||||||
| Income (loss) before income taxes | $ | (82.8) | |||||||||||||||||||||
| Capital expenditures | $ | 991.5 | $ | 177.0 | $ | 45.6 | $ | 1,214.1 | |||||||||||||||
| Depreciation and amortization | $ | 341.1 | $ | 84.2 | $ | 21.7 | $ | 447.0 | |||||||||||||||
| % Net sales | 4.0 | % | 5.0 | % | |||||||||||||||||||
| For the Year Ended February 29, 2024 | |||||||||||||||||||||||
| Net sales | $ | 8,162.6 | $ | 1,799.2 | $ | — | $ | 9,961.8 | |||||||||||||||
Cost of product sold (1) | (3,948.4) | (963.1) | — | ||||||||||||||||||||
| Marketing | (688.5) | (165.0) | — | ||||||||||||||||||||
| % Net sales | 8.4 | % | 9.2 | % | |||||||||||||||||||
General and administrative expenses (1) | (431.3) | (272.4) | (247.6) | ||||||||||||||||||||
Comparable operating income (loss) (1) | 3,094.4 | 398.7 | (247.6) | 3,245.5 | |||||||||||||||||||
| Operating margin | 37.9 | % | 22.2 | % | |||||||||||||||||||
Comparable adjustments (2) | (75.8) | ||||||||||||||||||||||
| Operating income (loss) | 3,169.7 | ||||||||||||||||||||||
Income (loss) from unconsolidated investments (3) | (511.8) | ||||||||||||||||||||||
Interest expense, net (4) | (436.1) | ||||||||||||||||||||||
| Income (loss) before income taxes | $ | 2,221.8 | |||||||||||||||||||||
| Capital expenditures | $ | 947.9 | $ | 185.6 | $ | 135.6 | $ | 1,269.1 | |||||||||||||||
| Depreciation and amortization | $ | 323.9 | $ | 88.8 | $ | 16.5 | $ | 429.2 | |||||||||||||||
| % Net sales | 4.0 | % | 4.9 | % | |||||||||||||||||||
(1)Amounts are determined and presented on a non-GAAP basis and are intended to reflect our core operations.
(2)Comparable Adjustments that impacted comparability in our segment operating income (loss) for each period are as follows:
| For the Years Ended | |||||||||||||||||
| February 28, 2026 | February 28, 2025 | February 29, 2024 | |||||||||||||||
| (in millions) | |||||||||||||||||
| Cost of product sold | |||||||||||||||||
| Strategic business reconfiguration costs | $ | (4.8) | $ | (10.7) | $ | — | |||||||||||
| Flow through of inventory step-up | (4.1) | (10.2) | (3.6) | ||||||||||||||
| Net gain (loss) on undesignated commodity derivative contracts | 23.6 | (0.3) | (44.2) | ||||||||||||||
| Settlements of undesignated commodity derivative contracts | 3.4 | 26.8 | 15.0 | ||||||||||||||
| Other gains (losses) | — | 0.6 | — | ||||||||||||||
| Comparable Adjustments, Cost of product sold | 18.1 | 6.2 | (32.8) | ||||||||||||||
| Selling, general, and administrative expenses | |||||||||||||||||
2025 Restructuring Initiative | (72.2) | (49.7) | — | ||||||||||||||
| Transition services agreements activity | (35.7) | (22.6) | (24.9) | ||||||||||||||
Strategic business reconfiguration costs | (10.4) | (29.6) | (46.3) | ||||||||||||||
Chief Executive Officer severance and transition benefits | (7.8) | — | — | ||||||||||||||
| Insurance recoveries | — | — | 55.1 | ||||||||||||||
Other gains (losses) (i) | 27.9 | (14.6) | (11.8) | ||||||||||||||
| Comparable Adjustments, selling, general, and administrative expenses | (98.2) | (116.5) | (27.9) | ||||||||||||||
| Goodwill and intangible assets impairment | — | (2,797.7) | — | ||||||||||||||
Asset impairment and related expenses | (109.8) | (478.0) | — | ||||||||||||||
| Gain (loss) on sale of business | (31.9) | 266.0 | (15.1) | ||||||||||||||
| Comparable Adjustments, Operating income (loss) | $ | (221.8) | $ | (3,120.0) | $ | (75.8) | |||||||||||
(i) | Primarily includes the following: | |||||||||||||||||||
| For the Years Ended | ||||||||||||||||||||
| February 28, 2026 | February 28, 2025 | February 29, 2024 | ||||||||||||||||||
| (in millions) | ||||||||||||||||||||
Gain (loss) on sale of assets | $ | 3.0 | $ | — | $ | — | ||||||||||||||
| Net loss on foreign currency as a result of the resolution of various tax examinations and assessments | $ | — | $ | (20.7) | $ | — | ||||||||||||||
| Decreases in estimated fair values of contingent liabilities associated with prior period acquisitions | $ | 25.6 | $ | 7.0 | $ | 2.0 | ||||||||||||||
| Net loss from changes in the indemnification of liabilities associated with prior period divestitures | $ | — | $ | — | $ | (12.7) | ||||||||||||||
(3) | Income (loss) from unconsolidated investments consists of: | ||||||||||||||||||||||
| For the Years Ended | |||||||||||||||||||||||
| February 28, 2026 | February 28, 2025 | February 29, 2024 | |||||||||||||||||||||
| (in millions) | |||||||||||||||||||||||
| Equity in earnings (losses) from other equity method investees and related activities | $ | 15.5 | $ | 23.1 | $ | 31.0 | |||||||||||||||||
Unrealized net gain (loss) on securities measured at fair value | (5.0) | (47.9) | (85.4) | ||||||||||||||||||||
| Equity method investments impairment | (1.5) | (8.7) | (136.1) | ||||||||||||||||||||
Net gain in connection with Exchangeable Shares | — | 7.2 | — | ||||||||||||||||||||
Equity in earnings (losses) from Canopy and related activities | — | — | (321.3) | ||||||||||||||||||||
| $ | 9.0 | $ | (26.3) | $ | (511.8) | ||||||||||||||||||
(4) | Interest expense, net consists of: | ||||||||||||||||||||||
| For the Years Ended | |||||||||||||||||||||||
| February 28, 2026 | February 28, 2025 | February 29, 2024 | |||||||||||||||||||||
| (in millions) | |||||||||||||||||||||||
| Interest expense | $ | (361.6) | $ | (418.4) | $ | (443.6) | |||||||||||||||||
| Interest income | 10.4 | 7.0 | 8.2 | ||||||||||||||||||||
| Loss on extinguishment of debt | (1.4) | — | (0.7) | ||||||||||||||||||||
| $ | (352.6) | $ | (411.4) | $ | (436.1) | ||||||||||||||||||
Our principal area of operation is in the U.S. Current operations outside the U.S. are in Mexico for the Beer segment and primarily in New Zealand and Italy for the Wine and Spirits segment. Revenues are attributed to countries based on the location of the customer. Geographic data is as follows:
| For the Years Ended | |||||||||||||||||
| February 28, 2026 | February 28, 2025 | February 29, 2024 | |||||||||||||||
| (in millions) | |||||||||||||||||
| Net sales | |||||||||||||||||
| U.S. | $ | 9,005.7 | $ | 10,016.4 | $ | 9,748.1 | |||||||||||
Non-U.S. (1) | 133.3 | 192.3 | 213.7 | ||||||||||||||
| $ | 9,139.0 | $ | 10,208.7 | $ | 9,961.8 | ||||||||||||
(1)Consists primarily of Canada, New Zealand, Australia, and Italy for the year ended February 28, 2026, primarily of Canada and Italy for the year ended February 28, 2025, and primarily of Canada and New Zealand for the year ended February 29, 2024.
| February 28, 2026 | February 28, 2025 | ||||||||||
| (in millions) | |||||||||||
Long-lived tangible assets | |||||||||||
| U.S. | $ | 900.9 | $ | 898.9 | |||||||
| Non-U.S. (primarily Mexico) | 7,620.0 | 6,510.9 | |||||||||
| $ | 8,520.9 | $ | 7,409.8 | ||||||||
Historical Timeline
| Fiscal Year | Filed | |
|---|---|---|
| 2026 | Apr 22, 2026 | Showing above |
| 2025 | Apr 23, 2025 | |
| 2024 | Apr 23, 2024 | |
| 2023 | Apr 20, 2023 | |
| 2022 | Apr 21, 2022 | |
| 2021 | Apr 20, 2021 | |
| 2020 | Apr 21, 2020 | |
| 2019 | Apr 23, 2019 | |
| 2018 | Apr 23, 2018 | |
| 2017 | Apr 27, 2017 | |
| 2016 | Apr 25, 2016 | |
About Segments Disclosures
Segment disclosures break a company into its reportable operating units, revealing revenue, profit, and asset allocation that consolidated financial statements obscure. Under ASC 280, segments must match how the chief operating decision maker views the business, providing a window into internal management structure and resource allocation priorities.
Key signals: compare segment margins to identify which units drive profitability and which destroy value. Watch for changes in the number of reportable segments — segment aggregation or disaggregation often coincides with strategic shifts or attempts to obscure declining performance. Intersegment elimination patterns reveal internal pricing practices. The reconciliation between segment totals and consolidated figures exposes corporate overhead allocation and unallocated items. Geographic revenue concentration highlights regulatory and currency exposure. Compare segment-level capital expenditure against segment revenue to assess where management is investing for future growth versus harvesting existing assets.