Item 8. FINANCIAL STATEMENTS AND SUPPLEMENTARY DATA

CONSTELLATION BRANDS, INC. AND SUBSIDIARIES

INDEX TO CONSOLIDATED FINANCIAL STATEMENTS

FEBRUARY 28, 2026

									Page
Management’s Annual Report on Internal Control Over Financial Reporting									57
Reports of Independent Registered Public Accounting Firm (PCAOB ID 185)									58
Consolidated Balance Sheets									62
Consolidated Statements of Comprehensive Income (Loss)									63
Consolidated Statements of Changes in Stockholders’ Equity									64
Consolidated Statements of Cash Flows									65
Notes to Consolidated Financial Statements
			1		.	Description of Business, Basis of Presentation, and Summary of Significant Accounting Policies			67
			2		.	Acquisitions and Divestitures			72
			3		.	Restructuring			73
			4		.	Inventories			74
			5		.	Prepaid Expenses and Other			75
			6		.	Property, Plant, and Equipment, Net			75
			7		.	Derivative Instruments			75
			8		.	Fair Value of Financial Instruments			79
			9		.	Goodwill			83
			10		.	Intangible Assets			83
			11		.	Other Assets			84
			12		.	Other Accrued Expenses and Liabilities			85
			13		.	Borrowings			86
			14		.	Income Taxes			90
			15		.	Deferred Income Taxes and Other Liabilities			95
			16		.	Leases			95
			17		.	Commitments and Contingencies			97
			18		.	Stockholders' Equity			98
			19		.	Stock-Based Employee Compensation			100
			20		.	Net Income (Loss) Per Common Share Attributable to CBI			104
			21		.	Accumulated Other Comprehensive Income (Loss)			105
			22		.	Significant Customers and Concentration of Credit Risk			107
			23		.	Business Segment Information			107
			24		.	Selected Quarterly Financial Information (unaudited)			107

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PART II			ITEM 8. FINANCIAL STATEMENTS AND SUPPLEMENTARY DATA			Table of Contents

Management’s Annual Report on Internal Control Over Financial Reporting

Management of Constellation Brands, Inc. and subsidiaries (the Company) is responsible for establishing and maintaining an adequate system of internal control over financial reporting. This system is designed to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with U.S. generally accepted accounting principles.

The Company’s internal control over financial reporting includes those policies and procedures that (i) pertain to the maintenance of records that, in reasonable detail, accurately and fairly reflect the transactions and dispositions of the assets of the Company; (ii) provide reasonable assurance that transactions are recorded as necessary to permit preparation of financial statements in accordance with generally accepted accounting principles, and that receipts and expenditures of the Company are being made only in accordance with authorizations of management and directors of the Company; and (iii) provide reasonable assurance regarding prevention or timely detection of unauthorized acquisition, use, or disposition of the Company’s assets that could have a material effect on the financial statements.

Because of its inherent limitations, a system of internal control over financial reporting can provide only reasonable assurance and may not prevent or detect misstatements. Further, because of changes in conditions, effectiveness of internal controls over financial reporting may vary over time.

Management conducted an evaluation of the effectiveness of the system of internal control over financial reporting based on the framework in Internal Control – Integrated Framework (2013) issued by the Committee of Sponsoring Organizations (COSO) of the Treadway Commission. Based on that evaluation, management concluded that the Company’s internal control over financial reporting was effective as of February 28, 2026.

The effectiveness of the Company’s internal control over financial reporting has been audited by KPMG LLP, an independent registered public accounting firm, as stated in their report which is included herein.

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PART II			ITEM 8. FINANCIAL STATEMENTS AND SUPPLEMENTARY DATA			Table of Contents

Report of Independent Registered Public Accounting Firm

To the Stockholders and Board of Directors

Constellation Brands, Inc.:

Opinion on Internal Control Over Financial Reporting

We have audited Constellation Brands, Inc. and subsidiaries’ (the Company) internal control over financial reporting as of February 28, 2026, based on criteria established in Internal Control - Integrated Framework (2013) issued by the Committee of Sponsoring Organizations of the Treadway Commission. In our opinion, the Company maintained, in all material respects, effective internal control over financial reporting as of February 28, 2026, based on criteria established in Internal Control - Integrated Framework (2013) issued by the Committee of Sponsoring Organizations of the Treadway Commission.

We also have audited, in accordance with the standards of the Public Company Accounting Oversight Board (United States) (PCAOB), the consolidated balance sheets of the Company as of February 28, 2026 and 2025, the related consolidated statements of comprehensive income (loss), changes in stockholders’ equity, and cash flows for each of the fiscal years in the three-year period ended February 28, 2026, and the related notes (collectively, the consolidated financial statements), and our report dated April 22, 2026 expressed an unqualified opinion on those consolidated financial statements.

Basis for Opinion

The Company’s management is responsible for maintaining effective internal control over financial reporting and for its assessment of the effectiveness of internal control over financial reporting, included in the accompanying Management’s Annual Report on Internal Control over Financial Reporting. Our responsibility is to express an opinion on the Company’s internal control over financial reporting based on our audit. We are a public accounting firm registered with the PCAOB and are required to be independent with respect to the Company in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.

We conducted our audit in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether effective internal control over financial reporting was maintained in all material respects. Our audit of internal control over financial reporting included obtaining an understanding of internal control over financial reporting, assessing the risk that a material weakness exists, and testing and evaluating the design and operating effectiveness of internal control based on the assessed risk. Our audit also included performing such other procedures as we considered necessary in the circumstances. We believe that our audit provides a reasonable basis for our opinion.

Definition and Limitations of Internal Control Over Financial Reporting

A company’s internal control over financial reporting is a process designed to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles. A company’s internal control over financial reporting includes those policies and procedures that (1) pertain to the maintenance of records that, in reasonable detail, accurately and fairly reflect the transactions and dispositions of the assets of the company; (2) provide reasonable assurance that transactions are recorded as necessary to permit preparation of financial statements in accordance with generally accepted accounting principles, and that receipts and expenditures of the company are being made only in accordance with authorizations of management and directors of the company; and (3) provide reasonable assurance regarding prevention or timely detection of unauthorized acquisition, use, or disposition of the company’s assets that could have a material effect on the financial statements.

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PART II			ITEM 8. FINANCIAL STATEMENTS AND SUPPLEMENTARY DATA			Table of Contents

Because of its inherent limitations, internal control over financial reporting may not prevent or detect misstatements. Also, projections of any evaluation of effectiveness to future periods are subject to the risk that controls may become inadequate because of changes in conditions, or that the degree of compliance with the policies or procedures may deteriorate.

/s/ KPMG LLP

Rochester, New York

April 22, 2026

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PART II			ITEM 8. FINANCIAL STATEMENTS AND SUPPLEMENTARY DATA			Table of Contents

Report of Independent Registered Public Accounting Firm

To the Stockholders and Board of Directors

Constellation Brands, Inc.:

Opinion on the Consolidated Financial Statements

We have audited the accompanying consolidated balance sheets of Constellation Brands, Inc. and subsidiaries (the Company) as of February 28, 2026 and 2025, the related consolidated statements of comprehensive income (loss), changes in stockholders’ equity, and cash flows for each of the fiscal years in the three-year period ended February 28, 2026, and the related notes (collectively, the consolidated financial statements). In our opinion, the consolidated financial statements present fairly, in all material respects, the financial position of the Company as of February 28, 2026 and 2025, and the results of its operations and its cash flows for each of the fiscal years in the three-year period ended February 28, 2026, in conformity with U.S. generally accepted accounting principles.

We also have audited, in accordance with the standards of the Public Company Accounting Oversight Board (United States) (PCAOB), the Company’s internal control over financial reporting as of February 28, 2026, based on criteria established in Internal Control - Integrated Framework (2013) issued by the Committee of Sponsoring Organizations of the Treadway Commission, and our report dated April 22, 2026 expressed an unqualified opinion on the effectiveness of the Company’s internal control over financial reporting.

Basis for Opinion

These consolidated financial statements are the responsibility of the Company’s management. Our responsibility is to express an opinion on these consolidated financial statements based on our audits. We are a public accounting firm registered with the PCAOB and are required to be independent with respect to the Company in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.

We conducted our audits in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the consolidated financial statements are free of material misstatement, whether due to error or fraud. Our audits included performing procedures to assess the risks of material misstatement of the consolidated financial statements, whether due to error or fraud, and performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the consolidated financial statements. Our audits also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the consolidated financial statements. We believe that our audits provide a reasonable basis for our opinion.

Critical Audit Matter

The critical audit matter communicated below is a matter arising from the current period audit of the consolidated financial statements that was communicated or required to be communicated to the audit committee and that: (1) relates to accounts or disclosures that are material to the consolidated financial statements and (2) involved our especially challenging, subjective, or complex judgments. The communication of a critical audit matter does not alter in any way our opinion on the consolidated financial statements, taken as a whole, and we are not, by communicating the critical audit matter below, providing a separate opinion on the critical audit matter or on the accounts or disclosures to which it relates.

Unrecognized tax benefits

As discussed in Notes 1 and 14 to the consolidated financial statements, the Company recognizes a tax benefit from an uncertain tax position when it is more likely than not that the position will be sustained upon examination. The Company has recorded unrecognized tax benefits of $254.1 million as of February 28, 2026.

We identified the evaluation of certain of the Company’s unrecognized tax benefits as a critical audit matter. Specifically, complex auditor judgment, including the involvement of tax and valuation professionals with specialized

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PART II			ITEM 8. FINANCIAL STATEMENTS AND SUPPLEMENTARY DATA			Table of Contents

skills and knowledge, was required in evaluating the Company’s interpretation of tax law and its estimate of the ultimate resolution of its tax positions.

The following are the primary procedures we performed to address this critical audit matter. We evaluated the design and tested the operating effectiveness of certain internal controls related to the Company’s process to evaluate uncertain tax positions. This included controls related to the interpretation of tax law, its application in the liability estimation process, and the review of activity that could result in changes to the Company’s unrecognized tax benefits. We involved tax professionals with specialized skills and knowledge, who assisted in evaluating the Company’s interpretation of tax law and tax authority rulings and in performing an independent assessment of certain of the Company’s tax positions and the amount of unrecognized tax benefit, if any, and comparing the results to the Company’s assessment. We also involved valuation professionals with specialized skills and knowledge, who assisted in assessing certain transfer pricing studies for compliance with applicable laws and regulations.

/s/ KPMG LLP

We have served as the Company’s auditor since 2002.

Rochester, New York

April 22, 2026

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PART II			ITEM 8. FINANCIAL STATEMENTS AND SUPPLEMENTARY DATA			Table of Contents

CONSTELLATION BRANDS, INC. AND SUBSIDIARIES

CONSOLIDATED BALANCE SHEETS

(in millions, except share and per share data)

			February 28, 2026						February 28, 2025
ASSETS
Current assets:
Cash and cash equivalents			$	102.4					$	68.1
Accounts receivable			658.2						736.5
Inventories			1,433.9						1,437.2
Prepaid expenses and other			711.8						561.1
Assets held for sale			—						913.5
Total current assets			2,906.3						3,716.4
Property, plant, and equipment, net			8,520.9						7,409.8
Goodwill			5,233.9						5,126.8
Intangible assets			2,533.0						2,532.3
Deferred income taxes			1,370.3						1,805.3
Other assets			1,336.1						1,061.7
Total assets			$	21,900.5					$	21,652.3
LIABILITIES AND STOCKHOLDERS’ EQUITY
Current liabilities:
Short-term borrowings			$	272.0					$	806.7
Current maturities of long-term debt			603.6						1,402.0
Accounts payable			960.2						939.8
Other accrued expenses and liabilities			854.0						886.7
Total current liabilities			2,689.8						4,035.2
Long-term debt, less current maturities			9,692.9						9,289.0
Deferred income taxes and other liabilities			1,130.9						1,193.3
Total liabilities			13,513.6						14,517.5
Commitments and contingencies (Note 17)
CBI stockholders’ equity:
Preferred Stock, $0.01 par value – Authorized, 1,000,000 shares; Issued, none			—						—
Class A Stock, $0.01 par value – Authorized, 322,000,000 shares; Issued, 212,699,542 shares and 212,698,298 shares, respectively			2.1						2.1
Class 1 Stock, $0.01 par value – Authorized, 25,000,000 shares; Issued, 25,923 shares and 27,037 shares, respectively			—						—
Additional paid-in capital			2,185.7						2,144.6
Retained earnings			13,574.4						12,603.4
Accumulated other comprehensive income (loss)			423.2						(662.7)
Class A Stock in treasury, at cost, 39,927,096 shares and 34,505,141 shares, respectively			(8,103.0)						(7,205.4)
Total CBI stockholders’ equity			8,082.4						6,882.0
Noncontrolling interests			304.5						252.8
Total stockholders’ equity			8,386.9						7,134.8
Total liabilities and stockholders’ equity			$	21,900.5					$	21,652.3

The accompanying notes are an integral part of these statements.

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PART II			ITEM 8. FINANCIAL STATEMENTS AND SUPPLEMENTARY DATA			Table of Contents

CONSTELLATION BRANDS, INC. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS)

(in millions, except per share data)

			For the Years Ended
			February 28, 2026						February 28, 2025						February 29, 2024
NET INCOME (LOSS) ATTRIBUTABLE TO CBI
Sales			$	9,755.5					$	10,956.9					$	10,711.0
Excise taxes			(616.5)						(748.2)						(749.2)
Net sales			9,139.0						10,208.7						9,961.8
Cost of product sold			(4,427.5)						(4,894.1)						(4,944.3)
Gross profit			4,711.5						5,314.6						5,017.5
Selling, general, and administrative expenses			(1,848.4)						(1,950.0)						(1,832.7)
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)
Operating income (loss)			2,721.4						354.9						3,169.7
Income (loss) from unconsolidated investments			9.0						(26.3)						(511.8)
Interest expense, net			(352.6)						(411.4)						(436.1)
Income (loss) before income taxes			2,377.8						(82.8)						2,221.8
(Provision for) benefit from income taxes			(621.0)						51.7						(456.6)
Net income (loss)			1,756.8						(31.1)						1,765.2
Net (income) loss attributable to noncontrolling interests			(70.1)						(50.3)						(37.8)
Net income (loss) attributable to CBI			$	1,686.7					$	(81.4)					$	1,727.4
CLASS A STOCK
Net income (loss) per common share attributable to CBI – basic			$	9.62					$	(0.45)					$	9.42
Net income (loss) per common share attributable to CBI – diluted			$	9.61					$	(0.45)					$	9.39
Weighted average common shares outstanding – basic			175.414						181.476						183.307
Weighted average common shares outstanding – diluted			175.568						181.476						183.959
Cash dividends declared per common share			$	4.08					$	4.04					$	3.56

COMPREHENSIVE INCOME (LOSS) ATTRIBUTABLE TO CBI
Net income (loss)			$	1,756.8					$	(31.1)					$	1,765.2
Other comprehensive income (loss), net of income tax effect:
Foreign currency translation adjustments			858.0						(818.7)						293.1
Unrealized net gain (loss) on derivative instruments			277.5						(256.6)						70.0
Pension/postretirement adjustments			(5.3)						2.2						1.2
Share of other comprehensive income (loss) of equity method investments			(0.2)						(10.6)						—
Other comprehensive income (loss), net of income tax effect			1,130.0						(1,083.7)						364.3
Comprehensive income (loss)			2,886.8						(1,114.8)						2,129.5
Comprehensive (income) loss attributable to noncontrolling interests			(114.2)						(6.1)						(53.8)
Comprehensive income (loss) attributable to CBI			$	2,772.6					$	(1,120.9)					$	2,075.7

The accompanying notes are an integral part of these statements.

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PART II			ITEM 8. FINANCIAL STATEMENTS AND SUPPLEMENTARY DATA			Table of Contents

CONSTELLATION BRANDS, INC. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS’ EQUITY

(in millions)

			Class A Stock						Additional Paid-in Capital						Retained Earnings						Accumulated Other Comprehensive Income (Loss)						Treasury Stock						Non-controlling Interests						Total
Balance at February 28, 2023			$	2.1					$	1,903.0					$	12,343.9					$	28.5					$	(5,863.9)					$	320.3					$	8,733.9
Comprehensive income (loss):
Net income (loss)			—						—						1,727.4						—						—						37.8						1,765.2
Other comprehensive income (loss), net of income tax effect			—						—						—						348.3						—						16.0						364.3
Comprehensive income (loss)																																							2,129.5
Repurchase of shares			—						—						—						—						(249.7)						—						(249.7)
Dividends declared			—						—						(654.1)						—						—						—						(654.1)
Noncontrolling interest distributions			—						—						—						—						—						(52.6)						(52.6)
Shares issued under equity compensation plans			—						80.6						—						—						13.3						—						93.9
Stock-based compensation			—						63.7						—						—						—						—						63.7
Balance at February 29, 2024			2.1						2,047.3						13,417.2						376.8						(6,100.3)						321.5						10,064.6
Comprehensive income (loss):
Net income (loss)			—						—						(81.4)						—						—						50.3						(31.1)
Other comprehensive income (loss), net of income tax effect			—						—						—						(1,039.5)						—						(44.2)						(1,083.7)
Comprehensive income (loss)																																							(1,114.8)
Repurchase of shares			—						—						—						—						(1,123.8)						—						(1,123.8)
Dividends declared			—						—						(732.4)						—						—						—						(732.4)
Noncontrolling interest distributions			—						—						—						—						—						(57.5)						(57.5)
Shares issued under equity compensation plans			—						33.5						—						—						18.7						—						52.2
Stock-based compensation			—						71.9						—						—						—						—						71.9
Purchase of noncontrolling interest			—						(8.1)						—						—						—						(17.3)						(25.4)
Balance at February 28, 2025			2.1						2,144.6						12,603.4						(662.7)						(7,205.4)						252.8						7,134.8
Comprehensive income (loss):
Net income (loss)			—						—						1,686.7						—						—						70.1						1,756.8
Other comprehensive income (loss), net of income tax effect			—						—						—						1,085.9						—						44.1						1,130.0
Comprehensive income (loss)																																							2,886.8
Repurchase of shares			—						—						—						—						(924.1)						—						(924.1)
Dividends declared			—						—						(715.7)						—						—						—						(715.7)
Noncontrolling interest distributions			—						—						—						—						—						(62.5)						(62.5)
Shares issued under equity compensation plans			—						(27.2)						—						—						26.5						—						(0.7)
Stock-based compensation			—						68.3						—						—						—						—						68.3
Balance at February 28, 2026			$	2.1					$	2,185.7					$	13,574.4					$	423.2					$	(8,103.0)					$	304.5					$	8,386.9

The accompanying notes are an integral part of these statements.

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PART II			ITEM 8. FINANCIAL STATEMENTS AND SUPPLEMENTARY DATA			Table of Contents

CONSTELLATION BRANDS, INC. AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF CASH FLOWS (in millions)
			For the Years Ended
			February 28, 2026						February 28, 2025						February 29, 2024
CASH FLOWS FROM OPERATING ACTIVITIES
Net income (loss)			$	1,756.8					$	(31.1)					$	1,765.2
Adjustments to reconcile net income (loss) to net cash provided by operating activities:
Unrealized net (gain) loss on securities measured at fair value			5.0						47.9						85.4
Deferred tax provision (benefit)			510.5						(210.3)						147.9
Depreciation			418.7						445.7						427.9
Stock-based compensation			67.7						72.2						63.6
Equity in (earnings) losses of equity method investees and related activities, net of distributed earnings			(2.5)						(5.4)						321.2
Noncash lease expense			127.4						112.4						91.3
Equity method investments impairment			1.5						8.7						136.1
Asset impairment and related expenses			109.8						478.0						—
(Gain) loss on sale of business			31.9						(266.0)						15.1
Goodwill and intangible assets impairment			—						2,797.7						—
Change in operating assets and liabilities, net of effects from purchase and sale of business:
Accounts receivable			82.9						90.3						73.2
Inventories			(48.3)						(152.2)						(182.3)
Prepaid expenses and other current assets			3.4						(89.4)						(76.5)
Accounts payable			(3.7)						101.5						24.7
Contract liabilities			(71.5)						(35.5)						(11.0)
Other accrued expenses and liabilities			(148.0)						(48.9)						(115.9)
Other			(172.6)						(163.4)						14.1
Total adjustments			912.2						3,183.3						1,014.8
Net cash provided by (used in) operating activities			2,669.0						3,152.2						2,780.0
CASH FLOWS FROM INVESTING ACTIVITIES
Purchase of property, plant, and equipment			(875.0)						(1,214.1)						(1,269.1)
Purchase of business, net of cash acquired			—						(158.7)						(7.5)
Investments in equity method investees and securities			(18.0)						(35.0)						(34.6)
Proceeds from sale of assets			59.0						35.5						21.9
Proceeds from sale of business			850.5						409.2						5.4
Other investing activities			—						(11.7)						(2.0)
Net cash provided by (used in) investing activities			16.5						(974.8)						(1,285.9)

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PART II			ITEM 8. FINANCIAL STATEMENTS AND SUPPLEMENTARY DATA			Table of Contents

CONSTELLATION BRANDS, INC. AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF CASH FLOWS (in millions)
			For the Years Ended
			February 28, 2026						February 28, 2025						February 29, 2024
CASH FLOWS FROM FINANCING ACTIVITIES
Proceeds from issuance of long-term debt			997.7						—						1,144.4
Principal payments of long-term debt			(1,404.4)						(957.0)						(809.7)
Net proceeds from (repayments of) short-term borrowings			(534.8)						565.3						(923.9)
Dividends paid			(715.7)						(731.8)						(653.8)
Purchases of treasury stock			(924.1)						(1,123.8)						(249.7)
Proceeds from shares issued under equity compensation plans			7.7						73.8						104.5
Payments of minimum tax withholdings on stock-based payment awards			(9.4)						(13.8)						(11.2)
Payments of debt issuance, debt extinguishment, and other financing costs			(9.0)						(0.1)						(7.7)
Distributions to noncontrolling interests			(62.5)						(57.5)						(52.6)
Payment of contingent consideration			(1.5)						(0.7)						(14.9)
Purchase of noncontrolling interest			—						(16.2)						—
Net cash provided by (used in) financing activities			(2,656.0)						(2,261.8)						(1,474.6)
Effect of exchange rate changes on cash and cash equivalents			4.8						0.1						(0.6)
Net increase (decrease) in cash and cash equivalents			34.3						(84.3)						18.9
Cash and cash equivalents, beginning of year			68.1						152.4						133.5
Cash and cash equivalents, end of year			$	102.4					$	68.1					$	152.4
SUPPLEMENTAL DISCLOSURES OF CASH FLOW INFORMATION
Cash paid during the year
Interest, net of interest capitalized			$	346.2					$	416.1					$	418.6
Income taxes, net of refunds received			$	173.6					$	197.1					$	333.5
Noncash investing and financing activities
Additions to property, plant, and equipment			$	125.2					$	143.1					$	269.6
Purchase of noncontrolling interest			$	—					$	9.2					$	—

The accompanying notes are an integral part of these statements.

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CONSTELLATION BRANDS, INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

FEBRUARY 28, 2026

1. DESCRIPTION OF BUSINESS, BASIS OF PRESENTATION, AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

DESCRIPTION OF BUSINESS

We operate primarily in the beverage alcohol industry with operations in the U.S., Mexico, New Zealand, and Italy producing a powerful portfolio of consumer-connected, high-end imported beer brands, and exclusively higher-end wine and spirits brands.

BASIS OF PRESENTATION

Principles of consolidation

Our consolidated financial statements include our accounts and our majority-owned and controlled domestic and foreign subsidiaries. In addition, we have an equally-owned joint venture with Owens-Illinois. The joint venture owns and operates a state-of-the-art glass production plant which provides bottles exclusively for the Nava Brewery. We have determined that we are the primary beneficiary of this variable interest entity and accordingly, the results of operations of the joint venture are reported in the Beer segment and are included in our consolidated results of operations. All intercompany accounts and transactions are eliminated in consolidation.

Revision of prior period Note

We revised a prior period Note disclosure to correct an immaterial error in the presentation of changes in outstanding obligations under our supply chain finance program (see Note 17).

Equity method investments

If we are not required to consolidate our investment in another entity, we use the equity method when we (i) can exercise significant influence over the other entity and (ii) hold common stock and/or in-substance common stock of the other entity. Under the equity method, investments are carried at cost, plus or minus our equity in the increases and decreases in the investee’s net assets after the date of acquisition. We monitor our equity method investments for factors indicating other-than-temporary impairment. Dividends received from the investee reduce the carrying amount of the investment.

Management’s use of estimates

The preparation of financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates.

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

Revenue recognition

Our revenue (referred to in our financial statements as “sales”) consists primarily of the sale of beer, wine, and spirits domestically in the U.S. Sales of products are for cash or otherwise agreed-upon credit terms. Our payment terms vary by location and customer, however, the time period between when revenue is recognized and when payment is due is not significant. Our Customers consist primarily of wholesale distributors. Our revenue generating activities have a single performance obligation and are recognized at the point in time when control transfers and our obligation has been fulfilled, which is when the related goods are shipped or delivered to the customer, depending upon the method of distribution, and shipping terms. We have elected to treat shipping as a fulfillment activity. Revenue is

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measured as the amount of consideration we expect to receive in exchange for the sale of our product. Our sales terms do not allow for a right of return except for matters related to any manufacturing defects on our part. Amounts billed to Customers for shipping and handling are included in sales.

As noted, the majority of our revenues are generated from the domestic sale of beer, wine, and spirits to wholesale distributors in the U.S. Our other revenue generating activities include the export of certain of our products to select international markets, as well as the sale of our products through state alcohol beverage control agencies and 3-tier eCommerce and DTC channels. We have evaluated these other revenue generating activities under the disaggregation disclosure criteria and concluded that they are immaterial for separate disclosure. See Note 23 for disclosure of net sales by product type.

Sales reflect reductions attributable to consideration given to Customers in various customer incentive programs, including pricing discounts on single transactions, volume discounts, promotional and advertising allowances, coupons, and rebates. This variable consideration is recognized as a reduction of the transaction price based upon expected amounts at the time revenue for the corresponding product sale is recognized. For example, customer promotional discount programs are entered into with certain distributors for certain periods of time. The amount ultimately reimbursed to distributors is determined based upon agreed-upon promotional discounts which are applied to distributors’ sales to retailers. Other common forms of variable consideration include volume rebates for meeting established sales targets, and coupons and mail-in rebates offered to the consumer. The determination of the reduction of the transaction price for variable consideration requires that we make certain estimates and assumptions that affect the timing and amounts of revenue and liabilities recognized. We estimate this variable consideration by taking into account factors such as the nature of the promotional activity, historical information, and current trends, availability of actual results and expectations of customer and consumer behavior.

Excise taxes remitted to tax authorities are government-imposed excise taxes primarily on our beverage alcohol products. Excise taxes are shown on a separate line item as a reduction of sales and are recognized in our results of operations when the related product sale is recognized. Excise taxes are recognized as a current liability in other accrued expenses and liabilities, with the liability subsequently reduced when the taxes are remitted to the tax authority.

Cost of product sold

The types of costs included in cost of product sold are raw materials, packaging materials, manufacturing costs, plant administrative support and overheads, and freight and warehouse costs (including distribution network costs). Distribution network costs include inbound freight charges and outbound shipping and handling costs, purchasing and receiving costs, inspection costs, and warehousing and internal transfer costs.

Selling, general, and administrative expenses

The types of costs included in selling, general, and administrative expenses consist predominantly of advertising and non-manufacturing administrative and overhead costs. We expense advertising (hereafter referred to as “marketing”) costs as incurred, shown, or distributed. Marketing expense for the years ended February 28, 2026, February 28, 2025, and February 29, 2024, was $867.4 million, $931.2 million, and $853.5 million, respectively.

Foreign currency translation

The functional currency of our foreign subsidiaries is generally the respective local currency. The translation from the applicable foreign currencies to U.S. dollars is performed for balance sheet accounts using exchange rates in effect at the balance sheet date and for revenue and expense accounts using a weighted average exchange rate for the period. The resulting translation adjustments are recognized as a component of AOCI. Gains or losses resulting from foreign currency denominated transactions are included in selling, general, and administrative expenses.

Cash and cash equivalents

Cash equivalents consist of highly liquid investments with an original maturity when purchased of three months or less and are stated at cost, which approximates fair value.

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Inventories

Inventories are stated at the lower of cost (primarily computed in accordance with the first-in, first-out method) or net realizable value. Elements of cost include materials, labor, and overhead.

Bulk wine inventories are included as in-process inventories within current assets, in accordance with the general practices of the wine industry, although a portion of such inventories may be aged for periods greater than one year. A substantial portion of barreled whiskey will not be sold within one year because of the duration of the aging process. All barreled spirits are classified as in-process inventories and are included in current assets, in accordance with industry practice. Warehousing, insurance, value added taxes, and other carrying charges applicable to barreled spirits held for aging are included in inventory costs.

We assess the valuation of our inventories and reduce the carrying value of those inventories that are obsolete or in excess of our forecasted usage to their estimated net realizable value based on analyses and assumptions including, but not limited to, historical usage, future demand, and market requirements.

Property, plant, and equipment, net

Property, plant, and equipment, net is stated at cost. Major additions and improvements are recognized as an increase to the property accounts, while maintenance and repairs are expensed as incurred. The cost of properties sold or otherwise disposed of and the related accumulated depreciation are eliminated from the balance sheet accounts at the time of disposal and resulting gains and losses are included as a component of operating income (loss).

Interest incurred relating to expansion, optimization, and construction, including modular capacity additions, at our facilities is capitalized to construction in progress. We cease the capitalization of interest when construction activities are substantially completed and the facility and related assets are available for their intended use. At this point, construction in progress is transferred to the appropriate asset class.

Depreciation

Depreciation is computed primarily using the straight-line method over the following estimated useful lives:

			Years
Land improvements and vineyards			15 to 32
Buildings and improvements			10 to 50
Machinery, equipment, and motor vehicles			3 to 35

Derivative instruments

We enter into derivative instruments to manage our exposure to fluctuations in foreign currency exchange rates, commodity prices, and interest rates. We enter into derivatives for risk management purposes only, including derivatives designated in hedge accounting relationships as well as those derivatives utilized as economic hedges. We do not enter into derivatives for trading or speculative purposes. We recognize all derivatives as either assets or liabilities and measure those instruments at estimated fair value (see Notes 7 and 8). We present our derivative positions gross on our balance sheets.

The change in the fair value of outstanding cash flow and net investment hedges is deferred in stockholders’ equity as a component of AOCI. For all periods presented herein, gains or losses deferred in stockholders’ equity as a component of AOCI are recognized in our results of operations in the same period in which the hedged items are recognized and on the same financial statement line item as the hedged items.

Changes in fair values for derivative instruments not designated in a hedge accounting relationship are recognized directly in our results of operations each period and on the same financial statement line item as the hedged item. For purposes of measuring segment operating performance, the net gain (loss) from the changes in fair value of our undesignated commodity derivative contracts, prior to settlement, is reported outside of segment operating results

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until such time that the underlying exposure is recognized in the segment operating results. Upon 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 our operating segment results to reflect the economic effects of the commodity derivative contracts without the resulting unrealized mark to fair value volatility.

Cash flows from the settlement of derivatives, including both economic hedges and those designated in hedge accounting relationships, appear on our statements of cash flows in the same categories as the cash flows of the hedged items.

Fair value of financial instruments

We calculate the estimated fair value of financial instruments using quoted market prices whenever available. When quoted market prices are not available, we use standard pricing models for various types of financial instruments (such as forwards, options, swaps, and convertible debt) which take into account the present value of estimated future cash flows (see Note 8).

Goodwill and other intangible assets

Goodwill is allocated to the reporting unit in which the business that created the goodwill resides. A reporting unit is an operating segment, or a business unit one level below that operating segment, for which discrete financial information is prepared and regularly reviewed by segment management. We review our goodwill and indefinite-lived intangible assets annually for impairment, or sooner, if events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. We use January 1 as our annual impairment test measurement date. Indefinite-lived intangible assets consist principally of trademarks. Intangible assets determined to have a finite life, primarily customer relationships, are amortized over their estimated useful lives and are subject to review for impairment when events or circumstances indicate that the carrying amount of an asset may not be recoverable. Note 10 provides a summary of intangible assets segregated between amortizable and nonamortizable amounts.

Income taxes

We use the asset and liability method of accounting for income taxes. This method accounts for deferred income taxes by applying statutory rates in effect at the balance sheet date to the difference between the financial reporting and tax bases of assets and liabilities. Certain income earned by foreign subsidiaries is subject to GILTI, a U.S. tax on foreign earnings. We treat the tax effect of GILTI as a current period tax expense when incurred. We provide deferred income taxes, consisting primarily of foreign withholding and state taxes, on all applicable unremitted earnings of our foreign subsidiaries. Interest and penalties are recognized as a component of (provision for) benefit from income taxes.

We recognize a tax benefit from an uncertain tax position when it is more likely than not the position will be sustained upon examination. We measure and recognize the tax benefit from such a position based on the largest benefit that has a greater than 50% likelihood of being realized upon ultimate settlement. Due to the complexity of some of these uncertainties, the ultimate resolution may result in a payment that is materially different from our current estimate of the unrecognized tax benefit liabilities. In addition, changes in existing tax laws or rates could significantly change our current estimate of our unrecognized tax benefit liabilities. These differences will be reflected as increases or decreases to income tax expense in the period in which they are determined. Changes in current estimates, if significant, could have a material adverse impact on our financial statements.

Leases

We recognize right-of-use assets and lease liabilities on our balance sheet. We assess service arrangements to determine if an asset is explicitly or implicitly specified in the agreement and if we have the right to control the use of the identified asset.

The right-of-use asset and lease liability are initially measured at the present value of future lease payments, discounted using the interest rate implicit in the lease or, if that rate cannot be readily determined, our secured incremental borrowing rate. The incremental borrowing rates are determined using a portfolio approach based on

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publicly available information in connection with our unsecured borrowing rates. We elected to recognize expenses for leases with a term of 12 months or less on a straight-line basis over the lease term and not to recognize these short-term leases on the balance sheet.

The right-of-use asset and lease liability are calculated including options to extend or to terminate the lease when we determine that it is reasonably certain that we will exercise those options. In making that determination, we consider various existing economic and market factors, business strategies as well as the nature, length, and terms of the agreement. Based on our evaluation using these factors, we concluded that the exercise of renewal options or early termination options would not be reasonably certain in determining the lease term at commencement for leases we currently have in place. Assumptions made at the commencement date are re-evaluated upon occurrence of certain events such as a lease modification.

Certain of our contractual arrangements may contain both lease and non-lease components. We elected to measure the lease liability by combining the lease and non-lease components as a single lease component for all asset classes.

Certain of our leases include variable lease payments, including payments that depend on an index or rate, as well as variable payments for items such as raw materials, labor, property taxes, insurance, maintenance, and other operating expenses associated with leased assets. Certain grape purchasing arrangements include variable payments based on actual tonnage and price of grapes. In addition, certain third-party logistics arrangements include variable payments that vary depending on throughput. Such variable lease payments are excluded from the calculation of the right-of-use asset and the lease liability and are recognized in the period in which the obligation is incurred.

Indemnification liabilities

We have indemnified respective parties against certain liabilities that may arise in connection with certain acquisitions and divestitures. Indemnification liabilities are recognized when probable and estimable and included in deferred income taxes and other liabilities (see Note 17).

Stock-based employee compensation

We have two stock-based employee compensation plans (see Note 19). We apply grant date fair-value-based measurement methods in accounting for our stock-based payment arrangements and recognize all costs resulting from stock-based payment transactions, net of expected forfeitures, ratably over the requisite service period. Stock-based awards are subject to specific vesting conditions, generally time vesting, or upon retirement, disability, or death of the employee (as defined by the plan), if earlier. For awards granted to retirement-eligible employees, we recognize compensation expense ratably over the period from the date of grant to the date of retirement-eligibility.

Net income (loss) per common share attributable to CBI

We have one class of common stock with a material number of shares outstanding: Class A Stock. In addition, we have another class of common stock with an immaterial number of shares outstanding: Class 1 Stock.

Net income (loss) per common share attributable to CBI (hereafter referred to as “net income (loss) per common share”) – basic for Class A Stock has been computed based on the weighted average shares of common stock outstanding during the period. Net income (loss) per common share – diluted for Class A Stock reflects the weighted average shares of common stock plus the effect of dilutive securities outstanding during the period using the treasury stock method. The effect of dilutive securities includes the impact of outstanding stock-based awards. The dilutive computation does not assume conversion, exercise, or contingent issuance of securities that would have an anti-dilutive effect on the net income (loss) per common share.

For additional information on net income (loss) per common share, see Note 20.

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ACCOUNTING PRONOUNCEMENTS

Recently adopted accounting pronouncement

Income taxes

In December 2023, the FASB issued a standard to enhance the transparency and decision usefulness of income tax disclosures. This standard requires public companies to disclose (i) specific categories in the rate reconciliation and provide additional information for reconciling items that meet a quantitative threshold, (ii) the amount of income taxes paid disaggregated by federal, state, and foreign taxes and disaggregated by material individual jurisdictions, and (iii) income from continuing operations before income tax expense disaggregated between domestic and foreign and income tax expense from continuing operations disaggregated by federal, state, and foreign. We adopted these disclosures for our annual period ending February 28, 2026, and applied these amendments prospectively (see Note 14).

Accounting pronouncements not yet adopted

Disaggregation of income statement expenses

In November 2024, the FASB issued a standard requiring disaggregated information about certain income statement expense line items to be disclosed on an annual and interim basis. We are required to adopt these disclosures for our annual period ending February 29, 2028, with early adoption permitted and this standard may be applied retrospectively. We expect this standard to impact our disclosures with no material impacts to our results of operations, cash flows, or financial condition.

2. ACQUISITIONS AND DIVESTITURES

ACQUISITIONS

Sea Smoke

In June 2024, we acquired the Sea Smoke business, including a California-based luxury wine brand, vineyards, and a production facility for $158.7 million, net of closing and post-closing adjustments. This transaction also included the acquisition of goodwill, inventory, and a trademark. The results of operations of Sea Smoke are reported in the Wine and Spirits segment and have been included in our consolidated results of operations from the date of acquisition.

DIVESTITURES

2025 Wine Divestitures

On June 2, 2025, we sold and, in certain instances, exclusively licensed the trademarks of a portion of our wine and spirits business, primarily centered around our then-owned mainstream wine brands and associated inventory, wineries, vineyards, offices, and facilities. The net cash proceeds from the 2025 Wine Divestitures were used for repayment of debt (see Note 13). Prior to the completion of the 2025 Wine Divestitures, we recorded the results of operations of the divested and exclusively licensed brands in the Wine and Spirits segment. The following table summarizes the net loss recognized in connection with these divestitures for the year ended February 28, 2026:

(in millions)
Cash received from buyer									$	845.9
Net assets sold									(874.1)
Direct costs to sell									(2.8)
Loss on sale of business (1)									$	(31.0)

(1)Included in gain (loss) on sale of business within our consolidated results of operations.

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SVEDKA Divestiture

On January 6, 2025, we sold the SVEDKA brand and related assets, primarily including inventory and equipment. The net cash proceeds from the SVEDKA Divestiture were used for general corporate purposes, including funding share repurchases, capital expenditures, and repayment of debt. Prior to the SVEDKA Divestiture, we recorded the results of operations of the SVEDKA brand in the Wine and Spirits segment. The following table summarizes the net gain recognized in connection with this divestiture, for the year ended February 28, 2025:

(in millions)
Cash received from buyer									$	409.2
Net assets sold									(139.7)
Direct costs to sell									(3.5)
Gain on sale of business (1)									$	266.0

(1)Included in gain (loss) on sale of business within our consolidated results of operations.

Craft Beer Divestitures

In June 2023, we completed the Craft Beer Divestitures. Prior to the Craft Beer Divestitures, we recorded the results of operations of such craft beer brands in the Beer segment.

Assets held for sale

The 2025 Wine Divestitures largely resulted in both (i) $879.8 million of wine and spirits net assets being reclassified to held for sale as of February 28, 2025, and (ii) a $478.0 million assets held for sale impairment. The impairment loss was included in asset impairment and related assets within our consolidated results of operations for the year ended February 28, 2025. The carrying value of assets held for sale as of February 28, 2025, consisted of the following:

(in millions)
ASSETS
Inventories									$	788.7
Prepaid expenses and other									0.5
Property, plant, and equipment, net									474.4
Intangible assets									127.9
Less: Assets held for sale impairment									(478.0)
Assets held for sale									913.5
LIABILITIES
Other accrued expenses and liabilities (1)									33.7
Net assets held for sale									$	879.8

(1)Liabilities held for sale are included in the consolidated balance sheet within other accrued expenses and liabilities.

3. RESTRUCTURING

The 2025 Restructuring Initiative is an enterprise-wide cost savings and restructuring initiative designed to help optimize the performance of our business, including through enhanced organizational efficiency and optimized expenditures across our organization. The majority of the work associated with the 2025 Restructuring Initiative was executed within the year ended February 28, 2026, and is now estimated to result in nearly $130 million of cumulative pre-tax costs once all phases are fully implemented. These cumulative costs are expected to be comprised of (i) employee termination costs (50%) and (ii) consulting services as well as other costs, which primarily include contract termination costs (50%).

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We recognized pre-tax restructuring costs within selling, general, and administrative expenses in our consolidated results related to the 2025 Restructuring Initiative as follows:

									For the Years Ended
									February 28, 2026						February 28, 2025
(in millions)
Employee termination									$	15.1					$	46.9
Consulting services									52.7						2.8
Other									4.4						—
									$	72.2					$	49.7

Since the inception of the 2025 Restructuring Initiative, we have incurred the following pre-tax restructuring costs:

			Cumulative Costs as of February 28, 2026						Percent of Total Costs
(in millions)
Employee termination			$	62.0					51		%
Consulting services			55.5						46		%
Other			4.4						3		%
			$	121.9					100		%

The activity for the restructuring costs discussed above and the related accruals are as follows:

			Employee Termination						Consulting Services						Other						Total
(in millions)
Balance at February 28, 2025			$	46.9					$	2.8					$	—					$	49.7
Restructuring costs			15.1						52.7						4.4						72.2
Cash payments			(43.4)						(25.6)						(0.2)						(69.2)
Balance at February 28, 2026 (1)			$	18.6					$	29.9					$	4.2					$	52.7

(1)The total accrual was recorded in accrued restructuring within other accrued expenses and liabilities in our consolidated balance sheets.

4. INVENTORIES

The components of inventories are as follows:

			February 28, 2026						February 28, 2025
(in millions)
Raw materials and supplies			$	204.6					$	230.2
In-process inventories			549.5						540.9
Finished case goods			679.8						666.1
			$	1,433.9					$	1,437.2

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5. PREPAID EXPENSES AND OTHER

The major components of prepaid expenses and other are as follows:

			February 28, 2026						February 28, 2025
(in millions)
Value added taxes receivable			$	289.1					$	241.3
Derivative assets			179.5						67.2
Prepaid taxes			131.1						150.4
Other			112.1						102.2
			$	711.8					$	561.1

6. PROPERTY, PLANT, AND EQUIPMENT, NET

The major components of property, plant, and equipment, net are as follows:

			February 28, 2026						February 28, 2025
(in millions)
Land, land improvements, and vineyards			$	739.6					$	565.5
Buildings and improvements			2,320.8						1,907.9
Machinery, equipment, and motor vehicles			5,795.8						5,266.2
Construction in progress (1) (2)			2,759.8						2,218.1
			11,616.0						9,957.7
Less – Accumulated depreciation			(3,095.1)						(2,547.9)
			$	8,520.9					$	7,409.8

(1)We capitalized $89.7 million, $74.2 million, and $63.7 million of interest costs for the years ended February 28, 2026, February 28, 2025, and February 29, 2024, respectively, primarily due to the Brewery Projects.

(2)Initial production at the Veracruz Brewery is expected to commence around the middle of Fiscal 2027.

For the year ended February 28, 2026, in connection with strategic optimization activities within our Beer segment, we committed to the dismantling and abandonment of certain aged long-lived assets at the Obregón Brewery, resulting in a $57.7 million loss. This loss was included in asset impairment and related expenses within our consolidated results of operations.

In July 2024, we sold the remaining assets classified as held for sale at the Mexicali Brewery.

7. DERIVATIVE INSTRUMENTS

Overview

We are exposed to market risk from changes in foreign currency exchange rates, commodity prices, and interest rates, that could affect our results of operations and financial condition. The impact on our results and financial position and the amounts reported in our financial statements will vary based upon the currency, commodity, and interest rate movements during the period, the effectiveness and level of derivative instruments outstanding, and whether they are designated and qualify for hedge accounting.

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The estimated fair values of our derivative instruments change with fluctuations in currency rates, commodity prices, and/or interest rates and are expected to offset changes in the values of the underlying exposures. Our derivative instruments are held solely to manage our exposures to the aforementioned market risks as part of our normal business operations. We follow strict policies to manage these risks and do not enter into derivative instruments for trading or speculative purposes.

The aggregate notional value of outstanding derivative instruments is as follows:

			February 28, 2026						February 28, 2025
(in millions)
Derivative instruments designated as hedging instruments
Foreign currency contracts			$	2,080.9					$	2,843.6
Net investment hedge contracts			$	145.5					$	—
Pre-issuance hedge contracts			$	50.0					$	275.0
Derivative instruments not designated as hedging instruments
Foreign currency contracts			$	522.2					$	378.2
Commodity derivative contracts			$	335.5					$	322.1

Cash flow hedges

Our derivative instruments designated in hedge accounting relationships are designated as cash flow hedges. We are exposed to foreign denominated cash flow fluctuations primarily in connection with third party and intercompany sales and purchases. We primarily use foreign currency forward contracts to hedge certain of these risks. In addition, we utilize interest rate swap, treasury lock, and swap lock contracts periodically to manage our exposure to changes in interest rates. Derivatives managing our cash flow exposures generally mature within three years or less, with a maximum maturity of five years.

To qualify for hedge accounting treatment, the details of the hedging relationship must be formally documented at inception of the arrangement, including the risk management objective, hedging strategy, hedged item, specific risk that is being hedged, the derivative instrument, how effectiveness is being assessed, and how ineffectiveness will be measured. The derivative must be highly effective in offsetting changes in the cash flows of the risk being hedged. Throughout the term of the designated cash flow hedge relationship on at least a quarterly basis, a retrospective evaluation and prospective assessment of hedge effectiveness is performed based on quantitative and qualitative measures. All components of our derivative instruments’ gains or losses are included in the assessment of hedge effectiveness.

When we determine that a derivative instrument which qualified for hedge accounting treatment has ceased to be highly effective as a hedge, we discontinue hedge accounting prospectively. In the event the relationship is no longer effective, we recognize the change in the fair value of the hedging derivative instrument from the date the hedging derivative instrument became no longer effective immediately in our results of operations. We also discontinue hedge accounting prospectively when (i) a derivative expires or is sold, terminated, or exercised; (ii) it is no longer probable that the forecasted transaction will occur; or (iii) we determine that designating the derivative as a hedging instrument is no longer appropriate. When we discontinue hedge accounting prospectively, but the original forecasted transaction continues to be probable of occurring, the existing gain or loss of the derivative instrument remains in AOCI and is reclassified into earnings (losses) when the forecasted transaction occurs. When it becomes probable that the forecasted transaction will not occur, any remaining gain or loss in AOCI is recognized immediately in our results of operations.

Net investment hedge contracts

In April 2025, we entered into cross-currency swaps to hedge portions of our net investment in certain of our non-U.S. operations against fluctuations in foreign currency exchange rates. These cross-currency swaps are designated as

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net investment hedges and mature between April 2028 and April 2029. The changes in the fair value of these swaps are recognized as a component of other comprehensive income (loss) and reported in accumulated other comprehensive income (loss) in our consolidated balance sheets. The gain or loss will be subsequently reclassified into net earnings when the hedged net investment is either sold, liquidated, or substantially liquidated. We assess the effectiveness of our cross-currency swaps using the spot method. Under this method, the periodic interest settlements are recorded directly in earnings through interest expense, net. Accordingly, we recorded interest income of $1.9 million during the year ended February 28, 2026.

Undesignated hedges

Certain of our derivative instruments do not qualify for hedge accounting treatment; for others, we choose not to maintain the required documentation to apply hedge accounting treatment. These undesignated instruments are primarily used to economically hedge our exposure to fluctuations in the value of foreign currency denominated receivables and payables; foreign currency investments, primarily consisting of loans to subsidiaries and foreign-denominated investments, and cash flows related primarily to the repatriation of those loans or investments; and commodity prices, including aluminum, corn, diesel fuel, and natural gas prices. We primarily use foreign currency forward and option contracts, generally less than 12 months in duration, and commodity swap contracts, generally less than 36 months in duration, with a maximum maturity of four years, to hedge some of these risks. In addition, from time to time, we utilize interest rate swap contracts, generally less than six months in duration, to economically hedge our exposure to changes in interest rates associated with the financing of significant investments and acquisitions. Our derivative policy permits the use of undesignated derivatives as approved by senior management.

Credit risk

We are exposed to credit-related losses if the counterparties to our derivative contracts default. This credit risk is limited to the fair value of the derivative contracts. To manage this risk, we contract only with major financial institutions that have earned investment-grade credit ratings and with whom we have standard International Swaps and Derivatives Association agreements which allow for net settlement of the derivative contracts. We have also established counterparty credit guidelines that are regularly monitored. Because of these safeguards, we believe the risk of loss from counterparty default to be immaterial.

In addition, our derivative instruments are not subject to credit rating contingencies or collateral requirements. As of February 28, 2026, the estimated fair value of derivative instruments in a net liability position due to counterparties was less than $0.1 million. If we were required to settle the net liability position under these derivative instruments on February 28, 2026, we would have had sufficient available liquidity on hand to satisfy this obligation.

Results of period derivative activity

The estimated fair value and location of our derivative instruments on our balance sheets are as follows (see Note 8):

Assets															Liabilities
			February 28, 2026						February 28, 2025									February 28, 2026						February 28, 2025
(in millions)
Derivative instruments designated as hedging instruments
Foreign currency contracts:
Prepaid expenses and other			$	156.7					$	56.2					Other accrued expenses and liabilities			$	0.1					$	36.9
Other assets			$	177.6					$	39.3					Deferred income taxes and other liabilities			$	0.1					$	38.6
Pre-issuance hedge contracts:
Prepaid expenses and other			$	—					$	2.2					Other accrued expenses and liabilities			$	—					$	—

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Assets															Liabilities
			February 28, 2026						February 28, 2025									February 28, 2026						February 28, 2025
(in millions)
Net investment hedge contracts:
Other assets			$	—					$	—					Deferred income taxes and other liabilities			$	6.7					$	—
Derivative instruments not designated as hedging instruments
Foreign currency contracts:
Prepaid expenses and other			$	0.4					$	1.5					Other accrued expenses and liabilities			$	0.9					$	0.9
Commodity derivative contracts:
Prepaid expenses and other			$	22.4					$	7.3					Other accrued expenses and liabilities			$	5.3					$	8.8
Other assets			$	8.8					$	2.3					Deferred income taxes and other liabilities			$	2.1					$	4.0

The principal effect of our derivative instruments designated in cash flow hedging relationships on our results of operations, as well as OCI, net of income tax effect, is as follows:

Derivative Instruments in Designated Cash Flow Hedging Relationships						Net Gain (Loss) Recognized in OCI						Location of Net 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, 2026
Foreign currency contracts						$	364.7					Sales						$	0.9
												Cost of product sold						76.4
												Selling, general, and administrative expenses						0.3
Pre-issuance hedge contracts						(5.0)						Interest expense, net						(0.4)
						$	359.7											$	77.2
For the Year Ended February 28, 2025
Foreign currency contracts						$	(161.8)					Sales						$	0.8
												Cost of product sold						96.3
Pre-issuance hedge contracts						2.3						Interest expense, net						—
						$	(159.5)											$	97.1
For the Year Ended February 29, 2024
Foreign currency contracts						$	205.7					Sales						$	(0.1)
												Cost of product sold						137.3
Pre-issuance hedge contracts						(0.1)						Interest expense, net						(1.6)
						$	205.6											$	135.6

We expect $137.3 million of net gains, net of income tax effect, to be reclassified from AOCI to our results of operations within the next 12 months.

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The effect of our undesignated derivative instruments on our results of operations is as follows:

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, 2026
Commodity derivative contracts												Cost of product sold						$	23.6
Foreign currency contracts												Selling, general, and administrative expenses						5.5
																		$	29.1
For the Year Ended February 28, 2025
Commodity derivative contracts												Cost of product sold						$	(0.3)
Foreign currency contracts												Selling, general, and administrative expenses						(29.7)
																		$	(30.0)
For the Year Ended February 29, 2024
Commodity derivative contracts												Cost of product sold						$	(44.2)
Foreign currency contracts												Selling, general, and administrative expenses						14.6
																		$	(29.6)

8. FAIR VALUE OF FINANCIAL INSTRUMENTS

Authoritative guidance establishes a framework for measuring fair value, including a hierarchy for inputs used in measuring fair value that maximizes the use of observable inputs and minimizes the use of unobservable inputs by requiring that the most observable inputs be used when available. The hierarchy includes three levels:

• Level 1 inputs are quoted prices in active markets for identical assets or liabilities;

• Level 2 inputs include data points that are observable such as quoted prices for similar assets or liabilities in active markets, quoted prices for identical assets or similar assets or liabilities in markets that are not active, and inputs (other than quoted prices) such as volatility, interest rates, and yield curves that are observable for the asset or liability, either directly or indirectly; and

• Level 3 inputs are unobservable data points for the asset or liability, and include situations where there is little, if any, market activity for the asset or liability.

FAIR VALUE METHODOLOGY

The following methods and assumptions are used to estimate the fair value of our financial instruments:

Derivative instruments

Our derivative instruments consist of foreign currency forward and option contracts, commodity swap contracts, cross-currency swap contracts, interest rate swap contracts, and Pre-issuance hedge contracts. The fair value is estimated based on quoted market prices from respective counterparties. Quotes are corroborated by using discounted cash flow calculations based upon forward interest-rate yield curves, which are obtained from independent pricing services (Level 2 fair value measurement).

Short-term borrowings

Our short-term borrowings consist of our commercial paper program and the revolving credit facility under our senior credit facility. The revolving credit facility is a variable interest rate bearing note with a fixed margin, adjustable based upon our debt rating (as defined in our senior credit facility). For these short-term borrowings the carrying value approximates the fair value.

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Long-term debt

The fair value of our fixed interest rate long-term debt is estimated by discounting cash flows using interest rates currently available for debt with similar terms and maturities (Level 2 fair value measurement). As of February 28, 2026, the carrying amount of long-term debt, including the current portion, was $10,296.5 million, compared with an estimated fair value of $9,858.2 million. As of February 28, 2025, the carrying amount of long-term debt, including the current portion, was $10,691.0 million, compared with an estimated fair value of $9,999.0 million.

The carrying amounts of certain of our financial instruments, including cash and cash equivalents, accounts receivable, and accounts payable, approximate fair value as of February 28, 2026, and February 28, 2025, due to the relatively short maturity of these instruments.

Recurring basis measurements

The following table presents our financial assets and liabilities measured at estimated fair value on a recurring basis:

			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, 2026
Assets:
Foreign currency contracts			$	—					$	334.7					$	—					$	334.7
Commodity derivative contracts			$	—					$	31.2					$	—					$	31.2
Liabilities:
Foreign currency contracts			$	—					$	1.1					$	—					$	1.1
Commodity derivative contracts			$	—					$	7.4					$	—					$	7.4
Net investment hedge contracts			$	—					$	6.7					$	—					$	6.7
February 28, 2025
Assets:
Foreign currency contracts			$	—					$	97.0					$	—					$	97.0
Commodity derivative contracts			$	—					$	9.6					$	—					$	9.6
Pre-issuance hedge contracts			$	—					$	2.2					$	—					$	2.2
Liabilities:
Foreign currency contracts			$	—					$	76.4					$	—					$	76.4
Commodity derivative contracts			$	—					$	12.8					$	—					$	12.8

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Nonrecurring basis measurements

The following table presents our assets and liabilities measured at estimated fair value on a nonrecurring basis for which an impairment assessment was performed for the periods presented:

						Fair Value Measurements Using
			Balance Sheet Classification			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, 2026
Assets held for sale and related net assets			Assets held for sale			$	—					$	—					$	—					$	52.1
Equity method investments			Other assets			—						—						—						1.5
Total						$	—					$	—					$	—					$	53.6
For the Year Ended February 28, 2025
Goodwill			Goodwill			$	—					$	—					$	—					$	2,740.7
Assets held for sale			Assets held for sale			—						879.8						—						478.0
Trademarks			Intangible assets			—						—						125.8						57.0
Equity method investments			Other assets			—						—						—						8.7
Total						$	—					$	879.8					$	125.8					$	3,284.4
For the Year Ended February 29, 2024
Equity method investments			Other assets			$	56.1					$	0.6					$	0.6					$	136.1

Assets held for sale and related net assets

For the three months ended May 31, 2025, largely in connection with the 2025 Wine Divestitures, then-existing assets held for sale and related net assets were adjusted to their current estimated fair value of $897.7 million, less costs to sell, resulting in a $52.1 million net loss. This net loss was included in asset impairment and related expenses within our consolidated results for the year ended February 28, 2026. Our estimated fair value of the then-existing assets held for sale was largely based on the expected proceeds from the 2025 Wine Divestitures as of May 31, 2025.

Goodwill

As of August 31, 2024, in connection with negative trends within our Wine and Spirits business primarily attributable to our U.S. wholesale market, driven by declines in both the overall wine market and in our then-owned mainstream and premium wine brands, management updated its Fiscal 2025 outlook for this reporting unit. The updated forecast indicated it was more likely than not the fair value of the Wine and Spirits reporting unit might be below its carrying value. Accordingly, we performed an interim quantitative assessment for goodwill impairment. This assessment indicated that the carrying value of the Wine and Spirits reporting unit exceeded its estimated fair value, resulting in a $2,250.0 million goodwill impairment. During the three months ended February 28, 2025, we performed our annual impairment analysis and updated our estimate of the fair value of the Wine and Spirits reporting unit to reflect the latest financial projections and an increase in the discount rate. As a result, we recognized an additional $490.7 million goodwill impairment to write-off the remaining goodwill balance for the Wine and Spirits reporting unit as of February 28, 2025. The $2,740.7 million total loss from impairment was included in goodwill and intangible assets impairment within our consolidated results for the year ended February 28, 2025. See Notes 9, 10, and 14 for further discussion.

When performing a quantitative assessment for impairment of goodwill, we measure the amount of impairment by calculating the amount by which the carrying value of the reporting unit exceeds its estimated fair value. The estimated fair value is determined based on the discounted cash flow calculation. The most significant assumptions used in the discounted cash flow calculation were: (i) a 9% discount rate (for the interim assessment) and a 10%

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discount rate (for the annual assessment), (ii) a 1.5% expected long-term growth rate, and (iii) the annual cash flow projections.

Assets held for sale

For the three months ended February 28, 2025, largely in connection with the 2025 Wine Divestitures, assets held for sale with a $1,357.8 million carrying value, were written down to their current estimated fair value of $879.8 million, less costs to sell, resulting in a $478.0 million loss. This loss from impairment was included within asset impairment and related expenses within our consolidated results for the year ended February 28, 2025. These assets consisted primarily of inventory, production facilities, and intangible assets which had satisfied the conditions necessary to be classified as held for sale. Our estimated fair value was largely based on the expected proceeds from the 2025 Wine Divestitures as of February 28, 2025.

Trademarks

For the year ended February 28, 2025, in connection with the assessment of the same events and circumstances that resulted in the wine and spirits goodwill carrying value being written down to zero, we completed a quantitative assessment of our wine trademarks. We re-evaluated the wine units of account in contemplation of the 2025 Wine Divestitures and determined it was appropriate to have two units of account, (i) then-existing held for sale brands and (ii) remaining brands. As a result, the then-existing held for sale brands trademark unit with a $182.8 million carrying value was written down to its estimated fair value of $125.8 million, resulting in a $57.0 million impairment. This loss was included in goodwill and intangible assets impairment within our consolidated results of operations for the year ended February 28, 2025.

When performing the quantitative assessment, the estimated fair value of the trademarks is calculated based on an income approach using the relief from royalty method. The most significant assumptions used in the relief from royalty method to determine the estimated fair value of intangible assets with indefinite lives in connection with this impairment testing were: (i) a 3% royalty rate (then-existing held for sale brands trademark unit) and a 7% royalty rate (remaining brands trademark unit), (ii) an 11% discount rate, (iii) a 1.5% expected long-term growth rate, and (iv) the annual revenue projections.

Equity method investments

As of August 31, 2025, February 28, 2025, August 31, 2024, November 30, 2023, and August 31, 2023, we evaluated certain equity method investments, made through our corporate venture capital function within the Corporate Operations and Other segment, and determined there were other-than-temporary impairments due to business underperformance. These losses from impairment were included in income (loss) from unconsolidated investments within our consolidated results for the respective periods. The estimated fair values for the equity method investments evaluated as of August 31, 2025, February 28, 2025, August 31, 2024, and November 30, 2023, were based largely on the cash flows expected to be generated by the investment using unobservable data points. The estimated fair value for the equity method investments evaluated as of August 31, 2023, was based largely on observable prices for similar assets. In October 2023, we exited one of these equity method investments in exchange for a note receivable.

We evaluated our then-existing Canopy Equity Method Investment as of May 31, 2023, and determined there was an other-than-temporary impairment. Our conclusion was based on several contributing factors, including: (i) the fair value being less than the carrying value and the uncertainty surrounding Canopy’s stock price recovering in the near-term, (ii) Canopy recorded significant costs in its fourth quarter of fiscal 2023 results designed to align its Canadian cannabis operations and resources in response to continued unfavorable market trends, (iii) the substantial doubt about Canopy’s ability to continue as a going concern, as disclosed by Canopy, and (iv) Canopy’s identification of material misstatements in certain of its previously reported financial results related to sales in its BioSteel Sports Nutrition Inc. reporting unit that were accounted for incorrectly, including the recording of a goodwill impairment during its restated second quarter of fiscal 2023. As a result, the Canopy Equity Method Investment with a carrying value of $266.2 million was written down to its estimated fair value of $142.7 million, resulting in an impairment of $123.5 million. This loss from impairment was included in income (loss) from unconsolidated investments within our

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consolidated results for the year ended February 29, 2024. The estimated fair value was determined based on the closing price of the underlying equity security as of May 31, 2023. Additionally, we no longer apply the equity method to our investment in Canopy following the April 2024 conversion of our Canopy common shares to Exchangeable Shares. For additional information, refer to Note 11.

9. GOODWILL

The changes in the carrying amount of goodwill are as follows:

			Beer						Wine and Spirits												Consolidated
(in millions)
Balance at February 29, 2024 (1)			$	5,238.2					$	2,742.1											$	7,980.3
Purchase accounting allocations (2)			—						71.2												71.2
Foreign currency translation adjustments			(111.4)						0.6												(110.8)
Goodwill impairment (3)			—						(2,740.7)												(2,740.7)
SVEDKA Divestiture (4)			—						(73.2)												(73.2)
Balance at February 28, 2025 (1)			5,126.8						—												5,126.8
Foreign currency translation adjustments			107.1						—												107.1
Balance at February 28, 2026			$	5,233.9					$	—											$	5,233.9

(1)The carrying amount of Wine and Spirits goodwill was fully impaired as of February 28, 2025. There were no accumulated impairment losses included in our consolidated goodwill balance as of February 29, 2024.

(2)Purchase accounting allocations associated with the Sea Smoke acquisition.

(3)In connection with continued negative trends within our Wine and Spirits business primarily attributable to our U.S. wholesale market, driven by declines in both the overall wine market and in our then-owned mainstream and premium wine brands, management updated its Fiscal 2025 outlook and financial projections for this reporting unit. Based on the aforementioned factors, we performed quantitative assessments that led to goodwill impairments which resulted in the carrying value being written down to zero.

(4)Amount was based on the relative fair value of the portion of the business sold and the remaining wine and spirits portfolio. The relative fair values were determined using the transaction price and the income approach based on assumptions, including projected revenue growth, terminal growth, and discount rates and other projected financial information.

10. INTANGIBLE ASSETS

The major components of intangible assets are as follows:

			February 28, 2026												February 28, 2025
			Gross Carrying Amount						Net Carrying Amount						Gross Carrying Amount						Net Carrying Amount
(in millions)
Amortizable intangible assets
Customer relationships			$	85.4					$	13.6					$	85.3					$	14.9
Other			19.6						0.3						20.7						0.3
Total			$	105.0					13.9						$	106.0					15.2
Nonamortizable intangible assets
Trademarks									2,519.1												2,517.1
Total intangible assets									$	2,533.0											$	2,532.3

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We did not incur costs to renew or extend the term of acquired intangible assets for the years ended February 28, 2026, February 28, 2025, and February 29, 2024. Net carrying amount represents the gross carrying value net of accumulated amortization. Amortization expense for intangible assets was $1.3 million for each of the years ended February 28, 2026, February 28, 2025, and February 29, 2024.

Estimated amortization expense for each of the five succeeding fiscal years and thereafter is as follows:

(in millions)
Fiscal 2027			$	1.3
Fiscal 2028			$	1.3
Fiscal 2029			$	1.3
Fiscal 2030			$	1.3
Fiscal 2031			$	1.3
Thereafter			$	7.4

11. OTHER ASSETS

The major components of other assets are as follows:

			February 28, 2026						February 28, 2025
(in millions)
Operating lease right-of-use asset			$	582.4					$	545.7
Income taxes receivable			188.6						135.5
Derivative assets			186.4						41.6
Equity method investments			128.8						124.5
Other investments in debt and equity securities			69.1						60.3
Exchangeable Shares			21.2						21.2
Other			159.6						132.9
			$	1,336.1					$	1,061.7

Equity method investments

We acquired several investments which are being accounted for under the equity method, largely in connection with prior Wine and Spirits segment acquisitions. The primary investment consists of Opus One Winery, a 50% owned joint venture arrangement.

Other investments in debt and equity securities

We have multiple investments through our corporate venture capital function in debt and equity securities. As of February 28, 2025, we evaluated certain investments, primarily driven by business underperformance and solvency concerns, and concluded they should be written down to zero resulting in a loss of $47.9 million. This loss on securities measured at fair value was included in income (loss) from unconsolidated investments within our consolidated results for the year ended February 28, 2025.

Exchangeable Shares

We own 26.3 million Exchangeable Shares. As of November 30, 2024, we evaluated our Exchangeable Shares for impairment primarily due to the business and industry factors that led to the decline in Canopy’s common share price since the April 2024 conversion of our then-existing Canopy common shares and exchange of a portion of the principal amount of a then-existing promissory note issued to us by Canopy for Exchangeable Shares. We concluded that an impairment did exist and wrote down our Exchangeable Shares to their estimated fair value. Due to the continued decline in Canopy’s common share price, as of February 28, 2025, we evaluated the Exchangeable Shares for an additional impairment. We concluded an impairment did exist, and accordingly, the Exchangeable Shares with a

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$97.3 million carrying value at the April 2024 date of conversion and exchange were written down to $21.2 million, their estimated fair value as of February 28, 2025, resulting in a $76.1 million total impairment. The estimated fair values were determined using the same valuation model as of the date of conversion and exchange as noted below.

Following the April 2024 conversion and exchange, we recognized a net gain of $83.3 million based on the fair value of our Exchangeable Shares. The fair value of our Exchangeable Shares on the date of the conversion and exchange was estimated using a valuation model based primarily on the following inputs: (i) Canopy’s common share price, (ii) the expected volatility of Canopy’s common shares, and (iii) the probability and timing of U.S. federal legalization of recreational cannabis. As Exchangeable Shares are an equity security without a readily determinable fair value, we elected to account for our Exchangeable Shares under the measurement alternative method.

We recognized a total net gain of $7.2 million in income (loss) from unconsolidated investments in connection with our Exchangeable Shares activity for the year ended February 28, 2025. Future impairments, if any, will also be reported in income (loss) from unconsolidated investments within our consolidated results.

12. OTHER ACCRUED EXPENSES AND LIABILITIES

The major components of other accrued expenses and liabilities are as follows:

			February 28, 2026						February 28, 2025
(in millions)
Accrued income taxes payable			$	164.3					$	20.9
Salaries, commissions, and payroll benefits and withholdings			146.7						155.3
Accrued interest			102.7						98.7
Operating lease liability			101.9						76.7
Promotions and advertising			101.8						133.7
Accrued restructuring (1)			52.7						49.7
Accrued excise taxes			39.5						49.8
Accrued insurance, property, and other taxes			31.3						34.4
Contract liabilities			17.8						91.5
Derivative liabilities			6.3						46.6
Liabilities held for sale			—						33.7
Other			89.0						95.7
			$	854.0					$	886.7

(1)Represents amounts accrued in connection with the 2025 Restructuring Initiative.

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13. BORROWINGS

Borrowings consist of the following:

			February 28, 2026																		February 28, 2025
			Current						Long-term						Total						Total
(in millions)
Short-term borrowings
Commercial paper			$	272.0																	$	806.7
			$	272.0																	$	806.7
Long-term debt
Senior notes			$	599.5					$	9,685.8					$	10,285.3					$	10,682.3
Other			4.1						7.1						11.2						8.7
			$	603.6					$	9,692.9					$	10,296.5					$	10,691.0

BANK FACILITIES

2025 Credit Agreement

In April 2025, the Company, CB International, the Administrative Agent, and certain other lenders entered into the 2025 Restatement Agreement that amended and restated our then-existing credit facility (as amended and restated by the 2025 Restatement Agreement, the 2025 Credit Agreement). The principal changes effected by the 2025 Restatement Agreement were (i) refinancing the existing $2.25 billion revolving credit facility, (ii) extending its maturity to April 28, 2030, and (iii) refining certain negative covenants.

2025 Term Credit Agreement

In May 2025, the Company, the Administrative Agent, and certain other lenders entered into the 2025 Term Credit Agreement. The 2025 Term Credit Agreement provided for a six-month delayed draw $500.0 million term loan facility. Effective October 21, 2025, we terminated all commitments under the 2025 Term Credit Agreement.

General

We and our subsidiaries are subject to covenants that are contained in the 2025 Credit Agreement, including those restricting the incurrence of additional subsidiary indebtedness, additional liens, mergers and consolidations, transactions with affiliates, and sale and leaseback transactions, in each case subject to numerous conditions, exceptions, and thresholds. The financial covenants are limited to a minimum interest coverage ratio and a maximum net leverage ratio.

Our senior credit facility permits us to elect, subject to the willingness of existing or new lenders to fund such increase and other customary conditions, to increase the revolving credit commitments. The increased commitments may be an unlimited amount so long as our net leverage ratio, as defined and computed pursuant to our senior credit facility, is no greater than 4.00 to 1.00 subject to certain limitations for the period defined pursuant to our senior credit facility.

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Information with respect to borrowings under our bank facilities is as follows:

			Outstanding borrowings						Interest rate						SOFR margin						Outstanding letters of credit						Remaining borrowing capacity
(in millions)
February 28, 2026
Revolving credit facility (1) (2) (3)			$	—					—%						—%						$	11.3					$	1,966.6
February 28, 2025
Revolving credit facility (2) (3) (4)			$	—					—%						—%						$	11.3					$	1,430.7

(1)Net of outstanding revolving credit facility borrowings and outstanding letters of credit under the 2025 Credit Agreement, and outstanding borrowings under our commercial paper program of $272.1 million (excluding unamortized discount) (see “Commercial paper program” below).

(2)Contractual interest rate varies based on our debt rating (as defined in the agreement) and is a function of SOFR plus a margin and a credit spread adjustment, or the base rate plus a margin, or, in certain circumstances where SOFR cannot be adequately ascertained or available, an alternative benchmark rate plus a margin.

(3)We and/or CB International are the borrower under the $2,250.0 million revolving credit facility. Includes a sub-facility for letters of credit of up to $200.0 million.

(4)Net of outstanding revolving credit facility borrowings and outstanding letters of credit under our then-existing senior credit facility, and outstanding borrowings under our commercial paper program of $808.0 million (excluding unamortized discount) (see “Commercial paper program” below).

Commercial paper program

We have a commercial paper program which provides for the issuance of up to an aggregate principal amount of $2.25 billion of commercial paper. Our commercial paper program is backed by unused commitments under our revolving credit facility under our 2025 Credit Agreement. Accordingly, outstanding borrowings under our commercial paper program reduce the amount available under our revolving credit facility. Information with respect to our outstanding commercial paper borrowings is as follows:

			February 28, 2026						February 28, 2025
(in millions)
Outstanding borrowings (1)			$	272.0					$	806.7
Weighted average annual interest rate			3.9%						4.7%
Weighted average remaining term			6 days						13 days

(1)Outstanding commercial paper borrowings are net of unamortized discount.

Pre-issuance hedge contracts

In February 2026, we entered into Pre-issuance hedge contracts, which were designated as cash flow hedges. As a result, we have hedged the treasury rate on $50.0 million of future debt issuances. Upon the termination and settlement of these contracts, the unrealized gain (loss) will be recognized in AOCI within our consolidated balance sheets and amortized to interest expense, net within our consolidated results of operations.

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PART II			ITEM 8. FINANCIAL STATEMENTS AND SUPPLEMENTARY DATA			Table of Contents

Senior notes

Information on our senior notes, all of which are senior unsecured obligations that rank equally in right of payment to all of our existing and future senior unsecured indebtedness, is as follows:

									Date of																		Outstanding Balance (1)
			Principal						Issuance						Maturity						Interest Payments						February 28, 2026						February 28, 2025
(in millions)
4.75% Senior Notes (2)			$	400.0					Dec 2015						Dec 2025						Jun/Dec						$	—					$	399.5
3.70% Senior Notes (3)			$	600.0					Dec 2016						Dec 2026						Jun/Dec						599.5						598.9
3.50% Senior Notes (3)			$	500.0					May 2017						May 2027						May/Nov						499.3						498.8
4.50% Senior Notes (3)			$	500.0					May 2017						May 2047						May/Nov						494.4						494.2
3.60% Senior Notes (3)			$	700.0					Feb 2018						Feb 2028						Feb/Aug						698.6						697.9
4.10% Senior Notes (3)			$	600.0					Feb 2018						Feb 2048						Feb/Aug						593.7						593.4
4.40% Senior Notes			$	500.0					Oct 2018						Nov 2025						May/Nov						—						499.5
4.65% Senior Notes (3)			$	500.0					Oct 2018						Nov 2028						May/Nov						498.5						497.9
5.25% Senior Notes (3)			$	500.0					Oct 2018						Nov 2048						May/Nov						494.3						494.1
3.15% Senior Notes (3)			$	800.0					Jul 2019						Aug 2029						Feb/Aug						797.6						796.8
2.875% Senior Notes (3)			$	600.0					Apr 2020						May 2030						May/Nov						597.4						596.8
3.75% Senior Notes (3)			$	600.0					Apr 2020						May 2050						May/Nov						591.3						591.0
2.25% Senior Notes (3)			$	1,000.0					Jul 2021						Aug 2031						Feb/Aug						993.1						991.8
4.35% Senior Notes (3)			$	600.0					May 2022						May 2027						May/Nov						599.2						598.4
4.75% Senior Notes (3)			$	700.0					May 2022						May 2032						May/Nov						695.7						695.0
5.00% Senior Notes (4)			$	500.0					Feb 2023						Feb 2026						Feb/Aug						—						499.0
4.90% Senior Notes (3)			$	750.0					May 2023						May 2033						May/Nov						742.7						741.6
4.80% Senior Notes (3)			$	400.0					Jan 2024						Jan 2029						Jan/Jul						398.3						397.7
4.80% Senior Notes (3)			$	500.0					May 2025						May 2030						May/Nov						496.5						—
4.95% Senior Notes (3)			$	500.0					Oct 2025						Nov 2035						May/Nov						495.2						—
																											$	10,285.3					$	10,682.3

(1)Amounts are net of unamortized debt issuance costs and unamortized discounts, where applicable.

(2)Redeemed prior to maturity in July 2025, using proceeds from the 2025 Wine Divestitures and cash on hand, at a redemption price equal to 100% of the outstanding principal amount plus accrued and unpaid interest.

(3)Redeemable, in whole or in part, at our option at any time prior to the stated redemption date at a redemption price equal to 100% of the outstanding principal amount, plus accrued and unpaid interest and a make-whole payment based on the present value of the future payments at the applicable treasury rate plus the stated basis points. On or after the stated redemption date, the notes are redeemable, in whole or in part, at our option at any time at a redemption price equal to 100% of the outstanding principal amount, plus accrued and unpaid interest.

			Redemption
			Stated Redemption Date						Stated Basis Points
3.70% Senior Notes due December 2026			Sept 2026						25
3.50% Senior Notes due May 2027			Feb 2027						20
4.50% Senior Notes due May 2047			Nov 2046						25
3.60% Senior Notes due February 2028			Nov 2027						15
4.10% Senior Notes due February 2048			Aug 2047						20
4.65% Senior Notes due November 2028			Aug 2028						25

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			Redemption
			Stated Redemption Date						Stated Basis Points
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
2.25% Senior Notes due August 2031			May 2031						15
4.35% Senior Notes due May 2027			Apr 2027						25
4.75% Senior Notes due May 2032			Feb 2032						30
4.90% Senior Notes due May 2033			Feb 2033						25
4.80% Senior Notes due January 2029			Dec 2028						15
4.80% Senior Notes due May 2030			Apr 2030						20
4.95% Senior Notes due November 2035			Aug 2035						15

(4)Redeemed prior to maturity in June 2025, using proceeds from the 2025 Wine Divestitures, at a redemption price equal to 100% of the outstanding principal amount plus accrued and unpaid interest.

Indentures

Our indentures relating to our outstanding senior notes contain certain covenants, including, but not limited to: (i) a limitation on liens on certain assets, (ii) a limitation on certain sale and leaseback transactions, and (iii) restrictions on mergers, consolidations, and the transfer of all or substantially all of our assets to another person.

Subsidiary credit facilities

General

We have additional credit arrangements totaling $56.0 million and $46.7 million as of February 28, 2026, and February 28, 2025, respectively. As of February 28, 2026, and February 28, 2025, amounts outstanding under these arrangements were $11.2 million and $8.7 million, respectively, the majority of which is classified as long-term as of the respective date. These arrangements primarily support the financing needs of our domestic and foreign subsidiary operations. Interest rates and other terms of these borrowings vary from country to country, depending on local market conditions.

Debt payments

As of February 28, 2026, the required principal repayments under long-term debt obligations (excluding unamortized debt issuance costs and unamortized discounts of $44.6 million and $20.1 million, respectively) for each of the five succeeding fiscal years and thereafter are as follows:

(in millions)
Fiscal 2027			$	604.1
Fiscal 2028			1,802.6
Fiscal 2029			901.2
Fiscal 2030			801.3
Fiscal 2031			1,101.4
Thereafter			5,150.6
			$	10,361.2

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14. INCOME TAXES

Income (loss) before income taxes was generated as follows:

			For the Years Ended
			February 28, 2026						February 28, 2025						February 29, 2024
(in millions)
Domestic			$	(83.9)					$	(2,633.0)					$	(140.2)
Foreign			2,461.7						2,550.2						2,362.0
			$	2,377.8					$	(82.8)					$	2,221.8

The income tax provision (benefit) consisted of the following:

			For the Years Ended
			February 28, 2026						February 28, 2025						February 29, 2024
(in millions)
Current
Federal			$	161.7					$	16.7					$	152.6
State			15.9						25.9						16.4
Foreign			(67.1)						116.0						139.7
Total current			110.5						158.6						308.7
Deferred
Federal			94.9						(436.4)						27.7
State			19.2						(73.1)						(19.0)
Foreign			396.4						299.2						139.2
Total deferred			510.5						(210.3)						147.9
Income tax provision (benefit)			$	621.0					$	(51.7)					$	456.6

A reconciliation of the total tax provision (benefit) to the amount computed by applying the statutory U.S. federal income tax rate to income before provision for (benefit from) income taxes for the year ended February 28, 2026, is as follows:

			Amount						% of Pretax Income (Loss)
(in millions, except % of pretax income (loss) data)
Income tax provision (benefit) at statutory rate			$	499.3					21.0%
State and local income taxes, net of federal income tax provision (benefit) (1)			24.9						1.0%
Earnings taxed at other than U.S. statutory rate:
Switzerland
Statutory income tax difference between Switzerland and U.S.			(62.5)						(2.6%)
Canton income tax			81.0						3.4%
Changes in valuation allowances			184.7						7.8%
Other			(14.0)						(0.6%)
Malta
Statutory income tax difference between Malta and U.S.			121.6						5.1%
Changes in valuation allowances			353.6						14.9%
Interest limitation			(353.6)						(14.9%)
Nontaxable or nondeductible items, net			(297.2)						(12.5%)

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			Amount						% of Pretax Income (Loss)
(in millions, except % of pretax income (loss) data)
Other foreign jurisdictions
Other			(21.3)						(0.9%)
Effect of cross-border tax laws:
Global intangible low-taxed income			187.8						7.9%
Other			53.9						2.3%
Tax credits			(3.4)						(0.1%)
Changes in valuation allowances			51.0						2.1%
Nontaxable or nondeductible items, net			60.6						2.5%
Changes in unrecognized tax benefits			(245.4)						(10.3%)
Income tax provision (benefit) at effective rate			$	621.0					26.1%

(1)State taxes in California, New York, and Illinois are attributable to greater than 50% of the net income tax provision (benefit) for the year ended February 28, 2026.

A reconciliation of the total tax provision (benefit) to the amount computed by applying the statutory U.S. federal income tax rate to income before provision for (benefit from) income taxes is as follows:

			February 28, 2025												February 29, 2024
			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			$	(17.4)					21.0		%				$	466.6					21.0		%
State and local income taxes, net of federal income tax provision (benefit) (1)			(31.2)						37.7		%				35.9						1.6		%
Net income tax benefit from a tax entity classification change			—						—		%				(31.2)						(1.4		%)
Earnings taxed at other than U.S. statutory rate (2)			(241.0)						291.1		%				(75.9)						(3.4		%)
Net income tax provision (benefit) from legislative changes (3)			—						—		%				(9.6)						(0.4		%)
Wine and Spirits-related impairments including the non-deductible portion of the wine and spirits goodwill impairment			253.3						(306.0		%)				—						—		%
Excess tax benefits from stock-based compensation awards (4)			(5.3)						6.4		%				(8.0)						(0.4		%)
Net income tax provision (benefit) recognized for adjustment to valuation allowance (5)			24.1						(29.1		%)				86.2						3.9		%
Net income tax provision (benefit) in connection with sale of the remaining assets at the canceled Mexicali Brewery			(22.2)						26.8		%				—						—		%
Net income tax provision (benefit) for various U.S. income tax credits			(14.1)						17.0		%				—						—		%
Net income tax provision (benefit) in connection with the SVEDKA Divestiture			6.0						(7.2		%)				—						—		%
Miscellaneous items, net			(3.9)						4.7		%				(7.4)						(0.3		%)
Income tax provision (benefit) at effective rate			$	(51.7)					62.4		%				$	456.6					20.6		%

(1)Includes differences resulting from adjustments to the current and deferred state effective tax rates.

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(2)Consists of the following (i) difference between the U.S. statutory rate and local jurisdiction tax rates, (ii) the provision for incremental U.S. taxes on earnings of certain foreign subsidiaries offset by foreign tax credits, (iii) the non-U.S. portion of tax provision (benefit) recorded on the unrealized net gain (loss) from the changes in fair value of our investment in Canopy, and (iv) the non-U.S. portion of tax benefits recorded on the Canopy equity in earnings (losses) and related activities.

(3)The year ended February 29, 2024, represents a net income tax benefit resulting from the remeasurement of our deferred tax assets in connection with a legislative update in Switzerland.

(4)Represents the recognition of the income tax effect of stock-based compensation awards in the income statement when the awards vest or are settled.

(5)The year ended February 28, 2025, consists primarily of valuation allowances related to net operating losses and the year ended February 29, 2024, consists primarily of valuation allowances related to our investment in Canopy.

The liability for income taxes associated with uncertain tax positions, excluding interest and penalties, and a reconciliation of the beginning and ending unrecognized tax benefit liabilities is as follows:

			For the Years Ended
			February 28, 2026						February 28, 2025						February 29, 2024
(in millions)
Balance as of March 1			$	318.9					$	416.1					$	344.3
Increases as a result of tax positions taken during a prior period			46.9						51.8						48.1
Decreases as a result of tax positions taken during a prior period			(102.2)						(124.7)						(2.5)
Increases as a result of tax positions taken during the current period			50.6						28.0						31.5
Decreases related to settlements with tax authorities			(46.3)						(43.9)						(2.8)
Decreases related to lapse of applicable statute of limitations			(13.8)						(8.4)						(2.5)
Balance as of last day of February			$	254.1					$	318.9					$	416.1

As of February 28, 2026, and February 28, 2025, we had $310.6 million and $438.4 million, respectively, of unrecognized tax benefit liabilities, including interest and penalties, recognized on our balance sheets. These liabilities are primarily recorded as non-current as of the balance sheet date.

As of February 28, 2026, we had $254.1 million of unrecognized tax benefit liabilities, if recognized these liabilities net of indirect impacts, would decrease the effective tax rate in the year of resolution by $200.4 million. As of February 28, 2025, we had $318.9 million of unrecognized tax benefit liabilities, if recognized these liabilities net of indirect impacts, would decrease the effective tax rate in the year of resolution by $183.4 million.

We file U.S. federal income tax returns and various state, local, and foreign income tax returns. Major tax jurisdictions where we are subject to examination by tax authorities include Italy, Mexico, New Zealand, Switzerland, and the U.S. Various U.S. federal, state, and foreign income tax examinations are currently in progress. With few exceptions, we are no longer subject to U.S. federal, state, local, or foreign income tax examinations for fiscal years prior to February 28, 2023.

We provide for additional tax expense based on probable outcomes of ongoing tax examinations and assessments in various jurisdictions. While it is often difficult to predict the outcome or the timing of resolution of any tax matter, we believe the reserves reflect the probable outcome of known tax contingencies. Unfavorable settlement of any particular issue would require the use of cash.

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PART II			ITEM 8. FINANCIAL STATEMENTS AND SUPPLEMENTARY DATA			Table of Contents

Income taxes paid

A summary income taxes paid (net of refunds) for the year ended February 28, 2026 is as follows:

(in millions)
U.S. federal			$	78.1
U.S. state and local (1)			16.4
Foreign
Mexico			66.7
Other			12.4
Total foreign			79.1
Total			$	173.6

(1)No single U.S. state or local jurisdiction accounts for more than 5% of total income taxes paid.

Additionally, we paid $197.1 million and $333.5 million in income taxes (net of refunds), for the years ended February 28, 2025, and February 29, 2024, respectively.

Deferred tax assets and liabilities

Deferred tax assets and liabilities reflect the future income tax effects of temporary differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases and are measured using enacted tax rates that apply to taxable income. Additionally, we have provided deferred income taxes, consisting primarily of foreign withholding and state taxes, on all applicable unremitted earnings of our foreign subsidiaries, except for those earnings that we consider to be indefinitely reinvested. Significant components of deferred tax assets (liabilities) consist of the following:

			February 28, 2026						February 28, 2025
(in millions)
Deferred tax assets
Intangible assets			$	1,540.2					$	1,716.1
Loss carryforwards			676.9						619.3
Interest limitation			432.4						121.7
Lease liabilities			104.0						102.3
Investments in unconsolidated investees			635.0						652.2
Other accruals			286.3						212.2
Gross deferred tax assets			3,674.8						3,423.8
Valuation allowances			(1,860.8)						(1,170.0)
Deferred tax assets, net			1,814.0						2,253.8
Deferred tax liabilities
Intangible assets			(337.5)						(264.9)
Property, plant, and equipment			(122.7)						(122.7)
Right-of-use assets			(92.6)						(88.3)
Derivative instruments			(43.3)						(6.9)
Other accruals			(51.5)						(58.3)
Total deferred tax liabilities			(647.6)						(541.1)
Deferred tax assets (liabilities), net			$	1,166.4					$	1,712.7

In assessing the realizability of deferred tax assets, we consider whether it is more likely than not that some or all of the deferred tax assets will not be realized. In making this assessment, we consider the projected reversal of deferred tax liabilities and projected future taxable income as well as tax planning strategies. Based upon this assessment, we

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PART II			ITEM 8. FINANCIAL STATEMENTS AND SUPPLEMENTARY DATA			Table of Contents

believe it is more likely than not that we will realize the benefits of these deductible differences, net of any valuation allowances.

As of February 28, 2026, operating loss carryforwards, which are primarily state and foreign, totaling $3.8 billion are being carried forward in a number of jurisdictions where we are permitted to use tax operating losses from prior periods to reduce future taxable income. Of these operating loss carryforwards, $2.2 billion will expire by fiscal 2033, $800.0 million will expire between fiscal 2034 and fiscal 2050, and $750.0 million may be carried forward indefinitely in certain jurisdictions. Additionally, as of February 28, 2026, federal capital losses totaling $1.4 billion are being carried forward in multiple jurisdictions; and will expire, if unused, between Fiscal 2029 and fiscal 2035. Interest limitation carryforwards totaling $1.8 billion may be carried forward indefinitely in certain jurisdictions.

We have recognized valuation allowances for operating loss carryforwards and other deferred tax assets when we believe it is more likely than not that these items will not be fully realized. The increase in our valuation allowances as of February 28, 2026, is primarily related to tax attributes.

Tax Legislation

OB3 Act

On July 4, 2025, the OB3 Act was signed into U.S. law. The OB3 Act extends and modifies several provisions originally introduced under the Tax Cuts and Jobs Act of 2017, while also implementing additional changes to U.S. federal tax law. Key provisions of the OB3 Act include (i) the permanent extension of 100% bonus depreciation for qualifying assets, (ii) the elimination of the requirement to capitalize and amortize U.S.-based research and experimental expenditures, allowing for immediate expensing, (iii) changes to the limitation on the deductibility of interest expense, and (iv) modifications to the taxation of foreign earnings and other international income tax provisions. The OB3 Act contains multiple effective dates, with certain provisions taking effect beginning in calendar year 2025 and others phased in through calendar year 2027.

We have performed an evaluation of the impact of the OB3 Act on our consolidated financial statements, including the effects on our annual effective tax rate, deferred tax assets and liabilities, and cash flows. Based on this analysis and activities performed in response to the legislation, there will continue to be a negative impact on our effective tax rate for Fiscal 2027, primarily driven by modifications to the taxation of foreign earnings and other international income tax provisions.

Additionally, for the year ended February 28, 2026, we recognized a valuation allowance against our deferred tax asset related to prior year interest expense limitations. We will continue to assess the implications of the OB3 Act, and our income tax provision may continue to be impacted as additional clarifications or interpretive guidance related to the OB3 Act is released.

Pillar Two

The OECD introduced a framework under Pillar Two which includes a 15% global minimum tax rate. Many jurisdictions in which we do business have started to enact laws implementing Pillar Two. We are monitoring these developments and currently do not believe these rules will have a material impact on our financial condition and/or consolidated results.

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15. DEFERRED INCOME TAXES AND OTHER LIABILITIES

The major components of deferred income taxes and other liabilities are as follows:

			February 28, 2026						February 28, 2025
(in millions)
Operating lease liability			$	532.2					$	539.1
Unrecognized tax benefit liabilities			309.6						424.3
Deferred income taxes			203.9						92.6
Derivative liabilities			8.9						42.6
Other			76.3						94.7
			$	1,130.9					$	1,193.3

16. LEASES

General

We primarily lease certain vineyards, office and production facilities, warehouses, production equipment, and vehicles. We have concluded that certain grape purchasing arrangements associated with the purchase of grape production yielded from a specified block of a vineyard and certain third-party logistics arrangements contain a lease.

Balance sheet location

A summary of lease right-of-use assets and liabilities are as follows:

			Balance Sheet Classification			February 28, 2026						February 28, 2025
(in millions)
Assets
Operating lease			Other assets			$	582.4					$	545.7
Finance lease			Property, plant, and equipment, net			10.5						18.2
Total right-of-use assets						$	592.9					$	563.9
Liabilities
Current:
Operating lease			Other accrued expenses and liabilities			$	101.9					$	76.7
Finance lease			Current maturities of long-term debt			4.1						4.1
Non-current:
Operating lease			Deferred income taxes and other liabilities			532.2						539.1
Finance lease			Long-term debt, less current maturities			7.1						4.6
Total lease liabilities						$	645.3					$	624.5

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Lease cost

The components of total lease cost are as follows:

			For the Years Ended
			February 28, 2026						February 28, 2025						February 29, 2024
(in millions)
Operating lease cost			$	126.8					$	112.6					$	98.2
Finance lease cost:
Amortization of right-of-use assets			5.4						7.2						9.4
Interest on lease liabilities			0.7						1.0						1.4
Short-term lease cost			9.2						11.5						10.5
Variable lease cost			47.0						135.2						182.1
Total lease cost			$	189.1					$	267.5					$	301.6

Lease maturities

As of February 28, 2026, minimum payments due for lease liabilities for each of the five succeeding fiscal years and thereafter are as follows:

			Operating Leases						Finance Leases
(in millions)
Fiscal 2027			$	128.6					$	5.0
Fiscal 2028			109.4						3.0
Fiscal 2029			85.5						1.6
Fiscal 2030			77.6						1.5
Fiscal 2031			67.6						1.5
Thereafter			317.4						0.7
Total lease payments			786.1						13.3
Less: Interest			(152.0)						(2.1)
Total lease liabilities			$	634.1					$	11.2

Related party transaction

We have a long-term lease for office space with an affiliate of a director.

Supplemental information

			For the Years Ended
			February 28, 2026						February 28, 2025						February 29, 2024
(in millions)
Cash paid for amounts included in the measurement of lease liabilities
Operating cash flows from operating leases			$	132.3					$	114.8					$	99.5
Operating cash flows from finance leases			$	0.7					$	1.0					$	1.4
Financing cash flows from finance leases			$	4.4					$	7.0					$	9.7
Right-of-use assets obtained in exchange for new lease liabilities
Operating leases			$	188.3					$	63.0					$	268.5
Finance leases			$	5.7					$	—					$	—

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PART II			ITEM 8. FINANCIAL STATEMENTS AND SUPPLEMENTARY DATA			Table of Contents

			For the Years Ended
			February 28, 2026						February 28, 2025						February 29, 2024
(in millions)
Weighted-average remaining lease term (1)
Operating leases			10.2 years						11.6 years						10.7 years
Finance leases			4.0 years						2.3 years						2.8 years
Weighted-average discount rate
Operating leases			4.5%						4.2%						4.3%
Finance leases			9.5%						8.8%						7.5%

(1)Our leases have varying terms with remaining lease terms of up to approximately 29 years. Certain of our lease arrangements provide us with the option to extend or to terminate the lease early.

17. COMMITMENTS AND CONTINGENCIES

Purchase commitments and contingencies

We have entered into various long-term contracts in the normal course of business. As of February 28, 2026, the estimated aggregate minimum purchase commitments under these contracts through the date of the last contractual commitment are as follows:

			Type			Commitment Date			Amount
(in millions)
Raw materials and supplies			Packaging, corn, malt, and grapes			December 2037			$	4,340.3
Contract services			Transportation, marketing, IT, warehousing and bottling, energy contract services, and consumer and market insights			January 2032			574.6
Capital expenditures (1)			Property, plant, and equipment and contractor and manufacturing services			February 2029			70.2
In-process and finished goods inventories			Bulk wine and spirits and related contracts			December 2028			21.9
									$	5,007.0

(1)Consists of purchase commitments entered into primarily in connection with the Brewery Projects.

Indemnification liabilities

In connection with prior divestitures, we have indemnified respective parties against certain liabilities that may arise subsequent to the divestiture. As of February 28, 2026, and February 28, 2025, these liabilities consist primarily of indemnifications related to certain income tax matters and lease contracts. As of February 28, 2026, and February 28, 2025, the carrying amount of our indemnification liabilities was $12.2 million and $18.4 million, respectively, and are included in other accrued expenses and liabilities and deferred income taxes and other liabilities. We do not expect to be required to make material payments under the indemnifications and we believe that the likelihood is remote that the indemnifications could have a material adverse effect on our business, liquidity, financial condition, and/or results of operations.

Supply chain finance program

We have an agreement with a financial institution for payment services and facilitate a voluntary supply chain finance program through this participating financial institution. The program is available to certain of our suppliers allowing them the option to manage their cash flow. We are not a party to the agreements between the participating financial institution and the suppliers in connection with the program. Our rights and obligations to our suppliers, including amounts due and scheduled payment terms, are not impacted. We account for payments made under the supply

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chain finance program the same as our other accounts payable, as a reduction to our cash flow from operating activities.

The changes in outstanding obligations under our supply chain finance program are as follows:

(in millions)
Balance, February 29, 2024						$	11.5
Additions						190.5
Settlements (1)						(162.6)
Balance, February 28, 2025 (2)						39.4
Additions						266.0
Settlements (1)						(254.7)
Balance, February 28, 2026 (2)						$	50.7

(1)Reflects amounts settled through the supply chain finance program and paid to the financial institution.

(2)Reflects amount payable to the participating financial institution for suppliers who voluntarily participated in the supply chain finance program and was included in accounts payable within our consolidated balance sheets.

Legal matters

In the ordinary course of our business, we are subject to lawsuits, arbitration, claims, and other legal proceedings in connection with our business. Some of the legal actions include claims for substantial or unspecified compensatory and/or punitive damages and/or injunctive relief. A substantial adverse judgment or other unfavorable resolution of these matters could have a material adverse effect on our financial condition, results of operations, or cash flows. Management believes that we have adequate legal defenses with respect to the legal proceedings to which it is a defendant or respondent and that the outcome of these pending proceedings is not likely to have a material adverse effect on our financial condition, results of operations, and/or cash flows. However, we are unable to predict the outcome of these matters.

Regulatory matters

We are in discussions with various governmental agencies concerning matters raised during regulatory examinations or otherwise subject to such agencies’ inquiry. These matters could result in censures, fines, or other sanctions. Management believes the outcome of any pending regulatory matters will not have a material adverse effect on our financial condition, results of operations, and/or cash flows. However, we are unable to predict the outcome of these matters.

Insurance recoveries

During the year ended February 29, 2024, we recorded $56.3 million of business interruption and other recoveries from our insurance carriers. These recoveries related to an outage at our Nava Brewery due to severe winter weather events in early 2021. These proceeds are included in our consolidated results of operations for the year ended February 29, 2024.

18. STOCKHOLDERS’ EQUITY

Common stock

We have one class of common stock with a material number of shares outstanding: Class A Stock. Holders of Class A Stock are entitled to one vote per share. In addition, we have a class of common stock with an immaterial number of shares outstanding: Class 1 Stock. Shares of Class 1 Stock generally have no voting rights. Class 1 Stock shares are convertible into shares of Class A Stock on a one-to-one basis at any time at the option of the holder, provided that the holder immediately sells the Class A Stock acquired upon conversion. Because shares of Class 1 Stock are

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convertible into shares of Class A Stock, for each share of Class 1 Stock issued, we must reserve one share of Class A Stock for issuance upon the conversion of the share of Class 1 Stock. Holders of Class 1 Stock do not have any preference as to dividends, but may participate in any dividend if and when declared by the Board of Directors. If we pay a cash dividend on Class 1 Stock, each share of Class A Stock will receive an amount at least 10% greater than the amount of cash dividend per share paid on Class 1 Stock. In addition, the Board of Directors may declare and pay a dividend on Class A Stock without paying a dividend on Class 1 Stock.

The number of shares of common stock issued and treasury stock, and associated share activity, are as follows:

			Class A Stock						Class 1 Stock						Class A Stock in Treasury
Balance at February 28, 2023			212,697,428						22,705						29,498,426
Share repurchases			—						—						1,043,366
Conversion of shares			870						(870)						—
Exercise of stock options			—						1,826						(582,476)
Employee stock purchases			—												(59,408)
Vesting of restricted stock units (1)			—												(76,914)
Vesting of performance share units (1)			—												(13,113)
Balance at February 29, 2024			212,698,298						23,661						29,809,881
Share repurchases			—						—						5,252,003
Exercise of stock options									3,376						(389,640)
Employee stock purchases			—						—						(67,405)
Vesting of restricted stock units (1)			—						—						(90,941)
Vesting of performance share units (1)			—						—						(8,757)
Balance at February 28, 2025			212,698,298						27,037						34,505,141
Share repurchases			—						—						5,652,107
Conversion of shares			1,244						(1,244)						—
Exercise of stock options			—						130						(59,714)
Employee stock purchases			—						—						(66,110)
Vesting of restricted stock units (1)			—						—						(104,328)
Balance at February 28, 2026			212,699,542						25,923						39,927,096

(1)Net of the following shares withheld to satisfy tax withholding requirements:

			For the Years Ended
			February 28, 2026						February 28, 2025						February 29, 2024
Restricted Stock Units			50,866						48,648						40,023
Performance Share Units			—						5,728						8,735

Stock repurchases

In each of January 2021 and November 2023, our Board of Directors authorized the repurchase of up to $2.0 billion of our publicly traded common stock. The 2021 Authorization was fully utilized as of November 30, 2024. In April 2025, our Board of Directors authorized the repurchase of up to $4.0 billion of our publicly traded common stock under the 2025 Authorization, which expires in February 2028. The 2025 Authorization replaced the 2023 Authorization in its entirety. Shares repurchased under these authorizations become treasury shares.

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A summary of share repurchase activity is as follows:

									For the Years Ended
						February 28, 2026												February 28, 2025												February 29, 2024
															Dollar Value						Number of Shares						Dollar Value						Number of Shares						Dollar Value						Number of Shares
(in millions, except share data)
2021 Authorization															$	—					—						$	613.7					2,462,271						$	249.7					1,043,366
2023 Authorization															—						—						510.1						2,789,732						—						—
2025 Authorization															924.1						5,652,107						—						—						—						—
															$	924.1					5,652,107						$	1,123.8					5,252,003						$	249.7					1,043,366

Subsequent to February 28, 2026, we repurchased 641,481 shares of Class A Stock pursuant to the 2025 Authorization at an aggregate cost of $98.7 million (excluding Federal excise tax owed pursuant to the IRA) through open market transactions and a 10b5-1 Trading Plan. As of April 17, 2026, total shares repurchased under our board authorizations are as follows:

									Class A Stock
			Repurchase Authorization						Dollar Value of Shares Repurchased						Number of Shares Repurchased
(in millions, except share data)
2021 Authorization			$	2,000.0					$	2,000.0					8,337,547
2023 Authorization			$	2,000.0					$	510.1					2,789,732
2025 Authorization (1)			$	4,000.0					$	1,022.8					6,293,588

(1)As of April 17, 2026, $2,977.2 million remains available for future share repurchases, excluding the impact of Federal excise tax owed pursuant to the IRA.

Common stock dividends

In April 2026, our Board of Directors declared a quarterly cash dividend of $1.03 per share of Class A Stock and $0.93 per share of Class 1 Stock payable in the first quarter of Fiscal 2027.

Purchase of noncontrolling interest

In October 2024, we purchased the remaining 25% noncontrolling interest in Nelson’s Green Brier, a portfolio of Tennessee-based craft bourbon and whiskey products.

19. STOCK-BASED EMPLOYEE COMPENSATION

We have two stock-based employee compensation plans (as further discussed below). Total compensation cost recognized for our stock-based awards and income tax benefits related thereto are as follows:

			For the Years Ended
			February 28, 2026						February 28, 2025						February 29, 2024
(in millions)
Total compensation cost recognized in our results of operations (1)			$	69.2					$	72.2					$	63.6
Income tax benefit related thereto recognized in our results of operations			$	10.2					$	10.6					$	9.5

(1)The majority is included in selling, general, and administrative expenses.

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Long-Term Stock Incentive Plan

Under our Long-Term Stock Incentive Plan, nonqualified stock options, restricted stock units, performance share units, and other stock-based awards may be granted to our employees, officers, and directors. The aggregate number of shares of our Class A Stock and Class 1 Stock available for awards under our Long-Term Stock Incentive Plan is 108,000,000 shares.

The exercise price, vesting period, and term of nonqualified stock options granted are established by the committee administering the plan (the “Committee”). The exercise price of any nonqualified stock option may not be less than the fair market value of our Class A Stock on the date of grant. Nonqualified stock options generally vest and become exercisable over a three-year period from the date of grant and expire as established by the Committee, but not later than 10 years after the grant date.

Grants of restricted stock units, performance share units, and other stock-based awards may contain such vesting periods, terms, conditions, and other requirements as the Committee may establish. Restricted stock unit awards are based on service and generally vest over one to three years from the date of grant. Performance share unit awards are based on service and the satisfaction of certain performance conditions, and vest over a required employee service period, generally from one to three years from the date of grant, which closely matches the performance period. The performance conditions include the achievement of specified financial or operational performance metrics, or market conditions which require the achievement of specified levels of stockholder return relative to other companies as defined in the applicable performance share unit agreement. The actual number of shares to be awarded upon vesting of a performance share unit award will range between 0% and 200% of the target award, based upon the measure of performance as certified by the Committee.

A summary of stock option activity under our Long-Term Stock Incentive Plan is as follows:

			For the Years Ended
			February 28, 2026												February 28, 2025												February 29, 2024
			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			2,258,033						$	212.95					2,564,288						$	203.47					3,067,962						$	194.47
Granted			—						$	—					124,418						$	260.11					151,848						$	226.76
Exercised			(59,844)						$	141.77					(393,016)						$	162.80					(584,302)						$	160.41
Forfeited			(26,800)						$	248.81					(29,237)						$	246.98					(55,351)						$	225.04
Expired			(168,175)						$	209.04					(8,420)						$	245.19					(15,869)						$	196.57
Outstanding as of last day of February			2,003,214						$	214.93					2,258,033						$	212.95					2,564,288						$	203.47
Exercisable			1,814,172						$	211.19					1,761,492						$	203.26					1,702,984						$	193.68

As of February 28, 2026, the aggregate intrinsic value of our options outstanding and exercisable was $1.9 million each. In addition, the weighted average remaining contractual life for our options outstanding and exercisable was 4.5 years and 4.3 years, respectively.

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The fair value of stock options vested, and the intrinsic value of and tax benefit realized from the exercise of stock options, are as follows:

			For the Years Ended
			February 28, 2026						February 28, 2025						February 29, 2024
(in millions)
Fair value of stock options vested			$	19.0					$	23.6					$	27.3
Intrinsic value of stock options exercised			$	2.4					$	34.6					$	54.6
Tax benefit realized from stock options exercised			$	0.6					$	5.4					$	10.4

The weighted average grant-date fair value of stock options granted and the weighted average inputs used to estimate the fair value on the date of grant using the Black-Scholes option-pricing model are as follows:

									For the Years Ended (1)
									February 28, 2025						February 29, 2024
Grant-date fair value									$	78.32					$	64.75
Expected life (2)									5.8 years						5.8 years
Expected volatility (3)									27.8%						28.8%
Risk-free interest rate (4)									4.7%						3.6%
Expected dividend yield (5)									1.6%						1.6%

(1)No stock options were granted for the year ended February 28, 2026.

(2)Based on historical experience of employees’ exercise behavior for similar type awards.

(3)Based primarily on historical volatility levels of our Class A Stock.

(4)Based on the implied yield currently available on U.S. Treasury zero coupon issues with a remaining term equal to the expected life.

(5)Based on the calculated yield on our Class A Stock at date of grant using the current fiscal year projected annualized dividend distribution rate.

A summary of restricted stock unit and performance share unit activity under our Long-Term Stock Incentive Plan is as follows:

			For the Years Ended
			February 28, 2026												February 28, 2025												February 29, 2024
			Number						Weighted Average Grant-Date Fair Value						Number						Weighted Average Grant-Date Fair Value						Number						Weighted Average Grant-Date Fair Value
Restricted Stock Units
Outstanding balance as of March 1, Nonvested			333,985						$	246.73					335,614						$	228.75					291,859						$	223.75
Granted			327,972						$	183.23					171,601						$	260.44					192,300						$	227.30
Vested			(155,194)						$	243.70					(139,589)						$	220.63					(116,937)						$	213.83
Forfeited			(94,902)						$	211.26					(33,641)						$	245.56					(31,608)						$	228.90
Outstanding balance as of last day of February, Nonvested			411,861						$	205.48					333,985						$	246.73					335,614						$	228.75

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			For the Years Ended
			February 28, 2026												February 28, 2025												February 29, 2024
			Number						Weighted Average Grant-Date Fair Value						Number						Weighted Average Grant-Date Fair Value						Number						Weighted Average Grant-Date Fair Value
Performance Share Units
Outstanding balance as of March 1, Nonvested			140,072						$	289.31					110,061						$	292.78					85,649						$	302.06
Granted			83,741						$	192.64					57,804						$	290.73					67,734						$	238.01
Performance achievement (1)			(26,457)						$	395.57					(6,366)						$	318.71					(10,725)						$	202.53
Vested			—						$	—					(14,485)						$	318.71					(21,848)						$	202.53
Forfeited			(17,717)						$	247.48					(6,942)						$	267.90					(10,749)						$	295.07
Outstanding balance as of last day of February, Nonvested			179,639						$	232.72					140,072						$	289.31					110,061						$	292.78

(1)Reflects the net number of awards achieved above (below) target levels based on actual performance measured at the end of the performance period.

The fair value of shares vested for our restricted stock unit and performance share unit awards is as follows:

			For the Years Ended
			February 28, 2026						February 28, 2025						February 29, 2024
(in millions)
Restricted stock units			$	28.7					$	35.4					$	27.0
Performance share units			$	—					$	3.7					$	5.0

The weighted average grant-date fair value of performance share units granted with a market condition and the weighted average inputs used to estimate the fair value on the date of grant using the Monte Carlo Simulation model are as follows:

			For the Years Ended
			February 28, 2026						February 28, 2025						February 29, 2024
Grant-date fair value			$	192.64					$	324.98					$	251.63
Grant-date price			$	183.61					$	261.71					$	224.38
Performance period			2.8 years						2.9 years						2.9 years
Expected volatility (1)			24.5		%				20.4		%				23.8		%
Risk-free interest rate (2)			3.7		%				4.7		%				3.8		%
Expected dividend yield (3)			0.0		%				0.0		%				0.0		%

(1)Based primarily on historical volatility levels of our Class A Stock.

(2)Based on the implied yield currently available on U.S. Treasury zero coupon issues with a remaining term equal to the performance period.

(3)No expected dividend yield as units granted earn dividend equivalents.

Employee Stock Purchase Plan

We have an Employee Stock Purchase Plan under which 9,000,000 shares of Class A Stock may be issued. Under the terms of the plan, eligible employees may purchase shares of our Class A Stock through payroll deductions. The purchase price is the lower of 85% of the fair market value of the stock on the first or last day of the purchase period.

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For the years ended February 28, 2026, February 28, 2025, and February 29, 2024, employees purchased 66,110 shares, 67,405 shares, and 59,408 shares, respectively, under this plan.

Other

As of February 28, 2026, there was $45.0 million of total unrecognized compensation cost related to nonvested stock-based compensation arrangements granted under our stock-based employee compensation plans. This cost is expected to be recognized in our results of operations over a weighted-average period of 1.7 years. With respect to the issuance of shares under any of our stock-based compensation plans, we have the option to issue authorized but unissued shares or treasury shares.

20. NET INCOME (LOSS) PER COMMON SHARE ATTRIBUTABLE TO CBI

The computation of basic and diluted net income (loss) per common share for the applicable years ended is as follows:

			February 28, 2026						February 28, 2025						February 29, 2024
(in millions, except per share data)
Net income (loss) attributable to CBI			$	1,686.7					$	(81.4)					$	1,727.4
Weighted average common shares outstanding – basic			175.414						181.476						183.307
Stock-based awards, primarily stock options (1)			0.154						—						0.652
Weighted average common shares outstanding – diluted			175.568						181.476						183.959
Net income (loss) per common share attributable to CBI – basic			$	9.62					$	(0.45)					$	9.42
Net income (loss) per common share attributable to CBI – diluted			$	9.61					$	(0.45)					$	9.39

(1)The following securities were excluded from the calculation of diluted net income (loss) per common share for Class A Stock, as the effect of including these would have been anti-dilutive:

			For the Years Ended
			February 28, 2026						February 28, 2025						February 29, 2024
(in millions, except exercise price)
Stock-based awards, primarily stock options			1.639						2.584						0.723
Weighted average exercise price, stock options			$	235.72					$	251.32					$	246.64

For the years ended February 28, 2026, and February 29, 2024, amounts were calculated using the treasury stock method. For the year ended February 28, 2025, all potentially dilutive securities outstanding at the end of the period were anti-dilutive due to the net loss position.

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21. ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS)

Other comprehensive income (loss) attributable to CBI includes the following components:

			Before Tax Amount						Tax (Expense) Benefit						Net of Tax Amount
(in millions)
For the Year Ended February 29, 2024
Other comprehensive income (loss) attributable to CBI:
Foreign currency translation adjustments:
Net gain (loss)			$	279.3					$	—					$	279.3
Amounts reclassified			—						—						—
Net gain (loss) recognized in other comprehensive income (loss)			279.3						—						279.3
Unrealized gain (loss) on cash flow hedges:
Net cash flow hedge gain (loss)			222.1						(26.4)						195.7
Amounts reclassified			(144.7)						16.7						(128.0)
Net gain (loss) recognized in other comprehensive income (loss)			77.4						(9.7)						67.7
Pension/postretirement adjustments:
Net actuarial gain (loss)			2.1						(0.8)						1.3
Amounts reclassified			—						—						—
Net gain (loss) recognized in other comprehensive income (loss)			2.1						(0.8)						1.3
Other comprehensive income (loss) attributable to CBI			$	358.8					$	(10.5)					$	348.3
For the Year Ended February 28, 2025
Other comprehensive income (loss) attributable to CBI:
Foreign currency translation adjustments:
Net gain (loss)			$	(786.7)					$	—					$	(786.7)
Amounts reclassified			—						—						—
Net gain (loss) recognized in other comprehensive income (loss)			(786.7)						—						(786.7)
Unrealized gain (loss) on cash flow hedges:
Net cash flow hedge gain (loss)			(172.4)						20.9						(151.5)
Amounts reclassified			(105.3)						12.4						(92.9)
Net gain (loss) recognized in other comprehensive income (loss)			(277.7)						33.3						(244.4)
Pension/postretirement adjustments:
Net actuarial gain (loss)			3.1						(0.9)						2.2
Amounts reclassified			—						—						—
Net gain (loss) recognized in other comprehensive income (loss)			3.1						(0.9)						2.2
Share of OCI of equity method investments:
Net gain (loss)			—						—						—
Amounts reclassified			(10.7)						0.1						(10.6)
Net gain (loss) recognized in other comprehensive income (loss)			(10.7)						0.1						(10.6)
Other comprehensive income (loss) attributable to CBI			$	(1,072.0)					$	32.5					$	(1,039.5)

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			Before Tax Amount						Tax (Expense) Benefit						Net of Tax Amount
(in millions)
For the Year Ended February 28, 2026
Other comprehensive income (loss) attributable to CBI:
Foreign currency translation adjustments:
Net gain (loss)			$	827.6					$	—					$	827.6
Amounts reclassified			—						—						—
Net gain (loss) recognized in other comprehensive income (loss)			827.6						—						827.6
Unrealized gain (loss) on cash flow hedges:
Net cash flow hedge gain (loss)			387.2						(45.9)						341.3
Amounts reclassified			(82.3)						9.6						(72.7)
Net gain (loss) recognized in other comprehensive income (loss)			304.9						(36.3)						268.6
Unrealized gain (loss) on net investment hedges:
Net investment hedge gain (loss)			(6.7)						1.7						(5.0)
Amounts reclassified			—						—						—
Net gain (loss) recognized in other comprehensive income (loss)			(6.7)						1.7						(5.0)
Pension/postretirement adjustments:
Net actuarial gain (loss)			(7.2)						2.1						(5.1)
Amounts reclassified			—						—						—
Net gain (loss) recognized in other comprehensive income (loss)			(7.2)						2.1						(5.1)
Share of OCI of equity method investments:
Net gain (loss)			—						—						—
Amounts reclassified			(0.2)						—						(0.2)
Net gain (loss) recognized in other comprehensive income (loss)			(0.2)						—						(0.2)
Other comprehensive income (loss) attributable to CBI			$	1,118.4					$	(32.5)					$	1,085.9

Accumulated other comprehensive income (loss), net of income tax effect, includes the following components:

			Foreign Currency Translation Adjustments						Unrealized Net Gain (Loss) on Derivative Instruments												Pension/ Postretirement Adjustments						Share of OCI of Equity Method Investments						Accumulated Other Comprehensive Income (Loss)
(in millions)
Balance at February 28, 2025			$	(683.8)					$	21.8											$	(0.4)					$	(0.3)					$	(662.7)
Other comprehensive income (loss):
Other comprehensive income (loss) before reclassification adjustments			827.6						336.3												(5.1)						—						1,158.8
Amounts reclassified from accumulated other comprehensive income (loss)			—						(72.7)												—						(0.2)						(72.9)
Other comprehensive income (loss)			827.6						263.6												(5.1)						(0.2)						1,085.9
Balance at February 28, 2026			$	143.8					$	285.4											$	(5.5)					$	(0.5)					$	423.2

Constellation Brands, Inc. FY 2026 Form 10-K			#WORTHREACHINGFOR I 106

PART II			ITEM 8. FINANCIAL STATEMENTS AND SUPPLEMENTARY DATA			Table of Contents

22. SIGNIFICANT CUSTOMERS AND CONCENTRATION OF CREDIT RISK

Net sales to our 10 largest Customers represented approximately 60% of our total net sales for each of the years ended February 28, 2026, February 28, 2025, and February 29, 2024, and are expected to continue to represent a significant portion of our revenues. Net sales to Customers which individually represent 10% or more of our net sales, and the associated accounts receivable from these Customers as a percentage of our total accounts receivable, are as follows:

			For the Years Ended
			February 28, 2026						February 28, 2025						February 29, 2024
Reyes Beer Division entities
Net sales			27.5		%				25.4		%				25.1		%
Accounts receivable			22.0		%				15.0		%				17.7		%
Southern Glazer’s Wine and Spirits
Net sales			6.7		%				11.2		%				11.7		%
Accounts receivable			16.7		%				32.9		%				28.1		%

Net sales for the Customers above are primarily reported within the Beer and Wine and Spirits segments, respectively. Our arrangements with certain of our Customers may, generally, be terminated by either party with prior notice. The majority of our accounts receivable balance is generated from sales to independent distributors with whom we have a predetermined collection date arranged through electronic funds transfer. We perform ongoing credit evaluations of our Customers’ financial position, and management is of the opinion that any risk of significant loss is reduced due to the diversity of our Customers and geographic sales area.

23. 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

24. SELECTED QUARTERLY FINANCIAL INFORMATION (UNAUDITED)

A summary of selected quarterly financial information is as follows:

			For the Three Months Ended
			February 28, 2026						February 28, 2025
(in millions, except per share data)
Net sales			$	1,920.2					$	2,164.2
Gross profit			$	951.7					$	1,114.7
Net income (loss) attributable to CBI (1)			$	201.8					$	(375.3)
Net income (loss) per common share attributable to CBI (1):
Basic – Class A Stock			$	1.16					$	(2.09)
Diluted – Class A Stock			$	1.16					$	(2.09)

(1)Includes the following:

			For the Three Months Ended
			February 28, 2026						February 28, 2025
(in millions, net of income tax effect)
Net income tax expense recognized for adjustments to valuation allowances			$	(110.0)					$	(73.3)
Asset impairment and related expenses			$	(42.1)					$	(364.2)
Net income tax benefit (expense) from the resolution of various tax examinations and assessments related to prior periods			$	93.4					$	(1.9)
Goodwill and intangible assets impairment			$	—					$	(497.6)
Unrealized net gain (loss) on securities measured at fair value			$	—					$	(45.4)
Gain (loss) on sale of business			$	—					$	195.0

Constellation Brands, Inc. FY 2026 Form 10-K			#WORTHREACHINGFOR I 107

PART II			OTHER KEY INFORMATION			Table of Contents