Loss on settlement of treasury lock contracts



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



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| CONSTELLATION BRANDS, INC. AND SUBSIDIARIESCONSOLIDATED STATEMENTS OF CASH FLOWS(in millions) |
|  | For the Years Ended |
|  | February 28,2022 |  | February 28,2021 |  | February 29,2020 |
| CASH FLOWS FROM OPERATING ACTIVITIES |  |  |  |  |  |
| Net income (loss) | $ | 1.0  |  |  | $ | 2,031.8  |  |  | $ | 21.4  |  |
| Adjustments to reconcile net income (loss) to net cash provided by operating activities: |  |  |  |  |  |
| Unrealized net (gain) loss on securities measured at fair value | 1,644.7  |  |  | (802.0) |  |  | 2,126.4  |  |
| Deferred tax provision (benefit) | 84.8  |  |  | 336.4  |  |  | (1,153.7) |  |
| Depreciation | 337.3  |  |  | 293.8  |  |  | 326.5  |  |
| Stock-based compensation | 44.9  |  |  | 63.0  |  |  | 60.4  |  |
| Equity in (earnings) losses of equity method investees and related activities, net of distributed earnings | 61.6  |  |  | 673.4  |  |  | 560.8  |  |
| Noncash lease expense | 81.9  |  |  | 83.3  |  |  | 88.3  |  |
| Impairment and amortization of intangible assets | 5.1  |  |  | 11.3  |  |  | 16.7  |  |
| Amortization of debt issuance costs and loss on extinguishment of debt | 39.9  |  |  | 24.3  |  |  | 16.1  |  |
| Net (gain) loss on sale of unconsolidated investment | (51.0) |  |  | —  |  |  | (0.4) |  |
| Impairment of brewery construction in progress | 665.9  |  |  | —  |  |  | —  |  |
| Impairment of assets held for sale | —  |  |  | 24.0  |  |  | 449.7  |  |
| (Gain) loss on sale of business | (1.7) |  |  | (14.2) |  |  | (74.1) |  |
| Loss on inventory and related contracts associated with business optimization | —  |  |  | 25.8  |  |  | 123.0  |  |
| Loss on settlement of treasury lock contracts | —  |  |  | (29.3) |  |  | —  |  |
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| Change in operating assets and liabilities, net of effects from purchase and sale of business: |  |  |  |  |  |
| Accounts receivable | (114.0) |  |  | 59.6  |  |  | (22.0) |  |
| Inventories | (261.3) |  |  | 193.7  |  |  | (29.5) |  |
| Prepaid expenses and other current assets | (113.2) |  |  | 65.7  |  |  | 8.1  |  |
| Accounts payable | 213.7  |  |  | (95.7) |  |  | 16.8  |  |
| Deferred revenue | 118.0  |  |  | —  |  |  | 1.4  |  |
| Other accrued expenses and liabilities | (28.8) |  |  | (75.0) |  |  | (58.5) |  |
| Other | (23.4) |  |  | (63.4) |  |  | 73.7  |  |
| Total adjustments | 2,704.4  |  |  | 774.7  |  |  | 2,529.7  |  |
| Net cash provided by (used in) operating activities | 2,705.4  |  |  | 2,806.5  |  |  | 2,551.1  |  |
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| CASH FLOWS FROM INVESTING ACTIVITIES |  |  |  |  |  |
| Purchase of property, plant, and equipment | (1,026.8) |  |  | (864.6) |  |  | (726.5) |  |
| Purchase of business, net of cash acquired | (53.5) |  |  | (19.9) |  |  | (36.2) |  |
| Investments in equity method investees and securities | (36.6) |  |  | (222.4) |  |  | (48.2) |  |
| Proceeds from sale of assets | 4.1  |  |  | 18.9  |  |  | 8.3  |  |
| Proceeds from sale of unconsolidated investment | 74.4  |  |  | —  |  |  | 1.5  |  |
| Proceeds from sale of business | 4.6  |  |  | 999.5  |  |  | 269.7  |  |
| Other investing activities | (2.0) |  |  | 0.6  |  |  | 0.4  |  |
| Net cash provided by (used in) investing activities | (1,035.8) |  |  | (87.9) |  |  | (531.0) |  |
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| Constellation Brands, Inc. FY 2022 Form 10-K | #WORTHREACHINGFOR    I    67 |


