EX-12.1 2 stzex121_831201410q.htm EXHIBIT 12.1 STZ EX 12.1_8.31.2014 10Q

Exhibit 12.1


CONSTELLATION BRANDS, INC. AND SUBSIDIARIES
STATEMENT OF COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES (a) 
(in millions of dollars)


 
For the Six Months Ended
 
   For the Fiscal Years Ended
 
August 31,
2014
 
August 31,
2013
 
February 28, 2014
 
February 28, 2013
 
February 29, 2012
 
February 28, 2011
 
February 28, 2010
Earnings:
 
 
 
 
 
 
 
 
 
 
 
 
 
Income before income taxes
$
595.0

 
$
1,669.7

 
$
2,202.3

 
$
516.4

 
$
534.0

 
$
551.0

 
$
259.3

 
 
 
 
 
 
 
 
 
 
 
 
 
 
Plus fixed charges
177.2

 
151.6

 
337.5

 
239.4

 
194.0

 
208.3

 
286.0

 
 
 
 
 
 
 
 
 
 
 
 
 
 
Less interest capitalized
(2.6
)
 
—

 
(0.9
)
 
—

 
—

 
(0.3
)
 
(0.4
)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Earnings, as adjusted
$
769.6

 
$
1,821.3

 
$
2,538.9

 
$
755.8

 
$
728.0

 
$
759.0

 
$
544.9

 
 
 
 
 
 
 
 
 
 
 
 
 
 
Fixed Charges:
 
 
 
 
 
 
 
 
 
 
 
 
 
Interest on debt and capitalized leases, amortization of debt issuance costs, and amortization of discount on debt (b)
$
174.8

 
$
149.2

 
$
332.2

 
$
234.3

 
$
188.0

 
$
200.5

 
$
277.5

 
 
 
 
 
 
 
 
 
 
 
 
 
 
Interest element of rentals
2.4

 
2.4

 
5.3

 
5.1

 
6.0

 
7.8

 
8.5

 
 
 
 
 
 
 
 
 
 
 
 
 
 
Total fixed charges
$
177.2

 
$
151.6

 
$
337.5

 
$
239.4

 
$
194.0

 
$
208.3

 
$
286.0

 
 
 
 
 
 
 
 
 
 
 
 
 
 
Ratio of Earnings to Fixed Charges
4.3x

 
12.0x

 
7.5x

 
      3.2x

 
3.8x

 
      3.6x

 
1.9x



(a) 
For the purpose of calculating the ratio of earnings to fixed charges, “earnings” represent income before income taxes (adjusted, as appropriate, for equity in earnings of equity method investees) plus fixed charges less interest capitalized. “Fixed charges” consist of interest expensed and capitalized, amortization of debt issuance costs, amortization of discount on debt, and the portion of rental expense which management believes is representative of the interest component of lease expense.

(b) 
The Company’s policy is to classify interest expense recognized on uncertain tax positions as income tax expense. The Company has excluded interest expense recognized on uncertain tax positions from the Ratio of Earnings to Fixed Charges.