Group 1 - Proactive provides fast, accessible, informative, and actionable business and finance news content to a global investment audience [2][3] - The news team covers key finance and investing hubs including London, New York, Toronto, Vancouver, Sydney, and Perth [2] - Proactive specializes in medium and small-cap markets while also keeping the community updated on blue-chip companies, commodities, and broader investment stories [2][3] Group 2 - The team delivers news and insights across various sectors including biotech, pharma, mining, natural resources, battery metals, oil and gas, crypto, and emerging technologies [3] - Proactive adopts technology to enhance workflows and improve content production [4][5] - All content published by Proactive is edited and authored by humans, ensuring adherence to best practices in content production and search engine optimization [5]

Market Overview - The U.S. stock market is experiencing upward momentum, with all three major indices opening in the green, led by the Dow and Nasdaq [5][10] - The S&P 500 recently broke a seven-day winning streak, indicating some downward momentum [6] - The U.S. dollar has come under pressure year-to-date, down more than 9%, but showed a slight increase of about 0.2% this morning [7][24] Debasement Trade - Investors are increasingly turning to gold and cryptocurrencies like Bitcoin due to waning confidence in the government and fears of inflation, a trend referred to as the "debasement trade" [3][12] - Gold futures have crossed $4,000 per ounce, reflecting a more than 6% increase over the past 10 days, while Bitcoin has risen approximately 9% in the same period [7][32] - The simultaneous rise of both gold and Bitcoin is unusual, as gold is typically seen as a safe haven while Bitcoin is viewed as a riskier asset [27] Federal Reserve Insights - Goldman Sachs has stated that while there is no current stock market bubble, bubble-like activity is being observed in stock valuations and market concentration [11] - Federal Reserve officials are focusing on private sector data due to the government shutdown, with a 94% chance of a rate cut expected at the end of the month [18][19] - The Fed's potential rate cuts are seen as a positive catalyst for the stock market, encouraging investors to remain long on stocks [20][22] Company-Specific Insights - Nvidia is investing up to $2 billion in Elon Musk's AI company, XAI, as part of a larger $20 billion funding round, indicating strong interest in AI technologies [9] - Constellation Brands reported a 7% decline in beer sales and a 19% drop in wine and spirits sales, attributed to various factors including immigration policies and a slowing job market [39][42] - Despite challenges, Constellation Brands remains optimistic about its brand performance, having gained market share in 49 of 50 markets year-to-date [46]

Core Viewpoint - Constellation Brands' CEO expresses cautious optimism about the business having potentially reached the bottom regarding macro pressures affecting sales, despite ongoing volatility in the market [1][3]. Group 1: Business Performance and Market Conditions - The company has experienced unprecedented volatility with mixed results across different markets, particularly noting that high Hispanic zip code areas are performing significantly worse than the general market [2][3]. - Hispanic consumers represent approximately half of Constellation's total beer business, and weakened consumer sentiment among this demographic has been a concern due to socioeconomic factors impacting drinking occasions [3]. - California has been identified as a major challenge, with labor roles not materializing as expected, which could affect the beer business positively if construction opportunities improve [4]. Group 2: Consumer Sentiment and Loyalty - A recent study indicated that 80% of surveyed consumers, both Hispanic and non-Hispanic, express concerns about the socioeconomic environment, with 70% specifically worried about their personal finances [5]. - Despite the challenges, there is an increase in brand loyalty, with loyalty for Corona rising in the general market and for Modelo among Hispanic consumers [6].

Core Insights - Constellation Brands, Inc. is facing challenges in the alcohol market, particularly due to the impact of GLP-1 drugs that reduce cravings for alcohol, affecting sales of its major brands like Corona and Modelo [1][2] - The company's stock has seen a decline, with a current valuation at 12 times earnings, which is noted as the lowest seen, although this multiple contraction is considered justified given recent performance [1] Company Overview - Constellation Brands produces and markets a variety of alcoholic beverages, including beer, wine, and spirits, under well-known brands such as Corona, Modelo, Robert Mondavi, Kim Crawford, and SVEDKA [2] - The company has been described as a "fallen idol" in the consumer packaged goods sector, reflecting broader issues within the alcohol industry [2] Market Context - The alcohol industry is currently experiencing a downturn, with Constellation Brands exemplifying the struggles faced by companies in this sector [2] - The introduction and popularity of GLP-1 drugs are significantly impacting consumer behavior, particularly in relation to alcohol consumption [2]

Investors have had to rely on secondary, independently produced data, along with remarks from monetary policymakers, to gauge the likelihood that the Federal Reserve will implement its second rate cut of the year at this month's policy meeting. "The New York Fed report probably gave traders an excuse to take some profits since the S&P had been up for seven days in a row," said Sam Stovall, chief investment strategist of Economically sensitive sectors, including homebuilding , housing, airlines, and transp ...

[Music] That's closing bell on Wall Street and now it's market domination overtime. We're giving you full coverage of all the moves to get you up to speed on the action from today's trade. Yahoo Fin's Jared Blickery joining us here to break it all down.Jared, >> thank you Josh. No record highs to speak of in the major indices, at least on a closing basis. on intraday one.We did hit a couple right after the open. Here's the Dow. We opened in the green territory, drifted into the red, pretty much stayed there ...

Market Overview - U.S. equities experienced a pullback on October 7, 2025, following a seven-day winning streak, with major indexes retreating as investors reacted to corporate news, political uncertainty, and a reassessment of AI sector valuations [1][9] - The S&P 500 declined by 0.4%, the Nasdaq Composite fell by 0.7%, and the Dow Jones Industrial Average slipped by 105 points or 0.2%, indicating a pause after a strong rally driven by AI advancements and expectations of easier monetary policy from the Federal Reserve [2][9] Economic and Political Context - The ongoing U.S. government shutdown, now in its seventh day, has delayed the release of key economic data, including the September jobs report, creating uncertainty in the market and complicating Federal Reserve policy decisions [3][9] - Safe-haven assets, such as gold, saw increased demand, with futures surging above $4,000 per ounce, reflecting investor caution amid inflation pressures and geopolitical tensions [3] Corporate Developments - Oracle's shares dropped over 5% due to lower-than-expected margins in its cloud business and losses on Nvidia chip rentals, contributing to the Nasdaq's decline [5] - Tesla's stock fell 4.4% after introducing a low-cost version of its Model Y SUV, raising concerns about margin compression [5] - Advanced Micro Devices (AMD) shares rose nearly 4% following a partnership with OpenAI, which is purchasing several generations of AMD's AI chips [5] - AppLovin's shares surged 7.6% after a significant drop the previous day, as the SEC investigated its data-collection practices [5] - Constellation Brands' stock increased over 3% after reporting smaller-than-expected quarterly sales declines, although it lowered its full-year profit outlook [5] - IBM's stock jumped 3% after announcing a partnership with Anthropic, highlighting ongoing interest in AI collaborations [5] - Comerica's shares rose 13.7% following an acquisition agreement by Fifth Third Bancorp valued at $10.9 billion, while Fifth Third's stock fell 1.4% [5] Upcoming Events - The third-quarter earnings season is set to begin, with major banks like JPMorgan Chase, Citigroup, and Wells Fargo scheduled to report results, with analysts estimating a year-over-year earnings growth rate of 7.9% for S&P 500 companies [7] - Earnings reports from Saratoga Investment and Penguin Solutions are anticipated, with projections of $0.67 per share on revenue of $32.39 million and $0.31 per share on revenue of $341.26 million, respectively [8]

Core Insights - Constellation Brands Inc. reported quarterly earnings that exceeded Wall Street estimates despite a decline in beer sales [1][2] - The company posted second-quarter earnings of $3.63 per share, surpassing analyst expectations of $3.35 [1] - Revenue for the quarter fell 2% to $2.48 billion, slightly below the consensus forecast of $2.51 billion [1] Sales Performance - Beer sales dropped 7% year-over-year, attributed to an 8.7% decrease in shipment volumes as distributors reduced inventories and consumers cut back on spending [2] - The company reaffirmed its fiscal 2026 outlook, projecting overall earnings per share between $11.30 and $11.60 [2] Future Projections - Constellation Brands expects beer net sales to decline by 2–4% and beer operating income to decrease by 7–9% [2]

Core Insights - Constellation Brands, Inc. reported second-quarter fiscal 2026 results with both sales and earnings exceeding Zacks Consensus Estimates despite year-over-year declines due to weak consumer demand and socioeconomic challenges [1][2]. Financial Performance - Comparable earnings per share (EPS) were $3.63, a 16% decline year over year, but above the Zacks Consensus Estimate of $3.37. Reported EPS was $2.65 compared to a loss of $6.59 in the same quarter last year [2]. - Net sales decreased 15% year over year to $2.48 billion, surpassing the Zacks Consensus Estimate of $2.46 billion. Organic net sales fell 8% year over year [2]. - The stock price increased by 3.3% in after-market trading following the earnings release, reflecting better-than-expected performance [3]. Segment Performance - Beer segment sales declined 7% year over year to $2.35 billion, driven by an 8.7% drop in shipment volumes due to socioeconomic headwinds and distributor inventory rebalancing. Depletions fell 2.7%, with notable declines in Modelo Especial, Corona Extra, and Modelo Chelada brands, partially offset by growth in Pacifico and Victoria [4]. - Wine and spirits segment sales plummeted 65% year over year to $136 million, impacted by a 76.4% decline in shipment volumes due to divestitures and changes in distributor obligations, although depletions grew nearly 2% [5]. Margins and Operating Income - Comparable operating income was $886.2 million, down from $1,019.1 million in the prior-year quarter, attributed to weak performance in beer, wine, and spirits [6]. - Operating income for the beer segment fell 12% year over year to $951.6 million, with the operating margin contracting by 200 basis points to 40.6% due to higher costs and increased marketing expenses [7]. - The wine and spirits segment reported an operating loss of $19.8 million, a significant decline from an operating income of $70.5 million in the previous year, with margins affected by divestitures and contractual changes [8]. Financial Position and Cash Flow - As of August 31, 2025, cash and cash equivalents stood at $72 million, long-term debt was $9.8 billion, and total shareholders' equity was $7.5 billion. The company generated an operating cash flow of $1.5 billion and an adjusted free cash flow of $1.1 billion in Q2 FY26 [9]. - The company returned nearly $604 million to shareholders through buybacks and dividends, with a quarterly dividend of $1.02 per share announced [10]. Future Outlook - Constellation Brands forecasts operating cash flow of $2.5-$2.6 billion and free cash flow of $1.3-$1.4 billion for fiscal 2026, with planned capital expenditures of $1.2 billion [11]. - The company anticipates a decline in enterprise organic net sales of 4-6% and a decrease in beer segment net sales of 2-4%. The wine and spirits segment is expected to decline by 17-20% [12]. - Management projects a comparable EPS guidance of $11.30-$11.60 for fiscal 2026, with reported EPS expected to be $9.86-$10.16 [14].

[FORM 10-Q Filing Information](index=1&type=section&id=FORM%2010-Q%20Filing%20Information) This section details the filing specifics of the Quarterly Report on Form 10-Q, including the reporting period and outstanding shares - Constellation Brands, Inc. filed its Quarterly Report on Form 10-Q for the period ended **August 31, 2025**[2](index=2&type=chunk) - As of **September 30, 2025**, there were **175,013,336 shares of Class A Common Stock** and **27,167 shares of Class 1 Common Stock** outstanding[6](index=6&type=chunk) - The registrant is classified as a **Large Accelerated Filer**[4](index=4&type=chunk) [Defined Terms](index=3&type=section&id=DEFINED%20TERMS) This section provides definitions for key terms and abbreviations used throughout the Form 10-Q, including financial measures, company initiatives (e.g., 2025 Restructuring Initiative, Wine Divestitures), and operational concepts (e.g., Depletions, DTC) [Part I – Financial Information](index=7&type=section&id=PART%20I%20%E2%80%93%20FINANCIAL%20INFORMATION) This part presents the company's unaudited consolidated financial statements and management's discussion and analysis of financial condition and results of operations [Item 1. Financial Statements](index=7&type=section&id=Item%201.%20Financial%20Statements) This section presents the unaudited consolidated financial statements, including balance sheets, statements of comprehensive income (loss), statements of changes in stockholders' equity, and statements of cash flows, along with detailed notes explaining the basis of presentation, significant transactions, and accounting policies [Consolidated Balance Sheets](index=7&type=section&id=Consolidated%20Balance%20Sheets) This section provides a snapshot of the company's assets, liabilities, and equity at specific points in time, highlighting key changes Consolidated Balance Sheet Highlights (in millions) | Item | August 31, 2025 | February 28, 2025 | Change | | :--------------------------------------- | :---------------- | :------------------ | :------- | | Total assets | $21,419.4 | $21,652.3 | $(232.9) | | Total liabilities | $13,633.1 | $14,517.5 | $(884.4) | | Total stockholders' equity | $7,786.3 | $7,134.8 | $651.5 | - Current assets decreased from **$3,716.4 million** to **$2,878.9 million**, primarily due to the divestiture of assets held for sale (from **$913.5 million** to **$0**)[19](index=19&type=chunk) - Property, plant, and equipment, net, increased from **$7,409.8 million** to **$8,002.2 million**[19](index=19&type=chunk) [Consolidated Statements of Comprehensive Income (Loss)](index=8&type=section&id=Consolidated%20Statements%20of%20Comprehensive%20Income%20%28Loss%29) This section details the company's financial performance over periods, including net sales, operating income, and net income Consolidated Statements of Comprehensive Income (Loss) Highlights (in millions, except per share data) | Item | Six Months Ended Aug 31, 2025 | Six Months Ended Aug 31, 2024 | Three Months Ended Aug 31, 2025 | Three Months Ended Aug 31, 2024 | | :--------------------------------------- | :---------------------------- | :---------------------------- | :------------------------------ | :------------------------------ | | Net sales | $4,996.0 | $5,580.7 | $2,481.0 | $2,918.9 | | Operating income (loss) | $1,587.8 | $(287.8) | $874.0 | $(1,229.4) | | Net income (loss) attributable to CBI | $982.1 | $(322.0) | $466.0 | $(1,199.0) | | Diluted net income (loss) per common share attributable to CBI | $5.55 | $(1.77) | $2.65 | $(6.59) | - Operating income and net income attributable to CBI significantly improved year-over-year, primarily due to the absence of a **$2,250.0 million goodwill impairment charge** recorded in the prior year (Six Months and Three Months Ended August 31, 2024)[22](index=22&type=chunk) - Net sales decreased by **10.5%** for the six months and **15.0%** for the three months ended August 31, 2025, compared to the prior year[22](index=22&type=chunk) [Consolidated Statements of Changes in Stockholders' Equity](index=9&type=section&id=Consolidated%20Statements%20of%20Changes%20in%20Stockholders%27%20Equity) This section outlines the changes in the company's equity accounts, including impacts from net income, share repurchases, and dividends Changes in Stockholders' Equity (in millions) | Item | Balance at Feb 28, 2025 | Balance at Aug 31, 2025 | Change | | :--------------------------------------- | :---------------------- | :---------------------- | :------- | | Total CBI stockholders' equity | $6,882.0 | $7,500.4 | $618.4 | | Noncontrolling interests | $252.8 | $285.9 | $33.1 | | Total stockholders' equity | $7,134.8 | $7,786.3 | $651.5 | - The increase in total stockholders' equity was driven by net income of **$982.1 million** and positive other comprehensive income, partially offset by **$604.0 million** in share repurchases and **$360.0 million** in dividends declared during the six months ended August 31, 2025[25](index=25&type=chunk) [Consolidated Statements of Cash Flows](index=11&type=section&id=Consolidated%20Statements%20of%20Cash%20Flows) This section reports the cash generated and used by operating, investing, and financing activities over specific periods Consolidated Statements of Cash Flows (Six Months Ended August 31, in millions) | Activity | 2025 | 2024 | Change | | :--------------------------------------- | :-------- | :-------- | :-------- | | Net cash provided by (used in) operating activities | $1,489.3 | $1,872.3 | $(383.0) | | Net cash provided by (used in) investing activities | $464.8 | $(857.6) | $1,322.4 | | Net cash provided by (used in) financing activities | $(1,953.1)| $(1,104.0)| $(849.1) | | Net increase (decrease) in cash and cash equivalents | $3.9 | $(87.8) | $91.7 | - Net cash provided by operating activities decreased by **$383.0 million**, largely due to changes in operating assets and liabilities, despite higher net income[30](index=30&type=chunk)[226](index=226&type=chunk) - Investing activities shifted from a net use of cash to a net provision of cash, primarily driven by **$851.1 million** in proceeds from the sale of businesses (2025 Wine Divestitures) and reduced capital expenditures[30](index=30&type=chunk)[227](index=227&type=chunk) - Financing activities used significantly more cash, primarily due to increased principal payments of long-term debt (**$902.1 million**) and purchases of treasury stock (**$604.0 million**)[32](index=32&type=chunk)[228](index=228&type=chunk) [Notes to Consolidated Financial Statements](index=13&type=section&id=Notes%20to%20Consolidated%20Financial%20Statements) This section provides detailed explanations and disclosures supporting the consolidated financial statements [1. Basis of Presentation](index=13&type=section&id=1.%20Basis%20of%20Presentation) This note describes the accounting principles and conventions used in preparing the interim financial statements - The financial statements are unaudited and prepared in accordance with SEC rules for quarterly reporting, reflecting all necessary normal recurring adjustments[33](index=33&type=chunk) - Interim results are not necessarily indicative of annual results[33](index=33&type=chunk) [2. Acquisitions and Divestitures](index=13&type=section&id=2.%20Acquisitions%20and%20Divestitures) This note details significant business acquisitions and divestitures, including their financial impacts and proceeds - Acquired Sea Smoke, a luxury wine business, for **$158.7 million** in **June 2024**, including goodwill, inventory, and a trademark[34](index=34&type=chunk) - Completed 2025 Wine Divestitures on **June 2, 2025**, selling mainstream wine brands for **$846.5 million** in net cash proceeds, resulting in a **$15.7 million loss on sale**. Proceeds were used for debt repayment[35](index=35&type=chunk) - Sold the SVEDKA brand and related assets on **January 6, 2025**, with proceeds used for general corporate purposes, including share repurchases, capital expenditures, and debt repayment[36](index=36&type=chunk) Assets Held for Sale (February 28, 2025, in millions) | Asset Category | Amount | | :--------------------------------------- | :----- | | Inventories | $788.7 | | Property, plant, and equipment | $474.4 | | Intangible assets | $127.9 | | Less: Asset impairment | $(478.0)| | **Total Assets held for sale** | **$913.5**| [3. Restructuring](index=14&type=section&id=3.%20Restructuring) This note outlines the company's restructuring initiatives, including estimated costs and expected savings - The 2025 Restructuring Initiative is an enterprise-wide cost savings and restructuring effort expected to be largely completed within **Fiscal 2026**[39](index=39&type=chunk) - Estimated cumulative pre-tax costs for the initiative are **$80 million to $100 million**, with net annualized cost savings expected to be fully realized by **Fiscal 2028**, exceeding **$200 million**[39](index=39&type=chunk)[142](index=142&type=chunk) Pre-tax Restructuring Costs Incurred (in millions) | Item | Six Months Ended Aug 31, 2025 | Three Months Ended Aug 31, 2025 | | :--------------------------------------- | :---------------------------- | :------------------------------ | | Consulting services | $21.5 | $8.2 | | Other costs | $0.1 | $0.1 | | **Total** | **$21.6** | **$8.3** | Cumulative Pre-tax Restructuring Costs (as of August 31, 2025, in millions) | Item | Amount | Percent of Total Costs | | :--------------------------------------- | :----- | :--------------------- | | Employee termination | $46.9 | 66% | | Consulting services | $24.3 | 34% | | Other costs | $0.1 | 0% | | **Total** | **$71.3**| **100%** | [4. Inventories](index=15&type=section&id=4.%20Inventories) This note provides details on the composition and valuation methods of the company's inventory - Inventories are stated at the lower of cost (primarily FIFO method) or net realizable value[43](index=43&type=chunk) Inventories (in millions) | Category | August 31, 2025 | February 28, 2025 | | :--------------------------------------- | :---------------- | :------------------ | | Raw materials and supplies | $216.2 | $230.2 | | In-process inventories | $499.4 | $540.9 | | Finished case goods | $724.1 | $666.1 | | **Total Inventories** | **$1,439.7** | **$1,437.2** | [5. Prepaid Expenses and Other](index=15&type=section&id=5.%20Prepaid%20Expenses%20and%20Other) This note details the components of prepaid expenses and other current assets Prepaid Expenses and Other (in millions) | Category | August 31, 2025 | February 28, 2025 | | :--------------------------------------- | :---------------- | :------------------ | | Value added taxes receivable | $278.4 | $241.3 | | Prepaid excise and sales taxes | $157.1 | $150.4 | | Derivative assets | $131.1 | $67.2 | | Prepaid advertising | $30.5 | $16.6 | | Prepaid insurance | $22.0 | $9.7 | | Other | $80.5 | $75.9 | | **Total** | **$699.6** | **$561.1** | - Total prepaid expenses and other increased by **$138.5 million**, primarily driven by a **$63.9 million** increase in derivative assets and a **$37.1 million** increase in value added taxes receivable[44](index=44&type=chunk) [6. Derivative Instruments](index=15&type=section&id=6.%20Derivative%20Instruments) This note describes the company's use of derivative instruments for managing market risks and their notional values - The company uses derivative instruments (foreign currency, commodity, net investment hedges) to manage market risks and reduce volatility, not for trading or speculative purposes[255](index=255&type=chunk) Aggregate Notional Value of Outstanding Derivative Instruments (in millions) | Type | August 31, 2025 | February 28, 2025 | | :--------------------------------------- | :---------------- | :------------------ | | Foreign currency contracts (hedging) | $2,776.6 | $2,843.6 | | Pre-issuance hedge contracts (hedging) | $0 | $275.0 | | Net investment hedge contracts (hedging) | $145.5 | $0 | | Foreign currency contracts (non-hedging) | $487.2 | $378.2 | | Commodity derivative contracts (non-hedging)| $327.1 | $322.1 | - In **April 2025**, cross-currency swaps were entered into and designated as net investment hedges to protect against foreign currency exchange rate fluctuations in non-U.S. operations[48](index=48&type=chunk) - The company expects **$66.4 million** of net gains (net of income tax effect) from cash flow hedges to be reclassified from AOCI to results of operations within the next **12 months**[54](index=54&type=chunk) [7. Fair Value of Financial Instruments](index=18&type=section&id=7.%20Fair%20Value%20of%20Financial%20Instruments) This note explains the fair value hierarchy and provides fair value measurements for financial instruments - Fair value measurements are categorized into a three-level hierarchy: **Level 1** (quoted prices in active markets), **Level 2** (observable inputs), and **Level 3** (unobservable inputs). Derivative instruments are primarily **Level 2**[56](index=56&type=chunk)[57](index=57&type=chunk)[58](index=58&type=chunk) Long-term Debt Carrying Amount vs. Fair Value (in millions) | Date | Carrying Amount | Estimated Fair Value | | :--------------------------------------- | :---------------- | :------------------- | | August 31, 2025 | $10,292.4 | $9,677.9 | | February 28, 2025 | $10,691.0 | $9,999.0 | - For the six months ended August 31, 2025, total losses from nonrecurring fair value measurements were **$53.6 million**, including **$52.1 million** for assets held for sale and related net assets, and **$1.5 million** for equity method investments[64](index=64&type=chunk) - A **$2,250.0 million goodwill impairment** was recognized in the Wine and Spirits reporting unit for the six months ended August 31, 2024, due to negative market trends[64](index=64&type=chunk)[66](index=66&type=chunk)[67](index=67&type=chunk) [8. Goodwill](index=21&type=section&id=8.%20Goodwill) This note details the carrying amount of goodwill by segment and any impairment charges recognized Goodwill Carrying Amount by Segment (in millions) | Segment | February 29, 2024 | February 28, 2025 | August 31, 2025 | | :--------------------------------------- | :---------------- | :---------------- | :---------------- | | Beer | $5,238.2 | $5,126.8 | $5,179.3 | | Wine and Spirits | $2,742.1 | $0 | $0 | | **Consolidated** | **$7,980.3** | **$5,126.8** | **$5,179.3** | - The Wine and Spirits segment's goodwill was written down to **zero** in **Fiscal 2025** due to goodwill impairments resulting from negative trends in the U.S. wholesale market and declines in mainstream and premium wine brands[71](index=71&type=chunk) - Goodwill for the Beer segment increased by **$52.5 million** due to foreign currency translation adjustments[70](index=70&type=chunk) [9. Intangible Assets](index=22&type=section&id=9.%20Intangible%20Assets) This note provides a breakdown of amortizable and nonamortizable intangible assets Intangible Assets (Net Carrying Amount, in millions) | Category | August 31, 2025 | February 28, 2025 | | :--------------------------------------- | :---------------- | :------------------ | | Amortizable intangible assets | $14.5 | $15.2 | | Nonamortizable intangible assets (Trademarks)| $2,518.9 | $2,517.1 | | **Total intangible assets** | **$2,533.4** | **$2,532.3** | - Trademarks constitute the vast majority of nonamortizable intangible assets[72](index=72&type=chunk) - No costs were incurred to renew or extend the term of acquired intangible assets during the reported periods[72](index=72&type=chunk) [10. Other Assets](index=22&type=section&id=10.%20Other%20Assets) This note details the various components categorized as other assets, including equity method investments and derivative assets Other Assets (in millions) | Category | August 31, 2025 | February 28, 2025 | | :--------------------------------------- | :---------------- | :------------------ | | Operating lease right-of-use asset | $606.3 | $545.7 | | Income taxes receivable | $153.3 | $135.5 | | Equity method investments | $124.8 | $124.5 | | Derivative assets | $113.6 | $41.6 | | Other investments in debt and equity securities | $62.5 | $60.3 | | Exchangeable Shares | $21.2 | $21.2 | | Other | $155.5 | $132.9 | | **Total** | **$1,237.2** | **$1,061.7** | - Total other assets increased by **$175.5 million**, primarily due to increases in operating lease right-of-use assets and derivative assets[73](index=73&type=chunk) - Certain equity method investments and Exchangeable Shares were evaluated for impairment and written down due to business underperformance and declining share prices, respectively[69](index=69&type=chunk)[75](index=75&type=chunk)[77](index=77&type=chunk) - A net gain of **$83.3 million** was recognized in connection with Exchangeable Shares for the six months ended August 31, 2024, following the conversion of Canopy common shares[77](index=77&type=chunk)[152](index=152&type=chunk) [11. Borrowings](index=23&type=section&id=11.%20Borrowings) This note provides information on the company's short-term and long-term debt, including refinancing activities Borrowings (in millions) | Category | August 31, 2025 | February 28, 2025 | | :--------------------------------------- | :---------------- | :------------------ | | Short-term borrowings | $252.5 | $806.7 | | Long-term debt (including current maturities)| $10,292.4 | $10,691.0 | | **Total Borrowings** | **$10,544.9** | **$11,497.7** | - Total debt outstanding decreased by **$952.8 million** from February 28, 2025, to August 31, 2025[229](index=229&type=chunk) - The company refinanced its **$2.25 billion** revolving credit facility (2025 Credit Agreement) and entered into a new **$500.0 million** delayed draw term loan facility (2025 Term Credit Agreement) in **April and May 2025**, respectively[79](index=79&type=chunk)[80](index=80&type=chunk)[231](index=231&type=chunk)[232](index=232&type=chunk) - Repaid **$900.0 million** in senior notes (**4.75% December 2015** and **5.00% February 2023**) using proceeds from the 2025 Wine Divestitures and cash on hand, while issuing **$500.0 million** of new **4.80% May 2025 Senior Notes**[84](index=84&type=chunk)[86](index=86&type=chunk)[233](index=233&type=chunk)[234](index=234&type=chunk) - Remaining borrowing capacity under the revolving credit facility was **$1,986.0 million** as of **August 31, 2025**[238](index=238&type=chunk) [12. Income Taxes](index=25&type=section&id=12.%20Income%20Taxes) This note explains the effective tax rates and significant factors influencing the company's income tax provision Effective Tax Rate | Period | August 31, 2025 | August 31, 2024 | | :--------------------------------------- | :---------------- | :---------------- | | Six Months Ended | 27.6% (expense) | 30.0% (benefit) | | Three Months Ended | 37.9% (expense) | 11.4% (benefit) | - The effective tax rate for the six and three months ended August 31, 2025, was higher than the federal statutory rate of **21%**, largely due to changes in valuation allowances, tax legislation updates, partially offset by benefits from prior tax examinations and lower foreign effective tax rates[89](index=89&type=chunk) - The OB3 Act, signed into law on **July 4, 2025**, is expected to have a negative impact on the **Fiscal 2026** effective tax rate, primarily due to changes in the limitation on interest expense deductibility[92](index=92&type=chunk)[93](index=93&type=chunk) - The company expects its reported effective tax rate for **Fiscal 2026** to be in the range of **17% to 19%**, inclusive of the OB3 Act and Pillar Two impacts[217](index=217&type=chunk) [13. Stockholders' Equity](index=26&type=section&id=13.%20Stockholders%27%20Equity) This note details changes in stockholders' equity, including share repurchase programs and dividends - In **April 2025**, the Board of Directors authorized a new **$4.0 billion** share repurchase program (2025 Authorization) expiring in **February 2028**[99](index=99&type=chunk)[246](index=246&type=chunk) Share Repurchases under 2025 Authorization (Six Months Ended August 31, 2025) | Item | Dollar Value of Shares Repurchased (millions) | Number of Shares Repurchased | | :--------------------------------------- | :---------------------------- | :--------------------------- | | Class A Stock | $604.0 | 3,375,602 | - As of **August 31, 2025**, **$3,396.0 million** remains available for future share repurchases under the 2025 Authorization[100](index=100&type=chunk)[246](index=246&type=chunk) [14. Net Income (Loss) Per Common Share Attributable to CBI](index=28&type=section&id=14.%20Net%20Income%20%28Loss%29%20Per%20Common%20Share%20Attributable%20to%20CBI) This note presents the calculation of basic and diluted net income (loss) per common share attributable to CBI Net Income (Loss) Per Common Share Attributable to CBI (in millions, except per share data) | Item | Six Months Ended Aug 31, 2025 | Six Months Ended Aug 31, 2024 | Three Months Ended Aug 31, 2025 | Three Months Ended Aug 31, 2024 | | :--------------------------------------- | :---------------------------- | :---------------------------- | :------------------------------ | :------------------------------ | | Net income (loss) attributable to CBI | $982.1 | $(322.0) | $466.0 | $(1,199.0) | | Weighted average common shares outstanding – diluted | 176.957 | 182.356 | 175.938 | 181.947 | | Net income (loss) per common share attributable to CBI – diluted | $5.55 | $(1.77) | $2.65 | $(6.59) | - Diluted EPS significantly improved from a loss of **$(1.77)** to a gain of **$5.55** for the six months ended August 31, 2025, reflecting the turnaround in net income[101](index=101&type=chunk) [15. Comprehensive Income (Loss) Attributable to CBI](index=28&type=section&id=15.%20Comprehensive%20Income%20%28Loss%29%20Attributable%20to%20CBI) This note provides a breakdown of comprehensive income (loss) and accumulated other comprehensive income (loss) Comprehensive Income (Loss) Attributable to CBI (in millions) | Period | August 31, 2025 | August 31, 2024 | | :--------------------------------------- | :---------------- | :---------------- | | Six Months Ended | $1,552.5 | $(1,125.8) | | Three Months Ended | $685.7 | $(1,993.8) | - The significant positive shift in comprehensive income for **2025** periods was largely driven by net income and positive foreign currency translation adjustments, contrasting with substantial losses in the prior year[102](index=102&type=chunk)[105](index=105&type=chunk) Accumulated Other Comprehensive Income (Loss), Net of Tax Effect (in millions) | Component | February 28, 2025 | August 31, 2025 | | :--------------------------------------- | :---------------- | :---------------- | | Foreign Currency Translation Adjustments | $(683.8) | $(275.5) | | Unrealized Net Gain (Loss) on Derivative Instruments | $21.8 | $185.1 | | Pension/Postretirement Adjustments | $(0.4) | $(0.5) | | Share of OCI of Equity Method Investments| $(0.3) | $(1.4) | | **Total Accumulated Other Comprehensive Income (Loss)** | **$(662.7)** | **$(92.3)** | [16. Business Segment Information](index=31&type=section&id=16.%20Business%20Segment%20Information) This note presents financial data disaggregated by the company's operating segments: Beer, Wine and Spirits, and Corporate Operations - The company reports operating results in three segments: **Beer**, **Wine and Spirits**, and **Corporate Operations and Other**[108](index=108&type=chunk)[130](index=130&type=chunk) Net Sales by Segment (Six Months Ended August 31, in millions) | Segment | 2026 | 2025 | Change ($) | Change (%) | | :--------------------------------------- | :-------- | :-------- | :--------- | :--------- | | Beer | $4,579.5 | $4,803.0 | $(223.5) | -4.6% | | Wine and Spirits | $416.5 | $777.7 | $(361.2) | -46.4% | | **Consolidated** | **$4,996.0**| **$5,580.7**| **$(584.7)** | **-10.5%** | Comparable Operating Income (Loss) by Segment (Six Months Ended August 31, in millions) | Segment | 2026 | 2025 | Change ($) | Change (%) | | :--------------------------------------- | :-------- | :-------- | :--------- | :--------- | | Beer | $1,825.0 | $2,000.7 | $(175.7) | -8.8% | | Wine and Spirits | $(25.8) | $130.2 | $(156.0) | -119.8% | | Corporate Operations and Other | $(103.1) | $(117.1) | $14.0 | 12.0% | | **Consolidated** | **$1,696.1**| **$2,013.8**| **$(317.7)** | **-15.8%** | - Beer segment net sales decreased due to shipment volume decline, partially offset by favorable pricing. Gross profit was impacted by increased cost of product sold, including tariffs on aluminum cans and unfavorable fixed cost absorption, but partially mitigated by efficiency initiatives[198](index=198&type=chunk)[202](index=202&type=chunk) - Wine and Spirits net sales and operating income significantly decreased due to the **2025 Wine Divestitures** and organic declines from unfavorable product mix, shipment volume, and lower contractual distributor payments[201](index=201&type=chunk)[204](index=204&type=chunk) [17. Accounting Guidance Not Yet Adopted](index=35&type=section&id=17.%20Accounting%20Guidance%20Not%20Yet%20Adopted) This note discusses new accounting standards issued by FASB that have not yet been adopted by the company - New FASB standards on income tax disclosures (effective **FY2026**) and disaggregation of income statement expenses (effective **FY2028**) are expected to impact disclosures but not materially affect financial condition, results of operations, or cash flows[119](index=119&type=chunk)[120](index=120&type=chunk) [Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations](index=36&type=section&id=Item%202.%20Management%27s%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) This section provides a detailed analysis of the company's business, strategy, financial condition, cash flows, and results of operations for the three and six months ended August 31, 2025, highlighting key performance drivers, comparable adjustments, and segment-specific trends [Introduction](index=36&type=section&id=Introduction) This introduction outlines the purpose and scope of the Management's Discussion and Analysis section - This MD&A provides additional information on the company's businesses, current developments, financial condition, cash flows, and results of operations, to be read in conjunction with the Financial Statements and **2025 Annual Report**[124](index=124&type=chunk) [Overview](index=36&type=section&id=Overview) This section provides a high-level summary of the company's business, market position, and strategic repositioning efforts - Constellation Brands is an international producer and marketer of beer, wine, and spirits, a **top growth contributor** in the U.S. beverage alcohol market, and the **1 dollar share gainer** in the high-end and overall U.S. beer market[128](index=128&type=chunk) - The company's wine and spirits business has been repositioned to a portfolio of exclusively **higher-end brands** to align with consumer-led premiumization trends, aiming for **higher growth and margins**[129](index=129&type=chunk) - A **$2,250.0 million goodwill impairment** was recorded in the Wine and Spirits segment for the Second Quarter and Six Months **2025** (prior year) due to negative trends in the U.S. wholesale market[131](index=131&type=chunk) [Strategy](index=37&type=section&id=Strategy) This section details the company's strategic vision, segment-specific objectives, and key initiatives like restructuring and divestitures - The strategic vision focuses on consumer-led decision making, talent development, infrastructure investment, and fiscal management to deliver **industry-leading total stockholder returns**[132](index=132&type=chunk)[133](index=133&type=chunk) - The Beer segment strategy aims to uphold leadership in the U.S. high-end beer market, increase distribution, optimize growth through differentiated brand positioning, and invest in modular capacity additions (Mexico Beer Projects)[135](index=135&type=chunk) - The Wine and Spirits segment strategy focuses on driving growth and improving margins beyond **Fiscal 2026** with higher-end brands, expanding into international markets, DTC channels, and 3-tier eCommerce[136](index=136&type=chunk) - The 2025 Restructuring Initiative is expected to yield **over $200 million** in net annualized cost savings by **Fiscal 2028**, with **$71.3 million** in cumulative pre-tax costs incurred since inception[142](index=142&type=chunk) - Significant divestitures include the **2025 Wine Divestitures** (**$846.5 million** proceeds) and SVEDKA Divestiture, while acquisitions include Sea Smoke (**$158.7 million**)[144](index=144&type=chunk)[145](index=145&type=chunk)[148](index=148&type=chunk) - The company recognized an **$83.3 million net gain** from Exchangeable Shares in Six Months **2025** (prior year) but subsequently impaired them to **$21.2 million** due to declining share price[152](index=152&type=chunk)[153](index=153&type=chunk) [Results of Operations](index=40&type=section&id=Results%20of%20Operations) This section analyzes the company's financial performance, including net sales, operating income, and net income trends [Financial Highlights](index=40&type=section&id=Financial%20Highlights) This section summarizes key financial performance metrics and their period-over-period changes - Net sales decreased **15%** for Q2 FY26 and **10%** for Six Months FY26, primarily due to the Wine and Spirits Divestitures and lower Beer net sales[156](index=156&type=chunk)[159](index=159&type=chunk) - Operating income increased **171%** for Q2 FY26 and **652%** for Six Months FY26, largely due to the absence of the prior year's Wine and Spirits goodwill impairment and successful efficiency initiatives in the Beer segment[157](index=157&type=chunk)[160](index=160&type=chunk) - Net income attributable to CBI and diluted EPS increased significantly (**139-414%**) for both periods, driven by the operating income improvements, partially offset by income tax provisions and prior year's gain on Exchangeable Shares[158](index=158&type=chunk)[161](index=161&type=chunk) [Comparable Adjustments](index=41&type=section&id=Comparable%20Adjustments) This section explains adjustments made to reported financial results to provide a clearer view of core operational performance - Comparable Adjustments are excluded from segment operating results to reflect core operations and evaluate segment management performance[162](index=162&type=chunk) Total Comparable Adjustments, Operating Income (Loss) (in millions) | Period | August 31, 2025 | August 31, 2024 | | :--------------------------------------- | :---------------- | :---------------- | | Six Months Ended | $(108.3) | $(2,301.6) | | Three Months Ended | $(12.2) | $(2,319.2) | - Key adjustments for Six Months FY26 included **$21.6 million** for the 2025 Restructuring Initiative, **$16.3 million loss on sale of business**, and **$52.1 million** for asset impairment and related expenses[163](index=163&type=chunk)[165](index=165&type=chunk) - The prior year's comparable adjustments were dominated by a **$2,250.0 million goodwill impairment**[163](index=163&type=chunk)[165](index=165&type=chunk) [Business Segments](index=43&type=section&id=Business%20Segments) This section provides a detailed analysis of the financial performance of each operating segment [Second Quarter 2026 compared to Second Quarter 2025](index=43&type=section&id=Second%20Quarter%202026%20compared%20to%20Second%20Quarter%202025) This section compares the financial results of the Beer and Wine and Spirits segments for the second quarter Net Sales by Segment (Three Months Ended August 31, in millions) | Segment | 2026 | 2025 | Change ($) | Change (%) | | :--------------------------------------- | :-------- | :-------- | :--------- | :--------- | | Beer | $2,345.0 | $2,530.2 | $(185.2) | -7% | | Wine and Spirits | $136.0 | $388.7 | $(252.7) | -65% | | **Consolidated** | **$2,481.0**| **$2,918.9**| **$(437.9)** | **-15%** | - Beer net sales decreased **7%** due to a **$219.3 million** decline in shipment volume, partially offset by **$40.6 million** from favorable pricing. Shipments trailed depletions as distributors rebalanced inventory[177](index=177&type=chunk) - Wine and Spirits net sales decreased **65%**, with **$220.5 million** from divestitures and a **$32.2 million** organic decrease driven by unfavorable product mix, shipment volume decline, and lower contractual distributor payments[179](index=179&type=chunk) - Consolidated gross profit margin increased to **52.8%** from **51.8%**, driven by comparable adjustments, divestitures of lower-margin brands, and Beer pricing, despite higher Beer cost of product sold (tariffs on aluminum cans, fixed cost absorption)[180](index=180&type=chunk)[184](index=184&type=chunk) - Consolidated operating income increased **$2,103.4 million** (**+171%**) to **$874.0 million**, primarily due to the absence of the prior year's goodwill impairment[190](index=190&type=chunk) [Six Months 2026 compared to Six Months 2025](index=47&type=section&id=Six%20Months%202026%20compared%20to%20Six%20Months%202025) This section compares the financial results of the Beer and Wine and Spirits segments for the six-month period Net Sales by Segment (Six Months Ended August 31, in millions) | Segment | 2026 | 2025 | Change ($) | Change (%) | | :--------------------------------------- | :-------- | :-------- | :--------- | :--------- | | Beer | $4,579.5 | $4,803.0 | $(223.5) | -5% | | Wine and Spirits | $416.5 | $777.7 | $(361.2) | -46% | | **Consolidated** | **$4,996.0**| **$5,580.7**| **$(584.7)** | **-10%** | - Beer net sales decreased **5%** due to a **$295.1 million** decline in shipment volume and **$14.0 million** unfavorable product mix, partially offset by **$85.6 million** from favorable pricing[198](index=198&type=chunk) - Wine and Spirits net sales decreased **46%**, with **$256.5 million** from divestitures and a **$104.7 million** organic decrease driven by shipment volume decline, unfavorable pricing, lower contractual distributor payments, and unfavorable product mix[201](index=201&type=chunk) - Consolidated gross profit margin decreased to **51.6%** from **52.2%**, primarily due to higher cost of product sold in both Beer (tariffs on aluminum cans, fixed cost absorption) and Wine & Spirits segments[202](index=202&type=chunk)[204](index=204&type=chunk)[205](index=205&type=chunk) - Consolidated operating income increased **$1,875.6 million** (**+652%**) to **$1,587.8 million**, primarily due to the absence of the prior year's goodwill impairment[211](index=211&type=chunk) [Liquidity and Capital Resources](index=51&type=section&id=Liquidity%20and%20Capital%20Resources) This section discusses the company's cash flow, debt levels, and strategies for managing liquidity and capital - Cash flow from operating activities is the primary source of liquidity, enabling investments, capital expenditures, dividends, and share repurchases[220](index=220&type=chunk) Net Cash Flow Summary (Six Months Ended August 31, in millions) | Activity | 2026 | 2025 | Change ($) | | :--------------------------------------- | :-------- | :-------- | :--------- | | Operating activities | $1,489.3 | $1,872.3 | $(383.0) | | Investing activities | $464.8 | $(857.6) | $1,322.4 | | Financing activities | $(1,953.1)| $(1,104.0)| $(849.1) | - Total debt outstanding decreased by **$952.8 million** to **$10,544.9 million** as of **August 31, 2025**, primarily due to senior note repayments using divestiture proceeds, partially offset by new debt issuance[229](index=229&type=chunk)[233](index=233&type=chunk)[234](index=234&type=chunk) - The company repurchased **$604.0 million** of Class A Stock under its **$4.0 billion 2025 Authorization**, with **$3,396.0 million** remaining available[246](index=246&type=chunk) - A quarterly cash dividend of **$1.02 per Class A share** and **$0.92 per Class 1 share** was declared on **September 30, 2025**[244](index=244&type=chunk) [Information Regarding Forward-Looking Statements](index=56&type=section&id=INFORMATION%20REGARDING%20FORWARD-LOOKING%20STATEMENTS) This section provides cautionary statements about forward-looking information and potential risks that could affect future results - This Form 10-Q contains forward-looking statements subject to numerous risks and uncertainties that could cause actual results to differ materially from expectations[249](index=249&type=chunk) - Forward-looking statements cover business strategy, growth plans, digital acceleration, capital expenditures, effective tax rates, consumer demand, socioeconomic factors, trade policies, share repurchase programs, and future dividends[251](index=251&type=chunk) - Key risks include declines in product consumption, dependence on Mexican beer brands, impacts of acquisitions/divestitures, competition, international operations uncertainties, supply chain disruptions, climate change, litigation, and changes to tax laws[254](index=254&type=chunk) [Item 3. Quantitative and Qualitative Disclosures About Market Risk](index=58&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) This section describes the company's exposure to market risks, including foreign currency, commodity, and interest rate fluctuations - The company is exposed to market risks from foreign currency exchange rates, commodity prices, and interest rates, which are managed through derivative instruments for hedging purposes[255](index=255&type=chunk) - As of **August 31, 2025**, **83%** of forecasted transactional foreign currency exposures and approximately **82%** of forecasted transactional commodity exposures for the remaining six months of **Fiscal 2026** were hedged[256](index=256&type=chunk)[257](index=257&type=chunk) Sensitivity Analysis (Hypothetical Adverse Change, in millions) | Risk Category | 10% Adverse Change (Fair Value Impact) | 1% Rate Increase (Fair Value/Expense Impact) | | :--------------------------------------- | :------------------------------------- | :------------------------------------------- | | Foreign currency contracts | $(192.2) | N/A | | Commodity derivative contracts | $29.1 | N/A | | Fixed interest rate debt | N/A | $(510.1) (Fair Value) | | Variable interest rate debt | N/A | $2.0 (Interest Expense, Six Months) | [Item 4. Controls and Procedures](index=59&type=section&id=Item%204.%20Controls%20and%20Procedures) This section reports on the effectiveness of the company's disclosure controls and internal control over financial reporting - The Chief Executive Officer and Chief Financial Officer concluded that the company's disclosure controls and procedures were **effective** as of **August 31, 2025**[263](index=263&type=chunk) - No changes were identified in the company's internal control over financial reporting during the quarter ended August 31, 2025, that have materially affected or are reasonably likely to materially affect it[264](index=264&type=chunk) [Part II – Other Information](index=60&type=section&id=PART%20II%20%E2%80%93%20OTHER%20INFORMATION) This part includes disclosures on legal proceedings, equity security sales, and other relevant information not covered in Part I [Item 1. Legal Proceedings](index=60&type=section&id=Item%201.%20Legal%20Proceedings) The company is involved in a putative class action lawsuit (Meza v. Constellation Brands, Inc., et al.) alleging securities law violations related to statements about its beer business. Additionally, several derivative complaints with similar allegations were filed, some of which have been consolidated or dismissed - A putative class action, Meza v. Constellation Brands, Inc., et al., was filed on **February 18, 2025**, alleging violations of Sections **10(b)** and **20(a)** of the Exchange Act concerning allegedly false or misleading statements about the company's beer business prospects. A motion to dismiss is pending[267](index=267&type=chunk) - Derivative complaints (Silva v. Newlands, et al., Mason v. Newlands, et al., Wasserman v. Baldwin, et al.) with similar allegations were filed against current and former directors and officers. The Silva and Mason litigations were consolidated and stayed, while the Wasserman litigation was voluntarily dismissed[268](index=268&type=chunk) [Item 2. Unregistered Sales of Equity Securities and Use of Proceeds](index=61&type=section&id=Item%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) The company repurchased 1,740,884 shares of Class A Stock for an aggregate cost of $297.9 million during the three months ended August 31, 2025, under its $4.0 billion 2025 Authorization Issuer Purchases of Equity Securities (Three Months Ended August 31, 2025) | Period | Total Number of Shares Purchased | Average Price Paid Per Share | Approximate Dollar Value of Shares that May Yet Be Purchased Under the Program (millions) | | :--------------------------------------- | :----------------------------- | :--------------------------- | :------------------------------------------------------------------------------------ | | June 1 – 30, 2025 | 431,578 | $173.78 | $3,618.9 | | July 1 – 31, 2025 | 931,314 | $170.68 | $3,460.0 | | August 1 – 31, 2025 | 377,992 | $169.31 | $3,396.0 | | **Total** | **1,740,884** | **$171.15** | **N/A** | - As of **August 31, 2025**, **$3,396.0 million** remains available for future share repurchases under the 2025 Authorization[271](index=271&type=chunk) [Item 5. Other Information](index=61&type=section&id=Item%205.%20Other%20Information) No directors or officers adopted or terminated Rule 10b5-1 trading arrangements during the three months ended August 31, 2025 - None of the company's directors or officers adopted or terminated a Rule 10b5-1 trading arrangement or non-Rule 10b5-1 trading arrangement during the three months ended August 31, 2025[272](index=272&type=chunk) [Item 6. Exhibits](index=61&type=section&id=Item%206.%20Exhibits) This section lists all exhibits filed with the Form 10-Q, including organizational documents, indentures for senior notes, credit agreements, equity compensation plans, and certifications [Signatures](index=65&type=section&id=SIGNATURES) This section contains the official signatures of the company's authorized officers, certifying the accuracy of the report - The report was signed on **October 7, 2025**, by Kenneth W. Metz, Senior Vice President, Controller and Corporate Finance, and Garth Hankinson, Executive Vice President and Chief Financial Officer[281](index=281&type=chunk)