An operating lease is treated like a rental contract. Neither the leased asset nor the associated liability is reported on the lessee balance sheet, but the rights may be very similar to the rights of an owner. The lessee only records the lease payments as a rental expense in income statement.

Present Value of Future Operating Lease Payments (before Adoption of FASB Topic 842)
Adjustments to Financial Statements for Operating Leases
Adjusted Financial Ratios for Operating Leases (Summary)
Adjusted Total Asset Turnover
Adjusted Debt to Equity
Adjusted Return on Assets (ROA)

Constellation Brands Inc., future operating lease payments (before adoption of FASB Topic 842)

US$ in thousands

	Feb 28, 2022	Feb 28, 2021	Feb 29, 2020	Feb 28, 2019	Feb 28, 2018	Feb 28, 2017
Total undiscounted future operating lease payments	—	—	—	559,500)	559,200)	497,700)
Discount rate¹	—	—	—	3.67%	3.43%	3.63%

Total present value of future operating lease payments	—	—	—	450,424)	452,267)	395,311)

Based on: 10-K (reporting date: 2022-02-28), 10-K (reporting date: 2021-02-28), 10-K (reporting date: 2020-02-29), 10-K (reporting date: 2019-02-28), 10-K (reporting date: 2018-02-28), 10-K (reporting date: 2017-02-28).

¹ Weighted-average interest rate for Constellation Brands Inc. debt

2019 Calculations

Year	Future operating lease payments (as reported)	Year	Future operating lease payments (estimated)	Present value at 3.67%
2020	59,000)	2020	59,000)	56,911)
2021	58,200)	2021	58,200)	54,152)
2022	51,100)	2022	51,100)	45,863)
2023	47,900)	2023	47,900)	41,469)
2024	41,200)	2024	41,200)	34,406)
2025 and thereafter	302,100)	2025	41,200)	33,188)
		2026	41,200)	32,013)
		2027	41,200)	30,880)
		2028	41,200)	29,786)
		2029	41,200)	28,732)
		2030	41,200)	27,715)
		2031	41,200)	26,734)
		2032	13,700)	8,575)
Total:	559,500)		559,500)	450,424)

Based on: 10-K (reporting date: 2019-02-28).

2018 Calculations

Year	Future operating lease payments (as reported)	Year	Future operating lease payments (estimated)	Present value at 3.43%
2019	53,600)	2019	53,600)	51,822)
2020	53,700)	2020	53,700)	50,197)
2021	50,300)	2021	50,300)	45,460)
2022	44,000)	2022	44,000)	38,447)
2023	41,300)	2023	41,300)	34,891)
2024 and thereafter	316,300)	2024	41,300)	33,734)
		2025	41,300)	32,616)
		2026	41,300)	31,534)
		2027	41,300)	30,488)
		2028	41,300)	29,477)
		2029	41,300)	28,500)
		2030	41,300)	27,554)
		2031	27,200)	17,545)
Total:	559,200)		559,200)	452,267)

Based on: 10-K (reporting date: 2018-02-28).

2017 Calculations

Year	Future operating lease payments (as reported)	Year	Future operating lease payments (estimated)	Present value at 3.63%
2018	41,600)	2018	41,600)	40,143)
2019	46,800)	2019	46,800)	43,579)
2020	45,200)	2020	45,200)	40,615)
2021	43,200)	2021	43,200)	37,458)
2022	35,400)	2022	35,400)	29,619)
2023 and thereafter	285,500)	2023	35,400)	28,582)
		2024	35,400)	27,581)
		2025	35,400)	26,615)
		2026	35,400)	25,682)
		2027	35,400)	24,783)
		2028	35,400)	23,915)
		2029	35,400)	23,077)
		2030	35,400)	22,269)
		2031	2,300)	1,396)
Total:	497,700)		497,700)	395,311)

Based on: 10-K (reporting date: 2017-02-28).

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Constellation Brands Inc., adjustments to financial statements

US$ in thousands

	Feb 28, 2022	Feb 28, 2021	Feb 29, 2020	Feb 28, 2019	Feb 28, 2018	Feb 28, 2017
Adjustment to Total Assets
Total assets (as reported)	25,855,800)	27,104,800)	27,323,200)	29,231,500)	20,538,700)	18,602,400)
Add: Operating lease right-of-use asset (before adoption of FASB Topic 842)¹	—)	—)	—)	450,424)	452,267)	395,311)
Total assets (adjusted)	25,855,800)	27,104,800)	27,323,200)	29,681,924)	20,990,967)	18,997,711)
Adjustment to Total Debt
Total debt (as reported)	10,416,500)	10,442,300)	12,184,600)	13,616,500)	10,186,700)	9,238,100)
Add: Operating lease liability (before adoption of FASB Topic 842)²	—)	—)	—)	450,424)	452,267)	395,311)
Add: Current operating lease liability	80,400)	68,800)	76,600)	—)	—)	—)
Add: Noncurrent operating lease liability	457,300)	471,100)	483,600)	—)	—)	—)
Total debt (adjusted)	10,954,200)	10,982,200)	12,744,800)	14,066,924)	10,638,967)	9,633,411)

Based on: 10-K (reporting date: 2022-02-28), 10-K (reporting date: 2021-02-28), 10-K (reporting date: 2020-02-29), 10-K (reporting date: 2019-02-28), 10-K (reporting date: 2018-02-28), 10-K (reporting date: 2017-02-28).

^{1, 2} Equal to total present value of future operating lease payments.

Constellation Brands Inc., Financial Data: Reported vs. Adjusted

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Constellation Brands Inc., adjusted financial ratios

	Feb 28, 2022	Feb 28, 2021	Feb 29, 2020	Feb 28, 2019	Feb 28, 2018	Feb 28, 2017
Total Asset Turnover¹
Reported total asset turnover	0.34	0.32	0.31	0.28	0.37	0.39
Adjusted total asset turnover	0.34	0.32	0.31	0.27	0.36	0.39
Debt to Equity²
Reported debt to equity	0.89	0.77	1.00	1.08	1.27	1.34
Adjusted debt to equity	0.93	0.81	1.05	1.12	1.32	1.40
Return on Assets³ (ROA)
Reported ROA	-0.16%	7.37%	-0.04%	11.75%	11.29%	8.25%
Adjusted ROA	-0.16%	7.37%	-0.04%	11.58%	11.05%	8.08%

Based on: 10-K (reporting date: 2022-02-28), 10-K (reporting date: 2021-02-28), 10-K (reporting date: 2020-02-29), 10-K (reporting date: 2019-02-28), 10-K (reporting date: 2018-02-28), 10-K (reporting date: 2017-02-28).

¹ See details »

² See details »

³ See details »

Financial ratio	Description	The company
Adjusted total asset turnover	An activity ratio calculated as total revenue divided by adjusted total assets.	Constellation Brands Inc. adjusted total asset turnover ratio improved from 2020 to 2021 and from 2021 to 2022.
Adjusted debt to equity	A solvency ratio calculated as adjusted total debt divided by total shareholders’ equity.	Constellation Brands Inc. adjusted debt to equity ratio improved from 2020 to 2021 but then slightly deteriorated from 2021 to 2022 not reaching 2020 level.
Adjusted ROA	A profitability ratio calculated as net income divided by adjusted total assets.	Constellation Brands Inc. adjusted ROA improved from 2020 to 2021 but then deteriorated significantly from 2021 to 2022.

Constellation Brands Inc., Financial Ratios: Reported vs. Adjusted

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	Feb 28, 2022	Feb 28, 2021	Feb 29, 2020	Feb 28, 2019	Feb 28, 2018	Feb 28, 2017
As Reported
Selected Financial Data (US$ in thousands)
Net sales	8,820,700)	8,614,900)	8,343,500)	8,116,000)	7,585,000)	7,331,500)
Total assets	25,855,800)	27,104,800)	27,323,200)	29,231,500)	20,538,700)	18,602,400)
Activity Ratio
Total asset turnover¹	0.34	0.32	0.31	0.28	0.37	0.39
Adjusted for Operating Leases
Selected Financial Data (US$ in thousands)
Net sales	8,820,700)	8,614,900)	8,343,500)	8,116,000)	7,585,000)	7,331,500)
Adjusted total assets	25,855,800)	27,104,800)	27,323,200)	29,681,924)	20,990,967)	18,997,711)
Activity Ratio
Adjusted total asset turnover²	0.34	0.32	0.31	0.27	0.36	0.39

Based on: 10-K (reporting date: 2022-02-28), 10-K (reporting date: 2021-02-28), 10-K (reporting date: 2020-02-29), 10-K (reporting date: 2019-02-28), 10-K (reporting date: 2018-02-28), 10-K (reporting date: 2017-02-28).

2022 Calculations

¹ Total asset turnover = Net sales ÷ Total assets
= 8,820,700 ÷ 25,855,800 = 0.34

² Adjusted total asset turnover = Net sales ÷ Adjusted total assets
= 8,820,700 ÷ 25,855,800 = 0.34

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Activity ratio	Description	The company
Adjusted total asset turnover	An activity ratio calculated as total revenue divided by adjusted total assets.	Constellation Brands Inc. adjusted total asset turnover ratio improved from 2020 to 2021 and from 2021 to 2022.

	Feb 28, 2022	Feb 28, 2021	Feb 29, 2020	Feb 28, 2019	Feb 28, 2018	Feb 28, 2017
As Reported
Selected Financial Data (US$ in thousands)
Total debt	10,416,500)	10,442,300)	12,184,600)	13,616,500)	10,186,700)	9,238,100)
Total CBI stockholders’ equity	11,731,900)	13,598,900)	12,131,800)	12,551,000)	8,046,100)	6,891,200)
Solvency Ratio
Debt to equity¹	0.89	0.77	1.00	1.08	1.27	1.34
Adjusted for Operating Leases
Selected Financial Data (US$ in thousands)
Adjusted total debt	10,954,200)	10,982,200)	12,744,800)	14,066,924)	10,638,967)	9,633,411)
Total CBI stockholders’ equity	11,731,900)	13,598,900)	12,131,800)	12,551,000)	8,046,100)	6,891,200)
Solvency Ratio
Adjusted debt to equity²	0.93	0.81	1.05	1.12	1.32	1.40

Based on: 10-K (reporting date: 2022-02-28), 10-K (reporting date: 2021-02-28), 10-K (reporting date: 2020-02-29), 10-K (reporting date: 2019-02-28), 10-K (reporting date: 2018-02-28), 10-K (reporting date: 2017-02-28).

2022 Calculations

¹ Debt to equity = Total debt ÷ Total CBI stockholders’ equity
= 10,416,500 ÷ 11,731,900 = 0.89

² Adjusted debt to equity = Adjusted total debt ÷ Total CBI stockholders’ equity
= 10,954,200 ÷ 11,731,900 = 0.93

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Solvency ratio	Description	The company
Adjusted debt-to-equity	A solvency ratio calculated as adjusted total debt divided by total shareholders’ equity.	Constellation Brands Inc. adjusted debt-to-equity ratio improved from 2020 to 2021 but then slightly deteriorated from 2021 to 2022 not reaching 2020 level.

	Feb 28, 2022	Feb 28, 2021	Feb 29, 2020	Feb 28, 2019	Feb 28, 2018	Feb 28, 2017
As Reported
Selected Financial Data (US$ in thousands)
Net income (loss) attributable to CBI	(40,400)	1,998,000)	(11,800)	3,435,900)	2,318,900)	1,535,100)
Total assets	25,855,800)	27,104,800)	27,323,200)	29,231,500)	20,538,700)	18,602,400)
Profitability Ratio
ROA¹	-0.16%	7.37%	-0.04%	11.75%	11.29%	8.25%
Adjusted for Operating Leases
Selected Financial Data (US$ in thousands)
Net income (loss) attributable to CBI	(40,400)	1,998,000)	(11,800)	3,435,900)	2,318,900)	1,535,100)
Adjusted total assets	25,855,800)	27,104,800)	27,323,200)	29,681,924)	20,990,967)	18,997,711)
Profitability Ratio
Adjusted ROA²	-0.16%	7.37%	-0.04%	11.58%	11.05%	8.08%

Based on: 10-K (reporting date: 2022-02-28), 10-K (reporting date: 2021-02-28), 10-K (reporting date: 2020-02-29), 10-K (reporting date: 2019-02-28), 10-K (reporting date: 2018-02-28), 10-K (reporting date: 2017-02-28).

2022 Calculations

¹ ROA = 100 × Net income (loss) attributable to CBI ÷ Total assets
= 100 × -40,400 ÷ 25,855,800 = -0.16%

² Adjusted ROA = 100 × Net income (loss) attributable to CBI ÷ Adjusted total assets
= 100 × -40,400 ÷ 25,855,800 = -0.16%

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Profitability ratio	Description	The company
Adjusted ROA	A profitability ratio calculated as net income divided by adjusted total assets.	Constellation Brands Inc. adjusted ROA improved from 2020 to 2021 but then deteriorated significantly from 2021 to 2022.

Constellation Brands Inc. (NYSE:STZ)

Analysis of Operating Leases

Present Value of Future Operating Lease Payments (before Adoption of FASB Topic 842)

Adjustments to Financial Statements for Operating Leases

Constellation Brands Inc., Financial Data: Reported vs. Adjusted

Adjusted Financial Ratios for Operating Leases (Summary)

Constellation Brands Inc., Financial Ratios: Reported vs. Adjusted

Adjusted Total Asset Turnover

Adjusted Debt to Equity

Adjusted Return on Assets (ROA)