Financial Analysis

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 affili …

DebtDisclosureTextBlock · excerpt; the full note is in the filing

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. 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 s …

DisclosureOfCompensationRelatedCostsShareBasedPaymentsTextBlock · excerpt; the full note is in the filing

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 …

FairValueDisclosuresTextBlock · excerpt; the full note is in the filing

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 …

IncomeTaxDisclosureTextBlock · excerpt; the full note is in the filing

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 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 f …

LesseeOperatingLeasesTextBlock · excerpt; the full note is in the filing

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.

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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%). 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 T …

RestructuringAndRelatedActivitiesDisclosureTextBlock · excerpt; the full note is in the filing

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 th e Beer se gment, 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 CODMs 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 ar …

SegmentReportingDisclosureTextBlock · excerpt; the full note is in the filing

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 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 …

StockholdersEquityNoteDisclosureTextBlock · excerpt; the full note is in the filing

BORROWINGS Borrowings consist of the following: May 31, 2026 February 28, 2026 Current Long-term Total Total (in millions) Short-term borrowings Commercial paper $ 336.3 $ 272.0 $ 336.3 $ 272.0 Long-term debt Senior notes $ 1,098.8 $ 9,086.4 $ 10,185.2 $ 10,285.3 Other 3.8 8.5 12.3 11.2 $ 1,102.6 $ 9,094.9 $ 10,197.5 $ 10,296.5 2025 Credit Agreement The Company, CB International, the Administrative Agent, and certain other lenders are parties to the 2025 Credit Agreement. Information with respect to borrowings under the 2025 Credit Agreement is as follows: Outstanding borrowings Interest rate SOFR margin Outstanding letters of credit Remaining borrowing capacity (1) (in millions) May 31, 2026 Revolving credit facility (2) (3) $ % % $ 10.9 $ 1,902.6 February 28, 2026 Revolving credit facility (2) (3) $ % % $ 11.3 $ 1,966.6 (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 $336.5 million and $272.1 million (excluding unamortized discount) as of May 31, 2026, and February 28, 2026, respectively (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 …

DebtDisclosureTextBlock · excerpt; the full note is in the filing

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 …

FairValueDisclosuresTextBlock · excerpt; the full note is in the filing

INCOME TAXES Overview Our effective tax rate for the three months ended May 31, 2026, and May 31, 2025, was 11.6% and 14.3%, respectively. For the three months ended May 31, 2026, our effective tax rate was lower than the federal statutory rate of 21% largely due to the benefit of lower effective tax rates applicable to our foreign businesses, partially offset by (i) certain tax legislation updates, (ii) adjustments to tax attributes, and (iii) changes to valuation allowances. For the three months ended May 31, 2025, our effective tax rate was lower than the federal statutory rate of 21% largely due to (i) the benefit of lower effective tax rates applicable to our foreign businesses and (ii) a net income tax benefit recognized as a result of the resolution of various tax examinations and assessments related to prior periods. 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 …

IncomeTaxDisclosureTextBlock · excerpt; the full note is in the filing

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. The 2025 Restructuring Initiative is estimated to result in $130 million of cumulative pre-tax costs once all phases are fully implemented. These 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%). 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 Three Months Ended May 31, 2026 2025 (in millions) Consulting services $ 0.5 $ 13.3 Other 0.1 $ 0.6 $ 13.3 Since the inception of the 2025 Restructuring Initiative, we have incurred the following pre-tax restructuring costs: Cumulative Costs as of May 31, 2026 Percent of Total Costs (in millions) Employee termination $ 62.0 51 % Consulting services 56.0 46 % Other 4.5 3 % $ 122.5 100 % 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 2 …

RestructuringAndRelatedActivitiesDisclosureTextBlock · excerpt; the full note is in the filing

BUSINESS SEGMENT INFORMATION O ur 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 CODMs 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 …

SegmentReportingDisclosureTextBlock · excerpt; the full note is in the filing

STOCKHOLDERS EQUITY Common 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, 2026 212,699,542 25,923 39,927,096 Share repurchases 1,465,295 Exercise of stock options (24,772) Vesting of restricted stock units (1) (122,930) Vesting of performance share units (1) (12,043) Balance at May 31, 2026 212,699,542 25,923 41,232,646 Balance at February 28, 2025 212,698,298 27,037 34,505,141 Share repurchases 1,634,718 Exercise of stock options 130 (38,775) Vesting of restricted stock units (1) (98,959) Balance at May 31, 2025 212,698,298 27,167 36,002,125 (1) Net of the following shares withheld to satisfy tax withholding requirements: For the Three Months Ended May 31, 2026 Restricted Stock Units 60,594 Performance Share Units 5,992 2025 Restricted Stock Units 50,720 Stock repurchases 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. Shares repurchased under this authorization become treasury shares. For the three months ended May 31, 2026, we repurchased 1,465,295 shares of Class A Stock pursuant to the 2025 Authorization through open market transactions at an aggregate cost of $223.8 million. Subsequent to May 31, 2026, we repurchased 714,387 shares of Class A Stock pursuant to the 2025 Authorization at an ag …

StockholdersEquityNoteDisclosureTextBlock · excerpt; the full note is in the filing