Constellation Brands (STZ) 10-Q 2018 Q2 Quarterly report

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, 2017			August 31, 2016			February28, 2017			February29, 2016			February28, 2015			February28, 2014			February28, 2013
Earnings:
Income before income taxes	$	1,110.1		$	985.6		$	2,093.4		$	1,501.2		$	1,179.6		$	2,202.3		$	516.4
Plus fixed charges	175.1			187.8			356.7			332.3			352.3			337.5			239.4
Less interest capitalized	(8.6		)	(5.6		)	(16.6		)	(12.7		)	(8.2		)	(0.9		)	—
Earnings, as adjusted	$	1,276.6		$	1,167.8		$	2,433.5		$	1,820.8		$	1,523.7		$	2,538.9		$	755.8
Fixed Charges:
Interest on debt and capitalized leases, amortization of debt issuance costs, and amortization of discount on debt (b)	$	172.8		$	185.4		$	352.0		$	327.8		$	347.7		$	332.2		$	234.3
Interest element of rentals	2.3			2.4			4.7			4.5			4.7			5.3			5.1
Total fixed charges	$	175.1		$	187.8		$	356.7		$	332.3		$	352.4		$	337.5		$	239.4
Ratio of Earnings to Fixed Charges	7.3x			6.2x			6.8x			5.5x			4.3x			7.5x			3.2x

^(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.