Name: Constellation Brands Inc. (NYSE:STZ) | Liabilities and Stockholders’ Equity
Creator: Stock Analysis on Net

Balance Sheet: Liabilities and Stockholders’ Equity

The balance sheet provides creditors, investors, and analysts with information on company resources (assets) and its sources of capital (its equity and liabilities). It normally also provides information about the future earnings capacity of a company assets as well as an indication of cash flows that may come from receivables and inventories.

Liabilities represents obligations of a company arising from past events, the settlement of which is expected to result in an outflow of economic benefits from the entity.

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Constellation Brands Inc., consolidated balance sheet: liabilities and stockholders’ equity

US$ in thousands

	Feb 28, 2022	Feb 28, 2021	Feb 29, 2020	Feb 28, 2019	Feb 28, 2018	Feb 28, 2017
Short-term borrowings	323,000)	—)	238,900)	791,500)	746,800)	606,500)
Current maturities of long-term debt	605,300)	29,200)	734,900)	1,065,200)	22,300)	910,900)
Accounts payable	899,200)	460,000)	557,600)	616,700)	592,200)	559,800)
Salaries, commissions, and payroll benefits and withholdings	256,300)	232,100)	182,200)	163,100)	149,000)	148,500)
Promotions and advertising	172,300)	159,900)	191,700)	181,200)	114,100)	116,900)
Accrued interest	85,100)	93,400)	94,300)	107,300)	86,700)	87,500)
Current operating lease liability	80,400)	68,800)	76,600)	—)	—)	—)
Accrued excise taxes	44,600)	19,900)	—)	—)	—)	—)
Deferred revenue	32,000)	16,300)	—)	—)	—)	—)
Income taxes payable	21,500)	24,700)	24,900)	24,500)	48,500)	60,200)
Other	179,100)	164,800)	210,700)	214,300)	185,100)	207,300)
Other accrued expenses and liabilities	871,300)	779,900)	780,400)	690,400)	583,400)	620,400)
Current liabilities	2,698,800)	1,269,100)	2,311,800)	3,163,800)	1,944,700)	2,697,600)
Long-term debt, less current maturities	9,488,200)	10,413,100)	11,210,800)	11,759,800)	9,417,600)	7,720,700)
Deferred income taxes	515,800)	569,700)	384,000)	1,029,700)	718,300)	1,133,600)
Noncurrent operating lease liability	457,300)	471,100)	483,600)	—)	—)	—)
Unrecognized tax benefit liabilities	317,700)	268,900)	276,200)	239,000)	93,700)	—)
Deferred revenue	104,100)	1,500)	—)	—)	—)	—)
Long-term income tax payable	76,000)	86,100)	96,200)	95,400)	165,600)	—)
Other	150,100)	96,200)	86,300)	106,600)	136,100)	165,700)
Deferred income taxes and other liabilities	1,621,000)	1,493,500)	1,326,300)	1,470,700)	1,113,700)	1,299,300)
Noncurrent liabilities	11,109,200)	11,906,600)	12,537,100)	13,230,500)	10,531,300)	9,020,000)
Total liabilities	13,808,000)	13,175,700)	14,848,900)	16,394,300)	12,476,000)	11,717,600)
Preferred Stock, $0.01 par value; Issued, none	—)	—)	—)	—)	—)	—)
Class A Stock, $0.01 par value	1,900)	1,900)	1,900)	1,900)	2,600)	2,600)
Class B Stock, $0.01 par value	300)	300)	300)	300)	300)	300)
Class 1 Stock, $0.01 par value	—)	—)	—)	—)	—)	—)
Additional paid-in capital	1,808,900)	1,604,200)	1,514,600)	1,410,800)	2,825,300)	2,755,800)
Retained earnings	14,505,400)	15,117,800)	13,695,300)	14,276,200)	9,228,200)	7,310,000)
Accumulated other comprehensive loss	(412,700)	(335,500)	(266,300)	(353,900)	(202,900)	(399,800)
Treasury stock	(4,171,900)	(2,789,800)	(2,814,000)	(2,784,300)	(3,807,400)	(2,777,700)
Total CBI stockholders’ equity	11,731,900)	13,598,900)	12,131,800)	12,551,000)	8,046,100)	6,891,200)
Noncontrolling interests	315,900)	330,200)	342,500)	286,200)	16,600)	(6,400)
Total stockholders’ equity	12,047,800)	13,929,100)	12,474,300)	12,837,200)	8,062,700)	6,884,800)
Total liabilities and stockholders’ equity	25,855,800)	27,104,800)	27,323,200)	29,231,500)	20,538,700)	18,602,400)

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).

The balance sheet reflects a period of significant fluctuation in total liabilities and a general strengthening of stockholders' equity from 2017 through 2021, followed by a contraction in 2022. Total liabilities peaked in February 2019 at approximately 16.39 billion US dollars before trending downward to 13.81 billion US dollars by February 2022. Concurrently, total stockholders' equity grew from 6.88 billion US dollars in 2017 to a peak of 13.93 billion US dollars in 2021, indicating a substantial increase in the company's net asset base over that five-year period.

Current Liabilities and Short-Term Obligations: Current liabilities exhibit high volatility, reaching a maximum of 3.16 billion US dollars in 2019 and a minimum of 1.27 billion US dollars in 2021. This volatility is largely driven by fluctuations in short-term borrowings and the current maturities of long-term debt. Current maturities of long-term debt saw a sharp increase in 2019 to 1.07 billion US dollars, followed by a significant drop to 29.2 million US dollars in 2021, before rising again to 605.3 million US dollars in 2022. Accounts payable showed a steady increase toward the end of the period, peaking at 899.2 million US dollars in 2022.
Long-Term Debt and Noncurrent Liabilities: Noncurrent liabilities were dominated by long-term debt, which peaked in 2019 at 11.76 billion US dollars (net of current maturities). Since that peak, a consistent deleveraging trend is observed, with long-term debt decreasing to 9.49 billion US dollars by February 2022. The introduction of noncurrent operating lease liabilities in 2020, totaling 483.6 million US dollars, suggests a change in accounting standards or leasing strategies. Deferred income taxes and other liabilities remained relatively stable, fluctuating between 1.11 billion and 1.62 billion US dollars.
Stockholders' Equity and Capital Allocation: The growth in total stockholders' equity was primarily fueled by a substantial increase in retained earnings, which rose from 7.31 billion US dollars in 2017 to a peak of 15.12 billion US dollars in 2021. This suggests strong cumulative profitability. However, this growth was partially offset by an aggressive treasury stock program. Treasury stock holdings increased from 2.78 billion US dollars in 2019 to 4.17 billion US dollars in 2022, indicating significant capital returns to shareholders through share repurchases. The dip in total equity to 12.05 billion US dollars in 2022 is attributable to the combined effect of increased treasury stock and a decrease in retained earnings.
Overall Solvency and Financial Position: The relationship between total liabilities and total stockholders' equity shifted toward a more equity-heavy structure between 2017 and 2021. While the 2019 fiscal year represented a period of peak leverage, the subsequent years showed a reduction in total debt and an expansion of the equity base. By 2022, the balance sheet stabilized with total liabilities and stockholders' equity totaling 25.86 billion US dollars, reflecting a more conservative capital structure than was present during the 2019 peak.

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