Exhibit 12
CONSTELLATION BRANDS, INC. AND SUBSIDIARIES
STATEMENT OF COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES AND EARNINGS
TO COMBINED FIXED CHARGES AND PREFERRED STOCK DIVIDENDS
(in millions of dollars)
For the Fiscal Years Ended
For the Six For the Six February 28, For the Fiscal For the Fiscal
Months Ended Months Ended ----------------------------- Year Ended Year Ended
August 31, 2003 August 31, 2002 2003 2002 2001 February 29, 2000 February 28, 1999
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Earnings: (a)
Income before provision
for income taxes $ 116.8 $ 143.3 $ 334.9 $ 230.0 $ 162.2 $ 129.0 $ 104.4
Add fixed charges 96.3 57.4 112.8 122.9 116.2 114.0 46.5
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Earnings, as adjusted $ 213.1 $ 200.7 $ 447.7 $ 352.8 $ 278.4 $ 243.0 $ 150.9
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Fixed Charges:
Interest on debt and
capitalized leases $ 82.5 $ 54.6 $ 107.0 $ 116.4 $ 111.0 $ 110.0 $ 43.5
Amortization of direct
financing costs 12.4 1.8 3.7 4.1 3.1 2.2 1.9
Amortization of
discount on debt -- -- -- 0.5 0.5 0.4 0.4
Interest element of 1.4 1.0 2.1 1.9 1.6 1.4 0.7
rentals
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Total fixed charges 96.3 57.4 112.8 122.9 116.2 114.0 46.5
Preferred stock dividends,
adjusted to a pre-tax 1.3 -- -- -- -- -- --
equivalent basis
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Combined fixed charges and
preferred stock dividends $ 97.6 $ 57.4 $ 112.8 $ 122.9 $ 116.2 $ 114.0 $ 46.5
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Ratio of Earnings to Fixed
Charges 2.2x 3.5x 4.0x 2.9x 2.4x 2.1x 3.2x
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Ratio of Earnings to
Combined Fixed Charges and
Preferred Stock Dividend 2.2x 3.5x 4.0x 2.9x 2.4x 2.1x 3.2x
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(a) For the purpose of calculating the ratio of earnings to fixed charges, "earnings" represent income before provision for
income taxes plus fixed charges. "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. "Preferred stock dividends" consist of income before taxes that is required to pay the dividends on our
outstanding Series A mandatory convertible preferred stock.