Restructuring and Other Charges

9 Months Ended

Jan. 31, 2025

Restructuring and Related Activities [Abstract]

Restructuring and Other Charges

Restructuring and Other Charges

On January 13, 2025, our Board of Directors approved a plan to reduce our structural cost base and realign resources toward future sources of growth (the Plan). In connection with the Plan, we expect to reduce our worldwide headcount by approximately 12% and to close our Louisville-based Brown-Forman Cooperage. We expect the Plan to be substantially implemented in fiscal 2025 with the remainder to be completed by the end of fiscal 2026.

In connection with the Plan, we expect to incur aggregate charges of approximately $60 to $70 million, consisting primarily of approximately $27 to $32 million in severance and other employee-related costs and approximately $33 to $38 million in other restructuring costs, including costs related to the Louisville-based cooperage facility closure. Through January 31, 2025, we have incurred $27 million in restructuring charges and $2 million in other charges associated with the Plan. We also incurred $4 million in other charges associated with a special, one-time early retirement benefit. As of January 31, 2025, $8 million of the charges to be settled in cash have been paid.

Detail on the total restructuring and other charges is provided below:

	Three Months Ended				Nine Months Ended
	January 31,				January 31,
(Dollars in millions)	2024		2025		2024		2025
Restructuring charges:
Severance and other employee-related costs	$	—	$	19	$	—	$	19
Other restructuring charges1	—		6		—		8
Restructuring charges	—		25		—		27
Other charges2	—		6		—		6
Total restructuring and other charges	$	—	$	31	$	—	$	33

1Primarily represents one-time costs related to the cooperage facility closure and other miscellaneous exit costs.

2Represents $4 million in costs associated with a special, one-time early retirement benefit to qualifying U.S. employees and $2 million in impairment charges on certain cooperage facility assets held for sale.

The charges we currently expect to incur in connection with the Plan are subject to a number of assumptions and risks, and actual results may differ materially. We may also incur other material charges not currently contemplated due to events that may occur as a result of, or in connection with, the Plan.

The following table summarizes the activity in our accrued restructuring costs:

(Dollars in millions)	Severance and Other Employee-Related Costs		Other Restructuring Charges		Total
Balance at April 30, 2024	$	—	$	—	$	—
Costs incurred and charged to expense	19		8		27
Costs paid or otherwise settled	(2)		(6)		(8)
Balance at January 31, 2025	$	17	$	2	$	19