Goodwill and Other Intangible Assets

6 Months Ended

Oct. 31, 2025

Goodwill and Intangible Assets Disclosure [Abstract]

Goodwill and Other Intangible Assets

Goodwill and Other Intangible Assets

The following table shows the changes in goodwill (which includes no accumulated impairment losses) during the six months ended October 31, 2025:

(Dollars in millions)	Goodwill
Balance at April 30, 2025	$	1,505
Foreign currency translation adjustment	5
Balance at October 31, 2025	$	1,510

The following table presents details of our other intangible assets as of April 30, 2025 and October 31, 2025, respectively:

	April 30, 2025				October 31, 2025
(Dollars in millions)	Gross Carrying Amount		Net Carrying Amount		Gross Carrying Amount		Net Carrying Amount
Definite-lived intangible assets:
Supply contract	$	—	$	—	$	88	$	88
Indefinite-lived intangible assets:
Trademarks and brand names	981		981		987		987
Total other intangible assets	$	981	$	981	$	1,075	$	1,075

Net carrying amount represents the gross carrying amount net of accumulated amortization. During the first quarter of fiscal 2026, we recognized a definite-lived supply contract intangible asset of $88 million. This amount relates to a barrel supply agreement and was obtained as partial consideration for the sale of the Brown-Forman Cooperage facility and related assets on May 1, 2025 (refer to Note 6). We determined the estimated fair value of the supply contract using a discounted cash flow model. This method requires the use of assumptions, such as projected future market prices and discount rates (refer to Note 14). Amortization related to the supply contract used in the production of barrels will be capitalized into inventories. The supply contract will be amortized based on the actual realization of the benefit over the term of the contract. We expect to realize the benefit over six years. There were no amounts of amortization recorded for the three months and six months ended October 31, 2025.

The increase in the indefinite-lived intangible assets from April 30, 2025 to October 31, 2025, was primarily driven by the impact of foreign exchange rates.