Goodwill and Other Intangible Assets

9 Months Ended

Jan. 31, 2026

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 nine months ended January 31, 2026:

(Dollars in millions)	Goodwill
Balance at April 30, 2025	$	1,505
Foreign currency translation adjustment	31
Balance at January 31, 2026	$	1,536

The following table presents details of our other intangible assets as of April 30, 2025 and January 31, 2026, respectively:

	April 30, 2025						January 31, 2026
(Dollars in millions)	Gross Carrying Amount		Accumulated Amortization		Net Carrying Amount		Gross Carrying Amount		Accumulated Amortization		Net Carrying Amount
Definite-lived intangible assets:
Supply contract	$	—	$	—	$	—	$	88	$	(6)	$	82
Indefinite-lived intangible assets:
Trademarks and brand names	981				981		1,006				1,006
Total other intangible assets	$	981			$	981	$	1,094			$	1,088

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 was $6 million of amortization capitalized into inventories during the three months and nine months ended January 31, 2026.

The increase in the indefinite-lived intangible assets from April 30, 2025 to January 31, 2026, was primarily driven by the impact of foreign exchange rates.