Restructuring and Other Charges

9 Months Ended

Jan. 31, 2026

Restructuring and Related Activities [Abstract]

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 (Restructuring Initiative). This included reducing our worldwide headcount by approximately 12% and closing our Louisville-based Brown-Forman Cooperage. These actions were substantially implemented in fiscal 2025, with the remainder to be completed by the end of fiscal 2026.

We expect to incur aggregate restructuring charges of approximately $67 to $70 million in connection with these actions, consisting primarily of approximately $31 to $32 million in severance and other employee-related costs and approximately $36 to $38 million in other restructuring costs, including costs related to the Louisville-based Brown-Forman Cooperage facility closure and consulting services associated with the restructuring actions. Through January 31, 2026, we recognized $67 million of restructuring and other charges associated with these actions, comprising $65 million in restructuring charges and $2 million in other charges for asset impairments. In fiscal 2025, we also recorded $12 million in other charges associated with a special, one-time early retirement benefit and $3 million in charges to adjust the carrying amount of certain Brown-Forman Cooperage inventory to the amount we expected to realize upon disposal (included in cost of sales in our consolidated statement of operations). As of January 31, 2026, $52 million of the charges to be settled in cash have been paid.

The following table summarizes the restructuring and other charges recognized during the three months and nine months ended January 31, 2025 and 2026, respectively.



	Three Months Ended				Nine Months Ended
	January 31,				January 31,
(Dollars in millions)	2025		2026		2025		2026
Restructuring charges:
Severance and other employee-related costs	$	19	$	3	$	19	$	7
Other restructuring charges1	6		—		8		12
Restructuring charges	25		3		27		19
Other charges2	6		—		6		—
Total restructuring and other charges	$	31	$	3	$	33	$	19

1Primarily represents one-time costs related to the cooperage facility closure, consulting services, 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 that were recognized during the three months ended January 31, 2025.

The charges we currently expect to incur in connection with the Restructuring Initiative 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 Restructuring Initiative.

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, 2025	$	13	$	6	$	19






Costs incurred and charged to expense	7		12		19
Costs paid or otherwise settled	(18)		(7)		(25)

Balance at January 31, 2026	$	2	$	11	$	13

Additionally, on May 1, 2025, we completed the sale of the Brown-Forman Cooperage facility and related assets for $33 million in cash and $88 million in non-cash consideration related to a supply contract with the sellers (refer to Note 4). The carrying amount of the assets included in the sale was $121 million, consisting of $33 million in property, plant, and equipment, net, and $88 million in inventories. As a result of the sale, we recognized an immaterial pre-tax gain during the first quarter of fiscal 2026.