Description of Plan

12 Months Ended

Dec. 31, 2025

EBP, Description of Plan [Line Items]


1.			Description of Plan

The sponsor of the Brown-Forman Corporation Savings Plan for Collectively Bargained Employees (the Plan), Brown-Forman Corporation (the Company or the Sponsor), is a leading producer and marketer of fine quality consumer products in domestic and international markets. The Company's operations include the production, distribution, and marketing of distilled spirits.

The following brief description of the Plan is provided for general information purposes only. Participants should refer to the plan document or summary plan description for more complete information.

General

The Plan is a defined contribution plan covering substantially all union hourly employees of the Company at the Brown-Forman Distillery Operations and Brown-Forman Cooperage. The Plan is subject to the provisions of the Employee Retirement Income Security Act of 1974 (ERISA).

The Plan was restated in its entirety effective January 1, 2016 and last amended October 1, 2023.

Empower Retirement, LLC (Empower) serves as Recordkeeper and Empower Trust Company, LLC serves as Directed Trustee for the Plan.

Contributions

Employees at the Brown-Forman Distillery Operations and Brown-Forman Distillery who are members of Local Unions 89, 320, 110 and 369 may contribute between 1% and 100% of their weekly compensation. Employees at the Brown-Forman Cooperage who are members of Local Unions 2309 and 320 could also contribute at the same rates until April 25, 2025, which was the effective date of the Cooperage’s closure. Contributions may be made in pre-tax and/or Roth (after-tax) dollars. Employee contributions are not to exceed the Section 402(g) Internal Revenue Code (the IRC) limitation for the calendar year of $23,500 and $23,000 for 2025 and 2024, respectively, plus “catch-up” contribution amounts provided for in the IRC. Participants may rollover assets from their former employers' qualified plans to the Plan provided that the rollover will not jeopardize the tax-exempt status of the Plan or create an adverse tax consequence for the Company. Employees who are members of the Unions covered under this Plan, and who have completed 60 calendar days of service to become eligible for the Plan, shall be automatically enrolled at a 5% deferral rate unless they opt out or elect differently. Rehired employees are also automatically enrolled in the Plan at a 5% deferral rate unless they elect differently.

Eligible participants who have attained age 50 before the close of the plan year may make catch-up contributions in an amount of 1% to 100% of the employee's compensation, subject to the limitations of the IRC. Catch-up contributions are not matched by the Company.

The Company contributes matching contributions in an amount equal to 100% of the participant’s elective deferral for up to 5% of compensation that is deferred. Company matching contributions are made with each payroll period in which there are deferrals by the participant. At the end of the year, the Company may make a true-up match contribution for those participants still employed on December 31.

Participant accounts are credited with the participant contributions and an allocation of (i) the Company's contribution on a per-payroll basis, and (ii) plan earnings daily. Credits for employer contributions are made on a per-payroll basis. Allocations are based on the participants’ contributions, earnings, account balances, or specific participant transactions, as defined in the Plan. The total annual contributions, as defined by the Internal Revenue Service (IRS) and the Plan, credited to a participant’s account in a plan year may not exceed the lesser of (i) $70,000, or (ii) 100% of the participant's compensation in the plan year.

Participants can allocate contributions among various investment options in 1% increments. The Plan currently offers participants several different investment choices, including mutual funds, common collective trust funds, pooled separate accounts and Brown-Forman Corporation Class B common stock in the Employee Stock Ownership Plan (ESOP) component of the Plan. Effective July 13, 2023, new investments in Brown-Forman Corporation Class B common stock under the ESOP component of the Plan are no longer permitted; dividend reinvestments continue to be allowed.

Vesting

Participants are immediately vested in their employee contributions plus actual earnings thereon. Vesting in the Company's contributions and earnings thereon is 25% per year of service with the Company. After four years of service, participants will become 100% vested in the company contributions account. Participants will become 100% vested in their Company contributions account in case of death, normal retirement or total and permanent disability while employed.

Withdrawals

Upon termination of service, participants can elect to transfer their vested interest in the Plan to a qualified plan of their new employer, roll over their funds into an Individual Retirement Account (IRA), or receive their vested interest in the Plan. Payments to participants can be made via partial withdrawals, in a lump-sum amount or in the form of installment payments over a period of time not to exceed life expectancy. Withdrawals of investments in Brown-Forman Class B common stock may be taken in the form of Brown-Forman Class B common stock (in kind) or cash. Upon termination of employment, if the total vested account balance is $7,000 or less, and the participant does not direct otherwise, it will be automatically rolled over into an IRA with Inspira Financial; or, distributed in cash in the case of a participant who has attained normal retirement age (65). In the event of death, participant beneficiaries will receive the vested interest in a permitted payment form that they elect. Participants may also withdraw their vested interest in the case of financial hardship under guidelines promulgated by the IRS.

Any fully vested participant age 59 1/2 or older, may request an in-service withdrawal.

Notes Receivable from Participants

A participant may borrow a portion of their vested benefit under the Plan. Loans are limited to the lesser of $50,000 or 50% of the vested account balance. Loans must bear a reasonable rate of interest, be secured by the balance in the participant's account and be repaid within five years. Interest rates are fixed based on prevailing rates charged by lending institutions. The interest rate for outstanding loans at December 31, 2025 and 2024 ranged from 3.25% to 9.50%. For actively working participants, principal and interest are paid ratably through payroll deductions. In the event of layoff, leave of absence, termination, or retirement, loan payments may continue to be made directly to the Trustee/Recordkeeper. Principal and interest paid on participant loans is allocated directly to the applicable participant's account.

Forfeited Accounts

Forfeited balances of terminated participants' non-vested accounts are used first to reinstate previously forfeited account balances of re-employed participants, if any, and the remaining amounts are used to reduce Company contributions, as defined in the plan document, or may be used to pay administrative expenses of the Plan. The unused remaining balance of forfeitures available to offset future employer contributions and administrative expenses was $28,339 and $30,416 as of December 31, 2025 and 2024, respectively. The employer matching contributions receivable reflected in the financial statements as of December 31, 2025 was reduced to $0 after applying forfeitures totaling $942 that were used when the contributions were remitted in 2026. The employer matching contributions receivable amount reflected in the financial statements as of December 31, 2024, is net of forfeitures totaling $2,576 that were used when the contributions were remitted in 2025. Also during 2025, forfeitures totaling $33,879 were used to reduce the amount of employer matching contributions made throughout the year.

Employee Stock Ownership Plan

The Plan includes a participant directed ESOP, which includes Company Class B common stock in the participant’s account and provides participants the option of having cash dividends payable on shares of Company Class B common stock held in the ESOP either paid directly to the participant in cash or reinvested in the ESOP. Effective July 13, 2023, this investment option was frozen to transfers and new contributions. Dividend reinvestment is still permitted.

Transfers to/from Company Sponsored Plan

The Plan permits the transfer of participant account balances to or from another Company sponsored plan as a participant experiences changes in employment status. During 2025, a total of $32,533 (including loan balances of $8,329) of Plan assets was transferred to other Company sponsored plans.