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 (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 charges of approximately $60 to $70 in connection with these actions, consisting primarily of approximately $27 to $32 in severance and other employee-related costs and approximately $33 to $38 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 April 30, 2025, we recognized $48 of restructuring and other charges associated with these actions, comprising $46 in restructuring charges and $2 in asset impairments included in other charges. The remaining $12 in other charges represents costs associated with a special one-time early retirement benefit. We also recorded $3 in charges to adjust the carrying value of certain Brown-Forman Cooperage inventory to the amount we expect to realize upon disposal. These charges are included in cost of sales in our consolidated statement of operations. As of April 30, 2025, $27 of the charges to be settled in cash have been paid.

The following table summarizes the restructuring and other charges recognized in fiscal 2025:



Restructuring charges:
Severance and other employee-related costs	$	24
Other restructuring charges1	22
Restructuring charges	46
Other charges2	14
Total restructuring and other charges	$	60

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

2Represents $12 in costs associated with a special one-time early retirement benefit to qualifying U.S. employees and $2 in impairment charges on certain cooperage facility assets held for sale.

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:


	Severance and Other Employee-Related Costs		Other Restructuring Charges		Total
Balance at April 30, 2024	$	—	$	—	$	—
Costs incurred and charged to expense	24		22		46
Costs paid or otherwise settled	(11)		(16)		(27)
Balance at April 30, 2025	$	13	$	6	$	19