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. Most of these actions were implemented in 2025 and substantially completed during 2026.

We incurred aggregate restructuring and other charges of $67 in connection with these actions, consisting of $31 in severance and other employee-related costs, $34 in other restructuring charges primarily related to the Brown-Forman Cooperage facility closure and consulting services associated with the restructuring actions, and $2 in other charges for cooperage asset impairments. In 2025, we also recorded $12 in other charges associated with a special one-time early retirement benefit and $3 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 April 30, 2026, $56 of the restructuring charges to be settled in cash have been paid.



Year Ended April 30,	2025		2026
Restructuring charges:
Severance and other employee-related costs	$	24	$	7
Other restructuring charges1	22		12
Restructuring charges	46		19
Other charges2	14		—
Total restructuring and other charges	$	60	$	19

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 that were recognized in 2025.


	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
Costs incurred and charged to expense	7		12		19
Costs paid or otherwise settled	(19)		(10)		(29)
Balance at April 30, 2026	$	1	$	8	$	9

Additionally, on May 1, 2025, we completed the sale of the Brown-Forman Cooperage facility and related assets for $33 in cash and $88 in non-cash consideration related to a supply contract with the counterparty (refer to Note 4). The carrying amount of the assets included in the sale was $121, consisting of $33 in property, plant, and equipment, net, and $88 in inventories. As a result of the sale, we recognized an immaterial pre-tax gain during the first quarter of 2026. These assets were considered held for sale and presented as a separate line item in the consolidated balance sheet as of April 30, 2025.