BF-A

MKT CAP $14.2BP/E 19.4DIV YIELD —FCF YIELD 6.50%REV TTM $3.9B −0.8%NET INCOME $721M −14.6%NET DEBT $1.8B52W 23.20 – 30.91SEC XBRL · TTM TO Invalid Date

How BF-A rewrote its risk factors

10-K ITEM 1A · FY2025 → FY2026

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Based on this assessment, management concluded that our internal control over financial reporting was effective as of April 30, 2026.
EY, which audited and reported on the Company’s consolidated financial statements, has audited the effectiveness of our internal control over financial reporting as of April 30, 2026, as stated in their report.
Whiting President and Chief Executive Officer By: /s/ James W.
Peters Executive Vice President and Chief Financial Officer Report of Independent Registered Public Accounting Firm To the Stockholders and the Board of Directors of Brown-Forman Corporation Opinion on the Financial Statements We have audited the accompanying consolidated balance sheets of Brown-Forman Corporation and subsidiaries (the Company) as of April 30, 2026 and 2025, the related consolidated statements of operations, comprehensive income, stockholders’ equity and cash flows for each of the three years in the period ended April 30, 2026, and the related notes and financial statement schedule listed in the Index at Item 15(a)(2) (collectively referred to as the “consolidated financial statements”).
In our opinion, the consolidated financial statements present fairly, in all material respects, the financial position of the Company at April 30, 2026 and 2025, and the results of its operations and its cash flows for each of the three years in the period ended April 30, 2026, in conformity with U.S. generally accepted accounting principles.
We also have audited, in accordance with the standards of the Public Company Accounting Oversight Board (United States) (PCAOB), the Company's internal control over financial reporting as of April 30, 2026, based on criteria established in Internal Control—Integrated Framework issued by the Committee of Sponsoring Organizations of the Treadway Commission (2013 framework), and our report dated June 12, 2026 expressed an unqualified opinion thereon.
The communication of the critical audit matter does not alter in any way our opinion on the consolidated financial statements, taken as a whole, and we are not, by communicating the critical audit matter below, providing a separate opinion on the critical audit matter or on the accounts or disclosures to which it relates.
Valuation of Gin Mare and Diplomático Other Intangible Assets Description of the Matter At April 30, 2026, the balance of the Company’s other intangible assets with indefinite lives was $866 million.
As described in Note 4, the Company recognized impairment charges of $45 million and $87 million, respectively, for its Gin Mare and Diplomático brand name indefinite-lived intangible assets.
The Company estimated the fair value of the Gin Mare and Diplomático brand names using the relief-from-royalty method.
The fair value estimates were sensitive to significant assumptions used in the valuation process, such as net sales projections, discount rates and royalty rates.
How We Addressed the Matter in Our Audit We obtained an understanding, evaluated the design, and tested the operating effectiveness of controls over the Company’s process to estimate the fair value of the Gin Mare and Diplomático brand names.
This included management’s review of the significant assumptions, described above, used in the valuation models.
To test the estimated fair value of the Gin Mare and Diplomático brand names, we performed audit procedures that included, among others, testing the significant assumptions discussed above.
We also performed sensitivity analyses of significant assumptions to evaluate the changes in the fair value of the brand names that would result from changes in the significant assumptions.
We involved valuation specialists, where relevant, to assist with our audit procedures. /s/ Ernst & Young LLP We have served as the Company’s auditor since 2020.
Louisville, Kentucky June 12, 2026 Report of Independent Registered Public Accounting Firm To the Stockholders and the Board of Directors of Brown-Forman Corporation Opinion on Internal Control Over Financial Reporting We have audited Brown-Forman Corporation and subsidiaries’ internal control over financial reporting as of April 30, 2026, based on criteria established in Internal Control—Integrated Framework issued by the Committee of Sponsoring Organizations of the Treadway Commission (2013 framework) (the COSO criteria).
In our opinion, Brown-Forman Corporation and subsidiaries (the Company) maintained, in all material respects, effective internal control over financial reporting as of April 30, 2026, based on the COSO criteria.
We also have audited, in accordance with the standards of the Public Company Accounting Oversight Board (United States) (PCAOB), the consolidated balance sheets of the Company as of April 30, 2026 and 2025, the related consolidated statements of operations, comprehensive income, stockholders’ equity and cash flows for each of the three years in the period ended April 30, 2026, and the related notes and financial statement schedule listed in the Index at Item 15(a)(2) and our report dated June 12, 2026 expressed an unqualified opinion thereon.
Also, projections of any evaluation of effectiveness to future periods are subject to the risk that controls may become inadequate because of changes in conditions, or that the degree of compliance with the policies or procedures may deteriorate. /s/ Ernst & Young LLP Louisville, Kentucky June 12, 2026 Brown-Forman Corporation and Subsidiaries Consolidated Statements of Operations (Dollars in millions, except per share amounts) Year Ended April 30, 2024 2025 2026 Sales $ 5,328 $ 5,056 $ 5,082 Excise taxes 1,150 1,081 1,154 Net sales 4,178 3,975 3,928 Cost of sales 1,652 1,632 1,550 Gross profit 2,526 2,343 2,378 Advertising expenses 529 484 462 Selling, general, and administrative expenses 826 744 807 Restructuring and other charges — 60 19 Gain on business divestitures ( 267 ) — — Other intangible assets impairment 7 47 132 Other expense (income), net 17 ( 99 ) ( 43 ) Operating income 1,414 1,107 1,001 Non-operating postretirement expense 3 4 27 Interest income ( 14 ) ( 17 ) ( 14 ) Interest expense 127 122 103 Equity method investment income and gain on sale — ( 83 ) — Income before income taxes 1,298 1,081 885 Income taxes 274 212 170 Net income $ 1,024 $ 869 $ 715 Earnings per share: Basic $ 2.15 $ 1.84 $ 1.53 Diluted $ 2.14 $ 1.84 $ 1.53 The accompanying notes are an integral part of the consolidated financial statements.
Brown-Forman Corporation and Subsidiaries Consolidated Statements of Comprehensive Income (Dollars in millions) Year Ended April 30, 2024 2025 2026 Net income $ 1,024 $ 869 $ 715 Other comprehensive income (loss), net of tax: Currency translation adjustments ( 7 ) 19 91 Cash flow hedge adjustments — ( 15 ) — Postretirement benefits adjustments 21 ( 3 ) 21 Net other comprehensive income (loss) 14 1 112 Comprehensive income $ 1,038 $ 870 $ 827 The accompanying notes are an integral part of the consolidated financial statements.
Brown-Forman Corporation and Subsidiaries Consolidated Balance Sheets (Dollars in millions, except per share amounts) April 30, 2025 2026 Assets Cash and cash equivalents $ 444 $ 308 Accounts receivable, net 830 832 Inventories: Barreled whiskey 1,567 1,562 Finished goods 476 482 Work in process 378 414 Raw materials and supplies 90 85 Total inventories 2,511 2,543 Assets held for sale 121 — Other current assets 289 308 Total current assets 4,195 3,991 Property, plant, and equipment, net 1,095 1,116 Goodwill 1,505 1,522 Other intangible assets 981 943 Deferred tax assets 47 35 Other assets 263 287 Total assets $ 8,086 $ 7,894 Liabilities Accounts payable and accrued expenses $ 741 $ 795 Accrued income taxes 27 18 Short-term borrowings 312 68 Current portion of long-term debt — 351 Total current liabilities 1,080 1,232 Long-term debt 2,421 2,083 Deferred tax liabilities 241 207 Accrued pension and other postretirement benefits 164 172 Other liabilities 187 180 Total liabilities 4,093 3,874 Commitments and contingencies Stockholders’ Equity Common stock: Class A, voting, $ 0.15 par value ( 170,000,000 shares authorized; 170,000,000 shares issued) 25 25 Class B, nonvoting, $ 0.15 par value ( 400,000,000 shares authorized; 314,532,000 shares issued) 47 47 Additional paid-in capital 36 62 Retained earnings 4,710 4,998 Accumulated other comprehensive income (loss), net of tax ( 220 ) ( 108 ) Treasury stock, at cost ( 11,863,000 and 25,828,000 shares in 2025 and 2026, respectively) ( 605 ) ( 1,004 ) Total stockholders’ equity 3,993 4,020 Total liabilities and stockholders’ equity $ 8,086 $ 7,894 The accompanying notes are an integral part of the consolidated financial statements.
Brown-Forman Corporation and Subsidiaries Consolidated Statements of Cash Flows (Dollars in millions) Year Ended April 30, 2024 2025 2026 Cash flows from operating activities: Net income $ 1,024 $ 869 $ 715 Adjustments to reconcile net income to net cash provided by operations: Gain on business divestitures ( 267 ) — — Equity method investment income and gain on sale — ( 83 ) — Other intangible assets impairment 7 47 132 Depreciation and amortization 87 87 92 Stock-based compensation expense 25 28 32 Deferred income tax provision (benefit) 18 ( 39 ) ( 37 ) Change in fair value of contingent consideration 9 ( 43 ) ( 15 ) Other, net 7 ( 15 ) ( 1 ) Changes in assets and liabilities, net of business divestitures: Accounts receivable 88 ( 70 ) 25 Inventories ( 349 ) ( 64 ) ( 22 ) Other current assets 23 ( 25 ) ( 17 ) Accounts payable and accrued expenses ( 31 ) ( 40 ) 36 Accrued income taxes 17 ( 13 ) ( 7 ) Other operating assets and liabilities ( 11 ) ( 41 ) 67 Cash provided by operating activities 647 598 1,000 Cash flows from investing activities: Proceeds from business divestitures 246 — — Proceeds from sale of equity method investment — 350 — Additions to property, plant, and equipment ( 228 ) ( 167 ) ( 107 ) Proceeds from sale of cooperage assets — 51 33 Other, net 31 15 3 Cash provided by (used for) investing activities 49 249 ( 71 ) Cash flows from financing activities: Net change in short term borrowings 192 ( 117 ) ( 244 ) Repayment of long-term debt — ( 300 ) — Acquisition of treasury stock ( 400 ) — ( 400 ) Dividends paid ( 404 ) ( 420 ) ( 427 ) Other, net ( 6 ) ( 6 ) ( 3 ) Cash used for financing activities ( 618 ) ( 843 ) ( 1,074 ) Effect of exchange rate changes on cash, cash equivalents, and restricted cash ( 6 ) 3 9 Net increase (decrease) in cash, cash equivalents, and restricted cash 72 7 ( 136 ) Cash, cash equivalents, and restricted cash at beginning of period 384 456 463 Cash, cash equivalents, and restricted cash at end of period 456 463 327 Less: Restricted cash (included in other current assets) at end of period ( 10 ) ( 19 ) ( 19 ) Cash and cash equivalents at end of period $ 446 $ 444 $ 308 The accompanying notes are an integral part of the consolidated financial statements.
Brown-Forman Corporation and Subsidiaries Consolidated Statements of Cash Flows (Dollars in millions) Year Ended April 30, 2024 2025 2026 Supplemental information: Cash paid for interest $ 125 $ 119 $ 101 Cash paid for income taxes (Note 13) $ 242 $ 303 $ 232 Non-cash additions to property, plant, and equipment $ 20 $ 14 $ 9 The accompanying notes are an integral part of the consolidated financial statements.
Brown-Forman Corporation and Subsidiaries Consolidated Statements of Stockholders’ Equity (Dollars in millions, except per share amounts) Class A Common Stock Class B Common Stock Additional Paid-in Capital Retained Earnings AOCI Treasury Stock Total Balance at April 30, 2023 $ 25 $ 47 $ 1 $ 3,643 $ ( 235 ) $ ( 213 ) $ 3,268 Net income 1,024 1,024 Net other comprehensive income (loss) 14 14 Cash dividends ($ 0.8466 per share) ( 404 ) ( 404 ) Acquisition of treasury stock ( 404 ) ( 404 ) Stock-based compensation expense 25 25 Stock issued under compensation plans 9 9 Loss on treasury stock issued under compensation plans ( 13 ) ( 2 ) ( 15 ) Balance at April 30, 2024 25 47 13 4,261 ( 221 ) ( 608 ) 3,517 Net income 869 869 Net other comprehensive income (loss) 1 1 Cash dividends ($ 0.8886 per share) ( 420 ) ( 420 ) Stock-based compensation expense 28 28 Stock issued under compensation plans 3 3 Loss on treasury stock issued under compensation plans ( 5 ) ( 5 ) Balance at April 30, 2025 25 47 36 4,710 ( 220 ) ( 605 ) 3,993 Net income 715 715 Net other comprehensive income (loss) 112 112 Cash dividends ($ 0.9150 per share) ( 427 ) ( 427 ) Acquisition of treasury stock ( 404 ) ( 404 ) Stock-based compensation expense 32 32 Stock issued under compensation plans 5 5 Loss on treasury stock issued under compensation plans ( 6 ) ( 6 ) Balance at April 30, 2026 $ 25 $ 47 $ 62 $ 4,998 $ ( 108 ) $ ( 1,004 ) $ 4,020 The accompanying notes are an integral part of the consolidated financial statements.
Brown-Forman Corporation and Subsidiaries Notes to Consolidated Financial Statements (Dollars and other currency amounts in millions, except per share data) In these notes, “we,” “us,” “our,” “Brown-Forman,” and the “Company” refer to Brown-Forman Corporation and its consolidated subsidiaries, collectively.
The years presented reflect fiscal years ended April 30, unless otherwise indicated. 1.
The allowance for doubtful accounts was $ 7 and $ 6 at April 30, 2025 and 2026, respectively.
Approximately 51 % of our consolidated inventories are valued using the last-in, first-out (LIFO) cost method, which we use for the majority of our U.S. inventories.
If we had used the FIFO method for all inventories, they would have been $ 600 and $ 702 higher than reported at April 30, 2025 and 2026, respectively.
Considerable management judgment is necessary to estimate fair value, including the selection of assumptions about net sales projections, discount rates, and royalty rates.
Intangible assets determined to have a definite life are amortized over their estimated useful lives and are subject to review for impairment when events or circumstances indicate that the carrying amount of an asset may not be recoverable.
Certain prior year amounts have been reclassified to conform with the current year’s presentation.
In December 2023, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update (ASU) 2023-09, Income Taxes (Topic 740): Improvements to Income Tax Disclosures (ASU 2023-09), requiring additional annual disclosures about income taxes, primarily related to the rate reconciliation and information about income taxes paid.
We adopted the new guidance for our annual period ended April 30, 2026 and applied the updated standard prospectively (refer to Note 13).
In November 2024, the FASB issued ASU 2024-03, Income Statement—Reporting Comprehensive Income—Expense Disaggregation Disclosures (Subtopic 220-40) , requiring disaggregation, in the notes to the financial statements, of expense line items in the income statement that include certain categories of expenses.
We are required to adopt the updated standard for annual disclosures for the period ending April 30, 2028, and for interim disclosures within 2029, with earlier adoption permitted.
We are currently evaluating the impact that adopting this ASU will have on our disclosures. 2.
Balance Sheet Information Supplemental information on our year-end balance sheets is as follows: April 30, 2025 2026 Property, plant, and equipment: Land $ 49 $ 57 Buildings 841 917 Equipment 869 948 Construction in process 180 116 1,939 2,038 Less: Accumulated depreciation 844 922 $ 1,095 $ 1,116 Accounts payable and accrued expenses: Accounts payable, trade $ 243 $ 214 Accrued expenses: Advertising, promotion, and discounts 197 227 Compensation and commissions 86 117 Excise and other non-income taxes 67 79 Other 148 158 498 581 $ 741 $ 795 Other liabilities: Contingent consideration $ 31 $ 16 Other 156 164 $ 187 $ 180 April 30, 2025 2026 Accumulated other comprehensive income (loss), net of tax: Currency translation adjustments $ ( 92 ) $ ( 1 ) Cash flow hedge adjustments ( 5 ) ( 5 ) Postretirement benefits adjustments ( 123 ) ( 102 ) $ ( 220 ) $ ( 108 ) 3.
The following table presents information concerning basic and diluted earnings per share: Year Ended April 30, 2024 2025 2026 Net income available to common stockholders $ 1,024 $ 869 $ 715 Share data (in thousands): Basic average common shares outstanding 476,394 472,655 466,335 Dilutive effect of stock-based awards 826 295 398 Diluted average common shares outstanding 477,220 472,950 466,733 Basic earnings per share $ 2.15 $ 1.84 $ 1.53 Diluted earnings per share $ 2.14 $ 1.84 $ 1.53 We excluded common stock-based awards for approximately 1,689,000 shares, 3,325,000 shares, and 4,775,000 shares from the calculation of diluted earnings per share for 2024, 2025, and 2026, respectively, because they were not dilutive for those periods under the treasury stock method. 4.

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Gone since FY2025

Based on this assessment, management concluded that our internal control over financial reporting was effective as of April 30, 2025.
EY, which audited and reported on the Company’s consolidated financial statements, has audited the effectiveness of our internal control over financial reporting as of April 30, 2025, as stated in their report.
Whiting President and Chief Executive Officer By: /s/ Leanne D.
Cunningham Executive Vice President and Chief Financial Officer Report of Independent Registered Public Accounting Firm To the Stockholders and the Board of Directors of Brown-Forman Corporation Opinion on the Financial Statements We have audited the accompanying consolidated balance sheets of Brown-Forman Corporation and Subsidiaries (the Company) as of April 30, 2025 and 2024, the related consolidated statements of operations, comprehensive income, stockholders’ equity and cash flows for each of the three years in the period ended April 30, 2025, and the related notes and financial statement schedule listed in the Index at Item 15(a)(2) (collectively referred to as the “consolidated financial statements”).
In our opinion, the consolidated financial statements present fairly, in all material respects, the financial position of the Company at April 30, 2025 and 2024, and the results of its operations and its cash flows for each of the three years in the period ended April 30, 2025, in conformity with U.S. generally accepted accounting principles.
We also have audited, in accordance with the standards of the Public Company Accounting Oversight Board (United States) (PCAOB), the Company’s internal control over financial reporting as of April 30, 2025, based on criteria established in Internal Control-Integrated Framework issued by the Committee of Sponsoring Organizations of the Treadway Commission (2013 framework), and our report dated June 13, 2025 expressed an unqualified opinion thereon.
The communication of the critical audit matter does not alter in any way our opinion on the consolidated financial statements, taken as a whole, and we are not, by communicating the critical audit matter below, providing a separate opinion on the critical audit matter or on the account or disclosures to which it relates.
Valuation of Gin Mare and Diplomático Other Intangible Assets Description of the Matter At April 30, 2025, the balance of the Company’s other intangible assets with indefinite lives was $981 million.
As described in Note 4, the Company recognized an impairment charge of $47 million for its Gin Mare brand name indefinite-lived intangible asset.
The Company’s annual impairment test did not result in an impairment of the Diplomático brand name indefinite-lived intangible asset.
The Company estimated the fair value of the Gin Mare and Diplomático brand names indefinite-lived intangible assets using the relief-from-royalty method.
The fair value estimates were sensitive to significant assumptions used in the valuation process, such as net sales, discount rates and royalty rates.
How We Addressed the Matter in Our Audit We obtained an understanding, evaluated the design, and tested the operating effectiveness of controls that address the risks of material misstatement over the Company’s process to estimate the fair value of the Gin Mare and Diplomático brand names, including controls over management’s review of the selection of assumptions, described above, used in the valuation models.
To test the estimated fair value of the Company’s Gin Mare and Diplomático brand names, we performed audit procedures that included, among others, assessing methodologies used in the valuation models and testing the significant assumptions discussed above.
This included comparing the significant assumptions used by management to observable market data, current industry and economic trends, and historical operating results.
We assessed management’s historical estimates and performed sensitivity analyses of assumptions to evaluate the changes in the fair value of the brand names that would result from changes in the assumptions.
We also involved valuation specialists to assist in evaluating valuation methodologies and certain assumptions used in the models. /s/ Ernst & Young LLP We have served as the Company’s auditor since 2020.
Louisville, Kentucky June 13, 2025 Report of Independent Registered Public Accounting Firm To the Stockholders and the Board of Directors of Brown-Forman Corporation Opinion on Internal Control Over Financial Reporting We have audited Brown-Forman Corporation and Subsidiaries’ internal control over financial reporting as of April 30, 2025, based on criteria established in Internal Control—Integrated Framework issued by the Committee of Sponsoring Organizations of the Treadway Commission (2013 framework), (the COSO criteria).
In our opinion, Brown-Forman Corporation and Subsidiaries (the Company) maintained, in all material respects, effective internal control over financial reporting as of April 30, 2025, based on the COSO criteria.
We also have audited, in accordance with the standards of the Public Company Accounting Oversight Board (United States) (PCAOB), the consolidated balance sheets of the Company as of April 30, 2025 and 2024, the related consolidated statements of operations, comprehensive income, stockholders’ equity and cash flows for each of the three years in the period ended April 30, 2025, and the related notes and financial statement schedule listed in the Index at Item 15(a)(2) and our report dated June 13, 2025 expressed an unqualified opinion thereon.
Also, projections of any evaluation of effectiveness to future periods are subject to the risk that controls may become inadequate because of changes in conditions, or that the degree of compliance with the policies or procedures may deteriorate. /s/ Ernst & Young LLP Louisville, Kentucky June 13, 2025 Brown-Forman Corporation and Subsidiaries Consolidated Statements of Operations (Dollars in millions, except per share amounts) Year Ended April 30, 2023 2024 2025 Sales $ 5,372 $ 5,328 $ 5,056 Excise taxes 1,144 1,150 1,081 Net sales 4,228 4,178 3,975 Cost of sales 1,734 1,652 1,632 Gross profit 2,494 2,526 2,343 Advertising expenses 506 529 484 Selling, general, and administrative expenses 742 826 744 Restructuring and other charges — — 60 Gain on business divestitures — ( 267 ) — Other expense (income), net 119 24 ( 52 ) Operating income 1,127 1,414 1,107 Non-operating postretirement expense 29 3 4 Interest income ( 9 ) ( 14 ) ( 17 ) Interest expense 90 127 122 Equity method investment income and gain on sale — — ( 83 ) Income before income taxes 1,017 1,298 1,081 Income taxes 234 274 212 Net income $ 783 $ 1,024 $ 869 Earnings per share: Basic $ 1.63 $ 2.15 $ 1.84 Diluted $ 1.63 $ 2.14 $ 1.84 The accompanying notes are an integral part of the consolidated financial statements.
Brown-Forman Corporation and Subsidiaries Consolidated Statements of Comprehensive Income (Dollars in millions) Year Ended April 30, 2023 2024 2025 Net income $ 783 $ 1,024 $ 869 Other comprehensive income (loss), net of tax: Currency translation adjustments 135 ( 7 ) 19 Cash flow hedge adjustments ( 27 ) — ( 15 ) Postretirement benefits adjustments 9 21 ( 3 ) Net other comprehensive income (loss) 117 14 1 Comprehensive income $ 900 $ 1,038 $ 870 The accompanying notes are an integral part of the consolidated financial statements.
Brown-Forman Corporation and Subsidiaries Consolidated Balance Sheets (Dollars in millions) April 30, 2024 2025 Assets Cash and cash equivalents $ 446 $ 444 Accounts receivable, net 769 830 Inventories: Barreled whiskey 1,490 1,567 Finished goods 452 476 Work in process 396 378 Raw materials and supplies 218 90 Total inventories 2,556 2,511 Assets held for sale — 121 Other current assets 265 289 Total current assets 4,036 4,195 Property, plant, and equipment, net 1,074 1,095 Goodwill 1,455 1,505 Other intangible assets 990 981 Equity method investments 270 3 Deferred tax assets 69 47 Other assets 272 260 Total assets $ 8,166 $ 8,086 Liabilities Accounts payable and accrued expenses $ 793 $ 741 Accrued income taxes 38 27 Short-term borrowings 428 312 Current portion of long-term debt 300 — Total current liabilities 1,559 1,080 Long-term debt 2,372 2,421 Deferred tax liabilities 315 241 Accrued pension and other postretirement benefits 160 164 Other liabilities 243 187 Total liabilities 4,649 4,093 Commitments and contingencies Stockholders’ Equity Common stock: Class A, voting, $ 0.15 par value ( 170,000,000 shares authorized; 170,000,000 shares issued) 25 25 Class B, nonvoting, $ 0.15 par value ( 400,000,000 shares authorized; 314,532,000 shares issued) 47 47 Additional paid-in capital 13 36 Retained earnings 4,261 4,710 Accumulated other comprehensive income (loss), net of tax ( 221 ) ( 220 ) Treasury stock, at cost ( 11,932,000 and 11,863,000 shares in 2024 and 2025, respectively) ( 608 ) ( 605 ) Total stockholders’ equity 3,517 3,993 Total liabilities and stockholders’ equity $ 8,166 $ 8,086 The accompanying notes are an integral part of the consolidated financial statements.
Brown-Forman Corporation and Subsidiaries Consolidated Statements of Cash Flows (Dollars in millions) Year Ended April 30, 2023 2024 2025 Cash flows from operating activities: Net income $ 783 $ 1,024 $ 869 Adjustments to reconcile net income to net cash provided by operations: Gain on business divestitures — ( 267 ) — Equity method investment income and gain on sale — — ( 83 ) Asset impairment charges 96 7 49 Depreciation and amortization 80 87 87 Stock-based compensation expense 18 25 28 Deferred income tax provision (benefit) ( 3 ) 18 ( 39 ) Change in fair value of contingent consideration — 9 ( 43 ) Other, net 18 7 ( 17 ) Changes in assets and liabilities, net of business acquisitions and divestitures: Accounts receivable ( 21 ) 88 ( 70 ) Inventories ( 403 ) ( 349 ) ( 64 ) Other current assets 4 23 ( 25 ) Accounts payable and accrued expenses 77 ( 31 ) ( 40 ) Accrued income taxes ( 57 ) 17 ( 13 ) Other operating assets and liabilities 48 ( 11 ) ( 41 ) Cash provided by operating activities 640 647 598 Cash flows from investing activities: Proceeds from business divestitures — 246 — Proceeds from sale of equity method investment — — 350 Business acquisitions, net of cash acquired ( 1,195 ) — — Additions to property, plant, and equipment ( 183 ) ( 228 ) ( 167 ) Other, net 23 31 66 Cash provided by (used for) investing activities ( 1,355 ) 49 249 Cash flows from financing activities: Proceeds from short-term borrowings, maturities greater than 90 days 600 — — Repayments of short-term borrowings, maturities greater than 90 days ( 600 ) — — Net change in other short-term borrowings 234 192 ( 117 ) Repayment of long-term debt ( 250 ) — ( 300 ) Proceeds from long-term debt 648 — — Acquisition of treasury stock — ( 400 ) — Dividends paid ( 378 ) ( 404 ) ( 420 ) Other, net ( 15 ) ( 6 ) ( 6 ) Cash provided by (used for) financing activities 239 ( 618 ) ( 843 ) Effect of exchange rate changes on cash, cash equivalents, and restricted cash ( 14 ) ( 6 ) 3 Net increase (decrease) in cash, cash equivalents, and restricted cash ( 490 ) 72 7 Cash, cash equivalents, and restricted cash at beginning of period 874 384 456 Cash, cash equivalents, and restricted cash at end of period 384 456 463 Less: Restricted cash (included in other current assets) at end of period ( 10 ) ( 10 ) ( 19 ) Cash and cash equivalents at end of period $ 374 $ 446 $ 444 The accompanying notes are an integral part of the consolidated financial statements.
Brown-Forman Corporation and Subsidiaries Consolidated Statements of Cash Flows (Dollars in millions) Year Ended April 30, 2023 2024 2025 Supplemental information: Cash paid for interest $ 85 $ 125 $ 119 Cash paid for income taxes $ 278 $ 242 $ 303 Non-cash additions to property, plant, and equipment $ 27 $ 20 $ 14 The accompanying notes are an integral part of the consolidated financial statements.
Brown-Forman Corporation and Subsidiaries Consolidated Statements of Stockholders’ Equity (Dollars in millions, except per share amounts) Class A Common Stock Class B Common Stock Additional Paid-in Capital Retained Earnings AOCI Treasury Stock Total Balance at April 30, 2022 $ 25 $ 47 $ — $ 3,242 $ ( 352 ) $ ( 225 ) $ 2,737 Net income 783 783 Net other comprehensive income (loss) 117 117 Cash dividends ($ 0.7880 per share) ( 378 ) ( 378 ) Stock-based compensation expense 18 18 Stock issued under compensation plans 12 12 Loss on treasury stock issued under compensation plans ( 17 ) ( 4 ) ( 21 ) Balance at April 30, 2023 25 47 1 3,643 ( 235 ) ( 213 ) 3,268 Net income 1,024 1,024 Net other comprehensive income (loss) 14 14 Cash dividends ($ 0.8466 per share) ( 404 ) ( 404 ) Acquisition of treasury stock ( 404 ) ( 404 ) Stock-based compensation expense 25 25 Stock issued under compensation plans 9 9 Loss on treasury stock issued under compensation plans ( 13 ) ( 2 ) ( 15 ) Balance at April 30, 2024 25 47 13 4,261 ( 221 ) ( 608 ) 3,517 Net income 869 869 Net other comprehensive income (loss) 1 1 Cash dividends ($ 0.8886 per share) ( 420 ) ( 420 ) Stock-based compensation expense 28 28 Stock issued under compensation plans 3 3 Loss on treasury stock issued under compensation plans ( 5 ) ( 5 ) Balance at April 30, 2025 $ 25 $ 47 $ 36 $ 4,710 $ ( 220 ) $ ( 605 ) $ 3,993 The accompanying notes are an integral part of the consolidated financial statements.
Brown-Forman Corporation and Subsidiaries Notes to Consolidated Financial Statements (Dollars and other currency amounts in millions, except per share data) 1.
The allowance for doubtful accounts was $ 8 and $ 7 at April 30, 2024 and 2025, respectively.
Approximately 50 % of our consolidated inventories are valued using the last-in, first-out (LIFO) cost method, which we use for the majority of our U.S. inventories.
If we had used the FIFO method for all inventories, they would have been $ 512 and $ 600 higher than reported at April 30, 2024 and 2025, respectively.
Considerable management judgment is necessary to estimate fair value, including the selection of assumptions about future cash flows, net sales, discount rates, and royalty rates.
Reclassifications : Certain prior year amounts have been reclassified to conform with the current year’s presentation.
In November 2023, the Financial Accounting Standards Board (FASB) issued an updated accounting standard requiring additional disclosures about significant segment expenses and other segment items.
We adopted the updated standard as of April 30, 2025 (Note 20).
Adoption had no material impact on our consolidated financial statements.
In December 2023, the FASB issued an updated accounting standard requiring additional disclosures about income taxes, primarily related to the rate reconciliation and information about income taxes paid.
We are required to adopt the new guidance beginning in fiscal 2026.
In November 2024, the FASB issued an updated accounting standard requiring disaggregation, in the notes to the financial statements, of expense line items in the income statement that include certain categories of expenses.
We are required to adopt the updated standard for annual disclosures beginning in fiscal 2028, and for interim disclosures in fiscal 2029, with earlier adoption permitted.
We are currently evaluating the impact that adopting these accounting standards updates will have on our disclosures. 2.

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