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United States
Securities and Exchange Commission
Washington, D.C. 20549

FORM 10-Q
(Mark One)
☑QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
For the quarterly period ended October 31, 2024
OR
☐TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
For the transition period from _______________ to _______________

Commission File No. 001-00123

Brown-Forman Corporation
(Exact name of Registrant as specified in its Charter)
Delaware61-0143150
(State or other jurisdiction of(IRS Employer
incorporation or organization)Identification No.)
 
850 Dixie Highway 
Louisville,Kentucky40210
(Address of principal executive offices)(Zip Code)
(502) 585-1100
(Registrant’s telephone number, including area code)
N/A
(Former name, former address and former fiscal year, if changed since last report)
Securities registered pursuant to Section 12(b) of the Act:
Title of each classTrading Symbol(s)Name of each exchange on which registered
Class A Common Stock (voting), $0.15 par valueBFANew York Stock Exchange
Class B Common Stock (nonvoting), $0.15 par valueBFBNew York Stock Exchange
1.200% Notes due 2026BF26New York Stock Exchange
2.600% Notes due 2028BF28New York Stock Exchange
Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.  Yes þ   No o
Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T during the preceding 12 months (or for such shorter period that the registrant was required to submit such files).  Yes þ   No o
Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and “emerging growth company” in Rule 12b-2 of the Exchange Act.
Large accelerated filer☑Accelerated filer☐
Non-accelerated filer☐Smaller reporting company☐
Emerging growth company☐
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ¨
Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).
Yes  ☐   No  ☑
Indicate the number of shares outstanding of each of the issuer’s classes of common stock, as of the latest practicable date: November 30, 2024
Class A Common Stock (voting), $0.15 par value169,123,305 
Class B Common Stock (nonvoting), $0.15 par value303,537,999 




2

PART I - FINANCIAL INFORMATION
 
Item 1. Financial Statements (Unaudited)


BROWN-FORMAN CORPORATION AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(Unaudited)
(Dollars in millions, except per share amounts)

Three Months EndedSix Months Ended
October 31,October 31,
2023202420232024
Sales$1,405 $1,376 $2,731 $2,587 
Excise taxes298 281 586 541 
Net sales1,107 1,095 2,145 2,046 
Cost of sales436 449 823 835 
Gross profit671 646 1,322 1,211 
Advertising expenses140 126 271 252 
Selling, general, and administrative expenses192 187 392 375 
Other expense (income), net— (8)(7)(38)
Operating income339 341 666 622 
Non-operating postretirement expense— 1 1 1 
Interest income(2)(3)(4)(7)
Interest expense31 32 60 64 
Equity method investment income
— (2)— (2)
Income before income taxes310 313 609 566 
Income taxes68 55 136 113 
Net income$242 $258 $473 $453 
Earnings per share:
Basic$0.50 $0.55 $0.99 $0.96 
Diluted$0.50 $0.55 $0.98 $0.96 
See notes to the condensed consolidated financial statements.
3

BROWN-FORMAN CORPORATION AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME
(Unaudited)
(Dollars in millions)
 
Three Months EndedSix Months Ended
October 31,October 31,
2023202420232024
Net income$242 $258 $473 $453 
Other comprehensive income (loss), net of tax:
Currency translation adjustments(104)(26)(65)(68)
Cash flow hedge adjustments12 (1)7 (3)
Postretirement benefits adjustments1 — 3 1 
Net other comprehensive income (loss)(91)(27)(55)(70)
Comprehensive income$151 $231 $418 $383 
See notes to the condensed consolidated financial statements.
4

BROWN-FORMAN CORPORATION AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS
(Unaudited)
(Dollars in millions, except per share amounts)
April 30, 2024October 31,
2024
Assets
Cash and cash equivalents$446 $416 
Accounts receivable, less allowance for doubtful accounts of $8 at April 30 and $9 at October 31
769 954 
Inventories:
Barreled whiskey1,490 1,563 
Finished goods452 438 
Work in process396 376 
Raw materials and supplies218 188 
Total inventories2,556 2,565 
Other current assets265 261 
Total current assets4,036 4,196 
Property, plant and equipment, net1,074 1,060 
Goodwill1,455 1,468 
Other intangible assets990 1,000 
Equity method investments
270 272 
Deferred tax assets69 60 
Other assets272 276 
Total assets$8,166 $8,332 
Liabilities
Accounts payable and accrued expenses$793 $695 
Accrued income taxes38 46 
Short-term borrowings428 512 
Current portion of long-term debt300 300 
Total current liabilities1,559 1,553 
Long-term debt2,372 2,391 
Deferred tax liabilities315 290 
Accrued pension and other postretirement benefits160 159 
Other liabilities243 234 
Total liabilities4,649 4,627 
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 capital13 21 
Retained earnings4,261 4,508 
Accumulated other comprehensive income (loss), net of tax(221)(291)
Treasury stock, at cost (11,932,000 and 11,871,000 shares at April 30 and October 31, respectively)
(608)(605)
Total stockholders’ equity3,517 3,705 
Total liabilities and stockholders’ equity$8,166 $8,332 
 See notes to the condensed consolidated financial statements.
5

BROWN-FORMAN CORPORATION AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(Unaudited)
(Dollars in millions)
Six Months Ended
October 31,
 20232024
Cash flows from operating activities:  
Net income$473 $453 
Adjustments to reconcile net income to net cash provided by operations: 
Depreciation and amortization41 44 
Stock-based compensation expense11 13 
Deferred income tax benefit
(15)(12)
Change in fair value of contingent consideration(2)5 
Equity method investment income
— (2)
Other, net— (10)
Changes in assets and liabilities:
Accounts receivable(103)(194)
Inventories(337)(76)
Other current assets46 (2)
Accounts payable and accrued expenses(31)(70)
Accrued income taxes16 6 
Other operating assets and liabilities(2)(26)
Cash provided by operating activities97 129 
Cash flows from investing activities:  
Additions to property, plant, and equipment(79)(72)
Proceeds from sale of assets
13 51 
Other, net5 — 
Cash used for investing activities
(61)(21)
Cash flows from financing activities:  
Net change in short-term borrowings220 83 
Payments of withholding taxes related to stock-based awards(4)(2)
Acquisition of treasury stock(42)— 
Dividends paid(197)(206)
Other, net— (4)
Cash used for financing activities
(23)(129)
Effect of exchange rate changes on cash, cash equivalents, and restricted cash(7)(9)
Net increase (decrease) in cash, cash equivalents, and restricted cash
6 (30)
Cash, cash equivalents, and restricted cash at beginning of period384 456 
Cash, cash equivalents, and restricted cash at end of period390 426 
Less: Restricted cash (included in other current assets) at end of period(10)(10)
Less: Cash included in assets held for sale at end of period(7)— 
Cash and cash equivalents at end of period$373 $416 
Supplemental information:
Non-cash additions to property, plant and equipment$15 $8 
Right-of-use assets obtained in exchange for new lease obligations$24 $20 
See notes to the condensed consolidated financial statements.
6

BROWN-FORMAN CORPORATION AND SUBSIDIARIES
NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
(Unaudited)

In these notes, “we,” “us,” “our,” “Brown-Forman,” and the “Company” refer to Brown-Forman Corporation and its consolidated subsidiaries, collectively.
1.    Condensed Consolidated Financial Statements 
We prepared the accompanying unaudited condensed consolidated financial statements pursuant to the rules and regulations of the U.S. Securities and Exchange Commission for interim financial information. In accordance with those rules and regulations, we condensed or omitted certain information and disclosures normally included in annual financial statements prepared in accordance with U.S. generally accepted accounting principles (GAAP). In our opinion, the accompanying financial statements include all adjustments, consisting only of normal recurring adjustments (unless otherwise indicated), necessary for a fair statement of our financial results for the periods presented in these financial statements. The results for interim periods are not necessarily indicative of future or annual results.

We suggest that you read these condensed financial statements together with the financial statements and footnotes included in our Annual Report on Form 10-K for the fiscal year ended April 30, 2024 (2024 Form 10-K). We prepared the accompanying financial statements on a basis that is substantially consistent with the accounting principles applied in our 2024 Form 10-K.

Accounting standards not yet adopted. 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. The update also requires interim disclosure of segment information that is currently required only on an annual basis. We are required to adopt the updated standard for annual disclosures beginning in fiscal 2025, and for interim disclosures in fiscal 2026, with earlier adoption permitted. The update is to be applied retroactively.

In December 2023, the FASB issued an updated accounting standard requiring additional annual 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, with earlier adoption permitted. The update can be applied either prospectively or retrospectively.

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. The update can be applied either prospectively or retrospectively.

We are currently evaluating the impact that adopting these accounting standards updates will have on our disclosures.

2.    Earnings Per Share 
We calculate basic earnings per share by dividing net income available to common stockholders by the weighted average number of common shares outstanding during the period. Diluted earnings per share further includes the dilutive effect of stock-based compensation awards. We calculate that dilutive effect using the “treasury stock method” (as defined by GAAP).

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The following table presents information concerning basic and diluted earnings per share:
Three Months EndedSix Months Ended
October 31,October 31,
(Dollars in millions, except per share amounts)2023202420232024
Net income available to common stockholders$242 $258 $473 $453 
Share data (in thousands):  
Basic average common shares outstanding479,200 472,660 479,262 472,647 
Dilutive effect of stock-based awards915 397 972 350 
Diluted average common shares outstanding480,115 473,057 480,234 472,997 
Basic earnings per share$0.50 $0.55 $0.99 $0.96 
Diluted earnings per share$0.50 $0.55 $0.98 $0.96 

We excluded common stock-based awards for approximately 1,688,000 shares and 3,018,000 shares from the calculation of diluted earnings per share for the three months ended October 31, 2023 and 2024, respectively. We excluded common stock-based awards for approximately 1,486,000 shares and 2,800,000 shares from the calculation of diluted earnings per share for the six months ended October 31, 2023 and 2024, respectively. We excluded those awards because they were not dilutive for those periods under the treasury stock method.

3.    Inventories
We value some of our consolidated inventories, including most of our U.S. inventories, at the lower of cost, using the last-in, first-out (LIFO) method or market value. If the LIFO method had not been used, inventories at current cost would have been $512 million higher than reported as of April 30, 2024, and $552 million higher than reported as of October 31, 2024. Changes in the LIFO valuation reserve for interim periods are based on an allocation of the projected change for the entire fiscal year, recognized proportionately over the remainder of the fiscal year.

4.    Goodwill and Other Intangible Assets
The following table shows the changes in goodwill (which includes no accumulated impairment losses) and other intangible assets during the six months ended October 31, 2024:
(Dollars in millions)Goodwill
Other Intangible Assets
Balance at April 30, 2024
$1,455 $990 
Foreign currency translation adjustment13 10 
Balance at October 31, 2024
$1,468 $1,000 

Our other intangible assets consist of trademarks and brand names, all with indefinite useful lives.

5.    Equity Method Investments
Our equity method investments include a 21.4% ownership of the common stock of The Duckhorn Portfolio, Inc. (“Duckhorn”), which we obtained as partial consideration for our sale of the Sonoma-Cutrer wine business to Duckhorn on April 30, 2024. Our other equity method investments are immaterial.

The carrying amount of our investment in Duckhorn was $267 million as of April 30, 2024, reflecting the fair value of the common stock, based on its quoted market price at the April 30, 2024 closing date of the transaction. The carrying amount as of October 31, 2024, was $269 million, which includes the initial carrying amount of $267 million and $2 million subsequently recognized for our share of Duckhorn’s earnings.

The difference between the carrying amount of the investment and our proportionate share of the net assets of Duckhorn was not material as of both April 30, 2024, and October 31, 2024. As of October 31, 2024, the fair value of the investment was $346 million.

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In connection with our sale of the Sonoma-Cutrer wine business to Duckhorn, we agreed to a lock-up provision under which we are restricted from selling or otherwise disposing of our equity investment in Duckhorn. The restriction period will terminate no later than October 31, 2025.

Also, effective April 30, 2024, we entered into a transition services agreement (TSA) with Duckhorn related to the sale of the Sonoma-Cutrer wine business. Our cost of sales for the three months and six months ended October 31, 2024, included $2 million and $24 million, respectively, for Sonoma-Cuter products purchased from Duckhorn under the TSA. Fees earned for transition services provided to Duckhorn under the TSA were immaterial. Services related to the TSA ended on or about August 31, 2024.

On October 6, 2024, Duckhorn entered into a definitive agreement pursuant to which Duckhorn will be acquired by private equity funds. Under the terms of the agreement, upon completion of the proposed transaction, we would receive cash of $350 million in exchange for our 21.4% ownership interest in Duckhorn. The completion of the transaction, which is expected to occur by April 30, 2025, is subject to customary closing conditions, including approval by Duckhorn’s stockholders.

6.    Contingencies
We operate in a litigious environment, and we are sued in the normal course of business. Sometimes plaintiffs seek substantial damages. Significant judgment is required in predicting the outcome of these suits and claims, many of which take years to adjudicate. We accrue estimated costs for a contingency when we believe that a loss is probable and we can make a reasonable estimate of the loss, and then adjust the accrual as appropriate to reflect changes in facts and circumstances. We do not believe it is reasonably possible that these existing loss contingencies, individually or in the aggregate, would have a material adverse effect on our financial position, results of operations, or liquidity. No material accrued loss contingencies were recorded as of October 31, 2024.

7.    Debt
Our long-term debt (net of unamortized discount and issuance costs) consisted of:
(Principal and carrying amounts in millions)April 30, 2024October 31,
2024
3.50% senior notes, $300 principal amount, due April 15, 2025
$300 $300 
1.20% senior notes, €300 principal amount, due July 7, 2026
321 325 
2.60% senior notes, £300 principal amount, due July 7, 2028
375 388 
4.75% senior notes, $650 principal amount, due April 15, 2033
643 644 
4.00% senior notes, $300 principal amount, due April 15, 2038
295 296 
3.75% senior notes, $250 principal amount, due January 15, 2043
248 248 
4.50% senior notes, $500 principal amount, due July 15, 2045
490 490 
2,672 2,691 
Less current portion300 300 
$2,372 $2,391 
Our short-term borrowings consisted of borrowings under our commercial paper program, as follows:
(Dollars in millions)April 30, 2024October 31,
2024
Commercial paper (par amount)$429$514
Average interest rate5.49%4.93%
Average remaining days to maturity1224


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8.    Stockholders’ Equity
The following table shows the changes in stockholders’ equity by quarter during the six months ended October 31, 2023:
(Dollars in millions)
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 income231 231 
Net other comprehensive income (loss)36 36 
Declaration of cash dividends (197)(197)
Stock-based compensation expense4 4 
Stock issued under compensation plans3 3 
Loss on issuance of treasury stock issued under compensation plans(4)(3)(7)
Balance at July 31, 2023
25 47 1 3,674 (199)(210)3,338 
Net income242 242 
Net other comprehensive income (loss)(91)(91)
Acquisition of treasury stock(42)(42)
Stock-based compensation expense7 7 
Balance at October 31, 2023
$25 $47 $8 $3,916 $(290)$(252)$3,454 

The following table shows the changes in stockholders’ equity by quarter during the six months ended October 31, 2024:
(Dollars in millions)
Class A Common Stock
Class B Common Stock
Additional Paid-in Capital
Retained Earnings
AOCI
Treasury Stock
Total
Balance at April 30, 2024$25 $47 $13 $4,261 $(221)$(608)$3,517 
Net income195 195 
Net other comprehensive income (loss)(43)(43)
Declaration of cash dividends(206)(206)
Stock-based compensation expense4 4 
Stock issued under compensation plans3 3 
Loss on issuance of treasury stock issued under compensation plans(5)(5)
Balance at July 31, 202425 47 12 4,250 (264)(605)3,465 
Net income258 258 
Net other comprehensive income (loss)(27)(27)
Stock-based compensation expense9 9 
Balance at October 31, 2024$25 $47 $21 $4,508 $(291)$(605)$3,705 

The following table shows the change in each component of accumulated other comprehensive income (AOCI), net of tax, during the six months ended October 31, 2024:
(Dollars in millions)
Currency Translation Adjustments
Cash Flow Hedge Adjustments
Postretirement Benefits Adjustments
Total AOCI
Balance at April 30, 2024
$(111)$10 $(120)$(221)
Net other comprehensive income (loss)(68)(3)1 (70)
Balance at October 31, 2024
$(179)$7 $(119)$(291)

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The following table shows the cash dividends declared per share on our Class A and Class B common stock during the six months ended October 31, 2024:
Declaration DateRecord DatePayable DateAmount per Share
May 23, 2024June 7, 2024July 1, 2024$0.2178
July 25, 2024September 3, 2024October 1, 2024$0.2178
On November 21, 2024, our Board of Directors increased the quarterly cash dividend on our Class A and Class B common stock from $0.2178 to $0.2265 per share. The quarterly cash dividend is payable on January 2, 2025, to stockholders of record on December 6, 2024.

9.    Net Sales 
The following table shows our net sales by geography:
Three Months EndedSix Months Ended
October 31,October 31,
(Dollars in millions)2023202420232024
United States
$531 $489 $973 $908 
Developed International1
291 289 600 569 
Emerging2
221 242 442 427 
Travel Retail3
44 45 90 86 
Non-branded and bulk4
20 30 40 56 
Total$1,107 $1,095 $2,145 $2,046 
1Represents net sales of branded products to “advanced economies” as defined by the International Monetary Fund (IMF), excluding the United States. Our top developed international markets are Germany, Australia, the United Kingdom, France, Canada, and Spain.
2Represents net sales of branded products to “emerging and developing economies” as defined by the IMF. Our top emerging markets are Mexico, Poland, and Brazil.
3Represents net sales of branded products to global duty-free customers, other travel retail customers, and the U.S. military, regardless of customer location.
4Includes net sales of used barrels, contract bottling services, and non-branded bulk whiskey, regardless of customer location.

The following table shows our net sales by product category:
Three Months EndedSix Months Ended
October 31,October 31,
(Dollars in millions)2023202420232024
Whiskey1
$739 $769 $1,436 $1,428 
Ready-to-Drink2
132 133 270 254 
Tequila3
81 72 162 134 
Non-branded and bulk4
20 30 40 56 
Rest of portfolio5
135 91 237 174 
Total$1,107 $1,095 $2,145 $2,046 
1Includes all whiskey spirits and whiskey-based flavored liqueurs. The brands included in this category are the Jack Daniel's family of brands (excluding the “ready-to-drink” products outlined below), the Woodford Reserve family of brands, the Old Forester family of brands, The GlenDronach, Benriach, Glenglassaugh, Slane Irish Whiskey, and Coopers’ Craft.
2Includes the Jack Daniel’s ready-to-drink (RTD) and ready-to-pour (RTP) products, New Mix, and other RTD/RTP products.
3Includes el Jimador, the Herradura family of brands, and other tequilas.
4Includes net sales of used barrels, contract bottling services, and non-branded bulk whiskey.
5Includes Sonoma-Cutrer (which was divested on April 30, 2024), Korbel California Champagnes, Diplomático, Gin Mare, Chambord, Finlandia Vodka (which was divested on November 1, 2023), Fords Gin, and Korbel Brandy.
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10.    Pension Costs
The following table shows the components of the net cost recognized for our U.S. pension plans. Similar information for other defined benefit plans is not presented due to immateriality.
Three Months EndedSix Months Ended
October 31,October 31,
(Dollars in millions)2023202420232024
Service cost$5 $4 $9 $8 
Interest cost8 9 17 18 
Expected return on plan assets(10)(10)(19)(19)
Amortization of net actuarial loss2 1 3 1 
Net cost$5 $4 $10 $8 

11.    Income Taxes
Our consolidated interim effective tax rate is based on our expected annual operating income, statutory tax rates, and income tax laws in the various jurisdictions where we operate. Significant or unusual items, including adjustments to accruals for tax uncertainties, are recognized in the fiscal quarter in which the related event or a change in judgment occurs. The effective tax rate on ordinary income for the full fiscal year is expected to be 21.8%, which is higher than the U.S. federal statutory rate of 21.0%, due to the impact of state taxes and the tax effects of foreign operations, partially offset by the beneficial impact of the foreign-derived intangible income deduction.

The effective tax rate of 20.1% for the six months ended October 31, 2024, was lower than the expected tax rate of 21.8% on ordinary income for the full fiscal year ending April 30, 2025, primarily due to the beneficial impact of state income tax refunds related to amended prior year returns, partially offset by the impact of increased valuation allowances in the current period. The effective tax rate of 20.1% for the six months ended October 31, 2024, was lower than the effective tax rate of 22.4% for the same period last year, primarily due to the beneficial impact of state income tax refunds related to amended prior year returns and the absence of an unfavorable tax rate change in the prior fiscal year, partially offset by the impact of increased valuation allowances in the current period.

The OECD (Organization for Economic Co-operation and Development) 15% global minimum tax under the Pillar Two Model Rules, which is now effective in countries with enacted legislation, did not materially impact our financial results in the six months ended October 31, 2024. We will continue to evaluate the impact in future periods as previously-enacting countries issue related guidance and additional countries consider adoption of the global minimum tax rules.

12.    Derivative Financial Instruments and Hedging Activities
We are subject to market risks, including the effect of fluctuations in foreign currency exchange rates, commodity prices, and interest rates. We use derivatives to help manage financial exposures that occur in the normal course of business. We formally document the purpose of each derivative contract, which includes linking the contract to the financial exposure it is designed to mitigate. We do not hold or issue derivatives for trading or speculative purposes.

We use currency derivative contracts to limit our exposure to the foreign currency exchange rate risk that we cannot mitigate internally by using netting strategies. We designate most of these contracts as cash flow hedges of forecasted transactions (expected to occur within two years). We record all changes in the fair value of cash flow hedges in AOCI until the underlying hedged transaction occurs, at which time we reclassify that amount to earnings.

Some of our currency derivatives are not designated as hedges because we use them to partially offset the immediate earnings impact of changes in foreign currency exchange rates on existing assets or liabilities. We immediately recognize the change in fair value of these contracts in earnings.

We had outstanding currency derivatives, related primarily to our euro, British pound, and Australian dollar exposures, with notional amounts for all hedged currencies totaling $566 million at April 30, 2024, and $515 million at October 31, 2024. The maximum term of outstanding derivative contracts was 24 months at both April 30, 2024 and October 31, 2024.

We also use foreign currency-denominated debt instruments to help manage our foreign currency exchange rate risk. We designate a portion of those debt instruments as net investment hedges, which are intended to mitigate foreign currency
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exposure related to non-U.S. dollar net investments in certain foreign subsidiaries. Any change in value of the designated portion of the hedging instruments is recorded in AOCI, offsetting the foreign currency translation adjustment of the related net investments that is also recorded in AOCI. The amount of foreign currency-denominated debt instruments designated as net investment hedges was $497 million at April 30, 2024, and $512 million at October 31, 2024.

At inception, we expect each financial instrument designated as a hedge to be highly effective in offsetting the financial exposure it is designed to mitigate. We assess the effectiveness of our hedges continually. If we determine that any financial instruments designated as hedges are no longer highly effective, we discontinue hedge accounting for those instruments.

We use forward purchase contracts with suppliers to protect against corn price volatility. We expect to take physical delivery of the corn underlying each contract and use it for production over a reasonable period of time. Accordingly, we account for these contracts as normal purchases rather than as derivative instruments.

The following table presents the pre-tax impact that changes in the fair value of our derivative instruments and non-derivative hedging instruments had on AOCI and earnings:
Three Months Ended
October 31,
(Dollars in millions)Classification20232024
Derivative Instruments
Currency derivatives designated as cash flow hedges:   
Net gain (loss) recognized in AOCIn/a$21 $(2)
Net gain (loss) reclassified from AOCI into earningsSales5 (1)
Currency derivatives not designated as hedging instruments:   
Net gain (loss) recognized in earningsSales$4 $1 
Net gain (loss) recognized in earningsOther income (expense), net(1)(2)
Non-Derivative Hedging Instruments
Foreign currency-denominated debt designated as net investment hedge:
Net gain (loss) recognized in AOCIn/a$26 $(6)
Total amounts presented in the accompanying condensed consolidated statements of operations for line items affected by the net gains (losses) shown above:
Sales$1,405 $1,376 
Other income (expense), net— 8 
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Six Months Ended
October 31,
(Dollars in millions)Classification20232024
Derivative Instruments
Currency derivatives designated as cash flow hedges:   
Net gain (loss) recognized in AOCIn/a$17 $(1)
Net gain (loss) reclassified from AOCI into earningsSales8 3 
Currency derivatives not designated as hedging instruments:   
Net gain (loss) recognized in earningsSales$2 $— 
Net gain (loss) recognized in earningsOther income (expense), net6 (6)
Non-Derivative Hedging Instruments
Foreign currency-denominated debt designated as net investment hedge:
Net gain (loss) recognized in AOCIn/a$17 $(15)
Total amounts presented in the accompanying condensed consolidated statements of operations for line items affected by the net gains (losses) shown above:
Sales$2,731 $2,587 
Other income (expense), net7 38 

We expect to reclassify $4 million of deferred net gains on cash flow hedges recorded in AOCI as of October 31, 2024 to earnings during the next 12 months. This reclassification would offset the anticipated earnings impact of the underlying hedged exposures. The actual amounts that we ultimately reclassify to earnings will depend on the exchange rates in effect when the underlying hedged transactions occur.

The following table presents the fair values of our derivative instruments:
April 30, 2024October 31, 2024
(Dollars in millions)
Classification
Derivative Assets
Derivative Liabilities
Derivative Assets
Derivative Liabilities
Designated as cash flow hedges:
Currency derivativesOther current assets$11 $(2)$8 $(3)
Currency derivativesOther assets1 (1)1 — 
Not designated as hedges:
Currency derivativesAccrued expenses— (1)— (1)

The fair values reflected in the above table are presented on a gross basis. However, as discussed further below, the fair values of those instruments subject to net settlement agreements are presented on a net basis in our balance sheets.

In our statements of cash flows, we classify cash flows related to cash flow hedges in the same category as the cash flows from the hedged items.

Credit risk. We are exposed to credit-related losses if the counterparties to our derivative contracts default. This credit risk is limited to the fair value of the contracts. To manage this risk, we contract only with major financial institutions that have investment-grade credit ratings and with whom we have standard International Swaps and Derivatives Association (ISDA) agreements that allow for net settlement of the derivative contracts. Also, we have established counterparty credit guidelines that we monitor regularly, and we monetize contracts when we believe it is warranted. Because of these safeguards, we believe we have no derivative positions that warrant credit valuation adjustments.

Our derivative instruments require us to maintain a specific level of creditworthiness, which we have maintained. If our creditworthiness were to fall below that level, then the counterparties to our derivative instruments could request immediate payment or collateralization for derivative instruments in net liability positions. The aggregate fair value of our derivatives with
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creditworthiness requirements that were in a net liability position was $1 million at April 30, 2024, and $1 million at October 31, 2024.

Offsetting. As noted above, our derivative contracts are governed by ISDA agreements that allow for net settlement of derivative contracts with the same counterparty. It is our policy to present the fair values of current derivatives (that is, those with a remaining term of 12 months or less) with the same counterparty on a net basis in our balance sheets. Similarly, we present the fair values of noncurrent derivatives with the same counterparty on a net basis. We do not net current derivatives with noncurrent derivatives in our balance sheets.

The following table summarizes the gross and net amounts of our derivative contracts:
(Dollars in millions)
Gross Amounts of Recognized Assets (Liabilities)
Gross Amounts Offset in Balance Sheet
Net Amounts Presented in Balance Sheet
Gross Amounts Not Offset in Balance Sheet
Net Amounts
April 30, 2024
Derivative assets$12 $(3)$9 $— $9 
Derivative liabilities(4)3 (1)— (1)
October 31, 2024
Derivative assets9 (3)6 — 6 
Derivative liabilities(4)3 (1)— (1)

No cash collateral was received or pledged related to our derivative contracts as of April 30, 2024, or October 31, 2024.

13.    Fair Value Measurements
The following table summarizes the assets and liabilities measured or disclosed at fair value on a recurring basis:
April 30, 2024October 31, 2024
 CarryingFairCarryingFair
(Dollars in millions)AmountValueAmountValue
Assets  
Cash and cash equivalents$446 $446 $416 $416 
Currency derivatives, net9 9 6 6 
Liabilities  
Currency derivatives, net1 1 1 1 
Contingent consideration
69 69 75 75 
Short-term borrowings428 428 512 512 
Long-term debt (including current portion)
2,672 2,468 2,691 2,547 

Fair value is defined as the exchange price that would be received for an asset or paid to transfer a liability in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants at the measurement date. We categorize the fair values of assets and liabilities into three levels based on the assumptions (inputs) used to determine those values. Level 1 provides the most reliable measure of fair value, while Level 3 generally requires significant management judgment. The three levels are:
•Level 1 – Quoted prices (unadjusted) in active markets for identical assets or liabilities.
•Level 2 – Observable inputs other than those included in Level 1, such as quoted prices for similar assets and liabilities in active markets; quoted prices for identical or similar assets and liabilities in inactive markets; or other inputs that are observable or can be derived from or corroborated by observable market data.
•Level 3 – Unobservable inputs supported by little or no market activity.

We determine the fair values of our currency derivatives (forward contracts) using standard valuation models. The significant inputs used in these models, which are readily available in public markets or can be derived from observable market transactions, include the applicable spot exchange rates, forward exchange rates, and interest rates. These fair value measurements are categorized as Level 2 within the valuation hierarchy.
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We determine the fair value of long-term debt primarily based on the prices at which identical or similar debt has recently traded in the market and also considering the overall market conditions on the date of valuation. These fair value measurements are categorized as Level 2 within the valuation hierarchy.

The fair values of cash, cash equivalents, and short-term borrowings approximate the carrying amounts due to the short maturities of these instruments.

We determine the fair value of our contingent consideration liability using a Monte Carlo simulation model, which requires the use of Level 3 inputs, such as projected future net sales, discount rates, and volatility rates. Changes in any of these Level 3 inputs could result in material changes to the fair value of the contingent consideration and could materially impact the amount of noncash expense (or income) recorded each reporting period.

The following table shows the changes in our contingent consideration liability during the six months ended October 31, 2024:
(Dollars in millions)
Balance at April 30, 2024$69 
Change in fair value1
5 
Foreign currency translation adjustment1 
Balance at October 31, 2024$75 
1Classified as “other expense (income), net” in the accompanying condensed consolidated statement of operations.

We measure some assets and liabilities at fair value on a nonrecurring basis. That is, we do not measure them at fair value on an ongoing basis, but we do adjust them to fair value in some circumstances (for example, when we determine that an asset is impaired). No material nonrecurring fair value measurements were required during the periods presented in these financial statements.

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14.    Other Comprehensive Income
The following table shows the components of net other comprehensive income (loss):
Three Months EndedThree Months Ended
October 31, 2023October 31, 2024
(Dollars in millions)Pre-TaxTaxNetPre-TaxTaxNet
Currency translation adjustments:
Net gain (loss) on currency translation$(98)$(6)$(104)$(27)$1 $(26)
Reclassification to earnings— — — — — — 
Other comprehensive income (loss), net(98)(6)(104)(27)1 (26)
Cash flow hedge adjustments:
Net gain (loss) on hedging instruments21 (5)16 (2)— (2)
Reclassification to earnings1
(5)1 (4)1 — 1 
Other comprehensive income (loss), net16 (4)12 (1)— (1)
Postretirement benefits adjustments:
Net actuarial gain (loss) and prior service cost— — — — — — 
Reclassification to earnings2
2 (1)1 — — — 
Other comprehensive income (loss), net2 (1)1 — — — 
Total other comprehensive income (loss), net$(80)$(11)$(91)$(28)$1 $(27)
Six Months EndedSix Months Ended
October 31, 2023October 31, 2024
(Dollars in millions)Pre-TaxTaxNetPre-TaxTaxNet
Currency translation adjustments:
Net gain (loss) on currency translation$(61)$(4)$(65)$(71)$3 $(68)
Reclassification to earnings— — — — — — 
Other comprehensive income (loss), net(61)(4)(65)(71)3 (68)
Cash flow hedge adjustments:
Net gain (loss) on hedging instruments17 (4)13 (1)— (1)
Reclassification to earnings1
(8)2 (6)(3)1 (2)
Other comprehensive income (loss), net9 (2)7 (4)1 (3)
Postretirement benefits adjustments:
Net actuarial gain (loss) and prior service cost— — — — — — 
Reclassification to earnings2
4 (1)3 1 — 1 
Other comprehensive income (loss), net4 (1)3 1 — 1 
Total other comprehensive income (loss), net$(48)$(7)$(55)$(74)$4 $(70)
1Pre-tax amount for each period is classified as sales in the accompanying condensed consolidated statements of operations.
2Pre-tax amount for each period is classified as non-operating postretirement expense in the accompanying condensed consolidated statements of operations.

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Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations
You should read the following discussion and analysis in conjunction with both our unaudited Condensed Consolidated Financial Statements and related notes included in Part I, Item 1 of this Quarterly Report and our Annual Report on Form 10-K for the fiscal year ended April 30, 2024 (2024 Form 10-K). Note that the results of operations for the six months ended October 31, 2024, are not necessarily indicative of future or annual results. In this Item, “we,” “us,” “our,” “Brown-Forman,” and the “Company” refer to Brown-Forman Corporation and its consolidated subsidiaries, collectively.

Presentation Basis
Non-GAAP Financial Measures
We report our financial results in accordance with U.S. generally accepted accounting principles (GAAP). Additionally, we use some financial measures in this report that are not measures of financial performance under GAAP. These non-GAAP measures, defined below, should be viewed as supplements to (not substitutes for) our results of operations and other measures reported under GAAP. Other companies may define or calculate these non-GAAP measures differently.
“Organic change” in measures of statements of operations. We present changes in certain measures, or line items, of the statements of operations that are adjusted to an “organic” basis. We use “organic change” for the following measures: (a) organic net sales; (b) organic cost of sales; (c) organic gross profit; (d) organic advertising expenses; (e) organic selling, general, and administrative (SG&A) expenses; (f) organic other expense (income), net; (g) organic operating expenses1; and (h) organic operating income. To calculate these measures, we adjust, as applicable, for (1) acquisitions and divestitures, (2) other items, and (3) foreign exchange. We explain these adjustments below.
•“Acquisitions and divestitures.” This adjustment removes (a) the gain or loss recognized on sale of divested brands and certain assets, (b) any non-recurring effects related to our acquisitions and divestitures (e.g., transaction, transition, and integration costs), (c) the effects of operating activity related to acquired and divested brands for periods not comparable year over year (non-comparable periods), and (d) fair value changes to contingent consideration liabilities. Excluding non-comparable periods allows us to include the effects of acquired and divested brands only to the extent that results are comparable year over year.
During fiscal 2023, we acquired Gin Mare Brand, S.L.U. and Mareliquid Vantguard, S.L.U., which owned the Gin Mare brand (Gin Mare). This adjustment removes the fair value adjustments to Gin Mare’s earn-out contingent consideration liability that is payable in cash no earlier than July 2024 and no later than July 2027.
During fiscal 2024, we sold our Finlandia vodka business, which resulted in a pre-tax gain of $92 million, and entered into a related transition services agreement (TSA) for this business. This adjustment removes the (a) transaction costs related to the divestiture, (b) operating activity for the non-comparable period, which is activity in the first and second quarters of fiscal 2024, and (c) net sales, cost of sales, and operating expenses1 recognized pursuant to the TSA related to distribution services in certain markets.
During fiscal 2024, we sold the Sonoma-Cutrer wine business in exchange for an ownership percentage of 21.4% in The Duckhorn Portfolio Inc. (Duckhorn) along with $50 million cash and entered into a related TSA for this business. This transaction resulted in a pre-tax gain of $175 million. This adjustment removes the (a) transaction costs related to the divestiture, (b) operating activity for the non-comparable period, which is activity in the first and second quarters of fiscal 2024, and (c) net sales, cost of sales, and operating expenses1 recognized pursuant to the TSA related to distribution services in certain markets.
During the second quarter of fiscal 2024, we recognized a gain of $7 million on the sale of certain fixed assets. During the first quarter of fiscal 2025, we recognized a gain of $12 million on the sale of the Alabama cooperage. This adjustment removes the gains from our other expense (income), net and operating income.
We believe that these adjustments allow for us to better understand our organic results on a comparable basis.
•“Other items.” Other items include the additional items outlined below.
“Jack Daniel’s Country Cocktails business model change (JDCC).” In fiscal 2021, we entered into a partnership with the Pabst Brewing Company for the supply, sales, and distribution of Jack Daniel's Country Cocktails in the United States while Brown-Forman continued to produce certain products. During fiscal 2024, this production fully transitioned to Pabst Brewing Company for the Jack Daniel’s Country Cocktails products. This adjustment removes
1 Operating expenses include advertising expense, SG&A expense, and other expense (income), net.
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the non-comparable operating activity related to the sales of Brown-Forman-produced Jack Daniel’s Country Cocktails products for the first and second quarters of fiscal 2024 and fiscal 2025.
“Franchise tax refund.” During the first quarter of fiscal 2025, we recognized a $13 million franchise tax refund due to a change in franchise tax calculation methodology for the state of Tennessee. This modification lowered our annual franchise tax obligation and was retroactively applied to franchise taxes paid during fiscal 2020 through fiscal 2023. This adjustment removes the franchise tax refund from our other expense (income), net and operating income.
•“Foreign exchange.” We calculate the percentage change in certain line items of the statements of operations in accordance with GAAP and adjust to exclude the cost or benefit of currency fluctuations. Adjusting for foreign exchange allows us to understand our business on a constant-dollar basis, as fluctuations in exchange rates can distort the organic trend both positively and negatively. (In this report, “dollar” means the U.S. dollar unless stated otherwise.) To eliminate the effect of foreign exchange fluctuations when comparing across periods, we translate current-year results at prior-year rates and remove transactional and hedging foreign exchange gains and losses from current- and prior-year periods.
We use the non-GAAP measure “organic change,” along with other metrics, to: (a) understand our performance from period to period on a consistent basis; (b) compare our performance to that of our competitors; (c) calculate components of management incentive compensation; (d) plan and forecast; and (e) communicate our financial performance to the Board of Directors, stockholders, and investment community. We provide reconciliations of the “organic change” in certain line items of the statements of operations to their nearest GAAP measures in the tables under “Results of Operations - Fiscal 2025 Year-to-Date Highlights” and “Results of Operations - Year-Over-Year Period Comparisons.” We have consistently applied the adjustments within our reconciliations in arriving at each non-GAAP measure. We believe these non-GAAP measures are useful to readers and investors because they enhance the understanding of our historical financial performance and comparability between periods. When we provide guidance for organic change in certain measures of the statements of operations we do not provide guidance for the corresponding GAAP change, as the GAAP measure will include items that are difficult to quantify or predict with reasonable certainty, such as foreign exchange, which could have a significant impact to our GAAP income statement measures.

Definitions
Aggregations.
From time to time, to explain our results of operations or to highlight trends and uncertainties affecting our business, we aggregate markets according to stage of economic development as defined by the International Monetary Fund (IMF), and we aggregate brands by beverage alcohol category. Below, we define the geographic and brand aggregations used in this report.
Geographic Aggregations.
In “Results of Operations - Fiscal 2025 Year-to-Date Highlights,” we provide supplemental information for our top markets ranked by percentage of net sales. In addition to markets listed by country name, we include the following aggregations:
•“Developed International” markets are “advanced economies” as defined by the IMF, excluding the United States. Our top developed international markets were Germany, Australia, the United Kingdom, France, Canada, and Spain. This aggregation represents our net sales of branded products to these markets.
•“Spain” includes Spain and certain other surrounding territories.
•“Emerging” markets are “emerging and developing economies” as defined by the IMF. Our top emerging markets were Mexico, Poland, and Brazil. This aggregation represents our net sales of branded products to these markets.
•“Brazil” includes Brazil, Uruguay, Paraguay, and certain other surrounding territories.
•“Travel Retail” represents our net sales of branded products to global duty-free customers, other travel retail customers, and the U.S. military, regardless of customer location.
•“Non-branded and bulk” includes net sales of used barrels, contract bottling services, and non-branded bulk whiskey, regardless of customer location.


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Brand Aggregations.
In “Results of Operations - Fiscal 2025 Year-to-Date Highlights,” we provide supplemental information for our top brands ranked by percentage of net sales. In addition to brands listed by name, we include the following aggregations outlined below.
Beginning in fiscal 2025, we aggregated the “Wine” and “Vodka” product categories with “Rest of Portfolio,” due to the divestitures of Sonoma-Cutrer and Finlandia. Please refer to the new definition of "Rest of Portfolio” for more information. The fiscal 2024 "Rest of Portfolio" amounts have been adjusted accordingly for comparison purposes.
•“Whiskey” includes all whiskey spirits and whiskey-based flavored liqueurs. The brands included in this category are the Jack Daniel’s family of brands (excluding the “Ready-to-Drink” products defined below), the Woodford Reserve family of brands (Woodford Reserve), the Old Forester family of brands (Old Forester), The Glendronach, Glenglassaugh, Benriach, Slane Irish Whiskey, and Coopers’ Craft.
•“American whiskey” includes the Jack Daniel’s family of brands (excluding the “Ready-to-Drink” products defined below), Woodford Reserve, Old Forester, and Coopers’ Craft.
•“Super-premium American whiskey” includes Woodford Reserve, Gentleman Jack, and other super-premium Jack Daniel's expressions.
•“Ready-to-Drink” includes all ready-to-drink (RTD) and ready-to-pour (RTP) products. The brands included in this category are Jack Daniel’s RTD and RTP products (JD RTD/RTP), New Mix, and other RTD/RTP products.
•“Jack Daniel’s RTD/RTP” products include all RTD line extensions of Jack Daniel’s, such as Jack Daniel’s & Cola, Jack Daniel’s & Coca-Cola RTD, Jack Daniel’s Country Cocktails, Jack Daniel’s Double Jack, and other malt- and spirit-based Jack Daniel’s RTDs, along with Jack Daniel’s Winter Jack RTP.
•“Jack Daniel’s & Coca-Cola RTD” includes all Jack Daniel’s & Coca-Cola RTD products and Jack Daniel’s bulk whiskey shipments for the production of these products.
•“Tequila” includes el Jimador, the Herradura family of brands (Herradura), and other tequilas.
•“Rest of Portfolio” includes Sonoma-Cutrer (which was divested on April 30, 2024), Korbel California Champagnes, Diplomático, Gin Mare, Chambord, Finlandia Vodka (which was divested on November 1, 2023), Fords Gin, Korbel Brandy, and other agency brands.
•“Non-branded and bulk” includes net sales of used barrels, contract bottling services, and non-branded bulk whiskey and wine.
•“Jack Daniel’s family of brands” includes Jack Daniel’s Tennessee Whiskey (JDTW), JD RTD/RTP, Jack Daniel’s Tennessee Honey (JDTH), Gentleman Jack, Jack Daniel’s Tennessee Apple (JDTA), Jack Daniel’s Tennessee Fire (JDTF), Jack Daniel’s Single Barrel Collection (JDSB), Jack Daniel’s Bonded Tennessee Whiskey, Jack Daniel’s Sinatra Select, Jack Daniel’s Tennessee Rye Whiskey (JDTR), Jack Daniel’s Triple Mash Blended Straight Whiskey, Jack Daniel’s Bottled-in-Bond, Jack Daniel’s American Single Malt, Jack Daniel’s 12 Year Old, Jack Daniel’s 10 Year Old, and other Jack Daniel’s expressions.
Other Metrics.
•“Shipments.” We generally record revenues when we ship or deliver our products to our customers. In this report, unless otherwise specified, we refer to shipments when discussing volume.
•“Depletions.” This metric is commonly used in the beverage alcohol industry to describe volume. Depending on the context, depletions usually means either (a) where Brown-Forman is the distributor, shipments directly to retail or wholesale customers or (b) where Brown-Forman is not the distributor, shipments from distributor customers to retailers and wholesalers. We believe that depletions measure volume in a way that more closely reflects consumer demand than our shipments to distributor customers do.
•“Consumer takeaway.” When discussing trends in the market, we refer to consumer takeaway, a term commonly used in the beverage alcohol industry that refers to the purchase of product by consumers from retail outlets, including products purchased through e-commerce channels, as measured by volume or retail sales value. This information is provided by outside parties, such as Nielsen and the National Alcohol Beverage Control Association (NABCA). Our estimates of market share or changes in market share are derived from consumer takeaway data using the retail sales value metric. We believe consumer takeaway is a leading indicator of consumer demand trends.
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•“Estimated net change in distributor inventories.” We generally recognize revenue when our products are shipped or delivered to customers. In the United States and certain other markets, our customers are distributors that sell downstream to retailers and consumers. We believe that our distributors’ downstream sales more closely reflect actual consumer demand than do our shipments to distributors. Our shipments increase distributors’ inventories, while distributors’ depletions (as described above) reduce their inventories. Therefore, it is possible that our shipments do not coincide with distributors’ downstream depletions and merely reflect changes in distributors’ inventories. Because changes in distributors’ inventories could affect our trends, we believe it is useful for investors to understand those changes in the context of our operating results.
We perform the following calculation to determine the “estimated net change in distributor inventories”:
•For both the current-year period and the comparable prior-year period, we calculate a “depletion-based” amount by (a) dividing the organic dollar amount (e.g. organic net sales) by the corresponding shipment volumes to arrive at a shipment per case amount, and (b) multiplying the resulting shipment per case amount by the corresponding depletion volumes. We subtract the year-over-year percentage change of the “depletion-based” amount from the year-over-year percentage change of the organic amount to calculate the “estimated net change in distributor inventories.”
•A positive difference is interpreted as a net increase in distributors’ inventories, which implies that organic trends could decrease as distributors reduce inventories; whereas, a negative difference is interpreted as a net decrease in distributors’ inventories, which implies that organic trends could increase as distributors rebuild inventories.

Important Information on Forward-Looking Statements:
This report contains statements, estimates, and projections that are “forward-looking statements” as defined under U.S. federal securities laws. Words such as “aim,” “ambition,” “anticipate,” “aspire,” “believe,” “can,” “continue,” “could,” “envision,” “estimate,” “expect,” “expectation,” “intend,” “may,” “might,” “plan,” “potential,” “project,” “pursue,” “see,” “seek,” “should,” “will,” “would,” and similar words indicate forward-looking statements, which speak only as of the date we make them. Except as required by law, we do not intend to update or revise any forward-looking statements, whether as a result of new information, future events, or otherwise. By their nature, forward-looking statements involve risks, uncertainties, and other factors (many beyond our control) that could cause our actual results to differ materially from our historical experience or from our current expectations or projections. These risks and uncertainties include, but are not limited to:

•Our substantial dependence upon the continued growth of the Jack Daniel's family of brands
•Substantial competition from new entrants, consolidations by competitors and retailers, and other competitive activities, such as pricing actions (including price reductions, promotions, discounting, couponing, or free goods), marketing, category expansion, product introductions, or entry or expansion in our geographic markets or distribution networks
•Route-to-consumer changes that affect the timing of our sales, temporarily disrupt the marketing or sale of our products, or result in higher fixed costs
•Disruption of our distribution network or inventory fluctuations in our products by distributors, wholesalers, or retailers
•Changes in consumer preferences, consumption, or purchase patterns – particularly away from larger producers in favor of small distilleries or local producers, or away from brown spirits, our premium products, or spirits generally, and our ability to anticipate or react to them; further legalization of marijuana; bar, restaurant, travel, or other on-premise declines; shifts in demographic or health and wellness trends; or unfavorable consumer reaction to new products, line extensions, package changes, product reformulations, or other product innovation
•Production facility, aging warehouse, or supply chain disruption
•Imprecision in supply/demand forecasting
•Higher costs, lower quality, or unavailability of energy, water, raw materials, product ingredients, or labor
•Risks associated with acquisitions, dispositions, business partnerships, or investments – such as acquisition integration, termination difficulties or costs, or impairment in recorded value
•Impact of health epidemics and pandemics, and the risk of the resulting negative economic impacts and related governmental actions
•Unfavorable global or regional economic conditions and related economic slowdowns or recessions, low consumer confidence, high unemployment, weak credit or capital markets, budget deficits, burdensome government debt, austerity measures, higher interest rates, higher taxes, political instability, higher inflation, deflation, lower returns on pension assets, or lower discount rates for pension obligations
•Product recalls or other product liability claims, product tampering, contamination, or quality issues
•Negative publicity related to our company, products, brands, marketing, executive leadership, employees, Board of Directors, family stockholders, operations, business performance, or prospects
•Failure to attract or retain key executive or employee talent
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•Risks associated with being a U.S.-based company with a global business, including commercial, political, and financial risks; local labor policies and conditions; protectionist trade policies, or economic or trade sanctions, including additional retaliatory tariffs on American whiskeys and the effectiveness of our actions to mitigate the negative impact on our margins, sales, and distributors; compliance with local trade practices and other regulations; terrorism, kidnapping, extortion, or other types of violence; and health pandemics
•Failure to comply with anti-corruption laws, trade sanctions and restrictions, or similar laws or regulations
•Fluctuations in foreign currency exchange rates, particularly a stronger U.S. dollar
•Changes in laws, regulatory measures, or governmental policies, especially those affecting production, importation, marketing, labeling, pricing, distribution, sale, or consumption of our beverage alcohol products
•Tax rate changes (including excise, corporate, sales or value-added taxes, property taxes, payroll taxes, import and export duties, and tariffs) or changes in related reserves, changes in tax rules or accounting standards, and the unpredictability and suddenness with which they can occur
•Decline in the social acceptability of beverage alcohol in significant markets
•Significant additional labeling or warning requirements or limitations on availability of our beverage alcohol products
•Counterfeiting and inadequate protection of our intellectual property rights
•Significant legal disputes and proceedings, or government investigations
•Cyber breach or failure or corruption of our key information technology systems or those of our suppliers, customers, or direct and indirect business partners, or failure to comply with personal data protection laws
•Our status as a family “controlled company” under New York Stock Exchange rules, and our dual-class share structure
For further information on these and other risks, please see the risks and uncertainties described in Part I, Item 1A. Risk Factors of our 2024 Form 10-K, and those described from time to time in our reports on Form 10-Q filed with the Securities and Exchange Commission (SEC).
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Overview
Unless otherwise indicated, all related commentary is on a reported basis and is for the six months ended October 31, 2024 compared to the same period last year.
Divestitures
During the third quarter of fiscal 2024, we sold the Finlandia vodka business for $196 million cash and entered into a TSA for this business. The absence of the brand negatively impacted our net sales and operating income for the six months and three months ended October 31, 2024. The TSA for this divestiture negatively impacted our gross margin for the six months and three months ended October 31, 2024.

During the fourth quarter of fiscal 2024, we sold the Sonoma-Cutrer wine business in exchange for an ownership percentage of 21.4% in Duckhorn along with $50 million cash and entered into a TSA for this business. The absence of the brand negatively impacted our net sales and operating income for the six months and three months ended October 31, 2024. The TSA for this divestiture negatively impacted our gross margin for the six months and three months ended October 31, 2024. On October 6, 2024, Duckhorn entered into a definitive agreement pursuant to which Duckhorn will be acquired by private equity funds. See Note 5 to the Condensed Consolidated Financial Statements for more information.
Fiscal 2025 Year-to-Date Highlights
•We delivered net sales of $2.0 billion for the six months ended October 31, 2024, a decrease of 5%. The decrease was driven by (a) the negative effect of acquisitions and divestitures; (b) lower volumes; (c) the negative effect of foreign exchange; and (d) the impact of JDCC, partially offset by favorable price/mix.
◦From a brand perspective, net sales declines were led by the Finlandia and Sonoma-Cutrer divestitures, the impact of JDCC, and our Tequila portfolio, partially offset by growth of the non-branded and bulk business (primarily used barrel sales) and Woodford Reserve.
◦From a geographic perspective, the declines in net sales were across geographic aggregations.
•We delivered gross profit of $1.2 billion for the six months ended October 31, 2024, a decrease of 8%. Gross margin decreased 2.4 percentage points to 59.2% from 61.6% in the same period last year. The decrease in gross margin was largely driven by the timing of input cost fluctuations coupled with high inventory levels, the negative effect of foreign exchange, and the impact of the TSAs for the divestitures (as described above), partially offset by favorable price/mix and the impact of JDCC.
•We delivered operating income of $622 million for the six months ended October 31, 2024, a decrease of 7% largely driven by the timing of input cost fluctuations coupled with high inventory levels, the negative effect of the acquisitions and divestitures, and the negative effect of foreign exchange. The decrease was partially offset by (a) favorable price/mix; (b) advertising and SG&A expense leverage; (c) the franchise tax refund; and (d) the gain on sale of the Alabama cooperage.
•We delivered diluted earnings per share of $0.96 for the six months ended October 31, 2024, a decrease of 3% from the $0.98 reported for the same period last year, driven primarily by the decrease in operating income, partially offset by the benefit of the lower effective tax rate.



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Summary of Operating Performance
Three Months Ended October 31,Six Months Ended October 31,
(Dollars in millions)20232024Reported Change
 Organic Change1
20232024Reported Change
Organic Change1
Net sales$1,107 $1,095 (1 %)3 %$2,145 $2,046 (5 %)— %
Cost of sales436 449 3 %8 %823 835 1 %6 %
Gross profit671 646 (4 %)— %1,322 1,211 (8 %)(4 %)
Advertising140 126 (9 %)(7 %)271 252 (7 %)(4 %)
SG&A192 187 (3 %)(1 %)392 375 (4 %)(3 %)
Other expense (income), net— (8)
nm4
nm4
(7)(38)
nm4
nm4
Operating income339 341 1 %5 %666 622 (7 %)(3 %)
Total operating expenses2
$332 $305 (8 %)(5 %)$656 $589 (10 %)(4 %)
As a percentage of net sales3
Gross profit60.6 %59.1 %(1.5)pp61.6 %59.2 %(2.4)pp
Operating income30.6 %31.1 %0.5 pp31.0 %30.4 %(0.6)pp
Effective tax rate22.0 %17.6 %(4.4)pp22.4 %20.1 %(2.3)pp
Diluted earnings per share$0.50 $0.55 9 %$0.98 $0.96 (3 %)
Note: Totals may differ due to rounding
1See “Non-GAAP Financial Measures” above for details on our use of “organic change,” including how we calculate these measures and why we believe this information is useful to readers.
2Operating expenses include advertising expense, SG&A expense, and other expense (income), net.
3Year-over-year changes in percentages are reported in percentage points (pp).
4Percentage change is not meaningful.
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Results of Operations – Fiscal 2025 Year-to-Date Highlights
Market Highlights
The following table provides supplemental information for our largest markets. We discuss results of the markets most affecting our performance below the table. Unless otherwise indicated, all related commentary is on a reported basis and is for the six months ended October 31, 2024 compared to the same period last year.
Top Markets
Six months ended October 31, 2024
Net Sales % Change vs. Prior Year Period
Geographic area1
ReportedAcquisitions and Divestitures
JDCC2
Foreign Exchange
Organic3
United States(7 %)2 %2 %— %(3 %)
Developed International(5 %)2 %— %— %(3 %)
Germany(2 %)— %— %(1 %)(2 %)
Australia(5 %)— %— %— %(4 %)
United Kingdom(8 %)— %— %(3 %)(11 %)
France(2 %)— %— %(1 %)(3 %)
Canada(2 %)4 %— %1 %3 %
Spain(12 %)1 %— %— %(11 %)
Rest of Developed International(7 %)8 %— %— %1 %
Emerging(3 %)6 %— %4 %6 %
Mexico(11 %)— %— %6 %(5 %)
Poland(15 %)20 %— %(8 %)(3 %)
Brazil31 %— %— %6 %37 %
Rest of Emerging(3 %)8 %— %4 %9 %
Travel Retail(5 %)2 %— %— %(3 %)
Non-branded and bulk39 %2 %— %— %41 %
Total(5 %)3 %1 %1 %— %
Note: Results may differ due to rounding
1See “Definitions” above for definitions of market aggregations presented here.
2“JDCC” is included in “Other items”. See “Non-GAAP Financial Measures” above for additional details.
3See “Non-GAAP Financial Measures” above for details on our use of “organic change” in net sales, including how we calculate this measure and why we believe this information is useful to readers.
The United States’ net sales declined 7% driven by lower volumes, led by JDTW and Korbel California Champagnes, along with the divestiture of Sonoma-Cutrer and the impact of JDCC. The declines were partially offset by higher volumes of Woodford Reserve and Old Forester. An estimated net increase in distributor inventories positively impacted net sales.
Developed International
•Germany’s net sales declined 2% driven by lower volumes of JDTW and JD RTDs, partially offset by the positive contribution from Diplomático and the positive effect of foreign exchange.
•Australia’s net sales decreased 5% driven by declines of JD RTDs and local market agency brands.
•The United Kingdom’s net sales declined 8% led by lower volumes of JDTW, partially offset by the positive effect of foreign exchange.    
•France’s net sales decreased 2% driven by declines across our Jack Daniel’s family of brands, partially offset by the positive contribution from Diplomático and the positive effect of foreign exchange.
•Canada’s net sales declined 2% driven by the divestitures of Finlandia and Sonoma-Cutrer, as well as the negative effect of foreign exchange. The declines were partially offset by growth of JD RTDs.
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•Spain’s net sales declined 12% led by lower volumes of JDTW, partially offset by the positive contribution from Diplomático.
•Net sales in the Rest of Developed International decreased 7% driven by the divestiture of Finlandia, declines of Glenglassaugh due to the absence of the high-value cask sales in the same prior-year period, and lower volumes of JDTW in South Korea. The declines were partially offset by higher JDTW volumes in Japan primarily due to changes in distributor ordering patterns in the same prior-year period (we transitioned to owned distribution in Japan on April 1, 2024).
Emerging
•Mexico’s net sales declined 11% driven by lower volumes of our Tequila portfolio and the negative effect of foreign exchange, partially offset by growth of New Mix.
•Poland’s net sales declined 15% driven by the divestiture of Finlandia and lower volumes of Gentleman Jack, partially offset by the positive effect of foreign exchange.
•Brazil’s net sales increased 31% driven by higher volumes across the portfolio, led by JDTW, JDTA, and JDTH. The growth was partially offset by the negative effect of foreign exchange.
•Net sales in the Rest of Emerging declined 3% driven by the divestiture of Finlandia, the negative effect of foreign exchange (reflecting the strengthening of the dollar primarily against the Turkish lira), and lower volumes across the Jack Daniel’s family of brands in Chile. These declines were partially offset by higher prices of JDTW in Türkiye and volumetric growth of JDTW in Sub-Saharan Africa, reflecting an estimated net increase in distributor inventories.
Travel Retail’s net sales declined 5% led by lower volumes of the other super-premium Jack Daniel’s expressions and Woodford Reserve, as well as the divestiture of Finlandia. The declines were partially offset by growth of JDTW and Diplomático.
Non-branded and bulk’s net sales increased 39% driven by higher prices for used barrels.
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Brand Highlights
The following table provides supplemental information for our largest brands. We discuss results of the brands most affecting our performance below the table. Unless otherwise indicated, all related commentary is on a reported basis and is for the six months ended October 31, 2024 compared to the same period last year.
Major Brands
Six months ended October 31, 2024
Net Sales % Change vs. Prior Year Period
Product category / brand family / brand1
ReportedAcquisitions and Divestitures
JDCC2
Foreign Exchange
Organic3
Whiskey(1 %)— %— %1 %— %
JDTW(1 %)— %— %— %— %
JDTH— %— %— %1 %2 %
Gentleman Jack1 %— %— %— %1 %
JDTA(2 %)— %— %3 %1 %
JDTF(3 %)— %— %1 %(2 %)
Woodford Reserve8 %— %— %— %8 %
Old Forester11 %— %— %— %11 %
Rest of Whiskey(22 %)— %— %— %(22 %)
Ready-to-Drink(6 %)— %6 %2 %2 %
JD RTD/RTP(8 %)— %8 %1 %1 %
New Mix(1 %)— %— %6 %5 %
Tequila(17 %)— %— %1 %(17 %)
el Jimador(16 %)— %— %— %(16 %)
Herradura(14 %)— %— %1 %(13 %)
Rest of Portfolio(26 %)27 %— %(1 %)— %
Non-branded and bulk39 %2 %— %— %41 %
Note: Results may differ due to rounding
1See “Definitions” above for definitions of brand aggregations presented here.
2“JDCC” is included in “Other items”. See “Non-GAAP Financial Measures” above for additional details.
3See “Non-GAAP Financial Measures” above for details on our use of “organic change” in net sales, including how we calculate this measure and why we believe this information is useful to readers.
Whiskey
•Net sales for JDTW declined 1% driven by lower volumes, led by the United States, the United Kingdom and South Korea. The declines were partially offset by higher volumes in Japan following the transition to owned-distribution and higher prices in Türkiye in response to high inflation and currency devaluation. An estimated net increase in distributor inventories positively impacted net sales.
•Net sales for JDTH were flat as growth in Brazil and Türkiye was offset by declines in South Korea and the negative effect of foreign exchange. An estimated net increase in distributor inventories positively impacted net sales.
•Net sales for Gentleman Jack increased 1% driven by higher prices in Türkiye, partially offset by lower volumes in the United States.
•Net sales for JDTA decreased 2% driven by declines in South Korea following the continued product launch in the same prior-year period, along with the negative effect of foreign exchange. These declines were partially offset by higher volumes in Brazil.
•Net sales for JDTF declined 3% driven by lower volumes in the developed international markets and the United States, as well as the negative effect of foreign exchange. The decline was partially offset by higher volumes in the emerging markets, led by Brazil.
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•Woodford Reserve’s net sales increased 8% driven by higher volumes in the United States, primarily due to an estimated net increase in distributor inventories. The increase was partially offset by lower volumes in Travel Retail.
•Old Forester’s net sales increased 11% driven by favorable product mix in the United States.
•Net sales for Rest of Whiskey declined 22% driven by lower volumes of the other super-premium Jack Daniel's expressions and The Glendronach, as well as declines of Glenglassaugh due to the absence of the high-value cask sales as compared to the same prior-year period.
Ready-to-Drink
•Net sales for the JD RTD/RTP brands decreased 8% led by the impact of JDCC and declines in Australia, partially offset by growth in the United States reflecting an estimated net increase in distributor inventories.
•New Mix net sales declined 1% driven by the negative effect of foreign exchange, partially offset by higher volumes and favorable price/mix in Mexico.
Tequila
•el Jimador’s net sales declined 16% driven by lower volumes in the United States, Mexico, and Colombia. The declines were partially offset by higher prices in the United States.
•Herradura’s net sales decreased 14% driven by declines in Mexico and the United States.
Net sales for Rest of Portfolio declined 26% driven by the divestitures of Finlandia and Sonoma-Cutrer and lower volumes of Korbel California Champagnes in the United States. The declines were partially offset by the positive contribution from Diplomático. An estimated net increase in distributor inventories positively impacted net sales.
Non-branded and bulk’s net sales increased 39% driven by higher prices for used barrels.













28

Year-Over-Year Period Comparisons
Net Sales
3 Months6 Months
Percentage change versus the prior year period ended October 31VolumePrice/mixTotalVolumePrice/mixTotal
Change in reported net sales(6 %)4 %(1 %)(11 %)7 %(5 %)
Acquisitions and divestitures5 %(1 %)4 %4 %(1 %)3 %
JDCC1
4 %(3 %)1 %5 %(4 %)1 %
Foreign exchange— %— %— %— %1 %1 %
Change in organic net sales4 %— %3 %(2 %)2 %— %
Note: Results may differ due to rounding
1“JDCC” is included in “Other items”. See “Non-GAAP Financial Measures” above for additional details.
For the three months ended October 31, 2024, net sales were $1.1 billion, a decrease of $13 million, or 1%, driven by the negative effect of acquisitions and divestitures and the impact of JDCC, partially offset by higher volumes, led by New Mix and JDTW. Price/mix reflects an unfavorable portfolio mix shift offset by growth of the non-branded and bulk business (primarily used barrel sales).
For the six months ended October 31, 2024, net sales were $2.0 billion, a decrease of $100 million, or 5%, driven by (a) the negative effect of acquisitions and divestitures; (b) lower volumes; (c) the negative effect of foreign exchange; and (d) the impact of JDCC, partially offset by favorable price/mix. Lower volumes were led by JD RTDs and el Jimador. Price/mix reflects higher prices, led by Türkiye (in response to high inflation and currency devaluation), growth of the non-branded and bulk business (primarily used barrel sales), and portfolio mix shift to our higher priced brands. See “Results of Operations - Fiscal 2025 Year-to-Date Highlights” above for further details on net sales for the six months ended October 31, 2024.
Cost of Sales
3 Months6 Months
Percentage change versus the prior year period ended October 31VolumeCost/mixTotalVolumeCost/mixTotal
Change in reported cost of sales(6 %)8 %3 %(11 %)13 %1 %
Acquisitions and divestitures5 %— %6 %4 %(2 %)2 %
JDCC1
4 %(2 %)2 %5 %(3 %)2 %
Foreign exchange— %(2 %)(2 %)— %— %— %
Change in organic cost of sales4 %5 %8 %(2 %)8 %6 %
Note: Results may differ due to rounding
1“JDCC” is included in “Other items”. See “Non-GAAP Financial Measures” above for additional details.
For the three months ended October 31, 2024, cost of sales were $449 million, an increase of $12 million, or 3%, driven by unfavorable cost/mix (timing of input cost fluctuations coupled with high inventory levels), higher volumes, and the negative effect of foreign exchange, partially offset by the positive effect of the acquisitions and divestitures along with the impact of JDCC.
For the six months ended October 31, 2024, cost of sales were $835 million, an increase of $12 million, or 1%, driven by unfavorable cost/mix (timing of input cost fluctuations coupled with high inventory levels), largely offset by the positive effect of the acquisitions and divestitures, the impact of JDCC, and lower volumes.

29

Gross Profit
Percentage change versus the prior year period ended October 313 Months6 Months
Change in reported gross profit(4 %)(8 %)
Acquisitions and divestitures3 %3 %
JDCC1
— %— %
Foreign exchange1 %1 %
Change in organic gross profit— %(4 %)
Note: Results may differ due to rounding
1“JDCC” is included in “Other items”. See “Non-GAAP Financial Measures” above for additional details.

Gross Margin
For the period ended October 313 Months6 Months
Prior year gross margin60.6 %61.6 %
Price/mix1.3 %1.7 %
Cost(3.1)%(3.9)%
Acquisitions and divestitures0.5 %(0.3 %)
JDCC1
0.3 %0.5 %
Foreign exchange(0.5 %)(0.4 %)
Change in gross margin(1.5 %)(2.4 %)
Current year gross margin59.1 %59.2 %
Note: Results may differ due to rounding——
1“JDCC” is included in “Other items”. See “Non-GAAP Financial Measures” above for additional details.
For the three months ended October 31, 2024, gross profit of $646 million decreased $24 million, or 4%, compared to the same period last year. Gross margin decreased to 59.1% from 60.6% in the same period last year. The decrease in gross margin was largely driven by the timing of input cost fluctuations coupled with high inventory levels and the negative effect of foreign exchange, partially offset by favorable price/mix, the positive effect of the acquisitions and divestitures, and the impact of JDCC.
For the six months ended October 31, 2024, gross profit of $1.2 billion decreased $111 million, or 8%, compared to the same period last year. Gross margin decreased to 59.2% from 61.6% in the same period last year. The decrease in gross margin was largely driven by the timing of input cost fluctuations coupled with high inventory levels, the negative effect of foreign exchange, and the impact of the TSAs for the divestitures (as described in “Overview” above), partially offset by favorable price/mix and the impact of JDCC.




30

Operating Expenses
Percentage change versus the prior year period ended October 31
3 MonthsReportedAcquisitions and Divestitures
Franchise Tax Refund1
Foreign ExchangeOrganic
Advertising(9 %)2 %— %— %(7 %)
SG&A(3 %)2 %— %— %(1 %)
Total operating expenses2
(8 %)2 %— %1 %(5 %)
6 Months
Advertising(7 %)2 %— %1 %(4 %)
SG&A(4 %)1 %— %— %(3 %)
Total operating expenses2
(10 %)3 %2 %1 %(4 %)
Note: Results may differ due to rounding
1“Franchise tax refund” is included in “Other items”. See “Non-GAAP Financial Measures” above for additional details.
2Total Operating expenses include advertising expense, SG&A expense, and other expense (income), net.
For the three months ended October 31, 2024, operating expenses totaled $305 million, a decrease of $27 million, or 8%, compared to the same period last year. The decrease in operating expenses was primarily driven by the decrease in advertising and SG&A, the positive effect of acquisitions and divestitures, and the positive effect of foreign exchange.
•Advertising expense decreased 9% for the three months ended October 31, 2024 driven by lower JDTW spend and the impact of our recently divested brands.
•SG&A expense decreased 3% for the three months ended October 31, 2024 driven by lower discretionary spend, the absence of transaction-related expenses for the divestiture of Finlandia, and lower compensation and benefit related expenses.
For the six months ended October 31, 2024, operating expenses totaled $589 million, a decrease of $67 million, or 10%, compared to the same period last year. The decrease in operating expenses was primarily driven by (a) the positive effect of acquisitions and divestitures, (b) the Franchise tax refund, (c) the gain on sale of the Alabama cooperage, (d) the decrease in advertising expense, (e) the decrease in SG&A expense, and (f) the positive effect of foreign exchange.
•Advertising expense decreased 7% for the six months ended October 31, 2024 driven by (a) timing of spend on super-premium Jack Daniel’s expressions; (b) lower Jack Daniel’s and Coca-Cola RTD spend as compared to the prior-year period launch in the United States; (c) the impact of our recently divested brands; and (d) the positive effect of foreign exchange.
•SG&A expense decreased 4% for the six months ended October 31, 2024 driven by lower compensation and benefit related expenses, lower discretionary spend, and the absence of transaction-related expenses for the divestiture of Finlandia.







31

Operating Income
Percentage change versus the prior year period ended October 313 Months6 Months
Change in reported operating income1 %(7 %)
Acquisitions and divestitures5 %4 %
Other items1
— %(2 %)
Foreign exchange— %1 %
Change in organic operating income5 %(3 %)
Note: Results may differ due to rounding
1“Other items” includes “JDCC” and “franchise tax refund”. See “Non-GAAP Financial Measures” above for additional details.
For the three months ended October 31, 2024, operating income totaled $341 million, an increase of $2 million, or 1%, compared to the same period last year. Operating margin increased 0.5 percentage points to 31.1% from 30.6% in the same period last year driven by operating expense leverage and favorable price/mix, partially offset by the timing of input cost fluctuations coupled with high inventory level and the negative effect of the acquisitions and divestitures.
For the six months ended October 31, 2024, operating income totaled $622 million, a decrease of $44 million, or 7%, compared to the same period last year. Operating margin decreased 0.6 percentage points to 30.4% from 31.0% in the same period last year largely driven by the timing of input cost fluctuations coupled with high inventory levels, the impact of the TSAs for the divestitures (as described in “Overview” above), and the negative effect of foreign exchange. The decrease was partially offset by (a) favorable price/mix; (b) advertising and SG&A expense leverage; (c) the Franchise tax refund; and (d) the gain on sale of the Alabama cooperage.
The effective tax rate for the three months ended October 31, 2024 was 17.6% compared to 22.0% for the same period last year. The decrease in our effective tax rate was driven primarily by the beneficial impact of state income tax refunds related to amended prior year returns and decreased tax effects of foreign earnings, partially offset by increased impact of state taxes.
The effective tax rate for the six months ended October 31, 2024 was 20.1% compared to 22.4% for the same period last year. The decrease in our effective tax rate was primarily due to the beneficial impact of state income tax refunds related to amended prior year returns and the absence of an unfavorable tax rate change in the prior fiscal year, partially offset by the impact of increased valuation allowances in the current period.
Diluted earnings per share of $0.55 for the three months ended October 31, 2024, increased 9% from the $0.50 reported for the same period last year driven primarily by the increase in operating income and the benefit of the lower effective tax rate. Diluted earnings per share of $0.96 for the six months ended October 31, 2024, decreased 3% from the $0.98 reported for the same period last year driven primarily by the decrease in operating income partially offset by the benefit of the lower effective tax rate.

Fiscal 2025 Outlook
Below we discuss our outlook for fiscal 2025, which reflects the trends, developments, and uncertainties (including those described above) that we expect to affect our business.
We anticipate a return to growth for organic net sales and organic operating income in fiscal 2025 driven by gains in international markets and the benefit of normalizing inventory trends. This outlook is tempered by our belief that global macroeconomic and geopolitical uncertainties will continue to create a challenging operating environment. Accordingly, we reiterate the following expectations for fiscal 2025:
•Organic net sales growth in the 2% to 4% range.
•Organic operating income growth in the 2% to 4% range.
•An effective tax rate to be in the range of approximately 21% to 23%.
The estimated capital expenditure range has been updated to $180 to $190 million from $195 to $205 million.
32


Liquidity and Financial Condition
Liquidity. We generate strong cash flows from operations, which enable us to meet current obligations, fund capital expenditures, and return cash to our stockholders through regular dividends and, from time to time, through share repurchases and special dividends. We believe our investment-grade credit ratings (A1 by Moody’s and A- by Standard & Poor’s) provide us with financial flexibility when accessing global debt capital markets and allow us to reserve adequate debt capacity for investment opportunities and unforeseen events.
Our cash flows from operations are supplemented by our cash and cash equivalent balances, as well as access to other liquidity sources. Cash and cash equivalents were $446 million at April 30, 2024, and $416 million at October 31, 2024. As of October 31, 2024, approximately 48% of our cash and cash equivalents were held by our foreign subsidiaries whose earnings we expect to reinvest indefinitely outside of the United States. We continue to evaluate our future cash requirements and may decide to repatriate additional cash held by our foreign subsidiaries, which may require us to provide for and pay additional taxes.
We have a $900 million commercial paper program that we use, together with our cash flows from operations, to fund our short-term operational needs. See Note 7 to the Condensed Consolidated Financial Statements included in Part I, Item 1 of this Quarterly Report for outstanding commercial paper balances, interest rates, and days to maturity at April 30, 2024, and October 31, 2024. The average balances, interest rates, and original maturities during the periods ended October 31, 2023 and 2024, are presented below.
Three Months Average
Six Months Average
October 31,October 31,
(Dollars in millions)2023202420232024
Average commercial paper (par amount)
$400$529$355$484
Average interest rate5.47%5.34%5.39%5.41%
Average days to maturity at issuance36403435
Our commercial paper program is supported by available commitments under our $900 million bank credit facility that expires on May 26, 2028. Although unlikely, under extreme market conditions, one or more participating banks may not be able to fund its commitments under our credit facility. To manage this counterparty credit risk, we partner with banks that have investment grade credit ratings, limit the amount of exposure we have with each bank, and monitor each bank’s financial conditions.
Our most significant short-term cash requirements relate primarily to funding our operations (such as expenditures for raw materials, production and distribution, advertising and promotion, and current taxes), repayment of our notes maturing in April 2025, dividend payments, and capital investments. We expect to meet our planned short-term liquidity needs through cash generated from operations and borrowings under our commercial paper program. If we have additional liquidity needs, we believe that we could access financing in the capital markets. Our most significant longer-term cash requirements primarily include payments related to our long-term debt, employee benefit obligations, and deferred tax liabilities.
We believe our current liquidity position, supplemented by our ability to generate positive cash flows from operations in the future, and our ample debt capacity enabled by our strong short-term and long-term credit ratings, will be sufficient to meet all of our expected future short- and long-term financial commitments.
Cash flows. Cash provided by operations of $129 million during the six months ended October 31, 2024, increased $32 million from the same period last year, reflecting lower working capital requirements offset partially by lower earnings.
Cash used for investing activities was $21 million during the six months ended October 31, 2024, compared to $61 million used for investing activities during the same period last year. The $40 million decline largely reflects a $38 million increase in proceeds from asset sales, primarily attributable to proceeds of $51 million received from the sale of our Alabama cooperage in May 2024.
Cash used for financing activities was $129 million during the six months ended October 31, 2024, compared to $23 million in cash used for financing activities during the same prior-year period. The $106 million increase largely reflects a $137 million decrease in net proceeds from short-term borrowings and a $9 million increase in dividend payments, partially offset by a $42 million decline in share repurchases.
Dividends. See Note 8 to the Condensed Consolidated Financial Statements included in Part I, Item 1 of this Quarterly Report for information about cash dividends declared per share on our Class A and Class B common stock during fiscal 2025.
33


Item 3. Quantitative and Qualitative Disclosures about Market Risk
We face market risks arising from changes in foreign currency exchange rates, commodity prices, and interest rates. Foreign currency fluctuations affect our net investments in foreign subsidiaries and foreign currency-denominated cash flows. Commodity price changes can affect our production and supply chain costs. Interest rate changes affect (a) the fair value of our fixed-rate debt and (b) cash flows and earnings related to our variable-rate debt and interest-bearing investments. We manage market risks through procurement strategies as well as the use of derivative and other financial instruments. Our risk management program is governed by policies that authorize and control the nature and scope of transactions that we use to mitigate market risks. Since April 30, 2024, there have been no material changes to the market risks faced by us or to our risk management program as disclosed in our 2024 Form 10-K.

Item 4. Controls and Procedures
Evaluation of Disclosure Controls and Procedures. Our management, with the participation of our Chief Executive Officer (CEO) and Chief Financial Officer (CFO) (our principal executive and principal financial officers), has evaluated the effectiveness of our disclosure controls and procedures (as defined in Rule 13a-15(e) under the Securities Exchange Act of 1934, as amended (Exchange Act)), as of the end of the period covered by this report. Based on that evaluation, our CEO and CFO concluded that our disclosure controls and procedures: (a) are effective to ensure that information required to be disclosed by the Company in the reports filed or submitted under the Exchange Act is recorded, processed, summarized, and reported within the time periods specified in the SEC’s rules and forms; and (b) include controls and procedures designed to ensure that information required to be disclosed by the Company in such reports is accumulated and communicated to the Company’s management, including the CEO and the CFO, as appropriate, to allow timely decisions regarding required disclosure.
Changes in Internal Control over Financial Reporting. There has been no change in our internal control over financial reporting during the most recent fiscal quarter that has materially affected, or is reasonably likely to materially affect, our internal control over financial reporting.
34

PART II - OTHER INFORMATION

Item 1. Legal Proceedings
We operate in a litigious environment and we are sued in the normal course of business. We do not anticipate that any pending legal proceedings will have, individually or in the aggregate, a material adverse effect on our financial position, results of operations, or liquidity.

Item 1A. Risk Factors
In addition to the other information set forth in this report, you should carefully consider the risks and uncertainties discussed in Part I, Item 1A. Risk Factors in our 2024 Form 10-K, which could materially adversely affect our business, financial condition, or future results. There have been no material changes to the risk factors disclosed in our 2024 Form 10-K.

Item 2. Unregistered Sales of Equity Securities and Use of Proceeds 
None.

Item 3. Defaults Upon Senior Securities
None.

Item 4. Mine Safety Disclosures
Not applicable.

Item 5. Other Information
During the three months ended October 31, 2024, no director or officer of the Company adopted or terminated a “Rule 10b5-1 trading arrangement” or “non-Rule 10b5-1 trading arrangement,” as each term is defined in Item 408(a) of Regulation S-K.

Item 6. Exhibits
The following documents are filed with this report:
Exhibit Index
31.1
31.2
32
101The following materials from Brown-Forman Corporation's Quarterly Report on Form 10-Q for the quarter ended October 31, 2024, in Inline XBRL (eXtensible Business Reporting Language) format: (a) Condensed Consolidated Statements of Operations, (b) Condensed Consolidated Statements of Comprehensive Income, (c) Condensed Consolidated Balance Sheets, (d) Condensed Consolidated Statements of Cash Flows, and (e) Notes to the Condensed Consolidated Financial Statements.
104Cover Page Interactive Data File in Inline XBRL format (included in Exhibit 101).
35

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.


 BROWN-FORMAN CORPORATION
 (Registrant)
   
Date:December 5, 2024By:/s/ Leanne D. Cunningham
  Leanne D. Cunningham
  Executive Vice President
and Chief Financial Officer
  (On behalf of the Registrant and
as Principal Financial Officer)

36

Exhibit 31.1
 

CERTIFICATION PURSUANT TO SECTION 302 OF SARBANES-OXLEY ACT OF 2002

I, Lawson E. Whiting, certify that:

1.    I have reviewed this Quarterly Report on Form 10-Q of Brown-Forman Corporation;

2.    Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3.    Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4.    The registrant's other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

a)      Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

b)      Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

c)      Evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

d)      Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and

5.    The registrant's other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant's auditors and the audit committee of the registrant's board of directors (or persons performing the equivalent functions):

a)      All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize and report financial information; and

b)      Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting.



Dated:December 5, 2024By:/s/ Lawson E. Whiting
  Lawson E. Whiting
  
President and Chief Executive Officer



Exhibit 31.2


CERTIFICATION PURSUANT TO SECTION 302 OF SARBANES-OXLEY ACT OF 2002

I, Leanne D. Cunningham, certify that:

1.    I have reviewed this Quarterly Report on Form 10-Q of Brown-Forman Corporation;

2.    Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3.    Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4.    The registrant's other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

a)    Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

b)      Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

c)      Evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

d)      Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and

5.    The registrant's other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant's auditors and the audit committee of the registrant's board of directors (or persons performing the equivalent functions):

a)      All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize and report financial information; and

b)      Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting.



Dated:December 5, 2024By:/s/ Leanne D. Cunningham
  Leanne D. Cunningham
  Executive Vice President and Chief Financial Officer



Exhibit 32
 
 
CERTIFICATION PURSUANT TO 18 U.S.C. SECTION 1350, AS ADOPTED PURSUANT TO SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002


In connection with the Quarterly Report of Brown-Forman Corporation (“the Company”) on Form 10-Q for the period ended October 31, 2024, as filed with the Securities and Exchange Commission on the date hereof (the “Report”), each of the undersigned hereby certifies, pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, in the capacity as an officer of the Company, that:

(1)The Report fully complies with the requirements of Section 13(a) of the Securities Exchange Act of 1934; and
(2)The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.


Dated:December 5, 2024  
 By:/s/ Lawson E. Whiting
  Lawson E. Whiting
  
President and Chief Executive Officer
 By:/s/ Leanne D. Cunningham
  Leanne D. Cunningham
  Executive Vice President and Chief Financial Officer


A signed original of this written statement required by Section 906 has been provided to the Company and will be retained by the Company and furnished to the Securities and Exchange Commission or its staff upon request.

This certificate is being furnished solely for purposes of Section 906 and is not being filed as part of the Report.

v3.24.3
Document and Entity Information - shares
 6 Months Ended
Oct. 31, 2024
Nov. 30, 2024
Document Information [Line Items]    
Document Type 10-Q  
Document Quarterly Report true  
Document Period End Date Oct. 31, 2024  
Document Transition Report false  
Entity File Number 001-00123  
Entity Registrant Name Brown-Forman Corporation  
Entity Incorporation, State or Country Code DE  
Entity Tax Identification Number 61-0143150  
Entity Address, Address Line One 850 Dixie Highway  
Entity Address, City or Town Louisville,  
Entity Address, State or Province KY  
Entity Address, Postal Zip Code 40210  
City Area Code 502  
Local Phone Number 585-1100  
Entity Current Reporting Status Yes  
Entity Interactive Data Current Yes  
Entity Filer Category Large Accelerated Filer  
Entity Small Business false  
Entity Emerging Growth Company false  
Entity Shell Company false  
Entity Central Index Key 0000014693  
Amendment Flag false  
Document Fiscal Year Focus 2025  
Document Fiscal Period Focus Q2  
Current Fiscal Year End Date --04-30  
Common stock, Class A, voting [Member]    
Document Information [Line Items]    
Title of 12(b) Security Class A Common Stock (voting), $0.15 par value  
Trading Symbol BFA  
Security Exchange Name NYSE  
Entity Common Stock, Shares Outstanding   169,123,305
Common stock, Class B, nonvoting [Member]    
Document Information [Line Items]    
Title of 12(b) Security Class B Common Stock (nonvoting), $0.15 par value  
Trading Symbol BFB  
Security Exchange Name NYSE  
Entity Common Stock, Shares Outstanding   303,537,999
1.20% notes, due July 7, 2026 [Member]    
Document Information [Line Items]    
Title of 12(b) Security 1.200% Notes due 2026  
Trading Symbol BF26  
Security Exchange Name NYSE  
2.60% notes, due July 7, 2028 [Member]    
Document Information [Line Items]    
Title of 12(b) Security 2.600% Notes due 2028  
Trading Symbol BF28  
Security Exchange Name NYSE  
v3.24.3
Condensed Consolidated Statements of Operations (Unaudited) - USD ($)
$ in Millions
 3 Months Ended 6 Months Ended
Oct. 31, 2024
Oct. 31, 2023
Oct. 31, 2024
Oct. 31, 2023
Income Statement [Abstract]        
Sales $ 1,376 $ 1,405 $ 2,587 $ 2,731
Excise taxes 281 298 541 586
Net sales 1,095 1,107 2,046 2,145
Cost of sales 449 436 835 823
Gross profit 646 671 1,211 1,322
Advertising expenses 126 140 252 271
Selling, general, and administrative expenses 187 192 375 392
Other expense (income), net (8) 0 (38) (7)
Operating income 341 339 622 666
Non-operating postretirement expense 1 0 1 1
Interest income (3) (2) (7) (4)
Interest expense 32 31 64 60
Equity method investment income (2) 0 (2) 0
Income before income taxes 313 310 566 609
Income taxes 55 68 113 136
Net income $ 258 $ 242 $ 453 $ 473
Earnings per share:        
Basic (dollars per share) $ 0.55 $ 0.50 $ 0.96 $ 0.99
Diluted (dollars per share) $ 0.55 $ 0.50 $ 0.96 $ 0.98
v3.24.3
Condensed Consolidated Statements of Comprehensive Income (Unaudited) - USD ($)
$ in Millions
 3 Months Ended 6 Months Ended
Oct. 31, 2024
Oct. 31, 2023
Oct. 31, 2024
Oct. 31, 2023
Statement of Comprehensive Income [Abstract]        
Net income $ 258 $ 242 $ 453 $ 473
Other comprehensive income (loss), net of tax:        
Currency translation adjustments (26) (104) (68) (65)
Cash flow hedge adjustments (1) 12 (3) 7
Postretirement benefits adjustments 0 1 1 3
Net other comprehensive income (loss) (27) (91) (70) (55)
Comprehensive income $ 231 $ 151 $ 383 $ 418
v3.24.3
Condensed Consolidated Balance Sheets (Unaudited) - USD ($)
$ in Millions
Oct. 31, 2024
Apr. 30, 2024
Assets    
Cash and cash equivalents $ 416 $ 446
Accounts receivable, less allowance for doubtful accounts of $8 at April 30 and $9 at October 31 954 769
Inventories:    
Barreled whiskey 1,563 1,490
Finished goods 438 452
Work in process 376 396
Raw materials and supplies 188 218
Total inventories 2,565 2,556
Other current assets 261 265
Total current assets 4,196 4,036
Property, plant, and equipment, net 1,060 1,074
Goodwill 1,468 1,455
Other intangible assets 1,000 990
Equity method investments 272 270
Deferred tax assets 60 69
Other assets 276 272
Total assets 8,332 8,166
Liabilities    
Accounts payable and accrued expenses 695 793
Accrued income taxes 46 38
Short-term borrowings 512 428
Current portion of long-term debt 300 300
Total current liabilities 1,553 1,559
Long-term debt 2,391 2,372
Deferred tax liabilities 290 315
Accrued pension and other postretirement benefits 159 160
Other liabilities 234 243
Total liabilities 4,627 4,649
Commitments and contingencies
Stockholders' Equity    
Additional paid-in capital 21 13
Retained earnings 4,508 4,261
Accumulated other comprehensive income (loss), net of tax (291) (221)
Treasury stock, at cost (11,932,000 and 11,871,000 shares at April 30 and October 31, respectively) (605) (608)
Total stockholders' equity 3,705 3,517
Total liabilities and stockholders' equity 8,332 8,166
Common stock, Class A, voting [Member]    
Stockholders' Equity    
Common stock 25 25
Common stock, Class B, nonvoting [Member]    
Stockholders' Equity    
Common stock $ 47 $ 47
v3.24.3
Condensed Consolidated Balance Sheets (Parenthetical) - USD ($)
$ in Millions
Oct. 31, 2024
Apr. 30, 2024
Statement of Financial Position [Abstract]    
Allowance for doubtful accounts $ 9 $ 8
Treasury Stock, Common, Shares 11,871,000 11,932,000
Common Class A [Member]    
Class of Stock [Line Items]    
Common stock, par value (dollars per share) $ 0.15 $ 0.15
Common stock, shares authorized 170,000,000 170,000,000
Common stock, shares issued 170,000,000 170,000,000
Nonvoting Common Stock [Member]    
Class of Stock [Line Items]    
Common stock, par value (dollars per share) $ 0.15 $ 0.15
Common stock, shares authorized 400,000,000 400,000,000
Common stock, shares issued 314,532,000 314,532,000
v3.24.3
Condensed Consolidated Statements of Cash Flows (Unaudited) - USD ($)
$ in Millions
 6 Months Ended
Oct. 31, 2024
Oct. 31, 2023
Cash flows from operating activities:    
Net income $ 453 $ 473
Adjustments to reconcile net income to net cash provided by operations:    
Depreciation and amortization 44 41
Stock-based compensation expense 13 11
Deferred income tax benefit (12) (15)
Change in fair value of contingent consideration 5 (2)
Equity method investment income (2) 0
Other, net (10) 0
Changes in assets and liabilities:    
Accounts receivable (194) (103)
Inventories (76) (337)
Other current assets (2) 46
Accounts payable and accrued expenses (70) (31)
Accrued income taxes 6 16
Other operating assets and liabilities (26) (2)
Cash provided by operating activities 129 97
Cash flows from investing activities:    
Additions to property, plant, and equipment (72) (79)
Proceeds from sale of assets 51 13
Other, net 0 5
Cash used for investing activities (21) (61)
Cash flows from financing activities:    
Net change in short-term borrowings 83 220
Payments of withholding taxes related to stock-based awards (2) (4)
Acquisition of treasury stock 0 (42)
Dividends paid (206) (197)
Other, net (4) 0
Cash used for financing activities (129) (23)
Effect of exchange rate changes on cash, cash equivalents, and restricted cash (9) (7)
Net increase (decrease) in cash, cash equivalents, and restricted cash (30) 6
Cash, cash equivalents, and restricted cash at beginning of period 456 384
Cash, cash equivalents, and restricted cash at end of period 426 390
Less: Restricted cash (included in other current assets) at end of period (10) (10)
Less: Cash included in assets held for sale at end of period 0 (7)
Cash and cash equivalents at end of period 416 373
Supplemental information:    
Non-cash additions to property, plant and equipment 8 15
Right-of-use assets obtained in exchange for new lease obligations $ 20 $ 24
v3.24.3
Condensed Consolidated Financial Statements
 6 Months Ended
Oct. 31, 2024
Organization, Consolidation and Presentation of Financial Statements [Abstract]  
Condensed Consolidated Financial Statements Condensed Consolidated Financial Statements 
We prepared the accompanying unaudited condensed consolidated financial statements pursuant to the rules and regulations of the U.S. Securities and Exchange Commission for interim financial information. In accordance with those rules and regulations, we condensed or omitted certain information and disclosures normally included in annual financial statements prepared in accordance with U.S. generally accepted accounting principles (GAAP). In our opinion, the accompanying financial statements include all adjustments, consisting only of normal recurring adjustments (unless otherwise indicated), necessary for a fair statement of our financial results for the periods presented in these financial statements. The results for interim periods are not necessarily indicative of future or annual results.

We suggest that you read these condensed financial statements together with the financial statements and footnotes included in our Annual Report on Form 10-K for the fiscal year ended April 30, 2024 (2024 Form 10-K). We prepared the accompanying financial statements on a basis that is substantially consistent with the accounting principles applied in our 2024 Form 10-K.

Accounting standards not yet adopted. 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. The update also requires interim disclosure of segment information that is currently required only on an annual basis. We are required to adopt the updated standard for annual disclosures beginning in fiscal 2025, and for interim disclosures in fiscal 2026, with earlier adoption permitted. The update is to be applied retroactively.

In December 2023, the FASB issued an updated accounting standard requiring additional annual 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, with earlier adoption permitted. The update can be applied either prospectively or retrospectively.

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. The update can be applied either prospectively or retrospectively.

We are currently evaluating the impact that adopting these accounting standards updates will have on our disclosures.
v3.24.3
Earnings Per Share
 6 Months Ended
Oct. 31, 2024
Earnings Per Share [Abstract]  
Earnings Per Share Earnings Per Share 
We calculate basic earnings per share by dividing net income available to common stockholders by the weighted average number of common shares outstanding during the period. Diluted earnings per share further includes the dilutive effect of stock-based compensation awards. We calculate that dilutive effect using the “treasury stock method” (as defined by GAAP).
The following table presents information concerning basic and diluted earnings per share:
Three Months EndedSix Months Ended
October 31,October 31,
(Dollars in millions, except per share amounts)2023202420232024
Net income available to common stockholders$242 $258 $473 $453 
Share data (in thousands):  
Basic average common shares outstanding479,200 472,660 479,262 472,647 
Dilutive effect of stock-based awards915 397 972 350 
Diluted average common shares outstanding480,115 473,057 480,234 472,997 
Basic earnings per share$0.50 $0.55 $0.99 $0.96 
Diluted earnings per share$0.50 $0.55 $0.98 $0.96 

We excluded common stock-based awards for approximately 1,688,000 shares and 3,018,000 shares from the calculation of diluted earnings per share for the three months ended October 31, 2023 and 2024, respectively. We excluded common stock-based awards for approximately 1,486,000 shares and 2,800,000 shares from the calculation of diluted earnings per share for the six months ended October 31, 2023 and 2024, respectively. We excluded those awards because they were not dilutive for those periods under the treasury stock method.
v3.24.3
Inventories
 6 Months Ended
Oct. 31, 2024
Inventory Disclosure [Abstract]  
Inventories Inventories
We value some of our consolidated inventories, including most of our U.S. inventories, at the lower of cost, using the last-in, first-out (LIFO) method or market value. If the LIFO method had not been used, inventories at current cost would have been $512 million higher than reported as of April 30, 2024, and $552 million higher than reported as of October 31, 2024. Changes in the LIFO valuation reserve for interim periods are based on an allocation of the projected change for the entire fiscal year, recognized proportionately over the remainder of the fiscal year.
v3.24.3
Goodwill and Other Intangible Assets
 6 Months Ended
Oct. 31, 2024
Goodwill and Intangible Assets Disclosure [Abstract]  
Goodwill and Other Intangible Assets Goodwill and Other Intangible Assets
The following table shows the changes in goodwill (which includes no accumulated impairment losses) and other intangible assets during the six months ended October 31, 2024:
(Dollars in millions)Goodwill
Other Intangible Assets
Balance at April 30, 2024
$1,455 $990 
Foreign currency translation adjustment13 10 
Balance at October 31, 2024
$1,468 $1,000 

Our other intangible assets consist of trademarks and brand names, all with indefinite useful lives.
v3.24.3
Equity Method Investments
 6 Months Ended
Oct. 31, 2024
Equity Method Investments and Joint Ventures [Abstract]  
Equity Method Investments Equity Method Investments
Our equity method investments include a 21.4% ownership of the common stock of The Duckhorn Portfolio, Inc. (“Duckhorn”), which we obtained as partial consideration for our sale of the Sonoma-Cutrer wine business to Duckhorn on April 30, 2024. Our other equity method investments are immaterial.

The carrying amount of our investment in Duckhorn was $267 million as of April 30, 2024, reflecting the fair value of the common stock, based on its quoted market price at the April 30, 2024 closing date of the transaction. The carrying amount as of October 31, 2024, was $269 million, which includes the initial carrying amount of $267 million and $2 million subsequently recognized for our share of Duckhorn’s earnings.

The difference between the carrying amount of the investment and our proportionate share of the net assets of Duckhorn was not material as of both April 30, 2024, and October 31, 2024. As of October 31, 2024, the fair value of the investment was $346 million.
In connection with our sale of the Sonoma-Cutrer wine business to Duckhorn, we agreed to a lock-up provision under which we are restricted from selling or otherwise disposing of our equity investment in Duckhorn. The restriction period will terminate no later than October 31, 2025.

Also, effective April 30, 2024, we entered into a transition services agreement (TSA) with Duckhorn related to the sale of the Sonoma-Cutrer wine business. Our cost of sales for the three months and six months ended October 31, 2024, included $2 million and $24 million, respectively, for Sonoma-Cuter products purchased from Duckhorn under the TSA. Fees earned for transition services provided to Duckhorn under the TSA were immaterial. Services related to the TSA ended on or about August 31, 2024.

On October 6, 2024, Duckhorn entered into a definitive agreement pursuant to which Duckhorn will be acquired by private equity funds. Under the terms of the agreement, upon completion of the proposed transaction, we would receive cash of $350 million in exchange for our 21.4% ownership interest in Duckhorn. The completion of the transaction, which is expected to occur by April 30, 2025, is subject to customary closing conditions, including approval by Duckhorn’s stockholders.
v3.24.3
Contingencies
 6 Months Ended
Oct. 31, 2024
Commitments and Contingencies Disclosure [Abstract]  
Contingencies Contingencies
We operate in a litigious environment, and we are sued in the normal course of business. Sometimes plaintiffs seek substantial damages. Significant judgment is required in predicting the outcome of these suits and claims, many of which take years to adjudicate. We accrue estimated costs for a contingency when we believe that a loss is probable and we can make a reasonable estimate of the loss, and then adjust the accrual as appropriate to reflect changes in facts and circumstances. We do not believe it is reasonably possible that these existing loss contingencies, individually or in the aggregate, would have a material adverse effect on our financial position, results of operations, or liquidity. No material accrued loss contingencies were recorded as of October 31, 2024.
v3.24.3
Debt
 6 Months Ended
Oct. 31, 2024
Debt Disclosure [Abstract]  
Debt Debt
Our long-term debt (net of unamortized discount and issuance costs) consisted of:
(Principal and carrying amounts in millions)April 30, 2024October 31,
2024
3.50% senior notes, $300 principal amount, due April 15, 2025
$300 $300 
1.20% senior notes, €300 principal amount, due July 7, 2026
321 325 
2.60% senior notes, £300 principal amount, due July 7, 2028
375 388 
4.75% senior notes, $650 principal amount, due April 15, 2033
643 644 
4.00% senior notes, $300 principal amount, due April 15, 2038
295 296 
3.75% senior notes, $250 principal amount, due January 15, 2043
248 248 
4.50% senior notes, $500 principal amount, due July 15, 2045
490 490 
2,672 2,691 
Less current portion300 300 
$2,372 $2,391 
Our short-term borrowings consisted of borrowings under our commercial paper program, as follows:
(Dollars in millions)April 30, 2024October 31,
2024
Commercial paper (par amount)$429$514
Average interest rate5.49%4.93%
Average remaining days to maturity1224
v3.24.3
Stockholders' Equity
 6 Months Ended
Oct. 31, 2024
Equity, Attributable to Parent [Abstract]  
Stockholders' Equity Stockholders’ Equity
The following table shows the changes in stockholders’ equity by quarter during the six months ended October 31, 2023:
(Dollars in millions)
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 income231 231 
Net other comprehensive income (loss)36 36 
Declaration of cash dividends (197)(197)
Stock-based compensation expense4 4 
Stock issued under compensation plans3 3 
Loss on issuance of treasury stock issued under compensation plans(4)(3)(7)
Balance at July 31, 2023
25 47 1 3,674 (199)(210)3,338 
Net income242 242 
Net other comprehensive income (loss)(91)(91)
Acquisition of treasury stock(42)(42)
Stock-based compensation expense7 7 
Balance at October 31, 2023
$25 $47 $8 $3,916 $(290)$(252)$3,454 

The following table shows the changes in stockholders’ equity by quarter during the six months ended October 31, 2024:
(Dollars in millions)
Class A Common Stock
Class B Common Stock
Additional Paid-in Capital
Retained Earnings
AOCI
Treasury Stock
Total
Balance at April 30, 2024$25 $47 $13 $4,261 $(221)$(608)$3,517 
Net income195 195 
Net other comprehensive income (loss)(43)(43)
Declaration of cash dividends(206)(206)
Stock-based compensation expense4 4 
Stock issued under compensation plans3 3 
Loss on issuance of treasury stock issued under compensation plans(5)(5)
Balance at July 31, 202425 47 12 4,250 (264)(605)3,465 
Net income258 258 
Net other comprehensive income (loss)(27)(27)
Stock-based compensation expense9 9 
Balance at October 31, 2024$25 $47 $21 $4,508 $(291)$(605)$3,705 

The following table shows the change in each component of accumulated other comprehensive income (AOCI), net of tax, during the six months ended October 31, 2024:
(Dollars in millions)
Currency Translation Adjustments
Cash Flow Hedge Adjustments
Postretirement Benefits Adjustments
Total AOCI
Balance at April 30, 2024
$(111)$10 $(120)$(221)
Net other comprehensive income (loss)(68)(3)1 (70)
Balance at October 31, 2024
$(179)$7 $(119)$(291)
The following table shows the cash dividends declared per share on our Class A and Class B common stock during the six months ended October 31, 2024:
Declaration DateRecord DatePayable DateAmount per Share
May 23, 2024June 7, 2024July 1, 2024$0.2178
July 25, 2024September 3, 2024October 1, 2024$0.2178
On November 21, 2024, our Board of Directors increased the quarterly cash dividend on our Class A and Class B common stock from $0.2178 to $0.2265 per share. The quarterly cash dividend is payable on January 2, 2025, to stockholders of record on December 6, 2024.
v3.24.3
Net Sales
 6 Months Ended
Oct. 31, 2024
Net Sales [Abstract]  
Net Sales Net Sales 
The following table shows our net sales by geography:
Three Months EndedSix Months Ended
October 31,October 31,
(Dollars in millions)2023202420232024
United States
$531 $489 $973 $908 
Developed International1
291 289 600 569 
Emerging2
221 242 442 427 
Travel Retail3
44 45 90 86 
Non-branded and bulk4
20 30 40 56 
Total$1,107 $1,095 $2,145 $2,046 
1Represents net sales of branded products to “advanced economies” as defined by the International Monetary Fund (IMF), excluding the United States. Our top developed international markets are Germany, Australia, the United Kingdom, France, Canada, and Spain.
2Represents net sales of branded products to “emerging and developing economies” as defined by the IMF. Our top emerging markets are Mexico, Poland, and Brazil.
3Represents net sales of branded products to global duty-free customers, other travel retail customers, and the U.S. military, regardless of customer location.
4Includes net sales of used barrels, contract bottling services, and non-branded bulk whiskey, regardless of customer location.

The following table shows our net sales by product category:
Three Months EndedSix Months Ended
October 31,October 31,
(Dollars in millions)2023202420232024
Whiskey1
$739 $769 $1,436 $1,428 
Ready-to-Drink2
132 133 270 254 
Tequila3
81 72 162 134 
Non-branded and bulk4
20 30 40 56 
Rest of portfolio5
135 91 237 174 
Total$1,107 $1,095 $2,145 $2,046 
1Includes all whiskey spirits and whiskey-based flavored liqueurs. The brands included in this category are the Jack Daniel's family of brands (excluding the “ready-to-drink” products outlined below), the Woodford Reserve family of brands, the Old Forester family of brands, The GlenDronach, Benriach, Glenglassaugh, Slane Irish Whiskey, and Coopers’ Craft.
2Includes the Jack Daniel’s ready-to-drink (RTD) and ready-to-pour (RTP) products, New Mix, and other RTD/RTP products.
3Includes el Jimador, the Herradura family of brands, and other tequilas.
4Includes net sales of used barrels, contract bottling services, and non-branded bulk whiskey.
5Includes Sonoma-Cutrer (which was divested on April 30, 2024), Korbel California Champagnes, Diplomático, Gin Mare, Chambord, Finlandia Vodka (which was divested on November 1, 2023), Fords Gin, and Korbel Brandy.
v3.24.3
Pension and Other Postretirement Benefits
 6 Months Ended
Oct. 31, 2024
Retirement Benefits [Abstract]  
Pension and Other Postretirement Benefits Pension Costs
The following table shows the components of the net cost recognized for our U.S. pension plans. Similar information for other defined benefit plans is not presented due to immateriality.
Three Months EndedSix Months Ended
October 31,October 31,
(Dollars in millions)2023202420232024
Service cost$5 $4 $9 $8 
Interest cost8 9 17 18 
Expected return on plan assets(10)(10)(19)(19)
Amortization of net actuarial loss2 1 3 1 
Net cost$5 $4 $10 $8 
v3.24.3
Income Taxes
 6 Months Ended
Oct. 31, 2024
Income Tax Disclosure [Abstract]  
Income Taxes Income Taxes
Our consolidated interim effective tax rate is based on our expected annual operating income, statutory tax rates, and income tax laws in the various jurisdictions where we operate. Significant or unusual items, including adjustments to accruals for tax uncertainties, are recognized in the fiscal quarter in which the related event or a change in judgment occurs. The effective tax rate on ordinary income for the full fiscal year is expected to be 21.8%, which is higher than the U.S. federal statutory rate of 21.0%, due to the impact of state taxes and the tax effects of foreign operations, partially offset by the beneficial impact of the foreign-derived intangible income deduction.

The effective tax rate of 20.1% for the six months ended October 31, 2024, was lower than the expected tax rate of 21.8% on ordinary income for the full fiscal year ending April 30, 2025, primarily due to the beneficial impact of state income tax refunds related to amended prior year returns, partially offset by the impact of increased valuation allowances in the current period. The effective tax rate of 20.1% for the six months ended October 31, 2024, was lower than the effective tax rate of 22.4% for the same period last year, primarily due to the beneficial impact of state income tax refunds related to amended prior year returns and the absence of an unfavorable tax rate change in the prior fiscal year, partially offset by the impact of increased valuation allowances in the current period.

The OECD (Organization for Economic Co-operation and Development) 15% global minimum tax under the Pillar Two Model Rules, which is now effective in countries with enacted legislation, did not materially impact our financial results in the six months ended October 31, 2024. We will continue to evaluate the impact in future periods as previously-enacting countries issue related guidance and additional countries consider adoption of the global minimum tax rules.
v3.24.3
Derivative Financial Instruments and Hedging Activities
 6 Months Ended
Oct. 31, 2024
Derivative Instruments and Hedging Activities Disclosure [Abstract]  
Derivative Financial Instruments and Hedging Activities Derivative Financial Instruments and Hedging Activities
We are subject to market risks, including the effect of fluctuations in foreign currency exchange rates, commodity prices, and interest rates. We use derivatives to help manage financial exposures that occur in the normal course of business. We formally document the purpose of each derivative contract, which includes linking the contract to the financial exposure it is designed to mitigate. We do not hold or issue derivatives for trading or speculative purposes.

We use currency derivative contracts to limit our exposure to the foreign currency exchange rate risk that we cannot mitigate internally by using netting strategies. We designate most of these contracts as cash flow hedges of forecasted transactions (expected to occur within two years). We record all changes in the fair value of cash flow hedges in AOCI until the underlying hedged transaction occurs, at which time we reclassify that amount to earnings.

Some of our currency derivatives are not designated as hedges because we use them to partially offset the immediate earnings impact of changes in foreign currency exchange rates on existing assets or liabilities. We immediately recognize the change in fair value of these contracts in earnings.

We had outstanding currency derivatives, related primarily to our euro, British pound, and Australian dollar exposures, with notional amounts for all hedged currencies totaling $566 million at April 30, 2024, and $515 million at October 31, 2024. The maximum term of outstanding derivative contracts was 24 months at both April 30, 2024 and October 31, 2024.

We also use foreign currency-denominated debt instruments to help manage our foreign currency exchange rate risk. We designate a portion of those debt instruments as net investment hedges, which are intended to mitigate foreign currency
exposure related to non-U.S. dollar net investments in certain foreign subsidiaries. Any change in value of the designated portion of the hedging instruments is recorded in AOCI, offsetting the foreign currency translation adjustment of the related net investments that is also recorded in AOCI. The amount of foreign currency-denominated debt instruments designated as net investment hedges was $497 million at April 30, 2024, and $512 million at October 31, 2024.

At inception, we expect each financial instrument designated as a hedge to be highly effective in offsetting the financial exposure it is designed to mitigate. We assess the effectiveness of our hedges continually. If we determine that any financial instruments designated as hedges are no longer highly effective, we discontinue hedge accounting for those instruments.

We use forward purchase contracts with suppliers to protect against corn price volatility. We expect to take physical delivery of the corn underlying each contract and use it for production over a reasonable period of time. Accordingly, we account for these contracts as normal purchases rather than as derivative instruments.

The following table presents the pre-tax impact that changes in the fair value of our derivative instruments and non-derivative hedging instruments had on AOCI and earnings:
Three Months Ended
October 31,
(Dollars in millions)Classification20232024
Derivative Instruments
Currency derivatives designated as cash flow hedges:   
Net gain (loss) recognized in AOCIn/a$21 $(2)
Net gain (loss) reclassified from AOCI into earningsSales5 (1)
Currency derivatives not designated as hedging instruments:   
Net gain (loss) recognized in earningsSales$4 $1 
Net gain (loss) recognized in earningsOther income (expense), net(1)(2)
Non-Derivative Hedging Instruments
Foreign currency-denominated debt designated as net investment hedge:
Net gain (loss) recognized in AOCIn/a$26 $(6)
Total amounts presented in the accompanying condensed consolidated statements of operations for line items affected by the net gains (losses) shown above:
Sales$1,405 $1,376 
Other income (expense), net— 8 
Six Months Ended
October 31,
(Dollars in millions)Classification20232024
Derivative Instruments
Currency derivatives designated as cash flow hedges:   
Net gain (loss) recognized in AOCIn/a$17 $(1)
Net gain (loss) reclassified from AOCI into earningsSales8 3 
Currency derivatives not designated as hedging instruments:   
Net gain (loss) recognized in earningsSales$2 $— 
Net gain (loss) recognized in earningsOther income (expense), net6 (6)
Non-Derivative Hedging Instruments
Foreign currency-denominated debt designated as net investment hedge:
Net gain (loss) recognized in AOCIn/a$17 $(15)
Total amounts presented in the accompanying condensed consolidated statements of operations for line items affected by the net gains (losses) shown above:
Sales$2,731 $2,587 
Other income (expense), net7 38 

We expect to reclassify $4 million of deferred net gains on cash flow hedges recorded in AOCI as of October 31, 2024 to earnings during the next 12 months. This reclassification would offset the anticipated earnings impact of the underlying hedged exposures. The actual amounts that we ultimately reclassify to earnings will depend on the exchange rates in effect when the underlying hedged transactions occur.

The following table presents the fair values of our derivative instruments:
April 30, 2024October 31, 2024
(Dollars in millions)
Classification
Derivative Assets
Derivative Liabilities
Derivative Assets
Derivative Liabilities
Designated as cash flow hedges:
Currency derivativesOther current assets$11 $(2)$8 $(3)
Currency derivativesOther assets1 (1)1 — 
Not designated as hedges:
Currency derivativesAccrued expenses— (1)— (1)

The fair values reflected in the above table are presented on a gross basis. However, as discussed further below, the fair values of those instruments subject to net settlement agreements are presented on a net basis in our balance sheets.

In our statements of cash flows, we classify cash flows related to cash flow hedges in the same category as the cash flows from the hedged items.

Credit risk. We are exposed to credit-related losses if the counterparties to our derivative contracts default. This credit risk is limited to the fair value of the contracts. To manage this risk, we contract only with major financial institutions that have investment-grade credit ratings and with whom we have standard International Swaps and Derivatives Association (ISDA) agreements that allow for net settlement of the derivative contracts. Also, we have established counterparty credit guidelines that we monitor regularly, and we monetize contracts when we believe it is warranted. Because of these safeguards, we believe we have no derivative positions that warrant credit valuation adjustments.

Our derivative instruments require us to maintain a specific level of creditworthiness, which we have maintained. If our creditworthiness were to fall below that level, then the counterparties to our derivative instruments could request immediate payment or collateralization for derivative instruments in net liability positions. The aggregate fair value of our derivatives with
creditworthiness requirements that were in a net liability position was $1 million at April 30, 2024, and $1 million at October 31, 2024.

Offsetting. As noted above, our derivative contracts are governed by ISDA agreements that allow for net settlement of derivative contracts with the same counterparty. It is our policy to present the fair values of current derivatives (that is, those with a remaining term of 12 months or less) with the same counterparty on a net basis in our balance sheets. Similarly, we present the fair values of noncurrent derivatives with the same counterparty on a net basis. We do not net current derivatives with noncurrent derivatives in our balance sheets.

The following table summarizes the gross and net amounts of our derivative contracts:
(Dollars in millions)
Gross Amounts of Recognized Assets (Liabilities)
Gross Amounts Offset in Balance Sheet
Net Amounts Presented in Balance Sheet
Gross Amounts Not Offset in Balance Sheet
Net Amounts
April 30, 2024
Derivative assets$12 $(3)$9 $— $9 
Derivative liabilities(4)3 (1)— (1)
October 31, 2024
Derivative assets9 (3)6 — 6 
Derivative liabilities(4)3 (1)— (1)

No cash collateral was received or pledged related to our derivative contracts as of April 30, 2024, or October 31, 2024.
v3.24.3
Fair Value Measurements
 6 Months Ended
Oct. 31, 2024
Fair Value Disclosures [Abstract]  
Fair Value Measurements Fair Value Measurements
The following table summarizes the assets and liabilities measured or disclosed at fair value on a recurring basis:
April 30, 2024October 31, 2024
 CarryingFairCarryingFair
(Dollars in millions)AmountValueAmountValue
Assets  
Cash and cash equivalents$446 $446 $416 $416 
Currency derivatives, net9 9 6 6 
Liabilities  
Currency derivatives, net1 1 1 1 
Contingent consideration
69 69 75 75 
Short-term borrowings428 428 512 512 
Long-term debt (including current portion)
2,672 2,468 2,691 2,547 

Fair value is defined as the exchange price that would be received for an asset or paid to transfer a liability in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants at the measurement date. We categorize the fair values of assets and liabilities into three levels based on the assumptions (inputs) used to determine those values. Level 1 provides the most reliable measure of fair value, while Level 3 generally requires significant management judgment. The three levels are:
•Level 1 – Quoted prices (unadjusted) in active markets for identical assets or liabilities.
•Level 2 – Observable inputs other than those included in Level 1, such as quoted prices for similar assets and liabilities in active markets; quoted prices for identical or similar assets and liabilities in inactive markets; or other inputs that are observable or can be derived from or corroborated by observable market data.
•Level 3 – Unobservable inputs supported by little or no market activity.

We determine the fair values of our currency derivatives (forward contracts) using standard valuation models. The significant inputs used in these models, which are readily available in public markets or can be derived from observable market transactions, include the applicable spot exchange rates, forward exchange rates, and interest rates. These fair value measurements are categorized as Level 2 within the valuation hierarchy.
We determine the fair value of long-term debt primarily based on the prices at which identical or similar debt has recently traded in the market and also considering the overall market conditions on the date of valuation. These fair value measurements are categorized as Level 2 within the valuation hierarchy.

The fair values of cash, cash equivalents, and short-term borrowings approximate the carrying amounts due to the short maturities of these instruments.

We determine the fair value of our contingent consideration liability using a Monte Carlo simulation model, which requires the use of Level 3 inputs, such as projected future net sales, discount rates, and volatility rates. Changes in any of these Level 3 inputs could result in material changes to the fair value of the contingent consideration and could materially impact the amount of noncash expense (or income) recorded each reporting period.

The following table shows the changes in our contingent consideration liability during the six months ended October 31, 2024:
(Dollars in millions)
Balance at April 30, 2024$69 
Change in fair value1
5 
Foreign currency translation adjustment1 
Balance at October 31, 2024$75 
1Classified as “other expense (income), net” in the accompanying condensed consolidated statement of operations.

We measure some assets and liabilities at fair value on a nonrecurring basis. That is, we do not measure them at fair value on an ongoing basis, but we do adjust them to fair value in some circumstances (for example, when we determine that an asset is impaired). No material nonrecurring fair value measurements were required during the periods presented in these financial statements.
v3.24.3
Other Comprehensive Income
 6 Months Ended
Oct. 31, 2024
Statement of Comprehensive Income [Abstract]  
Other Comprehensive Income Other Comprehensive Income
The following table shows the components of net other comprehensive income (loss):
Three Months EndedThree Months Ended
October 31, 2023October 31, 2024
(Dollars in millions)Pre-TaxTaxNetPre-TaxTaxNet
Currency translation adjustments:
Net gain (loss) on currency translation$(98)$(6)$(104)$(27)$1 $(26)
Reclassification to earnings— — — — — — 
Other comprehensive income (loss), net(98)(6)(104)(27)1 (26)
Cash flow hedge adjustments:
Net gain (loss) on hedging instruments21 (5)16 (2)— (2)
Reclassification to earnings1
(5)1 (4)1 — 1 
Other comprehensive income (loss), net16 (4)12 (1)— (1)
Postretirement benefits adjustments:
Net actuarial gain (loss) and prior service cost— — — — — — 
Reclassification to earnings2
2 (1)1 — — — 
Other comprehensive income (loss), net2 (1)1 — — — 
Total other comprehensive income (loss), net$(80)$(11)$(91)$(28)$1 $(27)
Six Months EndedSix Months Ended
October 31, 2023October 31, 2024
(Dollars in millions)Pre-TaxTaxNetPre-TaxTaxNet
Currency translation adjustments:
Net gain (loss) on currency translation$(61)$(4)$(65)$(71)$3 $(68)
Reclassification to earnings— — — — — — 
Other comprehensive income (loss), net(61)(4)(65)(71)3 (68)
Cash flow hedge adjustments:
Net gain (loss) on hedging instruments17 (4)13 (1)— (1)
Reclassification to earnings1
(8)2 (6)(3)1 (2)
Other comprehensive income (loss), net9 (2)7 (4)1 (3)
Postretirement benefits adjustments:
Net actuarial gain (loss) and prior service cost— — — — — — 
Reclassification to earnings2
4 (1)3 1 — 1 
Other comprehensive income (loss), net4 (1)3 1 — 1 
Total other comprehensive income (loss), net$(48)$(7)$(55)$(74)$4 $(70)
1Pre-tax amount for each period is classified as sales in the accompanying condensed consolidated statements of operations.
2Pre-tax amount for each period is classified as non-operating postretirement expense in the accompanying condensed consolidated statements of operations.
v3.24.3
Pay vs Performance Disclosure - USD ($)
$ in Millions
 3 Months Ended 6 Months Ended
Oct. 31, 2024
Jul. 31, 2024
Oct. 31, 2023
Jul. 31, 2023
Oct. 31, 2024
Oct. 31, 2023
Pay vs Performance Disclosure            
Net income $ 258 $ 195 $ 242 $ 231 $ 453 $ 473
v3.24.3
Insider Trading Arrangements
 6 Months Ended
Oct. 31, 2024
Trading Arrangements, by Individual  
Rule 10b5-1 Arrangement Adopted false
Non-Rule 10b5-1 Arrangement Adopted false
Rule 10b5-1 Arrangement Terminated false
Non-Rule 10b5-1 Arrangement Terminated false
v3.24.3
Condensed Consolidated Financial Statements (Policies)
 6 Months Ended
Oct. 31, 2024
Organization, Consolidation and Presentation of Financial Statements [Abstract]  
New Accounting Pronouncements, Policy [Policy Text Block]
Accounting standards not yet adopted. 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. The update also requires interim disclosure of segment information that is currently required only on an annual basis. We are required to adopt the updated standard for annual disclosures beginning in fiscal 2025, and for interim disclosures in fiscal 2026, with earlier adoption permitted. The update is to be applied retroactively.

In December 2023, the FASB issued an updated accounting standard requiring additional annual 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, with earlier adoption permitted. The update can be applied either prospectively or retrospectively.

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. The update can be applied either prospectively or retrospectively.

We are currently evaluating the impact that adopting these accounting standards updates will have on our disclosures.
v3.24.3
Inventories (Policies)
 6 Months Ended
Oct. 31, 2024
Inventory Disclosure [Abstract]  
Inventory, Policy [Policy Text Block] We value some of our consolidated inventories, including most of our U.S. inventories, at the lower of cost, using the last-in, first-out (LIFO) method or market value.
v3.24.3
Derivative Financial Instruments and Hedging Activities (Policies)
 6 Months Ended
Oct. 31, 2024
Derivative Instruments and Hedging Activities Disclosure [Abstract]  
Classification of Cash Flows Related to Cash Flow Hedges [Policy Text Block]
In our statements of cash flows, we classify cash flows related to cash flow hedges in the same category as the cash flows from the hedged items.
Derivatives, Offsetting Fair Value Amounts, Policy [Policy Text Block] Offsetting. As noted above, our derivative contracts are governed by ISDA agreements that allow for net settlement of derivative contracts with the same counterparty. It is our policy to present the fair values of current derivatives (that is, those with a remaining term of 12 months or less) with the same counterparty on a net basis in our balance sheets. Similarly, we present the fair values of noncurrent derivatives with the same counterparty on a net basis. We do not net current derivatives with noncurrent derivatives in our balance sheet
v3.24.3
Earnings Per Share (Tables)
 6 Months Ended
Oct. 31, 2024
Earnings Per Share [Abstract]  
Schedule of Earnings Per Share, Basic and Diluted [Table Text Block]
The following table presents information concerning basic and diluted earnings per share:
Three Months EndedSix Months Ended
October 31,October 31,
(Dollars in millions, except per share amounts)2023202420232024
Net income available to common stockholders$242 $258 $473 $453 
Share data (in thousands):  
Basic average common shares outstanding479,200 472,660 479,262 472,647 
Dilutive effect of stock-based awards915 397 972 350 
Diluted average common shares outstanding480,115 473,057 480,234 472,997 
Basic earnings per share$0.50 $0.55 $0.99 $0.96 
Diluted earnings per share$0.50 $0.55 $0.98 $0.96 
v3.24.3
Goodwill and Other Intangible Assets (Tables)
 6 Months Ended
Oct. 31, 2024
Goodwill and Intangible Assets Disclosure [Abstract]  
Schedule of Intangible Assets and Goodwill [Table Text Block]
The following table shows the changes in goodwill (which includes no accumulated impairment losses) and other intangible assets during the six months ended October 31, 2024:
(Dollars in millions)Goodwill
Other Intangible Assets
Balance at April 30, 2024
$1,455 $990 
Foreign currency translation adjustment13 10 
Balance at October 31, 2024
$1,468 $1,000 
v3.24.3
Debt (Tables)
 6 Months Ended
Oct. 31, 2024
Debt Disclosure [Abstract]  
Schedule of Long-term Debt Instruments [Table Text Block]
Our long-term debt (net of unamortized discount and issuance costs) consisted of:
(Principal and carrying amounts in millions)April 30, 2024October 31,
2024
3.50% senior notes, $300 principal amount, due April 15, 2025
$300 $300 
1.20% senior notes, €300 principal amount, due July 7, 2026
321 325 
2.60% senior notes, £300 principal amount, due July 7, 2028
375 388 
4.75% senior notes, $650 principal amount, due April 15, 2033
643 644 
4.00% senior notes, $300 principal amount, due April 15, 2038
295 296 
3.75% senior notes, $250 principal amount, due January 15, 2043
248 248 
4.50% senior notes, $500 principal amount, due July 15, 2045
490 490 
2,672 2,691 
Less current portion300 300 
$2,372 $2,391 
Schedule of Short-term Debt [Table Text Block]
Our short-term borrowings consisted of borrowings under our commercial paper program, as follows:
(Dollars in millions)April 30, 2024October 31,
2024
Commercial paper (par amount)$429$514
Average interest rate5.49%4.93%
Average remaining days to maturity1224
v3.24.3
Stockholders' Equity (Tables)
 6 Months Ended
Oct. 31, 2024
Equity, Attributable to Parent [Abstract]  
Schedule of Stockholders Equity [Table Text Block]
The following table shows the changes in stockholders’ equity by quarter during the six months ended October 31, 2023:
(Dollars in millions)
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 income231 231 
Net other comprehensive income (loss)36 36 
Declaration of cash dividends (197)(197)
Stock-based compensation expense4 4 
Stock issued under compensation plans3 3 
Loss on issuance of treasury stock issued under compensation plans(4)(3)(7)
Balance at July 31, 2023
25 47 1 3,674 (199)(210)3,338 
Net income242 242 
Net other comprehensive income (loss)(91)(91)
Acquisition of treasury stock(42)(42)
Stock-based compensation expense7 7 
Balance at October 31, 2023
$25 $47 $8 $3,916 $(290)$(252)$3,454 

The following table shows the changes in stockholders’ equity by quarter during the six months ended October 31, 2024:
(Dollars in millions)
Class A Common Stock
Class B Common Stock
Additional Paid-in Capital
Retained Earnings
AOCI
Treasury Stock
Total
Balance at April 30, 2024$25 $47 $13 $4,261 $(221)$(608)$3,517 
Net income195 195 
Net other comprehensive income (loss)(43)(43)
Declaration of cash dividends(206)(206)
Stock-based compensation expense4 4 
Stock issued under compensation plans3 3 
Loss on issuance of treasury stock issued under compensation plans(5)(5)
Balance at July 31, 202425 47 12 4,250 (264)(605)3,465 
Net income258 258 
Net other comprehensive income (loss)(27)(27)
Stock-based compensation expense9 9 
Balance at October 31, 2024$25 $47 $21 $4,508 $(291)$(605)$3,705 
Schedule of Accumulated Other Comprehensive Income (Loss) [Table Text Block]
The following table shows the change in each component of accumulated other comprehensive income (AOCI), net of tax, during the six months ended October 31, 2024:
(Dollars in millions)
Currency Translation Adjustments
Cash Flow Hedge Adjustments
Postretirement Benefits Adjustments
Total AOCI
Balance at April 30, 2024
$(111)$10 $(120)$(221)
Net other comprehensive income (loss)(68)(3)1 (70)
Balance at October 31, 2024
$(179)$7 $(119)$(291)
Dividends Declared [Table Text Block]
The following table shows the cash dividends declared per share on our Class A and Class B common stock during the six months ended October 31, 2024:
Declaration DateRecord DatePayable DateAmount per Share
May 23, 2024June 7, 2024July 1, 2024$0.2178
July 25, 2024September 3, 2024October 1, 2024$0.2178
v3.24.3
Net Sales (Tables)
 6 Months Ended
Oct. 31, 2024
Net Sales [Abstract]  
Disaggregation of Revenue [Table Text Block]
The following table shows our net sales by geography:
Three Months EndedSix Months Ended
October 31,October 31,
(Dollars in millions)2023202420232024
United States
$531 $489 $973 $908 
Developed International1
291 289 600 569 
Emerging2
221 242 442 427 
Travel Retail3
44 45 90 86 
Non-branded and bulk4
20 30 40 56 
Total$1,107 $1,095 $2,145 $2,046 
1Represents net sales of branded products to “advanced economies” as defined by the International Monetary Fund (IMF), excluding the United States. Our top developed international markets are Germany, Australia, the United Kingdom, France, Canada, and Spain.
2Represents net sales of branded products to “emerging and developing economies” as defined by the IMF. Our top emerging markets are Mexico, Poland, and Brazil.
3Represents net sales of branded products to global duty-free customers, other travel retail customers, and the U.S. military, regardless of customer location.
4Includes net sales of used barrels, contract bottling services, and non-branded bulk whiskey, regardless of customer location.

The following table shows our net sales by product category:
Three Months EndedSix Months Ended
October 31,October 31,
(Dollars in millions)2023202420232024
Whiskey1
$739 $769 $1,436 $1,428 
Ready-to-Drink2
132 133 270 254 
Tequila3
81 72 162 134 
Non-branded and bulk4
20 30 40 56 
Rest of portfolio5
135 91 237 174 
Total$1,107 $1,095 $2,145 $2,046 
1Includes all whiskey spirits and whiskey-based flavored liqueurs. The brands included in this category are the Jack Daniel's family of brands (excluding the “ready-to-drink” products outlined below), the Woodford Reserve family of brands, the Old Forester family of brands, The GlenDronach, Benriach, Glenglassaugh, Slane Irish Whiskey, and Coopers’ Craft.
2Includes the Jack Daniel’s ready-to-drink (RTD) and ready-to-pour (RTP) products, New Mix, and other RTD/RTP products.
3Includes el Jimador, the Herradura family of brands, and other tequilas.
4Includes net sales of used barrels, contract bottling services, and non-branded bulk whiskey.
5Includes Sonoma-Cutrer (which was divested on April 30, 2024), Korbel California Champagnes, Diplomático, Gin Mare, Chambord, Finlandia Vodka (which was divested on November 1, 2023), Fords Gin, and Korbel Brandy.
v3.24.3
Pension and Other Postretirement Benefits (Tables)
 6 Months Ended
Oct. 31, 2024
Retirement Benefits [Abstract]  
Schedule of Defined Benefit Plans Disclosures [Table Text Block]
The following table shows the components of the net cost recognized for our U.S. pension plans. Similar information for other defined benefit plans is not presented due to immateriality.
Three Months EndedSix Months Ended
October 31,October 31,
(Dollars in millions)2023202420232024
Service cost$5 $4 $9 $8 
Interest cost8 9 17 18 
Expected return on plan assets(10)(10)(19)(19)
Amortization of net actuarial loss2 1 3 1 
Net cost$5 $4 $10 $8 
v3.24.3
Derivative Financial Instruments and Hedging Activities (Tables)
 6 Months Ended
Oct. 31, 2024
Derivative Instruments and Hedging Activities Disclosure [Abstract]  
Derivative Instruments, Gain (Loss) [Table Text Block]
The following table presents the pre-tax impact that changes in the fair value of our derivative instruments and non-derivative hedging instruments had on AOCI and earnings:
Three Months Ended
October 31,
(Dollars in millions)Classification20232024
Derivative Instruments
Currency derivatives designated as cash flow hedges:   
Net gain (loss) recognized in AOCIn/a$21 $(2)
Net gain (loss) reclassified from AOCI into earningsSales5 (1)
Currency derivatives not designated as hedging instruments:   
Net gain (loss) recognized in earningsSales$4 $1 
Net gain (loss) recognized in earningsOther income (expense), net(1)(2)
Non-Derivative Hedging Instruments
Foreign currency-denominated debt designated as net investment hedge:
Net gain (loss) recognized in AOCIn/a$26 $(6)
Total amounts presented in the accompanying condensed consolidated statements of operations for line items affected by the net gains (losses) shown above:
Sales$1,405 $1,376 
Other income (expense), net— 8 
Six Months Ended
October 31,
(Dollars in millions)Classification20232024
Derivative Instruments
Currency derivatives designated as cash flow hedges:   
Net gain (loss) recognized in AOCIn/a$17 $(1)
Net gain (loss) reclassified from AOCI into earningsSales8 3 
Currency derivatives not designated as hedging instruments:   
Net gain (loss) recognized in earningsSales$2 $— 
Net gain (loss) recognized in earningsOther income (expense), net6 (6)
Non-Derivative Hedging Instruments
Foreign currency-denominated debt designated as net investment hedge:
Net gain (loss) recognized in AOCIn/a$17 $(15)
Total amounts presented in the accompanying condensed consolidated statements of operations for line items affected by the net gains (losses) shown above:
Sales$2,731 $2,587 
Other income (expense), net7 38 
Schedule of Derivative Instruments in Statement of Financial Position, Fair Value [Table Text Block]
The following table presents the fair values of our derivative instruments:
April 30, 2024October 31, 2024
(Dollars in millions)
Classification
Derivative Assets
Derivative Liabilities
Derivative Assets
Derivative Liabilities
Designated as cash flow hedges:
Currency derivativesOther current assets$11 $(2)$8 $(3)
Currency derivativesOther assets1 (1)1 — 
Not designated as hedges:
Currency derivativesAccrued expenses— (1)— (1)
Offsetting Derivative Assets and Liabilities [Table Text Block]
The following table summarizes the gross and net amounts of our derivative contracts:
(Dollars in millions)
Gross Amounts of Recognized Assets (Liabilities)
Gross Amounts Offset in Balance Sheet
Net Amounts Presented in Balance Sheet
Gross Amounts Not Offset in Balance Sheet
Net Amounts
April 30, 2024
Derivative assets$12 $(3)$9 $— $9 
Derivative liabilities(4)3 (1)— (1)
October 31, 2024
Derivative assets9 (3)6 — 6 
Derivative liabilities(4)3 (1)— (1)
v3.24.3
Fair Value Measurements (Tables)
 6 Months Ended
Oct. 31, 2024
Fair Value Disclosures [Abstract]  
Schedule of Fair Value, Assets and Liabilities Measured on Recurring Basis [Table Text Block]
The following table summarizes the assets and liabilities measured or disclosed at fair value on a recurring basis:
April 30, 2024October 31, 2024
 CarryingFairCarryingFair
(Dollars in millions)AmountValueAmountValue
Assets  
Cash and cash equivalents$446 $446 $416 $416 
Currency derivatives, net9 9 6 6 
Liabilities  
Currency derivatives, net1 1 1 1 
Contingent consideration
69 69 75 75 
Short-term borrowings428 428 512 512 
Long-term debt (including current portion)
2,672 2,468 2,691 2,547 
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Table Text Block]
The following table shows the changes in our contingent consideration liability during the six months ended October 31, 2024:
(Dollars in millions)
Balance at April 30, 2024$69 
Change in fair value1
5 
Foreign currency translation adjustment1 
Balance at October 31, 2024$75 
1Classified as “other expense (income), net” in the accompanying condensed consolidated statement of operations.
v3.24.3
Other Comprehensive Income (Tables)
 6 Months Ended
Oct. 31, 2024
Statement of Comprehensive Income [Abstract]  
Comprehensive Income (Loss) [Table Text Block]
The following table shows the components of net other comprehensive income (loss):
Three Months EndedThree Months Ended
October 31, 2023October 31, 2024
(Dollars in millions)Pre-TaxTaxNetPre-TaxTaxNet
Currency translation adjustments:
Net gain (loss) on currency translation$(98)$(6)$(104)$(27)$1 $(26)
Reclassification to earnings— — — — — — 
Other comprehensive income (loss), net(98)(6)(104)(27)1 (26)
Cash flow hedge adjustments:
Net gain (loss) on hedging instruments21 (5)16 (2)— (2)
Reclassification to earnings1
(5)1 (4)1 — 1 
Other comprehensive income (loss), net16 (4)12 (1)— (1)
Postretirement benefits adjustments:
Net actuarial gain (loss) and prior service cost— — — — — — 
Reclassification to earnings2
2 (1)1 — — — 
Other comprehensive income (loss), net2 (1)1 — — — 
Total other comprehensive income (loss), net$(80)$(11)$(91)$(28)$1 $(27)
Six Months EndedSix Months Ended
October 31, 2023October 31, 2024
(Dollars in millions)Pre-TaxTaxNetPre-TaxTaxNet
Currency translation adjustments:
Net gain (loss) on currency translation$(61)$(4)$(65)$(71)$3 $(68)
Reclassification to earnings— — — — — — 
Other comprehensive income (loss), net(61)(4)(65)(71)3 (68)
Cash flow hedge adjustments:
Net gain (loss) on hedging instruments17 (4)13 (1)— (1)
Reclassification to earnings1
(8)2 (6)(3)1 (2)
Other comprehensive income (loss), net9 (2)7 (4)1 (3)
Postretirement benefits adjustments:
Net actuarial gain (loss) and prior service cost— — — — — — 
Reclassification to earnings2
4 (1)3 1 — 1 
Other comprehensive income (loss), net4 (1)3 1 — 1 
Total other comprehensive income (loss), net$(48)$(7)$(55)$(74)$4 $(70)
1Pre-tax amount for each period is classified as sales in the accompanying condensed consolidated statements of operations.
2Pre-tax amount for each period is classified as non-operating postretirement expense in the accompanying condensed consolidated statements of operations.
v3.24.3
Earnings Per Share (Details) - USD ($)
$ / shares in Units, shares in Thousands, $ in Millions
 3 Months Ended 6 Months Ended
Oct. 31, 2024
Oct. 31, 2023
Oct. 31, 2024
Oct. 31, 2023
Earnings Per Share [Abstract]        
Net income available to common stockholders, basic $ 258 $ 242 $ 453 $ 473
Net income available to common stockholders, diluted $ 258 $ 242 $ 453 $ 473
Share data (in thousands):        
Basic average common shares outstanding 472,660 479,200 472,647 479,262
Dilutive effect of stock-based awards 397 915 350 972
Diluted average common shares outstanding 473,057 480,115 472,997 480,234
Basic earnings per share (dollars per share) $ 0.55 $ 0.50 $ 0.96 $ 0.99
Diluted earnings per share (dollars per share) $ 0.55 $ 0.50 $ 0.96 $ 0.98
v3.24.3
Earnings Per Share (Details Textual) - shares
shares in Thousands
 3 Months Ended 6 Months Ended
Oct. 31, 2024
Oct. 31, 2023
Oct. 31, 2024
Oct. 31, 2023
Earnings Per Share (Textual) [Abstract]        
Common stock-based awards excluded from the calculation of diluted earnings per share 3,018 1,688 2,800 1,486
v3.24.3
Inventories (Details) - USD ($)
$ in Millions
Oct. 31, 2024
Apr. 30, 2024
Inventories (Textual) [Abstract]    
Excess of current costs over stated LIFO value $ 552 $ 512
v3.24.3
Goodwill and Other Intangible Assets (Details)
$ in Millions
 6 Months Ended
Oct. 31, 2024
USD ($)
Goodwill [Roll Forward]  
Balance at April 30, 2024 $ 1,455
Foreign currency translation adjustment 13
Balance at October 31, 2024 1,468
Indefinite-lived Intangible Assets [Roll Forward]  
Balance at April 30, 2024 990
Foreign currency translation adjustment 10
Balance at October 31, 2024 $ 1,000
v3.24.3
Equity Method Investments (Details) - USD ($)
$ in Millions
 3 Months Ended 6 Months Ended 12 Months Ended
Oct. 31, 2024
Oct. 31, 2023
Oct. 31, 2024
Oct. 31, 2023
Apr. 30, 2025
Apr. 30, 2024
Schedule of Equity Method Investments [Line Items]            
Equity method investments $ 272   $ 272     $ 270
Related Party Transaction, Purchases from Related Party 2   24      
Income (Loss) from Equity Method Investments $ 2 $ 0 $ 2 $ 0    
Duckhorn            
Schedule of Equity Method Investments [Line Items]            
Equity Method Investment, Ownership Percentage 21.40%   21.40%     21.40%
Equity method investments $ 269   $ 269     $ 267
Equity Method Investment, Quoted Market Value $ 346   346      
Income (Loss) from Equity Method Investments     $ 2      
Duckhorn | Forecast [Member]            
Schedule of Equity Method Investments [Line Items]            
Proceeds from Sale of Equity Method Investments         $ 350  
v3.24.3
Debt (Details)
€ in Millions, £ in Millions, $ in Millions
 6 Months Ended
Oct. 31, 2024
USD ($)
Oct. 31, 2024
EUR (€)
Oct. 31, 2024
GBP (£)
Apr. 30, 2024
USD ($)
Apr. 30, 2024
EUR (€)
Apr. 30, 2024
GBP (£)
Debt Instrument [Line Items]            
Long-term debt, including current portion $ 2,691     $ 2,672    
Current portion of long-term debt 300     300    
Long-term debt 2,391     2,372    
3.50% senior notes, due April 15, 2025 [Member]            
Debt Instrument [Line Items]            
Debt Instrument, Face Amount $ 300     $ 300    
Debt Instrument, Maturity Date Apr. 15, 2025          
Debt Instrument, Interest Rate, Stated Percentage 3.50% 3.50% 3.50% 3.50% 3.50% 3.50%
Long-term debt, including current portion $ 300     $ 300    
1.20% notes, due July 7, 2026 [Member]            
Debt Instrument [Line Items]            
Debt Instrument, Face Amount | €   € 300     € 300  
Debt Instrument, Maturity Date Jul. 07, 2026          
Debt Instrument, Interest Rate, Stated Percentage 1.20% 1.20% 1.20% 1.20% 1.20% 1.20%
Long-term debt, including current portion $ 325     $ 321    
2.60% notes, due July 7, 2028 [Member]            
Debt Instrument [Line Items]            
Debt Instrument, Face Amount | £     £ 300     £ 300
Debt Instrument, Maturity Date Jul. 07, 2028          
Debt Instrument, Interest Rate, Stated Percentage 2.60% 2.60% 2.60% 2.60% 2.60% 2.60%
Long-term debt, including current portion $ 388     $ 375    
4.75% senior notes, due April 15, 2033 {Member}            
Debt Instrument [Line Items]            
Debt Instrument, Face Amount $ 650     $ 650    
Debt Instrument, Maturity Date Apr. 15, 2033          
Debt Instrument, Interest Rate, Stated Percentage 4.75% 4.75% 4.75% 4.75% 4.75% 4.75%
Long-term debt, including current portion $ 644     $ 643    
4.00% senior notes, due April 15, 2038 [Member]            
Debt Instrument [Line Items]            
Debt Instrument, Face Amount $ 300     $ 300    
Debt Instrument, Maturity Date Apr. 15, 2038          
Debt Instrument, Interest Rate, Stated Percentage 4.00% 4.00% 4.00% 4.00% 4.00% 4.00%
Long-term debt, including current portion $ 296     $ 295    
3.75% notes, due January 15, 2043 [Member]            
Debt Instrument [Line Items]            
Debt Instrument, Face Amount $ 250     $ 250    
Debt Instrument, Maturity Date Jan. 15, 2043          
Debt Instrument, Interest Rate, Stated Percentage 3.75% 3.75% 3.75% 3.75% 3.75% 3.75%
Long-term debt, including current portion $ 248     $ 248    
4.50% notes, due July 15, 2045 [Member]            
Debt Instrument [Line Items]            
Debt Instrument, Face Amount $ 500     $ 500    
Debt Instrument, Maturity Date Jul. 15, 2045          
Debt Instrument, Interest Rate, Stated Percentage 4.50% 4.50% 4.50% 4.50% 4.50% 4.50%
Long-term debt, including current portion $ 490     $ 490    
v3.24.3
Debt Short-term Borrowings (Details) - Commercial Paper - USD ($)
$ in Millions
 6 Months Ended 12 Months Ended
Oct. 31, 2024
Apr. 30, 2024
Short-Term Debt [Line Items]    
Commercial paper (par amount) $ 514 $ 429
Average interest rate 4.93% 5.49%
Average remaining days to maturity 24 days 12 days
v3.24.3
Stockholders' Equity (Details) - USD ($)
$ in Millions
 3 Months Ended 6 Months Ended
Oct. 31, 2024
Jul. 31, 2024
Oct. 31, 2023
Jul. 31, 2023
Oct. 31, 2024
Oct. 31, 2023
Beginning balance $ 3,465 $ 3,517 $ 3,338 $ 3,268 $ 3,517 $ 3,268
Net income 258 195 242 231 453 473
Net other comprehensive income (loss) (27) (43) (91) 36 (70) (55)
Declaration of cash dividends   (206)   (197)    
Acquisition of treasury stock     (42)      
Stock-based compensation expense 9 4 7 4    
Stock issued under compensation plans   3   3    
Loss on issuance of treasury stock issued under compensation plans   (5)   (7)    
Ending balance 3,705 3,465 3,454 3,338 3,705 3,454
Additional Paid-in Capital [Member]            
Beginning balance 12 13 1 1 13 1
Stock-based compensation expense 9 4 7 4    
Loss on issuance of treasury stock issued under compensation plans   (5)   (4)    
Ending balance 21 12 8 1 21 8
Retained Earnings [Member]            
Beginning balance 4,250 4,261 3,674 3,643 4,261 3,643
Net income 258 195 242 231    
Declaration of cash dividends   (206)   (197)    
Loss on issuance of treasury stock issued under compensation plans     (3)    
Ending balance 4,508 4,250 3,916 3,674 4,508 3,916
AOCI Attributable to Parent [Member]            
Beginning balance (264) (221) (199) (235) (221) (235)
Net other comprehensive income (loss) (27) (43) (91) 36    
Ending balance (291) (264) (290) (199) (291) (290)
Treasury Stock, Common [Member]            
Beginning balance (605) (608) (210) (213) (608) (213)
Acquisition of treasury stock     (42)      
Stock issued under compensation plans   3   3    
Ending balance (605) (605) (252) (210) (605) (252)
Common stock, Class A, voting [Member] | Common Stock [Member]            
Beginning balance 25 25 25 25 25 25
Ending balance 25 25 25 25 25 25
Common stock, Class B, nonvoting [Member] | Common Stock [Member]            
Beginning balance 47 47 47 47 47 47
Ending balance $ 47 $ 47 $ 47 $ 47 $ 47 $ 47
v3.24.3
Stockholders' Equity Accumulated Other Comprehensive Income (Details) - USD ($)
$ in Millions
 3 Months Ended 6 Months Ended
Oct. 31, 2024
Jul. 31, 2024
Oct. 31, 2023
Jul. 31, 2023
Oct. 31, 2024
Oct. 31, 2023
Accumulated Other Comprehensive Income (Loss) [Line Items]            
Beginning balance   $ (221)     $ (221)  
Net other comprehensive income (loss) $ (27) (43) $ (91) $ 36 (70) $ (55)
Ending balance (291)       (291)  
Accumulated Foreign Currency Adjustment Attributable to Parent [Member]            
Accumulated Other Comprehensive Income (Loss) [Line Items]            
Beginning balance   (111)     (111)  
Net other comprehensive income (loss) (26)   (104)   (68) (65)
Ending balance (179)       (179)  
Accumulated Net Gain (Loss) from Cash Flow Hedges Attributable to Parent [Member]            
Accumulated Other Comprehensive Income (Loss) [Line Items]            
Beginning balance   10     10  
Net other comprehensive income (loss) (1)   12   (3) 7
Ending balance 7       7  
Accumulated Defined Benefit Plans Adjustment Attributable to Parent [Member]            
Accumulated Other Comprehensive Income (Loss) [Line Items]            
Beginning balance   (120)     (120)  
Net other comprehensive income (loss) 0   1   1 $ 3
Ending balance (119)       $ (119)  
AOCI Attributable to Parent [Member]            
Accumulated Other Comprehensive Income (Loss) [Line Items]            
Net other comprehensive income (loss) $ (27) $ (43) $ (91) $ 36    
v3.24.3
Stockholders' Equity Dividends (Details) - $ / shares
 6 Months Ended
Nov. 21, 2024
Oct. 31, 2024
July 2024 dividend payment    
Class of Stock [Line Items]    
Dividends Payable, Date Declared   May 23, 2024
Dividends Payable, Date of Record   Jun. 07, 2024
Dividends Payable, Date to be Paid   Jul. 01, 2024
Common Stock, Dividends, Per Share, Declared   $ 0.2178
October 2024 dividend payment    
Class of Stock [Line Items]    
Dividends Payable, Date Declared   Jul. 25, 2024
Dividends Payable, Date of Record   Sep. 03, 2024
Dividends Payable, Date to be Paid   Oct. 01, 2024
Common Stock, Dividends, Per Share, Declared   $ 0.2178
Subsequent Event [Member] | January 2025 dividend payment    
Class of Stock [Line Items]    
Dividends Payable, Date Declared Nov. 21, 2024  
Dividends Payable, Date of Record Dec. 06, 2024  
Dividends Payable, Date to be Paid Jan. 02, 2025  
Common Stock, Dividends, Per Share, Declared $ 0.2265  
v3.24.3
Net Sales by Geography (Details) - USD ($)
$ in Millions
 3 Months Ended 6 Months Ended
Oct. 31, 2024
Oct. 31, 2023
Oct. 31, 2024
Oct. 31, 2023
Disaggregation of Revenue [Line Items]        
Net sales $ 1,095 $ 1,107 $ 2,046 $ 2,145
United States [Member]        
Disaggregation of Revenue [Line Items]        
Net sales 489 531 908 973
Developed International [Member]        
Disaggregation of Revenue [Line Items]        
Net sales [1] 289 291 569 600
Emerging [Member]        
Disaggregation of Revenue [Line Items]        
Net sales [2] 242 221 427 442
Travel Retail [Member]        
Disaggregation of Revenue [Line Items]        
Net sales [3] 45 44 86 90
Non-branded and bulk [Member]        
Disaggregation of Revenue [Line Items]        
Net sales [4] $ 30 $ 20 $ 56 $ 40
[1] Represents net sales of branded products to “advanced economies” as defined by the International Monetary Fund (IMF), excluding the United States. Our top developed international markets are Germany, Australia, the United Kingdom, France, Canada, and Spain.
[2] Represents net sales of branded products to “emerging and developing economies” as defined by the IMF. Our top emerging markets are Mexico, Poland, and Brazil.
[3] Represents net sales of branded products to global duty-free customers, other travel retail customers, and the U.S. military, regardless of customer location.
[4] Includes net sales of used barrels, contract bottling services, and non-branded bulk whiskey, regardless of customer location.
v3.24.3
Net Sales by Product Category (Details) - USD ($)
$ in Millions
 3 Months Ended 6 Months Ended
Oct. 31, 2024
Oct. 31, 2023
Oct. 31, 2024
Oct. 31, 2023
Disaggregation of Revenue [Line Items]        
Net sales $ 1,095 $ 1,107 $ 2,046 $ 2,145
Whiskey [Member]        
Disaggregation of Revenue [Line Items]        
Net sales [1] 769 739 1,428 1,436
Ready-to-Drink        
Disaggregation of Revenue [Line Items]        
Net sales [2] 133 132 254 270
Tequila [Member]        
Disaggregation of Revenue [Line Items]        
Net sales [3] 72 81 134 162
Non-branded and bulk [Member]        
Disaggregation of Revenue [Line Items]        
Net sales [4] 30 20 56 40
Rest of portfolio [Member]        
Disaggregation of Revenue [Line Items]        
Net sales [5] $ 91 $ 135 $ 174 $ 237
[1] Includes all whiskey spirits and whiskey-based flavored liqueurs. The brands included in this category are the Jack Daniel's family of brands (excluding the “ready-to-drink” products outlined below), the Woodford Reserve family of brands, the Old Forester family of brands, The GlenDronach, Benriach, Glenglassaugh, Slane Irish Whiskey, and Coopers’ Craft.
[2] Includes the Jack Daniel’s ready-to-drink (RTD) and ready-to-pour (RTP) products, New Mix, and other RTD/RTP products.
[3] Includes el Jimador, the Herradura family of brands, and other tequilas.
[4] Includes net sales of used barrels, contract bottling services, and non-branded bulk whiskey.
[5] Includes Sonoma-Cutrer (which was divested on April 30, 2024), Korbel California Champagnes, Diplomático, Gin Mare, Chambord, Finlandia Vodka (which was divested on November 1, 2023), Fords Gin, and Korbel Brandy.
v3.24.3
Pension and Other Postretirement Benefits (Details) - Pension Benefits [Member] - USD ($)
$ in Millions
 3 Months Ended 6 Months Ended
Oct. 31, 2024
Oct. 31, 2023
Oct. 31, 2024
Oct. 31, 2023
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items]        
Defined Benefit Plan, Sponsor Location [Extensible List]        
Service cost $ 4 $ 5 $ 8 $ 9
Interest cost 9 8 18 17
Expected return on plan assets (10) (10) (19) (19)
Amortization of net actuarial loss (gain) 1 2 1 3
Net cost $ 4 $ 5 $ 8 $ 10
v3.24.3
Income Taxes (Details)
 6 Months Ended
Oct. 31, 2024
Oct. 31, 2023
Expected Tax Rate on Ordinary Income 21.80%  
Effective Income Tax Rate Reconciliation, at Federal Statutory Income Tax Rate, Percent 21.00%  
Effective Income Tax Rate Reconciliation, Percent 20.10% 22.40%
v3.24.3
Derivative Financial Instruments and Hedging Activities (Details) - USD ($)
$ in Millions
 3 Months Ended 6 Months Ended
Oct. 31, 2024
Oct. 31, 2023
Oct. 31, 2024
Oct. 31, 2023
Total amounts presented in the accompanying consolidated statements of operations for line items affected by the net gains (losses) shown above: [Abstract]        
Sales $ 1,376 $ 1,405 $ 2,587 $ 2,731
Other income (expense), net 8 0 38 7
Foreign Currency Denominated Debt [Member]        
Foreign currency-denominated debt designated as net investment hedge: [Abstract]        
Net gain (loss) recognized in AOCI (6) 26 (15) 17
Currency derivatives [Member]        
Currency derivatives designated as cash flow hedges: [Abstract]        
Net gain (loss) recognized in AOCI (2) 21 (1) 17
Currency derivatives [Member] | Sales [Member]        
Currency derivatives designated as cash flow hedges: [Abstract]        
Net gain (loss) reclassified from AOCI into earnings (1) 5 3 8
Currency derivatives not designated as hedging instruments: [Abstract]        
Net gain (loss) recognized in earnings 1 4 0 2
Currency derivatives [Member] | Other Income [Member]        
Currency derivatives not designated as hedging instruments: [Abstract]        
Net gain (loss) recognized in earnings $ (2) $ (1) $ (6) $ 6
v3.24.3
Derivative Financial Instruments and Hedging Activities (Details 1) - USD ($)
$ in Millions
Oct. 31, 2024
Apr. 30, 2024
Fair values of derivative instruments    
Derivative Asset, Fair Value, Gross Asset $ 9 $ 12
Derivative Liability, Fair Value, Gross Liability 4 4
Currency derivatives [Member] | Designated as Hedging Instrument [Member] | Cash Flow Hedging [Member] | Other Current Assets [Member]    
Fair values of derivative instruments    
Derivative Asset, Fair Value, Gross Asset 8 11
Derivative Liability, Fair Value, Gross Liability (3) (2)
Currency derivatives [Member] | Designated as Hedging Instrument [Member] | Cash Flow Hedging [Member] | Other Assets [Member]    
Fair values of derivative instruments    
Derivative Asset, Fair Value, Gross Asset 1 1
Derivative Liability, Fair Value, Gross Liability 0 (1)
Currency derivatives [Member] | Not designated as hedges [Member] | Accrued Expenses [Member]    
Fair values of derivative instruments    
Derivative Asset, Fair Value, Gross Asset 0 0
Derivative Liability, Fair Value, Gross Liability $ (1) $ (1)
v3.24.3
Derivative Financial Instruments and Hedging Activities (Details Textual) - USD ($)
$ in Millions
 3 Months Ended 6 Months Ended
Jul. 31, 2024
Oct. 31, 2024
Apr. 30, 2024
Derivative Financial Instruments (Textual) [Abstract]      
Maximum term of outstanding derivative contracts 24 months 24 months  
Foreign Currency Cash Flow Hedge Gain (Loss) to be Reclassified During Next 12 Months   $ 4  
Derivative, Net Liability Position, Aggregate Fair Value   1 $ 1
Designated as Hedging Instrument [Member] | Net Investment Hedging [Member]      
Derivative Instruments, Gain (Loss) [Line Items]      
Debt Instrument, Face Amount   512 497
Foreign Exchange Contract [Member]      
Derivative Instruments, Gain (Loss) [Line Items]      
Derivative, Notional Amount   $ 515 $ 566
v3.24.3
Offsetting Derivative Assets and Liabilities (Details) - USD ($)
$ in Millions
Oct. 31, 2024
Apr. 30, 2024
Offsetting Assets and Liabilities [Line Items]    
Gross Amount of Derivative Assets $ 9 $ 12
Gross Amount of Derivative Liabilities Offset Against Derivative Assets in Balance Sheet (3) (3)
Net Amount of Derivative Assets Presented in Balance Sheet 6 9
Gross Amount of Derivative Liabilities Not Offset Against Derivative Assets in Balance Sheet 0 0
Net Amount of Derivative Assets 6 9
Gross Amount of Derivative Liabilities (4) (4)
Gross Amount of Derivative Assets Offset Against Derivative Liabilities in Balance Sheet 3 3
Net Amount of Derivative Liabilities Presented in Balance Sheet 1 1
Gross Amount of Derivative Assets Not Offset Against Derivative Liabilities in Balance Sheet 0 0
Net Amount of Derivative Liabilities $ 1 $ 1
v3.24.3
Fair Value Measurements (Details) - USD ($)
$ in Millions
Oct. 31, 2024
Apr. 30, 2024
Oct. 31, 2023
Assets:      
Cash and cash equivalents $ 416 $ 446 $ 373
Cash and cash equivalents, Fair Value 416 446  
Liabilities:      
Contingent consideration, Carrying Amount 75 69  
Short-term borrowings, Carrying Amount 512 428  
Short-term borrowings, Fair Value 512 428  
Long-term debt (including current portion), Carrying Amount 2,691 2,672  
Fair Value, Inputs, Level 2 [Member]      
Assets:      
Currency derivatives, net, Fair Value 6 9  
Liabilities:      
Currency derivatives, net, Fair Value 1 1  
Long-term debt (including current portion), Fair Value 2,547 2,468  
Fair Value, Inputs, Level 3 [Member]      
Liabilities:      
Contingent consideration, Fair Value 75 69  
Foreign Exchange Contract [Member]      
Assets:      
Currency derivatives, net, Carrying Amount 6 9  
Liabilities:      
Currency derivatives, net, Carrying Amount $ 1 $ 1  
v3.24.3
Rollforward of Contingent Consideration (Details)
$ in Millions
 6 Months Ended
Oct. 31, 2024
USD ($)
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward]  
Balance at April 30, 2024 $ 69
Change in fair value 5 [1]
Foreign currency translation adjustment 1
Balance at October 31, 2024 $ 75
[1] Classified as “other expense (income), net” in the accompanying condensed consolidated statement of operations.
v3.24.3
Other Comprehensive Income (Details) - USD ($)
$ in Millions
 3 Months Ended 6 Months Ended
Oct. 31, 2024
Jul. 31, 2024
Oct. 31, 2023
Jul. 31, 2023
Oct. 31, 2024
Oct. 31, 2023
Before Tax:            
Net other comprehensive income (loss) $ (28)   $ (80)   $ (74) $ (48)
Tax Effect:            
Net other comprehensive income (loss) 1   (11)   4 (7)
Net of Tax:            
Net other comprehensive income (loss) (27) $ (43) (91) $ 36 (70) (55)
Accumulated Foreign Currency Adjustment Attributable to Parent [Member]            
Before Tax:            
Net gain (loss) (27)   (98)   (71) (61)
Reclassification to earnings 0   0   0 0
Net other comprehensive income (loss) (27)   (98)   (71) (61)
Tax Effect:            
Net gain (loss) 1   (6)   3 (4)
Reclassification to earnings 0   0   0 0
Net other comprehensive income (loss) 1   (6)   3 (4)
Net of Tax:            
Net gain (loss) (26)   (104)   (68) (65)
Reclassification to earnings 0   0   0 0
Net other comprehensive income (loss) (26)   (104)   (68) (65)
Accumulated Net Gain (Loss) from Cash Flow Hedges Attributable to Parent [Member]            
Before Tax:            
Net gain (loss) (2)   21   (1) 17
Reclassification to earnings [1] 1   (5)   (3) (8)
Net other comprehensive income (loss) (1)   16   (4) 9
Tax Effect:            
Net gain (loss) 0   (5)   0 (4)
Reclassification to earnings [1] 0   1   1 2
Net other comprehensive income (loss) 0   (4)   1 (2)
Net of Tax:            
Net gain (loss) (2)   16   (1) 13
Reclassification to earnings [1] 1   (4)   (2) (6)
Net other comprehensive income (loss) (1)   12   (3) 7
Accumulated Defined Benefit Plans Adjustment Attributable to Parent [Member]            
Before Tax:            
Net gain (loss) 0   0   0 0
Reclassification to earnings [2] 0   2   1 4
Net other comprehensive income (loss) 0   2   1 4
Tax Effect:            
Net gain (loss) 0   0   0 0
Reclassification to earnings [2] 0   (1)   0 (1)
Net other comprehensive income (loss) 0   (1)   0 (1)
Net of Tax:            
Net gain (loss) 0   0   0 0
Reclassification to earnings [2] 0   1   1 3
Net other comprehensive income (loss) $ 0   $ 1   $ 1 $ 3
[1] Pre-tax amount for each period is classified as sales in the accompanying condensed consolidated statements of operations.
[2] Pre-tax amount for each period is classified as non-operating postretirement expense in the accompanying condensed consolidated statements of operations.
Brown Forman (NYSE:BF.B)
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