Financial Analysis

Debt and Credit Facilities Our long-term debt (net of unamortized discounts and issuance costs) consisted of: April 30, 2025 2026 1.20% senior notes, 300 principal amount, due July 7, 2026 $ 342 $ 351 2.60% senior notes, 300 principal amount, due July 7, 2028 401 404 4.75% senior notes, $650 principal amount, due April 15, 2033 644 645 4.00% senior notes, $300 principal amount, due April 15, 2038 296 296 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 Total long-term debt (including current portion) 2,421 2,434 Less: current portion 351 Total long-term debt $ 2,421 $ 2,083 Debt payments required over the next five fiscal years consist of $351 in 2027, $0 in 2028, $405 in 2029, $0 in 2030, $0 in 2031, and $1,700 after 2031. The senior notes contain terms, events of default, and covenants customary of these types of unsecured securities, including limitations on the amount of secured debt we can issue. Details of our short-term borrowings at April 30, 2025 and 2026, are presented below: April 30, 2025 2026 Commercial paper (par amount) $313 $68 Average interest rate 4.64% 3.96% Average remaining days to maturity 12 7 We have a committed revolving credit agreement with various U.S. and international banks for $900 that expires in May 2029. There were no borrowings outstanding under this facility at April 30, 2025 and 2026 …

DebtDisclosureTextBlock · excerpt; the full note is in the filing

The following table shows our net sales by geography: Year Ended April 30, 2024 2025 2026 United States $ 1,889 $ 1,765 $ 1,649 Developed International 1 1,154 1,090 1,095 Emerging 2 869 852 974 Travel Retail 3 179 166 177 Non-branded and bulk 4 87 102 33 $ 4,178 $ 3,975 $ 3,928 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, 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, Brazil, and Turkiye. 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. The following table shows our net sales by product category: Year Ended April 30, 2024 2025 2026 Whiskey 1 $ 2,832 $ 2,828 $ 2,901 Ready-to-Drink 2 520 491 542 Tequila 3 306 262 251 Rest of portfolio 4 433 292 201 Non-branded and bulk 5 87 102 33 $ 4,178 $ 3,975 $ 3,928 1 Includes all whiskey spirits and whiskey-based flavored liqueurs. The brands included in this category are the Jack Daniels family of brands (excluding the Ready-to-Drink products outlined below), the Woodford Reserve family of brands, th …

DisaggregationOfRevenueTableTextBlock · excerpt; the full note is in the filing

Stock-Based Compensation The Brown-Forman 2022 Omnibus Compensation Plan (Plan) is our incentive compensation plan, designed to reward participants (including eligible executive officers, other employees, and non-employee directors) for company performance. Under the Plan, we can grant stock-based incentive awards for up to 12,412,433 shares of common stock to eligible participants until July 28, 2032. As of April 30, 2026, awards for approximately 9,290,000 shares remain available for issuance under the Plan. We try to limit the source of shares delivered to participants under the Plan to treasury shares that we purchase from time to time on the open market (in connection with a publicly announced share repurchase program), in private transactions, or otherwise. Awards granted under the Plan include stock-settled stock appreciation rights (SSARs), performance-based restricted stock units (PBRSUs), time-based restricted stock units (RSUs), and deferred stock units (DSUs). SSARs. We grant SSARs at an exercise price equal to the closing market price of the underlying stock on the grant date. SSARs become exercisable after three years from the first day of the fiscal year of grant and generally are exercisable for seven years after that date. The following table presents information about SSARs outstanding as of April 30, 2026, and for the year then ended. Number of SSARs (in thousands) Weighted- Average Exercise Price per SSAR Weighted- Average Remaining Contractual Term (years …

DisclosureOfCompensationRelatedCostsShareBasedPaymentsTextBlock · excerpt; the full note is in the filing

air Value Measurements The following table summarizes the assets and liabilities measured or disclosed at fair value on a recurring basis: 2025 2026 April 30, Carrying Amount Fair Value Carrying Amount Fair Value Assets: Cash and cash equivalents $ 444 $ 444 $ 308 $ 308 Currency derivatives 2 2 1 1 Liabilities: Currency derivatives $ 12 $ 12 $ 14 $ 14 Contingent consideration 31 31 16 16 Short-term borrowings 312 312 68 68 Long-term debt (including current portion) 2,421 2,255 2,434 2,246 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 l …

FairValueDisclosuresTextBlock · excerpt; the full note is in the filing

Goodwill and Other Intangible Assets The following table shows the changes in goodwill (which include no accumulated impairment losses) over the past two years: Goodwill Balance as of April 30, 2024 $ 1,455 Foreign currency translation adjustment 50 Balance as of April 30, 2025 1,505 Foreign currency translation adjustment 17 Balance as of April 30, 2026 $ 1,522 The following table presents details of our other intangible assets as of April 30, 2025 and 2026, respectively: 2025 2026 April 30, Gross Carrying Amount Accumulated Amortization Net Carrying Amount Gross Carrying Amount Accumulated Amortization Net Carrying Amount Definite-lived intangible assets: Supply contract $ $ $ $ 88 $ (11) $ 77 Indefinite-lived intangible assets: Trademarks and brand names 981 981 866 866 Total other intangible assets $ 981 $ 981 $ 954 $ 943 Definite-lived intangible assets. During the first quarter of 2026, we recognized a definite-lived supply contract intangible asset of $88. This amount relates to a barrel supply agreement and was obtained as partial consideration for the sale of the Brown-Forman Cooperage facility and related assets on May 1, 2025 (refer to Note 6). We determined the estimated fair value of the supply contract using a discounted cash flow model. This method requires the use of assumptions, such as projected future market prices and discount rates (refer to Note 16). Amortization related to the supply contract used in the production of barrels will be capitalized into in …

GoodwillAndIntangibleAssetsDisclosureTextBlock · excerpt; the full note is in the filing

Income Taxes We incur income taxes on the earnings of our U.S. and foreign operations. The following table, based on the locations of the taxable entities from which sales were derived (rather than the location of customers), presents the U.S. and foreign components of our income before income taxes: Year Ended April 30, 2024 2025 2026 United States $ 917 $ 826 $ 682 Foreign 381 255 203 $ 1,298 $ 1,081 $ 885 The income shown above was determined according to GAAP. Because those standards sometimes differ from the tax rules used to calculate taxable income, there are differences between (a) the amount of taxable income and pre-tax financial income for a year and (b) the tax bases of assets or liabilities and their amounts as recorded in our financial statements. As a result, we recognize a current tax liability for the estimated income tax payable on the current tax return, deferred tax liabilities (tax on income that will be recognized on future tax returns), and deferred tax assets (tax from deductions that will be recognized on future tax returns) for the estimated effects of the differences mentioned above. Total income tax expense for a year includes the tax associated with the current tax return (current tax expense) and the change in the net deferred tax asset or liability (deferred tax expense). Our total income tax expense for each of the last three years was as follows: Year Ended April 30, 2024 2025 2026 Current: U.S. federal $ 150 $ 173 $ 125 Foreign 81 73 68 State …

IncomeTaxDisclosureTextBlock · excerpt; the full note is in the filing

Leases We enter into lease arrangements, which we use primarily for office space, vehicles, and land. Substantially all of our leases are operating leases. Our finance leases are not material. We record lease liabilities and right-of-use (ROU) assets on our balance sheet for leases with terms exceeding 12 months. We do not record lease liabilities or ROU assets for short-term leases. The amounts recorded for lease liabilities and ROU assets are based on the estimated present value, as of the lease commencement date, of the future payments to be made over the lease term. We calculate the present value using our incremental borrowing rate that corresponds to the term of the lease. We include the effect of an option to renew or terminate a lease in the lease term when it is reasonably certain that we will exercise the option. Some of our leases contain non-lease components (e.g., maintenance or other services) in addition to lease components. We have elected the practical expedient not to separate the non-lease components from the lease components. The following table shows information about our leases as of the end of the last two years: Balance Sheet Classification April 30, 2025 April 30, 2026 Right-of-use assets Other assets $ 101 $ 106 Lease liabilities: Current Accounts payable and accrued expenses $ 26 $ 31 Non-current Other liabilities 78 78 Total $ 104 $ 109 Weighted-average discount rate 4.5% 5.3% Weighted-average remaining term 4.8 years 4.4 years The following table …

LesseeOperatingLeasesTextBlock · excerpt; the full note is in the filing

Recently adopted accounting standard. In December 2023, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update (ASU) 2023-09, Income Taxes (Topic 740): Improvements to Income Tax Disclosures (ASU 2023-09), requiring additional annual disclosures about income taxes, primarily related to the rate reconciliation and information about income taxes paid. We adopted the new guidance for our annual period ended April 30, 2026 and applied the updated standard prospectively (refer to Note 13). Accounting standards not yet adopted. In November 2024, the FASB issued ASU 2024-03, Income StatementReporting Comprehensive IncomeExpense Disaggregation Disclosures (Subtopic 220-40) , requiring disaggregation, in the notes to the financial statements, of expense line items in the income statement that include certain categories of expenses. We are required to adopt the updated standard for annual disclosures for the period ending April 30, 2028, and for interim disclosures within 2029, with earlier adoption permitted. The update can be applied either prospectively or retrospectively. We are currently evaluating the impact that adopting this ASU will have on our disclosures. …

NewAccountingPronouncementsPolicyPolicyTextBlock · excerpt; the full note is in the filing

Pension and Other Postretirement Benefits We sponsor various defined benefit pension plans as well as postretirement plans providing retiree health care and retiree life insurance benefits. Below, we discuss our obligations related to these plans, the assets dedicated to meeting the obligations, and the amounts we recognized in our financial statements as a result of sponsoring these plans. Obligations. We provide eligible employees with pension and other postretirement benefits based on factors such as years of service and compensation level during employment. The pension obligation shown below (projected benefit obligation) consists of: (a) benefits earned by employees to date based on current salary levels (accumulated benefit obligation); and (b) benefits to be received by employees as a result of expected future salary increases. (The obligation for medical and life insurance benefits is not affected by future salary increases.) The following table shows how the present value of our projected benefit obligations changed during each of the last two years. Pension Benefits Medical and Life Insurance Benefits 2025 2026 2025 2026 Obligation at beginning of year $ 679 $ 683 $ 36 $ 39 Service cost 16 14 Interest cost 35 30 2 2 Net actuarial loss (gain) 1 5 (2) 3 Plan amendments 9 Retiree contributions 2 3 Benefits paid (52) (119) (5) (7) Special termination benefits 1 Obligation at end of year $ 683 $ 615 $ 39 $ 37 1 The net actuarial loss (gain) during each year was primarily …

PensionAndOtherPostretirementBenefitsDisclosureTextBlock · excerpt; the full note is in the filing

Restructuring and Other Charges On January 13, 2025, our Board of Directors approved a plan to reduce our structural cost base and realign resources toward future sources of growth (Restructuring Initiative). This included reducing our worldwide headcount by approximately 12% and closing our Louisville-based Brown-Forman Cooperage. Most of these actions were implemented in 2025 and substantially completed during 2026. We incurred aggregate restructuring and other charges of $67 in connection with these actions, consisting of $31 in severance and other employee-related costs, $34 in other restructuring charges primarily related to the Brown-Forman Cooperage facility closure and consulting services associated with the restructuring actions, and $2 in other charges for cooperage asset impairments. In 2025, we also recorded $12 in other charges associated with a special one-time early retirement benefit and $3 in charges to adjust the carrying amount of certain Brown-Forman Cooperage inventory to the amount we expected to realize upon disposal (included in cost of sales in our consolidated statement of operations). As of April 30, 2026, $56 of the restructuring charges to be settled in cash have been paid. The following table summarizes the restructuring and other charges recognized in 2025 and 2026, respectively: Year Ended April 30, 2025 2026 Restructuring charges: Severance and other employee-related costs $ 24 $ 7 Other restructuring charges 1 22 12 Restructuring charges 46 1 …

RestructuringAndRelatedActivitiesDisclosureTextBlock · excerpt; the full note is in the filing

Net Sales The following table shows our net sales by geography: Year Ended April 30, 2024 2025 2026 United States $ 1,889 $ 1,765 $ 1,649 Developed International 1 1,154 1,090 1,095 Emerging 2 869 852 974 Travel Retail 3 179 166 177 Non-branded and bulk 4 87 102 33 $ 4,178 $ 3,975 $ 3,928 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, 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, Brazil, and Turkiye. 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. The following table shows our net sales by product category: Year Ended April 30, 2024 2025 2026 Whiskey 1 $ 2,832 $ 2,828 $ 2,901 Ready-to-Drink 2 520 491 542 Tequila 3 306 262 251 Rest of portfolio 4 433 292 201 Non-branded and bulk 5 87 102 33 $ 4,178 $ 3,975 $ 3,928 1 Includes all whiskey spirits and whiskey-based flavored liqueurs. The brands included in this category are the Jack Daniels family of brands (excluding the Ready-to-Drink products outlined below), the Woodford Reserve family of …

RevenueFromContractWithCustomerTextBlock · excerpt; the full note is in the filing

Segment and Other Information Our business constitutes a single operating segment, which derives its revenues predominantly from global sales of beverage alcohol consumer products. Our Chief Executive Officer is our chief operating decision maker, who manages business operations, evaluates performance, and allocates resources based on segment metrics such as net sales, gross profit, operating income, and net income. Significant segment expenses include cost of sales, advertising expenses, and selling, general, and administrative expenses. Other segment items include (when applicable): restructuring and other charges; gain on business divestitures; other intangible assets impairment; other expense (income), net; non-operating postretirement expense; interest income; interest expense; equity method investment income and gain on sale; and income taxes. The amount of each of these segment measures is the same as the consolidated amount presented in the accompanying consolidated statements of operations. The segments assets, expenditures for additions to long-lived assets, and depreciation and amortization are the same as the consolidated amounts presented in the accompanying consolidated balance sheets and consolidated statements of cash flows. The following table presents consolidated net sales by country: Year Ended April 30, 2024 2025 2026 United States $ 1,889 $ 1,765 $ 1,649 Mexico 290 267 319 Germany 263 253 248 Australia 204 199 200 United Kingdom 185 174 164 Other 1 1,347 …

SegmentReportingDisclosureTextBlock · excerpt; the full note is in the filing

Accounting Policies We prepare our consolidated financial statements in conformity with accounting principles generally accepted in the United States (GAAP). We also apply the following accounting policies when preparing our consolidated financial statements: Principles of consolidation. Our consolidated financial statements include the accounts of all subsidiaries in which we have a controlling financial interest. We use the equity method to account for investments in entities that we do not control but over whose operating and financial policies we have the ability to exercise significant influence. We eliminate all intercompany transactions. Estimates. To prepare financial statements that conform with GAAP, our management must make informed estimates that affect how we report revenues, expenses, assets, and liabilities, including contingent assets and liabilities. Actual results could differ from these estimates. Cash equivalents. Cash equivalents include bank demand deposits and all highly liquid investments with original maturities of three months or less. Accounts receivable. Accounts receivable are recorded net of an allowance for expected credit losses (allowance for doubtful accounts). We determine the allowance using information such as customer credit history and financial condition, historical loss experience, and macroeconomic factors. We write off account balances against the allowance when we have exhausted our collection efforts. The allowance for doubtful acc …

SignificantAccountingPoliciesTextBlock · excerpt; the full note is in the filing

Debt Our long-term debt (net of unamortized discount and issuance costs) consisted of: (Principal and carrying amounts in millions) April 30, 2025 January 31, 2026 1.20% senior notes, 300 principal amount, due July 7, 2026 342 356 2.60% senior notes, 300 principal amount, due July 7, 2028 401 410 4.75% senior notes, $650 principal amount, due April 15, 2033 644 644 4.00% senior notes, $300 principal amount, due April 15, 2038 296 296 3.75% senior notes, $250 principal amount, due January 15, 2043 248 249 4.50% senior notes, $500 principal amount, due July 15, 2045 490 490 Total long-term debt (including current portion) 2,421 2,445 Less current portion 356 Total long-term debt $ 2,421 $ 2,089 Our short-term borrowings consisted of borrowings under our commercial paper program, as follows: (Dollars in millions) April 30, 2025 January 31, 2026 Commercial paper (par amount) $313 $301 Average interest rate 4.64% 3.86% Average remaining days to maturity 12 13 …

DebtDisclosureTextBlock · excerpt; the full note is in the filing

The following table shows our net sales by geography: Three Months Ended Nine Months Ended January 31, January 31, (Dollars in millions) 2025 2026 2025 2026 United States $ 459 $ 427 $ 1,367 $ 1,257 Developed International 1 298 307 867 851 Emerging 2 220 276 647 748 Travel Retail 3 35 39 121 131 Non-branded and bulk 4 23 7 79 29 Total $ 1,035 $ 1,056 $ 3,081 $ 3,016 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, and Canada. 2 Represents net sales of branded products to emerging and developing economies as defined by the IMF. Our top emerging markets are Mexico, Poland, Brazil, and Turkiye. 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. The following table shows our net sales by product category: Three Months Ended Nine Months Ended January 31, January 31, (Dollars in millions) 2025 2026 2025 2026 Whiskey 1 $ 749 $ 797 $ 2,177 $ 2,227 Ready-to-Drink 2 126 146 380 412 Tequila 3 68 60 202 189 Non-branded and bulk 4 23 7 79 29 Rest of portfolio 5 69 46 243 159 Total $ 1,035 $ 1,056 $ 3,081 $ 3,016 1 Includes all whiskey spirits and whiskey-based flavor …

DisaggregationOfRevenueTableTextBlock · excerpt; the full note is in the filing

Fair Value Measurements The following table summarizes the assets and liabilities measured or disclosed at fair value on a recurring basis: April 30, 2025 January 31, 2026 Carrying Fair Carrying Fair (Dollars in millions) Amount Value Amount Value Assets Cash and cash equivalents $ 444 $ 444 $ 383 $ 383 Currency derivatives, net 2 2 1 1 Liabilities Currency derivatives, net 12 12 21 21 Contingent consideration 31 31 31 31 Short-term borrowings 312 312 300 300 Long-term debt (including current portion) 2,421 2,255 2,445 2,318 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 …

FairValueDisclosuresTextBlock · excerpt; the full note is in the filing

Goodwill and Other Intangible Assets The following table shows the changes in goodwill (which includes no accumulated impairment losses) during the nine months ended January 31, 2026: (Dollars in millions) Goodwill Balance at April 30, 2025 $ 1,505 Foreign currency translation adjustment 31 Balance at January 31, 2026 $ 1,536 The following table presents details of our other intangible assets as of April 30, 2025 and January 31, 2026, respectively: April 30, 2025 January 31, 2026 (Dollars in millions) Gross Carrying Amount Accumulated Amortization Net Carrying Amount Gross Carrying Amount Accumulated Amortization Net Carrying Amount Definite-lived intangible assets: Supply contract $ $ $ $ 88 $ (6) $ 82 Indefinite-lived intangible assets: Trademarks and brand names 981 981 1,006 1,006 Total other intangible assets $ 981 $ 981 $ 1,094 $ 1,088 During the first quarter of fiscal 2026, we recognized a definite-lived supply contract intangible asset of $88 million. This amount relates to a barrel supply agreement and was obtained as partial consideration for the sale of the Brown-Forman Cooperage facility and related assets on May 1, 2025 (refer to Note 6). We determined the estimated fair value of the supply contract using a discounted cash flow model. This method requires the use of assumptions, such as projected future market prices and discount rates (refer to Note 14). Amortization related to the supply contract used in the production of barrels will be capitalized into inven …

GoodwillAndIntangibleAssetsDisclosureTextBlock · excerpt; the full note is in the filing

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 20.8%, which is less than the U.S. federal statutory rate of 21.0%, due to the beneficial impact of the foreign-derived intangible income deduction and tax credits, mostly offset by state taxes and the tax effects of foreign operations. The effective tax rate of 18.7% for the nine months ended January 31, 2026, was lower than the expected tax rate of 20.8% on ordinary income for the full fiscal year ending April 30, 2026, primarily due to the beneficial impact of prior fiscal year true-ups and tax rate changes in the current period. The effective tax rate of 18.7% for the nine months ended January 31, 2026, was lower than the effective tax rate of 19.5% for the same period last year. The decrease in our effective tax rate was driven primarily by the favorable year-over-year impact of tax rate changes, lower state taxes, tax credits and changes in valuation allowances, which were partially offset by the unfavorable year-over-year impact of prior fiscal year true-ups. The Organization for Economic Co-operation and Developme …

IncomeTaxDisclosureTextBlock · excerpt; the full note is in the filing

Accounting standards not yet adopted. In December 2023, the Financial Accounting Standards Board (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 for the annual period ending April 30, 2026. The update can be applied either prospectively or retrospectively. We are still finalizing our assessment of the additional disclosure requirements and do not expect the adoption to have a material impact on our financial position or results of operations. 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 for the period ending April 30, 2028, and for interim disclosures within fiscal 2029, with earlier adoption permitted. The update can be applied either prospectively or retrospectively. We are currently evaluating the impact that adopting this accounting standards update will have on our disclosures.

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Pension and Other Postretirement Benefits The following table shows the components of the net cost recognized for our U.S. pension and other postretirement benefit plans . Similar information for our international defined benefit plans is not presented due to immateriality. Three Months Ended Nine Months Ended January 31, January 31, (Dollars in millions) 2025 2026 2025 2026 Pension Benefits : Service cost $ 4 $ 3 $ 13 $ 10 Interest cost 9 8 27 23 Expected return on plan assets (10) (8) (29) (25) Amortization of: Prior service cost 1 1 Net actuarial loss 1 1 1 3 Curtailment loss 1 1 Settlement charge 1 22 Net cost $ 5 $ 5 $ 14 $ 34 Other Postretirement Benefits : Interest cost $ $ $ 1 $ 1 Special termination benefits 1 1 Curtailment loss 1 1 Net cost $ 2 $ $ 3 $ 1 During the three months and nine months ended January 31, 2026, we recognized pension settlement charges of $1 million and $22 million, respectively, triggered by fiscal year-to-date lump-sum payments under certain pension plans surpassing total annual service and interest cost for those plans. …

PensionAndOtherPostretirementBenefitsDisclosureTextBlock · excerpt; the full note is in the filing

Restructuring and Other Charges On January 13, 2025, our Board of Directors approved a plan to reduce our structural cost base and realign resources toward future sources of growth (Restructuring Initiative). This included reducing our worldwide headcount by approximately 12% and closing our Louisville-based Brown-Forman Cooperage. These actions were substantially implemented in fiscal 2025, with the remainder to be completed by the end of fiscal 2026. We expect to incur aggregate restructuring charges of approximately $67 to $70 million in connection with these actions, consisting primarily of approximately $31 to $32 million in severance and other employee-related costs and approximately $36 to $38 million in other restructuring costs, including costs related to the Louisville-based Brown-Forman Cooperage facility closure and consulting services associated with the restructuring actions. Through January 31, 2026, we recognized $67 million of restructuring and other charges associated with these actions, comprising $65 million in restructuring charges and $2 million in other charges for asset impairments. In fiscal 2025, we also recorded $12 million in other charges associated with a special, one-time early retirement benefit and $3 million in charges to adjust the carrying amount of certain Brown-Forman Cooperage inventory to the amount we expected to realize upon disposal (included in cost of sales in our consolidated statement of operations). As of January 31, 2026, $52 m …

RestructuringAndRelatedActivitiesDisclosureTextBlock · excerpt; the full note is in the filing

Net Sales The following table shows our net sales by geography: Three Months Ended Nine Months Ended January 31, January 31, (Dollars in millions) 2025 2026 2025 2026 United States $ 459 $ 427 $ 1,367 $ 1,257 Developed International 1 298 307 867 851 Emerging 2 220 276 647 748 Travel Retail 3 35 39 121 131 Non-branded and bulk 4 23 7 79 29 Total $ 1,035 $ 1,056 $ 3,081 $ 3,016 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, and Canada. 2 Represents net sales of branded products to emerging and developing economies as defined by the IMF. Our top emerging markets are Mexico, Poland, Brazil, and Turkiye. 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. The following table shows our net sales by product category: Three Months Ended Nine Months Ended January 31, January 31, (Dollars in millions) 2025 2026 2025 2026 Whiskey 1 $ 749 $ 797 $ 2,177 $ 2,227 Ready-to-Drink 2 126 146 380 412 Tequila 3 68 60 202 189 Non-branded and bulk 4 23 7 79 29 Rest of portfolio 5 69 46 243 159 Total $ 1,035 $ 1,056 $ 3,081 $ 3,016 1 Includes all whiskey spirits and whiskey-ba …

RevenueFromContractWithCustomerTextBlock · excerpt; the full note is in the filing

Segment Information Our business constitutes a single operating segment, which derives its revenues predominantly from global sales of beverage alcohol consumer products. Our Chief Executive Officer is our chief operating decision maker, who manages business operations, evaluates performance, and allocates resources based on segment metrics such as net sales, gross profit, operating income, and net income. Significant segment expenses include cost of sales, advertising expenses, and selling, general, and administrative expenses. Other segment items include (when applicable): restructuring and other charges; other expense (income), net; non-operating postretirement expense; interest income; interest expense; equity method investment income and gain on sale; and income taxes. The amount of each of these segment measures is the same as the consolidated amount presented in the accompanying condensed consolidated statements of operations. The segments assets, expenditures for additions to long-lived assets, and depreciation and amortization are the same as the consolidated amounts presented in the accompanying condensed consolidated balance sheets and condensed consolidated statements of cash flows. …

SegmentReportingDisclosureTextBlock · excerpt; the full note is in the filing

Stockholders Equity The following table shows the changes in stockholders equity by quarter during the nine months ended January 31, 2025: (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 income 195 195 Net other comprehensive income (loss) (43) (43) Declaration of cash dividends (206) (206) Stock-based compensation expense 4 4 Stock issued under compensation plans 3 3 Loss on issuance of treasury stock issued under compensation plans (5) (5) Balance at July 31, 2024 25 47 12 4,250 (264) (605) 3,465 Net income 258 258 Net other comprehensive income (loss) (27) (27) Stock-based compensation expense 9 9 Balance at October 31, 2024 25 47 21 4,508 (291) (605) 3,705 Net income 270 270 Net other comprehensive income (loss) (52) (52) Declaration of cash dividends (107) (107) Stock-based compensation expense 7 7 Balance at January 31, 2025 $ 25 $ 47 $ 28 $ 4,671 $ (343) $ (605) $ 3,823 The following table shows the changes in stockholders equity by quarter during the nine months ended January 31, 2026: (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, 2025 $ 25 $ 47 $ 36 $ 4,710 $ (220) $ (605) $ 3,993 Net income 170 170 Net other comprehensive income (loss) 36 36 Declaration of cash dividends (214) (214) Stock-based co …

StockholdersEquityNoteDisclosureTextBlock · excerpt; the full note is in the filing