Brown Forman Corp 8-K, filed Jan 14, 2025
Brown Forman Corp (BF-B)
8-K
2025-01-14
For: 2025-01-13
View Original
Added on
April 04, 2026
About this 8-K
Brown Forman Corp filed this 8-K on January 14, 2025, reporting on events of January 13, 2025.
Items reported
- Item 2.05: Exit or restructuring costs
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, DC 20549
FORM 8-K
CURRENT REPORT
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Item 2.05. Costs Associated with Exit or Disposal Activities
On January 13, 2025, the Board of Directors of Brown-Forman Corporation (the “Company”) approved a plan to reduce the Company’s structural cost base and realign resources toward future sources of growth. The more efficient corporate cost structure will allow increased investment in the Company’s Make It A Double growth ambition (the “Plan”).
In addition to driving greater strategic alignment, through this effort, the Company has identified opportunities to deliver approximately $70 to $80 million in annualized cost savings, which will include streamlining the organization, optimizing its cost of sales, increasing the use of technology and leveraging scale to drive greater efficiency. A portion of these savings will be reinvested in the business to accelerate growth. In connection with the Plan, the Company expects to reduce its worldwide headcount by approximately 12% and to close its Louisville, Kentucky cooperage facility. The Plan is expected to be substantially implemented in fiscal 2025 with the remainder expected to be completed by the end of fiscal 2026.
In connection with the Plan, the Company expects to incur aggregate charges of approximately $60 to $70 million consisting primarily of employee severance and other one-time costs related to employee benefits (approximately $27 to $32 million), and one-time costs related to the cooperage facility closure (approximately $22 to $27 million), as well as other miscellaneous one-time costs in connection with the Plan. The Company expects that the charges will primarily be cash expenditures and that the Company will recognize a majority of these charges in fiscal 2025.
The foregoing disclosure contains statements, estimates and projections that are “forward-looking statements” as defined under U.S. federal securities laws. These forward-looking statements include the size and scope of the Plan, and the approximate amount and expected timing of the related cost savings and charges. By their nature, forward-looking statements involve risks, uncertainties and other factors (many beyond the Company’s control) that could cause the actual results to differ materially from the Company’s current expectations or projections. Readers are cautioned that these forward-looking statements are only predictions and may differ materially from actual future events or results due to a variety of factors, including the Company’s ability to achieve the benefits of the Plan and possible changes in the size and timing of the related cost savings and charges, including as a result of local law requirements in various jurisdictions and additional costs due to unanticipated events. For information regarding other factors that could cause the Company’s results to vary from expectations, please refer to the Company’s public filings, including the “Risk Factors” section of the Company’s Annual Report on Form 10-K and Quarterly Reports on Form 10-Q filed with the Securities and Exchange Commission. Except as required by law, the Company does not intend to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.
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 hereunto duly authorized.
| BROWN-FORMAN CORPORATION | |||||
| (Registrant) | |||||
| Date: January 14, 2025 | /s/ Michael E. Carr, Jr. | ||||
| Michael E. Carr, Jr. | |||||
| Executive Vice President, General Counsel and Corporate Secretary | |||||