Brown Forman Corp 8-K, filed Mar 3, 2021

Brown Forman Corp (BF-B)

8-K 2021-03-03 For: 2021-03-03

Added on April 04, 2026

About this 8-K

Brown Forman Corp filed this 8-K on March 3, 2021.


Title of each class	Trading Symbol(s)	Name of each exchange on which registered
Class A Common Stock (voting), $0.15 par value	BFA	New York Stock Exchange
Class B Common Stock (nonvoting), $0.15 par value	BFB	New York Stock Exchange
1.200% Notes due 2026	BF26	New York Stock Exchange
2.600% Notes due 2028	BF28	New York Stock Exchange


Exhibit No.						Description
99.1						Brown-Forman Corporation Press Release dated March 3, 2021.
104						Cover Page Interactive Data File (embedded within the Inline XBRL document).


			BROWN-FORMAN CORPORATION
			(Registrant)


Date: March 3, 2021			/s/ Jaileah X. Huddleston
			Jaileah X. Huddleston
			Vice President, Associate General Counsel - Corporate and Securities Law, and Assistant Secretary


	2020			2021			Change



Net sales	$	899		$	911		1%
Cost of sales	342			361			5%
Gross profit	557			550			(1%)
Advertising expenses	104			121			17%
Selling, general, and administrative expenses	153			157			3%


Other expense (income), net	(4)			(9)
Operating income	304			281			(8%)
Non-operating postretirement expense	1			1
Interest expense, net	19			21
Income before income taxes	284			259			(8%)
Income taxes	53			40
Net income	$	231		$	219		(5%)

Earnings per share:
Basic	$	0.48		$	0.46		(5%)
Diluted	$	0.48		$	0.45		(5%)

Gross margin	61.9		%	60.4		%
Operating margin	33.8		%	30.9		%

Effective tax rate	18.6		%	15.7		%

Cash dividends paid per common share	$	0.1743		$	0.1795

Shares (in thousands) used in the
calculation of earnings per share
Basic	477,898			478,599
Diluted	480,757			480,836


	2020			2021			Change



Net sales	$	2,654		$	2,649		0%
Cost of sales	980			1,053			7%
Gross profit	1,674			1,596			(5%)
Advertising expenses	308			278			(10%)
Selling, general, and administrative expenses	475			460			(3%)

Gain on sale of business	—			(127)
Other expense (income), net	(13)			(13)
Operating income	904			998			10%
Non-operating postretirement expense	3			4
Interest expense, net	58			60
Income before income taxes	843			934			11%
Income taxes	144			151
Net income	$	699		$	783		12%

Earnings per share:
Basic	$	1.46		$	1.64		12%
Diluted	$	1.45		$	1.63		12%

Gross margin	63.1		%	60.3		%
Operating margin	34.1		%	37.7		%

Effective tax rate	17.1		%	16.2		%


Cash dividends paid per common share	$	0.5063		$	0.5281

Shares (in thousands) used in the
calculation of earnings per share
Basic	477,643			478,471
Diluted	480,436			480,665


	April 30, 2020		January 31, 2021
Assets:
Cash and cash equivalents	$	675	$	1,106
Accounts receivable, net	570		820
Inventories	1,685		1,723

Other current assets	335		265
Total current assets	3,265		3,914

Property, plant, and equipment, net	848		826
Goodwill	756		774
Other intangible assets	635		676
Other assets	262		305
Total assets	$	5,766	$	6,495

Liabilities:
Accounts payable and accrued expenses	$	517	$	603
Dividends payable	—		86
Accrued income taxes	30		43
Short-term borrowings	333		312


Total current liabilities	880		1,044

Long-term debt	2,269		2,347
Deferred income taxes	177		146
Accrued postretirement benefits	297		296
Other liabilities	168		194
Total liabilities	3,791		4,027

Stockholders’ equity	1,975		2,468

Total liabilities and stockholders’ equity	$	5,766	$	6,495


	2020		2021

Cash provided by operating activities	$	509	$	572

Cash flows from investing activities:
Proceeds from sale of business	—		177
Acquisition of business, net of cash acquired	(22)		(14)
Additions to property, plant, and equipment	(84)		(41)

Other	(5)		(2)
Cash provided by (used for) investing activities	(111)		120

Cash flows from financing activities:
Net change in short-term borrowings	(150)		(23)



Acquisition of treasury stock	(1)		—
Dividends paid	(242)		(253)
Other	(33)		(18)
Cash used for financing activities	(426)		(294)

Effect of exchange rate changes on cash and cash equivalents	(3)		33

Net increase (decrease) in cash and cash equivalents	(31)		431

Cash and cash equivalents, beginning of period	307		675

Cash and cash equivalents, end of period	$	276	$	1,106


Brown-Forman Corporation
Supplemental Information (Unaudited)


	Three Months Ended	Nine Months Ended	Fiscal Year Ended
	January 31, 2021	January 31, 2021	April 30, 2020



Reported change in net sales	1%	—%	1%


Foreign exchange	(2)%	—%	1%
Estimated net change in distributor inventories	1%	3%	(2)%

Underlying change in net sales	—%	2%	—%


Reported change in gross profit	(1)%	(5)%	(2)%
Acquisitions and divestitures	1%	—%	—%

Foreign exchange	(2)%	—%	—%
Estimated net change in distributor inventories	2%	3%	(2)%

Underlying change in gross profit	(1)%	(1)%	(3)%

Reported change in advertising expenses	17%	(10)%	(3)%
Acquisitions and divestitures	1%	—%	—%

Foreign exchange	(2)%	(1)%	1%

Underlying change in advertising expenses	16%	(10)%	(2)%

Reported change in SG&A	3%	(3)%	—%
Acquisitions and divestitures	(1)%	—%	(1)%


Foreign exchange	(1)%	—%	2%


Underlying change in SG&A	1%	(4)%	1%

Reported change in operating income	(8)%	10%	(5)%
Acquisitions and divestitures	1%	(13)%	—%

Chambord Impairment	—%	—%	1%

Foreign exchange	(5)%	(1)%	—%
Estimated net change in distributor inventories	4%	7%	(3)%

Underlying change in operating income	(8)%	3%	(6)%

Note: Totals may differ due to rounding


		% Change vs. Prior Year Period
Brand3	Depletions3		Net Sales2
		9-Liter	Drinks Equivalent3	Reported	Acquisitions and Divestitures	Foreign Exchange	Estimated Net Change in Distributor Inventories	Underlying
Whiskey		11%	1%	1%	—%	—%	3%	4%
Jack Daniel’s family of brands		11%	0%	(2)%	—%	—%	3%	2%
Jack Daniel’s Tennessee Whiskey		(7)%	(7)%	(10)%	—%	—%	3%	(7)%
Jack Daniel’s RTD and RTP		35%	35%	38%	—%	(1)%	(3)%	34%
Jack Daniel’s Tennessee Honey		9%	9%	9%	—%	(1)%	2%	10%
Gentleman Jack		14%	14%	12%	—%	—%	1%	12%
Jack Daniel’s Tennessee Fire		(1)%	(1)%	(7)%	—%	—%	4%	(2)%
Jack Daniel’s Tennessee Apple		138%	138%	14%	—%	(3)%	96%	107%
Other Jack Daniel’s Whiskey Brands		(5)%	(5)%	(7)%	—%	(1)%	8%	—%
Woodford Reserve		17%	17%	15%	—%	—%	3%	18%
Rest of Whiskey		8%	8%	17%	3%	(1)%	4%	23%
Tequila		23%	(3)%	2%	—%	5%	(1)%	6%
el Jimador		(10)%	(10)%	(3)%	—%	2%	1%	1%
Herradura		(13)%	(13)%	2%	—%	3%	(5)%	—%
Rest of Tequila		33%	12%	10%	—%	12%	1%	23%
Wine		5%	5%	2%	—%	—%	7%	9%
Vodka		(18)%	(18)%	(21)%	—%	1%	1%	(19)%
Rest of Portfolio		(1)%	(1)%	25%	(3)%	(21)%	—%	2%

Non-Branded and Bulk		NM	NM	(32)%	(1)%	(1)%	—%	(34)%
Total Portfolio		11%	(1)%	—%	—%	—%	3%	2%
Other Brand Aggregations
American whiskey		11%	1%	—%	—%	—%	3%	3%

Premium bourbons		17%	17%	18%	—%	—%	3%	21%



Geographic Area3	Net Sales2
	Reported	Acquisitions and Divestitures	Foreign Exchange	Estimated Net Change in Distributor Inventories	Underlying
United States	3%	—%	—%	4%	7%
Developed International	10%	—%	(5)%	2%	7%
United Kingdom	11%	—%	(9)%	1%	3%
Germany	18%	—%	(4)%	—%	14%
Australia	33%	—%	(5)%	—%	28%
France	14%	—%	(5)%	—%	9%


Rest of Developed International	(10)%	(1)%	(2)%	5%	(8)%
Emerging	(8)%	—%	6%	3%	1%
Mexico	(9)%	—%	11%	—%	1%
Poland	7%	—%	(1)%	—%	5%
Russia	(18)%	—%	5%	8%	(4)%
Rest of Emerging	(10)%	—%	7%	4%	—%
Travel Retail	(55)%	—%	—%	1%	(54)%
Non-Branded and Bulk	(32)%	(1)%	(1)%	—%	(34)%
Total	—%	—%	—%	3%	2%


	Nine Months Ended
	January 31, 2020		January 31, 2021

Cash provided by operating activities	$	509	$	572
Additions to property, plant, and equipment	(84)		(41)
Free Cash Flow2	$	425	$	531