Brown Forman Corp Liquidation Value

Brown-Forman's liquidation posture as of January 31, 2026 is deeply negative, consistent with the MFFAIS-reported CLV of -$3.24B and LLV of -$2.25B. The OLV of +$307M reflects only marginal tangible asset coverage after stripping intangibles. The balance sheet carries $8.30B in total assets, but the liquidation-relevant haircuts eliminate most of that value: $1.54B in goodwill and $1.09B in other intangibles receive zero recovery; $2.56B in inventory (predominantly aging whiskey barrels classified under OtherInventoryNetOfReserves at $1.56B) recovers at 60 cents on the dollar at best; $1.11B in PP&E recovers at 50-70%. Against these haircut assets, $4.22B in liabilities stands at face value, including $2.45B in long-term debt, $1.53B in current liabilities, and $172M in pension obligations. The $300M in commercial paper classified under ShortTermBorrowings and $356M in long-term debt current (notes maturing July 2026) represent near-term cash obligations that must be settled at face. The pension obligation ($172M noncurrent) does not extinguish on winding up. Key developments since the prior 10-Q (October 31, 2025): cash increased from $319M to $383M as operating cash generation ($709M YTD) more than offset $400M in completed share repurchases and $321M in dividends. LongTermDebt is unchanged at $2.45B. The $1.56B in aged spirits inventory (LIFO, with a $684M LIFO reserve disclosed) is the largest single swing factor in any liquidation scenario; distressed bulk spirits markets would compress realized values well below even a 60% haircut. Inventory increased modestly QoQ. Restructuring charges of $19M YTD (down from $33M prior-year YTD) and the completed sale of the Brown-Forman Cooperage marginally shifted the tangible asset mix. No new debt issuance, no material change to the pension or lease stack.