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United States Securities and Exchange Commission
Washington, D.C. 20549
FORM 10-K
ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934
For the fiscal year ended April 30, 1995
Commission file number 1-123
BROWN-FORMAN CORPORATION
(Exact name of Registrant as specified in its charter)
DELAWARE 61-0143150
(State or other jurisdiction of (IRS Employer
incorporation or organization) Identification No.)
850 DIXIE HIGHWAY 40210
LOUISVILLE, KENTUCKY (Zip Code)
(Address of principal executive offices)
REGISTRANT'S TELEPHONE NUMBER, INCLUDING AREA CODE (502) 585-1100
SECURITIES REGISTERED PURSUANT TO SECTION 12(b) OF THE ACT:
NAME OF EACH EXCHANGE ON
TITLE OF EACH CLASS WHICH REGISTERED
------------------- ----------------
Preferred $.40 Cumulative Stock, $10.00 par value, New York Stock Exchange
redeemable at company's option at $10.25 per share
plus unpaid accrued dividends; liquidating value
$10.00 per share plus unpaid accrued dividends
Class A Common Stock (voting) $.15 par value New York Stock Exchange
Class B Common Stock (nonvoting) $.15 par value New York Stock Exchange
Securities registered pursuant to Section 12(g) None
of the Act
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 X No
----- -----
Indicate by check mark if disclosure of delinquent filers pursuant to Item 405
of Regulation S-K is not contained herein, and will not be contained, to the
best of registrant's knowledge, in definitive proxy or information statements
incorporated by reference in Part III of this Form 10-K or any amendment to this
Form 10-K. [ ]
The aggregate market value, at April 30, 1995, of the voting stock held by
nonaffiliates of the registrant was $224,608,000.
The number of shares outstanding for each of the registrant's classes of Common
Stock on May 25, 1995 was:
Class A Common Stock (voting) 28,988,091
Class B Common Stock (nonvoting) 40,008,147
DOCUMENTS INCORPORATED BY REFERENCE
-----------------------------------
Portions of the Registrant's 1995 Annual Report to Stockholders are incorporated
by reference into Parts I, II, and IV of this report. Portions of the Proxy
Statement of Registrant, dated July 3, 1995, for use in connection with the
Annual Meeting of Stockholders to be held July 27, 1995 are incorporated by
reference into Parts III and IV of this report.
PART I
Item 1. Business
(a) General development of business:
Brown-Forman Corporation was incorporated under the laws of the State of
Delaware in 1933, successor to a business founded in 1870 as a partnership and
subsequently incorporated under the laws of Kentucky in 1901. Its principal
executive offices are located at 850 Dixie Highway, Louisville, Kentucky 40210
(mailing address: P.O. Box 1080, Louisville, Kentucky 40201-1080). Except as
the context may otherwise indicate, the terms "Brown-Forman" and "company" refer
to Brown-Forman Corporation and its subsidiaries.
(b) Financial information about industry segments:
Information regarding net sales, operating income, and total assets of each of
the company's business segments is in Note 11 of Notes to Consolidated Financial
Statements on page 37 of the company's 1995 Annual Report to Stockholders, which
information is incorporated herein by reference in response to Item 8.
(c) Narrative description of business:
The following is a description of the company's operations.
Wines and Spirits Segment
Wines and Spirits operations include manufacturing, bottling, importing,
exporting, and marketing a wide variety of alcoholic beverage brands. This
Segment also manufactures and markets new and used oak barrels, plastic
closures, and plastic bottles.
Brands are grouped into three categories: North American Spirits, Imported and
Specialty Items, and Wines.
North American Spirits consists of the following brands:
Jack Daniel's Tennessee Whiskey
Canadian Mist Canadian Whisky
Jack Daniel's Country Cocktails
Southern Comfort
Early Times Old Style Kentucky Whisky
Old Forester Kentucky Straight Bourbon Whisky
Gentlemen Jack Rare Tennessee Whiskey
Korbel California Brandies **
Pepe Lopez Tequila
Statistics based on case sales, published annually by a leading trade
publication, rank Jack Daniel's as the largest selling Tennessee whiskey in the
United States, Canadian Mist as the largest selling Canadian whisky in the
United States, and Southern Comfort as the largest selling domestic proprietary
liqueur in the United States.
-2-
Imported and Specialty Items consists of the following brands:
Bushmills Irish Whiskies*
Black Bush Special Irish Whiskey*
Glenmorangie Single Highland Malt Scotch Whisky*
Usher's Scotch Whisky*
Tropical Freezes
Wines consists of the following brands:
Fetzer Vineyards California Wines
Korbel California Champagnes**
Korbel California Wines*
Bolla Italian Wines*
Jekel Vineyards California Wines
Bel Arbor California Wines
Fontana Candida Italian Wines*
Brolio Italian Wines*
Carmen Vineyards Chilean Wines*
Fontanafredda Italian Wines*
Armstrong Ridge California Champagne*
Noilly Prat Vermouths*
* Brands marketed by Brown-Forman in the U.S. and other select markets by
agency agreements.
** Brands marketed by Brown-Forman worldwide by agency agreement.
A leading industry trade publication reported Korbel California Champagnes as
the largest selling premium champagne in the United States. This trade
publication also reported that, among numerous imported wines, Bolla Italian
Wine is the leading premium imported table wine in the United States. Fetzer
was ranked seventeenth among all table wines.
Brown-Forman believes that statistics used to rank these products are reasonably
accurate.
Brown-Forman's strategy with respect to the Wines and Spirits Segment is to
market high quality products that satisfy consumer preferences and support them
with extensive international, national, and regional marketing programs. These
programs are intended to extend consumer brand recognition and brand loyalty.
Sales managers and representatives or brokers represent the Segment in all
states. The Segment distributes its spirits products domestically either
through state agencies or through wholesale distributors. The contracts which
Brown-Forman has with many of its distributors have formulas which determine
reimbursement to distributors if Brown-Forman terminates them; the amount of
reimbursement is based primarily on the distributor's length of service and a
percentage of its purchases over time. Some states have statutes which limit
Brown-Forman's ability to terminate distributor contracts.
Jack Daniel's Tennessee Whiskey and Southern Comfort are the principal products
exported by the Segment. These brands are sold through contracts with brokers
and distributors in most countries.
The principal raw materials used in manufacturing and packaging distilled
spirits are corn, rye, malted barley, glass, cartons, and wood for new white oak
barrels, which are used for storage of bourbon and Tennessee
-3-
whiskey. None of these raw materials are in short supply, and there are
adequate sources from which they may be obtained.
Production of whiskies is scheduled to meet demand three to five years in the
future. Accordingly, inventories are larger in relation to sales and total
assets than would be normal for most other business segments.
The industry is highly competitive and there are many brands sold in the
consumer market. Trade information indicates that Brown-Forman is one of the
largest wine and spirit suppliers in the United States in terms of revenues.
The wine and spirits industry is regulated by the Bureau of Alcohol, Tobacco,
and Firearms of the United States Treasury Department with respect to
production, blending, bottling, sales, advertising, and transportation of its
products. Also, each state regulates advertising, promotion, transportation,
sale, and distribution of such products.
Under federal regulations, whisky must be aged for at least two years to be
designated "straight whisky." The Segment ages its straight whiskies for a
minimum of three to five years. Federal regulations also require that
"Canadian" whisky must be manufactured in Canada in compliance with Canadian
laws and must be aged in Canada for at least three years.
Consumer Durables Segment
The Consumer Durables Segment includes the manufacturing and/or marketing of the
following:
Fine China Dinnerware
Contemporary Dinnerware
Crystal Stemware
Crystal Barware
China and Crystal Giftware
China and Crystal Lamps
Collectibles and Jewelry
Sterling Silver, Pewter and Silver-Plated
Giftware
Sterling Silver and Stainless Steel Flatware
Fine Table Linens
Luggage
Business Cases and Folios
Personal Leather Accessories
All of the products of the Segment are sold by segment-employed sales
representatives under various compensation arrangements, and where appropriate
to the class of trade, by specialized independent commissioned sales
representatives.
The Segment's products are marketed domestically through authorized retail
stores consisting of department stores and specialty and jewelry shops and
through retail stores operated by the Segment. Products are also distributed
domestically through the institutional, incentive, premium, business gift and
military exchange classes of trade, and internationally through authorized
retailers and/or distributors in selected foreign markets. Specially created
collectible products are distributed both domestically and in selected foreign
markets through the Segment's direct response/mail-order division.
-4-
Fine china and crystal products are marketed under both the Lenox and Gorham
trademarks. Contemporary dinnerware, glassware and flatware products are
marketed under the Dansk trademark. Sterling silver flatware and giftware and
stainless steel flatware products are marketed under both the Gorham and Kirk
Stieff trademarks. Kirk Stieff also markets pewter and silver-plated giftware.
Luggage, business cases, and personal accessories are marketed under the
Hartmann, Wings and Crouch & Fitzgerald trademarks. The direct response/mail-
order sales in the United States of specially designed collectibles are marketed
under the Lenox, Princeton Gallery and Gorham trademarks while such sales abroad
are marketed primarily under the Brooks & Bentley trademark.
The Lenox, Dansk, Gorham, and Hartmann brand names hold significant positions in
their industries. The Segment has granted to a producer of high quality table
linens a license for use of the Lenox trademarks on selective fine table linens,
subject to the terms of a licensing agreement.
The Segment believes that it is the largest domestic manufacturer and marketer
of fine china dinnerware, fine crystal stemware, and pewter giftware, and the
only significant domestic manufacturer of fine quality china giftware. The
Segment is also a leading manufacturer and distributor of fine quality luggage,
business cases, and personal leather accessories. The Segment competes with a
number of other companies and is subject to intense foreign competition in the
marketing of its fine china and contemporary dinnerware, crystal stemware and
giftware, and luggage products.
In the Segment's china and crystal businesses, competition is based primarily on
quality, design, brand, style, product appeal, consumer satisfaction, and price.
In its luggage, business case and personal leather accessories business,
competition is based primarily on brand awareness, quality, design, style, and
price. In its direct response/mail-order business, the most important
competitive factors are the brand, product appeal, design, sales/marketing
program, service, and price of the products. In its sterling silver, silver-
plated, and stainless steel business, competition is based primarily on price,
with quality, design, brand, style, product appeal, and consumer satisfaction
also being factors. In its pewter business, competition is based primarily on
quality, design, brand, and delivery, with price being a less significant
factor.
Clay is the principal raw material used to manufacture china products and silica
is the principal raw material used to manufacture crystal products. Leather and
nylon fabric are the principal raw materials used to manufacture luggage and
business cases. Fine silver is the principal raw material used to manufacture
sterling silver giftware and flatware products, and tin is the principal raw
material used to manufacture pewter products. It is anticipated that raw
materials used by the Segment will be in adequate supply. The acquisition price
of fine silver and tin is, however, influenced significantly by world-wide
economic events and commodity trading.
Sales of certain Segment products are traditionally greater in the second
quarter of the fiscal year, primarily because of seasonal holiday buying.
Other Segment
This segment was discontinued effective November 1, 1993.
-5-
Other Information
As of April 30, 1995, the company employs approximately 7,300 persons, including
900 employed on a part-time basis.
The company is an equal opportunity employer and recruits and places employees
without regard to race, color, national origin, sex, age, religion, disability,
or veteran status.
The company believes its employee relations are good.
For information on the effects of compliance with federal, state, and local
environmental regulations, refer to Note 13, "Environmental," on page 37 of the
company's 1995 Annual Report to Stockholders, which information is incorporated
herein by reference in response to Item 8.
-6-
Item 2. Properties
- ------- ----------
The corporate offices consist of office buildings, including renovated historic
structures, all located in Louisville, Kentucky.
Significant properties by business segments are as follows:
Wines and Spirits Segment
- -------------------------
The facilities of the Wines and Spirits Segment are shown below. The owned
facilities are held in fee simple.
Owned facilities:
. Production facilities:
- Distilled Spirits and Wines:
- Lynchburg, Tennessee
- Louisville, Kentucky
- Collingwood, Ontario
- Shively, Kentucky
- Frederiksted, St. Croix, U.S. Virgin Islands
- Mendocino County, California
- Monterey County, California
- Oak Barrels:
- Louisville, Kentucky
- Mendocino County, California
- Plastic Closures and Plastic Bottles:
- Louisville, Kentucky
. Bottling facilities:
- Lynchburg, Tennessee
- Louisville, Kentucky
- Frederiksted, St. Croix, U.S. Virgin Islands
- Monterey County, California
. Warehousing facilities:
- Lynchburg, Tennessee
- Louisville, Kentucky
- Collingwood, Ontario
- Shively, Kentucky
- Monterey County, California
- Mendocino County, California
Leased facilities:
. Production and bottling facility in Dublin, Ireland
. Wine production, warehousing and bottling facility in Mendocino County,
California
. Vineyards in Monterey County, California
The company believes that the productive capacities of the Wines and Spirits
Segment are adequate for the business, and such facilities are maintained in a
good state of repair.
-7-
Consumer Durables Segment
- -------------------------
The facilities of the Consumer Durables Segment are shown below. The owned
facilities are held in fee simple.
Owned facilities:
. Office facilities:
- Lenox corporate - Lawrenceville, New Jersey
- Headquarters for Lenox Direct Response/Mail-Order
Division - Langhorne, Pennsylvania
. Production and office facilities:
- Lenox - Pomona, New Jersey (includes retail store); Oxford,
North Carolina;
Kinston, North Carolina; and Mt. Pleasant, Pennsylvania
(includes retail store)
- Gorham - Smithfield, Rhode Island
- Hartmann - Lebanon, Tennessee (includes retail store)
. Warehousing facilities:
- Lenox/Dansk/Gorham - Williamsport, Maryland
Leased facilities:
. Office facilities:
- Lenox Manufacturing - Egg Harbor Township, New Jersey
- Dansk headquarters - Harrison, New York
- Lenox corporate - Lawrenceville, New Jersey
. Production/Warehousing/Office facilities:
- Kirk Stieff - Baltimore City, Maryland (includes retail store)
. Warehousing facilities:
- Lenox - South Brunswick, New Jersey (includes retail stores);
Oxford, North Carolina; Kinston, North Carolina; and Mt.
Pleasant, Pennsylvania
- Hartmann - Lebanon, Tennessee
. Retail stores:
- The segment operates 22 Lenox China Outlet stores in 16 states. The
Segment also operates 48 Dansk Outlet stores in 29 states, 7 Dansk
Lifestyle stores in 6 states and 8 Gorham Outlet stores in 7 states.
In addition, the Segment operates 2 Crouch & Fitzgerald luggage stores
in 2 states.
The lease terms expire at various dates and are generally renewable, except for
the Crouch & Fitzgerald store leases.
The company is of the opinion that the Segment's facilities are in good
condition and are adequate for the business.
-8-
Item 3. Legal Proceedings
- ------- -----------------
(a) Adams, et al. v. Brown-Forman Corporation (U.S. District Court, Middle
District of Florida, Tampa Division):
As previously reported, Brown-Forman Corporation was a defendant
in a number of cases, consolidated for trial in federal district court
in Tampa, Florida, alleging age discrimination as a result of a 1986
company reorganization. The case has been resolved in a manner that
will not have a material adverse effect on the company's financial
position or results of operations. As part of the resolution, all
claims against the company have been dismissed.
(b) Brune v. Brown-Forman Corporation (214th District Court, Neuces
County, Texas):
As previously reported, Brown-Forman Corporation was sued by the
estate of Marie Brinkmeyer, an 18 year old college student who died
after consuming massive quantities of beverage alcohol, including Pepe
Lopez Tequila (a Brown-Forman product.) A jury determined Brown-
Forman to be 35% responsible for Marie's death and Marie to be 65%
responsible.
The Texas Court of Appeals reversed the jury award against Brown-
Forman and dismissed the plaintiff's claims in their entirety, holding
that the Company had no legal duty to warn consumers of the well-known
risks of abusive overconsumption of beverage alcohol.
On April 27, 1995, the Texas Supreme Court denied the plaintiff's
petition for review. The judgment of the Texas Court of Appeals in
favor of Brown-Forman is now final and the case is concluded.
Item 4. Submission of Matters to a Vote of Security Holders
- ------- ---------------------------------------------------
None.
-9-
EXECUTIVE OFFICERS OF THE REGISTRANT
- ------------------------------------
Principal Occupation and
Name Age Business Experience Family Relationship
- ---------------------- --- ------------------------ --------------------
W. L. Lyons Brown, Jr. 58 Chairman of the company Brother to Owsley
since July, 1993. Brown II;
Chairman and Chief Cousin to Owsley
Executive Officer of the Brown Frazier
company from May 1983 to
July 1993.
Owsley Brown II 52 President and Chief Brother to W. L.
Executive Officer Lyons Brown, Jr.;
of the company since Cousin to Owsley
July 1993. President Brown Frazier
of the company from July
1987 to July 1993.
Owsley Brown Frazier 59 Vice Chairman of the Cousin to W. L.
company since August Lyons Brown, Jr.
1983. and Owsley Brown II
William M. Street 56 Vice Chairman of the None
company since July
1987.
Steven B. Ratoff 52 Executive Vice None
President and Chief
Financial Officer of
the company since
December 1994. Private
investor in a number
of small privately-held
companies from February
1992 to November 1994.
Senior Vice President
and Chief Financial
Officer for
Pharmaceutical Group
of Bristol-Myers Squibb
from January 1990 to
January 1992.
John P. Bridendall 45 Senior Vice President None
and Director of
Corporate Development
since July 1987.
Russell C. Buzby 61 Senior Vice President None
and Executive Director
of Human Resources and
Information Services
since July 1987.
Michael B. Crutcher 51 Senior Vice President, None
General Counsel, and
Secretary since May 1989.
-10-
Malcolm Jozoff (1) 55 Chairman and Chief Executive Officer None
of Lenox, Incorporated (a subsidiary of
the company) since October 1993.
Independent consultant on marketing
and strategic planning from June 1992
to October 1993. Group Vice President,,
The Procter & Gamble Company, from
1985 to 1992, and President -- Health
Care Products, Procter & Gamble USA,
from 1991 to 1992.
Lois A. Mateus 48 Senior Vice President of Corporate None
Communications and Corporate
Services since January 1988.
(1) In 1993, in connection with a civil proceeding brought by the Securities and
Exchange Commission, Mr. Jozoff consented, without admitting or denying the
allegations, to the entry of an order enjoining him from violating Section 10(b)
of the Securities Exchange Act of 1934.
-11-
PART II
Item 5. Market for the Registrant's Common Stock and Related Stockholder
- ------------------------------------------------------------------------
Matters
- -------
Except as presented below, for the information required by this item refer to
the section entitled "Quarterly Financial Information" appearing on the
"Highlights" page of the 1995 Annual Report to Stockholders, which information
is incorporated herein by reference.
Holders of record of Common Stock at May 25, 1995:
Class A Common Stock (Voting) 2,870
Class B Common Stock (Nonvoting) 5,018
The principal market for Brown-Forman Corporation common shares is the New York
Stock Exchange.
Item 6. Selected Financial Data
- -------------------------------
For the information required by this item, refer to the section entitled
"Consolidated Selected Financial Data" appearing on pages 18 and 19 of the 1995
Annual Report to Stockholders, which information is incorporated herein by
reference in response to Item 8.
Item 7. Management's Discussion and Analysis of Financial Condition and Results
- -------------------------------------------------------------------------------
of Operations
- -------------
For the information required by this item, refer to the section entitled
"Financial Review" appearing on pages 22 through 26 of the 1995 Annual Report to
Stockholders, which information is incorporated herein by reference in response
to Item 8.
Item 8. Financial Statements and Supplementary Data
- ---------------------------------------------------
For the information required by this item, refer to the Report of Management,
Consolidated Financial Statements, Notes to Consolidated Financial Statements,
and Report of Independent Accountants appearing on pages 17 and 27 through 38 of
the 1995 Annual Report to Stockholders, which information is incorporated herein
by reference. For selected quarterly financial information, refer to the
section entitled "Quarterly Financial Information" appearing on the "Highlights"
page of the 1995 Annual Report to Stockholders, which information is
incorporated herein by reference.
Item 9. Changes in and Disagreements with Accountants on Accounting and
- -----------------------------------------------------------------------
Financial Disclosure
- --------------------
None.
-12-
PART III
Item 10. Directors and Executive Officers of the Registrant
- -----------------------------------------------------------
For the information required by this item, refer to the following sections of
the registrant's definitive proxy statement for the Annual Meeting of
Stockholders to be held July 27, 1995, which information is incorporated herein
by reference: (a) "Election of Directors" on page 1 through the footnote on
page 2 (for information on directors); and (b) the last paragraph on page 4 (for
information on delinquent filings). Also, see the information with respect to
"Executive Officers of the Registrant" under Part I hereof, which information is
incorporated herein by reference.
Item 11. Executive Compensation
- -------------------------------
For the information required by this item, refer to the section entitled
"Executive Compensation" on pages 5 through 16 of the registrant's definitive
proxy statement for the Annual Meeting of Stockholders to be held July 27, 1995,
which information is incorporated herein by reference.
Item 12. Security Ownership of Certain Beneficial Owners and Management
- -----------------------------------------------------------------------
For the information required by this item, refer to the section entitled
"Security Ownership of Certain Beneficial Owners and Management" appearing on
pages 3 and 4 of the registrant's definitive proxy statement for the Annual
Meeting of Stockholders to be held July 27, 1995, which information is
incorporated herein by reference.
Item 13. Certain Relationships and Related Transactions
- -------------------------------------------------------
For the information required by this item, refer to the section entitled
"Transactions with Management" appearing on page 17 of the registrant's
definitive proxy statement for the Annual Meeting of Stockholders to be held
July 27, 1995, which information is incorporated herein by reference.
-13-
PART IV
Item 14. Exhibits, Financial Statement Schedules, and Reports on Form 8-K
- -------------------------------------------------------------------------
(a) 1 and 2 - Index to Consolidated Financial Statements and Schedules:
Reference
------------------------------
Annual
Form 10-K Report to
Annual Report Stockholders
Page Page(s)
------------- ---------------
Incorporated by reference to the company's
Annual Report to Stockholders for the
year ended April 30, 1995:
Report of Management* -- 17
Consolidated Statement of Income
for the years ended April 30, 1995, 1994, and 1993* -- 27
Consolidated Balance Sheet at April 30, 1995, 1994, and 1993* -- 28 - 29
Consolidated Statement of Cash Flows for the years ended
April 30, 1995, 1994, and 1993* -- 30
Consolidated Statement of Stockholders' Equity
for the years ended April 30, 1995, 1994, and 1993* -- 31
Notes to Consolidated Financial Statements* -- 32 - 38
Report of Independent Accountants 38
Report of Independent Accountants S-1 --
Consolidated Financial Statement Schedule:
VIII - Valuation and Qualifying Accounts S-2 --
All other schedules for which provision is made in the applicable accounting
regulations of the Securities and Exchange Commission have been omitted either
because they are not required under the related instructions, because the
information required is included in the consolidated financial statements and
notes thereto, or because they are inapplicable.
* Incorporated by reference to Item 8 herein.
(a) 3 - Exhibits:
Filed Herewith:
Exhibit Index
- --------------
4(a) Credit agreement dated as of November 30, 1994, among the company and a
group of United States and international banks.
10(a) Description of compensation arrangement with W. L. Lyons Brown, Jr.
13 Company's Annual Report to Stockholders for the year ended April 30,
1995, but only to the extent set forth in Items 1, 3, 5, 6, 7, and 8 of
the company's Annual Report on Form 10-K for the year ended April 30,
1995.
-14-
21 Subsidiaries of the Registrant.
23 Consent of Coopers & Lybrand L.L.P. independent accountants.
27 Financial Data Schedule (not considered to be filed).
Previously Filed:
Exhibit Index
- -------------
3(a) Restated Certificate of Incorporation of registrant which is incorporated
herein by reference to Brown-Forman Corporation's 10-K filed on July 19,
1994.
3(b) Certificate of Amendment to Restated Certificate of Incorporation of
registrant which is incorporated herein by reference to Brown-Forman
Corporation's 10-K filed on July 19, 1994.
3(c) Certificate of Ownership and Merger of Brown-Forman Corporation into
Brown-Forman, Inc. which is incorporated herein by reference to Brown-
Forman Corporation's 10-K filed on July 19, 1994.
3(d) Certificate of Amendment to Restated and Amended Certificate of
Incorporation of Brown-Forman Corporation which is incorporated herein by
reference to Brown-Forman Corporation's 10-K filed on July 19, 1994.
3(e) The by-laws of registrant, as amended on May 25, 1988, which is
incorporated herein by reference to Brown-Forman Corporation's 10-K filed
on July 26, 1993.
4(b) The Form of Indenture dated as of March 1, 1994 between the company and
The First National Bank of Chicago, as Trustee, which is incorporated
herein by reference to Brown-Forman Corporation's Form S-3 (Registration
No. 33-52551) filed on March 8, 1994.
10(b) Brown-Forman Management Incentive Compensation Plan which is
incorporated herein by reference to Brown-Forman Corporation's 10-K filed
on July 19, 1994.
10(c) Brown-Forman Corporation Restricted Stock Plan which is incorporated
herein by reference to
Brown-Forman Corporation's 10-K filed on July 19, 1994.
10(d) Brown-Forman Corporation Supplemental Excess Retirement Plan, which is
incorporated herein by reference to Brown-Forman Corporation's 10-K filed
on July 23, 1990.
10(e) Brown-Forman Corporation Stock Appreciation Rights Plan, which is
incorporated herein by reference to Brown-Forman Corporation's 10-K filed
on July 23, 1990.
10(f) A description of the Brown-Forman Savings Plan is incorporated herein
by reference to page 10 of the registrant's definitive proxy statement
for the Annual Meeting of Stockholders to be held on July 27, 1995.
10(g) A description of the Brown-Forman Flexible Reimbursement Plan is
incorporated herein by reference to page 11 of the registrant's
definitive proxy statement for the Annual Meeting of Stockholders to be
held on July 27, 1995.
(b) No reports on Form 8-K were filed during the last quarter of the period
covered by this report.
-15-
SIGNATURES
Pursuant to the requirements of Section 13 or 15(d) 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)
/s/ Owsley Brown II
-------------------
Date: May 25, 1995 By: Owsley Brown II
President and Chief Executive Officer
Pursuant to the requirements of the Securities Exchange Act of 1934, this
report has been signed below by the following persons on behalf of the
registrant and in the capacities on May 25, 1995 as indicated:
/s/ Geo. Garvin Brown III /s/ W. L. Lyons Brown, Jr. /s/ Owsley Brown Frazier
- ------------------------- -------------------------- ------------------------
By: Geo. Garvin Brown III By: W. L. Lyons Brown, Jr. By: Owsley Brown Frazier
Director Director and Chairman Director, Vice Chairman
of the Board of the Board
/s/ Richard P. Mayer /s/ Stephen E. O'Neil /s/ John S. Speed
- -------------------- --------------------- -----------------
By: Richard P. Mayer By: Stephen E. O'Neil By: John S. Speed
Director Director Director
/s/ William M. Street /s/ James S. Welch /s/ Owsley Brown II
- -------------------- ------------------ -------------------
By: William M. Street By: James S. Welch By: Owsley Brown II
Director, Vice Chairman Director Director, President and
of the Board Chief Executive Officer
/s/ Steven B. Ratoff /s/ Charles E. Muntan
- -------------------- ---------------------
By: Steven B. Ratoff By: Charles E. Muntan
Executive Vice President and Vice President and
Chief Financial Officer Controller (Principal
(Principal Financial Officer) Accounting Officer)
-16-
REPORT OF INDEPENDENT ACCOUNTANTS
Brown-Forman Corporation
Louisville, Kentucky
We have audited the consolidated financial statements of Brown-Forman
Corporation and Subsidiaries as of April 30, 1995, 1994, and 1993, and for the
years then ended, which financial statements are included on pages 27 through 38
of the 1995 Annual Report to Stockholders of Brown-Forman Corporation and
incorporated by reference herein. We have also audited the financial statement
schedule listed in the index on page 14 of this Form 10-K. These financial
statements and financial statement schedule are the responsibility of the
company's management. Our responsibility is to express an opinion on these
financial statements and financial statement schedule based on our audits.
We conducted our audits in accordance with generally accepted auditing
standards. Those standards require that we plan and perform the audit to obtain
reasonable assurance about whether the financial statements are free of material
misstatement. An audit includes examining, on a test basis, evidence supporting
the amounts and disclosures in the financial statements. An audit also includes
assessing the accounting principles used and significant estimates made by
management, as well as evaluating the overall financial statement presentation.
We believe that our audits provide a reasonable basis for our opinion.
In our opinion, the financial statements referred to above present fairly, in
all material respects, the consolidated financial position of Brown-Forman
Corporation and Subsidiaries as of April 30, 1995, 1994, and 1993 and the
consolidated results of their operations and their cash flows for the years then
ended in conformity with generally accepted accounting principles. In addition,
in our opinion, the financial statement schedule referred to above, when
considered in relation to the basic financial statements taken as a whole,
present fairly, in all material respects, the information required to be
included therein.
As discussed in Notes 2 and 15 to the consolidated financial statements, in 1994
the company adopted changes in its methods of accounting for postretirement
benefits other than pensions, postemployment benefits, and contributions.
/s/ Coopers & Lybrand L.L.P.
Coopers & Lybrand L.L.P.
Louisville, Kentucky
June 8, 1995
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BROWN-FORMAN CORPORATION AND SUBSIDIARIES
SCHEDULE VIII - VALUATION AND QUALIFYING ACCOUNTS
For the Years Ended April 30, 1995, 1994, and 1993
(Expressed in thousands)
Col. A Col. B Col. C Col. D Col. E
------ ------ ------ ------ ------
Additions
---------
Balance at Charged to Balance at
Beginning Costs Charged to End
Description of Period and Expenses Other Accounts Deductions of Period
----------- --------- ------------ -------------- ---------- ----------
1995
Allowance for Doubtful Accounts $12,006 $ 9,343 $ -- $7,288/(2)/ $14,061
1994
Allowance for Doubtful Accounts $10,432 $10,538 $ -- $8,964/(2)/ $12,006
1993
Allowance for Doubtful Accounts $ 7,970 $ 8,889 $307/(1)/ $6,734/(2)/ $10,432
/(1)/ Relates to businesses acquired during the year.
/(2)/ Doubtful accounts written off, net of recoveries.
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