Cover Page
Cover Page - shares | 9 Months Ended | |
Mar. 31, 2021 | May 04, 2021 | |
Cover [Abstract] | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Mar. 31, 2021 | |
Document Transition Report | false | |
Entity File Number | 001-38932 | |
Entity Registrant Name | AMCOR PLC | |
Entity Incorporation, State or Country Code | Y9 | |
Entity Tax Identification Number | 98-1455367 | |
Entity Address, Address Line One | 83 Tower Road North | |
Entity Address, City or Town | Warmley, Bristol | |
Entity Address, Postal Zip Code | BS30 8XP | |
Entity Address, Country | GB | |
Country Region | 44 | |
City Area Code | 117 | |
Local Phone Number | 9753200 | |
Entity Information [Line Items] | ||
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Large Accelerated Filer | |
Entity Emerging Growth Company | false | |
Entity Small Business | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding | 1,541,792,948 | |
Entity Central Index Key | 0001748790 | |
Current Fiscal Year End Date | --06-30 | |
Document Fiscal Year Focus | 2021 | |
Document Fiscal Period Focus | Q3 | |
Amendment Flag | false | |
Ordinary Shares, Par Value $0.01 Per Share | ||
Entity Information [Line Items] | ||
Title of 12(b) Security | Ordinary Shares, Par Value $0.01 Per Share | |
Security Exchange Name | NYSE | |
Trading Symbol | AMCR | |
Trading Symbol | AMCR | |
1.125% Guaranteed Senior Notes Due 2027 | ||
Entity Information [Line Items] | ||
Title of 12(b) Security | 1.125% Guaranteed Senior Notes Due 2027 | |
Security Exchange Name | NYSE | |
Trading Symbol | AUKF/27 | |
Trading Symbol | AUKF/27 |
Condensed Consolidated Statemen
Condensed Consolidated Statement of Income - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | |||
Mar. 31, 2021 | Mar. 31, 2020 | Mar. 31, 2021 | Mar. 31, 2020 | ||
Income Statement [Abstract] | |||||
Net sales | $ 3,207 | $ 3,141 | $ 9,407 | $ 9,325 | |
Cost of sales | (2,525) | (2,489) | (7,420) | (7,509) | |
Gross profit | 682 | 652 | 1,987 | 1,816 | |
Operating expenses: | |||||
Selling, general and administrative expenses | (325) | (354) | (962) | (1,034) | |
Research and development expenses | (25) | (25) | (74) | (74) | |
Restructuring and related expenses, net | 24 | (20) | (22) | (62) | |
Other income, net | 17 | 18 | 27 | 38 | |
Operating income | 373 | 271 | 956 | 684 | |
Interest income | 3 | 5 | 10 | 18 | |
Interest expense | (36) | (46) | (113) | (158) | |
Other non-operating income, net | 1 | 6 | 7 | 18 | |
Income from continuing operations before income taxes and equity in income of affiliated companies | 341 | 236 | 860 | 562 | |
Income tax expense | (71) | (56) | (187) | (123) | |
Equity in income of affiliated companies, net of tax | 0 | 3 | 19 | 8 | |
Income from continuing operations | 270 | 183 | 692 | 447 | |
Loss from discontinued operations, net of tax | 0 | 0 | 0 | (8) | |
Net income | 270 | 183 | 692 | 439 | |
Net income attributable to non-controlling interests | (3) | (2) | (8) | (6) | |
Net income attributable to Amcor plc | $ 267 | $ 181 | $ 684 | $ 433 | |
Basic earnings per share: | |||||
Income from continuing operations | [1] | $ 0.173 | $ 0.114 | $ 0.439 | $ 0.274 |
Loss from discontinued operations | [1] | 0 | 0 | 0 | (0.005) |
Net income | [1] | 0.173 | 0.114 | 0.439 | 0.269 |
Diluted earnings per share: | |||||
Income from continuing operations | [1] | 0.173 | 0.114 | 0.438 | 0.273 |
Loss from discontinued operations | [1] | 0 | 0 | 0 | (0.005) |
Net income | [1] | $ 0.173 | $ 0.114 | $ 0.438 | $ 0.269 |
[1] | Per share amounts may not add due to rounding. |
Condensed Consolidated Statem_2
Condensed Consolidated Statement of Comprehensive Income - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Mar. 31, 2021 | Mar. 31, 2020 | Mar. 31, 2021 | Mar. 31, 2020 | |
Statement of Comprehensive Income [Abstract] | ||||
Net income | $ 270 | $ 183 | $ 692 | $ 439 |
Other comprehensive income (loss): | ||||
Net gains (losses) on cash flow hedges, net of tax (a) | 7 | (29) | 19 | (26) |
Foreign currency translation adjustments, net of tax (b) | (25) | (325) | 127 | (308) |
Net investment hedge of foreign operations, net of tax (c) | 0 | (2) | 0 | (4) |
Pension, net of tax (d) | 2 | 0 | 4 | 2 |
Other comprehensive income (loss) | (16) | (356) | 150 | (336) |
Total comprehensive income (loss) | 254 | (173) | 842 | 103 |
Comprehensive income attributable to non-controlling interest | (2) | (2) | (8) | (6) |
Comprehensive income (loss) attributable to Amcor plc | $ 252 | $ (175) | $ 834 | $ 97 |
Condensed Consolidated Statem_3
Condensed Consolidated Statement of Comprehensive Income (Parenthetical) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Mar. 31, 2021 | Mar. 31, 2020 | Mar. 31, 2021 | Mar. 31, 2020 | |
Statement of Comprehensive Income [Abstract] | ||||
(a) Tax benefit (expense) related to cash flow hedges | $ (2) | $ 2 | $ (4) | $ 1 |
(b) Tax benefit (expense) related to foreign currency translation adjustments | 0 | (8) | 8 | (8) |
(c) Tax benefit related to net investment hedge of foreign operations | 0 | 0 | 0 | 1 |
(d) Tax benefit related to pension adjustments | $ 0 | $ 0 | $ 0 | $ 0 |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheet - USD ($) $ in Millions | Mar. 31, 2021 | Jun. 30, 2020 |
Current assets: | ||
Cash and cash equivalents | $ 690 | $ 743 |
Trade receivables, net | 1,775 | 1,616 |
Inventories, net | 1,876 | 1,832 |
Prepaid expenses and other current assets | 429 | 344 |
Total current assets | 4,770 | 4,535 |
Non-current assets: | ||
Investments in affiliated companies | 0 | 78 |
Property, plant and equipment, net | 3,681 | 3,615 |
Operating lease assets | 517 | 525 |
Deferred tax assets | 140 | 135 |
Other intangible assets, net | 1,874 | 1,994 |
Goodwill | 5,393 | 5,339 |
Employee benefit assets | 49 | 44 |
Other non-current assets | 168 | 177 |
Total non-current assets | 11,822 | 11,907 |
Total assets | 16,592 | 16,442 |
Current liabilities: | ||
Current portion of long-term debt | 13 | 11 |
Short-term debt | 94 | 195 |
Trade payables | 1,986 | 2,171 |
Accrued employee costs | 457 | 477 |
Other current liabilities | 1,120 | 1,120 |
Total current liabilities | 3,670 | 3,974 |
Non-current liabilities: | ||
Long-term debt, less current portion | 6,497 | 6,028 |
Operating lease liabilities | 450 | 466 |
Operating lease liabilities | 662 | 672 |
Employee benefit obligations | 381 | 392 |
Other non-current liabilities | 227 | 223 |
Total non-current liabilities | 8,217 | 7,781 |
Total liabilities | 11,887 | 11,755 |
Commitments and contingencies (See Note 16) | ||
Amcor plc shareholders’ equity: | ||
Common stock | 15 | 16 |
Additional paid-in capital | 5,193 | 5,480 |
Retained earnings | 378 | 246 |
Accumulated other comprehensive loss | (899) | (1,049) |
Treasury stock | (40) | (67) |
Total Amcor plc shareholders' equity | 4,647 | 4,626 |
Non-controlling interest | 58 | 61 |
Total shareholders' equity | 4,705 | 4,687 |
Total liabilities and shareholders' equity | $ 16,592 | $ 16,442 |
Condensed Consolidated Balanc_2
Condensed Consolidated Balance Sheet (Parenthetical) - $ / shares | Mar. 31, 2021 | Jun. 30, 2020 |
Statement of Financial Position [Abstract] | ||
Ordinary shares, par value | $ 0.01 | $ 0.01 |
Ordinary shares authorized | 9,000,000,000 | 9,000,000,000 |
Ordinary shares issued | 1,541,800,000 | 1,568,500,000 |
Treasury shares | 4,000,000 | 6,700,000 |
Condensed Consolidated Statem_4
Condensed Consolidated Statement of Cash Flows - USD ($) $ in Millions | 9 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Cash flows from operating activities: | ||
Net income | $ 692 | $ 439 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Depreciation, amortization and impairment | 426 | 499 |
Net periodic benefit cost | 9 | 5 |
Amortization of debt discount and deferred financing costs | 7 | 4 |
Net gain on disposal of property, plant and equipment | (2) | (1) |
Net gain on disposal of businesses | (46) | 0 |
Equity in income of affiliated companies | (19) | (8) |
Net foreign exchange loss | 23 | 1 |
Share-based compensation | 44 | 24 |
Other, net | (25) | 39 |
Loss from hyperinflationary accounting for Argentine subsidiaries | 25 | 32 |
Deferred income taxes, net | (7) | (130) |
Dividends received from affiliated companies | 4 | 7 |
Changes in operating assets and liabilities, excluding effect of acquisitions, divestitures, and currency | (514) | (441) |
Net cash provided by operating activities | 617 | 470 |
Net cash provided by operating activities | ||
Purchase of property, plant and equipment and other intangible assets | (335) | (313) |
Proceeds from divestitures | 214 | 425 |
Proceeds from sales of property, plant and equipment and other intangible assets | 6 | 5 |
Net cash (used in) provided by investing activities | (115) | 117 |
Net cash (used in) provided by investing activities | ||
Proceeds from issuance of shares | 11 | 1 |
Purchase of treasury shares | 0 | (11) |
Proceeds from (purchase of) non-controlling interest | (7) | 5 |
Proceeds from issuance of long-term debt | 2 | 1,201 |
Repayment of long-term debt | (121) | (2,094) |
Net borrowing of commercial paper | 503 | 1,816 |
Net repayment of short-term debt | (122) | (455) |
Repayment of lease liabilities | (3) | (1) |
Share buyback/cancellations | (308) | (478) |
Dividends paid | (556) | (574) |
Net cash used in financing activities | (601) | (590) |
Effect of exchange rates on cash and cash equivalents | 46 | (61) |
Net decrease in cash and cash equivalents | (53) | (64) |
Cash and cash equivalents balance at beginning of year | 743 | 602 |
Cash and cash equivalents balance at end of period | 690 | 538 |
Interest paid, net of amounts capitalized | 90 | 134 |
Income taxes paid | 218 | 226 |
Supplemental non-cash disclosures relating to investing and financing activities: | ||
Purchase of property and equipment, accrued but unpaid | $ 62 | $ 60 |
Condensed Consolidated Statem_5
Condensed Consolidated Statement of Equity - USD ($) $ in Millions | Total | Cumulative adjustment related to adoption of ASC 842 and ASC 326 | [1] | Ordinary Shares | Additional Paid-In Capital | Retained Earnings | Retained EarningsCumulative adjustment related to adoption of ASC 842 and ASC 326 | [1] | Accumulated Other Comprehensive Loss | Treasury Shares | Non-controlling Interest | |
Beginning Balance at Jun. 30, 2019 | $ 5,675 | $ 16 | $ 6,008 | $ 324 | $ (722) | $ (16) | $ 65 | |||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||||||
Net income | 439 | 433 | 6 | |||||||||
Other comprehensive loss | (336) | (336) | ||||||||||
Share buyback/cancellations | (478) | 0 | (478) | |||||||||
Dividends declared | (574) | (561) | (13) | |||||||||
Options exercised and shares vested | 1 | (15) | 16 | |||||||||
Purchase of treasury shares | (11) | (11) | ||||||||||
Share-based compensation expense | 24 | 24 | ||||||||||
Change in non-controlling interest | 5 | 5 | ||||||||||
Ending Balance at Mar. 31, 2020 | 4,803 | $ 58 | 16 | 5,539 | 254 | $ 58 | (1,058) | (11) | 63 | |||
Beginning Balance at Dec. 31, 2019 | 5,404 | 16 | 5,783 | 255 | (702) | (11) | 63 | |||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||||||
Net income | 183 | 181 | 2 | |||||||||
Other comprehensive loss | (356) | (356) | ||||||||||
Share buyback/cancellations | (255) | (255) | ||||||||||
Dividends declared | (184) | (182) | (2) | |||||||||
Share-based compensation expense | 11 | 11 | ||||||||||
Ending Balance at Mar. 31, 2020 | $ 4,803 | 58 | 16 | 5,539 | 254 | 58 | (1,058) | (11) | 63 | |||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||||||
Cumulative adjustment related to adoption of ASC 842 and 326 | us-gaap:AccountingStandardsUpdate201602Member | |||||||||||
Beginning Balance at Jun. 30, 2020 | $ 4,687 | 16 | 5,480 | 246 | (1,049) | (67) | 61 | |||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||||||
Net income | 692 | 684 | 8 | |||||||||
Other comprehensive loss | 150 | 150 | ||||||||||
Share buyback/cancellations | (308) | (1) | (307) | |||||||||
Dividends declared | (556) | (547) | (9) | |||||||||
Options exercised and shares vested | 11 | (16) | 27 | |||||||||
Share-based compensation expense | 44 | 44 | ||||||||||
Change in non-controlling interest | (10) | (8) | (2) | |||||||||
Ending Balance at Mar. 31, 2021 | 4,705 | (5) | 15 | 5,193 | 378 | (5) | (899) | (40) | 58 | |||
Beginning Balance at Dec. 31, 2020 | 4,848 | 16 | 5,412 | 293 | (884) | (45) | 56 | |||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||||||
Net income | 270 | 267 | 3 | |||||||||
Other comprehensive loss | (16) | (15) | (1) | |||||||||
Share buyback/cancellations | (233) | (1) | (232) | |||||||||
Dividends declared | (182) | (182) | ||||||||||
Options exercised and shares vested | 2 | (3) | 5 | |||||||||
Share-based compensation expense | 16 | 16 | ||||||||||
Ending Balance at Mar. 31, 2021 | $ 4,705 | $ (5) | $ 15 | $ 5,193 | $ 378 | $ (5) | $ (899) | $ (40) | $ 58 | |||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||||||
Cumulative adjustment related to adoption of ASC 842 and 326 | [1] | us-gaap:AccountingStandardsUpdate201613Member | ||||||||||
[1] | Refer to Note 2, "New Accounting Guidance" for more information. |
Condensed Consolidated Statem_6
Condensed Consolidated Statement of Equity (Parenthetical) - $ / shares | 3 Months Ended | 9 Months Ended | ||
Mar. 31, 2021 | Mar. 31, 2020 | Mar. 31, 2021 | Mar. 31, 2020 | |
Statement of Stockholders' Equity [Abstract] | ||||
Dividends declared, per share | $ 0.1175 | $ 0.115 | $ 0.350 | $ 0.350 |
Nature of Operations and Basis
Nature of Operations and Basis of Presentation | 9 Months Ended |
Mar. 31, 2021 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Nature of Operations and Basis of Presentation | Nature of Operations and Basis of Presentation Amcor plc ("Amcor" or the "Company") is a global packaging company that employs approximately 47,000 people across approximately 230 principal manufacturing sites in more than 40 countries. The Company develops and produces a broad range of packaging products including flexible packaging and rigid packaging containers. The accompanying unaudited consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States ("U.S. GAAP") for interim financial information. Consistent with these requirements, this Form 10-Q does not include all the information required by U.S. GAAP for complete financial statements. It is management's opinion, however, that all material adjustments (consisting only of normal recurring accruals) have been made that are necessary for a fair statement of its interim financial position, results of operations and cash flows. For further information, this Form 10-Q should be read in conjunction with the audited Consolidated Financial Statements and accompanying Notes in the Company's Annual Report on Form 10-K for the fiscal year ended June 30, 2020. There have been no material changes in the accounting policies followed by the Company during the current fiscal year other than the adoption of a new accounting pronouncement discussed below. Certain amounts in the Company's notes to condensed consolidated financial statements may not add or recalculate due to rounding. |
New Accounting Guidance
New Accounting Guidance | 9 Months Ended |
Mar. 31, 2021 | |
Accounting Policies [Abstract] | |
New Accounting Guidance | New Accounting Guidance Recently Adopted Accounting Standards In June 2016, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update ("ASU") 2016-13, which is guidance requiring financial assets, or a group of financial assets measured at amortized cost basis to be presented at the net amount expected to be collected when finalized using a loss methodology known as the current expected credit loss methodology ("CECL"). The allowance for credit losses is a valuation account that will be deducted from the amortized cost basis of the financial asset to present the net carrying value at the amount expected to be collected on the financial asset. This updated guidance impacts loans, debt securities, trade receivables, net investments in leases, off-balance-sheet credit exposures, reinsurance receivables and any other financial assets not excluded from the scope that have the contractual right to receive cash. The guidance was effective for the Company on July 1, 2020 and was adopted using the modified retrospective approach. As a result, the Company changed its disclosures related to credit losses; refer to Note 9, "Trade Receivables, Net." The cumulative effect of the changes made to the Company's consolidated July 1, 2020 balance sheet related to the adoption of CECL is as follows: ($ in millions) June 30, 2020 Adjustments Due to Adoption July 1, 2020 Trade receivables, net $ 1,616 $ (7) $ 1,609 Deferred tax assets 135 2 137 Retained earnings 246 (5) 241 Accounting Standards Not Yet Adopted In December 2019, the FASB issued updated guidance to simplify the accounting for income taxes by removing certain exceptions and improving the consistent application of U.S. GAAP in other tax accounting areas. This guidance is effective for annual reporting periods, and any interim periods within those annual periods, that begin after December 15, 2020 with early adoption permitted. The Company is currently evaluating the effects adoption of this guidance will have on the consolidated financial statements and does not expect the adoption will be material to its consolidated financial statements and related disclosures when adopted on July 1, 2021. In March 2020, the FASB issued optional expedients and exceptions to ease the potential burden in accounting for reference rate reform related to contract modifications, hedging relationships, and other transactions that reference the London Interbank Offered Rate ("LIBOR") or another reference rate expected to be discontinued, subject to meeting certain criteria. The Company is currently evaluating its agreements and the optional expedients provided by the new standard. The Company considers the applicability and impact of all ASUs issued by the FASB. The Company determined that all other ASUs not yet adopted to be either not applicable or are expected to have minimal impact on the Company's consolidated financial statements at this time. |
Discontinued Operations
Discontinued Operations | 9 Months Ended |
Mar. 31, 2021 | |
Discontinued Operations and Disposal Groups [Abstract] | |
Discontinued Operations | Discontinued Operations On February 11, 2019, the Company received approval from the European Commission ("EC") for the acquisition of Bemis Company, Inc. ("Bemis"). A condition of the approval was an agreement to divest three Bemis medical packaging facilities located in the United Kingdom and Ireland ("EC Remedy"). Upon completion of the Bemis acquisition on June 11, 2019, the Company determined that the EC Remedy met the criteria to be classified as a discontinued operation, in accordance with ASC 205-20, "Discontinued Operations." The sale of the EC Remedy closed on August 8, 2019. The Company recorded a loss on the sale of $9 million, which is the result of the reclassification of accumulated foreign currency translation amounts from accumulated other comprehensive loss to earnings from discontinued operations upon sale of the EC Remedy. The following table summarizes the results of the Company's discontinued operations: Nine Months Ended March 31, ($ in millions) 2021 2020 Net sales $ — $ 16 Loss from discontinued operations — (7) Tax expense on discontinued operations — (1) Loss from discontinued operations, net of tax $ — $ (8) During the nine months ended March 31, 2021, th e Company disposed of an equity method investment and other non-core businesses. The Company completed the sale of the equity method investment in AMVIG on September 30, 2020, realizing a net gain of $15 million, which was recorded in the line equity in income of affiliated companies, net of tax. The Company also completed the disposal of two non-core businesses in India and Argentina in the Flexibles segment during the first quarter of fiscal 2021, recording a loss on sale of $6 million, which was primarily driven by the reclassification of cumulative translation adjustments through the income statements that had previously been recorded in other comprehensive income. During the three and nine months ended March 31, 2021, as part of optimizing its portfolio under the Bemis Integration restructuring plan, th e Company completed the disposal of a non-core European hospital supplies business which is part of the Flexibles reporting segment. The resulting gain from the sale has been recorded in the line restructuring and related expenses, net. Refer to Note 4, "Restructuring Plans." |
Restructuring Plans
Restructuring Plans | 9 Months Ended |
Mar. 31, 2021 | |
Restructuring and Related Activities [Abstract] | |
Restructuring Plans | Restructuring Plans 2019 Bemis Integration Plan In connection with the acquisition of Bemis, the Company initiated restructuring activities in the fourth quarter of 2019 aimed at integrating and optimizing the combined organization. As previously announced, the Company continues to target realizing approximately $180 million of pre-tax synergies driven by procurement, supply chain, and general and administrative savings by the end of fiscal year 2022. The Company's total 2019 Bemis Integration Plan pre-tax integration costs are expected to be approximately $200 million. The total 2019 Bemis Integration Plan costs include approximately $160 million of restructuring and related expenses, net, and $40 million of general integration expenses. The Company estimates that net cash expenditures including disposal proceeds will be approximately $150 million, of which $40 million relates to general integration expense. As of March 31, 2021, the Company has incurred $94 million in employee related expenses, $28 million in fixed asset related expenses, $19 million in other restructuring and $22 million in restructuring related expenses, partially offset by a gain on disposal of a business of $52 million. The nine months ended March 31, 2021 resulted in net cash inflows of $26 million, including $78 million of business disposal proceeds, offset by $52 million of cash outflows, of which $45 million were payments related to restructuring and related expenditures. Cash payments of approximately $20 million to $30 million are expected for the balance of the fiscal year for restructuring and related expenses. The 2019 Bemis Integration Plan relates to the Flexibles segment and Corporate and is expected to be substantially completed by the end of fiscal year 2022. Restructuring related costs are directly attributable to restructuring activities; however, they do not qualify for special accounting treatment as exit or disposal activities. General integration costs are not linked to restructuring. The Company believes the disclosure of restructuring related costs provides more information on the total cost of the 2019 Bemis Integration Plan. The restructuring related costs relate primarily to the closure of facilities and include costs to replace graphics, train new employees on relocated equipment and anticipated losses on sale of closed facilities. 2018 Rigid Packaging Restructuring Plan On August 21, 2018, the Company announced a restructuring plan in Amcor Rigid Packaging ("2018 Rigid Packaging Restructuring Plan") aimed at reducing structural costs and optimizing the footprint. The Plan includes the closures of manufacturing facilities and headcount reductions to achieve manufacturing footprint optimization and productivity improvements as well as overhead cost reductions. The Company's total 2018 Rigid Packaging Restructuring Plan pre-tax restructuring costs are expected to be approximately $120 million with the main component being the cost to exit manufacturing facilities and employee related costs. The Company estimates that approximately $75 million of the $120 million total costs will result in cash expenditures. Cash payments for the nine months ended March 31, 2021 were $17 million, with less than $5 million expected during the remainder of the fiscal year. The 2018 Rigid Packaging Restructuring Plan is expected to be substantially completed during fiscal year 2021. Other Restructuring Plans The Company has entered into other individually immaterial restructuring plans ("Other Restructuring Plans"). The Company's restructuring charge related to these plans was a gain of $4 million and a charge of $1 million for the three months ended March 31, 2021 and 2020, respectively, and charges of $5 million and $2 million for the nine months ended March 31, 2021 and 2020, respectively. The Company's total incurred restructuring charge for Other Restructuring Plans primarily relates to the Flexibles reporting segment. Consolidated Amcor Restructuring Plans The total costs incurred from the beginning of the Company's material restructuring plans are as follows: ($ in millions) 2018 Rigid Packaging Restructuring Plan 2019 Bemis Integration Plan Other Restructuring Plans Total Restructuring and Related Expenses (1) Fiscal year 2019 net charges to earnings $ 64 $ 48 $ 19 $ 131 Fiscal year 2020 net charges to earnings 37 60 18 115 Fiscal year 2021 first quarter net charges to earnings 8 6 9 23 Fiscal year 2021 second quarter net charges to earnings 2 21 — 23 Fiscal year 2021 third quarter net charges to earnings 4 (24) (4) (24) Expense incurred to date $ 115 $ 111 $ 42 $ 268 (1) Tot al restructuring and related expenses includes restructuring related costs from the 2019 Bemis Integration Plan o f $2 million, $15 million, $1 million, $4 million and $5 million for fiscal year 2019, fiscal year 2020, first quarter of fiscal year 2021, second quarter of fiscal year 2021 and third quarter of fiscal year 2021, respectively. An analysis of the restructuring charges by type incurred follows: Three Months Ended Nine Months Ended ($ in millions) March 31, 2021 March 31, 2020 March 31, 2021 March 31, 2020 Employee costs $ 8 $ 9 $ 33 $ 33 Fixed asset related costs 10 4 13 9 Other costs 5 5 18 13 Gain on sale of business (52) — (52) — Total restructuring costs, net $ (29) $ 18 $ 12 $ 55 An analysis of the Company's restructuring plan liability is as follows: ($ in millions) Employee Costs Fixed Asset Related Costs Other Costs Total Restructuring Costs Liability balance at June 30, 2020 $ 70 $ 3 $ 12 $ 85 Net charges to earnings 33 13 18 64 Cash paid (39) (5) (27) (71) Non-cash and other — (11) — (11) Foreign currency translation 2 — (2) — Liability balance at March 31, 2021 $ 66 $ — $ 1 $ 67 The costs related to restructuring activities have been presented on the unaudited condensed consolidated statements of income as restructuring and related expenses. The accruals related to restructuring activities have been recorded on the unaudited condensed consolidated balance sheets under other current liabilities and other non-current liabilities. |
Inventories, Net
Inventories, Net | 9 Months Ended |
Mar. 31, 2021 | |
Inventory Disclosure [Abstract] | |
Inventories, Net | Inventories, Net Inventories, net are summarized as follows: ($ in millions) March 31, 2021 June 30, 2020 Raw materials and supplies $ 818 $ 809 Work in process and finished goods 1,161 1,127 Less: inventory reserves (103) (104) Total inventories, net $ 1,876 $ 1,832 |
Goodwill and Other Intangible A
Goodwill and Other Intangible Assets | 9 Months Ended |
Mar. 31, 2021 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill and Other Intangible Assets | Goodwill and Other Intangible Assets, Net Goodwill Changes in the carrying amount of goodwill attributable to each reportable segment are as follows: ($ in millions) Flexibles Segment Rigid Packaging Segment Total Balance as of June 30, 2020 $ 4,369 $ 970 $ 5,339 Disposals (5) — (5) Currency translation 52 7 59 Balance as of March 31, 2021 $ 4,416 $ 977 $ 5,393 Other Intangible Assets, Net The components of intangible assets are as follows: March 31, 2021 ($ in millions) Gross Carrying Amount Accumulated Amortization and Impairment Net Carrying Amount Customer relationships $ 1,967 $ (362) $ 1,605 Computer software 221 (147) 74 Other (1) 325 (130) 195 Balance as of $ 2,513 $ (639) $ 1,874 June 30, 2020 ($ in millions) Gross Carrying Amount Accumulated Amortization and Impairment Net Carrying Amount Customer relationships $ 1,957 $ (264) $ 1,693 Computer software 218 (131) 87 Other (1) 321 (107) 214 Balance as of $ 2,496 $ (502) $ 1,994 (1) Other includes $16 million for March 31, 2021 and June 30, 2020, respectively, of acquired intellectual property assets not yet being amortized as the related R&D projects have not yet been completed and commercialized. Amortization expense for intangible assets during the three and nine months ended March 31, 2021 were $44 million and $134 million, respectively, and $47 million and $166 million, respectively, for the three and nine months ended March 31, 2020. |
Fair Value Measurements
Fair Value Measurements | 9 Months Ended |
Mar. 31, 2021 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements | Fair Value Measurements The fair values of the Company’s financial assets and financial liabilities listed below reflect the amounts that would be received to sell the assets or paid to transfer the liabilities in an orderly transaction between market participants at the measurement date (exit price). The Company’s non-derivative financial instruments primarily include cash and cash equivalents, trade receivables, trade payables, short-term debt and long-term debt. At March 31, 2021 and June 30, 2020, the carrying value of these financial instruments, excluding long-term debt, approximates fair value because of the short-term nature of these instruments. The fair value of long-term debt with variable interest rates approximates its carrying value. The fair value of the Company’s long-term debt with fixed interest rates is based on market prices, if available, or expected future cash flows discounted at the current interest rate for financial liabilities with similar risk profiles. The carrying values and estimated fair values of long-term debt with fixed interest rates (excluding capital leases) were as follows: March 31, 2021 June 30, 2020 Carrying Value Fair Value Carrying Value Fair Value ($ in millions) (Level 2) (Level 2) Total long-term debt with fixed interest rates (excluding commercial paper and finance leases) $ 3,516 $ 3,714 $ 3,599 $ 3,793 Assets and Liabilities Measured and Recorded at Fair Value on a Recurring Basis Additionally, the Company measures and records certain assets and liabilities, including derivative instruments and contingent purchase consideration liabilities, at fair value. The following tables summarize the fair value of these instruments, which are measured at fair value on a recurring basis, by level, within the fair value hierarchy: March 31, 2021 ($ in millions) Level 1 Level 2 Level 3 Total Assets Commodity contracts $ — $ 13 $ — $ 13 Forward exchange contracts — 13 — 13 Interest rate swaps — 19 — 19 Total assets measured at fair value $ — $ 45 $ — $ 45 Liabilities Contingent purchase consideration liabilities $ — $ — $ 19 $ 19 Forward exchange contracts — 8 — 8 Total liabilities measured at fair value $ — $ 8 $ 19 $ 27 June 30, 2020 ($ in millions) Level 1 Level 2 Level 3 Total Assets Forward exchange contracts $ — $ 8 $ — $ 8 Interest rate swaps — 32 — 32 Total assets measured at fair value $ — $ 40 $ — $ 40 Liabilities Contingent purchase consideration liabilities $ — $ — $ 15 $ 15 Commodity contracts — 7 — 7 Forward exchange contracts — 17 — 17 Total liabilities measured at fair value $ — $ 24 $ 15 $ 39 The fair value of the commodity contracts was determined using a discounted cash flow analysis based on the terms of the contracts and observed market forward prices discounted at a currency-specific rate. Forward exchange contract fair values were determined based on quoted prices for similar assets and liabilities in active markets using inputs such as currency rates and forward points. The fair value of the interest rate swaps was determined using a discounted cash flow method based on market-based swap yield curves, taking into account current interest rates. Contingent consideration obligations arise from business acquisitions. The Company's contingent consideration liabilities consist of an $11 million liability that is contingent on future royalty income generated by Discma AG, a subsidiary acquired in March 2017, with the $8 million balance relating to consideration for small business acquisitions where payments are contingent on the Company vacating a certain property or performance criteria. The fair value of the contingent purchase consideration liabilities was determined for each arrangement individually. The fair value was determined using the income approach with significant inputs that are not observable in the market. Key assumptions include the discount rates consistent with the level of risk of achievement and probability adjusted financial projections. The expected outcomes are recorded at net present value, which requires adjustment over the life for changes in risks and probabilities. Changes arising from modifications in forecasts related to contingent consideration are expected to be immaterial. The fair value of contingent purchase consideration liabilities is included in other current liabilities and other non-current liabilities in the unaudited condensed consolidated balance sheets. Assets and Liabilities Measured and Recorded at Fair Value on a Nonrecurring Basis In addition to assets and liabilities that are recorded at fair value on a recurring basis, the Company records assets and liabilities at fair value on a nonrecurring basis. The Company measures certain assets, including technology intangible assets, equity method and other investments and other intangible assets at fair value on a nonrecurring basis when they are deemed to be other than temporarily impaired. The fair values of these assets are determined, when applicable, based on valuation techniques using the best information available, and may include quoted market prices, market comparables and discounted cash flow projections. The Company sold its equity method investment in AMVIG Holdings Limited ("AMVIG") on September 30, 2020. Refer to Note 17, "Disposals." Similar to the manner in which it tests other intangible assets, the Company tests technology intangibles for impairment when facts and circumstances indicate the carrying value may not be recoverable from their future cash flows. During the three and nine months ended March 31, 2021 and 2020, there were no triggering events and therefore no technology intangible impairment charges recorded. |
Derivative Instruments
Derivative Instruments | 9 Months Ended |
Mar. 31, 2021 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Derivative Instruments | Derivative Instruments The Company periodically uses derivatives and other financial instruments to hedge exposures to interest rate, commodity and currency risks. The Company does not hold or issue financial instruments for speculative or trading purposes. For hedges that meet the hedge accounting criteria, the Company, at inception, formally designates and documents the instrument as a fair value hedge or a cash flow hedge of a specific underlying exposure. On an ongoing basis, the Company assesses and documents that its hedges have been and are expected to continue to be highly effective. Interest Rate Risk The Company’s policy is to manage exposure to interest rate risk by maintaining a mixture of fixed-rate and variable-rate debt, monitoring global interest rates and, where appropriate, hedging floating interest rate exposure or debt at fixed interest rates through various interest rate derivative instruments, including, but not limited to, interest rate swaps, cross-currency interest rate swaps, and interest rate locks. For interest rate swaps that are accounted for as fair value hedges, changes in the fair value of both the hedging instruments and the underlying debt obligations are immediately recognized in interest expense. Changes in the fair value of interest rate swaps that have not been designated as hedging instruments are reported in the accompanying unaudited condensed consolidated statements of income under other non-operating income, net. At March 31, 2021 and June 30, 2020, the Company had a notional amount of zero and $100 million cross-currency interest rate swaps outstanding, respectively. The Company did not designate the swaps as hedging instruments and thus changes in fair value were immediately recognized in earnings. As of March 31, 2021, and June 30, 2020, the total notional amount of the Company’s receive-fixed/pay-variable interest rate swaps accounted for as fair value hedges was $852 million and $837 million, respectively. Foreign Currency Risk The Company manufactures and sells its products and finances its operations in a number of countries throughout the world and, as a result, is exposed to movements in foreign currency exchange rates. The purpose of the Company’s foreign currency hedging program is to manage the volatility associated with the changes in exchange rates. To manage this exchange rate risk, the Company utilizes forward contracts. Contracts that qualify for hedge accounting are designated as cash flow hedges of certain forecasted transactions denominated in foreign currencies. The effective portion of the changes in fair value of these instruments is reported in accumulated other comprehensive loss ("AOCI") and reclassified into earnings in the same financial statement line item and in the same period or periods during which the related hedged transactions affect earnings. The ineffective portion is recognized in earnings over the life of the hedging relationship in the same unaudited condensed consolidated statements of income line item as the underlying hedged item. Changes in the fair value of forward contracts that have not been designated as hedging instruments are reported in the accompanying unaudited condensed consolidated statements of income. As of March 31, 2021, and June 30, 2020, the notional amount of the outstanding forward contracts was $1.1 billion and $1.6 billion, respectively. The Company manages its currency exposure related to the net assets of its foreign operations primarily through borrowings denominated in the relevant currency. Foreign currency gains and losses from the remeasurement of external borrowings designated as net investment hedges of a foreign operation are recognized in AOCI, to the extent that the hedge is effective. The ineffective portion is immediately recognized in other non-operating income, net in the unaudited condensed consolidated statements of income. When a hedged net investment is disposed of, a percentage of the cumulative amount recognized in AOCI in relation to the hedged net investment is recognized in the unaudited condensed consolidated statements of income as part of the profit or loss on disposal. Commodity Risk Certain raw materials used in the Company's production processes are subject to price volatility caused by weather, supply conditions, political and economic variables and other unpredictable factors. The Company's policy is to minimize exposure to price volatility by passing through the commodity price risk to customers, including through the use of fixed price swaps. The Company purchases on behalf of customers fixed price commodity swaps to offset the exposure of price volatility on the underlying sales contracts. These instruments are cash closed out on maturity and the related cost or benefit is passed through to customers. Information about commodity price exposure is derived from supply forecasts submitted by customers and these exposures are hedged by a central treasury unit. Changes in the fair value of commodity hedges are recognized in AOCI. The cumulative amount of the hedge is recognized in the unaudited condensed consolidated statements of income when the forecasted transaction is realized. At March 31, 2021 and June 30, 2020, the Company had the following outstanding commodity contracts to hedge forecasted purchases: March 31, 2021 June 30, 2020 Commodity Volume Volume Aluminum 29,793 tons 44,944 tons PET resin 14,813,550 lbs. 26,006,000 lbs. The following tables provide the location of derivative instruments in the unaudited condensed consolidated balance sheets: ($ in millions) Balance Sheet Location March 31, 2021 June 30, 2020 Assets Derivatives in cash flow hedging relationships: Commodity contracts Other current assets $ 13 $ — Forward exchange contracts Other current assets 3 2 Derivatives in fair value hedging relationships: Interest rate swaps Other current assets 4 — Derivatives not designated as hedging instruments: Forward exchange contracts Other current assets 10 6 Total current derivative contracts 30 8 Derivatives in fair value hedging relationships: Interest rate swaps Other non-current assets 15 32 Total non-current derivative contracts 15 32 Total derivative asset contracts $ 45 $ 40 Liabilities Derivatives in cash flow hedging relationships: Commodity contracts Other current liabilities $ — $ 7 Forward exchange contracts Other current liabilities 4 3 Derivatives not designated as hedging instruments: Forward exchange contracts Other current liabilities 4 14 Total current derivative contracts 8 24 Total non-current derivative contracts — — Total derivative liability contracts $ 8 $ 24 Certain derivative financial instruments are subject to master netting arrangements and are eligible for offset. The Company has made an accounting policy election not to offset the fair values of these instruments within the unaudited condensed consolidated balance sheets. The following tables provide the effects of derivative instruments on AOCI and in the unaudited condensed consolidated statements of income: Location of Gain (Loss) Reclassified from AOCI into Income (Effective Portion) Gain (Loss) Reclassified from AOCI into Income (Effective Portion) Three Months Ended March 31, Nine Months Ended March 31, ($ in millions) 2021 2020 2021 2020 Derivatives in cash flow hedging relationships Commodity contracts Cost of sales $ 1 $ (1) $ (3) $ (4) Forward exchange contracts Net sales — — — (1) Treasury locks Interest expense (1) — (2) — Total $ — $ (1) $ (5) $ (5) Location of Gain (Loss) Recognized in the Unaudited Condensed Consolidated Statements of Income Gain (Loss) Recognized in Income for Derivatives Not Designated as Hedging Instruments Three Months Ended March 31, Nine Months Ended March 31, ($ in millions) 2021 2020 2021 2020 Derivatives not designated as hedging instruments Forward exchange contracts Other income, net $ 3 $ (4) $ 16 $ (4) Cross currency interest rate swaps Other income, net — 2 (4) 2 Total $ 3 $ (2) $ 12 $ (2) Location of Gain (Loss) Recognized in the Unaudited Condensed Consolidated Statements of Income Gain (Loss) Recognized in Income for Derivatives in Fair Value Hedging Relationships Three Months Ended March 31, Nine Months Ended March 31, ($ in millions) 2021 2020 2021 2020 Derivatives in fair value hedging relationships Interest rate swaps Interest expense $ (5) $ 8 $ (14) $ 2 Total $ (5) $ 8 $ (14) $ 2 |
Trade Receivables, Net
Trade Receivables, Net | 9 Months Ended |
Mar. 31, 2021 | |
Receivables [Abstract] | |
Trade Receivables, Net | Trade Receivables, Net Trade receivables, net is summarized as follows: ($ in millions) March 31, 2021 June 30, 2020 Trade receivables, gross $ 1,804 $ 1,651 Less: Allowance for doubtful accounts (29) (35) Trade receivables, net $ 1,775 $ 1,616 Allowance for Doubtful Accounts The changes in allowance for doubtful accounts, including expected credit losses, during the nine months ended March 31, 2021 and 2020 were as follows: Nine Months Ended March 31, ($ in millions) 2021 2020 Balance as of June 30 $ (35) $ (34) Impact of adoption of ASU 2016-13 (7) — Recoveries/(charges) to income 3 (6) Write-offs 10 — Foreign currency and other — 3 Balance as of March 31 $ (29) $ (37) (1) Refer to Note 2, "New Accounting Guidance" for more information. The Company determines its allowance for doubtful accounts using a combination of factors, including customer creditworthiness, past transaction history with the customer and changes in customer payment terms or practices. In addition, overall historical collection experience, current economic industry trends and a review of the current status of trade accounts receivable are considered when determining the required allowance for doubtful accounts. |
Components of Net Periodic Bene
Components of Net Periodic Benefit Cost | 9 Months Ended |
Mar. 31, 2021 | |
Retirement Benefits [Abstract] | |
Components of Net Periodic Benefit Cost | Components of Net Periodic Benefit Cost Net periodic benefit cost for benefit plans includes the following components: Three Months Ended March 31, Nine Months Ended March 31, ($ in millions) 2021 2020 2021 2020 Service cost $ 7 $ 7 $ 19 $ 19 Interest cost 9 12 29 37 Expected return on plan assets (14) (18) (44) (54) Amortization of actuarial loss 2 1 6 4 Amortization of prior service credit (1) — (1) (1) Net periodic benefit cost $ 3 $ 2 $ 9 $ 5 Service cost is included in operating income. All other components of net periodic benefit cost other than service cost are recorded within other non-operating income, net. |
Debt
Debt | 9 Months Ended |
Mar. 31, 2021 | |
Debt Disclosure [Abstract] | |
Debt Disclosure | DebtOn March 30, 2021, the Company amended its three four |
Income Taxes
Income Taxes | 9 Months Ended |
Mar. 31, 2021 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes The provision for income taxes for the three and nine months ended March 31, 2021 and 2020 is based on the Company’s estimated annual effective tax rate for the respective fiscal years before income taxes and equity in income of affiliated companies and adjusted for specific items that are required to be recognized in the period in which they are incurred. Income tax expense for the three and nine months ended March 31, 2021 is $71 million and $187 million, respectively, compared to $56 million and $123 million for the three and nine months ended March 31, 2020, respectively. |
Shareholders' Equity
Shareholders' Equity | 9 Months Ended |
Mar. 31, 2021 | |
Equity [Abstract] | |
Stockholders' Equity | Shareholders' Equity The changes in ordinary and treasury shares during the nine months ended March 31, 2021 and 2020 were as follows: Ordinary Shares Treasury Shares (shares and $ in millions) Number of Shares Amount Number of Shares Amount Balance as of June 30, 2019 1,626 $ 16 1 $ (16) Share buy-back/cancellations (52) — — — Options exercised and shares vested — — (1) 16 Purchase of treasury shares — — 1 (11) Balance as of March 31, 2020 1,574 $ 16 1 $ (11) Balance as of June 30, 2020 1,569 $ 16 7 $ (67) Share buy-back/cancellations (27) (1) Options exercised and shares vested — — (3) 27 Balance as of March 31, 2021 1,542 $ 15 4 $ (40) The changes in the components of accumulated other comprehensive loss during the nine months ended March 31, 2021 and 2020 were as follows: Foreign Currency Translation Net Investment Hedge Pension Effective Derivatives Total Accumulated Other Comprehensive Loss ($ in millions) (Net of Tax) (Net of Tax) (Net of Tax) (Net of Tax) Balance as of June 30, 2019 $ (609) $ (11) $ (90) $ (12) $ (722) Other comprehensive income (loss) before reclassifications (317) (4) (1) (30) (352) Amounts reclassified from accumulated other comprehensive loss 9 — 3 4 16 Net current period other comprehensive income (loss) (308) (4) 2 (26) (336) Balance as of March 31, 2020 $ (917) $ (15) $ (88) $ (38) $ (1,058) Balance as of June 30, 2020 $ (896) $ (14) $ (106) $ (34) $ (1,049) Other comprehensive income (loss) before reclassifications 101 — (1) 15 115 Amounts reclassified from accumulated other comprehensive loss 26 — 5 4 35 Net current period other comprehensive income (loss) 127 — 4 19 150 Balance as of March 31, 2021 $ (769) $ (14) $ (102) $ (15) $ (899) The following tables provide details of amounts reclassified from accumulated other comprehensive loss: Three Months Ended March 31, Nine Months Ended March 31, ($ in millions) 2021 2020 2021 2020 Amortization of pension: Amortization of prior service credit $ (1) $ — $ (1) $ (1) Amortization of actuarial loss 2 1 6 4 Total before tax effect 1 1 5 3 Tax benefit on amounts reclassified into earnings — — — — Total net of tax $ 1 $ 1 $ 5 $ 3 (Gains) losses on cash flow hedges: Commodity contracts $ (1) $ 1 $ 3 $ 4 Forward exchange contracts — — — 1 Treasury locks 1 — 2 — Total before tax effect — 1 5 5 Tax benefit on amounts reclassified into earnings — — (1) (1) Total net of tax $ — $ 1 $ 4 $ 4 (Gains) losses on foreign currency translation: Foreign currency translation adjustment (1) $ 1 $ — $ 26 $ 9 Total before tax effect 1 — 26 9 Tax benefit on amounts reclassified into earnings — — — — Total net of tax $ 1 $ — $ 26 $ 9 (1) During the nine months ended March 31, 2021, the Company recorded a gain on disposal of AMVIG and other non-core businesses. Upon completion of the sales, $26 million of accumulated foreign currency translation was transferred from accumulated other comprehensive income to earnings. Refer to Note 17, "Disposals" for more information on disposals. During the nine months ended March 31, 2020, the Company recorded a loss on the sale of the EC Remedy of $9 million, which is the result of the reclassification of accumulated foreign currency translation amounts from accumulated other comprehensive loss to earnings. Refer to Note 3, "Discontinued Operations" for more information on the sale of the EC Remedy. |
Segments
Segments | 9 Months Ended |
Mar. 31, 2021 | |
Segment Reporting [Abstract] | |
Segments | Segments The Company's business is organized and presented in the two reportable segments outlined below: Flexibles: Consists of operations that manufacture flexible and film packaging in the food and beverage, medical and pharmaceutical, fresh produce, snack food, personal care, and other industries. Rigid Packaging: Consists of operations that manufacture rigid containers for a broad range of predominantly beverage and food products, including carbonated soft drinks, water, juices, sports drinks, milk-based beverages, spirits and beer, sauces, dressings, spreads and personal care items and plastic caps for a wide variety of applications. Other consists of the Company's undistributed corporate expenses including executive and functional compensation costs, equity method investments, intercompany eliminations and other business activities. The accounting policies of the reportable segments are the same as those in the consolidated financial statements. During the first quarter of fiscal 2021, the Company revised the presentation of adjusted earnings before interest and tax ("Adjusted EBIT") from continuing operations in the reportable segments to include an allocation of certain research and development and selling, general and administrative expenses that management previously reflected in Other. The Company refines its expense allocation methodologies to the reportable segments periodically as more relevant information becomes available and to align with industry or market changes. Corporate expenses are allocated to the reportable segments based primarily on direct attribution. Prior periods have been recast to conform to the new cost allocation methodology. The following table presents information about reportable segments: Three Months Ended March 31, Nine Months Ended March 31, ($ in millions) 2021 2020 2021 2020 Sales including intersegment sales Flexibles $ 2,500 $ 2,434 $ 7,350 $ 7,280 Rigid Packaging 707 707 2,059 2,047 Total sales including intersegment sales 3,207 3,141 9,409 9,327 Intersegment sales Flexibles — — 2 2 Rigid Packaging — — — — Total intersegment sales — — 2 2 Net sales $ 3,207 $ 3,141 $ 9,407 $ 9,325 Adjusted EBIT from continuing operations Flexibles $ 352 $ 317 $ 1,005 $ 919 Rigid Packaging 75 70 209 197 Other (25) (27) (70) (57) Adjusted EBIT from continuing operations 402 360 1,144 1,059 Less: Material restructuring programs (1) 23 (19) (16) (60) Less: Material acquisition costs and other (2) (4) (15) (17) (116) Less: Amortization of acquired intangible assets from business combinations (3) (40) (41) (121) (150) Less: Impact of hyperinflation (4) (7) (5) (17) (23) Add: Net gain on disposals (5) — — 9 — EBIT from continuing operations 374 280 982 710 Interest income 3 5 10 18 Interest expense (36) (46) (113) (158) Equity in income of affiliated companies, net of tax — (3) (19) (8) Income from continuing operations before income taxes and equity in income of affiliated companies $ 341 $ 236 $ 860 $ 562 (1) Material restructuring programs includes restructuring and related expenses for the 2018 Rigid Packaging Restructuring Plan and the 2019 Bemis Integration Plan for the three and nine months ended March 31, 2021 and 2020. Refer to Note 4, "Restructuring Plans," for more information about the Company's restructuring plans. (2) Material acquisition costs and other includes Bemis transaction related costs and integration costs not qualifying as exit costs for the nine months ended March 31, 2021. Material acquisition costs and other for the nine months ended March 31, 2020 includes $58 million amortization of Bemis acquisition related inventory fair value step-up and $58 million of Bemis transaction related costs and integration costs not qualifying as exit costs. (3) Amortization of acquired intangible assets from business combinations includes amortization expenses related to all acquired intangible assets from acquisitions impacting the periods presented, including $26 million of sales backlog amortization for the nine months ended March 31, 2020 from the Bemis acquisition. (4) Impact of hyperinflation includes the adverse impact of highly inflationary accounting for subsidiaries in Argentina where the functional currency was the Argentine Peso. (5) Net gain on disposals includes the gain realized upon the disposal of AMVIG and the loss upon disposal of other non-core businesses not part of material restructuring programs. Refer to Note 17, "Disposals" for more information about the Company's disposals. The following tables disaggregates sales, excluding intersegment sales, information by geography in which the Company operates based on manufacturing or selling operation: Net Sales Three Months Ended March 31, 2021 2020 ($ in millions) Flexibles Rigid Packaging Total Flexibles Rigid Packaging Total North America $ 933 $ 575 $ 1,508 $ 924 $ 577 $ 1,501 Latin America 222 132 354 232 130 362 Europe 953 — 953 928 — 928 Asia Pacific 392 — 392 350 — 350 Net sales $ 2,500 $ 707 $ 3,207 $ 2,434 $ 707 $ 3,141 Net Sales Nine Months Ended March 31, 2021 2020 ($ in millions) Flexibles Rigid Packaging Total Flexibles Rigid Packaging Total North America $ 2,727 $ 1,685 $ 4,412 $ 2,710 $ 1,646 $ 4,356 Latin America 668 374 1,042 744 401 1,145 Europe 2,785 — 2,785 2,718 — 2,718 Asia Pacific 1,168 — 1,168 1,106 — 1,106 Net sales $ 7,348 $ 2,059 $ 9,407 $ 7,278 $ 2,047 $ 9,325 |
Earnings Per Share Computations
Earnings Per Share Computations | 9 Months Ended |
Mar. 31, 2021 | |
Earnings Per Share [Abstract] | |
Earnings Per Share Computations | Earnings Per Share Computations The Company applies the two-class method when computing its earnings per share ("EPS"), which requires that net income per share for each class of share be calculated assuming all of the Company's net income is distributed as dividends to each class of share based on their contractual rights. Basic EPS is computed by dividing net income available to ordinary shareholders by the weighted-average number of ordinary shares outstanding after excluding the ordinary shares to be repurchased using forward contracts. Diluted EPS includes the effects of share options, restricted shares, performance rights, performance shares and share rights, if dilutive. Three Months Ended March 31, Nine Months Ended March 31, (in millions, except per share amounts) 2021 2020 2021 2020 Numerator Net income attributable to Amcor plc $ 267 $ 181 $ 684 $ 433 Distributed and undistributed earnings attributable to shares to be repurchased — — (1) — Net income available to ordinary shareholders of Amcor plc—basic and diluted $ 267 $ 181 $ 683 $ 433 Net income available to ordinary shareholders of Amcor plc from continuing operations—basic and diluted $ 267 $ 181 $ 683 $ 441 Net income available to ordinary shareholders of Amcor plc from discontinued operations—basic and diluted $ — $ — $ — $ (8) Denominator Weighted-average ordinary shares outstanding 1,550.8 1,594.7 1,558.4 1,610.7 Weighted-average ordinary shares to be repurchased by Amcor plc (2.0) (1.0) (2.0) (1.0) Weighted-average ordinary shares outstanding for EPS—basic 1,548.8 1,593.7 1,556.4 1,609.7 Effect of dilutive shares 1.5 1.0 5.4 1.5 Weighted-average ordinary shares outstanding for EPS—diluted 1,550.3 1,594.7 1,561.8 1,611.2 Per ordinary share income Income from continuing operations $ 0.173 $ 0.114 $ 0.439 $ 0.274 Income from discontinued operations — — — (0.005) Basic earnings per ordinary share $ 0.173 $ 0.114 $ 0.439 $ 0.269 Income from continuing operations $ 0.173 $ 0.114 $ 0.438 $ 0.273 Income from discontinued operations — — — (0.005) Diluted earnings per ordinary share $ 0.173 $ 0.114 $ 0.438 $ 0.269 Note: Per share amounts are computed independently for each of the quarters presented. The sum of the quarters may not equal the total year amount due to the impact of changes in average quarterly shares outstanding and all other quarterly amounts may not equal the total year due to rounding. Certain outstanding share options were excluded from the diluted earnings per share calculation because they were anti-dilutive. The excluded share options for the three and nine months ended March 31, 2021, represented an aggregate of 1.8 million and 8.2 million shares, respectively. The excluded share options for the three and nine months ended March 31, 2020, represented an aggregate of 53.6 million and 31.4 million shares, respectively. |
Contingencies and Legal Proceed
Contingencies and Legal Proceedings | 9 Months Ended |
Mar. 31, 2021 | |
Commitments and Contingencies Disclosure [Abstract] | |
Contingencies and Legal Proceedings | Contingencies and Legal Proceedings Contingencies - Brazil The Company's operations in Brazil are involved in various governmental assessments and litigation, principally related to claims for excise and income taxes. The Company vigorously defends its positions and believes it will prevail on most, if not all, of these matters. The Company does not believe that the ultimate resolution of these matters will materially impact the Company's consolidated results of operations, financial position or cash flows. Under customary local regulations, the Company's Brazilian subsidiaries may need to post cash or other collateral if a challenge to any administrative assessment proceeds to the Brazilian court system; however, the level of cash or collateral already pledged or potentially required to be pledged would not significantly impact the Company's liquidit y. At March 31, 2021 and June 30, 2020, the Company has recorded accruals of $11 million and $12 million, respectively, included in other non-current liabilities in the unaudited condensed consolidated balance sheets, and has estimated a reasonably possible loss exposure in excess of the accrual of $18 million at March 31, 2021 and June 30, 2020, respectively. The litigation process is subject to many uncertainties and the outcome of individual matters cannot be accurately predicted. The Company routinel y assesses these matters as to probability of ultimately incurring a liability and records the best estimate of the ultimate loss in situations where the likelihood of an ultimate loss is probable. The Company's assessments are based on its knowledge and experience, but the ultimate outcome of any of these matters may differ from the Company's estimates. As of March 31, 2021, Amcor has provided letters of credit of $32 million, judicial insurance of $1 million, and deposited cash of $10 million with the courts to continue to defend the cases. Contingencies - Environmental Matters The Company, along with others, has been identified as a potentially responsible party ("PRP") at several waste disposal sites under U.S. federal and related state environmental statutes and regulations and may face potentially material environmental remediation obligations. While the Company benefits from various forms of insurance policies, actual coverage may not, or only partially, cover the total potential exposures. The Company has recorded $17 million aggregate accruals for its share of estimated future remediation costs at these sites. In addition to the matters described above, the Company has also recorded aggregate accruals of $50 million for potential liabilities for remediation obligations at various worldwide locations that are owned or operated by the Company, or were formerly owned or operated. While the Company believes that its accruals are adequate to cover its future obligations, there can be no assurance that the ultimate payments will not exceed the accrued amounts. Nevertheless, based on the available information, the Company does not believe that its potential environmental obligations will have a material adverse effect upon its liquidity, results of operations or financial condition. Other Matters In the normal course of business, the Company is subject to legal proceedings, lawsuits and other claims. While the potential financial impact with respect to these ordinary course matters is subject to many factors and uncertainties, management believes that any financial impact to the Company from these matters, individually and in the aggregate, would not have a material adverse effect on the Company's financial position or results of operation. |
Disposals
Disposals | 9 Months Ended |
Mar. 31, 2021 | |
Discontinued Operations and Disposal Groups [Abstract] | |
Disposals | Discontinued Operations On February 11, 2019, the Company received approval from the European Commission ("EC") for the acquisition of Bemis Company, Inc. ("Bemis"). A condition of the approval was an agreement to divest three Bemis medical packaging facilities located in the United Kingdom and Ireland ("EC Remedy"). Upon completion of the Bemis acquisition on June 11, 2019, the Company determined that the EC Remedy met the criteria to be classified as a discontinued operation, in accordance with ASC 205-20, "Discontinued Operations." The sale of the EC Remedy closed on August 8, 2019. The Company recorded a loss on the sale of $9 million, which is the result of the reclassification of accumulated foreign currency translation amounts from accumulated other comprehensive loss to earnings from discontinued operations upon sale of the EC Remedy. The following table summarizes the results of the Company's discontinued operations: Nine Months Ended March 31, ($ in millions) 2021 2020 Net sales $ — $ 16 Loss from discontinued operations — (7) Tax expense on discontinued operations — (1) Loss from discontinued operations, net of tax $ — $ (8) During the nine months ended March 31, 2021, th e Company disposed of an equity method investment and other non-core businesses. The Company completed the sale of the equity method investment in AMVIG on September 30, 2020, realizing a net gain of $15 million, which was recorded in the line equity in income of affiliated companies, net of tax. The Company also completed the disposal of two non-core businesses in India and Argentina in the Flexibles segment during the first quarter of fiscal 2021, recording a loss on sale of $6 million, which was primarily driven by the reclassification of cumulative translation adjustments through the income statements that had previously been recorded in other comprehensive income. During the three and nine months ended March 31, 2021, as part of optimizing its portfolio under the Bemis Integration restructuring plan, th e Company completed the disposal of a non-core European hospital supplies business which is part of the Flexibles reporting segment. The resulting gain from the sale has been recorded in the line restructuring and related expenses, net. Refer to Note 4, "Restructuring Plans." |
Subsequent Events
Subsequent Events | 9 Months Ended |
Mar. 31, 2021 | |
Subsequent Events [Abstract] | |
Subsequent Events | Subsequent Events On May 4, 2021, the Company's Board of Directors declared a quarterly cash dividend of $0.1175 per share to be paid on June 15, 2021 to shareholders of record as of May 26, 2021. Amcor has received a waiver from the Australian Securities Exchange ("ASX") settlement operating rules, which will allow Amcor to defer processing conversions between ordinary share and CHESS Depositary Instrument ("CDI") registers from May 25, 2021 to May 26, 2021, inclusive. |
New Accounting Guidance (Polici
New Accounting Guidance (Policies) | 9 Months Ended |
Mar. 31, 2021 | |
Accounting Policies [Abstract] | |
Basis of Accounting | The accompanying unaudited consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States ("U.S. GAAP") for interim financial information. Consistent with these requirements, this Form 10-Q does not include all the information required by U.S. GAAP for complete financial statements. It is management's opinion, however, that all material adjustments (consisting only of normal recurring accruals) have been made that are necessary for a fair statement of its interim financial position, results of operations and cash flows. For further information, this Form 10-Q should be read in conjunction with the audited Consolidated Financial Statements and accompanying Notes in the Company's Annual Report on Form 10-K for the fiscal year ended June 30, 2020. There have been no material changes in the accounting policies followed by the Company during the current fiscal year other than the adoption of a new accounting pronouncement discussed below. |
Reclassifications | Certain amounts in the Company's notes to condensed consolidated financial statements may not add or recalculate due to rounding. |
Recently Adopted Accounting Standards and Accounting Standards Not Yet Adopted | Recently Adopted Accounting Standards In June 2016, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update ("ASU") 2016-13, which is guidance requiring financial assets, or a group of financial assets measured at amortized cost basis to be presented at the net amount expected to be collected when finalized using a loss methodology known as the current expected credit loss methodology ("CECL"). The allowance for credit losses is a valuation account that will be deducted from the amortized cost basis of the financial asset to present the net carrying value at the amount expected to be collected on the financial asset. This updated guidance impacts loans, debt securities, trade receivables, net investments in leases, off-balance-sheet credit exposures, reinsurance receivables and any other financial assets not excluded from the scope that have the contractual right to receive cash. The guidance was effective for the Company on July 1, 2020 and was adopted using the modified retrospective approach. As a result, the Company changed its disclosures related to credit losses; refer to Note 9, "Trade Receivables, Net." The cumulative effect of the changes made to the Company's consolidated July 1, 2020 balance sheet related to the adoption of CECL is as follows: ($ in millions) June 30, 2020 Adjustments Due to Adoption July 1, 2020 Trade receivables, net $ 1,616 $ (7) $ 1,609 Deferred tax assets 135 2 137 Retained earnings 246 (5) 241 Accounting Standards Not Yet Adopted In December 2019, the FASB issued updated guidance to simplify the accounting for income taxes by removing certain exceptions and improving the consistent application of U.S. GAAP in other tax accounting areas. This guidance is effective for annual reporting periods, and any interim periods within those annual periods, that begin after December 15, 2020 with early adoption permitted. The Company is currently evaluating the effects adoption of this guidance will have on the consolidated financial statements and does not expect the adoption will be material to its consolidated financial statements and related disclosures when adopted on July 1, 2021. In March 2020, the FASB issued optional expedients and exceptions to ease the potential burden in accounting for reference rate reform related to contract modifications, hedging relationships, and other transactions that reference the London Interbank Offered Rate ("LIBOR") or another reference rate expected to be discontinued, subject to meeting certain criteria. The Company is currently evaluating its agreements and the optional expedients provided by the new standard. The Company considers the applicability and impact of all ASUs issued by the FASB. The Company determined that all other ASUs not yet adopted to be either not applicable or are expected to have minimal impact on the Company's consolidated financial statements at this time. |
Restructuring | Restructuring related costs are directly attributable to restructuring activities; however, they do not qualify for special accounting treatment as exit or disposal activities. General integration costs are not linked to restructuring. The Company believes the disclosure of restructuring related costs provides more information on the total cost of the 2019 Bemis Integration Plan. The restructuring related costs relate primarily to the closure of facilities and include costs to replace graphics, train new employees on relocated equipment and anticipated losses on sale of closed facilitiesThe costs related to restructuring activities have been presented on the unaudited condensed consolidated statements of income as restructuring and related expenses. The accruals related to restructuring activities have been recorded on the unaudited condensed consolidated balance sheets under other current liabilities and other non-current liabilities. |
Fair Value Measurements | Fair Value Measurements The fair values of the Company’s financial assets and financial liabilities listed below reflect the amounts that would be received to sell the assets or paid to transfer the liabilities in an orderly transaction between market participants at the measurement date (exit price). The Company’s non-derivative financial instruments primarily include cash and cash equivalents, trade receivables, trade payables, short-term debt and long-term debt. At March 31, 2021 and June 30, 2020, the carrying value of these financial instruments, excluding long-term debt, approximates fair value because of the short-term nature of these instruments. The fair value of long-term debt with variable interest rates approximates its carrying value. The fair value of the Company’s long-term debt with fixed interest rates is based on market prices, if available, or expected future cash flows discounted at the current interest rate for financial liabilities with similar risk profiles. Contingent consideration obligations arise from business acquisitions. The Company's contingent consideration liabilities consist of an $11 million liability that is contingent on future royalty income generated by Discma AG, a subsidiary acquired in March 2017, with the $8 million balance relating to consideration for small business acquisitions where payments are contingent on the Company vacating a certain property or performance criteria. The fair value of the contingent purchase consideration liabilities was determined for each arrangement individually. The fair value was determined using the income approach with significant inputs that are not observable in the market. Key assumptions include the discount rates consistent with the level of risk of achievement and probability adjusted financial projections. The expected outcomes are recorded at net present value, which requires adjustment over the life for changes in risks and probabilities. Changes arising from modifications in forecasts related to contingent consideration are expected to be immaterial. The fair value of contingent purchase consideration liabilities is included in other current liabilities and other non-current liabilities in the unaudited condensed consolidated balance sheets. Assets and Liabilities Measured and Recorded at Fair Value on a Nonrecurring Basis In addition to assets and liabilities that are recorded at fair value on a recurring basis, the Company records assets and liabilities at fair value on a nonrecurring basis. The Company measures certain assets, including technology intangible assets, equity method and other investments and other intangible assets at fair value on a nonrecurring basis when they are deemed to be other than temporarily impaired. The fair values of these assets are determined, when applicable, based on valuation techniques using the best information available, and may include quoted market prices, market comparables and discounted cash flow projections. The Company sold its equity method investment in AMVIG Holdings Limited ("AMVIG") on September 30, 2020. Refer to Note 17, "Disposals." |
Derivative Instruments | Derivative Instruments The Company periodically uses derivatives and other financial instruments to hedge exposures to interest rate, commodity and currency risks. The Company does not hold or issue financial instruments for speculative or trading purposes. For hedges that meet the hedge accounting criteria, the Company, at inception, formally designates and documents the instrument as a fair value hedge or a cash flow hedge of a specific underlying exposure. On an ongoing basis, the Company assesses and documents that its hedges have been and are expected to continue to be highly effective. Interest Rate Risk The Company’s policy is to manage exposure to interest rate risk by maintaining a mixture of fixed-rate and variable-rate debt, monitoring global interest rates and, where appropriate, hedging floating interest rate exposure or debt at fixed interest rates through various interest rate derivative instruments, including, but not limited to, interest rate swaps, cross-currency interest rate swaps, and interest rate locks. For interest rate swaps that are accounted for as fair value hedges, changes in the fair value of both the hedging instruments and the underlying debt obligations are immediately recognized in interest expense. Changes in the fair value of interest rate swaps that have not been designated as hedging instruments are reported in the accompanying unaudited condensed consolidated statements of income under other non-operating income, net. Foreign Currency Risk The Company manufactures and sells its products and finances its operations in a number of countries throughout the world and, as a result, is exposed to movements in foreign currency exchange rates. The purpose of the Company’s foreign currency hedging program is to manage the volatility associated with the changes in exchange rates. To manage this exchange rate risk, the Company utilizes forward contracts. Contracts that qualify for hedge accounting are designated as cash flow hedges of certain forecasted transactions denominated in foreign currencies. The effective portion of the changes in fair value of these instruments is reported in accumulated other comprehensive loss ("AOCI") and reclassified into earnings in the same financial statement line item and in the same period or periods during which the related hedged transactions affect earnings. The ineffective portion is recognized in earnings over the life of the hedging relationship in the same unaudited condensed consolidated statements of income line item as the underlying hedged item. Changes in the fair value of forward contracts that have not been designated as hedging instruments are reported in the accompanying unaudited condensed consolidated statements of income. Commodity Risk Certain raw materials used in the Company's production processes are subject to price volatility caused by weather, supply conditions, political and economic variables and other unpredictable factors. The Company's policy is to minimize exposure to price volatility by passing through the commodity price risk to customers, including through the use of fixed price swaps. The Company purchases on behalf of customers fixed price commodity swaps to offset the exposure of price volatility on the underlying sales contracts. These instruments are cash closed out on maturity and the related cost or benefit is passed through to customers. Information about commodity price exposure is derived from supply forecasts submitted by customers |
Allowance for Doubtful Accounts | The Company determines its allowance for doubtful accounts using a combination of factors, including customer creditworthiness, past transaction history with the customer and changes in customer payment terms or practices. In addition, overall historical collection experience, current economic industry trends and a review of the current status of trade accounts receivable are considered when determining the required allowance for doubtful accounts |
Components of Net Periodic Costs | Service cost is included in operating income. All other components of net periodic benefit cost other than service cost are recorded within other non-operating income, net |
Income Taxes | Income Taxes The provision for income taxes for the three and nine months ended March 31, 2021 and 2020 is based on the Company’s estimated annual effective tax rate for the respective fiscal years before income taxes and equity in income of affiliated companies and adjusted for specific items that are required to be recognized in the period in which they are incurred. |
Segments | Segments The Company's business is organized and presented in the two reportable segments outlined below: Flexibles: Consists of operations that manufacture flexible and film packaging in the food and beverage, medical and pharmaceutical, fresh produce, snack food, personal care, and other industries. Rigid Packaging: Consists of operations that manufacture rigid containers for a broad range of predominantly beverage and food products, including carbonated soft drinks, water, juices, sports drinks, milk-based beverages, spirits and beer, sauces, dressings, spreads and personal care items and plastic caps for a wide variety of applications. Other consists of the Company's undistributed corporate expenses including executive and functional compensation costs, equity method investments, intercompany eliminations and other business activities. The accounting policies of the reportable segments are the same as those in the consolidated financial statements. During the first quarter of fiscal 2021, the Company revised the presentation of adjusted earnings before interest and tax ("Adjusted EBIT") from continuing operations in the reportable segments to include an allocation of certain research and development and selling, general and administrative expenses that management previously reflected in Other. The Company refines its expense allocation methodologies to the reportable segments periodically as more relevant information becomes available and to align with industry or market changes. Corporate expenses are allocated to the reportable segments based primarily on direct attribution. Prior periods have been recast to conform to the new cost allocation methodology. |
Earnings Per Share Computations | Earnings Per Share Computations The Company applies the two-class method when computing its earnings per share ("EPS"), which requires that net income per share for each class of share be calculated assuming all of the Company's net income is distributed as dividends to each class of share based on their contractual rights. Basic EPS is computed by dividing net income available to ordinary shareholders by the weighted-average number of ordinary shares outstanding after excluding the ordinary shares to be repurchased using forward contracts. Diluted EPS includes the effects of share options, restricted shares, performance rights, performance shares and share rights, if dilutive. |
New Accounting Guidance (Tables
New Accounting Guidance (Tables) | 9 Months Ended |
Mar. 31, 2021 | |
Accounting Policies [Abstract] | |
Schedule of Cumulative Effect of Changes in Consolidated Balance Sheet Related to Adoption of CECL | The cumulative effect of the changes made to the Company's consolidated July 1, 2020 balance sheet related to the adoption of CECL is as follows: ($ in millions) June 30, 2020 Adjustments Due to Adoption July 1, 2020 Trade receivables, net $ 1,616 $ (7) $ 1,609 Deferred tax assets 135 2 137 Retained earnings 246 (5) 241 |
Discontinued Operations (Tables
Discontinued Operations (Tables) | 9 Months Ended |
Mar. 31, 2021 | |
Discontinued Operations and Disposal Groups [Abstract] | |
Schedule of Results of EC Remedy Classified as Discontinued Operations | Nine Months Ended March 31, ($ in millions) 2021 2020 Net sales $ — $ 16 Loss from discontinued operations — (7) Tax expense on discontinued operations — (1) Loss from discontinued operations, net of tax $ — $ (8) |
Restructuring Plans (Tables)
Restructuring Plans (Tables) | 9 Months Ended |
Mar. 31, 2021 | |
Restructuring and Related Activities [Abstract] | |
Schedule of Restructuring Related Costs | The total costs incurred from the beginning of the Company's material restructuring plans are as follows: ($ in millions) 2018 Rigid Packaging Restructuring Plan 2019 Bemis Integration Plan Other Restructuring Plans Total Restructuring and Related Expenses (1) Fiscal year 2019 net charges to earnings $ 64 $ 48 $ 19 $ 131 Fiscal year 2020 net charges to earnings 37 60 18 115 Fiscal year 2021 first quarter net charges to earnings 8 6 9 23 Fiscal year 2021 second quarter net charges to earnings 2 21 — 23 Fiscal year 2021 third quarter net charges to earnings 4 (24) (4) (24) Expense incurred to date $ 115 $ 111 $ 42 $ 268 (1) Tot al restructuring and related expenses includes restructuring related costs from the 2019 Bemis Integration Plan o f $2 million, $15 million, $1 million, $4 million and $5 million for fiscal year 2019, fiscal year 2020, first quarter of fiscal year 2021, second quarter of fiscal year 2021 and third quarter of fiscal year 2021, respectively. An analysis of the restructuring charges by type incurred follows: Three Months Ended Nine Months Ended ($ in millions) March 31, 2021 March 31, 2020 March 31, 2021 March 31, 2020 Employee costs $ 8 $ 9 $ 33 $ 33 Fixed asset related costs 10 4 13 9 Other costs 5 5 18 13 Gain on sale of business (52) — (52) — Total restructuring costs, net $ (29) $ 18 $ 12 $ 55 |
Schedule of Restructuring Plan Liability | An analysis of the Company's restructuring plan liability is as follows: ($ in millions) Employee Costs Fixed Asset Related Costs Other Costs Total Restructuring Costs Liability balance at June 30, 2020 $ 70 $ 3 $ 12 $ 85 Net charges to earnings 33 13 18 64 Cash paid (39) (5) (27) (71) Non-cash and other — (11) — (11) Foreign currency translation 2 — (2) — Liability balance at March 31, 2021 $ 66 $ — $ 1 $ 67 |
Inventories, Net (Tables)
Inventories, Net (Tables) | 9 Months Ended |
Mar. 31, 2021 | |
Inventory Disclosure [Abstract] | |
Schedule of Inventories, Net | Inventories, net are summarized as follows: ($ in millions) March 31, 2021 June 30, 2020 Raw materials and supplies $ 818 $ 809 Work in process and finished goods 1,161 1,127 Less: inventory reserves (103) (104) Total inventories, net $ 1,876 $ 1,832 |
Goodwill and Other Intangible_2
Goodwill and Other Intangible Assets (Tables) | 9 Months Ended |
Mar. 31, 2021 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule of Changes in Carrying Amount of Goodwill | Changes in the carrying amount of goodwill attributable to each reportable segment are as follows: ($ in millions) Flexibles Segment Rigid Packaging Segment Total Balance as of June 30, 2020 $ 4,369 $ 970 $ 5,339 Disposals (5) — (5) Currency translation 52 7 59 Balance as of March 31, 2021 $ 4,416 $ 977 $ 5,393 |
Schedule of Components of Intangible Assets | The components of intangible assets are as follows: March 31, 2021 ($ in millions) Gross Carrying Amount Accumulated Amortization and Impairment Net Carrying Amount Customer relationships $ 1,967 $ (362) $ 1,605 Computer software 221 (147) 74 Other (1) 325 (130) 195 Balance as of $ 2,513 $ (639) $ 1,874 June 30, 2020 ($ in millions) Gross Carrying Amount Accumulated Amortization and Impairment Net Carrying Amount Customer relationships $ 1,957 $ (264) $ 1,693 Computer software 218 (131) 87 Other (1) 321 (107) 214 Balance as of $ 2,496 $ (502) $ 1,994 (1) Other includes $16 million for March 31, 2021 and June 30, 2020, respectively, of acquired intellectual property assets not yet being amortized as the related R&D projects have not yet been completed and commercialized. |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 9 Months Ended |
Mar. 31, 2021 | |
Fair Value Disclosures [Abstract] | |
Schedule of Carrying Value and Estimated Fair Value of Long-term Debt | The carrying values and estimated fair values of long-term debt with fixed interest rates (excluding capital leases) were as follows: March 31, 2021 June 30, 2020 Carrying Value Fair Value Carrying Value Fair Value ($ in millions) (Level 2) (Level 2) Total long-term debt with fixed interest rates (excluding commercial paper and finance leases) $ 3,516 $ 3,714 $ 3,599 $ 3,793 |
Schedule of Fair Value of Instruments Measured on Recurring Basis | The following tables summarize the fair value of these instruments, which are measured at fair value on a recurring basis, by level, within the fair value hierarchy: March 31, 2021 ($ in millions) Level 1 Level 2 Level 3 Total Assets Commodity contracts $ — $ 13 $ — $ 13 Forward exchange contracts — 13 — 13 Interest rate swaps — 19 — 19 Total assets measured at fair value $ — $ 45 $ — $ 45 Liabilities Contingent purchase consideration liabilities $ — $ — $ 19 $ 19 Forward exchange contracts — 8 — 8 Total liabilities measured at fair value $ — $ 8 $ 19 $ 27 June 30, 2020 ($ in millions) Level 1 Level 2 Level 3 Total Assets Forward exchange contracts $ — $ 8 $ — $ 8 Interest rate swaps — 32 — 32 Total assets measured at fair value $ — $ 40 $ — $ 40 Liabilities Contingent purchase consideration liabilities $ — $ — $ 15 $ 15 Commodity contracts — 7 — 7 Forward exchange contracts — 17 — 17 Total liabilities measured at fair value $ — $ 24 $ 15 $ 39 |
Derivative Instruments (Tables)
Derivative Instruments (Tables) | 9 Months Ended |
Mar. 31, 2021 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Schedule of Outstanding Commodity Contracts | At March 31, 2021 and June 30, 2020, the Company had the following outstanding commodity contracts to hedge forecasted purchases: March 31, 2021 June 30, 2020 Commodity Volume Volume Aluminum 29,793 tons 44,944 tons PET resin 14,813,550 lbs. 26,006,000 lbs. |
Schedule of Derivative Liabilities at Fair Value | The following tables provide the location of derivative instruments in the unaudited condensed consolidated balance sheets: ($ in millions) Balance Sheet Location March 31, 2021 June 30, 2020 Assets Derivatives in cash flow hedging relationships: Commodity contracts Other current assets $ 13 $ — Forward exchange contracts Other current assets 3 2 Derivatives in fair value hedging relationships: Interest rate swaps Other current assets 4 — Derivatives not designated as hedging instruments: Forward exchange contracts Other current assets 10 6 Total current derivative contracts 30 8 Derivatives in fair value hedging relationships: Interest rate swaps Other non-current assets 15 32 Total non-current derivative contracts 15 32 Total derivative asset contracts $ 45 $ 40 Liabilities Derivatives in cash flow hedging relationships: Commodity contracts Other current liabilities $ — $ 7 Forward exchange contracts Other current liabilities 4 3 Derivatives not designated as hedging instruments: Forward exchange contracts Other current liabilities 4 14 Total current derivative contracts 8 24 Total non-current derivative contracts — — Total derivative liability contracts $ 8 $ 24 |
Schedule of Cash Flow Hedges Included in Accumulated Other Comprehensive Income (Loss) | The following tables provide the effects of derivative instruments on AOCI and in the unaudited condensed consolidated statements of income: Location of Gain (Loss) Reclassified from AOCI into Income (Effective Portion) Gain (Loss) Reclassified from AOCI into Income (Effective Portion) Three Months Ended March 31, Nine Months Ended March 31, ($ in millions) 2021 2020 2021 2020 Derivatives in cash flow hedging relationships Commodity contracts Cost of sales $ 1 $ (1) $ (3) $ (4) Forward exchange contracts Net sales — — — (1) Treasury locks Interest expense (1) — (2) — Total $ — $ (1) $ (5) $ (5) |
Schedule of Derivatives Not Designated as Hedging Instruments | Location of Gain (Loss) Recognized in the Unaudited Condensed Consolidated Statements of Income Gain (Loss) Recognized in Income for Derivatives Not Designated as Hedging Instruments Three Months Ended March 31, Nine Months Ended March 31, ($ in millions) 2021 2020 2021 2020 Derivatives not designated as hedging instruments Forward exchange contracts Other income, net $ 3 $ (4) $ 16 $ (4) Cross currency interest rate swaps Other income, net — 2 (4) 2 Total $ 3 $ (2) $ 12 $ (2) |
Schedule of Fair Value Hedging Instruments In Condensed Consolidated Statement of Income | Location of Gain (Loss) Recognized in the Unaudited Condensed Consolidated Statements of Income Gain (Loss) Recognized in Income for Derivatives in Fair Value Hedging Relationships Three Months Ended March 31, Nine Months Ended March 31, ($ in millions) 2021 2020 2021 2020 Derivatives in fair value hedging relationships Interest rate swaps Interest expense $ (5) $ 8 $ (14) $ 2 Total $ (5) $ 8 $ (14) $ 2 |
Trade Receivables, Net (Tables)
Trade Receivables, Net (Tables) | 9 Months Ended |
Mar. 31, 2021 | |
Receivables [Abstract] | |
Schedule of Trade Receivables, Net and Changes in Allowance for Doubtful Accounts, Including Credit Losses | Trade receivables, net is summarized as follows: ($ in millions) March 31, 2021 June 30, 2020 Trade receivables, gross $ 1,804 $ 1,651 Less: Allowance for doubtful accounts (29) (35) Trade receivables, net $ 1,775 $ 1,616 Nine Months Ended March 31, ($ in millions) 2021 2020 Balance as of June 30 $ (35) $ (34) Impact of adoption of ASU 2016-13 (7) — Recoveries/(charges) to income 3 (6) Write-offs 10 — Foreign currency and other — 3 Balance as of March 31 $ (29) $ (37) (1) Refer to Note 2, "New Accounting Guidance" for more information. |
Components of Net Periodic Be_2
Components of Net Periodic Benefit Cost (Tables) | 9 Months Ended |
Mar. 31, 2021 | |
Retirement Benefits [Abstract] | |
Schedule of Components of Net Benefit Costs | Net periodic benefit cost for benefit plans includes the following components: Three Months Ended March 31, Nine Months Ended March 31, ($ in millions) 2021 2020 2021 2020 Service cost $ 7 $ 7 $ 19 $ 19 Interest cost 9 12 29 37 Expected return on plan assets (14) (18) (44) (54) Amortization of actuarial loss 2 1 6 4 Amortization of prior service credit (1) — (1) (1) Net periodic benefit cost $ 3 $ 2 $ 9 $ 5 |
Shareholders' Equity (Tables)
Shareholders' Equity (Tables) | 9 Months Ended |
Mar. 31, 2021 | |
Equity [Abstract] | |
Schedule of Changes in Ordinary and Treasury Shares | The changes in ordinary and treasury shares during the nine months ended March 31, 2021 and 2020 were as follows: Ordinary Shares Treasury Shares (shares and $ in millions) Number of Shares Amount Number of Shares Amount Balance as of June 30, 2019 1,626 $ 16 1 $ (16) Share buy-back/cancellations (52) — — — Options exercised and shares vested — — (1) 16 Purchase of treasury shares — — 1 (11) Balance as of March 31, 2020 1,574 $ 16 1 $ (11) Balance as of June 30, 2020 1,569 $ 16 7 $ (67) Share buy-back/cancellations (27) (1) Options exercised and shares vested — — (3) 27 Balance as of March 31, 2021 1,542 $ 15 4 $ (40) |
Schedule of Accumulated Other Comprehensive Income (Loss) | The changes in the components of accumulated other comprehensive loss during the nine months ended March 31, 2021 and 2020 were as follows: Foreign Currency Translation Net Investment Hedge Pension Effective Derivatives Total Accumulated Other Comprehensive Loss ($ in millions) (Net of Tax) (Net of Tax) (Net of Tax) (Net of Tax) Balance as of June 30, 2019 $ (609) $ (11) $ (90) $ (12) $ (722) Other comprehensive income (loss) before reclassifications (317) (4) (1) (30) (352) Amounts reclassified from accumulated other comprehensive loss 9 — 3 4 16 Net current period other comprehensive income (loss) (308) (4) 2 (26) (336) Balance as of March 31, 2020 $ (917) $ (15) $ (88) $ (38) $ (1,058) Balance as of June 30, 2020 $ (896) $ (14) $ (106) $ (34) $ (1,049) Other comprehensive income (loss) before reclassifications 101 — (1) 15 115 Amounts reclassified from accumulated other comprehensive loss 26 — 5 4 35 Net current period other comprehensive income (loss) 127 — 4 19 150 Balance as of March 31, 2021 $ (769) $ (14) $ (102) $ (15) $ (899) |
Schedule of Reclassifications Out of Accumulated Other Comprehensive Income (Loss) | The following tables provide details of amounts reclassified from accumulated other comprehensive loss: Three Months Ended March 31, Nine Months Ended March 31, ($ in millions) 2021 2020 2021 2020 Amortization of pension: Amortization of prior service credit $ (1) $ — $ (1) $ (1) Amortization of actuarial loss 2 1 6 4 Total before tax effect 1 1 5 3 Tax benefit on amounts reclassified into earnings — — — — Total net of tax $ 1 $ 1 $ 5 $ 3 (Gains) losses on cash flow hedges: Commodity contracts $ (1) $ 1 $ 3 $ 4 Forward exchange contracts — — — 1 Treasury locks 1 — 2 — Total before tax effect — 1 5 5 Tax benefit on amounts reclassified into earnings — — (1) (1) Total net of tax $ — $ 1 $ 4 $ 4 (Gains) losses on foreign currency translation: Foreign currency translation adjustment (1) $ 1 $ — $ 26 $ 9 Total before tax effect 1 — 26 9 Tax benefit on amounts reclassified into earnings — — — — Total net of tax $ 1 $ — $ 26 $ 9 (1) During the nine months ended March 31, 2021, the Company recorded a gain on disposal of AMVIG and other non-core businesses. Upon completion of the sales, $26 million of accumulated foreign currency translation was transferred from accumulated other comprehensive income to earnings. Refer to Note 17, "Disposals" for more information on disposals. During the nine months ended March 31, 2020, the Company recorded a loss on the sale of the EC Remedy of $9 million, which is the result of the reclassification of accumulated foreign currency translation amounts from accumulated other comprehensive loss to earnings. Refer to Note 3, "Discontinued Operations" for more information on the sale of the EC Remedy. |
Segments (Tables)
Segments (Tables) | 9 Months Ended |
Mar. 31, 2021 | |
Segment Reporting [Abstract] | |
Schedule of Information About Reportable Segments | The following table presents information about reportable segments: Three Months Ended March 31, Nine Months Ended March 31, ($ in millions) 2021 2020 2021 2020 Sales including intersegment sales Flexibles $ 2,500 $ 2,434 $ 7,350 $ 7,280 Rigid Packaging 707 707 2,059 2,047 Total sales including intersegment sales 3,207 3,141 9,409 9,327 Intersegment sales Flexibles — — 2 2 Rigid Packaging — — — — Total intersegment sales — — 2 2 Net sales $ 3,207 $ 3,141 $ 9,407 $ 9,325 Adjusted EBIT from continuing operations Flexibles $ 352 $ 317 $ 1,005 $ 919 Rigid Packaging 75 70 209 197 Other (25) (27) (70) (57) Adjusted EBIT from continuing operations 402 360 1,144 1,059 Less: Material restructuring programs (1) 23 (19) (16) (60) Less: Material acquisition costs and other (2) (4) (15) (17) (116) Less: Amortization of acquired intangible assets from business combinations (3) (40) (41) (121) (150) Less: Impact of hyperinflation (4) (7) (5) (17) (23) Add: Net gain on disposals (5) — — 9 — EBIT from continuing operations 374 280 982 710 Interest income 3 5 10 18 Interest expense (36) (46) (113) (158) Equity in income of affiliated companies, net of tax — (3) (19) (8) Income from continuing operations before income taxes and equity in income of affiliated companies $ 341 $ 236 $ 860 $ 562 (1) Material restructuring programs includes restructuring and related expenses for the 2018 Rigid Packaging Restructuring Plan and the 2019 Bemis Integration Plan for the three and nine months ended March 31, 2021 and 2020. Refer to Note 4, "Restructuring Plans," for more information about the Company's restructuring plans. (2) Material acquisition costs and other includes Bemis transaction related costs and integration costs not qualifying as exit costs for the nine months ended March 31, 2021. Material acquisition costs and other for the nine months ended March 31, 2020 includes $58 million amortization of Bemis acquisition related inventory fair value step-up and $58 million of Bemis transaction related costs and integration costs not qualifying as exit costs. (3) Amortization of acquired intangible assets from business combinations includes amortization expenses related to all acquired intangible assets from acquisitions impacting the periods presented, including $26 million of sales backlog amortization for the nine months ended March 31, 2020 from the Bemis acquisition. (4) Impact of hyperinflation includes the adverse impact of highly inflationary accounting for subsidiaries in Argentina where the functional currency was the Argentine Peso. (5) Net gain on disposals includes the gain realized upon the disposal of AMVIG and the loss upon disposal of other non-core businesses not part of material restructuring programs. Refer to Note 17, "Disposals" for more information about the Company's disposals. |
Schedule of Disaggregation of Revenue by Segments | The following tables disaggregates sales, excluding intersegment sales, information by geography in which the Company operates based on manufacturing or selling operation: Net Sales Three Months Ended March 31, 2021 2020 ($ in millions) Flexibles Rigid Packaging Total Flexibles Rigid Packaging Total North America $ 933 $ 575 $ 1,508 $ 924 $ 577 $ 1,501 Latin America 222 132 354 232 130 362 Europe 953 — 953 928 — 928 Asia Pacific 392 — 392 350 — 350 Net sales $ 2,500 $ 707 $ 3,207 $ 2,434 $ 707 $ 3,141 Net Sales Nine Months Ended March 31, 2021 2020 ($ in millions) Flexibles Rigid Packaging Total Flexibles Rigid Packaging Total North America $ 2,727 $ 1,685 $ 4,412 $ 2,710 $ 1,646 $ 4,356 Latin America 668 374 1,042 744 401 1,145 Europe 2,785 — 2,785 2,718 — 2,718 Asia Pacific 1,168 — 1,168 1,106 — 1,106 Net sales $ 7,348 $ 2,059 $ 9,407 $ 7,278 $ 2,047 $ 9,325 |
Earnings Per Share Computatio_2
Earnings Per Share Computations (Tables) | 9 Months Ended |
Mar. 31, 2021 | |
Earnings Per Share [Abstract] | |
Schedule of Earnings Per Share Computations | Basic EPS is computed by dividing net income available to ordinary shareholders by the weighted-average number of ordinary shares outstanding after excluding the ordinary shares to be repurchased using forward contracts. Diluted EPS includes the effects of share options, restricted shares, performance rights, performance shares and share rights, if dilutive. Three Months Ended March 31, Nine Months Ended March 31, (in millions, except per share amounts) 2021 2020 2021 2020 Numerator Net income attributable to Amcor plc $ 267 $ 181 $ 684 $ 433 Distributed and undistributed earnings attributable to shares to be repurchased — — (1) — Net income available to ordinary shareholders of Amcor plc—basic and diluted $ 267 $ 181 $ 683 $ 433 Net income available to ordinary shareholders of Amcor plc from continuing operations—basic and diluted $ 267 $ 181 $ 683 $ 441 Net income available to ordinary shareholders of Amcor plc from discontinued operations—basic and diluted $ — $ — $ — $ (8) Denominator Weighted-average ordinary shares outstanding 1,550.8 1,594.7 1,558.4 1,610.7 Weighted-average ordinary shares to be repurchased by Amcor plc (2.0) (1.0) (2.0) (1.0) Weighted-average ordinary shares outstanding for EPS—basic 1,548.8 1,593.7 1,556.4 1,609.7 Effect of dilutive shares 1.5 1.0 5.4 1.5 Weighted-average ordinary shares outstanding for EPS—diluted 1,550.3 1,594.7 1,561.8 1,611.2 Per ordinary share income Income from continuing operations $ 0.173 $ 0.114 $ 0.439 $ 0.274 Income from discontinued operations — — — (0.005) Basic earnings per ordinary share $ 0.173 $ 0.114 $ 0.439 $ 0.269 Income from continuing operations $ 0.173 $ 0.114 $ 0.438 $ 0.273 Income from discontinued operations — — — (0.005) Diluted earnings per ordinary share $ 0.173 $ 0.114 $ 0.438 $ 0.269 Note: Per share amounts are computed independently for each of the quarters presented. The sum of the quarters may not equal the total year amount due to the impact of changes in average quarterly shares outstanding and all other quarterly amounts may not equal the total year due to rounding. |
Nature of Operations and Basi_2
Nature of Operations and Basis of Presentation (Details) employee in Thousands | Mar. 31, 2021employeefacilitycountry |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Entity Number of Employees | employee | 47 |
Number of Facilities in which Entity Operates | facility | 230 |
Number of Countries in which Entity Operates | country | 40 |
New Accounting Guidance - CECL
New Accounting Guidance - CECL Balance Sheet Impact (Details) - USD ($) $ in Millions | Mar. 31, 2021 | Jul. 01, 2020 | Jun. 30, 2020 |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||
Trade receivables, net | $ 1,775 | $ 1,609 | $ 1,616 |
Deferred tax assets | 140 | 137 | 135 |
Retained earnings | $ 378 | 241 | $ 246 |
Impact of adoption of ASU 2016-13 ("CECL") | |||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||
Trade receivables, net | (7) | ||
Deferred tax assets | 2 | ||
Retained earnings | $ (5) |
Discontinued Operations - Narra
Discontinued Operations - Narrative (Details) $ in Millions | 9 Months Ended | ||
Mar. 31, 2020USD ($) | Mar. 31, 2021facility | Feb. 11, 2019facility | |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||
Number of facilities divested | 230 | ||
EC Remedy | |||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||
Number of facilities divested | 3 | ||
Loss on sale of disposal group | $ | $ 9 |
Discontinued Operations - Summa
Discontinued Operations - Summary of Results of EC Remedy (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Mar. 31, 2021 | Mar. 31, 2020 | Mar. 31, 2021 | Mar. 31, 2020 | |
Loss from discontinued operations, net of tax | $ 0 | $ 0 | $ 0 | $ (8) |
EC Remedy | ||||
Net sales | 0 | 16 | ||
Loss from discontinued operations | 0 | (7) | ||
Tax expense on discontinued operations | 0 | (1) | ||
Loss from discontinued operations, net of tax | $ 0 | $ (8) |
Restructuring Plans - Narrative
Restructuring Plans - Narrative (Details) - USD ($) | 3 Months Ended | 9 Months Ended | 12 Months Ended | 31 Months Ended | |||||
Mar. 31, 2021 | Dec. 31, 2020 | Sep. 30, 2020 | Mar. 31, 2020 | Mar. 31, 2021 | Mar. 31, 2020 | Jun. 30, 2020 | Jun. 30, 2019 | Mar. 31, 2021 | |
Restructuring Cost and Reserve [Line Items] | |||||||||
Gain on disposal of business excluded from restructuring expenses | $ 52,000,000 | $ 0 | $ 52,000,000 | $ 0 | |||||
Proceeds from divestitures | 214,000,000 | 425,000,000 | |||||||
Payments for restructuring | 71,000,000 | ||||||||
Net charges to earnings | (24,000,000) | $ 23,000,000 | $ 23,000,000 | $ 115,000,000 | $ 131,000,000 | $ 268,000,000 | |||
Employee Costs | |||||||||
Restructuring Cost and Reserve [Line Items] | |||||||||
Payments for restructuring | 39,000,000 | ||||||||
Fixed Asset Related Costs | |||||||||
Restructuring Cost and Reserve [Line Items] | |||||||||
Payments for restructuring | 5,000,000 | ||||||||
Other Costs | |||||||||
Restructuring Cost and Reserve [Line Items] | |||||||||
Payments for restructuring | 27,000,000 | ||||||||
2019 Bemis Integration Plan | |||||||||
Restructuring Cost and Reserve [Line Items] | |||||||||
Anticipated Business Combination Savings | 180,000,000 | ||||||||
Total restructuring costs | 200,000,000 | 200,000,000 | 200,000,000 | ||||||
Net cash inflows from restructuring | 26,000,000 | ||||||||
Proceeds from divestitures | 78,000,000 | ||||||||
Payments for restructuring | 52,000,000 | ||||||||
Payments for restructuring and related expenses | 45,000,000 | ||||||||
Net charges to earnings | (24,000,000) | 21,000,000 | 6,000,000 | 60,000,000 | 48,000,000 | 111,000,000 | |||
2019 Bemis Integration Plan | Minimum | |||||||||
Restructuring Cost and Reserve [Line Items] | |||||||||
Expected cash payments for restructuring | 20,000,000 | 20,000,000 | 20,000,000 | ||||||
2019 Bemis Integration Plan | Maximum | |||||||||
Restructuring Cost and Reserve [Line Items] | |||||||||
Expected cash payments for restructuring | 30,000,000 | 30,000,000 | 30,000,000 | ||||||
2019 Bemis Integration Plan | Restructuring and Related Costs | |||||||||
Restructuring Cost and Reserve [Line Items] | |||||||||
Total restructuring costs | 160,000,000 | 160,000,000 | 160,000,000 | ||||||
2019 Bemis Integration Plan | Integration Costs | |||||||||
Restructuring Cost and Reserve [Line Items] | |||||||||
Total restructuring costs | 40,000,000 | 40,000,000 | 40,000,000 | ||||||
Expected restructuring costs | 40,000,000 | 40,000,000 | 40,000,000 | ||||||
2019 Bemis Integration Plan | Employee Costs | |||||||||
Restructuring Cost and Reserve [Line Items] | |||||||||
Restructuring costs incurred to date | 94,000,000 | 94,000,000 | 94,000,000 | ||||||
2019 Bemis Integration Plan | Fixed Asset Related Costs | |||||||||
Restructuring Cost and Reserve [Line Items] | |||||||||
Expected restructuring costs | 150,000,000 | 150,000,000 | 150,000,000 | ||||||
Restructuring costs incurred to date | 28,000,000 | 28,000,000 | 28,000,000 | ||||||
2019 Bemis Integration Plan | Other Costs | |||||||||
Restructuring Cost and Reserve [Line Items] | |||||||||
Restructuring costs incurred to date | 19,000,000 | 19,000,000 | 19,000,000 | ||||||
2019 Bemis Integration Plan | Restructuring Related | |||||||||
Restructuring Cost and Reserve [Line Items] | |||||||||
Restructuring costs incurred to date | 22,000,000 | 22,000,000 | 22,000,000 | ||||||
Gain on disposal of business excluded from restructuring expenses | 52,000,000 | ||||||||
2018 Rigid Packaging Restructuring Plan | |||||||||
Restructuring Cost and Reserve [Line Items] | |||||||||
Total restructuring costs | 120,000,000 | 120,000,000 | 120,000,000 | ||||||
Expected restructuring costs | 75,000,000 | 75,000,000 | 75,000,000 | ||||||
Payments for restructuring | 17,000,000 | ||||||||
Expected cash payments for restructuring | 5,000,000 | 5,000,000 | 5,000,000 | ||||||
Net charges to earnings | 4,000,000 | 2,000,000 | 8,000,000 | 37,000,000 | 64,000,000 | 115,000,000 | |||
Other Restructuring Plans | |||||||||
Restructuring Cost and Reserve [Line Items] | |||||||||
Net charges to earnings | $ (4,000,000) | $ 0 | $ 9,000,000 | $ 1,000,000 | $ 5,000,000 | $ 2,000,000 | $ 18,000,000 | $ 19,000,000 | $ 42,000,000 |
Restructuring Plans - Restructu
Restructuring Plans - Restructuring Plan Costs (Details) - USD ($) | 3 Months Ended | 9 Months Ended | 12 Months Ended | 31 Months Ended | ||||||
Mar. 31, 2021 | Dec. 31, 2020 | Sep. 30, 2020 | Mar. 31, 2020 | Sep. 30, 2018 | Mar. 31, 2021 | Mar. 31, 2020 | Jun. 30, 2020 | Jun. 30, 2019 | Mar. 31, 2021 | |
Restructuring Cost and Reserve [Line Items] | ||||||||||
Net charges to earnings | $ (24,000,000) | $ 23,000,000 | $ 23,000,000 | $ 115,000,000 | $ 131,000,000 | $ 268,000,000 | ||||
2018 Rigid Packaging Restructuring Plan | ||||||||||
Restructuring Cost and Reserve [Line Items] | ||||||||||
Net charges to earnings | 4,000,000 | 2,000,000 | 8,000,000 | 37,000,000 | 64,000,000 | 115,000,000 | ||||
2019 Bemis Integration Plan | ||||||||||
Restructuring Cost and Reserve [Line Items] | ||||||||||
Net charges to earnings | (24,000,000) | 21,000,000 | 6,000,000 | 60,000,000 | 48,000,000 | 111,000,000 | ||||
Restructuring Related Costs | 5,000,000 | 4,000,000 | 1,000,000 | $ 2,000,000 | 15,000,000 | |||||
Other Restructuring Plans | ||||||||||
Restructuring Cost and Reserve [Line Items] | ||||||||||
Net charges to earnings | $ (4,000,000) | $ 0 | $ 9,000,000 | $ 1,000,000 | $ 5,000,000 | $ 2,000,000 | $ 18,000,000 | $ 19,000,000 | $ 42,000,000 |
Restructuring Plans - Restruc_2
Restructuring Plans - Restructuring Charges by Type (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Mar. 31, 2021 | Mar. 31, 2020 | Mar. 31, 2021 | Mar. 31, 2020 | |
Restructuring and Related Activities [Abstract] | ||||
Employee costs | $ 8 | $ 9 | $ 33 | $ 33 |
Fixed asset related costs | 10 | 4 | 13 | 9 |
Other costs | 5 | 5 | 18 | 13 |
Gain on sale of business | (52) | 0 | (52) | 0 |
Net charges to earnings | $ (29) | $ 18 | $ 12 | $ 55 |
Restructuring Plans - Restruc_3
Restructuring Plans - Restructuring Plan Liability (Details) $ in Millions | 9 Months Ended |
Mar. 31, 2021USD ($) | |
Restructuring Cost and Reserve [Line Items] | |
Liability balance at June 30, 2020 | $ 85 |
Net charges to earnings | 64 |
Cash paid | (71) |
Non-cash and other | (11) |
Foreign currency translation | 0 |
Liability balance at March 31, 2021 | 67 |
Employee Costs | |
Restructuring Cost and Reserve [Line Items] | |
Liability balance at June 30, 2020 | 70 |
Net charges to earnings | 33 |
Cash paid | (39) |
Non-cash and other | 0 |
Foreign currency translation | 2 |
Liability balance at March 31, 2021 | 66 |
Fixed Asset Related Costs | |
Restructuring Cost and Reserve [Line Items] | |
Liability balance at June 30, 2020 | 3 |
Net charges to earnings | 13 |
Cash paid | (5) |
Non-cash and other | (11) |
Foreign currency translation | 0 |
Liability balance at March 31, 2021 | 0 |
Other Costs | |
Restructuring Cost and Reserve [Line Items] | |
Liability balance at June 30, 2020 | 12 |
Net charges to earnings | 18 |
Cash paid | (27) |
Non-cash and other | 0 |
Foreign currency translation | (2) |
Liability balance at March 31, 2021 | $ 1 |
Inventories, Net (Details)
Inventories, Net (Details) - USD ($) $ in Millions | Mar. 31, 2021 | Jun. 30, 2020 |
Inventory Disclosure [Abstract] | ||
Raw materials and supplies | $ 818 | $ 809 |
Work in process and finished goods | 1,161 | 1,127 |
Less: inventory reserves | (103) | (104) |
Total inventories, net | $ 1,876 | $ 1,832 |
Goodwill and Other Intangible_3
Goodwill and Other Intangible Assets - Narrative (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Mar. 31, 2021 | Mar. 31, 2020 | Mar. 31, 2021 | Mar. 31, 2020 | |
Goodwill and Intangible Assets Disclosure [Abstract] | ||||
Amortization of Intangible Assets | $ 44 | $ 47 | $ 134 | $ 166 |
Goodwill and Other Intangible_4
Goodwill and Other Intangible Assets - Changes in Carrying Amount of Goodwill (Details) $ in Millions | 9 Months Ended |
Mar. 31, 2021USD ($) | |
Goodwill [Line Items] | |
Balance as of June 30, 2020 | $ 5,339 |
Disposals | (5) |
Currency translation | 59 |
Balance as of March 31, 2021 | 5,393 |
Flexibles | |
Goodwill [Line Items] | |
Balance as of June 30, 2020 | 4,369 |
Disposals | (5) |
Currency translation | 52 |
Balance as of March 31, 2021 | 4,416 |
Rigid Packaging | |
Goodwill [Line Items] | |
Balance as of June 30, 2020 | 970 |
Disposals | 0 |
Currency translation | 7 |
Balance as of March 31, 2021 | $ 977 |
Goodwill and Other Intangible_5
Goodwill and Other Intangible Assets - Components of Intangible Assets (Details) - USD ($) $ in Millions | Mar. 31, 2021 | Jun. 30, 2020 |
Acquired Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | $ 2,513 | $ 2,496 |
Accumulated Amortization and Impairment | (639) | (502) |
Net Carrying Amount | 1,874 | 1,994 |
Customer relationships | ||
Acquired Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | 1,967 | 1,957 |
Accumulated Amortization and Impairment | (362) | (264) |
Net Carrying Amount | 1,605 | 1,693 |
Computer software | ||
Acquired Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | 221 | 218 |
Accumulated Amortization and Impairment | (147) | (131) |
Net Carrying Amount | 74 | 87 |
Other | ||
Acquired Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | 325 | 321 |
Accumulated Amortization and Impairment | (130) | (107) |
Net Carrying Amount | 195 | 214 |
Intellectual Property | ||
Acquired Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | $ 16 | $ 16 |
Fair Value Measurements - Carry
Fair Value Measurements - Carrying Value and Fair Value of Long-Term Debt (Details) - USD ($) $ in Millions | Mar. 31, 2021 | Jun. 30, 2020 |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Total long-term debt with fixed interest rates (excluding commercial paper and finance leases) | $ 3,516 | $ 3,599 |
Level 2 | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Total long-term debt with fixed interest rates (excluding commercial paper and finance leases) | $ 3,714 | $ 3,793 |
Fair Value Measurements - Asset
Fair Value Measurements - Assets and Liabilities Measured at Fair Value on a Recurring Basis (Details) - USD ($) $ in Millions | Mar. 31, 2021 | Jun. 30, 2020 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative asset | $ 45 | $ 40 |
Derivative liabilities | 8 | 24 |
Level 1 | Recurring | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative asset | 0 | 0 |
Contingent purchase consideration liabilities | 0 | 0 |
Derivative liabilities | 0 | 0 |
Level 1 | Commodity contracts | Recurring | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative asset | 0 | |
Derivative liabilities | 0 | |
Level 1 | Forward exchange contracts | Recurring | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative asset | 0 | 0 |
Derivative liabilities | 0 | 0 |
Level 1 | Interest rate swaps | Recurring | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative asset | 0 | 0 |
Level 2 | Recurring | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative asset | 45 | 40 |
Contingent purchase consideration liabilities | 0 | 0 |
Derivative liabilities | 8 | 24 |
Level 2 | Commodity contracts | Recurring | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative asset | 13 | |
Derivative liabilities | 7 | |
Level 2 | Forward exchange contracts | Recurring | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative asset | 13 | 8 |
Derivative liabilities | 8 | 17 |
Level 2 | Interest rate swaps | Recurring | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative asset | 19 | 32 |
Level 3 | Recurring | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative asset | 0 | 0 |
Contingent purchase consideration liabilities | 19 | 15 |
Derivative liabilities | 19 | 15 |
Level 3 | Commodity contracts | Recurring | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative asset | 0 | |
Derivative liabilities | 0 | |
Level 3 | Forward exchange contracts | Recurring | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative asset | 0 | 0 |
Derivative liabilities | 0 | 0 |
Level 3 | Interest rate swaps | Recurring | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative asset | 0 | 0 |
Total | Recurring | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative asset | 45 | 40 |
Contingent purchase consideration liabilities | 19 | 15 |
Derivative liabilities | 27 | 39 |
Total | Commodity contracts | Recurring | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative asset | 13 | |
Derivative liabilities | 7 | |
Total | Forward exchange contracts | Recurring | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative asset | 13 | 8 |
Derivative liabilities | 8 | 17 |
Total | Interest rate swaps | Recurring | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative asset | $ 19 | $ 32 |
Fair Value Measurements - Narra
Fair Value Measurements - Narrative (Details) - USD ($) | 9 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Technology intangible impairment charges | $ 0 | $ 0 |
Discma AG [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Contingent purchase consideration liabilities | 11,000,000 | |
Non-Core Other [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Contingent purchase consideration liabilities | $ 8,000,000 |
Derivative Instruments - Narrat
Derivative Instruments - Narrative (Details) - USD ($) $ in Millions | Mar. 31, 2021 | Jun. 30, 2020 |
Cross currency interest rate swaps | ||
Derivative [Line Items] | ||
Derivative, Notional Amount | $ 0 | $ 100 |
Interest rate swaps | ||
Derivative [Line Items] | ||
Derivative, Notional Amount | 852 | 837 |
Forward exchange contracts | ||
Derivative [Line Items] | ||
Derivative, Notional Amount | $ 1,100 | $ 1,600 |
Derivative Instruments - Outsta
Derivative Instruments - Outstanding Commodity Contracts (Details) | 3 Months Ended | 9 Months Ended |
Sep. 30, 2020Tlb | Mar. 31, 2021lbT | |
Aluminum | ||
Derivative [Line Items] | ||
Derivative outstanding | T | 44,944 | 29,793 |
PET resin | ||
Derivative [Line Items] | ||
Derivative outstanding | lb | 26,006,000 | 14,813,550 |
Derivative Instruments - Financ
Derivative Instruments - Financial Statement Location (Details) - USD ($) $ in Millions | Mar. 31, 2021 | Jun. 30, 2020 |
Derivatives, Fair Value [Line Items] | ||
Derivative asset | $ 45 | $ 40 |
Derivative liabilities | 8 | 24 |
Other current assets | ||
Derivatives, Fair Value [Line Items] | ||
Derivative asset | 30 | 8 |
Other non-current assets | ||
Derivatives, Fair Value [Line Items] | ||
Derivative asset | 15 | 32 |
Other current liabilities | ||
Derivatives, Fair Value [Line Items] | ||
Derivative liabilities | 8 | 24 |
Other non-current liabilities | ||
Derivatives, Fair Value [Line Items] | ||
Derivative liabilities | 0 | 0 |
Forward exchange contracts | Not designated as hedging instrument | Other current assets | ||
Derivatives, Fair Value [Line Items] | ||
Derivative asset | 10 | 6 |
Forward exchange contracts | Not designated as hedging instrument | Other current liabilities | ||
Derivatives, Fair Value [Line Items] | ||
Derivative liabilities | 4 | 14 |
Cash flow hedging | Commodity contracts | Other current assets | ||
Derivatives, Fair Value [Line Items] | ||
Derivative asset | 13 | 0 |
Cash flow hedging | Commodity contracts | Other current liabilities | ||
Derivatives, Fair Value [Line Items] | ||
Derivative liabilities | 0 | 7 |
Cash flow hedging | Forward exchange contracts | Other current assets | ||
Derivatives, Fair Value [Line Items] | ||
Derivative asset | 3 | 2 |
Cash flow hedging | Forward exchange contracts | Other current liabilities | ||
Derivatives, Fair Value [Line Items] | ||
Derivative liabilities | 4 | 3 |
Fair value hedging | Interest rate swaps | Other current assets | ||
Derivatives, Fair Value [Line Items] | ||
Derivative asset | 4 | 0 |
Fair value hedging | Interest rate swaps | Other non-current assets | ||
Derivatives, Fair Value [Line Items] | ||
Derivative asset | $ 15 | $ 32 |
Derivative Instruments - Effect
Derivative Instruments - Effects of Derivatives on AOCI and Statement of Income (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Mar. 31, 2021 | Mar. 31, 2020 | Mar. 31, 2021 | Mar. 31, 2020 | |
Cash flow hedging | ||||
Derivative [Line Items] | ||||
Gain (Loss) Reclassified from AOCI into Income (Effective Portion) | $ 0 | $ (1) | $ (5) | $ (5) |
Cash flow hedging | Cost of sales | Commodity contracts | ||||
Derivative [Line Items] | ||||
Gain (Loss) Reclassified from AOCI into Income (Effective Portion) | 1 | (1) | (3) | (4) |
Cash flow hedging | Net sales | Forward exchange contracts | ||||
Derivative [Line Items] | ||||
Gain (Loss) Reclassified from AOCI into Income (Effective Portion) | 0 | 0 | 0 | (1) |
Cash flow hedging | Interest expense | Treasury locks | ||||
Derivative [Line Items] | ||||
Gain (Loss) Reclassified from AOCI into Income (Effective Portion) | (1) | 0 | (2) | 0 |
Fair value hedging | ||||
Derivative [Line Items] | ||||
Gain (Loss) Recognized in Income for Derivatives in Fair Value Hedging Relationships | (5) | 8 | (14) | 2 |
Fair value hedging | Interest expense | Interest rate swaps | ||||
Derivative [Line Items] | ||||
Gain (Loss) Recognized in Income for Derivatives in Fair Value Hedging Relationships | (5) | 8 | (14) | 2 |
Not designated as hedging instrument | ||||
Derivative [Line Items] | ||||
Gain (Loss) Recognized in Income for Derivatives Not Designated as Hedging Instruments | 3 | (2) | 12 | (2) |
Not designated as hedging instrument | Other income, net | Forward exchange contracts | ||||
Derivative [Line Items] | ||||
Gain (Loss) Recognized in Income for Derivatives Not Designated as Hedging Instruments | 3 | (4) | 16 | (4) |
Not designated as hedging instrument | Other income, net | Cross currency interest rate swaps | ||||
Derivative [Line Items] | ||||
Gain (Loss) Recognized in Income for Derivatives Not Designated as Hedging Instruments | $ 0 | $ 2 | $ (4) | $ 2 |
Trade Receivables, Net (Details
Trade Receivables, Net (Details) - USD ($) $ in Millions | Mar. 31, 2021 | Jul. 01, 2020 | Jun. 30, 2020 | Mar. 31, 2020 | Jun. 30, 2019 |
Receivables [Abstract] | |||||
Trade receivables, gross | $ 1,804 | $ 1,651 | |||
Less: Allowance for doubtful accounts | (29) | (35) | $ (37) | $ (34) | |
Trade receivables, net | $ 1,775 | $ 1,609 | $ 1,616 |
Trade Receivables, Net - Change
Trade Receivables, Net - Changes in Allowance for Doubtful Accounts, Including Credit Losses (Details) - USD ($) $ in Millions | Jul. 01, 2020 | Mar. 31, 2021 | Mar. 31, 2020 | Mar. 31, 2021 | Mar. 31, 2020 | |
Accounts Receivable, Allowance for Credit Loss [Roll Forward] | ||||||
Balance as of June 30 | $ (35) | $ (35) | $ (34) | |||
Recoveries/(charges) to income | 3 | (6) | ||||
Write-offs | 10 | 0 | ||||
Foreign currency and other | 0 | 3 | ||||
Balance as of March 31 | $ (29) | $ (37) | $ (29) | $ (37) | ||
Cumulative adjustment related to adoption of ASC 326 | us-gaap:AccountingStandardsUpdate201613Member | us-gaap:AccountingStandardsUpdate201613Member | [1] | us-gaap:AccountingStandardsUpdate201602Member | ||
Impact of adoption of ASU 2016-13 ("CECL") | ||||||
Accounts Receivable, Allowance for Credit Loss [Roll Forward] | ||||||
Balance as of March 31 | $ (7) | |||||
[1] | Refer to Note 2, "New Accounting Guidance" for more information. |
Components of Net Periodic Be_3
Components of Net Periodic Benefit Cost (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Mar. 31, 2021 | Mar. 31, 2020 | Mar. 31, 2021 | Mar. 31, 2020 | |
Retirement Benefits [Abstract] | ||||
Service cost | $ 7 | $ 7 | $ 19 | $ 19 |
Interest cost | 9 | 12 | 29 | 37 |
Expected return on plan assets | (14) | (18) | (44) | (54) |
Amortization of actuarial loss | 2 | 1 | 6 | 4 |
Amortization of prior service credit | (1) | 0 | (1) | (1) |
Net periodic benefit cost | $ 3 | $ 2 | $ 9 | $ 5 |
Debt (Details)
Debt (Details) - USD ($) | Mar. 30, 2021 | Mar. 31, 2021 |
Line of Credit Facility [Line Items] | ||
Line of Credit Facility, Maximum Borrowing Capacity | $ 3,750,000,000 | |
Line Of Credit Facility, Extension Period | 1 year | |
3 Year Syndicated Facility | ||
Line of Credit Facility [Line Items] | ||
Debt Instrument, Term | 3 years | |
4 Year Syndicated Facility | ||
Line of Credit Facility [Line Items] | ||
Debt Instrument, Term | 4 years | |
5 Year Syndicated Facility | ||
Line of Credit Facility [Line Items] | ||
Debt Instrument, Term | 5 years |
Income Taxes (Details)
Income Taxes (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Mar. 31, 2021 | Mar. 31, 2020 | Mar. 31, 2021 | Mar. 31, 2020 | |
Income Tax Disclosure [Abstract] | ||||
Income tax expense | $ 71 | $ 56 | $ 187 | $ 123 |
Decrease in effective tax rate | 0.002% | |||
Effective tax rate | 21.90% | 21.70% |
Shareholders' Equity - Narrativ
Shareholders' Equity - Narrative (Details) - USD ($) $ in Millions | 9 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Reclassification out of AOCI | Foreign Currency Translation | ||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||
Net gain realized on sale of equity method investment | $ 26 | |
EC Remedy | ||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||
Discontinued Operation, Gain (Loss) on Disposal of Discontinued Operation, Net of Tax | $ (9) |
Shareholders' Equity - Changes
Shareholders' Equity - Changes in Ordinary and Treasury Shares (Details) - USD ($) shares in Millions, $ in Millions | 3 Months Ended | 9 Months Ended | ||
Mar. 31, 2021 | Mar. 31, 2020 | Mar. 31, 2021 | Mar. 31, 2020 | |
Beginning Balance | $ 4,848 | $ 5,404 | $ 4,687 | $ 5,675 |
Share buy-back/cancellations | (233) | (255) | (308) | (478) |
Purchase of treasury shares | (11) | |||
Ending Balance | 4,705 | 4,803 | $ 4,705 | $ 4,803 |
Ordinary Shares | ||||
Beginning Balance (shares) | 1,569 | 1,626 | ||
Beginning Balance | 16 | $ 16 | $ 16 | $ 16 |
Share buy-back/cancellations | (27) | (52) | ||
Share buy-back/cancellations | $ (1) | $ (1) | $ 0 | |
Ending Balance (shares) | 1,542 | 1,574 | 1,542 | 1,574 |
Ending Balance | $ 15 | $ 16 | $ 15 | $ 16 |
Treasury Shares | ||||
Beginning Balance (shares) | 7 | 1 | ||
Beginning Balance | $ (45) | $ (11) | $ (67) | $ (16) |
Options exercised and shares vested | (3) | (1) | ||
Options exercised and shares vested | $ 27 | $ 16 | ||
Purchase of treasury shares | 1 | |||
Purchase of treasury shares | $ (11) | |||
Ending Balance (shares) | 4 | 1 | 4 | 1 |
Ending Balance | $ (40) | $ (11) | $ (40) | $ (11) |
Shareholders' Equity - Componen
Shareholders' Equity - Components of Accumulated Other Comprehensive Income (Loss) (Details) - USD ($) $ in Millions | 9 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||
Accumulated other comprehensive income (loss), beginning balance | $ (1,049) | |
Accumulated other comprehensive income (loss), ending balance | (899) | |
Foreign Currency Translation | ||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||
Accumulated other comprehensive income (loss), beginning balance | (896) | $ (609) |
Other comprehensive income (loss) before reclassifications | 101 | (317) |
Amounts reclassified from accumulated other comprehensive loss | 26 | 9 |
Net current period other comprehensive income (loss) | 127 | (308) |
Accumulated other comprehensive income (loss), ending balance | (769) | (917) |
Net Investment Hedge | ||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||
Accumulated other comprehensive income (loss), beginning balance | (14) | (11) |
Other comprehensive income (loss) before reclassifications | 0 | (4) |
Amounts reclassified from accumulated other comprehensive loss | 0 | 0 |
Net current period other comprehensive income (loss) | 0 | (4) |
Accumulated other comprehensive income (loss), ending balance | (14) | (15) |
Pension | ||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||
Accumulated other comprehensive income (loss), beginning balance | (106) | (90) |
Other comprehensive income (loss) before reclassifications | (1) | (1) |
Amounts reclassified from accumulated other comprehensive loss | 5 | 3 |
Net current period other comprehensive income (loss) | 4 | 2 |
Accumulated other comprehensive income (loss), ending balance | (102) | (88) |
Effective Derivatives | ||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||
Accumulated other comprehensive income (loss), beginning balance | (34) | (12) |
Other comprehensive income (loss) before reclassifications | 15 | (30) |
Amounts reclassified from accumulated other comprehensive loss | 4 | 4 |
Net current period other comprehensive income (loss) | 19 | (26) |
Accumulated other comprehensive income (loss), ending balance | (15) | (38) |
Total Accumulated Other Comprehensive Loss | ||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||
Accumulated other comprehensive income (loss), beginning balance | (1,049) | (722) |
Other comprehensive income (loss) before reclassifications | 115 | (352) |
Amounts reclassified from accumulated other comprehensive loss | 35 | 16 |
Net current period other comprehensive income (loss) | 150 | (336) |
Accumulated other comprehensive income (loss), ending balance | $ (899) | $ (1,058) |
Shareholders' Equity - Amounts
Shareholders' Equity - Amounts Reclassified from Accumulated Other Comprehensive Income (Loss) (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Mar. 31, 2021 | Mar. 31, 2020 | Mar. 31, 2021 | Mar. 31, 2020 | |
Reclassification Adjustment out of Accumulated Other Comprehensive Income on Derivatives [Line Items] | ||||
Cost of Goods and Services Sold | $ 2,525 | $ 2,489 | $ 7,420 | $ 7,509 |
Total before tax effect | 341 | 236 | 860 | 562 |
Tax benefit on amounts reclassified into earnings | (71) | (56) | (187) | (123) |
Net income attributable to Amcor plc | 267 | 181 | 684 | 433 |
Amortization of prior service credit | Reclassification out of AOCI | ||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income on Derivatives [Line Items] | ||||
Cost of Goods and Services Sold | (1) | 0 | (1) | (1) |
Amortization of actuarial loss | Reclassification out of AOCI | ||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income on Derivatives [Line Items] | ||||
Cost of Goods and Services Sold | 2 | 1 | 6 | 4 |
Accumulated Defined Benefit Plans Adjustments | Reclassification out of AOCI | ||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income on Derivatives [Line Items] | ||||
Total before tax effect | 1 | 1 | 5 | 3 |
Tax benefit on amounts reclassified into earnings | 0 | 0 | 0 | 0 |
Net income attributable to Amcor plc | 1 | 1 | 5 | 3 |
(Gains) losses on cash flow hedges | Reclassification out of AOCI | ||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income on Derivatives [Line Items] | ||||
Total before tax effect | 0 | 1 | 5 | 5 |
Tax benefit on amounts reclassified into earnings | 0 | 0 | (1) | (1) |
Net income attributable to Amcor plc | 0 | 1 | 4 | 4 |
(Gains) losses on cash flow hedges | Reclassification out of AOCI | Commodity contracts | ||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income on Derivatives [Line Items] | ||||
Cost of Goods and Services Sold | (1) | 1 | 3 | 4 |
(Gains) losses on cash flow hedges | Reclassification out of AOCI | Forward exchange contracts | ||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income on Derivatives [Line Items] | ||||
Cost of Goods and Services Sold | 0 | 0 | 0 | 1 |
(Gains) losses on cash flow hedges | Reclassification out of AOCI | Treasury locks | ||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income on Derivatives [Line Items] | ||||
Cost of Goods and Services Sold | 1 | 0 | 2 | 0 |
(Gains) losses on foreign currency translation | Reclassification out of AOCI | ||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income on Derivatives [Line Items] | ||||
Cost of Goods and Services Sold | 1 | 0 | 26 | 9 |
Total before tax effect | 1 | 0 | 26 | 9 |
Tax benefit on amounts reclassified into earnings | 0 | 0 | 0 | 0 |
Net income attributable to Amcor plc | $ 1 | $ 0 | $ 26 | $ 9 |
Segments - Narrative (Details)
Segments - Narrative (Details) | 9 Months Ended |
Mar. 31, 2021segment | |
Segment Reporting [Abstract] | |
Number of Reportable Segments | 2 |
Number of Operating Segments | 2 |
Segments - Reportable Segment S
Segments - Reportable Segment Summary Information (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Mar. 31, 2021 | Mar. 31, 2020 | Mar. 31, 2021 | Mar. 31, 2020 | |
Segment Reporting Information [Line Items] | ||||
Net sales | $ 3,207 | $ 3,141 | $ 9,407 | $ 9,325 |
Adjusted EBIT from continuing operations | 402 | 360 | 1,144 | 1,059 |
Material Restructuring Programs | 23 | (19) | (16) | (60) |
Material Acquisition Costs and Other | (4) | (15) | (17) | (116) |
Amortization of Acquired Intangible Assets in Business Combinations | (40) | (41) | (121) | (150) |
Impact of Hyperinflation | (7) | (5) | (17) | (23) |
Gain (Loss) on Disposition of Other Assets | 0 | 0 | 9 | 0 |
EBIT From Continuing Operations | 374 | 280 | 982 | 710 |
Interest income | 3 | 5 | 10 | 18 |
Interest expense | (36) | (46) | (113) | (158) |
Equity in income of affiliated companies | 0 | (3) | (19) | (8) |
Income from continuing operations before income taxes and equity in income of affiliated companies | 341 | 236 | 860 | 562 |
Bemis Acquisition | ||||
Segment Reporting Information [Line Items] | ||||
Inventory Fair Value Step-Up, Business Combinations | 58 | |||
Business Combination Transaction Related Costs Not Qualifying as Exit Costs | 58 | |||
Sales Backlog Amortization, Business Combinations | 26 | |||
Flexibles | ||||
Segment Reporting Information [Line Items] | ||||
Net sales | 2,500 | 2,434 | 7,348 | 7,278 |
Adjusted EBIT from continuing operations | 352 | 317 | 1,005 | 919 |
Rigid Packaging | ||||
Segment Reporting Information [Line Items] | ||||
Net sales | 707 | 707 | 2,059 | 2,047 |
Adjusted EBIT from continuing operations | 75 | 70 | 209 | 197 |
Other | ||||
Segment Reporting Information [Line Items] | ||||
Adjusted EBIT from continuing operations | (25) | (27) | (70) | (57) |
Reportable segments | ||||
Segment Reporting Information [Line Items] | ||||
Net sales | 3,207 | 3,141 | 9,409 | 9,327 |
Reportable segments | Flexibles | ||||
Segment Reporting Information [Line Items] | ||||
Net sales | 2,500 | 2,434 | 7,350 | 7,280 |
Reportable segments | Rigid Packaging | ||||
Segment Reporting Information [Line Items] | ||||
Net sales | 707 | 707 | 2,059 | 2,047 |
Intersegment eliminations | ||||
Segment Reporting Information [Line Items] | ||||
Net sales | 0 | 0 | 2 | 2 |
Intersegment eliminations | Flexibles | ||||
Segment Reporting Information [Line Items] | ||||
Net sales | 0 | 0 | 2 | 2 |
Intersegment eliminations | Rigid Packaging | ||||
Segment Reporting Information [Line Items] | ||||
Net sales | $ 0 | $ 0 | $ 0 | $ 0 |
Segments - Segment Disaggregati
Segments - Segment Disaggregation of Sales (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Mar. 31, 2021 | Mar. 31, 2020 | Mar. 31, 2021 | Mar. 31, 2020 | |
Disaggregation of Revenue [Line Items] | ||||
Net sales | $ 3,207 | $ 3,141 | $ 9,407 | $ 9,325 |
Flexibles | ||||
Disaggregation of Revenue [Line Items] | ||||
Net sales | 2,500 | 2,434 | 7,348 | 7,278 |
Rigid Packaging | ||||
Disaggregation of Revenue [Line Items] | ||||
Net sales | 707 | 707 | 2,059 | 2,047 |
North America | ||||
Disaggregation of Revenue [Line Items] | ||||
Net sales | 1,508 | 1,501 | 4,412 | 4,356 |
North America | Flexibles | ||||
Disaggregation of Revenue [Line Items] | ||||
Net sales | 933 | 924 | 2,727 | 2,710 |
North America | Rigid Packaging | ||||
Disaggregation of Revenue [Line Items] | ||||
Net sales | 575 | 577 | 1,685 | 1,646 |
Latin America | ||||
Disaggregation of Revenue [Line Items] | ||||
Net sales | 354 | 362 | 1,042 | 1,145 |
Latin America | Flexibles | ||||
Disaggregation of Revenue [Line Items] | ||||
Net sales | 222 | 232 | 668 | 744 |
Latin America | Rigid Packaging | ||||
Disaggregation of Revenue [Line Items] | ||||
Net sales | 132 | 130 | 374 | 401 |
Europe | ||||
Disaggregation of Revenue [Line Items] | ||||
Net sales | 953 | 928 | 2,785 | 2,718 |
Europe | Flexibles | ||||
Disaggregation of Revenue [Line Items] | ||||
Net sales | 953 | 928 | 2,785 | 2,718 |
Europe | Rigid Packaging | ||||
Disaggregation of Revenue [Line Items] | ||||
Net sales | 0 | 0 | 0 | 0 |
Asia Pacific | ||||
Disaggregation of Revenue [Line Items] | ||||
Net sales | 392 | 350 | 1,168 | 1,106 |
Asia Pacific | Flexibles | ||||
Disaggregation of Revenue [Line Items] | ||||
Net sales | 392 | 350 | 1,168 | 1,106 |
Asia Pacific | Rigid Packaging | ||||
Disaggregation of Revenue [Line Items] | ||||
Net sales | $ 0 | $ 0 | $ 0 | $ 0 |
Earnings Per Share Computatio_3
Earnings Per Share Computations (Details) - USD ($) $ / shares in Units, shares in Millions, $ in Millions | 3 Months Ended | 9 Months Ended | |||
Mar. 31, 2021 | Mar. 31, 2020 | Mar. 31, 2021 | Mar. 31, 2020 | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||||
Net income attributable to Amcor plc | $ 267 | $ 181 | $ 684 | $ 433 | |
Distributed and undistributed earnings attributable to shares to be repurchased | 0 | 0 | (1) | 0 | |
Net income available to ordinary shareholders of Amcor plc—basic and diluted | 267 | 181 | 683 | 433 | |
Net income available to ordinary shareholders of Amcor plc from continuing operations—basic and diluted | 267 | 181 | 683 | 441 | |
Net income available to ordinary shareholders of Amcor plc from discontinued operations—basic and diluted | $ 0 | $ 0 | $ 0 | $ (8) | |
Weighted-average ordinary shares outstanding for EPS—basic | 1,550.8 | 1,594.7 | 1,558.4 | 1,610.7 | |
Weighted-average ordinary shares to be repurchased by Amcor plc | (2) | (1) | (2) | (1) | |
Effect of dilutive shares | 1.5 | 1 | 5.4 | 1.5 | |
Weighted-average ordinary shares outstanding for EPS—diluted | 1,550.3 | 1,594.7 | 1,561.8 | 1,611.2 | |
Income from continuing operations | [1] | $ 0.173 | $ 0.114 | $ 0.439 | $ 0.274 |
Income from discontinued operations | 0 | 0 | 0 | (0.005) | |
Basic earnings per ordinary share | [1] | 0.173 | 0.114 | 0.439 | 0.269 |
Income from continuing operations | [1] | 0.173 | 0.114 | 0.438 | 0.273 |
Loss from discontinued operations | [1] | 0 | 0 | 0 | (0.005) |
Diluted earnings per ordinary share | [1] | $ 0.173 | $ 0.114 | $ 0.438 | $ 0.269 |
Excluding forward contracts to purchase own shares | |||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||||
Weighted-average ordinary shares outstanding for EPS—basic | 1,548.8 | 1,593.7 | 1,556.4 | 1,609.7 | |
[1] | Per share amounts may not add due to rounding. |
Earnings Per Share Computatio_4
Earnings Per Share Computations - Narrative (Details) - shares shares in Millions | 3 Months Ended | 9 Months Ended | ||
Mar. 31, 2021 | Mar. 31, 2020 | Mar. 31, 2021 | Mar. 31, 2020 | |
Earnings Per Share [Abstract] | ||||
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount | 1.8 | 53.6 | 8.2 | 31.4 |
Contingencies and Legal Proce_2
Contingencies and Legal Proceedings (Details) - USD ($) $ in Millions | Mar. 31, 2021 | Jun. 30, 2020 |
Commitments and Contingencies Disclosure [Abstract] | ||
Loss Contingency Accrual, Provision | $ 11 | $ 12 |
Loss Contingency, Estimate of Possible Loss | $ 18 | |
Loss Contingency, Letters of Credit | 32 | |
Loss Contingency, Judicial Insurance | 1 | |
Loss Contingency, Cash Deposited | 10 | |
Accrual for Environmental Loss Contingencies, Component Amount | 50 | |
Loss Contingencies [Line Items] | ||
Accrual for Environmental Loss Contingencies, Component Amount | 50 | |
Potentially Responsible Party [Member] | ||
Commitments and Contingencies Disclosure [Abstract] | ||
Accrual for Environmental Loss Contingencies, Component Amount | 17 | |
Loss Contingencies [Line Items] | ||
Accrual for Environmental Loss Contingencies, Component Amount | $ 17 |
Disposals (Details)
Disposals (Details) $ in Millions | 3 Months Ended | |
Dec. 31, 2020USD ($) | Mar. 31, 2021business | |
Non-core businesses in India and Argentina | Disposal Group, Disposed of by Sale, Not Discontinued Operations | Flexibles | ||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||
Number of businesses divested | business | 2 | |
Loss on sale of disposal group | $ 6 | |
AMVIG | ||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||
Net gain realized on sale of equity method investment | $ 15 |
Subsequent Events (Details)
Subsequent Events (Details) - $ / shares | May 04, 2021 | Mar. 31, 2021 | Mar. 31, 2020 | Mar. 31, 2021 | Mar. 31, 2020 |
Subsequent Event [Line Items] | |||||
Dividends declared, per share | $ 0.1175 | $ 0.115 | $ 0.350 | $ 0.350 | |
Subsequent Event | |||||
Subsequent Event [Line Items] | |||||
Dividends declared, per share | $ 0.1175 |