(State or other jurisdiction of incorporation or organization) | (I.R.S. Employer Identification No.) |
Title of each class | Trading Symbol(s) | Name of each exchange on which registered | ||
Large Accelerated Filer | ☐ | Emerging growth company | |
☒ | Smaller Reporting Company | ||
Accelerated Filer | ☐ |
• | We are exposed to changes in consumer demand patterns and customer requirements in numerous industries; |
• | the loss of key customers, a reduction in their production requirements or consolidation among key customers which could have a significant adverse impact on our sales revenue and profitability; |
• | significant competition in the industries and regions in which we operate, which could adversely affect our business; |
• | the failure to realize the anticipated benefits of the acquisition of Bemis; |
• | the failure to successfully integrate the business and operations of Bemis in the expected time frame may adversely affect our future results; |
• | we may be unable to expand our current business effectively through either organic growth, including by product innovation, or acquisitions; |
• | challenges to or the loss of our intellectual property rights, which could have an adverse impact on our ability to compete effectively; |
• | challenging current and future global economic conditions, which have had, and may continue to have, a negative impact on our business operations and financial results; |
• | our international operations subject us to various risks that could adversely affect our business operations and financial results; |
• | price fluctuations or shortages in the availability of raw materials, energy and other inputs, which could adversely affect our business; |
• | we are subject to production, supply and other commercial risks, including counterparty credit risks, which may be exacerbated in times of economic downturn; |
• | a failure in our information technology systems which could negatively affect our business; |
• | if we are unable to attract and retain key personnel, we may be adversely affected; |
• | we are subject to costs and liabilities related to current and future environmental and health and safety laws and regulations that could adversely affect our business; |
• | we are subject to the risk of labor disputes, which could adversely affect our business; |
• | our financing agreements will need to be renegotiated if the London Interbank Offered Rate ("LIBOR") ceases to exist; |
• | we are exposed to foreign exchange rate risk; |
• | an increase in interest rates could reduce our reported results of operations; |
• | a downgrade in our credit rating could increase our borrowing costs and negatively affect our financial condition and results of operations; |
• | failure to hedge effectively against adverse fluctuations in interest rates and foreign exchange rates could negatively impact our results of operations; |
• | a significant write-down of goodwill and/or other intangible assets would have a material adverse effect on our reported results of operations and net worth; |
• | significant demands have been placed on our financial controls and reporting systems as a result of the acquisition of Bemis; |
• | if we fail to maintain an effective system of internal control over financial reporting in the future, we may not be able to accurately report our financial condition, results of operations or cash flows, which may adversely affect investor confidence in us and, as a result, the value of our common stock; |
• | our insurance policies, including our use of a captive insurance company, may not provide adequate protection against all of the risks we face; |
• | litigation or regulatory developments which could adversely affect our business operations and financial performance; |
• | changing government regulations in environmental, health, and safety matters which may adversely affect our company; and |
• | our success is dependent on our ability to develop and successfully introduce new products and to develop, acquire and retain intellectual property rights. |
Three Months Ended December 31, | Six Months Ended December 31, | |||||||||||||||
($ in millions, except per share data) | 2019 | 2018 | 2019 | 2018 | ||||||||||||
Net sales | $ | $ | $ | $ | ||||||||||||
Cost of sales | ( | ) | ( | ) | ( | ) | ( | ) | ||||||||
Gross profit | ||||||||||||||||
Operating expenses: | ||||||||||||||||
Selling, general, and administrative expenses | ( | ) | ( | ) | ( | ) | ( | ) | ||||||||
Research and development expenses | ( | ) | ( | ) | ( | ) | ( | ) | ||||||||
Restructuring and related expenses | ( | ) | ( | ) | ( | ) | ( | ) | ||||||||
Other income, net | ||||||||||||||||
Operating income | ||||||||||||||||
Interest income | ||||||||||||||||
Interest expense | ( | ) | ( | ) | ( | ) | ( | ) | ||||||||
Other non-operating income (loss), net | ||||||||||||||||
Income from continuing operations before income taxes and equity in income (loss) of affiliated companies | ||||||||||||||||
Income tax expense | ( | ) | ( | ) | ( | ) | ( | ) | ||||||||
Equity in income (loss) of affiliated companies, net of tax | ( | ) | ( | ) | ||||||||||||
Income from continuing operations | ||||||||||||||||
Income (loss) from discontinued operations, net of tax | ( | ) | ||||||||||||||
Net income | $ | $ | $ | $ | ||||||||||||
Net (income) loss attributable to non-controlling interests | $ | ( | ) | $ | ( | ) | $ | ( | ) | $ | ( | ) | ||||
Net income attributable to Amcor plc | $ | $ | $ | $ | ||||||||||||
Basic earnings per share: | ||||||||||||||||
Income from continuing operations | $ | $ | $ | $ | ||||||||||||
Income from discontinued operations | ( | ) | ||||||||||||||
Net income | $ | $ | $ | $ | ||||||||||||
Diluted earnings per share: | ||||||||||||||||
Income from continuing operations | $ | $ | $ | $ | ||||||||||||
Income from discontinued operations | ( | ) | ||||||||||||||
Net income | $ | $ | $ | $ |
Three Months Ended December 31, | Six Months Ended December 31, | |||||||||||||||
($ in millions) | 2019 | 2018 | 2019 | 2018 | ||||||||||||
Net income | $ | $ | $ | $ | ||||||||||||
Other comprehensive income (loss): | ||||||||||||||||
Net gains (losses) on cash flow hedges, net of tax (a) | ( | ) | ( | ) | ||||||||||||
Foreign currency translation adjustments, net of tax (b) | ( | ) | ||||||||||||||
Net investment hedge of foreign operations, net of tax (c) | ( | ) | ( | ) | ( | ) | ||||||||||
Pension, net of tax (d) | ( | ) | ( | ) | ||||||||||||
Other comprehensive income (loss) | ( | ) | ( | ) | ||||||||||||
Total comprehensive income | ||||||||||||||||
Comprehensive (income) loss attributable to non-controlling interest | ( | ) | ( | ) | ( | ) | ( | ) | ||||||||
Comprehensive income attributable to Amcor plc | $ | $ | $ | $ | ||||||||||||
(a) Tax (expense) benefit related to cash flow hedges | $ | ( | ) | $ | $ | ( | ) | $ | ||||||||
(b) Tax (expense) benefit related to foreign currency translation adjustments | $ | $ | $ | ( | ) | $ | ( | ) | ||||||||
(c) Tax (expense) benefit related to net investment hedge of foreign operations | $ | ( | ) | $ | ( | ) | $ | $ | ||||||||
(d) Tax (expense) benefit related to pension adjustments | $ | ( | ) | $ | ( | ) | $ | ( | ) | $ | ( | ) |
(in millions) | December 31, 2019 | June 30, 2019 | ||||||
Assets | ||||||||
Current assets: | ||||||||
Cash and cash equivalents | $ | $ | ||||||
Trade receivables, net | ||||||||
Inventories, net | ||||||||
Prepaid expenses and other current assets | ||||||||
Assets held for sale | ||||||||
Total current assets | ||||||||
Non-current assets: | ||||||||
Investments in affiliated companies | ||||||||
Property, plant and equipment, net | ||||||||
Operating lease assets | ||||||||
Deferred tax assets | ||||||||
Other intangible assets, net | ||||||||
Goodwill | ||||||||
Employee benefit assets | ||||||||
Other non-current assets | ||||||||
Total non-current assets | ||||||||
Total assets | $ | $ | ||||||
Liabilities | ||||||||
Current liabilities: | ||||||||
Current portion of long-term debt | $ | $ | ||||||
Short-term debt | ||||||||
Trade payables | ||||||||
Accrued employee costs | ||||||||
Other current liabilities | ||||||||
Liabilities held for sale | ||||||||
Total current liabilities | ||||||||
Non-current liabilities: | ||||||||
Long-term debt, less current portion | ||||||||
Operating lease liabilities | ||||||||
Deferred tax liabilities | ||||||||
Employee benefit obligations | ||||||||
Other non-current liabilities | ||||||||
Total non-current liabilities | ||||||||
Total liabilities | ||||||||
Commitments and contingencies (See Note 16) | ||||||||
Shareholders' Equity | ||||||||
Amcor plc shareholders’ equity: | ||||||||
Ordinary shares ($0.01 par value) | ||||||||
Authorized (9,000.0 shares) | ||||||||
Issued (1,604.0 and 1,625.9 shares, respectively) | ||||||||
Additional paid-in capital | ||||||||
Retained earnings | ||||||||
Accumulated other comprehensive income (loss) | ( | ) | ( | ) | ||||
Treasury shares (1.1 and 1.4 shares, respectively) | ( | ) | ( | ) | ||||
Total Amcor plc shareholders' equity | ||||||||
Non-controlling interest | ||||||||
Total shareholders' equity | ||||||||
Total liabilities and shareholders' equity | $ | $ |
Six Months Ended December 31, | ||||||||
($ in millions) | 2019 | 2018 | ||||||
Cash flows from operating activities: | ||||||||
Net income | $ | $ | ||||||
Adjustments to reconcile net income to net cash provided by operating activities: | ||||||||
Depreciation, amortization and impairment | ||||||||
Net periodic benefit cost | ||||||||
Amortization of debt discount and deferred financing costs | ||||||||
Amortization of deferred gain on sale and leasebacks | ( | ) | ||||||
Net gain on disposal of property, plant and equipment | ( | ) | ( | ) | ||||
Equity in (income) loss of affiliated companies | ( | ) | ||||||
Net foreign exchange (gain) loss | ( | ) | ||||||
Share-based compensation | ||||||||
Other, net | ( | ) | ||||||
Loss on transition to hyperinflationary accounting for Argentine subsidiaries | ||||||||
Deferred income taxes, net | ( | ) | ||||||
Dividends received from affiliated companies | ||||||||
Changes in operating assets and liabilities, excluding effect of acquisitions, divestitures, and currency | ( | ) | ( | ) | ||||
Net cash provided by operating activities | ||||||||
Cash flows from investing activities: | ||||||||
(Issuance) of loans to affiliated companies | ( | ) | ||||||
Investments in affiliated companies | ( | ) | ||||||
Purchase of property, plant and equipment and other intangible assets | ( | ) | ( | ) | ||||
Proceeds from divestiture | ||||||||
Proceeds from sales of property, plant and equipment and other intangible assets | ||||||||
Net cash (used in) provided by investing activities | ( | ) | ||||||
Cash flows from financing activities: | ||||||||
Proceeds from issuance of shares | ||||||||
Settlement of forward contracts | ( | ) | ||||||
Purchase of treasury shares | ( | ) | ( | ) | ||||
Proceeds from issuance of treasury shares under dividend reinvestment plan | ||||||||
Proceeds from (purchase of) non-controlling interest | ||||||||
Proceeds from issuance of long-term debt | ||||||||
Repayment of long-term debt | ( | ) | ( | ) | ||||
Net borrowing/(repayment) of commercial paper | ( | ) | ||||||
Net borrowing/(repayment) of short-term debt | ( | ) | ( | ) | ||||
Repayment of lease liabilities | ( | ) | ( | ) | ||||
Share buyback/cancellations | ( | ) | ||||||
Dividends paid | ( | ) | ( | ) | ||||
Net cash used in financing activities | ( | ) | ( | ) | ||||
Effect of exchange rates on cash and cash equivalents | ( | ) | ( | ) | ||||
Net increase (decrease) in cash and cash equivalents | ( | ) | ||||||
Cash and cash equivalents balance at beginning of year | ||||||||
Cash and cash equivalents balance at end of period | $ | $ | ||||||
Interest paid, net of amounts capitalized | $ | $ | ||||||
Income taxes paid | $ | $ |
($ in millions, except per share data) | Ordinary Shares | Additional Paid-In Capital | Retained Earnings | Accumulated Other Comprehensive Income (Loss) | Treasury Shares | Non-controlling Interest | Total | |||||||||||||||||||||
Balance as of September 30, 2018 | $ | $ | $ | $ | ( | ) | $ | ( | ) | $ | $ | |||||||||||||||||
Net income (loss) | ||||||||||||||||||||||||||||
Other comprehensive income (loss) | ( | ) | ( | ) | ( | ) | ||||||||||||||||||||||
Dividends declared | ( | ) | ( | ) | ||||||||||||||||||||||||
Options exercised and shares vested | ( | ) | ||||||||||||||||||||||||||
Issuance of treasury shares under dividend reinvestment plan | ||||||||||||||||||||||||||||
Share-based compensation expense | ||||||||||||||||||||||||||||
Change in non-controlling interest | ||||||||||||||||||||||||||||
Balance as of December 31, 2018 | $ | $ | $ | $ | ( | ) | $ | ( | ) | $ | $ | |||||||||||||||||
Balance as of June 30, 2018 | $ | $ | $ | $ | ( | ) | $ | ( | ) | $ | $ | |||||||||||||||||
Net income (loss) | ||||||||||||||||||||||||||||
Other comprehensive income (loss) | ( | ) | ( | ) | ( | ) | ||||||||||||||||||||||
Dividends declared ($0.240 per share) | ( | ) | ( | ) | ( | ) | ||||||||||||||||||||||
Options exercised and shares vested | ( | ) | ||||||||||||||||||||||||||
Settlement of forward contracts to purchase own equity to meet share based incentive plans, net of tax | ( | ) | ||||||||||||||||||||||||||
Purchase of treasury shares | ( | ) | ( | ) | ||||||||||||||||||||||||
Issuance of treasury shares under dividend reinvestment plan | ||||||||||||||||||||||||||||
Share-based compensation expense | ||||||||||||||||||||||||||||
Change in non-controlling interest | ( | ) | ||||||||||||||||||||||||||
Balance as of December 31, 2018 | $ | $ | $ | $ | ( | ) | $ | ( | ) | $ | $ | |||||||||||||||||
Balance as of September 30, 2019 | $ | $ | $ | $ | ( | ) | $ | ( | ) | $ | $ | |||||||||||||||||
Net income (loss) | ||||||||||||||||||||||||||||
Other comprehensive income (loss) | ||||||||||||||||||||||||||||
Share buyback/cancellations | ( | ) | ( | ) | ( | ) | ||||||||||||||||||||||
Dividends declared ($0.115 per share) | ( | ) | ( | ) | ( | ) | ||||||||||||||||||||||
Options exercised and shares vested | ( | ) | ||||||||||||||||||||||||||
Purchase of treasury shares | ( | ) | ( | ) | ||||||||||||||||||||||||
Share-based compensation expense | ||||||||||||||||||||||||||||
Change in non-controlling interest | ||||||||||||||||||||||||||||
Balance as of December 31, 2019 | $ | $ | $ | $ | ( | ) | $ | ( | ) | $ | $ | |||||||||||||||||
Balance as of June 30, 2019 | $ | $ | $ | $ | ( | ) | $ | ( | ) | $ | $ | |||||||||||||||||
Net income (loss) | ||||||||||||||||||||||||||||
Other comprehensive income (loss) | ||||||||||||||||||||||||||||
Share buyback/cancellations | ( | ) | ( | ) | ( | ) | ||||||||||||||||||||||
Dividends declared ($0.235 per share) | ( | ) | ( | ) | ( | ) | ||||||||||||||||||||||
Options exercised and shares vested | ( | ) | ||||||||||||||||||||||||||
Purchase of treasury shares | ( | ) | ( | ) | ||||||||||||||||||||||||
Share-based compensation expense | ||||||||||||||||||||||||||||
Change in non-controlling interest | ||||||||||||||||||||||||||||
Cumulative adjustment related to the adoption of ASC 842 (1) | ||||||||||||||||||||||||||||
Balance as of December 31, 2019 | $ | $ | $ | $ | ( | ) | $ | ( | ) | $ | $ |
(1) | Refer to Note 2, "New Accounting Guidance" for more information. |
($ in millions) | June 30, 2019 | Adjustments due to Adoption | At July 1, 2019 | ||||||
Operating lease assets | |||||||||
Other current liabilities | |||||||||
Operating lease liabilities | |||||||||
Deferred tax liabilities | |||||||||
Other non-current liabilities | ( | ) | |||||||
Retained earnings |
Bemis shares outstanding at June 11, 2019 (in millions) | ||||
Share exchange ratio | ||||
Price per share (based on Amcor’s closing share price on June 11, 2019) | $ | |||
Total equity consideration ($ in millions) | $ |
($ in millions) | ||||
Cash and cash equivalents | $ | |||
Trade receivables | ||||
Inventories | ||||
Prepaid expenses and other current assets | ||||
Assets held for sale | ||||
Property, plant and equipment | ||||
Deferred tax assets | ||||
Other intangible assets | ||||
Other non-current assets | ||||
Total identifiable assets acquired | ||||
Current portion of long-term debt | ||||
Short-term debt | ||||
Trade payables | ||||
Accrued employee costs | ||||
Other current liabilities | ||||
Liabilities held for sale | ||||
Long-term debt, less current portion | ||||
Deferred tax liabilities | ||||
Employee benefit obligation | ||||
Other non-current liabilities | ||||
Total liabilities assumed | ||||
Net identifiable assets acquired | ||||
Goodwill | ||||
Net assets acquired | $ |
Fair Value | Weighted-average Estimated Useful Life | |||||
($ in millions) | (Years) | |||||
Customer relationships | $ | |||||
Technology | ||||||
Other | ||||||
Total other intangible assets | $ |
Three Months Ended December 31, | Six Months Ended December 31, | |||||||
($ in millions) | 2019 | |||||||
Net sales | $ | $ | ||||||
Income (loss) from discontinued operations | ( | ) | ||||||
Tax expense on discontinued operations | ||||||||
Income (loss) from discontinued operations, net of tax | $ | $ | ( | ) |
($ 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 | ||||||||||||||||
Fiscal year 2020 first quarter net charges to earnings | ||||||||||||||||
Fiscal year 2020 second quarter net charges to earnings | ||||||||||||||||
Expense incurred to date | $ | $ | $ | $ |
(1) | Total restructuring and related expenses includes $ |
($ in millions) | Employee Costs | Fixed Asset Related Costs | Other Costs | Total Restructuring Costs | |||||||||||
Liability balance at June 30, 2019 | |||||||||||||||
Net charges to earnings | |||||||||||||||
Cash paid | ( | ) | ( | ) | ( | ) | ( | ) | |||||||
Non-cash and other | ( | ) | ( | ) | |||||||||||
Foreign currency translation | ( | ) | ( | ) | ( | ) | ( | ) | |||||||
Liability balance at December 31, 2019 | $ | $ | $ |
($ in millions) | December 31, 2019 | June 30, 2019 | ||||||
Raw materials and supplies | $ | $ | ||||||
Work in process and finished goods | ||||||||
Less: inventory reserves | ( | ) | ( | ) | ||||
Total inventories, net | $ | $ |
($ in millions) | Flexibles Segment | Rigid Packaging Segment | Total | |||||||||
Balance as of June 30, 2019 | $ | $ | $ | |||||||||
Acquisition and acquisition adjustments | ||||||||||||
Currency translation | ( | ) | ( | ) | ||||||||
Balance as of December 31, 2019 | $ | $ | $ |
December 31, 2019 | ||||||||||||
($ in millions) | Gross Carrying Amount | Accumulated Amortization and Impairment | Net Carrying Amount | |||||||||
Customer relationships | $ | $ | ( | ) | $ | |||||||
Computer software | ( | ) | ||||||||||
Other (1) | ( | ) | ||||||||||
Reported balance | $ | $ | ( | ) | $ |
June 30, 2019 | ||||||||||||
($ in millions) | Gross Carrying Amount | Accumulated Amortization and Impairment | Net Carrying Amount | |||||||||
Customer relationships | $ | $ | ( | ) | $ | |||||||
Computer software | ( | ) | ||||||||||
Other (1) | ( | ) | ||||||||||
Reported balance | $ | $ | ( | ) | $ |
(1) | Other includes $ |
December 31, 2019 | June 30, 2019 | |||||||||||||||
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 capital leases) | $ | $ | $ | $ |
December 31, 2019 | ||||||||||||||||
($ in millions) | Level 1 | Level 2 | Level 3 | Total | ||||||||||||
Assets | ||||||||||||||||
Commodity contracts | $ | $ | $ | $ | ||||||||||||
Forward exchange contracts | ||||||||||||||||
Interest rate swaps | ||||||||||||||||
Cross currency interest rate swaps | ||||||||||||||||
Total assets measured at fair value | $ | $ | $ | $ | ||||||||||||
Liabilities | ||||||||||||||||
Contingent purchase consideration liabilities | $ | $ | $ | $ | ||||||||||||
Commodity contracts | ||||||||||||||||
Forward exchange contracts | ||||||||||||||||
Interest rate swaps | ||||||||||||||||
Total liabilities measured at fair value | $ | $ | $ | $ |
June 30, 2019 | ||||||||||||||||
($ in millions) | Level 1 | Level 2 | Level 3 | Total | ||||||||||||
Assets | ||||||||||||||||
Commodity contracts | $ | $ | $ | $ | ||||||||||||
Forward exchange contracts | ||||||||||||||||
Interest rate swaps | ||||||||||||||||
Total assets measured at fair value | $ | $ | $ | $ | ||||||||||||
Liabilities | ||||||||||||||||
Contingent purchase consideration liabilities | $ | $ | $ | $ | ||||||||||||
Commodity contracts | ||||||||||||||||
Forward exchange contracts | ||||||||||||||||
Interest rate swaps | ||||||||||||||||
Total liabilities measured at fair value | $ | $ | $ | $ |
December 31, 2019 | June 30, 2019 | |||
Commodity | Volume | Volume | ||
Aluminum |
($ in millions) | Balance Sheet Location | December 31, 2019 | June 30, 2019 | |||||||
Assets | ||||||||||
Derivatives in cash flow hedging relationships: | ||||||||||
Commodity contracts | Other current assets | $ | $ | |||||||
Forward exchange contracts | Other current assets | $ | $ | |||||||
Derivatives not designated as hedging instruments: | ||||||||||
Forward exchange contracts | Other current assets | |||||||||
Cross currency interest rate swaps | Other current assets | |||||||||
Total current derivative contracts | ||||||||||
Derivatives in fair value hedging relationships: | ||||||||||
Interest rate swaps | Other non-current assets | |||||||||
Derivatives not designated as hedging instruments: | ||||||||||
Forward exchange contracts | Other non-current assets | |||||||||
Total non-current derivative contracts | ||||||||||
Total derivative asset contracts | $ | $ | ||||||||
Liabilities | ||||||||||
Derivatives in cash flow hedging relationships: | ||||||||||
Commodity contracts | Other current liabilities | $ | $ | |||||||
Forward exchange contracts | Other current liabilities | |||||||||
Derivatives not designated as hedging instruments: | ||||||||||
Forward exchange contracts | Other current liabilities | |||||||||
Total current derivative contracts | ||||||||||
Derivatives in cash flow hedging relationships: | ||||||||||
Forward exchange contracts | Other non-current liabilities | |||||||||
Derivatives not designated as hedging instruments: | ||||||||||
Forward exchange contracts | Other non-current liabilities | |||||||||
Total non-current derivative contracts | ||||||||||
Total derivative liability contracts | $ | $ |
Location of Gain (Loss) Reclassified from AOCI into Income (Effective Portion) | Gain (Loss) Reclassified from AOCI into Income (Effective Portion) | |||||||||||||||||
Three Months Ended December 31, | Six Months Ended December 31, | |||||||||||||||||
($ in millions) | 2019 | 2018 | 2019 | 2018 | ||||||||||||||
Derivatives in cash flow hedging relationships | ||||||||||||||||||
Commodity contracts | Cost of sales | $ | ( | ) | $ | ( | ) | $ | ( | ) | $ | |||||||
Forward exchange contracts | Net sales | ( | ) | ( | ) | ( | ) | ( | ) | |||||||||
Forward exchange contracts | Cost of sales | ( | ) | ( | ) | ( | ) | |||||||||||
Total | $ | ( | ) | $ | ( | ) | $ | ( | ) | $ | ( | ) |
Location of Gain (Loss) Recognized in the Unaudited Condensed Consolidated Statement of Income | Gain (Loss) Recognized in Income for Derivatives Not Designated as Hedging Instruments | |||||||||||||||||
Three Months Ended December 31, | Six Months Ended December 31, | |||||||||||||||||
($ in millions) | 2019 | 2018 | 2019 | 2018 | ||||||||||||||
Derivatives not designated as hedging instruments | ||||||||||||||||||
Forward exchange contracts | Other income, net | $ | $ | $ | ( | ) | $ | |||||||||||
Cross currency interest rate swaps | Other income, net | ( | ) | ( | ) | |||||||||||||
Total | $ | $ | ( | ) |
Location of Gain (Loss) Recognized in the Unaudited Condensed Consolidated Statement of Income | Gain (Loss) Recognized in Income for Derivatives in Fair Value Hedging Relationships | |||||||||||||||||
Three Months Ended December 31, | Six Months Ended December 31, | |||||||||||||||||
($ in millions) | 2019 | 2018 | 2019 | 2018 | ||||||||||||||
Derivatives in fair value hedging relationships | ||||||||||||||||||
Interest rate swaps | Interest expense | $ | ( | ) | $ | $ | ( | ) | $ | |||||||||
Total | $ | ( | ) | $ | $ | ( | ) | $ |
(in millions) | Three Months Ended December 31, | Six Months Ended December 31, | ||||||
Statement of Income Location | 2019 | |||||||
Operating leases | ||||||||
Cost of products sold | $ | $ | ||||||
Selling, general and administrative expenses | ||||||||
Total lease cost (1) | $ | $ |
(1) | Includes short-term leases and variable lease costs, which are immaterial. |
(in millions) | Balance Sheet Location | December 31, 2019 | ||||
Assets | ||||||
Operating lease assets | Operating lease assets | $ | ||||
Finance lease assets (1) | Property, plant and equipment, net | |||||
Total lease assets | $ | |||||
Liabilities | ||||||
Operating leases: | ||||||
Current operating lease liabilities | Other current liabilities | $ | ||||
Non-current operating lease liabilities | Operating lease liabilities | |||||
Finance leases: | ||||||
Current finance lease liabilities | Current portion of long-term debt | |||||
Non-current finance lease liabilities | Long-term debt, less current portion | |||||
Total lease liabilities | $ |
(1) | Finance lease assets are recorded net of accumulated amortization of $ |
Six Months Ended December 31, | ||||
(in millions) | 2019 | |||
Cash paid for amounts included in the measurement of lease liabilities: | ||||
Operating cash flows from operating leases | $ | |||
Lease assets obtained in exchange for new lease obligations: | ||||
Operating leases | $ | |||
Finance leases | $ |
(in millions) | Operating Leases | Finance Leases | ||||||
Remainder of fiscal 2020 | $ | $ | ||||||
Fiscal 2021 | ||||||||
Fiscal 2022 | ||||||||
Fiscal 2023 | ||||||||
Fiscal 2024 | ||||||||
Thereafter | ||||||||
Total lease payments | ||||||||
Less: imputed interest | ||||||||
Present value of lease liabilities | $ | $ |
(in millions) | Operating Leases | |||
Fiscal 2020 | $ | |||
Fiscal 2021 | ||||
Fiscal 2022 | ||||
Fiscal 2023 | ||||
Fiscal 2024 | ||||
Thereafter | ||||
Total minimum obligations | $ |
December 31, 2019 | |||
Weighted average remaining lease term (in years): | |||
Operating leases | |||
Finance leases | |||
Weighted average discount rate: | |||
Operating Leases | % | ||
Finance leases | % |
Three Months Ended December 31, | Six Months Ended December 31, | |||||||||||||||
($ in millions) | 2019 | 2018 | 2019 | 2018 | ||||||||||||
Service cost | $ | $ | $ | $ | ||||||||||||
Interest cost | ||||||||||||||||
Expected return on plan assets | ( | ) | ( | ) | ( | ) | ( | ) | ||||||||
Amortization of net loss | ||||||||||||||||
Amortization of prior service credit | ( | ) | ( | ) | ( | ) | ( | ) | ||||||||
Curtailment credit | ( | ) | ( | ) | ||||||||||||
Net periodic benefit cost | $ | $ | $ | $ |
Ordinary Shares | Treasury Shares | |||||||||||||
(shares and $ in millions) | Number of Shares | Amount | Number of Shares | Amount | ||||||||||
Balance as of June 30, 2018 | $ | $ | ( | ) | ||||||||||
Options exercised and shares vested | ( | ) | ||||||||||||
Settlement of forward contracts to purchase own equity to meet share base incentive plans, net of tax | ( | ) | ||||||||||||
Purchase of treasury shares | ( | ) | ||||||||||||
Issuance of treasury shares under dividend reinvestment plan | ( | ) | ||||||||||||
Balance as of December 31, 2018 | $ | $ | ( | ) | ||||||||||
Balance as of June 30, 2019 | $ | $ | ( | ) | ||||||||||
Share buy-back/cancellations | ( | ) | ( | ) | ||||||||||
Options exercised and shares vested | ( | ) | ||||||||||||
Purchase of treasury shares | ( | ) | ||||||||||||
Balance as of December 31, 2019 | $ | $ | ( | ) |
Foreign Currency Translation | Net Investment Hedge | Pension | Effective Derivatives | Total Accumulated Other Comprehensive Income (Loss) | ||||||||||||||||
($ in millions) | (Net of Tax) | (Net of Tax) | (Net of Tax) | (Net of Tax) | ||||||||||||||||
Balance as of June 30, 2018 | $ | ( | ) | $ | $ | ( | ) | $ | ( | ) | $ | ( | ) | |||||||
Other comprehensive income (loss) before reclassifications | ( | ) | ( | ) | ( | ) | ( | ) | ||||||||||||
Amounts reclassified from accumulated other comprehensive income (loss) | ||||||||||||||||||||
Net current period other comprehensive income (loss) | ( | ) | ( | ) | ( | ) | ( | ) | ||||||||||||
Balance as of December 31, 2018 | $ | ( | ) | $ | ( | ) | $ | ( | ) | $ | ( | ) | $ | ( | ) | |||||
Balance as of June 30, 2019 | $ | ( | ) | $ | ( | ) | $ | ( | ) | $ | ( | ) | $ | ( | ) | |||||
Other comprehensive income (loss) before reclassifications | ( | ) | ( | ) | ( | ) | ||||||||||||||
Amounts reclassified from accumulated other comprehensive income (loss) | ||||||||||||||||||||
Net current period other comprehensive income (loss) | ( | ) | ||||||||||||||||||
Balance as of December 31, 2019 | $ | ( | ) | $ | ( | ) | $ | ( | ) | $ | ( | ) | $ | ( | ) |
Three Months Ended December 31, | Six Months Ended December 31, | |||||||||||||||
($ in millions) | 2019 | 2018 | 2019 | 2018 | ||||||||||||
Amortization of pension: | ||||||||||||||||
Amortization of prior service credit | $ | ( | ) | $ | ( | ) | $ | ( | ) | $ | ( | ) | ||||
Amortization of actuarial loss | ||||||||||||||||
Effect of pension settlement/curtailment | ( | ) | ( | ) | ||||||||||||
Total before tax effect | ||||||||||||||||
Tax benefit on amounts reclassified into earnings | ( | ) | ( | ) | ||||||||||||
Total net of tax | $ | $ | $ | $ | ||||||||||||
(Gains) losses on cash flow hedges: | ||||||||||||||||
Commodity contracts | $ | $ | $ | $ | ( | ) | ||||||||||
Forward exchange contracts | ||||||||||||||||
Total before tax effect | ||||||||||||||||
Tax benefit on amounts reclassified into earnings | ( | ) | ( | ) | ||||||||||||
Total net of tax | $ | $ | $ | $ | ||||||||||||
(Gains) losses on foreign currency translation: | ||||||||||||||||
Foreign currency translation adjustment (1) | $ | $ | $ | $ | ||||||||||||
Total before tax effect | ||||||||||||||||
Tax benefit on amounts reclassified into earnings | ||||||||||||||||
Total net of tax | $ | $ | $ | $ |
(1) | During the first fiscal quarter of 2020, the Company recorded a loss on the sale of the EC Remedy of $ |
Three Months Ended December 31, | Six Months Ended December 31, | |||||||||||||||
($ in millions) | 2019 | 2018 | 2019 | 2018 | ||||||||||||
Sales including intersegment sales | ||||||||||||||||
Flexibles | $ | $ | $ | $ | ||||||||||||
Rigid Packaging | ||||||||||||||||
Other | ||||||||||||||||
Total sales including intersegment sales | ||||||||||||||||
Intersegment sales | ||||||||||||||||
Flexibles | ||||||||||||||||
Rigid Packaging | ||||||||||||||||
Other | ||||||||||||||||
Total intersegment sales | ||||||||||||||||
Net sales | $ | $ | $ | $ | ||||||||||||
Adjusted EBIT from continuing operations | ||||||||||||||||
Flexibles | $ | $ | $ | $ | ||||||||||||
Rigid Packaging | ||||||||||||||||
Other | ( | ) | ( | ) | ( | ) | ( | ) | ||||||||
Adjusted EBIT from continuing operations | ||||||||||||||||
Less: Material restructuring programs (1) | ( | ) | ( | ) | ( | ) | ( | ) | ||||||||
Less: Impairments in equity method investments (2) | ( | ) | ( | ) | ||||||||||||
Less: Material acquisition costs and other (3) | ( | ) | ( | ) | ( | ) | ( | ) | ||||||||
Less: Amortization of acquired intangible assets from business combinations (4) | ( | ) | ( | ) | ( | ) | ( | ) | ||||||||
Add/(Less): Economic net investment hedging activities not qualifying for hedge accounting (5) | ||||||||||||||||
Less: Impact of hyperinflation (6) | ( | ) | ( | ) | ( | ) | ( | ) | ||||||||
Add: Net legal settlements (7) | ||||||||||||||||
EBIT from continuing operations | ||||||||||||||||
Interest income | ||||||||||||||||
Interest expense | ( | ) | ( | ) | ( | ) | ( | ) | ||||||||
Equity in (income) loss of affiliated companies, net of tax | ( | ) | ( | ) | ||||||||||||
Income from continuing operations before income taxes and equity in income (loss) of affiliated companies | $ | $ | $ | $ |
(1) | Material restructuring programs includes the 2018 Rigid Packaging Restructuring Plan and the 2019 Bemis Integration Plan for the three and six months ended December 31, 2019. For the three and six months ended December 31, 2018, material restructuring plans include the 2018 Rigid Packaging Restructuring Plan. Refer to Note 5, "Restructuring Plans," for more information about the Company's restructuring plans. |
(2) | Impairments in equity method investments includes the impairment charges related to other-than-temporary impairments related to the investment in AMVIG. |
(3) | Material acquisition costs and other includes $ |
(4) | Amortization of acquired intangible assets from business combinations includes amortization expenses related to all acquired intangible assets from acquisitions impacting the periods presented, including $ |
(5) | Economic net investment hedging activities not qualifying for hedge accounting includes the exchange rate movements on external loans not deemed to be effective net investment hedging instruments resulting from the our conversion to U.S. GAAP from Australian Accounting Standards ("AAS") recognized in other non-operating income (loss), net. |
(6) | Impact of hyperinflation includes the adverse impact of highly inflationary accounting for subsidiaries in Argentina where the functional currency was the Argentine Peso. |
(7) | Net legal settlements includes the impact of significant legal settlements after associated costs. |
Three Months Ended December 31, | Six Months Ended December 31, | |||||||||||||||
($ in millions) | 2019 | 2018 | 2019 | 2018 | ||||||||||||
North America | $ | $ | $ | $ | ||||||||||||
Latin America | ||||||||||||||||
Europe | ||||||||||||||||
Asia Pacific | ||||||||||||||||
Net sales | $ | $ | $ | $ |
Three Months Ended December 31, | Six Months Ended December 31, | |||||||||||||||
(in millions, except per share amounts) | 2019 | 2018 | 2019 | 2018 | ||||||||||||
Numerator | ||||||||||||||||
Net income attributable to Amcor plc | $ | $ | $ | $ | ||||||||||||
Distributed and undistributed earnings attributable to shares to be repurchased | ( | ) | ( | ) | ( | ) | ||||||||||
Net income available to ordinary shareholders of Amcor plc—basic and diluted | $ | $ | $ | $ | ||||||||||||
Net income available to ordinary shareholders of Amcor plc from continuing operations—basic and diluted | $ | $ | $ | $ | ||||||||||||
Net income available to ordinary shareholders of Amcor plc from discontinued operations—basic and diluted | $ | $ | $ | ( | ) | $ | ||||||||||
Denominator | ||||||||||||||||
Weighted-average ordinary shares outstanding | ||||||||||||||||
Weighted-average ordinary shares to be repurchased by Amcor plc | ( | ) | ( | ) | ( | ) | ( | ) | ||||||||
Weighted-average ordinary shares outstanding for EPS—basic | ||||||||||||||||
Effect of dilutive shares | ||||||||||||||||
Weighted-average ordinary shares outstanding for EPS—diluted | ||||||||||||||||
Per ordinary share income | ||||||||||||||||
Income from continuing operations | $ | $ | $ | $ | ||||||||||||
Income from discontinued operations | ( | ) | ||||||||||||||
Basic earnings per ordinary share | $ | $ | $ | $ | ||||||||||||
Income from continuing operations | $ | $ | $ | $ | ||||||||||||
Income from discontinued operations | ( | ) | ||||||||||||||
Diluted earnings per ordinary share | $ | $ | $ | $ |
Three Months Ended December 31, | Six Months Ended December 31, | |||||||||||||||||||||||||||
($ in millions, except per share amounts) | 2019 | 2018 | 2019 | 2018 | ||||||||||||||||||||||||
Net sales | $ | 3,043.1 | 100.0 | % | $ | 2,285.4 | 100.0 | % | $ | 6,183.8 | 100.0 | % | $ | 4,545.6 | 100.0 | % | ||||||||||||
Cost of Sales | (2,425.8 | ) | (79.7 | %) | (1,832.4 | ) | (80.2 | %) | (5,019.8 | ) | (81.2 | %) | (3,701.0 | ) | (81.4 | %) | ||||||||||||
Gross profit | 617.3 | 20.3 | % | 453.0 | 19.8 | % | 1,164.0 | 18.8 | % | 844.6 | 18.6 | % | ||||||||||||||||
Operating expenses: | ||||||||||||||||||||||||||||
Selling, general, and administrative expenses | (308.3 | ) | (10.1 | %) | (205.3 | ) | (9.0 | %) | (680.2 | ) | (11.0 | %) | (403.6 | ) | (8.9 | %) | ||||||||||||
Research and development expenses | (23.5 | ) | (0.8 | %) | (17.3 | ) | (0.8 | %) | (49.4 | ) | (0.8 | %) | (31.5 | ) | (0.7 | %) | ||||||||||||
Restructuring and related expenses | (24.1 | ) | (0.8 | %) | (39.9 | ) | (1.7 | %) | (41.7 | ) | (0.7 | %) | (52.4 | ) | (1.2 | %) | ||||||||||||
Other income, net | 10.9 | 0.4 | % | 31.0 | 1.4 | % | 20.2 | 0.3 | % | 41.9 | 0.9 | % | ||||||||||||||||
Operating income | 272.3 | 8.9 | % | 221.5 | 9.7 | % | 412.9 | 6.7 | % | 399.0 | 8.8 | % | ||||||||||||||||
Interest income | 6.3 | 0.2 | % | 5.2 | 0.2 | % | 13.0 | 0.2 | % | 8.1 | 0.2 | % | ||||||||||||||||
Interest expense | (52.3 | ) | (1.7 | %) | (52.1 | ) | (2.3 | %) | (112.0 | ) | (1.8 | %) | (108.4 | ) | (2.4 | %) | ||||||||||||
Other non-operating income (loss), net | 4.4 | 0.1 | % | 5.7 | 0.2 | % | 12.0 | 0.2 | % | 3.1 | 0.1 | % | ||||||||||||||||
Income from continuing operations before income taxes and equity in income (loss) of affiliated companies | 230.7 | 7.6 | % | 180.3 | 7.9 | % | 325.9 | 5.3 | % | 301.8 | 6.6 | % | ||||||||||||||||
Income tax expense | (45.1 | ) | (1.5 | %) | (31.1 | ) | (1.4 | %) | (66.9 | ) | (1.1 | %) | (52.8 | ) | (1.2 | %) | ||||||||||||
Equity in income (loss) of affiliated companies | 2.2 | 0.1 | % | (8.6 | ) | (0.4 | %) | 4.5 | 0.1 | % | (6.9 | ) | (0.2 | %) | ||||||||||||||
Income from continuing operations | 187.8 | 6.2 | % | 140.6 | 6.2 | % | 263.5 | 4.3 | % | 242.1 | 5.3 | % | ||||||||||||||||
Income (loss) from discontinued operations | — | — | % | — | — | % | (7.7 | ) | (0.1 | %) | — | — | % | |||||||||||||||
Net income | $ | 187.8 | 6.2 | % | $ | 140.6 | 6.2 | % | $ | 255.8 | 4.1 | % | $ | 242.1 | 5.3 | % | ||||||||||||
Net (income) loss attributable to non-controlling interests | (2.2 | ) | (0.1 | %) | (2.0 | ) | (0.1 | %) | (4.2 | ) | (0.1 | %) | (5.1 | ) | (0.1 | %) | ||||||||||||
Net income attributable to Amcor plc | $ | 185.6 | 6.1 | % | $ | 138.6 | 6.1 | % | $ | 251.6 | 4.1 | % | $ | 237.0 | 5.2 | % |
Three Months Ended December 31, | ||||||||
($ in millions) | 2019 | 2018 | ||||||
Net sales | $ | 3,043.1 | $ | 2,285.4 | ||||
Operating income | 272.3 | 221.5 | ||||||
Operating profit as a percentage of net sales | 8.9 | % | 9.7 | % | ||||
Net income attributable to Amcor plc | $ | 185.6 | $ | 138.6 | ||||
Diluted EPS | $ | 0.115 | $ | 0.120 |
Three Months Ended December 31, | ||||||||
($ in millions) | 2019 | 2018 | ||||||
Net sales including intersegment sales | $ | 2,414.7 | $ | 1,608.2 | ||||
Adjusted EBIT from continuing operations | 329.4 | 211.4 | ||||||
Adjusted EBIT from continuing operations as a percentage of net sales | 13.6 | % | 13.1 | % |
Three Months Ended December 31, | ||||||||
($ in millions) | 2019 | 2018 | ||||||
Net sales including intersegment sales | $ | 629.2 | $ | 677.6 | ||||
Adjusted EBIT from continuing operations | 59.5 | 80.2 | ||||||
Adjusted EBIT from continuing operations as a percentage of net sales | 9.5 | % | 11.8 | % |
Three Months Ended December 31, | ||||||||
($ in millions) | 2019 | 2018 | ||||||
Gross profit | $ | 617.3 | $ | 453.0 | ||||
Gross profit as a percentage of net sales | 20.3 | % | 19.8 | % |
Three Months Ended December 31, | ||||||||
($ in millions) | 2019 | 2018 | ||||||
SG&A expenses | $ | (308.3 | ) | $ | (205.3 | ) | ||
SG&A expenses as a percentage of net sales | (10.1 | %) | (9.0 | %) |
Three Months Ended December 31, | ||||||||
($ in millions) | 2019 | 2018 | ||||||
R&D expenses | $ | (23.5 | ) | $ | (17.3 | ) | ||
R&D expenses as a percentage of net sales | (0.8 | %) | (0.8 | %) |
Three Months Ended December 31, | ||||||||
($ in millions) | 2019 | 2018 | ||||||
Restructuring and related expenses | $ | (24.1 | ) | $ | (39.9 | ) | ||
Restructuring and related expenses as a percentage of net sales | (0.8 | %) | (1.7 | %) |
Three Months Ended December 31, | ||||||||
($ in millions) | 2019 | 2018 | ||||||
Other income, net | $ | 10.9 | $ | 31.0 | ||||
Other income, net, as a percentage of net sales | 0.4 | % | 1.4 | % |
Three Months Ended December 31, | ||||||||
($ in millions) | 2019 | 2018 | ||||||
Interest income | $ | 6.3 | $ | 5.2 | ||||
Interest income as a percentage of net sales | 0.2 | % | 0.2 | % |
Three Months Ended December 31, | ||||||||
($ in millions) | 2019 | 2018 | ||||||
Interest expense | $ | (52.3 | ) | $ | (52.1 | ) | ||
Interest expense as a percentage of net sales | (1.7 | %) | (2.3 | %) |
Three Months Ended December 31, | ||||||||
($ in millions) | 2019 | 2018 | ||||||
Other non-operating income (loss), net | $ | 4.4 | $ | 5.7 | ||||
Other non-operating income (loss), net, as a percentage of net sales | 0.1 | % | 0.2 | % |
Six Months Ended December 31, | ||||||||
($ in millions) | 2019 | 2018 | ||||||
Net sales | $ | 6,183.8 | $ | 4,545.6 | ||||
Operating income | 412.9 | 399.0 | ||||||
Operating profit as a percentage of net sales | 6.7 | % | 8.8 | % | ||||
Net income attributable to Amcor plc | $ | 251.6 | $ | 237.0 | ||||
Diluted EPS | $ | 0.155 | $ | 0.204 |
Six Months Ended December 31, | ||||||||
($ in millions) | 2019 | 2018 | ||||||
Net sales including intersegment sales | $ | 4,845.5 | $ | 3,142.0 | ||||
Adjusted EBIT from continuing operations | 619.9 | 368.9 | ||||||
Adjusted EBIT from continuing operations as a percentage of net sales | 12.8 | % | 11.6 | % |
Six Months Ended December 31, | ||||||||
($ in millions) | 2019 | 2018 | ||||||
Net sales including intersegment sales | $ | 1,339.8 | $ | 1,404.3 | ||||
Adjusted EBIT from continuing operations | 130.0 | 148.5 | ||||||
Adjusted EBIT from continuing operations as a percentage of net sales | 9.7 | % | 10.6 | % |
Six Months Ended December 31, | ||||||||
($ in millions) | 2019 | 2018 | ||||||
Gross profit | $ | 1,164.0 | $ | 844.6 | ||||
Gross profit as a percentage of net sales | 18.8 | % | 18.6 | % |
Six Months Ended December 31, | ||||||||
($ in millions) | 2019 | 2018 | ||||||
SG&A expenses | $ | (680.2 | ) | $ | (403.6 | ) | ||
SG&A expenses as a percentage of net sales | (11.0 | %) | (8.9 | %) |
Six Months Ended December 31, | ||||||||
($ in millions) | 2019 | 2018 | ||||||
R&D expenses | $ | (49.4 | ) | $ | (31.5 | ) | ||
R&D expenses as a percentage of net sales | (0.8 | %) | (0.7 | %) |
Six Months Ended December 31, | ||||||||
($ in millions) | 2019 | 2018 | ||||||
Restructuring and related expenses | $ | (41.7 | ) | $ | (52.4 | ) | ||
Restructuring and related expenses as a percentage of net sales | (0.7 | %) | (1.2 | %) |
Six Months Ended December 31, | ||||||||
($ in millions) | 2019 | 2018 | ||||||
Other income, net | $ | 20.2 | $ | 41.9 | ||||
Other income, net, as a percentage of net sales | 0.3 | % | 0.9 | % |
Six Months Ended December 31, | ||||||||
($ in millions) | 2019 | 2018 | ||||||
Interest income | $ | 13.0 | $ | 8.1 | ||||
Interest income as a percentage of net sales | 0.2 | % | 0.2 | % |
Six Months Ended December 31, | ||||||||
($ in millions) | 2019 | 2018 | ||||||
Interest expense | $ | (112.0 | ) | $ | (108.4 | ) | ||
Interest expense as a percentage of net sales | (1.8 | %) | (2.4 | %) |
Six Months Ended December 31, | ||||||||
($ in millions) | 2019 | 2018 | ||||||
Other non-operating income (loss), net | $ | 12.0 | $ | 3.1 | ||||
Other non-operating income (loss), net, as a percentage of net sales | 0.2 | % | 0.1 | % |
Six Months Ended December 31, | ||||||||
($ in millions) | 2019 | 2018 | ||||||
Income tax expense | $ | (66.9 | ) | $ | (52.8 | ) | ||
Effective income tax rate | 20.5 | % | 17.5 | % |
Three Months Ended December 31, | Six Months Ended December 31, | |||||||||||||||
($ in millions) | 2019 | 2018 | 2019 | 2018 | ||||||||||||
Net income attributable to Amcor plc, as reported | $ | 185.6 | $ | 138.6 | $ | 251.6 | $ | 237.0 | ||||||||
Add: Net income (loss) attributable to non-controlling interests | 2.2 | 2.0 | 4.2 | 5.1 | ||||||||||||
Less: (Income) loss from discontinued operations, net of tax | — | — | 7.7 | — | ||||||||||||
Income from continuing operations | 187.8 | 140.6 | 263.5 | 242.1 | ||||||||||||
Add: Income tax expense | 45.1 | 31.1 | 66.9 | 52.8 | ||||||||||||
Add: Interest expense | 52.3 | 52.1 | 112.0 | 108.4 | ||||||||||||
Less: Interest income | (6.3 | ) | (5.2 | ) | (13.0 | ) | (8.1 | ) | ||||||||
EBIT from continuing operations | 278.9 | 218.6 | 429.4 | 395.2 | ||||||||||||
Add: Material restructuring programs (1) | 23.4 | 27.6 | 40.7 | 37.7 | ||||||||||||
Add: Impairments in equity method investments (2) | — | 11.4 | — | 13.9 | ||||||||||||
Add: Material acquisition costs and other (3) | 17.7 | 29.8 | 101.2 | 35.1 | ||||||||||||
Add: Amortization of acquired intangible assets from business combinations (4) | 40.9 | 4.7 | 109.2 | 9.5 | ||||||||||||
Add/(Less): Economic net investment hedging activities not qualifying for hedge accounting (5) | — | (4.2 | ) | — | (1.5 | ) | ||||||||||
Add: Impact of hyperinflation (6) | 3.1 | 9.6 | 18.5 | 19.0 | ||||||||||||
Less: Net legal settlements (7) | — | (15.5 | ) | — | (15.5 | ) | ||||||||||
Adjusted EBIT from continuing operations | 364.0 | 282.0 | 699.0 | 493.4 | ||||||||||||
Less: Income tax expense | (45.1 | ) | (31.1 | ) | (66.9 | ) | (52.8 | ) | ||||||||
Add: Adjustments to income tax expense (8) | (15.9 | ) | (9.2 | ) | (56.1 | ) | (14.4 | ) | ||||||||
Less: Interest expense | (52.3 | ) | (52.1 | ) | (112.0 | ) | (108.4 | ) | ||||||||
Add: Interest income | 6.3 | 5.2 | 13.0 | 8.1 | ||||||||||||
Less: Net (income) loss attributable to non-controlling interests | (2.2 | ) | (2.0 | ) | (4.2 | ) | (5.1 | ) | ||||||||
Adjusted net income from continuing operations | $ | 254.8 | $ | 192.8 | $ | 472.8 | $ | 320.8 |
(1) | Material restructuring programs includes the 2018 Rigid Packaging Restructuring Plan and the 2019 Bemis Integration Plan for the three and six months ended December 31, 2019. For the three and six months ended December 31, 2018, material restructuring plans include the 2018 Rigid Packaging Restructuring Plan. Refer to Note 5, "Restructuring Plans" of "Item 1. Financial Statements - Notes to Condensed Consolidated Financial Statements," for more information about our restructuring plans. |
(2) | Impairments in equity method investments includes the impairment charges related to other-than-temporary impairments related to the investment in AMVIG. |
(3) | Material acquisition costs and other includes $58.0 million amortization of Bemis acquisition related inventory fair value step-up and $43.2 million of Bemis transaction related costs and integration costs not qualifying as exit costs for the six months ended December 31, 2019. |
(4) | Amortization of acquired intangible assets from business combinations includes amortization expenses related to all acquired intangible assets from acquisitions impacting the periods presented, including $26.4 million of sales backlog amortization for the six months ended December 31, 2019 from the Bemis acquisition. |
(5) | Economic net investment hedging activities not qualifying for hedge accounting includes the exchange rate movements on external loans not deemed to be effective net investment hedging instruments resulting from the our conversion to U.S. GAAP from Australian Accounting Standards ("AAS") recognized in other non-operating income (loss), net. |
(6) | Impact of hyperinflation includes the adverse impact of highly inflationary accounting for subsidiaries in Argentina where the functional currency was the Argentine Peso. |
(7) | Net legal settlements includes the impact of significant legal settlements after associated costs. |
(8) | Net tax impact on items (1) through (7) above. |
($ in millions) | December 31, 2019 | June 30, 2019 | ||||||
Current portion of long-term debt | $ | 4.2 | $ | 5.4 | ||||
Short-term debt | 353.0 | 788.8 | ||||||
Long-term debt, less current portion | 5,853.5 | 5,309.0 | ||||||
Total debt | 6,210.7 | 6,103.2 | ||||||
Less cash and cash equivalents | 673.8 | 601.6 | ||||||
Net debt | $ | 5,536.9 | $ | 5,501.6 |
Six Months Ended December 31, | ||||||||||||
($ in millions) | 2019 | 2018 | Change YTD 2Q 2020 vs. YTD 2Q 2019 | |||||||||
Cash flow from operating activities | $ | 342.0 | $ | 234.7 | $ | 107.3 | ||||||
Cash flow from investing activities | 194.0 | (112.9 | ) | 306.9 | ||||||||
Cash flow from financing activities | (442.1 | ) | (229.9 | ) | (212.2 | ) |
Period | Total Number of Shares Purchased (2) | Average Price Paid Per Share (2)(3) | Total Number of Shares Purchased as Part of Publicly Announced Plans or Programs | Approximate Dollar Value of Shares That May Yet Be Purchased Under the Programs (1) | ||||||||||
October 1 - 31, 2019 | — | $ | — | — | $ | 441.8 | ||||||||
November 1 - 30, 2019 | 7,556 | 10.03 | 7,547 | 366.1 | ||||||||||
December 1 - 31, 2019 | 8,637 | 10.33 | 8,547 | 277.8 | ||||||||||
Total | 16,193 | $ | 10.19 | 16,094 |
(1) | On August 20, 2019, our Board of Directors approved an on-market buy-back program of $500 million of ordinary shares and CHESS Depositary Instruments ("CDIs"). Board authorizations remain in effect until shares in the amount authorized thereunder have been repurchased. |
(2) | Includes shares purchased on the open market to satisfy the vesting and exercises of share-based compensation awards. |
(3) | Includes shares purchased on the open market to satisfy the vesting and exercises of share-based compensation awards. Average price paid per share excludes costs associated with the repurchase. |
Exhibit | Description | Form of Filing | ||
3.1 | Incorporation by Reference | |||
3.2 | Incorporation by Reference | |||
31.1 | Filed Herewith | |||
31.2 | Filed Herewith | |||
32 | Furnished Herewith | |||
101.INS | XBRL Instance Document - the instance document does not appear in the Interactive Data file because its XBLR tags are embedded within the Inline XBRL document. | Filed Electronically | ||
101.SCH | XBRL Taxonomy Extension Schema Document. | Filed Electronically | ||
101.CAL | XBRL Taxonomy Extension Calculation Linkbase Document. | Filed Electronically | ||
101.DEF | XBRL Taxonomy Extension Definition Linkbase Document. | Filed Electronically | ||
101.LAB | XBRL Taxonomy Extension Label Linkbase Document. | Filed Electronically | ||
101.PRE | XBRL Taxonomy Extension Presentation Linkbase Document. | Filed Electronically | ||
104 | Cover Page Interactive File (formatted as Inline XBRL and contained in Exhibit 101). | Filed Electronically |
AMCOR PLC | |||
Date | February 11, 2020 | By | /s/ Michael Casamento |
Michael Casamento, Executive Vice President and Chief Financial Officer |
1. | I have reviewed this Quarterly Report on Form 10-Q of Amcor plc; |
2. | Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report; |
3. | Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report; |
4. | The registrant’s other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) for the registrant and have: |
a) | Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared; |
b) | Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and |
c) | Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and |
5. | The registrant’s other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions): |
a) | All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and |
b) | Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting. |
Date | February 11, 2020 | /s/ Ronald Delia | |
Ronald Delia, Managing Director and Chief Executive Officer |
1. | I have reviewed this Quarterly Report on Form 10-Q of Amcor plc; |
2. | Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report; |
3. | Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report; |
4. | The registrant’s other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) for the registrant and have: |
a) | Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared; |
b) | Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and |
c) | Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and |
5. | The registrant’s other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions): |
a) | All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and |
b) | Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting. |
Date | February 11, 2020 | /s/ Michael Casamento | |
Michael Casamento, Executive Vice President and Chief Financial Officer |
/s/ Ronald Delia | /s/ Michael Casamento | ||
Ronald Delia, Managing Director and Chief Executive Officer | Michael Casamento, Executive Vice President and Chief Financial Officer | ||
Date | February 11, 2020 | Date | February 11, 2020 |
Discontinued Operations - Narrative (Details) $ in Millions |
3 Months Ended |
---|---|
Sep. 30, 2019
USD ($)
| |
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 | $ (8.8) |
Leases - Supplemental Cash Flow Information (Details) $ in Millions |
6 Months Ended |
---|---|
Dec. 31, 2019
USD ($)
| |
Leases [Abstract] | |
Operating cash flows from operating leases | $ 54.4 |
Operating lease assets obtained in exchange for lease obligations | 47.1 |
Finance lease assets obtained in exchange for lease obligations | $ 0.8 |
Components of Net Periodic Benefit Cost (Details) - USD ($) $ in Millions |
3 Months Ended | 6 Months Ended | ||
---|---|---|---|---|
Dec. 31, 2019 |
Dec. 31, 2018 |
Dec. 31, 2019 |
Dec. 31, 2018 |
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Retirement Benefits [Abstract] | ||||
Service cost | $ 6.2 | $ 3.9 | $ 12.4 | $ 7.8 |
Interest cost | 12.3 | 6.7 | 24.6 | 13.4 |
Expected return on plan assets | (18.0) | (8.2) | (36.0) | (16.6) |
Amortization of net loss | 1.5 | 1.0 | 3.0 | 2.0 |
Amortization of prior service credit | (0.4) | (0.5) | (0.8) | (1.0) |
Curtailment credit | 0.0 | (0.3) | 0.0 | (0.3) |
Net periodic benefit cost | $ 1.6 | $ 2.6 | $ 3.2 | $ 5.3 |
Nature of Operations and Basis of Presentation |
6 Months Ended |
---|---|
Dec. 31, 2019 | |
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 50,000 people across approximately 250 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 of normal recurring accruals) have been made which are necessary for a fair statement of its financial position, results of operations and cash flows. For further information, this Form 10-Q should be read in conjunction with the Consolidated Financial Statements and accompanying Notes in the Company's Annual Report on Form 10-K for the fiscal year ended June 30, 2019. The Company reclassified prior year comparative figures in the condensed consolidated statement of cash flows to conform to the current year's presentation. In addition, the Company reclassified certain prior year comparative figures from interest expense to net sales to conform to the current year’s presentation. This change in presentation did not have an impact on the Company’s financial condition or operating results.
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Condensed Consolidated Balance Sheet (Parenthetical) - $ / shares shares in Millions |
Dec. 31, 2019 |
Jun. 30, 2019 |
---|---|---|
Statement of Financial Position [Abstract] | ||
Ordinary shares, par value per share | $ 0.01 | $ 0.01 |
Ordinary shares, authorized shares | 9,000.0 | 9,000.0 |
Ordinary shares, issued shares | 1,604.0 | 1,625.9 |
Treasury shares | 1.1 | 1.4 |
Segments |
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Segment Reporting [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Segments | Note 14 - 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 equity method investments, including AMVIG, undistributed corporate expenses, intercompany eliminations and other business activities. Operating segments are organized along the Company's product lines and geographical areas. In conjunction with the acquisition of Bemis, the Company reassessed its segment reporting structure in the first fiscal quarter of 2020 and elected to disaggregate the Flexibles Americas operating segment into Flexibles North America and Flexibles Latin America. The five Flexibles operating segments (Flexibles Europe, Middle East and Africa; Flexibles North America, Flexibles Latin America; Flexibles Asia Pacific and Specialty Cartons) have been aggregated in the Flexibles reporting segment as they exhibit similarity in long-term forecasted economic characteristics, similarity in the products they offer, their production technologies, the customers they serve, the nature of their service delivery models, and their regulatory environments. In the fourth quarter of fiscal year 2019, in connection with the acquisition of Bemis, the Company changed its measure of segment performance from adjusted operating income to adjusted earnings before interest and tax ("EBIT") from continuing operations. The Company's chief operating decision maker, the Global Management Team ("GMT"), evaluates performance and allocates resources based on adjusted EBIT from continuing operations. The Company defines adjusted EBIT as operating income adjusted to eliminate the impact of certain items that the Company does not consider indicative of its ongoing operating performance and to include equity in income (loss) of affiliated companies. The GMT consists of the Managing Director and Chief Executive Officer and his direct reports and provides strategic direction and management oversight of the day to day activities of the Company. The accounting policies of the reportable segments are the same as those in the consolidated financial statements. The Company also has investments in operations in AMVIG that are accounted for under the equity method of accounting and, accordingly, those results are not included in segment net sales. The following table presents information about reportable segments:
The Company does not have sales to a single customer that exceeded 10% of consolidated net sales for the three and six months ended December 31, 2019. Sales to PepsiCo, and its subsidiaries, accounted for approximately 10.2% of net sales under multiple separate contractual agreements for the six months ended December 31, 2018. The Company sells to this customer in both the Rigid Packaging and the Flexibles reportable segments. For the three months ended December 31, 2018 no single customer exceeded 10% of consolidated net sales. The following tables disaggregate net sales information by geography in which the Company operates based on manufacturing or selling operation:
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New Accounting Guidance (Policies) |
6 Months Ended |
---|---|
Dec. 31, 2019 | |
Accounting Policies [Abstract] | |
Recently Adopted Accounting Standards and Accounting Standards Not Yet Adopted | Recently Adopted Accounting Standards In February 2018, the Financial Accounting Standards Board ("FASB") issued guidance that requires the Company to disclose a description of the Company’s accounting policy for releasing income tax effects from accumulated other comprehensive income and whether the Company elects to reclassify the stranded income tax effects from the Tax Cuts and Jobs Act (‘‘The Act’’), along with information about other income tax effects that are reclassified. For all entities, the guidance was effective for fiscal years beginning after December 15, 2018 and interim periods within those fiscal years. Entities can choose whether to apply the amendments retrospectively to each period in which the effect of the Act is recognized or to apply the amendments in the period of adoption. This guidance was effective for the Company on July 1, 2019. The Company adopted the new guidance effective July 1, 2019 and did not elect the optional reclassification. In August 2017, the FASB issued guidance which simplifies existing guidance in order to allow companies to more accurately present the economic effects of risk management activities in the financial statements. For public business entities, the amendments in Accounting Standards Update ("ASU") 2017-12 were effective for financial statements issued for fiscal years beginning after December 15, 2018 and interim periods within those fiscal years. This guidance was effective for the Company on July 1, 2019 using the modified respective approach, with the exception of presentation and disclosure guidance which is adopted prospectively. Implementation of the standard did not have a material impact on the the Company's condensed consolidated financial statements. In February 2016, the FASB issued guidance that required lessees to put most leases on their balance sheets but recognize expenses on their income statements in a manner similar to past accounting guidance. The guidance also eliminates the previous real estate-specific provisions and changes the guidance on sale-leaseback transactions, initial direct costs and lease executory costs for all entities. Lease classification will determine how to recognize lease-related revenue and expense. The Company adopted the new lease standard at July 1, 2019 using a simplified transition option that allows for a cumulative-effect adjustment in the period of adoption and therefore did not restate prior periods. The Company also elected to adopt the package of practical expedients which allows for existing operating leases to continue to be classified as operating leases under the new guidance without reassessing whether the contracts contain a lease under the new guidance or whether classification of the operating lease would be different under the new standard. The Company did not elect the use-of-hindsight practical expedient but did adopt the practical expedient pertaining to land easements which provides the option not to reassess whether land easements not previously accounted for as leases under prior leasing guidance would be leases under the new guidance. Accounting Standards Not Yet Adopted In June 2016, the FASB issued guidance which requires 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. 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 guidance affects 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. For public business entities, the amendments in this update are effective for fiscal years beginning after December 15, 2019, including interim periods within those fiscal years. The guidance will be effective for the Company on July 1, 2020 and will be adopted using the modified retrospective approach. The Company is currently assessing the impact that the adoption of this new guidance will have on its condensed consolidated financial statements. 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. Accordingly, the guidance will be effective for the Company on July 1, 2021. The Company is currently evaluating the impact that this guidance will have on its financial statements and related disclosures. 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.
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Leases | The Company has operating leases for certain manufacturing sites, office space, warehouses, land, vehicles and equipment. Most leases include the option to renew, with renewal terms that can extend the lease term from one to five years or more. Right-of-use lease assets and lease liabilities are recognized at the commencement date based on the present value of the remaining lease payments over the lease term, which includes renewal periods the Company is reasonably certain to exercise. Short term leases with a term of twelve months or less, including reasonably certain holding periods, are not recorded on the balance sheet. The Company's leases do not contain any material residual value guarantees or material restrictive covenants. At December 31, 2019, the Company does not have material lease commitments that have not commenced.
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New Accounting Guidance |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Accounting Policies [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
New Accounting Guidance | New Accounting Guidance Recently Adopted Accounting Standards In February 2018, the Financial Accounting Standards Board ("FASB") issued guidance that requires the Company to disclose a description of the Company’s accounting policy for releasing income tax effects from accumulated other comprehensive income and whether the Company elects to reclassify the stranded income tax effects from the Tax Cuts and Jobs Act (‘‘The Act’’), along with information about other income tax effects that are reclassified. For all entities, the guidance was effective for fiscal years beginning after December 15, 2018 and interim periods within those fiscal years. Entities can choose whether to apply the amendments retrospectively to each period in which the effect of the Act is recognized or to apply the amendments in the period of adoption. This guidance was effective for the Company on July 1, 2019. The Company adopted the new guidance effective July 1, 2019 and did not elect the optional reclassification. In August 2017, the FASB issued guidance which simplifies existing guidance in order to allow companies to more accurately present the economic effects of risk management activities in the financial statements. For public business entities, the amendments in Accounting Standards Update ("ASU") 2017-12 were effective for financial statements issued for fiscal years beginning after December 15, 2018 and interim periods within those fiscal years. This guidance was effective for the Company on July 1, 2019 using the modified respective approach, with the exception of presentation and disclosure guidance which is adopted prospectively. Implementation of the standard did not have a material impact on the the Company's condensed consolidated financial statements. In February 2016, the FASB issued guidance that required lessees to put most leases on their balance sheets but recognize expenses on their income statements in a manner similar to past accounting guidance. The guidance also eliminates the previous real estate-specific provisions and changes the guidance on sale-leaseback transactions, initial direct costs and lease executory costs for all entities. Lease classification will determine how to recognize lease-related revenue and expense. The Company adopted the new lease standard at July 1, 2019 using a simplified transition option that allows for a cumulative-effect adjustment in the period of adoption and therefore did not restate prior periods. The Company also elected to adopt the package of practical expedients which allows for existing operating leases to continue to be classified as operating leases under the new guidance without reassessing whether the contracts contain a lease under the new guidance or whether classification of the operating lease would be different under the new standard. The Company did not elect the use-of-hindsight practical expedient but did adopt the practical expedient pertaining to land easements which provides the option not to reassess whether land easements not previously accounted for as leases under prior leasing guidance would be leases under the new guidance. Adoption of the new leasing standard resulted in the following impacts to the Company's unaudited condensed consolidated financial statements as of the adoption date: the establishment of a lease liability of $590.5 million, including current portion, a corresponding right-of-use asset of $569.8 million, and the reclassification of approximately $58.2 million (net of tax) of deferred gains on sale leaseback transactions. The complete impact of the changes made to the Company's unaudited condensed consolidated balance sheet due to the adoption of the new leasing guidance were as follows:
Due to the adoption of the guidance using the simplified transition option, there are no changes to the Company's previously reported results prior to July 1, 2019. Lease expense is not expected to change materially as a result of adoption of the new guidance. The Company changed its disclosures related to leasing beginning in fiscal year 2020. Refer to Note 10, "Leases". Accounting Standards Not Yet Adopted In June 2016, the FASB issued guidance which requires 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. 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 guidance affects 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. For public business entities, the amendments in this update are effective for fiscal years beginning after December 15, 2019, including interim periods within those fiscal years. The guidance will be effective for the Company on July 1, 2020 and will be adopted using the modified retrospective approach. The Company is currently assessing the impact that the adoption of this new guidance will have on its condensed consolidated financial statements. 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. Accordingly, the guidance will be effective for the Company on July 1, 2021. The Company is currently evaluating the impact that this guidance will have on its financial statements and related disclosures. 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.
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Dec. 31, 2019 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Inventory Disclosure [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Inventories, Net | Inventories, Net Inventories, net are summarized as follows:
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Leases |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Dec. 31, 2019 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Leases [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Leases | Leases The Company has operating leases for certain manufacturing sites, office space, warehouses, land, vehicles and equipment. Most leases include the option to renew, with renewal terms that can extend the lease term from one to five years or more. Right-of-use lease assets and lease liabilities are recognized at the commencement date based on the present value of the remaining lease payments over the lease term, which includes renewal periods the Company is reasonably certain to exercise. Short term leases with a term of twelve months or less, including reasonably certain holding periods, are not recorded on the balance sheet. The Company's leases do not contain any material residual value guarantees or material restrictive covenants. At December 31, 2019, the Company does not have material lease commitments that have not commenced. The components of lease expense were as follows:
Lease costs for finance leases were immaterial for the three and six months ended December 31, 2019. Supplemental balance sheet information related to leases was as follows:
As the Company's leases do not provide an implicit rate, the Company uses its incremental borrowing rate as of the commencement date to determine the present value of lease payments. Supplemental cash flow information related to leases was as follows:
Maturities of lease liabilities were as follows:
The Company’s future minimum lease commitments as of June 30, 2019, under Accounting Standard Codification Topic 840, the predecessor to Topic 842, are as follows:
The weighted average remaining lease term and discount rate are as follows:
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Shareholders' Equity (Tables) |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Dec. 31, 2019 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Equity [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Changes in Ordinary and Treasury Shares | The changes in ordinary and treasury shares during the six months ended December 31, 2019 and 2018 were as follows:
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Schedule of Accumulated Other Comprehensive Income (Loss) | The changes in the components of accumulated other comprehensive income (loss) during the six months ended December 31, 2019 and 2018 were as follows:
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Schedule of Reclassifications Out of Accumulated Other Comprehensive Income (Loss) | The following tables provide details of amounts reclassified from accumulated other comprehensive income (loss):
(1) During the first fiscal quarter of 2020, the Company recorded a loss on the sale of the EC Remedy of $8.8 million, which is the result of the reclassification of accumulated foreign currency translation amounts from accumulated other comprehensive income to earnings. Refer to Note 4, "Discontinued Operations" for more information.
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Fair Value Measurements (Tables) |
6 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Dec. 31, 2019 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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:
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Schedule of Fair Value of Instruments Measured on Recurring Basis | The following table summarizes the fair value of these instruments, which are measured at fair value on a recurring basis, by level, within the fair value hierarchy:
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Inventories, Net (Details) - USD ($) $ in Millions |
Dec. 31, 2019 |
Jun. 30, 2019 |
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Inventory Disclosure [Abstract] | ||
Raw materials and supplies | $ 850.4 | $ 864.6 |
Work in process and finished goods | 1,137.6 | 1,180.9 |
Less: inventory reserves | (96.2) | (91.7) |
Total inventories, net | $ 1,891.8 | $ 1,953.8 |
Fair Value Measurements - Carrying Value and Fair Value of Long-Term Debt (Details) - USD ($) $ in Millions |
Dec. 31, 2019 |
Jun. 30, 2019 |
---|---|---|
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Total long-term debt with fixed interest rates (excluding commercial paper and capital leases) | $ 2,537.0 | $ 2,955.6 |
Level 2 | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Total long-term debt with fixed interest rates (excluding commercial paper and capital leases) | $ 2,633.2 | $ 3,041.3 |
Contingencies and Legal Proceedings (Details) $ in Millions |
3 Months Ended | |
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Dec. 31, 2019
USD ($)
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Jun. 30, 2019
USD ($)
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Commitments and Contingencies Disclosure [Abstract] | ||
Loss Contingency Accrual, Provision | $ 15.9 | $ 16.4 |
Loss Contingency, Estimate of Possible Loss | 26.4 | $ 23.7 |
Loss Contingency, Letters of Credit | 43.6 | |
Loss Contingency, Cash Deposited | $ 13.5 | |
Number of Shareholders In Lawsuit Notification | 2 | |
Number of Lawsuits | 2 |
Components of Net Periodic Benefit Cost |
6 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Retirement Benefits [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Components of Net Periodic Benefit Cost | Components of Net Periodic Benefit Cost Net periodic benefit cost for benefit plans include the following components:
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 (loss), net.
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Acquisitions |
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Business Combinations [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Acquisitions | Acquisitions Bemis Company, Inc. On June 11, 2019, the Company completed the acquisition of 100% of the outstanding shares of Bemis Company, Inc ("Bemis"), a global manufacturer of flexible packaging products based in the United States. Pursuant to the Transaction Agreement, dated as of August 6, 2018, each outstanding share of Bemis common stock that was issued and outstanding upon completion of the transaction was converted into the right to receive 5.1 ordinary shares of the Company traded on the New York Stock Exchange ("NYSE"). The following table summarizes the fair value of consideration exchanged:
The acquisition of Bemis positions the Company as a global leader in consumer packaging with a comprehensive global footprint in flexible packaging and greater scale in key regions of North America, Latin America, Asia Pacific and Europe, along with industry-leading research and development capabilities. The acquisition of Bemis was accounted for as a business combination in accordance with ASC 805, "Business Combinations," which required allocation of the purchase price to the estimated fair values of assets acquired and liabilities assumed in the transaction. The Company has made measurement period adjustments at December 31, 2019 resulting in a $99.8 million increase to goodwill, which includes a $162.9 million decrease to property, plant and equipment, a $98.8 million decrease to finite lived intangible assets, a $154.3 million decrease to deferred tax liabilities, along with other adjustments to assets held for sale and working capital. The Company estimated the preliminary fair value of acquired assets and liabilities as of the acquisition date based on information currently available and has adjusted those estimates primarily upon further evaluation of property and equipment acquired, and related adjustment to finite lived intangibles acquired and deferred taxes. The allocation of fair value for the assets and liabilities acquired remains preliminary given the number of global locations acquired and may continue to be adjusted up to one year after the acquisition. Accordingly, final determination of the fair values may result in further adjustments to the values presented in the following table.
The following table details the preliminary identifiable intangible assets acquired from Bemis, their fair values and estimated useful lives:
The purchase price allocation is preliminary in nature and subject to adjustments, which could be material. Any necessary adjustments will be finalized within one year from the date of acquisition. The preliminary allocation of the purchase price as of December 31, 2019 has resulted in $3,237.5 million of goodwill for the Flexibles segment, which is not tax deductible. The goodwill on acquisition represents the future economic benefit expected to arise from other intangible assets acquired that do not qualify for separate recognition, including assembled workforce and non-contractual relationships, as well as expected future synergies. As the Company finalizes the valuation of assets acquired and liabilities assumed, it will determine to which reporting units within the Company's segments any changes in goodwill should be recorded. The fair value measurement of tangible and intangible assets and liabilities was based on significant inputs not observable in the market and thus represent Level 3 measurements within the fair value measurement hierarchy. Level 3 fair market values were determined using a variety of information, including estimated future cash flows, appraisals and market comparables. Closing of the Bemis acquisition was conditional upon the receipt of regulatory approvals, approval by both Amcor and Bemis shareholders, and satisfaction of other customary conditions. In order to satisfy certain regulatory approvals, the Company was required to divest three of Bemis' medical packaging facilities located in the United Kingdom and Ireland ("EC Remedy") and three Amcor medical packaging facilities in the United States ("U.S. Remedy"). The U.S. Remedy was completed during the fourth quarter of fiscal 2019 and the Company received $214.2 million resulting in a gain of $159.1 million. The EC Remedy was completed during the first quarter of fiscal 2020 and the Company received $397.1 million and recorded a loss on the sale of $8.8 million which is the result of the reclassification of accumulated foreign currency translation amounts from accumulated other comprehensive income to earnings from discontinued operations upon sale of the EC Remedy.
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Goodwill and Other Intangible Assets |
6 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Goodwill and Intangible Assets Disclosure [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Goodwill and Other Intangible Assets | Goodwill and Other Intangible Assets Changes in the carrying amount of goodwill attributable to each reportable segment follow:
There is a $4.0 million accumulated goodwill impairment loss in the Rigid Packaging reportable segment as of December 31, 2019 and June 30, 2019. Other Intangible Assets The components of intangible assets follows:
Amortization expense for intangible assets during the three and six months ended December 31, 2019 were $45.6 million and $119.1 million, respectively, and $7.3 million and $15.4 million, respectively, for the three and six months ended December 31, 2018.
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Components of Net Periodic Benefit Cost (Tables) |
6 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Retirement Benefits [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Components of Net Benefit Costs | Net periodic benefit cost for benefit plans include the following components:
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Goodwill and Other Intangible Assets (Tables) |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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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 follow:
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Schedule of Components of Intangible Assets | The components of intangible assets follows:
(1) Other includes $14.8 million and $14.2 million for December 31, 2019 and June 30, 2019, respectively, of acquired intellectual property assets not yet being amortized as the related R&D projects have not yet been completed.
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Goodwill and Other Intangible Assets - Narrative (Details) - USD ($) $ in Millions |
3 Months Ended | 6 Months Ended | |||
---|---|---|---|---|---|
Dec. 31, 2019 |
Dec. 31, 2018 |
Dec. 31, 2019 |
Dec. 31, 2018 |
Jun. 30, 2019 |
|
Acquired Finite-Lived Intangible Assets [Line Items] | |||||
Gross Carrying Amount | $ 2,522.2 | $ 2,522.2 | $ 2,625.6 | ||
Goodwill, Impaired, Accumulated Impairment Loss | 4.0 | ||||
Amortization of Intangible Assets | 45.6 | $ 7.3 | 119.1 | $ 15.4 | |
Intellectual Property | |||||
Acquired Finite-Lived Intangible Assets [Line Items] | |||||
Gross Carrying Amount | $ 14.8 | $ 14.8 | $ 14.2 |
Segments - Narrative (Details) $ in Millions |
6 Months Ended | |
---|---|---|
Dec. 31, 2019
USD ($)
segment
|
Dec. 31, 2018 |
|
Segment Reporting Information [Line Items] | ||
Number of Reportable Segments | segment | 2 | |
Number of Operating Segments | segment | 5 | |
Bemis Acquisition | ||
Segment Reporting Information [Line Items] | ||
Inventory Fair Value Step-Up, Business Combinations | $ 58.0 | |
Business Combination Transaction Related Costs Not Qualifying as Exit Costs | 43.2 | |
Sales Backlog Amortization, Business Combinations | $ 26.4 | |
Revenue Benchmark | ||
Segment Reporting Information [Line Items] | ||
Concentration Risk, Percentage | 10.20% |
Shareholders' Equity - Narrative (Details) $ in Millions |
3 Months Ended |
---|---|
Sep. 30, 2019
USD ($)
| |
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 | $ 8.8 |
Subsequent Events (Details) - $ / shares |
3 Months Ended | 6 Months Ended | ||
---|---|---|---|---|
Feb. 11, 2020 |
Dec. 31, 2019 |
Dec. 31, 2019 |
Dec. 31, 2018 |
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Subsequent Event [Line Items] | ||||
Dividends declared, per share | $ 0.115 | $ 0.235 | $ 0.240 | |
Subsequent Event | ||||
Subsequent Event [Line Items] | ||||
Dividends declared, per share | $ 0.115 |
Earnings Per Share Computations - Narrative (Details) - shares shares in Millions |
3 Months Ended | 6 Months Ended | ||
---|---|---|---|---|
Dec. 31, 2019 |
Dec. 31, 2018 |
Dec. 31, 2019 |
Dec. 31, 2018 |
|
Earnings Per Share [Abstract] | ||||
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount | 23.4 | 7.5 | 20.4 | 7.5 |
Acquisitions - Bemis Intangible Assets Acquired (Details) - Bemis Acquisition $ in Millions |
3 Months Ended |
---|---|
Dec. 31, 2019
USD ($)
| |
Acquired Finite-Lived Intangible Assets [Line Items] | |
Finite-lived Intangible Assets Acquired | $ 1,931.4 |
Customer relationships | |
Acquired Finite-Lived Intangible Assets [Line Items] | |
Finite-lived Intangible Assets Acquired | $ 1,650.0 |
Acquired Finite-lived Intangible Assets, Weighted Average Useful Life | 15 years |
Technology | |
Acquired Finite-Lived Intangible Assets [Line Items] | |
Finite-lived Intangible Assets Acquired | $ 110.0 |
Acquired Finite-lived Intangible Assets, Weighted Average Useful Life | 7 years |
Other | |
Acquired Finite-Lived Intangible Assets [Line Items] | |
Finite-lived Intangible Assets Acquired | $ 171.4 |
Acquired Finite-lived Intangible Assets, Weighted Average Useful Life | 7 years |
New Accounting Guidance - Leasing Guidance Balance Sheet Impact (Details) - USD ($) $ in Millions |
Dec. 31, 2019 |
Jul. 01, 2019 |
Jun. 30, 2019 |
---|---|---|---|
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||
Operating lease assets | $ 553.3 | $ 569.8 | $ 0.0 |
Other current liabilities | 1,020.0 | 1,099.2 | 1,044.9 |
Operating lease liabilities | 491.3 | 506.8 | 0.0 |
Deferred tax liabilities | 726.5 | 1,030.4 | 1,011.7 |
Other non-current liabilities | 220.0 | 172.8 | 241.0 |
Retained earnings | $ 254.4 | 381.9 | $ 323.7 |
Accounting Standards Update 2016-02 | |||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||
Operating lease assets | 569.8 | ||
Other current liabilities | 54.3 | ||
Operating lease liabilities | 506.8 | ||
Deferred tax liabilities | 18.7 | ||
Other non-current liabilities | (68.2) | ||
Retained earnings | $ 58.2 |
Income Taxes (Details) - USD ($) $ in Millions |
3 Months Ended | 6 Months Ended | ||
---|---|---|---|---|
Dec. 31, 2019 |
Dec. 31, 2018 |
Dec. 31, 2019 |
Dec. 31, 2018 |
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Income Tax Disclosure [Abstract] | ||||
Income tax expense | $ 45.1 | $ 31.1 | $ 66.9 | $ 52.8 |
Effective Tax Rate Change, Percent | 3.00% | |||
Effective Income Tax Rate Reconciliation, Percent | 20.50% | 17.50% |
Leases - ASC 842 Lease Maturity (Details) $ in Millions |
Dec. 31, 2019
USD ($)
|
---|---|
Operating Leases | |
Remainder of fiscal 2020 | $ 52.9 |
Fiscal 2021 | 96.7 |
Fiscal 2022 | 84.8 |
Fiscal 2023 | 72.8 |
Fiscal 2024 | 62.4 |
Thereafter | 330.7 |
Total lease payments | 700.3 |
Less: imputed interest | 124.6 |
Present value of lease liabilities | 575.7 |
Finance Leases | |
Remainder of fiscal 2020 | 0.9 |
Fiscal 2021 | 1.1 |
Fiscal 2022 | 1.0 |
Fiscal 2023 | 0.8 |
Fiscal 2024 | 0.8 |
Thereafter | 0.4 |
Total lease payments | 5.0 |
Less: imputed interest | 1.0 |
Present value of lease liabilities | $ 4.0 |
Condensed Consolidated Statement of Equity (Parenthetical) - $ / shares |
3 Months Ended | 6 Months Ended | |
---|---|---|---|
Dec. 31, 2019 |
Dec. 31, 2019 |
Dec. 31, 2018 |
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Statement of Stockholders' Equity [Abstract] | |||
Dividends declared, per share | $ 0.115 | $ 0.235 | $ 0.240 |
Earnings Per Share Computations |
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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.
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 six months ended December 31, 2019 represented an aggregate of 23.4 million and 20.4 million shares, respectively. The excluded share options for the three and six months ended December 31, 2018 represented an aggregate of 7.5 million and 7.5 million shares, respectively.
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New Accounting Guidance (Tables) |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Dec. 31, 2019 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Accounting Policies [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Impact of Adoption of New Leasing Standard in Company's Unaudited Condensed Consolidated Balance Sheet | The complete impact of the changes made to the Company's unaudited condensed consolidated balance sheet due to the adoption of the new leasing guidance were as follows:
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Segments (Tables) |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Segment Reporting [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Information About Reportable Segments | The following table presents information about reportable segments:
(7) Net legal settlements includes the impact of significant legal settlements after associated costs.
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Schedule of Disaggregation of Revenue by Segments | The following tables disaggregate net sales information by geography in which the Company operates based on manufacturing or selling operation:
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Derivative Instruments (Tables) |
6 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Derivative Instruments and Hedging Activities Disclosure [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Outstanding Commodity Contracts | At December 31, 2019 and June 30, 2019, the Company had the following outstanding commodity contracts that were entered into to hedge forecasted purchases:
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Schedule of Derivative Liabilities at Fair Value | The following tables provide the location of derivative instruments in the unaudited condensed consolidated balance sheet:
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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 statement of income:
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Schedule of Derivatives Not Designated as Hedging Instruments |
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Schedule of Fair Value Hedging Instruments In Condensed Consolidated Statement of Income |
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Restructuring Plans (Tables) |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Dec. 31, 2019 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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:
(1) Total restructuring and related expenses includes $1.8 million, $3.6 million and $1.5 million for the fiscal year 2019, fiscal year 2020 first quarter and fiscal year 2020 second quarter, respectively, of restructuring related costs from the 2019 Bemis Integration Plan.
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Schedule of Restructuring Reserve | An analysis of the Company's restructuring plan liability is as follows:
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Restructuring Plans |
6 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Dec. 31, 2019 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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 Plan pre-tax integration costs are expected to be approximately $200 million. The total Plan costs include $165 million of restructuring and related expenses and $35 million of general integration expenses. The restructuring and related expenses are comprised of approximately $100 million in employee related expenses, $30 million in fixed asset related expenses, $15 million in other restructuring and $20 million in restructuring related expenses. The Company estimates that approximately $150 million of the $200 million total integration costs will result in cash expenditures, of which $115 million relate to restructuring and related expenditures. Cash payments for the six months ended December 31, 2019 were $44.7 million, of which $23.6 million were payments related to restructuring and related expenditures. Cash payments of approximately $50 million to $60 million are expected for the balance of the fiscal year with $40 million to $50 million representing payments for restructuring and related expenses. The 2019 Bemis Integration Plan relates to the Flexibles segment and Corporate and is expected to be 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 our 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 loss 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 Plan pre-tax restructuring costs are expected to be approximately $95 million with the main component being the cost to exit manufacturing facilities and employee related costs. The Company estimates that approximately $65 million of the $95 million total costs will result in cash expenditures. Cash payments for the six months ended December 31, 2019 were $6.5 million, with approximately $10 million to $15 million expected during the remainder of the fiscal year. The Plan is expected to be materially completed during this fiscal year. Other Restructuring Plans The Company entered into other individually immaterial restructuring plans ("Other Restructuring Plans"). The Company's restructuring charge related to these Plans was approximately $0.7 million and $12.3 million for the three months ended December 31, 2019 and 2018, respectively, and $1.0 million and $14.7 million for the six months ended December 31, 2019 and 2018, respectively. Consolidated Amcor Restructuring Plans The total costs incurred from the beginning of the Company's material restructuring plans are as follows:
An analysis of the Company's restructuring plan liability is as follows:
The costs related to restructuring activities have been presented on the consolidated statement of income as restructuring and related expenses. The accruals related to restructuring activities have been recorded on the unaudited condensed consolidated balance sheet under other current liabilities.
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