Cover Page Document
Cover Page Document - shares | 3 Months Ended | |
Sep. 30, 2019 | Nov. 05, 2019 | |
Cover page. | ||
Entity Registrant Name | AMCOR PLC | |
Entity Central Index Key | 0001748790 | |
Entity Incorporation, State or Country Code | Y9 | |
Entity Tax Identification Number | 98-1455367 | |
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Sep. 30, 2019 | |
Document Transition Report | false | |
Entity File Number | 001-36786 | |
Entity Address, Address Line One | 83 Tower Road North | |
Entity Address, City or Town | Warmley, Bristol | |
Entity Address, Postal Zip Code | BS30 8XP | |
Entity Address, Country | GB | |
Country Region | 44 | |
City Area Code | 117 | |
Local Phone Number | 9753200 | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Common Stock, Shares Outstanding | 1,620,141,827 | |
Entity Filer Category | Non-accelerated Filer | |
Title of 12(b) Security | Ordinary Shares, Par Value $0.01 Per Share | |
Trading Symbol | AMCR | |
Security Exchange Name | NYSE | |
Current Fiscal Year End Date | --06-30 | |
Document Fiscal Year Focus | 2020 | |
Document Fiscal Period Focus | Q1 | |
Amendment Flag | false | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Small Business | false |
Condensed Consolidated Statemen
Condensed Consolidated Statement of Income - USD ($) $ in Millions | 3 Months Ended | |
Sep. 30, 2019 | Sep. 30, 2018 | |
Income Statement [Abstract] | ||
Net sales | $ 3,140.7 | $ 2,262.4 |
Cost of sales | (2,594) | (1,868.6) |
Gross profit | 546.7 | 393.8 |
Operating expenses: | ||
Selling, general, and administrative expenses | (371.9) | (198.3) |
Research and development expenses | (25.9) | (14.2) |
Restructuring and related expenses | (17.6) | (12.5) |
Other income, net | 9.3 | 8.7 |
Operating income | 140.6 | 177.5 |
Interest income | 6.7 | 2.9 |
Interest expense | (59.7) | (56.3) |
Other non-operating income (loss), net | 7.6 | (2.6) |
Income from continuing operations before income taxes and equity in income (loss) of affiliated companies | 95.2 | 121.5 |
Income tax expense | (21.8) | (21.7) |
Equity in income (loss) of affiliated companies, net of tax | 2.3 | 1.7 |
Income from continuing operations | 75.7 | 101.5 |
Income (loss) from discontinued operations, net of tax | (7.7) | 0 |
Net income | 68 | 101.5 |
Net (income) loss attributable to non-controlling interests | (2) | (3.1) |
Net income attributable to Amcor plc | $ 66 | $ 98.4 |
Basic earnings per share: | ||
Income from continuing operations | $ 0.05 | $ 0.09 |
Income from discontinued operations | (0.01) | 0 |
Net income | 0.04 | 0.09 |
Diluted earnings per share: | ||
Income from continuing operations | 0.05 | 0.08 |
Income from discontinued operations | (0.01) | 0 |
Net income | $ 0.04 | $ 0.08 |
Condensed Consolidated Statem_2
Condensed Consolidated Statement of Comprehensive Income Statement - USD ($) $ in Millions | 3 Months Ended | |
Sep. 30, 2019 | Sep. 30, 2018 | |
Statement of Comprehensive Income [Abstract] | ||
Net income | $ 68 | $ 101.5 |
Other comprehensive income (loss): | ||
Net gains (losses) on cash flow hedges, net of tax (a) | 0.6 | (2.2) |
Foreign currency translation adjustments, net of tax (b) | (50.7) | 33.5 |
Net investment hedge of foreign operations, net of tax (c) | (1.9) | (24.9) |
Pension, net of tax (d) | 0.9 | 0.3 |
Other comprehensive income (loss) | (51.1) | 6.7 |
Total comprehensive income | 16.9 | 108.2 |
Comprehensive (income) loss attributable to non-controlling interest | (2) | (3.1) |
Comprehensive income attributable to Amcor plc | 14.9 | 105.1 |
(a) Tax (expense) benefit related to cash flow hedges | 0 | 0.3 |
(b) Tax (expense) benefit related to foreign currency translation adjustments | (2.1) | (4.8) |
(c) Tax (expense) benefit related to net investment hedge of foreign operations | 0.9 | 7.5 |
(d) Tax (expense) benefit related to pension adjustments | $ (0.2) | $ (0.1) |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheet - USD ($) $ in Millions | Sep. 30, 2019 | Jun. 30, 2019 |
Current assets: | ||
Cash and cash equivalents | $ 480.2 | $ 601.6 |
Trade receivables, net | 1,789.5 | 1,864.3 |
Inventories, net | 1,874.4 | 1,953.8 |
Prepaid expenses and other current assets | 418.1 | 374.3 |
Assets held for sale | 0 | 416.1 |
Total current assets | 4,562.2 | 5,210.1 |
Non-current assets: | ||
Investments in affiliated companies | 103.1 | 98.9 |
Property, plant and equipment, net | 3,869 | 3,975 |
Operating lease assets | 569.8 | 0 |
Deferred tax assets | 156.7 | 190.9 |
Other intangible assets, net | 2,123 | 2,306.8 |
Goodwill | 5,117.3 | 5,156 |
Employee benefit assets | 39.5 | 40.2 |
Other non-current assets | 190.1 | 187.1 |
Total non-current assets | 12,168.5 | 11,954.9 |
Total assets | 16,730.7 | 17,165 |
Current liabilities: | ||
Current portion of long-term debt | 5 | 5.4 |
Short-term debt | 312.8 | 788.8 |
Trade payables | 1,891.9 | 2,303.4 |
Accrued employee costs | 343.9 | 378.4 |
Other current liabilities | 1,286 | 1,044.9 |
Liabilities held for sale | 0 | 20.9 |
Total current liabilities | 3,839.6 | 4,541.8 |
Non-current liabilities: | ||
Long-term debt, less current portion | 5,454.8 | 5,309 |
Operating lease liabilities | 506.8 | 0 |
Deferred tax liabilities | 850.8 | 1,011.7 |
Employee benefit obligations | 372.4 | 386.8 |
Other non-current liabilities | 214.9 | 241 |
Total non-current liabilities | 7,399.7 | 6,948.5 |
Total liabilities | 11,239.3 | 11,490.3 |
Amcor plc shareholders' equity: | ||
Issued (1,620.1 and 1,625.9 shares, respectively) | 16.2 | 16.3 |
Additional paid-in capital | 5,940.7 | 6,007.5 |
Retained earnings | 252.3 | 323.7 |
Accumulated other comprehensive income (loss) | (773.5) | (722.4) |
Treasury shares (1.1 and 1.4 shares, respectively) | (11.5) | (16.1) |
Total Amcor plc shareholders' equity | 5,424.2 | 5,609 |
Non-controlling interest | 67.2 | 65.7 |
Total shareholders' equity | 5,491.4 | 5,674.7 |
Total liabilities and shareholders' equity | $ 16,730.7 | $ 17,165 |
Condensed Consolidated Balanc_2
Condensed Consolidated Balance Sheet Parenthetical (Parentheticals) - $ / shares shares in Millions | Sep. 30, 2019 | Jun. 30, 2019 |
Statement of Financial Position [Abstract] | ||
Ordinary shares, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Ordinary shares, authorized shares | 9,000 | 9,000 |
Ordinary shares, issued shares | 1,620.1 | 1,625.9 |
Treasury shares | 1.1 | 1.4 |
Condensed Consolidated Statem_3
Condensed Consolidated Statement of Cash Flows - USD ($) $ in Millions | 3 Months Ended | |
Sep. 30, 2019 | Sep. 30, 2018 | |
Cash flows from operating activities: | ||
Net income (loss) | $ 68 | $ 101.5 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Depreciation, amortization and impairment | 184.3 | 86 |
Net periodic benefit cost | 1.6 | 2.7 |
Amortization of debt discount and deferred financing costs | 1.4 | 1.4 |
Amortization of deferred gain on sale and leasebacks | 0 | (1.8) |
Net gain on disposal of property, plant and equipment | (0.2) | (1.1) |
Equity in (income) of affiliated companies | (2.3) | (1.7) |
Net foreign exchange (gain) loss | 6.5 | 6.4 |
Share-based compensation | 6 | 4.5 |
Other, net | 10.8 | (0.6) |
Loss on transition to hyperinflationary accounting for Argentine subsidiaries | 19.3 | 9.4 |
Deferred income taxes, net | (36.6) | 7.5 |
Changes in operating assets and liabilities, excluding effect of acquisitions, divestitures, and currency | (348.2) | (520) |
Net cash provided by operating activities | (89.4) | (305.8) |
Cash flows from investing activities: | ||
Investments in affiliated companies | 0 | (0.8) |
Purchase of property, plant and equipment and other intangible assets | 115.4 | 112.8 |
Proceeds from divestiture | 397.1 | 0 |
Proceeds from sales of property, plant and equipment and other intangible assets | 2.4 | 7.8 |
Net cash (used in) provided by investing activities | 284.1 | (105.8) |
Cash flows from financing activities: | ||
Proceeds from issuance of shares | 0.7 | 9.1 |
Settlement of forward contracts | 0 | (28.7) |
Purchase of treasury shares | (10.2) | (21.2) |
Proceeds from issuance of long-term debt | 1,728 | 1,564.2 |
Repayment of long-term debt | (1,805) | (1,389.2) |
Net borrowing/(repayment) of short-term debt | (160.6) | 22.7 |
Repayment of lease liabilities | (0.3) | (0.5) |
Share buyback/cancellations | (58.3) | 0 |
Dividends paid to non-controlling interests | (0.5) | (2.1) |
Net cash used in financing activities | (306.2) | 154.3 |
Effect of exchange rates on cash and cash equivalents | (9.9) | (9.3) |
Net increase (decrease) in cash and cash equivalents | (121.4) | (266.6) |
Cash and cash equivalents balance at beginning of year | 601.6 | 620.8 |
Cash and cash equivalents balance at end of period | 480.2 | 354.2 |
Interest paid, net of amounts capitalized | 38.5 | 31.5 |
Income taxes paid | $ 54 | $ 24.1 |
Condensed Consolidated Statem_4
Condensed Consolidated Statement of Equity - USD ($) $ in Millions | Total | Ordinary Shares | Additional Paid-In Capital | Retained Earnings | Accumulated Other Comprehensive Income (Loss) | Treasury Shares | Non-controlling Interest | |
Beginning Balance at Jun. 30, 2018 | $ 695.4 | $ 0 | $ 784.4 | $ 561.4 | $ (708.5) | $ (10.7) | $ 68.8 | |
Net income (loss) | 101.5 | 98.4 | 3.1 | |||||
Other comprehensive income (loss) | 6.7 | 6.7 | ||||||
Dividends declared | (280.1) | (278) | ||||||
Distributions to non-controlling interest | 2.1 | |||||||
Options exercised and shares vested | (9.4) | (17.3) | (26.7) | |||||
Settlement of forward contracts to purchase own equity to meet share based incentive plans, net of tax | 0 | 25.1 | (25.1) | |||||
Purchase of treasury shares | (21.2) | (21.2) | ||||||
Share-based compensation expense | 4.5 | 4.5 | ||||||
Change in non-controlling interest | (0.1) | (0.1) | ||||||
Ending Balance at Sep. 30, 2018 | 516.1 | 0 | 796.6 | 381.8 | (701.8) | (30.3) | 69.8 | |
Beginning Balance at Jun. 30, 2019 | 5,674.7 | 16.3 | 6,007.5 | 323.7 | (722.4) | (16.1) | 65.7 | |
Net income (loss) | 68 | 66 | 2 | |||||
Other comprehensive income (loss) | (51.1) | (51.1) | ||||||
Share buyback/cancellations | 58.3 | 0.1 | 58.2 | |||||
Dividends declared | (196.1) | (195.6) | ||||||
Distributions to non-controlling interest | 0.5 | |||||||
Options exercised and shares vested | (0.2) | (14.6) | (14.8) | |||||
Purchase of treasury shares | (10.2) | (10.2) | ||||||
Share-based compensation expense | 6 | 6 | ||||||
Cumulative adjustment due to adoption of ASC 842 | Accounting Standards Update 2016-02 | [1] | 58.2 | 58.2 | |||||
Ending Balance at Sep. 30, 2019 | $ 5,491.4 | $ 16.2 | $ 5,940.7 | $ 252.3 | $ (773.5) | $ (11.5) | $ 67.2 | |
[1] | Refer to Note 10 , " Leases " for more information. |
Condensed Consolidated Statem_5
Condensed Consolidated Statement of Equity Parenthetical (Parentheticals) - $ / shares | 3 Months Ended | |
Sep. 30, 2019 | Sep. 30, 2018 | |
Statement of Stockholders' Equity [Abstract] | ||
Dividends declared, per share | $ 0.12 | $ 0.24 |
Nature of Operations and Basis
Nature of Operations and Basis of Presentation | 3 Months Ended |
Sep. 30, 2019 | |
Nature of Operations and Basis of Presentation [Abstract] | |
Organization, Consolidation and Presentation of Financial Statements Disclosure [Text Block] | 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. |
New Accounting Guidance
New Accounting Guidance | 3 Months Ended |
Sep. 30, 2019 | |
New Accounting Guidance [Abstract] | |
New Accounting Pronouncements and Changes in Accounting Principles [Text Block] | 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 is 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 today’s accounting. The guidance also eliminates today’s 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: 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 $58.2 million (net of tax) of deferred gains on sale leaseback transactions. The complete impact of the changes made to the Company's unaudited condensed consolidated balance sheet due to the adoption of the new leasing guidance were as follows: ($ in millions) June 30, 2019 Adjustments due to Adoption At July 1, 2019 Operating lease assets — 569.8 569.8 Other current liabilities 1,044.9 54.3 1,099.2 Operating lease liabilities — 506.8 506.8 Deferred tax liabilities 1,011.7 18.7 1,030.4 Other non-current liabilities 241.0 (68.2 ) 172.8 Retained earnings 323.7 58.2 381.9 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. 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. |
Acquisitions
Acquisitions | 3 Months Ended |
Sep. 30, 2019 | |
Acquisitions [Abstract] | |
Business Combination Disclosure [Text Block] | 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: Bemis shares outstanding at June 11, 2019 (in millions) 91.7 Share exchange ratio 5.1 Price per share (based on Amcor’s closing share price on June 11, 2019) $ 11.18 Total equity consideration ($ in millions) $ 5,229.6 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 Bemis acquisition contributed approximately $970 million in net sales and a $6 million net loss, which includes transaction and integration related costs and purchase accounting, to the first quarter of fiscal year 2020 results. 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. Since the date of acquisition, the Company has revised the allocation of the purchase price of the tangible and intangible assets and liabilities assumed based on an analysis of information that has been made available as of September 30, 2019. The changes in estimates recorded at September 30, 2019 include a $16.9 million increase to inventories, a $119.0 million decrease to finite lived intangible assets, a $48.6 million increase in assets held for sale, a $111.9 million decrease to deferred tax liabilities, a $41.9 million increase to other non-current liabilities and a $6.6 million decrease to goodwill. The allocation of fair value for the assets and liabilities acquired remains preliminary and may continue to be adjusted up to one year after the acquisition. Accordingly, final determination of the fair values may result in further adjustments to the values presented in the table on the next page. ($ in millions) Cash and cash equivalents $ 3.3 Trade receivables 436.4 Inventories 682.0 Prepaid expenses and other current assets 83.5 Assets held for sale 464.2 Property, plant and equipment 1,388.3 Deferred tax assets 35.5 Other intangible assets 1,911.2 Other non-current assets 34.5 Total identifiable assets acquired 5,038.9 Current portion of long-term debt 1.7 Short-term debt 8.6 Trade payables 287.7 Accrued employee costs 159.3 Other current liabilities 281.8 Liabilities held for sale 21.9 Long-term debt, less current portion 1,365.3 Deferred tax liabilities 670.7 Employee benefit obligation 62.6 Other non-current liabilities 80.8 Total liabilities assumed 2,940.4 Net identifiable assets acquired 2,098.5 Goodwill 3,131.1 Net assets acquired $ 5,229.6 The following table details the preliminary identifiable intangible assets acquired from Bemis, their fair values and estimated useful lives: Fair Value Weighted-average Estimated Useful Life ($ in millions) (Years) Customer relationships $ 1,630.0 15 Technology 110.0 7 Other 171.2 8 Total other intangible assets $ 1,911.2 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 September 30, 2019 has resulted in $3,131.1 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 $8.8 million which is the result of the reclassification of accumulated foreign currency translation amounts from accumulated other comprehensive income to earnings from discontinued operations upon sale of the EC Remedy. The following unaudited pro forma information has been prepared as if the acquisition of Bemis and the sale of the EC Remedy and U.S. Remedy had occurred as of July 1, 2018. The unaudited pro forma information combines the historical results of Amcor and Bemis. Three Months Ended September 30, ($ in millions) 2018 Net sales $ 3,223.5 Income from continuing operations $ 126.5 Pro forma adjustments to net sales are as follows: • Excludes net sales of the EC Remedy and U.S. Remedy. Pro forma adjustments to income from continuing operations attributable to Amcor plc are as follows: • Excludes income from the EC Remedy which has been accounted for as a discontinued operation and the U.S. Remedy which has been reported in U.S. GAAP income from continuing operations; • excludes acquisition related charges; • includes preliminary acquisition accounting adjustments, including amortization and depreciation adjustments as a result of the fair value adjustment to property, plant and equipment; and • excludes the impact on net income attributable to purchase accounting related inventory effects and sales backlog amortization given these charges do not have a continuing impact on the consolidated results. The pro forma results are not necessarily indicative of the actual results that would have occurred had the acquisition been in effect for the periods presented, nor is it intended to be a projection of future results. For example, the pro forma results do not include the expected synergies from the transactions, nor the related costs to achieve. |
Discontinued Operations
Discontinued Operations | 3 Months Ended |
Sep. 30, 2019 | |
Discontinued Operations [Abstract] | |
Disposal Groups, Including Discontinued Operations, Disclosure [Text Block] | Discontinued Operations On February 11, 2019, the Company received approval from the European Commission ("EC") for the acquisition of Bemis. A condition of the approval was an agreement to divest three Bemis medical packaging facilities located in the United Kingdom and Ireland ("EC Remedy"). Upon completion of the Bemis acquisition on June 11, 2019, the Company determined that the EC Remedy met the criteria to be classified as a discontinued operation, in accordance with ASC 205-20, "Discontinued Operations." The sale of the EC Remedy closed on August 8, 2019. The Company recorded a loss on the sale of $8.8 million , which is the result of the reclassification of accumulated foreign currency translation amounts from accumulated other comprehensive income to earnings from discontinued operations upon sale of the EC Remedy. The following table summarizes the results of the EC Remedy, classified as discontinued operations, from July 1, 2019 until the sale of the EC Remedy on August 8, 2019: Three Months Ended September 30, ($ in millions) 2019 Net sales $ 15.8 Income (loss) from discontinued operations (7.1 ) Tax expense on discontinued operations 0.6 Income (loss) from discontinued operations, net of tax $ (7.7 ) |
Restructuring Plans
Restructuring Plans | 3 Months Ended |
Sep. 30, 2019 | |
Restructuring Plans [Abstract] | |
Restructuring and Related Activities Disclosure [Text Block] | 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 restructuring costs are expected to be approximately $200 million . The Company estimates that approximately $150 million of the $200 million total costs will result in cash expenditures. Cash payments for the first quarter of fiscal year 2020 were $18.0 million , which includes $6.0 million of restructuring related expenditures. Cash payments of approximately $80 million are expected for the balance of the fiscal year. 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. 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 first quarter of fiscal year 2020 were $3.0 million , with $15 million to $20 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 $0.3 million and $2.4 million for the three months ended September 30, 2019 and 2018 , respectively. Consolidated Amcor Restructuring Plans The total costs incurred from the beginning of the Company's restructuring plans are as follows: ($ in millions) 2018 Rigid Packaging Restructuring Plan 2019 Bemis Integration Plan Other Restructuring Plans (1) Total Restructuring and Related Expenses Fiscal year 2019 net charges to earnings 64.1 47.9 18.8 130.8 Fiscal year 2020 first quarter net charges to earnings 3.4 13.9 0.3 17.6 Expense incurred to date $ 67.5 $ 61.8 $ 19.1 $ 148.4 (1) The Company entered into other individually immaterial restructuring plans. The Company's total incurred restructuring charge for these plans primarily relates to the Flexibles segment. Cash payments for these plans during the first quarter of fiscal year 2020 were $7.8 million . An analysis of the Company's restructuring plan liability is as follows: ($ in millions) Employee Costs Fixed Asset Related Costs Other Costs Total Restructuring Related Costs Liability balance at June 30, 2019 72.5 6.7 8.4 87.6 Net charges to earnings 9.1 2.3 6.2 17.6 Cash paid (17.2 ) — (5.6 ) (22.8 ) Non-cash and other (1.0 ) — — (1.0 ) Foreign currency translation (2.6 ) (0.2 ) (0.1 ) (2.9 ) Liability balance at September 30, 2019 $ 60.8 $ 8.8 $ 8.9 78.5 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. |
Inventories
Inventories | 3 Months Ended |
Sep. 30, 2019 | |
Inventory, Net [Abstract] | |
Supplemental Balance Sheet Disclosures [Text Block] | Inventories, Net Inventories, net are summarized as follows: ($ in millions) September 30, 2019 June 30, 2019 Raw materials and supplies $ 865.8 $ 864.6 Work in process and finished goods 1,107.0 1,180.9 Less: inventory reserves (98.4 ) (91.7 ) Total inventories, net $ 1,874.4 $ 1,953.8 |
Goodwill and Other Intangible A
Goodwill and Other Intangible Assets | 3 Months Ended |
Sep. 30, 2019 | |
Goodwill and Other Intangible Assets [Abstract] | |
Goodwill and Intangible Assets Disclosure [Text Block] | Goodwill and Other Intangible Assets Changes in the carrying amount of goodwill attributable to each reportable segment follow: ($ in millions) Flexibles Segment Rigid Packaging Segment Total Balance as of June 30, 2019 $ 4,180.8 $ 975.2 $ 5,156.0 Acquisition and acquisition adjustments (6.6 ) — (6.6 ) Currency translation (30.6 ) (1.5 ) (32.1 ) Balance as of September 30, 2019 $ 4,143.6 $ 973.7 $ 5,117.3 There is a $4.0 million accumulated goodwill impairment loss in the Rigid Packaging reportable segment as of September 30, 2019 and June 30, 2019 . Other Intangible Assets The components of intangible assets follows: September 30, 2019 ($ in millions) Gross Carrying Amount Accumulated Amortization and Impairment Net Carrying Amount Customer relationships $ 1,945.1 $ (173.5 ) $ 1,771.6 Computer software 228.2 (124.9 ) 103.3 Other (1) 329.2 (81.1 ) 248.1 Reported balance $ 2,502.5 $ (379.5 ) $ 2,123.0 June 30, 2019 ($ in millions) Gross Carrying Amount Accumulated Amortization and Impairment Net Carrying Amount Customer relationships $ 2,053.7 $ (144.0 ) $ 1,909.7 Computer software 221.3 (127.0 ) 94.3 Other (1) 350.6 (47.8 ) 302.8 Reported balance $ 2,625.6 $ (318.8 ) $ 2,306.8 (1) Other includes $14.0 million and $14.2 million for September 30, 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. Amortization expense for intangible assets during the three months ended September 30, 2019 and 2018 were $73.5 million and $8.1 million , respectively. |
Fair Value Measurements
Fair Value Measurements | 3 Months Ended |
Sep. 30, 2019 | |
Fair Value Measurements [Abstract] | |
Fair Value Disclosures [Text Block] | Fair Value Measurements The fair values of the Company’s financial assets and financial liabilities listed below reflect the amounts that would be received to sell the assets or paid to transfer the liabilities in an orderly transaction between market participants at the measurement date (exit price). The Company’s non-derivative financial instruments primarily include cash and cash equivalents, trade receivables, trade payables, short-term debt and long-term debt. At September 30, 2019 and June 30, 2019 , the carrying value of these financial instruments, excluding long-term debt, approximates fair value because of the short-term maturities of these instruments. The fair value of long-term debt with variable interest rates approximates its carrying value. The fair value of the Company’s long-term debt with fixed interest rates is based on market prices, if available, or expected future cash flows discounted at the current interest rate for financial liabilities with similar risk profiles. The carrying values and estimated fair values of long-term debt with fixed interest rates (excluding capital leases) were as follows: September 30, 2019 June 30, 2019 Carrying Value Fair Value Carrying Value Fair Value ($ in millions) (Level 2) (Level 2) Total long-term debt with fixed interest rates (excluding commercial paper and capital leases) $ 2,536.2 $ 2,650.0 $ 2,955.6 $ 3,041.3 Assets and Liabilities Measured and Recorded at Fair Value on a Recurring Basis Additionally, the Company measures and records certain assets and liabilities, including derivative instruments and contingent purchase consideration liabilities, at fair value. The following 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: September 30, 2019 ($ in millions) Level 1 Level 2 Level 3 Total Assets Commodity contracts $ — $ — $ — $ — Forward exchange contracts — 11.3 — 11.3 Interest rate swaps — 32.8 — 32.8 Cross currency interest rate swaps — 2.4 — 2.4 Total assets measured at fair value $ — $ 46.5 $ — $ 46.5 Liabilities Contingent purchase consideration liabilities $ — $ — $ 13.6 $ 13.6 Commodity contracts — 4.6 — 4.6 Forward exchange contracts — 7.4 — 7.4 Interest rate swaps — — — — Total liabilities measured at fair value $ — $ 12.0 $ 13.6 $ 25.6 June 30, 2019 ($ in millions) Level 1 Level 2 Level 3 Total Assets Commodity contracts $ — $ — $ — $ — Forward exchange contracts — 5.5 — 5.5 Interest rate swaps — 32.8 — 32.8 Total assets measured at fair value $ — $ 38.3 $ — $ 38.3 Liabilities Contingent purchase consideration liabilities $ — $ — $ 13.6 $ 13.6 Commodity contracts — 4.6 — 4.6 Forward exchange contracts — 9.3 — 9.3 Interest rate swaps — — — — Total liabilities measured at fair value $ — $ 13.9 $ 13.6 $ 27.5 The fair value of the commodity contracts was determined using a discounted cash flow analysis based on the terms of the contracts and observed market forward prices discounted at a currency-specific rate. Forward exchange contract fair values were determined based on quoted prices for similar assets and liabilities in active markets using inputs such as currency rates and forward points. The fair value of the interest rate swaps was determined using a discounted cash flow method based on market-based swap yield curves, taking into account current interest rates. The fair value of the contingent purchase consideration liabilities was determined for each arrangement individually. The fair value was determined using the income approach with significant inputs that are not observable in the market. Key assumptions include the discount rates consistent with the level of risk of achievement and probability adjusted financial projections. The expected outcomes are recorded at net present value, which requires adjustment over the life for changes in risks and probabilities. The fair value of contingent purchase consideration liabilities is included in other current liabilities and other non-current liabilities in the unaudited condensed consolidated balance sheet. |
Derivative Instruments
Derivative Instruments | 3 Months Ended |
Sep. 30, 2019 | |
Derivative Instruments [Abstract] | |
Derivative Instruments and Hedging Activities Disclosure [Text Block] | Derivative Instruments Amcor periodically uses derivatives and other financial instruments to hedge exposures to interest rate, commodity and currency risks. The Company does not hold or issue financial instruments for speculative or trading purposes. For hedges that meet the hedge accounting criteria, the Company, at inception, formally designates and documents the instrument as a fair value hedge or a cash flow hedge of a specific underlying exposure. On an ongoing basis, the Company assesses and documents that its hedges have been and are expected to continue to be highly effective. Interest Rate Risk The Company’s policy is to manage exposure to interest rate risk by maintaining a mixture of fixed-rate and variable-rate debt, monitoring global interest rates and, where appropriate, hedging floating interest rate exposure or debt at fixed interest rates through the use of interest rate swaps. For interest rate swaps that are accounted for as fair value hedges, changes in the fair value of both the hedging instruments and the underlying debt obligations are immediately recognized in interest expense. Changes in the fair value of interest rate swaps that have not been designated as hedging instruments are reported in the accompanying unaudited condensed consolidated statement of income under other non-operating income (loss), net. During the three months ended September 30, 2019 , the Company entered into a cross-currency interest rate swap with a notional amount of $100.0 million . The Company did not designate it as a hedging instrument and thus changes in fair value were immediately recognized in earnings. As of September 30, 2019 and June 30, 2019 , the total notional amount of the Company’s receive-fixed/pay-variable interest rate swaps accounted for as fair value hedges was $828.3 million and $841.1 million , respectively. Foreign Currency Risk The Company manufactures and sells its products and finances operations in a number of countries throughout the world and, as a result, is exposed to movements in foreign currency exchange rates. The purpose of the Company’s foreign currency hedging program is to manage the volatility associated with the changes in exchange rates. To manage this exchange rate risk, the Company utilizes forward contracts. Contracts that qualify for hedge accounting are designated as cash flow hedges of certain forecasted transactions denominated in foreign currencies. The effective portion of the changes in fair value of these instruments is reported in AOCI and reclassified into earnings in the same financial statement line item and in the same period or periods during which the related hedged transactions affect earnings. The ineffective portion is immediately recognized in the unaudited condensed consolidated statement of income. Changes in the fair value of forward contracts that have not been designated as hedging instruments are reported in the accompanying unaudited condensed consolidated statement of income. As of September 30, 2019 and June 30, 2019 , the notional amount of the outstanding forward contracts was $1.3 billion and $1.0 billion , respectively. The Company manages its currency exposure related to the net assets of its foreign operations primarily through borrowings denominated in the relevant currency. Foreign currency gains and losses from the remeasurement of external borrowings designated as net investment hedges of a foreign operation are recognized in AOCI, to the extent that the hedge is effective. The ineffective portion is immediately recognized in other non-operating income (loss), net in the unaudited condensed consolidated statement of income. When a hedged net investment is disposed of, a percentage of the cumulative amount recognized in AOCI in relation to the hedged net investment is recognized in the unaudited condensed consolidated statement of income as part of the profit or loss on disposal. As of September 30, 2019 , the carrying value of commercial paper issued which is designated as a net investment hedge was $67.0 million . Commodity Risk Certain raw materials used in the Company's production processes are subject to price volatility caused by weather, supply conditions, political and economic variables and other unpredictable factors. To manage the volatility in earnings due to price fluctuations, the Company utilizes fixed price swaps. Information about commodity price exposure is derived from supply forecasts submitted by customers and these exposures are hedged by a central treasury unit. Changes in the fair value of commodity hedges are recognized in AOCI. The cumulative amount of the hedge is recognized in the unaudited condensed consolidated statement of income when the forecast transaction is realized. At September 30, 2019 and June 30, 2019 , the Company had the following outstanding commodity contracts that were entered into to hedge forecasted purchases: September 30, 2019 June 30, 2019 Commodity Volume Volume Aluminum 34,571 tons 29,342 tons The following tables provide the location of derivative instruments in the unaudited condensed consolidated balance sheet: ($ in millions) Balance Sheet Location September 30, 2019 June 30, 2019 Assets Derivatives in cash flow hedging relationships: Forward exchange contracts Other current assets $ 2.9 $ 2.4 Derivatives not designated as hedging instruments: Forward exchange contracts Other current assets 8.3 2.7 Cross currency interest rate swaps Other current assets 2.4 — Total current derivative contracts 13.6 5.1 Derivatives in fair value hedging relationships: Interest rate swaps Other non-current assets 32.8 32.8 Derivatives not designated as hedging instruments: Forward exchange contracts Other non-current assets 0.1 0.4 Total non-current derivative contracts 32.9 33.2 Total derivative asset contracts $ 46.5 $ 38.3 Liabilities Derivatives in cash flow hedging relationships: Commodity contracts Other current liabilities $ 4.6 $ 4.6 Forward exchange contracts Other current liabilities 2.0 1.5 Derivatives not designated as hedging instruments: Forward exchange contracts Other current liabilities 5.4 7.1 Total current derivative contracts 12.0 13.2 Derivatives in cash flow hedging relationships: Forward exchange contracts Other non-current liabilities — 0.3 Derivatives not designated as hedging instruments: Forward exchange contracts Other non-current liabilities — 0.4 Total non-current derivative contracts — 0.7 Total derivative liability contracts $ 12.0 $ 13.9 In addition to the fair value associated with derivative instruments noted in the table above, the Company had a carrying value of $67.0 million associated with non-derivative instruments designated as foreign currency net investment hedges as of both September 30, 2019 and June 30, 2019 . The designated foreign currency-denominated debt is included in long-term debt in the unaudited condensed consolidated balance sheet. Certain derivative financial instruments are subject to master netting arrangements and are eligible for offset. The Company has made an accounting policy election not to offset the fair values of these instruments within the unaudited condensed consolidated balance sheet. The following tables provide the effects of derivative instruments on AOCI and in the unaudited condensed consolidated statement of income: Location of Gain (Loss) Reclassified from AOCI into Income (Effective Portion) Gain (Loss) Reclassified from AOCI into Income (Effective Portion) Three Months Ended September 30, ($ in millions) 2019 2018 Derivatives in cash flow hedging relationships Commodity contracts Cost of sales $ (1.5 ) $ 0.5 Forward exchange contracts Net sales (0.4 ) 0.1 Forward exchange contracts Cost of sales 0.1 0.2 Total $ (1.8 ) $ 0.8 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 September 30, ($ in millions) 2019 2018 Derivatives not designated as hedging instruments Forward exchange contracts Other income, net $ (0.3 ) $ (0.6 ) Cross currency interest rate swaps Other income, net (2.4 ) (0.1 ) Total $ (2.7 ) $ (0.7 ) 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 September 30, ($ in millions) 2019 2018 Derivatives in fair value hedging relationships Interest rate swaps Interest expense $ (0.1 ) $ (3.7 ) Total $ (0.1 ) $ (3.7 ) |
Leases
Leases | 3 Months Ended |
Sep. 30, 2019 | |
Leases [Abstract] | |
Leases of Lessee Disclosure [Text Block] | 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 September 30, 2019 , the Company does not have material lease commitments that have not commenced. The components of lease expense were as follows: (in millions) Three Months Ended September 30, Statement of Income Location 2019 Operating leases Cost of products sold $ 22.7 Selling, general and administrative expenses 5.7 Total lease cost (1) $ 28.4 (1) Includes short-term leases and variable lease costs, which are immaterial. Lease costs for finance leases were immaterial for the three months ended September 30, 2019 . Supplemental balance sheet information related to leases was as follows: (in millions) Balance Sheet Location September 30, 2019 Assets Operating lease assets Operating lease assets $ 569.8 Finance lease assets (1) Property, plant and equipment, net 2.3 Total lease assets $ 572.1 Liabilities Operating leases: Current operating lease liabilities Other current liabilities $ 83.7 Non-current operating lease liabilities Operating lease liabilities 506.8 Finance leases: Current finance lease liabilities Current portion of long-term debt 1.3 Non-current finance lease liabilities Long-term debt, less current portion 2.9 Total lease liabilities $ 594.7 (1) Finance lease assets are recorded net of accumulated amortization of $7.8 million at September 30, 2019 . 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: Three Months Ended September 30, (in millions) 2019 Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows from operating leases $ 27.0 Lease assets obtained in exchange for new lease obligations: Operating leases $ 25.7 Finance leases $ 0.8 Maturities of lease liabilities were as follows: (in millions) Operating Leases Finance Leases Remainder of 2020 $ 82.8 $ 1.4 2021 94.2 1.1 2022 82.5 1.0 2023 71.7 0.8 2024 61.3 0.7 Thereafter 351.0 0.3 Total lease payments 743.5 5.3 Less: imputed interest 153.0 1.1 Present value of lease liabilities $ 590.5 $ 4.2 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: (in millions) Operating Leases 2020 $ 97.6 2021 90.4 2022 77.7 2023 67.3 2024 55.9 Thereafter 301.8 Total minimum obligations $ 690.7 The weighted average remaining lease term and discount rate are as follows: September 30, 2019 Weighted average remaining lease term (in years): Operating leases 10.2 Finance leases 4.1 Weighted average discount rate: Operating Leases 4.3 % Finance leases 10.0 % |
Components of Net Periodic Bene
Components of Net Periodic Benefit Costs | 3 Months Ended |
Sep. 30, 2019 | |
Components of Net Periodic Benefit Cost [Abstract] | |
Pension and Other Postretirement Benefits Disclosure [Text Block] | Components of Net Periodic Benefit Cost Net periodic benefit cost for benefit plans include the following components: Three Months Ended September 30, ($ in millions) 2019 2018 Service cost $ 6.2 $ 3.9 Interest cost 12.3 6.7 Expected return on plan assets (18.0 ) (8.4 ) Amortization of net loss 1.5 1.0 Amortization of prior service credit (0.4 ) (0.5 ) Net periodic benefit cost $ 1.6 $ 2.7 |
Income Taxes
Income Taxes | 3 Months Ended |
Sep. 30, 2019 | |
Income Taxes [Abstract] | |
Income Tax Disclosure [Text Block] | Income Taxes The Company computes its provision for income taxes by applying the estimated annual effective tax rate to year to date income before income taxes and equity in income of affiliated companies and adjusts for discrete tax items recorded in the period. The provision for income taxes for the three months ended September 30, 2019 is based on our projected annual effective tax rate for fiscal year 2020, adjusted for specific items that are required to be recognized in the period in which they are incurred. Income tax expense for the three months ended September 30, 2019 is $21.8 million compared to $21.7 million in the same period in 2018. The effective tax rate increased by 5.1% , from 17.8% to 22.9% |
Shareholders' Equity
Shareholders' Equity | 3 Months Ended |
Sep. 30, 2019 | |
Shareholders' Equity [Abstract] | |
Stockholders' Equity Note Disclosure [Text Block] | Shareholders' Equity The changes in ordinary and treasury shares during the three months ended September 30, 2019 and 2018 were as follows: Ordinary Shares Treasury Shares (shares and $ in millions) Number of Shares Amount Number of Shares Amount Balance as of June 30, 2018 1,158.1 $ — 0.9 $ (10.7 ) Options exercised and shares vested (2.6 ) 26.7 Settlement of forward contracts to purchase own equity to meet share base incentive plans, net of tax 2.5 (25.1 ) Purchase of treasury shares 2.1 (21.2 ) Balance as of September 30, 2018 1,158.1 $ — 2.9 $ (30.3 ) Balance as of June 30, 2019 1,625.9 $ 16.3 1.4 $ (16.1 ) Share buy-back/cancellations (5.8 ) (0.1 ) Options exercised and shares vested (1.4 ) 14.8 Purchase of treasury shares 1.1 (10.2 ) Balance as of September 30, 2019 1,620.1 $ 16.2 1.1 $ (11.5 ) The changes in the components of accumulated other comprehensive income (loss) during the three months ended September 30, 2019 and 2018 were as follows: 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 $ (669.3 ) $ — $ (30.6 ) $ (8.6 ) $ (708.5 ) Other comprehensive income (loss) before reclassifications 33.5 (24.9 ) (0.1 ) (1.4 ) 7.1 Amounts reclassified from accumulated other comprehensive income (loss) — — 0.4 (0.8 ) (0.4 ) Net current period other comprehensive income (loss) 33.5 (24.9 ) 0.3 (2.2 ) 6.7 Balance as of September 30, 2018 $ (635.8 ) $ (24.9 ) $ (30.3 ) $ (10.8 ) $ (701.8 ) Balance as of June 30, 2019 $ (609.4 ) $ (11.2 ) $ (89.6 ) $ (12.2 ) $ (722.4 ) Other comprehensive income (loss) before reclassifications (59.5 ) (1.9 ) — (1.2 ) (62.6 ) Amounts reclassified from accumulated other comprehensive income (loss) 8.8 — 0.9 1.8 11.5 Net current period other comprehensive income (loss) (50.7 ) (1.9 ) 0.9 0.6 (51.1 ) Balance as of September 30, 2019 $ (660.1 ) $ (13.1 ) $ (88.7 ) $ (11.6 ) $ (773.5 ) The following tables provide details of amounts reclassified from accumulated other comprehensive income (loss): Three Months Ended September 30, ($ in millions) 2019 2018 Amortization of pension: Amortization of prior service credit $ (0.4 ) $ (0.5 ) Amortization of actuarial loss 1.5 1.0 Total before tax effect 1.1 0.5 Tax benefit on amounts reclassified into earnings (0.2 ) (0.1 ) Total net of tax $ 0.9 $ 0.4 (Gains) losses on cash flow hedges: Commodity contracts $ 1.5 $ (0.5 ) Forward exchange contracts 0.3 (0.3 ) Total before tax effect 1.8 (0.8 ) Tax benefit on amounts reclassified into earnings — — Total net of tax $ 1.8 $ (0.8 ) (Gains) losses on foreign currency translation: Foreign currency translation adjustment (1) $ 8.8 $ — Total before tax effect 8.8 — Tax benefit on amounts reclassified into earnings — — Total net of tax $ 8.8 $ — |
Segments
Segments | 3 Months Ended |
Sep. 30, 2019 | |
Segments [Abstract] | |
Segment Reporting Disclosure [Text Block] | 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 plastic 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: Three Months Ended September 30, ($ in millions) 2019 2018 Sales including intersegment sales Flexibles $ 2,430.8 $ 1,533.8 Rigid Packaging 710.6 729.0 Other — — Total sales including intersegment sales 3,141.4 2,262.8 Intersegment sales Flexibles 0.7 0.4 Rigid Packaging — — Other — — Total intersegment sales 0.7 0.4 Net sales $ 3,140.7 $ 2,262.4 Adjusted EBIT from continuing operations Flexibles $ 290.5 $ 157.5 Rigid Packaging 70.5 68.3 Other (25.9 ) (14.4 ) Adjusted EBIT from continuing operations 335.1 211.4 Less: Material restructuring programs (1) (17.3 ) (10.1 ) Less: Impairments in equity method investments (2) — (2.5 ) Less: Material acquisition costs and other (3) (83.6 ) (5.3 ) Less: Amortization of acquired intangible assets from business combinations (4) (68.3 ) (4.8 ) Add/(Less): Economic net investment hedging activities not qualifying for hedge accounting (5) — (2.7 ) Less: Impact of hyperinflation (6) (15.4 ) (9.4 ) EBIT from continuing operations 150.5 176.6 Interest income 6.7 2.9 Interest expense (59.7 ) (56.3 ) Equity in (income) loss of affiliated companies, net of tax (2.3 ) (1.7 ) Income from continuing operations before income taxes and equity in income (loss) of affiliated companies $ 95.2 $ 121.5 (1) Material restructuring programs includes the 2018 Rigid Packaging Restructuring Plan and the 2019 Bemis Integration Plan for the three months ended September 30, 2019 . For the three months ended September 30, 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 $58.0 million of Bemis acquisition related inventory fair value step-up and $25.6 million of Bemis transaction related costs and integration costs not qualifying as exit costs. (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 $25.9 million of sales backlog amortization in the fiscal first quarter of 2020 from the Bemis acquisition. (5) Economic net investment hedging activities not qualifying for hedge accounting includes the exchange rate movements on external loans not deemed to be effective net investment hedging instruments resulting from the Company's conversion to U.S. GAAP from Australian Accounting Standards ("AAS") recognized in other non-operating income (loss), net. (6) Impact of hyperinflation includes the adverse impact of highly inflationary accounting for subsidiaries in Argentina where the functional currency was the Argentine Peso. The Company does not have sales to a single customer that exceed 10% of consolidated net sales for the three months ended September 30, 2019 . Sales to PepsiCo., and its subsidiaries, accounted for approximately 12.1% of net sales under multiple separate contractual agreements for the three months ended September 30, 2018 . The Company sells to this customer in both the Rigid Packaging and the Flexibles reportable segments. The following tables disaggregate net sales information by geography in which the Company operates based on manufacturing or selling operation: Three Months Ended September 30, ($ in millions) 2019 2018 North America $ 1,492.9 $ 772.2 Latin America 388.7 263.3 Europe 885.5 885.2 Asia Pacific 373.6 341.7 Net sales $ 3,140.7 $ 2,262.4 |
Earnings Per Share Computations
Earnings Per Share Computations | 3 Months Ended |
Sep. 30, 2019 | |
Earnings Per Share Computations [Abstract] | |
Earnings Per Share [Text Block] | Earnings Per Share Computations The Company applies the two-class method when computing its earnings per share ("EPS"), which requires that net income per share for each class of share be calculated assuming all of the Company's net income is distributed as dividends to each class of share based on their contractual rights. Basic EPS is computed by dividing net income available to ordinary shareholders by the weighted-average number of ordinary shares outstanding after excluding the ordinary shares to be repurchased using forward contracts. Diluted EPS includes the effects of share options, restricted shares, performance rights, performance shares and share rights, if dilutive. Three Months Ended September 30, (in millions, except per share amounts) 2019 2018 Numerator Net income attributable to Amcor plc $ 66.0 $ 98.4 Distributed and undistributed earnings attributable to shares to be repurchased — (0.2 ) Net income available to ordinary shareholders of Amcor plc—basic and diluted $ 66.0 $ 98.2 Net income available to ordinary shareholders of Amcor plc from continuing operations—basic and diluted $ 73.7 $ 98.2 Net income available to ordinary shareholders of Amcor plc from discontinued operations—basic and diluted $ (7.7 ) $ — Denominator Weighted-average ordinary shares outstanding 1,623.5 1,156.5 Weighted-average ordinary shares to be repurchased by Amcor plc (0.3 ) (2.5 ) Weighted-average ordinary shares outstanding for EPS—basic 1,623.2 1,154.0 Effect of dilutive shares 2.9 4.7 Weighted-average ordinary shares outstanding for EPS—diluted 1,626.1 1,158.7 Per ordinary share income Income from continuing operations $ 0.05 $ 0.09 Income from discontinued operations (0.01 ) — Basic earnings per ordinary share $ 0.04 $ 0.09 Income from continuing operations $ 0.05 $ 0.08 Income from discontinued operations (0.01 ) — Diluted earnings per ordinary share $ 0.04 $ 0.08 Certain outstanding share options were excluded from the diluted earnings per share calculation because they were anti-dilutive. The excluded share options represented an aggregate of 17.3 million and 7.6 million shares in the three months ended September 30, 2019 and 2018 , respectively. |
Contingencies and Legal Proceed
Contingencies and Legal Proceedings | 3 Months Ended |
Sep. 30, 2019 | |
Contingencies and Legal Proceedings [Abstract] | |
Legal Matters and Contingencies [Text Block] | Contingencies and Legal Proceedings Contingencies The Company's operations in Brazil are involved in various governmental assessments, principally related to claims for excise and income taxes. The Company does not believe that the ultimate resolution of these matters will materially impact the Company's consolidated results of operations, financial position or cash flows. Under customary local regulations, the Company's Brazilian subsidiaries may need to post cash or other collateral if a challenge to any administrative assessment proceeds to the Brazilian court system; however, the level of cash or collateral already pledged or potentially required to be pledged would not significantly impact the liquidity of Amcor. At September 30, 2019 and June 30, 2019 , the Company has recorded an accrual of $15.3 million and $16.4 million , respectively, included in other non-current liabilities in the unaudited condensed consolidated balance sheet and has estimated a reasonably possible loss exposure in excess of the accrual of $25.5 million and $23.7 million , respectively. The litigation process is subject to many uncertainties and the outcome of individual matters cannot be accurately predicted. The Company's assessments are based on its knowledge and experience, but the ultimate outcome of any of these matters may differ from the Company's estimates. As of September 30, 2019 , Amcor provided letters of credit of $42.2 million and deposited cash of $13.1 million with the courts to continue to defend the cases. Legal Proceedings On April 18, 2019, prior to the closure of the Amcor and Bemis transaction, litigation funding firm, Burford Capital, notified Bemis on behalf of two shareholder funds (BCIM Strategic Value Master Fund LP and BCIM SV SMA I LLC) that the funds would not accept the fixed exchange ratio for Amcor shares and instead intended to file a case asking a Missouri state court to appraise the value of their Bemis shares and compensate them accordingly. On June 24, 2019, the Burford funds sent a formal written demand for payment of the fair value of the funds’ shares. On September 6, the Burford funds filed a Petition for Appraisal of Stock in the Missouri court. As the Company is in the very early stages of this proceeding, it is difficult to predict the potential outcome. Two lawsuits brought by purported holders of Bemis stock against Bemis and Bemis directors and officers are pending in federal court in the U.S. District Court for the Southern District of New York, in which plaintiffs are seeking damages for alleged violations of the Exchange Act of 1934 and U.S. Securities and Exchange Commission rules and regulations. Plaintiffs allege a failure to disclose adequately information in the proxy statement issued in connection with the Amcor-Bemis merger. The cases are: Dixon, et al. v. Bemis Company, Inc. et al. and Stein v. Bemis Company, Inc. et al ., which were instituted on April 15, 2019 and April 17, 2019, respectively. In addition, a purported holder of Bemis stock filed a putative derivative suit in the Cole County Circuit Court, Nineteenth Judicial District of Missouri, against Bemis directors and Amcor, alleging that the directors breached fiduciary duties in connection with the Amcor-Bemis merger and that Amcor aided and abetted breaches of fiduciary duty. The case is Scarantino, et al. v. Amcor Limited, et al. , which was instituted on April 19, 2019. Amcor intends to defend the claims made in the pending actions. It is too early for Amcor to provide any reliable assessment of the likely quantum of any damages that may become payable if its defense is unsuccessful in whole or in part. Although it is not possible at present to establish a reliable assessment of damages, there can be no assurance that any damages that may be awarded will not be material to the results of operations or financial condition of Amcor. |
Subsequent Events
Subsequent Events | 3 Months Ended |
Sep. 30, 2019 | |
Subsequent Events [Abstract] | |
Subsequent Events [Text Block] | Subsequent Events On November 7, 2019, the Company's Board of Directors declared a quarterly cash dividend of $0.12 per share to be paid on December 17, 2019 to shareholders of record as of November 28, 2019. |
Leases Significant Accounting P
Leases Significant Accounting Policies (Policies) | 3 Months Ended |
Sep. 30, 2019 | |
Leases [Abstract] | |
Lessee, Leases [Policy Text Block] | The Company has operating leases for certain manufacturing sites, office space, warehouses, land, vehicles and equipment. Most leases include the option to renew, with renewal terms that can extend the lease term from one to five years or more. Right-of-use lease assets and lease liabilities are recognized at the commencement date based on the present value of the remaining lease payments over the lease term which includes renewal periods the Company is reasonably certain to exercise. Short term leases with a term of twelve months or less, including reasonably certain holding periods, are not recorded on the balance sheet. The Company's leases do not contain any material residual value guarantees or material restrictive covenants. At September 30, 2019 , the Company does not have material lease commitments that have not commenced. |
New Accounting Guidance (Tables
New Accounting Guidance (Tables) | 3 Months Ended |
Sep. 30, 2019 | |
New Accounting Guidance [Abstract] | |
Schedule of New Accounting Pronouncements and Changes in Accounting Principles [Table Text Block] | The complete impact of the changes made to the Company's unaudited condensed consolidated balance sheet due to the adoption of the new leasing guidance were as follows: ($ in millions) June 30, 2019 Adjustments due to Adoption At July 1, 2019 Operating lease assets — 569.8 569.8 Other current liabilities 1,044.9 54.3 1,099.2 Operating lease liabilities — 506.8 506.8 Deferred tax liabilities 1,011.7 18.7 1,030.4 Other non-current liabilities 241.0 (68.2 ) 172.8 Retained earnings 323.7 58.2 381.9 |
Acquisitions (Tables)
Acquisitions (Tables) | 3 Months Ended |
Sep. 30, 2019 | |
Acquisitions [Abstract] | |
Schedule of Business Acquisitions, by Acquisition [Table Text Block] | The following table summarizes the fair value of consideration exchanged: Bemis shares outstanding at June 11, 2019 (in millions) 91.7 Share exchange ratio 5.1 Price per share (based on Amcor’s closing share price on June 11, 2019) $ 11.18 Total equity consideration ($ in millions) $ 5,229.6 |
Schedule of Recognized Identified Assets Acquired and Liabilities Assumed [Table Text Block] | ($ in millions) Cash and cash equivalents $ 3.3 Trade receivables 436.4 Inventories 682.0 Prepaid expenses and other current assets 83.5 Assets held for sale 464.2 Property, plant and equipment 1,388.3 Deferred tax assets 35.5 Other intangible assets 1,911.2 Other non-current assets 34.5 Total identifiable assets acquired 5,038.9 Current portion of long-term debt 1.7 Short-term debt 8.6 Trade payables 287.7 Accrued employee costs 159.3 Other current liabilities 281.8 Liabilities held for sale 21.9 Long-term debt, less current portion 1,365.3 Deferred tax liabilities 670.7 Employee benefit obligation 62.6 Other non-current liabilities 80.8 Total liabilities assumed 2,940.4 Net identifiable assets acquired 2,098.5 Goodwill 3,131.1 Net assets acquired $ 5,229.6 |
Schedule of Finite-Lived Intangible Assets Acquired as Part of Business Combination [Table Text Block] | The following table details the preliminary identifiable intangible assets acquired from Bemis, their fair values and estimated useful lives: Fair Value Weighted-average Estimated Useful Life ($ in millions) (Years) Customer relationships $ 1,630.0 15 Technology 110.0 7 Other 171.2 8 Total other intangible assets $ 1,911.2 |
Business Acquisition, Pro Forma Information [Table Text Block] | The unaudited pro forma information combines the historical results of Amcor and Bemis. Three Months Ended September 30, ($ in millions) 2018 Net sales $ 3,223.5 Income from continuing operations $ 126.5 |
Discontinued Operations (Tables
Discontinued Operations (Tables) | 3 Months Ended |
Sep. 30, 2019 | |
Discontinued Operations [Abstract] | |
Disposal Groups, Including Discontinued Operations [Table Text Block] | The following table summarizes the results of the EC Remedy, classified as discontinued operations, from July 1, 2019 until the sale of the EC Remedy on August 8, 2019: Three Months Ended September 30, ($ in millions) 2019 Net sales $ 15.8 Income (loss) from discontinued operations (7.1 ) Tax expense on discontinued operations 0.6 Income (loss) from discontinued operations, net of tax $ (7.7 ) |
Restructuring Plans (Tables)
Restructuring Plans (Tables) | 3 Months Ended |
Sep. 30, 2019 | |
Restructuring Plans [Abstract] | |
Restructuring and Related Costs [Table Text Block] | The total costs incurred from the beginning of the Company's restructuring plans are as follows: ($ in millions) 2018 Rigid Packaging Restructuring Plan 2019 Bemis Integration Plan Other Restructuring Plans (1) Total Restructuring and Related Expenses Fiscal year 2019 net charges to earnings 64.1 47.9 18.8 130.8 Fiscal year 2020 first quarter net charges to earnings 3.4 13.9 0.3 17.6 Expense incurred to date $ 67.5 $ 61.8 $ 19.1 $ 148.4 (1) The Company entered into other individually immaterial restructuring plans. The Company's total incurred restructuring charge for these plans primarily relates to the Flexibles segment. Cash payments for these plans during the first quarter of fiscal year 2020 were $7.8 million . |
Schedule of Restructuring Reserve by Type of Cost [Table Text Block] | An analysis of the Company's restructuring plan liability is as follows: ($ in millions) Employee Costs Fixed Asset Related Costs Other Costs Total Restructuring Related Costs Liability balance at June 30, 2019 72.5 6.7 8.4 87.6 Net charges to earnings 9.1 2.3 6.2 17.6 Cash paid (17.2 ) — (5.6 ) (22.8 ) Non-cash and other (1.0 ) — — (1.0 ) Foreign currency translation (2.6 ) (0.2 ) (0.1 ) (2.9 ) Liability balance at September 30, 2019 $ 60.8 $ 8.8 $ 8.9 78.5 |
Inventories (Tables)
Inventories (Tables) | 3 Months Ended |
Sep. 30, 2019 | |
Inventory, Net [Abstract] | |
Schedule of Inventory, Current [Table Text Block] | Inventories, net are summarized as follows: ($ in millions) September 30, 2019 June 30, 2019 Raw materials and supplies $ 865.8 $ 864.6 Work in process and finished goods 1,107.0 1,180.9 Less: inventory reserves (98.4 ) (91.7 ) Total inventories, net $ 1,874.4 $ 1,953.8 |
Goodwill and Other Intangible_2
Goodwill and Other Intangible Assets (Tables) | 3 Months Ended |
Sep. 30, 2019 | |
Goodwill and Other Intangible Assets [Abstract] | |
Schedule of Finite-Lived Intangible Assets [Table Text Block] | The components of intangible assets follows: September 30, 2019 ($ in millions) Gross Carrying Amount Accumulated Amortization and Impairment Net Carrying Amount Customer relationships $ 1,945.1 $ (173.5 ) $ 1,771.6 Computer software 228.2 (124.9 ) 103.3 Other (1) 329.2 (81.1 ) 248.1 Reported balance $ 2,502.5 $ (379.5 ) $ 2,123.0 June 30, 2019 ($ in millions) Gross Carrying Amount Accumulated Amortization and Impairment Net Carrying Amount Customer relationships $ 2,053.7 $ (144.0 ) $ 1,909.7 Computer software 221.3 (127.0 ) 94.3 Other (1) 350.6 (47.8 ) 302.8 Reported balance $ 2,625.6 $ (318.8 ) $ 2,306.8 (1) Other includes $14.0 million and $14.2 million for September 30, 2019 and June 30, 2019 , respectively, of acquired intellectual property assets not yet being amortized as the related R&D projects have not yet been completed. |
Schedule of Goodwill [Table Text Block] | Changes in the carrying amount of goodwill attributable to each reportable segment follow: ($ in millions) Flexibles Segment Rigid Packaging Segment Total Balance as of June 30, 2019 $ 4,180.8 $ 975.2 $ 5,156.0 Acquisition and acquisition adjustments (6.6 ) — (6.6 ) Currency translation (30.6 ) (1.5 ) (32.1 ) Balance as of September 30, 2019 $ 4,143.6 $ 973.7 $ 5,117.3 |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 3 Months Ended |
Sep. 30, 2019 | |
Fair Value Measurements [Abstract] | |
Fair Value, by Balance Sheet Grouping [Table Text Block] | The carrying values and estimated fair values of long-term debt with fixed interest rates (excluding capital leases) were as follows: September 30, 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) $ 2,536.2 $ 2,650.0 $ 2,955.6 $ 3,041.3 |
Schedule of Fair Value, Assets and Liabilities Measured on Recurring Basis [Table Text Block] | 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: September 30, 2019 ($ in millions) Level 1 Level 2 Level 3 Total Assets Commodity contracts $ — $ — $ — $ — Forward exchange contracts — 11.3 — 11.3 Interest rate swaps — 32.8 — 32.8 Cross currency interest rate swaps — 2.4 — 2.4 Total assets measured at fair value $ — $ 46.5 $ — $ 46.5 Liabilities Contingent purchase consideration liabilities $ — $ — $ 13.6 $ 13.6 Commodity contracts — 4.6 — 4.6 Forward exchange contracts — 7.4 — 7.4 Interest rate swaps — — — — Total liabilities measured at fair value $ — $ 12.0 $ 13.6 $ 25.6 June 30, 2019 ($ in millions) Level 1 Level 2 Level 3 Total Assets Commodity contracts $ — $ — $ — $ — Forward exchange contracts — 5.5 — 5.5 Interest rate swaps — 32.8 — 32.8 Total assets measured at fair value $ — $ 38.3 $ — $ 38.3 Liabilities Contingent purchase consideration liabilities $ — $ — $ 13.6 $ 13.6 Commodity contracts — 4.6 — 4.6 Forward exchange contracts — 9.3 — 9.3 Interest rate swaps — — — — Total liabilities measured at fair value $ — $ 13.9 $ 13.6 $ 27.5 |
Derivative Instruments (Tables)
Derivative Instruments (Tables) | 3 Months Ended |
Sep. 30, 2019 | |
Derivative Instruments [Abstract] | |
Outstanding Commodity Contracts [Table Text Block] | At September 30, 2019 and June 30, 2019 , the Company had the following outstanding commodity contracts that were entered into to hedge forecasted purchases: September 30, 2019 June 30, 2019 Commodity Volume Volume Aluminum 34,571 tons 29,342 tons |
Schedule of Derivative Liabilities at Fair Value [Table Text Block] | The following tables provide the location of derivative instruments in the unaudited condensed consolidated balance sheet: ($ in millions) Balance Sheet Location September 30, 2019 June 30, 2019 Assets Derivatives in cash flow hedging relationships: Forward exchange contracts Other current assets $ 2.9 $ 2.4 Derivatives not designated as hedging instruments: Forward exchange contracts Other current assets 8.3 2.7 Cross currency interest rate swaps Other current assets 2.4 — Total current derivative contracts 13.6 5.1 Derivatives in fair value hedging relationships: Interest rate swaps Other non-current assets 32.8 32.8 Derivatives not designated as hedging instruments: Forward exchange contracts Other non-current assets 0.1 0.4 Total non-current derivative contracts 32.9 33.2 Total derivative asset contracts $ 46.5 $ 38.3 Liabilities Derivatives in cash flow hedging relationships: Commodity contracts Other current liabilities $ 4.6 $ 4.6 Forward exchange contracts Other current liabilities 2.0 1.5 Derivatives not designated as hedging instruments: Forward exchange contracts Other current liabilities 5.4 7.1 Total current derivative contracts 12.0 13.2 Derivatives in cash flow hedging relationships: Forward exchange contracts Other non-current liabilities — 0.3 Derivatives not designated as hedging instruments: Forward exchange contracts Other non-current liabilities — 0.4 Total non-current derivative contracts — 0.7 Total derivative liability contracts $ 12.0 $ 13.9 |
Schedule of Cash Flow Hedges Included in Accumulated Other Comprehensive Income (Loss) [Table Text Block] | The following tables provide the effects of derivative instruments on AOCI and in the unaudited condensed consolidated statement of income: Location of Gain (Loss) Reclassified from AOCI into Income (Effective Portion) Gain (Loss) Reclassified from AOCI into Income (Effective Portion) Three Months Ended September 30, ($ in millions) 2019 2018 Derivatives in cash flow hedging relationships Commodity contracts Cost of sales $ (1.5 ) $ 0.5 Forward exchange contracts Net sales (0.4 ) 0.1 Forward exchange contracts Cost of sales 0.1 0.2 Total $ (1.8 ) $ 0.8 |
Derivatives Not Designated as Hedging Instruments [Table Text Block] | 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 September 30, ($ in millions) 2019 2018 Derivatives not designated as hedging instruments Forward exchange contracts Other income, net $ (0.3 ) $ (0.6 ) Cross currency interest rate swaps Other income, net (2.4 ) (0.1 ) Total $ (2.7 ) $ (0.7 ) |
Schedule of Fair Value Hedging Instruments, Statements of Financial Performance and Financial Position, Location [Table Text Block] | 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 September 30, ($ in millions) 2019 2018 Derivatives in fair value hedging relationships Interest rate swaps Interest expense $ (0.1 ) $ (3.7 ) Total $ (0.1 ) $ (3.7 ) |
Leases (Tables)
Leases (Tables) | 3 Months Ended |
Sep. 30, 2019 | |
Leases [Abstract] | |
Lease, Cost [Table Text Block] | The components of lease expense were as follows: (in millions) Three Months Ended September 30, Statement of Income Location 2019 Operating leases Cost of products sold $ 22.7 Selling, general and administrative expenses 5.7 Total lease cost (1) $ 28.4 (1) Includes short-term leases and variable lease costs, which are immaterial. |
Lease Information Related to Balance Sheet [Table Text Block] | Supplemental balance sheet information related to leases was as follows: (in millions) Balance Sheet Location September 30, 2019 Assets Operating lease assets Operating lease assets $ 569.8 Finance lease assets (1) Property, plant and equipment, net 2.3 Total lease assets $ 572.1 Liabilities Operating leases: Current operating lease liabilities Other current liabilities $ 83.7 Non-current operating lease liabilities Operating lease liabilities 506.8 Finance leases: Current finance lease liabilities Current portion of long-term debt 1.3 Non-current finance lease liabilities Long-term debt, less current portion 2.9 Total lease liabilities $ 594.7 (1) Finance lease assets are recorded net of accumulated amortization of $7.8 million at September 30, 2019 . |
Lease Information Related to Cash Flow [Table Text Block] | Supplemental cash flow information related to leases was as follows: Three Months Ended September 30, (in millions) 2019 Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows from operating leases $ 27.0 Lease assets obtained in exchange for new lease obligations: Operating leases $ 25.7 Finance leases $ 0.8 |
Operating Lease and Finance Lease Liability Maturity Table [Table Text Block] | Maturities of lease liabilities were as follows: (in millions) Operating Leases Finance Leases Remainder of 2020 $ 82.8 $ 1.4 2021 94.2 1.1 2022 82.5 1.0 2023 71.7 0.8 2024 61.3 0.7 Thereafter 351.0 0.3 Total lease payments 743.5 5.3 Less: imputed interest 153.0 1.1 Present value of lease liabilities $ 590.5 $ 4.2 |
Lessee, Operating Lease, Liability, Maturity [Table Text Block] | 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: (in millions) Operating Leases 2020 $ 97.6 2021 90.4 2022 77.7 2023 67.3 2024 55.9 Thereafter 301.8 Total minimum obligations $ 690.7 |
Weighted Average Remaining Lease Term and Lease Discount Rate Information [Table Text Block] | The weighted average remaining lease term and discount rate are as follows: September 30, 2019 Weighted average remaining lease term (in years): Operating leases 10.2 Finance leases 4.1 Weighted average discount rate: Operating Leases 4.3 % Finance leases 10.0 % |
Components of Net Periodic Be_2
Components of Net Periodic Benefit Costs (Tables) | 3 Months Ended |
Sep. 30, 2019 | |
Components of Net Periodic Benefit Cost [Abstract] | |
Schedule of Net Benefit Costs [Table Text Block] | Net periodic benefit cost for benefit plans include the following components: Three Months Ended September 30, ($ in millions) 2019 2018 Service cost $ 6.2 $ 3.9 Interest cost 12.3 6.7 Expected return on plan assets (18.0 ) (8.4 ) Amortization of net loss 1.5 1.0 Amortization of prior service credit (0.4 ) (0.5 ) Net periodic benefit cost $ 1.6 $ 2.7 |
Shareholders' Equity (Tables)
Shareholders' Equity (Tables) | 3 Months Ended |
Sep. 30, 2019 | |
Shareholders' Equity [Abstract] | |
Schedule of Stockholders Equity [Table Text Block] | The changes in ordinary and treasury shares during the three months ended September 30, 2019 and 2018 were as follows: Ordinary Shares Treasury Shares (shares and $ in millions) Number of Shares Amount Number of Shares Amount Balance as of June 30, 2018 1,158.1 $ — 0.9 $ (10.7 ) Options exercised and shares vested (2.6 ) 26.7 Settlement of forward contracts to purchase own equity to meet share base incentive plans, net of tax 2.5 (25.1 ) Purchase of treasury shares 2.1 (21.2 ) Balance as of September 30, 2018 1,158.1 $ — 2.9 $ (30.3 ) Balance as of June 30, 2019 1,625.9 $ 16.3 1.4 $ (16.1 ) Share buy-back/cancellations (5.8 ) (0.1 ) Options exercised and shares vested (1.4 ) 14.8 Purchase of treasury shares 1.1 (10.2 ) Balance as of September 30, 2019 1,620.1 $ 16.2 1.1 $ (11.5 ) |
Schedule of Accumulated Other Comprehensive Income (Loss) [Table Text Block] | The changes in the components of accumulated other comprehensive income (loss) during the three months ended September 30, 2019 and 2018 were as follows: 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 $ (669.3 ) $ — $ (30.6 ) $ (8.6 ) $ (708.5 ) Other comprehensive income (loss) before reclassifications 33.5 (24.9 ) (0.1 ) (1.4 ) 7.1 Amounts reclassified from accumulated other comprehensive income (loss) — — 0.4 (0.8 ) (0.4 ) Net current period other comprehensive income (loss) 33.5 (24.9 ) 0.3 (2.2 ) 6.7 Balance as of September 30, 2018 $ (635.8 ) $ (24.9 ) $ (30.3 ) $ (10.8 ) $ (701.8 ) Balance as of June 30, 2019 $ (609.4 ) $ (11.2 ) $ (89.6 ) $ (12.2 ) $ (722.4 ) Other comprehensive income (loss) before reclassifications (59.5 ) (1.9 ) — (1.2 ) (62.6 ) Amounts reclassified from accumulated other comprehensive income (loss) 8.8 — 0.9 1.8 11.5 Net current period other comprehensive income (loss) (50.7 ) (1.9 ) 0.9 0.6 (51.1 ) Balance as of September 30, 2019 $ (660.1 ) $ (13.1 ) $ (88.7 ) $ (11.6 ) $ (773.5 ) |
Reclassification out of Accumulated Other Comprehensive Income [Table Text Block] | The following tables provide details of amounts reclassified from accumulated other comprehensive income (loss): Three Months Ended September 30, ($ in millions) 2019 2018 Amortization of pension: Amortization of prior service credit $ (0.4 ) $ (0.5 ) Amortization of actuarial loss 1.5 1.0 Total before tax effect 1.1 0.5 Tax benefit on amounts reclassified into earnings (0.2 ) (0.1 ) Total net of tax $ 0.9 $ 0.4 (Gains) losses on cash flow hedges: Commodity contracts $ 1.5 $ (0.5 ) Forward exchange contracts 0.3 (0.3 ) Total before tax effect 1.8 (0.8 ) Tax benefit on amounts reclassified into earnings — — Total net of tax $ 1.8 $ (0.8 ) (Gains) losses on foreign currency translation: Foreign currency translation adjustment (1) $ 8.8 $ — Total before tax effect 8.8 — Tax benefit on amounts reclassified into earnings — — Total net of tax $ 8.8 $ — (1) The Company recorded a loss on the sale of the EC Remedy of $8.8 million , which is the result of the reclassification of accumulated foreign currency translation amounts from accumulated other comprehensive income to earnings. Refer to Note 4 , " Discontinued Operations " for more information. |
Segments (Tables)
Segments (Tables) | 3 Months Ended |
Sep. 30, 2019 | |
Segments [Abstract] | |
Schedule of Segment Reporting Information, by Segment [Table Text Block] | The following table presents information about reportable segments: Three Months Ended September 30, ($ in millions) 2019 2018 Sales including intersegment sales Flexibles $ 2,430.8 $ 1,533.8 Rigid Packaging 710.6 729.0 Other — — Total sales including intersegment sales 3,141.4 2,262.8 Intersegment sales Flexibles 0.7 0.4 Rigid Packaging — — Other — — Total intersegment sales 0.7 0.4 Net sales $ 3,140.7 $ 2,262.4 Adjusted EBIT from continuing operations Flexibles $ 290.5 $ 157.5 Rigid Packaging 70.5 68.3 Other (25.9 ) (14.4 ) Adjusted EBIT from continuing operations 335.1 211.4 Less: Material restructuring programs (1) (17.3 ) (10.1 ) Less: Impairments in equity method investments (2) — (2.5 ) Less: Material acquisition costs and other (3) (83.6 ) (5.3 ) Less: Amortization of acquired intangible assets from business combinations (4) (68.3 ) (4.8 ) Add/(Less): Economic net investment hedging activities not qualifying for hedge accounting (5) — (2.7 ) Less: Impact of hyperinflation (6) (15.4 ) (9.4 ) EBIT from continuing operations 150.5 176.6 Interest income 6.7 2.9 Interest expense (59.7 ) (56.3 ) Equity in (income) loss of affiliated companies, net of tax (2.3 ) (1.7 ) Income from continuing operations before income taxes and equity in income (loss) of affiliated companies $ 95.2 $ 121.5 (1) Material restructuring programs includes the 2018 Rigid Packaging Restructuring Plan and the 2019 Bemis Integration Plan for the three months ended September 30, 2019 . For the three months ended September 30, 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 $58.0 million of Bemis acquisition related inventory fair value step-up and $25.6 million of Bemis transaction related costs and integration costs not qualifying as exit costs. (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 $25.9 million of sales backlog amortization in the fiscal first quarter of 2020 from the Bemis acquisition. (5) Economic net investment hedging activities not qualifying for hedge accounting includes the exchange rate movements on external loans not deemed to be effective net investment hedging instruments resulting from the Company's conversion to U.S. GAAP from Australian Accounting Standards ("AAS") recognized in other non-operating income (loss), net. (6) Impact of hyperinflation includes the adverse impact of highly inflationary accounting for subsidiaries in Argentina where the functional currency was the Argentine Peso. |
Disaggregation of Revenue [Table Text Block] | The following tables disaggregate net sales information by geography in which the Company operates based on manufacturing or selling operation: Three Months Ended September 30, ($ in millions) 2019 2018 North America $ 1,492.9 $ 772.2 Latin America 388.7 263.3 Europe 885.5 885.2 Asia Pacific 373.6 341.7 Net sales $ 3,140.7 $ 2,262.4 |
Earnings Per Share Computatio_2
Earnings Per Share Computations (Tables) | 3 Months Ended |
Sep. 30, 2019 | |
Earnings Per Share Computations [Abstract] | |
Schedule of Earnings Per Share, Basic and Diluted [Table Text Block] | Basic EPS is computed by dividing net income available to ordinary shareholders by the weighted-average number of ordinary shares outstanding after excluding the ordinary shares to be repurchased using forward contracts. Diluted EPS includes the effects of share options, restricted shares, performance rights, performance shares and share rights, if dilutive. Three Months Ended September 30, (in millions, except per share amounts) 2019 2018 Numerator Net income attributable to Amcor plc $ 66.0 $ 98.4 Distributed and undistributed earnings attributable to shares to be repurchased — (0.2 ) Net income available to ordinary shareholders of Amcor plc—basic and diluted $ 66.0 $ 98.2 Net income available to ordinary shareholders of Amcor plc from continuing operations—basic and diluted $ 73.7 $ 98.2 Net income available to ordinary shareholders of Amcor plc from discontinued operations—basic and diluted $ (7.7 ) $ — Denominator Weighted-average ordinary shares outstanding 1,623.5 1,156.5 Weighted-average ordinary shares to be repurchased by Amcor plc (0.3 ) (2.5 ) Weighted-average ordinary shares outstanding for EPS—basic 1,623.2 1,154.0 Effect of dilutive shares 2.9 4.7 Weighted-average ordinary shares outstanding for EPS—diluted 1,626.1 1,158.7 Per ordinary share income Income from continuing operations $ 0.05 $ 0.09 Income from discontinued operations (0.01 ) — Basic earnings per ordinary share $ 0.04 $ 0.09 Income from continuing operations $ 0.05 $ 0.08 Income from discontinued operations (0.01 ) — Diluted earnings per ordinary share $ 0.04 $ 0.08 |
Nature of Operations and Basi_2
Nature of Operations and Basis of Presentation (Details) | Sep. 30, 2019 |
Nature of Operations and Basis of Presentation [Abstract] | |
Entity Number of Employees | 50,000 |
Number of Facilities in which Entity Operates | 250 |
Number of Countries in which Entity Operates | 40 |
New Accounting Guidance (Detail
New Accounting Guidance (Details) - USD ($) $ in Millions | Sep. 30, 2019 | Jul. 01, 2019 | Jun. 30, 2019 |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||
Operating Lease, Liability | $ 590.5 | ||
Retained earnings | 252.3 | $ 381.9 | $ 323.7 |
Operating lease assets | 569.8 | 569.8 | 0 |
Operating lease liabilities | $ 506.8 | 506.8 | $ 0 |
Accounting Standards Update 2016-02 | |||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||
Retained earnings | $ 58.2 |
New Accounting Guidance Leasing
New Accounting Guidance Leasing Guidance Balance Sheet Impact (Details) - USD ($) $ in Millions | Sep. 30, 2019 | Jul. 01, 2019 | Jun. 30, 2019 |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||
Operating lease assets | $ 569.8 | $ 569.8 | $ 0 |
Other current liabilities | 1,286 | 1,099.2 | 1,044.9 |
Operating lease liabilities | 506.8 | 506.8 | 0 |
Deferred tax liabilities | 850.8 | 1,030.4 | 1,011.7 |
Other non-current liabilities | 214.9 | 172.8 | 241 |
Retained earnings | $ 252.3 | 381.9 | $ 323.7 |
Accounting Standards Update 2016-02 | |||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||
Other current liabilities | 54.3 | ||
Deferred tax liabilities | 18.7 | ||
Other non-current liabilities | (68.2) | ||
Retained earnings | $ 58.2 |
Acquisitions (Details)
Acquisitions (Details) - USD ($) $ in Millions | 3 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Jun. 30, 2019 | |
Business Acquisition [Line Items] | |||
Net sales | $ 3,140.7 | $ 2,262.4 | |
Net loss | 68 | 101.5 | |
Goodwill | 5,117.3 | $ 5,156 | |
Proceeds from divestiture | 397.1 | $ 0 | |
Acquisition and acquisition adjustments | (6.6) | ||
Bemis Acquisition | |||
Business Acquisition [Line Items] | |||
Net sales | 970 | ||
Net loss | (6) | ||
Business Combination, Provisional Information, Initial Accounting Incomplete, Adjustment, Inventory | 16.9 | ||
Goodwill | 3,131.1 | ||
Business Acquisition, Percentage of Voting Interests Acquired | 100.00% | ||
Share exchange ratio | 5.1 | ||
Business Combination, Provisional Information, Initial Accounting Incomplete, Adjustment, Intangibles | 119 | ||
Business Combination, Provisional Information, Initial Accounting Incomplete, Adjustment, Assets Held for Sale | 48.6 | ||
Acquisition and acquisition adjustments | 6.6 | ||
U.S. Remedy | |||
Business Acquisition [Line Items] | |||
Proceeds from divestiture | 214.2 | ||
Disposal Group, Not Discontinued Operation, Gain (Loss) on Disposal | 159.1 | ||
EC Remedy | |||
Business Acquisition [Line Items] | |||
Proceeds from divestiture | 397.1 | ||
Discontinued Operation, Gain (Loss) on Disposal of Discontinued Operation, Net of Tax | (8.8) | ||
Deferred tax liabilities | Bemis Acquisition | |||
Business Acquisition [Line Items] | |||
Business Combination, Provisional Information, Initial Accounting Incomplete, Adjustment, Financial Liabilities | 111.9 | ||
Other non-current liabilities | Bemis Acquisition | |||
Business Acquisition [Line Items] | |||
Business Combination, Provisional Information, Initial Accounting Incomplete, Adjustment, Financial Liabilities | $ 41.9 |
Acquisitions Bemis Fair Value C
Acquisitions Bemis Fair Value Consideration (Details) - Bemis Acquisition $ / shares in Units, shares in Millions, $ in Millions | 3 Months Ended | 12 Months Ended |
Sep. 30, 2019shares | Jun. 30, 2019USD ($)$ / shares | |
Business Acquisition [Line Items] | ||
Bemis shares outstanding at June 11, 2019 | shares | 91.7 | |
Share exchange ratio | 5.1 | |
Price per share (based on Amcor’s closing share price on June 11, 2019) | $ / shares | $ 11.18 | |
Total equity consideration | $ | $ 5,229.6 |
Acquisitions Bemis Identifiable
Acquisitions Bemis Identifiable Net Assets Acquired (Details) - USD ($) $ in Millions | Sep. 30, 2019 | Jul. 01, 2019 | Jun. 30, 2019 | Sep. 30, 2018 | Jun. 30, 2018 |
Business Acquisition [Line Items] | |||||
Cash and cash equivalents | $ 480.2 | $ 601.6 | $ 354.2 | $ 620.8 | |
Trade receivables, net | 1,789.5 | 1,864.3 | |||
Prepaid expenses and other current assets | 418.1 | 374.3 | |||
Assets held for sale | 0 | 416.1 | |||
Deferred tax assets | 156.7 | 190.9 | |||
Other non-current assets | 190.1 | 187.1 | |||
Assets | 16,730.7 | 17,165 | |||
Current portion of long-term debt | 5 | 5.4 | |||
Short-term debt | 312.8 | 788.8 | |||
Trade payables | 1,891.9 | 2,303.4 | |||
Accrued employee costs | 343.9 | 378.4 | |||
Other current liabilities | 1,286 | $ 1,099.2 | 1,044.9 | ||
Liabilities held for sale | 0 | 20.9 | |||
Long-term debt, less current portion | 5,454.8 | 5,309 | |||
Deferred tax liabilities | 850.8 | 1,030.4 | 1,011.7 | ||
Employee benefit obligations | 372.4 | 386.8 | |||
Other non-current liabilities | 214.9 | $ 172.8 | 241 | ||
Liabilities | 11,239.3 | 11,490.3 | |||
Goodwill | 5,117.3 | $ 5,156 | |||
Bemis Acquisition | |||||
Business Acquisition [Line Items] | |||||
Cash and cash equivalents | 3.3 | ||||
Trade receivables, net | 436.4 | ||||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Inventory | 682 | ||||
Prepaid expenses and other current assets | 83.5 | ||||
Assets held for sale | 464.2 | ||||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Property, Plant, and Equipment | 1,388.3 | ||||
Deferred tax assets | 35.5 | ||||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Finite-Lived Intangibles | 1,911.2 | ||||
Other non-current assets | 34.5 | ||||
Assets | 5,038.9 | ||||
Current portion of long-term debt | 1.7 | ||||
Short-term debt | 8.6 | ||||
Trade payables | 287.7 | ||||
Accrued employee costs | 159.3 | ||||
Other current liabilities | 281.8 | ||||
Liabilities held for sale | 21.9 | ||||
Long-term debt, less current portion | 1,365.3 | ||||
Deferred tax liabilities | 670.7 | ||||
Employee benefit obligations | 62.6 | ||||
Other non-current liabilities | 80.8 | ||||
Liabilities | 2,940.4 | ||||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Net | 2,098.5 | ||||
Goodwill | 3,131.1 | ||||
Business Combination, Consideration Transferred | $ 5,229.6 |
Acquisitions Bemis Intangible A
Acquisitions Bemis Intangible Assets Acquired (Details) - Bemis Acquisition $ in Millions | 3 Months Ended |
Sep. 30, 2019USD ($) | |
Acquired Finite-Lived Intangible Assets [Line Items] | |
Finite-lived Intangible Assets Acquired | $ 1,911.2 |
Customer relationships | |
Acquired Finite-Lived Intangible Assets [Line Items] | |
Finite-lived Intangible Assets Acquired | $ 1,630 |
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 |
Acquired Finite-lived Intangible Assets, Weighted Average Useful Life | 7 years |
Other | |
Acquired Finite-Lived Intangible Assets [Line Items] | |
Finite-lived Intangible Assets Acquired | $ 171.2 |
Acquired Finite-lived Intangible Assets, Weighted Average Useful Life | 8 years |
Acquisitions Bemis Pro Forma (D
Acquisitions Bemis Pro Forma (Details) $ in Millions | 3 Months Ended |
Sep. 30, 2018USD ($) | |
Acquisitions [Abstract] | |
Business Acquisition, Pro Forma Revenue | $ 3,223.5 |
Business Acquisition, Pro Forma Income (Loss) from Continuing Operations, Net of Tax | $ 126.5 |
Discontinued Operations (Detail
Discontinued Operations (Details) - USD ($) $ in Millions | 3 Months Ended | |
Sep. 30, 2019 | Sep. 30, 2018 | |
Foreign Currency Translation | ||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||
Amounts reclassified from accumulated other comprehensive income (loss) | $ 8.8 | $ 0 |
Discontinued Operations Summary
Discontinued Operations Summary of Discontinued Operations (Details) - USD ($) $ in Millions | 3 Months Ended | |
Sep. 30, 2019 | Sep. 30, 2018 | |
Income (loss) from discontinued operations | $ (7.1) | |
Tax expense on discontinued operations | 0.6 | |
Income (loss) from discontinued operations, net of tax | (7.7) | $ 0 |
Discontinued Operations | ||
Net sales | $ 15.8 |
Restructuring Plans (Details)
Restructuring Plans (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | 12 Months Ended | 13 Months Ended | |
Sep. 30, 2019 | Sep. 30, 2018 | Jun. 30, 2020 | Jun. 30, 2019 | Sep. 30, 2019 | |
Restructuring Cost and Reserve [Line Items] | |||||
Cash paid | $ 22.8 | ||||
Restructuring Charges | 17.6 | $ 130.8 | $ 148.4 | ||
2019 Bemis Integration Plan | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Anticipated Business Combination Savings | 180 | ||||
Restructuring Costs | 200 | ||||
Cash paid | 18 | 150 | |||
Payments for Restructuring Related | 6 | ||||
Restructuring Charges | 13.9 | 47.9 | 61.8 | ||
2018 Rigid Packaging Restructuring Plan | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Restructuring Costs | 95 | ||||
Cash paid | 3 | 65 | |||
Restructuring Charges | 3.4 | 64.1 | 67.5 | ||
Other Restructuring Plans | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Cash paid | 7.8 | ||||
Restructuring Charges | $ 0.3 | $ 2.4 | $ 18.8 | $ 19.1 | |
Subsequent Event | 2018 Rigid Packaging Restructuring Plan | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Cash paid | $ 80 | ||||
Subsequent Event | Minimum | 2018 Rigid Packaging Restructuring Plan | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Cash paid | 15 | ||||
Subsequent Event | Maximum | 2018 Rigid Packaging Restructuring Plan | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Cash paid | $ 20 |
Restructuring Plans Schedule of
Restructuring Plans Schedule of Restructuring Plan Liability (Details) $ in Millions | 3 Months Ended |
Sep. 30, 2019USD ($) | |
Restructuring Cost and Reserve [Line Items] | |
Restructuring Reserve | $ 87.6 |
Net charges to earnings | 17.6 |
Cash paid | 22.8 |
Non-cash and other | (1) |
Foreign currency translation | (2.9) |
Restructuring Reserve | 78.5 |
Fixed Asset Related Costs | |
Restructuring Cost and Reserve [Line Items] | |
Restructuring Reserve | 6.7 |
Net charges to earnings | 2.3 |
Cash paid | 0 |
Non-cash and other | 0 |
Foreign currency translation | (0.2) |
Restructuring Reserve | 8.8 |
Other Costs | |
Restructuring Cost and Reserve [Line Items] | |
Restructuring Reserve | 8.4 |
Net charges to earnings | 6.2 |
Cash paid | 5.6 |
Non-cash and other | 0 |
Foreign currency translation | (0.1) |
Restructuring Reserve | 8.9 |
Employee Costs | |
Restructuring Cost and Reserve [Line Items] | |
Restructuring Reserve | 72.5 |
Net charges to earnings | 9.1 |
Cash paid | 17.2 |
Non-cash and other | (1) |
Foreign currency translation | (2.6) |
Restructuring Reserve | $ 60.8 |
Restructuring Plans Restructuri
Restructuring Plans Restructuring Plan Costs (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | 13 Months Ended | |
Sep. 30, 2019 | Sep. 30, 2018 | Jun. 30, 2019 | Sep. 30, 2019 | |
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring Charges | $ 17.6 | $ 130.8 | $ 148.4 | |
2018 Rigid Packaging Restructuring Plan | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring Charges | 3.4 | 64.1 | 67.5 | |
2019 Bemis Integration Plan | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring Charges | 13.9 | 47.9 | 61.8 | |
Other Restructuring Plans | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring Charges | $ 0.3 | $ 2.4 | $ 18.8 | $ 19.1 |
Inventories Schedule of Current
Inventories Schedule of Current Inventories (Details) - USD ($) $ in Millions | Sep. 30, 2019 | Jun. 30, 2019 |
Inventory, Net [Abstract] | ||
Raw materials and supplies | $ 865.8 | $ 864.6 |
Work in process and finished goods | 1,107 | 1,180.9 |
Less: inventory reserves | (98.4) | (91.7) |
Inventories, net | $ 1,874.4 | $ 1,953.8 |
Goodwill and Other Intangible_3
Goodwill and Other Intangible Assets (Details) - USD ($) $ in Millions | 3 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Jun. 30, 2019 | |
Acquired Finite-Lived Intangible Assets [Line Items] | |||
Gross Carrying Amount | $ 2,502.5 | $ 2,625.6 | |
Goodwill, Impaired, Accumulated Impairment Loss | 4 | ||
Amortization of Intangible Assets | 73.5 | $ 8.1 | |
Intellectual Property | |||
Acquired Finite-Lived Intangible Assets [Line Items] | |||
Gross Carrying Amount | $ 14 | $ 14.2 |
Goodwill and Other Intangible_4
Goodwill and Other Intangible Assets Changes in Carrying Amount of Goodwill (Details) - USD ($) $ in Millions | 3 Months Ended | |
Sep. 30, 2019 | Jun. 30, 2019 | |
Goodwill [Line Items] | ||
Goodwill | $ 5,117.3 | $ 5,156 |
Acquisition and acquisition adjustments | (6.6) | |
Currency translation | (32.1) | |
Flexibles Segment | ||
Goodwill [Line Items] | ||
Goodwill | 4,143.6 | 4,180.8 |
Acquisition and acquisition adjustments | (6.6) | |
Currency translation | (30.6) | |
Rigid Packaging Segment | ||
Goodwill [Line Items] | ||
Goodwill | 973.7 | $ 975.2 |
Acquisition and acquisition adjustments | 0 | |
Currency translation | $ (1.5) |
Goodwill and Other Intangible_5
Goodwill and Other Intangible Assets Components of Intangible Assets (Details) - USD ($) $ in Millions | Sep. 30, 2019 | Jun. 30, 2019 |
Acquired Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | $ 2,502.5 | $ 2,625.6 |
Accumulated Amortization and Impairment | (379.5) | (318.8) |
Net Carrying Amount | 2,123 | 2,306.8 |
Customer relationships | ||
Acquired Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | 1,945.1 | 2,053.7 |
Accumulated Amortization and Impairment | (173.5) | (144) |
Net Carrying Amount | 1,771.6 | 1,909.7 |
Computer software | ||
Acquired Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | 228.2 | 221.3 |
Accumulated Amortization and Impairment | (124.9) | (127) |
Net Carrying Amount | 103.3 | 94.3 |
Other | ||
Acquired Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | 329.2 | 350.6 |
Accumulated Amortization and Impairment | (81.1) | (47.8) |
Net Carrying Amount | $ 248.1 | $ 302.8 |
Fair Value Measurements Carryin
Fair Value Measurements Carrying Value and Fair Value of Long-Term Debt (Details) - USD ($) $ in Millions | Sep. 30, 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) | $ 2,536.2 | $ 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) | $ 2,650 | $ 3,041.3 |
Fair Value Measurements Assets
Fair Value Measurements Assets and Liabilities Measured at Fair Value on a Recurring Basis (Details) - USD ($) $ in Millions | Sep. 30, 2019 | Jun. 30, 2019 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative asset | $ 46.5 | $ 38.3 |
Derivative liabilities | 12 | 13.9 |
Level 1 | Recurring | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative asset | 0 | 0 |
Contingent purchase consideration liabilities | 0 | 0 |
Derivative liabilities | 0 | 0 |
Level 2 | Recurring | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative asset | 46.5 | 38.3 |
Contingent purchase consideration liabilities | 0 | 0 |
Derivative liabilities | 12 | 13.9 |
Level 3 | Recurring | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative asset | 0 | 0 |
Contingent purchase consideration liabilities | 13.6 | 13.6 |
Derivative liabilities | 13.6 | 13.6 |
Total | Recurring | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative asset | 46.5 | 38.3 |
Contingent purchase consideration liabilities | 13.6 | 13.6 |
Derivative liabilities | 25.6 | 27.5 |
Commodity contracts | Level 1 | Recurring | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative asset | 0 | 0 |
Derivative liabilities | 0 | 0 |
Commodity contracts | Level 2 | Recurring | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative asset | 0 | 0 |
Derivative liabilities | 4.6 | 4.6 |
Commodity contracts | Level 3 | Recurring | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative asset | 0 | 0 |
Derivative liabilities | 0 | 0 |
Commodity contracts | Total | Recurring | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative asset | 0 | 0 |
Derivative liabilities | 4.6 | 4.6 |
Forward exchange contracts | Level 1 | Recurring | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative asset | 0 | 0 |
Derivative liabilities | 0 | 0 |
Forward exchange contracts | Level 2 | Recurring | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative asset | 11.3 | 5.5 |
Derivative liabilities | 7.4 | 9.3 |
Forward exchange contracts | Level 3 | Recurring | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative asset | 0 | 0 |
Derivative liabilities | 0 | 0 |
Forward exchange contracts | Total | Recurring | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative asset | 11.3 | 5.5 |
Derivative liabilities | 7.4 | 9.3 |
Interest rate swaps | Level 1 | Recurring | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative asset | 0 | 0 |
Derivative liabilities | 0 | 0 |
Interest rate swaps | Level 2 | Recurring | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative asset | 32.8 | 32.8 |
Derivative liabilities | 0 | 0 |
Interest rate swaps | Level 3 | Recurring | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative asset | 0 | 0 |
Derivative liabilities | 0 | 0 |
Interest rate swaps | Total | Recurring | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative asset | 32.8 | 32.8 |
Derivative liabilities | 0 | $ 0 |
Cross currency interest rate swaps | Level 1 | Recurring | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative asset | 0 | |
Cross currency interest rate swaps | Level 2 | Recurring | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative asset | 2.4 | |
Cross currency interest rate swaps | Level 3 | Recurring | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative asset | 0 | |
Cross currency interest rate swaps | Total | Recurring | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative asset | $ 2.4 |
Derivative Instruments (Details
Derivative Instruments (Details) - USD ($) $ in Millions | Sep. 30, 2019 | Jun. 30, 2019 |
Cross currency interest rate swaps | ||
Derivative [Line Items] | ||
Derivative, Notional Amount | $ 100 | |
Interest rate swaps | ||
Derivative [Line Items] | ||
Derivative, Notional Amount | 828.3 | $ 841.1 |
Forward exchange contracts | ||
Derivative [Line Items] | ||
Derivative, Notional Amount | 1,300 | $ 1,000 |
Net investment hedge | ||
Derivative [Line Items] | ||
Commercial Paper | $ 67 |
Derivative Instruments Outstand
Derivative Instruments Outstanding Commodity Contracts (Details) | Sep. 30, 2019 | Jun. 30, 2019 |
Commodity contracts | ||
Derivative [Line Items] | ||
Aluminum commodity contracts | 34,571 | 29,342 |
Derivative Instruments Derivati
Derivative Instruments Derivative Instrument Financial Statement Location (Details) - USD ($) $ in Millions | Sep. 30, 2019 | Jun. 30, 2019 |
Derivatives, Fair Value [Line Items] | ||
Derivative asset | $ 46.5 | $ 38.3 |
Derivative liabilities | 12 | 13.9 |
Other current assets | ||
Derivatives, Fair Value [Line Items] | ||
Derivative asset | 13.6 | 5.1 |
Other non-current assets | ||
Derivatives, Fair Value [Line Items] | ||
Derivative asset | 32.9 | 33.2 |
Other current liabilities | ||
Derivatives, Fair Value [Line Items] | ||
Derivative liabilities | 12 | 13.2 |
Other non-current liabilities | ||
Derivatives, Fair Value [Line Items] | ||
Derivative liabilities | 0 | 0.7 |
Forward exchange contracts | Not designated as hedging instrument | Other current assets | ||
Derivatives, Fair Value [Line Items] | ||
Derivative asset | 8.3 | 2.7 |
Forward exchange contracts | Not designated as hedging instrument | Other non-current assets | ||
Derivatives, Fair Value [Line Items] | ||
Derivative asset | 0.1 | 0.4 |
Forward exchange contracts | Not designated as hedging instrument | Other current liabilities | ||
Derivatives, Fair Value [Line Items] | ||
Derivative liabilities | 5.4 | 7.1 |
Forward exchange contracts | Not designated as hedging instrument | Other non-current liabilities | ||
Derivatives, Fair Value [Line Items] | ||
Derivative liabilities | 0 | 0.4 |
Cross currency interest rate swaps | Not designated as hedging instrument | Other current assets | ||
Derivatives, Fair Value [Line Items] | ||
Derivative asset | 2.4 | 0 |
Cash flow hedging | Commodity contracts | Other current liabilities | ||
Derivatives, Fair Value [Line Items] | ||
Derivative liabilities | 4.6 | 4.6 |
Cash flow hedging | Forward exchange contracts | Other current assets | ||
Derivatives, Fair Value [Line Items] | ||
Derivative asset | 2.9 | 2.4 |
Cash flow hedging | Forward exchange contracts | Other current liabilities | ||
Derivatives, Fair Value [Line Items] | ||
Derivative liabilities | 2 | 1.5 |
Cash flow hedging | Forward exchange contracts | Other non-current liabilities | ||
Derivatives, Fair Value [Line Items] | ||
Derivative liabilities | 0 | 0.3 |
Fair value hedging | Interest rate swaps | Other non-current assets | ||
Derivatives, Fair Value [Line Items] | ||
Derivative asset | $ 32.8 | $ 32.8 |
Derivative Instruments Effects
Derivative Instruments Effects of Derivatives on AOCI and Statement of Income (Details) - USD ($) $ in Millions | 3 Months Ended | |
Sep. 30, 2019 | Sep. 30, 2018 | |
Fair value hedging | ||
Derivative [Line Items] | ||
Gain (Loss) Recognized in Income for Derivatives in Fair Value Hedging Relationships | $ (0.1) | $ (3.7) |
Fair value hedging | Interest expense | Interest rate swaps | ||
Derivative [Line Items] | ||
Gain (Loss) Recognized in Income for Derivatives in Fair Value Hedging Relationships | (0.1) | (3.7) |
Cash flow hedging | ||
Derivative [Line Items] | ||
Gain (Loss) Reclassified from AOCI into Income (Effective Portion) | (1.8) | 0.8 |
Cash flow hedging | Cost of sales | Commodity contracts | ||
Derivative [Line Items] | ||
Gain (Loss) Reclassified from AOCI into Income (Effective Portion) | (1.5) | 0.5 |
Cash flow hedging | Cost of sales | Forward exchange contracts | ||
Derivative [Line Items] | ||
Gain (Loss) Reclassified from AOCI into Income (Effective Portion) | 0.1 | 0.2 |
Cash flow hedging | Net sales | Forward exchange contracts | ||
Derivative [Line Items] | ||
Gain (Loss) Reclassified from AOCI into Income (Effective Portion) | (0.4) | 0.1 |
Not designated as hedging instrument | ||
Derivative [Line Items] | ||
Gain (Loss) Recognized in Income for Derivatives not Designated as Hedging Instruments | (2.7) | (0.7) |
Not designated as hedging instrument | Other income, net | Forward exchange contracts | ||
Derivative [Line Items] | ||
Gain (Loss) Recognized in Income for Derivatives not Designated as Hedging Instruments | (0.3) | (0.6) |
Not designated as hedging instrument | Other income, net | Cross currency interest rate swaps | ||
Derivative [Line Items] | ||
Gain (Loss) Recognized in Income for Derivatives not Designated as Hedging Instruments | $ (2.4) | $ (0.1) |
Leases (Details)
Leases (Details) $ in Millions | Sep. 30, 2019USD ($) |
Leases [Abstract] | |
Capital Leases, Lessee Balance Sheet, Assets by Major Class, Accumulated Depreciation | $ 7.8 |
Leases Lease Cost (Details)
Leases Lease Cost (Details) $ in Millions | 3 Months Ended |
Sep. 30, 2019USD ($) | |
Lessee, Lease, Description [Line Items] | |
Operating Lease, Cost | $ 28.4 |
Cost of sales | |
Lessee, Lease, Description [Line Items] | |
Operating Lease, Cost | 22.7 |
Selling, General and Administrative Expenses [Member] | |
Lessee, Lease, Description [Line Items] | |
Operating Lease, Cost | $ 5.7 |
Leases Lease Information Relate
Leases Lease Information Related to Balance Sheet (Details) - USD ($) $ in Millions | Sep. 30, 2019 | Jul. 01, 2019 | Jun. 30, 2019 |
Leases [Abstract] | |||
Operating lease assets | $ 569.8 | $ 569.8 | $ 0 |
Finance lease assets (1) | 2.3 | ||
Total lease assets | 572.1 | ||
Current operating lease liabilities | 83.7 | ||
Operating lease liabilities | 506.8 | $ 506.8 | $ 0 |
Current finance lease liabilities | 1.3 | ||
Non-current finance lease liabilities | 2.9 | ||
Lease Liabilities, Total | $ 594.7 |
Leases Lease Information Rela_2
Leases Lease Information Related to Cash Flow (Details) $ in Millions | 3 Months Ended |
Sep. 30, 2019USD ($) | |
Leases [Abstract] | |
Operating cash flows from operating leases | $ 27 |
Operating lease assets obtained in exchange for lease obligations | 25.7 |
Finance lease assets obtained in exchange for lease obligations | $ 0.8 |
Leases ASC 842 Lease Maturity T
Leases ASC 842 Lease Maturity Table (Details) $ in Millions | Sep. 30, 2019USD ($) |
Leases [Abstract] | |
Finance Lease, Liability, Payments, Remainder of Fiscal Year | $ 1.4 |
Lessee, Operating Lease, Liability, Payments, Remainder of Fiscal Year | 82.8 |
Finance Lease, Liability, Payments, Due Year Two | 1.1 |
Lessee, Operating Lease, Liability, Payments, Due Year Two | 94.2 |
Finance Lease, Liability, Payments, Due Year Three | 1 |
Lessee, Operating Lease, Liability, Payments, Due Year Three | 82.5 |
Finance Lease, Liability, Payments, Due Year Four | 0.8 |
Lessee, Operating Lease, Liability, Payments, Due Year Four | 71.7 |
Finance Lease, Liability, Payments, Due Year Five | 0.7 |
Lessee, Operating Lease, Liability, Payments, Due Year Five | 61.3 |
Finance Lease, Liability, Payments, Due after Year Five | 0.3 |
Lessee, Operating Lease, Liability, Payments, Due after Year Five | 351 |
Finance Lease, Liability, Payment, Due | 5.3 |
Lessee, Operating Lease, Liability, Payments, Due | 743.5 |
Finance Lease, Liability, Undiscounted Excess Amount | 1.1 |
Lessee, Operating Lease, Liability, Undiscounted Excess Amount | 153 |
Finance Lease, Liability | 4.2 |
Operating Lease, Liability | $ 590.5 |
Leases ASC 840 Lease Maturity T
Leases ASC 840 Lease Maturity Table (Details) $ in Millions | Jun. 30, 2019USD ($) |
Leases [Abstract] | |
Operating Leases, Future Minimum Payments Due, Next Twelve Months | $ 97.6 |
Operating Leases, Future Minimum Payments, Due in Two Years | 90.4 |
Operating Leases, Future Minimum Payments, Due in Three Years | 77.7 |
Operating Leases, Future Minimum Payments, Due in Four Years | 67.3 |
Operating Leases, Future Minimum Payments, Due in Five Years | 55.9 |
Operating Leases, Future Minimum Payments, Due Thereafter | 301.8 |
Operating Leases, Future Minimum Payments Due | $ 690.7 |
Leases Weighted Average Discoun
Leases Weighted Average Discount Rate and Lease Term Information (Details) | Sep. 30, 2019 |
Leases [Abstract] | |
Operating Lease, Weighted Average Remaining Lease Term | 10 years 2 months 12 days |
Finance Lease, Weighted Average Remaining Lease Term | 4 years 1 month 6 days |
Operating Lease, Weighted Average Discount Rate, Percent | 4.30% |
Finance Lease, Weighted Average Discount Rate, Percent | 10.00% |
Components of Net Periodic Be_3
Components of Net Periodic Benefit Costs Components of Net Periodic Benefit Costs (Details) - USD ($) $ in Millions | 3 Months Ended | |
Sep. 30, 2019 | Sep. 30, 2018 | |
Components of Net Periodic Benefit Cost [Abstract] | ||
Service cost | $ 6.2 | $ 3.9 |
Interest cost | 12.3 | 6.7 |
Expected return on plan assets | (18) | (8.4) |
Amortization of net loss | 1.5 | 1 |
Amortization of prior service credit | (0.4) | (0.5) |
Net periodic benefit cost | $ 1.6 | $ 2.7 |
Income Taxes (Details)
Income Taxes (Details) - USD ($) $ in Millions | 3 Months Ended | |
Sep. 30, 2019 | Sep. 30, 2018 | |
Income Taxes [Abstract] | ||
Income tax expense | $ (21.8) | $ (21.7) |
Effective Tax Rate Change, Percent | 5.10% | |
Effective Income Tax Rate Reconciliation, Percent | 22.90% | 17.80% |
Shareholders' Equity (Details)
Shareholders' Equity (Details) - USD ($) $ in Millions | 3 Months Ended | |
Sep. 30, 2019 | Sep. 30, 2018 | |
Foreign Currency Translation | ||
Reclassification Adjustment out of Accumulated Other Comprehensive Income on Derivatives [Line Items] | ||
Amounts reclassified from accumulated other comprehensive income (loss) | $ 8.8 | $ 0 |
Shareholders' Equity Changes in
Shareholders' Equity Changes in Ordinary and Treasury Shares (Details) - USD ($) shares in Millions, $ in Millions | 3 Months Ended | |
Sep. 30, 2019 | Sep. 30, 2018 | |
Beginning Balance | $ 5,674.7 | $ 695.4 |
Settlement of forward contracts to purchase own equity to meet share based incentive plans, net of tax | 0 | |
Purchase of treasury shares | 10.2 | 21.2 |
Share buyback/cancellations | 58.3 | |
Ending Balance | $ 5,491.4 | $ 516.1 |
Ordinary Shares | ||
Beginning Balance | 1,625.9 | 1,158.1 |
Beginning Balance | $ 16.3 | $ 0 |
Stock Repurchased and Retired During Period, Shares | (5.8) | |
Share buyback/cancellations | $ 0.1 | |
Ending Balance | 1,620.1 | 1,158.1 |
Ending Balance | $ 16.2 | $ 0 |
Treasury Shares | ||
Beginning Balance | 1.4 | 0.9 |
Beginning Balance | $ (16.1) | $ (10.7) |
Options exercised and shares vested | 1.4 | 2.6 |
Options exercised and shares vested | $ 14.8 | $ 26.7 |
Settlement of forward contracts to purchase own equity to meet share base incentive plans, net of tax | 2.5 | |
Settlement of forward contracts to purchase own equity to meet share based incentive plans, net of tax | $ (25.1) | |
Purchase of treasury shares | 1.1 | 2.1 |
Purchase of treasury shares | $ 10.2 | $ 21.2 |
Ending Balance | 1.1 | 2.9 |
Ending Balance | $ (11.5) | $ (30.3) |
Shareholders' Equity Components
Shareholders' Equity Components of Accumulated Other Comprehensive Income (Details) - USD ($) $ in Millions | 3 Months Ended | |||
Sep. 30, 2019 | Sep. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | |
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
Accumulated other comprehensive income (loss) | $ (773.5) | $ (722.4) | ||
Foreign Currency Translation | ||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
Other comprehensive income (loss) before reclassifications | (59.5) | $ 33.5 | ||
Amounts reclassified from accumulated other comprehensive income (loss) | 8.8 | 0 | ||
Net current period other comprehensive income (loss) | (50.7) | 33.5 | ||
Accumulated other comprehensive income (loss) | (660.1) | (635.8) | (609.4) | $ (669.3) |
Net Investment Hedge | ||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
Other comprehensive income (loss) before reclassifications | (1.9) | (24.9) | ||
Amounts reclassified from accumulated other comprehensive income (loss) | 0 | 0 | ||
Net current period other comprehensive income (loss) | (1.9) | (24.9) | ||
Accumulated other comprehensive income (loss) | (13.1) | (24.9) | (11.2) | 0 |
Pension | ||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
Other comprehensive income (loss) before reclassifications | 0 | (0.1) | ||
Amounts reclassified from accumulated other comprehensive income (loss) | 0.9 | 0.4 | ||
Net current period other comprehensive income (loss) | (0.9) | (0.3) | ||
Accumulated other comprehensive income (loss) | (88.7) | (30.3) | (89.6) | (30.6) |
Effective Derivatives | ||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
Other comprehensive income (loss) before reclassifications | (1.2) | (1.4) | ||
Amounts reclassified from accumulated other comprehensive income (loss) | 1.8 | (0.8) | ||
Net current period other comprehensive income (loss) | 0.6 | (2.2) | ||
Accumulated other comprehensive income (loss) | (11.6) | (10.8) | (12.2) | (8.6) |
Accumulated Other Comprehensive Income (Loss) | ||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
Other comprehensive income (loss) before reclassifications | (62.6) | 7.1 | ||
Amounts reclassified from accumulated other comprehensive income (loss) | 11.5 | (0.4) | ||
Net current period other comprehensive income (loss) | (51.1) | 6.7 | ||
Accumulated other comprehensive income (loss) | $ (773.5) | $ (701.8) | $ (722.4) | $ (708.5) |
Shareholders' Equity Amounts Re
Shareholders' Equity Amounts Reclassified from Accumulated Other Comprehensive Income (Details) - USD ($) $ in Millions | 3 Months Ended | |
Sep. 30, 2019 | Sep. 30, 2018 | |
Reclassification Adjustment out of Accumulated Other Comprehensive Income on Derivatives [Line Items] | ||
Cost of Goods and Services Sold | $ 2,594 | $ 1,868.6 |
Total before tax effect | 95.2 | 121.5 |
Tax benefit on amounts reclassified into earnings | (21.8) | (21.7) |
Net income attributable to Amcor plc | 66 | 98.4 |
Reclassification out of Accumulated Other Comprehensive Income [Member] | Accumulated Defined Benefit Plans Adjustment, Net Prior Service Including Portion Attributable to Noncontrolling Interest | ||
Reclassification Adjustment out of Accumulated Other Comprehensive Income on Derivatives [Line Items] | ||
Cost of Goods and Services Sold | (0.4) | (0.5) |
Reclassification out of Accumulated Other Comprehensive Income [Member] | Accumulated Defined Benefit Plans Adjustment, Net Gain (Loss) Including Portion Attributable to Noncontrolling Interest | ||
Reclassification Adjustment out of Accumulated Other Comprehensive Income on Derivatives [Line Items] | ||
Cost of Goods and Services Sold | 1.5 | 1 |
Reclassification out of Accumulated Other Comprehensive Income [Member] | Accumulated Defined Benefit Plans Adjustment Including Portion Attributable to Noncontrolling Interest | ||
Reclassification Adjustment out of Accumulated Other Comprehensive Income on Derivatives [Line Items] | ||
Total before tax effect | 1.1 | 0.5 |
Tax benefit on amounts reclassified into earnings | (0.2) | (0.1) |
Net income attributable to Amcor plc | 0.9 | 0.4 |
Reclassification out of Accumulated Other Comprehensive Income [Member] | Accumulated Foreign Currency Adjustment Attributable to Parent | ||
Reclassification Adjustment out of Accumulated Other Comprehensive Income on Derivatives [Line Items] | ||
Total before tax effect | 8.8 | 0 |
Tax benefit on amounts reclassified into earnings | 0 | 0 |
Net income attributable to Amcor plc | 8.8 | 0 |
Reclassification out of Accumulated Other Comprehensive Income [Member] | Accumulated Net Gain (Loss) from Cash Flow Hedges Including Portion Attributable to Noncontrolling Interest | ||
Reclassification Adjustment out of Accumulated Other Comprehensive Income on Derivatives [Line Items] | ||
Total before tax effect | 1.8 | (0.8) |
Tax benefit on amounts reclassified into earnings | 0 | 0 |
Net income attributable to Amcor plc | 1.8 | (0.8) |
Commodity contracts | Reclassification out of Accumulated Other Comprehensive Income [Member] | Accumulated Net Gain (Loss) from Cash Flow Hedges Including Portion Attributable to Noncontrolling Interest | ||
Reclassification Adjustment out of Accumulated Other Comprehensive Income on Derivatives [Line Items] | ||
Cost of Goods and Services Sold | 1.5 | (0.5) |
Forward exchange contracts | Reclassification out of Accumulated Other Comprehensive Income [Member] | Accumulated Foreign Currency Adjustment Attributable to Parent | ||
Reclassification Adjustment out of Accumulated Other Comprehensive Income on Derivatives [Line Items] | ||
Cost of Goods and Services Sold | 8.8 | 0 |
Forward exchange contracts | Reclassification out of Accumulated Other Comprehensive Income [Member] | Accumulated Net Gain (Loss) from Cash Flow Hedges Including Portion Attributable to Noncontrolling Interest | ||
Reclassification Adjustment out of Accumulated Other Comprehensive Income on Derivatives [Line Items] | ||
Cost of Goods and Services Sold | $ 0.3 | $ (0.3) |
Segments (Details)
Segments (Details) - USD ($) $ in Millions | 3 Months Ended | |
Sep. 30, 2019 | Sep. 30, 2018 | |
Bemis Acquisition | ||
Segment Reporting Information [Line Items] | ||
Inventory Fair Value Step-Up, Business Combinations | $ 58 | |
Business Combination Transaction Related Costs Not Qualifying as Exit Costs | 25.6 | |
Sales Backlog Amortization, Business Combinations | $ 25.9 | |
Revenue Benchmark | ||
Segment Reporting Information [Line Items] | ||
Concentration Risk, Percentage | 12.10% |
Segments Reportable Segment Sum
Segments Reportable Segment Summary Information (Details) - USD ($) $ in Millions | 3 Months Ended | |
Sep. 30, 2019 | Sep. 30, 2018 | |
Segment Reporting Information [Line Items] | ||
Net sales | $ 3,140.7 | $ 2,262.4 |
Adjusted EBIT from continuing operations | (335.1) | (211.4) |
Material Restructuring Programs | (17.3) | (10.1) |
Equity Method Investment, Other than Temporary Impairment | 0 | (2.5) |
Material Acquisition Costs and Other | (83.6) | (5.3) |
Amortization of Acquired Intangible Assets in Business Combinations | (68.3) | (4.8) |
Economic Net Investment Hedging Activities Not Qualifying For Hedge Accounting | 0 | (2.7) |
Impact of Hyperinflation | (15.4) | (9.4) |
EBIT From Continuing Operations | 150.5 | 176.6 |
Interest income | 6.7 | 2.9 |
Interest expense | (59.7) | (56.3) |
Equity in (income) of affiliated companies | (2.3) | (1.7) |
Income (Loss) from Continuing Operations before Income Taxes, Noncontrolling Interest | 95.2 | 121.5 |
Flexibles Segment | ||
Segment Reporting Information [Line Items] | ||
Adjusted EBIT from continuing operations | (290.5) | (157.5) |
Rigid Packaging Segment | ||
Segment Reporting Information [Line Items] | ||
Adjusted EBIT from continuing operations | (70.5) | (68.3) |
Other Segment | ||
Segment Reporting Information [Line Items] | ||
Adjusted EBIT from continuing operations | (25.9) | (14.4) |
Reportable segments | ||
Segment Reporting Information [Line Items] | ||
Net sales | 3,141.4 | 2,262.8 |
Reportable segments | Flexibles Segment | ||
Segment Reporting Information [Line Items] | ||
Net sales | 2,430.8 | 1,533.8 |
Reportable segments | Rigid Packaging Segment | ||
Segment Reporting Information [Line Items] | ||
Net sales | 710.6 | 729 |
Reportable segments | Other Segment | ||
Segment Reporting Information [Line Items] | ||
Net sales | 0 | 0 |
Intersegment eliminations | ||
Segment Reporting Information [Line Items] | ||
Net sales | 0.7 | 0.4 |
Intersegment eliminations | Flexibles Segment | ||
Segment Reporting Information [Line Items] | ||
Net sales | 0.7 | 0.4 |
Intersegment eliminations | Rigid Packaging Segment | ||
Segment Reporting Information [Line Items] | ||
Net sales | 0 | 0 |
Intersegment eliminations | Other Segment | ||
Segment Reporting Information [Line Items] | ||
Net sales | $ 0 | $ 0 |
Segments Segment Disaggregation
Segments Segment Disaggregation of Sales (Details) - USD ($) $ in Millions | 3 Months Ended | |
Sep. 30, 2019 | Sep. 30, 2018 | |
Disaggregation of Revenue [Line Items] | ||
Net sales | $ 3,140.7 | $ 2,262.4 |
North America | ||
Disaggregation of Revenue [Line Items] | ||
Net sales | 1,492.9 | 772.2 |
Latin America | ||
Disaggregation of Revenue [Line Items] | ||
Net sales | 388.7 | 263.3 |
Europe | ||
Disaggregation of Revenue [Line Items] | ||
Net sales | 885.5 | 885.2 |
Asia Pacific | ||
Disaggregation of Revenue [Line Items] | ||
Net sales | $ 373.6 | $ 341.7 |
Earnings Per Share Computatio_3
Earnings Per Share Computations (Details) - shares shares in Millions | 3 Months Ended | |
Sep. 30, 2019 | Sep. 30, 2018 | |
Earnings Per Share Computations [Abstract] | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount | 17.3 | 7.6 |
Earnings Per Share Computatio_4
Earnings Per Share Computations Schedule of Earnings Per Share (Details) - USD ($) $ / shares in Units, shares in Millions, $ in Millions | 3 Months Ended | |
Sep. 30, 2019 | Sep. 30, 2018 | |
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Weighted-average ordinary shares outstanding for EPS—basic | 1,623.5 | 1,156.5 |
Net income attributable to Amcor plc | $ 66 | $ 98.4 |
Distributed and undistributed earnings attributable to shares to be repurchased | 0 | (0.2) |
Net income available to ordinary shareholders of Amcor plc—basic and diluted | 66 | 98.2 |
Net income available to ordinary shareholders of Amcor plc from continuing operations—basic and diluted | 73.7 | 98.2 |
Net income available to ordinary shareholders of Amcor plc from discontinued operations—basic and diluted | $ (7.7) | $ 0 |
Weighted-average ordinary shares to be repurchased by Amcor plc | (0.3) | (2.5) |
Effect of dilutive shares | 2.9 | 4.7 |
Weighted-average ordinary shares outstanding for EPS—diluted | 1,626.1 | 1,158.7 |
Income from continuing operations | $ 0.05 | $ 0.09 |
Income from discontinued operations | (0.01) | 0 |
Net income | 0.04 | 0.09 |
Income from continuing operations | 0.05 | 0.08 |
Income from discontinued operations | (0.01) | 0 |
Diluted earnings per ordinary share | $ 0.04 | $ 0.08 |
Excluding forward contracts to purchase own shares | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Weighted-average ordinary shares outstanding for EPS—basic | 1,623.2 | 1,154 |
Contingencies and Legal Proce_2
Contingencies and Legal Proceedings (Details) $ in Millions | 3 Months Ended | |
Sep. 30, 2019USD ($) | Jun. 30, 2019USD ($) | |
Contingencies and Legal Proceedings [Abstract] | ||
Loss Contingency Accrual, Provision | $ 15.3 | $ 16.4 |
Loss Contingency, Estimate of Possible Loss | 25.5 | $ 23.7 |
Loss Contingency, Letters of Credit | 42.2 | |
Loss Contingency, Cash Deposited | $ 13.1 | |
Number of Shareholders In Lawsuit Notification | 2 | |
Number of Lawsuits | 2 |
Subsequent Events (Details)
Subsequent Events (Details) - $ / shares | 1 Months Ended | 3 Months Ended | |
Nov. 07, 2019 | Sep. 30, 2019 | Sep. 30, 2018 | |
Subsequent Event [Line Items] | |||
Dividends declared, per share | $ 0.12 | $ 0.24 | |
Subsequent Event | |||
Subsequent Event [Line Items] | |||
Dividends declared, per share | $ 0.12 |