SEC Info℠ | Home | Search | My Interests | Help | Sign In | Please Sign In | ||||||||||||||||||||
As Of Filer Filing For·On·As Docs:Size 2/11/20 Amcor plc 10-Q 12/31/19 94:11M |
Document/Exhibit Description Pages Size 1: 10-Q Quarterly Report HTML 1.54M 2: EX-31.1 Certification -- §302 - SOA'02 HTML 32K 3: EX-31.2 Certification -- §302 - SOA'02 HTML 32K 4: EX-32 Certification -- §906 - SOA'02 HTML 27K 17: R1 Cover Page HTML 80K 71: R2 Condensed Consolidated Statement of Income HTML 126K 83: R3 Condensed Consolidated Statement of Comprehensive HTML 71K Income 47: R4 Condensed Consolidated Balance Sheet HTML 161K 16: R5 Condensed Consolidated Balance Sheet HTML 35K (Parenthetical) 70: R6 Condensed Consolidated Statement of Cash Flows HTML 133K 82: R7 Condensed Consolidated Statement of Equity HTML 88K 48: R8 Condensed Consolidated Statement of Equity HTML 27K (Parenthetical) 15: R9 Nature of Operations and Basis of Presentation HTML 31K 20: R10 New Accounting Guidance HTML 54K 31: R11 Acquisitions HTML 74K 87: R12 Discontinued Operations HTML 42K 54: R13 Restructuring Plans HTML 79K 21: R14 Inventories, Net HTML 37K 32: R15 Goodwill and Other Intangible Assets HTML 72K 88: R16 Fair Value Measurements HTML 125K 56: R17 Derivative Instruments HTML 166K 22: R18 Leases HTML 101K 30: R19 Components of Net Periodic Benefit Cost HTML 54K 80: R20 Income Taxes HTML 32K 67: R21 Shareholders' Equity HTML 185K 18: R22 Segments HTML 156K 49: R23 Earnings Per Share Computations HTML 100K 81: R24 Contingencies and Legal Proceedings HTML 37K 68: R25 Subsequent Events HTML 28K 19: R26 New Accounting Guidance (Policies) HTML 40K 50: R27 New Accounting Guidance (Tables) HTML 45K 79: R28 Acquisitions (Tables) HTML 71K 69: R29 Discontinued Operations (Tables) HTML 45K 53: R30 Restructuring Plans (Tables) HTML 71K 85: R31 Inventories, Net (Tables) HTML 38K 34: R32 Goodwill and Other Intangible Assets (Tables) HTML 72K 24: R33 Fair Value Measurements (Tables) HTML 122K 52: R34 Derivative Instruments (Tables) HTML 163K 84: R35 Leases (Tables) HTML 103K 33: R36 Components of Net Periodic Benefit Cost (Tables) HTML 54K 23: R37 Shareholders' Equity (Tables) HTML 189K 51: R38 Segments (Tables) HTML 152K 86: R39 Earnings Per Share Computations (Tables) HTML 97K 66: R40 Nature of Operations and Basis of Presentation HTML 30K (Details) 77: R41 New Accounting Guidance - Narrative (Details) HTML 36K 43: R42 New Accounting Guidance - Leasing Guidance Balance HTML 47K Sheet Impact (Details) 11: R43 Acquisitions - Narrative (Details) HTML 66K 65: R44 Acquisitions - Bemis Fair Value Consideration HTML 36K (Details) 75: R45 Acquisitions - Bemis Identifiable Net Assets HTML 114K Acquired (Details) 42: R46 Acquisitions - Bemis Intangible Assets Acquired HTML 38K (Details) 10: R47 Discontinued Operations - Narrative (Details) HTML 31K 64: R48 Discontinued Operations Summary of Discontinued HTML 47K Operations (Details) 78: R49 Restructuring Plans - Narrative (Details) HTML 88K 93: R50 Restructuring Plans - Restructuring Plan Costs HTML 39K (Details) 59: R51 Restructuring Plans - Restructuring Plan Liability HTML 50K (Details) 25: R52 Inventories, Net (Details) HTML 36K 35: R53 Goodwill and Other Intangible Assets - Narrative HTML 38K (Details) 94: R54 Goodwill and Other Intangible Assets - Changes in HTML 39K Carrying Amount of Goodwill (Details) 60: R55 Goodwill and Other Intangible Assets - Components HTML 41K of Intangible Assets (Details) 26: R56 Fair Value Measurements - Carrying Value and Fair HTML 30K Value of Long-Term Debt (Details) 36: R57 Fair Value Measurements - Assets and Liabilities HTML 75K Measured at Fair Value on a Recurring Basis (Details) 92: R58 Derivative Instruments - Narrative (Details) HTML 39K 61: R59 Derivative Instruments - Outstanding Commodity HTML 29K Contracts (Details) 12: R60 Derivative Instruments - Financial Statement HTML 61K Location (Details) 45: R61 Derivative Instruments - Effects of Derivatives on HTML 56K AOCI and Statement of Income (Details) 73: R62 Leases - Components of Lease Expense (Details) HTML 32K 62: R63 Leases - Supplemental Balance Sheet Information HTML 43K (Details) 13: R64 Leases - Supplemental Cash Flow Information HTML 32K (Details) 46: R65 Leases - ASC 842 Lease Maturity (Details) HTML 66K 74: R66 Leases - ASC 840 Lease Maturity (Details) HTML 46K 63: R67 Leases - Weighted Average Discount Rate and HTML 35K Remaining Lease Term (Details) 14: R68 Components of Net Periodic Benefit Cost (Details) HTML 47K 44: R69 Income Taxes (Details) HTML 33K 39: R70 Shareholders' Equity - Narrative (Details) HTML 31K 29: R71 Shareholders' Equity - Changes in Ordinary and HTML 68K Treasury Shares (Details) 58: R72 Shareholders' Equity - Components of Accumulated HTML 59K Other Comprehensive Income (Loss) (Details) 91: R73 Shareholders' Equity - Amounts Reclassified from HTML 68K Accumulated Other Comprehensive Income (Loss) (Details) 38: R74 Segments - Narrative (Details) HTML 42K 28: R75 Segments - Reportable Segment Summary Information HTML 82K (Details) 57: R76 Segments - Segment Disaggregation of Sales HTML 38K (Details) 90: R77 Earnings Per Share Computations (Details) HTML 91K 41: R78 Earnings Per Share Computations - Narrative HTML 28K (Details) 27: R79 Contingencies and Legal Proceedings (Details) HTML 37K 40: R80 Subsequent Events (Details) HTML 30K 37: XML IDEA XML File -- Filing Summary XML 172K 89: XML XBRL Instance -- amcor2q2020form10-qxde_htm XML 3.41M 72: EXCEL IDEA Workbook of Financial Reports XLSX 97K 6: EX-101.CAL XBRL Calculations -- amcr-20191231_cal XML 268K 7: EX-101.DEF XBRL Definitions -- amcr-20191231_def XML 633K 8: EX-101.LAB XBRL Labels -- amcr-20191231_lab XML 1.58M 9: EX-101.PRE XBRL Presentations -- amcr-20191231_pre XML 1.04M 5: EX-101.SCH XBRL Schema -- amcr-20191231 XSD 160K 76: JSON XBRL Instance as JSON Data -- MetaLinks 388± 561K 55: ZIP XBRL Zipped Folder -- 0001748790-20-000010-xbrl Zip 322K
Document |
i Jersey | i 98-1455367
| |
(State or other jurisdiction of incorporation or organization) | (I.R.S. Employer Identification No.) |
Title of each class | Trading Symbol(s) | Name of each exchange on which registered | ||
i Ordinary Shares, Par Value
$0.01 Per Share | i AMCR | i New York Stock Exchange |
Large Accelerated Filer | ☐ | Emerging growth company | i ☐ |
i Non-Accelerated
Filer | ☒ | Smaller Reporting Company | i ☐ |
Accelerated Filer | ☐ |
• | We are exposed to changes in consumer demand patterns and customer requirements in numerous industries; |
• | the loss of key customers, a reduction in their production requirements or consolidation among key
customers which could have a significant adverse impact on our sales revenue and profitability; |
• | significant competition in the industries and regions in which we operate, which could adversely affect our business; |
• | the failure to realize the anticipated benefits of the acquisition of Bemis; |
• | the
failure to successfully integrate the business and operations of Bemis in the expected time frame may adversely affect our future results; |
• | we may be unable to expand our current business effectively through either organic growth, including by product innovation, or acquisitions; |
• | challenges to or the loss of our intellectual property rights, which could have an adverse impact on our ability to compete effectively; |
• | challenging
current and future global economic conditions, which have had, and may continue to have, a negative impact on our business operations and financial results; |
• | our international operations subject us to various risks that could adversely affect our business operations and financial results; |
• | price fluctuations or shortages in the availability of raw materials, energy and other inputs, which could adversely affect our business; |
• | we
are subject to production, supply and other commercial risks, including counterparty credit risks, which may be exacerbated in times of economic downturn; |
• | a failure in our information technology systems which could negatively affect our business; |
• | if we are unable to attract and retain key personnel, we may be adversely affected; |
• | we
are subject to costs and liabilities related to current and future environmental and health and safety laws and regulations that could adversely affect our business; |
• | we are subject to the risk of labor disputes, which could adversely affect our business; |
• | our financing agreements will need to be renegotiated if the London Interbank Offered Rate ("LIBOR") ceases to exist; |
• | we
are exposed to foreign exchange rate risk; |
• | an increase in interest rates could reduce our reported results of operations; |
• | a downgrade in our credit rating could increase our borrowing costs and negatively affect our financial condition and results of operations; |
• | failure to hedge effectively against
adverse fluctuations in interest rates and foreign exchange rates could negatively impact our results of operations; |
• | a significant write-down of goodwill and/or other intangible assets would have a material adverse effect on our reported results of operations and net worth; |
• | significant demands have been placed on our financial controls and reporting systems as a result of the acquisition of Bemis; |
• | if
we fail to maintain an effective system of internal control over financial reporting in the future, we may not be able to accurately report our financial condition, results of operations or cash flows, which may adversely affect investor confidence in us and, as a result, the value of our common stock; |
• | our insurance policies, including our use of a captive insurance company, may not provide adequate protection against all of the risks we face; |
• | litigation
or regulatory developments which could adversely affect our business operations and financial performance; |
• | changing government regulations in environmental, health, and safety matters which may adversely affect our company; and |
• | our success is dependent on our ability to develop and successfully introduce new products and to develop, acquire and retain intellectual property rights. |
Three Months Ended December 31, | Six Months Ended December 31, | |||||||||||||||
($
in millions, except per share data) | 2019 | 2018 | 2019 | 2018 | ||||||||||||
Net sales | $ | i 3,043.1 | $ | i 2,285.4 | $ | i 6,183.8 | $ | i 4,545.6 | ||||||||
Cost
of sales | ( i 2,425.8 | ) | ( i 1,832.4 | ) | ( i 5,019.8 | ) | ( i 3,701.0 | ) | ||||||||
Gross
profit | i 617.3 | i 453.0 | i 1,164.0 | i 844.6 | ||||||||||||
Operating
expenses: | ||||||||||||||||
Selling, general, and administrative expenses | ( i 308.3 | ) | ( i 205.3 | ) | ( i 680.2 | ) | ( i 403.6 | ) | ||||||||
Research
and development expenses | ( i 23.5 | ) | ( i 17.3 | ) | ( i 49.4 | ) | ( i 31.5 | ) | ||||||||
Restructuring
and related expenses | ( i 24.1 | ) | ( i 39.9 | ) | ( i 41.7 | ) | ( i 52.4 | ) | ||||||||
Other
income, net | i 10.9 | i 31.0 | i 20.2 | i 41.9 | ||||||||||||
Operating
income | i 272.3 | i 221.5 | i 412.9 | i 399.0 | ||||||||||||
Interest
income | i 6.3 | i 5.2 | i 13.0 | i 8.1 | ||||||||||||
Interest
expense | ( i 52.3 | ) | ( i 52.1 | ) | ( i 112.0 | ) | ( i 108.4 | ) | ||||||||
Other
non-operating income (loss), net | i 4.4 | i 5.7 | i 12.0 | i 3.1 | ||||||||||||
Income
from continuing operations before income taxes and equity in income (loss) of affiliated companies | i 230.7 | i 180.3 | i 325.9 | i 301.8 | ||||||||||||
Income
tax expense | ( i 45.1 | ) | ( i 31.1 | ) | ( i 66.9 | ) | ( i 52.8 | ) | ||||||||
Equity
in income (loss) of affiliated companies, net of tax | i 2.2 | ( i 8.6 | ) | i 4.5 | ( i 6.9 | ) | ||||||||||
Income
from continuing operations | i 187.8 | i 140.6 | i 263.5 | i 242.1 | ||||||||||||
Income
(loss) from discontinued operations, net of tax | i — | i — | ( i 7.7 | ) | i — | |||||||||||
Net
income | $ | i 187.8 | $ | i 140.6 | $ | i 255.8 | $ | i 242.1 | ||||||||
Net
(income) loss attributable to non-controlling interests | $ | ( i 2.2 | ) | $ | ( i 2.0 | ) | $ | ( i 4.2 | ) | $ | ( i 5.1 | ) | ||||
Net
income attributable to Amcor plc | $ | i 185.6 | $ | i 138.6 | $ | i 251.6 | $ | i 237.0 | ||||||||
Basic
earnings per share: | ||||||||||||||||
Income from continuing operations | $ | i 0.115 | $ | i 0.120 | $ | i 0.160 | $ | i 0.205 | ||||||||
Income
from discontinued operations | i — | i — | ( i 0.005 | ) | i — | |||||||||||
Net
income | $ | i 0.115 | $ | i 0.120 | $ | i 0.155 | $ | i 0.205 | ||||||||
Diluted
earnings per share: | ||||||||||||||||
Income from continuing operations | $ | i 0.115 | $ | i 0.120 | $ | i 0.160 | $ | i 0.204 | ||||||||
Income
from discontinued operations | i — | i — | ( i 0.005 | ) | i — | |||||||||||
Net
income | $ | i 0.115 | $ | i 0.120 | $ | i 0.155 | $ | i 0.204 |
Three
Months Ended December 31, | Six Months Ended December 31, | |||||||||||||||
($ in millions) | 2019 | 2018 | 2019 | 2018 | ||||||||||||
Net income | $ | i 187.8 | $ | i 140.6 | $ | i 255.8 | $ | i 242.1 | ||||||||
Other
comprehensive income (loss): | ||||||||||||||||
Net gains (losses) on cash flow hedges, net of tax (a) | i 2.5 | ( i 2.3 | ) | i 3.1 | ( i 4.5 | ) | ||||||||||
Foreign
currency translation adjustments, net of tax (b) | i 67.9 | ( i 20.8 | ) | i 17.2 | i 12.7 | |||||||||||
Net
investment hedge of foreign operations, net of tax (c) | ( i 0.1 | ) | i 10.8 | ( i 2.0 | ) | ( i 14.1 | ) | |||||||||
Pension,
net of tax (d) | i 0.6 | ( i 30.3 | ) | i 1.5 | ( i 30.0 | ) | ||||||||||
Other
comprehensive income (loss) | i 70.9 | ( i 42.6 | ) | i 19.8 | ( i 35.9 | ) | ||||||||||
Total
comprehensive income | i 258.7 | i 98.0 | i 275.6 | i 206.2 | ||||||||||||
Comprehensive
(income) loss attributable to non-controlling interest | ( i 2.2 | ) | ( i 1.1 | ) | ( i 4.2 | ) | ( i 4.2 | ) | ||||||||
Comprehensive
income attributable to Amcor plc | $ | i 256.5 | $ | i 96.9 | $ | i 271.4 | $ | i 202.0 | ||||||||
(a)
Tax (expense) benefit related to cash flow hedges | $ | ( i 0.8 | ) | $ | i 0.9 | $ | ( i 0.8 | ) | $ | i 1.2 | ||||||
(b)
Tax (expense) benefit related to foreign currency translation adjustments | $ | i 1.7 | $ | i 2.6 | $ | ( i 0.4 | ) | $ | ( i 2.2 | ) | ||||||
(c)
Tax (expense) benefit related to net investment hedge of foreign operations | $ | ( i 0.1 | ) | $ | ( i 6.1 | ) | $ | i 0.8 | $ | i 1.4 | ||||||
(d)
Tax (expense) benefit related to pension adjustments | $ | ( i 0.2 | ) | $ | ( i 6.2 | ) | $ | ( i 0.4 | ) | $ | ( i 6.3 | ) |
(in
millions) | ||||||||
Assets | ||||||||
Current assets: | ||||||||
Cash
and cash equivalents | $ | i 673.8 | $ | i 601.6 | ||||
Trade
receivables, net | i 1,669.1 | i 1,864.3 | ||||||
Inventories,
net | i 1,891.8 | i 1,953.8 | ||||||
Prepaid
expenses and other current assets | i 452.9 | i 374.3 | ||||||
Assets
held for sale | i — | i 416.1 | ||||||
Total
current assets | i 4,687.6 | i 5,210.1 | ||||||
Non-current
assets: | ||||||||
Investments in affiliated companies | i 96.8 | i 98.9 | ||||||
Property,
plant and equipment, net | i 3,757.5 | i 3,975.0 | ||||||
Operating
lease assets | i 553.3 | i — | ||||||
Deferred
tax assets | i 159.4 | i 190.9 | ||||||
Other
intangible assets, net | i 2,094.1 | i 2,306.8 | ||||||
Goodwill | i 5,246.3 | i 5,156.0 | ||||||
Employee
benefit assets | i 40.6 | i 40.2 | ||||||
Other
non-current assets | i 197.0 | i 187.1 | ||||||
Total
non-current assets | i 12,145.0 | i 11,954.9 | ||||||
Total
assets | $ | i 16,832.6 | $ | i 17,165.0 | ||||
Liabilities | ||||||||
Current
liabilities: | ||||||||
Current portion of long-term debt | $ | i 4.2 | $ | i 5.4 | ||||
Short-term
debt | i 353.0 | i 788.8 | ||||||
Trade
payables | i 2,075.8 | i 2,303.4 | ||||||
Accrued
employee costs | i 314.4 | i 378.4 | ||||||
Other
current liabilities | i 1,020.0 | i 1,044.9 | ||||||
Liabilities
held for sale | i — | i 20.9 | ||||||
Total
current liabilities | i 3,767.4 | i 4,541.8 | ||||||
Non-current
liabilities: | ||||||||
Long-term debt, less current portion | i 5,853.5 | i 5,309.0 | ||||||
Operating
lease liabilities | i 491.3 | i — | ||||||
Deferred
tax liabilities | i 726.5 | i 1,011.7 | ||||||
Employee
benefit obligations | i 371.0 | i 386.8 | ||||||
Other
non-current liabilities | i 220.0 | i 241.0 | ||||||
Total
non-current liabilities | i 7,662.3 | i 6,948.5 | ||||||
Total
liabilities | i 11,429.7 | i 11,490.3 | ||||||
Commitments
and contingencies (See Note 16) | i | i | ||||||
Shareholders'
Equity | ||||||||
Amcor plc shareholders’ equity: | ||||||||
Ordinary shares ($0.01 par value) | ||||||||
Authorized
(9,000.0 shares) | ||||||||
Issued (1,604.0 and 1,625.9 shares, respectively) | i 16.1 | i 16.3 | ||||||
Additional
paid-in capital | i 5,783.2 | i 6,007.5 | ||||||
Retained
earnings | i 254.4 | i 323.7 | ||||||
Accumulated
other comprehensive income (loss) | ( i 702.6 | ) | ( i 722.4 | ) | ||||
Treasury
shares (1.1 and 1.4 shares, respectively) | ( i 11.4 | ) | ( i 16.1 | ) | ||||
Total
Amcor plc shareholders' equity | i 5,339.7 | i 5,609.0 | ||||||
Non-controlling
interest | i 63.2 | i 65.7 | ||||||
Total
shareholders' equity | i 5,402.9 | i 5,674.7 | ||||||
Total
liabilities and shareholders' equity | $ | i 16,832.6 | $ | i 17,165.0 |
Six
Months Ended December 31, | ||||||||
($ in millions) | 2019 | 2018 | ||||||
Cash flows from operating activities: | ||||||||
Net
income | $ | i 255.8 | $ | i 242.1 | ||||
Adjustments
to reconcile net income to net cash provided by operating activities: | ||||||||
Depreciation, amortization and impairment | i 331.8 | i 187.0 | ||||||
Net
periodic benefit cost | i 3.2 | i 5.3 | ||||||
Amortization
of debt discount and deferred financing costs | i 2.9 | i 2.6 | ||||||
Amortization
of deferred gain on sale and leasebacks | i — | ( i 3.1 | ) | |||||
Net
gain on disposal of property, plant and equipment | ( i 0.5 | ) | ( i 9.5 | ) | ||||
Equity
in (income) loss of affiliated companies | ( i 4.5 | ) | i 6.9 | |||||
Net
foreign exchange (gain) loss | i 15.0 | ( i 5.4 | ) | |||||
Share-based
compensation | i 13.1 | i 8.3 | ||||||
Other,
net | i 0.7 | ( i 1.0 | ) | |||||
Loss
on transition to hyperinflationary accounting for Argentine subsidiaries | i 27.0 | i 19.0 | ||||||
Deferred
income taxes, net | ( i 116.9 | ) | i 1.1 | |||||
Dividends
received from affiliated companies | i 6.8 | i 4.7 | ||||||
Changes
in operating assets and liabilities, excluding effect of acquisitions, divestitures, and currency | ( i 192.4 | ) | ( i 223.3 | ) | ||||
Net
cash provided by operating activities | i 342.0 | i 234.7 | ||||||
Cash
flows from investing activities: | ||||||||
(Issuance) of loans to affiliated companies | i 0.6 | ( i 0.6 | ) | |||||
Investments
in affiliated companies | i — | ( i 0.8 | ) | |||||
Purchase
of property, plant and equipment and other intangible assets | ( i 206.6 | ) | ( i 172.0 | ) | ||||
Proceeds
from divestiture | i 397.1 | i 0.2 | ||||||
Proceeds
from sales of property, plant and equipment and other intangible assets | i 2.9 | i 60.3 | ||||||
Net
cash (used in) provided by investing activities | i 194.0 | ( i 112.9 | ) | |||||
Cash
flows from financing activities: | ||||||||
Proceeds from issuance of shares | i 0.9 | i 12.0 | ||||||
Settlement
of forward contracts | i — | ( i 28.5 | ) | |||||
Purchase
of treasury shares | ( i 11.3 | ) | ( i 21.2 | ) | ||||
Proceeds
from issuance of treasury shares under dividend reinvestment plan | i — | i 13.0 | ||||||
Proceeds
from (purchase of) non-controlling interest | i 4.7 | i 3.5 | ||||||
Proceeds
from issuance of long-term debt | i 44.9 | i 1,294.9 | ||||||
Repayment
of long-term debt | ( i 2,112.5 | ) | ( i 1,192.8 | ) | ||||
Net
borrowing/(repayment) of commercial paper | i 2,662.5 | ( i 17.2 | ) | |||||
Net
borrowing/(repayment) of short-term debt | ( i 417.5 | ) | ( i 2.3 | ) | ||||
Repayment
of lease liabilities | ( i 0.6 | ) | ( i 0.7 | ) | ||||
Share
buyback/cancellations | ( i 222.6 | ) | i — | |||||
Dividends
paid | ( i 390.6 | ) | ( i 290.6 | ) | ||||
Net
cash used in financing activities | ( i 442.1 | ) | ( i 229.9 | ) | ||||
Effect
of exchange rates on cash and cash equivalents | ( i 21.7 | ) | ( i 22.0 | ) | ||||
Net
increase (decrease) in cash and cash equivalents | i 72.2 | ( i 130.1 | ) | |||||
Cash
and cash equivalents balance at beginning of year | i 601.6 | i 620.8 | ||||||
Cash
and cash equivalents balance at end of period | $ | i 673.8 | $ | i 490.7 | ||||
Interest
paid, net of amounts capitalized | $ | i 91.9 | $ | i 97.9 | ||||
Income
taxes paid | $ | i 184.2 | $ | i 62.3 |
($
in millions, except per share data) | Ordinary Shares | Additional Paid-In Capital | Retained Earnings | Accumulated Other Comprehensive Income (Loss) | Treasury Shares | Non-controlling
Interest | Total | |||||||||||||||||||||
Balance as of September 30, 2018 | $ | i — | $ | i 796.6 | $ | i 381.8 | $ | ( i 701.8 | ) | $ | ( i 30.3 | ) | $ | i 69.8 | $ | i 516.1 | ||||||||||||
Net
income (loss) | i 138.6 | i 2.0 | i 140.6 | |||||||||||||||||||||||||
Other
comprehensive income (loss) | ( i 41.7 | ) | ( i 0.9 | ) | ( i 42.6 | ) | ||||||||||||||||||||||
Dividends
declared | ( i 10.5 | ) | ( i 10.5 | ) | ||||||||||||||||||||||||
Options
exercised and shares vested | ( i 2.3 | ) | i 5.1 | i 2.8 | ||||||||||||||||||||||||
Issuance
of treasury shares under dividend reinvestment plan | i 13.0 | i 13.0 | ||||||||||||||||||||||||||
Share-based
compensation expense | i 3.8 | i 3.8 | ||||||||||||||||||||||||||
Change
in non-controlling interest | i 3.6 | i 3.6 | ||||||||||||||||||||||||||
Balance
as of December 31, 2018 | $ | i — | $ | i 798.1 | $ | i 520.4 | $ | ( i 743.5 | ) | $ | ( i 12.2 | ) | $ | i 64.0 | $ | i 626.8 | ||||||||||||
Balance
as of June 30, 2018 | $ | i — | $ | i 784.4 | $ | i 561.4 | $ | ( i 708.5 | ) | $ | ( i 10.7 | ) | $ | i 68.8 | $ | i 695.4 | ||||||||||||
Net
income (loss) | i 237.0 | i 5.1 | i 242.1 | |||||||||||||||||||||||||
Other
comprehensive income (loss) | ( i 35.0 | ) | ( i 0.9 | ) | ( i 35.9 | ) | ||||||||||||||||||||||
Dividends
declared ($0.240 per share) | ( i 278.0 | ) | ( i 12.6 | ) | ( i 290.6 | ) | ||||||||||||||||||||||
Options
exercised and shares vested | ( i 19.6 | ) | i 31.8 | i 12.2 | ||||||||||||||||||||||||
Settlement
of forward contracts to purchase own equity to meet share based incentive plans, net of tax | i 25.1 | ( i 25.1 | ) | i — | ||||||||||||||||||||||||
Purchase
of treasury shares | ( i 21.2 | ) | ( i 21.2 | ) | ||||||||||||||||||||||||
Issuance
of treasury shares under dividend reinvestment plan | i 13.0 | i 13.0 | ||||||||||||||||||||||||||
Share-based
compensation expense | i 8.3 | i 8.3 | ||||||||||||||||||||||||||
Change
in non-controlling interest | ( i 0.1 | ) | i 3.6 | i 3.5 | ||||||||||||||||||||||||
Balance
as of December 31, 2018 | $ | i — | $ | i 798.1 | $ | i 520.4 | $ | ( i 743.5 | ) | $ | ( i 12.2 | ) | $ | i 64.0 | $ | i 626.8 | ||||||||||||
Balance
as of September 30, 2019 | $ | i 16.2 | $ | i 5,940.7 | $ | i 252.3 | $ | ( i 773.5 | ) | $ | ( i 11.5 | ) | $ | i 67.2 | $ | i 5,491.4 | ||||||||||||
Net
income (loss) | i 185.6 | i 2.2 | i 187.8 | |||||||||||||||||||||||||
Other
comprehensive income (loss) | i 70.9 | i 70.9 | ||||||||||||||||||||||||||
Share
buyback/cancellations | ( i 0.1 | ) | ( i 164.2 | ) | ( i 164.3 | ) | ||||||||||||||||||||||
Dividends
declared ($0.115 per share) | ( i 183.5 | ) | ( i 10.9 | ) | ( i 194.4 | ) | ||||||||||||||||||||||
Options
exercised and shares vested | ( i 0.4 | ) | i 1.2 | i 0.8 | ||||||||||||||||||||||||
Purchase
of treasury shares | ( i 1.1 | ) | ( i 1.1 | ) | ||||||||||||||||||||||||
Share-based
compensation expense | i 7.1 | i 7.1 | ||||||||||||||||||||||||||
Change
in non-controlling interest | i 4.7 | i 4.7 | ||||||||||||||||||||||||||
Balance
as of December 31, 2019 | $ | i 16.1 | $ | i 5,783.2 | $ | i 254.4 | $ | ( i 702.6 | ) | $ | ( i 11.4 | ) | $ | i 63.2 | $ | i 5,402.9 | ||||||||||||
Balance
as of June 30, 2019 | $ | i 16.3 | $ | i 6,007.5 | $ | i 323.7 | $ | ( i 722.4 | ) | $ | ( i 16.1 | ) | $ | i 65.7 | $ | i 5,674.7 | ||||||||||||
Net
income (loss) | i 251.6 | i 4.2 | i 255.8 | |||||||||||||||||||||||||
Other
comprehensive income (loss) | i 19.8 | i 19.8 | ||||||||||||||||||||||||||
Share
buyback/cancellations | ( i 0.2 | ) | ( i 222.4 | ) | ( i 222.6 | ) | ||||||||||||||||||||||
Dividends
declared ($0.235 per share) | ( i 379.1 | ) | ( i 11.4 | ) | ( i 390.5 | ) | ||||||||||||||||||||||
Options
exercised and shares vested | ( i 15.0 | ) | i 16.0 | i 1.0 | ||||||||||||||||||||||||
Purchase
of treasury shares | ( i 11.3 | ) | ( i 11.3 | ) | ||||||||||||||||||||||||
Share-based
compensation expense | i 13.1 | i 13.1 | ||||||||||||||||||||||||||
Change
in non-controlling interest | i 4.7 | i 4.7 | ||||||||||||||||||||||||||
Cumulative
adjustment related to the adoption of ASC 842 (1) | i 58.2 | i 58.2 | ||||||||||||||||||||||||||
Balance
as of December 31, 2019 | $ | i 16.1 | $ | i 5,783.2 | $ | i 254.4 | $ | ( i 702.6 | ) | $ | ( i 11.4 | ) | $ | i 63.2 | $ | i 5,402.9 |
(1) | Refer
to Note 2, "New Accounting Guidance" for more information. |
($ in millions) | Adjustments
due to Adoption | At July 1, 2019 | |||||||
Operating lease assets | i — | i 569.8 | i 569.8 | ||||||
Other
current liabilities | i 1,044.9 | i 54.3 | i 1,099.2 | ||||||
Operating
lease liabilities | i — | i 506.8 | i 506.8 | ||||||
Deferred
tax liabilities | i 1,011.7 | i 18.7 | i 1,030.4 | ||||||
Other
non-current liabilities | i 241.0 | ( i 68.2 | ) | i 172.8 | |||||
Retained
earnings | i 323.7 | i 58.2 | i 381.9 |
Bemis shares outstanding at June 11, 2019 (in millions) | i 91.7 | |||
Share
exchange ratio | i 5.1 | |||
Price per share (based on Amcor’s closing share price on June 11, 2019) | $ | i 11.18 | ||
Total
equity consideration ($ in millions) | $ | i 5,229.6 |
($ in millions) | ||||
Cash and cash equivalents | $ | i 3.3 | ||
Trade
receivables | i 436.0 | |||
Inventories | i 679.6 | |||
Prepaid
expenses and other current assets | i 83.3 | |||
Assets held for sale | i 464.2 | |||
Property,
plant and equipment | i 1,227.8 | |||
Deferred tax assets | i 35.5 | |||
Other
intangible assets | i 1,931.4 | |||
Other non-current assets | i 34.5 | |||
Total
identifiable assets acquired | i 4,895.6 | |||
Current portion of long-term debt | i 1.7 | |||
Short-term
debt | i 8.6 | |||
Trade payables | i 287.7 | |||
Accrued
employee costs | i 161.1 | |||
Other current liabilities | i 283.0 | |||
Liabilities
held for sale | i 21.9 | |||
Long-term debt, less current portion | i 1,365.3 | |||
Deferred
tax liabilities | i 628.3 | |||
Employee benefit obligation | i 62.6 | |||
Other
non-current liabilities | i 83.3 | |||
Total liabilities assumed | i 2,903.5 | |||
Net
identifiable assets acquired | i 1,992.1 | |||
Goodwill | i 3,237.5 | |||
Net
assets acquired | $ | i 5,229.6 |
Fair Value | Weighted-average Estimated Useful Life | |||||
($ in millions) | (Years) | |||||
Customer
relationships | $ | i 1,650.0 | i 15 | |||
Technology | i 110.0 | i 7 | ||||
Other | i 171.4 | i 7 | ||||
Total
other intangible assets | $ | i 1,931.4 |
Three
Months Ended December 31, | Six Months Ended December 31, | |||||||
($ in millions) | 2019 | |||||||
Net sales | $ | i — | $ | i 15.8 | ||||
Income
(loss) from discontinued operations | i — | ( i 7.1 | ) | |||||
Tax
expense on discontinued operations | i — | i 0.6 | ||||||
Income
(loss) from discontinued operations, net of tax | $ | i — | $ | ( i 7.7 | ) |
($ in millions) | 2018 Rigid Packaging Restructuring Plan | 2019
Bemis Integration Plan | Other Restructuring Plans | Total Restructuring and Related Expenses (1) | ||||||||||||
Fiscal year 2019 net charges to earnings | i 64.1 | i 47.9 | i 18.8 | i 130.8 | ||||||||||||
Fiscal
year 2020 first quarter net charges to earnings | i 3.4 | i 13.9 | i 0.3 | i 17.6 | ||||||||||||
Fiscal
year 2020 second quarter net charges to earnings | i 2.6 | i 20.8 | i 0.7 | i 24.1 | ||||||||||||
Expense
incurred to date | $ | i 70.1 | $ | i 82.6 | $ | i 19.8 | $ | i 172.5 |
(1) | Total
restructuring and related expenses includes $ i 1.8 million, $ i 3.6
million and $ i 1.5 million for the fiscal year 2019, fiscal year 2020 first quarter and fiscal year 2020 second quarter, respectively, of restructuring related costs from the 2019 Bemis Integration Plan. |
($ in millions) | Employee Costs | Fixed Asset Related Costs | Other
Costs | Total Restructuring Costs | |||||||||||
Liability balance at June 30, 2019 | i 72.5 | i 6.7 | i 8.4 | i 87.6 | |||||||||||
Net
charges to earnings | i 23.6 | i 5.4 | i 7.7 | i 36.7 | |||||||||||
Cash
paid | ( i 27.9 | ) | ( i 0.2 | ) | ( i 8.8 | ) | ( i 36.9 | ) | |||||||
Non-cash
and other | i — | ( i 5.2 | ) | i — | ( i 5.2 | ) | |||||||||
Foreign
currency translation | ( i 0.4 | ) | ( i 0.1 | ) | ( i 0.1 | ) | ( i 0.6 | ) | |||||||
Liability
balance at December 31, 2019 | $ | i 67.8 | $ | i 6.6 | $ | i 7.2 | i 81.6 |
($ in millions) | ||||||||
Raw materials and supplies | $ | i 850.4 | $ | i 864.6 | ||||
Work
in process and finished goods | i 1,137.6 | i 1,180.9 | ||||||
Less:
inventory reserves | ( i 96.2 | ) | ( i 91.7 | ) | ||||
Total
inventories, net | $ | i 1,891.8 | $ | i 1,953.8 |
($ in millions) | Flexibles Segment | Rigid Packaging Segment | Total | |||||||||
Balance
as of June 30, 2019 | $ | i 4,180.8 | $ | i 975.2 | $ | i 5,156.0 | ||||||
Acquisition
and acquisition adjustments | i 99.8 | i — | i 99.8 | |||||||||
Currency
translation | ( i 9.6 | ) | i 0.1 | ( i 9.5 | ) | |||||||
Balance
as of December 31, 2019 | $ | i 4,271.0 | $ | i 975.3 | $ | i 5,246.3 |
($ in millions) | Gross Carrying Amount | Accumulated
Amortization and Impairment | Net Carrying Amount | |||||||||
Customer relationships | $ | i 1,970.0 | $ | ( i 207.6 | ) | $ | i 1,762.4 | |||||
Computer
software | i 220.0 | ( i 129.1 | ) | i 90.9 | ||||||||
Other
(1) | i 332.2 | ( i 91.4 | ) | i 240.8 | ||||||||
Reported
balance | $ | i 2,522.2 | $ | ( i 428.1 | ) | $ | i 2,094.1 |
($ in millions) | Gross Carrying Amount | Accumulated Amortization and Impairment | Net Carrying Amount | |||||||||
Customer relationships | $ | i 2,053.7 | $ | ( i 144.0 | ) | $ | i 1,909.7 | |||||
Computer
software | i 221.3 | ( i 127.0 | ) | i 94.3 | ||||||||
Other
(1) | i 350.6 | ( i 47.8 | ) | i 302.8 | ||||||||
Reported
balance | $ | i 2,625.6 | $ | ( i 318.8 | ) | $ | i 2,306.8 |
(1) | Other
includes $ i 14.8 million and $ i 14.2
million for December 31, 2019 and June 30, 2019, respectively, of acquired intellectual property assets not yet being amortized as the related R&D projects have not yet been completed. |
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) | $ | i 2,537.0 | $ | i 2,633.2 | $ | i 2,955.6 | $ | i 3,041.3 |
($ in millions) | Level
1 | Level 2 | Level 3 | Total | ||||||||||||
Assets | ||||||||||||||||
Commodity
contracts | $ | i — | $ | i 0.2 | $ | i — | $ | i 0.2 | ||||||||
Forward
exchange contracts | i — | i 5.0 | i — | i 5.0 | ||||||||||||
Interest
rate swaps | i — | i 27.1 | i — | i 27.1 | ||||||||||||
Cross
currency interest rate swaps | i — | i 0.1 | i — | i 0.1 | ||||||||||||
Total
assets measured at fair value | $ | i — | $ | i 32.4 | $ | i — | $ | i 32.4 | ||||||||
Liabilities | ||||||||||||||||
Contingent
purchase consideration liabilities | $ | i — | $ | i — | $ | i 14.2 | $ | i 14.2 | ||||||||
Commodity
contracts | i — | i 1.9 | i — | i 1.9 | ||||||||||||
Forward
exchange contracts | i — | i 13.7 | i — | i 13.7 | ||||||||||||
Interest
rate swaps | i — | i — | i — | i — | ||||||||||||
Total
liabilities measured at fair value | $ | i — | $ | i 15.6 | $ | i 14.2 | $ | i 29.8 |
($ in millions) | Level 1 | Level 2 | Level 3 | Total | ||||||||||||
Assets | ||||||||||||||||
Commodity
contracts | $ | i — | $ | i — | $ | i — | $ | i — | ||||||||
Forward
exchange contracts | i — | i 5.5 | i — | i 5.5 | ||||||||||||
Interest
rate swaps | i — | i 32.8 | i — | i 32.8 | ||||||||||||
Total
assets measured at fair value | $ | i — | $ | i 38.3 | $ | i — | $ | i 38.3 | ||||||||
Liabilities | ||||||||||||||||
Contingent
purchase consideration liabilities | $ | i — | $ | i — | $ | i 13.6 | $ | i 13.6 | ||||||||
Commodity
contracts | i — | i 4.6 | i — | i 4.6 | ||||||||||||
Forward
exchange contracts | i — | i 9.3 | i — | i 9.3 | ||||||||||||
Interest
rate swaps | i — | i — | i — | i — | ||||||||||||
Total
liabilities measured at fair value | $ | i — | $ | i 13.9 | $ | i 13.6 | $ | i 27.5 |
Commodity | Volume | Volume | ||
Aluminum | i 31,857
tons | i 29,342 tons |
($ in millions) | Balance Sheet Location | |||||||||
Assets | ||||||||||
Derivatives in cash flow hedging relationships: | ||||||||||
Commodity
contracts | Other current assets | $ | i 0.2 | $ | i — | |||||
Forward
exchange contracts | Other current assets | $ | i 3.0 | $ | i 2.4 | |||||
Derivatives
not designated as hedging instruments: | ||||||||||
Forward exchange contracts | Other current assets | i 1.9 | i 2.7 | |||||||
Cross
currency interest rate swaps | Other current assets | i 0.1 | i — | |||||||
Total
current derivative contracts | i 5.2 | i 5.1 | ||||||||
Derivatives
in fair value hedging relationships: | ||||||||||
Interest rate swaps | Other non-current assets | i 27.1 | i 32.8 | |||||||
Derivatives
not designated as hedging instruments: | ||||||||||
Forward exchange contracts | Other non-current assets | i 0.1 | i 0.4 | |||||||
Total
non-current derivative contracts | i 27.2 | i 33.2 | ||||||||
Total
derivative asset contracts | $ | i 32.4 | $ | i 38.3 | ||||||
Liabilities | ||||||||||
Derivatives
in cash flow hedging relationships: | ||||||||||
Commodity contracts | Other current liabilities | $ | i 1.9 | $ | i 4.6 | |||||
Forward
exchange contracts | Other current liabilities | i 2.6 | i 1.5 | |||||||
Derivatives
not designated as hedging instruments: | ||||||||||
Forward exchange contracts | Other current liabilities | i 11.0 | i 7.1 | |||||||
Total
current derivative contracts | i 15.5 | i 13.2 | ||||||||
Derivatives
in cash flow hedging relationships: | ||||||||||
Forward exchange contracts | Other non-current liabilities | i 0.1 | i 0.3 | |||||||
Derivatives
not designated as hedging instruments: | ||||||||||
Forward exchange contracts | Other non-current liabilities | i — | i 0.4 | |||||||
Total
non-current derivative contracts | i 0.1 | i 0.7 | ||||||||
Total
derivative liability contracts | $ | i 15.6 | $ | i 13.9 |
Location of Gain (Loss) Reclassified from AOCI into Income (Effective Portion) | Gain
(Loss) Reclassified from AOCI into Income (Effective Portion) | |||||||||||||||||
Three Months Ended December 31, | Six Months Ended December 31, | |||||||||||||||||
($ in millions) | 2019 | 2018 | 2019 | 2018 | ||||||||||||||
Derivatives
in cash flow hedging relationships | ||||||||||||||||||
Commodity contracts | Cost
of sales | $ | ( i 1.6 | ) | $ | ( i 0.3 | ) | $ | ( i 3.1 | ) | $ | i 0.2 | ||||||
Forward
exchange contracts | Net sales | ( i 0.4 | ) | ( i 0.4 | ) | ( i 0.8 | ) | ( i 0.3 | ) | |||||||||
Forward
exchange contracts | Cost of sales | ( i 0.1 | ) | ( i 0.5 | ) | i — | ( i 0.3 | ) | ||||||||||
Total | $ | ( i 2.1 | ) | $ | ( i 1.2 | ) | $ | ( i 3.9 | ) | $ | ( i 0.4 | ) |
Location
of Gain (Loss) Recognized in the Unaudited Condensed Consolidated Statement of Income | Gain (Loss) Recognized in Income for Derivatives Not Designated as Hedging Instruments | |||||||||||||||||
Three Months Ended December 31, | Six Months Ended December 31, | |||||||||||||||||
($ in millions) | 2019 | 2018 | 2019 | 2018 | ||||||||||||||
Derivatives
not designated as hedging instruments | ||||||||||||||||||
Forward exchange contracts | Other
income, net | $ | i 4.8 | $ | i 1.1 | $ | ( i 0.3 | ) | $ | i 0.5 | ||||||||
Cross
currency interest rate swaps | Other income, net | ( i 2.3 | ) | i — | i 0.1 | ( i 0.1 | ) | |||||||||||
Total | $ | i 2.5 | $ | i 1.1 | ( i 0.2 | ) | i 0.4 |
Location
of Gain (Loss) Recognized in the Unaudited Condensed Consolidated Statement of Income | Gain (Loss) Recognized in Income for Derivatives in Fair Value Hedging Relationships | |||||||||||||||||
Three Months Ended December 31, | Six Months Ended December 31, | |||||||||||||||||
($ in millions) | 2019 | 2018 | 2019 | 2018 | ||||||||||||||
Derivatives
in fair value hedging relationships | ||||||||||||||||||
Interest rate swaps | Interest expense | $ | ( i 5.7 | ) | $ | i 3.9 | $ | ( i 5.8 | ) | $ | i 0.2 | |||||||
Total | $ | ( i 5.7 | ) | $ | i 3.9 | $ | ( i 5.8 | ) | $ | i 0.2 |
(in millions) | Three Months Ended December 31, | Six
Months Ended December 31, | ||||||
Statement of Income Location | 2019 | |||||||
Operating leases | ||||||||
Cost of products sold | $ | i 22.8 | $ | i 45.5 | ||||
Selling,
general and administrative expenses | i 5.7 | i 11.4 | ||||||
Total
lease cost (1) | $ | i 28.5 | $ | i 56.9 |
(1) | Includes
short-term leases and variable lease costs, which are immaterial. |
(in millions) | Balance Sheet Location | |||||
Assets | ||||||
Operating
lease assets | Operating lease assets | $ | i 553.3 | |||
Finance lease assets (1) | Property,
plant and equipment, net | i 2.1 | ||||
Total lease assets | $ | i 555.4 | ||||
Liabilities | ||||||
Operating
leases: | ||||||
Current operating lease liabilities | Other current liabilities | $ | i 84.4 | |||
Non-current
operating lease liabilities | Operating lease liabilities | i 491.3 | ||||
Finance leases: | ||||||
Current
finance lease liabilities | Current portion of long-term debt | i 1.2 | ||||
Non-current finance lease liabilities | Long-term
debt, less current portion | i 2.8 | ||||
Total lease liabilities | $ | i 579.7 |
(1) | Finance
lease assets are recorded net of accumulated amortization of $ i 8.3 million at December 31, 2019. |
Six
Months Ended December 31, | ||||
(in millions) | 2019 | |||
Cash paid for amounts included in the measurement of lease liabilities: | ||||
Operating cash flows from operating leases | $ | i 54.4 | ||
Lease
assets obtained in exchange for new lease obligations: | ||||
Operating leases | $ | i 47.1 | ||
Finance
leases | $ | i 0.8 |
(in millions) | Operating Leases | Finance Leases | ||||||
Remainder of fiscal 2020 | $ | i 52.9 | $ | i 0.9 | ||||
Fiscal
2021 | i 96.7 | i 1.1 | ||||||
Fiscal
2022 | i 84.8 | i 1.0 | ||||||
Fiscal
2023 | i 72.8 | i 0.8 | ||||||
Fiscal
2024 | i 62.4 | i 0.8 | ||||||
Thereafter | i 330.7 | i 0.4 | ||||||
Total
lease payments | i 700.3 | i 5.0 | ||||||
Less:
imputed interest | i 124.6 | i 1.0 | ||||||
Present
value of lease liabilities | $ | i 575.7 | $ | i 4.0 |
(in millions) | Operating Leases | |||
Fiscal 2020 | $ | i 97.6 | ||
Fiscal
2021 | i 90.4 | |||
Fiscal 2022 | i 77.7 | |||
Fiscal
2023 | i 67.3 | |||
Fiscal 2024 | i 55.9 | |||
Thereafter | i 301.8 | |||
Total
minimum obligations | $ | i 690.7 |
Weighted average remaining lease term (in years): | |||
Operating leases | i 10.0 | ||
Finance
leases | i 4.0 | ||
Weighted average discount rate: | |||
Operating
Leases | i 3.9 | % | |
Finance leases | i 10.3 | % |
Three Months Ended December 31, | Six Months Ended December 31, | |||||||||||||||
($ in millions) | 2019 | 2018 | 2019 | 2018 | ||||||||||||
Service
cost | $ | i 6.2 | $ | i 3.9 | $ | i 12.4 | $ | i 7.8 | ||||||||
Interest
cost | i 12.3 | i 6.7 | i 24.6 | i 13.4 | ||||||||||||
Expected
return on plan assets | ( i 18.0 | ) | ( i 8.2 | ) | ( i 36.0 | ) | ( i 16.6 | ) | ||||||||
Amortization
of net loss | i 1.5 | i 1.0 | i 3.0 | i 2.0 | ||||||||||||
Amortization
of prior service credit | ( i 0.4 | ) | ( i 0.5 | ) | ( i 0.8 | ) | ( i 1.0 | ) | ||||||||
Curtailment
credit | i — | ( i 0.3 | ) | i — | ( i 0.3 | ) | ||||||||||
Net
periodic benefit cost | $ | i 1.6 | $ | i 2.6 | $ | i 3.2 | $ | i 5.3 |
Ordinary
Shares | Treasury Shares | |||||||||||||
(shares and $ in millions) | Number of Shares | Amount | Number of Shares | Amount | ||||||||||
Balance as of June
30, 2018 | i 1,158.1 | $ | i — | i 0.9 | $ | ( i 10.7 | ) | |||||||
Options
exercised and shares vested | ( i 3.1 | ) | i 31.8 | |||||||||||
Settlement
of forward contracts to purchase own equity to meet share base incentive plans, net of tax | i 2.5 | ( i 25.1 | ) | |||||||||||
Purchase
of treasury shares | i 2.1 | ( i 21.2 | ) | |||||||||||
Issuance
of treasury shares under dividend reinvestment plan | ( i 1.3 | ) | i 13.0 | |||||||||||
Balance
as of December 31, 2018 | i 1,158.1 | $ | i — | i 1.1 | $ | ( i 12.2 | ) | |||||||
Balance
as of June 30, 2019 | i 1,625.9 | $ | i 16.3 | i 1.4 | $ | ( i 16.1 | ) | |||||||
Share
buy-back/cancellations | ( i 21.9 | ) | ( i 0.2 | ) | ||||||||||
Options
exercised and shares vested | ( i 1.4 | ) | i 16.0 | |||||||||||
Purchase
of treasury shares | i 1.1 | ( i 11.3 | ) | |||||||||||
Balance
as of December 31, 2019 | i 1,604.0 | $ | i 16.1 | i 1.1 | $ | ( i 11.4 | ) |
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 | $ | ( i 669.3 | ) | $ | i — | $ | ( i 30.6 | ) | $ | ( i 8.6 | ) | $ | ( i 708.5 | ) | ||||||
Other
comprehensive income (loss) before reclassifications | i 13.6 | ( i 14.1 | ) | ( i 30.7 | ) | ( i 4.9 | ) | ( i 36.1 | ) | |||||||||||
Amounts
reclassified from accumulated other comprehensive income (loss) | i — | i — | i 0.7 | i 0.4 | i 1.1 | |||||||||||||||
Net
current period other comprehensive income (loss) | i 13.6 | ( i 14.1 | ) | ( i 30.0 | ) | ( i 4.5 | ) | ( i 35.0 | ) | |||||||||||
Balance
as of December 31, 2018 | $ | ( i 655.7 | ) | $ | ( i 14.1 | ) | $ | ( i 60.6 | ) | $ | ( i 13.1 | ) | $ | ( i 743.5 | ) | |||||
Balance
as of June 30, 2019 | $ | ( i 609.4 | ) | $ | ( i 11.2 | ) | $ | ( i 89.6 | ) | $ | ( i 12.2 | ) | $ | ( i 722.4 | ) | |||||
Other
comprehensive income (loss) before reclassifications | i 8.4 | ( i 2.0 | ) | ( i 0.4 | ) | ( i 0.1 | ) | i 5.9 | ||||||||||||
Amounts
reclassified from accumulated other comprehensive income (loss) | i 8.8 | i — | i 1.9 | i 3.2 | i 13.9 | |||||||||||||||
Net
current period other comprehensive income (loss) | i 17.2 | ( i 2.0 | ) | i 1.5 | i 3.1 | i 19.8 | ||||||||||||||
Balance
as of December 31, 2019 | $ | ( i 592.2 | ) | $ | ( i 13.2 | ) | $ | ( i 88.1 | ) | $ | ( i 9.1 | ) | $ | ( i 702.6 | ) |
Three Months Ended December 31, | Six Months Ended December 31, | |||||||||||||||
($
in millions) | 2019 | 2018 | 2019 | 2018 | ||||||||||||
Amortization of pension: | ||||||||||||||||
Amortization
of prior service credit | $ | ( i 0.4 | ) | $ | ( i 0.5 | ) | $ | ( i 0.8 | ) | $ | ( i 1.0 | ) | ||||
Amortization
of actuarial loss | i 1.5 | i 1.0 | i 3.0 | i 2.0 | ||||||||||||
Effect
of pension settlement/curtailment | i — | ( i 0.3 | ) | i — | ( i 0.3 | ) | ||||||||||
Total
before tax effect | i 1.1 | i 0.2 | i 2.2 | i 0.7 | ||||||||||||
Tax
benefit on amounts reclassified into earnings | ( i 0.1 | ) | i — | ( i 0.3 | ) | i — | ||||||||||
Total
net of tax | $ | i 1.0 | $ | i 0.2 | $ | i 1.9 | $ | i 0.7 | ||||||||
(Gains)
losses on cash flow hedges: | ||||||||||||||||
Commodity contracts | $ | i 1.6 | $ | i 0.3 | $ | i 3.1 | $ | ( i 0.2 | ) | |||||||
Forward
exchange contracts | i 0.5 | i 0.9 | i 0.8 | i 0.6 | ||||||||||||
Total
before tax effect | i 2.1 | i 1.2 | i 3.9 | i 0.4 | ||||||||||||
Tax
benefit on amounts reclassified into earnings | ( i 0.3 | ) | i — | ( i 0.7 | ) | i — | ||||||||||
Total
net of tax | $ | i 1.8 | $ | i 1.2 | $ | i 3.2 | $ | i 0.4 | ||||||||
(Gains)
losses on foreign currency translation: | ||||||||||||||||
Foreign currency translation adjustment (1) | $ | i — | $ | i — | $ | i 8.8 | $ | i — | ||||||||
Total
before tax effect | i — | i — | i 8.8 | i — | ||||||||||||
Tax
benefit on amounts reclassified into earnings | i — | i — | i — | i — | ||||||||||||
Total
net of tax | $ | i — | $ | i — | $ | i 8.8 | $ | i — |
(1) | During
the first fiscal quarter of 2020, the Company recorded a loss on the sale of the EC Remedy of $ i 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. |
Three Months Ended December 31, | Six Months Ended December 31, | |||||||||||||||
($
in millions) | 2019 | 2018 | 2019 | 2018 | ||||||||||||
Sales including intersegment sales | ||||||||||||||||
Flexibles | $ | i 2,414.7 | $ | i 1,608.2 | $ | i 4,845.5 | $ | i 3,142.0 | ||||||||
Rigid
Packaging | i 629.2 | i 677.6 | i 1,339.8 | i 1,404.3 | ||||||||||||
Other | i — | i — | i — | i — | ||||||||||||
Total
sales including intersegment sales | i 3,043.9 | i 2,285.8 | i 6,185.3 | i 4,546.3 | ||||||||||||
Intersegment
sales | ||||||||||||||||
Flexibles | i 0.8 | i 0.4 | i 1.5 | i 0.7 | ||||||||||||
Rigid
Packaging | i — | i — | i — | i — | ||||||||||||
Other | i — | i — | i — | i — | ||||||||||||
Total
intersegment sales | i 0.8 | i 0.4 | i 1.5 | i 0.7 | ||||||||||||
Net
sales | $ | i 3,043.1 | $ | i 2,285.4 | $ | i 6,183.8 | $ | i 4,545.6 | ||||||||
Adjusted
EBIT from continuing operations | ||||||||||||||||
Flexibles | $ | i 329.4 | $ | i 211.4 | $ | i 619.9 | $ | i 368.9 | ||||||||
Rigid
Packaging | i 59.5 | i 80.2 | i 130.0 | i 148.5 | ||||||||||||
Other | ( i 24.9 | ) | ( i 9.6 | ) | ( i 50.9 | ) | ( i 24.0 | ) | ||||||||
Adjusted
EBIT from continuing operations | i 364.0 | i 282.0 | i 699.0 | i 493.4 | ||||||||||||
Less:
Material restructuring programs (1) | ( i 23.4 | ) | ( i 27.6 | ) | ( i 40.7 | ) | ( i 37.7 | ) | ||||||||
Less:
Impairments in equity method investments (2) | i — | ( i 11.4 | ) | i — | ( i 13.9 | ) | ||||||||||
Less:
Material acquisition costs and other (3) | ( i 17.7 | ) | ( i 29.8 | ) | ( i 101.2 | ) | ( i 35.1 | ) | ||||||||
Less:
Amortization of acquired intangible assets from business combinations (4) | ( i 40.9 | ) | ( i 4.7 | ) | ( i 109.2 | ) | ( i 9.5 | ) | ||||||||
Add/(Less):
Economic net investment hedging activities not qualifying for hedge accounting (5) | i — | i 4.2 | i — | i 1.5 | ||||||||||||
Less:
Impact of hyperinflation (6) | ( i 3.1 | ) | ( i 9.6 | ) | ( i 18.5 | ) | ( i 19.0 | ) | ||||||||
Add:
Net legal settlements (7) | i — | i 15.5 | i — | i 15.5 | ||||||||||||
EBIT
from continuing operations | i 278.9 | i 218.6 | i 429.4 | i 395.2 | ||||||||||||
Interest
income | i 6.3 | i 5.2 | i 13.0 | i 8.1 | ||||||||||||
Interest
expense | ( i 52.3 | ) | ( i 52.1 | ) | ( i 112.0 | ) | ( i 108.4 | ) | ||||||||
Equity
in (income) loss of affiliated companies, net of tax | ( i 2.2 | ) | i 8.6 | ( i 4.5 | ) | i 6.9 | ||||||||||
Income
from continuing operations before income taxes and equity in income (loss) of affiliated companies | $ | i 230.7 | $ | i 180.3 | $ | i 325.9 | $ | i 301.8 |
(1) | Material
restructuring programs includes the 2018 Rigid Packaging Restructuring Plan and the 2019 Bemis Integration Plan for the three and six months ended December 31, 2019. For the three and six months ended December 31, 2018, material restructuring plans include the 2018 Rigid Packaging Restructuring Plan. Refer to Note 5, "Restructuring Plans," 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 $ i 58.0 million amortization of
Bemis acquisition related inventory fair value step-up and $ i 43.2 million of Bemis transaction related costs and integration costs not qualifying as exit costs for the six months ended December 31, 2019. |
(4) | Amortization
of acquired intangible assets from business combinations includes amortization expenses related to all acquired intangible assets from acquisitions impacting the periods presented, including $ i 26.4 million of sales backlog amortization for the six months ended December 31, 2019 from the Bemis acquisition. |
(5) | Economic
net investment hedging activities not qualifying for hedge accounting includes the exchange rate movements on external loans not deemed to be effective net investment hedging instruments resulting from the our conversion to U.S. GAAP from Australian Accounting Standards ("AAS") recognized in other non-operating income (loss), net. |
(6) | Impact of hyperinflation includes the adverse impact of highly inflationary accounting for subsidiaries in Argentina where the functional currency was the Argentine Peso. |
(7) | Net
legal settlements includes the impact of significant legal settlements after associated costs. |
Three Months Ended December 31, | Six
Months Ended December 31, | |||||||||||||||
($ in millions) | 2019 | 2018 | 2019 | 2018 | ||||||||||||
North America | $ | i 1,361.9 | $ | i 710.6 | $ | i 2,854.8 | $ | i 1,480.6 | ||||||||
Latin
America | i 394.9 | i 296.0 | i 783.6 | i 559.3 | ||||||||||||
Europe | i 904.1 | i 933.0 | i 1,789.6 | i 1,818.2 | ||||||||||||
Asia
Pacific | i 382.2 | i 345.8 | i 755.8 | i 687.5 | ||||||||||||
Net
sales | $ | i 3,043.1 | $ | i 2,285.4 | $ | i 6,183.8 | $ | i 4,545.6 |
Three
Months Ended December 31, | Six Months Ended December 31, | |||||||||||||||
(in millions, except per share amounts) | 2019 | 2018 | 2019 | 2018 | ||||||||||||
Numerator | ||||||||||||||||
Net
income attributable to Amcor plc | $ | i 185.6 | $ | i 138.6 | $ | i 251.6 | $ | i 237.0 | ||||||||
Distributed
and undistributed earnings attributable to shares to be repurchased | i — | ( i 0.3 | ) | ( i 0.1 | ) | ( i 0.5 | ) | |||||||||
Net
income available to ordinary shareholders of Amcor plc—basic and diluted | $ | i 185.6 | $ | i 138.3 | $ | i 251.5 | $ | i 236.5 | ||||||||
Net
income available to ordinary shareholders of Amcor plc from continuing operations—basic and diluted | $ | i 185.6 | $ | i 138.3 | $ | i 259.2 | $ | i 236.5 | ||||||||
Net
income available to ordinary shareholders of Amcor plc from discontinued operations—basic and diluted | $ | i — | $ | i — | $ | ( i 7.7 | ) | $ | i — | |||||||
Denominator | ||||||||||||||||
Weighted-average
ordinary shares outstanding | i 1,613.7 | i 1,156.6 | i 1,618.6 | i 1,156.5 | ||||||||||||
Weighted-average
ordinary shares to be repurchased by Amcor plc | ( i 0.3 | ) | ( i 2.5 | ) | ( i 0.5 | ) | ( i 2.5 | ) | ||||||||
Weighted-average
ordinary shares outstanding for EPS—basic | i 1,613.4 | i 1,154.1 | i 1,618.1 | i 1,154.0 | ||||||||||||
Effect
of dilutive shares | i 2.0 | i 2.5 | i 1.7 | i 3.6 | ||||||||||||
Weighted-average
ordinary shares outstanding for EPS—diluted | i 1,615.4 | i 1,156.6 | i 1,619.8 | i 1,157.6 | ||||||||||||
Per
ordinary share income | ||||||||||||||||
Income from continuing operations | $ | i 0.115 | $ | i 0.120 | $ | i 0.160 | $ | i 0.205 | ||||||||
Income
from discontinued operations | i — | i — | ( i 0.005 | ) | i — | |||||||||||
Basic
earnings per ordinary share | $ | i 0.115 | $ | i 0.120 | $ | i 0.155 | $ | i 0.205 | ||||||||
Income
from continuing operations | $ | i 0.115 | $ | i 0.120 | $ | i 0.160 | $ | i 0.204 | ||||||||
Income
from discontinued operations | i — | i — | ( i 0.005 | ) | i — | |||||||||||
Diluted
earnings per ordinary share | $ | i 0.115 | $ | i 0.120 | $ | i 0.155 | $ | i 0.204 |
Three
Months Ended December 31, | Six Months Ended December 31, | |||||||||||||||||||||||||||
($ in millions, except per share amounts) | 2019 | 2018 | 2019 | 2018 | ||||||||||||||||||||||||
Net sales | $ | 3,043.1 | 100.0 | % | $ | 2,285.4 | 100.0 | % | $ | 6,183.8 | 100.0 | % | $ | 4,545.6 | 100.0 | % | ||||||||||||
Cost
of Sales | (2,425.8 | ) | (79.7 | %) | (1,832.4 | ) | (80.2 | %) | (5,019.8 | ) | (81.2 | %) | (3,701.0 | ) | (81.4 | %) | ||||||||||||
Gross
profit | 617.3 | 20.3 | % | 453.0 | 19.8 | % | 1,164.0 | 18.8 | % | 844.6 | 18.6 | % | ||||||||||||||||
Operating
expenses: | ||||||||||||||||||||||||||||
Selling,
general, and administrative expenses | (308.3 | ) | (10.1 | %) | (205.3 | ) | (9.0 | %) | (680.2 | ) | (11.0 | %) | (403.6 | ) | (8.9 | %) | ||||||||||||
Research
and development expenses | (23.5 | ) | (0.8 | %) | (17.3 | ) | (0.8 | %) | (49.4 | ) | (0.8 | %) | (31.5 | ) | (0.7 | %) | ||||||||||||
Restructuring
and related expenses | (24.1 | ) | (0.8 | %) | (39.9 | ) | (1.7 | %) | (41.7 | ) | (0.7 | %) | (52.4 | ) | (1.2 | %) | ||||||||||||
Other
income, net | 10.9 | 0.4 | % | 31.0 | 1.4 | % | 20.2 | 0.3 | % | 41.9 | 0.9 | % | ||||||||||||||||
Operating
income | 272.3 | 8.9 | % | 221.5 | 9.7 | % | 412.9 | 6.7 | % | 399.0 | 8.8 | % | ||||||||||||||||
Interest
income | 6.3 | 0.2 | % | 5.2 | 0.2 | % | 13.0 | 0.2 | % | 8.1 | 0.2 | % | ||||||||||||||||
Interest
expense | (52.3 | ) | (1.7 | %) | (52.1 | ) | (2.3 | %) | (112.0 | ) | (1.8 | %) | (108.4 | ) | (2.4 | %) | ||||||||||||
Other
non-operating income (loss), net | 4.4 | 0.1 | % | 5.7 | 0.2 | % | 12.0 | 0.2 | % | 3.1 | 0.1 | % | ||||||||||||||||
Income
from continuing operations before income taxes and equity in income (loss) of affiliated companies | 230.7 | 7.6 | % | 180.3 | 7.9 | % | 325.9 | 5.3 | % | 301.8 | 6.6 | % | ||||||||||||||||
Income
tax expense | (45.1 | ) | (1.5 | %) | (31.1 | ) | (1.4 | %) | (66.9 | ) | (1.1 | %) | (52.8 | ) | (1.2 | %) | ||||||||||||
Equity
in income (loss) of affiliated companies | 2.2 | 0.1 | % | (8.6 | ) | (0.4 | %) | 4.5 | 0.1 | % | (6.9 | ) | (0.2 | %) | ||||||||||||||
Income
from continuing operations | 187.8 | 6.2 | % | 140.6 | 6.2 | % | 263.5 | 4.3 | % | 242.1 | 5.3 | % | ||||||||||||||||
Income
(loss) from discontinued operations | — | — | % | — | — | % | (7.7 | ) | (0.1 | %) | — | — | % | |||||||||||||||
Net
income | $ | 187.8 | 6.2 | % | $ | 140.6 | 6.2 | % | $ | 255.8 | 4.1 | % | $ | 242.1 | 5.3 | % | ||||||||||||
Net
(income) loss attributable to non-controlling interests | (2.2 | ) | (0.1 | %) | (2.0 | ) | (0.1 | %) | (4.2 | ) | (0.1 | %) | (5.1 | ) | (0.1 | %) | ||||||||||||
Net
income attributable to Amcor plc | $ | 185.6 | 6.1 | % | $ | 138.6 | 6.1 | % | $ | 251.6 | 4.1 | % | $ | 237.0 | 5.2 | % |
Three Months Ended December 31, | ||||||||
($ in millions) | 2019 | 2018 | ||||||
Net
sales | $ | 3,043.1 | $ | 2,285.4 | ||||
Operating income | 272.3 | 221.5 | ||||||
Operating
profit as a percentage of net sales | 8.9 | % | 9.7 | % | ||||
Net income attributable to Amcor plc | $ | 185.6 | $ | 138.6 | ||||
Diluted
EPS | $ | 0.115 | $ | 0.120 |
Three
Months Ended December 31, | ||||||||
($ in millions) | 2019 | 2018 | ||||||
Net sales including intersegment sales | $ | 2,414.7 | $ | 1,608.2 | ||||
Adjusted
EBIT from continuing operations | 329.4 | 211.4 | ||||||
Adjusted EBIT from continuing operations as a percentage of net sales | 13.6 | % | 13.1 | % |
Three Months Ended December 31, | ||||||||
($ in millions) | 2019 | 2018 | ||||||
Net
sales including intersegment sales | $ | 629.2 | $ | 677.6 | ||||
Adjusted EBIT from continuing operations | 59.5 | 80.2 | ||||||
Adjusted
EBIT from continuing operations as a percentage of net sales | 9.5 | % | 11.8 | % |
Three
Months Ended December 31, | ||||||||
($ in millions) | 2019 | 2018 | ||||||
Gross profit | $ | 617.3 | $ | 453.0 | ||||
Gross
profit as a percentage of net sales | 20.3 | % | 19.8 | % |
Three
Months Ended December 31, | ||||||||
($ in millions) | 2019 | 2018 | ||||||
SG&A expenses | $ | (308.3 | ) | $ | (205.3 | ) | ||
SG&A
expenses as a percentage of net sales | (10.1 | %) | (9.0 | %) |
Three
Months Ended December 31, | ||||||||
($ in millions) | 2019 | 2018 | ||||||
R&D expenses | $ | (23.5 | ) | $ | (17.3 | ) | ||
R&D
expenses as a percentage of net sales | (0.8 | %) | (0.8 | %) |
Three
Months Ended December 31, | ||||||||
($ in millions) | 2019 | 2018 | ||||||
Restructuring and related expenses | $ | (24.1 | ) | $ | (39.9 | ) | ||
Restructuring
and related expenses as a percentage of net sales | (0.8 | %) | (1.7 | %) |
Three
Months Ended December 31, | ||||||||
($ in millions) | 2019 | 2018 | ||||||
Other income, net | $ | 10.9 | $ | 31.0 | ||||
Other
income, net, as a percentage of net sales | 0.4 | % | 1.4 | % |
Three
Months Ended December 31, | ||||||||
($ in millions) | 2019 | 2018 | ||||||
Interest income | $ | 6.3 | $ | 5.2 | ||||
Interest
income as a percentage of net sales | 0.2 | % | 0.2 | % |
Three Months Ended December 31, | ||||||||
($
in millions) | 2019 | 2018 | ||||||
Interest expense | $ | (52.3 | ) | $ | (52.1 | ) | ||
Interest
expense as a percentage of net sales | (1.7 | %) | (2.3 | %) |
Three Months Ended December 31, | ||||||||
($ in millions) | 2019 | 2018 | ||||||
Other
non-operating income (loss), net | $ | 4.4 | $ | 5.7 | ||||
Other non-operating income (loss), net, as a percentage of net sales | 0.1 | % | 0.2 | % |
Six Months Ended December 31, | ||||||||
($ in millions) | 2019 | 2018 | ||||||
Net
sales | $ | 6,183.8 | $ | 4,545.6 | ||||
Operating income | 412.9 | 399.0 | ||||||
Operating
profit as a percentage of net sales | 6.7 | % | 8.8 | % | ||||
Net income attributable to Amcor plc | $ | 251.6 | $ | 237.0 | ||||
Diluted
EPS | $ | 0.155 | $ | 0.204 |
Six
Months Ended December 31, | ||||||||
($ in millions) | 2019 | 2018 | ||||||
Net sales including intersegment sales | $ | 4,845.5 | $ | 3,142.0 | ||||
Adjusted
EBIT from continuing operations | 619.9 | 368.9 | ||||||
Adjusted EBIT from continuing operations as a percentage of net sales | 12.8 | % | 11.6 | % |
Six Months Ended December 31, | ||||||||
($
in millions) | 2019 | 2018 | ||||||
Net sales including intersegment sales | $ | 1,339.8 | $ | 1,404.3 | ||||
Adjusted
EBIT from continuing operations | 130.0 | 148.5 | ||||||
Adjusted EBIT from continuing operations as a percentage of net sales | 9.7 | % | 10.6 | % |
Six Months Ended December 31, | ||||||||
($ in millions) | 2019 | 2018 | ||||||
Gross
profit | $ | 1,164.0 | $ | 844.6 | ||||
Gross profit as a percentage of net sales | 18.8 | % | 18.6 | % |
Six
Months Ended December 31, | ||||||||
($ in millions) | 2019 | 2018 | ||||||
SG&A expenses | $ | (680.2 | ) | $ | (403.6 | ) | ||
SG&A
expenses as a percentage of net sales | (11.0 | %) | (8.9 | %) |
Six
Months Ended December 31, | ||||||||
($ in millions) | 2019 | 2018 | ||||||
R&D expenses | $ | (49.4 | ) | $ | (31.5 | ) | ||
R&D
expenses as a percentage of net sales | (0.8 | %) | (0.7 | %) |
Six
Months Ended December 31, | ||||||||
($ in millions) | 2019 | 2018 | ||||||
Restructuring and related expenses | $ | (41.7 | ) | $ | (52.4 | ) | ||
Restructuring
and related expenses as a percentage of net sales | (0.7 | %) | (1.2 | %) |
Six
Months Ended December 31, | ||||||||
($ in millions) | 2019 | 2018 | ||||||
Other income, net | $ | 20.2 | $ | 41.9 | ||||
Other
income, net, as a percentage of net sales | 0.3 | % | 0.9 | % |
Six
Months Ended December 31, | ||||||||
($ in millions) | 2019 | 2018 | ||||||
Interest income | $ | 13.0 | $ | 8.1 | ||||
Interest
income as a percentage of net sales | 0.2 | % | 0.2 | % |
Six Months Ended
December 31, | ||||||||
($ in millions) | 2019 | 2018 | ||||||
Interest expense | $ | (112.0 | ) | $ | (108.4 | ) | ||
Interest
expense as a percentage of net sales | (1.8 | %) | (2.4 | %) |
Six
Months Ended December 31, | ||||||||
($ in millions) | 2019 | 2018 | ||||||
Other non-operating income (loss), net | $ | 12.0 | $ | 3.1 | ||||
Other
non-operating income (loss), net, as a percentage of net sales | 0.2 | % | 0.1 | % |
Six
Months Ended December 31, | ||||||||
($ in millions) | 2019 | 2018 | ||||||
Income tax expense | $ | (66.9 | ) | $ | (52.8 | ) | ||
Effective
income tax rate | 20.5 | % | 17.5 | % |
Three
Months Ended December 31, | Six Months Ended December 31, | |||||||||||||||
($ in millions) | 2019 | 2018 | 2019 | 2018 | ||||||||||||
Net income attributable to Amcor plc, as reported | $ | 185.6 | $ | 138.6 | $ | 251.6 | $ | 237.0 | ||||||||
Add:
Net income (loss) attributable to non-controlling interests | 2.2 | 2.0 | 4.2 | 5.1 | ||||||||||||
Less:
(Income) loss from discontinued operations, net of tax | — | — | 7.7 | — | ||||||||||||
Income
from continuing operations | 187.8 | 140.6 | 263.5 | 242.1 | ||||||||||||
Add: Income tax
expense | 45.1 | 31.1 | 66.9 | 52.8 | ||||||||||||
Add: Interest expense | 52.3 | 52.1 | 112.0 | 108.4 | ||||||||||||
Less:
Interest income | (6.3 | ) | (5.2 | ) | (13.0 | ) | (8.1 | ) | ||||||||
EBIT from continuing operations | 278.9 | 218.6 | 429.4 | 395.2 | ||||||||||||
Add:
Material restructuring programs (1) | 23.4 | 27.6 | 40.7 | 37.7 | ||||||||||||
Add: Impairments
in equity method investments (2) | — | 11.4 | — | 13.9 | ||||||||||||
Add: Material acquisition
costs and other (3) | 17.7 | 29.8 | 101.2 | 35.1 | ||||||||||||
Add: Amortization of acquired
intangible assets from business combinations (4) | 40.9 | 4.7 | 109.2 | 9.5 | ||||||||||||
Add/(Less):
Economic net investment hedging activities not qualifying for hedge accounting (5) | — | (4.2 | ) | — | (1.5 | ) | ||||||||||
Add:
Impact of hyperinflation (6) | 3.1 | 9.6 | 18.5 | 19.0 | ||||||||||||
Less: Net legal settlements
(7) | — | (15.5 | ) | — | (15.5 | ) | ||||||||||
Adjusted EBIT from continuing operations | 364.0 | 282.0 | 699.0 | 493.4 | ||||||||||||
Less:
Income tax expense | (45.1 | ) | (31.1 | ) | (66.9 | ) | (52.8 | ) | ||||||||
Add: Adjustments to income tax expense
(8) | (15.9 | ) | (9.2 | ) | (56.1 | ) | (14.4 | ) | ||||||||
Less: Interest expense | (52.3 | ) | (52.1 | ) | (112.0 | ) | (108.4 | ) | ||||||||
Add:
Interest income | 6.3 | 5.2 | 13.0 | 8.1 | ||||||||||||
Less: Net (income) loss attributable to
non-controlling interests | (2.2 | ) | (2.0 | ) | (4.2 | ) | (5.1 | ) | ||||||||
Adjusted net income from continuing
operations | $ | 254.8 | $ | 192.8 | $ | 472.8 | $ | 320.8 |
(1) | Material
restructuring programs includes the 2018 Rigid Packaging Restructuring Plan and the 2019 Bemis Integration Plan for the three and six months ended December 31, 2019. For the three and six months ended December 31, 2018, material restructuring plans include the 2018 Rigid Packaging Restructuring Plan. Refer to Note 5, "Restructuring Plans" of "Item 1. Financial Statements - Notes to Condensed Consolidated Financial Statements," for more information about our restructuring plans. |
(2) | Impairments
in equity method investments includes the impairment charges related to other-than-temporary impairments related to the investment in AMVIG. |
(3) | Material acquisition costs and other includes $58.0 million amortization of Bemis acquisition related inventory fair value step-up and $43.2 million of Bemis transaction related costs and integration costs not qualifying as exit costs for the six months ended December 31, 2019. |
(4) | Amortization
of acquired intangible assets from business combinations includes amortization expenses related to all acquired intangible assets from acquisitions impacting the periods presented, including $26.4 million of sales backlog amortization for the six months ended December 31, 2019 from the Bemis acquisition. |
(5) | Economic net investment hedging activities not qualifying for hedge accounting includes the exchange rate movements on external loans not deemed to be effective net investment hedging instruments resulting from the our conversion to U.S. GAAP from Australian Accounting Standards ("AAS") recognized in other non-operating income (loss), net. |
(6) | Impact
of hyperinflation includes the adverse impact of highly inflationary accounting for subsidiaries in Argentina where the functional currency was the Argentine Peso. |
(7) | Net legal settlements includes the impact of significant legal settlements after associated costs. |
(8) | Net tax impact on items (1) through (7) above. |
($ in millions) | ||||||||
Current portion of long-term debt | $ | 4.2 | $ | 5.4 | ||||
Short-term debt | 353.0 | 788.8 | ||||||
Long-term
debt, less current portion | 5,853.5 | 5,309.0 | ||||||
Total debt | 6,210.7 | 6,103.2 | ||||||
Less
cash and cash equivalents | 673.8 | 601.6 | ||||||
Net debt | $ | 5,536.9 | $ | 5,501.6 |
Six
Months Ended December 31, | ||||||||||||
($ in millions) | 2019 | 2018 | Change YTD 2Q 2020 vs. YTD 2Q 2019 | |||||||||
Cash flow from operating activities | $ | 342.0 | $ | 234.7 | $ | 107.3 | ||||||
Cash
flow from investing activities | 194.0 | (112.9 | ) | 306.9 | ||||||||
Cash flow from financing activities | (442.1 | ) | (229.9 | ) | (212.2 | ) |
Period | Total
Number of Shares Purchased (2) | Average Price Paid Per Share (2)(3) | Total Number of Shares Purchased as Part of Publicly Announced Plans or Programs | Approximate Dollar Value of Shares That May Yet Be Purchased Under the Programs (1) | ||||||||||
October 1 - 31, 2019 | — | $ | — | — | $ | 441.8 | ||||||||
November
1 - 30, 2019 | 7,556 | 10.03 | 7,547 | 366.1 | ||||||||||
December 1 - 31, 2019 | 8,637 | 10.33 | 8,547 | 277.8 | ||||||||||
Total | 16,193 | $ | 10.19 | 16,094 |
(1) | On
August 20, 2019, our Board of Directors approved an on-market buy-back program of $500 million of ordinary shares and CHESS Depositary Instruments ("CDIs"). Board authorizations remain in effect until shares in the amount authorized thereunder have been repurchased. |
(2) | Includes shares purchased on the open market to satisfy the vesting and exercises of share-based compensation awards. |
(3) | Includes shares purchased on the open market to satisfy the vesting and
exercises of share-based compensation awards. Average price paid per share excludes costs associated with the repurchase. |
Exhibit | Description | Form of Filing | ||
3.1 | Incorporation by Reference | |||
3.2 | Incorporation by Reference | |||
31.1 | ||||
31.2 | ||||
32 | Furnished Herewith | |||
101.INS | XBRL Instance Document - the instance document does not appear in the Interactive Data file because its XBLR tags are embedded within the Inline XBRL document. | Filed Electronically | ||
101.SCH | XBRL
Taxonomy Extension Schema Document. | Filed Electronically | ||
101.CAL | XBRL Taxonomy Extension Calculation Linkbase Document. | Filed Electronically | ||
101.DEF | XBRL Taxonomy Extension Definition Linkbase Document. | Filed
Electronically | ||
101.LAB | XBRL Taxonomy Extension Label Linkbase Document. | Filed Electronically | ||
101.PRE | XBRL Taxonomy Extension Presentation Linkbase Document. | Filed Electronically | ||
104 | Cover
Page Interactive File (formatted as Inline XBRL and contained in Exhibit 101). | Filed Electronically |
AMCOR PLC | |||
Date | By | ||
Michael Casamento, Executive Vice President and Chief Financial Officer |
This ‘10-Q’ Filing | Date | Other Filings | ||
---|---|---|---|---|
7/1/21 | ||||
12/15/20 | ||||
7/1/20 | CERT | |||
3/24/20 | EFFECT | |||
3/4/20 | ||||
3/3/20 | ||||
Filed on: | 2/11/20 | 8-K | ||
2/7/20 | SC 13G | |||
For Period end: | 12/31/19 | |||
12/15/19 | ||||
11/4/19 | ||||
9/30/19 | 10-Q | |||
9/25/19 | ||||
9/6/19 | ||||
9/3/19 | 10-K, 4 | |||
8/21/19 | ||||
8/20/19 | 3, 8-K | |||
8/8/19 | 4 | |||
7/1/19 | ||||
6/30/19 | 10-K | |||
6/24/19 | ||||
6/11/19 | 3, 4, 8-K | |||
4/19/19 | ||||
4/18/19 | 425 | |||
4/17/19 | ||||
4/15/19 | ||||
2/11/19 | 425 | |||
12/31/18 | ||||
12/15/18 | ||||
9/30/18 | ||||
8/21/18 | ||||
8/6/18 | 425 | |||
7/1/18 | ||||
6/30/18 | ||||
List all Filings |
As Of Filer Filing For·On·As Docs:Size Issuer Filing Agent 5/18/23 Amcor plc 424B5 2:964K Toppan Merrill/FA 5/17/23 Amcor Finance (USA), Inc. 424B5 1:938K Toppan Merrill/FA 5/11/22 Amcor Flexibles North America Inc 424B5 2:998K Toppan Merrill/FA 5/10/22 Amcor Flexibles North America Inc 424B5 1:940K Toppan Merrill/FA 5/20/21 Amcor Flexibles North America Inc 424B5 1:939K Toppan Merrill/FA 5/18/21 Amcor Flexibles North America Inc 424B5 1:921K Toppan Merrill/FA |