Amcor Annual Report 2022
Contents
3
Strength.
Innovation.
Growth.
With multiple, strategic initiatives working
in tandem across the globe, Amcor
continues to deliver consistently strong
financial performance. We follow a clear,
proven strategy built on a solid foundation
that has allowed us to invest in future growth
opportunities and lead the industry on
game-changing sustainability innovations.
Contents
Message from the Chairman
of the Board and the CEO
Amcor at a glance
Our strategy
Sustainability and innovation
3
5
7
9
Amcor fiscal 2022 operating review
13
Form 10-K
Other information
Reconciliation of non-GAAP measures
Contact
1-114
17
20
23
Amcor Annual Report 2022
Welcome message
4
Message from the Chairman
of the Board and the CEO
Dear shareholders,
Outstanding year of execution and growth
Fiscal 2022 was another outstanding year for Amcor.
Our co-workers have continued to demonstrate remarkable
perseverance and agility, executing well in a challenging
operating environment that remains impacted by the
lingering effects of the COVID-19 pandemic, severe
disruptions to global supply chains, persistent and rising
inflation, and the Russia-Ukraine conflict.
In the fiscal year ended June 30, 2022 (FY22), Amcor
delivered another year of strong results. Organic sales
growth of 4% marked the third consecutive year of
accelerating top line growth, which translated into earnings
per share growth of 11% on a comparable constant
currency basis. The business picked up momentum through
the year, with the fourth quarter being the strongest from
both a sales and a profit-growth standpoint. During the
year, we were also successful in passing through $1.5 billion
in costs related to higher raw materials pricing, as well as
other inflationary costs. As we enter our 2023 fiscal year,
we are well positioned to maintain this momentum.
Strong free cash flow of $1.1 billion was another highlight
of our financial 2022 year. This enabled us to increase
our cash returns to shareholders to more than $1.3 billion
dollars via $600 million of share repurchases and a
compelling and growing annual dividend.
A winning strategy
Our dedicated employees are central to our success, and
we believe that having the best talent and capabilities
in the industry will ensure we prosper now and in the
future. For many years we have made the well-being and
development of our 44,000 global employees our number
one objective, and this will continue to be a critical part of
our overall strategy.
Our financial performance continues to reflect Amcor’s
strong foundation and the ability of our teams to
consistently deliver against our strategy. Amcor has
leadership positions in most of our chosen primary
packaging segments and over 95% of our sales are in
consumer staples and healthcare end markets. We have
absolute and relative scale advantages in all key regions,
industry-leading commercial and innovation capabilities
and a proven track record through multiple economic
cycles of delivering margin expansion, earnings growth,
and significant free cash flow.
A key driver of value for shareholders will always be
the underlying organic growth of the business. We have
continually strengthened the base business and have built
sustainable organic sales and profit growth momentum
over the last several years. The drivers of this growth
include high-growth, high-value priority segments, a
leading and well diversified emerging markets portfolio
and the ability to leverage our strength in innovation.
We are excited by the broad range of opportunities we
see in these areas and, to help maintain the momentum
we have built, we are stepping up our investments for
growth. For example, during FY22 we opened a state-
of-the-art healthcare packaging facility in Singapore to
serve accelerating demand in the Asia-Pacific region and
also commenced a multimillion-dollar investment in new
thermoforming capabilities for medical packaging in our
existing plant in Ireland.
In recent years, we have invested in establishing best-
in-class research and development (R&D) capabilities.
We now offer customers a global network of world-class
innovation centers with unique features and services
that enable customers to collaborate with our packaging
experts and make innovative and value-creating ideas
a reality. But we remain hungry and open minded in
our search for disruptive innovative ideas beyond our
own in-house R&D. In FY22, we deployed seed capital
into promising start-up players ePac and PragmatIC
Semiconductor, which has enabled us to gather further
insights and traction into new technologies and
business models.
Amcor Annual Report 2022
4
Welcome message
5
Our efforts on sustainability are embedded in everything
we do, from the way we manage our operations and
greenhouse gas emissions to our vendor partnerships. In
January 2022, Amcor further increased its sustainability
efforts by joining the Science-Based Targets Initiative to
ensure we achieve net zero emissions by 2050.
Our proven track record of performance, unique industry-
differentiated capabilities, defensive end market exposure,
and strong investment grade balance sheet make the
investment case for Amcor stronger than ever before
- and particularly compelling in the current context of
continued macroeconomic challenges.
We are guided by the belief that three key dimensions –
package design, infrastructure development and consumer
participation – working together, hold the key to a more
sustainable, circular economy for packaging.
We are proud of what our company and
our employees around the world have achieved,
collectively and individually, and we thank you,
our shareholders, for your continued support.
In FY22, we expanded on our sustainability leadership by
launching proprietary innovations such as our AmFiber™
family of paper-based products, the recycle-ready
PVC-free AmSky™ blister system for healthcare
applications and the new generation of recycle-ready
AmPrima™ films. These global product platforms represent
a clear opportunity for us to leverage our unique reach,
scale and differentiated innovation for multi-national
customers. With approximately 75% of Amcor offerings
already recycle-ready, the consistent launch of new
products with better sustainability features underscores
our steady progress towards developing every product
Amcor makes to be recyclable or reusable by 2025.
Compelling investment case
With multiple, strategic initiatives working in tandem
across the globe, Amcor continues to deliver consistently
strong financial performance. We follow a clear, proven
strategy built on a solid foundation that has allowed us to
invest in future growth opportunities and lead the industry
on game-changing sustainability innovations.
We are delivering on our commitments, accelerating
earnings growth and generating significant annual cash
flow, increasing investments in high growth end markets
and geographies as well as delivering value to shareholders
through share repurchase and a compelling,
growing dividend.
Graeme Liebelt
Chairman
Ron Delia
CEO
Amcor Annual Report 2022
Amcor at a glance
6
Amcor at a glance - Fiscal 2022
Global sales USD
~15 billion
77%
Flexibles
23%
Rigid packaging
Employees
~44,000
43
Countries
~220
Sites
Global sales by region
48%
North
America
22%
Western
Europe
27%
Emerging
markets
3%
Australia &
New Zealand
Flexibles
Rigid packaging
Amcor’s Flexibles business has a global presence and
is one of the world’s largest developers and suppliers
of flexible packaging and specialty folding cartons.
Amcor’s Rigid Packaging business is one of the
world’s largest suppliers of plastic containers
and closures.
Overview 2022
Overview 2022
Sales USD11.2 billion • Number of plants ~170
Countries 39 • Employees ~38,0001
Sales USD3.4 billion • Number of plants ~50
Countries 11 • Employees ~6,000
End markets
End markets
The business develops and produces flexible
packaging for food, beverage, pharmaceutical,
medical, home and personal care, and other products.
The business develops and produces rigid
containers and closures for food, beverage, spirits,
home and personal care, and healthcare products.
(1) Includes employees in corporate functions
Amcor Annual Report 2022
6
Amcor at a glance
7
Amcor winning strategy
Winning aspiration
Focused portfolio
To be THE
leading global
packaging
company
The Amcor Way
Differentiated capabilities that enable us to win:
Flexible packaging
Flexible packaging
Rigid packaging
Rigid packaging
Specialty cartons
Specialty cartons
Closures
Closures
Talent
Commercial
Excellence
Operational
Leadership
Innovation
Cash and
Capital Discipline
Resilient investment case: strong foundation for growth & value creation
Attractive and growing dividend
Attractive and growing dividend
Attractive and growing dividend
Attractive and growing dividend
primary packaging for consumer staples and healthcare
Global leader in primary packaging for consumer staples and healthcare
primary packaging for consumer staples and healthcare
primary packaging for consumer staples and healthcare
Global leader in primary packaging for consumer staples and healthcare
Global leader in primary packaging for consumer staples and healthcare
with current yield >4%
with current yield >4%
Global leader in
Attractive and growing dividend
Attractive and growing dividend
Attractive and growing dividend
Attractive and growing dividend
Consistent growth from priority segments, emerging markets and innovation
Consistent growth from priority segments, emerging markets and innovation
Consistent growth
Consistent growth from priority segments, emerging markets and innovation
from priority segments, emerging markets and innovation
from priority segments, emerging markets and innovation
from priority segments, emerging markets and innovation
with current yield >4%
with current yield >4%
Attractive and growing dividend
Attractive and growing dividend with current yield >4%
Strong cash flow and balance sheet provide ongoing capacity to invest
Attractive and growing dividend
Attractive and growing dividend with current yield >4%
Increasing investment for growth and building momentum
Compelling and growing dividend with current yield ~4%
Attractive and growing dividend with current yield >4%
Attractive and growing dividend
EPS growth
+ Dividend yield
= 10-15% per year
Amcor Annual Report 2022
Our strategy
8
Our
Strategy
Amcor Annual Report 2022
8
Our strategy
9
- Multiple paths for us to win through
our leadership position, scale and
ability to differentiate our product
offering through innovation.
These criteria have led us to
the focused portfolio of strong
businesses we have today across:
flexibles and rigid packaging,
specialty cartons and closures.
Differentiated capabilities
‘The Amcor Way’ describes the
capabilities deployed consistently
across Amcor that enable us to
get leverage across our portfolio:
Talent, Commercial Excellence,
Operational Leadership, Innovation,
and Cash and Capital Discipline.
Our values of Safety, Integrity,
Collaboration, Accountability, and
Results and Outperformance guide
our behavior, driving our winning
aspiration to be THE leading global
packaging company.
Shareholder value creation
Through our portfolio of focused
businesses and differentiated
capabilities, we generate strong
cash flow and redeploy cash to
consistently create superior value
for shareholders. The nature of
our consumer and healthcare end
markets mean that year-to-year
volatility should be relatively low,
measured on a constant currency
basis. Over time value creation
has been strong and consistent
and has reflected a combination of
organic growth in the base business,
dividends and the use of free cash
flow to pursue targeted acquisitions
or return cash to shareholders via
share buybacks.
Amcor is a global leader
in developing and
producing responsible
packaging solutions
for food, beverage,
pharmaceutical, medical,
home and personal care,
and other products.
Amcor works with leading
companies around the world
to protect their products and
the people who rely on them,
differentiate brands, and improve
supply chains through a range
of flexible and rigid packaging,
specialty cartons, closures,
and services. The company is
focused on making packaging
that is increasingly light-weighted,
recyclable and reusable, and made
using an increasing amount of
recycled content. In fiscal year 2022,
44,000 Amcor people generated
$15 billion in annual sales from
operations that span 220 sites
in 43 countries.
Strategy
Our business strategy consists
of three components: a focused
portfolio, differentiated capabilities,
and our aspiration to be THE leading
global packaging company. To fulfil
our aspiration, we are determined to
win for our people, our customers,
our investors and the environment.
Focused portfolio
Our business portfolio shares
certain important characteristics:
- A focus on primary packaging for
fast-moving consumer goods.
- Good industry structure.
- Attractive relative growth.
Summary
Amcor has maintained a consistent
strategy and business model.
We have a unique combination
of talented people, differentiated
capabilities, scale and global reach.
Our innovation excellence and
packaging expertise enables us to
solve packaging challenges around
the world every day, producing
packaging that is more functional,
appealing, and cost effective. These
powerful competitive advantages
enable us to better serve our
customers and their consumers,
and importantly, to develop and
deliver packaging that best protects
the environment. By remaining
focused on our strategy and
our unique value proposition for
customers, the company expects
to continue to grow and drive
strong returns for shareholders
and other stakeholders.
(cid:5) (cid:44)n fiscal (cid:92)ear 2022(cid:15)
(cid:23)(cid:23)(cid:15)000 Amcor people
generated $15 billion
in annual sales from
operations that span
220 sites in (cid:23)(cid:22) co(cid:88)ntries(cid:17)(cid:5)
Amcor Annual Report 2022
Sustainability and innovation
(cid:20)0
Sustainability
& Innovation
Amcor Annual Report 2022
Sustainability remains Amcor’s most exciting
opportunity for growth. We are leveraging our
unique scale, reach and expertise to meet customers’
growing s(cid:88)staina(cid:69)ilit(cid:92) e(cid:91)pectations(cid:17) (cid:44)n (cid:41)(cid:60)22(cid:15) we saw
a (cid:73)(cid:88)rt(cid:75)er acceleration o(cid:73) o(cid:88)r e(cid:871)orts in responsi(cid:69)le
packaging, delivering a variety of packaging
innovations alongside key partnerships to support
improvements in waste management infrastructure
and consumer participation to improve collection
and recycling of Amcor’s products.
We also saw great traction on
the launch of our new paper-
based platform, AmFiber™. This
new platform delivers an oxygen
and moisture barrier to protect
products and demonstrates Amcor’s
consumer-centric and adaptable
approach to innovation, providing
customers the best in packaging
technology using the materials
most suited to their needs.
We are also working hard to secure
more recycled raw materials to use
in our products and are proud to
be the first company to purchase
certified circular polyethylene
material using ExxonMobil’s
Exxtend™ technology for advanced
recycling. This new technology will
result in more sustainable flexible
polyethylene packaging, allowing
us to provide customers in the
healthcare and food industries
with circular content of equal
quality and performance to those
made with virgin raw materials.
We have also continued to be the
partner of choice for many of the
world’s leading brands as they look
to us for expertise and support in
meeting growing consumer demand
for more sustainable products.
Product innovation
We are on a journey of continuous
improvement to use less materials,
incorporate more recycled content
and ensure that our products have
a better end-of-life profile, and are
committed to partnering with our
customers to ensure that they get
the best solution to meet their
unique needs.
In the past year, we have brought
to market many new products for
customers, with particular success
in products that are designed to
be recyclable. Just one example of
this was the launch of a label-less
bottle for Danone’s Villavicencio
water brand. Made from 100%
recycled content, the recyclable
bottle also has a reduced carbon
footprint of 21% compared to the
previous bottle. Another example is
a breakthrough innovation for the
food industry with the first heat-
resistant, recycle-ready solution
for liquid pouches that allows for a
49% reduction in carbon footprint
compared to a three-ply foil solution
when recycled.
Sustainability and innovation
11
Amcor Annual Report 2022
End Plastic Waste and our joint
endeavor with Delterra’s Rethinking
Recycling program, an initiative that
aims to empower communities to
build inclusive and efficient waste-
management and recycling systems.
Twelve months in, and the initiative
has quickly scaled to over 6,500
residents and 350 businesses, with
active participation from almost
50% of homes.
A laser focus
on sustainability
We continue to drive down the
environmental impact of our
operations and products and we
are proud to build on our progress
to date with a commitment to
science-based targets, including
a new mission to achieve net zero
emissions by 2050.
We also unveiled a rebrand of our
global product portfolio, which
is designed to give customers a
clearer, holistic view of our growing
portfolio of more sustainable
packaging solutions. The redesign
of our product portfolio included
the launch of the new Amcor
EcoGuard™ brand, which allows
customers to quickly identify
packaging options that offer
sustainable features.
New technology
The development of new
technologies and approaches is
critical to maintaining our unique
capabilities in product innovation.
We announced an additional
investment in ePac, a company
designed to bring connected
packaging technology to small- and
medium-sized consumer goods
companies. This joins Amcor’s
strategic investment into PragmatIC
Semiconductor, a world leader in
ultra, low-cost electronics that will
enable smart packaging applications
across the entire product lifecycle.
We also launched the Amcor
Lift-Off program - an open-call
initiative aimed at supporting
seed stage start-ups focused
on innovative solutions and
related technologies for more
sustainable packaging.
Powerful partnerships
We know that no matter how
much innovation, material science
and genuine hard work we put into
making our products recyclable,
this must be backed up with the
infrastructure to ensure that
our products are collected and
recycled in practice and at scale.
We continue to make progress
to improve waste management
and consumer education to
keep our products out of the
environment, including key
initiatives with partners,
including the non-governmental-
organization community.
Examples of this include our
partnership with the Alliance to
Sustainability and innovation
(cid:20)2
Amcor Annual Report 2022
(cid:20)2
Sustainability and innovation
13
Amcor Annual Report 2022
Amcor fiscal 2022
operating review
14
Amcor fiscal 2022 operating review
Highlights
- Net sales of $14,544 million, up 13%;
- GAAP Net Income of $805 million; GAAP earnings
per share (EPS) of 52.9 cps;
- Adjusted EPS of 80.5 cps, up 11% on a comparable
constant currency basis, at the top end of guidance range;
- Adjusted EBIT of $1,701 million, up 7% on a comparable
constant currency basis;
- Adjusted Free Cash Flow of $1,066 million in line
with guidance;
- Significant increase in cash returns to shareholders: annual
dividend increased to 48.0 cents per share; $600 million
of shares repurchased (approximately 3% of outstanding
shares); and
- Fiscal 2023 outlook: Adjusted EPS growth on a comparable
constant currency basis of 3-8% including an adverse
impact of approximately 4% from higher interest expense
(adjusted EPS of 80-84 cents per share on a reported
basis). Adjusted Free Cash Flow of $1.0-$1.1 billion and
approximately $400 million of share repurchases.
Key Financials1
GAAP results
Net sales
Net income
EPS (diluted US cents)
Twelve months ended June 30
2021 $ million
2022 $ million
(cid:20)2(cid:15)(cid:27)(cid:25)(cid:20)
939
(cid:25)0(cid:17)2
14,544
(cid:27)0(cid:24)
(cid:24)2(cid:17)(cid:28)
Adjusted non-GAAP results
2021 $ million
2022 $ million
Reported (cid:31)%
Comparable
constant currency (cid:31)%
Twelve months ended June 30
Net sales2
EBITDA
EBIT
Net income
EPS (diluted US cents)
Free Cash Flow
(cid:20)2(cid:15)(cid:27)(cid:25)(cid:20)
2(cid:15)02(cid:27)
(cid:20)(cid:15)(cid:25)2(cid:20)
1,158
74.4
(cid:20)(cid:15)0(cid:28)(cid:28)
14,544
2(cid:15)(cid:20)(cid:20)(cid:26)
(cid:20)(cid:15)(cid:26)0(cid:20)
(cid:20)(cid:15)22(cid:23)
(cid:27)0(cid:17)(cid:24)
(cid:20)(cid:15)0(cid:25)(cid:25)
13
4
5
6
8
4
7
7
8
11
(1) Adjusted non-GAAP results exclude items which are not considered representative of ongoing operations. Comparable constant currency (cid:31)% excludes the impact of movements
in foreign exchange rates and items affecting comparability. Further details related to non-GAAP measures and reconciliations to GAAP measures can be found under "Presentation
of non-GAAP information” in this release.
(2) Comparable constant currency (cid:31)% for net sales excludes a 12% impact from the pass through of raw material costs, a 2% unfavorable currency impact and a 1% unfavorable
impact from items affecting comparability.
Note: All amounts referenced throughout this document are in US dollars unless otherwise indicated and numbers may not add up precisely to the totals provided due to rounding.
Amcor Annual Report 2022
14
Amcor fiscal 2022
operating review
15
Cash returns to shareholders
Amcor generates significant cash flow, maintains strong
credit metrics and is committed to an investment grade
credit rating. This annual cash flow provides substantial
capacity to simultaneously reinvest in the business for
organic growth, pursue acquisitions and return cash to
shareholders through a compelling and growing dividend
as well as regular share repurchases.
Share repurchases
$600 million was used to repurchase shares in fiscal 2022,
which reduced the total number of shares issued and
outstanding by approximately 3%.
Amcor expects to allocate approximately $400 million
of cash towards share repurchases in the 2023 fiscal year.
Update on businesses in Russia and Ukraine
We are all witnessing a tragic situation in Ukraine.
Amcor has one plant in Ukraine, which was closed at
the onset of the conflict, and three plants in Russia.
After a thorough review of all strategic options, we made
the decision to sell our three plants in Russia, and we are
working towards finalizing a sale during the second half
of the 2023 fiscal year. Until completion, Amcor remains
committed to supporting our employees and customers,
while preserving value for shareholders as we progress
an orderly sale process.
2022 Financial Results
Segment Information
Twelve months ended June 30, 2021
Twelve months ended June 30, 2022
Adjusted
non-GAAP results
Net sales
$ million
EBIT
$ million
EBIT /
Sales %
EBIT / Average
funds employed %1
Net sales
$ million
EBIT
$ million
EBIT /
Sales %
EBIT / Average
funds employed %1
Flexibles
Rigid Packaging
Other
Total Amcor
(cid:20)0(cid:15)0(cid:23)0
2(cid:15)(cid:27)2(cid:22)
(cid:11)2(cid:12)
12,861
(cid:20)(cid:15)(cid:23)2(cid:26)
2(cid:28)(cid:28)
(cid:11)(cid:20)0(cid:24)(cid:12)
1,621
(cid:20)(cid:23)(cid:17)2
(cid:20)0(cid:17)(cid:25)
12.6
11,151
3,393
–
15.4
14,544
1,517
2(cid:27)(cid:28)
(cid:11)(cid:20)0(cid:24)(cid:12)
1,701
13.6
8.5
11.7
16.3
(1) Return on average funds employed includes shareholders equity and net debt, calculated using a four quarter average and Last Twelve Months adjusted EBIT.
Full year net sales for the Amcor Group increased by 13% on a reported basis, which includes price increases of approximately
$1,530 million (representing 12% growth) related to the pass through of higher raw material costs and a combined unfavorable
impact of 3% related to items affecting comparability and currency.
Full year net sales were 4% higher than the same period last year on a comparable constant currency basis largely reflecting
favorable price/mix. Full year volumes were also higher than the prior year.
Full year adjusted EBIT of $1,701 million was 7% higher than last year on a comparable constant currency basis. Adjusted EBIT
margins of 11.7% remained strong despite an adverse impact of 140 basis points related to pass through of higher raw material
costs and return on average funds employed expanded by 90 basis points to 16.3%.
Amcor Annual Report 2022
Amcor fiscal 2022
operating review
16
Flexibles
Net sales
Adjusted EBIT
Adjusted EBIT / Sales %
Twelve months ended June 30
2021 $ million
2022 $ million
Reported (cid:31)%
Comparable
constant currency (cid:31)%
(cid:20)0(cid:15)0(cid:23)0
(cid:20)(cid:15)(cid:23)2(cid:26)
(cid:20)(cid:23)(cid:17)2
11,151
1,517
13.6
11
6
4
9
On a reported basis, full year net sales of $11,151 million
were 11% higher, which includes price increases of
approximately $1,091 million (representing 11% growth)
related to the pass through of higher raw material costs
and a combined unfavorable impact of 4% related to items
affecting comparability and currency. Full year net sales
were 4% higher than the prior period on a comparable
constant currency basis reflecting favorable price/mix.
Amcor continues to successfully execute its long-term
strategy of driving growth in priority high value segments
and end markets which has driven strong mix benefits
in each quarter of fiscal 2022. Persistent supply chain
disruptions had a dampening effect on volume growth
in some categories through the year, and in parts of
the business actions were taken to direct constrained
materials to their highest value use, which also had a
favorable impact on mix. As a result, overall volumes
for the full year were broadly in line with the same
period last year.
In North America, full year net sales grew in the mid single
digit range driven by a balance of favorable mix and higher
volumes. Volumes were higher in the medical, condiments,
liquid beverage and confectionary end markets, partly
offset by lower coffee and frozen food volumes.
In Europe, full year net sales grew in the mid single digit
range driven by strong mix. Higher volumes across a broad
range of end markets including pet food, healthcare,
premium coffee, meat and confectionary were more than
offset by lower film and foil rollstock volumes.
Full year net sales and volumes grew at mid single digit
rates across the Asian emerging markets. In Latin America,
net sales grew at mid single digit rates and while volumes
were lower than the same period last year, this was more
than offset by price/mix which continued to strengthen
through the year.
Full year adjusted EBIT of $1,517 million was 9% higher
than in the prior period on a comparable constant currency
basis reflecting growth in priority high value segments,
inflation recovery and strong cost performance.
Adjusted EBIT margins of 13.6% remained strong despite
an adverse impact of 150 basis points related the pass
through of higher raw material costs.
Rigid Packaging
Net sales
Adjusted EBIT
Adjusted EBIT / Sales %
Twelve months ended June 30
2021 $ million
2022 $ million
Reported (cid:31)%
Comparable
constant currency (cid:31)%
2(cid:15)(cid:27)2(cid:22)
2(cid:28)(cid:28)
(cid:20)0(cid:17)(cid:25)
3,393
2(cid:27)(cid:28)
8.5
20
(cid:11)(cid:22)(cid:12)
5
(cid:11)(cid:23)(cid:12)
Amcor Annual Report 2022
16
Amcor fiscal 2022
operating review
17
On a reported basis, full year
net sales of $3,393 million were
20% higher than the prior year,
which includes price increases
of approximately $439 million
(representing 16% growth) related
to the pass through of higher raw
material costs. Full year net sales
were 5% higher than the prior
period on a comparable constant
currency basis reflecting volume
growth of 3% and a favorable price/
mix benefit of 2%.
In North America, full year beverage
volumes were 1% higher than the
prior year. Full year hot fill container
volumes were up 2% against a
strong prior year of 13% growth
reflecting continued growth in key
categories. Specialty container
volumes continued to improve
sequentially but on a full year basis
volumes were lower than last year
which benefited from a strong first
half in the home and personal
care category.
In Latin America, full year volumes
grew at a double digit rate with
higher volumes in Argentina,
Colombia, Mexico, and Peru.
The business achieved its strongest
volume growth for the year in the
June quarter, led in part by strength
in Brazil.
Full year adjusted EBIT of $289
million reflects lower earnings in
North America, partly offset by
higher earnings in Latin America.
Through the first half of the year,
the business in North America was
adversely impacted by industry
wide supply chain disruptions and
shortages of key raw materials.
Operating conditions and financial
performance improved sequentially
with adjusted EBIT for the June
2022 quarter increasing by 5%
compared to the prior year period,
building on 4% adjusted EBIT
growth delivered in the March
2022 quarter.
Amcor Annual Report 2022
Indicate by chec(cid:64) mar(cid:64) if the (cid:45)egistrant is not required to file reports pursuant to Section 13 or Section 15(d) of the
Act. (cid:52)es ☐ (cid:41)o ☒
Indicate by chec(cid:64) mar(cid:64) (cid:76)hether the registrant(cid:25) (1) has filed all reports required to be filed by Section 13 or 15(d) of the
Securities E(cid:77)change Act of 1(cid:24)34 during the preceding 12 months (or for such shorter period that the registrant (cid:76)as required to
file such reports)(cid:11) and (2) has been sub(cid:63)ect to such filing requirements for the past (cid:24)0 days. (cid:52)es ☒ (cid:41)o ☐
Indicate by chec(cid:64) mar(cid:64) (cid:76)hether the registrant has submitted electronically every Interactive (cid:31)ata File required to be
submitted pursuant to (cid:45)ule 405 of (cid:45)egulation S(cid:12)(cid:47) ((cid:81)232.405 of this chapter) during the preceding 12 months (or for such
shorter period that the registrant (cid:76)as required to submit such files). (cid:52)es ☒ (cid:41)o ☐
Indicate by chec(cid:64) mar(cid:64) (cid:76)hether the registrant is a large accelerated filer(cid:11) an accelerated filer(cid:11) a non(cid:12)accelerated filer(cid:11) a
smaller reporting company(cid:11) or an emerging gro(cid:76)th company. See the definitions of "large accelerated filer(cid:11)" "accelerated filer(cid:11)"
"smaller reporting company(cid:11)" and "emerging gro(cid:76)th company" in (cid:45)ule 12b(cid:12)2 of the E(cid:77)change Act. (Chec(cid:64) one)(cid:25)
Large Accelerated Filer
Accelerated Filer
(cid:41)on(cid:12)Accelerated Filer
☒
☐
☐
Smaller (cid:45)eporting Company
Emerging (cid:34)ro(cid:76)th Company
☐
☐
If an emerging gro(cid:76)th company(cid:11) indicate by chec(cid:64) mar(cid:64) if the registrant has elected not to use the e(cid:77)tended transition
period for complying (cid:76)ith any ne(cid:76) or revised financial accounting standards provided pursuant to Section 13(a) of the
E(cid:77)change Act. ☐
☐ (cid:41)o ☒
Indicate by chec(cid:64) mar(cid:64) (cid:76)hether the registrant has filed a report on and attestation to its management(cid:89)s assessment of
the effectiveness of its internal control over financial reporting under Section 404(b) of the Sarbanes(cid:12)O(cid:77)ley Act (15 (cid:48).S.C.
7262(b)) by the registered public accounting firm that prepared or issued its audit report. ☒
Indicate by chec(cid:64) mar(cid:64) (cid:76)hether the registrant is a shell company (as defined in (cid:45)ule 12b(cid:12)2 of the E(cid:77)change Act). (cid:52)es
(cid:47)he aggregate mar(cid:64)et value of the ordinary shares held by non(cid:12)affiliates of the registrant(cid:11) computed by reference to the
closing price of such shares as of the last business day of the registrant(cid:89)s most recently completed second quarter(cid:11) (cid:76)as
As of August 16(cid:11) 2022(cid:11) the (cid:45)egistrant had 1(cid:11)48(cid:24)(cid:11)01(cid:24)(cid:11)556 shares issued and outstanding.
DOC(cid:45)(cid:37)E(cid:38)(cid:44)S I(cid:38)CORPORA(cid:44)ED BY REFERE(cid:38)CE
Form 10-K
1
(cid:45)(cid:38)I(cid:44)ED S(cid:44)A(cid:44)ES
SEC(cid:45)RI(cid:44)IES A(cid:38)D E(cid:48)C(cid:32)A(cid:38)(cid:31)E CO(cid:37)(cid:37)ISSIO(cid:38)
Washington, D(cid:12)C(cid:12) 20(cid:19)(cid:18)(cid:23)
FOR(cid:37) 10-(cid:35)
☒ A(cid:38)(cid:38)(cid:45)AL REPOR(cid:44) P(cid:45)RS(cid:45)A(cid:38)(cid:44) (cid:44)O SEC(cid:44)IO(cid:38) 13 OR 1(cid:19)(d) OF (cid:44)(cid:32)E SEC(cid:45)RI(cid:44)IES E(cid:48)C(cid:32)A(cid:38)(cid:31)E AC(cid:44) OF 1(cid:23)3(cid:18)
For the fiscal year ended June 30, 2022
or
☐ (cid:44)RA(cid:38)SI(cid:44)IO(cid:38) REPOR(cid:44) P(cid:45)RS(cid:45)A(cid:38)(cid:44) (cid:44)O SEC(cid:44)IO(cid:38) 13 OR 1(cid:19)(d) OF (cid:44)(cid:32)E SEC(cid:45)RI(cid:44)IES E(cid:48)C(cid:32)A(cid:38)(cid:31)E AC(cid:44) OF 1(cid:23)3(cid:18)
For the transition period from (cid:50)(cid:50)(cid:50)(cid:50)(cid:50)(cid:50)(cid:50)(cid:50)(cid:50)(cid:50) to (cid:50)(cid:50)(cid:50)(cid:50)(cid:50)(cid:50)(cid:50)(cid:50)(cid:50)(cid:50)
Commission File (cid:38)umber 001-3(cid:22)(cid:23)32
A(cid:37)COR PLC
(E(cid:77)act name of registrant as specified in its charter)
(State or other (cid:63)urisdiction of incorporation or organi(cid:79)ation)
(I.(cid:45).S. Employer Identification (cid:41)o.)
Jersey
(cid:23)(cid:22)-1(cid:18)(cid:19)(cid:19)3(cid:20)(cid:21)
$18.1 billion.
(cid:22)3 (cid:44)ower Road (cid:38)orth
Warmley, Bristol
(cid:45)nited (cid:35)ingdom
(Address of principal e(cid:77)ecutive offices)
BS30 (cid:22)(cid:48)P
((cid:53)ip Code)
Certain information required for (cid:43)art III of this Annual (cid:45)eport on Form 10(cid:12)(cid:38) is incorporated by reference to the
Amcor plc definitive (cid:43)ro(cid:77)y Statement for its 2022 Annual Shareholder (cid:40)eeting(cid:11) (cid:76)hich (cid:76)ill be filed (cid:76)ith the Securities and
E(cid:77)change Commission pursuant to (cid:45)egulation 14A of the Securities E(cid:77)change Act of 1(cid:24)34(cid:11) as amended(cid:11) (cid:76)ithin 120 days of
Amcor plc(cid:89)s fiscal year end.
(cid:45)egistrant(cid:89)s telephone number(cid:11) including area code(cid:25) (cid:9)(cid:18)(cid:18) 11(cid:21) (cid:23)(cid:21)(cid:19)3200
Securities registered pursuant to Section 12(b) of the Act(cid:25)
(cid:44)itle of each class
(cid:44)rading symbol(s)
Ordinary Shares(cid:11) par value $0.01 per share
1.125(cid:4) (cid:34)uaranteed Senior (cid:41)otes (cid:31)ue 2027
A(cid:40)C(cid:45)
A(cid:48)(cid:38)F(cid:14)27
(cid:38)ame of each e(cid:74)change
on which registered
(cid:41)e(cid:76) (cid:52)or(cid:64) Stoc(cid:64) E(cid:77)change
(cid:41)e(cid:76) (cid:52)or(cid:64) Stoc(cid:64) E(cid:77)change
Securities registered pursuant to section 12(g) of the Act(cid:25) (cid:38)one
Indicate by chec(cid:64) mar(cid:64) if the (cid:45)egistrant is a (cid:76)ell(cid:12)(cid:64)no(cid:76)n seasoned issuer(cid:11) as defined in (cid:45)ule 405 of the Securities Act.
(cid:52)es ☒ (cid:41)o ☐
Amcor Annual Report 2022
1
Form 10-K
2
Indicate by chec(cid:64) mar(cid:64) if the (cid:45)egistrant is not required to file reports pursuant to Section 13 or Section 15(d) of the
Act. (cid:52)es ☐ (cid:41)o ☒
Indicate by chec(cid:64) mar(cid:64) (cid:76)hether the registrant(cid:25) (1) has filed all reports required to be filed by Section 13 or 15(d) of the
Securities E(cid:77)change Act of 1(cid:24)34 during the preceding 12 months (or for such shorter period that the registrant (cid:76)as required to
file such reports)(cid:11) and (2) has been sub(cid:63)ect to such filing requirements for the past (cid:24)0 days. (cid:52)es ☒ (cid:41)o ☐
Indicate by chec(cid:64) mar(cid:64) (cid:76)hether the registrant has submitted electronically every Interactive (cid:31)ata File required to be
submitted pursuant to (cid:45)ule 405 of (cid:45)egulation S(cid:12)(cid:47) ((cid:81)232.405 of this chapter) during the preceding 12 months (or for such
shorter period that the registrant (cid:76)as required to submit such files). (cid:52)es ☒ (cid:41)o ☐
Indicate by chec(cid:64) mar(cid:64) (cid:76)hether the registrant is a large accelerated filer(cid:11) an accelerated filer(cid:11) a non(cid:12)accelerated filer(cid:11) a
smaller reporting company(cid:11) or an emerging gro(cid:76)th company. See the definitions of "large accelerated filer(cid:11)" "accelerated filer(cid:11)"
"smaller reporting company(cid:11)" and "emerging gro(cid:76)th company" in (cid:45)ule 12b(cid:12)2 of the E(cid:77)change Act. (Chec(cid:64) one)(cid:25)
Large Accelerated Filer
Accelerated Filer
(cid:41)on(cid:12)Accelerated Filer
☒
☐
☐
Smaller (cid:45)eporting Company
Emerging (cid:34)ro(cid:76)th Company
☐
☐
If an emerging gro(cid:76)th company(cid:11) indicate by chec(cid:64) mar(cid:64) if the registrant has elected not to use the e(cid:77)tended transition
period for complying (cid:76)ith any ne(cid:76) or revised financial accounting standards provided pursuant to Section 13(a) of the
E(cid:77)change Act. ☐
Indicate by chec(cid:64) mar(cid:64) (cid:76)hether the registrant has filed a report on and attestation to its management(cid:89)s assessment of
the effectiveness of its internal control over financial reporting under Section 404(b) of the Sarbanes(cid:12)O(cid:77)ley Act (15 (cid:48).S.C.
7262(b)) by the registered public accounting firm that prepared or issued its audit report. ☒
Indicate by chec(cid:64) mar(cid:64) (cid:76)hether the registrant is a shell company (as defined in (cid:45)ule 12b(cid:12)2 of the E(cid:77)change Act). (cid:52)es
☐ (cid:41)o ☒
(cid:47)he aggregate mar(cid:64)et value of the ordinary shares held by non(cid:12)affiliates of the registrant(cid:11) computed by reference to the
closing price of such shares as of the last business day of the registrant(cid:89)s most recently completed second quarter(cid:11) (cid:76)as
$18.1 billion.
As of August 16(cid:11) 2022(cid:11) the (cid:45)egistrant had 1(cid:11)48(cid:24)(cid:11)01(cid:24)(cid:11)556 shares issued and outstanding.
DOC(cid:45)(cid:37)E(cid:38)(cid:44)S I(cid:38)CORPORA(cid:44)ED BY REFERE(cid:38)CE
BS30 (cid:22)(cid:48)P
((cid:53)ip Code)
Certain information required for (cid:43)art III of this Annual (cid:45)eport on Form 10(cid:12)(cid:38) is incorporated by reference to the
Amcor plc definitive (cid:43)ro(cid:77)y Statement for its 2022 Annual Shareholder (cid:40)eeting(cid:11) (cid:76)hich (cid:76)ill be filed (cid:76)ith the Securities and
E(cid:77)change Commission pursuant to (cid:45)egulation 14A of the Securities E(cid:77)change Act of 1(cid:24)34(cid:11) as amended(cid:11) (cid:76)ithin 120 days of
Amcor plc(cid:89)s fiscal year end.
SEC(cid:45)RI(cid:44)IES A(cid:38)D E(cid:48)C(cid:32)A(cid:38)(cid:31)E CO(cid:37)(cid:37)ISSIO(cid:38)
(cid:45)(cid:38)I(cid:44)ED S(cid:44)A(cid:44)ES
Washington, D(cid:12)C(cid:12) 20(cid:19)(cid:18)(cid:23)
FOR(cid:37) 10-(cid:35)
For the fiscal year ended June 30, 2022
or
☒ A(cid:38)(cid:38)(cid:45)AL REPOR(cid:44) P(cid:45)RS(cid:45)A(cid:38)(cid:44) (cid:44)O SEC(cid:44)IO(cid:38) 13 OR 1(cid:19)(d) OF (cid:44)(cid:32)E SEC(cid:45)RI(cid:44)IES E(cid:48)C(cid:32)A(cid:38)(cid:31)E AC(cid:44) OF 1(cid:23)3(cid:18)
☐ (cid:44)RA(cid:38)SI(cid:44)IO(cid:38) REPOR(cid:44) P(cid:45)RS(cid:45)A(cid:38)(cid:44) (cid:44)O SEC(cid:44)IO(cid:38) 13 OR 1(cid:19)(d) OF (cid:44)(cid:32)E SEC(cid:45)RI(cid:44)IES E(cid:48)C(cid:32)A(cid:38)(cid:31)E AC(cid:44) OF 1(cid:23)3(cid:18)
For the transition period from (cid:50)(cid:50)(cid:50)(cid:50)(cid:50)(cid:50)(cid:50)(cid:50)(cid:50)(cid:50) to (cid:50)(cid:50)(cid:50)(cid:50)(cid:50)(cid:50)(cid:50)(cid:50)(cid:50)(cid:50)
Commission File (cid:38)umber 001-3(cid:22)(cid:23)32
A(cid:37)COR PLC
(E(cid:77)act name of registrant as specified in its charter)
(State or other (cid:63)urisdiction of incorporation or organi(cid:79)ation)
(I.(cid:45).S. Employer Identification (cid:41)o.)
Jersey
(cid:23)(cid:22)-1(cid:18)(cid:19)(cid:19)3(cid:20)(cid:21)
(cid:22)3 (cid:44)ower Road (cid:38)orth
Warmley, Bristol
(cid:45)nited (cid:35)ingdom
(Address of principal e(cid:77)ecutive offices)
(cid:45)egistrant(cid:89)s telephone number(cid:11) including area code(cid:25) (cid:9)(cid:18)(cid:18) 11(cid:21) (cid:23)(cid:21)(cid:19)3200
Securities registered pursuant to Section 12(b) of the Act(cid:25)
(cid:44)itle of each class
(cid:44)rading symbol(s)
Ordinary Shares(cid:11) par value $0.01 per share
1.125(cid:4) (cid:34)uaranteed Senior (cid:41)otes (cid:31)ue 2027
A(cid:40)C(cid:45)
A(cid:48)(cid:38)F(cid:14)27
(cid:38)ame of each e(cid:74)change
on which registered
(cid:41)e(cid:76) (cid:52)or(cid:64) Stoc(cid:64) E(cid:77)change
(cid:41)e(cid:76) (cid:52)or(cid:64) Stoc(cid:64) E(cid:77)change
Securities registered pursuant to section 12(g) of the Act(cid:25) (cid:38)one
Indicate by chec(cid:64) mar(cid:64) if the (cid:45)egistrant is a (cid:76)ell(cid:12)(cid:64)no(cid:76)n seasoned issuer(cid:11) as defined in (cid:45)ule 405 of the Securities Act.
(cid:52)es ☒ (cid:41)o ☐
Amcor Annual Report 2022
Form 10-K
3
5
13
24
24
24
24
25
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/
Amcor Annual Report 2022
4
Forward-Loo(cid:61)ing Statements
(cid:48)nless other(cid:76)ise indicated(cid:11) references to "Amcor(cid:11)" the "Company(cid:11)" "(cid:76)e(cid:11)" "our(cid:11)" and "us" in this Annual (cid:45)eport on
Form 10(cid:12)(cid:38) refer to Amcor plc and its consolidated subsidiaries.
(cid:47)his Annual (cid:45)eport on Form 10(cid:12)(cid:38) contains certain statements that are "for(cid:76)ard(cid:12)loo(cid:64)ing statements" (cid:76)ithin the
meaning of the safe harbor provisions of the (cid:48).S. (cid:43)rivate Securities Litigation (cid:45)eform Act of 1(cid:24)(cid:24)5. For(cid:76)ard(cid:12)loo(cid:64)ing statements
are generally identified (cid:76)ith (cid:76)ords li(cid:64)e "believe(cid:11)" "e(cid:77)pect(cid:11)" "target(cid:11)" "pro(cid:63)ect(cid:11)" "may(cid:11)" "could(cid:11)" "(cid:76)ould(cid:11)" "appro(cid:77)imately(cid:11)"
"possible(cid:11)" "(cid:76)ill(cid:11)" "should(cid:11)" "intend(cid:11)" "plan(cid:11)" "anticipate(cid:11)" "commit(cid:11)" "estimate(cid:11)" "potential(cid:11)" "ambitions(cid:11)" "outloo(cid:64)(cid:11)" or
"continue(cid:11)" the negative of these (cid:76)ords(cid:11) other terms of similar meaning(cid:11) or the use of future dates. Such statements are based on
the current e(cid:77)pectations of the management of Amcor and are qualified by the inherent ris(cid:64)s and uncertainties surrounding
future e(cid:77)pectations generally. Actual results could differ materially from those currently anticipated due to a number of ris(cid:64)s
and uncertainties. (cid:41)one of Amcor or any of its respective directors(cid:11) e(cid:77)ecutive officers(cid:11) or advisors(cid:11) provide any representation(cid:11)
assurance(cid:11) or guarantee that the occurrence of the events e(cid:77)pressed or implied in any for(cid:76)ard(cid:12)loo(cid:64)ing statements (cid:76)ill actually
occur. (cid:45)is(cid:64)s and uncertainties that could cause actual results to differ from e(cid:77)pectations include(cid:11) but are not limited to(cid:25)
(cid:82)
(cid:82)
(cid:82)
(cid:82)
(cid:82)
(cid:82)
(cid:82)
(cid:82)
(cid:82)
(cid:82)
(cid:82)
(cid:82)
(cid:82)
(cid:82)
(cid:82)
(cid:82)
(cid:82)
(cid:82)
(cid:82)
(cid:82)
(cid:82)
(cid:82)
(cid:82)
(cid:82)
(cid:82)
(cid:82)
or acquisitions(cid:26)
affect our business(cid:26)
of economic volatility(cid:26)
Changes in consumer demand patterns and customer requirements in numerous industries(cid:26)
the loss of (cid:64)ey customers(cid:11) a reduction in their production requirements(cid:11) or consolidation among (cid:64)ey customers(cid:26)
significant competition in the industries and regions in (cid:76)hich (cid:76)e operate(cid:26)
the inability to e(cid:77)pand our current business effectively through either organic gro(cid:76)th(cid:11) including by product innovation(cid:11)
challenging current and future global economic conditions(cid:11) including inflation and supply chain disruptions(cid:26)
impact of operating internationally(cid:11) including negative impacts from the (cid:45)ussia(cid:12)(cid:48)(cid:64)raine conflict(cid:26)
price fluctuations or shortages in the availability of ra(cid:76) materials(cid:11) energy and other inputs(cid:11) (cid:76)hich could adversely
production(cid:11) supply(cid:11) and other commercial ris(cid:64)s(cid:11) including counterparty credit ris(cid:64)s(cid:11) (cid:76)hich may be e(cid:77)acerbated in times
global health outbrea(cid:64)s(cid:11) including the Coronavirus pandemic ("CO(cid:49)I(cid:31)(cid:12)1(cid:24)")(cid:26)
an inability to attract and retain (cid:64)ey personnel(cid:26)
costs and liabilities related to current and future environment(cid:11) health and safety la(cid:76)s and regulations(cid:26)
labor disputes(cid:26)
ris(cid:64)s related to climate change(cid:26)
failures or disruptions in information technology systems(cid:26)
cybersecurity ris(cid:64)s(cid:11) (cid:76)hich could disrupt our operations or ris(cid:64) of loss of our sensitive business information(cid:26)
a significant increase in our indebtedness or a do(cid:76)ngrade in our credit rating could reduce our operating fle(cid:77)ibility and
increase our borro(cid:76)ing costs and negatively affect our financial condition and results of operations(cid:26)
rising interest rates that increase our borro(cid:76)ing costs on our variable rate indebtedness and could have other negative
foreign e(cid:77)change rate ris(cid:64)(cid:26)
impacts(cid:26)
a significant (cid:76)rite(cid:12)do(cid:76)n of good(cid:76)ill and(cid:14)or other intangible assets(cid:26)
failure to maintain an effective system of internal control over financial reporting(cid:26)
an inability of our insurance policies(cid:11) including our use of a captive insurance company(cid:11) to provide adequate protection
against all of the ris(cid:64)s (cid:76)e face(cid:26)
an inability to defend our intellectual property rights or intellectual property infringement claims against us(cid:26)
litigation(cid:11) including product liability claims(cid:11) or regulatory developments(cid:26)
increasing scrutiny and changing e(cid:77)pectations (cid:76)ith respect to our Environmental(cid:11) Social(cid:11) and (cid:34)overnance ("ES(cid:34)")
practices resulting in additional costs or e(cid:77)posure to additional ris(cid:64)s(cid:26)
changing government regulations in environmental(cid:11) health(cid:11) and safety matters(cid:26) and
changes in ta(cid:77) la(cid:76)s or changes in our geographic mi(cid:77) of earnings.
Additional factors that could cause actual results to differ from those e(cid:77)pected are discussed in this Annual (cid:45)eport on
Form 10(cid:12)(cid:38)(cid:11) including in the sections entitled "Item 1A (cid:12) (cid:45)is(cid:64) Factors" and "Item 7 (cid:12) (cid:40)anagement(cid:89)s (cid:31)iscussion and Analysis of
Financial Condition and (cid:45)esults of Operations(cid:11)" and in Amcor(cid:89)s subsequent filings (cid:76)ith the Securities and E(cid:77)change
For(cid:76)ard(cid:12)loo(cid:64)ing statements made in this Annual (cid:45)eport on Form 10(cid:12)(cid:38) relate only to events as of the date on (cid:76)hich
the statements are made. Amcor assumes no obligation(cid:11) and disclaims any obligation(cid:11) to update the information contained in
this report. All for(cid:76)ard(cid:12)loo(cid:64)ing statements in this Annual (cid:45)eport on Form 10(cid:12)(cid:38) are qualified in their entirety by this cautionary
Commission.
statement.
5
13
24
24
24
24
25
28
45
47
47
49
50
51
52
53
54
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............................................................................................................................... 107
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.......................................................... 107
...................... 107
.............................................................................................................................. 109
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.... 109
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3
Form 10-K
4
Forward-Loo(cid:61)ing Statements
(cid:48)nless other(cid:76)ise indicated(cid:11) references to "Amcor(cid:11)" the "Company(cid:11)" "(cid:76)e(cid:11)" "our(cid:11)" and "us" in this Annual (cid:45)eport on
Form 10(cid:12)(cid:38) refer to Amcor plc and its consolidated subsidiaries.
(cid:47)his Annual (cid:45)eport on Form 10(cid:12)(cid:38) contains certain statements that are "for(cid:76)ard(cid:12)loo(cid:64)ing statements" (cid:76)ithin the
meaning of the safe harbor provisions of the (cid:48).S. (cid:43)rivate Securities Litigation (cid:45)eform Act of 1(cid:24)(cid:24)5. For(cid:76)ard(cid:12)loo(cid:64)ing statements
are generally identified (cid:76)ith (cid:76)ords li(cid:64)e "believe(cid:11)" "e(cid:77)pect(cid:11)" "target(cid:11)" "pro(cid:63)ect(cid:11)" "may(cid:11)" "could(cid:11)" "(cid:76)ould(cid:11)" "appro(cid:77)imately(cid:11)"
"possible(cid:11)" "(cid:76)ill(cid:11)" "should(cid:11)" "intend(cid:11)" "plan(cid:11)" "anticipate(cid:11)" "commit(cid:11)" "estimate(cid:11)" "potential(cid:11)" "ambitions(cid:11)" "outloo(cid:64)(cid:11)" or
"continue(cid:11)" the negative of these (cid:76)ords(cid:11) other terms of similar meaning(cid:11) or the use of future dates. Such statements are based on
the current e(cid:77)pectations of the management of Amcor and are qualified by the inherent ris(cid:64)s and uncertainties surrounding
future e(cid:77)pectations generally. Actual results could differ materially from those currently anticipated due to a number of ris(cid:64)s
and uncertainties. (cid:41)one of Amcor or any of its respective directors(cid:11) e(cid:77)ecutive officers(cid:11) or advisors(cid:11) provide any representation(cid:11)
assurance(cid:11) or guarantee that the occurrence of the events e(cid:77)pressed or implied in any for(cid:76)ard(cid:12)loo(cid:64)ing statements (cid:76)ill actually
occur. (cid:45)is(cid:64)s and uncertainties that could cause actual results to differ from e(cid:77)pectations include(cid:11) but are not limited to(cid:25)
(cid:82)
(cid:82)
(cid:82)
(cid:82)
(cid:82)
(cid:82)
(cid:82)
(cid:82)
(cid:82)
(cid:82)
(cid:82)
(cid:82)
(cid:82)
(cid:82)
(cid:82)
(cid:82)
(cid:82)
(cid:82)
(cid:82)
(cid:82)
(cid:82)
(cid:82)
(cid:82)
(cid:82)
(cid:82)
(cid:82)
Changes in consumer demand patterns and customer requirements in numerous industries(cid:26)
the loss of (cid:64)ey customers(cid:11) a reduction in their production requirements(cid:11) or consolidation among (cid:64)ey customers(cid:26)
significant competition in the industries and regions in (cid:76)hich (cid:76)e operate(cid:26)
the inability to e(cid:77)pand our current business effectively through either organic gro(cid:76)th(cid:11) including by product innovation(cid:11)
or acquisitions(cid:26)
challenging current and future global economic conditions(cid:11) including inflation and supply chain disruptions(cid:26)
impact of operating internationally(cid:11) including negative impacts from the (cid:45)ussia(cid:12)(cid:48)(cid:64)raine conflict(cid:26)
price fluctuations or shortages in the availability of ra(cid:76) materials(cid:11) energy and other inputs(cid:11) (cid:76)hich could adversely
affect our business(cid:26)
production(cid:11) supply(cid:11) and other commercial ris(cid:64)s(cid:11) including counterparty credit ris(cid:64)s(cid:11) (cid:76)hich may be e(cid:77)acerbated in times
of economic volatility(cid:26)
global health outbrea(cid:64)s(cid:11) including the Coronavirus pandemic ("CO(cid:49)I(cid:31)(cid:12)1(cid:24)")(cid:26)
an inability to attract and retain (cid:64)ey personnel(cid:26)
costs and liabilities related to current and future environment(cid:11) health and safety la(cid:76)s and regulations(cid:26)
labor disputes(cid:26)
ris(cid:64)s related to climate change(cid:26)
failures or disruptions in information technology systems(cid:26)
cybersecurity ris(cid:64)s(cid:11) (cid:76)hich could disrupt our operations or ris(cid:64) of loss of our sensitive business information(cid:26)
a significant increase in our indebtedness or a do(cid:76)ngrade in our credit rating could reduce our operating fle(cid:77)ibility and
increase our borro(cid:76)ing costs and negatively affect our financial condition and results of operations(cid:26)
foreign e(cid:77)change rate ris(cid:64)(cid:26)
rising interest rates that increase our borro(cid:76)ing costs on our variable rate indebtedness and could have other negative
impacts(cid:26)
a significant (cid:76)rite(cid:12)do(cid:76)n of good(cid:76)ill and(cid:14)or other intangible assets(cid:26)
failure to maintain an effective system of internal control over financial reporting(cid:26)
an inability of our insurance policies(cid:11) including our use of a captive insurance company(cid:11) to provide adequate protection
against all of the ris(cid:64)s (cid:76)e face(cid:26)
an inability to defend our intellectual property rights or intellectual property infringement claims against us(cid:26)
litigation(cid:11) including product liability claims(cid:11) or regulatory developments(cid:26)
increasing scrutiny and changing e(cid:77)pectations (cid:76)ith respect to our Environmental(cid:11) Social(cid:11) and (cid:34)overnance ("ES(cid:34)")
practices resulting in additional costs or e(cid:77)posure to additional ris(cid:64)s(cid:26)
changing government regulations in environmental(cid:11) health(cid:11) and safety matters(cid:26) and
changes in ta(cid:77) la(cid:76)s or changes in our geographic mi(cid:77) of earnings.
Additional factors that could cause actual results to differ from those e(cid:77)pected are discussed in this Annual (cid:45)eport on
Form 10(cid:12)(cid:38)(cid:11) including in the sections entitled "Item 1A (cid:12) (cid:45)is(cid:64) Factors" and "Item 7 (cid:12) (cid:40)anagement(cid:89)s (cid:31)iscussion and Analysis of
Financial Condition and (cid:45)esults of Operations(cid:11)" and in Amcor(cid:89)s subsequent filings (cid:76)ith the Securities and E(cid:77)change
Commission.
For(cid:76)ard(cid:12)loo(cid:64)ing statements made in this Annual (cid:45)eport on Form 10(cid:12)(cid:38) relate only to events as of the date on (cid:76)hich
the statements are made. Amcor assumes no obligation(cid:11) and disclaims any obligation(cid:11) to update the information contained in
this report. All for(cid:76)ard(cid:12)loo(cid:64)ing statements in this Annual (cid:45)eport on Form 10(cid:12)(cid:38) are qualified in their entirety by this cautionary
statement.
/
4
Amcor Annual Report 2022
(cid:47)hese criteria have led us to the focused portfolio of strong businesses (cid:76)e have today across(cid:25) fle(cid:77)ible and rigid
pac(cid:64)aging(cid:11) specialty cartons(cid:11) and closures.
(cid:18)iffere(cid:50)(cid:56)ia(cid:56)e(cid:40) (cid:39)a(cid:52)a(cid:38)i(cid:48)i(cid:56)ies
(cid:2)(cid:47)he Amcor (cid:50)ay" describes the capabilities deployed consistently across Amcor that enable us to get leverage across
our portfolio(cid:25) (cid:47)alent(cid:11) Commercial E(cid:77)cellence(cid:11) Operational Leadership(cid:11) Innovation(cid:11) and Cash and Capital (cid:31)iscipline. Our values
of Safety(cid:11) Integrity(cid:11) Collaboration(cid:11) Accountability(cid:11) and (cid:45)esults and Outperformance guide our behavior(cid:11) driving our (cid:76)inning
aspiration to be (cid:47)(cid:35)E leading global pac(cid:64)aging company.
S(cid:44)are(cid:44)o(cid:48)(cid:40)er (cid:58)a(cid:48)(cid:57)e (cid:39)rea(cid:56)io(cid:50)
(cid:47)hrough our portfolio of focused businesses and differentiated capabilities(cid:11) (cid:76)e generate strong cash flo(cid:76) and redeploy
cash to consistently create superior value for shareholders. (cid:47)he nature of our consumer and healthcare end mar(cid:64)ets means that
year(cid:12)to(cid:12)year volatility should be relatively lo(cid:76)(cid:11) measured on a constant currency basis. Over time(cid:11) value creation has been
strong and consistent and has reflected a combination of dividends(cid:11) organic gro(cid:76)th in the base business(cid:11) and using free cash
flo(cid:76) to pursue targeted acquisitions and(cid:14)or returning cash to shareholders via share buybac(cid:64)s.
Form 10-K
5
PAR(cid:44) I
Item 1(cid:12) - Business
(cid:44)he Company
Amcor plc (A(cid:45)B(cid:41) 630 385 278) is a public limited company incorporated under the La(cid:76)s of the Baili(cid:76)ic(cid:64) of (cid:37)ersey.
Our history dates bac(cid:64) more than 150 years(cid:11) (cid:76)ith origins in both Australia and the (cid:48)SA. (cid:47)oday(cid:11) (cid:76)e are a global leader in
developing and producing responsible pac(cid:64)aging for food(cid:11) beverage(cid:11) pharmaceutical(cid:11) medical(cid:11) home and personal(cid:12)care(cid:11) and
other products. Our innovation e(cid:77)cellence and global pac(cid:64)aging e(cid:77)pertise enables us to solve pac(cid:64)aging challenges around the
(cid:76)orld every day(cid:11) producing pac(cid:64)aging that is more functional(cid:11) appealing(cid:11) and cost effective for our customers and their
consumers and importantly(cid:11) more sustainable for the environment.
S(cid:57)s(cid:56)ai(cid:50)a(cid:38)i(cid:48)i(cid:56)(cid:61)
Sustainability is central to our business and one of our most e(cid:77)citing opportunities for gro(cid:76)th. (cid:50)or(cid:64)ing daily to embed
sustainability deeper into everything (cid:76)e do(cid:11) Amcor has been a leader in the industry in promoting sustainability. (cid:50)e aspire to
improve the quality of lives(cid:11) protect ecosystems(cid:11) and preserve natural resources for future generations by offering a unique
range of responsible pac(cid:64)aging solutions(cid:11) leveraging our global scale(cid:11) reach(cid:11) and e(cid:77)pertise to meet our customers(cid:89) gro(cid:76)ing
sustainability e(cid:77)pectations. In (cid:37)anuary 2018(cid:11) (cid:76)e became the (cid:76)orld(cid:89)s first pac(cid:64)aging company to pledge that all our pac(cid:64)aging
(cid:76)ould be designed to be recycled(cid:11) compostable(cid:11) or reusable by 2025 and also committed to increasing the amount of recycled
content (cid:76)e use. (cid:50)e are delivering against these commitments and continue to lead in the development of a responsible
pac(cid:64)aging value chain through our innovations and partnerships. (cid:50)e have identified a clear path to meeting our sustainability
ambitions and those of our customers by focusing on the three elements of responsible pac(cid:64)aging (cid:84) product innovation(cid:11)
consumer participation(cid:11) and infrastructure development.
(cid:18)iffere(cid:50)(cid:56)ia(cid:56)e(cid:40) So(cid:48)(cid:57)(cid:56)io(cid:50)s
Our product portfolio is diverse and dynamic due to our constant innovation and close partnerships (cid:76)ith our
customers. Behind every one of our products stands a unique combination of technical (cid:64)no(cid:76)(cid:12)ho(cid:76)(cid:11) business e(cid:77)perience(cid:11) and
e(cid:77)pertise. (cid:50)e (cid:76)or(cid:64) closely (cid:76)ith our customers to identify feasible(cid:11) high(cid:12)performance(cid:11) responsible pac(cid:64)aging solutions based on
their unique needs. (cid:50)here solutions do not currently e(cid:77)ist(cid:11) (cid:76)e (cid:76)or(cid:64) to innovate ne(cid:76) ones. (cid:50)e invest appro(cid:77)imately $100
million every year in our industry(cid:12)leading research and development capabilities(cid:11) bringing together the best in pac(cid:64)aging
design(cid:11) science(cid:11) manufacturing(cid:11) and people.
(cid:19)x(cid:52)er(cid:56)ise a(cid:39)ross (cid:30)a(cid:39)(cid:47)a(cid:43)i(cid:50)(cid:43) (cid:27)a(cid:56)eria(cid:48)s
(cid:50)e believe that (cid:76)e are uniquely positioned to offer a variety of pac(cid:64)aging solutions (cid:76)ith a (cid:76)ide(cid:11) differentiated
portfolio of products. Our pac(cid:64)aging e(cid:77)pertise covers all main pac(cid:64)aging materials including paper(cid:11) metal(cid:11) plastic(cid:11) recycled(cid:11) and
bio(cid:12)based materials and the sustainable use of recyclable plastics. Our e(cid:77)pertise and trac(cid:64) record translate across many
innovative solutions that customers can e(cid:77)plore (cid:76)ith ease and convenience to meet their gro(cid:76)ing pac(cid:64)aging needs(cid:11) (cid:76)hile
improving environmental impact.
Business Strategy
S(cid:56)ra(cid:56)e(cid:43)(cid:61)
Our business strategy consists of three components(cid:25) a focused portfolio(cid:11) differentiated capabilities(cid:11) and our aspiration
to be (cid:47)(cid:35)E leading global pac(cid:64)aging company. (cid:47)o fulfill our aspiration(cid:11) (cid:76)e are determined to (cid:76)in for our customers(cid:11) employees(cid:11)
shareholders(cid:11) and the environment.
(cid:20)o(cid:39)(cid:57)se(cid:40) (cid:52)or(cid:56)fo(cid:48)io
Our portfolio of businesses share certain important characteristics(cid:25)
• A focus on primary pac(cid:64)aging for fast(cid:12)moving consumer goods(cid:11)
•
•
• multiple paths for us to (cid:76)in through our leadership position(cid:11) scale(cid:11) and ability to differentiate our product offering
good industry structure(cid:11)
attractive relative gro(cid:76)th(cid:11) and
through innovation.
5
Amcor Annual Report 2022
6
5
Form 10-K
6
(cid:47)hese criteria have led us to the focused portfolio of strong businesses (cid:76)e have today across(cid:25) fle(cid:77)ible and rigid
pac(cid:64)aging(cid:11) specialty cartons(cid:11) and closures.
(cid:18)iffere(cid:50)(cid:56)ia(cid:56)e(cid:40) (cid:39)a(cid:52)a(cid:38)i(cid:48)i(cid:56)ies
(cid:2)(cid:47)he Amcor (cid:50)ay" describes the capabilities deployed consistently across Amcor that enable us to get leverage across
our portfolio(cid:25) (cid:47)alent(cid:11) Commercial E(cid:77)cellence(cid:11) Operational Leadership(cid:11) Innovation(cid:11) and Cash and Capital (cid:31)iscipline. Our values
of Safety(cid:11) Integrity(cid:11) Collaboration(cid:11) Accountability(cid:11) and (cid:45)esults and Outperformance guide our behavior(cid:11) driving our (cid:76)inning
aspiration to be (cid:47)(cid:35)E leading global pac(cid:64)aging company.
S(cid:44)are(cid:44)o(cid:48)(cid:40)er (cid:58)a(cid:48)(cid:57)e (cid:39)rea(cid:56)io(cid:50)
(cid:47)hrough our portfolio of focused businesses and differentiated capabilities(cid:11) (cid:76)e generate strong cash flo(cid:76) and redeploy
cash to consistently create superior value for shareholders. (cid:47)he nature of our consumer and healthcare end mar(cid:64)ets means that
year(cid:12)to(cid:12)year volatility should be relatively lo(cid:76)(cid:11) measured on a constant currency basis. Over time(cid:11) value creation has been
strong and consistent and has reflected a combination of dividends(cid:11) organic gro(cid:76)th in the base business(cid:11) and using free cash
flo(cid:76) to pursue targeted acquisitions and(cid:14)or returning cash to shareholders via share buybac(cid:64)s.
PAR(cid:44) I
Item 1(cid:12) - Business
(cid:44)he Company
Amcor plc (A(cid:45)B(cid:41) 630 385 278) is a public limited company incorporated under the La(cid:76)s of the Baili(cid:76)ic(cid:64) of (cid:37)ersey.
Our history dates bac(cid:64) more than 150 years(cid:11) (cid:76)ith origins in both Australia and the (cid:48)SA. (cid:47)oday(cid:11) (cid:76)e are a global leader in
developing and producing responsible pac(cid:64)aging for food(cid:11) beverage(cid:11) pharmaceutical(cid:11) medical(cid:11) home and personal(cid:12)care(cid:11) and
other products. Our innovation e(cid:77)cellence and global pac(cid:64)aging e(cid:77)pertise enables us to solve pac(cid:64)aging challenges around the
(cid:76)orld every day(cid:11) producing pac(cid:64)aging that is more functional(cid:11) appealing(cid:11) and cost effective for our customers and their
consumers and importantly(cid:11) more sustainable for the environment.
S(cid:57)s(cid:56)ai(cid:50)a(cid:38)i(cid:48)i(cid:56)(cid:61)
Sustainability is central to our business and one of our most e(cid:77)citing opportunities for gro(cid:76)th. (cid:50)or(cid:64)ing daily to embed
sustainability deeper into everything (cid:76)e do(cid:11) Amcor has been a leader in the industry in promoting sustainability. (cid:50)e aspire to
improve the quality of lives(cid:11) protect ecosystems(cid:11) and preserve natural resources for future generations by offering a unique
range of responsible pac(cid:64)aging solutions(cid:11) leveraging our global scale(cid:11) reach(cid:11) and e(cid:77)pertise to meet our customers(cid:89) gro(cid:76)ing
sustainability e(cid:77)pectations. In (cid:37)anuary 2018(cid:11) (cid:76)e became the (cid:76)orld(cid:89)s first pac(cid:64)aging company to pledge that all our pac(cid:64)aging
(cid:76)ould be designed to be recycled(cid:11) compostable(cid:11) or reusable by 2025 and also committed to increasing the amount of recycled
content (cid:76)e use. (cid:50)e are delivering against these commitments and continue to lead in the development of a responsible
pac(cid:64)aging value chain through our innovations and partnerships. (cid:50)e have identified a clear path to meeting our sustainability
ambitions and those of our customers by focusing on the three elements of responsible pac(cid:64)aging (cid:84) product innovation(cid:11)
consumer participation(cid:11) and infrastructure development.
(cid:18)iffere(cid:50)(cid:56)ia(cid:56)e(cid:40) So(cid:48)(cid:57)(cid:56)io(cid:50)s
Our product portfolio is diverse and dynamic due to our constant innovation and close partnerships (cid:76)ith our
customers. Behind every one of our products stands a unique combination of technical (cid:64)no(cid:76)(cid:12)ho(cid:76)(cid:11) business e(cid:77)perience(cid:11) and
e(cid:77)pertise. (cid:50)e (cid:76)or(cid:64) closely (cid:76)ith our customers to identify feasible(cid:11) high(cid:12)performance(cid:11) responsible pac(cid:64)aging solutions based on
their unique needs. (cid:50)here solutions do not currently e(cid:77)ist(cid:11) (cid:76)e (cid:76)or(cid:64) to innovate ne(cid:76) ones. (cid:50)e invest appro(cid:77)imately $100
million every year in our industry(cid:12)leading research and development capabilities(cid:11) bringing together the best in pac(cid:64)aging
design(cid:11) science(cid:11) manufacturing(cid:11) and people.
(cid:19)x(cid:52)er(cid:56)ise a(cid:39)ross (cid:30)a(cid:39)(cid:47)a(cid:43)i(cid:50)(cid:43) (cid:27)a(cid:56)eria(cid:48)s
(cid:50)e believe that (cid:76)e are uniquely positioned to offer a variety of pac(cid:64)aging solutions (cid:76)ith a (cid:76)ide(cid:11) differentiated
portfolio of products. Our pac(cid:64)aging e(cid:77)pertise covers all main pac(cid:64)aging materials including paper(cid:11) metal(cid:11) plastic(cid:11) recycled(cid:11) and
bio(cid:12)based materials and the sustainable use of recyclable plastics. Our e(cid:77)pertise and trac(cid:64) record translate across many
innovative solutions that customers can e(cid:77)plore (cid:76)ith ease and convenience to meet their gro(cid:76)ing pac(cid:64)aging needs(cid:11) (cid:76)hile
improving environmental impact.
Business Strategy
S(cid:56)ra(cid:56)e(cid:43)(cid:61)
shareholders(cid:11) and the environment.
(cid:20)o(cid:39)(cid:57)se(cid:40) (cid:52)or(cid:56)fo(cid:48)io
Our business strategy consists of three components(cid:25) a focused portfolio(cid:11) differentiated capabilities(cid:11) and our aspiration
to be (cid:47)(cid:35)E leading global pac(cid:64)aging company. (cid:47)o fulfill our aspiration(cid:11) (cid:76)e are determined to (cid:76)in for our customers(cid:11) employees(cid:11)
Our portfolio of businesses share certain important characteristics(cid:25)
• A focus on primary pac(cid:64)aging for fast(cid:12)moving consumer goods(cid:11)
•
•
good industry structure(cid:11)
attractive relative gro(cid:76)th(cid:11) and
through innovation.
• multiple paths for us to (cid:76)in through our leadership position(cid:11) scale(cid:11) and ability to differentiate our product offering
5
6
Amcor Annual Report 2022
Form 10-K
7
Segment Information
Intellectual Property
Accounting Standards Codification ("ASC") 280(cid:11) "Segment (cid:45)eporting(cid:11)" establishes the standards for reporting
information about segments in financial statements. In applying the criteria set forth in ASC 280(cid:11) (cid:76)e have determined (cid:76)e have
t(cid:76)o reportable segments(cid:11) Fle(cid:77)ibles and (cid:45)igid (cid:43)ac(cid:64)aging. (cid:47)he reportable segments produce fle(cid:77)ible pac(cid:64)aging(cid:11) rigid pac(cid:64)aging(cid:11)
specialty cartons(cid:11) and closure products(cid:11) (cid:76)hich are sold to customers participating in a range of attractive end use areas
throughout Europe(cid:11) (cid:41)orth America(cid:11) Latin America(cid:11) Africa(cid:11) and the Asia (cid:43)acific regions. (cid:45)efer to (cid:41)ote 21(cid:11) "Segments(cid:11)" of the
notes to consolidated financial statements for financial information about reportable segments.
(cid:50)e are the o(cid:76)ner or licensee of more than a thousand (cid:48)nited States and other country patents and patent applications
that relate to our products(cid:11) manufacturing processes(cid:11) and equipment. (cid:50)e have a number of trademar(cid:64)s and trademar(cid:64)
registrations in the (cid:48)nited States and in other countries. (cid:50)e also (cid:64)eep certain technology and processes as trade secrets. Our
patents(cid:11) licenses(cid:11) and trademar(cid:64)s collectively provide a competitive advantage. (cid:35)o(cid:76)ever(cid:11) the loss of any single patent or license
alone (cid:76)ould not have a material adverse effect on our results of operations as a (cid:76)hole or those of our reportable segments.
(cid:43)atents(cid:11) patent applications(cid:11) and license agreements (cid:76)ill e(cid:77)pire or terminate over time by operation of la(cid:76)(cid:11) in accordance (cid:76)ith
(cid:20)(cid:48)exi(cid:38)(cid:48)es Se(cid:43)me(cid:50)(cid:56)
Our Fle(cid:77)ibles Segment develops and supplies fle(cid:77)ible pac(cid:64)aging globally. (cid:50)ith appro(cid:77)imately 37(cid:11)000 employees at
16(cid:24) significant manufacturing and support facilities in 3(cid:24) countries as of (cid:37)une 30(cid:11) 2022(cid:11) the Fle(cid:77)ibles Segment is one of the
(cid:76)orld(cid:6)s largest suppliers of plastic(cid:11) aluminum(cid:11) and fiber based fle(cid:77)ible pac(cid:64)aging. In fiscal year 2022(cid:11) Fle(cid:77)ibles accounted for
appro(cid:77)imately 77(cid:4) of consolidated net sales.
Ri(cid:43)i(cid:40) (cid:30)a(cid:39)(cid:47)a(cid:43)i(cid:50)(cid:43) Se(cid:43)me(cid:50)(cid:56)
Our (cid:45)igid (cid:43)ac(cid:64)aging Segment manufactures rigid pac(cid:64)aging containers and related products in the Americas. As of
(cid:37)une 30(cid:11) 2022(cid:11) the (cid:45)igid (cid:43)ac(cid:64)aging Segment employed appro(cid:77)imately 6(cid:11)000 employees at 52 significant manufacturing and
support facilities in 11 countries. In fiscal year 2022(cid:11) (cid:45)igid (cid:43)ac(cid:64)aging accounted for appro(cid:77)imately 23(cid:4) of consolidated net
sales.
(cid:37)ar(cid:61)eting, Distribution, and Competition
Our sales are made through a variety of distribution channels(cid:11) but primarily through our direct sales force. Sales offices
and plants are located throughout Europe(cid:11) (cid:41)orth America(cid:11) Latin America(cid:11) Africa(cid:11) and Asia(cid:12)(cid:43)acific regions to provide prompt
and economical service to thousands of customers. Our technically trained sales force is supported by product development
engineers(cid:11) design technicians(cid:11) field service technicians(cid:11) and customer service teams.
(cid:50)e did not have sales to a single customer that e(cid:77)ceeded 10(cid:4) of consolidated net sales in the last three fiscal years.
(cid:47)he ma(cid:63)or mar(cid:64)ets in (cid:76)hich (cid:76)e sell our products historically have been(cid:11) and continue to be(cid:11) highly competitive. Areas
of competition include service(cid:11) innovation(cid:11) quality(cid:11) and price. Competitors include Aptar(cid:34)roup(cid:11) Inc.(cid:11) Ball Corporation(cid:11) Berry
(cid:34)lobal (cid:34)roup(cid:11) Inc(cid:11) CCL Industries Inc.(cid:11) Cro(cid:76)n (cid:35)oldings(cid:11) Inc.(cid:11) (cid:34)raphic (cid:43)ac(cid:64)aging (cid:35)olding Company(cid:11) (cid:35)uhtama(cid:64)i Oy(cid:63)(cid:11)
International (cid:43)aper Company(cid:11) (cid:40)ayr(cid:12)(cid:40)elnhof (cid:38)arton A(cid:34)(cid:11) O(cid:12)I (cid:34)lass(cid:11) Inc.(cid:11) Sealed Air Corporation(cid:11) Silgan (cid:35)oldings Inc.(cid:11)
Sonoco (cid:43)roducts Company(cid:11) and (cid:50)est(cid:45)oc(cid:64) Company(cid:11) and a variety of privately held companies.
(cid:50)e consider ourselves to be a significant participant in the mar(cid:64)ets in (cid:76)hich (cid:76)e operate(cid:26) ho(cid:76)ever(cid:11) due to the diversity
of our business(cid:11) our precise competitive position in these mar(cid:64)ets is not reasonably determinable.
Bac(cid:61)log
(cid:50)or(cid:64)ing capital fluctuates throughout the year in relation to business volume and other mar(cid:64)etplace conditions. (cid:50)e
maintain inventory levels that provide a reasonable balance bet(cid:76)een obtaining ra(cid:76) materials at favorable prices and
maintaining adequate inventory levels to enable us to fulfill our commitment to promptly fill customer orders. (cid:40)anufacturing
bac(cid:64)logs are not a significant factor in the mar(cid:64)ets in (cid:76)hich (cid:76)e operate.
Raw (cid:37)aterials
(cid:43)olymer resins and films(cid:11) paper(cid:11) in(cid:64)s(cid:11) adhesives(cid:11) aluminum(cid:11) and chemicals constitute the ma(cid:63)or ra(cid:76) materials (cid:76)e use.
(cid:47)hese are purchased from a variety of global industry sources(cid:11) and (cid:76)e are not significantly dependent on any one supplier for
our ra(cid:76) materials. (cid:50)hile persistent industry(cid:12)(cid:76)ide shortages of certain ra(cid:76) materials have continued to occur since the second
half of fiscal 2021(cid:11) (cid:76)e have been able to manage supply disruptions (cid:76)ith no material impact by (cid:76)or(cid:64)ing closely (cid:76)ith our
suppliers and customers. Supply shortages can lead and have in the past led to increased ra(cid:76) material price volatility. Increases
in the price of ra(cid:76) materials are generally able to be passed on to customers through contractual price mechanisms over time
and other means. (cid:50)e e(cid:77)pect supply disruption and price volatility to continue into fiscal year 2023 and (cid:76)ill continue to (cid:76)or(cid:64)
closely (cid:76)ith our suppliers and customers in an effort to minimi(cid:79)e the impact on our operations.
their terms(cid:11) or other(cid:76)ise.
Sustainability and Innovation
(cid:50)e believe there (cid:76)ill al(cid:76)ays be a role for the primary pac(cid:64)aging (cid:76)e produce to preserve food(cid:11) beverages(cid:11) and
healthcare products(cid:11) protect consumers(cid:11) and promote brands. Consumers also (cid:76)ant cost effective(cid:11) convenient(cid:11) and easy to use
pac(cid:64)aging (cid:76)ith a reduced environmental footprint and a responsible end of life solution. (cid:50)e have identified a clear path to
provide food(cid:11) beverages(cid:11) and healthcare products to people around the (cid:76)orld in a more sustainable (cid:76)ay(cid:11) and meet our
sustainability ambitions(cid:11) and those of our customers by focusing on (cid:76)hat (cid:76)e believe are the three elements of responsible
pac(cid:64)aging(cid:25) product innovation(cid:11) consumer participation(cid:11) and infrastructure development. (cid:50)e believe our commitment to
responsible pac(cid:64)aging is integral to our success. Our responsible pac(cid:64)aging solutions address both ho(cid:76) the product is made(cid:11) as
(cid:76)ell as (cid:76)hat happens after the consumer uses it(cid:11) offering a (cid:76)ide variety of options to advance sustainability (cid:76)hile meeting our
customers(cid:89) specific pac(cid:64)aging needs. Sustainability is comprehensively embedded across our business(cid:11) from the investments (cid:76)e
are ma(cid:64)ing in sustainable pac(cid:64)aging innovation and design(cid:11) to the partnerships (cid:76)e enter(cid:11) and to ho(cid:76) (cid:76)e run our manufacturing
operations more efficiently.
Innovation is central to Amcor(cid:89)s approach to sustainability and (cid:76)e spend appro(cid:77)imately $100 million a year on
research and development. (cid:50)e are highly regarded for our innovation capabilities and have more than a thousand active patents.
(cid:50)e solve pac(cid:64)aging challenges(cid:11) developing differentiated products(cid:11) services(cid:11) and processes to protect our customers products
and fulfil the needs of the consumers (cid:76)ho rely on them around the globe. (cid:31)ra(cid:76)ing on unrivaled heritage in design(cid:11) science and
manufacturing(cid:11) our more than 1(cid:11)000 research and development ("(cid:45)(cid:5)(cid:31)") professionals and engineers are constantly innovating
ne(cid:76) materials(cid:11) formats(cid:11) and technologies.
(cid:50)e collaborate (cid:76)ith li(cid:64)e(cid:12)minded partners(cid:11) including customers and suppliers(cid:11) in pursuit of innovative solutions to
address some of the (cid:76)orld(cid:89)s most urgent challenges(cid:11) including increasing recycling and reuse and protecting our planet. (cid:50)e
also partner (cid:76)ith non(cid:12)governmental organi(cid:79)ations(cid:11) promising startups(cid:11) and cross(cid:12)industry initiatives and bodies. (cid:47)hese
partnerships enable us to learn(cid:11) e(cid:77)perience other perspectives(cid:11) share our e(cid:77)pertise(cid:11) and e(cid:77)pand our innovation. (cid:50)ith our
partners(cid:11) (cid:76)e advocate for sound global standards(cid:11) better (cid:76)aste management infrastructure(cid:11) and more consumer participation.
(cid:50)e consider our overall environmental footprint to go (cid:76)ell beyond the products (cid:76)e create. (cid:50)e also strive to
continuously reduce the environmental impacts of our operations and(cid:11) for more than a decade(cid:11) our EnviroAction program has
helped us significantly improve ho(cid:76) (cid:76)e manage energy(cid:11) (cid:76)ater(cid:11) and (cid:76)aste in every one of our locations. In (cid:37)anuary 2022(cid:11) (cid:76)e
further increased our efforts by committing to science(cid:12)based targets to reduce greenhouse gas emissions and achieve net (cid:79)ero
emissions by 2050. (cid:47)hese ne(cid:76) commitments have been recogni(cid:79)ed by the Science Based (cid:47)argets initiative (SB(cid:47)i) and build on
years of progress under our EnviroAction program. (cid:47)hrough our unique material science and innovation capabilities(cid:11) (cid:76)e also
advise our customers on the best solutions for their specific needs and those of their consumers (cid:84) (cid:76)ith broad fle(cid:77)ibility across
pac(cid:64)aging functionality(cid:11) formats(cid:11) and materials.
(cid:50)ith our global scale(cid:11) deep industry e(cid:77)perience(cid:11) and strong capabilities(cid:11) (cid:76)e believe that (cid:76)e are uniquely positioned to
lead the (cid:76)ay in the design and development of more sustainable pac(cid:64)aging(cid:11) and this is one of the most important gro(cid:76)th
opportunities for Amcor.
(cid:31)overnmental Laws and Regulations
Our operations and the real property (cid:76)e o(cid:76)n(cid:11) or lease(cid:11) are sub(cid:63)ect to broad governmental la(cid:76)s and regulations(cid:11)
including environmental la(cid:76)s and regulations by multiple (cid:63)urisdictions. (cid:47)hese la(cid:76)s and regulations pertain to employee health
and safety(cid:11) the discharge of certain materials into the environment(cid:11) handling and disposition of (cid:76)aste(cid:11) cleanup of contaminated
soil and ground (cid:76)ater(cid:11) other rules to control pollution and manage natural resources(cid:11) and other government regulations. (cid:50)e
believe that (cid:76)e are in substantial compliance (cid:76)ith applicable health and safety la(cid:76)s(cid:11) environmental la(cid:76)s and regulations based
on the e(cid:77)ecution of our Environmental(cid:11) (cid:35)ealth(cid:11) and Safety (cid:40)anagement System and regular audits of those processes and
systems. (cid:35)o(cid:76)ever(cid:11) (cid:76)e cannot predict (cid:76)ith certainty that (cid:76)e (cid:76)ill not(cid:11) in the future(cid:11) incur liability (cid:76)ith respect to noncompliance
(cid:76)ith health and safety la(cid:76)s(cid:11) environmental la(cid:76)s and regulations due to contamination of sites formerly or currently o(cid:76)ned or
7
Amcor Annual Report 2022
8
Segment Information
Intellectual Property
7
Form 10-K
8
Accounting Standards Codification ("ASC") 280(cid:11) "Segment (cid:45)eporting(cid:11)" establishes the standards for reporting
information about segments in financial statements. In applying the criteria set forth in ASC 280(cid:11) (cid:76)e have determined (cid:76)e have
t(cid:76)o reportable segments(cid:11) Fle(cid:77)ibles and (cid:45)igid (cid:43)ac(cid:64)aging. (cid:47)he reportable segments produce fle(cid:77)ible pac(cid:64)aging(cid:11) rigid pac(cid:64)aging(cid:11)
specialty cartons(cid:11) and closure products(cid:11) (cid:76)hich are sold to customers participating in a range of attractive end use areas
throughout Europe(cid:11) (cid:41)orth America(cid:11) Latin America(cid:11) Africa(cid:11) and the Asia (cid:43)acific regions. (cid:45)efer to (cid:41)ote 21(cid:11) "Segments(cid:11)" of the
notes to consolidated financial statements for financial information about reportable segments.
Our Fle(cid:77)ibles Segment develops and supplies fle(cid:77)ible pac(cid:64)aging globally. (cid:50)ith appro(cid:77)imately 37(cid:11)000 employees at
16(cid:24) significant manufacturing and support facilities in 3(cid:24) countries as of (cid:37)une 30(cid:11) 2022(cid:11) the Fle(cid:77)ibles Segment is one of the
(cid:76)orld(cid:6)s largest suppliers of plastic(cid:11) aluminum(cid:11) and fiber based fle(cid:77)ible pac(cid:64)aging. In fiscal year 2022(cid:11) Fle(cid:77)ibles accounted for
Our (cid:45)igid (cid:43)ac(cid:64)aging Segment manufactures rigid pac(cid:64)aging containers and related products in the Americas. As of
(cid:37)une 30(cid:11) 2022(cid:11) the (cid:45)igid (cid:43)ac(cid:64)aging Segment employed appro(cid:77)imately 6(cid:11)000 employees at 52 significant manufacturing and
support facilities in 11 countries. In fiscal year 2022(cid:11) (cid:45)igid (cid:43)ac(cid:64)aging accounted for appro(cid:77)imately 23(cid:4) of consolidated net
(cid:20)(cid:48)exi(cid:38)(cid:48)es Se(cid:43)me(cid:50)(cid:56)
appro(cid:77)imately 77(cid:4) of consolidated net sales.
Ri(cid:43)i(cid:40) (cid:30)a(cid:39)(cid:47)a(cid:43)i(cid:50)(cid:43) Se(cid:43)me(cid:50)(cid:56)
sales.
(cid:37)ar(cid:61)eting, Distribution, and Competition
Our sales are made through a variety of distribution channels(cid:11) but primarily through our direct sales force. Sales offices
and plants are located throughout Europe(cid:11) (cid:41)orth America(cid:11) Latin America(cid:11) Africa(cid:11) and Asia(cid:12)(cid:43)acific regions to provide prompt
and economical service to thousands of customers. Our technically trained sales force is supported by product development
engineers(cid:11) design technicians(cid:11) field service technicians(cid:11) and customer service teams.
(cid:50)e did not have sales to a single customer that e(cid:77)ceeded 10(cid:4) of consolidated net sales in the last three fiscal years.
(cid:47)he ma(cid:63)or mar(cid:64)ets in (cid:76)hich (cid:76)e sell our products historically have been(cid:11) and continue to be(cid:11) highly competitive. Areas
of competition include service(cid:11) innovation(cid:11) quality(cid:11) and price. Competitors include Aptar(cid:34)roup(cid:11) Inc.(cid:11) Ball Corporation(cid:11) Berry
(cid:34)lobal (cid:34)roup(cid:11) Inc(cid:11) CCL Industries Inc.(cid:11) Cro(cid:76)n (cid:35)oldings(cid:11) Inc.(cid:11) (cid:34)raphic (cid:43)ac(cid:64)aging (cid:35)olding Company(cid:11) (cid:35)uhtama(cid:64)i Oy(cid:63)(cid:11)
International (cid:43)aper Company(cid:11) (cid:40)ayr(cid:12)(cid:40)elnhof (cid:38)arton A(cid:34)(cid:11) O(cid:12)I (cid:34)lass(cid:11) Inc.(cid:11) Sealed Air Corporation(cid:11) Silgan (cid:35)oldings Inc.(cid:11)
Sonoco (cid:43)roducts Company(cid:11) and (cid:50)est(cid:45)oc(cid:64) Company(cid:11) and a variety of privately held companies.
(cid:50)e consider ourselves to be a significant participant in the mar(cid:64)ets in (cid:76)hich (cid:76)e operate(cid:26) ho(cid:76)ever(cid:11) due to the diversity
of our business(cid:11) our precise competitive position in these mar(cid:64)ets is not reasonably determinable.
Bac(cid:61)log
Raw (cid:37)aterials
(cid:50)or(cid:64)ing capital fluctuates throughout the year in relation to business volume and other mar(cid:64)etplace conditions. (cid:50)e
maintain inventory levels that provide a reasonable balance bet(cid:76)een obtaining ra(cid:76) materials at favorable prices and
maintaining adequate inventory levels to enable us to fulfill our commitment to promptly fill customer orders. (cid:40)anufacturing
bac(cid:64)logs are not a significant factor in the mar(cid:64)ets in (cid:76)hich (cid:76)e operate.
(cid:43)olymer resins and films(cid:11) paper(cid:11) in(cid:64)s(cid:11) adhesives(cid:11) aluminum(cid:11) and chemicals constitute the ma(cid:63)or ra(cid:76) materials (cid:76)e use.
(cid:47)hese are purchased from a variety of global industry sources(cid:11) and (cid:76)e are not significantly dependent on any one supplier for
our ra(cid:76) materials. (cid:50)hile persistent industry(cid:12)(cid:76)ide shortages of certain ra(cid:76) materials have continued to occur since the second
half of fiscal 2021(cid:11) (cid:76)e have been able to manage supply disruptions (cid:76)ith no material impact by (cid:76)or(cid:64)ing closely (cid:76)ith our
suppliers and customers. Supply shortages can lead and have in the past led to increased ra(cid:76) material price volatility. Increases
in the price of ra(cid:76) materials are generally able to be passed on to customers through contractual price mechanisms over time
and other means. (cid:50)e e(cid:77)pect supply disruption and price volatility to continue into fiscal year 2023 and (cid:76)ill continue to (cid:76)or(cid:64)
closely (cid:76)ith our suppliers and customers in an effort to minimi(cid:79)e the impact on our operations.
(cid:50)e are the o(cid:76)ner or licensee of more than a thousand (cid:48)nited States and other country patents and patent applications
that relate to our products(cid:11) manufacturing processes(cid:11) and equipment. (cid:50)e have a number of trademar(cid:64)s and trademar(cid:64)
registrations in the (cid:48)nited States and in other countries. (cid:50)e also (cid:64)eep certain technology and processes as trade secrets. Our
patents(cid:11) licenses(cid:11) and trademar(cid:64)s collectively provide a competitive advantage. (cid:35)o(cid:76)ever(cid:11) the loss of any single patent or license
alone (cid:76)ould not have a material adverse effect on our results of operations as a (cid:76)hole or those of our reportable segments.
(cid:43)atents(cid:11) patent applications(cid:11) and license agreements (cid:76)ill e(cid:77)pire or terminate over time by operation of la(cid:76)(cid:11) in accordance (cid:76)ith
their terms(cid:11) or other(cid:76)ise.
Sustainability and Innovation
(cid:50)e believe there (cid:76)ill al(cid:76)ays be a role for the primary pac(cid:64)aging (cid:76)e produce to preserve food(cid:11) beverages(cid:11) and
healthcare products(cid:11) protect consumers(cid:11) and promote brands. Consumers also (cid:76)ant cost effective(cid:11) convenient(cid:11) and easy to use
pac(cid:64)aging (cid:76)ith a reduced environmental footprint and a responsible end of life solution. (cid:50)e have identified a clear path to
provide food(cid:11) beverages(cid:11) and healthcare products to people around the (cid:76)orld in a more sustainable (cid:76)ay(cid:11) and meet our
sustainability ambitions(cid:11) and those of our customers by focusing on (cid:76)hat (cid:76)e believe are the three elements of responsible
pac(cid:64)aging(cid:25) product innovation(cid:11) consumer participation(cid:11) and infrastructure development. (cid:50)e believe our commitment to
responsible pac(cid:64)aging is integral to our success. Our responsible pac(cid:64)aging solutions address both ho(cid:76) the product is made(cid:11) as
(cid:76)ell as (cid:76)hat happens after the consumer uses it(cid:11) offering a (cid:76)ide variety of options to advance sustainability (cid:76)hile meeting our
customers(cid:89) specific pac(cid:64)aging needs. Sustainability is comprehensively embedded across our business(cid:11) from the investments (cid:76)e
are ma(cid:64)ing in sustainable pac(cid:64)aging innovation and design(cid:11) to the partnerships (cid:76)e enter(cid:11) and to ho(cid:76) (cid:76)e run our manufacturing
operations more efficiently.
Innovation is central to Amcor(cid:89)s approach to sustainability and (cid:76)e spend appro(cid:77)imately $100 million a year on
research and development. (cid:50)e are highly regarded for our innovation capabilities and have more than a thousand active patents.
(cid:50)e solve pac(cid:64)aging challenges(cid:11) developing differentiated products(cid:11) services(cid:11) and processes to protect our customers products
and fulfil the needs of the consumers (cid:76)ho rely on them around the globe. (cid:31)ra(cid:76)ing on unrivaled heritage in design(cid:11) science and
manufacturing(cid:11) our more than 1(cid:11)000 research and development ("(cid:45)(cid:5)(cid:31)") professionals and engineers are constantly innovating
ne(cid:76) materials(cid:11) formats(cid:11) and technologies.
(cid:50)e collaborate (cid:76)ith li(cid:64)e(cid:12)minded partners(cid:11) including customers and suppliers(cid:11) in pursuit of innovative solutions to
address some of the (cid:76)orld(cid:89)s most urgent challenges(cid:11) including increasing recycling and reuse and protecting our planet. (cid:50)e
also partner (cid:76)ith non(cid:12)governmental organi(cid:79)ations(cid:11) promising startups(cid:11) and cross(cid:12)industry initiatives and bodies. (cid:47)hese
partnerships enable us to learn(cid:11) e(cid:77)perience other perspectives(cid:11) share our e(cid:77)pertise(cid:11) and e(cid:77)pand our innovation. (cid:50)ith our
partners(cid:11) (cid:76)e advocate for sound global standards(cid:11) better (cid:76)aste management infrastructure(cid:11) and more consumer participation.
(cid:50)e consider our overall environmental footprint to go (cid:76)ell beyond the products (cid:76)e create. (cid:50)e also strive to
continuously reduce the environmental impacts of our operations and(cid:11) for more than a decade(cid:11) our EnviroAction program has
helped us significantly improve ho(cid:76) (cid:76)e manage energy(cid:11) (cid:76)ater(cid:11) and (cid:76)aste in every one of our locations. In (cid:37)anuary 2022(cid:11) (cid:76)e
further increased our efforts by committing to science(cid:12)based targets to reduce greenhouse gas emissions and achieve net (cid:79)ero
emissions by 2050. (cid:47)hese ne(cid:76) commitments have been recogni(cid:79)ed by the Science Based (cid:47)argets initiative (SB(cid:47)i) and build on
years of progress under our EnviroAction program. (cid:47)hrough our unique material science and innovation capabilities(cid:11) (cid:76)e also
advise our customers on the best solutions for their specific needs and those of their consumers (cid:84) (cid:76)ith broad fle(cid:77)ibility across
pac(cid:64)aging functionality(cid:11) formats(cid:11) and materials.
(cid:50)ith our global scale(cid:11) deep industry e(cid:77)perience(cid:11) and strong capabilities(cid:11) (cid:76)e believe that (cid:76)e are uniquely positioned to
lead the (cid:76)ay in the design and development of more sustainable pac(cid:64)aging(cid:11) and this is one of the most important gro(cid:76)th
opportunities for Amcor.
(cid:31)overnmental Laws and Regulations
Our operations and the real property (cid:76)e o(cid:76)n(cid:11) or lease(cid:11) are sub(cid:63)ect to broad governmental la(cid:76)s and regulations(cid:11)
including environmental la(cid:76)s and regulations by multiple (cid:63)urisdictions. (cid:47)hese la(cid:76)s and regulations pertain to employee health
and safety(cid:11) the discharge of certain materials into the environment(cid:11) handling and disposition of (cid:76)aste(cid:11) cleanup of contaminated
soil and ground (cid:76)ater(cid:11) other rules to control pollution and manage natural resources(cid:11) and other government regulations. (cid:50)e
believe that (cid:76)e are in substantial compliance (cid:76)ith applicable health and safety la(cid:76)s(cid:11) environmental la(cid:76)s and regulations based
on the e(cid:77)ecution of our Environmental(cid:11) (cid:35)ealth(cid:11) and Safety (cid:40)anagement System and regular audits of those processes and
systems. (cid:35)o(cid:76)ever(cid:11) (cid:76)e cannot predict (cid:76)ith certainty that (cid:76)e (cid:76)ill not(cid:11) in the future(cid:11) incur liability (cid:76)ith respect to noncompliance
(cid:76)ith health and safety la(cid:76)s(cid:11) environmental la(cid:76)s and regulations due to contamination of sites formerly or currently o(cid:76)ned or
7
8
Amcor Annual Report 2022
Form 10-K
9
operated by us (including contamination caused by prior o(cid:76)ners and operators of such sites) or the off(cid:12)site disposal of regulated
materials(cid:11) or other broad government regulations (cid:76)hich could be significant. In addition(cid:11) these la(cid:76)s and regulations are
constantly changing(cid:11) and (cid:76)e cannot al(cid:76)ays anticipate these changes. (cid:45)efer to (cid:41)ote 20(cid:11) "Contingencies and Legal (cid:43)roceedings(cid:11)"
of the notes to consolidated financial statements for information about legal proceedings. For a more detailed description of the
various la(cid:76)s and regulations that affect our business(cid:11) see Item 1A. "(cid:45)is(cid:64) Factors."
(cid:32)uman Capital (cid:37)anagement
(cid:29)(cid:58)er(cid:58)iew
Seasonal Factors
(cid:47)he business of each of the reportable segments is not seasonal to any material e(cid:77)tent.
Research and Development
(cid:45)efer to (cid:41)ote 2(cid:11) "Significant Accounting (cid:43)olicies(cid:11)" of the notes to consolidated financial statements for information
about our research and development e(cid:77)penditures and policies.
Amcor(cid:89)s aspiration is to be (cid:88)(cid:47)(cid:35)E leading global pac(cid:64)aging company(cid:6). Our people are core to the achievement of our
aspiration. (cid:50)e believe (cid:76)e are (cid:76)inning for our people (cid:76)hen they feel safe(cid:11) engaged(cid:11) and are developing as part of a high(cid:12)
performing(cid:11) global team. (cid:50)e strive to build an outperformance culture in (cid:76)hich (cid:76)e consistently deliver results and strive to
surpass e(cid:77)pectations. At Amcor(cid:11) (cid:76)e are stronger because of the diverse strengths(cid:11) styles(cid:11) cultures(cid:11) and e(cid:77)periences of our
people. (cid:50)e aim to create inclusive (cid:76)or(cid:64)ing environments to ensure each colleague feels valued(cid:11) treated (cid:76)ith respect(cid:11)
encouraged to spea(cid:64)(cid:11) and empo(cid:76)ered to be their best.
As of (cid:37)une 30(cid:11) 2022(cid:11) (cid:76)e had appro(cid:77)imately 44(cid:11)000 employees(cid:11) including part(cid:12)time and temporary (cid:76)or(cid:64)ers(cid:11) (cid:76)orld(cid:76)ide(cid:11)
(cid:76)ith appro(cid:77)imately 30(cid:4) located in (cid:41)orth America(cid:11) 30(cid:4) located in Europe(cid:11) 20(cid:4) located in Latin America(cid:11) and 20(cid:4) located in
the Asia (cid:43)acific region. Collective bargaining agreements cover appro(cid:77)imately 46(cid:4) of our (cid:76)or(cid:64)force. As of (cid:37)une 30(cid:11) 2022(cid:11)
appro(cid:77)imately 6(cid:4) of our employees (cid:76)ere (cid:76)or(cid:64)ing under e(cid:77)pired contracts and appro(cid:77)imately 21(cid:4) (cid:76)ere covered under
collective bargaining agreements that e(cid:77)pire (cid:76)ithin one year.
(cid:22)ea(cid:48)(cid:56)(cid:44) a(cid:50)(cid:40) Safe(cid:56)(cid:61)
Safety is a core value at Amcor. (cid:50)e ta(cid:64)e care of ourselves and each other(cid:11) so everyone returns home safely every day.
Across every level of our organi(cid:79)ation(cid:11) (cid:76)e role model and recogni(cid:79)e safe and responsible behavior as (cid:76)e strive to achieve an
in(cid:63)ury(cid:12)free Amcor. All our facilities abide by global Environment(cid:11) (cid:35)ealth(cid:11) and Safety ("E(cid:35)S") standards for safety and
environmental management. Our Board of (cid:31)irectors receives monthly reports on safety performance and compliance (cid:76)ith our
global E(cid:35)S standards. (cid:31)uring fiscal year 2022(cid:11) (cid:76)e reduced the number of in(cid:63)uries by 3(cid:4) and 57(cid:4) of our sites (cid:76)ere in(cid:63)ury free.
Our response to the CO(cid:49)I(cid:31)(cid:12)1(cid:24) pandemic illustrates our commitment to the health and safety of our employees and the
communities in (cid:76)hich (cid:76)e (cid:76)or(cid:64). (cid:50)e implemented rigorous protocols supported by precautionary measures in each of our
manufacturing and office locations globally to help ensure the health and safety of our people.
As (cid:76)e emerge from the pandemic and continue to focus on the health of our employees(cid:11) (cid:76)e have (cid:76)or(cid:64)ed diligently to
provide a compelling (cid:76)or(cid:64)place for them to return to (cid:76)hile recogni(cid:79)ing and accommodating the need for fle(cid:77)ibility.
(cid:18)e(cid:58)e(cid:48)o(cid:52)i(cid:50)(cid:43) Ta(cid:48)e(cid:50)(cid:56)
At Amcor(cid:11) (cid:76)e are dedicated to attracting(cid:11) developing(cid:11) engaging(cid:11) and retaining the best talent to deliver our (cid:6)(cid:50)inning
Aspiration(cid:6) and ensure a strong succession pipeline for the future.
Our approach to talent is guided by the understanding that differentiated(cid:11) industry(cid:12)leading talent deployed consistently
across our business (cid:76)ill enable Amcor(cid:89)s success.
(cid:50)e deploy systems and processes to ensure our people have clear goals and are empo(cid:76)ered to achieve them. (cid:47)hrough
performance management(cid:11) (cid:76)e align these goals to business targets(cid:11) providing line of sight so each employee understands ho(cid:76)
they contribute to our success. (cid:47)hrough formal revie(cid:76)s(cid:11) performance coaching(cid:11) and feedbac(cid:64)(cid:11) our leaders implement a rigorous
cycle to foster talent.
(cid:26)ear(cid:50)i(cid:50)(cid:43) (cid:3) (cid:18)e(cid:58)e(cid:48)o(cid:52)me(cid:50)(cid:56)
(cid:50)e have implemented training and education programs to help our employees progress across functions and
e(cid:77)perience levels. E(cid:77)amples of these programs include a Leading to Outperform program ("L(cid:47)O") to further advance high(cid:12)
potential talent(cid:11) a Senior Leader (cid:31)evelopment program ("SL(cid:31)(cid:43)") focusing on developing strategic management s(cid:64)ills and
inclusive leadership(cid:11) and an E(cid:77)ecutive (cid:31)evelopment program ("E(cid:31)(cid:43)") for our most senior leaders. In each of these programs
(cid:76)e partner (cid:76)ith leading academic and e(cid:77)ecutive education institutions from around the (cid:76)orld.
(cid:45)ecogni(cid:79)ing the importance of the learning (cid:63)ourney(cid:11) our employees can also access our "(cid:40)asterclass" program (cid:76)hich
delivers an annual series of e(cid:77)ecutive education briefings on topics of functional e(cid:77)cellence and business initiatives. Our focus
this year has been on Accelerating (cid:34)ro(cid:76)th (cid:76)ith sho(cid:76)case presentations from (cid:40)ar(cid:64)eting(cid:11) (cid:45)(cid:5)(cid:31)(cid:11) (cid:43)roduct Branding(cid:11) and
Innovation Leaders.
Our "(cid:37)umpStart(cid:27)Amcor" global program accelerates onboarding of ne(cid:76) employees and provides an avenue for cross(cid:12)
functional learning. (cid:50)e also run an Accelerated Career (cid:31)evelopment program ("AC(cid:31)(cid:43)") (cid:76)hich provides a global inta(cid:64)e on
ne(cid:76) talent (cid:76)ith a structured rotation to develop commercial capabilities and an enhanced global commercial talent pipeline.
(cid:24)
Amcor Annual Report 2022
10
operated by us (including contamination caused by prior o(cid:76)ners and operators of such sites) or the off(cid:12)site disposal of regulated
(cid:32)uman Capital (cid:37)anagement
9
Form 10-K
(cid:20)0
materials(cid:11) or other broad government regulations (cid:76)hich could be significant. In addition(cid:11) these la(cid:76)s and regulations are
constantly changing(cid:11) and (cid:76)e cannot al(cid:76)ays anticipate these changes. (cid:45)efer to (cid:41)ote 20(cid:11) "Contingencies and Legal (cid:43)roceedings(cid:11)"
of the notes to consolidated financial statements for information about legal proceedings. For a more detailed description of the
various la(cid:76)s and regulations that affect our business(cid:11) see Item 1A. "(cid:45)is(cid:64) Factors."
Seasonal Factors
Research and Development
(cid:47)he business of each of the reportable segments is not seasonal to any material e(cid:77)tent.
(cid:45)efer to (cid:41)ote 2(cid:11) "Significant Accounting (cid:43)olicies(cid:11)" of the notes to consolidated financial statements for information
about our research and development e(cid:77)penditures and policies.
(cid:29)(cid:58)er(cid:58)iew
Amcor(cid:89)s aspiration is to be (cid:88)(cid:47)(cid:35)E leading global pac(cid:64)aging company(cid:6). Our people are core to the achievement of our
aspiration. (cid:50)e believe (cid:76)e are (cid:76)inning for our people (cid:76)hen they feel safe(cid:11) engaged(cid:11) and are developing as part of a high(cid:12)
performing(cid:11) global team. (cid:50)e strive to build an outperformance culture in (cid:76)hich (cid:76)e consistently deliver results and strive to
surpass e(cid:77)pectations. At Amcor(cid:11) (cid:76)e are stronger because of the diverse strengths(cid:11) styles(cid:11) cultures(cid:11) and e(cid:77)periences of our
people. (cid:50)e aim to create inclusive (cid:76)or(cid:64)ing environments to ensure each colleague feels valued(cid:11) treated (cid:76)ith respect(cid:11)
encouraged to spea(cid:64)(cid:11) and empo(cid:76)ered to be their best.
As of (cid:37)une 30(cid:11) 2022(cid:11) (cid:76)e had appro(cid:77)imately 44(cid:11)000 employees(cid:11) including part(cid:12)time and temporary (cid:76)or(cid:64)ers(cid:11) (cid:76)orld(cid:76)ide(cid:11)
(cid:76)ith appro(cid:77)imately 30(cid:4) located in (cid:41)orth America(cid:11) 30(cid:4) located in Europe(cid:11) 20(cid:4) located in Latin America(cid:11) and 20(cid:4) located in
the Asia (cid:43)acific region. Collective bargaining agreements cover appro(cid:77)imately 46(cid:4) of our (cid:76)or(cid:64)force. As of (cid:37)une 30(cid:11) 2022(cid:11)
appro(cid:77)imately 6(cid:4) of our employees (cid:76)ere (cid:76)or(cid:64)ing under e(cid:77)pired contracts and appro(cid:77)imately 21(cid:4) (cid:76)ere covered under
collective bargaining agreements that e(cid:77)pire (cid:76)ithin one year.
(cid:22)ea(cid:48)(cid:56)(cid:44) a(cid:50)(cid:40) Safe(cid:56)(cid:61)
Safety is a core value at Amcor. (cid:50)e ta(cid:64)e care of ourselves and each other(cid:11) so everyone returns home safely every day.
Across every level of our organi(cid:79)ation(cid:11) (cid:76)e role model and recogni(cid:79)e safe and responsible behavior as (cid:76)e strive to achieve an
in(cid:63)ury(cid:12)free Amcor. All our facilities abide by global Environment(cid:11) (cid:35)ealth(cid:11) and Safety ("E(cid:35)S") standards for safety and
environmental management. Our Board of (cid:31)irectors receives monthly reports on safety performance and compliance (cid:76)ith our
global E(cid:35)S standards. (cid:31)uring fiscal year 2022(cid:11) (cid:76)e reduced the number of in(cid:63)uries by 3(cid:4) and 57(cid:4) of our sites (cid:76)ere in(cid:63)ury free.
Our response to the CO(cid:49)I(cid:31)(cid:12)1(cid:24) pandemic illustrates our commitment to the health and safety of our employees and the
communities in (cid:76)hich (cid:76)e (cid:76)or(cid:64). (cid:50)e implemented rigorous protocols supported by precautionary measures in each of our
manufacturing and office locations globally to help ensure the health and safety of our people.
As (cid:76)e emerge from the pandemic and continue to focus on the health of our employees(cid:11) (cid:76)e have (cid:76)or(cid:64)ed diligently to
provide a compelling (cid:76)or(cid:64)place for them to return to (cid:76)hile recogni(cid:79)ing and accommodating the need for fle(cid:77)ibility.
(cid:18)e(cid:58)e(cid:48)o(cid:52)i(cid:50)(cid:43) Ta(cid:48)e(cid:50)(cid:56)
At Amcor(cid:11) (cid:76)e are dedicated to attracting(cid:11) developing(cid:11) engaging(cid:11) and retaining the best talent to deliver our (cid:6)(cid:50)inning
Aspiration(cid:6) and ensure a strong succession pipeline for the future.
Our approach to talent is guided by the understanding that differentiated(cid:11) industry(cid:12)leading talent deployed consistently
across our business (cid:76)ill enable Amcor(cid:89)s success.
(cid:50)e deploy systems and processes to ensure our people have clear goals and are empo(cid:76)ered to achieve them. (cid:47)hrough
performance management(cid:11) (cid:76)e align these goals to business targets(cid:11) providing line of sight so each employee understands ho(cid:76)
they contribute to our success. (cid:47)hrough formal revie(cid:76)s(cid:11) performance coaching(cid:11) and feedbac(cid:64)(cid:11) our leaders implement a rigorous
cycle to foster talent.
(cid:26)ear(cid:50)i(cid:50)(cid:43) (cid:3) (cid:18)e(cid:58)e(cid:48)o(cid:52)me(cid:50)(cid:56)
(cid:50)e have implemented training and education programs to help our employees progress across functions and
e(cid:77)perience levels. E(cid:77)amples of these programs include a Leading to Outperform program ("L(cid:47)O") to further advance high(cid:12)
potential talent(cid:11) a Senior Leader (cid:31)evelopment program ("SL(cid:31)(cid:43)") focusing on developing strategic management s(cid:64)ills and
inclusive leadership(cid:11) and an E(cid:77)ecutive (cid:31)evelopment program ("E(cid:31)(cid:43)") for our most senior leaders. In each of these programs
(cid:76)e partner (cid:76)ith leading academic and e(cid:77)ecutive education institutions from around the (cid:76)orld.
(cid:45)ecogni(cid:79)ing the importance of the learning (cid:63)ourney(cid:11) our employees can also access our "(cid:40)asterclass" program (cid:76)hich
delivers an annual series of e(cid:77)ecutive education briefings on topics of functional e(cid:77)cellence and business initiatives. Our focus
this year has been on Accelerating (cid:34)ro(cid:76)th (cid:76)ith sho(cid:76)case presentations from (cid:40)ar(cid:64)eting(cid:11) (cid:45)(cid:5)(cid:31)(cid:11) (cid:43)roduct Branding(cid:11) and
Innovation Leaders.
Our "(cid:37)umpStart(cid:27)Amcor" global program accelerates onboarding of ne(cid:76) employees and provides an avenue for cross(cid:12)
functional learning. (cid:50)e also run an Accelerated Career (cid:31)evelopment program ("AC(cid:31)(cid:43)") (cid:76)hich provides a global inta(cid:64)e on
ne(cid:76) talent (cid:76)ith a structured rotation to develop commercial capabilities and an enhanced global commercial talent pipeline.
(cid:24)
10
Amcor Annual Report 2022
(cid:18)i(cid:58)ersi(cid:56)(cid:61) (cid:3) (cid:23)(cid:50)(cid:39)(cid:48)(cid:57)sio(cid:50)
Information about our E(cid:74)ecutive Officers
Form 10-K
11
At Amcor(cid:11) (cid:76)e(cid:89)re committed to providing an inclusive environment that empo(cid:76)ers us to achieve our full potential.
Becoming (cid:47)(cid:35)E leading global pac(cid:64)aging company requires us to create a culture in (cid:76)hich everyone feels encouraged to spea(cid:64)
and compelled to listen.
Amcor is stronger as a result of the diverse talents(cid:11) styles(cid:11) cultures(cid:11) and e(cid:77)periences of our people. (cid:50)ith different
perspectives come different solutions that enable us to (cid:76)in for our sta(cid:64)eholders. (cid:50)e are one global team in (cid:76)hich everyone has
a voice and can ma(cid:64)e a difference. (cid:50)ith this in mind(cid:11) (cid:76)e (cid:76)or(cid:64) to create a team environment that develops inclusive leaders(cid:11)
(cid:76)here (cid:76)e learn from our people(cid:11) and (cid:76)here listening(cid:11) trust(cid:11) and respect are (cid:64)ey behaviors that form the foundation of our
interactions and foster mutual understanding.
(cid:50)e focus on strengthening (cid:6)talent through diversity(cid:6) and progress is reported to our Board annually. (cid:50)e continually
revie(cid:76) opportunities to strengthen our diversity transparency practices (cid:76)hile adhering to privacy legislation in certain regions
(cid:76)here (cid:76)e operate.
(cid:19)(cid:50)(cid:43)a(cid:43)eme(cid:50)(cid:56)
(cid:31)uring fiscal year 2022(cid:11) (cid:76)e completed our fifth global engagement survey. (cid:47)itled "Our(cid:49)oice(cid:27)Amcor"(cid:11) the survey
trac(cid:64)s the engagement of our employees across multiple dimensions and provides a benchmar(cid:64) against other global
manufacturing companies. In the recent 2022 survey(cid:11) (cid:76)e received feedbac(cid:64) from over 30(cid:11)000 Amcor employees from every
country and business group. (cid:47)he dominant feedbac(cid:64) (cid:76)as that colleagues feel Amcor is a great place to (cid:76)or(cid:64) and that they (cid:76)ant
more communication (cid:76)ith leadership about the direction and future strategies of the Company. Action plans are under(cid:76)ay
across the organi(cid:79)ation to provide feedbac(cid:64) loops and implement action plans.
(cid:19)(cid:56)(cid:44)i(cid:39)s
(cid:34)ood corporate governance and transparency are fundamental to achieving our aspirations. Our employees are
e(cid:77)pected to act (cid:76)ith integrity and ob(cid:63)ectivity and to al(cid:76)ays strive to enhance our reputation and performance.
(cid:50)e maintain a Code of Business Conduct and Ethics (cid:43)olicy (cid:76)hich is signed by every Amcor employee and provides
the Company(cid:6)s frame(cid:76)or(cid:64) for ma(cid:64)ing ethical business decisions. (cid:50)e provide targeted training across the globe to reinforce our
commitment to ethics and drive adherence to the national la(cid:76)s in each country in (cid:76)hich (cid:76)e operate.
(cid:47)he follo(cid:76)ing sets forth the name(cid:11) age(cid:11) and business e(cid:77)perience for at least the last five years of our e(cid:77)ecutive officers.
(cid:48)nless other(cid:76)ise indicated(cid:11) positions sho(cid:76)n are (cid:76)ith Amcor.
Period the Position
was (cid:32)eld
2015 to present
2011 to 2015
2008 to 2011
2015 to present
2014 to 2015
2022 to present
2016 to 2022
2022 to present
2016 to 2022
2018 to present
201(cid:24) to present
2017 to 201(cid:24)
2011 to 2017
(cid:38)ame (Age)
Positions (cid:32)eld
(cid:45)onald (cid:31)elia (51)
(cid:40)anaging (cid:31)irector and Chief E(cid:77)ecutive Officer
E(cid:77)ecutive (cid:49)(cid:43)(cid:11) Finance and Chief Financial Officer
(cid:49)(cid:43) and (cid:34)eneral (cid:40)anager(cid:11) Amcor (cid:45)igid (cid:43)ac(cid:64)aging Latin
America
(cid:40)ichael Casamento (51)
E(cid:77)ecutive (cid:49)(cid:43)(cid:11) Finance and Chief Financial Officer
(cid:49)(cid:43)(cid:11) Corporate Finance
Susana Suare(cid:79) (cid:34)on(cid:79)ale(cid:79) (53)
E(cid:77)ecutive (cid:49)(cid:43) and Chief (cid:35)uman (cid:45)esources Officer
(cid:31)eborah (cid:45)asin (55)
E(cid:77)ecutive (cid:49)(cid:43) and (cid:34)eneral Counsel
E(cid:77)ecutive (cid:49)(cid:43)(cid:11) Chief (cid:35)uman (cid:45)esources and (cid:31)iversity (cid:5)
Inclusion Officer(cid:11) International Flavors and Fragrances
Senior (cid:49)(cid:43)(cid:11) Chief Legal Officer and Secretary(cid:11) (cid:35)ill(cid:12)(cid:45)om
(cid:35)oldings
Eric (cid:45)oegner (52)
(cid:43)resident(cid:11) Amcor (cid:45)igid (cid:43)ac(cid:64)aging
E(cid:77)ecutive Leadership (cid:45)oles(cid:11) Arconic(cid:11) Inc. (f(cid:14)(cid:64)(cid:14)a Alcoa Inc.)
2006 to 2018
Fred Stephan (57)
(cid:43)resident(cid:11) Amcor Fle(cid:77)ibles (cid:41)orth America
(cid:43)resident(cid:11) Bemis (cid:41)orth America
Senior (cid:49)(cid:43) and (cid:34)eneral (cid:40)anager of the Insulation Systems (cid:12)
(cid:37)ohns (cid:40)anville
Ian (cid:50)ilson (64)
E(cid:77)ecutive (cid:49)(cid:43)(cid:11) Strategy and (cid:31)evelopment
2000 to present
(cid:40)ichael (cid:53)ac(cid:64)a (55)
(cid:43)resident(cid:11) Amcor Fle(cid:77)ibles Europe(cid:11) (cid:40)iddle East and Africa
2021 to present
(cid:43)resident(cid:11) Amcor Fle(cid:77)ibles Asia (cid:43)acific and Chief Commercial
2017 to 2021
Officer
(cid:47)etra (cid:43)a(cid:64) (cid:34)lobal Leadership (cid:47)eam
1(cid:24)(cid:24)6 to 2017
Available Information
(cid:50)e are a large accelerated filer (as defined in the Securities E(cid:77)change Act of 1(cid:24)34(cid:11) as amended (the (cid:86)E(cid:77)change Act(cid:87))
(cid:45)ule 12b(cid:12)2) and (cid:76)e are also an electronic filer. Electronically filed reports (Forms 4(cid:11) 8(cid:12)(cid:38)(cid:11) 10(cid:12)(cid:38)(cid:11) 10(cid:12)(cid:44)(cid:11) S(cid:12)3(cid:11) S(cid:12)8(cid:11) etc.) can be
accessed at the SEC(cid:6)s (cid:76)ebsite (http(cid:25)(cid:14)(cid:14)(cid:76)(cid:76)(cid:76).sec.gov). (cid:50)e ma(cid:64)e available free of charge (other than an investor(cid:89)s o(cid:76)n Internet
access charges) through the Investor (cid:45)elations section of our (cid:76)ebsite (http(cid:25)(cid:14)(cid:14)(cid:76)(cid:76)(cid:76).amcor.com(cid:14)investors)(cid:11) under "SEC Filings(cid:11)"
our Annual (cid:45)eport on Form 10(cid:12)(cid:38)(cid:11) (cid:44)uarterly (cid:45)eports on Form 10(cid:12)(cid:44)(cid:11) Current (cid:45)eports on Form 8(cid:12)(cid:38)(cid:11) and if applicable(cid:11)
amendments to those reports filed or furnished pursuant to Section 13(a) or 15(d) of the E(cid:77)change Act as soon as reasonably
practicable after (cid:76)e electronically file such material (cid:76)ith(cid:11) or furnish it to(cid:11) the SEC. (cid:52)ou may also obtain these reports by
(cid:76)riting to us(cid:11) Attention(cid:25) Investor (cid:45)elations(cid:11) Amcor plc(cid:11) Level 11(cid:11) 60 City (cid:45)oad(cid:11) Southban(cid:64)(cid:11) (cid:49)IC(cid:11) 3006(cid:11) Australia. (cid:50)e are not
including the information contained on our (cid:76)ebsite as part of(cid:11) or incorporating it by reference into(cid:11) this Annual (cid:45)eport on Form
10(cid:12)(cid:38).
11
Amcor Annual Report 2022
12
(cid:18)i(cid:58)ersi(cid:56)(cid:61) (cid:3) (cid:23)(cid:50)(cid:39)(cid:48)(cid:57)sio(cid:50)
and compelled to listen.
(cid:76)here (cid:76)e operate.
(cid:19)(cid:50)(cid:43)a(cid:43)eme(cid:50)(cid:56)
(cid:19)(cid:56)(cid:44)i(cid:39)s
Amcor is stronger as a result of the diverse talents(cid:11) styles(cid:11) cultures(cid:11) and e(cid:77)periences of our people. (cid:50)ith different
perspectives come different solutions that enable us to (cid:76)in for our sta(cid:64)eholders. (cid:50)e are one global team in (cid:76)hich everyone has
a voice and can ma(cid:64)e a difference. (cid:50)ith this in mind(cid:11) (cid:76)e (cid:76)or(cid:64) to create a team environment that develops inclusive leaders(cid:11)
(cid:76)here (cid:76)e learn from our people(cid:11) and (cid:76)here listening(cid:11) trust(cid:11) and respect are (cid:64)ey behaviors that form the foundation of our
interactions and foster mutual understanding.
(cid:50)e focus on strengthening (cid:6)talent through diversity(cid:6) and progress is reported to our Board annually. (cid:50)e continually
revie(cid:76) opportunities to strengthen our diversity transparency practices (cid:76)hile adhering to privacy legislation in certain regions
(cid:31)uring fiscal year 2022(cid:11) (cid:76)e completed our fifth global engagement survey. (cid:47)itled "Our(cid:49)oice(cid:27)Amcor"(cid:11) the survey
trac(cid:64)s the engagement of our employees across multiple dimensions and provides a benchmar(cid:64) against other global
manufacturing companies. In the recent 2022 survey(cid:11) (cid:76)e received feedbac(cid:64) from over 30(cid:11)000 Amcor employees from every
country and business group. (cid:47)he dominant feedbac(cid:64) (cid:76)as that colleagues feel Amcor is a great place to (cid:76)or(cid:64) and that they (cid:76)ant
more communication (cid:76)ith leadership about the direction and future strategies of the Company. Action plans are under(cid:76)ay
across the organi(cid:79)ation to provide feedbac(cid:64) loops and implement action plans.
At Amcor(cid:11) (cid:76)e(cid:89)re committed to providing an inclusive environment that empo(cid:76)ers us to achieve our full potential.
Becoming (cid:47)(cid:35)E leading global pac(cid:64)aging company requires us to create a culture in (cid:76)hich everyone feels encouraged to spea(cid:64)
(cid:47)he follo(cid:76)ing sets forth the name(cid:11) age(cid:11) and business e(cid:77)perience for at least the last five years of our e(cid:77)ecutive officers.
(cid:48)nless other(cid:76)ise indicated(cid:11) positions sho(cid:76)n are (cid:76)ith Amcor.
Information about our E(cid:74)ecutive Officers
11
Form 10-K
(cid:20)2
(cid:38)ame (Age)
Positions (cid:32)eld
(cid:45)onald (cid:31)elia (51)
(cid:40)anaging (cid:31)irector and Chief E(cid:77)ecutive Officer
E(cid:77)ecutive (cid:49)(cid:43)(cid:11) Finance and Chief Financial Officer
(cid:49)(cid:43) and (cid:34)eneral (cid:40)anager(cid:11) Amcor (cid:45)igid (cid:43)ac(cid:64)aging Latin
America
(cid:40)ichael Casamento (51)
E(cid:77)ecutive (cid:49)(cid:43)(cid:11) Finance and Chief Financial Officer
(cid:49)(cid:43)(cid:11) Corporate Finance
Susana Suare(cid:79) (cid:34)on(cid:79)ale(cid:79) (53)
E(cid:77)ecutive (cid:49)(cid:43) and Chief (cid:35)uman (cid:45)esources Officer
(cid:31)eborah (cid:45)asin (55)
E(cid:77)ecutive (cid:49)(cid:43)(cid:11) Chief (cid:35)uman (cid:45)esources and (cid:31)iversity (cid:5)
Inclusion Officer(cid:11) International Flavors and Fragrances
E(cid:77)ecutive (cid:49)(cid:43) and (cid:34)eneral Counsel
Senior (cid:49)(cid:43)(cid:11) Chief Legal Officer and Secretary(cid:11) (cid:35)ill(cid:12)(cid:45)om
(cid:35)oldings
Eric (cid:45)oegner (52)
(cid:43)resident(cid:11) Amcor (cid:45)igid (cid:43)ac(cid:64)aging
Period the Position
was (cid:32)eld
2015 to present
2011 to 2015
2008 to 2011
2015 to present
2014 to 2015
2022 to present
2016 to 2022
2022 to present
2016 to 2022
2018 to present
E(cid:77)ecutive Leadership (cid:45)oles(cid:11) Arconic(cid:11) Inc. (f(cid:14)(cid:64)(cid:14)a Alcoa Inc.)
2006 to 2018
(cid:34)ood corporate governance and transparency are fundamental to achieving our aspirations. Our employees are
e(cid:77)pected to act (cid:76)ith integrity and ob(cid:63)ectivity and to al(cid:76)ays strive to enhance our reputation and performance.
(cid:50)e maintain a Code of Business Conduct and Ethics (cid:43)olicy (cid:76)hich is signed by every Amcor employee and provides
the Company(cid:6)s frame(cid:76)or(cid:64) for ma(cid:64)ing ethical business decisions. (cid:50)e provide targeted training across the globe to reinforce our
commitment to ethics and drive adherence to the national la(cid:76)s in each country in (cid:76)hich (cid:76)e operate.
Fred Stephan (57)
(cid:43)resident(cid:11) Amcor Fle(cid:77)ibles (cid:41)orth America
(cid:43)resident(cid:11) Bemis (cid:41)orth America
Senior (cid:49)(cid:43) and (cid:34)eneral (cid:40)anager of the Insulation Systems (cid:12)
(cid:37)ohns (cid:40)anville
Ian (cid:50)ilson (64)
E(cid:77)ecutive (cid:49)(cid:43)(cid:11) Strategy and (cid:31)evelopment
(cid:40)ichael (cid:53)ac(cid:64)a (55)
Available Information
(cid:43)resident(cid:11) Amcor Fle(cid:77)ibles Europe(cid:11) (cid:40)iddle East and Africa
(cid:43)resident(cid:11) Amcor Fle(cid:77)ibles Asia (cid:43)acific and Chief Commercial
Officer
(cid:47)etra (cid:43)a(cid:64) (cid:34)lobal Leadership (cid:47)eam
201(cid:24) to present
2017 to 201(cid:24)
2011 to 2017
2000 to present
2021 to present
2017 to 2021
1(cid:24)(cid:24)6 to 2017
(cid:50)e are a large accelerated filer (as defined in the Securities E(cid:77)change Act of 1(cid:24)34(cid:11) as amended (the (cid:86)E(cid:77)change Act(cid:87))
(cid:45)ule 12b(cid:12)2) and (cid:76)e are also an electronic filer. Electronically filed reports (Forms 4(cid:11) 8(cid:12)(cid:38)(cid:11) 10(cid:12)(cid:38)(cid:11) 10(cid:12)(cid:44)(cid:11) S(cid:12)3(cid:11) S(cid:12)8(cid:11) etc.) can be
accessed at the SEC(cid:6)s (cid:76)ebsite (http(cid:25)(cid:14)(cid:14)(cid:76)(cid:76)(cid:76).sec.gov). (cid:50)e ma(cid:64)e available free of charge (other than an investor(cid:89)s o(cid:76)n Internet
access charges) through the Investor (cid:45)elations section of our (cid:76)ebsite (http(cid:25)(cid:14)(cid:14)(cid:76)(cid:76)(cid:76).amcor.com(cid:14)investors)(cid:11) under "SEC Filings(cid:11)"
our Annual (cid:45)eport on Form 10(cid:12)(cid:38)(cid:11) (cid:44)uarterly (cid:45)eports on Form 10(cid:12)(cid:44)(cid:11) Current (cid:45)eports on Form 8(cid:12)(cid:38)(cid:11) and if applicable(cid:11)
amendments to those reports filed or furnished pursuant to Section 13(a) or 15(d) of the E(cid:77)change Act as soon as reasonably
practicable after (cid:76)e electronically file such material (cid:76)ith(cid:11) or furnish it to(cid:11) the SEC. (cid:52)ou may also obtain these reports by
(cid:76)riting to us(cid:11) Attention(cid:25) Investor (cid:45)elations(cid:11) Amcor plc(cid:11) Level 11(cid:11) 60 City (cid:45)oad(cid:11) Southban(cid:64)(cid:11) (cid:49)IC(cid:11) 3006(cid:11) Australia. (cid:50)e are not
including the information contained on our (cid:76)ebsite as part of(cid:11) or incorporating it by reference into(cid:11) this Annual (cid:45)eport on Form
10(cid:12)(cid:38).
11
12
Amcor Annual Report 2022
Item 1A(cid:12) - Ris(cid:61) Factors
(cid:47)he follo(cid:76)ing factors(cid:11) as (cid:76)ell as factors described else(cid:76)here in this Annual (cid:45)eport on Form 10(cid:12)(cid:38)(cid:11) or in other filings
(cid:43)row(cid:56)(cid:44)(cid:6) i(cid:50)(cid:39)(cid:48)(cid:57)(cid:40)i(cid:50)(cid:43) (cid:52)ro(cid:40)(cid:57)(cid:39)(cid:56) i(cid:50)(cid:50)o(cid:58)a(cid:56)io(cid:50)(cid:6) or a(cid:39)(cid:53)(cid:57)isi(cid:56)io(cid:50)s(cid:8)
(cid:19)x(cid:52)a(cid:50)(cid:40)i(cid:50)(cid:43) (cid:29)(cid:57)r (cid:17)(cid:57)rre(cid:50)(cid:56) (cid:16)(cid:57)si(cid:50)ess (cid:62) (cid:36)e ma(cid:61) (cid:38)e (cid:57)(cid:50)a(cid:38)(cid:48)e (cid:56)o ex(cid:52)a(cid:50)(cid:40) o(cid:57)r (cid:39)(cid:57)rre(cid:50)(cid:56) (cid:38)(cid:57)si(cid:50)ess effe(cid:39)(cid:56)i(cid:58)e(cid:48)(cid:61) (cid:56)(cid:44)ro(cid:57)(cid:43)(cid:44) ei(cid:56)(cid:44)er or(cid:43)a(cid:50)i(cid:39)
Form 10-K
13
by us (cid:76)ith the Securities and E(cid:77)change Commission(cid:11) could adversely affect our business(cid:11) financial condition(cid:11) results of
operations(cid:11) or cash flo(cid:76)s. Other factors not presently (cid:64)no(cid:76)n to us or(cid:11) that (cid:76)e presently believe are not material(cid:11) could also
affect our business operations and financial results.
Strategic Ris(cid:61)s
(cid:17)(cid:44)a(cid:50)(cid:43)es i(cid:50) (cid:17)o(cid:50)s(cid:57)mer (cid:18)ema(cid:50)(cid:40) (cid:62) (cid:36)e are ex(cid:52)ose(cid:40) (cid:56)o (cid:39)(cid:44)a(cid:50)(cid:43)es i(cid:50) (cid:39)o(cid:50)s(cid:57)mer (cid:40)ema(cid:50)(cid:40) (cid:52)a(cid:56)(cid:56)er(cid:50)s a(cid:50)(cid:40) (cid:39)(cid:57)s(cid:56)omer re(cid:53)(cid:57)ireme(cid:50)(cid:56)s i(cid:50)
(cid:50)(cid:57)mero(cid:57)s i(cid:50)(cid:40)(cid:57)s(cid:56)ries(cid:8)
Sales of our products and services depend heavily on the volume of sales made by our customers to consumers.
Alternative consumer preferences for products in the industries that (cid:76)e serve or the pac(cid:64)aging formats in (cid:76)hich such products
are delivered(cid:11) (cid:76)hether as a result of changes in cost(cid:11) convenience or health(cid:11) environmental and social concerns and perceptions(cid:11)
may result in a decline in the demand for certain of our products or the obsolescence of some of our e(cid:77)isting products. Any ne(cid:76)
products that (cid:76)e produce may not meet sales or margin e(cid:77)pectations due to many factors(cid:11) including our or our customers(cid:6)
inability to accurately predict customer demand(cid:11) end user preferences or movements in industry standards(cid:11) or to develop
products that meet consumer demand in a timely and cost(cid:12)effective manner.
Changing preferences for products and pac(cid:64)aging formats may result in increased demand for other products (cid:76)e
produce. (cid:35)o(cid:76)ever(cid:11) to the e(cid:77)tent changing preferences are not offset by demand for ne(cid:76) or alternative products(cid:11) changes to
consumer preferences could have an adverse effect on our business(cid:11) financial condition(cid:11) results of operations(cid:11) or cash flo(cid:76)s.
(cid:25)e(cid:61) (cid:17)(cid:57)s(cid:56)omers a(cid:50)(cid:40) (cid:17)(cid:57)s(cid:56)omer (cid:17)o(cid:50)so(cid:48)i(cid:40)a(cid:56)io(cid:50) (cid:62) T(cid:44)e (cid:48)oss of (cid:47)e(cid:61) (cid:39)(cid:57)s(cid:56)omers(cid:6) a re(cid:40)(cid:57)(cid:39)(cid:56)io(cid:50) i(cid:50) (cid:56)(cid:44)eir (cid:52)ro(cid:40)(cid:57)(cid:39)(cid:56)io(cid:50) re(cid:53)(cid:57)ireme(cid:50)(cid:56)s or
(cid:39)o(cid:50)so(cid:48)i(cid:40)a(cid:56)io(cid:50) amo(cid:50)(cid:43) (cid:47)e(cid:61) (cid:39)(cid:57)s(cid:56)omers (cid:39)o(cid:57)(cid:48)(cid:40) (cid:44)a(cid:58)e a si(cid:43)(cid:50)ifi(cid:39)a(cid:50)(cid:56) a(cid:40)(cid:58)erse im(cid:52)a(cid:39)(cid:56) o(cid:50) o(cid:57)r sa(cid:48)es re(cid:58)e(cid:50)(cid:57)e a(cid:50)(cid:40) (cid:52)rofi(cid:56)a(cid:38)i(cid:48)i(cid:56)(cid:61)(cid:8)
(cid:45)elationships (cid:76)ith our customers are fundamental to our success(cid:11) particularly given the nature of the pac(cid:64)aging
industry and the other supply choices available to customers. (cid:50)hile (cid:76)e do not have a single customer accounting for more than
ten percent of our net sales(cid:11) customer concentration can be more pronounced (cid:76)ithin certain businesses. Consequently(cid:11) the loss
of any of our (cid:64)ey customers or any significant reduction in their production requirements(cid:11) or an adverse change in the terms of
our supply agreements (cid:76)ith them(cid:11) could reduce our sales revenue and net profit. (cid:47)here is no assurance that e(cid:77)isting customer
relationships (cid:76)ill be rene(cid:76)ed at e(cid:77)isting volume or price levels(cid:11) or at all.
Customers (cid:76)ith operations sub(cid:63)ect to physical ris(cid:64)s(cid:11) including due to climate change(cid:11) may relocate production to areas
that are less impacted and such areas may be out of range of Amcor(cid:6)s production sites or supplying such relocated facilities may
lead to additional costs. Any loss(cid:11) change(cid:11) or other adverse event related to our (cid:64)ey customer relationships could have an
adverse effect on our business(cid:11) financial condition(cid:11) results of operations(cid:11) or cash flo(cid:76)s(cid:11) (cid:76)hich effect may be material.
In addition(cid:11) over recent years certain of our customers have acquired companies (cid:76)ith similar or complementary
product lines. (cid:47)his consolidation has increased the concentration of our business (cid:76)ith these customers. Such consolidation may
be accompanied by pressure from customers for lo(cid:76)er prices(cid:11) reflecting the increase in the total volume of products purchased
or the elimination of a price differential bet(cid:76)een the acquiring customer and the company acquired. (cid:50)hile (cid:76)e have generally
been successful at managing customer consolidations(cid:11) increased pricing pressures from our customers could have a material
adverse effect on our results of operations.
(cid:17)om(cid:52)e(cid:56)i(cid:56)io(cid:50) (cid:62) (cid:36)e fa(cid:39)e si(cid:43)(cid:50)ifi(cid:39)a(cid:50)(cid:56) (cid:39)om(cid:52)e(cid:56)i(cid:56)io(cid:50) i(cid:50) (cid:56)(cid:44)e i(cid:50)(cid:40)(cid:57)s(cid:56)ries a(cid:50)(cid:40) re(cid:43)io(cid:50)s i(cid:50) w(cid:44)i(cid:39)(cid:44) we o(cid:52)era(cid:56)e(cid:6) w(cid:44)i(cid:39)(cid:44) (cid:39)o(cid:57)(cid:48)(cid:40) a(cid:40)(cid:58)erse(cid:48)(cid:61)
affe(cid:39)(cid:56) o(cid:57)r (cid:38)(cid:57)si(cid:50)ess(cid:8)
impact of inflation.
(cid:50)e operate in highly competitive geographies and end use areas(cid:11) each (cid:76)ith varying barriers to entry(cid:11) industry
structures(cid:11) and competitive behavior. (cid:50)e regularly bid for ne(cid:76) and continuing business in the industries and regions in (cid:76)hich
(cid:76)e operate and (cid:76)e continue to change in response to consumer demand. (cid:50)e cannot predict (cid:76)ith certainty the changes that may
affect our competitiveness.
(cid:47)he loss of business from our larger customers(cid:11) or the rene(cid:76)al of business on less favorable terms(cid:11) may have a
significant impact on our operating results. In addition(cid:11) our competitors may develop a disruptive technology or other
technological innovations that could increase their ability to compete for our current or potential customers. (cid:41)o assurance can
be given that the actions of established or potential competitors (cid:76)ill not have an adverse effect on our ability to implement our
plans and on our business(cid:11) financial condition(cid:11) results of operations(cid:11) or cash flo(cid:76)s.
13
Amcor Annual Report 2022
14
Our business strategy includes both organic e(cid:77)pansion of our e(cid:77)isting operations(cid:11) particularly through efforts to
strengthen and e(cid:77)pand relationships (cid:76)ith customers in emerging mar(cid:64)ets(cid:11) product innovation(cid:11) including to address changes in
the industry or regulatory environments(cid:11) and e(cid:77)pansion through acquisitions. (cid:35)o(cid:76)ever(cid:11) (cid:76)e may not be able to e(cid:77)ecute our
strategy effectively for reasons (cid:76)ithin and outside our control. Our ability to gro(cid:76) organically may be limited by(cid:11) among other
things(cid:11) e(cid:77)tensive saturation in the locations in (cid:76)hich (cid:76)e operate or a change or reduction in our customers(cid:89) gro(cid:76)th plans due to
changing economic conditions(cid:11) strategic priorities(cid:11) or other(cid:76)ise. For many of our businesses(cid:11) organic gro(cid:76)th depends on
product innovation(cid:11) ne(cid:76) product development(cid:11) and timely responses to changing consumer demands and preferences.
Consequently(cid:11) failure to develop ne(cid:76) or improved products in response to changing consumer preferences in a timely manner
may hinder our gro(cid:76)th potential(cid:11) affect our competitive position(cid:11) and adversely affect our business and results of operations.
Additionally(cid:11) over the past decade(cid:11) (cid:76)e have pursued gro(cid:76)th through acquisitions(cid:11) and there can be no assurance that
(cid:76)e (cid:76)ill be able to identify suitable acquisition targets in the right geographic regions and (cid:76)ith the right participation strategy in
the future(cid:11) or to complete such acquisitions on acceptable terms or at all. If (cid:76)e are unable to identify acquisition targets that
meet our investment criteria and close such transactions on acceptable terms(cid:11) our potential for gro(cid:76)th by (cid:76)ay of acquisition
may be restricted(cid:11) (cid:76)hich could have an adverse effect on achievement of our strategy and the resulting e(cid:77)pected financial
benefits.
(cid:50)e also may face challenges in integrating our acquisitions (cid:76)ith our e(cid:77)isting operations. (cid:47)hese challenges could
include difficulty in integrating or consolidating business processes and systems and challenges (cid:76)ith integrating the business
cultures (cid:76)hich may lead to anticipated benefits of acquisitions not being reali(cid:79)ed fully(cid:11) or at all(cid:11) or may ta(cid:64)e longer to reali(cid:79)e
than e(cid:77)pected or involve more costs to do so. In addition(cid:11) the process of integrating operations could result in an interruption of
normal business operations.
Operational Ris(cid:61)s
(cid:21)(cid:48)o(cid:38)a(cid:48) (cid:19)(cid:39)o(cid:50)omi(cid:39) (cid:17)o(cid:50)(cid:40)i(cid:56)io(cid:50)s (cid:62) (cid:17)(cid:44)a(cid:48)(cid:48)e(cid:50)(cid:43)i(cid:50)(cid:43) (cid:39)(cid:57)rre(cid:50)(cid:56) a(cid:50)(cid:40) f(cid:57)(cid:56)(cid:57)re (cid:43)(cid:48)o(cid:38)a(cid:48) e(cid:39)o(cid:50)omi(cid:39) (cid:39)o(cid:50)(cid:40)i(cid:56)io(cid:50)s(cid:6) i(cid:50)(cid:39)(cid:48)(cid:57)(cid:40)i(cid:50)(cid:43) i(cid:50)f(cid:48)a(cid:56)io(cid:50) a(cid:50)(cid:40) s(cid:57)(cid:52)(cid:52)(cid:48)(cid:61)
(cid:39)(cid:44)ai(cid:50) (cid:40)isr(cid:57)(cid:52)(cid:56)io(cid:50)s(cid:6) (cid:44)a(cid:58)e (cid:44)a(cid:40)(cid:6) a(cid:50)(cid:40) ma(cid:61) (cid:39)o(cid:50)(cid:56)i(cid:50)(cid:57)e (cid:56)o (cid:44)a(cid:58)e(cid:6) a (cid:50)e(cid:43)a(cid:56)i(cid:58)e im(cid:52)a(cid:39)(cid:56) o(cid:50) o(cid:57)r (cid:38)(cid:57)si(cid:50)ess o(cid:52)era(cid:56)io(cid:50)s a(cid:50)(cid:40) fi(cid:50)a(cid:50)(cid:39)ia(cid:48) res(cid:57)(cid:48)(cid:56)s(cid:8)
(cid:31)emand for our products and services is dependent on consumer demand for our pac(cid:64)aging products(cid:11) including
pac(cid:64)aged food(cid:11) beverage(cid:11) healthcare(cid:11) personal care(cid:11) agribusiness(cid:11) industrial(cid:11) and other consumer goods. As a result(cid:11) general
economic do(cid:76)nturns in our (cid:64)ey geographic regions and globally can adversely affect our business operations and financial
results. (cid:47)he CO(cid:49)I(cid:31)(cid:12)1(cid:24) pandemic and (cid:45)ussia(cid:12)(cid:48)(cid:64)raine conflict have increased volatility in (cid:76)orld economies. Current global
economic challenges(cid:11) including relatively high inflation and supply chain constraints in (cid:64)ey regions in (cid:76)hich (cid:76)e operate(cid:11) are
li(cid:64)ely to continue to put pressure on our business.
(cid:50)hen challenging economic conditions e(cid:77)ist(cid:11) our customers may delay(cid:11) decrease or cancel purchases from us(cid:11) and
may also delay payment or fail to pay us altogether. Suppliers may have difficulty filling our orders and distributors may have
difficulty getting our products to customers(cid:11) (cid:76)hich may affect our ability to meet customer demands(cid:11) and result in a loss of
business. (cid:50)ea(cid:64)ened global economic conditions may also result in unfavorable changes in our product prices and product mi(cid:77)
and lo(cid:76)er profit margins. Although (cid:76)e ta(cid:64)e measures to mitigate the impact of inflation(cid:11) including through pricing actions and
productivity programs(cid:11) if these actions are not effective our cash flo(cid:76)(cid:11) financial condition(cid:11) and results of operations could
materially and adversely be impacted. In addition(cid:11) there could be a time lag bet(cid:76)een recogni(cid:79)ing the benefit of our mitigating
actions and (cid:76)hen the inflation occurs and there is no assurance that our mitigating measures (cid:76)ill be able to fully mitigate the
(cid:43)olitical uncertainty may also contribute to the general economic conditions in one or more mar(cid:64)ets in (cid:76)hich (cid:76)e
operate. For e(cid:77)ample(cid:11) in fiscal year 2022(cid:11) political developments and general civil unrest in South Africa and the (cid:45)ussia(cid:12)
(cid:48)(cid:64)raine conflict resulted in net e(cid:77)penses of $213 million(cid:11) including impairment and restructuring e(cid:77)penses. Future unrest in
other regions in (cid:76)hich (cid:76)e operate could result in a material impact to our financial condition. (cid:43)olitical developments can also
disrupt the mar(cid:64)ets (cid:76)e serve and the ta(cid:77) (cid:63)urisdictions in (cid:76)hich (cid:76)e operate(cid:11) and may cause us to lose customers(cid:11) suppliers(cid:11) and
employees(cid:11) and adversely impact profitability.
13
Form 10-K
14
Item 1A(cid:12) - Ris(cid:61) Factors
Strategic Ris(cid:61)s
(cid:50)(cid:57)mero(cid:57)s i(cid:50)(cid:40)(cid:57)s(cid:56)ries(cid:8)
(cid:47)he follo(cid:76)ing factors(cid:11) as (cid:76)ell as factors described else(cid:76)here in this Annual (cid:45)eport on Form 10(cid:12)(cid:38)(cid:11) or in other filings
by us (cid:76)ith the Securities and E(cid:77)change Commission(cid:11) could adversely affect our business(cid:11) financial condition(cid:11) results of
operations(cid:11) or cash flo(cid:76)s. Other factors not presently (cid:64)no(cid:76)n to us or(cid:11) that (cid:76)e presently believe are not material(cid:11) could also
affect our business operations and financial results.
(cid:17)(cid:44)a(cid:50)(cid:43)es i(cid:50) (cid:17)o(cid:50)s(cid:57)mer (cid:18)ema(cid:50)(cid:40) (cid:62) (cid:36)e are ex(cid:52)ose(cid:40) (cid:56)o (cid:39)(cid:44)a(cid:50)(cid:43)es i(cid:50) (cid:39)o(cid:50)s(cid:57)mer (cid:40)ema(cid:50)(cid:40) (cid:52)a(cid:56)(cid:56)er(cid:50)s a(cid:50)(cid:40) (cid:39)(cid:57)s(cid:56)omer re(cid:53)(cid:57)ireme(cid:50)(cid:56)s i(cid:50)
Sales of our products and services depend heavily on the volume of sales made by our customers to consumers.
Alternative consumer preferences for products in the industries that (cid:76)e serve or the pac(cid:64)aging formats in (cid:76)hich such products
are delivered(cid:11) (cid:76)hether as a result of changes in cost(cid:11) convenience or health(cid:11) environmental and social concerns and perceptions(cid:11)
may result in a decline in the demand for certain of our products or the obsolescence of some of our e(cid:77)isting products. Any ne(cid:76)
products that (cid:76)e produce may not meet sales or margin e(cid:77)pectations due to many factors(cid:11) including our or our customers(cid:6)
inability to accurately predict customer demand(cid:11) end user preferences or movements in industry standards(cid:11) or to develop
products that meet consumer demand in a timely and cost(cid:12)effective manner.
Changing preferences for products and pac(cid:64)aging formats may result in increased demand for other products (cid:76)e
produce. (cid:35)o(cid:76)ever(cid:11) to the e(cid:77)tent changing preferences are not offset by demand for ne(cid:76) or alternative products(cid:11) changes to
consumer preferences could have an adverse effect on our business(cid:11) financial condition(cid:11) results of operations(cid:11) or cash flo(cid:76)s.
(cid:25)e(cid:61) (cid:17)(cid:57)s(cid:56)omers a(cid:50)(cid:40) (cid:17)(cid:57)s(cid:56)omer (cid:17)o(cid:50)so(cid:48)i(cid:40)a(cid:56)io(cid:50) (cid:62) T(cid:44)e (cid:48)oss of (cid:47)e(cid:61) (cid:39)(cid:57)s(cid:56)omers(cid:6) a re(cid:40)(cid:57)(cid:39)(cid:56)io(cid:50) i(cid:50) (cid:56)(cid:44)eir (cid:52)ro(cid:40)(cid:57)(cid:39)(cid:56)io(cid:50) re(cid:53)(cid:57)ireme(cid:50)(cid:56)s or
(cid:39)o(cid:50)so(cid:48)i(cid:40)a(cid:56)io(cid:50) amo(cid:50)(cid:43) (cid:47)e(cid:61) (cid:39)(cid:57)s(cid:56)omers (cid:39)o(cid:57)(cid:48)(cid:40) (cid:44)a(cid:58)e a si(cid:43)(cid:50)ifi(cid:39)a(cid:50)(cid:56) a(cid:40)(cid:58)erse im(cid:52)a(cid:39)(cid:56) o(cid:50) o(cid:57)r sa(cid:48)es re(cid:58)e(cid:50)(cid:57)e a(cid:50)(cid:40) (cid:52)rofi(cid:56)a(cid:38)i(cid:48)i(cid:56)(cid:61)(cid:8)
(cid:45)elationships (cid:76)ith our customers are fundamental to our success(cid:11) particularly given the nature of the pac(cid:64)aging
industry and the other supply choices available to customers. (cid:50)hile (cid:76)e do not have a single customer accounting for more than
ten percent of our net sales(cid:11) customer concentration can be more pronounced (cid:76)ithin certain businesses. Consequently(cid:11) the loss
of any of our (cid:64)ey customers or any significant reduction in their production requirements(cid:11) or an adverse change in the terms of
our supply agreements (cid:76)ith them(cid:11) could reduce our sales revenue and net profit. (cid:47)here is no assurance that e(cid:77)isting customer
relationships (cid:76)ill be rene(cid:76)ed at e(cid:77)isting volume or price levels(cid:11) or at all.
Customers (cid:76)ith operations sub(cid:63)ect to physical ris(cid:64)s(cid:11) including due to climate change(cid:11) may relocate production to areas
that are less impacted and such areas may be out of range of Amcor(cid:6)s production sites or supplying such relocated facilities may
lead to additional costs. Any loss(cid:11) change(cid:11) or other adverse event related to our (cid:64)ey customer relationships could have an
adverse effect on our business(cid:11) financial condition(cid:11) results of operations(cid:11) or cash flo(cid:76)s(cid:11) (cid:76)hich effect may be material.
In addition(cid:11) over recent years certain of our customers have acquired companies (cid:76)ith similar or complementary
product lines. (cid:47)his consolidation has increased the concentration of our business (cid:76)ith these customers. Such consolidation may
be accompanied by pressure from customers for lo(cid:76)er prices(cid:11) reflecting the increase in the total volume of products purchased
or the elimination of a price differential bet(cid:76)een the acquiring customer and the company acquired. (cid:50)hile (cid:76)e have generally
been successful at managing customer consolidations(cid:11) increased pricing pressures from our customers could have a material
adverse effect on our results of operations.
(cid:17)om(cid:52)e(cid:56)i(cid:56)io(cid:50) (cid:62) (cid:36)e fa(cid:39)e si(cid:43)(cid:50)ifi(cid:39)a(cid:50)(cid:56) (cid:39)om(cid:52)e(cid:56)i(cid:56)io(cid:50) i(cid:50) (cid:56)(cid:44)e i(cid:50)(cid:40)(cid:57)s(cid:56)ries a(cid:50)(cid:40) re(cid:43)io(cid:50)s i(cid:50) w(cid:44)i(cid:39)(cid:44) we o(cid:52)era(cid:56)e(cid:6) w(cid:44)i(cid:39)(cid:44) (cid:39)o(cid:57)(cid:48)(cid:40) a(cid:40)(cid:58)erse(cid:48)(cid:61)
affe(cid:39)(cid:56) o(cid:57)r (cid:38)(cid:57)si(cid:50)ess(cid:8)
(cid:50)e operate in highly competitive geographies and end use areas(cid:11) each (cid:76)ith varying barriers to entry(cid:11) industry
structures(cid:11) and competitive behavior. (cid:50)e regularly bid for ne(cid:76) and continuing business in the industries and regions in (cid:76)hich
(cid:76)e operate and (cid:76)e continue to change in response to consumer demand. (cid:50)e cannot predict (cid:76)ith certainty the changes that may
affect our competitiveness.
(cid:47)he loss of business from our larger customers(cid:11) or the rene(cid:76)al of business on less favorable terms(cid:11) may have a
significant impact on our operating results. In addition(cid:11) our competitors may develop a disruptive technology or other
technological innovations that could increase their ability to compete for our current or potential customers. (cid:41)o assurance can
be given that the actions of established or potential competitors (cid:76)ill not have an adverse effect on our ability to implement our
plans and on our business(cid:11) financial condition(cid:11) results of operations(cid:11) or cash flo(cid:76)s.
(cid:19)x(cid:52)a(cid:50)(cid:40)i(cid:50)(cid:43) (cid:29)(cid:57)r (cid:17)(cid:57)rre(cid:50)(cid:56) (cid:16)(cid:57)si(cid:50)ess (cid:62) (cid:36)e ma(cid:61) (cid:38)e (cid:57)(cid:50)a(cid:38)(cid:48)e (cid:56)o ex(cid:52)a(cid:50)(cid:40) o(cid:57)r (cid:39)(cid:57)rre(cid:50)(cid:56) (cid:38)(cid:57)si(cid:50)ess effe(cid:39)(cid:56)i(cid:58)e(cid:48)(cid:61) (cid:56)(cid:44)ro(cid:57)(cid:43)(cid:44) ei(cid:56)(cid:44)er or(cid:43)a(cid:50)i(cid:39)
(cid:43)row(cid:56)(cid:44)(cid:6) i(cid:50)(cid:39)(cid:48)(cid:57)(cid:40)i(cid:50)(cid:43) (cid:52)ro(cid:40)(cid:57)(cid:39)(cid:56) i(cid:50)(cid:50)o(cid:58)a(cid:56)io(cid:50)(cid:6) or a(cid:39)(cid:53)(cid:57)isi(cid:56)io(cid:50)s(cid:8)
Our business strategy includes both organic e(cid:77)pansion of our e(cid:77)isting operations(cid:11) particularly through efforts to
strengthen and e(cid:77)pand relationships (cid:76)ith customers in emerging mar(cid:64)ets(cid:11) product innovation(cid:11) including to address changes in
the industry or regulatory environments(cid:11) and e(cid:77)pansion through acquisitions. (cid:35)o(cid:76)ever(cid:11) (cid:76)e may not be able to e(cid:77)ecute our
strategy effectively for reasons (cid:76)ithin and outside our control. Our ability to gro(cid:76) organically may be limited by(cid:11) among other
things(cid:11) e(cid:77)tensive saturation in the locations in (cid:76)hich (cid:76)e operate or a change or reduction in our customers(cid:89) gro(cid:76)th plans due to
changing economic conditions(cid:11) strategic priorities(cid:11) or other(cid:76)ise. For many of our businesses(cid:11) organic gro(cid:76)th depends on
product innovation(cid:11) ne(cid:76) product development(cid:11) and timely responses to changing consumer demands and preferences.
Consequently(cid:11) failure to develop ne(cid:76) or improved products in response to changing consumer preferences in a timely manner
may hinder our gro(cid:76)th potential(cid:11) affect our competitive position(cid:11) and adversely affect our business and results of operations.
Additionally(cid:11) over the past decade(cid:11) (cid:76)e have pursued gro(cid:76)th through acquisitions(cid:11) and there can be no assurance that
(cid:76)e (cid:76)ill be able to identify suitable acquisition targets in the right geographic regions and (cid:76)ith the right participation strategy in
the future(cid:11) or to complete such acquisitions on acceptable terms or at all. If (cid:76)e are unable to identify acquisition targets that
meet our investment criteria and close such transactions on acceptable terms(cid:11) our potential for gro(cid:76)th by (cid:76)ay of acquisition
may be restricted(cid:11) (cid:76)hich could have an adverse effect on achievement of our strategy and the resulting e(cid:77)pected financial
benefits.
(cid:50)e also may face challenges in integrating our acquisitions (cid:76)ith our e(cid:77)isting operations. (cid:47)hese challenges could
include difficulty in integrating or consolidating business processes and systems and challenges (cid:76)ith integrating the business
cultures (cid:76)hich may lead to anticipated benefits of acquisitions not being reali(cid:79)ed fully(cid:11) or at all(cid:11) or may ta(cid:64)e longer to reali(cid:79)e
than e(cid:77)pected or involve more costs to do so. In addition(cid:11) the process of integrating operations could result in an interruption of
normal business operations.
Operational Ris(cid:61)s
(cid:21)(cid:48)o(cid:38)a(cid:48) (cid:19)(cid:39)o(cid:50)omi(cid:39) (cid:17)o(cid:50)(cid:40)i(cid:56)io(cid:50)s (cid:62) (cid:17)(cid:44)a(cid:48)(cid:48)e(cid:50)(cid:43)i(cid:50)(cid:43) (cid:39)(cid:57)rre(cid:50)(cid:56) a(cid:50)(cid:40) f(cid:57)(cid:56)(cid:57)re (cid:43)(cid:48)o(cid:38)a(cid:48) e(cid:39)o(cid:50)omi(cid:39) (cid:39)o(cid:50)(cid:40)i(cid:56)io(cid:50)s(cid:6) i(cid:50)(cid:39)(cid:48)(cid:57)(cid:40)i(cid:50)(cid:43) i(cid:50)f(cid:48)a(cid:56)io(cid:50) a(cid:50)(cid:40) s(cid:57)(cid:52)(cid:52)(cid:48)(cid:61)
(cid:39)(cid:44)ai(cid:50) (cid:40)isr(cid:57)(cid:52)(cid:56)io(cid:50)s(cid:6) (cid:44)a(cid:58)e (cid:44)a(cid:40)(cid:6) a(cid:50)(cid:40) ma(cid:61) (cid:39)o(cid:50)(cid:56)i(cid:50)(cid:57)e (cid:56)o (cid:44)a(cid:58)e(cid:6) a (cid:50)e(cid:43)a(cid:56)i(cid:58)e im(cid:52)a(cid:39)(cid:56) o(cid:50) o(cid:57)r (cid:38)(cid:57)si(cid:50)ess o(cid:52)era(cid:56)io(cid:50)s a(cid:50)(cid:40) fi(cid:50)a(cid:50)(cid:39)ia(cid:48) res(cid:57)(cid:48)(cid:56)s(cid:8)
(cid:31)emand for our products and services is dependent on consumer demand for our pac(cid:64)aging products(cid:11) including
pac(cid:64)aged food(cid:11) beverage(cid:11) healthcare(cid:11) personal care(cid:11) agribusiness(cid:11) industrial(cid:11) and other consumer goods. As a result(cid:11) general
economic do(cid:76)nturns in our (cid:64)ey geographic regions and globally can adversely affect our business operations and financial
results. (cid:47)he CO(cid:49)I(cid:31)(cid:12)1(cid:24) pandemic and (cid:45)ussia(cid:12)(cid:48)(cid:64)raine conflict have increased volatility in (cid:76)orld economies. Current global
economic challenges(cid:11) including relatively high inflation and supply chain constraints in (cid:64)ey regions in (cid:76)hich (cid:76)e operate(cid:11) are
li(cid:64)ely to continue to put pressure on our business.
(cid:50)hen challenging economic conditions e(cid:77)ist(cid:11) our customers may delay(cid:11) decrease or cancel purchases from us(cid:11) and
may also delay payment or fail to pay us altogether. Suppliers may have difficulty filling our orders and distributors may have
difficulty getting our products to customers(cid:11) (cid:76)hich may affect our ability to meet customer demands(cid:11) and result in a loss of
business. (cid:50)ea(cid:64)ened global economic conditions may also result in unfavorable changes in our product prices and product mi(cid:77)
and lo(cid:76)er profit margins. Although (cid:76)e ta(cid:64)e measures to mitigate the impact of inflation(cid:11) including through pricing actions and
productivity programs(cid:11) if these actions are not effective our cash flo(cid:76)(cid:11) financial condition(cid:11) and results of operations could
materially and adversely be impacted. In addition(cid:11) there could be a time lag bet(cid:76)een recogni(cid:79)ing the benefit of our mitigating
actions and (cid:76)hen the inflation occurs and there is no assurance that our mitigating measures (cid:76)ill be able to fully mitigate the
impact of inflation.
(cid:43)olitical uncertainty may also contribute to the general economic conditions in one or more mar(cid:64)ets in (cid:76)hich (cid:76)e
operate. For e(cid:77)ample(cid:11) in fiscal year 2022(cid:11) political developments and general civil unrest in South Africa and the (cid:45)ussia(cid:12)
(cid:48)(cid:64)raine conflict resulted in net e(cid:77)penses of $213 million(cid:11) including impairment and restructuring e(cid:77)penses. Future unrest in
other regions in (cid:76)hich (cid:76)e operate could result in a material impact to our financial condition. (cid:43)olitical developments can also
disrupt the mar(cid:64)ets (cid:76)e serve and the ta(cid:77) (cid:63)urisdictions in (cid:76)hich (cid:76)e operate(cid:11) and may cause us to lose customers(cid:11) suppliers(cid:11) and
employees(cid:11) and adversely impact profitability.
13
14
Amcor Annual Report 2022
Form 10-K
15
(cid:23)(cid:50)(cid:56)er(cid:50)a(cid:56)io(cid:50)a(cid:48) (cid:29)(cid:52)era(cid:56)io(cid:50)s (cid:62) (cid:29)(cid:57)r i(cid:50)(cid:56)er(cid:50)a(cid:56)io(cid:50)a(cid:48) o(cid:52)era(cid:56)io(cid:50)s s(cid:57)(cid:38)(cid:46)e(cid:39)(cid:56) (cid:57)s (cid:56)o (cid:58)ario(cid:57)s ris(cid:47)s (cid:56)(cid:44)a(cid:56) (cid:39)o(cid:57)(cid:48)(cid:40) a(cid:40)(cid:58)erse(cid:48)(cid:61) affe(cid:39)(cid:56) o(cid:57)r (cid:38)(cid:57)si(cid:50)ess
o(cid:52)era(cid:56)io(cid:50)s a(cid:50)(cid:40) fi(cid:50)a(cid:50)(cid:39)ia(cid:48) res(cid:57)(cid:48)(cid:56)s(cid:8)
(cid:50)e have operations throughout the (cid:76)orld(cid:11) including facilities located in emerging mar(cid:64)ets. In fiscal year 2022(cid:11)
appro(cid:77)imately 73(cid:4) of our sales revenue came from developed mar(cid:64)ets and 27(cid:4) came from emerging mar(cid:64)ets. (cid:50)e e(cid:77)pect to
continue to e(cid:77)pand our operations in the future(cid:11) particularly in the emerging mar(cid:64)ets.
(cid:40)anagement of global operations is comple(cid:77)(cid:11) particularly given the often substantial differences in the cultural(cid:11)
political(cid:11) and regulatory environments of the countries in (cid:76)hich (cid:76)e operate. In addition(cid:11) many of the countries in (cid:76)hich (cid:76)e
have operations(cid:11) including Argentina(cid:11) Bra(cid:79)il(cid:11) China(cid:11) Colombia(cid:11) India(cid:11) (cid:43)eru(cid:11) (cid:45)ussia(cid:11) South Africa(cid:11) and (cid:48)(cid:64)raine(cid:11) have
underdeveloped or developing legal(cid:11) regulatory(cid:11) or political systems(cid:11) (cid:76)hich are sub(cid:63)ect to dynamic change(cid:11) including civil
unrest.
(cid:47)he profitability of our operations may be adversely impacted by(cid:11) among other things(cid:25)
(cid:82)
(cid:82)
(cid:82)
(cid:82)
(cid:82)
(cid:82)
changes in applicable fiscal or regulatory regimes(cid:26)
changes in(cid:11) or difficulties in interpreting and complying (cid:76)ith(cid:11) local la(cid:76)s(cid:11) sanctions(cid:11) and regulations(cid:11) including ta(cid:77)(cid:11)
labor(cid:11) foreign investment and foreign e(cid:77)change control la(cid:76)s(cid:26)
nullification(cid:11) modification(cid:11) or renegotiation of(cid:11) or difficulties or delays in enforcing(cid:11) contracts (cid:76)ith clients or (cid:63)oint
venture partners that are sub(cid:63)ect to local la(cid:76)(cid:26)
reversal of current political(cid:11) (cid:63)udicial(cid:11) or administrative policies encouraging foreign investment or foreign trade(cid:11) or
relating to the use of local agents(cid:11) representatives(cid:11) or partners in the relevant (cid:63)urisdictions(cid:26)
pandemics(cid:11) such as CO(cid:49)I(cid:31)(cid:12)1(cid:24)(cid:11) impacting various regions of the (cid:76)orld unequally(cid:26) or
changes in e(cid:77)change rates and inflation(cid:11) including hyperinflation(cid:11) (cid:76)hich may be further e(cid:77)acerbated by the CO(cid:49)I(cid:31)(cid:12)1(cid:24)
pandemic.
Further(cid:11) sustained periods of legal(cid:11) regulatory(cid:11) or political instability in the emerging mar(cid:64)ets in (cid:76)hich (cid:76)e operate
could have an adverse effect on our business(cid:11) cash flo(cid:76)(cid:11) financial condition(cid:11) and results of operations(cid:11) (cid:76)hich effect may be
material.
(cid:47)he recent conflict bet(cid:76)een (cid:45)ussia and (cid:48)(cid:64)raine has negatively impacted the global economy and led to various
economic sanctions being imposed by the (cid:48).S.(cid:11) (cid:48)nited (cid:38)ingdom(cid:11) European (cid:48)nion(cid:11) and other countries against (cid:45)ussia. In
advance of the conflict(cid:11) (cid:76)e proactively suspended operations at our manufacturing site in (cid:48)(cid:64)raine. (cid:50)e also operate three
manufacturing facilities in (cid:45)ussia (cid:76)hich (cid:76)e have classified as held for sale at (cid:37)une 30(cid:11) 2022. (cid:50)e have recorded impairment
charges related to our operations in (cid:48)(cid:64)raine and (cid:45)ussia of $138 million in fiscal year 2022. It is not possible to predict the
broader or longer(cid:12)term consequences of this conflict. Further sanctions as (cid:76)ell as steps ta(cid:64)en by our customers(cid:11) suppliers(cid:11) or
other sta(cid:64)eholders may disrupt our ability to sell our assets in (cid:45)ussia. Continued escalation of geopolitical tensions related to
the conflict could result in the loss of property(cid:11) supply chain disruptions(cid:11) significant inflationary pressure on ra(cid:76) material prices
and cost and supply of other resources (such as energy and natural gas)(cid:11) fluctuations in our customers(cid:89) buying patterns given
regional shortages of food ingredients and other factors(cid:11) credit and capital mar(cid:64)et disruption (cid:76)hich could impact our ability to
obtain financing(cid:11) increase in interest rates(cid:11) and adverse foreign e(cid:77)change impacts. (cid:47)hese broader consequences could have a
material adverse effect on our business(cid:11) cash flo(cid:76)(cid:11) financial condition(cid:11) and results of operations.
(cid:47)he international scope of our operations(cid:11) (cid:76)hich includes limited sales of our products to entities located in countries
sub(cid:63)ect to certain economic sanctions administered by the (cid:48).S. Office of Foreign Assets Control(cid:11) and the (cid:48).S. (cid:31)epartment of
State(cid:11) and (cid:47)rade and other applicable national and supranational organi(cid:79)ations (collectively(cid:11) "Sanctions")(cid:11) and operations in
certain countries that are from time to time sub(cid:63)ect to Sanctions(cid:11) including those enacted as a result of the (cid:45)ussia(cid:12)(cid:48)(cid:64)raine
conflict(cid:11) also requires us to maintain internal processes and control procedures. Failure to do so could result in breach by our
employees of various la(cid:76)s and regulations(cid:11) including those relating to money laundering(cid:11) corruption(cid:11) e(cid:77)port control(cid:11) fraud(cid:11)
bribery(cid:11) insider trading(cid:11) antitrust(cid:11) competition(cid:11) and economic sanctions(cid:11) (cid:76)hether due to a lac(cid:64) of integrity or a(cid:76)areness or
other(cid:76)ise. Any such breach could have an adverse effect on our financial condition and result in reputational damage to our
business(cid:11) (cid:76)hich effect may be material.
instability(cid:11) and other factors impacting supply and demand pressures. For e(cid:77)ample(cid:11) (cid:76)e have seen disruptions in the supply of
certain ra(cid:76) materials(cid:11) such as specialty resins(cid:11) and increased price volatility of certain ra(cid:76) materials across many of the regions
in (cid:76)hich (cid:76)e operate since the second half of fiscal year 2021. Additionally(cid:11) changes in international trade policy in the
countries in (cid:76)hich (cid:76)e operate could materially impact the cost and supply of ra(cid:76) materials as duties are assessed on ra(cid:76)
materials used in our production process and global supply of (cid:64)ey ra(cid:76) materials is disrupted. For e(cid:77)ample(cid:11) in 2018(cid:11) the (cid:48).S.
government imposed a 10(cid:4) tariff on all aluminum imports into the (cid:48)nited States from China and in (cid:37)uly 2022(cid:11) the (cid:48).S.
(cid:31)epartment of Commerce announced an investigation to determine (cid:76)hether imports of aluminum from (cid:47)hailand and South
(cid:38)orea circumvented the duties on Chinese aluminum.
(cid:50)hile (cid:76)e have largely been able to successfully manage through these supply disruptions and related price volatility(cid:11)
there is no assurance (cid:76)e (cid:76)ill be able to successfully navigate through any ongoing and future disruptions. Increases in costs and
disruptions in supply can have an adverse effect on our business and financial results. Although (cid:76)e see(cid:64) to mitigate these ris(cid:64)s
through various strategies(cid:11) including by entering into contracts (cid:76)ith certain customers (cid:76)hich permit certain price ad(cid:63)ustments to
reflect increased ra(cid:76) material costs or by other(cid:76)ise see(cid:64)ing to increase our prices to offset increases in ra(cid:76) material costs and
see(cid:64)ing alternative sources of supply for (cid:64)ey ra(cid:76) materials(cid:11) there is no guarantee that (cid:76)e (cid:76)ill be able to anticipate or mitigate
commodity and input price movements or mitigate supply disruptions. In addition(cid:11) there may be delays in ad(cid:63)usting prices to
correspond (cid:76)ith underlying ra(cid:76) material costs and corresponding impacts on our (cid:76)or(cid:64)ing capital and level of indebtedness and
any failure to anticipate or mitigate against such movements could have an adverse effect on our business(cid:11) financial condition(cid:11)
results of operations(cid:11) or cash flo(cid:76)s(cid:11) (cid:76)hich effect may be material.
(cid:17)ommer(cid:39)ia(cid:48) Ris(cid:47)s (cid:62) (cid:36)e are s(cid:57)(cid:38)(cid:46)e(cid:39)(cid:56) (cid:56)o (cid:52)ro(cid:40)(cid:57)(cid:39)(cid:56)io(cid:50)(cid:6) s(cid:57)(cid:52)(cid:52)(cid:48)(cid:61)(cid:6) a(cid:50)(cid:40) o(cid:56)(cid:44)er (cid:39)ommer(cid:39)ia(cid:48) ris(cid:47)s(cid:6) i(cid:50)(cid:39)(cid:48)(cid:57)(cid:40)i(cid:50)(cid:43) (cid:39)o(cid:57)(cid:50)(cid:56)er(cid:52)ar(cid:56)(cid:61) (cid:39)re(cid:40)i(cid:56) ris(cid:47)s(cid:6)
w(cid:44)i(cid:39)(cid:44) ma(cid:61) (cid:38)e exa(cid:39)er(cid:38)a(cid:56)e(cid:40) i(cid:50) (cid:56)imes of e(cid:39)o(cid:50)omi(cid:39) (cid:58)o(cid:48)a(cid:56)i(cid:48)i(cid:56)(cid:61)(cid:8)
(cid:50)e face a number of commercial ris(cid:64)s(cid:11) including (i) operational disruption(cid:11) such as mechanical or technological
failures or forced closures due to pandemics or (cid:76)ar (such as CO(cid:49)I(cid:31)(cid:12)1(cid:24) or the (cid:45)ussia(cid:12)(cid:48)(cid:64)raine conflict)(cid:11) each of (cid:76)hich could(cid:11) in
turn(cid:11) lead to production loss and(cid:14)or increased costs(cid:11) (ii) shortages in manufacturing inputs due to the loss of (cid:64)ey suppliers or
their inability to supply inputs and (iii) ris(cid:64)s associated (cid:76)ith development pro(cid:63)ects (such as cost overruns and delays).
Supply shortages(cid:11) fluctuations in freight costs(cid:11) limitations on shipping capacity(cid:11) or other disruptions in our supply
chain(cid:11) including as a result of sourcing materials from a single supplier or those that may occur related to CO(cid:49)I(cid:31)(cid:12)1(cid:24) or other
natural disasters(cid:11) or (cid:76)ar(cid:11) could affect our ability to obtain timely delivery of ra(cid:76) materials(cid:11) equipment and other supplies(cid:11) and in
turn(cid:11) adversely impact our ability to supply products to our customers. Such disruptions could have an adverse effect on our
business and financial results. In response to the CO(cid:49)I(cid:31)(cid:12)1(cid:24) pandemic(cid:11) (cid:76)e have implemented employee safety measures across
all our supply chain facilities(cid:11) including proper hygiene(cid:11) social distancing and temporary screening (cid:76)hich at a minimum are in
compliance (cid:76)ith local government regulations. (cid:47)hese measures may not be sufficient to prevent the spread of CO(cid:49)I(cid:31)(cid:12)1(cid:24)
among our employees. Illness(cid:11) travel restrictions(cid:11) absenteeism(cid:11) or other (cid:76)or(cid:64)force disruptions could negatively impact our
supply chain(cid:11) manufacturing(cid:11) distribution(cid:11) or other business activities.
Additionally(cid:11) the insolvency of(cid:11) or contractual default by(cid:11) any of our customers(cid:11) suppliers(cid:11) and financial institutions(cid:11)
such as ban(cid:64)s and insurance providers(cid:11) may have a significant adverse effect on our operations and financial condition. Such
ris(cid:64)s are e(cid:77)acerbated in times of economic volatility (such as economic volatility caused by CO(cid:49)I(cid:31)(cid:12)1(cid:24) and the (cid:45)ussia(cid:12)(cid:48)(cid:64)raine
conflict)(cid:11) either globally or in the geographies and industries in (cid:76)hich our customers operate. If a counterparty defaults on a
payment obligation to us(cid:11) (cid:76)e may be unable to collect the amounts o(cid:76)ed and some or all of these outstanding amounts may
need to be (cid:76)ritten off. If a counterparty becomes insolvent or is other(cid:76)ise unable to meet its obligations in connection (cid:76)ith a
particular pro(cid:63)ect(cid:11) (cid:76)e may need to find a replacement to fulfill that party(cid:89)s obligations or(cid:11) alternatively(cid:11) fulfill those obligations
ourselves(cid:11) (cid:76)hich is li(cid:64)ely to be more e(cid:77)pensive. (cid:47)he occurrence of any of these ris(cid:64)s(cid:11) including any default by our
counterparties(cid:11) could have an adverse effect on our business(cid:11) financial condition(cid:11) results of operations(cid:11) or cash flo(cid:76)s(cid:11) (cid:76)hich
effect may be material and result in a competitive disadvantage.
Raw (cid:27)a(cid:56)eria(cid:48)s (cid:62) (cid:30)ri(cid:39)e f(cid:48)(cid:57)(cid:39)(cid:56)(cid:57)a(cid:56)io(cid:50)s or s(cid:44)or(cid:56)a(cid:43)es i(cid:50) (cid:56)(cid:44)e a(cid:58)ai(cid:48)a(cid:38)i(cid:48)i(cid:56)(cid:61) of raw ma(cid:56)eria(cid:48)s(cid:6) e(cid:50)er(cid:43)(cid:61) a(cid:50)(cid:40) o(cid:56)(cid:44)er i(cid:50)(cid:52)(cid:57)(cid:56)s (cid:39)o(cid:57)(cid:48)(cid:40)
a(cid:40)(cid:58)erse(cid:48)(cid:61) affe(cid:39)(cid:56) o(cid:57)r (cid:38)(cid:57)si(cid:50)ess(cid:8)
(cid:21)(cid:48)o(cid:38)a(cid:48) (cid:22)ea(cid:48)(cid:56)(cid:44) (cid:29)(cid:57)(cid:56)(cid:38)rea(cid:47)s (cid:62) (cid:29)(cid:57)r (cid:38)(cid:57)si(cid:50)ess a(cid:50)(cid:40) o(cid:52)era(cid:56)io(cid:50)s ma(cid:61) (cid:38)e a(cid:40)(cid:58)erse(cid:48)(cid:61) affe(cid:39)(cid:56)e(cid:40) (cid:38)(cid:61) (cid:56)(cid:44)e o(cid:50)(cid:43)oi(cid:50)(cid:43) (cid:17)oro(cid:50)a(cid:58)ir(cid:57)s (cid:52)a(cid:50)(cid:40)emi(cid:39)
(cid:4)(cid:2)(cid:17)(cid:29)(cid:35)(cid:23)(cid:18)(cid:7)(cid:11)(cid:14)(cid:2)(cid:5) or o(cid:56)(cid:44)er simi(cid:48)ar (cid:52)a(cid:50)(cid:40)emi(cid:39)s(cid:8)
As a manufacturer of pac(cid:64)aging products(cid:11) our sales and profitability are dependent on the availability and cost of ra(cid:76)
materials and labor and other inputs(cid:11) including energy. All of the ra(cid:76) materials (cid:76)e use are purchased from third parties and our
primary inputs include polymer resins and films(cid:11) in(cid:64)s and solvents(cid:11) aluminum(cid:11) and fiber(cid:12)based carton board. (cid:43)rices for these
ra(cid:76) materials are sub(cid:63)ect to substantial fluctuations that are beyond our control due to factors such as changing economic
conditions(cid:11) pandemics(cid:11) such as CO(cid:49)I(cid:31)(cid:12)1(cid:24)(cid:11) currency and commodity price fluctuations(cid:11) resource availability(cid:11) transportation
costs(cid:11) (cid:76)eather conditions and natural disasters(cid:11) geopolitical ris(cid:64)s(cid:11) including (cid:76)ar (such as the (cid:45)ussia(cid:12)(cid:48)(cid:64)raine conflict) and
Our business and financial results may be negatively impacted by outbrea(cid:64)s of contagious diseases(cid:11) including
CO(cid:49)I(cid:31)(cid:12)1(cid:24). As a result of CO(cid:49)I(cid:31)(cid:12)1(cid:24)(cid:11) governmental authorities have implemented and(cid:11) in certain regions(cid:11) are continuing to
implement numerous measures to try to contain the virus(cid:11) such as travel bans and restrictions(cid:11) limitations on gatherings(cid:11)
quarantines(cid:11) shelter(cid:12)in(cid:12)place orders(cid:11) and business shutdo(cid:76)ns. (cid:40)easures providing for business shutdo(cid:76)ns generally e(cid:77)clude
essential services and the critical infrastructure supporting the essential services. (cid:50)e have e(cid:77)perienced minimal disruptions to
our operations to date as (cid:76)e have largely been deemed as providing essential services.
15
Amcor Annual Report 2022
16
15
Form 10-K
16
(cid:23)(cid:50)(cid:56)er(cid:50)a(cid:56)io(cid:50)a(cid:48) (cid:29)(cid:52)era(cid:56)io(cid:50)s (cid:62) (cid:29)(cid:57)r i(cid:50)(cid:56)er(cid:50)a(cid:56)io(cid:50)a(cid:48) o(cid:52)era(cid:56)io(cid:50)s s(cid:57)(cid:38)(cid:46)e(cid:39)(cid:56) (cid:57)s (cid:56)o (cid:58)ario(cid:57)s ris(cid:47)s (cid:56)(cid:44)a(cid:56) (cid:39)o(cid:57)(cid:48)(cid:40) a(cid:40)(cid:58)erse(cid:48)(cid:61) affe(cid:39)(cid:56) o(cid:57)r (cid:38)(cid:57)si(cid:50)ess
o(cid:52)era(cid:56)io(cid:50)s a(cid:50)(cid:40) fi(cid:50)a(cid:50)(cid:39)ia(cid:48) res(cid:57)(cid:48)(cid:56)s(cid:8)
(cid:50)e have operations throughout the (cid:76)orld(cid:11) including facilities located in emerging mar(cid:64)ets. In fiscal year 2022(cid:11)
appro(cid:77)imately 73(cid:4) of our sales revenue came from developed mar(cid:64)ets and 27(cid:4) came from emerging mar(cid:64)ets. (cid:50)e e(cid:77)pect to
continue to e(cid:77)pand our operations in the future(cid:11) particularly in the emerging mar(cid:64)ets.
(cid:40)anagement of global operations is comple(cid:77)(cid:11) particularly given the often substantial differences in the cultural(cid:11)
political(cid:11) and regulatory environments of the countries in (cid:76)hich (cid:76)e operate. In addition(cid:11) many of the countries in (cid:76)hich (cid:76)e
have operations(cid:11) including Argentina(cid:11) Bra(cid:79)il(cid:11) China(cid:11) Colombia(cid:11) India(cid:11) (cid:43)eru(cid:11) (cid:45)ussia(cid:11) South Africa(cid:11) and (cid:48)(cid:64)raine(cid:11) have
underdeveloped or developing legal(cid:11) regulatory(cid:11) or political systems(cid:11) (cid:76)hich are sub(cid:63)ect to dynamic change(cid:11) including civil
unrest.
(cid:82)
(cid:82)
(cid:82)
(cid:82)
(cid:82)
(cid:82)
material.
(cid:47)he profitability of our operations may be adversely impacted by(cid:11) among other things(cid:25)
changes in applicable fiscal or regulatory regimes(cid:26)
changes in(cid:11) or difficulties in interpreting and complying (cid:76)ith(cid:11) local la(cid:76)s(cid:11) sanctions(cid:11) and regulations(cid:11) including ta(cid:77)(cid:11)
labor(cid:11) foreign investment and foreign e(cid:77)change control la(cid:76)s(cid:26)
nullification(cid:11) modification(cid:11) or renegotiation of(cid:11) or difficulties or delays in enforcing(cid:11) contracts (cid:76)ith clients or (cid:63)oint
venture partners that are sub(cid:63)ect to local la(cid:76)(cid:26)
reversal of current political(cid:11) (cid:63)udicial(cid:11) or administrative policies encouraging foreign investment or foreign trade(cid:11) or
relating to the use of local agents(cid:11) representatives(cid:11) or partners in the relevant (cid:63)urisdictions(cid:26)
pandemics(cid:11) such as CO(cid:49)I(cid:31)(cid:12)1(cid:24)(cid:11) impacting various regions of the (cid:76)orld unequally(cid:26) or
changes in e(cid:77)change rates and inflation(cid:11) including hyperinflation(cid:11) (cid:76)hich may be further e(cid:77)acerbated by the CO(cid:49)I(cid:31)(cid:12)1(cid:24)
pandemic.
Further(cid:11) sustained periods of legal(cid:11) regulatory(cid:11) or political instability in the emerging mar(cid:64)ets in (cid:76)hich (cid:76)e operate
could have an adverse effect on our business(cid:11) cash flo(cid:76)(cid:11) financial condition(cid:11) and results of operations(cid:11) (cid:76)hich effect may be
(cid:47)he recent conflict bet(cid:76)een (cid:45)ussia and (cid:48)(cid:64)raine has negatively impacted the global economy and led to various
economic sanctions being imposed by the (cid:48).S.(cid:11) (cid:48)nited (cid:38)ingdom(cid:11) European (cid:48)nion(cid:11) and other countries against (cid:45)ussia. In
advance of the conflict(cid:11) (cid:76)e proactively suspended operations at our manufacturing site in (cid:48)(cid:64)raine. (cid:50)e also operate three
manufacturing facilities in (cid:45)ussia (cid:76)hich (cid:76)e have classified as held for sale at (cid:37)une 30(cid:11) 2022. (cid:50)e have recorded impairment
charges related to our operations in (cid:48)(cid:64)raine and (cid:45)ussia of $138 million in fiscal year 2022. It is not possible to predict the
broader or longer(cid:12)term consequences of this conflict. Further sanctions as (cid:76)ell as steps ta(cid:64)en by our customers(cid:11) suppliers(cid:11) or
other sta(cid:64)eholders may disrupt our ability to sell our assets in (cid:45)ussia. Continued escalation of geopolitical tensions related to
the conflict could result in the loss of property(cid:11) supply chain disruptions(cid:11) significant inflationary pressure on ra(cid:76) material prices
and cost and supply of other resources (such as energy and natural gas)(cid:11) fluctuations in our customers(cid:89) buying patterns given
regional shortages of food ingredients and other factors(cid:11) credit and capital mar(cid:64)et disruption (cid:76)hich could impact our ability to
obtain financing(cid:11) increase in interest rates(cid:11) and adverse foreign e(cid:77)change impacts. (cid:47)hese broader consequences could have a
material adverse effect on our business(cid:11) cash flo(cid:76)(cid:11) financial condition(cid:11) and results of operations.
(cid:47)he international scope of our operations(cid:11) (cid:76)hich includes limited sales of our products to entities located in countries
sub(cid:63)ect to certain economic sanctions administered by the (cid:48).S. Office of Foreign Assets Control(cid:11) and the (cid:48).S. (cid:31)epartment of
State(cid:11) and (cid:47)rade and other applicable national and supranational organi(cid:79)ations (collectively(cid:11) "Sanctions")(cid:11) and operations in
certain countries that are from time to time sub(cid:63)ect to Sanctions(cid:11) including those enacted as a result of the (cid:45)ussia(cid:12)(cid:48)(cid:64)raine
conflict(cid:11) also requires us to maintain internal processes and control procedures. Failure to do so could result in breach by our
employees of various la(cid:76)s and regulations(cid:11) including those relating to money laundering(cid:11) corruption(cid:11) e(cid:77)port control(cid:11) fraud(cid:11)
bribery(cid:11) insider trading(cid:11) antitrust(cid:11) competition(cid:11) and economic sanctions(cid:11) (cid:76)hether due to a lac(cid:64) of integrity or a(cid:76)areness or
other(cid:76)ise. Any such breach could have an adverse effect on our financial condition and result in reputational damage to our
business(cid:11) (cid:76)hich effect may be material.
instability(cid:11) and other factors impacting supply and demand pressures. For e(cid:77)ample(cid:11) (cid:76)e have seen disruptions in the supply of
certain ra(cid:76) materials(cid:11) such as specialty resins(cid:11) and increased price volatility of certain ra(cid:76) materials across many of the regions
in (cid:76)hich (cid:76)e operate since the second half of fiscal year 2021. Additionally(cid:11) changes in international trade policy in the
countries in (cid:76)hich (cid:76)e operate could materially impact the cost and supply of ra(cid:76) materials as duties are assessed on ra(cid:76)
materials used in our production process and global supply of (cid:64)ey ra(cid:76) materials is disrupted. For e(cid:77)ample(cid:11) in 2018(cid:11) the (cid:48).S.
government imposed a 10(cid:4) tariff on all aluminum imports into the (cid:48)nited States from China and in (cid:37)uly 2022(cid:11) the (cid:48).S.
(cid:31)epartment of Commerce announced an investigation to determine (cid:76)hether imports of aluminum from (cid:47)hailand and South
(cid:38)orea circumvented the duties on Chinese aluminum.
(cid:50)hile (cid:76)e have largely been able to successfully manage through these supply disruptions and related price volatility(cid:11)
there is no assurance (cid:76)e (cid:76)ill be able to successfully navigate through any ongoing and future disruptions. Increases in costs and
disruptions in supply can have an adverse effect on our business and financial results. Although (cid:76)e see(cid:64) to mitigate these ris(cid:64)s
through various strategies(cid:11) including by entering into contracts (cid:76)ith certain customers (cid:76)hich permit certain price ad(cid:63)ustments to
reflect increased ra(cid:76) material costs or by other(cid:76)ise see(cid:64)ing to increase our prices to offset increases in ra(cid:76) material costs and
see(cid:64)ing alternative sources of supply for (cid:64)ey ra(cid:76) materials(cid:11) there is no guarantee that (cid:76)e (cid:76)ill be able to anticipate or mitigate
commodity and input price movements or mitigate supply disruptions. In addition(cid:11) there may be delays in ad(cid:63)usting prices to
correspond (cid:76)ith underlying ra(cid:76) material costs and corresponding impacts on our (cid:76)or(cid:64)ing capital and level of indebtedness and
any failure to anticipate or mitigate against such movements could have an adverse effect on our business(cid:11) financial condition(cid:11)
results of operations(cid:11) or cash flo(cid:76)s(cid:11) (cid:76)hich effect may be material.
(cid:17)ommer(cid:39)ia(cid:48) Ris(cid:47)s (cid:62) (cid:36)e are s(cid:57)(cid:38)(cid:46)e(cid:39)(cid:56) (cid:56)o (cid:52)ro(cid:40)(cid:57)(cid:39)(cid:56)io(cid:50)(cid:6) s(cid:57)(cid:52)(cid:52)(cid:48)(cid:61)(cid:6) a(cid:50)(cid:40) o(cid:56)(cid:44)er (cid:39)ommer(cid:39)ia(cid:48) ris(cid:47)s(cid:6) i(cid:50)(cid:39)(cid:48)(cid:57)(cid:40)i(cid:50)(cid:43) (cid:39)o(cid:57)(cid:50)(cid:56)er(cid:52)ar(cid:56)(cid:61) (cid:39)re(cid:40)i(cid:56) ris(cid:47)s(cid:6)
w(cid:44)i(cid:39)(cid:44) ma(cid:61) (cid:38)e exa(cid:39)er(cid:38)a(cid:56)e(cid:40) i(cid:50) (cid:56)imes of e(cid:39)o(cid:50)omi(cid:39) (cid:58)o(cid:48)a(cid:56)i(cid:48)i(cid:56)(cid:61)(cid:8)
(cid:50)e face a number of commercial ris(cid:64)s(cid:11) including (i) operational disruption(cid:11) such as mechanical or technological
failures or forced closures due to pandemics or (cid:76)ar (such as CO(cid:49)I(cid:31)(cid:12)1(cid:24) or the (cid:45)ussia(cid:12)(cid:48)(cid:64)raine conflict)(cid:11) each of (cid:76)hich could(cid:11) in
turn(cid:11) lead to production loss and(cid:14)or increased costs(cid:11) (ii) shortages in manufacturing inputs due to the loss of (cid:64)ey suppliers or
their inability to supply inputs and (iii) ris(cid:64)s associated (cid:76)ith development pro(cid:63)ects (such as cost overruns and delays).
Supply shortages(cid:11) fluctuations in freight costs(cid:11) limitations on shipping capacity(cid:11) or other disruptions in our supply
chain(cid:11) including as a result of sourcing materials from a single supplier or those that may occur related to CO(cid:49)I(cid:31)(cid:12)1(cid:24) or other
natural disasters(cid:11) or (cid:76)ar(cid:11) could affect our ability to obtain timely delivery of ra(cid:76) materials(cid:11) equipment and other supplies(cid:11) and in
turn(cid:11) adversely impact our ability to supply products to our customers. Such disruptions could have an adverse effect on our
business and financial results. In response to the CO(cid:49)I(cid:31)(cid:12)1(cid:24) pandemic(cid:11) (cid:76)e have implemented employee safety measures across
all our supply chain facilities(cid:11) including proper hygiene(cid:11) social distancing and temporary screening (cid:76)hich at a minimum are in
compliance (cid:76)ith local government regulations. (cid:47)hese measures may not be sufficient to prevent the spread of CO(cid:49)I(cid:31)(cid:12)1(cid:24)
among our employees. Illness(cid:11) travel restrictions(cid:11) absenteeism(cid:11) or other (cid:76)or(cid:64)force disruptions could negatively impact our
supply chain(cid:11) manufacturing(cid:11) distribution(cid:11) or other business activities.
Additionally(cid:11) the insolvency of(cid:11) or contractual default by(cid:11) any of our customers(cid:11) suppliers(cid:11) and financial institutions(cid:11)
such as ban(cid:64)s and insurance providers(cid:11) may have a significant adverse effect on our operations and financial condition. Such
ris(cid:64)s are e(cid:77)acerbated in times of economic volatility (such as economic volatility caused by CO(cid:49)I(cid:31)(cid:12)1(cid:24) and the (cid:45)ussia(cid:12)(cid:48)(cid:64)raine
conflict)(cid:11) either globally or in the geographies and industries in (cid:76)hich our customers operate. If a counterparty defaults on a
payment obligation to us(cid:11) (cid:76)e may be unable to collect the amounts o(cid:76)ed and some or all of these outstanding amounts may
need to be (cid:76)ritten off. If a counterparty becomes insolvent or is other(cid:76)ise unable to meet its obligations in connection (cid:76)ith a
particular pro(cid:63)ect(cid:11) (cid:76)e may need to find a replacement to fulfill that party(cid:89)s obligations or(cid:11) alternatively(cid:11) fulfill those obligations
ourselves(cid:11) (cid:76)hich is li(cid:64)ely to be more e(cid:77)pensive. (cid:47)he occurrence of any of these ris(cid:64)s(cid:11) including any default by our
counterparties(cid:11) could have an adverse effect on our business(cid:11) financial condition(cid:11) results of operations(cid:11) or cash flo(cid:76)s(cid:11) (cid:76)hich
effect may be material and result in a competitive disadvantage.
Raw (cid:27)a(cid:56)eria(cid:48)s (cid:62) (cid:30)ri(cid:39)e f(cid:48)(cid:57)(cid:39)(cid:56)(cid:57)a(cid:56)io(cid:50)s or s(cid:44)or(cid:56)a(cid:43)es i(cid:50) (cid:56)(cid:44)e a(cid:58)ai(cid:48)a(cid:38)i(cid:48)i(cid:56)(cid:61) of raw ma(cid:56)eria(cid:48)s(cid:6) e(cid:50)er(cid:43)(cid:61) a(cid:50)(cid:40) o(cid:56)(cid:44)er i(cid:50)(cid:52)(cid:57)(cid:56)s (cid:39)o(cid:57)(cid:48)(cid:40)
a(cid:40)(cid:58)erse(cid:48)(cid:61) affe(cid:39)(cid:56) o(cid:57)r (cid:38)(cid:57)si(cid:50)ess(cid:8)
(cid:21)(cid:48)o(cid:38)a(cid:48) (cid:22)ea(cid:48)(cid:56)(cid:44) (cid:29)(cid:57)(cid:56)(cid:38)rea(cid:47)s (cid:62) (cid:29)(cid:57)r (cid:38)(cid:57)si(cid:50)ess a(cid:50)(cid:40) o(cid:52)era(cid:56)io(cid:50)s ma(cid:61) (cid:38)e a(cid:40)(cid:58)erse(cid:48)(cid:61) affe(cid:39)(cid:56)e(cid:40) (cid:38)(cid:61) (cid:56)(cid:44)e o(cid:50)(cid:43)oi(cid:50)(cid:43) (cid:17)oro(cid:50)a(cid:58)ir(cid:57)s (cid:52)a(cid:50)(cid:40)emi(cid:39)
(cid:4)(cid:2)(cid:17)(cid:29)(cid:35)(cid:23)(cid:18)(cid:7)(cid:11)(cid:14)(cid:2)(cid:5) or o(cid:56)(cid:44)er simi(cid:48)ar (cid:52)a(cid:50)(cid:40)emi(cid:39)s(cid:8)
As a manufacturer of pac(cid:64)aging products(cid:11) our sales and profitability are dependent on the availability and cost of ra(cid:76)
materials and labor and other inputs(cid:11) including energy. All of the ra(cid:76) materials (cid:76)e use are purchased from third parties and our
primary inputs include polymer resins and films(cid:11) in(cid:64)s and solvents(cid:11) aluminum(cid:11) and fiber(cid:12)based carton board. (cid:43)rices for these
ra(cid:76) materials are sub(cid:63)ect to substantial fluctuations that are beyond our control due to factors such as changing economic
conditions(cid:11) pandemics(cid:11) such as CO(cid:49)I(cid:31)(cid:12)1(cid:24)(cid:11) currency and commodity price fluctuations(cid:11) resource availability(cid:11) transportation
costs(cid:11) (cid:76)eather conditions and natural disasters(cid:11) geopolitical ris(cid:64)s(cid:11) including (cid:76)ar (such as the (cid:45)ussia(cid:12)(cid:48)(cid:64)raine conflict) and
Our business and financial results may be negatively impacted by outbrea(cid:64)s of contagious diseases(cid:11) including
CO(cid:49)I(cid:31)(cid:12)1(cid:24). As a result of CO(cid:49)I(cid:31)(cid:12)1(cid:24)(cid:11) governmental authorities have implemented and(cid:11) in certain regions(cid:11) are continuing to
implement numerous measures to try to contain the virus(cid:11) such as travel bans and restrictions(cid:11) limitations on gatherings(cid:11)
quarantines(cid:11) shelter(cid:12)in(cid:12)place orders(cid:11) and business shutdo(cid:76)ns. (cid:40)easures providing for business shutdo(cid:76)ns generally e(cid:77)clude
essential services and the critical infrastructure supporting the essential services. (cid:50)e have e(cid:77)perienced minimal disruptions to
our operations to date as (cid:76)e have largely been deemed as providing essential services.
15
16
Amcor Annual Report 2022
Form 10-K
17
CO(cid:49)I(cid:31)(cid:12)1(cid:24) has in the past(cid:11) and could in the future result in the temporary closure of our facilities(cid:11) the facilities of our
(cid:76)hen it is considered probable that (cid:76)e have some liability and the amount can be reasonably estimated. (cid:35)o(cid:76)ever(cid:11) because the
suppliers(cid:11) or other suppliers in our supply chain. In limited cases to date(cid:11) certain customers have shut do(cid:76)n their operations
temporarily to deal (cid:76)ith the outbrea(cid:64) (cid:76)ithin their facilities(cid:11) (cid:76)hich has impacted their demand(cid:11) and (cid:76)e may continue to
e(cid:77)perience volatility in demand from temporary customer shutdo(cid:76)ns. In addition(cid:11) CO(cid:49)I(cid:31)(cid:12)1(cid:24) has significantly impacted and
may further impact the economies and financial mar(cid:64)ets of affected countries(cid:11) including negatively impacting economic
gro(cid:76)th(cid:11) the proper functioning of capital mar(cid:64)ets(cid:11) supply chains(cid:11) foreign currency e(cid:77)change rates and interest rates. CO(cid:49)I(cid:31)(cid:12)1(cid:24)
may result in a prolonged economic do(cid:76)nturn(cid:11) such as increased unemployment(cid:11) decreases in capital spending(cid:11) business
shutdo(cid:76)ns(cid:11) or economic recessions(cid:11) (cid:76)hich could negatively affect demand for our customers(cid:89) products. (cid:31)espite our efforts to
manage these impacts(cid:11) the e(cid:77)tent to (cid:76)hich CO(cid:49)I(cid:31)(cid:12)1(cid:24) or other pandemics impact our business and operations(cid:11) including our
ability to secure financing at attractive rates(cid:11) is un(cid:64)no(cid:76)n and the effect could be material.
(cid:15)(cid:56)(cid:56)ra(cid:39)(cid:56)i(cid:50)(cid:43) a(cid:50)(cid:40) Re(cid:56)ai(cid:50)i(cid:50)(cid:43) S(cid:47)i(cid:48)(cid:48)e(cid:40) (cid:36)or(cid:47)for(cid:39)e (cid:62) (cid:23)f we are (cid:57)(cid:50)a(cid:38)(cid:48)e (cid:56)o a(cid:56)(cid:56)ra(cid:39)(cid:56) a(cid:50)(cid:40) re(cid:56)ai(cid:50) o(cid:57)r (cid:43)(cid:48)o(cid:38)a(cid:48) exe(cid:39)(cid:57)(cid:56)i(cid:58)e ma(cid:50)a(cid:43)eme(cid:50)(cid:56) (cid:56)eam
a(cid:50)(cid:40) o(cid:57)r s(cid:47)i(cid:48)(cid:48)e(cid:40) wor(cid:47)for(cid:39)e(cid:6) we ma(cid:61) (cid:38)e a(cid:40)(cid:58)erse(cid:48)(cid:61) affe(cid:39)(cid:56)e(cid:40)(cid:8)
Our continued success depends on our ability to identify(cid:11) attract(cid:11) develop(cid:11) and retain s(cid:64)illed personnel in our global
e(cid:77)ecutive management team and our operations. (cid:50)e focus on our talent acquisition processes(cid:11) as (cid:76)ell as our onboarding and
talent and leadership programs(cid:11) to ensure our (cid:64)ey ne(cid:76) hires and s(cid:64)illed personnel(cid:89)s efficiency and effectiveness aligns (cid:76)ith
Amcor(cid:89)s values and (cid:76)ays of (cid:76)or(cid:64)ing. (cid:35)o(cid:76)ever(cid:11) any failure to successfully transition (cid:64)ey ne(cid:76) hires and retain our s(cid:64)illed
personnel in any of our operations and our global e(cid:77)ecutive management team(cid:11) could impact our ability to e(cid:77)ecute on our
strategic plans(cid:11) ma(cid:64)e it difficult to meet our performance ob(cid:63)ectives and be disruptive to our business.
(cid:50)e are also impacted by regional labor shortages(cid:11) inflationary pressures on (cid:76)ages(cid:11) and an increasingly competitive
labor mar(cid:64)et. (cid:50)hile (cid:76)e have been successful to date in responding to regional labor shortages and maintaining plans for
continuity of succession(cid:11) there can be no assurance that (cid:76)e (cid:76)ill be able to manage through future labor shortages or recruit(cid:11)
develop(cid:11) assimilate(cid:11) motivate(cid:11) and retain employees in the future (cid:76)ho actively promote and meet the standards of our culture.
(cid:29)(cid:52)era(cid:56)io(cid:50)a(cid:48) (cid:19)(cid:22)S Ris(cid:47)s (cid:62) (cid:36)e are s(cid:57)(cid:38)(cid:46)e(cid:39)(cid:56) (cid:56)o (cid:39)os(cid:56)s a(cid:50)(cid:40) (cid:48)ia(cid:38)i(cid:48)i(cid:56)ies re(cid:48)a(cid:56)e(cid:40) (cid:56)o (cid:39)(cid:57)rre(cid:50)(cid:56) a(cid:50)(cid:40) f(cid:57)(cid:56)(cid:57)re e(cid:50)(cid:58)iro(cid:50)me(cid:50)(cid:56)(cid:6) (cid:44)ea(cid:48)(cid:56)(cid:44) a(cid:50)(cid:40)
safe(cid:56)(cid:61) (cid:4)(cid:2)(cid:19)(cid:22)S(cid:2)(cid:5) (cid:48)aws a(cid:50)(cid:40) re(cid:43)(cid:57)(cid:48)a(cid:56)io(cid:50)s(cid:6) as we(cid:48)(cid:48) as (cid:39)(cid:44)a(cid:50)(cid:43)es i(cid:50) (cid:56)(cid:44)e (cid:43)(cid:48)o(cid:38)a(cid:48) (cid:39)(cid:48)ima(cid:56)e(cid:6) (cid:56)(cid:44)a(cid:56) (cid:39)o(cid:57)(cid:48)(cid:40) a(cid:40)(cid:58)erse(cid:48)(cid:61) affe(cid:39)(cid:56) o(cid:57)r (cid:38)(cid:57)si(cid:50)ess(cid:8)
(cid:50)e are required to comply (cid:76)ith E(cid:35)S la(cid:76)s(cid:11) rules(cid:11) and regulations in each of the countries in (cid:76)hich (cid:76)e operate and do
business. Additionally(cid:11) many of our products come into contact (cid:76)ith the healthcare products and food and beverages they
pac(cid:64)age and therefore(cid:11) (cid:76)e are also sub(cid:63)ect to certain local and international standards related to such products. Compliance (cid:76)ith
these la(cid:76)s and regulations can require significant e(cid:77)penditure of financial and employee resources.
In addition(cid:11) changes to such la(cid:76)s(cid:11) regulations and standards are made or proposed regularly(cid:11) and some of the
proposals(cid:11) if adopted(cid:11) might(cid:11) directly or indirectly(cid:11) result in a material reduction in the operating results of one or more of our
operating units. For instance(cid:11) an increase in legislation (cid:76)ith respect to litter related to plastic pac(cid:64)aging or related recycling
programs may cause legislators in some countries and regions in (cid:76)hich our products are sold to consider banning or limiting
certain pac(cid:64)aging formats or materials. Additionally(cid:11) increased regulation of emissions lin(cid:64)ed to climate change(cid:11) including
greenhouse gas (carbon) emissions and other climate(cid:12)related regulations(cid:11) could potentially increase the cost of our operations
due to increased costs of compliance ((cid:76)hich may not be recoverable through ad(cid:63)ustment of prices)(cid:11) increased cost of fossil fuel(cid:12)
based inputs and increased cost of energy intensive ra(cid:76) material inputs. (cid:35)o(cid:76)ever(cid:11) any such changes are uncertain(cid:11) and (cid:76)e
cannot predict the amount of additional capital e(cid:77)penses or operating e(cid:77)penses that (cid:76)ould be necessary for compliance.
Federal(cid:11) state(cid:11) provincial(cid:11) and local la(cid:76)s and requirements pertaining to (cid:76)or(cid:64)place health and safety conditions are
significant factors in our business to assure our people at all locations are able to go home safely every day. Changes to these
la(cid:76)s and requirements may result in additional costs and actions across the affected country and(cid:14)or region. (cid:49)arious government
agencies may promulgate ne(cid:76) or modified legislation(cid:11) and implement special emphasis programs and enforcement actions that
could impact specific Company operations covered by the respective program.
Federal(cid:11) state(cid:11) provincial(cid:11) foreign(cid:11) and local environmental requirements relating to air(cid:11) soil(cid:11) and (cid:76)ater quality(cid:11)
handling(cid:11) discharge(cid:11) storage(cid:11) and disposal of a variety of substances(cid:11) and climate change are also significant factors in our
business and changes to such requirements generally result in an increase to our costs of operations. (cid:50)e may be found to have
environmental liability for the costs of remediating soil or (cid:76)ater that is(cid:11) or (cid:76)as(cid:11) contaminated by us or a third party at various
facilities (cid:76)e o(cid:76)n(cid:11) used(cid:11) or operate (including facilities that may be acquired by us in the future). Legal proceedings may result
in the imposition of fines or penalties(cid:11) as (cid:76)ell as mandated remediation programs(cid:11) that require substantial(cid:11) and in some
instances(cid:11) unplanned capital e(cid:77)penditure.
e(cid:77)tent of potential environmental damage(cid:11) and the e(cid:77)tent of our liability for such damage(cid:11) is usually difficult to assess and may
only be ascertained over a long period of time(cid:11) our actual liability in such cases may end up being substantially higher than the
currently provisioned amount. Accordingly(cid:11) additional charges could be incurred that (cid:76)ould have an adverse effect on our
operating results and financial position(cid:11) (cid:76)hich may be material.
(cid:47)he effects of climate change and greenhouse gas effects may adversely affect our business. A number of
governmental bodies have introduced(cid:11) or are contemplating introducing(cid:11) regulatory change to address the impacts of climate
change(cid:11) (cid:76)hich(cid:11) (cid:76)here implemented(cid:11) may have adverse impacts on our operations or financial results.
(cid:26)a(cid:38)or (cid:18)is(cid:52)(cid:57)(cid:56)es (cid:62) (cid:36)e are s(cid:57)(cid:38)(cid:46)e(cid:39)(cid:56) (cid:56)o (cid:56)(cid:44)e ris(cid:47) of (cid:48)a(cid:38)or (cid:40)is(cid:52)(cid:57)(cid:56)es(cid:6) w(cid:44)i(cid:39)(cid:44) (cid:39)o(cid:57)(cid:48)(cid:40) a(cid:40)(cid:58)erse(cid:48)(cid:61) affe(cid:39)(cid:56) o(cid:57)r (cid:38)(cid:57)si(cid:50)ess(cid:8)
Although (cid:76)e have not e(cid:77)perienced any significant labor disputes in recent years(cid:11) there can be no assurance that (cid:76)e (cid:76)ill
not e(cid:77)perience labor disputes in the future(cid:11) including protests and stri(cid:64)es(cid:11) (cid:76)hich could disrupt our business operations and have
an adverse effect on our business and results of operation. Although (cid:76)e consider our relations (cid:76)ith our employees to be good(cid:11)
there can be no assurance that (cid:76)e (cid:76)ill be able to maintain a satisfactory (cid:76)or(cid:64)ing relationship (cid:76)ith our employees in the future.
(cid:17)(cid:48)ima(cid:56)e (cid:17)(cid:44)a(cid:50)(cid:43)e (cid:7) (cid:29)(cid:57)r (cid:38)(cid:57)si(cid:50)ess is s(cid:57)(cid:38)(cid:46)e(cid:39)(cid:56) (cid:56)o ris(cid:47)s re(cid:48)a(cid:56)e(cid:40) (cid:56)o (cid:39)(cid:48)ima(cid:56)e (cid:39)(cid:44)a(cid:50)(cid:43)e w(cid:44)i(cid:39)(cid:44) (cid:39)o(cid:57)(cid:48)(cid:40) (cid:50)e(cid:43)a(cid:56)i(cid:58)e(cid:48)(cid:61) im(cid:52)a(cid:39)(cid:56) o(cid:57)r (cid:38)(cid:57)si(cid:50)ess
o(cid:52)era(cid:56)io(cid:50)s a(cid:50)(cid:40) fi(cid:50)a(cid:50)(cid:39)ia(cid:48) res(cid:57)(cid:48)(cid:56)s(cid:8)
Climate change may have a progressively adverse impact on our business and those of our customers(cid:11) suppliers(cid:11) and
partners. (cid:40)any of the geographic areas (cid:76)here our production is located and (cid:76)here (cid:76)e conduct business may be affected by
natural disasters(cid:11) including earthqua(cid:64)es(cid:11) sno(cid:76)storms(cid:11) hurricanes(cid:11) flooding(cid:11) forest fires(cid:11) and drought. Such events may have a
physical impact on our facilities(cid:11) inventory(cid:11) suppliers(cid:11) and equipment and any unplanned do(cid:76)ntime at any of our facilities could
result in unabsorbed costs that could negatively impact our results of operations for the period in (cid:76)hich it e(cid:77)perienced the
do(cid:76)ntime. Longer(cid:12)term climate change patterns could significantly alter customer demand (cid:76)hich is especially true for
customers (cid:76)ho rely on supply chains routinely impacted by (cid:76)eather. For e(cid:77)ample(cid:11) agricultural supply chains (cid:76)ould be
impacted by increased levels of drought or flooding and customers in coastal regions (cid:76)ould be impacted by frequent flooding.
Information (cid:44)echnology and Cybersecurity Ris(cid:61)s
(cid:23)(cid:50)forma(cid:56)io(cid:50) Te(cid:39)(cid:44)(cid:50)o(cid:48)o(cid:43)(cid:61) (cid:62) (cid:15) fai(cid:48)(cid:57)re or (cid:40)isr(cid:57)(cid:52)(cid:56)io(cid:50) i(cid:50) o(cid:57)r i(cid:50)forma(cid:56)io(cid:50) (cid:56)e(cid:39)(cid:44)(cid:50)o(cid:48)o(cid:43)(cid:61) s(cid:61)s(cid:56)ems (cid:39)o(cid:57)(cid:48)(cid:40) (cid:40)isr(cid:57)(cid:52)(cid:56) o(cid:57)r o(cid:52)era(cid:56)io(cid:50)s(cid:6)
(cid:39)om(cid:52)romise (cid:39)(cid:57)s(cid:56)omer(cid:6) em(cid:52)(cid:48)o(cid:61)ee(cid:6) s(cid:57)(cid:52)(cid:52)(cid:48)ier(cid:6) a(cid:50)(cid:40) o(cid:56)(cid:44)er (cid:40)a(cid:56)a(cid:6) a(cid:50)(cid:40) (cid:39)o(cid:57)(cid:48)(cid:40) (cid:50)e(cid:43)a(cid:56)i(cid:58)e(cid:48)(cid:61) affe(cid:39)(cid:56) o(cid:57)r (cid:38)(cid:57)si(cid:50)ess(cid:8)
(cid:50)e rely on the successful and uninterrupted functioning of our information technology and control systems to securely
manage operations and various business functions(cid:11) and on various technologies to process(cid:11) store(cid:11) and report information about
our business(cid:11) and to interact (cid:76)ith customers(cid:11) suppliers(cid:11) and employees around the (cid:76)orld. In addition(cid:11) our information systems
increasingly rely on cloud solutions (cid:76)hich require different security measures. (cid:47)hese measures cover technical changes to our
net(cid:76)or(cid:64) security(cid:11) organi(cid:79)ation(cid:11) and governance changes as (cid:76)ell as alignment of third(cid:12)party suppliers on mar(cid:64)et standards. As
(cid:76)ith all information technology systems(cid:11) our systems may be susceptible to damage(cid:11) disruption(cid:11) information loss or shutdo(cid:76)n
due to a variety of factors including po(cid:76)er outages(cid:11) failures during the process of upgrading or replacing soft(cid:76)are(cid:11) hard(cid:76)are
failures(cid:11) computer viruses(cid:11) catastrophic events(cid:11) telecommunications failures(cid:11) user errors(cid:11) unauthori(cid:79)ed access(cid:11) and malicious or
accidental destruction(cid:11) or theft of information or functionality.
(cid:17)(cid:61)(cid:38)erse(cid:39)(cid:57)ri(cid:56)(cid:61) Ris(cid:47) (cid:62) T(cid:44)e (cid:40)isr(cid:57)(cid:52)(cid:56)io(cid:50) of o(cid:57)r o(cid:52)era(cid:56)io(cid:50)s or ris(cid:47) of (cid:48)oss of o(cid:57)r se(cid:50)si(cid:56)i(cid:58)e (cid:38)(cid:57)si(cid:50)ess i(cid:50)forma(cid:56)io(cid:50) (cid:39)o(cid:57)(cid:48)(cid:40) (cid:50)e(cid:43)a(cid:56)i(cid:58)e(cid:48)(cid:61)
im(cid:52)a(cid:39)(cid:56) o(cid:57)r fi(cid:50)a(cid:50)(cid:39)ia(cid:48) (cid:39)o(cid:50)(cid:40)i(cid:56)io(cid:50) a(cid:50)(cid:40) res(cid:57)(cid:48)(cid:56)s of o(cid:52)era(cid:56)io(cid:50)s(cid:8)
Increased cyber(cid:12)attac(cid:64)s(cid:11) including computer viruses(cid:11) ransom(cid:76)are(cid:11) unauthori(cid:79)ed access attempts(cid:11) phishing(cid:11) hac(cid:64)ing(cid:11)
and other types of attac(cid:64)s pose a ris(cid:64) to the security and availability of our information technology systems(cid:11) including those
provided by third parties. (cid:50)e have e(cid:77)perienced and e(cid:77)pect to continue to e(cid:77)perience actual and attempted cyber(cid:12)attac(cid:64)s of our
information technology systems and net(cid:76)or(cid:64)s. (cid:34)eopolitical turmoil(cid:11) including as a result of the (cid:45)ussia(cid:12)(cid:48)(cid:64)raine conflict(cid:11)
heightens the ris(cid:64) of cyber(cid:12)attac(cid:64)s. (cid:50)hile (cid:76)e have operational safeguards in place to detect and prevent cyber(cid:12)attac(cid:64)s and to
date have not e(cid:77)perienced any significant impacts(cid:11) our safeguards may not al(cid:76)ays be able to prevent a cyber(cid:12)attac(cid:64) from
impacting our systems (cid:76)hich could have a material impact on our business(cid:11) financial condition(cid:11) results of operations(cid:11) or cash
flo(cid:76)s. In addition(cid:11) our customers and suppliers are susceptible to cyber(cid:12)attac(cid:64)s and disruption to their information technology
systems could result in reduced demand for our products or limit our ability to supply our products.
(cid:50)e have incurred in the past(cid:11) and may incur in the future(cid:11) fines(cid:11) penalties(cid:11) and legal costs relating to environmental
matters(cid:11) and costs relating to the damage of natural resources(cid:11) lost property values(cid:11) and to(cid:77)ic tort claims. (cid:43)rovisions are raised
(cid:50)e also maintain and have access to sensitive(cid:11) confidential or personal data or information that is sub(cid:63)ect to privacy
and security la(cid:76)s(cid:11) regulations(cid:11) and customer controls. (cid:31)espite our efforts to protect such information(cid:11) our facilities and systems
17
Amcor Annual Report 2022
18
17
Form 10-K
18
CO(cid:49)I(cid:31)(cid:12)1(cid:24) has in the past(cid:11) and could in the future result in the temporary closure of our facilities(cid:11) the facilities of our
suppliers(cid:11) or other suppliers in our supply chain. In limited cases to date(cid:11) certain customers have shut do(cid:76)n their operations
temporarily to deal (cid:76)ith the outbrea(cid:64) (cid:76)ithin their facilities(cid:11) (cid:76)hich has impacted their demand(cid:11) and (cid:76)e may continue to
e(cid:77)perience volatility in demand from temporary customer shutdo(cid:76)ns. In addition(cid:11) CO(cid:49)I(cid:31)(cid:12)1(cid:24) has significantly impacted and
may further impact the economies and financial mar(cid:64)ets of affected countries(cid:11) including negatively impacting economic
gro(cid:76)th(cid:11) the proper functioning of capital mar(cid:64)ets(cid:11) supply chains(cid:11) foreign currency e(cid:77)change rates and interest rates. CO(cid:49)I(cid:31)(cid:12)1(cid:24)
may result in a prolonged economic do(cid:76)nturn(cid:11) such as increased unemployment(cid:11) decreases in capital spending(cid:11) business
shutdo(cid:76)ns(cid:11) or economic recessions(cid:11) (cid:76)hich could negatively affect demand for our customers(cid:89) products. (cid:31)espite our efforts to
manage these impacts(cid:11) the e(cid:77)tent to (cid:76)hich CO(cid:49)I(cid:31)(cid:12)1(cid:24) or other pandemics impact our business and operations(cid:11) including our
ability to secure financing at attractive rates(cid:11) is un(cid:64)no(cid:76)n and the effect could be material.
(cid:15)(cid:56)(cid:56)ra(cid:39)(cid:56)i(cid:50)(cid:43) a(cid:50)(cid:40) Re(cid:56)ai(cid:50)i(cid:50)(cid:43) S(cid:47)i(cid:48)(cid:48)e(cid:40) (cid:36)or(cid:47)for(cid:39)e (cid:62) (cid:23)f we are (cid:57)(cid:50)a(cid:38)(cid:48)e (cid:56)o a(cid:56)(cid:56)ra(cid:39)(cid:56) a(cid:50)(cid:40) re(cid:56)ai(cid:50) o(cid:57)r (cid:43)(cid:48)o(cid:38)a(cid:48) exe(cid:39)(cid:57)(cid:56)i(cid:58)e ma(cid:50)a(cid:43)eme(cid:50)(cid:56) (cid:56)eam
a(cid:50)(cid:40) o(cid:57)r s(cid:47)i(cid:48)(cid:48)e(cid:40) wor(cid:47)for(cid:39)e(cid:6) we ma(cid:61) (cid:38)e a(cid:40)(cid:58)erse(cid:48)(cid:61) affe(cid:39)(cid:56)e(cid:40)(cid:8)
Our continued success depends on our ability to identify(cid:11) attract(cid:11) develop(cid:11) and retain s(cid:64)illed personnel in our global
e(cid:77)ecutive management team and our operations. (cid:50)e focus on our talent acquisition processes(cid:11) as (cid:76)ell as our onboarding and
talent and leadership programs(cid:11) to ensure our (cid:64)ey ne(cid:76) hires and s(cid:64)illed personnel(cid:89)s efficiency and effectiveness aligns (cid:76)ith
Amcor(cid:89)s values and (cid:76)ays of (cid:76)or(cid:64)ing. (cid:35)o(cid:76)ever(cid:11) any failure to successfully transition (cid:64)ey ne(cid:76) hires and retain our s(cid:64)illed
personnel in any of our operations and our global e(cid:77)ecutive management team(cid:11) could impact our ability to e(cid:77)ecute on our
strategic plans(cid:11) ma(cid:64)e it difficult to meet our performance ob(cid:63)ectives and be disruptive to our business.
(cid:50)e are also impacted by regional labor shortages(cid:11) inflationary pressures on (cid:76)ages(cid:11) and an increasingly competitive
labor mar(cid:64)et. (cid:50)hile (cid:76)e have been successful to date in responding to regional labor shortages and maintaining plans for
continuity of succession(cid:11) there can be no assurance that (cid:76)e (cid:76)ill be able to manage through future labor shortages or recruit(cid:11)
develop(cid:11) assimilate(cid:11) motivate(cid:11) and retain employees in the future (cid:76)ho actively promote and meet the standards of our culture.
(cid:29)(cid:52)era(cid:56)io(cid:50)a(cid:48) (cid:19)(cid:22)S Ris(cid:47)s (cid:62) (cid:36)e are s(cid:57)(cid:38)(cid:46)e(cid:39)(cid:56) (cid:56)o (cid:39)os(cid:56)s a(cid:50)(cid:40) (cid:48)ia(cid:38)i(cid:48)i(cid:56)ies re(cid:48)a(cid:56)e(cid:40) (cid:56)o (cid:39)(cid:57)rre(cid:50)(cid:56) a(cid:50)(cid:40) f(cid:57)(cid:56)(cid:57)re e(cid:50)(cid:58)iro(cid:50)me(cid:50)(cid:56)(cid:6) (cid:44)ea(cid:48)(cid:56)(cid:44) a(cid:50)(cid:40)
safe(cid:56)(cid:61) (cid:4)(cid:2)(cid:19)(cid:22)S(cid:2)(cid:5) (cid:48)aws a(cid:50)(cid:40) re(cid:43)(cid:57)(cid:48)a(cid:56)io(cid:50)s(cid:6) as we(cid:48)(cid:48) as (cid:39)(cid:44)a(cid:50)(cid:43)es i(cid:50) (cid:56)(cid:44)e (cid:43)(cid:48)o(cid:38)a(cid:48) (cid:39)(cid:48)ima(cid:56)e(cid:6) (cid:56)(cid:44)a(cid:56) (cid:39)o(cid:57)(cid:48)(cid:40) a(cid:40)(cid:58)erse(cid:48)(cid:61) affe(cid:39)(cid:56) o(cid:57)r (cid:38)(cid:57)si(cid:50)ess(cid:8)
(cid:50)e are required to comply (cid:76)ith E(cid:35)S la(cid:76)s(cid:11) rules(cid:11) and regulations in each of the countries in (cid:76)hich (cid:76)e operate and do
business. Additionally(cid:11) many of our products come into contact (cid:76)ith the healthcare products and food and beverages they
pac(cid:64)age and therefore(cid:11) (cid:76)e are also sub(cid:63)ect to certain local and international standards related to such products. Compliance (cid:76)ith
these la(cid:76)s and regulations can require significant e(cid:77)penditure of financial and employee resources.
In addition(cid:11) changes to such la(cid:76)s(cid:11) regulations and standards are made or proposed regularly(cid:11) and some of the
proposals(cid:11) if adopted(cid:11) might(cid:11) directly or indirectly(cid:11) result in a material reduction in the operating results of one or more of our
operating units. For instance(cid:11) an increase in legislation (cid:76)ith respect to litter related to plastic pac(cid:64)aging or related recycling
programs may cause legislators in some countries and regions in (cid:76)hich our products are sold to consider banning or limiting
certain pac(cid:64)aging formats or materials. Additionally(cid:11) increased regulation of emissions lin(cid:64)ed to climate change(cid:11) including
greenhouse gas (carbon) emissions and other climate(cid:12)related regulations(cid:11) could potentially increase the cost of our operations
due to increased costs of compliance ((cid:76)hich may not be recoverable through ad(cid:63)ustment of prices)(cid:11) increased cost of fossil fuel(cid:12)
based inputs and increased cost of energy intensive ra(cid:76) material inputs. (cid:35)o(cid:76)ever(cid:11) any such changes are uncertain(cid:11) and (cid:76)e
cannot predict the amount of additional capital e(cid:77)penses or operating e(cid:77)penses that (cid:76)ould be necessary for compliance.
Federal(cid:11) state(cid:11) provincial(cid:11) and local la(cid:76)s and requirements pertaining to (cid:76)or(cid:64)place health and safety conditions are
significant factors in our business to assure our people at all locations are able to go home safely every day. Changes to these
la(cid:76)s and requirements may result in additional costs and actions across the affected country and(cid:14)or region. (cid:49)arious government
agencies may promulgate ne(cid:76) or modified legislation(cid:11) and implement special emphasis programs and enforcement actions that
could impact specific Company operations covered by the respective program.
Federal(cid:11) state(cid:11) provincial(cid:11) foreign(cid:11) and local environmental requirements relating to air(cid:11) soil(cid:11) and (cid:76)ater quality(cid:11)
handling(cid:11) discharge(cid:11) storage(cid:11) and disposal of a variety of substances(cid:11) and climate change are also significant factors in our
business and changes to such requirements generally result in an increase to our costs of operations. (cid:50)e may be found to have
environmental liability for the costs of remediating soil or (cid:76)ater that is(cid:11) or (cid:76)as(cid:11) contaminated by us or a third party at various
facilities (cid:76)e o(cid:76)n(cid:11) used(cid:11) or operate (including facilities that may be acquired by us in the future). Legal proceedings may result
in the imposition of fines or penalties(cid:11) as (cid:76)ell as mandated remediation programs(cid:11) that require substantial(cid:11) and in some
instances(cid:11) unplanned capital e(cid:77)penditure.
(cid:76)hen it is considered probable that (cid:76)e have some liability and the amount can be reasonably estimated. (cid:35)o(cid:76)ever(cid:11) because the
e(cid:77)tent of potential environmental damage(cid:11) and the e(cid:77)tent of our liability for such damage(cid:11) is usually difficult to assess and may
only be ascertained over a long period of time(cid:11) our actual liability in such cases may end up being substantially higher than the
currently provisioned amount. Accordingly(cid:11) additional charges could be incurred that (cid:76)ould have an adverse effect on our
operating results and financial position(cid:11) (cid:76)hich may be material.
(cid:47)he effects of climate change and greenhouse gas effects may adversely affect our business. A number of
governmental bodies have introduced(cid:11) or are contemplating introducing(cid:11) regulatory change to address the impacts of climate
change(cid:11) (cid:76)hich(cid:11) (cid:76)here implemented(cid:11) may have adverse impacts on our operations or financial results.
(cid:26)a(cid:38)or (cid:18)is(cid:52)(cid:57)(cid:56)es (cid:62) (cid:36)e are s(cid:57)(cid:38)(cid:46)e(cid:39)(cid:56) (cid:56)o (cid:56)(cid:44)e ris(cid:47) of (cid:48)a(cid:38)or (cid:40)is(cid:52)(cid:57)(cid:56)es(cid:6) w(cid:44)i(cid:39)(cid:44) (cid:39)o(cid:57)(cid:48)(cid:40) a(cid:40)(cid:58)erse(cid:48)(cid:61) affe(cid:39)(cid:56) o(cid:57)r (cid:38)(cid:57)si(cid:50)ess(cid:8)
Although (cid:76)e have not e(cid:77)perienced any significant labor disputes in recent years(cid:11) there can be no assurance that (cid:76)e (cid:76)ill
not e(cid:77)perience labor disputes in the future(cid:11) including protests and stri(cid:64)es(cid:11) (cid:76)hich could disrupt our business operations and have
an adverse effect on our business and results of operation. Although (cid:76)e consider our relations (cid:76)ith our employees to be good(cid:11)
there can be no assurance that (cid:76)e (cid:76)ill be able to maintain a satisfactory (cid:76)or(cid:64)ing relationship (cid:76)ith our employees in the future.
(cid:17)(cid:48)ima(cid:56)e (cid:17)(cid:44)a(cid:50)(cid:43)e (cid:7) (cid:29)(cid:57)r (cid:38)(cid:57)si(cid:50)ess is s(cid:57)(cid:38)(cid:46)e(cid:39)(cid:56) (cid:56)o ris(cid:47)s re(cid:48)a(cid:56)e(cid:40) (cid:56)o (cid:39)(cid:48)ima(cid:56)e (cid:39)(cid:44)a(cid:50)(cid:43)e w(cid:44)i(cid:39)(cid:44) (cid:39)o(cid:57)(cid:48)(cid:40) (cid:50)e(cid:43)a(cid:56)i(cid:58)e(cid:48)(cid:61) im(cid:52)a(cid:39)(cid:56) o(cid:57)r (cid:38)(cid:57)si(cid:50)ess
o(cid:52)era(cid:56)io(cid:50)s a(cid:50)(cid:40) fi(cid:50)a(cid:50)(cid:39)ia(cid:48) res(cid:57)(cid:48)(cid:56)s(cid:8)
Climate change may have a progressively adverse impact on our business and those of our customers(cid:11) suppliers(cid:11) and
partners. (cid:40)any of the geographic areas (cid:76)here our production is located and (cid:76)here (cid:76)e conduct business may be affected by
natural disasters(cid:11) including earthqua(cid:64)es(cid:11) sno(cid:76)storms(cid:11) hurricanes(cid:11) flooding(cid:11) forest fires(cid:11) and drought. Such events may have a
physical impact on our facilities(cid:11) inventory(cid:11) suppliers(cid:11) and equipment and any unplanned do(cid:76)ntime at any of our facilities could
result in unabsorbed costs that could negatively impact our results of operations for the period in (cid:76)hich it e(cid:77)perienced the
do(cid:76)ntime. Longer(cid:12)term climate change patterns could significantly alter customer demand (cid:76)hich is especially true for
customers (cid:76)ho rely on supply chains routinely impacted by (cid:76)eather. For e(cid:77)ample(cid:11) agricultural supply chains (cid:76)ould be
impacted by increased levels of drought or flooding and customers in coastal regions (cid:76)ould be impacted by frequent flooding.
Information (cid:44)echnology and Cybersecurity Ris(cid:61)s
(cid:23)(cid:50)forma(cid:56)io(cid:50) Te(cid:39)(cid:44)(cid:50)o(cid:48)o(cid:43)(cid:61) (cid:62) (cid:15) fai(cid:48)(cid:57)re or (cid:40)isr(cid:57)(cid:52)(cid:56)io(cid:50) i(cid:50) o(cid:57)r i(cid:50)forma(cid:56)io(cid:50) (cid:56)e(cid:39)(cid:44)(cid:50)o(cid:48)o(cid:43)(cid:61) s(cid:61)s(cid:56)ems (cid:39)o(cid:57)(cid:48)(cid:40) (cid:40)isr(cid:57)(cid:52)(cid:56) o(cid:57)r o(cid:52)era(cid:56)io(cid:50)s(cid:6)
(cid:39)om(cid:52)romise (cid:39)(cid:57)s(cid:56)omer(cid:6) em(cid:52)(cid:48)o(cid:61)ee(cid:6) s(cid:57)(cid:52)(cid:52)(cid:48)ier(cid:6) a(cid:50)(cid:40) o(cid:56)(cid:44)er (cid:40)a(cid:56)a(cid:6) a(cid:50)(cid:40) (cid:39)o(cid:57)(cid:48)(cid:40) (cid:50)e(cid:43)a(cid:56)i(cid:58)e(cid:48)(cid:61) affe(cid:39)(cid:56) o(cid:57)r (cid:38)(cid:57)si(cid:50)ess(cid:8)
(cid:50)e rely on the successful and uninterrupted functioning of our information technology and control systems to securely
manage operations and various business functions(cid:11) and on various technologies to process(cid:11) store(cid:11) and report information about
our business(cid:11) and to interact (cid:76)ith customers(cid:11) suppliers(cid:11) and employees around the (cid:76)orld. In addition(cid:11) our information systems
increasingly rely on cloud solutions (cid:76)hich require different security measures. (cid:47)hese measures cover technical changes to our
net(cid:76)or(cid:64) security(cid:11) organi(cid:79)ation(cid:11) and governance changes as (cid:76)ell as alignment of third(cid:12)party suppliers on mar(cid:64)et standards. As
(cid:76)ith all information technology systems(cid:11) our systems may be susceptible to damage(cid:11) disruption(cid:11) information loss or shutdo(cid:76)n
due to a variety of factors including po(cid:76)er outages(cid:11) failures during the process of upgrading or replacing soft(cid:76)are(cid:11) hard(cid:76)are
failures(cid:11) computer viruses(cid:11) catastrophic events(cid:11) telecommunications failures(cid:11) user errors(cid:11) unauthori(cid:79)ed access(cid:11) and malicious or
accidental destruction(cid:11) or theft of information or functionality.
(cid:17)(cid:61)(cid:38)erse(cid:39)(cid:57)ri(cid:56)(cid:61) Ris(cid:47) (cid:62) T(cid:44)e (cid:40)isr(cid:57)(cid:52)(cid:56)io(cid:50) of o(cid:57)r o(cid:52)era(cid:56)io(cid:50)s or ris(cid:47) of (cid:48)oss of o(cid:57)r se(cid:50)si(cid:56)i(cid:58)e (cid:38)(cid:57)si(cid:50)ess i(cid:50)forma(cid:56)io(cid:50) (cid:39)o(cid:57)(cid:48)(cid:40) (cid:50)e(cid:43)a(cid:56)i(cid:58)e(cid:48)(cid:61)
im(cid:52)a(cid:39)(cid:56) o(cid:57)r fi(cid:50)a(cid:50)(cid:39)ia(cid:48) (cid:39)o(cid:50)(cid:40)i(cid:56)io(cid:50) a(cid:50)(cid:40) res(cid:57)(cid:48)(cid:56)s of o(cid:52)era(cid:56)io(cid:50)s(cid:8)
Increased cyber(cid:12)attac(cid:64)s(cid:11) including computer viruses(cid:11) ransom(cid:76)are(cid:11) unauthori(cid:79)ed access attempts(cid:11) phishing(cid:11) hac(cid:64)ing(cid:11)
and other types of attac(cid:64)s pose a ris(cid:64) to the security and availability of our information technology systems(cid:11) including those
provided by third parties. (cid:50)e have e(cid:77)perienced and e(cid:77)pect to continue to e(cid:77)perience actual and attempted cyber(cid:12)attac(cid:64)s of our
information technology systems and net(cid:76)or(cid:64)s. (cid:34)eopolitical turmoil(cid:11) including as a result of the (cid:45)ussia(cid:12)(cid:48)(cid:64)raine conflict(cid:11)
heightens the ris(cid:64) of cyber(cid:12)attac(cid:64)s. (cid:50)hile (cid:76)e have operational safeguards in place to detect and prevent cyber(cid:12)attac(cid:64)s and to
date have not e(cid:77)perienced any significant impacts(cid:11) our safeguards may not al(cid:76)ays be able to prevent a cyber(cid:12)attac(cid:64) from
impacting our systems (cid:76)hich could have a material impact on our business(cid:11) financial condition(cid:11) results of operations(cid:11) or cash
flo(cid:76)s. In addition(cid:11) our customers and suppliers are susceptible to cyber(cid:12)attac(cid:64)s and disruption to their information technology
systems could result in reduced demand for our products or limit our ability to supply our products.
(cid:50)e have incurred in the past(cid:11) and may incur in the future(cid:11) fines(cid:11) penalties(cid:11) and legal costs relating to environmental
matters(cid:11) and costs relating to the damage of natural resources(cid:11) lost property values(cid:11) and to(cid:77)ic tort claims. (cid:43)rovisions are raised
(cid:50)e also maintain and have access to sensitive(cid:11) confidential or personal data or information that is sub(cid:63)ect to privacy
and security la(cid:76)s(cid:11) regulations(cid:11) and customer controls. (cid:31)espite our efforts to protect such information(cid:11) our facilities and systems
17
18
Amcor Annual Report 2022
Form 10-K
19
and those of our customers and third(cid:12)party service providers may be vulnerable to security breaches(cid:11) cyber(cid:12)attac(cid:64)s(cid:11) misplaced
or lost data(cid:11) and programming and(cid:14)or user errors that could lead to the compromising of sensitive(cid:11) confidential(cid:11) or personal data
or information. Information system damages(cid:11) disruptions(cid:11) shutdo(cid:76)ns(cid:11) or compromises could result in production do(cid:76)ntimes
and operational disruptions(cid:11) transaction errors(cid:11) loss of customers(cid:11) and business opportunities(cid:11) violation of privacy la(cid:76)s and legal
liability(cid:11) regulatory fines(cid:11) penalties or intervention(cid:11) negative publicity resulting in reputational damage(cid:11) reimbursement or
compensatory payments(cid:11) and other costs(cid:11) any of (cid:76)hich could have an adverse effect on our business(cid:11) financial condition(cid:11) results
of operations(cid:11) or cash flo(cid:76)s(cid:11) (cid:76)hich affect may be material and result in a competitive disadvantage. Although (cid:76)e attempt to
mitigate these ris(cid:64)s by employing a number of measures(cid:11) our systems(cid:11) net(cid:76)or(cid:64)s(cid:11) products(cid:11) and services remain potentially
vulnerable to advanced and persistent threats.
Financial Ris(cid:61)s
(cid:23)(cid:50)(cid:40)e(cid:38)(cid:56)e(cid:40)(cid:50)ess a(cid:50)(cid:40) (cid:17)re(cid:40)i(cid:56) Ra(cid:56)i(cid:50)(cid:43) (cid:62) (cid:15) si(cid:43)(cid:50)ifi(cid:39)a(cid:50)(cid:56) i(cid:50)(cid:39)rease i(cid:50) o(cid:57)r i(cid:50)(cid:40)e(cid:38)(cid:56)e(cid:40)(cid:50)ess or a (cid:40)ow(cid:50)(cid:43)ra(cid:40)e i(cid:50) o(cid:57)r (cid:39)re(cid:40)i(cid:56) ra(cid:56)i(cid:50)(cid:43) (cid:39)o(cid:57)(cid:48)(cid:40)
re(cid:40)(cid:57)(cid:39)e o(cid:57)r o(cid:52)era(cid:56)i(cid:50)(cid:43) f(cid:48)exi(cid:38)i(cid:48)i(cid:56)(cid:61) a(cid:50)(cid:40) i(cid:50)(cid:39)rease o(cid:57)r (cid:38)orrowi(cid:50)(cid:43) (cid:39)os(cid:56)s a(cid:50)(cid:40) (cid:50)e(cid:43)a(cid:56)i(cid:58)e(cid:48)(cid:61) affe(cid:39)(cid:56) o(cid:57)r fi(cid:50)a(cid:50)(cid:39)ia(cid:48) (cid:39)o(cid:50)(cid:40)i(cid:56)io(cid:50) a(cid:50)(cid:40) res(cid:57)(cid:48)(cid:56)s of
o(cid:52)era(cid:56)io(cid:50)s(cid:8)
At (cid:37)une 30(cid:11) 2022(cid:11) (cid:76)e had $6.5 billion of debt outstanding and a $1.4 billion undra(cid:76)n revolving credit facility and (cid:76)e
are not restricted in incurring(cid:11) and may incur(cid:11) additional indebtedness in the future. Our ability to pay interest and repay the
principal of our indebtedness is dependent on our ability to generate sufficient cash flo(cid:76)s (cid:76)hich is dependent(cid:11) in part(cid:11) on
prevailing economic and competitive conditions and certain legislative(cid:11) regulatory(cid:11) and other factors beyond our control. If (cid:76)e
are unable to maintain sufficient cash flo(cid:76)s from operations to meet our debt commitments(cid:11) our financial condition and results
of operations are li(cid:64)ely to be materially adversely impacted.
(cid:50)e use cash provided by operations(cid:11) commercial paper issuances(cid:11) ban(cid:64) term loans(cid:11) committed revolving credit
facilities(cid:11) debt issuances(cid:11) and equity issuances to meet our funding needs. Credit rating agencies rate our debt securities on
many factors(cid:11) including our financial results(cid:11) their vie(cid:76) of the general outloo(cid:64) for our industry(cid:11) and their vie(cid:76) of the general
outloo(cid:64) for the global economy. Any significant additional indebtedness (cid:76)ould li(cid:64)ely negatively affect the credit ratings of our
debt. Actions ta(cid:64)en by the rating agencies include maintaining(cid:11) upgrading or do(cid:76)ngrading the current rating or placing us on a
(cid:76)atch list for a possible future do(cid:76)ngrade. If rating agencies do(cid:76)ngrade our credit rating(cid:11) place us on a (cid:76)atch list(cid:11) or if there
are adverse mar(cid:64)et conditions(cid:11) including disruptions in the commercial paper mar(cid:64)et(cid:11) the impacts could include reduced access
to the commercial paper(cid:11) credit and capital mar(cid:64)ets(cid:11) an increase in the cost of our borro(cid:76)ings or the fees associated (cid:76)ith our
ban(cid:64) credit facility(cid:11) or an increase in the credit spread incurred (cid:76)hen issuing debt in the capital mar(cid:64)ets. (cid:45)efer to "Item 7 (cid:12)
(cid:40)anagement(cid:89)s (cid:31)iscussion and Analysis of Financial Condition and (cid:45)esults of Operations(cid:11)" "Liquidity and Capital (cid:45)esources(cid:11)"
of this Annual (cid:45)eport on Form 10(cid:12)(cid:38) for more information on our credit rating profile.
In addition(cid:11) a significant number of our operating subsidiaries are not guarantors of our indebtedness. In the event that
any non(cid:12)guarantor subsidiary becomes insolvent(cid:11) liquidates(cid:11) reorgani(cid:79)es(cid:11) dissolves(cid:11) or other(cid:76)ise (cid:76)inds up(cid:11) the assets of such
subsidiary (cid:76)ill be used to satisfy the claims of its creditors. (cid:47)he non(cid:12)guarantor subsidiaries have no direct obligations in respect
of our indebtedness and therefore(cid:11) a direct claim against any non(cid:12)guarantor subsidiary and any claims to enforce payment on
our indebtedness (cid:76)ill be structurally subordinated to all of the claims of the creditors of our non(cid:12)guarantor subsidiaries.
(cid:19)x(cid:39)(cid:44)a(cid:50)(cid:43)e Ra(cid:56)es (cid:62) (cid:36)e are ex(cid:52)ose(cid:40) (cid:56)o forei(cid:43)(cid:50) ex(cid:39)(cid:44)a(cid:50)(cid:43)e ra(cid:56)e ris(cid:47)(cid:8)
(cid:50)e are sub(cid:63)ect to foreign e(cid:77)change rate ris(cid:64)(cid:11) both transactional and translational(cid:11) (cid:76)hich may negatively affect our
financial performance. (cid:47)ransactional foreign e(cid:77)change e(cid:77)posures result from e(cid:77)change rate fluctuations(cid:11) including in respect of
the (cid:48).S. dollar(cid:11) the Euro(cid:11) the (cid:45)ussian ruble and other currencies(cid:11) including in Latin America(cid:11) in (cid:76)hich our costs are
denominated(cid:11) (cid:76)hich may affect our business input costs and proceeds from product sales. (cid:47)ranslational foreign e(cid:77)change
e(cid:77)posures result from e(cid:77)change rate fluctuations in the conversion of entity functional currencies to (cid:48).S. dollars(cid:11) our reporting
currency(cid:11) and may affect the reported value of our assets and liabilities and our income and e(cid:77)penses. In particular(cid:11) our
translational e(cid:77)posure may be impacted by movements in the e(cid:77)change rate bet(cid:76)een the Euro(cid:11) the (cid:48)nited (cid:38)ingdom (cid:43)ound
Sterling(cid:11) the Australian (cid:31)ollar(cid:11) the Chinese (cid:52)uan(cid:11) and the Bra(cid:79)ilian (cid:45)eal against the (cid:48).S. dollar.
E(cid:77)change rates bet(cid:76)een transactional currencies may change rapidly due to a variety of factors. In addition(cid:11) (cid:76)e have
recogni(cid:79)ed foreign e(cid:77)change losses related to the currency devaluation in Argentina and its designation as a highly inflationary
economy under (cid:48).S. (cid:34)AA(cid:43). See (cid:41)ote 2(cid:11) "Significant Accounting (cid:43)olicies(cid:11)" of the notes to consolidated financial statements for
further information regarding highly inflationary accounting.
(cid:47)o the e(cid:77)tent currency devaluation occurs across our business(cid:11) (cid:76)e are li(cid:64)ely to e(cid:77)perience a lag in the timing to pass
through (cid:48).S. dollar(cid:12)denominated input costs across our business(cid:11) (cid:76)hich (cid:76)ould adversely impact our margins and profitability.
As such(cid:11) (cid:76)e may be e(cid:77)posed to future e(cid:77)change rate fluctuations(cid:11) and such fluctuations could have an adverse effect on our
reported cash flo(cid:76)(cid:11) financial condition(cid:11) and results of operations(cid:11) the effect of (cid:76)hich may be material. Our Board of (cid:31)irectors
has approved a hedging policy to limit and manage the ris(cid:64) of such foreign e(cid:77)change fluctuations(cid:11) ho(cid:76)ever(cid:11) if our hedges are
not effective in mitigating our foreign currency ris(cid:64)s(cid:11) if (cid:76)e are under(cid:12)hedged(cid:11) or if a hedge provider defaults on their
obligations under hedging arrangements(cid:11) it could have an adverse impact on our results of operations.
(cid:23)(cid:50)(cid:56)eres(cid:56) Ra(cid:56)es (cid:62) Risi(cid:50)(cid:43) i(cid:50)(cid:56)eres(cid:56) ra(cid:56)es i(cid:50)(cid:39)rease o(cid:57)r (cid:38)orrowi(cid:50)(cid:43) (cid:39)os(cid:56)s o(cid:50) o(cid:57)r (cid:58)aria(cid:38)(cid:48)e ra(cid:56)e i(cid:50)(cid:40)e(cid:38)(cid:56)e(cid:40)(cid:50)ess a(cid:50)(cid:40) (cid:39)o(cid:57)(cid:48)(cid:40) (cid:44)a(cid:58)e o(cid:56)(cid:44)er
(cid:50)e(cid:43)a(cid:56)i(cid:58)e im(cid:52)a(cid:39)(cid:56)s(cid:8)
As of (cid:37)une 30(cid:11) 2022(cid:11) appro(cid:77)imately fifty percent of our indebtedness (cid:76)as sub(cid:63)ect to variable interest rates. (cid:50)hen
interest rates increase(cid:11) our debt service obligations increase on our variable rate indebtedness even though the amount borro(cid:76)ed
remains the same. Increases in short(cid:12)term interest rates (cid:76)ill directly impact the amount of interest (cid:76)e pay. (cid:50)e manage e(cid:77)posure
to interest rates by maintaining a mi(cid:77)ture of fi(cid:77)ed(cid:12)rate and variable(cid:12)rate debt(cid:11) monitoring global interest rates(cid:11) and(cid:11) (cid:76)here
appropriate(cid:11) entering into various derivative instruments. (cid:35)o(cid:76)ever(cid:11) if our derivative instruments are not effective in mitigating
our interest rate ris(cid:64)(cid:11) if (cid:76)e are under(cid:12)hedged(cid:11) or if a hedge provider defaults on their obligations under hedging arrangements(cid:11) it
could have an adverse impact on our results of operations.
In addition(cid:11) rising interest rates could reduce the attractiveness of cash management programs (cid:76)e use(cid:11) such as
customer and supply chain finance programs(cid:11) (cid:76)hich could negatively impact our cash and (cid:76)or(cid:64)ing capital and increase our
borro(cid:76)ings. (cid:45)efer to (cid:41)ote 14(cid:11) "(cid:31)ebt(cid:11)" of the notes to consolidated financial statements for information about our variable rate
borro(cid:76)ings. Also refer to "Item 7A (cid:12) (cid:44)uantitative and (cid:44)ualitative (cid:31)isclosures about (cid:40)ar(cid:64)et (cid:45)is(cid:64)(cid:11)" including interest rate ris(cid:64)(cid:11)
in this Annual (cid:45)eport on Form 10(cid:12)(cid:38).
(cid:21)oo(cid:40)wi(cid:48)(cid:48) a(cid:50)(cid:40) (cid:29)(cid:56)(cid:44)er (cid:23)(cid:50)(cid:56)a(cid:50)(cid:43)i(cid:38)(cid:48)e (cid:15)sse(cid:56)s (cid:62) (cid:15) si(cid:43)(cid:50)ifi(cid:39)a(cid:50)(cid:56) wri(cid:56)e(cid:7)(cid:40)ow(cid:50) of (cid:43)oo(cid:40)wi(cid:48)(cid:48) a(cid:50)(cid:40)(cid:9)or o(cid:56)(cid:44)er i(cid:50)(cid:56)a(cid:50)(cid:43)i(cid:38)(cid:48)e asse(cid:56)s wo(cid:57)(cid:48)(cid:40) (cid:44)a(cid:58)e a
ma(cid:56)eria(cid:48) a(cid:40)(cid:58)erse effe(cid:39)(cid:56) o(cid:50) o(cid:57)r re(cid:52)or(cid:56)e(cid:40) res(cid:57)(cid:48)(cid:56)s of o(cid:52)era(cid:56)io(cid:50)s a(cid:50)(cid:40) fi(cid:50)a(cid:50)(cid:39)ia(cid:48) (cid:52)osi(cid:56)io(cid:50)(cid:8)
As of (cid:37)une 30(cid:11) 2022(cid:11) (cid:76)e had $6.(cid:24) billion of good(cid:76)ill and other intangible assets. (cid:50)e revie(cid:76) our good(cid:76)ill balance for
impairment at least once a year and (cid:76)henever events or a change in circumstances indicate that an impairment may have
occurred using the business valuation methods allo(cid:76)ed in accordance (cid:76)ith current accounting standards. Future changes in the
cost of capital(cid:11) e(cid:77)pected cash flo(cid:76)s(cid:11) or other factors may cause our good(cid:76)ill and(cid:14)or other intangible assets to be impaired(cid:11)
resulting in a non(cid:12)cash charge against results of operations to (cid:76)rite do(cid:76)n these assets for the amount of the impairment. In
addition(cid:11) if (cid:76)e ma(cid:64)e changes in our business strategy or if e(cid:77)ternal conditions(cid:11) such as the (cid:45)ussia(cid:12)(cid:48)(cid:64)raine conflict(cid:11) adversely
affect our business operations(cid:11) (cid:76)e may be required to record an impairment charge for good(cid:76)ill or intangibles(cid:11) (cid:76)hich (cid:76)ould
lead to decreased assets and reduced net operating results. If a significant (cid:76)rite do(cid:76)n is required(cid:11) the charge (cid:76)ould have a
material adverse effect on our reported results of operations and net (cid:76)orth. (cid:50)e have identified the valuation of intangible assets
and good(cid:76)ill as a critical accounting estimate. See "Item 7. (cid:12) (cid:40)anagement(cid:89)s (cid:31)iscussion and Analysis of Financial Condition
and (cid:45)esults of Operations(cid:11)" "Critical Accounting Estimates and (cid:37)udgments(cid:11)" of this Annual (cid:45)eport on Form 10(cid:12)(cid:38).
(cid:23)(cid:50)(cid:56)er(cid:50)a(cid:48) (cid:17)o(cid:50)(cid:56)ro(cid:48)s (cid:62) (cid:23)f we fai(cid:48) (cid:56)o mai(cid:50)(cid:56)ai(cid:50) a(cid:50) effe(cid:39)(cid:56)i(cid:58)e s(cid:61)s(cid:56)em of i(cid:50)(cid:56)er(cid:50)a(cid:48) (cid:39)o(cid:50)(cid:56)ro(cid:48) o(cid:58)er fi(cid:50)a(cid:50)(cid:39)ia(cid:48) re(cid:52)or(cid:56)i(cid:50)(cid:43) we ma(cid:61) (cid:50)o(cid:56) (cid:38)e
a(cid:38)(cid:48)e (cid:56)o a(cid:39)(cid:39)(cid:57)ra(cid:56)e(cid:48)(cid:61) re(cid:52)or(cid:56) o(cid:57)r fi(cid:50)a(cid:50)(cid:39)ia(cid:48) res(cid:57)(cid:48)(cid:56)s w(cid:44)i(cid:39)(cid:44) ma(cid:61) a(cid:40)(cid:58)erse(cid:48)(cid:61) affe(cid:39)(cid:56) i(cid:50)(cid:58)es(cid:56)or (cid:39)o(cid:50)fi(cid:40)e(cid:50)(cid:39)e a(cid:50)(cid:40) a(cid:40)(cid:58)erse(cid:48)(cid:61) im(cid:52)a(cid:39)(cid:56) o(cid:57)r s(cid:56)o(cid:39)(cid:47)
(cid:52)ri(cid:39)e(cid:8)
respectively.
(cid:50)e have been sub(cid:63)ect to the requirements of Section 404 of the Sarbanes(cid:12)O(cid:77)ley Act ("SO(cid:51)") since fiscal year 2020.
(cid:50)hile our internal controls over financial reporting currently meet the standards set forth in SO(cid:51)(cid:11) our internal control over
financial reporting may not prevent or detect misstatements as any controls or procedures(cid:11) no matter ho(cid:76) (cid:76)ell designed and
operated(cid:11) can provide only reasonable assurance from misstatement. (cid:50)e identified t(cid:76)o material (cid:76)ea(cid:64)nesses in our internal
control over financial reporting in connection (cid:76)ith our listing on the (cid:41)(cid:52)SE in 201(cid:24) related to (cid:48).S. (cid:34)AA(cid:43) e(cid:77)pertise and
segregation of duties (cid:76)ithin (cid:64)ey information technology systems (cid:76)hich (cid:76)ere remediated in fiscal years 2020 and 2021(cid:11)
(cid:47)here can be no assurance that (cid:76)e (cid:76)ill not identify ne(cid:76) material (cid:76)ea(cid:64)nesses in the future. Any ne(cid:76)ly identified
material (cid:76)ea(cid:64)nesses could limit our ability to prevent or detect a misstatement of our financial results(cid:11) lead to a loss of investor
confidence(cid:11) and have a negative impact on the trading price of our common stoc(cid:64).
(cid:23)(cid:50)s(cid:57)ra(cid:50)(cid:39)e (cid:62) (cid:29)(cid:57)r i(cid:50)s(cid:57)ra(cid:50)(cid:39)e (cid:52)o(cid:48)i(cid:39)ies(cid:6) i(cid:50)(cid:39)(cid:48)(cid:57)(cid:40)i(cid:50)(cid:43) o(cid:57)r (cid:57)se of a (cid:39)a(cid:52)(cid:56)i(cid:58)e i(cid:50)s(cid:57)ra(cid:50)(cid:39)e (cid:39)om(cid:52)a(cid:50)(cid:61)(cid:6) ma(cid:61) (cid:50)o(cid:56) (cid:52)ro(cid:58)i(cid:40)e a(cid:40)e(cid:53)(cid:57)a(cid:56)e
(cid:52)ro(cid:56)e(cid:39)(cid:56)io(cid:50) a(cid:43)ai(cid:50)s(cid:56) a(cid:48)(cid:48) of (cid:56)(cid:44)e ris(cid:47)s we fa(cid:39)e(cid:8)
(cid:50)e see(cid:64) protection from a number of our (cid:64)ey operational ris(cid:64) e(cid:77)posures through the purchase of insurance. A
significant portion of our insurance is placed in the insurance mar(cid:64)et (cid:76)ith third(cid:12)party re(cid:12)insurers. Our policies (cid:76)ith such third(cid:12)
party re(cid:12)insurers cover a variety of ris(cid:64) e(cid:77)posures(cid:11) including property damage. Although (cid:76)e believe the coverage provided by
such policies is consistent (cid:76)ith industry practice(cid:11) they may not adequately cover certain ris(cid:64)s and there is no guarantee that any
1(cid:24)
Amcor Annual Report 2022
20
19
Form 10-K
20
and those of our customers and third(cid:12)party service providers may be vulnerable to security breaches(cid:11) cyber(cid:12)attac(cid:64)s(cid:11) misplaced
or lost data(cid:11) and programming and(cid:14)or user errors that could lead to the compromising of sensitive(cid:11) confidential(cid:11) or personal data
or information. Information system damages(cid:11) disruptions(cid:11) shutdo(cid:76)ns(cid:11) or compromises could result in production do(cid:76)ntimes
and operational disruptions(cid:11) transaction errors(cid:11) loss of customers(cid:11) and business opportunities(cid:11) violation of privacy la(cid:76)s and legal
liability(cid:11) regulatory fines(cid:11) penalties or intervention(cid:11) negative publicity resulting in reputational damage(cid:11) reimbursement or
compensatory payments(cid:11) and other costs(cid:11) any of (cid:76)hich could have an adverse effect on our business(cid:11) financial condition(cid:11) results
of operations(cid:11) or cash flo(cid:76)s(cid:11) (cid:76)hich affect may be material and result in a competitive disadvantage. Although (cid:76)e attempt to
mitigate these ris(cid:64)s by employing a number of measures(cid:11) our systems(cid:11) net(cid:76)or(cid:64)s(cid:11) products(cid:11) and services remain potentially
vulnerable to advanced and persistent threats.
Financial Ris(cid:61)s
o(cid:52)era(cid:56)io(cid:50)s(cid:8)
(cid:23)(cid:50)(cid:40)e(cid:38)(cid:56)e(cid:40)(cid:50)ess a(cid:50)(cid:40) (cid:17)re(cid:40)i(cid:56) Ra(cid:56)i(cid:50)(cid:43) (cid:62) (cid:15) si(cid:43)(cid:50)ifi(cid:39)a(cid:50)(cid:56) i(cid:50)(cid:39)rease i(cid:50) o(cid:57)r i(cid:50)(cid:40)e(cid:38)(cid:56)e(cid:40)(cid:50)ess or a (cid:40)ow(cid:50)(cid:43)ra(cid:40)e i(cid:50) o(cid:57)r (cid:39)re(cid:40)i(cid:56) ra(cid:56)i(cid:50)(cid:43) (cid:39)o(cid:57)(cid:48)(cid:40)
re(cid:40)(cid:57)(cid:39)e o(cid:57)r o(cid:52)era(cid:56)i(cid:50)(cid:43) f(cid:48)exi(cid:38)i(cid:48)i(cid:56)(cid:61) a(cid:50)(cid:40) i(cid:50)(cid:39)rease o(cid:57)r (cid:38)orrowi(cid:50)(cid:43) (cid:39)os(cid:56)s a(cid:50)(cid:40) (cid:50)e(cid:43)a(cid:56)i(cid:58)e(cid:48)(cid:61) affe(cid:39)(cid:56) o(cid:57)r fi(cid:50)a(cid:50)(cid:39)ia(cid:48) (cid:39)o(cid:50)(cid:40)i(cid:56)io(cid:50) a(cid:50)(cid:40) res(cid:57)(cid:48)(cid:56)s of
At (cid:37)une 30(cid:11) 2022(cid:11) (cid:76)e had $6.5 billion of debt outstanding and a $1.4 billion undra(cid:76)n revolving credit facility and (cid:76)e
are not restricted in incurring(cid:11) and may incur(cid:11) additional indebtedness in the future. Our ability to pay interest and repay the
principal of our indebtedness is dependent on our ability to generate sufficient cash flo(cid:76)s (cid:76)hich is dependent(cid:11) in part(cid:11) on
prevailing economic and competitive conditions and certain legislative(cid:11) regulatory(cid:11) and other factors beyond our control. If (cid:76)e
are unable to maintain sufficient cash flo(cid:76)s from operations to meet our debt commitments(cid:11) our financial condition and results
of operations are li(cid:64)ely to be materially adversely impacted.
(cid:50)e use cash provided by operations(cid:11) commercial paper issuances(cid:11) ban(cid:64) term loans(cid:11) committed revolving credit
facilities(cid:11) debt issuances(cid:11) and equity issuances to meet our funding needs. Credit rating agencies rate our debt securities on
many factors(cid:11) including our financial results(cid:11) their vie(cid:76) of the general outloo(cid:64) for our industry(cid:11) and their vie(cid:76) of the general
outloo(cid:64) for the global economy. Any significant additional indebtedness (cid:76)ould li(cid:64)ely negatively affect the credit ratings of our
debt. Actions ta(cid:64)en by the rating agencies include maintaining(cid:11) upgrading or do(cid:76)ngrading the current rating or placing us on a
(cid:76)atch list for a possible future do(cid:76)ngrade. If rating agencies do(cid:76)ngrade our credit rating(cid:11) place us on a (cid:76)atch list(cid:11) or if there
are adverse mar(cid:64)et conditions(cid:11) including disruptions in the commercial paper mar(cid:64)et(cid:11) the impacts could include reduced access
to the commercial paper(cid:11) credit and capital mar(cid:64)ets(cid:11) an increase in the cost of our borro(cid:76)ings or the fees associated (cid:76)ith our
ban(cid:64) credit facility(cid:11) or an increase in the credit spread incurred (cid:76)hen issuing debt in the capital mar(cid:64)ets. (cid:45)efer to "Item 7 (cid:12)
(cid:40)anagement(cid:89)s (cid:31)iscussion and Analysis of Financial Condition and (cid:45)esults of Operations(cid:11)" "Liquidity and Capital (cid:45)esources(cid:11)"
of this Annual (cid:45)eport on Form 10(cid:12)(cid:38) for more information on our credit rating profile.
In addition(cid:11) a significant number of our operating subsidiaries are not guarantors of our indebtedness. In the event that
any non(cid:12)guarantor subsidiary becomes insolvent(cid:11) liquidates(cid:11) reorgani(cid:79)es(cid:11) dissolves(cid:11) or other(cid:76)ise (cid:76)inds up(cid:11) the assets of such
subsidiary (cid:76)ill be used to satisfy the claims of its creditors. (cid:47)he non(cid:12)guarantor subsidiaries have no direct obligations in respect
of our indebtedness and therefore(cid:11) a direct claim against any non(cid:12)guarantor subsidiary and any claims to enforce payment on
our indebtedness (cid:76)ill be structurally subordinated to all of the claims of the creditors of our non(cid:12)guarantor subsidiaries.
(cid:19)x(cid:39)(cid:44)a(cid:50)(cid:43)e Ra(cid:56)es (cid:62) (cid:36)e are ex(cid:52)ose(cid:40) (cid:56)o forei(cid:43)(cid:50) ex(cid:39)(cid:44)a(cid:50)(cid:43)e ra(cid:56)e ris(cid:47)(cid:8)
(cid:50)e are sub(cid:63)ect to foreign e(cid:77)change rate ris(cid:64)(cid:11) both transactional and translational(cid:11) (cid:76)hich may negatively affect our
financial performance. (cid:47)ransactional foreign e(cid:77)change e(cid:77)posures result from e(cid:77)change rate fluctuations(cid:11) including in respect of
the (cid:48).S. dollar(cid:11) the Euro(cid:11) the (cid:45)ussian ruble and other currencies(cid:11) including in Latin America(cid:11) in (cid:76)hich our costs are
denominated(cid:11) (cid:76)hich may affect our business input costs and proceeds from product sales. (cid:47)ranslational foreign e(cid:77)change
e(cid:77)posures result from e(cid:77)change rate fluctuations in the conversion of entity functional currencies to (cid:48).S. dollars(cid:11) our reporting
currency(cid:11) and may affect the reported value of our assets and liabilities and our income and e(cid:77)penses. In particular(cid:11) our
translational e(cid:77)posure may be impacted by movements in the e(cid:77)change rate bet(cid:76)een the Euro(cid:11) the (cid:48)nited (cid:38)ingdom (cid:43)ound
Sterling(cid:11) the Australian (cid:31)ollar(cid:11) the Chinese (cid:52)uan(cid:11) and the Bra(cid:79)ilian (cid:45)eal against the (cid:48).S. dollar.
E(cid:77)change rates bet(cid:76)een transactional currencies may change rapidly due to a variety of factors. In addition(cid:11) (cid:76)e have
recogni(cid:79)ed foreign e(cid:77)change losses related to the currency devaluation in Argentina and its designation as a highly inflationary
economy under (cid:48).S. (cid:34)AA(cid:43). See (cid:41)ote 2(cid:11) "Significant Accounting (cid:43)olicies(cid:11)" of the notes to consolidated financial statements for
further information regarding highly inflationary accounting.
(cid:47)o the e(cid:77)tent currency devaluation occurs across our business(cid:11) (cid:76)e are li(cid:64)ely to e(cid:77)perience a lag in the timing to pass
through (cid:48).S. dollar(cid:12)denominated input costs across our business(cid:11) (cid:76)hich (cid:76)ould adversely impact our margins and profitability.
As such(cid:11) (cid:76)e may be e(cid:77)posed to future e(cid:77)change rate fluctuations(cid:11) and such fluctuations could have an adverse effect on our
reported cash flo(cid:76)(cid:11) financial condition(cid:11) and results of operations(cid:11) the effect of (cid:76)hich may be material. Our Board of (cid:31)irectors
has approved a hedging policy to limit and manage the ris(cid:64) of such foreign e(cid:77)change fluctuations(cid:11) ho(cid:76)ever(cid:11) if our hedges are
not effective in mitigating our foreign currency ris(cid:64)s(cid:11) if (cid:76)e are under(cid:12)hedged(cid:11) or if a hedge provider defaults on their
obligations under hedging arrangements(cid:11) it could have an adverse impact on our results of operations.
(cid:23)(cid:50)(cid:56)eres(cid:56) Ra(cid:56)es (cid:62) Risi(cid:50)(cid:43) i(cid:50)(cid:56)eres(cid:56) ra(cid:56)es i(cid:50)(cid:39)rease o(cid:57)r (cid:38)orrowi(cid:50)(cid:43) (cid:39)os(cid:56)s o(cid:50) o(cid:57)r (cid:58)aria(cid:38)(cid:48)e ra(cid:56)e i(cid:50)(cid:40)e(cid:38)(cid:56)e(cid:40)(cid:50)ess a(cid:50)(cid:40) (cid:39)o(cid:57)(cid:48)(cid:40) (cid:44)a(cid:58)e o(cid:56)(cid:44)er
(cid:50)e(cid:43)a(cid:56)i(cid:58)e im(cid:52)a(cid:39)(cid:56)s(cid:8)
As of (cid:37)une 30(cid:11) 2022(cid:11) appro(cid:77)imately fifty percent of our indebtedness (cid:76)as sub(cid:63)ect to variable interest rates. (cid:50)hen
interest rates increase(cid:11) our debt service obligations increase on our variable rate indebtedness even though the amount borro(cid:76)ed
remains the same. Increases in short(cid:12)term interest rates (cid:76)ill directly impact the amount of interest (cid:76)e pay. (cid:50)e manage e(cid:77)posure
to interest rates by maintaining a mi(cid:77)ture of fi(cid:77)ed(cid:12)rate and variable(cid:12)rate debt(cid:11) monitoring global interest rates(cid:11) and(cid:11) (cid:76)here
appropriate(cid:11) entering into various derivative instruments. (cid:35)o(cid:76)ever(cid:11) if our derivative instruments are not effective in mitigating
our interest rate ris(cid:64)(cid:11) if (cid:76)e are under(cid:12)hedged(cid:11) or if a hedge provider defaults on their obligations under hedging arrangements(cid:11) it
could have an adverse impact on our results of operations.
In addition(cid:11) rising interest rates could reduce the attractiveness of cash management programs (cid:76)e use(cid:11) such as
customer and supply chain finance programs(cid:11) (cid:76)hich could negatively impact our cash and (cid:76)or(cid:64)ing capital and increase our
borro(cid:76)ings. (cid:45)efer to (cid:41)ote 14(cid:11) "(cid:31)ebt(cid:11)" of the notes to consolidated financial statements for information about our variable rate
borro(cid:76)ings. Also refer to "Item 7A (cid:12) (cid:44)uantitative and (cid:44)ualitative (cid:31)isclosures about (cid:40)ar(cid:64)et (cid:45)is(cid:64)(cid:11)" including interest rate ris(cid:64)(cid:11)
in this Annual (cid:45)eport on Form 10(cid:12)(cid:38).
(cid:21)oo(cid:40)wi(cid:48)(cid:48) a(cid:50)(cid:40) (cid:29)(cid:56)(cid:44)er (cid:23)(cid:50)(cid:56)a(cid:50)(cid:43)i(cid:38)(cid:48)e (cid:15)sse(cid:56)s (cid:62) (cid:15) si(cid:43)(cid:50)ifi(cid:39)a(cid:50)(cid:56) wri(cid:56)e(cid:7)(cid:40)ow(cid:50) of (cid:43)oo(cid:40)wi(cid:48)(cid:48) a(cid:50)(cid:40)(cid:9)or o(cid:56)(cid:44)er i(cid:50)(cid:56)a(cid:50)(cid:43)i(cid:38)(cid:48)e asse(cid:56)s wo(cid:57)(cid:48)(cid:40) (cid:44)a(cid:58)e a
ma(cid:56)eria(cid:48) a(cid:40)(cid:58)erse effe(cid:39)(cid:56) o(cid:50) o(cid:57)r re(cid:52)or(cid:56)e(cid:40) res(cid:57)(cid:48)(cid:56)s of o(cid:52)era(cid:56)io(cid:50)s a(cid:50)(cid:40) fi(cid:50)a(cid:50)(cid:39)ia(cid:48) (cid:52)osi(cid:56)io(cid:50)(cid:8)
As of (cid:37)une 30(cid:11) 2022(cid:11) (cid:76)e had $6.(cid:24) billion of good(cid:76)ill and other intangible assets. (cid:50)e revie(cid:76) our good(cid:76)ill balance for
impairment at least once a year and (cid:76)henever events or a change in circumstances indicate that an impairment may have
occurred using the business valuation methods allo(cid:76)ed in accordance (cid:76)ith current accounting standards. Future changes in the
cost of capital(cid:11) e(cid:77)pected cash flo(cid:76)s(cid:11) or other factors may cause our good(cid:76)ill and(cid:14)or other intangible assets to be impaired(cid:11)
resulting in a non(cid:12)cash charge against results of operations to (cid:76)rite do(cid:76)n these assets for the amount of the impairment. In
addition(cid:11) if (cid:76)e ma(cid:64)e changes in our business strategy or if e(cid:77)ternal conditions(cid:11) such as the (cid:45)ussia(cid:12)(cid:48)(cid:64)raine conflict(cid:11) adversely
affect our business operations(cid:11) (cid:76)e may be required to record an impairment charge for good(cid:76)ill or intangibles(cid:11) (cid:76)hich (cid:76)ould
lead to decreased assets and reduced net operating results. If a significant (cid:76)rite do(cid:76)n is required(cid:11) the charge (cid:76)ould have a
material adverse effect on our reported results of operations and net (cid:76)orth. (cid:50)e have identified the valuation of intangible assets
and good(cid:76)ill as a critical accounting estimate. See "Item 7. (cid:12) (cid:40)anagement(cid:89)s (cid:31)iscussion and Analysis of Financial Condition
and (cid:45)esults of Operations(cid:11)" "Critical Accounting Estimates and (cid:37)udgments(cid:11)" of this Annual (cid:45)eport on Form 10(cid:12)(cid:38).
(cid:23)(cid:50)(cid:56)er(cid:50)a(cid:48) (cid:17)o(cid:50)(cid:56)ro(cid:48)s (cid:62) (cid:23)f we fai(cid:48) (cid:56)o mai(cid:50)(cid:56)ai(cid:50) a(cid:50) effe(cid:39)(cid:56)i(cid:58)e s(cid:61)s(cid:56)em of i(cid:50)(cid:56)er(cid:50)a(cid:48) (cid:39)o(cid:50)(cid:56)ro(cid:48) o(cid:58)er fi(cid:50)a(cid:50)(cid:39)ia(cid:48) re(cid:52)or(cid:56)i(cid:50)(cid:43) we ma(cid:61) (cid:50)o(cid:56) (cid:38)e
a(cid:38)(cid:48)e (cid:56)o a(cid:39)(cid:39)(cid:57)ra(cid:56)e(cid:48)(cid:61) re(cid:52)or(cid:56) o(cid:57)r fi(cid:50)a(cid:50)(cid:39)ia(cid:48) res(cid:57)(cid:48)(cid:56)s w(cid:44)i(cid:39)(cid:44) ma(cid:61) a(cid:40)(cid:58)erse(cid:48)(cid:61) affe(cid:39)(cid:56) i(cid:50)(cid:58)es(cid:56)or (cid:39)o(cid:50)fi(cid:40)e(cid:50)(cid:39)e a(cid:50)(cid:40) a(cid:40)(cid:58)erse(cid:48)(cid:61) im(cid:52)a(cid:39)(cid:56) o(cid:57)r s(cid:56)o(cid:39)(cid:47)
(cid:52)ri(cid:39)e(cid:8)
(cid:50)e have been sub(cid:63)ect to the requirements of Section 404 of the Sarbanes(cid:12)O(cid:77)ley Act ("SO(cid:51)") since fiscal year 2020.
(cid:50)hile our internal controls over financial reporting currently meet the standards set forth in SO(cid:51)(cid:11) our internal control over
financial reporting may not prevent or detect misstatements as any controls or procedures(cid:11) no matter ho(cid:76) (cid:76)ell designed and
operated(cid:11) can provide only reasonable assurance from misstatement. (cid:50)e identified t(cid:76)o material (cid:76)ea(cid:64)nesses in our internal
control over financial reporting in connection (cid:76)ith our listing on the (cid:41)(cid:52)SE in 201(cid:24) related to (cid:48).S. (cid:34)AA(cid:43) e(cid:77)pertise and
segregation of duties (cid:76)ithin (cid:64)ey information technology systems (cid:76)hich (cid:76)ere remediated in fiscal years 2020 and 2021(cid:11)
respectively.
(cid:47)here can be no assurance that (cid:76)e (cid:76)ill not identify ne(cid:76) material (cid:76)ea(cid:64)nesses in the future. Any ne(cid:76)ly identified
material (cid:76)ea(cid:64)nesses could limit our ability to prevent or detect a misstatement of our financial results(cid:11) lead to a loss of investor
confidence(cid:11) and have a negative impact on the trading price of our common stoc(cid:64).
(cid:23)(cid:50)s(cid:57)ra(cid:50)(cid:39)e (cid:62) (cid:29)(cid:57)r i(cid:50)s(cid:57)ra(cid:50)(cid:39)e (cid:52)o(cid:48)i(cid:39)ies(cid:6) i(cid:50)(cid:39)(cid:48)(cid:57)(cid:40)i(cid:50)(cid:43) o(cid:57)r (cid:57)se of a (cid:39)a(cid:52)(cid:56)i(cid:58)e i(cid:50)s(cid:57)ra(cid:50)(cid:39)e (cid:39)om(cid:52)a(cid:50)(cid:61)(cid:6) ma(cid:61) (cid:50)o(cid:56) (cid:52)ro(cid:58)i(cid:40)e a(cid:40)e(cid:53)(cid:57)a(cid:56)e
(cid:52)ro(cid:56)e(cid:39)(cid:56)io(cid:50) a(cid:43)ai(cid:50)s(cid:56) a(cid:48)(cid:48) of (cid:56)(cid:44)e ris(cid:47)s we fa(cid:39)e(cid:8)
(cid:50)e see(cid:64) protection from a number of our (cid:64)ey operational ris(cid:64) e(cid:77)posures through the purchase of insurance. A
significant portion of our insurance is placed in the insurance mar(cid:64)et (cid:76)ith third(cid:12)party re(cid:12)insurers. Our policies (cid:76)ith such third(cid:12)
party re(cid:12)insurers cover a variety of ris(cid:64) e(cid:77)posures(cid:11) including property damage. Although (cid:76)e believe the coverage provided by
such policies is consistent (cid:76)ith industry practice(cid:11) they may not adequately cover certain ris(cid:64)s and there is no guarantee that any
1(cid:24)
20
Amcor Annual Report 2022
Form 10-K
2(cid:20)
claims made under such policies (cid:76)ill ultimately be paid or that (cid:76)e (cid:76)ill be able to maintain such insurance at acceptable
premium cost levels in the future.
Additionally(cid:11) (cid:76)e retain a portion of our insurable ris(cid:64) through a captive insurance company(cid:11) Amcor Insurances (cid:43)te
Ltd(cid:11) (cid:76)hich is located in Singapore. Our captive insurance company collects annual premiums from our business groups(cid:11) and
assumes specific ris(cid:64)s relating to various ris(cid:64) e(cid:77)posures(cid:11) including property damage. (cid:47)he captive insurance company may be
required to ma(cid:64)e payment for insurance claims (cid:76)hich e(cid:77)ceed the captive(cid:6)s reserves(cid:11) (cid:76)hich could have an adverse effect on our
business(cid:11) financial condition(cid:11) results of operations(cid:11) or cash flo(cid:76)s.
Legal and Compliance Ris(cid:61)s
(cid:23)(cid:50)(cid:56)e(cid:48)(cid:48)e(cid:39)(cid:56)(cid:57)a(cid:48) (cid:30)ro(cid:52)er(cid:56)(cid:61) (cid:62) (cid:29)(cid:57)r i(cid:50)a(cid:38)i(cid:48)i(cid:56)(cid:61) (cid:56)o (cid:40)efe(cid:50)(cid:40) o(cid:57)r i(cid:50)(cid:56)e(cid:48)(cid:48)e(cid:39)(cid:56)(cid:57)a(cid:48) (cid:52)ro(cid:52)er(cid:56)(cid:61) ri(cid:43)(cid:44)(cid:56)s or i(cid:50)(cid:56)e(cid:48)(cid:48)e(cid:39)(cid:56)(cid:57)a(cid:48) (cid:52)ro(cid:52)er(cid:56)(cid:61) i(cid:50)fri(cid:50)(cid:43)eme(cid:50)(cid:56) (cid:39)(cid:48)aims
a(cid:43)ai(cid:50)s(cid:56) (cid:57)s (cid:39)o(cid:57)(cid:48)(cid:40) (cid:44)a(cid:58)e a(cid:50) a(cid:40)(cid:58)erse im(cid:52)a(cid:39)(cid:56) o(cid:50) o(cid:57)r a(cid:38)i(cid:48)i(cid:56)(cid:61) (cid:56)o (cid:39)om(cid:52)e(cid:56)e effe(cid:39)(cid:56)i(cid:58)e(cid:48)(cid:61)(cid:8)
Our ability to compete effectively depends(cid:11) in part(cid:11) on our ability to protect and maintain the proprietary nature of our
o(cid:76)ned and licensed intellectual property. (cid:50)e o(cid:76)n a number of patents on our products(cid:11) aspects of our products(cid:11) methods of use
and(cid:14)or methods of manufacturing(cid:11) and (cid:76)e o(cid:76)n(cid:11) or have licenses to use(cid:11) the material trademar(cid:64) and trade name rights used in
connection (cid:76)ith the pac(cid:64)aging(cid:11) mar(cid:64)eting and distribution of our ma(cid:63)or products. (cid:50)e also rely on trade secrets(cid:11) (cid:64)no(cid:76)(cid:12)ho(cid:76)(cid:11) and
other unpatented proprietary technology. If (cid:76)e are unable to detect the infringement of our intellectual property or to enforce
our intellectual property rights(cid:11) our competitive position may suffer. (cid:47)he use of our intellectual property by someone else
(cid:76)ithout our authori(cid:79)ation could reduce certain of our competitive advantages(cid:11) cause us to lose sales or other(cid:76)ise harm our
business.
(cid:50)e attempt to protect and restrict access to our intellectual property and proprietary information by relying on the
patent(cid:11) trademar(cid:64)(cid:11) copyright(cid:11) and trade secret la(cid:76)s of the countries in (cid:76)hich (cid:76)e operate(cid:11) as (cid:76)ell as non(cid:12)disclosure agreements.
(cid:35)o(cid:76)ever(cid:11) it may be possible for a third party to obtain our information (cid:76)ithout our authori(cid:79)ation(cid:11) independently develop similar
technologies(cid:11) or breach a non(cid:12)disclosure agreement entered into (cid:76)ith us. Our pending patent applications(cid:11) and our pending
trademar(cid:64) registration applications(cid:11) may not be allo(cid:76)ed or competitors may challenge the validity or scope of our patents or
trademar(cid:64)s. Our competitors might avoid infringement by designing around our intellectual property rights or by developing
non(cid:12)infringing competing technologies. In addition(cid:11) our patents(cid:11) trademar(cid:64)s(cid:11) and other intellectual property rights may not
provide us a significant competitive advantage. Furthermore(cid:11) many of the countries in (cid:76)hich (cid:76)e operate(cid:11) particularly the
emerging mar(cid:64)ets(cid:11) do not have intellectual property la(cid:76)s that protect proprietary rights as fully as the la(cid:76)s of the more
developed (cid:63)urisdictions in (cid:76)hich (cid:76)e operate(cid:11) such as the (cid:48)nited States and the European (cid:48)nion. (cid:47)he costs associated (cid:76)ith
protecting our intellectual property rights could also adversely impact our business.
Similarly(cid:11) (cid:76)hile (cid:76)e have not received any significant claims from third parties suggesting that (cid:76)e may be infringing
on their intellectual property rights(cid:11) there can be no assurance that (cid:76)e (cid:76)ill not receive such claims in the future. If (cid:76)e (cid:76)ere held
liable for a claim of infringement(cid:11) (cid:76)e could be required to pay damages(cid:11) obtain licenses or cease ma(cid:64)ing or selling certain
products. Intellectual property litigation(cid:11) (cid:76)hich could result in substantial cost to us and divert the attention of management(cid:11)
may be necessary to protect our trade secrets or proprietary technology or for us to defend against claimed infringement of the
rights of others and to determine the scope and validity of others(cid:89) proprietary rights. (cid:50)e may not prevail in any such litigation(cid:11)
and if (cid:76)e are unsuccessful(cid:11) (cid:76)e may not be able to obtain any necessary licenses on reasonable terms or at all. Failure to protect
our patents(cid:11) trademar(cid:64)s(cid:11) and other intellectual property rights could have an adverse effect on our business(cid:11) financial condition(cid:11)
results of operations(cid:11) or cash flo(cid:76)s.
(cid:47)here is an increased scrutiny from shareholders(cid:11) customers(cid:11) and governments on corporate ES(cid:34) practices. Our
commitment to sustainability and ES(cid:34) practices remains at the core of our business and (cid:76)e have established goals and targets
related to our commitment. (cid:35)o(cid:76)ever(cid:11) our ES(cid:34) practices may not meet the standards of all of our sta(cid:64)eholders and advocacy
groups may campaign for further changes. (cid:40)any of our large(cid:11) global customers are also committing to long(cid:12)term targets to
reduce greenhouse gas emissions (cid:76)ithin their supply chains. If (cid:76)e are unable to support customers in achieving these
reductions(cid:11) customers may see(cid:64) out competitors (cid:76)ho are better able to support such reductions. A failure(cid:11) or perceived failure(cid:11)
to respond to e(cid:77)pectations of all parties(cid:11) including (cid:76)ith meeting our o(cid:76)n climate(cid:12)related and other ES(cid:34) target ambitions(cid:11) could
cause harm to our business and reputation and have a negative impact on the trading price of our common stoc(cid:64). (cid:41)e(cid:76)
government regulations could also result in ne(cid:76) or more stringent forms of ES(cid:34) oversight and disclosures (cid:76)hich may result in
increased e(cid:77)penditures for environmental controls(cid:11) ne(cid:76) ta(cid:77)es on the products (cid:76)e produce and significantly increase our
compliance costs to meet ne(cid:76) disclosure requirements.
(cid:19)(cid:50)(cid:58)iro(cid:50)me(cid:50)(cid:56)a(cid:48)(cid:6) (cid:22)ea(cid:48)(cid:56)(cid:44)(cid:6) a(cid:50)(cid:40) Safe(cid:56)(cid:61) re(cid:43)(cid:57)(cid:48)a(cid:56)io(cid:50)s (cid:62) (cid:17)(cid:44)a(cid:50)(cid:43)i(cid:50)(cid:43) (cid:43)o(cid:58)er(cid:50)me(cid:50)(cid:56) re(cid:43)(cid:57)(cid:48)a(cid:56)io(cid:50)s i(cid:50) e(cid:50)(cid:58)iro(cid:50)me(cid:50)(cid:56)a(cid:48)(cid:6) (cid:44)ea(cid:48)(cid:56)(cid:44)(cid:6) a(cid:50)(cid:40) safe(cid:56)(cid:61)
ma(cid:56)(cid:56)ers(cid:6) i(cid:50)(cid:39)(cid:48)(cid:57)(cid:40)i(cid:50)(cid:43) (cid:39)(cid:48)ima(cid:56)e (cid:39)(cid:44)a(cid:50)(cid:43)e(cid:6) ma(cid:61) a(cid:40)(cid:58)erse(cid:48)(cid:61) affe(cid:39)(cid:56) o(cid:57)r (cid:39)om(cid:52)a(cid:50)(cid:61)(cid:8)
(cid:41)umerous legislative and regulatory initiatives have been passed and anticipated in response to concerns about
greenhouse gas emissions and climate change. (cid:50)e are a manufacturing entity that utili(cid:79)es petrochemical(cid:12)based ra(cid:76) materials to
produce many of our products. Increased environmental legislation or regulation(cid:11) including regulations related to e(cid:77)tended
producer responsibility ("E(cid:43)(cid:45)")(cid:11) could result in higher costs for us in the form of higher ra(cid:76) material cost(cid:11) increased energy and
freight costs(cid:11) and ne(cid:76) ta(cid:77)es on pac(cid:64)aging products or result in reduced demand. It is possible that certain materials might cease
to be permitted to be used in our processes. (cid:34)overnment bans of(cid:11) or restrictions on certain materials or pac(cid:64)aging formats may
close off mar(cid:64)ets to Amcor(cid:6)s business. (cid:40)andates to use certain types of materials(cid:11) such as post(cid:12)consumer recycled ("(cid:43)C(cid:45)")
content(cid:11) may lead to supply shortages and higher prices for those materials as current recycling rates may be insufficient to meet
increased demand for (cid:43)C(cid:45) (cid:76)ithin and beyond the pac(cid:64)aging industry.
(cid:50)e could also incur additional compliance costs for monitoring and reporting emissions and for maintaining permits.
Additionally(cid:11) a si(cid:79)able portion of our business comes from healthcare pac(cid:64)aging and food and beverage pac(cid:64)aging(cid:11) both highly
regulated mar(cid:64)ets. If (cid:76)e fail to comply (cid:76)ith these regulatory requirements(cid:11) our results of operations could be adversely
impacted.
Tax (cid:26)aw (cid:17)(cid:44)a(cid:50)(cid:43)es (cid:62)(cid:17)(cid:44)a(cid:50)(cid:43)es i(cid:50) (cid:56)ax (cid:48)aws or (cid:39)(cid:44)a(cid:50)(cid:43)es i(cid:50) o(cid:57)r (cid:43)eo(cid:43)ra(cid:52)(cid:44)i(cid:39) mix of ear(cid:50)i(cid:50)(cid:43)s (cid:39)o(cid:57)(cid:48)(cid:40) (cid:44)a(cid:58)e a ma(cid:56)eria(cid:48) im(cid:52)a(cid:39)(cid:56) o(cid:50)
o(cid:57)r fi(cid:50)a(cid:50)(cid:39)ia(cid:48) (cid:39)o(cid:50)(cid:40)i(cid:56)io(cid:50) a(cid:50)(cid:40) res(cid:57)(cid:48)(cid:56)s of o(cid:52)era(cid:56)io(cid:50)(cid:8)
(cid:50)e are sub(cid:63)ect to income and other ta(cid:77)es in the many (cid:63)urisdictions in (cid:76)hich (cid:76)e operate. (cid:47)a(cid:77) la(cid:76)s and regulations are
comple(cid:77) and the determination of our global provision for income ta(cid:77)es and current and deferred ta(cid:77) assets and liabilities
requires (cid:63)udgment and estimation. (cid:50)e are sub(cid:63)ect to routine e(cid:77)aminations of our income ta(cid:77) returns(cid:11) and ta(cid:77) authorities may
disagree (cid:76)ith our ta(cid:77) positions and assess additional ta(cid:77). Our future income ta(cid:77)es could also be negatively impacted by our mi(cid:77)
of earnings in the (cid:63)urisdictions in (cid:76)hich (cid:76)e operate being different than anticipated given differences in statutory ta(cid:77) rates in the
countries in (cid:76)hich (cid:76)e operate. In addition(cid:11) certain ta(cid:77) policy efforts(cid:11) including any ta(cid:77) la(cid:76) changes resulting from the
Organi(cid:79)ation for Economic Cooperation and (cid:31)evelopment ("OEC(cid:31)") and the (cid:34)20(cid:6)s inclusive frame(cid:76)or(cid:64) on Base Erosion and
(cid:43)rofit Shifting ("BE(cid:43)S")(cid:11) could adversely impact our ta(cid:77) rate and subsequent ta(cid:77) e(cid:77)pense. (cid:31)espite the publication of the Anti
(cid:34)lobal Base Erosion model rules and initial commentary(cid:11) there are many open points to be clarified and there is still significant
uncertainty(cid:11) (cid:76)hich (cid:76)e (cid:76)ill continue to monitor until a more conclusive assessment (cid:76)ill be possible.
(cid:26)i(cid:56)i(cid:43)a(cid:56)io(cid:50) (cid:62) (cid:26)i(cid:56)i(cid:43)a(cid:56)io(cid:50)(cid:6) i(cid:50)(cid:39)(cid:48)(cid:57)(cid:40)i(cid:50)(cid:43) (cid:52)ro(cid:40)(cid:57)(cid:39)(cid:56) (cid:48)ia(cid:38)i(cid:48)i(cid:56)(cid:61) (cid:39)(cid:48)aims(cid:6) or re(cid:43)(cid:57)(cid:48)a(cid:56)or(cid:61) (cid:40)e(cid:58)e(cid:48)o(cid:52)me(cid:50)(cid:56)s (cid:39)o(cid:57)(cid:48)(cid:40) a(cid:40)(cid:58)erse(cid:48)(cid:61) affe(cid:39)(cid:56) o(cid:57)r (cid:38)(cid:57)si(cid:50)ess
o(cid:52)era(cid:56)io(cid:50)s(cid:6) a(cid:50)(cid:40) fi(cid:50)a(cid:50)(cid:39)ia(cid:48) (cid:52)erforma(cid:50)(cid:39)e(cid:8)
Ris(cid:61)s Relating to Being a Jersey, Channel Islands Company Listing Ordinary Shares
(cid:50)e are(cid:11) and in the future (cid:76)ill li(cid:64)ely become(cid:11) involved in la(cid:76)suits(cid:11) regulatory inquiries(cid:11) and governmental and other
legal proceedings arising out of the ordinary course of our business. (cid:34)iven our global footprint(cid:11) (cid:76)e are e(cid:77)posed to more
uncertainty regarding the regulatory environment. (cid:47)he timing of the final resolutions to la(cid:76)suits(cid:11) regulatory inquiries(cid:11) and
governmental and other legal proceedings is typically uncertain. Additionally(cid:11) the possible outcomes of(cid:11) or resolutions to(cid:11) these
proceedings could include adverse (cid:63)udgments or settlements(cid:11) either of (cid:76)hich could require substantial payments. In addition(cid:11)
actions (cid:76)e have ta(cid:64)en or may ta(cid:64)e(cid:11) or decisions (cid:76)e have made or may ma(cid:64)e(cid:11) as a consequence of CO(cid:49)I(cid:31)(cid:12)1(cid:24) or the (cid:45)ussia(cid:12)
(cid:48)(cid:64)raine conflict(cid:11) may result in legal claims or litigation against us. (cid:45)efer to "Item 3. (cid:12) Legal (cid:43)roceedings" of this Annual (cid:45)eport
on Form 10(cid:12)(cid:38).
(cid:19)(cid:50)(cid:58)iro(cid:50)me(cid:50)(cid:56)a(cid:48)(cid:6) So(cid:39)ia(cid:48) a(cid:50)(cid:40) (cid:21)o(cid:58)er(cid:50)a(cid:50)(cid:39)e (cid:4)(cid:2)(cid:19)S(cid:21)(cid:2)(cid:5) (cid:30)ra(cid:39)(cid:56)i(cid:39)es (cid:62) (cid:23)(cid:50)(cid:39)reasi(cid:50)(cid:43) s(cid:39)r(cid:57)(cid:56)i(cid:50)(cid:61) a(cid:50)(cid:40) (cid:39)(cid:44)a(cid:50)(cid:43)i(cid:50)(cid:43) ex(cid:52)e(cid:39)(cid:56)a(cid:56)io(cid:50)s from
i(cid:50)(cid:58)es(cid:56)ors(cid:6) (cid:39)(cid:57)s(cid:56)omers(cid:6) a(cid:50)(cid:40) (cid:43)o(cid:58)er(cid:50)me(cid:50)(cid:56)s wi(cid:56)(cid:44) res(cid:52)e(cid:39)(cid:56) (cid:56)o o(cid:57)r (cid:19)S(cid:21) (cid:52)ra(cid:39)(cid:56)i(cid:39)es a(cid:50)(cid:40) (cid:39)ommi(cid:56)me(cid:50)(cid:56)s ma(cid:61) im(cid:52)ose a(cid:40)(cid:40)i(cid:56)io(cid:50)a(cid:48) (cid:39)os(cid:56)s o(cid:50)
(cid:57)s or ex(cid:52)ose (cid:57)s (cid:56)o a(cid:40)(cid:40)i(cid:56)io(cid:50)a(cid:48) ris(cid:47)s(cid:8)
(cid:29)(cid:57)r or(cid:40)i(cid:50)ar(cid:61) s(cid:44)ares are iss(cid:57)e(cid:40) (cid:57)(cid:50)(cid:40)er (cid:56)(cid:44)e (cid:48)aws of (cid:24)erse(cid:61)(cid:6) (cid:17)(cid:44)a(cid:50)(cid:50)e(cid:48) (cid:23)s(cid:48)a(cid:50)(cid:40)s(cid:6) w(cid:44)i(cid:39)(cid:44) ma(cid:61) (cid:50)o(cid:56) (cid:52)ro(cid:58)i(cid:40)e (cid:56)(cid:44)e (cid:48)e(cid:58)e(cid:48) of (cid:48)e(cid:43)a(cid:48) (cid:39)er(cid:56)ai(cid:50)(cid:56)(cid:61)
a(cid:50)(cid:40) (cid:56)ra(cid:50)s(cid:52)are(cid:50)(cid:39)(cid:61) affor(cid:40)e(cid:40) (cid:38)(cid:61) i(cid:50)(cid:39)or(cid:52)ora(cid:56)io(cid:50) i(cid:50) a (cid:34)(cid:8)S(cid:8) (cid:46)(cid:57)ris(cid:40)i(cid:39)(cid:56)io(cid:50) a(cid:50)(cid:40) w(cid:44)i(cid:39)(cid:44) (cid:40)iffer i(cid:50) some res(cid:52)e(cid:39)(cid:56)s (cid:56)o (cid:56)(cid:44)e (cid:48)aws a(cid:52)(cid:52)(cid:48)i(cid:39)a(cid:38)(cid:48)e (cid:56)o
o(cid:56)(cid:44)er (cid:34)(cid:8)S(cid:8) (cid:39)or(cid:52)ora(cid:56)io(cid:50)s(cid:8)
(cid:50)e are organi(cid:79)ed under the la(cid:76)s of (cid:37)ersey(cid:11) Channel Islands(cid:11) a British cro(cid:76)n dependency that is an island located off
the coast of (cid:41)ormandy(cid:11) France. (cid:37)ersey is not a member of the European (cid:48)nion. (cid:37)ersey(cid:11) Channel Islands legislation regarding
companies is largely based on English corporate la(cid:76) principles. (cid:47)he rights of holders of our ordinary shares are governed by
(cid:37)ersey la(cid:76)(cid:11) including the Companies ((cid:37)ersey) La(cid:76) 1(cid:24)(cid:24)1(cid:11) as amended(cid:11) and by the Amcor Articles of Association(cid:11) as may be
amended from time to time. (cid:47)hese rights differ in some respects from the rights of other shareholders in corporations
incorporated in the (cid:48)nited States. Further(cid:11) there can be no assurance that the la(cid:76)s of (cid:37)ersey(cid:11) Channel Islands(cid:11) (cid:76)ill not change in
the future or that they (cid:76)ill serve to protect investors in a similar fashion afforded under corporate la(cid:76) principles in the (cid:48).S.(cid:11)
(cid:76)hich could adversely affect the rights of investors.
21
Amcor Annual Report 2022
22
2(cid:20)
Form 10-K
22
claims made under such policies (cid:76)ill ultimately be paid or that (cid:76)e (cid:76)ill be able to maintain such insurance at acceptable
(cid:47)here is an increased scrutiny from shareholders(cid:11) customers(cid:11) and governments on corporate ES(cid:34) practices. Our
premium cost levels in the future.
Additionally(cid:11) (cid:76)e retain a portion of our insurable ris(cid:64) through a captive insurance company(cid:11) Amcor Insurances (cid:43)te
Ltd(cid:11) (cid:76)hich is located in Singapore. Our captive insurance company collects annual premiums from our business groups(cid:11) and
assumes specific ris(cid:64)s relating to various ris(cid:64) e(cid:77)posures(cid:11) including property damage. (cid:47)he captive insurance company may be
required to ma(cid:64)e payment for insurance claims (cid:76)hich e(cid:77)ceed the captive(cid:6)s reserves(cid:11) (cid:76)hich could have an adverse effect on our
business(cid:11) financial condition(cid:11) results of operations(cid:11) or cash flo(cid:76)s.
Legal and Compliance Ris(cid:61)s
(cid:23)(cid:50)(cid:56)e(cid:48)(cid:48)e(cid:39)(cid:56)(cid:57)a(cid:48) (cid:30)ro(cid:52)er(cid:56)(cid:61) (cid:62) (cid:29)(cid:57)r i(cid:50)a(cid:38)i(cid:48)i(cid:56)(cid:61) (cid:56)o (cid:40)efe(cid:50)(cid:40) o(cid:57)r i(cid:50)(cid:56)e(cid:48)(cid:48)e(cid:39)(cid:56)(cid:57)a(cid:48) (cid:52)ro(cid:52)er(cid:56)(cid:61) ri(cid:43)(cid:44)(cid:56)s or i(cid:50)(cid:56)e(cid:48)(cid:48)e(cid:39)(cid:56)(cid:57)a(cid:48) (cid:52)ro(cid:52)er(cid:56)(cid:61) i(cid:50)fri(cid:50)(cid:43)eme(cid:50)(cid:56) (cid:39)(cid:48)aims
a(cid:43)ai(cid:50)s(cid:56) (cid:57)s (cid:39)o(cid:57)(cid:48)(cid:40) (cid:44)a(cid:58)e a(cid:50) a(cid:40)(cid:58)erse im(cid:52)a(cid:39)(cid:56) o(cid:50) o(cid:57)r a(cid:38)i(cid:48)i(cid:56)(cid:61) (cid:56)o (cid:39)om(cid:52)e(cid:56)e effe(cid:39)(cid:56)i(cid:58)e(cid:48)(cid:61)(cid:8)
Our ability to compete effectively depends(cid:11) in part(cid:11) on our ability to protect and maintain the proprietary nature of our
o(cid:76)ned and licensed intellectual property. (cid:50)e o(cid:76)n a number of patents on our products(cid:11) aspects of our products(cid:11) methods of use
and(cid:14)or methods of manufacturing(cid:11) and (cid:76)e o(cid:76)n(cid:11) or have licenses to use(cid:11) the material trademar(cid:64) and trade name rights used in
connection (cid:76)ith the pac(cid:64)aging(cid:11) mar(cid:64)eting and distribution of our ma(cid:63)or products. (cid:50)e also rely on trade secrets(cid:11) (cid:64)no(cid:76)(cid:12)ho(cid:76)(cid:11) and
other unpatented proprietary technology. If (cid:76)e are unable to detect the infringement of our intellectual property or to enforce
our intellectual property rights(cid:11) our competitive position may suffer. (cid:47)he use of our intellectual property by someone else
(cid:76)ithout our authori(cid:79)ation could reduce certain of our competitive advantages(cid:11) cause us to lose sales or other(cid:76)ise harm our
business.
(cid:50)e attempt to protect and restrict access to our intellectual property and proprietary information by relying on the
patent(cid:11) trademar(cid:64)(cid:11) copyright(cid:11) and trade secret la(cid:76)s of the countries in (cid:76)hich (cid:76)e operate(cid:11) as (cid:76)ell as non(cid:12)disclosure agreements.
(cid:35)o(cid:76)ever(cid:11) it may be possible for a third party to obtain our information (cid:76)ithout our authori(cid:79)ation(cid:11) independently develop similar
technologies(cid:11) or breach a non(cid:12)disclosure agreement entered into (cid:76)ith us. Our pending patent applications(cid:11) and our pending
trademar(cid:64) registration applications(cid:11) may not be allo(cid:76)ed or competitors may challenge the validity or scope of our patents or
trademar(cid:64)s. Our competitors might avoid infringement by designing around our intellectual property rights or by developing
non(cid:12)infringing competing technologies. In addition(cid:11) our patents(cid:11) trademar(cid:64)s(cid:11) and other intellectual property rights may not
provide us a significant competitive advantage. Furthermore(cid:11) many of the countries in (cid:76)hich (cid:76)e operate(cid:11) particularly the
emerging mar(cid:64)ets(cid:11) do not have intellectual property la(cid:76)s that protect proprietary rights as fully as the la(cid:76)s of the more
developed (cid:63)urisdictions in (cid:76)hich (cid:76)e operate(cid:11) such as the (cid:48)nited States and the European (cid:48)nion. (cid:47)he costs associated (cid:76)ith
protecting our intellectual property rights could also adversely impact our business.
Similarly(cid:11) (cid:76)hile (cid:76)e have not received any significant claims from third parties suggesting that (cid:76)e may be infringing
on their intellectual property rights(cid:11) there can be no assurance that (cid:76)e (cid:76)ill not receive such claims in the future. If (cid:76)e (cid:76)ere held
liable for a claim of infringement(cid:11) (cid:76)e could be required to pay damages(cid:11) obtain licenses or cease ma(cid:64)ing or selling certain
products. Intellectual property litigation(cid:11) (cid:76)hich could result in substantial cost to us and divert the attention of management(cid:11)
may be necessary to protect our trade secrets or proprietary technology or for us to defend against claimed infringement of the
rights of others and to determine the scope and validity of others(cid:89) proprietary rights. (cid:50)e may not prevail in any such litigation(cid:11)
and if (cid:76)e are unsuccessful(cid:11) (cid:76)e may not be able to obtain any necessary licenses on reasonable terms or at all. Failure to protect
our patents(cid:11) trademar(cid:64)s(cid:11) and other intellectual property rights could have an adverse effect on our business(cid:11) financial condition(cid:11)
results of operations(cid:11) or cash flo(cid:76)s.
commitment to sustainability and ES(cid:34) practices remains at the core of our business and (cid:76)e have established goals and targets
related to our commitment. (cid:35)o(cid:76)ever(cid:11) our ES(cid:34) practices may not meet the standards of all of our sta(cid:64)eholders and advocacy
groups may campaign for further changes. (cid:40)any of our large(cid:11) global customers are also committing to long(cid:12)term targets to
reduce greenhouse gas emissions (cid:76)ithin their supply chains. If (cid:76)e are unable to support customers in achieving these
reductions(cid:11) customers may see(cid:64) out competitors (cid:76)ho are better able to support such reductions. A failure(cid:11) or perceived failure(cid:11)
to respond to e(cid:77)pectations of all parties(cid:11) including (cid:76)ith meeting our o(cid:76)n climate(cid:12)related and other ES(cid:34) target ambitions(cid:11) could
cause harm to our business and reputation and have a negative impact on the trading price of our common stoc(cid:64). (cid:41)e(cid:76)
government regulations could also result in ne(cid:76) or more stringent forms of ES(cid:34) oversight and disclosures (cid:76)hich may result in
increased e(cid:77)penditures for environmental controls(cid:11) ne(cid:76) ta(cid:77)es on the products (cid:76)e produce and significantly increase our
compliance costs to meet ne(cid:76) disclosure requirements.
(cid:19)(cid:50)(cid:58)iro(cid:50)me(cid:50)(cid:56)a(cid:48)(cid:6) (cid:22)ea(cid:48)(cid:56)(cid:44)(cid:6) a(cid:50)(cid:40) Safe(cid:56)(cid:61) re(cid:43)(cid:57)(cid:48)a(cid:56)io(cid:50)s (cid:62) (cid:17)(cid:44)a(cid:50)(cid:43)i(cid:50)(cid:43) (cid:43)o(cid:58)er(cid:50)me(cid:50)(cid:56) re(cid:43)(cid:57)(cid:48)a(cid:56)io(cid:50)s i(cid:50) e(cid:50)(cid:58)iro(cid:50)me(cid:50)(cid:56)a(cid:48)(cid:6) (cid:44)ea(cid:48)(cid:56)(cid:44)(cid:6) a(cid:50)(cid:40) safe(cid:56)(cid:61)
ma(cid:56)(cid:56)ers(cid:6) i(cid:50)(cid:39)(cid:48)(cid:57)(cid:40)i(cid:50)(cid:43) (cid:39)(cid:48)ima(cid:56)e (cid:39)(cid:44)a(cid:50)(cid:43)e(cid:6) ma(cid:61) a(cid:40)(cid:58)erse(cid:48)(cid:61) affe(cid:39)(cid:56) o(cid:57)r (cid:39)om(cid:52)a(cid:50)(cid:61)(cid:8)
(cid:41)umerous legislative and regulatory initiatives have been passed and anticipated in response to concerns about
greenhouse gas emissions and climate change. (cid:50)e are a manufacturing entity that utili(cid:79)es petrochemical(cid:12)based ra(cid:76) materials to
produce many of our products. Increased environmental legislation or regulation(cid:11) including regulations related to e(cid:77)tended
producer responsibility ("E(cid:43)(cid:45)")(cid:11) could result in higher costs for us in the form of higher ra(cid:76) material cost(cid:11) increased energy and
freight costs(cid:11) and ne(cid:76) ta(cid:77)es on pac(cid:64)aging products or result in reduced demand. It is possible that certain materials might cease
to be permitted to be used in our processes. (cid:34)overnment bans of(cid:11) or restrictions on certain materials or pac(cid:64)aging formats may
close off mar(cid:64)ets to Amcor(cid:6)s business. (cid:40)andates to use certain types of materials(cid:11) such as post(cid:12)consumer recycled ("(cid:43)C(cid:45)")
content(cid:11) may lead to supply shortages and higher prices for those materials as current recycling rates may be insufficient to meet
increased demand for (cid:43)C(cid:45) (cid:76)ithin and beyond the pac(cid:64)aging industry.
(cid:50)e could also incur additional compliance costs for monitoring and reporting emissions and for maintaining permits.
Additionally(cid:11) a si(cid:79)able portion of our business comes from healthcare pac(cid:64)aging and food and beverage pac(cid:64)aging(cid:11) both highly
regulated mar(cid:64)ets. If (cid:76)e fail to comply (cid:76)ith these regulatory requirements(cid:11) our results of operations could be adversely
impacted.
Tax (cid:26)aw (cid:17)(cid:44)a(cid:50)(cid:43)es (cid:62)(cid:17)(cid:44)a(cid:50)(cid:43)es i(cid:50) (cid:56)ax (cid:48)aws or (cid:39)(cid:44)a(cid:50)(cid:43)es i(cid:50) o(cid:57)r (cid:43)eo(cid:43)ra(cid:52)(cid:44)i(cid:39) mix of ear(cid:50)i(cid:50)(cid:43)s (cid:39)o(cid:57)(cid:48)(cid:40) (cid:44)a(cid:58)e a ma(cid:56)eria(cid:48) im(cid:52)a(cid:39)(cid:56) o(cid:50)
o(cid:57)r fi(cid:50)a(cid:50)(cid:39)ia(cid:48) (cid:39)o(cid:50)(cid:40)i(cid:56)io(cid:50) a(cid:50)(cid:40) res(cid:57)(cid:48)(cid:56)s of o(cid:52)era(cid:56)io(cid:50)(cid:8)
(cid:50)e are sub(cid:63)ect to income and other ta(cid:77)es in the many (cid:63)urisdictions in (cid:76)hich (cid:76)e operate. (cid:47)a(cid:77) la(cid:76)s and regulations are
comple(cid:77) and the determination of our global provision for income ta(cid:77)es and current and deferred ta(cid:77) assets and liabilities
requires (cid:63)udgment and estimation. (cid:50)e are sub(cid:63)ect to routine e(cid:77)aminations of our income ta(cid:77) returns(cid:11) and ta(cid:77) authorities may
disagree (cid:76)ith our ta(cid:77) positions and assess additional ta(cid:77). Our future income ta(cid:77)es could also be negatively impacted by our mi(cid:77)
of earnings in the (cid:63)urisdictions in (cid:76)hich (cid:76)e operate being different than anticipated given differences in statutory ta(cid:77) rates in the
countries in (cid:76)hich (cid:76)e operate. In addition(cid:11) certain ta(cid:77) policy efforts(cid:11) including any ta(cid:77) la(cid:76) changes resulting from the
Organi(cid:79)ation for Economic Cooperation and (cid:31)evelopment ("OEC(cid:31)") and the (cid:34)20(cid:6)s inclusive frame(cid:76)or(cid:64) on Base Erosion and
(cid:43)rofit Shifting ("BE(cid:43)S")(cid:11) could adversely impact our ta(cid:77) rate and subsequent ta(cid:77) e(cid:77)pense. (cid:31)espite the publication of the Anti
(cid:34)lobal Base Erosion model rules and initial commentary(cid:11) there are many open points to be clarified and there is still significant
uncertainty(cid:11) (cid:76)hich (cid:76)e (cid:76)ill continue to monitor until a more conclusive assessment (cid:76)ill be possible.
(cid:26)i(cid:56)i(cid:43)a(cid:56)io(cid:50) (cid:62) (cid:26)i(cid:56)i(cid:43)a(cid:56)io(cid:50)(cid:6) i(cid:50)(cid:39)(cid:48)(cid:57)(cid:40)i(cid:50)(cid:43) (cid:52)ro(cid:40)(cid:57)(cid:39)(cid:56) (cid:48)ia(cid:38)i(cid:48)i(cid:56)(cid:61) (cid:39)(cid:48)aims(cid:6) or re(cid:43)(cid:57)(cid:48)a(cid:56)or(cid:61) (cid:40)e(cid:58)e(cid:48)o(cid:52)me(cid:50)(cid:56)s (cid:39)o(cid:57)(cid:48)(cid:40) a(cid:40)(cid:58)erse(cid:48)(cid:61) affe(cid:39)(cid:56) o(cid:57)r (cid:38)(cid:57)si(cid:50)ess
o(cid:52)era(cid:56)io(cid:50)s(cid:6) a(cid:50)(cid:40) fi(cid:50)a(cid:50)(cid:39)ia(cid:48) (cid:52)erforma(cid:50)(cid:39)e(cid:8)
Ris(cid:61)s Relating to Being a Jersey, Channel Islands Company Listing Ordinary Shares
(cid:50)e are(cid:11) and in the future (cid:76)ill li(cid:64)ely become(cid:11) involved in la(cid:76)suits(cid:11) regulatory inquiries(cid:11) and governmental and other
legal proceedings arising out of the ordinary course of our business. (cid:34)iven our global footprint(cid:11) (cid:76)e are e(cid:77)posed to more
uncertainty regarding the regulatory environment. (cid:47)he timing of the final resolutions to la(cid:76)suits(cid:11) regulatory inquiries(cid:11) and
governmental and other legal proceedings is typically uncertain. Additionally(cid:11) the possible outcomes of(cid:11) or resolutions to(cid:11) these
proceedings could include adverse (cid:63)udgments or settlements(cid:11) either of (cid:76)hich could require substantial payments. In addition(cid:11)
actions (cid:76)e have ta(cid:64)en or may ta(cid:64)e(cid:11) or decisions (cid:76)e have made or may ma(cid:64)e(cid:11) as a consequence of CO(cid:49)I(cid:31)(cid:12)1(cid:24) or the (cid:45)ussia(cid:12)
(cid:48)(cid:64)raine conflict(cid:11) may result in legal claims or litigation against us. (cid:45)efer to "Item 3. (cid:12) Legal (cid:43)roceedings" of this Annual (cid:45)eport
on Form 10(cid:12)(cid:38).
(cid:19)(cid:50)(cid:58)iro(cid:50)me(cid:50)(cid:56)a(cid:48)(cid:6) So(cid:39)ia(cid:48) a(cid:50)(cid:40) (cid:21)o(cid:58)er(cid:50)a(cid:50)(cid:39)e (cid:4)(cid:2)(cid:19)S(cid:21)(cid:2)(cid:5) (cid:30)ra(cid:39)(cid:56)i(cid:39)es (cid:62) (cid:23)(cid:50)(cid:39)reasi(cid:50)(cid:43) s(cid:39)r(cid:57)(cid:56)i(cid:50)(cid:61) a(cid:50)(cid:40) (cid:39)(cid:44)a(cid:50)(cid:43)i(cid:50)(cid:43) ex(cid:52)e(cid:39)(cid:56)a(cid:56)io(cid:50)s from
i(cid:50)(cid:58)es(cid:56)ors(cid:6) (cid:39)(cid:57)s(cid:56)omers(cid:6) a(cid:50)(cid:40) (cid:43)o(cid:58)er(cid:50)me(cid:50)(cid:56)s wi(cid:56)(cid:44) res(cid:52)e(cid:39)(cid:56) (cid:56)o o(cid:57)r (cid:19)S(cid:21) (cid:52)ra(cid:39)(cid:56)i(cid:39)es a(cid:50)(cid:40) (cid:39)ommi(cid:56)me(cid:50)(cid:56)s ma(cid:61) im(cid:52)ose a(cid:40)(cid:40)i(cid:56)io(cid:50)a(cid:48) (cid:39)os(cid:56)s o(cid:50)
(cid:57)s or ex(cid:52)ose (cid:57)s (cid:56)o a(cid:40)(cid:40)i(cid:56)io(cid:50)a(cid:48) ris(cid:47)s(cid:8)
(cid:29)(cid:57)r or(cid:40)i(cid:50)ar(cid:61) s(cid:44)ares are iss(cid:57)e(cid:40) (cid:57)(cid:50)(cid:40)er (cid:56)(cid:44)e (cid:48)aws of (cid:24)erse(cid:61)(cid:6) (cid:17)(cid:44)a(cid:50)(cid:50)e(cid:48) (cid:23)s(cid:48)a(cid:50)(cid:40)s(cid:6) w(cid:44)i(cid:39)(cid:44) ma(cid:61) (cid:50)o(cid:56) (cid:52)ro(cid:58)i(cid:40)e (cid:56)(cid:44)e (cid:48)e(cid:58)e(cid:48) of (cid:48)e(cid:43)a(cid:48) (cid:39)er(cid:56)ai(cid:50)(cid:56)(cid:61)
a(cid:50)(cid:40) (cid:56)ra(cid:50)s(cid:52)are(cid:50)(cid:39)(cid:61) affor(cid:40)e(cid:40) (cid:38)(cid:61) i(cid:50)(cid:39)or(cid:52)ora(cid:56)io(cid:50) i(cid:50) a (cid:34)(cid:8)S(cid:8) (cid:46)(cid:57)ris(cid:40)i(cid:39)(cid:56)io(cid:50) a(cid:50)(cid:40) w(cid:44)i(cid:39)(cid:44) (cid:40)iffer i(cid:50) some res(cid:52)e(cid:39)(cid:56)s (cid:56)o (cid:56)(cid:44)e (cid:48)aws a(cid:52)(cid:52)(cid:48)i(cid:39)a(cid:38)(cid:48)e (cid:56)o
o(cid:56)(cid:44)er (cid:34)(cid:8)S(cid:8) (cid:39)or(cid:52)ora(cid:56)io(cid:50)s(cid:8)
(cid:50)e are organi(cid:79)ed under the la(cid:76)s of (cid:37)ersey(cid:11) Channel Islands(cid:11) a British cro(cid:76)n dependency that is an island located off
the coast of (cid:41)ormandy(cid:11) France. (cid:37)ersey is not a member of the European (cid:48)nion. (cid:37)ersey(cid:11) Channel Islands legislation regarding
companies is largely based on English corporate la(cid:76) principles. (cid:47)he rights of holders of our ordinary shares are governed by
(cid:37)ersey la(cid:76)(cid:11) including the Companies ((cid:37)ersey) La(cid:76) 1(cid:24)(cid:24)1(cid:11) as amended(cid:11) and by the Amcor Articles of Association(cid:11) as may be
amended from time to time. (cid:47)hese rights differ in some respects from the rights of other shareholders in corporations
incorporated in the (cid:48)nited States. Further(cid:11) there can be no assurance that the la(cid:76)s of (cid:37)ersey(cid:11) Channel Islands(cid:11) (cid:76)ill not change in
the future or that they (cid:76)ill serve to protect investors in a similar fashion afforded under corporate la(cid:76) principles in the (cid:48).S.(cid:11)
(cid:76)hich could adversely affect the rights of investors.
21
22
Amcor Annual Report 2022
Form 10-K
2(cid:22)
(cid:34)(cid:8)S(cid:8) s(cid:44)are(cid:44)o(cid:48)(cid:40)ers ma(cid:61) (cid:50)o(cid:56) (cid:38)e a(cid:38)(cid:48)e (cid:56)o e(cid:50)for(cid:39)e (cid:39)i(cid:58)i(cid:48) (cid:48)ia(cid:38)i(cid:48)i(cid:56)ies a(cid:43)ai(cid:50)s(cid:56) (cid:57)s(cid:8)
Item 1B(cid:12) - (cid:45)nresolved Staff Comments
A significant portion of our assets are located outside of the (cid:48)nited States and several of our directors and officers are
(cid:41)one.
citi(cid:79)ens or residents of (cid:63)urisdictions outside of the (cid:48)nited States. As a result(cid:11) it may be difficult for investors to successfully
serve a claim (cid:76)ithin the (cid:48)nited States upon those non(cid:12)(cid:48).S. directors and officers(cid:11) or to enforce (cid:63)udgments reali(cid:79)ed in the (cid:48)nited
States.
Item 2(cid:12) - Properties
(cid:37)udgments of (cid:48).S. courts may not be directly enforceable outside of the (cid:48).S. and the enforcement of (cid:63)udgments of
(cid:48).S. courts outside of the (cid:48).S.(cid:11) including those in Australia and (cid:37)ersey(cid:11) may be sub(cid:63)ect to limitations. Investors may also have
difficulties pursuing an original action brought in a court in a (cid:63)urisdiction outside the (cid:48).S.(cid:11) including Australia and (cid:37)ersey(cid:11) for
liabilities under the securities la(cid:76)s of the (cid:48).S. Additionally(cid:11) our Articles of Association provide that (cid:76)hile the (cid:45)oyal Court of
(cid:37)ersey (cid:76)ill have non(cid:12)e(cid:77)clusive (cid:63)urisdiction over actions brought against us(cid:11) the (cid:45)oyal Court of (cid:37)ersey (cid:76)ill be the sole and
e(cid:77)clusive forum for derivative shareholder actions(cid:11) actions for breach of fiduciary duty by our directors and officers(cid:11) actions
arising out of Companies ((cid:37)ersey) La(cid:76) 1(cid:24)(cid:24)1(cid:11) as amended(cid:11) or actions asserting a claim against our directors or officers governed
by the internal affairs doctrine. (cid:47)he e(cid:77)clusive forum provision (cid:76)ould not prevent derivative shareholder actions based on claims
arising under (cid:48).S. federal securities la(cid:76)s from being raised in a (cid:48).S. court and (cid:76)ould not prevent a (cid:48).S. court from asserting
(cid:63)urisdiction over such claims. (cid:35)o(cid:76)ever(cid:11) there is uncertainty (cid:76)hether a (cid:48).S. or (cid:37)ersey court (cid:76)ould enforce the e(cid:77)clusive forum
provision for actions claiming breach of fiduciary duty and other claims.
(cid:50)e consider our plants and other physical properties(cid:11) (cid:76)hether o(cid:76)ned or leased(cid:11) to be suitable(cid:11) adequate(cid:11) and of
sufficient productive capacity to meet the requirements of our business. Our manufacturing plants operate at varying levels of
utili(cid:79)ation depending on the type of operation and mar(cid:64)et conditions. (cid:47)he brea(cid:64)do(cid:76)n of our significant manufacturing and
support facilities at (cid:37)une 30(cid:11) 2022 (cid:76)ere as follo(cid:76)s(cid:25)
(cid:47)his segment has 16(cid:24) significant manufacturing and support facilities located in 3(cid:24) countries(cid:11) of (cid:76)hich 118 are o(cid:76)ned
directly by us and 51 are leased from outside parties. Initial building lease terms typically provide for minimum terms in a range
of t(cid:76)o to 36 years and have one or more rene(cid:76)al options.
(cid:47)his segment has 52 significant manufacturing and support facilities located in 11 countries(cid:11) of (cid:76)hich 12 are o(cid:76)ned
directly by us and 40 are leased from outside parties. Initial building lease terms typically provide for minimum terms in a range
of t(cid:76)o to 20 years and have one or more rene(cid:76)al options.
Our primary e(cid:77)ecutive offices are located in (cid:53)urich(cid:11) S(cid:76)it(cid:79)erland.
(cid:45)efer to (cid:41)ote 20(cid:11) "Contingencies and Legal (cid:43)roceedings(cid:11)" of the notes to consolidated financial statements for
Fle(cid:74)ibles Segment
Rigid Pac(cid:61)aging Segment
Corporate and (cid:31)eneral
Item 3(cid:12) - Legal Proceedings
information about legal proceedings.
Item (cid:18)(cid:12) - (cid:37)ine Safety Disclosures
(cid:41)ot applicable.
23
Amcor Annual Report 2022
24
2(cid:22)
Form 10-K
2(cid:23)
(cid:34)(cid:8)S(cid:8) s(cid:44)are(cid:44)o(cid:48)(cid:40)ers ma(cid:61) (cid:50)o(cid:56) (cid:38)e a(cid:38)(cid:48)e (cid:56)o e(cid:50)for(cid:39)e (cid:39)i(cid:58)i(cid:48) (cid:48)ia(cid:38)i(cid:48)i(cid:56)ies a(cid:43)ai(cid:50)s(cid:56) (cid:57)s(cid:8)
Item 1B(cid:12) - (cid:45)nresolved Staff Comments
A significant portion of our assets are located outside of the (cid:48)nited States and several of our directors and officers are
(cid:41)one.
citi(cid:79)ens or residents of (cid:63)urisdictions outside of the (cid:48)nited States. As a result(cid:11) it may be difficult for investors to successfully
serve a claim (cid:76)ithin the (cid:48)nited States upon those non(cid:12)(cid:48).S. directors and officers(cid:11) or to enforce (cid:63)udgments reali(cid:79)ed in the (cid:48)nited
Item 2(cid:12) - Properties
States.
(cid:37)udgments of (cid:48).S. courts may not be directly enforceable outside of the (cid:48).S. and the enforcement of (cid:63)udgments of
(cid:48).S. courts outside of the (cid:48).S.(cid:11) including those in Australia and (cid:37)ersey(cid:11) may be sub(cid:63)ect to limitations. Investors may also have
difficulties pursuing an original action brought in a court in a (cid:63)urisdiction outside the (cid:48).S.(cid:11) including Australia and (cid:37)ersey(cid:11) for
liabilities under the securities la(cid:76)s of the (cid:48).S. Additionally(cid:11) our Articles of Association provide that (cid:76)hile the (cid:45)oyal Court of
(cid:37)ersey (cid:76)ill have non(cid:12)e(cid:77)clusive (cid:63)urisdiction over actions brought against us(cid:11) the (cid:45)oyal Court of (cid:37)ersey (cid:76)ill be the sole and
e(cid:77)clusive forum for derivative shareholder actions(cid:11) actions for breach of fiduciary duty by our directors and officers(cid:11) actions
arising out of Companies ((cid:37)ersey) La(cid:76) 1(cid:24)(cid:24)1(cid:11) as amended(cid:11) or actions asserting a claim against our directors or officers governed
by the internal affairs doctrine. (cid:47)he e(cid:77)clusive forum provision (cid:76)ould not prevent derivative shareholder actions based on claims
arising under (cid:48).S. federal securities la(cid:76)s from being raised in a (cid:48).S. court and (cid:76)ould not prevent a (cid:48).S. court from asserting
(cid:63)urisdiction over such claims. (cid:35)o(cid:76)ever(cid:11) there is uncertainty (cid:76)hether a (cid:48).S. or (cid:37)ersey court (cid:76)ould enforce the e(cid:77)clusive forum
provision for actions claiming breach of fiduciary duty and other claims.
(cid:50)e consider our plants and other physical properties(cid:11) (cid:76)hether o(cid:76)ned or leased(cid:11) to be suitable(cid:11) adequate(cid:11) and of
sufficient productive capacity to meet the requirements of our business. Our manufacturing plants operate at varying levels of
utili(cid:79)ation depending on the type of operation and mar(cid:64)et conditions. (cid:47)he brea(cid:64)do(cid:76)n of our significant manufacturing and
support facilities at (cid:37)une 30(cid:11) 2022 (cid:76)ere as follo(cid:76)s(cid:25)
Fle(cid:74)ibles Segment
(cid:47)his segment has 16(cid:24) significant manufacturing and support facilities located in 3(cid:24) countries(cid:11) of (cid:76)hich 118 are o(cid:76)ned
directly by us and 51 are leased from outside parties. Initial building lease terms typically provide for minimum terms in a range
of t(cid:76)o to 36 years and have one or more rene(cid:76)al options.
Rigid Pac(cid:61)aging Segment
(cid:47)his segment has 52 significant manufacturing and support facilities located in 11 countries(cid:11) of (cid:76)hich 12 are o(cid:76)ned
directly by us and 40 are leased from outside parties. Initial building lease terms typically provide for minimum terms in a range
of t(cid:76)o to 20 years and have one or more rene(cid:76)al options.
Corporate and (cid:31)eneral
Our primary e(cid:77)ecutive offices are located in (cid:53)urich(cid:11) S(cid:76)it(cid:79)erland.
Item 3(cid:12) - Legal Proceedings
(cid:45)efer to (cid:41)ote 20(cid:11) "Contingencies and Legal (cid:43)roceedings(cid:11)" of the notes to consolidated financial statements for
information about legal proceedings.
Item (cid:18)(cid:12) - (cid:37)ine Safety Disclosures
(cid:41)ot applicable.
23
24
Amcor Annual Report 2022
Form 10-K
2(cid:24)
PAR(cid:44) II
Shareholder Return Performance
Item (cid:19)(cid:12) - (cid:37)ar(cid:61)et for Registrant(cid:6)s E(cid:67)uity, Related Stoc(cid:61)holder (cid:37)atters and Issuer Purchases of E(cid:67)uity Securities
Our ordinary shares are traded on the (cid:41)e(cid:76) (cid:52)or(cid:64) Stoc(cid:64) E(cid:77)change (the "(cid:41)(cid:52)SE") under the symbol A(cid:40)C(cid:45) and our
C(cid:35)ESS (cid:31)epositary Instruments ("C(cid:31)Is") are traded on the Australian Securities E(cid:77)change (the "AS(cid:51)") under the symbol
A(cid:40)C. As of (cid:37)une 30(cid:11) 2022(cid:11) there (cid:76)ere 105(cid:11)788 registered holders of record of our ordinary shares and C(cid:31)Is.
(cid:47)he information under this caption "Shareholder (cid:45)eturn (cid:43)erformance" in this Item 5 of this Annual (cid:45)eport on Form
10(cid:12)(cid:38) is not deemed to be "soliciting material" or to be "filed" (cid:76)ith the SEC or sub(cid:63)ect to (cid:45)egulation 14A or 14C under the
E(cid:77)change Act(cid:11) or to the liabilities of Section 18 of the E(cid:77)change Act and (cid:76)ill not be deemed to be incorporated by reference
into any filing under the Securities Act of 1(cid:24)33(cid:11) as amended(cid:11) or the E(cid:77)change Act(cid:11) e(cid:77)cept to the e(cid:77)tent (cid:76)e specifically
incorporate it by reference into such a filing.
Share Repurchases
Share repurchase activity during the three months ended (cid:37)une 30(cid:11) 2022 (cid:76)as as follo(cid:76)s (in millions(cid:11) e(cid:77)cept number of
the AS(cid:51) 200 Inde(cid:77) for the period beginning (cid:37)une 11(cid:11) 201(cid:24). (cid:47)he graph assumes $100 (cid:76)as invested on (cid:37)une 11(cid:11) 201(cid:24)(cid:11) and that
shares(cid:11) (cid:76)hich are reflected in thousands(cid:11) and per share amounts(cid:11) (cid:76)hich are e(cid:77)pressed in (cid:48).S. dollars)(cid:25)
(cid:44)otal (cid:38)umber of
Shares Purchased (1)
Average Price Paid
Per Share (1)(2)
(cid:44)otal (cid:38)umber of
Shares Purchased as
Part of Publicly
Announced Plans or
Programs
Appro(cid:74)imate Dollar
Value of Shares (cid:44)hat
(cid:37)ay Yet Be
Purchased (cid:45)nder the
Programs (3)
(cid:85) $
11(cid:11)324
3(cid:11)423
1(cid:18),(cid:21)(cid:18)(cid:21) (cid:3)
(cid:85)
12.62
13.24
12(cid:12)(cid:21)(cid:20)
(cid:85) $
10(cid:11)324
3(cid:11)423
13,(cid:21)(cid:18)(cid:21)
178
45
(cid:85)
Period
April 1 (cid:12) 30(cid:11) 2022
(cid:40)ay 1 (cid:12) 31(cid:11) 2022
(cid:37)une 1 (cid:12) 30(cid:11) 2022
(cid:44)otal
Includes shares purchased on the open mar(cid:64)et to satisfy the vesting and e(cid:77)ercises of share(cid:12)based compensation a(cid:76)ards.
(1)
(2) Average price paid per share e(cid:77)cludes costs associated (cid:76)ith the repurchase.
(3) On August 17(cid:11) 2021(cid:11) our Board of (cid:31)irectors approved a buybac(cid:64) of $400 million of ordinary shares and(cid:14)or C(cid:35)ESS (cid:31)epositary
Instruments ("C(cid:31)Is") during the follo(cid:76)ing t(cid:76)elve months. In addition(cid:11) on February 1(cid:11) 2022(cid:11) our Board of (cid:31)irectors approved an
additional $200 million buybac(cid:64) of ordinary shares and C(cid:31)Is during the ne(cid:77)t t(cid:76)elve months. Both buybac(cid:64) programs have been
completed as of (cid:37)une 30(cid:11) 2022. On August 17(cid:11) 2022(cid:11) our Board of (cid:31)irectors approved a further $400 million buybac(cid:64) of ordinary
shares and(cid:14)or C(cid:35)ESS (cid:31)epositary Instruments ("C(cid:31)Is") during the ne(cid:77)t t(cid:76)elve months. (cid:47)he timing(cid:11) volume(cid:11) and nature of share
repurchases may be amended(cid:11) suspended(cid:11) or discontinued at any time.
(cid:47)he line graph belo(cid:76) compares the annual percentage change in Amcor plc(cid:6)s cumulative total shareholder return on its
ordinary shares (cid:76)ith the cumulative total return of its (cid:43)eer (cid:34)roup(cid:11) International (cid:43)ac(cid:64)aging (cid:43)eer (cid:34)roup(cid:11) the S(cid:5)(cid:43) 500 Inde(cid:77)(cid:11) and
all dividends (cid:76)ere reinvested. (cid:47)he Company has elected to change the composition of the presented peer group from the
International (cid:43)ac(cid:64)aging (cid:43)eer (cid:34)roup to a ne(cid:76) (cid:43)eer (cid:34)roup(cid:11) the composition of (cid:76)hich is detailed later in this section. (cid:47)he
Company believes that the ne(cid:76) (cid:43)eer (cid:34)roup provides investors (cid:76)ith more relevant information about the Company(cid:6)s total
shareholder return and relative performance against comparable companies both in Australia and internationally. As of (cid:37)une 30(cid:11)
2022(cid:11) the Company presents a transition total shareholder return graph that incorporates both (cid:43)eer (cid:34)roup and International
(cid:43)ac(cid:64)aging (cid:43)eer (cid:34)roup.
June 11,
201(cid:23)
June 30,
201(cid:23)
June 30,
2020
June 30,
2021
June 30,
2022
100.00 $
102.77 $
(cid:24)5.68 $
111.82 $
126.13
100.00 $
107.05 $
115.08 $
162.03 $
144.83
100.00 $
102.08 $
(cid:24)3.5(cid:24) $
131.41 $
114.86
100.00 $
100.12 $
104.54 $
124.7(cid:24) $
126.34
$
$
$
$
$
International (cid:43)ac(cid:64)aging (cid:43)eer (cid:34)roup
100.00 $
101.55 $
(cid:24)1.28 $
135.67 $
114.23
Amcor plc
S(cid:5)(cid:43) 500
S(cid:5)(cid:43)(cid:14)AS(cid:51) 200
(cid:43)eer (cid:34)roup
25
Amcor Annual Report 2022
26
2(cid:24)
Form 10-K
2(cid:25)
PAR(cid:44) II
Shareholder Return Performance
Item (cid:19)(cid:12) - (cid:37)ar(cid:61)et for Registrant(cid:6)s E(cid:67)uity, Related Stoc(cid:61)holder (cid:37)atters and Issuer Purchases of E(cid:67)uity Securities
Our ordinary shares are traded on the (cid:41)e(cid:76) (cid:52)or(cid:64) Stoc(cid:64) E(cid:77)change (the "(cid:41)(cid:52)SE") under the symbol A(cid:40)C(cid:45) and our
C(cid:35)ESS (cid:31)epositary Instruments ("C(cid:31)Is") are traded on the Australian Securities E(cid:77)change (the "AS(cid:51)") under the symbol
A(cid:40)C. As of (cid:37)une 30(cid:11) 2022(cid:11) there (cid:76)ere 105(cid:11)788 registered holders of record of our ordinary shares and C(cid:31)Is.
(cid:47)he information under this caption "Shareholder (cid:45)eturn (cid:43)erformance" in this Item 5 of this Annual (cid:45)eport on Form
10(cid:12)(cid:38) is not deemed to be "soliciting material" or to be "filed" (cid:76)ith the SEC or sub(cid:63)ect to (cid:45)egulation 14A or 14C under the
E(cid:77)change Act(cid:11) or to the liabilities of Section 18 of the E(cid:77)change Act and (cid:76)ill not be deemed to be incorporated by reference
into any filing under the Securities Act of 1(cid:24)33(cid:11) as amended(cid:11) or the E(cid:77)change Act(cid:11) e(cid:77)cept to the e(cid:77)tent (cid:76)e specifically
incorporate it by reference into such a filing.
(cid:47)he line graph belo(cid:76) compares the annual percentage change in Amcor plc(cid:6)s cumulative total shareholder return on its
ordinary shares (cid:76)ith the cumulative total return of its (cid:43)eer (cid:34)roup(cid:11) International (cid:43)ac(cid:64)aging (cid:43)eer (cid:34)roup(cid:11) the S(cid:5)(cid:43) 500 Inde(cid:77)(cid:11) and
the AS(cid:51) 200 Inde(cid:77) for the period beginning (cid:37)une 11(cid:11) 201(cid:24). (cid:47)he graph assumes $100 (cid:76)as invested on (cid:37)une 11(cid:11) 201(cid:24)(cid:11) and that
all dividends (cid:76)ere reinvested. (cid:47)he Company has elected to change the composition of the presented peer group from the
International (cid:43)ac(cid:64)aging (cid:43)eer (cid:34)roup to a ne(cid:76) (cid:43)eer (cid:34)roup(cid:11) the composition of (cid:76)hich is detailed later in this section. (cid:47)he
Company believes that the ne(cid:76) (cid:43)eer (cid:34)roup provides investors (cid:76)ith more relevant information about the Company(cid:6)s total
shareholder return and relative performance against comparable companies both in Australia and internationally. As of (cid:37)une 30(cid:11)
2022(cid:11) the Company presents a transition total shareholder return graph that incorporates both (cid:43)eer (cid:34)roup and International
(cid:43)ac(cid:64)aging (cid:43)eer (cid:34)roup.
Share Repurchases
Share repurchase activity during the three months ended (cid:37)une 30(cid:11) 2022 (cid:76)as as follo(cid:76)s (in millions(cid:11) e(cid:77)cept number of
shares(cid:11) (cid:76)hich are reflected in thousands(cid:11) and per share amounts(cid:11) (cid:76)hich are e(cid:77)pressed in (cid:48).S. dollars)(cid:25)
(cid:44)otal (cid:38)umber of
Shares Purchased (1)
Average Price Paid
Per Share (1)(2)
(cid:44)otal (cid:38)umber of
Shares Purchased as
Part of Publicly
Appro(cid:74)imate Dollar
Value of Shares (cid:44)hat
(cid:37)ay Yet Be
Announced Plans or
Purchased (cid:45)nder the
Programs
Programs (3)
(cid:85) $
11(cid:11)324
3(cid:11)423
1(cid:18),(cid:21)(cid:18)(cid:21) (cid:3)
(cid:85)
12.62
13.24
12(cid:12)(cid:21)(cid:20)
(cid:85) $
10(cid:11)324
3(cid:11)423
13,(cid:21)(cid:18)(cid:21)
178
45
(cid:85)
Period
April 1 (cid:12) 30(cid:11) 2022
(cid:40)ay 1 (cid:12) 31(cid:11) 2022
(cid:37)une 1 (cid:12) 30(cid:11) 2022
(cid:44)otal
(1)
Includes shares purchased on the open mar(cid:64)et to satisfy the vesting and e(cid:77)ercises of share(cid:12)based compensation a(cid:76)ards.
(2) Average price paid per share e(cid:77)cludes costs associated (cid:76)ith the repurchase.
(3) On August 17(cid:11) 2021(cid:11) our Board of (cid:31)irectors approved a buybac(cid:64) of $400 million of ordinary shares and(cid:14)or C(cid:35)ESS (cid:31)epositary
Instruments ("C(cid:31)Is") during the follo(cid:76)ing t(cid:76)elve months. In addition(cid:11) on February 1(cid:11) 2022(cid:11) our Board of (cid:31)irectors approved an
additional $200 million buybac(cid:64) of ordinary shares and C(cid:31)Is during the ne(cid:77)t t(cid:76)elve months. Both buybac(cid:64) programs have been
completed as of (cid:37)une 30(cid:11) 2022. On August 17(cid:11) 2022(cid:11) our Board of (cid:31)irectors approved a further $400 million buybac(cid:64) of ordinary
shares and(cid:14)or C(cid:35)ESS (cid:31)epositary Instruments ("C(cid:31)Is") during the ne(cid:77)t t(cid:76)elve months. (cid:47)he timing(cid:11) volume(cid:11) and nature of share
repurchases may be amended(cid:11) suspended(cid:11) or discontinued at any time.
Amcor plc
S(cid:5)(cid:43) 500
S(cid:5)(cid:43)(cid:14)AS(cid:51) 200
(cid:43)eer (cid:34)roup
International (cid:43)ac(cid:64)aging (cid:43)eer (cid:34)roup
June 11,
201(cid:23)
June 30,
201(cid:23)
June 30,
2020
June 30,
2021
June 30,
2022
$
$
$
$
$
100.00 $
102.77 $
(cid:24)5.68 $
111.82 $
126.13
100.00 $
107.05 $
115.08 $
162.03 $
144.83
100.00 $
102.08 $
(cid:24)3.5(cid:24) $
131.41 $
114.86
100.00 $
100.12 $
104.54 $
124.7(cid:24) $
126.34
100.00 $
101.55 $
(cid:24)1.28 $
135.67 $
114.23
25
26
Amcor Annual Report 2022
(cid:47)he (cid:43)eer (cid:34)roup consists of Ansell Limited(cid:11) Aptar(cid:34)roup(cid:11) Inc.(cid:11) Avery (cid:31)ennison Corporation(cid:11) Ball Corporation(cid:11) Berry
Item (cid:21)(cid:12) - (cid:37)anagement(cid:6)s Discussion and Analysis of Financial Condition and Results of Operations
Form 10-K
2(cid:26)
(cid:34)lobal (cid:34)roup(cid:11) Inc.(cid:11) Brambles Limited(cid:11) Coles (cid:34)roup Limited(cid:11) Conagra Brands Inc.(cid:11) Cro(cid:76)n (cid:35)oldings(cid:11) Inc.(cid:11) (cid:31)anone SA(cid:11) (cid:34)eneral
(cid:40)ills Inc.(cid:11) (cid:34)raphic (cid:43)ac(cid:64)aging (cid:35)olding Co(cid:11) (cid:35)uhtama(cid:64)i Oy(cid:63)(cid:11) International (cid:43)aper Company(cid:11) (cid:37)ohnson (cid:5) (cid:37)ohnson(cid:11) (cid:47)he (cid:38)raft (cid:35)ein(cid:79)
Company(cid:11) (cid:40)ondele(cid:79) International(cid:11) Inc.(cid:11) (cid:41)estl(cid:80) S.A.(cid:11) O(cid:12)I (cid:34)lass(cid:11) Inc.(cid:11) Orora Limited(cid:11) (cid:43)epsico(cid:11) Inc.(cid:11) (cid:47)he (cid:43)rocter (cid:5) (cid:34)amble
Company(cid:11) Sealed Air Corporation(cid:11) Silgan (cid:35)oldings Inc.(cid:11) Sonoco (cid:43)roducts Company(cid:11) (cid:47)reasury (cid:50)ine Estates Limited(cid:11) (cid:48)nilever
(cid:43)LC(cid:11) (cid:50)esfarmers Limited(cid:11) (cid:50)est(cid:45)oc(cid:64) Company(cid:11) and (cid:50)ool(cid:76)orths (cid:34)roup Limited.
(cid:47)he International (cid:43)ac(cid:64)aging (cid:43)eer (cid:34)roup consists of Aptar(cid:34)roup(cid:11) Inc.(cid:11) Ball Corporation(cid:11) Berry (cid:34)lobal (cid:34)roup(cid:11) Inc.(cid:11)
CCL Industries Inc.(cid:11) Cro(cid:76)n (cid:35)oldings(cid:11) Inc.(cid:11) (cid:34)raphic (cid:43)ac(cid:64)aging (cid:35)olding Company(cid:11) (cid:35)uhtama(cid:64)i Oy(cid:63)(cid:11) International (cid:43)aper
Company(cid:11) (cid:40)ayr(cid:12)(cid:40)elnhof (cid:38)arton A(cid:34)(cid:11) O(cid:12)I (cid:34)lass(cid:11) Inc.(cid:11) Sealed Air Corporation(cid:11) Silgan (cid:35)oldings Inc.(cid:11) Sonoco (cid:43)roducts
Company(cid:11) and (cid:50)est(cid:45)oc(cid:64) Company. (cid:47)he International (cid:43)ac(cid:64)aging (cid:43)eer (cid:34)roup has been replaced by the (cid:43)eer (cid:34)roup and (cid:76)ill not
be published in future Annual (cid:45)eports on Form 10(cid:12)(cid:38).
(cid:27)anagement(cid:60)(cid:53) (cid:18)(cid:44)(cid:53)(cid:38)(cid:55)(cid:53)(cid:53)(cid:44)on and (cid:16)nal(cid:59)(cid:53)(cid:44)(cid:53) (cid:53)(cid:43)o(cid:55)ld (cid:37)e read (cid:44)n (cid:38)on(cid:45)(cid:55)n(cid:38)t(cid:44)on w(cid:44)t(cid:43) t(cid:43)e Con(cid:53)ol(cid:44)dated F(cid:44)nan(cid:38)(cid:44)al (cid:32)tatement(cid:53) and related
(cid:28)ote(cid:53) (cid:44)n(cid:38)l(cid:55)ded (cid:44)n Item (cid:15) o(cid:41) t(cid:43)(cid:44)(cid:53) (cid:16)nn(cid:55)al (cid:31)e(cid:51)ort on Form (cid:10)(cid:9)-(cid:25)(cid:7)
(cid:44)wo Year Review of Results
(in millions)
(cid:41)et sales
Cost of sales
(cid:34)ross profit
Operating e(cid:77)penses(cid:25)
Selling(cid:11) general(cid:11) and administrative e(cid:77)penses
(cid:45)esearch and development e(cid:77)penses
(cid:45)estructuring(cid:11) impairment(cid:11) and related e(cid:77)penses(cid:11) net
Other income(cid:11) net
Operating income
Interest income
Interest e(cid:77)pense
Other non(cid:12)operating income(cid:11) net
2022
2021
$
14(cid:11)544
100.0 (cid:4) $
12(cid:11)861
100.0 (cid:4)
(11(cid:11)724)
(80.6)
(10(cid:11)12(cid:24))
(78.8)
2(cid:11)820
1(cid:24).4
2(cid:11)732
21.2
(1(cid:11)284)
((cid:24)6)
(234)
33
(8.8)
(0.7)
(1.6)
0.2
(1(cid:11)2(cid:24)2)
(10.0)
(100)
((cid:24)4)
75
(0.8)
(0.7)
0.6
1(cid:11)23(cid:24)
8.5
1(cid:11)321
10.3
24
(15(cid:24))
11
0.2
(1.1)
0.1
14
(153)
11
0.1
(1.2)
0.1
Income from continuing operations before income ta(cid:77)es and equity in income(cid:14)
(loss) of affiliated companies
1(cid:11)115
7.7
1(cid:11)1(cid:24)3
(cid:24).3
Income ta(cid:77) e(cid:77)pense
Equity in income(cid:14)(loss) of affiliated companies(cid:11) net of ta(cid:77)
(300)
(cid:85)
(2.1)
(cid:85)
(261)
1(cid:24)
(2.0)
0.1
(cid:38)et income
(cid:3)
(cid:22)1(cid:19)
(cid:19)(cid:12)(cid:20) (cid:4) (cid:3)
(cid:23)(cid:19)1
(cid:21)(cid:12)(cid:18) (cid:4)
(cid:41)et income attributable to non(cid:12)controlling interests
(10)
(0.1)
(12)
(0.1)
(cid:38)et income attributable to Amcor plc
(cid:3)
(cid:22)0(cid:19)
(cid:19)(cid:12)(cid:19) (cid:4) (cid:3)
(cid:23)3(cid:23)
(cid:21)(cid:12)3 (cid:4)
27
Amcor Annual Report 2022
28
(cid:47)he (cid:43)eer (cid:34)roup consists of Ansell Limited(cid:11) Aptar(cid:34)roup(cid:11) Inc.(cid:11) Avery (cid:31)ennison Corporation(cid:11) Ball Corporation(cid:11) Berry
Item (cid:21)(cid:12) - (cid:37)anagement(cid:6)s Discussion and Analysis of Financial Condition and Results of Operations
(cid:34)lobal (cid:34)roup(cid:11) Inc.(cid:11) Brambles Limited(cid:11) Coles (cid:34)roup Limited(cid:11) Conagra Brands Inc.(cid:11) Cro(cid:76)n (cid:35)oldings(cid:11) Inc.(cid:11) (cid:31)anone SA(cid:11) (cid:34)eneral
(cid:40)ills Inc.(cid:11) (cid:34)raphic (cid:43)ac(cid:64)aging (cid:35)olding Co(cid:11) (cid:35)uhtama(cid:64)i Oy(cid:63)(cid:11) International (cid:43)aper Company(cid:11) (cid:37)ohnson (cid:5) (cid:37)ohnson(cid:11) (cid:47)he (cid:38)raft (cid:35)ein(cid:79)
Company(cid:11) (cid:40)ondele(cid:79) International(cid:11) Inc.(cid:11) (cid:41)estl(cid:80) S.A.(cid:11) O(cid:12)I (cid:34)lass(cid:11) Inc.(cid:11) Orora Limited(cid:11) (cid:43)epsico(cid:11) Inc.(cid:11) (cid:47)he (cid:43)rocter (cid:5) (cid:34)amble
Company(cid:11) Sealed Air Corporation(cid:11) Silgan (cid:35)oldings Inc.(cid:11) Sonoco (cid:43)roducts Company(cid:11) (cid:47)reasury (cid:50)ine Estates Limited(cid:11) (cid:48)nilever
(cid:27)anagement(cid:60)(cid:53) (cid:18)(cid:44)(cid:53)(cid:38)(cid:55)(cid:53)(cid:53)(cid:44)on and (cid:16)nal(cid:59)(cid:53)(cid:44)(cid:53) (cid:53)(cid:43)o(cid:55)ld (cid:37)e read (cid:44)n (cid:38)on(cid:45)(cid:55)n(cid:38)t(cid:44)on w(cid:44)t(cid:43) t(cid:43)e Con(cid:53)ol(cid:44)dated F(cid:44)nan(cid:38)(cid:44)al (cid:32)tatement(cid:53) and related
(cid:28)ote(cid:53) (cid:44)n(cid:38)l(cid:55)ded (cid:44)n Item (cid:15) o(cid:41) t(cid:43)(cid:44)(cid:53) (cid:16)nn(cid:55)al (cid:31)e(cid:51)ort on Form (cid:10)(cid:9)-(cid:25)(cid:7)
2(cid:26)
Form 10-K
2(cid:27)
(cid:43)LC(cid:11) (cid:50)esfarmers Limited(cid:11) (cid:50)est(cid:45)oc(cid:64) Company(cid:11) and (cid:50)ool(cid:76)orths (cid:34)roup Limited.
(cid:44)wo Year Review of Results
(cid:47)he International (cid:43)ac(cid:64)aging (cid:43)eer (cid:34)roup consists of Aptar(cid:34)roup(cid:11) Inc.(cid:11) Ball Corporation(cid:11) Berry (cid:34)lobal (cid:34)roup(cid:11) Inc.(cid:11)
CCL Industries Inc.(cid:11) Cro(cid:76)n (cid:35)oldings(cid:11) Inc.(cid:11) (cid:34)raphic (cid:43)ac(cid:64)aging (cid:35)olding Company(cid:11) (cid:35)uhtama(cid:64)i Oy(cid:63)(cid:11) International (cid:43)aper
Company(cid:11) (cid:40)ayr(cid:12)(cid:40)elnhof (cid:38)arton A(cid:34)(cid:11) O(cid:12)I (cid:34)lass(cid:11) Inc.(cid:11) Sealed Air Corporation(cid:11) Silgan (cid:35)oldings Inc.(cid:11) Sonoco (cid:43)roducts
Company(cid:11) and (cid:50)est(cid:45)oc(cid:64) Company. (cid:47)he International (cid:43)ac(cid:64)aging (cid:43)eer (cid:34)roup has been replaced by the (cid:43)eer (cid:34)roup and (cid:76)ill not
be published in future Annual (cid:45)eports on Form 10(cid:12)(cid:38).
(in millions)
(cid:41)et sales
Cost of sales
(cid:34)ross profit
Operating e(cid:77)penses(cid:25)
Selling(cid:11) general(cid:11) and administrative e(cid:77)penses
(cid:45)esearch and development e(cid:77)penses
(cid:45)estructuring(cid:11) impairment(cid:11) and related e(cid:77)penses(cid:11) net
Other income(cid:11) net
Operating income
Interest income
Interest e(cid:77)pense
Other non(cid:12)operating income(cid:11) net
2022
2021
$
14(cid:11)544
100.0 (cid:4) $
12(cid:11)861
100.0 (cid:4)
(11(cid:11)724)
(80.6)
(10(cid:11)12(cid:24))
(78.8)
2(cid:11)820
1(cid:24).4
2(cid:11)732
21.2
(1(cid:11)284)
((cid:24)6)
(234)
33
(8.8)
(0.7)
(1.6)
0.2
(1(cid:11)2(cid:24)2)
(10.0)
(100)
((cid:24)4)
75
(0.8)
(0.7)
0.6
1(cid:11)23(cid:24)
8.5
1(cid:11)321
10.3
24
(15(cid:24))
11
0.2
(1.1)
0.1
14
(153)
11
0.1
(1.2)
0.1
Income from continuing operations before income ta(cid:77)es and equity in income(cid:14)
(loss) of affiliated companies
1(cid:11)115
7.7
1(cid:11)1(cid:24)3
(cid:24).3
Income ta(cid:77) e(cid:77)pense
Equity in income(cid:14)(loss) of affiliated companies(cid:11) net of ta(cid:77)
(300)
(cid:85)
(2.1)
(cid:85)
(261)
1(cid:24)
(2.0)
0.1
(cid:38)et income
(cid:3)
(cid:22)1(cid:19)
(cid:19)(cid:12)(cid:20) (cid:4) (cid:3)
(cid:23)(cid:19)1
(cid:21)(cid:12)(cid:18) (cid:4)
(cid:41)et income attributable to non(cid:12)controlling interests
(10)
(0.1)
(12)
(0.1)
(cid:38)et income attributable to Amcor plc
(cid:3)
(cid:22)0(cid:19)
(cid:19)(cid:12)(cid:19) (cid:4) (cid:3)
(cid:23)3(cid:23)
(cid:21)(cid:12)3 (cid:4)
27
28
Amcor Annual Report 2022
Form 10-K
2(cid:28)
Overview
Amcor is a global leader in developing and producing responsible pac(cid:64)aging for food(cid:11) beverage(cid:11) pharmaceutical(cid:11)
medical(cid:11) home and personal(cid:12)care(cid:11) and other products. (cid:50)e (cid:76)or(cid:64) (cid:76)ith leading companies around the (cid:76)orld to protect their
products and the people (cid:76)ho rely on them(cid:11) differentiate brands(cid:11) and improve supply chains through a range of fle(cid:77)ible and rigid
pac(cid:64)aging(cid:11) specialty cartons(cid:11) closures(cid:11) and services. (cid:50)e are focused on ma(cid:64)ing pac(cid:64)aging that is increasingly light(cid:12)(cid:76)eighted(cid:11)
recyclable and reusable(cid:11) and made using an increasing amount of recycled content. (cid:31)uring fiscal year 2022(cid:11) Amcor generated
$14.5 billion in sales from operations that spanned 221 locations in over 40 countries.
Since our decision in (cid:40)arch 2022 to scale bac(cid:64) our (cid:45)ussian operations(cid:11) (cid:76)e have remained committed to continuing to
support our (cid:45)ussian and (cid:48)(cid:64)raine employees and customers. (cid:50)e are proactively ta(cid:64)ing steps to mitigate the financial impact of
e(cid:77)iting our (cid:45)ussian operations(cid:11) including ad(cid:63)usting our European footprint to reallocate and consolidate volumes from (cid:45)ussia
and (cid:48)(cid:64)raine to leverage utili(cid:79)ation and deliver enhanced efficiencies across Central and (cid:50)estern Europe(cid:11) as (cid:76)ell as ta(cid:64)ing
actions to restructure our regional cost base. In addition to the $(cid:24)0 million in impairment charges on assets held for sale(cid:11) (cid:76)e
incurred $48 million in other impairment charges given the e(cid:77)pectation that certain assets not held for sale in the conflict region
(cid:76)ill not be recoverable(cid:11) and $62 million in restructuring and other costs in the fourth quarter of fiscal year 2022 related to the
(cid:45)ussia(cid:12)(cid:48)(cid:64)raine conflict. (cid:50)e e(cid:77)pect appro(cid:77)imately $30 million in additional restructuring and other costs in fiscal year 2023
Significant Items Affecting the Periods Presented
(cid:23)m(cid:52)a(cid:39)(cid:56) of (cid:17)(cid:29)(cid:35)(cid:23)(cid:18)(cid:7)(cid:11)(cid:14)
(cid:50)e continue to monitor the impact of the ongoing 201(cid:24) (cid:41)ovel Coronavirus ("CO(cid:49)I(cid:31)(cid:12)1(cid:24)") pandemic on all aspects of
our business. (cid:47)he CO(cid:49)I(cid:31)(cid:12)1(cid:24) pandemic has resulted in intermittent regional government restrictions on the movement of
people(cid:11) goods(cid:11) and non(cid:12)essential services resulting in a period of historic uncertainty and challenges. (cid:50)e remain focused on our
commitment to the health and safety of our employees as our first priority. (cid:50)e e(cid:77)pect to continue to evaluate our response and
related precautions until the CO(cid:49)I(cid:31)(cid:12)1(cid:24) pandemic has been fully resolved as a public health crisis.
(cid:50)e have e(cid:77)perienced minimal disruptions to our operations to date as (cid:76)e have largely been deemed as providing
essential services. Our facilities have largely been e(cid:77)empt from government mandated closure orders and (cid:76)hile governmental
measures may be modified(cid:11) (cid:76)e e(cid:77)pect that our facilities (cid:76)ill remain operational given the essential products (cid:76)e supply.
(cid:35)o(cid:76)ever(cid:11) despite our best efforts to contain the impact in our facilities(cid:11) it remains possible that significant disruptions could
occur as a result of the pandemic(cid:11) including temporary closures of our facilities due to outbrea(cid:64)s of the virus among our
(cid:76)or(cid:64)force or government mandates.
(cid:50)e continue to believe (cid:76)e are (cid:76)ell(cid:12)positioned to meet the challenges of the ongoing CO(cid:49)I(cid:31)(cid:12)1(cid:24) pandemic. (cid:35)o(cid:76)ever(cid:11)
(cid:76)e cannot reasonably estimate the duration and severity of this pandemic or its ultimate impact on the global economy and our
operations and financial results. (cid:47)he ultimate near(cid:12)term impact of the pandemic on our business (cid:76)ill depend on the e(cid:77)tent and
nature of any future disruptions across the supply chain(cid:11) the implementation of further social distancing measures and other
government(cid:12)imposed restrictions(cid:11) as (cid:76)ell as the nature and pace of macroeconomic recovery in (cid:64)ey global economies.
Raw (cid:27)a(cid:56)eria(cid:48)(cid:6) (cid:23)(cid:50)f(cid:48)a(cid:56)io(cid:50)(cid:6) a(cid:50)(cid:40) S(cid:57)(cid:52)(cid:52)(cid:48)(cid:61) (cid:17)(cid:44)ai(cid:50) Tre(cid:50)(cid:40)s
(cid:31)uring fiscal year 2022(cid:11) (cid:76)e e(cid:77)perienced persistent supply shortages and price volatility of certain resins and ra(cid:76)
materials in both of our reportable segments as a result of mar(cid:64)et dynamics that first materiali(cid:79)ed in the second half of fiscal
year 2021 and higher rates of regional inflation impacting energy(cid:11) fuel(cid:11) and labor costs. (cid:47)he underlying causes for the volatility
can be attributed to a variety of factors(cid:11) including the ongoing impacts of the CO(cid:49)I(cid:31)(cid:12)1(cid:24) pandemic resulting in labor shortages
and transportation constraints(cid:11) energy shortages and (cid:76)eather disruptions impacting ra(cid:76) material supply in certain regions. (cid:47)he
comple(cid:77) factors driving ongoing mar(cid:64)et volatility continue and could be further e(cid:77)acerbated by the continuation of the (cid:45)ussia(cid:12)
(cid:48)(cid:64)raine conflict. (cid:50)e intend to continue to (cid:76)or(cid:64) closely (cid:76)ith our suppliers and customers(cid:11) leveraging our global capabilities and
e(cid:77)pertise to (cid:76)or(cid:64) through supply and other resulting issues.
So(cid:57)(cid:56)(cid:44) (cid:15)fri(cid:39)a (cid:20)ire
On (cid:37)uly 13(cid:11) 2021(cid:11) our (cid:31)urban(cid:11) South Africa(cid:11) manufacturing facility (cid:76)as destroyed by fire associated (cid:76)ith general civil
unrest. (cid:47)he facility employed 350 individuals and no employees (cid:76)ere in(cid:63)ured as the facility had been closed in advance of the
disturbance. In fiscal year 2022(cid:11) (cid:76)e recorded $45 million in e(cid:77)pense before insurance settlements(cid:11) primarily related to
inventory(cid:11) property(cid:11) and equipment losses from the fire and other related e(cid:77)penses. (cid:50)e have insurance for the ma(cid:63)ority of
property and other losses resulting from the fire and have received $33 million in insurance settlements in fiscal year 2022.
R(cid:57)ssia(cid:7)(cid:34)(cid:47)rai(cid:50)e (cid:17)o(cid:50)f(cid:48)i(cid:39)(cid:56)
(cid:22)i(cid:43)(cid:44)(cid:48)(cid:61) (cid:23)(cid:50)f(cid:48)a(cid:56)io(cid:50)ar(cid:61) (cid:15)(cid:39)(cid:39)o(cid:57)(cid:50)(cid:56)i(cid:50)(cid:43)
(cid:45)ussia(cid:6)s invasion of (cid:48)(cid:64)raine that began in February 2022 continues as of the date of the filing of this annual report. In
advance of the invasion(cid:11) (cid:76)e proactively suspended operations at our small manufacturing site in (cid:48)(cid:64)raine. (cid:50)e also operate three
manufacturing facilities in (cid:45)ussia. In the fourth quarter of fiscal year 2022(cid:11) after a thorough revie(cid:76) of our strategic options(cid:11) (cid:76)e
committed to sell our (cid:45)ussian operations(cid:11) (cid:76)hich resulted in a non(cid:12)cash $(cid:24)0 million impairment charge.
2(cid:24)
Amcor Annual Report 2022
30
For further information(cid:11) refer to (cid:41)ote 4(cid:11) "(cid:45)estructuring(cid:11) Impairment(cid:11) and (cid:45)elated E(cid:77)penses(cid:11) net(cid:11)" (cid:41)ote 6(cid:11) "(cid:35)eld for
Sale and (cid:31)iscontinued Operations(cid:11)" and (cid:41)ote 7(cid:11) "(cid:45)estructuring" of "(cid:43)art II(cid:11) Item 8(cid:11) (cid:41)otes to Consolidated Financial
related to our e(cid:77)it decision.
Statements."
(cid:12)(cid:10)(cid:11)(cid:14) (cid:16)emis (cid:23)(cid:50)(cid:56)e(cid:43)ra(cid:56)io(cid:50) (cid:30)(cid:48)a(cid:50)
In connection (cid:76)ith the acquisition of Bemis Company(cid:11) Inc. ("Bemis")(cid:11) (cid:76)e initiated restructuring activities in the fourth
quarter of 201(cid:24) aimed at integrating and optimi(cid:79)ing the combined organi(cid:79)ation. (cid:50)e have e(cid:77)ceeded the targeted pre(cid:12)ta(cid:77)
synergies of $180 million by appro(cid:77)imately 10(cid:4) driven by procurement(cid:11) supply chain and general and administrative savings
as of (cid:37)une 30(cid:11) 2022.
(cid:47)he 201(cid:24) Bemis Integration (cid:43)lan (cid:76)as completed by (cid:37)une 30(cid:11) 2022(cid:11) (cid:76)ith final pre(cid:12)ta(cid:77) integration cost amounting to
$253 million. (cid:47)he total 201(cid:24) Bemis Integration (cid:43)lan cost includes $213 million of restructuring and related e(cid:77)penses(cid:11) net(cid:11) and
$40 million of general integration e(cid:77)penses. (cid:47)he net cash e(cid:77)penditures for the plan(cid:11) including disposal proceeds(cid:11) are $170
million(cid:11) of (cid:76)hich $40 million relates to general integration e(cid:77)penses. As part of this (cid:43)lan(cid:11) (cid:76)e have incurred $144 million in
employee related e(cid:77)penses(cid:11) $36 million in fi(cid:77)ed asset related e(cid:77)penses(cid:11) $3(cid:24) million in other restructuring and $45 million in
restructuring related e(cid:77)penses(cid:11) partially offset by a gain on disposal of a business of $51 million. In fiscal year 2022(cid:11) the (cid:43)lan
resulted in net cash outflo(cid:76)s of $4(cid:24) million of (cid:76)hich $47 million (cid:76)ere payments related to restructuring and related
e(cid:77)penditures. (cid:47)he remaining cash outflo(cid:76) (cid:76)ill be primarily incurred in fiscal year 2023.
(cid:12)(cid:10)(cid:11)(cid:13) Ri(cid:43)i(cid:40) (cid:30)a(cid:39)(cid:47)a(cid:43)i(cid:50)(cid:43) Res(cid:56)r(cid:57)(cid:39)(cid:56)(cid:57)ri(cid:50)(cid:43) (cid:30)(cid:48)a(cid:50)
On August 21(cid:11) 2018(cid:11) (cid:76)e announced a restructuring plan in Amcor (cid:45)igid (cid:43)ac(cid:64)aging ("2018 (cid:45)igid (cid:43)ac(cid:64)aging
(cid:45)estructuring (cid:43)lan") aimed at reducing structural costs and optimi(cid:79)ing the footprint. (cid:47)he (cid:43)lan included the closures of
manufacturing facilities and headcount reductions to achieve manufacturing footprint optimi(cid:79)ation and productivity
improvements(cid:11) as (cid:76)ell as overhead cost reductions.
(cid:47)he 2018 (cid:45)igid (cid:43)ac(cid:64)aging (cid:45)estructuring (cid:43)lan (cid:76)as completed by (cid:37)une 30(cid:11) 2021 (cid:76)ith total pre(cid:12)ta(cid:77) restructuring costs of
$121 million(cid:11) of (cid:76)hich $78 million resulted in cash e(cid:77)penditures(cid:11) (cid:76)ith the main component being the cost to e(cid:77)it manufacturing
facilities and employee related costs.
For more information about our restructuring plans(cid:11) refer to (cid:41)ote 7(cid:11) "(cid:45)estructuring."
(cid:19)(cid:53)(cid:57)i(cid:56)(cid:61) (cid:27)e(cid:56)(cid:44)o(cid:40) (cid:23)(cid:50)(cid:58)es(cid:56)me(cid:50)(cid:56) (cid:7) (cid:15)(cid:27)(cid:35)(cid:23)(cid:21) (cid:22)o(cid:48)(cid:40)i(cid:50)(cid:43)s (cid:26)imi(cid:56)e(cid:40) (cid:4)(cid:2)(cid:15)(cid:27)(cid:35)(cid:23)(cid:21)(cid:2)(cid:5)
(cid:50)e sold our equity method investment in A(cid:40)(cid:49)I(cid:34) on September 30(cid:11) 2020(cid:11) reali(cid:79)ing a net gain of $15 million(cid:11) (cid:76)hich
(cid:76)as recorded in equity in income(cid:14)(loss) of affiliated companies(cid:11) net of ta(cid:77) in the consolidated statements of income. (cid:43)rior to the
sale and due to impairment indicators being present for the year ended (cid:37)une 30(cid:11) 2020(cid:11) (cid:76)e performed impairment tests by
comparing the carrying value of our investment in A(cid:40)(cid:49)I(cid:34) to the fair value of the investment(cid:11) (cid:76)hich (cid:76)as determined based on
A(cid:40)(cid:49)I(cid:34)(cid:6)s quoted share price. (cid:50)e recorded an impairment charge of $26 million in fiscal year 2020(cid:11) as the fair value of the
investment (cid:76)as belo(cid:76) its carrying value. (cid:45)efer to (cid:41)ote 8(cid:11) "Equity (cid:40)ethod and Other Investments."
(cid:50)e have subsidiaries in Argentina that historically had a functional currency of the Argentine (cid:43)eso. As of (cid:37)une 30(cid:11)
2018(cid:11) the Argentine economy (cid:76)as designated as highly inflationary for accounting purposes. Accordingly(cid:11) beginning (cid:37)uly 1(cid:11)
2018(cid:11) (cid:76)e began reporting the financial results of our Argentine subsidiaries (cid:76)ith a functional currency of the (cid:48).S. dollar. (cid:47)he
transition to highly inflationary accounting resulted in a negative impact on monetary balances of $16 million(cid:11) $1(cid:24) million(cid:11) and
$28 million that (cid:76)as reflected in the consolidated statements of income for the fiscal years ended (cid:37)une 30(cid:11) 2022(cid:11) 2021(cid:11) and
2020(cid:11) respectively.
2(cid:28)
Form 10-K
(cid:22)0
Overview
Amcor is a global leader in developing and producing responsible pac(cid:64)aging for food(cid:11) beverage(cid:11) pharmaceutical(cid:11)
medical(cid:11) home and personal(cid:12)care(cid:11) and other products. (cid:50)e (cid:76)or(cid:64) (cid:76)ith leading companies around the (cid:76)orld to protect their
products and the people (cid:76)ho rely on them(cid:11) differentiate brands(cid:11) and improve supply chains through a range of fle(cid:77)ible and rigid
pac(cid:64)aging(cid:11) specialty cartons(cid:11) closures(cid:11) and services. (cid:50)e are focused on ma(cid:64)ing pac(cid:64)aging that is increasingly light(cid:12)(cid:76)eighted(cid:11)
recyclable and reusable(cid:11) and made using an increasing amount of recycled content. (cid:31)uring fiscal year 2022(cid:11) Amcor generated
$14.5 billion in sales from operations that spanned 221 locations in over 40 countries.
Significant Items Affecting the Periods Presented
(cid:23)m(cid:52)a(cid:39)(cid:56) of (cid:17)(cid:29)(cid:35)(cid:23)(cid:18)(cid:7)(cid:11)(cid:14)
(cid:50)e continue to monitor the impact of the ongoing 201(cid:24) (cid:41)ovel Coronavirus ("CO(cid:49)I(cid:31)(cid:12)1(cid:24)") pandemic on all aspects of
our business. (cid:47)he CO(cid:49)I(cid:31)(cid:12)1(cid:24) pandemic has resulted in intermittent regional government restrictions on the movement of
people(cid:11) goods(cid:11) and non(cid:12)essential services resulting in a period of historic uncertainty and challenges. (cid:50)e remain focused on our
commitment to the health and safety of our employees as our first priority. (cid:50)e e(cid:77)pect to continue to evaluate our response and
related precautions until the CO(cid:49)I(cid:31)(cid:12)1(cid:24) pandemic has been fully resolved as a public health crisis.
(cid:50)e have e(cid:77)perienced minimal disruptions to our operations to date as (cid:76)e have largely been deemed as providing
essential services. Our facilities have largely been e(cid:77)empt from government mandated closure orders and (cid:76)hile governmental
measures may be modified(cid:11) (cid:76)e e(cid:77)pect that our facilities (cid:76)ill remain operational given the essential products (cid:76)e supply.
(cid:35)o(cid:76)ever(cid:11) despite our best efforts to contain the impact in our facilities(cid:11) it remains possible that significant disruptions could
occur as a result of the pandemic(cid:11) including temporary closures of our facilities due to outbrea(cid:64)s of the virus among our
(cid:76)or(cid:64)force or government mandates.
(cid:50)e continue to believe (cid:76)e are (cid:76)ell(cid:12)positioned to meet the challenges of the ongoing CO(cid:49)I(cid:31)(cid:12)1(cid:24) pandemic. (cid:35)o(cid:76)ever(cid:11)
(cid:76)e cannot reasonably estimate the duration and severity of this pandemic or its ultimate impact on the global economy and our
operations and financial results. (cid:47)he ultimate near(cid:12)term impact of the pandemic on our business (cid:76)ill depend on the e(cid:77)tent and
nature of any future disruptions across the supply chain(cid:11) the implementation of further social distancing measures and other
government(cid:12)imposed restrictions(cid:11) as (cid:76)ell as the nature and pace of macroeconomic recovery in (cid:64)ey global economies.
Raw (cid:27)a(cid:56)eria(cid:48)(cid:6) (cid:23)(cid:50)f(cid:48)a(cid:56)io(cid:50)(cid:6) a(cid:50)(cid:40) S(cid:57)(cid:52)(cid:52)(cid:48)(cid:61) (cid:17)(cid:44)ai(cid:50) Tre(cid:50)(cid:40)s
(cid:31)uring fiscal year 2022(cid:11) (cid:76)e e(cid:77)perienced persistent supply shortages and price volatility of certain resins and ra(cid:76)
materials in both of our reportable segments as a result of mar(cid:64)et dynamics that first materiali(cid:79)ed in the second half of fiscal
year 2021 and higher rates of regional inflation impacting energy(cid:11) fuel(cid:11) and labor costs. (cid:47)he underlying causes for the volatility
can be attributed to a variety of factors(cid:11) including the ongoing impacts of the CO(cid:49)I(cid:31)(cid:12)1(cid:24) pandemic resulting in labor shortages
and transportation constraints(cid:11) energy shortages and (cid:76)eather disruptions impacting ra(cid:76) material supply in certain regions. (cid:47)he
comple(cid:77) factors driving ongoing mar(cid:64)et volatility continue and could be further e(cid:77)acerbated by the continuation of the (cid:45)ussia(cid:12)
(cid:48)(cid:64)raine conflict. (cid:50)e intend to continue to (cid:76)or(cid:64) closely (cid:76)ith our suppliers and customers(cid:11) leveraging our global capabilities and
e(cid:77)pertise to (cid:76)or(cid:64) through supply and other resulting issues.
So(cid:57)(cid:56)(cid:44) (cid:15)fri(cid:39)a (cid:20)ire
R(cid:57)ssia(cid:7)(cid:34)(cid:47)rai(cid:50)e (cid:17)o(cid:50)f(cid:48)i(cid:39)(cid:56)
On (cid:37)uly 13(cid:11) 2021(cid:11) our (cid:31)urban(cid:11) South Africa(cid:11) manufacturing facility (cid:76)as destroyed by fire associated (cid:76)ith general civil
unrest. (cid:47)he facility employed 350 individuals and no employees (cid:76)ere in(cid:63)ured as the facility had been closed in advance of the
disturbance. In fiscal year 2022(cid:11) (cid:76)e recorded $45 million in e(cid:77)pense before insurance settlements(cid:11) primarily related to
inventory(cid:11) property(cid:11) and equipment losses from the fire and other related e(cid:77)penses. (cid:50)e have insurance for the ma(cid:63)ority of
property and other losses resulting from the fire and have received $33 million in insurance settlements in fiscal year 2022.
(cid:45)ussia(cid:6)s invasion of (cid:48)(cid:64)raine that began in February 2022 continues as of the date of the filing of this annual report. In
advance of the invasion(cid:11) (cid:76)e proactively suspended operations at our small manufacturing site in (cid:48)(cid:64)raine. (cid:50)e also operate three
manufacturing facilities in (cid:45)ussia. In the fourth quarter of fiscal year 2022(cid:11) after a thorough revie(cid:76) of our strategic options(cid:11) (cid:76)e
committed to sell our (cid:45)ussian operations(cid:11) (cid:76)hich resulted in a non(cid:12)cash $(cid:24)0 million impairment charge.
Since our decision in (cid:40)arch 2022 to scale bac(cid:64) our (cid:45)ussian operations(cid:11) (cid:76)e have remained committed to continuing to
support our (cid:45)ussian and (cid:48)(cid:64)raine employees and customers. (cid:50)e are proactively ta(cid:64)ing steps to mitigate the financial impact of
e(cid:77)iting our (cid:45)ussian operations(cid:11) including ad(cid:63)usting our European footprint to reallocate and consolidate volumes from (cid:45)ussia
and (cid:48)(cid:64)raine to leverage utili(cid:79)ation and deliver enhanced efficiencies across Central and (cid:50)estern Europe(cid:11) as (cid:76)ell as ta(cid:64)ing
actions to restructure our regional cost base. In addition to the $(cid:24)0 million in impairment charges on assets held for sale(cid:11) (cid:76)e
incurred $48 million in other impairment charges given the e(cid:77)pectation that certain assets not held for sale in the conflict region
(cid:76)ill not be recoverable(cid:11) and $62 million in restructuring and other costs in the fourth quarter of fiscal year 2022 related to the
(cid:45)ussia(cid:12)(cid:48)(cid:64)raine conflict. (cid:50)e e(cid:77)pect appro(cid:77)imately $30 million in additional restructuring and other costs in fiscal year 2023
related to our e(cid:77)it decision.
For further information(cid:11) refer to (cid:41)ote 4(cid:11) "(cid:45)estructuring(cid:11) Impairment(cid:11) and (cid:45)elated E(cid:77)penses(cid:11) net(cid:11)" (cid:41)ote 6(cid:11) "(cid:35)eld for
Sale and (cid:31)iscontinued Operations(cid:11)" and (cid:41)ote 7(cid:11) "(cid:45)estructuring" of "(cid:43)art II(cid:11) Item 8(cid:11) (cid:41)otes to Consolidated Financial
Statements."
(cid:12)(cid:10)(cid:11)(cid:14) (cid:16)emis (cid:23)(cid:50)(cid:56)e(cid:43)ra(cid:56)io(cid:50) (cid:30)(cid:48)a(cid:50)
In connection (cid:76)ith the acquisition of Bemis Company(cid:11) Inc. ("Bemis")(cid:11) (cid:76)e initiated restructuring activities in the fourth
quarter of 201(cid:24) aimed at integrating and optimi(cid:79)ing the combined organi(cid:79)ation. (cid:50)e have e(cid:77)ceeded the targeted pre(cid:12)ta(cid:77)
synergies of $180 million by appro(cid:77)imately 10(cid:4) driven by procurement(cid:11) supply chain and general and administrative savings
as of (cid:37)une 30(cid:11) 2022.
(cid:47)he 201(cid:24) Bemis Integration (cid:43)lan (cid:76)as completed by (cid:37)une 30(cid:11) 2022(cid:11) (cid:76)ith final pre(cid:12)ta(cid:77) integration cost amounting to
$253 million. (cid:47)he total 201(cid:24) Bemis Integration (cid:43)lan cost includes $213 million of restructuring and related e(cid:77)penses(cid:11) net(cid:11) and
$40 million of general integration e(cid:77)penses. (cid:47)he net cash e(cid:77)penditures for the plan(cid:11) including disposal proceeds(cid:11) are $170
million(cid:11) of (cid:76)hich $40 million relates to general integration e(cid:77)penses. As part of this (cid:43)lan(cid:11) (cid:76)e have incurred $144 million in
employee related e(cid:77)penses(cid:11) $36 million in fi(cid:77)ed asset related e(cid:77)penses(cid:11) $3(cid:24) million in other restructuring and $45 million in
restructuring related e(cid:77)penses(cid:11) partially offset by a gain on disposal of a business of $51 million. In fiscal year 2022(cid:11) the (cid:43)lan
resulted in net cash outflo(cid:76)s of $4(cid:24) million of (cid:76)hich $47 million (cid:76)ere payments related to restructuring and related
e(cid:77)penditures. (cid:47)he remaining cash outflo(cid:76) (cid:76)ill be primarily incurred in fiscal year 2023.
(cid:12)(cid:10)(cid:11)(cid:13) Ri(cid:43)i(cid:40) (cid:30)a(cid:39)(cid:47)a(cid:43)i(cid:50)(cid:43) Res(cid:56)r(cid:57)(cid:39)(cid:56)(cid:57)ri(cid:50)(cid:43) (cid:30)(cid:48)a(cid:50)
On August 21(cid:11) 2018(cid:11) (cid:76)e announced a restructuring plan in Amcor (cid:45)igid (cid:43)ac(cid:64)aging ("2018 (cid:45)igid (cid:43)ac(cid:64)aging
(cid:45)estructuring (cid:43)lan") aimed at reducing structural costs and optimi(cid:79)ing the footprint. (cid:47)he (cid:43)lan included the closures of
manufacturing facilities and headcount reductions to achieve manufacturing footprint optimi(cid:79)ation and productivity
improvements(cid:11) as (cid:76)ell as overhead cost reductions.
(cid:47)he 2018 (cid:45)igid (cid:43)ac(cid:64)aging (cid:45)estructuring (cid:43)lan (cid:76)as completed by (cid:37)une 30(cid:11) 2021 (cid:76)ith total pre(cid:12)ta(cid:77) restructuring costs of
$121 million(cid:11) of (cid:76)hich $78 million resulted in cash e(cid:77)penditures(cid:11) (cid:76)ith the main component being the cost to e(cid:77)it manufacturing
facilities and employee related costs.
For more information about our restructuring plans(cid:11) refer to (cid:41)ote 7(cid:11) "(cid:45)estructuring."
(cid:19)(cid:53)(cid:57)i(cid:56)(cid:61) (cid:27)e(cid:56)(cid:44)o(cid:40) (cid:23)(cid:50)(cid:58)es(cid:56)me(cid:50)(cid:56) (cid:7) (cid:15)(cid:27)(cid:35)(cid:23)(cid:21) (cid:22)o(cid:48)(cid:40)i(cid:50)(cid:43)s (cid:26)imi(cid:56)e(cid:40) (cid:4)(cid:2)(cid:15)(cid:27)(cid:35)(cid:23)(cid:21)(cid:2)(cid:5)
(cid:50)e sold our equity method investment in A(cid:40)(cid:49)I(cid:34) on September 30(cid:11) 2020(cid:11) reali(cid:79)ing a net gain of $15 million(cid:11) (cid:76)hich
(cid:76)as recorded in equity in income(cid:14)(loss) of affiliated companies(cid:11) net of ta(cid:77) in the consolidated statements of income. (cid:43)rior to the
sale and due to impairment indicators being present for the year ended (cid:37)une 30(cid:11) 2020(cid:11) (cid:76)e performed impairment tests by
comparing the carrying value of our investment in A(cid:40)(cid:49)I(cid:34) to the fair value of the investment(cid:11) (cid:76)hich (cid:76)as determined based on
A(cid:40)(cid:49)I(cid:34)(cid:6)s quoted share price. (cid:50)e recorded an impairment charge of $26 million in fiscal year 2020(cid:11) as the fair value of the
investment (cid:76)as belo(cid:76) its carrying value. (cid:45)efer to (cid:41)ote 8(cid:11) "Equity (cid:40)ethod and Other Investments."
(cid:22)i(cid:43)(cid:44)(cid:48)(cid:61) (cid:23)(cid:50)f(cid:48)a(cid:56)io(cid:50)ar(cid:61) (cid:15)(cid:39)(cid:39)o(cid:57)(cid:50)(cid:56)i(cid:50)(cid:43)
(cid:50)e have subsidiaries in Argentina that historically had a functional currency of the Argentine (cid:43)eso. As of (cid:37)une 30(cid:11)
2018(cid:11) the Argentine economy (cid:76)as designated as highly inflationary for accounting purposes. Accordingly(cid:11) beginning (cid:37)uly 1(cid:11)
2018(cid:11) (cid:76)e began reporting the financial results of our Argentine subsidiaries (cid:76)ith a functional currency of the (cid:48).S. dollar. (cid:47)he
transition to highly inflationary accounting resulted in a negative impact on monetary balances of $16 million(cid:11) $1(cid:24) million(cid:11) and
$28 million that (cid:76)as reflected in the consolidated statements of income for the fiscal years ended (cid:37)une 30(cid:11) 2022(cid:11) 2021(cid:11) and
2020(cid:11) respectively.
2(cid:24)
30
Amcor Annual Report 2022
Form 10-K
31
Results of Operations
(cid:33)(cid:43)e (cid:41)ollow(cid:44)ng (cid:44)(cid:53) a d(cid:44)(cid:53)(cid:38)(cid:55)(cid:53)(cid:53)(cid:44)on and anal(cid:59)(cid:53)(cid:44)(cid:53) o(cid:41) (cid:38)(cid:43)ange(cid:53) (cid:44)n t(cid:43)e re(cid:53)(cid:55)lt(cid:53) o(cid:41) o(cid:51)erat(cid:44)on(cid:53) (cid:41)or (cid:41)(cid:44)(cid:53)(cid:38)al (cid:59)ear (cid:11)(cid:9)(cid:11)(cid:11) (cid:38)om(cid:51)ared to (cid:41)(cid:44)(cid:53)(cid:38)al (cid:59)ear
(cid:11)(cid:9)(cid:11)(cid:10)(cid:7) (cid:16) d(cid:44)(cid:53)(cid:38)(cid:55)(cid:53)(cid:53)(cid:44)on and anal(cid:59)(cid:53)(cid:44)(cid:53) regard(cid:44)ng o(cid:55)r re(cid:53)(cid:55)lt(cid:53) o(cid:41) o(cid:51)erat(cid:44)on(cid:53) (cid:41)or (cid:41)(cid:44)(cid:53)(cid:38)al (cid:59)ear (cid:11)(cid:9)(cid:11)(cid:10) (cid:38)om(cid:51)ared to (cid:41)(cid:44)(cid:53)(cid:38)al (cid:59)ear (cid:11)(cid:9)(cid:11)(cid:9) t(cid:43)at are
not (cid:44)n(cid:38)l(cid:55)ded (cid:44)n t(cid:43)(cid:44)(cid:53) (cid:16)nn(cid:55)al (cid:31)e(cid:51)ort on Form (cid:10)(cid:9)-(cid:25) (cid:38)an (cid:37)e (cid:41)o(cid:55)nd (cid:44)n (cid:30)art II(cid:5) Item (cid:14) o(cid:41) o(cid:55)r (cid:16)nn(cid:55)al (cid:31)e(cid:51)ort on Form (cid:10)(cid:9)-(cid:25) (cid:41)or t(cid:43)e
(cid:41)(cid:44)(cid:53)(cid:38)al (cid:59)ear ended (cid:24)(cid:55)ne (cid:12)(cid:9)(cid:5) (cid:11)(cid:9)(cid:11)(cid:10)(cid:5) (cid:41)(cid:44)led w(cid:44)t(cid:43) t(cid:43)e (cid:32)(cid:19)C on (cid:16)(cid:55)g(cid:55)(cid:53)t (cid:11)(cid:13)(cid:5) (cid:11)(cid:9)(cid:11)(cid:10) and (cid:44)n(cid:38)or(cid:51)orated (cid:37)(cid:59) re(cid:41)eren(cid:38)e(cid:7)
(cid:17)o(cid:50)so(cid:48)i(cid:40)a(cid:56)e(cid:40) Res(cid:57)(cid:48)(cid:56)s of (cid:29)(cid:52)era(cid:56)io(cid:50)s
((cid:3) in millions, e(cid:74)cept per share data)
(cid:41)et sales
Operating income
Operating income as a percentage of net sales
(cid:41)et income attributable to Amcor plc
(cid:31)iluted Earnings (cid:43)er Share
2022
2021
$
14(cid:11)544
$
12(cid:11)861
1(cid:11)23(cid:24)
8.5 (cid:4)
1(cid:11)321
10.3 (cid:4)
$
$
805
0.52(cid:24)
$
$
(cid:24)3(cid:24)
0.602
(cid:41)et sales increased by $1(cid:11)683 million(cid:11) or by 13.1(cid:4)(cid:11) in fiscal year 2022(cid:11) compared to fiscal year 2021. E(cid:77)cluding the
impact of disposed and ceased operations of $87 million(cid:11) or (0.7(cid:4))(cid:11) negative currency impacts of $24(cid:24) million(cid:11) or (1.(cid:24)(cid:4))(cid:11) and
pass(cid:12)through of ra(cid:76) material costs of $1(cid:11)530 million(cid:11) or 11.(cid:24)(cid:4)(cid:11) the increase in net sales for the fiscal year 2022 (cid:76)as $4(cid:24)0
million or 3.8(cid:4)(cid:11) driven by marginally favorable volumes of 0.4(cid:4) and favorable price(cid:14)mi(cid:77) of 3.4(cid:4).
(cid:41)et income attributable to Amcor plc decreased by $134 million(cid:11) or by 14.3(cid:4)(cid:11) in fiscal year 2022(cid:11) compared to fiscal
year 2021(cid:11) mainly as a result of increased restructuring(cid:11) impairment(cid:11) and related e(cid:77)penses(cid:11) net of $140 million(cid:11) largely due to
costs related to the (cid:45)ussia(cid:12)(cid:48)(cid:64)raine conflict(cid:11) and higher ta(cid:77) charges of $3(cid:24) million(cid:11) offset by increased gross profit of $88
million.
(cid:31)iluted earnings per share ("(cid:31)iluted E(cid:43)S") decreased by $0.073(cid:11) or by 12.1(cid:4)(cid:11) in fiscal year 2022(cid:11) compared to fiscal
year 2021(cid:11) (cid:76)ith net income attributable to ordinary shareholders decreasing by 14.3(cid:4) and the diluted (cid:76)eighted(cid:12)average number
of shares outstanding decreasing by 2.6(cid:4). (cid:47)he decrease in the diluted (cid:76)eighted(cid:12)average number of shares outstanding (cid:76)as due
to repurchase of shares under announced share buybac(cid:64) programs.
Se(cid:43)me(cid:50)(cid:56) Res(cid:57)(cid:48)(cid:56)s of (cid:29)(cid:52)era(cid:56)io(cid:50)s
Fle(cid:74)ibles Segment
(cid:47)he Fle(cid:77)ibles reportable segment develops and supplies fle(cid:77)ible pac(cid:64)aging globally.
((cid:3) in millions)
(cid:41)et sales including intersegment sales
Ad(cid:63)usted EBI(cid:47) from continuing operations
Ad(cid:63)usted EBI(cid:47) from continuing operations as a percentage of net sales
2022
2021
$
11(cid:11)151
$
10(cid:11)040
1(cid:11)517
13.6 (cid:4)
1(cid:11)427
14.2 (cid:4)
(cid:41)et sales including intersegment sales increased by $1(cid:11)111 million(cid:11) or by 11.1(cid:4)(cid:11) in fiscal year 2022(cid:11) compared to
fiscal year 2021. E(cid:77)cluding the impact of disposed and ceased operations of $87 million(cid:11) or (0.8(cid:4))(cid:11) negative currency impacts
of $248 million(cid:11) or (2.5(cid:4))(cid:11) and pass(cid:12)through of ra(cid:76) material costs of $1(cid:11)0(cid:24)1 million(cid:11) or 10.(cid:24)(cid:4)(cid:11) the increase in net sales
including intersegment sales for fiscal year 2022 (cid:76)as $355 million(cid:11) or 3.5(cid:4)(cid:11) driven by favorable price(cid:14)mi(cid:77).
Ad(cid:63)usted earnings before interest and ta(cid:77) from continuing operations ("Ad(cid:63)usted EBI(cid:47)") increased by $(cid:24)0 million(cid:11) or
by 6.3(cid:4) in fiscal year 2022(cid:11) compared to fiscal year 2021. E(cid:77)cluding the impact of disposed and ceased operations of $4
million(cid:11) or (0.2(cid:4)) and negative currency impacts of $31 million(cid:11) or 2.3(cid:4)(cid:11) the increase in Ad(cid:63)usted EBI(cid:47) for fiscal year 2022
(cid:76)as $125 million(cid:11) or 8.8(cid:4)(cid:11) driven by favorable price(cid:14)mi(cid:77) of 8.0(cid:4)(cid:11) plant cost improvements of 2.4(cid:4) and favorable volumes of
0.8(cid:4)(cid:11) partially offset by unfavorable selling(cid:11) general(cid:11) and administrative ("S(cid:34)(cid:5)A") and other cost impacts of (2.4(cid:4)).
Rigid Pac(cid:61)aging Segment
(cid:47)he (cid:45)igid (cid:43)ac(cid:64)aging reportable segment manufactures rigid pac(cid:64)aging containers and related products.
((cid:3) in millions)
(cid:41)et sales
Ad(cid:63)usted EBI(cid:47) from continuing operations
Ad(cid:63)usted EBI(cid:47) from continuing operations as a percentage of net sales
2022
2021
$
3(cid:11)3(cid:24)3
$
28(cid:24)
8.5 (cid:4)
2(cid:11)823
2(cid:24)(cid:24)
10.6 (cid:4)
(cid:41)et sales increased by $570 million(cid:11) or by 20.2(cid:4)(cid:11) in fiscal year 2022(cid:11) compared to fiscal year 2021. E(cid:77)cluding
positive currency impacts of $1 million(cid:11) and pass(cid:12)through of ra(cid:76) material costs of $43(cid:24) million(cid:11) or 15.6(cid:4)(cid:11) the increase in net
sales including intersegment sales for the fiscal year 2022 (cid:76)as $132 million(cid:11) or 4.7(cid:4)(cid:11) driven by favorable volumes of 2.8(cid:4) and
favorable price(cid:14)mi(cid:77) of 1.(cid:24)(cid:4).
Ad(cid:63)usted EBI(cid:47) decreased by $10 million(cid:11) or by 3.3(cid:4)(cid:11) in fiscal year 2022(cid:11) compared to fiscal year 2021. (cid:50)ith minor
impacts from currency impacts(cid:11) the decrease in Ad(cid:63)usted EBI(cid:47) for fiscal year 2022 (cid:76)as $10 million(cid:11) or 3.5(cid:4)(cid:11) driven by
favorable price(cid:14)mi(cid:77) of 20.5(cid:4)(cid:11) favorable volumes of (cid:24).2(cid:4)(cid:11) unfavorable plant costs of (30.0(cid:4))(cid:11) and unfavorable selling(cid:11) general(cid:11)
and administrative ("S(cid:34)(cid:5)A")(cid:11) and other cost impacts of (3.2(cid:4)).
(cid:17)o(cid:50)so(cid:48)i(cid:40)a(cid:56)e(cid:40) (cid:21)ross (cid:30)rofi(cid:56)
((cid:3) in millions)
(cid:34)ross profit
(cid:34)ross profit as a percentage of net sales
(cid:34)ross profit increased by $88 million(cid:11) or by 3.2(cid:4)(cid:11) in fiscal year 2022(cid:11) compared to fiscal year 2021. (cid:47)he increase (cid:76)as
primarily driven by the increase in net sales of 13.1(cid:4) referred to above. (cid:34)ross profit as a percentage of sales decreased to
1(cid:24).4(cid:4) for the fiscal year 2022(cid:11) primarily due to the impact on the calculation from the pass through of higher ra(cid:76) material costs
(cid:17)o(cid:50)so(cid:48)i(cid:40)a(cid:56)e(cid:40) Se(cid:48)(cid:48)i(cid:50)(cid:43)(cid:6) (cid:21)e(cid:50)era(cid:48)(cid:6) a(cid:50)(cid:40) (cid:15)(cid:40)mi(cid:50)is(cid:56)ra(cid:56)i(cid:58)e (cid:4)(cid:2)S(cid:21)(cid:3)(cid:15)(cid:2)(cid:5) (cid:19)x(cid:52)e(cid:50)ses
during the period.
((cid:3) in millions)
S(cid:34)(cid:5)A e(cid:77)penses
S(cid:34)(cid:5)A e(cid:77)penses as a percentage of net sales
2022
2021
$
2(cid:11)820
$
2(cid:11)732
1(cid:24).4 (cid:4)
21.2 (cid:4)
2022
2021
$
(1(cid:11)284)
$
(1(cid:11)2(cid:24)2)
(8.8) (cid:4)
(10.0) (cid:4)
S(cid:34)(cid:5)A decreased by $8 million(cid:11) or by 0.6(cid:4)(cid:11) in fiscal year 2022(cid:11) compared to fiscal year 2021(cid:11) largely driven by
favorable e(cid:77)change rates.
(cid:17)o(cid:50)so(cid:48)i(cid:40)a(cid:56)e(cid:40) Res(cid:56)r(cid:57)(cid:39)(cid:56)(cid:57)ri(cid:50)(cid:43)(cid:6) (cid:23)m(cid:52)airme(cid:50)(cid:56)(cid:6) a(cid:50)(cid:40) Re(cid:48)a(cid:56)e(cid:40) (cid:19)x(cid:52)e(cid:50)ses(cid:6) (cid:28)e(cid:56)
((cid:3) in millions)
(cid:45)estructuring(cid:11) impairment(cid:11) and related e(cid:77)penses(cid:11) net
(cid:45)estructuring(cid:11) impairment(cid:11) and related e(cid:77)penses(cid:11) net(cid:11) as a percentage of net sales
2022
2021
$
(234)
$
(1.6) (cid:4)
((cid:24)4)
(0.7) (cid:4)
(cid:45)estructuring(cid:11) impairment(cid:11) and related costs increased by $140 million(cid:11) or by 148.(cid:24)(cid:4)(cid:11) in fiscal year 2022(cid:11) compared to
fiscal year 2021. (cid:47)he increase (cid:76)as primarily driven by the non(cid:12)recurrence of a gain on disposal of a non(cid:12)core European hospital
supplies business of $52 million in fiscal year 2021(cid:11) and charges related to the (cid:45)ussia(cid:12)(cid:48)(cid:64)raine conflict in fiscal year 2022(cid:11)
offset by the completion of the (cid:45)igid (cid:43)ac(cid:64)aging (cid:45)estructuring (cid:43)lan in (cid:37)une 2021.
(cid:17)o(cid:50)so(cid:48)i(cid:40)a(cid:56)e(cid:40) (cid:29)(cid:56)(cid:44)er (cid:23)(cid:50)(cid:39)ome(cid:6) (cid:28)e(cid:56)
((cid:3) in millions)
Other income(cid:11) net
Other income(cid:11) net(cid:11) as a percentage of net sales
2022
2021
$
33
$
0.2 (cid:4)
75
0.6 (cid:4)
31
Amcor Annual Report 2022
32
31
Form 10-K
(cid:22)2
Results of Operations
(cid:33)(cid:43)e (cid:41)ollow(cid:44)ng (cid:44)(cid:53) a d(cid:44)(cid:53)(cid:38)(cid:55)(cid:53)(cid:53)(cid:44)on and anal(cid:59)(cid:53)(cid:44)(cid:53) o(cid:41) (cid:38)(cid:43)ange(cid:53) (cid:44)n t(cid:43)e re(cid:53)(cid:55)lt(cid:53) o(cid:41) o(cid:51)erat(cid:44)on(cid:53) (cid:41)or (cid:41)(cid:44)(cid:53)(cid:38)al (cid:59)ear (cid:11)(cid:9)(cid:11)(cid:11) (cid:38)om(cid:51)ared to (cid:41)(cid:44)(cid:53)(cid:38)al (cid:59)ear
(cid:11)(cid:9)(cid:11)(cid:10)(cid:7) (cid:16) d(cid:44)(cid:53)(cid:38)(cid:55)(cid:53)(cid:53)(cid:44)on and anal(cid:59)(cid:53)(cid:44)(cid:53) regard(cid:44)ng o(cid:55)r re(cid:53)(cid:55)lt(cid:53) o(cid:41) o(cid:51)erat(cid:44)on(cid:53) (cid:41)or (cid:41)(cid:44)(cid:53)(cid:38)al (cid:59)ear (cid:11)(cid:9)(cid:11)(cid:10) (cid:38)om(cid:51)ared to (cid:41)(cid:44)(cid:53)(cid:38)al (cid:59)ear (cid:11)(cid:9)(cid:11)(cid:9) t(cid:43)at are
not (cid:44)n(cid:38)l(cid:55)ded (cid:44)n t(cid:43)(cid:44)(cid:53) (cid:16)nn(cid:55)al (cid:31)e(cid:51)ort on Form (cid:10)(cid:9)-(cid:25) (cid:38)an (cid:37)e (cid:41)o(cid:55)nd (cid:44)n (cid:30)art II(cid:5) Item (cid:14) o(cid:41) o(cid:55)r (cid:16)nn(cid:55)al (cid:31)e(cid:51)ort on Form (cid:10)(cid:9)-(cid:25) (cid:41)or t(cid:43)e
(cid:41)(cid:44)(cid:53)(cid:38)al (cid:59)ear ended (cid:24)(cid:55)ne (cid:12)(cid:9)(cid:5) (cid:11)(cid:9)(cid:11)(cid:10)(cid:5) (cid:41)(cid:44)led w(cid:44)t(cid:43) t(cid:43)e (cid:32)(cid:19)C on (cid:16)(cid:55)g(cid:55)(cid:53)t (cid:11)(cid:13)(cid:5) (cid:11)(cid:9)(cid:11)(cid:10) and (cid:44)n(cid:38)or(cid:51)orated (cid:37)(cid:59) re(cid:41)eren(cid:38)e(cid:7)
(cid:17)o(cid:50)so(cid:48)i(cid:40)a(cid:56)e(cid:40) Res(cid:57)(cid:48)(cid:56)s of (cid:29)(cid:52)era(cid:56)io(cid:50)s
((cid:3) in millions, e(cid:74)cept per share data)
(cid:41)et sales
Operating income
Operating income as a percentage of net sales
(cid:41)et income attributable to Amcor plc
(cid:31)iluted Earnings (cid:43)er Share
2022
2021
$
14(cid:11)544
$
12(cid:11)861
1(cid:11)23(cid:24)
8.5 (cid:4)
1(cid:11)321
10.3 (cid:4)
$
$
805
0.52(cid:24)
$
$
(cid:24)3(cid:24)
0.602
(cid:41)et sales increased by $1(cid:11)683 million(cid:11) or by 13.1(cid:4)(cid:11) in fiscal year 2022(cid:11) compared to fiscal year 2021. E(cid:77)cluding the
impact of disposed and ceased operations of $87 million(cid:11) or (0.7(cid:4))(cid:11) negative currency impacts of $24(cid:24) million(cid:11) or (1.(cid:24)(cid:4))(cid:11) and
pass(cid:12)through of ra(cid:76) material costs of $1(cid:11)530 million(cid:11) or 11.(cid:24)(cid:4)(cid:11) the increase in net sales for the fiscal year 2022 (cid:76)as $4(cid:24)0
million or 3.8(cid:4)(cid:11) driven by marginally favorable volumes of 0.4(cid:4) and favorable price(cid:14)mi(cid:77) of 3.4(cid:4).
(cid:41)et income attributable to Amcor plc decreased by $134 million(cid:11) or by 14.3(cid:4)(cid:11) in fiscal year 2022(cid:11) compared to fiscal
year 2021(cid:11) mainly as a result of increased restructuring(cid:11) impairment(cid:11) and related e(cid:77)penses(cid:11) net of $140 million(cid:11) largely due to
costs related to the (cid:45)ussia(cid:12)(cid:48)(cid:64)raine conflict(cid:11) and higher ta(cid:77) charges of $3(cid:24) million(cid:11) offset by increased gross profit of $88
million.
(cid:31)iluted earnings per share ("(cid:31)iluted E(cid:43)S") decreased by $0.073(cid:11) or by 12.1(cid:4)(cid:11) in fiscal year 2022(cid:11) compared to fiscal
year 2021(cid:11) (cid:76)ith net income attributable to ordinary shareholders decreasing by 14.3(cid:4) and the diluted (cid:76)eighted(cid:12)average number
of shares outstanding decreasing by 2.6(cid:4). (cid:47)he decrease in the diluted (cid:76)eighted(cid:12)average number of shares outstanding (cid:76)as due
to repurchase of shares under announced share buybac(cid:64) programs.
Se(cid:43)me(cid:50)(cid:56) Res(cid:57)(cid:48)(cid:56)s of (cid:29)(cid:52)era(cid:56)io(cid:50)s
Fle(cid:74)ibles Segment
(cid:47)he Fle(cid:77)ibles reportable segment develops and supplies fle(cid:77)ible pac(cid:64)aging globally.
((cid:3) in millions)
(cid:41)et sales including intersegment sales
Ad(cid:63)usted EBI(cid:47) from continuing operations
Ad(cid:63)usted EBI(cid:47) from continuing operations as a percentage of net sales
2022
2021
$
11(cid:11)151
$
10(cid:11)040
1(cid:11)517
13.6 (cid:4)
1(cid:11)427
14.2 (cid:4)
(cid:41)et sales including intersegment sales increased by $1(cid:11)111 million(cid:11) or by 11.1(cid:4)(cid:11) in fiscal year 2022(cid:11) compared to
fiscal year 2021. E(cid:77)cluding the impact of disposed and ceased operations of $87 million(cid:11) or (0.8(cid:4))(cid:11) negative currency impacts
of $248 million(cid:11) or (2.5(cid:4))(cid:11) and pass(cid:12)through of ra(cid:76) material costs of $1(cid:11)0(cid:24)1 million(cid:11) or 10.(cid:24)(cid:4)(cid:11) the increase in net sales
including intersegment sales for fiscal year 2022 (cid:76)as $355 million(cid:11) or 3.5(cid:4)(cid:11) driven by favorable price(cid:14)mi(cid:77).
Ad(cid:63)usted earnings before interest and ta(cid:77) from continuing operations ("Ad(cid:63)usted EBI(cid:47)") increased by $(cid:24)0 million(cid:11) or
by 6.3(cid:4) in fiscal year 2022(cid:11) compared to fiscal year 2021. E(cid:77)cluding the impact of disposed and ceased operations of $4
million(cid:11) or (0.2(cid:4)) and negative currency impacts of $31 million(cid:11) or 2.3(cid:4)(cid:11) the increase in Ad(cid:63)usted EBI(cid:47) for fiscal year 2022
(cid:76)as $125 million(cid:11) or 8.8(cid:4)(cid:11) driven by favorable price(cid:14)mi(cid:77) of 8.0(cid:4)(cid:11) plant cost improvements of 2.4(cid:4) and favorable volumes of
0.8(cid:4)(cid:11) partially offset by unfavorable selling(cid:11) general(cid:11) and administrative ("S(cid:34)(cid:5)A") and other cost impacts of (2.4(cid:4)).
Rigid Pac(cid:61)aging Segment
(cid:47)he (cid:45)igid (cid:43)ac(cid:64)aging reportable segment manufactures rigid pac(cid:64)aging containers and related products.
((cid:3) in millions)
(cid:41)et sales
Ad(cid:63)usted EBI(cid:47) from continuing operations
Ad(cid:63)usted EBI(cid:47) from continuing operations as a percentage of net sales
2022
2021
$
3(cid:11)3(cid:24)3
$
28(cid:24)
8.5 (cid:4)
2(cid:11)823
2(cid:24)(cid:24)
10.6 (cid:4)
(cid:41)et sales increased by $570 million(cid:11) or by 20.2(cid:4)(cid:11) in fiscal year 2022(cid:11) compared to fiscal year 2021. E(cid:77)cluding
positive currency impacts of $1 million(cid:11) and pass(cid:12)through of ra(cid:76) material costs of $43(cid:24) million(cid:11) or 15.6(cid:4)(cid:11) the increase in net
sales including intersegment sales for the fiscal year 2022 (cid:76)as $132 million(cid:11) or 4.7(cid:4)(cid:11) driven by favorable volumes of 2.8(cid:4) and
favorable price(cid:14)mi(cid:77) of 1.(cid:24)(cid:4).
Ad(cid:63)usted EBI(cid:47) decreased by $10 million(cid:11) or by 3.3(cid:4)(cid:11) in fiscal year 2022(cid:11) compared to fiscal year 2021. (cid:50)ith minor
impacts from currency impacts(cid:11) the decrease in Ad(cid:63)usted EBI(cid:47) for fiscal year 2022 (cid:76)as $10 million(cid:11) or 3.5(cid:4)(cid:11) driven by
favorable price(cid:14)mi(cid:77) of 20.5(cid:4)(cid:11) favorable volumes of (cid:24).2(cid:4)(cid:11) unfavorable plant costs of (30.0(cid:4))(cid:11) and unfavorable selling(cid:11) general(cid:11)
and administrative ("S(cid:34)(cid:5)A")(cid:11) and other cost impacts of (3.2(cid:4)).
(cid:17)o(cid:50)so(cid:48)i(cid:40)a(cid:56)e(cid:40) (cid:21)ross (cid:30)rofi(cid:56)
((cid:3) in millions)
(cid:34)ross profit
(cid:34)ross profit as a percentage of net sales
2022
2021
$
2(cid:11)820
$
2(cid:11)732
1(cid:24).4 (cid:4)
21.2 (cid:4)
(cid:34)ross profit increased by $88 million(cid:11) or by 3.2(cid:4)(cid:11) in fiscal year 2022(cid:11) compared to fiscal year 2021. (cid:47)he increase (cid:76)as
primarily driven by the increase in net sales of 13.1(cid:4) referred to above. (cid:34)ross profit as a percentage of sales decreased to
1(cid:24).4(cid:4) for the fiscal year 2022(cid:11) primarily due to the impact on the calculation from the pass through of higher ra(cid:76) material costs
during the period.
(cid:17)o(cid:50)so(cid:48)i(cid:40)a(cid:56)e(cid:40) Se(cid:48)(cid:48)i(cid:50)(cid:43)(cid:6) (cid:21)e(cid:50)era(cid:48)(cid:6) a(cid:50)(cid:40) (cid:15)(cid:40)mi(cid:50)is(cid:56)ra(cid:56)i(cid:58)e (cid:4)(cid:2)S(cid:21)(cid:3)(cid:15)(cid:2)(cid:5) (cid:19)x(cid:52)e(cid:50)ses
((cid:3) in millions)
S(cid:34)(cid:5)A e(cid:77)penses
S(cid:34)(cid:5)A e(cid:77)penses as a percentage of net sales
2022
2021
$
(1(cid:11)284)
$
(1(cid:11)2(cid:24)2)
(8.8) (cid:4)
(10.0) (cid:4)
S(cid:34)(cid:5)A decreased by $8 million(cid:11) or by 0.6(cid:4)(cid:11) in fiscal year 2022(cid:11) compared to fiscal year 2021(cid:11) largely driven by
favorable e(cid:77)change rates.
(cid:17)o(cid:50)so(cid:48)i(cid:40)a(cid:56)e(cid:40) Res(cid:56)r(cid:57)(cid:39)(cid:56)(cid:57)ri(cid:50)(cid:43)(cid:6) (cid:23)m(cid:52)airme(cid:50)(cid:56)(cid:6) a(cid:50)(cid:40) Re(cid:48)a(cid:56)e(cid:40) (cid:19)x(cid:52)e(cid:50)ses(cid:6) (cid:28)e(cid:56)
((cid:3) in millions)
(cid:45)estructuring(cid:11) impairment(cid:11) and related e(cid:77)penses(cid:11) net
(cid:45)estructuring(cid:11) impairment(cid:11) and related e(cid:77)penses(cid:11) net(cid:11) as a percentage of net sales
2022
2021
$
(234)
$
(1.6) (cid:4)
((cid:24)4)
(0.7) (cid:4)
(cid:45)estructuring(cid:11) impairment(cid:11) and related costs increased by $140 million(cid:11) or by 148.(cid:24)(cid:4)(cid:11) in fiscal year 2022(cid:11) compared to
fiscal year 2021. (cid:47)he increase (cid:76)as primarily driven by the non(cid:12)recurrence of a gain on disposal of a non(cid:12)core European hospital
supplies business of $52 million in fiscal year 2021(cid:11) and charges related to the (cid:45)ussia(cid:12)(cid:48)(cid:64)raine conflict in fiscal year 2022(cid:11)
offset by the completion of the (cid:45)igid (cid:43)ac(cid:64)aging (cid:45)estructuring (cid:43)lan in (cid:37)une 2021.
(cid:17)o(cid:50)so(cid:48)i(cid:40)a(cid:56)e(cid:40) (cid:29)(cid:56)(cid:44)er (cid:23)(cid:50)(cid:39)ome(cid:6) (cid:28)e(cid:56)
((cid:3) in millions)
Other income(cid:11) net
Other income(cid:11) net(cid:11) as a percentage of net sales
2022
2021
$
33
$
0.2 (cid:4)
75
0.6 (cid:4)
31
32
Amcor Annual Report 2022
Other income(cid:11) net decreased by $42 million(cid:11) or by 56.0(cid:4) (cid:11) in fiscal year 2022(cid:11) compared to fiscal year 2021(cid:11) mainly
due to the non(cid:12)reoccurrence of credits related to a favorable Bra(cid:79)il Supreme Court ruling on Bra(cid:79)il indirect ta(cid:77) in fiscal year
2021.
Presentation of (cid:38)on-(cid:31)AAP Information
Form 10-K
33
(cid:17)o(cid:50)so(cid:48)i(cid:40)a(cid:56)e(cid:40) (cid:23)(cid:50)(cid:56)eres(cid:56) (cid:23)(cid:50)(cid:39)ome
((cid:3) in millions)
Interest income
Interest income as a percentage of net sales
2022
2021
$
24
$
0.2 (cid:4)
14
0.1 (cid:4)
Interest income increased by $10 million(cid:11) or by 71.4(cid:4)(cid:11) in fiscal year 2022(cid:11) compared to fiscal year 2021(cid:11) mainly
driven by yield improvements on Euro denominated commercial paper and improved rates on cash balances held by the (cid:34)roup.
(cid:17)o(cid:50)so(cid:48)i(cid:40)a(cid:56)e(cid:40) (cid:23)(cid:50)(cid:56)eres(cid:56) (cid:19)x(cid:52)e(cid:50)se
((cid:3) in millions)
Interest e(cid:77)pense
Interest e(cid:77)pense as a percentage of net sales
2022
2021
$
(15(cid:24))
$
(1.1) (cid:4)
(153)
(1.2) (cid:4)
Interest e(cid:77)pense increased by $6 million(cid:11) or by 3.(cid:24)(cid:4)(cid:11) in fiscal year 2022(cid:11) compared to fiscal year 2021 due to higher
short(cid:12)term variable rates.
(cid:17)o(cid:50)so(cid:48)i(cid:40)a(cid:56)e(cid:40) (cid:23)(cid:50)(cid:39)ome Tax (cid:19)x(cid:52)e(cid:50)se
((cid:3) in millions)
Income ta(cid:77) e(cid:77)pense
Effective ta(cid:77) rate
2022
2021
$
(300)
$
26.(cid:24) (cid:4)
(261)
21.(cid:24) (cid:4)
Income ta(cid:77) e(cid:77)pense increased by $3(cid:24) million(cid:11) or by 14.(cid:24)(cid:4)(cid:11) in fiscal year 2022(cid:11) compared to fiscal year 2021. (cid:47)he
increase (cid:76)as predominantly attributable to an increase in ta(cid:77) provisions for uncertain ta(cid:77) positions.
(cid:47)his Annual (cid:45)eport on Form 10(cid:12)(cid:38) refers to non(cid:12)(cid:34)AA(cid:43) financial measures(cid:25) ad(cid:63)usted earnings before interest and ta(cid:77)es
("Ad(cid:63)usted EBI(cid:47)")(cid:11) ad(cid:63)usted net income(cid:11) and net debt. Such measures have not been prepared in accordance (cid:76)ith accounting
principles generally accepted in the (cid:48)nited States of America ("(cid:48).S. (cid:34)AA(cid:43)"). (cid:47)hese non(cid:12)(cid:34)AA(cid:43) financial measures ad(cid:63)ust for
factors that are unusual or unpredictable. (cid:47)hese measures e(cid:77)clude the impact of significant ta(cid:77) reforms(cid:11) certain amounts related
to the effect of changes in currency e(cid:77)change rates(cid:11) acquisitions(cid:11) and restructuring(cid:11) including employee(cid:12)related costs(cid:11) equipment
relocation costs(cid:11) accelerated depreciation(cid:11) and the (cid:76)rite(cid:12)do(cid:76)n of equipment. (cid:47)hese measures also e(cid:77)clude gains or losses on
sales of significant property and divestitures(cid:11) significant property and other impairments(cid:11) net of insurance recovery(cid:11) certain
litigation matters(cid:11) significant pension settlements(cid:11) impairments in good(cid:76)ill and equity method investments(cid:11) and certain
acquisition(cid:12)related e(cid:77)penses(cid:11) including transaction e(cid:77)penses(cid:11) due diligence e(cid:77)penses(cid:11) professional and legal fees(cid:11) purchase
accounting ad(cid:63)ustments for inventory(cid:11) order bac(cid:64)log(cid:11) intangible amorti(cid:79)ation(cid:11) changes in the fair value of deferred acquisition
payments(cid:11) and impacts related to the (cid:45)ussia(cid:12)(cid:48)(cid:64)raine conflict.
(cid:47)his ad(cid:63)usted information should not be construed as an alternative to results determined in accordance (cid:76)ith (cid:48).S.
(cid:34)AA(cid:43). (cid:50)e use the non(cid:12)(cid:34)AA(cid:43) measures to evaluate operating performance and believe that these non(cid:12)(cid:34)AA(cid:43) measures are
useful to enable investors and other e(cid:77)ternal parties to perform comparisons of our current and historical performance.
A reconciliation of reported net income attributable to Amcor plc to Ad(cid:63)usted EBI(cid:47) from continuing operations and
ad(cid:63)usted net income from continuing operations for fiscal years 2022(cid:11) 2021(cid:11) and 2020 is as follo(cid:76)s(cid:25)
(cid:41)et income attributable to Amcor plc(cid:11) as reported
$
805 $
(cid:24)3(cid:24) $
612
((cid:3) in millions)
Add(cid:25) (cid:41)et income attributable to non(cid:12)controlling interests
Add(cid:25) (Income)(cid:14)loss from discontinued operations(cid:11) net of ta(cid:77)
Income from continuing operations
Add(cid:25) Income ta(cid:77) e(cid:77)pense
Add(cid:25) Interest e(cid:77)pense
Less(cid:25) Interest income
EBI(cid:47) from continuing operations
Add(cid:25) (cid:40)aterial restructuring programs (1)
Add(cid:25) Impairments in equity method investments (2)
Add(cid:25) (cid:40)aterial acquisition costs and other (3)
Add(cid:25) Impact of hyperinflation (5)
Add(cid:25) (cid:43)ension settlements (6)
Add(cid:14)(Less)(cid:25) (cid:41)et (gain)(cid:14)loss on disposals (7)
Add(cid:25) (cid:43)roperty and other losses(cid:11) net (8)
Add(cid:25) (cid:45)ussia(cid:12)(cid:48)(cid:64)raine conflict impacts ((cid:24))
Ad(cid:60)usted EBI(cid:44) from continuing operations
Less(cid:25) Income ta(cid:77) e(cid:77)pense
Less(cid:25) Ad(cid:63)ustments to income ta(cid:77) e(cid:77)pense (10)
Less(cid:25) Interest e(cid:77)pense
Add(cid:25) Interest income
Add(cid:25) Amorti(cid:79)ation of acquired intangible assets from business combinations (4)
Years ended June 30,
2022
2021
2020
(24)
(14)
1(cid:11)250
1(cid:11)351
10
(cid:85)
815
300
15(cid:24)
163
37
(cid:85)
4
16
8
10
13
200
1,(cid:21)01
(300)
(32)
(15(cid:24))
24
(cid:85)
12
(cid:85)
(cid:24)51
261
153
88
(cid:85)
7
165
1(cid:24)
(cid:85)
((cid:24))
(cid:85)
(cid:77)
(261)
(51)
(153)
14
(cid:85)
4
8
624
187
207
(22)
(cid:24)(cid:24)6
106
26
145
1(cid:24)1
28
5
(cid:77)
(cid:85)
(cid:77)
(187)
(8(cid:24))
(207)
22
(4)
(4)
1,(cid:20)21
1,(cid:18)(cid:23)(cid:21)
Less(cid:25) (cid:40)aterial restructuring programs attributable to non(cid:12)controlling interests
Less(cid:25) (cid:41)et income attributable to non(cid:12)controlling interests
(10)
(12)
Ad(cid:60)usted net income from continuing operations
(cid:3)
1,22(cid:18) (cid:3)
1,1(cid:19)(cid:22) (cid:3)
1,02(cid:22)
(1) (cid:40)aterial restructuring programs includes restructuring and related e(cid:77)penses for the 201(cid:24) Bemis Integration (cid:43)lan for fiscal year 2022
and 2018 (cid:45)igid (cid:43)ac(cid:64)aging (cid:45)estructuring (cid:43)lan and the 201(cid:24) Bemis Integration (cid:43)lan for fiscal years 2021 and 2020. (cid:45)efer to (cid:41)ote 7(cid:11)
"(cid:45)estructuring(cid:11)" for more information about our restructuring activities.
33
Amcor Annual Report 2022
34
Other income(cid:11) net decreased by $42 million(cid:11) or by 56.0(cid:4) (cid:11) in fiscal year 2022(cid:11) compared to fiscal year 2021(cid:11) mainly
due to the non(cid:12)reoccurrence of credits related to a favorable Bra(cid:79)il Supreme Court ruling on Bra(cid:79)il indirect ta(cid:77) in fiscal year
Presentation of (cid:38)on-(cid:31)AAP Information
33
Form 10-K
34
(cid:47)his Annual (cid:45)eport on Form 10(cid:12)(cid:38) refers to non(cid:12)(cid:34)AA(cid:43) financial measures(cid:25) ad(cid:63)usted earnings before interest and ta(cid:77)es
("Ad(cid:63)usted EBI(cid:47)")(cid:11) ad(cid:63)usted net income(cid:11) and net debt. Such measures have not been prepared in accordance (cid:76)ith accounting
principles generally accepted in the (cid:48)nited States of America ("(cid:48).S. (cid:34)AA(cid:43)"). (cid:47)hese non(cid:12)(cid:34)AA(cid:43) financial measures ad(cid:63)ust for
factors that are unusual or unpredictable. (cid:47)hese measures e(cid:77)clude the impact of significant ta(cid:77) reforms(cid:11) certain amounts related
to the effect of changes in currency e(cid:77)change rates(cid:11) acquisitions(cid:11) and restructuring(cid:11) including employee(cid:12)related costs(cid:11) equipment
relocation costs(cid:11) accelerated depreciation(cid:11) and the (cid:76)rite(cid:12)do(cid:76)n of equipment. (cid:47)hese measures also e(cid:77)clude gains or losses on
sales of significant property and divestitures(cid:11) significant property and other impairments(cid:11) net of insurance recovery(cid:11) certain
litigation matters(cid:11) significant pension settlements(cid:11) impairments in good(cid:76)ill and equity method investments(cid:11) and certain
acquisition(cid:12)related e(cid:77)penses(cid:11) including transaction e(cid:77)penses(cid:11) due diligence e(cid:77)penses(cid:11) professional and legal fees(cid:11) purchase
accounting ad(cid:63)ustments for inventory(cid:11) order bac(cid:64)log(cid:11) intangible amorti(cid:79)ation(cid:11) changes in the fair value of deferred acquisition
payments(cid:11) and impacts related to the (cid:45)ussia(cid:12)(cid:48)(cid:64)raine conflict.
(cid:47)his ad(cid:63)usted information should not be construed as an alternative to results determined in accordance (cid:76)ith (cid:48).S.
(cid:34)AA(cid:43). (cid:50)e use the non(cid:12)(cid:34)AA(cid:43) measures to evaluate operating performance and believe that these non(cid:12)(cid:34)AA(cid:43) measures are
useful to enable investors and other e(cid:77)ternal parties to perform comparisons of our current and historical performance.
A reconciliation of reported net income attributable to Amcor plc to Ad(cid:63)usted EBI(cid:47) from continuing operations and
ad(cid:63)usted net income from continuing operations for fiscal years 2022(cid:11) 2021(cid:11) and 2020 is as follo(cid:76)s(cid:25)
((cid:3) in millions)
Years ended June 30,
2022
2021
2020
(cid:41)et income attributable to Amcor plc(cid:11) as reported
$
805 $
(cid:24)3(cid:24) $
612
2021.
(cid:17)o(cid:50)so(cid:48)i(cid:40)a(cid:56)e(cid:40) (cid:23)(cid:50)(cid:56)eres(cid:56) (cid:23)(cid:50)(cid:39)ome
((cid:3) in millions)
Interest income
Interest income as a percentage of net sales
(cid:17)o(cid:50)so(cid:48)i(cid:40)a(cid:56)e(cid:40) (cid:23)(cid:50)(cid:56)eres(cid:56) (cid:19)x(cid:52)e(cid:50)se
((cid:3) in millions)
Interest e(cid:77)pense
Interest e(cid:77)pense as a percentage of net sales
short(cid:12)term variable rates.
(cid:17)o(cid:50)so(cid:48)i(cid:40)a(cid:56)e(cid:40) (cid:23)(cid:50)(cid:39)ome Tax (cid:19)x(cid:52)e(cid:50)se
((cid:3) in millions)
Income ta(cid:77) e(cid:77)pense
Effective ta(cid:77) rate
Interest income increased by $10 million(cid:11) or by 71.4(cid:4)(cid:11) in fiscal year 2022(cid:11) compared to fiscal year 2021(cid:11) mainly
driven by yield improvements on Euro denominated commercial paper and improved rates on cash balances held by the (cid:34)roup.
Interest e(cid:77)pense increased by $6 million(cid:11) or by 3.(cid:24)(cid:4)(cid:11) in fiscal year 2022(cid:11) compared to fiscal year 2021 due to higher
2022
2021
$
24
$
0.2 (cid:4)
14
0.1 (cid:4)
2022
2021
$
(15(cid:24))
$
(1.1) (cid:4)
(153)
(1.2) (cid:4)
2022
2021
$
(300)
$
26.(cid:24) (cid:4)
(261)
21.(cid:24) (cid:4)
Income ta(cid:77) e(cid:77)pense increased by $3(cid:24) million(cid:11) or by 14.(cid:24)(cid:4)(cid:11) in fiscal year 2022(cid:11) compared to fiscal year 2021. (cid:47)he
increase (cid:76)as predominantly attributable to an increase in ta(cid:77) provisions for uncertain ta(cid:77) positions.
Add(cid:25) (cid:41)et income attributable to non(cid:12)controlling interests
Add(cid:25) (Income)(cid:14)loss from discontinued operations(cid:11) net of ta(cid:77)
Income from continuing operations
Add(cid:25) Income ta(cid:77) e(cid:77)pense
Add(cid:25) Interest e(cid:77)pense
Less(cid:25) Interest income
EBI(cid:47) from continuing operations
Add(cid:25) (cid:40)aterial restructuring programs (1)
Add(cid:25) Impairments in equity method investments (2)
Add(cid:25) (cid:40)aterial acquisition costs and other (3)
Add(cid:25) Amorti(cid:79)ation of acquired intangible assets from business combinations (4)
Add(cid:25) Impact of hyperinflation (5)
Add(cid:25) (cid:43)ension settlements (6)
Add(cid:14)(Less)(cid:25) (cid:41)et (gain)(cid:14)loss on disposals (7)
Add(cid:25) (cid:43)roperty and other losses(cid:11) net (8)
Add(cid:25) (cid:45)ussia(cid:12)(cid:48)(cid:64)raine conflict impacts ((cid:24))
Ad(cid:60)usted EBI(cid:44) from continuing operations
Less(cid:25) Income ta(cid:77) e(cid:77)pense
Less(cid:25) Ad(cid:63)ustments to income ta(cid:77) e(cid:77)pense (10)
Less(cid:25) Interest e(cid:77)pense
Add(cid:25) Interest income
Less(cid:25) (cid:40)aterial restructuring programs attributable to non(cid:12)controlling interests
10
(cid:85)
815
300
15(cid:24)
12
(cid:85)
(cid:24)51
261
153
(24)
(14)
1(cid:11)250
1(cid:11)351
37
(cid:85)
4
163
16
8
10
13
200
1,(cid:21)01
(300)
(32)
(15(cid:24))
24
(cid:85)
88
(cid:85)
7
165
1(cid:24)
(cid:85)
((cid:24))
(cid:85)
(cid:77)
(261)
(51)
(153)
14
(cid:85)
4
8
624
187
207
(22)
(cid:24)(cid:24)6
106
26
145
1(cid:24)1
28
5
(cid:77)
(cid:85)
(cid:77)
(187)
(8(cid:24))
(207)
22
(4)
(4)
1,(cid:20)21
1,(cid:18)(cid:23)(cid:21)
Less(cid:25) (cid:41)et income attributable to non(cid:12)controlling interests
(10)
(12)
Ad(cid:60)usted net income from continuing operations
(cid:3)
1,22(cid:18) (cid:3)
1,1(cid:19)(cid:22) (cid:3)
1,02(cid:22)
(1) (cid:40)aterial restructuring programs includes restructuring and related e(cid:77)penses for the 201(cid:24) Bemis Integration (cid:43)lan for fiscal year 2022
and 2018 (cid:45)igid (cid:43)ac(cid:64)aging (cid:45)estructuring (cid:43)lan and the 201(cid:24) Bemis Integration (cid:43)lan for fiscal years 2021 and 2020. (cid:45)efer to (cid:41)ote 7(cid:11)
"(cid:45)estructuring(cid:11)" for more information about our restructuring activities.
33
34
Amcor Annual Report 2022
Form 10-K
35
(2)
(3)
Impairments in equity method investments include the impairment charges related to other(cid:12)than(cid:12)temporary impairments related to
the investment in A(cid:40)(cid:49)I(cid:34). (cid:31)uring the fiscal year 2021(cid:11) (cid:76)e sold our interest in A(cid:40)(cid:49)I(cid:34). (cid:45)efer to (cid:41)ote 8(cid:11) "Equity (cid:40)ethod and Other
Investments(cid:11)" for more information about our equity method investments.
Includes costs associated (cid:76)ith the Bemis transaction. Fiscal year 2021 includes a $1(cid:24) million benefit related to Bra(cid:79)il indirect ta(cid:77)es
resulting from a (cid:40)ay 2021 Bra(cid:79)il Supreme Court decision. (cid:31)uring fiscal year 2020(cid:11) material acquisition costs and other includes
$58 million amorti(cid:79)ation of Bemis acquisition related inventory fair value step(cid:12)up and $88 million of Bemis transaction related
costs and integration costs not qualifying as e(cid:77)it costs(cid:11) including certain advisory(cid:11) legal(cid:11) audit(cid:11) and audit related fees.
(4) Amorti(cid:79)ation of acquired intangible assets from business combinations includes amorti(cid:79)ation e(cid:77)penses related to all acquired
intangible assets from past acquisitions(cid:11) including $26 million of sales bac(cid:64)log amorti(cid:79)ation for the fiscal year 2020 from the Bemis
acquisition.
Impact of hyperinflation includes the adverse impact of highly inflationary accounting for subsidiaries in Argentina (cid:76)here the
functional currency (cid:76)as the Argentine (cid:43)eso.
(5)
(6) (cid:43)ension settlements in fiscal year 2022 relate to the purchases of group annuity contracts and transfer of pension plan assets and
related benefit obligations. (cid:45)efer to (cid:41)ote 13(cid:11) "(cid:43)ension and Other (cid:43)ost(cid:12)(cid:45)etirement (cid:43)lans(cid:11)" for more information. For fiscal year
2020(cid:11) impact of pension settlements includes the amount of actuarial losses recogni(cid:79)ed in the consolidated statements of income
related to the settlement of certain defined benefit plans(cid:11) not including related ta(cid:77) effects.
(7) (cid:41)et (gain)(cid:14)loss on disposals includes an e(cid:77)pense of $10 million from the disposal of non(cid:12)core assets for fiscal year 2022. (cid:45)efer to
(cid:41)ote 11(cid:11) "Fair (cid:49)alue (cid:40)easurements(cid:11)" for more information. Fiscal year 2021 includes the gain reali(cid:79)ed upon the disposal of
A(cid:40)(cid:49)I(cid:34) and the loss upon disposal of other non(cid:12)core businesses not part of material restructuring programs. (cid:45)efer to (cid:41)ote 8(cid:11)
"Equity (cid:40)ethod and Other Investments(cid:11)" for further information on the disposal of A(cid:40)(cid:49)I(cid:34) and (cid:41)ote 5(cid:11) "(cid:31)ivestitures(cid:11)" for more
information about our other disposals.
(8) (cid:43)roperty and other losses(cid:11) net includes property and related business losses primarily associated (cid:76)ith the destruction of our (cid:31)urban(cid:11)
South Africa facility during general civil unrest in (cid:37)uly 2021(cid:11) net of insurance recovery.
((cid:24)) (cid:45)ussia(cid:12)(cid:48)(cid:64)raine conflict impacts include $138 million of impairment charges(cid:11) $57 million of restructuring and related e(cid:77)penses(cid:11) and
$5 million of other e(cid:77)penses for fiscal year 2022. (cid:45)efer to (cid:41)ote 4(cid:11)"(cid:45)estructuring(cid:11) Impairment(cid:11) and (cid:45)elated E(cid:77)penses(cid:11) (cid:41)et(cid:11)" and
(cid:41)ote 7(cid:11) "(cid:45)estructuring(cid:11)" for further information.
(10) (cid:41)et ta(cid:77) impact on items (1) through ((cid:24)) above.
Re(cid:39)o(cid:50)(cid:39)i(cid:48)ia(cid:56)io(cid:50) of (cid:28)e(cid:56) (cid:18)e(cid:38)(cid:56)
A reconciliation of total debt to net debt at (cid:37)une 30(cid:11) 2022 and 2021 is as follo(cid:76)s(cid:25)
((cid:3) in millions)
Current portion of long(cid:12)term debt
Short(cid:12)term debt
Long(cid:12)term debt(cid:11) less current portion
(cid:47)otal debt
Less cash and cash equivalents
(cid:38)et debt
June 30, 2022
June 30, 2021
$
(cid:3)
14 $
136
6(cid:11)340
6(cid:11)4(cid:24)0
775
(cid:19),(cid:21)1(cid:19) (cid:3)
5
(cid:24)8
6(cid:11)186
6(cid:11)28(cid:24)
850
(cid:19),(cid:18)3(cid:23)
Supplemental (cid:31)uarantor Information
Amcor plc(cid:11) along (cid:76)ith certain (cid:76)holly o(cid:76)ned subsidiary guarantors(cid:11) guarantee the follo(cid:76)ing senior notes issued by the
(cid:76)holly o(cid:76)ned subsidiaries(cid:11) Amcor Fle(cid:77)ibles (cid:41)orth America(cid:11) Inc. and Amcor (cid:48)(cid:38) Finance plc.
(cid:82)
(cid:82)
(cid:82)
(cid:82)
(cid:82)
(cid:82)
(cid:82)
4.000(cid:4) (cid:34)uaranteed Senior (cid:41)otes due 2025 of Amcor Fle(cid:77)ibles (cid:41)orth America(cid:11) Inc.
3.100(cid:4) (cid:34)uaranteed Senior (cid:41)otes due 2026 of Amcor Fle(cid:77)ibles (cid:41)orth America(cid:11) Inc.
3.625(cid:4) (cid:34)uaranteed Senior (cid:41)otes due 2026 of Amcor Fle(cid:77)ibles (cid:41)orth America(cid:11) Inc.
4.500(cid:4) (cid:34)uaranteed Senior (cid:41)otes due 2028 of Amcor Fle(cid:77)ibles (cid:41)orth America(cid:11) Inc.
2.630(cid:4) (cid:34)uaranteed Senior (cid:41)otes due 2030 of Amcor Fle(cid:77)ibles (cid:41)orth America(cid:11) Inc.
2.6(cid:24)0(cid:4) (cid:34)uaranteed Senior (cid:41)otes due 2031 of Amcor Fle(cid:77)ibles (cid:41)orth America(cid:11) Inc.
1.125(cid:4) (cid:34)uaranteed Senior (cid:41)otes due 2027 of Amcor (cid:48)(cid:38) Finance plc
(cid:47)he si(cid:77) notes issued by Amcor Fle(cid:77)ibles (cid:41)orth America(cid:11) Inc. are guaranteed by its parent entity Amcor plc and the
subsidiary guarantors Amcor (cid:43)ty Ltd(cid:11) Amcor Finance ((cid:48)SA)(cid:11) Inc.(cid:11) and Amcor (cid:48)(cid:38) Finance plc. (cid:47)he note issued by Amcor (cid:48)(cid:38)
Finance plc is guaranteed by its parent entity(cid:11) Amcor plc and the subsidiary guarantors Amcor (cid:43)ty Ltd(cid:11) Amcor Fle(cid:77)ibles (cid:41)orth
America(cid:11) Inc.(cid:11) and Amcor Finance ((cid:48)SA)(cid:11) Inc.
On (cid:37)une 30(cid:11) 2022(cid:11) Amcor Finance ((cid:48)SA)(cid:11) Inc. and Amcor Fle(cid:77)ibles (cid:41)orth America(cid:11) Inc. entered into supplemental
indentures governing Amcor Finance ((cid:48)SA)(cid:11) Inc.(cid:6)s 3.625(cid:4) (cid:34)uaranteed Senior (cid:41)otes due 2026 and 4.500(cid:4) (cid:34)uaranteed Senior
(cid:41)otes due 2028 relating to the substitution of Amcor Fle(cid:77)ibles (cid:41)orth America(cid:11) Inc. for Amcor Finance ((cid:48)SA)(cid:11) Inc. and the
assumption by Amcor Fle(cid:77)ibles (cid:41)orth America(cid:11) Inc. of the covenants of Amcor Finance ((cid:48)SA)(cid:11) Inc in the indenture and the
securities. Both Amcor Finance ((cid:48)SA)(cid:11) Inc. and Amcor Fle(cid:77)ibles (cid:41)orth America(cid:11) Inc. remain as guarantors of the 3.625(cid:4)
(cid:34)uaranteed Senior (cid:41)otes due 2026 and 4.500(cid:4) (cid:34)uaranteed Senior (cid:41)otes due 2028.
All guarantors fully(cid:11) unconditionally(cid:11) and irrevocably guarantee(cid:11) on a (cid:63)oint and several basis(cid:11) to each holder of the
notes(cid:11) the due and punctual payment of the principal of(cid:11) and any premium and interest on(cid:11) such note and all other amounts
payable(cid:11) (cid:76)hen and as the same shall become due and payable(cid:11) (cid:76)hether at stated maturity(cid:11) by declaration of acceleration(cid:11) call for
redemption or other(cid:76)ise(cid:11) in accordance (cid:76)ith the terms of the notes and related indenture. (cid:47)he obligations of the applicable
guarantors under their guarantees (cid:76)ill be limited as necessary to recogni(cid:79)e certain defenses generally available to guarantors
(including those that relate to fraudulent conveyance or transfer(cid:11) voidable preference(cid:11) financial assistance(cid:11) corporate purpose(cid:11) or
similar la(cid:76)s) under applicable la(cid:76). (cid:47)he guarantees (cid:76)ill be unsecured and unsubordinated obligations of the guarantors and (cid:76)ill
ran(cid:64) equally (cid:76)ith all e(cid:77)isting and future unsecured and unsubordinated debt of each guarantor. (cid:41)one of our other subsidiaries
guarantee such notes. (cid:47)he issuers and guarantors conduct large parts of their operations through other subsidiaries of Amcor
plc.
Amcor Fle(cid:77)ibles (cid:41)orth America(cid:11) Inc. is incorporated in (cid:40)issouri in the (cid:48)nited States(cid:11) Amcor (cid:48)(cid:38) Finance plc is
incorporated in England and (cid:50)ales(cid:11) (cid:48)nited (cid:38)ingdom(cid:11) and the guarantors are incorporated under the la(cid:76)s of (cid:37)ersey(cid:11) Australia(cid:11)
the (cid:48)nited States(cid:11) and England and (cid:50)ales and(cid:11) therefore(cid:11) insolvency proceedings (cid:76)ith respect to the issuers and guarantors
could proceed under(cid:11) and be governed by(cid:11) among others(cid:11) (cid:37)ersey(cid:11) Australian(cid:11) (cid:48)nited States(cid:11) or English insolvency la(cid:76)(cid:11) as the
case may be(cid:11) if either issuer or any guarantor defaults on its obligations under the applicable (cid:41)otes or (cid:34)uarantees(cid:11) respectively.
Set forth belo(cid:76) is the summari(cid:79)ed financial information of the combined Obligor (cid:34)roup made up of Amcor plc (as
parent guarantor)(cid:11) Amcor Fle(cid:77)ibles (cid:41)orth America(cid:11) Inc. and Amcor (cid:48)(cid:38) Finance plc (as subsidiary issuers of the notes and
guarantors of each other(cid:89)s notes)(cid:11) and Amcor Finance ((cid:48)SA)(cid:11) Inc. and Amcor (cid:43)ty Ltd (as the remaining subsidiary guarantors).
35
Amcor Annual Report 2022
36
(2)
Impairments in equity method investments include the impairment charges related to other(cid:12)than(cid:12)temporary impairments related to
the investment in A(cid:40)(cid:49)I(cid:34). (cid:31)uring the fiscal year 2021(cid:11) (cid:76)e sold our interest in A(cid:40)(cid:49)I(cid:34). (cid:45)efer to (cid:41)ote 8(cid:11) "Equity (cid:40)ethod and Other
Investments(cid:11)" for more information about our equity method investments.
(3)
Includes costs associated (cid:76)ith the Bemis transaction. Fiscal year 2021 includes a $1(cid:24) million benefit related to Bra(cid:79)il indirect ta(cid:77)es
resulting from a (cid:40)ay 2021 Bra(cid:79)il Supreme Court decision. (cid:31)uring fiscal year 2020(cid:11) material acquisition costs and other includes
$58 million amorti(cid:79)ation of Bemis acquisition related inventory fair value step(cid:12)up and $88 million of Bemis transaction related
costs and integration costs not qualifying as e(cid:77)it costs(cid:11) including certain advisory(cid:11) legal(cid:11) audit(cid:11) and audit related fees.
(4) Amorti(cid:79)ation of acquired intangible assets from business combinations includes amorti(cid:79)ation e(cid:77)penses related to all acquired
intangible assets from past acquisitions(cid:11) including $26 million of sales bac(cid:64)log amorti(cid:79)ation for the fiscal year 2020 from the Bemis
(5)
Impact of hyperinflation includes the adverse impact of highly inflationary accounting for subsidiaries in Argentina (cid:76)here the
acquisition.
functional currency (cid:76)as the Argentine (cid:43)eso.
(6) (cid:43)ension settlements in fiscal year 2022 relate to the purchases of group annuity contracts and transfer of pension plan assets and
related benefit obligations. (cid:45)efer to (cid:41)ote 13(cid:11) "(cid:43)ension and Other (cid:43)ost(cid:12)(cid:45)etirement (cid:43)lans(cid:11)" for more information. For fiscal year
2020(cid:11) impact of pension settlements includes the amount of actuarial losses recogni(cid:79)ed in the consolidated statements of income
related to the settlement of certain defined benefit plans(cid:11) not including related ta(cid:77) effects.
(7) (cid:41)et (gain)(cid:14)loss on disposals includes an e(cid:77)pense of $10 million from the disposal of non(cid:12)core assets for fiscal year 2022. (cid:45)efer to
(cid:41)ote 11(cid:11) "Fair (cid:49)alue (cid:40)easurements(cid:11)" for more information. Fiscal year 2021 includes the gain reali(cid:79)ed upon the disposal of
A(cid:40)(cid:49)I(cid:34) and the loss upon disposal of other non(cid:12)core businesses not part of material restructuring programs. (cid:45)efer to (cid:41)ote 8(cid:11)
"Equity (cid:40)ethod and Other Investments(cid:11)" for further information on the disposal of A(cid:40)(cid:49)I(cid:34) and (cid:41)ote 5(cid:11) "(cid:31)ivestitures(cid:11)" for more
information about our other disposals.
(8) (cid:43)roperty and other losses(cid:11) net includes property and related business losses primarily associated (cid:76)ith the destruction of our (cid:31)urban(cid:11)
South Africa facility during general civil unrest in (cid:37)uly 2021(cid:11) net of insurance recovery.
((cid:24)) (cid:45)ussia(cid:12)(cid:48)(cid:64)raine conflict impacts include $138 million of impairment charges(cid:11) $57 million of restructuring and related e(cid:77)penses(cid:11) and
$5 million of other e(cid:77)penses for fiscal year 2022. (cid:45)efer to (cid:41)ote 4(cid:11)"(cid:45)estructuring(cid:11) Impairment(cid:11) and (cid:45)elated E(cid:77)penses(cid:11) (cid:41)et(cid:11)" and
(cid:41)ote 7(cid:11) "(cid:45)estructuring(cid:11)" for further information.
(10) (cid:41)et ta(cid:77) impact on items (1) through ((cid:24)) above.
Re(cid:39)o(cid:50)(cid:39)i(cid:48)ia(cid:56)io(cid:50) of (cid:28)e(cid:56) (cid:18)e(cid:38)(cid:56)
A reconciliation of total debt to net debt at (cid:37)une 30(cid:11) 2022 and 2021 is as follo(cid:76)s(cid:25)
((cid:3) in millions)
Short(cid:12)term debt
Current portion of long(cid:12)term debt
Long(cid:12)term debt(cid:11) less current portion
(cid:47)otal debt
(cid:38)et debt
Less cash and cash equivalents
June 30, 2022
June 30, 2021
$
(cid:3)
14 $
136
6(cid:11)340
6(cid:11)4(cid:24)0
775
(cid:19),(cid:21)1(cid:19) (cid:3)
5
(cid:24)8
6(cid:11)186
6(cid:11)28(cid:24)
850
(cid:19),(cid:18)3(cid:23)
35
Form 10-K
36
Supplemental (cid:31)uarantor Information
Amcor plc(cid:11) along (cid:76)ith certain (cid:76)holly o(cid:76)ned subsidiary guarantors(cid:11) guarantee the follo(cid:76)ing senior notes issued by the
(cid:76)holly o(cid:76)ned subsidiaries(cid:11) Amcor Fle(cid:77)ibles (cid:41)orth America(cid:11) Inc. and Amcor (cid:48)(cid:38) Finance plc.
(cid:82)
(cid:82)
(cid:82)
(cid:82)
(cid:82)
(cid:82)
(cid:82)
4.000(cid:4) (cid:34)uaranteed Senior (cid:41)otes due 2025 of Amcor Fle(cid:77)ibles (cid:41)orth America(cid:11) Inc.
3.100(cid:4) (cid:34)uaranteed Senior (cid:41)otes due 2026 of Amcor Fle(cid:77)ibles (cid:41)orth America(cid:11) Inc.
3.625(cid:4) (cid:34)uaranteed Senior (cid:41)otes due 2026 of Amcor Fle(cid:77)ibles (cid:41)orth America(cid:11) Inc.
4.500(cid:4) (cid:34)uaranteed Senior (cid:41)otes due 2028 of Amcor Fle(cid:77)ibles (cid:41)orth America(cid:11) Inc.
2.630(cid:4) (cid:34)uaranteed Senior (cid:41)otes due 2030 of Amcor Fle(cid:77)ibles (cid:41)orth America(cid:11) Inc.
2.6(cid:24)0(cid:4) (cid:34)uaranteed Senior (cid:41)otes due 2031 of Amcor Fle(cid:77)ibles (cid:41)orth America(cid:11) Inc.
1.125(cid:4) (cid:34)uaranteed Senior (cid:41)otes due 2027 of Amcor (cid:48)(cid:38) Finance plc
(cid:47)he si(cid:77) notes issued by Amcor Fle(cid:77)ibles (cid:41)orth America(cid:11) Inc. are guaranteed by its parent entity Amcor plc and the
subsidiary guarantors Amcor (cid:43)ty Ltd(cid:11) Amcor Finance ((cid:48)SA)(cid:11) Inc.(cid:11) and Amcor (cid:48)(cid:38) Finance plc. (cid:47)he note issued by Amcor (cid:48)(cid:38)
Finance plc is guaranteed by its parent entity(cid:11) Amcor plc and the subsidiary guarantors Amcor (cid:43)ty Ltd(cid:11) Amcor Fle(cid:77)ibles (cid:41)orth
America(cid:11) Inc.(cid:11) and Amcor Finance ((cid:48)SA)(cid:11) Inc.
On (cid:37)une 30(cid:11) 2022(cid:11) Amcor Finance ((cid:48)SA)(cid:11) Inc. and Amcor Fle(cid:77)ibles (cid:41)orth America(cid:11) Inc. entered into supplemental
indentures governing Amcor Finance ((cid:48)SA)(cid:11) Inc.(cid:6)s 3.625(cid:4) (cid:34)uaranteed Senior (cid:41)otes due 2026 and 4.500(cid:4) (cid:34)uaranteed Senior
(cid:41)otes due 2028 relating to the substitution of Amcor Fle(cid:77)ibles (cid:41)orth America(cid:11) Inc. for Amcor Finance ((cid:48)SA)(cid:11) Inc. and the
assumption by Amcor Fle(cid:77)ibles (cid:41)orth America(cid:11) Inc. of the covenants of Amcor Finance ((cid:48)SA)(cid:11) Inc in the indenture and the
securities. Both Amcor Finance ((cid:48)SA)(cid:11) Inc. and Amcor Fle(cid:77)ibles (cid:41)orth America(cid:11) Inc. remain as guarantors of the 3.625(cid:4)
(cid:34)uaranteed Senior (cid:41)otes due 2026 and 4.500(cid:4) (cid:34)uaranteed Senior (cid:41)otes due 2028.
All guarantors fully(cid:11) unconditionally(cid:11) and irrevocably guarantee(cid:11) on a (cid:63)oint and several basis(cid:11) to each holder of the
notes(cid:11) the due and punctual payment of the principal of(cid:11) and any premium and interest on(cid:11) such note and all other amounts
payable(cid:11) (cid:76)hen and as the same shall become due and payable(cid:11) (cid:76)hether at stated maturity(cid:11) by declaration of acceleration(cid:11) call for
redemption or other(cid:76)ise(cid:11) in accordance (cid:76)ith the terms of the notes and related indenture. (cid:47)he obligations of the applicable
guarantors under their guarantees (cid:76)ill be limited as necessary to recogni(cid:79)e certain defenses generally available to guarantors
(including those that relate to fraudulent conveyance or transfer(cid:11) voidable preference(cid:11) financial assistance(cid:11) corporate purpose(cid:11) or
similar la(cid:76)s) under applicable la(cid:76). (cid:47)he guarantees (cid:76)ill be unsecured and unsubordinated obligations of the guarantors and (cid:76)ill
ran(cid:64) equally (cid:76)ith all e(cid:77)isting and future unsecured and unsubordinated debt of each guarantor. (cid:41)one of our other subsidiaries
guarantee such notes. (cid:47)he issuers and guarantors conduct large parts of their operations through other subsidiaries of Amcor
plc.
Amcor Fle(cid:77)ibles (cid:41)orth America(cid:11) Inc. is incorporated in (cid:40)issouri in the (cid:48)nited States(cid:11) Amcor (cid:48)(cid:38) Finance plc is
incorporated in England and (cid:50)ales(cid:11) (cid:48)nited (cid:38)ingdom(cid:11) and the guarantors are incorporated under the la(cid:76)s of (cid:37)ersey(cid:11) Australia(cid:11)
the (cid:48)nited States(cid:11) and England and (cid:50)ales and(cid:11) therefore(cid:11) insolvency proceedings (cid:76)ith respect to the issuers and guarantors
could proceed under(cid:11) and be governed by(cid:11) among others(cid:11) (cid:37)ersey(cid:11) Australian(cid:11) (cid:48)nited States(cid:11) or English insolvency la(cid:76)(cid:11) as the
case may be(cid:11) if either issuer or any guarantor defaults on its obligations under the applicable (cid:41)otes or (cid:34)uarantees(cid:11) respectively.
Set forth belo(cid:76) is the summari(cid:79)ed financial information of the combined Obligor (cid:34)roup made up of Amcor plc (as
parent guarantor)(cid:11) Amcor Fle(cid:77)ibles (cid:41)orth America(cid:11) Inc. and Amcor (cid:48)(cid:38) Finance plc (as subsidiary issuers of the notes and
guarantors of each other(cid:89)s notes)(cid:11) and Amcor Finance ((cid:48)SA)(cid:11) Inc. and Amcor (cid:43)ty Ltd (as the remaining subsidiary guarantors).
35
36
Amcor Annual Report 2022
Form 10-K
37
(cid:16)asis of (cid:30)re(cid:52)ara(cid:56)io(cid:50)
Li(cid:67)uidity and Capital Resources
(cid:47)he follo(cid:76)ing summari(cid:79)ed financial information is presented for the parent(cid:11) issuer(cid:11) and guarantor subsidiaries
("Obligor (cid:34)roup") on a combined basis after elimination of intercompany transactions bet(cid:76)een entities in the combined group
and amounts related to investments in any subsidiary that is a non(cid:12)guarantor.
(cid:47)his information is not intended to present the financial position or results of operations of the combined group of
companies in accordance (cid:76)ith (cid:48).S. (cid:34)AA(cid:43).
Statement of Income for Obligor (cid:31)roup
(in millions)
For the year ended June 30,
(cid:41)et sales (cid:12) e(cid:77)ternal
(cid:41)et sales (cid:12) to subsidiaries outside the Obligor (cid:34)roup
(cid:47)otal net sales
(cid:34)ross profit
(cid:38)et income (1)
(cid:41)et income attributable to non(cid:12)controlling interests
(cid:38)et income attributable to Obligor (cid:31)roup
$
$
(cid:3)
(cid:3)
2022
1(cid:11)0(cid:24)2
11
1(cid:11)103
1(cid:24)0
3(cid:23)(cid:23)
(cid:85)
3(cid:23)(cid:23)
(cid:50)e finance our business primarily through cash flo(cid:76)s provided by operating activities(cid:11) borro(cid:76)ings from ban(cid:64)s(cid:11) and
proceeds from issuances of debt and equity. (cid:50)e periodically revie(cid:76) our capital structure and liquidity position in light of
mar(cid:64)et conditions(cid:11) e(cid:77)pected future cash flo(cid:76)s(cid:11) potential funding requirements for debt refinancing(cid:11) capital e(cid:77)penditures and
acquisitions(cid:11) the cost of capital(cid:11) sensitivity analyses reflecting do(cid:76)nside scenarios(cid:11) the impact on our financial metrics and
credit ratings(cid:11) and our ease of access to funding sources.
(cid:47)he CO(cid:49)I(cid:31)(cid:12)1(cid:24) pandemic and geopolitical tensions have not materially impacted our liquidity position(cid:11) current and
e(cid:77)pected cash flo(cid:76)s from operating activities(cid:11) or available cash. (cid:50)e believe that our cash flo(cid:76)s provided by operating
activities(cid:11) together (cid:76)ith borro(cid:76)ings available under our credit facilities and access to the commercial paper mar(cid:64)et(cid:11)
bac(cid:64)stopped by our ban(cid:64) debt facilities(cid:11) (cid:76)ill continue to provide sufficient liquidity to fund our operations(cid:11) capital e(cid:77)penditures(cid:11)
and other commitments(cid:11) including dividends and purchases of our ordinary shares and C(cid:35)ESS (cid:31)epositary Instruments under
authori(cid:79)ed share repurchase programs(cid:11) into the foreseeable future.
(cid:29)(cid:58)er(cid:58)iew
((cid:3) in millions)
(cid:41)et cash provided by operating activities
(cid:41)et cash (used in)(cid:14)provided by investing activities
(cid:41)et cash used in financing activities
(cid:17)as(cid:44) (cid:20)(cid:48)ow (cid:29)(cid:58)er(cid:58)iew
Year Ended June 30,
2022
2021
$
1(cid:11)526 $
(527)
(8(cid:24)1)
1(cid:11)461
(233)
(1(cid:11)17(cid:24))
(1)
Includes $648 million of net intercompany income mainly attributable to intercompany dividends and intercompany interest
income.
(cid:28)et Ca(cid:53)(cid:43) (cid:30)ro(cid:56)(cid:44)ded (cid:37)(cid:59) (cid:29)(cid:51)erat(cid:44)ng (cid:16)(cid:38)t(cid:44)(cid:56)(cid:44)t(cid:44)e(cid:53)
Balance Sheet for Obligor (cid:31)roup
(in millions)
As of June 30,
Current assets (cid:12) e(cid:77)ternal
Assets
Current assets (cid:12) due from subsidiaries outside the Obligor (cid:34)roup
(cid:47)otal current assets
(cid:41)on(cid:12)current assets (cid:12) e(cid:77)ternal
(cid:41)on(cid:12)current assets (cid:12) due from subsidiaries outside the Obligor (cid:34)roup
(cid:47)otal non(cid:12)current assets
(cid:44)otal assets
Current liabilities (cid:12) e(cid:77)ternal
Liabilities
Current liabilities (cid:12) due to subsidiaries outside the Obligor (cid:34)roup
(cid:47)otal current liabilities
(cid:41)on(cid:12)current liabilities (cid:12) e(cid:77)ternal
(cid:41)on(cid:12)current liabilities (cid:12) due to subsidiaries outside the Obligor (cid:34)roup
(cid:47)otal non(cid:12)current liabilities
(cid:44)otal liabilities
2022
(cid:41)et cash inflo(cid:76)s provided by operating activities increased by $65 million(cid:11) or by 4(cid:4)(cid:11) in fiscal year 2022(cid:11) compared to
fiscal year 2021. (cid:47)his increase (cid:76)as primarily due to higher net income(cid:11) ad(cid:63)usted for non(cid:12)cash items(cid:11) in fiscal year 2022(cid:11)
partially offset by (cid:76)or(cid:64)ing capital outflo(cid:76)s compared (cid:76)ith fiscal year 2021. (cid:47)he variance in "Other(cid:11) net" (cid:76)ithin net cash
inflo(cid:76)s provided by operating activities is primarily attributed to the timing of ta(cid:77) payments bet(cid:76)een periods.
$
(cid:3)
$
(cid:3)
1(cid:11)254
83
1(cid:11)337
1(cid:11)3(cid:24)6
10(cid:11)(cid:24)78
12(cid:11)374
13,(cid:21)11
2(cid:11)014
23
2(cid:11)037
6(cid:11)456
11(cid:11)255
17(cid:11)711
1(cid:23),(cid:21)(cid:18)(cid:22)
(cid:28)et Ca(cid:53)(cid:43) (cid:3)(cid:34)(cid:53)ed (cid:44)n(cid:4)(cid:8)(cid:30)ro(cid:56)(cid:44)ded (cid:37)(cid:59) In(cid:56)e(cid:53)t(cid:44)ng (cid:16)(cid:38)t(cid:44)(cid:56)(cid:44)t(cid:44)e(cid:53)
(cid:41)et cash outflo(cid:76)s from investing activities increased by $2(cid:24)4 million(cid:11) or by 126(cid:4)(cid:11) in fiscal year 2022(cid:11) compared to
fiscal year 2021. (cid:47)his increase (cid:76)as primarily due to higher disposal proceeds from the disposal of A(cid:40)(cid:49)I(cid:34)(cid:11) the European
hospital supplies business and other non(cid:12)core businesses in fiscal year 2021 and higher capital e(cid:77)penditures in fiscal year 2022.
Capital e(cid:77)penditures (cid:76)ere $527 million for fiscal year 2022(cid:11) an increase of $5(cid:24) million compared to $468 million for
fiscal year 2021. (cid:47)he increase in capital e(cid:77)penditures (cid:76)as primarily due to the increased capital spending in the Fle(cid:77)ibles
(cid:28)et Ca(cid:53)(cid:43) (cid:34)(cid:53)ed (cid:44)n F(cid:44)nan(cid:38)(cid:44)ng (cid:16)(cid:38)t(cid:44)(cid:56)(cid:44)t(cid:44)e(cid:53)
(cid:41)et cash flo(cid:76)s used in financing activities decreased by $288 million(cid:11) or by 24(cid:4)(cid:11) in fiscal year 2022(cid:11) compared to
fiscal year 2021. (cid:47)his decrease is primarily due to higher cash net debt dra(cid:76)do(cid:76)ns compared (cid:76)ith fiscal year 2021(cid:11) partially
offset by higher share buybac(cid:64)s and on(cid:12)mar(cid:64)et purchases of o(cid:76)n shares in fiscal year 2022.
segment.
(cid:28)e(cid:56) (cid:18)e(cid:38)(cid:56)
(cid:50)e borro(cid:76) from financial institutions and debt investors in the form of ban(cid:64) overdrafts(cid:11) ban(cid:64) loans(cid:11) corporate bonds(cid:11)
unsecured notes(cid:11) and commercial paper. (cid:50)e have a mi(cid:77)ture of fi(cid:77)ed and floating interest rates and use interest rate s(cid:76)aps to
provide further fle(cid:77)ibility in managing the interest cost of borro(cid:76)ings.
Short(cid:12)term debt consists of ban(cid:64) debt (cid:76)ith a duration of less than 12 months and ban(cid:64) overdrafts (cid:76)hich are classified
as current due to the short(cid:12)term nature of the borro(cid:76)ings(cid:11) e(cid:77)cept (cid:76)here (cid:76)e have the ability and intent to refinance and as such
e(cid:77)tend the debt beyond 12 months. (cid:47)he current portion of long(cid:12)term debt consists of debt amounts repayable (cid:76)ithin a year after
the balance sheet date.
37
Amcor Annual Report 2022
38
(cid:16)asis of (cid:30)re(cid:52)ara(cid:56)io(cid:50)
Li(cid:67)uidity and Capital Resources
37
Form 10-K
38
(cid:47)he follo(cid:76)ing summari(cid:79)ed financial information is presented for the parent(cid:11) issuer(cid:11) and guarantor subsidiaries
("Obligor (cid:34)roup") on a combined basis after elimination of intercompany transactions bet(cid:76)een entities in the combined group
and amounts related to investments in any subsidiary that is a non(cid:12)guarantor.
(cid:47)his information is not intended to present the financial position or results of operations of the combined group of
companies in accordance (cid:76)ith (cid:48).S. (cid:34)AA(cid:43).
Statement of Income for Obligor (cid:31)roup
(in millions)
(1)
Includes $648 million of net intercompany income mainly attributable to intercompany dividends and intercompany interest
Balance Sheet for Obligor (cid:31)roup
(in millions)
For the year ended June 30,
(cid:41)et sales (cid:12) e(cid:77)ternal
(cid:41)et sales (cid:12) to subsidiaries outside the Obligor (cid:34)roup
(cid:47)otal net sales
(cid:34)ross profit
(cid:38)et income (1)
(cid:41)et income attributable to non(cid:12)controlling interests
(cid:38)et income attributable to Obligor (cid:31)roup
income.
Current assets (cid:12) due from subsidiaries outside the Obligor (cid:34)roup
(cid:41)on(cid:12)current assets (cid:12) due from subsidiaries outside the Obligor (cid:34)roup
Assets
Liabilities
As of June 30,
Current assets (cid:12) e(cid:77)ternal
(cid:47)otal current assets
(cid:41)on(cid:12)current assets (cid:12) e(cid:77)ternal
(cid:47)otal non(cid:12)current assets
(cid:44)otal assets
Current liabilities (cid:12) e(cid:77)ternal
(cid:47)otal current liabilities
(cid:41)on(cid:12)current liabilities (cid:12) e(cid:77)ternal
(cid:47)otal non(cid:12)current liabilities
(cid:44)otal liabilities
Current liabilities (cid:12) due to subsidiaries outside the Obligor (cid:34)roup
(cid:41)on(cid:12)current liabilities (cid:12) due to subsidiaries outside the Obligor (cid:34)roup
$
$
(cid:3)
(cid:3)
$
(cid:3)
$
(cid:3)
2022
2022
1(cid:11)0(cid:24)2
11
1(cid:11)103
1(cid:24)0
3(cid:23)(cid:23)
(cid:85)
3(cid:23)(cid:23)
1(cid:11)254
83
1(cid:11)337
1(cid:11)3(cid:24)6
10(cid:11)(cid:24)78
12(cid:11)374
13,(cid:21)11
2(cid:11)014
23
2(cid:11)037
6(cid:11)456
11(cid:11)255
17(cid:11)711
1(cid:23),(cid:21)(cid:18)(cid:22)
(cid:50)e finance our business primarily through cash flo(cid:76)s provided by operating activities(cid:11) borro(cid:76)ings from ban(cid:64)s(cid:11) and
proceeds from issuances of debt and equity. (cid:50)e periodically revie(cid:76) our capital structure and liquidity position in light of
mar(cid:64)et conditions(cid:11) e(cid:77)pected future cash flo(cid:76)s(cid:11) potential funding requirements for debt refinancing(cid:11) capital e(cid:77)penditures and
acquisitions(cid:11) the cost of capital(cid:11) sensitivity analyses reflecting do(cid:76)nside scenarios(cid:11) the impact on our financial metrics and
credit ratings(cid:11) and our ease of access to funding sources.
(cid:47)he CO(cid:49)I(cid:31)(cid:12)1(cid:24) pandemic and geopolitical tensions have not materially impacted our liquidity position(cid:11) current and
e(cid:77)pected cash flo(cid:76)s from operating activities(cid:11) or available cash. (cid:50)e believe that our cash flo(cid:76)s provided by operating
activities(cid:11) together (cid:76)ith borro(cid:76)ings available under our credit facilities and access to the commercial paper mar(cid:64)et(cid:11)
bac(cid:64)stopped by our ban(cid:64) debt facilities(cid:11) (cid:76)ill continue to provide sufficient liquidity to fund our operations(cid:11) capital e(cid:77)penditures(cid:11)
and other commitments(cid:11) including dividends and purchases of our ordinary shares and C(cid:35)ESS (cid:31)epositary Instruments under
authori(cid:79)ed share repurchase programs(cid:11) into the foreseeable future.
(cid:29)(cid:58)er(cid:58)iew
((cid:3) in millions)
(cid:41)et cash provided by operating activities
(cid:41)et cash (used in)(cid:14)provided by investing activities
(cid:41)et cash used in financing activities
(cid:17)as(cid:44) (cid:20)(cid:48)ow (cid:29)(cid:58)er(cid:58)iew
(cid:28)et Ca(cid:53)(cid:43) (cid:30)ro(cid:56)(cid:44)ded (cid:37)(cid:59) (cid:29)(cid:51)erat(cid:44)ng (cid:16)(cid:38)t(cid:44)(cid:56)(cid:44)t(cid:44)e(cid:53)
Year Ended June 30,
2022
2021
$
1(cid:11)526 $
(527)
(8(cid:24)1)
1(cid:11)461
(233)
(1(cid:11)17(cid:24))
(cid:41)et cash inflo(cid:76)s provided by operating activities increased by $65 million(cid:11) or by 4(cid:4)(cid:11) in fiscal year 2022(cid:11) compared to
fiscal year 2021. (cid:47)his increase (cid:76)as primarily due to higher net income(cid:11) ad(cid:63)usted for non(cid:12)cash items(cid:11) in fiscal year 2022(cid:11)
partially offset by (cid:76)or(cid:64)ing capital outflo(cid:76)s compared (cid:76)ith fiscal year 2021. (cid:47)he variance in "Other(cid:11) net" (cid:76)ithin net cash
inflo(cid:76)s provided by operating activities is primarily attributed to the timing of ta(cid:77) payments bet(cid:76)een periods.
(cid:28)et Ca(cid:53)(cid:43) (cid:3)(cid:34)(cid:53)ed (cid:44)n(cid:4)(cid:8)(cid:30)ro(cid:56)(cid:44)ded (cid:37)(cid:59) In(cid:56)e(cid:53)t(cid:44)ng (cid:16)(cid:38)t(cid:44)(cid:56)(cid:44)t(cid:44)e(cid:53)
(cid:41)et cash outflo(cid:76)s from investing activities increased by $2(cid:24)4 million(cid:11) or by 126(cid:4)(cid:11) in fiscal year 2022(cid:11) compared to
fiscal year 2021. (cid:47)his increase (cid:76)as primarily due to higher disposal proceeds from the disposal of A(cid:40)(cid:49)I(cid:34)(cid:11) the European
hospital supplies business and other non(cid:12)core businesses in fiscal year 2021 and higher capital e(cid:77)penditures in fiscal year 2022.
Capital e(cid:77)penditures (cid:76)ere $527 million for fiscal year 2022(cid:11) an increase of $5(cid:24) million compared to $468 million for
fiscal year 2021. (cid:47)he increase in capital e(cid:77)penditures (cid:76)as primarily due to the increased capital spending in the Fle(cid:77)ibles
segment.
(cid:28)et Ca(cid:53)(cid:43) (cid:34)(cid:53)ed (cid:44)n F(cid:44)nan(cid:38)(cid:44)ng (cid:16)(cid:38)t(cid:44)(cid:56)(cid:44)t(cid:44)e(cid:53)
(cid:41)et cash flo(cid:76)s used in financing activities decreased by $288 million(cid:11) or by 24(cid:4)(cid:11) in fiscal year 2022(cid:11) compared to
fiscal year 2021. (cid:47)his decrease is primarily due to higher cash net debt dra(cid:76)do(cid:76)ns compared (cid:76)ith fiscal year 2021(cid:11) partially
offset by higher share buybac(cid:64)s and on(cid:12)mar(cid:64)et purchases of o(cid:76)n shares in fiscal year 2022.
(cid:28)e(cid:56) (cid:18)e(cid:38)(cid:56)
(cid:50)e borro(cid:76) from financial institutions and debt investors in the form of ban(cid:64) overdrafts(cid:11) ban(cid:64) loans(cid:11) corporate bonds(cid:11)
unsecured notes(cid:11) and commercial paper. (cid:50)e have a mi(cid:77)ture of fi(cid:77)ed and floating interest rates and use interest rate s(cid:76)aps to
provide further fle(cid:77)ibility in managing the interest cost of borro(cid:76)ings.
Short(cid:12)term debt consists of ban(cid:64) debt (cid:76)ith a duration of less than 12 months and ban(cid:64) overdrafts (cid:76)hich are classified
as current due to the short(cid:12)term nature of the borro(cid:76)ings(cid:11) e(cid:77)cept (cid:76)here (cid:76)e have the ability and intent to refinance and as such
e(cid:77)tend the debt beyond 12 months. (cid:47)he current portion of long(cid:12)term debt consists of debt amounts repayable (cid:76)ithin a year after
the balance sheet date.
37
38
Amcor Annual Report 2022
Form 10-K
39
Our primary ban(cid:64) debt facilities and notes are unsecured and sub(cid:63)ect to negative pledge arrangements limiting the
(cid:27)a(cid:56)eria(cid:48) (cid:17)as(cid:44) Re(cid:53)(cid:57)ireme(cid:50)(cid:56)s
amount of secured indebtedness (cid:76)e can incur to 10.0(cid:4) of our total tangible assets(cid:11) sub(cid:63)ect to some e(cid:77)ceptions and variations by
facility. In addition(cid:11) the covenants of the ban(cid:64) debt facilities require us to maintain a leverage ratio not higher than 3.(cid:24) times.
(cid:47)he negative pledge arrangements and the financial covenants are defined in the related debt agreements. As of (cid:37)une 30(cid:11) 2022(cid:11)
(cid:76)e (cid:76)ere in compliance (cid:76)ith all applicable covenants under our ban(cid:64) debt facilities.
Our net debt as of (cid:37)une 30(cid:11) 2022 and (cid:37)une 30(cid:11) 2021 (cid:76)as $5.7 billion and $5.4 billion(cid:11) respectively.
(cid:15)(cid:58)ai(cid:48)a(cid:38)(cid:48)e (cid:20)i(cid:50)a(cid:50)(cid:39)i(cid:50)(cid:43)
As of (cid:37)une 30(cid:11) 2022(cid:11) (cid:76)e had undra(cid:76)n credit facilities available in the amount of $1.4 billion. Our senior facilities are
available to fund (cid:76)or(cid:64)ing capital(cid:11) gro(cid:76)th capital e(cid:77)penditures(cid:11) and refinancing obligations and are provided to us by t(cid:76)o ban(cid:64)
syndicates. (cid:47)hese facilities mature in April 2025 and April 2027(cid:11) respectively(cid:11) and the revolving tranches have t(cid:76)o 12(cid:12)month
options available to management to e(cid:77)tend the maturity date.
As of (cid:37)une 30(cid:11) 2022(cid:11) the revolving senior ban(cid:64) debt facilities had an aggregate limit of $3.8 billion(cid:11) of (cid:76)hich
$2.4 billion had been dra(cid:76)n (inclusive of amounts dra(cid:76)n under commercial paper programs reducing the overall balance of
available senior facilities). On April 26(cid:11) 2022(cid:11) (cid:76)e terminated the previously e(cid:77)isting senior ban(cid:64) debt facilities(cid:11) and
simultaneously(cid:11) (cid:76)e entered into ne(cid:76) three(cid:12) and five(cid:12)year syndicated facility agreements providing an aggregate limit of
$3.8 billion. Sub(cid:63)ect to certain conditions(cid:11) (cid:76)e can request the total commitment level under each agreement to be increased by
up to $500 million. For further information(cid:11) refer to (cid:41)ote 14(cid:11) "(cid:31)ebt."
On (cid:40)ay 17(cid:11) 2022(cid:11) (cid:76)e issued (cid:48).S. dollar notes (cid:76)ith a principal amount of $500 million and a contractual maturity in
(cid:40)ay 2025. (cid:47)he notes pay a coupon of 4.00(cid:4) per annum(cid:11) payable semi(cid:12)annually in arrears.
Amcor(cid:89)s material cash requirements for future periods from (cid:64)no(cid:76)n contractual obligations are included belo(cid:76). (cid:50)e
e(cid:77)pect to fund these cash requirements primarily through cash flo(cid:76)s provided by operating activities(cid:11) borro(cid:76)ings from ban(cid:64)s(cid:11)
and proceeds from issuances of debt and equity. (cid:47)hese amounts reflect material cash requirements for (cid:76)hich (cid:76)e are
contractually committed.
(cid:31)ebt obligations(cid:25) (cid:45)efer to (cid:41)ote 14(cid:11) (cid:86)(cid:31)ebt(cid:87) of the notes to consolidated financial statements for additional information
about our debt obligations and the related timing of these e(cid:77)pected payments.
Interest payments(cid:25) (cid:45)efer to (cid:41)ote 14(cid:11) (cid:86)(cid:31)ebt(cid:87) of the notes to consolidated financial statements for additional information
about our interest payments and the related timing of the e(cid:77)pected payments.
Operating and finance leases(cid:25) (cid:45)efer to (cid:41)ote 15(cid:11) (cid:86)Leases(cid:87) of the notes to consolidated financial statements for
information about our lease obligations and the related timing of the e(cid:77)pected payments.
Employee benefit plan obligations(cid:25) (cid:45)efer to (cid:41)ote 13(cid:11) (cid:86)(cid:43)ension and Other (cid:43)ost(cid:12)(cid:45)etirement (cid:43)lans(cid:87) of the notes to
consolidated financial statements for additional information about our employee benefit plan obligations and the
related timing of the e(cid:77)pected payments.
2023.
Capital e(cid:77)penditures(cid:25) As of (cid:37)une 30(cid:11) 2022(cid:11) (cid:76)e have $223 million in committed capital e(cid:77)penditures for the fiscal year
Other purchase obligations(cid:25) Amcor has other purchase obligations(cid:11) including commitments to purchase a specified
minimum amount of goods(cid:11) inclusive of ra(cid:76) materials(cid:11) utilities(cid:11) and other. (cid:47)hese obligations are legally binding and
non(cid:12)cancellable. (cid:50)here (cid:76)e are unable to determine the periods in (cid:76)hich these obligations could be payable under
these contracts(cid:11) (cid:76)e present the cash requirement in the earliest period in (cid:76)hich the minimum obligation could be
payable. (cid:47)he estimated future cash outlays are appro(cid:77)imately $1.6 billion(cid:11) $550 million(cid:11) $500 million(cid:11) $300 million(cid:11)
and $100 million in fiscal years 2023(cid:11) 2024(cid:11) 2025(cid:11) 2026(cid:11) and 2027(cid:11) respectively.
On (cid:31)ecember 15(cid:11) 2021(cid:11) (cid:76)e redeemed (cid:48).S. private placement notes of a principal amount of $275 million at maturity.
(cid:29)ff(cid:7)(cid:16)a(cid:48)a(cid:50)(cid:39)e S(cid:44)ee(cid:56) (cid:15)rra(cid:50)(cid:43)eme(cid:50)(cid:56)s
(cid:47)he notes carried an interest rate of 5.(cid:24)5(cid:4).
On (cid:37)uly 15(cid:11) 2021(cid:11) (cid:76)e redeemed (cid:48).S. dollar notes (cid:76)ith a principal amount of $400 million that had a contractual
maturity of October 15(cid:11) 2021 and carried an interest rate of 4.50(cid:4).
sheet contractual obligations or other commitments.
(cid:26)i(cid:53)(cid:57)i(cid:40)i(cid:56)(cid:61) Ris(cid:47) a(cid:50)(cid:40) (cid:29)(cid:57)(cid:56)(cid:48)oo(cid:47)
Other than as described under "(cid:40)aterial Cash (cid:45)equirements" as of (cid:37)une 30(cid:11) 2022(cid:11) (cid:76)e had no significant off(cid:12)balance
(cid:18)i(cid:58)i(cid:40)e(cid:50)(cid:40) (cid:30)a(cid:61)me(cid:50)(cid:56)s
In fiscal years 2022(cid:11) 2021(cid:11) and 2020(cid:11) (cid:76)e paid $732 million(cid:11) $742 million(cid:11) and $761 million(cid:11) respectively(cid:11) in dividends.
(cid:17)re(cid:40)i(cid:56) Ra(cid:56)i(cid:50)(cid:43)
Our capital structure and financial practices have earned us investment grade credit ratings from t(cid:76)o internationally
recogni(cid:79)ed credit rating agencies. (cid:47)hese investment grade credit ratings are important to our ability to issue debt at favorable
rates of interest(cid:11) for various terms(cid:11) and from a diverse range of mar(cid:64)ets that are highly liquid(cid:11) including European and (cid:48).S. debt
capital mar(cid:64)ets and from global financial institutions.
S(cid:44)are Re(cid:52)(cid:57)r(cid:39)(cid:44)ases
On August 17(cid:11) 2021(cid:11) our Board of (cid:31)irectors approved a $400 million buybac(cid:64) of ordinary shares and C(cid:35)ESS
(cid:31)epositary Instruments ("C(cid:31)Is"). In addition(cid:11) on February 1(cid:11) 2022(cid:11) our Board of (cid:31)irectors approved an additional $200 million
buybac(cid:64) of ordinary shares and C(cid:31)Is. (cid:31)uring the fiscal year ended (cid:37)une 30(cid:11) 2022(cid:11) (cid:76)e repurchased appro(cid:77)imately $600 million(cid:11)
e(cid:77)cluding transaction costs(cid:11) or 4(cid:24) million shares. (cid:47)he shares repurchased (cid:76)ere canceled upon repurchase. Additionally(cid:11) on
August 17(cid:11) 2022(cid:11) our Board of (cid:31)irectors approved a further $400 million buybac(cid:64) of ordinary shares and(cid:14)or C(cid:31)Is in the ne(cid:77)t
t(cid:76)elve months.
(cid:50)e had cash outflo(cid:76)s of $143 million(cid:11) $8 million(cid:11) and $67 million for the purchase of our shares in the open mar(cid:64)et
during fiscal years 2022(cid:11) 2021(cid:11) and 2020(cid:11) respectively(cid:11) as treasury shares to satisfy the vesting and e(cid:77)ercises of share(cid:12)based
compensation a(cid:76)ards. As of (cid:37)une 30(cid:11) 2022(cid:11) 2021(cid:11) and 2020(cid:11) (cid:76)e held treasury shares at cost of $18 million(cid:11) $2(cid:24) million(cid:11) and
$67 million(cid:11) representing 2 million(cid:11) 3 million(cid:11) and 7 million shares(cid:11) respectively.
Liquidity ris(cid:64) arises from the possibility that (cid:76)e might encounter difficulty in settling our debts or other(cid:76)ise meeting
our obligations related to financial liabilities. (cid:50)e manage liquidity ris(cid:64) centrally and such management involves maintaining
available funding and ensuring that (cid:76)e have access to an adequate amount of committed credit facilities. (cid:31)ue to the dynamic
nature of our business(cid:11) the aim is to maintain fle(cid:77)ibility (cid:76)ithin our funding structure through the use of ban(cid:64) overdrafts(cid:11) ban(cid:64)
loans(cid:11) corporate bonds(cid:11) unsecured notes(cid:11) and commercial paper. (cid:47)he follo(cid:76)ing guidelines are used to manage our liquidity ris(cid:64)(cid:25)
(cid:82) maintaining minimum undra(cid:76)n committed liquidity of at least $200 million that can be dra(cid:76)n at short notice(cid:26)
regularly performing a comprehensive analysis of all cash inflo(cid:76)s and outflo(cid:76)s in relation to operational(cid:11) investing(cid:11)
and financing activities(cid:26)
generally using tradable instruments only in highly liquid mar(cid:64)ets(cid:26)
(cid:82) maintaining a senior credit investment grade rating (cid:76)ith a reputable independent rating agency(cid:26)
(cid:82) managing credit ris(cid:64) related to financial assets(cid:26)
(cid:82) monitoring the duration of long(cid:12)term debt(cid:26)
only investing surplus cash (cid:76)ith ma(cid:63)or financial institutions(cid:26) and
to the e(cid:77)tent practicable(cid:11) spreading the maturity dates of long(cid:12)term debt facilities.
In the fourth quarter of fiscal year 2022(cid:11) (cid:76)e terminated our 3(cid:12)(cid:11) 4(cid:12)(cid:11) and 5(cid:12)year syndicated facility agreements. (cid:47)he three
facility agreements collectively provided $3.8 billion of credit facilities. On the same day(cid:11) (cid:76)e entered into three(cid:12) and five(cid:12)year
syndicated facility agreements that each provide a revolving credit facility of $1.(cid:24) billion(cid:11) $3.8 billion in total. (cid:47)he facilities are
unsecured and have contractual maturities in April 2025 and April 2027(cid:11) respectively. (cid:47)he agreements include customary terms
and conditions for a syndicated facility of this nature(cid:11) and the revolving tranches have t(cid:76)o 12(cid:12)month options available to
management to e(cid:77)tend the maturity date.
As of (cid:37)une 30(cid:11) 2022 and 2021(cid:11) an aggregate principal amount of $2.4 billion and $1.8 billion(cid:11) respectively(cid:11) (cid:76)as dra(cid:76)n
under commercial paper programs. (cid:35)o(cid:76)ever(cid:11) such programs are bac(cid:64)stopped by committed ban(cid:64) syndicated loan facilities (cid:76)ith
maturities in April 2025 ($1.(cid:24) billion)(cid:11) and April 2027 ($1.(cid:24) billion)(cid:11) (cid:76)ith an option to e(cid:77)tend(cid:11) under (cid:76)hich (cid:76)e had $1.4 billion
in unused capacity remaining as of (cid:37)une 30(cid:11) 2022.
(cid:82)
(cid:82)
(cid:82)
(cid:82)
(cid:82)
(cid:82)
(cid:82)
(cid:82)
(cid:82)
(cid:82)
3(cid:24)
Amcor Annual Report 2022
40
39
Form 10-K
(cid:23)0
Our primary ban(cid:64) debt facilities and notes are unsecured and sub(cid:63)ect to negative pledge arrangements limiting the
(cid:27)a(cid:56)eria(cid:48) (cid:17)as(cid:44) Re(cid:53)(cid:57)ireme(cid:50)(cid:56)s
amount of secured indebtedness (cid:76)e can incur to 10.0(cid:4) of our total tangible assets(cid:11) sub(cid:63)ect to some e(cid:77)ceptions and variations by
facility. In addition(cid:11) the covenants of the ban(cid:64) debt facilities require us to maintain a leverage ratio not higher than 3.(cid:24) times.
(cid:47)he negative pledge arrangements and the financial covenants are defined in the related debt agreements. As of (cid:37)une 30(cid:11) 2022(cid:11)
(cid:76)e (cid:76)ere in compliance (cid:76)ith all applicable covenants under our ban(cid:64) debt facilities.
Our net debt as of (cid:37)une 30(cid:11) 2022 and (cid:37)une 30(cid:11) 2021 (cid:76)as $5.7 billion and $5.4 billion(cid:11) respectively.
(cid:15)(cid:58)ai(cid:48)a(cid:38)(cid:48)e (cid:20)i(cid:50)a(cid:50)(cid:39)i(cid:50)(cid:43)
As of (cid:37)une 30(cid:11) 2022(cid:11) (cid:76)e had undra(cid:76)n credit facilities available in the amount of $1.4 billion. Our senior facilities are
available to fund (cid:76)or(cid:64)ing capital(cid:11) gro(cid:76)th capital e(cid:77)penditures(cid:11) and refinancing obligations and are provided to us by t(cid:76)o ban(cid:64)
syndicates. (cid:47)hese facilities mature in April 2025 and April 2027(cid:11) respectively(cid:11) and the revolving tranches have t(cid:76)o 12(cid:12)month
options available to management to e(cid:77)tend the maturity date.
As of (cid:37)une 30(cid:11) 2022(cid:11) the revolving senior ban(cid:64) debt facilities had an aggregate limit of $3.8 billion(cid:11) of (cid:76)hich
$2.4 billion had been dra(cid:76)n (inclusive of amounts dra(cid:76)n under commercial paper programs reducing the overall balance of
available senior facilities). On April 26(cid:11) 2022(cid:11) (cid:76)e terminated the previously e(cid:77)isting senior ban(cid:64) debt facilities(cid:11) and
simultaneously(cid:11) (cid:76)e entered into ne(cid:76) three(cid:12) and five(cid:12)year syndicated facility agreements providing an aggregate limit of
$3.8 billion. Sub(cid:63)ect to certain conditions(cid:11) (cid:76)e can request the total commitment level under each agreement to be increased by
up to $500 million. For further information(cid:11) refer to (cid:41)ote 14(cid:11) "(cid:31)ebt."
On (cid:40)ay 17(cid:11) 2022(cid:11) (cid:76)e issued (cid:48).S. dollar notes (cid:76)ith a principal amount of $500 million and a contractual maturity in
(cid:40)ay 2025. (cid:47)he notes pay a coupon of 4.00(cid:4) per annum(cid:11) payable semi(cid:12)annually in arrears.
Amcor(cid:89)s material cash requirements for future periods from (cid:64)no(cid:76)n contractual obligations are included belo(cid:76). (cid:50)e
e(cid:77)pect to fund these cash requirements primarily through cash flo(cid:76)s provided by operating activities(cid:11) borro(cid:76)ings from ban(cid:64)s(cid:11)
and proceeds from issuances of debt and equity. (cid:47)hese amounts reflect material cash requirements for (cid:76)hich (cid:76)e are
contractually committed.
(cid:82)
(cid:82)
(cid:82)
(cid:82)
(cid:82)
(cid:82)
(cid:31)ebt obligations(cid:25) (cid:45)efer to (cid:41)ote 14(cid:11) (cid:86)(cid:31)ebt(cid:87) of the notes to consolidated financial statements for additional information
about our debt obligations and the related timing of these e(cid:77)pected payments.
Interest payments(cid:25) (cid:45)efer to (cid:41)ote 14(cid:11) (cid:86)(cid:31)ebt(cid:87) of the notes to consolidated financial statements for additional information
about our interest payments and the related timing of the e(cid:77)pected payments.
Operating and finance leases(cid:25) (cid:45)efer to (cid:41)ote 15(cid:11) (cid:86)Leases(cid:87) of the notes to consolidated financial statements for
information about our lease obligations and the related timing of the e(cid:77)pected payments.
Employee benefit plan obligations(cid:25) (cid:45)efer to (cid:41)ote 13(cid:11) (cid:86)(cid:43)ension and Other (cid:43)ost(cid:12)(cid:45)etirement (cid:43)lans(cid:87) of the notes to
consolidated financial statements for additional information about our employee benefit plan obligations and the
related timing of the e(cid:77)pected payments.
Capital e(cid:77)penditures(cid:25) As of (cid:37)une 30(cid:11) 2022(cid:11) (cid:76)e have $223 million in committed capital e(cid:77)penditures for the fiscal year
2023.
Other purchase obligations(cid:25) Amcor has other purchase obligations(cid:11) including commitments to purchase a specified
minimum amount of goods(cid:11) inclusive of ra(cid:76) materials(cid:11) utilities(cid:11) and other. (cid:47)hese obligations are legally binding and
non(cid:12)cancellable. (cid:50)here (cid:76)e are unable to determine the periods in (cid:76)hich these obligations could be payable under
these contracts(cid:11) (cid:76)e present the cash requirement in the earliest period in (cid:76)hich the minimum obligation could be
payable. (cid:47)he estimated future cash outlays are appro(cid:77)imately $1.6 billion(cid:11) $550 million(cid:11) $500 million(cid:11) $300 million(cid:11)
and $100 million in fiscal years 2023(cid:11) 2024(cid:11) 2025(cid:11) 2026(cid:11) and 2027(cid:11) respectively.
On (cid:31)ecember 15(cid:11) 2021(cid:11) (cid:76)e redeemed (cid:48).S. private placement notes of a principal amount of $275 million at maturity.
(cid:29)ff(cid:7)(cid:16)a(cid:48)a(cid:50)(cid:39)e S(cid:44)ee(cid:56) (cid:15)rra(cid:50)(cid:43)eme(cid:50)(cid:56)s
(cid:47)he notes carried an interest rate of 5.(cid:24)5(cid:4).
Other than as described under "(cid:40)aterial Cash (cid:45)equirements" as of (cid:37)une 30(cid:11) 2022(cid:11) (cid:76)e had no significant off(cid:12)balance
On (cid:37)uly 15(cid:11) 2021(cid:11) (cid:76)e redeemed (cid:48).S. dollar notes (cid:76)ith a principal amount of $400 million that had a contractual
maturity of October 15(cid:11) 2021 and carried an interest rate of 4.50(cid:4).
sheet contractual obligations or other commitments.
(cid:26)i(cid:53)(cid:57)i(cid:40)i(cid:56)(cid:61) Ris(cid:47) a(cid:50)(cid:40) (cid:29)(cid:57)(cid:56)(cid:48)oo(cid:47)
Liquidity ris(cid:64) arises from the possibility that (cid:76)e might encounter difficulty in settling our debts or other(cid:76)ise meeting
our obligations related to financial liabilities. (cid:50)e manage liquidity ris(cid:64) centrally and such management involves maintaining
available funding and ensuring that (cid:76)e have access to an adequate amount of committed credit facilities. (cid:31)ue to the dynamic
nature of our business(cid:11) the aim is to maintain fle(cid:77)ibility (cid:76)ithin our funding structure through the use of ban(cid:64) overdrafts(cid:11) ban(cid:64)
loans(cid:11) corporate bonds(cid:11) unsecured notes(cid:11) and commercial paper. (cid:47)he follo(cid:76)ing guidelines are used to manage our liquidity ris(cid:64)(cid:25)
(cid:82) maintaining minimum undra(cid:76)n committed liquidity of at least $200 million that can be dra(cid:76)n at short notice(cid:26)
(cid:82)
regularly performing a comprehensive analysis of all cash inflo(cid:76)s and outflo(cid:76)s in relation to operational(cid:11) investing(cid:11)
and financing activities(cid:26)
generally using tradable instruments only in highly liquid mar(cid:64)ets(cid:26)
(cid:82)
(cid:82) maintaining a senior credit investment grade rating (cid:76)ith a reputable independent rating agency(cid:26)
(cid:82) managing credit ris(cid:64) related to financial assets(cid:26)
(cid:82) monitoring the duration of long(cid:12)term debt(cid:26)
(cid:82)
(cid:82)
only investing surplus cash (cid:76)ith ma(cid:63)or financial institutions(cid:26) and
to the e(cid:77)tent practicable(cid:11) spreading the maturity dates of long(cid:12)term debt facilities.
In the fourth quarter of fiscal year 2022(cid:11) (cid:76)e terminated our 3(cid:12)(cid:11) 4(cid:12)(cid:11) and 5(cid:12)year syndicated facility agreements. (cid:47)he three
facility agreements collectively provided $3.8 billion of credit facilities. On the same day(cid:11) (cid:76)e entered into three(cid:12) and five(cid:12)year
syndicated facility agreements that each provide a revolving credit facility of $1.(cid:24) billion(cid:11) $3.8 billion in total. (cid:47)he facilities are
unsecured and have contractual maturities in April 2025 and April 2027(cid:11) respectively. (cid:47)he agreements include customary terms
and conditions for a syndicated facility of this nature(cid:11) and the revolving tranches have t(cid:76)o 12(cid:12)month options available to
management to e(cid:77)tend the maturity date.
As of (cid:37)une 30(cid:11) 2022 and 2021(cid:11) an aggregate principal amount of $2.4 billion and $1.8 billion(cid:11) respectively(cid:11) (cid:76)as dra(cid:76)n
under commercial paper programs. (cid:35)o(cid:76)ever(cid:11) such programs are bac(cid:64)stopped by committed ban(cid:64) syndicated loan facilities (cid:76)ith
maturities in April 2025 ($1.(cid:24) billion)(cid:11) and April 2027 ($1.(cid:24) billion)(cid:11) (cid:76)ith an option to e(cid:77)tend(cid:11) under (cid:76)hich (cid:76)e had $1.4 billion
in unused capacity remaining as of (cid:37)une 30(cid:11) 2022.
3(cid:24)
40
Amcor Annual Report 2022
(cid:18)i(cid:58)i(cid:40)e(cid:50)(cid:40) (cid:30)a(cid:61)me(cid:50)(cid:56)s
(cid:17)re(cid:40)i(cid:56) Ra(cid:56)i(cid:50)(cid:43)
S(cid:44)are Re(cid:52)(cid:57)r(cid:39)(cid:44)ases
In fiscal years 2022(cid:11) 2021(cid:11) and 2020(cid:11) (cid:76)e paid $732 million(cid:11) $742 million(cid:11) and $761 million(cid:11) respectively(cid:11) in dividends.
Our capital structure and financial practices have earned us investment grade credit ratings from t(cid:76)o internationally
recogni(cid:79)ed credit rating agencies. (cid:47)hese investment grade credit ratings are important to our ability to issue debt at favorable
rates of interest(cid:11) for various terms(cid:11) and from a diverse range of mar(cid:64)ets that are highly liquid(cid:11) including European and (cid:48).S. debt
capital mar(cid:64)ets and from global financial institutions.
On August 17(cid:11) 2021(cid:11) our Board of (cid:31)irectors approved a $400 million buybac(cid:64) of ordinary shares and C(cid:35)ESS
(cid:31)epositary Instruments ("C(cid:31)Is"). In addition(cid:11) on February 1(cid:11) 2022(cid:11) our Board of (cid:31)irectors approved an additional $200 million
buybac(cid:64) of ordinary shares and C(cid:31)Is. (cid:31)uring the fiscal year ended (cid:37)une 30(cid:11) 2022(cid:11) (cid:76)e repurchased appro(cid:77)imately $600 million(cid:11)
e(cid:77)cluding transaction costs(cid:11) or 4(cid:24) million shares. (cid:47)he shares repurchased (cid:76)ere canceled upon repurchase. Additionally(cid:11) on
August 17(cid:11) 2022(cid:11) our Board of (cid:31)irectors approved a further $400 million buybac(cid:64) of ordinary shares and(cid:14)or C(cid:31)Is in the ne(cid:77)t
t(cid:76)elve months.
(cid:50)e had cash outflo(cid:76)s of $143 million(cid:11) $8 million(cid:11) and $67 million for the purchase of our shares in the open mar(cid:64)et
during fiscal years 2022(cid:11) 2021(cid:11) and 2020(cid:11) respectively(cid:11) as treasury shares to satisfy the vesting and e(cid:77)ercises of share(cid:12)based
compensation a(cid:76)ards. As of (cid:37)une 30(cid:11) 2022(cid:11) 2021(cid:11) and 2020(cid:11) (cid:76)e held treasury shares at cost of $18 million(cid:11) $2(cid:24) million(cid:11) and
$67 million(cid:11) representing 2 million(cid:11) 3 million(cid:11) and 7 million shares(cid:11) respectively.
Form 10-K
41
(cid:50)e e(cid:77)pect long(cid:12)term future funding needs to primarily relate to refinancing and servicing our outstanding financial
Critical Accounting Estimates and Judgments
liabilities maturing as outlined above and to finance our capital e(cid:77)penditure and payments for acquisitions that may be
completed. (cid:50)e e(cid:77)pect to continue to fund our long(cid:12)term business needs on the same basis as in the past(cid:11) i.e.(cid:11) partially through
the cash flo(cid:76) provided by operating activities available to the business and management of the capital of the business(cid:11) in
particular through issuance of commercial paper and debt securities on a regular basis. (cid:50)e decide on discretionary gro(cid:76)th
capital e(cid:77)penditures and acquisitions individually based on(cid:11) among other factors(cid:11) the return on investment after related
financing costs and the paybac(cid:64) period of required upfront cash investments in light of our mid(cid:12)term liquidity planning
covering a period of four years post the current fiscal year. Our long(cid:12)term access to liquidity depends on both our results of
operations and on the availability of funding in financial mar(cid:64)ets.
Our discussion and analysis of our financial condition and results of operations is based on our consolidated financial
statements(cid:11) (cid:76)hich have been prepared in accordance (cid:76)ith (cid:48).S. (cid:34)AA(cid:43). (cid:47)he preparation of these financial statements requires us
to ma(cid:64)e estimates and assumptions that affect the reported amounts of assets and liabilities and the disclosure of contingent
assets and liabilities at the date of the financial statements and the reported amounts of e(cid:77)penses during the reporting period. On
an ongoing basis(cid:11) (cid:76)e evaluate our estimates and (cid:63)udgments(cid:11) including those related to retirement benefits(cid:11) intangible assets(cid:11)
good(cid:76)ill(cid:11) and e(cid:77)pected future performance of operations. Our estimates and (cid:63)udgments are based on historical e(cid:77)perience and
various other factors that are believed to be reasonable under the circumstances. Actual results may differ from these estimates
under different assumptions or conditions.
(cid:50)e believe the follo(cid:76)ing are critical accounting estimates used in the preparation of our consolidated financial
statements.
Pension Costs
(cid:82)
(cid:82)
(cid:82)
(cid:82)
the calculation of annual pension costs and related assets and liabilities(cid:26)
valuation of intangible assets and good(cid:76)ill(cid:26)
calculation of deferred ta(cid:77)es and uncertain ta(cid:77) positions(cid:26) and
valuation of assets and liabilities held for sale.
Appro(cid:77)imately (cid:24)0(cid:4) of our principal defined benefit plans are closed to ne(cid:76) entrants and future accruals. (cid:47)he
accounting for defined benefit pension plans requires us to recogni(cid:79)e the overfunded or underfunded status of the pension plans
on our balance sheet. A substantial portion of our pension amounts relates to our defined benefit plans in the (cid:48)nited States(cid:11)
S(cid:76)it(cid:79)erland(cid:11) and the (cid:48)nited (cid:38)ingdom. (cid:41)et periodic pension cost recorded in fiscal year 2022 (cid:76)as $12 million(cid:11) compared to
pension cost of $15 million in fiscal year 2021 and $10 million in fiscal year 2020. (cid:50)e e(cid:77)pect net periodic pension cost before
the effect of income ta(cid:77)es for fiscal year 2023 to be appro(cid:77)imately $(cid:24) million.
For our sponsored plans(cid:11) the relevant accounting guidance requires that management ma(cid:64)e certain assumptions
relating to the long(cid:12)term rate of return on plan assets(cid:11) discount rates used to determine the present value of future obligations
and e(cid:77)penses(cid:11) salary inflation rates(cid:11) mortality rates(cid:11) and other assumptions. (cid:50)e believe that the accounting estimates related to
our pension plans are critical accounting estimates because they are highly susceptible to change from period to period based on
the performance of plan assets(cid:11) actuarial valuations(cid:11) mar(cid:64)et conditions(cid:11) and contracted benefit changes. (cid:47)he selection of
assumptions is based on historical trends and (cid:64)no(cid:76)n economic and mar(cid:64)et conditions at the time of valuation(cid:11) as (cid:76)ell as
independent studies of trends performed by our actuaries. (cid:35)o(cid:76)ever(cid:11) actual results may differ substantially from the estimates
that (cid:76)ere based on the critical assumptions.
(cid:47)he amount by (cid:76)hich the fair value of plan assets differs from the pro(cid:63)ected benefit obligation of a pension plan must
be recorded on the consolidated balance sheets as an asset(cid:11) in the case of an overfunded plan(cid:11) or as a liability(cid:11) in the case of an
underfunded plan. (cid:47)he gains or losses and prior service costs or credits that arise but are not recogni(cid:79)ed as components of
pension cost are recorded as a component of other comprehensive income(cid:14)(loss). (cid:43)ension plan liabilities are revalued annually(cid:11)
or (cid:76)hen an event occurs that requires remeasurement(cid:11) based on updated assumptions and information about the individuals
covered by the plan. Accumulated actuarial gains and losses in e(cid:77)cess of a 10 percent corridor and the prior service cost are
amorti(cid:79)ed on a straight(cid:12)line basis from the date recogni(cid:79)ed over the average remaining service period of active participants or
over the average life e(cid:77)pectancy for plans (cid:76)ith significant inactive participants. (cid:47)he service costs related to defined benefits are
included in operating income. (cid:47)he other components of net benefit cost are presented in the consolidated statements of income
separately from the service cost component and outside operating income.
(cid:50)e revie(cid:76) annually the discount rate used to calculate the present value of pension plan liabilities. (cid:47)he discount rate
used at each measurement date is set based on a high(cid:12)quality corporate bond yield curve(cid:11) derived based on bond universe
information sourced from reputable third(cid:12)party inde(cid:77)es(cid:11) data providers(cid:11) and rating agencies. In countries (cid:76)here there is no deep
mar(cid:64)et in corporate bonds(cid:11) (cid:76)e have used a government bond approach to set the discount rate. Additionally(cid:11) the e(cid:77)pected long(cid:12)
term rate of return on plan assets is derived for each benefit plan by considering the e(cid:77)pected future long(cid:12)term return
assumption for each individual asset class. A single long(cid:12)term return assumption is then derived for each plan based upon the
plan(cid:6)s target asset allocation.
41
Amcor Annual Report 2022
42
(cid:50)e e(cid:77)pect long(cid:12)term future funding needs to primarily relate to refinancing and servicing our outstanding financial
Critical Accounting Estimates and Judgments
41
Form 10-K
(cid:23)2
liabilities maturing as outlined above and to finance our capital e(cid:77)penditure and payments for acquisitions that may be
completed. (cid:50)e e(cid:77)pect to continue to fund our long(cid:12)term business needs on the same basis as in the past(cid:11) i.e.(cid:11) partially through
the cash flo(cid:76) provided by operating activities available to the business and management of the capital of the business(cid:11) in
particular through issuance of commercial paper and debt securities on a regular basis. (cid:50)e decide on discretionary gro(cid:76)th
capital e(cid:77)penditures and acquisitions individually based on(cid:11) among other factors(cid:11) the return on investment after related
financing costs and the paybac(cid:64) period of required upfront cash investments in light of our mid(cid:12)term liquidity planning
covering a period of four years post the current fiscal year. Our long(cid:12)term access to liquidity depends on both our results of
operations and on the availability of funding in financial mar(cid:64)ets.
Our discussion and analysis of our financial condition and results of operations is based on our consolidated financial
statements(cid:11) (cid:76)hich have been prepared in accordance (cid:76)ith (cid:48).S. (cid:34)AA(cid:43). (cid:47)he preparation of these financial statements requires us
to ma(cid:64)e estimates and assumptions that affect the reported amounts of assets and liabilities and the disclosure of contingent
assets and liabilities at the date of the financial statements and the reported amounts of e(cid:77)penses during the reporting period. On
an ongoing basis(cid:11) (cid:76)e evaluate our estimates and (cid:63)udgments(cid:11) including those related to retirement benefits(cid:11) intangible assets(cid:11)
good(cid:76)ill(cid:11) and e(cid:77)pected future performance of operations. Our estimates and (cid:63)udgments are based on historical e(cid:77)perience and
various other factors that are believed to be reasonable under the circumstances. Actual results may differ from these estimates
under different assumptions or conditions.
(cid:50)e believe the follo(cid:76)ing are critical accounting estimates used in the preparation of our consolidated financial
statements.
(cid:82)
(cid:82)
(cid:82)
(cid:82)
the calculation of annual pension costs and related assets and liabilities(cid:26)
valuation of intangible assets and good(cid:76)ill(cid:26)
calculation of deferred ta(cid:77)es and uncertain ta(cid:77) positions(cid:26) and
valuation of assets and liabilities held for sale.
Pension Costs
Appro(cid:77)imately (cid:24)0(cid:4) of our principal defined benefit plans are closed to ne(cid:76) entrants and future accruals. (cid:47)he
accounting for defined benefit pension plans requires us to recogni(cid:79)e the overfunded or underfunded status of the pension plans
on our balance sheet. A substantial portion of our pension amounts relates to our defined benefit plans in the (cid:48)nited States(cid:11)
S(cid:76)it(cid:79)erland(cid:11) and the (cid:48)nited (cid:38)ingdom. (cid:41)et periodic pension cost recorded in fiscal year 2022 (cid:76)as $12 million(cid:11) compared to
pension cost of $15 million in fiscal year 2021 and $10 million in fiscal year 2020. (cid:50)e e(cid:77)pect net periodic pension cost before
the effect of income ta(cid:77)es for fiscal year 2023 to be appro(cid:77)imately $(cid:24) million.
For our sponsored plans(cid:11) the relevant accounting guidance requires that management ma(cid:64)e certain assumptions
relating to the long(cid:12)term rate of return on plan assets(cid:11) discount rates used to determine the present value of future obligations
and e(cid:77)penses(cid:11) salary inflation rates(cid:11) mortality rates(cid:11) and other assumptions. (cid:50)e believe that the accounting estimates related to
our pension plans are critical accounting estimates because they are highly susceptible to change from period to period based on
the performance of plan assets(cid:11) actuarial valuations(cid:11) mar(cid:64)et conditions(cid:11) and contracted benefit changes. (cid:47)he selection of
assumptions is based on historical trends and (cid:64)no(cid:76)n economic and mar(cid:64)et conditions at the time of valuation(cid:11) as (cid:76)ell as
independent studies of trends performed by our actuaries. (cid:35)o(cid:76)ever(cid:11) actual results may differ substantially from the estimates
that (cid:76)ere based on the critical assumptions.
(cid:47)he amount by (cid:76)hich the fair value of plan assets differs from the pro(cid:63)ected benefit obligation of a pension plan must
be recorded on the consolidated balance sheets as an asset(cid:11) in the case of an overfunded plan(cid:11) or as a liability(cid:11) in the case of an
underfunded plan. (cid:47)he gains or losses and prior service costs or credits that arise but are not recogni(cid:79)ed as components of
pension cost are recorded as a component of other comprehensive income(cid:14)(loss). (cid:43)ension plan liabilities are revalued annually(cid:11)
or (cid:76)hen an event occurs that requires remeasurement(cid:11) based on updated assumptions and information about the individuals
covered by the plan. Accumulated actuarial gains and losses in e(cid:77)cess of a 10 percent corridor and the prior service cost are
amorti(cid:79)ed on a straight(cid:12)line basis from the date recogni(cid:79)ed over the average remaining service period of active participants or
over the average life e(cid:77)pectancy for plans (cid:76)ith significant inactive participants. (cid:47)he service costs related to defined benefits are
included in operating income. (cid:47)he other components of net benefit cost are presented in the consolidated statements of income
separately from the service cost component and outside operating income.
(cid:50)e revie(cid:76) annually the discount rate used to calculate the present value of pension plan liabilities. (cid:47)he discount rate
used at each measurement date is set based on a high(cid:12)quality corporate bond yield curve(cid:11) derived based on bond universe
information sourced from reputable third(cid:12)party inde(cid:77)es(cid:11) data providers(cid:11) and rating agencies. In countries (cid:76)here there is no deep
mar(cid:64)et in corporate bonds(cid:11) (cid:76)e have used a government bond approach to set the discount rate. Additionally(cid:11) the e(cid:77)pected long(cid:12)
term rate of return on plan assets is derived for each benefit plan by considering the e(cid:77)pected future long(cid:12)term return
assumption for each individual asset class. A single long(cid:12)term return assumption is then derived for each plan based upon the
plan(cid:6)s target asset allocation.
41
42
Amcor Annual Report 2022
the more li(cid:64)ely than not threshold based on all available evidence. Significant (cid:63)udgments and estimates(cid:11) including e(cid:77)pected
future performance of operations and ta(cid:77)able earnings and the feasibility of ta(cid:77) planning strategies(cid:11) are required in determining
future changes to ta(cid:77) la(cid:76)s or statutory ta(cid:77) rates(cid:11) (cid:76)e may need to ad(cid:63)ust valuation allo(cid:76)ances or ta(cid:77) liabilities(cid:11) (cid:76)hich could have
a material impact on our consolidated financial position and results of operations.
Valuation of Assets and Liabilities (cid:32)eld for Sale
(cid:31)isposal groups held for sale are assessed for impairment by comparing their fair values less cost to sell to their
carrying values. (cid:47)he fair values of disposal groups held for sale are estimated using accepted valuation techniques (cid:76)hich
include earnings multiples(cid:11) discounted cash flo(cid:76)s(cid:11) and indicative bids. A number of significant estimates and assumptions are
involved in the application of these techniques(cid:11) including the forecasting of sales(cid:11) e(cid:77)penses(cid:11) and a variety of other factors. (cid:50)e
consider historical e(cid:77)perience(cid:11) guidance received from third parties(cid:11) and all other information available at the time the estimates
are made to derive fair value. (cid:35)o(cid:76)ever(cid:11) the fair value that is ultimately reali(cid:79)ed upon the divestiture of a business may
significantly differ from the estimated fair value recogni(cid:79)ed in our consolidated financial statements(cid:11) especially for disposal
groups located (cid:76)ithin countries at (cid:76)ar.
(cid:38)ew Accounting Pronouncements
ne(cid:76) accounting pronouncements.
(cid:45)efer to (cid:41)ote 3(cid:11) "(cid:41)e(cid:76) Accounting (cid:34)uidance" of the notes to consolidated financial statements for information about
(cid:30)e(cid:50)sio(cid:50) (cid:15)ss(cid:57)m(cid:52)(cid:56)io(cid:50)s Se(cid:50)si(cid:56)i(cid:58)i(cid:56)(cid:61) (cid:15)(cid:50)a(cid:48)(cid:61)sis
(cid:47)he follo(cid:76)ing chart depicts the sensitivity of estimated fiscal year 2023 pension e(cid:77)pense to incremental changes in the
the need for and amount of valuation allo(cid:76)ances for deferred ta(cid:77) assets. If actual results differ from these estimates or there are
discount rate and the e(cid:77)pected long(cid:12)term rate of return on assets.
Form 10-K
43
(cid:44)otal Increase
(Decrease) to
Pension E(cid:74)pense
from Current
Assumption
(cid:44)otal Increase
(Decrease) to
Pension E(cid:74)pense
from Current
Assumption
Discount Rate
(cid:10)25 basis points
(in (cid:3) millions)
Rate of Return on Plan Assets
(in (cid:3) millions)
1 (cid:10)25 basis points
3(cid:12)(cid:22)0 percent (current assumption)
(cid:85) (cid:18)(cid:12)(cid:18)2 percent (current assumption)
(cid:12)25 basis points
(1) (cid:12)25 basis points
(3)
(cid:85)
3
Intangible Assets and (cid:31)oodwill
(cid:34)ood(cid:76)ill represents the e(cid:77)cess of the aggregate purchase price over the fair value of net assets acquired(cid:11) including
intangible assets. (cid:34)ood(cid:76)ill is not amorti(cid:79)ed but is instead tested annually or (cid:76)hen events and circumstances indicate an
impairment may have occurred. Our reporting units each contain good(cid:76)ill that is assessed for potential impairment. All
good(cid:76)ill is assigned to a reporting unit(cid:11) (cid:76)hich is defined as an operating segment(cid:11) at the time of each acquisition based on the
relative fair value of the reporting unit. (cid:50)e have si(cid:77) reporting units(cid:11) of (cid:76)hich five are included in our Fle(cid:77)ibles Segment. (cid:47)he
other reporting unit that is also a reportable segment is (cid:45)igid (cid:43)ac(cid:64)aging.
(cid:34)ood(cid:76)ill for our reporting units is revie(cid:76)ed for impairment annually in the fourth quarter of each year or (cid:76)henever
events and circumstances indicate an impairment may have occurred during the year. (cid:50)hen the carrying value of a reporting
unit e(cid:77)ceeds its fair value(cid:11) (cid:76)e recogni(cid:79)e an impairment loss equal to the difference bet(cid:76)een the carrying value and estimated
fair value of the reporting unit(cid:11) ad(cid:63)usted for any ta(cid:77) benefits(cid:11) limited to the amount of the carrying value of good(cid:76)ill.
In performing our impairment analysis(cid:11) (cid:76)e may elect to first assess qualitative factors to determine (cid:76)hether a
quantitative test is necessary. If (cid:76)e determine that a quantitative test is necessary(cid:11) or elect to perform a quantitative test instead
of the qualitative test(cid:11) (cid:76)e derive an estimate of fair values for each of our reporting units using income approaches. (cid:47)he most
significant assumptions used in the determination of the estimated fair value of the reporting units are revenue gro(cid:76)th(cid:11) pro(cid:63)ected
operating income gro(cid:76)th(cid:11) terminal values(cid:11) and discount rates.
Our estimates associated (cid:76)ith the good(cid:76)ill impairment tests are considered critical due to the amount of good(cid:76)ill
recorded on our consolidated balance sheets and the (cid:63)udgment required in determining fair value amounts(cid:11) including pro(cid:63)ected
future cash flo(cid:76)s. (cid:37)udgment is used in assessing (cid:76)hether good(cid:76)ill should be tested more frequently for impairment than
annually. Factors such as a significant decrease in e(cid:77)pected net earnings(cid:11) adverse equity mar(cid:64)et conditions(cid:11) and other e(cid:77)ternal
events(cid:11) such as the CO(cid:49)I(cid:31)(cid:12)1(cid:24) pandemic and the (cid:45)ussia(cid:12)(cid:48)(cid:64)raine conflict(cid:11) may result in the need for more frequent assessments.
Intangible assets consist primarily of purchased customer relationships(cid:11) technology(cid:11) trademar(cid:64)s(cid:11) and soft(cid:76)are and are
amorti(cid:79)ed using the straight(cid:12)line method over their estimated useful lives(cid:11) (cid:76)hich range from one to 20 years. (cid:50)e revie(cid:76) these
intangible assets for impairment as changes in circumstances or the occurrence of events suggest that the remaining value is not
recoverable. (cid:47)he test for impairment requires us to ma(cid:64)e estimates about fair value(cid:11) most of (cid:76)hich are based on pro(cid:63)ected future
cash flo(cid:76)s and discount rates. (cid:47)hese estimates and pro(cid:63)ections require (cid:63)udgments as to future events(cid:11) conditions(cid:11) and amounts
of future cash flo(cid:76)s.
Deferred (cid:44)a(cid:74)es and (cid:45)ncertain (cid:44)a(cid:74) Positions
(cid:50)e deal (cid:76)ith uncertainties and (cid:63)udgments in the application of comple(cid:77) ta(cid:77) regulations in a multitude of (cid:63)urisdictions.
(cid:47)he determination of uncertain ta(cid:77) positions is based on an evaluation of (cid:76)hether the (cid:76)eight of available evidence indicates that
it is more li(cid:64)ely than not that the position ta(cid:64)en or e(cid:77)pected to be ta(cid:64)en in the ta(cid:77) return (cid:76)ill be sustained on ta(cid:77) audit(cid:11) including
resolution of related appeals or litigation processes(cid:11) if any. (cid:47)he recogni(cid:79)ed ta(cid:77) benefits are measured as the largest benefit of
having a more li(cid:64)ely than not li(cid:64)elihood of being sustained upon settlement. Significant estimates are required in determining
such uncertain ta(cid:77) positions and related income ta(cid:77) e(cid:77)pense and benefit. Additionally(cid:11) (cid:76)e are also required to assess the
li(cid:64)elihood of recovering deferred ta(cid:77) assets against future sources of ta(cid:77)able income (cid:76)hich might result in the need for a
valuation allo(cid:76)ance on deferred ta(cid:77) assets(cid:11) including operating loss(cid:11) capital loss(cid:11) and ta(cid:77) credit carryfor(cid:76)ards if (cid:76)e do not reach
43
Amcor Annual Report 2022
44
43
Form 10-K
44
the more li(cid:64)ely than not threshold based on all available evidence. Significant (cid:63)udgments and estimates(cid:11) including e(cid:77)pected
future performance of operations and ta(cid:77)able earnings and the feasibility of ta(cid:77) planning strategies(cid:11) are required in determining
the need for and amount of valuation allo(cid:76)ances for deferred ta(cid:77) assets. If actual results differ from these estimates or there are
future changes to ta(cid:77) la(cid:76)s or statutory ta(cid:77) rates(cid:11) (cid:76)e may need to ad(cid:63)ust valuation allo(cid:76)ances or ta(cid:77) liabilities(cid:11) (cid:76)hich could have
a material impact on our consolidated financial position and results of operations.
Valuation of Assets and Liabilities (cid:32)eld for Sale
(cid:31)isposal groups held for sale are assessed for impairment by comparing their fair values less cost to sell to their
carrying values. (cid:47)he fair values of disposal groups held for sale are estimated using accepted valuation techniques (cid:76)hich
include earnings multiples(cid:11) discounted cash flo(cid:76)s(cid:11) and indicative bids. A number of significant estimates and assumptions are
involved in the application of these techniques(cid:11) including the forecasting of sales(cid:11) e(cid:77)penses(cid:11) and a variety of other factors. (cid:50)e
consider historical e(cid:77)perience(cid:11) guidance received from third parties(cid:11) and all other information available at the time the estimates
are made to derive fair value. (cid:35)o(cid:76)ever(cid:11) the fair value that is ultimately reali(cid:79)ed upon the divestiture of a business may
significantly differ from the estimated fair value recogni(cid:79)ed in our consolidated financial statements(cid:11) especially for disposal
groups located (cid:76)ithin countries at (cid:76)ar.
(cid:38)ew Accounting Pronouncements
(cid:45)efer to (cid:41)ote 3(cid:11) "(cid:41)e(cid:76) Accounting (cid:34)uidance" of the notes to consolidated financial statements for information about
ne(cid:76) accounting pronouncements.
(cid:30)e(cid:50)sio(cid:50) (cid:15)ss(cid:57)m(cid:52)(cid:56)io(cid:50)s Se(cid:50)si(cid:56)i(cid:58)i(cid:56)(cid:61) (cid:15)(cid:50)a(cid:48)(cid:61)sis
(cid:47)he follo(cid:76)ing chart depicts the sensitivity of estimated fiscal year 2023 pension e(cid:77)pense to incremental changes in the
discount rate and the e(cid:77)pected long(cid:12)term rate of return on assets.
(cid:44)otal Increase
(Decrease) to
Pension E(cid:74)pense
from Current
Assumption
(cid:44)otal Increase
(Decrease) to
Pension E(cid:74)pense
from Current
Assumption
(3)
(cid:85)
3
(in (cid:3) millions)
Rate of Return on Plan Assets
(in (cid:3) millions)
3(cid:12)(cid:22)0 percent (current assumption)
(cid:85) (cid:18)(cid:12)(cid:18)2 percent (current assumption)
1 (cid:10)25 basis points
(1) (cid:12)25 basis points
Discount Rate
(cid:10)25 basis points
(cid:12)25 basis points
Intangible Assets and (cid:31)oodwill
(cid:34)ood(cid:76)ill represents the e(cid:77)cess of the aggregate purchase price over the fair value of net assets acquired(cid:11) including
intangible assets. (cid:34)ood(cid:76)ill is not amorti(cid:79)ed but is instead tested annually or (cid:76)hen events and circumstances indicate an
impairment may have occurred. Our reporting units each contain good(cid:76)ill that is assessed for potential impairment. All
good(cid:76)ill is assigned to a reporting unit(cid:11) (cid:76)hich is defined as an operating segment(cid:11) at the time of each acquisition based on the
relative fair value of the reporting unit. (cid:50)e have si(cid:77) reporting units(cid:11) of (cid:76)hich five are included in our Fle(cid:77)ibles Segment. (cid:47)he
other reporting unit that is also a reportable segment is (cid:45)igid (cid:43)ac(cid:64)aging.
(cid:34)ood(cid:76)ill for our reporting units is revie(cid:76)ed for impairment annually in the fourth quarter of each year or (cid:76)henever
events and circumstances indicate an impairment may have occurred during the year. (cid:50)hen the carrying value of a reporting
unit e(cid:77)ceeds its fair value(cid:11) (cid:76)e recogni(cid:79)e an impairment loss equal to the difference bet(cid:76)een the carrying value and estimated
fair value of the reporting unit(cid:11) ad(cid:63)usted for any ta(cid:77) benefits(cid:11) limited to the amount of the carrying value of good(cid:76)ill.
In performing our impairment analysis(cid:11) (cid:76)e may elect to first assess qualitative factors to determine (cid:76)hether a
quantitative test is necessary. If (cid:76)e determine that a quantitative test is necessary(cid:11) or elect to perform a quantitative test instead
of the qualitative test(cid:11) (cid:76)e derive an estimate of fair values for each of our reporting units using income approaches. (cid:47)he most
significant assumptions used in the determination of the estimated fair value of the reporting units are revenue gro(cid:76)th(cid:11) pro(cid:63)ected
operating income gro(cid:76)th(cid:11) terminal values(cid:11) and discount rates.
Our estimates associated (cid:76)ith the good(cid:76)ill impairment tests are considered critical due to the amount of good(cid:76)ill
recorded on our consolidated balance sheets and the (cid:63)udgment required in determining fair value amounts(cid:11) including pro(cid:63)ected
future cash flo(cid:76)s. (cid:37)udgment is used in assessing (cid:76)hether good(cid:76)ill should be tested more frequently for impairment than
annually. Factors such as a significant decrease in e(cid:77)pected net earnings(cid:11) adverse equity mar(cid:64)et conditions(cid:11) and other e(cid:77)ternal
events(cid:11) such as the CO(cid:49)I(cid:31)(cid:12)1(cid:24) pandemic and the (cid:45)ussia(cid:12)(cid:48)(cid:64)raine conflict(cid:11) may result in the need for more frequent assessments.
Intangible assets consist primarily of purchased customer relationships(cid:11) technology(cid:11) trademar(cid:64)s(cid:11) and soft(cid:76)are and are
amorti(cid:79)ed using the straight(cid:12)line method over their estimated useful lives(cid:11) (cid:76)hich range from one to 20 years. (cid:50)e revie(cid:76) these
intangible assets for impairment as changes in circumstances or the occurrence of events suggest that the remaining value is not
recoverable. (cid:47)he test for impairment requires us to ma(cid:64)e estimates about fair value(cid:11) most of (cid:76)hich are based on pro(cid:63)ected future
cash flo(cid:76)s and discount rates. (cid:47)hese estimates and pro(cid:63)ections require (cid:63)udgments as to future events(cid:11) conditions(cid:11) and amounts
of future cash flo(cid:76)s.
Deferred (cid:44)a(cid:74)es and (cid:45)ncertain (cid:44)a(cid:74) Positions
(cid:50)e deal (cid:76)ith uncertainties and (cid:63)udgments in the application of comple(cid:77) ta(cid:77) regulations in a multitude of (cid:63)urisdictions.
(cid:47)he determination of uncertain ta(cid:77) positions is based on an evaluation of (cid:76)hether the (cid:76)eight of available evidence indicates that
it is more li(cid:64)ely than not that the position ta(cid:64)en or e(cid:77)pected to be ta(cid:64)en in the ta(cid:77) return (cid:76)ill be sustained on ta(cid:77) audit(cid:11) including
resolution of related appeals or litigation processes(cid:11) if any. (cid:47)he recogni(cid:79)ed ta(cid:77) benefits are measured as the largest benefit of
having a more li(cid:64)ely than not li(cid:64)elihood of being sustained upon settlement. Significant estimates are required in determining
such uncertain ta(cid:77) positions and related income ta(cid:77) e(cid:77)pense and benefit. Additionally(cid:11) (cid:76)e are also required to assess the
li(cid:64)elihood of recovering deferred ta(cid:77) assets against future sources of ta(cid:77)able income (cid:76)hich might result in the need for a
valuation allo(cid:76)ance on deferred ta(cid:77) assets(cid:11) including operating loss(cid:11) capital loss(cid:11) and ta(cid:77) credit carryfor(cid:76)ards if (cid:76)e do not reach
43
44
Amcor Annual Report 2022
Form 10-K
45
Item (cid:21)A(cid:12) - Quantitative and Qualitative Disclosures About (cid:37)ar(cid:61)et Ris(cid:61)
(cid:29)(cid:58)er(cid:58)iew
A 1(cid:4) increase on average prices for resins(cid:11) film(cid:11) aluminum(cid:11) and liquids(cid:11) not passed on to the customer by (cid:76)ay of a
price ad(cid:63)ustment(cid:11) (cid:76)ould have resulted in an increase in cost of sales and hence an adverse impact on income from continuing
operations before income ta(cid:77)es and equity in income (loss) of affiliated companies for fiscal years 2022 and 2021 of
$74 million and $58 million(cid:11) respectively.
(cid:17)re(cid:40)i(cid:56) Ris(cid:47)
Credit ris(cid:64) refers to the ris(cid:64) that a counterparty (cid:76)ill default on its contractual obligations(cid:11) resulting in financial loss.
(cid:50)e are e(cid:77)posed to credit ris(cid:64) arising from financing activities including deposits (cid:76)ith ban(cid:64)s and financial institutions(cid:11) foreign
e(cid:77)change transactions and other financial instruments(cid:11) as (cid:76)ell as from over(cid:12)the(cid:12)counter ra(cid:76) material and commodity related
derivative instruments.
(cid:50)e manage our credit ris(cid:64) from balances (cid:76)ith financial institutions through our counterparty ris(cid:64) policy(cid:11) (cid:76)hich
provide guidelines on setting limits to minimi(cid:79)e the concentration of ris(cid:64)s and therefore mitigating financial loss through
potential counterparty failure and on dealing and settlement procedures. (cid:47)he investment of surplus funds is made only (cid:76)ith
approved counterparties and (cid:76)ithin credit limits assigned to each specific counterparty. Financial derivative instruments can
only be entered into (cid:76)ith high credit quality approved financial institutions. As of (cid:37)une 30(cid:11) 2022 and 2021(cid:11) (cid:76)e did not have a
significant concentration of credit ris(cid:64) in relation to derivatives entered into in accordance (cid:76)ith our hedging and ris(cid:64)
management activities.
Our activities e(cid:77)pose us to a variety of mar(cid:64)et ris(cid:64)s and financial ris(cid:64)s. Our overall ris(cid:64) management program see(cid:64)s to
minimi(cid:79)e potential adverse effects of these ris(cid:64)s on Amcor(cid:6)s financial performance. From time to time(cid:11) (cid:76)e enter into various
derivative financial instruments(cid:11) such as foreign e(cid:77)change contracts(cid:11) commodity fi(cid:77)ed price s(cid:76)aps (on behalf of customers)(cid:11)
and interest rate s(cid:76)aps to manage these ris(cid:64)s. Our hedging activities are conducted on a centrali(cid:79)ed basis through standard
operating procedures and delegated authorities(cid:11) (cid:76)hich provide guidelines for control(cid:11) counterparty ris(cid:64)(cid:11) and ongoing reporting.
(cid:47)hese derivative instruments are designed to reduce the economic ris(cid:64) associated (cid:76)ith movements in foreign e(cid:77)change rates(cid:11)
ra(cid:76) material prices(cid:11) and to fi(cid:77)ed and variable interest rates(cid:11) but may not have been designated or qualify for hedge accounting
under (cid:48).S. (cid:34)AA(cid:43) and hence may increase income statement volatility. (cid:35)o(cid:76)ever(cid:11) (cid:76)e do not trade in derivative financial
instruments for speculative purposes. In addition(cid:11) (cid:76)e may enter into loan agreements in currencies other than the respective
legal entity(cid:6)s functional currency to economically hedge foreign e(cid:77)change ris(cid:64) in net investments in our non(cid:12)(cid:48).S. subsidiaries(cid:11)
(cid:76)hich do not qualify for hedge accounting under (cid:48).S. (cid:34)AA(cid:43) and hence may increase income statement volatility.
(cid:47)here have been no material changes in the ris(cid:64)s described belo(cid:76)(cid:11) other than increased volatility in connection (cid:76)ith
the (cid:45)ussia(cid:12)(cid:48)(cid:64)raine conflict and the CO(cid:49)I(cid:31)(cid:12)1(cid:24) pandemic(cid:11) for fiscal years 2022 and 2021(cid:11) related to interest rate ris(cid:64)(cid:11) foreign
e(cid:77)change ris(cid:64)(cid:11) ra(cid:76) material and commodity price ris(cid:64)(cid:11) and credit ris(cid:64).
(cid:23)(cid:50)(cid:56)eres(cid:56) Ra(cid:56)e Ris(cid:47)
Our policy is to manage e(cid:77)posure to interest rate ris(cid:64) by maintaining a mi(cid:77)ture of fi(cid:77)ed(cid:12)rate and variable(cid:12)rate debt(cid:11)
monitoring global interest rates and(cid:11) (cid:76)here appropriate(cid:11) hedging floating interest rate e(cid:77)posure or debt at fi(cid:77)ed interest rates
through the use of various interest rate derivative instruments including(cid:11) but not limited to(cid:11) interest rate s(cid:76)aps(cid:11) cross(cid:12)currency
interest rate s(cid:76)aps(cid:11) and interest rate loc(cid:64)s.
An increase of 1(cid:4) in the floating rate on the relevant interest rate yield curve applicable to both derivative and non(cid:12)
derivative instruments denominated in (cid:48).S. dollars and Euros(cid:11) the currencies (cid:76)ith the largest interest rate sensitivity(cid:11)
outstanding as of (cid:37)une 30(cid:11) 2022(cid:11) (cid:76)ould have resulted in an adverse impact on income from continuing operations before income
ta(cid:77)es and equity in income(cid:14)(loss) of affiliated companies of $2(cid:24) million e(cid:77)pense for the fiscal year ended (cid:37)une 30(cid:11) 2022.
(cid:20)orei(cid:43)(cid:50) (cid:19)x(cid:39)(cid:44)a(cid:50)(cid:43)e Ris(cid:47)
(cid:50)e operate in over 40 countries across the (cid:76)orld and(cid:11) as a result(cid:11) (cid:76)e are e(cid:77)posed to movements in foreign currency
e(cid:77)change rates.
For the year ended (cid:37)une 30(cid:11) 2022(cid:11) a hypothetical but reasonably possible adverse change of 1(cid:4) in the underlying
average foreign currency e(cid:77)change rate for the Euro (cid:76)ould have resulted in an adverse impact on our net sales of $25 million.
(cid:31)uring fiscal years 2022 and 2021(cid:11) 4(cid:24)(cid:4) and 48(cid:4) of our net sales(cid:11) respectively(cid:11) (cid:76)ere effectively generated in (cid:48).S.
dollar functional currency entities. (cid:31)uring fiscal years 2022 and 2021(cid:11) 17(cid:4) and 18(cid:4) of net sales(cid:11) respectively(cid:11) (cid:76)ere generated
in Euro functional currency entities (cid:76)ith the remaining 34(cid:4) and 34(cid:4) of net sales(cid:11) respectively(cid:11) being generated in entities (cid:76)ith
functional currencies other than (cid:48).S. dollars and Euros. (cid:47)he impact of translating Euro and other non(cid:12)(cid:48).S. dollar net sales and
operating e(cid:77)penses into (cid:48).S. dollar for reporting purposes (cid:76)ill vary depending on the movement of those currencies from
period to period.
Raw (cid:27)a(cid:56)eria(cid:48) a(cid:50)(cid:40) (cid:17)ommo(cid:40)i(cid:56)(cid:61) (cid:30)ri(cid:39)e Ris(cid:47)
(cid:47)he primary ra(cid:76) materials for our products are resins(cid:11) film(cid:11) aluminum(cid:11) and chemicals. (cid:50)e have mar(cid:64)et ris(cid:64) primarily
in connection (cid:76)ith the pricing of our products and are e(cid:77)posed to commodity price ris(cid:64) from a number of commodities and
certain other ra(cid:76) materials and energy price ris(cid:64).
Changes in prices of our (cid:64)ey ra(cid:76) materials and commodities(cid:11) including resins(cid:11) film(cid:11) aluminum(cid:11) in(cid:64)s(cid:11) solvents(cid:11)
adhesives and liquids(cid:11) and other ra(cid:76) materials(cid:11) may result in a temporary or permanent reduction in income before income ta(cid:77)es
and equity in income(cid:14)(loss) of affiliated companies depending on the level of recovery by material type. (cid:47)he level of recovery
depends both on the type of material and the mar(cid:64)et in (cid:76)hich (cid:76)e operate. Across our business(cid:11) (cid:76)e have a number of contractual
provisions that allo(cid:76) for passing on of ra(cid:76) material price fluctuations to customers (cid:76)ithin predefined periods.
45
Amcor Annual Report 2022
46
45
Form 10-K
46
A 1(cid:4) increase on average prices for resins(cid:11) film(cid:11) aluminum(cid:11) and liquids(cid:11) not passed on to the customer by (cid:76)ay of a
price ad(cid:63)ustment(cid:11) (cid:76)ould have resulted in an increase in cost of sales and hence an adverse impact on income from continuing
operations before income ta(cid:77)es and equity in income (loss) of affiliated companies for fiscal years 2022 and 2021 of
$74 million and $58 million(cid:11) respectively.
(cid:17)re(cid:40)i(cid:56) Ris(cid:47)
Credit ris(cid:64) refers to the ris(cid:64) that a counterparty (cid:76)ill default on its contractual obligations(cid:11) resulting in financial loss.
(cid:50)e are e(cid:77)posed to credit ris(cid:64) arising from financing activities including deposits (cid:76)ith ban(cid:64)s and financial institutions(cid:11) foreign
e(cid:77)change transactions and other financial instruments(cid:11) as (cid:76)ell as from over(cid:12)the(cid:12)counter ra(cid:76) material and commodity related
derivative instruments.
(cid:50)e manage our credit ris(cid:64) from balances (cid:76)ith financial institutions through our counterparty ris(cid:64) policy(cid:11) (cid:76)hich
provide guidelines on setting limits to minimi(cid:79)e the concentration of ris(cid:64)s and therefore mitigating financial loss through
potential counterparty failure and on dealing and settlement procedures. (cid:47)he investment of surplus funds is made only (cid:76)ith
approved counterparties and (cid:76)ithin credit limits assigned to each specific counterparty. Financial derivative instruments can
only be entered into (cid:76)ith high credit quality approved financial institutions. As of (cid:37)une 30(cid:11) 2022 and 2021(cid:11) (cid:76)e did not have a
significant concentration of credit ris(cid:64) in relation to derivatives entered into in accordance (cid:76)ith our hedging and ris(cid:64)
management activities.
Item (cid:21)A(cid:12) - Quantitative and Qualitative Disclosures About (cid:37)ar(cid:61)et Ris(cid:61)
(cid:29)(cid:58)er(cid:58)iew
Our activities e(cid:77)pose us to a variety of mar(cid:64)et ris(cid:64)s and financial ris(cid:64)s. Our overall ris(cid:64) management program see(cid:64)s to
minimi(cid:79)e potential adverse effects of these ris(cid:64)s on Amcor(cid:6)s financial performance. From time to time(cid:11) (cid:76)e enter into various
derivative financial instruments(cid:11) such as foreign e(cid:77)change contracts(cid:11) commodity fi(cid:77)ed price s(cid:76)aps (on behalf of customers)(cid:11)
and interest rate s(cid:76)aps to manage these ris(cid:64)s. Our hedging activities are conducted on a centrali(cid:79)ed basis through standard
operating procedures and delegated authorities(cid:11) (cid:76)hich provide guidelines for control(cid:11) counterparty ris(cid:64)(cid:11) and ongoing reporting.
(cid:47)hese derivative instruments are designed to reduce the economic ris(cid:64) associated (cid:76)ith movements in foreign e(cid:77)change rates(cid:11)
ra(cid:76) material prices(cid:11) and to fi(cid:77)ed and variable interest rates(cid:11) but may not have been designated or qualify for hedge accounting
under (cid:48).S. (cid:34)AA(cid:43) and hence may increase income statement volatility. (cid:35)o(cid:76)ever(cid:11) (cid:76)e do not trade in derivative financial
instruments for speculative purposes. In addition(cid:11) (cid:76)e may enter into loan agreements in currencies other than the respective
legal entity(cid:6)s functional currency to economically hedge foreign e(cid:77)change ris(cid:64) in net investments in our non(cid:12)(cid:48).S. subsidiaries(cid:11)
(cid:76)hich do not qualify for hedge accounting under (cid:48).S. (cid:34)AA(cid:43) and hence may increase income statement volatility.
(cid:47)here have been no material changes in the ris(cid:64)s described belo(cid:76)(cid:11) other than increased volatility in connection (cid:76)ith
the (cid:45)ussia(cid:12)(cid:48)(cid:64)raine conflict and the CO(cid:49)I(cid:31)(cid:12)1(cid:24) pandemic(cid:11) for fiscal years 2022 and 2021(cid:11) related to interest rate ris(cid:64)(cid:11) foreign
e(cid:77)change ris(cid:64)(cid:11) ra(cid:76) material and commodity price ris(cid:64)(cid:11) and credit ris(cid:64).
(cid:23)(cid:50)(cid:56)eres(cid:56) Ra(cid:56)e Ris(cid:47)
Our policy is to manage e(cid:77)posure to interest rate ris(cid:64) by maintaining a mi(cid:77)ture of fi(cid:77)ed(cid:12)rate and variable(cid:12)rate debt(cid:11)
monitoring global interest rates and(cid:11) (cid:76)here appropriate(cid:11) hedging floating interest rate e(cid:77)posure or debt at fi(cid:77)ed interest rates
through the use of various interest rate derivative instruments including(cid:11) but not limited to(cid:11) interest rate s(cid:76)aps(cid:11) cross(cid:12)currency
interest rate s(cid:76)aps(cid:11) and interest rate loc(cid:64)s.
An increase of 1(cid:4) in the floating rate on the relevant interest rate yield curve applicable to both derivative and non(cid:12)
derivative instruments denominated in (cid:48).S. dollars and Euros(cid:11) the currencies (cid:76)ith the largest interest rate sensitivity(cid:11)
outstanding as of (cid:37)une 30(cid:11) 2022(cid:11) (cid:76)ould have resulted in an adverse impact on income from continuing operations before income
ta(cid:77)es and equity in income(cid:14)(loss) of affiliated companies of $2(cid:24) million e(cid:77)pense for the fiscal year ended (cid:37)une 30(cid:11) 2022.
(cid:20)orei(cid:43)(cid:50) (cid:19)x(cid:39)(cid:44)a(cid:50)(cid:43)e Ris(cid:47)
e(cid:77)change rates.
(cid:50)e operate in over 40 countries across the (cid:76)orld and(cid:11) as a result(cid:11) (cid:76)e are e(cid:77)posed to movements in foreign currency
For the year ended (cid:37)une 30(cid:11) 2022(cid:11) a hypothetical but reasonably possible adverse change of 1(cid:4) in the underlying
average foreign currency e(cid:77)change rate for the Euro (cid:76)ould have resulted in an adverse impact on our net sales of $25 million.
(cid:31)uring fiscal years 2022 and 2021(cid:11) 4(cid:24)(cid:4) and 48(cid:4) of our net sales(cid:11) respectively(cid:11) (cid:76)ere effectively generated in (cid:48).S.
dollar functional currency entities. (cid:31)uring fiscal years 2022 and 2021(cid:11) 17(cid:4) and 18(cid:4) of net sales(cid:11) respectively(cid:11) (cid:76)ere generated
in Euro functional currency entities (cid:76)ith the remaining 34(cid:4) and 34(cid:4) of net sales(cid:11) respectively(cid:11) being generated in entities (cid:76)ith
functional currencies other than (cid:48).S. dollars and Euros. (cid:47)he impact of translating Euro and other non(cid:12)(cid:48).S. dollar net sales and
operating e(cid:77)penses into (cid:48).S. dollar for reporting purposes (cid:76)ill vary depending on the movement of those currencies from
period to period.
Raw (cid:27)a(cid:56)eria(cid:48) a(cid:50)(cid:40) (cid:17)ommo(cid:40)i(cid:56)(cid:61) (cid:30)ri(cid:39)e Ris(cid:47)
(cid:47)he primary ra(cid:76) materials for our products are resins(cid:11) film(cid:11) aluminum(cid:11) and chemicals. (cid:50)e have mar(cid:64)et ris(cid:64) primarily
in connection (cid:76)ith the pricing of our products and are e(cid:77)posed to commodity price ris(cid:64) from a number of commodities and
certain other ra(cid:76) materials and energy price ris(cid:64).
Changes in prices of our (cid:64)ey ra(cid:76) materials and commodities(cid:11) including resins(cid:11) film(cid:11) aluminum(cid:11) in(cid:64)s(cid:11) solvents(cid:11)
adhesives and liquids(cid:11) and other ra(cid:76) materials(cid:11) may result in a temporary or permanent reduction in income before income ta(cid:77)es
and equity in income(cid:14)(loss) of affiliated companies depending on the level of recovery by material type. (cid:47)he level of recovery
depends both on the type of material and the mar(cid:64)et in (cid:76)hich (cid:76)e operate. Across our business(cid:11) (cid:76)e have a number of contractual
provisions that allo(cid:76) for passing on of ra(cid:76) material price fluctuations to customers (cid:76)ithin predefined periods.
45
46
Amcor Annual Report 2022
Form 10-K
47
Item (cid:22)(cid:12) - Financial Statements and Supplementary Data
Report of Independent Registered Public Accounting Firm
(cid:47)o the Board of (cid:31)irectors and Shareholders of Amcor plc
(cid:29)(cid:52)i(cid:50)io(cid:50)s o(cid:50) (cid:56)(cid:44)e (cid:20)i(cid:50)a(cid:50)(cid:39)ia(cid:48) S(cid:56)a(cid:56)eme(cid:50)(cid:56)s a(cid:50)(cid:40) (cid:23)(cid:50)(cid:56)er(cid:50)a(cid:48) (cid:17)o(cid:50)(cid:56)ro(cid:48) o(cid:58)er (cid:20)i(cid:50)a(cid:50)(cid:39)ia(cid:48) Re(cid:52)or(cid:56)i(cid:50)(cid:43)
(cid:50)e have audited the accompanying consolidated balance sheets of Amcor plc and its subsidiaries (the (cid:86)Company(cid:87)) as of (cid:37)une
30(cid:11) 2022 and 2021 and the related consolidated statements of income(cid:11) comprehensive income(cid:11) equity and cash flo(cid:76)s for each of
the three years in the period ended (cid:37)une 30(cid:11) 2022(cid:11) including the related notes and financial statement schedule listed in the inde(cid:77)
appearing under Item 15(a)(2) (collectively referred to as the (cid:86)consolidated financial statements(cid:87)). (cid:50)e also have audited the
Company(cid:6)s internal control over financial reporting as of (cid:37)une 30(cid:11) 2022 based on criteria established in Internal Control -
Integrated Framework (2013) issued by the Committee of Sponsoring Organi(cid:79)ations of the (cid:47)read(cid:76)ay Commission (COSO).
In our opinion(cid:11) the consolidated financial statements referred to above present fairly(cid:11) in all material respects(cid:11) the financial
position of the Company as of (cid:37)une 30(cid:11) 2022 and 2021 and the results of its operations and its cash flo(cid:76)s for each of the three
years in the period ended (cid:37)une 30(cid:11)2022 in conformity (cid:76)ith accounting principles generally accepted in the (cid:48)nited States of
America. Also in our opinion(cid:11) the Company maintained(cid:11) in all material respects(cid:11) effective internal control over financial
reporting as of (cid:37)une 30(cid:11) 2022(cid:11) based on criteria established in Internal Control - Integrated Framework (2013) issued by the
COSO.
(cid:16)asis for (cid:29)(cid:52)i(cid:50)io(cid:50)s
(cid:47)he Company(cid:6)s management is responsible for these consolidated financial statements(cid:11) for maintaining effective internal
control over financial reporting(cid:11) and for its assessment of the effectiveness of internal control over financial reporting(cid:11) included
in (cid:40)anagement(cid:89)s (cid:45)eport on Internal Control Over Financial (cid:45)eporting appearing under Item (cid:24)A. Our responsibility is to
e(cid:77)press opinions on the Company(cid:89)s consolidated financial statements and on the Company(cid:6)s internal control over financial
reporting based on our audits. (cid:50)e are a public accounting firm registered (cid:76)ith the (cid:43)ublic Company Accounting Oversight
Board ((cid:48)nited States) ((cid:43)CAOB) and are required to be independent (cid:76)ith respect to the Company in accordance (cid:76)ith the (cid:48).S.
federal securities la(cid:76)s and the applicable rules and regulations of the Securities and E(cid:77)change Commission and the (cid:43)CAOB.
(cid:50)e conducted our audits in accordance (cid:76)ith the standards of the (cid:43)CAOB. (cid:47)hose standards require that (cid:76)e plan and perform the
audits to obtain reasonable assurance about (cid:76)hether the consolidated financial statements are free of material misstatement(cid:11)
(cid:76)hether due to error or fraud(cid:11) and (cid:76)hether effective internal control over financial reporting (cid:76)as maintained in all material
respects.
Our audits of the consolidated financial statements included performing procedures to assess the ris(cid:64)s of material misstatement
of the consolidated financial statements(cid:11) (cid:76)hether due to error or fraud(cid:11) and performing procedures that respond to those ris(cid:64)s.
Such procedures included e(cid:77)amining(cid:11) on a test basis(cid:11) evidence regarding the amounts and disclosures in the consolidated
financial statements. Our audits also included evaluating the accounting principles used and significant estimates made by
management(cid:11) as (cid:76)ell as evaluating the overall presentation of the consolidated financial statements. Our audit of internal
control over financial reporting included obtaining an understanding of internal control over financial reporting(cid:11) assessing the
ris(cid:64) that a material (cid:76)ea(cid:64)ness e(cid:77)ists(cid:11) and testing and evaluating the design and operating effectiveness of internal control based
on the assessed ris(cid:64). Our audits also included performing such other procedures as (cid:76)e considered necessary in the
circumstances. (cid:50)e believe that our audits provide a reasonable basis for our opinions.
(cid:18)efi(cid:50)i(cid:56)io(cid:50) a(cid:50)(cid:40) (cid:26)imi(cid:56)a(cid:56)io(cid:50)s of (cid:23)(cid:50)(cid:56)er(cid:50)a(cid:48) (cid:17)o(cid:50)(cid:56)ro(cid:48) o(cid:58)er (cid:20)i(cid:50)a(cid:50)(cid:39)ia(cid:48) Re(cid:52)or(cid:56)i(cid:50)(cid:43)
A company(cid:89)s internal control over financial reporting is a process designed to provide reasonable assurance regarding the
reliability of financial reporting and the preparation of financial statements for e(cid:77)ternal purposes in accordance (cid:76)ith generally
accepted accounting principles. A company(cid:89)s internal control over financial reporting includes those policies and procedures
that (i) pertain to the maintenance of records that(cid:11) in reasonable detail(cid:11) accurately and fairly reflect the transactions and
dispositions of the assets of the company(cid:26) (ii) provide reasonable assurance that transactions are recorded as necessary to permit
preparation of financial statements in accordance (cid:76)ith generally accepted accounting principles(cid:11) and that receipts and
e(cid:77)penditures of the company are being made only in accordance (cid:76)ith authori(cid:79)ations of management and directors of the
company(cid:26) and (iii) provide reasonable assurance regarding prevention or timely detection of unauthori(cid:79)ed acquisition(cid:11) use(cid:11) or
disposition of the company(cid:89)s assets that could have a material effect on the financial statements.
Because of its inherent limitations(cid:11) internal control over financial reporting may not prevent or detect misstatements. Also(cid:11)
pro(cid:63)ections of any evaluation of effectiveness to future periods are sub(cid:63)ect to the ris(cid:64) that controls may become inadequate
because of changes in conditions(cid:11) or that the degree of compliance (cid:76)ith the policies or procedures may deteriorate.
(cid:17)ri(cid:56)i(cid:39)a(cid:48) (cid:15)(cid:57)(cid:40)i(cid:56) (cid:27)a(cid:56)(cid:56)ers
(cid:47)he critical audit matter communicated belo(cid:76) is a matter arising from the current period audit of the consolidated financial
statements that (cid:76)as communicated or required to be communicated to the audit committee and that (i) relates to accounts or
disclosures that are material to the consolidated financial statements and (ii) involved our especially challenging(cid:11) sub(cid:63)ective(cid:11) or
comple(cid:77) (cid:63)udgments. (cid:47)he communication of critical audit matters does not alter in any (cid:76)ay our opinion on the consolidated
financial statements(cid:11) ta(cid:64)en as a (cid:76)hole(cid:11) and (cid:76)e are not(cid:11) by communicating the critical audit matter belo(cid:76)(cid:11) providing a separate
opinion on the critical audit matter or on the accounts or disclosures to (cid:76)hich it relates.
(cid:35)al(cid:55)at(cid:44)on o(cid:41) a(cid:53)(cid:53)et(cid:53) and l(cid:44)a(cid:37)(cid:44)l(cid:44)t(cid:44)e(cid:53) (cid:43)eld (cid:41)or (cid:53)ale
As described in (cid:41)otes 2(cid:11) 4(cid:11) and 6 to the consolidated financial statements(cid:11) during the fourth quarter of fiscal year 2022(cid:11) the
Company classified the assets and liabilities of its three manufacturing facilities in (cid:45)ussia ((cid:86)(cid:45)ussian business(cid:87)) as held for sale(cid:11)
as a result of the Company(cid:6)s decision to sell its (cid:45)ussian operations. (cid:47)he Company has recorded an impairment charge of $(cid:24)0
million as of (cid:37)une 30(cid:11) 2022(cid:11) (cid:76)ithin the line item (cid:86)(cid:45)estructuring(cid:11) impairment(cid:11) and related e(cid:77)penses(cid:11) net(cid:87) on the consolidated
statements of income. Assets and liabilities held for sale are reported at the lo(cid:76)er of their carrying value or fair value less cost
to sell. Fair value is determined based on management(cid:89)s assessment of indicative bids(cid:11) a mar(cid:64)et multiples model in (cid:76)hich a
mar(cid:64)et multiple is applied to forecasted earnings before interest(cid:11) ta(cid:77)es(cid:11) depreciation(cid:11) and amorti(cid:79)ation ((cid:86)EBI(cid:47)(cid:31)A(cid:87))(cid:11) discounted
cash flo(cid:76)s(cid:11) appraised values or management(cid:6)s estimates(cid:11) depending on the specific situation.
(cid:47)he principal considerations for our determination that performing procedures relating to the valuation of assets and liabilities
held for sale is a critical audit matter are the significant (cid:63)udgment by management (cid:76)hen developing the fair value measurement
of the (cid:45)ussian business and a high degree of auditor (cid:63)udgment(cid:11) sub(cid:63)ectivity(cid:11) and effort in performing procedures and evaluating
management(cid:89)s significant assumptions related to mar(cid:64)et multiples and forecasted EBI(cid:47)(cid:31)A.
Addressing the matter involved performing procedures and evaluating audit evidence in connection (cid:76)ith forming our overall
opinion on the consolidated financial statements. (cid:47)hese procedures included testing the effectiveness of controls relating to
management(cid:89)s valuation of assets and liabilities held for sale. (cid:47)hese procedures also included(cid:11) among others(cid:11) (i) testing
management(cid:89)s process for developing the fair value estimate(cid:26) (ii) evaluating the appropriateness of the mar(cid:64)et multiples model(cid:26)
(iii) testing the completeness and accuracy of underlying data used in the model and (iv) evaluating the reasonableness of the
significant assumptions used by management related to mar(cid:64)et multiples and forecasted EBI(cid:47)(cid:31)A. Evaluating management(cid:89)s
assumptions related to mar(cid:64)et multiples and forecasted EBI(cid:47)(cid:31)A involved evaluating (cid:76)hether the assumptions used by
management (cid:76)ere reasonable considering (i) the current and past performance of the (cid:45)ussian business(cid:26) (ii) the consistency (cid:76)ith
e(cid:77)ternal mar(cid:64)et and industry data(cid:26) and (iii) (cid:76)hether these assumptions (cid:76)ere consistent (cid:76)ith evidence obtained in other areas of
the audit.
(cid:14)s(cid:14) (cid:43)rice(cid:76)aterhouseCoopers A(cid:34)
(cid:53)urich(cid:11) S(cid:76)it(cid:79)erland
August 18(cid:11) 2022
(cid:50)e have served as the Company(cid:6)s auditor since 201(cid:24).
47
Amcor Annual Report 2022
48
47
Form 10-K
48
(cid:17)ri(cid:56)i(cid:39)a(cid:48) (cid:15)(cid:57)(cid:40)i(cid:56) (cid:27)a(cid:56)(cid:56)ers
(cid:47)he critical audit matter communicated belo(cid:76) is a matter arising from the current period audit of the consolidated financial
statements that (cid:76)as communicated or required to be communicated to the audit committee and that (i) relates to accounts or
disclosures that are material to the consolidated financial statements and (ii) involved our especially challenging(cid:11) sub(cid:63)ective(cid:11) or
comple(cid:77) (cid:63)udgments. (cid:47)he communication of critical audit matters does not alter in any (cid:76)ay our opinion on the consolidated
financial statements(cid:11) ta(cid:64)en as a (cid:76)hole(cid:11) and (cid:76)e are not(cid:11) by communicating the critical audit matter belo(cid:76)(cid:11) providing a separate
opinion on the critical audit matter or on the accounts or disclosures to (cid:76)hich it relates.
(cid:35)al(cid:55)at(cid:44)on o(cid:41) a(cid:53)(cid:53)et(cid:53) and l(cid:44)a(cid:37)(cid:44)l(cid:44)t(cid:44)e(cid:53) (cid:43)eld (cid:41)or (cid:53)ale
As described in (cid:41)otes 2(cid:11) 4(cid:11) and 6 to the consolidated financial statements(cid:11) during the fourth quarter of fiscal year 2022(cid:11) the
Company classified the assets and liabilities of its three manufacturing facilities in (cid:45)ussia ((cid:86)(cid:45)ussian business(cid:87)) as held for sale(cid:11)
as a result of the Company(cid:6)s decision to sell its (cid:45)ussian operations. (cid:47)he Company has recorded an impairment charge of $(cid:24)0
million as of (cid:37)une 30(cid:11) 2022(cid:11) (cid:76)ithin the line item (cid:86)(cid:45)estructuring(cid:11) impairment(cid:11) and related e(cid:77)penses(cid:11) net(cid:87) on the consolidated
statements of income. Assets and liabilities held for sale are reported at the lo(cid:76)er of their carrying value or fair value less cost
to sell. Fair value is determined based on management(cid:89)s assessment of indicative bids(cid:11) a mar(cid:64)et multiples model in (cid:76)hich a
mar(cid:64)et multiple is applied to forecasted earnings before interest(cid:11) ta(cid:77)es(cid:11) depreciation(cid:11) and amorti(cid:79)ation ((cid:86)EBI(cid:47)(cid:31)A(cid:87))(cid:11) discounted
cash flo(cid:76)s(cid:11) appraised values or management(cid:6)s estimates(cid:11) depending on the specific situation.
(cid:47)he principal considerations for our determination that performing procedures relating to the valuation of assets and liabilities
held for sale is a critical audit matter are the significant (cid:63)udgment by management (cid:76)hen developing the fair value measurement
of the (cid:45)ussian business and a high degree of auditor (cid:63)udgment(cid:11) sub(cid:63)ectivity(cid:11) and effort in performing procedures and evaluating
management(cid:89)s significant assumptions related to mar(cid:64)et multiples and forecasted EBI(cid:47)(cid:31)A.
Addressing the matter involved performing procedures and evaluating audit evidence in connection (cid:76)ith forming our overall
opinion on the consolidated financial statements. (cid:47)hese procedures included testing the effectiveness of controls relating to
management(cid:89)s valuation of assets and liabilities held for sale. (cid:47)hese procedures also included(cid:11) among others(cid:11) (i) testing
management(cid:89)s process for developing the fair value estimate(cid:26) (ii) evaluating the appropriateness of the mar(cid:64)et multiples model(cid:26)
(iii) testing the completeness and accuracy of underlying data used in the model and (iv) evaluating the reasonableness of the
significant assumptions used by management related to mar(cid:64)et multiples and forecasted EBI(cid:47)(cid:31)A. Evaluating management(cid:89)s
assumptions related to mar(cid:64)et multiples and forecasted EBI(cid:47)(cid:31)A involved evaluating (cid:76)hether the assumptions used by
management (cid:76)ere reasonable considering (i) the current and past performance of the (cid:45)ussian business(cid:26) (ii) the consistency (cid:76)ith
e(cid:77)ternal mar(cid:64)et and industry data(cid:26) and (iii) (cid:76)hether these assumptions (cid:76)ere consistent (cid:76)ith evidence obtained in other areas of
the audit.
(cid:14)s(cid:14) (cid:43)rice(cid:76)aterhouseCoopers A(cid:34)
(cid:53)urich(cid:11) S(cid:76)it(cid:79)erland
August 18(cid:11) 2022
(cid:50)e have served as the Company(cid:6)s auditor since 201(cid:24).
Item (cid:22)(cid:12) - Financial Statements and Supplementary Data
Report of Independent Registered Public Accounting Firm
(cid:47)o the Board of (cid:31)irectors and Shareholders of Amcor plc
(cid:29)(cid:52)i(cid:50)io(cid:50)s o(cid:50) (cid:56)(cid:44)e (cid:20)i(cid:50)a(cid:50)(cid:39)ia(cid:48) S(cid:56)a(cid:56)eme(cid:50)(cid:56)s a(cid:50)(cid:40) (cid:23)(cid:50)(cid:56)er(cid:50)a(cid:48) (cid:17)o(cid:50)(cid:56)ro(cid:48) o(cid:58)er (cid:20)i(cid:50)a(cid:50)(cid:39)ia(cid:48) Re(cid:52)or(cid:56)i(cid:50)(cid:43)
(cid:50)e have audited the accompanying consolidated balance sheets of Amcor plc and its subsidiaries (the (cid:86)Company(cid:87)) as of (cid:37)une
30(cid:11) 2022 and 2021 and the related consolidated statements of income(cid:11) comprehensive income(cid:11) equity and cash flo(cid:76)s for each of
the three years in the period ended (cid:37)une 30(cid:11) 2022(cid:11) including the related notes and financial statement schedule listed in the inde(cid:77)
appearing under Item 15(a)(2) (collectively referred to as the (cid:86)consolidated financial statements(cid:87)). (cid:50)e also have audited the
Company(cid:6)s internal control over financial reporting as of (cid:37)une 30(cid:11) 2022 based on criteria established in Internal Control -
Integrated Framework (2013) issued by the Committee of Sponsoring Organi(cid:79)ations of the (cid:47)read(cid:76)ay Commission (COSO).
In our opinion(cid:11) the consolidated financial statements referred to above present fairly(cid:11) in all material respects(cid:11) the financial
position of the Company as of (cid:37)une 30(cid:11) 2022 and 2021 and the results of its operations and its cash flo(cid:76)s for each of the three
years in the period ended (cid:37)une 30(cid:11)2022 in conformity (cid:76)ith accounting principles generally accepted in the (cid:48)nited States of
America. Also in our opinion(cid:11) the Company maintained(cid:11) in all material respects(cid:11) effective internal control over financial
reporting as of (cid:37)une 30(cid:11) 2022(cid:11) based on criteria established in Internal Control - Integrated Framework (2013) issued by the
COSO.
(cid:16)asis for (cid:29)(cid:52)i(cid:50)io(cid:50)s
(cid:47)he Company(cid:6)s management is responsible for these consolidated financial statements(cid:11) for maintaining effective internal
control over financial reporting(cid:11) and for its assessment of the effectiveness of internal control over financial reporting(cid:11) included
in (cid:40)anagement(cid:89)s (cid:45)eport on Internal Control Over Financial (cid:45)eporting appearing under Item (cid:24)A. Our responsibility is to
e(cid:77)press opinions on the Company(cid:89)s consolidated financial statements and on the Company(cid:6)s internal control over financial
reporting based on our audits. (cid:50)e are a public accounting firm registered (cid:76)ith the (cid:43)ublic Company Accounting Oversight
Board ((cid:48)nited States) ((cid:43)CAOB) and are required to be independent (cid:76)ith respect to the Company in accordance (cid:76)ith the (cid:48).S.
federal securities la(cid:76)s and the applicable rules and regulations of the Securities and E(cid:77)change Commission and the (cid:43)CAOB.
(cid:50)e conducted our audits in accordance (cid:76)ith the standards of the (cid:43)CAOB. (cid:47)hose standards require that (cid:76)e plan and perform the
audits to obtain reasonable assurance about (cid:76)hether the consolidated financial statements are free of material misstatement(cid:11)
(cid:76)hether due to error or fraud(cid:11) and (cid:76)hether effective internal control over financial reporting (cid:76)as maintained in all material
respects.
Our audits of the consolidated financial statements included performing procedures to assess the ris(cid:64)s of material misstatement
of the consolidated financial statements(cid:11) (cid:76)hether due to error or fraud(cid:11) and performing procedures that respond to those ris(cid:64)s.
Such procedures included e(cid:77)amining(cid:11) on a test basis(cid:11) evidence regarding the amounts and disclosures in the consolidated
financial statements. Our audits also included evaluating the accounting principles used and significant estimates made by
management(cid:11) as (cid:76)ell as evaluating the overall presentation of the consolidated financial statements. Our audit of internal
control over financial reporting included obtaining an understanding of internal control over financial reporting(cid:11) assessing the
ris(cid:64) that a material (cid:76)ea(cid:64)ness e(cid:77)ists(cid:11) and testing and evaluating the design and operating effectiveness of internal control based
on the assessed ris(cid:64). Our audits also included performing such other procedures as (cid:76)e considered necessary in the
circumstances. (cid:50)e believe that our audits provide a reasonable basis for our opinions.
(cid:18)efi(cid:50)i(cid:56)io(cid:50) a(cid:50)(cid:40) (cid:26)imi(cid:56)a(cid:56)io(cid:50)s of (cid:23)(cid:50)(cid:56)er(cid:50)a(cid:48) (cid:17)o(cid:50)(cid:56)ro(cid:48) o(cid:58)er (cid:20)i(cid:50)a(cid:50)(cid:39)ia(cid:48) Re(cid:52)or(cid:56)i(cid:50)(cid:43)
A company(cid:89)s internal control over financial reporting is a process designed to provide reasonable assurance regarding the
reliability of financial reporting and the preparation of financial statements for e(cid:77)ternal purposes in accordance (cid:76)ith generally
accepted accounting principles. A company(cid:89)s internal control over financial reporting includes those policies and procedures
that (i) pertain to the maintenance of records that(cid:11) in reasonable detail(cid:11) accurately and fairly reflect the transactions and
dispositions of the assets of the company(cid:26) (ii) provide reasonable assurance that transactions are recorded as necessary to permit
preparation of financial statements in accordance (cid:76)ith generally accepted accounting principles(cid:11) and that receipts and
e(cid:77)penditures of the company are being made only in accordance (cid:76)ith authori(cid:79)ations of management and directors of the
company(cid:26) and (iii) provide reasonable assurance regarding prevention or timely detection of unauthori(cid:79)ed acquisition(cid:11) use(cid:11) or
disposition of the company(cid:89)s assets that could have a material effect on the financial statements.
Because of its inherent limitations(cid:11) internal control over financial reporting may not prevent or detect misstatements. Also(cid:11)
pro(cid:63)ections of any evaluation of effectiveness to future periods are sub(cid:63)ect to the ris(cid:64) that controls may become inadequate
because of changes in conditions(cid:11) or that the degree of compliance (cid:76)ith the policies or procedures may deteriorate.
47
48
Amcor Annual Report 2022
Form 10-K
49
Amcor plc and Subsidiaries
Consolidated Statements of Income
((cid:3) in millions, e(cid:74)cept per share data)
Amcor plc and Subsidiaries
Consolidated Statements of Comprehensive Income
((cid:3) in millions)
For the years ended June 30,
2022
2021
2020
For the years ended June 30,
(cid:41)et sales
Cost of sales
(cid:34)ross profit
Operating e(cid:77)penses(cid:25)
Selling(cid:11) general(cid:11) and administrative e(cid:77)penses
(cid:45)esearch and development e(cid:77)penses
(cid:45)estructuring(cid:11) impairment(cid:11) and related e(cid:77)penses(cid:11) net
Other income(cid:11) net
Operating income
Interest income
Interest e(cid:77)pense
Other non(cid:12)operating income(cid:11) net
$
14(cid:11)544 $
12(cid:11)861 $
(11(cid:11)724)
(10(cid:11)12(cid:24))
12(cid:11)468
((cid:24)(cid:11)(cid:24)32)
(cid:41)et income
Other comprehensive income(cid:14)(loss)(cid:25)
2(cid:11)820
2(cid:11)732
2(cid:11)536
(1(cid:11)284)
((cid:24)6)
(234)
33
(1(cid:11)2(cid:24)2)
(100)
((cid:24)4)
75
(1(cid:11)385)
((cid:24)7)
(115)
55
(cid:41)et gains(cid:14)(losses) on cash flo(cid:76) hedges(cid:11) net of ta(cid:77) (a)
Foreign currency translation ad(cid:63)ustments(cid:11) net of ta(cid:77) (b)
(cid:41)et investment hedge of foreign operations(cid:11) net of ta(cid:77) (c)
(cid:43)ension(cid:11) net of ta(cid:77) (d)
Other comprehensive income(cid:13)(loss)
(cid:44)otal comprehensive income
Comprehensive income attributable to non(cid:12)controlling interests
1(cid:11)23(cid:24)
1(cid:11)321
(cid:24)(cid:24)4
(a) (cid:47)a(cid:77) benefit related to cash flo(cid:76) hedges
24
(15(cid:24))
11
14
(153)
11
22
(207)
16
(b) (cid:47)a(cid:77) benefit(cid:14)(e(cid:77)pense) related to foreign currency translation ad(cid:63)ustments
(c) (cid:47)a(cid:77) benefit related to net investment hedge of foreign operations
(d) (cid:47)a(cid:77) benefit(cid:14)(e(cid:77)pense) related to pension ad(cid:63)ustments
(cid:32)ee a(cid:38)(cid:38)om(cid:51)an(cid:59)(cid:44)ng note(cid:53) to (cid:38)on(cid:53)ol(cid:44)dated (cid:41)(cid:44)nan(cid:38)(cid:44)al (cid:53)tatement(cid:53)(cid:7)
2022
2021
2020
$
815 $
(cid:24)51 $
616
(7)
(201)
(cid:85)
(cid:24)4
(114)
701
(10)
26
205
(cid:85)
52
283
1(cid:11)234
(12)
2 $
(5) $
(cid:85) $
(21) $
(cid:85) $
7 $
(cid:85) $
(14) $
(22)
(287)
(2)
(16)
(327)
28(cid:24)
(4)
2(cid:22)(cid:19)
(cid:85)
(2)
1
12
(cid:3)
$
$
$
$
Comprehensive income attributable to Amcor plc
(cid:20)(cid:23)1 (cid:3)
1,222 (cid:3)
Income from continuing operations before income ta(cid:77)es and equity in income(cid:14)
(loss) of affiliated companies
1(cid:11)115
1(cid:11)1(cid:24)3
825
Income ta(cid:77) e(cid:77)pense
Equity in income(cid:14)(loss) of affiliated companies(cid:11) net of ta(cid:77)
Income from continuing operations
Loss from discontinued operations(cid:11) net of ta(cid:77)
(cid:38)et income
(cid:41)et income attributable to non(cid:12)controlling interests
(cid:38)et income attributable to Amcor plc
Basic earnings per share:
Income from continuing operations
Loss from discontinued operations
(cid:41)et income
Diluted earnings per share:
Income from continuing operations
Loss from discontinued operations
(cid:41)et income
(cid:32)ee a(cid:38)(cid:38)om(cid:51)an(cid:59)(cid:44)ng note(cid:53) to (cid:38)on(cid:53)ol(cid:44)dated (cid:41)(cid:44)nan(cid:38)(cid:44)al (cid:53)tatement(cid:53)(cid:7)
(300)
(cid:85)
815
(cid:85)
(261)
1(cid:24)
(cid:24)51
(cid:85)
(187)
(14)
624
(8)
(cid:22)1(cid:19) (cid:3)
(cid:23)(cid:19)1 (cid:3)
(cid:20)1(cid:20)
(10)
(12)
(4)
(cid:22)0(cid:19) (cid:3)
(cid:23)3(cid:23) (cid:3)
(cid:20)12
0.532 $
0.604 $
(cid:85)
(cid:85)
0.532 $
0.604 $
0.52(cid:24) $
0.602 $
(cid:85)
(cid:85)
0.52(cid:24) $
0.602 $
0.387
(0.005)
0.382
0.387
(0.005)
0.382
(cid:3)
(cid:3)
$
$
$
$
4(cid:24)
Amcor Annual Report 2022
50
49
Form 10-K
(cid:24)0
Amcor plc and Subsidiaries
Consolidated Statements of Income
((cid:3) in millions, e(cid:74)cept per share data)
Amcor plc and Subsidiaries
Consolidated Statements of Comprehensive Income
((cid:3) in millions)
2022
2021
2020
$
815 $
(cid:24)51 $
616
(7)
(201)
(cid:85)
(cid:24)4
(114)
701
(10)
26
205
(cid:85)
52
283
1(cid:11)234
(12)
(cid:3)
$
$
$
$
(cid:20)(cid:23)1 (cid:3)
1,222 (cid:3)
2 $
(5) $
(cid:85) $
(21) $
(cid:85) $
7 $
(cid:85) $
(14) $
(22)
(287)
(2)
(16)
(327)
28(cid:24)
(4)
2(cid:22)(cid:19)
(cid:85)
(2)
1
12
For the years ended June 30,
2022
2021
2020
For the years ended June 30,
$
14(cid:11)544 $
12(cid:11)861 $
(11(cid:11)724)
(10(cid:11)12(cid:24))
12(cid:11)468
((cid:24)(cid:11)(cid:24)32)
(cid:41)et income
Other comprehensive income(cid:14)(loss)(cid:25)
(cid:41)et gains(cid:14)(losses) on cash flo(cid:76) hedges(cid:11) net of ta(cid:77) (a)
Foreign currency translation ad(cid:63)ustments(cid:11) net of ta(cid:77) (b)
(cid:41)et investment hedge of foreign operations(cid:11) net of ta(cid:77) (c)
(cid:43)ension(cid:11) net of ta(cid:77) (d)
Other comprehensive income(cid:13)(loss)
(cid:44)otal comprehensive income
Comprehensive income attributable to non(cid:12)controlling interests
Comprehensive income attributable to Amcor plc
1(cid:11)23(cid:24)
1(cid:11)321
(cid:24)(cid:24)4
(a) (cid:47)a(cid:77) benefit related to cash flo(cid:76) hedges
(b) (cid:47)a(cid:77) benefit(cid:14)(e(cid:77)pense) related to foreign currency translation ad(cid:63)ustments
(c) (cid:47)a(cid:77) benefit related to net investment hedge of foreign operations
(d) (cid:47)a(cid:77) benefit(cid:14)(e(cid:77)pense) related to pension ad(cid:63)ustments
(cid:32)ee a(cid:38)(cid:38)om(cid:51)an(cid:59)(cid:44)ng note(cid:53) to (cid:38)on(cid:53)ol(cid:44)dated (cid:41)(cid:44)nan(cid:38)(cid:44)al (cid:53)tatement(cid:53)(cid:7)
2(cid:11)820
2(cid:11)732
2(cid:11)536
(1(cid:11)284)
((cid:24)6)
(234)
33
(1(cid:11)2(cid:24)2)
(100)
((cid:24)4)
75
(1(cid:11)385)
((cid:24)7)
(115)
55
24
(15(cid:24))
11
(300)
(cid:85)
815
(cid:85)
14
(153)
11
(261)
1(cid:24)
(cid:24)51
(cid:85)
22
(207)
16
(187)
(14)
624
(8)
(cid:41)et sales
Cost of sales
(cid:34)ross profit
Operating e(cid:77)penses(cid:25)
Selling(cid:11) general(cid:11) and administrative e(cid:77)penses
(cid:45)esearch and development e(cid:77)penses
(cid:45)estructuring(cid:11) impairment(cid:11) and related e(cid:77)penses(cid:11) net
Other income(cid:11) net
Operating income
Interest income
Interest e(cid:77)pense
Other non(cid:12)operating income(cid:11) net
Income ta(cid:77) e(cid:77)pense
Equity in income(cid:14)(loss) of affiliated companies(cid:11) net of ta(cid:77)
Income from continuing operations
Loss from discontinued operations(cid:11) net of ta(cid:77)
Income from continuing operations before income ta(cid:77)es and equity in income(cid:14)
(loss) of affiliated companies
1(cid:11)115
1(cid:11)1(cid:24)3
825
(cid:38)et income
(cid:22)1(cid:19) (cid:3)
(cid:23)(cid:19)1 (cid:3)
(cid:20)1(cid:20)
(cid:41)et income attributable to non(cid:12)controlling interests
(10)
(12)
(4)
(cid:38)et income attributable to Amcor plc
(cid:22)0(cid:19) (cid:3)
(cid:23)3(cid:23) (cid:3)
(cid:20)12
Basic earnings per share:
Income from continuing operations
Loss from discontinued operations
(cid:41)et income
Diluted earnings per share:
Income from continuing operations
Loss from discontinued operations
(cid:41)et income
(cid:32)ee a(cid:38)(cid:38)om(cid:51)an(cid:59)(cid:44)ng note(cid:53) to (cid:38)on(cid:53)ol(cid:44)dated (cid:41)(cid:44)nan(cid:38)(cid:44)al (cid:53)tatement(cid:53)(cid:7)
0.532 $
0.604 $
(cid:85)
(cid:85)
0.532 $
0.604 $
0.52(cid:24) $
0.602 $
(cid:85)
(cid:85)
0.52(cid:24) $
0.602 $
0.387
(0.005)
0.382
0.387
(0.005)
0.382
(cid:3)
(cid:3)
$
$
$
$
4(cid:24)
50
Amcor Annual Report 2022
Form 10-K
51
Amcor plc and Subsidiaries
Consolidated Balance Sheets
((cid:3) in millions, e(cid:74)cept share and per share data)
Amcor plc and Subsidiaries
Consolidated Statements of Cash Flows
((cid:3) in millions)
As of June 30,
2022
2021
Assets
Current assets:
Cash and cash equivalents
(cid:47)rade receivables(cid:11) net of allo(cid:76)ance for doubtful accounts of $25 and $28(cid:11) respectively
Inventories(cid:11) net
(cid:43)repaid e(cid:77)penses and other current assets
Assets held for sale(cid:11) net
(cid:47)otal current assets
(cid:38)on-current assets:
(cid:43)roperty(cid:11) plant(cid:11) and equipment(cid:11) net
Operating lease assets
(cid:31)eferred ta(cid:77) assets
Other intangible assets(cid:11) net
(cid:34)ood(cid:76)ill
Employee benefit assets
Other non(cid:12)current assets
(cid:47)otal non(cid:12)current assets
(cid:44)otal assets
Liabilities
Current liabilities:
Current portion of long(cid:12)term debt
Short(cid:12)term debt
(cid:47)rade payables
Accrued employee costs
Other current liabilities
Liabilities held for sale
(cid:47)otal current liabilities
(cid:38)on-current liabilities:
Long(cid:12)term debt(cid:11) less current portion
Operating lease liabilities
(cid:31)eferred ta(cid:77) liabilities
Employee benefit obligations
Other non(cid:12)current liabilities
(cid:47)otal non(cid:12)current liabilities
(cid:44)otal liabilities
Commitments and contingencies (See (cid:41)ote 20)
Shareholders(cid:6) E(cid:67)uity
Amcor plc shareholders(cid:78) e(cid:67)uity:
Ordinary shares ($0.01 par value)(cid:25)
Authori(cid:79)ed ((cid:24)(cid:11)000 million shares)
Issued (1(cid:11)48(cid:24) and 1(cid:11)538 million shares(cid:11) respectively)
Additional paid(cid:12)in capital
(cid:45)etained earnings
Accumulated other comprehensive loss
(cid:47)reasury shares (2 and 3 million shares(cid:11) respectively)
(cid:44)otal Amcor plc shareholders(cid:6) e(cid:67)uity
(cid:41)on(cid:12)controlling interests
(cid:44)otal shareholders(cid:6) e(cid:67)uity
(cid:44)otal liabilities and shareholders(cid:6) e(cid:67)uity
(cid:32)ee a(cid:38)(cid:38)om(cid:51)an(cid:59)(cid:44)ng note(cid:53) to (cid:38)on(cid:53)ol(cid:44)dated (cid:41)(cid:44)nan(cid:38)(cid:44)al (cid:53)tatement(cid:53)(cid:7)
$
775 $
1(cid:11)(cid:24)35
2(cid:11)43(cid:24)
512
1(cid:24)2
5(cid:11)853
3(cid:11)646
560
130
1(cid:11)657
5(cid:11)285
8(cid:24)
206
11(cid:11)573
1(cid:21),(cid:18)2(cid:20) (cid:3)
14 $
136
3(cid:11)073
471
1(cid:11)344
65
5(cid:11)103
6(cid:11)340
4(cid:24)3
677
201
471
8(cid:11)182
13,2(cid:22)(cid:19) (cid:3)
850
1(cid:11)864
1(cid:11)(cid:24)(cid:24)1
561
(cid:85)
5(cid:11)266
3(cid:11)761
532
13(cid:24)
1(cid:11)835
5(cid:11)41(cid:24)
52
184
11(cid:11)(cid:24)22
1(cid:21),1(cid:22)(cid:22)
5
(cid:24)8
2(cid:11)574
523
1(cid:11)145
(cid:85)
4(cid:11)345
6(cid:11)186
462
6(cid:24)6
307
371
8(cid:11)022
12,3(cid:20)(cid:21)
15 $
4(cid:11)431
534
(880)
(18)
4(cid:11)082
5(cid:24)
(cid:18),1(cid:18)1
1(cid:21),(cid:18)2(cid:20) (cid:3)
15
5(cid:11)0(cid:24)2
452
(766)
(2(cid:24))
4(cid:11)764
57
(cid:18),(cid:22)21
1(cid:21),1(cid:22)(cid:22)
(cid:3)
$
(cid:3)
$
(cid:3)
51
Amcor Annual Report 2022
52
For the years ended June 30,
Cash flo(cid:76)s from operating activities(cid:25)
(cid:41)et income
2022
2021
2020
$
815 $
(cid:24)51 $
Ad(cid:63)ustments to reconcile net income to net cash provided by operating activities(cid:25)
(cid:31)epreciation(cid:11) amorti(cid:79)ation(cid:11) and impairment
(cid:45)ussia and (cid:48)(cid:64)raine impairment
(cid:41)et periodic benefit cost
Amorti(cid:79)ation of debt discount and deferred financing costs
(cid:41)et gain on disposal of property(cid:11) plant(cid:11) and equipment
(cid:41)et gain on disposal of businesses
Equity in (income)(cid:14)loss of affiliated companies
(cid:41)et foreign e(cid:77)change (gain)(cid:14)loss
Share(cid:12)based compensation
Other(cid:11) net
Loss from highly inflationary accounting for Argentine subsidiaries
(cid:31)eferred income ta(cid:77)es(cid:11) net
(cid:31)ividends received from affiliated companies
Changes in operating assets and liabilities(cid:11) e(cid:77)cluding effect of acquisitions(cid:11)
divestitures(cid:11) and currency(cid:25)
(cid:47)rade receivables
Inventories
(cid:43)repaid e(cid:77)penses and other current assets
(cid:47)rade payables
Other current liabilities
Accrued employee costs
Employee benefit obligations
Other(cid:11) net
(cid:38)et cash provided by operating activities
Cash flo(cid:76)s from investing activities(cid:25)
Issuance of loans to affiliated companies
Investments in affiliated companies and other
(cid:43)urchase of property(cid:11) plant(cid:11) and equipment(cid:11) and other intangible assets
((cid:43)ayments)(cid:14)proceeds from divestitures
(cid:43)roceeds from sales of property(cid:11) plant(cid:11) and equipment(cid:11) and other intangible
assets
(cid:38)et cash (used in)(cid:13)provided by investing activities
Cash flo(cid:76)s from financing activities(cid:25)
(cid:43)roceeds from issuance of shares
(cid:43)urchase of treasury shares
(cid:43)roceeds from(cid:14)(purchase of) non(cid:12)controlling interest
(cid:43)roceeds from issuance of long(cid:12)term debt
(cid:45)epayment of long(cid:12)term debt
(cid:41)et borro(cid:76)ing(cid:14)(repayment) of commercial paper
(cid:41)et borro(cid:76)ing(cid:14)(repayment) of short(cid:12)term debt
(cid:45)epayment of lease liabilities
Share buybac(cid:64)(cid:14)cancellations
(cid:31)ividends paid
(cid:38)et cash used in financing activities
Effect of e(cid:77)change rates on cash and cash equivalents
Cash and cash equivalents classified as held for sale
(cid:41)et increase(cid:14)(decrease) in cash and cash equivalents
Cash and cash equivalents balance at beginning of the fiscal year
1,(cid:19)2(cid:20)
1,(cid:18)(cid:20)1
1,3(cid:22)(cid:18)
625
138
12
2
(3)
(cid:85)
(cid:85)
(14)
63
106
22
(33)
(cid:85)
(272)
(626)
(67)
711
123
(20)
(35)
(21)
(5)
(12)
(527)
(1)
18
((cid:19)2(cid:21))
114
(143)
(cid:85)
1(cid:11)066
(1(cid:11)243)
638
15
(5)
(601)
(732)
((cid:22)(cid:23)1)
(108)
(75)
(75)
850
574
(cid:85)
15
10
(10)
(44)
(1(cid:24))
21
58
(83)
27
4
4
(18(cid:24))
(112)
((cid:24)0)
342
11
2(cid:24)
(40)
2
(cid:85)
(5)
(468)
214
26
(233)
30
(8)
(8)
7(cid:24)0
(530)
(235)
(123)
(2)
(351)
(742)
58
(cid:85)
107
743
(1,1(cid:21)(cid:23))
616
652
(cid:85)
10
8
(4)
(cid:85)
14
(16)
34
(cid:85)
38
(114)
7
133
26
(23)
(48)
8
81
(33)
(5)
(cid:85)
(cid:85)
(400)
425
13
3(cid:22)
(67)
1
4
3(cid:11)1(cid:24)4
(4(cid:11)225)
1(cid:11)742
(585)
(2)
(537)
(761)
(1,23(cid:20))
(45)
(cid:85)
141
602
(cid:21)(cid:18)3
Cash and cash equivalents balance at end of the fiscal year
(cid:3)
(cid:21)(cid:21)(cid:19) (cid:3)
(cid:22)(cid:19)0 (cid:3)
(cid:32)ee a(cid:38)(cid:38)om(cid:51)an(cid:59)(cid:44)ng note(cid:53) to (cid:38)on(cid:53)ol(cid:44)dated (cid:41)(cid:44)nan(cid:38)(cid:44)al (cid:53)tatement(cid:53)(cid:5) (cid:44)n(cid:38)l(cid:55)d(cid:44)ng (cid:28)ote (cid:11)(cid:12)(cid:5) (cid:2)(cid:32)(cid:55)(cid:51)(cid:51)lemental Ca(cid:53)(cid:43) Flow In(cid:41)ormat(cid:44)on(cid:7)(cid:2)
As of June 30,
Current assets:
Cash and cash equivalents
Assets
(cid:47)rade receivables(cid:11) net of allo(cid:76)ance for doubtful accounts of $25 and $28(cid:11) respectively
2022
2021
$
775 $
Liabilities
11(cid:11)573
1(cid:21),(cid:18)2(cid:20) (cid:3)
11(cid:11)(cid:24)22
1(cid:21),1(cid:22)(cid:22)
(cid:3)
$
14 $
Inventories(cid:11) net
(cid:43)repaid e(cid:77)penses and other current assets
Assets held for sale(cid:11) net
(cid:47)otal current assets
(cid:38)on-current assets:
(cid:43)roperty(cid:11) plant(cid:11) and equipment(cid:11) net
Operating lease assets
(cid:31)eferred ta(cid:77) assets
Other intangible assets(cid:11) net
(cid:34)ood(cid:76)ill
Employee benefit assets
Other non(cid:12)current assets
(cid:47)otal non(cid:12)current assets
(cid:44)otal assets
Current liabilities:
Current portion of long(cid:12)term debt
Short(cid:12)term debt
(cid:47)rade payables
Accrued employee costs
Other current liabilities
Liabilities held for sale
(cid:47)otal current liabilities
(cid:38)on-current liabilities:
Long(cid:12)term debt(cid:11) less current portion
Operating lease liabilities
(cid:31)eferred ta(cid:77) liabilities
Employee benefit obligations
Other non(cid:12)current liabilities
(cid:47)otal non(cid:12)current liabilities
(cid:44)otal liabilities
Issued (1(cid:11)48(cid:24) and 1(cid:11)538 million shares(cid:11) respectively)
$
15 $
Commitments and contingencies (See (cid:41)ote 20)
Shareholders(cid:6) E(cid:67)uity
Amcor plc shareholders(cid:78) e(cid:67)uity:
Ordinary shares ($0.01 par value)(cid:25)
Authori(cid:79)ed ((cid:24)(cid:11)000 million shares)
Additional paid(cid:12)in capital
(cid:45)etained earnings
Accumulated other comprehensive loss
(cid:47)reasury shares (2 and 3 million shares(cid:11) respectively)
(cid:44)otal Amcor plc shareholders(cid:6) e(cid:67)uity
(cid:41)on(cid:12)controlling interests
(cid:44)otal shareholders(cid:6) e(cid:67)uity
(cid:44)otal liabilities and shareholders(cid:6) e(cid:67)uity
(cid:32)ee a(cid:38)(cid:38)om(cid:51)an(cid:59)(cid:44)ng note(cid:53) to (cid:38)on(cid:53)ol(cid:44)dated (cid:41)(cid:44)nan(cid:38)(cid:44)al (cid:53)tatement(cid:53)(cid:7)
1(cid:11)(cid:24)35
2(cid:11)43(cid:24)
512
1(cid:24)2
5(cid:11)853
3(cid:11)646
560
130
1(cid:11)657
5(cid:11)285
8(cid:24)
206
136
3(cid:11)073
471
1(cid:11)344
65
5(cid:11)103
6(cid:11)340
4(cid:24)3
677
201
471
8(cid:11)182
4(cid:11)431
534
(880)
(18)
4(cid:11)082
5(cid:24)
(cid:18),1(cid:18)1
850
1(cid:11)864
1(cid:11)(cid:24)(cid:24)1
561
(cid:85)
5(cid:11)266
3(cid:11)761
532
13(cid:24)
1(cid:11)835
5(cid:11)41(cid:24)
52
184
5
(cid:24)8
2(cid:11)574
523
1(cid:11)145
(cid:85)
4(cid:11)345
6(cid:11)186
462
6(cid:24)6
307
371
8(cid:11)022
12,3(cid:20)(cid:21)
15
5(cid:11)0(cid:24)2
452
(766)
(2(cid:24))
4(cid:11)764
57
(cid:18),(cid:22)21
1(cid:21),1(cid:22)(cid:22)
(cid:3)
13,2(cid:22)(cid:19) (cid:3)
51
Form 10-K
(cid:24)2
Amcor plc and Subsidiaries
Consolidated Balance Sheets
((cid:3) in millions, e(cid:74)cept share and per share data)
Amcor plc and Subsidiaries
Consolidated Statements of Cash Flows
((cid:3) in millions)
For the years ended June 30,
Cash flo(cid:76)s from operating activities(cid:25)
(cid:41)et income
Ad(cid:63)ustments to reconcile net income to net cash provided by operating activities(cid:25)
2022
2021
2020
$
815 $
(cid:24)51 $
616
(cid:31)epreciation(cid:11) amorti(cid:79)ation(cid:11) and impairment
(cid:45)ussia and (cid:48)(cid:64)raine impairment
(cid:41)et periodic benefit cost
Amorti(cid:79)ation of debt discount and deferred financing costs
(cid:41)et gain on disposal of property(cid:11) plant(cid:11) and equipment
(cid:41)et gain on disposal of businesses
Equity in (income)(cid:14)loss of affiliated companies
(cid:41)et foreign e(cid:77)change (gain)(cid:14)loss
Share(cid:12)based compensation
Other(cid:11) net
Loss from highly inflationary accounting for Argentine subsidiaries
(cid:31)eferred income ta(cid:77)es(cid:11) net
(cid:31)ividends received from affiliated companies
Changes in operating assets and liabilities(cid:11) e(cid:77)cluding effect of acquisitions(cid:11)
divestitures(cid:11) and currency(cid:25)
(cid:47)rade receivables
Inventories
(cid:43)repaid e(cid:77)penses and other current assets
(cid:47)rade payables
Other current liabilities
Accrued employee costs
Employee benefit obligations
Other(cid:11) net
(cid:38)et cash provided by operating activities
Cash flo(cid:76)s from investing activities(cid:25)
Issuance of loans to affiliated companies
Investments in affiliated companies and other
(cid:43)urchase of property(cid:11) plant(cid:11) and equipment(cid:11) and other intangible assets
((cid:43)ayments)(cid:14)proceeds from divestitures
(cid:43)roceeds from sales of property(cid:11) plant(cid:11) and equipment(cid:11) and other intangible
assets
(cid:38)et cash (used in)(cid:13)provided by investing activities
Cash flo(cid:76)s from financing activities(cid:25)
(cid:43)roceeds from issuance of shares
(cid:43)urchase of treasury shares
(cid:43)roceeds from(cid:14)(purchase of) non(cid:12)controlling interest
(cid:43)roceeds from issuance of long(cid:12)term debt
(cid:45)epayment of long(cid:12)term debt
(cid:41)et borro(cid:76)ing(cid:14)(repayment) of commercial paper
(cid:41)et borro(cid:76)ing(cid:14)(repayment) of short(cid:12)term debt
(cid:45)epayment of lease liabilities
Share buybac(cid:64)(cid:14)cancellations
(cid:31)ividends paid
(cid:38)et cash used in financing activities
Effect of e(cid:77)change rates on cash and cash equivalents
Cash and cash equivalents classified as held for sale
(cid:3)
1(cid:21),(cid:18)2(cid:20) (cid:3)
(cid:41)et increase(cid:14)(decrease) in cash and cash equivalents
Cash and cash equivalents balance at beginning of the fiscal year
625
138
12
2
(3)
(cid:85)
(cid:85)
(14)
63
106
22
(33)
(cid:85)
(272)
(626)
(67)
711
123
(20)
(35)
(21)
1,(cid:19)2(cid:20)
(5)
(12)
(527)
(1)
18
((cid:19)2(cid:21))
114
(143)
(cid:85)
1(cid:11)066
(1(cid:11)243)
638
15
(5)
(601)
(732)
((cid:22)(cid:23)1)
(108)
(75)
(75)
850
574
(cid:85)
15
10
(10)
(44)
(1(cid:24))
21
58
(83)
27
4
4
(18(cid:24))
(112)
((cid:24)0)
342
11
2(cid:24)
(40)
2
1,(cid:18)(cid:20)1
(cid:85)
(5)
(468)
214
26
(233)
30
(8)
(8)
7(cid:24)0
(530)
(235)
(123)
(2)
(351)
(742)
(1,1(cid:21)(cid:23))
58
(cid:85)
107
743
Cash and cash equivalents balance at end of the fiscal year
(cid:3)
(cid:21)(cid:21)(cid:19) (cid:3)
(cid:22)(cid:19)0 (cid:3)
652
(cid:85)
10
8
(4)
(cid:85)
14
(16)
34
(cid:85)
38
(114)
7
133
26
(23)
(48)
8
81
(33)
(5)
1,3(cid:22)(cid:18)
(cid:85)
(cid:85)
(400)
425
13
3(cid:22)
1
(67)
4
3(cid:11)1(cid:24)4
(4(cid:11)225)
1(cid:11)742
(585)
(2)
(537)
(761)
(1,23(cid:20))
(45)
(cid:85)
141
602
(cid:21)(cid:18)3
51
52
Amcor Annual Report 2022
(cid:32)ee a(cid:38)(cid:38)om(cid:51)an(cid:59)(cid:44)ng note(cid:53) to (cid:38)on(cid:53)ol(cid:44)dated (cid:41)(cid:44)nan(cid:38)(cid:44)al (cid:53)tatement(cid:53)(cid:5) (cid:44)n(cid:38)l(cid:55)d(cid:44)ng (cid:28)ote (cid:11)(cid:12)(cid:5) (cid:2)(cid:32)(cid:55)(cid:51)(cid:51)lemental Ca(cid:53)(cid:43) Flow In(cid:41)ormat(cid:44)on(cid:7)(cid:2)
Amcor plc and Subsidiaries
(cid:38)otes to Consolidated Financial Statements
(cid:38)ote 1 - Business Description
Amcor plc ("Amcor" or the "Company") is a public limited company incorporated under the La(cid:76)s of the Baili(cid:76)ic(cid:64) of
(cid:37)ersey. (cid:47)he Company(cid:6)s history dates bac(cid:64) more than 150 years(cid:11) (cid:76)ith origins in both Australia and the (cid:48)nited States of America.
(cid:47)oday(cid:11) Amcor is a global leader in developing and producing responsible pac(cid:64)aging for food(cid:11) beverage(cid:11) pharmaceutical(cid:11)
medical(cid:11) home and personal(cid:12)care(cid:11) and other consumer goods end mar(cid:64)ets. (cid:47)he Company(cid:6)s innovation e(cid:77)cellence and global
pac(cid:64)aging e(cid:77)pertise enables the Company to solve pac(cid:64)aging challenges around the (cid:76)orld every day(cid:11) producing pac(cid:64)aging that
is more functional(cid:11) appealing(cid:11) and cost effective for its customers and their consumers and importantly(cid:11) more sustainable for the
environment.
(cid:47)he Company(cid:6)s business activities are organi(cid:79)ed around t(cid:76)o reportable segments(cid:11) Fle(cid:77)ibles and (cid:45)igid (cid:43)ac(cid:64)aging. (cid:47)he
Company has a globally diverse operating footprint(cid:11) selling to customers in Europe(cid:11) (cid:41)orth America(cid:11) Latin America(cid:11) and the
Asia (cid:43)acific regions. (cid:47)he Company develops and produces a broad range of pac(cid:64)aging products including fle(cid:77)ible pac(cid:64)aging(cid:11)
rigid pac(cid:64)aging containers(cid:11) specialty cartons(cid:11) and closures. (cid:47)he Company(cid:6)s sales are (cid:76)idely diversified(cid:11) (cid:76)ith the ma(cid:63)ority of
sales made to the food(cid:11) beverage(cid:11) pharmaceutical(cid:11) medical device(cid:11) home and personal care(cid:11) and other consumer goods end
mar(cid:64)ets. All mar(cid:64)ets are considered to be highly competitive as to price(cid:11) innovation(cid:11) quality(cid:11) and service.
Form 10-K
53
Amcor plc and Subsidiaries
Consolidated Statements of E(cid:67)uity
((cid:3) in millions, e(cid:74)cept per share data)
Balance as of June 30, 201(cid:23)
(cid:3)
1(cid:20) (cid:3)
(cid:20),00(cid:22) (cid:3)
32(cid:18) (cid:3)
((cid:21)22) (cid:3)
(1(cid:20)) (cid:3)
(cid:20)(cid:19) (cid:3) (cid:19),(cid:20)(cid:21)(cid:19)
Ordinary
Shares
Additional
Paid-In
Capital
Retained
Earnings
Accumulated
Other
Comprehensive
Loss
(cid:44)reasury
Shares
(cid:38)on-
controlling
Interest
(cid:44)otal
(cid:41)et income
Other comprehensive loss
Share buybac(cid:64)(cid:14)cancellations
(cid:31)ividends declared ($0.465 per share)
Options e(cid:77)ercised and shares vested
For(cid:76)ard contracts entered to purchase o(cid:76)n
equity to meet share(cid:12)based incentive plans(cid:11)
net of ta(cid:77)
(cid:43)urchase of treasury shares
Share(cid:12)based compensation e(cid:77)pense
Change in non(cid:12)controlling interest
Cumulative ad(cid:63)ustment related to the
adoption of ASC 842
(cid:85)
(537)
(15)
(10)
34
Balance as of June 30, 2020
1(cid:20)
(cid:19),(cid:18)(cid:22)0
(cid:41)et income
Other comprehensive income
Share buybac(cid:64)(cid:14)cancellations
(cid:31)ividends declared ($0.4675 per share)
Options e(cid:77)ercised and shares vested
For(cid:76)ard contracts entered to purchase o(cid:76)n
equity to meet share(cid:12)based incentive plans(cid:11)
net of ta(cid:77)
(cid:43)urchase of treasury shares
Share(cid:12)based compensation e(cid:77)pense
Change in non(cid:12)controlling interest
Cumulative ad(cid:63)ustment related to the
adoption of ASC 326
(1)
(350)
(16)
(72)
58
(8)
Balance as of June 30, 2021
1(cid:19)
(cid:19),0(cid:23)2
(cid:41)et income
Other comprehensive loss
Share buybac(cid:64)(cid:14)cancellations
(cid:31)ividends declared ($0.4775 per share)
Options e(cid:77)ercised and shares vested
For(cid:76)ard contracts entered to purchase o(cid:76)n
equity to meet share(cid:12)based incentive plans(cid:11)
net of ta(cid:77)
(cid:43)urchase of treasury shares
Share(cid:12)based compensation e(cid:77)pense
Change in non(cid:12)controlling interest
(cid:85)
(601)
(40)
(83)
63
(cid:85)
612
(748)
(cid:85)
58
2(cid:18)(cid:20)
(cid:24)3(cid:24)
(728)
(cid:85)
(5)
(cid:18)(cid:19)2
805
(723)
(327)
16
(67)
(1,0(cid:18)(cid:23))
((cid:20)(cid:21))
283
46
(8)
((cid:21)(cid:20)(cid:20))
(2(cid:23))
(114)
154
(143)
4
(cid:85)
(13)
5
(cid:20)1
12
(cid:85)
(14)
(2)
(cid:19)(cid:21)
10
(cid:85)
((cid:24))
1
616
(327)
(537)
(761)
1
(10)
(67)
34
5
58
(cid:18),(cid:20)(cid:22)(cid:21)
(cid:24)51
283
(351)
(742)
30
(72)
(8)
58
(10)
(5)
(cid:18),(cid:22)21
815
(114)
(601)
(732)
114
(83)
(143)
63
1
Balance as of June 30, 2022
(cid:3)
1(cid:19) (cid:3)
(cid:18),(cid:18)31 (cid:3)
(cid:19)3(cid:18) (cid:3)
((cid:22)(cid:22)0) (cid:3)
(1(cid:22)) (cid:3)
(cid:19)(cid:23) (cid:3) (cid:18),1(cid:18)1
(cid:32)ee a(cid:38)(cid:38)om(cid:51)an(cid:59)(cid:44)ng note(cid:53) to (cid:38)on(cid:53)ol(cid:44)dated (cid:41)(cid:44)nan(cid:38)(cid:44)al (cid:53)tatement(cid:53)(cid:7)
53
Amcor Annual Report 2022
54
53
Form 10-K
54
Amcor plc and Subsidiaries
Consolidated Statements of E(cid:67)uity
((cid:3) in millions, e(cid:74)cept per share data)
Amcor plc and Subsidiaries
(cid:38)otes to Consolidated Financial Statements
(cid:38)ote 1 - Business Description
Amcor plc ("Amcor" or the "Company") is a public limited company incorporated under the La(cid:76)s of the Baili(cid:76)ic(cid:64) of
(cid:37)ersey. (cid:47)he Company(cid:6)s history dates bac(cid:64) more than 150 years(cid:11) (cid:76)ith origins in both Australia and the (cid:48)nited States of America.
(cid:47)oday(cid:11) Amcor is a global leader in developing and producing responsible pac(cid:64)aging for food(cid:11) beverage(cid:11) pharmaceutical(cid:11)
medical(cid:11) home and personal(cid:12)care(cid:11) and other consumer goods end mar(cid:64)ets. (cid:47)he Company(cid:6)s innovation e(cid:77)cellence and global
pac(cid:64)aging e(cid:77)pertise enables the Company to solve pac(cid:64)aging challenges around the (cid:76)orld every day(cid:11) producing pac(cid:64)aging that
is more functional(cid:11) appealing(cid:11) and cost effective for its customers and their consumers and importantly(cid:11) more sustainable for the
environment.
(cid:47)he Company(cid:6)s business activities are organi(cid:79)ed around t(cid:76)o reportable segments(cid:11) Fle(cid:77)ibles and (cid:45)igid (cid:43)ac(cid:64)aging. (cid:47)he
Company has a globally diverse operating footprint(cid:11) selling to customers in Europe(cid:11) (cid:41)orth America(cid:11) Latin America(cid:11) and the
Asia (cid:43)acific regions. (cid:47)he Company develops and produces a broad range of pac(cid:64)aging products including fle(cid:77)ible pac(cid:64)aging(cid:11)
rigid pac(cid:64)aging containers(cid:11) specialty cartons(cid:11) and closures. (cid:47)he Company(cid:6)s sales are (cid:76)idely diversified(cid:11) (cid:76)ith the ma(cid:63)ority of
sales made to the food(cid:11) beverage(cid:11) pharmaceutical(cid:11) medical device(cid:11) home and personal care(cid:11) and other consumer goods end
mar(cid:64)ets. All mar(cid:64)ets are considered to be highly competitive as to price(cid:11) innovation(cid:11) quality(cid:11) and service.
54
Amcor Annual Report 2022
Balance as of June 30, 201(cid:23)
(cid:3)
1(cid:20) (cid:3)
(cid:20),00(cid:22) (cid:3)
32(cid:18) (cid:3)
((cid:21)22) (cid:3)
(1(cid:20)) (cid:3)
(cid:20)(cid:19) (cid:3) (cid:19),(cid:20)(cid:21)(cid:19)
Additional
Accumulated
Other
(cid:38)on-
Ordinary
Shares
Paid-In
Capital
Retained
Earnings
Comprehensive
(cid:44)reasury
controlling
Loss
Shares
Interest
(cid:44)otal
(cid:85)
(537)
(327)
(cid:41)et income
Other comprehensive loss
Share buybac(cid:64)(cid:14)cancellations
(cid:31)ividends declared ($0.465 per share)
Options e(cid:77)ercised and shares vested
For(cid:76)ard contracts entered to purchase o(cid:76)n
equity to meet share(cid:12)based incentive plans(cid:11)
net of ta(cid:77)
(cid:43)urchase of treasury shares
Share(cid:12)based compensation e(cid:77)pense
Change in non(cid:12)controlling interest
Cumulative ad(cid:63)ustment related to the
adoption of ASC 842
(cid:41)et income
Other comprehensive income
Share buybac(cid:64)(cid:14)cancellations
(cid:31)ividends declared ($0.4675 per share)
Options e(cid:77)ercised and shares vested
For(cid:76)ard contracts entered to purchase o(cid:76)n
equity to meet share(cid:12)based incentive plans(cid:11)
net of ta(cid:77)
(cid:43)urchase of treasury shares
Share(cid:12)based compensation e(cid:77)pense
Change in non(cid:12)controlling interest
Cumulative ad(cid:63)ustment related to the
adoption of ASC 326
(cid:41)et income
Other comprehensive loss
Share buybac(cid:64)(cid:14)cancellations
(cid:31)ividends declared ($0.4775 per share)
Options e(cid:77)ercised and shares vested
For(cid:76)ard contracts entered to purchase o(cid:76)n
equity to meet share(cid:12)based incentive plans(cid:11)
net of ta(cid:77)
(cid:43)urchase of treasury shares
Share(cid:12)based compensation e(cid:77)pense
Change in non(cid:12)controlling interest
Balance as of June 30, 2020
1(cid:20)
(cid:19),(cid:18)(cid:22)0
(1,0(cid:18)(cid:23))
((cid:20)(cid:21))
(cid:18),(cid:20)(cid:22)(cid:21)
(1)
(350)
283
Balance as of June 30, 2021
1(cid:19)
(cid:19),0(cid:23)2
((cid:21)(cid:20)(cid:20))
(2(cid:23))
(cid:18),(cid:22)21
(cid:85)
(601)
(114)
Balance as of June 30, 2022
(cid:3)
1(cid:19) (cid:3)
(cid:18),(cid:18)31 (cid:3)
(cid:19)3(cid:18) (cid:3)
((cid:22)(cid:22)0) (cid:3)
(1(cid:22)) (cid:3)
(cid:19)(cid:23) (cid:3) (cid:18),1(cid:18)1
(cid:32)ee a(cid:38)(cid:38)om(cid:51)an(cid:59)(cid:44)ng note(cid:53) to (cid:38)on(cid:53)ol(cid:44)dated (cid:41)(cid:44)nan(cid:38)(cid:44)al (cid:53)tatement(cid:53)(cid:7)
4
(cid:85)
(13)
5
(cid:20)1
12
(cid:85)
(14)
(2)
(cid:19)(cid:21)
10
(cid:85)
((cid:24))
1
616
(327)
(537)
(761)
1
(10)
(67)
34
5
58
(cid:24)51
283
(351)
(742)
30
(72)
(8)
58
(10)
(5)
815
(114)
(601)
(732)
114
(83)
(143)
63
1
16
(67)
46
(8)
154
(143)
612
(748)
(cid:85)
58
2(cid:18)(cid:20)
(cid:24)3(cid:24)
(728)
(cid:85)
(5)
(cid:18)(cid:19)2
805
(723)
(15)
(10)
34
(16)
(72)
58
(8)
(40)
(83)
63
(cid:85)
53
Form 10-K
55
(cid:38)ote 2 - Significant Accounting Policies
Basis of Presentation and Principles of Consolidation: (cid:47)he consolidated financial statements include the accounts of the
Company and subsidiaries for (cid:76)hich the Company has a controlling financial interest. All significant intercompany transactions
and balances have been eliminated. (cid:47)he consolidated financial statements are prepared in accordance (cid:76)ith accounting principles
generally accepted in the (cid:48)nited States of America ("(cid:48).S. (cid:34)AA(cid:43)").
Certain amounts in the Company(cid:6)s notes to consolidated financial statements may not add or recalculate due to
operations (cid:76)ith a functional currency other than the (cid:48).S. dollar are translated at the e(cid:77)change rate as of the balance sheet date(cid:11)
rounding.
Business Combinations: (cid:47)he Company uses the acquisition method of accounting(cid:11) (cid:76)hich requires separate recognition of
assets acquired and liabilities assumed from good(cid:76)ill(cid:11) at the acquisition date fair values. (cid:34)ood(cid:76)ill as of the acquisition date is
measured as the e(cid:77)cess of consideration transferred and the fair value of any non(cid:12)controlling interests in the acquiree over the
net of the acquisition date fair values of the assets acquired and liabilities assumed. (cid:31)uring the measurement period(cid:11) (cid:76)hich may
be up to one year from the acquisition date(cid:11) the Company has the ability to record ad(cid:63)ustments to the assets acquired and
liabilities assumed (cid:76)ith the corresponding offset to good(cid:76)ill. (cid:48)pon the conclusion of the measurement period or final
determination of the values of assets acquired or liabilities assumed(cid:11) (cid:76)hichever comes first(cid:11) any subsequent ad(cid:63)ustments are
recorded in the consolidated statements of income.
(cid:32)eld for Sale and Discontinued Operations: (cid:47)he Company classifies assets and liabilities (the "disposal group") as held for
sale in the period (cid:76)hen all of the relevant criteria to be classified as held for sale are met. Criteria include management
commitment to sell the disposal group in its present condition and the sale being deemed probable of being completed (cid:76)ithin
one year. Assets held for sale are reported at the lo(cid:76)er of their carrying value or fair value less cost to sell. Fair value is
determined based on management(cid:89)s assessment of indicative bids(cid:11) a mar(cid:64)et multiples model in (cid:76)hich a mar(cid:64)et multiple is
applied to forecasted earnings before interest(cid:11) ta(cid:77)es(cid:11) depreciation(cid:11) and amorti(cid:79)ation ((cid:86)EBI(cid:47)(cid:31)A(cid:87))(cid:11) discounted cash flo(cid:76)s(cid:11)
appraised values or management(cid:6)s estimates(cid:11) depending on the specific situation. Any loss resulting from the measurement is
recogni(cid:79)ed in the period the held for sale criteria are met. If the disposal group meets the definition of a business(cid:11) the good(cid:76)ill
(cid:76)ithin the reporting unit is allocated to the disposal group based on its relative fair value. (cid:47)he Company assesses the fair value
of a disposal group(cid:11) less any costs to sell(cid:11) each reporting period it remains classified as held for sale and reports any subsequent
changes as an ad(cid:63)ustment to the carrying value of the disposal group(cid:11) as long as the ne(cid:76) carrying value does not e(cid:77)ceed the
initial carrying value of the disposal group. Assets held for sale are not amorti(cid:79)ed or depreciated. (cid:47)he Company recorded an
impairment charge on assets held for sale of $(cid:24)0 million for the fiscal year ended (cid:37)une 30(cid:11) 2022.
A disposal group that represents a strategic shift to the Company or is acquired (cid:76)ith the intention to sell is reflected as
a discontinued operation on the consolidated statements of income and prior periods are recast to reflect the earnings or losses
as income from discontinued operations. (cid:47)he consolidated financial statements and related notes reflect the three plants in
Europe acquired as part of the Bemis acquisition as a discontinued operation in fiscal year 201(cid:24) as the Company agreed to
divest of these plants as a condition of approval from the European Commission. (cid:47)he plants (cid:76)ere divested in the first quarter of
fiscal year 2020.
See (cid:41)ote 6(cid:11) "(cid:35)eld for Sale and (cid:31)iscontinued Operations(cid:11)" for more information on assets held for sale and
discontinued operations.
Estimates and Assumptions Re(cid:67)uired: (cid:47)he preparation of financial statements in conformity (cid:76)ith (cid:48).S. (cid:34)AA(cid:43) requires
management to ma(cid:64)e estimates and assumptions that affect the reported amounts of assets and liabilities at the date of the
consolidated financial statements and the reported amounts of revenues and e(cid:77)penses during the reporting periods.
(cid:47)hese estimates are based on historical e(cid:77)perience and various assumptions believed to be reasonable under the
circumstances. (cid:40)anagement evaluates these estimates on an ongoing basis and ad(cid:63)usts or revises the estimates as circumstances
change. As future events and their impacts cannot be determined (cid:76)ith precision(cid:11) actual results may differ from these estimates.
In the opinion of management(cid:11) the consolidated financial statements reflect all ad(cid:63)ustments necessary to fairly present the
results of the periods presented.
(cid:44)ranslation of Foreign Currencies: (cid:47)he reporting currency of the Company is the (cid:48).S. dollar. (cid:47)he functional currency of the
Company(cid:89)s subsidiaries is generally the local currency of each entity. (cid:47)ransactions in currencies other than the functional
currency of the entity are recorded at the rates of e(cid:77)change prevailing at the date of the transaction. (cid:40)onetary assets and
liabilities in currencies other than the entity(cid:89)s functional currency are remeasured at the e(cid:77)change rate as of the balance sheet
date to the entity(cid:89)s functional currency. Foreign currency transaction gains and losses related to short(cid:12)term and long(cid:12)term debt
are recorded in other non(cid:12)operating income(cid:11) net(cid:11) in the consolidated statements of income and the net gains or net losses are not
55
Amcor Annual Report 2022
56
material in any of the periods presented. All other foreign currency transaction gains and losses are recorded in other income(cid:11)
net in the consolidated statements of income. (cid:47)hese foreign currency transaction net gains or net losses amounted to a net gain
of $1(cid:24) million(cid:11) a net loss of $4 million(cid:11) and a net gain of $21 million during the fiscal years ended (cid:37)une 30(cid:11) 2022(cid:11) 2021(cid:11) and
2020(cid:11) respectively.
(cid:48)pon consolidation(cid:11) the results of operations of subsidiaries (cid:76)hose functional currency is other than the reporting
currency of the Company are translated using average e(cid:77)change rates in effect during each year. Assets and liabilities of
(cid:76)hile equity balances are translated at historical rates. (cid:47)ranslation gains and losses are reported in accumulated other
comprehensive loss as a component of shareholders(cid:89) equity.
(cid:32)ighly Inflationary Accounting: A highly inflationary economy is defined as an economy (cid:76)ith a cumulative inflation rate of
appro(cid:77)imately 100 percent or more over a three(cid:12)year period. As of (cid:37)uly 1(cid:11) 2018(cid:11) the Argentine economy (cid:76)as designated as
highly inflationary for accounting purposes. Accordingly(cid:11) the (cid:48).S. dollar replaced the Argentine peso as the functional currency
for the Company(cid:6)s subsidiaries in Argentina. (cid:47)he impact of highly inflationary accounting on monetary balances (cid:76)as a loss of
$16 million(cid:11) $1(cid:24) million(cid:11) and $28 million for the fiscal years ended (cid:37)une 30(cid:11) 2022(cid:11) 2021(cid:11) and 2020(cid:11) respectively(cid:11) in the
consolidated statements of income.
Revenue Recognition: (cid:47)he Company generates revenue by providing its customers (cid:76)ith fle(cid:77)ible and rigid pac(cid:64)aging(cid:11) serving a
variety of mar(cid:64)ets including food(cid:11) consumer products(cid:11) and healthcare end mar(cid:64)ets. (cid:47)he Company enters into a variety of
agreements (cid:76)ith customers(cid:11) including quality agreements(cid:11) pricing agreements(cid:11) and master supply agreements(cid:11) (cid:76)hich outline the
terms under (cid:76)hich the Company does business (cid:76)ith a specific customer. (cid:47)he Company also sells to some customers solely
based on purchase orders. (cid:47)he Company has concluded for the vast ma(cid:63)ority of its revenues(cid:11) that its contracts (cid:76)ith customers
are either a purchase order or the combination of a purchase order (cid:76)ith a master supply agreement. All revenue recogni(cid:79)ed in
the consolidated statements of income is considered to be revenue from contracts (cid:76)ith customers.
(cid:47)he Company typically satisfies the obligation to provide pac(cid:64)aging to customers at a point in time upon shipment
(cid:76)hen control is transferred to customers. (cid:45)evenue is recogni(cid:79)ed net of allo(cid:76)ances for returns and customer claims and any
ta(cid:77)es collected from customers(cid:11) (cid:76)hich are subsequently remitted to governmental authorities. (cid:47)he Company does not have any
material contract assets or contract liabilities. (cid:47)he Company disaggregates revenue based on geography. (cid:31)isaggregation of
revenue is presented in (cid:41)ote 21(cid:11) "Segments."
Si(cid:43)(cid:50)ifi(cid:39)a(cid:50)(cid:56) (cid:24)(cid:57)(cid:40)(cid:43)me(cid:50)(cid:56)s
(cid:31)etermining (cid:76)hether products and services are considered distinct performance obligations that should be accounted
for separately versus together may require significant (cid:63)udgment. (cid:47)he Company identified potential performance obligations in
its customer master supply agreements and determined that none of them are capable of being distinct as the customer can only
benefit from the supplied pac(cid:64)aging. (cid:47)herefore(cid:11) the Company has concluded that it has one performance obligation to supply
pac(cid:64)aging to customers.
(cid:47)he Company may provide variable consideration in several forms(cid:11) (cid:76)hich are determined through its agreements (cid:76)ith
customers. (cid:47)he Company can offer prompt payment discounts(cid:11) sales rebates(cid:11) or other incentive payments to customers. Sales
rebates and other incentive payments are typically a(cid:76)arded upon achievement of certain performance metrics(cid:11) including
volume. (cid:47)he Company accounts for variable consideration using the most li(cid:64)ely amount method. (cid:47)he Company utili(cid:79)es
forecasted sales data and rebate percentages specific to each customer agreement and updates its (cid:63)udgment of the amounts to
(cid:76)hich the customer is entitled each period.
(cid:47)he Company enters into long(cid:12)term agreements (cid:76)ith certain customers(cid:11) under (cid:76)hich it is obligated to ma(cid:64)e various
up(cid:12)front payments for (cid:76)hich it e(cid:77)pects to receive a benefit in e(cid:77)cess of the cost over the term of the contract. (cid:47)hese up(cid:12)front
payments are deferred and reflected in prepaid e(cid:77)penses and other current assets or other non(cid:12)current assets on its consolidated
balance sheets. Contract incentives are typically recogni(cid:79)ed as a reduction to revenue over the term of the customer agreement.
(cid:30)ra(cid:39)(cid:56)i(cid:39)a(cid:48) (cid:19)x(cid:52)e(cid:40)ie(cid:50)(cid:56)s
(cid:47)he Company sells primarily through its direct sales force. Any e(cid:77)ternal sales commissions are e(cid:77)pensed (cid:76)hen
incurred because the amorti(cid:79)ation period (cid:76)ould be one year or less. E(cid:77)ternal sales commission e(cid:77)pense is included in selling(cid:11)
general(cid:11) and administrative e(cid:77)penses in the consolidated statements of income.
55
Form 10-K
56
(cid:38)ote 2 - Significant Accounting Policies
Basis of Presentation and Principles of Consolidation: (cid:47)he consolidated financial statements include the accounts of the
Company and subsidiaries for (cid:76)hich the Company has a controlling financial interest. All significant intercompany transactions
and balances have been eliminated. (cid:47)he consolidated financial statements are prepared in accordance (cid:76)ith accounting principles
generally accepted in the (cid:48)nited States of America ("(cid:48).S. (cid:34)AA(cid:43)").
Certain amounts in the Company(cid:6)s notes to consolidated financial statements may not add or recalculate due to
rounding.
Business Combinations: (cid:47)he Company uses the acquisition method of accounting(cid:11) (cid:76)hich requires separate recognition of
assets acquired and liabilities assumed from good(cid:76)ill(cid:11) at the acquisition date fair values. (cid:34)ood(cid:76)ill as of the acquisition date is
measured as the e(cid:77)cess of consideration transferred and the fair value of any non(cid:12)controlling interests in the acquiree over the
net of the acquisition date fair values of the assets acquired and liabilities assumed. (cid:31)uring the measurement period(cid:11) (cid:76)hich may
be up to one year from the acquisition date(cid:11) the Company has the ability to record ad(cid:63)ustments to the assets acquired and
liabilities assumed (cid:76)ith the corresponding offset to good(cid:76)ill. (cid:48)pon the conclusion of the measurement period or final
determination of the values of assets acquired or liabilities assumed(cid:11) (cid:76)hichever comes first(cid:11) any subsequent ad(cid:63)ustments are
recorded in the consolidated statements of income.
(cid:32)eld for Sale and Discontinued Operations: (cid:47)he Company classifies assets and liabilities (the "disposal group") as held for
sale in the period (cid:76)hen all of the relevant criteria to be classified as held for sale are met. Criteria include management
commitment to sell the disposal group in its present condition and the sale being deemed probable of being completed (cid:76)ithin
one year. Assets held for sale are reported at the lo(cid:76)er of their carrying value or fair value less cost to sell. Fair value is
determined based on management(cid:89)s assessment of indicative bids(cid:11) a mar(cid:64)et multiples model in (cid:76)hich a mar(cid:64)et multiple is
applied to forecasted earnings before interest(cid:11) ta(cid:77)es(cid:11) depreciation(cid:11) and amorti(cid:79)ation ((cid:86)EBI(cid:47)(cid:31)A(cid:87))(cid:11) discounted cash flo(cid:76)s(cid:11)
appraised values or management(cid:6)s estimates(cid:11) depending on the specific situation. Any loss resulting from the measurement is
recogni(cid:79)ed in the period the held for sale criteria are met. If the disposal group meets the definition of a business(cid:11) the good(cid:76)ill
(cid:76)ithin the reporting unit is allocated to the disposal group based on its relative fair value. (cid:47)he Company assesses the fair value
of a disposal group(cid:11) less any costs to sell(cid:11) each reporting period it remains classified as held for sale and reports any subsequent
changes as an ad(cid:63)ustment to the carrying value of the disposal group(cid:11) as long as the ne(cid:76) carrying value does not e(cid:77)ceed the
initial carrying value of the disposal group. Assets held for sale are not amorti(cid:79)ed or depreciated. (cid:47)he Company recorded an
impairment charge on assets held for sale of $(cid:24)0 million for the fiscal year ended (cid:37)une 30(cid:11) 2022.
A disposal group that represents a strategic shift to the Company or is acquired (cid:76)ith the intention to sell is reflected as
a discontinued operation on the consolidated statements of income and prior periods are recast to reflect the earnings or losses
as income from discontinued operations. (cid:47)he consolidated financial statements and related notes reflect the three plants in
Europe acquired as part of the Bemis acquisition as a discontinued operation in fiscal year 201(cid:24) as the Company agreed to
divest of these plants as a condition of approval from the European Commission. (cid:47)he plants (cid:76)ere divested in the first quarter of
fiscal year 2020.
discontinued operations.
See (cid:41)ote 6(cid:11) "(cid:35)eld for Sale and (cid:31)iscontinued Operations(cid:11)" for more information on assets held for sale and
Estimates and Assumptions Re(cid:67)uired: (cid:47)he preparation of financial statements in conformity (cid:76)ith (cid:48).S. (cid:34)AA(cid:43) requires
management to ma(cid:64)e estimates and assumptions that affect the reported amounts of assets and liabilities at the date of the
consolidated financial statements and the reported amounts of revenues and e(cid:77)penses during the reporting periods.
(cid:47)hese estimates are based on historical e(cid:77)perience and various assumptions believed to be reasonable under the
circumstances. (cid:40)anagement evaluates these estimates on an ongoing basis and ad(cid:63)usts or revises the estimates as circumstances
change. As future events and their impacts cannot be determined (cid:76)ith precision(cid:11) actual results may differ from these estimates.
In the opinion of management(cid:11) the consolidated financial statements reflect all ad(cid:63)ustments necessary to fairly present the
results of the periods presented.
(cid:44)ranslation of Foreign Currencies: (cid:47)he reporting currency of the Company is the (cid:48).S. dollar. (cid:47)he functional currency of the
Company(cid:89)s subsidiaries is generally the local currency of each entity. (cid:47)ransactions in currencies other than the functional
currency of the entity are recorded at the rates of e(cid:77)change prevailing at the date of the transaction. (cid:40)onetary assets and
liabilities in currencies other than the entity(cid:89)s functional currency are remeasured at the e(cid:77)change rate as of the balance sheet
date to the entity(cid:89)s functional currency. Foreign currency transaction gains and losses related to short(cid:12)term and long(cid:12)term debt
are recorded in other non(cid:12)operating income(cid:11) net(cid:11) in the consolidated statements of income and the net gains or net losses are not
material in any of the periods presented. All other foreign currency transaction gains and losses are recorded in other income(cid:11)
net in the consolidated statements of income. (cid:47)hese foreign currency transaction net gains or net losses amounted to a net gain
of $1(cid:24) million(cid:11) a net loss of $4 million(cid:11) and a net gain of $21 million during the fiscal years ended (cid:37)une 30(cid:11) 2022(cid:11) 2021(cid:11) and
2020(cid:11) respectively.
(cid:48)pon consolidation(cid:11) the results of operations of subsidiaries (cid:76)hose functional currency is other than the reporting
currency of the Company are translated using average e(cid:77)change rates in effect during each year. Assets and liabilities of
operations (cid:76)ith a functional currency other than the (cid:48).S. dollar are translated at the e(cid:77)change rate as of the balance sheet date(cid:11)
(cid:76)hile equity balances are translated at historical rates. (cid:47)ranslation gains and losses are reported in accumulated other
comprehensive loss as a component of shareholders(cid:89) equity.
(cid:32)ighly Inflationary Accounting: A highly inflationary economy is defined as an economy (cid:76)ith a cumulative inflation rate of
appro(cid:77)imately 100 percent or more over a three(cid:12)year period. As of (cid:37)uly 1(cid:11) 2018(cid:11) the Argentine economy (cid:76)as designated as
highly inflationary for accounting purposes. Accordingly(cid:11) the (cid:48).S. dollar replaced the Argentine peso as the functional currency
for the Company(cid:6)s subsidiaries in Argentina. (cid:47)he impact of highly inflationary accounting on monetary balances (cid:76)as a loss of
$16 million(cid:11) $1(cid:24) million(cid:11) and $28 million for the fiscal years ended (cid:37)une 30(cid:11) 2022(cid:11) 2021(cid:11) and 2020(cid:11) respectively(cid:11) in the
consolidated statements of income.
Revenue Recognition: (cid:47)he Company generates revenue by providing its customers (cid:76)ith fle(cid:77)ible and rigid pac(cid:64)aging(cid:11) serving a
variety of mar(cid:64)ets including food(cid:11) consumer products(cid:11) and healthcare end mar(cid:64)ets. (cid:47)he Company enters into a variety of
agreements (cid:76)ith customers(cid:11) including quality agreements(cid:11) pricing agreements(cid:11) and master supply agreements(cid:11) (cid:76)hich outline the
terms under (cid:76)hich the Company does business (cid:76)ith a specific customer. (cid:47)he Company also sells to some customers solely
based on purchase orders. (cid:47)he Company has concluded for the vast ma(cid:63)ority of its revenues(cid:11) that its contracts (cid:76)ith customers
are either a purchase order or the combination of a purchase order (cid:76)ith a master supply agreement. All revenue recogni(cid:79)ed in
the consolidated statements of income is considered to be revenue from contracts (cid:76)ith customers.
(cid:47)he Company typically satisfies the obligation to provide pac(cid:64)aging to customers at a point in time upon shipment
(cid:76)hen control is transferred to customers. (cid:45)evenue is recogni(cid:79)ed net of allo(cid:76)ances for returns and customer claims and any
ta(cid:77)es collected from customers(cid:11) (cid:76)hich are subsequently remitted to governmental authorities. (cid:47)he Company does not have any
material contract assets or contract liabilities. (cid:47)he Company disaggregates revenue based on geography. (cid:31)isaggregation of
revenue is presented in (cid:41)ote 21(cid:11) "Segments."
Si(cid:43)(cid:50)ifi(cid:39)a(cid:50)(cid:56) (cid:24)(cid:57)(cid:40)(cid:43)me(cid:50)(cid:56)s
(cid:31)etermining (cid:76)hether products and services are considered distinct performance obligations that should be accounted
for separately versus together may require significant (cid:63)udgment. (cid:47)he Company identified potential performance obligations in
its customer master supply agreements and determined that none of them are capable of being distinct as the customer can only
benefit from the supplied pac(cid:64)aging. (cid:47)herefore(cid:11) the Company has concluded that it has one performance obligation to supply
pac(cid:64)aging to customers.
(cid:47)he Company may provide variable consideration in several forms(cid:11) (cid:76)hich are determined through its agreements (cid:76)ith
customers. (cid:47)he Company can offer prompt payment discounts(cid:11) sales rebates(cid:11) or other incentive payments to customers. Sales
rebates and other incentive payments are typically a(cid:76)arded upon achievement of certain performance metrics(cid:11) including
volume. (cid:47)he Company accounts for variable consideration using the most li(cid:64)ely amount method. (cid:47)he Company utili(cid:79)es
forecasted sales data and rebate percentages specific to each customer agreement and updates its (cid:63)udgment of the amounts to
(cid:76)hich the customer is entitled each period.
(cid:47)he Company enters into long(cid:12)term agreements (cid:76)ith certain customers(cid:11) under (cid:76)hich it is obligated to ma(cid:64)e various
up(cid:12)front payments for (cid:76)hich it e(cid:77)pects to receive a benefit in e(cid:77)cess of the cost over the term of the contract. (cid:47)hese up(cid:12)front
payments are deferred and reflected in prepaid e(cid:77)penses and other current assets or other non(cid:12)current assets on its consolidated
balance sheets. Contract incentives are typically recogni(cid:79)ed as a reduction to revenue over the term of the customer agreement.
(cid:30)ra(cid:39)(cid:56)i(cid:39)a(cid:48) (cid:19)x(cid:52)e(cid:40)ie(cid:50)(cid:56)s
(cid:47)he Company sells primarily through its direct sales force. Any e(cid:77)ternal sales commissions are e(cid:77)pensed (cid:76)hen
incurred because the amorti(cid:79)ation period (cid:76)ould be one year or less. E(cid:77)ternal sales commission e(cid:77)pense is included in selling(cid:11)
general(cid:11) and administrative e(cid:77)penses in the consolidated statements of income.
55
56
Amcor Annual Report 2022
(cid:47)he Company accounts for shipping and handling activities as fulfillment costs. Accordingly(cid:11) shipping and handling
Inventories(cid:11) net are summari(cid:79)ed as follo(cid:76)s(cid:25)
costs are classified as a component of cost of sales (cid:76)hile amounts billed to customers are classified as a component of net sales.
Form 10-K
57
(cid:47)he Company e(cid:77)cludes from the measurement of the transaction price all ta(cid:77)es assessed by a government authority
that are both imposed on and concurrent (cid:76)ith a specific revenue producing transaction and collected from the customer(cid:11)
including sales ta(cid:77)es(cid:11) value added ta(cid:77)es(cid:11) e(cid:77)cise ta(cid:77)es(cid:11) and use ta(cid:77)es. Accordingly(cid:11) the ta(cid:77) amounts are not included in net sales.
(cid:47)he Company does not ad(cid:63)ust the promised consideration for the time value of money for contracts (cid:76)here the
difference bet(cid:76)een the time of payment and performance is one year or less.
Research and Development: (cid:45)esearch and development e(cid:77)penses are e(cid:77)pensed as incurred.
Restructuring Costs: (cid:45)estructuring costs are recogni(cid:79)ed (cid:76)hen the liability is incurred. (cid:47)he Company calculates severance
obligations based on its standard customary practices. Accordingly(cid:11) the Company records provisions for severance (cid:76)hen
probable and estimable and the Company has committed to the restructuring plan. In the absence of a standard customary
practice or established local practice(cid:11) liabilities for severance are recogni(cid:79)ed (cid:76)hen incurred. If fi(cid:77)ed assets become impaired as
a result of the Company(cid:89)s restructuring efforts(cid:11) these assets are (cid:76)ritten do(cid:76)n to their fair value less costs to sell(cid:11) as the
Company commits to dispose of them and they are no longer in use. (cid:31)epreciation is accelerated on fi(cid:77)ed assets for the period of
time the asset continues to be used until the asset ceases to be used. Other restructuring costs(cid:11) including costs to relocate
equipment(cid:11) are generally recorded as the cost is incurred or the service is provided. See (cid:41)ote 7(cid:11) "(cid:45)estructuring(cid:11)" for more
information on the Company(cid:89)s restructuring plans.
Cash, Cash E(cid:67)uivalents, and Restricted Cash: (cid:47)he Company considers all highly liquid investments(cid:11) (cid:76)ith a maturity of three
months or less (cid:76)hen purchased(cid:11) to be cash equivalents. Cash equivalents include demand deposits that can be readily liquidated
(cid:76)ithout penalty at the Company(cid:89)s option. Cash equivalents are carried at cost (cid:76)hich appro(cid:77)imates fair mar(cid:64)et value. (cid:47)he
Company had restricted cash of $8 million and $23 million at (cid:37)une 30(cid:11) 2022 and 2021(cid:11) respectively(cid:11) (cid:76)hich (cid:76)as held in a share
trust associated (cid:76)ith Company share(cid:12)based payment obligations.
(cid:44)rade Receivables, net of allowance for doubtful accounts ((cid:2)(cid:44)rade accounts receivable, net(cid:2)): (cid:47)rade accounts receivable(cid:11)
net(cid:11) are stated at the amount the Company e(cid:77)pects to collect(cid:11) (cid:76)hich is net of an allo(cid:76)ance for sales returns and the estimated
losses resulting from the inability of its customers to ma(cid:64)e required payments. (cid:47)he allo(cid:76)ance for doubtful accounts is estimated
based on the current e(cid:77)pected credit loss model ("CECL") and it incorporates information about past events(cid:11) current conditions(cid:11)
and reasonable and supportable forecasts of future economic conditions. (cid:50)hen determining the collectability of specific
customer accounts(cid:11) a number of factors are evaluated(cid:11) including(cid:25) customer credit(cid:76)orthiness(cid:11) past transaction history (cid:76)ith the
customer(cid:11) and changes in customer payment terms or practices. In addition(cid:11) overall historical collection e(cid:77)perience(cid:11) current
economic industry trends(cid:11) and a revie(cid:76) of the current status of trade accounts receivable are considered (cid:76)hen determining the
required allo(cid:76)ance for doubtful accounts. Changes in allo(cid:76)ance for doubtful accounts (cid:76)ere not material for fiscal years ended
(cid:37)une 30(cid:11) 2022(cid:11) 2021(cid:11) and 2020.
(cid:47)he Company enters into factoring arrangements from time to time(cid:11) including customer(cid:12)based supply(cid:12)chain financing
programs(cid:11) to sell trade receivables to third(cid:12)party financial institutions. Agreements (cid:76)hich result in true sales of the transferred
receivables(cid:11) (cid:76)hich occur (cid:76)hen receivables are transferred (cid:76)ithout recourse to the Company(cid:11) are reflected as a reduction of trade
receivables(cid:11) net on the consolidated balance sheets and the proceeds are included in the cash flo(cid:76)s from operating activities in
the consolidated statements of cash flo(cid:76)s. Agreements that allo(cid:76) the Company to maintain effective control over the
transferred receivables and (cid:76)hich do not qualify as a true sale are accounted for as secured borro(cid:76)ings and recorded on the
consolidated balance sheets (cid:76)ithin trade receivables(cid:11) net and short(cid:12)term debt. (cid:47)he e(cid:77)penses associated (cid:76)ith receivables
factoring are recorded in the consolidated statements of income primarily as a reduction of net sales. (cid:47)he Company did not
factor any trade receivables in fiscal years 2022 and 2021 (cid:76)hich did not qualify as true sales of the receivables.
Inventories, net: Inventories are stated at the lo(cid:76)er of cost and net reali(cid:79)able value. (cid:47)he cost of inventories is based upon the
first(cid:12)in(cid:11) first(cid:12)out ("FIFO") method or average cost method. Costs related to inventories include ra(cid:76) materials(cid:11) direct labor and
manufacturing overhead.
((cid:3) in millions)
(cid:45)a(cid:76) materials and supplies
(cid:50)or(cid:64) in process and finished goods
Less(cid:25) inventory reserves
Inventories, net
June 30, 2022
June 30, 2021
$
(cid:3)
1(cid:11)161 $
1(cid:11)38(cid:24)
(111)
2,(cid:18)3(cid:23) (cid:3)
(cid:24)05
1(cid:11)1(cid:24)3
(107)
1,(cid:23)(cid:23)1
Property, Plant, and E(cid:67)uipment, (cid:38)et ((cid:2)PP(cid:5)E(cid:2)): (cid:43)(cid:43)(cid:5)E is carried at cost less accumulated depreciation and impairment and
includes e(cid:77)penditures for ne(cid:76) facilities and equipment and those costs (cid:76)hich substantially increase the useful lives or capacity
of e(cid:77)isting (cid:43)(cid:43)(cid:5)E. Cost of constructed assets includes capitali(cid:79)ed interest incurred during the construction period. (cid:40)aintenance
and repairs that do not improve efficiency or e(cid:77)tend economic life are e(cid:77)pensed as incurred.
(cid:43)(cid:43)(cid:5)E(cid:11) including assets held under finance leases(cid:11) is depreciated using the straight(cid:12)line method over the estimated
useful lives of assets or(cid:11) in the case of leasehold improvements and finance leases(cid:11) over the period of the lease or useful life of
the asset as described belo(cid:76). (cid:47)he Company periodically revie(cid:76)s these estimated useful lives and(cid:11) (cid:76)hen appropriate(cid:11) changes
are made prospectively.
Leasehold land
Land improvements
Buildings
(cid:40)achinery and equipment
Finance leases
Over lease term
(cid:48)p to 30 years
(cid:48)p to 45 years
(cid:48)p to 25 years
Lease term or 5 (cid:12) 25 years
Impairment of Long-lived Assets: (cid:47)he Company revie(cid:76)s long(cid:12)lived assets(cid:11) primarily (cid:43)(cid:43)(cid:5)E and certain identifiable intangible
assets (cid:76)ith finite lives(cid:11) for impairment (cid:76)hen facts or circumstances indicate the carrying amount of an asset or asset group may
not be recoverable. If impairment indicators are present and the estimated future undiscounted cash flo(cid:76)s are less than the
carrying value of the assets(cid:11) the carrying values are reduced to the estimated fair value. Fair values are determined based on
quoted mar(cid:64)et values(cid:11) discounted cash flo(cid:76)s(cid:11) or e(cid:77)ternal appraisals(cid:11) as applicable.
Impairment of long(cid:12)lived assets recogni(cid:79)ed in the consolidated statements of income(cid:11) e(cid:77)cluding assets held for sale(cid:11)
(cid:76)ere as follo(cid:76)s(cid:25)
((cid:3) in millions)
Selling(cid:11) general(cid:11) and administrative e(cid:77)penses
(cid:45)estructuring(cid:11) impairment(cid:11) and related e(cid:77)penses(cid:11) net
(cid:44)otal impairment losses recogni(cid:76)ed in the consolidated statements of
income
Years ended June 30,
2022
2021
2020
$
(cid:3)
1 $
42
(cid:18)3 (cid:3)
1 $
(cid:24)
10 (cid:3)
1
21
22
Leases: (cid:47)he Company enters into leasing arrangements for certain manufacturing sites(cid:11) offices(cid:11) (cid:76)arehouses(cid:11) land(cid:11) vehicles(cid:11) and
equipment. (cid:47)he Company determines at the inception of the contract (cid:76)hether the contract is or contains a lease. A contract is a
lease if it conveys the right to control an identified asset for a period of time in e(cid:77)change for consideration.
For leases (cid:76)ith an original term of more than t(cid:76)elve months(cid:11) the Company recogni(cid:79)es a right(cid:12)of(cid:12)use ((cid:86)(cid:45)O(cid:48)(cid:87)) asset
and a lease liability. Short(cid:12)term leases (cid:76)ith a term of t(cid:76)elve months or less are not recorded on the consolidated balance sheets
and the related e(cid:77)pense is recogni(cid:79)ed on a straight(cid:12)line basis over the term of the lease.
Lease liabilities are recogni(cid:79)ed at the commencement date based on the present value of the remaining lease payments
over the lease terms(cid:11) (cid:76)hich include any noncancellable lease terms and any rene(cid:76)al periods that the Company is reasonably
certain to e(cid:77)ercise. A significant portion of the leases of the Company includes an option or options to e(cid:77)tend the lease term.
(cid:47)he Company re(cid:12)evaluates its leases on a regular basis to consider the economic and strategic incentives of e(cid:77)ercising lease
rene(cid:76)al options. As the implicit rates in Company(cid:6)s leases generally cannot be readily determined(cid:11) the Company uses estimates
of its incremental borro(cid:76)ing rate as the discount rates to determine the lease liabilities.
57
Amcor Annual Report 2022
58
57
Form 10-K
58
1(cid:11)161 $
June 30, 2021
(cid:24)05
June 30, 2022
$
1(cid:11)38(cid:24)
(111)
2,(cid:18)3(cid:23) (cid:3)
1(cid:11)1(cid:24)3
(107)
1,(cid:23)(cid:23)1
(cid:3)
(cid:47)he Company accounts for shipping and handling activities as fulfillment costs. Accordingly(cid:11) shipping and handling
Inventories(cid:11) net are summari(cid:79)ed as follo(cid:76)s(cid:25)
((cid:3) in millions)
(cid:45)a(cid:76) materials and supplies
(cid:50)or(cid:64) in process and finished goods
Less(cid:25) inventory reserves
Inventories, net
costs are classified as a component of cost of sales (cid:76)hile amounts billed to customers are classified as a component of net sales.
(cid:47)he Company e(cid:77)cludes from the measurement of the transaction price all ta(cid:77)es assessed by a government authority
that are both imposed on and concurrent (cid:76)ith a specific revenue producing transaction and collected from the customer(cid:11)
including sales ta(cid:77)es(cid:11) value added ta(cid:77)es(cid:11) e(cid:77)cise ta(cid:77)es(cid:11) and use ta(cid:77)es. Accordingly(cid:11) the ta(cid:77) amounts are not included in net sales.
(cid:47)he Company does not ad(cid:63)ust the promised consideration for the time value of money for contracts (cid:76)here the
difference bet(cid:76)een the time of payment and performance is one year or less.
Research and Development: (cid:45)esearch and development e(cid:77)penses are e(cid:77)pensed as incurred.
Restructuring Costs: (cid:45)estructuring costs are recogni(cid:79)ed (cid:76)hen the liability is incurred. (cid:47)he Company calculates severance
obligations based on its standard customary practices. Accordingly(cid:11) the Company records provisions for severance (cid:76)hen
probable and estimable and the Company has committed to the restructuring plan. In the absence of a standard customary
practice or established local practice(cid:11) liabilities for severance are recogni(cid:79)ed (cid:76)hen incurred. If fi(cid:77)ed assets become impaired as
a result of the Company(cid:89)s restructuring efforts(cid:11) these assets are (cid:76)ritten do(cid:76)n to their fair value less costs to sell(cid:11) as the
Company commits to dispose of them and they are no longer in use. (cid:31)epreciation is accelerated on fi(cid:77)ed assets for the period of
time the asset continues to be used until the asset ceases to be used. Other restructuring costs(cid:11) including costs to relocate
equipment(cid:11) are generally recorded as the cost is incurred or the service is provided. See (cid:41)ote 7(cid:11) "(cid:45)estructuring(cid:11)" for more
information on the Company(cid:89)s restructuring plans.
Cash, Cash E(cid:67)uivalents, and Restricted Cash: (cid:47)he Company considers all highly liquid investments(cid:11) (cid:76)ith a maturity of three
months or less (cid:76)hen purchased(cid:11) to be cash equivalents. Cash equivalents include demand deposits that can be readily liquidated
(cid:76)ithout penalty at the Company(cid:89)s option. Cash equivalents are carried at cost (cid:76)hich appro(cid:77)imates fair mar(cid:64)et value. (cid:47)he
Company had restricted cash of $8 million and $23 million at (cid:37)une 30(cid:11) 2022 and 2021(cid:11) respectively(cid:11) (cid:76)hich (cid:76)as held in a share
trust associated (cid:76)ith Company share(cid:12)based payment obligations.
(cid:44)rade Receivables, net of allowance for doubtful accounts ((cid:2)(cid:44)rade accounts receivable, net(cid:2)): (cid:47)rade accounts receivable(cid:11)
net(cid:11) are stated at the amount the Company e(cid:77)pects to collect(cid:11) (cid:76)hich is net of an allo(cid:76)ance for sales returns and the estimated
losses resulting from the inability of its customers to ma(cid:64)e required payments. (cid:47)he allo(cid:76)ance for doubtful accounts is estimated
based on the current e(cid:77)pected credit loss model ("CECL") and it incorporates information about past events(cid:11) current conditions(cid:11)
and reasonable and supportable forecasts of future economic conditions. (cid:50)hen determining the collectability of specific
customer accounts(cid:11) a number of factors are evaluated(cid:11) including(cid:25) customer credit(cid:76)orthiness(cid:11) past transaction history (cid:76)ith the
customer(cid:11) and changes in customer payment terms or practices. In addition(cid:11) overall historical collection e(cid:77)perience(cid:11) current
economic industry trends(cid:11) and a revie(cid:76) of the current status of trade accounts receivable are considered (cid:76)hen determining the
required allo(cid:76)ance for doubtful accounts. Changes in allo(cid:76)ance for doubtful accounts (cid:76)ere not material for fiscal years ended
(cid:37)une 30(cid:11) 2022(cid:11) 2021(cid:11) and 2020.
(cid:47)he Company enters into factoring arrangements from time to time(cid:11) including customer(cid:12)based supply(cid:12)chain financing
programs(cid:11) to sell trade receivables to third(cid:12)party financial institutions. Agreements (cid:76)hich result in true sales of the transferred
receivables(cid:11) (cid:76)hich occur (cid:76)hen receivables are transferred (cid:76)ithout recourse to the Company(cid:11) are reflected as a reduction of trade
receivables(cid:11) net on the consolidated balance sheets and the proceeds are included in the cash flo(cid:76)s from operating activities in
the consolidated statements of cash flo(cid:76)s. Agreements that allo(cid:76) the Company to maintain effective control over the
transferred receivables and (cid:76)hich do not qualify as a true sale are accounted for as secured borro(cid:76)ings and recorded on the
consolidated balance sheets (cid:76)ithin trade receivables(cid:11) net and short(cid:12)term debt. (cid:47)he e(cid:77)penses associated (cid:76)ith receivables
factoring are recorded in the consolidated statements of income primarily as a reduction of net sales. (cid:47)he Company did not
factor any trade receivables in fiscal years 2022 and 2021 (cid:76)hich did not qualify as true sales of the receivables.
Inventories, net: Inventories are stated at the lo(cid:76)er of cost and net reali(cid:79)able value. (cid:47)he cost of inventories is based upon the
first(cid:12)in(cid:11) first(cid:12)out ("FIFO") method or average cost method. Costs related to inventories include ra(cid:76) materials(cid:11) direct labor and
manufacturing overhead.
Property, Plant, and E(cid:67)uipment, (cid:38)et ((cid:2)PP(cid:5)E(cid:2)): (cid:43)(cid:43)(cid:5)E is carried at cost less accumulated depreciation and impairment and
includes e(cid:77)penditures for ne(cid:76) facilities and equipment and those costs (cid:76)hich substantially increase the useful lives or capacity
of e(cid:77)isting (cid:43)(cid:43)(cid:5)E. Cost of constructed assets includes capitali(cid:79)ed interest incurred during the construction period. (cid:40)aintenance
and repairs that do not improve efficiency or e(cid:77)tend economic life are e(cid:77)pensed as incurred.
(cid:43)(cid:43)(cid:5)E(cid:11) including assets held under finance leases(cid:11) is depreciated using the straight(cid:12)line method over the estimated
useful lives of assets or(cid:11) in the case of leasehold improvements and finance leases(cid:11) over the period of the lease or useful life of
the asset as described belo(cid:76). (cid:47)he Company periodically revie(cid:76)s these estimated useful lives and(cid:11) (cid:76)hen appropriate(cid:11) changes
are made prospectively.
Leasehold land
Land improvements
Buildings
(cid:40)achinery and equipment
Finance leases
Over lease term
(cid:48)p to 30 years
(cid:48)p to 45 years
(cid:48)p to 25 years
Lease term or 5 (cid:12) 25 years
Impairment of Long-lived Assets: (cid:47)he Company revie(cid:76)s long(cid:12)lived assets(cid:11) primarily (cid:43)(cid:43)(cid:5)E and certain identifiable intangible
assets (cid:76)ith finite lives(cid:11) for impairment (cid:76)hen facts or circumstances indicate the carrying amount of an asset or asset group may
not be recoverable. If impairment indicators are present and the estimated future undiscounted cash flo(cid:76)s are less than the
carrying value of the assets(cid:11) the carrying values are reduced to the estimated fair value. Fair values are determined based on
quoted mar(cid:64)et values(cid:11) discounted cash flo(cid:76)s(cid:11) or e(cid:77)ternal appraisals(cid:11) as applicable.
Impairment of long(cid:12)lived assets recogni(cid:79)ed in the consolidated statements of income(cid:11) e(cid:77)cluding assets held for sale(cid:11)
(cid:76)ere as follo(cid:76)s(cid:25)
((cid:3) in millions)
Selling(cid:11) general(cid:11) and administrative e(cid:77)penses
(cid:45)estructuring(cid:11) impairment(cid:11) and related e(cid:77)penses(cid:11) net
(cid:44)otal impairment losses recogni(cid:76)ed in the consolidated statements of
income
Years ended June 30,
2021
2020
2022
$
(cid:3)
1 $
42
(cid:18)3 (cid:3)
1 $
(cid:24)
10 (cid:3)
1
21
22
Leases: (cid:47)he Company enters into leasing arrangements for certain manufacturing sites(cid:11) offices(cid:11) (cid:76)arehouses(cid:11) land(cid:11) vehicles(cid:11) and
equipment. (cid:47)he Company determines at the inception of the contract (cid:76)hether the contract is or contains a lease. A contract is a
lease if it conveys the right to control an identified asset for a period of time in e(cid:77)change for consideration.
For leases (cid:76)ith an original term of more than t(cid:76)elve months(cid:11) the Company recogni(cid:79)es a right(cid:12)of(cid:12)use ((cid:86)(cid:45)O(cid:48)(cid:87)) asset
and a lease liability. Short(cid:12)term leases (cid:76)ith a term of t(cid:76)elve months or less are not recorded on the consolidated balance sheets
and the related e(cid:77)pense is recogni(cid:79)ed on a straight(cid:12)line basis over the term of the lease.
Lease liabilities are recogni(cid:79)ed at the commencement date based on the present value of the remaining lease payments
over the lease terms(cid:11) (cid:76)hich include any noncancellable lease terms and any rene(cid:76)al periods that the Company is reasonably
certain to e(cid:77)ercise. A significant portion of the leases of the Company includes an option or options to e(cid:77)tend the lease term.
(cid:47)he Company re(cid:12)evaluates its leases on a regular basis to consider the economic and strategic incentives of e(cid:77)ercising lease
rene(cid:76)al options. As the implicit rates in Company(cid:6)s leases generally cannot be readily determined(cid:11) the Company uses estimates
of its incremental borro(cid:76)ing rate as the discount rates to determine the lease liabilities.
57
58
Amcor Annual Report 2022
Form 10-K
59
Certain leases require variable payments that are dependent on usage(cid:11) output(cid:11) or other factors. (cid:49)ariable lease payments
that do not depend on an inde(cid:77) or rate are e(cid:77)cluded from lease payments in the measurement of the (cid:45)O(cid:48) lease asset and lease
liability and recogni(cid:79)ed as an e(cid:77)pense in the period in (cid:76)hich the obligation for the payments occur.
(cid:31)oodwill: (cid:34)ood(cid:76)ill represents the e(cid:77)cess of cost over the fair value of net assets acquired in a business combination. (cid:34)ood(cid:76)ill
is not amorti(cid:79)ed(cid:11) but instead tested annually or (cid:76)henever events and circumstances indicate an impairment may have occurred
during the fiscal year. Among the factors that could trigger an impairment revie(cid:76) are a reporting unit(cid:89)s operating results
significantly declining relative to its operating plan or historical performance(cid:11) and competitive pressures and changes in the
general mar(cid:64)ets in (cid:76)hich it operates.
All good(cid:76)ill is assigned to a reporting unit(cid:11) (cid:76)hich is defined as the operating segment. In con(cid:63)unction (cid:76)ith the
acquisition of Bemis(cid:11) the Company reassessed its segment reporting structure in the first fiscal quarter of 2020 and elected to
disaggregate the Fle(cid:77)ibles Americas operating segment into Fle(cid:77)ibles (cid:41)orth America and Fle(cid:77)ibles Latin America. (cid:50)ith this
change(cid:11) the Company has si(cid:77) reporting units (cid:76)ith good(cid:76)ill that are assessed for potential impairment.
In performing the required impairment tests(cid:11) the Company has the option to first assess qualitative factors to determine
if it is necessary to perform a quantitative assessment for good(cid:76)ill impairment. If the qualitative assessment concludes that it is
more(cid:12)li(cid:64)ely(cid:12)than(cid:12)not that the fair value of a reporting unit is less than its carrying value(cid:11) a quantitative assessment is performed.
(cid:47)he Company(cid:6)s quantitative assessment utili(cid:79)es present value (discounted cash flo(cid:76)) methods to determine the fair value of the
reporting units (cid:76)ith good(cid:76)ill. (cid:31)etermining fair value using discounted cash flo(cid:76)s requires considerable (cid:63)udgment and is
sensitive to changes in underlying assumptions and mar(cid:64)et factors. (cid:38)ey assumptions relate to revenue gro(cid:76)th(cid:11) pro(cid:63)ected
operating income gro(cid:76)th(cid:11) terminal values(cid:11) and discount rates. If current e(cid:77)pectations of future gro(cid:76)th rates and margins are not
met(cid:11) or if mar(cid:64)et factors outside of Amcor(cid:89)s control(cid:11) such as factors impacting the applicable discount rate(cid:11) or economic or
political conditions in (cid:64)ey mar(cid:64)ets change significantly(cid:11) then good(cid:76)ill allocated to one or more reporting units may be
impaired.
(cid:47)he Company performs its annual impairment analysis in the fourth fiscal quarter of each fiscal year.
A qualitative impairment analysis (cid:76)as performed in the fourth fiscal quarter for five of the Company(cid:6)s si(cid:77) reporting
units in fiscal year 2022 and 2021. (cid:47)he Company elected to perform a quantitative good(cid:76)ill impairment test for one Fle(cid:77)ibles
reporting unit in fiscal year 2022 and 2021(cid:11) and performed a quantitative impairment test for all of its reporting units in fiscal
year 2020. (cid:47)he Company(cid:89)s annual impairment analyses for all three fiscal years concluded that good(cid:76)ill (cid:76)as not impaired.
(cid:44)uantitative impairment analyses performed during the last three fiscal years concluded that the fair values of the reporting
units substantially e(cid:77)ceeded their carrying values. (cid:41)o reporting units failed the assessments noted above in the annual
impairment analysis for 2022.
(cid:47)he Company(cid:6)s decision to sell its three manufacturing facilities in (cid:45)ussia ((cid:86)(cid:45)ussian business(cid:87)) in the fourth quarter of
fiscal year 2022 and subsequent classification as held for sale (cid:76)as considered a triggering event (cid:76)hich required an additional
quantitative impairment test for one Fle(cid:77)ibles reporting unit to assess if good(cid:76)ill is impaired. Based on the quantitative
impairment test performed for this Fle(cid:77)ibles reporting unit(cid:11) the Company concluded that good(cid:76)ill (cid:76)as not impaired.
Additionally(cid:11) the Company considered (cid:76)hether any other events and(cid:14)or changes in circumstances had resulted in the li(cid:64)elihood
that the good(cid:76)ill of any of its other reporting units may have been impaired. (cid:40)anagement has determined that no such events
have occurred subsequent to the annual evaluation and as of (cid:37)une 30(cid:11) 2022.
Other Intangible Assets, (cid:38)et: Contractual or separable intangible assets that have finite useful lives are amorti(cid:79)ed against
income using the straight(cid:12)line method over their estimated useful lives(cid:11) (cid:76)hich range from 1 to 20 years. (cid:47)he straight(cid:12)line
method of amorti(cid:79)ation reflects an appropriate allocation of the costs of the intangible assets to earnings in proportion to the
amount of economic benefits obtained by the Company in each reporting period.
Costs incurred to develop soft(cid:76)are programs to be used solely to meet the Company(cid:6)s internal needs have been
capitali(cid:79)ed as computer soft(cid:76)are (cid:76)ithin other intangible assets.
Fair Value (cid:37)easurements: (cid:47)he fair values of the Company(cid:6)s financial assets and financial liabilities reflect the amounts that
(cid:76)ould be received to sell the assets or paid to transfer the liabilities in an orderly transaction bet(cid:76)een mar(cid:64)et participants at the
measurement date (e(cid:77)it price). (cid:47)he Company determines fair value based on a three(cid:12)tiered fair value hierarchy. (cid:47)he hierarchy
consists of(cid:25)
(cid:82)
(cid:82)
(cid:82)
Level 1(cid:25) fair value measurements represent e(cid:77)change(cid:12)traded securities (cid:76)hich are valued at quoted prices
(unad(cid:63)usted) in active mar(cid:64)ets for identical assets or liabilities that the Company has the ability to access as of
the reporting date(cid:26)
Level 2(cid:25) fair value measurements are determined using input prices that are directly observable for the asset
or liability or indirectly observable through corroboration (cid:76)ith observable mar(cid:64)et data(cid:26) and
Level 3(cid:25) fair value measurements are determined using unobservable inputs(cid:11) such as internally developed
pricing models for the asset or liability due to little or no mar(cid:64)et activity for the asset or liability.
Derivative Instruments: (cid:47)he Company recogni(cid:79)es all derivative instruments on the consolidated balance sheets at fair value.
(cid:47)he impact on earnings from recogni(cid:79)ing the fair values of these instruments depends on their intended use(cid:11) their hedge
designation and their effectiveness in offsetting changes in the fair values of the e(cid:77)posures they are hedging. (cid:31)erivatives not
designated as hedging instruments are ad(cid:63)usted to fair value through income. (cid:31)epending on the nature of derivatives designated
as hedging instruments(cid:11) changes in the fair value are either offset against the change in fair value of the hedged assets(cid:11)
liabilities(cid:11) or firm commitments through earnings or recogni(cid:79)ed in shareholders(cid:89) equity through other comprehensive income(cid:14)
(loss) until the hedged item is recogni(cid:79)ed. (cid:34)ains or losses(cid:11) if any(cid:11) related to the ineffective portion of any hedge are recogni(cid:79)ed
through earnings over the life of the hedging relationship.
See (cid:41)ote 12(cid:11) "(cid:31)erivative Instruments(cid:11)" for more information regarding specific derivative instruments included on the
Company(cid:89)s consolidated balance sheets(cid:11) such as for(cid:76)ard foreign currency e(cid:77)change contracts(cid:11) currency s(cid:76)ap contracts(cid:11) and
interest rate s(cid:76)ap arrangements(cid:11) among other derivative instruments.
Employee Benefit Plans: (cid:47)he Company sponsors various defined contribution plans to (cid:76)hich it ma(cid:64)es contributions on behalf
of employees. (cid:47)he e(cid:77)pense under such plans (cid:76)as $7(cid:24) million(cid:11) $68 million(cid:11) and $64 million for the fiscal years ended (cid:37)une 30(cid:11)
2022(cid:11) 2021(cid:11) and 2020(cid:11) respectively.
(cid:47)he Company sponsors a number of defined benefit plans that provide benefits to current and former employees. For
the company(cid:12)sponsored plans(cid:11) the relevant accounting guidance requires that management ma(cid:64)e certain assumptions relating to
the long(cid:12)term rate of return on plan assets(cid:11) discount rates used to determine the present value of future obligations and e(cid:77)penses(cid:11)
salary inflation rates(cid:11) mortality rates(cid:11) and other assumptions. (cid:47)he Company believes that the accounting estimates related to its
pension plans are critical accounting estimates because they are highly susceptible to change from period to period based on the
performance of plan assets(cid:11) actuarial valuations(cid:11) mar(cid:64)et conditions(cid:11) and contracted benefit changes. (cid:47)he selection of
assumptions is based on historical trends and (cid:64)no(cid:76)n economic and mar(cid:64)et conditions at the time of valuation(cid:11) as (cid:76)ell as
independent studies of trends performed by the Company(cid:89)s actuaries. (cid:35)o(cid:76)ever(cid:11) actual results may differ substantially from the
estimates that (cid:76)ere based on the critical assumptions.
(cid:47)he Company recogni(cid:79)es the funded status of each defined benefit pension plan in the consolidated balance sheets.
Each overfunded plan is recogni(cid:79)ed as an asset in employee benefit assets and each underfunded plan is recogni(cid:79)ed as a liability
in employee benefit obligations. (cid:43)ension plan liabilities are revalued annually(cid:11) or (cid:76)hen an event occurs that requires
remeasurement(cid:11) based on updated assumptions and information about the individuals covered by the plan. Accumulated
actuarial gains and losses in e(cid:77)cess of a 10 percent corridor and the prior service cost are amorti(cid:79)ed on a straight(cid:12)line basis from
the date recogni(cid:79)ed over the average remaining service period of active participants or over the average life e(cid:77)pectancy for
plans (cid:76)ith significant inactive participants. (cid:47)he service costs related to defined benefits are included in operating income. (cid:47)he
other components of net benefit cost other than service cost are recorded (cid:76)ithin other non(cid:12)operating income(cid:11) net in the
consolidated statements of income.
E(cid:67)uity (cid:37)ethod and Other Investments: Investments in ordinary shares of companies(cid:11) in (cid:76)hich the Company believes it
e(cid:77)ercises significant influence over operating and financial policies(cid:11) are accounted for using the equity method of accounting.
(cid:48)nder this method(cid:11) the investment is carried at cost and is ad(cid:63)usted to recogni(cid:79)e the investor(cid:89)s share of earnings or losses of the
investee after the date of acquisition and is ad(cid:63)usted for impairment (cid:76)henever it is determined that a decline in the fair value
belo(cid:76) the cost basis is other than temporary. (cid:47)he fair value of the investment then becomes the ne(cid:76) cost basis of the investment
and it is not ad(cid:63)usted for subsequent recoveries in fair value. (cid:47)he Company sold its equity investment in A(cid:40)(cid:49)I(cid:34) (cid:35)oldings
Limited ("A(cid:40)(cid:49)I(cid:34)") in the first quarter of fiscal year 2021(cid:11) refer to (cid:41)ote 8(cid:11) "Equity (cid:40)ethod and Other Investments."
All equity investments that do not result in consolidation and are not accounted for under the equity method are
measured at fair value (cid:76)ith unreali(cid:79)ed gains and losses related to mar(cid:64)(cid:12)to(cid:12)mar(cid:64)et ad(cid:63)ustments included in net income. (cid:47)he
Company utili(cid:79)es the measurement alternative for equity investments that do not have readily determinable fair values and
measures these investments at cost ad(cid:63)usted for impairments and observable price changes in orderly transactions. (cid:47)o date(cid:11)
investments not accounted for under the equity method are not material.
5(cid:24)
Amcor Annual Report 2022
60
59
Form 10-K
(cid:25)0
Certain leases require variable payments that are dependent on usage(cid:11) output(cid:11) or other factors. (cid:49)ariable lease payments
that do not depend on an inde(cid:77) or rate are e(cid:77)cluded from lease payments in the measurement of the (cid:45)O(cid:48) lease asset and lease
liability and recogni(cid:79)ed as an e(cid:77)pense in the period in (cid:76)hich the obligation for the payments occur.
(cid:31)oodwill: (cid:34)ood(cid:76)ill represents the e(cid:77)cess of cost over the fair value of net assets acquired in a business combination. (cid:34)ood(cid:76)ill
is not amorti(cid:79)ed(cid:11) but instead tested annually or (cid:76)henever events and circumstances indicate an impairment may have occurred
during the fiscal year. Among the factors that could trigger an impairment revie(cid:76) are a reporting unit(cid:89)s operating results
significantly declining relative to its operating plan or historical performance(cid:11) and competitive pressures and changes in the
general mar(cid:64)ets in (cid:76)hich it operates.
All good(cid:76)ill is assigned to a reporting unit(cid:11) (cid:76)hich is defined as the operating segment. In con(cid:63)unction (cid:76)ith the
acquisition of Bemis(cid:11) the Company reassessed its segment reporting structure in the first fiscal quarter of 2020 and elected to
disaggregate the Fle(cid:77)ibles Americas operating segment into Fle(cid:77)ibles (cid:41)orth America and Fle(cid:77)ibles Latin America. (cid:50)ith this
change(cid:11) the Company has si(cid:77) reporting units (cid:76)ith good(cid:76)ill that are assessed for potential impairment.
In performing the required impairment tests(cid:11) the Company has the option to first assess qualitative factors to determine
if it is necessary to perform a quantitative assessment for good(cid:76)ill impairment. If the qualitative assessment concludes that it is
more(cid:12)li(cid:64)ely(cid:12)than(cid:12)not that the fair value of a reporting unit is less than its carrying value(cid:11) a quantitative assessment is performed.
(cid:47)he Company(cid:6)s quantitative assessment utili(cid:79)es present value (discounted cash flo(cid:76)) methods to determine the fair value of the
reporting units (cid:76)ith good(cid:76)ill. (cid:31)etermining fair value using discounted cash flo(cid:76)s requires considerable (cid:63)udgment and is
sensitive to changes in underlying assumptions and mar(cid:64)et factors. (cid:38)ey assumptions relate to revenue gro(cid:76)th(cid:11) pro(cid:63)ected
operating income gro(cid:76)th(cid:11) terminal values(cid:11) and discount rates. If current e(cid:77)pectations of future gro(cid:76)th rates and margins are not
met(cid:11) or if mar(cid:64)et factors outside of Amcor(cid:89)s control(cid:11) such as factors impacting the applicable discount rate(cid:11) or economic or
political conditions in (cid:64)ey mar(cid:64)ets change significantly(cid:11) then good(cid:76)ill allocated to one or more reporting units may be
impaired.
(cid:47)he Company performs its annual impairment analysis in the fourth fiscal quarter of each fiscal year.
A qualitative impairment analysis (cid:76)as performed in the fourth fiscal quarter for five of the Company(cid:6)s si(cid:77) reporting
units in fiscal year 2022 and 2021. (cid:47)he Company elected to perform a quantitative good(cid:76)ill impairment test for one Fle(cid:77)ibles
reporting unit in fiscal year 2022 and 2021(cid:11) and performed a quantitative impairment test for all of its reporting units in fiscal
year 2020. (cid:47)he Company(cid:89)s annual impairment analyses for all three fiscal years concluded that good(cid:76)ill (cid:76)as not impaired.
(cid:44)uantitative impairment analyses performed during the last three fiscal years concluded that the fair values of the reporting
units substantially e(cid:77)ceeded their carrying values. (cid:41)o reporting units failed the assessments noted above in the annual
impairment analysis for 2022.
(cid:47)he Company(cid:6)s decision to sell its three manufacturing facilities in (cid:45)ussia ((cid:86)(cid:45)ussian business(cid:87)) in the fourth quarter of
fiscal year 2022 and subsequent classification as held for sale (cid:76)as considered a triggering event (cid:76)hich required an additional
quantitative impairment test for one Fle(cid:77)ibles reporting unit to assess if good(cid:76)ill is impaired. Based on the quantitative
impairment test performed for this Fle(cid:77)ibles reporting unit(cid:11) the Company concluded that good(cid:76)ill (cid:76)as not impaired.
Additionally(cid:11) the Company considered (cid:76)hether any other events and(cid:14)or changes in circumstances had resulted in the li(cid:64)elihood
that the good(cid:76)ill of any of its other reporting units may have been impaired. (cid:40)anagement has determined that no such events
have occurred subsequent to the annual evaluation and as of (cid:37)une 30(cid:11) 2022.
Other Intangible Assets, (cid:38)et: Contractual or separable intangible assets that have finite useful lives are amorti(cid:79)ed against
income using the straight(cid:12)line method over their estimated useful lives(cid:11) (cid:76)hich range from 1 to 20 years. (cid:47)he straight(cid:12)line
method of amorti(cid:79)ation reflects an appropriate allocation of the costs of the intangible assets to earnings in proportion to the
amount of economic benefits obtained by the Company in each reporting period.
Costs incurred to develop soft(cid:76)are programs to be used solely to meet the Company(cid:6)s internal needs have been
capitali(cid:79)ed as computer soft(cid:76)are (cid:76)ithin other intangible assets.
Fair Value (cid:37)easurements: (cid:47)he fair values of the Company(cid:6)s financial assets and financial liabilities reflect the amounts that
(cid:76)ould be received to sell the assets or paid to transfer the liabilities in an orderly transaction bet(cid:76)een mar(cid:64)et participants at the
measurement date (e(cid:77)it price). (cid:47)he Company determines fair value based on a three(cid:12)tiered fair value hierarchy. (cid:47)he hierarchy
consists of(cid:25)
(cid:82)
(cid:82)
(cid:82)
Level 1(cid:25) fair value measurements represent e(cid:77)change(cid:12)traded securities (cid:76)hich are valued at quoted prices
(unad(cid:63)usted) in active mar(cid:64)ets for identical assets or liabilities that the Company has the ability to access as of
the reporting date(cid:26)
Level 2(cid:25) fair value measurements are determined using input prices that are directly observable for the asset
or liability or indirectly observable through corroboration (cid:76)ith observable mar(cid:64)et data(cid:26) and
Level 3(cid:25) fair value measurements are determined using unobservable inputs(cid:11) such as internally developed
pricing models for the asset or liability due to little or no mar(cid:64)et activity for the asset or liability.
Derivative Instruments: (cid:47)he Company recogni(cid:79)es all derivative instruments on the consolidated balance sheets at fair value.
(cid:47)he impact on earnings from recogni(cid:79)ing the fair values of these instruments depends on their intended use(cid:11) their hedge
designation and their effectiveness in offsetting changes in the fair values of the e(cid:77)posures they are hedging. (cid:31)erivatives not
designated as hedging instruments are ad(cid:63)usted to fair value through income. (cid:31)epending on the nature of derivatives designated
as hedging instruments(cid:11) changes in the fair value are either offset against the change in fair value of the hedged assets(cid:11)
liabilities(cid:11) or firm commitments through earnings or recogni(cid:79)ed in shareholders(cid:89) equity through other comprehensive income(cid:14)
(loss) until the hedged item is recogni(cid:79)ed. (cid:34)ains or losses(cid:11) if any(cid:11) related to the ineffective portion of any hedge are recogni(cid:79)ed
through earnings over the life of the hedging relationship.
See (cid:41)ote 12(cid:11) "(cid:31)erivative Instruments(cid:11)" for more information regarding specific derivative instruments included on the
Company(cid:89)s consolidated balance sheets(cid:11) such as for(cid:76)ard foreign currency e(cid:77)change contracts(cid:11) currency s(cid:76)ap contracts(cid:11) and
interest rate s(cid:76)ap arrangements(cid:11) among other derivative instruments.
Employee Benefit Plans: (cid:47)he Company sponsors various defined contribution plans to (cid:76)hich it ma(cid:64)es contributions on behalf
of employees. (cid:47)he e(cid:77)pense under such plans (cid:76)as $7(cid:24) million(cid:11) $68 million(cid:11) and $64 million for the fiscal years ended (cid:37)une 30(cid:11)
2022(cid:11) 2021(cid:11) and 2020(cid:11) respectively.
(cid:47)he Company sponsors a number of defined benefit plans that provide benefits to current and former employees. For
the company(cid:12)sponsored plans(cid:11) the relevant accounting guidance requires that management ma(cid:64)e certain assumptions relating to
the long(cid:12)term rate of return on plan assets(cid:11) discount rates used to determine the present value of future obligations and e(cid:77)penses(cid:11)
salary inflation rates(cid:11) mortality rates(cid:11) and other assumptions. (cid:47)he Company believes that the accounting estimates related to its
pension plans are critical accounting estimates because they are highly susceptible to change from period to period based on the
performance of plan assets(cid:11) actuarial valuations(cid:11) mar(cid:64)et conditions(cid:11) and contracted benefit changes. (cid:47)he selection of
assumptions is based on historical trends and (cid:64)no(cid:76)n economic and mar(cid:64)et conditions at the time of valuation(cid:11) as (cid:76)ell as
independent studies of trends performed by the Company(cid:89)s actuaries. (cid:35)o(cid:76)ever(cid:11) actual results may differ substantially from the
estimates that (cid:76)ere based on the critical assumptions.
(cid:47)he Company recogni(cid:79)es the funded status of each defined benefit pension plan in the consolidated balance sheets.
Each overfunded plan is recogni(cid:79)ed as an asset in employee benefit assets and each underfunded plan is recogni(cid:79)ed as a liability
in employee benefit obligations. (cid:43)ension plan liabilities are revalued annually(cid:11) or (cid:76)hen an event occurs that requires
remeasurement(cid:11) based on updated assumptions and information about the individuals covered by the plan. Accumulated
actuarial gains and losses in e(cid:77)cess of a 10 percent corridor and the prior service cost are amorti(cid:79)ed on a straight(cid:12)line basis from
the date recogni(cid:79)ed over the average remaining service period of active participants or over the average life e(cid:77)pectancy for
plans (cid:76)ith significant inactive participants. (cid:47)he service costs related to defined benefits are included in operating income. (cid:47)he
other components of net benefit cost other than service cost are recorded (cid:76)ithin other non(cid:12)operating income(cid:11) net in the
consolidated statements of income.
E(cid:67)uity (cid:37)ethod and Other Investments: Investments in ordinary shares of companies(cid:11) in (cid:76)hich the Company believes it
e(cid:77)ercises significant influence over operating and financial policies(cid:11) are accounted for using the equity method of accounting.
(cid:48)nder this method(cid:11) the investment is carried at cost and is ad(cid:63)usted to recogni(cid:79)e the investor(cid:89)s share of earnings or losses of the
investee after the date of acquisition and is ad(cid:63)usted for impairment (cid:76)henever it is determined that a decline in the fair value
belo(cid:76) the cost basis is other than temporary. (cid:47)he fair value of the investment then becomes the ne(cid:76) cost basis of the investment
and it is not ad(cid:63)usted for subsequent recoveries in fair value. (cid:47)he Company sold its equity investment in A(cid:40)(cid:49)I(cid:34) (cid:35)oldings
Limited ("A(cid:40)(cid:49)I(cid:34)") in the first quarter of fiscal year 2021(cid:11) refer to (cid:41)ote 8(cid:11) "Equity (cid:40)ethod and Other Investments."
All equity investments that do not result in consolidation and are not accounted for under the equity method are
measured at fair value (cid:76)ith unreali(cid:79)ed gains and losses related to mar(cid:64)(cid:12)to(cid:12)mar(cid:64)et ad(cid:63)ustments included in net income. (cid:47)he
Company utili(cid:79)es the measurement alternative for equity investments that do not have readily determinable fair values and
measures these investments at cost ad(cid:63)usted for impairments and observable price changes in orderly transactions. (cid:47)o date(cid:11)
investments not accounted for under the equity method are not material.
5(cid:24)
60
Amcor Annual Report 2022
Form 10-K
61
Contingencies: (cid:47)he Company is sub(cid:63)ect to numerous contingencies arising in the ordinary course of business(cid:11) such as legal and
administrative proceedings(cid:11) environmental claims and proceedings(cid:11) (cid:76)or(cid:64)ers(cid:6) compensation(cid:11) and other claims. Accruals for
estimated losses are recorded by the Company at the time information becomes available indicating that losses are probable and
that the amounts can be reasonably estimated. (cid:50)hen management can reasonably estimate a range of losses it may incur(cid:11) it
records an accrual for the amount (cid:76)ithin the range that constitutes its best estimate. If no amount (cid:76)ithin a range appears to be a
better estimate than any other(cid:11) the lo(cid:76) end of the range is accrued. (cid:47)he Company records anticipated recoveries under e(cid:77)isting
insurance contracts (cid:76)hen recovery is probable.
Share-based Compensation: Amcor has a variety of equity incentive plans. For employee a(cid:76)ards (cid:76)ith a service or mar(cid:64)et
condition(cid:11) compensation e(cid:77)pense is recogni(cid:79)ed over the vesting period on a straight(cid:12)line basis using the grant date fair value of
the a(cid:76)ard and the estimated number of a(cid:76)ards that are e(cid:77)pected to vest. For a(cid:76)ards (cid:76)ith a performance condition(cid:11) the
Company reassesses the probability of vesting at each reporting period and ad(cid:63)usts compensation cost based on its probability
assessment. (cid:47)he Company also has immaterial cash(cid:12)settled share(cid:12)based compensation plans (cid:76)hich are accounted for as
liabilities. Such share(cid:12)based a(cid:76)ards are remeasured to fair value at each reporting date. (cid:47)he Company estimates forfeitures
based on employee level(cid:11) time remaining to vest(cid:11) and historical forfeiture e(cid:77)perience.
Income (cid:44)a(cid:74)es: (cid:47)he Company uses the asset and liability method to account for income ta(cid:77)es. (cid:31)eferred income ta(cid:77)es reflect the
future ta(cid:77) consequences of temporary differences bet(cid:76)een the ta(cid:77) bases of assets and liabilities and their financial reporting
amounts at each balance sheet date(cid:11) based upon enacted income ta(cid:77) la(cid:76)s and ta(cid:77) rates. Income ta(cid:77) e(cid:77)pense or benefit is
provided based on earnings reported in the consolidated financial statements. (cid:47)he provision for income ta(cid:77) e(cid:77)pense or benefit
differs from the amounts of income ta(cid:77)es currently payable because certain items of income and e(cid:77)pense included in the
consolidated financial statements are recogni(cid:79)ed in different time periods by ta(cid:77)ing authorities.
(cid:31)eferred ta(cid:77) assets(cid:11) including operating losses(cid:11) capital losses(cid:11) and ta(cid:77) credit carryfor(cid:76)ards(cid:11) are reduced by a valuation
allo(cid:76)ance (cid:76)hen it is more li(cid:64)ely than not that any portion of these ta(cid:77) attributes (cid:76)ill not be reali(cid:79)ed. In addition(cid:11) from time to
time(cid:11) management assesses the need to accrue or disclose uncertain ta(cid:77) positions. In ma(cid:64)ing these assessments(cid:11) management
must often analy(cid:79)e comple(cid:77) ta(cid:77) la(cid:76)s of multiple (cid:63)urisdictions. Accounting guidance prescribes a recognition threshold and
measurement attribute for the financial statement recognition and measurement of a ta(cid:77) position ta(cid:64)en or e(cid:77)pected to be ta(cid:64)en
in a ta(cid:77) return. (cid:47)he Company records the related interest e(cid:77)pense and penalties(cid:11) if any(cid:11) as ta(cid:77) e(cid:77)pense in the ta(cid:77) provision. See
(cid:41)ote 17(cid:11) "Income (cid:47)a(cid:77)es(cid:11)" for more information on the Company(cid:6)s income ta(cid:77)es.
(cid:38)ote 3 - (cid:38)ew Accounting (cid:31)uidance
Recently Adopted Accounting Standards
In (cid:31)ecember 201(cid:24)(cid:11) the FASB issued updated guidance to simplify the accounting for income ta(cid:77)es by removing
certain e(cid:77)ceptions and improving the consistent application of (cid:48).S. (cid:34)AA(cid:43) in other ta(cid:77) accounting areas. (cid:47)his guidance is
effective for annual reporting periods(cid:11) and any interim periods (cid:76)ithin those annual periods(cid:11) that begin after (cid:31)ecember 15(cid:11) 2020
(cid:76)ith early adoption permitted. (cid:47)he guidance became effective for the Company on (cid:37)uly 1(cid:11) 2021 and the adoption did not have a
material impact on the Company(cid:6)s consolidated financial statements.
Accounting Standards (cid:38)ot Yet Adopted
In (cid:41)ovember 2021(cid:11) the FASB issued an Accounting Standards (cid:48)pdate ("AS(cid:48)") 2021(cid:12)10 that adds certain disclosure
requirements for entities that receive government assistance. (cid:47)he standard is effective for annual periods beginning after
(cid:31)ecember 15(cid:11) 2021 (cid:76)ith early application permitted. (cid:47)he Company (cid:76)ill adopt this guidance on (cid:37)uly 1(cid:11) 2022 and does not
e(cid:77)pect the adoption to have a material impact on the Company(cid:6)s consolidated financial statements.
(cid:47)he Company considers the applicability and impact of all AS(cid:48)s issued by the FASB. (cid:47)he Company determined at
this time that all other AS(cid:48)s not yet adopted are either not applicable or are e(cid:77)pected to have minimal impact on the Company(cid:6)s
consolidated financial statements.
61
Amcor Annual Report 2022
62
Contingencies: (cid:47)he Company is sub(cid:63)ect to numerous contingencies arising in the ordinary course of business(cid:11) such as legal and
(cid:38)ote 3 - (cid:38)ew Accounting (cid:31)uidance
administrative proceedings(cid:11) environmental claims and proceedings(cid:11) (cid:76)or(cid:64)ers(cid:6) compensation(cid:11) and other claims. Accruals for
estimated losses are recorded by the Company at the time information becomes available indicating that losses are probable and
Recently Adopted Accounting Standards
61
Form 10-K
(cid:25)2
that the amounts can be reasonably estimated. (cid:50)hen management can reasonably estimate a range of losses it may incur(cid:11) it
records an accrual for the amount (cid:76)ithin the range that constitutes its best estimate. If no amount (cid:76)ithin a range appears to be a
better estimate than any other(cid:11) the lo(cid:76) end of the range is accrued. (cid:47)he Company records anticipated recoveries under e(cid:77)isting
insurance contracts (cid:76)hen recovery is probable.
Share-based Compensation: Amcor has a variety of equity incentive plans. For employee a(cid:76)ards (cid:76)ith a service or mar(cid:64)et
condition(cid:11) compensation e(cid:77)pense is recogni(cid:79)ed over the vesting period on a straight(cid:12)line basis using the grant date fair value of
the a(cid:76)ard and the estimated number of a(cid:76)ards that are e(cid:77)pected to vest. For a(cid:76)ards (cid:76)ith a performance condition(cid:11) the
Company reassesses the probability of vesting at each reporting period and ad(cid:63)usts compensation cost based on its probability
assessment. (cid:47)he Company also has immaterial cash(cid:12)settled share(cid:12)based compensation plans (cid:76)hich are accounted for as
liabilities. Such share(cid:12)based a(cid:76)ards are remeasured to fair value at each reporting date. (cid:47)he Company estimates forfeitures
based on employee level(cid:11) time remaining to vest(cid:11) and historical forfeiture e(cid:77)perience.
Income (cid:44)a(cid:74)es: (cid:47)he Company uses the asset and liability method to account for income ta(cid:77)es. (cid:31)eferred income ta(cid:77)es reflect the
future ta(cid:77) consequences of temporary differences bet(cid:76)een the ta(cid:77) bases of assets and liabilities and their financial reporting
amounts at each balance sheet date(cid:11) based upon enacted income ta(cid:77) la(cid:76)s and ta(cid:77) rates. Income ta(cid:77) e(cid:77)pense or benefit is
provided based on earnings reported in the consolidated financial statements. (cid:47)he provision for income ta(cid:77) e(cid:77)pense or benefit
differs from the amounts of income ta(cid:77)es currently payable because certain items of income and e(cid:77)pense included in the
consolidated financial statements are recogni(cid:79)ed in different time periods by ta(cid:77)ing authorities.
(cid:31)eferred ta(cid:77) assets(cid:11) including operating losses(cid:11) capital losses(cid:11) and ta(cid:77) credit carryfor(cid:76)ards(cid:11) are reduced by a valuation
allo(cid:76)ance (cid:76)hen it is more li(cid:64)ely than not that any portion of these ta(cid:77) attributes (cid:76)ill not be reali(cid:79)ed. In addition(cid:11) from time to
time(cid:11) management assesses the need to accrue or disclose uncertain ta(cid:77) positions. In ma(cid:64)ing these assessments(cid:11) management
must often analy(cid:79)e comple(cid:77) ta(cid:77) la(cid:76)s of multiple (cid:63)urisdictions. Accounting guidance prescribes a recognition threshold and
measurement attribute for the financial statement recognition and measurement of a ta(cid:77) position ta(cid:64)en or e(cid:77)pected to be ta(cid:64)en
in a ta(cid:77) return. (cid:47)he Company records the related interest e(cid:77)pense and penalties(cid:11) if any(cid:11) as ta(cid:77) e(cid:77)pense in the ta(cid:77) provision. See
(cid:41)ote 17(cid:11) "Income (cid:47)a(cid:77)es(cid:11)" for more information on the Company(cid:6)s income ta(cid:77)es.
In (cid:31)ecember 201(cid:24)(cid:11) the FASB issued updated guidance to simplify the accounting for income ta(cid:77)es by removing
certain e(cid:77)ceptions and improving the consistent application of (cid:48).S. (cid:34)AA(cid:43) in other ta(cid:77) accounting areas. (cid:47)his guidance is
effective for annual reporting periods(cid:11) and any interim periods (cid:76)ithin those annual periods(cid:11) that begin after (cid:31)ecember 15(cid:11) 2020
(cid:76)ith early adoption permitted. (cid:47)he guidance became effective for the Company on (cid:37)uly 1(cid:11) 2021 and the adoption did not have a
material impact on the Company(cid:6)s consolidated financial statements.
Accounting Standards (cid:38)ot Yet Adopted
In (cid:41)ovember 2021(cid:11) the FASB issued an Accounting Standards (cid:48)pdate ("AS(cid:48)") 2021(cid:12)10 that adds certain disclosure
requirements for entities that receive government assistance. (cid:47)he standard is effective for annual periods beginning after
(cid:31)ecember 15(cid:11) 2021 (cid:76)ith early application permitted. (cid:47)he Company (cid:76)ill adopt this guidance on (cid:37)uly 1(cid:11) 2022 and does not
e(cid:77)pect the adoption to have a material impact on the Company(cid:6)s consolidated financial statements.
(cid:47)he Company considers the applicability and impact of all AS(cid:48)s issued by the FASB. (cid:47)he Company determined at
this time that all other AS(cid:48)s not yet adopted are either not applicable or are e(cid:77)pected to have minimal impact on the Company(cid:6)s
consolidated financial statements.
61
62
Amcor Annual Report 2022
(cid:38)ote (cid:18) - Restructuring, Impairment, and Related E(cid:74)penses, (cid:38)et
(cid:38)ote (cid:19) - Divestitures
(cid:45)estructuring(cid:11) impairment(cid:11) and related e(cid:77)penses(cid:11) net(cid:11) as reported on the consolidated statements of income are
Year ended June 30, 2022
summari(cid:79)ed as follo(cid:76)s(cid:25)
Form 10-K
63
((cid:3) in millions)
(cid:45)estructuring and related e(cid:77)penses(cid:11) net
Impairment e(cid:77)penses
Restructuring, impairment, and related e(cid:74)penses, net
Years ended June 30,
2021
2020
2022
$
(cid:3)
((cid:24)6) $
(138)
(23(cid:18)) (cid:3)
((cid:24)4) $
(cid:85)
((cid:23)(cid:18)) (cid:3)
(115)
(cid:85)
(11(cid:19))
(cid:45)estructuring and related e(cid:77)penses(cid:11) net includes e(cid:77)penses related to the Company(cid:6)s 201(cid:24) plan focused on the
integration of acquired Bemis operations (cid:76)hich (cid:76)as complete at the end of fiscal year 2022(cid:11) e(cid:77)penses related to the 2018 plan
to restructure the Company(cid:6)s rigid pac(cid:64)aging operations(cid:11) and restructuring e(cid:77)penses associated (cid:76)ith the Company(cid:6)s decision to
sell its (cid:45)ussian business. For further information(cid:11) refer to (cid:41)ote 7(cid:11) "(cid:45)estructuring."
Impairment e(cid:77)penses of $138 million (cid:76)ere incurred in the fourth quarter of fiscal year 2022 as a result of the (cid:45)ussia(cid:12)
(cid:48)(cid:64)raine Conflict. In the fourth quarter(cid:11) the Company approved a plan to sell its (cid:45)ussian operations (cid:76)hich resulted in a non(cid:12)cash
impairment charge of $(cid:24)0 million. For further information(cid:11) refer to (cid:41)ote 6(cid:11) "(cid:35)eld for Sale and (cid:31)iscontinued Operations." In
addition(cid:11) the Company recogni(cid:79)ed other e(cid:77)penses of $48 million(cid:11) given the e(cid:77)pectation that certain assets not held for sale in
the conflict region (cid:76)ill not be recoverable. (cid:47)he Company(cid:6)s manufacturing plant in (cid:48)(cid:64)raine ceased operations in February 2022
and has not resumed operations given the ongoing conflict in the region has displaced the Company(cid:6)s employees(cid:11) destroyed
nearby manufacturing facilities(cid:11) and impaired the region(cid:6)s supporting infrastructure. Other asset impairment e(cid:77)penses in the last
three fiscal years (cid:76)ere not material and (cid:76)ere primarily reported in restructuring and related e(cid:77)penses(cid:11) net.
(cid:31)uring the third quarter of fiscal year 2022(cid:11) the Company completed the disposal of non(cid:12)core assets in the Fle(cid:77)ibles
reporting segment. (cid:47)he Company recorded an e(cid:77)pense of $10 million during the fiscal year ended (cid:37)une 30(cid:11) 2022 to ad(cid:63)ust the
long(cid:12)lived assets to their fair value less cost to sell.
Year ended June 30, 2021
As part of optimi(cid:79)ing its portfolio under the 201(cid:24) Bemis Integration (cid:43)lan(cid:11) the Company completed the disposal of a
non(cid:12)core European hospital supplies business(cid:11) (cid:76)hich (cid:76)as part of the Fle(cid:77)ibles reportable segment. (cid:47)he resulting gain from the
sale has been recorded in the line restructuring(cid:11) impairment(cid:11) and related e(cid:77)penses(cid:11) net(cid:11) in the consolidated statements of income.
(cid:45)efer to (cid:41)ote 4(cid:11) "(cid:45)estructuring(cid:11) Impairment(cid:11) and (cid:45)elated E(cid:77)penses(cid:11) (cid:41)et" and (cid:41)ote 7(cid:11) "(cid:45)estructuring."
(cid:47)he Company also completed the disposal of t(cid:76)o non(cid:12)core businesses in India and Argentina in the Fle(cid:77)ibles segment
during the first quarter of fiscal year 2021(cid:11) recording a loss on sale of $6 million(cid:11) (cid:76)hich (cid:76)as primarily driven by the
reclassification of cumulative translation ad(cid:63)ustments through the income statements that had previously been recorded in other
comprehensive income(cid:14)(loss).
(cid:47)he Company sold its equity investment in A(cid:40)(cid:49)I(cid:34) (cid:35)oldings Limited ("A(cid:40)(cid:49)I(cid:34)") in the first quarter of fiscal year
2021. (cid:45)efer to (cid:41)ote 8(cid:11) "Equity (cid:40)ethod and Other Investments."
Year ended June 30, 2020
Closing of the Bemis acquisition (cid:76)as conditional upon the receipt of regulatory approvals(cid:11) approval by both Amcor
and Bemis shareholders(cid:11) and satisfaction of other customary conditions. In order to satisfy certain regulatory approvals(cid:11) the
Company (cid:76)as required to divest three of Bemis(cid:6) medical pac(cid:64)aging facilities located in the (cid:48)nited (cid:38)ingdom and Ireland ("EC
(cid:45)emedy") and three Amcor medical pac(cid:64)aging facilities in the (cid:48)nited States ("(cid:48).S. (cid:45)emedy"). (cid:47)he (cid:48).S. (cid:45)emedy (cid:76)as
completed during the fourth quarter of fiscal year 201(cid:24) and the Company received $214 million resulting in a gain of $15(cid:24)
million. (cid:47)he EC (cid:45)emedy (cid:76)as completed during the first quarter of fiscal year 2020 and the Company received $3(cid:24)7 million and
recorded a loss on the sale of $(cid:24) million (cid:76)hich is the result of the reclassification of accumulated foreign currency translation
amounts from accumulated other comprehensive loss to earnings from discontinued operations upon sale of the EC (cid:45)emedy.
In addition(cid:11) the Company sold an equity method investment acquired through the Bemis acquisition in the third quarter
of fiscal year 2020 for proceeds of $28 million. (cid:47)here (cid:76)as no gain or loss on sale as the investment (cid:76)as recorded at fair value
upon acquisition.
63
Amcor Annual Report 2022
64
(cid:38)ote (cid:18) - Restructuring, Impairment, and Related E(cid:74)penses, (cid:38)et
(cid:38)ote (cid:19) - Divestitures
(cid:45)estructuring(cid:11) impairment(cid:11) and related e(cid:77)penses(cid:11) net(cid:11) as reported on the consolidated statements of income are
Year ended June 30, 2022
summari(cid:79)ed as follo(cid:76)s(cid:25)
63
Form 10-K
64
((cid:3) in millions)
(cid:45)estructuring and related e(cid:77)penses(cid:11) net
Impairment e(cid:77)penses
Restructuring, impairment, and related e(cid:74)penses, net
Years ended June 30,
2022
2021
2020
$
(cid:3)
((cid:24)6) $
(138)
(23(cid:18)) (cid:3)
((cid:24)4) $
(cid:85)
((cid:23)(cid:18)) (cid:3)
(115)
(cid:85)
(11(cid:19))
(cid:45)estructuring and related e(cid:77)penses(cid:11) net includes e(cid:77)penses related to the Company(cid:6)s 201(cid:24) plan focused on the
integration of acquired Bemis operations (cid:76)hich (cid:76)as complete at the end of fiscal year 2022(cid:11) e(cid:77)penses related to the 2018 plan
to restructure the Company(cid:6)s rigid pac(cid:64)aging operations(cid:11) and restructuring e(cid:77)penses associated (cid:76)ith the Company(cid:6)s decision to
sell its (cid:45)ussian business. For further information(cid:11) refer to (cid:41)ote 7(cid:11) "(cid:45)estructuring."
Impairment e(cid:77)penses of $138 million (cid:76)ere incurred in the fourth quarter of fiscal year 2022 as a result of the (cid:45)ussia(cid:12)
(cid:48)(cid:64)raine Conflict. In the fourth quarter(cid:11) the Company approved a plan to sell its (cid:45)ussian operations (cid:76)hich resulted in a non(cid:12)cash
impairment charge of $(cid:24)0 million. For further information(cid:11) refer to (cid:41)ote 6(cid:11) "(cid:35)eld for Sale and (cid:31)iscontinued Operations." In
addition(cid:11) the Company recogni(cid:79)ed other e(cid:77)penses of $48 million(cid:11) given the e(cid:77)pectation that certain assets not held for sale in
the conflict region (cid:76)ill not be recoverable. (cid:47)he Company(cid:6)s manufacturing plant in (cid:48)(cid:64)raine ceased operations in February 2022
and has not resumed operations given the ongoing conflict in the region has displaced the Company(cid:6)s employees(cid:11) destroyed
nearby manufacturing facilities(cid:11) and impaired the region(cid:6)s supporting infrastructure. Other asset impairment e(cid:77)penses in the last
three fiscal years (cid:76)ere not material and (cid:76)ere primarily reported in restructuring and related e(cid:77)penses(cid:11) net.
(cid:31)uring the third quarter of fiscal year 2022(cid:11) the Company completed the disposal of non(cid:12)core assets in the Fle(cid:77)ibles
reporting segment. (cid:47)he Company recorded an e(cid:77)pense of $10 million during the fiscal year ended (cid:37)une 30(cid:11) 2022 to ad(cid:63)ust the
long(cid:12)lived assets to their fair value less cost to sell.
Year ended June 30, 2021
As part of optimi(cid:79)ing its portfolio under the 201(cid:24) Bemis Integration (cid:43)lan(cid:11) the Company completed the disposal of a
non(cid:12)core European hospital supplies business(cid:11) (cid:76)hich (cid:76)as part of the Fle(cid:77)ibles reportable segment. (cid:47)he resulting gain from the
sale has been recorded in the line restructuring(cid:11) impairment(cid:11) and related e(cid:77)penses(cid:11) net(cid:11) in the consolidated statements of income.
(cid:45)efer to (cid:41)ote 4(cid:11) "(cid:45)estructuring(cid:11) Impairment(cid:11) and (cid:45)elated E(cid:77)penses(cid:11) (cid:41)et" and (cid:41)ote 7(cid:11) "(cid:45)estructuring."
(cid:47)he Company also completed the disposal of t(cid:76)o non(cid:12)core businesses in India and Argentina in the Fle(cid:77)ibles segment
during the first quarter of fiscal year 2021(cid:11) recording a loss on sale of $6 million(cid:11) (cid:76)hich (cid:76)as primarily driven by the
reclassification of cumulative translation ad(cid:63)ustments through the income statements that had previously been recorded in other
comprehensive income(cid:14)(loss).
(cid:47)he Company sold its equity investment in A(cid:40)(cid:49)I(cid:34) (cid:35)oldings Limited ("A(cid:40)(cid:49)I(cid:34)") in the first quarter of fiscal year
2021. (cid:45)efer to (cid:41)ote 8(cid:11) "Equity (cid:40)ethod and Other Investments."
Year ended June 30, 2020
Closing of the Bemis acquisition (cid:76)as conditional upon the receipt of regulatory approvals(cid:11) approval by both Amcor
and Bemis shareholders(cid:11) and satisfaction of other customary conditions. In order to satisfy certain regulatory approvals(cid:11) the
Company (cid:76)as required to divest three of Bemis(cid:6) medical pac(cid:64)aging facilities located in the (cid:48)nited (cid:38)ingdom and Ireland ("EC
(cid:45)emedy") and three Amcor medical pac(cid:64)aging facilities in the (cid:48)nited States ("(cid:48).S. (cid:45)emedy"). (cid:47)he (cid:48).S. (cid:45)emedy (cid:76)as
completed during the fourth quarter of fiscal year 201(cid:24) and the Company received $214 million resulting in a gain of $15(cid:24)
million. (cid:47)he EC (cid:45)emedy (cid:76)as completed during the first quarter of fiscal year 2020 and the Company received $3(cid:24)7 million and
recorded a loss on the sale of $(cid:24) million (cid:76)hich is the result of the reclassification of accumulated foreign currency translation
amounts from accumulated other comprehensive loss to earnings from discontinued operations upon sale of the EC (cid:45)emedy.
In addition(cid:11) the Company sold an equity method investment acquired through the Bemis acquisition in the third quarter
of fiscal year 2020 for proceeds of $28 million. (cid:47)here (cid:76)as no gain or loss on sale as the investment (cid:76)as recorded at fair value
upon acquisition.
63
64
Amcor Annual Report 2022
Form 10-K
65
(cid:38)ote (cid:20) - (cid:32)eld for Sale and Discontinued Operations
(cid:38)ote (cid:21) - Restructuring
(cid:31)uring the fourth quarter of fiscal year 2022(cid:11) the Company classified the assets and liabilities of its (cid:45)ussian business
201(cid:23) Bemis Integration Plan
as held for sale as a result of the Company(cid:6)s decision to sell its (cid:45)ussian business. (cid:47)he (cid:45)ussian business is part of the Company(cid:89)s
Fle(cid:77)ibles segment and is e(cid:77)pected to be sold (cid:76)ithin one year. (cid:47)he Company has recorded an impairment of $(cid:24)0 million as of
(cid:37)une 30(cid:11) 2022(cid:11) (cid:76)ithin the line item restructuring(cid:11) impairment(cid:11) and related e(cid:77)penses(cid:11) net on the consolidated statements of
income. (cid:47)he disposal of the (cid:45)ussian business (cid:76)ill not represent a strategic shift that (cid:76)ill have a ma(cid:63)or effect on the Company(cid:6)s
operations and financial results(cid:11) and therefore does not qualify for reporting as a discontinued operation.
(cid:40)a(cid:63)or classes of assets and liabilities of the (cid:45)ussian business classified as held for sale as of (cid:37)une 30(cid:11) 2022 (cid:76)ere as
follo(cid:76)s(cid:25)
((cid:3) in millions)
Cash and cash equivalents
(cid:47)rade receivables(cid:11) net
Inventories(cid:11) net
(cid:43)repaid e(cid:77)penses and other current assets
(cid:43)roperty(cid:11) plant(cid:11) and equipment(cid:11) net
(cid:34)ood(cid:76)ill
(cid:44)otal assets held for sale
Less impairment (1)
(cid:44)otal assets held for sale, net
(cid:47)rade payables
(cid:44)otal current liabilities held for sale
June 30, 2022
$
(cid:3)
(cid:3)
75
66
40
36
4(cid:24)
16
2(cid:22)2
((cid:24)0)
1(cid:23)2
65
(cid:20)(cid:19)
(1) Impairment inclusive of accumulated other comprehensive loss related to the (cid:45)ussian business.
(cid:47)his table e(cid:77)cludes other assets and liabilities held for sale but not part of the (cid:45)ussian business and that are not
material for disclosure.
On February 11(cid:11) 201(cid:24)(cid:11) the Company received approval from the European Commission ("EC") for the acquisition of
Bemis Company(cid:11) Inc. ("Bemis"). A condition of the approval (cid:76)as an agreement to divest three Bemis medical pac(cid:64)aging
facilities located in the (cid:48)nited (cid:38)ingdom and Ireland ("EC (cid:45)emedy"). (cid:48)pon completion of the Bemis acquisition on (cid:37)une 11(cid:11)
201(cid:24)(cid:11) the Company determined that the EC (cid:45)emedy met the criteria to be classified as a discontinued operation(cid:11) in accordance
(cid:76)ith ASC 205(cid:12)20(cid:11) "(cid:31)iscontinued Operations." (cid:47)he sale of the EC (cid:45)emedy closed on August 8(cid:11) 201(cid:24). (cid:47)he Company recorded a
loss on the sale of $(cid:24) million(cid:11) (cid:76)hich is the result of the reclassification of accumulated foreign currency translation amounts
from accumulated other comprehensive loss to earnings from discontinued operations upon sale of the EC (cid:45)emedy.
(cid:47)he follo(cid:76)ing table summari(cid:79)es the results of the Company(cid:6)s discontinued operations(cid:25)
((cid:3) in millions)
(cid:41)et sales
Loss from discontinued operations
(cid:47)a(cid:77) e(cid:77)pense from discontinued operations
Loss from discontinued operations(cid:11) net of ta(cid:77)
Years ended June 30,
2021
2020
2022
(cid:85) $
(cid:85) $
16
(cid:85)
(cid:85)
(cid:77) (cid:3)
(cid:85)
(cid:85)
(cid:77) (cid:3)
(7)
(1)
((cid:22))
$
(cid:3)
In connection (cid:76)ith the acquisition of Bemis Company(cid:11) Inc. ("Bemis")(cid:11) the Company initiated restructuring activities in
the fourth quarter of 201(cid:24) aimed at integrating and optimi(cid:79)ing the combined organi(cid:79)ation.
(cid:47)he 201(cid:24) Bemis Integration (cid:43)lan (cid:76)as completed by (cid:37)une 30(cid:11) 2022 (cid:76)ith final pre(cid:12)ta(cid:77) integration cost amounting to
$253 million. (cid:47)he total 201(cid:24) Bemis Integration (cid:43)lan cost includes $213 million of restructuring and related e(cid:77)penses(cid:11) net(cid:11) and
$40 million of general integration e(cid:77)penses. (cid:47)he net cash e(cid:77)penditures for the plan(cid:11) including disposal proceeds(cid:11) are $170
million(cid:11) of (cid:76)hich $40 million relates to general integration e(cid:77)penses. As part of this (cid:43)lan the Company has incurred $144
million in employee related e(cid:77)penses(cid:11) $36 million in fi(cid:77)ed asset related e(cid:77)penses(cid:11) $3(cid:24) million in other restructuring and $45
million in restructuring related e(cid:77)penses(cid:11) partially offset by a gain on disposal of a business of $51 million. In fiscal year 2022(cid:11)
the (cid:43)lan resulted in net cash outflo(cid:76)s of $4(cid:24) million of (cid:76)hich $47 million (cid:76)ere payments related to restructuring and related
e(cid:77)penditures. (cid:47)he remaining cash outflo(cid:76) (cid:76)ill be primarily incurred in fiscal year 2023.
(cid:45)estructuring related costs are directly attributable to restructuring activities(cid:26) ho(cid:76)ever(cid:11) they do not qualify for special
accounting treatment as e(cid:77)it or disposal activities. (cid:34)eneral integration costs are not lin(cid:64)ed to restructuring. (cid:47)he Company
believes the disclosure of restructuring related costs provides more information on the total cost of the 201(cid:24) Bemis Integration
(cid:43)lan. (cid:47)he restructuring related costs relate primarily to the closure of facilities and include costs to replace graphics(cid:11) train ne(cid:76)
employees on relocated equipment(cid:11) and losses on sale of closed facilities.
201(cid:22) Rigid Pac(cid:61)aging Restructuring Plan
On August 21(cid:11) 2018(cid:11) the Company announced a restructuring plan in Amcor (cid:45)igid (cid:43)ac(cid:64)aging ("2018 (cid:45)igid (cid:43)ac(cid:64)aging
(cid:45)estructuring (cid:43)lan") aimed at reducing structural costs and optimi(cid:79)ing the footprint. (cid:47)he (cid:43)lan included the closures of
manufacturing facilities and headcount reductions to achieve manufacturing footprint optimi(cid:79)ation and productivity
improvements as (cid:76)ell as overhead cost reductions.
(cid:47)he 2018 (cid:45)igid (cid:43)ac(cid:64)aging (cid:45)estructuring (cid:43)lan (cid:76)as completed by (cid:37)une 30(cid:11) 2021 (cid:76)ith total pre(cid:12)ta(cid:77) restructuring costs of
$121 million(cid:11) of (cid:76)hich $78 million resulted in cash e(cid:77)penditures(cid:11) (cid:76)ith the main component being the cost to e(cid:77)it manufacturing
facilities and employee related costs.
Other Restructuring Plans
(cid:45)ussian sale.
Consolidated Amcor Restructuring Plans
(cid:47)he Company has entered into other restructuring plans ("Other (cid:45)estructuring (cid:43)lans"). (cid:47)he Company(cid:6)s restructuring
charges related to these plans (cid:76)ere $5(cid:24) million(cid:11) $6 million(cid:11) and $18 million for the fiscal years ended (cid:37)une 30(cid:11) 2022(cid:11) 2021(cid:11) and
2020(cid:11) respectively. (cid:31)uring the fourth quarter of fiscal year 2022(cid:11) the Company recorded $57 million in restructuring and related
e(cid:77)penses classified (cid:76)ithin Other (cid:45)estructuring (cid:43)lans triggered by the (cid:45)ussia(cid:12)(cid:48)(cid:64)raine conflict to help mitigate the impact of the
(cid:47)he total e(cid:77)penses incurred from the beginning of the Company(cid:6)s material restructuring plans are as follo(cid:76)s(cid:25)
((cid:3) in millions)
201(cid:22) Rigid
Pac(cid:61)aging
201(cid:23) Bemis
Other
Restructuring
Integration Plan
Restructuring
Plan
(1)
Plans (2)
(cid:44)otal
Restructuring
and Related
E(cid:74)penses, (cid:38)et (1)
Fiscal year 201(cid:24) net charges to earnings
$
64 $
48 $
1(cid:24) $
Fiscal year 2020 net charges to earnings
Fiscal year 2021 net charges to earnings
Fiscal year 2022 net charges to earnings
37
20
(cid:85)
60
68
37
18
6
5(cid:24)
E(cid:74)pense incurred to date
(cid:3)
121 (cid:3)
213 (cid:3)
102 (cid:3)
131
115
(cid:24)4
(cid:24)6
(cid:18)3(cid:20)
(1) (cid:47)otal restructuring and related e(cid:77)penses(cid:11) net(cid:11) include restructuring related costs from the 201(cid:24) Bemis Integration (cid:43)lan of $17
million(cid:11) $13 million(cid:11) and $15 million for the fiscal years 2022(cid:11) 2021(cid:11) and 2020(cid:11) respectively.
(2) Fiscal year 2022 includes $55 million in restructuring e(cid:77)penses and $2 million of restructuring related e(cid:77)penses that pertain to the
(cid:45)ussia(cid:12)(cid:48)(cid:64)raine conflict as discussed above in section "Other (cid:45)estructuring (cid:43)lans".
65
Amcor Annual Report 2022
66
as held for sale as a result of the Company(cid:6)s decision to sell its (cid:45)ussian business. (cid:47)he (cid:45)ussian business is part of the Company(cid:89)s
Fle(cid:77)ibles segment and is e(cid:77)pected to be sold (cid:76)ithin one year. (cid:47)he Company has recorded an impairment of $(cid:24)0 million as of
income. (cid:47)he disposal of the (cid:45)ussian business (cid:76)ill not represent a strategic shift that (cid:76)ill have a ma(cid:63)or effect on the Company(cid:6)s
operations and financial results(cid:11) and therefore does not qualify for reporting as a discontinued operation.
(cid:40)a(cid:63)or classes of assets and liabilities of the (cid:45)ussian business classified as held for sale as of (cid:37)une 30(cid:11) 2022 (cid:76)ere as
follo(cid:76)s(cid:25)
((cid:3) in millions)
Cash and cash equivalents
(cid:47)rade receivables(cid:11) net
Inventories(cid:11) net
(cid:43)repaid e(cid:77)penses and other current assets
(cid:43)roperty(cid:11) plant(cid:11) and equipment(cid:11) net
(cid:34)ood(cid:76)ill
(cid:44)otal assets held for sale
Less impairment (1)
(cid:44)otal assets held for sale, net
(cid:47)rade payables
(cid:44)otal current liabilities held for sale
June 30, 2022
75
66
40
36
4(cid:24)
16
2(cid:22)2
((cid:24)0)
1(cid:23)2
65
(cid:20)(cid:19)
$
(cid:3)
(cid:3)
$
(cid:3)
(1) Impairment inclusive of accumulated other comprehensive loss related to the (cid:45)ussian business.
(cid:47)his table e(cid:77)cludes other assets and liabilities held for sale but not part of the (cid:45)ussian business and that are not
material for disclosure.
On February 11(cid:11) 201(cid:24)(cid:11) the Company received approval from the European Commission ("EC") for the acquisition of
Bemis Company(cid:11) Inc. ("Bemis"). A condition of the approval (cid:76)as an agreement to divest three Bemis medical pac(cid:64)aging
facilities located in the (cid:48)nited (cid:38)ingdom and Ireland ("EC (cid:45)emedy"). (cid:48)pon completion of the Bemis acquisition on (cid:37)une 11(cid:11)
201(cid:24)(cid:11) the Company determined that the EC (cid:45)emedy met the criteria to be classified as a discontinued operation(cid:11) in accordance
(cid:76)ith ASC 205(cid:12)20(cid:11) "(cid:31)iscontinued Operations." (cid:47)he sale of the EC (cid:45)emedy closed on August 8(cid:11) 201(cid:24). (cid:47)he Company recorded a
loss on the sale of $(cid:24) million(cid:11) (cid:76)hich is the result of the reclassification of accumulated foreign currency translation amounts
from accumulated other comprehensive loss to earnings from discontinued operations upon sale of the EC (cid:45)emedy.
(cid:47)he follo(cid:76)ing table summari(cid:79)es the results of the Company(cid:6)s discontinued operations(cid:25)
((cid:3) in millions)
(cid:41)et sales
Loss from discontinued operations
(cid:47)a(cid:77) e(cid:77)pense from discontinued operations
Loss from discontinued operations(cid:11) net of ta(cid:77)
Years ended June 30,
2022
2021
2020
(cid:85) $
(cid:85) $
16
(cid:85)
(cid:85)
(cid:85)
(cid:85)
(cid:77) (cid:3)
(cid:77) (cid:3)
(7)
(1)
((cid:22))
65
Form 10-K
66
(cid:38)ote (cid:20) - (cid:32)eld for Sale and Discontinued Operations
(cid:38)ote (cid:21) - Restructuring
(cid:31)uring the fourth quarter of fiscal year 2022(cid:11) the Company classified the assets and liabilities of its (cid:45)ussian business
201(cid:23) Bemis Integration Plan
(cid:37)une 30(cid:11) 2022(cid:11) (cid:76)ithin the line item restructuring(cid:11) impairment(cid:11) and related e(cid:77)penses(cid:11) net on the consolidated statements of
the fourth quarter of 201(cid:24) aimed at integrating and optimi(cid:79)ing the combined organi(cid:79)ation.
In connection (cid:76)ith the acquisition of Bemis Company(cid:11) Inc. ("Bemis")(cid:11) the Company initiated restructuring activities in
(cid:47)he 201(cid:24) Bemis Integration (cid:43)lan (cid:76)as completed by (cid:37)une 30(cid:11) 2022 (cid:76)ith final pre(cid:12)ta(cid:77) integration cost amounting to
$253 million. (cid:47)he total 201(cid:24) Bemis Integration (cid:43)lan cost includes $213 million of restructuring and related e(cid:77)penses(cid:11) net(cid:11) and
$40 million of general integration e(cid:77)penses. (cid:47)he net cash e(cid:77)penditures for the plan(cid:11) including disposal proceeds(cid:11) are $170
million(cid:11) of (cid:76)hich $40 million relates to general integration e(cid:77)penses. As part of this (cid:43)lan the Company has incurred $144
million in employee related e(cid:77)penses(cid:11) $36 million in fi(cid:77)ed asset related e(cid:77)penses(cid:11) $3(cid:24) million in other restructuring and $45
million in restructuring related e(cid:77)penses(cid:11) partially offset by a gain on disposal of a business of $51 million. In fiscal year 2022(cid:11)
the (cid:43)lan resulted in net cash outflo(cid:76)s of $4(cid:24) million of (cid:76)hich $47 million (cid:76)ere payments related to restructuring and related
e(cid:77)penditures. (cid:47)he remaining cash outflo(cid:76) (cid:76)ill be primarily incurred in fiscal year 2023.
(cid:45)estructuring related costs are directly attributable to restructuring activities(cid:26) ho(cid:76)ever(cid:11) they do not qualify for special
accounting treatment as e(cid:77)it or disposal activities. (cid:34)eneral integration costs are not lin(cid:64)ed to restructuring. (cid:47)he Company
believes the disclosure of restructuring related costs provides more information on the total cost of the 201(cid:24) Bemis Integration
(cid:43)lan. (cid:47)he restructuring related costs relate primarily to the closure of facilities and include costs to replace graphics(cid:11) train ne(cid:76)
employees on relocated equipment(cid:11) and losses on sale of closed facilities.
201(cid:22) Rigid Pac(cid:61)aging Restructuring Plan
On August 21(cid:11) 2018(cid:11) the Company announced a restructuring plan in Amcor (cid:45)igid (cid:43)ac(cid:64)aging ("2018 (cid:45)igid (cid:43)ac(cid:64)aging
(cid:45)estructuring (cid:43)lan") aimed at reducing structural costs and optimi(cid:79)ing the footprint. (cid:47)he (cid:43)lan included the closures of
manufacturing facilities and headcount reductions to achieve manufacturing footprint optimi(cid:79)ation and productivity
improvements as (cid:76)ell as overhead cost reductions.
(cid:47)he 2018 (cid:45)igid (cid:43)ac(cid:64)aging (cid:45)estructuring (cid:43)lan (cid:76)as completed by (cid:37)une 30(cid:11) 2021 (cid:76)ith total pre(cid:12)ta(cid:77) restructuring costs of
$121 million(cid:11) of (cid:76)hich $78 million resulted in cash e(cid:77)penditures(cid:11) (cid:76)ith the main component being the cost to e(cid:77)it manufacturing
facilities and employee related costs.
Other Restructuring Plans
(cid:47)he Company has entered into other restructuring plans ("Other (cid:45)estructuring (cid:43)lans"). (cid:47)he Company(cid:6)s restructuring
charges related to these plans (cid:76)ere $5(cid:24) million(cid:11) $6 million(cid:11) and $18 million for the fiscal years ended (cid:37)une 30(cid:11) 2022(cid:11) 2021(cid:11) and
2020(cid:11) respectively. (cid:31)uring the fourth quarter of fiscal year 2022(cid:11) the Company recorded $57 million in restructuring and related
e(cid:77)penses classified (cid:76)ithin Other (cid:45)estructuring (cid:43)lans triggered by the (cid:45)ussia(cid:12)(cid:48)(cid:64)raine conflict to help mitigate the impact of the
(cid:45)ussian sale.
Consolidated Amcor Restructuring Plans
(cid:47)he total e(cid:77)penses incurred from the beginning of the Company(cid:6)s material restructuring plans are as follo(cid:76)s(cid:25)
((cid:3) in millions)
201(cid:22) Rigid
Pac(cid:61)aging
Restructuring
Plan
201(cid:23) Bemis
Integration Plan
(1)
Other
Restructuring
Plans (2)
(cid:44)otal
Restructuring
and Related
E(cid:74)penses, (cid:38)et (1)
Fiscal year 201(cid:24) net charges to earnings
$
64 $
48 $
1(cid:24) $
Fiscal year 2020 net charges to earnings
Fiscal year 2021 net charges to earnings
Fiscal year 2022 net charges to earnings
E(cid:74)pense incurred to date
(cid:3)
37
20
(cid:85)
121 (cid:3)
60
68
37
213 (cid:3)
18
6
5(cid:24)
102 (cid:3)
131
115
(cid:24)4
(cid:24)6
(cid:18)3(cid:20)
(1) (cid:47)otal restructuring and related e(cid:77)penses(cid:11) net(cid:11) include restructuring related costs from the 201(cid:24) Bemis Integration (cid:43)lan of $17
million(cid:11) $13 million(cid:11) and $15 million for the fiscal years 2022(cid:11) 2021(cid:11) and 2020(cid:11) respectively.
(2) Fiscal year 2022 includes $55 million in restructuring e(cid:77)penses and $2 million of restructuring related e(cid:77)penses that pertain to the
(cid:45)ussia(cid:12)(cid:48)(cid:64)raine conflict as discussed above in section "Other (cid:45)estructuring (cid:43)lans".
65
66
Amcor Annual Report 2022
An analysis of the restructuring e(cid:77)penses by type incurred follo(cid:76)s(cid:25)
(cid:38)ote (cid:22) - E(cid:67)uity (cid:37)ethod and Other Investments
Form 10-K
67
((cid:3) in millions)
Employee related e(cid:77)penses
Fi(cid:77)ed asset related e(cid:77)penses
Other e(cid:77)penses
(cid:34)ain on sale of business
(cid:44)otal restructuring e(cid:74)penses, net
Years ended June 30,
2021
2020
2022
58 $
76 $
4
15
(cid:85)
(cid:21)(cid:21) (cid:3)
23
34
(51)
(cid:22)2 (cid:3)
45
24
2(cid:24)
(cid:85)
(cid:23)(cid:22)
$
(cid:3)
An analysis of the Company(cid:6)s restructuring plan liability(cid:11) not including restructuring related liabilities(cid:11) is as follo(cid:76)s(cid:25)
changes in circumstances indicate the carrying amount may not be recoverable. (cid:31)ue to impairment indicators present in fiscal
((cid:3) in millions)
Liability balance at June 30, 201(cid:23)
(cid:3)
(cid:41)et charges to earnings
Cash paid
(cid:41)on(cid:12)cash and other
Liability balance at June 30, 2020
(cid:41)et charges to earnings
Cash paid
(cid:41)on(cid:12)cash and other
Foreign currency translation
Liability balance at June 30, 2021
(cid:41)et charges to earnings
Cash received(cid:14)(paid)(cid:11) net
(cid:41)on(cid:12)cash and other
Foreign currency translation
Liability balance at June 30, 2022
(cid:3)
Employee
Costs
Fi(cid:74)ed Asset
Related Costs Other Costs
(cid:44)otal
Restructuring
Costs
(cid:21)3 (cid:3)
45
(48)
(cid:85)
(cid:21)0
76
(61)
((cid:24))
2
(cid:21)(cid:22)
58
(27)
(3)
((cid:24))
(cid:23)(cid:21) (cid:3)
(cid:21) (cid:3)
24
(5)
(23)
3
23
(5)
(23)
2
(cid:77)
4
4
(5)
(cid:85)
3 (cid:3)
(cid:22) (cid:3)
2(cid:24)
(25)
(cid:85)
12
34
(30)
(cid:85)
1
1(cid:21)
15
(14)
(cid:85)
(cid:85)
1(cid:22) (cid:3)
(cid:22)(cid:22)
(cid:24)8
(78)
(23)
(cid:22)(cid:19)
133
((cid:24)6)
(32)
5
(cid:23)(cid:19)
77
(37)
(8)
((cid:24))
11(cid:22)
(cid:47)he e(cid:77)penses related to restructuring activities(cid:11) including restructuring related activities(cid:11) have been presented on the
consolidated statements of income as restructuring(cid:11) impairment(cid:11) and related e(cid:77)penses(cid:11) net. (cid:47)he accruals related to restructuring
activities have been recorded on the consolidated balance sheets under other current liabilities.
Investments accounted for under the equity method generally include all entities in (cid:76)hich the Company or its
subsidiaries have significant influence(cid:11) (cid:76)ith usually not more than 50(cid:4) voting interest. (cid:47)he Company sold its only significant
equity method investment(cid:11) a 47.6(cid:4) interest in A(cid:40)(cid:49)I(cid:34) (cid:35)oldings Limited ("A(cid:40)(cid:49)I(cid:34)") on September 30(cid:11) 2020(cid:11) reali(cid:79)ing a net
gain of $15 million(cid:11) (cid:76)hich (cid:76)as recorded in equity in income(cid:14)(loss) of affiliated companies(cid:11) net of ta(cid:77) in the consolidated
statements of income.
As of (cid:37)une 30(cid:11) 2022 and 2021(cid:11) investments accounted for under the equity method and other investments carried at
cost are immaterial. (cid:47)he Company received no dividends from equity method investments in the fiscal years ended (cid:37)une 30(cid:11)
2022 and 2021. (cid:31)uring the fiscal year ended (cid:37)une 30(cid:11) 2020(cid:11) the Company received dividends of $10 million from A(cid:40)(cid:49)I(cid:34).
(cid:47)he Company revie(cid:76)s its investments accounted for under the equity method for impairment (cid:76)henever events or
year ended (cid:37)une 30(cid:11) 2020(cid:11) the Company performed impairment tests by comparing the carrying value of its investment in
A(cid:40)(cid:49)I(cid:34) to its fair value(cid:11) (cid:76)hich (cid:76)as determined based on A(cid:40)(cid:49)I(cid:34)(cid:6)s quoted share price. (cid:47)he fair value of the investment
dropped belo(cid:76) its carrying value during fiscal year ended (cid:37)une 30(cid:11) 2020(cid:11) and therefore the Company recorded an other(cid:12)than(cid:12)
temporary impairment of $26 million to bring the value of its investment to fair value. (cid:47)he impairment charge (cid:76)as included in
equity in income(cid:14)(loss) of affiliated companies(cid:11) net of ta(cid:77)(cid:11) in the consolidated statements of income.
67
Amcor Annual Report 2022
68
An analysis of the restructuring e(cid:77)penses by type incurred follo(cid:76)s(cid:25)
(cid:38)ote (cid:22) - E(cid:67)uity (cid:37)ethod and Other Investments
67
Form 10-K
68
Investments accounted for under the equity method generally include all entities in (cid:76)hich the Company or its
subsidiaries have significant influence(cid:11) (cid:76)ith usually not more than 50(cid:4) voting interest. (cid:47)he Company sold its only significant
equity method investment(cid:11) a 47.6(cid:4) interest in A(cid:40)(cid:49)I(cid:34) (cid:35)oldings Limited ("A(cid:40)(cid:49)I(cid:34)") on September 30(cid:11) 2020(cid:11) reali(cid:79)ing a net
gain of $15 million(cid:11) (cid:76)hich (cid:76)as recorded in equity in income(cid:14)(loss) of affiliated companies(cid:11) net of ta(cid:77) in the consolidated
statements of income.
As of (cid:37)une 30(cid:11) 2022 and 2021(cid:11) investments accounted for under the equity method and other investments carried at
cost are immaterial. (cid:47)he Company received no dividends from equity method investments in the fiscal years ended (cid:37)une 30(cid:11)
2022 and 2021. (cid:31)uring the fiscal year ended (cid:37)une 30(cid:11) 2020(cid:11) the Company received dividends of $10 million from A(cid:40)(cid:49)I(cid:34).
(cid:47)he Company revie(cid:76)s its investments accounted for under the equity method for impairment (cid:76)henever events or
changes in circumstances indicate the carrying amount may not be recoverable. (cid:31)ue to impairment indicators present in fiscal
year ended (cid:37)une 30(cid:11) 2020(cid:11) the Company performed impairment tests by comparing the carrying value of its investment in
A(cid:40)(cid:49)I(cid:34) to its fair value(cid:11) (cid:76)hich (cid:76)as determined based on A(cid:40)(cid:49)I(cid:34)(cid:6)s quoted share price. (cid:47)he fair value of the investment
dropped belo(cid:76) its carrying value during fiscal year ended (cid:37)une 30(cid:11) 2020(cid:11) and therefore the Company recorded an other(cid:12)than(cid:12)
temporary impairment of $26 million to bring the value of its investment to fair value. (cid:47)he impairment charge (cid:76)as included in
equity in income(cid:14)(loss) of affiliated companies(cid:11) net of ta(cid:77)(cid:11) in the consolidated statements of income.
An analysis of the Company(cid:6)s restructuring plan liability(cid:11) not including restructuring related liabilities(cid:11) is as follo(cid:76)s(cid:25)
Liability balance at June 30, 201(cid:23)
(cid:3)
(cid:21)3 (cid:3)
((cid:3) in millions)
Employee related e(cid:77)penses
Fi(cid:77)ed asset related e(cid:77)penses
Other e(cid:77)penses
(cid:34)ain on sale of business
(cid:44)otal restructuring e(cid:74)penses, net
((cid:3) in millions)
(cid:41)et charges to earnings
Cash paid
(cid:41)on(cid:12)cash and other
(cid:41)et charges to earnings
Cash paid
(cid:41)on(cid:12)cash and other
Liability balance at June 30, 2020
Foreign currency translation
Liability balance at June 30, 2021
(cid:41)et charges to earnings
Cash received(cid:14)(paid)(cid:11) net
(cid:41)on(cid:12)cash and other
Foreign currency translation
Years ended June 30,
2022
2021
2020
58 $
76 $
4
15
(cid:85)
(cid:21)(cid:21) (cid:3)
23
34
(51)
(cid:22)2 (cid:3)
45
24
2(cid:24)
(cid:85)
(cid:23)(cid:22)
$
(cid:3)
Employee
Costs
Fi(cid:74)ed Asset
Related Costs Other Costs
Restructuring
(cid:44)otal
Costs
(48)
45
(cid:85)
(cid:21)0
76
(61)
((cid:24))
2
(cid:21)(cid:22)
58
(27)
(3)
((cid:24))
(cid:23)(cid:21) (cid:3)
(cid:21) (cid:3)
24
(5)
(23)
(5)
(23)
3
23
2
(cid:77)
4
4
(5)
(cid:85)
3 (cid:3)
(cid:22) (cid:3)
(25)
(30)
2(cid:24)
(cid:85)
12
34
(cid:85)
1
1(cid:21)
15
(cid:85)
(cid:85)
(14)
1(cid:22) (cid:3)
(cid:22)(cid:22)
(cid:24)8
(78)
(23)
(cid:22)(cid:19)
133
((cid:24)6)
(32)
5
(cid:23)(cid:19)
77
(37)
(8)
((cid:24))
11(cid:22)
Liability balance at June 30, 2022
(cid:3)
(cid:47)he e(cid:77)penses related to restructuring activities(cid:11) including restructuring related activities(cid:11) have been presented on the
consolidated statements of income as restructuring(cid:11) impairment(cid:11) and related e(cid:77)penses(cid:11) net. (cid:47)he accruals related to restructuring
activities have been recorded on the consolidated balance sheets under other current liabilities.
67
68
Amcor Annual Report 2022
(cid:38)ote (cid:23) - Property, Plant, and E(cid:67)uipment, (cid:38)et
(cid:38)ote 10 - (cid:31)oodwill and Other Intangible Assets
(cid:47)he components of property(cid:11) plant(cid:11) and equipment(cid:11) net(cid:11) (cid:76)ere as follo(cid:76)s(cid:25)
Changes in the carrying amount of good(cid:76)ill attributable to each reportable segment (cid:76)ere as follo(cid:76)s(cid:25)
Form 10-K
69
((cid:3) in millions)
Land and land improvements
Buildings and improvements
(cid:43)lant and equipment
(cid:47)otal property(cid:11) plant(cid:11) and equipment
Accumulated depreciation
Accumulated impairment
June 30, 2022
June 30, 2021
$
201 $
1(cid:11)323
5(cid:11)7(cid:24)7
7(cid:11)321
(3(cid:11)617)
(58)
221
1(cid:11)355
5(cid:11)(cid:24)37
7(cid:11)513
(3(cid:11)712)
(40)
(cid:44)otal property, plant, and e(cid:67)uipment, net
(cid:3)
3,(cid:20)(cid:18)(cid:20) (cid:3)
3,(cid:21)(cid:20)1
(cid:34)ood(cid:76)ill reclassified to assets held for sale(cid:11) net during fiscal year 2022 is related to the (cid:45)ussian business. (cid:45)efer to
(cid:31)epreciation e(cid:77)pense amounted to $3(cid:24)8 million(cid:11) $38(cid:24) million(cid:11) and $403 million for fiscal years 2022(cid:11) 2021(cid:11) and 2020(cid:11)
respectively. Amorti(cid:79)ation of assets under finance leases is included in depreciation e(cid:77)pense.
(cid:41)ote 6(cid:11) "(cid:35)eld for Sale and (cid:31)iscontinued Operations."
Other Intangible Assets, (cid:38)et
Other intangible assets(cid:11) net is comprised of the follo(cid:76)ing(cid:25)
((cid:3) in millions)
Balance as of June 30, 2020
(cid:31)isposals
Foreign currency translation
Balance as of June 30, 2021
(cid:35)eld for sale reclassification
Foreign currency translation
Balance as of June 30, 2022
((cid:3) in millions)
Customer relationships
Computer soft(cid:76)are
Other (2)
(cid:44)otal other intangible assets
((cid:3) in millions)
Customer relationships
Computer soft(cid:76)are
Other (2)
(cid:44)otal other intangible assets
intangible assets.
((cid:3) in millions)
Fiscal year 2023
Fiscal year 2024
Fiscal year 2025
Fiscal year 2026
Fiscal year 2027
Fle(cid:74)ibles
Segment
Rigid
Pac(cid:61)aging
Segment
(cid:44)otal
(cid:3)
(cid:18),3(cid:20)(cid:23) (cid:3)
(cid:23)(cid:21)0 (cid:3)
(cid:19),33(cid:23)
(5)
73
(cid:18),(cid:18)3(cid:21)
(16)
(114)
(cid:3)
(cid:18),30(cid:21) (cid:3)
(cid:85)
12
(cid:23)(cid:22)2
(cid:85)
(4)
(cid:23)(cid:21)(cid:22) (cid:3)
(5)
85
(cid:19),(cid:18)1(cid:23)
(16)
(118)
(cid:19),2(cid:22)(cid:19)
(cid:31)ross Carrying
Amount
(cid:38)et Carrying
Amount
June 30, 2022
Accumulated
Amorti(cid:76)ation and
Impairment (1)
$
(cid:3)
$
(cid:3)
1(cid:11)(cid:24)70 $
235
323
2,(cid:19)2(cid:22) (cid:3)
1(cid:11)(cid:24)86 $
233
321
2,(cid:19)(cid:18)0 (cid:3)
(52(cid:24)) $
(162)
(180)
((cid:22)(cid:21)1) (cid:3)
(405) $
(156)
(144)
((cid:21)0(cid:19)) (cid:3)
(cid:31)ross Carrying
Amount
(cid:38)et Carrying
Amount
June 30, 2021
Accumulated
Amorti(cid:76)ation and
Impairment (1)
1(cid:11)441
73
143
1,(cid:20)(cid:19)(cid:21)
1(cid:11)581
77
177
1,(cid:22)3(cid:19)
173
16(cid:24)
156
152
138
(1) Accumulated amorti(cid:79)ation and impairment includes $33 million and $34 million for (cid:37)une 30(cid:11) 2022 and 2021(cid:11) respectively(cid:11) of
accumulated impairment in the Other category.
(2) Other includes $16 million and $17 million for (cid:37)une 30(cid:11) 2022 and 2021(cid:11) respectively(cid:11) of acquired intellectual property assets not yet
being amorti(cid:79)ed as the related (cid:45)(cid:5)(cid:31) pro(cid:63)ects have not yet been completed.
Amorti(cid:79)ation e(cid:77)pense for intangible assets during the fiscal years 2022(cid:11) 2021(cid:11) and 2020 (cid:76)as $180 million(cid:11) $182
million(cid:11) and $204 million(cid:11) respectively. (cid:31)uring the last three fiscal years(cid:11) there (cid:76)ere no impairment charges recorded on
Estimated future amorti(cid:79)ation e(cid:77)pense for intangible assets is as follo(cid:76)s(cid:25)
Amorti(cid:76)ation
$
6(cid:24)
Amcor Annual Report 2022
70
69
Form 10-K
(cid:26)0
(cid:38)ote (cid:23) - Property, Plant, and E(cid:67)uipment, (cid:38)et
(cid:38)ote 10 - (cid:31)oodwill and Other Intangible Assets
(cid:47)he components of property(cid:11) plant(cid:11) and equipment(cid:11) net(cid:11) (cid:76)ere as follo(cid:76)s(cid:25)
Changes in the carrying amount of good(cid:76)ill attributable to each reportable segment (cid:76)ere as follo(cid:76)s(cid:25)
((cid:3) in millions)
Land and land improvements
Buildings and improvements
(cid:43)lant and equipment
(cid:47)otal property(cid:11) plant(cid:11) and equipment
Accumulated depreciation
Accumulated impairment
June 30, 2022
June 30, 2021
$
201 $
1(cid:11)323
5(cid:11)7(cid:24)7
7(cid:11)321
(3(cid:11)617)
(58)
221
1(cid:11)355
5(cid:11)(cid:24)37
7(cid:11)513
(3(cid:11)712)
(40)
((cid:3) in millions)
Balance as of June 30, 2020
(cid:31)isposals
Foreign currency translation
Balance as of June 30, 2021
(cid:35)eld for sale reclassification
Foreign currency translation
Balance as of June 30, 2022
Fle(cid:74)ibles
Segment
Rigid
Pac(cid:61)aging
Segment
(cid:44)otal
(cid:3)
(cid:18),3(cid:20)(cid:23) (cid:3)
(cid:23)(cid:21)0 (cid:3)
(5)
73
(cid:18),(cid:18)3(cid:21)
(16)
(114)
(cid:18),30(cid:21) (cid:3)
(cid:3)
(cid:85)
12
(cid:23)(cid:22)2
(cid:85)
(4)
(cid:23)(cid:21)(cid:22) (cid:3)
(cid:19),33(cid:23)
(5)
85
(cid:19),(cid:18)1(cid:23)
(16)
(118)
(cid:19),2(cid:22)(cid:19)
(cid:44)otal property, plant, and e(cid:67)uipment, net
(cid:3)
3,(cid:20)(cid:18)(cid:20) (cid:3)
3,(cid:21)(cid:20)1
(cid:34)ood(cid:76)ill reclassified to assets held for sale(cid:11) net during fiscal year 2022 is related to the (cid:45)ussian business. (cid:45)efer to
(cid:31)epreciation e(cid:77)pense amounted to $3(cid:24)8 million(cid:11) $38(cid:24) million(cid:11) and $403 million for fiscal years 2022(cid:11) 2021(cid:11) and 2020(cid:11)
respectively. Amorti(cid:79)ation of assets under finance leases is included in depreciation e(cid:77)pense.
(cid:41)ote 6(cid:11) "(cid:35)eld for Sale and (cid:31)iscontinued Operations."
Other Intangible Assets, (cid:38)et
Other intangible assets(cid:11) net is comprised of the follo(cid:76)ing(cid:25)
((cid:3) in millions)
Customer relationships
Computer soft(cid:76)are
Other (2)
(cid:44)otal other intangible assets
((cid:3) in millions)
Customer relationships
Computer soft(cid:76)are
Other (2)
(cid:44)otal other intangible assets
(cid:31)ross Carrying
Amount
June 30, 2022
Accumulated
Amorti(cid:76)ation and
Impairment (1)
(cid:38)et Carrying
Amount
1(cid:11)(cid:24)70 $
235
323
2,(cid:19)2(cid:22) (cid:3)
(52(cid:24)) $
(162)
(180)
((cid:22)(cid:21)1) (cid:3)
1(cid:11)441
73
143
1,(cid:20)(cid:19)(cid:21)
(cid:31)ross Carrying
Amount
June 30, 2021
Accumulated
Amorti(cid:76)ation and
Impairment (1)
(cid:38)et Carrying
Amount
1(cid:11)(cid:24)86 $
233
321
2,(cid:19)(cid:18)0 (cid:3)
(405) $
(156)
(144)
((cid:21)0(cid:19)) (cid:3)
1(cid:11)581
77
177
1,(cid:22)3(cid:19)
$
(cid:3)
$
(cid:3)
(1) Accumulated amorti(cid:79)ation and impairment includes $33 million and $34 million for (cid:37)une 30(cid:11) 2022 and 2021(cid:11) respectively(cid:11) of
accumulated impairment in the Other category.
(2) Other includes $16 million and $17 million for (cid:37)une 30(cid:11) 2022 and 2021(cid:11) respectively(cid:11) of acquired intellectual property assets not yet
being amorti(cid:79)ed as the related (cid:45)(cid:5)(cid:31) pro(cid:63)ects have not yet been completed.
Amorti(cid:79)ation e(cid:77)pense for intangible assets during the fiscal years 2022(cid:11) 2021(cid:11) and 2020 (cid:76)as $180 million(cid:11) $182
million(cid:11) and $204 million(cid:11) respectively. (cid:31)uring the last three fiscal years(cid:11) there (cid:76)ere no impairment charges recorded on
intangible assets.
Estimated future amorti(cid:79)ation e(cid:77)pense for intangible assets is as follo(cid:76)s(cid:25)
((cid:3) in millions)
Fiscal year 2023
Fiscal year 2024
Fiscal year 2025
Fiscal year 2026
Fiscal year 2027
Amorti(cid:76)ation
$
173
16(cid:24)
156
152
138
6(cid:24)
70
Amcor Annual Report 2022
Form 10-K
71
(cid:38)ote 11 - Fair Value (cid:37)easurements
(cid:47)he fair values of the Company(cid:6)s financial assets and financial liabilities listed belo(cid:76) reflect the amounts that (cid:76)ould be
received to sell the assets or paid to transfer the liabilities in an orderly transaction bet(cid:76)een mar(cid:64)et participants at the
measurement date (e(cid:77)it price).
(cid:47)he Company(cid:6)s non(cid:12)derivative financial instruments primarily include cash and cash equivalents(cid:11) trade receivables(cid:11)
trade payables(cid:11) short(cid:12)term debt(cid:11) and long(cid:12)term debt. At (cid:37)une 30(cid:11) 2022 and 2021(cid:11) the carrying value of these financial
instruments(cid:11) e(cid:77)cluding long(cid:12)term debt(cid:11) appro(cid:77)imated fair value because of the short(cid:12)term nature of these instruments.
((cid:3) in millions)
Assets
Commodity contracts
For(cid:76)ard e(cid:77)change contracts
Interest rate s(cid:76)aps
Level 1
Level 2
Level 3
(cid:44)otal
June 30, 2021
(cid:85) $
14 $
(cid:85) $
(cid:85)
(cid:85)
7
1(cid:24)
(cid:85)
(cid:85)
(cid:44)otal assets measured at fair value
(cid:77) (cid:3)
(cid:18)0 (cid:3)
(cid:77) (cid:3)
Fair value disclosures are classified based on the fair value hierarchy. See (cid:41)ote 2(cid:11) "Significant Accounting (cid:43)olicies(cid:11)"
Liabilities
for information about the Company(cid:6)s fair value hierarchy.
(cid:47)he carrying value of long(cid:12)term debt (cid:76)ith variable interest rates appro(cid:77)imates its fair value. (cid:47)he fair value of the
Company(cid:6)s long(cid:12)term debt (cid:76)ith fi(cid:77)ed interest rates is based on mar(cid:64)et prices(cid:11) if available(cid:11) or e(cid:77)pected future cash flo(cid:76)s
discounted at the current interest rate for financial liabilities (cid:76)ith similar ris(cid:64) profiles.
(cid:47)he carrying values and estimated fair values of long(cid:12)term debt (cid:76)ith fi(cid:77)ed interest rates (including fi(cid:77)ed(cid:12)rate debt (cid:76)ith
designated receive(cid:12)fi(cid:77)ed(cid:14)pay(cid:12)variable interest rate s(cid:76)aps(cid:11) e(cid:77)cluding finance leases) (cid:76)ere as follo(cid:76)s(cid:25)
((cid:3) in millions)
(cid:47)otal long(cid:12)term debt (cid:76)ith fi(cid:77)ed interest rates (e(cid:77)cluding
commercial paper and finance leases)
June 30, 2022
June 30, 2021
Carrying
Value
Fair Value
(Level 2)
Carrying
Value
Fair Value
(Level 2)
$
3(cid:11)(cid:24)52 $
3(cid:11)6(cid:24)4 $
4(cid:11)325 $
4(cid:11)558
Assets and Liabilities (cid:37)easured and Recorded at Fair Value on a Recurring Basis
Additionally(cid:11) the Company measures and records certain assets and liabilities(cid:11) including derivative instruments and
contingent purchase consideration liabilities(cid:11) at fair value. (cid:47)he follo(cid:76)ing table summari(cid:79)es the fair value of these instruments(cid:11)
(cid:76)hich are measured at fair value on a recurring basis(cid:11) by level(cid:11) (cid:76)ithin the fair value hierarchy(cid:25)
((cid:3) in millions)
Assets
Commodity contracts
For(cid:76)ard e(cid:77)change contracts
(cid:44)otal assets measured at fair value
Liabilities
Contingent purchase consideration liabilities
Commodity contracts
For(cid:76)ard e(cid:77)change contracts
Interest rate s(cid:76)aps
(cid:44)otal liabilities measured at fair value
$
(cid:3)
$
(cid:3)
Level 1
Level 2
Level 3
(cid:44)otal
June 30, 2022
(cid:85) $
(cid:85)
(cid:77) (cid:3)
6 $
7
13 (cid:3)
(cid:85) $
(cid:85)
(cid:77) (cid:3)
(cid:85) $
(cid:85) $
16 $
(cid:85)
(cid:85)
(cid:85)
3
17
6(cid:24)
(cid:85)
(cid:85)
(cid:85)
(cid:77) (cid:3)
(cid:22)(cid:23) (cid:3)
1(cid:20) (cid:3)
6
7
13
16
3
17
6(cid:24)
10(cid:19)
$
(cid:3)
$
(cid:3)
14
7
1(cid:24)
(cid:18)0
18
4
22
Contingent purchase consideration liabilities
For(cid:76)ard e(cid:77)change contracts
(cid:44)otal liabilities measured at fair value
(cid:85) $
(cid:85)
(cid:77) (cid:3)
(cid:85) $
4
(cid:18) (cid:3)
18 $
(cid:85)
1(cid:22) (cid:3)
(cid:47)he fair value of the commodity contracts (cid:76)as determined using a discounted cash flo(cid:76) analysis based on the terms of
the contracts and observed mar(cid:64)et for(cid:76)ard prices discounted at a currency specific rate. For(cid:76)ard e(cid:77)change contract fair values
(cid:76)ere determined based on quoted prices for similar assets and liabilities in active mar(cid:64)ets using inputs such as currency rates
and for(cid:76)ard points. (cid:47)he fair value of the interest rate s(cid:76)aps (cid:76)as determined using a discounted cash flo(cid:76) method based on
mar(cid:64)et based s(cid:76)ap yield curves(cid:11) ta(cid:64)ing into account current interest rates.
Contingent purchase consideration obligations arise from business acquisitions. As of (cid:37)une 30(cid:11) 2022(cid:11) the Company(cid:6)s
contingent purchase consideration liabilities consist of a $10 million liability that is contingent on future royalty income
generated by (cid:31)iscma A(cid:34)(cid:11) a subsidiary acquired in (cid:40)arch 2017(cid:11) (cid:76)ith the $6 million balance relating to consideration for small
business acquisitions (cid:76)here payments are contingent on the Company vacating a certain property or performance criteria. (cid:47)he
fair value of the contingent purchase consideration liabilities (cid:76)as determined for each arrangement individually. (cid:47)he fair value
(cid:76)as determined using the income approach (cid:76)ith significant inputs that are not observable in the mar(cid:64)et. (cid:38)ey assumptions
include the discount rates consistent (cid:76)ith the level of ris(cid:64) of achievement and probability ad(cid:63)usted financial pro(cid:63)ections. (cid:47)he
e(cid:77)pected outcomes are recorded at net present value(cid:11) (cid:76)hich requires ad(cid:63)ustment over the life for changes in ris(cid:64)s and
probabilities. Changes arising from modifications in forecasts related to contingent consideration are e(cid:77)pected to be immaterial.
(cid:47)he fair value of contingent purchase consideration liabilities is included in other current liabilities and other non(cid:12)
current liabilities in the consolidated balance sheets. (cid:47)he change in fair value of the contingent purchase consideration
liabilities(cid:11) (cid:76)hich (cid:76)as included in other income(cid:11) net is due to the passage of time and changes in the probability of achievement
used to develop the estimate.
(cid:47)he follo(cid:76)ing table sets forth a summary of changes in the value of the Company(cid:6)s Level 3 financial liabilities(cid:25)
((cid:3) in millions)
Fair value at the beginning of the year
Changes in fair value of Level 3 liabilities
(cid:43)ayments
Foreign currency translation
Fair value at the end of the year
June 30,
2021
2022
2020
1(cid:22) (cid:3)
1(cid:19) (cid:3)
(cid:85)
(1)
(1)
2
(cid:85)
1
1(cid:20) (cid:3)
1(cid:22) (cid:3)
1(cid:18)
1
(cid:85)
(cid:85)
1(cid:19)
(cid:3)
(cid:3)
Assets and Liabilities (cid:37)easured and Recorded at Fair Value on a (cid:38)onrecurring Basis
In addition to assets and liabilities that are recorded at fair value on a recurring basis(cid:11) the Company records assets and
liabilities at fair value on a nonrecurring basis. (cid:47)he Company measures certain assets(cid:11) including technology intangible assets(cid:11)
equity method and other investments(cid:11) long(cid:12)lived assets held for sale(cid:11) and other long(cid:12)lived and intangible assets at fair value on a
nonrecurring basis (cid:76)hen they are deemed to be other than temporarily impaired. (cid:47)he fair values of these assets are determined(cid:11)
(cid:76)hen applicable(cid:11) based on valuation techniques using the best information available(cid:11) and may include quoted mar(cid:64)et prices(cid:11)
mar(cid:64)et comparables(cid:11) and discounted cash flo(cid:76) pro(cid:63)ections.
71
Amcor Annual Report 2022
72
71
Form 10-K
(cid:26)2
(cid:38)ote 11 - Fair Value (cid:37)easurements
(cid:47)he fair values of the Company(cid:6)s financial assets and financial liabilities listed belo(cid:76) reflect the amounts that (cid:76)ould be
received to sell the assets or paid to transfer the liabilities in an orderly transaction bet(cid:76)een mar(cid:64)et participants at the
measurement date (e(cid:77)it price).
(cid:47)he Company(cid:6)s non(cid:12)derivative financial instruments primarily include cash and cash equivalents(cid:11) trade receivables(cid:11)
trade payables(cid:11) short(cid:12)term debt(cid:11) and long(cid:12)term debt. At (cid:37)une 30(cid:11) 2022 and 2021(cid:11) the carrying value of these financial
instruments(cid:11) e(cid:77)cluding long(cid:12)term debt(cid:11) appro(cid:77)imated fair value because of the short(cid:12)term nature of these instruments.
((cid:3) in millions)
Assets
Commodity contracts
For(cid:76)ard e(cid:77)change contracts
Interest rate s(cid:76)aps
(cid:44)otal assets measured at fair value
Fair value disclosures are classified based on the fair value hierarchy. See (cid:41)ote 2(cid:11) "Significant Accounting (cid:43)olicies(cid:11)"
Liabilities
Contingent purchase consideration liabilities
For(cid:76)ard e(cid:77)change contracts
(cid:44)otal liabilities measured at fair value
Level 1
Level 2
Level 3
(cid:44)otal
June 30, 2021
$
(cid:3)
$
(cid:3)
(cid:85) $
14 $
(cid:85) $
(cid:85)
(cid:85)
7
1(cid:24)
(cid:85)
(cid:85)
(cid:77) (cid:3)
(cid:18)0 (cid:3)
(cid:77) (cid:3)
(cid:85) $
(cid:85)
(cid:77) (cid:3)
(cid:85) $
4
(cid:18) (cid:3)
18 $
(cid:85)
1(cid:22) (cid:3)
14
7
1(cid:24)
(cid:18)0
18
4
22
(cid:47)he fair value of the commodity contracts (cid:76)as determined using a discounted cash flo(cid:76) analysis based on the terms of
the contracts and observed mar(cid:64)et for(cid:76)ard prices discounted at a currency specific rate. For(cid:76)ard e(cid:77)change contract fair values
(cid:76)ere determined based on quoted prices for similar assets and liabilities in active mar(cid:64)ets using inputs such as currency rates
and for(cid:76)ard points. (cid:47)he fair value of the interest rate s(cid:76)aps (cid:76)as determined using a discounted cash flo(cid:76) method based on
mar(cid:64)et based s(cid:76)ap yield curves(cid:11) ta(cid:64)ing into account current interest rates.
Contingent purchase consideration obligations arise from business acquisitions. As of (cid:37)une 30(cid:11) 2022(cid:11) the Company(cid:6)s
contingent purchase consideration liabilities consist of a $10 million liability that is contingent on future royalty income
generated by (cid:31)iscma A(cid:34)(cid:11) a subsidiary acquired in (cid:40)arch 2017(cid:11) (cid:76)ith the $6 million balance relating to consideration for small
business acquisitions (cid:76)here payments are contingent on the Company vacating a certain property or performance criteria. (cid:47)he
fair value of the contingent purchase consideration liabilities (cid:76)as determined for each arrangement individually. (cid:47)he fair value
(cid:76)as determined using the income approach (cid:76)ith significant inputs that are not observable in the mar(cid:64)et. (cid:38)ey assumptions
include the discount rates consistent (cid:76)ith the level of ris(cid:64) of achievement and probability ad(cid:63)usted financial pro(cid:63)ections. (cid:47)he
e(cid:77)pected outcomes are recorded at net present value(cid:11) (cid:76)hich requires ad(cid:63)ustment over the life for changes in ris(cid:64)s and
probabilities. Changes arising from modifications in forecasts related to contingent consideration are e(cid:77)pected to be immaterial.
(cid:47)he fair value of contingent purchase consideration liabilities is included in other current liabilities and other non(cid:12)
current liabilities in the consolidated balance sheets. (cid:47)he change in fair value of the contingent purchase consideration
liabilities(cid:11) (cid:76)hich (cid:76)as included in other income(cid:11) net is due to the passage of time and changes in the probability of achievement
used to develop the estimate.
(cid:47)he follo(cid:76)ing table sets forth a summary of changes in the value of the Company(cid:6)s Level 3 financial liabilities(cid:25)
((cid:3) in millions)
Fair value at the beginning of the year
Changes in fair value of Level 3 liabilities
(cid:43)ayments
Foreign currency translation
Fair value at the end of the year
2022
June 30,
2021
2020
(cid:3)
(cid:3)
1(cid:22) (cid:3)
(cid:85)
(1)
(1)
1(cid:20) (cid:3)
1(cid:19) (cid:3)
2
(cid:85)
1
1(cid:22) (cid:3)
1(cid:18)
1
(cid:85)
(cid:85)
1(cid:19)
Assets and Liabilities (cid:37)easured and Recorded at Fair Value on a (cid:38)onrecurring Basis
In addition to assets and liabilities that are recorded at fair value on a recurring basis(cid:11) the Company records assets and
liabilities at fair value on a nonrecurring basis. (cid:47)he Company measures certain assets(cid:11) including technology intangible assets(cid:11)
equity method and other investments(cid:11) long(cid:12)lived assets held for sale(cid:11) and other long(cid:12)lived and intangible assets at fair value on a
nonrecurring basis (cid:76)hen they are deemed to be other than temporarily impaired. (cid:47)he fair values of these assets are determined(cid:11)
(cid:76)hen applicable(cid:11) based on valuation techniques using the best information available(cid:11) and may include quoted mar(cid:64)et prices(cid:11)
mar(cid:64)et comparables(cid:11) and discounted cash flo(cid:76) pro(cid:63)ections.
71
72
Amcor Annual Report 2022
for information about the Company(cid:6)s fair value hierarchy.
(cid:47)he carrying value of long(cid:12)term debt (cid:76)ith variable interest rates appro(cid:77)imates its fair value. (cid:47)he fair value of the
Company(cid:6)s long(cid:12)term debt (cid:76)ith fi(cid:77)ed interest rates is based on mar(cid:64)et prices(cid:11) if available(cid:11) or e(cid:77)pected future cash flo(cid:76)s
discounted at the current interest rate for financial liabilities (cid:76)ith similar ris(cid:64) profiles.
(cid:47)he carrying values and estimated fair values of long(cid:12)term debt (cid:76)ith fi(cid:77)ed interest rates (including fi(cid:77)ed(cid:12)rate debt (cid:76)ith
designated receive(cid:12)fi(cid:77)ed(cid:14)pay(cid:12)variable interest rate s(cid:76)aps(cid:11) e(cid:77)cluding finance leases) (cid:76)ere as follo(cid:76)s(cid:25)
((cid:3) in millions)
(cid:47)otal long(cid:12)term debt (cid:76)ith fi(cid:77)ed interest rates (e(cid:77)cluding
commercial paper and finance leases)
June 30, 2022
June 30, 2021
Carrying
Value
Fair Value
(Level 2)
Carrying
Value
Fair Value
(Level 2)
$
3(cid:11)(cid:24)52 $
3(cid:11)6(cid:24)4 $
4(cid:11)325 $
4(cid:11)558
Assets and Liabilities (cid:37)easured and Recorded at Fair Value on a Recurring Basis
Additionally(cid:11) the Company measures and records certain assets and liabilities(cid:11) including derivative instruments and
contingent purchase consideration liabilities(cid:11) at fair value. (cid:47)he follo(cid:76)ing table summari(cid:79)es the fair value of these instruments(cid:11)
(cid:76)hich are measured at fair value on a recurring basis(cid:11) by level(cid:11) (cid:76)ithin the fair value hierarchy(cid:25)
Level 1
Level 2
Level 3
(cid:44)otal
June 30, 2022
(cid:85) $
(cid:85)
(cid:77) (cid:3)
6 $
7
13 (cid:3)
(cid:85) $
(cid:85)
(cid:77) (cid:3)
((cid:3) in millions)
Assets
Commodity contracts
For(cid:76)ard e(cid:77)change contracts
(cid:44)otal assets measured at fair value
Liabilities
Commodity contracts
For(cid:76)ard e(cid:77)change contracts
Interest rate s(cid:76)aps
$
(cid:3)
$
(cid:3)
Contingent purchase consideration liabilities
(cid:85) $
(cid:85) $
16 $
(cid:85)
(cid:85)
(cid:85)
3
17
6(cid:24)
(cid:85)
(cid:85)
(cid:85)
(cid:44)otal liabilities measured at fair value
(cid:77) (cid:3)
(cid:22)(cid:23) (cid:3)
1(cid:20) (cid:3)
6
7
13
16
3
17
6(cid:24)
10(cid:19)
Form 10-K
73
As further discussed in (cid:41)ote 6 (cid:84) (cid:86)(cid:35)eld for Sale and (cid:31)iscontinued Operations(cid:11)(cid:87) during the fourth quarter of fiscal year
2022(cid:11) the Company met the criteria to recogni(cid:79)e the related assets and liabilities of its (cid:45)ussian operations as held for sale (cid:76)hich
resulted in the Company remeasuring the disposal group at its fair value(cid:11) less cost to sell(cid:11) (cid:76)hich is considered a Level 3 fair
value measurement.
(cid:38)ote 12 - Derivative Instruments
In addition(cid:11) resulting from the effective disposal of non(cid:12)core businesses during the fiscal year ended (cid:37)une 30(cid:11) 2022(cid:11) the
the instruments as a fair value hedge or a cash flo(cid:76) hedge of a specific underlying e(cid:77)posure. On an ongoing basis(cid:11) the Company
Company has recorded a total loss of $34 million(cid:11) predominantly to ad(cid:63)ust the long(cid:12)lived assets to their fair value less cost to
sell. Of these losses(cid:11) $24 million are included (cid:76)ithin restructuring(cid:11) impairment(cid:11) and related e(cid:77)penses(cid:11) net as relating to the
(cid:45)ussia(cid:12)(cid:48)(cid:64)raine conflict (cid:76)ith the balance recorded in other income(cid:11) net in the consolidated statements of income. (cid:31)uring the
fiscal year ended (cid:37)une 30(cid:11) 2022(cid:11) further long(cid:12)lived assets (cid:76)ith a carrying value of $12 million (cid:76)ere (cid:76)ritten do(cid:76)n to a fair value
of (cid:79)ero as the Company(cid:6)s (cid:31)urban(cid:11) South Africa(cid:11) manufacturing facility (cid:76)as destroyed in a fire as the result of general civil
unrest. In addition(cid:11) other long(cid:12)lived assets in South Africa(cid:11) (cid:76)ith a carrying amount of $8 million(cid:11) (cid:76)ere (cid:76)ritten do(cid:76)n to their
estimated fair value of $4 million using level 3 inputs.
(cid:47)he Company sold its equity method investment in A(cid:40)(cid:49)I(cid:34) on September 30(cid:11) 2020. (cid:45)efer to (cid:41)ote 8(cid:11) "Equity (cid:40)ethod
and Other Investments."
(cid:47)he Company tests indefinite(cid:12)lived intangibles for impairment (cid:76)hen facts and circumstances indicate the carrying
value may not be recoverable from their undiscounted cash flo(cid:76)s. (cid:31)uring fiscal years 2022(cid:11) 2021 and 2020(cid:11) there (cid:76)ere no
indefinite(cid:12)lived intangible impairment charges recorded.
(cid:47)he Company periodically uses derivatives and other financial instruments to hedge e(cid:77)posures to interest rate(cid:11)
commodity price(cid:11) and currency ris(cid:64)s. (cid:47)he Company does not hold or issue derivative instruments for speculative or trading
purposes. For hedges that meet the hedge accounting criteria(cid:11) the Company(cid:11) at inception(cid:11) formally designates and documents
assesses and documents that its hedges have been and are e(cid:77)pected to continue to be highly effective.
Interest Rate Ris(cid:61)
(cid:47)he Company(cid:6)s policy is to manage e(cid:77)posure to interest rate ris(cid:64) by maintaining a mi(cid:77)ture of fi(cid:77)ed(cid:12)rate and variable(cid:12)
rate debt(cid:11) monitoring global interest rates(cid:11) and(cid:11) (cid:76)here appropriate(cid:11) hedging floating interest rate e(cid:77)posure or debt at fi(cid:77)ed
interest rates through various interest rate derivative instruments including(cid:11) but not limited to(cid:11) interest rate s(cid:76)aps(cid:11) cross(cid:12)
currency interest rate s(cid:76)aps(cid:11) and interest rate loc(cid:64)s. For interest rate s(cid:76)aps that are accounted for as fair value hedges(cid:11) the gains
and losses related to the changes in the fair value of the interest rate s(cid:76)aps are included in interest e(cid:77)pense and offset changes in
the fair value of the hedged portion of the underlying debt that are attributable to the changes in mar(cid:64)et interest rates. Changes
in the fair value of interest rate s(cid:76)aps that have not been designated as hedging instruments are reported in the accompanying
consolidated statements of income in other non(cid:12)operating income(cid:11) net.
(cid:31)uring (cid:31)ecember 2021(cid:11) the Company entered into an aggregate $250 million notional amount of receive(cid:12)fi(cid:77)ed(cid:14)pay
variable interest rate s(cid:76)aps(cid:11) (cid:76)hich (cid:76)ill mature on (cid:40)ay 15(cid:11) 2028. (cid:47)hese s(cid:76)aps (cid:76)ere designated as a fair value hedge against
50(cid:4) of $500 million of principal on the 4.50(cid:4) (cid:48).S. dollar notes due in (cid:40)ay 2028. Also during (cid:31)ecember 2021(cid:11) the Company
settled $100 million of a receive(cid:12)fi(cid:77)ed(cid:14)pay(cid:12)variable interest rate s(cid:76)ap as a result of the full redemption of $275 million 5.(cid:24)5(cid:4)
(cid:48).S. private placement notes at maturity. (cid:47)his interest rate s(cid:76)ap (cid:76)as designated as a fair value hedge at inception.
In (cid:37)uly 2021(cid:11) the Company terminated $400 million of its receive(cid:12)fi(cid:77)ed(cid:14)pay(cid:12)variable interest rate s(cid:76)aps that (cid:76)ere
designated as fair value hedges and received $2 million in net proceeds. (cid:47)his termination (cid:76)as in association (cid:76)ith the full
redemption of the $400 million 4.50(cid:4) (cid:48).S. dollar notes due October 2021(cid:11) completed on (cid:37)uly 15(cid:11) 2021. In (cid:37)uly 2021(cid:11) the
Company also terminated an aggregate amount of (cid:90)300 million (equivalent of $357 million) receive(cid:12)fi(cid:77)ed(cid:14)pay(cid:12)variable interest
rate s(cid:76)aps and received (cid:90)13 million (equivalent of $15 million) in net proceeds. (cid:47)hese interest rate s(cid:76)aps(cid:11) (cid:76)hich (cid:76)ere to
mature in (cid:40)arch 2023(cid:11) (cid:76)ere designated as fair value hedges against (cid:90)300 million of principal on the 2.75(cid:4) Euro bonds due
(cid:40)arch 2023. (cid:47)he gain on the termination of the aforementioned s(cid:76)aps is deferred and is being amorti(cid:79)ed to interest income
over the remaining contractual term of the 2.75(cid:4) Euro bonds due (cid:40)arch 2023.
As of (cid:37)une 30(cid:11) 2022 and 2021(cid:11) the total notional amount of the Company(cid:6)s receive(cid:12)fi(cid:77)ed(cid:14)pay(cid:12)variable interest rate
s(cid:76)aps (cid:76)as $650 million and $1(cid:11)257 million(cid:11) respectively.
Foreign Currency Ris(cid:61)
(cid:47)he Company manufactures and sells its products and finances operations in a number of countries throughout the
(cid:76)orld and(cid:11) as a result(cid:11) is e(cid:77)posed to movements in foreign currency e(cid:77)change rates. (cid:47)he purpose of the Company(cid:6)s foreign
currency hedging program is to manage the volatility associated (cid:76)ith the changes in e(cid:77)change rates.
(cid:47)o manage this e(cid:77)change rate ris(cid:64)(cid:11) the Company utili(cid:79)es for(cid:76)ard contracts. Contracts that qualify for hedge
accounting are designated as cash flo(cid:76) hedges of certain forecasted transactions denominated in foreign currencies. (cid:47)he
effective portion of the changes in fair value of these instruments is reported in accumulated other comprehensive loss
("AOCI") and reclassified into earnings in the same financial statement line item and in the same period or periods during
(cid:76)hich the related hedged transactions affect earnings. (cid:47)he ineffective portion is recogni(cid:79)ed in earnings over the life of the
hedging relationship in the same consolidated statements of income line item as the underlying hedged item. Changes in the fair
value of for(cid:76)ard contracts that have not been designated as hedging instruments are reported in the accompanying consolidated
As of (cid:37)une 30(cid:11) 2022 and 2021(cid:11) the notional amount of the outstanding for(cid:76)ard contracts (cid:76)as $1.0 billion and $1.1
statements of income.
billion(cid:11) respectively.
Commodity Ris(cid:61)
Certain ra(cid:76) materials used in the Company(cid:6)s production processes are sub(cid:63)ect to price volatility caused by (cid:76)eather(cid:11)
supply conditions(cid:11) political and economic variables(cid:11) and other unpredictable factors. (cid:47)he Company(cid:6)s policy is to minimi(cid:79)e
e(cid:77)posure to price volatility by passing through the commodity price ris(cid:64) to customers(cid:11) including the use of fi(cid:77)ed price s(cid:76)aps.
73
Amcor Annual Report 2022
74
2022(cid:11) the Company met the criteria to recogni(cid:79)e the related assets and liabilities of its (cid:45)ussian operations as held for sale (cid:76)hich
resulted in the Company remeasuring the disposal group at its fair value(cid:11) less cost to sell(cid:11) (cid:76)hich is considered a Level 3 fair
value measurement.
In addition(cid:11) resulting from the effective disposal of non(cid:12)core businesses during the fiscal year ended (cid:37)une 30(cid:11) 2022(cid:11) the
Company has recorded a total loss of $34 million(cid:11) predominantly to ad(cid:63)ust the long(cid:12)lived assets to their fair value less cost to
sell. Of these losses(cid:11) $24 million are included (cid:76)ithin restructuring(cid:11) impairment(cid:11) and related e(cid:77)penses(cid:11) net as relating to the
fiscal year ended (cid:37)une 30(cid:11) 2022(cid:11) further long(cid:12)lived assets (cid:76)ith a carrying value of $12 million (cid:76)ere (cid:76)ritten do(cid:76)n to a fair value
of (cid:79)ero as the Company(cid:6)s (cid:31)urban(cid:11) South Africa(cid:11) manufacturing facility (cid:76)as destroyed in a fire as the result of general civil
unrest. In addition(cid:11) other long(cid:12)lived assets in South Africa(cid:11) (cid:76)ith a carrying amount of $8 million(cid:11) (cid:76)ere (cid:76)ritten do(cid:76)n to their
estimated fair value of $4 million using level 3 inputs.
(cid:47)he Company sold its equity method investment in A(cid:40)(cid:49)I(cid:34) on September 30(cid:11) 2020. (cid:45)efer to (cid:41)ote 8(cid:11) "Equity (cid:40)ethod
and Other Investments."
(cid:47)he Company tests indefinite(cid:12)lived intangibles for impairment (cid:76)hen facts and circumstances indicate the carrying
value may not be recoverable from their undiscounted cash flo(cid:76)s. (cid:31)uring fiscal years 2022(cid:11) 2021 and 2020(cid:11) there (cid:76)ere no
indefinite(cid:12)lived intangible impairment charges recorded.
73
Form 10-K
74
As further discussed in (cid:41)ote 6 (cid:84) (cid:86)(cid:35)eld for Sale and (cid:31)iscontinued Operations(cid:11)(cid:87) during the fourth quarter of fiscal year
(cid:38)ote 12 - Derivative Instruments
(cid:47)he Company periodically uses derivatives and other financial instruments to hedge e(cid:77)posures to interest rate(cid:11)
commodity price(cid:11) and currency ris(cid:64)s. (cid:47)he Company does not hold or issue derivative instruments for speculative or trading
purposes. For hedges that meet the hedge accounting criteria(cid:11) the Company(cid:11) at inception(cid:11) formally designates and documents
the instruments as a fair value hedge or a cash flo(cid:76) hedge of a specific underlying e(cid:77)posure. On an ongoing basis(cid:11) the Company
assesses and documents that its hedges have been and are e(cid:77)pected to continue to be highly effective.
(cid:45)ussia(cid:12)(cid:48)(cid:64)raine conflict (cid:76)ith the balance recorded in other income(cid:11) net in the consolidated statements of income. (cid:31)uring the
Interest Rate Ris(cid:61)
(cid:47)he Company(cid:6)s policy is to manage e(cid:77)posure to interest rate ris(cid:64) by maintaining a mi(cid:77)ture of fi(cid:77)ed(cid:12)rate and variable(cid:12)
rate debt(cid:11) monitoring global interest rates(cid:11) and(cid:11) (cid:76)here appropriate(cid:11) hedging floating interest rate e(cid:77)posure or debt at fi(cid:77)ed
interest rates through various interest rate derivative instruments including(cid:11) but not limited to(cid:11) interest rate s(cid:76)aps(cid:11) cross(cid:12)
currency interest rate s(cid:76)aps(cid:11) and interest rate loc(cid:64)s. For interest rate s(cid:76)aps that are accounted for as fair value hedges(cid:11) the gains
and losses related to the changes in the fair value of the interest rate s(cid:76)aps are included in interest e(cid:77)pense and offset changes in
the fair value of the hedged portion of the underlying debt that are attributable to the changes in mar(cid:64)et interest rates. Changes
in the fair value of interest rate s(cid:76)aps that have not been designated as hedging instruments are reported in the accompanying
consolidated statements of income in other non(cid:12)operating income(cid:11) net.
(cid:31)uring (cid:31)ecember 2021(cid:11) the Company entered into an aggregate $250 million notional amount of receive(cid:12)fi(cid:77)ed(cid:14)pay
variable interest rate s(cid:76)aps(cid:11) (cid:76)hich (cid:76)ill mature on (cid:40)ay 15(cid:11) 2028. (cid:47)hese s(cid:76)aps (cid:76)ere designated as a fair value hedge against
50(cid:4) of $500 million of principal on the 4.50(cid:4) (cid:48).S. dollar notes due in (cid:40)ay 2028. Also during (cid:31)ecember 2021(cid:11) the Company
settled $100 million of a receive(cid:12)fi(cid:77)ed(cid:14)pay(cid:12)variable interest rate s(cid:76)ap as a result of the full redemption of $275 million 5.(cid:24)5(cid:4)
(cid:48).S. private placement notes at maturity. (cid:47)his interest rate s(cid:76)ap (cid:76)as designated as a fair value hedge at inception.
In (cid:37)uly 2021(cid:11) the Company terminated $400 million of its receive(cid:12)fi(cid:77)ed(cid:14)pay(cid:12)variable interest rate s(cid:76)aps that (cid:76)ere
designated as fair value hedges and received $2 million in net proceeds. (cid:47)his termination (cid:76)as in association (cid:76)ith the full
redemption of the $400 million 4.50(cid:4) (cid:48).S. dollar notes due October 2021(cid:11) completed on (cid:37)uly 15(cid:11) 2021. In (cid:37)uly 2021(cid:11) the
Company also terminated an aggregate amount of (cid:90)300 million (equivalent of $357 million) receive(cid:12)fi(cid:77)ed(cid:14)pay(cid:12)variable interest
rate s(cid:76)aps and received (cid:90)13 million (equivalent of $15 million) in net proceeds. (cid:47)hese interest rate s(cid:76)aps(cid:11) (cid:76)hich (cid:76)ere to
mature in (cid:40)arch 2023(cid:11) (cid:76)ere designated as fair value hedges against (cid:90)300 million of principal on the 2.75(cid:4) Euro bonds due
(cid:40)arch 2023. (cid:47)he gain on the termination of the aforementioned s(cid:76)aps is deferred and is being amorti(cid:79)ed to interest income
over the remaining contractual term of the 2.75(cid:4) Euro bonds due (cid:40)arch 2023.
As of (cid:37)une 30(cid:11) 2022 and 2021(cid:11) the total notional amount of the Company(cid:6)s receive(cid:12)fi(cid:77)ed(cid:14)pay(cid:12)variable interest rate
s(cid:76)aps (cid:76)as $650 million and $1(cid:11)257 million(cid:11) respectively.
Foreign Currency Ris(cid:61)
(cid:47)he Company manufactures and sells its products and finances operations in a number of countries throughout the
(cid:76)orld and(cid:11) as a result(cid:11) is e(cid:77)posed to movements in foreign currency e(cid:77)change rates. (cid:47)he purpose of the Company(cid:6)s foreign
currency hedging program is to manage the volatility associated (cid:76)ith the changes in e(cid:77)change rates.
(cid:47)o manage this e(cid:77)change rate ris(cid:64)(cid:11) the Company utili(cid:79)es for(cid:76)ard contracts. Contracts that qualify for hedge
accounting are designated as cash flo(cid:76) hedges of certain forecasted transactions denominated in foreign currencies. (cid:47)he
effective portion of the changes in fair value of these instruments is reported in accumulated other comprehensive loss
("AOCI") and reclassified into earnings in the same financial statement line item and in the same period or periods during
(cid:76)hich the related hedged transactions affect earnings. (cid:47)he ineffective portion is recogni(cid:79)ed in earnings over the life of the
hedging relationship in the same consolidated statements of income line item as the underlying hedged item. Changes in the fair
value of for(cid:76)ard contracts that have not been designated as hedging instruments are reported in the accompanying consolidated
statements of income.
As of (cid:37)une 30(cid:11) 2022 and 2021(cid:11) the notional amount of the outstanding for(cid:76)ard contracts (cid:76)as $1.0 billion and $1.1
billion(cid:11) respectively.
Commodity Ris(cid:61)
Certain ra(cid:76) materials used in the Company(cid:6)s production processes are sub(cid:63)ect to price volatility caused by (cid:76)eather(cid:11)
supply conditions(cid:11) political and economic variables(cid:11) and other unpredictable factors. (cid:47)he Company(cid:6)s policy is to minimi(cid:79)e
e(cid:77)posure to price volatility by passing through the commodity price ris(cid:64) to customers(cid:11) including the use of fi(cid:77)ed price s(cid:76)aps.
73
74
Amcor Annual Report 2022
Form 10-K
75
(cid:47)he Company purchases on behalf of customers fi(cid:77)ed price commodity s(cid:76)aps to offset the e(cid:77)posure of price volatility on the
underlying sales contracts. (cid:47)hese instruments are cash closed out on maturity and the related cost or benefit is passed through to
customers. Information about commodity price e(cid:77)posure is derived from supply forecasts submitted by customers and these
e(cid:77)posures are hedged by central treasury units. Changes in the fair value of commodity hedges are recogni(cid:79)ed in AOCI. (cid:47)he
cumulative amount of the hedge is recogni(cid:79)ed in the consolidated statements of income (cid:76)hen the forecasted transaction is
reali(cid:79)ed.
(cid:47)he Company had the follo(cid:76)ing outstanding commodity contracts to hedge forecasted purchases(cid:25)
Commodity
Aluminum
(cid:43)E(cid:47) resin
June 30, 2022
Volume
June 30, 2021
Volume
17(cid:11)040 tons
22(cid:11)62(cid:24) tons
16(cid:11)886(cid:11)520 lbs.
6(cid:11)312(cid:11)764 lbs.
(cid:47)he follo(cid:76)ing table provides the location of derivative instruments in the consolidated balance sheets(cid:25)
Balance Sheet Location
June 30, 2022
June 30, 2021
((cid:3) in millions)
Assets
Derivatives in cash flow hedging relationships:
Commodity contracts
For(cid:76)ard e(cid:77)change contracts
For(cid:76)ard e(cid:77)change contracts
Derivatives in fair value hedging relationships:
Interest rate s(cid:76)aps
Derivatives not designated as hedging instruments:
For(cid:76)ard e(cid:77)change contracts
(cid:44)otal current derivative contracts
Derivatives in fair value hedging relationships:
Interest rate s(cid:76)aps
(cid:44)otal non-current derivative contracts
(cid:44)otal derivative asset contracts
Liabilities
Derivatives in cash flow hedging relationships:
Commodity contracts
For(cid:76)ard e(cid:77)change contracts
Derivatives not designated as hedging instruments:
For(cid:76)ard e(cid:77)change contracts
(cid:44)otal current derivative contracts
Derivatives in cash flow hedging relationships:
Other current assets
Other current assets
Assets held for sale(cid:11) net
$
6 $
3
3
Other current assets
Other current assets
Other non(cid:12)current assets
(cid:85)
1
13
(cid:85)
(cid:85)
(cid:3)
13 (cid:3)
Other current liabilities
$
Other current liabilities
3 $
5
Other current liabilities
11
1(cid:24)
1
6(cid:24)
70
(cid:3)
(cid:22)(cid:23) (cid:3)
14
3
(cid:85)
15
4
36
4
4
(cid:18)0
(cid:85)
2
2
4
(cid:85)
(cid:85)
(cid:85)
(cid:18)
For(cid:76)ard e(cid:77)change contracts
Other non(cid:12)current liabilities
Derivatives in fair value hedging relationships:
Interest rate s(cid:76)aps
Other non(cid:12)current liabilities
(cid:44)otal non-current derivative contracts
(cid:44)otal derivative liability contracts
Certain derivative financial instruments are sub(cid:63)ect to netting arrangements and are eligible for offset. (cid:47)he Company
has made an accounting policy election not to offset the fair values of these instruments (cid:76)ithin the consolidated balance sheets.
75
Amcor Annual Report 2022
76
(cid:47)he follo(cid:76)ing tables provide the effects of derivative instruments on AOCI and in the consolidated statements of
income(cid:25)
((cid:3) in millions)
Derivatives in cash flow hedging relationships
Commodity contracts
For(cid:76)ard e(cid:77)change contracts
(cid:47)reasury loc(cid:64)s
(cid:44)otal
((cid:3) in millions)
Derivatives not designated as hedging instruments
For(cid:76)ard e(cid:77)change contracts
Cross currency interest rate s(cid:76)aps
(cid:44)otal
((cid:3) in millions)
Derivatives in fair value hedging relationships
Interest rate s(cid:76)aps
For(cid:76)ard e(cid:77)change contracts
(cid:44)otal
(cid:47)he changes in AOCI for effective derivatives (cid:76)ere as follo(cid:76)s(cid:25)
((cid:3) in millions)
Amounts reclassified into earnings
Commodity contracts
For(cid:76)ard e(cid:77)change contracts
(cid:47)reasury loc(cid:64)s
Change in fair value
Commodity contracts
For(cid:76)ard e(cid:77)change contracts
(cid:47)reasury loc(cid:64)s
(cid:47)a(cid:77) effect
(cid:44)otal
Location of (cid:31)ain (cid:13)
(Loss) Reclassified
from AOCI into
Income (Effective
Portion)
(cid:31)ain (cid:13) (Loss) Reclassified from AOCI
into Income (Effective Portion)
Years ended June 30,
2022
2021
2020
Cost of sales
(cid:41)et sales
Interest e(cid:77)pense
20 $
(cid:85)
(3)
1(cid:21) (cid:3)
1 $
(cid:85)
(2)
(1) (cid:3)
(6)
(1)
(cid:85)
((cid:21))
Location of (cid:31)ain (cid:13)
(Loss) Recogni(cid:76)ed
in the Consolidated
Income Statements
Other income(cid:11) net
Other income(cid:11) net
(cid:31)ain (cid:13) (Loss) Recogni(cid:76)ed in Income for
Derivatives not Designated as (cid:32)edging
Instruments
Years ended June 30,
2022
2021
2020
(45) $
(cid:85)
((cid:18)(cid:19)) (cid:3)
11 $
(4)
(cid:21) (cid:3)
(6)
(cid:85)
((cid:20))
Location of Loss
Recogni(cid:76)ed in the
Consolidated
Income Statements
Interest e(cid:77)pense
Other income(cid:11) net
Loss Recogni(cid:76)ed in Income for
Derivatives in Fair Value (cid:32)edging
Relationships
Years ended June 30,
2022
2021
2020
(75) $
(11)
((cid:22)(cid:20)) (cid:3)
(14) $
(cid:85)
(1(cid:18)) (cid:3)
(1)
(cid:85)
(1)
$
(cid:3)
$
(cid:3)
$
(cid:3)
Years ended June 30,
2022
2021
2020
$
(20) $
(1) $
(cid:85)
3
(cid:24)
(1)
(cid:85)
2
(cid:85)
2
22
3
(cid:85)
(cid:85)
(cid:3)
((cid:21)) (cid:3)
2(cid:20) (cid:3)
6
1
(cid:85)
(7)
(2)
(20)
(cid:85)
(22)
(cid:47)he Company purchases on behalf of customers fi(cid:77)ed price commodity s(cid:76)aps to offset the e(cid:77)posure of price volatility on the
(cid:47)he follo(cid:76)ing tables provide the effects of derivative instruments on AOCI and in the consolidated statements of
75
Form 10-K
76
2022
2020
(cid:31)ain (cid:13) (Loss) Reclassified from AOCI
into Income (Effective Portion)
Years ended June 30,
2021
$
(cid:3)
20 $
(cid:85)
(3)
1(cid:21) (cid:3)
1 $
(cid:85)
(2)
(1) (cid:3)
(6)
(1)
(cid:85)
((cid:21))
(cid:31)ain (cid:13) (Loss) Recogni(cid:76)ed in Income for
Derivatives not Designated as (cid:32)edging
Instruments
Years ended June 30,
2021
underlying sales contracts. (cid:47)hese instruments are cash closed out on maturity and the related cost or benefit is passed through to
income(cid:25)
customers. Information about commodity price e(cid:77)posure is derived from supply forecasts submitted by customers and these
e(cid:77)posures are hedged by central treasury units. Changes in the fair value of commodity hedges are recogni(cid:79)ed in AOCI. (cid:47)he
cumulative amount of the hedge is recogni(cid:79)ed in the consolidated statements of income (cid:76)hen the forecasted transaction is
(cid:47)he Company had the follo(cid:76)ing outstanding commodity contracts to hedge forecasted purchases(cid:25)
June 30, 2022
June 30, 2021
Volume
Volume
17(cid:11)040 tons
22(cid:11)62(cid:24) tons
16(cid:11)886(cid:11)520 lbs.
6(cid:11)312(cid:11)764 lbs.
((cid:3) in millions)
Derivatives in cash flow hedging relationships
Commodity contracts
For(cid:76)ard e(cid:77)change contracts
(cid:47)reasury loc(cid:64)s
(cid:44)otal
(cid:47)he follo(cid:76)ing table provides the location of derivative instruments in the consolidated balance sheets(cid:25)
Balance Sheet Location
June 30, 2022
June 30, 2021
reali(cid:79)ed.
Commodity
Aluminum
(cid:43)E(cid:47) resin
((cid:3) in millions)
Assets
((cid:3) in millions)
Derivatives not designated as hedging instruments
For(cid:76)ard e(cid:77)change contracts
Cross currency interest rate s(cid:76)aps
(cid:44)otal
((cid:3) in millions)
Derivatives in fair value hedging relationships
Interest rate s(cid:76)aps
For(cid:76)ard e(cid:77)change contracts
(cid:44)otal
Location of (cid:31)ain (cid:13)
(Loss) Reclassified
from AOCI into
Income (Effective
Portion)
Cost of sales
(cid:41)et sales
Interest e(cid:77)pense
Location of (cid:31)ain (cid:13)
(Loss) Recogni(cid:76)ed
in the Consolidated
Income Statements
Other income(cid:11) net
Other income(cid:11) net
Location of Loss
Recogni(cid:76)ed in the
Consolidated
Income Statements
Interest e(cid:77)pense
Other income(cid:11) net
Derivatives in cash flow hedging relationships:
Commodity contracts
For(cid:76)ard e(cid:77)change contracts
For(cid:76)ard e(cid:77)change contracts
Derivatives in fair value hedging relationships:
Interest rate s(cid:76)aps
Derivatives not designated as hedging instruments:
For(cid:76)ard e(cid:77)change contracts
(cid:44)otal current derivative contracts
Derivatives in fair value hedging relationships:
Interest rate s(cid:76)aps
(cid:44)otal non-current derivative contracts
(cid:44)otal derivative asset contracts
Liabilities
Derivatives in cash flow hedging relationships:
Commodity contracts
For(cid:76)ard e(cid:77)change contracts
Derivatives not designated as hedging instruments:
For(cid:76)ard e(cid:77)change contracts
(cid:44)otal current derivative contracts
Derivatives in cash flow hedging relationships:
Other current assets
$
6 $
Other current assets
Assets held for sale(cid:11) net
Other current assets
Other current assets
Other non(cid:12)current assets
(cid:3)
13 (cid:3)
Other current liabilities
$
Other current liabilities
3 $
5
Other current liabilities
3
3
(cid:85)
1
13
(cid:85)
(cid:85)
11
1(cid:24)
1
6(cid:24)
70
14
3
(cid:85)
15
4
36
4
4
(cid:18)0
(cid:85)
2
2
4
(cid:85)
(cid:85)
(cid:85)
(cid:18)
For(cid:76)ard e(cid:77)change contracts
Other non(cid:12)current liabilities
Derivatives in fair value hedging relationships:
Interest rate s(cid:76)aps
Other non(cid:12)current liabilities
(cid:44)otal non-current derivative contracts
(cid:44)otal derivative liability contracts
(cid:3)
(cid:22)(cid:23) (cid:3)
Certain derivative financial instruments are sub(cid:63)ect to netting arrangements and are eligible for offset. (cid:47)he Company
has made an accounting policy election not to offset the fair values of these instruments (cid:76)ithin the consolidated balance sheets.
(cid:47)he changes in AOCI for effective derivatives (cid:76)ere as follo(cid:76)s(cid:25)
((cid:3) in millions)
Amounts reclassified into earnings
Commodity contracts
For(cid:76)ard e(cid:77)change contracts
(cid:47)reasury loc(cid:64)s
Change in fair value
Commodity contracts
For(cid:76)ard e(cid:77)change contracts
(cid:47)reasury loc(cid:64)s
(cid:47)a(cid:77) effect
(cid:44)otal
Years ended June 30,
2021
2020
2022
$
(20) $
(1) $
(cid:85)
3
(cid:24)
(1)
(cid:85)
2
(cid:85)
2
22
3
(cid:85)
(cid:85)
(cid:3)
((cid:21)) (cid:3)
2(cid:20) (cid:3)
6
1
(cid:85)
(7)
(2)
(20)
(cid:85)
(22)
75
76
Amcor Annual Report 2022
Loss Recogni(cid:76)ed in Income for
Derivatives in Fair Value (cid:32)edging
Relationships
Years ended June 30,
2021
(75) $
(11)
((cid:22)(cid:20)) (cid:3)
(14) $
(cid:85)
(1(cid:18)) (cid:3)
(1)
(cid:85)
(1)
(45) $
(cid:85)
((cid:18)(cid:19)) (cid:3)
11 $
(4)
(cid:21) (cid:3)
(6)
(cid:85)
((cid:20))
$
(cid:3)
$
(cid:3)
2022
2020
2022
2020
(cid:38)ote 13 - Pension and Other Post-Retirement Plans
Changes in benefit obligations and plan assets (cid:76)ere as follo(cid:76)s(cid:25)
Form 10-K
77
(cid:47)he Company sponsors both funded and unfunded defined benefit pension plans that include statutory and mandated
benefit provision in some countries as (cid:76)ell as voluntary plans (generally closed to ne(cid:76) (cid:63)oiners). (cid:31)uring fiscal year 2022(cid:11) the
Company maintained 20 statutory and mandated defined benefit arrangements and 57 voluntary defined benefit plans.
(cid:47)he principal defined benefit plans are structured as follo(cid:76)s(cid:25)
Country
Canada
France (1)
(cid:34)ermany (1)
S(cid:76)it(cid:79)erland
(cid:48)nited (cid:38)ingdom
(cid:48)nited States of America
(cid:38)umber of
Funded
Plans
(cid:38)umber of
(cid:45)nfunded
Plans
Comment
2
3
2
1
2
3
1 Closed to ne(cid:76) entrants
3 plans are closed to ne(cid:76) entrants(cid:11) 2 plans are open to ne(cid:76)
entrants(cid:26) 2 plans are partially indemnified by (cid:45)io (cid:47)into Limited
12 plans are closed to ne(cid:76) entrants(cid:11) 1 is open to ne(cid:76) entrants(cid:26) 6
plans are partially indemnified by (cid:45)io (cid:47)into Limited
2
11
(cid:85) Open to ne(cid:76) entrants
(cid:85) Closed to ne(cid:76) entrants
2 Closed to ne(cid:76) entrants
(1) (cid:45)io (cid:47)into Limited assumes responsibility for its former employees(cid:6) retirement entitlements as of February 1(cid:11) 2010 (cid:76)hen Amcor
acquired Alcan (cid:43)ac(cid:64)aging from (cid:45)io (cid:47)into Limited.
(cid:41)et periodic benefit cost for benefit plans includes the follo(cid:76)ing components(cid:25)
((cid:3) in millions)
Service cost
Interest cost
E(cid:77)pected return on plan assets
Amorti(cid:79)ation of net loss
Amorti(cid:79)ation of prior service credit
Curtailment credit
Settlement costs
(cid:38)et periodic benefit cost
Years ended June 30,
2021
2020
2022
$
24 $
3(cid:24)
(61)
5
(3)
(cid:85)
8
27 $
40
(60)
8
(2)
(1)
3
(cid:3)
12 (cid:3)
1(cid:19) (cid:3)
23
4(cid:24)
(72)
6
(2)
(cid:85)
6
10
On October 12(cid:11) 2021(cid:11) the Company contracted (cid:76)ith (cid:43)acific Life Insurance Company to purchase a group annuity
contract and transfer $186 million of its pension plan assets and related benefit obligations. (cid:47)his transaction required a
remeasurement of the pension plan assets and obligations and resulted in the recognition of a $3 million non(cid:12)cash pension
settlement loss in the t(cid:76)elve months ended (cid:37)une 30(cid:11) 2022.
Benefit obligation at the beginning of the year
(cid:3)
2,022 (cid:3)
2,0(cid:19)1
June 30, 2022
June 30, 2021
((cid:3) in millions)
Change in benefit obligation:
Service cost
Interest cost
(cid:43)articipant contributions
Actuarial gain
(cid:43)lan curtailments
Settlements
Benefits paid
Administrative e(cid:77)penses
(cid:43)lan amendments
(cid:31)ivestitures
Foreign currency translation
Change in plan assets:
Actual return on plan assets
Employer contributions
(cid:43)articipant contributions
Benefits paid
Settlements
Administrative e(cid:77)penses
Foreign currency translation
sum transfers and payments.
assets(cid:25)
((cid:3) in millions)
(cid:43)ro(cid:63)ected benefit obligation
Fair value of plan assets
plan assets(cid:25)
((cid:3) in millions)
Accumulated benefit obligation
Fair value of plan assets
Benefit obligation at the end of the year
Accumulated benefit obligation at the end of the year
(113)
1,31(cid:18) (cid:3)
1,2(cid:20)(cid:23) (cid:3)
102
2,022
1,(cid:23)(cid:19)(cid:18)
Fair value of plan assets at the beginning of the year
1,(cid:21)(cid:19)(cid:23) (cid:3)
1,(cid:20)(cid:23)1
Fair value of plan assets at the end of the year
Funded status at the end of the year
(cid:3)
(cid:3)
1,1(cid:23)(cid:19) (cid:3)
(11(cid:23)) (cid:3)
1,(cid:21)(cid:19)(cid:23)
(2(cid:20)3)
Actuarial gains resulting in a decrease to the benefit obligation for the fiscal year ended (cid:37)une 30(cid:11) 2022(cid:11) (cid:76)ere primarily
due to a (cid:76)eighted average increase in discount rates for our pension plans of 1.7 percentage points. Settlement impact is
attributed to group annuity contracts(cid:11) primarily a $186 million contract (cid:76)ith (cid:43)acific Life Insurance Company(cid:11) and other lump
(cid:47)he follo(cid:76)ing table provides information for defined benefit plans (cid:76)ith a pro(cid:63)ected benefit obligation in e(cid:77)cess of plan
(cid:47)he follo(cid:76)ing table provides information for defined benefit plans (cid:76)ith an accumulated benefit obligation in e(cid:77)cess of
24
3(cid:24)
6
(cid:85)
(341)
(244)
(70)
(6)
1
(4)
(18(cid:24))
35
6
(70)
(244)
(6)
((cid:24)6)
27
40
6
(58)
(4)
(40)
(7(cid:24))
(7)
(15)
(1)
57
41
6
(7(cid:24))
(40)
(7)
(cid:24)0
June 30, 2022
June 30, 2021
3(cid:24)8 $
18(cid:24)
1(cid:11)387
1(cid:11)072
June 30, 2022
June 30, 2021
357 $
177
1(cid:11)351
1(cid:11)070
(cid:3)
(cid:3)
(cid:3)
$
$
77
Amcor Annual Report 2022
78
(cid:38)ote 13 - Pension and Other Post-Retirement Plans
Changes in benefit obligations and plan assets (cid:76)ere as follo(cid:76)s(cid:25)
(cid:47)he Company sponsors both funded and unfunded defined benefit pension plans that include statutory and mandated
((cid:3) in millions)
benefit provision in some countries as (cid:76)ell as voluntary plans (generally closed to ne(cid:76) (cid:63)oiners). (cid:31)uring fiscal year 2022(cid:11) the
Change in benefit obligation:
June 30, 2022
June 30, 2021
Company maintained 20 statutory and mandated defined benefit arrangements and 57 voluntary defined benefit plans.
Benefit obligation at the beginning of the year
(cid:3)
2,022 (cid:3)
2,0(cid:19)1
77
Form 10-K
78
(cid:47)he principal defined benefit plans are structured as follo(cid:76)s(cid:25)
(cid:38)umber of
Funded
Plans
(cid:38)umber of
(cid:45)nfunded
Plans
Country
Canada
France (1)
(cid:34)ermany (1)
S(cid:76)it(cid:79)erland
(cid:48)nited (cid:38)ingdom
(cid:48)nited States of America
2
3
2
1
2
3
Comment
1 Closed to ne(cid:76) entrants
3 plans are closed to ne(cid:76) entrants(cid:11) 2 plans are open to ne(cid:76)
2
entrants(cid:26) 2 plans are partially indemnified by (cid:45)io (cid:47)into Limited
12 plans are closed to ne(cid:76) entrants(cid:11) 1 is open to ne(cid:76) entrants(cid:26) 6
11
plans are partially indemnified by (cid:45)io (cid:47)into Limited
(cid:85) Open to ne(cid:76) entrants
(cid:85) Closed to ne(cid:76) entrants
2 Closed to ne(cid:76) entrants
(1) (cid:45)io (cid:47)into Limited assumes responsibility for its former employees(cid:6) retirement entitlements as of February 1(cid:11) 2010 (cid:76)hen Amcor
acquired Alcan (cid:43)ac(cid:64)aging from (cid:45)io (cid:47)into Limited.
(cid:41)et periodic benefit cost for benefit plans includes the follo(cid:76)ing components(cid:25)
((cid:3) in millions)
Service cost
Interest cost
E(cid:77)pected return on plan assets
Amorti(cid:79)ation of net loss
Amorti(cid:79)ation of prior service credit
Curtailment credit
Settlement costs
(cid:38)et periodic benefit cost
Years ended June 30,
2022
2021
2020
$
24 $
3(cid:24)
(61)
5
(3)
(cid:85)
8
27 $
40
(60)
8
(2)
(1)
3
(cid:3)
12 (cid:3)
1(cid:19) (cid:3)
23
4(cid:24)
(72)
6
(2)
(cid:85)
6
10
On October 12(cid:11) 2021(cid:11) the Company contracted (cid:76)ith (cid:43)acific Life Insurance Company to purchase a group annuity
contract and transfer $186 million of its pension plan assets and related benefit obligations. (cid:47)his transaction required a
remeasurement of the pension plan assets and obligations and resulted in the recognition of a $3 million non(cid:12)cash pension
settlement loss in the t(cid:76)elve months ended (cid:37)une 30(cid:11) 2022.
Service cost
Interest cost
(cid:43)articipant contributions
Actuarial gain
(cid:43)lan curtailments
Settlements
Benefits paid
Administrative e(cid:77)penses
(cid:43)lan amendments
(cid:31)ivestitures
Foreign currency translation
Benefit obligation at the end of the year
Accumulated benefit obligation at the end of the year
Change in plan assets:
Fair value of plan assets at the beginning of the year
Actual return on plan assets
Employer contributions
(cid:43)articipant contributions
Benefits paid
Settlements
Administrative e(cid:77)penses
Foreign currency translation
24
3(cid:24)
6
(341)
(cid:85)
(244)
(70)
(6)
1
(4)
27
40
6
(58)
(4)
(40)
(7(cid:24))
(7)
(15)
(1)
(113)
1,31(cid:18) (cid:3)
1,2(cid:20)(cid:23) (cid:3)
102
2,022
1,(cid:23)(cid:19)(cid:18)
1,(cid:21)(cid:19)(cid:23) (cid:3)
1,(cid:20)(cid:23)1
(cid:3)
(cid:3)
(cid:3)
(18(cid:24))
35
6
(70)
(244)
(6)
((cid:24)6)
57
41
6
(7(cid:24))
(40)
(7)
(cid:24)0
Fair value of plan assets at the end of the year
Funded status at the end of the year
(cid:3)
(cid:3)
1,1(cid:23)(cid:19) (cid:3)
(11(cid:23)) (cid:3)
1,(cid:21)(cid:19)(cid:23)
(2(cid:20)3)
Actuarial gains resulting in a decrease to the benefit obligation for the fiscal year ended (cid:37)une 30(cid:11) 2022(cid:11) (cid:76)ere primarily
due to a (cid:76)eighted average increase in discount rates for our pension plans of 1.7 percentage points. Settlement impact is
attributed to group annuity contracts(cid:11) primarily a $186 million contract (cid:76)ith (cid:43)acific Life Insurance Company(cid:11) and other lump
sum transfers and payments.
(cid:47)he follo(cid:76)ing table provides information for defined benefit plans (cid:76)ith a pro(cid:63)ected benefit obligation in e(cid:77)cess of plan
assets(cid:25)
((cid:3) in millions)
(cid:43)ro(cid:63)ected benefit obligation
Fair value of plan assets
June 30, 2022
June 30, 2021
$
3(cid:24)8 $
18(cid:24)
1(cid:11)387
1(cid:11)072
(cid:47)he follo(cid:76)ing table provides information for defined benefit plans (cid:76)ith an accumulated benefit obligation in e(cid:77)cess of
plan assets(cid:25)
((cid:3) in millions)
Accumulated benefit obligation
Fair value of plan assets
June 30, 2022
June 30, 2021
$
357 $
177
1(cid:11)351
1(cid:11)070
77
78
Amcor Annual Report 2022
$
((cid:24)1) $
(cid:44)otal recogni(cid:76)ed in other comprehensive (income)(cid:13)loss
(cid:3)
Years ended June 30,
2021
2020
2022
1
(5)
(8)
3
(1)
(14)
21
((cid:23)(cid:18)) (cid:3)
(58) $
(16)
(8)
(2)
2
(cid:85)
16
14
((cid:19)2) (cid:3)
41
(cid:85)
(6)
(6)
2
(cid:85)
(3)
(12)
1(cid:20)
((cid:3) in millions)
Changes in plan assets and benefit obligations recogni(cid:76)ed in other
comprehensive (income)(cid:13)loss:
(cid:41)et actuarial loss(cid:14)(gain) occurring during the year
(cid:41)et prior service loss(cid:14)(gain) occurring during the year
Amorti(cid:79)ation of actuarial loss
(cid:34)ain recogni(cid:79)ed due to settlement(cid:14)curtailment
Amorti(cid:79)ation of prior service credit
Acquisition(cid:14)disposal loss
Foreign currency translation
(cid:47)a(cid:77) effect
Form 10-K
79
(cid:47)he follo(cid:76)ing table provides information as to ho(cid:76) the funded status is recogni(cid:79)ed in the consolidated balance sheets(cid:25)
over the ne(cid:77)t fiscal year.
Contributions to the Company(cid:6)s defined benefit pension plans(cid:11) not including unfunded plans(cid:11) are e(cid:77)pected to be $18 million
((cid:3) in millions)
(cid:41)on(cid:12)current assets (cid:12) Employee benefit assets
Current liabilities (cid:12) Other current liabilities
(cid:41)on(cid:12)current liabilities (cid:12) Employee benefit obligations
Funded status
June 30, 2022
June 30, 2021
$
(cid:3)
8(cid:24) $
(7)
(201)
(11(cid:23)) (cid:3)
52
(8)
(307)
(2(cid:20)3)
Amounts recogni(cid:79)ed in other comprehensive (income)(cid:14)loss for the fiscal years ended are as follo(cid:76)s(cid:25)
(cid:47)he follo(cid:76)ing benefit payments for the succeeding five fiscal years and thereafter(cid:11) (cid:76)hich reflect e(cid:77)pected future
service(cid:11) as appropriate(cid:11) are e(cid:77)pected to be paid(cid:25)
$
70
75
73
76
76
408
(cid:47)he E(cid:45)ISA Benefit (cid:43)lan Committee in the (cid:48)nited States(cid:11) the (cid:43)ension (cid:43)lan Committee in S(cid:76)it(cid:79)erland(cid:11) and the (cid:47)rustees
of the pension plans in Canada(cid:11) Ireland(cid:11) and (cid:48)(cid:38) establish investment policies(cid:11) investment strategies(cid:11) allocation strategies(cid:11) and
investment ris(cid:64) profiles for the Company(cid:6)s pension plan assets and are required to consult (cid:76)ith the Company on changes to their
investment policy. In developing the e(cid:77)pected long(cid:12)term rate of return on plan assets at each measurement date(cid:11) the Company
considers the plan assets(cid:6) historical returns(cid:11) asset allocations(cid:11) and the anticipated future economic environment and long(cid:12)term
performance of the asset classes. (cid:50)hile appropriate consideration is given to recent and historical investment performance(cid:11) the
assumption represents management(cid:6)s best estimate of the long(cid:12)term prospective return.
(cid:47)he pension plan assets measured at fair value (cid:76)ere as follo(cid:76)s(cid:25)
June 30, 2022
Level 1
Level 2
Level 3
(cid:44)otal
$
111 $
(cid:24)8 $
(cid:85) $
(cid:3)
$
June 30, 2021
Level 1
Level 2
Level 3
(cid:44)otal
13(cid:24) $
186 $
(cid:85) $
40
33
7
(cid:85)
21
5
61
74
53
(cid:85)
32
12
278
100
121
(cid:85)
3
26
457
180
57
(cid:85)
8
15
(cid:85)
(cid:85)
2
216
(cid:85)
134
(cid:85)
(cid:85)
3
301
(cid:85)
181
20(cid:24)
318
133
130
216
24
165
325
518
254
113
301
40
208
((cid:3) in millions)
2023
2024
2025
2026
2027
2028(cid:12)2032
((cid:3) in millions)
Equity securities
(cid:34)overnment debt securities
Corporate debt securities
(cid:45)eal estate
Insurance contracts
Cash and cash equivalents
Other
(cid:44)otal
((cid:3) in millions)
Equity securities
(cid:34)overnment debt securities
Corporate debt securities
(cid:45)eal estate
Insurance contracts
Cash and cash equivalents
Other
(cid:44)otal
(Level 2).
E(cid:67)uity securities: (cid:49)alued primarily at the closing prices reported in the active mar(cid:64)et in (cid:76)hich the individual securities are
traded (Level 1)(cid:26) or based on significant observable inputs such as fund values provided by the independent fund administrators
(cid:3)
3(cid:21)1 (cid:3)
(cid:23)03 (cid:3)
(cid:18)(cid:22)(cid:19) (cid:3)
1,(cid:21)(cid:19)(cid:23)
Amounts in AOCI that have not yet been recogni(cid:79)ed as net periodic benefit cost(cid:11) as of fiscal year(cid:12)ends(cid:11) are as follo(cid:76)s(cid:25)
((cid:3) in millions)
(cid:41)et prior service credit
(cid:41)et actuarial loss
Accumulated other comprehensive loss at the end of the year
2022
June 30,
2021
2020
$
(cid:3)
(15) $
(20) $
65
185
(cid:19)0 (cid:3)
1(cid:20)(cid:19) (cid:3)
(6)
237
231
(cid:50)eighted(cid:12)average assumptions used to determine benefit obligations at fiscal year(cid:12)end (cid:76)ere(cid:25)
21(cid:21) (cid:3)
(cid:20)2(cid:20) (cid:3)
3(cid:19)2 (cid:3)
1,1(cid:23)(cid:19)
(cid:31)iscount rate
(cid:45)ate of compensation increase
2022
3.8 (cid:4)
2.3 (cid:4)
June 30,
2021
2.1 (cid:4)
1.7 (cid:4)
2020
2.0 (cid:4)
1.(cid:24) (cid:4)
(cid:50)eighted(cid:12)average assumptions used to determine net periodic benefit cost for the fiscal years ended (cid:76)ere(cid:25)
(cid:31)iscount rate
(cid:45)ate of compensation increase
E(cid:77)pected long(cid:12)term rate of return on plan assets
2022
2.1 (cid:4)
1.7 (cid:4)
3.8 (cid:4)
June 30,
2021
2.0 (cid:4)
1.(cid:24) (cid:4)
3.5 (cid:4)
2020
2.5 (cid:4)
2.1 (cid:4)
4.5 (cid:4)
(cid:50)here funded(cid:11) the Company and(cid:11) in some countries(cid:11) the employees ma(cid:64)e cash contributions into the pension fund. In
the case of unfunded plans(cid:11) the Company is responsible for benefit payments as they fall due. (cid:43)lan funding requirements are
generally determined by local regulation and(cid:14)or best practice and differ bet(cid:76)een countries. (cid:47)he local statutory funding positions
are not necessarily consistent (cid:76)ith the funded status disclosed on the consolidated balance sheets. For any funded plans in
deficit (as measured under local country guidelines)(cid:11) the Company agrees (cid:76)ith the trustees and plan fiduciaries to underta(cid:64)e
suitable funding programs to provide additional contributions over time in accordance (cid:76)ith local country requirements.
7(cid:24)
Amcor Annual Report 2022
80
(cid:47)he follo(cid:76)ing table provides information as to ho(cid:76) the funded status is recogni(cid:79)ed in the consolidated balance sheets(cid:25)
((cid:3) in millions)
(cid:41)on(cid:12)current assets (cid:12) Employee benefit assets
Current liabilities (cid:12) Other current liabilities
(cid:41)on(cid:12)current liabilities (cid:12) Employee benefit obligations
Funded status
June 30, 2022
June 30, 2021
$
(cid:3)
8(cid:24) $
(7)
(201)
(11(cid:23)) (cid:3)
52
(8)
(307)
(2(cid:20)3)
Amounts recogni(cid:79)ed in other comprehensive (income)(cid:14)loss for the fiscal years ended are as follo(cid:76)s(cid:25)
((cid:3) in millions)
Changes in plan assets and benefit obligations recogni(cid:76)ed in other
comprehensive (income)(cid:13)loss:
(cid:41)et actuarial loss(cid:14)(gain) occurring during the year
(cid:41)et prior service loss(cid:14)(gain) occurring during the year
Amorti(cid:79)ation of actuarial loss
(cid:34)ain recogni(cid:79)ed due to settlement(cid:14)curtailment
Amorti(cid:79)ation of prior service credit
Acquisition(cid:14)disposal loss
Foreign currency translation
(cid:47)a(cid:77) effect
Years ended June 30,
2022
2021
2020
$
((cid:24)1) $
1
(5)
(8)
3
(1)
(14)
21
(58) $
(16)
(8)
(2)
2
(cid:85)
16
14
41
(cid:85)
(6)
(6)
2
(cid:85)
(3)
(12)
1(cid:20)
2022
2020
June 30,
2021
$
(cid:3)
(15) $
(20) $
65
185
(cid:19)0 (cid:3)
1(cid:20)(cid:19) (cid:3)
(6)
237
231
2022
3.8 (cid:4)
2.3 (cid:4)
June 30,
2021
2.1 (cid:4)
1.7 (cid:4)
2020
2.0 (cid:4)
1.(cid:24) (cid:4)
2022
2.1 (cid:4)
1.7 (cid:4)
3.8 (cid:4)
June 30,
2021
2.0 (cid:4)
1.(cid:24) (cid:4)
3.5 (cid:4)
2020
2.5 (cid:4)
2.1 (cid:4)
4.5 (cid:4)
(cid:44)otal recogni(cid:76)ed in other comprehensive (income)(cid:13)loss
(cid:3)
((cid:23)(cid:18)) (cid:3)
((cid:19)2) (cid:3)
Amounts in AOCI that have not yet been recogni(cid:79)ed as net periodic benefit cost(cid:11) as of fiscal year(cid:12)ends(cid:11) are as follo(cid:76)s(cid:25)
((cid:3) in millions)
(cid:41)et prior service credit
(cid:41)et actuarial loss
Accumulated other comprehensive loss at the end of the year
(cid:50)eighted(cid:12)average assumptions used to determine benefit obligations at fiscal year(cid:12)end (cid:76)ere(cid:25)
(cid:50)eighted(cid:12)average assumptions used to determine net periodic benefit cost for the fiscal years ended (cid:76)ere(cid:25)
(cid:31)iscount rate
(cid:45)ate of compensation increase
(cid:31)iscount rate
(cid:45)ate of compensation increase
E(cid:77)pected long(cid:12)term rate of return on plan assets
(cid:50)here funded(cid:11) the Company and(cid:11) in some countries(cid:11) the employees ma(cid:64)e cash contributions into the pension fund. In
the case of unfunded plans(cid:11) the Company is responsible for benefit payments as they fall due. (cid:43)lan funding requirements are
generally determined by local regulation and(cid:14)or best practice and differ bet(cid:76)een countries. (cid:47)he local statutory funding positions
are not necessarily consistent (cid:76)ith the funded status disclosed on the consolidated balance sheets. For any funded plans in
deficit (as measured under local country guidelines)(cid:11) the Company agrees (cid:76)ith the trustees and plan fiduciaries to underta(cid:64)e
suitable funding programs to provide additional contributions over time in accordance (cid:76)ith local country requirements.
79
Form 10-K
(cid:27)0
Contributions to the Company(cid:6)s defined benefit pension plans(cid:11) not including unfunded plans(cid:11) are e(cid:77)pected to be $18 million
over the ne(cid:77)t fiscal year.
(cid:47)he follo(cid:76)ing benefit payments for the succeeding five fiscal years and thereafter(cid:11) (cid:76)hich reflect e(cid:77)pected future
service(cid:11) as appropriate(cid:11) are e(cid:77)pected to be paid(cid:25)
((cid:3) in millions)
2023
2024
2025
2026
2027
2028(cid:12)2032
$
70
75
73
76
76
408
(cid:47)he E(cid:45)ISA Benefit (cid:43)lan Committee in the (cid:48)nited States(cid:11) the (cid:43)ension (cid:43)lan Committee in S(cid:76)it(cid:79)erland(cid:11) and the (cid:47)rustees
of the pension plans in Canada(cid:11) Ireland(cid:11) and (cid:48)(cid:38) establish investment policies(cid:11) investment strategies(cid:11) allocation strategies(cid:11) and
investment ris(cid:64) profiles for the Company(cid:6)s pension plan assets and are required to consult (cid:76)ith the Company on changes to their
investment policy. In developing the e(cid:77)pected long(cid:12)term rate of return on plan assets at each measurement date(cid:11) the Company
considers the plan assets(cid:6) historical returns(cid:11) asset allocations(cid:11) and the anticipated future economic environment and long(cid:12)term
performance of the asset classes. (cid:50)hile appropriate consideration is given to recent and historical investment performance(cid:11) the
assumption represents management(cid:6)s best estimate of the long(cid:12)term prospective return.
(cid:47)he pension plan assets measured at fair value (cid:76)ere as follo(cid:76)s(cid:25)
((cid:3) in millions)
Equity securities
(cid:34)overnment debt securities
Corporate debt securities
(cid:45)eal estate
Insurance contracts
Cash and cash equivalents
Other
(cid:44)otal
((cid:3) in millions)
Equity securities
(cid:34)overnment debt securities
Corporate debt securities
(cid:45)eal estate
Insurance contracts
Cash and cash equivalents
Other
(cid:44)otal
June 30, 2022
Level 1
Level 2
Level 3
(cid:44)otal
$
111 $
(cid:24)8 $
(cid:85) $
40
33
7
(cid:85)
21
5
278
100
121
(cid:85)
3
26
(cid:85)
(cid:85)
2
216
(cid:85)
134
20(cid:24)
318
133
130
216
24
165
(cid:3)
$
21(cid:21) (cid:3)
(cid:20)2(cid:20) (cid:3)
3(cid:19)2 (cid:3)
1,1(cid:23)(cid:19)
June 30, 2021
Level 1
Level 2
Level 3
(cid:44)otal
13(cid:24) $
186 $
(cid:85) $
61
74
53
(cid:85)
32
12
457
180
57
(cid:85)
8
15
(cid:85)
(cid:85)
3
301
(cid:85)
181
325
518
254
113
301
40
208
(cid:3)
3(cid:21)1 (cid:3)
(cid:23)03 (cid:3)
(cid:18)(cid:22)(cid:19) (cid:3)
1,(cid:21)(cid:19)(cid:23)
E(cid:67)uity securities: (cid:49)alued primarily at the closing prices reported in the active mar(cid:64)et in (cid:76)hich the individual securities are
traded (Level 1)(cid:26) or based on significant observable inputs such as fund values provided by the independent fund administrators
(Level 2).
7(cid:24)
80
Amcor Annual Report 2022
(cid:31)overnment debt securities: (cid:49)alued at the closing prices reported in the active mar(cid:64)et in (cid:76)hich the individual securities are
traded (Level 1)(cid:26) or based on observable inputs such as fund values provided by independent fund administrators(cid:11) pricing of
similar agency issues(cid:11) live trading feeds from several vendors(cid:11) and benchmar(cid:64) yield (Level 2).
(cid:38)ote 1(cid:18) - Debt
Long-(cid:44)erm Debt
Form 10-K
81
Corporate debt securities: (cid:49)alued at the closing prices reported in the active mar(cid:64)et in (cid:76)hich the individual securities are
traded (Level 1)(cid:26) or based on observable inputs such as fund values provided by independent fund administrators(cid:11) or benchmar(cid:64)
yields(cid:11) reported trades(cid:11) bro(cid:64)er(cid:14)dealer quotes(cid:11) and issuer spreads. Inputs may be prioriti(cid:79)ed differently at certain times based on
mar(cid:64)et conditions (Level 2).
Real estate: (cid:49)alued at the closing prices reported in the active mar(cid:64)et in (cid:76)hich the individual securities are traded (Level 1)(cid:26) or
based on observable inputs such as fund values provided by independent fund administrators (Level 2).
Insurance contracts: (cid:49)alued based on the value of the associated insured liabilities.
Cash and cash e(cid:67)uivalents: Consist of cash on deposit (cid:76)ith bro(cid:64)ers and short(cid:12)term money mar(cid:64)et funds and are sho(cid:76)n net of
receivables and payables for securities traded at period end but not yet settled (Level 1) and cash indirectly held across
investment funds (Level 2). All cash and cash equivalents are stated at cost(cid:11) (cid:76)hich appro(cid:77)imates fair value.
Other:
Level 1: (cid:31)erivatives valued as closing prices reported in the active mar(cid:64)et.
Level 2: Assets held in diversified gro(cid:76)th funds(cid:11) pooled funds(cid:11) financing funds(cid:11) and derivatives(cid:11) (cid:76)here the value of
the assets are determined by the investment managers or other independent third parties(cid:11) based on observable inputs.
Level 3: Indemnified plan assets and pooled funds (equity(cid:11) credit(cid:11) macro(cid:12)orientated(cid:11) multi(cid:12)strategy(cid:11) cash(cid:11) and other).
(cid:47)he value of indemnified plan assets are determined based on the value of the liabilities that the assets cover. (cid:47)he
value of the pooled funds is calculated by the investment managers based on the net asset values of the underlying
portfolios.
(cid:47)he follo(cid:76)ing table sets forth a summary of changes in the value of the Company(cid:6)s Level 3 assets(cid:25)
((cid:3) in millions)
Balance as of June 30, 2021
Actual return on plan assets
(cid:43)urchases(cid:11) sales(cid:11) and settlements
(cid:47)ransfer out of Level 3
Foreign currency translation
Balance as of June 30, 2022
(cid:3)
(cid:18)(cid:22)(cid:19)
(61)
(17)
(5)
(50)
3(cid:19)2
(cid:3)
(cid:20),3(cid:18)0 (cid:3)
(1)
Indicates debt (cid:76)hich has been classified as long(cid:12)term liabilities in accordance (cid:76)ith the Company(cid:89)s ability and intent to refinance
such obligations on a long(cid:12)term basis.
(2) On (cid:37)uly 15(cid:11) 2021(cid:11) the Company redeemed all $400 million outstanding amount of the 4.50(cid:4) senior notes due October 2021.
(3) On (cid:31)ecember 15(cid:11) 2021(cid:11) the Company redeemed (cid:48).S. private placement notes of a principal amount of $275 million at maturity
using proceeds from the commercial paper program. (cid:47)he notes carried an interest rate of 5.(cid:24)5(cid:4).
(4) On (cid:40)ay 17(cid:11) 2022(cid:11) the Company issued (cid:48).S. dollar notes (cid:76)ith an aggregate principal amount of $500 million and a contractual
maturity in (cid:40)ay 2025. (cid:47)he notes pay a coupon of 4.00(cid:4) per annum(cid:11) payable semi(cid:12)annually in arrears. (cid:47)he notes are unsecured
senior obligations of the Company and are fully and unconditionally guaranteed by the Company and certain of its subsidiaries.
(5) (cid:45)elates to fair value hedge basis ad(cid:63)ustments relating to interest rate hedging.
(cid:47)he follo(cid:76)ing table summari(cid:79)es the contractual maturities of the Company(cid:6)s long(cid:12)term debt(cid:11) including current
maturities (e(cid:77)cluding payments for finance leases) at (cid:37)une 30(cid:11) 2022 for the succeeding five fiscal years(cid:25)
((cid:3) in millions)
2023
2024
2025 (1)
2026
2027 (2)
(1) Commercial paper denominated in (cid:48).S. dollars is classified as maturing in 2025(cid:11) supported by the 3(cid:12)year syndicated facility(cid:11) (cid:76)ith a
(2) Commercial paper denominated in Euros is classified as maturing in 2027(cid:11) supported by the 5(cid:12)year syndicated facility(cid:11) (cid:76)ith a 1(cid:12)year
1(cid:12)year option to e(cid:77)tend.
option to e(cid:77)tend.
81
Amcor Annual Report 2022
82
(cid:47)he follo(cid:76)ing table summari(cid:79)es the carrying value of long(cid:12)term debt at (cid:37)une 30(cid:11) 2022 and 2021(cid:11) respectively(cid:25)
(cid:37)aturities
Interest rates
2022
2021
June 30,
((cid:3) in millions)
(cid:44)erm debt
(cid:48).S. dollar notes(cid:11) $400 million (1)(2)
Oct 2021
(cid:48).S. private placement notes(cid:11) $275 million (1)(3)
(cid:31)ec 2021
4.50 (cid:4)
5.(cid:24)5 (cid:4)
2.75 (cid:4)
4.00 (cid:4)
3.63 (cid:4)
3.10 (cid:4)
1.13 (cid:4)
4.50 (cid:4)
2.63 (cid:4)
2.6(cid:24) (cid:4)
(cid:40)ar 2023
(cid:40)ay 2025
Apr 2026
Sep 2026
(cid:37)un 2027
(cid:40)ay 2028
(cid:37)un 2030
(cid:40)ay 2031
Euro bonds(cid:11) (cid:90)300 million (1)
(cid:48).S. dollar notes(cid:11) $500 million (4)
(cid:48).S. dollar notes(cid:11) $600 million
(cid:48).S. dollar notes(cid:11) $300 million
Euro bonds(cid:11) (cid:90)500 million
(cid:48).S. dollar notes(cid:11) $500 million
(cid:48).S. dollar notes(cid:11) $500 million
(cid:48).S. dollar notes(cid:11) $800 million
(cid:44)otal term debt
Ban(cid:64) loans
Commercial paper (1)
Other loans
Finance lease obligations
(cid:44)otal debt
Less(cid:25) current portion
(cid:44)otal long-term debt
Fair value hedge accounting ad(cid:63)ustments (5)
(cid:48)namorti(cid:79)ed discounts and debt issuance costs
(cid:85)
(cid:85)
313
500
600
300
522
500
500
800
(cid:18),03(cid:19)
22
2(cid:11)310
18
62
(6(cid:24))
(24)
(cid:20),3(cid:19)(cid:18)
(14)
400
275
357
(cid:85)
600
300
5(cid:24)5
500
500
800
(cid:18),32(cid:21)
4
1(cid:11)817
22
32
1(cid:24)
(30)
(cid:20),1(cid:23)1
(5)
(cid:20),1(cid:22)(cid:20)
$
317
(cid:85)
1(cid:11)755
600
1(cid:11)878
Insurance contracts: (cid:49)alued based on the value of the associated insured liabilities.
Cash and cash e(cid:67)uivalents: Consist of cash on deposit (cid:76)ith bro(cid:64)ers and short(cid:12)term money mar(cid:64)et funds and are sho(cid:76)n net of
receivables and payables for securities traded at period end but not yet settled (Level 1) and cash indirectly held across
investment funds (Level 2). All cash and cash equivalents are stated at cost(cid:11) (cid:76)hich appro(cid:77)imates fair value.
Other:
Level 1: (cid:31)erivatives valued as closing prices reported in the active mar(cid:64)et.
Level 2: Assets held in diversified gro(cid:76)th funds(cid:11) pooled funds(cid:11) financing funds(cid:11) and derivatives(cid:11) (cid:76)here the value of
the assets are determined by the investment managers or other independent third parties(cid:11) based on observable inputs.
Level 3: Indemnified plan assets and pooled funds (equity(cid:11) credit(cid:11) macro(cid:12)orientated(cid:11) multi(cid:12)strategy(cid:11) cash(cid:11) and other).
(cid:47)he value of indemnified plan assets are determined based on the value of the liabilities that the assets cover. (cid:47)he
value of the pooled funds is calculated by the investment managers based on the net asset values of the underlying
portfolios.
(cid:47)he follo(cid:76)ing table sets forth a summary of changes in the value of the Company(cid:6)s Level 3 assets(cid:25)
((cid:3) in millions)
Balance as of June 30, 2021
Actual return on plan assets
(cid:43)urchases(cid:11) sales(cid:11) and settlements
(cid:47)ransfer out of Level 3
Foreign currency translation
Balance as of June 30, 2022
(cid:3)
(cid:18)(cid:22)(cid:19)
(61)
(17)
(5)
(50)
3(cid:19)2
81
Form 10-K
(cid:27)2
(cid:31)overnment debt securities: (cid:49)alued at the closing prices reported in the active mar(cid:64)et in (cid:76)hich the individual securities are
(cid:38)ote 1(cid:18) - Debt
traded (Level 1)(cid:26) or based on observable inputs such as fund values provided by independent fund administrators(cid:11) pricing of
similar agency issues(cid:11) live trading feeds from several vendors(cid:11) and benchmar(cid:64) yield (Level 2).
Long-(cid:44)erm Debt
Corporate debt securities: (cid:49)alued at the closing prices reported in the active mar(cid:64)et in (cid:76)hich the individual securities are
traded (Level 1)(cid:26) or based on observable inputs such as fund values provided by independent fund administrators(cid:11) or benchmar(cid:64)
yields(cid:11) reported trades(cid:11) bro(cid:64)er(cid:14)dealer quotes(cid:11) and issuer spreads. Inputs may be prioriti(cid:79)ed differently at certain times based on
mar(cid:64)et conditions (Level 2).
(cid:47)he follo(cid:76)ing table summari(cid:79)es the carrying value of long(cid:12)term debt at (cid:37)une 30(cid:11) 2022 and 2021(cid:11) respectively(cid:25)
((cid:3) in millions)
(cid:44)erm debt
(cid:37)aturities
Interest rates
2022
2021
June 30,
Real estate: (cid:49)alued at the closing prices reported in the active mar(cid:64)et in (cid:76)hich the individual securities are traded (Level 1)(cid:26) or
based on observable inputs such as fund values provided by independent fund administrators (Level 2).
(cid:48).S. dollar notes(cid:11) $400 million (1)(2)
Oct 2021
(cid:48).S. private placement notes(cid:11) $275 million (1)(3)
(cid:31)ec 2021
(cid:40)ar 2023
(cid:40)ay 2025
Apr 2026
Sep 2026
(cid:37)un 2027
(cid:40)ay 2028
(cid:37)un 2030
(cid:40)ay 2031
Euro bonds(cid:11) (cid:90)300 million (1)
(cid:48).S. dollar notes(cid:11) $500 million (4)
(cid:48).S. dollar notes(cid:11) $600 million
(cid:48).S. dollar notes(cid:11) $300 million
Euro bonds(cid:11) (cid:90)500 million
(cid:48).S. dollar notes(cid:11) $500 million
(cid:48).S. dollar notes(cid:11) $500 million
(cid:48).S. dollar notes(cid:11) $800 million
(cid:44)otal term debt
Ban(cid:64) loans
Commercial paper (1)
Other loans
Finance lease obligations
Fair value hedge accounting ad(cid:63)ustments (5)
(cid:48)namorti(cid:79)ed discounts and debt issuance costs
(cid:44)otal debt
Less(cid:25) current portion
(cid:44)otal long-term debt
4.50 (cid:4)
5.(cid:24)5 (cid:4)
2.75 (cid:4)
4.00 (cid:4)
3.63 (cid:4)
3.10 (cid:4)
1.13 (cid:4)
4.50 (cid:4)
2.63 (cid:4)
2.6(cid:24) (cid:4)
(cid:85)
(cid:85)
313
500
600
300
522
500
500
800
(cid:18),03(cid:19)
22
2(cid:11)310
18
62
(6(cid:24))
(24)
(cid:20),3(cid:19)(cid:18)
(14)
(cid:3)
(cid:20),3(cid:18)0 (cid:3)
400
275
357
(cid:85)
600
300
5(cid:24)5
500
500
800
(cid:18),32(cid:21)
4
1(cid:11)817
22
32
1(cid:24)
(30)
(cid:20),1(cid:23)1
(5)
(cid:20),1(cid:22)(cid:20)
(1)
Indicates debt (cid:76)hich has been classified as long(cid:12)term liabilities in accordance (cid:76)ith the Company(cid:89)s ability and intent to refinance
such obligations on a long(cid:12)term basis.
(2) On (cid:37)uly 15(cid:11) 2021(cid:11) the Company redeemed all $400 million outstanding amount of the 4.50(cid:4) senior notes due October 2021.
(3) On (cid:31)ecember 15(cid:11) 2021(cid:11) the Company redeemed (cid:48).S. private placement notes of a principal amount of $275 million at maturity
using proceeds from the commercial paper program. (cid:47)he notes carried an interest rate of 5.(cid:24)5(cid:4).
(4) On (cid:40)ay 17(cid:11) 2022(cid:11) the Company issued (cid:48).S. dollar notes (cid:76)ith an aggregate principal amount of $500 million and a contractual
maturity in (cid:40)ay 2025. (cid:47)he notes pay a coupon of 4.00(cid:4) per annum(cid:11) payable semi(cid:12)annually in arrears. (cid:47)he notes are unsecured
senior obligations of the Company and are fully and unconditionally guaranteed by the Company and certain of its subsidiaries.
(5) (cid:45)elates to fair value hedge basis ad(cid:63)ustments relating to interest rate hedging.
(cid:47)he follo(cid:76)ing table summari(cid:79)es the contractual maturities of the Company(cid:6)s long(cid:12)term debt(cid:11) including current
maturities (e(cid:77)cluding payments for finance leases) at (cid:37)une 30(cid:11) 2022 for the succeeding five fiscal years(cid:25)
((cid:3) in millions)
2023
2024
2025 (1)
2026
2027 (2)
$
317
(cid:85)
1(cid:11)755
600
1(cid:11)878
(1) Commercial paper denominated in (cid:48).S. dollars is classified as maturing in 2025(cid:11) supported by the 3(cid:12)year syndicated facility(cid:11) (cid:76)ith a
1(cid:12)year option to e(cid:77)tend.
(2) Commercial paper denominated in Euros is classified as maturing in 2027(cid:11) supported by the 5(cid:12)year syndicated facility(cid:11) (cid:76)ith a 1(cid:12)year
option to e(cid:77)tend.
81
82
Amcor Annual Report 2022
Short-(cid:44)erm Debt
basis.
((cid:3) in millions)
Ban(cid:64) loans
Ban(cid:64) overdrafts
(cid:44)otal short-term debt
maturity.
Short(cid:12)term debt is generally used to fund (cid:76)or(cid:64)ing capital requirements. (cid:47)he Company has classified commercial paper
as long(cid:12)term at (cid:37)une 30(cid:11) 2022 in accordance (cid:76)ith the Company(cid:89)s ability and intent to refinance such obligations on a long(cid:12)term
(cid:47)he follo(cid:76)ing table summari(cid:79)es the carrying value of short(cid:12)term debt at (cid:37)une 30(cid:11) 2022 and 2021(cid:11) respectively(cid:25)
As of (cid:37)une 30(cid:11) 2022(cid:11) the Company paid a (cid:76)eighted(cid:12)average interest rate of 1.40(cid:4) per annum on short(cid:12)term debt(cid:11)
payable at maturity. As of (cid:37)une 30(cid:11) 2021(cid:11) the Company paid a (cid:76)eighted(cid:12)average interest rate of 6.10(cid:4) per annum(cid:11) payable at
June 30,
2022
2021
$
(cid:3)
32 $
104
13(cid:20) (cid:3)
45
53
(cid:23)(cid:22)
Form 10-K
83
(cid:16)a(cid:50)(cid:47) a(cid:50)(cid:40) o(cid:56)(cid:44)er (cid:48)oa(cid:50)s
(cid:47)he Company has entered into syndicated and bilateral multi(cid:12)currency credit facilities (cid:76)ith financial institutions. On
April 26(cid:11) 2022(cid:11) the Company terminated the three(cid:12)(cid:11) four(cid:12)(cid:11) and five(cid:12)year syndicated facility agreements(cid:11) (cid:76)hich collectively
provided for $3.8 billion of credit facilities. On the same day(cid:11) the Company entered into three(cid:12) and five(cid:12)year syndicated facility
agreements that each provide a revolving credit facility of $1.(cid:24) billion or $3.8 billion in total. (cid:47)he facilities are unsecured and
have contractual maturities in April 2025 and April 2027(cid:11) respectively. (cid:47)he agreements include customary terms and conditions
for a syndicated facility of this nature(cid:11) and the revolving tranches have t(cid:76)o 12(cid:12)month options available to management to
e(cid:77)tend the maturity date.
Interest charged on borro(cid:76)ings under the credit facilities is based on the applicable mar(cid:64)et rate plus the applicable
margin. As of (cid:37)une 30(cid:11) 2022 and 2021(cid:11) the Company(cid:6)s credit facilities amounted to $3.8 billion.
As of (cid:37)une 30(cid:11) 2022 and 2021(cid:11) the Company has $1.4 billion and $2.0 billion of undra(cid:76)n commitments(cid:11) respectively.
(cid:47)he Company incurs facility fees of 0.125(cid:4) on the undra(cid:76)n commitments. Such facility fees incurred (cid:76)ere immaterial in the
fiscal years ended (cid:37)une 30(cid:11) 2022(cid:11) 2021(cid:11) and 2020(cid:11) respectively.
At (cid:37)une 30(cid:11) 2022 and 2021(cid:11) land and buildings (cid:76)ith a carrying value of $38 million and $1(cid:24) million(cid:11) respectively(cid:11) have
been pledged as security for ban(cid:64) and other loans.
Re(cid:40)em(cid:52)(cid:56)io(cid:50) of (cid:56)erm (cid:40)e(cid:38)(cid:56)
(cid:47)he Company may redeem its long(cid:12)term debt(cid:11) in (cid:76)hole or in part(cid:11) at any time or from time to time prior to its maturity.
(cid:47)he redemption prices typically represent 100(cid:4) of the principal amount of the relevant debt plus any accrued and unpaid
interest. In addition(cid:11) for notes that are redeemed by the Company before their stated permitted redemption date(cid:11) a ma(cid:64)e(cid:12)(cid:76)hole
premium is payable.
On (cid:31)ecember 15(cid:11) 2021(cid:11) the Company redeemed (cid:48).S. private placement notes of a principal amount of $275 million at
maturity using the proceeds from the commercial paper program. (cid:47)he notes carried an interest rate of 5.(cid:24)5(cid:4).
On (cid:37)uly 15(cid:11) 2021(cid:11) the Company redeemed all $400 million outstanding amount of the 4.50(cid:4) senior notes due in
October 2021 at a price equal to the principal plus accrued interest.
(cid:30)riori(cid:56)(cid:61)(cid:6) (cid:21)(cid:57)ara(cid:50)(cid:56)ees(cid:6) a(cid:50)(cid:40) (cid:20)i(cid:50)a(cid:50)(cid:39)ia(cid:48) (cid:17)o(cid:58)e(cid:50)a(cid:50)(cid:56)s
All the notes are general unsecured senior obligations of the Company and are fully and unconditionally guaranteed on
a (cid:63)oint and several basis by certain e(cid:77)isting subsidiaries that guarantee its other indebtedness.
(cid:47)he Company(cid:6)s primary ban(cid:64) debt facilities and notes are unsecured and sub(cid:63)ect to negative pledge arrangements
limiting the amount of secured indebtedness the Company can incur to 10.0(cid:4) of total tangible assets(cid:11) sub(cid:63)ect to some
e(cid:77)ceptions and variations by facility. As of (cid:37)une 30(cid:11) 2022(cid:11) the Company is required to satisfy certain financial covenants
pursuant to its ban(cid:64) debt facilities(cid:11) (cid:76)hich are tested as of the last day of each quarterly and annual financial period. (cid:47)he
covenants require the Company to maintain a leverage ratio of not higher than 3.(cid:24) times(cid:11) (cid:76)hich is calculated as total net debt
divided by Ad(cid:63)usted EBI(cid:47)(cid:31)A. As of (cid:37)une 30(cid:11) 2022 and 2021(cid:11) the Company (cid:76)as in compliance (cid:76)ith all debt covenants.
83
Amcor Annual Report 2022
84
(cid:16)a(cid:50)(cid:47) a(cid:50)(cid:40) o(cid:56)(cid:44)er (cid:48)oa(cid:50)s
Short-(cid:44)erm Debt
83
Form 10-K
84
Short(cid:12)term debt is generally used to fund (cid:76)or(cid:64)ing capital requirements. (cid:47)he Company has classified commercial paper
as long(cid:12)term at (cid:37)une 30(cid:11) 2022 in accordance (cid:76)ith the Company(cid:89)s ability and intent to refinance such obligations on a long(cid:12)term
basis.
(cid:47)he follo(cid:76)ing table summari(cid:79)es the carrying value of short(cid:12)term debt at (cid:37)une 30(cid:11) 2022 and 2021(cid:11) respectively(cid:25)
((cid:3) in millions)
Ban(cid:64) loans
Ban(cid:64) overdrafts
(cid:44)otal short-term debt
June 30,
2022
2021
$
(cid:3)
32 $
104
13(cid:20) (cid:3)
45
53
(cid:23)(cid:22)
As of (cid:37)une 30(cid:11) 2022(cid:11) the Company paid a (cid:76)eighted(cid:12)average interest rate of 1.40(cid:4) per annum on short(cid:12)term debt(cid:11)
payable at maturity. As of (cid:37)une 30(cid:11) 2021(cid:11) the Company paid a (cid:76)eighted(cid:12)average interest rate of 6.10(cid:4) per annum(cid:11) payable at
maturity.
(cid:47)he Company has entered into syndicated and bilateral multi(cid:12)currency credit facilities (cid:76)ith financial institutions. On
April 26(cid:11) 2022(cid:11) the Company terminated the three(cid:12)(cid:11) four(cid:12)(cid:11) and five(cid:12)year syndicated facility agreements(cid:11) (cid:76)hich collectively
provided for $3.8 billion of credit facilities. On the same day(cid:11) the Company entered into three(cid:12) and five(cid:12)year syndicated facility
agreements that each provide a revolving credit facility of $1.(cid:24) billion or $3.8 billion in total. (cid:47)he facilities are unsecured and
have contractual maturities in April 2025 and April 2027(cid:11) respectively. (cid:47)he agreements include customary terms and conditions
for a syndicated facility of this nature(cid:11) and the revolving tranches have t(cid:76)o 12(cid:12)month options available to management to
e(cid:77)tend the maturity date.
Interest charged on borro(cid:76)ings under the credit facilities is based on the applicable mar(cid:64)et rate plus the applicable
margin. As of (cid:37)une 30(cid:11) 2022 and 2021(cid:11) the Company(cid:6)s credit facilities amounted to $3.8 billion.
As of (cid:37)une 30(cid:11) 2022 and 2021(cid:11) the Company has $1.4 billion and $2.0 billion of undra(cid:76)n commitments(cid:11) respectively.
(cid:47)he Company incurs facility fees of 0.125(cid:4) on the undra(cid:76)n commitments. Such facility fees incurred (cid:76)ere immaterial in the
fiscal years ended (cid:37)une 30(cid:11) 2022(cid:11) 2021(cid:11) and 2020(cid:11) respectively.
At (cid:37)une 30(cid:11) 2022 and 2021(cid:11) land and buildings (cid:76)ith a carrying value of $38 million and $1(cid:24) million(cid:11) respectively(cid:11) have
been pledged as security for ban(cid:64) and other loans.
Re(cid:40)em(cid:52)(cid:56)io(cid:50) of (cid:56)erm (cid:40)e(cid:38)(cid:56)
(cid:47)he Company may redeem its long(cid:12)term debt(cid:11) in (cid:76)hole or in part(cid:11) at any time or from time to time prior to its maturity.
(cid:47)he redemption prices typically represent 100(cid:4) of the principal amount of the relevant debt plus any accrued and unpaid
interest. In addition(cid:11) for notes that are redeemed by the Company before their stated permitted redemption date(cid:11) a ma(cid:64)e(cid:12)(cid:76)hole
premium is payable.
On (cid:31)ecember 15(cid:11) 2021(cid:11) the Company redeemed (cid:48).S. private placement notes of a principal amount of $275 million at
maturity using the proceeds from the commercial paper program. (cid:47)he notes carried an interest rate of 5.(cid:24)5(cid:4).
On (cid:37)uly 15(cid:11) 2021(cid:11) the Company redeemed all $400 million outstanding amount of the 4.50(cid:4) senior notes due in
October 2021 at a price equal to the principal plus accrued interest.
(cid:30)riori(cid:56)(cid:61)(cid:6) (cid:21)(cid:57)ara(cid:50)(cid:56)ees(cid:6) a(cid:50)(cid:40) (cid:20)i(cid:50)a(cid:50)(cid:39)ia(cid:48) (cid:17)o(cid:58)e(cid:50)a(cid:50)(cid:56)s
All the notes are general unsecured senior obligations of the Company and are fully and unconditionally guaranteed on
a (cid:63)oint and several basis by certain e(cid:77)isting subsidiaries that guarantee its other indebtedness.
(cid:47)he Company(cid:6)s primary ban(cid:64) debt facilities and notes are unsecured and sub(cid:63)ect to negative pledge arrangements
limiting the amount of secured indebtedness the Company can incur to 10.0(cid:4) of total tangible assets(cid:11) sub(cid:63)ect to some
e(cid:77)ceptions and variations by facility. As of (cid:37)une 30(cid:11) 2022(cid:11) the Company is required to satisfy certain financial covenants
pursuant to its ban(cid:64) debt facilities(cid:11) (cid:76)hich are tested as of the last day of each quarterly and annual financial period. (cid:47)he
covenants require the Company to maintain a leverage ratio of not higher than 3.(cid:24) times(cid:11) (cid:76)hich is calculated as total net debt
divided by Ad(cid:63)usted EBI(cid:47)(cid:31)A. As of (cid:37)une 30(cid:11) 2022 and 2021(cid:11) the Company (cid:76)as in compliance (cid:76)ith all debt covenants.
83
84
Amcor Annual Report 2022
Form 10-K
85
(cid:38)ote 1(cid:19) - Leases
(cid:47)he components of lease e(cid:77)penses are as follo(cid:76)s(cid:25)
((cid:3) in millions)
Operating lease e(cid:77)pense (1)
Short(cid:12)term and variable lease e(cid:77)pense (2)
Finance lease e(cid:77)pense
Amorti(cid:79)ation of right(cid:12)of(cid:12)use assets (2)
Interest on lease liabilities (3)
2022
$
Years ended June 30,
2021
2020
130 $
17
113 $
20
2
1
2
1
112
(cid:85)
2
1
Supplemental cash flo(cid:76) information related to leases (cid:76)as as follo(cid:76)s(cid:25)
((cid:3) in millions)
Cash paid for amounts included in the measurement of lease liabilities(cid:25)
Operating cash flo(cid:76)s from operating leases
Operating cash flo(cid:76)s from finance leases
Financing cash flo(cid:76)s from finance leases
Lease assets obtained in e(cid:77)change for ne(cid:76) lease obligations(cid:25)
Years ended June 30,
2022
2021
2020
$
122 $
111 $
1
5
55
34
1
2
55
1
(cid:44)otal lease e(cid:74)pense (1)
(cid:3)
1(cid:19)0 (cid:3)
13(cid:20) (cid:3)
11(cid:19)
(cid:47)he follo(cid:76)ing table presents the maturities of the Company(cid:6)s lease liabilities recorded on the consolidated balance
(1)
(2)
(3)
Included in cost of sales and selling(cid:11) general(cid:11) and administrative e(cid:77)penses.
Included in cost of sales.
Included in interest e(cid:77)pense.
(cid:47)he Company(cid:6)s leases do not contain any material residual value guarantees or material restrictive covenants. As of
(cid:37)une 30(cid:11) 2022(cid:11) the Company does not have material lease commitments that have not commenced.
Supplemental balance sheet information related to leases (cid:76)as as follo(cid:76)s(cid:25)
((cid:3) in millions)
Assets
Balance Sheet Location
2022
2021
June 30,
Operating lease right(cid:12)of(cid:12)use assets(cid:11) net
Operating lease assets
(cid:43)roperty(cid:11) plant(cid:11) and equipment(cid:11) net
Finance lease assets (1)
(cid:44)otal lease assets
Liabilities
Operating leases(cid:25)
Current operating lease liabilities
Other current liabilities
(cid:41)on(cid:12)current operating lease liabilities
Operating lease liabilities
Finance leases(cid:25)
Current finance lease liabilities
Current portion of long(cid:12)term debt
(cid:41)on(cid:12)current finance lease liabilities
Long(cid:12)term debt(cid:11) less current portion
(cid:44)otal lease liabilities
$
(cid:3)
$
(cid:3)
560 $
62
(cid:20)22 (cid:3)
101 $
4(cid:24)3
10
52
(cid:20)(cid:19)(cid:20) (cid:3)
532
30
(cid:19)(cid:20)2
(cid:24)6
462
2
30
(cid:19)(cid:23)0
(1) Finance lease assets are recorded net of accumulated amorti(cid:79)ation of $(cid:24) million and $8 million at (cid:37)une 30(cid:11) 2022 and 2021(cid:11)
respectively.
Operating leases
Finance leases
sheets as of (cid:37)une 30(cid:11) 2022(cid:25)
((cid:3) in millions)
Fiscal year 2023
Fiscal year 2024
Fiscal year 2025
Fiscal year 2026
Fiscal year 2027
(cid:47)hereafter
(cid:47)otal lease payments
Less(cid:25) imputed interest
(cid:44)otal lease liabilities
(cid:47)he (cid:76)eighted(cid:12)average remaining lease term and discount rate are as follo(cid:76)s(cid:25)
(cid:50)eighted(cid:12)average remaining lease term (in years)(cid:25)
Operating leases
Finance leases
(cid:50)eighted(cid:12)average discount rate(cid:25)
Operating Leases
Finance leases
108
1
2
63
31
12
12
11
7
2
2(cid:24)
73
(11)
(cid:20)2
8.5
17.2
3.5 (cid:4)
3.8 (cid:4)
Operating Leases
Finance Leases
$
114 $
(cid:3)
(cid:19)(cid:23)(cid:18) (cid:3)
June 30,
2022
2021
103
82
74
60
263
6(cid:24)6
(102)
(cid:24).0
10.1
3.3 (cid:4)
2.(cid:24) (cid:4)
85
Amcor Annual Report 2022
86
(cid:38)ote 1(cid:19) - Leases
(cid:47)he components of lease e(cid:77)penses are as follo(cid:76)s(cid:25)
((cid:3) in millions)
Operating lease e(cid:77)pense (1)
Short(cid:12)term and variable lease e(cid:77)pense (2)
Finance lease e(cid:77)pense
Amorti(cid:79)ation of right(cid:12)of(cid:12)use assets (2)
Interest on lease liabilities (3)
Years ended June 30,
2022
2021
2020
$
130 $
17
113 $
20
2
1
2
1
(cid:44)otal lease e(cid:74)pense (1)
(cid:3)
1(cid:19)0 (cid:3)
13(cid:20) (cid:3)
11(cid:19)
Included in cost of sales and selling(cid:11) general(cid:11) and administrative e(cid:77)penses.
(1)
(2)
(3)
Included in cost of sales.
Included in interest e(cid:77)pense.
(cid:47)he Company(cid:6)s leases do not contain any material residual value guarantees or material restrictive covenants. As of
(cid:37)une 30(cid:11) 2022(cid:11) the Company does not have material lease commitments that have not commenced.
Supplemental balance sheet information related to leases (cid:76)as as follo(cid:76)s(cid:25)
Balance Sheet Location
2022
2021
June 30,
Operating lease right(cid:12)of(cid:12)use assets(cid:11) net
Operating lease assets
(cid:43)roperty(cid:11) plant(cid:11) and equipment(cid:11) net
Current operating lease liabilities
Other current liabilities
(cid:41)on(cid:12)current operating lease liabilities
Operating lease liabilities
Current finance lease liabilities
Current portion of long(cid:12)term debt
(cid:41)on(cid:12)current finance lease liabilities
Long(cid:12)term debt(cid:11) less current portion
(1) Finance lease assets are recorded net of accumulated amorti(cid:79)ation of $(cid:24) million and $8 million at (cid:37)une 30(cid:11) 2022 and 2021(cid:11)
$
(cid:3)
$
(cid:3)
560 $
62
(cid:20)22 (cid:3)
101 $
4(cid:24)3
10
52
(cid:20)(cid:19)(cid:20) (cid:3)
((cid:3) in millions)
Assets
Finance lease assets (1)
(cid:44)otal lease assets
Liabilities
Operating leases(cid:25)
Finance leases(cid:25)
(cid:44)otal lease liabilities
respectively.
112
(cid:85)
2
1
532
30
(cid:19)(cid:20)2
(cid:24)6
462
2
30
(cid:19)(cid:23)0
85
Form 10-K
86
Supplemental cash flo(cid:76) information related to leases (cid:76)as as follo(cid:76)s(cid:25)
((cid:3) in millions)
Cash paid for amounts included in the measurement of lease liabilities(cid:25)
Operating cash flo(cid:76)s from operating leases
Operating cash flo(cid:76)s from finance leases
Financing cash flo(cid:76)s from finance leases
Lease assets obtained in e(cid:77)change for ne(cid:76) lease obligations(cid:25)
Operating leases
Finance leases
Years ended June 30,
2021
2020
2022
$
122 $
111 $
1
5
55
34
1
2
55
1
108
1
2
63
31
(cid:47)he follo(cid:76)ing table presents the maturities of the Company(cid:6)s lease liabilities recorded on the consolidated balance
sheets as of (cid:37)une 30(cid:11) 2022(cid:25)
((cid:3) in millions)
Fiscal year 2023
Fiscal year 2024
Fiscal year 2025
Fiscal year 2026
Fiscal year 2027
(cid:47)hereafter
(cid:47)otal lease payments
Less(cid:25) imputed interest
(cid:44)otal lease liabilities
Operating Leases
Finance Leases
$
114 $
103
82
74
60
263
6(cid:24)6
(cid:3)
(102)
(cid:19)(cid:23)(cid:18) (cid:3)
12
12
11
7
2
2(cid:24)
73
(11)
(cid:20)2
8.5
17.2
3.5 (cid:4)
3.8 (cid:4)
(cid:47)he (cid:76)eighted(cid:12)average remaining lease term and discount rate are as follo(cid:76)s(cid:25)
June 30,
2022
2021
(cid:50)eighted(cid:12)average remaining lease term (in years)(cid:25)
Operating leases
Finance leases
(cid:50)eighted(cid:12)average discount rate(cid:25)
Operating Leases
Finance leases
(cid:24).0
10.1
3.3 (cid:4)
2.(cid:24) (cid:4)
85
86
Amcor Annual Report 2022
(cid:38)ote 1(cid:20) - Shareholders(cid:6) E(cid:67)uity
(cid:47)he changes in the components of accumulated other comprehensive loss during the fiscal years ended (cid:37)une 30(cid:11) 2022(cid:11)
(cid:47)he changes in ordinary and treasury shares during fiscal years 2022(cid:11) 2021(cid:11) and 2020(cid:11) (cid:76)ere as follo(cid:76)s(cid:25)
Form 10-K
87
(shares and dollars in millions)
Balance as of June 30, 201(cid:23)
Share buybac(cid:64)(cid:14)cancellations
Options e(cid:77)ercised and shares vested
(cid:43)urchase of treasury shares
Balance as of June 30, 2020
Share buybac(cid:64)(cid:14)cancellations
Options e(cid:77)ercised and shares vested
(cid:43)urchase of treasury shares
Balance as of June 30, 2021
Share buybac(cid:64)(cid:14)cancellations
Options e(cid:77)ercised and shares vested
(cid:43)urchase of treasury shares
Balance as of June 30, 2022
Ordinary Shares
(cid:44)reasury Shares
(cid:38)umber of
Shares
Amount
(cid:38)umber of
Shares
Amount
1,(cid:20)2(cid:20) (cid:3)
(57)
(cid:85)
(cid:85)
1,(cid:19)(cid:20)(cid:23)
1(cid:20)
(cid:85)
(cid:85)
(cid:85)
1(cid:20)
(31)
(1)
(cid:85)
(cid:85)
1,(cid:19)3(cid:22)
(4(cid:24))
(cid:85)
(cid:85)
1,(cid:18)(cid:22)(cid:23) (cid:3)
(cid:85)
(cid:85)
1(cid:19)
(cid:85)
(cid:85)
(cid:85)
1(cid:19)
1 (cid:3)
(cid:85)
(1)
7
(cid:21)
(cid:85)
(5)
1
3
(cid:85)
(13)
12
2 (cid:3)
(1(cid:20))
(cid:85)
16
(67)
((cid:20)(cid:21))
(cid:85)
46
(8)
(2(cid:23))
(cid:85)
154
(143)
(1(cid:22))
2021(cid:11) and 2020 (cid:76)ere as follo(cid:76)s(cid:25)
((cid:3) in millions)
((cid:38)et of (cid:44)a(cid:74))
((cid:38)et of (cid:44)a(cid:74))
((cid:38)et of (cid:44)a(cid:74))
((cid:38)et of (cid:44)a(cid:74))
Balance as of June 30, 201(cid:23)
(cid:3)
((cid:20)0(cid:23)) (cid:3)
(11) (cid:3)
((cid:23)0) (cid:3)
(12) (cid:3)
Foreign
Currency
(cid:44)ranslation
(cid:38)et
Investment
(cid:32)edge
Pension
Effective
Derivatives
(cid:44)otal Accumulated
Comprehensive
Other
Loss
Other comprehensive loss before
reclassifications
Amounts reclassified from
accumulated other comprehensive
loss
(cid:41)et current period other
comprehensive loss
Balance as of June 30, 2020
Other comprehensive income before
reclassifications
Amounts reclassified from
accumulated other comprehensive
loss
(cid:41)et current period other
comprehensive income
Balance as of June 30, 2021
Other comprehensive income(cid:14)(loss)
before reclassifications
Amounts reclassified from
accumulated other comprehensive
loss
(cid:41)et current period other
comprehensive income(cid:14)(loss)
(2(cid:24)8)
(2)
(25)
(28)
11
(287)
((cid:22)(cid:23)(cid:20))
17(cid:24)
26
205
((cid:20)(cid:23)1)
(220)
1(cid:24)
(201)
((cid:22)(cid:23)2) (cid:3)
(cid:85)
(2)
(13)
(cid:24)
(16)
(10(cid:20))
(13)
((cid:19)(cid:18))
44
8
52
85
(cid:24)
(cid:24)4
(cid:85)
(cid:85)
(cid:85)
(cid:85)
(cid:85)
(cid:85)
6
(22)
(3(cid:18))
25
1
26
((cid:22))
6
(13)
(7)
(1(cid:19)) (cid:3)
Balance as of June 30, 2022
(cid:3)
(13) (cid:3)
(cid:18)0 (cid:3)
((cid:21)22)
(353)
26
(327)
(1,0(cid:18)(cid:23))
248
35
283
((cid:21)(cid:20)(cid:20))
(12(cid:24))
15
(114)
((cid:22)(cid:22)0)
87
Amcor Annual Report 2022
88
(cid:38)ote 1(cid:20) - Shareholders(cid:6) E(cid:67)uity
(cid:47)he changes in the components of accumulated other comprehensive loss during the fiscal years ended (cid:37)une 30(cid:11) 2022(cid:11)
87
Form 10-K
88
(cid:47)he changes in ordinary and treasury shares during fiscal years 2022(cid:11) 2021(cid:11) and 2020(cid:11) (cid:76)ere as follo(cid:76)s(cid:25)
(shares and dollars in millions)
Balance as of June 30, 201(cid:23)
Share buybac(cid:64)(cid:14)cancellations
Options e(cid:77)ercised and shares vested
(cid:43)urchase of treasury shares
Balance as of June 30, 2020
Share buybac(cid:64)(cid:14)cancellations
Options e(cid:77)ercised and shares vested
(cid:43)urchase of treasury shares
Balance as of June 30, 2021
Share buybac(cid:64)(cid:14)cancellations
Options e(cid:77)ercised and shares vested
(cid:43)urchase of treasury shares
Balance as of June 30, 2022
Ordinary Shares
(cid:44)reasury Shares
(cid:38)umber of
Shares
Amount
(cid:38)umber of
Shares
Amount
1,(cid:20)2(cid:20) (cid:3)
(57)
1,(cid:19)(cid:20)(cid:23)
(31)
1,(cid:19)3(cid:22)
(4(cid:24))
(cid:85)
(cid:85)
(cid:85)
(cid:85)
(cid:85)
(cid:85)
1,(cid:18)(cid:22)(cid:23) (cid:3)
(1)
1(cid:20)
(cid:85)
(cid:85)
(cid:85)
1(cid:20)
(cid:85)
(cid:85)
1(cid:19)
(cid:85)
(cid:85)
(cid:85)
1(cid:19)
1 (cid:3)
(cid:85)
(1)
(5)
7
(cid:21)
(cid:85)
1
3
(cid:85)
12
(13)
2 (cid:3)
(1(cid:20))
(cid:85)
16
(67)
((cid:20)(cid:21))
(cid:85)
46
(8)
(2(cid:23))
(cid:85)
154
(143)
(1(cid:22))
2021(cid:11) and 2020 (cid:76)ere as follo(cid:76)s(cid:25)
((cid:3) in millions)
Balance as of June 30, 201(cid:23)
Other comprehensive loss before
reclassifications
Amounts reclassified from
accumulated other comprehensive
loss
(cid:41)et current period other
comprehensive loss
Balance as of June 30, 2020
Other comprehensive income before
reclassifications
Amounts reclassified from
accumulated other comprehensive
loss
(cid:41)et current period other
comprehensive income
Balance as of June 30, 2021
Other comprehensive income(cid:14)(loss)
before reclassifications
Amounts reclassified from
accumulated other comprehensive
loss
(cid:41)et current period other
comprehensive income(cid:14)(loss)
Balance as of June 30, 2022
Foreign
Currency
(cid:44)ranslation
((cid:38)et of (cid:44)a(cid:74))
(cid:3)
(cid:38)et
Investment
(cid:32)edge
((cid:38)et of (cid:44)a(cid:74))
Pension
((cid:38)et of (cid:44)a(cid:74))
Effective
Derivatives
((cid:38)et of (cid:44)a(cid:74))
(cid:44)otal Accumulated
Other
Comprehensive
Loss
((cid:20)0(cid:23)) (cid:3)
(11) (cid:3)
((cid:23)0) (cid:3)
(12) (cid:3)
(2(cid:24)8)
(2)
(25)
(28)
11
(287)
((cid:22)(cid:23)(cid:20))
17(cid:24)
26
205
((cid:20)(cid:23)1)
(220)
1(cid:24)
(201)
((cid:22)(cid:23)2) (cid:3)
(cid:3)
(cid:85)
(2)
(13)
(cid:85)
(cid:85)
(cid:24)
(16)
(10(cid:20))
44
8
(cid:85)
(13)
52
((cid:19)(cid:18))
(cid:85)
(cid:85)
85
(cid:24)
(cid:85)
(13) (cid:3)
(cid:24)4
(cid:18)0 (cid:3)
6
(22)
(3(cid:18))
25
1
26
((cid:22))
6
(13)
(7)
(1(cid:19)) (cid:3)
((cid:21)22)
(353)
26
(327)
(1,0(cid:18)(cid:23))
248
35
283
((cid:21)(cid:20)(cid:20))
(12(cid:24))
15
(114)
((cid:22)(cid:22)0)
87
88
Amcor Annual Report 2022
(cid:47)he follo(cid:76)ing tables provide details of amounts reclassified from accumulated other comprehensive loss(cid:25)
(cid:38)ote 1(cid:21) - Income (cid:44)a(cid:74)es
Form 10-K
89
((cid:3) in millions)
Amorti(cid:79)ation of pension(cid:25)
Amorti(cid:79)ation of prior service credit
Amorti(cid:79)ation of actuarial loss
Acquisition(cid:14)disposal loss
Effect of pension settlement(cid:14)curtailment
(cid:47)otal before ta(cid:77) effect
(cid:47)a(cid:77) effect on amounts reclassified into earnings
(cid:44)otal net of ta(cid:74)
((cid:34)ains)(cid:14)losses on cash flo(cid:76) hedges(cid:25)
Commodity contracts
For(cid:76)ard e(cid:77)change contracts
(cid:47)reasury loc(cid:64)s
(cid:47)otal before ta(cid:77) effect
(cid:47)a(cid:77) effect on amounts reclassified into earnings
(cid:44)otal net of ta(cid:74)
Losses on foreign currency translation(cid:25)
Foreign currency translation ad(cid:63)ustment (1)
(cid:47)otal before ta(cid:77) effect
(cid:47)a(cid:77) effect on amounts reclassified into earnings
(cid:44)otal net of ta(cid:74)
For the years ended June 30,
2021
2020
2022
$
(3) $
(2) $
5
1
8
11
(2)
(cid:23) (cid:3)
8
(cid:85)
2
8
(cid:85)
(cid:22) (cid:3)
(20) $
(1) $
(cid:85)
3
(17)
4
(cid:85)
2
1
(cid:85)
(13) (cid:3)
1 (cid:3)
1(cid:24) $
26 $
1(cid:24)
(cid:85)
26
(cid:85)
1(cid:23) (cid:3)
2(cid:20) (cid:3)
(cid:3)
$
(cid:3)
$
(cid:3)
(2)
6
(cid:85)
6
10
(1)
(cid:23)
6
1
(cid:85)
7
(1)
(cid:20)
11
11
(cid:85)
11
companies (cid:76)ere as follo(cid:76)s(cid:25)
((cid:3) in millions)
(cid:31)omestic ((cid:48)(cid:38))
Foreign
((cid:3) in millions)
Current ta(cid:74)
(cid:31)omestic ((cid:48)(cid:38))
Foreign
(cid:44)otal current ta(cid:74)
Deferred ta(cid:74)
(cid:31)omestic ((cid:48)(cid:38))
Foreign
(cid:44)otal deferred ta(cid:74)
Income ta(cid:74) e(cid:74)pense
(1) (cid:31)uring the fiscal year ended (cid:37)une 30(cid:11) 2022(cid:11) the Company effectively disposed of a non(cid:12)core business and transferred $1(cid:24) million of
accumulated foreign currency translation from accumulated other comprehensive loss to earnings. (cid:31)uring the fiscal year ended (cid:37)une
30(cid:11) 2021(cid:11) the Company recorded a gain on disposal of A(cid:40)(cid:49)I(cid:34) and other non(cid:12)core businesses. (cid:48)pon completion of the sales(cid:11)
$26 million of accumulated foreign currency translation (cid:76)as transferred from accumulated other comprehensive loss to earnings.
(cid:45)efer to (cid:41)ote 8(cid:11) "Equity (cid:40)ethod and Other Investments" for further information on the disposal of A(cid:40)(cid:49)I(cid:34) and (cid:41)ote 5(cid:11)
"(cid:31)ivestitures" for more information about the Company(cid:6)s other disposals. (cid:47)he fiscal year ended (cid:37)une 30(cid:11) 2020 includes the loss on
sale of the EC (cid:45)emedy of $(cid:24) million(cid:11) (cid:76)hich is the result of the reclassification of accumulated foreign currency translation amounts
from accumulated other comprehensive loss to earnings. (cid:45)efer to (cid:41)ote 6(cid:11) "(cid:35)eld for Sale and (cid:31)iscontinued Operations" for more
information.
Forward contracts to purchase own shares
(cid:47)he Company(cid:6)s employee share plans require the delivery of shares to employees in the future (cid:76)hen rights vest or
vested options are e(cid:77)ercised. (cid:47)he Company currently acquires shares on the open mar(cid:64)et to deliver shares to employees to
satisfy vesting or e(cid:77)ercising commitments. (cid:47)his e(cid:77)poses the Company to mar(cid:64)et price ris(cid:64).
(cid:47)o manage the mar(cid:64)et price ris(cid:64)(cid:11) the Company has entered into for(cid:76)ard contracts for the purchase of its ordinary
shares. As of (cid:37)une 30(cid:11) 2022(cid:11) the Company has entered into for(cid:76)ard contracts that mature bet(cid:76)een (cid:41)ovember 2022 and (cid:37)une
2023 to purchase 14 million shares at a (cid:76)eighted average price of $12.67. As of (cid:37)une 30(cid:11) 2021(cid:11) the Company had outstanding
for(cid:76)ard contracts for 8 million shares at a (cid:76)eighted average price of $11.65 that matured in (cid:37)une 2022.
(cid:47)he for(cid:76)ard contracts to purchase the Company(cid:6)s o(cid:76)n shares are classified as a current liability. Equity is reduced by
an amount equal to the fair value of the shares at inception. (cid:47)he carrying value of the for(cid:76)ard contracts at each reporting period
(cid:76)as determined based on the present value of the cost required to settle the contracts.
8(cid:24)
Amcor Annual Report 2022
(cid:24)0
Amcor plc is a ta(cid:77) resident of the (cid:48)nited (cid:38)ingdom of (cid:34)reat Britain and (cid:41)orthern Ireland ("(cid:48)(cid:38)").
(cid:47)he components of income from continuing operations before income ta(cid:77)es and equity in income(cid:14)(loss) of affiliated
(cid:44)otal income from continuing operations before income ta(cid:74)es and e(cid:67)uity in
income(cid:13)(loss) of affiliated companies
(cid:3)
1,11(cid:19) (cid:3)
1,1(cid:23)3 (cid:3)
(cid:22)2(cid:19)
Income ta(cid:77) e(cid:77)pense consisted of the follo(cid:76)ing(cid:25)
Years ended June 30,
2022
2021
2020
$
(58) $
(25) $
1(cid:11)173
1(cid:11)218
(36)
861
Years ended June 30,
2022
2021
2020
$
2 $
11 $
331
333
(10)
(23)
(33)
246
257
(1)
5
(cid:18)
(cid:3)
300 (cid:3)
2(cid:20)1 (cid:3)
Years ended June 30,
2022
2021
2020
$
212 $
227 $
43
(2)
(1)
4
62
18
2
40
32
(1)
(18)
300 (cid:3)
(57)
2(cid:20)1 (cid:3)
(cid:3)
1
300
301
1
(115)
(11(cid:18))
1(cid:22)(cid:21)
153
70
13
(30)
(17)
(cid:85)
(2)
1(cid:22)(cid:21)
(cid:47)he deferred ta(cid:77) benefit in fiscal year 2020 related to undistributed foreign earnings and included the ta(cid:77) impact of the
EC (cid:45)emedy sale of $83 million.
(cid:47)he follo(cid:76)ing is a reconciliation of income ta(cid:77) computed at the (cid:48)(cid:38) statutory ta(cid:77) rate of 1(cid:24).0(cid:4)(cid:11) 1(cid:24).0(cid:4)(cid:11) and 18.5(cid:4) for
fiscal years 2022(cid:11) 2021(cid:11) and 2020(cid:11) respectively(cid:11) to income ta(cid:77) e(cid:77)pense.
((cid:3) in millions)
Income ta(cid:77) e(cid:77)pense at statutory rate
Foreign ta(cid:77) rate differential
(cid:41)on(cid:12)deductible e(cid:77)penses(cid:11) non(cid:12)ta(cid:77)able items(cid:11) net
(cid:47)a(cid:77) la(cid:76) changes
Change in valuation allo(cid:76)ance
(cid:48)ncertain ta(cid:77) positions(cid:11) net
Other (1)
Income ta(cid:74) e(cid:74)pense
(1)
In fiscal year 2022(cid:11) Other is comprised of ad(cid:63)ustments to prior year(cid:11) movements in deferred ta(cid:77) positions of $13 million(cid:11) and other
individually immaterial items. In fiscal year 2021(cid:11) Other is comprised of ad(cid:63)ustments to prior fiscal year(cid:11) including one related to
the crystalli(cid:79)ation of benefits from business restructuring of $45 million and other individually immaterial items.
Amcor operates in over forty different (cid:63)urisdictions (cid:76)ith a (cid:76)ide range of statutory ta(cid:77) rates. (cid:47)he ta(cid:77) e(cid:77)pense from
operating in non(cid:12)(cid:48)(cid:38) (cid:63)urisdictions in e(cid:77)cess of the (cid:48)(cid:38) statutory ta(cid:77) rate is included in the line "Foreign ta(cid:77) rate differential" in
the above ta(cid:77) rate reconciliation table. For fiscal year 2022(cid:11) the Company(cid:6)s effective ta(cid:77) rate (cid:76)as 26.(cid:24)(cid:4) as compared to the
effective ta(cid:77) rates of 21.(cid:24)(cid:4) and 22.6(cid:4) for fiscal years 2021 and 2020(cid:11) respectively(cid:11) (cid:76)ith the increase in fiscal year 2022
predominantly attributable to an increase in ta(cid:77) provisions for uncertain ta(cid:77) positions. For fiscal year 2021(cid:11) the Company(cid:6)s
effective ta(cid:77) rate (cid:76)as higher than its (cid:48)(cid:38) statutory ta(cid:77) rate primarily due to preta(cid:77) income being earned in (cid:63)urisdictions outside
89
Form 10-K
(cid:28)0
(cid:47)he follo(cid:76)ing tables provide details of amounts reclassified from accumulated other comprehensive loss(cid:25)
(cid:38)ote 1(cid:21) - Income (cid:44)a(cid:74)es
For the years ended June 30,
2022
2021
2020
Amcor plc is a ta(cid:77) resident of the (cid:48)nited (cid:38)ingdom of (cid:34)reat Britain and (cid:41)orthern Ireland ("(cid:48)(cid:38)").
(cid:47)he components of income from continuing operations before income ta(cid:77)es and equity in income(cid:14)(loss) of affiliated
$
(3) $
(2) $
companies (cid:76)ere as follo(cid:76)s(cid:25)
((cid:3) in millions)
(cid:31)omestic ((cid:48)(cid:38))
Foreign
(cid:44)otal income from continuing operations before income ta(cid:74)es and e(cid:67)uity in
income(cid:13)(loss) of affiliated companies
Income ta(cid:77) e(cid:77)pense consisted of the follo(cid:76)ing(cid:25)
((cid:3) in millions)
Current ta(cid:74)
(cid:31)omestic ((cid:48)(cid:38))
Foreign
(cid:44)otal current ta(cid:74)
Deferred ta(cid:74)
(cid:31)omestic ((cid:48)(cid:38))
Foreign
(cid:44)otal deferred ta(cid:74)
Income ta(cid:74) e(cid:74)pense
Years ended June 30,
2021
2020
2022
$
(58) $
(25) $
1(cid:11)173
1(cid:11)218
(36)
861
(cid:3)
1,11(cid:19) (cid:3)
1,1(cid:23)3 (cid:3)
(cid:22)2(cid:19)
Years ended June 30,
2021
2020
2022
$
2 $
11 $
331
333
(10)
(23)
(33)
246
257
(1)
5
(cid:18)
(cid:3)
300 (cid:3)
2(cid:20)1 (cid:3)
1
300
301
1
(115)
(11(cid:18))
1(cid:22)(cid:21)
1(cid:23) (cid:3)
2(cid:20) (cid:3)
(cid:47)he deferred ta(cid:77) benefit in fiscal year 2020 related to undistributed foreign earnings and included the ta(cid:77) impact of the
EC (cid:45)emedy sale of $83 million.
(cid:47)he follo(cid:76)ing is a reconciliation of income ta(cid:77) computed at the (cid:48)(cid:38) statutory ta(cid:77) rate of 1(cid:24).0(cid:4)(cid:11) 1(cid:24).0(cid:4)(cid:11) and 18.5(cid:4) for
fiscal years 2022(cid:11) 2021(cid:11) and 2020(cid:11) respectively(cid:11) to income ta(cid:77) e(cid:77)pense.
((cid:3) in millions)
Income ta(cid:77) e(cid:77)pense at statutory rate
Foreign ta(cid:77) rate differential
(cid:41)on(cid:12)deductible e(cid:77)penses(cid:11) non(cid:12)ta(cid:77)able items(cid:11) net
(cid:47)a(cid:77) la(cid:76) changes
Change in valuation allo(cid:76)ance
(cid:48)ncertain ta(cid:77) positions(cid:11) net
Other (1)
Income ta(cid:74) e(cid:74)pense
Years ended June 30,
2021
2020
2022
$
212 $
227 $
43
(2)
(1)
4
62
18
2
(1)
40
32
(18)
300 (cid:3)
(57)
2(cid:20)1 (cid:3)
(cid:3)
153
70
13
(30)
(17)
(cid:85)
(2)
1(cid:22)(cid:21)
(1)
In fiscal year 2022(cid:11) Other is comprised of ad(cid:63)ustments to prior year(cid:11) movements in deferred ta(cid:77) positions of $13 million(cid:11) and other
individually immaterial items. In fiscal year 2021(cid:11) Other is comprised of ad(cid:63)ustments to prior fiscal year(cid:11) including one related to
the crystalli(cid:79)ation of benefits from business restructuring of $45 million and other individually immaterial items.
an amount equal to the fair value of the shares at inception. (cid:47)he carrying value of the for(cid:76)ard contracts at each reporting period
Amcor operates in over forty different (cid:63)urisdictions (cid:76)ith a (cid:76)ide range of statutory ta(cid:77) rates. (cid:47)he ta(cid:77) e(cid:77)pense from
operating in non(cid:12)(cid:48)(cid:38) (cid:63)urisdictions in e(cid:77)cess of the (cid:48)(cid:38) statutory ta(cid:77) rate is included in the line "Foreign ta(cid:77) rate differential" in
the above ta(cid:77) rate reconciliation table. For fiscal year 2022(cid:11) the Company(cid:6)s effective ta(cid:77) rate (cid:76)as 26.(cid:24)(cid:4) as compared to the
effective ta(cid:77) rates of 21.(cid:24)(cid:4) and 22.6(cid:4) for fiscal years 2021 and 2020(cid:11) respectively(cid:11) (cid:76)ith the increase in fiscal year 2022
predominantly attributable to an increase in ta(cid:77) provisions for uncertain ta(cid:77) positions. For fiscal year 2021(cid:11) the Company(cid:6)s
effective ta(cid:77) rate (cid:76)as higher than its (cid:48)(cid:38) statutory ta(cid:77) rate primarily due to preta(cid:77) income being earned in (cid:63)urisdictions outside
8(cid:24)
(cid:24)0
Amcor Annual Report 2022
((cid:3) in millions)
Amorti(cid:79)ation of pension(cid:25)
Amorti(cid:79)ation of prior service credit
Amorti(cid:79)ation of actuarial loss
Acquisition(cid:14)disposal loss
Effect of pension settlement(cid:14)curtailment
(cid:47)otal before ta(cid:77) effect
(cid:47)a(cid:77) effect on amounts reclassified into earnings
(cid:44)otal net of ta(cid:74)
((cid:34)ains)(cid:14)losses on cash flo(cid:76) hedges(cid:25)
Commodity contracts
For(cid:76)ard e(cid:77)change contracts
(cid:47)reasury loc(cid:64)s
(cid:47)otal before ta(cid:77) effect
(cid:47)a(cid:77) effect on amounts reclassified into earnings
(cid:44)otal net of ta(cid:74)
Losses on foreign currency translation(cid:25)
Foreign currency translation ad(cid:63)ustment (1)
(cid:47)otal before ta(cid:77) effect
(cid:47)a(cid:77) effect on amounts reclassified into earnings
(cid:44)otal net of ta(cid:74)
5
1
8
11
(2)
(cid:23) (cid:3)
(cid:85)
3
(17)
4
1(cid:24)
(cid:85)
(20) $
(1) $
(13) (cid:3)
1 (cid:3)
1(cid:24) $
26 $
(cid:22) (cid:3)
8
(cid:85)
2
8
(cid:85)
(cid:85)
2
1
(cid:85)
26
(cid:85)
(cid:3)
$
(cid:3)
$
(cid:3)
(2)
6
(cid:85)
6
10
(1)
(cid:23)
6
1
(cid:85)
7
(1)
(cid:20)
11
11
(cid:85)
11
(1) (cid:31)uring the fiscal year ended (cid:37)une 30(cid:11) 2022(cid:11) the Company effectively disposed of a non(cid:12)core business and transferred $1(cid:24) million of
accumulated foreign currency translation from accumulated other comprehensive loss to earnings. (cid:31)uring the fiscal year ended (cid:37)une
30(cid:11) 2021(cid:11) the Company recorded a gain on disposal of A(cid:40)(cid:49)I(cid:34) and other non(cid:12)core businesses. (cid:48)pon completion of the sales(cid:11)
$26 million of accumulated foreign currency translation (cid:76)as transferred from accumulated other comprehensive loss to earnings.
(cid:45)efer to (cid:41)ote 8(cid:11) "Equity (cid:40)ethod and Other Investments" for further information on the disposal of A(cid:40)(cid:49)I(cid:34) and (cid:41)ote 5(cid:11)
"(cid:31)ivestitures" for more information about the Company(cid:6)s other disposals. (cid:47)he fiscal year ended (cid:37)une 30(cid:11) 2020 includes the loss on
sale of the EC (cid:45)emedy of $(cid:24) million(cid:11) (cid:76)hich is the result of the reclassification of accumulated foreign currency translation amounts
from accumulated other comprehensive loss to earnings. (cid:45)efer to (cid:41)ote 6(cid:11) "(cid:35)eld for Sale and (cid:31)iscontinued Operations" for more
information.
Forward contracts to purchase own shares
(cid:47)he Company(cid:6)s employee share plans require the delivery of shares to employees in the future (cid:76)hen rights vest or
vested options are e(cid:77)ercised. (cid:47)he Company currently acquires shares on the open mar(cid:64)et to deliver shares to employees to
satisfy vesting or e(cid:77)ercising commitments. (cid:47)his e(cid:77)poses the Company to mar(cid:64)et price ris(cid:64).
(cid:47)o manage the mar(cid:64)et price ris(cid:64)(cid:11) the Company has entered into for(cid:76)ard contracts for the purchase of its ordinary
shares. As of (cid:37)une 30(cid:11) 2022(cid:11) the Company has entered into for(cid:76)ard contracts that mature bet(cid:76)een (cid:41)ovember 2022 and (cid:37)une
2023 to purchase 14 million shares at a (cid:76)eighted average price of $12.67. As of (cid:37)une 30(cid:11) 2021(cid:11) the Company had outstanding
for(cid:76)ard contracts for 8 million shares at a (cid:76)eighted average price of $11.65 that matured in (cid:37)une 2022.
(cid:47)he for(cid:76)ard contracts to purchase the Company(cid:6)s o(cid:76)n shares are classified as a current liability. Equity is reduced by
(cid:76)as determined based on the present value of the cost required to settle the contracts.
Form 10-K
91
of the (cid:48)(cid:38) (cid:76)here the applicable ta(cid:77) rates are higher than the (cid:48)(cid:38) statutory ta(cid:77) rate. (cid:47)he fiscal year 2020 foreign ta(cid:77) rate
differential reflects a benefit related to S(cid:76)iss ta(cid:77) la(cid:76) changes(cid:11) (cid:76)hich (cid:76)as mostly offset by current period ta(cid:77) charges related to
true(cid:12)up ad(cid:63)ustments. (cid:45)efer to the section "S(cid:76)iss (cid:47)a(cid:77) (cid:45)eform" in this footnote for a discussion of the impacts of the S(cid:76)iss ta(cid:77)
la(cid:76) changes (cid:76)hich the Company recogni(cid:79)ed in the last three fiscal years.
Significant components of deferred ta(cid:77) assets and liabilities are as follo(cid:76)s(cid:25)
((cid:3) in millions)
Deferred ta(cid:74) assets
Inventories
Accrued employee benefits
(cid:43)rovisions
(cid:41)et operating loss carryfor(cid:76)ards
(cid:47)a(cid:77) credit carryfor(cid:76)ards
Accruals and other
(cid:44)otal deferred ta(cid:74) assets
(cid:49)aluation allo(cid:76)ance
(cid:38)et deferred ta(cid:74) assets
Deferred ta(cid:74) liabilities
(cid:43)roperty(cid:11) plant(cid:11) and equipment
Other intangible assets(cid:11) including gross impacts from S(cid:76)iss ta(cid:77) reform
(cid:47)rade receivables
(cid:31)erivatives
(cid:48)ndistributed foreign earnings
(cid:44)otal deferred ta(cid:74) liabilities
(cid:38)et deferred ta(cid:74) liability
Balance sheet location(cid:25)
(cid:31)eferred ta(cid:77) assets
(cid:31)eferred ta(cid:77) liabilities
(cid:38)et deferred ta(cid:74) liability
June 30,
2022
2021
$
15 $
62
18
325
3(cid:24)
48
(cid:19)0(cid:21)
(407)
100
(31(cid:24))
(304)
(cid:85)
(4)
(20)
((cid:20)(cid:18)(cid:21))
((cid:19)(cid:18)(cid:21))
130
(677)
((cid:19)(cid:18)(cid:21)) (cid:3)
(cid:3)
22
101
10
2(cid:24)3
40
63
(cid:19)2(cid:23)
(403)
12(cid:20)
(325)
(326)
(7)
(cid:85)
(25)
((cid:20)(cid:22)3)
((cid:19)(cid:19)(cid:21))
13(cid:24)
(6(cid:24)6)
((cid:19)(cid:19)(cid:21))
(cid:47)he Company maintains a valuation allo(cid:76)ance on net operating losses and other deferred ta(cid:77) assets in (cid:63)urisdictions for
(cid:76)hich it does not believe it is more li(cid:64)ely than not to reali(cid:79)e those deferred ta(cid:77) assets based upon all available positive and
negative evidence(cid:11) including historical operating performance(cid:11) carry(cid:12)bac(cid:64) periods(cid:11) reversal of ta(cid:77)able temporary differences(cid:11)
ta(cid:77) planning strategies(cid:11) and earnings e(cid:77)pectations. (cid:47)he Company(cid:6)s valuation allo(cid:76)ance increased by $4 million(cid:11) by
$40 million(cid:11) and by $73 million for fiscal year 2022(cid:11) 2021(cid:11) and 2020(cid:11) respectively.
As of (cid:37)une 30(cid:11) 2022 and 2021(cid:11) the Company had total net operating loss carry for(cid:76)ards(cid:11) including capital losses(cid:11) in the
amount of $1(cid:11)178 million and $1(cid:11)085 million(cid:11) respectively(cid:11) and ta(cid:77) credits in the amount of $3(cid:24) million and $40 million(cid:11)
respectively. (cid:47)he vast ma(cid:63)ority of the losses and ta(cid:77) credits do not e(cid:77)pire.
(cid:47)he Company considers the follo(cid:76)ing factors(cid:11) among others(cid:11) in evaluating its plans for indefinite reinvestment of its
subsidiaries(cid:6) earnings(cid:25) (i) the forecasts(cid:11) budgets(cid:11) and financial requirements of the Company and its subsidiaries(cid:11) both for the
long(cid:12)term and for the short(cid:12)term(cid:26) and (ii) the ta(cid:77) consequences of any decision to repatriate or reinvest earnings of any
subsidiary. As of (cid:37)une 30(cid:11) 2022(cid:11) the Company has not provided deferred ta(cid:77)es on appro(cid:77)imately $1(cid:11)0(cid:24)3 million of earnings in
certain foreign subsidiaries because such earnings are indefinitely reinvested in its international operations. (cid:48)pon distribution of
such earnings in the form of dividends or other(cid:76)ise(cid:11) the Company may be sub(cid:63)ect to incremental foreign ta(cid:77). It is not
practicable to estimate the amount of foreign ta(cid:77) that might be payable. As of (cid:37)une 30(cid:11) 2022(cid:11) a cumulative deferred ta(cid:77) liability
of $20 million has been recorded attributable to undistributed earnings that the Company has deemed are no longer indefinitely
reinvested. (cid:47)he remaining undistributed earnings of the Company(cid:6)s subsidiaries are not deemed to be indefinitely reinvested
and can be repatriated at no ta(cid:77) cost. Accordingly(cid:11) there is no provision for income or (cid:76)ithholding ta(cid:77)es on these earnings.
(cid:47)he Company accounts for its uncertain ta(cid:77) positions in accordance (cid:76)ith ASC 740(cid:11) "Income (cid:47)a(cid:77)es." At (cid:37)une 30(cid:11) 2022
and 2021(cid:11) unrecogni(cid:79)ed ta(cid:77) benefits totaled $1(cid:24)5 million and $133 million(cid:11) respectively(cid:11) all of (cid:76)hich (cid:76)ould favorably impact
the effective ta(cid:77) rate if recogni(cid:79)ed.
(cid:47)he Company recogni(cid:79)es interest and penalties accrued related to unrecogni(cid:79)ed ta(cid:77) benefits in income ta(cid:77) e(cid:77)pense.
(cid:31)uring the fiscal years ended (cid:37)une 30(cid:11) 2022(cid:11) 2021(cid:11) and 2020(cid:11) the Company(cid:6)s accrual for interest and penalties for these
uncertain ta(cid:77) positions (cid:76)as $12 million(cid:11) $12 million(cid:11) and $7 million(cid:11) respectively. (cid:47)he Company does not currently anticipate
that the total amount of unrecogni(cid:79)ed ta(cid:77) benefits (cid:76)ill result in material changes to its financial position (cid:76)ithin the ne(cid:77)t 12
A reconciliation of the beginning and ending amount of unrecogni(cid:79)ed ta(cid:77) benefits for the fiscal years presented is as
months.
follo(cid:76)s(cid:25)
((cid:3) in millions)
Balance at the beginning of the year
Additions based on ta(cid:77) positions related to the current year
Additions for ta(cid:77) positions of prior years
(cid:45)eductions for ta(cid:77) positions from prior years
(cid:45)eductions for settlements
(cid:45)eductions due to lapse of statute of limitations
Balance at the end of the year
2022
2020
June 30,
2021
(cid:3)
133 (cid:3)
101 (cid:3)
50
1(cid:24)
(6)
(cid:85)
(1)
3(cid:24)
7
(12)
(cid:85)
(2)
(cid:3)
1(cid:23)(cid:19) (cid:3)
133 (cid:3)
102
1(cid:24)
2
(13)
(7)
(2)
101
(cid:47)he Company conducts business in a number of ta(cid:77) (cid:63)urisdictions and(cid:11) as such(cid:11) is required to file income ta(cid:77) returns in
multiple (cid:63)urisdictions globally. (cid:47)he fiscal years 2016 through 2021 remain open for e(cid:77)amination by the (cid:48)nited States Internal
(cid:45)evenue Service ("I(cid:45)S")(cid:11) the fiscal year 2020 remains open for e(cid:77)amination by (cid:35)er (cid:40)a(cid:63)esty(cid:89)s (cid:45)evenue (cid:5) Customs ("(cid:35)(cid:40)(cid:45)C")(cid:11)
and the fiscal years 2011 through 2021 are currently sub(cid:63)ect to audit or remain open for e(cid:77)amination in various ta(cid:77) (cid:63)urisdictions.
(cid:47)he Company believes that its income ta(cid:77) reserves are adequately maintained ta(cid:64)ing into consideration both the
technical merits of its ta(cid:77) return positions and ongoing developments in its income ta(cid:77) audits. (cid:35)o(cid:76)ever(cid:11) the final determination
of the Company(cid:6)s ta(cid:77) return positions(cid:11) if audited(cid:11) is uncertain and therefore there is a possibility that final resolution of these
matters could have a material impact on the Company(cid:6)s results of operations or cash flo(cid:76)s.
Swiss Tax Reform
(cid:31)uring the fiscal year ended (cid:37)une 30(cid:11) 2020(cid:11) S(cid:76)iss ta(cid:77) la(cid:76)s (cid:76)ere changed in order to remove certain ta(cid:77) regimes and
replace these (cid:76)ith ne(cid:76) measures that are hereafter referred to as "S(cid:76)iss (cid:47)a(cid:77) (cid:45)eform." In the fourth quarter of fiscal year 2020(cid:11)
the Company obtained confirmation from local authorities as to the methodology to calculate the future benefits and recorded
the impact. (cid:47)he Company recorded a benefit of $22 million at (cid:37)une 30(cid:11) 2020 related to a reduction in deferred ta(cid:77) e(cid:77)pense from
an allo(cid:76)ed step(cid:12)up of intangible assets for ta(cid:77) purposes(cid:11) an additional benefit of $2 million during fiscal year 2021(cid:11) and a
decrease of $2 million during fiscal year 2022.
(cid:24)1
Amcor Annual Report 2022
(cid:24)2
91
Form 10-K
(cid:28)2
of the (cid:48)(cid:38) (cid:76)here the applicable ta(cid:77) rates are higher than the (cid:48)(cid:38) statutory ta(cid:77) rate. (cid:47)he fiscal year 2020 foreign ta(cid:77) rate
differential reflects a benefit related to S(cid:76)iss ta(cid:77) la(cid:76) changes(cid:11) (cid:76)hich (cid:76)as mostly offset by current period ta(cid:77) charges related to
true(cid:12)up ad(cid:63)ustments. (cid:45)efer to the section "S(cid:76)iss (cid:47)a(cid:77) (cid:45)eform" in this footnote for a discussion of the impacts of the S(cid:76)iss ta(cid:77)
(cid:47)he Company accounts for its uncertain ta(cid:77) positions in accordance (cid:76)ith ASC 740(cid:11) "Income (cid:47)a(cid:77)es." At (cid:37)une 30(cid:11) 2022
and 2021(cid:11) unrecogni(cid:79)ed ta(cid:77) benefits totaled $1(cid:24)5 million and $133 million(cid:11) respectively(cid:11) all of (cid:76)hich (cid:76)ould favorably impact
the effective ta(cid:77) rate if recogni(cid:79)ed.
la(cid:76) changes (cid:76)hich the Company recogni(cid:79)ed in the last three fiscal years.
Significant components of deferred ta(cid:77) assets and liabilities are as follo(cid:76)s(cid:25)
June 30,
2022
2021
(cid:47)he Company recogni(cid:79)es interest and penalties accrued related to unrecogni(cid:79)ed ta(cid:77) benefits in income ta(cid:77) e(cid:77)pense.
(cid:31)uring the fiscal years ended (cid:37)une 30(cid:11) 2022(cid:11) 2021(cid:11) and 2020(cid:11) the Company(cid:6)s accrual for interest and penalties for these
uncertain ta(cid:77) positions (cid:76)as $12 million(cid:11) $12 million(cid:11) and $7 million(cid:11) respectively. (cid:47)he Company does not currently anticipate
that the total amount of unrecogni(cid:79)ed ta(cid:77) benefits (cid:76)ill result in material changes to its financial position (cid:76)ithin the ne(cid:77)t 12
months.
$
15 $
A reconciliation of the beginning and ending amount of unrecogni(cid:79)ed ta(cid:77) benefits for the fiscal years presented is as
follo(cid:76)s(cid:25)
((cid:3) in millions)
2022
June 30,
2021
2020
Balance at the beginning of the year
(cid:3)
133 (cid:3)
101 (cid:3)
Additions based on ta(cid:77) positions related to the current year
Additions for ta(cid:77) positions of prior years
(cid:45)eductions for ta(cid:77) positions from prior years
(cid:45)eductions for settlements
(cid:45)eductions due to lapse of statute of limitations
Balance at the end of the year
50
1(cid:24)
(6)
(cid:85)
(1)
3(cid:24)
7
(12)
(cid:85)
(2)
(cid:3)
1(cid:23)(cid:19) (cid:3)
133 (cid:3)
102
1(cid:24)
2
(13)
(7)
(2)
101
(cid:47)he Company conducts business in a number of ta(cid:77) (cid:63)urisdictions and(cid:11) as such(cid:11) is required to file income ta(cid:77) returns in
multiple (cid:63)urisdictions globally. (cid:47)he fiscal years 2016 through 2021 remain open for e(cid:77)amination by the (cid:48)nited States Internal
(cid:45)evenue Service ("I(cid:45)S")(cid:11) the fiscal year 2020 remains open for e(cid:77)amination by (cid:35)er (cid:40)a(cid:63)esty(cid:89)s (cid:45)evenue (cid:5) Customs ("(cid:35)(cid:40)(cid:45)C")(cid:11)
and the fiscal years 2011 through 2021 are currently sub(cid:63)ect to audit or remain open for e(cid:77)amination in various ta(cid:77) (cid:63)urisdictions.
(cid:47)he Company believes that its income ta(cid:77) reserves are adequately maintained ta(cid:64)ing into consideration both the
technical merits of its ta(cid:77) return positions and ongoing developments in its income ta(cid:77) audits. (cid:35)o(cid:76)ever(cid:11) the final determination
of the Company(cid:6)s ta(cid:77) return positions(cid:11) if audited(cid:11) is uncertain and therefore there is a possibility that final resolution of these
matters could have a material impact on the Company(cid:6)s results of operations or cash flo(cid:76)s.
Swiss Tax Reform
(cid:31)uring the fiscal year ended (cid:37)une 30(cid:11) 2020(cid:11) S(cid:76)iss ta(cid:77) la(cid:76)s (cid:76)ere changed in order to remove certain ta(cid:77) regimes and
replace these (cid:76)ith ne(cid:76) measures that are hereafter referred to as "S(cid:76)iss (cid:47)a(cid:77) (cid:45)eform." In the fourth quarter of fiscal year 2020(cid:11)
the Company obtained confirmation from local authorities as to the methodology to calculate the future benefits and recorded
the impact. (cid:47)he Company recorded a benefit of $22 million at (cid:37)une 30(cid:11) 2020 related to a reduction in deferred ta(cid:77) e(cid:77)pense from
an allo(cid:76)ed step(cid:12)up of intangible assets for ta(cid:77) purposes(cid:11) an additional benefit of $2 million during fiscal year 2021(cid:11) and a
decrease of $2 million during fiscal year 2022.
((cid:3) in millions)
Deferred ta(cid:74) assets
Inventories
Accrued employee benefits
(cid:43)rovisions
(cid:41)et operating loss carryfor(cid:76)ards
(cid:47)a(cid:77) credit carryfor(cid:76)ards
Accruals and other
(cid:44)otal deferred ta(cid:74) assets
(cid:49)aluation allo(cid:76)ance
(cid:38)et deferred ta(cid:74) assets
Deferred ta(cid:74) liabilities
(cid:43)roperty(cid:11) plant(cid:11) and equipment
(cid:47)rade receivables
(cid:31)erivatives
(cid:48)ndistributed foreign earnings
(cid:44)otal deferred ta(cid:74) liabilities
(cid:38)et deferred ta(cid:74) liability
Balance sheet location(cid:25)
(cid:31)eferred ta(cid:77) assets
(cid:31)eferred ta(cid:77) liabilities
(cid:38)et deferred ta(cid:74) liability
Other intangible assets(cid:11) including gross impacts from S(cid:76)iss ta(cid:77) reform
62
18
325
3(cid:24)
48
(cid:19)0(cid:21)
(407)
100
(31(cid:24))
(304)
(cid:85)
(4)
(20)
((cid:20)(cid:18)(cid:21))
((cid:19)(cid:18)(cid:21))
130
(677)
((cid:19)(cid:18)(cid:21)) (cid:3)
(cid:3)
22
101
10
2(cid:24)3
40
63
(cid:19)2(cid:23)
(403)
12(cid:20)
(325)
(326)
(7)
(cid:85)
(25)
((cid:20)(cid:22)3)
((cid:19)(cid:19)(cid:21))
13(cid:24)
(6(cid:24)6)
((cid:19)(cid:19)(cid:21))
(cid:47)he Company maintains a valuation allo(cid:76)ance on net operating losses and other deferred ta(cid:77) assets in (cid:63)urisdictions for
(cid:76)hich it does not believe it is more li(cid:64)ely than not to reali(cid:79)e those deferred ta(cid:77) assets based upon all available positive and
negative evidence(cid:11) including historical operating performance(cid:11) carry(cid:12)bac(cid:64) periods(cid:11) reversal of ta(cid:77)able temporary differences(cid:11)
ta(cid:77) planning strategies(cid:11) and earnings e(cid:77)pectations. (cid:47)he Company(cid:6)s valuation allo(cid:76)ance increased by $4 million(cid:11) by
$40 million(cid:11) and by $73 million for fiscal year 2022(cid:11) 2021(cid:11) and 2020(cid:11) respectively.
As of (cid:37)une 30(cid:11) 2022 and 2021(cid:11) the Company had total net operating loss carry for(cid:76)ards(cid:11) including capital losses(cid:11) in the
amount of $1(cid:11)178 million and $1(cid:11)085 million(cid:11) respectively(cid:11) and ta(cid:77) credits in the amount of $3(cid:24) million and $40 million(cid:11)
respectively. (cid:47)he vast ma(cid:63)ority of the losses and ta(cid:77) credits do not e(cid:77)pire.
(cid:47)he Company considers the follo(cid:76)ing factors(cid:11) among others(cid:11) in evaluating its plans for indefinite reinvestment of its
subsidiaries(cid:6) earnings(cid:25) (i) the forecasts(cid:11) budgets(cid:11) and financial requirements of the Company and its subsidiaries(cid:11) both for the
long(cid:12)term and for the short(cid:12)term(cid:26) and (ii) the ta(cid:77) consequences of any decision to repatriate or reinvest earnings of any
subsidiary. As of (cid:37)une 30(cid:11) 2022(cid:11) the Company has not provided deferred ta(cid:77)es on appro(cid:77)imately $1(cid:11)0(cid:24)3 million of earnings in
certain foreign subsidiaries because such earnings are indefinitely reinvested in its international operations. (cid:48)pon distribution of
such earnings in the form of dividends or other(cid:76)ise(cid:11) the Company may be sub(cid:63)ect to incremental foreign ta(cid:77). It is not
practicable to estimate the amount of foreign ta(cid:77) that might be payable. As of (cid:37)une 30(cid:11) 2022(cid:11) a cumulative deferred ta(cid:77) liability
of $20 million has been recorded attributable to undistributed earnings that the Company has deemed are no longer indefinitely
reinvested. (cid:47)he remaining undistributed earnings of the Company(cid:6)s subsidiaries are not deemed to be indefinitely reinvested
and can be repatriated at no ta(cid:77) cost. Accordingly(cid:11) there is no provision for income or (cid:76)ithholding ta(cid:77)es on these earnings.
(cid:24)1
(cid:24)2
Amcor Annual Report 2022
(cid:38)ote 1(cid:22) - Share-based Compensation
Changes in outstanding share options (cid:76)ere as follo(cid:76)s(cid:25)
Form 10-K
93
(cid:47)he Company(cid:6)s equity incentive plans include grants of share options(cid:11) restricted shares(cid:14)units(cid:11) performance shares(cid:11)
performance rights(cid:11) and share rights.
In fiscal years 2022(cid:11) 2021(cid:11) and 2020(cid:11) share options and performance rights or performance shares (a(cid:76)arded to (cid:48).S.
participants in place of performance rights) (cid:76)ere granted to officers and employees. (cid:47)he e(cid:77)ercise price for share options (cid:76)as set
at the time of grant. (cid:47)he requisite service period for outstanding share options(cid:11) performance rights(cid:11) or performance shares
ranges from t(cid:76)o to three years. (cid:47)he a(cid:76)ards are also sub(cid:63)ect to performance and mar(cid:64)et conditions. At vesting(cid:11) share options can
be e(cid:77)ercised and converted to ordinary shares on a one(cid:12)for(cid:12)one basis(cid:11) sub(cid:63)ect to payment of the e(cid:77)ercise price. (cid:47)he contractual
term of the share options ranges from five to si(cid:77) years from the grant date. At vesting(cid:11) performance rights can be e(cid:77)ercised and
converted to ordinary shares on a one(cid:12)for(cid:12)one basis. (cid:43)erformance shares vest automatically and convert to ordinary shares on a
one(cid:12)for(cid:12)one basis.
(cid:45)estricted shares(cid:14)units may be granted to directors(cid:11) officers(cid:11) and employees of the Company and vest on terms as
described in the a(cid:76)ard. (cid:47)he restrictions prevent the participant from disposing of the restricted shares(cid:14)units during the vesting
period. (cid:47)he fair value of restricted shares(cid:14)units is determined based on the closing price of the Company(cid:6)s shares on the grant
date.
Share rights may be granted to directors(cid:11) officers(cid:11) and employees of the Company and vest on terms as described in the
a(cid:76)ard. (cid:47)he restrictions prevent the participant from disposing of the share rights during the vesting period. (cid:47)he fair value of
share rights is determined based on the closing price of the Company(cid:6)s shares on the grant date(cid:11) ad(cid:63)usted for dividend yield.
As of (cid:37)une 30(cid:11) 2022(cid:11) 47 million shares (cid:76)ere reserved for future grants. (cid:47)he Company uses treasury shares to settle
share(cid:12)based compensation obligations. (cid:47)reasury shares are acquired through mar(cid:64)et purchases throughout the fiscal year for the
required number of shares.
Share(cid:12)based compensation e(cid:77)pense (cid:76)as primarily recorded in selling(cid:11) general(cid:11) and administrative e(cid:77)penses in the
consolidated statements of income. (cid:47)he total share(cid:12)based compensation e(cid:77)pense (cid:76)as as follo(cid:76)s(cid:25)
((cid:3) in millions)
For the years ended June 30,
2021
2020
2022
Share(cid:12)based compensation e(cid:77)pense
$
63 $
58 $
34
As of (cid:37)une 30(cid:11) 2022(cid:11) there (cid:76)as $87 million of total unrecogni(cid:79)ed compensation cost related to all unvested share
options and other equity incentive plans. (cid:47)hat cost is e(cid:77)pected to be recogni(cid:79)ed over a (cid:76)eighted(cid:12)average period of 1.8 years.
(cid:47)he (cid:76)eighted(cid:12)average grant date fair values by type of equity incentive plan for a(cid:76)ards granted in fiscal years 2022(cid:11)
Share options
(cid:38)umber
Weighted-
average
(in millions)
E(cid:74)ercise Price
(in years)
((cid:3) in millions)
Remaining
Weighted-
average
Contract Life
Intrinsic
Value
Share options outstanding at June 30, 2021
(cid:34)ranted
E(cid:77)ercised
Forfeited
(cid:19)(cid:19) (cid:3)
(cid:24)
(11)
(8)
(cid:18)(cid:19)
3 (cid:3)
10(cid:12)(cid:18)(cid:23)
12.40
11.00
10.(cid:24)5
10(cid:12)(cid:20)(cid:20)
11(cid:12)1(cid:18)
Share options outstanding at June 30, 2022
Vested and e(cid:74)ercisable at June 30, 2022
3(cid:12)(cid:23) (cid:3)
2(cid:12)2 (cid:3)
(cid:22)0
3
(cid:47)he Company received $114 million(cid:11) $30 million(cid:11) and $1 million on the e(cid:77)ercise of stoc(cid:64) options during the fiscal
years ended (cid:37)une 30(cid:11) 2022(cid:11) 2021(cid:11) and 2020(cid:11) respectively. (cid:31)uring the fiscal years ended (cid:37)une 30(cid:11) 2022(cid:11) 2021(cid:11) and 2020(cid:11) the
intrinsic value associated (cid:76)ith the e(cid:77)ercise of share options (cid:76)as $15 million(cid:11) $6 million(cid:11) and $1 million(cid:11) respectively. (cid:47)he grant
date fair value of share options vested (cid:76)as $13 million(cid:11) $2 million(cid:11) and $0 million for fiscal years ended (cid:37)une 30(cid:11) 2022(cid:11) 2021(cid:11)
and 2020(cid:11) respectively.
Changes in outstanding other equity incentive plans and the fair values vested are presented belo(cid:76)(cid:25)
Restricted shares(cid:13)units
Performance rights(cid:13)shares
Share rights
(cid:38)umber
(in millions)
Weighted-
average
(cid:31)rant Date
Fair Value
(cid:38)umber
(in millions)
Weighted-
average
(cid:31)rant Date
Fair Value
(cid:38)umber
(in millions)
Weighted-
average
(cid:31)rant Date
Fair Value
Outstanding at June 30, 2021
(cid:34)ranted
E(cid:77)ercised
Forfeited
1 (cid:3)
1
(1)
(cid:77)
11(cid:12)1(cid:21)
11.62
10.32
(cid:85)
Outstanding at June 30, 2022
1 (cid:3)
11(cid:12)(cid:18)1
(cid:23) (cid:3)
4
(1)
(1)
11 (cid:3)
(cid:20)(cid:12)(cid:23)3
(cid:24).40
6.7(cid:24)
6.(cid:24)6
(cid:21)(cid:12)(cid:21)(cid:23)
3 (cid:3)
2
(1)
(cid:85)
(cid:18) (cid:3)
(cid:23)(cid:12)(cid:22)3
11.44
8.(cid:24)(cid:24)
10.50
10(cid:12)(cid:23)0
Fair value vested ((cid:3) in
millions)
(cid:52)ear Ended (cid:37)une 30(cid:11) 2021
(cid:52)ear Ended (cid:37)une 30(cid:11) 2020
(cid:52)ear Ended (cid:37)une 30(cid:11) 2022
$
$
$
Restricted shares(cid:13)units
Performance rights(cid:13)shares
Share rights
3
3
2
8
3
2
7
5
11
For the years ended June 30,
2021
2022
2020
2021 and 2020 (cid:76)ere as follo(cid:76)s(cid:25)
(in (cid:3) per unit of award)
Share options (1)
(cid:45)estricted shares(cid:14)units
(cid:43)erformance rights(cid:14)shares (2)
Share rights
1.2(cid:24)
11.62
(cid:24).40
11.44
1.08
11.06
7.22
10.22
0.74
10.15
6.70
8.80
(1) (cid:47)he fair value of share options (cid:76)as determined using Blac(cid:64)(cid:12)Scholes option pricing model (cid:76)ith the follo(cid:76)ing (cid:64)ey assumptions for
the fiscal years ended (cid:37)une 30(cid:11) 2022(cid:11) 2021 and 2020(cid:11) respectively(cid:25) ris(cid:64)(cid:12)free interest rate of 1.0(cid:4) (2021(cid:25) 0.2(cid:4)(cid:11) 2020(cid:25) 1.8(cid:4))(cid:11)
e(cid:77)pected share(cid:12)price volatility of 22.0(cid:4) (2021(cid:25) 25.0(cid:4)(cid:11) 2020(cid:25) 18.0(cid:4))(cid:11) e(cid:77)pected dividend yield of 4.1(cid:4) (2021(cid:25) 4.7(cid:4)(cid:11) 2020(cid:25) 4.6(cid:4))(cid:11)
and e(cid:77)pected life of options of 6.1 years (2021(cid:25) 6.1 years(cid:11) 2020(cid:25) 5.7 years).
(2) (cid:47)he fair value of performance rights(cid:14)shares (cid:76)as determined using a combination of Blac(cid:64)(cid:12)Scholes option pricing model and (cid:40)onte
Carlo simulation. (cid:47)he (cid:64)ey assumptions for the fiscal years ended (cid:37)une 30(cid:11) 2022(cid:11) 2021 and 2020(cid:11) respectively(cid:11) (cid:76)ere(cid:25) ris(cid:64)(cid:12)free
interest rate of 0.4(cid:4) (2021(cid:25) 0.2(cid:4)(cid:11) 2020(cid:25) 1.8(cid:4))(cid:11) e(cid:77)pected share(cid:12)price volatility of 22.0(cid:4) (2021(cid:25) 25.0(cid:4)(cid:11) 2020(cid:25) 18.0(cid:4))(cid:11) and e(cid:77)pected
dividend yield of 4.1(cid:4) (2021(cid:25) 4.7(cid:4)(cid:11) 2020(cid:25) 4.6(cid:4)).
(cid:24)3
Amcor Annual Report 2022
(cid:24)4
93
Form 10-K
94
Changes in outstanding share options (cid:76)ere as follo(cid:76)s(cid:25)
Share options
(cid:38)umber
(in millions)
Weighted-
average
E(cid:74)ercise Price
Remaining
Weighted-
average
Contract Life
(in years)
Intrinsic
Value
((cid:3) in millions)
Share options outstanding at June 30, 2021
(cid:34)ranted
E(cid:77)ercised
Forfeited
Share options outstanding at June 30, 2022
Vested and e(cid:74)ercisable at June 30, 2022
(cid:19)(cid:19) (cid:3)
(cid:24)
(11)
(8)
(cid:18)(cid:19)
3 (cid:3)
10(cid:12)(cid:18)(cid:23)
12.40
11.00
10.(cid:24)5
10(cid:12)(cid:20)(cid:20)
11(cid:12)1(cid:18)
3(cid:12)(cid:23) (cid:3)
2(cid:12)2 (cid:3)
(cid:22)0
3
(cid:47)he Company received $114 million(cid:11) $30 million(cid:11) and $1 million on the e(cid:77)ercise of stoc(cid:64) options during the fiscal
years ended (cid:37)une 30(cid:11) 2022(cid:11) 2021(cid:11) and 2020(cid:11) respectively. (cid:31)uring the fiscal years ended (cid:37)une 30(cid:11) 2022(cid:11) 2021(cid:11) and 2020(cid:11) the
intrinsic value associated (cid:76)ith the e(cid:77)ercise of share options (cid:76)as $15 million(cid:11) $6 million(cid:11) and $1 million(cid:11) respectively. (cid:47)he grant
date fair value of share options vested (cid:76)as $13 million(cid:11) $2 million(cid:11) and $0 million for fiscal years ended (cid:37)une 30(cid:11) 2022(cid:11) 2021(cid:11)
and 2020(cid:11) respectively.
Changes in outstanding other equity incentive plans and the fair values vested are presented belo(cid:76)(cid:25)
Restricted shares(cid:13)units
Performance rights(cid:13)shares
Share rights
(cid:38)umber
(in millions)
Weighted-
average
(cid:31)rant Date
Fair Value
(cid:38)umber
(in millions)
Weighted-
average
(cid:31)rant Date
Fair Value
(cid:38)umber
(in millions)
Weighted-
average
(cid:31)rant Date
Fair Value
Outstanding at June 30, 2021
(cid:34)ranted
E(cid:77)ercised
Forfeited
1 (cid:3)
1
(1)
(cid:77)
11(cid:12)1(cid:21)
11.62
10.32
(cid:85)
Outstanding at June 30, 2022
1 (cid:3)
11(cid:12)(cid:18)1
(cid:23) (cid:3)
4
(1)
(1)
11 (cid:3)
(cid:20)(cid:12)(cid:23)3
(cid:24).40
6.7(cid:24)
6.(cid:24)6
(cid:21)(cid:12)(cid:21)(cid:23)
3 (cid:3)
2
(1)
(cid:85)
(cid:18) (cid:3)
(cid:23)(cid:12)(cid:22)3
11.44
8.(cid:24)(cid:24)
10.50
10(cid:12)(cid:23)0
Fair value vested ((cid:3) in
millions)
Restricted shares(cid:13)units
Performance rights(cid:13)shares
Share rights
(cid:52)ear Ended (cid:37)une 30(cid:11) 2022
$
(cid:52)ear Ended (cid:37)une 30(cid:11) 2021
(cid:52)ear Ended (cid:37)une 30(cid:11) 2020
3
3
2
$
8
3
2
$
7
5
11
(cid:38)ote 1(cid:22) - Share-based Compensation
performance rights(cid:11) and share rights.
(cid:47)he Company(cid:6)s equity incentive plans include grants of share options(cid:11) restricted shares(cid:14)units(cid:11) performance shares(cid:11)
In fiscal years 2022(cid:11) 2021(cid:11) and 2020(cid:11) share options and performance rights or performance shares (a(cid:76)arded to (cid:48).S.
participants in place of performance rights) (cid:76)ere granted to officers and employees. (cid:47)he e(cid:77)ercise price for share options (cid:76)as set
at the time of grant. (cid:47)he requisite service period for outstanding share options(cid:11) performance rights(cid:11) or performance shares
ranges from t(cid:76)o to three years. (cid:47)he a(cid:76)ards are also sub(cid:63)ect to performance and mar(cid:64)et conditions. At vesting(cid:11) share options can
be e(cid:77)ercised and converted to ordinary shares on a one(cid:12)for(cid:12)one basis(cid:11) sub(cid:63)ect to payment of the e(cid:77)ercise price. (cid:47)he contractual
term of the share options ranges from five to si(cid:77) years from the grant date. At vesting(cid:11) performance rights can be e(cid:77)ercised and
converted to ordinary shares on a one(cid:12)for(cid:12)one basis. (cid:43)erformance shares vest automatically and convert to ordinary shares on a
one(cid:12)for(cid:12)one basis.
date.
(cid:45)estricted shares(cid:14)units may be granted to directors(cid:11) officers(cid:11) and employees of the Company and vest on terms as
described in the a(cid:76)ard. (cid:47)he restrictions prevent the participant from disposing of the restricted shares(cid:14)units during the vesting
period. (cid:47)he fair value of restricted shares(cid:14)units is determined based on the closing price of the Company(cid:6)s shares on the grant
Share rights may be granted to directors(cid:11) officers(cid:11) and employees of the Company and vest on terms as described in the
a(cid:76)ard. (cid:47)he restrictions prevent the participant from disposing of the share rights during the vesting period. (cid:47)he fair value of
share rights is determined based on the closing price of the Company(cid:6)s shares on the grant date(cid:11) ad(cid:63)usted for dividend yield.
As of (cid:37)une 30(cid:11) 2022(cid:11) 47 million shares (cid:76)ere reserved for future grants. (cid:47)he Company uses treasury shares to settle
share(cid:12)based compensation obligations. (cid:47)reasury shares are acquired through mar(cid:64)et purchases throughout the fiscal year for the
required number of shares.
Share(cid:12)based compensation e(cid:77)pense (cid:76)as primarily recorded in selling(cid:11) general(cid:11) and administrative e(cid:77)penses in the
consolidated statements of income. (cid:47)he total share(cid:12)based compensation e(cid:77)pense (cid:76)as as follo(cid:76)s(cid:25)
((cid:3) in millions)
For the years ended June 30,
2022
2021
2020
Share(cid:12)based compensation e(cid:77)pense
$
63 $
58 $
34
As of (cid:37)une 30(cid:11) 2022(cid:11) there (cid:76)as $87 million of total unrecogni(cid:79)ed compensation cost related to all unvested share
options and other equity incentive plans. (cid:47)hat cost is e(cid:77)pected to be recogni(cid:79)ed over a (cid:76)eighted(cid:12)average period of 1.8 years.
(cid:47)he (cid:76)eighted(cid:12)average grant date fair values by type of equity incentive plan for a(cid:76)ards granted in fiscal years 2022(cid:11)
2021 and 2020 (cid:76)ere as follo(cid:76)s(cid:25)
(in (cid:3) per unit of award)
Share options (1)
(cid:45)estricted shares(cid:14)units
(cid:43)erformance rights(cid:14)shares (2)
Share rights
For the years ended June 30,
2022
2021
2020
1.2(cid:24)
11.62
(cid:24).40
11.44
1.08
11.06
7.22
10.22
0.74
10.15
6.70
8.80
(1) (cid:47)he fair value of share options (cid:76)as determined using Blac(cid:64)(cid:12)Scholes option pricing model (cid:76)ith the follo(cid:76)ing (cid:64)ey assumptions for
the fiscal years ended (cid:37)une 30(cid:11) 2022(cid:11) 2021 and 2020(cid:11) respectively(cid:25) ris(cid:64)(cid:12)free interest rate of 1.0(cid:4) (2021(cid:25) 0.2(cid:4)(cid:11) 2020(cid:25) 1.8(cid:4))(cid:11)
e(cid:77)pected share(cid:12)price volatility of 22.0(cid:4) (2021(cid:25) 25.0(cid:4)(cid:11) 2020(cid:25) 18.0(cid:4))(cid:11) e(cid:77)pected dividend yield of 4.1(cid:4) (2021(cid:25) 4.7(cid:4)(cid:11) 2020(cid:25) 4.6(cid:4))(cid:11)
and e(cid:77)pected life of options of 6.1 years (2021(cid:25) 6.1 years(cid:11) 2020(cid:25) 5.7 years).
(2) (cid:47)he fair value of performance rights(cid:14)shares (cid:76)as determined using a combination of Blac(cid:64)(cid:12)Scholes option pricing model and (cid:40)onte
Carlo simulation. (cid:47)he (cid:64)ey assumptions for the fiscal years ended (cid:37)une 30(cid:11) 2022(cid:11) 2021 and 2020(cid:11) respectively(cid:11) (cid:76)ere(cid:25) ris(cid:64)(cid:12)free
interest rate of 0.4(cid:4) (2021(cid:25) 0.2(cid:4)(cid:11) 2020(cid:25) 1.8(cid:4))(cid:11) e(cid:77)pected share(cid:12)price volatility of 22.0(cid:4) (2021(cid:25) 25.0(cid:4)(cid:11) 2020(cid:25) 18.0(cid:4))(cid:11) and e(cid:77)pected
dividend yield of 4.1(cid:4) (2021(cid:25) 4.7(cid:4)(cid:11) 2020(cid:25) 4.6(cid:4)).
(cid:24)3
(cid:24)4
Amcor Annual Report 2022
Form 10-K
95
(cid:38)ote 1(cid:23) - Earnings Per Share Computations
(cid:47)he Company applies the t(cid:76)o(cid:12)class method (cid:76)hen computing its earnings per share ("E(cid:43)S")(cid:11) (cid:76)hich requires that net
income per share for each class of share be calculated assuming all of the Company(cid:6)s net income is distributed as dividends to
each class of share based on their contractual rights.
(cid:38)ote 20 - Contingencies and Legal Proceedings
Contingencies - Bra(cid:76)il
Basic E(cid:43)S is computed by dividing net income available to ordinary shareholders by the (cid:76)eighted(cid:12)average number of
most(cid:11) if not all(cid:11) of these matters. (cid:47)he Company does not believe that the ultimate resolution of these matters (cid:76)ill materially
ordinary shares outstanding after e(cid:77)cluding the ordinary shares to be repurchased using for(cid:76)ard contracts. (cid:31)iluted E(cid:43)S includes
the effects of share options(cid:11) restricted shares(cid:11) performance rights(cid:11) performance shares(cid:11) and share rights(cid:11) if dilutive.
((cid:3) in millions, e(cid:74)cept per share amounts)
(cid:38)umerator
(cid:41)et income attributable to Amcor plc
(cid:31)istributed and undistributed earnings attributable to shares to be repurchased
(cid:41)et income available to ordinary shareholders of Amcor plc(cid:85)basic and diluted
(cid:41)et income available to ordinary shareholders of Amcor plc from continuing
operations(cid:85)basic and diluted
(cid:41)et loss available to ordinary shareholders of Amcor plc from discontinued
operations(cid:85)basic and diluted
Denominator
(cid:50)eighted(cid:12)average ordinary shares outstanding
(cid:50)eighted(cid:12)average ordinary shares to be repurchased by Amcor plc
(cid:50)eighted(cid:12)average ordinary shares outstanding for E(cid:43)S(cid:85)basic
Effect of dilutive shares
(cid:50)eighted(cid:12)average ordinary shares outstanding for E(cid:43)S(cid:85)diluted
Per ordinary share income
Income from continuing operations
Loss from discontinued operations
Basic earnings per ordinary share
Income from continuing operations
Loss from discontinued operations
(cid:31)iluted earnings per ordinary share
$
$
$
$
$
$
$
$
Years ended June 30,
2021
2020
2022
805 $
(cid:24)3(cid:24) $
(3)
(2)
802 $
(cid:24)37 $
802 $
(cid:24)37 $
612
(cid:85)
612
620
(cid:85) $
(cid:85) $
(8)
deposited cash of $12 million (cid:76)ith the courts to continue to defend the cases referenced above.
As of (cid:37)une 30(cid:11) 2022(cid:11) the Company provided letters of credit of $36 million(cid:11) (cid:63)udicial insurance of $1 million and
1(cid:11)514
1(cid:11)553
(5)
(2)
1(cid:11)50(cid:24)
6
1(cid:11)516
1(cid:11)551
5
1(cid:11)556
1(cid:11)601
(1)
1(cid:11)600
2
1(cid:11)602
0.532 $
0.604 $
0.387
(cid:85)
(cid:85)
(0.005)
0.532 $
0.604 $
0.382
0.52(cid:24) $
0.602 $
0.387
(cid:85)
(cid:85)
(0.005)
0.52(cid:24) $
0.602 $
0.382
Certain stoc(cid:64) a(cid:76)ards outstanding (cid:76)ere not included in the computation of diluted earnings per share above because
they (cid:76)ould not have had a dilutive effect. (cid:47)he e(cid:77)cluded stoc(cid:64) a(cid:76)ards represented an aggregate of 7 million(cid:11) 6 million(cid:11) and 37
million shares at (cid:37)une 30(cid:11) 2022(cid:11) 2021(cid:11) and 2020(cid:11) respectively. Basic and diluted (cid:76)eighted average ordinary shares outstanding
have decreased in fiscal years 2022 and 2021 due to share repurchases.
operations(cid:11) or financial condition.
Other (cid:37)atters
(cid:47)he Company(cid:6)s operations in Bra(cid:79)il are involved in various governmental assessments and litigation(cid:11) principally
related to claims for e(cid:77)cise and income ta(cid:77)es. (cid:47)he Company vigorously defends its positions and believes it (cid:76)ill prevail on
impact the Company(cid:6)s consolidated results of operations(cid:11) financial position or cash flo(cid:76)s. (cid:48)nder customary local regulations(cid:11)
the Company(cid:6)s Bra(cid:79)ilian subsidiaries may need to post cash or other collateral if a challenge to any administrative assessment
proceeds to the Bra(cid:79)ilian court system(cid:26) ho(cid:76)ever(cid:11) the level of cash or collateral already pledged or potentially required to be
pledged (cid:76)ould not significantly impact the Company(cid:6)s liquidity. At (cid:37)une 30(cid:11) 2022 and 2021(cid:11) the Company has recorded
accruals of $12 million and $11 million(cid:11) respectively(cid:11) included in other non(cid:12)current liabilities in the consolidated balance
sheets(cid:11) and has estimated a reasonably possible loss e(cid:77)posure in e(cid:77)cess of the accrual of $20 million and $17 million(cid:11)
respectively. (cid:47)he litigation process is sub(cid:63)ect to many uncertainties and the outcome of individual matters cannot be accurately
predicted. (cid:47)he Company routinely assesses these matters as to the probability of ultimately incurring a liability and records the
best estimate of the ultimate loss in situations (cid:76)here the li(cid:64)elihood of an ultimate loss is probable. (cid:47)he Company(cid:6)s assessments
are based on its (cid:64)no(cid:76)ledge and e(cid:77)perience(cid:11) but the ultimate outcome of any of these matters may differ from the Company(cid:6)s
estimates.
Contingencies - Environmental (cid:37)atters
(cid:47)he Company(cid:11) along (cid:76)ith others(cid:11) has been identified as a potentially responsible party ("(cid:43)(cid:45)(cid:43)") at several (cid:76)aste
disposal sites under (cid:48).S. federal and related state environmental statutes and regulations and may face potentially material
environmental remediation obligations. (cid:50)hile the Company benefits from various forms of insurance policies(cid:11) actual coverage
may not(cid:11) or only partially(cid:11) cover the total potential e(cid:77)posures. (cid:47)he Company has recorded $17 million aggregate accruals for its
share of estimated future remediation costs at these sites.
In addition to the matters described above(cid:11) the Company has also recorded aggregate accruals of $43 million for
potential liabilities for remediation obligations at various (cid:76)orld(cid:76)ide locations that are o(cid:76)ned or operated by the Company(cid:11) or
(cid:76)ere formerly o(cid:76)ned or operated.
(cid:47)he SEC requires the Company to disclose certain information about proceedings arising under federal(cid:11) state(cid:11) or local
environmental provisions if the Company reasonably believes that such proceedings may result in monetary sanctions above a
stated threshold. (cid:43)ursuant to SEC regulations(cid:11) the Company uses a threshold of $1 million or more for purposes of determining
(cid:76)hether disclosure of any such proceedings is required. Applying this threshold(cid:11) there are no environmental matters required to
be disclosed for the fiscal year ended (cid:37)une 30(cid:11) 2022.
(cid:50)hile the Company believes that its accruals are adequate to cover its future obligations(cid:11) there can be no assurance
that the ultimate payments (cid:76)ill not e(cid:77)ceed the accrued amounts. (cid:41)evertheless(cid:11) based on the available information(cid:11) the Company
does not believe that its potential environmental obligations (cid:76)ill have a material adverse effect upon its liquidity(cid:11) results of
In the normal course of business(cid:11) the Company is sub(cid:63)ect to legal proceedings(cid:11) la(cid:76)suits(cid:11) and other claims. (cid:50)hile the
potential financial impact (cid:76)ith respect to these ordinary course matters is sub(cid:63)ect to many factors and uncertainties(cid:11)
management believes that any financial impact to the Company from these matters(cid:11) individually and in the aggregate(cid:11) (cid:76)ould not
have a material adverse effect on the Company(cid:6)s financial position or results of operation.
(cid:24)5
Amcor Annual Report 2022
(cid:24)6
each class of share based on their contractual rights.
Basic E(cid:43)S is computed by dividing net income available to ordinary shareholders by the (cid:76)eighted(cid:12)average number of
ordinary shares outstanding after e(cid:77)cluding the ordinary shares to be repurchased using for(cid:76)ard contracts. (cid:31)iluted E(cid:43)S includes
the effects of share options(cid:11) restricted shares(cid:11) performance rights(cid:11) performance shares(cid:11) and share rights(cid:11) if dilutive.
((cid:3) in millions, e(cid:74)cept per share amounts)
(cid:38)umerator
(cid:41)et income attributable to Amcor plc
(cid:31)istributed and undistributed earnings attributable to shares to be repurchased
(cid:41)et income available to ordinary shareholders of Amcor plc(cid:85)basic and diluted
(cid:41)et income available to ordinary shareholders of Amcor plc from continuing
operations(cid:85)basic and diluted
operations(cid:85)basic and diluted
(cid:41)et loss available to ordinary shareholders of Amcor plc from discontinued
Denominator
(cid:50)eighted(cid:12)average ordinary shares outstanding
(cid:50)eighted(cid:12)average ordinary shares to be repurchased by Amcor plc
(cid:50)eighted(cid:12)average ordinary shares outstanding for E(cid:43)S(cid:85)basic
Effect of dilutive shares
(cid:50)eighted(cid:12)average ordinary shares outstanding for E(cid:43)S(cid:85)diluted
Per ordinary share income
Income from continuing operations
Loss from discontinued operations
Basic earnings per ordinary share
Income from continuing operations
Loss from discontinued operations
(cid:31)iluted earnings per ordinary share
Years ended June 30,
2022
2021
2020
805 $
(cid:24)3(cid:24) $
(3)
(2)
802 $
(cid:24)37 $
802 $
(cid:24)37 $
612
(cid:85)
612
620
1(cid:11)514
1(cid:11)553
(5)
(2)
1(cid:11)50(cid:24)
6
1(cid:11)516
1(cid:11)551
5
1(cid:11)556
1(cid:11)601
(1)
1(cid:11)600
2
1(cid:11)602
0.532 $
0.604 $
0.387
(cid:85)
(cid:85)
(0.005)
0.532 $
0.604 $
0.382
0.52(cid:24) $
0.602 $
0.387
(cid:85)
(cid:85)
(0.005)
0.52(cid:24) $
0.602 $
0.382
$
$
$
$
$
$
$
$
Certain stoc(cid:64) a(cid:76)ards outstanding (cid:76)ere not included in the computation of diluted earnings per share above because
they (cid:76)ould not have had a dilutive effect. (cid:47)he e(cid:77)cluded stoc(cid:64) a(cid:76)ards represented an aggregate of 7 million(cid:11) 6 million(cid:11) and 37
million shares at (cid:37)une 30(cid:11) 2022(cid:11) 2021(cid:11) and 2020(cid:11) respectively. Basic and diluted (cid:76)eighted average ordinary shares outstanding
have decreased in fiscal years 2022 and 2021 due to share repurchases.
(cid:38)ote 1(cid:23) - Earnings Per Share Computations
(cid:38)ote 20 - Contingencies and Legal Proceedings
(cid:47)he Company applies the t(cid:76)o(cid:12)class method (cid:76)hen computing its earnings per share ("E(cid:43)S")(cid:11) (cid:76)hich requires that net
Contingencies - Bra(cid:76)il
income per share for each class of share be calculated assuming all of the Company(cid:6)s net income is distributed as dividends to
95
Form 10-K
96
(cid:47)he Company(cid:6)s operations in Bra(cid:79)il are involved in various governmental assessments and litigation(cid:11) principally
related to claims for e(cid:77)cise and income ta(cid:77)es. (cid:47)he Company vigorously defends its positions and believes it (cid:76)ill prevail on
most(cid:11) if not all(cid:11) of these matters. (cid:47)he Company does not believe that the ultimate resolution of these matters (cid:76)ill materially
impact the Company(cid:6)s consolidated results of operations(cid:11) financial position or cash flo(cid:76)s. (cid:48)nder customary local regulations(cid:11)
the Company(cid:6)s Bra(cid:79)ilian subsidiaries may need to post cash or other collateral if a challenge to any administrative assessment
proceeds to the Bra(cid:79)ilian court system(cid:26) ho(cid:76)ever(cid:11) the level of cash or collateral already pledged or potentially required to be
pledged (cid:76)ould not significantly impact the Company(cid:6)s liquidity. At (cid:37)une 30(cid:11) 2022 and 2021(cid:11) the Company has recorded
accruals of $12 million and $11 million(cid:11) respectively(cid:11) included in other non(cid:12)current liabilities in the consolidated balance
sheets(cid:11) and has estimated a reasonably possible loss e(cid:77)posure in e(cid:77)cess of the accrual of $20 million and $17 million(cid:11)
respectively. (cid:47)he litigation process is sub(cid:63)ect to many uncertainties and the outcome of individual matters cannot be accurately
predicted. (cid:47)he Company routinely assesses these matters as to the probability of ultimately incurring a liability and records the
best estimate of the ultimate loss in situations (cid:76)here the li(cid:64)elihood of an ultimate loss is probable. (cid:47)he Company(cid:6)s assessments
are based on its (cid:64)no(cid:76)ledge and e(cid:77)perience(cid:11) but the ultimate outcome of any of these matters may differ from the Company(cid:6)s
estimates.
(cid:85) $
(cid:85) $
(8)
deposited cash of $12 million (cid:76)ith the courts to continue to defend the cases referenced above.
As of (cid:37)une 30(cid:11) 2022(cid:11) the Company provided letters of credit of $36 million(cid:11) (cid:63)udicial insurance of $1 million and
Contingencies - Environmental (cid:37)atters
(cid:47)he Company(cid:11) along (cid:76)ith others(cid:11) has been identified as a potentially responsible party ("(cid:43)(cid:45)(cid:43)") at several (cid:76)aste
disposal sites under (cid:48).S. federal and related state environmental statutes and regulations and may face potentially material
environmental remediation obligations. (cid:50)hile the Company benefits from various forms of insurance policies(cid:11) actual coverage
may not(cid:11) or only partially(cid:11) cover the total potential e(cid:77)posures. (cid:47)he Company has recorded $17 million aggregate accruals for its
share of estimated future remediation costs at these sites.
In addition to the matters described above(cid:11) the Company has also recorded aggregate accruals of $43 million for
potential liabilities for remediation obligations at various (cid:76)orld(cid:76)ide locations that are o(cid:76)ned or operated by the Company(cid:11) or
(cid:76)ere formerly o(cid:76)ned or operated.
(cid:47)he SEC requires the Company to disclose certain information about proceedings arising under federal(cid:11) state(cid:11) or local
environmental provisions if the Company reasonably believes that such proceedings may result in monetary sanctions above a
stated threshold. (cid:43)ursuant to SEC regulations(cid:11) the Company uses a threshold of $1 million or more for purposes of determining
(cid:76)hether disclosure of any such proceedings is required. Applying this threshold(cid:11) there are no environmental matters required to
be disclosed for the fiscal year ended (cid:37)une 30(cid:11) 2022.
(cid:50)hile the Company believes that its accruals are adequate to cover its future obligations(cid:11) there can be no assurance
that the ultimate payments (cid:76)ill not e(cid:77)ceed the accrued amounts. (cid:41)evertheless(cid:11) based on the available information(cid:11) the Company
does not believe that its potential environmental obligations (cid:76)ill have a material adverse effect upon its liquidity(cid:11) results of
operations(cid:11) or financial condition.
Other (cid:37)atters
In the normal course of business(cid:11) the Company is sub(cid:63)ect to legal proceedings(cid:11) la(cid:76)suits(cid:11) and other claims. (cid:50)hile the
potential financial impact (cid:76)ith respect to these ordinary course matters is sub(cid:63)ect to many factors and uncertainties(cid:11)
management believes that any financial impact to the Company from these matters(cid:11) individually and in the aggregate(cid:11) (cid:76)ould not
have a material adverse effect on the Company(cid:6)s financial position or results of operation.
(cid:24)5
(cid:24)6
Amcor Annual Report 2022
(cid:38)ote 21 - Segments
(cid:47)he follo(cid:76)ing table presents information about reportable segments(cid:25)
Form 10-K
97
(cid:47)he Company(cid:6)s business is organi(cid:79)ed and presented in the t(cid:76)o reportable segments outlined belo(cid:76)(cid:25)
Fle(cid:74)ibles: Consists of operations that manufacture fle(cid:77)ible and film pac(cid:64)aging in the food and beverage(cid:11) medical and
pharmaceutical(cid:11) fresh produce(cid:11) snac(cid:64) food(cid:11) personal care(cid:11) and other industries.
Rigid Pac(cid:61)aging: Consists of operations that manufacture rigid containers for a broad range of predominantly beverage and
food products(cid:11) including carbonated soft drin(cid:64)s(cid:11) (cid:76)ater(cid:11) (cid:63)uices(cid:11) sports drin(cid:64)s(cid:11) mil(cid:64)(cid:12)based beverages(cid:11) spirits and beer(cid:11) sauces(cid:11)
dressings(cid:11) spreads and personal care items(cid:11) and plastic caps for a (cid:76)ide variety of applications.
Other consists of the Company(cid:6)s undistributed corporate e(cid:77)penses including e(cid:77)ecutive and functional compensation
costs(cid:11) equity method and other investments(cid:11) intercompany eliminations(cid:11) and other business activities.
Operating segments are organi(cid:79)ed along the Company(cid:6)s product lines and geographical areas. (cid:47)he Company(cid:6)s five
Fle(cid:77)ibles operating segments (Fle(cid:77)ibles Europe(cid:11) (cid:40)iddle East and Africa(cid:26) Fle(cid:77)ibles (cid:41)orth America(cid:26) Fle(cid:77)ibles Latin America(cid:26)
Fle(cid:77)ibles Asia (cid:43)acific(cid:26) and Specialty Cartons) have been aggregated in the Fle(cid:77)ibles reportable segment as they e(cid:77)hibit
similarity in economic characteristics and future prospects(cid:11) similarity in the products they offer(cid:11) their production technologies(cid:11)
the customers they serve(cid:11) the nature of their service delivery models(cid:11) and their regulatory environments.
(cid:47)he Company evaluates performance and allocates resources based on ad(cid:63)usted earnings before interest and ta(cid:77)es
("Ad(cid:63)usted EBI(cid:47)") from continuing operations. (cid:47)he Company defines Ad(cid:63)usted EBI(cid:47) as operating income ad(cid:63)usted 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(cid:14)(loss) of affiliated companies(cid:11) net of ta(cid:77).
(cid:47)he accounting policies of the reportable segments are the same as those in the consolidated financial statements.
(cid:31)uring the first quarter of fiscal year 2021(cid:11) the Company revised the presentation of ad(cid:63)usted earnings before interest and ta(cid:77)
("Ad(cid:63)usted EBI(cid:47)") from continuing operations in the reportable segments to include an allocation of certain research and
development and selling(cid:11) general(cid:11) and administrative e(cid:77)penses that management previously reflected in Other. (cid:47)he Company
refines its e(cid:77)pense allocation methodologies to the reportable segments periodically as more relevant information becomes
available and to align (cid:76)ith industry or mar(cid:64)et changes. Corporate e(cid:77)penses are allocated to the reportable segments based
primarily on direct attribution. (cid:43)rior period has been recast to conform to the ne(cid:76) cost allocation methodology.
Ad(cid:60)usted earnings before interest and ta(cid:74)es ((cid:2)Ad(cid:60)usted EBI(cid:44)(cid:2)) from
(cid:3)
1(cid:18),(cid:19)(cid:18)(cid:18) (cid:3)
12,(cid:22)(cid:20)1 (cid:3)
12,(cid:18)(cid:20)(cid:22)
Sales including intersegment sales
((cid:3) in millions)
Fle(cid:77)ibles
(cid:45)igid (cid:43)ac(cid:64)aging
Other
(cid:44)otal sales including intersegment sales
Intersegment sales
Fle(cid:77)ibles
(cid:45)igid (cid:43)ac(cid:64)aging
Other
(cid:44)otal intersegment sales
(cid:38)et sales
continuing operations
Fle(cid:77)ibles
(cid:45)igid (cid:43)ac(cid:64)aging
Other
Ad(cid:63)usted EBI(cid:47) from continuing operations
Less(cid:25) (cid:40)aterial restructuring programs (1)
Less(cid:25) Impairments in equity method investments (2)
Less(cid:25) (cid:40)aterial acquisition costs and other (3)
Less(cid:25) Amorti(cid:79)ation of acquired intangible assets from business
combinations (4)
Less(cid:25) Impact of hyperinflation (5)
Less(cid:25) (cid:43)ension settlements (6)
Add(cid:14)(Less)(cid:25) (cid:41)et gain(cid:14)(loss) on disposals (7)
Less(cid:25) (cid:43)roperty and other losses(cid:11) net (8)
Less(cid:25) (cid:45)ussia(cid:12)(cid:48)(cid:64)raine conflict impacts ((cid:24))
EBI(cid:47) from continuing operations
Interest income
Interest e(cid:77)pense
Years ended June 30,
2022
2021
2020
$
11(cid:11)151 $
10(cid:11)040 $
3(cid:11)3(cid:24)3
(cid:85)
14(cid:11)544
2(cid:11)823
(cid:85)
12(cid:11)863
(cid:24)(cid:11)755
2(cid:11)716
(cid:85)
12(cid:11)471
3
(cid:85)
(cid:85)
3
1(cid:11)2(cid:24)6
284
(83)
1(cid:11)4(cid:24)7
(106)
(26)
(145)
(1(cid:24)1)
(28)
(5)
(cid:85)
(cid:85)
(cid:85)
(cid:24)(cid:24)6
22
(207)
14
(cid:85)
(cid:85)
(cid:85)
(cid:85)
2
(cid:85)
(cid:85)
2
1(cid:11)517
28(cid:24)
1(cid:11)427
2(cid:24)(cid:24)
(105)
(105)
1(cid:11)701
1(cid:11)621
(37)
(cid:85)
(4)
(163)
(16)
(8)
(10)
(13)
(200)
1(cid:11)250
(15(cid:24))
24
(cid:85)
(88)
(cid:85)
(7)
(165)
(1(cid:24))
(cid:85)
(cid:24)
(cid:85)
(cid:85)
14
1(cid:11)351
(153)
(1(cid:24))
Equity in income (loss) of affiliated companies(cid:11) net of ta(cid:77)
Income from continuing operations before income ta(cid:74)es and e(cid:67)uity in
income (loss) of affiliated companies
(cid:3)
1,11(cid:19) (cid:3)
1,1(cid:23)3 (cid:3)
(cid:22)2(cid:19)
(1) (cid:40)aterial restructuring programs includes restructuring and related e(cid:77)penses for the 201(cid:24) Bemis Integration (cid:43)lan for fiscal year 2022
and 2018 (cid:45)igid (cid:43)ac(cid:64)aging (cid:45)estructuring (cid:43)lan and the 201(cid:24) Bemis Integration (cid:43)lan for fiscal years 2021 and 2020. (cid:45)efer to (cid:41)ote 7(cid:11)
"(cid:45)estructuring(cid:11)" for more information about the Company(cid:6)s restructuring activities.
(2)
Impairments in equity method investments include the impairment charges related to other(cid:12)than(cid:12)temporary impairments related to
the investment in A(cid:40)(cid:49)I(cid:34). (cid:31)uring the fiscal year 2021(cid:11) the Company sold its interest in A(cid:40)(cid:49)I(cid:34). (cid:45)efer to (cid:41)ote 8(cid:11) "Equity (cid:40)ethod
and Other Investments(cid:11)" for more information about the Company(cid:6)s equity method investments.
(3)
Includes costs associated (cid:76)ith the Bemis transaction. Fiscal year 2021 includes a $1(cid:24) million benefit related to Bra(cid:79)il indirect ta(cid:77)es
resulting from a (cid:40)ay 2021 Bra(cid:79)il Supreme Court decision. (cid:31)uring fiscal year 2020(cid:11) material acquisition costs and other includes
$58 million amorti(cid:79)ation of Bemis acquisition related inventory fair value step(cid:12)up and $88 million of Bemis transaction related
costs and integration costs not qualifying as e(cid:77)it costs(cid:11) including certain advisory(cid:11) legal(cid:11) audit(cid:11) and audit related fees.
(4) Amorti(cid:79)ation of acquired intangible assets from business combinations includes amorti(cid:79)ation e(cid:77)penses related to all acquired
intangible assets from past acquisitions(cid:11) including $26 million of sales bac(cid:64)log amorti(cid:79)ation for the fiscal year 2020 from the Bemis
(5)
Impact of hyperinflation includes the adverse impact of highly inflationary accounting for subsidiaries in Argentina (cid:76)here the
acquisition.
functional currency (cid:76)as the Argentine (cid:43)eso.
(cid:24)7
Amcor Annual Report 2022
(cid:24)8
(cid:38)ote 21 - Segments
(cid:47)he follo(cid:76)ing table presents information about reportable segments(cid:25)
97
Form 10-K
98
(cid:47)he Company(cid:6)s business is organi(cid:79)ed and presented in the t(cid:76)o reportable segments outlined belo(cid:76)(cid:25)
Fle(cid:74)ibles: Consists of operations that manufacture fle(cid:77)ible and film pac(cid:64)aging in the food and beverage(cid:11) medical and
pharmaceutical(cid:11) fresh produce(cid:11) snac(cid:64) food(cid:11) personal care(cid:11) and other industries.
Rigid Pac(cid:61)aging: Consists of operations that manufacture rigid containers for a broad range of predominantly beverage and
food products(cid:11) including carbonated soft drin(cid:64)s(cid:11) (cid:76)ater(cid:11) (cid:63)uices(cid:11) sports drin(cid:64)s(cid:11) mil(cid:64)(cid:12)based beverages(cid:11) spirits and beer(cid:11) sauces(cid:11)
dressings(cid:11) spreads and personal care items(cid:11) and plastic caps for a (cid:76)ide variety of applications.
Other consists of the Company(cid:6)s undistributed corporate e(cid:77)penses including e(cid:77)ecutive and functional compensation
costs(cid:11) equity method and other investments(cid:11) intercompany eliminations(cid:11) and other business activities.
Operating segments are organi(cid:79)ed along the Company(cid:6)s product lines and geographical areas. (cid:47)he Company(cid:6)s five
Fle(cid:77)ibles operating segments (Fle(cid:77)ibles Europe(cid:11) (cid:40)iddle East and Africa(cid:26) Fle(cid:77)ibles (cid:41)orth America(cid:26) Fle(cid:77)ibles Latin America(cid:26)
Fle(cid:77)ibles Asia (cid:43)acific(cid:26) and Specialty Cartons) have been aggregated in the Fle(cid:77)ibles reportable segment as they e(cid:77)hibit
similarity in economic characteristics and future prospects(cid:11) similarity in the products they offer(cid:11) their production technologies(cid:11)
the customers they serve(cid:11) the nature of their service delivery models(cid:11) and their regulatory environments.
(cid:47)he Company evaluates performance and allocates resources based on ad(cid:63)usted earnings before interest and ta(cid:77)es
("Ad(cid:63)usted EBI(cid:47)") from continuing operations. (cid:47)he Company defines Ad(cid:63)usted EBI(cid:47) as operating income ad(cid:63)usted 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(cid:14)(loss) of affiliated companies(cid:11) net of ta(cid:77).
(cid:47)he accounting policies of the reportable segments are the same as those in the consolidated financial statements.
(cid:31)uring the first quarter of fiscal year 2021(cid:11) the Company revised the presentation of ad(cid:63)usted earnings before interest and ta(cid:77)
("Ad(cid:63)usted EBI(cid:47)") from continuing operations in the reportable segments to include an allocation of certain research and
development and selling(cid:11) general(cid:11) and administrative e(cid:77)penses that management previously reflected in Other. (cid:47)he Company
refines its e(cid:77)pense allocation methodologies to the reportable segments periodically as more relevant information becomes
available and to align (cid:76)ith industry or mar(cid:64)et changes. Corporate e(cid:77)penses are allocated to the reportable segments based
primarily on direct attribution. (cid:43)rior period has been recast to conform to the ne(cid:76) cost allocation methodology.
((cid:3) in millions)
Sales including intersegment sales
Fle(cid:77)ibles
(cid:45)igid (cid:43)ac(cid:64)aging
Other
(cid:44)otal sales including intersegment sales
Intersegment sales
Fle(cid:77)ibles
(cid:45)igid (cid:43)ac(cid:64)aging
Other
(cid:44)otal intersegment sales
(cid:38)et sales
Ad(cid:60)usted earnings before interest and ta(cid:74)es ((cid:2)Ad(cid:60)usted EBI(cid:44)(cid:2)) from
continuing operations
Fle(cid:77)ibles
(cid:45)igid (cid:43)ac(cid:64)aging
Other
Ad(cid:63)usted EBI(cid:47) from continuing operations
Less(cid:25) (cid:40)aterial restructuring programs (1)
Less(cid:25) Impairments in equity method investments (2)
Less(cid:25) (cid:40)aterial acquisition costs and other (3)
Less(cid:25) Amorti(cid:79)ation of acquired intangible assets from business
combinations (4)
Less(cid:25) Impact of hyperinflation (5)
Less(cid:25) (cid:43)ension settlements (6)
Add(cid:14)(Less)(cid:25) (cid:41)et gain(cid:14)(loss) on disposals (7)
Less(cid:25) (cid:43)roperty and other losses(cid:11) net (8)
Less(cid:25) (cid:45)ussia(cid:12)(cid:48)(cid:64)raine conflict impacts ((cid:24))
EBI(cid:47) from continuing operations
Interest income
Interest e(cid:77)pense
Equity in income (loss) of affiliated companies(cid:11) net of ta(cid:77)
Income from continuing operations before income ta(cid:74)es and e(cid:67)uity in
income (loss) of affiliated companies
Years ended June 30,
2021
2020
2022
$
11(cid:11)151 $
10(cid:11)040 $
3(cid:11)3(cid:24)3
(cid:85)
14(cid:11)544
2(cid:11)823
(cid:85)
12(cid:11)863
(cid:85)
(cid:85)
(cid:85)
(cid:85)
2
(cid:85)
(cid:85)
2
(cid:24)(cid:11)755
2(cid:11)716
(cid:85)
12(cid:11)471
3
(cid:85)
(cid:85)
3
(cid:3)
1(cid:18),(cid:19)(cid:18)(cid:18) (cid:3)
12,(cid:22)(cid:20)1 (cid:3)
12,(cid:18)(cid:20)(cid:22)
1(cid:11)517
28(cid:24)
1(cid:11)427
2(cid:24)(cid:24)
(105)
(105)
1(cid:11)701
1(cid:11)621
(37)
(cid:85)
(4)
(163)
(16)
(8)
(10)
(13)
(200)
1(cid:11)250
24
(15(cid:24))
(cid:85)
(88)
(cid:85)
(7)
(165)
(1(cid:24))
(cid:85)
(cid:24)
(cid:85)
(cid:85)
1(cid:11)351
14
(153)
(1(cid:24))
1(cid:11)2(cid:24)6
284
(83)
1(cid:11)4(cid:24)7
(106)
(26)
(145)
(1(cid:24)1)
(28)
(5)
(cid:85)
(cid:85)
(cid:85)
(cid:24)(cid:24)6
22
(207)
14
(cid:3)
1,11(cid:19) (cid:3)
1,1(cid:23)3 (cid:3)
(cid:22)2(cid:19)
(2)
(1) (cid:40)aterial restructuring programs includes restructuring and related e(cid:77)penses for the 201(cid:24) Bemis Integration (cid:43)lan for fiscal year 2022
and 2018 (cid:45)igid (cid:43)ac(cid:64)aging (cid:45)estructuring (cid:43)lan and the 201(cid:24) Bemis Integration (cid:43)lan for fiscal years 2021 and 2020. (cid:45)efer to (cid:41)ote 7(cid:11)
"(cid:45)estructuring(cid:11)" for more information about the Company(cid:6)s restructuring activities.
Impairments in equity method investments include the impairment charges related to other(cid:12)than(cid:12)temporary impairments related to
the investment in A(cid:40)(cid:49)I(cid:34). (cid:31)uring the fiscal year 2021(cid:11) the Company sold its interest in A(cid:40)(cid:49)I(cid:34). (cid:45)efer to (cid:41)ote 8(cid:11) "Equity (cid:40)ethod
and Other Investments(cid:11)" for more information about the Company(cid:6)s equity method investments.
Includes costs associated (cid:76)ith the Bemis transaction. Fiscal year 2021 includes a $1(cid:24) million benefit related to Bra(cid:79)il indirect ta(cid:77)es
resulting from a (cid:40)ay 2021 Bra(cid:79)il Supreme Court decision. (cid:31)uring fiscal year 2020(cid:11) material acquisition costs and other includes
$58 million amorti(cid:79)ation of Bemis acquisition related inventory fair value step(cid:12)up and $88 million of Bemis transaction related
costs and integration costs not qualifying as e(cid:77)it costs(cid:11) including certain advisory(cid:11) legal(cid:11) audit(cid:11) and audit related fees.
(3)
(cid:24)7
(cid:24)8
Amcor Annual Report 2022
(4) Amorti(cid:79)ation of acquired intangible assets from business combinations includes amorti(cid:79)ation e(cid:77)penses related to all acquired
intangible assets from past acquisitions(cid:11) including $26 million of sales bac(cid:64)log amorti(cid:79)ation for the fiscal year 2020 from the Bemis
acquisition.
Impact of hyperinflation includes the adverse impact of highly inflationary accounting for subsidiaries in Argentina (cid:76)here the
functional currency (cid:76)as the Argentine (cid:43)eso.
(5)
(cid:47)he follo(cid:76)ing tables disaggregate net sales information by geography in (cid:76)hich the Company operates based on
manufacturing or selling operations(cid:25)
Year Ended June 30, 2022
Fle(cid:74)ibles
Rigid
Pac(cid:61)aging
(cid:44)otal
$
4(cid:11)2(cid:24)6 $
2(cid:11)656 $
(cid:3)
11,1(cid:19)1 (cid:3)
3,3(cid:23)3 (cid:3)
1(cid:18),(cid:19)(cid:18)(cid:18)
Year Ended June 30, 2021
Fle(cid:74)ibles
Rigid
Pac(cid:61)aging
(cid:44)otal
$
3(cid:11)71(cid:24) $
2(cid:11)31(cid:24) $
(cid:3)
10,03(cid:22) (cid:3)
2,(cid:22)23 (cid:3)
12,(cid:22)(cid:20)1
Year Ended June 30, 2020
Fle(cid:74)ibles
Rigid
Pac(cid:61)aging
(cid:44)otal
$
3(cid:11)637 $
2(cid:11)21(cid:24) $
1(cid:11)060
4(cid:11)062
1(cid:11)733
(cid:24)14
3(cid:11)828
1(cid:11)577
(cid:24)57
3(cid:11)665
1(cid:11)4(cid:24)3
737
(cid:85)
(cid:85)
504
(cid:85)
(cid:85)
4(cid:24)7
(cid:85)
(cid:85)
6(cid:11)(cid:24)52
1(cid:11)7(cid:24)7
4(cid:11)062
1(cid:11)733
6(cid:11)038
1(cid:11)418
3(cid:11)828
1(cid:11)577
5(cid:11)856
1(cid:11)454
3(cid:11)665
1(cid:11)4(cid:24)3
(1)
Includes the Company(cid:6)s country of domicile(cid:11) (cid:37)ersey. (cid:47)he Company had no sales in (cid:37)ersey in the period sho(cid:76)n.
(1)
Includes the Company(cid:6)s country of domicile(cid:11) (cid:37)ersey. (cid:47)he Company had no sales in (cid:37)ersey in the period sho(cid:76)n.
(cid:3)
(cid:23),(cid:21)(cid:19)2 (cid:3)
2,(cid:21)1(cid:20) (cid:3)
12,(cid:18)(cid:20)(cid:22)
((cid:3) in millions)
(cid:41)orth America
Latin America
Europe (1)
Asia (cid:43)acific
(cid:38)et sales
((cid:3) in millions)
(cid:41)orth America
Latin America
Europe (1)
Asia (cid:43)acific
(cid:38)et sales
((cid:3) in millions)
(cid:41)orth America
Latin America
Europe (1)
Asia (cid:43)acific
(cid:38)et sales
Form 10-K
99
(6) (cid:43)ension settlements in fiscal year 2022 relate to the purchases of group annuity contracts and transfer of pension plan assets and
related benefit obligations. (cid:45)efer to (cid:41)ote 13(cid:11) "(cid:43)ension and Other (cid:43)ost(cid:12)(cid:45)etirement (cid:43)lans(cid:11)" for more information. For fiscal year
2020(cid:11) impact of pension settlements includes the amount of actuarial losses recogni(cid:79)ed in the consolidated income statements
related to the settlement of certain defined benefit plans(cid:11) not including related ta(cid:77) effects.
(7) (cid:41)et gain(cid:14)(loss) on disposals includes an e(cid:77)pense of $10 million from the disposal of non(cid:12)core assets for fiscal year 2022. (cid:45)efer to
(cid:41)ote 11(cid:11) "Fair (cid:49)alue (cid:40)easurements(cid:11)" for more information. Fiscal year 2021 includes the gain reali(cid:79)ed upon the disposal of
A(cid:40)(cid:49)I(cid:34) and the loss upon disposal of other non(cid:12)core businesses not part of material restructuring programs. (cid:45)efer to (cid:41)ote 8(cid:11)
"Equity (cid:40)ethod and Other Investments(cid:11)" for further information on the disposal of A(cid:40)(cid:49)I(cid:34) and (cid:41)ote 5(cid:11) "(cid:31)ivestitures(cid:11)" for more
information about the Company(cid:6)s other disposals.
(8) (cid:43)roperty and other losses(cid:11) net includes property and related business losses primarily associated (cid:76)ith the destruction of the
Company(cid:6)s (cid:31)urban(cid:11) South Africa(cid:11) facility during general civil unrest in (cid:37)uly 2021(cid:11) net of insurance recovery.
((cid:24)) (cid:45)ussia(cid:12)(cid:48)(cid:64)raine conflict impacts include $138 million of impairment charges(cid:11) $57 million of restructuring and related e(cid:77)penses(cid:11) and
$5 million of other e(cid:77)penses for fiscal year 2022. (cid:45)efer to (cid:41)ote 4(cid:11)"(cid:45)estructuring(cid:11) Impairment(cid:11) and (cid:45)elated E(cid:77)penses(cid:11) (cid:41)et(cid:11) " and
(cid:41)ote 7(cid:11) "(cid:45)estructuring(cid:11)" for further information.
(cid:47)he tables belo(cid:76) present additional financial information by reportable segments(cid:25)
(1)
Includes the Company(cid:6)s country of domicile(cid:11) (cid:37)ersey. (cid:47)he Company had no sales in (cid:37)ersey in the period sho(cid:76)n.
((cid:3) in millions)
Fle(cid:77)ibles
(cid:45)igid (cid:43)ac(cid:64)aging
Other
(cid:44)otal capital e(cid:74)penditures for the ac(cid:67)uisition of long-lived assets
((cid:3) in millions)
Fle(cid:77)ibles
(cid:45)igid (cid:43)ac(cid:64)aging
Other
(cid:44)otal depreciation and amorti(cid:76)ation
Years ended June 30,
2021
2020
2022
376 $
336 $
136
15
127
5
(cid:19)2(cid:21) (cid:3)
(cid:18)(cid:20)(cid:22) (cid:3)
Years ended June 30,
2021
2020
2022
450 $
447 $
120
(cid:24)
115
10
(cid:19)(cid:21)(cid:23) (cid:3)
(cid:19)(cid:21)2 (cid:3)
271
125
4
(cid:18)00
478
111
18
(cid:20)0(cid:21)
$
(cid:3)
$
(cid:3)
(cid:47)otal assets by segment is not disclosed as the Company does not use total assets by segment to evaluate segment
performance or allocate resources and capital.
(cid:47)he Company did not have sales to a single customer that e(cid:77)ceeded 10(cid:4) of consolidated net sales for the fiscal years
ended (cid:37)une 30(cid:11) 2022(cid:11) 2021 and 2020(cid:11) respectively.
Sales by ma(cid:63)or product (cid:76)ere(cid:25)
((cid:3) in millions)
Films and other fle(cid:77)ible products
Specialty fle(cid:77)ible folding cartons
Containers(cid:11) preforms(cid:11) and closures
(cid:38)et sales
Segment
Fle(cid:77)ibles
Fle(cid:77)ibles
(cid:45)igid (cid:43)ac(cid:64)aging
Years ended June 30,
2021
2020
2022
$
10(cid:11)033 $
8(cid:11)(cid:24)34 $
1(cid:11)118
1(cid:11)104
3(cid:11)3(cid:24)3
1(cid:18),(cid:19)(cid:18)(cid:18) (cid:3)
2(cid:11)823
12,(cid:22)(cid:20)1 (cid:3)
(cid:3)
8(cid:11)637
1(cid:11)115
2(cid:11)716
12,(cid:18)(cid:20)(cid:22)
(cid:47)he follo(cid:76)ing table provides long(cid:12)lived asset information for the ma(cid:63)or countries in (cid:76)hich the Company operates.
Long(cid:12)lived assets include property(cid:11) plant(cid:11) and equipment(cid:11) net of accumulated depreciation and impairments.
((cid:3) in millions)
(cid:48)nited States of America
Other countries (1)
Long-lived assets
June 30,
2022
2021
$
(cid:3)
1(cid:11)720 $
1(cid:11)(cid:24)26
3,(cid:20)(cid:18)(cid:20) (cid:3)
1(cid:11)673
2(cid:11)088
3,(cid:21)(cid:20)1
(1)
Includes the Company(cid:6)s country of domicile(cid:11) (cid:37)ersey. (cid:47)he Company had no long(cid:12)lived assets in (cid:37)ersey in any period sho(cid:76)n. (cid:41)o
individual country represented more than 10(cid:4) of the respective totals.
(cid:24)(cid:24)
Amcor Annual Report 2022
100
99
Form 10-K
(cid:20)00
(cid:47)he follo(cid:76)ing tables disaggregate net sales information by geography in (cid:76)hich the Company operates based on
manufacturing or selling operations(cid:25)
(cid:44)otal
Fle(cid:74)ibles
Year Ended June 30, 2022
Rigid
Pac(cid:61)aging
((cid:3) in millions)
(cid:41)orth America
Latin America
Europe (1)
Asia (cid:43)acific
(cid:38)et sales
$
4(cid:11)2(cid:24)6 $
2(cid:11)656 $
1(cid:11)060
4(cid:11)062
1(cid:11)733
737
(cid:85)
(cid:85)
6(cid:11)(cid:24)52
1(cid:11)7(cid:24)7
4(cid:11)062
1(cid:11)733
(cid:3)
11,1(cid:19)1 (cid:3)
3,3(cid:23)3 (cid:3)
1(cid:18),(cid:19)(cid:18)(cid:18)
(6) (cid:43)ension settlements in fiscal year 2022 relate to the purchases of group annuity contracts and transfer of pension plan assets and
related benefit obligations. (cid:45)efer to (cid:41)ote 13(cid:11) "(cid:43)ension and Other (cid:43)ost(cid:12)(cid:45)etirement (cid:43)lans(cid:11)" for more information. For fiscal year
2020(cid:11) impact of pension settlements includes the amount of actuarial losses recogni(cid:79)ed in the consolidated income statements
related to the settlement of certain defined benefit plans(cid:11) not including related ta(cid:77) effects.
(7) (cid:41)et gain(cid:14)(loss) on disposals includes an e(cid:77)pense of $10 million from the disposal of non(cid:12)core assets for fiscal year 2022. (cid:45)efer to
(cid:41)ote 11(cid:11) "Fair (cid:49)alue (cid:40)easurements(cid:11)" for more information. Fiscal year 2021 includes the gain reali(cid:79)ed upon the disposal of
A(cid:40)(cid:49)I(cid:34) and the loss upon disposal of other non(cid:12)core businesses not part of material restructuring programs. (cid:45)efer to (cid:41)ote 8(cid:11)
"Equity (cid:40)ethod and Other Investments(cid:11)" for further information on the disposal of A(cid:40)(cid:49)I(cid:34) and (cid:41)ote 5(cid:11) "(cid:31)ivestitures(cid:11)" for more
information about the Company(cid:6)s other disposals.
(8) (cid:43)roperty and other losses(cid:11) net includes property and related business losses primarily associated (cid:76)ith the destruction of the
Company(cid:6)s (cid:31)urban(cid:11) South Africa(cid:11) facility during general civil unrest in (cid:37)uly 2021(cid:11) net of insurance recovery.
((cid:24)) (cid:45)ussia(cid:12)(cid:48)(cid:64)raine conflict impacts include $138 million of impairment charges(cid:11) $57 million of restructuring and related e(cid:77)penses(cid:11) and
$5 million of other e(cid:77)penses for fiscal year 2022. (cid:45)efer to (cid:41)ote 4(cid:11)"(cid:45)estructuring(cid:11) Impairment(cid:11) and (cid:45)elated E(cid:77)penses(cid:11) (cid:41)et(cid:11) " and
(cid:41)ote 7(cid:11) "(cid:45)estructuring(cid:11)" for further information.
(cid:44)otal capital e(cid:74)penditures for the ac(cid:67)uisition of long-lived assets
(cid:19)2(cid:21) (cid:3)
(cid:18)(cid:20)(cid:22) (cid:3)
((cid:3) in millions)
Fle(cid:77)ibles
(cid:45)igid (cid:43)ac(cid:64)aging
Other
((cid:3) in millions)
Fle(cid:77)ibles
(cid:45)igid (cid:43)ac(cid:64)aging
Other
Years ended June 30,
2022
2021
2020
376 $
336 $
$
(cid:3)
$
(cid:3)
136
15
120
(cid:24)
127
5
115
10
271
125
4
(cid:18)00
478
111
18
(cid:20)0(cid:21)
Years ended June 30,
2022
2021
2020
450 $
447 $
ended (cid:37)une 30(cid:11) 2022(cid:11) 2021 and 2020(cid:11) respectively.
Sales by ma(cid:63)or product (cid:76)ere(cid:25)
((cid:3) in millions)
Films and other fle(cid:77)ible products
Specialty fle(cid:77)ible folding cartons
Containers(cid:11) preforms(cid:11) and closures
(cid:38)et sales
Segment
Fle(cid:77)ibles
Fle(cid:77)ibles
(cid:45)igid (cid:43)ac(cid:64)aging
Years ended June 30,
2022
2021
2020
$
10(cid:11)033 $
8(cid:11)(cid:24)34 $
1(cid:11)118
3(cid:11)3(cid:24)3
1(cid:11)104
2(cid:11)823
8(cid:11)637
1(cid:11)115
2(cid:11)716
(cid:3)
1(cid:18),(cid:19)(cid:18)(cid:18) (cid:3)
12,(cid:22)(cid:20)1 (cid:3)
12,(cid:18)(cid:20)(cid:22)
(cid:47)he follo(cid:76)ing table provides long(cid:12)lived asset information for the ma(cid:63)or countries in (cid:76)hich the Company operates.
Long(cid:12)lived assets include property(cid:11) plant(cid:11) and equipment(cid:11) net of accumulated depreciation and impairments.
((cid:3) in millions)
(cid:48)nited States of America
Other countries (1)
Long-lived assets
June 30,
2022
2021
$
(cid:3)
1(cid:11)720 $
1(cid:11)(cid:24)26
3,(cid:20)(cid:18)(cid:20) (cid:3)
1(cid:11)673
2(cid:11)088
3,(cid:21)(cid:20)1
(1)
Includes the Company(cid:6)s country of domicile(cid:11) (cid:37)ersey. (cid:47)he Company had no long(cid:12)lived assets in (cid:37)ersey in any period sho(cid:76)n. (cid:41)o
individual country represented more than 10(cid:4) of the respective totals.
(cid:47)he tables belo(cid:76) present additional financial information by reportable segments(cid:25)
(1)
Includes the Company(cid:6)s country of domicile(cid:11) (cid:37)ersey. (cid:47)he Company had no sales in (cid:37)ersey in the period sho(cid:76)n.
((cid:3) in millions)
(cid:41)orth America
Latin America
Europe (1)
Asia (cid:43)acific
(cid:38)et sales
Year Ended June 30, 2021
Rigid
Pac(cid:61)aging
(cid:44)otal
Fle(cid:74)ibles
$
3(cid:11)71(cid:24) $
2(cid:11)31(cid:24) $
(cid:24)14
3(cid:11)828
1(cid:11)577
504
(cid:85)
(cid:85)
6(cid:11)038
1(cid:11)418
3(cid:11)828
1(cid:11)577
(cid:3)
10,03(cid:22) (cid:3)
2,(cid:22)23 (cid:3)
12,(cid:22)(cid:20)1
(1)
Includes the Company(cid:6)s country of domicile(cid:11) (cid:37)ersey. (cid:47)he Company had no sales in (cid:37)ersey in the period sho(cid:76)n.
(cid:44)otal depreciation and amorti(cid:76)ation
(cid:19)(cid:21)(cid:23) (cid:3)
(cid:19)(cid:21)2 (cid:3)
(cid:47)otal assets by segment is not disclosed as the Company does not use total assets by segment to evaluate segment
performance or allocate resources and capital.
(cid:47)he Company did not have sales to a single customer that e(cid:77)ceeded 10(cid:4) of consolidated net sales for the fiscal years
((cid:3) in millions)
(cid:41)orth America
Latin America
Europe (1)
Asia (cid:43)acific
(cid:38)et sales
Year Ended June 30, 2020
Rigid
Pac(cid:61)aging
(cid:44)otal
Fle(cid:74)ibles
$
3(cid:11)637 $
2(cid:11)21(cid:24) $
(cid:24)57
3(cid:11)665
1(cid:11)4(cid:24)3
4(cid:24)7
(cid:85)
(cid:85)
5(cid:11)856
1(cid:11)454
3(cid:11)665
1(cid:11)4(cid:24)3
(cid:3)
(cid:23),(cid:21)(cid:19)2 (cid:3)
2,(cid:21)1(cid:20) (cid:3)
12,(cid:18)(cid:20)(cid:22)
(1)
Includes the Company(cid:6)s country of domicile(cid:11) (cid:37)ersey. (cid:47)he Company had no sales in (cid:37)ersey in the period sho(cid:76)n.
(cid:24)(cid:24)
100
Amcor Annual Report 2022
(cid:38)ote 22 - Deed of Cross (cid:31)uarantee
(cid:47)he parent entity(cid:11) Amcor plc(cid:11) and its (cid:76)holly o(cid:76)ned subsidiaries listed belo(cid:76) are sub(cid:63)ect to a (cid:31)eed of Cross (cid:34)uarantee
dated (cid:37)une 24(cid:11) 201(cid:24) (the "(cid:31)eed") under (cid:76)hich each company guarantees the debts of the others(cid:25)
Deed of Cross (cid:31)uarantee
Statements of Income
((cid:3) in millions)
Form 10-K
(cid:20)0(cid:20)
(cid:16)m(cid:38)or (cid:30)t(cid:59) (cid:26)td
(cid:16)m(cid:38)or (cid:32)er(cid:56)(cid:44)(cid:38)e(cid:53) (cid:30)t(cid:59) (cid:26)td
(cid:16)m(cid:38)or In(cid:56)e(cid:53)tment(cid:53) (cid:30)t(cid:59) (cid:26)td
(cid:16)m(cid:38)or (cid:22)old(cid:44)ng(cid:53) (cid:3)(cid:16)(cid:55)(cid:53)tral(cid:44)a(cid:4) (cid:30)t(cid:59) (cid:26)td
(cid:16)m(cid:38)or Fle(cid:58)(cid:44)(cid:37)le(cid:53) (cid:21)ro(cid:55)(cid:51) (cid:30)t(cid:59) (cid:26)td
(cid:16)m(cid:38)or Fle(cid:58)(cid:44)(cid:37)le(cid:53) (cid:3)(cid:16)(cid:55)(cid:53)tral(cid:44)a(cid:4) (cid:30)t(cid:59) (cid:26)td
(cid:16)m(cid:38)or F(cid:44)nan(cid:38)e (cid:16)(cid:55)(cid:53)tral(cid:44)a (cid:30)t(cid:59) (cid:26)td
(cid:16)m(cid:38)or Fle(cid:58)(cid:44)(cid:37)le(cid:53) (cid:3)(cid:30)ort (cid:27)el(cid:37)o(cid:55)rne(cid:4) (cid:30)t(cid:59) (cid:26)td
(cid:16)m(cid:38)or (cid:19)(cid:55)ro(cid:51)ean (cid:22)old(cid:44)ng(cid:53) (cid:30)t(cid:59) (cid:26)td
(cid:16)m(cid:38)or (cid:30)a(cid:38)kag(cid:44)ng (cid:3)(cid:16)(cid:53)(cid:44)a(cid:4) (cid:30)t(cid:59) (cid:26)td
(cid:16)(cid:31)(cid:30) (cid:28)ort(cid:43) (cid:16)mer(cid:44)(cid:38)a (cid:22)old(cid:38)o (cid:26)td
(cid:16)(cid:31)(cid:30) (cid:26)(cid:16)(cid:33)(cid:16)(cid:27) (cid:22)old(cid:38)o (cid:26)td
(cid:47)he entities above (cid:76)ere the only parties to the (cid:31)eed at (cid:37)une 30(cid:11) 2022 and comprise the closed group for the purposes
of the (cid:31)eed (and also the e(cid:77)tended closed group). A(cid:45)(cid:43) (cid:41)orth America (cid:35)oldco Ltd and A(cid:45)(cid:43) LA(cid:47)A(cid:40) (cid:35)oldco Ltd (cid:76)ere ne(cid:76)ly
incorporated entities and (cid:76)ere added to the deed on September 25(cid:11) 201(cid:24). By a (cid:45)evocation (cid:31)eed(cid:11) dated September (cid:24)(cid:11) 2021(cid:11) the
(cid:31)eed (cid:76)as revo(cid:64)ed in respect of Amcor Fle(cid:77)ibles ((cid:31)andenong) (cid:43)ty Ltd(cid:11) (cid:43)ac(cid:64)sys (cid:43)ty Ltd(cid:11) (cid:43)ac(cid:64)sys (cid:35)oldings (Aus) (cid:43)ty Ltd(cid:11) and
(cid:47)echni(cid:12)Chem Australia (cid:43)ty Ltd. (cid:41)o other parties have been added(cid:11) removed or the sub(cid:63)ect to a notice of disposal since
September (cid:24)(cid:11) 2021.
By entering into the (cid:31)eed(cid:11) the (cid:76)holly o(cid:76)ned subsidiaries have been relieved from the requirement to prepare a
financial report and directors(cid:89) report under ASIC Corporations ((cid:50)holly(cid:12)o(cid:76)ned Companies) Instrument 2016(cid:14)785.
(cid:47)he follo(cid:76)ing financial statements are additional disclosure items specifically required by ASIC and represent the
consolidated results of the entities sub(cid:63)ect to the (cid:31)eed only.
For the year ended June 30,
(cid:41)et sales
Cost of sales
(cid:34)ross profit
Operating e(cid:77)penses
Other income(cid:11) net
Operating income
Interest income
Interest e(cid:77)pense
Other non(cid:12)operating loss(cid:11) net
Income before income ta(cid:77)es
Income ta(cid:77) (e(cid:77)pense)(cid:14)credit
(cid:38)et income
2022
2021
$
3(cid:24)1 $
(337)
54
(1(cid:11)251)
2(cid:11)355
12
(14)
1
335
(282)
53
(2(cid:11)441)
3(cid:11)8(cid:24)8
18
(11)
(5)
1(cid:11)158
1(cid:11)510
1(cid:11)157
1(cid:11)512
(4)
17
(cid:3)
1,1(cid:19)3 (cid:3)
1,(cid:19)2(cid:23)
101
Amcor Annual Report 2022
102
(cid:38)ote 22 - Deed of Cross (cid:31)uarantee
(cid:47)he parent entity(cid:11) Amcor plc(cid:11) and its (cid:76)holly o(cid:76)ned subsidiaries listed belo(cid:76) are sub(cid:63)ect to a (cid:31)eed of Cross (cid:34)uarantee
dated (cid:37)une 24(cid:11) 201(cid:24) (the "(cid:31)eed") under (cid:76)hich each company guarantees the debts of the others(cid:25)
Deed of Cross (cid:31)uarantee
Statements of Income
((cid:3) in millions)
For the year ended June 30,
2022
2021
(cid:20)0(cid:20)
Form 10-K
(cid:20)02
(cid:16)m(cid:38)or (cid:30)t(cid:59) (cid:26)td
(cid:16)m(cid:38)or (cid:32)er(cid:56)(cid:44)(cid:38)e(cid:53) (cid:30)t(cid:59) (cid:26)td
(cid:16)m(cid:38)or In(cid:56)e(cid:53)tment(cid:53) (cid:30)t(cid:59) (cid:26)td
(cid:16)m(cid:38)or (cid:22)old(cid:44)ng(cid:53) (cid:3)(cid:16)(cid:55)(cid:53)tral(cid:44)a(cid:4) (cid:30)t(cid:59) (cid:26)td
(cid:16)m(cid:38)or Fle(cid:58)(cid:44)(cid:37)le(cid:53) (cid:21)ro(cid:55)(cid:51) (cid:30)t(cid:59) (cid:26)td
(cid:16)m(cid:38)or Fle(cid:58)(cid:44)(cid:37)le(cid:53) (cid:3)(cid:16)(cid:55)(cid:53)tral(cid:44)a(cid:4) (cid:30)t(cid:59) (cid:26)td
(cid:16)m(cid:38)or F(cid:44)nan(cid:38)e (cid:16)(cid:55)(cid:53)tral(cid:44)a (cid:30)t(cid:59) (cid:26)td
(cid:16)m(cid:38)or Fle(cid:58)(cid:44)(cid:37)le(cid:53) (cid:3)(cid:30)ort (cid:27)el(cid:37)o(cid:55)rne(cid:4) (cid:30)t(cid:59) (cid:26)td
(cid:16)m(cid:38)or (cid:19)(cid:55)ro(cid:51)ean (cid:22)old(cid:44)ng(cid:53) (cid:30)t(cid:59) (cid:26)td
(cid:16)m(cid:38)or (cid:30)a(cid:38)kag(cid:44)ng (cid:3)(cid:16)(cid:53)(cid:44)a(cid:4) (cid:30)t(cid:59) (cid:26)td
(cid:16)(cid:31)(cid:30) (cid:28)ort(cid:43) (cid:16)mer(cid:44)(cid:38)a (cid:22)old(cid:38)o (cid:26)td
(cid:16)(cid:31)(cid:30) (cid:26)(cid:16)(cid:33)(cid:16)(cid:27) (cid:22)old(cid:38)o (cid:26)td
(cid:47)he entities above (cid:76)ere the only parties to the (cid:31)eed at (cid:37)une 30(cid:11) 2022 and comprise the closed group for the purposes
of the (cid:31)eed (and also the e(cid:77)tended closed group). A(cid:45)(cid:43) (cid:41)orth America (cid:35)oldco Ltd and A(cid:45)(cid:43) LA(cid:47)A(cid:40) (cid:35)oldco Ltd (cid:76)ere ne(cid:76)ly
incorporated entities and (cid:76)ere added to the deed on September 25(cid:11) 201(cid:24). By a (cid:45)evocation (cid:31)eed(cid:11) dated September (cid:24)(cid:11) 2021(cid:11) the
(cid:31)eed (cid:76)as revo(cid:64)ed in respect of Amcor Fle(cid:77)ibles ((cid:31)andenong) (cid:43)ty Ltd(cid:11) (cid:43)ac(cid:64)sys (cid:43)ty Ltd(cid:11) (cid:43)ac(cid:64)sys (cid:35)oldings (Aus) (cid:43)ty Ltd(cid:11) and
(cid:47)echni(cid:12)Chem Australia (cid:43)ty Ltd. (cid:41)o other parties have been added(cid:11) removed or the sub(cid:63)ect to a notice of disposal since
September (cid:24)(cid:11) 2021.
By entering into the (cid:31)eed(cid:11) the (cid:76)holly o(cid:76)ned subsidiaries have been relieved from the requirement to prepare a
financial report and directors(cid:89) report under ASIC Corporations ((cid:50)holly(cid:12)o(cid:76)ned Companies) Instrument 2016(cid:14)785.
(cid:47)he follo(cid:76)ing financial statements are additional disclosure items specifically required by ASIC and represent the
consolidated results of the entities sub(cid:63)ect to the (cid:31)eed only.
(cid:41)et sales
Cost of sales
(cid:34)ross profit
Operating e(cid:77)penses
Other income(cid:11) net
Operating income
Interest income
Interest e(cid:77)pense
Other non(cid:12)operating loss(cid:11) net
Income before income ta(cid:77)es
Income ta(cid:77) (e(cid:77)pense)(cid:14)credit
(cid:38)et income
$
3(cid:24)1 $
(337)
54
(1(cid:11)251)
2(cid:11)355
335
(282)
53
(2(cid:11)441)
3(cid:11)8(cid:24)8
1(cid:11)158
1(cid:11)510
12
(14)
1
18
(11)
(5)
1(cid:11)157
1(cid:11)512
(4)
17
(cid:3)
1,1(cid:19)3 (cid:3)
1,(cid:19)2(cid:23)
101
102
Amcor Annual Report 2022
Form 10-K
(cid:20)0(cid:22)
Deed of Cross (cid:31)uarantee
Summari(cid:76)ed Statements of Comprehensive Income
((cid:3) in millions)
Deed of Cross (cid:31)uarantee
Balance Sheet
((cid:3) in millions)
For the year ended June 30,
(cid:41)et income
Other comprehensive income(cid:14)(loss) (1) (cid:25)
Foreign currency translation ad(cid:63)ustments(cid:11) net of ta(cid:77)
(cid:41)et investment hedge of foreign operations(cid:11) net of ta(cid:77)
Other comprehensive income(cid:13)(loss)
Comprehensive (income)(cid:14)loss attributable to non(cid:12)controlling interests
2022
2021
$
1(cid:11)153 $
1(cid:11)52(cid:24)
(30)
(cid:85)
(30)
(cid:85)
32
(cid:85)
32
(cid:85)
(cid:44)otal comprehensive income
(cid:3)
1,123 (cid:3)
1,(cid:19)(cid:20)1
(1) All of the items in other comprehensive income(cid:14)(loss) may be reclassified subsequently to profit or loss.
Assets
As of June 30,
Current assets:
Cash and cash equivalents
(cid:45)eceivables(cid:11) net
Inventories
(cid:43)repaid e(cid:77)penses and other current assets
(cid:47)otal current assets
(cid:38)on-current assets:
(cid:43)roperty(cid:11) plant(cid:11) and equipment(cid:11) net
Deed of Cross (cid:31)uarantee
Summari(cid:76)ed Statements of Income and Accumulated Losses
((cid:3) in millions)
For the year ended June 30,
(cid:45)etained earnings(cid:11) beginning balance
(cid:41)et income
(cid:45)etained earnings before distribution
$
2022
2021
6(cid:11)737 $
1(cid:11)153
7(cid:11)8(cid:24)0
5(cid:11)(cid:24)35
1(cid:11)52(cid:24)
7(cid:11)464
(cid:31)ividends recogni(cid:79)ed during the financial period
(723)
(727)
Retained earnings at the end of the financial period
(cid:3)
(cid:21),1(cid:20)(cid:21) (cid:3)
(cid:20),(cid:21)3(cid:21)
(cid:31)eferred ta(cid:77) assets
Other intangible assets(cid:11) net
(cid:34)ood(cid:76)ill
Other non(cid:12)current assets
(cid:47)otal non(cid:12)current assets
(cid:44)otal assets
Current liabilities:
Short(cid:12)term debt
(cid:43)ayables
Accrued employee costs
Other current liabilities
(cid:47)otal current liabilities
(cid:38)on-current liabilities:
Liabilities
Long(cid:12)term debt(cid:11) less current portion
Other non(cid:12)current liabilities
(cid:44)otal liabilities
Issued
Additional paid(cid:12)in capital
(cid:45)etained earnings
Accumulated other comprehensive income
(cid:44)otal shareholders(cid:6) e(cid:67)uity
(cid:44)otal liabilities and shareholders(cid:6) e(cid:67)uity
Shareholders(cid:6) E(cid:67)uity
2022
2021
$
68 $
14(cid:11)03(cid:24)
14(cid:11)231
1(cid:19),0(cid:19)1 (cid:3)
(cid:24)01 $
(cid:3)
$
662
71
1(cid:24)
820
63
26
12
(cid:24)1
162
21
1(cid:24)1
1(cid:11)275
31(cid:24)
2
1,(cid:19)(cid:23)(cid:20)
15
5(cid:11)23(cid:24)
7(cid:11)167
1(cid:11)034
13,(cid:18)(cid:19)(cid:19)
(cid:3)
1(cid:19),0(cid:19)1 (cid:3)
47
6(cid:24)0
66
32
835
74
3(cid:24)
12
100
13(cid:11)336
13(cid:11)561
1(cid:18),3(cid:23)(cid:20)
816
137
23
10(cid:24)
1(cid:11)085
370
3
1,(cid:18)(cid:19)(cid:22)
15
5(cid:11)122
6(cid:11)737
1(cid:11)064
12,(cid:23)3(cid:22)
1(cid:18),3(cid:23)(cid:20)
103
Amcor Annual Report 2022
104
For the year ended June 30,
(cid:41)et income
Other comprehensive income(cid:14)(loss) (1) (cid:25)
Foreign currency translation ad(cid:63)ustments(cid:11) net of ta(cid:77)
(cid:41)et investment hedge of foreign operations(cid:11) net of ta(cid:77)
Other comprehensive income(cid:13)(loss)
2022
2021
$
1(cid:11)153 $
1(cid:11)52(cid:24)
(30)
(cid:85)
(30)
(cid:85)
32
(cid:85)
32
(cid:85)
Comprehensive (income)(cid:14)loss attributable to non(cid:12)controlling interests
(cid:44)otal comprehensive income
(cid:3)
1,123 (cid:3)
1,(cid:19)(cid:20)1
(1) All of the items in other comprehensive income(cid:14)(loss) may be reclassified subsequently to profit or loss.
Summari(cid:76)ed Statements of Income and Accumulated Losses
Deed of Cross (cid:31)uarantee
((cid:3) in millions)
For the year ended June 30,
(cid:45)etained earnings(cid:11) beginning balance
(cid:41)et income
(cid:45)etained earnings before distribution
2022
2021
$
6(cid:11)737 $
1(cid:11)153
7(cid:11)8(cid:24)0
5(cid:11)(cid:24)35
1(cid:11)52(cid:24)
7(cid:11)464
(cid:31)ividends recogni(cid:79)ed during the financial period
(723)
(727)
Retained earnings at the end of the financial period
(cid:3)
(cid:21),1(cid:20)(cid:21) (cid:3)
(cid:20),(cid:21)3(cid:21)
(cid:20)0(cid:22)
Form 10-K
(cid:20)0(cid:23)
Deed of Cross (cid:31)uarantee
Summari(cid:76)ed Statements of Comprehensive Income
((cid:3) in millions)
Deed of Cross (cid:31)uarantee
Balance Sheet
((cid:3) in millions)
As of June 30,
2022
2021
Assets
Current assets:
Cash and cash equivalents
(cid:45)eceivables(cid:11) net
Inventories
(cid:43)repaid e(cid:77)penses and other current assets
(cid:47)otal current assets
(cid:38)on-current assets:
(cid:43)roperty(cid:11) plant(cid:11) and equipment(cid:11) net
(cid:31)eferred ta(cid:77) assets
Other intangible assets(cid:11) net
(cid:34)ood(cid:76)ill
Other non(cid:12)current assets
(cid:47)otal non(cid:12)current assets
(cid:44)otal assets
Liabilities
Current liabilities:
Short(cid:12)term debt
(cid:43)ayables
Accrued employee costs
Other current liabilities
(cid:47)otal current liabilities
(cid:38)on-current liabilities:
Long(cid:12)term debt(cid:11) less current portion
Other non(cid:12)current liabilities
(cid:44)otal liabilities
Shareholders(cid:6) E(cid:67)uity
Issued
Additional paid(cid:12)in capital
(cid:45)etained earnings
Accumulated other comprehensive income
(cid:44)otal shareholders(cid:6) e(cid:67)uity
(cid:44)otal liabilities and shareholders(cid:6) e(cid:67)uity
$
(cid:3)
$
(cid:3)
68 $
662
71
1(cid:24)
820
63
26
12
(cid:24)1
14(cid:11)03(cid:24)
14(cid:11)231
1(cid:19),0(cid:19)1 (cid:3)
(cid:24)01 $
162
21
1(cid:24)1
1(cid:11)275
31(cid:24)
2
1,(cid:19)(cid:23)(cid:20)
15
5(cid:11)23(cid:24)
7(cid:11)167
1(cid:11)034
13,(cid:18)(cid:19)(cid:19)
1(cid:19),0(cid:19)1 (cid:3)
47
6(cid:24)0
66
32
835
74
3(cid:24)
12
100
13(cid:11)336
13(cid:11)561
1(cid:18),3(cid:23)(cid:20)
816
137
23
10(cid:24)
1(cid:11)085
370
3
1,(cid:18)(cid:19)(cid:22)
15
5(cid:11)122
6(cid:11)737
1(cid:11)064
12,(cid:23)3(cid:22)
1(cid:18),3(cid:23)(cid:20)
103
104
Amcor Annual Report 2022
Form 10-K
(cid:20)0(cid:24)
(cid:38)ote 23 - Supplemental Cash Flow Information
(cid:38)ote 2(cid:18) - Subse(cid:67)uent Events
Supplemental cash flo(cid:76) information is as follo(cid:76)s(cid:25)
((cid:3) in millions)
Interest paid(cid:11) net of amounts capitali(cid:79)ed
Income ta(cid:77)es paid
For the years ended June 30,
2022
2021
2020
$
155 $
256
146 $
321
212
304
(cid:41)on(cid:12)cash investing activities includes the purchase of property and equipment for (cid:76)hich payment has not been made.
As of (cid:37)une 30(cid:11) 2022(cid:11) 2021(cid:11) and 2020(cid:11) purchase of property and equipment(cid:11) accrued but unpaid(cid:11) (cid:76)as $110 million(cid:11) $76 million(cid:11)
and $78 million(cid:11) respectively.
On August 17(cid:11) 2022(cid:11) the Company(cid:6)s Board of (cid:31)irectors declared a quarterly cash dividend of $0.12 per share to be
paid on September 28(cid:11) 2022 to shareholders of record as of September 8(cid:11) 2022. Amcor has received a (cid:76)aiver from the
Australian Securities E(cid:77)change ("AS(cid:51)") settlement operating rules(cid:11) (cid:76)hich (cid:76)ill allo(cid:76) Amcor to defer processing conversions
bet(cid:76)een its ordinary share and C(cid:35)ESS (cid:31)epositary Instrument ("C(cid:31)I") registers from September 7(cid:11) 2022 to September 8(cid:11) 2022(cid:11)
inclusive.
On August 17(cid:11) 2022(cid:11) the Company(cid:6)s Board of (cid:31)irectors approved a $400 million buybac(cid:64) of ordinary shares and(cid:14)or
C(cid:35)ESS (cid:31)epositary Instruments ("C(cid:31)Is") in the ne(cid:77)t t(cid:76)elve months. (cid:43)ursuant to this program(cid:11) purchases of the Company(cid:6)s
ordinary shares and(cid:14)or C(cid:31)Is (cid:76)ill be made sub(cid:63)ect to mar(cid:64)et conditions and at prevailing mar(cid:64)et prices(cid:11) through open mar(cid:64)et
purchases. (cid:47)he Company e(cid:77)pects to complete the share buybac(cid:64) (cid:76)ithin t(cid:76)elve months(cid:11) ho(cid:76)ever(cid:11) the timing(cid:11) volume(cid:11) and
nature of repurchase may be amended(cid:11) suspended(cid:11) or discontinued at any time.
105
Amcor Annual Report 2022
106
(cid:20)0(cid:24)
Form 10-K
(cid:20)0(cid:25)
(cid:38)ote 23 - Supplemental Cash Flow Information
(cid:38)ote 2(cid:18) - Subse(cid:67)uent Events
Supplemental cash flo(cid:76) information is as follo(cid:76)s(cid:25)
((cid:3) in millions)
Income ta(cid:77)es paid
Interest paid(cid:11) net of amounts capitali(cid:79)ed
For the years ended June 30,
2022
2021
2020
$
155 $
256
146 $
321
212
304
(cid:41)on(cid:12)cash investing activities includes the purchase of property and equipment for (cid:76)hich payment has not been made.
As of (cid:37)une 30(cid:11) 2022(cid:11) 2021(cid:11) and 2020(cid:11) purchase of property and equipment(cid:11) accrued but unpaid(cid:11) (cid:76)as $110 million(cid:11) $76 million(cid:11)
and $78 million(cid:11) respectively.
On August 17(cid:11) 2022(cid:11) the Company(cid:6)s Board of (cid:31)irectors declared a quarterly cash dividend of $0.12 per share to be
paid on September 28(cid:11) 2022 to shareholders of record as of September 8(cid:11) 2022. Amcor has received a (cid:76)aiver from the
Australian Securities E(cid:77)change ("AS(cid:51)") settlement operating rules(cid:11) (cid:76)hich (cid:76)ill allo(cid:76) Amcor to defer processing conversions
bet(cid:76)een its ordinary share and C(cid:35)ESS (cid:31)epositary Instrument ("C(cid:31)I") registers from September 7(cid:11) 2022 to September 8(cid:11) 2022(cid:11)
inclusive.
On August 17(cid:11) 2022(cid:11) the Company(cid:6)s Board of (cid:31)irectors approved a $400 million buybac(cid:64) of ordinary shares and(cid:14)or
C(cid:35)ESS (cid:31)epositary Instruments ("C(cid:31)Is") in the ne(cid:77)t t(cid:76)elve months. (cid:43)ursuant to this program(cid:11) purchases of the Company(cid:6)s
ordinary shares and(cid:14)or C(cid:31)Is (cid:76)ill be made sub(cid:63)ect to mar(cid:64)et conditions and at prevailing mar(cid:64)et prices(cid:11) through open mar(cid:64)et
purchases. (cid:47)he Company e(cid:77)pects to complete the share buybac(cid:64) (cid:76)ithin t(cid:76)elve months(cid:11) ho(cid:76)ever(cid:11) the timing(cid:11) volume(cid:11) and
nature of repurchase may be amended(cid:11) suspended(cid:11) or discontinued at any time.
105
106
Amcor Annual Report 2022
Form 10-K
(cid:20)0(cid:26)
Item (cid:23)(cid:12) - Changes in and Disagreements with Accountants on Accounting and Financial Disclosure
PAR(cid:44) III
(cid:41)one.
Item (cid:23)A(cid:12) - Controls and Procedures
Evaluation of Disclosure Controls and Procedures
Our management(cid:11) (cid:76)ith the participation of our Chief E(cid:77)ecutive Officer and Chief Financial Officer(cid:11) has evaluated the
effectiveness of our disclosure controls and procedures as of (cid:37)une 30(cid:11) 2022. (cid:47)he term "disclosure controls and procedures(cid:11)" as
defined in (cid:45)ules 13a(cid:12)15(e) and 15d(cid:12)15(e) under the Securities E(cid:77)change Act of 1(cid:24)34(cid:11) as amended (the (cid:86)E(cid:77)change Act(cid:87))(cid:11) means
controls and other procedures of a company that are designed to ensure that information required to be disclosed by a company
in the reports that it files or submits under the E(cid:77)change Act is recorded(cid:11) processed(cid:11) summari(cid:79)ed(cid:11) and reported(cid:11) (cid:76)ithin the time
periods specified in the SEC(cid:6)s rules and forms. (cid:31)isclosure controls and procedures include(cid:11) (cid:76)ithout limitation(cid:11) controls and
procedures designed to ensure that information required to be disclosed by a company in the reports that it files or submits
under the E(cid:77)change Act is accumulated and communicated to our management(cid:11) including its principal e(cid:77)ecutive and financial
officers(cid:11) as appropriate(cid:11) to allo(cid:76) timely decisions regarding required disclosure.
(cid:40)anagement recogni(cid:79)es that any controls and procedures(cid:11) no matter ho(cid:76) (cid:76)ell designed and operated(cid:11) can provide only
report.
reasonable assurance of achieving their ob(cid:63)ectives and management necessarily applies its (cid:63)udgment in evaluating the cost(cid:12)
benefit relationship of possible controls and procedures. Based on this evaluation(cid:11) the Chief E(cid:77)ecutive Officer and Chief
Financial Officer have concluded that our disclosure controls and procedures (cid:76)ere effective as of (cid:37)une 30(cid:11) 2022.
Item 10(cid:12) - Directors, E(cid:74)ecutive Officers and Corporate (cid:31)overnance
(cid:47)he information required to be submitted in response to this item is omitted because a definitive pro(cid:77)y statement
containing such information (cid:76)ill be filed (cid:76)ith the Securities and E(cid:77)change Commission pursuant to (cid:45)egulation 14A (cid:76)ithin 120
days after (cid:37)une 30(cid:11) 2022(cid:11) and such information is e(cid:77)pressly incorporated herein by reference. Information (cid:76)ith respect to our
e(cid:77)ecutive officers appears in (cid:43)art I of this Annual (cid:45)eport on Form 10(cid:12)(cid:38).
Our Board Committee Charters(cid:11) Corporate (cid:34)overnance (cid:34)uidelines(cid:11) and our Code of Conduct (cid:5) Ethics (cid:43)olicy can be
electronically accessed at our (cid:76)ebsite (http(cid:25)(cid:14)(cid:14)(cid:76)(cid:76)(cid:76).amcor.com(cid:14)investors) under "Corporate (cid:34)overnance" or(cid:11) free of charge(cid:11) by
(cid:76)riting directly to us(cid:11) Attention(cid:25) Corporate Secretary. Our Board of (cid:31)irectors has adopted a Code of Conduct that applies to our
principal e(cid:77)ecutive officer(cid:11) principal financial officer(cid:11) principal accounting officer(cid:11) and other persons performing similar
functions. (cid:50)e intend to satisfy the disclosure requirements under Item 5.05 of Form 8(cid:12)(cid:38) regarding amendments to or (cid:76)aivers
from our Code of Conduct by posting such information on the Investor (cid:45)elations section of our (cid:76)ebsite promptly follo(cid:76)ing the
date of such amendment or (cid:76)aiver.
(cid:50)e are not including the information contained on our (cid:76)ebsite as part of(cid:11) or incorporating it by reference into(cid:11) this
(cid:37)anagement(cid:6)s Report on Internal Control Over Financial Reporting
Our management is responsible for establishing and maintaining adequate internal control over financial reporting.
Internal control over financial reporting is defined in (cid:45)ules 13a(cid:12)15(f) and 15d(cid:12)15(f) under the E(cid:77)change Act. Our internal
control over financial reporting is designed to provide reasonable assurance regarding the reliability of financial reporting and
the preparation of financial statements for e(cid:77)ternal purposes in accordance (cid:76)ith generally accepted accounting principles. Our
management evaluated the design and operating effectiveness of our internal control over financial reporting based on the
criteria established in the Internal Control-Integrated Framework (2013) issued by the Committee of Sponsoring Organi(cid:79)ations
of the (cid:47)read(cid:76)ay Commission (the "COSO frame(cid:76)or(cid:64)" (2013)). All internal control systems(cid:11) no matter ho(cid:76) (cid:76)ell designed(cid:11) have
inherent limitations. Accordingly(cid:11) even effective internal controls and procedures can provide only reasonable assurance (cid:76)ith
respect to financial statement preparation and presentation.
(cid:48)nder the supervision and (cid:76)ith the participation of our management(cid:11) including our Chief E(cid:77)ecutive Officer and Chief
Financial Officer(cid:11) (cid:76)e conducted an evaluation of the effectiveness of our internal control over financial reporting as of (cid:37)une 30(cid:11)
2022. Based on this evaluation(cid:11) our management concluded that (cid:76)e maintained effective internal control over financial
reporting as of (cid:37)une 30(cid:11) 2022.
(cid:47)he effectiveness of our internal control over financial reporting as of (cid:37)une 30(cid:11) 2022(cid:11) has been audited by
(cid:43)rice(cid:76)aterhouseCoopers A(cid:34)(cid:11) an independent registered public accounting firm(cid:11) as stated in their report(cid:11) (cid:76)hich appears on
"Item 8. (cid:12) Financial Statements and Supplementary (cid:31)ata" of this Annual (cid:45)eport on Form 10(cid:12)(cid:38).
Changes in Internal Control Over Financial Reporting
(cid:47)here (cid:76)ere no changes in our internal control over financial reporting (as defined in (cid:45)ules 13a(cid:12)15(f) and 15d(cid:12)15(f)
under the E(cid:77)change Act) that occurred during the fourth quarter of fiscal year 2022 that have materially affected(cid:11) or are
reasonably li(cid:64)ely to materially affect(cid:11) our internal control over financial reporting.
Item (cid:23)B(cid:12) - Other Information
(cid:41)one.
Item (cid:23)C(cid:12) - Disclosure Regarding Foreign Jurisdictions that Prevent Inspections
(cid:41)ot applicable.
107
Amcor Annual Report 2022
108
(cid:20)0(cid:26)
Form 10-K
(cid:20)0(cid:27)
Item (cid:23)(cid:12) - Changes in and Disagreements with Accountants on Accounting and Financial Disclosure
PAR(cid:44) III
(cid:41)one.
Item (cid:23)A(cid:12) - Controls and Procedures
Evaluation of Disclosure Controls and Procedures
Our management(cid:11) (cid:76)ith the participation of our Chief E(cid:77)ecutive Officer and Chief Financial Officer(cid:11) has evaluated the
effectiveness of our disclosure controls and procedures as of (cid:37)une 30(cid:11) 2022. (cid:47)he term "disclosure controls and procedures(cid:11)" as
defined in (cid:45)ules 13a(cid:12)15(e) and 15d(cid:12)15(e) under the Securities E(cid:77)change Act of 1(cid:24)34(cid:11) as amended (the (cid:86)E(cid:77)change Act(cid:87))(cid:11) means
controls and other procedures of a company that are designed to ensure that information required to be disclosed by a company
in the reports that it files or submits under the E(cid:77)change Act is recorded(cid:11) processed(cid:11) summari(cid:79)ed(cid:11) and reported(cid:11) (cid:76)ithin the time
periods specified in the SEC(cid:6)s rules and forms. (cid:31)isclosure controls and procedures include(cid:11) (cid:76)ithout limitation(cid:11) controls and
procedures designed to ensure that information required to be disclosed by a company in the reports that it files or submits
under the E(cid:77)change Act is accumulated and communicated to our management(cid:11) including its principal e(cid:77)ecutive and financial
officers(cid:11) as appropriate(cid:11) to allo(cid:76) timely decisions regarding required disclosure.
Item 10(cid:12) - Directors, E(cid:74)ecutive Officers and Corporate (cid:31)overnance
(cid:47)he information required to be submitted in response to this item is omitted because a definitive pro(cid:77)y statement
containing such information (cid:76)ill be filed (cid:76)ith the Securities and E(cid:77)change Commission pursuant to (cid:45)egulation 14A (cid:76)ithin 120
days after (cid:37)une 30(cid:11) 2022(cid:11) and such information is e(cid:77)pressly incorporated herein by reference. Information (cid:76)ith respect to our
e(cid:77)ecutive officers appears in (cid:43)art I of this Annual (cid:45)eport on Form 10(cid:12)(cid:38).
Our Board Committee Charters(cid:11) Corporate (cid:34)overnance (cid:34)uidelines(cid:11) and our Code of Conduct (cid:5) Ethics (cid:43)olicy can be
electronically accessed at our (cid:76)ebsite (http(cid:25)(cid:14)(cid:14)(cid:76)(cid:76)(cid:76).amcor.com(cid:14)investors) under "Corporate (cid:34)overnance" or(cid:11) free of charge(cid:11) by
(cid:76)riting directly to us(cid:11) Attention(cid:25) Corporate Secretary. Our Board of (cid:31)irectors has adopted a Code of Conduct that applies to our
principal e(cid:77)ecutive officer(cid:11) principal financial officer(cid:11) principal accounting officer(cid:11) and other persons performing similar
functions. (cid:50)e intend to satisfy the disclosure requirements under Item 5.05 of Form 8(cid:12)(cid:38) regarding amendments to or (cid:76)aivers
from our Code of Conduct by posting such information on the Investor (cid:45)elations section of our (cid:76)ebsite promptly follo(cid:76)ing the
date of such amendment or (cid:76)aiver.
(cid:50)e are not including the information contained on our (cid:76)ebsite as part of(cid:11) or incorporating it by reference into(cid:11) this
(cid:40)anagement recogni(cid:79)es that any controls and procedures(cid:11) no matter ho(cid:76) (cid:76)ell designed and operated(cid:11) can provide only
report.
reasonable assurance of achieving their ob(cid:63)ectives and management necessarily applies its (cid:63)udgment in evaluating the cost(cid:12)
benefit relationship of possible controls and procedures. Based on this evaluation(cid:11) the Chief E(cid:77)ecutive Officer and Chief
Financial Officer have concluded that our disclosure controls and procedures (cid:76)ere effective as of (cid:37)une 30(cid:11) 2022.
(cid:37)anagement(cid:6)s Report on Internal Control Over Financial Reporting
Our management is responsible for establishing and maintaining adequate internal control over financial reporting.
Internal control over financial reporting is defined in (cid:45)ules 13a(cid:12)15(f) and 15d(cid:12)15(f) under the E(cid:77)change Act. Our internal
control over financial reporting is designed to provide reasonable assurance regarding the reliability of financial reporting and
the preparation of financial statements for e(cid:77)ternal purposes in accordance (cid:76)ith generally accepted accounting principles. Our
management evaluated the design and operating effectiveness of our internal control over financial reporting based on the
criteria established in the Internal Control-Integrated Framework (2013) issued by the Committee of Sponsoring Organi(cid:79)ations
of the (cid:47)read(cid:76)ay Commission (the "COSO frame(cid:76)or(cid:64)" (2013)). All internal control systems(cid:11) no matter ho(cid:76) (cid:76)ell designed(cid:11) have
inherent limitations. Accordingly(cid:11) even effective internal controls and procedures can provide only reasonable assurance (cid:76)ith
respect to financial statement preparation and presentation.
(cid:48)nder the supervision and (cid:76)ith the participation of our management(cid:11) including our Chief E(cid:77)ecutive Officer and Chief
Financial Officer(cid:11) (cid:76)e conducted an evaluation of the effectiveness of our internal control over financial reporting as of (cid:37)une 30(cid:11)
2022. Based on this evaluation(cid:11) our management concluded that (cid:76)e maintained effective internal control over financial
reporting as of (cid:37)une 30(cid:11) 2022.
(cid:47)he effectiveness of our internal control over financial reporting as of (cid:37)une 30(cid:11) 2022(cid:11) has been audited by
(cid:43)rice(cid:76)aterhouseCoopers A(cid:34)(cid:11) an independent registered public accounting firm(cid:11) as stated in their report(cid:11) (cid:76)hich appears on
"Item 8. (cid:12) Financial Statements and Supplementary (cid:31)ata" of this Annual (cid:45)eport on Form 10(cid:12)(cid:38).
Changes in Internal Control Over Financial Reporting
(cid:47)here (cid:76)ere no changes in our internal control over financial reporting (as defined in (cid:45)ules 13a(cid:12)15(f) and 15d(cid:12)15(f)
under the E(cid:77)change Act) that occurred during the fourth quarter of fiscal year 2022 that have materially affected(cid:11) or are
reasonably li(cid:64)ely to materially affect(cid:11) our internal control over financial reporting.
Item (cid:23)B(cid:12) - Other Information
(cid:41)one.
(cid:41)ot applicable.
Item (cid:23)C(cid:12) - Disclosure Regarding Foreign Jurisdictions that Prevent Inspections
107
108
Amcor Annual Report 2022
Form 10-K
(cid:20)0(cid:28)
PAR(cid:44) IV
Item 11(cid:12) - E(cid:74)ecutive Compensation
Item 1(cid:19)(cid:12) - E(cid:74)hibits and Financial Statement Schedules
Information required to be submitted in response to this item is omitted because a definitive pro(cid:77)y statement
containing such information (cid:76)ill be filed (cid:76)ith the Securities and E(cid:77)change Commission pursuant to (cid:45)egulation 14A (cid:76)ithin 120
days after (cid:37)une 30(cid:11) 2022(cid:11) and such information is e(cid:77)pressly incorporated herein by reference.
Item 12(cid:12) - Security Ownership of Certain Beneficial Owners and (cid:37)anagement and Related Shareholder (cid:37)atters
Equity compensation plans as of (cid:37)une 30(cid:11) 2022 (cid:76)ere as follo(cid:76)s(cid:25)
(cid:38)umber of securities to be
issued upon e(cid:74)ercise of
outstanding options,
warrants, and rights
(a)
Weighted-average
e(cid:74)ercise price of
outstanding options,
warrants, and rights
(b)
(cid:38)umber of securities
remaining available for
future issuance under
e(cid:67)uity compensation plans
(e(cid:74)cluding securities
reflected in column (a))
(c)
61(cid:11)152(cid:11)(cid:24)0(cid:24) (1) $
10.66 (2)
47(cid:11)134(cid:11)428 (3)
(cid:85)
61(cid:11)152(cid:11)(cid:24)0(cid:24) (1) $
(cid:85)
10.66 (2)
(cid:85)
47(cid:11)134(cid:11)428 (3)
Plan Category
Equity compensation
plans approved by
security holders
Equity compensation
plans not approved by
security holders
(cid:47)otal
(1)
Includes outstanding option a(cid:76)ards of 45(cid:11)354(cid:11)450(cid:11) (cid:76)hich have a (cid:76)eighted(cid:12)average e(cid:77)ercise price of $10.66(cid:11) 10(cid:11)676(cid:11)188 a(cid:76)ards of
ordinary shares issuable upon vesting of performance shares(cid:14)rights(cid:11) 4(cid:11)230(cid:11)374 a(cid:76)ards of ordinary shares issuable upon vesting of
share rights(cid:11) and 8(cid:24)1(cid:11)8(cid:24)8 restricted shares issued under the share retention plan.
(2) (cid:43)erformance shares(cid:14)rights(cid:11) share rights(cid:11) restricted share a(cid:76)ards(cid:11) and non(cid:12)e(cid:77)ecutive director share plans are e(cid:77)cluded (cid:76)hen
determining the (cid:76)eighted(cid:12)average e(cid:77)ercise price of outstanding options.
(3) (cid:40)ay be issued as options(cid:11) performance shares(cid:14)rights(cid:11) share rights(cid:11) or restricted shares.
(cid:47)he additional information required to be submitted in response to this item is omitted because a definitive pro(cid:77)y
statement containing such information (cid:76)ill be filed (cid:76)ith the Securities and E(cid:77)change Commission pursuant to (cid:45)egulation 14A
(cid:76)ithin 120 days after (cid:37)une 30(cid:11) 2022(cid:11) and such information is e(cid:77)pressly incorporated herein by reference.
Item 13(cid:12) - Certain Relationships and Related (cid:44)ransactions, and Director Independence
(cid:47)he information required to be submitted in response to this item is omitted because a definitive pro(cid:77)y statement
containing such information (cid:76)ill be filed (cid:76)ith the Securities and E(cid:77)change Commission pursuant to (cid:45)egulation 14A (cid:76)ithin 120
days after (cid:37)une 30(cid:11) 2022(cid:11) and such information is e(cid:77)pressly incorporated herein by reference.
Item 1(cid:18)(cid:12) - Principal Accountant Fees and Services
(cid:47)he information required to be submitted in response to this item is omitted because a definitive pro(cid:77)y statement
containing such information (cid:76)ill be filed (cid:76)ith the Securities and E(cid:77)change Commission pursuant to (cid:45)egulation 14A (cid:76)ithin 120
days after (cid:37)une 30(cid:11) 2022(cid:11) and such information is e(cid:77)pressly incorporated herein by reference.
10(cid:24)
Amcor Annual Report 2022
110
Pages in
Form 10-(cid:35)
47
4(cid:24)
50
51
52
53
54
114
(a) Financial Statements, Financial Statement Schedule, and E(cid:74)hibits
(1) Financial Statements
(cid:45)eport of Independent (cid:45)egistered (cid:43)ublic Accounting Firm ((cid:43)CAOB I(cid:31) 1358)
Consolidated Statements of Income
Consolidated Statements of Comprehensive Income
Consolidated Balance Sheets
Consolidated Statements of Cash Flo(cid:76)s
Consolidated Statements of Equity
(cid:41)otes to Consolidated Financial Statements
(2) Financial Statement Schedule
Schedule II (cid:12) (cid:49)aluation and (cid:44)ualifying Accounts and (cid:45)eserves
All other schedules are omitted because they are not applicable(cid:11) or the required information is sho(cid:76)n
in the financial statements or notes thereto.
(3) E(cid:74)hibits
E(cid:74)hibit
Description
Form of Filing
(cid:47)ransaction Agreement(cid:11) dated as of August 6(cid:11) 2018(cid:11) by and among the Amcor
plc(cid:11) Amcor Limited(cid:11) Arctic Corp. and Bemis Company(cid:11) Inc. ((cid:86)Bemis(cid:87))
(incorporated by reference to Anne(cid:77) A to Amcor plc(cid:6)s (cid:45)egistration Statement on
Form S(cid:12)4 filed on (cid:40)arch 12(cid:11) 201(cid:24)).
Incorporated by (cid:45)eference
Articles of Association of Amcor plc (incorporated by reference to E(cid:77)hibit 3.1 to
Amcor plc(cid:89)s Current (cid:45)eport on Form 8(cid:12)(cid:38) filed on (cid:37)une 13(cid:11) 201(cid:24)).
Incorporated by (cid:45)eference
(cid:40)emorandum of Association of Amcor plc (incorporated by reference to E(cid:77)hibit
3.1 to Amcor plc(cid:89)s (cid:45)egistration Statement on Form S(cid:12)4 filed on (cid:40)arch 12(cid:11) 201(cid:24)).
Incorporated by (cid:45)eference
(cid:47)rust (cid:31)eed(cid:11) dated as of February 28(cid:11) 2011(cid:11) among Amcor Limited(cid:11) AF(cid:48)I(cid:11) Amcor
(cid:48)(cid:38) Finance Limited and (cid:31)B (cid:47)rustees ((cid:35)ong (cid:38)ong) Limited (the (cid:86)(cid:43)rincipal
(cid:47)rust (cid:31)eed(cid:87)) (incorporated by reference to E(cid:77)hibit 4.3 to Amcor plc(cid:89)s
(cid:45)egistration Statement on Form S(cid:12)4 filed on (cid:40)arch 12(cid:11) 201(cid:24)).
First Supplemental (cid:47)rust (cid:31)eed(cid:11) dated as of October 26(cid:11) 2012(cid:11) among Amcor
Limited(cid:11) AF(cid:48)I(cid:11) Amcor (cid:48)(cid:38) Finance Limited and (cid:31)B (cid:47)rustees ((cid:35)ong (cid:38)ong)
Limited (incorporated by reference to E(cid:77)hibit 4.5 to Amcor plc(cid:89)s (cid:45)egistration
Statement on Form S(cid:12)4 filed on (cid:40)arch 12(cid:11) 201(cid:24)).
Second Supplemental (cid:47)rust (cid:31)eed dated as of (cid:37)uly 22(cid:11) 201(cid:24) to the (cid:43)rincipal (cid:47)rust
(cid:31)eed(cid:11) among Amcor Limited(cid:11) AF(cid:48)I(cid:11) Amcor plc(cid:11) Bemis and the guarantors party
thereto (incorporated by reference to E(cid:77)hibit 10.1 to Amcor plc(cid:89)s Current (cid:45)eport
on Form 8(cid:12)(cid:38) filed on (cid:37)uly 26(cid:11) 201(cid:24)).
Final (cid:47)erms(cid:11) dated as of (cid:40)arch 20(cid:11) 2013(cid:11) among Amcor Limited(cid:11) Amcor Finance
((cid:48)SA)(cid:11) Inc. and Amcor (cid:48)(cid:38) Finance Limited(cid:11) relating to the 2.750(cid:4) (cid:41)otes due
2023 (incorporated by reference to E(cid:77)hibit 4.6 to Amcor plc(cid:89)s (cid:45)egistration
Statement on Form S(cid:12)4 filed on (cid:40)arch 12(cid:11) 201(cid:24)).
Form of 3.625(cid:4) (cid:41)otes due 2026 (incorporated by reference to E(cid:77)hibit 4.8 to
Amcor plc(cid:89)s (cid:45)egistration Statement on Form S(cid:12)4 filed on (cid:40)arch 12(cid:11) 201(cid:24)).
Form of 4.500(cid:4) (cid:41)otes due 2028 (incorporated by reference to E(cid:77)hibit 4.(cid:24) to
Amcor plc(cid:89)s (cid:45)egistration Statement on Form S(cid:12)4 filed on (cid:40)arch 12(cid:11) 201(cid:24)).
Form of 3.100(cid:4) (cid:41)otes due 2026 (incorporated by reference to E(cid:77)hibit 4.13 to
Amcor plc(cid:89)s (cid:45)egistration Statement on Form S(cid:12)4 filed on (cid:40)arch 12(cid:11) 201(cid:24)).
Incorporated by (cid:45)eference
Incorporated by (cid:45)eference
Incorporated by (cid:45)eference
Incorporated by (cid:45)eference
Incorporated by (cid:45)eference
Incorporated by (cid:45)eference
Incorporated by (cid:45)eference
Form of 2.630(cid:4) (cid:34)uaranteed Senior (cid:41)ote (cid:31)ue 2030 (incorporated by reference to
E(cid:77)hibit 4.2 on Amcor plc(cid:89)s Current (cid:45)eport on Form 8(cid:12)(cid:38) filed on (cid:37)une 1(cid:24)(cid:11) 2020).
Incorporated by (cid:45)eference
2 .1
3 .1
3 .2
4 .1
4 .2
4 .3
4 .4
4 .5
4 .6
4 .7
4 .8
Information required to be submitted in response to this item is omitted because a definitive pro(cid:77)y statement
containing such information (cid:76)ill be filed (cid:76)ith the Securities and E(cid:77)change Commission pursuant to (cid:45)egulation 14A (cid:76)ithin 120
days after (cid:37)une 30(cid:11) 2022(cid:11) and such information is e(cid:77)pressly incorporated herein by reference.
Item 12(cid:12) - Security Ownership of Certain Beneficial Owners and (cid:37)anagement and Related Shareholder (cid:37)atters
Equity compensation plans as of (cid:37)une 30(cid:11) 2022 (cid:76)ere as follo(cid:76)s(cid:25)
(cid:38)umber of securities to be
issued upon e(cid:74)ercise of
outstanding options,
warrants, and rights
(a)
Weighted-average
e(cid:74)ercise price of
outstanding options,
warrants, and rights
(b)
(cid:38)umber of securities
remaining available for
future issuance under
e(cid:67)uity compensation plans
(e(cid:74)cluding securities
reflected in column (a))
(c)
61(cid:11)152(cid:11)(cid:24)0(cid:24) (1) $
10.66 (2)
47(cid:11)134(cid:11)428 (3)
Plan Category
Equity compensation
plans approved by
security holders
Equity compensation
plans not approved by
security holders
(cid:47)otal
(1)
Includes outstanding option a(cid:76)ards of 45(cid:11)354(cid:11)450(cid:11) (cid:76)hich have a (cid:76)eighted(cid:12)average e(cid:77)ercise price of $10.66(cid:11) 10(cid:11)676(cid:11)188 a(cid:76)ards of
ordinary shares issuable upon vesting of performance shares(cid:14)rights(cid:11) 4(cid:11)230(cid:11)374 a(cid:76)ards of ordinary shares issuable upon vesting of
share rights(cid:11) and 8(cid:24)1(cid:11)8(cid:24)8 restricted shares issued under the share retention plan.
(2) (cid:43)erformance shares(cid:14)rights(cid:11) share rights(cid:11) restricted share a(cid:76)ards(cid:11) and non(cid:12)e(cid:77)ecutive director share plans are e(cid:77)cluded (cid:76)hen
determining the (cid:76)eighted(cid:12)average e(cid:77)ercise price of outstanding options.
(3) (cid:40)ay be issued as options(cid:11) performance shares(cid:14)rights(cid:11) share rights(cid:11) or restricted shares.
(cid:47)he additional information required to be submitted in response to this item is omitted because a definitive pro(cid:77)y
statement containing such information (cid:76)ill be filed (cid:76)ith the Securities and E(cid:77)change Commission pursuant to (cid:45)egulation 14A
(cid:76)ithin 120 days after (cid:37)une 30(cid:11) 2022(cid:11) and such information is e(cid:77)pressly incorporated herein by reference.
Item 13(cid:12) - Certain Relationships and Related (cid:44)ransactions, and Director Independence
(cid:47)he information required to be submitted in response to this item is omitted because a definitive pro(cid:77)y statement
containing such information (cid:76)ill be filed (cid:76)ith the Securities and E(cid:77)change Commission pursuant to (cid:45)egulation 14A (cid:76)ithin 120
days after (cid:37)une 30(cid:11) 2022(cid:11) and such information is e(cid:77)pressly incorporated herein by reference.
Item 1(cid:18)(cid:12) - Principal Accountant Fees and Services
(cid:47)he information required to be submitted in response to this item is omitted because a definitive pro(cid:77)y statement
containing such information (cid:76)ill be filed (cid:76)ith the Securities and E(cid:77)change Commission pursuant to (cid:45)egulation 14A (cid:76)ithin 120
days after (cid:37)une 30(cid:11) 2022(cid:11) and such information is e(cid:77)pressly incorporated herein by reference.
Item 11(cid:12) - E(cid:74)ecutive Compensation
Item 1(cid:19)(cid:12) - E(cid:74)hibits and Financial Statement Schedules
PAR(cid:44) IV
(cid:20)0(cid:28)
Form 10-K
(cid:20)(cid:20)0
(a) Financial Statements, Financial Statement Schedule, and E(cid:74)hibits
(1) Financial Statements
(cid:45)eport of Independent (cid:45)egistered (cid:43)ublic Accounting Firm ((cid:43)CAOB I(cid:31) 1358)
Consolidated Statements of Income
Consolidated Statements of Comprehensive Income
Consolidated Balance Sheets
Consolidated Statements of Cash Flo(cid:76)s
Consolidated Statements of Equity
(cid:41)otes to Consolidated Financial Statements
(2) Financial Statement Schedule
Schedule II (cid:12) (cid:49)aluation and (cid:44)ualifying Accounts and (cid:45)eserves
All other schedules are omitted because they are not applicable(cid:11) or the required information is sho(cid:76)n
in the financial statements or notes thereto.
Pages in
Form 10-(cid:35)
47
4(cid:24)
50
51
52
53
54
114
(cid:85)
61(cid:11)152(cid:11)(cid:24)0(cid:24) (1) $
(cid:85)
10.66 (2)
(cid:85)
47(cid:11)134(cid:11)428 (3)
(3) E(cid:74)hibits
E(cid:74)hibit
Description
Form of Filing
2 .1
3 .1
3 .2
4 .1
4 .2
4 .3
4 .4
4 .5
4 .6
4 .7
4 .8
(cid:47)ransaction Agreement(cid:11) dated as of August 6(cid:11) 2018(cid:11) by and among the Amcor
plc(cid:11) Amcor Limited(cid:11) Arctic Corp. and Bemis Company(cid:11) Inc. ((cid:86)Bemis(cid:87))
(incorporated by reference to Anne(cid:77) A to Amcor plc(cid:6)s (cid:45)egistration Statement on
Form S(cid:12)4 filed on (cid:40)arch 12(cid:11) 201(cid:24)).
Articles of Association of Amcor plc (incorporated by reference to E(cid:77)hibit 3.1 to
Amcor plc(cid:89)s Current (cid:45)eport on Form 8(cid:12)(cid:38) filed on (cid:37)une 13(cid:11) 201(cid:24)).
(cid:40)emorandum of Association of Amcor plc (incorporated by reference to E(cid:77)hibit
3.1 to Amcor plc(cid:89)s (cid:45)egistration Statement on Form S(cid:12)4 filed on (cid:40)arch 12(cid:11) 201(cid:24)).
(cid:47)rust (cid:31)eed(cid:11) dated as of February 28(cid:11) 2011(cid:11) among Amcor Limited(cid:11) AF(cid:48)I(cid:11) Amcor
(cid:48)(cid:38) Finance Limited and (cid:31)B (cid:47)rustees ((cid:35)ong (cid:38)ong) Limited (the (cid:86)(cid:43)rincipal
(cid:47)rust (cid:31)eed(cid:87)) (incorporated by reference to E(cid:77)hibit 4.3 to Amcor plc(cid:89)s
(cid:45)egistration Statement on Form S(cid:12)4 filed on (cid:40)arch 12(cid:11) 201(cid:24)).
First Supplemental (cid:47)rust (cid:31)eed(cid:11) dated as of October 26(cid:11) 2012(cid:11) among Amcor
Limited(cid:11) AF(cid:48)I(cid:11) Amcor (cid:48)(cid:38) Finance Limited and (cid:31)B (cid:47)rustees ((cid:35)ong (cid:38)ong)
Limited (incorporated by reference to E(cid:77)hibit 4.5 to Amcor plc(cid:89)s (cid:45)egistration
Statement on Form S(cid:12)4 filed on (cid:40)arch 12(cid:11) 201(cid:24)).
Second Supplemental (cid:47)rust (cid:31)eed dated as of (cid:37)uly 22(cid:11) 201(cid:24) to the (cid:43)rincipal (cid:47)rust
(cid:31)eed(cid:11) among Amcor Limited(cid:11) AF(cid:48)I(cid:11) Amcor plc(cid:11) Bemis and the guarantors party
thereto (incorporated by reference to E(cid:77)hibit 10.1 to Amcor plc(cid:89)s Current (cid:45)eport
on Form 8(cid:12)(cid:38) filed on (cid:37)uly 26(cid:11) 201(cid:24)).
Final (cid:47)erms(cid:11) dated as of (cid:40)arch 20(cid:11) 2013(cid:11) among Amcor Limited(cid:11) Amcor Finance
((cid:48)SA)(cid:11) Inc. and Amcor (cid:48)(cid:38) Finance Limited(cid:11) relating to the 2.750(cid:4) (cid:41)otes due
2023 (incorporated by reference to E(cid:77)hibit 4.6 to Amcor plc(cid:89)s (cid:45)egistration
Statement on Form S(cid:12)4 filed on (cid:40)arch 12(cid:11) 201(cid:24)).
Form of 3.625(cid:4) (cid:41)otes due 2026 (incorporated by reference to E(cid:77)hibit 4.8 to
Amcor plc(cid:89)s (cid:45)egistration Statement on Form S(cid:12)4 filed on (cid:40)arch 12(cid:11) 201(cid:24)).
Form of 4.500(cid:4) (cid:41)otes due 2028 (incorporated by reference to E(cid:77)hibit 4.(cid:24) to
Amcor plc(cid:89)s (cid:45)egistration Statement on Form S(cid:12)4 filed on (cid:40)arch 12(cid:11) 201(cid:24)).
Form of 3.100(cid:4) (cid:41)otes due 2026 (incorporated by reference to E(cid:77)hibit 4.13 to
Amcor plc(cid:89)s (cid:45)egistration Statement on Form S(cid:12)4 filed on (cid:40)arch 12(cid:11) 201(cid:24)).
Form of 2.630(cid:4) (cid:34)uaranteed Senior (cid:41)ote (cid:31)ue 2030 (incorporated by reference to
E(cid:77)hibit 4.2 on Amcor plc(cid:89)s Current (cid:45)eport on Form 8(cid:12)(cid:38) filed on (cid:37)une 1(cid:24)(cid:11) 2020).
Incorporated by (cid:45)eference
Incorporated by (cid:45)eference
Incorporated by (cid:45)eference
Incorporated by (cid:45)eference
Incorporated by (cid:45)eference
Incorporated by (cid:45)eference
Incorporated by (cid:45)eference
Incorporated by (cid:45)eference
Incorporated by (cid:45)eference
Incorporated by (cid:45)eference
Incorporated by (cid:45)eference
10(cid:24)
110
Amcor Annual Report 2022
E(cid:74)hibit
4 .(cid:24)
4 .10
4 .11
4 .12
4 .13
4 .14
4 .15
4 .16
4 .17
4 .18
4 .1(cid:24)
4 .20
10 .1
10 .2
10 .3
10 .4
10 .5
Form 10-K
111
Description
Form of 1.125(cid:4) (cid:34)uaranteed Senior (cid:41)ote (cid:31)ue 2027 (incorporated by reference to
E(cid:77)hibit 4.2 on Amcor plc(cid:89)s Current (cid:45)eport on Form 8(cid:12)(cid:38) filed on (cid:37)une 23(cid:11) 2020).
Indenture(cid:11) dated as of (cid:37)une 13(cid:11) 201(cid:24)(cid:11) by and among AF(cid:48)I(cid:11) as issuer(cid:11) Amcor plc(cid:11)
Amcor Limited(cid:11) Bemis(cid:11) Amcor (cid:48)(cid:38) Finance plc and (cid:31)eutsche Ban(cid:64) (cid:47)rust Company
Americas(cid:11) as trustee (incorporated by reference to E(cid:77)hibit 10.4 on Amcor plc(cid:89)s
Current (cid:45)eport on Form 8(cid:12)(cid:38) filed on (cid:37)une 17(cid:11) 201(cid:24)).
Form of Filing
Incorporated by (cid:45)eference
Incorporated by (cid:45)eference
Indenture(cid:11) dated as of (cid:37)une 1(cid:24)(cid:11) 2020(cid:11) by and among Bemis(cid:11) as issuer(cid:11) Amcor plc(cid:11)
Amcor Finance ((cid:48)SA)(cid:11) Inc.(cid:11) Amcor (cid:48)(cid:38) Finance plc(cid:11) Amcor (cid:43)ty Ltd and (cid:31)eutsche
Ban(cid:64) (cid:47)rust Company Americas(cid:11) the trustee (incorporated by reference to E(cid:77)hibit
4.1 on Amcor plc(cid:89)s Current (cid:45)eport on Form 8(cid:12)(cid:38) filed on (cid:37)une 1(cid:24)(cid:11) 2020).
Indenture(cid:11) dated as of (cid:37)une 23(cid:11) 2020(cid:11) by and among Amcor (cid:48)(cid:38) Finance plc(cid:11) as
issuer(cid:11) Amcor plc(cid:11) Amcor Finance ((cid:48)SA)(cid:11) Inc.(cid:11) Amcor (cid:43)ty Ltd(cid:11) Bemis Company(cid:11)
Inc. and (cid:31)eutsche Ban(cid:64) (cid:47)rust Company Americas(cid:11) the trustee (incorporated by
reference to E(cid:77)hibit 4.1 on Amcor plc(cid:89)s Current (cid:45)eport on Form 8(cid:12)(cid:38) filed on (cid:37)une
23(cid:11) 2020).
(cid:45)egistration (cid:45)ights Agreement(cid:11) dated as of (cid:37)une 13(cid:11) 201(cid:24)(cid:11) by and among Bemis(cid:11)
Amcor plc(cid:11) Amcor Limited(cid:11) AF(cid:48)I(cid:11) Amcor (cid:48)(cid:38) Finance plc and the (cid:31)ealer
(cid:40)anagers(cid:11) relating to the Bemis(cid:89) 3.100(cid:4) 2026 (cid:41)otes (incorporated by reference to
E(cid:77)hibit 10.6 on Amcor plc(cid:89)s Current (cid:45)eport on Form 8(cid:12)(cid:38) filed on (cid:37)une 17(cid:11) 201(cid:24)).
(cid:45)egistration (cid:45)ights Agreement(cid:11) dated as of (cid:37)une 13(cid:11) 201(cid:24)(cid:11) by and among AF(cid:48)I(cid:11)
Amcor plc(cid:11) Amcor Limited(cid:11) Bemis(cid:11) Amcor (cid:48)(cid:38) Finance plc and the (cid:31)ealer
(cid:40)anagers(cid:11) relating to the Amcor(cid:89)s 3.625(cid:4) 2026 (cid:41)otes (incorporated by
reference to E(cid:77)hibit 10.7 on Amcor plc(cid:89)s Current (cid:45)eport on Form 8(cid:12)(cid:38) filed on
(cid:37)une 17(cid:11) 201(cid:24)).
(cid:45)egistration (cid:45)ights Agreement(cid:11) dated as of (cid:37)une 13(cid:11) 201(cid:24)(cid:11) by and among AF(cid:48)I(cid:11)
Amcor plc(cid:11) Amcor Limited(cid:11) Bemis(cid:11) Amcor (cid:48)(cid:38) Finance plc and the (cid:31)ealer
(cid:40)anagers(cid:11) relating to the Amcor(cid:89)s 4.500(cid:4) 2028 (cid:41)otes (incorporated by
reference to E(cid:77)hibit 10.8 on Amcor plc(cid:89)s Current (cid:45)eport on Form 8(cid:12)(cid:38) filed on
(cid:37)une 17(cid:11) 201(cid:24)).
(cid:31)escription of Securities of the (cid:45)egistrant.
Form of 2.6(cid:24)0(cid:4) (cid:34)uaranteed Senior (cid:41)ote (cid:31)ue 2031 (incorporated by reference to
E(cid:77)hibit 4.3 on Amcor plc(cid:6)s Current (cid:45)eport on Form 8(cid:12)(cid:38) filed on (cid:40)ay 25(cid:11) 2021).
Form of 4.000(cid:4) (cid:34)uaranteed Senior (cid:41)ote due 2025 (incorporated by reference to
E(cid:77)hibit 4.3 on Amcor plc(cid:6)s Current (cid:45)eport on Form 8(cid:12)(cid:38) filed on (cid:40)ay 17(cid:11) 2022).
First Supplemental Indenture(cid:11) dated as of (cid:37)une 30(cid:11) 2022(cid:11) among Amcor Finance
((cid:48)SA)(cid:11) Inc.(cid:11) Amcor Fle(cid:77)ibles (cid:41)orth America(cid:11) Inc. and (cid:31)eutsche Ban(cid:64) (cid:47)rust
Company Americas (incorporated by reference to E(cid:77)hibit 4.7 on Amcor plc(cid:6)s
Current (cid:45)eport on Form 8(cid:12)(cid:38) filed on (cid:37)uly 1(cid:11) 2022).
Second Supplemental Indenture(cid:11) dated as of (cid:37)une 30(cid:11) 2022(cid:11) among Amcor Finance
((cid:48)SA)(cid:11) Inc.(cid:11) Amcor Fle(cid:77)ibles (cid:41)orth America(cid:11) Inc. and (cid:31)eutsche Ban(cid:64) (cid:47)rust
Company Americas (incorporated by reference to E(cid:77)hibit 4.6 on Amcor plc(cid:6)s
Current (cid:45)eport on Form 8(cid:12)(cid:38) filed on (cid:37)uly 1(cid:11) 2022).
Amcor plc 201(cid:24) Omnibus Incentive Share (cid:43)lan (incorporated by reference to
E(cid:77)hibit (cid:24)(cid:24).1 to Amcor plc(cid:89)s (cid:45)egistration Statement on Form S(cid:12)8 filed on (cid:37)uly 22(cid:11)
201(cid:24)).(cid:9)
Amcor Limited 2016(cid:14)17 Long (cid:47)erm Incentive (cid:43)lan (incorporated by reference to
E(cid:77)hibit (cid:24)(cid:24).3 to Amcor plc(cid:89)s (cid:45)egistration Statement on Form S(cid:12)8 filed on (cid:37)uly 22(cid:11)
201(cid:24)).(cid:9)
Amcor Limited 2017(cid:14)18 Long (cid:47)erm Incentive (cid:43)lan (incorporated by reference to
E(cid:77)hibit (cid:24)(cid:24).4 to Amcor plc(cid:89)s (cid:45)egistration Statement on Form S(cid:12)8 filed on (cid:37)uly 22(cid:11)
201(cid:24)).(cid:9)
Amcor (cid:45)igid (cid:43)lastics (cid:31)eferred Compensation (cid:43)lan(cid:11) as amended by that certain
First Amendment(cid:11) dated (cid:31)ecember 11(cid:11) 2014(cid:11) that certain Second Amendment(cid:11)
dated (cid:31)ecember 10(cid:11) 2018 and that certain (cid:47)hird Amendment(cid:11) dated (cid:31)ecember 16(cid:11)
201(cid:24) (incorporated by reference to E(cid:77)hibit 10.8 to Amcor plc(cid:6)s Form 10(cid:12)(cid:38) filed
on August 27(cid:11) 2020).(cid:9)
Employment Agreement bet(cid:76)een Amcor Limited and (cid:45)onald (cid:31)elia(cid:11) dated as of
(cid:37)anuary 21(cid:11) 2015 (incorporated by reference to E(cid:77)hibit 10.3 to Amcor plc(cid:89)s
(cid:45)egistration Statement on Form S(cid:12)4 filed on (cid:40)arch 12(cid:11) 201(cid:24)).(cid:9)
Incorporated by (cid:45)eference
Incorporated by (cid:45)eference
Incorporated by (cid:45)eference
Form 10(cid:12)(cid:38) filed on August 24(cid:11) 2021).(cid:9)
Incorporated by (cid:45)eference
Incorporated by (cid:45)eference
Filed (cid:35)ere(cid:76)ith
Incorporated by (cid:45)eference
Incorporated by (cid:45)eference
Incorporated by (cid:45)eference
Incorporated by (cid:45)eference
Act of 2002.
Incorporated by (cid:45)eference
Incorporated by (cid:45)eference
(cid:9) (cid:47)his e(cid:77)hibit is a management contract or compensatory plan or arrangement.
Item 1(cid:20)(cid:12) - Form 10-(cid:35) Summary
(cid:41)one.
Incorporated by (cid:45)eference
Incorporated by (cid:45)eference
Incorporated by (cid:45)eference
111
Amcor Annual Report 2022
112
E(cid:74)hibit
10 .6
10 .7
10 .8
10 .(cid:24)
10 .12
10 .13
22
23
31 .1
31 .2
32
101
104
Description
Form of Filing
Employment Agreement bet(cid:76)een Amcor Limited and (cid:40)ichael Casamento(cid:11) dated
as of September 23(cid:11) 2015 (incorporated by reference to E(cid:77)hibit 10.4 to Amcor
plc(cid:89)s (cid:45)egistration Statement on Form S(cid:12)4 filed on (cid:40)arch 12(cid:11) 201(cid:24)).(cid:9)
Incorporated by (cid:45)eference
Employment Agreement bet(cid:76)een Amcor Limited and Ian (cid:50)ilson(cid:11) dated as of (cid:40)ay
22(cid:11) 2014 (incorporated by reference to E(cid:77)hibit 10.5 to Amcor plc(cid:89)s (cid:45)egistration
Incorporated by (cid:45)eference
Statement on Form S(cid:12)4 filed on (cid:40)arch 12(cid:11) 201(cid:24)).(cid:9)
Employment Agreement bet(cid:76)een Amcor Limited and (cid:43)eter (cid:38)oniec(cid:79)ny(cid:11) dated as
of September 17(cid:11) 200(cid:24) (incorporated by reference to E(cid:77)hibit 10.6 to Amcor plc(cid:89)s
(cid:45)egistration Statement on Form S(cid:12)4 filed on (cid:40)arch 12(cid:11) 201(cid:24)).(cid:9)
Employment Agreement bet(cid:76)een Amcor Limited and Eric (cid:45)oegner(cid:11) dated as of
August 28(cid:11) 2018 (incorporated by reference to E(cid:77)hibit 10.7 to Amcor plc(cid:89)s
(cid:45)egistration Statement on Form S(cid:12)4 filed on (cid:40)arch 12(cid:11) 201(cid:24)).(cid:9)
Incorporated by (cid:45)eference
Incorporated by (cid:45)eference
10 .10
Form of (cid:31)eed of Appointment (incorporated by reference to E(cid:77)hibit 10.8 to
Amcor plc(cid:89)s (cid:45)egistration Statement on Form S(cid:12)4 filed on (cid:40)arch 12(cid:11) 201(cid:24)).(cid:9)
Incorporated by (cid:45)eference
Employment Agreement bet(cid:76)een Amcor Limited and (cid:40)ichael (cid:53)ac(cid:64)a(cid:11) dated as of
10 .11
February 24(cid:11) 2017 (incorporated by reference to E(cid:77)hibit 10.24 to Amcor plc(cid:6)s
Incorporated by (cid:45)eference
(cid:47)hree(cid:12)(cid:52)ear Syndicated Facility Agreement(cid:11) dated as of April 26(cid:11) 2022(cid:11) by and
among(cid:11) Amcor plc(cid:11) Amcor (cid:43)ty Ltd(cid:11) Amcor Finance ((cid:48)SA)(cid:11) Inc.(cid:11) Amcor (cid:48)(cid:38)
Finance plc and Amcor Fle(cid:77)ibles (cid:41)orth America(cid:11) Inc.(cid:11) the lenders party thereto
and (cid:37)(cid:43)(cid:40)organ Chase Ban(cid:64)(cid:11) (cid:41).A.(cid:11) as administrative agent and foreign
administrative agent (incorporated herein by reference to E(cid:77)hibit 10.1 to Amcor
plc(cid:6)s Current (cid:45)eport on Form 8(cid:12)(cid:38) filed on April 28(cid:11) 2022).
Five(cid:12)(cid:52)ear Syndicated Facility Agreement(cid:11) dated as of April 26(cid:11) 2022(cid:11) by and
among(cid:11) Amcor plc(cid:11) Amcor (cid:43)ty Ltd(cid:11) Amcor Finance ((cid:48)SA)(cid:11) Inc.(cid:11) Amcor (cid:48)(cid:38)
Finance plc and Amcor Fle(cid:77)ibles (cid:41)orth America(cid:11) Inc.(cid:11) the lenders party thereto
and (cid:37)(cid:43)(cid:40)organ Chase Ban(cid:64)(cid:11) (cid:41).A.(cid:11) as administrative agent and foreign
administrative agent (incorporated herein by reference to E(cid:77)hibit 10.2 to Amcor
plc(cid:6)s Current (cid:45)eport on Form 8(cid:12)(cid:38) filed on April 28(cid:11) 2022).
21 .1
Subsidiaries of Amcor plc.
Subsidiary (cid:34)uarantors and Issuers of (cid:34)uaranteed Securities.
Consent of (cid:43)rice(cid:76)aterhouseCoopers A(cid:34) as auditors for the financial statements of
Amcor plc.
Chief E(cid:77)ecutive Officer Certification required by (cid:45)ules 13a(cid:12)14 and 15d(cid:12)14 under
the Securities E(cid:77)change Act of 1(cid:24)34(cid:11) as amended.
Chief Financial Officer Certification required by (cid:45)ules 13a(cid:12)14 and 15d(cid:12)14 under
the Securities E(cid:77)change Act of 1(cid:24)34(cid:11) as amended.
Incorporated by (cid:45)eference
Incorporated by (cid:45)eference
Filed (cid:35)ere(cid:76)ith
Filed (cid:35)ere(cid:76)ith
Filed (cid:35)ere(cid:76)ith
Filed (cid:35)ere(cid:76)ith
Filed (cid:35)ere(cid:76)ith
Certification of Chief E(cid:77)ecutive Officer and Chief Financial Officer pursuant to
18 (cid:48).S.C. Section 1350(cid:11) as adopted pursuant to Section (cid:24)06 of Sarbanes O(cid:77)ley
Furnished (cid:35)ere(cid:76)ith
Inline (cid:51)B(cid:45)L Interactive data files (cid:84) (cid:47)he (cid:51)B(cid:45)L Instance (cid:31)ocument does not
appear in the Interactive (cid:31)ata File because its (cid:51)B(cid:45)L tags are embedded (cid:76)ithin the
Filed Electronically
Inline (cid:51)B(cid:45)L document.
E(cid:77)hibit 101).
Cover (cid:43)age Interactive (cid:31)ata File (formatted as Inline (cid:51)B(cid:45)L and contained in
Filed Electronically
111
Form 10-K
(cid:20)(cid:20)2
E(cid:74)hibit
10 .6
Description
Employment Agreement bet(cid:76)een Amcor Limited and (cid:40)ichael Casamento(cid:11) dated
as of September 23(cid:11) 2015 (incorporated by reference to E(cid:77)hibit 10.4 to Amcor
plc(cid:89)s (cid:45)egistration Statement on Form S(cid:12)4 filed on (cid:40)arch 12(cid:11) 201(cid:24)).(cid:9)
Form of Filing
Incorporated by (cid:45)eference
10 .7
10 .8
10 .(cid:24)
10 .10
10 .11
10 .12
10 .13
Employment Agreement bet(cid:76)een Amcor Limited and Ian (cid:50)ilson(cid:11) dated as of (cid:40)ay
22(cid:11) 2014 (incorporated by reference to E(cid:77)hibit 10.5 to Amcor plc(cid:89)s (cid:45)egistration
Statement on Form S(cid:12)4 filed on (cid:40)arch 12(cid:11) 201(cid:24)).(cid:9)
Incorporated by (cid:45)eference
Employment Agreement bet(cid:76)een Amcor Limited and (cid:43)eter (cid:38)oniec(cid:79)ny(cid:11) dated as
of September 17(cid:11) 200(cid:24) (incorporated by reference to E(cid:77)hibit 10.6 to Amcor plc(cid:89)s
(cid:45)egistration Statement on Form S(cid:12)4 filed on (cid:40)arch 12(cid:11) 201(cid:24)).(cid:9)
Employment Agreement bet(cid:76)een Amcor Limited and Eric (cid:45)oegner(cid:11) dated as of
August 28(cid:11) 2018 (incorporated by reference to E(cid:77)hibit 10.7 to Amcor plc(cid:89)s
(cid:45)egistration Statement on Form S(cid:12)4 filed on (cid:40)arch 12(cid:11) 201(cid:24)).(cid:9)
Form of (cid:31)eed of Appointment (incorporated by reference to E(cid:77)hibit 10.8 to
Amcor plc(cid:89)s (cid:45)egistration Statement on Form S(cid:12)4 filed on (cid:40)arch 12(cid:11) 201(cid:24)).(cid:9)
Employment Agreement bet(cid:76)een Amcor Limited and (cid:40)ichael (cid:53)ac(cid:64)a(cid:11) dated as of
February 24(cid:11) 2017 (incorporated by reference to E(cid:77)hibit 10.24 to Amcor plc(cid:6)s
Form 10(cid:12)(cid:38) filed on August 24(cid:11) 2021).(cid:9)
(cid:47)hree(cid:12)(cid:52)ear Syndicated Facility Agreement(cid:11) dated as of April 26(cid:11) 2022(cid:11) by and
among(cid:11) Amcor plc(cid:11) Amcor (cid:43)ty Ltd(cid:11) Amcor Finance ((cid:48)SA)(cid:11) Inc.(cid:11) Amcor (cid:48)(cid:38)
Finance plc and Amcor Fle(cid:77)ibles (cid:41)orth America(cid:11) Inc.(cid:11) the lenders party thereto
and (cid:37)(cid:43)(cid:40)organ Chase Ban(cid:64)(cid:11) (cid:41).A.(cid:11) as administrative agent and foreign
administrative agent (incorporated herein by reference to E(cid:77)hibit 10.1 to Amcor
plc(cid:6)s Current (cid:45)eport on Form 8(cid:12)(cid:38) filed on April 28(cid:11) 2022).
Five(cid:12)(cid:52)ear Syndicated Facility Agreement(cid:11) dated as of April 26(cid:11) 2022(cid:11) by and
among(cid:11) Amcor plc(cid:11) Amcor (cid:43)ty Ltd(cid:11) Amcor Finance ((cid:48)SA)(cid:11) Inc.(cid:11) Amcor (cid:48)(cid:38)
Finance plc and Amcor Fle(cid:77)ibles (cid:41)orth America(cid:11) Inc.(cid:11) the lenders party thereto
and (cid:37)(cid:43)(cid:40)organ Chase Ban(cid:64)(cid:11) (cid:41).A.(cid:11) as administrative agent and foreign
administrative agent (incorporated herein by reference to E(cid:77)hibit 10.2 to Amcor
plc(cid:6)s Current (cid:45)eport on Form 8(cid:12)(cid:38) filed on April 28(cid:11) 2022).
Incorporated by (cid:45)eference
Incorporated by (cid:45)eference
Incorporated by (cid:45)eference
Incorporated by (cid:45)eference
Incorporated by (cid:45)eference
Incorporated by (cid:45)eference
4 .16
(cid:31)escription of Securities of the (cid:45)egistrant.
Filed (cid:35)ere(cid:76)ith
21 .1
Subsidiaries of Amcor plc.
22
23
31 .1
31 .2
Subsidiary (cid:34)uarantors and Issuers of (cid:34)uaranteed Securities.
Consent of (cid:43)rice(cid:76)aterhouseCoopers A(cid:34) as auditors for the financial statements of
Amcor plc.
Chief E(cid:77)ecutive Officer Certification required by (cid:45)ules 13a(cid:12)14 and 15d(cid:12)14 under
the Securities E(cid:77)change Act of 1(cid:24)34(cid:11) as amended.
Chief Financial Officer Certification required by (cid:45)ules 13a(cid:12)14 and 15d(cid:12)14 under
the Securities E(cid:77)change Act of 1(cid:24)34(cid:11) as amended.
32
101
104
Certification of Chief E(cid:77)ecutive Officer and Chief Financial Officer pursuant to
18 (cid:48).S.C. Section 1350(cid:11) as adopted pursuant to Section (cid:24)06 of Sarbanes O(cid:77)ley
Act of 2002.
Inline (cid:51)B(cid:45)L Interactive data files (cid:84) (cid:47)he (cid:51)B(cid:45)L Instance (cid:31)ocument does not
appear in the Interactive (cid:31)ata File because its (cid:51)B(cid:45)L tags are embedded (cid:76)ithin the
Inline (cid:51)B(cid:45)L document.
Cover (cid:43)age Interactive (cid:31)ata File (formatted as Inline (cid:51)B(cid:45)L and contained in
E(cid:77)hibit 101).
Incorporated by (cid:45)eference
(cid:9) (cid:47)his e(cid:77)hibit is a management contract or compensatory plan or arrangement.
Item 1(cid:20)(cid:12) - Form 10-(cid:35) Summary
(cid:41)one.
Filed (cid:35)ere(cid:76)ith
Filed (cid:35)ere(cid:76)ith
Filed (cid:35)ere(cid:76)ith
Filed (cid:35)ere(cid:76)ith
Filed (cid:35)ere(cid:76)ith
Furnished (cid:35)ere(cid:76)ith
Filed Electronically
Filed Electronically
111
112
Amcor Annual Report 2022
E(cid:74)hibit
4 .(cid:24)
Form of 1.125(cid:4) (cid:34)uaranteed Senior (cid:41)ote (cid:31)ue 2027 (incorporated by reference to
E(cid:77)hibit 4.2 on Amcor plc(cid:89)s Current (cid:45)eport on Form 8(cid:12)(cid:38) filed on (cid:37)une 23(cid:11) 2020).
Incorporated by (cid:45)eference
Description
Form of Filing
4 .10
4 .11
4 .12
4 .13
4 .14
4 .15
4 .17
4 .18
4 .1(cid:24)
4 .20
Indenture(cid:11) dated as of (cid:37)une 13(cid:11) 201(cid:24)(cid:11) by and among AF(cid:48)I(cid:11) as issuer(cid:11) Amcor plc(cid:11)
Amcor Limited(cid:11) Bemis(cid:11) Amcor (cid:48)(cid:38) Finance plc and (cid:31)eutsche Ban(cid:64) (cid:47)rust Company
Americas(cid:11) as trustee (incorporated by reference to E(cid:77)hibit 10.4 on Amcor plc(cid:89)s
Current (cid:45)eport on Form 8(cid:12)(cid:38) filed on (cid:37)une 17(cid:11) 201(cid:24)).
Indenture(cid:11) dated as of (cid:37)une 1(cid:24)(cid:11) 2020(cid:11) by and among Bemis(cid:11) as issuer(cid:11) Amcor plc(cid:11)
Amcor Finance ((cid:48)SA)(cid:11) Inc.(cid:11) Amcor (cid:48)(cid:38) Finance plc(cid:11) Amcor (cid:43)ty Ltd and (cid:31)eutsche
Ban(cid:64) (cid:47)rust Company Americas(cid:11) the trustee (incorporated by reference to E(cid:77)hibit
4.1 on Amcor plc(cid:89)s Current (cid:45)eport on Form 8(cid:12)(cid:38) filed on (cid:37)une 1(cid:24)(cid:11) 2020).
Indenture(cid:11) dated as of (cid:37)une 23(cid:11) 2020(cid:11) by and among Amcor (cid:48)(cid:38) Finance plc(cid:11) as
issuer(cid:11) Amcor plc(cid:11) Amcor Finance ((cid:48)SA)(cid:11) Inc.(cid:11) Amcor (cid:43)ty Ltd(cid:11) Bemis Company(cid:11)
Inc. and (cid:31)eutsche Ban(cid:64) (cid:47)rust Company Americas(cid:11) the trustee (incorporated by
reference to E(cid:77)hibit 4.1 on Amcor plc(cid:89)s Current (cid:45)eport on Form 8(cid:12)(cid:38) filed on (cid:37)une
23(cid:11) 2020).
(cid:45)egistration (cid:45)ights Agreement(cid:11) dated as of (cid:37)une 13(cid:11) 201(cid:24)(cid:11) by and among Bemis(cid:11)
Amcor plc(cid:11) Amcor Limited(cid:11) AF(cid:48)I(cid:11) Amcor (cid:48)(cid:38) Finance plc and the (cid:31)ealer
(cid:40)anagers(cid:11) relating to the Bemis(cid:89) 3.100(cid:4) 2026 (cid:41)otes (incorporated by reference to
E(cid:77)hibit 10.6 on Amcor plc(cid:89)s Current (cid:45)eport on Form 8(cid:12)(cid:38) filed on (cid:37)une 17(cid:11) 201(cid:24)).
(cid:45)egistration (cid:45)ights Agreement(cid:11) dated as of (cid:37)une 13(cid:11) 201(cid:24)(cid:11) by and among AF(cid:48)I(cid:11)
Amcor plc(cid:11) Amcor Limited(cid:11) Bemis(cid:11) Amcor (cid:48)(cid:38) Finance plc and the (cid:31)ealer
(cid:40)anagers(cid:11) relating to the Amcor(cid:89)s 3.625(cid:4) 2026 (cid:41)otes (incorporated by
reference to E(cid:77)hibit 10.7 on Amcor plc(cid:89)s Current (cid:45)eport on Form 8(cid:12)(cid:38) filed on
(cid:37)une 17(cid:11) 201(cid:24)).
(cid:45)egistration (cid:45)ights Agreement(cid:11) dated as of (cid:37)une 13(cid:11) 201(cid:24)(cid:11) by and among AF(cid:48)I(cid:11)
Amcor plc(cid:11) Amcor Limited(cid:11) Bemis(cid:11) Amcor (cid:48)(cid:38) Finance plc and the (cid:31)ealer
(cid:40)anagers(cid:11) relating to the Amcor(cid:89)s 4.500(cid:4) 2028 (cid:41)otes (incorporated by
reference to E(cid:77)hibit 10.8 on Amcor plc(cid:89)s Current (cid:45)eport on Form 8(cid:12)(cid:38) filed on
(cid:37)une 17(cid:11) 201(cid:24)).
Incorporated by (cid:45)eference
Incorporated by (cid:45)eference
Incorporated by (cid:45)eference
Incorporated by (cid:45)eference
Incorporated by (cid:45)eference
Incorporated by (cid:45)eference
Form of 2.6(cid:24)0(cid:4) (cid:34)uaranteed Senior (cid:41)ote (cid:31)ue 2031 (incorporated by reference to
E(cid:77)hibit 4.3 on Amcor plc(cid:6)s Current (cid:45)eport on Form 8(cid:12)(cid:38) filed on (cid:40)ay 25(cid:11) 2021).
Incorporated by (cid:45)eference
Form of 4.000(cid:4) (cid:34)uaranteed Senior (cid:41)ote due 2025 (incorporated by reference to
E(cid:77)hibit 4.3 on Amcor plc(cid:6)s Current (cid:45)eport on Form 8(cid:12)(cid:38) filed on (cid:40)ay 17(cid:11) 2022).
Incorporated by (cid:45)eference
First Supplemental Indenture(cid:11) dated as of (cid:37)une 30(cid:11) 2022(cid:11) among Amcor Finance
((cid:48)SA)(cid:11) Inc.(cid:11) Amcor Fle(cid:77)ibles (cid:41)orth America(cid:11) Inc. and (cid:31)eutsche Ban(cid:64) (cid:47)rust
Company Americas (incorporated by reference to E(cid:77)hibit 4.7 on Amcor plc(cid:6)s
Current (cid:45)eport on Form 8(cid:12)(cid:38) filed on (cid:37)uly 1(cid:11) 2022).
Second Supplemental Indenture(cid:11) dated as of (cid:37)une 30(cid:11) 2022(cid:11) among Amcor Finance
((cid:48)SA)(cid:11) Inc.(cid:11) Amcor Fle(cid:77)ibles (cid:41)orth America(cid:11) Inc. and (cid:31)eutsche Ban(cid:64) (cid:47)rust
Company Americas (incorporated by reference to E(cid:77)hibit 4.6 on Amcor plc(cid:6)s
Current (cid:45)eport on Form 8(cid:12)(cid:38) filed on (cid:37)uly 1(cid:11) 2022).
Incorporated by (cid:45)eference
Incorporated by (cid:45)eference
Amcor plc 201(cid:24) Omnibus Incentive Share (cid:43)lan (incorporated by reference to
10 .1
E(cid:77)hibit (cid:24)(cid:24).1 to Amcor plc(cid:89)s (cid:45)egistration Statement on Form S(cid:12)8 filed on (cid:37)uly 22(cid:11)
Incorporated by (cid:45)eference
201(cid:24)).(cid:9)
201(cid:24)).(cid:9)
201(cid:24)).(cid:9)
10 .2
10 .3
10 .4
Amcor Limited 2016(cid:14)17 Long (cid:47)erm Incentive (cid:43)lan (incorporated by reference to
E(cid:77)hibit (cid:24)(cid:24).3 to Amcor plc(cid:89)s (cid:45)egistration Statement on Form S(cid:12)8 filed on (cid:37)uly 22(cid:11)
Amcor Limited 2017(cid:14)18 Long (cid:47)erm Incentive (cid:43)lan (incorporated by reference to
E(cid:77)hibit (cid:24)(cid:24).4 to Amcor plc(cid:89)s (cid:45)egistration Statement on Form S(cid:12)8 filed on (cid:37)uly 22(cid:11)
Incorporated by (cid:45)eference
Amcor (cid:45)igid (cid:43)lastics (cid:31)eferred Compensation (cid:43)lan(cid:11) as amended by that certain
First Amendment(cid:11) dated (cid:31)ecember 11(cid:11) 2014(cid:11) that certain Second Amendment(cid:11)
dated (cid:31)ecember 10(cid:11) 2018 and that certain (cid:47)hird Amendment(cid:11) dated (cid:31)ecember 16(cid:11)
201(cid:24) (incorporated by reference to E(cid:77)hibit 10.8 to Amcor plc(cid:6)s Form 10(cid:12)(cid:38) filed
on August 27(cid:11) 2020).(cid:9)
Incorporated by (cid:45)eference
10 .5
Employment Agreement bet(cid:76)een Amcor Limited and (cid:45)onald (cid:31)elia(cid:11) dated as of
(cid:37)anuary 21(cid:11) 2015 (incorporated by reference to E(cid:77)hibit 10.3 to Amcor plc(cid:89)s
(cid:45)egistration Statement on Form S(cid:12)4 filed on (cid:40)arch 12(cid:11) 201(cid:24)).(cid:9)
Incorporated by (cid:45)eference
Balance at
Beginning of the
Additions
Charged to
Year ended June 30,
Year (1)
Profit and Loss
Write-offs
2022
2021
2020
$
28 $
42
34
2 $
(4)
5
(3) $
(11)
(1)
Foreign
Currency
Impact and
Other (2)
Balance at End
of the Year
(2) $
1
(3)
25
28
35
(1) Beginning balance for fiscal year 2021 includes $7 million addition due to the adoption of ASC 326 ("CECL").
(2) Foreign Currency Impact and Other includes reserve accruals related to acquisitions.
Form 10-K
113
(cid:43)ursuant to the requirements of Section 13 or 15(d) of the Securities E(cid:77)change Act of 1(cid:24)34(cid:11) the (cid:45)egistrant has duly
caused this report to be signed on its behalf by the undersigned(cid:11) thereunto duly authori(cid:79)ed.
Reserves for Doubtful Accounts, Sales Returns, Discounts, and Allowances:
Signatures
Schedule II - Valuation and Qualifying Accounts and Reserves
(in millions)
A(cid:40)CO(cid:45) (cid:43)LC
By (cid:14)s(cid:14) (cid:40)ichael Casamento
By (cid:14)s(cid:14) (cid:37)ulie Sorrells
(cid:40)ichael Casamento(cid:11) E(cid:77)ecutive (cid:49)ice (cid:43)resident and
Chief Financial Officer ((cid:43)rincipal Financial Officer)
(cid:37)ulie Sorrells(cid:11) (cid:49)ice (cid:43)resident (cid:5) Corporate Controller
((cid:43)rincipal Accounting Officer)
August 18(cid:11) 2022
August 18(cid:11) 2022
(cid:43)ursuant to the requirements of the Securities E(cid:77)change Act of 1(cid:24)34(cid:11) this report has been signed belo(cid:76) by the
follo(cid:76)ing persons on behalf of the (cid:45)egistrant and in the capacities and on the dates indicated.
(cid:14)s(cid:14) (cid:40)ichael Casamento
(cid:40)ichael Casamento(cid:11) E(cid:77)ecutive (cid:49)ice (cid:43)resident and
Chief Financial Officer ((cid:43)rincipal Financial Officer)
(cid:14)s(cid:14) (cid:37)ulie Sorrells
(cid:37)ulie Sorrells(cid:11) (cid:49)ice (cid:43)resident (cid:5) Corporate Controller
((cid:43)rincipal Accounting Officer)
August 18(cid:11) 2022
August 18(cid:11) 2022
(cid:14)s(cid:14) (cid:45)onald (cid:31)elia
(cid:45)onald (cid:31)elia(cid:11) (cid:40)anaging (cid:31)irector and Chief
E(cid:77)ecutive Officer
August 18(cid:11) 2022
(cid:14)s(cid:14) (cid:34)raeme Liebelt
(cid:34)raeme Liebelt(cid:11) (cid:31)irector and Chairman
August 18(cid:11) 2022
(cid:14)s(cid:14) (cid:41)icholas ((cid:47)om) Long
(cid:41)icholas ((cid:47)om) Long(cid:11) (cid:31)irector
August 18(cid:11) 2022
(cid:14)s(cid:14) Arun (cid:41)ayar
Arun (cid:41)ayar(cid:11) (cid:31)irector
August 18(cid:11) 2022
(cid:14)s(cid:14) Achal Agar(cid:76)al
Achal Agar(cid:76)al(cid:11) (cid:31)irector
August 18(cid:11) 2022
(cid:14)s(cid:14) Susan Carter
Susan Carter(cid:11) (cid:31)irector
August 18(cid:11) 2022
(cid:14)s(cid:14) Armin (cid:40)eyer
Armin (cid:40)eyer(cid:11) (cid:31)irector and (cid:31)eputy Chairman
August 18(cid:11) 2022
(cid:14)s(cid:14) Andrea Bertone
Andrea Bertone(cid:11) (cid:31)irector
August 18(cid:11) 2022
(cid:14)s(cid:14) (cid:38)aren (cid:34)uerra
(cid:38)aren (cid:34)uerra(cid:11) (cid:31)irector
August 18(cid:11) 2022
(cid:14)s(cid:14) (cid:37)eremy Sutcliffe
(cid:37)eremy Sutcliffe(cid:11) (cid:31)irector
August 18(cid:11) 2022
(cid:14)s(cid:14) (cid:31)avid S(cid:79)c(cid:79)upa(cid:64)
(cid:31)avid S(cid:79)c(cid:79)upa(cid:64)(cid:11) (cid:31)irector
August 18(cid:11) 2022
113
Amcor Annual Report 2022
114
(cid:43)ursuant to the requirements of Section 13 or 15(d) of the Securities E(cid:77)change Act of 1(cid:24)34(cid:11) the (cid:45)egistrant has duly
caused this report to be signed on its behalf by the undersigned(cid:11) thereunto duly authori(cid:79)ed.
Reserves for Doubtful Accounts, Sales Returns, Discounts, and Allowances:
Signatures
Schedule II - Valuation and Qualifying Accounts and Reserves
(in millions)
113
Form 10-K
114
Year ended June 30,
Balance at
Beginning of the
Year (1)
Additions
Charged to
Profit and Loss
Write-offs
Foreign
Currency
Impact and
Other (2)
Balance at End
of the Year
2022
2021
2020
$
28 $
42
34
2 $
(4)
5
(3) $
(11)
(1)
(2) $
1
(3)
25
28
35
(1) Beginning balance for fiscal year 2021 includes $7 million addition due to the adoption of ASC 326 ("CECL").
(2) Foreign Currency Impact and Other includes reserve accruals related to acquisitions.
A(cid:40)CO(cid:45) (cid:43)LC
By (cid:14)s(cid:14) (cid:40)ichael Casamento
By (cid:14)s(cid:14) (cid:37)ulie Sorrells
(cid:40)ichael Casamento(cid:11) E(cid:77)ecutive (cid:49)ice (cid:43)resident and
Chief Financial Officer ((cid:43)rincipal Financial Officer)
(cid:37)ulie Sorrells(cid:11) (cid:49)ice (cid:43)resident (cid:5) Corporate Controller
((cid:43)rincipal Accounting Officer)
August 18(cid:11) 2022
August 18(cid:11) 2022
(cid:43)ursuant to the requirements of the Securities E(cid:77)change Act of 1(cid:24)34(cid:11) this report has been signed belo(cid:76) by the
follo(cid:76)ing persons on behalf of the (cid:45)egistrant and in the capacities and on the dates indicated.
(cid:14)s(cid:14) (cid:40)ichael Casamento
(cid:14)s(cid:14) (cid:37)ulie Sorrells
(cid:40)ichael Casamento(cid:11) E(cid:77)ecutive (cid:49)ice (cid:43)resident and
Chief Financial Officer ((cid:43)rincipal Financial Officer)
(cid:37)ulie Sorrells(cid:11) (cid:49)ice (cid:43)resident (cid:5) Corporate Controller
((cid:43)rincipal Accounting Officer)
(cid:45)onald (cid:31)elia(cid:11) (cid:40)anaging (cid:31)irector and Chief
Armin (cid:40)eyer(cid:11) (cid:31)irector and (cid:31)eputy Chairman
(cid:34)raeme Liebelt(cid:11) (cid:31)irector and Chairman
August 18(cid:11) 2022
(cid:14)s(cid:14) (cid:45)onald (cid:31)elia
E(cid:77)ecutive Officer
August 18(cid:11) 2022
(cid:14)s(cid:14) (cid:34)raeme Liebelt
August 18(cid:11) 2022
(cid:14)s(cid:14) (cid:41)icholas ((cid:47)om) Long
(cid:41)icholas ((cid:47)om) Long(cid:11) (cid:31)irector
August 18(cid:11) 2022
(cid:14)s(cid:14) Arun (cid:41)ayar
Arun (cid:41)ayar(cid:11) (cid:31)irector
August 18(cid:11) 2022
(cid:14)s(cid:14) Achal Agar(cid:76)al
Achal Agar(cid:76)al(cid:11) (cid:31)irector
August 18(cid:11) 2022
(cid:14)s(cid:14) Susan Carter
Susan Carter(cid:11) (cid:31)irector
August 18(cid:11) 2022
August 18(cid:11) 2022
(cid:14)s(cid:14) Armin (cid:40)eyer
August 18(cid:11) 2022
(cid:14)s(cid:14) Andrea Bertone
Andrea Bertone(cid:11) (cid:31)irector
August 18(cid:11) 2022
(cid:14)s(cid:14) (cid:38)aren (cid:34)uerra
(cid:38)aren (cid:34)uerra(cid:11) (cid:31)irector
August 18(cid:11) 2022
(cid:14)s(cid:14) (cid:37)eremy Sutcliffe
(cid:37)eremy Sutcliffe(cid:11) (cid:31)irector
August 18(cid:11) 2022
(cid:14)s(cid:14) (cid:31)avid S(cid:79)c(cid:79)upa(cid:64)
(cid:31)avid S(cid:79)c(cid:79)upa(cid:64)(cid:11) (cid:31)irector
August 18(cid:11) 2022
113
114
Amcor Annual Report 2022
Other information
17
Other
Information
Amcor Annual Report 2022
Other information
18
Cautionary Statement
Regarding Forward
-Looking Statements
This document contains certain
statements that are “forward-
looking statements” within the
meaning of the safe harbor
provisions of the U.S. Private
Securities Litigation Reform Act of
1995. Forward-looking statements
are generally identified with words
like “believe,” “expect,” “target,”
“project,” “may,” “could,” “would,”
“approximately,” “possible,” “will,”
“should,” “intend,” “plan,” “anticipate,”
"commit," “estimate,” “potential,”
"ambitions," “outlook,” or “continue,”
the negative of these words,
other terms of similar meaning,
or the use of future dates. Such
statements are based on the current
expectations of the management
of Amcor and are qualified by the
inherent risks and uncertainties
surrounding future expectations
generally. Actual results could differ
materially from those currently
anticipated due to a number of
risks and uncertainties. None of
Amcor or any of its respective
directors, executive officers, or
advisors provide any representation,
assurance or guarantee that the
occurrence of the events expressed
or implied in any forward-looking
statements will actually occur.
Risks and uncertainties that could
cause actual results to differ from
expectations include, but are not
limited to: changes in consumer
demand patterns and customer
requirements; the loss of key
customers, a reduction in production
requirements of key customers;
significant competition in the
industries and regions in which
Amcor operates; failure by Amcor
to expand its business; challenging
current and future global economic
conditions, including inflation and
supply chain disruptions; impact of
operating internationally, including
negative impacts from the Russia-
Ukraine conflict and the ability
to sell assets in Russia; price
fluctuations or shortages in the
availability of raw materials, energy,
and other inputs; disruptions to
production, supply, and commercial
risks, which may be exacerbated
in times of economic volatility;
global health outbreaks, including
COVID-19; an inability to attract
and retain key personnel; costs and
liabilities related to current and
future environment, health, and
safety laws and regulations; labor
disputes; risks related to climate
change; failures or disruptions in
information technology systems;
cybersecurity risks; a significant
increase in indebtedness or a
downgrade in the credit rating;
foreign exchange rate risk; rising
interest rates; a significant write-
down of goodwill and/or other
intangible assets; failure to maintain
an effective system of internal
control over financial reporting;
inability of the Company’s insurance
policies to provide adequate
protections; challenges to or
the loss of intellectual property
rights; litigation, including product
liability claims; increasing scrutiny
and changing expectations with
respect to Amcor Environmental,
Social and Governance policies
resulting in increased costs;
changing government regulations
in environmental, health, and safety
matters; changes in tax laws or
changes in our geographic mix
of earnings; and other risks and
uncertainties identified from time
to time in Amcor’s filings with
the U.S. Securities and Exchange
Commission (the “SEC”), including
without limitation, those described
under Item 1A. “Risk Factors” of
Amcor’s annual report on Form 10-K
for the fiscal year ended June 30,
2022 and any subsequent quarterly
reports on Form 10-Q. You can
obtain copies of Amcor’s filings
with the SEC for free at the SEC’s
website (www.sec.gov). Forward-
looking statements included herein
are made only as of the date hereof
and Amcor does not undertake any
obligation to update any forward-
looking statements, or any other
information in this communication,
as a result of new information,
future developments or otherwise,
or to correct any inaccuracies or
omissions in them which become
apparent, except as expressly
required by law. All forward-looking
statements in this communication
are qualified in their entirety by this
cautionary statement.
Amcor Annual Report 2022
Other information
19
- material purchase accounting
adjustments for inventory;
- amortization of acquired intangible
assets from business combination;
- significant property impairments,
net of insurance recovery;
- payments or settlements related
to legal claims;
-
-
impacts from hyperinflation
accounting; and
impacts related to the Russia-
Ukraine conflict.
Amcor also evaluates performance
on a comparable constant currency
basis, which measures financial
results assuming constant foreign
currency exchange rates used for
translation based on the average
rates in effect for the comparable
prior year period. In order to
compute comparable constant
currency results, we multiply or
divide, as appropriate, current-year
U.S. dollar results by the current
year average foreign exchange
rates and then multiply or divide, as
appropriate, those amounts by the
prior-year average foreign exchange
rates. We then adjust for other
items affecting comparability. While
not all inclusive, examples of items
affecting comparability include
the difference between sales or
earnings in the current period and
the prior period related to acquired,
disposed, or ceased operations.
Comparable constant currency net
sales performance also excludes
the impact from passing through
movements in raw material costs.
Management has used and uses
these measures internally for
planning, forecasting and evaluating
the performance of the Company’s
reporting segments and certain
of the measures are used as a
component of Amcor’s Board
of Directors’ measurement of
Amcor’s performance for incentive
compensation purposes. Amcor
believes that these non-GAAP
measures are useful to enable
investors to perform comparisons of
current and historical performance
of the Company. For each of these
non-GAAP financial measures, a
reconciliation to the most directly
comparable U.S. GAAP financial
measure has been provided herein.
These non-GAAP financial measures
should not be construed as an
alternative to results determined
in accordance with U.S. GAAP. The
Company provides guidance on a
non-GAAP basis as we are unable
to predict with reasonable certainty
the ultimate outcome and timing of
certain significant forward-looking
items without unreasonable effort.
These items include but are not
limited to the impact of foreign
exchange translation, restructuring
program costs, asset impairments,
possible gains and losses on the sale
of assets, and certain tax related
events. These items are uncertain,
depend on various factors, and
could have a material impact on
U.S. GAAP earnings and cash flow
measures for the guidance period.
Presentation of
non-GAAP information
Included in this release are measures
of financial performance that
are not calculated in accordance
with U.S. GAAP. These measures
include adjusted EBIT (calculated
as earnings before interest and
tax), adjusted net income, adjusted
earnings per share, adjusted free
cash flow and net debt. In arriving
at these non-GAAP measures, we
exclude items that either have a
non-recurring impact on the income
statement or which, in the judgment
of our management, are items that,
either as a result of their nature or
size, could, were they not singled
out, potentially cause investors to
extrapolate future performance
from an improper base. While not
all inclusive, examples of these
items include:
- material restructuring programs,
including associated costs such
as employee severance, pension
and related benefits, impairment of
property and equipment and other
assets, accelerated depreciation,
termination payments for contracts
and leases, contractual obligations,
and any other qualifying costs
related to the restructuring plan;
- material sales and earnings from
disposed or ceased operations and
any associated profit or loss on sale
of businesses or subsidiaries;
- consummated and identifiable
divestitures agreed to with certain
regulatory agencies as a condition of
approval for those acquisitions;
-
impairments in goodwill and equity
method investments;
- material acquisition compensation
and transaction costs such as due
diligence expenses, professional and
legal fees, and integration costs;
Amcor Annual Report 2022
19
Reconciliation of
non-GAAP measures
20
Reconciliation of non-GAAP measures
Reconciliation of adjusted Earnings before interest, tax, depreciation and amortization (EBITDA), Earnings
before interest and tax (EBIT), Net income, and Earnings per share (EPS)
Twelve months ended June 30, 2021
Twelve months ended June 30, 2022
($ million)
Net income attributable to Amcor
Net income attributable to non-controlling interests
Tax expense
Interest expense, net
Depreciation and amortization
EBIT
939
(cid:20)2
2(cid:25)(cid:20)
139
EBITDA
939
(cid:20)2
2(cid:25)(cid:20)
139
(cid:24)(cid:26)2
Net
Income
EPS (Diluted
US cents)
EBITDA
939
60.2
805
(cid:20)0
EBIT
805
(cid:20)0
Net
Income
EPS (Diluted
US cents)
805
52.9
(cid:22)00
(cid:22)00
135
135
579
EBITDA, EBIT, Net income and EPS
1,923
1,351
939
60.2
1,829
1,250
805
52.9
Material restructuring programs
Net (gain) / loss on disposals1
Material acquisitions and other costs2
Impact of hyperinflation
Property and other losses, net3
Pension settlements
Amortization of acquired intangibles
Russia-Ukraine conflict impacts4
Tax effect of above items
88
(cid:11)(cid:28)(cid:12)
7
19
–
–
–
88
(cid:11)(cid:28)(cid:12)
7
19
–
–
88
(cid:11)(cid:28)(cid:12)
7
19
–
–
5.7
(cid:11)0(cid:17)(cid:25)(cid:12)
0(cid:17)(cid:24)
(cid:20)(cid:17)2
–
–
37
(cid:20)0
4
16
13
8
37
(cid:20)0
4
16
13
8
37
(cid:20)0
4
16
13
8
165
165
(cid:20)0(cid:17)(cid:25)
163
163
–
–
(cid:11)(cid:24)(cid:20)(cid:12)
–
200
200
200
(cid:11)(cid:22)(cid:17)2(cid:12)
(cid:11)(cid:22)2(cid:12)
Adjusted EBITDA, EBIT, Net income and EPS
2,028
1,621
1,158
74.4
2,117
1,701
1,224
Reconciliation of adjusted growth to comparable constant currency growth
% growth - Adjusted EBITDA, EBIT, Net income and EPS
% items affecting comparability5
% currency impact
% comparable constant currency growth
4
–
3
7
5
–
2
7
6
–
2
8
2(cid:17)(cid:24)
0(cid:17)(cid:26)
0(cid:17)(cid:22)
(cid:20)(cid:17)0
0(cid:17)(cid:27)
0(cid:17)(cid:24)
(cid:20)0(cid:17)(cid:26)
(cid:20)(cid:22)(cid:17)2
(cid:11)2(cid:17)(cid:20)(cid:12)
80.5
8
–
3
11
(1) Includes losses on disposal of non-core businesses in fiscal year 2022. Includes $15 million gain realized upon disposal of AMVIG and losses on disposal of other non-core
businesses in fiscal year 2021.
(2) Includes costs associated with the Bemis acquisition.
(3) Property and other losses, net includes property and related business losses primarily associated with the destruction of the Company's Durban, South Africa, facility during general
civil unrest in July 2021, net of insurance recovery.
(4) Russia-Ukraine conflict impacts include approximately $140 million of impairment charges and approximately $60 million of restructuring and related expenses for fiscal year 2022.
(5) Reflects the impact of disposed and ceased operations.
Amcor Annual Report 2022
Reconciliation of
non-GAAP measures
2(cid:20)
Reconciliation of adjusted EBIT by reporting segment
Twelve months ended June 30, 2021
Twelve months ended June 30, 2022
($ million)
Net income attributable to Amcor
Net income attributable to non-controlling interests
Tax expense
Interest expense, net
EBIT
Material restructuring programs
Net (gain) loss / on disposals2
Material acquisition and other costs3
Impact of hyperinflation
Property and other losses, net4
Pension settlements
Russia-Ukraine conflict impacts5
Amortization of acquired intangibles
Adjusted EBIT
Adjusted EBIT / sales %
Flexibles
Rigid
packaging
Other1
Total
Flexibles
Rigid
packaging
Other1
939
(cid:20)2
2(cid:25)(cid:20)
139
Total
805
(cid:20)0
(cid:22)00
135
1,142
253
(44)
1,351
1,101
265
(116)
1,250
(cid:20)2(cid:25)
6
(cid:11)(cid:26)(cid:12)
–
–
–
–
(cid:20)(cid:25)0
1,427
20
(cid:11)(cid:24)(cid:27)(cid:12)
–
2
19
–
–
–
5
(cid:11)(cid:20)(cid:24)(cid:12)
(cid:20)2
–
–
–
–
–
88
(cid:11)(cid:28)(cid:12)
7
19
–
–
–
165
38
(cid:20)0
2
–
9
–
200
158
–
–
–
16
–
3
–
5
(cid:11)(cid:20)(cid:12)
–
2
–
4
5
–
–
37
(cid:20)0
4
16
13
8
200
163
299
(105)
1,621
1,517
289
(105)
1,701
14.2%
10.6%
12.6%
13.6%
8.5%
11.7%
Reconciliation of adjusted growth to comparable constant currency growth
% growth - Adjusted EBIT
% items affecting comparability6
% currency impact
% comparable constant currency growth
6
–
3
9
(4)
–
–
(4)
–
–
–
–
5
–
2
7
(1) Other includes equity in income/(loss) of affiliated companies, net of tax and general corporate expenses.
(2) Includes losses on disposal of non-core businesses in fiscal year 2022. Includes $15 million gain realized upon disposal of AMVIG and losses on disposal of other non-core
businesses in fiscal year 2021.
(3) Includes costs associated with the Bemis acquisition.
(4) Property and other losses, net includes property and related business losses primarily associated with the destruction of the Company's Durban, South Africa, facility during civil
unrest in July 2021, net of insurance recovery.
(5) Russia-Ukraine conflict impacts include approximately $140 million of impairment charges and approximately $60 million of restructuring and related expenses for fiscal year 2022.
(6) Reflects the impact of disposed and ceased operations.
Amcor Annual Report 2022
2(cid:20)
Reconciliation of
non-GAAP measures
22
Reconciliations of adjusted Free Cash Flow
($ million)
Net cash provided from operating activities
Purchase of property, plant and equipment and other intangible assets
Proceeds from sales of property, plant and equipment and other intangible assets
Material transaction and integration related costs
Adjusted Free Cash Flow1
Twelve months ended June 30
2021
1,461
(cid:11)(cid:23)(cid:25)(cid:27)(cid:12)
2(cid:25)
(cid:27)0
1,099
(1) Adjusted Free Cash Flow excludes material transaction and integration related costs because these cash flows are not considered to be directly related to ongoing operations.
($ million)
Adjusted EBITDA
Interest paid, net
Income tax paid
Purchase of property, plant and equipment and other intangible assets
Proceeds from sale of property, plant and equipment and other intangible assets
Movement in working capital
Other
Adjusted Free Cash Flow1
Twelve months ended June 30
2021
2(cid:15)02(cid:27)
(cid:11)(cid:20)(cid:22)(cid:20)(cid:12)
(cid:11)(cid:22)2(cid:20)(cid:12)
(cid:11)(cid:23)(cid:25)(cid:27)(cid:12)
2(cid:25)
2(cid:28)
(cid:11)(cid:25)(cid:23)(cid:12)
1,099
(1) Adjusted Free Cash Flow excludes material transaction and integration related costs because these cash flows are not considered to be directly related to ongoing operations.
2022
(cid:20)(cid:15)(cid:24)2(cid:25)
(cid:11)(cid:24)2(cid:26)(cid:12)
18
49
1,066
2022
2(cid:15)(cid:20)(cid:20)(cid:26)
(cid:11)(cid:20)(cid:20)(cid:28)(cid:12)
(cid:11)2(cid:24)(cid:25)(cid:12)
(cid:11)(cid:24)2(cid:26)(cid:12)
18
(cid:11)(cid:20)(cid:24)(cid:23)(cid:12)
(cid:11)(cid:20)(cid:22)(cid:12)
1,066
Reconciliation of net debt
($ million)
Cash and cash equivalents
Short-term debt
Current portion of long-term debt
Long-term debt excluding current portion
Net debt
June 30, 2021
June 30, 2022
(cid:11)(cid:27)(cid:24)0(cid:12)
98
5
6,186
5,439
(cid:11)(cid:26)(cid:26)(cid:24)(cid:12)
136
14
(cid:25)(cid:15)(cid:22)(cid:23)0
5,715
Amcor Annual Report 2022
Amcor plc
UK Establishment Address:
83 Tower Road North, Warmley, Bristol,
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Registered Office:
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JE4 9WG, Jersey, Channel Islands
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