v3.26.1
Derivative Instruments
 12 Months Ended
Jun. 30, 2026
Derivative Instruments and Hedging Activities Disclosure [Abstract]  
Derivative Instruments Derivative Instruments
    The Company periodically uses derivatives and other financial instruments to hedge exposures to interest rates, commodity prices, and currency risks. The Company does not hold or issue derivative instruments for speculative or trading purposes. For hedges that meet hedge accounting criteria, the Company, at inception, formally designates and documents the instruments as a fair value hedge or a cash flow hedge of a specific underlying exposure. On an ongoing basis, the Company assesses and documents that its designated hedges have been and are expected to continue to be highly effective.

Interest Rate Risk

    The Company's policy is to manage exposure to interest rate risk by maintaining a mixture of fixed-rate and variable-rate debt, monitoring global interest rates, and, where appropriate, hedging floating interest rate exposure or debt at fixed interest rates through various interest rate derivative instruments, including, but not limited to, interest rate swaps, and interest rate locks. For interest rate swaps that are accounted for as fair value hedges, the gains and losses related to the changes in the fair value of the interest rate swaps are included in interest expense and offset changes in the fair value of the hedged portion of the underlying debt that are attributable to the changes in market interest rates. Changes in the fair value of interest rate swaps that have not been designated as hedging instruments are reported in the accompanying consolidated statements of income in other income/(expenses), net.

    On August 5, 2024, the Company entered into an interest rate swap contract for a notional amount of $500 million, which was subsequently downsized to $400 million notional on November 4, 2024. Under the terms of the contract, the Company paid a fixed rate of interest of 4.30% and receives a variable rate of interest, based on compound overnight Secured Overnight Financing Rate ("SOFR"), effective from August 12, 2024, through June 30, 2025, with monthly settlements commencing on September 1, 2024. The interest rate swap contract served as an economic hedge of the SOFR component of the Company's commercial paper issuances. As of June 30, 2026, the Company had no receive-variable/pay-fixed interest rate swaps outstanding. As of June 30, 2025, this $400 million receive-variable/pay-fixed swap matured, and the Company had no other receive-variable/pay-fixed interest rate swaps outstanding. The Company did not apply hedge accounting on these economic hedging instruments.

    As of June 30, 2026, and 2025, the total notional amount of the Company's receive-fixed, pay-variable interest rate swaps was $650 million.

Foreign Currency Risk

    The Company manufactures and sells its products and finances operations in a number of countries throughout the world and, as a result, is exposed to movements in foreign currency exchange rates. The purpose of the Company's foreign currency hedging program is to manage the volatility associated with the changes in exchange rates. To manage this exchange rate risk, the Company utilizes forward contracts and cross currency swaps.

    Forward contracts that qualify for hedge accounting are designated as cash flow hedges of certain forecasted transactions denominated in foreign currencies. The effective portion of the changes in fair value of these instruments is reported in accumulated other comprehensive loss ("AOCI") and reclassified into earnings in the same financial statement line item and in the same period or periods during which the related hedged transactions affect earnings. The ineffective portion is recognized in earnings over the life of the hedging relationship in the same consolidated statements of income line item as the underlying hedged item. Changes in the fair value of forward contracts that have not been designated as hedging instruments are reported in the accompanying consolidated statements of income.

    As of June 30, 2026, and 2025, the notional amount of the outstanding forward contracts was $0.7 billion and $0.6 billion respectively.

    In May 2024, the Company entered into cross currency swap contracts for a total notional amount of $500 million. Under the terms of the contracts, the Company U.S. dollar swapped the notional and periodic interest payments to Swiss francs to manage foreign currency risk. The Company receives a fixed U.S. dollar rate of interest of 5.450% and pays a fixed weighted-average Swiss franc rate of interest of 2.218%. The Company has designated these cross currency swap contracts as a fair value hedge of its $500 million notes, recognizing the components excluded from the hedging relationship in accumulated other comprehensive loss ("AOCI") and reclassifying into earnings through the accrual of the periodic interest settlements on the swaps. During fiscal year 2026, there have not been any changes to these hedging relationships. These contracts mature on May 23, 2029.
    Upon completion of the Merger, the Company assumed legacy Berry cross currency swaps. At acquisition date, certain of these swaps were designated as net investment hedges of both euro and pound sterling foreign operations. The Company designated notional amounts of €925 million and £700 million (pound sterling) swaps as net investment hedges, with the effective movements in fair value of the swaps being recognized in AOCI. In addition, the Company had an outstanding long-term debt of €375 million that was designated as a hedge of the Company's net investment in certain euro-denominated foreign subsidiaries. The Company also assumed an additional notional amount of €700 million cross currency swaps as a result of the Merger which are used as an economic hedge to certain foreign intercompany loans. During fiscal year 2026, the swaps were extended and all mature on June 15, 2027. There have not been any other changes to these hedging relationships in fiscal year 2026.

    As of June 30, 2026 and 2025, the notional amount of outstanding cross currency swaps was $3 billion.

Commodity Risk

    Certain raw materials used in the Company's production processes are subject to price volatility caused by weather, supply conditions, political and economic variables, including tariffs, and other unpredictable factors. The Company's policy is to minimize exposure to price volatility by passing through the commodity price risk to customers, including through the use of fixed price swaps.

    In some cases, the Company purchases, on behalf of customers, fixed price commodity swaps to offset the exposure of price volatility on the underlying sales contracts. These instruments are cash closed out on maturity and the related cost or benefit is passed through to customers. Information about commodity price exposure is derived from supply forecasts submitted by customers and these exposures are hedged by central treasury units. Changes in the fair value of commodity hedges are recognized in AOCI. The cumulative amount of the hedge is recognized in the consolidated statements of income when the forecasted transaction is realized.

    The Company had the following outstanding commodity contracts to hedge forecasted purchases:
June 30, 2026June 30, 2025
CommodityVolumeVolume
Aluminum23,746 tons29,354 tons
Aluminum Premium (1)7,334 tons— 
PET resin560,000 lbs.5,840,909 lbs.
(1)Aluminum Premium represents the regional cost to obtain physical delivery of aluminum and includes shipping, insurance, taxes and freight to a designated offloading harbor in a certain region.
    
    The following table provides the location of derivative instruments in the consolidated balance sheets:
($ in millions)Balance Sheet LocationJune 30, 2026June 30, 2025
Assets
Derivatives in cash flow hedging relationships:
Commodity contractsOther current assets$5 $1 
Forward exchange contractsOther current assets3 6 
Total current derivative contracts8 7 
Total non-current derivative contracts— — 
Total derivative asset contracts$8 $7 
Liabilities
Derivatives in cash flow hedging relationships:
Commodity contractsOther current liabilities$2 $3 
Forward exchange contractsOther current liabilities4 4 
Derivatives in net investment hedge relationships:
Cross currency swapsOther current liabilities233 294 
Derivatives not designated as hedging instruments:
Forward exchange contractsOther current liabilities1 1 
Cross currency swapsOther current liabilities92 114 
Total current derivative contracts332 416 
Derivatives in fair value hedging relationships:
Interest rate swapsOther non-current liabilities60 63 
Cross currency swapsOther non-current liabilities79 89 
Total non-current derivative contracts139 152 
Total derivative liability contracts$471 $568 

    Refer to Note 11, "Fair Value Measurements", for further information about the fair value of the derivative instruments, by level, within the fair value hierarchy.

    Certain derivative financial instruments are subject to master netting arrangements and are eligible for offset. The Company has made an accounting policy election not to offset the fair values of these instruments within the consolidated balance sheets.
    The following tables provide the effects of derivative instruments on AOCI and in the consolidated statements of income:
Location of Gain / (Loss) Reclassified from AOCI into IncomeGain / (Loss) Reclassified from AOCI into Income (Effective Portion)
Years ended June 30,
($ in millions)202620252024
Derivatives in cash flow hedging relationships:
Commodity contractsCost of sales$6 $1 $(2)
Forward exchange contractsNet sales— 1 1 
Treasury locksInterest expense(3)(3)(3)
Total$3 $(1)$(4)

Location of Gain / (Loss) Recognized in the Consolidated Income StatementsGain / (Loss) Recognized in Income for Derivatives not Designated as Hedging Instruments
Years ended June 30,
($ in millions)202620252024
Derivatives not designated as hedging instruments:
Forward exchange contractsOther income/(expenses), net$— $(2)$15 
Interest rate swapsOther income/(expenses), net— — (16)
Cross currency swapsOther income/(expenses), net23 (22)— 
Total$23 $(24)$(1)
.

Location of Gain Recognized in the Consolidated Income StatementsGain Recognized in Income for Derivatives in Fair Value Hedging Relationships
Years ended June 30,
($ in millions)202620252024
Derivatives in fair value hedging relationships:
Interest rate swapsInterest expense$3 $29 $4 
Cross currency swaps (1)Interest expense15 16 2 
Cross currency swapsOther income/(expenses), net6 (55)(8)
Total$24 $(10)$(2)
(1)Represents the gains for amounts excluded from the effectiveness testing.

    
    The changes in AOCI for effective derivatives were as follows:
Years ended June 30,
($ in millions)202620252024
Amounts reclassified into earnings:
Commodity contracts$(6)$(1)$2 
Forward exchange contracts— (1)(1)
Treasury locks3 3 3 
Cross currency swaps(6)— — 
Fair value gains / (losses):
Commodity contracts11 2 1 
Forward exchange contracts(2)(2)1 
Cross currency swaps58 (75)(10)
Tax effect(7)17 (1)
Total$51 $(57)$(5)