v3.26.1
Defined Benefit Plans
 12 Months Ended
Jun. 30, 2026
Retirement Benefits [Abstract]  
Defined Benefit Plans Defined Benefit Plans
    The Company sponsors both funded and unfunded defined benefit pension plans that include statutory and mandated benefit provision in various countries as well as voluntary plans. Voluntary plans are generally closed to new joiners. The Company’s principal defined benefit plans are in the United States, Switzerland, United Kingdom, and Germany. The United States plans are closed to new entrants and mostly closed to future accruals, and are funded. The Swiss principal plan is open to new entrants, and is funded. The United Kingdom benefit plans are closed to new entrants and mostly closed to future accruals, and are funded. The German principal plans are closed to new entrants and mostly closed to future accruals, and are unfunded.

    In December 2025, certain defined benefit pension plans in the United States were merged to form the Amcor Combined Pension Plan ("ACPP"). The ACPP was subsequently terminated effective December 31, 2025. Benefits for participants who elected a lump sum distribution were settled through payments made in June 2026. In addition, a bulk annuity transaction with Fidelity & Guaranty Life Insurance Company was completed in June 2026 to secure the pension obligations for the remaining participants.

    As a result of the plan termination and settlement activities, the Company recognized a non-cash pension settlement charge of approximately $9 million during fiscal year 2026. Following completion of the termination and settlement processes, the Company had a remaining pre-tax surplus balance of approximately $20 million as of June 30, 2026. This amount is included in Prepaid expenses and other current assets in the Consolidated Balance Sheets as of June 30, 2026. The Company is currently completing a data reconciliation process, with final cash settlement expected in December 2026.

    In July 2025, the Trustee of the Amcor Holding 2023 UK Pension Plan purchased bulk annuities with Rothesay Life Plc (“Rothesay”) to insure benefits for a subgroup of members’ within the plan. Benefits payable to all members are now covered by an insurance policy with Rothesay or by an insurance policy with Aviva (purchased in 2017). The bulk annuity contracts are held as assets of the relevant section of the Plan.

    During the fourth quarter of fiscal year 2025, the Company contracted with Fidelity & Guaranty Life Insurance Company on a retiree annuity purchase program and transferred $110 million of its pension plan assets and related benefit obligations related to two principal defined benefit plans in the United States. This transaction necessitated a remeasurement of the pension plan assets and obligations and resulted in a non-cash settlement charge of approximately $7 million.

    During the second quarter of fiscal year 2025, payments were made to certain eligible active and terminated vested participants, in one of the Company's closed principal funded defined benefit plans in the United States, who opted to receive a lump-sum payment. The settlement reduced both the projected benefit obligation and fair value of plan assets of the plan by $27 million and resulted in a non-cash settlement charge of approximately $2 million.


    Net periodic benefit cost for benefit plans includes the following components:
Years ended June 30,
($ in millions)202620252024
Service cost$26 $19 $18 
Interest cost88 58 50 
Expected return on plan assets(97)(61)(57)
Amortization of net loss3 7 3 
Amortization of prior service credit(2)(3)(4)
Curtailment credit— — (1)
Settlement costs 13 12 3 
Net periodic benefit cost$31 $32 $12 
    Changes in benefit obligations and plan assets were as follows:
($ in millions)June 30, 2026June 30, 2025
Change in benefit obligation:
Benefit obligation at the beginning of the year$1,988 $1,227 
Service cost26 19 
Interest cost88 58 
Participant contributions7 6 
Actuarial (gain)/loss16 (31)
Settlements(263)(157)
Benefits paid(107)(77)
Administrative expenses(9)(5)
Acquisitions and divestitures3 860 
Other(3)— 
Foreign currency translation(37)88 
Benefit obligation at the end of the year$1,709 $1,988 
Accumulated benefit obligation at the end of the year$1,671 $1,942 
Change in plan assets:
Fair value of plan assets at the beginning of the year$1,684 $1,033 
Actual return on plan assets97 17 
Employer contributions80 51 
Participant contributions7 6 
Benefits paid(107)(77)
Settlements(263)(157)
Administrative expenses(9)(5)
Acquisitions and divestitures9 739 
Foreign currency translation(32)77 
Fair value of plan assets at the end of the year$1,467 $1,684 
Funded status at the end of the year$(243)$(304)

    During fiscal year 2026, actuarial losses were primarily due to higher inflation assumptions in the United Kingdom and Eurozone, lower discount rates for plans in Switzerland and the United States, and updates to mortality and other assumptions. These losses were partially offset by actuarial gains resulting from higher discount rates in the Eurozone and certain plans in the United Kingdom and lower salary increase assumptions for certain plans in the European Union. The weighted-average discount rate for the Company's pension plans decreased by 0.1% during fiscal year 2026, compared with an increase of 0.5% during fiscal year 2025. Favorable asset returns, particularly in Switzerland and the United States, together with employer contributions, contributed to the improvement in the funded status of the Company's defined benefit plans during fiscal year 2026. During fiscal year 2025, the Merger resulted in an increase of the net liability by $123 million at April 30, 2025, partially offset by a decrease of approximately $2 million relating to the divestiture of Bericap and a non-core business.

    The following table provides information for defined benefit plans with a projected benefit obligation in excess of plan assets:
($ in millions)June 30, 2026June 30, 2025
Projected benefit obligation$1,188 $1,298 
Fair value of plan assets868 934 
    The following table provides information for defined benefit plans with an accumulated benefit obligation in excess of plan assets:
($ in millions)June 30, 2026June 30, 2025
Accumulated benefit obligation$1,163 $1,261 
Fair value of plan assets862 920 

    The following table provides information as to how the funded status is recognized in the consolidated balance sheets:
($ in millions)June 30, 2026June 30, 2025
Current assets - Prepaid expenses and other current assets$20 $— 
Non-current assets - Employee benefit assets57 60 
Current liabilities - Other current liabilities(11)(12)
Non-current liabilities - Employee benefit obligations(309)(352)
Funded status$(243)$(304)

    Amounts recognized in other comprehensive (income)/loss are as follows:
Years ended June 30,
($ in millions)202620252024
Changes in plan assets and benefit obligations recognized in other comprehensive (income)/loss:
Net actuarial loss occurring during the year$16 $12 $57 
Net prior service loss occurring during the year— 1 1 
Amortization of actuarial loss(3)(7)(3)
Gain recognized due to settlement/curtailment(13)(12)(2)
Amortization of prior service credit2 3 4 
Acquisition related loss1 — — 
Tax effect(2)1 (12)
Total recognized in other comprehensive (income)/loss$1 $(2)$45 
    
    
    Amounts in AOCI that have not yet been recognized as net periodic benefit cost are as follows:
June 30,
($ in millions)202620252024
Net prior service credit$(9)$(11)$(13)
Net actuarial loss188 192 181 
Accumulated other comprehensive loss at the end of the year$179 $181 $168 
    
    Weighted-average assumptions used to determine benefit obligations were:
June 30,
202620252024
Discount rate4.6 %4.7 %4.2 %
Rate of compensation increase1.9 %1.9 %1.9 %
    
    Weighted-average assumptions used to determine net periodic benefit cost were:
Years ended June 30,
202620252024
Discount rate4.7 %4.2 %4.3 %
Rate of compensation increase1.9 %1.9 %1.9 %
Expected long-term rate of return on plan assets5.8 %5.2 %5.5 %

    Where funded, the Company and, in some countries, the employees make cash contributions into the pension funds. In the case of unfunded plans, the Company is responsible for benefit payments as they fall due. Plan funding requirements are generally determined by local regulation and/or best practice and differ between countries. The local statutory funding positions are not necessarily consistent with the funded status disclosed on the consolidated balance sheets. For any funded plans in deficit (as measured under local country guidelines), the Company agrees with the trustees and plan fiduciaries to undertake suitable funding programs to provide additional contributions over time in accordance with local country requirements. Contributions to the Company's defined benefit pension plans, not including unfunded plans, are expected to be $65.1 million during the next 12 months.

    The following benefit payments for the succeeding five years and thereafter, which reflect expected future service, as appropriate, are expected to be paid for the fiscal years ending June 30:
($ in millions)
2027$105 
2028105 
2029102 
2030110 
2031111 
Thereafter 568 

    The ERISA Benefit Plan Committee in the United States, the Pension Plan Committee in Switzerland, and the Trustees of the pension plans in the United Kingdom establish investment policies, investment strategies, allocation strategies, and investment risk profiles for the Company's pension plan assets and are required to consult with the Company on changes to their investment policy. The German plans are unfunded and liability management is the responsibility of the Board of Directors of the sponsoring entities. A proportion of the German plan liabilities are indemnified under a Contractual Trust Agreement, which is administered by an independent third party. In developing the expected long-term rate of return on plan assets at each measurement date, the Company considers the plan assets' historical returns, asset allocations, and the anticipated future economic environment and long-term performance of the asset classes. While appropriate consideration is given to recent and historical investment performance, the assumption represents management's best estimate of the long-term prospective return.

    The pension plan assets measured at fair value were as follows:
June 30, 2026
($ in millions)Level 1Level 2Level 3Total
Equity securities$152 $6 $— $158 
Debt securities (1)(65)719 — 654 
Real estate9 66 99 174 
Insurance contracts— — 407 407 
Cash and cash equivalents24 7 — 31 
Other8 28 7 43 
Total$128 $826 $513 $1,467 
(1)This category includes repurchase agreement ("repo") positions utilized within certain pension schemes' liability-driven investment ("LDI") strategies. Under a repo, cash is borrowed from a counterparty against bond collateral and invested in additional fixed income assets, resulting in the recognition of both an asset (the acquired securities) and a corresponding repo liability representing the obligation to repay the borrowing. Repo arrangements are used to efficiently manage liquidity and obtain exposure to fixed-income assets. Securities subject to repo arrangements are classified as Level 2 in the fair value hierarchy. The related repo liabilities are classified as Level 1, reflecting valuation based on quoted market prices in active markets.
June 30, 2025
($ in millions)Level 1Level 2Level 3Total
Equity securities$133 $124 $— $257 
Debt securities365 256 103 724 
Real estate8 87 54 149 
Insurance contracts— — 308 308 
Cash and cash equivalents187 17 — 204 
Other7 27 8 42 
Total$700 $511 $473 $1,684 

Equity securities: Valued primarily at the closing prices reported in the active market in which the individual securities are traded (Level 1); or based on significant observable inputs such as fund values provided by the independent fund administrators (Level 2).

Debt securities: Consists of government and corporate debt securities, valued at the closing prices reported in the active market in which the individual securities are traded (Level 1); or based on observable inputs such as fund values provided by independent fund administrators, pricing of similar agency issues, reported trades, broker/dealer quotes, issuer spread, live trading feeds from several vendors, and benchmark yields (Level 2); or based on a cashflow analysis of the discounted value of the promised principal at maturity less an estimate of defaults (Level 3). Inputs may be prioritized differently at certain times based on market conditions.

Real estate: Valued at the closing prices reported in the active market in which the individual securities are traded (Level 1); or based on observable inputs such as fund values provided by independent fund administrators (Level 2); or based on independent property valuations using the income approach, comparable sales, and market trends (Level 3).

Insurance contracts: Valued based on the present value of the underlying insured liabilities (Level 3).

Cash and cash equivalents: Consists of cash on deposit with brokers and short-term money market funds, shown 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, which approximates fair value.

Other:

Level 1: Derivatives valued at the closing prices reported in the active market.

Level 2: Assets held in diversified growth funds, pooled funds, financing funds, and derivatives, where the values of the assets are determined by the investment managers or other independent third parties, based on observable inputs.

Level 3: Indemnified plan assets and pooled funds (equity, credit, macro-orientated, multi-strategy, cash, and other). The values of indemnified plan assets are determined based on the value of the liabilities that the assets cover. The value of the pooled funds is calculated by the investment managers based on the net asset values of the underlying portfolios.

    The following table sets forth a summary of changes in the value of the Company's Level 3 plan assets:
($ in millions)
Balance as of June 30, 2025$473 
Actual return on plan assets1 
Purchases, sales, and settlements36 
Transfer into Level 318 
Foreign currency translation(15)
Balance as of June 30, 2026$513