Income Taxes (Tables)

12 Months Ended

Jun. 30, 2026

Schedule of Components of Income Before Taxes and Equity in Income (Loss) of Affiliated Companies

The components of income before income taxes and equity in income/(loss) of affiliated companies were as follows:


	Years ended June 30,
($ in millions)	2026		2025		2024
Domestic (UK)	$	37	$	(210)	$	(108)
Foreign	1,245		860		1,015
Total income before income taxes and equity in income/(loss) of affiliated companies	$	1,282	$	650	$	907

Schedule of Income Tax Expense

Income tax expense consisted of the following:


	Years ended June 30,
($ in millions)	2026		2025		2024
Current tax:
Domestic (UK)	$	20	$	1	$	2
Foreign	257		259		198
Total current tax	277		260		200
Deferred tax:
Domestic (UK)	(6)		(17)		18
Foreign	(90)		(108)		(55)
Total deferred tax	(96)		(125)		(37)
Income tax expense	$	181	$	135	$	163

Schedule of Reconciliation of Income Tax Rate

The following is a reconciliation of income tax computed at the United Kingdom statutory tax rate of 25.0%, for fiscal year 2026:


($ in millions)	Year Ended June 30, 2026
Tax expense at UK statutory tax rate	$	320	25.0	%
Foreign tax effects:
United States of America:
Effect of cross-border tax laws	(34)		(2.7)	%
Tax credits	(23)		(1.8)	%
Unified loss rules	(45)		(3.5)	%
Other, net	(11)		(0.8)	%
Australia:
Changes in valuation allowance	(31)		(2.4)	%
Other, net	7		0.6	%
Other foreign jurisdictions, net	23		1.8	%


Other adjustments, net	7		0.4	%
Changes in unrecognized tax benefits, net	(32)		(2.5)	%
Income tax expense	$	181	14.1	%

The following is a reconciliation of income tax computed at the United Kingdom statutory tax rate of 25.0% for fiscal years 2025, and 2024 to income tax expense.


	Years ended June 30,
($ in millions)	2025		2024
Income tax expense at statutory rate	$	163	$	226
Foreign tax rate differential	(3)		(3)

Non-deductible expenses, non-taxable items, net	33		(6)

Change in valuation allowance	(18)		3
Uncertain tax positions, net	(18)		(51)
Other (1)	(22)		(6)
Income tax expense	$	135	$	163

(1)In fiscal year 2025, Other is comprised of adjustments to prior year which resulted in a $15 million benefit, movement in deferred tax positions with a $9 million benefit, effect of foreign currency exchange, changes in tax rates and other individually immaterial items. In fiscal year 2024, Other is comprised of adjustments to prior year provisions, movement in deferred tax positions, including a $15 million benefit from the Swiss Tax Reform, effects of foreign currency exchange rates, including a $14 million benefit from inflation adjustment in Argentina, partially offset by changes in tax rates, and other individually immaterial items.

Schedule of Significant Components of Deferred Tax Assets and Liabilities

Significant components of deferred tax assets and liabilities are as follows:


	June 30,
($ in millions)	2026		2025
Deferred tax assets:
Inventories	$	24	$	17
Accrued employee benefits	92		152
Derivatives and financial instruments	3		20
Provisions	22		32
Net operating loss carryforwards	696		708
Tax credit carryforwards	59		54
Accruals and other	107		64
Total deferred tax assets	1,003		1,047
Valuation allowance	(610)		(664)
Net deferred tax assets	393		383
Deferred tax liabilities:
Property, plant, and equipment	(636)		(821)
Other intangible assets	(1,528)		(1,655)


Undistributed foreign earnings	(110)		(171)
Total deferred tax liabilities	(2,274)		(2,647)
Net deferred tax liability	(1,881)		(2,264)
Balance sheet location:
Deferred tax assets	199		218
Deferred tax liabilities	(2,080)		(2,482)
Net deferred tax liability	$	(1,881)	$	(2,264)

Schedule of Reconciliation of Unrecognized Tax Benefits

A reconciliation of the beginning and ending amount of unrecognized tax benefits for the fiscal years presented is as follows:


	June 30,
($ in millions)	2026		2025		2024
Balance at the beginning of the year	$	224	$	104	$	155
Additions related to acquisitions	—		134		—
Additions based on tax positions related to the current year	18		7		10
Additions for tax positions of prior years	48		3		7
Reductions for tax positions from prior years	(75)		(21)		(39)
Reductions for settlements	—		—		(2)
Reductions due to lapse of statute of limitations	(3)		(3)		(27)

Balance at the end of the year	$	212	$	224	$	104

Schedule of Supplemental Cash Flow Information

The total amount of income taxes paid, net of refunds received, in 2026 is as follows:


($ in millions)	Year Ended June 30, 2026
United States of America	$	187
Germany	53
France	28
Switzerland	25
Canada	23
Rest of the world	135
Total income taxes paid (net of refunds received)	$	451

Supplemental cash flow information and non-cash investing activities are as follows:


	For the years ended June 30,
($ in millions)	2026		2025		2024
Supplemental cash flow information:
Interest paid, net of amounts capitalized	$	611	$	329	$	336
Income taxes paid	451		261		253
Non-cash financing activities:
Issuance of equity to acquire Berry Global Group, Inc. (1)	$	—	$	8,138	$	—
Non-cash investing activities:
Purchase of property, plant, and equipment accrued, but not paid	$	106	$	93	$	81
Contingent and deferred liabilities incurred related to acquired businesses, but not paid	6		8		27

(1)Non-cash financing activities in fiscal year 2025 include the issuance of ordinary shares as equity consideration related to the Merger. Refer to Note 4, "Acquisitions and Divestitures" for further information.