Amcor plcAMCR
Amcor plc Fair Value Disclosure
Fair Value Measurements
The fair values of the Company's financial assets and financial liabilities listed below reflect the amounts that would be received to sell the assets or paid to transfer the liabilities in an orderly transaction between market participants at the measurement date (exit price).
The Company's non-derivative financial instruments primarily include cash and cash equivalents, trade receivables, trade payables, short-term debt, and long-term debt. At June 30, 2025, and 2024, the carrying value of these financial instruments, excluding long-term debt, approximated fair value because of the short-term nature of these instruments.
Fair value disclosures are classified based on the fair value hierarchy. See Note 2, "Significant Accounting Policies," for information about the Company's fair value hierarchy.
The carrying value of long-term debt with variable interest rates approximates its fair value. The fair value of the Company's long-term debt with fixed interest rates is based on market prices, if available, or expected future cash flows discounted at the current interest rate for financial liabilities with similar risk profiles.
The carrying values and estimated fair values of long-term debt with fixed interest rates (excluding the fair value of designated receive-fixed, pay-variable rate swaps) were as follows:
| June 30, 2025 | June 30, 2024 | |||||||||||||||||||||||||
| Carrying Value | Fair Value | Carrying Value | Fair Value | |||||||||||||||||||||||
| ($ in millions) | (Level 2) | (Level 2) | ||||||||||||||||||||||||
Total long-term debt with fixed interest rates (excluding commercial paper (1) and finance leases) | $ | 12,174 | $ | 12,213 | $ | 5,141 | $ | 4,973 | ||||||||||||||||||
(1)On June 30, 2025, the Company' interest rate swap contracts outstanding for a total notional amount of commercial paper of $400 million matured. These contracts were considered to be economic hedges and the related $1.7 billion notional amount of commercial paper was also excluded from the total long-term debt.
Assets and Liabilities Measured and Recorded at Fair Value on a Recurring Basis
Additionally, the Company measures and records certain assets and liabilities, including derivative instruments and contingent purchase consideration liabilities, at fair value. The following tables summarize the fair values of these instruments, which are measured at fair value on a recurring basis, by level, within the fair value hierarchy:
| June 30, 2025 | ||||||||||||||||||||||||||
| ($ in millions) | Level 1 | Level 2 | Level 3 | Total | ||||||||||||||||||||||
| Assets | ||||||||||||||||||||||||||
| Commodity contracts | $ | — | $ | 1 | $ | — | $ | 1 | ||||||||||||||||||
| Forward exchange contracts | — | 6 | — | 6 | ||||||||||||||||||||||
| Total assets measured at fair value | $ | — | $ | 7 | $ | — | $ | 7 | ||||||||||||||||||
| Liabilities | ||||||||||||||||||||||||||
| Contingent purchase consideration liabilities | $ | — | $ | — | $ | 20 | $ | 20 | ||||||||||||||||||
| Commodity contracts | — | 3 | — | 3 | ||||||||||||||||||||||
| Forward exchange contracts | — | 5 | — | 5 | ||||||||||||||||||||||
| Interest rate swaps | — | 63 | — | 63 | ||||||||||||||||||||||
| Cross currency swaps | — | 497 | — | 497 | ||||||||||||||||||||||
| $ | — | $ | 568 | $ | 20 | $ | 588 | |||||||||||||||||||
| June 30, 2024 | ||||||||||||||||||||||||||
| ($ in millions) | Level 1 | Level 2 | Level 3 | Total | ||||||||||||||||||||||
| Assets | ||||||||||||||||||||||||||
| Commodity contracts | $ | — | $ | 2 | $ | — | $ | 2 | ||||||||||||||||||
| Forward exchange contracts | $ | — | $ | 2 | $ | — | $ | 2 | ||||||||||||||||||
| Total assets measured at fair value | $ | — | $ | 4 | $ | — | $ | 4 | ||||||||||||||||||
| Liabilities | ||||||||||||||||||||||||||
| Contingent purchase consideration liabilities | $ | — | $ | — | $ | 36 | $ | 36 | ||||||||||||||||||
| Commodity contracts | — | 1 | — | 1 | ||||||||||||||||||||||
| Forward exchange contracts | — | 4 | — | 4 | ||||||||||||||||||||||
| Interest rate swaps | — | 92 | — | 92 | ||||||||||||||||||||||
| Cross currency swaps | — | 16 | — | 16 | ||||||||||||||||||||||
| Total liabilities measured at fair value | $ | — | $ | 113 | $ | 36 | $ | 149 | ||||||||||||||||||
The fair value of the commodity contracts was determined using a discounted cash flow analysis based on the terms of the contracts and observed market forward prices discounted at a currency specific rate. Forward exchange contract fair values were determined based on quoted prices for similar assets and liabilities in active markets using inputs such as currency rates and forward points. The fair value of the interest rate swaps was determined using a discounted cash flow method based on market-based swap yield curves, taking into account current interest rates. The fair value of the cross currency swaps was determined using a discounted cash flow method based on market-observed currency rates, forward points, and swap yield curves, adjusted for current interest rates in the respective currencies.
Contingent purchase consideration liabilities arise from business acquisitions and other investments. As of June 30, 2025, the Company had contingent purchase consideration liabilities of $20 million, consisting of $8 million of contingent purchase consideration predominantly relating to fiscal year 2023 acquisitions (refer to Note 5, "Acquisitions and Divestitures") and a $12 million liability that is contingent on future royalty income generated by Discma AG, a subsidiary acquired in March 2017. The fair values of the contingent purchase consideration liabilities were determined for each arrangement individually. The fair values were determined using an income approach with significant inputs that are not observable in the market. Key assumptions include the selection of discount rates consistent with the level of risk of achievement and probability-adjusted financial projections. The expected outcomes are recorded at net present value, which require adjustment over the life for changes in risks and probabilities. Changes arising from modifications in forecasts related to contingent consideration are not expected to be material.
The fair value of contingent purchase consideration liabilities is included in other current liabilities and other non-current liabilities in the consolidated balance sheets.
The following table sets forth a summary of changes in the value of the Company's Level 3 financial liabilities:
| June 30, | |||||||||||||||||
| ($ in millions) | 2025 | 2024 | |||||||||||||||
| Fair value at the beginning of the year | $ | 36 | $ | 46 | |||||||||||||
| Additions due to acquisitions | — | 1 | |||||||||||||||
| Change in fair value of Level 3 liabilities | (2) | (9) | |||||||||||||||
| Payments | (16) | (2) | |||||||||||||||
| Foreign currency translation | 2 | — | |||||||||||||||
| Fair value at the end of the year | $ | 20 | $ | 36 | |||||||||||||
Assets and Liabilities Measured and Recorded at Fair Value on a Nonrecurring Basis
In addition to assets and liabilities that are recorded at fair value on a recurring basis, the Company records certain assets at fair value on a nonrecurring basis, generally when events or changes in circumstances indicate the carrying value may not be recoverable, or when they are deemed to be other than temporarily impaired. These assets include goodwill and other
intangible assets, equity method and other investments, long-lived assets and disposal groups held for sale, and other long-lived assets. Generally, assets are recorded at fair value on a nonrecurring basis as a result of impairment charges or as a result of charges to remeasure assets classified as held for sale to fair value less costs to sell. The fair values of these assets are determined, when applicable, based on valuation techniques using the best information available, and may include quoted market prices, market comparables, and discounted cash flow projections. These nonrecurring fair value measurements are considered to be Level 3 in the fair value hierarchy.
During the fiscal year ended June 30, 2025, the Company recorded an impairment charge of $4 million within the Global Flexible Packaging Solutions reportable segment, to adjust the carrying value of the net assets of $11 million that were held for sale to their estimated fair value less cost to sell. The Company completed the sale of these non-core assets in the three months ended December 31, 2024. Refer to Note 4, "Acquisitions and Disposals". During the fiscal years ended June 30, 2025 and June 30, 2024, there were no impairment charges recorded on indefinite-lived intangibles, including goodwill.
Refer to Note 4, "Acquisitions and Divestitures" for further information about the preliminary estimated acquisition date fair values of the identifiable assets acquired and liabilities assumed in the Merger.
Historical Timeline
| Fiscal Year | Filed | |
|---|---|---|
| 2025 | Aug 15, 2025 | Showing above |
| 2024 | Aug 16, 2024 | |
| 2023 | Aug 17, 2023 | |
| 2022 | Aug 18, 2022 | |
| 2021 | Aug 24, 2021 | |
| 2020 | Aug 27, 2020 | |
| 2019 | Sep 3, 2019 | |
About Fair Value Disclosures
Fair value disclosures classify all assets and liabilities measured at fair value into a three-level hierarchy: Level 1 (quoted market prices), Level 2 (observable inputs like yield curves), and Level 3 (unobservable inputs requiring management estimates). The proportion of Level 3 assets directly reflects how much of the balance sheet depends on internal models rather than market evidence.
Key signals: a growing Level 3 balance relative to total fair-value assets increases valuation uncertainty and earnings volatility risk. Watch for transfers between levels — assets moving from Level 2 to Level 3 often signal deteriorating market liquidity. Unrealized gains and losses on Level 3 positions flow through earnings or other comprehensive income, so large swings deserve scrutiny. For financial institutions, examine the sensitivity disclosures that show how Level 3 valuations change under alternative assumptions. Compare the fair value of debt against its carrying amount to gauge hidden leverage.