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指导essay,指导report essay-Preliminary Final report
AMCOR LIMITE
ABN 62 000 017 372
1. Details of the reporting period and the previous corresponding period
Reporting Period: Year Ended 30 June 2010
Previous Corresponding Period: Year Ended 30 June 2009
2. Results for announcement to the market
$A million
2.1 Revenues from ordinary activities
• From Continuing Operations
• From Discontinued Operations
up
down
3.3%
100.0%
to
to
9,849.5
nil
2.2 Net profit from ordinary activities after tax but
before significant items, attributable to members
up 13.5% to 409.2
2.3 Net profit for the period, after
significant items, attributable to members
down 13.6% to 183.0
Dividends Amount
per
security
Franked amount per
security
Current period
2.4 Final dividend
2.4 Interim dividend
17.0 cents
12.5 cents
nil
nil
Previous corresponding period
2.4 Final dividend
2.4 Interim dividend
17.0 cents
17.0 cents
nil
nil
2.5 Record date for determining entitlements to
the dividend Final dividend – 8 September 2010
2.6 Brief explanation of figures in 2.1 to 2.4 –:
i) Dividends in the current period are unfranked. Dividends to foreign holders are subject to withholding
tax and the declaration that 100% of the dividend is sourced from the Conduit Foreign
Income Account.
ii) Refer to attached press release for further details relating to 2.1 to 2.4.
3. Statement of Financial Performance – refer attached
4. Statement of Financial Position – refer attached
5. Statement of Cash Flows – refer attached
6. Details of individual dividends and payment dates – refer attached, Note 25 Dividends
30/6/2010 Appendix 4E Page 2
7. Details of dividend reinvestment plan
The Dividend Reinvestment Plan (DRP) is in operation. Issue price will be calculated on the arithmeticaverage of the volume weighted average price for the nine ASX trading days September 10 to 22, 2010inclusive. The last date for receipt of election notices for the DRP is 8 September 2010.
8. Statement of retained earnings – refer attached, Note 24 Contributed Equity and
Reserves
9. Net tangible assets
Current period Previous corresponding
Period
Net tangible asset backing per ordinary security $1.49 $1.61
10. Control gained over entities having a material effect – refer attached, Note 32Particulars in Relation to Controlled Entities and Businesses
11. Details of associates and joint venture entities – refer attached, Note 14 Equity#p#分页标题#e#
Accounted Investments
12. Significant information – refer press release attached
13. Not applicable
14. Commentary on results for the period – refer press release attached
15. This report is based on accounts which have been audited.
............................................................ Date: 26 August 2010
Julie McPherson
Company Secretary
A M C O R L I M I T E D
A.B.N. 62 000 017 372
ANNUAL FINANCIAL REPORT
FULL REPORT
FOR THE FINANCIAL YEAR ENDED
30 JUNE 2010
26 August 2010
Amcor Limited and its controlled entities
Income Statements
For the financial year ended 30 June 2010
The above income statements should be read in conjunction with the accompanying notes on pages 9 to 108.
Page 1
$ million Note 2010 2009
Sales revenue from continuing operations 2, 4 9,849.5 9,535.4
Cost of sales (8,107.4) (8,038.7)
Gross profit 1,742.1 1,496.7
Other income 4 80.9 87.2
Sales and marketing expenses (333.9) (326.7)
General and administration expenses (963.6) (820.6)
Research costs (55.2) (39.8)
Share of net profit of equity accounted investments 14 33.5 36.1
Profit from operations 503.8 432.9
Financial income 4 22.3 11.2
Financial expenses 5 (205.7) (192.9)
Net finance costs (183.4) (181.7)
Profit before related income tax expense 320.4 251.2
Income tax expense 7 (118.8) (32.8)
Profit from continuing operations 201.6 218.4
Loss from discontinued operations, net of tax 3 - (0.6)
Profit for the financial period 201.6 217.8
Profit attributable to:
Owners of Amcor Limited 183.0 211.7
Non controlling interest 18.6 6.1
201.6 217.8
Cents
Restated
Cents1
Basic earnings per share 9 15.8 24.1
Diluted earnings per share 9 15.6 24.0
Basic earnings per share 9 15.8 24.0
Diluted earnings per share 9 15.6 23.9
Earnings per share for profit attributable to the ordinary equity holders of Amcor Limited
Earnings per share for profit from continuing operations attributable to the ordinary equity
holders of Amcor Limited
Consolidated
1 The 2009 earnings per share figures have been restated to reflect the bonus element of the Entitlement Offer that was completed in September
2009.
Amcor Limited and its controlled entities
Statements of Comprehensive Income
For the financial year ended 30 June 2010
The above statements of comprehensive income should be read in conjunction with the accompanying notes on pages 9 to 108.
Page 2
$ million Note 2010 2009
Profit for the financial period 201.6 217.8
Other comprehensive income
Available-for-sale financial assets
Net change in fair value of available-for-sale financial assets 2.2 (0.8)
Net change in fair value of available-for-sale financial assets reclassified to profit or loss (2.6) 2.2#p#分页标题#e#
Cash flow hedges
Effective portion of changes in fair value of cash flow hedges (166.3) (13.1)
14.5 7.7
158.3 (0.5)
Exchange differences on translating foreign operations
Exchange differences on translation of foreign operations (633.3) 314.1
Net investment hedge of foreign operations 283.9 (194.5)
Exchange differences on translating foreign operations reclassified to profit or loss 0.2 -
Actuarial losses on defined benefit plans (103.3) (40.1)
Share of other comprehensive income of associates (50.5) 13.9
Income tax benefit on other comprehensive income 7 33.3 14.8
Other comprehensive (loss)/income for the financial period, net of tax 7 (463.6) 103.7
(262.0) 321.5
Owners of Amcor Limited (260.8) 307.2
Non controlling interest (1.2) 14.3
(262.0) 321.5
Consolidated
Net change in fair value of cash flow hedges reclassified to profit or loss
Net change in fair value of cash flow hedges reclassified to non-financial assets
Total comprehensive (loss)/income for the financial period
Total comprehensive (loss)/income attributable to:
Amcor Limited and its controlled entities
Statements of Financial Position
As at 30 June 2010
The above statements of financial position should be read in conjunction with the accompanying notes on pages 9 to 108.
Page 3
$ million Note 2010 2009
Current assets
Cash and cash equivalents 10 267.1 188.6
Trade and other receivables 11 1,786.8 1,141.0
Inventories 12 1,469.0 979.6
Other financial assets 13 22.8 8.7
Total current assets 3,545.7 2,317.9
Non-current assets
Investments accounted for using the equity method 14 464.2 509.0
Other financial assets 13 35.3 42.3
Property, plant and equipment 15 4,800.6 3,795.9
Deferred tax assets 16 413.5 162.9
Intangible assets 17 1,835.5 1,499.1
Other non-current assets 18 215.4 118.9
Total non-current assets 7,764.5 6,128.1
Total assets 11,310.2 8,446.0
Current liabilities
Trade and other payables 19 2,464.6 1,722.2
Interest-bearing liabilities 20 1,378.7 956.1
Other financial liabilities 21 23.8 16.2
Current tax liabilities 76.1 53.5
Provisions 22 271.7 204.3
Total current liabilities 4,214.9 2,952.3
Non-current liabilities
Trade and other payables 19 30.2 31.5
Interest-bearing liabilities 20 1,932.5 1,875.7
Other financial liabilities 21 2.3 -
Deferred tax liabilities 16 448.5 210.2
Provisions 22 211.2 124.9
Retirement benefit obligations 23 346.7 175.8
Total non-current liabilities 2,971.4 2,418.1
Total liabilities 7,186.3 5,370.4
NET ASSETS 4,123.9 3,075.6
Equity
Contributed equity 24 4,029.8 2,440.3
Reserves (657.1) (311.5)
Retained profits 695.2 883.8
Total equity attributable to the owners of Amcor Limited 4,067.9 3,012.6#p#分页标题#e#
Non controlling interest 56.0 63.0
TOTAL EQUITY 4,123.9 3,075.6
Consolidated
Amcor Limited and its controlled entities
Statements of Changes in Equity
For the financial year ended 30 June 2010
The above statements of changes in equity should be read in conjunction with the accompanying notes on pages 9 to 108.
Page 4
$ million
Contributed
Equity
Available-forsale
revaluation
reserve
Cash flow
hedge reserve
Share-based
payments
reserve
Exchange
fluctuation
reserve
Retained
profits
Total
attributable to
owners of
Amcor
Non
controlling
interest
Total
equity
Balance at 1 July 2009 2,440.3 (0.8) (22.1) 33.1 (321.7) 8 83.8 3,012.6 63.0 3,075.6
Profit for the financial period - - - - - 1 83.0 183.0 18.6 201.6
Other comprehensive income
- 2.2 - - - - 2.2 - 2.2
- (2.6) - - - - (2.6) - (2.6)
- - (165.1) - - - (165.1) - (165.1)
- - 13.2 - - - 13.2 - 13.2
- - 158.0 - - - 158.0 - 158.0
Exchange differences on translation of foreign operations, net of tax - - - - (510.0) - (510.0) (19.8) (529.8)
Net investment hedge of foreign operations - - - - 186.5 - 186.5 - 186.5
- - - - 0.2 - 0.2 - 0.2
Actuarial losses on defined benefit plans, net of tax - - - - - ( 75.7) (75.7) - (75.7)
Share of associates reserve movement, net of tax - - - - (50.5) - (50.5) - (50.5)
Total other comprehensive income - (0.4) 6.1 - (373.8) ( 75.7) (443.8) (19.8) (463.6)
- (0.4) 6.1 - (373.8) 1 07.3 (260.8) (1.2) (262.0)
Contributions of equity, net of transaction costs 1,589.5 - - - - - 1,589.5 1.9 1,591.4
Dividends paid (Note 25) - - - - - ( 295.9) (295.9) - (295.9)
Dividends paid to non controlling interests in subsidiaires - - - - - - - (7.7) (7.7)
Share-based payments option expense - - - 22.5 - - 22.5 - 22.5
Balance at 30 June 2010 4,029.8 (1.2) (16.0) 55.6 (695.5) 6 95.2 4,067.9 56.0 4,123.9
Transactions with owners in their capacity as owners:
Net change in fair value of cash flow hedges reclassified to profit or loss, net of
tax
Net change in fair value of cash flow hedges reclassified to non-financial
assets, net of tax
Exchange differences on foreign operations reclassified to profit or loss, net of
tax
Total comprehensive income for the financial period
Net change in fair value of available-for-sale financial assets, net of tax
Net change in fair value of available-for-sale financial assets reclassified to
profit or loss, net of tax
Effective portion of changes in fair value of cash flow hedges, net of tax
Amcor Limited and its controlled entities
Statements of Changes in Equity (continued)
For the financial year ended 30 June 2010
The above statements of changes in equity should be read in conjunction with the accompanying notes on pages 9 to 108.#p#分页标题#e#
Page 5
$ million
Contributed
Equity
Available-forsale
revaluation
reserve
Cash flow
hedge reserve
Share-based
payments
reserve
Exchange
fluctuation
reserve
Retained
profits
Total
attributable to
owners of
Amcor
Non
controlling
interest
Total
equity
Balance at 1 July 2008 2,406.1 (2.2) (13.5) 23.2 (451.2) 9 86.4 2,948.8 54.5 3,003.3
Profit for the financial period - - - - - 2 11.7 211.7 6.1 217.8
Other comprehensive income
- (0.8) - - - - (0.8) - (0.8)
- 2.2 - - - - 2.2 - 2.2
- - (8.8) - - - (8.8) - (8.8)
- - 0.7 - - - 0.7 - 0.7
- - (0.5) - - - (0.5) - (0.5)
Exchange differences on translation of foreign operations, net of tax - - - - 252.0 - 252.0 8.2 260.2
Net investment hedge of foreign operations, net of tax - - - - (136.4) - (136.4) - (136.4)
Actuarial losses on defined benefit plans, net of tax - - - - - ( 26.8) (26.8) - (26.8)
Share of associates reserve movement, net of tax - - - - 13.9 - 13.9 - 13.9
Total other comprehensive income - 1.4 (8.6) - 129.5 ( 26.8) 95.5 8.2 103.7
- 1.4 (8.6) - 129.5 1 84.9 307.2 14.3 321.5
Contributions of equity, net of transaction costs 34.2 - - - - - 34.2 - 34.2
Dividends paid (Note 25) - - - - - ( 284.2) (284.2) - (284.2)
Dividends paid to non controlling interests in subsidiaires - - - - - - - (4.9) (4.9)
Share-based payments option expense - - - 9.9 - - 9.9 - 9.9
Non controlling interest buy-out - - - - - ( 3.3) (3.3) (0.9) (4.2)
Balance at 30 June 2009 2,440.3 (0.8) (22.1) 33.1 (321.7) 8 83.8 3,012.6 63.0 3,075.6
Total comprehensive income for the financial period
Transactions with owners in their capacity as owners:
Effective portion of changes in fair value of cash flow hedges, net of tax
Net change in fair value of cash flow hedges reclassified to profit or loss, net of
tax
Net change in fair value of cash flow hedges reclassified to non-financial
assets, net of tax
Net change in fair value of available-for-sale financial assets, net of tax
Net change in fair value of available-for-sale financial assets reclassified to
profit or loss, net of tax
.
Amcor Limited and its controlled entities
Cash Flow Statements
For the financial year ended 30 June 2010
The above cash flow statements should be read in conjunction with the accompanying notes on pages 9 to 108.
Page 6
$ million Note 2010 2009
Cash flows from operating activities
Profit for the financial period 201.6 217.8
Depreciation 15 424.8 412.4
Amortisation of intangible assets 17 29.9 29.7
Impairment losses on property, plant and equipment, receivables and inventory 4.8 14.3
Reversal of impairment losses on property, plant and equipment, receivables and inventory (1.4) ( 2.8)#p#分页标题#e#
Non-cash retirement benefit expense 31.4 29.2
Net finance costs 183.4 181.7
Grant income recognised 4 (1.6) ( 2.2)
Net loss/(gain) on disposal of non-current assets 4, 5 1.8 ( 23.8)
Net loss/(gain) on disposal of businesses/controlled entities 4 - ( 0.5)
Net loss on disposal of equity accounted investments (0.6) -
Fair value gains on other financial assets at fair value through income statement 4 (0.9) ( 0.3)
Share of net profits of associates, net of dividends received 14 (33.5) ( 36.1)
Net foreign exchange loss/(gain) 16.0 ( 46.4)
Dividends from other entities 4 (0.6) ( 0.8)
Non cash significant items 19.2 79.3
Other sundry items 33.4 7.0
Income tax expense 7 118.8 41.0
Operating cash flows before changes in working capital and provisions 1,026.5 8 99.5
- Increase in prepayments and other operating assets (33.7) ( 35.3)
- Decrease in employee benefits and other operating liabilities (56.7) ( 63.4)
- Increase/(decrease) in provisions 56.2 ( 21.8)
- (Increase)/decrease in trade and other receivables (113.4) 139.5
- (Increase)/decrease in inventories (137.0) 215.4
- Increase/(decrease) in trade and other payables 310.6 ( 221.8)
1,052.5 9 12.1
Dividends received 3.4 7.0
Interest paid (183.2) ( 166.7)
Income tax paid (88.6) ( 78.7)
Net cash from operating activities 784.1 673.7
Cash flows from investing activities
Repayment of loans by associated companies and other persons 3.4 0.6
Payments for acquisition of controlled entities, businesses and associates, net of cash acquired (2,454.5) ( 151.8)
Payments for property, plant and equipment and intangible assets (501.5) ( 564.3)
Proceeds on disposal of associates, controlled entities and businesses 8.8 39.8
Payments on disposal of controlled entities and business treated as discontinued operations, net of
cash 3 - ( 1.9)
Proceeds on disposal of property, plant and equipment 26.2 103.4
Net cash from investing activities (2,917.6) ( 574.2)
Consolidated
Amcor Limited and its controlled entities
Cash Flow Statements (continued)
For the financial year ended 30 June 2010
The above cash flow statements should be read in conjunction with the accompanying notes on pages 9 to 108.
Page 7
$ million Note 2010 2009
Cash flows from financing activities
Proceeds from share issues and calls on partly-paid shares 1,570.6 28.7
Proceeds on capital contribution from non controlling interest 2.0 -
Proceeds from borrowings 7,183.0 5,077.9
Repayment of borrowings (6,161.6) ( 5,028.1)
Principal lease repayments (4.5) ( 1.6)
Dividends and other equity distributions paid (286.2) ( 288.5)
Net cash from financing activities 2,303.3 ( 211.6)
Net increase/(decrease) in cash held 169.8 ( 112.1)
Cash and cash equivalents at the beginning of the financial period 57.3 166.0#p#分页标题#e#
Effects of exchange rate changes on cash and cash equivalents (24.7) 3.4
Cash and cash equivalents at the end of the financial period(1) 202.4 57.3
Consolidated
(1) Refer to notes 10 and 20 for details of the financing arrangements of the consolidated entity.
Reconciliation of cash and cash equivalents
Cash assets and cash equivalents 10 267.1 188.6
Bank overdrafts 20 (64.7) ( 131.3)
202.4 57.3
For purposes of the Cash Flow Statements, cash and cash equivalents includes cash on hand and at bank and short-term money
market investments, net of outstanding bank overdrafts. Cash and cash equivalents as at the end of the financial year as shown in the
Cash Flow Statements is reconciled to the related items in the Statements of Financial Position as follows:
.
Amcor Limited and its controlled entities
Contents of notes to the financial statements
Page 8
Note 1. Summary of Significant Accounting Policies ............................................................. 9
Note 2. Segment Information ............................................................................................... 23
Note 3. Discontinued Operations ......................................................................................... 29
Note 4. Revenue, Other Income and Financial Income ....................................................... 31
Note 5. Expenses ................................................................................................................ 32
Note 6. Significant Items ...................................................................................................... 33
Note 7. Income Tax Expense ............................................................................................... 35
Note 8. Auditors’ Remuneration ........................................................................................... 37
Note 9. Earnings per Share ................................................................................................. 38
Note 10. Cash and Cash Equivalents .................................................................................... 39
Note 11. Trade and Other Receivables ................................................................................. 39
Note 12. Inventories ............................................................................................................... 40
Note 13. Other Financial Assets ............................................................................................ 40
Note 14. Equity Accounted Investments ................................................................................ 41
Note 15. Property, Plant and Equipment ............................................................................... 44
Note 16. Deferred Tax Assets and Liabilities ......................................................................... 46#p#分页标题#e#
Note 17. Intangible Assets ..................................................................................................... 48
Note 18. Other Non-Current Assets ....................................................................................... 50
Note 19. Trade and Other Payables ...................................................................................... 50
Note 20. Interest-Bearing Liabilities ....................................................................................... 50
Note 21. Other Financial Liabilities ........................................................................................ 53
Note 22. Provisions ................................................................................................................ 54
Note 23. Retirement Benefit Obligations ................................................................................ 56
Note 24. Contributed Equity and Reserves ............................................................................ 61
Note 25. Dividends ................................................................................................................ 62
Note 26 Financial Risk Management .................................................................................... 64
Note 27. Share-Based Payments .......................................................................................... 78
Note 28. Key Management Personnel Disclosure ................................................................. 90
Note 29. Other Related Party Disclosures ............................................................................. 94
Note 30. Contingencies ......................................................................................................... 95
Note 31. Commitments .......................................................................................................... 97
Note 32. Particulars in Relation to Controlled Entities and Businesses ................................. 98
Note 33. Deed of Cross Guarantee ....................................................................................... 99
Note 34. Business Combinations ......................................................................................... 103
Note 35. Amcor Limited Information………………………………… …………………………..106
Note 36. Events Subsequent to Balance Date ..................................................................... 107
Amcor Limited and its controlled entities
Notes to the financial statements
30 June 2010
Page 9
Note 1. Summary of Significant Accounting Policies
Amcor Limited (‘the Company’) is a company domiciled in Australia. The Financial Report includes financial statements of the Company#p#分页标题#e#
and its subsidiaries (together referred to as ‘the consolidated entity’) and the consolidated entity’s interest in associates.
The principal accounting policies adopted in the preparation of this Financial Report are set out below. These policies have been
consistently applied to all the periods presented in these consolidated financial statements by the consolidated entity.
(a) Basis of preparation
Statement of compliance
This general purpose Financial Report for the year ended 30 June 2010 has been prepared in accordance with Australian AccountingStandards (AASBs), including Australian Accounting Interpretations, adopted by the Australian Accounting Standards Board (AASB) andwith the Corporations Act 2001. The Financial Report of the consolidated entity complies with the International Financial ReportingStandards (IFRSs) and Interpretations adopted by the International Accounting Standards Board (IASB).
The Company is of the kind referred to in the Australian Securities and Investments Commission Class order 98/0100 dated 10 July 1998.In accordance with that Class Order, amounts in this Financial Report have been rounded to the nearest $100,000 or, where the amount is$50,000 or less, zero, unless specifically stated otherwise.
The financial statements were approved by the Board of Directors on 26 August 2010.
Early adoption of standards
In the current financial period, the consolidated entity has elected to early adopt the following revised standards issued by the AASB thatare relevant to its operations:
• AASB 2009-9 Amendments to Australian Accounting Standards – Additional Exemptions for First-time Adopters [AASB 1] (September2009);
• AASB 2009-10 Amendments to Australian Accounting Standards – Classification of Rights Issues [AASB 132] (October 2009);
• AASB 2009-12 Amendments to Australian Accounting Standards [AASBs 5, 8, 108, 110, 112, 119, 133, 137, 139, 1023 & 1031and Interpretations 2, 4, 16, 1039 & 1052] (December 2009);
• Interpretation 19 Extinguishing Financial Liabilities with Equity Instruments (December 2009)
• AASB 2009-5 Further Amendments to Australian Accounting Standards arising from the Annual Improvements Project
[AASBs 5, 8, 101, 107, 118, 136 early adopted, refer note 1(x) for two amendments not early adopted within this standard]
(May 2009)
• AASB 2010-1 Amendments to Australian Accounting Standards – Limited Exemption from Comparative AASB 7 Disclosures
for First Time Adopters [AASB 1 & AASB 7] (February 2010).
The adoption of these revised standards has not had a significant impact on upon the financial results of the consolidated entity.
Basis of measurement
The consolidated financial statements have been prepared under the historical cost convention except for available-for-sale financial
assets, derivative financial instruments and financial instruments at fair value through profit or loss which are measured at fair value, refer#p#分页标题#e#
note 1(j).
Critical accounting estimates and assumptions
The preparation of financial statements requires management to exercise its judgement and make estimates and assumptions in applying
the consolidated entity’s accounting policies which impact the reported amounts of assets, liabilities, income and expenses.
Estimates and judgements are evaluated on an ongoing basis and are based on historical experience and other factors, including
expectations of future events that are believed to be reasonable under the circumstances. The actual result may differ from these
accounting estimates. Revisions to accounting estimates are recognised in the period in which the estimate is revised and in any future
periods affected.
Management believes the following are the critical accounting policies that involve a high degree of judgement or complexity, or where
assumptions and estimation uncertainties are significant in the preparation of the financial statements:
• the testing for impairment of assets – refer note 1(p), notes 15 and 17;
• measurement of the recoverable amounts of cash-generating units containing goodwill – refer notes 1(o), 1(p) and note 17;
• direct and indirect income tax related assumptions and estimates, including utilisation of tax losses – refer note 1(i), note 16
and note 30;
• measurement of defined benefit obligations – refer note 1(t) and note 23;
• measurement of share-based payments – refer note 1(s) and note 27;
• valuation of financial instruments – refer note 1(j) and note 26; and
• the provisioning for restructuring and market sector rationalisation costs – refer note 1(r), note 6 and note 22.
Amcor Limited and its controlled entities
Notes to the financial statements
30 June 2010
Page 10
Note 1. Summary of Significant Accounting Policies (continued)
(b) Principles of consolidation
Subsidiaries
Subsidiaries are all those entities that are controlled by the consolidated entity. Control exists where the consolidated entity has the
power to govern the financial and operating policies of an entity so as to obtain benefits from its activities, generally accompanying a
shareholding of more than 50% of the voting rights. In assessing control, the existence and effect of potential voting rights that are
presently exercisable or convertible are considered.
The financial statements of subsidiaries are included in the consolidated financial statements from the date that the consolidated entity
obtains control until the date that control ceases. All balances and transactions between entities included within the consolidated entity
are eliminated. Non controlling interests in the results and equity of subsidiaries are shown separately in the income statements and
statements of financial position respectively.#p#分页标题#e#
The purchase method of accounting is used to account for the acquisition of subsidiaries by the consolidated entity (refer to note 1(d)).
Associates
Associates are those entities over which the consolidated entity has significant influence, but not control or joint control, to govern the
financial and operating policies.
After initially being recognised at cost, the consolidated entity accounts for investments in associates using the equity method. From
the date that significant influence commences, the consolidated entity recognises its share of the associates’ profits or losses in the
income statement, and its share of movements in other comprehensive income is recognised in other comprehensive income until the
date that significant influence ceases. These cumulative movements are adjusted against the carrying amount of the investment.
Dividends receivable from associates are recognised as a reduction in the carrying amount of the investment.
Changes in the consolidated entity’s share of the net worth of associates, due to dilution caused by an issue of equity by the associate,
are recognised in the income statement as a gain or loss. The consolidated entity’s investment in associates includes goodwill (net of
any accumulated impairment loss) identified on acquisition.
(c) Foreign currency translation
Items included in the financial statements of each of the entities included within the consolidated entity are measured using the currency
of the economic environment in which the entity primarily generates and expends cash (‘the functional currency’). These consolidated
financial statements are presented in Australian dollars, which is the functional currency of the Company, Amcor Limited.
Foreign currency transactions
Transactions in foreign currencies are translated into the respective functional currency of the entity using exchange rates prevailing at
the date of the transaction. Monetary assets and liabilities denominated in foreign currencies at the reporting date are retranslated to
the functional currency of the entity holding the monetary assets and liabilities at the foreign exchange rate at that date. Foreign
exchange gains and losses arising from the settlement of such transactions and from the translation of monetary assets and liabilities
denominated in foreign currencies are recognised in the income statement, except when deferred in equity as qualifying cash flow
hedges and qualifying net investment hedges, refer note 1(j).
Translation differences on non-monetary items, such as equities held at fair value through profit or loss, are reported as part of the fair
value gain or loss. Translation differences on non-monetary items, such as equities classified as available-for-sale financial assets, are
included in the available-for-sale investments revaluation reserve in equity.
Foreign operations#p#分页标题#e#
The results and financial position of all entities within the consolidated entity that have a functional currency different from the
presentation currency are translated into Australian dollars as follows:
• assets and liabilities for each statement of financial position presented are translated at the closing exchange rate at the date of
that balance sheet;
• income and expenses for each income statement are translated at average exchange rates, which approximate the exchange
rates at the dates of the transactions; and
• goodwill and fair value adjustments arising on the acquisition of a foreign operation are treated as assets and liabilities of the
foreign operation and are translated at the closing exchange rate.
On consolidation, all the resulting exchange differences arising from the translation are recognised in other comprehensive income and
accumulated as a separate component of equity in the Exchange Fluctuation Reserve (EFR). When a foreign operation is disposed of,
the amount that has been recognised in equity in relation to the proportion of the foreign operation disposed of is transferred to the
income statement as an adjustment to the profit or loss on disposal.
Hedge of net investment in foreign operation
On consolidation, foreign currency differences arising on the retranslation of financial assets and liabilities designated as net investment
hedges of a foreign operation are recognised in other comprehensive income and accumulated in the EFR, to the extent that the hedge
is effective. To the extent that the hedge is ineffective, the foreign currency differences arising on the retranslation are recognised in
the income statement. When the hedged net investment is disposed of, the cumulative amount that has been recognised in equity in
relation to the hedged net investment is transferred to the income statement as an adjustment to the profit or loss on disposal.
Amcor Limited and its controlled entities
Notes to the financial statements
30 June 2010
Page 11
Note 1. Summary of Significant Accounting Policies (continued)
(d) Business combinations
The acquisition method of accounting is used to account for all business combinations, including business combinations involving
entities or businesses under common control, regardless of whether equity instruments or other assets are acquired. The consideration
transferred for the acquisition of a subsidiary comprises the fair values of the assets transferred, the liabilities incurred and the equity
interests issued by the group. The consideration transferred also includes the fair value of any contingent consideration arrangement
and the fair value of any pre-existing equity interest in the subsidiary. Acquisition-related costs are expensed as incurred. Identifiable
assets acquired and liabilities and contingent liabilities assumed in a business combination are, with limited exceptions, measured#p#分页标题#e#
initially at their fair values at the acquisition date. On an acquisition-by-acquisition basis, the group recognises any non-controlling
interest in the acquiree either at fair value or at the non-controlling interest’s proportionate share of the acquiree’s net identifiable
assets.
The excess of the consideration transferred, the amount of any non-controlling interest in the acquiree and the acquisition-date fair
value of any previous equity interest in the acquiree over the fair value of the group’s share of the net identifiable assets acquired is
recorded as goodwill. If those amounts are less than the fair value of the net identifiable assets of the subsidiary acquired and the
measurement of all amounts has been reviewed, the difference is recognised directly in profit or loss as a bargain purchase.
Where settlement of any part of cash consideration is deferred, the amounts payable in the future are discounted to their present value
as at the date of exchange. The discount rate used is the entity’s incremental borrowing rate, being the rate at which a similar borrowing
could be obtained from an independent financier under comparable terms and conditions.
Contingent consideration is classified either as equity or a financial liability. Amounts classified as a financial liability are subsequently
remeasured to fair value with changes in fair value recognised in profit or loss.
(e) Revenue
Sale of goods
Revenue from the sale of goods is measured at the fair value of the consideration received or receivable, net of returns, allowances and
discounts. Revenue is recognised when the risks and rewards of ownership have transferred to the customer. No revenue is
recognised if there are significant uncertainties regarding recovery of the consideration due, the costs incurred or to be incurred cannot
be measured reliably, there is risk of return of goods or there is continuing management involvement with the goods.
Dividend income
Dividend income is recognised on the date that the consolidated entity’s right to receive payment is established.
(f) Government grants
Grants from governments are recognised at their fair value where there is a reasonable assurance that the grant will be received and
the consolidated entity will comply with all attached conditions.
Grants are received in relation to the purchase and construction of items of property, plant and equipment. The grants are included in
non-current liabilities as deferred income and are credited to the income statement on a straight-line basis over the expected useful life
of the related asset.
(g) Lease payments
Payments made under operating leases are recognised in the income statement on a straight-line basis over the term of the lease,
while any lease incentive is recognised as an integral part of the total lease expense, over the term of the lease.#p#分页标题#e#
Minimum lease payments made under finance leases are apportioned between the finance expense and the reduction of the
outstanding lease liability. The interest element of the finance cost is recognised in the income statement over the lease period so as to
produce a constant periodic rate of interest on the remaining balance of the liability for each period.
(h) Net finance costs
Net finance costs include interest income and expense, amortisation of discounts or premiums relating to borrowings, interest costs
related to defined benefit pension plans, amortisation of ancillary costs incurred in connection with the arrangement of borrowings,
lease finance charges and the unwinding discount on provision balances.
Interest income and borrowing costs are recognised as they accrue using the effective interest rate method.
Financing costs are brought to account in determining profit for the year, except to the extent the financing costs are directly attributable
to the acquisition, construction or production of a qualifying asset. Such financing costs are capitalised as part of the cost of the asset
up to the time it is ready for its intended use and are then amortised over the expected useful economic life.
Amcor Limited and its controlled entities
Notes to the financial statements
30 June 2010
Page 12
Note 1. Summary of Significant Accounting Policies (continued)
(i) Income tax
General
Income tax expense comprises current and deferred tax. Income tax expense is recognised in profit or loss except to the extent that it
relates to items recognised directly in equity, in which case it is recognised in equity.
Current tax is the expected tax payable on the taxable income for the period, using tax rates enacted or substantively enacted at the
reporting date, and any adjustment to tax payable in respect of previous periods, adjusted by changes in deferred tax assets and
liabilities attributable to temporary differences between the tax bases of assets and liabilities and their carrying amounts in the financial
statements, and by the availability of unused tax losses.
Deferred tax is recognised using the balance sheet method in which temporary differences are calculated based on the carrying
amounts of assets and liabilities for financial reporting purposes and the amounts used for taxation purposes. Deferred tax is not
recognised for the following temporary differences: the initial recognition of goodwill; the initial recognition of assets or liabilities in a
transaction that is not a business combination and that affects neither accounting nor taxable profit; and differences relating to
investments in subsidiaries to the extent that it is probable that they will not reverse in the foreseeable future. Deferred tax is measured
at the tax rates that are expected to be applied when the temporary difference reverses, that is, when the asset is realised or the liability#p#分页标题#e#
is settled, based on the laws that have been enacted or substantively enacted at the reporting date.
Deferred tax assets are recognised only to the extent that it is probable that future taxable profits will be available against which the
assets can be utilised. Deferred tax assets are reviewed at each reporting date and are reduced to the extent that it is no longer
probable that the related tax benefit will be realised.
Current tax assets and liabilities are offset where the consolidated entity has a legally enforceable right to offset and intends either to
settle on a net basis, or to realise the asset and settle the liability simultaneously. Deferred tax assets and liabilities are offset when
there is a legally enforceable right to offset and when the deferred tax balances relate to the same taxation authority.
Use of estimates and judgements
The consolidated entity is subject to income taxes in Australia and foreign jurisdictions and as a result significant judgement is required
in determining the consolidated entity’s provision for income tax. There are many transactions and calculations relating to the ordinary
course of business for which the ultimate tax determination is uncertain. The consolidated entity recognises liabilities for potential tax
audit issues based on management’s estimate of whether additional taxes will be due. Where the final tax outcome of these matters is
different from the amounts that were initially recorded, these differences impact the current and deferred tax provisions in the period in
which such determination is made.
The assumptions regarding future realisation, and therefore the recognition of deferred tax assets, may change due to future operating
performance and other factors.
Goods and services tax/value added tax
Revenues, expenses and assets are recognised net of the amount of goods and services tax and valued added tax (GST/VAT) and
other sales related taxes, except where the amount of GST/VAT incurred is not recoverable from the relevant taxation authority. In
these circumstances the GST/VAT is recognised as part of the cost of acquisition of the asset or as part of the expense.
Receivables and payables are stated with the amount of GST/VAT included. The net amount of GST/VAT recoverable from, or payable
to, taxing authorities is included as a current asset or liability in the statements of financial position.
Cash flows are included in the cash flow statements on a gross basis. The GST/VAT component of cash flows arising from investing
and financing activities which are recoverable from, or payable to, taxing authorities are classified as operating cash flows.
Amcor Limited and its controlled entities
Notes to the financial statements
30 June 2010
Page 13
Note 1. Summary of Significant Accounting Policies (continued)
(j) Financial instruments
Non-derivative financial instruments#p#分页标题#e#
The consolidated entity classifies its investments and other financial assets into the following categories: financial assets at fair value
through the income statement; loans and receivables; held-to-maturity investments; and available-for-sale financial assets. The
financial instrument classification depends on the purpose for which the investments and other financial assets were acquired.
A non-derivative financial instrument is recognised when the consolidated entity becomes a party to the contractual provisions of the
instrument. The purchase of investments and other financial assets that are available-for-sale are recognised on trade date, the date
on which the consolidated entity commits to purchase the asset. Financial assets are derecognised when the rights to receive cash
flows from the financial asset have expired or have been transferred and the consolidated entity has transferred substantially all the
risks and rewards of ownership. Financial liabilities are derecognised if the consolidated entity’s obligations specified in the contract
expire or are discharged or cancelled.
The consolidated entity’s accounting policies on accounting for finance income and expense and on impairment of financial assets are
described in notes 1(h) and 1(p) respectively. Refer to note 1(w) regarding fair value estimation in the measurement of financial
instruments.
Non-derivative financial instruments comprise cash and cash equivalents, trade receivables, loans and other receivables, investments
in equity securities, trade and other payables and interest-bearing liabilities.
(i) Cash and cash equivalents
Cash and cash equivalents include cash on hand and at bank, short term deposits and short-term money market investments. Bank
overdrafts are shown within interest bearing liabilities in current liabilities on the statements of financial position, refer notes 10 and 20.
Bank overdrafts that are repayable on demand and form an integral part of the consolidated entity’s cash management are included as
a component of cash and cash equivalents for the purpose of the statement of cash flows.
(ii) Trade receivables, loans and other receivables
Trade and other receivables are initially recognised at fair value and subsequently measured at amortised cost using the effective
interest rate method, less any impairment losses, refer note 11.
The collectability of trade and other receivables is reviewed on an ongoing basis. Individual debts which are known to be uncollectible
are written off when identified. An impairment provision is recognised when there is objective evidence that the consolidated entity will
be unable to collect amounts due, according to the original terms of the receivables. Financial difficulty of the debtor, default in
payments and the probability that the debtor will enter bankruptcy are considered indicators that a trade receivable is impaired. Where#p#分页标题#e#
it is considered unlikely that the full amount of the receivable will be collected, a provision is raised for the amount that is doubtful.
The amount of the impairment loss is recognised in the income statement within ‘general and administration expense’. When a trade
receivable, for which an impairment provision had been recognised, becomes uncollectible it is written off against the impairment
provision. Subsequent recoveries of amounts previously written off are credited against ‘general and administration expense’ in the
income statement.
Loans are non-derivative financial assets with fixed or determinable payments and are measured at their amortised cost using the
effective interest rate method and are usually interest bearing. They are included in current assets, except for those with maturities
greater than 12 months after the balance sheet date which are classified as non-current assets, refer notes 11 and 13.
(iii) Investments in equity securities
Investments in listed equity securities are available-for-sale financial assets and are included in non-current assets, refer note 13.
Investments in listed equity securities are initially recognised at fair value plus transaction costs and are subsequently carried at fair
value. The fair value of the quoted investments is based on current bid prices. Unrealised gains and losses arising from changes in the
fair value are recognised in equity in the available-for-sale fair value reserve. When securities classified as available-for-sale are sold
or impaired, the accumulated fair value adjustments within equity are transferred to the income statement.
Investments in equity instruments that do not have a quoted market price in an active market, and for which fair value can not be
reliably measured, are recognised at cost less any impairment losses.
Amcor Limited and its controlled entities
Notes to the financial statements
30 June 2010
Page 14
Note 1. Summary of Significant Accounting Policies (continued)
(j) Financial instruments (continued)
Non-derivative financial instruments (continued)
(iv) Trade and other payables
These amounts represent liabilities for goods and services provided to the consolidated entity prior to the end of the financial year
which were unpaid at the end of the financial year. These amounts are unsecured.
Trade and other payables are stated at their amortised cost and are non interest bearing, refer note 19.
(v) Interest-bearing liabilities
Bank overdrafts, bank loans, commercial paper, mortgage loans and other loans are initially recognised at their fair value, net of
transaction costs incurred. Subsequent to initial recognition, interest-bearing liabilities are measured at amortised cost with any
difference between the net proceeds and the maturity amount recognised in the income statement over the period of the borrowings#p#分页标题#e#
using the effective interest rate method, refer note 20.
Eurobond notes and US$ notes are carried at amortised cost, translated at exchange rates ruling at reporting date. Any difference
between amortised cost and their amount at maturity is recognised in the income statement over the period of the borrowing using the
effective interest rate method.
Derivative financial instruments
The consolidated entity uses derivative financial instruments to hedge its exposure to foreign exchange, interest rate, commodity price
and employee share plan risk arising from operational, financing and investment activities, refer notes 13 and 21.
Derivative financial instruments are recognised initially at fair value on the date the instrument is entered into. Subsequent to initial
recognition, derivative financial instruments are remeasured to fair value. The gain or loss on remeasurement to fair value is
recognised immediately in the income statement unless the derivative is designated and is effective as a hedging instrument, in which
event, the timing and the recognition of profit or loss depends on the nature of the hedging relationship. The consolidated entity
designates certain derivatives either as: hedges of the exposure to fair value changes in recognised assets or liabilities or firm
commitments (fair value hedges); hedges of the exposure to variability in cash flows attributable to a recognised asset or liability or
highly probable forecast transaction (cash flow hedges); or hedges of a net investments in foreign operations (net investment hedges).
The fair value of various derivative financial instruments used for hedging purposes are disclosed in note 26.
The consolidated entity documents, at the inception of the transaction, the relationship between hedging instruments and hedged items,
as well as its risk management objective and strategy for undertaking various hedge transactions. The consolidated entity also
documents its assessment, both at hedge inception and on an ongoing basis, as to whether the derivatives that are used in hedging
transactions have been and will continue to be highly effective in offsetting changes in fair values or cash flows of hedged items.
Derivative instruments are classified as non-current assets or liabilities when the remaining maturity of the hedged item is greater than
12 months; and are classified as current assets or liabilities when the remaining maturity is less than 12 months. Trading derivatives
are classified as a current asset or liability.
Certain derivative instruments do not qualify for hedge accounting. Changes in the fair value of any derivative instrument that does not
qualify for hedge accounting are recognised immediately in the income statement.
(vi) Fair value hedge
Where a derivative financial instrument is designated as a hedge of exposure to changes in fair value of a recognised asset or liability,#p#分页标题#e#
the changes in the fair value of the derivative are recognised in the income statement, together with the changes in fair value of the
hedged asset or liability attributable to the hedged risk.
(vii) Cash flow hedge
Where a derivative financial instrument is designated as a hedge of the variability in cash flows of a recognised asset or liability, or a
highly probable forecast transaction, the effective part of any gain or loss on the derivative financial instrument is recognised in other
comprehensive income and accumulated in equity in the hedging reserve. The change in the fair value that is identified as ineffective is
recognised immediately in the income statement.
Amounts accumulated in equity are transferred to the income statement in the periods when the hedged item affects profit or loss (for
instance, when the forecast sale that is hedged takes place). However, when the forecast transaction that is hedged results in the
recognition of a non-financial asset (for example, inventory) or a non-financial liability, the gains and losses previously deferred in equity
are transferred from equity and included in the measurement of the initial cost or carrying amount of the asset or liability.
When a hedging instrument expires or is sold, terminated or exercised, or when a hedge no longer meets the criteria for hedge
accounting, any cumulative gain or loss existing in equity at that time remains in equity and is recognised when the forecast transaction
is ultimately recognised in the income statement. When a forecast transaction is no longer expected to occur, the cumulative gain or
loss that was reported in equity is immediately transferred to the income statement.
(viii) Net investment in a foreign operation
Where effective, foreign exchange differences relating to foreign currency transactions hedging a net investment in a foreign operation,
together with any related income tax, are transferred to the exchange fluctuation reserve on consolidation. The ineffective portion is
recognised in the income statement.
Upon disposal of the foreign operation the cumulative amount of any gain or loss existing in equity is transferred to the income
statement and recognised as part of the gain or loss on disposal of the foreign operation.
Amcor Limited and its controlled entities
Notes to the financial statements
30 June 2010
Page 15
Note 1. Summary of Significant Accounting Policies (continued)
(j) Financial instruments (continued)
Embedded derivatives
Embedded derivatives are separated from the host contract and accounted for separately if the economic characteristics and risks of
the host contract and the embedded derivative are not closely related. Changes in the fair value of separable embedded derivatives
are recognised immediately in profit or loss.
(k) Equity
(i) Contributed Equity
Ordinary shares are classified as equity. Incremental costs directly attributable to the issue of new shares or the exercise of options are#p#分页标题#e#
recognised as a deduction from equity, net of any related income tax benefit. Incremental costs directly attributable to the issue of new
shares for the acquisition of a business are not included in the cost of the acquisition as part of the purchase consideration
Dividends on ordinary shares are recognised as a liability in the period in which they are declared.
(ii) Reserves
Available-for sale revaluation reserve
Changes in the fair value of investments, such as equities and available-for-sale financial assets, are taken to the revaluation reserve,
as described in note 1(j)(iii). Amounts are recognised in the income statement when the associated asset is disposed of or impaired.
Cash flow hedge reserve
The hedging reserve comprises the effective portion of the cumulative net change in the fair value of cash flow hedging instruments
related to hedged transactions that have not yet occurred.
Share-based payments reserve
The share-based payments reserve is used to recognise the fair value of options and rights recognised as an expense.
Exchange fluctuation reserve
Exchange differences arising on translation of foreign controlled operations are taken to the exchange fluctuation reserve, as described
in note 1(c). The relevant position of the reserve is recognised in the income statement when a foreign operation is disposed of.
(l) Inventories
Raw materials, work in progress and finished goods are valued at the lower of cost and net realisable value. The cost of inventories is
based on the first-in, first-out principle or weighted average cost formula and includes expenditure incurred in acquiring the inventories
and bringing them to their existing location and condition. In respect of manufacturing inventories and work in progress, cost includes
an appropriate proportion of production fixed and variable overheads incurred in the normal course of business. Cost may also include
transfers from equity of any gain or loss on qualifying cash flow hedges of foreign currency purchases of inventories.
Net realisable value is the estimated selling price in the ordinary course of business, less the estimated costs of completion and selling
expenses.
(m) Property, plant and equipment
Property, plant and equipment are stated at cost less accumulated depreciation and impairment. Cost includes expenditure that is
directly attributable to the acquisition of the item including borrowing costs that are related to the acquisition, construction or production
of a qualifying asset. Cost also may include transfers from equity of any gain or loss on qualifying cash flow hedges of foreign currency
purchases of property, plant and equipment.
Subsequent costs are included in the asset’s carrying amount or recognised as a separate asset, as appropriate, only when it is
probable that future economic benefits associated with the item will flow to the consolidated entity and the cost of the item can be#p#分页标题#e#
measured reliably. All other repairs and maintenance are charged to the income statement during the financial period in which they are
incurred.
Property, plant and equipment, excluding freehold land, are depreciated at rates based upon their expected useful lives using the
straight-line method. Land is not depreciated. Depreciation rates used for each class of asset for the current and comparative periods
are as follows:
• Buildings between 1% - 5% • Land improvements between 1% - 3%
• Finance leased assets between 4% - 20% • Plant and equipment between 3% - 25%
Depreciation methods, residual values and useful lives are reassessed, and adjusted if appropriate, at each reporting date.
If an asset’s carrying amount is greater than its estimated recoverable amount (refer note 1(p)), the asset is immediately written down to
its recoverable amount.
Gains and losses on disposals are determined by comparing proceeds with the carrying amount of the disposed asset and are included
in the income statement in the period the disposal occurs and are recognised net within ‘other income’ in the income statement.
Amcor Limited and its controlled entities
Notes to the financial statements
30 June 2010
Page 16
Note 1. Summary of Significant Accounting Policies (continued)
(n) Leased assets
Leases under which the consolidated entity assumes substantially all the risks and benefits of ownership are classified as finance
leases. Upon initial recognition, the leased asset is measured at an amount equal to the lower of the fair value of the leased asset and
the present value of the minimum lease payments. The corresponding rental obligations, net of finance charges, are included in other
short-term and long-term payables. Subsequent to initial recognition, the asset is depreciated over the shorter of the asset’s useful life
and the lease term, unless it is reasonably certain that ownership will be obtained by the end of the lease term where it is depreciated
over the period of the expected use which is the useful life of the asset.
Other leases are operating leases and are not recognised on the consolidated entity’s statement of financial position.
(o) Intangible assets
Goodwill
Goodwill arises on the acquisition of subsidiaries and associates and represents the difference between the cost of a business
combination over the consolidated entity’s interest in the net fair value of the identifiable assets, liabilities and contingent liabilities
acquired. When the excess is negative it is recognised immediately in profit or loss.
Goodwill is not amortised; instead goodwill is tested for impairment annually or more frequently if events or changes in circumstances
indicate that it might be impaired, and is carried at cost less any accumulated impairment losses. Goodwill is allocated to cashgenerating#p#分页标题#e#
units for the purpose of impairment testing, refer note 17.
In respect of equity accounted investments, the carrying amount of goodwill is included in the carrying amount of the investment.
Other intangible assets
Other intangible assets are measured at cost less accumulated amortisation and accumulated impairment losses, except for those
identified as having indefinite useful lives which are not amortised.
(i) Product development
Expenditure on product research activities is recognised in the income statement in the period in which the expenditure is incurred.
Expenditure on development activities associated with product development and innovation is capitalised if the product is technically
and commercially feasible, future economic benefits are probable and the consolidated entity intends to and has adequate resources
available to complete the development.
Capitalised development expenditure is amortised on a straight-line basis over the period of time during which the benefits are
expected to arise, typically not exceeding ten years.
(ii) Computer software
Expenditure on significant commercial development, including major software applications and associated systems, is capitalised and
amortised on a straight-line basis over the period of time during which the benefits are expected to arise, typically between three to ten
years.
Software costs are capitalised as intangible assets if they are separable or arise from contractual or other legal rights and it is probable
that the expected future economic benefits attributable to the asset will flow to the consolidated entity, and the cost of the asset can be
measured reliably.
Where software is internally generated, only the costs incurred in the development phase are capitalised and these are amortised on a
straight-line basis over the period of time during which the benefits are expected to arise, typically a period not exceeding ten years.
Software costs which are incurred in the research phase are expensed.
(iii) Customer relationships
Customer relationships acquired as part of business combinations are recognised separately from goodwill, and carried at fair value at
the date of acquisition less accumulated amortisation and impairment losses. Amortisation is calculated on a straight line basis over
the estimated useful life of 20 years.
(p) Impairment
Non-financial assets
The recoverable amount of the consolidated entity’s non-financial assets, excluding inventories, deferred tax assets and defined benefit
assets are reviewed at each reporting date to determine whether there is any indication of impairment. If any such indication exists, the
asset is tested for impairment by comparing its recoverable amount to its carrying amount.
In relation to goodwill and intangible assets that have indefinite useful lives or assets that are not ready for use, impairment testing is#p#分页标题#e#
completed at each reporting date, or more frequently if events or changes in circumstances indicate that they might be impaired.
In testing for impairment the recoverable amount is estimated for an individual asset or, if it is not possible to estimate the recoverable
amount for the individual asset, the recoverable amount of the cash generating unit (CGU) to which the asset belongs. CGUs are the
smallest identifiable group of assets that generate cash flows that are largely independent from the cash flows of other assets or group
of assets. Each CGU is no larger than an operating segment.
Amcor Limited and its controlled entities
Notes to the financial statements
30 June 2010
Page 17
Note 1. Summary of Significant Accounting Policies (continued)
(p) Impairment (continued)
Non-financial assets (continued)
The recoverable amount of an asset or a CGU is the greater of fair value less costs to sell and value in use. In assessing value in use,
the estimated future cash flows are discounted to their present value using a pre-tax discount rate that reflects the risks specific to the
asset or CGU and the market’s current assessment of the time value of money. An impairment loss is recognised in the income
statement if the carrying amount of an asset or a CGU exceeds its recoverable amount. Impairment losses recognised in respect of
CGUs are allocated first to reduce the carrying amount of any goodwill allocated to the CGU (group of CGUs) and then, to reduce the
carrying amount of the other assets in the CGU (group of CGUs) on a pro rata basis.
Impairment losses recognised in respect of goodwill are not reversed. Impairment losses recognised in prior periods in respect of other
assets are assessed at each reporting date for any indications that the impairment loss has decreased or may no longer exist. The
impairment loss is reversed if there has been a change in the estimates used to determine the recoverable amount of the asset and is
reversed only to the extent that the carrying amount of the asset does not exceed the carrying amount that would have been
determined, net of amortisation or depreciation, had no impairment loss been recognised.
Financial assets
Financial assets are assessed at each reporting period to determine whether there is any objective evidence that they are impaired. A
financial asset is considered to be impaired if there is objective evidence which indicates that there has been a negative effect on the
estimated future cash flows of that asset. Individually significant financial assets are tested for impairment on an individual basis. The
remaining financial assets are assessed in groups which share similar credit risk characteristics.
Impairment losses in respect of a financial asset measured at amortised cost are calculated as the difference between the carrying
amount and the present value of the estimated future cash flows discounted at the original effective interest rate. An impairment loss in#p#分页标题#e#
respect of an available-for-sale financial asset is measured as the difference between the acquisition cost and the current fair value
when there is a significant or prolonged decline in the fair value of a financial asset below its cost.
Impairment losses are recognised in the income statement. Any cumulative loss in respect of an available-for-sale financial asset
recognised previously in equity is transferred to the income statement when the impairment is recognised.
Impairment losses are only reversed if the reversal can be objectively related to an event occurring after the impairment loss was
recognised. For financial assets that are measured at amortised cost the reversal is recognised in the income statement. For
available-for-sale financial assets that are equity securities, the reversal is recognised directly in equity.
Use of estimates and judgements
The determination of impairment for non-financial assets, financial assets, goodwill and other intangible assets involves the use of
judgements and estimates that include, but are not limited to, the cause, timing and measurement of the impairment.
Management is required to make significant judgements concerning the identification of impairment indicators, such as changes in
competitive positions, expectations of growth, increased costs of capital, and other factors that may indicate impairment such as a
business restructuring. In addition, management is also required to make significant estimates regarding future cash flows and the
determination of fair values when assessing the recoverable amount of an asset (or group of assets). Inputs into these valuations
require assumptions and estimations to be made about forecast earnings before interest and tax and related future cash flows, growth
rates, applicable discount rates, useful lives and residual values.
The judgements, estimates and assumptions used by management in assessing impairment are management’s best estimates based
on current and forecast market conditions. Changes in economic and operating conditions impacting these assumptions could result in
changes in the recognition of impairment charges in future periods.
(q) Financial guarantee contracts
Financial guarantee contracts are recognised as financial liabilities at the date the guarantee is issued. Liabilities arising from financial
guarantee contracts, including Company guarantees of subsidiaries through deeds of cross guarantee, are initially recognised at fair
value and subsequently at the higher of the amount determined in accordance with the consolidated entity’s provisions accounting
policy (refer note 1(r)) and the amount initially recognised less cumulative amortisation.
The fair value of the financial guarantee is determined as the present value of the difference in net cash flows between the contractual
payments under the debt instrument and the payments that would be required without the guarantee, or the estimated amount that#p#分页标题#e#
would be payable to a third party for assuming the obligation.
(r) Provisions
A provision is recognised when there is a legal or constructive obligation as a result of a past event and it is probable that a future
sacrifice of economic benefits will be required to settle the obligation, and the amount can be reliably estimated.
Provisions are measured at the present value of management’s best estimate of the expenditure required to settle the present
obligation at the reporting date. The present value of a provision is determined by discounting the expected future cash flows at a pretax
rate that reflects the current market assessments of the time value of money and the risks specific to the liability.
Amcor Limited and its controlled entities
Notes to the financial statements
30 June 2010
Page 18
Note 1. Summary of Significant Accounting Policies (continued)
(r) Provisions (continued)
When some or all of the economic benefits required to settle a provision are expected to be recovered from a third party, the recovery
receivable is recognised as an asset when it is virtually certain that the recovery will be received.
Asset restoration and decommissioning
Where the consolidated entity has a legal or constructive obligation to restore a site on which an asset is located either through makegood
provisions included in lease agreements or decommissioning of environmental risks, the present value of the estimated costs of
dismantling and removing the asset and restoring the site is recognised as a provision with a corresponding increase to the related item
of property, plant and equipment.
At each reporting date, the liability is remeasured in line with changes in discount rates, estimated cash flows and the timing of those
cash flows. Any changes in the liability are added to or deducted from the related asset, other than the unwinding of the discount,
which is recognised as a financing cost in the income statement.
Insurance and other claims
The consolidated entity self-insures for risks associated with workers’ compensation. Provisions for workers' compensation, insurance
and other claims are recognised for claims received and claims expected to be received in relation to incidents occurring prior to
reporting date, measured based upon historical claim rates.
Estimated net future cash flows are based on the assumption that all claims will be settled and the weighted average cost of historical
claims adjusted for inflation will continue to approximate future costs.
Onerous contracts
A provision for onerous contracts is recognised when the expected benefits to be derived by the consolidated entity from a contract are
lower than the unavoidable costs of meeting the obligations under the contract. The provision is measured as the lower of the cost of
fulfilling the contract and any compensation or penalties arising from the failure to fulfil it and is recognised only in respect of the#p#分页标题#e#
onerous element of the contract. Where the effect of discounting is material, the provision is discounted to its present value.
Restructuring
A provision for restructuring is recognised when the consolidated entity has a detailed formal restructuring plan and the restructuring
has either commenced or has been publicly announced. Future operating costs in relation to the restructuring are not provided for.
Where a restructuring plan includes the termination of employees before normal retirement date, or when an employee accepts
voluntary redundancy, the consolidated entity recognises a provision for redundancy when it is demonstrably committed to either
terminating the employment of current employees according to a detailed formal plan without possibility of withdrawal. Payments falling
due greater than 12 months after reporting date are discounted to present value.
(s) Employee benefits
Wages, salaries, annual leave and sick leave
Liabilities for employee benefits such as wages, salaries, annual leave, sick leave and other current employee entitlements represent
present obligations resulting from employees' services provided to the reporting date and are calculated at undiscounted amounts
based on remuneration wage and salary rates, including related on-costs, such as workers compensation insurance and payroll tax,
that the consolidated entity expects to pay when the liabilities are settled.
Long service leave
Liabilities relating to long service leave are measured as the present value of estimated future cash outflows to be made in respect of
services provided by employees up to the reporting date. Consideration is given to expected future wage and salary levels, experience
of employee departures and periods of service.
Liabilities which are not expected to be settled within 12 months are discounted using market yields at the reporting date of high quality
corporate bonds. In countries where there is no deep market for corporate bonds (such as Australia), the market yields on government
bonds at the reporting date are used. The rates used reflect the terms to maturity and currency that match, as closely as possible, the
estimated future cash outflows.
Profit sharing and bonus plans
A liability and an expense is recognised for profit sharing and bonus plans, including benefits based on the future value of equity
instruments and benefits under plans allowing the consolidated entity to settle in either cash or shares. Entitlements under the
Employee Bonus Payment Plan (EBPP) are estimated and accrued at the end of the financial reporting period.
Share-based payments
The Company provides benefits to employees (including senior executives) of the consolidated entity in the form of share-based
payments, whereby employees render services in exchange for shares or rights over shares.
The Company maintains two Employee Share Schemes: the Employee Share Purchase Plan (ESPP) and the Employee Share/Option#p#分页标题#e#
Plan (ESOP). Both schemes were introduced in 1985, and have been subsequently amended and approved by shareholders at Annual
General Meetings. A number of sub-plans exist under the ESPP, including the Employee Incentive Share Plan (EISP) and the Senior
Executive Retention Share Plan (SERSP). Information relating to these schemes is set out in note 27.
Amcor Limited and its controlled entities
Notes to the financial statements
30 June 2010
Page 19
Note 1. Summary of Significant Accounting Policies (continued)
(s) Employee benefits (continued)
Share-based payments (continued)
The fair value of options granted is recognised as an employee benefit expense in the income statement with a corresponding increase
in the share-based payments reserve in equity and is spread over the vesting period during which the employees become
unconditionally entitled to the options. The fair value is measured at grant date taking into account market performance conditions, but
excludes the impact of any non-market vesting conditions (eg profitability and sales growth targets). Non-market vesting conditions are
included in the assumptions about the number of options that are expected to be exercisable. The fair value of options granted is
measured using the Black Scholes option pricing model that takes into account the exercise price, term of the option, impact of dilution,
the share price at grant date and expected price volatility of the underlying share, the expected dividend yield and the risk free interest
rate for the term of the option.
At each reporting period the fair value of the options granted is adjusted to reflect market vesting conditions, including revising the
estimate of the number of options that are expected to become exercisable. Any impact to the revision of an original estimate is
recognised in the income statement with a corresponding adjustment to the share-based payment reserve. The employee expense,
recognised each period, reflects the most recent estimate.
Upon exercise of the options, the balance of the share-based payments reserve, relating to those options, is transferred to share
capital.
The dilutive effect, if any, of outstanding options is reflected as additional share dilution in the computation of earnings per share (see
note 9).
Where loans are made to assist in the purchase of shares under a sub-plan, they are treated as a reduction in equity and not
recognised as a receivable and the repayments are recorded as contributions to share capital. Shares are held in trust until the loan is
settled.
When the Company grants options over its shares to employees of subsidiaries, the fair value at grant date is recognised as an
increase in the investment in subsidiaries, with a corresponding increase in equity over the vesting period of the grant.
(t) Retirement benefit obligations
Defined contribution plans#p#分页标题#e#
A defined contribution plan is a post-employment benefit plan under which the consolidated entity pays fixed contributions into a
separate entity and will have no legal or constructive obligation to pay further amounts. Obligations for contributions to defined
contribution funds are recognised as an expense in the income statement as they become payable.
Defined benefit plans
A defined benefit plan is a post-employment benefit plan other than a defined contribution plan. The consolidated entity’s liability or
asset recognised in the statement of financial position in respect of defined benefit plans and other post-retirement plans is calculated
separately for each plan and is measured as the present value of the future benefit that employees have earned in return for their
service in the current and prior periods, less the fair value of any plan assets and unrecognised past service costs.
Past service costs are recognised immediately in the income statement, unless the changes to the defined benefit plan are conditional
on the employees remaining in service for a specified period of time (the vesting period). In this case, the past service costs are
amortised on a straight-line basis over the vesting period. Actuarial gains and losses arising from experience adjustments and changes
in actuarial assumptions are charged or credited directly to in other comprehensive income.
Future taxes that are funded by the entity and are part of the provision of the existing benefit obligation (eg taxes on investment income
and employer contributions) are taken into account in measuring the net liability or asset.
The present value of the defined benefit obligation is based on expected future payments which arise from membership of the plan to
the reporting date, calculated annually by independent actuaries using the projected unit credit method. Consideration is given to
expected future wage and salary levels, experience of employee departures and periods of service. Expected future payments are
discounted using market yields on national government or investment grade corporate bonds at the reporting date, whose terms to
maturity and currency match, as closely as possible, the estimated future cash outflows.
When the calculation results in a benefit to the consolidated entity, the recognised asset is limited to the total of any unrecognised past
service cost and the present economic benefits available in the form of any future refunds from the plan or reductions in future
contributions to the plan, or on settlement of the plan liabilities.
Use of estimates and judgements
In determining the liability or asset that the consolidated entity recognises in the statement of financial position in respect of defined
benefit obligations and other post-retirement plans, the main categories of assumptions used in the valuations include: discount rate;
rate of inflation; expected return on plan assets; future salary increases; and medical cost trend rates (in the case of the post-retirement#p#分页标题#e#
health plans). Refer to note 23 for details of the key assumptions used this financial period in accounting for these plans. The
assumptions made have a significant impact on the calculations and any adjustments arising thereon.
Amcor Limited and its controlled entities
Notes to the financial statements
30 June 2010
Page 20
Note 1. Summary of Significant Accounting Policies (continued)
(t) Retirement benefit obligations (continued)
Use of estimates and judgements (continued)
If the discount rate were to differ by 10% from management’s estimates, the carrying amount of defined benefit obligations would be an
estimated $169.2 million lower or $63.5 million higher which would be recognised directly in other comprehensive income. A one-half
percentage point increase in the actuarial assumption regarding the expected return on plan assets would result in a decrease of $16.9
million in the defined benefit expense/obligation while a one-half percentage point decrease would result in an increase of $15.2 million
in the defined benefit expense/obligation for the year ended 30 June 2010 which would be recognised directly in other comprehensive
income as an actuarial gain/loss. In addition, changes in external factors, including fair values of plan assets could result in possible
future changes to the amount of the defined benefit obligations recognised in the statement of financial position.
(u) Discontinued operations
A discontinued operation is a component of the consolidated entity’s business that represents a separate major line of business or
geographical area of operations that has been disposed of or is held for sale. An operation would be classified as held for sale if the
carrying value of the assets of the operation will be principally recovered through a sale transaction rather than continuing use.
Classification as a discontinued operation occurs upon disposal or when the operation meets the criteria to be classified as held for
sale, if earlier. When an operation is classified as discontinued the comparative income statement is restated as if the operation had
been discontinued from the start of the comparative period.
(v) Earnings per share (EPS)
The consolidated entity presents basic and diluted earnings per share (EPS) data for its ordinary shares.
Basic earnings per share
Basic EPS is calculated by dividing the net profit attributable to ordinary shareholders of the Company for the reporting period, by the
weighted average number of ordinary shares of the Company for the reporting period, adjusted for any bonus issue.
Diluted earnings per share
Diluted EPS is calculated by adjusting the basic EPS for the effect of conversion to ordinary shares associated with dilutive potential
ordinary shares, which comprise share options granted to employees.
The diluted EPS weighted average number of shares includes the number of ordinary shares assumed to be issued for no#p#分页标题#e#
consideration in relation to dilutive potential ordinary shares. The number of ordinary shares assumed to be issued for no consideration
represents the difference between the number that would have been issued at the exercise price and the number that would have been
issued at the average market price.
The identification of dilutive potential ordinary shares is based on net profit or loss from continuing ordinary operations and is applied on
a cumulative basis, taking into account the incremental earnings and incremental number of shares for each series of potential ordinary
shares.
(w) Fair value estimation
The fair value of financial assets and financial liabilities must be estimated for recognition, measurement and disclosure purposes.
The fair value of financial instruments traded in active markets (such as publicly traded derivatives, and trading and available-for-sale
securities) is based on quoted market prices at the balance sheet date. The quoted market price used for financial assets held by the
consolidated entity is the current bid price. The quoted market price used for financial liabilities is the current ask price.
The fair value of financial instruments that are not traded in an active market (for example, over-the-counter derivatives) is determined
using valuation techniques. The consolidated entity uses a variety of methods, including discounted cash flows to calculate the fair
value of financial instruments. These calculations are performed using current market inputs which may include the use of interest and
forward exchange rates ruling at balance date. The consolidated entity makes assumptions concerning these valuations that are based
on market conditions existing at each balance date. Quoted market prices or dealer quotes for similar instruments are used for longterm
debt instruments held.
The carrying value of trade receivables and payables are assumed to approximate their fair values. The fair value of financial liabilities
for disclosure purposes is estimated by discounting the future contractual cash flows at the current market interest rate that is available
to the consolidated entity for similar financial instruments.
Amcor Limited and its controlled entities
Notes to the financial statements
30 June 2010
Page 21
Note 1. Summary of Significant Accounting Policies (continued)
(x) New accounting standards and interpretations not yet adopted
The following new or amended accounting standards and interpretations issued by the AASB have been identified as those which may
impact the consolidated entity in the period of initial application. They are available for early adoption at 30 June 2010, but have not been
applied in preparing this Financial Report:
• AASB 2009-5 Further Amendments to Australian Accounting Standards arising from the Annual Improvements Project (May 2009).
As part of the Annual Improvements Project (2009) the requirements of AASB 117 Leases regarding the classification of leases of land#p#分页标题#e#
were amended. Prior to the amendment AASB 117 generally required leases of land with indefinite useful life to be classified as
operating leases. The relevant guidance resulting in this accounting treatment has been removed under this amendment due to
concerns that it could lead to accounting that does not reflect the substance of an arrangement. Following the amendments, leases of
land are now classified as either ‘finance’ or ‘operating’ in accordance with the general principles of AASB 117. These amendments
will become applicable for the consolidated entity’s 30 June 2011 financial statements and are to be applied retrospectively to
unexpired leases at 1 July 2010. An assessment of the amendment is currently being performed, and as yet it is not possible to make
a reasonable estimate of the effect of the amendment until the review has been completed.
In addition, amendments made to AASB 139 Financial Instruments – Recognition and Measurement, by AASB 2009-5, regarding
embedded derivatives and hedge accounting have not been applied in preparing this financial report. The amendments provide
additional guidance with regards to embedded derivative accounting stating that if the cost of a prepayment option on a loan
reimburses the lender for an amount that exceeds the approximate present value of the lost interest for the remaining term of the
contract, then the economic characteristics and risks of the prepayment option are not closely related to the loan and the embedded
derivative would need to be separately recognised from the loan arrangement. In addition, the amendments clarify the scope
exemption within AASB 139 in relation to hedge accounting for contracts that exist between a buyer and seller in a business
combination to buy/sell a business at a future date. The scope amendment clarifies that the exception is restricted to forward
contracts, and not options, between a buyer and a seller that will result in a business combination at a future acquisition date and that
a forward should not be longer than a period normally expected to finalise such a transaction. These amendments will become
mandatory for the consolidated entity’s 30 June 2011 financial statements and its application is not expected to have any material
impact upon the financial results of the consolidated entity.
• AASB 2009-8 Amendments to Australian Accounting Standards – Group Cash-settled Share-based Payment Transactions (July
2009) clarifies the scope of AASB 2 Share-based Payment by requiring an entity that receives goods or services in a share-based
payment arrangement to account for those goods or services no matter which entity in the group settles the transaction, and no matter
whether the transaction is settled in shares or cash. The amendment will become mandatory for the consolidated entity’s 30 June
2011 financial statements. An assessment of the amendment is currently being performed, and as yet it is not possible to make a#p#分页标题#e#
reliable measure of the financial impact upon the consolidated entity.
• AASB 9 Financial Instruments and AASB 2009-11 Amendments to Australian Accounting Standards arising from AASB 9 (December
2009) set out the requirements for the classification and measurement of financial assets, resulting from the first part of Phase I of the
International Accounting Standard Board’s project to replace IAS 39 Financial Instruments – Recognition and Measurement. The
changes introduced by the new standard simplify the classification of financial assets into those to be carried at amortised cost, and
those to be carried at fair value. It also simplifies requirements for embedded derivatives and removes the tainting rules associated
with held-to-maturity assets.
The new standard removes the requirement to separate embedded derivatives from financial asset hosts. It requires a hybrid contract
to be classified in its entirety at either amortised cost or fair value. Most hybrid contracts with financial asset hosts will be measured at
fair value in their entirety. In addition, AASB 9 prohibits reclassifications except in rare circumstances when an entity changes its
business model for managing financial assets; in this case, an entity is required to reclassify affected financial assets prospectively.
In relation to accounting for investments in equity instruments, AASB 9 provides an opportunity to fair value these investments to other
comprehensive income, with no separate impairment test necessary, whilst taking dividends to income.
AASB 9 and the amendments will become mandatory for the consolidated entity’s 30 June 2014 financial statements. The potential
effect of AASB 9 and the amending standard on the financial results of the consolidated entity has yet to be determined.
Amcor Limited and its controlled entities
Notes to the financial statements
30 June 2010
Page 22
Note 1. Summary of Significant Accounting Policies (continued)
(x) New accounting standards and interpretations not yet adopted (continued)
• AASB 2009-14 Amendments to Australian Interpretation – Prepayments of Minimum Funding Requirement (December 2009) amends
Interpretation 14 The Limit on a Defined Benefit Asset, Minimum Funding Requirements and their Interaction. Interpretation 14
currently states that a surplus in a plan cannot be recognised as a reduction in future contributions if the future minimum funding
contribution required in respect of future accrual of benefits exceeds the future services cost calculated in accordance with AASB 119
Employee Benefits. Therefore, if the consolidated entity does not have an unconditional right to a refund or surplus the prepayment is
recognised as an expense. Under the amendments to Interpretation 14 such a prepayment would be recognised as an asset on the
basis that the entity has a future economic benefit from the prepayment in the form of reduced cash outflows in future years in which#p#分页标题#e#
the minimum funding requirement payments would otherwise be required. The amendment will become mandatory for the
consolidated entity’s 30 June 2012 financial statements. The potential effect of the amending standards on the financial results of the
consolidated entity has yet to be determined.
• Revised AASB 124 Related Party Disclosures (December 2009) simplifies and clarifies the definition of a related party, in particular:
- entities significantly influenced by one person and entities significantly influenced by a close member of the family of
that person are no longer related parties; and
- whenever a person or entity has joint control over a second entity and joint control or significant influence over a third
party, the second and third party are related to each other.
AASB 124 will become applicable to the consolidated entity for the 30 June 2012 financial year and its application is not expected to
have any impact upon the financial results of the consolidated entity.
• AASB 2010-2 Amendments to Australian Accounting Standards arising from Reduced Disclosure Requirements [AASB 1, 2, 3, 5, 7,
8, 101, 102, 107, 108, 110, 111, 112, 116, 117, 119, 121, 123, 124, 127, 128, 131, 133, 134, 136, 137, 138, 140, 141, 1050 &
1052 and Interpretations 2, 4, 5, 15, 17, 127, 129 & 1052]. This Standard makes amendments to many Australian Accounting
Standards, including Interpretations, to introduce reduced disclosure requirements to the pronouncements for application by
certain types of entities in preparing general purpose financial statements.
The amendments will become mandatory for the consolidated entity’s 30 June 2014 financial statements. The potential effect of the
amending standards on the financial results of the consolidated entity has yet to be determined.
• AASB 2010-3 Amendments to Australian Accounting Standards arising from the Annual Improvements Project
[AASB 3, AASB 7, AASB 121, AASB 128, AASB 131, AASB 132 & AASB 139]. This standard makes amendments:
- AASB 3 - Measuring of non controlling interests and unreplaced and voluntarily replaced share based
payment awards.
- AASB 3, 7, 132 and 139 - Transition requirements for contingent consideration from a business
combination that occurred before the effective date of the revised AASB 3 (2008).
- AASB 121, 128 and 131 - Transition requirements for amendments arising as a result of AASB 127
Consolidated and Separate Financial Statements.
The amendments will become mandatory for the consolidated entity’s 30 June 2011 financial statements. The potential effect of the
amending standards on the financial results of the consolidated entity has yet to be determined.
• 2010-4 Further Amendments to Australian Accounting Standards arising from the Annual Improvements Project
[AASB 1, AASB 7, AASB 101 & AASB 134 and Interpretation 13]. The standards make amendments to:#p#分页标题#e#
- AASB 1 - Accounting policy changes in the year of adoption, revaluation basis of deemed cost and use
of deemed cost for operations subject to rate regulation.
- AASB 7 - Clarification of disclosures.
- AASB 101 - Clarification of statement of changes in equity.
- AASB 134 Significant events and transactions.
- Interpretation 13 - Fair value of award credits.
The amendments will become mandatory for the consolidated entity’s 30 June 2012 financial statements. The potential effect of the
amending standards on the financial results of the consolidated entity has yet to be determined.
• AASB 1053 Application of Tiers of Australian Accounting Standards establishes a differential reporting framework consisting of two
tiers of reporting requirements for general purpose financial statements being Tier 1 - Australian Accounting Standards and Tier 2 -
Australian Accounting Standards - Reduced Disclosure Requirements. The new accounting standard will become mandatory for the
consolidated entity’s 30 June 2014 financial statements. The potential effect of AASB 1053 on the consolidated entity has yet to be
determined.
Amcor Limited and its controlled entities
Notes to the financial statements
30 June 2010
Page 23
(y) Parent entity financial information
The financial information for the parent entity Amcor Limited, disclosed in note 35, has been prepared on the same basis as the
consolidated financial statements, except as set out below:
Investments in subsidiaries
In the company’s financial statements, investments in subsidiaries are carried at cost less, where applicable, accumulated impairment
losses.
Tax consolidation regime
The Company and its wholly-owned Australian resident entities have formed a tax-consolidated group and are therefore taxed as a
single entity. The head entity within the tax-consolidated group is Amcor Limited.
The Company, and the members of the tax-consolidated group, recognise their own current tax expense/income and deferred tax
assets and liabilities arising from temporary differences using the ‘stand alone taxpayer’ approach by reference to the carrying amounts
of assets and liabilities in the separate financial statements of each entity and the tax values applying under tax consolidation.
In addition to its current and deferred tax balances, the Company also recognises the current tax liabilities (or assets), and the deferred
tax assets arising from unused tax losses and unused tax credits assumed from members of the tax-consolidated group, as part of the
tax-consolidation arrangement. Assets or liabilities arising under tax funding agreements with members of the tax-consolidated group
are recognised as amounts receivable or payable from the other entities within the tax-consolidated group.
Nature of tax funding agreement
The Company, as the head entity of the tax-consolidated group, in conjunction with the other members of the tax-consolidated group#p#分页标题#e#
has entered into a tax funding agreement which sets out the funding obligations of members of the tax-consolidated group in respect of
tax amounts. The tax funding agreement requires payment to/from the head entity equal to the current tax liability/asset assumed by
the head entity, resulting in the head entity recognising an intercompany receivable/payable equal to the amount of the tax liability/asset
assumed.
The agreement requires wholly-owned subsidiaries to make contributions to the Company for tax liabilities arising from external
transactions during the year. The contributions are calculated as if each subsidiary continued to be a stand alone taxpayer in its own
right. The contributions are payable annually and reflect the timing of the head entity’s obligation to make payments for tax liabilities to
the relevant tax authority.
Financial guarantee contracts
Where guarantees in relation to loans or other payables of subsidiaries or associates are provided for no compensation, the fair values
are accounted for as contributions and recognised as part of the cost of the investment in the financial statements of the Company.
Note 2. Segment Information
An operating segment is a component of the consolidated entity that engages in business activities from which it may earn revenues and
incur expenses, including revenues and expenses that relate to transactions with any of the consolidated entity’s other components.
All operating segment results are regularly reviewed by the consolidated entity’s chief operating decision maker which has been identified
as the Corporate Executive Team (‘CET’), which consists of the Managing Director and Chief Executive Officer, and other Senior
Executives of the consolidated entity. The CET provides the strategic direction and management oversight of the day to day activities of
the consolidated entity in terms of monitoring results, providing approval for capital expenditure decisions and approving strategic planning
for the businesses.
Segment information is presented in the financial statements in respect of business segments, which are the primary reporting
segments of the consolidated entity as they reflect the management and internal reporting structure of the consolidated entity during the
financial period. The secondary reporting segments have been classified based on significant countries in which the consolidated
entity’s business segments operate in.
Management has reassessed its operating segments during the current financial period as a result of the Alcan Packaging acquisition.
The acquisition has resulted in changes in the management and internal reporting structure within the consolidated entity and has
resulted in adjustments to the business segments as detailed below. Comparative segment information has been presented in
conformity with this reassessment, in accordance with AASB 8 Operating Segments.#p#分页标题#e#
(a) Description of segments
Reporting segments
The consolidated entity is organised on a global basis into the following reporting segments:
Amcor Rigid Plastics (formerly Amcor PET)
This segment manufactures Polyethylene Terephthalate (PET) packaging for a broad range of predominantly beverage and food products,
including carbonated soft drinks, water, juices, sports drinks, milk-based beverages, spirits and beer, sauces, dressings, spreads and
personal care items and plastic caps for a wide variety of applications.
Amcor Australasia and Packaging Distribution
During the current financial period the consolidated entity combined the Amcor Australasia and Packaging Distribution (formerly Sunclipse)
operating segments into one operating segment called Amcor Australasia and Packaging Distribution. This has resulted from the
deployment of the new strategic direction of this business announced in May 2010.
Amcor Limited and its controlled entities
Notes to the financial statements
30 June 2010
Page 24
(a) Description of segments (continued)
Business segments (continued)
This segment manufactures a wide range of products including corrugated boxes, cartons, folding cartons; aluminium beverage cans;
plastic and metal closures; glass wine bottles; multi-wall sacks; cartonboard; paper and recycled paper. The distribution operations of this
segment purchases, warehouses, sells and delivers a wide variety of products.
Amcor Flexibles
This reporting segment represents the aggregation of three operating segments of which each manufactures flexible and film packaging for
their respective industries. The operating segments are:
• Amcor Flexibles Europe and Americas which provides packaging for the food and beverage industry including confectionery,
coffee, fresh food and dairy and also provides packaging for the pharmaceutical sector including high value-added medical
applications.
• Amcor Tobacco Packaging which manufactures flexible packaging for specialty folding cartons for tobacco packaging.
• Amcor Flexibles Asia Pacific which provides packaging for the food and beverage industry including confectionery, coffee, fresh
food and dairy and also provides packaging for the pharmaceutical sector and home and personal care. The segment includes
the Australasia Flexibles operations which were integrated into this segment during the year and were previously included within
the Australasia and Packaging Distribution segment.
Management believe that it is appropriate to aggregate these three operating segments as one reporting segment due to the similarities in
the nature of each operating segment.
Other/Investments
This segment holds the consolidated entity’s associate investment in AMVIG Holdings Limited (AMVIG). AMVIG is principally involved in
the manufacture of tobacco packaging. In addition to holding the investment in AMVIG, this segment also includes the Specialty Packaging#p#分页标题#e#
operations acquired as part of the Alcan Packaging acquisition which manufactures glass tubing and speciality cartons and the Corporate
function.
Geographic segments
Although the consolidated entity’s operations are managed on a global basis, they operate in the following significant countries:
Australia
The areas of operations are principally corrugated boxes, cartons, folding cartons; aluminium beverage cans and household products;
flexible packaging; plastic and metal closures; glass wine bottles; multiwall sacks; cartonboard; paper and paper recycling.
United States of America
The Rigid Plastics, Australasia and Packaging Distribution and Flexibles business segments operate manufacturing and distribution
facilities in this country. Areas of manufacturing include production containers and preforms for a wide variety of food and beverage
applications and supply of PET containers to the personal care, household chemical and agro-chemical industries. Other areas also
include distribution and manufacturing of corrugated sheets and the manufacture of specialty folding cartons for tobacco packaging.
Singapore
This country includes the consolidated entity’s associate investment in AMVIG Holdings Limited (AMVIG), a company listed on the
Hong Kong Stock Exchange that manufactures tobacco packaging from its production facilities in China. The consolidated entity also
has manufacturing facilities that manufacture both flexible and tobacco packaging in Singapore.
(b) Notes to and forming part of the segment information
The segment information is prepared in conformity with the accounting policies of the consolidated entity as disclosed in note 1 and
Accounting Standard AASB 8 Operating Segments.
Segment revenues, expenses and results include transfers between segments. Such transfers between segments are generally priced
on an ‘arm’s length’ basis and are eliminated on consolidation.
Segment capital expenditure is the total cost incurred during the period to acquire segment assets that are expected to be used for
more than one period.
Amcor Limited and its controlled entities
Notes to the financial statements
30 June 2010
Page 25
Note 2. Segment Information (continued)
(c) Segment information provided to the CET
The following segment information was provided to the CET for the reporting segments for the financial period ended 30 June 2010 and 2009:
For the year ended 30 June
$ million 2 010 2 009 2 010 2 009 2 010 2 009 2 010 2 009 2 010 2 009 2 010 2 009 2 010 2 009
Reportable segment revenue
Revenue from external customers 2 ,576.5 3 ,250.8 2 ,786.6 2 ,985.3 4 ,407.9 3 ,299.3 7 8.5 - 9 ,849.5 9 ,535.4 - - 9 ,849.5 9 ,535.4
Inter-segment revenue 1 .4 - 1 3.6 ( 0.7) 1 3.9 4 .3 - - 2 8.9 3 .6 - - 2 8.9 3 .6
Total reportable segment revenue 2 ,577.9 3 ,250.8 2 ,800.2 2 ,984.6 4 ,421.8 3 ,303.6 7 8.5 - 9 ,878.4 9 ,539.0 - - 9 ,878.4 9 ,539.0#p#分页标题#e#
Reportable segment profit/(loss)
375.4 4 27.8 284.3 2 68.4 5 63.2 3 99.3 ( 9.0) ( 6.8) 1 ,213.9 1 ,088.7 - - 1,213.9 1 ,088.7
Depreciation and amortisation (162.6) (185.2) (123.1) (127.8) ( 166.1) ( 127.2) ( 2.9) ( 1.9) ( 454.7) ( 442.1) - - (454.7) ( 442.1)
212.8 2 42.6 161.2 1 40.6 3 97.1 2 72.1 ( 11.9) ( 8.7) 7 59.2 6 46.6 - - 759.2 646.6
( 41.9) ( 27.3) ( 2.9) ( 42.3) ( 72.2) ( 80.3) ( 138.4) ( 63.8) ( 255.4) ( 213.7) - 7 .6 ( 255.4) ( 206.1)
1 70.9 2 15.3 1 58.3 9 8.3 3 24.9 1 91.8 ( 150.3) ( 72.5) 5 03.8 4 32.9 - 7 .6 5 03.8 4 40.5
( 0.5) 2 .0 - - 0 .3 - 3 3.7 3 4.1 3 3.5 3 6.1 - - 3 3.5 3 6.1
0 .3 ( 0.3) ( 1.5) ( 7.1) 0 .8 ( 0.9) ( 0.1) ( 2.7) ( 0.5) ( 11.0) - - ( 0.5) ( 11.0)
- - ( 1.4) ( 1.5) ( 0.7) ( 3.4) - - ( 2.1) ( 4.9) - - ( 2.1) ( 4.9)
( 9.1) ( 11.0) ( 0.1) - ( 17.4) ( 14.0) ( 2.9) - ( 29.5) ( 25.0) - - ( 29.5) ( 25.0)
- - - - 0 .7 - - - 0 .7 - - - 0 .7 -
1 31.0 1 88.8 2 21.3 1 92.9 1 41.2 1 76.9 8 .0 5 .7 5 01.5 5 64.3 - - 5 01.5 5 64.3
3 25.4 3 16.2 3 64.4 3 60.0 1 ,008.2 4 09.4 1 21.2 3 4.1 1 ,819.2 1 ,119.7 - - 1 ,819.2 1 ,119.7
3 42.5 3 24.8 3 41.6 2 95.4 7 60.8 3 59.4 2 4.1 - 1 ,469.0 9 79.6 - - 1 ,469.0 9 79.6
( 607.2) ( 560.3) ( 427.4) ( 411.5) ( 1,301.6) ( 639.0) ( 128.7) ( 60.4) ( 2,464.9) ( 1,671.2) - - ( 2,464.9) ( 1,671.2)
6 0.7 8 0.7 2 78.6 2 43.9 4 67.4 1 29.8 1 6.6 ( 26.3) 8 23.3 4 28.1 - - 8 23.3 4 28.1
Average funds invested 1 ,666.7 2 ,101.9 1 ,604.6 1 ,713.4 2 ,302.7 1 ,848.1 5 55.7 5 21.8 6 ,129.7 6 ,185.2 - ( 1.7) 6 ,129.7 6 ,183.5
Investment in associates 2 .2 5 .5 - - 5 .0 - 4 57.0 5 03.5 4 64.2 5 09.0 - - 4 64.2 5 09.0
Profit/(loss) before interest and related income tax expense
Amcor Rigid Plastics Amcor Australasia and
Packaging Distribution
Significant items before related income tax expense
Profit/(loss) before interest, related income tax expense and significant items
Profit/(loss) before depreciation, amortisation, interest, related income tax
expense and significant items
Discontinued operations1 Consolidated continuing
Amcor Flexibles operations Consolidated
Impairment losses on property, plant and equipment and other non current
assets
Impairment losses - trade receivables
Share of net profits of associates
Other material non-cash items
Payables
Working capital
Acquisition of property, plant and equipment and intangibles
Receivables
Other/Investments
Inventory
Reversal of impairment losses on property, plant and equipment
Impairment losses - inventories
1 Discontinued operations include the Australasian Food Can and Aerosol business (previously reported in Amcor Australasia) that was sold on 31 October 2007, refer Note 3.
Amcor Limited and its controlled entities
Notes to the financial statements
30 June 2010
Page 26
Note 2. Segment Information (continued)#p#分页标题#e#
(d) Other segment information
i) Segment revenue
The revenue from external parties reported to the CET is measured in a manner consistent with that in the income statement.
Segment revenue reconciles from continuing operations as follows:
$ million 2010 2009
Reporting segment revenue
Total reporting segment revenue 9 ,878.4 9,539.0
Elimination of inter-segment revenue ( 28.9) (3.6)
Other income 8 0.9 87.2
Financial income 2 2.3 11.2
Consolidated revenue and other income from continuing operations 9 ,952.7 9,633.8
The table below shows sales revenue by product type to external customers:
$ million 2010 2009
Sales revenue by product
PET packaging 2 ,576.5 3,250.8
Flexible and film packaging 3 ,563.0 2,674.6
Fibre and paper-based packaging 1 ,579.7 1,697.5
Metal packaging 3 79.9 375.1
Tobacco packaging 8 44.9 624.7
Glass 2 36.7 168.0
Other 6 68.8 744.7
Consolidated sales revenue from continuing operations 9 ,849.5 9,535.4
ii) Segment profit/(loss)
Segment profit or loss reconciles from continuing operations as follows:
$ million 2010 2009
Reporting segment profit/(loss)
Profit before interest and related income tax expense 5 03.8 440.5
Elimination of discontinued operations - (7.6)
Financial income 2 2.3 11.2
Financial expense ( 205.7) (192.9)
Profit before related income tax expense 3 20.4 251.2
Amcor Limited and its controlled entities
Notes to the financial statements
30 June 2010
Page 27
Note 2. Segment Information (continued)
(d) Other segment information (continued)
Segment receivables reconcile from management working capital receivables as follows:
$ million 2010 2009
Working capital receivables
Total reportable segment working capital receivables 1 ,819.2 1,119.7
Financial instruments included for management reporting purposes ( 22.8) (8.7)
Financial instruments and other assets excluded for management reporting purposes 3 2.3 39.6
Intersegment elimination ( 41.9) (9.6)
Consolidated trade and other receivables 1 ,786.8 1,141.0
Segment payables reconciles from management working capital payables as follows:
$ million 2010 2009
Working capital payables
Total reportable segment working capital payables ( 2,464.9) (1,671.2)
Financial instruments included for management reporting purposes 2 3.8 16.2
Capital creditors and other payables excluded for management reporting purposes ( 65.4) (76.8)
Intersegment elimination 4 1.9 9.6
Consolidated trade and other payables ( 2,464.6) (1,722.2)
Segment acquisition of property, plant and equipment and intangibles reconciles from management as follows:
$ million 2010 2009
Acquisition of property, plant and equipment and intangibles
Total reportable segment acquisition of property, plant and equipment and intangibles 5 01.5 564.3#p#分页标题#e#
Movement in capital creditors ( 18.6) 28.2
Capitalised interest 1 1.3 5.3
Prepaid capital items ( 6.9) (1.4)
Capitalised asset restoration costs 4 .2 0.9
Other non cash adjustments 4 .4 5.0
Consolidated acquisition of property, plant and equipment and intangibles 4 95.9 602.3
Amcor Limited and its controlled entities
Notes to the financial statements
30 June 2010
Page 28
Note 2. Segment Information (continued)
(e) Geographical information
In presenting information on the basis of geographical segments, segment revenue is based on location of Amcor businesses:
$ million 2010 2009
Revenues
Australia 1 ,877.6 1,882.5
United States of America 2 ,849.1 3,319.9
Other 5 ,122.8 4,333.0
Consolidated sales revenue from continuing operations 9 ,849.5 9,535.4
Segments assets are based on the location of the assets:
Non-current assets
Australia 1 ,675.3 1,515.9
United States of America 2 ,021.1 1,919.2
Singapore 8 03.1 959.5
Other 2 ,845.0 1,569.6
Consolidated non-current assets for continuing operations 7 ,344.5 5,964.2
(f) Major Customer
No revenue from one customer is greater than 10% of the consolidated entity’s total revenues.
Amcor Limited and its controlled entities
Notes to the financial statements
30 June 2010
Page 29
Note 3. Discontinued Operations
(a) Description of events
30 June 2010
There has been no discontinued operations during the financial period to 30 June 2010 by the consolidated entity.
30 June 2009
During the financial period to 30 June 2009, the consolidated entity recognised an additional gain of $0.2 million (after tax) arising on
the sale of the Australasian Food Can and Aerosol business which occurred on 31 October 2007. In addition the consolidated entity
recognised an additional loss of $0.8 million (after tax) arising on the PET European sale which occurred on 29 June 2007.
Discontinued operations
$ million 2010 2009
(b) Financial performance
\Profits attributable to the discontinued operations were as follows:
Revenue (refer note 2) - -
Expenses - -
Operating profit before related income tax expense - -
Income tax expense - -
Operating profit after related income tax expense of discontinued operations - -
Profit on sale of discontinued operations before related income tax (expense)/benefit - 7.6
Income tax (expense)/benefit - (8.2)
Profit/(loss) on sale of discontinued operations after related income tax (expense)/benefit - (0.6)
Profit/(loss) from discontinued operations - (0.6)
Profit attributable to:
Owners of Amcor Limited - (0.6)
Non controlling interest - -
- (0.6)
cents
Basic earnings profit per share - (0.1)
Diluted earnings profit per share - (0.1)
(c) Cash flows from discontinued operations#p#分页标题#e#
Net cash outflow from operating activities - -
Net cash (outflow)/inflow from investing activities - (1.9)
Net cash outflow from financing activities - -
Net cash flow from discontinued operations - (1.9)
Amcor Limited and its controlled entities
Notes to the financial statements
30 June 2010
Page 30
Note 3. Discontinued Operations (continued)
(d) Carrying amounts assets and liabilities disposed of
For the financial period ended 30 June 2010 the carrying value of assets and liabilities disposed of were nil (2009: nil).
(e) Details of the sale of operations
Discontinued operations
$ million 2010 2009
Consideration received or receivable:
Cash and short-term deposits - -
Present value of deferred sales proceeds, net of transaction costs - -
Total disposal consideration - -
Less carrying amounts of net assets disposed of - -
Less share of exchange fluctuation reserve and foreign exchange translation - -
Profit on sale before related income tax benefit - -
Income tax benefit - -
Profit on sale after related income tax benefit of disposed operations - -
Settlement adjustments on prior year disposal, net of tax - (0.6)
Profit/(loss) on sale of discontinued operations after related income tax benefit - (0.6)
Net cash inflow/(outflow) on disposal
Cash and cash equivalents consideration - -
Cash (paid)/received from prior period disposals(1) - (1.9)
Reported in the cash flow statement - (1.9)
(1) Represents expenditure incurred in relation to the finalisation of prior period disposals.
Amcor Limited and its controlled entities
Notes to the financial statements
30 June 2010
Page 31
Note 4. Revenue, Other Income and Financial Income
$ million 2010 2009
Revenue from continuing operations
Sales revenue
Revenue from sale of goods 9 ,849.5 9,535.4
Other income
Dividend received/receivable
- Other 0 .6 0.8
Net gain on disposal of property, plant and equipment - 23.8
Net gain on disposal of businesses - 0.5
Net foreign exchange gains 1 8.8 9.2
Fair value gains on other financial assets designated at fair value through income statement 0 .9 0.3
Government grants 1 .6 2.2
Supplier early payment discounts 3 .1 4.6
Service income 5 .5 8.5
Other 4 4.8 37.3
Significant items (refer Note 6)
- Gain arising on disposal of listed equity securities 1.9 -
- Gain arising on Singen insurance claim 3.7 -
Total other income 8 0.9 87.2
Financial income
Interest received/receivable 2 2.3 11.2
Total financial income 2 2.3 11.2
Consolidated
Amcor Limited and its controlled entities
Notes to the financial statements
30 June 2010
Page 32
Note 5. Expenses
$ million 2010 2009
Profit before related income tax includes the following specific expenses#p#分页标题#e#
Depreciation:
- Property, plant and equipment 4 24.8 412.3
- Leased assets - 0.1
Amortisation:
- Other intangibles 2 9.9 29.7
Total depreciation and amortisation 4 54.7 442.1
Financial expenses
Interest paid/payable:
- Finance charges on leased assets 0 .4 0.2
- Unwind of discount on provisions 3 .2 3.7
- External 1 60.4 182.2
Amount capitalised ( 11.3) (5.3)
1 52.7 180.8
Borrowing costs 5 3.0 12.1
Total financial expenses 2 05.7 192.9
Net impairment of trade receivables 0 .5 11.0
Net write-down of inventories 2 .1 4.9
Provisions:
- Insurance/workers' compensation and other claims 5 4.6 37.4
- Onerous contracts 4 .0 0.1
- Asset restoration expense 0 .6 3.9
- Restructuring 6 5.5 52.1
Employee benefits expense:
- Wages and salaries 1 ,613.6 1,551.9
- Workers' compensation and other on-costs 3 28.1 168.4
- Superannuation costs - defined benefit funds 3 0.7 29.2
- Superannuation costs - accumulation funds 4 2.4 40.9
- Other employment benefits expense 7 .4 5.5
- Share based payments expense 2 4.4 15.9
Total employee benefits expense 2 ,046.6 1,811.8
Rental expense relating to operating leases:
- Minimum lease payments 8 2.4 98.9
- Contingent rentals 4 .6 6.0
Total rental expense relating to operating leases 8 7.0 104.9
Asset impairments 2 9.5 25.0
Net loss on sale of receivables 0 .4 0.7
Net loss on disposal of property, plant and equipment 1 .8 -
Consolidated
Amcor Limited and its controlled entities
Notes to the financial statements
30 June 2010
Page 33
Note 6. Significant Items
$ million 2010 2009
Significant items before related income tax expense
Income
Gain arising on disposal of listed equity securities 1 .9 -
Gain arising on Singen insurance claim 3 .7 -
Gains arising on disposal of Australasian Food Can and Aerosol business (refer Note 3)(2) - 0 .3
Gains arising on disposal of Rigid Plastics (formerly PET) European business (refer Note 3)(2) - 7 .3
5 .6 7 .6
Expense
Loss arising on equity issue of associate - AMVIG(1) - ( 3.7)
Rigid Plastics (formerly PET) business integration and restructure ( 8.2) ( 16.3)
Rigid Plastics (formerly PET) business acquisition costs ( 2.2) -
Australasia restructuring ( 1.4) ( 32.5)
Flexibles market sector rationalisation ( 16.8) ( 68.1)
Legal costs(3) ( 11.5) ( 23.4)
Legal claims settlement - ( 12.0)
Transaction and integration costs relating to Alcan Packaging acquisition ( 114.7) ( 29.7)
Costs to achieve synergies in relation to Alcan Packaging acquisition ( 58.6) -
Brazil tax amnesty program(4) ( 20.3) -
Asset impairments, net of reversals ( 27.3) ( 28.0)
( 261.0) ( 213.7)
Significant items before related income tax expense ( 255.4) ( 206.1)#p#分页标题#e#
Related income tax benefit/(expense) on significant items (where applicable)
Income tax expense on disposal of Australasian Food Can and Aerosol business(2) - ( 0.1)
Income tax expense on disposal of Rigid Plastics (formerly PET) Europe business(2) - ( 8.1)
Income tax benefit on Rigid Plastics (formerly PET) business integration and restructure 2 .6 1 .9
Income tax benefit on Rigid Plastics (formerly PET) business acquisition costs 0 .9 -
Income tax benefit on Australasia restructuring 0 .4 9 .2
Income tax benefit on Flexibles market sector rationalisation 2 .2 1 7.9
Income tax benefit on legal costs 3 .4 7 .6
Income tax benefit on legal claims settlement - 3 .6
Income tax benefit on recognition of US tax losses - 2 3.6
Income tax benefit on transaction and integration costs relating to Alcan Packaging acquisition 6 .5 -
Income tax benefit on costs to achieve synergies in relation to Alcan Packaging acquisition 5 .2 -
Income tax benefit on asset impairments, net of reversals 8 .0 1 .7
Income tax benefit on significant items 2 9.2 5 7.3
Significant items after related income tax benefit/(expense) ( 226.2) ( 148.8)
Significant items attributable to:
Members of Amcor Limited ( 226.2) ( 148.8)
Non controlling interest - -
( 226.2) ( 148.8)
Significant items before related income tax expense:
Continuing operations ( 255.4) ( 213.7)
Discontinued operations - 7 .6
( 255.4) ( 206.1)
Continuing operations 2 9.2 6 5.5
Discontinued operations - ( 8.2)
2 9.2 5 7.3
Continuing operations ( 226.2) ( 148.2)
Discontinued operations - ( 0.6)
( 226.2) ( 148.8)
Significant items after related income tax benefit/(expense) attributed to:
Related income tax benefit/(expense) on significant items:
Consolidated
(1) The amount represents the decrease in the consolidated entity’s share of the associate’s net worth, as a result of share issues and share buy-backs undertaken by the associate,
refer Note 14.
(2) The amount recognised in 2009 represents settlement adjustments in relation to prior year disposals.
(3) Legal costs include costs of the consolidated entity and others associated with defence and settlement of claims arising with respect to various ACCC matters.
(4) The consolidated entity has elected to participate in a Federal Tax Amnesty Program (‘Program’) offered by the Brazil Federal Tax Authority to settle certain indirect tax
obligations. This amount represents the present value of the amount the consolidated entity will be required to pay for its participation in this Program. Refer to Note 30.
Amcor Limited and its controlled entities
Notes to the financial statements
30 June 2010
Page 34
Note 6. Significant Items (continued)
The following table represents a segmental analysis of significant items before income tax benefit/(expense), refer Note 2:#p#分页标题#e#
2010
$ million Redundancy
Plant
closure
Impairment of
assets Other(1) Total
Rigid Plastics ( 0.6) (8.2) ( 9.1) - (24.0) (41.9)
Australasia and Packaging
Distribution - (1.3) - - (1.6) (2.9)
Flexibles (35.1) (16.3) ( 15.9) - (4.9) (72.2)
Other/Investments ( 7.0) (11.9) ( 2.3) - (117.2) (138.4)
Total (42.7) (37.7) ( 27.3) - (147.7) (255.4)
2009
$ million Redundancy
Plant
closure
Impairment
of assets Other(1) Total
Rigid Plastics ( 4.6) (11.7) ( 11.0) - - (27.3)
Australasia and Packaging
Distribution (15.9) (14.4) - - (12.0) (42.3)
Flexibles (21.0) (45.6) ( 12.2) (1.4) (0.1) (80.3)
Other/Investments - - ( 4.8) - (59.0) (63.8)
Discontinued Operations - - - 7.6 - 7.6
Total (41.5) (71.7) ( 28.0) 6.2 (71.1) (206.1)
Disposal of
controlled
entities
Disposal of
controlled
entities
(1) The amounts in ‘other’ relate to transaction and integration costs of $114.7 million as a result of the Alcan acquisition, $20.3 in relation to the Brazil tax amnesty
program, $11.5 million for legal costs and $2.2 million in relation to Rigid Plastics acquisition costs, $3.7 million in income for the Singen insurance claim and $1.9
million in income in relation to Amcor’s disposal of investments in K Laser and Univacco.
In 2009, ‘Other’ included legal costs $23.4 million, legal claims settlements $12.0 million, a loss of $3.7 million relating to the equity issues of an associate, the
expensing of transaction costs relating to business acquisitions of $29.7 million and other costs totalling $2.3 million.
Amcor Limited and its controlled entities
Notes to the financial statements
30 June 2010
Page 35
Note 7. Income Tax Expense
$ million 2010 2009
(a) Recognised in the income statement
Current tax (expense)/benefit
Current period ( 63.6) (112.4)
Adjustments relating to current tax expense of prior periods ( 20.6) 5.0
Tax losses, tax credits and temporary differences not recognised for book in prior years now
recouped 6 .2 10.9
Total current tax (expense)/benefit ( 78.0) (96.5)
Deferred tax benefit/(expense)
Origination and reversal of temporary differences ( 40.9) 54.5
Change in applicable tax rates 0 .1 1.0
Total deferred tax (expense)/benefit ( 40.8) 55.5
Total income tax expense ( 118.8) (41.0)
Less income tax expense attributable to discontinued operations - (8.2)
Total income tax expense attributable to continuing operations ( 118.8) (32.8)
Deferred income tax benefit/(expense) included in income tax expenses comprises:
Increase in deferred tax assets 7 1.3 90.2
Increase in deferred tax liabilities ( 112.1) (34.7)
Deferred income tax (expense)/benefit included in income tax (note 16) ( 40.8) 55.5
Consolidated#p#分页标题#e#
Amcor Limited and its controlled entities
Notes to the financial statements
30 June 2010
Page 36
Note 7. Income Tax Expense (continued)
$ million 2010 2009
(b) Numerical reconciliation of income tax (expense)/benefit to prima facie tax
payable
Profit from continuing operations 3 20.4 251.2
Profit from discontinued operations - 7.6
Profit before related income tax expense 3 20.4 258.8
Tax at the Australian tax rate of 30% (2009 - 30%) ( 96.1) (77.6)
Tax effect of amounts which are not deductible/(taxable) in calculating taxable income:
Net operating items non-deductible/non-assessable for tax 1 1.7 (6.6)
Goodwill tax adjustments 1 .4 -
Net significant items non-deductible/non-assessable for tax ( 47.4) 4.5
Capital structures 3 6.0 38.4
Tax losses, tax credits and temporary differences not recognised for book in prior years now
recouped 6 .2 10.9
Effect of local tax rate change ( 0.4) (0.7)
( 88.6) (31.1)
Under provision in prior period ( 30.2) (2.0)
Foreign tax rate differential - (7.9)
Total income expense ( 118.8) (41.0)
Less income tax expense attributable to discontinued operations - (8.2)
Total income tax expense attributable to continuing operations ( 118.8) (32.8)
Consolidated
$ million
Before Tax
Tax
(expense)/
benefit
Net of tax Before Tax Tax (expense)/
benefit Net of tax
Income tax on other comprehensive income
Net change in fair value of available-for-sale financial assets 2.2 - 2.2 (0.8) - (0.8)
Net change in fair value of available-for-sale financial assets
reclassified to profit or loss (2.6) -
(2.6)
2.2 - 2.2
Effective portion of changes in fair value of cash flow hedges (166.3) 1.2 (165.1) (13.1) 4.3 (8.8)
Net change in fair value of cash flow hedges reclassified to profit
or loss 14.5 (1.3) 13.2 7.7 (7.0) 0.7
Net change in fair value of cash flow hedges reclassified to nonfinancial
assets 158.3 (0.3) 158.0 (0.5) - (0.5)
Exchange differences on translation of foreign operations (633.3) 103.5 (529.8) 314.1 (53.9) 260.2
Net investment hedge of foreign operations 283.9 (97.4) 186.5 (194.5) 58.1 (136.4)
Exchange differences on translating foreign operations reclassified
to profit or loss 0.2 - 0.2 - - -
Actuarial (losses)/gains on defined benefit plans (103.3) 27.6 (75.7) (40.1) 13.3 (26.8)
Share of other comprehensive income of associates (50.5) - (50.5) 13.9 - 13.9
Other comprehensive income for the period, net of tax (496.9) 33.3 (463.6) 88.9 14.8 103.7
(c) Income tax recognised in other comprehensive income
2010 2009
Amcor Limited and its controlled entities
Notes to the financial statements
30 June 2010
Page 37
Note 7. Income Tax Expense (continued)
$ million 2010 2009
(d) Amounts recognised directly in equity#p#分页标题#e#
Deferred tax benefit recognised directly in equity 3 3.3 14.8
Total income tax benefit recognised directly in equity 3 3.3 14.8
Consolidated
Note 8. Auditors’ Remuneration
$ thousand 2010 2009
Audit services
PwC Australian firm:
Audit and review of financial reports 3 ,091 2,472
Other regulatory audit services 1 8 71
Equity raising assurance services - 1,130
Overseas PwC firms:
Audit and review of financial reports 2 ,240 2,626
Equity raising assurance services 2 ,086 -
Other regulatory audit services 1 ,717 2,071
Other assurance services 3 45 42
Total remuneration for audit and other assurance services 9,497 8,412
Other services
PwC Australian firm:
Taxation services 4 89 1,453
Transaction related taxation advise and due diligence 8 ,387 4,537
Other advisory services 1 ,423 132
Overseas PwC firms:
Taxation services 1 ,546 2,621
Completion audits and acquisition due diligence 9 90 6,640
Total remuneration for other services 1 2,835 15,383
Total auditors' remuneration 2 2,332 23,795
Consolidated
Amcor Limited and its controlled entities
Notes to the financial statements
30 June 2010
Page 38
Note 9. Earnings per Share
cents 2010 2009
Restated1
Basic earnings per share
From continuing operations attributable to the ordinary equity holders of the Company 1 5.8 24.1
From discontinued operations - (0.1)
Attributable to the ordinary equity holders of the Company 1 5.8 24.0
Diluted earnings per share
From continuing operations attributable to the ordinary equity holders of the Company 1 5.6 24.0
From discontinued operations - (0.1)
Attributable to the ordinary equity holders of the Company 1 5.6 23.9
1 The 2009 earnings per share figures have been restated to reflect the bonus element of the Entitlement Offer that was completed in September 2009.
$ million 2010 2009
Restated1
(a) Reconciliation of earnings used in calculating earnings per share
Basic earnings per share
Profit from continuing operations 2 01.6 218.4
Profit from continuing operations attributable to non controlling interests ( 18.6) (6.1)
Profit from continuing operations attributable to the ordinary equity holders of the Company used in
calculating basic earnings per share 1 83.0 212.3
Profit/(loss) from discontinued operations - (0.6)
Profit attributable to the ordinary equity holders of the Company used in calculating basic earnings
per share 1 83.0 211.7
Diluted earnings per share
Profit from continuing operations attributable to the ordinary equity holders of the Company used in
calculating diluted earnings per share 1 83.0 212.3
Profit/(loss) from discontinued operations - (0.6)
Profit attributable to the ordinary equity holders of the Company used in calculating diluted earnings#p#分页标题#e#
per share 1 83.0 211.7
Number million
(b) Weighted average number of shares used as denominator
Weighted average number of ordinary shares for basic earnings per share 1 ,161.4 880.8
Effect of partly-paid shares - -
Effect of employee options 9 .1 5.4
Weighted average number of ordinary shares and potential ordinary shares for diluted earnings per
share 1 ,170.5 886.2
1 The 2009 earnings per share figures have been restated to reflect the bonus element of the Entitlement Offer that was completed in September 2009.
(c) Information concerning classification of securities
In the calculation of basic earnings per share, only ordinary shares have been included in the calculation. The following securities have
been classified as potential ordinary shares and their effect included in diluted earnings per share as at 30 June 2010:
- ordinary shares;
- partly-paid shares; and
- employee options and rights
Amcor Limited and its controlled entities
Notes to the financial statements
30 June 2010
Page 39
Note 9. Earnings per Share (continued)
(d) Details of securities
(i) Partly-paid ordinary shares
Partly-paid ordinary shares do not carry the right to participate in dividends and have not been recognised in ordinary share equivalents
in the determination of basic earnings per share. Amounts uncalled on partly-paid shares and calls in arrears are treated as the
equivalent of options to acquire ordinary shares and are included as potential ordinary shares in the determination of diluted earnings
per share.
(ii) Options and rights
Options and rights granted to employees under the Amcor Limited employee share/option and rights plans are considered to be
potential ordinary shares and have been included in the determination of diluted earnings per share to the extent to which they are
dilutive. The options and rights have not been included in the determination of basic earnings per share. Details relating to the options
and rights plans are set out in Note 27.
Note 10. Cash and Cash Equivalents
$ million 2010 2009
Cash on hand and at bank 2 44.2 132.8
Short-term deposits 4 .1 41.8
Deposits at call 1 8.8 14.0
Total cash and cash equivalents 2 67.1 188.6
Consolidated
Short-term deposits and deposits at call for the consolidated entity bear floating interest rates between 0.01% and 15.0% (2009: 0.02%
and 9.02%). Details regarding interest rate risk, foreign currency risk, credit risk and the fair value of cash and cash equivalents are
disclosed in Note 26.
Note 11. Trade and Other Receivables
$ million 2010 2009
Trade receivables(1) 1 ,546.1 959.8
Less provision for impairment losses ( 35.8) (22.0)
1 ,510.3 937.8
Other receivables(2) 1 97.6 142.2
Other loans 6 .8 11.4
Prepayments 7 2.1 49.6
Total current trade and other receivables 1 ,786.8 1,141.0#p#分页标题#e#
Consolidated
Details regarding interest rate risk, foreign currency risk, credit risk and fair values of receivables are disclosed in note 26.
(1) Impaired trade receivables
The consolidated entity has recognised a loss of $0.5 million (2009: $11.0 million) in respect of impaired trade receivables during the financial year ended 30 June
2010. The loss has been included in ‘general and administration’ expenses in the income statement.
(2) Other receivables
These amounts generally arise from transactions outside the usual operating activities of the consolidated entity. Interest may be charged at commercial rates
where the terms of repayment exceed six months. Collateral is not normally obtained.
Amcor Limited and its controlled entities
Notes to the financial statements
指导essay,指导report essay-Preliminary Final report
30 June 2010
Page 40
Note 12. Inventories
$ million 2010 2009
Raw materials and stores at cost 6 11.8 375.3
Work in progress at cost 1 77.3 88.5
Finished goods at cost 6 03.8 459.8
1 ,392.9 923.6
Raw materials and stores at net realisable value 1 4.7 18.1
Work in progress at net realisable value 1 1.8 4.6
Finished goods at net realisable value 4 9.6 33.3
7 6.1 56.0
Total inventories 1 ,469.0 979.6
Consolidated
Write-downs of inventories to net realisable value recognised as an expense during the financial year ended 30 June 2010 amounted to
$2.1 million (2009: $4.9 million). The expense has been included in ‘cost of sales’ expenses in the income statement. As at 30 June
2010, no inventory of the consolidated entity is pledged as security over any borrowing (2009: nil).
Note 13. Other Financial Assets
$ million 2010 2009
Current
Derivative financial instruments:
Forward exchange contracts 1 .4 -
Hedge contracts for cash settled bonus and retention payment plans ('Equity Share Swap
contracts') 1 .2 0.9
2 .6 0.9
Derivative financial instruments - cash flow hedges:
Forward exchange contracts 2 0.0 7.3
Commodity contracts 0 .2 0.5
2 0.2 7.8
Total current other financial assets 2 2.8 8.7
Consolidated
Amcor Limited and its controlled entities
Notes to the financial statements
30 June 2010
Page 41
Note 13. Other Financial Assets (continued)
$ million 2010 2009
Non-current
Investments in companies listed on stock exchanges at fair value 4 .5 7.7
Investments in companies not listed on stock exchanges at cost 1 .2 0.2
5 .7 7.9
Derivative financial instruments:
Contracts for cash settled employee share plan options ('American' style contracts) - 0.2#p#分页标题#e#
Contracts for cash settled bonus and retention payment plans ('Equity Share Swap contracts') 1 .0 0.4
Forward exchange contracts 0 .1 -
Other non current financial assets 0 .4 -
1 .5 0.6
Loans and other receivables 2 8.1 33.8
Total non-current other financial assets 3 5.3 42.3
Consolidated
Details regarding the interest rate risk, foreign currency risk, commodity price risk, employee share plan risk and fair values of the other
financial assets are disclosed in Note 26.
In relation to the cash settled Employee Share Plan Options, the Employee Bonus Payment Plan and the Senior Executive Retention
Payment Plan, the consolidated entity is exposed to movements in the value of the underlying ordinary shares of Amcor Limited. The
consolidated entity has hedged its exposure by entering into cash settled equity share option or equity share swap contracts that mirror
the terms and conditions of the employee benefit. Refer to Note 26(a)(iv) for details of the expiry or vesting date (if applicable), the
outstanding option/share hedged contract positions and the hedged price of the contracts as at 30 June 2010.
Note 14. Equity Accounted Investments
The consolidated entity accounts for investments in associates using the equity method and has no investments in joint ventures.
The consolidated entity has the following equity accounted investments:
2010 2009
Name of associate Principal activity Incorporated Reporting date % %
AMVIG Holdings Limited Tobacco packaging Cayman Islands 31 December 46.0 38.9
Silgan White Cap de Venezuela S.A. Metal and plastic closures Venezuela 31 December 37.0 37.0
Amcor Chengdu Co. Limited Flexible Packaging China 31 December 40.0 -
Ordinary share ownership
interest
Amcor Limited and its controlled entities
Notes to the financial statements
30 June 2010
Page 42
Note 14. Equity Accounted Investments (continued)
Financial information related to equity accounted investments
$ million 2010 2009
Revenues (100%) 495.0 5 99.7
Expenses (100%) (433.6) ( 520.5)
Profit (100%) 61.4 7 9.2
Current assets (100%) 679.1 4 26.7
Non-current assets (100%) 560.1 9 72.2
Total assets (100%) 1,239.2 1 ,398.9
Current liabilities (100%) 230.4 3 09.5
Non-current liabilities (100%) 120.3 1 48.6
Total liabilities (100%) 350.7 4 58.1
Net assets reported by equity accounted investments 888.5 9 40.8
Consolidated entity's share of net assets equity accounted 464.2 5 09.0
Consolidated
Results of equity accounted investments
Consolidated entity share of profits before taxes 40.6 4 3.6
Consolidated entity share of income tax expense (7.1) ( 7.5)
Consolidated entity share of profits after tax 33.5 3 6.1
Commitments
$ million 2010 2009
Share of capital commitments contracted but not provided for or payable:#p#分页标题#e#
Within one year 2.0 4 .4
Between one and five years - -
More than five years - -
2.0 4 .4
Within one year 1.5 1 .3
Between one and five years 5.3 4 .4
More than five years 6.0 6 .6
12.8 1 2.3
Share of other expenditure commitments contracted but not provided for or payable (including operating lease
commitments):
Consolidated
Acquisitions and disposals
AMVIG Holdings Limited (AMVIG)
On 12 February 2010, at an Extraordinary General Meeting, the independent shareholders of AMVIG approved resolutions for the
acquisition of the non controlling interest in Famous Plus Group Limited, the connected transaction involving the disposal of Brilliant
Circle Holdings International Limited and the proposed off-market share repurchase and cancellation. Following implementation of
these transactions the consolidated entity’s interest in AMVIG increased from 38.9% to 46.0%. The consolidated entity’s share of the
gain as a result of the disposal was $5.3m.
Amcor Limited and its controlled entities
Notes to the financial statements
30 June 2010
Page 43
Note 14. Equity Accounted Investments (continued)
Acquisitions and disposals (continued)
Amcor Chengdu Co. Limited (Chengdu)
As part of the acquisition of certain parts of the Alcan Packaging Operations on 2 February 2010, the consolidated entity acquired a
40% interest in Amcor Chengdu Co. Limited (Chengdu). The net assets of the 40% interest in Chengdu acquired were $1.8 million on 2
February 2010.
Reporting date
The balance dates for AMVIG, Silgan White Cap de Venezuela S.A. and Amcor Chengdu Co. Limited are 31 December.
The balance date of AMVIG is different to that of the consolidated entity due to commercial reasons and the listing requirements of this
entity on the Hong Kong Stock Exchange. In determining the consolidated entity’s share of profits of AMVIG for the financial year
ended 30 June 2010, the consolidated entity has used the latest publicly available financial information, being the unaudited interim
results announcement for the six months to 30 June 2010, which was made to the Hong Kong Stock Exchange on 19 August 2010.
This result, in conjunction with the audited results for the 12 months to 31 December 2009, has formed the basis for the accounting for
the consolidated entity’s share of profits recognised for the 12 months ended 30 June 2010.
Silgan White Cap de Venezuela S.A. (‘Silgan White Cap’) balance date is different to that of the consolidated entity due to commercial
reasons in aligning its balance date to its ultimate controlling parent company, Silgan Holdings Inc., which is listed on NASDAQ. The
30 June 2010 unaudited management accounts of Silgan White Cap have formed the basis of the financial information used in
determining the consolidated entity’s share of profits for the 12 months ended 30 June 2010.#p#分页标题#e#
Amcor Chengdu Co. Limited’s balance date is different to that of the consolidated entity due to legal entities within China being required
to follow the statutory fiscal year specified by the State Board. The 30 June 2010 unaudited management accounts of Chengdu have
formed the basis of the financial information used in determining the consolidated entity’s share of profits for the period ended 30 June
2010.
Amcor Limited and its controlled entities
Notes to the financial statements
30 June 2010
Page 44
Note 15. Property, Plant and Equipment
Consolidated
$ million Land
Land
improvements Buildings
Plant and
equipment
Assets under
construction
Finance
leases Total
Cost
Balance at 1 July 2009 193.3 23.2 867.1 6 ,529.5 1 50.8 5.2 7,769.1
Additions for the period 1.8 - 37.6 2 65.3 1 74.3 - 479.0
Disposals during the period (3.5) - (4.7) ( 138.7) ( 0.3) - (147.2)
Additions through business acquisitions 112.8 4.0 445.9 7 30.4 - 17.4 1,310.5
Other transfers 1.9 0.1 68.4 7 9.3 ( 149.7) - -
Effect of movements in foreign exchange rates (19.1) (1.6) (86.4) ( 379.6) - (2.2) (488.9)
Balance at 30 June 2010 287.2 25.7 1,327.9 7 ,086.2 1 75.1 20.4 8,922.5
Balance at 1 July 2008 203.5 27.5 817.6 6 ,171.5 4 6.6 4.9 7,271.6
Additions for the period 2.4 0.1 34.8 3 86.9 1 44.9 - 569.1
Disposals during the period (20.0) (5.3) (50.3) ( 326.8) ( 0.6) - (403.0)
Additions through business acquisitions - - - 2 .6 - - 2.6
Disposal of businesses and controlled entities - - - ( 14.2) - - (14.2)
Other transfers 0.8 0.1 20.3 1 6.5 ( 37.7) - -
Effect of movements in foreign exchange rates 6.6 0.8 44.7 2 93.0 ( 2.4) 0.3 343.0
Balance at 30 June 2009 193.3 23.2 867.1 6 ,529.5 1 50.8 5.2 7,769.1
Accumulated depreciation and impairment
Balance at 1 July 2009 (0.2) (6.8) (264.5) ( 3,696.6) - (5.1) (3,973.2)
Depreciation charge - (1.1) (42.6) ( 381.1) - - (424.8)
Disposals during the period - - 1.3 1 25.7 - - 127.0
Impairment loss - - (0.9) ( 28.6) - - (29.5)
Reversal of impairment loss - - 0.2 0 .5 - - 0.7
Effect of movements in foreign exchange rates - 0.4 8.3 1 68.5 - 0.7 177.9
Balance at 30 June 2010 (0.2) (7.5) (298.2) ( 3,811.6) - (4.4) (4,121.9)
Balance at 1 July 2008 (0.2) (7.3) (224.3) ( 3,410.6) - (4.8) (3,647.2)
Depreciation charge - (0.7) (33.9) ( 377.7) - (0.1) (412.4)
Disposals during the period - 1.5 11.8 2 48.9 - - 262.2
Disposal of businesses and controlled entities - - - 1 1.4 - - 11.4
Impairment loss - - (3.7) ( 19.1) - - (22.8)
Effect of movements in foreign exchange rates - (0.3) (14.4) ( 149.5) - (0.2) (164.4)
Balance at 30 June 2009 (0.2) (6.8) (264.5) ( 3,696.6) - (5.1) (3,973.2)
Carrying amounts
Balance at 30 June 2010 287.0 18.2 1,029.7 3 ,274.6 1 75.1 16.0 4,800.6#p#分页标题#e#
Balance at 30 June 2009 193.1 16.4 602.6 2 ,832.9 1 50.8 0.1 3,795.9
Amcor Limited and its controlled entities
Notes to the financial statements
30 June 2010
Page 45
Note 15. Property, Plant and Equipment (continued)
(a) Non-current assets pledged as security
At 30 June 2010, property, plant and equipment with a carrying value of $48.6 million (2009: $12.9 million) was provided as security for
certain interest-bearing borrowings. Refer to Note 20 for more information on non-current assets pledged as security by the
consolidated entity.
(b) Non-current asset impairments
30 June 2010
During the year ended 30 June 2010, the consolidated entity recorded impairments of property, plant and equipment totalling $29.5
million within general and administration expense in the income statement. The impairments were recognised in the following
segments:
• Amcor Rigid Plastics recognised an impairment of $9.1 million within North America relating to a number of items of property,
plant and equipment that were identified as idle through their current ‘streamlining’ process. The recoverable amount of these
items was assessed based upon management’s historical experience of the sale of similar assets, less costs to sell.
• Amcor Flexibles recognised an impairment of $17.4 million of which the majority relates to restructuring activities in the UK,
Europe, USA and Asia as a result of the integration with Alcan Packaging. Of the $17.4 million impairment, $0.3 million
related to buildings while $17.1 million related to items of property plant and equipment. The recoverable amount of these
items was assessed based upon management’s historical experience of the sale of similar assets, less costs to sell.
• Other/Investments includes the Specialty Packaging operations acquired as part of the Alcan Packaging acquisition which
manufactures glass tubing and speciality cartons and the Corporate function. This business recognised an impairment of $1.7
million in relation to items of plant and equipment and $0.6 million in relation to buildings as a result of the closure of the Baie
d’Urfe plant. An impairment of $0.6 million was also recognised in the Glass tubing business.
• Australasia and Packaging Distribution recognised an impairment of $0.1 million in relation to items of property, plant and
equipment.
30 June 2009
During the year ended 30 June 2009, the consolidated entity recorded impairments of property, plant and equipment totalling $22.8
million within general and administration expense in the income statement. The impairments were recognised in the following
segments:
• Amcor Rigid Plastics (formerly Amcor PET) recognised an impairment of $11.0 million within Latin America relating to a
number of items of property, plant and equipment that has been identified as idle as the result of the termination of various onsite#p#分页标题#e#
lease agreements. The recoverable amount of these items was assessed based upon management’s historical
experience of the sale of similar assets, less costs to sell.
• Amcor Flexibles recognised an impairment of $9.9 million relating to restructuring activities undertaken in the United Kingdom
and across Europe with regards to the repositioning of the business, as announced in April 2007. Of the $9.9 million
impairment, $3.7 million related to buildings while $6.2 million related to items of property plant and equipment. The
recoverable amount of the buildings was assessed based on a valuation provided by an external independent valuer, less
estimated costs to sell. Of the $6.2 million impairment recognised in relation to property, plant and equipment, $2.0 million
was a write off of certain identified items while the remainder of the impairment was determined based on the recoverable
amount of the individual items using management’s historical experience of the sale of similar assets, less estimated costs to
sell.
In addition to the impairments identified in relation to the repositioning activities of Amcor Flexibles, an impairment charge of
$1.9 million was recognised in relation to obsolete items of property, plant and equipment. The recoverable amount of these
items were assessed based upon the consolidated entity’s historical experience of the sale of similar assets in the relevant
market place, less selling costs.
(c) Non-current asset impairment reversals
During the year ended 30 June 2010 Amcor Flexibles recognised a reversal of impairment of $0.7 million that had previously been
recognised on property, plant and equipment as part of the repositioning of the business as announced in April 2007. Two plants within
this original process have subsequently been sold and therefore the impairment reversed.
During the year ended 30 June 2009, the consolidated entity did not reverse any impairment that had previously been recognised with
regards to items of property, plant and equipment.
Amcor Limited and its controlled entities
Notes to the financial statements
30 June 2010
Page 46
Note 16. Deferred Tax Assets and Liabilities
(a) Recognised deferred tax assets and liabilities
Deferred tax assets and liabilities are attributable to the following:
Consolidated
$ million Assets Liabilities Net Assets Liabilities Net
Property, plant and equipment - ( 294.0) ( 294.0) - ( 280.3) ( 280.3)
Impairment of trade receivables 5 .0 - 5 .0 4 .7 - 4 .7
Valuation of inventories 4 6.1 ( 4.6) 4 1.5 3 1.2 ( 2.6) 2 8.6
Employee benefits 1 12.6 - 1 12.6 8 5.0 - 8 5.0
Provisions 6 3.3 - 6 3.3 5 3.6 - 5 3.6
Financial instruments at fair value 1 67.2 ( 269.9) ( 102.7) 1 1.0 ( 25.8) ( 14.8)
Tax losses carried-forward 2 43.0 - 2 43.0 1 22.3 - 1 22.3
Accruals and other items 4 8.0 ( 151.7) ( 103.7) 4 9.6 ( 96.0) ( 46.4)#p#分页标题#e#
Tax assets/(liabilities) 6 85.2 ( 720.2) ( 35.0) 3 57.4 ( 404.7) ( 47.3)
Set off of tax ( 271.7) 2 71.7 - ( 194.5) 1 94.5 -
Net deferred tax asset/(liability) 4 13.5 ( 448.5) ( 35.0) 1 62.9 ( 210.2) ( 47.3)
2010 2009
(b) Movement in temporary differences during the year
Consolidated
Net asset/
(liability)
Net asset/
(liability)
$ million at 1 July at 30 June
2010
Property, plant and equipment (280.3) 1.0 - (50.4) 35.7 (294.0)
Impairment of trade receivables 4.7 0.1 - 0.6 (0.4) 5.0
Valuation of inventories 28.6 16.3 - 0.9 (4.3) 41.5
Employee benefits 85.0 (3.5) 27.6 16.9 (13.4) 112.6
Provisions 53.6 8.1 - 3.3 (1.7) 63.3
Financial instruments at fair value (14.8) (121.9) 5.7 28.9 (0.6) (102.7)
Tax losses carried-forward 122.3 87.8 - 31.6 1.3 243.0
Accruals and other items (46.4) (28.7) - (17.3) (11.3) (103.7)
(47.3) (40.8) 33.3 14.5 5.3 (35.0)
2009
Property, plant and equipment (283.2) 24.7 - - (21.8) (280.3)
Impairment of trade receivables 6.1 (1.4) - - - 4.7
Valuation of inventories 45.8 (21.0) - - 3.8 28.6
Employee benefits 75.1 (6.5) 13.3 0.1 3.0 85.0
Provisions 50.1 (0.3) - - 3.8 53.6
Financial instruments at fair value 20.1 (36.5) 1.5 - 0.1 (14.8)
Tax losses carried-forward 68.8 53.9 - - (0.4) 122.3
Accruals and other items (77.3) 42.6 - - (11.7) (46.4)
(94.5) 55.5 14.8 0.1 (23.2) (47.3)
Recognised in
income
statement
Recognised
in equity
Exchange
difference
Acquired
balances
Amcor Limited and its controlled entities
Notes to the financial statements
30 June 2010
Page 47
Note 16. Deferred Tax Assets and Liabilities (continued)
(c) Unrecognised deferred tax assets and liabilities
(i) Unrecognised deferred tax assets
Deferred tax assets have not been recognised in respect of the following items:
$ million 2010 2009
Unused tax losses for which no deferred tax asset has been recognised 6 06.5 488.9
Potential tax benefits at applicable rates of tax losses 1 75.7 154.3
Deductible temporary differences 3 7.3 53.1
Total unrecognised deferred tax assets 2 13.0 207.4
Consolidated
Unused tax losses have been incurred by entities in foreign jurisdictions. Deferred tax assets have not been recognised in respect of
these items because it is not probable that future taxable profit will be available against which the consolidated entity can utilise the
benefits.
(ii) Unrecognised deferred tax liabilities
Deferred tax liabilities have not been recognised in respect of temporary differences arising as a result of the translation of the financial
statements of the consolidated entity’s investments in subsidiaries and associates. The deferred tax liability will only arise in the event of
disposal of the subsidiary or associate, and no such disposal is expected in the foreseeable future.#p#分页标题#e#
Unremitted earnings of Amcor’s international operations are considered to be reinvested indefinitely and relate to the ongoing
operations. Upon distribution of any earnings in the form of dividends or otherwise, Amcor may be subject to withholding taxes payable
to various foreign countries; however, such amounts are not considered to be significant. As Amcor controls when the deferred tax
liability will be incurred and is satisfied that it will not be incurred in the foreseeable future, the deferred tax liability has not been
recognised.
Amcor Limited and its controlled entities
Notes to the financial statements
30 June 2010
Page 48
Note 17. Intangible Assets
Consolidated
$ million
Product
development
Computer
software Goodwill
Customer
relationships
Other
intangible
assets Total
Cost
Balance at 1 July 2009 9 .3 236.0 1,391.2 - 22.3 1,658.8
Additions through internal activities - 10.6 - - - 10.6
Additions for the period - 5.7 - - 0.6 6 .3
Disposals during the period - (0.5) - - - ( 0.5)
Additions through business acquisitions - 7.0 316.9 215.0 - 538.9
Effect of movements in foreign exchange rates ( 1.3) (14.5) (160.5) (21.1) ( 2.1) (199.5)
Balance at 30 June 2010 8 .0 244.3 1,547.6 193.9 20.8 2,014.6
Balance at 1 July 2008 8 .7 214.9 1,209.9 - 20.6 1,454.1
Additions through internal activities - 27.2 - - - 27.2
Additions for the period - 3.7 - - 2 .3 6 .0
Disposals during the period - (22.7) - - ( 2.0) (24.7)
Additions through business acquisitions - 0.1 10.6 - - 10.7
Effect of movements in foreign exchange rates 0 .6 12.8 170.7 - 1 .4 185.5
Balance at 30 June 2009 9 .3 236.0 1,391.2 - 22.3 1,658.8
Accumulated amortisation and impairment
Balance at 1 July 2009 ( 7.9) (120.6) (13.4) - (17.8) (159.7)
Amortisation charge ( 0.4) (24.6) - (4.4) (0.5) (29.9)
Disposals during the period - 0.5 - - - 0.5
Effect of movements in foreign exchange rates 1 .2 6.4 (0.1) 2.5 - 10.0
Balance at 30 June 2010 ( 7.1) (138.3) (13.5) ( 1.9) (18.3) (179.1)
Balance at 1 July 2008 ( 6.3) (110.7) (13.3) - (14.6) (144.9)
Amortisation charge ( 1.1) (24.8) - - (3.8) (29.7)
Disposals during the period - 22.4 - - 1.9 24.3
Effect of movements in foreign exchange rates ( 0.5) (7.5) (0.1) - (1.3) (9.4)
Balance at 30 June 2009 ( 7.9) (120.6) (13.4) - (17.8) (159.7)
Carrying amounts
Balance at 30 June 2010 0.9 106.0 1,534.1 192.0 2.5 1,835.5
Balance at 30 June 2009 1.4 115.4 1,377.8 - 4.5 1,499.1
As at 30 June 2010 the consolidated entity does not hold any indefinite life intangible assets, other than goodwill.
Amcor Limited and its controlled entities
Notes to the financial statements
30 June 2010
Page 49
Note 17. Intangible Assets (continued)
(a) Amortisation and impairment charge#p#分页标题#e#
During the year ended 30 June 2010 and 2009, the consolidated entity did not recognise any impairments relating to intangible assets.
(b) Impairment tests for goodwill
For the purpose of impairment testing, goodwill acquired in a business combination is allocated to cash generating units or groups of
cash generating units (CGUs) according to the level at which management monitors goodwill.
The goodwill amounts allocated below are tested annually or semi-annually if there are indicators of impairment, by comparison with the
recoverable amount of each CGU or group of CGU’s assets. Recoverable amounts for CGUs are measured at the higher of fair value
less costs to sell and value in use. Value in use is calculated from cash flow projections for five years using data from the consolidated
entity’s latest internal forecasts. The key assumptions for the value in use calculations are those regarding discount rates, growth rates
and expected changes in margins.
The forecasts used in the value in use calculations are management estimates in determining income, expenses, capital expenditure
and cash flows for each asset and CGU. Changes in selling prices and direct costs are based on past experience and management’s
expectation of future changes in the markets in which the consolidated entity operates. Cash flows beyond the five year period are
extrapolated using estimated growth rates.
The following table presents a summary of the goodwill allocation and the key assumptions used in determining the recoverable amount
of each CGU:
2 010 2009 2010 2009 2010 2009
CGU $ million $ million % % % %
Rigid Plastics
North America 518.3 555.8 9.8 9.2 3.0 3.0
Latin America 194.0 207.5 13.4 15.3 3.0 3.0
Australasia and Packaging Distribution
Fibre Packaging Division 48.2 48.2 10.4 11.3 2.0 -
Beverage Can Group 14.8 14.7 10.4 11.3 2.0 -
Other 0.8 0.8 - - - -
North America Distribution 81.5 87.2 9.8 9.2 - 2.0
North America Corrugator 9.3 9.9 9.8 9.2 - 2.0
North America Multi Purpose Packaging 22.6 24.2 9.8 9.2 - 2.0
Flexibles
Flexibles Europe and Americas 98.3 - 8.8 - - -
Food 139.9 171.9 8.8 9.5 - -
Healthcare 164.1 201.7 8.8 9.5 - -
Tobacco Packaging 201.6 15.2 8.8 9.5 - -
Flexibles Asia Pacific 40.7 40.7 10.4 11.3 3.0 -
1,534.1 1,377.8
Goodwill Allocation Discount Rate Growth Rate
The discount rate used in performing the value in use calculations reflects the consolidated entity’s weighted average cost of capital, as
adjusted for specific risks relating to each geographical region in which the CGUs operate. The pre-tax discount rates are disclosed
above.
The growth rate represents the average rate applied to extrapolate CGU cash flows beyond the five year forecast period. These growth
rates are determined with regard to the long term performance of each CGU in their respective market and are not expected to exceed#p#分页标题#e#
the long term average growth rates in the applicable market.
Amcor Limited and its controlled entities
Notes to the financial statements
30 June 2010
Page 50
Note 18. Other Non-Current Assets
$ million 2010 2009
Contract incentive payments(1) 6 5.3 46.3
Retirement benefit assets (note 23) 5 .3 0.4
Other non-current assets 1 44.8 72.2
Total other non current assets 2 15.4 118.9
Consolidated
(1) Contract incentives are provided to customers to secure long term sale agreements and are amortised over the period of the contractual arrangement.
Note 19. Trade and Other Payables
$ million 2010 2009
Current
Trade creditors 1 ,706.5 1,196.4
Deferred grant income 1 .1 1.9
Other creditors and accruals 7 57.0 523.9
Total current trade and other payables 2 ,464.6 1,722.2
Non-current
Secured creditors:
Other creditors 0 .1 -
Deferred grant income 1 7.2 21.6
Other unsecured creditors 1 2.9 9.9
Total non-current trade and other payables 3 0.2 31.5
Consolidated
Note 20. Interest-Bearing Liabilities
$ million Footnote 2010 2009
Current
Secured borrowings:
Bank loans (2) 8 .1 4.3
Lease liabilities (refer Note 31) (6) 3 .3 2.3
1 1.4 6.6
Unsecured borrowings:
Bank overdrafts (1) 6 4.7 131.3
Commercial paper (3) 1 04.7 62.9
Eurobond (10) 4 96.1 -
US$ notes (9) - 49.6
Bank loans (4), (5), (8) 6 62.5 692.7
Other loans (5) 3 9.3 13.0
1 ,367.3 949.5
Total current interest-bearing liabilities 1 ,378.7 956.1
Consolidated
Amcor Limited and its controlled entities
Notes to the financial statements
30 June 2010
Page 51
Note 20. Interest Bearing Liabilities (continued)
$ million Footnote 2010 2009
Non-current
Secured borrowings:
Bank loans 9 .2 -
Other loans (7) 3 .4 5.4
Lease liabilities (refer Note 31) (6) 1 6.4 -
2 9.0 5.4
Unsecured borrowings:
Bank loans (8) 3 89.2 689.3
US$ notes (9) 1 ,512.3 569.7
Eurobond (10) - 608.6
Other loans (5) 2 .0 2.7
1 ,903.5 1,870.3
Total non-current interest-bearing liabilities 1 ,932.5 1,875.7
Consolidated
$ million 2 010 2009
Reconciliation of consolidated net debt
- Current 1 ,378.7 956.1
- Non-current 1 ,932.5 1,875.7
Total interest bearing liabilities 3 ,311.2 2,831.8
- Cash and cash equivalents (refer Note 10) ( 267.1) (188.6)
Net debt 3 ,044.1 2,643.2
Details of the interest rate risk, foreign currency risk, committed and uncommitted facilities and fair value of interest bearing liabilities for
the consolidated entity are set out in Note 26.
(1) The consolidated entity has uncommitted bank overdraft facilities (both secured and unsecured) to a maximum of $211.1 million (2009: $247.2 million). As at
30 June 2010, the unused portions of the facilities were $146.4 million (2009: $115.9 million). The bank overdrafts are payable on demand and are subject to#p#分页标题#e#
annual review.
(2) Comprises loans secured over property, plant and equipment in overseas controlled entities to the extent of $8.1 million (2009: $4.3 million). The carrying
value of the pledged property is $8.1 million (2009: $4.3 million).
(3) Borrowings in commercial paper markets include:
Promissory Note Facility - $104.7 million (2009: $62.9 million)
This is an uncommitted promissory note facility of $600.0 million (2009: $600.0 million). This facility continues indefinitely until terminated by giving written
notice to the dealer panel members. As at 30 June 2010, there were $104.7 million in promissory notes outstanding with an average maturity of 19 days
(2009: $62.9 million).
US Commercial Paper Program - nil (2009: nil)
This is an uncommitted commercial paper program of US$400.0 million (2009: US$400.0 million). As at 30 June 2010 nil commercial paper was outstanding
(2009: nil).
(4) Various bank borrowings including:
Amcor Limited – $3.5 million (2009: $45.0 million) drawn under uncommitted at call facilities. Amounts borrowed under these facilities bear interest at the
overnight cash rate plus an applicable margin.
Amcor Limited/Amcor UK Finance Limited/Amcor Finance (USA) Inc. - $486.5 million (2009: $546.5 million) drawn under a US$750.0 million (2009: US$750.0
million) committed global syndicated multi-currency facility maturing June 2011.
Nil (2009: $194.4 million) drawn under a committed US$500.0 million (2009: US$500.0 million) 364 day global syndicated multi-currency facility supporting
uncommitted commercial paper program term maturing June 2011. Drawings are in various currencies and bear interest at the applicable BBSY or LIBOR rate
plus a credit margin.
Amcor Limited - $150.0 million (2009: $150.0 million) committed multi-currency facility maturing in September 2010. $150 million (2009: $142.8 million) drawn
under this facility are in various currencies and bear interest at the applicable BBSY or LIBOR rate plus an applicable credit margin.
(5) Comprises various funding facilities made available to subsidiary companies predominantly in Europe and North America.
Amcor Limited and its controlled entities
Notes to the financial statements
30 June 2010
Page 52
Note 20. Interest Bearing Liabilities (continued)
(6) Lease liabilities (other than liabilities recognised in relation to surplus space under non-cancellable operating leases) are effectively secured as the rights to the
leased assets recognised in the financial statements revert to the lessor in the event of default.
(7) Comprises loans secured over property, plant and equipment in Australian and overseas controlled entities to the extent of $3.4 million (2009: $5.4 million).
The carrying value of the pledged property is $8.9 million (2009: $8.6 million).
(8) Principally relates to bank borrowings in:
Amcor Limited - $275.0 million (2009: $350.0 million) committed multi-currency facility maturing in August 2012. $104.2 million (2009: $336.9 million) drawn#p#分页标题#e#
under this facility are in various currencies and bear interest at the applicable BBSY, HIBOR or LIBOR rate plus an applicable credit margin.
Amcor Limited – $255.9 million committed multi-currency facility maturing in May 2013. $131.3 million (2009: $62.0 million) drawn under this facility and bears
interest at the applicable LIBOR, EURIBOR or HIBOR rate plus an applicable credit margin
(9) Represents US$460.0 million Amcor Limited senior unsecured guaranteed notes issued in the United States Private Placement market in 2002. The notes
have final bullet maturities between 2012 and 2017. US$850.0 million Amcor Finance USA senior unsecured guaranteed notes issued in the United States
Private Placement market in 2009. The notes have final bullet maturities between 2016 and 2021. Interest on these notes is payable semi-annually, at a fixed
rate.
(10) Represents €350.0 million Amcor Limited unsecured notes issued in the Eurobond market. The notes mature in March 2011 and pay an annual coupon of
4.25%. For the year ended 30 June 2010, the €350.0 million Amcor Limited unsecured notes are now classified as current unsecured borrowings.
Amcor Limited and its controlled entities
Notes to the financial statements
30 June 2010
Page 53
Note 21. Other Financial Liabilities
$ million 2010 2009
Current
Derivative financial instruments:
Forward exchange contracts 7 .7 5.1
7 .7 5.1
Derivative financial instruments - cash flow hedges:
Forward exchange contracts 7 .6 7.4
Commodity contracts 8 .5 3.7
1 6.1 11.1
Total current other financial liabilities 2 3.8 16.2
Non-current
Derivative financial instruments - cash flow hedges:
Forward exchange contracts 2 .3 -
Total non-current other financial liabilities 2 .3 -
Consolidated
Amcor Limited and its controlled entities
Notes to the financial statements
30 June 2010
Page 54
Note 22. Provisions
$ million
Employee
entitlements
Insurance and
other claims
Onerous
contracts
Asset
restoration Restructuring Other Total
Balance at 1 July 2009 129.2 97.7 1 3.4 5 3.2 35.5 0 .2 329.2
Provisions made during the period 49.9 54.6 4 .0 4 .8 65.5 0 .1 178.9
Payments made during the period (44.1) (23.0) ( 6.6) ( 2.1) (36.7) ( 0.2) (112.7)
Released during the period (1.5) (5.5) - ( 1.7) (0.1) - (8.8)
Additions through business acquisitions 1.2 40.2 1 5.6 2 5.6 18.9 0 .1 101.6
Unwinding of discount - 1.3 0 .3 1 .6 - - 3.2
Effect of movement in foreign exchange rate (2.0) 1.2 ( 2.1) ( 2.5) (3.1) - (8.5)
Balance at 30 June 2010 132.7 166.5 2 4.6 7 8.9 80.0 0 .2 482.9
Current 109.1 85.5 1 9.7 4 .6 52.6 0 .2 271.7
Non-current 23.6 81.0 4 .9 7 4.3 27.4 - 211.2
Balance at 1 July 2008 1 29.5 86.0 1 6.7 5 1.7 61.4 - 345.3
Provisions made during the period 5 3.9 37.4 0 .1 5 .2 52.1 0 .3 149.0#p#分页标题#e#
Payments made during the period ( 57.5) (14.6) ( 5.1) ( 5.7) (79.5) ( 0.1) (162.5)
Released during the period ( 0.6) (10.6) - ( 2.2) (0.8) - (14.2)
Disposal of businesses and controlled entities - - - - (0.7) - (0.7)
Additions through business acquisitions 0 .2 - - - - - 0.2
Unwinding of discount - - 0 .2 2 .0 1.5 - 3.7
Effect of movement in foreign exchange rate 3 .7 (0.5) 1 .5 2 .2 1.5 - 8.4
Balance at 30 June 2009 1 29.2 97.7 1 3.4 5 3.2 35.5 0 .2 329.2
Current 1 08.0 59.0 1 3.4 4 .8 18.9 0 .2 204.3
Non-current 2 1.2 38.7 - 48.4 16.6 - 124.9
Description of provisions
Employee entitlements
Employee entitlements include the liability for annual leave and long service leave of employees as well as any directors’ retirement
allowances.
Insurance and other claims
Insurance and other claims provisions include provisions for workers' compensation, insurance and other claims and are made for
claims received and claims expected to be received in relation to incidents occurring prior to 30 June 2010, based on historical claim
rates. Estimated net future cash flows are based on the assumption that all claims will be settled and the weighted average cost of
historical claims adjusted for inflation will continue to approximate future costs.
Onerous contracts
Onerous contract provisions relate to rental of land and buildings by Amcor Flexibles and Rigid Plastics business groups which are not
able to be fully used or sublet by the consolidated entity and certain customer and supply contracts acquired in the Alcan Packaging
acquisition. The provision reflects only the onerous element of these commitments.
Amcor Limited and its controlled entities
Notes to the financial statements
30 June 2010
Page 55
Note 22. Provisions (continued)
Asset restoration
Provisions for asset restoration or decommissioning relate to either make-good provisions included in lease agreements or
decommissioning costs associated with environmental risks for which the consolidated entity has a legal or constructive obligation.
Where lease agreements include requirements to return the property to its original condition, the consolidated entity has made a
provision based on an estimate of these costs.
On a number of sites, there are areas of contamination caused by past practice, many of which relate to operations prior to Amcor’s
ownership. The provision includes costs associated with the clean-up of sites it owns, or contamination that it caused, to enable ongoing
use of the land as an industrial property.
In addition, the consolidated entity recognises the environmental risks associated with underground storage tanks. The provision
includes costs associated with the decommissioning, removal or repair of any tanks which may fail integrity tests.
Restructuring provisions
The following tables provide a segmental analysis of the restructuring provision at the end of the reporting period:#p#分页标题#e#
$ million Amcor Flexibles
Amcor Rigid
Plastics
Australasia and
Packaging
Distribution Other Total
Balance at 1 July 2009 8 .4 2.0 23.8 1.3 35.5
Provisions made during the period 3 9.6 4.6 3.6 17.7 65.5
Payments made during the period ( 21.7) (5.3) (6.0) (3.8) (36.8)
Released during the period ( 0.1) - - - (0.1)
Additions through business acquisitions 1 6.6 1.1 - 1.2 18.9
Effect of movement in foreign exchange rate ( 2.6) (0.1) - (0.3) (3.0)
Balance at 30 June 2010 4 0.2 2.3 21.4 16.1 80.0
Current 3 0.5 1.5 4.8 15.8 52.6
Non-current 9 .7 0.8 16.6 0.3 27.4
Balance at 1 July 2008 2 9.6 - 31.3 0.5 61.4
Provisions made during the period 1 6.4 16.3 17.3 2.1 52.1
Payments made during the period ( 38.2) (14.2) (25.8) (1.3) (79.5)
Released during the period ( 1.0) - 0.2 - (0.8)
Disposal of business and controlled entities - - (0.7) - (0.7)
Unwinding of discount - - 1.5 - 1.5
Effect of movement in foreign exchange rate 1 .6 (0.1) - - 1.5
Balance at 30 June 2009 8 .4 2.0 23.8 1.3 35.5
Current 8 .4 2.0 7.2 1.3 18.9
Non-current - - 16.6 - 16.6
The Amcor Flexibles restructuring provision includes costs relating to activities undertaken with regards to the repositioning and market
sector rationalisation of the Amcor Flexibles European business, as announced by the consolidated entity in April 2007 as well as costs
associated with the realisation of expected synergies from the Alcan acquisition. The restructuring provision also includes costs in
relation to the closure of the Regents Park manufacturing plant.
During the period Amcor Rigid Plastics recognised and utilised restructuring provisions relating to activities associated with the
streamlining and reorganisation of operations in North America.
The Australasia and Packaging Distribution restructuring provision primarily relates to costs associated with the new recycled paper mill
in Botany, New South Wales, as announced on 20 February 2008. The provision also includes employee costs associated with the
closure of the existing mills at Botany and Fairfield, Victoria.
Amcor Limited and its controlled entities
Notes to the financial statements
30 June 2010
Page 56
Note 23. Retirement Benefit Obligations
$ million 2010 2009
Defined benefit pension plans 309.2 156.8
Defined benefit post-retirement plans 37.5 19.0
346.7 175.8
Consolidated
Description of plans
The consolidated entity participates in a number of pension plans which have been established to provide benefits for employees and
their dependants. The plans include company sponsored plans, industry/union plans and government plans.
Company sponsored plans
Company sponsored plans include both defined contribution and defined benefit plans. The principal benefits of these plans are
pensions or lump sums for members on resignation, retirement, death or total permanent disablement. These benefits are determined#p#分页标题#e#
on either a defined benefit or accumulation benefit basis.
Employee contribution rates are either determined by the rules of the plan or selected by members from a specified range of rates. In
addition to legislative requirements, employer companies contribute to defined benefit funds as described below or, in the case of
defined contribution funds, the amounts set out in the appropriate plan rules.
Industry/union plans
Employer companies participate in industry and union plans on behalf of certain employees. These plans operate on an accumulation
basis and provide lump sum benefits for members on resignation, retirement or death. The employer entity has a legally enforceable
obligation to contribute at varying rates to these plans.
Government plans
Employer companies participate in government plans, on behalf of certain employees, which provide pension benefits. There exists a
legally enforceable obligation on employer companies to contribute as required by legislation.
Defined benefit plans
Globally the consolidated entity maintains numerous defined benefit pension arrangements. On a vested benefit basis, a few of these
arrangements are in actuarial surplus, while the remainder are in a position of actuarial deficiency. Surpluses and deficiencies depend
on many diverse factors and can vary significantly over time having regard, for example, to movements in the investment markets,
future salary increases and changes in employment patterns. This note sets out the consolidated entity's position and funding policy in
relation to its defined benefit arrangements.
The consolidated entity has no legal obligation to settle any unfunded defined benefit obligation with an immediate contribution or
additional one-off contributions. The objective of funding is to ensure that the benefit entitlements of members and other beneficiaries
are fully funded by the time they become payable.
The consolidated entity's current intention is to make annual contributions to defined benefit funds at a rate determined from time to
time, following discussions with the funds' actuaries or other competent authorities and advisors. The consolidated entity expects that
the contribution rates will be determined after taking into account sound actuarial principles and would be designed to enable all
consolidated entity defined benefit funds to meet retirement expectations and relevant regulatory requirements. The consolidated
entity's current intention is based on these assumptions. The consolidated entity reserves the right to increase, reduce or suspend its
contributions to the funds as it sees fit.
The following tables set out financial information in relation to both defined benefit pension plans and defined benefit post-retirement
plans.
Amcor Limited and its controlled entities
Notes to the financial statements
30 June 2010
Page 57#p#分页标题#e#
Note 23. Retirement Benefit Obligations (continued)
(i) Amounts recognised in the statement of financial position
$ million 2010 2009
Present value of the unfunded defined benefit obligation 1 07.0 48.0
Present value of the funded defined benefit obligation 1 ,482.2 798.5
Liabilities for defined benefit obligations 1 ,589.2 846.5
Fair value of defined benefit plan assets ( 1,249.9) (671.1)
3 39.3 175.4
Unrecognised past service cost ( 0.5) (0.4)
Amounts not recognised as an asset 2 .6 0.4
Net liability in the statement of financial position 3 41.4 175.4
Net liability in the statement of financial position comprises:
Retirement benefit assets (Note 18) ( 5.3) (0.4)
Retirement benefit obligations 3 46.7 175.8
3 41.4 175.4
Consolidated
(ii) Proportion of the fair value of total plan assets
% 2010 2009
Equity securities 3 2.9 25.2
Real estate 5 .2 4.2
Debt securities 3 2.1 36.9
Other assets(1) 2 9.8 33.7
1 00.0 100.0
Consolidated
(1) Other assets include investments held in emerging market debt, currency, cash and other alternative investments.
The defined benefit plan assets of the parent entity may include Amcor Limited securities at various times throughout the year. At 30
June 2010, the plan did not hold any Amcor Limited securities (2009: nil).
(iii) Movement in the liability for defined benefit obligations
$ million 2010 2009
Defined benefit obligation at 1 July 8 46.5 888.8
Current service cost 3 4.7 30.6
Interest cost on benefit obligation 5 5.9 51.7
Actuarial loss/(gain) recognised directly in other comprehensive income 1 35.0 (81.9)
Actuarial gain recognised directly in profit or loss 2 .2 (0.7)
Acquired in business combination 6 76.2 -
Contributions by plan participants 8 .9 6.5
Benefits paid by the plan ( 54.2) (67.8)
Past service cost 0 .3 1.3
Gains on curtailment ( 4.8) (2.1)
Expenses, taxes, premiums paid ( 8.0) (10.7)
Exchange differences on foreign plans ( 103.5) 30.8
Defined benefit obligations at 30 June 1 ,589.2 846.5
Consolidated
Amcor Limited and its controlled entities
Notes to the financial statements
30 June 2010
Page 58
Note 23. Retirement Benefit Obligations (continued)
(iv) Movement in plan assets
$ million 2010 2009
Fair value of plan assets at 1 July 6 71.1 728.0
Contributions by employer 5 5.8 65.6
Contributions by plan participants 8 .9 6.5
Benefits paid by the plan ( 54.2) (67.8)
Expenses, taxes, premiums paid ( 8.0) (10.7)
Acquired in business combination1 5 63.7 -
Expected return on assets 5 2.0 50.3
Actuarial loss recognised directly in other comprehensive income 3 3.4 (127.7)
Transfer from external fund 2 .2 -
Exchange differences on foreign plans ( 75.0) 26.9
Fair value of plan assets at 30 June1 1 ,249.9 671.1#p#分页标题#e#
Consolidated
1 Included in the fair value of plan assets closing balance is an indemnification asset of $104.4 million which was recognised through
the Alcan Packaging acquisition.
(v) Amounts recognised in the income statement
$ million 2010 2009
Current service cost 3 4.7 30.6
Interest cost on benefit obligation 5 5.9 51.7
Expected return on plan assets ( 52.0) (50.3)
Past service cost 0 .1 1.3
Gains on curtailments and benefits paid ( 4.8) (2.1)
Impact of asset ceiling recognised directly in the income statement 0 .7 (0.7)
3 4.6 30.5
Actual return on plan assets 8 5.4 (77.4)
Consolidated
(vi) Actuarial gains and losses recognised in other comprehensive income
$ million 2010 2009
Cumulative amount at 1 July ( 108.9) (68.8)
Recognised in equity during the period
Movement in plan liabilities ( 135.0) 81.9
Movement in plan assets 3 3.4 (127.7)
Impact of asset ceiling recognised directly in other comprehensive income ( 1.7) 5.7
( 103.3) (40.1)
Cumulative amount at 30 June ( 212.2) (108.9)
Consolidated
Amcor Limited and its controlled entities
Notes to the financial statements
30 June 2010
Page 59
Note 23. Retirement Benefit Obligations (continued)
(vii) Principal actuarial assumptions
The principal actuarial assumptions (expressed as weighted averages) used for the purposes of reporting under AASB 119 Employee
Benefits for the consolidated entity’s defined benefit plans are as follows:
% 2010 2009
Discount rate 4 .5 5.3
Expected return on plan assets 5 .8 6.2
Future salary increases 3 .4 3.8
Medical cost trend rates 4 .5 4.5
Consolidated
Expected return on asset assumption
The expected rate of return on assets assumption is determined by weighting the expected long-term return for each asset class by the
benchmark allocation of assets to each class for each defined benefit plan. The returns used for each class are net of tax and
investment fees.
Investment strategy
The investment strategies for the consolidated entity’s defined benefit plans are varied, with the plans seeking to achieve moderate to
high returns within a given risk profile. Investment target strategies for the material defined benefit plans include:
• high returns in the long term, while tolerating a reasonably high degree of volatility of returns over the short period;
• a balance of equity, debt securities and fixed income securities, which would be expected to produce a moderately high return
over the long-term, with only a moderate degree of variability of returns over short periods;
• where investments are made in equity securities, ensuring there is an appropriate mix of domestic and international securities;
• to achieve returns greater than a pre-determined percentage above the prevailing inflation rate; and#p#分页标题#e#
• to ensure all legal obligations are met.
Effects of changes in assumed medical cost trend rates
A 1.0% decrease in medical cost trend rates would be expected to reduce service and interest cost components and the value of the
defined benefit obligation by nil and $0.2 million respectively. A 1.0% increase in medical cost trend rates would be expected to
increase service and interest cost components and the value of the defined benefit obligation by nil and $0.2 million respectively.
(viii) Estimated future contributions
Employer contributions to the defined benefit pension plans and defined benefit post-retirement plans are based on recommendations
by the plans’ actuaries. Actuarial assessments are made periodically.
Employer contributions to defined benefit funds and defined benefit post-retirement plans for the consolidated entity during the financial
year ending 30 June 2011 are expected to total $64.1million.
Amcor Limited and its controlled entities
Notes to the financial statements
30 June 2010
Page 60
Note 23. Retirement Benefit Obligations (continued)
(ix) Historical summary
$ million 2010 2009 2008 2007 2006
Present value of the defined benefit obligation 1,588.7 8 46.1 8 94.2 9 88.9 1,092.5
Fair value of plan assets (1,247.3) ( 670.7) ( 728.4) ( 890.7) ( 848.8)
Deficit in the plans 341.4 1 75.4 1 65.8 9 8.2 2 43.7
Experience adjustments arising on plan liabilities (1.4) 1 8.8 22.2 ( 2.5) 4 2.1
Experience adjustments arising on plan assets 33.4 ( 127.7) (105.3) 5 7.3 ( 37.9)
(x) Defined benefit expense
The expense for both defined benefit plans and defined benefit post-retirement plans were recognised in the following line items in the
income statement:
$ million 2010 2009
Cost of sales 9 .2 3.3
Sales and marketing expenses 1 .5 0.7
General and administration expenses 1 9.4 24.7
Research and development costs 0 .6 0.5
Net financing benefit 3 .9 1.3
3 4.6 30.5
Consolidated
Amcor Limited and its controlled entities
Notes to the financial statements
30 June 2010
Page 61
Note 24. Contributed Equity and Reserves
(a) Contributed equity
$ million 2010 2009
Issued and paid-up:
1,221,647,084 ordinary shares with no par value (2009: 842,758,858)(1) 4 ,029.8 2,440.3
614,000 partly paid ordinary shares with no par value
(2009: 624,000)(2)
4 ,029.8 2,440.3
- -
(1) Fully paid ordinary shares carry one vote per share and carry the right to dividends.
(2) The partly-paid ordinary shares comprise 505,000 (2009: 510,000) shares paid to five cents and 109,000 (2009: 114,000) shares paid to one cent under
Employee Share/Option Plans. The aggregate uncalled capital of $4.4 million (2009: $4.5 million) will be brought to account when these shares are fully paid.
(i) Reconciliation of fully paid ordinary shares#p#分页标题#e#
No. '000 $ million No. '000 $ million
Balance at beginning of period 8 42,759 2 ,440.3 8 34,753 2 ,406.1
Calls on partly paid shares 1 0 0 .1 1 60 0 .9
Issue of shares under the equity placement 2 79,859 1 ,203.4 - -
Issue of shares under the entitlement offer 9 4,739 4 07.4 - -
Issue of shares under the employee share purchase plan (note 27(a)(ii)) 1 90 - 2 01 -
Issue of shares under the dividend reinvestment plan(1) 3 ,357 1 8.7 6 ,399 2 5.5
Issue of shares under the management incentive plan 1 78 - - -
Loan repayments under the Employee Share Option Plan (note 27(b)) - 1 .9 - 2 .3
Exercise of options under the Long Term Incentive Plan
(note 27(b)(ii))
Exercise of performance rights under the Long Term Incentive Plan
(note 27(c)(vii))
Exercise of options under the Employee Share Option Plan 2 43 1 .2 - -
Transaction costs associated with the issue of capital - ( 45.0) - -
Balance at end of period 1,221,647 4 ,029.8 8 42,759 2 ,440.3
1 ,208 5 .4
2 81 1 .6 3 8 0 .1
31
2010 2009
0 .2
(1) Share requirements for the Dividend Reinvestment Plan (DRP) for March 2010 were met by the issue of 3,357,457 (2009: 6,399,353) new shares. Share
requirements for the October 2009 DRP were met by on-market purchases, by a broker, on behalf of DRP participants.
(ii) Reconciliation of partly paid ordinary shares
Balance at beginning of period 6 24 - 7 84 -
Converted to fully paid ordinary shares ( 10) - ( 160) -
Balance at end of period 6 14 - 6 24 -
Amcor Limited and its controlled entities
Notes to the financial statements
30 June 2010
Page 62
Note 24. Contributed Equity and Reserves (continued)
(b) Reserves
Available-for sale revaluation reserve
Changes in the fair value of investments, such as equities and available-for-sale financial assets, are taken to the revaluation reserve,
as described in note 1(j)(iii). Amounts are recognised in the income statement when the associated asset is disposed of or impaired.
Cash flow hedge reserve
The hedging reserve comprises the effective portion of the cumulative net change in the fair value of cash flow hedging instruments
related to hedged transactions that have not yet occurred.
Share-based payments reserve
The share-based payments reserve is used to recognise the fair value of options and rights recognised as an expense.
Exchange fluctuation reserve
Exchange differences arising on translation of foreign controlled operations are taken to the exchange fluctuation reserve, as described
in note 1(c). The relevant position of the reserve is recognised in the income statement when a foreign operation is disposed of.
Note 25. Dividends
Dividends recognised in the current period by the consolidated entity are:
Cents per
share
Total
amount
$ million#p#分页标题#e#
Franked/
unfranked(1) Date of payment
2010
2010 Interim dividend per fully paid share 12.5 1 52.6 Unfranked 31 March 2010
2009 Final dividend per fully paid share 17.0 1 43.3 Unfranked 18 September 2009
295.9
2009
2009 Interim dividend per fully paid share 17.0 1 42.2 Unfranked 25 March 2009
2008 Final dividend per fully paid share 17.0 1 42.0 Unfranked 3 October 2008
284.2
(1) 100% is sourced from the Conduit Foreign Income Account.
In addition to the above dividends, since the end of the financial year, the directors have declared the following final dividend. The
financial effect of this dividend has not been brought to account in the financial statements for the year ended 30 June 2010 and will be
recognised in subsequent Financial Reports.
Cents per
share
Total
amount
$ million
Franked/
unfranked(1) Date of payment
2010
2010 Final dividend per fully paid share(2) 17.0 2 07.7 Unfranked 1 October 2010
2009
2009 Final dividend per fully paid share 17.0 1 43.3 Unfranked 18 September 2009
(1) 100% is sourced from the Conduit Foreign Income Account (2009: 100%).
(2) Estimated final dividend payable, subject to variations in number of shares up to record date.
Franking Account
There are no franking credits available for distribution from the franking account. Accordingly, the final dividend for 2010 is unfranked.
Franking credits that will arise from payment of income tax in the year ending 30 June 2010 have been factored into the franking
account balance.
Amcor Limited and its controlled entities
Notes to the financial statements
30 June 2010
Page 63
Note 25. Dividends (continued)
Conduit Foreign Income Account
For non-resident shareholders for Australian tax purposes, future dividends will not be subject to Australian withholding tax to the extent
that they are franked or sourced from the parent entity’s Conduit Foreign Income Account. For the dividend payable on 1 October
2010, 100% of the dividend is sourced from the parent entity’s Conduit Foreign Income Account. As a result, 100% of the dividend paid
to a non-resident will not be subject to Australian withholding tax.
The balance of the Conduit Foreign Income Account as at 30 June 2010 is $1,173.9 million (2009: $913.7 million). It is estimated that
this will reduce to $966.2 million (2009: $770.4 million) after payment of the estimated final dividend on 1 October 2010.
Amcor Limited and its controlled entities
Notes to the financial statements
30 June 2010
Page 64
Note 26. Financial Risk Management
The consolidated entity’s activities expose it to a variety of financial risks: market risk (including foreign currency risk, interest rate risk,
commodity price risk and employee share plan risk), liquidity risk, credit risk and capital risk management. The consolidated entity uses#p#分页标题#e#
different methods to measure different types of risk to which it is exposed. These methods include sensitivity analysis in the case of foreign
exchange, interest rate and other price risks, aging analysis for credit risk and beta analysis in respect of investment portfolios to determine
market risk. The overall risk management programme focuses on the unpredictability of financial markets and seeks to minimise potential
adverse effects on the consolidated entity’s financial performance. Appropriate commercial terms are negotiated or derivative financial
instruments are used, such as foreign exchange contracts and interest rate swaps, to hedge these risk exposures. Derivatives are
exclusively used for hedging purposes - ie not as trading or other speculative instruments.
Financial risk management is carried out by Amcor Group Treasury under policies approved by the Board. Amcor Group Treasury
identifies, evaluates and hedges financial risks in conjunction with the finance departments of the consolidated entity’s business groups.
The Board has determined written principles for overall risk management, as well as written policies covering specific areas such as
mitigating foreign exchange risk, interest rate risk, credit risk and use of derivative financial instruments.
The consolidated entity holds the following financial instruments:
$ million 2010 2009
Financial assets
Loans and receivables
Cash and cash equivalents 267.1 188.6
Trade receivables and other receivables 1,707.9 1,080.0
Loans and other advances 17.2 14.4
Other financial assets 17.7 30.8
Available-for-sale financial assets
4.5 7.7
1.2 0.2
Derivative financial instruments 23.9 9.3
2,039.5 1,331.0
Financial liabilities
Financial liabilities measured at amortised cost
Trade and other payables 2,494.8 1,753.7
Interest-bearing liabilities 3,311.2 2,831.8
Derivative financial instruments 26.1 16.2
5,832.1 4,601.7
Investments in companies listed on stock exchanges at fair value
Investments in companies not listed on stock exchanges at cost
Consolidated
(a) Market risk
(i) Foreign currency risk
The consolidated entity operates internationally and is exposed to foreign exchange risk arising from various currency exposures, primarily
with respect to the Euro and US dollar. Foreign currency exposures arise from future commercial transactions, recognised assets and
liabilities denominated in a currency that is not the functional currency of the individual entities within the consolidated entity and net
investments in foreign operations.
Transactional foreign currency risk
To manage the foreign currency exchange risk arising from commercial transactions, management has set a policy to use forward
exchange contracts to hedge forecast or actual foreign currency exposures greater than A$500,000, where the exposure is measured#p#分页标题#e#
at forecast or actual transactional cash flows in currencies other than the functional currency of the business. This limit applies to both
an individual transaction and to a number of individual exposures relating to the one transaction that totals more than A$500,000. Local
management may elect to hedge exposures of less than A$500,000. All capital expenditure exposures greater than A$100,000
whether forecast or committed are hedged or must have a hedging strategy in place. In the presence of contractual certainty of a
foreign currency transaction greater than the threshold noted, 100% of the foreign currency exposure is hedged.
Amcor Limited and its controlled entities
Notes to the financial statements
30 June 2010
Page 65
Note 26. Financial Risk Management (continued)
(a) Market risk (continued)
(i) Foreign currency risk (continued)
Transactional foreign currency risk (continued)
In the absence of contractual uncertainty, the proportion of a forecasted foreign currency exposure hedged is dependent upon the
timeframe of the forecasted transaction. Forecast hedge proportions are as follows:
• Up to six months 75%
• Seven to 12 months 50%
• One to two years 25%
• Over two years Nil
Forecast exposure greater than two years from the forecast date must not be hedged unless specifically approved by the Executive
Vice President Finance.
Details of outstanding forward currency contracts (Australian dollar equivalents) at balance date for the consolidated entity are outlined
below, specifying currency and the average exchange rate of the outstanding contracts:
2010 2009 2010 2009
$ million $ million
Buy CAD Sell USD 0-12 months 0 .96 - 2 0.6 -
Buy CAD Sell USD 1-2 years 0 .97 - 4 .0 -
Sell CAD Buy USD 0-12 months 0 .96 - ( 0.8) -
Net CAD position - Buy/(Sell) CAD 2 3.8 -
Buy BRL Sell USD 0-12 months 0 .40 0 .40 0 .1 0 .1
Buy BRL Sell USD 1-2 years - 0 .42 - 0 .3
Net BRL position - Buy BRL 0 .1 0 .4
Buy CHF Sell AUD 0-12 months 0 .98 - 2 .7 -
Net CHF position - Buy CHF 2 .7 -
Buy CHF Sell EUR 0-12 months 1 .43 1 .51 8 0.1 4 .3
Net CHF position - Buy CHF 8 0.1 4 .3
Buy CHF Sell GBP 0-12 months 1 .65 - 0 .9 -
Net CHF position - Buy CHF 0 .9 -
Buy CHF Sell USD 0-12 months 1 .10 1 .17 4 .2 0 .5
Sell CHF Buy USD 0-12 months 1 .06 - ( 0.1) -
Net CHF position - Buy/(Sell) CHF 4 .1 0 .5
Buy DKK Sell EUR 0-12 months 7 .44 7 .45 3 .0 3 .7
Sell DKK Buy EUR 0-12 months 7 .45 7 .47 ( 2.8) ( 0.7)
Net DKK position - Buy/(Sell) DKK 0 .2 3 .0
Buy DKK Sell USD 0-12 months 5 .53 5 .36 2 .1 7 .4
Net DKK position - Buy DKK 2 .1 7 .4
Buy EUR Sell AUD 0-12 months 0 .68 0 .54 3 29.4 8 1.1
Buy EUR Sell AUD 1-2 years 0 .60 - 1 5.9 -
Net EUR position - Buy EUR 3 45.3 8 1.1
Buy EUR Sell CAD 0-12 months 0 .74 - 3 .8 -#p#分页标题#e#
Buy EUR Sell CAD 1-2 years 0 .74 - 0 .9 -
Net EUR position - Buy EUR 4 .7 -
Buy EUR Sell CKZ 0-12 months 0 .04 - 8 .7 -
Sell EUR Buy CKZ 0-12 months 0 .04 - ( 0.6) -
Net EUR position - Buy/(Sell) EUR 8 .1 -
Weighted average rate Contract amounts
Amcor Limited and its controlled entities
Notes to the financial statements
30 June 2010
Page 66
Note 26. Financial Risk Management (continued)
(a) Market risk (continued)
(i) Foreign currency risk (continued)
Transactional foreign currency risk
2010 2009 2010 2009
$ million $ million
Buy EUR Sell USD 0-12 months 0 .77 0 .70 6 .3 1 2.8
Buy EUR Sell USD 1-2 years 0 .82 - 1 .5 -
Sell EUR Buy USD 0-12 months 0 .83 - ( 2.1) -
Net EUR position - Buy/(Sell) EUR 5 .7 1 2.8
Buy EUR Sell NZD 0-12 months - 0 .43 - 1 .8
Net EUR position - Buy EUR - 1 .8
Buy GBP Sell AUD 0-12 months 0 .57 - 0 .9 -
Net GBP position - Buy GBP 0 .9 -
Buy EUR Sell GBP 0-12 months 1 .19 0 .10 4 6.2 7 9.5
Buy EUR Sell GBP 1-2 years - 1 .14 - 1 .2
Sell EUR Buy GBP 0-12 months 1 .14 1 .14 ( 182.5) ( 17.4)
Net EUR position - Buy / (Sell) EUR ( 136.3) 6 3.3
Buy GBP Sell USD 0-12 months 1 .53 - 2 .5 -
Net GBP position - Buy GBP 2 .5 -
Buy HKD Sell AUD 0-12 months 7 .15 4 .85 0 .9 1 .0
Net HKD position - Buy HKD 0 .9 1 .0
Sell NOK Buy SEK 0-12 months 0 .83 - 1 .7 -
Net NOK position - Sell NOK 1 .7 -
Buy NOK Sell EUR 0-12 months 8 .20 0 .2
Sell NOK Buy EUR 0-12 months 8 .07 8 .85 ( 4.1) ( 5.8)
Net NOK position - Buy/(Sell) NOK ( 3.9) ( 5.8)
Buy NZD Sell AUD 0-12 months 1 .24 1 .25 1 .6 5 9.2
Sell NZD Buy AUD 0-12 months 1 .25 1 .02 ( 8.9) ( 9.5)
Net NZD position - Buy/(Sell) NZD ( 7.3) 4 9.7
Buy PLN Sell EUR 0-12 months 4 .04 4 .48 1 8.9 3 3.6
Sell PLN Buy EUR 0-12 months 3 .89 4 .48 ( 8.6) ( 11.8)
Net PLN position - Buy/(Sell) PLN 1 0.3 2 1.8
Buy PLN Sell GBP 0-12 months 4 .39 - 5 .2 -
Sell PLN Buy GBP 0-12 months 4 .39 - ( 1.1) -
Net PLN position - Buy/(Sell) PLN 4 .1 -
Buy SEK Sell AUD 0-12 months 6 .40 5 .59 0 .2 0 .2
Net SEK position - Buy SEK 0 .2 0 .2
Buy SEK Sell EUR 0-12 months 9 .70 1 0.67 0 .3 4 .3
Sell SEK Buy EUR 0-12 months 9 .59 1 1.13 ( 2.4) ( 0.1)
Net SEK position - Buy/(Sell) SEK ( 2.1) 4 .2
Buy SGD Sell AUD 0-12 months 0 .97 0 .2
Net SGD position - Buy SGD - 0 .2
Buy USD Sell AUD 0-12 months 0 .84 0 .74 1 66.8 5 9.0
Buy USD Sell AUD 1-2 years 0 .74 0 .75 0 .1 0 .8
Sell USD Buy AUD 0-12 months 0 .88 0 .80 ( 1.3) ( 2.5)
Net USD position - Buy/(Sell) USD 1 65.6 5 7.3
Buy USD Sell NZD 0-12 months 0 .68 0 .62 1 8.3 8 .6
Buy USD Sell NZD 1-2 years 0 .67 - 0 .3 -
Sell USD Buy NZD 0-12 months 0 .68 0 .64 ( 0.6) ( 0.2)
Net USD position - Buy/(Sell) USD 1 8.0 8 .4
Buy USD Sell EUR 0-12 months 1 .33 1 .35 4 5.5 8 .7#p#分页标题#e#
Buy USD Sell EUR 1-2 years 1 .30 - 4 .2 -
Sell USD Buy EUR 0-12 months 1 .32 1 .34 ( 22.4) ( 15.7)
Sell USD Buy EUR 1-2 years 1 .25 - ( 0.4) -
Net USD position - Buy/(Sell) USD 2 6.9 ( 7.0)
Weighted average rate Contract amounts
Amcor Limited and its controlled entities
Notes to the financial statements
30 June 2010
Page 67
(b) Market risk (continued)
(i) Foreign currency risk (continued)
Transactional foreign currency risk (continued)
The consolidated entity has certain investments in foreign operations whose net assets are exposed to foreign currency translation risk.
Currency exposure arising from the net assets of the consolidated entity’s foreign operations is managed primarily through borrowings
denominated in the relevant foreign currency. Refer also to note 1(j) for further comments regarding the accounting treatment of
effective and ineffective portions of hedges of net investments in foreign operations, and treatment of disposals of foreign operations.
No portion of hedges of net investments in foreign currency operations were ineffective for the consolidated entity for the financial years
ending 30 June 2010 and 30 June 2009.
Exchange rate sensitivity
The following table summarises the estimated impact on the financial results of the consolidated entity of a 10% increase and a 10%
decrease in the value of the AUD against the relevant foreign currencies, with all other variables held constant, taking into account all
underlying exposures and related hedges.
The sensitivity includes only the impact on the balance of financial assets and liabilities at reporting date. The translation of net assets in
subsidiaries with a functional currency other than AUD has not been included in the sensitivity analysis as part of the equity movement.
The sensitivity of a 10% movement is considered reasonable given the current level of exchange rates and after considering economic
forecaster’s expectations. These sensitivities are shown for illustrative purposes only and it should be noted that it is unlikely that all
currencies would move in the same direction and by the same percentage.
FX Rate Increase
AUD/USD ( 8.5) (0.9) 4 2.3 78.8
AUD/EUR ( 15.0) (0.5) 6 2.3 35.2
AUD/NZD - 0.2 ( 1.4) 0.2
AUD/HKD ( 0.1) (0.1) 8 .3 7.1
EUR/USD - 0.7 ( 3.4) 0.8
EUR/European currencies - 18.2 ( 26.9) 0.5
( 23.6) 17.6 8 1.2 122.6
FX Rate Decrease
AUD/USD 1 0.4 1.1 ( 51.7) (96.3)
AUD/EUR 1 8.4 (4.5) ( 76.1) (43.0)
AUD/NZD - 0.7 1 .7 (0.2)
AUD/HKD 0 .1 0.1 ( 10.1) (8.7)
EUR/USD - (0.8) 6 .6 (0.7)
EUR/European currencies - (19.1) 3 8.6 (0.4)
2 8.9 (22.5) ( 91.0) (149.3)
Amcor Limited and its controlled entities
Notes to the financial statements
30 June 2010
Page 68
Note 26. Financial Risk Management (continued)#p#分页标题#e#
(a) Market risk (continued)
(i) Foreign currency risk (continued)
During the 12 months to 30 June 2010 the consolidated entity transferred a $14.5 million loss (2009: $7.7 million loss) from equity to
operating profit and a $158.3 million loss (2009: $0.5 million gain) was added to the measurement of non-financial assets. The amounts
that were transferred to operating profit have been included in the following income statement lines:
$ million 2010 2009
Cost of sales (10.7) (4.1)
Financial expenses (3.8) (3.6)
(14.5) (7.7)
Consolidated
(ii) Interest rate risk
Interest rate risk is the risk that the consolidated entity’s financial position will be adversely affected by movements in floating interest rates
that will increase the cost of floating rate debt or opportunity losses that may arise on fixed borrowings in a falling interest rate environment.
The consolidated entity is exposed to interest rate risk as they invest and borrow funds at both fixed and floating rates. Borrowings issued
at variable rates expose the consolidated entity to cash flow interest rate risk. The consolidated entity’s income and operating cash flows
are largely independent of changes in market interest rates.
Amcor Group Treasury manages the consolidated entity’s exposure to interest rate risk by maintaining an appropriate mix between fixed
and floating rate borrowings, monitoring global interest rates and, where appropriate, hedging interest rate exposure or borrowings at fixed
interest rates through the use of interest rate swaps and forward rate agreements. Such interest rate swaps have the effect of converting
borrowings from floating rates into fixed rates and vice versa.
The following table summarises the impact on the financial results of the consolidated entity of a 1% increase and decrease in the floating
interest rate on the relevant interest rate yield curve applicable to the underlying currency the borrowings are denominated in (including
AUD, Euro and USD) with all other variables held constant, taking into account all underlying exposures and related hedges. A sensitivity
of 1% has been determined based on the consolidated entity’s current credit rating and mix of debt in Australia and foreign countries,
relationships with financial institutions, the level of the debt that is expected to be renewed as well as a review of the last two year’s
historical movements and economic forecaster’s expectations. These sensitivities are shown for illustrative purposes only.
Interest Rate Risk Sensitivites
$ million 2010 2009 2010 2009
Interest rate increase
AUD (2.7) (3.9) - -
EUR (6.2) (0.8) - -
HKD (1.3) (0.8) - -
USD (1.9) (5.6) - -
Other Currencies (0.9) - - -
(13.0) (11.1) - -
Interest rate decrease
AUD 2.7 3.9 - -
EUR - 0.8 - -
HKD - 0.8 - -#p#分页标题#e#
USD - 5.6 - -
Other Currencies 0.9 - - -
3.6 11.1 - -
Impact on post-tax profit Impact on equity
The above analysis shows the sensitivity of movements subject to cash flow risk only. For the consolidated entity, no financial assets or
liabilities that are subject to interest rate risk have been designated at fair value or as available-for-sale.
Amcor Limited and its controlled entities
Notes to the financial statements
30 June 2010
Page 69
Note 26. Financial Risk Management (continued)
(a) Market risk (continued)
(iii) Commodity price risk
The consolidated entity is exposed to commodity price risk from a number of commodities, including aluminium.
In managing commodity price risk, the consolidated entity is ordinarily able to pass on the price risk contractually to certain customers via
the rise and fall adjustments. In the case of aluminium, some hedging is undertaken using fixed price swaps, options and futures, on
behalf of certain customers. Hedging undertaken is based on customer instructions and all related benefits and costs are passed onto
the customer on maturity of the transaction.
The following table sets out, for the consolidated entity, the gross value (Australian dollar equivalents) to be received under commodity
fixed priced contracts, the weighted average contracted London Metals Exchange rates and the settlement periods of contracts
outstanding at 30 June:
A$/tonne A$/tonne A$ million A$ million
2010 2009 2010 2009
Buy Aluminium contracts US$ denominated
Less than one year 2 ,274.6 1,550.4 6 0.3 9.6
Between one and two years 2 ,308.4 1,646.0 4 .5 0.6
Buy Aluminium contracts A$ denominated
Less than one year - 2,167.8 - 17.8
Average fixed price Contract amounts
At 30 June 2010, if the USD aluminium price increased by 10%, with all other variables held constant, equity would have reduced by $5.8
million (2009: decrease $0.1 million). If the aluminium price had decreased by 10%, with all other variables held constant, equity would
have increased by $5.8 million (2009: $0.1 million). The change in equity would result from changes in fair value of commodity fixed price
contracts. As mentioned previously, there is no impact on profit as the consolidated entity passes the price risk contractually through rise
and fall adjustments in customer contractual arrangements
Amcor Limited and its controlled entities
Notes to the financial statements
30 June 2010
Page 70
Note 26. Financial Risk Management (continued)
(a) Market risk (continued)
(iv) Employee share plan risk
In relation to the cash settled variants of the Employee Share Plan Options, the Employee Bonus Payment Plan and the Senior
Executive Retention Payment Plan, the consolidated entity is exposed to movements in the value of the underlying ordinary shares of#p#分页标题#e#
Amcor Limited. For all such entitlements offered, the consolidated entity has hedged their exposure by entering into cash settled equity
share options or equity share swap contracts that mirror the terms and conditions, and therefore offset the fluctuations, in the value of
the employee benefit.
The following tables set out, for the consolidated entity, the expiry or vesting date (if applicable), the outstanding option/share hedge
contract positions and the hedged price of the contracts as at 30 June:
Equity share option "American" style contracts
Expiry date
Contract
volume
Average
hedged
price $ Expiry date
Contract
volume
Average
hedged
price $
Less than one year 02-Aug-10 263,043 6.26 Less than one year 24-Mar-10 186,900 7.87
Between one and five years 31-Dec-10 20,073 6.21 Between one and five years 02-Aug-10 240,800 6.84
31-Dec-11 76,029 6.58 31-Dec-10 23,550 6.78
01-Nov-12 294,005 7.51 31-Dec-11 69,600 7.19
01-Nov-12 277,200 8.20
Equity share swap contracts
Vesting
date
Contract
volume
Average
hedged
price $
Vesting
date
Contract
volume
Average
hedged
price $
Vested Various 171,400 6.37 Vested Various 180,991 7.06
Less than one year Dec-10 625 6.37 Less than one year Jul-09 11,672 7.06
Between one and five years Dec-11 77,137 6.37 Between one and five years Jul-10 5,425 7.06
Mar-12 11,000 6.37 Sep-11 8,410 7.06
Sep-11 8,410 6.37 Sep-12 25,619 7.06
Sep-12 25,619 6.37 Sep-13 16,844 7.06
Sep-13 16,844 6.37
2010 2009
2010 2009
For the consolidated entity, the impact of movements in the underlying share price of Amcor Limited is expected to have a nil impact on
post-tax profit and equity for the period. Variations in cash-settled liabilities are expected to be offset by movements in the hedge
contracts described above.
Amcor Limited and its controlled entities
Notes to the financial statements
30 June 2010
Page 71
Note 26. Financial Risk Management (continued)
(b) Liquidity risk
Liquidity risk arises from the financial liabilities of the consolidated entity and the consolidated entity’s subsequent ability to meet their
obligation to repay their financial liabilities as and when they fall due.
Liquidity risk management involves maintaining available funding and ensuring the consolidated entity has access to an adequate amount
of committed credit facilities. Due to the dynamic nature of the underlying businesses, Amcor Group Treasury aims to maintain a flexibility
within the funding structure through the use of bank overdrafts, bank loans, commercial paper and corporate bonds. The consolidated
entity manages this risk via maintaining minimum undrawn committed liquidity of at least A$330.0 million (in various currencies) that can be#p#分页标题#e#
drawn upon at short notice; generally uses instruments that are readily tradable in the financial markets; monitors duration of long term
debt; to the extent practicable, spreads the maturity dates of long-term debt facilities and regularly performs a comprehensive analysis of all
cash inflows and outflows that relate to financial assets and liabilities.
Financing arrangements
The table below analyses, at reporting date, the committed and uncommitted standby arrangements and unused credit facilities of the
consolidated entity. Committed facilities are those where an agreement is in place with the bank to provide funds on request up to a
specified maximum at a specified interest rate, where agreement conditions must be adhered to by the borrower for the facility to remain in
place. Uncommitted facilities are those where an agreement is in place with the bank where the bank agrees in principle to make funding
available but is under no obligation to provide funding.
$ million Committed Uncommitted Total Committed Uncommitted Total
Financing facilities available
Bank overdrafts - 211.1 211.1 - 247.1 247.1
Unsecured bill acceptance
facility/standby facility 579.4 - 579.4 425.2 - 425.2
Loan facilities and term debt 4,236.1 259.0 4,495.1 2,996.4 375.0 3,371.4
4,815.5 470.1 5,285.6 3,421.6 622.1 4,043.7
Facilities utilised
Bank overdrafts - 64.7 64.7 - 131.3 131.3
Unsecured bill acceptance
facility/standby facility 104.7 - 104.7 62.8 - 6 2.8
Loan facilities and term debt 3,033.7 108.1 3,141.8 2,510.5 126.9 2,637.4
3,138.4 172.8 3,311.2 2,573.3 258.2 2,831.5
Facilities not utilised
Bank overdrafts - 146.4 146.4 - 115.8 115.8
Unsecured bill acceptance
facility/standby facility 474.7 - 474.7 362.4 - 362.4
Loan facilities and term debt 1,202.4 150.9 1,353.3 485.9 248.1 734.0
1,677.1 297.3 1,974.4 848.3 363.9 1,212.2
2010 2009
Amcor Limited and its controlled entities
Notes to the financial statements
30 June 2010
Page 72
Note 26. Financial Risk Management (continued)
(b) Liquidity risk (continued)
Financing arrangements (continued)
For the purposes of reporting on management’s internal liquidity targets to the Board, undrawn committed facility capacity excludes bank
overdrafts and other short term subsidiary loan borrowings. Refer to Note 20 for further details of the major funding arrangements of the
consolidated entity.
Maturity of financial liabilities
The table below analyses the consolidated entity’s financial liabilities and net and gross settled derivative financial instruments into relevant
maturity groupings based on the remaining period at the reporting date to the contractual maturity date. The amounts disclosed in the table
are the contractual undiscounted cash flows.
$ million 1 year or less 1-2 years 2-5 years#p#分页标题#e#
More than 5
years Total
30 June 2010
Non-derivatives
Non-interest bearing 2,464.6 3 0.2 - - 2,494.8
Variable rate 9 10.1 2 4.0 416.3 8 .1 1,358.5
Fixed rate 5 99.2 8 7.3 647.5 1,322.9 2,656.9
Total non-derivatives 3,973.9 1 41.5 1,063.8 1,331.0 6,510.2
Derivatives
Gross settled
- Inflow 1,003.9 2 3.6 - - 1,027.5
- Outflow ( 997.9) ( 26.3) - - (1,024.2)
Total financial liabilities 6 .0 ( 2.7) - - 3 .3
$ million 1 year or less 1-2 years 2-5 years
More than 5
years Total
30 June 2009
Non-derivatives
Non-interest bearing 1,722.2 3 1.5 - - 1,753.7
Variable rate 9 04.3 691.7 5 .6 2 .3 1,603.9
Fixed rate 1 08.0 663.3 298.9 377.9 1,448.1
Total non-derivatives 2,734.5 1,386.5 3 04.5 380.2 4,805.7
Derivatives
Net settled (interest rate swaps) - - - - -
Gross settled
- Inflow 4 21.7 2 .2 - - 423.9
- Outflow ( 413.1) ( 2.1) - - (415.2)
Total financial liabilities 8 .6 0 .1 - - 8 .7
Actual and forecasted cash flows of each business segment are regularly monitored to assess the funding requirements of the consolidated
entity to enable management to ensure that the consolidated entity has access to a range of diverse funding sources over various time
frames in order to meet the cash flow requirements of the group and to maintain adequate liquidity of the consolidated entity.
Amcor Limited and its controlled entities
Notes to the financial statements
30 June 2010
Page 73
Note 26. Financial Risk Management (continued)
(c) Credit risk
The consolidated entity is exposed to credit risk arising from its operating activities (primarily from customer receivables) and financing
activities, including deposits with banks and financial institutions, foreign exchange transactions and other financial instruments. Credit risk
represents the loss that would be recognised if a counterparty failed to fulfil their obligation under a financial instrument contract or a debtor
relationship. The consolidated entity manages credit risk through assessing the overall financial and competitive strength of the
counterparty on an on-going basis. Credit policies cover exposures generated from the sale of products and the use of derivative
instruments.
Credit risks related to receivables
Customer credit risk is managed by each business group in accordance with the procedures and controls set out in the consolidated
entity’s credit risk management policy. Credit limits are established for all customers based on external or internal rating criteria and letters
of credit or other forms of credit insurance cover are obtained where appropriate.
For the sale of products and associated trade receivables, the consolidated entity minimises where possible its concentration of risk by
undertaking transactions with a large number of customers and counterparties in various countries with policies in place to ensure that#p#分页标题#e#
sales of products and services are made to customers with appropriate credit history. In cases where a limited number of customers exist
due to business specifics, the customer’s size, credit rating, dependence on supplier and long-term history of full debt recovery is
indicative of lower credit risk.
In respect of these financial assets and the credit risk embodied within them, the consolidated entity holds no significant collateral as
security. The credit quality of trade receivables that are neither past due nor impaired are consistently monitored in order to identify any
potential adverse changes in credit quality. The consolidated entity has no material exposure to any individual customer.
Credit risk relating to financial instruments and cash deposits
Credit risk from balances with banks and financial institutions is managed by Amcor Group Treasury in accordance with Board approved
policies. For financial derivative instruments, bank counterparties are limited to high credit quality financial institutions with a minimum long
term credit rating of A- or better by Standard & Poor’s. In addition, the Board has approved the use of these financial institutions, and
specific internal guidelines have been established with regard to limits, dealing and settlement procedures. Limits are set to minimise the
concentration of risks and therefore mitigate financial loss through potential counterparty failure. The investment of surplus funds are made
only with approved counterparties and within credit limits assigned to each counterparty. The consolidated entity has no significant
concentration of credit risk in relation to derivatives undertaken in accordance with the consolidated entity’s hedging and risk management
activities.
The carrying amount of financial assets recognised in the statement of financial position (excluding equity securities and carrying
amounts associated with prepayments), as disclosed in Notes 11 and 13, best represents the consolidated entity’s maximum exposure
to credit risk at the reporting date.
Credit risk also arises in relation to financial guarantees given to certain parties, details of the carrying amounts and face value of
financial guarantees provided by the consolidated entity are disclosed in Note 30. Financial guarantees are only provided in
exceptional circumstances.
Impairment of financial assets
As at 30 June 2010 current trade receivables of the consolidated entity with a nominal value of $37.6 million (2009: $26.0 million) were
impaired. The amount of the provision was $35.8 million (2009: $22.0 million). The individually impaired receivables relate to
transactions which have been disputed by customers, or receivables owing from customers experiencing financial difficulties. It has
been assessed that a portion of the receivables is expected to be recovered.
As at 30 June 2010, current trade receivables of $143.7 million (2009: $105.1 million) were past due but not impaired. These relate to a#p#分页标题#e#
number of independent customers for whom there is no recent history of default.
The ageing of these receivables, according to their due date, is as follows:
$ million 2010 2009 2010 2009
Not past due 1.5 2.5 1,364.8 8 28.7
Past due 0-30 days 2.5 1.8 81.8 6 4.0
Past due 31-120 days 7.5 8.1 59.3 3 8.2
More than 121 days 26.1 13.6 2.6 2 .9
37.6 26.0 1,508.5 9 33.8
Impaired Receivables Not Impaired
Amcor Limited and its controlled entities
Notes to the financial statements
30 June 2010
Page 74
Note 26. Financial Risk Management (continued)
(c) Credit risk (continued)
Impairment of financial assets (continued)
Movements in the provision for impairments of receivables are as follows:
$ million 2010 2009
Opening balance 22.0 30.4
Bad debts expense - charge to expense 0.5 8.1
Reversal of impairment - (0.5)
Receivables written off during the year as uncollectible (1.1) (16.5)
Additions through business acquisition 18.1 -
Unused amount reversed (1.7) (1.1)
Effects of movement in exchange rate (2.0) 1.6
35.8 22.0
Consolidated
In assessing an appropriate provision for impairments of receivables consideration is given to historical experience of bad debts, based
on the ageing of receivables, knowledge of debtor insolvency or other credit risk and individual account assessment.
(d) Capital risk management
The key objectives of the consolidated entity when managing capital is to safeguard their ability to continue as a going concern and
maintain optimal returns to shareholders and benefits for other stakeholders. Management also aims to maintain an optimal capital and
funding structure that ensures the lowest cost of capital available to the consolidated entity.
The key objectives include:
• achieving an investment grade rating and maintaining appropriate financial metrics;
• securing access to diversified sources of debt and equity funding with sufficient undrawn committed facility capacity;
• optimising the Weighted Average Cost of Capital (‘WACC’) to reduce the cost of capital to the consolidated entity while providing
financial flexibility.
In order to optimise the capital structure, the Company and its management may alter the amount of dividends paid to shareholders,
return capital to shareholders, issue new shares, draw down additional debt or sell assets to reduce debt in line with the strategic
objectives and operating plans of the consolidated entity.
The capital management strategy aims to achieve an investment grade rating and this has been confirmed by the Board of Directors
(the ‘Board’). The ratings as at 30 June 2010 were investment grade BBB/Baa2 (2009: BBB/Baa2). Various financial ratios and
internal targets are assessed and reported to the Board on a quarterly basis by management to monitor and support the key objectives#p#分页标题#e#
set out above. These ratios and targets include:
- Gearing Ratio;
- Earnings Before Interest, Tax, Depreciation and Amortisation (‘EBITDA’) Interest Cover;
- Fixed/Floating Debt Ratio; and
- Bank Debt/Total Debt Percentage
Amcor Limited and its controlled entities
Notes to the financial statements
30 June 2010
Page 75
Note 26. Financial Risk Management (continued)
(d) Capital risk management (continued)
Management’s targeted and actual metrics for the years ending 30 June 2010 and 30 June 2009, based on continuing operations, were
as follows:
Measure Target 2010 2009
Gearing Ratio 50-55%(1) 46.6%(1) 50.7%(1)
EBITDA Interest Cover > 6 times 6.6 times 6.0 times
Fixed/Floating Debt Ratio 40-60% fixed 61% fixed 43% fixed
Bank Debt/Total Debt Percentage < 45% 36.2% 54.3%
Actual
(1) Includes off balance sheet items (future operating lease commitments)
The bank debt/total debt percentage reflects the effect of exchange rates on the total debt portfolio and the state of bank and debt
capital market conditions over the period to June 2010.
Metrics are maintained in excess of any debt covenant restrictions.
(e) Fair value estimation
The fair values of cash and cash equivalents and monetary financial assets and financial liabilities approximate their carrying value.
The fair values of other monetary financial assets and liabilities are either based upon market prices, where a market exists, or have
been determined by discounting the expected future cash flows by the current interest rate for financial assets and financial liabilities
with similar risk profiles.
Listed equity investments have been valued by reference to market prices prevailing at reporting date. The quoted market price used is
the current bid price. For unlisted equity instruments, the fair value is an assessment by the directors based on the underlying net
assets, future maintainable earnings and any special circumstances pertaining to the particular investment.
The valuation of derivative financial assets and liabilities detailed below reflects the estimated amounts which the consolidated entity
would be required to pay or receive to terminate the contracts or replace the contracts at their current market rates at reporting date.
This is based on internal valuations using standard valuation techniques.
As the purpose of these derivative financial instruments is to hedge the consolidated entity’s underlying assets and liabilities
denominated in foreign currencies and to hedge against risk of interest rate fluctuations, it is unlikely that, in the absence of abnormal
circumstances, these contracts would be terminated prior to maturity.
The carrying amount of trade receivables less impairment provision and trade payables is a reasonable approximation of their fair
values due to the short-term nature of trade receivables and payables. The fair value of financial liabilities for disclosure purposes is#p#分页标题#e#
estimated by discounting the future contractual cash flows at the current market interest rate that is available to the consolidated entity
for similar financial instruments.
For details relating to methods and significant assumptions applied in determining fair values of financial assets and liabilities, refer to
note 1(w).
Amcor Limited and its controlled entities
Notes to the financial statements
30 June 2010
Page 76
Note 26. Financial Risk Management (continued)
(e) Fair value estimation (continued)
The carrying amount and fair values of financial assets and liabilities for the consolidated entity at 30 June are:
Carrying
amount Fair value Carrying
amount Fair value
$ million Note 2010 2010 2009 2009
Financial assets
Cash and cash equivalents 10 2 67.1 267.1 1 88.6 188.6
Trade receivables 11 1 ,510.3 1,510.3 9 37.8 937.8
Other debtors and prepayments 11 2 69.7 269.7 1 91.8 191.8
Loans to other persons, net position 11, 13 3 4.9 34.9 4 5.2 45.2
Available-for-sale financial assets 13 4 .5 4.5 7 .7 7.7
Financial assets at fair value through profit or loss 13 1 .2 1.2 0 .2 0.2
Forward foreign exchange contracts, net position 13, 21 3 .9 3.9 - -
Equity share options 'American' contracts 13 - - 0 .2 0.2
Equity share swap contracts 13 2 .2 2.2 1 .3 1.3
2 ,093.8 2,093.8 1 ,372.8 1,372.8
Financial liabilities
Payables 19 2 ,494.8 2,494.8 1 ,753.7 1,753.7
Bank and other loans 20 1 ,178.4 1,178.4 1 ,538.7 1,538.7
Commercial paper 20 1 04.7 104.7 6 2.9 62.9
US$ notes 20 1 ,512.3 1,671.3 6 19.3 674.2
Eurobond 20 4 96.1 503.0 6 08.6 607.1
Lease liabilities 20 1 9.7 19.7 2 .3 2.3
Forward foreign exchange contracts, net position 13, 21 - - 5 .2 5.2
Commodity fixed price contracts, net position 13, 21 8 .3 8.3 3 .2 3.2
5 ,814.3 5,980.2 4 ,593.9 4,647.3
The fair value of the US$ notes and the Eurobond reflects the revaluation of these instruments, at prevailing market rates. The US$
notes mature between December 2012 and December 2021 while the Eurobond matures in March 2011.
For all other assets and liabilities, based on the facts and circumstances existing at reporting date and the nature of the consolidated
entity’s assets and liabilities, including hedged positions, the consolidated entity has no reason to believe that any of the above assets
could not be exchanged, or any of the above liabilities could not be settled in an ‘arm’s length’ transaction at an amount approximating
its carrying value having considered those routinely held to maturity.
Amcor Limited and its controlled entities
Notes to the financial statements
30 June 2010
Page 77
Note 26. Financial Risk Management (continued)
(f) Fair value measurements
Financial assets and liabilities carried at fair value are detailed in the table below by valuation method. The different levels are defined#p#分页标题#e#
as follows:
Level 1 – quoted prices (unadjusted) in active markets for identical assets or liabilities
Level 2 – inputs other than quoted prices included within level 1 that are observable for the asset or liability, either directly (i.e. as
prices) or indirectly (i.e. derived from prices)
Level 3 – inputs for the asset or liability that are not based on observable market data (unobservable inputs).
The following table presents the consolidated entity’s assets and liabilities measured and recognised at fair value at 30 June 2010.
Comparative information has not been provided as permitted by the transitional provisions of the Standard.
Level 1 Level 2 Level 3
$ million Note 2010 2010 2010
Financial assets
Available-for-sale financial assets
Investments in companies listed on stock exchanges a fair value 13 4 .5 - -
Derivative financial instruments
Forward exchange contracts 13 - 21.5 -
Hedge contracts for cash settled bonus and retention payments plans (Equity
Share Swap Contracts) 13 - 2.2 -
Commodity contracts 13 - 0.2 -
4 .5 23.9 -
Financial liabilities
Derivative financial instruments -
Forward exchange contracts 21 - 17.6 -
Commodity contracts 21 - 8.5 -
- 26.1 -
The fair value of financial instruments traded in active markets (such as available for sale securities) is based on quoted market prices
at the end of the reporting period.
The fair value of financial instruments that are not traded in an active market is determined using valuation techniques. The
consolidated entity uses a variety of methods and makes assumptions that are based on market conditions existing at the end of each
reporting period. Quoted market prices or dealer quotes for similar instruments are used to estimate fair value for long term debt for
disclosure purposes. Other techniques, such as estimated discounted cash flows, are used to determine fair value for the remaining
financial instruments. The fair value of forward exchange contracts is determined using forward exchange market rates at the end of
the reporting period. These instruments are included in level 2 and comprise derivative financial instruments.
Where a valuation technique for these instruments is based on significant unobservable inputs, such instruments are included in level 3.
The consolidated entity holds no level 3 instruments at 30 June 2010.
Amcor Limited and its controlled entities
Notes to the financial statements
30 June 2010
Page 78
Note 27. Share-Based Payments
(a) Employee Share Purchase Plan
In 1985, the consolidated entity established the Employee Share Purchase Plan (ESPP). The following sub-plans have been
implemented pursuant to this plan.
(i) Employee Incentive Share Plan
Under the Employee Incentive Share Plan (EISP), shares were offered for the benefit of all full-time employees, permanent part-time#p#分页标题#e#
employees and executive directors of the Company with more than 12 months’ service. The number of shares offered depended upon
the Company’s annual increase in earnings per share (before significant items).
The EISP has been discontinued for the foreseeable future and there were no commitments at 30 June 2010 (2009: nil) to issue shares
under the ESIP and none were granted or exercised during the year ended 30 June 2010 (2009: nil).
(ii) Senior Executive Retention Share Plan
Under the Senior Executive Retention Share Plan (SERSP), the Board nominates certain senior executives as eligible to receive fully
paid ordinary shares in part satisfaction of their remuneration for the relevant financial year. The number of shares issued is at the
discretion of the Board. The restrictions on these shares do not allow the employee to dispose of the shares for a period of up to five
years (or otherwise as determined by the Board), unless the employee ceases employment later than three years after the shares were
issued. Any right or interest in the shares will be forfeited if the employee voluntarily ceases employment within three years from the
date the shares were issued or, if the employee is dismissed during the restriction period, for cause or poor performance. The shares
subject to the SERSP carry full dividend entitlements and voting rights.
These retention shares are used to reward outstanding levels of previous performance, with the intention to retain key senior executives
by:
- tying the longer term interests of senior executives more closely to those of its shareholders;
- providing exposure for those senior executives to the Company’s development; and
- providing an incentive for those senior executives to stay with the Company by providing such senior executives with Amcor
Limited shares which must be retained for certain periods of time in order to gain full access to their values.
The weighted average fair value for these SERSP’s is calculated using the market value at the date the shares were issued.
Details of the total movement in shares issued under the SERSP during the current and comparative period are as follows:
No. $ No. $
Restricted shares at beginning of financial period 5 93,500 6.20 4 32,500 6.81
Issued during the period 1 90,000 6.30 2 01,000 5.03
Restriction lifted - - ( 40,000) 6.95
Restricted shares at end of financial period 7 83,500 6.23 5 93,500 6.20
Weighted average Weighted average
2010 fair value 2009 fair value
(b) Employee Share Option Plans
(i) Employee Share Option Plan
In 1985, the consolidated entity also established the Employee Share Option Plan (ESOP). Under the ESOP, partly-paid shares or
options over shares in the Company can be issued to executive officers and directors (including directors who are executives) and
senior staff members selected by the directors.#p#分页标题#e#
The partly-paid shares are issued at the closing market price on the allotment date. The call outstanding only becomes payable on
termination, death or at the directors’ discretion. Voting rights exercisable by holders of partly-paid ordinary shares are reduced pro
rata to the portion of the issue price paid up on those shares as per the Australian Securities Exchange Listing Rules.
Options granted under the ESOP may be issued upon such terms and subject to such conditions as the directors of the Company
determine at the time. Options granted under the ESOP are exercisable at a price equal to the closing market share price of Amcor
Limited shares traded on the Australian Securities Exchange at the date on which the options were granted or a weighted average
market price during a period up to and including the date of grant. The options are granted with performance hurdles established by the
directors.
Options are granted under the ESOP at no consideration and carry no dividend entitlement or voting rights until they vest and are
converted to ordinary shares on a one-for-one basis. The options are issued for a term of up to ten years, they cannot be transferred
and are not quoted on any exchange.
Amcor Limited and its controlled entities
Notes to the financial statements
30 June 2010
Page 79
Note 27. Share Based Payments (continued)
(b) Employee Share Option Plans (continued)
(i) Employee Share Option Plan (continued)
For the majority of options issued, executives and certain members of staff are generally only eligible to exercise the options if returns
on average funds employed exceed targeted levels at the end of the financial reporting period in which the options were granted. For
those options granted prior to 1 July 2006 the return on average funds employed is defined as Earnings Before Interest Tax and
significant items (EBIT) divided by average funds employed. For those options granted subsequent to 1 July 2006 the options become
exercisable based on the outcome of a Total Shareholder Return (TSR) test.
Details of the total movement in options issued under the ESOP during the current and comparative period are as follows:
No. $ No. $
Outstanding at beginning of financial period 7 ,846,032 1.38 9 ,097,432 1.38
Exercised ( 242,520) 1.15 - -
Cancelled ( 2,808,920) 1.32 ( 1,251,400) 1.40
Outstanding at end of financial period 4 ,794,592 1.52 7 ,846,032 1.38
Exercisable at end of financial period 4 ,749,592 1.53 7 ,651,032 1.39
Weighted average Weighted average
2010 fair value 2009 fair value
(ii) Long Term Incentive Plan – Share Options
In June 2006, the consolidated entity established the Amcor Limited Long Term Incentive Plan (LTIP). Under the LTIP, performance
options or performance rights over shares in the Company, or performance shares, can be issued to executive officers, senior#p#分页标题#e#
executives and senior staff members selected by the directors. Refer Note 27(c)(vii) for details of performance rights issued under the
LTIP during the period.
Options granted under the LTIP give the employee the right to acquire a share at a future point in time upon meeting specified vesting
conditions that are time based and performance based and upon payment of an exercise price. The number of options that ultimately
vest is based on performance over a period of four years from the date of grant and the outcome of a Total Shareholder Return (TSR)
test to be performed at a predetermined time. The relative performance of Amcor’s average TSR is to be compared against the
average TSR of a comparator group of companies similar to Amcor Limited and will determine the ultimate number of options to be
received. The exact terms and conditions of the options granted are determined by the directors of the Company at the time of granting
the options.
Options granted under the LTIP are exercisable at a price equal to the closing market share price of Amcor Limited shares traded on
the Australian Securities Exchange at the date of the grant. The options are granted at no consideration and carry no dividend
entitlement or voting rights until they vest and are exercised to ordinary shares on a one-for-one basis.
Options that do not vest before the end of the vesting period will expire. Awards that have vested during the vesting period will remain
exercisable until the expiry date, following which any vested awards that remain unexercised will expire. Any unvested awards will be
forfeited if the employee voluntarily ceases employment or if the employee is dismissed for poor performance.
Details of the total movement in options issued under the LTIP during the current period are as follows:
No. $ No. $
Outstanding at beginning of financial period 1 2,041,286 0.98 9 ,961,625 1.00
Granted - - 2 ,709,000 0.93
Exercised ( 30,540) 1.04 - -
Cancelled ( 990,633) 1.01 ( 629,339) 0.99
Outstanding at end of financial period 1 1,020,113 1.09 1 2,041,286 0.98
Exercisable at end of financial period 6 ,642,515 1.09 5 ,789,954 0.99
Weighted average Weighted average
2010 fair value 2009 fair value
Amcor Limited and its controlled entities
Notes to the financial statements
30 June 2010
Page 80
Note 27. Share Based Payments (continued)
(b) Employee Share Option Plans (continued)
(iii) Long Term Incentive Plan – Share Options - Alcan Acquisition Award
During the financial year, the consolidated entity developed the Alcan Acquisition Award (Award). Under the Award, performance
options or performance rights over shares in the Company, or performance shares, were issued to executive officers, senior executives
and senior staff members selected by the directors. Refer Note 27(c)(viii) for details of performance rights issued under the Award#p#分页标题#e#
during the period.
Options granted under the Award give the employee the right to acquire a share at a future point in time upon meeting specified vesting
conditions that are time based, share price based and performance based and upon payment of an exercise price. The number of
options that ultimately vest is based on performance over a period of three to five years from the date of grant and the outcome of a
Return on Average Funds Employed ‘RoAFE’ test to be performed at a predetermined time. If the performance condition is deemed
satisfied, a share price condition is to be met. The exact terms and conditions of the options granted were determined by the directors
of the Company at the time of granting the options.
Options granted under the Award are exercisable at a price equivalent to the volume weighted average price of ordinary shares in the
Company traded on the Australian Securities Exchange (ASX) over the 30 days prior to 18 August 2009 adjusted to take into account
the dilutive effect of the equity raising. For US participants, the Award exercise price was determined as the volume weighted average
price of ordinary shares of the Company on the ASX over the 5 days prior to the grant date. The options are granted at no consideration
and carry no dividend entitlement or voting rights until they vest and are exercised to ordinary shares on a one-for-one basis.
Options that do not vest before the end of the vesting period will expire. Awards that have vested during the vesting period will remain
exercisable until the expiry date, following which any vested awards that remain unexercised will expire. Any unvested awards will be
forfeited if the employee voluntarily ceases employment or if the employee is dismissed for poor performance.
Details of the total movement in options issued under the Award during the current period are as follows
No. $ No. $
Outstanding at beginning of financial period - - - -
Granted 2 6,026,000 1.82 - -
Outstanding at end of financial period 2 6,026,000 1.82 - -
Exercisable at end of financial period - - - -
Weighted average Weighted average
2010 fair value 2009 fair value
Amcor Limited and its controlled entities
Notes to the financial statements
30 June 2010
Page 81
Note 27. Share Based Payments (continued)
(b) Employee Share Option Plans (continued)
The following tables provide a summary of the options granted under the ESOP and LTIP Options for the consolidated entity during the
current and comparative period:
30 June 2010
On issue Exercisable
Proceeds
received
$ No. No. No. No. $ No. No. $
01-Nov-02 (1) 01-Nov-05 01-Nov-12 8 .20 2 ,123,000 - 1 05,600 - - 2 ,017,400 2 ,017,400 -
13-Oct-03 (1) 01-Nov-05 01-Nov-12 7 .67 7 9,200 - - - - 7 9,200 7 9,200 -
23-Mar-04 23-Mar-07 23-Mar-10 7 .34 1 29,940 - 1 29,940 - - - - -#p#分页标题#e#
24-Mar-04 24-Mar-07 24-Mar-10 7 .34 2 ,360,280 - 2 ,360,280 - - - - -
31-May-04 24-Mar-07 24-Mar-10 7 .34 1 7,800 - 1 7,800 - - - - -
02-Aug-04 02-Aug-07 02-Aug-10 6 .31 2 ,360,012 - 9 0,300 2 42,520 6.49 2 ,027,192 2 ,027,192 1 ,530,301
02-May-05 02-Aug-07 02-Aug-10 6 .31 2 5,800 - - - - 2 5,800 2 5,800 -
27-Oct-05 01-Jan-08 31-Dec-10 6 .25 2 50,000 - 6 0,000 - - 1 90,000 1 90,000 -
27-Oct-05 01-Jul-08 30-Jun-11 6 .25 2 50,000 - 4 5,000 - - 2 05,000 2 05,000 -
27-Oct-05 01-Jan-09 31-Dec-11 6 .25 2 50,000 - - - - 2 50,000 2 05,000 -
04-Aug-06 01-Jan-08 31-Dec-10 6 .25 1 ,724,455 - 4 33,039 1 7,100 6.52 1 ,274,316 1 ,274,316 1 06,875
04-Aug-06 01-Jan-08 31-Dec-10 6 .25 1 ,068,160 - 2 49,024 4 ,560 6.39 8 14,576 8 14,576 2 8,500
04-Aug-06 01-Jan-08 31-Dec-10 6 .25 2 80,000 - 6 7,200 - - 2 12,800 2 12,800 -
04-Aug-06 01-Jan-08 30-Jun-11 6 .25 2 80,000 - 5 0,400 - - 2 29,600 2 29,600 -
04-Aug-06 01-Jan-09 31-Dec-11 6 .25 2 80,000 - - - - 2 80,000 2 29,600 -
04-Aug-06 01-Jan-08 31-Dec-10 6 .25 1 00,000 - 2 6,000 - - 7 4,000 7 4,000 -
04-Aug-06 01-Jul-08 30-Jun-11 6 .25 9 0,000 - 1 6,200 - - 7 3,800 7 3,800 -
04-Aug-06 01-Jan-09 31-Dec-11 6 .25 9 0,000 - - - - 9 0,000 7 3,800 -
22-Sep-06 01-Jan-08 31-Dec-10 6 .25 1 03,600 - 1 4,064 - - 8 9,536 8 9,536 -
01-Feb-07 01-Jan-09 31-Dec-11 6 .66 2 ,289,010 - 9 5,160 - - 2 ,193,850 2 ,065,243 -
01-Feb-07 01-Jan-09 31-Dec-11 6 .66 1 ,521,566 - 6 ,246 8 ,880 6.70 1 ,506,440 1 ,416,320 5 9,141
05-Mar-07 01-Jan-09 31-Dec-11 6 .66 9 4,600 - - - - 9 4,600 8 8,924 -
01-Dec-07 31-Oct-11 30-Jun-12 6 .54 7 19,105 - - - - 7 19,105 - -
01-Dec-07 31-Oct-11 30-Jun-12 6 .54 3 93,492 - - - - 3 93,492 - -
01-Dec-07 31-Oct-11 30-Jun-12 7 .07 3 8,472 - - - - 3 8,472 - -
31-Dec-07 31-Oct-11 30-Jun-12 6 .54 6 3,205 - - - - 6 3,205 - -
01-Nov-07 31-Oct-11 30-Jun-12 6 .54 1 65,000 - - - - 1 65,000 - -
23-Apr-08 01-Jan-09 31-Dec-11 7 .19 3 3,300 - 3 3,300 - - - - -
30-May-08 01-Jun-10 31-Dec-11 6 .21 2 2,321 - - - - 2 2,321 - -
01-Dec-08 31-Oct-12 30-Jun-13 5 .09 1 ,320,000 - - - - 1 ,320,000 - -
01-Dec-08 31-Oct-12 30-Jun-13 5 .09 2 80,000 - - - - 2 80,000 - -
01-Dec-08 31-Oct-12 30-Jun-13 5 .09 9 75,000 - - - - 9 75,000 - -
02-Jan-09 31-Oct-12 30-Jun-13 5 .09 1 10,000 - - - - 1 10,000 - -
04-Nov-09 31-Oct-12 29-Jun-16 4 .73 - 1 ,380,000 - - - 1 ,380,000 - -
04-Nov-09 31-Oct-13 29-Jun-16 4 .73 - 8 28,000 - - - 8 28,000 - -
04-Nov-09 31-Oct-14 29-Jun-16 4 .73 - 5 52,000 - - - 5 52,000 - -
26-Mar-10 31-Oct-12 30-Jun-16 4 .73 - 6 ,750,500 - - - 6 ,750,500 - -
26-Mar-10 31-Oct-13 30-Jun-16 4 .73 - 4 ,050,300 - - - 4 ,050,300 - -
26-Mar-10 31-Oct-14 30-Jun-16 4 .73 - 2 ,700,200 - - - 2 ,700,200 - -
26-Mar-10 31-Oct-12 30-Jun-16 5 .86 - 3 ,280,000 - - - 3 ,280,000 - -
26-Mar-10 31-Oct-13 30-Jun-16 5 .86 - 1 ,968,000 - - - 1 ,968,000 - -
26-Mar-10 31-Oct-14 30-Jun-16 5 .86 - 1 ,312,000 - - - 1 ,312,000 - -#p#分页标题#e#
03-May-10 31-Oct-12 30-Jun-16 4 .73 - 7 05,500 - - - 7 05,500 - -
03-May-10 31-Oct-13 30-Jun-16 4 .73 - 4 23,300 - - - 4 23,300 - -
03-May-10 31-Oct-14 30-Jun-16 4 .73 - 2 82,200 - - - 2 82,200 - -
08-Jun-10 31-Oct-12 30-Jun-16 4 .73 - 6 50,000 - - - 6 50,000 - -
08-Jun-10 31-Oct-13 30-Jun-16 4 .73 - 3 90,000 - - - 3 90,000 - -
08-Jun-10 31-Oct-14 30-Jun-16 4 .73 - 2 60,000 - - - 2 60,000 - -
18-Jun-10 31-Oct-12 30-Jun-16 5 .86 - 2 47,000 - - - 2 47,000 - -
18-Jun-10 31-Oct-13 30-Jun-16 5 .86 - 1 48,200 - - - 1 48,200 - -
18-Jun-10 31-Oct-14 30-Jun-16 5 .86 - 9 8,800 - - - 9 8,800 - -
1 9,887,318 2 6,026,000 3 ,799,553 2 73,060 4 1,840,705 1 1,392,107 1 ,724,817
Grant date
Exercise date
on or after Expiry date Exercise price
Options
exercised
Weighted
average share
price at
exercise date
Balance at Balance at end of period
beginning of
period
Options
granted
Options
cancelled
1 Fixed exchange rates apply to overseas participants on these share option grants.
Amcor Limited and its controlled entities
Notes to the financial statements
30 June 2010
Page 82
Note 27. Share Based Payments (continued)
(b) Employee Share Option Plans (continued)
30 June 2009
On issue Exercisable
Proceeds
received
$ No. No. No. No. $ No. No. $
01-Nov-02 (1) 01-Nov-05 01-Nov-12 8 .20 2 ,456,080 - 3 33,080 - - 2 ,123,000 2 ,123,000 -
13-Oct-03 (1) 01-Nov-05 01-Nov-12 7 .67 7 9,200 - - - - 7 9,200 7 9,200 -
20-Oct-03 (1) 01-Nov-05 01-Nov-12 8 .20 1 3,200 - 1 3,200 - - - - -
23-Mar-04 23-Mar-07 23-Mar-10 7 .34 1 52,190 - 2 2,250 - - 1 29,940 1 29,940 -
24-Mar-04 24-Mar-07 24-Mar-10 7 .34 2 ,834,650 - 4 74,370 - - 2 ,360,280 2 ,360,280 -
31-May-04 24-Mar-07 24-Mar-10 7 .34 1 7,800 - - - - 1 7,800 1 7,800 -
02-Aug-04 02-Aug-07 02-Aug-10 6 .31 2 ,768,512 - 4 08,500 - - 2 ,360,012 2 ,360,012 -
02-May-05 02-Aug-07 02-Aug-10 6 .31 2 5,800 - - - - 2 5,800 2 5,800 -
27-Oct-05 01-Jan-08 31-Dec-10 6 .25 2 50,000 - - - - 2 50,000 1 90,000 -
27-Oct-05 01-Jul-08 30-Jun-11 6 .25 2 50,000 - - - - 2 50,000 1 90,000 -
27-Oct-05 01-Jan-09 31-Dec-11 6 .25 2 50,000 - - - - 2 50,000 1 75,000 -
04-Aug-06 01-Jan-08 31-Dec-10 6 .25 1 ,907,200 - 1 82,745 - - 1 ,724,455 1 ,214,539 -
04-Aug-06 01-Jan-08 31-Dec-10 6 .25 1 ,155,100 - 8 6,940 - - 1 ,068,160 7 78,696 -
04-Aug-06 01-Jan-08 31-Dec-10 6 .25 2 80,000 - - - - 2 80,000 2 12,800 -
04-Aug-06 01-Jan-08 30-Jun-11 6 .25 2 80,000 - - - - 2 80,000 2 12,800 -
04-Aug-06 01-Jan-09 31-Dec-11 6 .25 2 80,000 - - - - 2 80,000 1 96,000 -
04-Aug-06 01-Jan-08 31-Dec-10 6 .25 1 00,000 - - - - 1 00,000 7 4,000 -
04-Aug-06 01-Jul-08 30-Jun-11 6 .25 9 0,000 - - - - 9 0,000 6 8,400 -
04-Aug-06 01-Jan-09 31-Dec-11 6 .25 9 0,000 - - - - 9 0,000 6 3,000 -#p#分页标题#e#
22-Sep-06 01-Jan-08 31-Dec-10 6 .25 1 09,150 - 5 ,550 - - 1 03,600 4 4,536 -
01-Feb-07 01-Jan-09 31-Dec-11 6 .66 2 ,421,950 - 1 32,940 - - 2 ,289,010 1 ,696,413 -
01-Feb-07 01-Jan-09 31-Dec-11 6 .66 1 ,632,900 - 1 11,334 - - 1 ,521,566 1 ,125,466 -
05-Mar-07 01-Jan-09 31-Dec-11 6 .66 9 8,600 - 4 ,000 - - 9 4,600 7 0,004 -
01-Dec-07 31-Oct-11 30-Jun-12 6 .54 7 48,829 - 2 9,724 - - 7 19,105 - -
01-Dec-07 31-Oct-11 30-Jun-12 6 .54 4 07,996 - 1 4,504 - - 3 93,492 - -
01-Dec-07 31-Oct-11 30-Jun-12 7 .07 3 8,472 - - - - 3 8,472 - -
31-Dec-07 31-Oct-11 30-Jun-12 6 .54 8 9,107 - 2 5,902 - - 6 3,205 - -
01-Nov-07 31-Oct-11 30-Jun-12 6 .54 1 65,000 - - - - 1 65,000 - -
23-Apr-08 01-Jan-09 31-Dec-11 7 .19 4 5,000 - 1 1,700 - - 3 3,300 3 3,300 -
30-May-08 01-Jun-10 31-Dec-11 6 .21 2 2,321 - - - - 2 2,321 - -
01-Dec-08 31-Oct-12 30-Jun-13 5 .09 - 1 ,344,000 2 4,000 - - 1 ,320,000 - -
01-Dec-08 31-Oct-12 30-Jun-13 5 .09 - 2 80,000 - - - 2 80,000 - -
01-Dec-08 31-Oct-12 30-Jun-13 5 .09 - 9 75,000 - - - 9 75,000 - -
02-Jan-09 31-Oct-12 30-Jun-13 5 .09 - 1 10,000 - - - 1 10,000 - -
1 9,059,057 2 ,709,000 1 ,880,739 - 1 9,887,318 1 3,440,986 -
Weighted
average share
price at
exercise date
Balance at end of period
Options
cancelled
Options
Grant date exercised
Exercise date
on or after Expiry date Exercise price
Balance at
beginning of
period
Options
granted
1 Fixed exchange rates apply to overseas participants on these share option grants.
Amcor Limited and its controlled entities
Notes to the financial statements
30 June 2010
Page 83
Note 27. Share Based Payments (continued)
(c) Other compensation plans (continued)
Entitlement plans are an alternative to the ESPP and the ESOP and are in place in countries where the Company is unable to issue
shares or options. Participants are offered entitlements and, over the period during which employees hold their entitlements, their value
will mirror the fluctuating value of Amcor Limited shares, including (in the case of the Employee Bonus Payment Plan) all dividends paid
on the shares during this time.
(i) Employee Bonus Payment Plan
The Employee Bonus Payment Plan (EBPP) is equivalent to the EISP and enables the Company to offer employees, in certain
countries, an equivalent plan where the EISP is unavailable. Under the EBPP, participants were offered entitlements which were
equivalent to 60% of the weighted average price of Amcor shares, and over the period during which employees held their entitlements,
the value mirrored the fluctuating value of Amcor’s shares, including all dividends paid on the shares during this time. The consolidated
entity hedged its exposure to fluctuations in the value of the underlying Amcor shares. Employees were only able to convert their#p#分页标题#e#
entitlements into a cash bonus payment when they left the Company or three years had passed since the date on which entitlements
were originally issued.
Offers of new entitlements under the EBPP have been discontinued for the foreseeable future.
(ii) Senior Executive Retention Payment Plan
From time to time, the Board may nominate certain employees as eligible to participate in the Senior Executive Retention Payment Plan
(SERPP). Instead of receiving fully paid ordinary shares, entitlements are issued in part satisfaction of an employee’s remuneration for
the relevant financial year. The value of each plan entitlement is linked to the performance of Amcor Limited shares (including the
value of accrued dividends). Plan entitlements may be converted into a cash payment after the five year restriction period has expired
(or otherwise as determined by the Board), provided that the employee has not been dismissed for cause or poor performance during
this time. If the employee voluntarily ceases employment within four or five years from the date the plan entitlements were issued, the
employee forfeits 40% or 20% of their plan entitlements, respectively.
Details of the entitlements issued under the SERPP during the current and comparative period are as follows:
No. $ No. $
Outstanding at beginning of financial period 7 1,000 5.76 6 0,000 6.02
Granted 5 0,000 6.35 1 1,000 4.33
Outstanding at end of financial period 1 21,000 6.00 7 1,000 5.76
Exercisable at end of financial period - - - -
Weighted average Weighted average
2010 fair value 2009 fair value
(iii) Share Appreciation Entitlements
Share Appreciation Entitlements (SAE) may be issued to employees who take part of their bonus by way of entitlements. The value of
entitlements is equivalent to the fluctuating value of Amcor Limited shares during the period which the employee holds the entitlements.
Details of entitlements issued during the current and comparative period are as follows:
No. $ No. $
Outstanding at beginning of financial period - - 5 0,000 -
Exercised - - ( 50,000) -
Outstanding at end of financial period - - - -
Exercisable at end of financial period - - - -
Weighted average Weighted average
2010 fair value 2009 fair value
Amcor Limited and its controlled entities
Notes to the financial statements
30 June 2010
Page 84
Note 27. Share Based Payments (continued)
(c) Other compensation plans (continued)
(iv) Cash Settled Employee Share Plan Options
Cash settled employee share plan options are issued to employees residing in jurisdictions that, for statutory reasons, are not covered
by option plans described above. The cash settled employee share plan options operate in a manner similar to other option plans,
although no entitlements to actual shares or options exist.
Details of entitlements issued during the current and comparative period are as follows:#p#分页标题#e#
No. $ No. $
Outstanding at beginning of financial period 7 52,838 0.39 8 47,138 0.21
Exercised ( 34,400) 0.20 - -
Cancelled ( 190,778) 0.25 ( 94,300) 0.19
Outstanding at end of financial period 5 27,660 0.35 7 52,838 0.39 1
Exercisable at end of financial period 5 22,182 0.35 7 21,655 0.35 1
Weighted average Weighted average
2010 fair value 2009 fair value
1 The year end weighted average fair value has been restated to reflect the rights issue in September 2009.
(v) CEO Medium Term Incentive Plan
On 19 April 2007, the CEO Medium Term Incentive Plan (MTIP) was established. The MTIP is at the discretion of the directors and has
initially been structured as a cash award. Subject to shareholder approval, the directors will have discretion as to whether any award
made will be delivered in the form of cash, rights to Amcor Limited shares or a combination thereof.
The amount payable is impacted by a capping mechanism revolving around options and performance rights previously issued to the
CEO. For any of the options and performance rights that vest during the deferral period, the award amount will be reduced on a dollarfor-
dollar basis.
Based on an independent valuation of the MTIP, as at 30 June 2010, the consolidated entity has recognised a provision of $0.6 million
(2009: $0.6 million) in relation to this employee compensation plan.
(vi) Management Incentive Plan – Equity
The Management Incentive Plan – Equity (EMIP) provides an additional short term incentive opportunity to selected executives,
globally, in the form of rights to Amcor Limited shares.
The number of rights that are allocated to each eligible executive is based on:
• 50% of the value of the cash bonus payable under the EMIP, following the end of the performance period;
• the volume weighted average price of Amcor Limited ordinary shares for the five trading days prior to 30 June, being the end
of the performance period, and
• where cash bonuses are determined in currencies other than Australian dollars, the average foreign exchange rate for the
same five day period.
An executive will forfeit allocated performance rights if either they voluntarily leave Amcor employment during the restriction period or
their employment is terminated for cause. Board discretion applies in the case of involuntary termination of employment and change of
control.
Amcor Limited and its controlled entities
Notes to the financial statements
30 June 2010
Page 85
Note 27. Share Based Payments (continued)
(c) Other compensation plans (continued)
(vi) Management Incentive Plan – Equity (continued)
Details of entitlements issued during the current and comparative period are as follows:
No. $ No. $
Outstanding at beginning of financial period 1 ,839,712 5.00 - -
Granted 1 ,855,458 5.00 1 ,908,515 5.00#p#分页标题#e#
Exercised - - ( 37,696) 5.00
Cancelled ( 61,271) 5.00 ( 31,107) 5.00
Outstanding at end of financial period 3 ,633,899 5.00 1 ,839,712 5.00
Exercisable at end of financial period - - - -
Weighted average Weighted average
2010 fair value 2009 fair value
For the year ended 30 June 2010, the equity outcomes will be determined and allocated in September 2010. As at 30 June 2010, the
consolidated entity recognised a provision of $3.8 million (2009: $1.9 million) in relation to this incentive plan.
(vii) Long Term Incentive Plan - Performance Rights
In June 2006, the consolidated entity established the Amcor Limited Long Term Incentive Plan (LTIP). Under the LTIP, performance
options or performance rights over shares in the Company, or performance shares, can be issued to executive officers, senior
executives and senior staff members selected by the directors. Refer Note 27(b)(ii) for details of share options issued under the LTIP
during the period.
Rights granted under the LTIP give the employee the right to receive a share at a future point in time upon meeting specified vesting
conditions that are time-based and performance based with no exercise price payable. The number of rights that vest are based on
performance over a period and the outcome of a Total Shareholder Return (TSR) test to be performed at a predetermined time. The
relative performance of Amcor’s average TSR is to be compared against the average TSR of a comparator group of companies similar
to Amcor Limited and will determine the ultimate number of rights to be received. The exact terms and conditions of the rights granted
are determined by the directors of the Company at the time of granting the right.
The rights are granted at no consideration and carry no dividend entitlement or voting rights until they vest and are exercised to
ordinary shares on a one-for-one basis.
Rights that do not vest before the end of the vesting period will expire. Awards that have vested during the vesting period will remain
exercisable until the expiry date, following which any vested awards that remain unexercised will expire. Any unvested awards will be
forfeited if the employee voluntarily ceases employment or if the employee is dismissed for poor performance.
Details of the total movement in rights issued under the LTIP during the current and comparative period are as follows:
No. $ No. $
Outstanding at beginning of financial period 3 ,915,304 4.19 3 ,648,717 4.29
Granted - - 1 ,643,000 4.14
Exercised ( 280,610) 4.57 ( 1,208,492) 4.40
Cancelled ( 325,925) 4.16 ( 167,921) 4.36
Outstanding at end of financial period 3 ,308,769 4.16 3 ,915,304 4.19
Exercisable at end of financial period 7 98,339 4.60 7 79,910 4.55
Weighted average Weighted average
2010 fair value 2009 fair value
Amcor Limited and its controlled entities
Notes to the financial statements#p#分页标题#e#
30 June 2010
Page 86
Note 27. Share Based Payments (continued)
(c) Other compensation plans (continued)
(viii) Long Term Incentive Plan - Performance Rights – Alcan Acquisition Award
During the financial year, the consolidated entity developed the Alcan Acquisition Award (Award). Under the Award, performance
options or performance rights over shares in the Company, or performance shares, were issued to executive officers, senior executives
and senior staff members selected by the directors. Refer Note 27(b)(iii) for details of share options issued under the Award during the
period.
Rights granted under the Award give the employee the right to receive a share at a future point in time upon meeting specified vesting
conditions that are time-based and performance based with no exercise price payable. The number of rights that vest are based on
performance over a period and the outcome of a Total Shareholder Return (TSR) test to be performed at a predetermined time. The
relative performance of Amcor’s average TSR is to be compared against the average TSR of a comparator group of companies similar
to Amcor Limited and will determine the ultimate number of rights to be received. The exact terms and conditions of the rights granted
were determined by the directors of the Company at the time of granting the right.
The rights were granted at no consideration and carry no dividend entitlement or voting rights until they vest and are exercised to
ordinary shares on a one-for-one basis.
Rights that do not vest before the end of the vesting period will expire. Rights that have vested during the vesting period will remain
exercisable until the expiry date, following which any vested rights that remain unexercised will expire. Any unvested rights will be
forfeited if the employee voluntarily ceases employment or if the employee is dismissed for poor performance.
Details of the total movement in rights issued under the Award during the current and comparative period are as follows:
No. $ No. $
Outstanding at beginning of financial period - - - -
Granted 3 ,125,000 4.11 - -
Outstanding at end of financial period 3 ,125,000 4.11 - -
Exercisable at end of financial period - - - -
Weighted average Weighted average
2010 fair value 2009 fair value
Amcor Limited and its controlled entities
Notes to the financial statements
30 June 2010
Page 87
Note 27. Share Based Payments (continued)
(c) Other compensation plans (continued)
(viii) Long Term Incentive Plan - Performance Rights
The following tables provide a summary of the rights granted under the LTIP Performance Rights for the consolidated entity during the
current and comparative period:
30 June 2010
On issue Exercisable
No. No. No. No. No. $ No. No.
27-Oct-05 01-Jan-08 31-Dec-10 2 4,000 - 2 4,000 - - - - -#p#分页标题#e#
27-Oct-05 01-Jul-08 30-Jun-11 2 4,000 - 1 8,000 - 6,000 5.91 - -
27-Oct-05 01-Jan-09 31-Dec-11 3 0,000 - - - 12,000 5.91 18,000 -
04-Aug-06 01-Jan-09 31-Dec-10 4 16,029 - 1 26,109 - 56,960 5.79 232,960 2 32,960
04-Aug-06 01-Jan-09 31-Dec-10 9 4,800 - 7 9,800 - - - 15,000 1 5,000
04-Aug-06 01-Jan-09 31-Dec-10 2 2,800 - 2 2,800 - - - - -
04-Aug-06 01-Jan-09 30-Jun-11 2 2,800 - 1 7,100 - 5,700 6.02 - -
04-Aug-06 01-Jan-09 31-Dec-11 2 8,500 - - - 11,400 6.02 17,100 -
04-Aug-06 01-Jan-09 31-Dec-10 1 3,800 - 1 3,800 - - - - -
04-Aug-06 01-Jan-09 30-Jun-11 7 ,200 - 5 ,400 1,800 1,800 5.81 - -
04-Aug-06 01-Jan-09 31-Dec-11 9 ,000 - - 3,600 3,600 5.81 5,400 -
04-Aug-06 01-Jan-09 31-Dec-10 1 9,500 - 4 ,680 - - - 14,820 1 4,820
01-Feb-07 01-Jan-09 31-Dec-11 6 45,461 - 1 2,700 - 83,858 5.84 548,903 5 06,372
01-Feb-07 01-Jan-09 31-Dec-11 1 30,612 - 1 ,536 99,292 99,292 6.34 29,784 -
05-Mar-07 31-Dec-10 31-Dec-11 3 1,050 - - - - - 31,050 2 9,187
01-Dec-07 31-Oct-11 30-Jun-12 3 88,308 - - - - - 388,308 -
01-Dec-07 31-Oct-11 30-Jun-12 2 12,484 - - - - - 212,484 -
01-Dec-07 31-Oct-11 30-Jun-12 2 0,775 - - - - 20,775 -
31-Dec-07 31-Oct-11 30-Jun-12 3 4,131 - - - - - 34,131 -
01-Dec-07 31-Oct-11 30-Jun-12 1 00,000 - - - - - 100,000 -
30-May-08 01-Jun-10 31-Dec-11 1 2,054 - - - - - 12,054 -
01-Dec-08 31-Oct-12 30-Jun-13 1 70,000 - - - - - 170,000 -
01-Dec-08 31-Oct-12 30-Jun-13 8 01,000 - - - - - 801,000 -
01-Dec-08 31-Oct-12 30-Jun-13 5 90,000 - - - - - 590,000 -
02-Jan-09 31-Oct-12 30-Jun-13 6 7,000 - - - - - 67,000 -
04-Nov-09 31-Oct-12 30-Jun-16 - 1 83,500 - - - - 183,500 -
04-Nov-09 31-Oct-13 30-Jun-16 - 1 10,100 - - - - 110,100 -
04-Nov-09 31-Oct-14 30-Jun-16 - 7 3,400 - - - - 73,400 -
26-Mar-10 30-Jun-12 30-Jun-16 - 8 86,000 - - - - 886,000 -
26-Mar-10 30-Jun-13 30-Jun-16 - 5 31,600 - - - - 531,600 -
26-Mar-10 30-Jun-14 30-Jun-16 - 3 54,400 - - - - 354,400 -
26-Mar-10 30-Jun-12 30-Jun-16 - 3 01,000 - - - - 301,000 -
26-Mar-10 30-Jun-13 30-Jun-16 - 1 80,600 - - - - 180,600 -
26-Mar-10 30-Jun-14 30-Jun-16 - 1 20,400 - - - - 120,400 -
03-May-10 30-Jun-12 30-Jun-16 - 9 3,500 - - - - 93,500 -
03-May-10 30-Jun-13 30-Jun-16 - 5 6,100 - - - - 56,100 -
03-May-10 30-Jun-14 30-Jun-16 - 3 7,400 - - - - 37,400 -
08-Jun-10 30-Jun-12 30-Jun-16 - 7 6,000 - - - - 76,000 -
08-Jun-10 30-Jun-13 30-Jun-16 - 4 5,600 - - - - 45,600 -
08-Jun-10 30-Jun-14 30-Jun-16 - 3 0,400 - - - - 30,400 -
18-Jun-10 30-Jun-12 30-Jun-16 - 2 2,500 - - - - 22,500 -
18-Jun-10 30-Jun-13 30-Jun-16 - 1 3,500 - - - - 13,500 -
18-Jun-10 30-Jun-14 30-Jun-16 - 9 ,000 - - - - 9,000 -
3 ,915,304 3 ,125,000 3 25,925 104,692 280,610 6,433,769 7 98,339
Grant date Rights vested
Exercise date
on or after Expiry date
Rights
exercised
Balance at
beginning of#p#分页标题#e#
period Rights granted
Rights
cancelled/
lapsed
Weighted average
share price at
exercise date
Balance at end of period
Amcor Limited and its controlled entities
Notes to the financial statements
30 June 2010
Page 88
Note 27. Share Based Payments (continued)
(c) Other compensation plans (continued)
(viii) Long Term Incentive Plan - Performance Rights (continued)
30 June 2009
On issue Exercisable
No. No. No. No. No. $ No. No.
27-Oct-05 01-Jan-08 31-Dec-10 1 00,000 - - 20,000 76,000 5.65 24,000 -
27-Oct-05 01-Jul-08 30-Jun-11 1 00,000 - - 76,000 76,000 5.66 24,000 -
27-Oct-05 01-Jan-09 31-Dec-11 1 00,000 - - 70,000 70,000 4.96 30,000 -
04-Aug-06 01-Jan-09 31-Dec-10 6 04,195 - 2 4,389 106,445 163,777 5.08 416,029 2 92,150
04-Aug-06 01-Jan-09 31-Dec-10 1 73,400 - 1 1,010 67,590 67,590 5.74 94,800 -
04-Aug-06 01-Jan-09 31-Dec-10 9 5,000 - - 19,000 72,200 5.52 22,800 -
04-Aug-06 01-Jan-09 30-Jun-11 9 5,000 - - 72,200 72,200 5.52 22,800 -
04-Aug-06 01-Jan-09 31-Dec-11 9 5,000 - - 66,500 66,500 5.01 28,500 -
04-Aug-06 01-Jan-09 31-Dec-10 1 9,800 - - 6,000 6,000 5.74 13,800 -
04-Aug-06 01-Jan-09 30-Jun-11 3 0,000 - - 22,800 22,800 5.92 7,200 -
04-Aug-06 01-Jan-09 31-Dec-11 3 0,000 - - 21,000 21,000 5.62 9,000 -
04-Aug-06 01-Jan-09 31-Dec-10 2 1,350 - 8 14 3,900 1,036 5.04 19,500 1 4,820
01-Feb-07 01-Jan-09 31-Dec-11 7 99,250 - 4 0,390 561,401 113,399 4.75 645,461 4 49,963
01-Feb-07 01-Jan-09 31-Dec-11 5 35,700 - 3 3,978 371,110 371,110 5.62 130,612 -
05-Mar-07 31-Dec-10 31-Dec-11 3 2,400 - 1 ,350 22,977 - - 31,050 2 2,977
01-Dec-07 31-Oct-11 30-Jun-12 4 04,359 - 1 6,051 - - - 388,308 -
01-Dec-07 31-Oct-11 30-Jun-12 2 20,316 - 7 ,832 - - - 212,484 -
01-Dec-07 31-Oct-11 30-Jun-12 2 0,775 - - - - 20,775 -
31-Dec-07 31-Oct-11 30-Jun-12 4 8,118 - 1 3,987 - - - 34,131 -
01-Dec-07 31-Oct-11 30-Jun-12 1 00,000 - - - - - 100,000 -
01-Feb-07 01-Jun-10 31-Dec-11 1 2,000 - 3 ,120 8,880 8,880 4.96 - -
30-May-08 01-Jun-10 31-Dec-11 1 2,054 - - - - - 12,054 -
01-Dec-08 31-Oct-12 30-Jun-13 - 1 70,000 - - - - 170,000 -
01-Dec-08 31-Oct-12 30-Jun-13 - 8 16,000 1 5,000 - - - 801,000 -
01-Dec-08 31-Oct-12 30-Jun-13 - 5 90,000 - - - - 590,000 -
02-Jan-09 31-Oct-12 30-Jun-13 - 6 7,000 - - - - 67,000 -
3 ,648,717 1 ,643,000 1 67,921 1,515,803 1 ,208,492 3,915,304 7 79,910
Rights vested
Balance at
beginning of
period Rights granted
Rights
cancelled/
Grant date lapsed
Exercise date
on or after Expiry date
Rights
exercised
Weighted average
share price at
exercise date
Balance at end of period
Amcor Limited and its controlled entities
Notes to the financial statements
30 June 2010
Page 89
Note 27. Share Based Payments (continued)#p#分页标题#e#
(d) Fair value of options and rights granted
Fair value of options
The fair value of each option granted is estimated on the date of grant by independent valuers, using a Black-Scholes option-pricing
model that takes into account the exercise price, the term of the option, the vesting and performance criteria, and where applicable the
market condition criteria, the impact of dilution, the non-tradeable nature of the option, the share price at grant date and expected price
volatility of the underlying share, the expected dividend yield and the risk free interest rate for the term of the option.
The following weighted average assumptions were used for options granted in the current and comparative period:
2010 2009
Expected dividend yield (%) 5.51 4.97
Expected price volatility of the Company's shares (%) 28.00 22.00
Share price at grant date ($) 6.58 6.73
Exercise price ($) 6.09 6.82
Historical volatility (%) 28.00 22.00
Risk-free interest rate (%) 5.45 5.57
Expected life of option (years) 4.10 4.70
The dividend yield reflects the assumption that the current dividend payout will continue with no anticipated changes. The expected life
of the options is based on historical data and is not necessarily indicative of exercise patterns that may occur. The expected volatility
reflects the assumption that the historical volatility is indicative of future trends, which may not necessarily be the actual outcome. For
specific details of grant dates and exercise prices, refer Note 27(b).
Fair value of rights
An independent valuer is used to identify the fair value of each right granted. The fair value of each grant is estimated at grant date
using a Monte-Carlo valuation model which simulates the date of vesting, the percentage vesting, the share price and total shareholder
return. Once the simulated date of vesting is determined, a Black-Scholes methodology is utilised to determine the fair value of the
rights granted.
(e) Expenses arising from share-based payment transactions
Total expenses arising from share-based payment transactions recognised during the period as part of employee benefit expense were
as follows:
$ thousand 2010 2009
Equity settled share-based payment transactions
Options issued 5,953 2,931
Performance rights issued 17,769 12,867
Cash settled share-based payment transactions
Cash settled share-based payments 655 133
24,377 15,931
Consolidated
(f) Liabilities for share-based payments
Cash settled share-based payments liability
Shares 1,113 987
Shares - Overseas 3 25 254
Options 2 07 174
Total carrying amount of liabilities for cash settled arrangements 1,645 1,415
Intrinsic value for vested cash settled shares liability
Shares 1,418 1,117
Options(1) - -
Total intrinsic value of liability for vested benefits 1,418 1,117#p#分页标题#e#
(1) Due to the exercise price for vested options being greater than market value, fully vested cash settled share options have an intrinsic value of zero.
Amcor Limited and its controlled entities
Notes to the financial statements
30 June 2010
Page 90
Note 28. Key Management Personnel Disclosure
Key Management Personnel (KMP) are those persons having authority and responsibility for planning, directing and controlling the
activities of the Amcor Group. All executive and non-executive directors of Amcor Limited are KMP of the consolidated entity. The
following directors and senior executives were considered KMP for the entire period unless otherwise indicated.
(a) Directors
Name Position
Current directors
C I (Chris) Roberts Independent Non-Executive Director and Chairman
K N (Ken) MacKenzie Managing Director and Chief Executive Officer
R K (Keith) Barton Independent Non-Executive Director (retired 22 October 2009)
G J (John) Pizzey Independent Non-Executive Director
J G (John) Thorn Independent Non-Executive Director
G A (Geoff) Tomlinson Independent Non-Executive Director (retired 20 April 2010)
E J J (Ernest) Pope Independent Non-Executive Director
J (Jeremy) Sutcliffe Independent Non-Executive Director (appointed 22 October 2009)
K (Karen) Guerra Independent Non-Executive Director (appointed 20 April 2010)
A (Armin) Meyer Independent Non-Executive Director (appointed 20 April 2010)
(b) Senior executives
The persons who qualified as KMP for the current year are:
Name Position Employer
2010
L A Desjardins Executive Vice President Finance Amcor Limited
I G Wilson Strategic Development Director Amcor Limited
W J Long President, Amcor Rigid Plastics Amcor Rigid Plastics USA, Inc. (formerly Amcor
PET Packaging USA Inc)
N Garrard President, Amcor Australasia and Packaging Distribution Amcor Limited
G Blatrix1 Vice President & General Manager, Snacks & Confectionery, Amcor
Flexibles Europe and Americas (formerly Managing Director, Amcor
Flexibles Food)
Amcor Flexibles Packaging Europe NV
P Brues President, Amcor Flexibles Europe and Americas (formerly President,
Amcor Flexibles Healthcare)
Amcor Flexibles Inc
J Czubak1 Global COO and Vice President, European Operations, Amcor Tobacco
Packaging (formerly Managing Director, Amcor Rentsch)
Amcor Rentsch Rickenbach AG
1 G Blatrix and J Czubak ceased to be KMP’s from 2 February 2010.
Amcor Limited and its controlled entities
Notes to the financial statements
30 June 2010
Page 91
Note 28. Key Management Personnel Disclosures (continued)
(b) Senior executives (continued)
During 2009, the persons that were designated as KMP were:
Name Position Employer
2009
L A Desjardins Executive General Manager Finance Amcor Limited#p#分页标题#e#
I G Wilson Strategic Development Director Amcor Limited
W J Long President, Amcor Rigid Plastics Amcor Rigid Plastics USA, Inc. (formerly Amcor
PET Packaging USA Inc)
N Garrard Managing Director, Amcor Australasia (appointed 11 May 2009) Amcor Limited
G Blatrix Managing Director, Amcor Flexibles Food Amcor Flexibles Packaging Europe NV
P Brues President, Amcor Flexibles Healthcare Amcor Flexibles Inc
J Czubak Managing Director, Amcor Rentsch Amcor Rentsch Rickenbach AG
(c) Key management personnel compensation
The following table details the compensation paid to KMP included in ‘employee benefits expense’, refer Note 5.
$ thousand 2010 2009
Short-term employee benefits 14,205 13,049
Post-employment benefits 982 1,417
Termination benefits 50 78
Share-based payments 6,276 5,152
21,513 19,696
Consolidated
(d) Individual director’s and executive’s compensation disclosures
Detailed remuneration disclosures are provided in the Remuneration Report section of the Directors’ Report on pages xx to xx.
Apart from the information disclosed in this note, no director has entered into a material contract with the consolidated entity since the
end of the previous financial year and there were no material contracts involving directors’ interests existing at year end.
Amcor Limited and its controlled entities
Notes to the financial statements
30 June 2010
Page 92
Note 28. Key Management Personnel Disclosures (continued)
(d) Individual director’s and executive’s compensation disclosures (continued)
No individual key management person or related party holds a loan greater than $100,000 with the consolidated entity (2009: nil).
No impairment losses have been recognised in relation to any loans made to key management personnel (2009: nil).
No loans were advanced during the current year (2009: nil).
Options and rights over equity instruments
Options and rights are issued as part of long-term incentive plans. Non-executive directors do not participate in the long-term incentive
plans. There are two umbrella plans in place: the Employee Share Option Plan (ESOP) and the Employee Share Purchase Plan
(ESPP). The details and conditions pertaining to these plans are outlined within the Remuneration Report section of the Directors’
Report and Note 27.
The number of options and rights over ordinary shares in the Company held during the financial year by each of the Key Management
Personnel of the consolidated entity, including their personally related entities, are set out below:
Name
Directors(2)
K N MacKenzie 2010 1,806,000 2,760,000 4 14,419 (18,000) ( 236,000) 4,726,419 774,000
2009 1,578,000 280,000 1 70,000 (222,000) - 1,806,000 818,000
Senior Executives
L A Desjardins 2010 286,623 903,000 1 38,066 - - 1,327,689 -#p#分页标题#e#
2009 9 6,451 92,000 9 8,172 - - 286,623 -
I G Wilson(3) 2010 729,185 1,300,000 2 44,592 (6,300) ( 56,700) 2,210,777 240,000
2009 535,741 141,000 1 30,144 (77,700) - 729,185 222,000
W J Long 2010 1,182,375 1,680,000 1 79,100 (16,000) ( 216,400) 2,809,075 532,800
2009 952,781 145,000 1 51,794 (67,200) - 1,182,375 662,800
N Garrard 2010 - 1,100,000 150,710 - - 1,250,710 -
2009 - - - - - - -
G Blatrix 2010 774,769 - 9 ,938 - ( 784,707) - -
2009 553,785 110,000 1 10,984 - - 774,769 365,250
P Brues 2010 655,423 1,715,000 2 15,238 (12,000) ( 59,950) 2,513,711 294,100
2009 502,275 103,000 1 00,548 (50,400) 655,423 289,250
J Czubak(4) 2010 751,993 - 6 5,652 - ( 817,645) - -
2009 592,072 90,000 6 9,921 - - 751,993 427,100
Exercised
Other
changes(1)
Balance
vested and
not yet
exercised
Balance at
30 June
Balance at 1
July
Share
options
Share
rights
Granted as
compensation
(1) Other changes represent options or rights that have expired or were forfeited during the period and balances for those individuals that ceased to be KMP’s from 2
February 2010.
(2) Non-executive directors do not participate in the long-term incentive plans of the consolidated entity and are therefore excluded from the analysis in the above
table.
(3) I G Wilson held 50,000 entitlements issued in accordance with the Share Appreciation Entitlements Plan as described in note 27(c)(iii), these were fully exercised
during the prior period.
(4) J Czubak held 60,000 (2009: 60,000) entitlements issued in accordance with the Senior Executive Retention Plan as described in note 27(c)(ii).
No options are vested and unexercisable at the end of the year. No options or performance rights were held by Key Management
Personnel related parties.
Amcor Limited and its controlled entities
Notes to the financial statements
30 June 2010
Page 93
Note 28. Key Management Personnel Disclosures (continued)
(d) Individual director’s and executive’s compensation disclosures (continued)
Options and rights over equity instruments (continued)
The movement during the financial period in the number of ordinary shares in Amcor Limited held, directly, indirectly or beneficially, by
each key management person, including their related parties, is as follows:
Balance at Balance at
Name 1 July (2) 30 June
Directors
C I Roberts 2010 1 64,670 - 8 0,739 - 2 45,409
2009 1 64,670 - - - 1 64,670
K N MacKenzie 2010 2 45,097 1 8,000 3 07,153 - 5 70,250
2009 1 2,763 2 22,000 1 0,334 - 2 45,097
R K Barton 2010 3 3,899 - 1 5,067 - 4 8,966
Retired 22 October 2009 2009 3 3,899 - - - 3 3,899
G J Pizzey 2010 1 8,181 - 8 ,081 - 2 6,262
2009 1 8,181 - - - 1 8,181
J G Thorn 2010 1 0,380 - 4 ,614 - 1 4,994#p#分页标题#e#
2009 1 0,380 - - - 1 0,380
G A Tomlinson 2010 4 3,482 - 1 9,325 - 6 2,807
Retired 20 April 2010 2009 4 3,482 - - - 4 3,482
E J J Pope 2010 5 ,731 - 2 4,548 - 3 0,279
2009 5 ,731 - - - 5 ,731
J Sutcliffe 2010 - - 2 0,416 - 2 0,416
Appointed 22 October 2009 2009 - - - - -
K Guerra 2010 - - 1 ,000 - 1 ,000
Appointed 20 April 2010 2009 - - - - -
A Meyer 2010 - - 1 8,000 - 1 8,000
Appointed 20 April 2010 2009 - - - - -
Senior Executives
L A Desjardins 2010 4 0,000 - 1 7,778 - 5 7,778
2009 4 0,000 - - - 4 0,000
I G Wilson 2010 4 22,285 6 ,300 1 ,400,000 ( 580,000) 1 ,248,585
2009 3 44,585 7 7,700 - 4 22,285
W J Long 2010 1 30,700 1 6,000 1 0,000 - 1 56,700
2009 6 3,500 6 7,200 - - 1 30,700
N Garrard 2010 1 10,000 - - - 1 10,000
2009 - - 1 10,000 (1) - 1 10,000
G Blatrix 2010 3 00 - - ( 300) -
2009 3 00 - - - 3 00
P Brues 2010 5 1,600 1 2,000 - - 6 3,600
2009 1 ,200 5 0,400 - - 5 1,600
J Czubak 2010 3 0,100 - - ( 30,100) -
2009 3 0,100 - - - 3 0,100
Received on
exercise of
options/rights
Purchased
during the
period Other changes
(1)110,000 fully paid Amcor Limited ordinary shares were issued to N Garrard for nil consideration under the terms and conditions of the Senior Executive Retention
Share Plan (refer note 27(a)(ii)) on appointment as Amcor Australasia’s Managing Director.
(2) Other changes represent ordinary shares sold during the period and balances for those individuals that ceased to be KMP’s from 2 February 2010.
Other key management personnel transactions
From time to time, directors and group executives (and their personally related parties) may enter into transactions with the Company
and its controlled entities. These transactions occur within normal customer or supplier relationships on terms and conditions that are
no more favourable than those available, or which might be expected to be available, on similar transactions to non-director related
entities on an arm’s length basis.
Amcor Limited and its controlled entities
Notes to the financial statements
30 June 2010
Page 94
Note 28. Key Management Personnel Disclosures (continued)
(d) Individual director’s and executive’s compensation disclosures (continued)
Other key management personnel transactions (continued)
Other than those items discussed above, there have been no other transactions between key management personnel and the
Company.
Note 29. Other Related Party Disclosures
Subsidiaries
Details of investments in associates and controlled entities are disclosed in notes 14 and 32.
Equity accounted investments
During the year ended 30 June 2010, the consolidated entity did not enter into any trading transactions with associates. Refer note 14
for further information on equity accounted investments and changes in ownership interest.#p#分页标题#e#
During the 12 months to 30 June 2010, the consolidated entity received dividends of $9.7 million from associates (2009: $9.6 million).
Other related parties
Contributions to superannuation funds on behalf of employees are disclosed in notes 5 and 23.
Amcor Limited and its controlled entities
Notes to the financial statements
30 June 2010
Page 95
Note 30. Contingencies
Details of contingent liabilities where the probability of future payments/receipts is not considered remote are set out below:
$ million 2010 2009
Contingent liabilities arising in respect of guarantees(1) 1 1.3 14.4
Total contingent liabilities 1 1.3 14.4
Consolidated
(1) Comprises mainly guarantees given by Amcor Limited in respect of certain borrowings principally in wholly-owned subsidiaries. A subsidiary of the consolidated
entity has also given a guarantee in respect of a former subsidiary.
Details of other contingent liabilities which the directors consider should be disclosed are set out below. The directors are of the opinion
that provisions are not required in respect of these matters, as it is either not probable that a future sacrifice of economic benefits will be
required or the amount is not capable of reliable measurement.
- Amcor Limited has indemnified the PaperlinX Limited Group in relation to potential taxation and workcover liabilities in excess of any
provisions made in the financial statements of the PaperlinX Limited Group at 31 March 2000.
- Under the terms of the ASIC Class Order 98/1418 (as amended) dated 13 August 1998, which relieved certain wholly-owned
subsidiaries from the requirement to prepare audited financial statements, Amcor Limited and certain wholly-owned subsidiaries have
entered into an approved deed for the cross guarantee of liabilities with those subsidiaries identified in note 33. No liabilities subject
to the Deed of Cross Guarantee at 30 June 2010 are expected to arise to Amcor Limited and subsidiaries, as all such subsidiaries
were financially sound and solvent at that date.
- The consolidated entity operates in many territories around the globe under different direct and indirect tax regimes. From time to
time the consolidated entity receives assessments for additional tax from revenue authorities which, having consulted with experts
including external counsel, it believes are unfounded. Nonetheless, at any point in time matters will be under discussion and review
with revenue authorities for which a theoretical exposure may exist. Amcor believes that the likelihood of these having a material
impact on the group’s consolidated financial position, results of operations or cash flows is remote. Specifically, the Latin American
operations have received a series of excise and income tax claims from the local tax authorities and in the opinion of outside counsel
these claims have a remote likelihood of being upheld. It is not possible to make a reasonable estimate of the amount or range of#p#分页标题#e#
expense that could result from an unfavourable outcome in respect of these or any additional assessments that may be issued in the
future. These matters are being vigorously contested by Amcor. All means are being examined in order to minimise any exposure.
Competition Law Investigation – New Zealand
On 29 November 2004, Amcor notified the New Zealand Commerce Commission (NZCC) that the Company may have been involved in
cartel conduct in New Zealand. The NZCC is the regulatory agency responsible for enforcing New Zealand’s anti-trust laws, the
Commerce Act 1986. Amcor applied for leniency pursuant to the NZCC’s Leniency Policy for Cartel Conduct (’NZ Leniency Policy).
The NZ Leniency Policy allows for immunity from NZCC initiated proceedings to the first person involved in a cartel to come forward
with information about the cartel and co-operate fully with the NZCC in its investigation and prosecution of the cartel.
Amcor was granted conditional immunity on 1 December 2004. Pursuant to the NZ Leniency Policy, Amcor entered into an agreement
with the NZCC under which Amcor is obliged to comply with specified conditions including full co-operation with the NZCC. The
NZCC’s investigation is continuing and Amcor continues to provide full co-operation. The NZCC has commenced proceedings in New
Zealand against various parties (but not against Amcor companies) alleging conduct prohibited by the Commerce Act 1986 (including
cartel conduct). Amcor will assist in the proceeding to the extent required by the leniency agreement.
The operation of the NZ Leniency Policy does not exclude or limit claims by third parties who claim to have suffered loss or damage as
a result of any cartel conduct. Under the Commerce Act, third parties may pursue private claims for compensatory or exemplary
damages.
Estimated Damages – New Zealand
As a result of the grant of conditional immunity, Amcor does not expect to incur any pecuniary penalties arising out of the NZCC
investigation. It is not possible, at present, to provide either a reasonable estimate, or a reasonable estimated range of any amounts
which might become payable by way of damages to any third parties who believe they may have suffered loss as a result of any cartel
conduct in New Zealand.
Although it is not possible at present to establish a reasonable estimated range of damages, there can be no assurance that any
damages ultimately incurred will not be material to the results of operations or financial condition of Amcor.
Amcor Limited and its controlled entities
Notes to the financial statements
30 June 2010
Page 96
Note 30. Contingencies (continued)
Class Action - Australia
On 21 December 2005, the Australian Competition and Consumer Commission (ACCC) commenced legal proceedings in the Federal
Court of Australia against certain Visy Group companies and executives. The ACCC alleged that the Visy parties had engaged in#p#分页标题#e#
conduct in the corrugated fibreboard container industry with Amcor companies and certain former Amcor executives that was anticompetitive,
including engaging in price fixing and market sharing, in contravention of the Trade Practices Act 1974.
Amcor and its former senior executives were granted immunity under the ACCC's Leniency Policy for Cartel Conduct and were not
parties to the ACCC's proceedings.
In October 2007, the ACCC settled its prosecution of the Visy parties on the basis of an agreed statement of facts in which the Visy
parties agreed to certain of the alleged conduct. On 2 November 2007, the Federal Court imposed substantial fines on Visy and certain
of its officers.
The immunity from proceedings commenced by the ACCC granted to Amcor and its relevant former executives did not extend to
exclude or limit third party claims.
On 11 April 2006, Jarra Creek Central Packaging Shed Pty Ltd (‘Jarra Creek’) filed a class action claim in the Federal Court of Australia
alleging cartel behaviour and seeking declarations, injunctions and unspecified damages. The respondents to the proceeding are three
Visy companies, Amcor Limited, Amcor Packaging (Australia) Pty Ltd and Fibre Containers (Queensland) Pty Ltd . The proceeding is
expressed to have been brought on behalf of all persons or entities that purchased more than $100,000 of corrugated fibreboard
packaging products between 1 May 2000 and 5 May 2005.
The allegations made in the class action are broadly similar to the allegations that were made in the ACCC’s proceeding against the
Visy parties and assert facts which conform closely with the statement of facts that had been agreed between the ACCC and the Visy
parties in the ACCC's proceedings. In broad terms, it is alleged that certain Amcor Group and Visy Group companies engaged in anticompetitive
conduct in the corrugated fibreboard container industry, including engaging in price fixing and market sharing, in breach of
section 45 of the Australian Trade Practices Act 1974. The class members seek, amongst other things, compensation in respect of the
alleged effect that the asserted behaviour had on the prices they paid for corrugated fibreboard products during the relevant period.
Amcor is defending the claims made in the class action and has cross-claimed against the three Visy Group companies, claiming
contribution for any damages which may be awarded.
The Federal Court instituted an ‘opt-out’ period in April and May of 2008 during which it was open for class members to elect not to
participate in the class action. Approximately 350 parties lodged opt-out notices with the Court.
On 19 March 2010, the representative applicant, Jarra Creek, released to the parties an economist report. The report estimates, based
on the range of disputed and contentious facts and assumptions, that the damages suffered by Amcor customers, should Jarra Creek#p#分页标题#e#
be successful in its claim, are potentially in the vicinity of $466.0 million plus an estimated $231.0 million in interest.
Amcor strongly disputes the estimate put forward and will dispute the facts and assumptions upon which the report appears to be
based. Amcor is continuing to vigorously defend the claim and will, in the course of the litigation, put forward independent expert
evidence refuting the damages calculation put forward by the plaintiff.
It is too early for Amcor to provide any reliable assessment of the likely quantum of any damages that may become payable if its
defence is unsuccessful in whole or in part or of the extent to which it may obtain contribution from the Visy Group companies in respect
of any damages awarded.
Although it is not possible at present to establish a reliable assessment of damages, there can be no assurance that any damages that
may be awarded will not be material to the results of operations or financial condition of Amcor.
Amcor Limited and its controlled entities
Notes to the financial statements
30 June 2010
Page 97
Note 31. Commitments
(a) Capital expenditure commitments
$ million 2010 2009
Contracted at the reporting date but not provided for or payable:
Property, plant and equipment:
Within one year 1 56.1 179.6
Between one and five years 1 1.9 73.6
1 68.0 253.2
Consolidated
(b) Supply and service commitments
Expenditure contracted but not provided for or payable covering other supplies and services to be
provided:
Within one year 4 3.9 57.6
Between one and five years 7 7.5 91.4
More than five years 7 .8 12.3
1 29.2 161.3
(c) Operating lease commitments
Lease expenditure contracted but not provided for or payable:
Within one year 1 47.1 135.2
Between one and five years 3 37.2 323.0
More than five years 1 90.5 223.6
6 74.8 681.8
Less sub-lease rental income ( 9.4) (14.2)
6 65.4 667.6
The consolidated entity leases motor vehicles, plant and equipment and property under operating leases. Leases generally provide the
consolidated entity with a right of renewal at which time all terms are renegotiated.
Some leases provide for payment of incremental contingent rentals based on movements in a relevant price index or in the event that
units produced by certain leased assets exceed a predetermined production capacity. Contingent rental paid during the period is
disclosed in Note 5.
(d) Finance lease commitments
$ million 2010 2009
Lease expenditure contracted and provided for due:
Within one year 3 .6 2.5
Between one and five years 1 1.1 -
More than five years 6 .6 -
Minimum lease payments 2 1.3 2.5
Less future finance charges ( 1.6) (0.2)
1 9.7 2.3
Current lease liability (refer note 20) 3 .3 2.3
Non-current lease liability (refer note 20) 1 6.4 -#p#分页标题#e#
1 9.7 2.3
Consolidated
Amcor Limited and its controlled entities
Notes to the financial statements
30 June 2010
Page 98
Note 32. Particulars in Relation to Controlled Entities and Businesses
The ultimate controlling party of the consolidated entity is Amcor Limited, a company incorporated in Australia. The companies listed
below are those whose results or financial position principally affected the figures shown in this consolidated annual financial report.
Controlled entities Note Country of incorporation 2010 2009
Amcor Packaging (Australia) Pty Ltd (a) Australia 100.0% 100.0%
Amcor Fibre Packaging - Asia Pte Ltd Singapore 100.0% 100.0%
Amcor Packaging (New Zealand) Ltd (a) New Zealand 100.0% 100.0%
Amcor Rigid Plastics USA, Inc. United States of America 100.0% 100.0%
Amcor Packaging Distribution, Inc United States of America 100.0% 100.0%
Amcor Rigid Plastics de Mexico S.A. de C.V. Mexico 100.0% 100.0%
Amcor PET Packaging de Venezuela SA Venezuela 61.0% 61.0%
Amcor Flexibles Inc United States of America 100.0% 100.0%
Vinisa Fuegina S.A. Argentina 100.0% 100.0%
Amcor Rigid Plastics do Brasil Ltda Brazil 100.0% 100.0%
Amcor Flexibles Transpac S.A. British Virgin Islands 100.0% 100.0%
Amcor Flexibles Helio Folien GmbH Germany 100.0% 100.0%
Amcor Flexibles UK Ltd United Kingdom 100.0% 100.0%
Amcor Flexibles Denmark A/S Denmark 100.0% 100.0%
Amcor Flexibles France SA France 100.0% 100.0%
Amcor Flexibles Italia S.r.l. Italy 100.0% -
Amcor Flexibles Singen GmbH Germany 100.0% -
Amcor Rentsch Novgorod Russia 100.0% 100.0%
Amcor Rentsch Polska Spolka z.o.o. Poland 100.0% 100.0%
Grupo Amcor Flexibles Hispania SL Spain 100.0% 100.0%
Amcor Pharmaceutical Packaging USA Inc United States of America 100.0% -
Amcor Flexibles Schupbach AG Switzerland 100.0% 100.0%
Amcor Tobacco Packaging Americas Inc. United States of America 100.0% -
Amcor Flexibles Europa Sur S.A. Spain 100.0% 100.0%
Amcor Group's effective
interest
(a) Amcor Limited and these subsidiary companies have entered into an approved deed for the cross guarantee of liabilities, refer
Note 33.
Acquisition of controlled entities
Acquisitions of controlled entities acquired during the financial period ended 30 June 2010 and 2009 are detailed in Note 34 of the
financial report.
Disposal of controlled entities
30 June 2010
During the 12 months ended 30 June 2010 the consolidated entity disposed of a bottles plant in France that was acquired as part of the
Alcan Packaging acquisition. Consideration received from the sale was $0.4m and there was no profit or loss on disposal.
In addition to the business disposal, the following legal entities were liquidated during the financial period:
- Amcor White Cap Austria GmbH
- Flexirepro OY
- Amcor Holdings Germany GmbH#p#分页标题#e#
- Amcor Flexibles Hochheim GmbH & Co KG
30 June 2009
Amcor Flexibles disposed of a confectionery and snack food business in Thetford, United Kingdom resulting in a loss on disposal of
$1.4 million. This disposal was undertaken as part of the repositioning of the Amcor Flexibles Europe business, as announced in April
2007.
Amcor Limited and its controlled entities
Notes to the financial statements
30 June 2010
Page 99
Note 32. Particulars in Relation to Controlled Entities and Businesses (continued)
Disposal of controlled entities (continued)
In addition to the business disposals the following legal entities were liquidated during the financial period:
- Amcor PET Packaging Europe NV/SA;
- Amcor Magyarorszag Csomagolastechnikai korlatolt Feleossegu Tarsasag;
- Sidlaw South Gyle Ltd;
- Akerlund & Rausing SA;
- Steel Can Components Ltd; and
- Amcor PET Packaging Polska.
Note 33. Deed of Cross Guarantee
Pursuant to ASIC Class Order 98/1418 (as amended) dated 13 August 1998, the wholly-owned subsidiaries listed below are relieved
from the Corporations Act 2001 requirements for preparation and lodgement of audited financial reports, and directors’ reports.
It is a condition of the Class Order that the holding entity, Amcor Limited, and each of the relevant subsidiaries enter into a deed of
cross guarantee (‘the deed’). The effect of the deed is that, in the event of winding up any of these subsidiaries under certain
provisions of the Corporations Act 2001, Amcor Limited guarantees to each creditor of that subsidiary payment in full of any debt. If a
winding up occurs under other provisions of the Corporations Act 2001, Amcor Limited will only be liable in the event that after six
months any creditor has not been paid in full. These subsidiaries have also given similar guarantees in the event that Amcor Limited is
wound up.
The holding entity, Amcor Limited, and subsidiaries subject to the deed of cross guarantee are:
Amcor Packaging (Asia) Pty Ltd Pak Pacific Corporation Pty Ltd
Amcor Nominees Pty Ltd ACN 002693843 Box Pty Ltd
Amcor Investments Pty Ltd Lynyork Pty Ltd
Amcor Packaging (New Zealand) Ltd Fibre Containers (Qld) Pty Ltd
Amcor Finance (NZ) Ltd Specialty Packaging Group Pty Ltd
Amcor Packaging (Australia) Pty Ltd ACN 089523919 CCC Pty Ltd
AGAL Holdings Pty Ltd Rota Die International Pty Ltd
Envirocrates Pty Ltd Rota Die Pty Ltd Trustee of Rota Die Trust
PP New Pty Ltd Amcor European Holdings Pty Ltd
AP Chase Pty Ltd Amcor Holdings (Australia) Pty Ltd
Anfor Investments Pty Ltd Amcor Closure Systems Pty Ltd (formerly Alcan Packaging Capsules of
Australia Pty Ltd)
Amcor Limited and its controlled entities
Notes to the financial statements
30 June 2010
Page 100
Note 33. Deed of Cross Guarantee (continued)#p#分页标题#e#
Financial statements for the Amcor Limited Deed of Cross Guarantee
Consolidated income statements, consolidated statement of comprehensive income and consolidated balance sheets, comprising
Amcor Limited and the wholly-owned subsidiaries party to the deed, after eliminating all transactions between the parties, as at 30
June, are set out below:
(a) Summarised income statement and retained profits
$ million 2010 2009
Profit/(loss) before related income tax expense (150.8) 540.4
Income tax benefit 13.1 42.3
Profit/(loss) from continuing operations after tax (137.7) 582.7
Retained profits at beginning of financial period 1,146.6 873.3
Actuarial losses recognised directly in equity (18.7) (25.2)
990.2 1,430.8
Dividends recognised during the financial period (295.9) (284.2)
Retained profits at the end of the financial period 694.3 1,146.6
(b) Income Statement
$ million 2010 2 009
Sales revenue from continuing operations 2,159.3 2 ,165.5
Cost of sales (1,829.4) ( 1,887.6)
Gross profit 329.9 2 77.9
Other income 83.2 6 33.5
Operating expenses (501.1) ( 249.5)
Profit/(loss) from operations (88.0) 6 61.9
Financial income 129.3 1 53.6
Financial expenses (192.1) ( 275.1)
Net finance costs (62.8) ( 121.5)
Profit/(loss) before related income tax expense (150.8) 5 40.4
Income tax benefit 13.1 4 2.3
Profit/(loss) from continuing operations (137.7) 5 82.7
Profit/(loss) from discontinued operations, net of tax - -
Profit/(loss) for the financial period (137.7) 5 82.7
Profit/(loss) attributable to:
Owners of Amcor Limited (137.7) 5 82.7
Non controlling interest - -
(137.7) 5 82.7
Amcor Limited and its controlled entities
Notes to the financial statements
30 June 2010
Page 101
Note 33. Deed of Cross Guarantee (continued)
(c) Statement of comprehensive income
$ million 2010 2009
Profit/(loss) for the financial period (137.7) 582.7
Other comprehensive income
Available-for-sale financial assets
Net change in fair value of available-for-sale financial assets ( 0.4) 0.7
Net change in fair value of available-for-sale financial assets reclassified to profit or loss - -
Cash flow hedges
Effective portion of changes in fair value of cash flow hedges (157.9) (9.2)
Net change in fair value of cash flow hedges reclassified to profit or loss 7 .5 4.2
Net change in fair value of cash flow hedges reclassified to non-financial assets 158.4 0.1
Exchange differences on translating foreign operations
Exchange differences on translation of foreign operations 2 .5 (27.4)
Net investment hedge of foreign operations ( 0.5) 46.0
Actuarial losses on defined benefit plans ( 26.4) (35.9)
Income tax on other comprehensive income 7 .1 2.0
Other comprehensive loss for the period, net of tax ( 9.7) (19.5)#p#分页标题#e#
Total comprehensive (loss)/income for the period (147.4) 563.2
Total comprehensive (loss)/income attributable to:
Owners of Amcor Limited (147.4) 563.2
Non controlling interest - -
(147.4) 563.2
Amcor Limited and its controlled entities
Notes to the financial statements
30 June 2010
Page 102
Note 33. Deed of Cross Guarantee (continued)
(d) Statement of financial position
$ million 2010 2009
Current assets
Cash and cash equivalents 21.3 15.5
Trade and other receivables 3,635.3 3,783.7
Inventories 330.2 292.5
Other financial assets 4.5 2.7
Total current assets 3,991.3 4,094.4
Non-current assets
Other financial assets 2,787.1 3,046.1
Property, plant and equipment 1,544.6 1,441.7
Deferred tax assets 93.7 65.4
Intangible assets 148.1 157.9
Other non-current assets 74.1 45.1
Total non-current assets 4,647.6 4,756.2
Total assets 8,638.9 8,850.6
Current liabilities
Trade and other payables 438.2 420.4
Interest bearing liabilities 2,218.7 2,700.6
Other financial liabilities 14.8 14.8
Provisions 121.4 117.5
Total current liabilities 2,793.1 3,253.3
Non-current liabilities
Trade and other payables 7.6 2.6
Interest bearing liabilities 921.2 1,867.6
Other financial liabilities 2.5 0.3
Provisions 51.3 47.9
Retirement benefit obligations 52.7 36.5
Total non-current liabilities 1,035.3 1,954.9
Total liabilities 3,828.4 5,208.2
Net assets 4,810.5 3,642.4
Equity
Contributed equity 4,029.8 2,440.3
Reserves 86.4 55.5
Retained profits 694.3 1,146.6
Total equity 4,810.5 3,642.4
Amcor Limited and its controlled entities
Notes to the financial statements
30 June 2010
Page 103
Note 34. Business combination
(a) Summary of acquisition
On 2 February 2010, the consolidated entity announced the successful completion of the acquisition of certain parts of the Alcan
Packaging Operations. As a result of the acquisition, the consolidated entity is among the world’s largest packaging companies with a
global presence and leading position in flexible packaging, folding cartons for tobacco and custom Polyethylene Terephthalate (PET)
containers.
The businesses that the consolidated entity acquired include:
• Alcan Packaging Food Europe;
• Alcan Packaging Global Pharmaceuticals;
• Alcan Packaging Food Asia; and
• Alcan Packaging Global Tobacco.
The consolidated entity acquired 100% of the above businesses, which included a 40% non controlling interest in Alcan Chengdu Co.
Limited which is an equity accounted investment.
On 1 July, 2010, the consolidated entity successfully completed the acquisition of the Alcan Medical Flexibles operations to complete
the Alcan Packaging acquisition. The acquisition was subject to obtaining final US Department of Justice approval which was#p#分页标题#e#
announced on 11 June 2010. This part of the acquisition has been assessed as an event subsequent to reporting date and is disclosed
further in note 36. Up until 1 July 2010, the Alcan Medical Flexibles operations remained under the control of Rio Tinto plc.
Accounting for the Alcan Packaging acquisition has been provisionally determined as at 30 June 2010. The accounting cannot be
completed at this time as the post close adjustment processes remain in progress. Management continues the process of assessing
the fair value of the opening balance sheet which may result in further adjustments to the value attributable to net assets acquired.
Details of the purchase consideration, the net assets acquired and goodwill are as follows:
$ million
Purchase consideration:
Cash paid 2,652.0
Deferred consideration(1) -
Total purchase consideration 2,652.0
1 The final consideration remains subject to certain customary post close adjustments.
Amcor Limited and its controlled entities
Notes to the financial statements
30 June 2010
Page 104
Note 34. Business combination (continued)
(a) Summary of acquisition (continued)
The assets and liabilities recognised as a result of the acquisition have been provisionally determined at 30 June 2010 and are as
follows:
$ million Fair value
Cash and cash equivalents 212.4
Trade and other receivables 1,508.6
Inventories 461.8
Current other financial assets 0.1
Investments accounted for using the equity method 4.7
Non current other financial assets 7.8
Property, plant and equipment 1,307.8
Deferred Tax Assets 95.4
Intangible Assets 222.0
Other non current assets 56.5
Trade and other payables (1,145.4)
Current interest-bearing liabilities (17.4)
Current tax liabilities (44.7)
Current provisions (43.0)
Non current interest-bearing liabilities (30.2)
Deferred tax liabilities (80.9)
Non current provisions (58.5)
Retirement benefit obligations (113.4)
Net identifiable assets acquired 2,343.6
Less non controlling interest (8.5)
Add: goodwill 316.9
Net assets acquired 2,652.0
i) Goodwill
The goodwill on acquisition is primarily attributable to expected synergies available to the consolidated entity upon the integration of the
businesses into the Group, as well as benefits derived from the acquired workforce and other intangible assets that cannot be separately
recognised.
ii) Acquired receivables
The fair value of acquired trade receivables is $573.3 million. The gross contractual amount for receivables due is $591.4 million of which
$18.1 million has been provided for potential impairment losses.
iii) Indemnified liabilities
The terms of the Sale Agreement provide the consolidated entity with indemnification of certain liabilities on acquisition related to#p#分页标题#e#
environmental, litigation, pensions and tax. An indemnification asset of $152.9 million from the seller has been recognised in accordance
with the terms of the Sale Agreement.
Amcor Limited and its controlled entities
Notes to the financial statements
30 June 2010
Page 105
Note 34. Business combination (continued)
(b) Purchase consideration – cash outflow
$ million
2010 2009
Outflow of cash to acquire entities, net of cash acquired
Cash consideration 2 ,652.0 -
Less: Balances acquired
Cash (212.4) -
Bank overdraft 4.4 -
(208.0) -
Outflow of cash 2 ,444.0 -
Consolidated
Acquisition related costs of $76.7 million (2009: $29.7 million) were recognised as an expense during the financial period and are classified
as general and administration expenses in the income statement.
(c) Acquisition and disposal of other businesses
30 June 2010
In addition to the acquisition of the Alcan Packaging operations included in a) and b) above, the consolidated entity acquired the
operations of a packaging distribution business based in Memphis, United States for total consideration of $8.7 million.
30 June 2009
During the 12 months to 30 June 2009 the consolidated entity acquired businesses in the following segments:
• Amcor Australasia (now part of Amcor Australasia and Packaging Distribution) acquired the operations of a corrugated
speciality packaging business in Sainsbury, NSW for total consideration of $6.4 million; and
• Amcor Sunclipse (now part of Amcor Australasia and Packaging Distribution) acquired the operations of a distribution
business, with a focus on the wine industry, located in central California, United States, for total consideration of $7.3 million.
Amcor Limited and its controlled entities
Notes to the financial statements
30 June 2010
Page 106
Note 35. Amcor Limited information
(a) Summary financial information
The individual financial statements for the parent entity show the following aggregate amounts:
$ million 2010 2009
Statement of financial position
Total current assets 7,348.2 5,580.9
Total assets 11,029.5 10,518.8
Total current liabilities 4,072.6 4,615.5
Total liabilities 5,309.7 6,523.8
Net assets 5,719.8 3,995.0
Equity
Contributed equity 4,029.8 2,440.3
Reserves
Share based payments reserve 54.8 32.7
Cash flow hedge reserve (9.7) (14.9)
Retained profits 1,644.9 1,536.9
Total equity 5,719.8 3,995.0
Profit/(loss) before related income tax expense 574.9 (201.1)
Income tax (expense)/benefit (152.7) 98.6
Profit/(loss) from continuing operations after tax 422.2 (102.5)
Total comprehensive income/(loss) 409.3 (128.1)
(b) Financial guarantees
$ million 2010 2009
Carrying amount included in current liabilities 0.2 0.9#p#分页标题#e#
Carrying amount included in non current liabilities 0.2 0.3
0.4 1.2
The Company has guaranteed the bank overdrafts, finance leases and drawn components of bank loans of a number of subsidiaries.
Under the terms of the financial guarantee contracts, the Company will make payments to reimburse the lenders upon failure of the
guaranteed entity to make payments when due.
Terms and face values of the liabilities guaranteed were as follows:
30 June 2010 30 June 2009
$ million Face value Face value
Bank term loans of controlled entities 2010 17.3 1 1.8
Year of
maturity
The Company has also entered into a Deed of Cross Guarantee with certain subsidiaries. Under the terms of the deed, the Company
has guaranteed the repayment of all relevant current and future creditors in the event any of the entities party to the deed are wound
up. Details of the deed and the consolidated financial position of the Company and the subsidiaries party to the deed are set out in
note 33. The method used in determining the fair value of these guarantees has been disclosed in the consolidated entity’s accounting
policy Financial Guarantee Contracts, refer note 1(q).
Amcor Limited and its controlled entities
Notes to the financial statements
30 June 2010
Page 107
Note 35. Amcor Limited information (continued)
(c) Contingent liabilities of Amcor Limited
Details of contingent liabilities where the probability of future payments/receipts is not considered remote are set out below:
$ million 2010 2009
Contingent liabilities arising in respect of guarantees(1) 13.2 1 8.7
Total contingent liabilities 13.2 1 8.7
Amcor Limited
(1)Comprises mainly guarantees given by Amcor Limited in respect of certain borrowings principally in wholly-owned subsidiaries. A subsidiary of the consolidated
entity has also given a guarantee in respect of a former subsidiary.
Details of other contingent liabilities which the directors consider should be disclosed for Amcor Limited are set out in Note 30. The
directors are of the opinion that provisions are not required in respect of these matters, as it is either not probable that a future sacrifice
of economic benefits will be required or the amount is not capable of reliable measurement.
Note 36. Events Subsequent to Balance Date
Acquisition of Alcan’s Medical Flexibles operations
On 1 July, 2010, the consolidated entity successfully completed the acquisition of the Alcan Medical Flexibles operations for
consideration of US$66.0 million ($76.5 million1) as part of the Alcan Packaging acquisition that was completed on 2 February 2010.
The Medical Flexibles businesses consists of four plants in North America and as announced on 11 June 2010, final US Department of
Justice approval is conditional on divesting one of the plants which is located in Marshall, North Carolina. The divestment process for#p#分页标题#e#
the Marshall operations has commenced, and until completed, the consolidated entity is required to hold and operate Marshall
separately from other businesses.
The combined Medical Flexibles business has annual sales of approximately US$115.0 million ($131.3 million2), of which the Marshall
operations account for approximately US$30.0 million ($34.2 million2), and will reside in the Amcor Flexibles reporting segment.
Acquisition of Ball Plastics Packaging Americas
On 16 June 2010, the consolidated entity announced that it had reached agreement to purchase the assets of Ball Plastics Packaging
Americas from Ball Corporation. The acquisition was subject to the receipt of Department of Justice approval in the United States of
America and closed on 3 August 2010. The purchase price is US$280.0 million ($307.0 million3) representing four times the last twelve
months acquired EBITDA of US$70 million ($76.8 million3) which is inclusive of US$15 million ($16.4 million3) payable upon the
successful renewal of a contract which was achieved prior to closing.
The business has five plants in North America and sales of approximately US$600.0 million ($684.9 million2) and will reside within the
Amcor Rigid Plastics reporting segment.
Approximately 50% of the earnings of the business are derived from the Diversified Products and Custom Beverage and 50% from
Carbonated Soft Drink and Water (CSDW).
The acquisition will expand Amcor’s Diversified Product’s business. The Diversified Products business targets the healthcare /
pharmaceutical, personal care, food and distilled spirits end markets. The acquisition brings exposure to new growth opportunities
including wine bottles, retort packaging for food and high density polyethylene (HDPE) and polypropylene (PP) containers for various
market segments.
Additionally, Amcor Rigid Plastics will be positioned to offer a broader range of innovation and technology based solutions to
customers. The acquisition of Ball Plastics Packaging Americas brings with it expanded capabilities, including exciting developments in
multi layer, retort and barrier technologies as well as the assets and know how to manufacture HDPE and PP extrusion blow moulded
containers.
Divestment of Tobepal operations
An announcement was made on 15 December 2009 that to successfully complete the acquisition of the Alcan Packaging operations,
the consolidated entity was required to obtain European Commission approval. This approval would be achieved upon the divestment
of the Amcor Tobepal operations in Spain which resides within the Amcor Flexibles reporting segment.
1 Converted at an exchange rate of A$/US$ = 0.863
2 Converted at an exchange rate of A$/US$ = 0.876. This information has not been subject to audit procedures.
3 Converted at an exchange rate of A$/US$ = 0.912
Amcor Limited and its controlled entities#p#分页标题#e#
Notes to the financial statements
30 June 2010
Page 108
Note 36. Events Subsequent to Balance Date (continued)
Divestment of Tobepal operations (continued)
On 30 May 2010, the consolidated entity entered into an agreement to sell the Tobepal operations and certain assets of Grupo Amcor
Flexibles Hispania S.L. to Constantia Packaging AG for Euro 92.0 million ($130.5 million4). European Commission approval for the
divestment has been granted with the closing date expected by the end of September 2010. Final consideration remains subject to
certain customary post close adjustments.
The Tobepal operations comprise two plants that produce a range of pharmaceutical, personal care and food packaging products which
had combined sales of approximately Euro 103.1 million ($162.4 million5) for the year ended 30 June 2010.
Debt refinancing
The Company has successfully refinanced the following interest bearing liabilities subsequent to 30 June 2010 for the purposes of
renewing existing debt facilities and for the general corporate and working capital purposes of the Amcor Group:
• US$1.25 billion global syndicated revolving facility due to mature in June 2011 of which the Company on 23 August 2010 has
received US$600 million in commitments from Mandated Lead Arrangers and Bookrunners. The commitments are subject to
finalisation and execution of a Facility Agreement and related documentation in a form acceptable to the parties. This
syndication process is continuing in accordance with the strategy of the Company to obtain a level of funding considered
appropriate.
指导essay,指导report essay-Preliminary Final report
• A$150 million bilateral facility due to mature in September 2010 has been refinanced by a 3 year A$100 million facility with an
effective date of 26 August 2010.
4 Converted at an exchange rate of A$/Euro = 0.705
5 Converted at an exchange rate of A$/Euro = 0.635
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