Restructuring

3 Months Ended

Sep. 30, 2025

Restructuring and Related Activities [Abstract]

Restructuring and related expenses, net, were $45 million and $6 million during the three months ended September 30, 2025, and 2024. The net expenses related to restructuring activities have been presented on the unaudited condensed consolidated statements of income as part of restructuring, transaction and integration expenses, net. The Company's restructuring activities for the three months ended September 30, 2025, were primarily comprised of restructuring activities related to the Berry Plan (as defined below). In the three months ended September 30, 2024, the Company's restructuring activities primarily related to the 2023 Restructuring Plan (as described in footnote 2 in the Consolidated Restructuring Plans table below).

Restructuring related expenses are directly attributable to restructuring activities; however, they do not qualify for special accounting treatment as exit or disposal activities. The Company believes the disclosure of restructuring related costs provides more complete information on its restructuring activities.

Berry Plan

In connection with the Merger with Berry, the Company initiated restructuring and integration activities in the fourth quarter of fiscal year 2025 ("Berry Plan") aimed at integrating the combined organization. The total Berry Plan pre-tax cash cost is estimated at $280 million, net, including restructuring activities and general integration expenses. As of September 30, 2025, the Company has initiated restructuring projects with an expected net cost of approximately $165 million, of which $94 million relates to employee related expenses, $13 million to fixed asset related expenses (net of expected gains on asset disposals), $33 million to other restructuring expenses, and $25 million to restructuring related expenses. In addition, the Company expects to spend approximately $90 million on general integration costs. The Company estimates that restructuring and general integration activities initiated to date will result in net cash expenditures of approximately $190 million. The Berry Plan relates to both reportable segments and Corporate and is expected to be completed by the end of fiscal year 2028.

In the three months ended September 30, 2025, the Company incurred $48 million in employee related expenses, $3 million in other restructuring, and $2 million in restructuring related expenses, partially offset by a net gain of $13 million on fixed asset related items, with $9 million incurred in the Global Flexible Packaging Solutions reportable segment and $28 million incurred in the Global Rigid Packaging Solutions reportable segment, and $3 million incurred in Corporate. Net cash outflows for restructuring and related expenses for the three months ended September 30, 2025, were approximately $1 million. Net cash expenditures of approximately $100 million to $120 million are expected for the balance of the fiscal year for restructuring and general integration activities, with $80 million to $90 million representing payments for restructuring and related expenses.

From the initiation of the Berry Plan through September 30, 2025, the Company has incurred $62 million in employee related expenses, $3 million in other restructuring and $2 million in restructuring related expenses, partially offset by a net gain of $13 million on fixed asset related items, with $23 million incurred in the Global Flexible Packaging Solutions reportable segment, $28 million incurred in the Global Rigid Packaging Solutions reportable segment, and $3 million incurred in Corporate. To date, the Berry Plan has resulted in approximately $4 million of restructuring net cash outflows. The Company has also incurred $41 million in general integration expenses to date, in both reportable segments and Corporate.

Other Restructuring Plans

The Company has entered into other individually immaterial restructuring plans ("Other Restructuring Plans"). Expenses incurred on such programs are primarily costs to move equipment and other costs.

Consolidated Restructuring Plans

The total restructuring and related costs incurred in the first quarter of fiscal years 2025 and 2026 are as follows:


($ in millions)	Berry Plan (1)	2023 Restructuring Plan (2)	Other Restructuring Plans (3)	Total Restructuring and Related Expenses
Fiscal year 2025, first quarter	—	6	—	6
Fiscal year 2026, first quarter	40	—	5	45

(1)Includes restructuring related expenses of $2 million for the first quarter of fiscal year 2026.

(2)The 2023 Restructuring Plan was announced on February 7, 2023, and relates to the Company’s various cost saving initiatives to partly offset divested earnings from the three manufacturing facilities in Russia that were sold in fiscal year 2023. This plan was completed at the end of calendar year 2025 and included restructuring related expenses of $2 million for the first quarter of fiscal year 2025.

(3)Includes restructuring related costs of $2 million for the first quarter of fiscal year 2026.

An analysis of the restructuring charges by type incurred is as follows:


	Three Months Ended September 30,
($ in millions)	2025		2024
Employee related expenses	$	48	$	—
Fixed asset related expenses/(gains) (1)	(12)		1
Other expenses	5		3
Total restructuring expenses, net	$	41	$	4

(1) Three Months Ended September 30, 2025 includes a net gain on disposal of $21 million.

An analysis of the Company's restructuring plan liability, not including restructuring related liabilities, is as follows:


($ in millions)	Employee Costs		Fixed Asset Related Costs		Other Costs		Total Restructuring Costs
Liability balance as of June 30, 2025	$	97	$	—	$	8	$	105
Net charges to earnings	48		9		5		62

Cash paid	(26)		—		(4)		(30)
Non-cash and other	(1)		(9)		—		(10)

Liability balance as of September 30, 2025	$	118	$	—	$	9	$	127

The majority of the accruals related to restructuring activities have been recorded on the unaudited condensed consolidated balance sheets under other current liabilities.