Berry Global Group Annual Report 2021

Plain-text annual report

2021 ANNUAL REPORTLeadership for the Future INNOVATION FOR THE WORLDSOLUTIONS FOR YOUFISCAL YEARS ENDEDOCTOBER 2, 2021SEPTEMBER 26, 2020% CHANGE5 Year Total Return S&P 500 = 201%DJUSCP = 147%BERY = 140%Dow Jones US Containers & Packaging IndexBerry Global Group, Inc.S&P 500 Index$80$130$180'16'17'18'19'20'21$732$761$974$1,179$1,292$700$900$1,100$1,300FY '17FY '18FY '19FY '20FY '21**Total cumulative return based on $100 invested at beginning of the period vs. the S&P 500 and DJ US Containers & Packaging. Assumes reinvestment of dividends.Net Sales$601$634$764$974$904$400$600$800$1,000FY '17FY '18FY '19FY '20FY '21Free Cash FlowOperating IncomeOperating EBITDA*In millions of dollars, except stock performance data. Operating EBITDA and adjusted free cash ﬂow are non-GAAP ﬁnancial measures. See reconciliation located within this document.Stock Performance**$7,095$7,869$8,878$11,709$13,850$6,000$8,000$10,000$12,000$14,000FY '17FY '18FY '19FY '20FY '21$1,327$1,380$1,530$2,157$2,224$1,200$1,500$1,800$2,100$2,400FY '17FY '18FY '19FY '20FY '21Net Sales $13,850$11,70918%Operating Income1,2921,17910%Operating EBITDA 2,2242,1573%Free Cash Flow 904947-5%2021 Fiscal Review*UNITEDSTATESSECURITIESANDEXCHANGECOMMISSIONWashington,D.C.20549FORM10-K☒ANNUALREPORTPURSUANTTOSECTION13OR15(d)OFTHESECURITIESEXCHANGEACTOF1934FortheFiscalYearEndedOctober2,2021OR☐TRANSITIONREPORTPURSUANTTOSECTION13OR15(d)OFSECURITIESEXCHANGEACTOF1934ForthetransitionperiodfromtoCommissionFileNumber001-35672BERRYGLOBALGROUP,INC.ADelawarecorporation101OakleyStreet,Evansville,Indiana,47710(812)424-2904IRSemployeridentificationnumber20-5234618SecuritiesregisteredpursuanttoSection12(b)oftheAct:TitleofEachClassTradingSymbol(s)NameofEachExchangeonWhichRegisteredCommonStock,$0.01parvaluepershareBERYNewYorkStockExchangeLLCIndicatebycheckmarkiftheregistrantisawell-knownseasonedissuer,asdefinedinRule405oftheSecuritiesAct.Yes☒No☐IndicatebycheckmarkiftheregistrantisnotrequiredtofilereportspursuanttoSection13orSection15(d)oftheAct.Yes☐No☒Indicatebycheckmarkwhethertheregistrant:(1)hasfiledallreportsrequiredtobefiledbySection13or15(d)oftheSecuritiesExchangeActof1934duringthepreceding12months(orforsuchshorterperiodthattheregistrantwasrequiredtofilesuchreports),and(2)hasbeensubjecttosuchfilingrequirementsforthepast90days.Yes☒No☐IndicatebycheckmarkwhethertheregistranthassubmittedelectronicallyeveryInteractiveDataFilerequiredtobesubmittedpursuanttoRule405ofRegulationS-T(§232.405ofthischapter)duringthepreceding12months(orforsuchshorterperiodthattheregistrantwasrequiredtosubmitsuchfiles).Yes☒No☐Indicatebycheckmarkwhethertheregistrantisalargeacceleratedfiler,anacceleratedfiler,anon-acceleratedfiler,asmallerreportingcompany,oranemerginggrowthcompany.Seethedefinitionsof“largeacceleratedfiler,”“acceleratedfiler,”“smallerreportingcompany,”and“emerginggrowthcompany”inRule12b-2oftheExchangeActLargeAcceleratedFiler☒Acceleratedfiler☐Non-acceleratedfiler☐Smallreportingcompany☐Emerginggrowthcompany☐Ifanemerginggrowthcompany,indicatebycheckmarkiftheregistranthaselectednottousetheextendedtransitionperiodforcomplyingwithanyneworrevisedfinancialaccountingstandardsprovidedpursuanttoSection13(a)oftheExchangeAct.☐Indicatebycheckmarkwhethertheregistranthasfiledareportonandattestationtoitsmanagement’sassessmentoftheeffectivenessofinternalcontroloverfinancialreportingunderSection404(b)oftheSarbanes-OxleyAct(15U.S.C.7262(b))bytheregisteredpublicaccountingfirmthatpreparedorissueditsauditreport.☒Indicatebycheckmarkwhethertheregistrantisashellcompany(asdefinedinRule12b-2oftheSecuritiesExchangeActof1934).Yes☐No☒Theaggregatemarketvalueofthecommonstockoftheregistrantheldbynon-affiliateswasapproximately$8.3billionasofApril3,2021,thelastbusinessdayoftheregistrant’smostrecentlycompletedsecondfiscalquarter.TheaggregatemarketvaluewascomputedusingtheclosingsalepriceasreportedontheNewYorkStockExchange.AsofNovember18,2021,therewere135.6millionsharesofcommonstockoutstanding.DOCUMENTSINCORPORATEDBYREFERENCEPortionsofBerryGlobalGroup,Inc.’sProxyStatementforits2022AnnualMeetingofStockholdersareincorporatedbyreferenceintoPartIIIofthisreport.CAUTIONARYSTATEMENTCONCERNINGFORWARD-LOOKINGSTATEMENTSInformationincludedinorincorporatedbyreferenceinthisForm10-KandotherfilingswiththeU.S.SecuritiesandExchangeCommission(the“SEC”)andtheCompany’spressreleasesorotherpublicstatements,containsormaycontainforward-lookingstatements.Thisreportincludes“forward-looking’statementswithrespecttoourfinancialcondition,resultsofoperationsandbusinessandourexpectationsorbeliefsconcerningfutureevents.Thesestatementscontainwordssuchas“believes,”“expects,”“may,”“will,”“should,”“would,”“could,”“seeks,”“approximately,”“intends,”“plans,”“estimates,”“project,”“outlook,”“anticipates,”or“lookingforward”orsimilarexpressionsthatrelatetoourstrategy,plans,intentions,orexpectations.Allstatementswemakerelatingtoourestimatedandprojectedearnings,margins,costs,expenditures,cashflows,growthrates,andfinancialresultsortoourexpectationsregardingfutureindustrytrendsareforward-lookingstatements.Inaddition,we,throughourseniormanagement,fromtimetotimemakeforward-lookingpublicstatementsconcerningourexpectedfutureoperationsandperformanceandotherdevelopments.Theseforward-lookingstatementsaresubjecttorisksanduncertaintiesthatmaychangeatanytime,and,therefore,ouractualresultsmaydiffermateriallyfromthosethatweexpected.Allforward-lookingstatementsaremadeonlyasofthedatehereof,andweundertakenoobligationtopubliclyupdateorreviseanyforward-lookingstatementasaresultofnewinformation,futureeventsorotherwise,exceptasotherwiserequiredbylaw.Additionally,wecautionreadersthatthelistofimportantfactorsdiscussedinthesectiontitled“RiskFactors”maynotcontainallofthematerialfactorsthatareimportanttoyou.Inaddition,inlightoftheserisksanduncertainties,themattersreferredtointheforward-lookingstatementscontainedinthisreportmaynotinfactoccur.Accordingly,readersshouldnotplaceunduerelianceonthosestatements.1TABLEOFCONTENTSFORM10-KFORTHEFISCALYEARENDEDOCTOBER2,2021PagePARTIItem1.BUSINESS............................................................3Item1A.RISKFACTORS........................................................7Item1B.UNRESOLVEDSTAFFCOMMENTS........................................10Item2.PROPERTIES..........................................................10Item3.LEGALPROCEEDINGS..................................................10Item4.MINESAFETYDISCLOSURES............................................10PARTIIItem5.MARKETFORREGISTRANT’SCOMMONEQUITY,RELATEDSTOCKHOLDERMATTERS,ANDISSUERPURCHASESOFEQUITYSECURITIES.................11Item6.REMOVEDANDRESERVED..............................................Item7.MANAGEMENT’SDISCUSSIONANDANALYSISOFFINANCIALCONDITIONANDRESULTSOFOPERATIONS...............................................11Item7A.QUANTITATIVEANDQUALITATIVEDISCLOSURESABOUTMARKETRISK.......17Item8.FINANCIALSTATEMENTSANDSUPPLEMENTARYDATA.....................18Item9.CHANGESINANDDISAGREEMENTSWITHACCOUNTANTSONACCOUNTINGANDFINANCIALDISCLOSURE...........................................18Item9A.CONTROLSANDPROCEDURES...........................................18Item9B.OTHERINFORMATION.................................................18Item9C.DISCLOSUREREGARDINGFOREIGNJURISDICTIONSTHATPREVENTINSPECTIONS.........................................................18PARTIIIItem10.DIRECTORS,EXECUTIVEOFFICERSANDCORPORATEGOVERNANCE..........19Item11.EXECUTIVECOMPENSATION............................................19Item12.SECURITYOWNERSHIPOFCERTAINBENEFICIALOWNERSANDMANAGEMENTANDRELATEDSTOCKHOLDERMATTERS.................................19Item13.CERTAINRELATIONSHIPSANDRELATEDTRANSACTIONSANDDIRECTORINDEPENDENCE......................................................19Item14.PRINCIPALACCOUNTANTFEESANDSERVICES.............................19PARTIVItem15.EXHIBITSANDFINANCIALSTATEMENTSCHEDULES........................20Item16.FORM10-KSUMMARY..................................................202Item1.BUSINESS(Inmillionsofdollars,exceptasotherwisenoted)GeneralBerryGlobalGroup,Inc.(“Berry,”“we,”orthe“Company”)isaleadingglobalsupplierofabroadrangeofinnovativerigid,flexibleandnon-wovenproductsusedeverydaywithinconsumerandindustrialendmarkets.Wesellourproductspredominantlyintostable,consumer-orientedendmarkets,suchashealthcare,personalcare,andfoodandbeverage.Ourcustomersconsistofadiversemixofleadingglobal,national,mid-sizedregionalandlocalspecialtybusinesses.Thesizeandscopeofourcustomernetworkallowsustointroducenewproductswedeveloporacquiretoavastaudiencethatisfamiliarwithourbusiness.ForthefiscalyearendedOctober2,2021(“fiscal2021”),nosinglecustomerrepresentedmorethan5%ofnetsalesandourtoptencustomersrepresented15%ofnetsales.Webelieveourmanufacturingprocesses,manufacturingfootprintandourabilitytoleverageourscaletoreducecosts,positionsusasalow-costmanufacturerrelativetoourcompetitors.Additionalfinancialinformationaboutoursegmentsisprovidedin“Management’sDiscussionandAnalysisofFinancialConditionandResultsofOperations”andthe“NotestoConsolidatedFinancialStatements,”whichareincludedelsewhereinthisForm10-K.SegmentOverviewTheCompany’soperationsareorganizedintofourreportingsegments:ConsumerPackagingInternational,ConsumerPackagingNorthAmerica,EngineeredMaterials,andHealth,Hygiene&Specialties.Thestructureisdesignedtoalignuswithourcustomers,provideimprovedservice,drivefuturegrowth,andtofacilitatesynergiesrealization.ConsumerPackagingInternationalTheConsumerPackagingInternationalsegmentisamanufacturerofrigidproductsthatprimarilyservicesnon-NorthAmericanmarkets.ProductgroupswithinthesegmentincludeClosuresandDispensingSystems,PharmaceuticalDevicesandPackaging,BottlesandCanisters,Containers,andTechnicalComponents.Infiscal2021,ConsumerPackagingInternationalaccountedfor30%ofourconsolidatednetsales.ConsumerPackagingNorthAmericaTheConsumerPackagingNorthAmericasegmentisamanufacturerofrigidproductsthatprimarilyservicesNorthAmericanmarkets.ProductgroupswithinthesegmentincludeContainersandPails,Foodservice,ClosuresandOvercaps,BottlesandPrescriptionVials,andTubes.Infiscal2021,ConsumerPackagingNorthAmericaaccountedfor23%ofourconsolidatednetsales.EngineeredMaterialsTheEngineeredMaterialssegmentisamanufacturerofflexibleproductsthatservicesprimarilyNorthAmericanandEuropeanmarkets.ProductgroupswithinthesegmentincludeStretchandShrinkFilms,ConverterFilms,InstitutionalCanLiners,FoodandConsumerFilms,RetailBags,andAgricultureFilms.Infiscal2021,EngineeredMaterialsaccountedfor24%ofourconsolidatednetsales.Health,Hygiene&SpecialtiesTheHealth,Hygiene&Specialtiessegmentisamanufacturerofnon-wovenandrelatedproductsthatservicesglobalmarkets.ProductgroupswithinthesegmentincludeHealthcare,Hygiene,Specialties,andTapes.Infiscal2021,Health,Hygiene&Specialtiesaccountedfor23%ofourconsolidatednetsales.Marketing,Sales,andCompetitionWereachourlargeanddiversifiedcustomerbasethroughadirectsalesforceofdedicatedprofessionalsandthestrategicuseofdistributors.Ourscaleenablesustodedicatecertainsalesandmarketingeffortstoparticularproductsorcustomers,whenapplicable,whichenablesustodevelopexpertisethatwebelieveisvaluedbyourcustomers.3ThemajormarketsinwhichtheCompanysellsitsproductsarehighlycompetitive.Areasofcompetitionincludeservice,innovation,quality,andprice.Thiscompetitionissignificantastoboththesizeandthenumberofcompetingfirms.CompetitorsincludebutarenotlimitedtoAmcor,Silgan,Aptar,PactivEvergreen,3M,andFitesa.RawMaterialsOurprimaryrawmaterialispolymerresin.Inaddition,weuseothermaterialssuchasbutylrubber,adhesives,paperandpackagingmaterials,linerboard,rayon,polyesterfiber,andfoil,invariousmanufacturingprocesses.Whiletemporaryindustry-wideshortagesofrawmaterialshaveoccurred,wehavehistoricallybeenabletomanagethesupplychaindisruptionbyworkingcloselywithoursuppliersandcustomers.Supplyshortagescanleadtoincreasedrawmaterialpricevolatility,whichweexperiencedinfiscal2021.Increasesinthepriceofrawmaterialsaregenerallyabletobepassedontocustomersthroughcontractualpricemechanismsovertimeandothermeans.Weexpectsupplychainchallengestocontinueintofiscal2022andwillcontinuetoworkcloselywithoursuppliersandcustomersinanefforttominimizeanyimpact.Patents,TrademarksandOtherIntellectualPropertyWecustomarilyseekpatentandtrademarkprotectionforourproductsandbrandswhileseekingtoprotectourproprietaryknow-how.Whileimportanttoourbusinessintheaggregate,salesofanyoneindividuallypatentedproductisnotconsideredmaterialtoanyspecificsegmentortheconsolidatedresults.EnvironmentalandSustainabilityWefocusoursustainabilityeffortsonproductstewardship,operationalexcellence,humancapitalmanagementandcommunityengagement.WebelievetherewillalwaysbealeadingroleforBerry’sproductofferingsduetoourabilitytopromotecustomerbrandsbyprovidingsuperiorclarity,protection,designversatility,consumersafety,convenience,costefficiency,barrierproperties,andenvironmentalperformance.Sustainabilityiscomprehensivelyembeddedacrossourbusiness,fromhowwerunourmanufacturingoperationsmoreefficientlytotheinvestmentswearemakinginsustainablepackaginginnovation.Wecollaboratewithcustomers,suppliers,andinnovatorstocreateindustry-leadingsolutionswhichofferlighterweightproducts,enablelongershelf-life,andprotectproductsthroughoutsupplychains.Webelieveresponsiblepackagingistheanswertoachievinglesswasteandthatresponsiblepackagingrequiresfourthings—innovativedesign,continueddevelopmentofrenewableandadvancedrawmaterials,wastemanagementinfrastructure,andconsumerparticipation.Berryiscommittedtoresponsiblepackagingandhas(1)targeted100%reusable,recyclable,orcompostablepackagingby2025,(2)significantlyincreasedouruseofcircularmaterialsbyenteringintoofftakeagreementsforbothmechanicallyrecycledandadvancedrecycledmaterialsaswellasexpandedourownrecyclingoperationsinNorthAmericaandEuropeinordertomeetourtargeted30%circularmaterialsby2030,and(3)workedtodrivegreaterrecyclingratesaroundtheworld.Withourglobalscale,deepindustryexperience,andstrongcapabilities,weareuniquelypositionedtoleadthewayinthedesignanddevelopmentofmoresustainablepackaging.Wealsoworkgloballyoncontinuousimprovementofemployeesafetyandengagement,energyusage,waterefficiency,wastereduction,recyclingaswellasreducingourGreenHouseGas(GHG)emissions.Ourteamsarededicatedtoimprovingthecircularityandreducingthecarbonfootprintofourproducts.WeanticipatehigherdemandforproductswithloweremissionsintensitywherepolymerresinsbasedproductsareinherentlywellpositionedsincetheytypicallyhavelowerGHGemissionsperfunctionalunitcomparedtoheavieralternativessuchaspaper,metalandglass.Additionally,thereisalsosignificantworkbeingdoneontheuseofrecycledandbiocontent,whichhaslowerassociatedGHGemissionscomparedtoothervirginmaterials.HumanCapitalandEmployeesOverviewNeverbeforeinBerry’slonghistoryhasourmissionof‘AlwaysAdvancingtoProtectWhat’sImportant’beenmorecriticalasweareproudtoworkalongsideourcustomerstosupplyproductsthataretrulyessentialtoeverydaylife.Thesafetyandsupplyofnecessitiessuchasfood,medicines,sanitizingproducts,andprotectivehealthcareapparelhasneverbeenmorevital.Wecontinuetoprioritizethehealthandwell-beingofthecommunitiesweserveaswellasouremployeesandtheirfamilies,asourglobalteamsremaindedicatedtocontinuinglyworkingseamlesslywithourbusinesspartnerstoensurecriticalkeysupplychainsremainuninterruptedandoperational.4HealthandSafetyEmployeesafetyisournumberonecorevalueatBerry.Webelievewhenitcomestoemployeesafety,ourbestshouldalwaysbeourstandard.ItisthroughtheadherencetoourglobalEnvironment,Health,andSafetyprincipleswehavebeenabletoidentifyandeliminateoperationalrisksanddrivecontinuousimprovement,resultinginanOSHAincidentratebelow1.0whichissignificantlylowerthantheindustryaverage.SpecificallyrelatedtoBerry’sinternalCOVID-19protocols,ourrigorousprecautionarymeasureshaveincludedtheformationofglobalandregionalresponseteamsthatmaintaincontactwithauthoritiesandexperts,quarantineprotocols,disinfectionmeasuresandotheractionsdesignedtohelpprotectemployees.Additionally,whilemanydonotrealizethecrucialroleourproductsplayininfectionpreventionandprotectingfromthespreadofdiseaseandcontamination,weareproudtobeapartofthefightandareprivilegedtosupportthegrowingneedformanyofourproductsascommunitiesacrosstheglobecontinuetostrugglethroughtheCOVID-19pandemic.TalentandDevelopmentWeseektoattract,developandretainthebesttalentthroughoutthecompany.Duringthepastdecade,weestablishedandexpandedourrecruitingandtalentfunctions.OursuccessionmanagementstrategyfocusesonstructuredsuccessionframeworkbasedonLearningAgilityandmultipleyearsofperformance.Ourholisticapproachtodevelopingkeymanagersandidentifyingfutureleadersincludeschallengingassignments,formaldevelopmentplansandprofessionalcoaching.Resourcestosupportemployeesintheirpersonalandprofessionaldevelopmentinclude:LeadershipFoundations;•OperationsDevelopmentPrograms;•Core&AdvancedSellingPrograms;•PartneringforthePlanet;•UniversityPartnerships;•Internale-learninganddevelopmentplatforms;•Annualcompliance,antitrust,bribery,corruption,businesscodeofconductandethicstrainingforkeymanagementlevel;and•Variousothertuitionreimbursementprograms,apprenticeshipandinstructionalprograms.EmployeeEngagementWeseektoensurethateveryoneismotivatedtoperformtheirbestworkeveryday.Tofurtherthatobjective,ourengagementapproachfocusesonclearcommunicationandrecognition.Wecommunicatethroughregularemployeemeetings,atboththecorporateandoperatingdivisionlevels,withbusinessandmarketupdatesandinformationonproduction,safety,qualityandotheroperatingmetrics.Wehavemanyrecognition-orientedawardsthroughoutourcompany,includingourcorporateanddivisionalawardsofexcellence.Weconductcompany-wideengagementsurveyswhichhavegenerallyindicatedhighlevelsofengagementandtrustinBerry’sleadership,keystrategiesandinitiatives.Resourcestosupportemployeecommunicationandengagementinclude:•Leadershipsharingglobalperspectives,innovation,andcompanydirection;•Peergroupssharingandsupportingofcommoninterestsandpartnershipamongemergingleaders;•Townhallsfosteringthe“OneBerry”culture;and•Variousotherinternalbusinessupdates,communications,bulletins,digitalsignageandnewsletters.InclusionandDiversityAstheworld’sleadingglobalpackagingcompany,westrivetobuildasafeandinclusiveculturewhereeveryemployeefeelsvaluedandtreatedwithrespect.Webelieveinclusionhelpsdriveengagement,innovationandorganizationalgrowth.Ourfocustodatehasbeenonprovidingtrainingforourglobalworkforce,expandingouremployeeresourcegroups,andincreasingawarenessabouttheimportanceofhavingacultureofinclusion.ResourcegroupstosupportemployeeacceptanceandinclusionincludingUSVeterans,employeeswithdisabilities,womenledalliances,employeesofAfricandescent,andsexualorientation.5EthicsGoodcorporategovernanceandtransparencyarefundamentaltoachievingourvisionofbecomingthepremierpackagingsolutionsproviderinallourmarkets.Ouremployeesareexpectedtoactwithintegrityandobjectivityandtoalwaysstrivetoenhanceourreputationandperformance.WemaintainaGlobalCodeofBusinessEthicswhichisattestedbyeveryBerryemployeeandprovidestheCompany’sframeworkforethicalbusiness.Weprovidetargetedannualtrainingacrosstheglobetoreinforceourcommitmenttoethicsanddriveadherencetothelawsineachjurisdictioninwhichweoperate.AvailableInformationWemakeavailable,freeofcharge,ourannualreportsonForm10-K,quarterlyreportsonForm10-Q,currentreportsonForm8-Kandamendments,ifany,tothosereportsthroughourinternetwebsiteassoonasreasonablypracticableaftertheyhavebeenelectronicallyfiledwiththeSEC.Ourinternetaddressiswww.berryglobal.com.Theinformationcontainedonourwebsiteisnotbeingincorporatedherein.6Item1A.RISKFACTORSOperationalRisksEffectivelymanagingchangeandgrowth.Ourfuturerevenueandoperatingresultswilldependonourabilitytoeffectivelymanagetheanticipatedgrowthandmanagingcustomertimelines.Wearecontinuouslyinvestingingrowthareasandexpandingouroperations,increasingourheadcountandexpandingintonewproductofferings.Thisgrowthhasplacedsignificantdemandsonourmanagementaswellasourfinancialandoperationalresources,andcontinuedgrowthpresentsseveralchallenges,including:•expandingmanufacturingcapacity,maintainingqualityandincreasingproduction;•identifying,attractingandretainingqualifiedpersonnel;and•increasingourregulatorycompliancecapabilities,particularlyinnewlinesofbusinessorproductofferings.Afailuretoadequatelymanagetheseandotherrisksrelatedtoourgrowthcouldadverselyaffectourbusiness,financialconditionandresultsofoperations.Rawmaterialinflationorshortageofavailablematerialscouldharmourfinancialconditionandresultsofoperations.Rawmaterialsaresubjecttopricefluctuationsandavailability,duetoexternalfactors,suchastheCOVID-19pandemic,weather-relatedevents,orothersupplychainchallenges,thatarebeyondourcontrol.Temporaryindustry-wideshortagesofrawmaterialshaveoccurredinfiscal2021,whichhasledtoincreasedrawmaterialpricevolatilityandwhichcouldcontinueintofiscal2022.Additionally,oursupplierscouldexperiencecostincreasestoproducerawmaterialduetoincreasesincarbonpricing.Historicallywehavebeenabletomanagetheimpactofhighercostsbyincreasingoursellingprices.Wehavegenerallybeenwellpositionedtocaptureadditionalmarketshareasourprimarilyrawmaterial,polymerresin,istypicallyalowercostandmoreversatilesubstratecomparedtoalternatives.However,rawmaterialshortagesorourinabilitytotimelypassthroughincreasedcoststoourcustomersmayadverselyaffectourbusiness,financialconditionandresultsofoperations.Wemaynotbeabletocompetesuccessfullyandourcustomersmaynotcontinuetopurchaseourproducts.Wecompetewithmultiplecompaniesineachofourproductlinesonthebasisofanumberofconsiderations,includingprice,service,quality,productcharacteristicsandtheabilitytosupplyproductstocustomersinatimelymanner.Ourproductsalsocompetewithvariousothersubstrates.Someofthesecompetitiveproductsarenotsubjecttotheimpactofchangesinresinprices,whichmayhaveasignificantandnegativeimpactonourcompetitivepositionversussubstituteproducts.Additionally,consumer’sviewonenvironmentalconsiderationcouldpotentiallyimpactdemandforourproductsthatutilizefossilfuelbasedmaterialsintheirmanufacturing.Ourcompetitorsmayhavefinancialandotherresourcesthataresubstantiallygreaterthanoursandmaybebetterablethanustowithstandhighercosts.Competitionandproductpreferencechangescouldresultinourproductslosingmarketshareorourhavingtoreduceourprices,eitherofwhichcouldhaveamaterialadverseeffectonourbusiness,financialconditionandresultsofoperations.Inaddition,sincewedonothavelong-termarrangementswithmanyofourcustomers,thesecompetitivefactorscouldcauseourcustomerstoshiftsuppliersand/orpackagingmaterialquickly.Oursuccessdepends,inpart,onourabilitytorespondtimelytocustomerandmarketchanges.Wemaypursueandexecuteacquisitionsordivestitures,whichcouldadverselyaffectourbusiness.Aspartofourgrowthstrategy,weconsidertransactionsthateithercomplementorexpandourexistingbusinessandcreateeconomicvalue.Transactionsinvolvespecialrisks,includingthepotentialassumptionofunanticipatedliabilitiesandcontingenciesaswellasdifficultiesinintegratingacquiredbusinessesorcarving-outdivestedbusinesses,whichmayresultinsubstantialcosts,delaysorotherproblemsthatcouldadverselyaffectourbusiness,financialconditionandresultsofoperations.Furthermore,wemaynotrealizeallofthesynergiesweexpecttoachievefromourcurrentstrategicinitiativesduetoavarietyofrisks.Ifweareunabletoachievethebenefitsthatweexpecttoachievefromourstrategicinitiatives,itcouldadverselyaffectourbusiness,financialconditionandresultsofoperations.7Intheeventofacatastrophiclossofoneofourkeymanufacturingfacilities,ourbusinesswouldbeadverselyaffected.Whilewemanufactureourproductsinalargenumberofdiversifiedfacilitiesandmaintaininsurancecoveringourfacilities,includingbusinessinterruptioninsurance,acatastrophiclossoftheuseofalloraportionofoneofourkeymanufacturingfacilitiesduetoaccident,laborissues,weatherconditions,naturaldisaster,pandemicorotherwise,whethershortorlong-term,couldresultinsignificantlosses.Employeeretention,laborcostinflationorthefailuretorenewcollectivebargainingagreementscoulddisruptourbusiness.Asoftheendoffiscal2021,weemployedapproximately47,000employeeswithapproximately20%ofthoseemployeesbeingcoveredbycollectivebargainingagreements.Thecollectivebargainingagreementscoveringamajorityoftheseemployeesexpireannuallyandasaresult,aredueforrenegotiationinfiscalyearending2022(“fiscal2022”).Ourrelationswithemployeesundercollectivebargainingagreementsremainsatisfactoryandtherehavebeennosignificantworkstoppagesorotherlabordisputesduringthepastthreeyears.However,wemaynotbeabletomaintainconstructiverelationshipswithlaborunionsortradecouncilsandmaynotbeabletosuccessfullynegotiatenewcollectivebargainingagreementsonsatisfactorytermsinthefuture.Laborissubjecttocostinflationandavailability,duetoexternalfactors,suchastheCOVID-19pandemicandworkforceparticipationrates,thatarebeyondourcontrol.Asaresult,therecanbenoassurancewewillbeabletorecruit,train,assimilate,motivateandretainemployeesinthefuture.Thelossofasubstantialnumberoftheseemployeesoraprolongedlabordisputecoulddisruptourbusinessandresultinsignificantlosses.Wedependoninformationtechnologysystemsandinfrastructuretooperateourbusiness,andincreasedcybersecuritythreats,systeminadequacies,andfailurescoulddisruptouroperations,compromisecustomer,employee,vendorandotherdatawhichcouldnegativelyaffectourbusiness.Werelyontheefficientanduninterruptedoperationofinformationtechnologysystemsandnetworks.Thesesystemsandnetworksarevulnerabletoincreasedcybersecuritythreatsandmoresophisticatedcomputercrime,energyinterruptions,telecommunicationsfailures,breakdowns,naturaldisasters,terrorism,war,computermalwareorothermaliciousintrusions.Wealsomaintainandhaveaccesstosensitive,confidentialorpersonaldataorinformationthatissubjecttoprivacyandsecuritylaws,regulations,andcustomercontrols.Despiteoureffortstoprotectsuchinformation,securitybreaches,misplacedorlostdataandprogrammingdamagescouldresultinproductiondowntimes,operationaldisruptions,transactionerrors,lossofbusinessopportunities,violationofprivacylawsandlegalliability,fines,penaltiesornegativepublicitycouldresultinanegativeimpactonthebusiness.Whilewehavenothadmaterialsysteminterruptionshistoricallyassociatedwiththeserisks,therecanbenoassurancethattheseadvancedandpersistentthreatswillpreventfutureinterruptionsthatcouldresultinsignificantlosses.FinancialandLegalRisksOursubstantialindebtednesscouldaffectourabilitytomeetourobligationsandmayotherwiserestrictouractivities.Wehaveasignificantamountofindebtedness,whichrequiressignificantinterestpayments.Ourinabilitytogeneratesufficientcashflowtosatisfyourdebtobligations,ortorefinanceourobligationsoncommerciallyreasonableterms,wouldhaveamaterialadverseeffectonourbusiness,financialconditionandresultsofoperations.Additionally,servicingtheinterestobligationsofourexistingindebtednesscouldlimitourabilitytorespondtobusinessopportunities,includinggrowingourbusinessthroughacquisitionsorincreasedlevelsofcapitalexpenditures.Goodwillandotherintangiblesrepresentasignificantamountofournetworth,andafuturewrite-offcouldresultinlowerreportednetincomeandareductionofournetworth.Wehaveasubstantialamountofgoodwill.Futurechangesinmarketmultiples,costofcapital,expectedcashflows,orotherexternalfactors,mayadverselyaffectourbusinessandcauseourgoodwilltobeimpaired,resultinginanon-cashchargeagainstresultsofoperationstowriteoffgoodwillorindefinitelivedintangibleassetsfortheamountofimpairment.Ifafuturewrite-offisrequired,thechargecouldresultinsignificantlosses.Ourinternationaloperationsposeriskstoourbusinessthatmaynotbepresentwithourdomesticoperations.Foreignoperationsaresubjecttocertainrisksthatareuniquetodoingbusinessinforeigncountries.Theserisksincludefluctuationsinforeigncurrencyexchangerates,inflation,economicorpoliticalinstability,shippingdelaysin8ourproductsandreceivingdelaysofrawmaterials,changesinapplicablelaws,includingassessmentsofincomeandnon-incomerelatedtaxes,reducedprotectionofintellectualproperty,inabilitytoreadilyrepatriatecashtotheU.S.effectively,andregulatorypoliciesandvarioustraderestrictionsincludingpotentialchangestoexporttaxesorcountervailingandanti-dumpingdutiesforexportedproductsfromthesecountries.Anyoftheseriskscoulddisruptourbusinessandresultinsignificantlosses.WearealsosubjecttotheForeignCorruptPracticesActandotheranti-briberyandanti-corruptionlawsthatgenerallybarbribesorunreasonablegiftstoforeigngovernmentsorofficials.Wehaveimplementedsafeguards,trainingandpoliciestodiscouragethesepracticesbyouremployeesandagents.However,ourexistingsafeguards,trainingandpoliciestoassurecomplianceandanyfutureimprovementsmayprovetobelessthaneffectiveandouremployeesoragentsmayengageinconductforwhichwemightbeheldresponsible.Ifemployeesviolateourpolicies,wemaybesubjecttoregulatorysanctions.Violationsoftheselawsorregulationscouldresultinsanctionsincludingfines,debarmentfromexportprivilegesandpenaltiesandcouldadverselyaffectourbusiness,financialconditionandresultsofoperations.Currentandfutureenvironmentalandothergovernmentalrequirementscouldadverselyaffectourfinancialconditionandourabilitytoconductourbusiness.Whilewehavenotbeenrequiredhistoricallytomakesignificantcapitalexpendituresinordertocomplywithapplicableenvironmentallawsandregulations,wecannotpredictourfuturecapitalexpenditurerequirementsbecauseofcontinuallychangingcompliancestandardsandenvironmentaltechnology.Furthermore,violationsorcontaminatedsitesthatwedonotknowabout(includingcontaminationcausedbypriorownersandoperatorsofsuchsitesornewlydiscoveredinformation)couldresultinadditionalcomplianceorremediationcostsorotherliabilities,whichcouldbematerial.Inaddition,federal,state,local,andforeigngovernmentscouldenactlawsorregulationsconcerningenvironmentalmatters,suchasgreenhousegasemissions,thatincreasethecostofproducing,orotherwiseadverselyaffectthedemandfor,packagingproducts.Legislationthatwouldprohibit,taxorrestrictthesaleoruseofcertaintypesofproductswouldrequirediversionofsolidwastesuchaspackagingmaterialsfromdisposalinlandfills,hasbeenormaybeintroduced.Forexample,theEuropeanUnion(“EU”)recentlyintroducedanon-recycledpolymerresinpackagingwastebloc-widelevy.Whileeachmemberstateisevaluatinghowtofundthelevywhichrangesfromtaxingthesectororpassingcostsdownthelinetoallbusinessesandendconsumers,webelievethatanysuchlawspromulgatedtodatehavenothadamaterialadverseeffectonus,aswehavehistoricallybeenabletomanagetheimpactofhighercostsbyincreasingoursellingprices.However,therecanbenoassurancethatfuturelegislationorregulationwouldnothaveamaterialadverseeffectonus.Changesintaxlawsorchangesinourgeographicmixofearningscouldhaveamaterialimpactonourfinancialconditionandresultsofoperation.Wearesubjecttoincomeandothertaxesinthemanyjurisdictionsinwhichweoperate.Taxlawsandregulationsarecomplexandthedeterminationofourglobalprovisionforincometaxesandcurrentanddeferredtaxassetsandliabilitiesrequiresjudgmentandestimation.Wearesubjecttoroutineexaminationsofourincometaxreturns,andtaxauthoritiesmaydisagreewithourtaxpositionsandassessadditionaltax.Ourfutureincometaxescouldalsobenegativelyimpactedbyourmixofearningsinthejurisdictionsinwhichweoperatebeingdifferentthananticipatedgivendifferencesinstatutorytaxratesinthecountriesinwhichweoperate.Inaddition,taxpolicyeffortstoraiseglobalcorporatetaxratescouldadverselyimpactourtaxrateandsubsequenttaxexpense.Wemaynotbesuccessfulinprotectingourintellectualpropertyrights,includingourunpatentedproprietaryknow-howandtradesecrets,orinavoidingclaimsthatweinfringedontheintellectualpropertyrightsofothers.Inadditiontorelyingonpatentandtrademarkrights,werelyonunpatentedproprietaryknow-howandtradesecrets,andemployvariousmethods,includingconfidentialityagreementswithemployeesandconsultants,customersandsupplierstoprotectourknow-howandtradesecrets.However,thesemethodsandourpatentsandtrademarksmaynotaffordcompleteprotectionandtherecanbenoassurancethatotherswillnotindependentlydeveloptheknow-howandtradesecretsordevelopbetterproductionmethodsthanus.Further,wemaynotbeabletodetercurrentandformeremployees,contractorsandotherpartiesfrombreachingagreementsandmisappropriatingproprietaryinformationanditispossiblethatthirdpartiesmaycopyorotherwiseobtainanduseourinformationandproprietarytechnologywithoutauthorizationorotherwiseinfringeonourintellectualpropertyrights.Furthermore,noassurancecanbegiventhatwewillnotbesubjecttoclaimsassertingtheinfringementoftheintellectualpropertyrightsofthirdpartiesseekingdamages,thepaymentofroyaltiesorlicensingfeesand/orinjunctionsagainstthesaleofourproducts.Anysuchlitigationcouldbeprotractedandcostlyandcouldresultinsignificantlosses.9Item1B.UNRESOLVEDSTAFFCOMMENTSNone.Item2.PROPERTIESOurprimarymanufacturingfacilitiesbygeographicareawereasfollows:GeographicRegionTotalFacilitiesLeasedFacilitiesUSandCanada...........................10920Europe.................................12826Restofworld............................4528Item3.LEGALPROCEEDINGSBerryispartytovariouslegalproceedingsinvolvingroutineclaimswhichareincidentaltoourbusiness.Althoughourlegalandfinancialliabilitywithrespecttosuchproceedingscannotbeestimatedwithcertainty,webelievethatanyultimateliabilitywouldnotbematerialtothebusiness,financialcondition,resultsofoperationsorcashflows.Item4.MINESAFETYDISCLOSURESNotapplicable.10PARTIIItem5.MARKETFORREGISTRANT’SCOMMONEQUITY,RELATEDSTOCKHOLDERMATTERS,ANDISSUERPURCHASESOFEQUITYSECURITIESOurcommonstock“BERY”islistedontheNewYorkStockExchange.Asofthedateofthisfilingtherewerefewerthan500activerecordholdersofthecommonstock,butweestimatethenumberofbeneficialstockholderstobemuchhigherasanumberofoursharesareheldbybrokersordealersfortheircustomersinstreetname.Duringfiscal2020and2021,wedidnotdeclareorpayanycashdividendsonourcommonstock.IssuerPurchasesofEquitySecuritiesDuringthefourthquarteroffiscal2021,theCompanydidnotrepurchaseshares.AsofOctober2,2021,$393millionofauthorizedsharesremainedavailableforpurchaseunderthecurrentrepurchaseprogramwhichhasnoexpirationdateandmaybesuspendedatanytime.Item7.MANAGEMENT’SDISCUSSIONANDANALYSISOFFINANCIALCONDITIONANDRESULTSOFOPERATIONSOutlookTheCompanyisaffectedbygeneraleconomicandindustrialgrowth,rawmaterialavailability,costinflation,supplychaindisruptions,andgeneralindustrialproduction.TheCOVID-19pandemichasresultedinbothadvantagedanddisadvantagedproductswithinallsegments.Duringfiscal2022,weanticipateaheadwindastheadvantagedproducts,particularlyinourHealth,Hygiene&Specialtiessegment,relatedtotheCOVID-19pandemicmoderatewhilerecoveryofdisadvantagedproductslagswiththeultimateimpactbeingaffectedbyboththedurationcertainproductsremainadvantagedandtimingofwhendisadvantagedproductsnormalize.Ourbusinesshasbothgeographicandendmarketdiversity,whichreducestheeffectofanyoneofthesefactorsonouroverallperformance.Ourresultsareaffectedbyourabilitytopassthroughrawmaterialandothercostchangestoourcustomers,improvemanufacturingproductivityandadapttovolumechangesofourcustomers.Byprovidingadvantagedproductsintargetedmarkets,wecontinuetobelieveourunderlyinglong-termdemandfundamentalinalldivisionswillremainstrongaswefocusondeliveringprotectivesolutionsthatenhanceconsumersafetyandexecuteontheCompany’smissionstatementof“AlwaysAdvancingtoProtectWhat’sImportant.”Forfiscal2022,weprojectcashflowfromoperationsbetween$1.8to$1.7billion,whichincludesthebenefitfromthelaginrecoveryoffiscal2021inflation,andfreecashflowbetween$1billionto$900million.Projectedfiscal2022freecashflowassumes$800millionofcapitalspending.Forthedefinitionoffreecashflowandfurtherinformationrelatedtofreecashflowasanon-GAAPfinancialmeasure,see“LiquidityandCapitalResources.”RecentDispositionsDuringfiscal2021,theCompanycompletedthesaleofitsU.S.FlexiblePackagingConvertingbusinesswhichwasprimarilyoperatedintheEngineeredMaterialssegmentfornetproceedsof$140millionanditsnon-coreCzechRepublicReactionInjectionMoldingbusinesswhichwasoperatedintheConsumerPackagingInternationalsegmentfornetproceedsof$22million.Anetpretaxlossonthedivestituresof$22millionwasrecordedinfiscal2021withinRestructuringandtransactionactivitiesontheConsolidatedStatementsofIncome.TheU.SFlexiblePackagingConvertingbusinessandtheCzechRepublicReactionInjectionMoldingbusinessrecordednetsalesduringfiscal2020of$203millionand$41million,respectively.11DiscussionofResultsofOperationsforFiscal2021ComparedtoFiscal2020TheCompany’sU.S.basedresultsforfiscal2021andfiscal2020arebasedonafifty-threeandfifty-twoweekperiod,respectively.Businessintegrationexpensesconsistofrestructuringandimpairmentcharges,acquisitionanddivestiturerelatedcosts,andotherbusinessoptimizationcosts.Tablespresentdollarsinmillions.Adiscussionandanalysisregardingourresultsofoperationsforfiscalyear2020comparedtofiscalyear2019canbefoundonForm8-K,Exhibit99.1filedwiththeSEConSeptember2,2021.ConsolidatedOverviewFiscalYear20212020$Change%ChangeNetsales......................................$13,850$11,709$2,14118%Costofgoodssold...............................11,3529,3012,05122%Otheroperatingexpenses...........................1,2061,229(23)(2)%Operatingincome................................$1,292$1,179$11310%Netsales:Thenetsalesgrowthisprimarilyattributedtoincreasedsellingpricesof$1,429millionduetothepassthroughofinflation,organicvolumegrowthof4%,a$331millionfavorableimpactfromforeigncurrencychanges,anda$131millionincreasefromextrashippingdaysinfiscal2021.Theseincreaseswerepartiallyoffsetbyfiscal2020divestituresalesof$190million.Theorganicvolumegrowthwasprimarilyduetoorganicgrowthinvestments,continuedrecoveryofcertainmarketsthathadpreviouslybeenfacingCOVID-19headwinds,andhigherdemandinouradvantagedhealthandhygieneproductsastheresultofCOVID-19.Costofgoodssold:Thecostofgoodssoldincreaseisprimarilyattributedtoorganicvolumegrowth,productmix,inflation,anincreasefromforeigncurrencychanges,andextrashippingdaysinfiscal2021.Theseincreaseswerepartiallyoffsetbyfiscal2020divestiturecostofgoodssoldof$157million.OperatingIncome:Theoperatingincomeincreaseisprimarilyattributedtoa$100millionincreasefromtheorganicvolumegrowth,a$55millionfavorableimpactfromforeigncurrencychanges,a$37milliondecreaseinbusinessintegration,anda$22millionbenefitfromextrashippingdaysinfiscal2021.Theseimprovementsarepartiallyoffsetbya$75millionimpactfrominflationandproductmix,a$19millionincreaseindepreciationandamortization,andfiscal2020divestitureoperatingincomeof$18million.ConsumerPackagingInternationalFiscalYear20212020$Change%ChangeNetsales........................................$4,242$3,789$45312%Costofgoodssold.................................3,4163,00041614%Otheroperatingexpenses............................509516(7)(1)%Operatingincome.................................$317$273$4416%Netsales:ThenetsalesgrowthintheConsumerPackagingInternationalsegmentisprimarilyattributedtoincreasedsellingpricesof$130millionduetothepassthroughofinflation,organicvolumegrowthof3%,anda$227millionfavorableimpactfromforeigncurrencychanges,partiallyoffsetbyfiscal2020divestituresalesof$22million.TheorganicvolumegrowthwasprimarilyduetoorganicgrowthinvestmentsandrecoveryofcertainmarketsthathadpreviouslybeenfacingCOVID-19headwinds.Costofgoodssold:Thecostofgoodssoldincreaseisattributedtoinflation,organicvolumegrowth,anincreasefromforeigncurrencychanges,andanincreaseindepreciation,partiallyoffsetbyadecreaseinbusinessintegrationactivitiesandfiscal2020divestiturecostofgoodssold.OperatingIncome:Theoperatingincomeincreaseisprimarilyattributedtoa$23millionincreasefromtheorganicvolumegrowth,a$40millionfavorableimpactfromforeigncurrency,andan$18milliondecreaseinbusinessintegrationactivities,partiallyoffsetbya$33millionunfavorableimpactfrompricecostspread.12ConsumerPackagingNorthAmericaFiscalYear20212020$Change%ChangeNetsales........................................$3,141$2,560$58123%Costofgoodssold.................................2,6322,05158128%Otheroperatingexpenses............................233234(1)—Operatingincome.................................$276$275$10%Netsales:ThenetsalesgrowthintheConsumerPackagingNorthAmericasegmentisprimarilyattributedtoorganicvolumegrowthof4%,increasedsellingpricesof$439millionduetothepassthroughofinflation,anda$40millionincreasefromextrashippingdaysinfiscal2021.TheorganicvolumegrowthwasprimarilyduetoorganicgrowthinvestmentsandadvantagedfoodserviceproductsastheresultofCOVID-19.Costofgoodssold:Thecostofgoodssoldincreaseisattributedtoinflation,organicvolumegrowth,andanincreasefromextrashippingdaysinfiscal2021.OperatingIncome:Theoperatingincomebeingflatisprimarilyattributedtoa$27millionincreasefromtheorganicvolumegrowth,an$11milliondecreaseinbusinessintegrationactivities,andadecreaseindepreciationandamortization,partiallyoffsetbya$43millionunfavorableimpactfrompricecostspread.EngineeredMaterialsFiscalYear20212020$Change%ChangeNetsales........................................$3,309$2,766$54320%Costofgoodssold.................................2,7942,20958526%Otheroperatingexpenses............................214221(7)(3)%Operatingincome.................................$301$336$(35)(10)%Netsales:ThenetsalesgrowthintheEngineeredMaterialssegmentisprimarilyattributedtoincreasedsellingpricesof$475millionduetothepassthroughofinflation,organicvolumegrowthof4%,a$63millionfavorableimpactfromforeigncurrencychanges,anda$44millionincreasefromextrashippingdaysinfiscal2021,partiallyoffsetbyfiscal2020divestituresalesof$134million.TheorganicvolumegrowthwasprimarilyduetoorganicgrowthinvestmentsandrecoveryofcertainmarketsthathadpreviouslybeenfacingCOVID-19headwinds.Costofgoodssold:Thecostofgoodssoldincreaseisattributedtoinflation,organicvolumegrowth,anincreasefromforeigncurrencychanges,andanincreasefromextrashippingdaysinfiscal2021.TheseincreaseswerepartiallyoffsetbyFiscal2020divestiturecostofgoodssoldof$110million.OperatingIncome:Theoperatingincomedecreaseisprimarilyattributedtoa$49millionunfavorableimpactfrompricecostspreadandFiscal2020divestitureoperatingincomeof$14million,partiallyoffsetbya$14millionimprovementfromtheorganicvolumegrowthanda$6millionbenefitfromextrashippingdaysinfiscal2021.Health,Hygiene&SpecialtiesFiscalYear20212020$Change%ChangeNetsales........................................$3,158$2,594$56422%Costofgoodssold.................................2,5102,04146923%Otheroperatingexpenses............................250258(8)(3)%Operatingincome.................................$398$295$10335%Netsales:ThenetsalesgrowthintheHealth,Hygiene&Specialtiessegmentisprimarilyattributedtoorganicvolumegrowthof5%,increasedsellingpricesof$385millionduetothepassthroughofinflation,a$42millionincreasefromextrashippingdaysinfiscal2021,anda$41millionfavorableimpactfromforeigncurrencychanges,partiallyoffsetbyfiscal2020divestituresalesof$34million.TheorganicvolumegrowthwasprimarilyduetoorganicgrowthinvestmentsandhigherdemandinouradvantagedhealthandhygieneproductsastheresultofCOVID-19.13Costofgoodssold:Thecostofgoodssoldincreaseisattributedtoinflation,organicvolumegrowth,anincreasefromextrashippingdaysinfiscal2021,andanincreasefromforeigncurrencychanges.OperatingIncome:Theoperatingincomeincreaseisprimarilyattributedtoa$36millionincreasefromtheorganicvolumegrowth,a$48millionfavorableimpactfrompricecostspread,an$8millionbenefitfromextrashippingdaysinfiscal2021,andafavorableimpactfromforeigncurrencychanges.Otherexpense,netFiscalYear20212020$Change%ChangeOtherexpense,net....................................$51$31$2065%TheOtherexpenseincreaseisprimarilyattributedtoforeigncurrencychangesrelatedtotheremeasurementofnon-operatingintercompanybalances.Interestexpense,netFiscalYear20212020$Change%ChangeInterestexpense,net..................................$336$435$(99)(23)%Theinterestexpensedecreaseisprimarilytheresultofrepaymentsonlong-termborrowingsandrecentrefinancingactivities(seeNote3).IncometaxexpenseFiscalYear20212020$Change%ChangeIncometaxexpense...................................$172$154$1812%Theincometaxexpenseincreaseisprimarilyattributedtohigherpre-taxbookincome.Oureffectivetaxrateforfiscal2021was19%andwaspositivelyimpactedby3%frompermanentforeigncurrencydifferencesand2%fromchangeinforeignvaluationallowance.Thesefavorableitemswerepartiallyoffsetbyotherdiscreteitems.RefertoNote6.IncomeTaxesforfurtherinformation.ComprehensiveIncomeFiscalYear20212020$Change%ChangeComprehensiveIncome................................$988$394$594151%Theincreaseincomprehensiveincomeisprimarilyattributedtoa$174millionincreaseinnetincome,a$123millionfavorablechangeincurrencytranslation,a$188millionfavorablechangeinthefairvalueofinterestratehedgesanda$109millionfavorablechangefromunrealizedgainsontheCompany’spensionplans.Currencytranslationgainsareprimarilyrelatedtonon-U.S.subsidiarieswithafunctionalcurrencyotherthantheU.S.dollarwherebyassetsandliabilitiesaretranslatedfromtherespectivefunctionalcurrencyintoU.S.dollarsusingperiod-endexchangerates.Thechangeincurrencytranslationwasprimarilyattributedtolocationsutilizingtheeuro,Britishpoundsterling,BrazilianrealandChineserenminbiastheirfunctionalcurrency.Aspartoftheoverallriskmanagement,theCompanyusesderivativeinstrumentstoreduceexposuretochangesininterestratesattributedtotheCompany’sfloating-rateborrowingsandrecordschangestothefairvalueoftheseinstrumentsinAccumulatedothercomprehensiveincome(loss).Thechangeinfairvalueoftheseinstrumentsinfiscal2021versusfiscal2020isprimarilyattributedtoachangeintheforwardinterestcurvebetweenmeasurementdates.LiquidityandCapitalResourcesSeniorSecuredCreditFacilityWemanageourglobalcashrequirementsconsidering(i)availablefundsamongthemanysubsidiariesthroughwhichweconductourbusiness,(ii)thegeographiclocationofourliquidityneeds,and(iii)thecosttoaccessinternational14cashbalances.Wehavean$850millionasset-basedrevolvinglineofcreditthatmaturesinMay2024.Attheendoffiscal2021,theCompanyhadnooutstandingbalanceontherevolvingcreditfacility.TheCompanywasincompliancewithallcovenantsattheendoffiscal2021.RefertoNote3.Long-TermDebtforfurtherinformation.CashFlowsfromOperatingActivitiesNetcashprovidedbyoperatingactivitiesincreased$50millionfromfiscal2020primarilyattributedtoimprovednetincomepriortonon-cashactivities,partiallyoffsetbyworkingcapitalinflation.CashFlowsfromInvestingActivitiesNetcashusedininvestingactivitiesincreased$195millionfromfiscal2020primarilyattributedtoincreasedcapitalexpendituresandproceedsfromthesettlementofcross-currencyderivativesinfiscal2020,partiallyoffsetforthedivestitureofbusinessinfiscal2021.CashFlowsfromFinancingActivitiesNetcashusedinfinancingactivitiesdecreased$479millionfromfiscal2020primarilyattributedtolowernetrepaymentsonlong-termborrowings.ShareRepurchasesTheCompanydidnothaveanysharerepurchasesinfiscal2021or2020.FreeCashFlowWedefine“freecashflow”ascashflowfromoperatingactivitieslessnetadditionstoproperty,plantandequipment.Basedonourdefinition,ourconsolidatedfreecashflowissummarizedasfollows:FiscalyearsendedOctober2,2021September26,2020Cashflowfromoperatingactivities...............................$1,580$1,530Additionstoproperty,plantandequipment,net......................(676)(583)Freecashflow..............................................$904$947Weusefreecashflowasasupplementalmeasureofliquidityasitassistsusinassessingourabilitytofundgrowththroughgenerationofcash.Freecashflowmaybecalculateddifferentlybyothercompanies,includingothercompaniesinourindustryorpeergroup,limitingitsusefulness.Freecashflowisnotagenerallyacceptedaccountingprinciples(“GAAP’)financialmeasureandshouldnotbeconsideredasanalternativetoanyothermeasuredeterminedinaccordancewithGAAP.LiquidityOutlookAttheendoffiscal2021,ourcashbalancewas$1,091million,whichwasprimarilylocatedoutsidetheU.S.WebelieveourexistingandfutureU.S.basedcashandcashflowfromU.S.operations,togetherwithavailableborrowingsunderourseniorsecuredcreditfacilities,willbeadequatetomeetourshort-termandlong-termliquidityneedswiththeexceptionoffundsneededtocoveralllong-termdebtobligationswhichweintendtorefinancepriortomaturity.TheCompanyhastheabilitytorepatriatethecashlocatedoutsidetheU.S.totheextentnotneededtomeetoperationalandcapitalneedswithoutsignificantrestrictions.Ourunremittedforeignearningswere$1.1billionattheendoffiscal2021.Thecomputationofthedeferredtaxliabilityassociatedwithunremittedearningsisnotpracticable.SummarizedGuarantorFinancialInformationBerryGlobal,Inc.(“Issuer”)hasnotesoutstandingwhicharefully,jointly,severally,andunconditionallyguaranteedbyitsparent,BerryGlobalGroup,Inc.(forpurposesofthissection,“Parent”)andsubstantiallyallofIssuer’sdomesticsubsidiaries.Separatenarrativeinformationorfinancialstatementsoftheguarantorsubsidiarieshavenotbeenincludedbecausetheyare100%ownedbyParentandtheguarantorsubsidiariesunconditionallyguaranteesuchdebtonajointandseveralbasis.Aguaranteeofaguarantorsubsidiaryofthesecuritieswillterminateuponthe15followingcustomarycircumstances:thesaleofthecapitalstockofsuchguarantorifsuchsalecomplieswiththeindentures,thedesignationofsuchguarantorasanunrestrictedsubsidiary,thedefeasanceordischargeoftheindentureorinthecaseofarestrictedsubsidiarythatisrequiredtoguaranteeaftertherelevantissuancedate,ifsuchguarantornolongerguaranteescertainotherindebtednessoftheissuer.TheguaranteesoftheguarantorsubsidiariesarealsolimitedasnecessarytopreventthemfromconstitutingafraudulentconveyanceunderapplicablelawandanyguaranteesguaranteeingsubordinateddebtaresubordinatedtocertainotheroftheCompany’sdebts.ParentalsoguaranteestheIssuer’stermloansandrevolvingcreditfacilities.Theguarantorsubsidiariesguaranteeourtermloansandareco-borrowersunderourrevolvingcreditfacility.PresentedbelowissummarizedfinancialinformationfortheParent,Issuerandguarantorsubsidiariesonacombinedbasis,afterintercompanytransactionshavebeeneliminated.YearEndedOctober2,2021Netsales..........................................................$7,070Grossprofit.......................................................1,503Earningsfromcontinuingoperations......................................318Netincome........................................................$318Includes$15millionofincomeassociatedwithintercompanyactivitywithnon-guarantorsubsidiaries.October2,2021September26,2020AssetsCurrentassets......................................$2,293$1,417Noncurrentassets...................................5,9796,153LiabilitiesCurrentliabilities....................................$1,533$841Intercompanypayable.................................629572Noncurrentliabilities.................................11,08311,936CriticalAccountingPoliciesandEstimatesWedisclosethoseaccountingpoliciesthatweconsidertobesignificantindeterminingtheamountstobeutilizedforcommunicatingourconsolidatedfinancialposition,resultsofoperationsandcashflowsinthefirstnotetoourconsolidatedfinancialstatementsincludedelsewhereherein.Ourdiscussionandanalysisofourfinancialconditionandresultsofoperationsarebasedonourconsolidatedfinancialstatements,whichhavebeenpreparedinaccordancewithGAAP.Thepreparationoffinancialstatementsinconformitywiththeseprinciplesrequiresmanagementtomakeestimatesandassumptionsthataffectamountsreportedinthefinancialstatementsandaccompanyingnotes.Actualresultsmaydifferfromtheseestimatesunderdifferentassumptionsorconditions.Pensions.Theaccountingforourpensionplansrequiresustorecognizetheoverfundedorunderfundedstatusofthepensionplansonourbalancesheet.Forthesesponsoredplans,therelevantaccountingguidancerequiresthatmanagementmakecertainassumptionsrelatingtothelong-termrateofreturnonplanassets,discountratesusedtodeterminethepresentvalueoffutureobligationsandexpenses,salaryinflationrates,mortalityratesandotherassumptions.Webelievethattheaccountingestimatesrelatedtoourpensionplansarecriticalaccountingestimatesbecausetheyarehighlysusceptibletochangefromperiodtoperiodbasedontheperformanceofplanassets,actuarialvaluations,marketconditionsandcontractedbenefitchanges.Theselectionofassumptionsisbasedonhistoricaltrendsandknowneconomicandmarketconditionsatthetimeofvaluation,aswellasindependentstudiesoftrendsperformedbyouractuaries.Wereviewannuallythediscountrateusedtocalculatethepresentvalueofpensionplanliabilities.Thediscountrateusedateachmeasurementdateissetbasedonahigh-qualitycorporatebondyieldcurve,derivedbasedonbonduniverseinformationsourcedfromreputablethird-partyindices,dataproviders,andratingagencies.Incountrieswherethereisnodeepmarketincorporatebonds,wehaveusedagovernmentbondapproachtosetthediscountrate.16Additionally,theexpectedlongtermrateofreturnonplanassetsisderivedforeachbenefitplanbyconsideringtheexpectedfuturelong-termreturnassumptionforeachindividualassetclass.Asinglelong-termreturnassumptionisthenderivedforeachplanbasedupontheplan’stargetassetallocation.RefertoNote7.RetirementPlansforfurtherinformation.DeferredTaxesandEffectiveTaxRates.Weestimatetheeffectivetaxrate(“ETR”)andassociatedliabilitiesorassetsforeachofourlegalentitiesinaccordancewithauthoritativeguidance.Weutilizetaxplanningtominimizeordefertaxliabilitiestofutureperiods.InrecordingETRsandrelatedliabilitiesandassets,werelyuponestimates,whicharebaseduponourinterpretationofU.S.andlocaltaxlawsastheyapplytoourlegalentitiesandouroveralltaxstructure.Auditsbylocaltaxjurisdictions,includingtheU.S.Government,couldyielddifferentinterpretationsfromourownandcausetheCompanytoowemoretaxesthanoriginallyrecorded.AspartoftheETR,ifwedeterminethatadeferredtaxassetarisingfromtemporarydifferencesisnotlikelytobeutilized,wewillestablishavaluationallowanceagainstthatassettorecorditatitsexpectedrealizablevalue.Inmultipleforeignjurisdictions,theCompanybelievesthatitwillnotgeneratesufficientfuturetaxableincometorealizetherelatedtaxbenefits.TheCompanyhasprovidedafullvaluationallowanceagainstitsforeignnetoperatinglossesincludedwithinthedeferredtaxassetsinmultipleforeignjurisdictions.TheCompanyhasnotprovidedavaluationallowanceonitsfederalnetoperatinglossesintheU.S.becauseithasdeterminedthatfuturereversalsofitstemporarytaxabledifferenceswilloccurinthesameperiodsandareofthesamenatureasthetemporarydifferencesgivingrisetothedeferredtaxassets.RefertoNote6.IncomeTaxesforfurtherinformation.Item7A.QUANTITATIVEANDQUALITATIVEDISCLOSURESABOUTMARKETRISKInterestRateRiskWeareexposedtomarketriskfromchangesininterestratesprimarilythroughourseniorsecuredcreditfacilities.AsofOctober2,2021,ourseniorsecuredcreditfacilitiesarecomprisedof(i)$3.4billiontermloansand(ii)an$850millionrevolvingcreditfacilitywithnoborrowingsoutstanding.BorrowingsunderourseniorsecuredcreditfacilitiesbearinterestatarateequaltoanapplicablemarginplusLIBOR.TheapplicablemarginforLIBORrateborrowingsundertherevolvingcreditfacilityrangesfrom1.25%to1.50%,andthemarginforthetermloansis1.75%perannum.AsofOctober2,2021,theLIBORrateofapproximately0.08%wasapplicabletothetermloans.A0.25%changeinLIBORwouldincreaseourannualinterestexpenseby$3milliononvariableratetermloans.Weseektominimizeinterestratevolatilityriskthroughregularoperatingandfinancingactivitiesand,whendeemedappropriate,throughtheuseofderivativefinancialinstruments.Thesefinancialinstrumentsarenotusedfortradingorotherspeculativepurposes.AsofOctober2,2021,theCompanyeffectivelyhad(i)a$450millioninterestrateswaptransactionthatswapsaone-monthvariableLIBORcontractforafixedannualrateof1.398%,withanexpirationinJune2026,(ii)a$400millioninterestrateswaptransactionthatswapsaone-monthvariableLIBORcontractforafixedannualrateof1.916%withanexpirationinJune2026,(iii)an$884millioninterestrateswaptransactionthatswapsaonemonthvariableLIBORcontractforafixedannualrateof1.857%,withanexpirationinJune2024,and(iv)a$473millioninterestrateswaptransactionthatswapsaonemonthvariableLIBORcontractforafixedannualrateof2.050%,withanexpirationinJune2024.ForeignCurrencyRiskAsaglobalcompany,wefaceforeigncurrencyriskexposurefromfluctuatingcurrencyexchangerates,primarilytheU.S.dollaragainsttheeuro,Britishpoundsterling,Brazilianreal,Chineserenminbi,CanadiandollarandMexicanpeso.Significantfluctuationsincurrencyratescanhaveasubstantialimpact,eitherpositiveornegative,onourrevenue,costofsales,andoperatingexpenses.Currencytranslationgainsandlossesareprimarilyrelatedtonon-U.S.subsidiarieswithafunctionalcurrencyotherthanU.S.dollarswherebyassetsandliabilitiesaretranslatedfromtherespectivefunctionalcurrencyintoU.S.dollarsusingperiod-endexchangeratesandimpactourComprehensiveincome.A10%declineinforeigncurrencyexchangerateswouldhavehada$44millionunfavorableimpactonfiscal2021Netincome.TheCompanyispartytocertaincross-currencyswapstohedgeaportionofourforeigncurrencyrisk.TheswapagreementsmatureMay2022(€250million)andJune2024(€1,625million)andJuly2027(£700million).Inadditiontothecross-currencyswaps,wehedgeaportionofourforeigncurrencyriskbydesignatingforeigncurrencydenominatedlong-termdebtasnetinvestmenthedgesofcertainforeignoperations.AsofOctober2,2021,wehadoutstandinglong-termdebtof€785millionthatwasdesignatedasahedgeofournetinvestmentincertaineuro-denominatedforeignsubsidiaries.17Item8.FINANCIALSTATEMENTSANDSUPPLEMENTARYDATAIndextoFinancialStatementsPageReportsofIndependentRegisteredPublicAccountingFirm..................................21ConsolidatedStatementsofIncomeandComprehensiveIncomeforfiscal2021,2020and2019..........24ConsolidatedBalanceSheetsasoffiscal2021and2020......................................25ConsolidatedStatementsofChangesinStockholders’Equityforfiscal2021,2020and2019............26ConsolidatedStatementsofCashFlowsforfiscal2021,2020and2019...........................27NotestoConsolidatedFinancialStatements.............................................28IndextoFinancialStatementSchedulesAllscheduleshavebeenomittedbecausetheyarenotapplicableornotrequiredorbecausetherequiredinformationisincludedintheconsolidatedfinancialstatementsornotesthereto.Item9.CHANGESINANDDISAGREEMENTSWITHACCOUNTANTSONACCOUNTINGANDFINANCIALDISCLOSURENone.Item9A.CONTROLSANDPROCEDURESEvaluationofdisclosurecontrolsandproceduresWemaintain“disclosurecontrolsandprocedures,”assuchtermisdefinedinRule13a-15(e)undertheExchangeAct,thataredesignedtoensurethatinformationrequiredtobedisclosedbyusinreportsthatwefileorsubmitundertheExchangeActisrecorded,processed,summarizedandreportedwithinthetimeperiodsspecifiedinSECrulesandforms,andthatsuchinformationisaccumulatedandcommunicatedtoourmanagement,includingourChiefExecutiveOfficerandChiefFinancialOfficer,asappropriate,toallowtimelydecisionsregardingrequireddisclosure.InconnectionwiththepreparationofthisForm10-K,managementevaluatedtheeffectivenessofthedesignandoperationofourdisclosurecontrolsandproceduresasofOctober2,2021.Basedonthisevaluation,ourChiefExecutiveOfficerandChiefFinancialOfficerhaveconcludedthattheCompany’sdisclosurecontrolsandprocedureswereeffectiveasofOctober2,2021.Management’sReportonInternalControlsoverFinancialReportingManagementisresponsibleforestablishingandmaintainingadequateinternalcontroloverfinancialreporting.Underthesupervisionandwiththeparticipationofourmanagement,theCompanyconductedanevaluationoftheeffectivenessofourinternalcontroloverfinancialreportingusingthecriteriasetforthbytheCommitteeofSponsoringOrganizationsoftheTreadwayCommission(2013framework).Basedonthisevaluation,ourChiefExecutiveOfficerandChiefFinancialOfficerhaveconcludedthattheCompany’sinternalcontrolsoverfinancialreportingwereeffectiveasofOctober2,2021.TheeffectivenessofourinternalcontroloverfinancialreportingasofOctober2,2021,hasbeenauditedbytheCompany’sindependentregisteredpublicaccountingfirm,asstatedintheirreport,whichisincludedherein.ChangesinInternalControlsoverFinancialReportingTherewerenochangesinourinternalcontroloverfinancialreportingthatoccurredduringthequarterendedOctober2,2021thathavemateriallyaffected,orarereasonablylikelytomateriallyaffect,ourinternalcontroloverfinancialreporting.Item9B.OTHERINFORMATIONNone.Item9C.DISCLOSUREREGARDINGFOREIGNJURISDICTIONSTHATPREVENTINSPECTIONSNone.18PARTIIIItem10.DIRECTORS,EXECUTIVEOFFICERSANDCORPORATEGOVERNANCEExceptassetforthbelow,theinformationrequiredbythisItemisincorporatedhereinbyreferencetoourdefinitiveProxyStatementtobefiledinconnectionwiththe2022AnnualMeetingofStockholders.WehaveaGlobalCodeofBusinessEthicsthatappliestoalldirectorsandemployees,includingourChiefExecutiveOfficerandseniorfinancialofficers.WealsohaveadoptedaSupplementalCodeofEthics,whichisinadditiontothestandardssetbyourGlobalCodeofBusinessEthics,inordertoestablishahigherlevelofexpectationforthemostseniorleadersoftheCompany.OurGlobalCodeofBusinessEthicsandSupplementalCodeofEthicscanbeobtained,freeofcharge,bycontactingourcorporateheadquartersorcanbeobtainedfromtheCorporateGovernancesectionoftheInvestorspageontheCompany’sinternetsite.Intheeventthatwemakechangesin,orprovidewaiversfrom,theprovisionoftheCodeofBusinessEthicsthattheSECrequiresustodisclose,wewilldisclosetheseeventsinthecorporategovernancesectionofourwebsitewithinfourbusinessdaysfollowingthedateofsuchamendmentorwaiver.Item11.EXECUTIVECOMPENSATIONTheinformationrequiredbythisItemisincorporatedhereinbyreferencetoourdefinitiveProxyStatementtobefiledinconnectionwiththe2022AnnualMeetingofStockholders.Item12.SECURITYOWNERSHIPOFCERTAINBENEFICIALOWNERSANDMANAGEMENTANDRELATEDSTOCKHOLDERMATTERSTheinformationrequiredbythisItem,isincorporatedhereinbyreferencetoourdefinitiveProxyStatementtobefiledinconnectionwiththe2022AnnualMeetingofStockholders.Item13.CERTAINRELATIONSHIPSANDRELATEDTRANSACTIONSANDDIRECTORINDEPENDENCETheinformationrequiredbythisItemisincorporatedhereinbyreferencetoourdefinitiveProxyStatementtobefiledinconnectionwiththe2022AnnualMeetingofStockholders.Item14.PRINCIPALACCOUNTANTFEESANDSERVICESTheinformationrequiredbythisItemisincorporatedhereinbyreferencetoourdefinitiveProxyStatementtobefiledinconnectionwiththe2022AnnualMeetingofStockholders.19PARTIVItem15.EXHIBITSANDFINANCIALSTATEMENTSCHEDULES1.FinancialStatementsThefinancialstatementslistedunderItem8arefiledaspartofthisreport.2.FinancialStatementSchedulesScheduleshavebeenomittedbecausetheyareeithernotapplicableortherequiredinformationhasbeendisclosedinthefinancialstatementsornotesthereto.3.ExhibitsTheexhibitslistedontheExhibitIndeximmediatelyfollowingthesignaturepageofthisannualreportarefiledaspartofthisreport.Item16.FORM10-KSUMMARYNone.20ReportofIndependentRegisteredPublicAccountingFirmTotheStockholdersandtheBoardofDirectorsofBerryGlobalGroup,Inc.OpinionontheFinancialStatementsWehaveauditedtheaccompanyingconsolidatedbalancesheetsofBerryGlobalGroup,Inc.(theCompany)asofOctober2,2021andSeptember26,2020,therelatedconsolidatedstatementsofincome,comprehensiveincome,changesinstockholders’equityandcashflowsforeachofthethreeyearsintheperiodendedOctober2,2021,andtherelatednotes(collectivelyreferredtoasthe“consolidatedfinancialstatements”).Inouropinion,theconsolidatedfinancialstatementspresentfairly,inallmaterialrespects,thefinancialpositionoftheCompanyatOctober2,2021andSeptember26,2020,andtheresultsofitsoperationsanditscashflowsforeachofthethreeyearsintheperiodendedOctober2,2021,inconformitywithU.S.generallyacceptedaccountingprinciples.Wealsohaveaudited,inaccordancewiththestandardsofthePublicCompanyAccountingOversightBoard(UnitedStates)(PCAOB),theCompany’sinternalcontroloverfinancialreportingasofOctober2,2021,basedoncriteriaestablishedinInternalControlIntegratedFrameworkissuedbytheCommitteeofSponsoringOrganizationsoftheTreadwayCommission(2013framework)andourreportdatedNovember18,2021expressedanunqualifiedopinionthereon.BasisforOpinionThesefinancialstatementsaretheresponsibilityoftheCompany’smanagement.OurresponsibilityistoexpressanopinionontheCompany’sfinancialstatementsbasedonouraudits.WeareapublicaccountingfirmregisteredwiththePCAOBandarerequiredtobeindependentwithrespecttotheCompanyinaccordancewiththeU.S.federalsecuritieslawsandtheapplicablerulesandregulationsoftheSecuritiesandExchangeCommissionandthePCAOB.WeconductedourauditsinaccordancewiththestandardsofthePCAOB.Thosestandardsrequirethatweplanandperformtheaudittoobtainreasonableassuranceaboutwhetherthefinancialstatementsarefreeofmaterialmisstatement,whetherduetoerrororfraud.Ourauditsincludedperformingprocedurestoassesstherisksofmaterialmisstatementofthefinancialstatements,whetherduetoerrororfraud,andperformingproceduresthatrespondtothoserisks.Suchproceduresincludedexamining,onatestbasis,evidenceregardingtheamountsanddisclosuresinthefinancialstatements.Ourauditsalsoincludedevaluatingtheaccountingprinciplesusedandsignificantestimatesmadebymanagement,aswellasevaluatingtheoverallpresentationofthefinancialstatements.Webelievethatourauditsprovideareasonablebasisforouropinion.CriticalAuditMattersThecriticalauditmatterscommunicatedbelowaremattersarisingfromthecurrentperiodauditofthefinancialstatementsthatwerecommunicatedorrequiredtobecommunicatedtotheauditcommitteeandthat:(1)relatetoaccountsordisclosuresthatarematerialtothefinancialstatementsand(2)involvedourespeciallychallenging,subjectiveorcomplexjudgments.Thecommunicationofcriticalauditmattersdoesnotalterinanywayouropinionontheconsolidatedfinancialstatements,takenasawhole,andwearenot,bycommunicatingthecriticalauditmattersbelow,providingseparateopinionsonthecriticalauditmattersorontheaccountsordisclosurestowhichtheyrelate.UnitedKingdomDefinedBenefitPensionObligationDescriptionoftheMatterAtOctober2,2021theaggregateUnitedKingdom(UK)definedbenefitpensionobligationwas$888millionandexceededthefairvalueofpensionplanassetsof$828million,resultinginanunderfundeddefinedbenefitpensionobligationof$60million.AsdisclosedinNotes1and8totheconsolidatedfinancialstatements,theCompanyrecognizestheoverfundedorunderfundedstatusofitspensionplansintheconsolidatedbalancesheet.Theobligationsfortheseplansareactuariallydeterminedandaffectedbyassumptions,includingdiscountratesandmortalityrates.AuditingtheUKdefinedbenefitpensionobligationiscomplexandrequiredtheinvolvementofouractuarialspecialistsduetothehighlyjudgmentalnatureofactuarialassumptions(e.g.,discountratesandmortalityrates)usedinthemeasurementprocess.Theseassumptionshaveasignificanteffectontheprojectedbenefitobligation.21HowWeAddressedtheMatterinOurAuditWeobtainedanunderstanding,evaluatedthedesignandtestedtheoperatingeffectivenessofcontrolsthataddressthemeasurementandvaluationoftheUKdefinedbenefitpensionobligation.Thisincludedmanagement’sreviewoftheUKdefinedbenefitpensionobligationcalculationsandthesignificantactuarialassumptionsusedbymanagement.TotesttheUKdefinedbenefitpensionobligation,weperformedauditproceduresthatincluded,amongothers,evaluatingthemethodologyusedandthesignificantactuarialassumptionsdescribedaboveandtestingthecompletenessandaccuracyoftheunderlyingdata,includingtheparticipantdatausedbymanagement.Weinvolvedouractuarialspecialiststoassistwithourauditprocedures.Wecomparedtheactuarialassumptionsusedbymanagementtohistoricaltrendsandevaluatedthechangeinthedefinedbenefitpensionobligationfromprioryearduetothechangeinservicecost,interestcost,actuarialgainsandlosses,benefitpayments,contributionsandotheractivities.Inaddition,weevaluatedmanagement’smethodologyfordeterminingthediscountratethatreflectsthematurityanddurationofthebenefitpaymentsandisusedtomeasurethedefinedbenefitpensionobligation.Aspartofthisassessment,wecomparedmanagement’sselecteddiscountratetoanindependentlydevelopedrangeofreasonablediscountrates.Toevaluatethemortalityrateassumption,weassessedwhethertheinformationisconsistentwithpubliclyavailableinformation,andwhetheranymarketdataadjustedforentity-specificfactorswereapplied./s/Ernst&YoungLLPWehaveservedastheCompany’sauditorsince1991.Indianapolis,IndianaNovember18,202122ReportofIndependentRegisteredPublicAccountingFirmTotheStockholdersandtheBoardofDirectorsofBerryGlobalGroup,Inc.OpiniononInternalControloverFinancialReportingWehaveauditedBerryGlobalGroup,Inc.’sinternalcontroloverfinancialreportingasofOctober2,2021,basedoncriteriaestablishedinInternalControl—IntegratedFrameworkissuedbytheCommitteeofSponsoringOrganizationsoftheTreadwayCommission(2013framework)(theCOSOcriteria).Inouropinion,BerryGlobalGroup,Inc.(theCompany)maintained,inallmaterialrespects,effectiveinternalcontroloverfinancialreportingasofOctober2,2021,basedontheCOSOcriteria.Wealsohaveaudited,inaccordancewiththestandardsofthePublicCompanyAccountingOversightBoard(UnitedStates)(PCAOB),theconsolidatedbalancesheetsoftheCompanyasofOctober2,2021andSeptember26,2020,therelatedconsolidatedstatementsofincome,comprehensiveincome,changesinstockholders’equityandcashflowsforeachofthethreeyearsintheperiodendedOctober2,2021,andtherelatednotesandourreportdatedNovember18,2021expressedanunqualifiedopinionthereon.BasisforOpinionTheCompany’smanagementisresponsibleformaintainingeffectiveinternalcontroloverfinancialreportingandforitsassessmentoftheeffectivenessofinternalcontroloverfinancialreportingincludedintheaccompanyingManagement’sReportonInternalControlOverFinancialReporting.OurresponsibilityistoexpressanopinionontheCompany’sinternalcontroloverfinancialreportingbasedonouraudit.WeareapublicaccountingfirmregisteredwiththePCAOBandarerequiredtobeindependentwithrespecttotheCompanyinaccordancewiththeU.S.federalsecuritieslawsandtheapplicablerulesandregulationsoftheSecuritiesandExchangeCommissionandthePCAOB.WeconductedourauditinaccordancewiththestandardsofthePCAOB.Thosestandardsrequirethatweplanandperformtheaudittoobtainreasonableassuranceaboutwhethereffectiveinternalcontroloverfinancialreportingwasmaintainedinallmaterialrespects.Ourauditincludedobtaininganunderstandingofinternalcontroloverfinancialreporting,assessingtheriskthatamaterialweaknessexists,testingandevaluatingthedesignandoperatingeffectivenessofinternalcontrolbasedontheassessedrisk,andperformingsuchotherproceduresasweconsiderednecessaryinthecircumstances.Webelievethatourauditprovidesareasonablebasisforouropinion.DefinitionandLimitationsofInternalControlOverFinancialReportingAcompany’sinternalcontroloverfinancialreportingisaprocessdesignedtoprovidereasonableassuranceregardingthereliabilityoffinancialreportingandthepreparationoffinancialstatementsforexternalpurposesinaccordancewithgenerallyacceptedaccountingprinciples.Acompany’sinternalcontroloverfinancialreportingincludesthosepoliciesandproceduresthat(1)pertaintothemaintenanceofrecordsthat,inreasonabledetail,accuratelyandfairlyreflectthetransactionsanddispositionsoftheassetsofthecompany;(2)providereasonableassurancethattransactionsarerecordedasnecessarytopermitpreparationoffinancialstatementsinaccordancewithgenerallyacceptedaccountingprinciples,andthatreceiptsandexpendituresofthecompanyarebeingmadeonlyinaccordancewithauthorizationsofmanagementanddirectorsofthecompany;and(3)providereasonableassuranceregardingpreventionortimelydetectionofunauthorizedacquisition,use,ordispositionofthecompany’sassetsthatcouldhaveamaterialeffectonthefinancialstatements.Becauseofitsinherentlimitations,internalcontroloverfinancialreportingmaynotpreventordetectmisstatements.Also,projectionsofanyevaluationofeffectivenesstofutureperiodsaresubjecttotheriskthatcontrolsmaybecomeinadequatebecauseofchangesinconditions,orthatthedegreeofcompliancewiththepoliciesorproceduresmaydeteriorate./s/Ernst&YoungLLPIndianapolis,IndianaNovember18,202123BerryGlobalGroup,Inc.ConsolidatedStatementsofIncome(inmillionsofdollars)FiscalyearsendedOctober2,2021September26,2020September28,2019Netsales............................................$13,850$11,709$8,878Costsandexpenses:Costofgoodssold...................................11,3529,3017,259Selling,generalandadministrative.........................867850583Amortizationofintangibles.............................288300194Restructuringandtransactionactivities.....................5179(132)Operatingincome......................................1,2921,179974Otherexpense........................................5131155Interestexpense.......................................336435329Incomebeforeincometaxes...............................905713490Incometaxexpense.....................................17215486Netincome..........................................$733$559$404Netincomepershare(refertoNote11):Basic.............................................$5.45$4.22$3.08Diluted...........................................$5.30$4.14$3.00BerryGlobalGroup,Inc.ConsolidatedStatementsofComprehensiveIncome(inmillionsofdollars)FiscalyearsendedOctober2,2021September26,2020September28,2019Netincome..........................................$733$559$404Currencytranslation..................................1241(104)Pensionandpostretirementbenefits.......................49(60)(43)Derivativeinstruments.................................82(106)(83)Othercomprehensiveincome(loss)..........................255(165)(230)Comprehensiveincome..................................$988$394$174Seenotestoconsolidatedfinancialstatements.24BerryGlobalGroup,Inc.ConsolidatedBalanceSheets(inmillionsofdollars)October2,2021September26,2020AssetsCurrentassets:Cashandcashequivalents..........................................$1,091$750Accountsreceivable...............................................1,8791,469Inventories.....................................................1,9071,268Prepaidexpensesandothercurrentassets...............................217330Totalcurrentassets.................................................5,0943,817Property,plantandequipment.........................................4,6774,561Goodwillandintangibleassets.........................................7,4347,670Right-of-useassets.................................................562562Otherassets......................................................11591Totalassets......................................................$17,882$16,701LiabilitiesandStockholders’EquityCurrentliabilities:Accountspayable................................................$2,041$1,115Accruedemployeecosts............................................336324Othercurrentliabilities............................................788669Currentportionoflong-termdebt....................................2175Totalcurrentliabilities..............................................3,1862,183Long-termdebt...................................................9,43910,162Deferredincometaxes...............................................568601Employeebenefitobligations..........................................276368Operatingleaseliabilities.............................................466464Otherlong-termliabilities............................................767831Totalliabilities....................................................14,70214,609Stockholders’equity:Commonstock(135.5and133.6sharesissued,respectively)...................11Additionalpaid-incapital...........................................1,1341,034Retainedearnings................................................2,3411,608Accumulatedothercomprehensiveloss.................................(296)(551)Totalstockholders’equity............................................3,1802,092Totalliabilitiesandstockholders’equity..................................$17,882$16,701Seenotestoconsolidatedfinancialstatements.25BerryGlobalGroup,Inc.ConsolidatedStatementsofChangesinStockholders’Equity(inmillionsofdollars)CommonStockAdditionalPaid-inCapitalAccumulatedOtherComprehensiveLossRetainedEarningsTotalBalanceatSeptember29,2018.................$1$870$(156)$719$1,434Netincome...............................———404404Othercomprehensiveloss.....................——(230)—(230)Share-basedcompensation....................—27——27Proceedsfromissuanceofcommonstock..........—55——55Commonstockrepurchasedandretired...........—(3)—(69)(72)BalanceatSeptember28,2019.................$1$949$(386)$1,054$1,618Netincome...............................———559559Othercomprehensiveloss.....................——(165)—(165)Share-basedcompensation....................—33——33Proceedsfromissuanceofcommonstock..........—30——30Acquisition(a).............................—22——22AdoptionofASC842.......................———(5)(5)BalanceatSeptember26,2020.................$1$1,034$(551)$1,608$2,092Netincome...............................———733733Othercomprehensiveincome..................——255—255Share-basedcompensation....................—40——40Proceedsfromissuanceofcommonstock..........—60——60BalanceatOctober2,2021....................$1$1,134$(296)$2,341$3,180(a)RepresentsnoncontrollinginterestSeenotestoconsolidatedfinancialstatements.26BerryGlobalGroup,Inc.ConsolidatedStatementsofCashFlows(inmillionsofdollars)FiscalyearsendedOctober2,2021September26,2020September28,2019CashFlowsfromOperatingActivities:Netincome........................................$733$559$404Adjustmentstoreconcilenetcashfromoperatingactivities:Depreciation......................................566545419Amortizationofintangibles...........................288300194Non-cashinterestexpense............................32271Share-basedcompensationexpense......................403327Deferredincometax................................(73)(96)(52)Settlementofderivatives.............................—1119Transactionactivities................................——(38)Othernon-cashoperatingactivities,net...................4942(1)Changesinoperatingassetsandliabilities:Accountsreceivable...............................(331)49150Inventories.....................................(639)4899Prepaidexpensesandotherassets.....................(30)(12)14Accountspayableandotherliabilities...................94524(35)Netcashfromoperatingactivities.........................1,5801,5301,201CashFlowsfromInvestingActivities:Additionstoproperty,plantandequipment,net...............(676)(583)(399)Divestitureofbusinesses...............................165—326Acquisitionofbusinessandpurchasepricederivatives..........—(14)(6,178)Settlementofnetinvestmenthedges.......................—281—Netcashfrominvestingactivities.........................(511)(316)(6,251)CashFlowsfromFinancingActivities:Proceedsfromlong-termborrowings.......................2,7161,2026,784Repaymentoflong-termborrowings.......................(3,496)(2,436)(1,214)Proceedsfromissuanceofcommonstock...................603055Repurchaseofcommonstock...........................——(74)Paymentoftaxreceivableagreement.......................——(38)Debtfinancingcosts..................................(21)(16)(87)Netcashfromfinancingactivities.........................(741)(1,220)5,426Effectofcurrencytranslationoncash......................136(7)Netchangeincashandcashequivalents....................341—369Cashandcashequivalentsatbeginningofperiod..............750750381Cashandcashequivalentsatendofperiod..................$1,091$750$750Seenotestoconsolidatedfinancialstatements.27BerryGlobalGroup,Inc.NotestoConsolidatedFinancialStatements(inmillionsofdollars,exceptasotherwisenoted)1.BasisofPresentationandSummaryofSignificantAccountingPoliciesBasisofPresentationBerryGlobalGroup,Inc.’s(“Berry,”“we,”orthe“Company”)consolidatedfinancialstatementshavebeenpreparedinaccordancewithaccountingprinciplesgenerallyacceptedintheU.S.(“GAAP”)pursuanttotherulesandregulationsoftheSecuritiesandExchangeCommissions.PeriodspresentedinthesefinancialstatementsincludefiscalperiodsendingOctober2,2021(“fiscal2021”),September26,2020(“fiscal2020”),andSeptember28,2019(“fiscal2019”).TheCompany’sU.S.basedresultsforfiscal2021arebasedonafifty-threeweekperiod.Fiscal2020andfiscal2019werefifty-twoweekperiods.InOctober2020,theCompanyreorganizedportionsofitsfouroperatingsegmentsinordertobetteralignourvariousbusinessesforfuturegrowth.TheCompanyhasrecastallpriorperiodamountstoconformtothisnewreportingstructure.TheCompanyhasevaluatedsubsequenteventsthroughthedatethefinancialstatementswereissued.TheconsolidatedfinancialstatementsincludetheaccountsofBerryanditssubsidiaries,allofwhichincludesourwhollyownedandmajorityownedsubsidiaries.TheCompanyhascertainforeignsubsidiariesthatreportonacalendarperiodbasiswhichweconsolidateintoourrespectivefiscalperiod.Intercompanyaccountsandtransactionshavebeeneliminatedinconsolidation.RevenueRecognitionandAccountsReceivableOurrevenuesareprimarilyderivedfromthesaleofnon-woven,flexibleandrigidproductstocustomers.Revenueisrecognizedwhenperformanceobligationsaresatisfied,inanamountreflectingtheconsiderationtowhichtheCompanyexpectstobeentitled.Weconsiderthepromisetotransferproductstobeoursoleperformanceobligation.Iftheconsiderationagreedtoinacontractincludesavariableamount,weestimatetheamountofconsiderationweexpecttobeentitledtoinexchangefortransferringthepromisedgoodstothecustomerusingthemostlikelyamountmethod.Ourmainsourcesofvariableconsiderationarecustomerrebates.Therearenomaterialinstanceswherevariableconsiderationisconstrainedandnotrecordedattheinitialtimeofsale.Generally,ourrevenueisrecognizedatapointintimeforstandardpromisedgoodsatthetimeofshipment,whentitleandriskoflosspasstothecustomer.Theaccrualforcustomerrebateswas$104millionand$104millionatOctober2,2021andSeptember26,2020,respectively,andisincludedinOthercurrentliabilitiesontheConsolidatedBalanceSheets.TheCompanydisaggregatesrevenuebasedonreportablebusinesssegment,geography,andsignificantproductline.RefertoNote10.SegmentandGeographicDataforfurtherinformation.Accountsreceivablearepresentednetofallowanceforcreditlossesof$21millionand$25millionatOctober2,2021andSeptember26,2020,respectively.TheCompanyrecordsitscurrentexpectedcreditlossesbasedonavarietyoffactorsincludinghistoricallossexperienceandcurrentcustomerfinancialcondition.Thechangestoourcurrentexpectedcreditlosses,write-offactivity,andrecoverieswerenotmaterialforanyoftheperiodspresented.TheCompanyhasenteredintovariousfactoringagreements,includingcustomer-basedsupplychainfinancingprograms,tosellcertainreceivablestothird-partyfinancialinstitutions.Agreementswhichresultintruesalesofthetransferredreceivables,whichoccurwhenreceivablesaretransferredwithoutrecoursetotheCompany,arereflectedasareductionoftradereceivables,netontheconsolidatedbalancesheetsandtheproceedsareincludedinthecashflowsfromoperatingactivitiesintheconsolidatedstatementsofcashflows.Thefeesassociatedwithtransferofreceivablesforallprogramswerenotmaterialforanyoftheperiodspresented.ResearchandDevelopmentResearchanddevelopmentcostsareexpensedwhenincurred.TheCompanyincurredresearchanddevelopmentexpendituresof$90million,$79million,and$50millioninfiscal2021,2020,and2019,respectively.Share-BasedCompensationTheCompanyutilizestheBlack-Scholesoptionvaluationmodelforestimatingthefairvalueofstockoptionsandamortizestheestimatedfairvalueonastraight-linebasisovertherequisiteserviceperiod.Theshare-basedcompensationplanismorefullydescribedinNote9.Stockholders’Equity.28ForeignCurrencyForthenon-U.S.subsidiariesthataccountinafunctionalcurrencyotherthanU.S.dollars,assetsandliabilitiesaretranslatedintoU.S.dollarsusingperiod-endexchangerates.Salesandexpensesaretranslatedattheaverageexchangeratesineffectduringtheperiod.ForeigncurrencytranslationgainsandlossesareincludedasacomponentofAccumulatedothercomprehensiveincome(loss)withinStockholders’equity.GainsandlossesresultingfromforeigncurrencytransactionsareincludedintheConsolidatedStatementsofIncome.CashandCashEquivalentsAllhighlyliquidinvestmentspurchasedwithamaturityofthreemonthsorlessfromthetimeofpurchaseareconsideredtobecashequivalents.InventoriesInventoriesarestatedatthelowerofcostornetrealizablevalueandarevaluedusingthefirst-in,first-outmethod.Managementperiodicallyreviewsinventorybalances,usingrecentandfutureexpectedsalestoidentifyslow-movingand/orobsoleteitems.Thecostofsparepartsischargedtocostofgoodssoldwhenpurchased.Weevaluateourreserveforinventoryobsolescenceonaquarterlybasisandreviewinventoryon-handtodeterminefuturesalability.Webaseourdeterminationsontheageoftheinventoryandtheexperienceofourpersonnel.Wereserveinventorythatwedeemtobenotsalableinthequarterinwhichwemakethedetermination.Webelieve,basedonpasthistoryandourpoliciesandprocedures,thatournetinventoryissalable.Inventoryasoffiscal2021and2020was:20212020Inventories:Finishedgoods........................................$960$708Rawmaterials........................................947560$1,907$1,268Property,PlantandEquipmentProperty,plantandequipmentarestatedatcost.Depreciationiscomputedprimarilybythestraight-linemethodovertheestimatedusefullivesoftheassetsrangingfrom15to40yearsforbuildingsandimprovements,2to20yearsformachinery,equipment,andtooling,andoverthetermoftheagreementforcapitalleases.Leaseholdimprovementsaredepreciatedovertheshorteroftheusefullifeoftheimprovementortheleaseterm.Repairsandmaintenancecostsarechargedtoexpenseasincurred.Property,plantandequipmentasoffiscal2021and2020was:20212020Property,plantandequipment:Land,buildingsandimprovements..........................$1,699$1,669Equipmentandconstructioninprogress......................6,8006,2138,4997,882Lessaccumulateddepreciation.............................(3,822)(3,321)$4,677$4,561Long-livedAssetsLong-livedassets,includingproperty,plantandequipmentanddefinitelivedintangibleassetsarereviewedforimpairmentinaccordancewithASC360,“Property,PlantandEquipment,”wheneverfactsandcircumstancesindicatethatthecarryingamountmaynotberecoverable.Specifically,thisprocessinvolvescomparinganasset’scarryingvaluetotheestimatedundiscountedfuturecashflowstheassetisexpectedtogenerateoveritsremaininglife.Ifthisprocessweretoresultintheconclusionthatthecarryingvalueofalong-livedassetwouldnotberecoverable,awrite-downoftheassettofairvaluewouldberecordedthroughachargetooperations.29GoodwillThechangesinthecarryingamountofgoodwillbyreportablesegmentareasfollows:ConsumerPackagingInternationalConsumerPackagingNorthAmericaEngineeredMaterialsHealth,Hygiene&SpecialtiesTotalBalanceasoffiscal2019....................$1,664$1,691$733$963$5,051Foreigncurrencytranslationadjustment.........32——(16)16FinalRPCpurchasepricevaluation............303(151)7—159Heldforsale.............................——(40)(13)(53)Balanceasoffiscal2020....................$1,999$1,540$700$934$5,173Foreigncurrencytranslationadjustment.........361(1)238Dispositions.............................(19)———(19)Balanceasoffiscal2021....................$2,016$1,541$699$936$5,192Infiscalyear2021,theCompanycompletedaqualitativeanalysistoevaluateimpairmentofgoodwillandconcludedthatitwasmorelikelythannotthatthefairvalueforeachreportingunitexceededthecarryingamount.Wereachedthisconclusionbasedonthestrongvaluationswithinthepackagingindustryandoperatingresultsofourreportingunits,inadditiontoleveragingthequantitativetestperformedinfiscal2020.AsaresultofourannualimpairmentevaluationstheCompanyconcludedthatnoimpairmentexistedinfiscal2021.DeferredFinancingFeesDeferredfinancingfeesareamortizedtointerestexpenseusingtheeffectiveinterestmethodoverthelivesoftherespectivedebtagreements.PursuanttoASC835-30,theCompanypresents$77millionand$85millionasoffiscal2021andfiscal2020,respectively,ofdebtissuanceanddeferredfinancingcostsonthebalancesheetasadeductionfromthecarryingamountoftherelateddebtliabilityinsteadofadeferredcharge.IntangibleAssetsThechangesinthecarryingamountofintangibleassetsareasfollows:CustomerRelationshipsTrademarksOtherIntangiblesAccumulatedAmortizationTotalBalanceasoffiscal2019.................$3,407$397$161$(1,185)$2,780Foreigncurrencytranslationadjustment......5373(2)61Amortizationexpense...................———(300)(300)FinalRPCpurchasepricevaluation.........(137)118(25)—(44)Nettingoffullyamortizedintangibles........——(10)10—Balanceasoffiscal2020.................$3,323$522$129$(1,477)$2,497Foreigncurrencytranslationadjustment......324(1)(2)33Amortizationexpense...................———(288)(288)Nettingoffullyamortizedintangibles........(26)(1)(6)33—Balanceasoffiscal2021.................$3,329$525$122$(1,734)$2,242Customerrelationshipsarebeingamortizedusinganacceleratedamortizationmethodwhichcorrespondswiththecustomerattritionratesusedintheinitialvaluationoftheintangiblesovertheestimatedlifeoftherelationshipswhichrangefrom5to17years.Definitelivedtrademarksarebeingamortizedusingthestraight-linemethodovertheestimatedlifeoftheassetswhicharenotmorethan15years.Otherintangibles,whichincludetechnologyandlicenses,arebeingamortizedusingthestraight-linemethodovertheestimatedlifeoftheassetswhichrangefrom5to14years.TheCompanyhastrademarksthattotal$248millionthatareindefinitelivedandwetestannuallyforimpairmentonthefirstdayofthefourthquarter.Wecompletedtheannualimpairmenttestofourindefinitelivedtradenamesutilizingthequalitativemethodin2021andtherelieffromroyaltymethodinfiscal2020and2019andnotednoimpairment.30Futureamortizationexpensefordefinitelivedintangiblesasoffiscal2021forthenextfivefiscalyearsis$262million,$248million,$236million,$222million,and$208millioneachyearforfiscalyearsending2022,2023,2024,2025,and2026,respectively.InsurableLiabilitiesTheCompanyrecordsliabilitiesfortheself-insuredportionofworkers’compensation,health,product,generalandautoliabilities.Thedeterminationoftheseliabilitiesandrelatedexpensesisdependentonclaimsexperience.Formostoftheseliabilities,claimsincurredbutnotyetreportedareestimatedbaseduponhistoricalclaimsexperience.LeasesTheCompanyleasescertainmanufacturingfacilities,warehouses,officespace,manufacturingequipment,officeequipment,andautomobiles.Werecognizeright-of-useassetsandleaseliabilitiesforleaseswithoriginalleasetermsgreaterthanoneyearbasedonthepresentvalueofleasepaymentsovertheleasetermusingourincrementalborrowingrateonacollateralizedbasis.Short-termleases,withoriginalleasetermsoflessthanoneyear,arenotrecognizedonthebalancesheet.Wearepartytocertainleases,namelyformanufacturingfacilities,whichofferrenewaloptionstoextendtheoriginalleaseterm.Renewaloptionsareincludedintheright-of-useassetandleaseliabilitybasedonourassessmentoftheprobabilitythattheoptionswillbeexercised.RefertoNote5.Commitments,LeasesandContingencies.AtOctober2,2021,annualleasecommitmentswereasfollows:FiscalYearOperatingLeasesFinanceLeases2022...............................................$116$152023...............................................100122024...............................................85112025...............................................7662026...............................................676Thereafter...........................................2538Totalleasepayments....................................69758Less:Interest.........................................(118)(6)Presentvalueofleaseliabilities.............................$579$52IncomeTaxesTheCompanyaccountsforincometaxesundertheassetandliabilityapproach,whichrequirestherecognitionofdeferredtaxassetsandliabilitiesfortheexpectedfuturetaxconsequenceofeventsthathavebeenrecognizedintheCompany’sfinancialstatementsorincometaxreturns.Incometaxesarerecognizedduringtheperiodinwhichtheunderlyingtransactionsarerecorded.Deferredtaxes,withtheexceptionofnon-deductiblegoodwill,areprovidedfortemporarydifferencesbetweenamountsofassetsandliabilitiesasrecordedforfinancialreportingpurposesandsuchamountsasmeasuredbytaxlaws.IftheCompanydeterminesthatadeferredtaxassetarisingfromtemporarydifferencesisnotlikelytobeutilized,theCompanywillestablishavaluationallowanceagainstthatassettorecorditatitsexpectedrealizablevalue.TheCompanyrecognizesuncertaintaxpositionswhenitismorelikelythannotthatthetaxpositionwillbesustaineduponexaminationbyrelevanttaxingauthorities,basedonthetechnicalmeritsoftheposition.Theamountrecognizedismeasuredasthelargestamountofbenefitthatisgreaterthan50%likelyofbeingrealizeduponultimatesettlement.TheCompany’seffectivetaxrateisdependentonmanyfactorsincluding:theimpactofenactedtaxlawsinjurisdictionsinwhichtheCompanyoperates;theamountofearningsbyjurisdiction,duetovaryingtaxratesineachcountry;andtheCompany’sabilitytoutilizeforeigntaxcreditsrelatedtoforeigntaxespaidonforeignearningsthatwillberemittedtotheU.S.ComprehensiveIncome(Loss)Comprehensiveincome(loss)iscomprisedofnetincomeandothercomprehensiveincome(loss).Othercomprehensiveincome(losses)includenetunrealizedgainsorlossesresultingfromcurrencytranslationsofforeignsubsidiaries,changesinthevalueofourderivativeinstrumentsandadjustmentstothepensionliability.31Theaccumulatedbalancesrelatedtoeachcomponentofothercomprehensiveincome(loss),netoftaxbeforereclassificationswereasfollows:CurrencyTranslationDefinedBenefitPensionandRetireeHealthBenefitPlansDerivativeInstrumentsAccumulatedOtherComprehensiveLossBalanceasoffiscal2018........................$(175)$(13)$32$(156)Othercomprehensiveincome(loss)................(104)9(107)(202)Netamountreclassifiedfromaccumulatedothercomprehensiveincome(loss)...................—(52)24(28)Balanceasoffiscal2019........................$(279)$(56)$(51)$(386)Othercomprehensiveincome(loss)................13(137)(133)Netamountreclassifiedfromaccumulatedothercomprehensiveincome(loss)...................—(63)31(32)Balanceasoffiscal2020........................$(278)$(116)$(157)$(551)Othercomprehensiveincome(loss)................124(5)70189Netamountreclassifiedfromaccumulatedothercomprehensiveincome(loss)...................—541266Balanceasoffiscal2021........................$(154)$(67)$(75)$(296)PensionTheaccountingforourpensionplansrequiresustorecognizetheoverfundedorunderfundedstatusofthepensionplansonourbalancesheet.Theselectionofassumptionsisbasedonhistoricaltrendsandknowneconomicandmarketconditionsatthetimeofvaluation,aswellasindependentstudiesoftrendsperformedbyouractuaries.Pensionbenefitcostsincludeassumptionsforthediscountrate,mortalityrate,retirementage,andexpectedreturnonplanassets.Retireemedicalplancostsincludeassumptionsforthediscountrate,retirementage,andhealth-care-costtrendrates.Periodically,theCompanyevaluatesthediscountrateandtheexpectedreturnonplanassetsinitsdefinedbenefitpensionandretireehealthbenefitplans.Inevaluatingtheseassumptions,theCompanyconsidersmanyfactors,includinganevaluationofthediscountrates,expectedreturnonplanassetsandthehealth-care-costtrendratesofothercompanies;historicalassumptionscomparedwithactualresults;ananalysisofcurrentmarketconditionsandassetallocations;andtheviewsofadvisers.NetIncomePerShareTheCompanycalculatesbasicnetincomepersharebasedontheweighted-averagenumberofoutstandingcommonshares.TheCompanycalculatesdilutednetincomepersharebasedontheweighted-averagenumberofoutstandingcommonsharesplustheeffectofdilutivesecurities.UseofEstimatesThepreparationofthefinancialstatementsinconformitywithU.S.generallyacceptedaccountingprinciplesrequiresmanagementtomakeextensiveuseofestimatesandassumptionsthataffectthereportedamountofassetsandliabilitiesanddisclosureofcontingentassetsandliabilitiesandthereportedamountsofsalesandexpenses.Actualresultscoulddiffermateriallyfromtheseestimates.Changesinestimatesarerecordedinresultsofoperationsintheperiodthattheeventorcircumstancesgivingrisetosuchchangesoccur.RecentlyIssuedAccountingPronouncementsCreditLossesEffectiveSeptember27,2020,theCompanyadoptedASU2016-13,FinancialInstruments—CreditLosses(Topic326).Thenewstandardrequiresentitiestomeasureallexpectedcreditlossesformostfinancialassetsheldatthe32reportingdatebasedonanexpectedlossmodel,whichincludeshistoricalexperience,currentconditions,andreasonableandsupportableforecasts.TheadoptionofthisstandarddidnothaveamaterialimpactontheCompany’sconsolidatedfinancialstatements.DefinedBenefitPlansInAugust2018,theFASBissuedASU2018-14,ChangestotheDisclosureRequirementsforDefinedBenefitPlans.Thenewstandardremovesrequirementstodisclosetheamountsinaccumulatedothercomprehensiveincomeexpectedtoberecognizedascomponentsofnetperiodicbenefitcostoverthenextfiscalyearandtheeffectsofaone-percentage-pointchangesinassumedhealthcarecosttrendrates.Thestandardalsoaddsrequirementstodisclosethereasonsforsignificantgainsandlossesrelatedtochangesinthebenefitobligationsfortheperiodandtheaccumulatedbenefitobligation(ABO)forplanswithABOsinexcessofplanassets.TheCompanywilladoptthisstandardeffectiveforfiscal2022.Wedonotexpectamaterialchangetoourdisclosures.IncomeTaxesInDecember2019,theFASBissuedASU2019-12,IncomeTaxes—SimplifyingtheAccountingforIncomeTaxes(Topic740).Thenewguidanceeliminatescertainexceptionsrelatedtotheapproachforintraperiodtaxallocation,themethodologyforcalculatingincometaxesinaninterimperiodandtherecognitionofdeferredtaxliabilitiesforoutsidebasisdifferences.Italsoclarifiesandsimplifiesotheraspectsoftheaccountingforincometaxes.TheCompanywilladoptthisstandardeffectiveforfiscal2022.Wedonotexpectamaterialchangetoourfinancialstatementsordisclosures.ReferenceRateReformInMarch2020,theFASBissuedASU2020-04,ReferenceRateReform—FacilitationoftheEffectsofReferenceRateReformonFinancialReporting(Topic848).ThisstandardprovidestemporaryoptionalexpedientsandexceptionstotheGAAPguidanceoncontractmodificationsandhedgeaccountingtoeasethefinancialreportingburdensoftheexpectedmarkettransitionfromLIBORandotherinterbankofferedratestoalternativereferencerates,suchasSOFR.ASU2020-04iseffectiveuponissuanceandgenerallycanbeappliedthroughtheendofcalendaryear2022.TheCompanyisevaluatingwhetheritplanstoadopttheoptionalexpedientsandexceptionsprovidedunderthisnewstandard.2.DispositionsDuringfiscal2021,theCompanycompletedthesaleofitsU.S.FlexiblePackagingConvertingbusinesswhichwasprimarilyoperatedintheEngineeredMaterialssegmentfornetproceedsof$140millionandwasclassifiedasheldforsaleintheprioryearwithassetsof$162millioninothercurrentassetsandliabilitiesof$25millioninothercurrentliabilities.Additionally,theCompanysolditsnon-coreCzechRepublicReactionInjectionMoldingbusinesswhichwasoperatedintheConsumerPackagingInternationalsegmentfornetproceedsof$22million.Anetpretaxlossonthedivestituresof$22millionwasrecordedinfiscal2021withinRestructuringandtransactionactivitiesontheConsolidatedStatementsofIncome.TheU.S.FlexiblePackagingConvertingbusinessandtheCzechRepublicReactionInjectionMoldingbusinessrecordednetsalesduringfiscal2020of$203millionand$41million,respectively.3.Long-TermDebtLong-termdebtconsistsofthefollowing:FacilityMaturityDateOctober2,2021September26,2020Termloan...................................July2026$3,440$4,208Revolvinglineofcredit..........................May2024——0.95%FirstPrioritySeniorSecuredNotes.............February2024800—1.00%FirstPrioritySeniorSecuredNotes(a)...........July20258108141.57%FirstPrioritySeniorSecuredNotes.............January20261,525—4.875%FirstPrioritySeniorSecuredNotes............July20261,2501,2501.65%FirstPrioritySeniorSecuredNotes.............January2027400—33FacilityMaturityDateOctober2,2021September26,20201.50%FirstPrioritySeniorSecuredNotes(a)...........July20274344364.50%SecondPrioritySeniorSecuredNotes...........February20263005005.625%SecondPrioritySeniorSecuredNotes..........July2027500500Debtdiscountsanddeferredfees...................(77)(85)Financeleasesandother.........................Various78121Retireddebt..................................Various—2,493Totallong-termdebt............................9,46010,237Currentportionoflong-termdebt..................(21)(75)Long-termdebt,lesscurrentportion.................$9,439$10,162(a)EurodenominatedFiscal2021ActivityInfiscal2021,theCompanyissued$800millionaggregateprincipalamountof0.95%firstpriorityseniorsecurednotesdue2024,$1,525millionaggregateprincipalamountof1.57%firstpriorityseniorsecurednotesdue2026,and$400millionaggregateprincipalamountof1.65%firstpriorityseniorsecurednotesdue2027.TheproceedswereusedtoprepayvariousmoreexpensivesecurednotesandaportionoftheoutstandingTermloan.Debtextinguishmentcostsof$27million,primarilycomprisedofdeferreddebtdiscountandfinancingfees,wererecordedinOtherexpense,netontheConsolidatedStatementsofIncomeupontheextinguishmentofaportionoftheTermloansandprepaymentsonthenotes.BerryGlobal,Inc.SeniorSecuredCreditFacilityOurwhollyownedsubsidiaryBerryGlobal,Inc.’sseniorsecuredcreditfacilitiesconsistof$3.4billionoftermloansandan$850millionasset-basedrevolvinglineofcredit.Theavailabilityundertherevolvinglineofcreditisthelesserof$850millionorbasedonadefinedborrowingbasewhichiscalculatedbasedonavailableaccountsreceivableandinventory.Thetermloanfacilityispayableuponmaturity.TheCompanymayvoluntarilyrepayoutstandingloansundertheseniorsecuredcreditfacilitiesatanytimewithoutpremiumorpenalty,otherthancustomary“breakage”costswithrespecttoeurodollarloans.AllobligationsundertheseniorsecuredcreditfacilitiesareunconditionallyguaranteedbytheCompanyand,subjecttocertainexceptions,eachoftheCompany’sexistingandfuturedirectandindirectdomesticsubsidiaries.TheguaranteesofthoseobligationsaresecuredbysubstantiallyalloftheCompany’sassetsaswellasthoseofeachdomesticsubsidiaryguarantor.Despitenothavingfinancialmaintenancecovenants,ourdebtagreementscontaincertainnegativecovenants.WeareincompliancewithallcovenantsasofOctober2,2021.Thefailuretocomplywiththesenegativecovenantscouldrestrictourabilitytoincuradditionalindebtedness,effectacquisitions,enterintocertainsignificantbusinesscombinations,makedistributionsorredeemindebtedness.Futurematuritiesoflong-termdebtasoffiscalyearend2021areasfollows:FiscalYearMaturities2022..........................................................$212023..........................................................142024..........................................................8122025..........................................................8172026..........................................................6,525Thereafter......................................................1,348$9,537Interestpaidwas$318million,$430million,and$330millioninfiscal2021,2020,and2019,respectively.344.FinancialInstrumentsandFairValueMeasurementsInthenormalcourseofbusiness,theCompanyisexposedtocertainrisksarisingfrombusinessoperationsandeconomicfactors.TheCompanymayusederivativefinancialinstrumentstohelpmanagemarketriskandreducetheexposuretofluctuationsininterestratesandforeigncurrencies.Thesefinancialinstrumentsarenotusedfortradingorotherspeculativepurposes.Forthosederivativeinstrumentsthataredesignatedandqualifyashedginginstruments,theCompanymustdesignatethehedginginstrument,basedupontheexposurebeinghedged,asafairvaluehedge,cashflowhedge,orahedgeofanetinvestmentinaforeignoperation.Totheextenthedgingrelationshipsarefoundtobeeffective,changesinthefairvalueofthederivativesareoffsetbychangesinthefairvalueoftherelatedhedgeditemandrecordedtoAccumulatedothercomprehensiveloss.Changesinthefairvalueofaderivativenotdesignatedasahedge,arerecordedtotheConsolidatedStatementsofIncome.Cross-CurrencySwapsTheCompanyispartytocertaincross-currencyswapstohedgeaportionofourforeigncurrencyrisk.TheswapagreementsmatureMay2022(€250million),June2024(€1,625million)andJuly2027(£700million).Inadditiontothecross-currencyswaps,wehedgeaportionofourforeigncurrencyriskbydesignatingforeigncurrencydenominatedlong-termdebtasnetinvestmenthedgesofcertainforeignoperations.AsofOctober2,2021,wehadoutstandinglong-termdebtof€785millionthatwasdesignatedasahedgeofournetinvestmentincertaineuro-denominatedforeignsubsidiaries.Whenvaluingcross-currencyswaps,theCompanyutilizesLevel2inputs(substantiallyobservable).Duringfiscal2020,theCompanyenteredintotransactionstocashsettleexistingcross-currencyswapsandreceivedproceedsof$281million.TheswapsettlementimpacthasbeenincludedasacomponentofCurrencytranslationwithinAccumulatedothercomprehensiveloss.Followingthesettlementoftheexistingcross-currencyswaps,weenteredintonewcross-currencyswapswithmatchingnotionalamountsandmaturitydatesoftheoriginalswaps.InterestRateSwapsTheprimarypurposeoftheCompany’sinterestrateswapactivitiesistomanageinterestexpensevariabilityassociatedwithouroutstandingvariableratetermloandebt.WhenvaluinginterestrateswapstheCompanyutilizesLevel2inputs(substantiallyobservable).Duringfiscal2021,theCompanyissuedvariousfixedratefirstpriorityseniorsecurednotesandusedtheproceedstoprepayaportionofitsvariablerateTermloans.Asaresult,theCompanyde-designateda$1billioninterestrateswaptransactionthatwassettoexpireinJune2026.TheamountsincludedinAccumulatedothercomprehensivelossatthedateofde-designationarebeingamortizedtoInterestexpensethroughthetermoftheoriginalswap.AsofOctober2,2021,theCompanyeffectivelyhad(i)a$450millioninterestrateswaptransactionthatswapsaone-monthvariableLIBORcontractforafixedannualrateof1.398%,withanexpirationdateinJune2026,(ii)a$400millioninterestrateswaptransactionthatswapsaone-monthvariableLIBORcontractforafixedannualrateof1.916%withanexpirationdateinJune2026,(iii)an$884millioninterestrateswaptransactionthatswapsaone-monthvariableLIBORcontractforafixedannualrateof1.857%,withanexpirationinJune2024,and(iv)a$473millioninterestrateswaptransactionthatswapsaone-monthvariableLIBORcontractforafixedannualrateof2.050%,withanexpirationinJune2024.TheCompanyrecordsthefairvaluepositionsofallderivativefinancialinstrumentsonanetbasisbycounterpartyforwhichamasternettingarrangementisutilized.Balancesonagrossbasisareasfollows:DerivativeInstrumentsHedgeDesignationBalanceSheetLocation20212020Cross-currencyswaps......................DesignatedOtherlong-termliabilities$323$270Interestrateswaps........................DesignatedOtherlong-termliabilities82226Interestrateswaps........................NotdesignatedOtherlong-termliabilities49—35TheeffectoftheCompany’sderivativeinstrumentsontheConsolidatedStatementsofIncomeisasfollows:DerivativeinstrumentsStatementsofIncomeLocation202120202019Cross-currencyswaps(a)......................................Interestexpense$(8)$(25)$(19)Cross-currencyswaps(b)......................................Otherexpense——41Foreignexchangeforwardcontracts.............................Otherexpense——99Interestrateswaps.........................................Interestexpense69322(a)Designated(b)NotdesignatedTheamortizationrelatedtounrealizedlossesinAccumulatedothercomprehensivelossisexpectedtobe$9millioninthenext12months.TheCompany’sfinancialinstrumentsconsistprimarilyofcashandcashequivalents,long-termdebt,interestrateswapagreements,cross-currencyswapagreementsandcapitalleaseobligations.Thefairvalueofourlong-termindebtednessexceededbookvalueby$133millionasoffiscal2021,and$26millionasoffiscal2020.TheCompany’slong-termdebtfairvaluesweredeterminedusingLevel2inputsasothersignificantobservableinputswerenotavailable.Non-recurringFairValueMeasurementsTheCompanyhascertainassetsthataremeasuredatfairvalueonanon-recurringbasiswhenimpairmentindicatorsarepresentorwhentheCompanycompletesanacquisition.TheCompanyadjustscertainlong-livedassetstofairvalueonlywhenthecarryingvaluesexceedthefairvalues.ThecategorizationoftheframeworkusedtovaluetheassetsisconsideredLevel3,duetothesubjectivenatureoftheunobservableinputsusedtodeterminethefairvalue.Theseassetsthataresubjecttoourannualimpairmentanalysisprimarilyincludeourdefinitelivedandindefinitelivedintangibleassets,includinggoodwillandourproperty,plantandequipment.TheCompanyreviewsgoodwillandotherindefinitelivedassetsforimpairmentasofthefirstdayofthefourthfiscalquartereachyear,andmorefrequentlyifimpairmentindicatorsexist.TheCompanydeterminedgoodwillandotherindefinitelivedassetswerenotimpairedinourannualfiscal2021,2020,and2019assessments.Includedinthefollowingtablesarethemajorcategoriesofassetsandtheircurrentcarryingvaluesthatweremeasuredatfairvalueonanon-recurringbasisinthecurrentyear,alongwiththeimpairmentlossrecognizedonthefairvaluemeasurementforthefiscalyearsthenended:2021Level1Level2Level3TotalImpairmentIndefinitelivedtrademarks..........................$—$—$248$248$—Goodwill......................................——5,1925,192—Definitelivedintangibleassets.......................——1,9941,994—Property,plantandequipment.......................——4,6774,6771Total.........................................$—$—$12,111$12,111$12020Level1Level2Level3TotalImpairmentIndefinitelivedtrademarks..........................$—$—$248$248$—Goodwill......................................——5,1735,173—Definitelivedintangibleassets.......................——2,2492,249—Property,plantandequipment.......................——4,5614,5612Total.........................................$—$—$12,231$12,231$2362019Level1Level2Level3TotalImpairmentIndefinitelivedtrademarks..........................$—$—$248$248$—Goodwill......................................——5,0515,051—Definitelivedintangibleassets.......................——2,5322,532—Property,plantandequipment.......................——4,7144,7148Total.........................................$—$—$12,545$12,545$85.Commitments,LeasesandContingenciesTheCompanyhasvariouspurchasecommitmentsforrawmaterials,suppliesandpropertyandequipmentincidentaltotheordinaryconductofbusiness.CollectiveBargainingAgreementsAttheendoffiscal2021,weemployedapproximately47,000employees,andapproximately20%ofthoseemployeeswerecoveredbycollectivebargainingagreements.Themajorityoftheseagreementsaredueforrenegotiationinfiscal2022.Ourrelationswithemployeesundercollectivebargainingagreementsremainsatisfactoryandtherehavebeennosignificantworkstoppagesorotherlabordisputesduringthepastthreeyears.LeasesSupplementalleaseinformationisasfollows:LeasesClassification20212020Operatingleases:Operatingleaseright-of-useassets......Right-of-useasset$562$562Operatingleaseliabilities.............Othercurrentliabilities113115Operatingleaseliabilities.............Operatingleaseliability466464Financeleases:Financeleaseright-of-useassets........Property,plant,andequipment,net$57$78Currentfinanceleaseliabilities.........Currentportionoflong-termdebt1417Noncurrentfinanceleaseliabilities......Long-termdebt,lesscurrentportion3859LeaseTypeCashFlowClassificationLeaseExpenseCategory20212020Operatingleases.............OperatingcashflowsLeasecost$127$120Financeleases...............OperatingcashflowsInterestexpense23Financeleases...............Financingcashflows2338Financeleases..............._Amortizationofright-of-useassets142420212020Weighted-averageremainingleaseterm–operatingleases............8years8yearsWeighted-averageremainingleaseterm–financeleases.............4years4yearsWeighted-averagediscountrate–operatingleases.................4.5%4.6%Weighted-averagediscountrate–financeleases...................4.1%3.8%Right-of-useassetsobtainedinexchangefornewoperatingleaseliabilitieswere$60millionforfiscal2021.LitigationTheCompanyispartytovariouslegalproceedingsinvolvingroutineclaimswhichareincidentaltoitsbusiness.AlthoughtheCompany’slegalandfinancialliabilitywithrespecttosuchproceedingscannotbeestimatedwithcertainty,theCompanybelievesthatanyultimateliabilitywouldnotbematerialtoitsfinancialposition,resultsofoperationsorcashflows.376.IncomeTaxesTheCompanyisbeingtaxedattheU.S.corporatelevelasaC-CorporationandhasprovidedU.S.Federal,Stateandforeignincometaxes.Significantcomponentsofincometaxexpenseforthefiscalyearsendedareasfollows:202120202019CurrentU.S.Federal....................................................$56$84$60State......................................................141211Non-U.S......................................................17515467Totalcurrent....................................................245250138Deferred:U.S.Federal....................................................17(29)(47)State......................................................(6)(13)(3)Non-U.S......................................................(84)(54)(2)Totaldeferred...................................................(73)(96)(52)Expenseforincometaxes...........................................$172$154$86U.S.incomefromcontinuingoperationsbeforeincometaxeswas$276million,$206million,and$229millionforfiscal2021,2020,and2019,respectively.Non-U.S.incomefromcontinuingoperationsbeforeincometaxeswas$629million,$507million,and$261millionforfiscal2021,2020,and2019,respectively.TheCompanypaidcashtaxesof$200million,$243million,and$115millioninfiscal2021,2020,and2019,respectively.ThereconciliationbetweenU.S.FederalincometaxesatthestatutoryrateandtheCompany’sbenefitforincometaxesoncontinuingoperationsforfiscalyearsendedareasfollows:202120202019U.S.Federalincometaxexpenseatthestatutoryrate........................$190$150$103Adjustmentstoreconciletotheincometaxprovision:U.S.stateincometaxexpense.......................................1169Federalandstatecredits..........................................(10)(14)(8)Share-basedcompensation........................................(8)(4)(12)Taxlawchanges................................................11——Withholdingtaxes..............................................1315—Changesinforeignvaluationallowance................................(14)(8)13ForeignincometaxedintheU.S.....................................1293RatedifferencesbetweenU.S.andforeign..............................(8)(6)7Saleofsubsidiary...............................................16—(38)Permanentforeigncurrencydifferences................................(30)——Other.......................................................(11)69Expenseforincometaxes...........................................$172$154$8638Deferredincometaxesresultfromtemporarydifferencesbetweentheamountofassetsandliabilitiesrecognizedforfinancialreportingandtaxpurposes.Thecomponentsofthenetdeferredincometaxliabilityasoffiscalyearsendedareasfollows:20212020Deferredtaxassets:Allowancefordoubtfulaccounts.......................................$3$3Deferredgainonsale-leaseback........................................45Accruedliabilitiesandreserves........................................101104Inventories......................................................1310Netoperatinglosscarryforward.......................................273291Interestexpensecarryforward.........................................5828Derivatives......................................................105127Leaseliability....................................................144147Researchanddevelopmentcreditcarryforward.............................1311Federalandstatetaxcredits..........................................1314Other..........................................................4233Totaldeferredtaxassets.............................................769773Valuationallowance................................................(126)(150)Totaldeferredtaxassets,netofvaluationallowance..........................643623Deferredtaxliabilities:Property,plantandequipment........................................430429Intangibleassets..................................................563588Leasedasset.....................................................139142Other..........................................................1311Totaldeferredtaxliabilities.........................................1,1451,170Netdeferredtaxliability.............................................$(502)$(547)TheCompanyhad$66millionofnetdeferredtaxassetsrecordedinOtherassets,and$568millionofnetdeferredtaxliabilitiesrecordedinDeferredincometaxesontheConsolidatedBalanceSheets.AsofOctober2,2021,theCompanyhasrecordeddeferredtaxassetsrelatedtofederal,state,andforeignnetoperatinglosses,interestexpense,andtaxcredits.Theseattributesarespreadacrossmultiplejurisdictionsandgenerallyhaveexpirationperiodsbeginningin2021whileaportionremainsavailableindefinitely.Eachattributehasbeenassessedforrealizationandavaluationallowanceisrecordedagainstthedeferredtaxassetstobringthenetamountrecordedtotheamountmorelikelythannottoberealized.Thevaluationallowanceagainstdeferredtaxassetswas$126millionand$150millionasofthefiscalyearsended2021and2020,respectively,relatedtotheforeignandU.S.federalandstateoperations.TheCompanyispermanentlyreinvestedexcepttotheextenttheforeignearningsarepreviouslytaxedortotheextentthatwehavesufficientbasisinournon-U.S.subsidiariestorepatriateearningsonanincometaxfreebasis.39UncertainTaxPositionsThefollowingtablesummarizestheactivityrelatedtoourgrossunrecognizedtaxbenefitsforfiscalyearsended:20212020Beginningunrecognizedtaxbenefits.........................................$168$165Grossincreases–taxpositionsinpriorperiods................................913Grossdecreases–taxpositionsinpriorperiods...............................(6)(12)Grossincreases–currentperiodtaxpositions................................6—Grossincreases–fromRPCacquisition....................................—7Settlements........................................................(4)(1)Lapseofstatuteoflimitations...........................................(14)(4)Endingunrecognizedtaxbenefits...........................................$159$168Asoffiscalyearend2021,theamountofunrecognizedtaxbenefitthat,ifrecognized,wouldaffectoureffectivetaxratewas$136millionandwehad$43millionaccruedforpaymentofinterestandpenaltiesrelatedtoouruncertaintaxpositions.Ourpenaltiesandinterestrelatedtouncertaintaxpositionsareincludedinincometaxexpense.Asaresultofglobaloperations,wefileincometaxreturnsintheU.S.federal,variousstateandlocal,andforeignjurisdictionsandareroutinelysubjecttoexaminationbytaxingauthoritiesthroughouttheworld.Excludingpotentialadjustmentstonetoperatinglosses,theU.S.federalandstateincometaxreturnsarenolongersubjecttoincometaxassessmentsforyearsbefore2017.Withfewexceptions,themajorforeignjurisdictionsarenolongersubjecttoincometaxassessmentsforyearbefore2014.7.RetirementPlansTheCompanysponsorsdefinedcontributionretirementplanscoveringsubstantiallyallemployees.Contributionsarebaseduponafixeddollaramountforemployeeswhoparticipateandpercentagesofemployeecontributionsatspecifiedthresholds.Contributionexpensefortheseplanswas$45million,$40million,and$26millionforfiscal2021,2020,and2019,respectively.TheNorthAmericandefinedbenefitpensionplans,whichcovercertainmanufacturingfacilities,areclosedtofutureentrants.ThemajorityoftheretirementbenefitobligationsintheUnitedKingdom(“UK”)aredefinedbenefitpensionplans,andareclosedtofutureentrants.Theassetsofalltheplansareheldinaseparatetrusteeadministeredfundtomeetlong-termliabilitiesforpastandpresentemployees.MostoftheCompany’sGermanoperationsprovidenon-contributorypensionplans.ThereisnoexternalfundingfortheseplansalthoughtheyaresecuredbyinsolvencyinsurancerequiredunderGermanlaw.Ingeneral,theplansprovideafixedretirementbenefitnotrelatedtosalariesandareclosedtonewentrants.Germanyrepresents$102millionofMainlandEurope’stotalunderfundedstatus.ThenetamountofliabilityrecognizedisincludedinEmployeeBenefitObligationsontheConsolidatedBalanceSheets.TheCompanyusesfiscalyearendasameasurementdatefortheretirementplans.20212020ChangeinProjectedBenefitObligations(PBO)NorthAmericaUKMainlandEuropeTotalNorthAmericaUKMainlandEuropeTotalBeginningofperiod....................$361$888$192$1,441$344$827$206$1,377Servicecost..........................—145——11Interestcost..........................8151241015126Currency............................148251—311344Actuarialloss(gain)....................(12)(28)9(31)3041(7)64Benefitsettlements.....................(3)—(5)(8)(6)—(16)(22)Benefitspaid.........................(17)(36)(7)(60)(17)(26)(6)(49)Endofperiod.........................$338$888$196$1,422$361$888$192$1,4414020212020ChangeinFairValueofPlanAssetsNorthAmericaUKMainlandEuropeTotalNorthAmericaUKMainlandEuropeTotalBeginningofperiod....................$268$769$54$1,091$269$729$67$1,065Currency...........................141143—27431Returnonassets......................36283672221(2)41Contributions........................126734—18725Benefitsettlements.....................(3)—(5)(8)(6)—(16)(22)Benefitspaid.........................(17)(36)(7)(60)(17)(26)(6)(49)Endofperiod........................$286$828$53$1,167$268$769$54$1,091Underfundedstatus....................$(52)$(60)$(143)$(255)$(93)$(119)$(138)$(350)Attheendoffiscal2021,theCompanyhad$128millionofnetunrealizedlossesrecordedinAccumulatedothercomprehensivelossontheConsolidatedBalanceSheets.TheCompanyexpects$3milliontoberealizedinfiscal2022.Thefollowingtablepresentssignificantweighted-averageassumptionsusedtodeterminebenefitobligationandbenefitcostforthefiscalyearsended:2021(Percentages)NorthAmericaUKMainlandEuropeWeighted-averageassumptions:Discountrateforbenefitobligation...............................2.52.21.0Discountratefornetbenefitcost.................................2.21.60.8Expectedreturnonplanassetsfornetbenefitcosts....................6.14.12.0(Percentages)2020(Percentages)NorthAmericaUKMainlandEuropeWeighted-averageassumptions:Discountrateforbenefitobligation...............................2.21.60.8Discountratefornetbenefitcost.................................2.91.80.7Expectedreturnonplanassetsfornetbenefitcosts....................6.13.82.2Inevaluatingtheexpectedreturnonplanassets,Berryconsidereditshistoricalassumptionscomparedwithactualresults,ananalysisofcurrentmarketconditions,assetallocations,andtheviewsofadvisors.Thereturnonplanassetsisderivedfromtargetallocationsandhistoricalyieldbyassettype.Aonequarterofapercentagepointreductionofexpectedreturnonpensionassets,mortalityrateordiscountrateappliedtothepensionliabilitywouldresultinanimmaterialchangetotheCompany’spensionexpense.InaccordancewiththeguidancefromtheFASBforemployers’disclosureaboutpostretirementbenefitplanassetsthetablebelowdisclosesfairvaluesofeachpensionplanassetcategoryandlevelwithinthefairvaluehierarchyinwhichitfalls.Therewerenomaterialchangesortransfersbetweenlevel3assetsandtheotherlevels.41Fiscal2021AssetCategoryLevel1Level2Level3TotalCashandcashequivalents....................$55$—$—$55U.S.largecapcomingledequityfunds............84——84U.S.midcapequitymutualfunds...............50——50U.S.smallcapequitymutualfunds..............2——2Internationalequitymutualfunds...............14271—285Realestateequityinvestmentfunds..............786101194Corporatebondmutualfunds..................6——6Corporatebonds...........................—15740197Internationalfixedincomefunds................81161—242Internationalinsurancepolicies................——5252Total...................................$299$675$193$1,167Fiscal2020AssetCategoryLevel1Level2Level3TotalCashandcashequivalents....................$18$18$—$36U.S.largecapcomingledequityfunds............7227—99U.S.midcapequitymutualfunds...............4916—65U.S.smallcapequitymutualfunds..............316—19Internationalequitymutualfunds...............1299—111Realestateequityinvestmentfunds..............315891252Corporatebondmutualfunds..................10—2737Corporatebonds...........................—146—146Internationalfixedincomefunds................66209—275Internationalinsurancepolicies................——5151Total...................................$233$689$169$1,091Thefollowingbenefitpayments,whichreflectexpectedfutureservice,asappropriate,areexpectedtobepaidforthefiscalyearend:NorthAmericaUKMainlandEuropeTotal2022...................................$19$35$7$612023...................................19367622024...................................19368632025...................................20387652026...................................19387642027-2031...............................9420949352Netpensionexpenseincludedthefollowingcomponentsasoffiscalyearsended:202120202019Servicecost.........................................$5$1$2Interestcost.........................................242617Amortizationofnetactuarialloss..........................951Expectedreturnonplanassets............................(51)(46)(24)Netperiodicbenefitexpense(income).......................$(13)$(14)$(4)Ourdefinedbenefitpensionplanassetallocationsasoffiscalyearsendedareasfollows:42AssetCategory20212020Equitysecuritiesandequity-likeinstruments...................................53%50%Debtsecuritiesanddebt-like..............................................3842Internationalinsurancepolicies............................................45Other..............................................................53Total...............................................................100%100%TheCompany’sretirementplanassetsareinvestedwiththeobjectiveofprovidingtheplanstheabilitytofundcurrentandfuturebenefitpaymentrequirementswhileminimizingannualCompanycontributions.Theretirementplansheld$45millionoftheCompany’sstockattheendoffiscal2021.TheCompanyre-addressestheallocationofitsinvestmentsonaregularbasis.8.RestructuringandTransactionActivitiesTheCompanyhasannouncedvariousrestructuringplansinthelastthreefiscalyearswhichincludedshuttingdownfacilities.Inallinstances,themajorityoftheoperationsfromrationalizedfacilitieswastransferredtootherfacilitieswithintherespectivesegment.Duringfiscal2019,2020,and2021,theCompanydidnotshutdownanyfacilitieswithsignificantnetsales.Thetablebelowsetsforththesignificantcomponentsoftherestructuringandtransactionactivitychargesrecognizedforthefiscalyearsended,bysegment:202120202019ConsumerPackagingInternational.........................$56$58$54ConsumerPackagingNorthAmerica.......................—1012EngineeredMaterials...................................(4)62Health,Hygiene&Specialties.............................(1)5(200)Consolidated........................................$51$79$(132)Thetablebelowsetsforththeactivitywithrespecttotherestructuringchargesandtheimpactonouraccruedrestructuringreserves:RestructuringEmployeeSeveranceandBenefitsFacilityExitCostsNon-cashImpairmentChargesTransactionActivitiesTotalBalanceasoffiscal2019......................$2$5$—$—$7Charges..................................34923479Non-cashassetimpairment....................——(2)—(2)Cash....................................(26)(7)—(34)(67)Balanceasoffiscal2020......................$10$7$—$—$17Charges..................................11713251Non-cashassetimpairment....................——(1)—(1)Cash....................................(15)(9)—(32)(56)Balanceasoffiscal2021......................$6$5$—$—$11Since2019,cumulativecostsattributedtorestructuringprogramstotal$86million.9.Stockholders’EquityShareRepurchasesNoshareswererepurchasedduringfiscal2021and2020.Duringfiscal2019,theCompanyrepurchasedapproximately1.5millionsharesfor$72million,atanaveragepriceof$47.64.Allsharerepurchaseswereimmediatelyretired.43Commonstockwasreducedbythenumberofsharesretiredat$0.01parvaluepershare.TheCompanyallocatestheexcesspurchasepriceoverparvaluebetweenadditionalpaid-incapitalandretainedearnings.EquityIncentivePlansTheCompanyhasshareholder-approvedstockplansunderwhichoptionsandrestrictedstockunitshavebeengrantedtoemployeesatthemarketvalueoftheCompany’sstockonthedateofgrant.Infiscal2021,theCompanyamendedthe2015BerryGlobalGroup,Inc.Long-TermIncentivePlantoauthorizetheissuanceof20.8millionshares,anincreaseof8.3millionsharesfromthepreviousauthorization.TheCompanyrecognizedtotalshare-basedcompensationexpenseof$40million,$33million,and$27millionforfiscal2021,2020,and2019,respectively.Theintrinsicvalueofoptionsexercisedinfiscal2021was$58million.Informationrelatedtotheequityincentiveplansasofthefiscalyearsendedareasfollows:20212020NumberofShares(inthousands)WeightedAverageExercisePriceNumberofShares(inthousands)WeightedAverageExercisePriceOptionsoutstanding,beginningofperiod.......11,460$40.8410,263$37.82Optionsgranted.........................1,94654.222,56245.60Optionsexercised........................(1,961)32.23(1,223)24.96Optionsforfeitedorcancelled...............(143)48.72(142)45.05Optionsoutstanding,endofperiod...........11,302$44.5411,460$40.84Optionpricerangeatendofperiod...........$3.04–54.33$3.04–54.33Optionsexercisableatendofperiod...........5,2605,599Weightedaveragefairvalueofoptionsgrantedduringperiod.........................$16.36$14.26Generally,optionsvestannuallyinequalinstallmentscommencingoneyearfromthedateofgrantandhaveavestingtermofeitherfourorfiveyearsandanexpirationtermof10yearsfromthedateofgrant.ThefairvalueforoptionsgrantedhasbeenestimatedatthedateofgrantusingaBlack-Scholesmodel,generallywiththefollowingweightedaverageassumptions:202120202019Risk-freeinterestrate..................................0.5%1.7%2.5%Dividendyield.......................................0.0%0.0%0.0%Volatilityfactor.......................................30.4%27.2%26.3%Expectedoptionlife...................................6.0years6.5years6.5yearsThefollowingtablesummarizesinformationabouttheoptionsoutstandingasoffiscal2021:RangeofExercisePricesNumberOutstandingIntrinsicValueofOutstandingWeightedRemainingContractualLifeWeightedExercisePriceNumberExercisableIntrinsicValueofExercisableUnrecognizedCompensationWeightedRecognitionPeriod(inthousands)(inmillions)(inthousands)(inmillions)(inmillions)$3.04–54.33......11,302$1936.6years$44.545,260$115$481.8years44Infiscal2021,theCompanyissuedrestrictedstockunits,whichgenerallyvestinequalinstallmentsoverfouryears.Compensationcostisrecordedbaseduponthefairvalueofthesharesatthegrantdate.2021NumberofShares(inthousands)WeightedAverageGrantPriceAwardsoutstanding,beginningofperiod...................—$—Awardsgranted.....................................20354.22Awardsvested......................................(2)54.22Awardsforfeitedorcancelled...........................(5)54.22Awardsoutstanding,endofperiod.......................196$54.22TheCompanyhadequityincentivesharesavailableforgrantof8.5millionand2.7millionasofOctober2,2021andSeptember26,2020,respectively.10.SegmentandGeographicDataBerry’soperationsareorganizedintofourreportingsegments:ConsumerPackagingInternational,ConsumerPackagingNorthAmerica,EngineeredMaterials,andHealth,Hygiene&Specialties.Thestructureisdesignedtoalignuswithourcustomers,provideimprovedservice,anddrivefuturegrowthinacostefficientmanner.Selectedinformationbyreportablesegmentispresentedinthefollowingtables:202120202019NetsalesConsumerPackagingInternational.............................$4,242$3,789$1,337ConsumerPackagingNorthAmerica...........................3,1412,5602,333EngineeredMaterials.......................................3,3092,7662,460Health,Hygiene&Specialties.................................3,1582,5942,748Total..................................................$13,850$11,709$8,878OperatingincomeConsumerPackagingInternational...........................$317$273$62ConsumerPackagingNorthAmerica..........................276275177EngineeredMaterials.....................................301336266Health,Hygiene&Specialties...............................398295469Total..................................................$1,292$1,179$974DepreciationandamortizationConsumerPackagingInternational...........................$341$315$106ConsumerPackagingNorthAmerica..........................224230198EngineeredMaterials.....................................112117112Health,Hygiene&Specialties...............................177183197Total..................................................$854$845$61320212020Totalassets:ConsumerPackagingInternational....................................$7,800$7,713ConsumerPackagingNorthAmerica..................................3,8613,320EngineeredMaterials.............................................2,3312,017Health,Hygiene&Specialties.......................................3,8903,651Totalassets...................................................$17,882$16,70145Selectedinformationbygeographicalregionispresentedinthefollowingtables:202120202019Netsales:UnitedStatesandCanada...................................$7,351$6,250$6,293Europe.................................................4,8984,2231,637Restofworld............................................1,6011,236948Totalnetsales..........................................$13,850$11,709$8,87820212020Long-livedassets:UnitedStatesandCanada..........................................$6,682$6,742Europe.......................................................4,5744,665Restofworld...................................................1,5321,477Totallong-livedassets...........................................$12,788$12,884Selectedinformationbyproductlineispresentedinthefollowingtables:(inpercentages)202120202019Netsales:Packaging....................................................81%80%85%Non-packaging................................................192015ConsumerPackagingInternational.................................100%100%100%RigidOpenTop................................................57%55%52%RigidClosedTop...............................................434548ConsumerPackagingNorthAmerica...............................100%100%100%CoreFilms...................................................63%58%49%Retail&Industrial..............................................374251EngineeredMaterials...........................................100%100%100%Health.......................................................18%18%14%Hygiene......................................................474748Specialties....................................................353538Health,Hygiene&Specialties.....................................100%100%100%11.NetIncomeperShareBasicnetincomepershareiscalculatedbydividingthenetincomeattributabletocommonstockholdersbytheweighted-averagenumberofcommonsharesoutstandingduringtheperiod,withoutconsiderationforcommonstockequivalents.Dilutednetincomepershareiscomputedbydividingthenetincomeattributabletocommonstockholdersbytheweighted-averagenumberofcommonshareequivalentsoutstandingfortheperioddeterminedusingthetreasury-stockmethodandtheif-convertedmethod.Forpurposesofthiscalculation,stockoptionsareconsideredtobecommonstockequivalentsandareonlyincludedinthecalculationofdilutednetincomepersharewhentheireffectisdilutive.Therewere7millionand5millionsharesexcludedfromthefiscal2020and2019dilutednetincomepersharecalculation,respectively,astheireffectwouldbeanti-dilutive.Therewerenosharesexcludedfromthefiscal2021calculation.46Thefollowingtablesanddiscussionprovideareconciliationofthenumeratoranddenominatorofthebasicanddilutednetincomepersharecomputations.(inmillions,exceptpershareamounts)202120202019NumeratorNetincomeattributabletotheCompany............................$733$559$404DenominatorWeightedaveragecommonsharesoutstanding–basic...................134.6132.6131.3Dilutiveshares...............................................3.72.53.3Weightedaveragecommonandcommonequivalentsharesoutstanding—diluted.......................................138.3135.1134.6PercommonshareincomeBasic.....................................................$5.45$4.22$3.08Diluted....................................................$5.30$4.14$3.0047ExhibitNoDescriptionofExhibit2.1Rule2.7Announcement,datedasofMarch8,2019(incorporatedbyreferencetoExhibit2.1totheCompany’sCurrentReportonForm8-KfiledonMarch14,2019).2.2Co-OperationAgreement,datedasofMarch8,2019,byandamongBerryGlobalGroup,Inc.,BerryGlobalInternationalHoldingsLimitedandRPCGroupPlc(incorporatedbyreferencetoExhibit2.2totheCompany’sCurrentReportonForm8-KfiledonMarch14,2019).3.1AmendedandRestatedCertificateofIncorporationofBerryGlobalGroup,Inc.,asamendedthroughMarch6,2019(incorporatedbyreferencetoExhibit3.1totheCompany’sQuarterlyReportonForm10-QfiledonMay2,2019).3.2CertificateofAmendmentoftheAmendedandRestatedCertificateofIncorporationofBerryGlobalGroup,Inc.,datedFebruary24,2021(incorporatedbyreferencetoExhibit3.1totheCompany’sCurrentReportonForm8-KfiledonFebruary25,2021).3.3AmendedandRestatedBylawsofBerryGlobalGroup,Inc.,asamendedandrestatedeffectiveasofFebruary24,2021(incorporatedbyreferencetoExhibit3.2totheCompany’sCurrentReportonForm8-KfiledonFebruary25,2021).4.1FormofcommonstockcertificateofBerryPlasticsGroup,Inc.(incorporatedbyreferencetoExhibit4.27ofAmendmentNo.5totheCompany’sRegistrationStatementonFormS-1filedonSeptember19,2012).4.2Indenture,byandbetweenBerryGlobalEscrowCorporationandU.S.BankNationalAssociation,asTrusteeandCollateralAgent,relatingtothe4.875%FirstPrioritySeniorSecuredNotesdue2026,datedJune5,2019(incorporatedbyreferencetoExhibit4.1totheCompany’sCurrentReportonForm8-KfiledonJune6,2019).4.2ASupplementalIndenture,amongBerryGlobalGroup,Inc.,BerryGlobal,Inc.,BerryGlobalEscrowCorporation,eachofthepartiesidentifiedasaSubsidiaryGuarantorthereon,andU.S.BankNationalAssociation,asTrustee,relatingtothe4.875%FirstPrioritySeniorSecuredNotesdue2026,datedJuly1,2019(incorporatedbyreferencetoExhibit4.1totheCompany’sCurrentReportonForm8-KfiledonJuly2,2019).4.3Indenture,byandbetweenBerryGlobalEscrowCorporationandU.S.BankNationalAssociation,asTrusteeandCollateralAgent,relatingtothe5.625%SecondPrioritySeniorSecuredNotesdue2027,datedJune5,2019(incorporatedbyreferencetoExhibit4.2totheCompany’sCurrentReportonForm8-KfiledonJune6,2019).4.3ASupplementalIndenture,amongBerryGlobalGroup,Inc.,BerryGlobal,Inc.,BerryGlobalEscrowCorporation,eachofthepartiesidentifiedasaSubsidiaryGuarantorthereon,andU.S.BankNationalAssociation,asTrustee,relatingtothe5.625%SecondPrioritySeniorSecuredNotesdue2027,datedJuly1,2019(incorporatedbyreferencetoExhibit4.2totheCompany’sCurrentReportonForm8-KfiledonJuly2,2019).4.4Indenture,amongBerryGlobal,Inc.,certainguarantorspartythereto,U.S.BankNationalAssociation,asTrusteeandCollateralAgent,andElavonFinancialServicesDAC,asPayingAgent,TransferAgentandRegistrar,relatingtothe1.00%FirstPrioritySeniorSecuredNotesdue2025and1.50%FirstPrioritySeniorSecuredNotesdue2027,datedJanuary2,2020(incorporatedbyreferencetoExhibit4.1totheCompany’sCurrentReportonForm8-KfiledonJanuary2,2020).4.5IndentureamongBerryGlobal,Inc.,certainguarantorspartythereto,U.S.BankNationalAssociation,asTrusteeandCollateralAgent,relatingtothe1.57%FirstPrioritySeniorSecuredNotesdue2026,datedDecember22,2020(incorporatedbyreferencetoExhibit4.1totheCompany’sCurrentReportonForm8-KfiledonDecember23,2020).48ExhibitNoDescriptionofExhibit4.5AFirstSupplementalIndenture,amongBerryGlobal,Inc.,certainguarantorspartythereto,U.S.BankNationalAssociation,asTrusteeandCollateralAgent,relatingtothe1.57%FirstPrioritySeniorSecuredNotesdue2026,datedMarch4,2021(incorporatedbyreferencetoExhibit4.1totheCompany’sCurrentReportonForm8-KfiledonMarch4,2021).4.6IndentureamongBerryGlobal,Inc.,certainguarantorspartythereto,U.S.BankNationalAssociation,asTrusteeandCollateralAgent,relatingtothe0.95%FirstPrioritySeniorSecuredNotesdue2024,datedJanuary15,2021(incorporatedbyreferencetoExhibit4.1totheCompany’sCurrentReportonForm8-KfiledonJanuary15,2021).4.7Indenture,amongBerryGlobal,Inc.,certainguarantorspartythereto,U.S.BankNationalAssociation,asTrusteeandCollateralAgent,relatingtothe1.65%FirstPrioritySeniorSecuredNotesdue2027,datedJune14,2021(incorporatedbyreferencetoExhibit4.1totheCompany’sCurrentReportonForm8-KfiledonJune14,2021).4.8RegistrationRightsAgreement,byandbetweenBerryGlobal,Inc.,BerryGlobalGroup,Inc.,eachsubsidiaryofBerryGlobal,Inc.identifiedtherein,andCitigroupGlobalMarketsInc.andJ.P.MorganSecuritiesLLC,onbehalfofthemselvesandasrepresentativesoftheinitialpurchasers,relatingtothe1.57%FirstPrioritySeniorSecuredNotesdue2026(incorporatedbyreferencetoExhibit4.2totheCompany’sCurrentReportonForm8-KfiledonDecember23,2020).4.9RegistrationRightsAgreement,byandbetweenBerryGlobal,Inc.,BerryGlobalGroup,Inc.,eachsubsidiaryofBerryGlobal,Inc.identifiedtherein,andCitigroupGlobalMarketsInc.andJ.P.MorganSecuritiesLLC,onbehalfofthemselvesandasrepresentativesoftheinitialpurchasers,relatingtothe0.95%FirstPrioritySeniorSecuredNotesdue2024(incorporatedbyreferencetoExhibit4.2totheCompany’sCurrentReportonForm8-KfiledonJanuary15,2021).4.10RegistrationRightsAgreement,datedMarch4,2021,byandbetweenBerryGlobal,Inc.,BerryGlobalGroup,Inc.,eachsubsidiaryofBerryGlobal,Inc.identifiedtherein,andCitigroupGlobalMarketsInc.GoldmanSachs&Co.LLCandWellsFargoSecurities,LLC,onbehalfofthemselvesandasrepresentativesoftheinitialpurchasers,relatingtothe1.57%FirstPrioritySeniorSecuredNotesdue2026(incorporatedbyreferencetoExhibit4.2totheCompany’sCurrentReportonForm8-KfiledonMarch5,2021).4.11RegistrationRightsAgreement,byandbetweenBerryGlobal,Inc.,BerryGlobalGroup,Inc.,eachsubsidiaryofBerryGlobal,Inc.identifiedtherein,andJ.P.MorganSecuritiesLLC,CitigroupGlobalMarketsInc.andGoldmanSachs&Co.LLC,onbehalfofthemselvesandasrepresentativesoftheinitialpurchasers,relatingtothe1.65%FirstPrioritySeniorSecuredNotesdue2027(incorporatedbyreferencetoExhibit4.2totheCompany’sCurrentReportonForm8-KfiledonJune14,2021).4.12DescriptionofSecurities(incorporatedbyreferencetoExhibit4.9totheCompany’sAnnualReportonForm10-KfiledonNovember11,2019).10.1$850,000,000ThirdAmendedandRestatedRevolvingCreditAgreement,datedasofMay1,2019,byandamongBerryGlobal,Inc.,BerryGlobalGroup,Inc.,thelenderspartythereto,BankofAmerica,N.A.,ascollateralagentandadministrativeagent,andthefinancialinstitutionspartythereto(incorporatedbyreferencetoExhibit10.1totheCompany’sCurrentReportonForm8-KfiledonMay6,2019).10.2U.S.$1,200,000,000SecondAmendedandRestatedCreditAgreement,datedasofApril3,2007,byandamongBerryPlasticsCorporationformerlyknownasBerryPlasticsHoldingCorporation,BerryPlasticsGroup,Inc.,CreditSuisse,CaymanIslandsBranch,ascollateralandadministrativeagent,thelenderspartytheretofromtimetotime,andtheotherfinancialinstitutionspartythereto(incorporatedbyreferencetoExhibit10.1(b)toBerryPlasticsCorporation’sCurrentReportonForm8-KfiledonApril10,2007).49ExhibitNoDescriptionofExhibit10.3SecondAmendedandRestatedIntercreditorAgreement,datedasofFebruary5,2008,byandamongBerryPlasticsGroup,Inc.,BerryPlasticsCorporation,certainsubsidiariesidentifiedaspartiesthereto,BankofAmerica,N.A.andCreditSuisse,CaymanIslandsBranchasfirstlienagents,andU.S.BankNationalAssociation,assuccessorininteresttoWellsFargoBank,N.A.,astrustee(incorporatedbyreferencetoExhibit10.3totheCompany’sAnnualReportonForm10-KfiledonNovember23,2015).10.4U.S.$1,147,500,000and$814,375,000IncrementalAssumptionAgreement,datedasofFebruary10,2017byandamongBerryPlasticsGroup,Inc.,BerryPlasticsCorporationandcertainofitssubsidiariesreferencedtherein,CreditSuisseAG,CaymanIslandsBranch,asadministrativeagentforthelendersunderthetermloancreditagreementreferencedtherein,Citibank,N.A.,asinitialTermIlenderandCitibank,N.A.,asincrementaltermJlendertherein.(incorporatedbyreferencetoExhibit10.7totheCompany’sAnnualReportonForm10-KfiledonNovember21,2017).10.5U.S.$1,644,750,000and$498,750,000IncrementalAssumptionAgreement,datedasofAugust10,2017,byandamongBerryPlasticsGroup,Inc.,BerryPlasticsCorporationandcertainofitssubsidiariesreferencedtherein,CreditSuisseAG,CaymanIslandsBranch,asadministrativeagentforthelendersunderthetermloancreditagreementreferencedtherein,WellsFargoBank,NationalAssociation,asinitialTermMlenderandWellsFargoBank,NationalAssociation,asinitialTermNlendertherein(incorporatedbyreferencetoExhibit10.8totheCompany’sAnnualReportonForm10-KfiledonNovember21,2017).10.6U.S.$900,000,000and$814,375,000IncrementalAssumptionAgreement,datedasofNovember27,2017,byandamongBerryGlobalGroup,Inc.,BerryGlobal,Inc.andcertainofitssubsidiariesreferencedtherein,CreditSuisseAG,CaymanIslandsBranch,asadministrativeagentforthelendersunderthetermloancreditagreementreferencedtherein,Citibank,N.A.,asinitialTermOLender,andCitibank,N.A.,asinitialTermPLendertherein.(incorporatedbyreferencetoExhibit10.1totheCompany’sQuarterlyReportonForm10-QfiledonFebruary7,2018).10.7U.S.$1,644,750,000and$496,250,000IncrementalAssumptionAgreementandAmendment,datedasofFebruary12,2018,byandamongBerryGlobalGroup,Inc.,BerryGlobal,Inc.andcertainofitssubsidiariesreferencedtherein,CreditSuisseAG,CaymanIslandsBranch,asadministrativeagentforthelendersunderthetermloancreditagreementreferencedtherein,Citibank,N.A.,asinitialTermQlender,andCitibank,N.A.,asinitialTermRlendertherein(incorporatedbyreferencetoExhibit10.2totheCompany’sQuarterlyReportonForm10-QfiledonMay3,2018).10.8U.S.$800,000,000and$814,375,000IncrementalAssumptionAgreement,datedasofMay16,2018,byandamongBerryGlobalGroup,Inc.,BerryGlobal,Inc.andcertainofitssubsidiariesreferencedtherein,CreditSuisseAG,CaymanIslandsBranch,asadministrativeagentforthelendersunderthetermloancreditagreementreferencedtherein,Citibank,N.A.,asinitialTermSlender,andCitibank,N.A.,asinitialTermTlendertherein(incorporatedbyreferencetoExhibit10.1totheCompany’sQuarterlyReportonForm10-QfiledonAugust3,2018).10.9IncrementalAssumptionAgreementandAmendment,amongBerryGlobalGroup,Inc.,BerryGlobal,Inc.andcertainsubsidiariesofBerryGlobal,Inc.,asLoanParties,CreditSuisseAG,CaymanIslandsBranch,asAdministrativeAgent,GoldmanSachsBankUSA,asInitialTermULender,andGoldmanSachsBankUSA,asInitialTermVLender,datedasofJuly1,2019(incorporatedbyreferencetoExhibit10.1totheCompany’sCurrentReportonForm8-KfiledonJuly2,2019).10.10AmendmentandWaivertoEquipmentLeaseAgreement,datedasofJanuary19,2011,betweenChicopee,Inc.,asLesseeandGossamerHoldings,LLC,asLessor(incorporatedbyreferencetoExhibit10.16toAVINTIVSpecialtyMaterialsInc.’sRegistrationStatementFormS-4filedonOctober25,2011).10.11SecondAmendmenttoEquipmentLeaseAgreement,datedasofOctober7,2011,betweenChicopee,Inc.,asLesseeandGossamerHoldings,LLC,asLessor(incorporatedbyreferencetoExhibit10.17toAVINTIVSpecialtyMaterialsInc.’sRegistrationStatementFormS-4filedonOctober25,2011).50ExhibitNoDescriptionofExhibit10.12ThirdAmendmenttoEquipmentLeaseAgreement,datedasofFebruary28,2012,betweenChicopee,Inc.,asLesseeandGossamerHoldings,LLC,asLessor(incorporatedbyreferencetoExhibit10.1toAVINTIVSpecialtyMaterialsInc.’sQuarterlyReportonForm10-QfiledonMay15,2012).10.13FourthAmendmenttoEquipmentLeaseAgreement,datedasofMarch22,2013,betweenChicopee,Inc.,asLesseeandGossamerHoldings,LLC,asLessor(incorporatedbyreferencetoExhibit10.1toAVINTIVSpecialtyMaterialsInc.’sQuarterlyReportonForm10-QfiledonMay9,2013).10.14†2006EquityIncentivePlan(incorporatedbyreferencetoExhibit10.9toBerryPlasticsCorporation’sRegistrationStatementFormS-4filedonNovember2,2006).10.15†AmendmentNo.2totheBerryPlasticsGroup,Inc.,2006EquityIncentivePlan(incorporatedbyreferencetoExhibit10.9totheCompany’sAnnualReportonForm10-KfiledonDecember11,2013).10.16†AmendmentNo.3toBerryPlasticsGroup,Inc.2006EquityIncentivePlan(incorporatedbyreferencetoExhibit10.1totheCompany’sCurrentReportonForm8-KfiledonMarch10,2015).10.17†Formof2016OmnibusAmendmenttoAwardsGrantedUndertheBerryPlasticsGroup,Inc.2006EquityIncentivePlan(incorporatedbyreferencetoExhibit10.2totheCompany’sCurrentReportonForm8-KfiledonJuly22,2016).10.18†OmnibusamendmenttoawardsgrantedundertheBerryPlasticsGroup,Inc.,2006Long-TermIncentivePlan(incorporatedbyreferencetoExhibit10.10totheCompany’sAnnualReportonForm10-KfiledonDecember11,2013).10.19†FormofPerformance-BasedStockOptionAgreementofBerryPlasticsGroup,Inc.(incorporatedbyreferencetoExhibit10.9toBerryPlasticsCorporation’sRegistrationStatementFormS-4filedonNovember2,2006).10.20†FormofAccretingStockOptionAgreementofBerryPlasticsGroup,Inc.(incorporatedbyreferencetoExhibit10.10toBerryPlasticsCorporation’sRegistrationStatementFormS-4filedonNovember2,2006).10.21†FormofTime-BasedStockOptionAgreementofBerryPlasticsGroup,Inc.(incorporatedbyreferencetoExhibit10.11toBerryPlasticsCorporation’sRegistrationStatementFormS-4filedonNovember2,2006).10.22†FormofPerformance-BasedStockAppreciationRightsAgreementofBerryPlasticsGroup,Inc.(incorporatedbyreferencetoExhibit10.12toBerryPlasticsCorporation’sRegistrationStatementFormS-4filedonNovember2,2006).10.23†EmploymentAgreementofThomasE.Salmon(incorporatedbyreferencetoExhibit10.1totheCompany’sCurrentReportonForm8-KfiledonFebruary6,2017).10.24†BerryPlasticsGroup,Inc.ExecutiveBonusPlan,amendedandrestatedDecember22,2015,effectiveasofSeptember27,2015(incorporatedbyreferencetoExhibit10.1totheCompany’sCurrentReportonForm8-KfiledonDecember28,2015).10.25†BerryPlasticsGroup,Inc.2012Long-TermIncentivePlan(incorporatedbyreferencetoExhibit10.27totheCompany’sAnnualReportonForm10-KfiledonDecember17,2012).10.26†AmendmentNo.1totheBerryPlasticsGroup,Inc.,2012Long-TermIncentivePlan(incorporatedbyreferencetoExhibit10.31totheCompany’sAnnualReportonForm10-KfiledonDecember11,2013).10.27†OmnibusamendmenttoawardsgrantedundertheBerryPlasticsGroup,Inc.,2012Long-TermIncentivePlan(incorporatedbyreferencetoExhibit10.32totheCompany’sAnnualReportonForm10-KfiledonDecember11,2013).51ExhibitNoDescriptionofExhibit10.28†AmendmentNo.2totheBerryPlasticsGroup,Inc.2012Long-TermIncentivePlan(incorporatedbyreferencetoExhibit10.2totheCompany’sCurrentReportonForm8-KfiledonMarch10,2015).10.29†Formof2016OmnibusAmendmenttoAwardsGrantedUndertheBerryPlasticsGroup,Inc.2012Long-TermIncentivePlan(incorporatedbyreferencetoExhibit10.3totheCompany’sCurrentReportonForm8-KfiledonJuly22,2016).10.30†2015BerryPlasticsGroup,Inc.Long-TermIncentivePlan(incorporatedbyreferencetoExhibit10.3totheCompany’sCurrentReportonForm8-KfiledonMarch10,2015).10.31†FirstAmendmentto2015BerryPlasticsGroup,Inc.Long-TermIncentivePlan(incorporatedbyreferencetoExhibit10.1totheCompany’sCurrentReportonForm8-KfiledonMarch6,2018).10.32†Formof2016OmnibusAmendmenttoAwardsGrantedUndertheBerryPlasticsGroup,Inc.2015Long-TermIncentivePlan(incorporatedbyreferencetoExhibit10.4totheCompany’sCurrentReportonForm8-KfiledonJuly22,2016).10.33†FourthAmendedandRestatedStockholdersAgreement,byandamongBerryPlasticsGroup,Inc.,andthestockholdersoftheCorporationlistedonscheduleAthereto,datedasofJanuary15,2015(incorporatedbyreferencetoExhibit10.1totheCompany’sQuarterlyReportonForm10-QfiledonJanuary30,2015).10.34†EmploymentAgreement,datedJanuary1,2002,betweentheBerryPlasticsCorporationandCurtisBegle(incorporatedbyreferencetoExhibit10.1totheCompany’sQuarterlyReportonForm10-QfiledonJanuary31,2014).10.35†AmendmentNo.1toEmploymentAgreement,datedasofSeptember13,2006,byandbetweentheBerryPlasticsCorporationandCurtisBegle(incorporatedbyreferencetoExhibit10.3totheCompany’sQuarterlyReportonForm10-QfiledonJanuary31,2014).10.36†AmendmentNo.2toEmploymentAgreement,datedDecember31,2008,byandbetweentheBerryPlasticsCorporationandCurtisBegle(incorporatedbyreferencetoExhibit10.4totheCompany’sQuarterlyReportonForm10-QfiledonJanuary31,2014).10.37†AmendmentNo.3toEmploymentAgreement,datedAugust1,2010,byandbetweentheBerryPlasticsCorporationandCurtisL.Begle(incorporatedbyreferencetoExhibit10.5totheCompany’sQuarterlyReportonForm10-QfiledonJanuary31,2014).10.38†AmendmentNo.4toEmploymentAgreement,datedDecember16,2011,byandbetweentheBerryPlasticsCorporationandCurtisL.Begle(incorporatedbyreferencetoExhibit10.6totheCompany’sQuarterlyReportonForm10-QfiledonJanuary31,2014).10.39†EmploymentAgreement,datedFebruary28,1998,betweenBerryPlasticsCorporationandMarkMiles,togetherwithamendmentsdatedFebruary28,2003,September13,2006,December31,2008,andDecember31,2011(incorporatedbyreferencetoExhibit10.40totheCompany’sAnnualReportonForm10-KfiledonNovember30,2016).10.40†FormofAmendmenttoEmploymentAgreementbyandbetweenBerryPlasticsCorporationandeachofCurtisLBegle,MarkW.Miles,andThomasE.Salmon(incorporatedbyreferencetoExhibit10.1totheCompany’sCurrentReportonForm8-KfiledonJuly22,2016).10.41†SeniorExecutiveEmploymentContractdatedasofSeptember30,2015byandbetweenPGISpecialtyMaterialsInc.andJeanMarcGalvez,togetherwiththeInternationalAssignmentLetterdatedDecember18,2016fromBerryGlobal,Inc.(f/k/aBerryPlasticsCorporation)(incorporatedbyreferencetoExhibit10.2totheCompany’sQuarterlyReportonForm10-QfiledonFebruary7,2018).52ExhibitNoDescriptionofExhibit10.42†EmploymentAgreement,datedDecember16,2010,betweenBerryPlasticsCorporationandJasonGreene,togetherwithamendmentsdatedDecember31,2011andJuly20,2016(incorporatedbyreferencetoExhibit10.43totheCompany’sAnnualReportonForm10-KfiledonNovember23,2020).10.43†AmendedandRestatedBerryGlobalGroup,Inc.2015Long-TermIncentivePlan,effectiveFebruary24,2021(incorporatedbyreferencetoExhibit10.1totheCompany’sCurrentReportonForm8-KfiledonFebruary25,2021).10.44†FormofEmployeeNon-QualifiedStockOptionAwardAgreement(incorporatedbyreferencetoExhibit10.1totheCompany’sCurrentReportonForm8-KfiledonNovember30,2020).10.45†FormofEmployeePerformance-BasedStockUnitAwardAgreement(incorporatedbyreferencetoExhibit10.2totheCompany’sCurrentReportonForm8-KfiledonNovember30,2020).10.46†FormofDirectorNon-QualifiedStockOptionAwardAgreement(incorporatedbyreferencetoExhibit10.3totheCompany’sCurrentReportonForm8-KfiledonNovember30,2020).21.1*SubsidiariesoftheRegistrant.22.1*ListofSubsidiaryGuarantors.23.1*ConsentofIndependentRegisteredPublicAccountingFirm.31.1*Rule13a-14(a)/15d-14(a)CertificationoftheChiefExecutiveOfficer.31.2*Rule13a-14(a)/15d-14(a)CertificationoftheChiefFinancialOfficer.32.1*Section1350CertificationoftheChiefExecutiveOfficer.32.2*Section1350CertificationoftheChiefFinancialOfficer.101.INSInlineXBRLInstanceDocument(theinstancedocumentdoesnotappearintheInteractiveDataFilebecauseitsXBRLtagsareembeddedwithintheInlineXBRLdocument).101.SCHInlineXBRLTaxonomyExtensionSchemaDocument.101.CALInlineXBRLTaxonomyExtensionCalculationLinkbaseDocument.101.DEFInlineXBRLTaxonomyExtensionDefinitionLinkbaseDocument.101.LABInlineXBRLTaxonomyExtensionLabelLinkbaseDocument.101.PREInlineXBRLTaxonomyExtensionPresentationLinkbaseDocument.104CoverPageInteractiveDateFile(formattedasInlineXBRLandcontainedinExhibit101.)*Filedorfurnishedherewith,asapplicable.†Managementcontractorcompensatoryplanorarrangement.53SIGNATURESPursuanttotherequirementsofSection13or15(d)oftheSecuritiesExchangeActof1934,theregistranthasdulycausedthisreporttobesignedonitsbehalfbytheundersigned,thereuntodulyauthorized,onthe18thdayofNovember,2021.BERRYGLOBALGROUP,INC.By/s/ThomasE.SalmonThomasE.SalmonChiefExecutiveOfficerPursuanttotherequirementsoftheSecuritiesExchangeActof1934,thisreporthasbeensignedbythefollowingpersonsonbehalfoftheregistrantandinthecapacitiesandonthedatesindicated:SignatureTitleDate/s/ThomasE.SalmonThomasE.SalmonChiefExecutiveOfficerandChairmanoftheBoardofDirectorsandDirector(PrincipalExecutiveOfficer)November18,2021/s/MarkW.MilesMarkW.MilesChiefFinancialOfficer(PrincipalFinancialOfficer)November18,2021/s/JamesM.TillJamesM.TillExecutiveVicePresidentandController(PrincipalAccountingOfficer)November18,2021/s/B.EvanBayhB.EvanBayhDirectorNovember18,2021/s/JonathanF.FosterJonathanF.FosterDirectorNovember18,2021/s/IdaleneF.KesnerIdaleneF.KesnerDirectorNovember18,2021/s/JillA.RahmanJillA.RahmanDirectorNovember18,2021/s/CarlJ.RickertsenCarlJ.RickertsenDirectorNovember18,2021/s/PaulaSneedPaulaSneedDirectorNovember18,2021/s/RobertA.SteeleRobertA.SteeleDirectorNovember18,2021/s/StephenE.SterrettStephenE.SterrettDirectorNovember18,2021/s/ScottB.UllemScottB.UllemDirectorNovember18,202154(This page is intentionally left blank)(This page is intentionally left blank)(This page is intentionally left blank)NON-GAAP FINANCIAL MEASURES**Measurements are in millionsOperating EBITDA and adjusted free cash f low, as presented in this document, are supplemental financial measures that are not required by, or presented in accordance with, generally accepted accounting principles in the United States (“GAAP”). Reconciliations of such measures to GAAP financial measures are provided below. Investors are urged to consider carefully the comparable GAAP measures and the reconciliations to those measures provided. For further information, see the accompanying Form 10-K.FISCAL20172018201920202021U.S. GAAP Operating income$732 $761 $974 $1,179 $1,292 Add: depreciation and amortization521538613845854 Add: restructuring and impairment2436 (126) 79 51 Add: business optimization and other expense504569 54 27 Operating EBITDA$1,327 $1,380 $1,530 $2,157 $2,224 FISCAL20172018201920202021Cash flow from operating activities$975 $1,004 $1,201 $1,530$1,580 Additions to property, plant, and equipment, net(263)(333)(399)(583)(676)Tax receivable agreement payment(111)(37)(38)––Free cash flow$601 $634 $764 $947 $904 For a full report, visit ir.berryglobal.com.Stockholder InformationCorporate HeadquartersBerry Global Group, Inc. 101 Oakley Street Evansville, Indiana 47710 812.424.2904 berryglobal.comInvestor Relations Contact Dustin Stilwell 812.306.2964 ir@berryglobal.comAnnual Meeting of ShareholdersFebruary 16, 2022, at 10:00 a.m. Central Time, Bally’s Evansville Executive Conference Center—Room Walnut D 450 NW Riverside Dr., Evansville, Indiana 47708Registrar and Transfer AgentComputershare P.O. Box 505000 Louisville, KY 40233 800.962.4284Independent Registered Public Accounting FirmErnst & Young LLPAdditional InformationYou can access ﬁnancial and other information about Berry Global Group, Inc. at ir.berryglobal.com, including press releases, Forms 10-K, 10-Q, and 8-K as ﬁled with the Securities and Exchange Commission; and information on Corporate Governance such as charters of Board Committees, our Global Code of Business Ethics and Corporate Governance Guidelines. You can also request that any of these materials be mailed to you at no charge by writing us at the address above.1.877.662.3779 | berryglobal.comINNOVATION FOR THE WORLDSOLUTIONS FOR YOU

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