UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549

FORM 10-Q

☒QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended April 2, 20221, 2023

OR

☐TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF SECURITIES EXCHANGE ACT OF 1934

For the transition period from __________ to __________

Commission File Number 001-35672
graphic

BERRY GLOBAL GROUP, INC.

A Delaware corporation
 101 Oakley Street, Evansville, Indiana, 47710
(812) 424-2904
 IRS employer identification number
20-5234618

Securities registered pursuant to Section 12(b) of the Exchange Act:

Title of each classTrading Symbol(s)Name of each exchange on which registered
Common Stock, $0.01 par value per shareBERYNew York Stock Exchange LLC

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.  Yes ☒  No ☐

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files).   Yes ☒ No  ☐

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company.  See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and “emerging growth company” in Rule 12b-2 of the Exchange Act.

Large Accelerated Filer ☒
Accelerated Filer ☐
Non-Accelerated Filer ☐
Smaller Reporting Company ☐
Emerging Growth Company ☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act.  ☐

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes  ☐ No  ☒

There were 130.3119.2 million shares of common stock outstanding at May 5, 2022.4, 2023.



CAUTIONARY STATEMENT CONCERNING FORWARD-LOOKING STATEMENTS

Information included or incorporated by reference in Berry Global Group, Inc.’s filings with the U.S. Securities and Exchange Commission (the “SEC”) and press releases or other public statements contains or may contain forward-looking statements.  This report includes “forward-looking” statements with respect to our financial condition, results of operations and business and our expectations or beliefs concerning future events.  These statements contain words such as “believes,” “expects,” “may,” “will,” “should,” “would,” “could,” “seeks,” “approximately,” “intends,” “plans,” “estimates,” “project,” “outlook,” “anticipates” or “looking forward” or similar expressions that relate to our strategy, plans, intentions, or expectations.  All statements we make relating to our estimated and projected earnings, margins, costs, expenditures, cash flows, growth rates, and financial results or to our expectations regarding future industry trends are forward-looking statements.  In addition, we, through our senior management, from time to time make forward-looking public statements concerning our expected future operations and performance and other developments.  These forward-looking statements are subject to risks and uncertainties that may change at any time, and, therefore, our actual results may differ materially from those that we expected.  All forward-looking statements are made only as of the date hereof, and we undertake no obligation to publicly update or revise any forward-looking statement as a result of new information, future events or otherwise, except as otherwise required by law.

Additionally, we caution readers that the list of important factors discussed in our most recent Form 10-K in the section titled “Risk Factors” and subsequent periodic reports filed with the SEC may not contain all of the material factors that are important to you.  In addition, in light of these risks and uncertainties, the matters referred to in the forward-looking statements contained in this report may not in fact occur.  Accordingly, readers should not place undue reliance on those statements.

2

Berry Global Group, Inc.
Form 10-Q Index
For Quarterly Period Ended April 2, 20221, 2023

Part I.Financial InformationPage No.
 Item 1.Financial Statements: 
  
Consolidated Statements of Income and Comprehensive Income
4
  
Consolidated Balance Sheets
5
  
Consolidated Statements of Changes in Stockholders’ EquityCash Flows
6
  
Consolidated Statements of Cash FlowsChanges in Stockholders’ Equity
7
  
Notes to Consolidated Financial Statements
8
 Item 2.
Management’s Discussion and Analysis of Financial Condition and Results of Operations
15
 Item 3.
Quantitative and Qualitative Disclosures about Market Risk
2221
 Item 4.
Controls and Procedures
2321
Part II.Other Information 
 Item 1.
Legal Proceedings
2422
 Item 1A.
Risk Factors
2422
 Item 2.
Unregistered Sales of Equity Securities and Use of Proceeds
2422
 Item 6.
Exhibits
2523
 
Signature
2624


3
Index

Part I. Financial Information

Item 1.Financial Statements
Berry Global Group, Inc.
Consolidated Statements of Income
(Unaudited)
(in millions of dollars, except per share amounts)

 Quarterly Period Ended  Two Quarterly Periods Ended  Quarterly Period Ended  Two Quarterly Periods Ended 
 April 2, 2022  April 3, 2021  April 2, 2022  April 3, 2021  April 1, 2023  April 2, 2022  April 1, 2023  April 2, 2022 
Net sales $3,775  $3,370  $7,348  $6,506  $3,288  $3,775  $6,348  $7,348 
Costs and expenses:                                
Cost of goods sold  3,154   2,706   6,192   5,224   2,682   3,154   5,224   6,192 
Selling, general and administrative  207   220   442   461   220   207   456   442 
Amortization of intangibles  65   73   133   147   60   65   120   133 
Restructuring and transaction activities  8   38   11   37   25   8   37   11 
Operating income  341   333   570   637   301   341   511   570 
Other expense  6   6   6   31   1   6   2   6 
Interest expense  71   84   142   181   79   71   150   142 
Income before income taxes  264   243   422   425   221   264   359   422 
Income tax expense  59   62   96   114   47   59   79   96 
Net income $205  $181  $326  $311  $174  $205  $280  $326 
                                
Net income per share:                                
Basic $1.53  $1.35  $2.42  $2.32  $1.44  $1.53  $2.29  $2.42 
Diluted  1.50   1.32   2.36   2.28   1.42   1.50   2.27   2.36 






Consolidated Statements of Comprehensive Income
(Unaudited)
(in millions of dollars)

 Quarterly Period Ended  Two Quarterly Periods Ended  Quarterly Period Ended  Two Quarterly Periods Ended 
 April 2, 2022  April 3, 2021  April 2, 2022  April 3, 2021  April 1, 2023  April 2, 2022  April 1, 2023  April 2, 2022 
Net income $205  $181  $326  $311  $174  $205  $280  $326 
Other comprehensive income, net of tax:                                
Currency translation  37   (73)  15   105   60   37   201   15 
Derivative instruments  71   54   100   71   (31)  71   (32)  100 
Other comprehensive income (loss)  108   (19)  115   176 
Other comprehensive income  29   108   169   115 
Comprehensive income $313  $162  $441  $487  $203  $313  $449  $441 

See notes to consolidated financial statements.

4
Index

Berry Global Group, Inc.
Consolidated Balance Sheets
(in millions of dollars)

 April 2, 2022  October 2, 2021  April 1, 2023  October 1, 2022 
 (Unaudited)     (Unaudited)    
Assets            
Current assets:            
Cash and cash equivalents $622  $1,091  $696  $1,410 
Accounts receivable  1,996   1,879   1,751   1,777 
Finished goods  1,032   960   1,128   1,010 
Raw materials and supplies  932   947   736   792 
Prepaid expenses and other current assets  401   217   220   175 
Total current assets  4,983   5,094   4,531   5,164 
Noncurrent assets:                
Property, plant and equipment  4,650   4,677   4,612   4,342 
Goodwill and intangible assets  7,183   7,434   6,866   6,685 
Right-of-use assets  536   562   507   521 
Other assets  183   115   97   244 
Total assets
 $17,535  $17,882  $16,613  $16,956 
                
                
Liabilities and stockholders’ equity                
Current liabilities:                
Accounts payable $1,651  $2,041  $1,350  $1,795 
Accrued employee costs  250   336   243   253 
Other current liabilities  824   788   715   783 
Current portion of long-term debt  19   21   12   13 
Total current liabilities  2,744   3,186   2,320   2,844 
Noncurrent liabilities:                
Long-term debt  9,627   9,439   9,295   9,242 
Deferred income taxes  569   568   575   707 
Employee benefit obligations  244   276   162   160 
Operating lease liabilities  443   466   414   429 
Other long-term liabilities  588   767   552   378 
Total liabilities  14,215   14,702   13,318   13,760 
                
Stockholders’ equity:                
Common stock (130.4 and 135.5 million shares issued, respectively)  1   1 
Common stock (119.2 and 124.2 million shares issued, respectively)  1   1 
Additional paid-in capital  1,174   1,134   1,214   1,177 
Retained earnings  2,326   2,341   2,314   2,421 
Accumulated other comprehensive loss  (181)  (296)  (234)  (403)
Total stockholders’ equity  3,320   3,180   3,295   3,196 
Total liabilities and stockholders’ equity $17,535  $17,882  $16,613  $16,956 

See notes to consolidated financial statements.

5
Index

Berry Global Group, Inc.
Consolidated Statements of Cash Flows
(Unaudited)
(in millions of dollars)

  Two Quarterly Periods Ended 
  April 1, 2023  April 2, 2022 
Cash Flows from Operating Activities:      
Net income 
$
280  $326 
Adjustments to reconcile net cash from operating activities:        
Depreciation  279   284 
Amortization of intangibles  120   133 
Non-cash interest (income) expense, net  (27)  8 
Settlement of derivatives  36   — 
Deferred income tax  (51)  (43)
Share-based compensation expense  30   28 
Other non-cash operating activities, net  8   (14)
Changes in working capital  (495)  (714)
Changes in other assets and liabilities  (12)  (22)
Net cash from operating activities  168   (14)
         
Cash Flows from Investing Activities:        
Additions to property, plant and equipment, net  (385)  (367)
Acquisition of a business and other  (88)  3 
Net cash from investing activities  (473)  (364)
         
Cash Flows from Financing Activities:        
Proceeds from long-term borrowings  500   244 
Repayments on long-term borrowings  (583)  (9)
Proceeds from issuance of common stock  18   22 
Repurchase of common stock  (333)  (351)
Dividends paid  (65)  — 
Other, net  11   — 
Net cash from financing activities  (452)  (94)
Effect of currency translation on cash  43   3 
Net change in cash and cash equivalents  (714)  (469)
Cash and cash equivalents at beginning of period  1,410   1,091 
Cash and cash equivalents at end of period $696  $622 

See notes to consolidated financial statements.

6
Index

Berry Global Group, Inc.
Consolidated Statements of Changes in Stockholders’ Equity
(Unaudited)
(in millions of dollars)

Quarterly Period Ended
 
Common
Stock
  
Additional
Paid-in Capital
  
Accumulated Other
Comprehensive Loss
  
Retained
Earnings
  Total  
Common
Stock
  
Additional
Paid-in Capital
  
Accumulated Other
Comprehensive Loss
  
Retained
Earnings
  Total 
Balance at December 31, 2022 $1  $1,199  $(263) $2,322  $3,259 
Net income  —   —   —   174   174 
Other comprehensive income  —   —   29   —   29 
Share-based compensation  —   7   —   —   7 
Proceeds from issuance of common stock  —   13   —   —   13 
Common stock repurchased and retired  —   (5)  —   (150)  (155)
Dividends paid  —   —   —   (32)  (32)
Balance at April 1, 2023 $1  $1,214  $(234) $2,314  $3,295 
                    
Balance at January 1, 2022 $1  $1,170  $(289) $2,412  $3,294  $1  $1,170  $(289) $2,412  $3,294 
Net income  0   0   0   205   205   —   —   —   205   205 
Other comprehensive income  0   0   108   0   108   —   —   108   —   108 
Share-based compensation  0   7   0   0   7   —   7   —   —   7 
Proceeds from issuance of common stock  0   6   0   0   6   —   6   —   —   6 
Common stock repurchased and retired  0   (9)  0   (291)  (300)  —   (9)  —   (291)  (300)
Balance at April 2, 2022 $1  $1,174  $(181) $2,326  $3,320  $1  $1,174  $(181) $2,326  $3,320 
                    
Balance at January 2, 2021 $1  $1,062  $(356) $1,738  $2,445 
Net income  0   0   0   181   181 
Other comprehensive loss  0   0   (19)  0   (19)
Share-based compensation  0   7   0   0   7 
Proceeds from issuance of common stock  0   32   0   0   32 
Balance at April 3, 2021 $1  $1,101  $(375) $1,919  $2,646 

Two Quarterly Periods Ended
 
Common
Stock
  
Additional
Paid-in Capital
  
Accumulated Other
Comprehensive Loss
  
Retained
Earnings
  Total  
Common
Stock
  
Additional
Paid-in Capital
  
Accumulated Other
Comprehensive Loss
  
Retained
Earnings
  Total 
Balance at October 1, 2022 $1  $1,177  $(403) $2,421  $3,196 
Net income  —   —   —   280   280 
Other comprehensive income  —   —   169   —   169 
Share-based compensation  —   30   —   —   30 
Proceeds from issuance of common stock  —   18   —   —   18 
Common stock repurchased and retired  —   (11)  —   (322)  (333)
Dividends paid  —   —   —   (65)  (65)
Balance at April 1, 2023 $1  $1,214  $(234) $2,314  $3,295 
                    
Balance at October 2, 2021 $1  $1,134  $(296) $2,341  $3,180  $1  $1,134  $(296) $2,341  $3,180 
Net income  0   0   0   326   326   —   —   —   326   326 
Other comprehensive income  0   0   115   0   115   —   —   115   —   115 
Share-based compensation  0   28   0   0   28   —   28   —   —   28 
Proceeds from issuance of common stock  0   22   0   0   22   —   22   —   —   22 
Common stock repurchased and retired  0   (10)  0   (341)  (351)  —   (10)  —   (341)  (351)
Balance at April 2, 2022 $1  $1,174  $(181) $2,326  $3,320  $1  $1,174  $(181) $2,326  $3,320 
                    
Balance at September 26, 2020 $1  $1,034  $(551) $1,608  $2,092 
Net income  0   0   0   311   311 
Other comprehensive income  0   0   176   0   176 
Share-based compensation  0   28   0   0   28 
Proceeds from issuance of common stock  0   39   0   0   39 
Balance at April 3, 2021 $1  $1,101  $(375) $1,919  $2,646 


See notes to consolidated financial statements.

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Index

Berry Global Group, Inc.
Consolidated Statements of Cash Flows
(Unaudited)
(in millions of dollars)

  Two Quarterly Periods Ended 
  April 2, 2022  April 3, 2021 
Cash Flows from Operating Activities:      
Net income 
$
326  $311 
Adjustments to reconcile net cash from operating activities:        
Depreciation  284   280 
Amortization of intangibles  133   147 
Non-cash interest expense  8   16 
Deferred income tax  (43)  (28)
Share-based compensation expense  28   28 
Other non-cash operating activities, net  (14)  51 
Changes in working capital  (714)  (156)
Changes in other assets and liabilities  (22)  (11)
Net cash from operating activities  (14)  638 
         
Cash Flows from Investing Activities:        
Additions to property, plant and equipment, net  (367)  (364)
Divestiture of business  3   143 
Net cash from investing activities  (364)  (221)
         
Cash Flows from Financing Activities:        
Proceeds from long-term borrowings  244   2,316 
Repayments on long-term borrowings  (9)  (2,683)
Proceeds from issuance of common stock  22   39 
Repurchase of common stock  (351)  0 
Debt financing costs  0   (16)
Net cash from financing activities  (94)  (344)
Effect of currency translation on cash  3   20 
Net change in cash and cash equivalents  (469)  93 
Cash and cash equivalents at beginning of period  1,091   750 
Cash and cash equivalents at end of period $622  $843 

See notes to consolidated financial statements.

7
Index

Berry Global Group, Inc.
Notes to Consolidated Financial Statements
(Unaudited)
(tables in millions of dollars, except per share data)


1.  Basis of Presentation

The accompanying unaudited Condensed Consolidated Financial Statements of Berry Global Group, Inc. (“the Company,” “we,” or “Berry”) have been prepared in accordance with accounting principles generally accepted in the United States (“GAAP”) pursuant to the rules and regulations of the Securities and Exchange Commission (the "SEC") for interim reporting.  Accordingly, they do not include all of the information and footnotes required by GAAP for complete financial statements.  In preparing financial statements in conformity with GAAP, we must make estimates and assumptions that affect the reported amounts and disclosures at the date of the financial statements and during the reporting period.  Actual results could differ from those estimates.  The Company’s U.S. based results for fiscal 2022 and fiscal 2021 are based on a fifty-two and fifty-three week period, respectively.  The extra week in fiscal 2021 occurred in the first quarter.In the opinion of management, all adjustments (consisting of normal recurring adjustments) considered necessary for a fair presentation have been included, and all subsequent events up to the time of the filing have been evaluated.  For further information, refer to the Company’s most recent Form 10-K filed with the Securities and Exchange Commission.SEC.


2.  Critical Accounting Policies and Recent Accounting Pronouncements

There have been no material changes in critical accounting policies from those described in our most recent Form 10-K.

Reference Rate Reform

In 2020, the FASB issued ASU 2020-04, Reference Rate Reform - Facilitation of the Effects of Reference Rate Reform on Financial Reporting (Topic 848).  This standard provides temporary optional expedients and exceptions to the GAAP guidance on contract modifications and hedge accounting to ease the financial reporting burdens of the expected market transition from LIBOR and other interbank offered rates to alternative reference rates, such as SOFR.  In 2022, the FASB issued ASU 2020-04 is effective upon issuance and generally can be applied through2022-06, which deferred the endsunset date of calendar year 2022.Topic 848 to December 31, 2024.  The Company is currently evaluating the impact and whether it planstiming of adoption, but does not expect a material change to adopt the optional expedients and exceptions provided under this new standard.our consolidated financial statements or disclosures. 

3.  Revenue and Accounts Receivable


Our revenues are primarily derived from the sale of non-woven, flexible and rigid products to customers.  Revenue is recognized when performance obligations are satisfied, in an amount reflecting the consideration to which the Company expects to be entitled.  We consider the promise to transfer products to be our sole performance obligation.  If the consideration agreed to in a contract includes a variable amount, we estimate the amount of consideration we expect to be entitled to in exchange for transferring the promised goods to the customer using the most likely amount method.  Our main source of variable consideration is customer rebates.  There are no material instances where variable consideration is constrained and not recorded at the initial time of sale.  Generally, our revenue is recognized at a point in time for standard promised goods at the time of shipment, when title and risk of loss pass to the customer.  The accrual for customer rebates was $101$95 million and $104$103 million at April 2, 20221, 2023 and October 2, 2021,1, 2022, respectively, and is included in Other current liabilities on the Consolidated Balance Sheets.  The Company disaggregates revenue based on reportable business segment, geography, and significant product line.  Refer to Note 10. Segment and Geographic Data for further information.


Accounts receivable are presented net of allowance for credit losses of $19$18 million and $21$18 million at April 2, 20221, 2023 and October 2, 2021,1, 2022, respectively.  The Company records its current expected credit losses based on a variety of factors including historical loss experience and current customer financial condition.  The changes to our current expected credit losses, write-off activity, and recoveries were not material for any of the periods presented.


The Company has entered into various factoring agreements, including customer-based supply chain financing programs, to sell certain receivables to third-party financial institutions.  Agreements which result in true sales of the transferred receivables, which occur when receivables are transferred without recourse to the Company, are reflected as a reduction of accounts receivable on the consolidated balance sheets and the proceeds are included in the cash flows from operating activities in the consolidated statements of cash flows.  The fees associated with the transfer of receivables for all programs were not material for any of the periods presented.

8
Index

4.  Acquisition


4.  DispositionPro-Western Plastics

During fiscal 2022,In March 2023, the Company reached an initial agreement to sell our rotoacquired Pro-Western Plastics Ltd. (“Pro-Western”), a leading plastics injection molding company, for a purchase price of $88 million.  The acquired business which iswill be operated inwithin the Consumer Packaging International segmentNorth America segment.  To finance the purchase, the Company used existing liquidity.  The acquisition has been accounted for expected proceedsunder the purchase method of $114 million, which is preliminaryaccounting and subject to adjustment at closing.  The Company reported fiscal 2021 net sales of $146 million relatedaccordingly, the purchase price has been allocated to the business.  For the period ended April 2, 2022, the Company classified assets of $156 million and liabilities of $49 million as held for sale.  Theidentifiable assets and liabilities heldbased on preliminary values at the acquisition date.  The Company has recognized $35 million of goodwill on this transaction primarily as a result of expected cost synergies and expects goodwill to be deductible for sale are recorded in Prepaid expenses and other current assets, and Other current liabilities, respectively, on the Consolidated Balance Sheets. tax purposes.

5.  Restructuring and Transaction Activities

The table below includes the significant components of our restructuring and transaction activities, by reporting segment:

 Quarterly Period Ended  Two Quarterly Periods Ended  Quarterly Period Ended  Two Quarterly Periods Ended 
 April 2, 2022  April 3, 2021  April 2, 2022  April 3, 2021  April 1, 2023  April 2, 2022  April 1, 2023  April 2, 2022 
Consumer Packaging International $5  $38  $7  $41  $12  $5  $15  $7 
Consumer Packaging North America  2   0   3   1   7   2   8   3 
Health, Hygiene & Specialties  0   0   (1)  0   5   —   8   (1)
Engineered Materials  1   0   2   (5)  1   1   6   2 
Consolidated $8  $38  $11  $37  $25  $8  $37  $11 

The table below sets forth the activity with respect to the restructuring and transaction activities accrual at April 2, 2022:1, 2023:

 Restructuring        Restructuring       
 
Employee Severance
and Benefits
  
Facility
Exit Costs
  
Transaction
Activities
  Total  
Employee
Severance
and Benefits
  
Facility
Exit Costs
  
Non-cash
Impairment
Charges
  
Transaction
Activities
  Total 
Balance as of October 2, 2021 $6  $5  $0  $11 
Balance as of October 1, 2022 $2  $3  $—  $—  $5 
Charges  3   6   2   11   16   8   4   9   37 
Non-cash items  —   —   (4)  —   (4)
Cash  (3)  (7)  (2)  (12)  (5)  (9)  —   (9)  (23)
Balance as of April 2, 2022 $6  $4  $0  $10 
Balance as of April 1, 2023 $13  $2  $—  $—  $15 

6.  Leases

The Company leases certain manufacturing facilities, warehouses, office space, manufacturing equipment, office equipment, and automobiles.

We recognize right-of-use assets and lease liabilities for leases with original lease terms greater than one year based on the present value of lease payments over the lease term using our incremental borrowing rate on a collateralized basis.  Short-term leases, with original lease terms of less than one year, are not recognized on the balance sheet.  We are party to certain leases, namely for manufacturing facilities, which offer renewal options to extend the original lease term.  Renewal options are included in the right-of-use asset and lease liability based on our assessment of the probability that the options will be exercised.

Supplemental lease information is as follows:

LeasesClassification April 2, 2022  October 2, 2021 Classification April 1, 2023  October 1, 2022 
Operating leases:              
Operating lease right-of-use assets
Right-of-use assets
 $536  $562 
Right-of-use assets
 $507  $521 
Current operating lease liabilities
Other current liabilities
  110   113 
Other current liabilities
  109   108 
Noncurrent operating lease liabilities
Operating lease liability
  443   466 
Operating lease liability
  414   429 
Finance leases:                  
Finance lease right-of-use assets
Property, plant, and equipment, net
 $47  $57 
Property, plant, and equipment, net
 $34  $38 
Current finance lease liability
Current portion of long-term debt
  13   14 
Current portion of long-term debt
  9   9 
Noncurrent finance lease liabilities
Long-term debt, less current portion
  30   38 
Long-term debt, less current portion
  21   24 

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     Two Quarterly Periods Ended 
Lease TypeCash Flow Classification Lease Expense Category  April 2, 2022  April 3, 2021 
OperatingOperating Lease cost  $62  $57 
FinanceOperating Interest expense   1   1 
FinanceFinancing -   9   16 
Finance- Amortization of right-of-use assets   5   7 

Right-of-use assets obtained in exchange for new operating lease liabilities were $9 million and $21 million for the quarterly and two quarterly periods ended April 2, 2022, respectively.

7.  Long-Term Debt

Long-term debt consists of the following:

FacilityMaturity Date April 2, 2022  October 2, 2021 Maturity Date April 1, 2023  October 1, 2022 
Term loan(a)July 2026 $3,440   3,440 July 2026 $3,390   3,440 
Revolving line of creditMay 2024  244   0 May 2024  —   — 
0.95% First Priority Senior Secured Notes(b)
February 2024  800   800 February 2024  279   800 
1.00% First Priority Senior Secured Notes (a)(c)
July 2025  776   810 July 2025  761   686 
1.57% First Priority Senior Secured Notes
January 2026  1,525   1,525 January 2026  1,525   1,525 
4.875% First Priority Senior Secured Notes
July 2026  1,250   1,250 July 2026  1,250   1,250 
1.65% First Priority Senior Secured Notes
January 2027  400   400 January 2027  400   400 
1.50% First Priority Senior Secured Notes (a)(c)
July 2027  416   434 July 2027  408   367 
5.50% First Priority Senior Secured Notes
April 2028  500   — 
4.50% Second Priority Senior Secured Notes
February 2026  300   300 February 2026  291   298 
5.625% Second Priority Senior Secured Notes
July 2027  500   500 July 2027  500   500 
Debt discounts and deferred fees   (69)  (77)   (42)  (60)
Finance leases and otherVarious  64   78 Various  45   49 
Total long-term debt   9,646   9,460    9,307   9,255 
Current portion of long-term debt   (19)  (21)   (12)  (13)
Long-term debt, less current portion  $9,627   9,439   $9,295   9,242 
(a)Effectively 80% fixed interest rate with interest rate swaps (see Note 8).
(b)Indicates debt which has been classified as long-term debt in accordance with the Company's ability and intention to refinance such obligations on a long-term basis.
(c)Euro denominated

During the quarter ended April 1, 2023, the Company issued $500 million aggregate principal amount of 5.50% first priority senior secured notes due 2028. The proceeds were used to repurchase a portion of the Company’s 0.95% first priority senior secured notes due 2024.

Debt discounts and deferred financing fees are presented net of Long-term debt, less the current portion on the Consolidated Balance Sheets and are amortized to Interest expense, net on the Consolidated Statements of Income through maturity. 


8.  Financial Instruments and Fair Value Measurements

In the normal course of business, the Company is exposed to certain risks arising from business operations and economic factors.  The Company may use derivative financial instruments to help manage market risk and reduce the exposure to fluctuations in interest rates and foreign currencies.  These financial instruments are not used for trading or other speculative purposes.

Cross-Currency Swaps

The Company is party to certain cross-currency swaps to hedge a portion of our foreign currency risk.  The swap agreements mature May 2022 (€250 million), June 2024 (€1,625 million) and July 2027 (£700 million).  In addition to cross-currency swaps, we hedge a portion of our foreign currency risk by designating foreign currency denominated long-term debt as net investment hedges of certain foreign operations.  As of April 2, 2022,1, 2023, we had outstanding long-term debt of €785 million that was designated as a hedge of our net investment in certain euro-denominated foreign subsidiaries.  When valuing cross-currency swaps the Company utilizes Level 2 inputs (substantially observable).
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Interest Rate Swaps

The primary purpose of the Company’s interest rate swap activities is to manage interest expense variability associated with our outstanding variable rate term loan debt.  When valuing interest rate swaps the Company utilizes Level 2 inputs (substantially observable).

During fiscal 2023, the Company elected to cash settle existing interest rate swaps and received net proceeds of $36 million.  The offset is included in Accumulated other comprehensive loss and is being amortized to Interest expense through the term of the original swaps.  Following the settlement, the Company entered into interest rate swaps with matching notional amounts with expiration in June 2026.

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As of April 2, 2022,1, 2023, the Company effectively had (i) a $450 million interest rate swap transaction that swaps a one-month variable LIBOR contract for a fixed annual rate of 1.398%4.128%, with an expiration in June 2026, (ii) a $400 million interest rate swap transaction that swaps a one-month variable LIBOR contract for a fixed annual rate of 1.916% with an expiration in June 2026,4.522%, (iii) a $884 million interest rate swap transaction that swaps a one-month variable LIBOR contract for a fixed annual rate of 1.857%, with an expiration in June 2024, and (iv) a $473 million interest rate swap transaction that swaps a one-month variable LIBOR contract for a fixed annual rate of 2.050%3.961%, with(iv) an expiration$884 million interest rate swap transaction that swaps a one-month variable LIBOR contract for a fixed annual rate of 4.522%, and (v) a $500 million interest rate swap transaction that swaps a one-month variable LIBOR contract for a fixed annual rate of 3.672%. The Company's interest rate swap transactions all expire in June 2024.2026.

The Company records the fair value positions of all derivative financial instruments on a net basis by counterparty for which a master netting arrangement is utilized. Balances on a gross basis are as follows:

Derivative InstrumentsHedge DesignationBalance Sheet Location April 2, 2022  October 2, 2021 Hedge DesignationBalance Sheet Location April 1, 2023  October 1, 2022 
Cross-currency swapsDesignatedOther assets $—  $147 
Cross-currency swapsDesignatedOther long-term liabilities $222  $323 DesignatedOther long-term liabilities  125   — 
Interest rate swapsDesignatedOther assets  45   0 DesignatedOther assets  1   11 
Interest rate swapsDesignatedOther long-term liabilities  0   82 DesignatedOther long-term liabilities  39   3 
Interest rate swapsNot designatedOther assets  26   0 Not designatedOther long-term liabilities  113   117 
Interest rate swapsNot designatedOther long-term liabilities  68   49 

The effect of the Company’s derivative instruments on the Consolidated Statements of Income is as follows:

 Quarterly Period Ended  Two Quarterly Periods Ended  Quarterly Period Ended  Two Quarterly Periods Ended 
Derivative Instruments Statements of Income Location April 2, 2022  April 3, 2021  April 2, 2022  April 3, 2021  Statements of Income Location April 1, 2023  April 2, 2022  April 1, 2023  April 2, 2022 
Cross-currency swapsInterest expense $(4) $(1) $(7) $(4)
Interest expense
 $(10) $(4) $(21) $(7)
Interest rate swapsInterest expense  12   17   24   34 
Interest expense
  (11)  12   (17)  24 

Non-recurring Fair Value Measurements

The Company has certain assets that are measured at fair value on a non-recurring basis when impairment indicators are present or when the Company completes an acquisition.  The Company adjusts certain long-lived assets to fair value only when the carrying values exceed the fair values.  The categorization of the framework used to value the assets is considered Level 3, due to the subjective nature of the unobservable inputs used to determine the fair value.  These assets that are subject to our annual impairment analysis primarily include our definite lived and indefinite lived intangible assets, including Goodwill and our property, plant and equipment.  The Company reviews Goodwill and other indefinite lived assets for impairment as of the first day of the fourth fiscal quarter each year and more frequently if impairment indicators exist.  The Company determined Goodwill and other indefinite lived assets were not impaired in our annual fiscal 20212022 assessment.  No impairment indicators were identified in the current quarter.

Included in the following table are the major categories of assets measured at fair value on a non-recurring basis as of April 2, 20221, 2023 and October 2, 2021,1, 2022, along with the impairment loss recognized on the fair value measurement during the period:

 As of April 2, 2022  As of April 1, 2023 
 Level 1  Level 2  Level 3  Total  Impairment  Level 1  Level 2  Level 3  Total  Impairment 
Indefinite-lived trademarks $0  $0  $248  $248  $0  $—  $—  $248  $248  $— 
Goodwill  0   0   5,091   5,091   0   —   —   5,032   5,032   — 
Definite lived intangible assets  0   0   1,844   1,844   0   —   —   1,586   1,586   — 
Property, plant, and equipment  0   0   4,650   4,650   0   —   —   4,612   4,612   4 
Total $0  $0  $11,833  $11,833  $0  $—  $—  $11,478  $11,478  $4 

  As of October 1, 2022 
  Level 1  Level 2  Level 3  Total  Impairment 
Indefinite-lived trademarks $—  $—  $247  $247  $— 
Goodwill  —   —   4,832   4,832   — 
Definite lived intangible assets  —   —   1,606   1,606   — 
Property, plant, and equipment  —   —   4,342   4,342   — 
Total $—  $—  $11,027  $11,027  $— 

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  As of October 2, 2021 
  Level 1  Level 2  Level 3  Total  Impairment 
Indefinite-lived trademarks $0  $0  $248  $248  $0 
Goodwill  0   0   5,192   5,192   0 
Definite lived intangible assets  0   0   1,994   1,994   0 
Property, plant, and equipment  0   0   4,677   4,677   1 
Total $0  $0  $12,111  $12,111  $1 

The Company’s financial instruments consist primarily of cash and cash equivalents, long-term debt, interest rate and cross-currency swap agreements, and finance lease obligations.  The book value of our marketable long-term indebtedness exceeded fair value by $212336 million as of April 2, 20221, 2023.  The Company’s long-term debt fair values were determined using Level 2 inputs (substantially observable). 

9.  Income Taxes

InOn a year-to-date comparison to the statutory rate, the higher effective tax rate for the quarter was negatively impacted by state taxes and global intangible low-taxed income provisions, partially offset by other discrete items.

10.  Segment and Geographic Data

The Company’s operations are organized into 4four reporting segments: Consumer Packaging International, Consumer Packaging North America, Health, Hygiene & Specialties, and Engineered Materials.  The structure is designed to align us with our customers, provide optimal service, drive future growth, and to facilitate synergies realization.

Selected information by reportable segment is presented in the following tables:

 Quarterly Period Ended  Two Quarterly Periods Ended 
  April 2, 2022  April 3, 2021  April 2, 2022  April 3, 2021 
Net sales:            
Consumer Packaging International $1,139  $1,060  $2,195  $2,048 
Consumer Packaging North America  880   731   1,732   1,417 
Health, Hygiene & Specialties  822   781   1,640   1,521 
Engineered Materials  934   798   1,781   1,520 
Total net sales $3,775  $3,370  $7,348  $6,506 
Operating income:                
Consumer Packaging International $97  $59  $166  $135 
Consumer Packaging North America  85   77   131   136 
Health, Hygiene & Specialties  69   114   131   210 
Engineered Materials  90   83   142   156 
Total operating income $341  $333  $570  $637 
Depreciation and amortization:                
Consumer Packaging International $82  $87  $164  $171 
Consumer Packaging North America  53   54   107   110 
Health, Hygiene & Specialties  44   42   89   87 
Engineered Materials  27   29   57   59 
 Total depreciation and amortization $206  $212  $417  $427 

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 Quarterly Period Ended  Two Quarterly Periods Ended 
  April 1, 2023  April 2, 2022  April 1, 2023  April 2, 2022 
Net sales:            
Consumer Packaging International $1,059  $1,139  $1,995  $2,195 
Consumer Packaging North America  774   880   1,537   1,732 
Health, Hygiene & Specialties  677   822   1,340   1,640 
Engineered Materials  778   934   1,476   1,781 
Total net sales $3,288  $3,775  $6,348  $7,348 
Operating income:                
Consumer Packaging International $75  $97  $121  $166 
Consumer Packaging North America  93   85   164   131 
Health, Hygiene & Specialties  34   69   68   131 
Engineered Materials  99   90   158   142 
Total operating income $301  $341  $511  $570 
Depreciation and amortization:                
Consumer Packaging International $77  $82  $151  $164 
Consumer Packaging North America  54   53   105   107 
Health, Hygiene & Specialties  44   44   88   89 
Engineered Materials  25   27   55   57 
 Total depreciation and amortization $200  $206  $399  $417 

Selected information by geographical region is presented in the following tables:

 Quarterly Period Ended  Two Quarterly Periods Ended  Quarterly Period Ended  Two Quarterly Periods Ended 
 April 2, 2022  April 3, 2021  April 2, 2022  April 3, 2021  April 1, 2023  April 2, 2022  April 1, 2023  April 2, 2022 
Net sales:                        
United States and Canada $1,996  $1,728  $3,948  $3,405  $1,751  $1,996  $3,447  $3,948 
Europe  1,399   1,257   2,616   2,350   1,237   1,399   2,286   2,616 
Rest of world  380   385   784   751   300   380   615   784 
Total net sales $3,775  $3,370  $7,348  $6,506  $3,288  $3,775  $6,348  $7,348 

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11.  Contingencies and Commitments

The Company is party to various legal proceedings involving routine claims which are incidental to its business.  Although the Company’s legal and financial liability with respect to such proceedings cannot be estimated with certainty, we believe that any ultimate liability would not be material to our financial statements.position, results of operations or cash flows.

The Company has various purchase commitments for raw materials, supplies, and property and equipment incidental to the ordinary conduct of business.

12.  Share Repurchase Program

During the quarterly period ended April 2, 2022, the Company repurchased and retired 5,029 thousand shares for $300 million.  For the two quarterly periods ended April 2, 2022, the Company repurchased and retired 5,756 thousand shares for $351 million.  Authorized share repurchases of $700 million remain available to the Company. 


13.12.  Basic and Diluted Earnings Per Share

Basic net income or earnings per share ("EPS") is calculated by dividing the net income attributable to common stockholders by the weighted-average number of common shares outstanding during the period, without consideration for common stock equivalents.

Diluted EPS includes the effects of options and restricted stock units, if dilutive.

The following tables provide a reconciliation of the numerator and denominator of the basic and diluted EPS calculations:

 Quarterly Period Ended  Two Quarterly Periods Ended  Quarterly Period Ended  Two Quarterly Periods Ended 
(in millions, except per share amounts) April 2, 2022  April 3, 2021  April 2, 2022  April 3, 2021  April 1, 2023  April 2, 2022  April 1, 2023  April 2, 2022 
Numerator                        
Consolidated net income $205  $181  $326  $311  $174  $205  $280  $326 
Denominator                                
Weighted average common shares outstanding - basic  133.8   134.3   134.6   133.9   120.7   133.8   122.2   134.6 
Dilutive shares  3.1   2.5   3.4   2.7   1.8   3.1   1.1   3.4 
Weighted average common and common equivalent shares outstanding - diluted  136.9   136.8   138.0   136.6   122.5   136.9   123.3   138.0 
                                
Per common share earnings                                
Basic $1.53  $1.35  $2.42  $2.32  $1.44  $1.53  $2.29  $2.42 
Diluted $1.50  $1.32  $2.36  $2.28  $1.42  $1.50  $2.27  $2.36 

1.2 million and 1.32.6 million shares respectively, were excluded from the diluted EPS calculation for the quarterly and two quarterly periods ended April 2, 20221, 2023 as their effect would be anti-dilutive.  For1.2 million and 1.3 million shares were excluded for the quarterly and two quarterly periods ended April 3, 2021, 3.2 million shares were excluded.2, 2022. 

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14.13.  Accumulated Other Comprehensive Loss

The components and activity of Accumulated other comprehensive loss are as follows:

Quarterly Period Ended 
Currency
Translation
  
Defined Benefit
Pension and Retiree
Health Benefit Plans
  
Derivative
Instruments
  
Accumulated Other
Comprehensive Loss
 
Balance at January 1, 2022 $(176) $(67) $(46) $(289)
Other comprehensive income before reclassifications  37   0   69   106 
Net amount reclassified  0   0   2   2 
Balance at April 2, 2022 $(139) $(67) $25  $(181)
Quarterly Period Ended 
Currency
Translation
  
Defined Benefit
Pension and Retiree
Health Benefit Plans
  
Derivative
Instruments
  
Accumulated Other
Comprehensive Loss
 
Balance at December 31, 2022 $(314) $(32) $83  $(263)
Other comprehensive income (loss) before reclassifications  60   —   (21)  39 
Net amount reclassified  —   —   (10)  (10)
Balance at April 1, 2023 $(254) $(32) $52  $(234)

 
Currency
Translation
  
Defined Benefit
Pension and Retiree
Health Benefit Plans
  
Derivative
Instruments
  
Accumulated Other
Comprehensive Loss
  
Currency
Translation
  
Defined Benefit
Pension and Retiree
Health Benefit Plans
  
Derivative
Instruments
  
Accumulated Other
Comprehensive Loss
 
Balance at January 2, 2021 $(100) $(116) $(140) $(356)
Balance at January 1, 2022 $(176) $(67) $(46) $(289)
Other comprehensive income (loss) before reclassifications  (73)  0   52   (21)  37   —   69   106 
Net amount reclassified  0   0   2   2   —   —   2   2 
Balance at April 3, 2021 $(173) $(116) $(86) $(375)
Balance at April 2, 2022 $(139) $(67) $25  $(181)

Two Quarterly Periods Ended 
Currency
Translation
  
Defined Benefit
Pension and Retiree
Health Benefit Plans
  
Derivative
Instruments
  
Accumulated Other
Comprehensive Loss
 
Balance at October 2, 2021 $(154) $(67) $(75) $(296)
Other comprehensive income before reclassifications  15   0   95   110 
Net amount reclassified  0   0   5   5 
Balance at April 2, 2022 $(139) $(67) $25  $(181)
Two Quarterly Periods Ended 
Currency
Translation
  
Defined Benefit
Pension and Retiree
Health Benefit Plans
  
Derivative
Instruments
  
Accumulated Other
Comprehensive Loss
 
Balance at October 1, 2022 $(455) $(32) $84  $(403)
Other comprehensive income (loss) before reclassifications  201   —   (16)  185 
Net amount reclassified  —   —   (16)  (16)
Balance at April 1, 2023 $(254) $(32) $52  $(234)

  
Currency
Translation
  
Defined Benefit
Pension and Retiree
Health Benefit Plans
  
Derivative
Instruments
  
Accumulated Other
Comprehensive Loss
 
Balance at September 26, 2020 $(278) $(116) $(157) $(551)
Other comprehensive income before reclassifications  105   0   67   172 
Net amount reclassified  0   0   4   4 
Balance at April 3, 2021 $(173) $(116) $(86) $(375)
  
Currency
Translation
  
Defined Benefit
Pension and Retiree
Health Benefit Plans
  
Derivative
Instruments
  
Accumulated Other
Comprehensive Loss
 
Balance at October 2, 2021 $(154) $(67) $(75) $(296)
Other comprehensive income (loss) before reclassifications  15   —   95   110 
Net amount reclassified  —   —   5   5 
Balance at April 2, 2022 $(139) $(67) $25  $(181)


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Item 2.  Management’s Discussion and Analysis of Financial Condition and Results of Operations

Executive Summary

Business.  The Company’s operations are organized into four operating segments: Consumer Packaging International, Consumer Packaging North America, Health, Hygiene & Specialties, and Engineered Materials.  The structure is designed to align us with our customers, provide improved service, drive future growth, and to facilitate synergies realization.  The Consumer Packaging International segment primarily consists of containers, closures and dispensing systems, pharmaceutical devices and packaging, bottles and canisters, and technical components.containers.  The Consumer Packaging North America segment primarily consists of containers and pails, foodservice, closures, overcaps, bottles, prescription vials, and tubes.  The Health, Hygiene & Specialties segment primarily consists of nonwoven specialty materials, tapeshealthcare, hygiene, specialties, and adhesives, and films used in hygiene, infection prevention, personal care, industrial, construction, and filtration applications.tapes.  The Engineered Materials segment primarily consists of stretch and shrink films, converter films, institutional can liners, food and consumer films, retail bags, and agriculture films.

Raw Material Trends.  Our primary raw material is polymer resin.  In addition, we use other materials such as butyl rubber, adhesives, papercolorants, linerboard, and packaging materials linerboard, rayon, polyester fiber, and foil, in various manufacturing processes.  While temporary industry-wide shortages of raw materials have occurred, we have historically been able to manage the supply chain disruption by working closely with our suppliers and customers.  Supply shortages can lead to increased raw material price volatility, which we have experienced in recent quarters.  IncreasesChanges in the price of raw materials are generally able to be passed on to customers through contractual price mechanisms over time, during contract renewals and other means.  We expect supply chain challenges to continue throughout fiscal 2022 and will continue to work closely with our suppliers and customers in an effort to minimize any impact.

Outlook.  The Company is affected by general economic and industrial growth, raw material availability, cost inflation, supply chain disruptions, and general industrial production.  The COVID-19 pandemic has resulted in both advantaged and disadvantaged products within all segments.  During fiscal 2022, we anticipate a headwind as the advantaged products, particularly in our Health, Hygiene & Specialties segment, related to the COVID-19 pandemic moderate while recovery of disadvantaged products lags with the ultimate impact being affected by both the duration certain products remain advantaged and timing of when disadvantaged products normalize.  Our business has both geographic and end market diversity, which reduces the effect of any one of these factors on our overall performance.  Our results are affected by our ability to pass through raw material and other cost changes to our customers, improve manufacturing productivity, and adapt to volume changes of our customers.  WeDespite global macro-economic challenges in the short-term attributed to general market softness and continued inflation, particularly in Europe, we continue to believe that by providing advantaged products in targeted markets, our underlying long-term demand fundamental in all divisions will remain strong as we focus on delivering protective solutions that enhance consumer safety and execute on the Company’s mission statement of “Always Advancing to Protect What’s Important.”by providing advantaged products in targeted markets.  For fiscal 2022,2023, we project cash flow from operations between $1.75$1.4 to $1.5 billion and $1.65 billion, which assumes the benefit from the lag in recovery of inflation, improved supply chains, and free cash flow between $1 billion and$800 to $900 million.  Projected fiscal 20222023 free cash flow assumes $750$600 million of capital spending.  In addition, we repurchased 5,756 thousand shares for $351 million in the first half of the fiscal year and expect to continue repurchases in the second half of the fiscal year if current valuations persist.  For the calculation of free cash flow and further information related to free cash flow as a non-GAAP financial measure, see “Liquidity and Capital Resources.”

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Results of Operations

Comparison of the Quarterly Period Ended April 2, 20221, 2023 (the “Quarter”) and the Quarterly Period Ended April 3, 20212, 2022 (the “Prior Quarter”)

Business integration expenses consist of restructuring and impairment charges, divestiture related costs, and other business optimization costs.  Tables present dollars in millions.

Consolidated Overview                  
 Quarter  Prior Quarter  $ Change  % Change  Quarter  Prior Quarter  $ Change  % Change 
Net sales $3,775  $3,370  $405   12% $3,288  $3,775  $(487)  (13)%
Cost of goods sold  3,154   2,706   448   17%  2,682   3,154   (472)  (15)%
Other operating expenses  280   331   (51)  (15)%  305   280   25   9%
Operating income $341  $333  $8   2% $301  $341  $(40)  (12)%

Net Sales:  The net sales growth is primarily attributed to increased selling prices of $576 million due to the pass through of inflation.  This increase was partially offset by an organic volume decline of 2%, a $64 million unfavorable impact from foreign currency changes, extra shipping days in the Prior Quarter of $19 million, and Prior Quarter divestiture sales of $14 million.  The volume decline is primarily attributed to supply chain disruptions and the moderation of advantaged products related to the COVID-19 pandemic.

Cost of goods sold:  The cost of goods sold increase is attributed to inflation, partially offset by thea 6% volume decline, a decrease from foreign currency changes, extra shipping days in the Prior Quarter, and Prior Quarter divestiture cost of goods sold of $12 million.

Other operating expenses:  The other operating expenses decrease is primarily attributed to a decrease in business integration expense and selling, general, and administrative expense.

Operating Income:  The operating income increase is primarily attributed to a $37 million decrease in business integration expense, and a decrease in selling, general, and administrative expenses, partially offset by a $13 million unfavorable impact from price cost spread and negative product mix, a $12 million unfavorable impact from foreign currency, and a $10 million unfavorable impact from the volume decline.

Consumer Packaging International         
  Quarter  Prior Quarter  $ Change  % Change 
Net sales $1,139  $1,060  $79   7%
Operating income $97  $59  $38   64%

Net Sales:  The net sales growth in the Consumer Packaging International segment is primarily attributed to increaseddecreased selling prices of $144$143 million due to the pass throughpass-through of inflation, partially offset by a $51lower resin costs, an $80 million unfavorable impact from foreign currency changes, and Prior Quarter divestiture sales of $14$42 million.The volume decline is primarily attributed to general market softness and ongoing inventory destocking.

Cost of goods sold:  The cost of goods sold decrease is primarily attributed to lower raw material prices, the volume decline, foreign currency changes, and Prior Quarter divestiture cost of goods sold.

Other operating expenses:  The other operating expenses increase is primarily attributed to an increase in business integration costs and selling, general, and administrative expenses.

Operating Income:  The operating income decrease is primarily attributed to a $35 million unfavorable impact from the volume decline, an $18 million increase in business integration costs, a $15 million unfavorable impact from foreign currency changes, and an unfavorable impact from increased selling, general, and administrative expenses.  These declines are partially offset by a $40 million favorable impact from price cost spread as a result of cost reduction and improved product mix.
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Consumer Packaging International         
  Quarter  Prior Quarter  $ Change  % Change 
Net sales $1,059  $1,139  $(80)  (7)%
Operating income $75  $97  $(22)  (23)%

Net Sales:  The net sales decline in the Consumer Packaging International segment is primarily attributed to a $57 million unfavorable impact from foreign currency changes, a 5% volume decline, and Prior Quarter divestiture sales of $42 million, partially offset by increased selling prices of $76 million due to the pass-through of European inflation.  The volume decline is primarily attributed to general market softness.

Operating Income:  The operating income decrease is primarily attributed to a $10 million unfavorable impact from the volume decline, a $9 million unfavorable impact from foreign currency changes, a $7 million unfavorable impact from increased business integration costs, and increased selling, general, and administrative expenses. These items are partially offset by a $10 million favorable impact from price cost spread.
 
Consumer Packaging North America
         
  Quarter  Prior Quarter  $ Change  % Change 
Net sales $774  $880  $(106)  (12)%
Operating income $93  $85  $8   9%

Net Sales:  The net sales decline in the Consumer Packaging North America segment is primarily attributed to decreased selling prices of $80 million and a 3% volume decline. The volume decline is primarily attributed to general market softness partially offset by growth in our foodservice market.

Operating Income:  The operating income increase is primarily attributed to a $39 million decrease in business integration expense and a $4 million decrease in amortization expense, partially offset by a $9 million unfavorable impact from foreign currency.
 
Consumer Packaging North America
         
  Quarter  Prior Quarter  $ Change  % Change 
Net sales $880  $731  $149   20%
Operating income $85  $77  $8   10%

Net Sales:  The net sales growth in the Consumer Packaging North America segment is primarily attributed to increased selling prices of $155 million due to the pass through of inflation.

Operating Income:  The operating income increase is primarily attributed to an $11$24 million favorable impact from price cost spread.
spread, partially offset by unfavorable impacts from the volume decline, increased business integration costs, and increased selling, general, and administrative 16expenses.
Index


Health, Hygiene & Specialties                  
 Quarter  Prior Quarter  $ Change  % Change  Quarter  Prior Quarter  $ Change  % Change 
Net sales $822  $781  $41   5% $677  $822  $(145)  (18)%
Operating income $69  $114  $(45)  (39)% $34  $69  $(35)  (51)%

Net Sales:  The net sales growthdecline in the Health, Hygiene & Specialties segment is primarily attributed to increaseda 9% volume decline and decreased selling prices of $82$64 million.  The volume decline is primarily attributed to general market softness in our specialties markets and ongoing inventory destocking.

Operating Income:  The operating income decrease is primarily attributed to a $19 million dueunfavorable impact from price cost spread and a $9 million unfavorable impact from the volume decline.

Engineered Materials         
  Quarter  Prior Quarter  $ Change  % Change 
Net sales $778  $934  $(156)  (17)%
Operating income $99  $90  $9   10%

Net Sales:  The net sales decline in the Engineered Materials segment is primarily attributed to the pass throughdecreased selling prices of inflation, partially offset by$75 million, a 3%7% volume decline, and a $10$16 million unfavorable impact from foreign currency changes.  The volume decline is primarily attributed to the moderation of advantaged products related to the COVID-19 pandemic.

Operating Income:  The operating income decrease is primarily attributed to a $39 million unfavorable impact from price cost spreadgeneral market softness in European industrial markets and negative product mix.

Engineered Materials         
  Quarter  Prior Quarter  $ Change  % Change 
Net sales $934  $798  $136   17%
Operating income $90  $83  $7   8%

Net Sales:  The net sales growth in the Engineered Materials segment is primarily attributed to increased selling prices of $195 million due to the pass through of inflation, partially offset by a volume decline of 6%.  The volume decline is primarily attributed to supply chain disruptions.ongoing inventory destocking.

Operating Income:  The operating income increase is primarily attributed to a $13$25 million favorable impact from price cost spread, partially offset by thean $11 million unfavorable impact from the volume decline.
 
Other expense, net
         
  Quarter  Prior Quarter  $ Change  % Change 
Other expense, net $6  $6  $—   — 

The other expense in the Quarter is primarily attributed to a loss on asset disposals.  The Prior Quarter expense is primarily attributed to debt extinguishment costs, partially offset by favorable foreign currency changes related to the remeasurement of non-operating intercompany balances.

Interest expense, net         
  Quarter  Prior Quarter  $ Change  % Change 
Interest expense, net $71  $84  $(13)  (15)%
Interest expense         
  Quarter  Prior Quarter  $ Change  % Change 
Interest expense $79  $71  $8   11%

The interest expense decreaseincrease is primarily the result of refinancing activities and repayment of borrowings in fiscal 2021.higher interest rates.
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Index

Changes in Comprehensive Income

The $151$110 million improvementdecline in comprehensive income from the Prior Quarter is primarily attributed to a $24$102 million improvement in net income, a $17 million favorableunfavorable change in the fair value of derivative instruments, net of tax, and a $110$31 million decline in net income, partially offset by a $23 million favorable change in currency translation.  Currency translation gains and losseschanges are primarily related to non-U.S. subsidiaries with a functional currency other than the U.S. dollarsdollar whereby assets and liabilities are translated from the respective functional currency into U.S. dollars using period-end exchange rates.  The change in currency translation in the YTDQuarter was primarily attributed to locations utilizing the euro,Euro and British pound sterling Brazilian real, Canadian dollar, Chinese renminbi and Mexican peso as thetheir functional currency.  As part of the overall risk management, the Company uses derivative instruments to (i) reduce our exposure to changes in interest rates attributed to the Company’s borrowings and (ii) reduce foreign currency exposure to translation of certain foreign operations.  The Company records changes to the fair value of these instruments in Accumulated other comprehensive loss.  The change in fair value of these instruments in fiscal 20222023 versus fiscal 20212022 is primarily attributed to the change in the forward interest and foreign exchange curves between measurement dates.
17
Index


Comparison of the Two Quarterly Periods Ended April 2, 20221, 2023 (the “YTD”) and the Two Quarterly Periods Ended April 3, 20212, 2022 (the “Prior YTD”)

The Company’s U.S. based results for the YTD and Prior YTD are based on a twenty-six and twenty-seven week period, respectively.   Business integration expenses consist of restructuring and impairment charges, divestiture related costs, and other business optimization costs.  Tables present dollars in millions.

Consolidated Overview                  
 YTD  Prior YTD  $ Change  % Change  YTD  Prior YTD  $ Change  % Change 
Net sales $7,348  $6,506  $842   13% $6,348  $7,348  $(1,000)  (14)%
Cost of goods sold  6,192   5,224   968   19%  5,224   6,192   (968)  (16)%
Other operating expenses  586   645   (59)  (9)%  613   586   27   5%
Operating income $570  $637  $(67)  (11)% $511  $570  $(59)  (10)%

Net Sales:  The net sales growthdecline is primarily attributed to increaseda 6% volume decline, decreased selling prices of $1.3 billion$286 million due to the pass throughpass-through of inflation.  This increase was partially offset by an organic volume decline of 3%, extra days in the Prior YTD of $131 million, an $81lower resin costs, a $188 million unfavorable impact from foreign currency changes, and Prior YTD divestiture sales of $62$81 million.  The volume decline is primarily attributed to general market softness and customer destocking as supply chain disruptions and the moderation of advantaged products related to the COVID-19 pandemic.chains normalize.

Cost of goods sold:  The cost of goods sold increasedecrease is primarily attributed to inflation, partially offset bylower raw material prices, the volume decline, a decrease from foreign currency changes, extra days in the Prior YTD, and Prior YTD divestiture cost of goods sold of $50 million.sold.

Other operating expenses:  The other operating expenses decreaseincrease is primarily attributed to a decreasean increase in business integration expense, selling, general, and administrative expense, and amortization expense.costs.

Operating Income:  The operating income decrease is primarily attributed to a $54 million unfavorable impact from price cost spread, a $25$68 million unfavorable impact from the volume decline, a $22 million decrease from extra shipping days in the Prior YTD, a $15$37 million unfavorable impact from foreign currency changes, and a negative$26 million unfavorable impact from Prior YTD divestiture operating income,increased business integration costs.  These declines are partially offset by a $46$90 million decrease in business integration expense,favorable impact from price cost spread as a result of cost reduction and a decrease in selling, general, and administrative expenses.improved product mix.
Consumer Packaging International
                  
 YTD  Prior YTD  $ Change  % Change  YTD  Prior YTD  $ Change  % Change 
Net sales $2,195  $2,048  $147   7% $1,995  $2,195  $(200)  (9)%
Operating income $166  $135  $31   23% $121  $166  $(45)  (27)%

Net Sales:  The net sales growthdecline in the Consumer Packaging International segment is primarily attributed to increased selling prices of $260 million due to the pass through of inflation, partially offset by a $67$122 million unfavorable impact from foreign currency changes, a 5% volume decline, and Prior YTDQuarter divestiture sales of $28 million.$81 million, partially offset by increased selling prices of $116 million due to the pass-through of European inflation.  The volume decline is primarily attributed to general market softness.

Operating Income:  The operating income increasedecrease is primarily attributed to a $47 million decrease in business integration expense and a decrease in depreciation and amortization expense, partially offset by an $11$25 million unfavorable impact from foreign currency changes, a $20 million unfavorable impact from the volume decline, and a $9an $8 million unfavorable impact from increased business integration costs. These declines are partially offset by a $16 million favorable impact from price cost spread.
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Index

Consumer Packaging North America                  
 YTD  Prior YTD  $ Change  % Change  YTD  Prior YTD  $ Change  % Change 
Net sales $1,732  $1,417  $315   22% $1,537  $1,732  $(195)  (11)%
Operating income $131  $136  $(5)  (4)% $164  $131  $33   25%

Net Sales:  The net sales growthdecline in the Consumer Packaging North America segment is primarily attributed to increaseddecreased selling prices of $371$142 million dueand a 3% volume decline. The volume decline is primarily attributed to the pass through of inflation,general market softness partially offset by growth in our foodservice market.

Operating Income:  The operating income increase is primarily attributed to a $58 million favorable impact from price cost spread, partially offset by a $40$9 million decreaseunfavorable impact from extra shipping daysthe volume decline and an unfavorable impact from increased selling, general, and administrative expenses.

Health, Hygiene & Specialties         
  YTD  Prior YTD  $ Change  % Change 
Net sales $1,340  $1,640  $(300)  (18)%
Operating income $68  $131  $(63)  (48)%

Net Sales:  The net sales decline in the Prior YTD.Health, Hygiene & Specialties segment is primarily attributed to a 9% volume decline, decreased selling prices of $136 million, and a $25 million unfavorable impact from foreign currency changes.  The volume decline is primarily attributed to general market softness and customer destocking as supply chains normalize.

Operating Income:  The operating income decrease is primarily attributed to a $7 million decrease from extra shipping days in the Prior YTD.
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Index


Health, Hygiene & Specialties         
  YTD  Prior YTD  $ Change  % Change 
Net sales $1,640  $1,521  $119   8%
Operating income $131  $210  $(79)  (38)%

Net Sales:  The net sales growth in the Health, Hygiene & Specialties segment is primarily attributed to increased selling prices of $225 million due to the pass through of inflation, partially offset by a 4% volume decline, and a $42 million decrease from extra shipping days in the Prior YTD.  The volume decline is primarily attributed to supply chain disruptions and the moderation of advantaged products related to the COVID-19 pandemic.

Operating Income:  The operating income decrease is primarily attributed to a $61$38 million unfavorable impact from price cost spread, an $11a $17 million unfavorable impact from the volume decline, and an $8 million decreaseunfavorable impact from extra shipping days in the Prior YTD.foreign currency changes.
 
Engineered Materials
         
  YTD  Prior YTD  $ Change  % Change 
Net sales $1,781  $1,520  $261   17%
Operating income $142  $156  $(14)  (9)%

Engineered Materials         
  YTD  Prior YTD  $ Change  % Change 
Net sales $1,476  $1,781  $(305)  (17)%
Operating income $158  $142  $16   11%

Net Sales:  The net sales growthdecline in the Engineered Materials segment is primarily attributed to increasedan 8% volume decline, decreased selling prices of $426$124 million, due to the pass through of inflation, partially offset byand a volume decline of 5%, a $44$41 million decreaseunfavorable impact from extra shipping days in the Prior YTD, and Prior YTD divestiture sales of $34 million.foreign currency changes.  The volume decline is primarily attributed to general market softness and customer destocking as supply chain disruptions.chains normalize.

Operating Income:  The operating income decreaseincrease is primarily attributed to a $13$54 million favorable impact from Prior YTD divestiture operating income,price cost spread, partially offset by a $9$22 million unfavorable impact from the volume decline, and a decrease from extra shipping days in the Prior YTD, partially offset by a $13 million favorablean unfavorable impact from price cost spread.increased selling, general, and administrative expenses, and an unfavorable impact from increased business integration costs.

Other expense         
  YTD  Prior YTD  $ Change  % Change 
Other expense $6  $31  $(25)  (81)%

The other expense decrease is primarily attributed to foreign currency changes related to the remeasurement of non-operating intercompany balances in the Prior YTD.

Interest expense                  
 YTD  Prior YTD  $ Change  % Change  YTD  Prior YTD  $ Change  % Change 
Interest expense $142  $181  $(39)  (22)% $150  $142  $8   6%

The interest expense decreaseincrease is primarily the result of refinancing activities and repayments of borrowings in fiscal 2021.higher interest rates.

Changes in Comprehensive Income

The $46$8 million declineimprovement in comprehensive income from the Prior YTD was primarily attributed to a $15$186 million improvement in net income, a $90 million unfavorablefavorable change in currency translation, andpartially offset by a $29$132 million favorableunfavorable change in the fair value of derivative instruments, net of tax.tax, and a $46 million decline in net income.  Currency translation gains and losseschanges are primarily related to non-U.S. subsidiaries with a functional currency other than the U.S. dollarsdollar whereby assets and liabilities are translated from the respective functional currency into U.S. dollars using period-end exchange rates.  The change in currency translation in the YTD was primarily attributed to locations utilizing the euro,Euro and British pound sterling Brazilian real, Canadian dollar, Chinese renminbi and Mexican peso as thetheir functional currency.  As part of the overall risk management, the Company uses derivative instruments to (i) reduce our exposure to changes in interest rates attributed to the Company’s borrowings and (ii) reduce foreign currency exposure to translation of certain foreign operations.  The Company records changes to the fair value of these instruments in Accumulated other comprehensive loss.  The change in fair value of these instruments in fiscal 20222023 versus fiscal 20212022 is primarily attributed to the change in the forward interest and foreign exchange curves between measurement dates.
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Index


Liquidity and Capital Resources
Senior Secured Credit Facility

We manage our global cash requirements considering (i) available funds among the many subsidiaries through which we conduct business, (ii) the geographic location of our liquidity needs, and (iii) the cost to access international cash balances.  At the end of the Quarter, the Company had anno outstanding balance of $244 million on its $950$1,050 million asset-based revolving line of credit that matures in May 2024. The Company was in compliance with all covenants at the end of the Quarter.

Cash Flows

Net cash from operating activities decreased $652increased $182 million from the Prior YTD primarily attributed to working capital inflation and timing of payables.improvement.

Net cash used in investing activities increased $143$109 million from the Prior YTD primarily attributed to fewer proceeds from business divestiture.the acquisition of Pro-Western in the YTD.

Net cash used in financing activities decreased $250increased $358 million from the Prior YTD primarily attributed to higher net borrowings, partially offset by repurchasesrepayments of common stocklong-term debt and initiation of a quarterly dividend in the YTD.

Dividend Payments

The Company declared and paid a cash dividend of $0.25 per share during both the first fiscal quarter that ended December 31, 2022 and the second fiscal quarter that ended April 1, 2023.

Share Repurchases

DuringYTD fiscal 2022,2023, the Company repurchased 5.8approximately 6 million shares for $351$333 million.  Authorized share repurchases of $700$710 million remain available to the Company.

Free Cash Flow

Our consolidated free cash flow for the YTD and Fiscal 2022 OutlookPrior YTD are summarized as follows:

 April 2, 2022  Fiscal 2022 Outlook  April 1, 2023  April 2, 2022 
Cash flow from operating activities $(14) $1,650-1,750  $168  $(14)
Additions to property, plant and equipment, net  (367)  (750)  (385)  (367)
Free cash flow $(381) $900-1,000  $(217) $(381)

We use free cash flow as a supplemental measure of liquidity as it assists us in assessing our ability to fund growth through generation of cash.  Free cash flow may be calculated differently by other companies, including other companies in our industry or peer group, limiting its usefulness on a comparative basis.  Free cash flow is not a financial measure presented in accordance with generally accepted accounting principles ("GAAP") and should not be considered as an alternative to any other measure determined in accordance with GAAP.

Liquidity Outlook

At April 2, 2022,1, 2023, our cash balance was $622$696 million, which was primarily located outside the U.S.  We believe our existing U.S. based cash and cash flow from U.S. operations, together with available borrowings under our senior secured credit facilities, will be adequate to meet our short-term and long-term liquidity needs with the exception of funds needed to cover all long-term debt obligations, which we intend to refinance prior to maturity.  The Company has the ability to repatriate the cash located outside the U.S. to the extent not needed to meet operational and capital needs without significant restrictions.
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Index


Summarized Guarantor Financial Information

Berry Global, Inc. (“Issuer”) has notes outstanding which are fully, jointly, severally, and unconditionally guaranteed by its parent, Berry Global Group, Inc. (for purposes of this section, “Parent”) and substantially all of Issuer’s domestic subsidiaries. Separate narrative information or financial statements of the guarantor subsidiaries have not been included because they are 100% owned by Parent and the guarantor subsidiaries unconditionally guarantee such debt on a joint and several basis. A guarantee of a guarantor subsidiary of the securities will terminate upon the following customary circumstances: the sale of the capital stock of such guarantor if such sale complies with the indentures, the designation of such guarantor as an unrestricted subsidiary, the defeasance or discharge of the indenture or in the case of a restricted subsidiary that is required to guarantee after the relevant issuance date, if such guarantor no longer guarantees certain other indebtedness of Issuer. The guarantees of the guarantor subsidiaries are also limited as necessary to prevent them from constituting a fraudulent conveyance under applicable law and any guarantees guaranteeing subordinated debt are subordinated to certain other of the Company’s debts. Parent also guarantees Issuer’s term loans and revolving credit facilities. The guarantor subsidiaries guarantee our term loans and are co-borrowers under our revolving credit facility.

Presented below is summarized financial information for the Parent, Issuer and guarantor subsidiaries on a combined basis, after intercompany transactions have been eliminated.

 Two Quarterly Periods Ended  Two Quarterly Periods Ended 
 April 2, 2022  April 1, 2023 
Net sales $3,813  $3,346 
Gross profit  599   653 
Earnings from continuing operations  175   231 
Net income $175  $231 

Includes $2$4 million of income associated with intercompany activity with non-guarantor subsidiaries.

 April 2, 2022  October 2, 2021  April 1, 2023  October 1, 2022 
Assets            
Current assets $2,033  $2,293  $1,618  $2,432 
Noncurrent assets  6,044   5,979   5,961   6,137 
                
Liabilities                
Current liabilities $1,094  $1,533  $915  $1,536 
Intercompany payable  634   629   636   634 
Noncurrent liabilities  11,097   11,083   10,676   10,630 

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Index


Item 3.  Quantitative and Qualitative Disclosures about Market Risk

Interest Rate Risk

We are exposed to market risk from changes in interest rates primarily through our senior secured credit facilities.  Our senior secured credit facilities are comprised of (i) $3.4 billion term loans and (ii) a $950$1,050 million revolving credit facility with $244 millionno balance outstanding.  Borrowings under our senior secured credit facilities bear interest at a rate equal to an applicable margin plus LIBOR.LIBOR or SOFR.  The applicable margin for LIBOR rate borrowings under the revolving credit facility ranges from 1.25% to 1.50%, and the margin for term loans is 1.75% per annum.  As of period end, the LIBOR rate of approximately 0.46%4.86% was applicable to the term loans.  AFor the portion of our term loans that are not hedged by interest rate swaps, a 0.25% change in LIBOR would increase our annual interest expense by $3$2 million on variable rate term loans.

We seek to minimize interest rate volatility risk through regular operating and financing activities and, when deemed appropriate, through the use of derivative financial instruments.  These financial instruments are not used for trading or other speculative purposes. (See Note 8.)

Foreign Currency Risk

As a global company, we face foreign currency risk exposure from fluctuating currency exchange rates, primarily the U.S. dollar against the euro, British pound sterling, Brazilian real, Chinese renminbi, Canadian dollar and Mexican peso.  Significant fluctuations in currency rates can have a substantial impact, either positive or negative, on our revenue, cost of sales, and operating expenses.   Currency translation gains and losses are primarily related to non-U.S. subsidiaries with a functional currency other than U.S. dollars whereby assets and liabilities are translated from the respective functional currency into U.S. dollars using period-end exchange rates and impact our Comprehensive income.  A 10% decline in foreign currency exchange rates would have had a $6$12 million unfavorable impact on our Net income for the two quarterly periods ended April 2, 2022.1, 2023. (See Note 8.)
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Index


Item 4.  Controls and Procedures

(a) Evaluation of disclosure controls and procedures.

Under applicable Securities and Exchange Commission regulations, management of a reporting company, with the participation of the principal executive officer and principal financial officer, must periodically evaluate the company’s “disclosure controls and procedures,” which are defined generally as controls and other procedures of a reporting company designed to ensure that information required to be disclosed by the reporting company in its periodic reports filed with the commission (such as this Form 10-Q) is recorded, processed, summarized, and reported on a timely basis.

The Company’s management, with the participation of the Chief Executive Officer and the Chief Financial Officer, carried out an evaluation of the effectiveness of the design and operation of the disclosure controls and procedures as of the end of the period covered by this report.  Based on this evaluation, our Chief Executive Officer and Chief Financial Officer concluded that the design and operation of our disclosure controls and procedures were effective at the reasonable assurance level as of the end of the period covered by this report.

(b) Changes in internal control over financial reporting.

There were no changes in our internal control over financial reporting that occurred during the Quarter that have materially affected, or are reasonably likely to materially affect, our internal control over financial reporting.

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Part II.  Other Information

Item 1.  Legal Proceedings

There have been no material changes in legal proceedings from the items disclosed in our most recent Form 10-K filed with the Securities and Exchange Commission.

Item 1A.  Risk Factors

On February 24, 2022, Russia launched an invasion of Ukraine which has resulted in increased volatility in various sectors and markets. The extent and duration of the military action, resulting sanctions and future market disruptions in the region are not currently known.  While the Company’s sales and assets in Russia are immaterial, the effects of the hostilities and sanctions may spill over to our customers and negatively impact their operations.  Additionally, the ongoing military action along with the potential for a wider conflict could further increase market volatility and cause negative effects on regional and global economic markets, industries, and companies.

Before investing in our securities, we recommend that investors carefully consider the risks described in our most recent Form 10-K and subsequent periodic reports filed with the Securities and Exchange Commission, including those under the heading “Risk Factors” and other information contained in this Quarterly Report.  Realization of any of these risks could have a material adverse effect on our business, financial condition, cash flows and results of operations.

Additionally, we caution readers that the list of risk factors discussed in our most recent Form 10-K and subsequent periodic reports may not contain all of the material factors that are important to you.  In addition, in light of these risks and uncertainties, the matters referred to in the forward-looking statements contained in this report may not in fact occur.  Accordingly, readers should not place undue reliance on those statements.

Item 2.  Unregistered Sales of Equity Securities and Use of Proceeds

Issuer Repurchases of Equity Securities

The following table summarizes the Company's repurchases of its common stock during the Quarterly Period ended April 2, 2022.1, 2023.

Fiscal Period 
Total Number of
Shares Purchased
  
Average Price
Paid Per Share
  
Total Number of Shares
Purchased as Part of Publicly
Announced Programs
  
Dollar Value of Shares that
May Yet be Purchased Under
the Program (in millions) (a)
  
Total Number of
Shares Purchased
  
Average Price
Paid Per Share
  
Total Number of Shares
Purchased as Part of Publicly
Announced Programs
  
Dollar Value of Shares that
May Yet be Purchased Under
the Program (in millions) (a)
 
January  164,100  $61.75   164,100  $990   80,000  $64.50   80,000  $859 
February  2,405,334   61.16   2,405,334   843   1,519,597   62.50   1,519,597   764 
March  2,459,076   58.05   2,459,076   700   944,808   58.06   944,808   710 
Total  5,028,510  $59.66   5,028,510  $700   2,544,405  $60.92   2,544,405  $710 

(a)All open market purchases during the quarter were made under the fiscal 20222023 authorization from our board of directors to purchase up to $1 billion of shares of common stock.  (See Note 12.)directors.

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Index


Item 6.  Exhibits

Exhibit No. Description of Exhibit
4.1
Indenture, among Berry Global, Inc., certain guarantors party thereto, U.S. Bank Trust Company, National Association, as Trustee and Collateral Agent, relating to the 5.50% First Priority Senior Secured Notes due 2028, dated March 30, 2023 (incorporated by reference to Exhibit 4.1 to the Company’s Current Report on Form 8-K filed on March 30, 2023).
4.2
Registration Rights Agreement, by and between Berry Global, Inc., Berry Global Group, Inc., each subsidiary of Berry Global, Inc. identified therein, and Citigroup Global Markets Inc., J.P. Morgan Securities LLC and Wells Fargo Securities, LLC, on behalf of themselves and as representatives of the initial purchasers, relating to the 5.50% First Priority Senior Secured Notes due 2028 (incorporated by reference to Exhibit 4.2 to the Company’s Current Report on Form 8-K filed on March 30, 2023).
22.1*
 Subsidiary GuarantorsGuarantors.
31.1*
 Rule 13a-14(a)/15d-14(a) Certification of the Chief Executive Officer.
31.2*
 Rule 13a-14(a)/15d-14(a) Certification of the Chief Financial Officer.
32.1**
 Section 1350 Certification of the Chief Executive Officer.
32.2**
 Section 1350 Certification of the Chief Financial Officer.
101.INS Inline XBRL Instance Document (the instance document does not appear in the Interactive Data File because its XBRL tags are embedded within the Inline XBRL document).
101.SCH Inline XBRL Taxonomy Extension Schema Document.
101.CAL Inline XBRL Taxonomy Extension Calculation Linkbase Document.
101.DEF Inline XBRL Taxonomy Extension Definition Linkbase Document.
101.LAB Inline XBRL Taxonomy Extension Label Linkbase Document.
101.PRE Inline XBRL Taxonomy Extension Presentation Linkbase Document.
104 Cover Page Interactive Date File (formatted as Inline XBRL and contained in Exhibit 101).

*Filed herewith
**Furnished herewith


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SIGNATURE

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.

 Berry Global Group, Inc. 
    
May 5, 20224, 2023By:/s/ Mark W. Miles 
  Mark W. Miles 
  Chief Financial Officer 

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