I. Commitments and Contingencies

Contractual Obligations

The Company expects to pay $117.9 million of these obligations in the remainder of fiscal 2026, $74.5 million in fiscal 2027, $16.4 million in fiscal 2028, and $40.8 million in fiscal 2029 and thereafter. The commitment amounts exclude any impact related to the tariff programs announcement by the U.S. government.

Litigation

The Company is party to legal proceedings and claims, including class action claims, where significant damages are asserted against it. Given the inherent uncertainty of litigation, it is possible that the Company could incur liabilities as a consequence of these claims, which may or may not have a material adverse effect on the Company’s financial condition or the results of its operations. The Company accrues loss contingencies if, in the opinion of management and its legal counsel, the risk of loss is probable and the loss can be estimated. Material pending legal proceedings are discussed below.

Supplier Dispute. As previously reported, including in the Company's Annual Report on Form 10-K for the year ended December 27, 2025, on December 31, 2022, Ardagh Metal Packaging USA Corp. ("Ardagh") filed an action against the Company alleging, among other things, that the Company had failed or would fail to purchase contractual minimum volumes of certain aluminum beverage can containers during the 2021 through 2026 periods. The trial commenced on March 23, 2026 and, on April 6, 2026, a jury returned a verdict awarding damages to Ardagh.

As a result of the verdict, during the first quarter of 2026, the Company recorded a non-recurring pre-tax litigation expense of $175.5 million and accrued $36.5 million of estimated pre-judgment interest expense. In addition, the Company recorded $4.0 million of legal fees within general and administrative expenses. The total pre-tax impact of these items was $216.0 million.

On May 26, 2026, the court entered an amended final judgment awarding damages of $175.5 million and determining pre-judgment interest of $15.5 million. As a result, during the second quarter of 2026, the Company recorded a $21.1 million reduction in pre-judgment interest expense and $1.7 million of post-judgment interest expense, resulting in a net pre-tax benefit of $19.4 million within litigation expense. In addition, the Company recorded $1.4 million of associated legal fees, which were included in general and administrative expenses. The net pre-tax benefit from these items in the second quarter of 2026 was $18.0 million.

During the third quarter of 2026, the Company recorded an additional $1.8 million of post-judgment interest expense within litigation expense and $0.4 million of associated legal fees within general and administrative expenses. The total pre-tax impact of these items was $2.2 million.

Through September 26, 2026, the cumulative pre-tax impact of the Ardagh litigation was expense of $200.3 million, consisting of $175.5 million of damages, $19.0 million of net pre- and post-judgment interest expense, and $5.8 million of legal fees.

The Company denies that it breached the terms of the parties’ contract and intends to pursue all available post‑trial motions and appellate remedies. To that end, the Company filed a post-trial motion on June 8, 2026, Ardagh responded on July 8, 2026, and the Company filed its reply on July 23, 2026. The Company also filed a Notice of Appeal which is stayed pending the district court’s ruling on the Company’s post trial motion.

The Company cannot estimate when or if damages or interest will ultimately be paid or when this matter will ultimately be resolved.