PERRIGO Co plc

NOTE 3 -ASSETS HELD FOR SALE

We classify assets as "held for sale" when, among other factors, management approves and commits to a formal plan of sale with the expectation the sale will be completed within one year. The net assets of the business held for sale are then recorded at the lower of their current carrying value and the fair market value, less costs to sell.

During the three months ended June 29, 2024, the Company exercised its put option right to sell our HRA Pharma Rare Diseases Business (the "Rare Diseases Business") to Esteve Healthcare S.L. ("ESTEVE"), and on July 3, 2024, the Company and ESTEVE entered into a purchase and sale agreement to sell the Rare Diseases Business; as a result, such assets were classified as held for sale. The assets associated with this business were reported within our CSCI segment. At June 29, 2024, we determined the carrying value of the net assets held for sale of this business exceeded their fair value less costs to sell, resulting in a total impairment charge of $34.1 million, inclusive of a goodwill impairment charge of $22.1 million.

The assets and liabilities held for sale related to the Rare Diseases Business were reported within Current assets held for sale and Current liabilities held for sale on the Condensed Consolidated Balance Sheets. Net of impairment charges, the assets and liabilities of the Rare Diseases Business reported as held for sale as of June 29, 2024 totaled $292.3 million and $51.5 million, respectively.

The sale of the Rare Diseases Business was completed on July 10, 2024. Gain (loss) on de-recognition will be recognized in the third quarter within Other expense (income), net on the Condensed Consolidated Statement of Operations and is estimated to be minimal.