PERRIGO Co plc
For the period ended Jun 29, 2024. Filed Aug 2, 2024.
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A company's report for each of its first three quarters. The financial statements are not audited. It shows how the business has moved since the last annual report, and what management says changed.
Jun 29, 2024 · Filed Aug 2, 2024
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Goodwill and Intangible Assets
NOTE 8 -GOODWILL AND INTANGIBLE ASSETS
Goodwill
Changes in the carrying amount of goodwill, by reportable segment, were as follows (in millions):
| December 31, 2023 | Impairments | Transfer to assets held-for-sale | Currency translation adjustments | June 29, 2024 | |
|---|---|---|---|---|---|
| CSCA(1) | $2,080.9 | $— | $— | $(2.3) | $2,078.6 |
| CSCI(2) | 1,448.2 | (22.1) | (93.1) | (42.0) | 1,291.0 |
| Total goodwill | $3,529.1 | $(22.1) | $(93.1) | $(44.3) | $3,369.6 |
(1) We had accumulated goodwill impairments of $6.1 million as of June 29, 2024 and December 31, 2023.
(2) We had accumulated goodwill impairments of $990.5 million and $968.4 million as of June 29, 2024 and December 31, 2023, respectively.
Rare Diseases Business Goodwill
On April 25, 2024, we announced the receipt of a binding offer from ESTEVE to acquire the Rare Diseases Business within our CSCI segment. As a result, we determined an impairment indicator existed and prepared a quantitative goodwill impairment test. We determined the carrying value of this business exceeded the fair value and recorded an impairment of $22.1 million within our CSCI segment during the three months ended June 29, 2024 (Refer to Note 3 and Note 9).
Note 8
Intangible Assets
Intangible assets and related accumulated amortization consisted of the following (in millions):
| June 29, 2024 | December 31, 2023 | |||
|---|---|---|---|---|
| Gross | AccumulatedAmortization | Gross | AccumulatedAmortization | |
| Indefinite-lived intangibles:(1) | ||||
| Trademarks, trade names, and brands | $3.3 | $— | $3.4 | $— |
| In-process research and development | 1.9 | — | 1.9 | — |
| Total indefinite-lived intangibles | $5.2 | $— | $5.3 | $— |
| Definite-lived intangibles: | ||||
| Distribution and license agreements and supply agreements | $89.2 | $58.1 | $90.8 | $57.5 |
| Developed product technology, formulations, and product rights | 355.0 | 230.0 | 534.0 | 238.4 |
| Customer relationships and distribution networks | 1,821.3 | 1,127.7 | 1,868.1 | 1,108.9 |
| Trademarks, trade names, and brands | 2,437.1 | 653.2 | 2,502.0 | 609.3 |
| Non-compete agreements | 2.1 | 2.1 | 2.1 | 2.1 |
| Total definite-lived intangibles | $4,704.7 | $2,071.1 | $4,997.0 | $2,016.2 |
| Total intangible assets | $4,709.9 | $2,071.1 | $5,002.3 | $2,016.2 |
(1) Certain intangible assets are denominated in currencies other than U.S. dollar; therefore, their gross and net carrying values are subject to foreign currency movements.
As a result of the Company exercising its put option right to sell the Rare Diseases Business, during the three months ended June 29, 2024, we reclassified $162.0 million net book value of associated intangible assets to Current assets held for sale (Refer to Note 3).
We recorded amortization expense of $57.5 million and $115.9 million for the three and six months ended June 29, 2024, respectively, and $69.3 million and $134.7 million for the three and six months ended July 1, 2023, respectively.
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