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.

On March 10, 2025, the Company signed a definitive agreement to sell Richard Bittner Business AG, an Austrian contract manufacturing business (the "Richard Bittner Business") to HBI Health & Beauty Innovations Limited; as a result, such assets were classified as held for sale. The assets associated with this business were reported within our CSCI segment. As of March 29, 2025, 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 $3.1 million, inclusive of a goodwill impairment charge of $1.2 million within our CSCI segment.

The assets and liabilities held for sale related to the Richard Bittner 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 Richard Bittner Business reported as held for sale as of March 29, 2025 totaled $22.3 million and $4.5 million, respectively.

The sale of the Richard Bittner Business was completed on April 11, 2025. Any gain (loss) on de-recognition will be recognized in the second quarter within Other (income) expense, net on the Condensed Consolidated Statement of Operations and is estimated to be minimal.