PERRIGO Co plc
For the period ended Mar 29, 2025. Filed May 7, 2025.
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Mar 29, 2025 · Filed May 7, 2025
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Restructuring Charges
NOTE 14 -RESTRUCTURING CHARGES
We periodically take action to reduce redundant expenses and improve operating efficiencies. Restructuring activity includes severance, lease exit costs, asset impairments, and related consulting fees. The following reflects our restructuring activity (in millions):
| Three Months Ended | ||||||
|---|---|---|---|---|---|---|
| March 29, 2025 | ||||||
| Supply Chain Reinvention | HRA Pharma Integration | Project Energize | Nutrition Network Optimization | Other Initiatives | Total | |
| Beginning balance | $2.3 | $1.6 | $27.9 | $— | $1.0 | $32.8 |
| Additional charges | 4.7 | — | 8.2 | 16.5 | — | 29.4 |
| Payments | (6.2) | — | (9.4) | — | (1.0) | (16.6) |
| Ending balance | $0.8 | $1.6 | $26.7 | $16.5 | $— | $45.6 |
| Three Months Ended | |||||
|---|---|---|---|---|---|
| March 30, 2024 | |||||
| Supply Chain Reinvention | HRA Pharma Integration | Project Energize | Other Initiatives | Total | |
| Beginning balance | $0.7 | $6.8 | 2.9 | $1.8 | $12.2 |
| Additional charges | 2.6 | 0.1 | 41.4 | 0.2 | 44.3 |
| Payments | (2.4) | (0.3) | (6.9) | (1.1) | (10.7) |
| Non-cash adjustments | — | — | (4.8) | — | (4.8) |
| Ending balance | $0.9 | $6.6 | $32.6 | $0.9 | $41.0 |
The charges incurred during the three months ended March 29, 2025 were primarily associated with employee separation costs as a result of actions taken to optimize our nutrition network. The charges incurred during the three months ended March 30, 2024 were primarily associated with actions taken on Project Energize activities associated with employee separation and consulting fees.
Of the amount recorded during the three months ended March 29, 2025, $3.8 million was related to our CSCI segment and $20.1 million was related to our CSCA segment, and $5.5 million was related to our Unallocated segment. For CSCA, amounts were due primarily to Nutrition Network Optimization while CSCI and Unallocated segment amounts were due primarily to Project Energize. Of the amount recorded during the three months ended March 30, 2024, $15.5 million was related to our CSCI segment and $16.5 million was related to our CSCA
Note 14
segment, and $12.3 million was related to our Unallocated segment. For all segments, amounts were due primarily to Project Energize.
There were no other material restructuring programs for the periods presented. All charges are recorded in Restructuring expense on the Condensed Consolidated Statements of Operations. The remaining $45.6 million liability for employee severance benefits and consulting fees is expected to be mostly paid within the next year, with the exception of the entirety of all charges recorded for the Nutrition Network Optimization, which are recorded as a long term liability on the Condensed Consolidated Balance Sheets as they are not currently expected to be paid out until 2027.
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