PERRIGO Co plc
For the period ended Jun 28, 2025. Filed Aug 6, 2025.
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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 28, 2025 · Filed Aug 6, 2025
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Fair Value Measurements
NOTE 9 -FAIR VALUE MEASUREMENTS
The table below summarizes the valuation of our financial instruments carried at fair value by the applicable pricing categories (in millions):
| June 28, 2025 | December 31, 2024 | |||||
|---|---|---|---|---|---|---|
| Measured at fair value on a recurring basis: | Level 1 | Level 2 | Level 3 | Level 1 | Level 2 | Level 3 |
| Assets: | ||||||
| Foreign currency forward contracts | $— | $7.0 | $— | $— | $5.5 | $— |
| Cross-currency swaps | — | — | — | — | 14.2 | — |
| Interest rate swap agreements | — | 3.5 | — | — | 9.3 | — |
| Total assets | $— | $10.5 | $— | $— | $29.0 | $— |
| Liabilities: | ||||||
| Foreign currency forward contracts | $— | $5.8 | $— | $— | $5.6 | $— |
| Cross-currency swaps | — | 273.5 | — | — | 46.8 | — |
| Interest rate swap agreements | — | 34.3 | — | — | 22.6 | — |
| Total liabilities | $— | $313.6 | $— | $— | $75.0 | $— |
| Measured at fair value on a non-recurring basis: | ||||||
| Assets: | ||||||
| Contingent consideration(1) | $— | $— | $— | $— | $— | $34.5 |
| Definite-lived intangible assets(2) | — | — | 5.5 | — | — | 8.2 |
| Total assets | $— | $— | $5.5 | $— | $— | $42.7 |
(1) During the year ended December 31, 2024, contingent consideration was recognized as a result of the divestiture of the Rare Diseases Business.
(2) During the three months ended June 28, 2025, we assessed the fair value of our Prevacid® branded product at $5.5 million, resulting in an asset impairment charge of $1.5 million. During the three months ended December 31, 2024, we assessed the fair value of our Prevacid® branded product at $8.2 million, resulting in an asset impairment charge of $38.6 million.
Note 9
There were no transfers within Level 3 fair value measurements during the three and six months ended June 28, 2025 or the year ended December 31, 2024 (refer to Note 10 for a discussion of derivatives).
Non-recurring Fair Value Measurements
The non-recurring fair values represent only those assets whose carrying values were adjusted to fair value during the reporting period.
Prevacid® Branded Product
During the three months ended June 28, 2025, we measured the impairment of our Prevacid® branded product, a definite-lived intangible asset. We utilized a discounted cash flow technique to estimate the fair value of the asset. Significant valuation inputs and assumptions relate to our projected future contribution margin, which include our estimated market share at planned investment levels and the expected selling price. We concluded the fair value was $5.5 million.
Fixed Rate Long-term Debt
Our fixed rate long-term debt consisted of the following (in millions):
| June 28, 2025 | December 31, 2024 | |
|---|---|---|
| Public Bonds | Level 1 | Level 1 |
| Carrying value (excluding discount) | $2,269.6 | $2,221.8 |
| Fair value | $2,200.0 | $2,083.9 |
The fair values of our public bonds for all periods were based on quoted market prices.
The carrying amounts of our other financial instruments, consisting of cash and cash equivalents, accounts receivable, accounts payable, short-term debt, revolving credit agreements, and variable rate long-term debt, approximate their fair value.
The text of this filing, as the company filed it with the SEC, without its images or exhibits. This is not investment advice.