PERRIGO Co plc
For the period ended Jun 27, 2026. Filed Aug 5, 2026.
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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 27, 2026 · Filed Aug 5, 2026
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Segment and Geographic Information
Note 17
NOTE 17 -SEGMENT AND GEOGRAPHIC INFORMATION
During the first quarter of 2026, we implemented changes to our organizational structure and internal management reporting to better align with how the CODM evaluates segment performance and allocates resources going forward.
Our reporting segments are as follows:
| Reporting Segment | Product Categories |
|---|---|
| Self Care | Includes over-the-counter health and wellness products intended for consumer self-treatment of common conditions, such as pain & sleep, upper respiratory, digestive health and healthy lifestyle products including vitamins, minerals, and supplements and oral electrolyte beverages |
| Specialty Care | Includes branded and specialty consumer health products that address more targeted or complex self-care needs, including women's health and skin health offerings, such as skin healing and insect repellant |
| Infant Formula | Comprised of the infant formula product category, which includes nutrition products designed to meet the dietary needs of infants |
Our Oral Care product category and Other product category, which includes our Dermacosmetics business (through its April 30, 2026 divestment), are together disclosed as “All Other.” We have reflected this segment change in all historical periods presented.
In the first quarter of 2026, following changes to our segments, our CODM reevaluated and changed the primary measure utilized to evaluate segment profitability from segment operating income to segment adjusted operating income. We have reflected this change from segment operating income to segment adjusted operating income in all historical periods presented.
For each segment, the CODM uses this information to assist in evaluating underlying trends, to monitor budget and forecast versus actual results, to make investment decisions to allocate resources both in total, and between the segments, and to make key segment personnel decisions. Segment adjusted operating income is based on Operating income, excluding amortization expense, acquisition and integration-related charges and contingent consideration, impairment charges, Infant Formula remediation, (gain) loss on divestitures and brand sales, loss on debt extinguishment, unusual litigation, and restructuring charges and other termination benefits (referred to herein as “Segment operating income (loss)”), as the CODM excludes these items in assessing segment financial performance. General corporate/unallocated expenses, which include expenses related to treasury, legal operations, and certain other expenses are not allocated to the segments. In assessing segment performance and managing operations, the CODM reviews total inventory by segment but does not review segment assets in total, accordingly certain asset related disclosures are omitted.
The tables below show select financial measures by reporting segment(1) (in millions):
| Three Months Ended | Six Months Ended | |||
|---|---|---|---|---|
| Net Sales | June 27, 2026 | June 28, 2025 | June 27, 2026 | June 28, 2025 |
| Self Care | $576.6 | $598.6 | $1,119.9 | $1,212.8 |
| Specialty Care | 226.6 | 233.1 | 433.6 | 432.2 |
| Infant Formula | 100.9 | 82.0 | 190.6 | 169.8 |
| Reporting segment net sales | 904.1 | 913.6 | 1,744.2 | 1,814.8 |
| All Other | 118.6 | 142.7 | 247.8 | 285.4 |
| Total Consolidated net sales | $1,022.8 | $1,056.3 | $1,992.0 | $2,100.2 |
Note 17
| Three Months Ended June 27, 2026 | |||||
|---|---|---|---|---|---|
| Self Care · Specialty Care · Infant Formula · Reporting Segments Total | |||||
| Reporting segment net sales(2) | 576.6 | $226.6 | $100.9 | $904.1 | |
| Adjusted cost of sales | 402.3 | 106.1 | 80.2 | ||
| Adjusted other expense items(3) | 95.6 | 72.7 | 16.8 | ||
| Segment operating income | $78.7 | $47.8 | $4.0 | $130.5 | |
| Reconciliation to Income from continuing operations before income taxes: | |||||
| All Other adjusted operating income | 25.8 | ||||
| Unallocated expense | (31.8) | ||||
| Amortization expense related primarily to acquired intangible assets | (54.5) | ||||
| Impairment charges(4) | (1.0) | ||||
| Restructuring charges and other termination benefits | (14.4) | ||||
| Unusual litigation | (12.4) | ||||
| Other(5) | (18.8) | ||||
| Operating income | $23.5 | ||||
| Six Months Ended June 27, 2026 | |||||
|---|---|---|---|---|---|
| Self Care · Specialty Care · Infant Formula · Reporting Segments Total | |||||
| Reporting segment net sales(2) | $1,119.9 | $433.6 | $190.6 | $1,744.2 | |
| Adjusted cost of sales | 763.5 | 198.9 | 159.2 | ||
| Adjusted other expense items(3) | 209.2 | 131.6 | 34.8 | ||
| Segment operating income (loss) | $147.3 | $103.2 | $(3.5) | $247.0 | |
| Reconciliation to Income from continuing operations before income taxes: | |||||
| All Other adjusted operating income | 57.6 | ||||
| Unallocated expense | (67.2) | ||||
| Amortization expense related primarily to acquired intangible assets | (109.0) | ||||
| Impairment charges(4) | (331.8) | ||||
| Restructuring charges and other termination benefits | (89.5) | ||||
| Unusual litigation | (28.9) | ||||
| Other(5) | (27.0) | ||||
| Operating loss | $(348.9) | ||||
| Three Months Ended June 28, 2025 | ||||
|---|---|---|---|---|
| Self Care | Specialty Care | Infant Formula | Reporting Segments Total | |
| Reporting segment net sales(2) | 598.6 | $233.1 | $82.0 | $913.6 |
| Adjusted cost of sales | 397.1 | 98.1 | 71.2 | |
| Adjusted other expense items(3) | 107.6 | 68.7 | 23.0 | |
| Segment operating income (loss) | $93.9 | $66.3 | $(12.2) | $148.0 |
| Reconciliation to Income from continuing operations before income taxes: | ||||
| All Other adjusted operating income | 25.7 | |||
| Unallocated expense | (38.5) | |||
| Amortization expense related primarily to acquired intangible assets | (56.8) | |||
| Impairment charges(4) | (1.5) | |||
| Restructuring charges and other termination benefits | (8.7) | |||
| Unusual litigation | (15.4) | |||
| Other(5) | (7.4) | |||
| Operating income | $45.4 | |||
Note 17
| Six Months Ended June 28, 2025 | ||||
|---|---|---|---|---|
| Self Care | Specialty Care | Infant Formula | Reporting Segments Total | |
| Reporting segment net sales(2) | $1,212.8 | $432.2 | $169.8 | $1,814.8 |
| Adjusted cost of sales | 785.4 | 180.2 | 126.4 | |
| Adjusted other expense items(3) | 220.7 | 143.6 | 45.0 | |
| Segment operating income (loss) | $206.7 | $108.4 | $(1.6) | $313.5 |
| Reconciliation to Income from continuing operations before income taxes: | ||||
| All Other adjusted operating income | 46.6 | |||
| Unallocated expense | (78.3) | |||
| Amortization expense related primarily to acquired intangible assets | (111.8) | |||
| Impairment charges(4) | (4.6) | |||
| Infant formula remediation | (0.9) | |||
| Restructuring charges and other termination benefits | (38.1) | |||
| Unusual litigation | (24.3) | |||
| Other(5) | (9.8) | |||
| Operating income | $92.3 | |||
(1) Amounts may not add or recalculate due to rounding.
(2) See table above for reconciliation to Consolidated net sales.
(3) Adjusted other expense items include distribution, research and development, and selling and administrative expenses.
(4) During the three months ended June 27, 2026, we determined the carrying value of an in-process R&D asset was impaired by $1.0 million. During the six months ended June 27, 2026, we also determined the carrying value of our reporting units exceeded their estimated fair value and recorded a goodwill impairment charge of $330.8 million. During the three months ended June 28, 2025, we determined the carrying value of our Prevacid® branded product was impaired by $1.5 million. During the six months ended June 28, 2025, we also determined the carrying value of the Richard Bittner Business net assets held for sale 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.
(5) Other pre-tax adjustments impacting operating income for the three months ended June 27, 2026 includes $3.4 million of professional consulting fees for potential divestiture activity and other legal matters and $15.4 million of accelerated depreciation as a result of a partial plant shut-down to rationalize capacity as part of Nutrition Network Optimization. Other pre-tax adjustments impacting operating income for the six months ended June 27, 2026 includes $11.2 million of professional consulting fees for potential and actual divestiture activity, partially offset by $3.1 million of favorable hedging activity related to the Dermacosmetics Business divestiture, and $18.9 million of accelerated depreciation as part of Nutrition Network Optimization Program. Other pre-tax adjustments for the three months ended June 28, 2025 are related to $4.5 million of accelerated depreciation as a result of Nutrition Network Optimization and $2.8 million of professional consulting fees for divestiture activity. Other pre-tax adjustments for the six months ended June 28, 2025 include expenses of $5.3 million related to professional consulting fees for divestiture activity and $4.5 million related to accelerated depreciation as a result of Nutrition Network Optimization.
The tables below show select financial measures by reporting segment(1) (in millions):
| Inventory | June 27, 2026 | December 31, 2025 |
|---|---|---|
| Self Care | $668.8 | $695.9 |
| Specialty Care | 133.4 | 146.1 |
| Infant Formula | 170.4 | 188.4 |
| All Other | 91.7 | 118.6 |
| Total inventory | $1,064.5 | $1,149.0 |
| Three Months Ended | Six Months Ended | |||
|---|---|---|---|---|
| Depreciation | June 27, 2026 | June 28, 2025 | June 27, 2026 | June 28, 2025 |
| Self Care | $13.5 | $15.4 | $27.0 | $30.7 |
| Specialty Care | 4.3 | 3.9 | 7.4 | 7.8 |
| Infant Formula | 19.5 | 8.4 | 27.2 | 12.4 |
| All Other | 4.2 | 1.6 | 8.4 | 3.9 |
| Total depreciation | $41.4 | $29.3 | $70.1 | $54.8 |
(1) Amounts may not add or recalculate due to rounding.
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