000158536412/312022Q2FALSEhttp://fasb.org/us-gaap/2022#OtherAssetsNoncurrenthttp://fasb.org/us-gaap/2022#OtherAssetsNoncurrenthttp://fasb.org/us-gaap/2022#AccruedLiabilitiesCurrenthttp://fasb.org/us-gaap/2022#AccruedLiabilitiesCurrenthttp://fasb.org/us-gaap/2022#LongTermDebtCurrenthttp://fasb.org/us-gaap/2022#LongTermDebtCurrenthttp://fasb.org/us-gaap/2022#OtherLiabilitiesNoncurrenthttp://fasb.org/us-gaap/2022#OtherLiabilitiesNoncurrenthttp://fasb.org/us-gaap/2022#LongTermDebtNoncurrenthttp://fasb.org/us-gaap/2022#LongTermDebtNoncurrentP5YP5YP7Y5.104500015853642022-01-012022-07-020001585364prgo:OrdinaryShares0001ParValueMember2022-01-012022-07-020001585364prgo:A3.9seniornotedue2024Member2022-01-012022-07-020001585364prgo:A4.375seniornotedueMarch152026Member2022-01-012022-07-020001585364prgo:A44SeniorNotesDueJune152030Member2022-01-012022-07-020001585364prgo:A5.30UnsecuredSeniorNotesdueNovember152043Member2022-01-012022-07-020001585364prgo:A4.9SeniorLoandue2044Member2022-01-012022-07-0200015853642022-08-05xbrli:shares00015853642022-04-032022-07-02iso4217:USD00015853642021-04-042021-07-0300015853642021-01-012021-07-03iso4217:USDxbrli:shares00015853642022-07-0200015853642021-12-31iso4217:EURxbrli:shares0001585364us-gaap:CommonStockMember2020-12-310001585364us-gaap:AccumulatedOtherComprehensiveIncomeMember2020-12-310001585364us-gaap:RetainedEarningsMember2020-12-3100015853642020-12-310001585364us-gaap:RetainedEarningsMember2021-01-012021-04-0300015853642021-01-012021-04-030001585364us-gaap:AccumulatedOtherComprehensiveIncomeMember2021-01-012021-04-030001585364us-gaap:CommonStockMember2021-01-012021-04-030001585364us-gaap:CommonStockMember2021-04-030001585364us-gaap:AccumulatedOtherComprehensiveIncomeMember2021-04-030001585364us-gaap:RetainedEarningsMember2021-04-0300015853642021-04-030001585364us-gaap:RetainedEarningsMember2021-04-042021-07-030001585364us-gaap:AccumulatedOtherComprehensiveIncomeMember2021-04-042021-07-030001585364us-gaap:CommonStockMember2021-04-042021-07-030001585364us-gaap:CommonStockMember2021-07-030001585364us-gaap:AccumulatedOtherComprehensiveIncomeMember2021-07-030001585364us-gaap:RetainedEarningsMember2021-07-0300015853642021-07-030001585364us-gaap:CommonStockMember2021-12-310001585364us-gaap:AccumulatedOtherComprehensiveIncomeMember2021-12-310001585364us-gaap:RetainedEarningsMember2021-12-310001585364us-gaap:RetainedEarningsMember2022-01-012022-04-0200015853642022-01-012022-04-020001585364us-gaap:AccumulatedOtherComprehensiveIncomeMember2022-01-012022-04-020001585364us-gaap:CommonStockMember2022-01-012022-04-020001585364us-gaap:CommonStockMember2022-04-020001585364us-gaap:AccumulatedOtherComprehensiveIncomeMember2022-04-020001585364us-gaap:RetainedEarningsMember2022-04-0200015853642022-04-020001585364us-gaap:RetainedEarningsMember2022-04-032022-07-020001585364us-gaap:AccumulatedOtherComprehensiveIncomeMember2022-04-032022-07-020001585364us-gaap:CommonStockMember2022-04-032022-07-020001585364us-gaap:CommonStockMember2022-07-020001585364us-gaap:AccumulatedOtherComprehensiveIncomeMember2022-07-020001585364us-gaap:RetainedEarningsMember2022-07-020001585364country:US2022-04-032022-07-020001585364country:US2021-04-042021-07-030001585364country:US2022-01-012022-07-020001585364country:US2021-01-012021-07-030001585364srt:EuropeMember2022-04-032022-07-020001585364srt:EuropeMember2021-04-042021-07-030001585364srt:EuropeMember2022-01-012022-07-020001585364srt:EuropeMember2021-01-012021-07-030001585364prgo:OtherGeographicalAreasMember2022-04-032022-07-020001585364prgo:OtherGeographicalAreasMember2021-04-042021-07-030001585364prgo:OtherGeographicalAreasMember2022-01-012022-07-020001585364prgo:OtherGeographicalAreasMember2021-01-012021-07-030001585364country:IE2022-04-032022-07-020001585364country:IE2022-01-012022-07-020001585364country:IE2021-04-042021-07-030001585364country:IE2021-01-012021-07-030001585364prgo:UpperRespiratoryMemberprgo:ConsumerSelfCareAmericasMember2022-04-032022-07-020001585364prgo:UpperRespiratoryMemberprgo:ConsumerSelfCareAmericasMember2021-04-042021-07-030001585364prgo:UpperRespiratoryMemberprgo:ConsumerSelfCareAmericasMember2022-01-012022-07-020001585364prgo:UpperRespiratoryMemberprgo:ConsumerSelfCareAmericasMember2021-01-012021-07-030001585364prgo:NutritionMemberprgo:ConsumerSelfCareAmericasMember2022-04-032022-07-020001585364prgo:NutritionMemberprgo:ConsumerSelfCareAmericasMember2021-04-042021-07-030001585364prgo:NutritionMemberprgo:ConsumerSelfCareAmericasMember2022-01-012022-07-020001585364prgo:NutritionMemberprgo:ConsumerSelfCareAmericasMember2021-01-012021-07-030001585364prgo:DigestiveHealthMemberprgo:ConsumerSelfCareAmericasMember2022-04-032022-07-020001585364prgo:DigestiveHealthMemberprgo:ConsumerSelfCareAmericasMember2021-04-042021-07-030001585364prgo:DigestiveHealthMemberprgo:ConsumerSelfCareAmericasMember2022-01-012022-07-020001585364prgo:DigestiveHealthMemberprgo:ConsumerSelfCareAmericasMember2021-01-012021-07-030001585364prgo:PainandSleepaidsMemberprgo:ConsumerSelfCareAmericasMember2022-04-032022-07-020001585364prgo:PainandSleepaidsMemberprgo:ConsumerSelfCareAmericasMember2021-04-042021-07-030001585364prgo:PainandSleepaidsMemberprgo:ConsumerSelfCareAmericasMember2022-01-012022-07-020001585364prgo:PainandSleepaidsMemberprgo:ConsumerSelfCareAmericasMember2021-01-012021-07-030001585364prgo:OralSelfcareMemberprgo:ConsumerSelfCareAmericasMember2022-04-032022-07-020001585364prgo:OralSelfcareMemberprgo:ConsumerSelfCareAmericasMember2021-04-042021-07-030001585364prgo:OralSelfcareMemberprgo:ConsumerSelfCareAmericasMember2022-01-012022-07-020001585364prgo:OralSelfcareMemberprgo:ConsumerSelfCareAmericasMember2021-01-012021-07-030001585364prgo:HealthyLifestyleMemberprgo:ConsumerSelfCareAmericasMember2022-04-032022-07-020001585364prgo:HealthyLifestyleMemberprgo:ConsumerSelfCareAmericasMember2021-04-042021-07-030001585364prgo:HealthyLifestyleMemberprgo:ConsumerSelfCareAmericasMember2022-01-012022-07-020001585364prgo:HealthyLifestyleMemberprgo:ConsumerSelfCareAmericasMember2021-01-012021-07-030001585364prgo:SkinCareMemberprgo:ConsumerSelfCareAmericasMember2022-04-032022-07-020001585364prgo:SkinCareMemberprgo:ConsumerSelfCareAmericasMember2021-04-042021-07-030001585364prgo:SkinCareMemberprgo:ConsumerSelfCareAmericasMember2022-01-012022-07-020001585364prgo:SkinCareMemberprgo:ConsumerSelfCareAmericasMember2021-01-012021-07-030001585364prgo:WomensHealthMemberprgo:ConsumerSelfCareAmericasMember2022-04-032022-07-020001585364prgo:WomensHealthMemberprgo:ConsumerSelfCareAmericasMember2021-04-042021-07-030001585364prgo:WomensHealthMemberprgo:ConsumerSelfCareAmericasMember2022-01-012022-07-020001585364prgo:WomensHealthMemberprgo:ConsumerSelfCareAmericasMember2021-01-012021-07-030001585364prgo:VitaminsMineralsandSupplementsMemberprgo:ConsumerSelfCareAmericasMember2022-04-032022-07-020001585364prgo:VitaminsMineralsandSupplementsMemberprgo:ConsumerSelfCareAmericasMember2021-04-042021-07-030001585364prgo:VitaminsMineralsandSupplementsMemberprgo:ConsumerSelfCareAmericasMember2022-01-012022-07-020001585364prgo:VitaminsMineralsandSupplementsMemberprgo:ConsumerSelfCareAmericasMember2021-01-012021-07-030001585364prgo:OtherCSCAMemberprgo:ConsumerSelfCareAmericasMember2022-04-032022-07-020001585364prgo:OtherCSCAMemberprgo:ConsumerSelfCareAmericasMember2021-04-042021-07-030001585364prgo:OtherCSCAMemberprgo:ConsumerSelfCareAmericasMember2022-01-012022-07-020001585364prgo:OtherCSCAMemberprgo:ConsumerSelfCareAmericasMember2021-01-012021-07-030001585364prgo:ConsumerSelfCareAmericasMember2022-04-032022-07-020001585364prgo:ConsumerSelfCareAmericasMember2021-04-042021-07-030001585364prgo:ConsumerSelfCareAmericasMember2022-01-012022-07-020001585364prgo:ConsumerSelfCareAmericasMember2021-01-012021-07-030001585364prgo:SkinCareMemberprgo:ConsumerSelfCareInternationalMember2022-04-032022-07-020001585364prgo:SkinCareMemberprgo:ConsumerSelfCareInternationalMember2021-04-042021-07-030001585364prgo:SkinCareMemberprgo:ConsumerSelfCareInternationalMember2022-01-012022-07-020001585364prgo:SkinCareMemberprgo:ConsumerSelfCareInternationalMember2021-01-012021-07-030001585364prgo:UpperRespiratoryMemberprgo:ConsumerSelfCareInternationalMember2022-04-032022-07-020001585364prgo:UpperRespiratoryMemberprgo:ConsumerSelfCareInternationalMember2021-04-042021-07-030001585364prgo:UpperRespiratoryMemberprgo:ConsumerSelfCareInternationalMember2022-01-012022-07-020001585364prgo:UpperRespiratoryMemberprgo:ConsumerSelfCareInternationalMember2021-01-012021-07-030001585364prgo:ConsumerSelfCareInternationalMemberprgo:PainandSleepaidsMember2022-04-032022-07-020001585364prgo:ConsumerSelfCareInternationalMemberprgo:PainandSleepaidsMember2021-04-042021-07-030001585364prgo:ConsumerSelfCareInternationalMemberprgo:PainandSleepaidsMember2022-01-012022-07-020001585364prgo:ConsumerSelfCareInternationalMemberprgo:PainandSleepaidsMember2021-01-012021-07-030001585364prgo:ConsumerSelfCareInternationalMemberprgo:VitaminsMineralsandSupplementsMember2022-04-032022-07-020001585364prgo:ConsumerSelfCareInternationalMemberprgo:VitaminsMineralsandSupplementsMember2021-04-042021-07-030001585364prgo:ConsumerSelfCareInternationalMemberprgo:VitaminsMineralsandSupplementsMember2022-01-012022-07-020001585364prgo:ConsumerSelfCareInternationalMemberprgo:VitaminsMineralsandSupplementsMember2021-01-012021-07-030001585364prgo:ConsumerSelfCareInternationalMemberprgo:HealthyLifestyleMember2022-04-032022-07-020001585364prgo:ConsumerSelfCareInternationalMemberprgo:HealthyLifestyleMember2021-04-042021-07-030001585364prgo:ConsumerSelfCareInternationalMemberprgo:HealthyLifestyleMember2022-01-012022-07-020001585364prgo:ConsumerSelfCareInternationalMemberprgo:HealthyLifestyleMember2021-01-012021-07-030001585364prgo:ConsumerSelfCareInternationalMemberprgo:WomensHealthMember2022-04-032022-07-020001585364prgo:ConsumerSelfCareInternationalMemberprgo:WomensHealthMember2021-04-042021-07-030001585364prgo:ConsumerSelfCareInternationalMemberprgo:WomensHealthMember2022-01-012022-07-020001585364prgo:ConsumerSelfCareInternationalMemberprgo:WomensHealthMember2021-01-012021-07-030001585364prgo:ConsumerSelfCareInternationalMemberprgo:OralSelfcareMember2022-04-032022-07-020001585364prgo:ConsumerSelfCareInternationalMemberprgo:OralSelfcareMember2021-04-042021-07-030001585364prgo:ConsumerSelfCareInternationalMemberprgo:OralSelfcareMember2022-01-012022-07-020001585364prgo:ConsumerSelfCareInternationalMemberprgo:OralSelfcareMember2021-01-012021-07-030001585364prgo:ConsumerSelfCareInternationalMemberprgo:DigestiveHealthMember2022-04-032022-07-020001585364prgo:ConsumerSelfCareInternationalMemberprgo:DigestiveHealthMember2021-04-042021-07-030001585364prgo:ConsumerSelfCareInternationalMemberprgo:DigestiveHealthMember2022-01-012022-07-020001585364prgo:ConsumerSelfCareInternationalMemberprgo:DigestiveHealthMember2021-01-012021-07-030001585364prgo:ConsumerSelfCareInternationalMemberprgo:OtherCSCIMember2022-04-032022-07-020001585364prgo:ConsumerSelfCareInternationalMemberprgo:OtherCSCIMember2021-04-042021-07-030001585364prgo:ConsumerSelfCareInternationalMemberprgo:OtherCSCIMember2022-01-012022-07-020001585364prgo:ConsumerSelfCareInternationalMemberprgo:OtherCSCIMember2021-01-012021-07-030001585364prgo:ConsumerSelfCareInternationalMember2022-04-032022-07-020001585364prgo:ConsumerSelfCareInternationalMember2021-04-042021-07-030001585364prgo:ConsumerSelfCareInternationalMember2022-01-012022-07-020001585364prgo:ConsumerSelfCareInternationalMember2021-01-012021-07-030001585364prgo:ContractManufacturingMember2022-04-032022-07-020001585364prgo:ContractManufacturingMember2022-01-012022-07-020001585364prgo:ContractManufacturingMember2021-04-042021-07-030001585364prgo:ContractManufacturingMember2021-01-012021-07-030001585364prgo:HRAPharmaMember2022-04-29xbrli:pure0001585364prgo:HRAPharmaMember2022-04-292022-04-29iso4217:EUR0001585364prgo:HRAPharmaMember2022-01-012022-07-020001585364prgo:HRAPharmaMember2022-04-032022-07-020001585364us-gaap:TrademarksAndTradeNamesMemberprgo:HRAPharmaMember2022-04-290001585364prgo:HRAPharmaMemberus-gaap:DevelopedTechnologyRightsMember2022-04-290001585364prgo:HRAPharmaMemberprgo:DistributionNetworksMember2022-04-290001585364prgo:HRAPharmaMemberus-gaap:InProcessResearchAndDevelopmentMember2022-04-290001585364us-gaap:TrademarksAndTradeNamesMemberprgo:HRAPharmaMembersrt:MinimumMember2022-04-292022-04-290001585364srt:MaximumMemberus-gaap:TrademarksAndTradeNamesMemberprgo:HRAPharmaMember2022-04-292022-04-290001585364prgo:HRAPharmaMemberus-gaap:DevelopedTechnologyRightsMembersrt:MinimumMember2022-04-292022-04-290001585364srt:MaximumMemberprgo:HRAPharmaMemberus-gaap:DevelopedTechnologyRightsMember2022-04-292022-04-290001585364prgo:HRAPharmaMemberprgo:DistributionNetworksMembersrt:MinimumMember2022-04-292022-04-290001585364srt:MaximumMemberprgo:HRAPharmaMemberprgo:DistributionNetworksMember2022-04-292022-04-290001585364us-gaap:DiscontinuedOperationsDisposedOfBySaleMemberprgo:AdventInternationalMember2022-03-090001585364us-gaap:DiscontinuedOperationsDisposedOfBySaleMemberprgo:AdventInternationalMember2022-03-092022-03-090001585364us-gaap:DiscontinuedOperationsDisposedOfBySaleMember2022-03-090001585364us-gaap:DiscontinuedOperationsDisposedOfBySaleMemberprgo:LatinAmericaBusinessMember2022-03-082022-03-080001585364prgo:ConsumerSelfCareInternationalMemberprgo:ScarAwayMember2022-03-242022-03-240001585364prgo:ConsumerSelfCareAmericasMember2021-12-310001585364prgo:ConsumerSelfCareAmericasMember2022-07-020001585364prgo:ConsumerSelfCareInternationalMember2021-12-310001585364prgo:ConsumerSelfCareInternationalMember2022-07-020001585364prgo:TrademarksTradeNamesandBrandsMember2022-07-020001585364prgo:TrademarksTradeNamesandBrandsMember2021-12-310001585364us-gaap:InProcessResearchAndDevelopmentMember2022-07-020001585364us-gaap:InProcessResearchAndDevelopmentMember2021-12-310001585364us-gaap:LicensingAgreementsMember2022-07-020001585364us-gaap:LicensingAgreementsMember2021-12-310001585364us-gaap:DevelopedTechnologyRightsMember2022-07-020001585364us-gaap:DevelopedTechnologyRightsMember2021-12-310001585364us-gaap:CustomerRelationshipsMember2022-07-020001585364us-gaap:CustomerRelationshipsMember2021-12-310001585364us-gaap:TrademarksAndTradeNamesMember2022-07-020001585364us-gaap:TrademarksAndTradeNamesMember2021-12-310001585364us-gaap:NoncompeteAgreementsMember2022-07-020001585364us-gaap:NoncompeteAgreementsMember2021-12-310001585364us-gaap:DevelopedTechnologyRightsMember2022-04-032022-07-020001585364us-gaap:FairValueInputsLevel1Memberus-gaap:FairValueMeasurementsRecurringMember2022-07-020001585364us-gaap:FairValueInputsLevel2Memberus-gaap:FairValueMeasurementsRecurringMember2022-07-020001585364us-gaap:FairValueMeasurementsRecurringMemberus-gaap:FairValueInputsLevel3Member2022-07-020001585364us-gaap:FairValueInputsLevel1Memberus-gaap:FairValueMeasurementsRecurringMember2021-12-310001585364us-gaap:FairValueInputsLevel2Memberus-gaap:FairValueMeasurementsRecurringMember2021-12-310001585364us-gaap:FairValueMeasurementsRecurringMemberus-gaap:FairValueInputsLevel3Member2021-12-310001585364us-gaap:FairValueInputsLevel1Memberus-gaap:FairValueMeasurementsRecurringMemberus-gaap:ForeignExchangeForwardMember2022-07-020001585364us-gaap:FairValueInputsLevel2Memberus-gaap:FairValueMeasurementsRecurringMemberus-gaap:ForeignExchangeForwardMember2022-07-020001585364us-gaap:FairValueMeasurementsRecurringMemberus-gaap:FairValueInputsLevel3Memberus-gaap:ForeignExchangeForwardMember2022-07-020001585364us-gaap:FairValueInputsLevel1Memberus-gaap:FairValueMeasurementsRecurringMemberus-gaap:ForeignExchangeForwardMember2021-12-310001585364us-gaap:FairValueInputsLevel2Memberus-gaap:FairValueMeasurementsRecurringMemberus-gaap:ForeignExchangeForwardMember2021-12-310001585364us-gaap:FairValueMeasurementsRecurringMemberus-gaap:FairValueInputsLevel3Memberus-gaap:ForeignExchangeForwardMember2021-12-310001585364us-gaap:FairValueInputsLevel1Memberus-gaap:FairValueMeasurementsRecurringMemberus-gaap:CurrencySwapMember2022-07-020001585364us-gaap:FairValueInputsLevel2Memberus-gaap:FairValueMeasurementsRecurringMemberus-gaap:CurrencySwapMember2022-07-020001585364us-gaap:FairValueMeasurementsRecurringMemberus-gaap:CurrencySwapMemberus-gaap:FairValueInputsLevel3Member2022-07-020001585364us-gaap:FairValueInputsLevel1Memberus-gaap:FairValueMeasurementsRecurringMemberus-gaap:CurrencySwapMember2021-12-310001585364us-gaap:FairValueInputsLevel2Memberus-gaap:FairValueMeasurementsRecurringMemberus-gaap:CurrencySwapMember2021-12-310001585364us-gaap:FairValueMeasurementsRecurringMemberus-gaap:CurrencySwapMemberus-gaap:FairValueInputsLevel3Member2021-12-310001585364us-gaap:FairValueInputsLevel1Memberus-gaap:FairValueMeasurementsRecurringMemberus-gaap:InterestRateSwapMember2022-07-020001585364us-gaap:FairValueInputsLevel2Memberus-gaap:FairValueMeasurementsRecurringMemberus-gaap:InterestRateSwapMember2022-07-020001585364us-gaap:FairValueMeasurementsRecurringMemberus-gaap:FairValueInputsLevel3Memberus-gaap:InterestRateSwapMember2022-07-020001585364us-gaap:FairValueInputsLevel1Memberus-gaap:FairValueMeasurementsRecurringMemberus-gaap:InterestRateSwapMember2021-12-310001585364us-gaap:FairValueInputsLevel2Memberus-gaap:FairValueMeasurementsRecurringMemberus-gaap:InterestRateSwapMember2021-12-310001585364us-gaap:FairValueMeasurementsRecurringMemberus-gaap:FairValueInputsLevel3Memberus-gaap:InterestRateSwapMember2021-12-310001585364prgo:ForeignCurrencyOptionContractMemberus-gaap:FairValueInputsLevel1Memberus-gaap:FairValueMeasurementsRecurringMember2022-07-020001585364prgo:ForeignCurrencyOptionContractMemberus-gaap:FairValueInputsLevel2Memberus-gaap:FairValueMeasurementsRecurringMember2022-07-020001585364prgo:ForeignCurrencyOptionContractMemberus-gaap:FairValueMeasurementsRecurringMemberus-gaap:FairValueInputsLevel3Member2022-07-020001585364prgo:ForeignCurrencyOptionContractMemberus-gaap:FairValueInputsLevel1Memberus-gaap:FairValueMeasurementsRecurringMember2021-12-310001585364prgo:ForeignCurrencyOptionContractMemberus-gaap:FairValueInputsLevel2Memberus-gaap:FairValueMeasurementsRecurringMember2021-12-310001585364prgo:ForeignCurrencyOptionContractMemberus-gaap:FairValueMeasurementsRecurringMemberus-gaap:FairValueInputsLevel3Member2021-12-310001585364us-gaap:FairValueMeasurementsNonrecurringMemberus-gaap:FairValueInputsLevel1Member2022-07-020001585364us-gaap:FairValueInputsLevel2Memberus-gaap:FairValueMeasurementsNonrecurringMember2022-07-020001585364us-gaap:FairValueMeasurementsNonrecurringMemberus-gaap:FairValueInputsLevel3Member2022-07-020001585364us-gaap:FairValueMeasurementsNonrecurringMemberus-gaap:FairValueInputsLevel1Member2021-12-310001585364us-gaap:FairValueInputsLevel2Memberus-gaap:FairValueMeasurementsNonrecurringMember2021-12-310001585364us-gaap:FairValueMeasurementsNonrecurringMemberus-gaap:FairValueInputsLevel3Member2021-12-310001585364us-gaap:FairValueMeasurementsNonrecurringMemberprgo:ConsumerSelfCareAmericasMember2021-12-310001585364prgo:MexicoAndBrazilBasedOverTheCounterBusinessesMemberus-gaap:DisposalGroupHeldforsaleNotDiscontinuedOperationsMember2021-01-012021-12-310001585364prgo:PublicBondsandPrivatePlacementMemberus-gaap:FairValueInputsLevel1Memberus-gaap:CarryingReportedAmountFairValueDisclosureMember2022-07-020001585364prgo:PublicBondsandPrivatePlacementMemberus-gaap:FairValueInputsLevel2Memberus-gaap:CarryingReportedAmountFairValueDisclosureMember2022-07-020001585364prgo:PublicBondsandPrivatePlacementMemberus-gaap:FairValueInputsLevel1Memberus-gaap:CarryingReportedAmountFairValueDisclosureMember2021-12-310001585364prgo:PublicBondsandPrivatePlacementMemberus-gaap:FairValueInputsLevel2Memberus-gaap:CarryingReportedAmountFairValueDisclosureMember2021-12-310001585364prgo:PublicBondsandPrivatePlacementMemberus-gaap:FairValueInputsLevel1Member2022-07-020001585364prgo:PublicBondsandPrivatePlacementMemberus-gaap:FairValueInputsLevel2Member2022-07-020001585364prgo:PublicBondsandPrivatePlacementMemberus-gaap:FairValueInputsLevel1Member2021-12-310001585364prgo:PublicBondsandPrivatePlacementMemberus-gaap:FairValueInputsLevel2Member2021-12-310001585364prgo:PrivatePlacementNoteMemberus-gaap:FairValueInputsLevel1Memberus-gaap:CarryingReportedAmountFairValueDisclosureMember2022-07-020001585364us-gaap:FairValueInputsLevel2Memberprgo:PrivatePlacementNoteMemberus-gaap:CarryingReportedAmountFairValueDisclosureMember2022-07-020001585364prgo:PrivatePlacementNoteMemberus-gaap:FairValueInputsLevel1Memberus-gaap:CarryingReportedAmountFairValueDisclosureMember2021-12-310001585364us-gaap:FairValueInputsLevel2Memberprgo:PrivatePlacementNoteMemberus-gaap:CarryingReportedAmountFairValueDisclosureMember2021-12-310001585364prgo:PrivatePlacementNoteMemberus-gaap:FairValueInputsLevel1Member2022-07-020001585364prgo:PrivatePlacementNoteMemberus-gaap:FairValueInputsLevel2Member2022-07-020001585364prgo:PrivatePlacementNoteMemberus-gaap:FairValueInputsLevel1Member2021-12-310001585364prgo:PrivatePlacementNoteMemberus-gaap:FairValueInputsLevel2Member2021-12-310001585364us-gaap:PrepaidExpensesAndOtherCurrentAssetsMember2022-07-020001585364us-gaap:PrepaidExpensesAndOtherCurrentAssetsMember2021-12-310001585364us-gaap:OtherNoncurrentAssetsMember2022-07-020001585364us-gaap:OtherNoncurrentAssetsMember2021-12-310001585364prgo:OtherExpenseIncomeNetMember2022-04-032022-07-020001585364prgo:OtherExpenseIncomeNetMember2021-04-042021-07-030001585364prgo:OtherExpenseIncomeNetMember2022-01-012022-07-020001585364prgo:OtherExpenseIncomeNetMember2021-01-012021-07-030001585364prgo:RXPharmaceuticalsMemberus-gaap:DiscontinuedOperationsDisposedOfBySaleMember2021-07-060001585364prgo:RXPharmaceuticalsMemberus-gaap:DiscontinuedOperationsDisposedOfBySaleMember2021-07-062021-07-0600015853642021-07-062021-07-060001585364prgo:RXPharmaceuticalsMemberus-gaap:DiscontinuedOperationsDisposedOfBySaleMember2022-04-032022-07-020001585364prgo:RXPharmaceuticalsMemberus-gaap:DiscontinuedOperationsDisposedOfBySaleMember2022-01-012022-07-020001585364prgo:RXPharmaceuticalsMemberus-gaap:DiscontinuedOperationsDisposedOfBySaleMember2021-04-042021-07-030001585364prgo:RXPharmaceuticalsMemberus-gaap:DiscontinuedOperationsDisposedOfBySaleMember2021-01-012021-07-0300015853642015-05-152015-05-15prgo:brand0001585364prgo:RXPharmaceuticalsMemberus-gaap:DiscontinuedOperationsDisposedOfBySaleMember2020-12-312020-12-310001585364prgo:RXPharmaceuticalsMemberus-gaap:DiscontinuedOperationsDisposedOfBySaleMember2021-03-082021-03-080001585364us-gaap:ForeignExchangeOptionMember2022-04-30prgo:derivative0001585364us-gaap:ForeignExchangeOptionMemberus-gaap:NondesignatedMember2021-09-300001585364us-gaap:ForeignExchangeOptionMember2022-04-030001585364us-gaap:ForeignExchangeOptionMember2022-04-012022-04-300001585364us-gaap:OtherNonoperatingIncomeExpenseMemberus-gaap:ForeignExchangeOptionMemberus-gaap:NondesignatedMember2022-04-032022-07-020001585364us-gaap:OtherNonoperatingIncomeExpenseMemberus-gaap:ForeignExchangeOptionMemberus-gaap:NondesignatedMember2022-01-012022-07-020001585364us-gaap:InterestRateSwapMember2022-04-020001585364us-gaap:CashFlowHedgingMemberprgo:NewTermLoanBFacilityMemberus-gaap:InterestRateSwapMember2022-04-020001585364srt:MaximumMemberprgo:June12022ThroughApril12029Memberus-gaap:CashFlowHedgingMemberus-gaap:InterestRateSwapMember2022-04-290001585364prgo:June12022ThroughApril12029Memberus-gaap:CashFlowHedgingMemberus-gaap:InterestRateSwapMembersrt:MinimumMember2022-04-290001585364us-gaap:CashFlowHedgingMemberus-gaap:InterestRateSwapMemberprgo:NewTermLoanAFacilityMember2022-04-020001585364srt:MaximumMemberus-gaap:CashFlowHedgingMemberus-gaap:InterestRateSwapMemberprgo:June12022ThroughApril12027Member2022-06-010001585364us-gaap:CashFlowHedgingMemberus-gaap:InterestRateSwapMembersrt:MinimumMemberprgo:June12022ThroughApril12027Member2022-06-010001585364us-gaap:InterestRateSwapMemberus-gaap:NetInvestmentHedgingMember2022-04-020001585364prgo:April202022ThroughDecember152024Memberus-gaap:InterestRateSwapMemberus-gaap:NetInvestmentHedgingMember2022-04-290001585364us-gaap:InterestRateSwapMemberus-gaap:NetInvestmentHedgingMemberprgo:April292022ThroughMarch252026Member2022-04-290001585364prgo:April222022ThroughJune152030Memberus-gaap:InterestRateSwapMemberus-gaap:NetInvestmentHedgingMember2022-04-290001585364currency:GBPus-gaap:ForeignExchangeForwardMember2022-07-020001585364currency:GBPus-gaap:ForeignExchangeForwardMember2021-12-310001585364currency:SEKus-gaap:ForeignExchangeForwardMember2022-07-020001585364currency:SEKus-gaap:ForeignExchangeForwardMember2021-12-310001585364us-gaap:ForeignExchangeForwardMembercurrency:DKK2022-07-020001585364us-gaap:ForeignExchangeForwardMembercurrency:DKK2021-12-310001585364currency:EURus-gaap:ForeignExchangeForwardMember2022-07-020001585364currency:EURus-gaap:ForeignExchangeForwardMember2021-12-310001585364currency:CNYus-gaap:ForeignExchangeForwardMember2022-07-020001585364currency:CNYus-gaap:ForeignExchangeForwardMember2021-12-310001585364currency:CADus-gaap:ForeignExchangeForwardMember2022-07-020001585364currency:CADus-gaap:ForeignExchangeForwardMember2021-12-310001585364currency:PLNus-gaap:ForeignExchangeForwardMember2022-07-020001585364currency:PLNus-gaap:ForeignExchangeForwardMember2021-12-310001585364currency:MXNus-gaap:ForeignExchangeForwardMember2022-07-020001585364currency:MXNus-gaap:ForeignExchangeForwardMember2021-12-310001585364currency:USDus-gaap:ForeignExchangeForwardMember2022-07-020001585364currency:USDus-gaap:ForeignExchangeForwardMember2021-12-310001585364currency:NOKus-gaap:ForeignExchangeForwardMember2022-07-020001585364currency:NOKus-gaap:ForeignExchangeForwardMember2021-12-310001585364currency:ILSus-gaap:ForeignExchangeForwardMember2022-07-020001585364currency:ILSus-gaap:ForeignExchangeForwardMember2021-12-310001585364currency:AUDus-gaap:ForeignExchangeForwardMember2022-07-020001585364currency:AUDus-gaap:ForeignExchangeForwardMember2021-12-310001585364currency:TRYus-gaap:ForeignExchangeForwardMember2022-07-020001585364currency:TRYus-gaap:ForeignExchangeForwardMember2021-12-310001585364currency:RONus-gaap:ForeignExchangeForwardMember2022-07-020001585364currency:RONus-gaap:ForeignExchangeForwardMember2021-12-310001585364currency:CHFus-gaap:ForeignExchangeForwardMember2022-07-020001585364currency:CHFus-gaap:ForeignExchangeForwardMember2021-12-310001585364currency:XXXus-gaap:ForeignExchangeForwardMember2022-07-020001585364currency:XXXus-gaap:ForeignExchangeForwardMember2021-12-310001585364us-gaap:ForeignExchangeForwardMember2022-07-020001585364us-gaap:ForeignExchangeForwardMember2021-12-310001585364us-gaap:ForeignExchangeForwardMember2022-01-012022-07-020001585364us-gaap:PrepaidExpensesAndOtherCurrentAssetsMemberus-gaap:ForeignExchangeForwardMemberus-gaap:DesignatedAsHedgingInstrumentMember2022-07-020001585364us-gaap:PrepaidExpensesAndOtherCurrentAssetsMemberus-gaap:ForeignExchangeForwardMemberus-gaap:DesignatedAsHedgingInstrumentMember2021-12-310001585364us-gaap:PrepaidExpensesAndOtherCurrentAssetsMemberus-gaap:InterestRateSwapMemberus-gaap:DesignatedAsHedgingInstrumentMember2021-12-310001585364us-gaap:OtherNoncurrentAssetsMemberus-gaap:ForeignExchangeForwardMemberus-gaap:DesignatedAsHedgingInstrumentMember2022-07-020001585364us-gaap:OtherNoncurrentAssetsMemberus-gaap:ForeignExchangeForwardMemberus-gaap:DesignatedAsHedgingInstrumentMember2021-12-310001585364us-gaap:PrepaidExpensesAndOtherCurrentAssetsMemberus-gaap:CurrencySwapMemberus-gaap:DesignatedAsHedgingInstrumentMember2021-12-310001585364us-gaap:DesignatedAsHedgingInstrumentMember2022-07-020001585364us-gaap:DesignatedAsHedgingInstrumentMember2021-12-310001585364us-gaap:PrepaidExpensesAndOtherCurrentAssetsMemberus-gaap:NondesignatedMemberus-gaap:ForeignExchangeForwardMember2022-07-020001585364us-gaap:PrepaidExpensesAndOtherCurrentAssetsMemberus-gaap:NondesignatedMemberus-gaap:ForeignExchangeForwardMember2021-12-310001585364us-gaap:PrepaidExpensesAndOtherCurrentAssetsMemberus-gaap:ForeignExchangeOptionMemberus-gaap:NondesignatedMember2022-07-020001585364us-gaap:PrepaidExpensesAndOtherCurrentAssetsMemberus-gaap:ForeignExchangeOptionMemberus-gaap:NondesignatedMember2021-12-310001585364us-gaap:NondesignatedMember2022-07-020001585364us-gaap:NondesignatedMember2021-12-310001585364us-gaap:OtherLiabilitiesMemberus-gaap:ForeignExchangeForwardMemberus-gaap:DesignatedAsHedgingInstrumentMember2022-07-020001585364us-gaap:OtherLiabilitiesMemberus-gaap:ForeignExchangeForwardMemberus-gaap:DesignatedAsHedgingInstrumentMember2021-12-310001585364us-gaap:OtherLiabilitiesMemberus-gaap:CurrencySwapMemberus-gaap:DesignatedAsHedgingInstrumentMember2022-07-020001585364us-gaap:OtherLiabilitiesMemberus-gaap:CurrencySwapMemberus-gaap:DesignatedAsHedgingInstrumentMember2021-12-310001585364us-gaap:OtherLiabilitiesMemberus-gaap:InterestRateSwapMemberus-gaap:DesignatedAsHedgingInstrumentMember2021-12-310001585364us-gaap:OtherLiabilitiesMemberus-gaap:NondesignatedMemberus-gaap:ForeignExchangeForwardMember2022-07-020001585364us-gaap:OtherLiabilitiesMemberus-gaap:NondesignatedMemberus-gaap:ForeignExchangeForwardMember2021-12-310001585364us-gaap:InterestExpenseMemberus-gaap:InterestRateSwapMember2022-04-032022-07-020001585364us-gaap:InterestExpenseMember2022-04-032022-07-020001585364us-gaap:ForeignExchangeForwardMember2022-04-032022-07-020001585364us-gaap:SalesRevenueNetMember2022-04-032022-07-020001585364us-gaap:CostOfSalesMember2022-04-032022-07-020001585364us-gaap:CurrencySwapMember2022-04-032022-07-020001585364us-gaap:InterestExpenseMemberus-gaap:CurrencySwapMember2022-04-032022-07-020001585364us-gaap:InterestExpenseMemberus-gaap:InterestRateSwapMember2022-01-012022-07-020001585364us-gaap:InterestExpenseMember2022-01-012022-07-020001585364us-gaap:SalesRevenueNetMember2022-01-012022-07-020001585364us-gaap:CostOfSalesMember2022-01-012022-07-020001585364us-gaap:CurrencySwapMember2022-01-012022-07-020001585364us-gaap:InterestExpenseMemberus-gaap:CurrencySwapMember2022-01-012022-07-020001585364us-gaap:InterestExpenseMemberus-gaap:InterestRateSwapMember2021-04-042021-07-030001585364us-gaap:InterestExpenseMember2021-04-042021-07-030001585364us-gaap:ForeignExchangeForwardMember2021-04-042021-07-030001585364us-gaap:SalesRevenueNetMember2021-04-042021-07-030001585364us-gaap:CostOfSalesMember2021-04-042021-07-030001585364us-gaap:CurrencySwapMember2021-04-042021-07-030001585364us-gaap:InterestExpenseMemberus-gaap:CurrencySwapMember2021-04-042021-07-030001585364us-gaap:InterestExpenseMemberus-gaap:InterestRateSwapMember2021-01-012021-07-030001585364us-gaap:InterestExpenseMember2021-01-012021-07-030001585364us-gaap:ForeignExchangeForwardMember2021-01-012021-07-030001585364us-gaap:SalesRevenueNetMember2021-01-012021-07-030001585364us-gaap:CostOfSalesMember2021-01-012021-07-030001585364us-gaap:CurrencySwapMember2021-01-012021-07-030001585364us-gaap:InterestExpenseMemberus-gaap:CurrencySwapMember2021-01-012021-07-030001585364us-gaap:OtherNonoperatingIncomeExpenseMemberus-gaap:NondesignatedMemberus-gaap:ForeignExchangeForwardMember2022-04-032022-07-020001585364us-gaap:OtherNonoperatingIncomeExpenseMemberus-gaap:NondesignatedMemberus-gaap:ForeignExchangeForwardMember2021-04-042021-07-030001585364us-gaap:OtherNonoperatingIncomeExpenseMemberus-gaap:NondesignatedMemberus-gaap:ForeignExchangeForwardMember2022-01-012022-07-020001585364us-gaap:OtherNonoperatingIncomeExpenseMemberus-gaap:NondesignatedMemberus-gaap:ForeignExchangeForwardMember2021-01-012021-07-030001585364us-gaap:InterestExpenseMemberus-gaap:NondesignatedMemberus-gaap:ForeignExchangeForwardMember2022-04-032022-07-020001585364us-gaap:InterestExpenseMemberus-gaap:NondesignatedMemberus-gaap:ForeignExchangeForwardMember2021-04-042021-07-030001585364us-gaap:InterestExpenseMemberus-gaap:NondesignatedMemberus-gaap:ForeignExchangeForwardMember2022-01-012022-07-020001585364us-gaap:InterestExpenseMemberus-gaap:NondesignatedMemberus-gaap:ForeignExchangeForwardMember2021-01-012021-07-030001585364us-gaap:NondesignatedMemberus-gaap:ForeignExchangeForwardMember2022-04-032022-07-020001585364us-gaap:NondesignatedMemberus-gaap:ForeignExchangeForwardMember2021-04-042021-07-030001585364us-gaap:NondesignatedMemberus-gaap:ForeignExchangeForwardMember2022-01-012022-07-020001585364us-gaap:NondesignatedMemberus-gaap:ForeignExchangeForwardMember2021-01-012021-07-030001585364us-gaap:OtherNonoperatingIncomeExpenseMemberus-gaap:ForeignExchangeOptionMemberus-gaap:NondesignatedMember2021-04-042021-07-030001585364us-gaap:OtherNonoperatingIncomeExpenseMemberus-gaap:ForeignExchangeOptionMemberus-gaap:NondesignatedMember2021-01-012021-07-030001585364us-gaap:SalesRevenueNetMemberus-gaap:InterestRateSwapMember2022-04-032022-07-020001585364us-gaap:CostOfSalesMemberus-gaap:InterestRateSwapMember2022-04-032022-07-020001585364us-gaap:InterestRateSwapMemberprgo:OtherExpenseIncomeNetMember2022-04-032022-07-020001585364us-gaap:SalesRevenueNetMemberus-gaap:TreasuryLockMember2022-01-012022-07-020001585364us-gaap:CostOfSalesMemberus-gaap:TreasuryLockMember2022-01-012022-07-020001585364us-gaap:InterestExpenseMemberus-gaap:TreasuryLockMember2022-01-012022-07-020001585364us-gaap:TreasuryLockMemberprgo:OtherExpenseIncomeNetMember2022-01-012022-07-020001585364us-gaap:SalesRevenueNetMemberus-gaap:InterestRateSwapMember2022-01-012022-07-020001585364us-gaap:CostOfSalesMemberus-gaap:InterestRateSwapMember2022-01-012022-07-020001585364us-gaap:InterestRateSwapMemberprgo:OtherExpenseIncomeNetMember2022-01-012022-07-020001585364us-gaap:SalesRevenueNetMemberus-gaap:InterestRateSwapMember2021-04-042021-07-030001585364us-gaap:CostOfSalesMemberus-gaap:InterestRateSwapMember2021-04-042021-07-030001585364us-gaap:InterestRateSwapMemberprgo:OtherExpenseIncomeNetMember2021-04-042021-07-030001585364us-gaap:SalesRevenueNetMemberus-gaap:InterestRateSwapMember2021-01-012021-07-030001585364us-gaap:CostOfSalesMemberus-gaap:InterestRateSwapMember2021-01-012021-07-030001585364us-gaap:InterestRateSwapMemberprgo:OtherExpenseIncomeNetMember2021-01-012021-07-030001585364us-gaap:OperatingSegmentsMemberprgo:ConsumerSelfCareAmericasMember2022-07-020001585364us-gaap:OperatingSegmentsMemberprgo:ConsumerSelfCareAmericasMember2021-12-310001585364prgo:ConsumerSelfCareInternationalMemberus-gaap:OperatingSegmentsMember2022-07-020001585364prgo:ConsumerSelfCareInternationalMemberus-gaap:OperatingSegmentsMember2021-12-310001585364us-gaap:MaterialReconcilingItemsMember2022-07-020001585364us-gaap:MaterialReconcilingItemsMember2021-12-310001585364us-gaap:LineOfCreditMemberus-gaap:RevolvingCreditFacilityMember2022-04-200001585364us-gaap:LineOfCreditMemberus-gaap:RevolvingCreditFacilityMember2022-04-202022-04-200001585364us-gaap:LineOfCreditMemberus-gaap:SecuredDebtMemberprgo:NewTermLoanAFacilityMember2022-04-200001585364us-gaap:LineOfCreditMemberus-gaap:SecuredDebtMemberprgo:NewTermLoanAFacilityMember2022-04-202022-04-200001585364us-gaap:LineOfCreditMemberus-gaap:SecuredDebtMemberprgo:NewTermLoanBFacilityMember2022-04-200001585364us-gaap:LineOfCreditMemberus-gaap:SecuredDebtMemberprgo:NewTermLoanBFacilityMember2022-04-202022-04-200001585364prgo:A5.30UnsecuredSeniorNotesdueNovember152043Member2022-07-020001585364prgo:A3.9seniornotedue2024Member2022-07-020001585364prgo:A4.375seniornotedueMarch152026Member2022-07-020001585364prgo:A44SeniorNotesDueJune152030Member2022-07-020001585364prgo:A4.9SeniorLoandue2044Member2022-07-020001585364prgo:A2019EuroDenominatedTermLoandueAugust152022Member2022-07-020001585364prgo:A2019EuroDenominatedTermLoandueAugust152022Member2021-12-310001585364prgo:June12022ThroughApril12027Member2022-07-020001585364prgo:June12022ThroughApril12027Member2021-12-310001585364prgo:June12022ThroughApril12029Member2022-07-020001585364prgo:June12022ThroughApril12029Member2021-12-310001585364prgo:A5.105SeniornotedueJuly282023Member2022-07-020001585364prgo:A5.105SeniornotedueJuly282023Member2021-12-310001585364prgo:A4.00UnsecuredSeniorNotesdueNovember152023Member2022-07-020001585364prgo:A4.00UnsecuredSeniorNotesdueNovember152023Member2021-12-310001585364prgo:A3.9seniornotedue2024Member2021-12-310001585364prgo:A4.375seniornotedueMarch152026Member2021-12-310001585364prgo:A44SeniorNotesDueJune152030Member2021-12-310001585364prgo:A5.30UnsecuredSeniorNotesdueNovember152043Member2021-12-310001585364prgo:A4.9SeniorLoandue2044Member2021-12-310001585364prgo:A44SeniorNotesDueJune152030Member2021-12-150001585364prgo:A44SeniorNotesDueJune152030Member2021-12-160001585364prgo:A44SeniorNotesDueJune152030Member2022-06-150001585364prgo:A2018RevolverMember2022-07-020001585364prgo:A2018RevolverMember2021-12-310001585364prgo:A2019EuroDenominatedTermLoandueAugust152022Member2019-08-150001585364prgo:A2019EuroDenominatedTermLoandueAugust152022Member2022-04-300001585364prgo:A2019EuroDenominatedTermLoandueAugust152022Member2022-04-302022-04-300001585364prgo:KazmiraLLCMember2020-06-17prgo:promissoryNote0001585364prgo:KazmiraLLCMemberprgo:NotedueNovember2020Member2020-12-082020-12-080001585364prgo:KazmiraLLCMemberprgo:NotedueNovember2020Member2021-06-072021-06-070001585364prgo:KazmiraLLCMemberprgo:NotedueNovember2021Member2021-12-012021-12-3100015853642018-10-310001585364us-gaap:AccumulatedGainLossNetCashFlowHedgeParentMember2021-12-310001585364us-gaap:AccumulatedTranslationAdjustmentMember2021-12-310001585364us-gaap:AccumulatedDefinedBenefitPlansAdjustmentMember2021-12-310001585364us-gaap:AccumulatedGainLossNetCashFlowHedgeParentMember2022-01-012022-07-020001585364us-gaap:AccumulatedTranslationAdjustmentMember2022-01-012022-07-020001585364us-gaap:AccumulatedDefinedBenefitPlansAdjustmentMember2022-01-012022-07-020001585364us-gaap:AccumulatedGainLossNetCashFlowHedgeParentMember2022-07-020001585364us-gaap:AccumulatedTranslationAdjustmentMember2022-07-020001585364us-gaap:AccumulatedDefinedBenefitPlansAdjustmentMember2022-07-020001585364us-gaap:InternalRevenueServiceIRSMember2022-01-012022-07-02prgo:year00015853642009-01-012009-12-3100015853642010-01-012010-12-3100015853642011-01-012011-12-3100015853642012-01-012012-12-3100015853642017-08-152017-08-1500015853642021-01-132021-01-130001585364srt:MinimumMember2021-01-132021-01-130001585364srt:MaximumMember2021-01-132021-01-1300015853642021-01-1300015853642020-05-072020-05-0700015853642022-01-202022-01-2000015853642020-12-192020-12-1900015853642019-04-260001585364us-gaap:RevenueCommissionersIrelandMember2021-09-292021-09-290001585364us-gaap:RevenueCommissionersIrelandMember2021-10-052021-10-050001585364us-gaap:IsraelTaxAuthorityMember2022-01-012022-07-020001585364us-gaap:IsraelTaxAuthorityMember2017-01-012017-12-310001585364us-gaap:IsraelTaxAuthorityMember2022-07-020001585364prgo:StatesMay2019CaseAllegingConspiracywhichdoesnotNamePerrigoaDefendantMember2020-07-14prgo:manufacturerprgo:classprgo:complaint0001585364prgo:OverarchingConspiracyClassActionsMember2019-04-30prgo:genericPrescriptionPharmaceuticalprgo:pharmaceuticalProduct0001585364prgo:OverarchingConspiracyClassActionsMember2020-07-14prgo:case0001585364prgo:PriceFixingLawsuitSupermarketChainsMember2018-01-22prgo:supermarket0001585364prgo:PriceFixingLawsuitSupermarketChainsAmendedComplaintMember2018-12-210001585364prgo:PricefixingLawsuitManagedCareOrganizationMember2018-08-030001585364prgo:PricefixingLawsuitHealthInsuranceCarrierMember2019-01-160001585364prgo:PricefixingLawsuitHealthInsuranceCarrierMember2019-01-162019-01-16prgo:defendant0001585364prgo:PricefixingLawsuitHealthPlansMember2019-07-18prgo:healthPlanprgo:individual0001585364prgo:PricefixingLawsuitHealthcareServiceCompanyMember2019-12-110001585364prgo:PricefixingLawsuitMedicareAdvantageClaimsRecoveryCompanyMember2019-12-160001585364prgo:PricefixingLawsuitSeveralCountiesinNewYorkMember2019-12-230001585364prgo:PricefixingLawsuitHealthcareManagementOrganizationMember2019-12-270001585364prgo:PricefixingLawsuitHarrisCountyofTexasMember2020-03-010001585364prgo:PricefixingLawsuitHealthPlansMember2020-05-310001585364prgo:PricefixingLawsuitHealthInsuranceCarrierMember2020-06-090001585364prgo:PriceFixingLawsuitDrugstoreChainMember2020-07-09prgo:pharmaceuticalCompany0001585364prgo:PriceFixingLawsuitSuffolkCountyofNewYorkMember2020-08-270001585364prgo:PriceFixingLawsuitDrugWholesalerandDistributorMember2020-09-040001585364prgo:PriceFixingLawsuitDrugstoreChainMember2020-12-110001585364prgo:PriceFixingLawsuitSupermarketChainsMember2020-12-140001585364prgo:PriceFixingLawsuitDrugstoreChainMember2020-12-150001585364prgo:PricefixingLawsuitSeveralCountiesinNewYorkMember2020-12-150001585364prgo:PriceFixingLawsuitWestchesterCountyNYMember2021-08-300001585364prgo:PriceFixingLawsuitPennsylvaniaStateCourtMember2021-10-080001585364prgo:StateAttorneyGeneralComplaintMember2020-06-10prgo:plaintiffGroupprgo:retailer0001585364prgo:CanadianClassActionComplaintMember2021-10-0200015853642017-06-2100015853642019-11-140001585364prgo:HighfieldsCapitalILPetal.v.PerrigoCompanyplcetal.Member2022-07-02prgo:lawsuit0001585364prgo:CarmignacFirstManhattanandSimilarCasesMember2022-07-020001585364prgo:FirstManhattanandSimilarCasesMember2022-07-020001585364prgo:MasonCapitalPentwaterandSimilarCasesMember2022-07-020001585364prgo:HarelInsuranceandTIAACREFFCasesMember2022-07-020001585364prgo:HarelInsuranceandTIAACREFFCasesMember2022-01-012022-07-020001585364prgo:HarelInsuranceandTIAACREFFCasesMember2018-07-310001585364prgo:OtherCasesRelatedtoEventsin20152017Member2017-06-300001585364prgo:BlackrockGlobalComplaintMember2022-07-020001585364prgo:InIsraelCasesRelatedToEventsIn20152017Member2018-12-310001585364prgo:InIsraelCasesRelatedToEventsIn20152017Member2017-01-012017-12-310001585364prgo:InIsraelCasesRelatedToEventsIn20152017Member2018-01-012018-12-310001585364prgo:IsraelElec.Corp.EmployeesEduc.Fundv.PerrigoCompanyplcetal.Member2017-06-280001585364prgo:IsraelElec.Corp.EmployeesEduc.Fundv.PerrigoCompanyplcetal.Member2017-06-282017-06-28iso4217:ILSiso4217:USDiso4217:ILS0001585364prgo:InIsraelCasesRelatedtoIrishTaxEventsMember2019-01-012019-12-310001585364prgo:TalcumPowderLitigationMember2022-07-020001585364prgo:TalcumPowderLitigationMember2022-01-012022-07-02prgo:tender0001585364prgo:RanitidineLitigationMember2021-09-302021-09-30prgo:claim0001585364prgo:RanitidineLitigationMember2022-01-012022-07-0200015853642021-05-31prgo:policyPeriod0001585364us-gaap:DiscontinuedOperationsHeldforsaleMember2022-07-020001585364us-gaap:DiscontinuedOperationsHeldforsaleMember2021-12-310001585364us-gaap:OperatingSegmentsMemberprgo:ConsumerSelfCareAmericasMember2022-04-032022-07-020001585364us-gaap:OperatingSegmentsMemberprgo:ConsumerSelfCareAmericasMember2021-04-042021-07-030001585364prgo:ConsumerSelfCareInternationalMemberus-gaap:OperatingSegmentsMember2022-04-032022-07-020001585364prgo:ConsumerSelfCareInternationalMemberus-gaap:OperatingSegmentsMember2021-04-042021-07-030001585364us-gaap:MaterialReconcilingItemsMember2022-04-032022-07-020001585364us-gaap:MaterialReconcilingItemsMember2021-04-042021-07-030001585364us-gaap:OperatingSegmentsMemberprgo:ConsumerSelfCareAmericasMember2022-01-012022-07-020001585364us-gaap:OperatingSegmentsMemberprgo:ConsumerSelfCareAmericasMember2021-01-012021-07-030001585364prgo:ConsumerSelfCareInternationalMemberus-gaap:OperatingSegmentsMember2022-01-012022-07-020001585364prgo:ConsumerSelfCareInternationalMemberus-gaap:OperatingSegmentsMember2021-01-012021-07-030001585364us-gaap:MaterialReconcilingItemsMember2022-01-012022-07-020001585364us-gaap:MaterialReconcilingItemsMember2021-01-012021-07-03

UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
_______________________________________________
 FORM 10-Q
_______________________________________________
QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
For the quarterly period ended: July 2, 2022

OR
TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
For the transition period from              to             
Commission file number 001-36353
_______________________________________________
Perrigo Company plc
(Exact name of registrant as specified in its charter)
_______________________________________________
Ireland   Not Applicable
(State or other jurisdiction of
incorporation or organization)
  (I.R.S. Employer
Identification No.)

The Sharp Building, Hogan Place, Dublin 2, Ireland D02 TY74
+353 1 7094000
(Address, including zip code, and telephone number, including
area code, of registrant’s principal executive offices)

Not Applicable
(Former name, former address and former fiscal year, if changed since last report)
Securities registered pursuant to Section 12(b) of the Act:
Title of each class Trading Symbol(s) Name of each exchange on which registered
Ordinary shares, €0.001 par value PRGO New York Stock Exchange
3.900% Notes due 2024 PRGO24 New York Stock Exchange
4.375% Notes due 2026 PRGO26 New York Stock Exchange
4.400% Notes due 2030
PRGO30 New York Stock Exchange
5.300% Notes due 2043 PRGO43 New York Stock Exchange
4.900% Notes due 2044 PRGO44 New York Stock Exchange
Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.    Yes      No 
Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files).    Yes     No 
Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See definitions of “large accelerated filer”, “accelerated filer”, “smaller reporting company”, and "emerging growth company" in Rule 12b-2 of the Exchange Act.
Large accelerated filer Accelerated filer Non-accelerated filer Smaller reporting company
Emerging growth company
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act.
Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).
   Yes   No
As of August 5, 2022, there were 134,618,001 ordinary shares outstanding.



PERRIGO COMPANY PLC
FORM 10-Q
INDEX
PAGE
NUMBER
1
PART I. FINANCIAL INFORMATION
2
3
4
5
6
1
7
2
8
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
PART II. OTHER INFORMATION



CAUTIONARY NOTE REGARDING FORWARD-LOOKING STATEMENTS

Certain statements in this report are “forward-looking statements” within the meaning of Section 21E of the Securities Exchange Act of 1934, as amended, and are subject to the safe harbor created thereby. These statements relate to future events or our future financial performance and involve known and unknown risks, uncertainties and other factors that may cause our, or our industry’s actual results, levels of activity, performance or achievements to be materially different from those expressed or implied by any forward-looking statements. In particular, statements about our expectations, beliefs, plans, objectives, assumptions, future events or future performance contained in this report, including certain statements contained in “Management’s Discussion and Analysis of Financial Condition and Results of Operations” are forward-looking statements. In some cases, forward-looking statements can be identified by terminology such as “may,” “will,” “could,” “would,” “should,” “expect,” “plan,” “anticipate,” “intend,” “believe,” “estimate,” "forecast," “predict,” “potential” or the negative of those terms or other comparable terminology.

The Company has based these forward-looking statements on its current expectations, assumptions, estimates and projections. While the Company believes these expectations, assumptions, estimates and projections are reasonable, such forward-looking statements are only predictions and involve known and unknown risks and uncertainties, many of which are beyond the Company’s control, including: the effect of the coronavirus (COVID-19) pandemic and its variants and associated supply chain impacts on the Company’s business; general economic, credit, and market conditions; the impact of the war in Ukraine and any escalation thereof, including the effects of economic and political sanctions imposed by the United States, United Kingdom, European Union, and other countries related thereto; the outbreak or escalation of conflict in other regions where we do business; future impairment charges; customer acceptance of new products; competition from other industry participants, some of whom have greater marketing resources or larger market shares in certain product categories than the Company does; pricing pressures from customers and consumers; resolution of uncertain tax positions, including the Company’s appeal of the draft and final Notices of Proposed Assessment (“NOPAs”) issued by the U.S. Internal Revenue Service and the impact that an adverse result in any such proceedings would have on operating results, cash flows, and liquidity; pending and potential third-party claims and litigation, including litigation relating to the Company’s restatement of previously-filed financial information and litigation relating to uncertain tax positions, including the NOPAs; potential impacts of ongoing or future government investigations and regulatory initiatives; uncertainty regarding the timing of, and the Company’s ability to obtain and maintain, certain regulatory approvals, including the sale of daily over-the-counter oral contraceptives; potential costs and reputational impact of product recalls or sales halts; the impact of tax reform legislation and/or changes in healthcare policy; the timing, amount and cost of any share repurchases; fluctuations in currency exchange rates and interest rates; the Company’s ability to achieve the benefits expected from the sale of its RX business and the risk that potential costs or liabilities incurred or retained in connection with that transaction may exceed the Company’s estimates or adversely affect the Company’s business or operations; the Company’s ability to achieve the benefits expected from the acquisition of Héra SAS ("HRA Pharma") and the risks that the Company’s synergy estimates are inaccurate or that the Company faces higher than anticipated integration or other costs in connection with the acquisition; risks associated with the integration of HRA Pharma, including the risk that growth rates are adversely affected by any delay in the integration of sales and distribution networks; the consummation and success of other announced and unannounced acquisitions or dispositions, and the Company’s ability to realize the desired benefits thereof; and the Company’s ability to execute and achieve the desired benefits of announced cost-reduction efforts and strategic and other initiatives, including the Company’s ability to achieve the expected benefits from its supply chain reinvention program. An adverse result with respect to the Company’s appeal of any material outstanding tax assessments or pending litigation, including securities or drug pricing matters, could ultimately require the use of corporate assets to pay such assessments, damages from third-party claims, and related interest and/or penalties, and any such use of corporate assets would limit the assets available for other corporate purposes. There can be no assurance that the FDA will approve the sale of daily oral contraceptives without a prescription in the United States. These and other important factors, including those discussed in our Form 10-K for the year ended December 31, 2021, this report under “Risk Factors” and in any subsequent filings with the United States Securities and Exchange Commission, may cause actual results, performance or achievements to differ materially from those expressed or implied by these forward-looking statements. The forward-looking statements in this report are made only as of the date hereof, and unless otherwise required by applicable securities laws, we disclaim any intention or obligation to update or revise any forward-looking statements, whether as a result of new information, future events, or otherwise.

TRADEMARKS, TRADE NAMES AND SERVICE MARKS

This report contains trademarks, trade names and service marks that are the property of Perrigo Company plc, as well as, for informational purposes, trademarks, trade names, and service marks that are the property of other organizations. Solely for convenience, certain trademarks, trade names, and service marks referred to in this report appear without the ®, ™ and SM symbols, but those references are not intended to indicate that we or the applicable owner, as the case may be, will not assert, to the fullest extent under applicable law, our or their rights to such trademarks, trade names, and service marks.
1

Perrigo Company plc - Item 1
PART I.     FINANCIAL INFORMATION

ITEM 1.        FINANCIAL STATEMENTS (UNAUDITED)

PERRIGO COMPANY PLC
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(in millions, except per share amounts)
(unaudited)
 
  Three Months Ended Six Months Ended
  July 2,
2022
July 3,
2021
July 2,
2022
July 3,
2021
Net sales $ 1,121.7  $ 981.1  $ 2,196.2  $ 1,991.1 
Cost of sales 749.6  632.1  1,486.3  1,273.7 
Gross profit 372.1  349.0  709.9  717.4 
Operating expenses
Distribution 29.5  24.1  53.9  45.8 
Research and development 31.5  33.0  60.8  64.1 
Selling 150.8  139.8  286.4  275.2 
Administration 157.8  110.4  280.1  237.6 
Impairment charges —  158.6  —  158.6 
Restructuring 9.5  9.0  13.1  10.7 
Other operating expense (income), net (0.1) —  0.8  — 
Total operating expenses 379.0  474.9  695.1  792.0 
Operating income (loss) (6.9) (125.9) 14.8  (74.6)
Interest expense, net 38.3  31.6  74.1  63.6 
Other (income) expense, net 53.8  (0.4) 52.7  1.9 
Loss on extinguishment of debt 9.3  —  9.3  — 
Income (loss) from continuing operations before income taxes (108.3) (157.1) (121.3) (140.1)
Income tax expense (benefit) (43.4) (45.2) (55.1) (31.0)
Income (loss) from continuing operations (64.9) (111.9) (66.2) (109.1)
Income (loss) from discontinued operations, net of tax (0.2) 54.2  (1.4) 89.5 
Net income (loss) $ (65.1) $ (57.7) $ (67.6) $ (19.6)
Earnings (loss) per share
Basic
Continuing operations $ (0.48) $ (0.84) $ (0.49) $ (0.82)
Discontinued operations —  0.41  (0.01) 0.67 
Basic earnings (loss) per share $ (0.48) $ (0.43) $ (0.50) $ (0.15)
Diluted
Continuing operations $ (0.48) $ (0.84) $ (0.49) $ (0.82)
Discontinued operations —  0.41  (0.01) 0.67 
Diluted earnings (loss) per share $ (0.48) $ (0.43) $ (0.50) $ (0.15)
Weighted-average shares outstanding
Basic 134.6  133.6  134.3  133.4 
Diluted 134.6  133.6  134.3  133.4 

See accompanying Notes to the Condensed Consolidated Financial Statements.
2

Perrigo Company plc - Item 1
PERRIGO COMPANY PLC
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME
(in millions)
(unaudited)
Three Months Ended Six Months Ended
July 2,
2022
July 3,
2021
July 2,
2022
July 3,
2021
Net income (loss) $ (65.1) $ (57.7) $ (67.6) $ (19.6)
Other comprehensive income (loss):
Foreign currency translation adjustments (182.5) 32.5  (207.0) (79.1)
Change in fair value of derivative financial instruments, net of tax 21.2  (1.3) 31.5  (7.3)
Change in post-retirement and pension liability, net of tax (0.5) (0.8) (6.8) (1.5)
Other comprehensive income (loss), net of tax (161.8) 30.4  (182.3) (87.9)
Comprehensive income (loss) $ (226.9) $ (27.3) $ (249.9) $ (107.5)

See accompanying Notes to the Condensed Consolidated Financial Statements.

3

Perrigo Company plc - Item 1
PERRIGO COMPANY PLC
CONDENSED CONSOLIDATED BALANCE SHEETS
(in millions, except per share amounts)
(unaudited)

July 2,
2022
December 31,
2021
Assets
Cash and cash equivalents $ 485.3  $ 1,864.9 
Accounts receivable, net of allowance for credit losses of $7.3 and $7.2, respectively
750.3  652.9 
Inventories 1,079.6  1,020.2 
Prepaid expenses and other current assets 336.3  305.8 
Current assets held for sale —  16.1 
Total current assets 2,651.5  3,859.9 
Property, plant and equipment, net 840.3  864.1 
Operating lease assets 207.1  166.9 
Goodwill and indefinite-lived intangible assets 3,582.5  3,004.7 
Definite-lived intangible assets, net 3,222.7  2,146.1 
Deferred income taxes 6.9  6.5 
Other non-current assets 408.6  377.5 
Total non-current assets 8,268.1  6,565.8 
Total assets $ 10,919.6  $ 10,425.7 
Liabilities and Shareholders’ Equity
Accounts payable $ 490.4  $ 411.2 
Payroll and related taxes 104.1  118.5 
Accrued customer programs 143.6  125.6 
Other accrued liabilities 240.7  279.4 
Accrued income taxes 5.0  16.5 
Current indebtedness 30.8  603.8 
Current liabilities held for sale —  32.9 
Total current liabilities 1,014.6  1,587.9 
Long-term debt, less current portion 4,086.1  2,916.7 
Deferred income taxes 392.1  239.3 
Other non-current liabilities 577.0  530.1 
Total non-current liabilities 5,055.2  3,686.1 
Total liabilities 6,069.8  5,274.0 
Contingencies - Refer to Note 15
Shareholders’ equity
Controlling interests:
Preferred shares, $0.0001 par value per share, 10 shares authorized
—  — 
Ordinary shares, €0.001 par value per share, 10,000 shares authorized
6,991.1  7,043.2 
Accumulated other comprehensive income (146.8) 35.5 
Retained earnings (accumulated deficit) (1,994.5) (1,927.0)
Total shareholders’ equity 4,849.8  5,151.7 
Total liabilities and shareholders' equity $ 10,919.6  $ 10,425.7 
Supplemental Disclosures of Balance Sheet Information
Preferred shares, issued and outstanding
—  — 
Ordinary shares, issued and outstanding
134.6  133.8 

See accompanying Notes to the Condensed Consolidated Financial Statements.
4

Perrigo Company plc - Item 1
PERRIGO COMPANY PLC
CONDENSED CONSOLIDATED STATEMENTS OF SHAREHOLDERS’ EQUITY
(in millions, except per share amounts)
(unaudited)
  Ordinary Shares
Issued
Accumulated
Other
Comprehensive
Income
Retained
Earnings
(Accumulated Deficit)
Total
  Shares Amount
Balance at December 31, 2020 133.1  $ 7,118.2  $ 395.0  $ (1,858.1) $ 5,655.1 
Net income —  —  —  38.1  38.1 
Other comprehensive loss —  —  (118.3) —  (118.3)
Restricted stock plan 0.6  —  —  —  — 
Compensation for stock options —  0.4  —  —  0.4 
Compensation for restricted stock —  24.6  —  —  24.6 
Cash dividends, $0.24 per share
—  (32.6) —  —  (32.6)
Shares withheld for payment of employees' withholding tax liability (0.2) (9.3) —  —  (9.3)
Balance at April 3, 2021 133.5  $ 7,101.3  $ 276.7  $ (1,820.0) $ 5,558.0 
Net loss —  —  —  (57.7) (57.7)
Other comprehensive income —  —  30.4  —  30.4 
Restricted stock plan
0.1  —  —  —  — 
Compensation for stock options —  0.2  —  —  0.2 
Compensation for restricted stock —  13.9  —  —  13.9 
Cash dividends, $0.24 per share
—  (32.5) —  —  (32.5)
Shares withheld for payment of employees' withholding tax liability —  (1.2) —  —  (1.2)
Balance at July 3, 2021 133.6  $ 7,081.7  $ 307.1  $ (1,877.7) $ 5,511.1 

  Ordinary Shares
Issued
Accumulated
Other
Comprehensive
Income
Retained
Earnings
(Accumulated Deficit)
Total
  Shares Amount
Balance at December 31, 2021 133.8  $ 7,043.2  $ 35.5  $ (1,927.0) $ 5,151.7 
Net loss —  —  —  (2.4) (2.4)
Other comprehensive loss —  —  (20.5) —  (20.5)
Restricted stock plan 1.2  —  —  —  — 
Compensation for restricted stock —  26.3  —  —  26.3 
Cash dividends, $0.26 per share
—  (34.2) —  —  (34.2)
Shares withheld for payment of employees' withholding tax liability (0.4) (16.4) —  —  (16.4)
Balance at April 2, 2022 134.6  $ 7,018.9  $ 15.0  $ (1,929.4) $ 5,104.5 
Net loss —  —  —  (65.1) (65.1)
Other comprehensive income —  —  (161.8) —  (161.8)
Compensation for restricted stock —  9.0  —  —  9.0 
Cash dividends, $0.26 per share
—  (35.4) —  —  (35.4)
Shares withheld for payment of employees' withholding tax liability —  (1.4) —  —  (1.4)
Balance at July 2, 2022 134.6  $ 6,991.1  $ (146.8) $ (1,994.5) $ 4,849.8 

See accompanying Notes to the Condensed Consolidated Financial Statements.
5

Perrigo Company plc - Item 1
PERRIGO COMPANY PLC
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(in millions)
(unaudited)
Six Months Ended
  July 2,
2022
July 3,
2021
Cash Flows From (For) Operating Activities
Net income (loss) $ (67.6) $ (19.6)
Adjustments to derive cash flows:
Depreciation and amortization 153.0  165.3 
Foreign currency remeasurement loss 39.4  — 
Share-based compensation 37.3  39.1 
Restructuring charges 13.1  10.7 
Deferred income taxes 12.6  (25.4)
Loss on sale of business 1.4  — 
Impairment charges —  158.6 
(Gain) on sale of assets (5.8) — 
Amortization of debt premium (4.3) (1.4)
Other non-cash adjustments, net (4.8) 18.8 
Subtotal 174.3  346.1 
Increase (decrease) in cash due to:
Accounts receivable (56.4) (108.2)
Inventories (50.5) (106.0)
Prepaid expenses 16.8  1.8 
Accounts payable 64.2  (22.5)
Payroll and related taxes (38.8) (61.1)
Accrued customer programs 16.9  4.3 
Accrued liabilities 14.2  (32.1)
Accrued income taxes (99.9) (135.6)
Other, net 21.4  31.2 
Subtotal (112.1) (428.2)
Net cash from (for) operating activities 62.2  (82.1)
Cash Flows From (For) Investing Activities
Proceeds from royalty rights 2.0  1.9 
Settlement of acquisition-related foreign currency derivatives (37.1) — 
Acquisitions of businesses, net of cash acquired (1,901.4) — 
Asset acquisitions (10.0) (70.6)
Additions to property, plant and equipment (48.7) (68.4)
Net proceeds from sale of businesses 58.7  — 
Proceeds from sale of assets 24.8  — 
Other investing, net —  1.3 
Net cash from (for) investing activities (1,911.7) (135.8)
Cash Flows From (For) Financing Activities
Issuances of long-term debt 1,587.7  — 
Payments on long-term debt (958.9) — 
Borrowings (repayments) of revolving credit agreements and other financing, net —  (5.8)
Payments for debt issuance costs
(19.5) — 
Premiums on early debt retirement (12.2) — 
Cash dividends (69.6) (65.1)
Other financing, net (20.4) (13.5)
Net cash from (for) financing activities 507.1  (84.4)
Effect of exchange rate changes on cash and cash equivalents (51.6) (3.2)
Net increase (decrease) in cash and cash equivalents (1,394.0) (305.5)
Cash and cash equivalents of continuing operations, beginning of period 1,864.9  631.5 
Cash and cash equivalents held for sale, beginning of period 14.4  10.0 
Less cash and cash equivalents held for sale, end of period —  (18.5)
Cash and cash equivalents of continuing operations, end of period $ 485.3  $ 317.5 

See accompanying Notes to the Condensed Consolidated Financial Statements.
6

Perrigo Company plc - Item 1
Note 1


NOTE 1 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

General Information

The Company

Perrigo Company plc was incorporated under the laws of Ireland on June 28, 2013 and became the successor registrant of Perrigo Company, a Michigan corporation, on December 18, 2013 in connection with the acquisition of Elan Corporation, plc ("Elan"). Unless the context requires otherwise, the terms "Perrigo," the "Company," "we," "our," "us," and similar pronouns used herein refer to Perrigo Company plc, its subsidiaries, and all predecessors of Perrigo Company plc and its subsidiaries.

Our vision is to make lives better by bringing Quality, Affordable Self-Care Products that consumers trust everywhere they are sold. We are a leading provider of over-the-counter ("OTC") health and wellness solutions that are designed to enhance individual well-being.

Basis of Presentation

The accompanying unaudited Condensed Consolidated Financial Statements have been prepared in accordance with U.S. generally accepted accounting principles ("GAAP") for interim financial information and with the instructions to Article 10 of Regulation S-X. Accordingly, they do not include all of the information and footnotes required by GAAP for complete financial statements. The unaudited Condensed Consolidated Financial Statements should be read in conjunction with the Consolidated Financial Statements and footnotes included in our Annual Report on Form 10-K for the year ended December 31, 2021. In the opinion of management, all adjustments (consisting of normal recurring accruals and other adjustments) considered necessary for a fair presentation of the unaudited Condensed Consolidated Financial Statements have been included and include our accounts and the accounts of all majority-owned subsidiaries. All intercompany transactions and balances have been eliminated in consolidation.

Segment Reporting

Our reporting and operating segments are as follows:

Consumer Self-Care Americas ("CSCA") comprises our consumer self-care business (OTC, infant formula, and oral care categories, and contract manufacturing) in the U.S. and Canada, and HRA Pharma self-care business (Women's Health and Skin-Care categories) in the U.S. and Canada since it was acquired on April 29, 2022. CSCA previously included our Mexico and Brazil-based OTC businesses ("Latin America businesses") until they were disposed on March 9, 2022.

Consumer Self-Care International ("CSCI") comprises our consumer self-care business in Europe and Australia, which are primarily branded, our store brand business in the United Kingdom and parts of Europe and Asia, and HRA Pharma self-care business (Women's Health, Skin-Care and Rare-Disease categories) in Europe since it was acquired on April 29, 2022.

We previously had an RX segment, which was comprised of our prescription pharmaceuticals business in
the U.S. and other pharmaceuticals and diagnostic business in Israel, which businesses have been divested. Following the divestiture, there were no substantial assets or operations left in this segment. The RX segment was reported as Discontinued Operations in 2021, and is presented as such for all periods in this report (refer to Note 8).

Non-U.S. Operations

We translate our non-U.S. dollar-denominated operations’ assets and liabilities into U.S. dollars at current rates of exchange as of the balance sheet date and income and expense items at the average exchange rate for the
reporting period. Translation adjustments resulting from exchange rate fluctuations are recorded in the cumulative
translation account, a component of Accumulated other comprehensive income (loss) ("AOCI"). Gains or losses
from foreign currency transactions are included in Other (income) expense, net.
7

Perrigo Company plc - Item 1
Note 1


Allowance for Credit Losses
Expected credit losses on trade receivables and contract assets are measured collectively by geographic location. The estimate of expected credit losses considers historical credit loss information that is adjusted for current conditions and for reasonable and supportable forecasts. Historical credit loss experience provides the primary basis for estimation of expected credit losses. Adjustments to historical loss information may be made for significant changes in a geographic location’s economic conditions. Receivables that do not share risk characteristics are evaluated on an individual basis. These receivables are not included in the collective evaluation.
The allowance for credit losses is a valuation account that is deducted from the instruments’ cost basis to present the net amount expected to be collected. Trade receivables and contract assets are charged off against the allowance when the balance is no longer deemed collectible.
The following table presents the allowance for credit losses activity (in millions):
Three Months Ended Six Months Ended
July 2, 2022 July 3, 2021 July 2, 2022 July 3, 2021
Balance at beginning of period $ 7.1  $ 9.1  $ 7.2  $ 6.5 
Provision for credit losses, net 2.2  0.4  2.0  3.7 
Receivables written-off (1.7) (0.6) (1.9) (0.9)
Transfer to held for sale —  (1.4) —  (1.4)
Currency translation adjustment (0.3) 0.2  —  (0.2)
Balance at end of period $ 7.3  $ 7.7  $ 7.3  $ 7.7 

NOTE 2 – REVENUE RECOGNITION

Revenue is recognized when or as a customer obtains control of promised products. The amount of revenue recognized reflects the consideration we expect to be entitled to receive in exchange for these products.

Disaggregation of Revenue

We generated net sales in the following geographic locations(1) (in millions):
Three Months Ended Six Months Ended
July 2, 2022 July 3, 2021 July 2, 2022 July 3, 2021
U.S. $ 717.6  $ 590.3  $ 1,400.6  $ 1,201.6 
Europe(2)
381.9  348.1  733.6  704.1 
All other countries(3)
22.2  42.7  62.0  85.4 
Total net sales $ 1,121.7  $ 981.1  $ 2,196.2  $ 1,991.1 

(1) The net sales by geographic locations is derived from the location of the entity that sells to a third party.
(2) Includes Ireland net sales of $7.3 million and $13.9 million for the three and six months ended July 2, 2022, respectively, and $5.3 million and $9.8 million for the three and six months ended July 3, 2021, respectively.
(3) Includes net sales generated primarily in Mexico, Australia and Canada.

Product Category
        
As a result of the completed acquisition of HRA Pharma, the Company has updated its global reporting product categories beginning in the second quarter of 2022. These product category updates have been adjusted retrospectively to reflect the changes. The following updates have no impact on the Company's historical consolidated financial position, results of operations, or cash flows:
The creation of a new "Women's Health" reporting category, comprised of the women's health portfolio of HRA Pharma, in addition to legacy Perrigo women's health products;
The creation of a new "Skin Care" reporting category, comprised of all of the products in the legacy Perrigo "Skincare and Personal Hygiene" category except for legacy Perrigo women's health products; and
The "Other" category in the CSCI segment now includes the HRA Pharma Rare Diseases business.
8

Perrigo Company plc - Item 1
Note 2


The following is a summary of our net sales by category (in millions):
Three Months Ended Six Months Ended
July 2, 2022 July 3, 2021 July 2, 2022 July 3, 2021
CSCA(1)
Upper Respiratory $ 145.9  $ 105.3  $ 298.7  $ 223.9 
Nutrition 125.1  95.8  252.3  188.0 
Digestive Health 125.1  115.0  243.7  233.4 
Pain and Sleep-Aids 102.6  89.4  205.5  184.5 
Oral Care 76.6  75.7  147.0  150.7 
Healthy Lifestyle 67.3  64.7  134.9  140.9 
Skin Care 48.6  47.1  89.5  92.7 
Women's Health 12.0  8.1  20.2  18.3 
Vitamins, Minerals, and Supplements ("VMS") 8.2  8.4  15.9  16.2 
Other CSCA(2)
16.6  12.8  30.3  14.2 
Total CSCA 728.0  622.3  1,438.0  1,262.8 
CSCI
Skin Care 120.3  98.7  209.7  190.1 
Upper Respiratory 59.8  42.4  121.4  85.1 
Pain and Sleep-Aids 48.8  48.6  101.8  97.7 
VMS 47.5  53.9  100.2  116.6 
Healthy Lifestyle 38.5  46.7  80.4  97.4 
Women's Health 24.4  14.4  37.4  28.7 
Oral Care 20.6  22.5  44.9  47.5 
Digestive Health 4.8  4.9  9.2  9.8 
Other CSCI(3)
29.0  26.7  53.2  55.4 
Total CSCI 393.7  358.8  758.2  728.3 
Total net sales $ 1,121.7  $ 981.1  $ 2,196.2  $ 1,991.1 

(1) Includes net sales from our OTC contract manufacturing business.
(2) Consists primarily of product sales and royalty income related to supply and distribution agreements, diagnostic products and other miscellaneous or otherwise uncategorized product lines and markets, none of which is greater than 10% of the segment net sales.
(3) Consists primarily of liquid licensed products, our distribution business, rare disease products, and other miscellaneous or otherwise uncategorized product lines and markets, none of which is greater than 10% of the segment net sales.

While the majority of revenue is recognized at a point in time, certain of our product revenue is recognized over time. Customer contracts recognized over time exist predominately in contract manufacturing arrangements, which occur in both the CSCA and CSCI segments. Contract manufacturing revenue was $88.2 million and $168.4 million for the three and six months ended July 2, 2022, respectively, and $69.8 million and $132.9 million for the three and six months ended July 3, 2021, respectively.

We also recognize a portion of the store brand OTC product revenues in the CSCA segment over time; however, the timing difference between over time and point in time revenue recognition for store brand contracts is not significant due to the short time period between the customization of the product and shipment or delivery.

Contract Balances

The following table provides information about contract assets from contracts with customers (in millions):
Balance Sheet Location July 2, 2022 December 31, 2021
Short-term contract assets Prepaid expenses and other current assets $ 26.8  $ 40.2 

9

Perrigo Company plc - Item 1
Note 3

NOTE 3 – ACQUISITIONS AND DIVESTITURES
Acquisitions During the Six Months Ended July 2, 2022

HRA Pharma

On April 29, 2022, we completed the previously announced acquisition of 100% of the outstanding equity interest in HRA Pharma for total consideration of €1.8 billion, or approximately $1.9 billion. We funded the transaction with cash on hand and borrowings under our New Senior Secured Credit Facilities (as defined in Note 11).

HRA Pharma is a self-care based company with consumer brands such as Compeed®, ellaOne® and Mederma®, as well as a trusted rare disease portfolio. The acquisition completed our transformation to a consumer self-care company. HRA Pharma’s operations are reported in both our CSCA and CSCI segments.

The acquisition of HRA Pharma was accounted for as a business combination and has been reported in our Consolidated Statements of Operations as of the acquisition date. From April 29, 2022 through July 2, 2022, HRA Pharma generated net sales of $57.8 million and a net loss of $13.1 million, inclusive of $6.5 million of cost of goods sold related to the acquisition step up to fair value on inventories sold and $16.4 million of amortization related to intangible assets recognized on acquisition.

During three and six months ended July 2, 2022, we incurred $36.3 million and $43.3 million of transaction costs related to the acquisition (legal, banking and other professional fees), respectively. The amounts were recorded in Administration expense and were not allocated to an operating segment.

We are in the process of gathering significant relevant information needed to complete the valuation for the assets acquired and liabilities assumed. As a result, the initial accounting for the acquisition is incomplete. The provisional acquisition amounts recognized for assets acquired and liabilities assumed will be finalized as soon as possible but no later than one year from the acquisition date. The final determination may result in asset and liability fair values and tax bases that differ from the preliminary estimates and require changes to the preliminary amounts recognized.

10

Perrigo Company plc - Item 1
Note 3

The following table summarizes the consideration paid for HRA Pharma and the provisional amounts of the assets acquired and liabilities assumed (in millions):
HRA Pharma
Purchase Price $ 1,945.6 
Assets Acquired
Cash and cash equivalents $ 44.1 
Accounts receivable 78.1 
Inventories 38.5 
Prepaid expenses and other current assets 16.8 
Property, plant and equipment 4.6 
Operating lease assets 9.7 
Goodwill 616.2 
Definite-lived intangible assets
Trademarks and trade names 1,072.3 
Developed product technology 170.2 
Distribution networks 82.3 
Indefinite lived intangibles
In-process research and development 63.3 
Total intangible assets 1,388.1 
Deferred income taxes 11.2 
Other non-current assets 0.8 
Total assets 2,208.1 
Liabilities assumed
Accounts payable 44.5 
Payroll and related taxes 16.1 
Accrued customer programs 9.0 
Other accrued liabilities 13.9 
Deferred income taxes 168.8 
Other non-current liabilities 10.1 
Total liabilities 262.4 
Non-Controlling Interest 0.1 
Net Assets Acquired $ 1,945.6 
11

Perrigo Company plc - Item 1
Note 3


Goodwill of $616.2 million arising from the acquisition consists largely of the anticipated growth from new product sales, sales to new customers, HRA Pharma's assembled workforce, and the synergies expected from combining the operations of Perrigo and HRA Pharma. Goodwill of $106.1 million and $510.1 million was allocated to our CSCA and CSCI segments, respectively. We are currently evaluating the tax deductibility of the provisional goodwill; however, we do not expect deductibility for income tax purposes. The definite-lived intangible assets acquired consist of trademarks and trade names, developed product technologies, and distribution networks. Trademarks and trade names were assigned useful lives that range from 20 to 26 years. Developed product technologies were assigned 8 to 21-year useful lives. Distribution networks were assigned useful lives ranging from 2 to 23-years reflecting the intent to integrate certain external distributors and sales forces within the CSCI segment. Trademarks and trade names, developed product technology, and in-process research and development ("IPR&D") were valued using the multi-period excess earnings method. Significant judgment was applied in estimating the fair value of the intangible assets acquired, which involved the use of significant estimates and assumptions with respect to the timing and amounts of cash flow projections, including revenue growth rates, projected profit margins, and discount rates.

Pro Forma Impact of Business Combinations

The following table presents unaudited pro forma information as if the HRA Pharma acquisition had occurred on January 1, 2021 and had been combined with the results reported in our Consolidated Statements of Operations for all periods presented (in millions):
Three Months Ended Six Months Ended
(Unaudited) July 2, 2022 July 3, 2021 July 2, 2022 July 3, 2021
Net sales $ 1,151.3  $ 1,069.2  $ 2,304.7  $ 2,146.2 
Income (loss) from continuing operations(1)
$ (39.5) $ (123.6) $ (42.6) $ (213.8)
(1) Includes $66.3 million of nonrecurring acquisition-related charges for the six months ended July 3, 2021.

The unaudited pro forma information is presented for information purposes only and is not indicative of the results that would have been achieved if the acquisition had taken place at such time. The unaudited pro forma information presented above includes adjustments primarily for amortization charges for acquired intangible assets, depreciation of property, plant and equipment that have been revalued, certain acquisition-related charges, and related tax effects.

Divestitures During the Six Months Ended July 2, 2022

On March 9, 2022, we completed the sale of our Latin America businesses to Advent International for total consideration of $23.9 million, consisting of $5.4 million in cash, installment receivables due 12 and 18 months from completion totaling $11.3 million based on the Mexican peso exchange rate at the time of sale, and contingent consideration of $7.2 million based on the Brazilian real exchange rate at the time of sale. The sale resulted in a pre-tax loss of $1.4 million, net of professional fees, recorded in Other operating expense, net on the Condensed Statements of Operations.

On March 24, 2022, we completed the sale of ScarAway®, a leading U.S. OTC scar management brand, to Alliance Pharmaceuticals Ltd. for cash consideration of $20.7 million. The sale resulted in a pre-tax gain of $3.6 million recorded in our CSCA segment in Other operating expense, net on the Condensed Statements of Operations.

Divestitures During the Year Ended December 31, 2021

RX business

Refer to Note 8 - Discontinued Operations for details on the sale of the RX business.

12

Perrigo Company plc - Item 1
Note 4

NOTE 4 – GOODWILL AND INTANGIBLE ASSETS

Goodwill

Changes in the carrying amount of goodwill, by reportable segment, were as follows (in millions):

December 31,
2021
Business acquisitions Currency translation adjustments July 2,
2022
CSCA(1)
$ 1,902.4  $ 106.1  $ (1.6) $ 2,006.9 
CSCI(2)
1,097.0  510.1  (99.1) 1,508.0 
Total goodwill $ 2,999.4  $ 616.2  $ (100.7) $ 3,514.9 

(1) We had no accumulated goodwill impairments as of July 2, 2022 and $6.1 million as of December 31, 2021.
(2) We had accumulated goodwill impairments of $878.4 million as of July 2, 2022 and as of December 31, 2021.

Intangible Assets

Intangible assets and related accumulated amortization consisted of the following (in millions):
  July 2, 2022 December 31, 2021
  Gross Accumulated
Amortization
Gross Accumulated
Amortization
Indefinite-lived intangibles:
Trademarks, trade names, and brands $ 3.2  $ —  $ 3.5  $ — 
In-process research and development 64.4  —  1.8  — 
Total indefinite-lived intangibles $ 67.6  $ —  $ 5.3  $ — 
Definite-lived intangibles:
Distribution and license agreements and supply agreements $ 80.1  $ 55.8  $ 73.2  $ 56.9 
Developed product technology, formulations, and product rights 464.7  198.0  300.2  191.4 
Customer relationships and distribution networks 1,788.8  883.4  1,820.7  887.8 
Trademarks, trade names, and brands 2,433.5  407.2  1,482.3  394.2 
Non-compete agreements 2.1  2.1  2.1  2.1 
Total definite-lived intangibles $ 4,769.2  $ 1,546.5  $ 3,678.5  $ 1,532.4 
Total intangible assets $ 4,836.8  $ 1,546.5  $ 3,683.8  $ 1,532.4 

We recorded amortization expense of $62.4 million and $110.9 million for the three and six months ended July 2, 2022, respectively, and $53.4 million and $106.6 million for the three and six months ended July 3, 2021, respectively.

On March 17, 2022, we announced that we received final approval from the U.S. Food and Drug Administration for the over-the-counter use of Nasonex® 24HR Allergy (mometasone furoate monohydrate 50mcg). The approval triggered a $10.0 million milestone payment to the licensor, which was made in the second quarter of 2022 and capitalized as a definite-lived intangible asset.

13

Perrigo Company plc - Item 1
Note 5

NOTE 5 – INVENTORIES

Major components of inventory were as follows (in millions):

 
July 2, 2022 December 31, 2021
Finished goods $ 582.1  $ 549.2 
Work in process 265.5  251.9 
Raw materials 232.0  219.1 
Total inventories $ 1,079.6  $ 1,020.2 

NOTE 6 – FAIR VALUE MEASUREMENTS

The table below summarizes the valuation of our financial instruments carried at fair value by the applicable pricing categories (in millions):
July 2, 2022 December 31, 2021
Level 1 Level 2 Level 3 Level 1 Level 2 Level 3
Measured at fair value on a recurring basis:
Assets:
Investment securities
$ —  $ —  $ —  $ 0.4  $ —  $ — 
Foreign currency forward contracts
—  4.9  —  —  5.7  — 
Cross-currency swap
—  38.7  —  —  —  — 
Interest rate swap agreements —  4.8  —  —  —  — 
Foreign currency option contracts —  —  —  —  5.0  — 
Total assets $ —  $ 48.4  $ —  $ 0.4  $ 10.7  $ — 
Liabilities:
Cross-currency swap $ —  $ —  $ —  $ —  $ 13.8  $ — 
Foreign currency forward contracts —  3.1  —  —  2.4  — 
Interest rate swap agreements —  11.0  —  —  —  — 
Total liabilities $ —  $ 14.1  $ —  $ —  $ 16.2  $ — 
Measured at fair value on a non-recurring basis:
Assets:
Goodwill(1)
$ —  $ —  $ —  $ —  $ —  $ 71.7 
Total assets $ —  $ —  $ —  $ —  $ —  $ 71.7 
Liabilities
Liabilities held for sale, net(2)
$ —  $ —  $ —  $ —  $ —  $ 16.8 
Total liabilities $ —  $ —  $ —  $ —  $ —  $ 16.8 

(1)     During the year ended December 31, 2021, goodwill with a carrying value of $81.7 million was written down to a fair value of $71.7 million
(2)     We measured the net assets held for sale for impairment purposes and recorded a total impairment of $162.2 million, resulting in a net liability held for sale balance as of December 31, 2021.

There were no transfers within Level 3 fair value measurements during the three and six months ended July 2, 2022 or the year ended December 31, 2021.

Non-recurring Fair Value Measurements

The non-recurring fair values represent only those assets whose carrying values were adjusted to fair value during the prior reporting period.
14

Perrigo Company plc - Item 1
Note 6


Fixed Rate Long-term Debt    

Our fixed rate long-term debt consisted of the following (in millions):
July 2, 2022 December 31, 2021
Level 1 Level 2 Level 1 Level 2
Public Bonds
Carrying Value (excluding discount) $ 2,544.4  $ —  $ 2,760.0  $ — 
Fair value $ 2,271.1  $ —  $ 2,847.2  $ — 
Private placement note
Carrying value (excluding premium) $ —  $ —  $ —  $ 153.5 
Fair value $ —  $ —  $ —  $ 162.6 

The fair values of our public bonds for all periods were based on quoted market prices. The fair values of our private placement note for all periods were based on interest rates offered for borrowings of a similar nature and remaining maturities.

The carrying amounts of our other financial instruments, consisting of cash and cash equivalents, accounts receivable, accounts payable, short-term debt, revolving credit agreements, promissory notes related to our equity method investment in Kazmira, and variable rate long-term debt, approximate their fair value.

NOTE 7 – INVESTMENTS

The following table summarizes the measurement category, balance sheet location, and balances of our equity securities (in millions):
Measurement Category Balance Sheet Location July 2, 2022 December 31, 2021
Fair value method Prepaid expenses and other current assets $ 0.3  $ 0.4 
Fair value method(1)
Other non-current assets $ 1.7  $ 1.8 
Equity method Other non-current assets $ 65.1  $ 66.4 

(1)     Measured at fair value using the Net Asset Value practical expedient.

The following table summarizes the expense (income) recognized in earnings of our equity securities (in millions):
Three Months Ended Six Months Ended
Measurement Category Income Statement Location July 2, 2022 July 3, 2021 July 2,
2022
July 3,
2021
Fair value method Other (income) expense, net $ —  $ 0.9  $ 0.2  $ 0.9 
Equity method Other (income) expense, net $ 0.6  $ —  $ 1.3  $ 0.7 
    
NOTE 8 – DISCONTINUED OPERATIONS

Our discontinued operations consist of our generic prescription pharmaceuticals business in the U.S. and our pharmaceuticals and diagnostic businesses in Israel (collectively, the “RX business”).

On March 1, 2021, we announced a definitive agreement to sell our RX business to Altaris Capital Partners, LLC (“Altaris”). On July 6, 2021, we completed the sale of the RX business for aggregate consideration of $1.55 billion. The consideration included a $53.3 million reimbursement related to an Abbreviated New Drug Application (“ANDA") for a generic topical lotion which Altaris delivered in cash to Perrigo pursuant to the terms of the definitive agreement during the three months ended April 2, 2022. The sale resulted in a 2021 pre-tax gain, net
15

Perrigo Company plc - Item 1
Note 8
of professional fees, of $47.5 million recorded in Other (income) expense, net on the Statement of Operations for discontinued operations. The gain included a $159.3 million increase from the write-off of foreign currency translation adjustment from Accumulated other comprehensive income. The transaction gain was subject to final settlements under the Agreement, which were finalized in the first quarter of 2022 with no change to the gain reported for the year ended December 31, 2021.

As of March 1, 2021, we determined that the RX business met the criteria to be classified as a discontinued operation and, as a result, its historical financial results have been reflected in our consolidated financial statements as a discontinued operation and its assets and liabilities have been classified as held for sale. We ceased recording depreciation and amortization on the RX business assets from March 1, 2021. We have not allocated any general corporate overhead to the discontinued operation.

Under the terms of a transition services agreement ("TSA"), we will provide transition services for up to 24 months after the close of the transaction. We also entered into reciprocal supply agreements pursuant to which Perrigo will supply certain products to the RX business and the RX business will supply certain products to Perrigo. The supply agreements have a term of four years, extendable up to seven years by the party who is the purchaser of the products under such agreement. We also extended distribution rights to the RX business for certain OTC products owned and manufactured by Perrigo that may be fulfilled through pharmacy channels, in return for a share of the net profits.

The following table summarizes the results of the TSA and supply agreements:

Three Months Ended Six Months Ended
Financial Statement Location July 2, 2022 July 2, 2022
TSA income recognized Administration expense $ 3.4  $ 6.8 
TSA income collected Administration expense $ 2.3  $ 5.7 
Product & Royalty sales recognized Net sales $ 38.0  $ 70.8 
Product & Royalty sales collected Net sales $ 37.9  $ 68.6 
Purchases Inventory $ 6.4  $ 15.1 
Inventory payments Inventory $ 3.7  $ 18.0 

Additionally, under the TSA, we net settle any receipts received or payments made on behalf of the RX business’ customers or vendors. As of July 2, 2022, we recorded a receivable in the amount of $15.1 million in Prepaid expenses and other current assets for the net reimbursement due to Perrigo.

In the transaction, Perrigo retained certain pre-closing liabilities arising out of antitrust (refer to Note 15 - Contingencies under the header "Price-Fixing Lawsuits") and opioid matters and the Company’s Albuterol recall, subject to, in each case, Altaris' obligation to indemnify the Company for fifty percent of these liabilities up to an aggregate cap on Altaris' obligation of $50.0 million. We did not incur changes in liabilities or request payments from Altaris related to the indemnity of these liabilities during the three and six months ended July 2, 2022.
16

Perrigo Company plc - Item 1
Note 8

For the three and six months ended July 2, 2022, we incurred $0.2 million and $1.4 million of net loss, respectively, from discontinued operations, which primarily related to legal fees for retained liabilities and related tax benefit. Prior year income from discontinued operations, net of tax was as follows (in millions):

  Three Months Ended Six Months Ended
  July 3, 2021 July 3, 2021
Net sales $ 204.5  $ 404.5 
Cost of sales 119.9  258.2 
Gross profit 84.6  146.3 
Operating expenses
Distribution 2.8  6.1 
Research and development 17.3  30.6 
Selling 8.8  16.2 
Administration 12.4  30.6 
Other operating expense (income) 0.5  (0.4)
Total operating expenses 41.8  83.1 
Operating income 42.8  63.2 
Interest expense, net 0.2  0.8 
Other (income) expense, net (0.2) (1.7)
Income from discontinued operations before tax 42.8  64.1 
Income tax benefit (11.4) (25.4)
Income from discontinued operations, net of tax $ 54.2  $ 89.5 

During the three months and six months ended July 3, 2021, we incurred $2.4 million and $11.7 million, respectively, of separation costs related to the sale of the RX business, which are recorded in administration expenses. We incurred no such costs in 2022.

Select cash flow information related to discontinued operations was as follows (in millions):
Six Months Ended
  July 3, 2021
Cash flows from discontinued operations operating activities:
Depreciation and amortization $ 15.3 
Cash flows from discontinued operations investing activities:
Asset acquisitions $ (69.7)
Additions to property, plant and equipment (6.1)

Asset acquisitions related to discontinued operations consisted of two ANDAs purchased under a contractual arrangement. On December 31, 2020, we purchased an ANDA for a generic topical gel for $16.4 million, which was subsequently paid during the three months ended April 3, 2021 and on March 8, 2021, we purchased an ANDA for a generic topical lotion for $53.3 million. These ANDAs were acquired by Altaris as part of the RX business sale.


17

Perrigo Company plc - Item 1
Note 9

NOTE 9 – DERIVATIVE INSTRUMENTS AND HEDGING ACTIVITIES     

Foreign Currency Option Contracts

In September 2021, to economically hedge the foreign currency exposure associated with the planned payment of the euro-denominated purchase price for HRA Pharma, we entered into two non-designated currency option contracts with a total notional amount of $1.1 billion that were scheduled to mature in September 2022. In April 2022, due to market conditions, we unwound the two options and entered into two new undesignated options to economically hedge the purchase price for HRA Pharma for a total notional amount of $2.0 billion. All premiums associated with the HRA Pharma related currency options were settled in April 2022 for $37.1 million, and we recorded a loss within Other (income) expense of $12.7 million and $16.2 million for the three and six months ended July 2, 2022, respectively.

Interest Rate Swaps

Interest rate swap agreements are contracts to exchange fixed or floating rates over the life of the agreement without the exchange of the underlying notional amounts. The notional amounts of the interest rate swap agreements are used to measure interest to be paid or received and do not represent the amount of exposure to credit loss. The differential paid or received on the interest rate swap agreements is recognized as an adjustment to interest expense.

In April 2022, to economically hedge the interest rate risk of the New Senior Secured Credit Facilities (as defined in Note 11), we entered into five variable-to-fixed interest rate swap agreements. Three of the interest rate swaps were designated as cash flow hedges to fix the interest rate on a substantial portion of the 2022 Term Loan B Facility (as defined in Note 11). The interest rate swaps cover an interest period ranging from June 1, 2022, through April 1, 2029, on notional balances that decline from $1.0 billion to $812.5 million over the term. The other two interest rate swaps were designated as cash flow hedges to fix the interest rate on a substantial portion of the 2022 Term Loan A Facility (as defined in Note 11). The interest rate swaps cover an interest period ranging from June 1, 2022, through April 1, 2027, on notional balances that decline from $487.5 million to $387.5 million over the term.

As a designated cash flow hedge, gains and losses will be deferred in Accumulated Other Comprehensive Income (“AOCI”) and recognized within Interest expense, net when interest is paid on the New Senior Secured Credit Facilities.

Cross-currency Swaps

In April 2022, we entered into three fixed-for-fixed cross currency interest rate swaps designated as net investment hedge to hedge the EUR currency exposure of our investment in European operations. Over the term, we receive EUR interest payments and make USD interest payments followed by an exchange of notional currencies at the expiration of the contract. The following are the terms and notional amounts outstanding:

$300 million notional amount outstanding from April 20, 2022 through December 15, 2024;
$700 million notional amount outstanding from April 29, 2022 through March 15, 2026; and
$500 million notional amount outstanding from April 22, 2022 through June 15, 2030.

As a designated net investment hedge, gains and losses related to the EUR spot exchange rate will be deferred within the Cumulative Translation Adjustment, a component of AOCI, and recognized in the Statement of Operations when the hedged EUR net investment is substantially liquidated. Gains and losses on excluded components (e.g. interest differentials) will be recorded in Interest expense, net on a systematic and rational basis.

In August 2019, we entered into a cross-currency swap designated as a net investment hedge to hedge the EUR currency exposure of our net investment in European operations. This agreement is a contract to exchange floating-rate EUR payments for floating-rate USD payments through August 15, 2022. We terminated this cross-currency swap on January 28, 2022.

18

Perrigo Company plc - Item 1
Note 9

Foreign Currency Forwards

Foreign currency forward contracts were as follows (in millions):
Notional Amount
July 2, 2022 December 31, 2021
British Pound (GBP) $ 232.2  $ 135.8 
Swedish Krona (SEK) 61.2  47.8 
Danish Krone (DKK) 49.6  37.5 
European Euro (EUR) 39.1  232.6 
Chinese Yuan (CNH) 37.7  37.7 
Canadian Dollar (CAD) 29.2  29.0 
Polish Zloty (PLZ) 15.3  21.0 
Mexican Peso (MXN) 12.8  1.0 
United States Dollar (USD) 9.3  22.9 
Norwegian Krone (NOK) 7.4  11.0 
Brazilian Real (BRL) 6.8  — 
Australian Dollar (AUD) 4.0  1.6 
Turkish Lira (TRY) 3.0  3.1 
Romanian New Leu (RON) 2.2  1.6 
Switzerland Franc (CHF) 1.2  1.9 
Other 7.0  3.6 
Total $ 518.0  $ 588.1 

The maximum term of our forward currency exchange contracts is 60 months.

Effects of Derivatives on the Financial Statements

The below tables indicate the effects of all derivative instruments on the Condensed Consolidated Financial Statements. All amounts exclude income tax effects.

The balance sheet location and gross fair value of our derivative instruments were as follows (in millions):
Asset Derivatives
Fair Value
Balance Sheet Location July 2, 2022 December 31, 2021
Designated derivatives:
Foreign currency forward contracts Prepaid expenses and other current assets $ 2.9  $ 3.5 
Interest rate swap agreements Prepaid expenses and other current assets 4.8  — 
Foreign currency forward contracts Other non-current assets 0.6  1.3 
Cross-currency swap Other non-current assets 38.7  — 
Total designated derivatives $ 47.0  $ 4.8 
Non-designated derivatives:
Foreign currency forward contracts Prepaid expenses and other current assets $ 1.4  $ 0.9 
Foreign currency options Prepaid expenses and other current assets —  5.0 
Total non-designated derivatives $ 1.4  $ 5.9 

19

Perrigo Company plc - Item 1
Note 9

Liability Derivatives
Fair Value
Balance Sheet Location July 2, 2022 December 31, 2021
Designated derivatives:
Foreign currency forward contracts Other accrued liabilities $ 0.4  $ 1.2 
Cross-currency swap Other accrued liabilities —  13.8 
Interest rate swap agreements Other non-current liabilities 11.0  — 
Total designated derivatives $ 11.4  $ 15.0 
Non-designated derivatives:
Foreign currency forward contracts Other accrued liabilities $ 2.7  $ 1.2 

The following tables summarize the effect of derivative instruments designated as hedging instruments in AOCI (in millions):

Three Months Ended
July 2, 2022
Instrument Amount of Gain/(Loss) Recorded in OCI Classification of Gain/(Loss) Reclassified from AOCI into Earnings Amount of Gain/(Loss) Reclassified from AOCI into Earnings Classification of Gain/(Loss) Recognized into Earnings Related to Amounts Excluded from Effectiveness Testing Amount of Gain/(Loss) Recognized in Earnings on Derivatives Related to Amounts Excluded from Effectiveness Testing
Cash flow hedges:
Interest rate swap agreements $ (6.2) Interest expense, net $ (1.6) Interest expense, net $ — 
Foreign currency forward contracts 2.3  Net sales 0.3  Net sales (0.1)
Cost of sales (0.9) Cost of sales (0.1)
Other (income) expense, net (0.8)
$ (3.9) $ (2.2) $ (1.0)
Net investment hedges:
Cross-currency swap $ 38.7  Interest expense, net $ 3.6 
20

Perrigo Company plc - Item 1
Note 9

Six Months Ended
July 2, 2022
Instrument
Amount of Gain/(Loss) Recorded in OCI(1)
Classification of Gain/(Loss) Reclassified from AOCI into Earnings Amount of Gain/(Loss) Reclassified from AOCI into Earnings Classification of Gain/(Loss) Recognized into Earnings Related to Amounts Excluded from Effectiveness Testing Amount of Gain/(Loss) Recognized in Earnings on Derivatives Related to Amounts Excluded from Effectiveness Testing
Cash flow hedges:
Interest rate swap agreements (6.2) Interest expense, net (2.0) Interest expense, net — 
Foreign currency forward contracts (4.9) Net sales 0.5  Net sales (0.2)
Cost of sales (1.3) Cost of sales — 
Other (income) expense, net (0.7)
$ (11.1) $ (2.8) $ (0.9)
Net investment hedges:
Cross-currency swap $ 34.1  Interest expense, net $ 4.2 
(1) Net gain of $6.4 million is expected to be reclassified out of AOCI into earnings during the next 12 months.

Three Months Ended
July 3, 2021
Instrument Amount of Gain/(Loss) Recorded in OCI Classification of Gain/(Loss) Reclassified from AOCI into Earnings Amount of Gain/(Loss) Reclassified from AOCI into Earnings Classification of Gain/(Loss) Recognized into Earnings Related to Amounts Excluded from Effectiveness Testing Amount of Gain/(Loss) Recognized in Earnings on Derivatives Related to Amounts Excluded from Effectiveness Testing
Cash flow hedges:
Interest rate swap agreements $ —  Interest expense, net $ (0.4) Interest expense, net $ — 
Foreign currency forward contracts 1.1  Net sales (1.0) Net sales — 
Cost of sales 0.9  Cost of sales 0.4 
Other (income) expense, net 0.4 
$ 1.1  $ (0.5) $ 0.8 
Net investment hedges:
Cross-currency swap $ (1.5) Interest expense, net $ (1.1)

21

Perrigo Company plc - Item 1
Note 9

Six Months Ended
July 3, 2021
Instrument Amount of Gain/(Loss) Recorded in OCI Classification of Gain/(Loss) Reclassified from AOCI into Earnings Amount of Gain/(Loss) Reclassified from AOCI into Earnings Classification of Gain/(Loss) Recognized into Earnings Related to Amounts Excluded from Effectiveness Testing Amount of Gain/(Loss) Recognized in Earnings on Derivatives Related to Amounts Excluded from Effectiveness Testing
Cash flow hedges:
Interest rate swap agreements —  Interest expense, net (0.9) Interest expense, net — 
Foreign currency forward contracts (1.2) Net sales (1.9) Net sales — 
Cost of sales 2.8  Cost of sales 0.5 
Other Income/Expense $ 0.4 
$ (1.2) $ —  $ 0.9 
Net investment hedges:
Cross-currency swap $ (2.0) Interest expense, net $ (2.2)

The amounts of (income)/expense recognized in earnings related to our non-designated derivatives on the Condensed Consolidated Statements of Operations were as follows (in millions):

Three Months Ended Six Months Ended
Non-Designated Derivatives Income Statement
Location
July 2,
2022
July 3,
2021
July 2,
2022
July 3,
2021
Foreign currency forward contracts Other (income) expense, net $ 1.6  $ (3.1) $ 2.0  $ (5.9)
Interest expense, net 0.8  0.4  (0.4) 0.9 
$ 2.4  $ (2.7) $ 1.6  $ (5.0)
Foreign currency options Other (income) expense, net $ 12.7  $ —  $ 16.2  $ — 

The classification and amount of gain/(loss) recognized in earnings on fair value and hedging relationships were as follows (in millions):

22

Perrigo Company plc - Item 1
Note 9

Three Months Ended
July 2, 2022
Net Sales Cost of Sales Interest Expense, net Other (Income) Expense, net
Total amounts of income and expense line items presented on the Condensed Consolidated Statements of Operations in which the effects of fair value or cash flow hedges are recorded
$ 1,121.7  $ 749.6  $ 38.3  $ 53.8 
The effects of cash flow hedging:
Gain (loss) on cash flow hedging relationships
Foreign currency forward contracts
Amount of gain or (loss) reclassified from AOCI into earnings $ 0.3  $ (0.9) $ —  $ — 
Amount excluded from effectiveness testing recognized using a systematic and rational amortization approach $ (0.1) $ (0.1) $ —  $ (0.8)
Interest rate swap agreements
Amount of gain or (loss) reclassified from AOCI into earnings $ —  $ —  $ (1.6) $ — 

Six Months Ended
July 2, 2022
Net Sales Cost of Sales Interest Expense, net Other (Income) Expense, net
Total amounts of income and expense line items presented on the Condensed Consolidated Statements of Operations in which the effects of fair value or cash flow hedges are recorded $ 2,196.2  $ 1,486.3  $ 74.1  $ 52.7 
The effects of cash flow hedging:
Gain (loss) on cash flow hedging relationships
Foreign currency forward contracts
Amount of gain or (loss) reclassified from AOCI into earnings $ 0.5  $ (1.3) $ —  $ — 
Amount excluded from effectiveness testing recognized using a systematic and rational amortization approach $ (0.2) $ —  $ —  $ (0.7)
Treasury locks
Amount of gain or (loss) reclassified from AOCI into earnings $ —  $ —  $ —  $ — 
Interest rate swap agreements
Amount of gain or (loss) reclassified from AOCI into earnings $ —  $ —  $ (2.0) $ — 


23

Perrigo Company plc - Item 1
Note 9

Three Months Ended
July 3, 2021
Net Sales Cost of Sales Interest Expense, net Other (Income) Expense, net
Total amounts of income and expense line items presented on the Condensed Consolidated Statements of Operations in which the effects of fair value or cash flow hedges are recorded
$ 981.1  $ 632.1