Company: PRGO
Filing Date: 2025-08-06
Form Type: 10-Q
Source: 0001585364-25-000122
Chunk: 91

Company: PERRIGO Co plc
Filing Date: 2025-08-06
Form: 10-Q
Item: Part II, Item 1
Chunk 91
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 primarily to Project Energize.

There were no other material restructuring programs for the periods presented. All charges are recorded in Restructuring expense on the Condensed Consolidated Statements of Operations. The remaining $41.0 million liability for employee severance benefits and consulting fees is expected to be mostly paid within the next year, with the exception of the entirety of all charges recorded for the Nutrition Network Optimization, which are recorded as a long term liability on the Condensed Consolidated Balance Sheets as they are not currently expected to be paid out until 2027. 

NOTE 15 - INCOME TAXES

The effective tax rates were as follows:Three Months EndedSix Months EndedJune 28, 2025June 29, 2024June 28, 2025June 29, 2024115.7 %(42.8)%103.6%41.1%The effective tax rate on the pre-tax income for the three and six months ended June 28, 2025, increased when compared to the effective tax rate on the pre-tax loss for the three and six months ended June 29, 2024, primarily due to changes in our reserves for uncertain tax positions, and the impacts related to accounting for income taxes in interim reporting periods for 2024, offset by changes in the jurisdictional mix of earnings. For 2024, the accounting for income taxes in interim reporting periods resulted in a significant variation in the customary relationship between income tax expense and pre-tax book income which does not significantly impact 2025.The Organization for Economic Co-operation and Development (“OECD”), which represents a coalition of member countries, has recommended changes to numerous long-standing tax principles. In particular, the OECD’s Pillar Two initiative introduces a global per-country minimum tax of 15%. Pillar Two legislation has been enacted or substantively enacted in many of the jurisdictions in which we operate. We are in compliance with the OECD's Pillar Two framework. After a comprehensive assessment, we have determined that there is no material impact on our financial results as a result of these regulations.We believe that our existing global tax strategies will adequately address any necessary adjustments to comply with Pillar Two without significantly affecting our effective tax rate or overall financial position. We will continue to monitor regulatory developments to ensure ongoing compliance, but we do not anticipate any adverse effects on our operations or profitability due to these regulations.Internal Revenue Service Audits of Perrigo Company, a U.S. SubsidiaryPerrigo Company, our U.S. subsidiary