Company: PRGO
Filing Date: 2025-02-28
Form Type: 10-K
Source: 0001585364-25-000014
Chunk: 245

Company: PERRIGO Co plc
Filing Date: 2025-02-28
Form: 10-K
Item: Item 8
Chunk 245
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2.31 %Expected return on assets3.10 %3.38 %2.84 %Interest crediting rates1.38 %0.93 %0.74 %The discount rate is based on market yields at the valuation date and chosen with reference to the yields available on high quality corporate bonds, with regards to the duration of the plan's liabilities.As of December 31, 2024, the expected weighted-average long-term rate of return on assets of 3.1% was calculated based on the assumptions of the following returns for each asset class: Equities5.9 %Bonds2.8 %Absolute return fund3.8 %Insurance contracts2.8 %Other3.7 %The investment mix of the pension plans' assets is a blended asset allocation, with a diversified portfolio of shares listed and traded on recognized exchanges.     Certain of our plans have target asset allocation ranges. As of December 31, 2024, these ranges were as follows:Equities20% - 30%Bonds50% - 60%Absolute return10% - 20%Other plans do not have target asset allocation ranges, for such plans, the strategy is to invest mainly in Insurance Contracts.The purpose of the pension funds is to provide a flow of income for members in retirement. A flow of income delivered through fixed interest bonds provides a costly but close match to this objective. Equities are held within the portfolio as a means of reducing this cost, but holding equities creates a strategic risk because they give a very different pattern of return. Property investments are held to help diversify the portfolio. Investment risk is measured and monitored on an ongoing basis through annual liability measurements, periodic asset/liability studies, and investment portfolio reviews. The following table sets forth the fair value of the pension plan assets (in millions):     Year EndedDecember 31, 2024December 31, 2023Level 1Level 2Level 3TotalLevel 1Level 2Level 3TotalEquities$— $22.3 $— $22.3 $— $21.5 $— $21.5 Bonds— 49.4 — 49.4 — 54.1 — 54.1 Insurance contracts— — 51.1 51.1 — — 54.3 54.3 Absolute return fund—