Company: PRGO
Filing Date: 2025-11-05
Form Type: 10-Q
Source: 0001585364-25-000156
Chunk: 167

Company: PERRIGO Co plc
Filing Date: 2025-11-05
Form: 10-Q
Item: Item 7
Chunk 167
---
13.9 million from favorable currency translation, and new products. Gross profit as a percentage of net sales decreased 130 basis points compared to the prior year due to the same factors impacting gross profit.

•$101.3 million decrease in operating expenses due primarily to the absence of the prior year impairment charges of $50.3 million recognized as part of the assets held for sale of the Hospital & Specialty Business and the Rare Diseases Business, decreased restructuring costs associated primarily with Project Energize and Supply Chain Reinvention activities, and lower variable costs of $35.4 million. These were partially offset by the absence of the prior year gain on the sale of branded products.

Unallocated Expenses

Unallocated expenses are comprised of certain corporate services not allocated to our reporting segments and are recorded in Operating income (loss) on the Condensed Consolidated Statements of Operations. Unallocated expenses were as follows (in millions):

Three Months EndedNine Months EndedSeptember 27, 2025September 28, 2024September 27, 2025September 28, 2024$59.5 $70.7 $175.0 $253.6 

The decrease of $11.2 million and $78.6 million in unallocated expenses during the three and nine months ended September 27, 2025, respectively, compared to the prior year periods were due primarily to a decrease in expenses for litigation, as well as lower selling and administrative costs due primarily to Project Energize. 

51

Perrigo Company plc - Item 2Unallocated, Interest, Other, and Taxes

Interest expense, net, Other (income) expense, net and Loss on extinguishment of debt

Three Months EndedNine Months Ended(in millions)September 27, 2025September 28, 2024September 27, 2025September 28, 2024Interest expense, net$40.6 $57.6 $119.2 $144.7 Other (income) expense, net$9.6 $(4.1)$11.9 $(0.5)Loss on extinguishment of debt$— $5.1 $— $5.2 

Interest expense, net

The $17.0 million and $25.5 million decrease in Interest expense, net during the three and nine months ended September 27, 2025, respectively, compared to the prior year periods was due primarily