Company: PRGO
Filing Date: 2025-05-07
Form Type: 10-Q
Source: 0001585364-25-000056
Chunk: 288

Company: PERRIGO Co plc
Filing Date: 2025-05-07
Form: 10-Q
Item: Part II, Item 7
Chunk 288
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 products; and

•$24.9 million decrease in operating expenses due primarily to lower selling and administrative costs of $13.5 million due primarily to Project Energize, and lower restructuring costs of $11.7 million compared to the prior year period. 

44

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

Unallocated Expenses

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

Three Months EndedMarch 29, 2025March 30, 2024$56.6 $97.4 

The decrease of $40.8 million in unallocated expenses during the three months ended March 29, 2025 compared to the prior year period was due primarily to a decrease in expenses for litigation as well as restructuring associated primarily with Project Energize. 

Interest expense, net, and Other (income) expense, net

Three Months Ended(in millions)March 29, 2025March 30, 2024Interest expense, net$39.0 $43.0 Other (income) expense, net$(0.4)$0.4 

The $4.0 million decrease in Interest Expense, net during the three months ended March 29, 2025 compared to the prior year period was due primarily to a decrease in interest expense associated with a decrease in outstanding borrowings under our Senior Secured Credit Facilities. 

Income Taxes (Consolidated) 

The effective tax rates were as follows: 

Three Months EndedMarch 29, 2025March 30, 202499.0 %104.2 %

The effective tax rate on the pre-tax income for the three months ended March 29, 2025 decreased when compared to the effective tax rate on the pre-tax loss for the three months ended March 30, 2024, primarily due to changes in the jurisdictional mix of earnings, and impacts related to accounting for income taxes in interim reporting periods for 2024, offset by changes in our reserves for uncertain tax positions in 2025. 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.

FINANCIAL CONDITION, LIQUIDITY, AND CAPITAL