Company: PRGO
Filing Date: 2025-02-28
Form Type: 10-K
Source: 0001585364-25-000014
Chunk: 255

Company: PERRIGO Co plc
Filing Date: 2025-02-28
Form: 10-K
Item: Item 8
Chunk 255
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8 25.9 State income taxes, net of federal benefit3.0 3.6 (0.3)Provision to return(3.1)(67.6)(0.5)Tax credits103.4 293.3 18.6 Change in tax law(0.2)(25.5)0.7 Change in valuation allowance(101.2)(383.9)(7.6)Change in unrecognized taxes3.3 654.7 4.4 Permanent differences(102.6)(723.3)(42.3)Legal entity restructuring— — (4.6)Taxes on unremitted earnings(0.6)4.7 (0.8)Other3.6 (8.1)(0.1)Effective income tax rate(99.3)%47.2 %5.9 %Deferred income taxes arise from temporary differences between the financial reporting and the tax reporting basis of assets and liabilities and operating loss and tax credit carryforwards for tax purposes. The components of our net deferred income tax asset (liability) are presented on a total company basis as follows (in millions): Year EndedDeferred income tax asset (liability):December 31, 2024December 31, 2023Depreciation and amortization$(382.5)$(475.9)Right of use assets(43.0)(44.4)Unremitted earnings(3.6)(3.1)Inventory basis differences27.3 30.8 Accrued liabilities24.8 26.3 Lease obligations44.1 45.3 Share-based compensation18.0 17.9 Federal benefit of unrecognized tax positions12.0 18.7 Loss and credit carryforwards449.4 438.3 R&D credit carryforwards23.8 23.8 Capitalized R&D costs39.1 31.2 Interest carryforwards88.4 50.8 Other, net(7.3)44.7 Subtotal$290.5 $204.4 Valuation allowance (1)(488.6)(440.9)Net deferred income tax liability$(198.1)$(236.5)(1) The movement in the valuation allowance balance differs from the amount in the effective tax rate reconciliation due to adjustments affecting balance sheet only items and foreign currency.The above amounts