Company: PRGO
Filing Date: 2025-05-07
Form Type: 10-Q
Source: 0001585364-25-000056
Chunk: 14

Company: PERRIGO Co plc
Filing Date: 2025-05-07
Form: 10-Q
Item: Item 1
Chunk 14
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 prepared a goodwill impairment test utilizing the estimated closing consideration resulting from the definitive agreement to sell the Richard Bittner Business to HBI Health & Beauty Innovations Limited. We determined the carrying value of this business exceeded the fair value and recorded an impairment in the CSCI segment (refer to Note 8).Assets (liabilities) held for sale, netDuring the three months ended March 29, 2025, we classified the Richard Bittner Business disposal group as held for sale, prepared a fair value analysis and estimated remaining costs to sell. We determined the carrying value of the net assets held for sale exceeded the fair value less cost to sell and recorded an impairment in the CSCI segment (refer to Note 3).Fixed Rate Long-term Debt    Our fixed rate long-term debt consisted of the following (in millions): March 29, 2025December 31, 2024Public BondsLevel 1Level 1Carrying value (excluding discount)$2,238.3 $2,221.8 Fair value$2,118.1 $2,083.9 The fair values of our public bonds for all periods were based on quoted market prices.

The carrying amounts of our other financial instruments, consisting of cash and cash equivalents, accounts receivable, accounts payable, short-term debt, revolving credit agreements, and variable rate long-term debt, approximate their fair value. 

NOTE 10 - DERIVATIVE INSTRUMENTS AND HEDGING ACTIVITIES      

Interest Rate Swaps We have $1.2 billion notional amount of variable-to-fixed interest rate swaps used to economically hedge interest rate risk on a substantial portion of our Term A and Term B Loans (as defined in Note 11).The interest rate swaps were designated as cash flow hedges to fix the variable interest rate. As a designated cash flow hedge, changes in fair value will be deferred in AOCI and recognized within Interest expense, net when interest is paid on the Term A and Term B Loans. As of March 29, 2025, the designated instruments used to hedge the exposure to variable interest on the Senior Secured Credit Facilities totaling $1.2 billion notional amount of which $487.5 million and $712.5 million notional amount are effective through April 2027 and April 2029, respectively.  In September 2024, we reduced our variable debt outstanding on the Senior Secured Credit Facilities, as a result, we discontinued