Company: PRGO
Filing Date: 2025-05-07
Form Type: 10-Q
Source: 0001585364-25-000056
Chunk: 215

Company: PERRIGO Co plc
Filing Date: 2025-05-07
Form: 10-Q
Item: Item 10
Chunk 215
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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 hedge accounting on $300.0 million notional amount of variable-to-fixed interest rate swaps. To economically offset the impact of these undesignated instruments, we entered into $300.0 million notional amount of 

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Perrigo Company plc - Item 1Note 10

offsetting fixed-for-variable interest rate swaps. Changes in fair value of the derivative instruments are recognized in Interest expense, net.As of March 29, 2025, the undesignated economically offsetting interest rate swaps totaling $600.0 million are effective through April 2029.Cross-currency Swaps We have $2.3 billion notional amount fixed-for-fixed cross currency interest rate swaps designated as net investment hedges to hedge the EUR currency exposure of our investment in European operations. As designated net investment hedges, gains and losses related to the EUR spot exchange rate will be deferred within the Cumulative Translation Adjustment, a component of AOCI, and recognized in the Condensed Consolidated Statements of Operations when the hedged EUR net investment is substantially liquidated. Gains and losses on excluded components (e.g., interest differentials) will be recorded in Interest expense, net on a systematic and rational basis. As of March 29, 2025, the fixed-for-fixed cross currency swaps total $2.3 billion notional amount, of which $515.0 million,