PERRIGO Co plcPRGO
PERRIGO Co plc Goodwill & Intangibles Disclosure
GOODWILL AND INTANGIBLE ASSETS
Goodwill
Changes in the carrying amount of goodwill, by reportable segment, were as follows (in millions):
CSCA(1) | CSCI(2) | Total | |||||||||||||||
| Balance at December 31, 2023 | $ | 2,080.9 | $ | 1,448.2 | $ | 3,529.1 | |||||||||||
| Impairments | — | (27.5) | (27.5) | ||||||||||||||
Business divestitures | — | (93.1) | (93.1) | ||||||||||||||
| Currency translation adjustments | (4.8) | (83.5) | (88.3) | ||||||||||||||
| Balance at December 31, 2024 | 2,076.1 | 1,244.1 | 3,320.2 | ||||||||||||||
| (917.1) | (408.2) | (1,325.3) | |||||||||||||||
Business divestitures | — | (5.2) | (5.2) | ||||||||||||||
Transfer to assets held for sale(3) | — | (108.6) | (108.6) | ||||||||||||||
| Currency translation adjustments | 9.8 | 159.2 | 169.0 | ||||||||||||||
| Balance at December 31, 2025 | $ | 1,168.8 | $ | 881.3 | $ | 2,050.1 | |||||||||||
(1) We had accumulated goodwill impairments of $923.2 million and $6.1 million as of December 31, 2025 and December 31, 2024, respectively.
(2) We had accumulated goodwill impairments of $1,404.1 million and $995.9 million as of December 31, 2025 and December 31, 2024, respectively.
(3) Goodwill allocated to our Dermacosmetics branded business was reduced by $8.1 million during the three months ended December 31, 2025.
CSCA and CSCI Reporting Unit Goodwill
During the three months ended December 31, 2025, our CSCA and CSCI reporting units had an indication of potential impairment due to a sustained decrease in share price, lower expected cash flows principally related to infant formula market dynamics and a change in near-term expectations of the broader self-care market for both the Americas and International business. The quantitative impairment test indicated that the carrying amount of our CSCA and CSCI reporting units exceeded their estimated fair value. As such, management recognized a goodwill impairment of $917.1 million for CSCA, resulting in $1,168.8 million of goodwill in this reporting unit after the impairment and recognized a goodwill impairment of $407.1 million for CSCI, resulting in $881.3 million of goodwill in this reporting unit after the impairment as of December 31, 2025.
Richard Bittner Business Goodwill
On March 10, 2025, the Company signed a definitive agreement to sell the Richard Bittner Business to HBI Health & Beauty Innovations Limited. As a result, we determined an impairment indicator existed and prepared a quantitative goodwill impairment test. We determined the carrying value of this business exceeded the fair value and recorded an impairment charge of $1.2 million within our CSCI segment during the three months ended March 29, 2025. On April 11, 2025, we completed the sale of the Richard Bittner Business to HBI Health & Beauty Innovations Limited (refer to Note 3).
Rare Diseases Business Goodwill
On April 25, 2024, we announced the receipt of a binding offer from ESTEVE to acquire the Rare Diseases Business within our CSCI segment. As a result, we determined an impairment indicator existed for the disposal
group, which was equivalent to the Rare Diseases reporting unit, and prepared a quantitative goodwill impairment test. We determined the carrying value of this disposal group exceeded the fair value and recorded an impairment of $22.1 million within our CSCI segment during the three months ended June 29, 2024. On July 10, 2024, we completed the sale of the Rare Diseases Business to ESTEVE (refer to Note 3 and Note 11).
Orion Laboratories Hospital & Specialty Business Goodwill
On September 14, 2024, we signed a definitive agreement to sell the Hospital & Specialty Business within our CSCI segment to Genesis Capital. As a result, we determined an impairment indicator existed and prepared a quantitative goodwill impairment test. We determined the carrying value of this business exceeded the fair value and recorded an impairment of $5.4 million within our CSCI segment during the year ended December 31, 2024. On November 1, 2024, we completed the sale of the Hospital & Specialty Business to General Pharma BidCo Pty Ltd (refer to Note 3).
Intangible Assets
Intangible assets and related accumulated amortization consisted of the following (in millions):
| Year Ended | |||||||||||||||||||||||
| December 31, 2025 | December 31, 2024 | ||||||||||||||||||||||
| Gross | Accumulated Amortization | Gross | Accumulated Amortization | ||||||||||||||||||||
Indefinite-lived intangibles: | |||||||||||||||||||||||
| Trademarks, trade names, and brands | $ | 3.5 | $ | — | $ | 3.3 | $ | — | |||||||||||||||
| In-process research and development | 1.1 | — | 1.9 | — | |||||||||||||||||||
| Total indefinite-lived intangibles | $ | 4.6 | $ | — | $ | 5.2 | $ | — | |||||||||||||||
Definite-lived intangibles: | |||||||||||||||||||||||
| Distribution and license agreements and supply agreements | $ | 109.5 | $ | 70.1 | $ | 101.9 | $ | 59.5 | |||||||||||||||
| Developed product technology, formulations, and product rights | 351.9 | 247.9 | 341.5 | 227.2 | |||||||||||||||||||
| Customer relationships and distribution networks | 1,845.5 | 1,257.2 | 1,750.6 | 1,112.3 | |||||||||||||||||||
| Trademarks, trade names, and brands | 2,446.3 | 826.5 | 2,301.5 | 672.8 | |||||||||||||||||||
| Non-compete agreements | 2.1 | 2.1 | 2.1 | 2.1 | |||||||||||||||||||
| Total definite-lived intangibles | $ | 4,755.3 | $ | 2,403.8 | $ | 4,497.6 | $ | 2,073.9 | |||||||||||||||
| Total intangible assets | $ | 4,759.9 | $ | 2,403.8 | $ | 4,502.8 | $ | 2,073.9 | |||||||||||||||
(1) Certain intangible assets are denominated in currencies other than U.S. dollar; therefore, their gross and net carrying values are subject to foreign currency movements.
As a result of entering into a binding agreement to sell the Dermacosmetics Business, during the year ended December 31, 2025, we reclassified $98.5 million net book value of associated intangible assets to Current assets held for sale (refer to Note 4).
As a result of the Company completing the sale of the Hospital & Specialty Business during the year ended December 31, 2024, $0.2 million net book value of associated intangible assets were divested (refer to Note 3).
As a result of the Company completing the sale of the Rare Diseases Business during the year ended December 31, 2024, $162.0 million net book value of associated intangible assets were divested (refer to Note 3).
During the year ended December 31, 2025, we identified an impairment indicator related to our Prevacid® definite-lived intangible asset in our CSCA segment. The indicator related to expected long-term decline in contribution margin. We determined a fair value assessment of the asset was required. The assessment resulted in an asset impairment of $1.5 million (refer to Note 11).
During the year ended December 31, 2024, we identified impairment indicators related to our Prevacid® definite-lived intangible asset in our CSCA segment. The indicators related to a reprioritization of brand support resulting in expected long-term decline in contribution margin. We determined the asset was not recoverable and the concluded fair value resulted in an of $38.6 million (refer to Note 11).
The remaining weighted-average useful life for our amortizable intangible assets by asset class at December 31, 2025 was as follows:
| Amortizable Intangible Asset Category | Remaining Weighted-Average Useful Life (Years) | |||||||
| Distribution and license agreements and supply agreements | 9 | |||||||
| Developed product technology, formulations, and product rights | 12 | |||||||
| Customer relationships and distribution networks | 12 | |||||||
| Trademarks, trade names, and brands | 14 | |||||||
We recorded amortization expense of $222.7 million, $228.5 million, and $265.8 million during the years ended December 31, 2025, December 31, 2024, and December 31, 2023, respectively.
Our estimated future amortization expense is as follows (in millions):
| Year | Amount | |||||||
| 2026 | $ | 219.7 | ||||||
| 2027 | 213.5 | |||||||
| 2028 | 206.8 | |||||||
| 2029 | 187.9 | |||||||
| 2030 | 169.4 | |||||||
| Thereafter | 1,354.2 | |||||||
About Goodwill & Intangibles Disclosures
Goodwill and intangible asset disclosures reveal the premium paid in acquisitions and how management assesses whether that premium retains its value. Since goodwill is no longer amortized under US GAAP, the annual impairment test is the only mechanism that adjusts carrying values downward — making the assumptions behind that test critically important for investors.
Key signals: a history of goodwill impairments suggests management consistently overpays for acquisitions. Watch the gap between reporting unit fair value and carrying amount — when fair value exceeds carrying amount by less than 10-20%, a small decline in business performance could trigger a write-down. For finite-lived intangibles, examine useful life assumptions across customer relationships, technology, and trade names; aggressive estimates inflate near-term earnings. Compare total intangibles-to-total-assets ratios against peers to assess acquisition dependency. Rising goodwill as a percentage of equity can signal balance sheet fragility.