PERRIGO Co plcPRGO

PERRIGO Co plc Revenue Disclosure

10-KFiled Feb 26, 20262 min read
REVENUE RECOGNITION
We generated net sales in the following geographic locations(1) (in millions):
Year Ended
December 31, 2025December 31, 2024December 31, 2023
U.S.$2,540.1 $2,649.3 $2,916.8 
Europe(2)
1,616.3 1,604.6 1,622.5 
All other countries(3)
96.7 119.5 116.3 
Total net sales$4,253.1 $4,373.4 $4,655.6 
(1)    The net sales by geography is derived from the location of the entity that sells to a third party.
(2)    Includes Ireland net sales of $42.1 million, $39.6 million, and $40.8 million for the years ended December 31, 2025, December 31, 2024, and December 31, 2023, respectively.
(3)    Includes revenue generated primarily in Australia and Canada during the years ended December 31, 2025, 2024 and 2023.

Product Category

The following is a summary of our net sales by category (in millions):

Year Ended
December 31, 2025December 31, 2024December 31, 2023
CSCA
Upper Respiratory$529.5 $500.3 $561.4 
Digestive Health442.1 497.4 507.5 
Nutrition408.5 449.5 563.2 
Pain and Sleep-Aids332.5 345.5 397.2 
Healthy Lifestyle316.4 306.8 311.4 
Oral Care256.9 275.4 310.4 
Skin Care214.9 220.1 240.5 
Women's Health72.4 81.1 48.6 
Vitamins, Minerals, and Supplements ("VMS")7.2 14.5 18.5 
Other CSCA(1)
4.8 3.1 3.6 
Total CSCA2,585.3 2,693.7 2,962.3 
CSCI
Skin Care407.7 410.0 372.5 
Upper Respiratory288.2 282.1 299.1 
Pain and Sleep-Aids235.4 222.2 222.9 
Healthy Lifestyle231.5 225.8 225.7 
VMS161.2 173.5 185.5 
Women's Health143.5 132.8 119.7 
Oral Care97.5 99.4 101.5 
Digestive Health40.3 36.5 41.0 
Other CSCI(1)
62.4 97.3 125.4 
Total CSCI1,667.7 1,679.6 1,693.3 
Total net sales$4,253.1 $4,373.4 $4,655.6 
(1)    Consisted primarily of our Rare Diseases Business in CSCI and other miscellaneous or otherwise uncategorized product lines in CSCA and CSCI, none of which is greater than 10% of the segment net sales.

While the majority of revenue is recognized at a point in time, certain of our product revenue is recognized on an over time basis. Predominately, over time customer contracts exist in contract manufacturing arrangements, which occur in both the CSCA and CSCI segments. Contract manufacturing revenue was $270.9 million, $306.2 million,
and $337.3 million for the years ended December 31, 2025, December 31, 2024, and December 31, 2023, respectively.

The following table provides information about contract assets from contracts with customers (in millions):
Balance Sheet LocationDecember 31, 2025December 31, 2024
Short-term contract assetsPrepaid expenses and other current assets$37.3 $43.9 

About Revenue Disclosures

Revenue disclosures under ASC 606 explain how a company identifies performance obligations, allocates transaction prices, and determines when revenue is recognized. This section is essential for understanding whether reported revenue reflects genuine economic activity or aggressive accounting choices. Analysts examine the mix of point-in-time versus over-time recognition, which directly affects revenue timing and comparability.

Key signals: rising contract liabilities (deferred revenue) suggest strong future revenue visibility, while declining contract assets may indicate slowing project milestones. Watch for variable consideration estimates — rebates, returns, and performance bonuses that require management judgment. Significant changes in disaggregated revenue by geography or product line can reveal shifting business mix before it appears in headline numbers. Compare revenue growth against contract liability growth to assess sustainability, and scrutinize any changes in the timing of recognition that coincide with earnings pressure.

Other Available Disclosures

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