DERIVATIVE INSTRUMENTS AND HEDGING ACTIVITIES (Tables)

6 Months Ended

Jun. 28, 2025

Derivative Instruments and Hedging Activities Disclosure [Abstract]

Schedule of Foreign Currency Forward Contracts

Notional amounts of foreign currency forward contracts were as follows (in millions):


	June 28, 2025		December 31, 2024
United States Dollar (USD)	$	132.8	$	97.9
British Pound (GBP)	73.9		101.3
European Euro (EUR)	55.3		54.9
Swedish Krona (SEK)	45.6		66.5
Danish Krone (DKK)	44.7		57.8
Polish Zloty (PLZ)	31.0		26.7
Chinese Yuan (CNH)	19.8		31.9
Canadian Dollar (CAD)	16.1		35.5
Hungarian Forint (HUF)	10.8		6.3
Norwegian Krone (NOK)	3.5		6.8






Other(1)	11.2		16.9
Total	$	444.7	$	502.5

(1) Number consists of notional amounts of various currencies, none of which individually exceed $10.0 million in either year presented.

Schedule of Derivative Instruments in Statement of Financial Position, Fair Value

The balance sheet location and gross fair value of our derivative instruments were as follows (in millions):



	Balance Sheet Location	June 28, 2025		December 31, 2024
Designated derivative assets:
Foreign currency forward contracts	Prepaid expenses and other current assets	$	2.2	$	2.1



Cross-currency swaps	Other non-current assets	—		14.2
Interest rate swap agreements	Interest rate swap agreements	3.5		9.3

Total designated derivative assets		$	5.7	$	25.6
Non-designated derivative assets:
Foreign currency forward contracts	Prepaid expenses and other current assets	$	4.8	$	3.4


Total non-designated derivatives		$	4.8	$	3.4
Designated derivative liabilities:
Foreign currency forward contracts	Other accrued liabilities	$	1.4	$	4.1

Cross-currency swaps	Other accrued liabilities	97.2		—
Cross-currency swaps	Other non-current liabilities	176.3		46.8
Interest rate swap agreements	Other non-current liabilities	22.1		9.0
Total designated derivative liabilities		$	297.0	$	59.9
Non-designated derivative liabilities:
Foreign currency forward contracts	Other accrued liabilities	$	4.4	$	1.5
Interest rate swap agreements	Other non-current liabilities	12.2		13.6
Total non-designated derivative liabilities		$	16.6	$	15.1

Schedule of Amount of Gain/(Loss) Recognized against Earnings

The amounts of (income)/expense recognized in earnings related to our non-designated derivatives on the Condensed Consolidated Statements of Operations were as follows (in millions):


		Three Months Ended				Six Months Ended
Non-Designated Derivatives	Income Statement Location	June 28, 2025		June 29, 2024		June 28, 2025		June 29, 2024
Foreign currency forward contracts	Other (income) expense, net	$	0.3	$	(2.6)	$	(0.8)	$	(3.3)







Interest rate swap agreements	Interest expense, net	$	0.2	$	14.4	$	0.4	$	14.4

Schedule of Cash Flow Hedges Included in Accumulated Other Comprehensive Income (Loss)

The following tables summarize the effect of derivative instruments designated as hedging instruments in AOCI (in millions):


			Gain or (Loss) Reclassified from AOCI into Earnings
			Related to Amounts Included in Effectiveness Testing			Related to Amounts Excluded from Effectiveness Testing
	Amount of Gain or (Loss) Recognized in OCI(1)		Location of Gain or (Loss)	Amount Reclassified(2)		Location of Gain or (Loss)	Amount Reclassified(2)
Three Months Ended June 28, 2025
Cash flow hedges

Interest rate swap agreements	$	(5.0)	Interest expense, net	$	4.4	Interest expense, net	$	—
Foreign currency forward contracts	2.8		Net sales	0.1		Net sales	(0.1)
			Cost of sales	0.1		Cost of sales	—
						Other (income) expense, net	(0.1)
Total Cash flow hedges	$	(2.2)		$	4.6		$	(0.2)

Net investment hedges
Cross-currency swaps	$	(169.0)				Interest expense, net	$	9.5
Euro Notes Due 2032	(31.0)
Total Net investment hedges	$	(200.0)					$	9.5

Six Months Ended June 28, 2025
Cash flow hedges

Interest rate swap agreements	$	(16.1)	Interest expense, net	$	9.1	Interest expense, net	$	—
Foreign currency forward contracts	3.3		Net sales	0.1		Net sales	(0.1)
			Cost of sales	0.4		Cost of sales	0.1
						Other (income) expense, net	(0.1)
Total Cash flow hedges	$	(12.8)		$	9.6		$	(0.1)

Net investment hedges
Cross-currency swaps	$	(228.9)				Interest expense, net	$	18.9
Euro Notes Due 2032	(47.4)
Total Net investment hedges	$	(276.3)					$	18.9

Three Months Ended June 29, 2024
Cash flow hedges
Interest rate swap agreements	$	6.6	Interest expense, net	$	8.6	Interest expense, net	$	—
Foreign currency forward contracts	(0.5)		Net sales	—		Net sales	(0.2)
			Cost of sales	0.1		Cost of sales	(0.2)
						Other (income) expense, net	—
Total Cash flow hedges	$	6.1		$	8.7		$	(0.4)

Net investment hedges
Cross-currency swaps	$	17.4				Interest expense, net	$	6.8

Six Months Ended June 29, 2024
Cash flow hedges
Interest rate swap agreements	$	40.1	Interest expense, net	$	16.3	Interest expense, net	$	—
Foreign currency forward contracts	(0.4)		Net sales	(0.1)		Net sales	(0.5)
			Cost of sales	0.1		Cost of sales	(0.4)
						Other (income) expense, net	(0.1)
Total Cash flow hedges	$	39.7		$	16.3		$	(1.0)

Net investment hedges
Cross-currency swaps	$	66.3				Interest expense, net	$	14.1

(1) Net income of $20.5 million is expected to be reclassified out of AOCI into earnings during the next 12 months.

(2) For additional details about the effect of the amounts reclassified from AOCI refer to Note 13.

Schedule of Classification of Gain (Loss) Recognized in Earnings on Fair Value and Cash Flow Hedging Relationships

The classification and amount of gain/(loss) recognized in earnings related to fair value and hedging relationships on the Condensed Consolidated Statement of Operations were as follows (in millions):


	Net Sales		Cost of Sales		Interest Expense, net		Other (Income) Expense, net
Three Months Ended June 28, 2025
Total amounts of income and expense line items presented on the Condensed Consolidated Statements of Operations in which the effects of fair value or cash flow hedges are recorded	$	1,056.3	$	693.4	$	39.6	$	2.6

Gain (loss) on cash flow hedging relationships
Foreign currency forward contracts
Amount of gain reclassified from AOCI into earnings	$	0.1	$	0.1	$	—	$	—
Amount excluded from effectiveness testing recognized using a systematic and rational amortization approach	$	(0.1)	$	—	$	—	$	(0.1)
Interest rate swap agreements
Amount of gain reclassified from AOCI into earnings	$	—	$	—	$	4.4	$	—

Six Months Ended June 28, 2025
Total amounts of income and expense line items presented on the Condensed Consolidated Statements of Operations in which the effects of fair value or cash flow hedges are recorded	$	2,100.2	$	1,345.0	$	78.6	$	2.2

Gain (loss) on cash flow hedging relationships
Foreign currency forward contracts
Amount of gain reclassified from AOCI into earnings	$	0.1	$	0.4	$	—	$	—
Amount excluded from effectiveness testing recognized using a systematic and rational amortization approach	$	(0.1)	$	0.1	$	—	$	(0.1)
Interest rate swap agreements
Amount of gain reclassified from AOCI into earnings	$	—	$	—	$	9.1	$	—

Three Months Ended June 29, 2024
Total amounts of income and expense line items presented on the Condensed Consolidated Statements of Operations in which the effects of fair value or cash flow hedges are recorded	$	1,065.5	$	670.8	$	44.1	$	3.4

Gain (loss) on cash flow hedging relationships
Foreign currency forward contracts
Amount of gain reclassified from AOCI into earnings	$	—	$	0.1	$	—	$	—
Amount excluded from effectiveness testing recognized using a systematic and rational amortization approach	$	(0.2)	$	(0.2)	$	—	$	—
Interest rate swap agreements
Amount of gain reclassified from AOCI into earnings	$	—	$	—	$	8.6	$	—

Six Months Ended June 29, 2024
Total amounts of income and expense line items presented on the Condensed Consolidated Statements of Operations in which the effects of fair value or cash flow hedges are recorded	$	2,147.5	$	1,395.1	$	87.1	$	3.8

Gain (loss) on cash flow hedging relationships
Foreign currency forward contracts
Amount of gain (loss) reclassified from AOCI into earnings	$	(0.1)	$	0.1	$	—	$	—
Amount excluded from effectiveness testing recognized using a systematic and rational amortization approach	$	(0.5)	$	(0.4)	$	—	$	(0.1)


Interest rate swap agreements
Amount of gain reclassified from AOCI into earnings	$	—	$	—	$	16.3	$	—

PERRIGO Co plc 10-Q